2022-03-31-accounts

PADDINGTON RECREATION GROUND CHARITABLE TRUST Report and Financial Statements Year Ended: 31 March 2022 Charity Number: 295449

Contents

1. TRUSTEES’ REPORT

Trustees’ Report Page 3

2. KEY STATEMENTS

Trustees Statement of Responsibilities for the Financial Statements Page 9

Independent Auditor’s

Report to the Trustees

Page 10

3. CORE FINANCIAL 4. NOTES TO THE STATEMENTS FINANCIAL STATEMENTS

Statement of Financial Activities Page 14

Note 1

Accounting Policies Page 17

Balance Sheet

Note 2

Income from Charitable Activities Page 19

Page 15

Cash Flow Statement Page 16

Note 3

Charitable Activities Page 19

Note 4

Net Income/ (Expenditure) Page 21

Note 5

Fixed Assets Page 22

Note 7

Creditors due within one year Page 23

Note 8

Capital Commitments Page 23

Note 9

Analysis of Net Assets between Funds Page 24

Note 10

Movement of Funds Page 24

Note 11

Controlling Party and Related Party Transactions Page 25

Note 6

Debtors Page 23

Note 12

Reconciliation of Net Movements in Funds to Net Cashflow from Operating Activities Page 25

Trustees’ Report

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2022

The Trustees present their report along with the financial statements of the Trust for the year ended 31 March 2022. The financial statements have been prepared in accordance with the accounting policies set out in the notes to the accounts and comply with the Trust’s governing document, the Charities Act 2011 and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the financial reporting standard applicable (FRS 102) in the UK and Republic of Ireland effective from January 1 2019. The accounts as presented give a true and fair view of the Trust’s incoming resources and application of resources during the year and of its state of affairs at the end of the year.

OBJECTIVES AND ACTIVITIES

The purpose of the charity is set out in Section 10 of the Paddington Recreation Ground Act 1893, which stipulated that:

"The Vestry of Paddington shall maintain and preserve in perpetuity the land acquired by them under this Act for the purposes of a recreation ground open to the public free of charge for admission to any part thereof and so that portions of the said grounds may be set apart and maintained for the purpose of cricket, football, lawn tennis and cycling, or other lawful games and the said Vestry may make reasonable charges for the use of the ground for such purposes and apply all moneys received in respect of such

charges towards the cost of maintenance of the said recreation ground or as the said Vestry shall otherwise determine".

Westminster City Council, as successor to the Vestry of Paddington, continues to maintain Paddington Recreation Ground in accordance with the objectives set out above. The entire facility is maintained, managed, and operated under contract with Westminster City Council, by Sports and Leisure Management Limited (from 1 July 2016). All expenditure, income and funding bids are conducted through the Council.

AIMS

The main aims of the Trust are:

• Aim 1 - To increase the number of visitors to the Ground and enhance the visitor experience.

• Aim 2 - To provide high quality, cost effective and customer responsive leisure and horticultural features.

• Aim 3 - To ensure equality of access to sporting and recreational opportunities for all people, in particular, removing barriers that prevent participation.

• Aim 4 - To continue to ensure the park remains safe, clean, and aesthetically pleasing for users.

• Aim 5 - To increase the Ground’s designation from a Site of Local Importance to a Site of Borough Importance for Nature Conservation.

ACHIEVEMENTS AND PERFORMANCE

Paddington Recreation Ground was once again awarded the Green Flag Award for 2021/22. This is a national standard for parks that means the site meets the highest operational and maintenance standards and is assessed annually by judges appointed by the Green Flag Awards and Keep Britain Tidy organisations. Other awards were London in Bloom, where the site achieved Gold level, and the site retained the industry specific national Quest Awards.

Capital works for 2021/22 consisted of: LED floodlight upgrade in cricket nets and tennis courts, tennis court 1-7 resurfacing and equipment replace, refurbishment of the dog exercise areas, installation of solar panels, pathway patch repairs, replacement of petrol landscaping machinery to electric, additional playground equipment.

FUTURE PLANS

The Trust plans continued capital investment and improvement of the structure and facilities to increase usage at Paddington Recreation Ground. This includes further improvements to the playground, environmental area, Forest Garden, flood prevention works, pitch fencing works.

Trustees’ Report (continued)

DEVELOPMENTS AND ACTIVITIES

A number of improvements have been delivered across the site in 2021/2022. These include:

• Tennis Courts 1-7 resurfacing was undertaken in April 2021, following a public consultation. The facility offers 4 new synthetic courts and 3 macadam courts which can also be used for netball.

• The dog exercise areas now known as ‘Barks Parks’ were completely overhauled with new agility equipment, planting schemes, watering points and ornate fencing. This has made the areas more accessible, welcoming and aesthetically pleasing.

• As part of Westminster City Council’s Carbon Reduction programme, Paddington Recreation Ground introduced solar panels at both the colleague maintenance facility and the fitness suite. In addition, the replacement of petrol machinery for landscaping colleagues to electric items has continued, with circa 84% now electric.

• Ongoing path repairs as part of the planned maintenance improvement works are underway- providing more accessible paths and for reactional users, those with additional needs and runners alike.

• Numbers of users and customers continues to increase.

STATEMENT OF PUBLIC BENEFIT

The activities of the Trust deliver significant public benefit in terms of providing free to access and lowcost facilities for rest and relaxation as well as opportunities for casual and organised play, physical activity, leisure and/or sport. Trust activities are supported by the Park Management Plan, which is part of an annual management process and is updated each year to reflect that year’s priorities and Westminster City Council policies.

We have referred to the Charity Commission’s general guidance on public benefit when reviewing our aims and objectives. We are confident that Paddington Recreation Ground Charitable Trust meets the public benefit requirement.

Trustees’ Report (continued)

RISK MANAGEMENT

The Trustees have examined the major strategic, business, and operational risks the Trust faces which include:

• Service user injury/fatality during a service activity.

• Breach of Child Protection and Vulnerable Adult Procedures/an occurrence of a safeguarding issue.

• Failure to meet the ActiveWestminster strategy and service plan priorities, including capital improvement works.

• Financial performance of the service and failure to maintain/develop income streams.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Paddington Recreation Ground Charitable Trust is an unincorporated charitable trust set up under the Paddington Recreation Ground Act 1893 registered with the Charity Commission. Section 10 of the Act provided for the Vestry of Paddington to maintain and preserve in perpetuity the land acquired for the Vestry for use as a recreation ground open to the public free of charge for admission to any parts thereof and "so that portions of the said ground may be set apart and maintained for the purpose of cricket, football, lawn tennis and cycling or other lawful games and the said Vestry may make reasonable charges for the use of the ground for such purposes".

Trusteeship of the charity is vested in Westminster City Council under the London Government Act 1899. Members of the Council are trustees of the Trust. The last Council-wide election took place on 3 May 2018 and the next is due in May 2022. The names of the members of Westminster City Council at the present time, are listed in the table over the page.

KEY MANAGEMENT PERSONNEL

The Trustees received no remuneration during the year (2020/21 £nil). The Trust does not employ any staff directly.

The Trust confirms that systems have been established to mitigate these risks. These procedures are periodically reviewed to ensure they continue to meet the needs of the Trust. It is recognised that systems can only provide reasonable but not absolute assurances that major risks have been adequately managed.

While the COVID-19 pandemic had very significant effects on the Leisure industry as a whole, Paddington Recreation Ground was less affected as the majority of outdoor facilities continued to be available to the public. Indoor facilities were reopened for the majority of the 2021/22 financial year allowing Paddington Recreation Ground to once again deliver its full offer.

Trustees’ Report (continued)

RELATED PARTIES

None of the Councillors in their role as trustees received any remuneration or expenses during the year (2020/21: £nil). Westminster City Council administers the Trust on behalf of the Trustees but makes no charge for the service.

TRUSTEE TRAINING

In their role as Trustees of the Charity, all Members of the Council are required to attend a comprehensive induction programme covering all aspects of the Council and its services, including charity trusteeship. Bespoke training is also provided for Members for specialist functions and services. Training provided is regularly monitored by the Council’s Standards Committee to ensure its effectiveness.

WARDS	COUNCILLORS	WARDS	COUNCILLORS
Abbey Road	Lindsey Hall	Maida Vale	Geoff Barraclough
	Peter Freeman		Rita Begum
	Judith Warner		Nafsika Butler-Thalassis
Bayswater	Maggie Carman	Marylebone High Street	Iain Bott
	Richard Elcho		Ian Rowley
	Emily Payne		Karen Scarborough
Bryanston and Dorset Square	Barbara Arzymanow	Queen’s Park	Paul Dimoldenberg
	Richard Beddoe		Patricia McAllister
	Eoghain Murphy		Hamza Taouzzale
Church Street	Aicha Less	Regent’s Park	Gotz Mohindra
	Matt Noble		Robert Rigby
	Aziz Toki		Paul Swaddle
Churchill	Murad Gassanly	St James’s	Louise Hyams
	Andrea Mann (Resigned May 21)		Timothy Mitchell
	Liza Begum (Appointed May 21)		Mark Shearer
	Shamim Talukder
Harrow Road	Ruth Bush	Tachbrook	Jim Glen
	Guthrie McKie		Angela Harvey
	Tim Roca		James Spencer
Hyde Park	Heather Acton	Vincent Square	Danny Chalkley
	Ian Adams		David Harvey
	Antonia Cox		Selina Short
Knightsbridge and Belgravia	Anthony Devenish	Warwick	Nickie Aiken
	Elizabeth Hitchcock		Christabel Flight
	Rachael Robathan		Jacqui Wilkinson
Lancaster Gate	Susie Burbridge	Westbourne	David Boothroyd
	Margot Bright		Adam Hug
	Andrew Smith		Papya Qureshi
Little Venice	Melvyn Caplan	West End	Timothy Barnes
	Lorraine Dean		Jonathan Glanz
	Matthew Green		Pancho Lewis

Trustees’ Report (continued)

LOCAL ELECTIONS MAY 2022

As a result of the local elections in May 2022, (Beyond the scope of these accounts), the trustees have had significant changes according to the results. There has also been changes to the wards across the council. The table here reflects these changes going forward.

WARDS	COUNCILLORS	WARDS	COUNCILLORS
Abbey Road	Amanda Langford	Marylebone	Barbara Arzymanow
	Alan Mendoza		Ian Rowley
	Caroline Sargent		Karen Scarborough
Bayswater	Maggie Carman	Pimlico North	Ed Pitt Ford
	James Small-Edwards		Jim Glen
	Max Sullivan		Jacqui Wilkinson
Church Street	Aicha Less	Pimlico South	Liza Begum
	Matt Noble		Robert Eagleton
	Aziz Toki		Jason Williams
Harrow Road	Concia Albert	Queen’s Park	Patricia McAllister
	Ruth Bush		Cara Sanquest
	Tim Roca		Hamza Taouzzale
Hyde Park	Md Shamsed Chowdhury	Regent’s Park	Ralu Oteh-Osoka
	Paul Dimoldenberg		Robert Rigby
	Judith Southern		Paul Swaddle
Knightsbridge and Belgravia	Anthony Devenish	St James’s	Louise Hyams
	Elizabeth Hitchcock		Tim Mitchell
	Rachael Robathan		Mark Shearer
Lancaster Gate	Laila Cunningham	Vincent Square	Gillian Arrindell
	Ryan Jude		David Harvey
	Ellie Ormsby		Selina Short
Little Venice	Melvyn Caplan	Westbourne	David Boothroyd
	Lorraine Dean		Adam Hug
	Sara Hassan		Angela Piddock
Maida Vale	Geoff Barraclough	West End	Paul Fisher
	Nafsika Butler-Thalassis		Patrick Lilley
	Iman Less		Jessica Toale

Trustees’ Report (continued)

FINANCIAL REVIEW

The Trust’s financial position continued to operate with a surplus, £444,172 in 2021/22 (£1,058,393 in 2020/21).

The Trust relies entirely on Westminster City Council for on-going financial support under the terms of the Act establishing the Trust.

Prior to the pandemic the largest item of revenue expenditure was the management fee paid to Sports and Leisure Management Limited (SLM Ltd) for supporting and running Paddington Recreation Ground on behalf of Westminster City Council. The effect of the pandemic on the Leisure industry resulted in that contract being varied such that exposure continued to be shared throughout 2021/22, although initial recovery was better than anticipated and the total expenditure for the year was £12,136 (2020/21 £193,709).

RESERVES POLICY

Reference and administrative details:

Registered Name:	Paddington Recreation Ground Charitable Trust
Registered Charity Number:	295449
Principal Office:	Westminster City Hall, 64 Victoria Street, London, SW1E 6QP
Custodian Trustee:	Westminster City Council
Chief Executive:	Stuart Love (Chief Executive of Westminster City Council)
Solicitor:	Parveen Akhtar, Director of Law, Westminster City Hall, 64 Victoria Street,
	London, SW1E 6QP
Auditor:	Jones Avens Limited, Chartered Accountants, Statutory Auditor, Piper House,
	4 Dukes Court, Bognor Road, Chichester, West Sussex, PO19 8FX

The Trust holds restricted reserves of £712,000 representing the value of the land of the Recreation Ground, and £4,274,054 of unrestricted reserves. The Trust holds no investments nor liquid revenue reserves. Funding from Westminster City Council to the Trust is adjusted during the financial year in line with the projected outturn figures so there is no need for the Trust to hold any revenue reserves or cash.

Statement of Trustees’ responsibilities for the financial statements

The charity trustees are responsible for preparing the Trustees’ Annual Report and financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

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

The law applicable to charities in England and Wales requires the charity trustees to prepare financial statements for each financial year, which give a true and fair view of the Trust and of the incoming resources and application of resources of the Trust for that year. In preparing these financial statements the trustees are required to:

• select suitable accounting policies and apply them consistently;

Approved by the trustees and signed on their behalf by:

Councillor Tim Roca,

Cabinet Member for Young People, Learning & Leisure, Westminster City Council

Date: 09/01/2023

• observe the methods and principles in the Charities SORP;

• make judgements and estimates that are reasonable and prudent;

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

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Trust will continue in operation.

Independent Auditor’s Report to the Trustees of Paddington Recreation Ground Charitable Trust

OPINION

BASIS FOR OPINION

We have audited the financial statements of Paddington Recreation Ground Charitable Trust (the ‘charity’) for the year ended 31 March 2022 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (United Kingdom Generally Accepted Accounting Practice).

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 trustees’ 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 authorised for issue.

In our opinion the financial statements:

• give a true and fair view of the state of the charity’s affairs as at 31 March 2022 and of its incoming resources and application of resources for the year then ended;

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

• 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.

Independent Auditor’s Report to the Trustees of Paddington Recreation Ground Charitable Trust (continued)

OTHER INFORMATION

The other information comprises the information included in the Report and Financial Statements other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the Report and Financial Statements. 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 course of 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 this gives rise to a material misstatement in the financial 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.

MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION

We have nothing to report in respect of the following matters where the Charities (Accounts and Report Regulations) 2008 requires us to report to you if, in our opinion:

• the information given in the financial statements is inconsistent in any material respect with the Trustees’ Report; or

• sufficient accounting records have not been kept; or

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

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

RESPONSIBILITIES OF TRUSTEES

As explained more fully in the Statement of Trustees’ responsibilities set out on page 8, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is 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 trustees 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 trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.

We have nothing to report in this regard.

Independent Auditor’s Report to the Trustees of Paddington Recreation Ground Charitable Trust (continued)

AUDITOR’S RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS

We have been appointed as auditors under section 144 of the Charities Act 2011 and report in accordance with regulations made under section 154 of that Act.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material 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.

IDENTIFICATION AND ASSESSMENT OF IRREGULARITIES INCLUDING FRAUD

the operations of the association, including The Charities Act 2011.

• we obtained an understanding of the legal and regulatory framework applicable to the entity and how the entity is complying with that framework by making appropriate enquiries of management as well as considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations;

• we made enquiries of those charged with governance and management concerning:

• the risks of fraud;

• instances of non-compliance with laws and regulations or knowledge of actual, suspected, or alleged fraud is documented during the period;

• we allocated an engagement team that we considered collectively had the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations.

AUDIT RESPONSE TO THE RISK OF IRREGULARITIES INCLUDING FRAUD

Based on the results of our risk assessment, our procedures included, but were not limited to:

• performing analytical procedures to identify any unusual or unexpected relationships.

• evaluating whether the selection and application of accounting policies by the entity that may be indicative of fraudulent financial reporting resulting from management’s effort to manage earnings.

• assessing whether judgements and assumptions made in determining the accounting estimates set out in note 1H were indicative of potential bias.

• agreeing financial statement disclosures to underlying supporting documentation.

• reading the minutes of meetings of those charged with governance.

• reviewing the correspondence with relevant regulatory bodies.

Irregularities, including fraud, are instances of noncompliance with laws and regulations. We designed procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures were capable of detecting irregularities, including fraud is detailed below:

• testing of journal entries to address the risk of fraud through management override.

• incorporating an element of unpredictability in the selection of the nature, timing, and extent of our audit procedures.

• corroborating the business rationale for transactions outside the normal course of business.

• we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or

CONCLUSIONS REGARDING THE RISKS OF IRREGULARITIES INCLUDING FRAUD

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of noncompliance.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

We considered our audit was capable of detecting irregularities due to:

• the effectiveness of the entity’s internal controls;

• the nature, timing and extent of audit procedures performed; and

• the absence of contradictory evidence.

A further description of our responsibilities for the audit of the financial statements is provided on the Financial Reporting Council’s website at http://www.frc.org.uk/auditorsresponsibilities . This description forms part of our auditor’s report.

USE OF OUR REPORT

This report is made solely to the charity’s trustees 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 trustees 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 trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Jordan Abbott BSc ACA (Senior Statutory Auditor) for and on behalf of: Jones Avens Limited Chartered Accountants and Statutory Auditor Piper House 4 Dukes Court Bognor Road, Chichester, West Sussex PO19 8FX

Date: 11/01/2023

Jones Avens Limited is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006

Statement of Financial Activities

(Including Income and Expenditure Account)

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2022

Notes Unrestricted Funds Restricted Funds	2021/22 Total	Unrestricted Funds	Restricted Funds 2020/21 Total
£ £	£	£	£ £
Income
Charitable activities 2 984,715 -	984,715	1,753,998	- 1,753,998
Total 984,715 -	984,715	1,753,998	- 1,753,998
Expenditure
Charitable activities 3 (540,543) -	(540,543)	(695,605)	- (695,605)
Total (540,543) -	(540,543)	(695,605)	- (695,605)
Net Income 444,172 -	444,172	1,058,393	- 1,058,393
Net movement in funds 444,172 -	444,172	1,058,393	- 1,058,393
Reconciliation of funds
Funds b/f 9 3,829,882 712,000	4,541,882	2,771,489	712,000 3,483,489
Funds c/f 4,274,054 712,000	4,986,054	3,829,882	712,000 4,541,882

All amounts derive from continuing activities. All gains and losses recognised in the year are included in the Statement of Financial Activities.

The notes on pages 17 to 25 form part of these financial statements.

Balance Sheet

CHARITY BALANCE SHEET AS AT 31 MARCH 2022

Notes 31 March 2022	31 March 2021
£	£
Fixed assets
Tangible assets 5 4,954,453	4,548,747
Current Assets
Cash -	-
Debtors 6 31,601	-
Liabilities
Creditors due within oneyear 7 -	(6,865)
Net current Assets/(Liabilities) 31,601	(6,865)
Total assets less current liabilities 4,986,054	4,541,882
Total net assets 4,986,054	4,541,882
The funds of the charity:
Restricted income funds 10 712,000	712,000
Unrestricted income funds 10 4,274,054	3,829,882
Total reserves 4,986,054	4,541,882

The notes on pages 17 to 25 form part of these financial statements.

The financial statements were approved by:

Gerald Almeroth

Executive Director of Finance & Resources Westminster City Council

Responsible Officer

The financial statements were authorised for issue by the Trustees and signed on their behalf, by:

Councillor Tim Roca

Cabinet Member for Young People, Learning and Leisure Westminster City Council

Trustee

Cash Flow Statement

STATEMENT OF CASHFLOWS AT 31 MARCH 2022

		Notes	2021/22	2020/21
			£	£
	Cash flows from operating activities:
	Net cash provided by operating activities	12	810,636	1,271,594
	Cash flows from investing activities:
	Purchase of property, plant and equipment	5	(810,636)	(1,271,594)
	Cash flows from financing activities:		-	-
	Change in cash & cash equivalents in the reporting period		-	-
	Cash & cash equivalents at the beginning of the reporting period		-	-
	Cash and cash equivalents at the end of the reporting period		-	-

The notes on pages 17 to 25 form part of these financial statements.

Note 1 Accounting policies

CHARITY INFORMATION

Paddington Recreation Ground Charitable Trust is a charity registered in England governed by its trust deed “Paddington Recreation Ground Act 1893”. Its Principal address is Westminster City Hall, 64 Victoria Street, London, SW1E 6QP.

The following accounting policies have been applied consistently in dealing with items which are considered material in relation to the Trust’s financial statements.

A) BASIS OF PREPARATION

The financial statements have been prepared under the historical cost convention. The financial statements have been prepared in accordance with the Statement of Recommended Practice (SORP), “Accounting and Reporting by 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, the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.

The financial statements have been prepared to give a “true and fair view” and have departed from the Charities (Accounts and Audit) Regulations 2008 only to the extent required to provide a “true and fair” view. This departure has involved following Accounting and Reporting by Charities preparing their accounts in accordance with Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) effective 1 January 2019 rather than the version of the Statement of Recommended Practice,

which is referred to in the regulation, but which has since been withdrawn.

The financial statements are prepared in sterling, which is the financial currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.

The Trust constitutes a public benefit entity as defined by FRS102.

The Trustees consider that there are no material uncertainties about the Trust’s ability to continue as a going concern. Having reviewed the circumstances of the Trust it is considered that adequate resources are available to fund the activities of the Trust for the foreseeable future.

The Trust relies entirely on the Westminster City Council for ongoing support under the terms of the Paddington Recreation Ground Act 1893.

The Trustees have reviewed the financial conditions of the charity including consideration of any uncertainties arising from the COVID-19 pandemic. Based on this review the Trustees have a reasonable expectation that the Charity has adequate resources to continue in existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.

B) FUNDS STRUCTURE

Restricted funds are funds, which are to be used in accordance with specific restrictions imposed by the donor or trust deed. There is a single restricted fund for the land held in perpetuity under the Act, which established the Trust.

Unrestricted income funds comprise of those funds, which the trustees are free to use for any purpose in furtherance of the charitable objectives.

C) INCOME

All income is recognised in the Statement of Financial Activities when the charity has entitlement to the funds, any performance conditions attached to the items of income have been met, it is probable that the income will be received, and the amount can be measured reliably.

Note 1 Accounting policies (continued)

D) EXPENDITURE

Expenditure is recognised when there is a legal or constructive obligation to make a payment. Direct charitable expenditure includes all expenditure including support costs directly related to the objects of the Trust.

Support costs have been allocated to each charitable expenditure category on the basis of staff utilisation or on an activity basis of total direct expenditure.

Governance costs relate to expenditure incurred in the management of the Trust’s assets, organisation administration and compliance with constitutional and statutory requirements.

There were no Trustee expenses incurred during the year (2020/21– £nil).

E) FINANCIAL INSTRUMENTS

Financial instruments are financial assets such as cash, cash equivalents and debtors, and financial liabilities such as creditors. Financial instruments are recognised when the Trust becomes party to the contractual provisions of the instrument.

F) TANGIBLE FIXED ASSETS

Legal ownership of the land and buildings and other assets at the Paddington Recreation Ground resides with Westminster City Council. The Paddington Recreation Ground Charitable Trust has use of the assets in perpetuity to utilise to carry out its charitable objectives. Accordingly, the Trust has capitalised the assets within its financial statements reflecting the position whereby the Trust holds the risks and rewards of those assets over the whole of their useful economic life.

All tangible fixed assets are accounted for on a depreciated historic cost basis, where a full year of depreciation is charged in the year of acquisition and none in the year of disposal.

Depreciation is charged on a straight-line basis for all assets over the following useful economic lives, as per the valuation inspection undertaken in December 2015:

Land	Not depreciated
Buildings / Improvements	15 years
Outdoor recreational	15 years
installations
Fixtures, fittings and equipment	15 years
Motor vehicles	5 Years

G) CREDITORS

Creditors are recognised where the Trust has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors are normally recognised at their settlement amount after allowing for trade discounts due.

H) JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

The charity makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below.

Useful economic lives of tangible assets

The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. They are amended, when necessary, to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. (See Note 5 for the carrying amount of the property plant and equipment and Note 1f for the useful economic lives for each class of assets).

Note 2 Income from charitable activities

The primary source of income for charitable activities reported is the financial support from Westminster City Council to the Trust for the 2021/22 financial year of £984,715 (£1,753,998 in 2020/21). As a result of the variation to the contract with Sports and Leisure Management Limited following the impact of COVID-19 on the Leisure industry, SLM Ltd made a contribution towards operational costs of £31,601 (2020/21 nil). No other income was received in year (2020/21 nil). The total income represents the cost of operating the Recreation Ground , excluding depreciation, together with the cost of capital investment incurred in the year. Income is unrestricted in nature in both periods.

Note 3 Charitable activities

All expenditure on charitable activities is unrestricted in both periods.

Reconciliation – Costs of Operation and SoFA	Note	2021/22	2020/21
Expenditure on Charitable Activities
		£	£
SoFA – Expenditure on Charitable Activities		540,543	695,605
Cost of operation	3a	463,178	444,094
Management fees	3b	12,136	193,709
Governance costs	3c	65,229	57,802
Total		540,543	695,605

A) COSTS OF OPERATION

A) COSTS OF OPERATION
	2021/22	2020/21
	£	£
Maintenance – Building works	375	11,390
Maintenance – Grounds other	24,176	51,507
Maintenance - Tree works	15,802	27,311
Rents	12,179	13,963
Service charges – Repairs and maintenance	2,900	2,900
Insurance	2,816	1,681
Capital charges – Depreciation	378,361	335,342
Fixed Assets – loss on derecognition	26,569	-
Total	463,178	444,094

B) MANAGEMENT FEES

Support costs of £12,136 were incurred in the year, paid to Sports and Leisure Management Limited. This represents a shared exposure position following variation of the original contract, with better than anticipated recovery following the COVID-19 pandemic.

The contractor’s obligations include the management and delivery of parks, sport, catering and leisure services and associated site security, administration, and bookings. The contractor is also responsible for site marketing and promotion of the facilities and collects and retains all income from users of the facilities.

Note 3 Charitable activities (continued)

C) GOVERNANCE COSTS

Governance costs totalled £65,229 (£57,802 in 2020/21). Apportioned costs of the SL&AC (Sports, Leisure & Physical Activity) Client Team, based on the estimated time that they spent on overseeing the activities of the Trust, account for £24,279 (£31,702 in 2020/21). The role of the Client Team is primarily contract monitoring and management of capital and revenue improvements/maintenance works. The balance of £25,300 (£25,300 in 2020/21) relates to other support costs, mainly from central departments, in overseeing the activities of the Trust. A breakdown of the governance costs is shown below.

D) STAFFING COSTS

The Trustees received no remuneration during the year (2020/21 £nil). The Trust does not employ any staff directly. No Trustee expenses have been incurred during the year (2020/21 £nil).

A breakdown of the governance costs is shown below.
	2021/22	2020/21
	£	£
Client Team – Staff costs	23,993	25,476
Client Team – Other running costs	286	6,226
Audit Fees	15,650	800
Departmental Support – Finance	-	-
Departmental Support – Other	25,300	25,300
Total	65,229	57,802

Note: Westminster City Council have adopted a commissioning model for running the Council. This means that some of the Leisure Team costs are now reported as Departmental support.

The audit fees cost shown above of £15,650 represents the 2021/22 fee for Jones Avens Ltd (£6,150) and the RSM UK Audit LLP 2020/21 fee of £9,500, for the audit of the financial statements, incurred by the end of the financial year (31 March 2022 and 31 March 2021). The £9,500 in audit fees for RSM UK Audit LLP was below Westminster City Council’s de minimis in 2020/21 and was therefore not accrued.

Note 4 Net income for the year

Net income for the year is stated after charging the amounts detailed below.

	2021/22	2020/21
	£	£
Auditor’s remuneration	15,650	800
Depreciation	378,361	335,342
Loss on disposal of assets	26,569	-
Total	420,580	336,142

The audit fees cost shown above of £15,650 represents the 2021/22 fee for Jones Avens Ltd (£6,150) and the RSM UK Audit LLP 2020/21 fee of £9,500, for the audit of the financial statements, incurred by the end of the financial year (31 March 2022 and 31 March 2021). The £9,500 in audit fees for RSM UK Audit LLP was below Westminster City Council’s de minimis in 2020/21 and was therefore not accrued.

Note 5 Fixed assets

	Land	Building Improvements	Motor Vehicles	Outdoor Recreational Installations	Fixtures, Fittings and Equipment	Total
	£	£	£	£	£	£
Cost
Balance b/f at 1 April 2021	2,000,000	6,563,454	10,000	3,232,019	598,130	12,403,603
Additions in the year	-	-	-	658,572	152,064	810,636
Disposals	-	-	-	(37,594)	-	(37,594)
Balance c/f at 31 March 2022	2,000,000	6,563,454	10,000	3,852,997	750,194	13,176,645
Depreciation
Balance b/f at 1 April 2021	(1,288,000)	(5,339,708)	(10,000)	(863,372)	(353,776)	(7,854,856)
Depreciation charge in year	-	(113,000)	-	(231,574)	(33,787)	(378,361)
Disposals	-	-	-	8,497	2,528	11,025
Balance c/f at 31 March 2022	(1,288,000)	(5,452,708)	(10,000)	(1,086,449)	(385,035)	(8,222,192)
Net book value
at 1 April 2021	712,000	1,223,746	-	2,368,647	244,354	4,548,747
at 31 March 2022	712,000	1,110,746	-	2,766,548	365,159	4,954,453

Note 6 Debtors

Note 6Debtors
	2021/22	2020/21
	£	£
Prepayments and Accrued Income	31,601	-
Total	31,601	-

Note 7 Creditors due within one year

	2021/22	2020/21
	£	£
Accruals	0	6,865
Total	0	6,865

Note 8 Capital Commitments

The Trust had no capital commitments at 31 March 2022 (None in 2020/21).

Note 9 Analysis of net assets between funds

				2021/22				2020/21
			Tangible				Tangible
	Creditors	Debtors	Fixed Assets	Total	Creditors	Debtors	Fixed Assets	Total
	£	£	£	£	£	£	£	£
General unrestricted funds	-	31,601	4,242,453	4,274,054	(6,865)	-	3,836,747	3,829,882
Restricted funds	-	-	712,000	712,000	-	-	712,000	712,000
Net assets	-	31,601	4,954,453	4,986,054	(6,865)	-	4,548,747	4,541,882

Note 10 Movement in funds

2021/22	Fund at 1 April 2021	Income	Expenditure	Fund at 31 March 2022
	£	£	£	£
Unrestricted funds - General Fund	3,829,882	984,715	(540,543)	4,274,054
Restricted funds	712,000	-	-	712,000
Total Charity funds	4,541,882	984,715	(540,543)	4,986,054
2020/21	Fund at 1 April 2020	Income	Expenditure	Fund at 31 March 2021
	£	£	£	£
Unrestricted funds - General Fund	2,771,489	1,753,998	(695,605)	3,829,882
Restricted funds	712,000	-	-	712,000
Total Charity funds	3,483,489	1,753,998	(695,605)	4,541,882

Restricted funds represent the value of the land vested with the charity under the founding Act.

Note 11 Ultimate controlling party and related party transactions

Westminster City Council members are the Trustees and are deemed the ultimate controlling party of the charity. Income from the Council is disclosed in Note 2 and expenditure from the Council is disclosed in Note 3. There are no further related party transactions to disclose.

Note 12 Reconciliation of net movement in funds to net cashflow from operating activities

	Notes	2021/22	2020/21
		£	£
Net income		444,172	1,058,393
Adjustments for:
Depreciation charges	5	378,361	335,342
(Decrease) in creditors	7	(6,865)	(123,703)
Decrease/ (Increase) in debtors	6	(31,601)	1,562
Loss on Disposal of Assets		26,569	-
Net cash provided by operating activities		810,636	1,271,594

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