Your Councillors

Cobtree Manor Estate Committee

25 January 2018

 

Cobtree Manor Estate Financial Position

 

Final Decision-Maker

Cobtree Manor Estate Committee

Lead Head of Service

Head of Regeneration & Economic Development

Lead Officer and Report Author

Paul Holland, Senior Finance Manager (Client)

Classification

Public

Wards affected

Boxley

 

Executive Summary

 

The report summarises the current financial position of the Estate as at 30th November 2017 covering the activities at the golf course, Kent Life, the Manor Park and the Café/Visitor Centre.

 

 

This report makes the following recommendations to this Committee:

1.   That the current financial position is noted.

 

 

Timetable

Meeting

Date

Cobtree Manor Estate Committee

25 January 2018



Cobtree Manor Estate Financial Position

 

 

1.      INTRODUCTION AND BACKGROUND

 

1.1     This is a regular update report on the financial position of the Estate, which enables the Committee to see how the various areas of activity are performing. The last few years have seen a number of significant financial pressures and issues, and it is important for the future of the Estate that these are addressed and monitored.

 

 

2.        CURRENT FINANCIAL POSITION

 

2.1     Appendix A shows a summary of the current financial position as at 30th November 2017, along with the full year budgets, and this section outlines the position for each of the areas of activity:                                                                                 

2.1.1   Cobtree Golf Course –The new contract with Mytime commenced on 1st April 2017. Responsibility for utility payments now rests with Mytime, as reflected in the reduction in running costs. Mytime have been invoiced for the contract sum due for 2017/18.                                                                    

2.1.2   Cobtree Manor Park – Car parking income is continuing to generate a healthy level of income, although there have been some additional maintenance costs incurred within the park itself. There are no other issues to report at this stage.                                                                       

2.1.3   Kent Life - There are no issues to report with regards to the Kent Life attraction. The invoice for 2017/18 will be sent shortly. The contract states that the annual sum due is paid a year in arrears.                                                                                                    

2.1.4   Café/Visitor Centre –The current operational position is discussed in more detail in the Cobtree Visitor Centre Report elsewhere on this agenda. However the café continues to perform significantly better than the initial projections for the year. As Members will be aware management of the café will shortly be passed to an external contractor so the budgets will need to be adjusted to reflect this.

 

2.2     Overall position - The original budget forecast for the end of the year forecast that the estate activities would show an overall deficit position of £27,250 for the year. However taking into account the forecast estimated investment income of £50,000 it would project resources increasing by £22,750 for 2017/18. It should be noted that with the café currently performing better than was initially projected then the forecast deficit position for the estate activities should be reduced and could possibly show a small surplus in addition to the investment income.

 

 

3.        PREFERRED OPTION AND REASONS FOR RECOMMENDATIONS

                                                                              

3.1     It is recommended that the Committee note the contents of this report as this is good financial management practice. 

 

                                                                              

 

 

 

4.       NEXT STEPS: COMMUNICATION AND IMPLEMENTATION OF THE DECISION

 

4.1     Officers will continue to monitor the financial position and take appropriate action where necessary.

 

 

5.       CROSS-CUTTING ISSUES AND IMPLICATIONS

 

 

Issue

Implications

Sign-off

Impact on Corporate Priorities

The operation of the Estate directly supports the objects of the Trust and the Council’s strategic objective to ensure there are good leisure and cultural attractions in the Borough.

Head of Regeneration  & Economic Development

Risk Management

There is a potential reputational risk if the facilities are operated poorly. This is addressed in the annual risk management report.

Leisure Manager

Financial

There is a financial risk to the Trust if the new operations cost more than predicted or fail to generate sufficient income to cover the costs of running them estate.

Senior Finance Manager (Client)

Staffing

There are no additional implications arising from this report.

 

Legal

There are no additional implications arising from this report.

Keith Trowell, Interim Team Leader (Corporate Governance)

Privacy and Data Protection

There are no additional implications arising from this report.

 

Equalities

There are no additional implications arising from this report.

 

Crime and Disorder

There are no additional implications arising from this report.

 

Procurement

There are no additional implications arising from this report.

 

 

6.        REPORT APPENDICES

 

The following documents are to be published with this report and form part of the report:

·         Appendix 1: Financial Position Summary 2017/18

 

 

7.        BACKGROUND PAPERS

 

None.