Angus Alive has notched up another loss-making year.
The arms-length organisation which runs the sports and museums services for Angus Council, recorded a £585,000 net deficit for 2017-2018.
This is some £336,000 more than the net deficit of £249,000 the previous year.
In a report which went before members of Angus Council’s scrutiny and audit committee in Forfar, Angus Alive chief executive Kirsty Hunter said the trust’s operational surplus for the period ending March 31 2018 was £664,635.
However, when actuarial pension adjustments are taken in to account, the company’s consolidated financial position shows a net expenditure of £585,365 which, on paper, created the deficit.
She said: “It is really important for the charity to have an operational surplus to ensure it can continue to invest in equipment and facilities to ensure the people of Angus will want to use these facilities and they will be of the standard they expect.”
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“Once the actuarial pension adjustment of £1.25 million is made, after we look at the operating position, the final net expenditure is a deficit of £585,365, but I would like to stress that is only as a result of the pension adjustment.”
She also explained that, for the first time, a £1.9 million expenditure for Angus Council Support Services had been included.
After the meeting Ms Hunter described the impact the actuarial adjustments has made on the operational surplus.
She said: “The actuarial pension adjustment required in 2017-18 increased by £604,000 and has therefore increased the net expenditure position, although in both 2016-17 and 2017-18 an operational surplus was achieved to facilitate contributions to be made to the Repair & Renewal Fund and the charity’s reserves.
“The required actuarial pension adjustment is not an indicator of the performance or direction of the trust, but does represent the complex nature of pension liabilities that many organisations and charities currently face.
“Angus Alive continued to make improvements to service provision while meeting savings targets throughout 2017-18.”
Regarding a £1.9 million expenditure for Angus Council Support Services, not included in the previous year’s financial review but included for 2017-18, an Angus Council spokesman said: “This entry relates to inclusion of an amount for support services Angus Council provide to Angus Alive, but which are not actually charged for and have been provided to the charity since December 1 2015.
“These are classified as “donated services” and the entry appears in 2017-18 following clarification from Angus Alive’s new external auditors of the accounting treatment of such services.
“The entry is neutral on the Angus Alive bottom line position as the estimated value of these services is included as both expenditure and income.”
