Agenda item

To receive a report of the Trustees and Audited Financial Statements for the year ended 31^st March 2022 for Burnley Leisure. 

A presentation was given on Burnley Leisure Trust (BLT) achievements and performance, alongside the report of the trustees and audited financial statements for the year ended 31^st March 2022.

It was explained that 2021/22 business plan had focussed on recovery from the pandemic and continuing to work in partnership with Burnley Together, delivering volunteer programmes and engaging in community support.  This year was about consolidating their position, financially and usage and looking to refresh the agreements with the Council, producing a new 3-year strategy that tied into the Council’s Medium Term Financial Strategy and provide a framework for annual business plans. 

Concerns were raised in connection with Burnley Leisure not attracting entertainment like other areas in Lancashire, and the long-term strategy was questioned.  Discussions had taken place but there remained a problem with theatres having a deficit despite increased capacity.  However, linking in with Blackburn with Darwen Borough Council had helped with the buying power to attract some acts.  It was also reported that a Cultural Strategy Manager had been appointed in recent months and work was being undertaken with the Council regarding next steps.  There had been conversations with the Arts Council with regards to festivals, but funding was still limited.  There would be an update to the BLT Board in April. 

The report format was questioned in terms of details and being representative of the organisation.  It was explained that the report was condensed and to the point to meet the requirements of Companies House.  Assurance was given that the next annual report would be more tailored for Scrutiny.

A query was raised in respect of the pension deficit, which had transferred from the Council and was part of the LCC scheme.  An agreement was in place to deal with it, but it now comes under BLT accounts. 

It was queried what the ‘raising funds’ category in the financial statement encompassed.  Gerard Vinton advised that it was an accounting technique that the auditors/accountants determine against strict submission guidelines.  Gerard Vinton would ask the auditors to provide a breakdown of figures.

It was reported that there were exciting times ahead in terms of growing the business and looking for opportunities.  Refurbishment work was planned for the gyms at Padiham and St. Peter’s at the end of the year.  They had also been successful in winning the rotunda contract at Towneley Park.  New programmes were being looked at, tying in with the health service, such as weight management, fitness, and smoking cessation.

Councillor Whitaker raised a question on what the business and technical support of the Governance and Support costs related to.  Gerard Vinton would get the answer from the auditors and forward on the information. 

A query was also raised on trade debtors and Members were informed that this was a snapshot at the end of the financial year and monies had come in over that last 12 months.  Up to date figures were provided to the Executive on a quarterly basis. 

It was highlighted that the amount the Council gives to the Leisure Trust had increased due to the pandemic.  As a result, the following questions were put: -

·         Were any future pitfalls expected or anticipated?

-       BLT membership numbers were continuing to rise, with a focus on being competitive with pricing, providing new equipment and placing emphasis on growing the numbers. 

-       With regards hospitality, the current cost of food was presenting challenges, however BLT still felt well positioned to deal with impact.

·         Was St. Peter’s leisure facilities at full capacity?

-       It was reported that the building was split into two parts, namely Leisure and Health Services.  The Leisure side of St. Peter’s was heavily used, however the health side had vacant spaces.   

·         Was the Council’s contribution to BLT to be reduced?

-       A commitment to this couldn’t be given for this financial year due to the cost-of-living crisis.  There was a dependence on factors and other services to offset costs.  Other contracts were being looked into to bring costs down, but the current situation was a challenge.  Initial contracts were 15 years and currently in year 10, therefore negotiations needed to start.  

·         Will BLT stand on its own?

-       Not in the next 5 years.

A discussion took place regarding the business and marketing strategy.  It was suggested that there be an analysis of what the competition was and the intended response. 

It was questioned why funds set aside for arts development and cycling hadn’t been touched, and it was reported that due to Covid these projects hadn’t been pursued.  There was an emphasis on being a viable business and would be picking up projects to generate income. 

The Committee voiced its frustration on the lack of information relating to questions and requested that alongside the type of report submitted, there needed to be a report on the strategic plan.  It was also felt that the report needed to be timelier.  It was agreed that this would be incorporated in future years, submitted earlier, and a financial officer would also be present to answer any questions.         

RESOLVED –           (1) That the presentation and report be noted; and

(2) That future reports be timelier and more detailed.