Item 9 - Appendix 2
West Dunbartonshire Council · 9 November 2022
Back to Audit Committee — 9 November 2022 and its agenda
Text extracted from the council's PDF. Layout and reading order may differ from the original.
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DR A K GLEN & WEST DUNBARTONSHIRE TRUST FUNDS AUDITED ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 Appendix 2
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Dr A K Glen and West Dunbartonshire Trust Funds Financial Statements for the year ended 31 March 2022 Contents Pages Contents 2 Trustees’ Annual Report 3 – 6 Statement of Receipts and Payments 7 Statement of Balances 8 Note to the Accounts Audit Certificate 9 – 10 12 - 14
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Dr A K Glen and West Dunbartonshire Trust Funds Financial Statements for the year ended 31 March 2022 Trustees’ Annual Report Introduction The Trustees present the annual report together with the Financial Statements for the year ended 31 March 2022. Administration Information West Dunbartonshire Council (the Council) is sole Trustee for all Trust Funds with the exception of Dunbartonshire Educational Trust Scheme 1962 and McAuley Prize for Mathematics. The table below identifies the Trustees for 2021/22. Trust Funds Charity Number Trustees Local Authority Contact Address Dr A K Glen SC018701 Councillor Karen Conaghan Councillor David McBride Councillor Ian McLaren Councillor Brian Walker SC025070 Provost William Hendrie Councillor John Mooney Councillor Jim Brown Councillor Marie McNair Councillor Diane Docherty Councillor Jim Finn Councillor Daniel Lennie Councillor Douglas McAllister Councillor Lawrence O’Neill UIE Award SC025070 Councillor Jim Brown Councillor Ian Dickson Councillor Diane Docherty Councillor Jim Finn Councillor Daniel Lennie Councillor Caroline McAllister Councillor David McBride Councillor Jonathon McColl Councillor Iain McLaren Councillor John Mooney Councillor Martin Rooney Dunbartonshire Education Trust Scheme 1962 SC025070 Councillor Karen Conaghan West Dunbartonshire Council McAuley Prize for Mathematics SC025070 Councillor John Mooney West Dunbartonshire Council Bailie Denis Agnew West Dunbartonshire Council Councillor Graham Archibald Hardie Argyll & Bute Council Councillor John Jamieson East Dunbartonshire Council Councillor Gillian Fannan North Lanarkshire Council Councillor Thomas Johnston North Lanarkshire Council West Dunbartonshire Council, Council Offices, Church Street, Dumbarton, G82 1QL West Dunbartonshire Council West Dunbartonshire Council, Council Offices, Church Street, Dumbarton, G82 1QL Alexander Cameron Bequest West Dunbartonshire Council West Dunbartonshire Council, Council Offices, Church Street, Dumbarton, G82 1QL West Dunbartonshire Council West Dunbartonshire Council, Council Offices, Church Street, Dumbarton, G82 1QL
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Dr A K Glen and West Dunbartonshire Trust Funds Financial Statements for the year ended 31 March 2022 Objectives and 2021/22 Activity All trusts are advertised on the Council’s website and details have been passed to West Dunbartonshire Community and Volunteering Service (WDCVS) to publicise them. However, due to the COVID pandemic, a number of voluntary groups who would normally consider applying for grants were not active. Consequently, other than the Dr A K Glen and the Alexander Cameron Bequest, no Trusts met during 2021/22. The objectives and activities of each of the Trusts are detailed below: Charity Number Trust Fund Objective 2021/22 Activity SC018701 Dr A K Glen Fund The benefit of the people of Dumbarton, to assist and relieve those in need by reason of age. Only one grant application was received in year. Following consideration it was concluded the application met the Fund objectives and a £19,800 award was made. SC025070 Alexander Cameron Bequest The benefit of the people of Clydebank to assist those in need by reason of age, ill health, disability, financial hardship or other disadvantage. No awards were made, with the Trust meeting only once to agree a Strategy on investments. SC025070 UIE Award For students studying apprenticeships or training in industry. No awards but work to review and modernise the Trust’s governance arrangements to encourage funding applications in the future has been progressed SC025070 Dunbartonshire Educational Trust Scheme 1962 Awards educational prizes and bursaries. No awards for either. Trustees continue to seek clarification as to amendments to the governance arrangements. As these Trusts are governed by statute, discussions are ongoing between the Council (as Administrator) and Scottish Ministers and Office of the Scottish Charity Regulator (OSCR) regarding these arrangements SC025070 McAuley Prize for Mathematics Provides prizes for those studying maths and computing Structure and Governance Dr A K Glen and West Dunbartonshire Trust Funds are OSCR registered. The governance arrangements are under the control of the Council which appoints trustees as required. Currently, trustees are elected members of the Council with the exception of the Dunbartonshire Education Trust Scheme 1962 and McAuley Prize for Mathematics. The trustees of these two are elected
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Dr A K Glen and West Dunbartonshire Trust Funds Financial Statements for the year ended 31 March 2022 members from West Dunbartonshire Council, Argyll & Bute Council, East Dunbartonshire Council and North Lanarkshire Council. Following a review of the governance documents, it was agreed at Council on 31 August 2016 that the Trust Funds noted below would be delegated to sub-committees as follows: Trust Delegation Alexander Cameron Bequest Alexander Cameron Committee Dr A K Glen Fund Dumbarton Trust Sub-Committee The trustees have overall responsibility for ensuring there are appropriate systems of control, financial and otherwise. They are also responsible for keeping proper accounting records which disclose, with reasonable accuracy, the financial position of the Trusts and enable them to ensure Financial Statements comply with Charities Accounts (Scotland) Regulations 2006. They are also responsible for safeguarding the assets of the charity and are therefore responsible for taking reasonable steps to prevent and detect fraud and other irregularities and also provide reasonable assurances that: • The trusts are operating efficiently and effectively. • Assets are safeguarded against unauthorised use and disposition. • Proper records are maintained and financial information used by the charities is reliable. • The trusts comply with relevant laws and regulations. The systems of internal controls are designed to provide reasonable, but not absolute, assurance against material misstatement or loss. The systems of internal control follow those of the Council and, as such, much of this is delegated to the Council’s Chief Officer - Resources. The Council continually seeks to improve the effectiveness of its systems of internal control so that any irregularities are either prevented or quickly detected. The systems of internal control are based on a framework of regular management information, financial regulations, financial and administrative procedures (including segregation of duties), management supervision and a system of delegation and accountability. The Financial Statements and Trustees Report are prepared by the Council’s Finance Service. The appointed external auditors are Audit Scotland. The Council has agreed to meet the cost of this audit and not pass this on to the Trusts. This is to provide additional financial support to the Trusts, ensuring that core funds are not eroded, and objectives can continue to be achieved. The Trustees only meet as and when required during the year and will ensure that the required accounting arrangements are adhered to. Management of Funds and Investment Policy Decisions regarding the management of the Trusts are made by the Trustees. Trustees rely on the expertise of Council staff to manage the investments to ensure the maximum return at the least risk to the Trusts. In this way, the income stream for the future benefit of the Trusts is protected. Funds available are invested each year with interest earned. Investments are made both internally and externally, with the majority invested in the Council’s Loans Fund and externally managed by the Council.
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Dr A K Glen and West Dunbartonshire Trust Funds Financial Statements for the year ended 31 March 2022 Performance (Investments) Income for Dr A K Glen & West Dunbartonshire Trusts comes from investment returns. All Trusts (with the exception of those investments noted below) received income on their reserves held based upon the average interest rate used for internal investments within the Council’s loans fund was 0.063%. Following a Trustee decision in 2019/20, Alexander Cameron had an element of their funds in a fixed interest agreement (2.52%). Trustees met and agreed in February 2022 to continue this investment for a further fixed term of 2 years (the revised interest rate was 2.04%) and the overall impact of this was £2,429 of interest gained during 2021/22. Dunbartonshire Educational Trust Scheme 1962 continues to receive income from external investments i.e. 3% Clydeport and 4% Clydeport Consolidated Stock. These investments are managed by the Council and achieved investment income of £5 in 2021/22 (£5 in 2020/21). Financial Review The total balance on the Trusts as at 31 March 2022 (including stocks) is £262,521. On 8 July 2016 Clydeport Operations Ltd delisted 3% and 4% stocks from the London Stock Exchange. These are stocks held by Dumbarton Educational Trust. Until further information is available it has been assumed that the balance of this stock has remained the same as the previous year (£218). The Trusts held cash and bank balances at 31 March 2022 of £262,303. Reserves are held by the Council on behalf of the Trusts and revenue income, generated from investment interest that has not been disbursed at 31 March every year, is invested in line with the investment policy outlined above. Declaration The audited financial statements above were authorised for issue on behalf of the Trustees on 9 November 2022 by: Councillor Martin Rooney West Dunbartonshire Council 9 November 2022
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Dr A K Glen and West Dunbartonshire Trust Funds Financial Statements for the year ended 31 March 2022 Statement of Receipts and Payments Account Receipts 2020/21 Payments 2020/21 (Surplus) /Deficit 2020/21 Receipts 2021/22 Payments 2021/22 (Surplus) /Deficit 2021/22 £ £ £ £ £ £ (232) 0 (232) Dunbartonshire Educational Trust Scheme 1962 (62) 0 (62) (55) 0 (55) McAuley Prize for Mathematics (14) 0 (14) (2,138) 0 (2,138) Alexander Cameron Bequest (2,429) 0 (2,429) (62) 0 (62) Dr AK Glen (16) 19,800 19,784 (62) 0 (62) UIE Award (16) 0 (16) (2,549) 0 (2,549) Total (2,537) 19,800 17,263
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Dr A K Glen and West Dunbartonshire Trust Funds Financial Statements for the year ended 31 March 2022 Statement of Balances as at 31 March 2022 Opening Balance 2020/21 (Surplus) /Deficit 2020/21 Closing Balance 2020/21 Note Cash and Bank Opening Balance 2021/22 (Surplus) /Deficit 2021/22 Closing Balance 2021/22 £ £ £ £ £ £ (90,201) (232) (90,433) Dunbartonshire Educational Trust Scheme 1962 (90,433) (62) (90,495) (21,829) (55) (21,884) McAuley Prize for Mathematics (21,884) (14) (21,898) (115,638) (2,138) (117,776) Alexander Cameron Bequest (117,776) (2,429) (120,205) (24,670) (62) (24,732) Dr AK Glen (24,732) 19,784 (4,948) (24,679) (62) (24,741) UIE Award (24,741) (16) (24,757) (277,017) (2,549) (279,566) Total Cash and Bank (279,566) 17,263 (262,303) Investment (218) 0 (218) 5 Dunbartonshire Educational Trust Scheme 1962 (218) 0 (218) (218) 0 (218) Total Investment (218) 0 (218) (277,235) (2,549) (279,784) Overall Total (279,784) 17,263 (262,521) All funds are unrestricted which means they may be used for any purpose relevant to the Trust Fund. The audited Financial Statements were authorised for issue on 9 November 2022. Signed on behalf of the Trustees by:- Councillor Martin Rooney West Dunbartonshire Council 9 November 2022
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Dr A K Glen and West Dunbartonshire Trust Funds Financial Statements for the year ended 31 March 2022 Notes to the Financial Statements Note 1 - Basis of Accounting The Financial Statements have been prepared on a receipts and payments basis and in accordance with the Charities & Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006. Note 2 – Trustee Remuneration, Expenses and Related Party Transactions • No remuneration or expenses were paid to the Trustees or any connected persons during the 2021/22. • The Trusts received interest of £2,537 from the Council at 31 March 2022, and all transactions incoming and outgoing are made via the Council’s bank accounts. • The Council has not charged the Trusts any fees for legal, financial or administrative services provided during the year. Note 3 – Grants Due to the COVID pandemic, only one grant was awarded in 2021/22. Note 4 – Cash and Bank Balances During the year the Trust’s balances were held by the Council, which manages the administration of the funds on behalf of the Trustees. No costs were incurred by the Trusts for this administration. The Council also acts as the banker for the Trusts 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. Note 5 – Investment Dunbartonshire Educational Trust - The investment valuation of £218 (shown in the table below) is the market value as at 31 March 2016, as valued by the Council. Notification was received that the stocks were delisted in July 2016. There has been no further update on this and therefore the assumption is that the market price remains the same. Purchase Price as at 31 March 2021 Market Price as at 31 March 2021 Investment Purchase Price as at 31 March 2022 Market Price as at 31 March 2022 £ £ £ £ (289) (199) 4% Clydeport authority (289) (199) (35) (19) 3% Clydeport Authority (35) (19) (324) (218) Total (324) (218)
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Dr A K Glen and West Dunbartonshire Trust Funds Financial Statements for the year ended 31 March 2022 Note 5 – Investment (cont’d) Alexander Cameron – Following a decision on 23 February 2022, £20,000 was invested on a short term variable basis, with the remainder invested on a longer term fixed interest rate basis with the Council for two years at 2.04%. Note 6 – Audit Fee The audit fee for the year of £2,100 (£2,100 2020/21) was absorbed by the Council.
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Independent auditor’s report to the trustees of Dr A K Glen and West Dunbartonshire Trust Funds and the Accounts Commission Reporting on the audit of the financial statements Opinion on financial statements I certify that I have audited the financial statements in the statement of accounts of Dr A K Glen & West Dunbartonshire Trust Funds for the year ended 31 March 2022 under Part VII of the Local Government (Scotland) Act 1973 and section 44 (1)(c) of the Charities and Trustee Investment (Scotland) Act 2005. The financial statements comprise the Statement of Receipts and Payments, the Statement of Balances and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and a receipts and payments basis. In my opinion the accompanying financial statements: • Properly present the receipts and payments of the charities for the year ended 31 March 2022 and their statement of balances as at that date; and • have been prepared in accordance with the requirements of the Charities and Trustee Investment (Scotland) Act 2005, and regulations 9(1), (2) and (3) of The Charities Accounts (Scotland) Regulations 2006. Basis for opinion I conducted my audit in accordance with applicable law and International Standards on Auditing (UK) (ISAs (UK)), as required by the Code of Audit Practice approved by the Accounts Commission for Scotland. My responsibilities under those standards are further described in the auditor’s responsibilities for the audit of the financial statements section of my report. I am independent of the charities in accordance with the ethical requirements that are relevant to my audit of the financial statements in the UK including the Financial Reporting Council’s Ethical Standard, and I have fulfilled my other ethical responsibilities in accordance with these requirements. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion. Responsibilities of the Trustees for the financial statements The trustees are responsible for the preparation of financial statements which properly present the receipts and payments of the charities, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
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Auditor’s responsibilities for the audit of the financial statements My objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes my opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. I design procedures in line with my responsibilities outlined above to detect material misstatements in respect of irregularities, including fraud. Procedures include: • obtaining an understanding of the applicable legal and regulatory framework and how the charities are complying with that framework; • identifying which laws and regulations are significant in the context of the charities; • assessing the susceptibility of the financial statements to material misstatement, including how fraud might occur; and • considering whether the audit team collectively has the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations. The extent to which my procedures are capable of detecting irregularities, including fraud, is affected by the inherent difficulty in detecting irregularities, the effectiveness of the charities’ controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud are inherently more difficult to detect than irregularities that result from error as fraud may involve collusion, intentional omissions, misrepresentations, or the override of internal control. The capability of the audit to detect fraud and other irregularities depends on factors such as the skilfulness of the perpetrator, the frequency and extent of manipulation, the degree of collusion involved, the relative size of individual amounts manipulated, and the seniority of those individuals involved. A further description of the auditor’s responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website www.frc.org.uk/auditorsresponsibilities. This description forms part of my auditor’s report.
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Reporting on other requirements Other information The trustees are responsible for other information in the statement of accounts. The other information comprises the Trustees’ Annual Report. My responsibility is to read all the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements, or my knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If I identify such material inconsistencies or apparent material misstatements, I am required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work I have performed, I conclude that there is a material misstatement of this other information, I am required to report that fact. I have nothing to report in this regard. My opinion on the financial statements does not cover the other information and I do not express any form of assurance conclusion thereon except on the Trustees’ Annual Report to the extent explicitly stated in the following opinion prescribed by the Accounts Commission. Opinions prescribed by the Accounts Commission on the Trustees’ Annual Report In my opinion, based on the work undertaken in the course of the audit, the information given in the Trustees' Annual Report for the financial year for which the financial statements are prepared is consistent with the financial statements and that report has been prepared in accordance with The Charity Accounts (Scotland) Regulations 2006. Matters on which I am required to report by exception I am required by the Charity Accounts (Scotland) Regulations 2006 to report to you if, in my opinion: • proper accounting records have not been kept; or • the financial statements are not in agreement with the accounting records; or • I have not received all the information and explanations I require for my audit; I have nothing to report in respect of these matters.
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Use of my report This report is made solely to the parties to whom it is addressed in accordance with Part VII of the Local Government (Scotland) Act 1973 and for no other purpose. In accordance with paragraph 120 of the Code of Audit Practice, I do not undertake to have responsibilities to members or officers, in their individual capacities, or to third parties. Christopher Gardner Senior Audit Manager Audit Scotland, 4th Floor, South Suite, The Athenaeum Building, 8 Nelson Mandela Place, Glasgow, G2 1BT Christopher Gardner is eligible to act as an auditor in terms of Part VII of the Local Government (Scotland) Act 1973.