To review the outcome for 2020-2021 and the draft budget for 2021-2022
Purpose of Report
To provide the committee with an updated potential outcome for this year and a draft Princess budget for next year.
The Princess has been closed since the 17th March so it has not traded in this financial year’s set of accounts. Staff have been working to reduce costs and have provided forecasts based on different situations.
Financial projected outcome for year 2020-2021
The Arts Council Cultural Recovery Fund (CRF) award to the Princess includes an amount to cover some losses in income. The funding enables the theatre to provide a range of solutions to support its recovery in terms of activity from January, these potential solutions are still in the planning stages. Please keep in mind that I have therefore provided an estimated end of year figure based on unknown income.
The CRF grant will put a contingency of £12,254.59 into an earmarked reserve for use in covering losses to income. The reserve is not shown in the draft budget.
Policy implications Financial Regulations
ANNUAL ESTIMATES (BUDGET) AND FORWARD PLANNING
3.1 Each committee shall review its forecast of revenue and capital receipts and payments. Having regard to the forecast, it shall thereafter formulate and submit proposals for the following financial year to the council not later than the end of November each year including any proposals for revising the forecast.
2021-22 Draft budget proposal see separate sheet
Important points to note:
The budget currently includes a conservative amount of income that has been confirmed in terms of bookings. It does not include the café rental or a further sum of confirmed bookings (see below).
Given the current situation and the lack of clarity about what the next year will look like or how COVID-19 will affect sales & events, I advise a cautious approach to adding increased income estimates to the budget. Councillors should be aware that if the income target isn’t achieved, the town council will be required to resolve how this gap would be funded.
Points to consider:
- This budget does not include any income for the café rental as there is currently no lease in place. The income expected if the café was let is £4,200.
The committee could agree to include some or all of this income into next year’s budget. Code 1065 108 Café Rent
2. This budget includes the lettings income agreed at the last meeting of £10,672, the BDO has stated there are a further £5,409 of confirmed bookings that could be added to this figure.
The committee could agree to add some or all of this income into next year’s budget. Code 1010 108 lettings
3. To note that when the telephone and broadband service has been reviewed, any changes to the budget 4021 108 will be adjusted and agreed by full council.
Report author: Sally Jones
Report Date: 20th October 2020