Fife Cultural Trust recorded a deficit of £776,000 before Covid-19 restrictions closed its venues.
The latest financial report for the trust, which runs libraries, theatres, museums and galleries across Fife, reveals it recorded the deficit to the end of March last year, in comparison to a deficit of £28,500 the year before.
Costs of running the charity and financial liabilities were said to have added to the trust’s financial challenges before Covid-19 saw it lose all sources of income as venues were forced to close.
OnFife chief executive Heather Stuart said the trust was reviewing its operations with the aim of sustaining services in the long term.
“Like everyone else in the sector we are reviewing all areas of the business to protect the long-term sustainability of the organisation,” she said.
“We are currently at the beginning of a programme of change and we look forward to being able to share more details as this programme progresses.”
Fife Council’s Community and Housing Services Sub-Committee will discuss the trust’s financial position on Thursday.
In a report to the committee, Paul Vaughan, head of communities and neighbourhoods, said despite the financial challenges facing the trust it has “continued to perform well”.
He said: “One of the key impacts for the trust was an overnight loss of all generated income.
“Already managing a budget shortfall, the trust took immediate measures to centralise
budgets and restrict all but the most essential spending. Nineteen team members in
the trading subsidiary and 64 casual staff were furloughed, with the trust topping up
the 80% of wages provided through the national Coronavirus Job Retention Scheme
so that staff received full pay.
“With Covid-19 continuing to dominate all operations, the ongoing growth and
development of OnFife is more essential than ever so the organisation can continue
to recover effectively.”
The report said OnFife was continuing to engage with customers through digital means in an unprecedented environment.
During the pandemic, OnFife staff have been reaching out to customers at risk of becoming socially isolated through the trust’s OnFife Cares initiative, offering support and helping them access digital books.
Meanwhile, a £3 million revamp of the Adam Smith Theatre is expected to start in autumn and be complete by November 2022.
“Covid-19 brought the proposals to a temporary halt, although work has now started on the refurbishment of the auditorium and funding has been secured for phase two of the project which will see the creation of a new design suite to support and develop creatives in Fife and the refurbishment of the Beveridge Suite to support greater community use,” said the report.
