Welcome to Yorkshire misses deadline to file accounts as £1.4m bailout decisions awaited
Welcome to Yorkshire had been due to file its accounts for the 18 months between March 2018 and September 2019 by last Wednesday, September 30, but the deadline has not been met.
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Hide AdChief executive James Mason said the decision not to file the company’s accounts at this stage had been made as it continues to await decisions from local councils on whether they will support the coronavirus-related bailout plan, affecting whether the organisation can be classed as a going concern.
“The reduction in income from postponed or cancelled events along with a three month payment freeze of business member subscriptions - which was common across many other sectors of the economy - combined with the uncertainty of local authority funding all meant that filing audited financial statements was very difficult,” he said.
“It has been widely reported that we have reached out to local authorities for funding to be able to continue operating. The board and leadership team have been focused on delivery of this funding and securing the future of the organisation which is still ongoing. This process included the presentation of a business plan with draft figures for the years up until March 31, 2019 and March 31, 2020.”
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Hide AdAs a private company, Welcome to Yorkshire is now liable for a fine of between £150 up to £1,500 depending on how late its filing to Companies House ends up being.
Mr Mason said the intention is for the accounts to be filed by the end of 2020.
The organisation had previously been granted a six-month extension to an original deadline to publish its 2018/19 accounts by December 31 last year as it struggled to recover from the fallout to an expenses spending scandal that occurred under former chief executive Sir Gary Verity.
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Hide AdMr Mason confirmed today that the original extension was requested as Welcome to Yorkshire was unable to satisfy auditors it was a going concern at that time.
Since that extension, the company has been further hit by the impact of coronavirus and in June, chairman Peter Box wrote to local councils to ask them to participate in a bailout of the company after it missed out on £1m in expected business rates funding and £400,000 from membership fees that were suspended for three months because of the pandemic.
Mr Box, a former leader of Wakefield Council, said at the time that without the support of all local councils, the WtY board would “be faced with a decision of not if but when to discuss the options of closing the organisation”.
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Hide AdThe company typically receives around half its income from the public sector, with the rest largely coming through private membership fees. In the past year, it has reduced staffing levels by more than half as it attempts to balance the books. In April, it was given an extra year to repay a £500,000 loan it had taken from North Yorkshire County Council that was given in September 2019 to prevent the company running out of cash.
While councils in North and South Yorkshire have agreed to put almost £600,000 towards the bailout and Kirklees Council has approved £79,000 towards it, some local authorities have refused to participate with others yet to make decisions.
Wakefield Council refused to pay the £78,000 it had been asked for, while East Riding, Ryedale and Hambleton Councils have also declined to pay in extra cash.
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Hide AdRyedale leader Keane Duncan said last month he believed Welcome to Yorkshire “should close its doors for good”.
“To hand over £1.4m of taxpayer cash to this private organisation would be a scandal when there are so many questions about accountability, transparency and democratic oversight,” he said. “We’ve seen no accounts and no business plans, we’ve not even had a courtesy update since their demand for cash landed with councils three months ago.”
Mr Mason, who took over as chief executive in January, said he believes Welcome to Yorkshire can still have a viable future and that the organisation has changed considerably in recent months.
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Hide Ad“We are grateful for the support of those local authorities who value the role that the new WtY plays and can separate the legacy issues from the current leadership and direction of the business," he said.
“We are also very grateful to our business members who continue to support WtY and we have seen a very positive recommencement of subscriptions in recent weeks which is testimony to how we have operated and demonstrated value to the Yorkshire tourism industry in the last six months.
“Once the funding process is complete WtY expects to be able to file both the September 2019 and March 2020 financial statements by the end of the year.”
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Thank you
James Mitchinson
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