2023-03-31-accounts

REGISTERED CHARITY NUMBER: 222142

MELTON MOWBRAY TOWN ESTATE

REPORT OF THE FEOFFEES AND FINANCIAL STATEMENTS FOR THE YEAR ENDED

31 MARCH 2023

99 Chapel Street Ibstock Leicestershire LE67 6HF

MELTON MOWBRAY TOWN ESTATE

CONTENTS FOR THE YEAR ENDED 31 MARCH 2023

CONTENTS	PAGE
Report of the Feoffees’ & Charity information	1 - 3
Statement of Feoffees responsibilities	4
Report of the independent auditors	5 - 8
Statement of financial activities (incorporating the income and expenditure account)	9
Balance sheet	10
Notes to the financial statements	11 - 22

MELTON MOWBRAY TOWN ESTATE

REPORT OF THE FEOFFEES & CHAIRTY INFORMATION FOR THE YEAR ENDED 31 MARCH 2023

Even within the long and chequered history of Melton Mowbray Town Estate, the Financial Year 2022-23 proved to be a significant year.

The first half continued as in countless years before, with the charity failing to tackle, or even acknowledge, the increasing gap between day-to-day income and expenditure. As for so many earlier years, it was continuing to use its investment capital (its “savings”) to fill that gap – and thereby reduce future income from a dwindling value of investments.

Of course, the economic crisis in the country, Covid, austerity, inflation, changing attitudes to retail and leisure, and even climate change, made this approach increasingly untenable.

After the Town Meeting in October 2022, the Board accepted that the steady decline of the Town Estate, heavily disguised by its use of investment capital for revenue expenditure, could and must not continue in the medium or long term.

However, more immediate challenges faced the Board at that time: the Chair of the Board had announced in September that he would be standing down and, due to illness, there was no Chief Executive / Town Bailiff in place. In the absence of a CEO, an Interim Management Committee of Feoffees was appointed to support the day-to-day management of the charity. This arrangement remained in place until the end of the financial year as, despite strenuous efforts, it was not until 1 April that our new Chief Executive / Town Bailiff took up post.

It is to the enormous credit of the staff and those Feoffees heavily involved, that most people in the town were not aware of the challenges being faced by the Town Estate at this time.

Despite these challenges, it was during this second half of the financial year that the seeds of recovery and a more sustainable future were sown. Firstly, and crucially, the need to close the gap between expenditure and income was acknowledged by the Board, and gradually this acknowledgement was openly and honestly shared with staff, tenants, partners, and customers with whom the Town Estate interacts.

The Board and CEO / Town Bailiff are now vigorously improving the efficiency of the organisation, and how it fulfils its charitable aims, based on more realistic expectations

OBJECTIVES AND ACTIVITIES

Objectives and public benefit

The charity is established for the benefit of the inhabitants of the 'area of benefit' (i.e. the area of the old Melton Mowbray Urban District Council that is mainly, but not only, the postal area of LE13) in such ways as the Feoffees see fit. Primarily, the Town Estate endeavours to enhance the community life of the people of Melton Mowbray by providing parks, sports grounds, markets and other amenities.

In setting out objectives and planning their activities the Feoffees have given careful consideration to the Charity Commission's general guidance on public benefit.

How the public have benefitted in previous years – is exampled:

• The Town Estate operates town centre street markets on Tuesday and Saturdays; as well as other markets. It collaborates with partners to provide other special Sunday markets and events. The Town Markets benefit the town’s economy by increasing the footfall and attracting tourists. Market days on a Tuesday and a Saturday are the busiest days of the week, being a key to helping to protect the town centre from the modern challenges of street retail trading.

• The Town Estate owns and maintains the town centre parks, that offer recreational and sports facilities and, on Asfordby Road, an 18 hole par 3 golf and Foot and Disc Golf course, a dry sports/community room and a 50 pitch touring caravan park.

• The Town Estate also hosts visiting fairs and circuses and other events in the parks such as the Summer Sunday concerts in the bandstand. The Town Estate land holdings provide facilities for local youth groups, sports clubs and tenant farmers.

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MELTON MOWBRAY TOWN ESTATE

REPORT OF THE FEOFFEES & CHAIRTY INFORMATION FOR THE YEAR ENDED 31 MARCH 2023

Objectives and public benefit (continued…)

• The town centre parks and recreational facilities are maintained entirely by the Town Estate. These make a significant contribution to the life of the town centre and the health and wellbeing of its people.

In these, and other ways, the Town Estate provides a tangible benefit for the people of Melton Mowbray.

ACHIEVEMENTS AND PERFORMANCE Charitable activities

The objectives of the Town Estate are the care and preservation of its parks, gardens and sports grounds, the optimisation of trading activities that support the charity, including its investment portfolio, and the effective, efficient, legal operation of the charity.

Some specific matters from 2022/23 worthy of note include:

• The Jerusalem Arch, by the Memorial Gardens, was beautifully restored after being damaged by a car.

• The Platinum Jubilee Tree, and most of the 700 saplings the Town Estate planted in Egerton Park, survived the summer 2022 drought and heat wave, and will bring great pleasure to future generations.

• A Coronation Oak was planted; with the hope that someday a riverside walk will link the Jubilee and Coronation Trees.

• Sadly, the tenant providing the café & ice-cream kiosk in Wilton and Play Park decided to leave the town and although new tenants have now been found, much work has to be done to re-open the café.

• The tennis courts have been improved, and access using an on-line system was introduced.

• The sale of the old King Street College failed to go ahead after the project was removed from access to Levelling Up funds; this has left an albatross round the neck of the Town Estate and a redundant site in our town. We are redoubling our efforts to find a project that will enhance the town as soon as possible.

• The Town Estate Markets attract the highest footfall to the town. The importance to the town of the Town Estate’s markets is clear, yet largely goes unrecognised or acknowledged. Trading conditions remain challenging, with market contraction plain to see.

• Repayments of the Covid Bounce Back Loan of £50,000 have, as predicted, become a burden until it is fully repaid in the next two years.

FINANCIAL REVIEW

Principal funding sources

The main income streams of the charity derive from outdoor activities and are therefore directly affected by the weather. As the challenges arising from the COVID-19 pandemic eased, income from markets, sports facilities, car parks & caravans pitching began to improve.

Reserves policy

The Feoffees maintain investments in cash or easily realisable assets. The prime purpose of these investments is to provide income that finances charitable activities. However, they do provide a reserve that can be available to meet unplanned expenditure or cover shortfalls in income. At the balance sheet date £2,190,218 was held in investment portfolios (2022: £2,382,620). This is shown under the fixed assets heading.

Future Plans

The plans and priorities for the future year include:

• to continue to stabilise the finances and organisation of the Charity’s day-to-day operations

• to ensure income from trading and return on investments is sufficient to meet costs

• to reduce the need to draw down funds from capital invested, and cease to use such draw-downs as soon as possible

• to improve the sustainability of the charity so that it can better serve its charitable aims and the people of Melton Town

• to extend the range of activities and events provided directly and indirectly by the Town Estate

• to identify additional income streams that will support the charitable aims of the Town Estate.

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MELTON MOWBRAY TOWN ESTATE

REPORT OF THE FEOFFEES & CHAIRTY INFORMATION FOR THE YEAR ENDED 31 MARCH 2023

Future plans (continued…)

• to build partnerships with other organisations for the mutual benefit of the Town Estate, future partners, and the people of Melton Mowbray.

• to achieve the sale and redevelopment of the old King Street College site and a small piece of land off Nottingham Road.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Constitution

The charity is controlled by its governing document, a deed of trust, and constitutes an unincorporated charity. Melton Mowbray Town Estate was established in 1549 and is registered with the Charity Commission, reference number 222142. The governing document is the "Charity Commission Scheme" of 1 December 1989.

Recruitment and appointment of new Feoffees

The charity is organised as an independent association of local residents with a Board of Trustees’, called Feoffees, elected at an Annual General Meeting - The Town Meeting - held in October. Feoffees hold office for four years. The two Town wardens are elected annually at the Annual Town Meeting. The Town Bailiff is responsible to the Board for the day to day management of the charity. The Board also sets policy, takes major decisions and holds the Bailiff and staff to account for the effective and efficient organisation of the activities of the charity.

The Board of Feoffees wish to thank the Town Bailiff and her staff for their hard work in operating the town market and maintaining the parks, gardens and sports fields to a high standard throughout the year.

REFERENCE AND ADMINISTRATIVE DETAILS

Charity number: 222142

Feoffees

G. Bett (Chair) A. D’Angelo C. Gray H. Misiuda E. Tindall K. Hallam A. Holland I. Neale D. Hickling R. Sage P. Roffey T. Webster D. Whitehouse

Auditors

TC Group Statutory Auditors The Courtyard Shoreham Road Upper Beeding Steyning West Sussex BN44 3TN

Accountants

TC Group 99 Chapel Street Ibstock Leicestershire LE67 6HF

Bankers

HSBC Bank 17 High Street Melton Mowbray Leicestershire LE13 0TY

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MELTON MOWBRAY TOWN ESTATE

STATEMENT OF FEOFFEES’ RESPONSIBILITIES FOR THE YEAR ENDED 31 MARCH 2023

The Feoffees (who are also trustees of Melton Mowbray Town Estate for the purposes of charity law) are responsible for preparing the Report of the Feoffees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England and Wales, the Charities Act 2011, Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed requires the Feoffees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charity for that period. In preparing those financial statements, the Feoffees are required to

• select suitable accounting policies and then apply them consistently;

• observe the methods and principles in the Charity SORP;

• make judgements and estimates that are reasonable and prudent;

• state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business

The Feoffees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Approved by order of the Board of Feoffees on ……………………………… and signed on its behalf by:

Mr G. Bett

Chairman of Feoffees’

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MELTON MOWBRAY TOWN ESTATE

REPORT OF THE INDEPENDENT AUDITORS FOR THE YEAR ENDED 31 MARCH 2023

Opinion

We have audited the financial statements of Melton Mowbray Town Estate (the ‘charity’) for the year ended 31 March 2021 which comprise the Statement of Financial Activities (incorporating the Income and Expenditure account), the Balance Sheet and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

• give a true and fair view of the state of the charity’s affairs as at 31 March 2021, and of its incoming resources and application of resources, for the period then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

• have been prepared in accordance with the requirements of the Charities Act 2011.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the Feoffees use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorise for issue.

Our responsibilities and the responsibilities of the Feoffees with respect to going concern are described in the relevant sections of this report.

Other information

The Feoffees’ are responsible for the other information and the information within the Feoffees report. The other information comprises the information included in the Feoffees’ annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial

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MELTON MOWBRAY TOWN ESTATE

REPORT OF THE INDEPENDENT AUDITORS FOR THE YEAR ENDED 31 MARCH 2023

statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Feoffees’ report.

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

• adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

• the financial statements are not in agreement with the accounting records and returns; or

• certain disclosures of director’s remuneration specified by law are not made; or

• we have not received all the information and explanations we require for our audit; or

Responsibilities of Feoffees’

As explained more fully in the Feoffees’ responsibilities statement the feoffees’ are responsible for the preparation of financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Feoffees’ determines to be necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the Feoffees’ are responsible for assessing the charities ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Feoffees’ either intends to disband the charity or to cease operations, or has no alternative but to do so.

In preparing the financial statements, the Feoffees’ are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Feoffees’ either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

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MELTON MOWBRAY TOWN ESTATE

REPORT OF THE INDEPENDENT AUDITORS FOR THE YEAR ENDED 31 MARCH 2023

Extent to which the audit was considered capable of detecting irregularities, including fraud

The objectives of our audit in respect to fraud, are: to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses; and to respond appropriately to fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and its management.

Our approach was as follows:

• We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience, and through discussion with the Feoffees’ and other management (as required by auditing standards), and discussed with the Feoffees’ and other management the policies and procedures regarding compliance with laws and regulations;

• We considered the legal and regulatory frameworks directly applicable to the financial statements reporting framework (FRS 102 and the Charities SORP) and the relevant tax compliance regulations in the UK;

• We considered the nature of the industry, the control environment and charity performance, including the key drivers for management remuneration;

• We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit;

• We considered the procedures and controls that the company has established to address risks identified, or that otherwise prevent, deter and detect fraud; and how senior management monitors those programmes and controls

Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Where the risk was considered to be higher, we performed audit procedures to address each identified fraud risk. These procedures included: testing manual journals, reviewing the financial statement disclosures and testing to supporting documentation; performing analytical procedures; and enquiring of management, and were designed to provide reasonable assurance that the financial statements were free from fraud or error.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (Irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: https://www.frc.org.uk/our-work/audit-and-assurance/standards-andguidance-for-auditors/auditors-responsibilties-for-audit/description-of-auditors-responsibilities-for-audit.aspx. This description forms part of our auditor’s report.

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MELTON MOWBRAY TOWN ESTATE

REPORT OF THE INDEPENDENT AUDITORS FOR THE YEAR ENDED 31 MARCH 2023

Use of our report

This report is made solely to the charity’s Feoffees’, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity’s Feoffees’ those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s Feoffees’ as a body, for our audit work, for this report, or for the opinions we have formed.

Mark Cummins (Senior Statutory Auditor) For and on behalf of

TC Group Statutory Auditor The Courtyard Shoreham Road Upper Beeding Steyning BN44 3TN

Date:

TC Group is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006.

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MELTON MOWBRAY TOWN ESTATE

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2023

		Unrestricted	Restricted	Endowment	Total funds	Total Funds
		Funds	Funds	Fund	2023	2022
	Note	£	£	£	£	£
INCOME AND ENDOWMENTS
FROM
Donations and legacies	2	(4,547)	1,000	-	(3,547)	76,474
Charitable activities
Other trading activities	3	121,355	-	-	121,355	129,301
Investment income	4	218,821	197	-	219,018	133,134
Parks and sports grounds	5	154,550	-	-	154,550	148,867
Other income	6	2,404	-	-	2,404	26,907
		----------------------------------------------------	--------------------------------------------------	-------------------------------------------------	--------------------------------------------------	----------------------------------------------------
TOTAL		492,583	1,197	-	493,780	514,683
		----------------------------------------------------	--------------------------------------------------	-------------------------------------------------	--------------------------------------------------	----------------------------------------------------
EXPENDITURE ON
Raising funds	7	211,990	-	-	211,990	216,356
Charitable activities
Parks and sports grounds	8	420,720	16,628	-	437,348	383,173
		-------------------------------------------------------	-------------------------------------------------	-----------------------------------------------	---------------------------------------------------	------------------------------------------------------
TOTAL		632,710	16,628	-	649,338	599,529
		----------------------------------------------------	------------------------------------------------	-----------------------------------------------	--------------------------------------------------	-----------------------------------------------------
Net gains/(losses) on
investments		(135,927)	-	-	(135,927)	120,174
		----------------------------------------------------	------------------------------------------------	------------------------------------------------	------------------------------------------------	---------------------------------------------------
NET
INCOME/(EXPENDITURE)		(276,054)	(15,431)	-	(291,485)	35,328
Transfer between funds	20	700	(700)	-
		-----------------------------------------------	--------------------------------------------------	----------------------------------------------	------------------------------------------------	------------------------------------------------
NET MOVEMENT IN FUNDS		(253,865)	(16,131)	-	(291,485)	35,328
RECONCILIATION OF FUNDS
Total funds brought forward		4,668,939	28,639	203,000	4,900,578	4,865,250
		-----------------------------------------------	--------------------------------------------------	-----------------------------------------------	------------------------------------------------	------------------------------------------------
TOTAL FUNDS CARRIED
FORWARD		4,393,585	12,508	203,000	4,609,093	4,900,578
		======================================	=======================================	=======================================	====================================	====================================

The Statement of Financial Activities includes all gains and losses recognised in the year.

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MELTON MOWBRAY TOWN ESTATE

BALANCE SHEET

FOR THE YEAR ENDED 31 MARCH 2023

		Unrestricted	Restricted	Endowment	Total funds	Total Funds
		Funds	Funds	Fund	2023	2022
	Note	£	£	£	£	£
FIXED ASSETS
Tangible assets	14	2,317,877	-	203,000	2,520,877	2,537,608
Investments	15	2,190,218	-	-	2,190,218	2,382,620
		------------------------------------------------	-------------------------------------------------	------------------------------------------------	------------------------------------------------	------------------------------------------------
		4,508,095	-	203,000	4,711,095	4,920,228
CURRENT ASSETS
Stocks	16	1,000	-	-	1,000	1,000
Debtors	17	34,551	-	-	34,551	37,222
Assets held for sale		5,000	-	-	5,000	5,000
Cash at bank		4,249	21,177	-	25,426	94,174
		------------------------------------------------	-------------------------------------------------	------------------------------------------------	------------------------------------------------	-----------------------------------------------
		44,800	21,177	-	65,977	137,396
CREDITORS
Amounts falling due
within one year	18	(142,669)	-	-	(142,669)	(122,131)
		-------------------------------------------------	-------------------------------------------------	------------------------------------------------	------------------------------------------------	-----------------------------------------------
NET CURRENT
ASSETS/LIABILITIES		(97,869)	21,177	-	(76,692)	15,265
		------------------------------------------------	-------------------------------------------------	-----------------------------------------------	------------------------------------------------	-----------------------------------------------
CREDITORS
Amounts falling due over
one year	19	(25,310)	-	-	(25,310)	(34,915)
		------------------------------------------------	-------------------------------------------------	-----------------------------------------------	------------------------------------------------	-----------------------------------------------
TOTAL ASSETS LESS
LIABILITIES		4,384,916	21,177	203,000	4,609,093	4,900,578
		------------------------------------------------	-------------------------------------------------	-----------------------------------------------	-----------------------------------------------	------------------------------------------------
NET ASSETS		4,384,916	21,177	203,000	4,609,093	4,900,578
		------------------------------------------------	-------------------------------------------------	-----------------------------------------------	-----------------------------------------------	====================================
FUNDS	20
Unrestricted funds					4,393,585	4,668,939
Restricted general funds					12,508	28,639
Endowment funds					203,000	203,000
					-----------------------------------------------	----------------------------------------------
TOTAL FUNDS					4,609,093	4,900,578
					======================================	======================================

The financial statements were approved by the board of Feoffees on the ………………………….. and are signed on its behalf by:

.............................................. Mr G. Bett Chairman of Feoffees

Registered Charity Number: 222142

The notes on pages 11 to 23 form part of these financial statements

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MELTON MOWBRAY TOWN ESTATE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

1. ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charity, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Charities Act 2011. The financial statements have been prepared under the historical cost convention with the exception of investments which are included at market value, as modified by the revaluation of certain assets.

Going concern

At the time of approving the financial statements, the feoffees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the feoffees continue to adopt the going concern basis of accounting in preparing the financial statements.

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Allocation and apportionment of costs

Costs have been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life:

Freehold land and buildings	- See below
Miniature railway	- 2% straight line on cost less residual value
Sports grounds - capital expenditure	- 2% straight line on cost less residual value
Sports ground - equipment	- 15% on reducing balance and 10% on cost
Machinery and implements	- 20% on reducing balance and 5% on cost
Market stalls	- 10% on reducing balance
Office equipment	- 20% on reducing balance

Depreciation has not been provided on land as it is considered that the depreciable amounts (cost or valuation less residual value) is £nil. The value is regularly reviewed, and consideration given to any permanent impairment in value. Buildings consist of freehold buildings as well as improvements. Assets within this class have been determined to have a useful life of between 30 – 50 years and depreciation has been charged on cost less residual value.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

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MELTON MOWBRAY TOWN ESTATE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

1. ACCOUNTING POLICIES (CONTINUED)

Taxation

The charity is exempt from tax on its charitable activities. Trading activities have been reviewed and fall under the Small Trading Income Exemption and therefore are not subject to tax.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the feoffees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

Pension costs and other post-retirement benefits

The charity operates a defined contribution pension scheme. Contributions payable to the charity's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.

Adjustments for value added tax

The figures in the accounts are exclusive of VAT. The Town Estate is treated as partially exempt for VAT purposes and as a result it was unable to obtain relief for all VAT paid. The amount unrelieved is shown in the accounts as a separate figure.

Investments

In order to comply with the Charities Accounting Statement of Recommended Practice (SORP), investments are stated at market value. Gains and losses on investments shown in the Statement of Financial Activities comprise realised and unrealised gains and losses. Realised gains and losses are calculated by comparing proceeds received with the original cost of the investment. Unrealised gains and losses are calculated by comparing the market values of investments held at the beginning and end of the accounting period, or by comparing the relevant market value with acquisition cost.

Endowment funds

The Statement of Recommended Practice for Accounting and Reporting by Charities states that endowment funds should be distinguished from unrestricted and other restricted funds, some of which are called Permanent Endowment, in order to show a true and fair view of the activities during the year. The Feoffees have reviewed the terms of donations and the origins of the assets of the Town Estate in order to distinguish endowment funds from unrestricted funds. They believe that the only definite Permanent Endowment has been the donation relating to Priors Close, Melton Mowbray. In a prior year, a transfer of £203,000 was made from unrestricted funds into restricted permanent endowment funds.

2. INCOME FROM DONATIONS AND LEGACIES

	2023	2022
	£	£
Donations and small grants	1,128	1,025
Grants	(4,675)	39,454
COVID grants (CJRS, small business & local restriction grants)	-	35,995
	------------------------------------------------	------------------------------------------------
Total	(3,547)	76,474
	====================================	====================================

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MELTON MOWBRAY TOWN ESTATE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

3. OTHER TRADING ACTIVITIES

	2023	2022
	£	£
Saturday markets	22,616	23,703
Tuesday markets	65,275	71,853
Craft and antique markets	10,194	12,810
Sundry market charges	5,270	2,935
Market charter rights	18,000	18,000
	-----------------------------------------------	-----------------------------------------------
Total	121,355	129,301
	====================================	====================================
ESTMENT INCOME
	2023	2022
	£	£
Income from investments & bank accounts	66,211	67,435
Land rents	152,807	65,699
	-----------------------------------------------	------------------------------------------------
Total	219,018	133,134
	====================================	====================================

4. INVESTMENT INCOME

During the current and previous year, all investment income that has been received is to be treated as unrestricted income for the purposes of the charity.

5. INCOME FROM CHARITABLE ACTIVITIES

Income from parks and sports grounds £154,550 (2022 - £148,867)

During the current and previous year, all charitable activity income that has been received is to be treated as unrestricted income for the purposes of the charity.

6. OTHER INCOME

Other income resources, include gains on disposals of fixed assets, amounting to £2,404 (2022 - £26,907).

-13-

MELTON MOWBRAY TOWN ESTATE

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

7. RAISING FUNDS

Raising from trading activities

	2023	2022
	£	£
Staff costs	78,868	77,345
Donations	325	300
Rates	(747)	4,088
Insurance	3,031	3,225
Repairs and street cleaning	11,182	13,367
Fuel and oil	5,304	4,569
Vehicle tax and insurance	3,155	1,396
Vehicle maintenance	3,696	3,486
Work clothing	237	189
Car park costs	-	80
Depreciation	6,753	8,194
Support costs	92,291	91,616
	------------------------------------------------	----------------------------------------------
	204,093	207,855
	------------------------------------------------	----------------------------------------------
tment management costs
	2023	2022
	£	£
Portfolio management fees	7,897	8,501
	-----------------------------------------------	-----------------------------------------------
	-----------------------------------------------	-----------------------------------------------
Aggregate amounts	211,990	216,356
	====================================	====================================

Investment management costs

-14-

MELTON MOWBRAY TOWN ESTATE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

8. CHARITABLE ACTIVITIES COSTS

		Direct costs	Support costs
		(See note 9)	(See note 10)	Total
		£	£
	Parks and sports grounds	345,057	92,291	437,348
		------------------------------------------------	-----------------------------------------------	------------------------------------------------
9.	DIRECT COSTS OF CHARITABLE ACTIVITIES
			2023	2022
			£	£
	Staff costs		184,025	180,471
	Purchases, refreshments etc…		17,300	9,132
	Rates and water		39	435
	Insurance		14,724	15,665
	Plants, seeds, fertilisers etc…		2,354	4,733
	Repairs, renewals and maintenance		78,483	43,605
	Implements and workshop expenditure		215	111
	Electricity and gas		25,493	13,975
	Band hire		-	2,370
	Fuel and oil		5,304	4,569
	Vehicle tax and insurance		3,155	1,396
	Vehicle maintenance		3,696	3,486
	Work clothing		237	191
	Depreciation		10,034	11,420
			------------------------------------------------	------------------------------------------------
			345,057	291,559
			====================================	====================================

10. SUPPORT COSTS

			Governance
	Management	Finance	costs	Total
	£	£	£	£
Other trading activities	75,193	-	17,098	92,291
Parks and sports grounds	75,193	-	17,098	92,291
	------------------------------------------------	----------------------------------------------	----------------------------------------------	-----------------------------------------------
	150,385	-	34,196	184,581
	====================================	====================================	====================================	====================================

The Feoffees estimate that half of the charity’s management time is spent on managing the trading activities and the other half on managing the parks and sports grounds, hence support costs are split accordingly.

-15-

MELTON MOWBRAY TOWN ESTATE

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

10. SUPPORT COSTS - continued

Support costs, included in the above, are as follows:

Management

			2023	2022
	Other trading	Parks and
	activities	sports grounds	Total activities	Total activities
	£	£	£	£
Wages	26,283	26,283	52,565	61,877
Social security	2,719	2,719	5,438	6,475
Pensions	1,255	1,255	2,511	2,933
Rates and water	35,016	35,016	70,031	8,236
Insurance	434	434	867	922
Telephone	2,419	2,419	4,838	4,288
Postage and stationery	455	455	909	1,956
Sundries	4,282	4,282	8,564	32,481
Computer maintenance	585	585	1,169	320
Bank charges	1,747	1,747	3,494	2,465
	-------------------------------------------------	-------------------------------------------------	------------------------------------------------	-----------------------------------------------
	75,193	75,193	150,385	121,953
	====================================	====================================	====================================	====================================
nce
	Other
	trading	Parks and	2023	2022
	activities	sports grounds	Total activities	Total activities
	£	£	£	£
Wages	1,575	1,575	3,150	3,150
Auditors’ remuneration	2,500	2,500	5,000	5,000
Insurance	1,516	1,516	3,031	3,225
Accountancy and legal fees	11,508	11,508	23,015	49,903
	------------------------------------------------	-------------------------------------------------	------------------------------------------------	-----------------------------------------------
	17,098	17,098	34,196	61,278
	====================================	====================================	====================================	====================================

Governance

-16-

MELTON MOWBRAY TOWN ESTATE

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

11. FEOFFEES’ REMUNERATION AND BENEFITS

There were no Feoffees’ remuneration or other benefits for the year ended 31 March 2023 nor for the year ended 31 March 2022.

Feoffees’ expenses

There were no feoffees’ expenses paid for the year ended 31 March 2023 nor for the year ended 31 March 2022.

12. STAFF COSTS

	2023	2022
	£	£
Wages and salaries	294,952	299,033
Social security costs	19,138	19,763
Other pension costs	12,465	13,485
	-----------------------------------------------	------------------------------------------------
	326,556	332,251
	====================================	====================================
age monthly number of employees during the year was as follows:
	2022	2021
General staff	11	13
Administration staff	3	3
	-----------------------------------------------	------------------------------------------------
	14	16
	====================================	====================================

The average monthly number of employees during the year was as follows:

No employees received emoluments in excess of £60,000 during the period.

Key Management Personnel

Senior management & Feoffees are consider to be key management personnel of the charity. During the year the aggregate remuneration of key management personnel, including benefits in kind, was £22,710, plus the company paid pension contributions in respect of senior management of £2,175

-17-

MELTON MOWBRAY TOWN ESTATE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

13. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

		Unrestricted	Unrestricted	Restricted	Endowment	Total Funds	Total Funds
		Funds		Funds	Fund	2022	2021
	Note		£	£	£	£	£
INCOME AND ENDOWMENTS
FROM
Donations and legacies	2		75,459	1,015	-	76,474	195,541
Charitable activities
Other trading activities	3		129,301	-	-	129,301	85,469
Investment income	4		133,134	-	-	133,134	143,797
Parks and sports grounds	5		148,867	-	-	148,867	102,147
Other income	6		(543)	27,450	-	26,907	4,132
		----------------------------------------------------		--------------------------------------------------	-------------------------------------------------	--------------------------------------------------	------------------------------------------------
TOTAL			486,218	28,465	-	514,683	531,086
		----------------------------------------------------		-------------------------------------------------	-------------------------------------------------	--------------------------------------------------	------------------------------------------------
EXPENDITURE ON
Raising funds	7		216,356	-	-	216,356	229,211
Charitable activities
Parks and sports grounds	8		383,173	-	-	383,173	441,766
		-------------------------------------------------------		-------------------------------------------------	-----------------------------------------------	--------------------------------------------------	------------------------------------------------
TOTAL			599,529	-	-	599,529	670,978
		----------------------------------------------------		------------------------------------------------	-----------------------------------------------	--------------------------------------------------	----------------------------------------------
Net gains/(losses) on
investments	15		120,174	-	-	120,174	364,440
		----------------------------------------------------		------------------------------------------------	------------------------------------------------	------------------------------------------------	---------------------------------------------------
NET
INCOME/(EXPENDITURE)			6,863	28,465	-	35,328	224,549
Transfer between funds	20		13,025	(13,025)	-	-	-
		-----------------------------------------------		--------------------------------------------------	----------------------------------------------	------------------------------------------------	------------------------------------------------
NET MOVEMENT IN FUNDS			19,888	15,440	-	35,328	224,549
RECONCILIATION OF FUNDS
Total funds brought forward		4,649,051		13,199	203,000	4,865,250	4,640,701
		-----------------------------------------------		--------------------------------------------------	-----------------------------------------------	------------------------------------------------	------------------------------------------------
TOTAL FUNDS CARRIED
FORWARD		4,668,939		28,639	203,000	4,900,578	4,865,250
		======================================		=======================================	=======================================	====================================	====================================

-18-

MELTON MOWBRAY TOWN ESTATE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

14. TANGIBLE FIXED ASSETS

			Sports ground
	Freehold land	Miniature	– Capital	Sports ground
	and buildings	railway	expenditure	- equipment
	£	£	£	£
COST
At 1 April 2022	2,074,966	7,320	383,102	198,599
Additions	-	-	-	836
	------------------------------------------------	----------------------------------------------	-----------------------------------------------	-----------------------------------------------
At 31 March 2023	2,074,966	7,320	383,102	199,435
DEPRECIATION
At 1 April 2022	18,665	-	-	157,457
Charge for the year	3,733	-	-	6,301
	------------------------------------------------	----------------------------------------------	-----------------------------------------------	-----------------------------------------------
At 31 March 2023	22,398	-	-	163,758
NET BOOK VALUE
At 31 March 2022	2,056,301	7,320	383,102	41,142
	====================================	====================================	====================================	====================================
At 31 March 2023	2,052,568	7,320	383,102	35,677
	====================================	====================================	====================================	====================================
	Machinery and	Market	Office
	implements	stalls	equipment	Totals
	£	£	£	£
COST
At 1 April 2021	154,299	94,162	10,690	2,923,139
Additions	358	-	-	1,194
Disposals	(36,130)	-	-	(36,130)
	------------------------------------------------	----------------------------------------------	-----------------------------------------------	-----------------------------------------------
At 31 March 2022	118,527	94,162	10,690	2,888,203
DEPRECIATION
At 1 April 2021	135,262	63,616	10,531	385,531
Charge for the year	3,666	3,055	32	16,787
Charge on disposals	(34,992)	-	-	(34,992)
	------------------------------------------------	----------------------------------------------	-----------------------------------------------	-----------------------------------------------
At 31 March 2023	103,936	66,671	10,563	367,326
NET BOOK VALUE
At 31 March 2022	19,037	30,547	159	2,537,608
	====================================	====================================	====================================	====================================
At 31 March 2023	14,591	27,492	127	2,520,877
	====================================	====================================	====================================	====================================

The freehold land and buildings are included at deemed cost, and during the year, King Street College was made available for sale and in line with applicable accounting standards has been transferred at cost to assets held for sale. Priors Close is held as a Permanent Endowment and included in the freehold land and buildings at a value of £203,000.

-19-

MELTON MOWBRAY TOWN ESTATE

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

15. FIXED ASSET INVESTMENTS

		2023	2022
		£	£
	Shares	649,121	741,853
	COIF Charities Investment Fund (CCLA)	1,541,098	1,621,252
	Cash balances (HSBC)	19,514	19,514
		-----------------------------------------------	------------------------------------------------
		2,209,733	2,382,620
		====================================	====================================
15.	FIXED ASSET INVESTMENTS – continued
Additional information as follows:
		2023	2022
	MARKET VALUE - Investments	£	£
	Brought forward	741,583	833,362
	Additions	92,575	719,087
	Disposals	(136,965)	(804,150)
	Revaluations	(55,773)	(6,446)
		-----------------------------------------------	------------------------------------------------
	Carried forward	641,390	741,853
		====================================	====================================
Investment cash balances at the year-end were £7,330 (2022: (£19,514))
COIF	Charities Investment Fund (CCLA) movements were as follows:
		2023	2022
		£	£
	Brought forward	1,621,252	1,494,428
	Revaluations	(80,154)	126,824
		-----------------------------------------------	------------------------------------------------
	Carried forward	1,541,098	1,621,252
		====================================	====================================
16.	STOCKS
		2023	2022
		£	£
	Refreshments for resale	750	750
	Garage stock	250	250
		-----------------------------------------------	------------------------------------------------
		1,000	1,000
		====================================	====================================

-20-

MELTON MOWBRAY TOWN ESTATE

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

17. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

	2023	2022
	£	£
Trade debtors	31,847	20,678
Other debtors	543	5,115
Prepayments	-	5,375
VAT	2,161	6,054
	-----------------------------------------------	------------------------------------------------
	34,551	37,222
	====================================	====================================
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
	2023	2022
	£	£
Trade creditors	114,676	95,037
Other creditors	8,149	8,986
Taxation and social security	9,196	7,460
Bounce back loan	10,648	10,648
	-----------------------------------------------	------------------------------------------------
	142,669	122,131
	====================================	====================================

18. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

19. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

	2023	2022
	£	£
Bounce back loan	25,310	34,915
	-----------------------------------------------	------------------------------------------------
	25,310	34,915
	====================================	====================================

During the year ended 31 March 2020 the bounce back loan facility was exercised. A government backed loan facility whereby the first 12 months of interest is covered by the UK Government, with a fixed term of 2.5% interest over the following 60 monthly repayments. The total value of the loan taken by Melton Mowbray Town Estate was £50,000.

-21-

MELTON MOWBRAY TOWN ESTATE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

20. MOVEMENT IN FUNDS

			Net movement in	Transfers	At 31 March
		At 1 April 2022	funds	between funds	2023
		£	£	£	£
	Unrestricted funds
	General fund	4,668,939	(276,054)	700	4,393,585
	Restricted funds
	The Big Picture Appeal	1,148	(1,448)	300	-
	Melton Lottery	41	18	-	59
	Jerusalem Arch	27,450	(15,000)	-	12,450
	Anonymous donation	-	1,000	(1,000)	-
		------------------------------------------------	----------------------------------------------	-----------------------------------------------	-----------------------------------------------
		28,639	(15,430)	(700)	12,509
	Endowment funds
	Priors Close	203,000	-	-	203,000
		------------------------------------------------	----------------------------------------------	-----------------------------------------------	-----------------------------------------------
	TOTAL FUNDS	4,900,578	(291,484)	-	4,609,094
21.	MOVEMENT IN FUNDS	(Comparative)
			Net movement in	Transfers	At 31 March
		At 1 April 2021	funds	between funds	2022
		£	£	£	£
	Unrestricted funds
	General fund	4,649,051	6,863	13,025	4,668,939
	Restricted funds
	The Big Picture Appeal	148	1,000	-	1,148
	Melton Lottery	26	15	-	41
	Jerusalem Arch	-	27,450	-	27,450
	Romy Memorial Fund	13,025	-	(13,025)	-
		------------------------------------------------	----------------------------------------------	-----------------------------------------------	-----------------------------------------------
		13,199	28,465	(101,118)	28,639
	Endowment funds
	Priors Close	203,000	-	-	203,000
		------------------------------------------------	----------------------------------------------	-----------------------------------------------	-----------------------------------------------
	TOTAL FUNDS	4,865,250	35,328	-	4,900,578

-22-