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SUMMARY OF FINANCIAL MODEL
	Based on the Management Fee Reducing to finance £29.4m of capital costs


			2006/07	2008/09	2009/10	2010/11	2011/12	2012/13
			Budget	Budget	Budget	Budget	Budget	Budget
				£	£	£	£	£

EMPLOYEE COSTS			7535112	7550265	7758143	7963942	8173968	8302579

PREMISES RELATED EXPENDITURE			1499301	1295381	1309447	1277467	1334603	1392753

TRANSPORT RELATED EXPENDITURE			37144	66553	54467	38270	31173	23931

SUPPLIES AND SERVICES			914856	828055	884790	911668	936394	961523

THIRD PARTY PAYMENTS (Finance / Legal / HR)			100000	101000	102010	103030	104060	105101

DEVELOPMENT			0	0	0	0	0	0
	Total Expenditure			9841254	10108857	10294377	10580198	10785887


INCOME
		Base Management Fee	-6982408	-6982408	-7059079	-6746664	-5632400	-5368981
		inflationery Adjustments		-76671	-97197	-87653	-66576	-60433
				-7059079	-7156276	-6834317	-5698976	-5429414
		less required to fund Prud. Borrowing		0	409612	1201917	329995	0
		Management Fee Payable		-7059079	-6746664	-5632400	-5368981	-5429414


	Other Income		-3920566	-3270558	-3708784	-4452191	-4799390	-5157416
	Total Income		-10902974	-10329637	-10455448	-10084591	-10168371	-10586830

	Estimated saving on VAT (note 1)			-200000	-200000	-200000	-200000	-200000


NET EXPENDITURE			-816561	-688383	-546591	9786	211827	-943

*BALANCES*				*-688383*	*-1234974*	*-1225188*	*-1013361*	*-1014304*

	*Inflationary Assumptions*
	Pay Inflation			0.025	0.025	0.025	0.025	0.025
	Non Pay inflation			0.01	0.01	0.01	0.01	0.01
	Increase in income targets			0.05	0.05	0.05	0.05	0.05
	Efficiency savings			0	0	0	0	0



	Notes


	Note 1
	At this stage, the saving on VAT has been estimated at £200,000 per annum.
	However, a separate exercise will need to be undertaken in order to ascertain the likely
	VAT position for each of the five financial years in question.

	Note 2
	The Prudential Borrowing figure has been reduced by £701,820 (i.e. from £2.643m to £1.941) which equates to approximately
	£10.6m of capital construction costs. This would have to be financed via another source (i.e. outwith the Trust)

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FIFE SPORTS LEISURE TRUST - SUMMARY FINANCIAL PLAN 2008-2013



			2006/07	2008/09	2009/10	2010/11	2011/12	2012/13
			Budget	Budget	Budget	Budget	Budget	Budget
				£	£	£	£	£

EMPLOYEE COSTS			7535112	7550265	7758143	7963942	8173968	8302579

PREMISES RELATED EXPENDITURE			1499301	1295381	1309447	1277467	1334603	1392753

TRANSPORT RELATED EXPENDITURE			37144	66553	54467	38270	31173	23931

SUPPLIES AND SERVICES			914856	828055	884790	911668	936394	961523

THIRD PARTY PAYMENTS (Finance / Legal / HR)			100000	101000	102010	103030	104060	105101

DEVELOPMENT			0	0	0	0	0	0
	Total Expenditure			9841254	10108857	10294377	10580198	10785887


INCOME
		Base Management Fee (note 3)	-6982408	-7059079	-7156276	-6834317	-5698976	-5429414
		less required to fund Prud. Borrowing (note 1)		0	409612	1201917	329995	0
		Management Fee Payable		-7059079	-6746664	-5632400	-5368981	-5429414


	Other Income (note 4)		-3920566	-3270558	-3708784	-4452191	-4799390	-5157416
	Total Income		-10902974	-10329637	-10455448	-10084591	-10168371	-10586830

	Estimated saving on VAT (note 2)			-200000	-200000	-200000	-200000	-200000


NET EXPENDITURE			-816561	-688383	-546591	9786	211827	-943

*BALANCES*				*-688383*	*-1234974*	*-1225188*	*-1013361*	*-1014304*


	Notes

	1	The saving will finance prudential borrowing of £29.4m.

	2	At this stage, the saving on VAT has been estimated at £200,000 per annum. While a prudent assumption, a more detailed exercise will need to be undertaken in order to ascertain the likely VAT position for each of the five financial years in question.

	3	The Base Management Fee takes account of operating efficiences, reductions in costs including rates, inflationary increases and requirements to meet prudential borrowing. Detail of the assumptions are outlined in Appendix 2 section 1.5.

	4	Other Income takes account of earned income adjusted to reflect the development phasing and anticipated closure periods.

	5	Inflationary assumptions are included annually at 2.5% pay inflation, 1% non pay inflation and 5% income (comprising Council current policy of RPI plus 1% on charges and anticipated enhanced participation and new activity levels).

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Calculation of Management Fee

	2008/2009	2009/2010	2010/2011	2011/2012	2011/2012

	£	£	£	£	£
Base	6,982,408	** 7,059,079	** 6,746,663	** 5,632,400	** 5,368,981
add back inflation uplift on expenditure	213,891	211,666	217,461	222,403	228,411
	** 7,196,299	** 7,270,745	** 6,964,124	** 5,854,803	** 5,597,392
less inflation uplift on income	196,028	163,528	185,439	222,610	239,969
	** 7,000,271	** 7,107,217	** 6,778,685	** 5,632,193	** 5,357,423
add back 1.5% income adjustment	58,808	49,058	55,632	66,783	71,991
	** 7,059,079	** 7,156,275	** 6,834,317	** 5,698,976	** 5,429,414
less required to fund prudential borrowing	0	409,612	1,201,917	329,995	0
Fee Payable	** 7,059,079	** 6,746,663	** 5,632,400	** 5,368,981	** 5,429,414

Spreadsheet's Author: User
Last Updated with Excel 97

** This cell's data may not be accurate.

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