Culture Perth & Kinross Trustees Annual Report 

Year ending 31 March 2020 

Financial Review

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In 2019/20, our 5th year of operation, Culture Perth & Kinross generated total income of £3.73 million including restricted fund income of £557k.

 

Costs Incurred of £2.86 million has resulted in a surplus of £311k, prior to accounting for the loss on the defined benefit pension scheme, and transfers between funds. Group net liabilities as at 31 March 2021 were £1.28 million (2020 - £1.19 million). Unrestricted funds at the year-end were £606k of which £282k were designated.

 

The restricted funds, of £476k relates to funds which are not available for general purposes of the charity as they have been restricted by the donor to specific purposes. 

 

Core funding is provided through a service level agreement with Perth and Kinross Council. This provides 82.7% of operating Income for the group with other funds coming from trading activity, ticket sale income and donations. Grant funding of £557k was also received in the year but the majority of this is restricted.

 

Funding for 2021/22 has been agreed for the period to 31st March 2022. Anticipated funding reduction in 2020/21 was mitigated by service closures and use of the Government’s Coronavirus Job Retention Scheme (Furlough) scheme during the second period of full lockdown in Scotland. The Pension Liability is underwritten and guaranteed by Perth and Kinross Council as part of the “TUPE” of staff to Culture Perth and Kinross Limited, which allows the Board to assess going concern at operational surplus, whilst working to reduce such liability. The Charity will respond to anticipated further reductions in core budgets with plans to expand trading opportunities and explore new avenues open to this charity such as increased donations and fundraising. Directors along with the chief executive review the business strategy and are satisfied that they can prepare accounts on a going concern basis. The service level agreement with Perth and Kinross Council has been agreed for 2021/22.

 

The full results for the period ended 31 March 2021 are set out on pages 19 to 51 of the Culture Perth & Kinross Annual Report and Consolidated Financial Statements for the year ended 31 March 2021. This is available on our website www.culturepk.org.uk/about-cpk/cpk-governance/