LOWER CENTRAL GARDENS BOURNEMOUTH ANNUAL REPORT AND STATEMENT OF ACCOUNTS YEAR ENDED 31 MARCH 2022 Charity number 299739 |**LOWER CENTRAL GARDENS**|**BOURNEMOUTH**| |---|---| ||**CONTENTS**| ||Page| |Trustee Report|3 to 7| |Independent Auditor's Report|8 to 10| |Statement of Financial Activities (incorporating Income and Expenditure Account)|11| |Balance Sheet|12| |Notes to the Accounts|13 to 17| **LOWER CENTRAL GARDENS BOURNEMOUTH TRUSTEE REPORT YEAR ENDED 31 MARCH 2022** The trustee is pleased to present its report together with the financial statements of the charity for the year ending 31st March 2022. ## **Reference and administrative details** Registered name: Lower Central Gardens Bournemouth Charity number: 299739 Principal Office: Town Hall, Bourne Avenue, Bournemouth, BH2 6DY Trustee: Bournemouth, Christchurch & Poole Council (BCP Council) (Cabinet members see BCP Council – Democracy Councillor Lawrence Williams Councillor Simon Bull Councillor Mike Greene Councillor Mark Howell (resigned 6 June 2021) Councillor Andy Hadley (resigned 21 June 2021) Councillor Stephen Bartlett (resigned 21 June, re-appointed 8 November 2022) Councillor Vicky Slade (appointed 21 June 2021) Mr Bernard Uzzell (resigned 8 September 2021) Mr Roger Boon Chief Executive Officer: Ian Poultney (Michael Rowland left BCP Council August 2021) Auditor: Hixsons, 24 Cecil Avenue, Bournemouth, BH8 9EJ ## **Structure, Governance and Management** The accounts recognise the treatment of the Charity as a separate entity with its own transactions distinct from those of BCP Council. ## Governing Document The Trust was created in 1873 under an Indenture between BCP Council's predecessor body the Bournemouth Commissioners and Sir George Eliot Meyrick Tapps Gervis. The day to day control and management of the Lower Central Gardens and hence the charity, was varied by s.29 Bournemouth Borough Council Act 1985. This vested in the Council the general power to use, control and manage the Lower Central Gardens. ## Governance BCP Council manages the Charity in its role as trustee. Recommendations from the Council Cabinet on Charity issues are referred to full meetings of the Council acting as trustee for appropriate decisions. There is a separate Charity Board. The composition and remit of the board has been made consistent with the requirements identified in the Maidment tribunal case that addressed a similar open space known as Dartford Central Park. The board of the Trustee meets periodically and receives reports from operational staff and determines strategy and policy for the Charity. Operational decisions on day to day management of the Charity are the responsibility of the Environment Service Director and Service Managers. Page 3 **LOWER CENTRAL GARDENS BOURNEMOUTH TRUSTEE REPORT YEAR ENDED 31 MARCH 2022** Charity related items are clearly separated and identified in all reports and papers. A clear distinction is drawn between the Council acting in its role as local authority and in its role of trustee of the Lower Central Gardens Trust. The trustee has considered the risks that the charity is exposed to but do not deem there to be any significant risk arising from its activities. The Charity's main relationship is with BCP Council who delivers all maintenance and management services to the Charity. The Council also operates a plant nursery in King’s Park, which supplies flowers to the Lower Central Gardens Trust at commercial rates (the Nursery is within the Five Parks Trust land). ## **Recruitment and appointment of new trustees** The trustee recruitment process is carried out by existing trustees on behalf of Members of the Trust. The trustee vacancy is advertised in the local media and interested parties are then provided with: - a. Briefing Note - b. Application Form - c. Draft Scheme of Management - d. Master Plan drawing - e. Lower Gardens summary. The applicants are then interviewed and appointed using the Charity Commission Operational Guidance, Trustee Act 2000, OG 86 B4 ‘Power to employ nominees and custodians’. On the appointment the trustees are provided with a copy of the Charity Scheme for the new Trust together with the rules for conflicts of interest. There are no formal policies or procedures adopted for the induction and training of trustees. ## **Objectives and Activities** The object of the charity is the provision of open space for the recreation and enjoyment of the public. During the year it is estimated that over 3.5 million people visited the gardens and used its facilities. The Gardens are Listed Grade II in the Historic England "Register of Parks and Gardens". The Charity is subject to several strategies that design the way that objectives are being fulfilled. The main document is Lower, Central & Upper Gardens 5-year Management Plan which was drafted in conjunction with: - Bournemouth 2026 Community Strategy - Green Space Strategy - Playground Strategy - Nature Conservation Strategy Page 4 **LOWER CENTRAL GARDENS BOURNEMOUTH TRUSTEE REPORT YEAR ENDED 31 MARCH 2022** The Management Plan and Lower Gardens Masterplan are providing details of proposals to improve the visitors' experience in the Gardens. The examples of these are: - to review planting and phase replacement with new water tolerant planting - to refine and improve Christmas events in Lower Gardens to ensure smooth running - 4-year plan to renovate all the shrubs/tree boarders along Westover Road - to develop Westover Gardens as an area for the arts and other community events. ## **Background and Context** The Lower Gardens are Bournemouth's first and most famous public park, they retain much of their original Victorian character and are Listed Grade II. The Lower Central Gardens are renowned for their floral bedding displays throughout the year, which are designed to bring together brilliant colours, subtle textures, height variations and scent. The gardens have the Pine Walk area noted for the aroma of the pine trees and it also has one of the largest municipal rock gardens in the country. The Pavilion was first opened as a concert hall with reading rooms and cafes, was later enlarged to become a theatre and has undergone numerous alterations and enlargements. It was Grade II listed in 1998. ## **Current Activities and Performance** Events within the Lower Gardens have returned to normal - the highlights were the Air Festival (August 2021), the Bournemouth Marathon (October 2021), the Arts By The Sea Festival (September 2021) and winter ice rink and Christmas Tree Wonderland (November 2021 - January 2022.) During the pandemic grounds maintenance was impacted by the Council re-prioritising work towards the welfare and needs of residents, the knock-on effect was that the gardens’ did not enter the South and South East England In Bloom competition. The Gardens did however retain their Green Flag Status once again, which they have held since 1999. ## **Financial Review** Historically the Council, in its role as local authority and corporate trustee, has provided donated services each year sufficient for the charity to achieve breakeven and meet any liabilities as they fall due. This is currently the policy that is expected to continue and so the accounts have been prepared on a going concern basis. The trustee considers that there are no material uncertainties about the charity's ability to continue as a going concern. The restricted income fund of **£2,568,449** represents change in the fixed assets value and is not used for distribution. The endowment fund of **£18,510,002** is held on trust to be retained for the benefit of the charity as a capital fund. The trustee must permanently maintain the whole of the fund. The fund consists of assets that are used for the purposes of the charity and cannot be spent as if it were income. The net revenue expenditure supports the objective of the Trust. The Charity holds an unrestricted income fund of **£2,961** is the value of the donated stock. Page 5 **LOWER CENTRAL GARDENS BOURNEMOUTH TRUSTEE REPORT YEAR ENDED 31 MARCH 2022** ## **Plans for Future Periods** Maintaining and improving the public's access to the Charity's land for use as pleasure gardens will continue to be the main focus in the years ahead. ## **Public Benefit** The Trustee have taken the Charity Commission's guidance on public benefit into consideration. The Lower Central Gardens are provided for the enjoyment of the public without charge and there continues to be investment in and improvements to the main pleasure garden infrastructure. Furthermore, a series of events have been held that were designed to have broad appeal to the public - both local and visitors alike. ## **Responsibilities of the trustee** The law requires the trustee 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 its net movement in funds for that period. The charity trustee is responsible for preparing a trustee annual report and financial statements in accordance with applicable law and United Kingdom accounting standards (United Kingdom generally accepted accounting practice). In preparing those financial statements, the trustee is required to: - a. select suitable accounting policies and then apply them consistently; - b. observe the methods and principles in the Charities SORP; - c. make judgements and estimates that are reasonable and prudent; - d. state whether applicable UK accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements and - e. prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation. The trustee is 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 requirements of the Charities Act 2016. 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. ## **Disclosure of Information to Auditor** Each of the persons who are a trustee at the time when this Trustee Report is approved has confirmed that: - so far as that trustee is aware, there is no relevant audit information of which the trust's auditor is unaware, and - the trustee has taken all the steps that ought to have been taken as a trustee in order to make them aware of any relevant audit information and to establish that the Charity's auditor is aware of that information. Page 6 **LOWER CENTRAL GARDENS BOURNEMOUTH TRUSTEE REPORT YEAR ENDED 31 MARCH 2022** By Order of the Trustee Signed Name Cllr D Mellor on behalf of trustee Date 30 January 2023 Page 7 ## **LOWER CENTRAL GARDENS BOURNEMOUTH INDEPENDENT AUDITOR'S REPORT YEAR ENDED 31 MARCH 2022** ## **Independent auditor's report to the Trustee of the Lower Central Gardens Bournemouth** ## **Opinion** We have audited the financial statements of Lower Central Gardens Bournemouth (the ‘charity’) for the year ended 31 March 2022 which comprise the Annual Report and Statement of Accounts 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 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 2022, and of its incoming resources and application of resources, including its income and expenditure, for the year 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 trustee’s 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. Our responsibilities and the responsibilities of the trustee with respect to going concern are described in the relevant sections of this report. ## **Other information** The other information comprises the information included in the trustee’s annual report, other than the financial statements and our auditor’s report thereon. The trustee is responsible for the other information contained within the annual report. 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. We have nothing to report in this regard. ## **Matters on which we are required to report by exception** 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: - the information given in the financial statements is inconsistent in any material respect with the trustee’s report; or - the charity has not kept adequate accounting records; 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. Page 8 **LOWER CENTRAL GARDENS BOURNEMOUTH INDEPENDENT AUDITOR'S REPORT YEAR ENDED 31 MARCH 2022** ## **Independent auditor's report to the Trustee of the Lower Central Gardens Bournemouth (cont'd)** ## **Responsibilities of trustee** As explained more fully in the trustee’s responsibilities statement set out on page 6 the trustee is 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 trustee determines 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 trustee is 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 trustee either intends 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** We have been appointed as auditor 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. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of noncompliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also: - Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the charity’s internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the trustee. - Conclude on the appropriateness of the trustee’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the charity’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the charity to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation (ie. gives a true and fair view). Page 9 **LOWER CENTRAL GARDENS BOURNEMOUTH INDEPENDENT AUDITOR'S REPORT YEAR ENDED 31 MARCH 2022** ## **Independent auditor's report to the Trustee of the Lower Central Gardens Bournemouth (cont'd)** We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. ## **Use of our report** This report is made solely to the charity’s trustee, 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 trustee 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 trustee, for our audit work, for this report, or for the opinions we have formed. Hixsons (Statutory Auditor) 24 Cecil Avenue Bournemouth BH8 9EJ 30 January 2023 Hixsons is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006. Page 10 ## **LOWER CENTRAL GARDENS BOURNEMOUTH STATEMENT OF FINANCIAL ACTIVITIES YEAR ENDED 31 MARCH 2022** |Note
**Income and endowments from:**
Donations
Donated services received
Activities for generating funds:
Commercial trading operations
2.
Recreational activity income
3.
**Total income and endowments**
**Expenditure on:**
_Raising funds_
Commercial trading operations
_Charitable activities_
4.
Maintenance of gardens and public
buildings
Costs of providing recreational
activities
Governance cost
Depreciation
5.
**Total expenditure**
**Net movement in funds**
Total funds brought forward
Gains on Revaluation
10.
Transfer to/(from) Unrestricted income fund
8.
**Total funds carried forward**
8. /9. /10.|Year to 31st March 2022
Year to 31st March 2021| |---|---| ||£
£
£
£
£
£
Unrestricted
income fund
Restricted
Income fund
Endowment
fund
Total funds
Unrestricted
income fund
Restricted
Income fund
Endowment
fund
Total funds
366,333
94,339
-
460,671
252,255
129,043
-
381,297
531,083
-
-
531,083
200,661
-
-
200,661| ||897,415
94,339
-
991,754
452,916
129,043
-
581,959
247,189
-
-
247,189
129,786
-
-
129,786| ||1,144,604
94,339
-
1,238,943
582,702
129,043
-
711,745| ||206,963
-
-
206,963
111,400
-
-
111,400| ||206,963
-
-
206,963
111,400
-
-
111,400
361,379
94,339
-
455,718
355,616
129,043
-
484,659
569,308
-
-
569,308
103,686
-
-
103,686
6,500
-
-
6,500
12,000
-
-
12,000| ||937,188
94,339
-
1,031,526
471,303
129,043
-
600,346
-
20,391
403,253
423,644
-
21,130
407,459
428,589| ||1,144,150
114,729
403,253
1,662,133
582,702
150,173
407,459
1,140,335| ||454
(20,391)
(403,253)
(423,190)
-
(21,130)
(407,459)
(428,589)
2,507
2,370,002
14,835,237
17,207,746
8,275
2,352,499
16,600,002
18,960,776
-
218,838
4,078,018
4,296,856
-
38,633
(1,357,306)
1,318,673
-
-
-
-
0
(5,769)
-
-
5,769
-| ||2,961
2,568,449
18,510,002
21,081,412
2,507
2,370,002
14,835,237
17,207,746| All of the activities are derived from the continuing operations of the charity. Page 11 **LOWER CENTRAL GARDENS BOURNEMOUTH BALANCE SHEET YEAR ENDED 31 MARCH 2022** |**Fixed Assets**
Tangible Assets
Stock
Cash held on behalf of trust
Creditors
**Net Assets**
**Funds of the charity**
Unrestricted income fund
Endowment fund
Restricted Income fund
**Total charity funds**|Note
5.
6.
7.
8.
9.
10.|As at 31st March
2022
£
21,078,451
2,961
13,894
(13,894)
21,081,412
2,961
18,510,002
2,568,449
21,081,412|As at 31st March| |---|---|---|---| ||||2021
£
17,205,239
2,507
0
0| ||||17,207,746| ||||2,507
14,835,237
2,370,002| ||||17,207,746| Signed Name Cllr D Mellor Date 30 January 2023 on behalf of trustee Page 12 **LOWER CENTRAL GARDENS BOURNEMOUTH NOTES TO THE ACCOUNTS YEAR ENDED 31 MARCH 2022** ## **1. Statement of Accounting Policies** ## **a. Basis of accounting** The accounts (financial statements) have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant note(s) to these accounts. The financial statements have been prepared in accordance with 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) - (Charities SORP (FRS 102)), the Financial Reporting standard applicable in the UK and Republic of Ireland (FRS 102). Section 1A of FRS 102 has been applied and no Statement of Cashflows has been prepared. The Lower Central Gardens Bournemouth's corporate trustee includes the charity in its consolidated financial statements. The consolidated financial statements are prepared under the International Financial Reporting Standards and are available to the public at: https://www.bcpcouncil.gov.uk/About-the-council/Budgets-and-finance/Annual-accounts.aspx In these financial statements the Lower Central Gardens Bournemouth is considered to be a qualifying entity (for the purpose of this FRS) and has applied exemptions available under FRS 102 in respect of the requirement to present a cashflow statement. Having given regard to Public Benefit Entity guidance the corporate trustee considers the Lower Central Gardens Bournemouth to be a Public Benefit Entity. ## **Going Concern** Historically the Council, in its role as local authority and corporate trustee, has provided donated services each year sufficient for the charity to achieve breakeven and meet any liabilities as they fall due. This is currently the polic that is expected to continue and so the accounts have been prepared on a going concern basis. The trustee considers that there are no material uncertainties about the Charity's ability to continue as a going concern. As of 1st April 2019 the Council became part of a new authority Bournemouth, Christchurch & Poole Council (BCP) and the policy of donation has passed to the new authority. This is enshrined in the following two UK Statutory Instruments: - 2018 No. 648 The Bournemouth, Dorset and Poole (Structural Changes) Order 2018 - 2008 No. 2176 The Local Government (Structural Changes)(Transfer of Functions, Property, Rights and Liabilities) Regulations 2008. ## **b. Income recognition** Donations and legacies in the form of Donated Services received is recognised in the year that the matching unfunded element of expenditure is incurred. The policy of BCP Council as been to subsidise the charity to the extent each year of its income shortfall. Whilst this arrangement is likely to continue for the foreseeable future there is no contractual necessity for the Council to provide the subsidy through Donated Services other than the basic maintenance of the pleasure gardens. However, the Council makes no additional payment for its use of the Pavilion building currently on Charity land. The provision of Donated Services is therefore partly a rental payment in kind. Income from commercial trading activities and recreational activities is recognised at point of sale. ## **c. Expenditure recognition** Raising funds - there are no directly attributable costs to the income from the concessions element of commercial trading operations. However the Council invests time and resources in negotiating and arranging the concessions. An estimate of the value of this service is reflected in the statement of financial activities on an accrual basis. Costs associated with the Council run café provision are included here. Charitable activities - Maintenance includes the direct costs of maintaining the pavilion infrastructure, the gardens infrastructure, the cost of the Council staff and the machinery utilised in the landscaping, gardening and horticulture. It also includes the costs of maintaining and running public conveniences. The costs of recreational activities includes the mini-golf and those incurred staging various public events. Governance costs – these comprise all costs involving the public accountability of the charity and its compliance with regulation and good practice. These costs include those related to preparing statutory accounts, the statutory audit, legal fees and costs of committee meetings. All of these are met by the Council. Page 13 **LOWER CENTRAL GARDENS BOURNEMOUTH NOTES TO THE ACCOUNTS YEAR ENDED 31 MARCH 2022** ## **d. Tangible fixed assets** The asset valuations policy treats amounts of less than £1,000 as revenue expenditure and so they are charged to the accounts in the year of expenditure. Assets are depreciated on a straight line basis over their estimated useful lives as follows: - Freehold buildings - Pavilion, lower gardens bandstand Freehold buildings - lower gardens minor buildings, certain improvements to main buildings 50 years 10 - 25 years Assets are assessed at each year-end (in 2022 this was by the external company Norse Group whose employees are accredited by the Royal Institute of Chartered Surveyors (RICS) as to whether there is any indication that they may be impaired. Where indications exist and any possible differences are estimated to be material, the recoverable amount of the asset is estimated and any shortfall is recognised as an impairment loss. Impairment losses are accounted for in the following ways: - where there is a balance of revaluation gains for the asset in the Restricted Income fund the carrying amount of the asset is written down against that balance, up to the amount of the accumulated gains; - where there is no balance in the Restricted Income fund or an insufficient balance the carrying amount of the asset is written down against the expenditure in the Statement of Financial Activities. Where an impairment loss is subsequently reversed the reversal is credited to the SoFA up to the amount of the original loss, adjusted for depreciation that would have been charged if the loss had not been recognised. ## **e. Cash held on behalf of trust** Cash at bank is equal and opposite to the sum of the creditors. The charity does not have its own bank account, all receipts are paid into and all payments paid from the BCP Council's main bank account. ## **f. Creditors** Creditors are recognised where the charity 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. ## **g. Funds structure** The charity has a single unrestricted income fund that comprises those funds which the trustee is free to use for any purpose in furtherance of the charitable objects. The endowment fund represents the pavilion asset that was donated to the Charity and is held on trust to be retained for the benefit of the Charity as a capital fund. The fund cannot be spent as if it was income. The restricted income fund represents total valuations, the cost of any subsequent routine fixed asset additions, any revaluations and any disposals of assets. These assets exclude the pavilion asset. ## **h. Leases** Where the Charity grants an operating lease over an item of property, plant or equipment the asset is retained in the Balance Sheet. Rental income is credited to Commercial Operations line under Activities for Generating Funds in the Statement of Financial Activities. There are no finance leases where the Charity is the lessee or lessor. ## **i. Revaluation gains or losses** Any revaluation gains or losses are adjusted through the Statement of Financial Activities and are held in the endowment fund if it is in relation to the pavilion otherwise it is held in the restricted income fund. ## **2. Analysis of Commercial Trading Operations** Various food concessions have been let to operate attractions in the Lower Gardens. The income from these concessions is treated as earned by the Charity. Some of the cost of the Christmas Tree Wonderland was covered by income from Bournemouth BID's (Business Improvement Districts), the Council & sponsors. |Refreshments & concessions
Commemorative benches & bandstand
Ice rink costs reimbursement
Arts by the Sea
Christmas Tree Wonderland
**3. Analysis of charitable activities**
Mini-Golf
Art Exhibition|£
£
2021-22
2020-21
270,446
171,281
0
0
23,142
0
10,754
29,380
226,740
0|£
2020-21| |---|---|---| ||531,083
200,661|| ||£
£
2021-22
2020-21
242,966
127,680
4,223
2,106|£
2020-21| ||247,189
129,786|| Page 14 ||**LOWE**|**R CENTRA**
**Y**|**L GARDENS BOURN**
**NOTES TO THE A**
**EAR ENDED 31 MA**|**EMOUTH**
**CCOUNTS**
**RCH 2022**| |---|---|---|---|---| ||**4. Analysis of Expenditure on raising funds**
Maintenance of gardens and public buildings
Direct costs - maintenance and repairs
Maintenance team
Public conveniences
Assets Maintenance|£
£
2021-22
2020-21
13,144
17,275
336,113
321,179
12,122
17,162
94,339
129,043||£
2020-21| |||455,718
484,659||| The maintenance staff are employed by the Council rather than directly by the Charity and only the proportion of cost relating to the Lower Gardens is recharged. This arrangement is in place as this is considered the most cost effective way for maintenance of the Lower Gardens to be carried out. 'The actual cost is based on the timesheets records and estimates where the timesheets are not available. |records and estimates where the timesheets are not available.||| |---|---|---| |Costs of providing recreational activities
Events
Art Exhibition
Bandstand
Arts by the Sea
Christmas Tree Wonderland
Festival Coast Live
Ice Rink
Events Team
Mini-Golf|£
2021-22
3,145
2,078
23,107
360,800
93,845
25,130
20,398|£
2020-21| |||2,527
754
54,650
0
0
0
18,489| ||528,503
40,806|76,421
27,265| ||569,308
103,686|| Governance costs incurred are met by BCP Council. Included within these costs are audit fees of £6,500 (2020-21 : £12,000) excluding VAT. |Governance costs
**5. Tangible fixed assets**
**2020-21**
Asset valuation brought forward
Revaluation (net)
Depreciation charge for year
Net book value carried forward
**2021-22**
Asset valuation brought forward
Revaluation (net)
Depreciation charge for year
Net book value carried forward||£
2021-22
6,500
Pavilion
Gardens
£
£
Freehold land and buildings|£
2021-22
6,500
Pavilion
Gardens
£
£
Freehold land and buildings|£
2020-21| |---|---|---|---|---| |||||12,000
Total
£| ||||Pavilion
£
|| |||16,600,002
2,352,499
18,952,501||| |||(1,357,306)
38,633
(1,318,673)
(407,459)
(21,130)
(428,589)||| |||14,835,237
2,370,002
17,205,239||| |||||| |||14,835,237
2,370,002
17,205,239||| |||4,078,018
218,838
4,296,856
(403,253)
(20,391)
(423,644)||| |||18,510,002
2,568,449
21,078,451||| Historically, under an Indenture drawn up in 1873 a trust was created and this was formally registered with the Charity Commissioners. The effect of the Indenture was to transfer substantially all the risks and rewards of ownership to the Charity and the Council. The assets of the Charity are treated as comprising the freehold interest (based on the Council as trustee's right to manage) in the land between Bournemouth Square and the seafront laid out as formal public pleasure gardens. The area is approximately six hectares. Furthermore it comprises the Charity's ownership of the Pavilion. Page 15 **LOWER CENTRAL GARDENS BOURNEMOUTH NOTES TO THE ACCOUNTS YEAR ENDED 31 MARCH 2022** ## Valuation The Charity accounts for its unencumbered share of the assets using the same approach to valuation as adopted by the Council's Property Services department when preparing valuations for the Council. The trustee consider this to be a fair, cost effective and pragmatic basis. In 2022 the valuations were undertaken by the external company Norse Group whose employees are accredited by the Royal Institute of Chartered Surveyors (RICS) so are considered to be independent of the Charity. The following approaches to valuation have been adopted: - Assets included in the Balance Sheet are re-valued annually. Pavilion - at the end of 2009-10 the land swap took place giving the Charity full ownership of the building. The value of the asset in the Balance Sheet is based on the full amount of the depreciated replacement cost and is subject to a full depreciation charge. The Pavilion is leased to BCP Council who under the agreement have sub-leased it to BH Live. Both leases are for nil consideration. Lower Central Gardens - a full share of the existing use valuation based on the concessions. The land now occupied by concessions is carried at nil value. The trustee recognises that there is an intrinsic value to the rest of the gardens but as there is no likelihood of a full or major disposal and because of the costs and difficulty in obtaining a valuation this is carried at £ nil. |**6. Stock**
Balance brought forward
Movement during the year
Balance carried forward
**7. Creditors: Amounts falling due within one year**
Creditors
**8. Unrestricted Income fund**
Balance brought forward
Movement during the year
Balance carried forward
The unrestricted income fund is the value of the stock held.
**9. Endowment fund**
Balance brought forward
Revaluations
Net movement in funds
Balance carried forward||£
2021-22
2,507
454|£
2020-21| |---|---|---|---| ||||8,275
(5,769)| |||2,961|2,507| |||£
2021-22|£
2020-21| ||||| |||(13,894)|0| |||£
2021-22
2,507
454|£
2020-21| ||||8,275
(5,769)| |||2,961|2,507| ||£
£
2021-22
2020-21
14,835,237
16,600,002
4,078,018
(1,357,306)
(403,253)
(407,459)||£
2020-21| ||18,510,002
14,835,237||| As mentioned in Note 6 above the Pavilion became fully owned by the Charity in 2009-10 and was reflected that year in the accounts as a donated asset and the endowment fund. This reserve is in the nature of an endowment i.e. it may not be spent as income nor disposed of. Page 16 ||**LOWE**|**R CENTRA**
**Y**|**L GARDENS BOURN**
**NOTES TO THE A**
**EAR ENDED 31 MA**|**EMOUTH**
**CCOUNTS**
**RCH 2022**| |---|---|---|---|---| ||**10. Restricted Income fund**
Balance brought forward
Revaluations
Net movement in funds
Balance carried forward|£
£
2021-22
2020-21
2,370,002
2,352,499
218,838
38,633
(20,391)
(21,130)||£
2020-21| |||2,568,449
2,370,002||| The full amount of total valuations and the cost of any subsequent routine fixed asset additions is credited to the restricted income fund as these assets can only be used for specific purposes. Any revaluations or disposals of assets within these sums is also adjusted through the reserve. To the extent that the carrying amount of the depreciated assets is reflected in the restricted income fund the relevant amount of the depreciation charge in the statement of financial activities is transferred as a reserves adjustment to the general fund. ## **11. Analysis of net assets between funds** **Analysis of net assets between funds - current year** ||**Unrestricted**|**Restricted**|
**Endowment funds**|| |---|---|---|---|---| ||**funds £**|**funds £**|**£**|**Total funds £**| |Tangible Fixed Assets|0|2,568,449|18,510,002|21,078,451| |Current assets|2,961|0|0|2,961| ||**2,961**|**2,568,449**|**18,510,002**|**21,081,412**| |**Analysis of net assets between funds - prior year**||||| ||**Unrestricted**|**Restricted**|
**Endowment funds**|| ||**funds £**|**funds £**|**£**|**Total funds £**| |Tangible Fixed Assets|0|2,370,002|14,835,237|17,205,239| |Current assets|2,507|0|0|2,507| ||**2,507**|**2,370,002**|**14,835,237**|**17,207,746**| ## **12. Related party transactions** The Lower Central Gardens Bournemouth's corporate trustee includes the charity in its consolidated financial statements. The consolidated financial statements are prepared under International Financial Reporting Standards and are available to the public at https://www.bcpcouncil.gov.uk/About-the-council/Budgets-and-finance/Documents/annual-accounts/draft-statement-of-accounts-2021-to In these financial statements the Lower Central Gardens Bournemouth is considered to be a qualifying entity (for the purpose of this FRS) and has applied the exemptions available under FRS 102 in respect of the requirement to present a cashflow statement. Having given regard to Public Benefit Entity guidance the corporate trustee considers the Lower Central Gardens Bournemouth to be a Public Benefit Entity. The Council acting in its role as trustee of the charitable trust nominates certain Members to act as members of the Trust Board. The Trust Board has a Constitution setting out administration and management arrangements of the trust. The charity trustee was not paid or reimbursed expenses during the year and did not receive any emolument or payment for professional or other services. There were no transactions involving the trustee and related parties and there were no ex-gratia payments. As disclosed in the analysis of resources expended, the Council provides staff who maintain the gardens - there are no staff employed by the charity. The Council has historically subsidised the annual deficits of the Charity. |Donated services received
Income & expenditure from activities - Unrestricted Income fund
Assets Maintenance - Restricted Income fund
BCP Council in its role as local authority|£
£
2021-22
2020-21
366,333
252,255
94,339
129,043|£
2020-21| |---|---|---| ||460,671
381,297|| Page 17