SportEngland_AR_17_18

WORKING EFFICIENTLY
There are a number of key targets used to measure
our financial efficiency.
Exchequer: We are set an absolute administration
cost target as part of our spending review settlement
for the period 2016-2020, which has been achieved,
as illustrated in fig 1, below.
In addition we are required to operate within the
overall budget limits set by DCMS. Resource and
capital GIA were underspent by £0.9 million for the year
(2017: £0.4 million), which is 0.9% (2017: 0.4%) of total
GIA funding of £101.3 million (2017: £105.6 million).
Lottery: In 2010 the Lottery distributors agreed to
work towards a benchmark of 5% for grant processing
costs and 8% for gross costs. In calculating the
percentages the Lottery distributors agreed a common
definition which we have applied to this calculation.
Due to the cross-governmental nature of the Active
Lives Survey, and with the agreement of DCMS, the
cost of the Active Lives Survey has been excluded
from this calculation, as have the costs of operating the
Be Inspired database, which is the consumer database
transferred from the London Organising Committee
of the Olympic and Paralympic Games (LOCOG).
The achievement against targets for 2017-18 and
2016-17 are similar, due to income and costs being
broadly the same, at 5.7% and 8.5% (2017: 8.6% and
5.3%). The reduction in Lottery income from 2015-16
is the main contributor to exceeding the 5 and 8%
targets, as actual costs were reduced from 2015-16
to 2016-17 by 5%. A new approach to the 8% target
has been agreed by all distributors with Government
which came into effect on 1 April 2018. This uses a
three-year rolling average Lottery income as its base
to reflect fluctuations in Lottery income over a longer
period, and excludes irrecoverable VAT. Using the new
methodology, the outturn for 2017-18 would have been
within the target at 7.4%.
CASH MANAGEMENT
Management of our Exchequer cash resources is in
line with the requirement to minimise our cash balances
which is contained within Managing Public Money.
Our Exchequer cash balance at 31 March 2018 was
£14.1 million (2017: £18.1 million).
The lower cash balance at 31 March is due to
improved cash management processes, with
£19.5 million of cash draw down deferred to
2018-19 following expected delays mainly with the
Parklife and Community Asset Fund programmes.
The management of our Lottery cash resources
is by a rolling five year investment and cash flow plan
which is regularly reviewed by the Executive and the
Board. The investment and cash plan ensures that
the right balance is maintained between having award
programmes in place to achieve our strategic priorities
while taking into account the uncertainty of Lottery
income and ensuring that forecast cash balances are
always greater than £50 million.
Our Lottery cash balance at 31 March 2018 was
£125.9 million (2017: £97.3 million).
The movement in the NLDF balance is detailed in note
2 of the Lottery Accounts.
fig. 1
6,600
6,400
ADMINISTRATION COST TARGETS
6,445
Administration target
Administration outturn
£000’S
6,200
6,000
6,065
5,800
5,600
5,877
5,789
5,400
2018 Financial year
2017