Charitable Trusts, Bequests and Trust Funds
Argyll and Bute Council · 10 December 2024
Back to Helensburgh & Lomond Area Committee — 10 December 2024 and its agenda
Text extracted from the council's PDF. Layout and reading order may differ from the original.
Page 1
CHARITABLE TRUSTS, BEQUESTS AND TRUST FUNDS 1.0 EXECUTIVE SUMMARY 1.1 The Helensburgh and Lomond Area Committee are Trustees for a number of Charitable Trusts, Bequests and Trust Funds. Historically a report has been brought to the Area Committee on an annual basis with recommendations for distribution. 1.2 Officers continually seek to simplify and update processes where possible to ensure ongoing compliance with the original terms of the bequests and to reduce the administrative burden of the management and distribution. There remains a number of challenges with a single charitable fund that was established many years ago, and as a consequence of changes in society over time the intended beneficiaries of the bequests are no longer easily identified. 1.3 This report provides details of a number of the Trusts and Bequests that remain active in the Helensburgh and Lomond Area and seeks agreement from Members on proposed distribution methods. 2.0 RECOMMENDATIONS 2.1 The Helensburgh and Lomond Area Committee are asked to: 1. consider the financial position of the Charitable Trusts, Bequests and Trust Funds as of August 2024, 2. agree to make available all unrestricted funds from the Helensburgh & Faslane Cemeteries Fund to Roads and Infrastructure and thereafter to place a moratorium on the fund, 3. agree that the ‘John Logie Baird Prize Fund’ prize be limited to £30, and 4. agree that the Miss Anne Dickson Bequest is awarded on the basis outlined in paragraph 5.4 and defined within appendix 1. ARGYLL AND BUTE COUNCIL HELENSBURGH AND LOMOND AREA COMMITTEE LEGAL & REGULATORY SUPPORT 10 December 2024
Page 2
CHARITABLE TRUSTS, BEQUESTS AND TRUST FUNDS 3.0 INTRODUCTION 3.1 The Helensburgh and Lomond Area Committee are Trustees of a number of Charitable Trusts, Bequests and Trust Funds. This report provides information on proposals in relation to the ongoing management of these funds and seeks agreement on distribution proposals. 4.0 RECOMMENDATIONS 4.1 The Helensburgh and Lomond Area Committee are asked to: 1. consider the financial position of the Charitable Trusts, Bequests and Trust Funds as of August 2024, 2. agree to make available all unrestricted funds from the Helensburgh & Faslane Cemeteries Fund to Roads and Infrastructure and thereafter to place a moratorium on the fund, 3. agree that the ‘John Logie Baird Prize Fund’ prize be limited to £30, and 4. agree that the Miss Anne Dickson Bequest is awarded on the basis outlined in paragraph 5.4 and defined within appendix 1. 5.0 BACKGROUND & DISTRIBUTION ARRANGEMENTS 5.1 Historically reports are prepared and submitted to Area Committees outlining the status of each of the funds, proposed distribution method(s) and the amounts available. 5.2 In September 2020 the Area Committee agreed that those funds that hold less than £1k in unrestricted reserves (i.e. monies the charity has available to spend without drawing on capital or restricted reserves) be made available, in their totality, during the financial year (2021/22). 5.3 In December 2021 the Area Committee agreed to place a moratorium on the distribution of monies from 4 of the 7 funds that had historically been awarded ARGYLL AND BUTE COUNCIL HELENSBURGH AND LOMOND AREA COMMITTEE LEGAL & REGULATORY SUPPORT 10 December 2024
Page 3
to Council Departments and allied partners. This approach served to lessen the administrative burden and will allow interest to accumulate to ensure maximum community benefit at a later date. A similar approach was taken in December 2023 with the Area Committee agreeing to ‘Kidston Park’ unrestricted funds being awarded, in their totality, to enhance the £368,500 Play Park renewal programme within the Helensburgh and Lomond area. A moratorium was subsequently placed on these funds. 5.7 Due to a higher interest rate on the Loans Fund being achieved in the year 2023-24, compared to 2022-23 the Helensburgh & Faslane Cemeteries Fund now has around £586 available for distribution. To realise community benefit from this fund it is recommended that the totality of this fund be made available to Roads and Infrastructure Services, on completion of works that meet the terms of the fund. Should the associated works reach the total amount available a moratorium would thereafter be placed on this fund. 5.4 In order to give a level of consistency to the process for those which are transferred to Council Departments or allied partners it is proposed that the Miss Anne Dickson Bequest be allocated on the basis of the interest from the previous financial year plus 1/20th of the unrestricted funds. This approach being the recommendation of Financial Officers as a means for members to meet their fiscal responsibilities as trustees, specifically that the funds are maintained over the longer term and not exhausted. 5.5 The exemption to this rule is the funds which relates to a school prize, ‘John Logie Baird Prize Fund’. 5.6 It is suggested the amount associated with the John Logie Baird Prize Fund be £30 this is in line with those awarded in other areas. This will be paid by Finance on receipt of confirmation of the recipient from the school and is awarded to a pupil showing the greatest ability in the subjects of Science and Mathematics. 5.9 Due to a number of factors including, changes in society over time and changes to personnel and corporate structures the intended beneficiaries of a single fund, Clydesdale Air Raid Distress fund, are no longer easily identified. Officers had been in ongoing dialogue with representatives from both the Lord Advocates office and The Scottish Charity Regulator in an attempt to establish appropriate methods of distributing these funds. 5.10 Largely as a consequence of the lack of associated documentation of the funds, despite making all reasonable enquiries, very little progress had been made. Consequently officers are of the opinion that progress can only now be made by following the provisions within the Law Reform (Miscellaneous Provisions) (Scotland ) Act 1990 and The Public Trusts (Reorganisation) (Scotland) (No.2) to re-organise the funds. 6.0 CONCLUSION
Page 4
6.1 This report has outlined the current position in terms of financial and distribution arrangements of the funds/bequests held in trust by the Area Committees. On approving the recommendations they will provide a clear community benefit while meeting our obligation of ensuring transparent and effective governance. 7.0 IMPLICATIONS 7.1 Policy - None. 7.2 Financial - None. 7.3 Legal - Area Committees, as Trustees, must ensure that the distribution arrangements comply with the terms of the funds/bequests, failure to do so would result in the Council being liable. 7.4 HR - To proceed with reorganisation, in terms of section 10 or 11 of the Law Reform (Miscellaneous Provisions) (Scotland) Act 1990 would require the allocation of Officer time. 7.5 Fairer Scotland Duty - None 7.5.1 Equalities – protected characteristics – None 7.5.2 Socio-Economic Duty – None 7.5.3 Islands – None 7.6 Climate Change – None 7.7 Risk – None 7.8 Customer Service – None 7.9 The Rights of the Child (UNCRC) – None Douglas Hendry Executive Director with responsibility for Legal & Regulatory Support November 2024 Policy Lead - Councillor Mark Irvine Appendix 1 – Distribution Arrangements for Trust Funds and Bequests. For further information contact: Stuart McLean, Committee Manager, 01436 658717, stuart.mclean@argyll-bute.gov.uk