Report to:

Cabinet

 

Date of meeting:

 

1 March 2022

By:

Chief Operating Officer

 

Title:

The Conservators of Ashdown Forest – 2022/23 Amended Budget and the annual grant from the Ashdown Forest Trust Fund

 

Purpose:

To present the Conservators’ amended budget for 2022/23 and the annual grant from the Ashdown Forest Trust Fund

 

RECOMMENDATIONS

Cabinet is recommended to:

1.            approve the Conservators’ Core budget for 2022/23 and the potential contribution of up to a maximum of £122,980.

2.            approve the annual grant for 2022/23 from the Ashdown Forest Trust Fund 

 

1          Background

1.1       The Board of Conservators met on 29 November 2021 and considered and approved an initial budget, excluding any income from the potential introduction of car parking charges from 2022/23. Consideration was also given to the development of a sustainable medium term financial plan to 2025/26. At an Extraordinary Meeting of the Board of Conservators on 31 January 2022 approval was given for the introduction of car parking charges from 2022/23, this is reflected in the supporting information and amended budget below.

 

2          Supporting information: Budget 2022/23

 

2.1       The 2022/23 Conservators of Ashdown Forest (CoAF)’s Core Budget, amended for the introduction of car parking charges, is presenting a deficit of £122,980 (Appendix 1). In approving this amended budget the CoAF are including a scenario of mid-range projected income from car parking charges, increased spending on land management and systems improvements with the organisation and no income contribution from The Ashdown Forest Foundation (TAFF).

 

2.2       In approving the introduction of car parking charges, the CoAF at its Extraordinary Board Meeting on 31 January 2022, considered a range of income possibilities:

The decision was made to assume the mid-range projected income of £78,869.

2.3       There are uncertainties and variables that may alter the income that will be generated from car parking. The CoAF believes that the overall revenue streams may deliver higher income projections within the published business case. Conversations with organisations that have introduced parking charges suggest that the initial roll out will present significant challenges but will have a  positive impact on the overall budget.

2.4       The 2021/22 Core Budget included £150,000 additional income from the recently formed charitable body, The Ashdown Forest Foundation (TAFF). This budget was not achieved and in setting the 2022/23 budget, no income has been assumed from the TAFF. TAFF is working to raise its profile and is beginning to draw in donations. It is actively looking for corporate sponsorship and is building a rich network of connections. It has run its first events and is planning an enhanced programme in 2022. Initially, any income generated needs to remain with the TAFF to allow it to be set up to generate long term funding. It is possible however, with the early success of TAFF, that a transfer of funds will be possible in 2022/23 and that will be picked up in future forecasts.              

2.5       There are management actions that could be taken in 2022/23 to manage a reduction in the deficit, including deferring capital expenditure, tightly managing day to day expenditure and seeking opportunities to reassess the recharge arising from the use of the Countryside Stewardship staff for Core Budget activities. This has the potential to reduce the deficit to £60,000 prior to any additional income from car parking or the TAFF.   

2.6       The Conservators’ Core Budget receives a grant from the Ashdown Forest Trust, of which ESCC is the trustee. The balance of the Trust Fund is estimated to be £167,168 at 1 April 2022 (Appendix 3) and it is proposed to maintain the grant funding of £65,100 to the Conservators’ Core Budget in 2022/23. The lease to the Ashdown Forest Golf Club was reviewed in early 2020 and remains unchanged at £70,000 per annum.

 

2.7       The  Countryside Stewardship budget (Appendix 2) is showing a surplus of £109,757. The Rural Payments Agency (RPA) has overturned their 2019 Countryside Stewardship inspection results and settled the issues regarding outstanding payments on the disputed pockets of land during the 2021/22. These repayments were more than £100,000. The CoAF has received final figures and an updated agreement. A management plan to accompany this is being produced and will assist with future budgeting. This successful resolution has created a higher degree of certainty on what is expected from the RPA, and it is now confirmed that cashflows will increase by £97,757p.a.

 

2.8       Whilst presenting a deficit budget, the Board and Chief Executive Officer are working with Council officers and are committed to delivering an improved financial position for 2022/23, providing quarterly update reports, including updated budgets that support a sustainable Medium-Term Financial Plan by Summer 2022, that will support the strategic objectives of the COAF. Any liability from the Core Budget that does fall to the Council for 2022/23 will not be settled until after the accounts for 2022/23 have been reconciled and approved.

 

3.         Recommended Funding

 

3.1       Annual income to the Trust Fund, from a long-term lease with the Royal Ashdown Forest Golf Club, amounts to £70,000 with the addition of bank interest. The contribution to the Conservators from the Trust Fund can therefore be maintained at £65,100 in 2022/23

 

4.         Conclusion

4.1        The amended budget for 2022/23 presents a deficit of £122,980 including the impact of the decision to implement car parking charges being approved by the Board of Conservators on 31 January 2022. There remains uncertainties and opportunities for income generation in excess of modelled car parking income and from the TAFF, which together with management action during the year, that could have a positive impact on the overall budget. The Board and Chief Executive Officer are working with Council officers and are committed to delivering an improved financial position for 2022/23, providing quarterly update reports, including updated budgets that support a sustainable Medium-Term Financial Plan by Summer 2022, that will support the strategic objectives of the COAF.

 

4.2       Where Cabinet is recommended to:

 

Phil Hall
Interim Chief Operating Officer

Contact Officer: Ian Gutsell
Tel. No. 01273 481399

Email: ian.gutsell@eastsussex.gov.uk

LOCAL MEMBERS

Councillors Galley, Howell, Lunn & Georgia Taylor

ESCC MEMBERS ON THE BOARD OF CONSERVATORS

Councillor Howell 

Appendix 1 

 

The Conservators of Ashdown Forest – 2021/22 Outturn Forecast and Proposed 2022/23 Core Budget                                       

 

INCOME SUMMARY

2021/22

2021/22

2022/23

 

FORECAST

Budget

Budget

 

£

£

£

Licences & Forest Rate

        211,915

           211,915

           196,465

Countryside Stewardship Staff Recharge               

123,814

           123,814

           123,814

Unrestricted funding (ESCC, WDC, AFT, PCs)

           78,100

           228,100

             78,100

Income generation and Donations

           10,200

             10,200

               4,100

Forest Products incl. Meat and Deer Carcasses

           37,935

             37,935

             23,980

Visitors

           11,200

             11,200

             15,200

Financial

                 200

                   200

                   200

Car Parking

                      -  

                      -  

             78,869

TOTAL UNRESTRICTED CORE INCOME

         473,364

           623,364

           520,728

 

 

 

 

Restricted Funds (to be spent under terms of funding restrictions only)

     34,240

          34,250  

                 45,250

 

 

 

 

TOTAL CORE INCOME

        507,604

           657,614

           565,978

 

EXPENDITURE SUMMARY

2021/22

2021/22

2022/23

 

FORECAST

Budget

Budget

 

£

£

£

Core Forest Staff Costs

         306,033

           354,600

           389,702

Operational expenses

         154,044

           166,915

           137,691

Administration Overheads

           66,850

             66,850

             98,305

Financial

           22,010

             22,010

             18,160

Visitors

             3,300

               3,300

               6,300

Governance/Charity set up

                      -  

                      -  

                      -  

TOTAL NON CAPITAL CORE EXPENDITURE

        552,237

           613,675

           650,158

 

 

 

 

Expenditure from Ringfenced Funding

          12,000

             12,000

               5,000

 

 

 

 

Total Core Capital Expenditure

           30,000

             30,000

             33,800

 

 

 

 

TOTAL CORE EXPENDITURE

         594,237

           655,675

           688,958

 

 

 

 

 

 

 

CORE 2020/21 YEAR END SUMMARY

FORECAST

£

BUDGET 21/22

£

BUDGET  22/23

£

Total Forecast Income

507,604

657,614

565,978

Total Forecast Expenditure

(594,237)

(655,675)

688,958

Surplus/(Deficit)

(86,633)

1,939

(122,980)

 

 

 

 

 

 

FORECAST CORE RESERVES TO YEAR END 2022/23

 

 

 

Reserves b/f YE 2020/21

          396,772

  

 

Forecast Surplus/(Deficit) year ending 2021/22

(86,633)

 

 

Reserves balance Forecast to YE 2021/22

          310,139

 

 

Forecast Surplus/(Deficit) year ending 2022/23

(122,980)

 

 

Reserves balance Forecast to YE 2022/23

187,159

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Appendix 2

Countryside Stewardship Budget 2022/23

 

 

 

RESERVE FORECAST TO YEAR END 2023

£

 

Surplus brought forward at Year End 31 March 2021

409,717

FORECAST Income/Expenditure Deficit for Year Ending 31 March 2022

(10,017)

FORECAST Surplus forecast to be carried forward at 31 March 2022

399,700

FORECAST Income/Expenditure Surplus for Year Ending 31 March 2023

109,757

 

Total Surplus forecast to be carried forward at 31 March 2023

 509,457

 

 

 

INCOME/EXPENDITURE SUMMARY

 

Income Budget

Expenditure Budget

Income Budget

Expenditure Budget

 

 

21/22

21/22

22/23

22/23

 

 

Heathland Area Projects (LH1)

395,214

396,902

     415,723

       403,723

 

 

Bracken Supplement (SP3)

        33,651

         33,651

       33,651

          33,651

 

 

Educational Visits (ED1)

          7,250

            7,250

         7,250

            7,250

 

 

Woodland CS (WD2): Deer Project

       45,000

          41,200

       34,538

          34,538

 

 

Woodland CS (WD2): Woodland Management

           5,000

            5,000

          5,000

            5,000

 

 

Income from changes to land pockets

 

 

97,757

 

 

 

 

TOTALS

               486,115

 

484,003

               593,919

           484,162

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Appendix 3

Ashdown Forest Trust Fund 2022/23 Projected Income and Expenditure    

 

ASHDOWN FOREST TRUST FUND

Forecast 2021/22

Budget 2022/23

Income

£

£

Royal Ashdown Forest Golf Club- Rent

70,000

70,000

Bank Interest

15

20

 Total Income

70,015

70,020

 Expenditure

Conservators of Ashdown Forest- Annual Grant

65,100

65,100

Professional & Audit Fees

540

540

 Total Expenditure

65,640

65,640

 

Surplus/(Deficit)

4,375

4,380

Balance Brought Forward

162,793

167,168

Balance Carried Forward

167,168

171,548