Meeting documents

Cabinet meeting as RBWM Recreational Trust
Thursday, 25th August, 2005

Web Agenda/Minutes Summary Document

Meeting Name:
Cabinet Meeting As RBWM Recreational Trust

Meeting Date:
08/25/2005 Pick

Meeting Time:


Location:


Sub Committee / User Forum etc (if required):




Members Present:

Non-Members Present:

Confidentiality: Part I


Document Type: Agenda


Document Status: Final



NOTICE
OF
MEETING
CABINET MEETING
AS TRUSTEES OF THE ROYAL BOROUGH OF WINDSOR AND MAIDENHEAD RECREATIONAL TRUST

WILL MEET ON

THURSDAY 25 AUGUST 2005

at

THE CONCLUSION OF THE PART I BUSINESS OF THE CABINET MEETING

in the
COUNCIL CHAMBER,
GUILDHALL,
WINDSOR

TO:
COUNCILLOR MRS GLIKSTEN (CHAIRMAN)
COUNCILLORS WERNER (DEPUTY CHAIRMAN & COMMUNITY PARTNERSHIPS)
FAGENCE (LEISURE & CULTURAL SERVICES),
MRS HOWES (PLANNING, PROPERTY AND MAIDENHEAD TOWN CENTRE),
WOOD (TRANSPORT & TRAFFIC MANAGEMENT)
MRS PITTEWAY (EDUCATION),
MRS PROCTOR (SOCIAL SERVICES & HOUSING)
EGLISE (FINANCE)

CC: ALL OTHER COUNCILLORS (FOR INFORMATION) – index pages only

Issued: 17 August 2005
Members of the Press and Public are welcome to attend this meeting
AGENDA

ITEM
SUBJECT
PAGE
NO
1.APOLOGIES FOR ABSENCE

To receive any apologies for absence
2.DECLARATIONS OF INTEREST
3.THE ROYAL BOROUGH OF WINDSOR AND MAIDENHEAD RECREATIONAL TRUST
1


1

THE ROYAL BOROUGH OF WINDSOR AND MAIDENHEAD
RECREATIONAL TRUST

25th August 2005 – Report to Trustees


1. PURPOSE OF REPORT

To review the arrangement of the Council as Trustee to the Royal Borough of Windsor and Maidenhead Recreational Trust and confirm the basis upon which the accounts are submitted to the Charity Commission.

2. OFFICER’S RECOMMENDATION
      That Members note the report and the ongoing arrangements for the operation of the Trust and confirm that:
· Cabinet agree to act on behalf of Council as the Trustees of RBWM Recreational Trust and a report be submitted to Cabinet accordingly.
· The Head of Finance continues to be authorised to submit the required accounts to the Charity Commission as outlined in the report on behalf of the Trustees.

3. SUPPORTING INFORMATION

3.1 Wards Affected
      Oldfield

3.2 Relevant Matters Upon Which Decision is Based

3.2.1 The Council was appointed as Trustee of The Royal Borough of Windsor and Maidenhead Recreational Trust (Charity No. 308246), by a Charity Commission Scheme dated 19th September 1975. The object of this Charity is to provide or assist in providing facilities for recreation or other leisure time occupation in the interest of social welfare for the benefit of the inhabitants of The Royal Borough of Windsor and Maidenhead.

3.2.2 The Trust documentation required the Council as local authority to grant a 99-year lease of land to the Council as Trustee when the leisure facility required, was constructed which was done on the 18th March 1985. The 99 years runs from the date of the Trust declaration. Money was authorised from another Charity (the Kidwells Park Charity) together with additional funds and the Borough as local authority through its loan facilities, and capital receipts funded the remainder of the construction costs. Currently the facility forms part of the larger development known as the Magnet Leisure Centre and is held on lease by the Trust. The Centre itself is operated by the Borough, which collects all admission fees which are paid into separate and identifiable cost centres within the Borough overall accounts to offset some of the running expenses incurred by the Council, as the Centre currently operates at a substantial deficit.

3.2.3 In the past the Leisure Services Board acted as the Trustee on behalf of the Council. Cabinet will recall that it has considered the Audit Commission’s management letter of January 2005, which stated that the arrangements for the operation of the Magnet Leisure Centre should be clarified. As a result a Senior Officer Working Group has reviewed arrangements and this report reflects the conclusion of this working group. It is now proposed that the Cabinet should act as Trustee and this satisfies the requirements of the Audit Commission and clarifies arrangements.

3.2.4 The Audit Commission also raised the question of our ability to claim rating relief under Section 47 of the Local Government Finance Act (“the Act”). For rating purposes under Section 47 of the Act where a property is occupied by a Charity and used wholly and mainly for charitable purposes, rating relief is available.

3.2.5 The Trust document empowers the Trust to enter into “an arrangement” with any other party (specifically a Local Authority) in connection with the facility allowing that party to administer the Trust on behalf of the Charity. This allows the Borough’s operational role as currently practised. Reference should also be made to Section 67 of the Act which defines Charity for the purposes of the Act as “an Institution or organisation established for charitable purposes or any persons administering a Trust for charitable purposes only”, and officers consider that the Council’s occupation of the property falls within this and that relief is therefore properly granted.

3.2.6 In accordance with The Charity Commission’s requirements, the Trust must file annual accounts setting out the Charity’s financial activity. Officers believe that the financial activity of the Trust itself, falls below the threshold for the provision for full accounts. Consequently, we believe that nil returns should be made in the future. Members are also asked, as Trustees, to confirm that the Head of Finance be authorised to submit the Charity’s annual accounts accordingly.

3.2.7 The valuation of the Lease in accordance with the RICS Guidance is being prepared to reflect the restrictive nature of the operation of the site and the dual role, which the Council fulfils. This is being completed and will be reflected in the accounts submitted.

3.3 Options Available
    3.3.1 That the Council proceeds on the basis set out. This provides clarity for the Trustees, together with satisfying the reporting requirements of the Charity Commission and the general requirements of the Audit Commission in respect of the relationship of the Borough to the Charity.

    3.3.2 That the Council do not acknowledge the responsibilities of the Trust. This has the disadvantage of leaving the Council open to challenge in respect of potential failure to comply with the reporting obligations to the Charity Commission and leaving its role as Trustee unclear to the Audit Commission.
    4. CONSULTATION CARRIED OUT
        No specific public consultation has been carried out on this matter, however the Charity Commission have been advised of arrangements in place.

    5. IMPLICATION

    5.1 Financial
        The Magnet Leisure Centre receives the mandatory relief for charities of 80% on the NNDR Rates payable for 2005/06 are £33,380 after charitable relief. If the Centres buildings were to lose this relief there would be a cost to the Council of an additional £133,520.

    5.2 Legal
        In addition to the information set out above under the Regulations and Guidance relating to the Local Government Act 2000 the function of Trustee is not allocated to a specific Council body and therefore by default is a cabinet function. This report seeks to confirm and clarify this arrangement.





        Background papers

    Declaration of Charitable Trust dated 1st November 1971
    The Audit Management letter dated January 2005
    Lease dated 18th March 1985
    Charity Commission Scheme dated 19th September 1975