Mr Paul Holland, Senior Finance Manager (Client), introduced his report setting out an amended set of accounts for the year ending 31 March 2018 reflecting the changes requested by the Committee at its meeting held on 22 January 2019.  Mr Holland explained that:

·  The accounts now included entries to reflect the payment of part (£1,273) of the £2,000 annual service charge payment to the Borough Council from the donations box.  As requested by Members, the balance due (£727) would be paid from the Trust’s bank account, and, as this payment would be made in 2018/19, a creditor figure for this amount was shown on the Balance Sheet.

·  Following discussions with the Museums’ Director, it appeared that there was an understanding that the donations box could be used to pay for items such as the service charge, and the decision had been made to make the payment directly to the Council rather than via the Trust’s bank account.  For clarity and transparency, it would be more appropriate in future for any such payments to go via the Trust’s bank account.

·  The balance of £727 had not been formally written off, but since it had not been considered to be a significant figure in the context of the Museum budget as a whole, it had not been actively pursued.

The Committee continued to be concerned about the use of donations to the Trust and to the Museum generally.  It remained of the view that the Trust should meet its financial obligations to the Council in full.  In this connection, it was suggested and agreed that the Trust should be seeking a Service Level Agreement with the Council defining the services which are provided by the Council and paid for by the Trust.  This would assist the Trust in fulfilling its obligations in relation to the preparation of financial statements for each financial year which give a true and fair view of its financial activities during the year and of its financial position at the end of the year.  It would also assist in the preparation of accurate budgets and financial projections which would inform decision making regarding the Trust and the Collection going forward.

RESOLVED:  That

1.  The amended accounts for the year ending 31 March 2018, attached as Appendix 1 to the report of the Senior Finance Manager (Client), be approved.

2.  The Trust should seek a Service Level Agreement with the Council defining the services provided by the Council and paid for by the Trust.