Business group may have to repay $35,000

The Ettalong Beach Business Group may have to repay almost $35,000 grant money if it cannot convince Gosford Council that it has the ability and capacity to manage grants totalling $75,000.

Council was told last Tuesday that the group had repeatedly been late in supplying audited accounts, despite several requests to supply them.

The council's director economic and community development Ms Colleen Worthy-Jennings said that the council had not received audited accounts for 2012-13 nor any reports on the performance measures which were required under the grant condtions.

Attempts to meet with the group had also failed.

Ms Worthy-Jennings said the delays in receiving information and the inability to meet with the organisation's executive raised some concern regarding viability and capacity to complete the projects planned and expend Council grant funds for the benefit of the Ettalong Town Centre and the community.

The council has decided it will not provide any further funding to the Group and will require repayment of the current total equity in the account if the Group cannot provide satisfactory information.

The Group will have until February 1 to provide clear evidence of its ability and capacity to meet all requirements under Council's grant policy and its business plan, or repayment would be required.

The Ettalong Beach Business Group won the grant when Council endorsed the provision of seed funding in April 2010.

Council would pay $25,000 a year for three years, subject to the provision of audited accounts and approved business plans which measure progress against agreed key performance indicators.

Council at its meeting on July 3, last year, received a progress report and noted the Ettalong plan review dated October 2011.

At that time Council had received unaudited accounts for 2011-12.

In May, Gosford Council's director economic and community development Ms Colleen Worthy-Jennings wrote to the Group requesting the submission of audited accounts for 2011-12 and a revised business plan.

After repeated requests, the audited accounts 2011-12 dated August 14, 2013, were received on September 5 along with a Reviewed Business Plan dated August 2013.

The revised business plan provided an update on all projects originally planned and indicated that many of the projects had been delayed, some due to the foreshore improvements and others subject to ongoing negotiation with agencies including RMS and Council.

The projects completed were the purchase and placement of flags on council provided poles and the website, which has had some development but it is indicated further work is to be undertaken.

A review of all financial reports 2010-11, 20011-12 and 2012-13 (unaudited) showed the principal income was from grants (mainly Council $50,000) and the Ettalong Beach Festival.

Correspondingly, expenditure has been principally on the Festival with approximately $5000 in total spent on the specific projects flags and website in 2012-13.

Income from membership appeared to be declining, $970 in 2010-2011 and $200 in 2012-13.

According to the report to council by Ms Worthy-Jennings, while council recognised the value of the members and their contributions to Ettalong, the business group must meet the criteria to receive annual funding of $25,000 per annum for three years.

To satisfy the requirements of council's policy, it must present a business plan each year that sets out anticipated activities for the year ahead, with agreed short term targets and key performance indicators; the extent to which KPIs have been achieved will influence future support by Council and within three months of the end of the financial year, the group must produce an audited set of accounts.

The revised Ettalong plan indicated a total anticipated expenditure of $74,820 with a current total equity of $34,236.20 in the unaudited 2012-13 accounts.

Since the receipt of the revised plan and accounts, attempts had been made by council to meet with the business group executive.

A meeting was arranged for December 5 but then cancelled by the group on that day and at the time of writing, Ms Worthy-Jennings said no further contact had been received.

Gosford Council Agenda SF.30, 17 Dec 2013