## Hampstead Heath
Annual Report and Consolidated Financial Statements for the year ended 31 March 2021
Charity registration number 803392
## **CONTENTS**
Origins of the charity ............................................................................................... 1 Structure and governance ....................................................................................... 2 Achievements and performance ............................................................................. 7 Financial review .................................................................................................... 10 Trustee responsibilities ......................................................................................... 16 Independent auditor’s report ................................................................................. 18 Consolidated statement of financial activities........................................................ 22 Consolidated balance sheet .................................................................................. 23 Balance sheet ....................................................................................................... 24 Notes to the financial statements .......................................................................... 25 Reference and administration details .................................................................... 42
Hampstead Heath | Annual Report and Consolidated Financial Statements 2020/21
## **ORIGINS OF THE CHARITY**
Hampstead Heath is the collective name for Parliament Hill and Golders Hill, a total of 791 acres (320 hectares). The original Hampstead Heath was the former lands owned by the Lord of the Manor acquired under the Hampstead Heath Act, 1871. The Heath falls within two London Boroughs, Camden and Barnet.
The Heath was transferred to the London Residuary Body on 1st April 1986 on the abolition of the Greater London Council and was transferred to the City of London Corporation on 31 March 1989 under provisions of the London Government Reorganisation (Hampstead Heath) Order 1989. This Order covered the transfer of the Heath and the related rights and liabilities, the functions of the Corporation, the financial arrangements, the establishment of the Hampstead Heath Trust Fund for future revenue funding and the Hampstead Heath Works Fund for defraying capital works. It also set up a Hampstead Heath Management Committee for the purposes of advising on and implementing the City of London Corporation's policies and programmes of work and considering any representations from the statutory Consultative Committee. The Consultative Committee was established to make such representations and consists of representatives of local organisations, sporting interests, nature conservation, the disabled and those concerned with the Heath.
The City of London Corporation is committed to conserving the Heath and its wildlife and vegetation and provide recreational facilities for the public appropriate to such an important London open space.
The first detailed management plan for Hampstead Heath was produced in 1995. The plan sets out a framework and policies for the management of the Heath, by identifying management objectives, describing how these are to be achieved and defining procedures for monitoring progress against these objectives. A wide range of public consultation has taken place in order to develop a Vision which provides strategic direction for the site for 2018/28.
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Hampstead Heath | Annual Report and Consolidated Financial Statements 2020/21
## **TRUSTEE’S ANNUAL REPORT STRUCTURE AND GOVERNANCE**
## **GOVERNING DOCUMENTS**
The governing documents are the Hampstead Heath Act 1871 and the London Government Reorganisation (Hampstead Heath) Order 1989. The charity is constituted as a charitable trust.
## **GOVERNANCE ARRANGEMENTS**
The Mayor and Commonalty and Citizens of the City of London (also referred to as ‘the City Corporation’ or ‘the City of London Corporation’), a body corporate and politic, is the trustee of Hampstead Heath. The City Corporation is trustee acting by the Court of Common Council of the City of London in its general corporate capacity and that executive body has delegated responsibility in respect of the administration and management of this charity to various committees and sub-committees of the Common Council, membership of which is drawn from 125 elected Members of the Common Council and external appointees to those committees. In making appointments to committees, the Court of Common Council will take into consideration any particular expertise and knowledge of the elected Members, and where relevant, external appointees. External appointments are made after due advertisement and rigorous selection to fill gaps in skills. Elected Aldermen and members of the City of London Corporation are appointed to the Hampstead Heath, Highgate Wood and Queen’s Park Committee, together with six non City of London Corporation members, one after consultation with the London Borough of Barnet, one after consultation with the London Borough of Camden, one after consultation with the owners of the Kenwood lands and three after consultation with bodies representing local, archaeological, environmental or sporting interests governing Hampstead Heath by the Court of Common Council of the City of London Corporation. The Finance Committee of the City of London Corporation administers the Hampstead Heath Trust Fund on behalf of the Trustee.
Members of the Court of Common Council are unpaid and are elected by the electorate of the City of London. The Key Committees which had responsibility for directly managing matters related to the charity during 2020/21 were as follows:
- **Policy and Resources Committee –** responsible for allocating resources and administering the charity.
- **Finance Committee –** responsible for controlling budgets, support costs and other central charges that affect the charity as a whole.
- **Audit and Risk Management Committee –** responsible for overseeing systems of internal control and making recommendations to the Finance Committee relating to the approval of the Annual Report and Financial Statements of the charity.
- **Investment Committee** – responsible for the strategic oversight and monitoring of the performance of the charity’s investments which are managed
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Hampstead Heath | Annual Report and Consolidated Financial Statements 2020/21
by three separate sub-committees, namely the Financial Investment Board, the Property Investment Board and the Social Investment Board.
- **Financial Investment Board** - oversees all aspects of the non-property investment arrangements of the City of London’s major funds and monitors the Chamberlain’s Treasury Management operations.
- **Hampstead Heath, Highgate Wood and Queen’s Park Committee –** responsible for the activities undertaken at Hampstead Heath, Highgate Wood and Queen’s Park, approving budget allocations for the forthcoming year and acting as Trustees of the charity.
- **Hampstead Heath Consultative Committee –** provides forum for local residents and users of the Heath to comment upon the management of the Heath.
All of the above committees are ultimately responsible to the Court of Common Council of the City of London. Committee meetings are held in public, enabling the decisionmaking process to be clear, transparent and publicly accountable. Details of the membership of Committees of the City Corporation are available at www.cityoflondon.gov.uk
The Hampstead Heath Trust Fund (HHTF) is a subsidiary controlled by this charity. HHTF was established under the Local Government Reorganisation (Hampstead Heath) Order 1989 with an endowment of £15 million. Its purpose is to contribute towards the running costs of the Heath. Separate accounts are prepared for the subsidiary, which are consolidated with these accounts. A copy of these is available from the email address stated on page 42.
The charity is consolidated within City’s Cash as the City of London Corporation exercises operational control over their activities. City’s Cash is a fund of the City Corporation that can be traced back to the 15th century and has been built up from a combination of properties, land, bequests and transfers under statute since that time. Investments in properties, stocks and shares are managed to provide a total return that:
- Allows City’s Cash to use the income for the provision of services that are of importance nationally and internationally as well as to the City and Greater London;
- Maintains the asset base so that income will be available to fund services for the benefit of future generations.
The trustee believes that good governance is fundamental to the success of the charity. A comprehensive review of governance commenced during 2019/20 and is ongoing to ensure that the charity is effective in fulfilling its objectives. Reference is being made to the good practices recommended within the Charity Governance Code throughout this review. Focus is being placed on ensuring regulatory compliance and the ongoing maintenance of an efficient and effective portfolio of charities that maximise impact for beneficiaries.
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Hampstead Heath | Annual Report and Consolidated Financial Statements 2020/21
## **ORGANISATIONAL STRUCTURE AND DECISION-MAKING PROCESS**
The charity is administered in accordance with its governing instruments and the City Corporation’s own corporate governance and administration framework, including Committee Terms of Reference, Standing Orders, Financial Regulations and Officer Scheme of Delegations. These governance documents can be obtained via a request to the email address stated on page 42.
Each Member by virtue of their membership of the Court of Common Council, its relevant committees and sub-committees, has a duty to support the City Corporation in the proper exercise of its functions and in meeting its duties as trustee of the charity by faithfully acting in accordance with charity law, the Terms of Reference of the relevant committee or sub-committee, and the City of Corporation’s agreed corporate governance framework as noted above, backed up by its standards regime.
## **INDUCTION AND TRAINING OF MEMBERS**
The City Corporation makes available to its Members, seminars and briefings on various aspects of its activities, including those concerning the charity, to enable Members to carry out their duties efficiently and effectively. Induction meetings are provided on specific aspects of the work of Hampstead Heath. If suitable seminars or other training options are identified that are relevant to the charity, Members are advised of these opportunities.
## **OBJECTIVES AND ACTIVITIES**
The objective of the charity is the preservation and maintenance of Hampstead Heath in perpetuity, as an open space for the recreation and enjoyment of the public.
In support of these objectives the Hampstead Heath Management Strategy sets out the themes which are underpinned by the Heath Vision; developed in collaboration with stakeholders. The themes are:
- We protect and conserve the Heath
- The Heath enriches our lives
- The Heath is inclusive and welcoming
- Together we care for the Heath
By means of these outcomes the management of the Heath can be focussed to ensure that the elements vital to the maintenance, care and management of the open space are delivering the objectives of the charity.
The Hampstead Heath Trust Fund is a subsidiary controlled by this charity. That charity was established under the Local Government Reorganisation (Hampstead Heath) Order 1989 with an endowment of £15 million. Its purpose was to contribute towards the running costs of the Heath. Separate accounts are prepared for the subsidiary, which are consolidated within these accounts.
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Hampstead Heath | Annual Report and Consolidated Financial Statements 2020/21
By virtue of the London Government Reorganisation (Hampstead Heath) Order 1989, the City of London Corporation acquired responsibility for the management of Hampstead Heath with effect from 31 March 1989. At the same time the London Residuary Body transferred £15 million to the City of London Corporation for the establishment of the Hampstead Heath Trust Fund, the purpose of which is the preservation and enhancement of Hampstead Heath as an open space for recreation and enjoyment of the general public.
Contributions towards the running cost of the Heath are assessed on a triennial basis and increased annually in accordance with the average earnings index. The aim for the Trust Fund is to meet a proportion of the maintenance cost of the Heath. In doing so, it is anticipated that the resulting upkeep and improvements will enhance the use made of the Heath by all of those who visit it.
## **Investment Policy**
The investments are held within both the Hampstead Heath Trust segregated portfolio and the City of London Corporation Charities Pool, a charity registered in the UK with the Charity Commission (charity number: 1021138). The investment policy is to provide a real increase in annual income in the long term whilst preserving the value of the capital base. The annual report and financial statements of the Charities Pool (which include an analysis of investment performance against objectives set) are available from the Chamberlain of London, at the email address stated on page 42.
## **Volunteers**
Hampstead Heath is particularly successful in providing volunteer opportunities. Working in partnership with a dedicated charity, Heath Hands, Hampstead Heath has in excess of 13,000 hours of volunteer input per year.
## **Remuneration Policy**
The charity’s senior staff are employees of the City Corporation and, alongside all staff, pay is reviewed annually. The City Corporation is committed to attracting, recruiting and retaining skilled people and rewarding employees fairly for their contribution. As part of this commitment, staff are regularly appraised and, subject to performance, eligible for the payment of bonuses and recognition awards.
The above policy applies to staff within the charity’s key management personnel, as defined within note 9 to the financial statements.
The charity is committed to equal opportunities for all employees. An Equality and Inclusion Board has been established to actively promote equality, diversity and inclusion in service delivery and employment practices. The Board is responsible for monitoring the delivery of the Equality and Inclusion Action Plan and progress against the Equality Objectives for 2016-20. This also includes addressing the City Corporation’s gender pay gap.
Owing to the COVID 19 pandemic and the recommendations from the Tackling Racism Taskforce, which was set up last year to identify the actions that the City Corporation could implement to tackle racism in all its forms, the Corporate Equality
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Hampstead Heath | Annual Report and Consolidated Financial Statements 2020/21
and Inclusion Plan is currently being updated. There is work ongoing relating the new Equalities and Inclusion objectives, that will include internal and external consultation. This is expected to take place in the summer, with publication of the revised Equalities and Inclusion objectives by the end of 2021.
Senior staff posts of the City Corporation are individually evaluated and assessed independently against the external market allowing each post to be allocated an individual salary range within the relevant grade, which incorporates market factors as well as corporate importance.
## **Fundraising**
Section 162a of the Charities Act 2011 requires charities to make a statement regarding fundraising activities. The legislation defines fundraising as “soliciting or otherwise procuring money or other property for charitable purposes”. Although the Hampstead Heath charity does not undertake widespread fundraising from the general public, any such amounts receivable are presented in the financial statements as “voluntary income” including grants
In relation to the above we confirm that all solicitations are managed internally, without involvement of commercial participators or professional fund-raisers, or third parties. The day to day management of all income generation is delegated to the executive team, who are accountable to the trustee. The charity is not bound by any regulatory scheme and does not consider it necessary to comply with any voluntary code of practice.
From March 2021 a donations page has been created on the Hampstead Heath webpage, inviting and enabling the public to make on-line donations to either Hampstead Heath Bird and Mammal Shelters campaign or Hampstead Heath Model Boating Pond Island – Wildlife Sanctuary campaign.
The charity has received no complaints in relation to fundraising activities in 2020/21 (2019/20: nil). Individuals are not approached for funds, hence the charity does not consider it necessary to design specific procedures to monitor such activities.
## **Public benefit statement**
The Trustee confirms that it has referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing Hampstead Heath’s aims and objectives and in planning future activities. The purpose of the charity is the preservation in perpetuity of Hampstead Heath as an open space for the recreation and enjoyment of the public.
Consequently, the Trustee considers that Hampstead Heath operates to benefit the general public and satisfies the public benefit test.
## **REFERENCE AND ADMINISTRATIVE DETAILS**
The administrative details of the charity are stated on page 42.
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## **ACHIEVEMENTS AND PERFORMANCE**
Hampstead Heath Teams have ensured that the site remained open and accessible throughout the COVID-19 pandemic. However, with the focus on keeping the Heath open, tidy and safe, this did impact on the delivery of some of the projects planned for 2020/21 which will roll over into 2021/22.
## **Hampstead Heath’s 2020/21 aims together with their outcomes were:**
**A review of the Hampstead Heath Bathing Ponds** - was completed and a range of outcomes were identified, which were implemented during 2020/21 together with additional Covid-19 related operational changes.
**Hampstead Heath waste and recycling strategy** - has been developed and is being implemented, which will assist with managing these elements sustainability. Due to Covid-19 the planned education and outreach activity with partners and stakeholders to improve recycling take up had to be postponed. The increased levels of waste that have been left on Hampstead Heath has being challenging. However, the strategy has assisted with managing this effectively.
**A Sustainable Fleet & Plant Management Plan** - to comply with the requirements of the Ultra-Low Emissions Zone has been developed and a plan to replace vehicles in accordance and to comply with this has been developed. This will enable us to ensure the long-term viability of the Charity’s vehicles and equipment.
**East Heath Car Park improvements** – this work has been delayed as the car park was provided exclusively for key hospital workers at the start of the pandemic. The work will commence in early 2021/22.
**Improvements to the Adventure Playground at Parliament Hill** – work on the implementation of the planned improvements to support the aspiration to deliver natural play and develop clear links to exploring the wider Heath has been delayed due to Covid-19 and will commence in early 2021/22.
**The Hampstead Heath Management Strategy 2018-2028** - has been developed to enable a long-term vision and outcomes to be identified and delivered. As part of this process a Measurement Framework is being developed and this will enable outcomes and impacts to be measured and shared. Reporting on annual progress has been completed, and the outcomes and impacts will be reviewed, in light of the issues of the past year, and its impact upon the Heath.
**Asset Management Plan** - A Masterplan to manage a range of Divisions built assets, including Heathfield House, Parliament Hill and Kenwood Yard has been developed, working in partnership with the City Surveyors Department. This document will assist with understanding changing needs and will support the way in which assets will be used in the future to deliver services to our visitors.
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## **Hampstead Heath Trust**
The aim for the Hampstead Heath Trust Fund is to meet a proportion of the maintenance cost of the Heath. In doing so, it is anticipated that the resulting upkeep and improvements will enhance the use made of the Heath by all of those who visit it. In 2020/21, the Trust has contributed £1,361,163 towards the preservation and enhancement of Hampstead Heath as an open space for recreation and enjoyment of the general public.
## **PLANS FOR FUTURE PERIODS**
The global pandemic of Coronavirus was still very much part of operations at the start of the 2021/22. This may have an impact on income and ability to deliver some projects in the next 12 months.
## **Key projects for 2021/22 include:**
## **Hampstead Heath**
**COVID-19 Impact Recovery Programme** - has been developed in order to continue to respond to Government Guidance and maintain COVID secure workplaces and facilities. A range of interventions to address impacts on wildlife, erosion, compaction, path maintenance, waymarking and signage improvements will be carried out.
**Hampstead Heath Bathing Ponds review** - continued implementation of the identified outcomes which include delivery of a capital project to carry out a programme of safety, access and security improvements across the Bathing Ponds and Lido.
**East Heath car park** - implementation of delayed capital improvements which will ensure that the car park is safe, accessible and equipped with electric charging points for the future.
**Celebrate the 150th Anniversary of the Hampstead Heath Act (1871)** - developing outcomes for learning, volunteering and wider participation and support. Working in partnership with the Heath & Hampstead Society to design and install a series of information panels.
**Ultra Low Emissions Zone (ULEZ)** - compliance with requirements. Managing the financial implications and delivering the vehicle replacement programme to minimise the impact upon the environment.
**Playground Improvements** - at Parliament Hill Adventure, Vale of Health, East Heath and Heath Extension Playgrounds. To provide more natural play and develop further links to the Heath.
**Licencing** - Obtain approval and implement new licensing schemes in line with the provision of the 2018 Open Spaces Act.
**Budget management** - Achieve financial savings as required through a combination of reducing expenditure and appropriate income generation activities.
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Hampstead Heath | Annual Report and Consolidated Financial Statements 2020/21
**Target Operating Model (TOM)** - Support the development of the City of London’s new Target Operating Model and the creation of a new Department within which will sit this charity.
The Trustees do not consider there to be any material uncertainty around going concern and further detail regarding this is set out on page 25.
The Trustee is monitoring the situation and will continue with its purpose to preserve and maintain Hampstead Heath, as an Open Space for the recreation and enjoyment of the public.
## **Hampstead Heath Trust**
The charity continues to be affected by the global economic downturn from the global pandemic of Coronavirus. There has been a significant recovery in the market value of the investments held by the charity, and although investment income has increased compared to 2019/20, the downturn continues to affect the income generating of the charity’s investments, and may impact upon the future level of distributable income available to meet the grant-making objectives of the charity.
The Trustees do not consider there to be any material uncertainty around going concern and further detail regarding this is set out on page 25.
The Trustee is monitoring the situation and will continue with its operating model of only committing grants from available income funds. Where deemed necessary, future grant programmes may be placed on hold until adequate investment income has been received.
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Hampstead Heath | Annual Report and Consolidated Financial Statements 2020/21
## **FINANCIAL REVIEW**
## **Overview of Financial Performance**
## **Income**
In 2020/21 the consolidated total income for the year was £9,460,415, an overall decrease of £167,930 against the previous year (£9,628,345). The principal source of income was from City of London Corporation’s City’s Cash fund (see below).
Income from Charitable Activities comprised £1,196,096 from fees charged (2019/20: £1,624,310), £133,125 from rents (2019/20: £232,163) and £960 from sales of goods, products and materials (2019/20: £40,337). The drop in income is due to the COVID19 pandemic and Government restrictions.
Donations – being amount received from the public at the ponds and paddling pool. In total £14,024 was received during the year (2019/20: £7,255). From March 2021 a donations page has been created on the Hampstead Heath webpage, inviting and enabling the public to make on-line donations to either Hampstead Heath Bird and Mammal Shelters campaign or Hampstead Heath Model Boating Pond Island – Wildlife Sanctuary campaign.
Investment income of £1,560,485 (2019/20: £1,494,596) was received during the year from the Hampstead Heath Trust Fund.
Other income of £104,420 was received in relation to Coronavirus Job Retention Scheme (2019/20: £nil). There are no unfulfilled conditions or other contingencies relating to this grant income and no other forms of government assistance have been received in the year.
An amount of £6,451,305 (2019/20: £6,229,684) was received from the City of London Corporation’s City’s Cash as a contribution towards the running costs of the charity.
## **Expenditure**
Total expenditure for the year was £9,469,987, with charitable activities expenditure in the year totalling £9,320,721 (2019/20: £9,641,825). The decrease in expenditure is owing to a lower number of cyclical building works taking place during the year. This is due to the economic impact of COVID-19 and subsequent reduced income revenue generation, with the City Surveyor tasked by the Chamberlain to review current programmes of work to level the expenditure, smoothing some of the spend into a ‘fourth’ year to reduce the impact of committed expenditure within the next two years. The City’s programme of cyclical repairs and maintenance works to maintain its operational properties in fair to good condition is usually delivered in a number of overlapping three year programmes of works. The programme is monitored by the Corporate Asset Sub Committee of the City of London Corporation. Expenditure on raising funds for the year was £149,266 (2019/20: £209,487).
## **Funds held**
The charity’s total funds held increased by £6,670,434 to £52,536,817 as at 31 March 2021 (2019/20: £45,866,383). The net gain on investments represents the difference
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in the market value of investments between 1 April 2020 and 31 March 2021 after taking account of any purchases and sales which were made during 2020/21.
Within the total funds held, £32,924,011 (2019/20: £26,244,005) represent permanent and expendable endowment funds.
The permanent endowment is held in perpetuity as a capital fund to generate income for the activities of the charity, with income arising from this capital being available to contribute to the running costs of the Heath.
The expendable endowment funds are used for the primary objectives of the charity.
Should net income from the endowment funds be greater than the required contribution towards the running costs of the Heath, then the surplus is retained within unrestricted funds held for use in future years in accordance with the objectives of the charity. A surplus of £50,056 was generated in the year (2019/20: £nil).
Unrestricted income funds (General funds)– these funds can be used in accordance with the charitable object at the discretion of the Trustee and include both income generated by assets representing unrestricted funds. Specifically, this represents any surplus of income over expenditure of the Trust distributed annually towards the running costs of the Heath. £216,877 was held at year-end (2019/20: £166,821).
The charity’s designated funds consist of unrestricted income funds which the Trustee has chosen to set aside for specific purposes. Such designations are not legally binding, and the Trustee can decide to “undesignate” these funds at any time. Designations as at 31 March 2021 totalled £19,393,696 (2019/20: £19,453,324). These represent designated funds within the unrestricted income fund which represents the Capital fund and the net book value of fixed assets held.
A restricted fund of £2,233 (2019/20: £2,233) was held at year-end for the Parliament Hill Outdoor Gym project.
Details of all funds held, including their purposes, is set out within note 16 to the financial statements.
## **Investments performance**
The investments are held within both a segregated portfolio primarily invested in UK shares and the City of London Corporation Charities Pool. The performance of these investments are analysed as follows:
## 1) Segregated portfolio
The funds of the charity are managed by Artemis Investment Management LLP. Market values and performance against benchmarks for the year was as follows:
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Hampstead Heath | Annual Report and Consolidated Financial Statements 2020/21
|Hampstead Heath Trust
City of London Charities Pool
(part of)|Market Value|Returns
Benchmark|
|---|---|---|
||**2020/21**
2019/20|**2020/21**
2019/20
**2020/21**
2019/20|
||**£**
£|**%**
%
**%**
%
**+30.63%**
-14.61%
**+26.71%**
-18.45%
**+30.72%**
-14.78%
**+26.71%**
-18.45%|
||||
||**32,519,053**
25,953,270
**578,078**
463,855||
||**33,097,131**
26,417,125||
## 2) Hampstead Heath Trust Fund
As at 31 March 2021, the investments held in the Hampstead Heath Trust Fund achieved a return of +30.63% (2019/20:-14.61%) compared to the FTSE All Share Index return of +26.71% (2019/20: -18.45%). Over three years this fund achieved a return of +5.16% (2019/20: -2.29%) compared to the FTSE All Share Index return of +3.19% (2019/20: -4.24%). Over five years, the fund achieved a return of +7.22% (2019/20: +1.36%) compared to the FTSE All Share Index return of +6.29% (2019/20: +0.57%).
|+0.57%).||
|---|---|
|**2020/21**
3 year
5 year
Fund
+5.16%
+7.22%
FTSE All Share
+3.19%
+6.29%
**Fund Outperformance**
+1.97%
+0.93%|2019/20
3 year
5 year
-2.29%
+1.36%
-4.24%
+0.57%|
||+1.95%
+0.79%|
## 3) City of London Corporation Charities Pool
Financial markets recovered strongly over the twelve months to 31 March 2021 following the decline in asset prices in early 2020 during the emergence of the global pandemic. Under these conditions investments held in the Charities Pool performed very well, generating a gross return of +30.72% for 2020/21 (2019/20: -14.78%) which compares favourably against the FTSE All Share Index benchmark return of +26.71% (2019/20 -18.45%). As a result the longer term performance of the Charities Pool investments, as displayed in the table below, has significantly improved compared to the position reported twelve months ago.
## **Reserves**
The charity is supported by the City of London Corporation out of its City’s Cash Funds. The contribution towards the running costs of Hampstead Heath is determined in accordance with a formula set out in the governing document. Reserves therefore represent the accumulated net income that cannot be distributed under the existing
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governance arrangements. Due to the governance arrangements in place, a reserves policy is considered by the trustee to be inappropriate.
## **Spending Policy**
The reserves policy of the charity is that the original endowment of £15 million (now worth £ 32.5 million) should produce income to cover a proportion of the running costs of Hampstead Heath. The contribution for 2020/21 of £1,361,163 (2019/20: £1,285,109) consists of £1,336,000 from the permanent endowment (2019/20: £1,262,119), and income arising from the former T.J. Barratt Trust, which was transferred to the Hampstead Heath Trust Fund in November 2011, of £25,163 (2019/20: £22,990).
Should the actual income earnt in any specific year, added to the surpluses from previous years, be less than the contribution based on the funds from the original endowment, then the lower sum is attributed. The Finance Committee may decide that an allocation is to be made from the permanent endowment reserves of the Trust Fund. This is within the terms of the Transfer Order for the original endowment. The contribution of £1,361,163 for 2020/21 from the permanent endowment was met entirely from net income and no further allocation from the permanent endowment reserves was required.
## **Principal Risks and Uncertainties**
The charity is committed to a programme of risk management as an element of its strategy to preserve the charity’s assets. In order to embed sound practice the senior leadership team ensures that risk management policies are applied, that there is an on-going review of activity and that appropriate advice and support is provided. A key risk register has been prepared for the charity, which has been reviewed by the Trustee. This identifies the potential impact of key risks and the measures which are in place to mitigate such risks.
The principal risks faced by the charity, and actions taken to manage them are as follows:
## **Risks which are specific to Hampstead Heath:**
|**Risk**|**Actions to manage risks**|
|---|---|
|**Impact of housing**
**and population and**
**transport increase**|Maintain a close partnership with Planning
Authorities.
Review local planning applications which may
impact on the Open Spaces.
Respond to consultation on local plans to help
influence the content of the documents.
.|
|**Plant and Tree**
**Disease**|Sourcing of plants / trees through approved
suppliers.|
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**----- Start of picture text -----**
Risk Actions to manage risks
Trained arboricultural contractors carrying out
spraying and nest removal of Oak Processionary
Moth.
Continue to monitor pest and tree disease across
the charity.
A nnual Health & Safety site Audits with peer review.
Ensuring the Health Hold local Health & Safety meetings. Staff updated
and Safety of staff, in toolbox / team talks.
contractors, visitors Online e-learning and training sessions undertaken
and volunteers by staff e.g. Mental Health Awareness and Fire
Safety.
Alerts issued to staff via Met Office.
Extreme Weather Trigger Event Policy embedded into way of working.
Events Review process 6 monthly or following an extreme
weather event.
Training for lifeguards.
Hampstead Heath Safety equipment accessible at ponds and regular
Water bodies checks undertaken and defects reported for repair
including Bathing or replacement.
Ponds Appropriate signage at ponds is regularly checked
and defects reported for repair or replacement.
Impact of Covid-19 Working closely with Chamberlain to monitor budget
on income lines and keep them informed as financial situation
generation and develops.
financial
Predictions on loss of income being worked up to aid
management longer term decision making, including rental, sports
provision, catering and retail.
Impact of Covid-19 Public health and safety works continues.
on health and safety Staff are working an emergency roster. Staff deliver
of visitors and staff the four ‘Es’ and are working in partnership with other
Local Authority officers and the MPS delivering
Covid-19 advice.
Staff continue to carry out weekly health and safety
checks and these are recorded.
Risk Assessments and Safe Systems of Work have
been reviewed and shared with staff across the
Division. Staff have access to Personal Protective
Equipment (PPE) including masks, gloves and
cleaning materials. Signage and social media is
being used effectively to promote Covid-19 guidance
and regulations.
Impact of Covid-19 Development of Annual Work Programme
accelerating long interventions to address impacts on wildlife, erosion,
term damage to compaction and path maintenance.
sites
**----- End of picture text -----**
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Hampstead Heath | Annual Report and Consolidated Financial Statements 2020/21
|**Risk**|**Actions to manage risks**|
|---|---|
||Drone surveys to review impacts and assist with
intervention.
Planting of wildflower meadows and fencing of areas
of high impact to assist with recovery.|
|**Open Spaces**
**workforce wellbeing**|Support offered to staff directly and indirectly
affected by changing Covid conditions, including
those dealing with greater operational demands, as
well as those coping with challenging work-from-
home environments.|
**Risks which are specific to Hampstead Heath Trust Fund:**
|**Risk**|**Actions to manage risks**|
|---|---|
|Decline in income|
Implementing
strict controls.
The charity’s funds are invested by a
professional
fund manager.
The Financial Investment Board regularly monitors
the performance of this fund manager.|
|Where the Trustee
has a conflict of
interest|
T
hose concerned
having
a specific understanding
of trust law.
Adopting the protocol for disclosing any potential
conflict.|
|Losing directly
employed staff and/or
the support staff|
Documenting systems, plans and projects
Having any necessary training programmes|
|||
15
Hampstead Heath | Annual Report and Consolidated Financial Statements 2020/21
## **TRUSTEE’S RESPONSIBILITIES**
The Trustee is responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Charity law requires the Trustee to prepare financial statements for each financial year in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under charity law the Trustee must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and charity and of the incoming resources and application of resources, including the income and expenditure, of the group for that period.
In preparing these financial statements, the Trustee is required to:
- select suitable accounting policies and then apply them consistently;
- make judgements and accounting 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;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.
The Trustee is responsible for keeping adequate accounting records that are sufficient to show and explain the charity’s transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011. 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.
In so far as the Trustee is aware:
- there is no relevant audit information of which the charity’s auditors are unaware; and
- the Trustee has taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information.
Financial statements are published on the Trustee’s website in accordance with legislation in the United Kingdom governing the preparation and dissemination of financial statements, which may vary from legislation in other jurisdictions. The maintenance and integrity of the Trustee’s website is the responsibility of the Trustee. The Trustee’s responsibility also extends to the ongoing integrity of the financial statements contained therein.
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Hampstead Heath | Annual Report and Consolidated Financial Statements 2020/21
Adopted and signed for on behalf of the Trustee.
Jamie Ingham Clark FCA Chairman of Finance Committee of The City of London Corporation Guildhall, London 22 February 2022
Jeremy Paul Mayhew MA MBA, Deputy Chairman of Finance Committee of The City of London Corporation
17
Hampstead Heath | Annual Report and Consolidated Financial Statements 2020/21
## **INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEE OF HAMPSTEAD HEATH**
## **Opinion on the financial statements**
In our opinion, the financial statements:
- give a true and fair view of the state of the Group’s and of the Parent Charity’s affairs as at 31 March 2021 and of the Group’s incoming resources and application of resources 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.
We have audited the financial statements of Hampstead Heath Charity (“the Parent Charity”) and its subsidiaries (“the Group”) for the year ended 31 March 2021 which comprise the Consolidated Statement of Financial Activities, Consolidated Balance Sheet, 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).
## **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 believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## _Independence_
We remain independent of the Group and the Parent Charity in accordance with the ethical requirements 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.
## **Conclusions related 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 Group and the Parent Charity’s ability to continue as a going
18
Hampstead Heath | Annual Report and Consolidated Financial Statements 2020/21
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 Trustee is responsible for the other information. The other information comprises the information included in the Annual Report and Consolidated Financial Statements, other than the financial statements and our auditor’s report thereon. The other information comprises: Origins of the charity; the Trustee's Annual Report section, which includes: Structure and governance, Achievements and performance, Financial review; the Trustee responsibilities; Reference and administration details. 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 statements or a material misstatement of the other information. 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 Act 2011 requires us to report to you if, in our opinion;
- the information contained in the financial statements is inconsistent in any material respect with the Trustee’s Annual Report; or
- adequate accounting records have not been kept by the Parent Charity; or
- the Parent Charity 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 Trustee**
As explained more fully in the Trustee responsibilities statement, 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 Group’s and the Parent Charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of
19
Hampstead Heath | Annual Report and Consolidated Financial Statements 2020/21
accounting unless the Trustee either intend to liquidate the Group or the parent 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 the Act and relevant regulations made or having effect thereunder.
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.
## _Extent to which the audit was capable of detecting irregularities, including fraud_
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:
- We understood how the Group is complying with those legal and regulatory frameworks, by making enquiries to management, and the Trustee, of known or suspected instances of non-compliance with laws and regulations. We corroborated our enquiries through our review of key committee board minutes.
- We reviewed the financial statement disclosures to assess compliance with the relevant laws and regulations discussed above. We remained alert to any indications of non-compliance throughout the audit.
- We assessed the susceptibility of the Group's financial statements to material misstatement, including how fraud might occur, by discussing with management and the Trustee to understand where it is considered there was a susceptibility of fraud.
- We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements, and determined that the principal risks were related to the override of controls by management including posting of inappropriate journal entries, management bias in key accounting estimates, and the timing of income recognition.
- Audit procedures performed in response to the assessment above included: Enquiries of management; reviewing accounting estimates for bias and challenging assumptions made by management in their significant accounting estimates, primarily useful economic life of fixed assets and the recovery of debts; Sample testing the recognition of income; Sample testing the appropriateness of journal entries.
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Hampstead Heath | Annual Report and Consolidated Financial Statements 2020/21
Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.
A further description of our responsibilities for the audit of the financial statements is located at the Financial Reporting Council’s (“FRC’s”) website at: https://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 trustee, as a body, in accordance with the Charities Act 2011. 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 as a body, for our audit work, for this report, or for the opinions we have formed.
BDO LLP, statutory auditor London, UK Date: 02 March 2022
BDO LLP is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.
BDO LLP is a limited liability partnership registered in England and Wales (with registered number OC305127).
21
Hampstead Heath | Annual Report and Consolidated Financial Statements 2020/21
## **CONSOLIDATED STATEMENT OF FINANCIAL**
## **ACTIVITIES**
## **FOR THE YEAR ENDED 31 MARCH 2021**
|||Unrestricted|Restricted|Endowment|**2020/21**|
2019/20|
|---|---|---|---|---|---|---|
||Notes|Funds|Funds|Funds|**Total Funds**|Total Funds|
|||£|£|£|**£**|£|
|**Income and endowments from:**|||||||
|Voluntary activities|2|14,024|-|-|**14,024**|7,255|
|Charitable activities|3|1,330,181|-|-|**1,330,181**|1,896,810|
|Grant from City of London Corporation|4|6,451,305|-|-|**6,451,305**|6,229,684|
|Investments|5|1,560,485|-|-|**1,560,485**|1,494,596|
|Other income|6|104,420|-|-|**104,420**|-|
|**Total income and endowments**||9,460,415|-|-|**9,460,415**|9,628,345|
|**Expenditure on:**|||||||
|Raising funds|7|149,266|-|-|**149,266**|209,487|
|Charitable activities:|||||||
|Preservation of Hampstead Heath|7|9,320,721|-|-|**9,320,721**|9,641,825|
|**Total expenditure**||9,469,987|-|-|**9,469,987**|9,851,312|
|Netgains/(losses)on investments|12|-|-|6,680,006|**6,680,006**|(6,297,390)|
|**Net expenditure**||(9,572)|-|6,680,006|**6,670,434**|(6,520,357)|
|**Transfers between funds**|16|-|-|-|**-**|-|
|**Net movement in funds**||(9,572)|-|6,680,006|**6,670,434**|(6,520,357)|
|**Reconciliation of funds:**|||||||
|Total funds brought forward|16|19,620,145|2,233|26,244,005|**45,866,383**|52,386,740|
|**Total funds carried forward**|16|19,610,573|2,233|32,924,011|**52,536,817**|45,866,383|
All of the above results are derived from continuing activities.
There were no other recognised gains and losses other than those shown above. The notes on pages 25 to 41 form part of these financial statements.
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Hampstead Heath | Annual Report and Consolidated Financial Statements 2020/21
## **CONSOLIDATED BALANCE SHEET**
## **AS AT 31 MARCH 2021**
|**AS AT 31 MARCH 2021**||||
|---|---|---|---|
||Notes|**2021**|2020|
|||**Total**|Total|
|||**£**|£|
|**Fixed assets:**||||
|Tangible assets|11|**19,390,365**|19,449,993|
|Fixed asset investments|12|**32,841,486**|26,012,892|
|**Total fixed assets**||**52,231,851**|45,462,885|
|**Current assets**||||
|Debtors|13|**345,883**|439,566|
|Investments|12|**255,645**|404,233|
|Cash at bank and in hand||**894,812**|597,649|
|**Total current assets**||**1,496,340**|1,441,448|
|**Creditors: Amounts falling due within one year**|14|**(1,191,374)**|(1,037,950)|
|**Net current assets**||**304,966**|403,498|
|||||
|**Total assets less current liabilities**||**52,536,817**|45,866,383|
|**The funds of the charity:**||||
|Endowment funds|16|**32,924,011**|26,244,005|
|Restricted income funds|16|**2,233**|2,233|
|Unrestricted income funds|16|**19,610,573**|19,620,145|
|**Total funds**||**52,536,817**|45,866,383|
The notes on pages 25 to 41 form part of these financial statements
Approved and signed on behalf of the Trustee.
Caroline Al-Beyerty
Chamberlain of London and Chief Financial Officer
21 February 2022
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Hampstead Heath | Annual Report and Consolidated Financial Statements 2020/21
## **HAMPSTEAD HEATH BALANCE SHEET**
## **AS AT 31 MARCH 2021**
|**AS AT 31 MARCH 2021**||||
|---|---|---|---|
||Notes|**2021**|2020|
|||**Total**|Total|
|||**£**|£|
|**Fixed assets:**||||
|Tangible assets|11|**19,390,365**|19,449,993|
|**Current assets**||||
|Debtors|13|**72,434**|189,989|
|Cash at bank and in hand||**717,504**|420,341|
|**Total current assets**||**789,938**|610,330|
|**Creditors: Amounts falling due within one year**|14|**(784,374)**|(604,766)|
|**Net current assets**||**5,564**|5,564|
|||||
|**Total assets less current liabilities**||**19,395,929**|19,455,557|
|**The funds of the charity:**||||
|Restricted income funds|16|**2,233**|2,233|
|Unrestricted income funds|16|**19,393,696**|19,453,324|
|**Total funds**||**19,395,929**|19,455,557|
Approved and signed on behalf of the Trustee.
## Caroline Al-Beyerty
Chamberlain of London and Chief Financial Officer
21 February 2022
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Hampstead Heath | Annual Report and Consolidated Financial Statements 2020/21
## **NOTES TO THE FINANCIAL STATEMENTS**
## **1. ACCOUNTING POLICIES**
The following accounting policies have been applied consistently in dealing with items that are considered material in relation to the financial statements of the charity.
## **(a) Basis of preparation**
The financial statements of the charities, which is a public benefit entity under FRS102, have been prepared under the historical cost convention and in accordance with the Accounting and Reporting by Charities: Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (second edition effective 1 January 2019) and the Charities Act 2011.
## **(b) Group Financial Statements**
The consolidated financial statements for the Hampstead Heath Group comprise Hampstead Heath and the Hampstead Heath Trust Fund. The consolidation is produced on a line by line basis. Separate financial statements are also produced for the Hampstead Heath Trust Fund, which is a subsidiary of Hampstead Heath. This was established by the Local Government Reorganisation (Hampstead Heath) Order 1989, with an endowment valued at £15 million at that time, the purpose of which was to contribute to the running costs of the Heath.
## **(c) Going concern**
The financial statements have been prepared on a going concern basis as the Trustee considers that there are no material uncertainties about the charity’s ability to continue as a going concern. The charity’s governing documents place an obligation on the City of London Corporation to preserve the open spaces for the benefit of the public. Funding is provided from the City of London Corporation’s City’s Cash. On an annual basis, a medium-term financial forecast is prepared for City’s Cash, covering the next 5 years from the period covered by these financial statements. The latest forecast anticipates that adequate funds will be available in the 12 months from the date of these accounts being signed to enable the charity to continue to fulfil its obligations.
In making this assessment, the Trustee has considered the financial position, including future income levels and the liquidity of the charity in light of the ongoing impact of Covid-19 over the next 12-month period. The assessment helps to provide assurances that the charity can continue to keep operating over the next 12-month period. For this reason, the Trustee continues to adopt a going concern basis for the preparation of the financial statements.
## **(d) Key management judgements and assumptions**
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenditure. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the result of which form
25
Hampstead Heath | Annual Report and Consolidated Financial Statements 2020/21
the basis of decisions about carrying values of assets and liabilities that are not readily apparent from other sources. The resulting accounting estimates will, by definition, seldom equal the related actual results.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised and in any future periods affected. Management do not consider there to be any material revisions requiring disclosure.
In preparing the financial statements, management has made the following key judgements: useful economic life of fixed assets and the recovery of debts.
As one of the key judgements, trustees will include fixed investments and their market valuations as key accounting estimates in their consideration of the operating of the charity. The trustees will be aware that the market valuations included in the financial statements are taken at one single point in time and that the movements on general UK and global stock markets, and the likely impact of them upon the running costs of the Hampstead Heath, will affect their decision making.
## **(e) Statement of Cash Flows**
As per section 14.1 of the Charities SORP the Charity is not required to produce a statement of cash flows on the grounds that it is a qualifying entity.
A Statement of Cash Flows is included within the City’s Cash Annual Report and Financial Statements 2021 which is publicly available at www.cityoflondon.gov.uk.
## **(f) Income**
All income is included in the Statements of Financial Activities (SOFA) when the charity is legally entitled to the income; it is more likely than not that economic benefit associated with the transaction will come to the charity and the amount can be quantified with reasonable certainty. Income consists of donations, charges for use of facilities, contributions, grants (including government grants), investment income, interest, sales and rental income.
The City of London Corporation’s City’s Cash meets the deficit on running expenses of the charity and also provides funding for certain capital works. This income is considered due each year end once the deficit on running expenses and capital works funding has been confirmed, and is recognised in the SOFA at this point.
## **(g) Expenditure**
Expenditure is accounted for on an accruals basis and has been classified under the principal categories of ‘expenditure on raising funds’ and ‘expenditure on charitable activities’. 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 settlement will be required, and the amount of the obligation can be measured reliably.
Governance costs include the costs of governance arrangements which relate to the general running of the charity as opposed to the direct management of functions
26
Hampstead Heath | Annual Report and Consolidated Financial Statements 2020/21
inherent in the activities undertaken. These include the costs associated with constitutional and statutory requirements such as the cost of Trustee meetings.
Support costs (including governance costs) include activities undertaken by the City Corporation on behalf of the charity, such as human resources, digital services, legal support, accounting services, committee administration, public relations and premises costs. The basis of the cost allocation is set out in note 8.
The Trustee, the City Corporation, accounts centrally for all payroll related deductions. As a result, the charity accounts for all such sums due as having been paid. From 2021/22, the City Corporation, as Trustee, has taken a decision to seek reimbursement for the administration fees incurred from each of its charities.
## **(h) Foreign currencies**
Transactions in foreign currencies are recorded at the rate of exchange ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are valued at the year-end rate exchange. All gains or losses on translation are taken to Statement of Financial Activities in the year in which they occur.
## **(i) Pension costs**
Staff are employed by the City of London Corporation and are eligible to contribute to the City of London Local Government Pension Fund, which is a funded defined benefit scheme. The estimated net deficit on the Fund is the responsibility of the City of London Corporation as a whole, as one employer, rather than the specific responsibility of any of its three main funds (City Fund, City’s Cash and Bridge House Estates) or the trusts it supports.
The Fund’s estimated net liability has been determined by independent actuaries in accordance with FRS102 as £918.2m as at 31 March 2021 (£630.4m as at 31 March 2020). Since any net deficit is apportioned between the financial statements of the City of London’s three main funds, the charity’s Trustee does not anticipate that any of the liability will fall on the charity. The charity is unable to identify its share of the pension scheme assets and liabilities and therefore the Pension Fund is accounted for as a defined contribution scheme in these financial statements.
Barnett Waddingham, an independent actuary, carried out the latest triennial actuarial assessment of the scheme as at 31 March 2019, using the projected unit method. The actuary will carry out the next assessment of the scheme as at 31 March 2022, which will set contributions for the period from 1 April 2022 to 31 March 2024. Contribution rates adopted for the financial years 2019/20, 2020/21 and 2021/22 have been set at 21% (2018/19: 21%).
## **(j) Taxation**
The charity meets the definition of a charitable trust for UK income tax purposes, as set out in Paragraph 1 Schedule 6 of the Finance Act 2010. Accordingly, the charity is exempt from UK taxation in respect of income or capital gains under part 10 of the Income Tax Act 2007 or section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.
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Hampstead Heath | Annual Report and Consolidated Financial Statements 2020/21
## **(k) Fixed Assets**
## **Heritage Land and Associated Buildings**
Hampstead Heath comprises 275 hectares (680 acres) of land located in the London Boroughs of Camden and Barnet, together with associated buildings. The object of the charity is the preservation of the Heath at Hampstead in perpetuity as an open space for the recreation and enjoyment of the public. Hampstead Heath is considered to be inalienable (i.e. may not be disposed of without specific statutory powers).
Land and the original associated buildings acquired prior to 1 April 2009 are considered to be heritage assets. In respect of the original land and buildings, cost or valuation amounts are not included in these financial statements as reliable cost information is not available and a significant cost would be involved in the reconstruction of past accounting records, or in the valuation, which would be onerous compared to the benefit to the users of these accounts
Additions to the original land and capital expenditure on buildings and other assets would be included as fixed assets at historic cost, less provision for depreciation and any impairment, where this cost can be reliably measured.
## **Tangible fixed assets**
Assets that are capable of being used for more than one year and have a cost greater than £50,000 are capitalised. Such assets are stated at cost less accumulated depreciation and accumulated impairment losses. Depreciation is charged from the year following that of acquisition, on a straight-line basis, in order to write off each asset over its estimated useful life as follows. Land is not depreciated.
||Years|
|---|---|
|Operational buildings|30 to 50|
|Improvements and refurbishments to buildings|up to 30|
|Equipment|5 to 25|
|Infrastructure|up to 20*|
* With the exception of certain ponds infrastructure whose useful life has been determined at 120 years. The Hampstead Heath Ponds Project major Civil Engineering earthworks/structures (such as the foundations, sheet piling and earth bunds) fall into design working Life category 5 which is set out in the BS EN 1990:2002+A1:2005, Eurocode — Basis of structural design, with Indicative design working Life being 120 years.
## **(l) Investments**
The major part of the investments are in a segregated mandate externally managed by Artemis Investment Management LLP. Hampstead Heath Trust Fund also holds investments in the City of London Charities Pool (charity number 1021138) which is an investment mechanism operating in a similar way to a unit trust. This enables the City of London Corporation to “pool” small charitable investments together and
28
Hampstead Heath | Annual Report and Consolidated Financial Statements 2020/21
consequently obtain better returns than would be the case if investments were made individually.
Investments are valued at bid-price. Gains and losses for the year on investments held as fixed assets are included in the Statement of Financial Activities.
## **(m) Stocks**
Stocks are valued at the lower of cost or net realisable value. All stocks are finished goods and are held for resale as part of the charity operation.
## **(n) Cash**
Cash and cash equivalents include cash in hand, overdrafts (if any) and short term deposits and other instruments held as part of the Corporation’s treasury management activities with original maturities of three months or less.
## **(o) Funds structure**
Income, expenditure and gains/losses are allocated to particular funds according to their purpose:
**Permanent endowment fund** – this fund consists of funds which are held in perpetuity for the benefit of the charity as a result of conditions imposed by the original donors and trusts. Income generated from the investments which represent these funds can be spent on the charitable purpose of the charity, hence is allocated to the unrestricted income fund. Gains/losses on the underlying assets remain as part of the endowment.
**Expendable endowment fund** – the purpose of this fund is to provide income for the benefit of the charity as a result of conditions imposed by the original donors and trusts.
**Restricted funds** – these include income that is subject to specific restrictions imposed by donors, with related expenditure deducted when incurred.
**Unrestricted income funds** – these funds can be used in accordance with the charitable object at the discretion of the Trustee and include both income generated by assets representing unrestricted funds. Specifically, this represents any surplus of income over expenditure of the Trust distributed annually towards the running costs of the Heath.
**Designated funds** – these are funds set aside by the Trustee out of unrestricted funds for a specific purpose.
## **(p) Insurance**
The charity, elected Members and staff supporting the charity’s administration are covered by the City Corporation’s insurance liability policies, and otherwise under the indemnity the City Corporation provides to Members and staff, funded from City’s Cash.
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Hampstead Heath | Annual Report and Consolidated Financial Statements 2020/21
## **2. INCOME FROM VOLUNTARY ACTIVITIES**
||Unrestricted
funds
**2020/21**
**£**|Unrestricted
funds
2019/20
£|
|---|---|---|
|Donations and legacies|**14,024**|7,255|
## **3. INCOME FROM CHARITABLE ACTIVITIES**
|Unrestricted|Unrestricted|
|---|---|
|funds|funds|
|**2020/21**|2019/20|
|£
Charges for use of facilities
**1,196,096**
Sales
**960**
Rental income
**133,125**|£
1,624,310
40,337
232,163|
|**Total**
**1,330,181**|1,896,810|
## **4. INCOME FROM THE CITY OF LONDON CORPORATION**
||Unrestricted
funds
**2020/21**||Unrestricted
funds
2019/20|
|---|---|---|---|
|Revenue and capital grants from City of London Corporation|£
**6,451,305**||£
6,229,684|
## **5. INCOME FROM INVESTMENTS**
||Unrestricted|Unrestricted||
|---|---|---|---|
||funds|funds||
||**2020/21**|2019/20||
||**£**|£||
|Investment|income
**1,560,485**|1,494,147||
|Interest|**-**|449||
|**Total**|**1,560,485**|1,494,596||
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Hampstead Heath | Annual Report and Consolidated Financial Statements 2020/21
## **6. OTHER INCOME**
||Unrestricted
funds
**2020/21**
£|Unrestricted
funds
2019/20
£|
|---|---|---|
|Other income|**104,420**|-|
## **Income for the year included:**
**Donations** – being amount received from the public at the ponds and paddling pool. From March 2021 a donations page has been created on the Hampstead Heath webpage, inviting and enabling the public to make on-line donations to either Hampstead Heath Bird and Mammal Shelters campaign or Hampstead Heath Model Boating Pond Island – Wildlife Sanctuary campaign.
**Charitable activities** – being amounts generated from the sales of leaflets, books, maps cards and other publications relating to Hampstead Heath; charges made to the public for the use of facilities, admissions and services and from rental income.
**Grants from the City of London Corporation** – being the amount received from the City of London Corporation’s City’s Cash to meet the deficit on running expenses of the charity, alongside funding for capital purchases.
**Investment income** – being the amount received from the Charities Pool and interest receivable on cash balances held on behalf of the Trust.
**Other income** - included in Other Income on the Statement of Financial Activities is Coronavirus Job Retention Scheme income of £104,420 (2020: £nil). There are no unfulfilled conditions or other contingencies relating to this grant income and no other forms of government assistance have been received in the year.
31
Hampstead Heath | Annual Report and Consolidated Financial Statements 2020/21
## **7. EXPENDITURE**
|**Expenditure on raising funds**||||
|---|---|---|---|
|Direct
Support|**Total**|Direct
Support|Total|
|costs
costs|**2020/21**|costs
costs|2019/20|
|£
£
Investment management fees
146,418
-
Interestpayable
-
2,848|**£**
**146,418**
**2,848**|£
£
207,344
-
-
2,143|£
207,344
2,143|
|**Total**
146,418
2,848|**149,266**|207,344
2,143|209,487|
|**Expenditure on charitable activities**||||
|Direct
Support|**Total**|Direct
Support|Total|
|costs
costs|**2020/21**|costs
costs|2019/20|
|£
£
Preservation of Hampstead
Heath
8,053,940
1,266,781|**£**
**9,320,721**|£
£
8,368,775
1,273,050|£
9,641,825|
|**Grand total**
8,200,358
1,269,629|**9,469,987**|8,576,119
1,275,193|9,851,312|
## **Charitable activity**
Expenditure on the charitable activities includes labour, premises costs, equipment, materials and other supplies and services incurred in the running of Hampstead Heath.
## **Auditor’s remuneration and fees for other services**
BDO are the auditors of the City of London’s City’s Cash Fund and all of the different charities of which it is Trustee. The City of London Corporation charges the audit fee to its City’s Cash Fund. From 2021/22, the City Corporation, as Trustee, has taken a decision to seek reimbursement for the audit fee incurred from each of its charities. In 2020/21 no audit fee was recharged (2019/20: £nil). No other services were provided to the charity by its auditors during the year (2019/20: £nil).
## **8. SUPPORT COSTS**
Support costs include activities undertaken by the City of London Corporation on behalf of the Charity, such as human resources, digital services, legal support, accounting services, committee administration and premises costs. Such costs are determined on a departmental basis, and are allocated on a cost recovery basis to the charity based on time spent, with associated office accommodation charged proportionately to the space occupied by the respective activities, with the split of costs as follows:
32
Hampstead Heath | Annual Report and Consolidated Financial Statements 2020/21
||Charitable||||
|---|---|---|---|---|
||activities|Governance|**2020/21**|2019/20|
||£|£|**£**|£|
|Department:|||||
|Chamberlain|145,104|-|**145,104**|137,828|
|Comptroller & City Solicitor|-|-|**-**|-|
|Town Clerk|-|204,801|**204,801**|242,869|
|City Surveyor|312,271|-|**312,271**|369,277|
|Open Spaces directorate|211,788|-|**211,788**|178,413|
|Other governance & support costs|88,248|-|**88,248**|86,648|
|Digital Services|304,569|-|**304,569**|258,015|
|Sub-total|1,061,980|204,801|**1,266,781**|1,273,050|
|Reallocation of governance costs|204,801|(204,801)|**-**|-|
|**Total**|1,266,781|-|**1,266,781**|1,273,050|
All support costs are undertaken from unrestricted funds. Governance costs (2019/20: £242,869) are allocated based on a proportion of officer time spent on the administration of Trustee and Committee related meetings.
## **9. DETAILS OF STAFF COSTS**
All staff that work on behalf of the charity and group are employed by the City Corporation. The average number of people directly undertaking activities on behalf of the charity during the year was 97 (2019/20: 98).
Amounts paid in respect of employees directly undertaking activities on behalf of the charity were as follows:
|charity were as follows:|||
|---|---|---|
||**2020/21**|2019/20|
||**£**|£|
|Salaries and wages|**3,906,477**|3,787,348|
|National Insurance costs|**378,165**|371,744|
|Employer'spension contributions|**659,693**|672,405|
|**Total emoluments of employees**|**4,944,335**|4,831,497|
The number of directly charged employees whose emoluments (excluding employer’s pension contribution and national insurance contribution) for the year were over £60,000 was 2.0 (2019/20: 2.0).
|||**2020/21**|2019/20|
|---|---|---|---|
|£60,000|- £69,999|**2.0**|2.0|
## **Remuneration of Key Management Personnel**
The charity considers its key management personnel to comprise the Members of the City of London Corporation, acting collectively for the City Corporation in its capacity as the Trustee, and the Director of Open Spaces who manages the seven open spaces
33
Hampstead Heath | Annual Report and Consolidated Financial Statements 2020/21
funded by the City of London Corporation. A proportion of the Directors’ employment benefits are allocated to this charity.
Support is also provided by other chief officers and their departments from across the City of London Corporation, including the Town Clerk and Chief Executive, Chamberlain, Comptroller and City Solicitor and City Surveyor.
The amount of employee benefits received by key management personnel totalled £36,312 (2019/20: £32,724). No members received any remuneration, with directly incurred expenses reimbursed, if claimed. No expenses were claimed in 2020/21 (2019/20: £nil).
## **10. HERITAGE ASSETS – CHARITY AND GROUP**
Since 1880 the primary purpose of the charity has been the preservation of Hampstead Heath for the recreation and enjoyment of the public. As set out in Note 1(k), the original heritage land and buildings are not recognised in the Financial Statements. Policies for the preservation and management of Hampstead Heath are contained in the Hampstead Heath Management Plan. Records of heritage assets owned and maintained by Hampstead Heath can be obtained from the Director of Open Spaces at the principal address as stated on page 42.
## **11. TANGIBLE FIXED ASSETS – CHARITY AND GROUP**
||Buildings|Infrastructure|Equipment|Equipment|**Total**|
|---|---|---|---|---|---|
||||(WIP)|||
||£|£|£|£|**£**|
|**Cost**||||||
|At 1 April 2020|1,154,101|19,558,712|15,812|272,479|21,001,104|
|Additions|103,623|-|48,716|-|152,339|
|At 31 March 2021|1,257,724|19,558,712|64,528|272,479|**21,153,443**|
|**Depreciation**||||||
|At 1 April 2020|153,847|1,212,187|-|185,077|1,551,111|
|Charge for the year|26,459|166,124|-|19,384|211,967|
|Disposals|-|-|-|-|-|
|At 31 March 2021|180,306|1,378,311|-|204,461|**1,763,078**|
|**Net book value**||||||
|**At 31 March 2021**|1,077,418|18,180,401|64,528|68,018|**19,390,365**|
|||||||
|At 31 March 2020|1,000,254|18,346,525|15,812|87,402|19,449,993|
## **12. FIXED ASSET INVESTMENTS – GROUP ONLY**
The investments are held within both the Hampstead Heath Trust segregated portfolio and the City of London Corporation Charities Pool, a charity registered in the UK with the Charity Commission (charity number: 1021138). The Charities Pool is a UK registered unit trust.
The value of investments held by the charity are as follows:
34
Hampstead Heath | Annual Report and Consolidated Financial Statements 2020/21
||**2021**|2020|
|---|---|---|
||**£**|£|
|Market value 1 April|26,012,892|32,148,008|
|Additions|8,100,985|7,394,653|
|Disposals|(7,952,397)|(7,232,379)|
|(Loss)/gain for theyear|6,680,006|(6,297,390)|
|**Market value 31 March**|**32,841,486**|26,012,892|
|Cash held byfund managers|255,645|404,233|
|**Total investments 31 March**|**33,097,131**|26,417,125|
|**Cost 31 March**|**29,806,421**|30,284,595|
Total investments as at 31 March are analysed between long term and short-term investments as follows:
|investments as follows:|||
|---|---|---|
||**2021**|2020|
||**£**|£|
|Long term|**32,841,486**|26,012,892|
|Cash held byfund managers|**255,645**|404,233|
|Total|**33,097,131**|26,417,125|
## The geographical spread of listed investments as at 31 March was as follows:
|Held in the
UK
Held outside
the UK
**Total at 31**
**March 2021**
Held in the
UK
Held outside the
UK
Total at 31
March 2020
£
£
**£**
£
£
£
Unit trusts
1,798,162
-
**1,798,162**
1,963,403
-
1,963,403
Equities
27,136,442
3,906,882
**31,043,324**
21,158,443
2,891,046
24,049,489
Cash held byfund manager
255,645
-
**255,645**
404,233
-
404,233|Held in the
UK
Held outside
the UK
**Total at 31**
**March 2021**
Held in the
UK
Held outside the
UK
Total at 31
March 2020
£
£
**£**
£
£
£
Unit trusts
1,798,162
-
**1,798,162**
1,963,403
-
1,963,403
Equities
27,136,442
3,906,882
**31,043,324**
21,158,443
2,891,046
24,049,489
Cash held byfund manager
255,645
-
**255,645**
404,233
-
404,233|
|---|---|
|**Total**
29,190,249
3,906,882
**33,097,131**
23,526,079
2,891,046
26,417,125||
|**13.**
**DEBTORS – AMOUNTS DUE WITHIN ONE YEAR**
**Hampstead Heath consolidated**
**2021**
2020
**£**
£
Rental debtors
**8,155**
35,667
Prepayments and accrued income
**42,513**
41,856
Recoverable VAT
**-**
103,753
Other debtors
**295,215**
258,290||
|**Total**|**345,883**
439,566|
## **13. DEBTORS – AMOUNTS DUE WITHIN ONE YEAR**
Other debtors consist of non-property related debtors of £21,766 (2019/20: £8,713), sundry debtors of £6,814 (2019/20: £7,371) and dividends of £266,635 receivable from the fund manager (2019/20: £242,206).
35
Hampstead Heath | Annual Report and Consolidated Financial Statements 2020/21
|**Hampstead Heath**
Rental debtors
Prepayments and accrued income
Recoverable VAT
Other debtors|**2021**
2020
**£**
£
**8,155**
35,667
**42,513**
41,856
**-**
103,753
**21,766**
8,713|
|---|---|
|**Total**|**72,434**
189,989|
|Other debtors comprised of non-property related debtors.
**14.**
**CREDITORS – AMOUNTS DUE WITHIN ONE YEAR**
**Hampstead Heath consolidated**
**2021**
2020
**£**
£
Bank overdraft
**368,822**
395,160
Trade creditors
**117,581**
140,527
Accruals
**223,617**
239,884
Deferred income
**72,531**
54,459
Rent deposits
**51,925**
51,925
VAT liability
**192,091**
-
Other creditors
**164,807**
155,995||
|**Total**|**1,191,374**
1,037,950|
|**Deferred income analysis within creditors:**
Balance at 1 April
Amounts released to income
Amounts deferred in the year|**2021**
2020
**£**
£
54,459
49,916
(54,459)
(49,916)
72,531
54,459|
|Balance at 31 March|**72,531**
54,459|
## **14. CREDITORS – AMOUNTS DUE WITHIN ONE YEAR**
Deferred income relates to rental income received in advance for periods after the year-end.
|**Hampstead Heath**
Trade creditors
Accruals
Deferred income
Rent deposits
VAT liability
Other creditors|**2021**
2020
**£**
£
**117,581**
140,527
**223,617**
239,884
**72,531**
54,459
**51,925**
51,925
**192,091**
-
**126,629**
117,971|
|---|---|
|**Total**|**784,374**
604,766|
Other creditors consist of sundry creditors.
36
Hampstead Heath | Annual Report and Consolidated Financial Statements 2020/21
## **15. ANALYSIS OF CONSOLIDATED NET ASSETS BY FUND**
|At 31 March 2021|Unrestricted Funds|Unrestricted Funds|Restricted|Endowment|||
|---|---|---|---|---|---|---|
||General|Designated|Funds|Funds|**Total at 31**|Total at 31|
||Funds|Funds|||**March 2021**|March 2020|
||£|£|£|£|£|£|
|Tangible Assets|-|19,390,365|-|-|**19,390,365**|19,449,993|
|Fixed Asset Investments|-|-|-|32,841,486|**32,841,486**|26,012,892|
|Current Assets|1,001,251|3,331|2,233|489,525|**1,496,340**|1,441,448|
|Current Liabilities|(784,374)|-|-|(407,000)|**(1,191,374)**|(1,037,950)|
|**Total**|**216,877**|**19,393,696**|**2,233**|**32,924,011**|**52,536,817**|45,866,383|
|At 31 March 2020|Unrestricted Funds||Restricted|Endowment|||
||General|Designated|Funds|Funds|Total at 31|Total at 31|
||Funds|Funds|||March 2020|March 2019|
||£|£|£|£|£|£|
|Tangible Assets|-|19,449,993|-|-|19,449,993|19,672,960|
|Fixed Asset Investments|-|-|-|26,012,892|26,012,892|32,148,008|
|Current Assets|771,587|3,331|2,233|664,297|1,441,448|1,761,531|
|Current Liabilities|(604,766)|-|-|(433,184)|(1,037,950)|(1,195,759)|
|Total|166,821|19,453,324|2,233|26,244,005|45,866,383|52,386,740|
## **Expendable endowment movements 2011-2021**
At 31 March 2021
||Balance at 1
April|Revaluation
of
investments|Balance at
31 March|Cash|**Expendable**
**endowment**|
|---|---|---|---|---|---|
||£|£|£|£|£|
|Opening|393,461|8,497|401,958|177,308|579,266|
|2011-2012|401,958|11,764|413,722|177,308|591,030|
|2012-2013|413,722|58,823|472,545|177,308|649,853|
|2013-2014|472,545|34,640|507,185|177,308|684,493|
|2014-2015|507,185|32,680|539,865|177,308|717,173|
|2015-2016|539,865|(30,719)|509,146|177,308|686,454|
|2016-2017|509,146|60,784|569,930|177,308|747,238|
|2017-2018|569,930|5,229|575,159|177,308|752,467|
|2018-2019|575,159|(5,229)|569,930|177,308|747,238|
|2019-2020|569,930|(106,075)|463,855|177,308|641,163|
|2020-2021|463,855|114,223|578,078|177,308|**755,386**|
## **Hampstead Heath charity only net assets by fund**
|At 31 March 2021|Unrestricted Funds|Unrestricted Funds|Restricted|||
|---|---|---|---|---|---|
||General|Designated|Funds|**Total at 31**|Total at 31|
||Funds|Funds||**March 2021**|March 2020|
||£|£|£|£|£|
|Tangible Assets|-|19,390,365|-|**19,390,365**|19,449,993|
|Current Assets|784,374|3,331|2,233|**789,938**|610,330|
|Current Liabilities|(784,374)|-|-|**(784,374)**|(604,766)|
|**Total**|**-**|**19,393,696**|**2,233**|**19,395,929**|19,455,557|
37
Hampstead Heath | Annual Report and Consolidated Financial Statements 2020/21
|At 31 March 2020|Unrestricted Funds|Unrestricted Funds|Restricted|||
|---|---|---|---|---|---|
||General|Designated|Funds|Total at 31|Total at 31|
||Funds|Funds||March 2020|March 2019|
||£|£|£|£|£|
|Tangible Assets|-|19,449,993|-|19,449,993|19,672,960|
|Current Assets|604,766|3,331|2,233|610,330|640,106|
|Current Liabilities|(604,766)|-|-|(604,766)|(634,542)|
|Total|-|19,453,324|2,233|19,455,557|19,678,524|
## **16. CONSOLIDATED MOVEMENT IN FUNDS**
||Total as at 1|||||**Total as at 31**|
|---|---|---|---|---|---|---|
|At 31 March 2021|April 2020|Income|Expenditure|Gains|Transfers|**March 2021**|
||£|£|£|£|£|**£**|
|Endowment funds:|||||||
|Permanent endowment funds|25,602,842|-|-|6,565,783|-|**32,168,625**|
|Expendable endowment funds|641,163|-|-|114,223|-|**755,386**|
|Total endowment funds|26,244,005|-|-|6,680,006|-|**32,924,011**|
|Restricted funds:|||||||
|Parliament Hill Outdoor Gym|2,233|-|-|-|-|**2,233**|
|Unrestricted funds:|||||||
|General funds|166,821|9,308,076|(9,258,020)|-|-|**216,877**|
|Designated funds:|||||||
|Tangible fixed assets|19,449,993|152,339|(211,967)|-|-|**19,390,365**|
|Capital fund|3,331|-|-|-|-|**3,331**|
|Total unrestricted funds|19,620,145|9,460,415|(9,469,987)|-|-|**19,610,573**|
||||||||
|**Total funds**|45,866,383|**9,460,415**|**(9,469,987)**|**6,680,006**|**-**|**52,536,817**|
||Total as at 1|||||Total as at 31|
|---|---|---|---|---|---|---|
|At 31 March 2020|April 2019|Income|Expenditure|Losses|Transfers|March 2020|
||£|£|£|£|£|£|
|Endowment funds:|||||||
|Permanent endowment funds|31,794,157|-|-|(6,191,315)|-|25,602,842|
|Expendable endowment funds|747,238|-|-|(106,075)|-|641,163|
|Total endowment funds|32,541,395|-|-|(6,297,390)|-|26,244,005|
|Restricted funds:|||||||
|Parliament Hill Outdoor Gym|2,233|-|-|-|-|2,233|
|Unrestricted funds:|||||||
|General funds|166,821|9,628,345|(9,628,345)|-|-|166,821|
|Designated funds:|||||||
|Tangible fixed assets|19,672,960|-|(222,967)|-|-|19,449,993|
|Capital fund|3,331|-|-|-|-|3,331|
|Total unrestricted funds|19,843,112|9,628,345|(9,851,312)|-|-|19,620,145|
||||||||
|Total funds|52,386,740|9,628,345|(9,851,312)|(6,297,390)|-|45,866,383|
38
Hampstead Heath | Annual Report and Consolidated Financial Statements 2020/21
## **Purpose of the endowment funds**
The expendable endowment fund is invested as a capital fund to generate income for the activities of the charity. Any income generated is used in accordance with the objectives of the trust. The purpose of this fund is to provide net income to be used to contribute towards the running costs of the Heath, transferred from the former T J Barratt bequest in December 2011.
The permanent endowment fund is held in perpetuity as a capital fund to generate income for the activities of the charity. Before any potential gains on investments are considered, should net income be more than any year’s contribution to the running costs of the Heath, then the surplus funds are retained as unrestricted funds to be used in future years. During 2020/21 the surplus was £50,056 (2019/20: £nil). Should the actual income earnt in any specific year, added to the surpluses from previous years, be less than the contribution based on the funds from the original endowment, then the lower sum is attributed. The Finance Committee may decide that an allocation is to be made from the permanent endowment reserves of the Trust Fund. This is within the terms of the Transfer Order for the original endowment.
## **Purposes of restricted funds**
The restricted fund represents funds received from London Borough of Camden (Sports and Physical Activity Service) for creation of a new outdoor gym at Parliament Hill.
## **Purposes of designated funds**
Designated funds have been set aside by the Trustee for the following purposes:
- i. _Fixed Assets_ – these are included at historic cost less depreciation on a straight line basis to write off their costs over their estimated useful lives and less any provision for impairment. As at 31 March 2021 the net book value of fixed assets relating to direct charitable purposes amounted to £19,390,365 (2019/20: £19,449,993).
- ii. _Capital Fund_ - as part of an Open Spaces wide Fleet Management project a disposal exercise of redundant fleet and equipment was undertaken. It was agreed to use the income raised to fund energy efficiency improvement works. The installation of photovoltaic energy panels at the Lido, Hampstead Heath was completed.
39
Hampstead Heath | Annual Report and Consolidated Financial Statements 2020/21
|**Hampstead Heath movement**|**in funds**||||||
|---|---|---|---|---|---|---|
||Total as at 1||||**Total as at 31**||
|At 31 March 2021|April 2020|Income|Expenditure|Transfers|**March**|**2021**|
||£|£|£|£|**£**||
|Restricted funds:|||||||
|Parliament Hill Outdoor Gym|2,233|-|-|-||**2,233**|
|Unrestricted funds:|||||||
|General funds|-|7,747,591|(7,747,591)|-||**-**|
|Designated funds:|||||||
|Tangible fixed assets|19,449,993|152,339|(211,967)|-|**19,390,365**||
|Capital fund|3,331|-||-||**3,331**|
|Total unrestricted funds|19,453,324|7,899,930|(7,959,558)|-|**19,393,696**||
||||||||
|**Total funds**|19,455,557|7,899,930|(7,959,558)|-|**19,395,929**||
||Total as at 1||||Total as at 31||
|At 31 March 2020|April 2019|Income|Expenditure|Transfers|March|2020|
||£|£|£|£|£||
|Restricted funds:|||||||
|Parliament Hill Outdoor Gym|2,233|-|-|-||2,233|
|Unrestricted funds:|||||||
|General funds|-|8,133,749|(8,133,749)|||-|
|Designated funds:|||||||
|Tangible fixed assets|19,672,960|-|(222,967)|-|19,449,993||
|Capital fund|3,331|-|-|-||3,331|
|Total unrestricted funds|19,676,291|8,133,749|(8,356,716)|-|19,453,324||
||||||||
|Total funds|19,678,524|8,133,749|(8,356,716)|-|19,455,557||
## **17. RELATED PARTY TRANSACTIONS**
The City Corporation is the sole Trustee of the charity, as described on page 2. The City Corporation provides various services to the charity, the costs of which are recharged to the charity. This includes the provision of banking services, charging all transactions to the charity at cost and crediting or charging interest at a commercial rate. The cost of these services is included within expenditure, as set out in note 8.
The charity is consolidated within the accounts of City’s Cash, a fund of the City of London Corporation (the City Corporation, the Corporate Trustee of the charity), by virtue of the deemed control arising from the provision of the shortfall between the charity’s income and expenditure by City’s Cash, whose place of business is Guildhall, London EC2P 2EJ. The principal purpose of City’s Cash is to manage its investments in properties, stocks and shares to provide returns which allows the City Corporation to use the income for the provision of services that are of importance to the City and Greater London as well as nationally and internationally, and to maintain the asset base so that income will be available to fund services for the benefit of future
40
Hampstead Heath | Annual Report and Consolidated Financial Statements 2020/21
generations. The financial statements of City’s Cash can be obtained from the address provided above.
The charity is required to disclose information on related party transactions with bodies or individuals that have the potential to control or influence the charity. Members are required to disclose their interests, and these can be viewed online at www.cityoflondon.gov.uk.
Members and senior staff are requested to disclose all related party transactions, including instances where their close family has made such transactions.
Figures in brackets represent the amounts due at the balance sheet date. Other figures represent the value of the transactions during the year.
||**Connected**||||
|---|---|---|---|---|
|**Related party**|**party**|**2020/21**|2019/20|**Detail of transaction**|
|||**£**|£||
||The City of||||
|City of London|London
Corporation is
the Trustee for|||The City of London
Corporation's City's Cash
meets the deficit on|
|Corporation|the charity|**6,451,305**|6,229,684|running expenses of the|
|||**(nil)**|(nil)|charity|
|||**1,266,781**|1,273,050|Administrative services|
|||**(nil)**|(nil)|provided for the charity|
|||||Distribution from the|
|||**23,833**|21,866|Charities Pool and|
|||||interest receivable on|
|||**(nil)**|(nil)|cash balances|
||The Hampstead||||
||Heath Trust||||
||Fund is included||||
||within the||||
||Hampstead|||Contribution to|
||Heath|||preservation and|
|Hampstead|consolidated|||enhancement of|
|Heath Trust|financial|**1,361,163**|1,285,109|Hampstead Heath as an|
|Fund|statements|**(nil)**|(nil)|open space|
41
Hampstead Heath | Annual Report and Consolidated Financial Statements 2020/21
## **REFERENCE AND ADMINISTRATION DETAILS**
## **CHARITY NAME:** Hampstead Heath
Registered charity number: 803392
## **PRINCIPAL OFFICE OF THE CHARITY & THE CITY CORPORATION:**
Guildhall, London, EC2P 2EJ
## **TRUSTEE:**
The Mayor and Commonalty & Citizens of the City of London
## **SENIOR MANAGEMENT:**
## **Chief Executive**
John Barradell OBE - The Town Clerk and Chief Executive of the City of London Corporation
## **Treasurer**
Caroline Al-Beyerty - The Chamberlain and Chief Financial Officer of the City of London Corporation (appointed 1 May 2021)
Dr Peter Kane - The Chamberlain of the City of London Corporation (retired 30 April 2021)
## **Solicitor**
Michael Cogher - The Comptroller and City Solicitor of the City of London Corporation
## **Open Spaces**
Colin Buttery – Director of Open Spaces
## **AUDITORS:**
BDO LLP, 55 Baker Street, London, W1U 7EU
## **BANKERS:**
Lloyds Bank Plc., P.O.Box 72, Bailey Drive, Gillingham Business Park, Kent ME8 0LS
## **INVESTMENT ADVISORS:**
Artemis Investment Management Limited, Cassini House, 57 St. James's Street, London, SW1A 1LD
Contact for The Chamberlain, to request copies of governance documents & of the Annual Report of City’s Cash:
PA-DeputyChamberlain@cityoflondon.gov.uk
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