Registered number:
OC428493
Otterpool Park LLP
Financial statements
For the year ended
31 March 2021
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Otterpool Park LLP
Registered number:
OC428493
Balance sheet
As at
31 March 2021
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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Members' capital classified as equity
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Other reserves classified as equity
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Amounts due from members (included in debtors)
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The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small LLPs regime.
The financial statements have been delivered in accordance with the provisions applicable to LLPs subject to the small LLPs regime.
The entity has opted not to file the statement of comprehensive income in accordance with the provisions applicable to entities subject to the small LLPs regime.
The financial statements were approved and authorised for issue by the members and were signed on their behalf by
:
Ewan Green - Director
Folkestone and Hythe District Council
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The notes on pages 2 to 8 form part of these financial statements.
Page 1
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Otterpool Park LLP
Notes to the financial statements
For the year ended 31 March 2021
Otterpool Park LLP (“the LLP”) is a limited liability partnership and is incorporated in England with the registration number OC428493. The address of the registered office is The Jockey Club, Stone Street, Westenhanger, Hythe, Kent, CT21 4HX.
2.
Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Section 1A of
Financial Reporting Standard 102, the Financial Reporting Standard applicable in
the UK and the Republic of Ireland and the Companies Act 2006
and the requirements of the Statement of Recommended Practice "Accounting by Limited Liability Partnerships".
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the LLP's accounting policies.
The financial statements have been prepared in pound sterling and are rounded to the nearest pound.
The following principal accounting policies have been applied:
While the impact of the ongoing COVID-19 pandemic has been assessed by the members so far as reasonably possible, it is difficult to evaluate the potential outcomes on the LLP’s future operational activities with certainty. However, the members have taken every possible step to mitigate any potential related costs and have taken into consideration the latest UK Government restrictions and available support.
Notwithstanding these factors, after making enquiries and considering the uncertainties, the members have formed a reasonable expectation that the LLP has adequate resources to continue in operational existence for the foreseeable future. For these reasons, they continue to adopt the going concern basis of accounting in preparing the annual financial statements.
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the LLP and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:
Rendering of services
Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
∙
the amount of revenue can be measured reliably;
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it is probable that the LLP will receive the consideration due under the contract;
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the stage of completion of the contract at the end of the reporting period can be measured reliably; and
∙
the costs incurred and the costs to complete the contract can be measured reliably.
Turnover represents rental income receivable by the LLP.
Page 2
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Otterpool Park LLP
Notes to the financial statements
For the year ended 31 March 2021
2.
Accounting policies (continued)
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Operating leases: the LLP as lessor
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Rental income from operating leases is credited to profit or loss on a straight line basis over the lease term.
Amounts paid and payable as an incentive to sign an operating lease are recognised as a reduction to income over the lease term on a straight line basis, unless another systematic basis is representative of the time pattern over which the lessor's benefit from the leased asset is diminished.
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Operating leases: the LLP as lessee
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Rentals paid under operating leases are charged to profit or loss on a straight line basis over the lease term.
Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.
Page 3
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Otterpool Park LLP
Notes to the financial statements
For the year ended 31 March 2021
2.
Accounting policies (continued)
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
At each reporting date the LLP assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.
The LLP adds to the carrying amount of an item of fixed assets the cost of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the LLP. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to profit or loss during the period in which they are incurred.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
The estimated useful lives range as follows:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
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Stocks and work in progress
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Stocks and work in progress are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase. Work in progress includes labour and attributable overheads.
At each balance sheet date, stocks and work in progress are assessed for impairment. If stock or work in progress is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.
Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
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Cash and cash equivalents
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Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
Page 4
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Otterpool Park LLP
Notes to the financial statements
For the year ended 31 March 2021
2.
Accounting policies (continued)
Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
The LLP has only entered into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors.
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan.
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the statement of comprehensive income.
For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the LLP would receive for the asset if it were to be sold at the balance sheet date.
Financial assets and liabilities are offset and the net amount reported in the balance sheet when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Page 5
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Otterpool Park LLP
Notes to the financial statements
For the year ended 31 March 2021
2.
Accounting policies (continued)
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Members' participation rights
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Members' participation rights are the rights of a member against the LLP that arise under the members' agreement (for example, in respect of amounts subscribed or otherwise contributed, remuneration and profits).
Members' participation rights in the earnings or assets of the LLP are analysed between those that are, from the LLP's perspective, either a financial liability or equity, in accordance with Section 22 of FRS102 and the requirements of the SORP. A member's participation right results in a liability unless the right to any payment is discretionary on the part of the LLP.
Amounts subscribed or otherwise contributed by members, for example members' capital, are classed as equity if the LLP has an unconditional right to refuse payment to members. If the LLP does not have such an unconditional right, such amounts are classified as liabilities.
Profits and losses are allocated only after a decision by the LLP or its representative, so that the LLP has an unconditional right to refuse payment. These profits are therefore classed as an appropriation of equity rather than as an expense. They are shown as a residual amount available for discretionary division among members in the statement of comprehensive income and are an equity appropriation in the balance sheet.
Other amounts arising that are due to members are treated as liabilities and are recorded as an expense in the statement of comprehensive income, to the extent that the LLP does not have an unconditional right to refuse payment. To the extent that they remain unpaid at the year end, they are shown as liabilities in the balance sheet.
All amounts due to members that are classified as liabilities are presented in the balance sheet within 'Loans and other debts due to members'. Amounts due to members that are classified as equity are shown in the balance sheet within 'Members' other interests'.
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Auditor liability limitation agreement
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The LLP has entered into a liability limitation agreement with its auditor. The auditor's liability for any breach of contract or negligence in respect of services provided to the LLP is limited to the lower of 15 times the fees chargeable to the LLP (excluding VAT) across all assignments or £3,000,000 (excluding VAT). These terms were agreed on 1 April 2021.
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This does not include non-executives, who are not employed under a contract of service.
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Page 6
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Otterpool Park LLP
Notes to the financial statements
For the year ended 31 March 2021
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Charge for the year on owned assets
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Prepayments and accrued income
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Creditors: Amounts falling due within one year
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Accruals and deferred income
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Page 7
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Otterpool Park LLP
Notes to the financial statements
For the year ended 31 March 2021
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Commitments under operating leases
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At 31 March 2021 the LLP had future minimum lease payments due under non-cancellable operating leases for each of the following periods:
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Later than 1 year and not later than 5 years
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Related party transactions
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The LLP is exempt from disclosing related party transactions with other parties that are wholly owned within the group.
All other related party transactions, during the current and prior periods, including key management personnel compensation, were made under normal market conditions.
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The LLP is a subsidiary undertaking of The District Council of Folkestone and Hythe.
The results of the LLP are included in the consolidated financial statements prepared by The District Council of Folkestone and Hythe, which can be viewed at www.folkestone-hythe.gov.uk.
The District Council of Folkestone and Hythe is registered at Civic Centre, Castle Hill Avenue, Folkestone, Kent, CT20 2QY.
The auditor's report on the financial statements for the year ended 31 March 2021 was unqualified.
The audit report was signed on
27 September 2021
by
Peter Manser FCA DChA
(senior statutory auditor) on behalf of
Kreston Reeves LLP
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Page 8
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