(a)

a forecast deficit of £308k had been reported to the February 2011 Joint Committee meeting, however there had been a favourable variance of £5k which had resulted in an overall deficit of £303k for 2010/11;

(b)

variations on the revenue outturn 2010/11 were attributed to the following main areas –

?

House and Park

?

the Stables

?

Barrow Shop

?

plant sales

(c)

there had been a significant change in the ‘value of fixed assets’ through the reclassification of assets and revaluations of the outbuilding complex, relating to the Statement of Accounts;

(d)

in the opinion of internal audit the overall financial regulations were of a good standard; points had been raised regarding the need for appropriate action to increase the Joint Committee’s level of reserves and review the risks.

(e)

the first nine weeks of trading had been strong particularly in the Cremyll shop;

(f)

both the staffing costs (£23,000) and the cost of sales (£23,000) for the Cremyll shop were correct;

(g)

the Barrow Park shop operation was continually under review (it was currently closed on a Friday and Saturday); however, future options for the shop would be considered (eg an extension to the catering operation in the Stables);

(h)

although there had been a reported deficit for the Cremyll shop, it was important that the shop remained open; by employing one member of staff in the shop over the weekend this provided a point of contact for members of the public and negated the need to employ other members of staff (which would result in overtime rates being paid) thus saving money;

(i)

it would be difficult to employ voluntary staff to work in the Cremyll shop, as there would be no guarantee that it could be fully staffed at the required times;

(j)

the business plan included options to bring additional activities into the Park without impacting on its historical importance; a report would be submitted to the July 2011 meeting of the Joint Committee regarding property options and the installation photovoltaic cells;

(k)

the Park received a fixed income from the rent of its chalets; a ground rent review was due in September 2011; a bench marking exercise had been undertaken which compared the ground rent of chalets on private land in the area;

(l)

open discussions had been held with the National Trust where various options had been considered; currently the Trust was not interested in the Park (the Trust was undertaking a national review of its business plan relating to its properties and their future operation); however, the Trust had not ruled out future consideration of this matter;

(m)

it was unlikely that additional funding for the Park would be available from Cornwall Council, as in previous years;

(n)

a significant amount of work had been carried out on the business plan; the key aim of the plan was to achieve future sustainability for the Park, in order to reduce any future contributions from each constituent authority;

(o)

work was being undertaken by Cornwall Council on a water transport strategy for the Tamar; the key aims of the strategy was to increase the footfall within the Park and link the settlements along the Tamar.

(1)

to note the report;

(2)

to note that the constituent authority accounts have reflected the financial support required for 2010/11 to address the revenue shortfall

(3)

that the Statement of Accounts is recommended for approval;

(4)

that the Annual Governance Statement is recommended for approval.