05 november 2009
COMPTROLLER & AUDITOR GENERAL ISSUES REPORT
ON
JERSEY HERITAGE TRUST
The Comptroller & Auditor General, Chris Swinson OBE has today (05 November 2009) published a report on a financial review of the Jersey Heritage Trust (‘the Trust’).
Undertaken following an invitation from the Minister for Education, Sport and Culture and the Chief Officer of the Department for Education, Sport and Culture, in the light of public concern over the financial condition of the Trust and suggestions that it may be obliged to terminate certain of its principal activities, Mr. Swinson’s review examines the financial condition, governance arrangements and financial management of the Jersey Heritage Trust.
The Trust’s principal source of funding is a States’ grant. Mr. Swinson reports that, since 2005 the Trust has reported an annual and growing deficit. The 2009 deficit is expected to reach about £190,000, even taking into account an exceptional grant of £200,000 from the Department of Education, Sport & Culture (ESC).
By the end of the year, if no action is taken and the Trust’s bank extends the necessary facility, the Trust’s overdraft will amount to about £800,000.
The Trust’s poor financial condition can be attributed to a number of causes, including increasing costs and declining visitor numbers, but also a lack of corrective action; a lack of successful commercial management; governance arrangements which have not corrected these financial weaknesses, and a lack of action by ESC. The report also expresses concern about the relationship between ESC and the Trust itself.
Mr. Swinson says that the States needs to decide how much financial support it is going to give the Trust and how that support is to be made available. The Trust should then accept that it must operate within the support provided by the States together with whatever income it can generate from other sources. The report suggests how the Trust could be given a sound financial footing through considering savings and further developing other income.
Safeguarding and promoting the Island’s heritage is important work, as is helping everyone to understand and take pride in it. This work requires the Trust to have a deep understanding of the character and value of the heritage. But this understanding alone will not guarantee long term success. The Trust is in competition for talent, attention and financial support. To succeed, Mr. Swinson concludes, the Trust must demonstrate the quality of management that will be needed to surmount the competition.
ENDS
For further information, please contact:
Rozena Newell
T: 629800 / 07797 733553
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