Agenda item

Report of the Corporate Director of Finance and Resources

Thomas Straw, Senior Accountant for Capital Programmes, presented the report which informs the committee of the draft 2022/23 financial outturn for the Bridge Estate Trust, a copy of which is attached to the report.

The following points were highlighted and members’ questions responded to:

a)  The report presents the draft accounts and requests that the committee delegate authority to the Chair to sign the accounts once finalised so the City Council’s accounts can be consolidated;

b)  Committee members will be informed of any changes from the information  presented to them today, and the final accounts will be presented to the next meeting;

c)  The charity achieved a rental income of just under £1.5 million, which represents a slight decrease due to loss of rent from vacant Lister Gate properties;

d)  It is noted that the 2022/23 accounts included a technical adjustment regarding the former Robin Hood Energy tenant which went into administration, and the loss allowance;

e)  The Bridge Estate cash balance is invested by NCC on behalf of the trust;

f)  Expenditure on business rates has increased from £150,000 to £250,000 due to landlord liability from vacant properties;

g)  The charity formally paid the City Council a grant of £750k for 2022/23, and is predicted to drop to between £500k and £600k for 2023/24;

h)  The report sets out the reserves within four sections, which, following the decision of the committee in the previous municipal year, is now increased by £150k;

i)  Training will be made available to support trustees in making the best possible decisions for the charities;

j)  The charity does not directly employ any staff, but does pay the City Council for officer time for property and financial management, including legal support. A  detailed breakdown of management costs can be made available to trustees;

k)  The most significant area of vacant properties is on Lister Gate, with premises formerly occupied by Vision Express and WHSmith, affected by the Broadmarsh Centre redevelopment. These properties became vacant and are currently the subject of discussion for potential disposal;

Committee members noted that the charity’s grant to the City Council is incorporated into the City Councils Medium Term Financial Plan, but requested further information on:

i.  how the funds are used to for the public benefit of the citizens of Nottingham;

ii.  a broader view of alternative routes to meet the public benefit objective while providing the best possible value for the Charity and Nottingham’s citizens.

Resolved:

1)  to note the draft outturn accounts for Bridge Estate for 2022/23;

2)  to delegate authority to the Chair of the Committee to sign the audited  accounts on behalf of the Trust, noting that the final version of the accounts will be circulated outside of the meeting to the Committee prior to signing, and then formally circulated at a later Committee meeting;

3)  for further information on specifically how the City Council ensures that the funds granted by the charity are used to benefit the citizens of the City, with alternative options investigated.