Contact: Bevis Ingram, 01962 847508, email [email protected]

1 Introduction

1.1 This report presents the outturn for the 2004/05 financial year (year ended 31 March 2005). The report also shows, for information, the revenue budget for 2005/06, as agreed by the JMC in December 2004, with the reserves position adjusted for the actual 2004/05 outturn.

1 Overall Financial outturn

1.1 Appendix 1 shows the outturn for 2004/05. Overall the bottom line is very similar to the revised budget reported to the last committee meeting. However, there are a few significant variations with in this - additional expenditure of around £70,000 being matched by additional income of approximately the same amount, principally on the Heritage Lottery Fund (HLF) Volunteer Don't Vandalise scheme. The main reasons for these are as follows:

· additional costs on the Volunteer Don't Vandalise scheme which have been funded by the HLF. This is a three year scheme and the additional costs in 2004/05 have been matched by bringing forward grant from the HLF (effectively costs and income have been brought forward from 2005/06)

· additional costs have been incurred on essential equipment, furniture and materials for the new facilities (£7,800) and on contracted services (£5,900), ICT (£5,700) and promotions/office expenses (£16,500). Much of these additional costs are essential investment for the future to ensure full use can be made of the new facilities now open

· much of the above increase in expenditure has been offset by an additional £24,200 being earned in entrance charges. An extra £5,800 received in sponsorship and donations, and £5,000 earned by the catering operation has also contributed to the healthier position. £39,200 for HLF funding to cover the additional expenditure in the year on the Volunteer Don't Vandalise scheme has also been included under Other Income.

1.2 Overall the operating deficit of £18,429 made by the Park was less than that allowed for in the revised budget by £1,871 and can be shown as follows:

	Revised budget	Outturn
	2004/05	2004/05
Expenditure	668,400	737,610
Income	435,400	506,481
Net Expenditure	233,000	231,129
Funding from Local Authority Partners	212,700	212,700
Deficit	20,300	18,429

2 Reserves

2.1 It was reported to the last committee that the deficit for 2004/05 would take the Park's reserves to an overdrawn position of £37,338. The Park's reserves have been reviewed and a one off adjustment £18,878 has been made for prior years, mainly a grant from the Hampshire Historic Buildings Trust and unpaid interest, both relating to funding of the major HLF scheme. This means that the Park's reserves are overdrawn by £16,672 as at 31 March 2005 a significant (and fortuitous) improvement on the expected position.

2.2 The budget for 2005/06 set in December 2004 planned to make a small surplus (£11,000). Although this is insufficient to pay off the current deficit, it is anticipated that the operating with the new facilities will generate new income streams and contribute substantially to the reserves over the next few years. The lower than expected overdrawn position at 31 March 2005 means it is now entirely realistic to expect that the Park should move back into the black in 2006/07 and commence to build up the reserves thereafter.

3 Financial Analysis

3.1 Although the reserves are still overdrawn the situation has stabilised, and with the new facilities now all fully open the Park operations should generate sufficient surpluses to bring the reserves back into the black in 2006/07 (one year earlier than anticipated in the business plan reported to the last committee).

3.2 The deficit is being held with Hampshire County Council who act as Treasurer for the JMC; the JMC will continue to rely on the County Council's goodwill to allow the deficit to be incurred and now not be paid off until 2006/07.

4 Visitor analysis

4.1 The following table shows visitor and shop figures for the past five years.

4.2 Visitor numbers have improved dramatically over the past few years (even allowing for 2001/02 being hit by closure and artificially low admission prices during the Foot and Mouth crisis). Recent initiatives include the completion of the new facilities, and free days, 2 for 1 offers and discounts. Interest in the Park has increased, and the customer feedback has been very positive which bodes well for building up repeat visits, and visitor numbers overall.

4.3 The financial year 2004/05 included two Easters (April 2004 and March 2005), and consequently there is no Easter in the financial year 2005/06. In the light of this the target for visitor income for 2005/06 is challenging. It will require a further significant increase in visitor numbers, which is based on the new facilities being fully open for the full year, but it should be achievable.

4.4 Net income per head in the shop is very consistent suggesting that once people are through the door they will spend in the shop regardless of what other attractions are on offer. Efforts will continue to be made to maximise income from shop sales in the future.

Recommendations

1 The the financial outturn for 2004/05 be approved

Section 100 D - Local Government Act 1972 - background papers

The following documents disclose facts or matters on which this report, or an important part of it, is based and has been relied upon to a material extent in the preparation of this report.

NB the list excludes:

Published works.

Documents which disclose exempt or confidential information as defined in the Act.

TITLE FILE

Appendix A

Sir George Staunton Country Park Final Accounts 2004/05