Revamp caused museums debts (Museums Sheffield)

MUSEUMS Sheffield built up a £1.7 million debt with Sheffield Council by underestimating running costs at the revamped Weston Park building and due to changes in Government funding, its management revealed.

They also said the organisation received insufficient funding for its programme and was being hit by rising utility bills.

But chief executive Nick Dodd and chairman Sandra Newton said costs have now been slashed and the Trust expects to be in the black at the end of 2010/11.

The Trust faces further challenges, including phasing out in 2012 of a Government grant worth £600,000 annually, funding 28 workers who provide its education service.

But this could be compensated for with a bid to become one of nine groups of city museums recognised as being of national importance.

It could bring in up to £2m of extra each year and a bid is to be made in September.

Mr Dodd revealed the Trust found itself £650,000 over budget at Weston Park Museum in March 2008, six months after it was officially-reopened, after “anticipating lower figures”.

The £600,000 Government grant funding education workers was also switched to be paid retrospectively rather than for the year ahead in 2009, meaning a funding-gap for a year.

Mr Dodd said: “We had three choices - cut, raise more money ourselves or ask the council for more money.

“We did all three. We cut costs, shed staff, froze salaries and cut exhibitions, saving £500,000 a year.

“We have also made more money, including from extra sales in our shops, and secured external funding for a Sports Lab at Weston Park and £200,000 for revamping the Ruskin Gallery.

“We wanted to pay our debts, then the recession came and hikes in bills. Ms Newton added: “Changes affected us such as how Government altered the way it paid a grant to us from being in advance to being at the end of 2010/11.”

She said the rest of the debt came because the trust had not received sufficient funding to “allow us to deliver the service the city wants us to deliver”.

Museums Sheffield, which receives £3m a year, including £2.3m from Sheffield Council, is preparing to make a 15 per cent budget cut as council funding is reduced in 2011/12, making further job losses among its 121 staff “almost certain”.

“We are now in the black but only by a tiny amount,” Mr Dodd added.

A report to Sheffield Council’s audit committee on Monday says two reviews are being carried out into the Trust but Mr Dodd and Ms Newton said the reviews, and two others, have been completed - giving a “clean audit” and recognising the service had been under-funded.

From: http://www.thestar.co.uk/news/local/revamp_caused_museums_debts_1_2988360

Council could write off £1.7m loan to Museums Sheffield

THE trust running Sheffield's museums has run up a £1.7 million debt to the city council - which may never be paid back.

Sheffield Council's culture department is facing a £1.1 million overspend - as it prepares to write off the debts racked up by Museums Sheffield.

A report to Sheffield Council's cabinet meeting tomorrow outlines the extent of the trust's liabilities.

Eugene Walker, of the council's finance department, said the culture department's overspend was directly due to the money owed to them by Museums Sheffield.

He said: "The forecast overspend assumes the following - that current loans to Museums Sheffield of £787,000 are not recovered, a £650,000 outstanding loan is written off, and that debts in relation to insurance recharges and a change of agent, of £278,000, are written off."

He added that the total debt of £1.715 million was being off-set with £240,000 left over from funding to pay for the failed City of Culture bid, bringing it down to £1.475 million.

Mr Walker said the impact of the debt could also be offset with a £170,000 underspend on the major sporting events budget and a £205,000 underspend in libraries.

The £787,000 loan total includes a £190,000 bailout given to Museums Sheffield by the council in August.

Mr Walker said the trust was not expected to exceed its budget further during this financial year.

Coun Simon Clement-Jones, cabinet member for finance, accepted writing off such a large sum of money was "difficult" as the council makes £219 million of cuts.

But he said: "The Museums Sheffield money simply isn't there and the idea is that the trust can go forward without this millstone around its neck.

"The debt goes back to the cost of revamping Weston Park Museum and we have been trying to get the trust on an even keel ever since, which is necessary to allow it to move forward."

Nick Dodd, chief executive of Museums Sheffield, said: "An independent financial review commissioned by Sheffield Council last year concluded Museums Sheffield is operating efficiently but is critically under-funded for the service it provides.

"The review recognised Museums Sheffield needed a significant cash injection to re-capitalise the charity and solve the cashflow problems which were limiting its business capabilities. Museums Sheffield is also carrying a historic debt related to the development of Weston Park Museum.

"We are working with the council to agree a settlement which reconciles both the funding shortfall and the historic debt with the subsequent loan made by the council.

The details outlined in the cabinet agenda are the subject of negotiation and have yet to be finalised."

Museums Sheffield was set up in 1998.

From: http://www.thestar.co.uk/headlines/Council-could-write-off-17m.6701138.jp

 

Derbyshire Archaeology Day 2011

The Annual Derbyshire Archaeology Day will take place at the Pomegranate Theatre  in Chesterfield on 15^th January. Talks will include

 

The Architecture of the Derwent Valley Mills

Recent Discoveries at Ticknall Potteries

New Evidence of Prehistoric Mining at Ecton Hill

Mystery Buildings at Swarkestone Hall and Weston Hall

Western Derbye (Investigations on the Derby Ring Road)

The Hillfort at Fin Cop

 

The event starts at 09.15 and tickets are £10 (or £6 for unwaged).  To book a ticket please contact Chesterfield Museum or phone 01246 345727.