Minutes:
Mr. Max Hunt CC asked the Chairman the following
questions under Standing Order 7(3):-
Third Sector Grants
”1. In
view of some concerns expressed about the financing of the George Ward Community
Centre in Barwell, understood to be leased by the George Ward Centre Ltd (GWC
Ltd) and owned by the County Council, could the Chairman tell the Commission:
(a)
The estimated annual fixed
costs of running the Centre for the next three years;
(b)
The estimated income for
the next three years, the sources of that income, and any related costs;
(c)
Who is liable for meeting
any deficit, year on year and what reserves are known to be available to GWC
Ltd. to meet this;
(d)
The names of the current
Trustees/Directors and the other shareholders or body who are responsible for
appointing Trustees or Directors?
(e)
To whom and where annual
accounts and annual reports are required to be presented annually (apart from
Companies House).
2.
Would he confirm that the County Council will
underwrite losses of the Company up to the value of £20,000 per annum until
2012/3 and that £20,000 has already been paid in 2010?
3.
How many other community
facilities in receipt of financial support from the County Council are managed
by companies limited by guarantee, and could he list these?
4.
Given that some personal
responsibility and a level of financial liability falls upon individual
Directors or Trustees when managing community facilities, what training and
advice does the County Council offer to prevent such companies from getting
into personal or collective difficulties?
5.
Can he confirm which
community organisations (other than Parish or Town Councils) managing such
facilities and in receipt of grants from the County Council, have submitted
Annual Accounts for the last financial year and how many are outstanding?”
The Chairman replied as follows:-
”1. The George Ward Community Centre is owned by Leicestershire County
Council and is leased to the George Ward Centre Ltd.
(a) The estimated costs of running
the Centre are as follows:
§
2010/11 - £70,612;
§
2011/12 - £99,938;
§
2012/13 - £103,266.
(b) The
estimated income for the Centre is as follows;
§
2010/11 - £75,026;
§
2011/12 - £101,088;
§
2012/13 - £114,599.
The principal sources of income are room rental, event hire, County Council
funding and a County Council utility contribution reflecting the utility costs
of the library located within the Centre.
(The
figures in the answers to (a) and (b) for 2010/11 reflect the opening of the
Centre from July 2010 onwards. All estimates are for a March to February
financial year. Alternative projections based on additional staff and room
rental projections have also been prepared by the Company.)
(c)
George Ward Community Centre
Ltd. is responsible for managing the Centre, including meeting any deficit that
may arise. Reserves have not yet been generated within the time the centre has
been in operation;
(d)
The current Directors of
the company are Tricia Smith, Ken Barsby and Paul
Cooney. The current Directors were appointed by a meeting of the George Ward
Community Project Group held on
(e)
Annual accounts and reports
are to be provided to the County Council, which is providing tapered revenue
funding to help enable the Company to establish as a sustainable operation.
This funding amounts to a total of £180,000 over three years from the opening
of the Centre.
2.
This year, two quarterly
payments of £20,000 each have been made. There is no commitment to underwrite
any losses at the Centre.
3.
Community centre facilities
in receipt of funding from the County Council and managed by companies limited
by guarantee are as follows:
§
§
Fearon Hall, Loughborough;
§
Shree Ram
§
Gorse Covert Community
Centre, Loughborough;
§
Hugglescote, Snibston and Ellistown
Community Centre;
§
4.
The County Council does not
provide training on financial liability issues, but would expect organisations
to seek advice and information as necessary from relevant organisations such as
the Charity Commission. Voluntary Action LeicesterShire can also assist with
advice and providing contacts for information.
5.
Annual accounts have been
received from the following community organisations that are responsible for
managing the above facilities:
§
§
Fearon Community Association Ltd.;
§
Gorse Covert Community
Centre, Loughborough;
§
Hugglescote, Snibston and Ellistown
Community Centre.
Draft accounts have been provided by Westfield Community Development
Association and audited accounts are to be provided at the
Mr. Hunt asked the following supplementary question
in relation to Question 1:
“Can I be provided with
further information in relation to the accountability of Management Committees
and Public Limited Companies?”
The Chairman replied to the effect of:
“I think this is a matter on
which you are entitled to seek officer advice on outside this Committee.”