2006 BATTLE OF FLOWERS

UNDER STRICTEST EMBARGO UNTIL 0001 ON TUESDAY 10 OCTOBER 2006

BATTLE OF FLOWERS – EXTERNAL REPORT FINDINGS

Comptroller & Auditor General’s Report calls for tightening up of corporate governance and financial controls

of Battle of Flowers

The Comptroller & Auditor General(C&AG), Chris Swinson, has issued a report concerning the Battle of Flowers (‘Battle’). It covers an investigation of the circumstances surrounding the 2006 Battle of Flowers itself, as well as governance arrangements within the Jersey Battle of Flowers Association (‘the Association’).

Acknowledging the tremendous voluntary contribution and the ‘splendid spectacle’ of the floats, Mr Swinson highlights the importance of Battle to the Island community and praises those members of the Battle Council and volunteers who plan and manage the parade itself.

He says that in many respects the 2006 Battle was a success, with reports of better than before carnival atmosphere and remarkable floats.  The event did, however, gave rise to public concern on two accounts; a) the invitation of a celebrity to the event, and b) the sale of corporate hospitality tickets, which resulted in financial loss and led to questions about the management of Battle.  It is on this basis that the investigation was commissioned.

The Report, which is being circulated to all Members of the Association, sets out a chronology of the events within the Association leading to this year’s Battle [1] , and presents an analysis of the factors which led to disappointment, embarrassment and failure of some aspects of Battle [2] . It examines the strengths and weaknesses of corporate practices [3] and internal financial controls [4] within the Association, and looks at certain aspects of the relationship between the Association and the Economic Development Department (‘the Department’) [5] .

The Key Findings are as follows:

1.      In the eyes of some members of Council, the initiative to improve the marketing of the Battle did not achieve the desired results

2.      Notwithstanding the misgivings of some members of Council, the choice of a celebrity to attend the parade was made - and has led to criticism and complaint

3.      The attempt to make corporate hospitality facilities available led to embarrassment for the Council and a material loss for the Association rather than the surplus that was anticipated; and

4.      The Association may have suffered a material loss partly through the failure of corporate hospitality income to materialise and partly through carelessly incurred liabilities (irrespective of the increased grant made available by the Economic Development Department).

Mr Swinson attributes these failings to a number of factors – namely:

1.      Inappropriate reliance on people without the necessary skills and experience to execute some of the tasks apportioned to them.

2.      Continuing to rely on them even when it became clear that they were getting into difficulty.

3.       Weakness in corporate governance practices and internal financial controls which did not address this, and which were exacerbated by personal animosity between some members of the Council.

4.      Confusion surrounding the purpose of the grant of further funds from Economic Development, which was neither defined nor recorded, so contributing to Council’s understanding that certain initiatives (i.e. celebrity, marketing and carnival improvements) were necessary for the grant of the additional £50,000 and £45,000 being made.

In general terms, Mr Swinson feels that a number of changes to the structure and management of the Association would limit the risk of a recurrence of this year’s problems and of further detraction from the achievements of the many volunteers who contribute to the event.  It is in this regard that he makes a number of Recommendations, as well as providing advice and guidance to the Association on two similar models [6] to which the Association can look in terms of improving its internal arrangements.

The recommendations are:

·         To transfer the business of organising and managing the parade to The Jersey Battle of Flowers Limited, the company owned by the Association, with a small, skilled board who have the necessary skills to manage the parade’s business affairs.

·         That the Chairman should oversee this management structure as well as being responsible for ensuring that the key offices of the Association are filled and that necessary skills are represented on the Council.

·         Wherever possible, the Battle of Flowers organisation (whether in the form of the Association or of the limited company) should use sub-contracted services.

·         Further grants from the States should only be forthcoming once the Association has implemented the reforms intended to achieve the recommendations set out in the report; and that the normal arrangements concerning offering and making grants should apply to Ministers as well as departmental officials, with formal recording of all decisions and advice.

Mr Swinson added:

“The remit for the Battle Report was very precise. Due to the complexity of the findings, it is essential that the Report is studied as a whole by the interested parties, to avoid any potential confusion in relation to particular activities or personal actions.

“The Report has addressed the lack of corporate governance arrangements and of financial controls, and the analysis has shown that too much responsibility and autonomy rested in the hands of a very few members of the Council.

“The unfortunate circumstances of the 2006 event served as a catalyst for the investigation, but this must be seen as a springboard for change.

“The Battle of Flowers is a national institution and the epitome of community spirit in the Island, as well as a draw for visitors.  As such, it is a precious commodity in all its aspects.

“It is for the Economic Development Minister and Department, Battle Committee and Council, and Members of the Association to address the current issues, with the facts they now have before them.  I very much hope that the findings assist those involved to build on past experiences; decide a clear strategy going forward - taking into account the recommendations within the Report - and look forward to a positive future for the Battle of Flowers”.

ENDS

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Notes to Editors

We would be grateful if you would please note that, due to the complexity of the Report, and the need for the recipients to study it in detail, Mr Swinson will not be making any additional comments at this time, other than what he has set out in the Report and this press statement.  He will be providing another comment to the media on the progress going forward at a date in the near future.

Many thanks

For further information, document copes etc., please contact Rozena Newell on

T: 07797 733553.