Unaudited Trustees’ Annual Report
North Ayrshire Council · 26 June 2024
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NORTH AYRSHIRE COUNCIL 26 June 2024 North Ayrshire Council Title: North Ayrshire Charitable Trusts: Unaudited Trustees’ Annual Report 2023/24 Purpose: To present the unaudited Trustees’ Annual Report for the year to 31 March 2024 to the Council, as trustees, for approval. Recommendation: That Council, as trustees of the North Ayrshire Council Charitable Trusts, approves the annual report for 2023/24, subject to audit. 1. Executive Summary 1.1 The Council administers a number of charitable trusts including a number of Town Trusts, which amalgamate various bequests made in relation to specific localities; the North Ayrshire Charitable Trust, which collates bequests which are not specific to any particular location within North Ayrshire; and three specific trusts, including the Anderson Park Trust, the Douglas Sellers Trust and the Margaret Archibald Trust. All of these trusts are charities registered with the Office of the Scottish Charity Regulator (OSCR). 1.2 The financial statements within this report have been prepared in accordance with the Charities Accounts (Scotland) Regulations 2006. The statements are subject to audit by the appointed auditor, Audit Scotland, and a report on the outcome of the audit will be presented to the Audit and Scrutiny Committee on completion. 2. Background 2.1 All charitable trusts registered with the Office of the Scottish Charity Regulator at 31 March 2024 are required to prepare Trustees’ Reports for 2023/24, which must be independently audited. The report attached at Appendix 1 presents the Trustees’ Annual Report and Financial Statements for all of North Ayrshire Council’s charitable trusts and Audit Scotland have been appointed as external auditors for 2023/24. 2.2 The Council, as trustees of the North Ayrshire Council charitable trusts, has delegated authority for the approval of individual disbursements from all Trusts to the relevant Locality Partnerships.
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2.3 During 2023/24 officers have continued to seek options for the appropriate use of these funds, including any options which could deplete the available capital and result in the winding up of the trust, subject to approval by OSCR. 2.4 During 2023/24 grant disbursements were approved in relation to Robert Fleck Award, held within North Ayrshire Council Charitable Trust, Margaret Archibald Bequest, Kilwinning Town Trust and Largs Town Trust. 2.5 At 31 March 2024, five Trusts and two bequests registered to the North Ayrshire Charitable Trust have been identified as dormant, having made no disbursements for at least one year. The period of dormancy for each trust is detailed in the attached Trustees’ Annual Report. The dormant trusts are; • Anderson Park Trust; • Douglas Sellers Trust; • North Ayrshire Council (Kilbirnie & Glengarnock) Charitable Trust; • North Ayrshire Council (Dalry) Charitable Trust; • Largs War Memorial Bequest (included within the North Ayrshire Charitable Trust); • North Ayrshire Museum Bequest (included within the North Ayrshire Charitable Trust); • Spiers Trust (included within the North Ayrshire Charitable Trust). 2.6 Officers from the Connected Communities service have been working closely with colleagues from across the Council to promote the various funding sources, trusts and bequests available and ensure that as many of our staff teams, partners and communities are aware of the available financial supports available to groups and individuals. 3. Proposals 3.1 It is proposed that Council, as trustees of the North Ayrshire Council Charitable Trusts, approves the annual report for 2023/24, subject to audit. 4. Implications/Socio-economic Duty Financial 4.1 The cost of the audit for 2023/24 was £1,100, which has been borne by the charitable trusts. Human Resources 4.2 None.
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Legal 4.3 Trustees have an obligation to act in the interests of the individual Trusts and comply with the requirements of the Charities and Trustee Investment (Scotland) Act 2005 to keep and report proper financial records. Equality/Socio-economic 4.4 Some of the Trusts are specifically intended to benefit those in old age or with ill- health or disabilities. Climate Change and Carbon 4.5 None. Key Priorities 4.6 The administration of the Trusts supports North Ayrshire Council’s priorities to promote active participation in our communities, improve community health and wellbeing and promote sustainable improvements in the lives of our residents, as outlined in our Council Plan 2023-28. Community Wealth Building 4.7 None. 5. Consultation 5.1 Legal Services were consulted during the preparation of the Trustees’ Annual Report 2023/24. Mark Boyd Head of Service (Finance) For further information please contact David Forbes, Senior Manager (Strategic Business Partner), on 01294 324551 or DavidForbes@north-ayrshire.gov.uk. Background Papers None
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NORTH AYRSHIRE COUNCIL TRUST FUNDS TRUSTEES’ ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 March 2024
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Table of Contents 1 Section Page Number Trustee Annual Report 2 Independent Auditor’s Report 7 Statement of Receipts and Payments for year ended 31 March 2024 10 Statement of Balances as at 31 March 2024 11 Notes to the Financial Statements 12
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Trustees’ Annual Report 2 1. INTRODUCTION The Trustees present the Annual Report together with the Financial Statements and the Auditor’s Report for the year ended 31 March 2024. ADMINISTRATION INFORMATION The following Charities’ Financial Statements are included in this report: Charity Number Charity Name SC042136 Anderson Park Trust SC042101 Douglas Sellers Trust SC042117 Margaret Archibald Bequest SC025083 North Ayrshire Council Charitable Trust SC043644 North Ayrshire Council (Dalry) Charitable Trust SC043600 North Ayrshire Council (Kilbirnie & Glengarnock) Charitable Trust SC043374 North Ayrshire Council (Kilwinning) Charitable Trust SC043494 North Ayrshire Council (Largs) Charitable Trust Contact Address North Ayrshire Council Finance Cunninghame House Irvine KA12 8EE Auditor Audit Scotland 4th Floor, South Suite The Athenaeum Building 8 Nelson Mandela Place Glasgow G2 1BT Current Trustees John Bell, Timothy Billings, Marie Burns, Eleanor Collier, Joe Cullinane, Scott Davidson, Anthea Dickson, Stewart Ferguson, Todd Ferguson, Robert Foster, Scott Gallacher, Anthony Gurney, Alan Hill, Cameron Inglis, Margaret Johnson, Amanda Kerr, Christina Larsen, Tom Marshall, Shaun Macaulay, Jean McClung, Nairn McDonald, Matthew McLean, Louise McPhater, Davina McTiernan, Jim Montgomerie, Ian Murdoch, Donald Reid, Donald L Reid, Chloe Robertson, Ronnie Stalker, Angela Stephen, and John Sweeney.
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Trustees’ Annual Report 3 2. STRUCTURE AND GOVERNANCE The Charitable Trusts are registered with the Office of the Scottish Charity Regulator (OSCR). The governing documents are: Charity Number Charity Name Governing Document Dated SC042136 Anderson Park Trust Trust Disposition and Settlement 8 July 1960 SC042101 Douglas Sellers Trust Trust Disposition and Settlement 21 January 1955 SC042117 Margaret Archibald Bequest Trust Deed 22 July 1992 SC025083 North Ayrshire Council Charitable Trust No overall governing documents. N/A SC025083 North Ayrshire Council Charitable Trust Spier’s Trust: Trust Scheme 1978 SC025083 North Ayrshire Council Charitable Trust North Ayrshire Museum: Scheme of Administration 1958 SC025083 North Ayrshire Council Charitable Trust North Ayrshire Museum: Minute of Agreement 1974 SC043644 North Ayrshire Council (Dalry) Charitable Trust Trust Deed 26 November 2012 SC043600 North Ayrshire Council (Kilbirnie & Glengarnock) Charitable Trust Trust Deed 23 October 2012 SC043374 North Ayrshire Council (Kilwinning) Charitable Trust Trust Deed 20 July 2012 SC043494 North Ayrshire Council (Largs) Charitable Trust Trust Deed 7 September 2012 The Trustees of the Charitable Trusts are the elected members of North Ayrshire Council and are appointed through their election to the Council. The Head of Finance is the designated officer within North Ayrshire Council with responsibility for the proper administration of the Charitable Trusts’ financial affairs. The Head of Finance is responsible for keeping proper accounting records that are up to date and which ensure that financial statements comply with the Charities Accounts (Scotland) Regulations 2006. The Trustees are satisfied that proper accounting systems have been maintained. The Head of Finance has considered and taken steps to address any risks to which the Charity may be exposed, in particular those related to its operation and finances. The Trustees are satisfied that adequate systems are in place to mitigate exposure to such risks.
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Trustees’ Annual Report 4 3. MANAGEMENT OF FUNDS AND INVESTMENT POLICY Decisions regarding the management of the Trusts have been delegated by the Council to the relevant Locality Partnerships. The Trustees rely on the expertise of North Ayrshire Council to manage the investments to ensure the maximum return and the least risk to the Charities. In this way, the income stream for the future benefit of the Charities is protected. The funds of the Charities are deposited with North Ayrshire Council (see note 7) and invested in stocks and shares in a variety of companies (see note 8). 4. OBJECTIVES AND ACTIVITIES Charity Number Charity Name Objectives SC042136 Anderson Park Trust Provision of recreational facilities or the organisation of recreational activities in the Burgh of Largs. SC042101 Douglas Sellers Trust Maintenance, improvement and advancement of recreational facilities within the Burgh of Irvine; Maintenance, improvement and floral decoration of open spaces within the Burgh of Irvine. SC042117 Margaret Archibald Bequest Relief of those in need who are aged 65 and over and who reside in the Parish of Dalry. SC025083 North Ayrshire Council Charitable Trust Encouragement and promotion of education among students, including bursaries and prizes awarded; Provision of recreational facilities or organisation of recreational activities; Upkeep of war memorials. SC043644 North Ayrshire Council (Dalry) Charitable Trust Prevention or relief of poverty; Provision of recreational facilities or the organisation of recreational activities; Relief of those in need by reason of age, ill health, disability, financial hardship or other disadvantage. SC043600 North Ayrshire Council (Kilbirnie & Glengarnock) Charitable Trust) Prevention or relief of poverty; Provision of recreational facilities or the organisation of recreational activities; Relief of those in need by reason of age, ill health, disability, financial hardship or other disadvantage. SC043374 North Ayrshire Council (Kilwinning) Charitable Trust Prevention or relief of poverty; Provision of recreational facilities or the organisation of recreational activities; Relief of those in need by reason of age, ill health, disability, financial hardship or other disadvantage.
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Trustees’ Annual Report 5 Charity Number Charity Name Objectives SC043494 North Ayrshire Council (Largs) Charitable Trust Prevention or relief of poverty; Provision of recreational facilities or the organisation of recreational activities; Relief of those in need by reason of age, ill health, disability, financial hardship or other disadvantage. Income received is expended on awards and, where necessary, supplemented by revenue reserves. 5. PERFORMANCE Income to the Charities comes from property rents, share dividends and investment returns. In the year to 31 March 2024, 6 awards of grant totalling £9,209 were disbursed (2022/23 6 awards totalling £6,641). In the year to 31 March 2024, the total income across the Trusts was £23,998 (2022/23 £19,029). 6. FINANCIAL REVIEW Overview In the year to 31 March 2024, the Charitable Trusts made a surplus of £12,616 (2022/23 Surplus of £10,284). The Trusts held cash and bank balances at 31 March 2024 of £203,989 (2022/23 £191,371). The increase in balances relates to income from property rents, share dividends and investment returns, partly offset by the utilisation of funds through the disbursement of grants noted above. In addition, the Trusts held investments in the form of stocks and shares in a variety of companies with a market value of £329,424 at 31 March 2024 (2022/23 £325,753), (see note 8). Future Plans The Charitable Trusts will continue to promote their activities and consider applications submitted by individuals and groups who meet the criteria. North Ayrshire Council is working within our communities to raise awareness of the financial support available from the Charitable Trusts and encourage appropriate applications from community groups and individuals. Where any Trusts have been identified as low value or dormant, North Ayrshire Council will continue to identify options for utilising Trust balances, and these will be presented to Trustees when available. The undernoted Trusts have been identified as dormant having made no disbursements for at least one year:
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Trustees’ Annual Report 6 Charity Number Charity Name Period Dormant SC042136 Anderson Park Trust Over 6 years SC025083 North Ayrshire Council Charitable Trust bequests: Largs War Memorial North Ayrshire Museum Spiers Trust Over 6 years Over 6 years Over 4 years SC042101 Douglas Sellers Trust Over 5 years SC043600 North Ayrshire Council (Kilbirnie & Glengarnock) Charitable Trust Over 5 years SC043644 North Ayrshire Council (Dalry) Charitable Trust Over 4 years Reserves Policy Reserves are held by North Ayrshire Council on behalf of the Trust and revenue income generated from the capital which has not been disbursed at 31 March each year is invested in North Ayrshire Council’s Loans Fund. 7. DECLARATION The unaudited accounts were issued on 26 June 2024 by: Mark Boyd Marie Burns Mark Boyd Councillor Marie Burns Head of Finance Leader North Ayrshire Council North Ayrshire Council
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Independent Auditor’s Report 7 Independent auditor’s report to the Trustees of North Ayrshire Council Charitable Trust Funds and the Accounts Commission
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Independent Auditor’s Report 9 This page is intentionally blank
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Statement of Receipts and Payments for year ended 31 March 2024 10 The Statement of Receipts and Payments, as required by the Charities Accounts (Scotland) Regulations 2006, provides an analysis of the incoming and outgoing cash and bank transactions for the year. The funds are classed as ‘Restricted’ because they have specific objectives, as set out in Section 4 of the Trustees’ Annual Report. 2023/24 2022/23 Charity Description Receipts Investments Receipts Property Rents Total Receipts Payments Charitable Activities Payments Governance Costs Total Payments Surplus / (Deficit) n/a n/a £ £ £ £ £ £ £ SC042136 Anderson Park Trust 1 0 1 0 0 0 1 SC042101 Douglas Sellers Trust 15 0 15 0 159 159 (144) SC042117 Margaret Archibald Bequest 11,606 0 11,606 6,675 459 7,134 4,472 SC025083 North Ayrshire Council Trust 7,560 2,660 10,220 250 707 957 9,263 SC043644 Dalry Trust 91 0 91 0 167 167 (76) SC043600 Kilbirnie & Glengarnock Trust 144 0 144 0 172 172 (28) SC043374 Kilwinning Trust 1,768 0 1,768 1,284 340 1,624 144 SC043494 Largs Trust 155 0 155 1,000 169 1,169 (1,014) Total n/a 21,338 2,660 23,998 9,209 2,173 11,382 12,616 Charity Description Receipts Investments Receipts Property Rents Total Receipts Payments Charitable Activities Payments Governance Costs Total Payments Surplus / (Deficit) n/a n/a £ £ £ £ £ £ £ SC042136 Anderson Park Trust 2 0 2 0 139 139 (137) SC042101 Douglas Sellers Trust 7 0 7 0 140 140 (133) SC042117 Margaret Archibald Bequest 10,591 0 10,591 5,100 420 5,520 5,071 SC025083 North Ayrshire Council Trust 5,056 2,660 7,716 1,541 630 2,171 5,545 SC043644 Dalry Trust 32 0 32 0 147 147 (115) SC043600 Kilbirnie & Glengarnock Trust 49 0 49 0 153 153 (104) SC043374 Kilwinning Trust 587 0 587 0 321 321 266 SC043494 Largs Trust 45 0 45 0 154 154 (109) Total n/a 16,369 2,660 19,029 6,641 2,104 8,745 10,284
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Statement of Balances as at 31 March 2024 11 The Statement of Balances, as required by the Charities Accounts (Scotland) Regulations 2006, reconciles the cash and bank balances at the start and end of the financial year, with any surpluses or deficits shown in the Statement of Receipts and Payments. 2023/24 2022/23 The unaudited accounts were issued on 26 June 2024. Mark Boyd Marie Burns Mark Boyd Councillor Marie Burns Head of Finance Leader North Ayrshire Council North Ayrshire Council Charity Description Bank and Cash in Hand Opening Balance Bank and Cash in Hand Surplus / (Deficit) Closing Balance Land and Buildings Market Value at 31 March Investments Market Value at 31 March n/a n/a £ £ £ £ £ SC042136 Anderson Park Trust 21 1 22 0 0 SC042101 Douglas Sellers Trust 306 (144) 162 0 0 SC042117 Margaret Archibald Bequest 57,882 4,472 62,354 0 226,188 SC025083 North Ayrshire Council Trust 87,327 9,263 96,590 110,000 103,236 SC043644 Dalry Trust 1,904 (76) 1,828 0 0 SC043600 Kilbirnie & Glengarnock Trust 3,010 (28) 2,982 0 0 SC043374 Kilwinning Trust 37,594 144 37,738 0 0 SC043494 Largs Trust 3,327 (1,014) 2,313 0 0 Total n/a 191,371 12,616 203,989 110,000 329,424 Charity Description Bank and Cash in Hand Opening Balance Bank and Cash in Hand Surplus / (Deficit) Closing Balance Land and Buildings Market Value at 31 March Investments Market Value at 31 March n/a n/a £ £ £ £ £ SC042136 Anderson Park Trust 158 (137) 21 0 0 SC042101 Douglas Sellers Trust 439 (133) 306 0 0 SC042117 Margaret Archibald Bequest 52,811 5,071 57,882 0 223,212 SC025083 North Ayrshire Council Trust 81,782 5,545 87,327 145,000 102,541 SC043644 Dalry Trust 2,019 (115) 1,904 0 0 SC043600 Kilbirnie & Glengarnock Trust 3,114 (104) 3,010 0 0 SC043374 Kilwinning Trust 37,328 266 37,594 0 0 SC043494 Largs Trust 3,436 (109) 3,327 0 0 Total n/a 181,087 10,284 191,371 145,000 325,753
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Notes to the Financial Statements 12 1. Basis of Accounting The Financial Statements have been prepared in accordance with the Charities & Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006. 2. Reorganisation During the period 2012 to 2014, North Ayrshire Council undertook a review of Sundry Trusts that resulted in the creation of eight new Town Trusts. The North Ayrshire Council Charitable Trust comprises those registered charitable funds that were not amalgamated on a geographical basis, including: Name of Trust Fund Purpose North Ayrshire Museum For Benefit of North Ayrshire Museum War Memorial Fund Largs War Memorial Fund Spier's Trust Education Prize for the Garnock Valley Robert Fleck Award Education Prize for Saltcoats schools 3. Taxation The Charitable Trusts are not liable to income or capital gains tax on their activities. Irrecoverable VAT is included in the expense to which it relates. 4. Trustee Remuneration, Expenses and Related Party Transactions a. No remuneration or expenses were paid to the Trustees or any connected persons during the year 2023/24 or 2022/23; and b. The Trusts received interest of £9,335 (2022/23: £2,902) from North Ayrshire Council at 31 March 2024 and all transactions incoming and outgoing are made via the Council’s bank accounts; and c. For 2023/24 charges for administration costs of £989 (2022/23: £936) have been levied by North Ayrshire Council, these were apportioned across the Trusts based on the current balances. 5. Grants 6 awards of grant, totalling £9,209 were awarded to individuals and community groups during 2023/24 (2022/23: 6 grants totalling £6,641 were awarded). All grants were approved for the benefit of the local community.
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Notes to the Financial Statements 13 6. Audit Fee The audit fee for the year was £1,100 (2022/23: £1,100), allocated across all Trusts. 7. Cash and Bank Balances During the year, the Trust’s balances were held by North Ayrshire Council, which manages the administration of the funds on behalf of the Trustees. The Council also acts as the banker for the Charity and as detailed above, all transactions incoming and outgoing are made via the Council’s accounts. The balances are repayable on demand. Interest is paid on balances. 8. Investments Two of the Trusts hold the following investments: Margaret Archibald Bequest Nominal Value Market Value at 31 March 2024 Market Value at 31 March 2023 £ £ £ GlaxoSmithKline plc 1,183.00 80,851 67,620 Marks & Spencer plc 400.00 3,910 2,463 Diageo plc 400.40 41,835 51,680 Barclays plc 336.00 2,460 1,960 Royal Dutch Shell plc 562.50 20,355 14,913 Unilever plc 37.00 47,905 50,490 British American Tobacco plc 300.00 28,872 34,086 Total 226,188 223,212 North Ayrshire Council Charitable Trust Purchase Price / Nominal Value Market Value at 31 March 2024 Market Value at 31 March 2023 £ £ £ JPM UK Higher Income Fund 1,789.50 7,516 7,068 Merchants Trust 406.25 8,645 8,970 Alliance Trust 72.50 35,572 28,168 Zeneca Group plc 67.50 28,831 30,326 Diageo 217.00 22,673 28,009 Total 103,236 102,541 9. Land and Buildings Income from property relates to grazing rents at Marshallands Grazings, Barrmill Road, Beith. The land was purchased for £25,000 in 2004 by the Spier’s Trust and was last revalued in 2023/24 at a current market value of £110,000. No depreciation is charged.