Glasgow Council-run charities facing income shortfall

Glasow city chambers

Income down but council says it has accounted for the losses  

13th February 2018 by Robert Armour 1 Comment

Glasgow’s 10 council-controlled charities have posted a £2m income shortfall in the last three months.

A monitoring report into the arms length external organisations (Aleos) shows they are not making as much income as was anticipated.

Two of its biggest Aleos show the greatest shortfalls: Cordia, the council’s care and catering arm; and Glasgow Life, which runs the city’s museums, libraries and leisure centres.

The report stated: “Forecast shortfalls in their surplus are reporter for Cordia, City Property and City Building which is likely to impact on the discount which is due to be returned to the council. City Property and City Building are mitigating this shortfall with the use of reserves and carry forwards.”

The council is due to set the budget in the next few weeks with further cuts expected to departments.

A spokesman for the City Council said: “Both organisations are on track to return a surplus to the council, however, the report details that, at quarter three, these are below the levels budgeted at the start of the financial year.

“These are known issues that are taken account of in the council’s overall financial position.”

Comments

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14th February 2018 by A J Murison

Seems strange that any "surplus" funds should be given to a non charity (i.e. the Council). I understood charitable assets should only be used for charitable purposes. Are there contractual arrangements that compromise charity law here? You can understand the concerns over ALEOs & charity law. The position of Councillors as trustees also seems problematic.