Meeting documents

1 THE ISSUE

1.1 This report gives details of the financial outturn for 2007/08, the 2008/09 budget including the draw down of loans granted by the Council in respect of the Strategic review and Turnstiles.

2 RECOMMENDATION

2.1 Approve the Final Accounts for 2007/08.

2.2 Note the current spend on the Strategic Review and drawdown of loans.

2.3 Approve the budgeted position for 2008/09.

2.4 Consider the financial consequences of the Charity Commissions' Decision as outline in 4.4

3 FINANCIAL IMPLICATIONS

3.1 Included in the report.

4 REPORT

4.1 2007/08 Outturn

(1) The outturn position for 2007/08, excluding spend on the turnstiles, shows a surplus of £31,526 before the loan repayment. This is slightly higher than the budgeted figure of £26,000. Income was £5,000 less than estimated but expenditure was also lower than budgeted for, mainly because of reduced charges for officer time. Expenditure on business rates is higher than anticipated due to a prior year refund to Bath Rugby Club in relation to 2006/07. Details of the outturn position are given in Appendix 1.

4.2 Budget 2008/09

(1) The budgeted gross operating surplus for 2008/09 is estimated to be £30,000 reflecting the continuing use of the temporary East Stand by Bath Rugby and the excess revenues generated by their success in competitions. Significantly the East Stand lease continues to be the main source of income for the Trust accounting for some £79,069.95 ex VAT (with the opportunity to increase by £6,044 for every home match over the 15 guaranteed matches) of revenue generated and in total Bath Rugby account for approximately 80% of all Trust Income. Further loan repayment of £21,500 is due in 2008/09 which would leave a net surplus of £8,500. Details of the budget estimate and spend to date for 2008/09 are shown in Appendix 3

4.3 Strategic Review Loans Position

(1) Loans from the Council of £220,000 have been approved to fund the Strategic Review and refurbishment of the Historic Turnstiles. The Turnstiles works were completed at cost of £64618 and as at 31^st March 2008 £143,758 had been spent on the Strategic Review. The Trust was able to repay £20800 plus interest from the surplus generated in 2007/08. The remainder of the surplus has further reduced the overall operating deficit of the Trust, accumulated since it was registered as a Charity, to £76,903.

(2) The balance of loan available to the Trust at the start of 2008/09 was £11,625. To date in 2008/09 the Trust has incurred a further £37,746 on the Strategic Review exhausting the loan. Details of expenditure on the Strategic Review are given in appendix 2. The Trust has now spend £26,121 more than its loan and the estimated surplus for 200/08 of £8,500 is insufficient to cover this deficit.

4.4 Future Funding Position

(1) The Trust will need to carefully consider its financial position in relation to the response from the Charity Commission regarding the Strategic Review. The Trust should have regard to

a) the implications of the Charity Commission's decision on the finances of the Trust,

b) the financial consequences of any further actions resultant from the Commission's decision

c) producing a robust financial strategy which not only accommodates a) and b) above but also provides for the repayment of liabilities and sustaining the Trust in the long term

(2) The Trust as part of this process should review all of its expenditures and sources of income including charging policies. The Trust has an immediate need to undertake this to balance the 2008/09 financial position