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ITEM EX11

EXECUTIVE - 7 SEPTEMBER 2004

COGGES MANOR FARM MUSEUM

Report by Director for Learning & Culture

1. This report follows the report to the Executive on 16 June and the bilateral meeting between the County Council (OCC) and West Oxfordshire District Council (WODC) on 30 July. It describes the work that has continued over the Summer and options for the future operation of Cogges Manor Farm Museum.

Key Context

2. National: Cogges Manor Farm Museum site is a scheduled ancient monument, a site of national importance, protected from development or change by the highest level of planning legislation. Archaeological evidence at Cogges documents over 2000 years of human history; Cogges Castle was the manorial home of Wadard, a knight who fought alongside William the Conqueror at the Battle of Hastings (and is depicted in the Bayeux Tapestry). The museum is one of a small national network of ‘rural life’ museums. Cogges is a ‘national treasure’. It is owned by Oxfordshire County Council.
3. Regional: Cogges is the only museum of its type in the region; as one of a network of rural museums throughout the country and is recognised as the leading rural museum in central England. Cogges has great potential as an educational resource for schools; although the numbers of school children visiting Cogges has fallen in recent years. It is believed that with the appointment of an education officer (externally funded) as recommended below, numbers can be expected to rise. Cogges provides a very special educational experience for children from Oxfordshire and surrounding counties.
4. Local: Cogges is the major visitor attraction in Witney and is a high quality site to introduce the Oxfordshire Cotswolds, WODC’s brand for tourist promotion in the area. It is an important venue for a range of cultural activities for the district and local community.

Recent developments

5. Following the meeting of the Executive on 16 June officers from OCC and WODC have continued to meet to monitor the museum through the season and to plan for the future.
6. A strong team of staff has been recruited and all are working well together. By the end of the first quarter of 2004/05 Cogges had exceeded its target for visitor numbers; however income was slightly lower than expected (a shortfall of £1,500 on the target), reflecting a slight reduction in secondary spending in the Tea Room and shop. A good Summer season, through the school holidays, could make up this shortfall.
7. At the OCC/WODC "bilateral" meeting on 30 July the Leader of WODC indicated that it was unlikely that the district would be in a position to make a significant contribution, if any, to Cogges after the current financial year. It was agreed that WODC would write to OCC setting out the position in detail in time for consideration at this Executive meeting. It was also agreed that there should be further discussion between the two councils with a view to identifying options for increasing income or reducing costs without adding to the local authority contributions. The Leader acknowledged that WODC would have to allow for a one-off cost in 2005/6 to meet possible redundancy costs and dilapidations; and that this sum might be available as a contribution towards Cogges (an estimate of £60,000 has been included in the following financial plans, £50,000 for redundancies and £10,000 for dilapidations).

Options Identified

8. Following this meeting three options have been considered:

A. A stronger partnership between OCC and the Cogges Trust – to invest in and develop the museum.

B. A reduction in service with Cogges providing an education programme for Oxfordshire schools and limited public access.

C. Closing Cogges entirely and mothballing the site.

Option A: Investment and Development

9. This option Aims to maintain the current level of service at Cogges; and to work with the Cogges Trust on a major fund raising campaign in order to invest in improvements on the site (see Annex D) (Annexes A - D - download as .xls file), with the aim, over a period of time of improving the visitor experience and reducing the overall cost of operating the museum to a stable position. This option relies on launching the fund raising campaign as soon as possible; however it would not be sensible to do this until the other financial proposals outlined in the financial plan have been agreed. Any delay in the start of the fund raising campaign will have an impact on the timing of the financial plan.
10. Some partnership work with WODC would continue – particularly through the Tourism Strategy and arts development.
11. In order to clarify the role of Cogges and its ‘mission’, as recommended by the external consultant to the Best Value Review of the Heritage Service, the following statements are proposed:

• To preserve and interpret the historic site and its environment for the enjoyment of present and future generations
• To promote the legacy of Oxfordshire’s countryside and rural heritage
• To engage local communities in their heritage
• To attract visitors to benefit the local economy
• To provide a high quality and inclusive learning resource

12. This option maintains a small core staff at Cogges but reduces the service to simply interpreting the site and Oxfordshire’s rural history for booked educational groups and through the Summer holidays. Income would be significantly reduced and it would be very unlikely that a fund raising campaign would succeed under these circumstances. The mission would be revised as follows:

Mission:

Cogges Manor Farm Museum aims to provide an educational facility for schools and other groups, with wider public access during the Summer holidays. Cogges tells the story of the Oxfordshire countryside and rural life; and interprets the special history of the site.

13. In this option it is envisaged that no livestock would be kept at Cogges (to reduce costs); the café would be closed; there would no programme of events. Clearly this would have an impact on the attraction of the site and the quality of visitors’ experience. There could be significant difficulties in recruiting staff for such a short season.

Option C: Closure

14. OCC as the owner of this scheduled ancient monument has a responsibility to maintain it in reasonable order; similarly there is a responsibility to maintain the collections (also owned by OCC) which have been donated by the people of Oxfordshire over the last 40 years and which are held in trust.
15. It is proposed that a caretaker would be employed to maintain the grounds and to ensure that the premises are secure and kept in good order. The risk of vandalism, which has been a problem on the site, would be significantly increased.
16. During the 1980s and 1990s much of the conservation and repair work at Cogges was grant aided by English Heritage. It is a condition of these grants that the public should be allowed access to the interior of such buildings by appointment at all reasonable times. The caretaker could undertake this work as part of his/her duties. This condition continues to apply to future leaseholders or owners. English Heritage can also require the repayment of grants, if the recipient disposes of the property within 10 years of receiving the grant. In this case the most recent grant to Cogges was of £29,075 in March 1996 for the 17^th century painted room.

External Fund Raising

17. At a meeting on 23 June the Cogges Trust voted unanimously to engage Development Partners as external fund raisers for Cogges. The Trust wishes to commission Development Partners to raise £1 million within 2 years. It is intended that this money will fund the development/improvement programme (Annex D) (Annexes A - D - download as .xls file) at Cogges – which in turn will lead to an increase in the number of visitors to the site and an increase in income. Estimates have been used in Option A in the Financial Implications section below.
18. Subsequently, in the knowledge of the uncertainty of the current situation, the Cogges Trust has commissioned a Feasibility Study for the fund raising campaign (an essential preparation for the task). The Feasibility report will be available in October 2004.

The National Network of Rural Museums

19. There is growing recognition within MLA (the national Museums Libraries and Archives Council) that a national network of rural museums would be of mutual benefit. The network is to be led by the Museum of English Rural Life (Reading University). Cogges, as one of the principal rural museums in the country is included within the network. Although there is no immediate benefit from the network, it is anticipated that partnership projects and joint initiatives will benefit in due course from new funding opportunities.

Discussions with Private Sector and Consideration of Externalisation

20. Through WODC’s ‘Attractions Forum’ a number of discussions have been held with other providers to seek partnerships and cooperation. These discussions are continuing; to date there have been no major developments, although joint marketing schemes of mutual benefit are generally welcomed.

Charitable Status, Trusts and Community Interest Company

21. The Cogges Trust is a registered charity; it meets the conditions for charitable status as it supports Cogges as primarily an educational institution. The Cogges Trust has raised substantial sums of money to assist with the conservation of the historic buildings at Cogges, to support the interpretation of the site, and to support educational programmes and events. The idea of transferring the management of Cogges to a trust (and specifically to the Cogges Trust) was considered in detail in 1997/8 when there was major uncertainty about future funding for all the museums. At that time there was no interest from the Trustees and no support for the idea. More recently during the Best Value Review Locum Destination Consulting (an international external consultancy) provided a report on ‘trust status’ for museums. That report concludes:

‘a trust operation……… is likely to be inherently more fragile than a local authority operation…….

‘Issues of social inclusion, life-long learning or service integration inevitably tend to be of less concern in terms of day-to-day business management and operational priorities….. Critically it may also mean the inability of a museums service to meet its key internal collections care and management responsibilities with consequent damage to the primary heritage resource. Given that this has often been assembled through the generosity of the public, this is an issue that should be at the forefront of any debate about change of governance’.

22. The idea of transferring Cogges to a Community Interest Company (CIC) has been considered and advice received from the Solicitor to the Council. He explains that in order to become a CIC, a company has to satisfy a Community Interest Test confirming that it will pursue purposes beneficial to the community and will not serve an unduly restrictive group of beneficiaries. The aim over time is to establish a new brand for social enterprise sitting alongside and as an alternative to charities and industrial and provident societies. However in conclusion he writes that ‘you will find that if Cogges was converted into a CIC you would be faced with considerably more administrative work, more regulation and less tax advantages (than charitable trust status).’ As Cogges is eligible for charitable status, there is really no benefit to Cogges to pursue this alternative route.

Gift Aid and VAT

23. A number of independent museums have successfully introduced a system to allow a significant proportion of the income they receive from admissions to be classified as Gift Aid – a concession agreed by the Treasury. However this concession is currently under review and it is uncertain whether it will continue. An external consultant has advised on the possibility of introducing this at Cogges. In order to be eligible admissions income would have to be paid to the Trust, however his advice is that the current ‘objects’ of the Cogges Trust render it ineligible for this concession. If a Trust with the necessary ‘objects’ was created, and if appropriate powers and responsibilities were transferred to it, and if the Treasury’s concessions continue then a benefit of as much as £20,000 per year might be achieved. However there are setting up costs (including consultancy and legal advice) of c £3,000. With so many uncertainties, and until the Treasury’s position is clear, officers have not taken this further at this stage. However, clearly this is something that must be kept under review and a decision taken in due course.
24. Cogges Museum already benefits from the Treasury’s concession on VAT. No VAT is paid on admissions income.

Heritage Lottery Fund

25. As part of the external fund raising campaign the HLF will be consulted to see whether some elements of the development/improvement plan are eligible for that support. Increasingly the HLF is favouring smaller scale projects, so it may be that a number of separate applications will be made for specific projects within the plan.

Other Issues

26. Under options a and b it is likely that all or some staff will transfer from WODC to OCC under TUPE regulations (Transfer of Undertakings (Protection of Employment) Regulations 1981). These regulations require a minimum period of three months for negotiations. Personnel officers from WODC and OCC have begun the preparation of papers and details so that they can be ready at short notice to begin the process. Given that transfer to OCC of responsibility for Cogges is scheduled for 1 April 2005 it will be important that as much notice as possible is given about the outcome of the negotiations; and particularly that the transfer of staff arrangements, if agreed, take place seamlessly to minimise disruption Both to the service and to staff.
27. Easter 2005 falls in March (27 March), therefore if Cogges is to open as usual for the 2005 season the opening date will be 22 March (Tuesday before the Easter weekend). The Easter weekend is one of the busiest periods in the Cogges programme and it therefore plays a significant part in generating the annual income.

Financial implications

28. The figures used below are all best estimates at the time of writing. For the purpose of this report a provisional estimate of £60,000 has been used for WODC’s liabilities for redundancies (£50,000) and dilapidation costs (£10,000); the precise costs will be identified as soon as possible.
29. The figures for all three options are based on 2004/5 prices and assume that the existing allocation from the delegated Repair & Maintenance budget which is attributable to Cogges (currently £14,000 pa) will continue.

Option A

30. The following 5 year financial plan has been prepared by officers from OCC and WODC working in partnership. The plan is based on a one year only contribution from WODC for 2005/6 equal to the Council’s liabilities (redundancy costs and dilapidations) if the museum were to close; and a stable funding base from OCC. Income is estimated to rise following investment in the site – funded by external fund raising – to allow a development/improvement (see Annex D).
    
    

Option A : OCC & Cogges Trust Partnership
Financial Plan (04/05 Prices)	2004/05	2005/06		2006/07		2007/08	2008/09	2009/10
Total Expenditure (As detailed in Annex A) (Annexes A - D - download as .xls file)	69,000	336,200		326,200		326,200	326,200	326,200
Total Expenditure	69,000	336,200		326,200		326,200	326,200	326,200
Site Income		-110,000		-110,000		-120,000	-130,000	-140,000
Income from WODC (Redundancies/Dilapidations)		-60,000		0		0	0	0
Income from Cogges Trust : Education Officer		-30,000		-30,000		-30,000	-30,000	-30,000
Income from Cogges Trust : Contribution		0		-30,000		-20,000	-10,000	0
Total Income	0	-200,000		-170,000		-170,000	-170,000	-170,000
Net Expenditure to be met by OCC	69,000	136,200		156,200		156,200	156,200	156,200

31. On the assumption that admission prices remain static, an increase in visitors to Cogges of 3,578 (taking an average admission price across all price bands) would increase income by £10,000. Such an increase is perfectly manageable and achievable – given the proposed improvements in the service and marketing. The total increase in income over the 5 year period therefore assumes a rise in visitor figures from c.30,000 in 2004/5 to c.40,000 in 2009/10; whilst this is a challenging rise, it does only take the visitor numbers back to where they were in the mid 1990s. These figures do not include secondary spending in the Tea Room and shop – improvements here are likely to lead to increased income in these areas too. Income from school visits in 2003/4 was £15,830 – the appointment of an education officer (externally funded by the Trust) will enable a significant increase in educational use and increase in income from that source also.

Option B

32. This option reduces the service, as described above. A curator and caretaker would be retained on the permanent staff; other staff would be contracted in to meet demand for educational sessions, or on short contracts for the Summer holiday period. Estimated income has been significantly reduced.

Option B : Reduction in Service & Provision of Education Programme
Financial Plan (04/05 Prices)	2004/05	2005/06	2006/07		2007/08		2008/09		2009/10
Total Expenditure (As detailed in Annex B) (Annexes A - D - download as .xls file)	69,000	203,300	143,300		143,300		143,300		143,300
Total Expenditure	69,000	203,300	143,300		143,300		143,300		143,300
Site Income	0	-30,000	-30,000		-30,000		-30,000		-30,000
Income from WODC (Redundancies/Dilapidations)	0	-60,000	0		0		0		0
Total Income	0	-90,000	-30,000		-30,000		-30,000		-30,000
Net Expenditure to be met by OCC	69,000	113,300	113,300		113,300		113,300		113,300

Option C

33. Option C retains a caretaker only, maintains the site and provides access to the historic buildings by appointment as required by English Heritage. All other services cease.

Option C : Closure of Cogges
Financial Plan (04/05 Prices)	2004/05		2005/06		2006/07	2007/08		2008/09		2009/10
Total Expenditure (As detailed in Annex C) (Annexes A - D - download as .xls file)	69,000		103,900		43,900	43,900		43,900		43,900
Income from WODC (Redundancies/Dilapidations)	0		-60,000		0	0		0		0
Net Expenditure to be met by OCC	69,000		43,900		43,900	43,900		43,900		43,900

Staffing Implications

34. As proposed in the report to the Executive on 16 June, when the management of Cogges reverts to OCC on 1 April 2005, all the staff (in option A) or some staff (in option B) should transfer under TUPE regulations (Transfer of Undertakings (Protection of Employment) Regulations 1981). This ensures that their conditions of service are protected.
35. Under Options B and C it is assumed that most or all existing staff would be made redundant with WODC meeting the redundancy costs. Casual staff (in Option B) would be taken on to meet demand during the season.
36. The development/improvement programme (Annex D) (Annexes A - D - download as .xls file) includes a new post of Education Officer. This post would be funded by external fund raising.

Summary of Financial Implications

Summary of Financial Implications for OCC (2004/05 Prices)
Net Expenditure to be met by OCC :	2004/05		2005/06	2006/07		2007/08	2008/09		2009/10
Option A : OCC and Cogges Trust Partnership	69,000		136,200	156,200		156,200	156,200		156,200
Option B : Reduction in Service/Education Programme	69,000		113,300	113,300		113,300	113,300		113,300
Option C : Closing Cogges Entirely	69,000		43,900	43,900		43,900	43,900		43,900

RECOMMENDATIONS

37. The Executive is RECOMMENDED to:

1. note that the management of Cogges Manor Farm Museum will revert to the County Council on 1 April 2005;
2. adopt an option (A, B or C) as a preferred option for the future management of the Museum, subject to the identification and allocation of the financial resources necessary to fund that option.

KEITH BARTLEY
Director for Learning & Culture

Background Papers: Nil

Contact officer: Martyn Brown, County Museums and Heritage Officer. Tel: 01993 814114

August 2004

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