Splashing in the pool of despair!

Following on from paddling I have received information from the Charity Commission about the Swimming Pool Trust. I received the reports and accounts for 2005/06, 2006/07 and 2007/08. The information I found interesting is:

2005/06 Report and Accounts

• The Trust received was given the swimming pool site by SNTC. The Trust increased its balance sheet by £107,354. 
• The rent received from Eat n' Bowl rose from £10,000 pa to £12,000 pa.
• The Charity Commission told the Trust a sale could go forward only the basis that all proceeds are treated as "permanent endowment".

2006/07 Report and Accounts

• The Trust must either find substantial capital sums to re-instate the swimming pool or sell the land ln order to provide funds for a new facility.
• Due to an Outdoor Pool being a loss making facility the Trust will need to explore other options for the future.
• The freehold land was inspected and valued as at 31 March 2002, by the District Valuer. The valuation was made in accordance with the Royal Institution of Chartered Surveyors and Valuation Manual. The Trustees are not aware of any material change in the value of the land since the last valuation.

2007/08 Report and Accounts

• Nothing to be added here.

So from these three reports I can take the following:

The Swimming Pool trust received the land at the old swimming pool. Except the Land Registry has the Town Council owning the land. This was registered as Town Council land on 24th January 2007.

Also in each report the land value was given as £107,354. It was also stated the Trustees were not aware of any material change. Although in the 2005/06 accounts it was stated a revaluation would take place on 31/03/07. These accounts were signed on 28/03/07. So what happened to the revaluation?
Hold on a minute. The land was registered at the Land Registry on 24/01/2007. The value was given as £1,000,000.

So our Town Councillors registered land and valued it at £1 million and the same Councillors as Trustees keep telling the Charity Commission it is only worth £107,354. There is something wrong here! Of course the land was valued as an outdoor swimming pool back in 2002. Now without the swimming pool, the land is more valuable.

The law on permanent endowments has changed. This money, with the Charity Commissions agreement, could be used to fund a swimming pool. Otherwise the money would have to be invested and only the interest used to pay towards a swimming pool.

The Eat n' Bowl now pays £12k pa in rent.

Let us hope the Swimming Pool Trust can persuade the Charity Commission to use the money to build a swimming pool. Otherwise the money is pretty useless.


Supporting documents:
Land Registry Entry
2005/06 Report and Accounts
2006/07 Report and Accounts
2007/08 Report and Accounts

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