Agenda item

Report attached.

The Leader of the Council introduced a report of Councillor Noordad Aziz, Chair of the Resources Overview and Scrutiny Committee, which set out that Committee’s recommendations with regards to three individual requests for financial support towards the operational management of Council buildings.

The Leader of the Council confirmed that a letter had been sent to Mercer House 1842 requesting further information, following the meeting of the Overview and Scrutiny Committee, but no response had been received to date.  Accordingly, the Cabinet would not consider this matter further today, but it was hoped that information would be available later in the year.  The matter might also be referred back to the Resources Overview and Scrutiny Committee at that time.

Councillor Marlene Haworth reported that she had attended the Overview and Scrutiny Committee meetings and was satisfied that the issues had been handled fairly and professionally by the Chair and the Committee and that recommendations had been proposed which ensured the use of public money was properly accounted for.  Councillor Munsif Dad indicated his support for the work of Hyndburn Arts Ltd and commented that Oswaldtwistle Civic Theatre and Arts Centre remained an important venue in the Borough.  In the interests of transparency, the Leader of the Council indicated that Gayle Knight, Managing Director of Hyndburn Arts was a member of the Labour Party and her husband was a serving Borough Councillor.  However, her involvement with the Arts Centre pre-dated her political connections.  In addition, the Management Board of the company comprised cross-party representation.  The Centre worked across the Borough and further afield to provide a vibrant arts and cultural offer.  The public were rallying to support the Centre and a special show would be provided soon by local actress and celebrity, Julie Hesmondhalgh.

Approval of the report was not deemed a key decision.

Reason for Decision

The Resources Overview and Scrutiny Committee were asked to review three individual requests from external organisations for financial support towards the operational management of Council buildings.

The requests were as follows:

Hyndburn Arts Ltd – requesting £30,000 towards the operational management of the Civic Theatre and Arts Centre.  The main reason for the request was due to a number of unforeseen circumstances, particularly the cancellation of several high profile events (which was out of the control of Hyndburn Arts Ltd) occurring in a short space of time.

Churchfield House Ltd – requesting £10,000 towards the operational management of Churchfield House, Great Harwood.  The main reason for the request was due to an unexpected water bill of over £6,000.  In order to prevent this happening year on year, Churchfield House Ltd will apply for charitable status which requires a certain level of reserves to be held.

Mercer House 1842 – requesting £5,000 towards the operational management of Mercer House and the Arthur Wilson Centre.  The main reason for the request was for maintenance needs.

The three organisations were invited to report to the Resources Overview and Scrutiny Committee on 30^th July 2019 and to respond to questions.  The Committee asked a series of questions in advance of the meeting to all three organisations, designed to increase understanding of the financial circumstances of the requesting bodies.  Additional questions were also asked by Committee members at the meeting.

After the meeting on 30^th July 2019, the Chair of the Committee received some further information relating to the request from Hyndburn Arts Trust.  The Chair therefore called this particular request back to Overview and Scrutiny for further review at a meeting on 5^th September 2019.  At this meeting, additional financial information was provided by the Trust.  Upon consideration of this further information and questioning of the Director, the Committee decided to amend their original recommendation (which was to award £30,000 urgently) to awarding the full amount in instalments.

The Committee thoroughly reviewed all information made available to them over the course of the two meetings and are confident that the recommendations made are in the best interests of the Council.

Alternative Options considered and Reasons for Rejection

Cabinet may choose to agree to any or none of the recommendations made by the Resources Overview and Scrutiny Committee.

Resolved                      (1)  That Cabinet grant £30,000 of funding to Hyndburn Arts Ltd over 3 instalments, subject to the following:

Tranche 1: £10,000.00 to be released immediately

Tranche 2: £10,000.00 to be released subject to the following (expected to be on or after 31^st October 2019)

1.     A documented plan to be submitted to the next Overview and Scrutiny meeting undertaking a review of the board of directors including a skills audit to identify any skills gap on the board as well a strategy to attract new board members to offer advice and guidance in addressing any shortfall identified in the Skills Audit.

2.     With assistance from Finance Officers at Hyndburn BC revamp and overhaul the finance report that is submitted to the board to include commentary as well as submission in a timely manner.  This report on a bimonthly basis will be submitted to O&S with a review by the finance officer to state it agrees to underlying records.

3.     To have a set schedule of monthly board meetings out to March 2020.

4.     To start and give a time frame for when the accounts for Year Ending 31/03/19 will be finalised and submitted to Companies House.

5.     To provide an update on the fundraising plan and provide commentary where variances have occurred.

6.     To undertake a review of cost savings measures and submit to board for discussions as well as create an action plan.

7.     To highlight any funding opportunities that Hyndburn Arts have bid for and the outcome.

Tranche 3: £10,000.00 (19^th December 2019)

1.     To have met all the conditions set out in Tranche 2 and submit evidence of this to O&S over a 3 month period to highlight the changes.

2.     To provide the forecast 2020/21 using the new format from the financial review.

(2)  That Cabinet provide urgent funding of £10,000 to Churchfield House Ltd to contribute towards the unexpected water costs and application for charitable status, on the understanding that should Churchfield House Ltd manage to negotiate a reduction in their water bill, the remaining balance is returned to the Council.

(3)  That Cabinet notes that, due to a failure by Mercer House 1842 to provide the financial and other background information requested by the Resources Overview and Scrutiny Committee, that Committee was unable to make a recommendation with regards to Mercer House 1842’s request for £5,000 and therefore referred the request back to Cabinet to make further enquiries and to determine the matter.

(4)  That Cabinet notes that a request for further information from Mercer House 1842, as referred to in (3) above has been made on behalf of the Cabinet.

(5)  That Cabinet notes that, over the next 2 years, the Resources Overview and Scrutiny Committee intends to invite all organisations, charities or community groups which manage Council buildings to report on usage and their financial position.