Highland Council and Eden Court must draw up a formal funding agreement in the next six months, according to auditors.
A report to today’s audit and scrutiny committee recommends that council tighten up its contracts with Eden Court, High Life Highland and Hitrans.
In particular, Eden Court has no business plan or service agreement in place with the council.
Councillors agreed to reduce funding to Eden Court in 2019 but this was not reflected in a written contract. Instead, the current £300,000 funding deal is based solely on “an exchange of emails”.
And while High Life Highland has reported regularly to the council’s education committee, Eden Court has not provided any performance update in the review period.
Auditors identified three ‘medium’ risks in the council’s dealings with arms-length external organisations (ALEO).
Councillors today accepted the recommendations, which include a central register of ALEOs including funding.
Rebecca Holt takes the reigns as new chief executive of Eden Court next month.
Councillors today asked Ms Holt to deliver a business plan within six months. The council and Eden Court will also draw up a formal funding agreement.
Eden Court ‘is not slack’
The auditor’s findings drew criticism from some in the chamber.
Councillor Ian Cockburn said Wester Ross and the more remote parts of the Highlands don’t see the benefits of the Inverness-based performance venue.
“The council can’t keep bleeding money into Eden Court,” said Mr Cockburn. “Eden Court has to start paying its way as far as this council is concerned.”
However, the council’s finance bosses highlighted that beyond the revenue support, the council’s capital programme includes a larger scale redevelopment opportunity, which could bring in more revenue.
Councillor Gordon Adam – a board member of Eden Court – said its ambitious capital plans would make it even less dependent on public funding.
Eden Court also now has an in-house production company for the first time in 40 years.
Mr Adam says this will extend the benefits beyond Inverness.
“Eden Court has not been slack in addressing its responsibilities,” said Mr Adam.
“Frankly, as a board member for the past five years I’ve been extremely impressed with the way Eden Court is run and I think is relationship with the council is a very successful one.”