Agenda item

Report of the BHE & Charities Finance Director, representing the Chamberlain

The Board considered a report of the Managing Director of BHE and the BHE & Charities Finance Director, representing the Chamberlain, updating on the 2021/22 latest forecast and presenting the 2022/23 revenue budget and Medium-term Financial Plan (MTFP), covering financial years 2023/24 – 2025/26, for BHE.

The BHE & Charities Finance Director, representing the Chamberlain, introduced the report and outlined the key features of the revenue budget and the medium-term financial plan for the Board, before drawing Members’ attention to the recommendations in respect of several matters for consideration by the Board, including the creation of a designated fund for the Climate Action Strategy (CAS) and options for the level of free reserves to be held. In response to a question from a Member, the BHE & Charities Finance Director advised that a further proposal would be brought to the Board regarding the reallocation of funds to the designated fund for the CAS, should its creation be agreed.

The Deputy Chair, in the Chair, then drew the Board’s attention to the recommendations and sought the Board’s agreement on each matter in turn.

RESOLVED – That the BHE Board, in discharge of functions for the City Corporation as Trustee of Bridge House Estates (charity no. 1035628) and solely in the charity’s best interests:

1. Note the latest revenue forecast for 2021/22;

2. Approve the 2022/23 revenue budget and Medium-Term Financial Plan for period 2023/24 – 2025/26;

3. Approve the creation of a designated fund for the Climate Action Strategy and agree that £15m should be moved to this fund from the Unrestricted Income Reserves. The amount held within this designated fund is to be reviewed on an annual basis with the permitted spend in any year to be within the available balance within the designated fund;

4. Agree to hold additional free reserves of £55m over and above the agreed minimum policy of £35m across the period of the Medium-Term Financial Plan as a mitigation against the uncertain period in which the charity is operating, maintaining the current approved level of free reserves of £90m;

5. Approve the 2022/23 capital and supplementary revenue project budgets, which have been included within the calculations for reserves;

6. Approve that all Departments within the City Corporation managing budgets on behalf of BHE prepare these for 2023/24 under a zero-based budgeting basis;

7. Note that a revised Medium-Term Financial Plan for the charity will be developed, covering a period of 5 years, once the power for total return accounting for endowed charities is granted as anticipated by way of Supplemental Royal Charter later this year; and,

8. Endorse this report for onward approval to the Court of Common Council.