Decision details

The Committee considered the report presented by the Health Improvement and Community Relations Manager which presented the Active4Today (A4T) Business Plan 2021/22 and the latest performance report to end of December 2020 for Committee consideration and approval.

It was reported that the base budget for 2020/21 forecast a deficit at year end of £275,120, this was revised to £735,395 at the end of period 7, October 2020, and due to the ongoing challenges of closures the latest forecast to year end had now escalated to £997,104.  Total income was anticipated to be down by £1.44m a reduction of 46.7% of target income for the year.  This was offset by anticipated savings of circa £725k made up from staffing, £360k, premises £205k, supplies and services £160k.  In addition income through grants of circa £85k and the management fee payments from the Council of £202k had contributed to reducing the overall deficit to date. Assuming the position did not change significantly until year end the overall financial outturn would require an additional payment of £247k to balance the accounts to zero for the year, reducing to £222k if further Government grant was received, estimated to be circa £25k which was linked to the national lockdown closure instructions.  In addition an application had been submitted to the National Leisure Recovery Fund, a MHCLG/DCMS/Sport England grant support scheme, to secure a share of funding made available which would equally contribute towards reducing the anticipated outturn position and improve the company’s final position.  The amount of grant offered had yet to be confirmed and this fund only related to the recent November lockdown and did not extend to the current National Lockdown although it was hoped that further government assistance would be forthcoming in due course.

A Member sought clarification regarding the financial position of Active4Today and whether the company would be forced into liquidation.  The Business Manager – Financial Services confirmed that the Council had agreed to fund £490k in September 2020, from the Covid fund towards the £700k deficit.  Around £200k being contributed from Active4Today reserves and it was anticipated that further grant support would be received through funding from Sport England to supplement the shortfall.

AGREED            (with 8 votes For and 1 vote Against) that:

(a)      the Active4Today Business Plan 2021/22 be approved;

(b)     performance to Period 9 (December) be noted;

(c)       Active4Today presents its 2020/21 draft accounts by early April                    2021 in order that a the Director – Housing, Health and                                Wellbeing, with delegated approval, can agree what level of           contribution is made to the Company, for 2020/21 based on the                   outturn position;

(d)       the full year financial position be reported to the June                                  Committee; and

(e)       the initial early forecast outturn position for 2021-22 be noted.