Hampstead Heath
Incorporating:
Hampstead Heath Trust Fund
Annual Report and Financial Statements for the year ended 31 March 2024
Charity registration numbers 803392 and 803392-1
CONTENTS
Origins of the charity ............................................................................................... 1 Structure and governance ....................................................................................... 2 Achievements and performance ............................................................................. 7 Financial review .................................................................................................... ..9 Trustee’s responsibilities ....................................................................................... 15 Independent auditor’s report ................................................................................. 17 Statement of financial activities ............................................................................. 21 Balance sheet ....................................................................................................... 22 Notes to the financial statements .......................................................................... 23 Reference and administration details .................................................................... 43
ORIGINS OF THE CHARITIES
Hampstead Heath is the collective name for an area of land in North London, including Parliament Hill and Golders Hill, a total of 791 acres (320 hectares). The origins of Hampstead Heath lie in the transfer of Hampstead Heath into public ownership on the terms of the Hampstead Heath Act 1871. Subsequent land has been added over the years. The Heath is held by City Corporation, as trustee, as an open space for the recreation and enjoyment of the public. The Heath falls within two London Boroughs: Camden and Barnet.
The Heath was transferred to the London Residuary Body on 1 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..
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 City of London Corporation is committed to conserving the Heath and its wildlife and vegetation and providing 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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TRUSTEE’S ANNUAL REPORT
STRUCTURE AND GOVERNANCE
GOVERNING DOCUMENTS
The governing documents for Hampstead Heath are the Hampstead Heath Act 1871 and the London Government Reorganisation (Hampstead Heath) Order 1989. The governing documents for the Hampstead Heath Trust Fund are the London Government Reorganisation (Hampstead Heath) Order 1989 and a Declaration of Trust dated 31 March 1989. The charities are constituted as charitable trusts.
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 and the Hampstead Heath Trust Fund. 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 members of the City of London Corporation are appointed to the Hampstead Heath, Highgate Wood and Queen’s Park Committee, under the terms of the London Government Reorganisation (Hampstead Heath) Order 1989 relating to the Hampstead Heath Management 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 together with six non City of London Corporation members.
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 for support provided to the charities and are elected by the electorate of the City of London. The Key Committees which had responsibility for directly managing matters related to the Hampstead Heath charity during 2023/24 were as follows:
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Policy and Resources Committee – responsible for allocating resources and administering the charity.
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Finance Committee – responsible for controlling budgets, support costs and other central charges that affect the charity as a whole.
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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.
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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.
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Hampstead Heath, Highgate Wood and Queen’s Park Committee – responsible for the activities undertaken at Hampstead Heath, approving budget allocations for the forthcoming year.
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Corporate Services Committee – responsible for personnel and establishment matters throughout the City of London, including negotiations with the recognised trade unions.
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Natural Environment Board – policy and strategic body in relation to the activities of the City Corporation’s Natural Environment Division within the Environment Department.
All the above committees are ultimately responsible to the Court of Common Council of the City of London. Committee meetings are held in public (except where it is not considered in the charity’s best interest to do so), enabling the decision-making 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 Management Committee was setup 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 Hampstead Heath Consultative Committee. The Consultative Committee was established under the 1989 Order to make such representations and consists of representatives of local organisations, sporting interests, nature conservation, the disabled and those concerned with the Heath.
The charities are consolidated within City’s Estate as the City of London Corporation exercises operational control over their activities. City’s Estate 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:
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Allows City’s Estate 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.
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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. An initial review of governance was undertaken to ensure that the charity is effective in fulfilling its objectives, and further more detailed work is underway as part of a corporate review of the open space charities of which the City Corporation is the trustee Reference is being made to the good practices recommended within the Charity Governance Code, with a focus on ensuring regulatory compliance and the ongoing maintenance of an efficient and effective portfolio of charities that maximise impact for beneficiaries.
ORGANISATIONAL STRUCTURE AND DECISION-MAKING PROCESS
The charity is administered in accordance with their governing instruments and the City Corporation’s own corporate governance and administration framework, including Committee Terms of Reference, Standing Orders, Financial Regulations and Officer
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Scheme of Delegations. These governance documents can be obtained via a request to the email address stated on page 43.
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 Corporation’s agreed corporate governance framework as noted above, backed up by its standards regime.
INDUCTION AND TRAINING OF MEMBERS
The City Corporation makes seminars and briefings on various aspects of its activities, including those concerning the charity, available to its Members and others serving on committees which are involved with the charity to enable them to carry out their duties efficiently and effectively. If suitable seminars or other training options are identified that are relevant to the charity, Members and other committee members are advised of these opportunities.
OBJECTIVES AND ACTIVITIES
Hampstead Heath (charity 1)
The objective of the charity is the preservation 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:
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We protect and conserve the Heath.
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The Heath enriches our lives.
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The Heath is inclusive and welcoming.
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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.
Hampstead Heath Trust Fund (charity 2)
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
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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 & Chief Financial Officer, 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 had a contribution in excess of 13,896 hours of volunteer input for 2023/24.
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 recognition awards.
The above policy applies to staff within the charity’s key management personnel, as defined within note 7 to the financial statements.
The City Corporation is committed to equal opportunities for all employees. An Equality, Diversity and Inclusion Sub-Committee has been established to actively promote equality, diversity and inclusion in service delivery and employment practices. The SubCommittee is responsible for monitoring the delivery of the Equality and Inclusion Action Plan and progress against the Equality Objectives. This also includes addressing the City Corporation’s gender, ethnicity and disability pay gaps.
The City’s Equality Objectives were recently reviewed in accordance with the Equality Act 2010 which requires public bodies to publish equality objectives every four years. The City’s Equality Objectives were approved by Policy and Resources Committee in March 2024 covering the five year period from 2024 to 2029 to coincide with the City’s Corporate Plan for 2024-29.
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”. Donations 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
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scheme and does not consider it necessary to comply with any voluntary code of practice.
There is a donations page on the Hampstead Heath webpage, inviting and enabling the public to make on-line donations to Hampstead Heath Bird and Mammal Shelters campaign, Hampstead Heath Model Boating Pond Island – Wildlife Sanctuary campaign, or general Hampstead Heath Charity.
The charity has received no complaints in relation to fundraising activities in 2023/24 (2022/23: £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 and the Hampstead Heath Trust Fund’s aims and objectives and in planning future activities. The purpose of charity 1 is the preservation in perpetuity of Hampstead Heath as an open space for the recreation and enjoyment of the public; the purpose of charity 2 is the preservation and enhancement of Hampstead Heath as an open space for the recreation and enjoyment of the public.
Consequently, the Trustee considers that Hampstead Heath and Hampstead Heath Trust Fund operate to benefit the general public and satisfiy the public benefit test.
REFERENCE AND ADMINISTRATIVE DETAILS
The administrative details of the charity are stated on page 43.
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ACHIEVEMENTS AND PERFORMANCE
Hampstead Heath’s 2023/24 aims together with their outcomes were:
Maintain Green Flag Award and Green Heritage Accreditation for 2023/24
Hampstead Heath has retained both the Green Flag Award and Green Heritage Site Accreditation in 2023/24.
Hampstead Heath Bathing Ponds Access Project (capital project)
The project is proceeding at all three bathing ponds and will continue into the 2024/25 financial year, with an expected completion date of June 2024.
Parliament Hill athletics track (capital project)
The resurfacing works to the athletics track were successfully completed this year, drawing to a close the £2m project. The track was opened on 17 April 2024.
Parliament Hill Master Plan
Public consultation undertaken on a number of potential improvement projects, and the Charity will explore their feasibility in the coming years.
Golders Hill Park Zoo – stock to reflect Britain and its native species.
Successful introduction of more deer stock, as well as endangered wildcats. The project will continue into 2024/25 with improvements to habitation and new additions to stock.
Review the Café retendering programme with a review of income generation and market values.
This has been delayed and will be progressed during 2024/25. Golders Hill Park Pergola
Temporary works to stabilise the Pergola have been completed by City Surveyors, allowing it to remain open to the public until August 2024.
Hampstead Heath Trust Fund’s 2023/24 aims together with their outcomes :
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 2023/24, the Trust has contributed £1,175,309 towards the preservation and enhancement of Hampstead Heath as an open space for recreation and enjoyment of the public (2022/23: £1,375,547).
PLANS FOR FUTURE PERIODS
Hampstead Heath
The team will focus on delivering the following key projects over the next 12 months.
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Work to Golders Hill Park Pergola – work with City Surveyors to identify restoration needs to retain public access.
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Cafe retendering – complete during 2024/25.
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Management plan – perform mid-term review of Hampstead Heath management strategy.
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Ponds access to be completed - snagging list completed and signed off.
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Budgets - perform as per stated budget and continue to maximise income where possible and appropriate.
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Introduction of ANPR across car parks including implementation.
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Complete recruitment of staff following implementation of staffing restructure.
Hampstead Heath Trust Fund
The charity continues to be affected by the global economic environment and the impact of inflation in the UK during 20234/24. There has been a significant recovery in the market value of the investments held by the charity although and, the current economic environment continues to affect the income generating abilities 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.
During 2023/24, the charity made several strategic adjustments to manage risk and optimize long-term growth. A resilient global economy, as well as inflation that has continued to moderate, has created a supportive environment for equities, and the charity’s portfolio is set to deliver a high calibre of cash flow during 2024/25.
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FINANCIAL REVIEW
Overview of Financial Performance
Income
In 2023/24, the charities total income for the year was £13,248,437 an overall increase of £3,801,440 against the previous year (£9,446,997). The principal source of income was from City of London Corporation’s City’s Estate fund (see below).
Income from Charitable Activities comprised £3,039,529 from fees charged (2022/23: £2,682,386), £232,553 from rents (2022/23: £228,628) and £688 from sales of goods, products and materials (2022/23: £52,255). Grant Income was not received in 2023/24 (2022/23: £46,845). A busy 2023 summer, in part due to good weather, caused a general increase in the use of facilities. The reduction in income from sales compared with the previous year can be explained by a one-off sale taking place during 2022/23.
£9,956.25 in donations were received to support improvements to the playground (2022/23: £32,160). These donations were fully utilised during the year to support the playground improvements project. Donations can also be made on the Hampstead Heath webpage, to either Hampstead Heath Bird and Mammal Shelters campaign or Hampstead Heath Model Boating Pond Island – Wildlife Sanctuary campaign. In total, £4,337 was received during the year (2022/23: £6,993). An amount was held of £18,617 (2022/23: £18,096) as at 31 March 2024 in a restricted fund for ‘Campaign Donations’.
Investment income of £1,360,948 (2022/23: £1,543,905) was received during the year from the Hampstead Heath Trust Fund.
An amount of £8,591,335 (2022/23: £4,841,585) was received from the City of London Corporation’s City’s Estate as a contribution towards the running costs of the charity. The increase compared with 2022/23 is explained by additional funding received from the City to meet the cost of capital expenditure incurred during the year as well as to fund increased staffing, energy and repairs and maintenance costs compared with the previous year following increases in inflation.
Expenditure
Total expenditure for the year was £10,259,936 (2022/23: £9,531,552) with charitable activities expenditure in the year totalling £10,074,296 (2022/23: £9,363,193). The increase in expenditure can be explained by higher costs related to staffing and energy attributable to inflationary price rises as noted above as well as an increase in support costs incurred by the charity. Expenditure on raising funds for the year was £185,640 (2022/23: £168,359).
Funds held
The combined charities total funds held increased by £5,039,534 to £60,281,421 as at 31 March 2024 (2022/23: £55,241,887). The net gain on investments represents the difference in the market value of investments between 1 April 2023 and 31 March 2024 after taking account of any purchases and sales which were made during 2023/24.
Within the total funds held, £36,852,893 (2022/23: £34,973,312) represent permanent and expendable endowment funds.
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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 in accordance with the terms of the endowment.
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 £185,640 was generated in the year (2022/23: £168,358).
Unrestricted funds (General funds) – these funds can be used in accordance with the charitable object at the discretion of the Trustee and include income generated by assets representing unrestricted funds. For the Hampstead Heath Charity this represents surplus of income of £7,313 (2022/23: £3,818). For the Hampstead Heath Trust this represents surplus of income of £902,261 (2022/23: £730,810) over and above expenditure of the Trust distributed annually towards the running costs of the Heath.
The charity’s designated funds consist of unrestricted 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 2024 totalled £22,485,136 (2022/23: £19,466,773). These represent designated funds within the unrestricted fund which represents the Capital fund and the net book value of fixed assets held.
Restricted funds of £33,819 (2022/23: £67,174) were held at year-end for the Parliament Hill Outdoor Gym project and from campaign donations as well as unspent grant monies received to fund the installation of non-turf pitches at Hampstead Heath.
Details of all funds held, including their purposes, are set out within note 15 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:
| Hampstead Heath Trust City of London Charities Pool (part of) |
2023/24 2022/23 £ £ 36,694,482 34,701,620 827,434 769,264 Market Value |
2023/24 2022/23 2023/24 2022/23 % % % % +14.10% +2.18% +8.43% +2.92% +14.18% +2.22% +8.43% +2.92% Returns Benchmark |
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| 37,521,916 35,470,884 |
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2) Hampstead Heath Trust Fund
As at 31 March 2024, the investments held in the Hampstead Heath Trust Fund achieved a return of +14.10% (2022/23: +2.18%) compared to the FTSE All Share Index return of +8.43% (2022/23: +2.92%) Over three years this fund achieved a return of +9.01% (2022/23: +7.41%) compared to the FTSE All Share Index return of +8.05% (2022/23: +5.31%). Over five years, the fund achieved a return of +7.64% (2022/23: +6.25%) compared to the FTSE All Share Index return of +5.44% (2022/23: +4.69%).
| Fund FTSE All Share Fund outperformance |
2023/24 2022/23 3 years 5 years 3 years 5 years +9.01% +7.64% +7.41% +6.25% +8.05% +5.44% +5.31% +4.69% +0.96% +2.20% +2.10% +1.56% |
|---|---|
3) City of London Corporation Charities Pool
As at 31 March 2024, the investments held in the Charities Pool achieved a return of +14.18% (2022/23: +11.06%) compared to the FTSE All Share Index return of +11.06% (2022/23: +13.03%). Over three years this fund achieved a return of +9.03% (2022/23: +7.35%) compared to the FTSE All Share Index return of +8.05% (2022/23: +5.31%). Over five years, the fund achieved a return of +7.62% (2022/23: +6.16%) compared to the FTSE All Share Index of +5.44% (2022/23: +4.69%).
| Fund FTSE All Share |
2023/24 2022/23 3 years 5 years 3 years 5 years +9.03% +7.62% +7.35% +6.16% +8.05% +5.44% +5.31% +4.69% |
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| Fund outperformance | +0.98% +2.18% +2.04% +1.47% |
Reserves
The Hampstead Heath Trust 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 governance arrangements. Due to the governance arrangements in place, a reserves policy is considered by the trustee to be inappropriate.
Donations for Hampstead Heath Charity are now being sought and that these may be carried forward but there is currently no intention to hold them. The charity is further supported by the City of London Corporation out of its City’s Estate Funds.
The Trustee does not consider there to be any material uncertainty around going concern and further detail regarding this is set out on page 23.
Spending Policy
The reserves policy of the charity is that the original endowment of £15 million (now worth £36.9 million) should produce income to cover a proportion of the running costs of Hampstead Heath. The contribution for 2023/24 of £1,175,309 (2022/23: £1,375,547) consists of £1,148,059 from the permanent endowment (2022/23: £1,348,896), and
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income arising from the former T.J. Barratt Trust, which was transferred to the Hampstead Heath Trust Fund in November 2011, of £27,250 (2022/23: £26,651).
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 £1,175,309 for 2023/24 from the permanent endowment was met entirely from net income and no further allocation from the permanent endowment reserves was required.
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Principal Risks and Uncertainties
The charities are committed to a programme of risk management as an element of their strategy to preserve the charities assets. In order to embed sound practice the senior leadership team ensures that risk management policies are applied, that there is an ongoing 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 |
|---|---|
| Outbreak of fire in woodland/heathland |
Staff are made aware of extreme weather events and ‘Trigger Events.' The Emergency Action Plan and Fire safety audits are reviewed and updated annually. Signage and social media messaging is used to remind visitors not to light fires or barbecues |
| Maintenance of buildings and equipment |
Inspections of operational property are managed, and records kept, by the City Surveyor's Department (CSD). Building defects are reported to CSD's Facilities Management Team to address. Longer term repairs and maintenance are managed through the Cyclical Works Programme (CWP), and where significant costs are likely to be incurred over and above the CWP, additional funding is sought through capital bids. |
| Climate and Weather | Met Office weather alerts are monitored and cascaded. Site plans are reviewed annually or following an incident, if appropriate. In accordance with the Extreme Weather Protocol, sites are closed during extreme weather events. |
| Recruitment and retention of staff |
A new organisational structure is being implemented. This will include recruitment to several vacancies and the development of a talent management programme. |
| Delivery of capital projects |
Liaise with internal departments to secure funding for capital projects. |
| Budget Reduction and income loss |
Monitor budgets monthly and consider income generation opportunities. |
| Long term damage to site |
Nature recovery/ground restoration works continue as part of the Annual Works Programme. Social media messaging is used to encourage visitors to use the site responsibly. |
| Ensuring the Health and Safety of staff, contractors, visitors, and volunteers |
Proactive Health and Safety management, including audits, inspections, communications, and staffing. Staff patrol non-lifeguarded ponds, particularly during extreme weather conditions. These ponds are clearly signed to emphasise that people should not swim in them. Stewards are available during operating hours at the ponds and Lido to promote safety. |
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| Hampstead Heath Water bodies including Bathing Ponds |
Water bodies including Lifeguards receive full training. Rangers regularly check signage, gates and safety equipment at water bodies. |
|---|---|
| Maintenance of water bodies |
A Ponds and Wetlands Plan includes a series of recommendations which are implemented as appropriate. |
| Tree failure | Tree management systems are place, including regular inspections to identify any trees with structural or health issues. Parts of the Heath or Golders Hill Park are closed in extreme weather conditions. |
| Plant and Tree Disease |
Tree provenance is considered, and planting stock is sourced in accordance with best practice guidance. Targeted caterpillar spraying and nest removal is carried out to reduce Oak Processionary Moth. Staff are vigilant and inspect for other pests and tree diseases. |
Risks which are specific to Hampstead Heath Trust Fund:
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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:
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select suitable accounting policies and then apply them consistently.
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make judgements and accounting estimates that are reasonable and prudent.
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state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements.
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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:
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there is no relevant audit information of which the charity’s auditors are unaware; and
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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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Adopted and signed for on behalf of the Trustee.
Deputy Henry Nicholas Almroth Colthurst Chairman, Finance Committee City of London Corporation
Deputy Randall Keith Anderson Deputy Chairman, Finance Committee City of London Corporation
27[th] November 2024
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INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEE OF HAMPSTEAD HEATH INCORPORATING HAMPSTEAD HEATH TRUST FUND
Opinion
We have audited the financial statements of Hampstead Heath incorporating Hampstead Heath Trust Fund for the year ended 31 March 2024 which comprise the Statement of Financial Activities, Balance Sheet and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
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give a true and fair view of the state of the charity’s affairs as at 31 March 2024 and of its incoming resources and application of resources for the year then ended;
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• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
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have been prepared in accordance with the requirements of the Charities Act 2011.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charities in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the Trustee's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the Trustee with respect to going concern are described in the relevant sections of this report.
Other information
The Trustee is responsible for the other information contained within the annual report. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge
17
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 this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:
-
the information given in the financial statements is inconsistent in any material respect with the Trustee’s report; or
-
sufficient and proper accounting records have not been kept by the charity; or
-
the financial statements are not in agreement with the accounting records and returns; or
-
we have not received all the information and explanations we require for our audit.
Responsibilities of Trustee
As explained more fully in the Trustee’s responsibilities statement set out on page 14 and 15, 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 charities ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustee either intends to liquidate the charity or to cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial statements
We have been appointed as auditor under section 144 of the Charities Act 2011, and report in accordance with the Acts 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.
Details of the extent to which the audit was considered capable of detecting irregularities, including fraud and non-compliance with laws and regulations are set out below.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
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Extent to which the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We identified and assessed the risks of material misstatement of the financial statements from irregularities, whether due to fraud or error, and discussed these between our audit team members. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and appropriate to provide a basis for our opinion.
We obtained an understanding of the legal and regulatory frameworks within which the charity operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Charities Act 2011 together with the Charities SORP (FRS102) 2019. We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items.
In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the charities ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the charities for fraud. The laws and regulations we considered in this context for the UK operations were General Data Protection Regulation (GDPR), Anti-fraud, bribery and corruption legislation, Health and safety legislation, and Employment legislation.
Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Trustee and other management and inspection of regulatory and legal correspondence, if any.
We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within the timing of recognition of income, and the override of controls by management. Our audit procedures to respond to these risks included enquiries of management, internal audit, legal counsel and the Audit & Risk Committee about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, reviewing accounting estimates for biases, reviewing regulatory correspondence with the Charity Commission, and reading minutes of meetings of those charged with governance.
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.
Use of our report
This report is made solely to the charities Trustee, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charities 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
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charity and the charity’s Trustee as a body, for our audit work, for this report, or for the opinions we have formed.
Crowe U.K. LLP Statutory Auditor 55 Ludgate Hill, London, EC4M 7JW
29 November 2024
Crowe U.K. 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.
20
STATEMENT OF FINANCIAL ACTIVITIES
FOR THE YEAR ENDED 31 MARCH 2024
----- Start of picture text -----
Unrestricted Restricted Endowment 2023/24 2022/23
Notes Funds Funds Funds Total Funds Total Funds
£ £ £ £ £
Income and endowments from:
Voluntary activities 2 9,001 14,383 - 23,384 51,393
Charitable activities 3 3,272,770 - - 3,272,770 3,010,114
Grant from City of London Corporation 4 8,591,335 - - 8,591,335 4,841,585
Investments 5 1,360,948 - - 1,360,948 1,543,905
Total income and endowments 13,234,054 14,383 - 13,248,437 9,446,997
Expenditure on:
Raising funds 6 14,189 171,451 185,640 168,359
Charitable activities: -
Preservation of Hampstead Heath 6 10,026,557 47,738 - 10,074,295 9,363,193
Total expenditure 10,040,746 47,738 171,451 10,259,935 9,531,552
Net gains on investments 11 - - 2,051,032 2,051,032 585,545
Net income 3,193,308 (33,355) 1,879,581 5,039,534 500,990
Net movement in funds 3,193,308 (33,355) 1,879,581 5,039,534 500,990
Reconciliation of funds:
Total funds brought forward 15 20,201,401 67,174 34,973,312 55,241,887 54,740,897
Total funds carried forward 15 23,394,709 33,819 36,852,893 60,281,421 55,241,887
----- End of picture text -----
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 23 to 43 form part of these financial statements.
21
BALANCE SHEET
AS AT 31 MARCH 2024
| Notes | 2024 | 2023 | |
|---|---|---|---|
| Total | Total | ||
| £ | £ | ||
| Fixed assets: | |||
| Tangible assets | 10 | 22,481,805 | 19,463,442 |
| Fixed asset investments | 11 | 36,873,090 | 34,188,534 |
| Total fixed assets | 59,354,895 | 53,651,976 | |
| Current assets | |||
| Debtors | 12 | 461,997 | 1,926,283 |
| Investments | 11 | 471,518 | 1,105,042 |
| Cash at bank and in hand | 1,211,992 | 883,927 | |
| Total current assets | 2,145,507 | 3,915,252 | |
| Creditors: Amounts falling due within one year | 13 | (1,218,981) | (2,325,341) |
| Net current assets | 926,526 | 1,589,911 | |
| Total assets less current liabilities | 60,281,421 | 55,241,887 | |
| The funds of the charity: | |||
| Endowment funds | 15 | 36,852,893 | 34,973,312 |
| Restricted income funds | 15 | 33,819 | 67,174 |
| Unrestricted income funds | 15 | 23,394,709 | 20,201,401 |
| Total funds | 60,281,421 | 55,241,887 |
The notes on pages 23 to 43 form part of these financial statements
Approved and signed on behalf of the Trustee.
Caroline Al-Beyerty
Chamberlain of London and Chief Financial Officer
27[th] November 2024
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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 charities.
(a) Basis of preparation
The financial statements of the charity, 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) 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. Any deficit is funded from the City of London Corporation’s City’s Estate. On an annual basis, a medium-term financial forecast is prepared for City’s Estate, 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 potential ongoing impact of the Covid-19 pandemic and current high inflationary pressures on the financial position, including future income levels and planned expenditure and the liquidity of the charity 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.
(c) 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 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.
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As one of the key judgements, the Trustee will include fixed investments and their market valuations as key accounting estimates in their consideration of the operating of the charities. The Trustee 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.
(d) Statement of Cash Flows
As per section 14.1 of the Charities SORP (the exemption in FRS102 (paragraph 1.12b)) 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 Estate Annual Report and Financial Statements 2024 which is publicly available at www.cityoflondon.gov.uk.
(e) Income
All income is included in the Statements of Financial Activities (SOFA) when the charities are 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 Estate 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.
(f) 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 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. Costs incurred for the administration of the charity are recharged by the Corporation and these costs are included within support costs.
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(g) 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.
(h) 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 Estate 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 £49.9m as at 31 March 2024 (£142.6m as at 31 March 2023). 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 2022, using the projected unit method. The 31 March 2022 valuation was carried out in 2022/23 and has set contribution rates for the period 01 April 2023 to 31 March 2026 at 21%. Contribution rates adopted for the financial years 2020/21 2021/22 and 2022/23 were set at 21%.
(i) 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.
(j) 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 Hampstead Heath 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.
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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* |
| Vehicles | up to 10 |
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.
(k) 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 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.
(l) 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.
(m) 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.
(n) Funds structure
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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 funds – these funds can be used in accordance with the charitable objects at the discretion of the Trustee and include income generated by assets representing unrestricted funds. Specifically for the Hampstead Heath Trust, this represents the net undistributed income and for Hampstead Heath the surplus unrestricted donations.
Designated funds – these are funds set aside by the Trustee out of unrestricted funds for a specific purpose.
(o) 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 Estate.
2. INCOME FROM VOLUNTARY ACTIVITIES
Charity 1 – Hampstead Heath
| Unrestricted funds £ 9,001 |
Restricted funds £ 14,383 |
Total funds Total funds 2023/24 2022/23 £ £ |
|
|---|---|---|---|
| Donations and legacies | 23,384 51,393 |
3. INCOME FROM CHARITABLE ACTIVITIES
| Charity 1 - Hampstead Heath | Unrestricted | Total | Total |
|---|---|---|---|
| funds | funds | ||
| 2023/24 | 2023/24 | 2022/23 | |
| £ | £ | £ | |
| Charges for use of facilities | 3,039,529 | 3,039,529 | 2,682,386 |
| Sales | 688 | 688 | 52,255 |
| Rental income | 232,553 | 232,553 | 228,628 |
| Grant income | - | - | 46,845 |
| Total | 3,272,770 | 3,272,770 | 3,010,114 |
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4. INCOME FROM THE CITY OF LONDON CORPORATION
----- Start of picture text -----
Charity 1 - Hampstead Heath Unrestricted Unrestricted
funds funds
2023/24 2022/23
£ £
Revenue and capital grants from City of London Corporation 8,591,335 4,841,585
----- End of picture text -----
5. INCOME FROM INVESTMENTS
----- Start of picture text -----
Charity 2 - Hampstead Heath Trust Fund Unrestricted Unrestricted
funds funds
2023/24 2022/23
£ £
Investment income 1,360,911 1,543,942
Interest 37 (37)
Total 1,360,948 1,543,905
----- End of picture text -----
Income for the year included:
Donations – being amount received from the public at the ponds and paddling pool as well as donations received for the playground improvements campaign. 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. This is in addition to unrestricted donations received by the charity.
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 Estate 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.
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6. Expenditure
Expenditure on raising funds
Charity 2 – Hampstead Heath Trust Fund
----- Start of picture text -----
Endowment Unrestricted
funds funds Total funds Direct Support Total
Direct costs Support costs 2023/24 costs costs 2022/23
£ £ £ £ £ £
Investment management fees 171,451 6,554 178,005 163,923 6,002 169,925
Interest payable - 7,635 7,635 - (1,566) (1,566)
Total 171,451 14,189 185,640 163,923 4,436 168,359
----- End of picture text -----
In line with the Statement of Recommended Practice (SORP) for charities, investment management fees incurred by the Hampstead Heath Trust Fund are charged to the charity’s endowment fund with any of the support costs met by the charity’s unrestricted fund.
Expenditure on charitable activities Charity 1 – Hampstead Heath
----- Start of picture text -----
Unrestricted Restricted Unrestricted
Total
funds funds funds Direct Support Total
Direct costs Support costs 2023/24 costs costs 2022/23
£ £ £ £ £ £ £
Preservation of Hampstead Heath 7,256,723 47,738 1,594,526 8,898,987 6,170,541 1,817,105 7,987,646
Total 7,256,723 47,738 1,594,526 8,898,987 6,170,541 1,817,105 7,987,646
----- End of picture text -----
Charity 2 – Hampstead Heath Trust Fund
----- Start of picture text -----
Unrestricted Restricted Unrestricted
Total
funds funds funds Direct Support Total
Direct costs Support costs 2023/24 costs costs 2022/23
£ £ £ £ £ £ £
Preservation of Hampstead Heath 1,175,309 - - 1,175,309 1,375,547 - 1,375,547
Total 1,175,309 - - 1,175,309 1,375,547 - 1,375,547
----- End of picture text -----
Charities 1 & 2 – total
| Unrestricted funds |
Restricted funds |
Unrestricted funds |
Total | Direct | Support | Total | |
|---|---|---|---|---|---|---|---|
| Direct | costs | Support costs | 2023/24 | costs | costs | 2022/23 | |
| £ | £ | £ | £ | £ | £ | £ | |
| Preservation of Hampstead Heath | 8,432,032 | 47,738 | 1,594,526 | 10,074,296 | 7,546,088 | 1,817,105 | 9,363,193 |
| Total | 8,432,032 | 47,738 | 1,594,526 | 10,074,296 | 7,546,088 | 1,817,105 | 9,363,193 |
Charitable activities
Expenditure on the charitable activities includes labour, premises costs, equipment, materials and other supplies and services incurred in the running of Hampstead Heath.
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Auditor’s remuneration and fees for other services
Crowe U.K. LLP are the auditors of the City of London’s City’s Estate Fund and all of the different charities of which it is Trustee. In 2023/24 an audit fee of £6,930 was recharged (2022/23: £8,500). No other services were provided to the charity by its auditors during the year (2022/23: £nil).
7. 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:
Charity 1 – Hampstead Heath
| Charitable activities |
Governance | 2023/24 | 2022/23 | |
|---|---|---|---|---|
| £ | £ | £ | £ | |
| Department: | ||||
| Chamberlain | 144,096 | - | 144,096 | 201,589 |
| Comptroller & City Solicitor | - | - | - | 39,017 |
| Town Clerk | - | 146,683 | 146,683 | 192,443 |
| City Surveyor | 329,564 | - | 329,564 | 316,311 |
| Natural Environment directorate | 582,626 | - | 582,626 | 748,033 |
| Other governance & support costs | 91,962 | 6,930 | 98,892 | 105,891 |
| Digital Services | 292,665 | - | 292,665 | 213,821 |
| Sub-total | 1,440,913 | 153,613 | 1,594,526 | 1,817,105 |
| Reallocation of governance costs | 153,613 | (153,613) | - | - |
| Total | 1,594,526 | - | 1,594,526 | 1,817,105 |
Charity 2 – Hampstead Heath Trust Fund
| Raising | ||||
|---|---|---|---|---|
| funds | Governance | 2023/24 | 2022/23 | |
| £ | £ | £ | £ | |
| Chamberlain | 14,189 | - | 14,189 | 4,436 |
| Total | 14,189 | - | 14,189 | 4,436 |
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Charities 1 & 2 – total
| Raising | Charitable | ||||
|---|---|---|---|---|---|
| funds | activities | Governance | 2023/24 | 2022/23 | |
| £ | £ | £ | £ | £ | |
| Department: | |||||
| Chamberlain | 14,189 | 144,096 | - | 158,285 | 206,025 |
| Comptroller & City Solicitor | - | - | - | - | 39,017 |
| Town Clerk | - | - | 146,683 | 146,683 | 192,443 |
| City Surveyor | - | 329,564 | - | 329,564 | 316,311 |
| Natural Environment directorate | - | 582,626 | - | 582,626 | 748,033 |
| Other governance & support costs | - | 91,962 | 6,930 | 98,892 | 105,891 |
| Digital Services | - | 292,665 | - | 292,665 | 213,821 |
| Sub-total | 14,189 | 1,440,913 | 153,613 | 1,608,715 | 1,821,541 |
| Reallocation of governance costs | - | 153,613 | (153,613) | - | - |
| Total | 14,189 | 1,594,526 | - | 1,608,715 | 1,821,541 |
All support costs are undertaken from unrestricted funds. Governance costs are allocated based on a proportion of officer time spent on the administration of Trustee and Committee related meetings.
8. DETAILS OF STAFF COSTS
Charity 1 – Hampstead Heath
All staff that work on behalf of the charity are employed by the City Corporation. The average number of people directly undertaking activities on behalf of the charity during the year was 88 (2022/23: 83).
Amounts paid in respect of employees directly undertaking activities on behalf of the charity were as follows:
| 2023/24 | 2022/23 | |
|---|---|---|
| £ | £ | |
| Salaries and wages | 4,285,788 | 3,965,909 |
| National Insurance costs | 415,087 | 405,105 |
| Employer'spension contributions | 703,165 | 639,484 |
| Total emoluments of employees | 5,404,040 | 5,010,498 |
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 0.0 (2022/23: 1.0).
| 2023/24 | 2022/23 | |||
|---|---|---|---|---|
| £60,000 | - £69,999 | 1.0 | 1.0 | |
| Total | 1.0 | 1.0 |
31
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 Natural Environment who manages the seven open spaces for which the City of London Corporation us a charity trustee. 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 £40,309 (2022/23: £121,711). No members received any remuneration, with directly incurred expenses reimbursed, if claimed. Expenses totalling £nil were claimed in 2023/24 (2022/23: £nil).
9. HERITAGE ASSETS
Charity 1 – Hampstead Heath
Since 1871 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(j), 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 Executive Director Environment at the principal address as stated on page 42.
10. TANGIBLE FIXED ASSETS
Charity 1 – Hampstead Heath
| Buildings | Infrastructure | Vehicles | Equipment | Total | |
|---|---|---|---|---|---|
| £ | £ | £ | £ | £ | |
| Cost | |||||
| At 1 April 2023 | 1,257,724 | 20,114,667 | - | 272,479 | 21,644,870 |
| Additions | - | 3,139,017 | 94,197 | - | 3,233,214 |
| At 31 March 2024 | 1,257,724 | 23,253,684 | 94,197 | 272,479 | 24,878,084 |
| Depreciation | |||||
| At 1 April 2023 | 243,588 | 1,720,957 | - | 216,883 | 2,181,428 |
| Charge for the year | 31,641 | 178,849 | 4,361 | 214,851 | |
| At 31 March 2024 | 275,229 | 1,899,806 | - | 221,244 | 2,396,279 |
| Net book value | |||||
| At 31 March 2024 | 982,495 | 21,353,878 | 94,197 | 51,235 | 22,481,805 |
| At 31 March 2023 | 1,014,136 | 18,393,710 | - | 55,596 | 19,463,442 |
32
11. FIXED ASSET INVESTMENTS
Charity 2 – Hampstead Heath Trust Fund
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:
| Total 2024 | Total 2023 | |
|---|---|---|
| £ | £ | |
| Long Term Fixed Investments | ||
| Market value 1 April | 34,188,534 | 34,547,175 |
| Additions | 7,797,461 | 11,470,392 |
| Disposals | (7,163,937) | (12,414,578) |
| (Loss)/gain for theyear | 2,051,032 | 585,545 |
| Market value 31 March | 36,873,090 | 34,188,534 |
| Short Term Investments | ||
| Cash held by fund managers | 471,518 | 1,105,042 |
| Other Cash Balances | 177,308 | 177,308 |
| Short Term Investments | 648,826 | 1,282,350 |
| Total investments 31 March | 37,521,916 | 35,470,884 |
| Cost 31 March | 32,144,545 | 32,831,082 |
Total investments as at 31 March are analysed between long term and short-term investments as follows:
| 2024 | 2023 | |
|---|---|---|
| £ | £ | |
| Long term | 36,873,090 | 34,188,534 |
| Short term | 648,826 | 1,282,350 |
| Total | 37,521,916 | 35,470,884 |
The geographical spread of listed investments as at 31 March was as follows:
| Held in the | Held outside | Total at 31 | Held in the | Held outside the | Total at 31 | |
|---|---|---|---|---|---|---|
| UK | the UK | March 2024 | UK | UK | March 2023 | |
| £ | £ | £ | £ | £ | £ | |
| Unit trusts | 1,389,982 | - | 1,389,982 | 1,149,524 | - | 1,149,524 |
| Equities | 31,836,971 | 3,646,137 | 35,483,108 | 28,495,840 | 4,543,170 | 33,039,010 |
| Cash | 648,826 | - | 648,826 | 1,282,350 | - | 1,282,350 |
| Total | 33,875,779 | 3,646,137 | 37,521,916 | 30,927,714 | 4,543,170 | 35,470,884 |
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12. DEBTORS – AMOUNTS DUE WITHIN ONE YEAR
Charity 1 - Hampstead Heath
| Rental debtors Prepayments and accrued income Recoverable VAT Other debtors Total |
2024 2023 £ £ 26,326 18,825 46,577 49,081 26,920 3,700 42,008 36,155 141,831 107,761 |
|---|---|
Charity 2 - Hampstead Heath Trust Fund
| Sundry debtors Other debtors Total |
2024 2023 £ £ - 7,579 320,167 1,810,943 320,167 1,818,522 |
|---|---|
Charities 1 & 2 – total
| Rental debtors Prepayments and accrued income Recoverable VAT Sundry debtors Other debtors |
2024 2023 £ £ 26,326 18,825 46,577 49,081 26,920 3,700 - 7,579 362,175 1,847,098 |
|---|---|
| Total | 461,997 1,926,283 |
Other debtors consist of non-property related debtors of £42,008 (2022/23: £36,155) and dividends of £320,167 receivable from the fund manager (2022/23: £1,810,943).
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13. CREDITORS – AMOUNTS DUE WITHIN ONE YEAR
Charity 1 - Hampstead Heath
| Trade creditors Accruals Deferred income Rent deposits VAT liability Other creditors Total |
2024 2023 £ £ 81,878 106,921 218,368 185,133 231,655 235,157 15,425 15,425 41,277 20,634 543,450 176,788 1,132,053 740,058 |
|---|---|
Charity 2 - Hampstead Heath Trust Fund
| Bank overdraft Other creditors |
2024 2023 £ £ 41,433 1,544,157 45,495 41,126 |
|---|---|
| Charities 1 & 2 – total Bank overdraft Trade creditors Accruals Deferred income Rent deposits VAT liability Other creditors Total |
2024 2023 £ £ 41,433 1,544,157 81,878 106,921 218,368 185,133 231,655 235,157 15,425 15,425 41,277 20,634 588,945 217,914 86,928 1,585,283 |
| Total | 1,218,981 2,325,341 |
| Deferred income analysis within creditors: Balance at 1 April Amounts released to income Amounts deferred in the year |
2024 2023 £ £ 235,157 121,368 (235,157) (121,368) 231,655 235,157 |
| Balance at 31 March | 231,655 235,157 |
Deferred income relates to rental income as well as season ticket income for the use of facilities received in advance for periods after the year-end. Other creditors consist of sundry creditors.
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14. ANALYSIS OF NET ASSETS BY FUND
Charity 1 – Hampstead Heath
| At 31 March 2024 | Unrestricted Funds | Unrestricted Funds | Restricted | ||
|---|---|---|---|---|---|
| General | Designated | Funds | Total at 31 | Total at 31 | |
| Funds | Funds | March 2024 | March 2023 | ||
| £ | £ | £ | £ | £ | |
| Tangible Assets | - | 22,481,805 | - | 22,481,805 | 19,463,442 |
| Current Assets | 1,139,365 | 3,331 | 33,819 | 1,176,515 | 814,381 |
| Current Liabilities | (1,132,053) | - | - | (1,132,053) | (740,058) |
| Total | 7,313 | 22,485,136 | 33,819 | 22,526,268 | 19,537,765 |
| At 31 March 2023 | Unrestricted Funds | Restricted | |||
| General | Designated | Funds | Total at 31 | Total at 31 | |
| Funds | Funds | March 2023 | March 2022 | ||
| £ | £ | £ | £ | £ | |
| Tangible Assets | - | 19,463,442 | - | 19,463,442 | 19,607,668 |
| Current Assets | 743,876 | 3,331 | 67,174 | 814,381 | 755,739 |
| Current Liabilities | (740,058) | - | - | (740,058) | (741,088) |
| Total | 3,818 | 19,466,773 | 67,174 | 19,537,765 | 19,622,319 |
Charity 2 – Hampstead Heath Trust Fund
| At 31 March 2024 | Unrestricted General funds |
Endowment funds |
Total at 31 March 2024 |
Total at 31 March 2023 |
|---|---|---|---|---|
| £ | £ | £ | £ | |
| Fixed assets - investments | (66,732) | 36,939,822 | 36,873,090 | 34,188,534 |
| Current assets | 968,993 | - | 968,993 | 3,100,871 |
| Current liabilities | - | (86,928) | (86,928) | (1,585,283) |
| Total | 902,261 | 36,852,894 | 37,755,155 | 35,704,122 |
| At 31 March 2023 | Unrestricted General funds |
Endowment funds |
Total at 31 March 2023 |
Total at 31 March 2022 |
| £ | £ | £ | £ | |
| Fixed assets - investments | 34,188,534 | 34,188,534 | 34,547,175 | |
| Current assets | 730,810 | 2,370,061 | 3,100,871 | 691,225 |
| Current liabilities | - | (1,585,283) | (1,585,283) | (119,822) |
| Total | 730,810 | 34,973,312 | 35,704,122 | 35,118,578 |
36
Charities 1 & 2 – total
----- Start of picture text -----
At 31 March 2024 Unrestricted Funds
Restricted Endowment
General Designated Funds Funds Total at 31 Total at 31
Funds Funds March 2024 March 2023
£ £ £ £ £ £
Tangible Assets - 22,481,805 - - 22,481,805 19,463,442
Fixed Asset Investments (66,732) - - 36,939,822 36,873,090 34,188,534
Current Assets 2,108,357 3,331 33,819 - 2,145,507 3,915,252
Current Liabilities (1,132,053) - - (86,928) (1,218,981) (2,325,341)
Total 909,573 22,485,136 33,819 36,852,894 60,281,421 55,241,887
----- End of picture text -----
| At 31 March 2023 | Unrestricted Funds | Unrestricted Funds | Restricted | Endowment | ||
|---|---|---|---|---|---|---|
| General | Designated | Funds | Funds | Total at 31 | Total at 31 | |
| Funds | Funds | March 2023 | March 2022 | |||
| £ | £ | £ | £ | £ | £ | |
| Tangible Assets | - | 19,463,442 | - | 19,463,442 | 19,607,668 | |
| Fixed Asset Investments | - | - | - | 34,188,534 | 34,188,534 | 34,547,175 |
| Current Assets | 1,474,686 | 3,331 | 67,174 | 2,370,061 | 3,915,252 | 1,446,964 |
| Current Liabilities | (740,058) | - | - | (1,585,283) | (2,325,341) | (860,910) |
| Total | 734,628 | 19,466,773 | 67,174 | 34,973,312 | 55,241,887 | 54,740,897 |
Expendable endowment movements 2011-2024
| 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 |
| 2021-2022 | 578,078 | 27,440 | 605,518 | 177,308 | 782,826 |
| 2022-2023 | 605,518 | (13,562) | 591,956 | 177,308 | 769,264 |
| 2023-2024 | 591,956 | 58,170 | 650,126 | 177,308 | 827,434 |
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15. MOVEMENT IN FUNDS
Charity 1 – Hampstead Heath
| Total as at 1 | Total as at 31 | ||||
|---|---|---|---|---|---|
| At 31 March 2024 | April 2023 | Income | Expenditure | Transfers | March 2024 |
| £ | £ | £ | £ | £ | |
| Restricted funds: Campaign Donations Parliament Hill Outdoor Gym Installation of Non-Turf Pitches Total restricted funds |
18,096 2,233 46,845 67,174 |
14,383 - - 14,383 |
(13,862) - (33,876) (47,738) |
- - - - |
18,617 2,233 12,969 33,819 |
| - | |||||
| Unrestricted funds: | |||||
| General funds | 3,818 | 8,639,894 | (8,636,399) | - | 7,313 |
| Designated funds: | |||||
| Tangible fixed assets | 19,463,442 | 3,233,212 | (214,849) | - | 22,481,805 |
| Capital fund | 3,331 | - | - | - | 3,331 |
| Total unrestricted funds | 19,470,591 | 11,873,106 | (8,851,248) | - | 22,492,449 |
| Total funds | 19,537,765 | 11,887,489 | (8,898,986) | - | 22,526,268 |
| Total as at 1 | Total as at 31 | ||||
| At 31 March 2023 | April 2022 | Income | Expenditure | Transfers | March 2023 |
| £ | £ | £ | £ | £ | |
| Restricted funds: | |||||
| Campaign Donations | 7,352.0 | 42,904 | (32,160.0) | - | 18,096 |
| Parliament Hill Outdoor Gym | 2,233.0 | 0 | - | - | 2,233 |
| Installation of Non-Turf Pitches | - | 46,845 | - | - | 46,845 |
| Total restricted funds | 9,585 | 89,749 | (32,160) | - | 67,174 |
| Unrestricted funds: | |||||
| General funds | 1,735 | 7,751,373 | (7,749,290) | - | 3,818 |
| Designated funds: | |||||
| Tangible fixed assets | 19,607,668 | 61,970 | (206,196) | - | 19,463,442 |
| Capital fund | 3,331 | - | - | - | 3,331 |
| Total unrestricted funds | 19,612,734 | 7,813,343 | (7,955,486) | - | 19,470,591 |
| Total funds | 19,622,319 | 7,903,092 | (7,987,646) | - | 19,537,765 |
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Charity 2 – Hampstead Heath Trust Fund
| Total as at | ||||||
|---|---|---|---|---|---|---|
| Total as at 1 | Gains & | 31 March | ||||
| At 31 March 2024 | April 2023 | Income | Expenditure | (losses) | Transfers | 2024 |
| £ | £ | £ | £ | £ | £ | |
| Endowment funds: | ||||||
| Expendable endowment | 769,264 | - | - | 58,170 | - | 827,434 |
| Permanent endowment | 34,204,048 | - | (171,451) | 1,992,862 | - | 36,025,459 |
| Total endowment funds | 34,973,312 | - | (171,451) | 2,051,032 | - | 36,852,893 |
| Unrestricted funds: | ||||||
| General funds | 730,810 | 1,360,948 | (1,189,497) | - | - | 902,261 |
| Total funds | 35,704,122 | 1,360,948 | (1,360,948) | 2,051,032 | - | 37,755,154 |
| Total as at | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Total as at 1 | Gains & | 31 March | ||||||||
| At 31 March 2023 | April 2022 | Income | Expenditure | (losses) | Transfers | 2023 | ||||
| £ | £ | £ | £ | £ | £ | |||||
| Endowment funds: | ||||||||||
| Expendable endowment | 782,826 | - | - | (13,562) | - | 769,264 |
||||
| Permanent endowment | 33,768,864 | - | (163,923) | 599,107 | - | 34,204,048 | ||||
| Total endowment funds | 34,551,690 | - | (163,923) | 585,545 | - | 34,973,312 | ||||
| Unrestricted funds: | ||||||||||
| General funds | 566,888 | 1,543,905 | (1,379,983) | - | - | 730,810 |
||||
| Total funds | 35,118,578 | 1,543,905 | (1,543,906) | 585,545 | - | 35,704,122 | ||||
| Charities 1 & 2 – total | ||||||||||
| Total as at 1 | Gains & | Total as at 31 | ||||||||
| At 31 March 2024 | April | 2023 | Income | Expenditure | (losses) | Transfers | March 2024 | |||
| £ | £ | £ | £ | £ | £ | |||||
| Endowment funds: | ||||||||||
| Permanent endowment funds | 34,204,048 | - | (171,451) | 1,992,862 | - | 36,025,459 | ||||
| Expendable endowment funds | 769,264 | - | - | 58,170 | - | 827,434 | ||||
| Total endowment funds | 34,973,312 | - | (171,451) | 2,051,032 | - | 36,852,893 | ||||
| Restricted funds: | ||||||||||
| Campaign Donations | 18,096 | 14,383 | (13,862) | - | - |
18,617 | ||||
| Parliament Hill Outdoor Gym | 2,233 | - | - | - | - |
2,233 | ||||
| Installation of Non-Turf Pitches | 46,845 | - | (33,876) | - | 12,969 | |||||
| Total restricted funds | 67,174 | 14,383 | (47,738) | - | - |
33,819 | ||||
| Unrestricted funds: | ||||||||||
| General funds | 734,628 | 10,000,842 | (9,825,897) | - | - |
909,573 | ||||
| Designated funds: | ||||||||||
| Tangible fixed assets | 19,463,442 | 3,233,212 | (214,849) | - | - |
22,481,805 | ||||
| Capital fund | 3,331 | - | - | - | - |
3,331 | ||||
| Total unrestricted funds | 20,201,401 | 13,234,054 | (10,040,746) | - | - |
23,394,709 | ||||
| Total funds | 55,241,887 | 13,248,437 | (10,259,935) | 2,051,032 | - | 60,281,421 |
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| Total as at 1 | Gains & | Total as at 31 | ||||
|---|---|---|---|---|---|---|
| At 31 March 2023 | April 2022 | Income | Expenditure | (losses) | Transfers | March 2023 |
| £ | £ | £ | £ | £ | £ | |
| Endowment funds: | ||||||
| Permanent endowment funds | 33,768,864 | 0 | (163,923) | 599,107 | 0 | 34,204,048 |
| Expendable endowment funds | 782,826 | - | - | (13,562) | - | 769,264 |
| Total endowment funds | 34,551,690 | - | (163,923) | 585,545 | - | 34,973,312 |
| Restricted funds: | ||||||
| Campaign Donations | 7,352.0 | 42,904 | (32,160.0) | - | 18,096 | |
| Parliament Hill Outdoor Gym | 2,233.0 | 0 | - | - | 2,233 | |
| Installation of Non-Turf Pitches | - | 46,845 | - | - | 46,845 | |
| Total restricted funds | 9,585 | 89,749 | (32,160) | - | - | 67,174 |
| Unrestricted funds: | ||||||
| General funds | 568,623 | 9,295,278 | (9,129,273) | - | - | 734,628 |
| Designated funds: | ||||||
| Tangible fixed assets | 19,607,668 | 61,970 | (206,196) | - | - | 19,463,442 |
| Capital fund | 3,331 | - | - | - | - | 3,331 |
| Total unrestricted funds | 20,179,622 | 9,357,248 | (9,335,469) | - | - | 20,201,401 |
| Total funds | 54,740,897 | 9,446,997 | (9,531,552) | 585,545 | - | 55,241,887 |
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 2023/24 the surplus was £185,640 (2022/23: £168,359). 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 the creation of a new outdoor gym at Parliament Hill. This is in addition to a grant received from the England and Wales Cricket Board for the supply and installation of non turf pitches at Parliament Hill and the Heath Extension as well as unspent campaign donations.
Purposes of designated funds
Designated funds have been set aside by the Trustee for the following purposes:
40
-
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 2024 the net book value of fixed assets relating to direct charitable purposes amounted to £22,481,805 (2022/23: £19,463,442). There were additions of £3,233,214 during the year relating to the Parliament Hill Athletics Track Resurfacing, Swimming Facilities and Mixed Pond Rewire projects as well as for the purchase of vehicles acquired during 2023/24.
-
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.
16. 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 7.
The charity is consolidated within the accounts of City’s Estate, 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 Estate, whose place of business is Guildhall, London EC2P 2EJ. The principal purpose of City’s Estate 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 generations. The financial statements of City’s Estate 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.
41
Related party Connected party 2023/24 2022/23 Detail of transaction £ £ The City of London Corporation's City's The City of London Corporation is the Trustee Cash meets the deficit on running City of London Corporation for the charity 8,591,335 4,841,585 expenses of the charity (nil) (nil) Administrative services provided for the 1,594,526 1,817,105 charity (nil) (nil) Distribution from the Charities Pool and 19,650 23,405 interest receivable on cash balances (nil) (nil) The Hampstead Heath Trust Fund is Contribution to preservation and incorporated within the Hampstead Heath enhancement of Hampstead Heath as Hampstead Heath Trust Fund financial statements as a linked charity. 1,175,309 1,375,547 an open space (nil) (nil)
42
Hampstead Heath | Annual Report and Financial Statements 2023/24
REFERENCE AND ADMINISTRATION DETAILS
CHARITY NAMES: Hampstead Heath, Hampstead Heath Trust Fund
Registered charity number: 803392, 80339-1
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
Ian Thomas CBE - 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
Solicitor
Michael Cogher - The Comptroller and City Solicitor of the City of London Corporation
Environment Department
Juliemma McLoughlin – Executive Director of Environment (resigned 30[th] November 2023)
Bob Roberts – Interim Executive Director of Environment (appointed 12[th] July 2023)
Emily Brennan – Director of Natural Environment (appointed 5[th] June 2023)
AUDITORS:
Crowe U.K. LLP, 55 Ludgate Hill, London, EC4M 7JW
BANKERS:
Lloyds Bank Plc., P.O.Box 1000, BX1 1LT
INVESTMENT ADVISORS:
Artemis Investment Management Limited, Cassini House, 57 St. James's Street, London, SW1A 1LD
Contact for The Chamberlain & City’s Estate Officer, to request copies of governance documents & of the Annual Report of City’s Estate: CHBOffice-BusinessSupport@cityoflondon.gov.uk
43