Deloittes Report Backs Arts Centre Proposal But Has Shortcomings

The Council released the 15 May Deloittes review of the Arts Centre's cash flow worries. The report raises more questions.

Describing the risk as “real” in its financial review of 15 May, Deloittes has surmised that without a cash injection, the Arts Centre will go insolvent.

“Currently the Trust Board is working through an asset management planning process which will better define its future capital expenditure requirements but this is not currently known”.

Deloittes

On Friday, the Arts Centre said “The Deloitte reports vindicates the position of the Trust as presented in our Proposal for Funding and in our Submissions to Council”.

On 2 May, in the council chamber, Arts Centre director Philip Aldridge and Board Chair Murray Dickinson had told councillors it “substantially” backed the Deloittes report.

Source: Christchurch City Council

As recalled, the Arts Centre has asked the Council to consider taking over its insurance policies, providing it with a rates remission or reduction, or providing it with an annual operating grant of $1.83 to $2.5 million.

Until its 2023 audited accounts are released, the Deloittes report (released on Friday) could play a pivotal role in the councillors’ decision to provide a lifeline to the Arts Centre. However, the report comes with its shortcomings.

Deloittes has dismissed the Arts Centre’s insurance and rates proposals as being no better economically than the provision of council heritage grants. But it forcasted the Arts Centre will become insolvent without outside assistance.