NAC210621 DirApp Unaudited Trustees Annual Report 2022-23
North Ayrshire Council · 21 June 2023
Back to North Ayrshire Council — 21 June 2023 and its agenda
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NORTH AYRSHIRE COUNCIL 21 June 2023 North Ayrshire Council Title: North Ayrshire Charitable Trusts: Unaudited Trustees’ Annual Report 2022/23 Purpose: To present the unaudited Trustees’ Annual Report for the year to 31 March 2023 to the Council, as trustees, for approval. Recommendation: That Council, as trustees of the North Ayrshire Council Charitable Trusts, approves the annual report for 2022/23, 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 During 2022/23 Hugh Watt Bursary, Sir James Dyer Simpson Bequest and John Hugh Watt Scholarship, held within North Ayrshire Council Charitable Trust, exhausted their capital through the disbursement of grants and, with the agreement of OSCR, have been wound up. 1.3 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. 1.4 During 2022/23, the level of grant disbursement activity has continued to be low and has not yet returned to pre pandemic levels.
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2. Background 2.1 All charitable trusts registered with the Office of the Scottish Charity Regulator at 31 March 2023 are required to prepare Trustees’ Reports for 2022/23, 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 2022/23. 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. 2.3 During 2022/23 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 2022/23 grant disbursements were approved in relation to Hugh Watt Bursary, Sir James Dyer Simpson Bequest and John Hugh Watt Scholarship, held within North Ayrshire Council Charitable Trust, which resulted in the exhaustion of the available capital and, with the agreement of OSCR, the trusts have been wound up. 2.5 At 31 March 2023, seven 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; • North Ayrshire Council (Kilwinning) Charitable Trust; • North Ayrshire Council (Largs) 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 Grant disbursement activity during 2022/23 has not yet returned to pre pandemic levels. Officers will continue to monitor activity and seek appropriate options going forward. However, if no options are identified for the use of these funds, the funds may be exhausted through the application of external audit fees and administration costs. 3. Proposals 3.1 It is proposed that Council, as trustees of the North Ayrshire Council Charitable Trusts, approves the annual report for 2022/23, subject to audit.
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4. Implications/Socio-economic Duty Financial 4.1 The cost of the audit for 2022/23 was £1,100, which has been borne by the charitable trusts. Human Resources 4.2 None. 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 of active and strong communities, people enjoy good life-long health and well-being and a sustainable environment as outlined in the draft Council Plan 2019-24. Community Wealth Building 4.7 None. 5. Consultation 5.1 Legal Services were consulted during the preparation of the Trustees’ Annual Report 2022/23. 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 2023
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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 2023 12 Statement of Balances as at 31 March 2023 13 Notes to the Financial Statements 14
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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 2023. 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, John Glover, 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 During 2022/23 Hugh Watt Bursary, Sir James Dyer Simpson Bequest and John Hugh Watt Scholarship held within North Ayrshire Charitable Trust were wound up, with the agreement of OSCR, following the exhaustion of its capital through the disbursement of grants. 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 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. 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 2023, 2 awards of grant totalling £4,250 were disbursed (2021/22 5 awards totalling £10,025). In the year to 31 March 2023, the total income across the Trusts was £19,029 (2021/22 £16,858). Grant disbursement activity during 2022/23 has not yet returned to pre pandemic levels. 6. FINANCIAL REVIEW Overview In the year to 31 March 2023, the Charitable Trusts made a surplus of £10,284 (2021/22 Surplus of £4,546). The Trusts held cash and bank balances at 31 March 2023 of £191,371 (2021/22 £181,087). 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 £325,753 at 31 March 2023 (2021/22 £333,663), (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. 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 5 years SC025083 North Ayrshire Council Charitable Trust bequests: Largs War Memorial North Ayrshire Museum Spiers Trust Over 5 years Over 5 years Over 3 years SC042101 Douglas Sellers Trust Over 4 years SC043600 North Ayrshire Council (Kilbirnie & Glengarnock) Charitable Trust Over 4 years SC043644 North Ayrshire Council (Dalry) Charitable Trust Over 3 years SC043374 North Ayrshire Council (Kilwinning) Charitable Trust Over 3 years SC043494 North Ayrshire Council (Largs) Charitable Trust Current Year 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 This report was signed on behalf of the Trustees on XX September 2023 by: Mark Boyd Councillor Marie Burns Head of Finance Leader North Ayrshire Council North Ayrshire Council
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Independent Auditor’s Report 7 The independent auditor’s report to the trustees and the Accounts Commission for Scotland will be presented to Council for approval following completion of the audit. The auditor with responsibility for the audit of the Trustees’ annual report for the year ended 31 March 2023 is: Audit Scotland 4th Floor, South Suite The Athenaeum Building 8 Nelson Mandela Place Glasgow G2 1BT
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Independent Auditor’s Report 8 This Page is Intentionally Blank
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Independent Auditor’s Report 9 This Page is Intentionally Blank
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Independent Auditor’s Report 11 This Page is Intentionally Blank
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Statement of Receipts and Payments for year ended 31 March 2023 12 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. 2022-23 2021-22 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 6,136 1,580 7,716 1,609 562 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 17,449 1,580 19,029 6,709 2,036 8,745 10,284 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 - 0 - 0 152 152 (152) SC042101 Douglas Sellers Trust 1 0 1 0 153 153 (152) SC042117 Margaret Archibald Bequest 11,414 0 11,414 6,750 400 7,150 4,264 SC025083 North Ayrshire Council Trust 2,720 2,660 5,380 275 762 1,037 4,343 SC043644 Dalry Trust 3 0 3 0 160 160 (157) SC043600 Kilbirnie & Glengarnock Trust 4 0 4 0 166 166 (162) SC043374 Kilwinning Trust 49 0 49 0 327 327 (278) SC043494 Largs Trust 7 0 7 3,000 167 3,167 (3,160) Total n/a 14,198 2,660 16,858 10,025 2,287 12,312 4,546
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Statement of Balances as at 31 March 2023 13 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. 2022-23 2021-22 The unaudited accounts were issued on 21 June 2023. Signed on behalf of the Trustees on XX September 2023 by 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 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 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 310 (152) 158 0 0 SC042101 Douglas Sellers Trust 591 (152) 439 0 0 SC042117 Margaret Archibald Bequest 48,547 4,264 52,811 0 231,056 SC025083 North Ayrshire Council Trust 77,439 4,343 81,782 145,000 102,607 SC043644 Dalry Trust 2,176 (157) 2,019 0 0 SC043600 Kilbirnie & Glengarnock Trust 3,276 (162) 3,114 0 0 SC043374 Kilwinning Trust 37,606 (278) 37,328 0 0 SC043494 Largs Trust 6,596 (3,160) 3,436 0 0 Total n/a 176,541 4,546 181,087 145,000 333,663
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Notes to the Financial Statements 14 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 2022/23 or 2021/22; and b. The Trusts received interest of £2,902 (2021/22: £237) from North Ayrshire Council at 31 March 2023 and all transactions incoming and outgoing are made via the Council’s bank accounts; and c. For 2022/23 charges for administration costs of £936 (2021/22: £862) have been levied by North Ayrshire Council, these were apportioned across the Trusts based on the current balances. 5. Grants 2 awards of grant, totalling £4,250 were awarded to individuals and community groups during 2022/23 (2021/22: 5 grants totalling £10,025 were awarded). 1 grant was awarded to a community group and 1 to a school, all for the benefit of the local community.
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Notes to the Financial Statements 15 6. Audit Fee The audit fee for the year was £1,100 (2020/21: £1,200), 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: 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 2022/23 at a current market value of £145,000. No depreciation is charged. Margaret Archibald Bequest Nominal Value Market Value at 31 March 2023 Market Value at 31 March 2022 £ £ £ GlaxoSmithKline plc 1,183.00 67,620 77,946 Marks & Spencer plc 400.00 2,463 2,282 Diageo plc 400.40 51,680 55,248 Barclays plc 336.00 1,960 1,993 Royal Dutch Shell plc 562.50 14,913 13,621 Unilever plc 37.00 50,490 41,633 British American Tobacco plc 300.00 34,086 38,334 Total 223,212 231,056 North Ayrshire Council Charitable Trust Purchase Price / Nominal Value Market Value at 31 March 2023 Market Value at 31 March 2022 £ £ £ JPM UK Higher Income Fund 1,789.50 7,068 7,482 Merchants Trust 406.25 8,970 9,311 Alliance Trust 72.50 28,168 28,515 Zeneca Group plc 67.50 30,326 27,356 Diageo 217.00 28,009 29,942 Total 102,541 102,607