2021-22 NAC Trustees Annual Report
North Ayrshire Council · 22 June 2022
Back to North Ayrshire Council — 22 June 2022 and its agenda
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NORTH AYRSHIRE COUNCIL 22 June 2022 North Ayrshire Council Title: North Ayrshire Charitable Trusts: Unaudited Trustees’ Annual Report 2021/22 Purpose: To present the unaudited Trustees’ Annual Report for the year to 31 March 2022 to the Council, as trustees, for approval. Recommendation: That Council, as trustees of the North Ayrshire Council Charitable Trusts, approves the annual report for 2021/22, 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, Deloitte LLP, and a report on the outcome of the audit will be presented to the Audit and Scrutiny Committee on completion. 1.3 During 2021/22, the level of grant disbursement activity has been impacted by the pandemic and the subsequent lockdown restrictions. 2. Background 2.1 All charitable trusts registered with the Office of the Scottish Charity Regulator at 31 March 2022 are required to prepare Trustees’ Reports for 2021/22, 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 Deloitte LLP have been appointed as external auditors for 2021/22. 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 2021/22 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 At 31 March 2022, five Trusts and five 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; • H Watt Bequest(included within the North Ayrshire Charitable Trust); • Largs War Memorial Bequest (included within the North Ayrshire Charitable Trust); • North Ayrshire Museum Bequest (included within the North Ayrshire Charitable Trust); • Sir James Dyer Simpson Bequest (included within the North Ayrshire Charitable Trust); and • Spiers Trust (included within the North Ayrshire Charitable Trust). 2.6 It is recognised that the pandemic and subsequent lockdown restrictions have continued to impact the level of grant disbursement activity during 2021/22. 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 2021/22, subject to audit.
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4. Implications/Socio-economic Duty Financial 4.1 The cost of the audit for 2021/22 was £1,200, 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 2021/22. 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 2022
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Table of Contents 1 Trustees Annual Report 2 Independent Auditor’s Report 7 Statement of Receipts and Payments for year ended 31 March 2022 10 Statement of Balances as at 31 March 2022 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 2022. ADMINISTRATION INFORMATION The following Charities’ Financial Statements are included in this report: Charity Number Charity Name Charity Number Charity Name SC042136 Anderson Park Trust SC043644 North Ayrshire Council (Dalry) Charitable Trust SC042101 Douglas Sellers Trust SC043600 North Ayrshire Council (Kilbirnie & Glengarnock) Charitable Trust SC042117 Margaret Archibald Bequest SC043374 North Ayrshire Council (Kilwinning) Charitable Trust SC025083 North Ayrshire Council Charitable Trust SC043494 North Ayrshire Council (Largs) Charitable Trust Contact Address North Ayrshire Council Auditor Deloitte LLP Finance 110 Queen Street Cunninghame House Glasgow Irvine G1 3BX KA12 8EE Current Trustees John Bell Christina Larsen Timothy Billings Shaun Macaulay Marie Burns Tom Marshall Eleanor Collier Jean McClung Joe Cullinane Nairn McDonald Scott Davidson Matthew McLean Anthea Dickson Louise McPhater Stewart Ferguson Davina McTiernan Todd Ferguson Jim Montgomerie Robert Foster Ian Murdoch Scott Gallacher Donald L Reid John Glover Donald Reid Anthony Gurney Chloe Robertson Alan Hill Ronnie Stalker Cameron Inglis Angela Stephen Margaret Johnson John Sweeney Amanda Kerr
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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 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. Available documents include: Spier’s Trust: Trust Scheme North Ayrshire Museum: Scheme of Administration and Minute of Agreement Hugh Watt Bursary: Deed of Trust John Hugh Watt Scholarship Prize: Deed of Gift 1978 1958 1974 1873 1920 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 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.
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Trustees’ Annual Report 5 Charity Number Charity Name Objectives 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. 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 2022, 5 awards of grant totalling £10,025 were disbursed (2020/21 4 awards totalling £2,661). Although this was an increase over the previous year, the impact of Covid related restrictions has continued to result in fewer than anticipated grant applications during 2021/22. 6. FINANCIAL REVIEW Overview In the year to 31 March 2022, the Charitable Trusts made a surplus of £4,546 (2020/21 Surplus of £7,843). The Trusts held cash and bank balances at 31 March 2022 of £181,087 (2020/21 £176,541). 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 £333,663 at 31 March 2022 (2020/21 £283,873), (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.
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Trustees’ Annual Report 6 The undernoted Trusts have been identified as dormant having made no disbursements for at least one year, however it is recognised that the pandemic and subsequent lockdown restrictions have impacted on the level of grant disbursement activity during 2021/22: Charity Number Charity Name Period Dormant SC042136 Anderson Park Trust Over 5 years SC025083 North Ayrshire Council Charitable Trust bequests: H Watt Largs War Memorial North Ayrshire Museum Sir James Dyer Simpson Spiers Trust Current year Over 5 years Over 5 years Over 2 years Over 2 years SC042101 Douglas Sellers Trust Over 3 years SC043600 North Ayrshire Council (Kilbirnie & Glengarnock) Charitable Trust Over 3 years SC043644 North Ayrshire Council (Dalry) Charitable Trust Over 2 years SC043374 North Ayrshire Council (Kilwinning) Charitable Trust Over 2 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 This report was signed on behalf of the Trustees on September 2022 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
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Independent Auditor’s Report 8
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Independent Auditor’s Report 9
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Statement of Receipts and Payments for year ended 31 March 2022 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. 2021-22 Receipts Payments Charity Description Investments Property Rents Total Receipts Charitable Activities Governance Costs Total Payments £ £ £ £ £ £ £ SC042136 Anderson Park Trust - - - - 152 152 (152) SC042101 Douglas Sellers Trust 1 - 1 - 153 153 (152) SC042117 Margaret Archibald Bequest 11,414 - 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 - 3 - 160 160 (157) SC043600 Kilbirnie & Glengarnock Trust 4 - 4 - 166 166 (162) SC043374 Kilwinning Trust 49 - 49 - 327 327 (278) SC043494 Largs Trust 7 - 7 3,000 167 3,167 (3,160) Total 14,198 2,660 16,858 10,025 2,287 12,312 4,546 Surplus / (Deficit) 2020-21 Receipts Payments Charity Description Investments Property Rents Total Receipts Charitable Activities Governance Costs Total Payments £ £ £ £ £ £ £ SC042136 Anderson Park Trust 1 - 1 - 152 152 (151) SC042101 Douglas Sellers Trust 2 - 2 - 153 153 (151) SC042117 Margaret Archibald Bequest 6,573 - 6,573 2,136 376 2,512 4,061 SC025083 North Ayrshire Council Trust 3,233 2,660 5,893 525 583 1,108 4,785 SC043644 Dalry Trust 6 - 6 - 161 161 (155) SC043600 Kilbirnie & Glengarnock Trust 9 - 9 - 166 166 (157) SC043374 Kilwinning Trust 100 - 100 - 325 325 (225) SC043494 Largs Trust 18 - 18 - 182 182 (164) Total 9,942 2,660 12,602 2,661 2,098 4,759 7,843 Surplus / (Deficit)
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Statement of Balances as at 31 March 2022 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. The unaudited accounts were issued on the 22 June 2022. Signed on behalf of the Trustees on by Mark Boyd Councillor Marie Burns Head of Finance Leader North Ayrshire Council North Ayrshire Council 2021-22 Bank and Cash in Hand Land and Buildings Investments Charity Description Opening Balance Surplus / (Deficit) Closing Balance Market Value at 31 March Market Value at 31 March £ £ £ £ £ SC042136 Anderson Park Trust 310 (152) 158 - - SC042101 Douglas Sellers Trust 591 (152) 439 - - SC042117 Margaret Archibald Bequest 48,547 4,264 52,811 - 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 - - SC043600 Kilbirnie & Glengarnock Trust 3,276 (162) 3,114 - - SC043374 Kilwinning Trust 37,606 (278) 37,328 - - SC043494 Largs Trust 6,596 (3,160) 3,436 - - Total 176,541 4,546 181,087 145,000 333,663 2020-21 Bank and Cash in Hand Land and Buildings Investments Charity Description Opening Balance Surplus / (Deficit) Closing Balance Market Value at 31 March Market Value at 31 March £ £ £ £ £ SC042136 Anderson Park Trust 461 (151) 310 - - SC042101 Douglas Sellers Trust 742 (151) 591 - - SC042117 Margaret Archibald Bequest 44,486 4,061 48,547 - 199,209 SC025083 North Ayrshire Council Trust 72,654 4,785 77,439 145,000 84,663 SC043644 Dalry Trust 2,331 (155) 2,176 - - SC043600 Kilbirnie & Glengarnock Trust 3,433 (157) 3,276 - - SC043374 Kilwinning Trust 37,831 (225) 37,606 - - SC043494 Largs Trust 6,760 (164) 6,596 - - Total 168,698 7,843 176,541 145,000 283,872
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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 Sir James Dyer Simpson Education Prize for Largs Academy Spier's Trust Education Prize for the Garnock Valley Robert Fleck Award Education Prize for Saltcoats schools Hugh Watt Bursary Fund Education Prize for Irvine schools John Hugh Watt Scholarship Prize Education Prize for Irvine Royal Academy 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 2021/22 or 2020/21; and b. The Trusts received interest of £237 (2020/21: £458) from North Ayrshire Council at 31 March 2022 and all transactions incoming and outgoing are made via the Council’s bank accounts; and c. For 2021/22 charges for administration costs of £862 (2020/21: £825) have been levied by North Ayrshire Council. 5. Grants 5 awards of grant, totalling £10,025, were awarded to individuals and community groups during 2021/22 (2020/21: 4 grants totalling £2,661 were awarded). 3 grants were awarded to community groups and 2 to schools, all for the benefit of the local community. 6. Audit Fee The audit fee for the year was £1,200 (2020/21: £1,200), allocated across all Trusts.
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Notes to the Financial Statements 13 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 2021/22 at a current market value of £145,000. No depreciation is charged. Margaret Archibald Bequest Nominal Value Market Value at 31 March 2022 Market Value at 31 March 2021 £ £ £ GlaxoSmithKline plc 1,183 77,946 60,948 Marks & Spencer plc 400 2,282 2,225 Diageo plc 400 55,248 42,750 Barclays plc 336 1,993 2,499 Royal Dutch Shell plc 563 13,621 8,624 Unilever plc 37 41,633 48,875 British American Tobacco plc 300 38,334 33,288 231,056 199,209 North Ayrshire Council Charitable Trust Purchase Price / Nominal Value Market Value at 31 March 2022 Market Value at 31 March 2021 £ £ £ JPM UK Higher Income Fund 1,790 7,482 6,997 Merchants Trust 406 9,311 8,060 Alliance Trust 73 28,515 26,867 Zeneca Group plc 68 27,356 19,567 Diageo 217 29,942 23,173 102,607 84,664