Contact: Mike Walls Tel: 01962 847102; email: [email protected]

With the concurrence of the Chairman, under Section 100(B)(4)(b) of the Local Government Act 1972, this matter was included on the agenda to ensure that timely decisions are taken with regard to the finances of the Country Park.

1 Introduction

1.1 This report presents the outturn for the 2006/07 financial year (year ended 31 March 2007), and outlines the budget for the current financial year.

1 2006/07 Financial Outturn

1.1 Appendix A gives the overall 2006/07 outturn summary for the Park's operations. Appendix B summarises the outturn by cost centre.

1.2 Appendix A shows that the Park achieved an outturn £17,883 better than the original budget, a further improvement of £7,830 compared with the revised budget set at the last meeting of the Joint Management Committee (JMC). This is primarily due to increased gate receipts in the latter half of the year.

1.3 This has enabled the Park's accumulated deficit to be paid off in full one year earlier than planned. This represents an excellent achievement by the Park and its management.

1.4 There were a number of variations against budget in all the cost centres (see appendix B). Significant variations are as follows :

· Management (+£13,544) - the increase in the price of utilities - particularly gas and electricity - accounted for £11,300 of this overspend. An extra £7,300 was incurred on maintenance of the premises, uniforms, promotions and communications, but these were partially offset by minor savings in other budget headings (mainly staff).

· Operations and Education (-£33,321) - expenditure was broadly in line with the budget, while income was significantly better than forecast. Gate receipts were £39,200 above budget.

· Commercial (+£11,946) - there have been mixed fortunes with the commercial operations of the Park. In the Shop and Catering operations, sales have been slightly down and the net return has been lower than forecast (£10,100 and £11,500 respectively). This is being addressed by the management team. Conference and Events, on the other hand, have returned £9,700 more than forecast. This is due to expenditure being artificially low as full staff costs are not yet charged to this cost centre. Income was significantly better than forecast. The budgets for all of these operations are being reassessed in 2007/08.

1.5 Overall the operating surplus (after including partner contributions) of £17,883 made by the Park was more than that allowed for in the revised budget by £7,830 and can be summarised as follows:

	Revised budget	Outturn
	2006/07	2006/07
Expenditure	885,200	918,165
Income	669,600	710,395
Net Expenditure	215,600	207,770
Funding from Local Authority Partners	225,653	225,653
Surplus	10,053	17,883

2 Reserves

2.1 It was reported to the November meeting of the JMC that the forecast surplus for 2006/07 would reduce the accumulated deficit on the Park's reserves to £6,826. After paying interest on the overdrawn account and adding in the improved revenue surplus the deficit has been overturned to produce a reserve surplus of £912 - one year ahead of schedule. The Park Manager and his team are to be congratulated on this achievement.

2.2 It is now recommended that the reserves should be substantially increased at the end of the 2007/08 trading year. The 2007/08 budget has been refined taking into account the performances of the last two financial years, as outlined below, with more detail in appendix C.

3 2007/08 Budget

3.1 The original budget for 2007/08 was presented and agreed at the November JMC. Since then, in the light of strong performances in the latter stages of 2006/07, the Park Manager has amended the budget. He has also taken this opportunity to reflect the fact that although the Easter Bank Holiday falls in March 2008 (in the 2007/08 financial year) the school holidays do not commence until April 2008 (in the 2008/09 financial year). This has enforced a reduced income forecast for 2007/08. The amended budget is shown in Appendix C.

3.2 As a result of the above the operating budgeted surplus (after partner contributions) has been reduced to £27,822, a reduction of £9,100 on the original budget for 2007/08. This "lost" income will be received in 2008/09 during the two week Easter school holiday in April 2008.

3.3 Although the 2008/09 financial year benefits from the two week Easter school holiday in April 2008, there is no Easter Bank Holiday in 2008/09. There is, therefore, a need to build up the reserves to cope with this fluctuation in cash flow. Reserves will also be required to help fund future investment in the Park's infrastructure, and to contribute to match funding the HLF scheme.

3.4 The budget for 2007/08 has been set against a background of continuing financial and performance pressures - both local and national - on the Park. The Park management team are determined to consolidate the success of 2006/07, and plan to build up the reserves to deal with these pressures and the challenges of the Ten-Year Plan.

3.5 The amended budget will only be possible if the revised prediction for visitor numbers is achieved.

3.6 The 2007/08 budget will be formally revised as usual in the autumn to take into account the performance in the summer and the expectations for the remainder of the financial year.

4 Financial Summary

4.1 The Park had a very good year in 2006/07, which has continued the trend established in 2005/06, and is providing a solid base for the future. The new financial management reporting structure is proving to be effective. It is now in its third year and is continually being refined and improved. The take up for the conference facilities is still slow, but it is steadily improving, and will soon require a dedicated member of staff to deal with the increasing number of enquiries.

4.2 The financial year 2006/07 saw the planned improvement to the facilities in Leigh Park Gardens which should add to the visitor experience and start to make a contribution to offsetting the financial cost of the Park.

4.3 The visitor numbers in 2006/07 were the highest ever recorded, and are covered in the Park Manager's report elsewhere on the agenda.

4.4 The Park staff have worked hard to control costs and to generate additional income by encouraging new and repeat visits. This has resulted in the reserves being once more in the black, and the future prospects for the Park looking very promising.

Recommendations

1 That the financial outturn for 2006/07 be approved.

2 That the amended budget for 2007/08 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 2006/07