Stirling Council. Consolidated Small Charitable Trusts. Annual Report and Financial Statements. For the Year Ended 31 March 2016

Transcription

1 Consolidated Small Charitable Trusts Annual Report and Financial Statements For the Year Ended 31 March 2016

2 Contents Page Trustees Annual Report 3 Independent Auditor s Report 7 Statement of Receipts and Payments 8 Statement of Balances 8 Notes to the Financial Statements 9 2

3 Trustees Annual Report For the Year Ended 31 March 2016 Section 106 of the Local Government (Scotland) Act 1973 applies the accounting and audit requirements of the Act to any trust fund where an authority or some members of the authority are the sole trustees. Local authorities administer a number of such trust funds some of which are registered as charities with the Office of the Scottish Charity Regulator (OSCR). The preparation and audit of financial statements prepared by registered charities is regulated by the Charities and Trustee Investment (Scotland) Act 2005 (the 2005 Act) and The Charities Accounts (Scotland) Regulations 2006 (the 2006 regulations). The 2006 regulations require charities to prepare a statement of account, and require an accompanying auditor's report where any legislation requires an audit. As section 106 requires an audit, the appointments of local authority auditors have been extended to include the provision of an auditor's report for charitable funds covered by that section. Regulation 7 of the 2006 regulations permits connected charities to prepare a single set of accounts. Charities are connected if they have common or related purposes, or shared management. acts as sole Trustee to 19 individual small charitable trusts. On the basis of this shared management arrangement, the has taken the decision to consolidate the results of the 19 individual small charitable trusts into a single set of accounts for audit purposes. The Trustees have pleasure in presenting their report, together with the consolidated financial results of the 19 individual small charitable trusts and the auditor s report for the year ended 31 March Reference & Administrative Information Charity Name and Number The 19 individual small charitable trusts consolidated within this set of accounts are as follows: Charity Number Charity Name SC P.M McIntyre Bequest SC MacFarlane Free Library Endowment Fund SC The Village Club Strathblane SC William Drummond Trust for Upkeep of Wigtownshire Martyrs Monument SC George Murdoch Memorial Fund for Poor SC Miss Victoria M Anderson Trust SC Miss Catherine C Halley Bequest SC Rev Dr John Ebenezer Honeyman Thomson Bequest for Public Library SC Belle Richardson Dobbie Fund for Poor SC Gargunnock Rest Garden Fund SC Miss Barbara Morrison Bequest for Coals for Poor SC A.E Foster Bequest for Poor SC William McCowan Bequest for Poor SC Killearn War Memorial Fund SC Gargunnock Mortification Fund for Relief of Poverty SC Strathblane War Memorial Fund SC Robert Buchanan Mortification SC Baird Airston Mortification for Poor SC Charitable Trusts 3

4 Address c/o Iain Strachan Chief Governance Officer & Solicitor to the Viewforth FK8 2ET Current Trustees Trust Officers James Boyle Chief Finance Officer Iain Strachan Chief Governance Officer & Solicitor to the Independent Auditor Grant Thornton UK LLP 7 Exchange Crescent EDINBURGH EH3 8AN Structure, Governance and Management Constitution Each Charity is an unincorporated association governed by its constitution. The respective date of constitution for each individual Charity is outlined in the table on page 5. It should be noted that the governing documents are not available for all charities as these have been lost over time. Funds are not used for any purpose other than the charitable purpose. Appointment of Trustees, acting as a corporate body makes decisions in accordance with its Scheme of Delegation. The Scheme of Delegation does not make provision for decisions in respect of each Charity to be made by a Committee, Sub-Committee, or Officer. As a result power to make decisions is reserved to and is exercised through meetings of the full. Management The s Chief Finance Officer as the proper officer for the administration of its financial affairs in terms of section 95 of the Local Government (Scotland) Act 1973 is also the proper officer in respect of the financial affairs of each Charity. The Solicitor to the as the proper officer in respect of the authentication of documents in terms of section 193 of the Local Government (Scotland) Act 1973 is also the proper officer in respect of the authentication of documents of each Charity. Objectives & Activities Charitable Purposes Each individual Charity was established for a specific purpose as outlined in the table on page 5. Charity SC ( Charitable Trusts) was established generally for the provision of relief to those in need by reason of age, ill health, disability, financial hardship or other disadvantage. The Charity however encompasses a number of small individual sub-funds, each with their own particular purpose. 4

5 Charity No. Constituted Charity Name SC P.M McIntyre Bequest SC MacFarlane Free Library Endowment Fund SC The Village Club Strathblane SC SC William Drummond Trust for Upkeep of Wigtownshire Martyrs Monument George Murdoch Memorial Fund for Poor SC Miss Victoria M Anderson Trust SC Miss Catherine C Halley Bequest SC Rev Dr John Ebenezer Honeyman Thomson Bequest for Public Library SC Belle Richardson Dobbie Fund for Poor SC Gargunnock Rest Garden Fund SC Miss Barbara Morrison Bequest for Coals for Poor SC Unknown A.E Foster Bequest for Poor SC William McCowan Bequest for Poor SC Killearn War Memorial Fund SC Unknown Gargunnock Mortification Fund for Relief of Poverty SC Strathblane War Memorial Fund SC Robert Buchanan Mortification SC Baird Airston Mortification for Poor Charitable Purpose To provide general improvements in Callander and the surrounding area. To provide a free library for the inhabitants of, and in particular, the working and poorer classes. To provide a village club with reading room, library and recreation facilities for the inhabitants of Strathblane. For the maintenance and upkeep of the Wigtownshire Martyrs Monument, together with the walks and grounds within the Valley Cemetery,. of suffering financial hardship. For the purpose of improving the amenity of Castle, including in particular the Back Walk. For the benefit of persons with physical disabilities and/or mental health needs. For the purpose of providing books of a religious nature to Public Library. of and Bannockburn suffering financial hardship. For the purpose of providing an area of recreational ground at Gargunnock for the benefit of children and the elderly. For the assistance to poor of Bridge of Allan and/or educate youth, make any improvements to the Bridge of Allan area. of Bridge of Allan suffering financial hardship. of Bridge of Allan suffering financial hardship. For the purpose of the maintenance and upkeep of the Killearn war memorial. For the purpose of providing assistance to Gargunnock inhabitants experiencing financial hardship.. For the purpose of the maintenance and upkeep of the Strathblane war memorial. of Kippen suffering financial hardship. of Fintry suffering financial hardship. Charitable Trusts: SC Lair Purchase For the benefit of the poor (no geographical information) SC Batterflats Home Comforts For the benefit of the residents of Batterflats Home SC OAP Treat Fund For the benefit of the OAPs of SC Blind Persons Fund For the benefit of blind persons SC Maintenance of Lairs For the maintenance of specific individuals cemetery lairs SC George.C. Thomson Bequest For amenity improvements in Callander SC Dunblane Institute For the benefit of the people of Dunblane SC Miss C Whitehead Bequest For the provision of coal to the poor of Dunblane SC Kate S Neilson Bequest For the enhancement of Dunblane SC Strathblane Tennis Club For the benefit of the people of Strathblane SC Water of Endrick For the benefit of the poor of Water of Endrick SC Perth & Kinross Education For the benefit of the people of Dunblane SC Miss Margaret Ogilvie Bequest For the benefit of the poor (no geographical information) SC Cornton Community For the benefit of the people of Cornton Activities No financial activities were undertaken by the aforementioned charities in the year ended 31 March

6 Financial Review Income earned across all charities in 2015/16 totalled 510 ( 897, 2014/15) representing interest received on bank deposits, government stocks and funds invested in s Loans Fund. No monies were disbursed from any of the charities during 2015/16 ( nil, 2014/15). Capital sums totalling 2,110, which included a gain on disposal of 412 received from the redemption of government stocks as outlined in Note 6 were invested in s Loans Fund. Total Funds held by all charities stood at 110,570 as at 31 March 2016 ( 109,648, 31 March 2015). All funds were invested in s Loans Fund. Reserves Policy There is currently no specific reserves policy in place for each of the aforementioned Charities. Plans for Future Periods Chapter 5 of The Charities Act 2005 provides for the reorganisation of charities, including amalgamation or winding up. is currently conducting a review of the 19 small charitable trusts which it administers with the objective of reorganising these into fewer charities, and/or transferring the balances held to external charitable organisations who may be better placed to meet the purposes for which the trusts were originally established. As part of this review, work was carried out during 2014/15 and 2015/16 to close down all 13 bank accounts held in the name of individual small charitable trusts. In addition, 25 government stocks held in the name of individual small charitable trusts have been redeemed. All bank and stock redemption monies have been invested in s Loans Fund. It is intended that a report outlining proposals from the review be brought before for consideration later in Until then, the trustees will continue to ensure that individual Charity balances are invested for the benefit of each Charity, and will be held and used in accordance with each Charity s objectives. Iain Strachan Chief Governance Officer & Solicitor to the 26 May

7 Independent Auditor s Report Independent auditor s report to the trustees of Consolidated Small Charitable Trusts and the Accounts Commission for Scotland We certify that we have audited the financial statements of Consolidated Small Charitable Trusts for the year ended 31 March 2016 under Part VII of the Local Government (Scotland) Act 1973 and section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act The financial statements comprise the statement of receipts and payments, statement of balances and the related notes. The financial reporting framework that has been applied in their preparation is a receipts and payments basis. 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 125 of the Code of Audit Practice approved by the Accounts Commission for Scotland, we do not undertake to have responsibilities to members or officers, in their individual capacities, or to third parties. Respective responsibilities of the trustees and auditor The trustees are responsible for the preparation of the financial statements which properly present the receipts and payments of the charity. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland) as required by the Code of Audit Practice approved by the Accounts Commission for Scotland. Those standards require us to comply with the Auditing Practices Board s Ethical Standards for Auditors. Scope of the audit of the financial statements An audit involves obtaining evidence about the amounts or disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the charity s circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the trustees; and the overall presentation of the financial statements. In addition, we read all the financial and non-financial information in the Annual Report and Financial Statements to identify material inconsistencies with the audited financial statements and to identify any information that is apparently materially incorrect based on, or materially inconsistent with, the knowledge acquired by us in the course of performing the audit. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report. Opinion on financial statements In our opinion the financial statements: properly present the receipts and payments of the charity for the year ended 31 March 2016 and its statement of balances 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 Opinion on other prescribed matter In our opinion 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. Matters on which we are required to report by exception We are required by The Charity Accounts (Scotland) Regulations 2006 to report to you if, in our opinion: proper accounting records have not been kept; or the financial statements are not in agreement with the accounting records; or we have not received all the information and explanations we require for our audit. We have nothing to report in respect of these matters. Joanne Brown, (for and on behalf of Grant Thornton UK LLP) 7 Exchange Crescent Edinburgh EH3 8AN 26 May 2016 Joanne Brown is eligible to act as an auditor in terms Part VII of the Local Government (Scotland) Act

8 Statement of Receipts and Payments - For the Year Ended 31 March 2016 Total Total 2015/ /15 Voluntary Receipts Investment Income - Note Investment Income - Stocks Note Bank Interest Note 4-21 Total Receipts Note Surplus For the Year Note Statement of Balances - As at 31 March 2016 Total Total 2015/ /15 Funds Reconciliation Total Funds - 31/03/15 109, ,592 Surplus For the Year (as above) Note Gains on Disposal of Government Stock Note ,159 Total Funds - 31/03/16 Note 5 110, ,648 Cash & Bank Balances Investments - Loans Fund Note 5 110, ,950 Total Cash & Bank Balances Note 5 110, ,950 Government Stocks Investments - 3.5% Conversion Stock Note 6-1,698 Total Government Stocks Note 6-1,698 Total Funds Note 5 110, ,648 All funds are restricted meaning that they may only be used for specific purposes The notes on pages 9 to 11 form an integral part of these accounts. James Boyle Iain Strachan Chief Finance Officer Chief Governance Officer & Solicitor to the 26 May May

9 Notes to the Financial Statements 1. Basis of Accounting These accounts have been prepared on the Receipts & Payments basis in accordance with the Charities & Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006 (as amended). 2. Nature and Purpose of Funds Restricted funds may only be used for specific purposes. Restrictions arise when specified by a donor or when funds are raised for specific purposes. Charity SC ( Charitable Trusts) encompasses a number of small individual sub-funds, each with their own particular purpose. For this reason, the sub-funds listed in Note 4 are thereby classified as restricted since the monies in one sub-fund cannot be applied to purposes within another sub-fund. For a number of the charitable trusts there are no governing documents, therefore as a prudent approach, all the funds of these trusts have been classified as restricted. 3. Related Party Transactions No trustee or any person connected to them received remuneration or expenses from any of the charities during 2015/16 ( Nil, 2014/15). Interest income of 473 was earned in 2015/16 from funds invested with s Loans Fund ( 445, 2014/15). 4. Surplus for the Year The following table shows the Surplus for the Year of 510 (2014/15, 897) analysed across the various sources of income earned by each individual charity. 2015/ /15 Govt Total Bank Govt Stocks Income Deposits Stocks Total Income P.M McIntyre Bequest MacFarlane Free Library The Village Club Strathblane William Drummond Trust George Murdoch Memorial Fund Miss Victoria M Anderson Trust Miss Catherine C Halley Bequest Rev Dr JEH Thomson Bequest Belle Richardson Dobbie Fund Gargunnock Rest Garden Fund Miss Barbara Morrison Bequest A.E Foster Bequest William McCowan Bequest Killearn War Memorial Fund Gargunnock Mortification Fund Strathblane War Memorial Fund Robert Buchanan Mortification Baird Airston Mortification Charitable Trusts (see note below) Total Income

10 Note: Income earned by each of the individual sub-funds consolidated within Charity SC ( Charitable Trusts) is as follows: 2015/ /15 Total Bank Income Deposits Govt Stocks Total Income Lair Purchase Batterflats Home Comforts OAP Treat Fund Blind Persons Fund Maintenance of Lairs George C Thomson Bequest Dunblane Institute Miss C Whitehead Bequest Kate S Neilson Bequest Strathblane Tennis Club Water of Endrick Perth & Kinross Education Miss Margaret Ogilvie Bequest Cornton Community Total Income Total Funds The following table shows Total Funds of 110,570 as at 31 March 2016 ( 109,648, 31 March 2015) analysed across each individual charity. Total Funds 31/3/16 Govt Stocks Total Funds 31/3/15 P.M McIntyre Bequest 5,397 5,397 5,373-5,373 MacFarlane Free Library 6,054 6,054 6,028-6,028 The Village Club Strathblane 1,528 1,528 1,522-1,522 William Drummond Trust 1,482 1,482 1,476-1,476 George Murdoch Memorial Fund 14,817 14,817 12,628 1,682 14,310 Miss Victoria M Anderson Trust 2,372 2,372 2,362-2,362 Miss Catherine C Halley Bequest 4,574 4,574 4,554-4,554 Rev Dr JEH Thomson Bequest 5,397 5,397 5,374-5,374 Belle Richardson Dobbie Fund 20,447 20,447 20,360-20,360 Gargunnock Rest Garden Fund 1,331 1,331 1,325-1,325 Miss Barbara Morrison Bequest 1,144 1,144 1,139-1,139 A.E Foster Bequest 7,158 7,158 7,127-7,127 William McCowan Bequest 2,427 2,427 2,417-2,417 Killearn War Memorial Fund 1,560 1,560 1,553-1,553 Gargunnock Mortification Fund 3,806 3,806 3,790-3,790 Strathblane War Memorial Fund Robert Buchanan Mortification Baird Airston Mortification Charitable Trusts (see note below) 28,996 28,996 28, ,867 Total Funds 110, , ,950 1, ,648 10

11 Note: Total Funds held in the name of each of the individual sub-funds consolidated within Charity SC ( Charitable Trusts) are as follows: Total Funds 31/3/16 Govt Stocks Total Funds 31/3/15 Lair Purchase Batterflats Home Comforts OAP Treat Fund Blind Persons Fund Maintenance of Lairs 8,294 8,294 8,259-8,259 George C Thomson Bequest 8,202 8,202 8,167-8,167 Dunblane Institute Miss C Whitehead Bequest Kate S Neilson Bequest 5,409 5,409 5,386-5,386 Strathblane Tennis Club 1,782 1,782 1,775-1,775 Water of Endrick Perth & Kinross Education Miss Margaret Ogilvie Bequest 1,243 1,243 1,238-1,238 Cornton Community Total Funds 28,996 28,996 28, , Gains on Revaluation and Disposal of Government Stocks is currently conducting a review of all 19 small charitable trusts which it administers with the objective of reorganising these into fewer charities, and/or transferring the balances held to external charitable organisations who may be better placed to meet the purposes for which the trusts were originally established. As part of this review, work was carried out during 2014/15 to redeem 23 individual government stocks held in the name of small charitable trusts. As at 31 March 2015, only 2 separate 3.5% conversion stocks remained to be redeemed (George Murdoch Memorial Fund and Blind Person s Fund), with those redemptions taking place during 2015/16. The following table shows the net gains arising from the disposal of these stocks as at 31 March Stock Values Disposed 31/3/ /16 Stock Disposals 2014/15 Stock Disposals Stock Gain/(Loss) on Stock Stock Disposal Stock Values Disposal Income Disposals Disposed Income 2015/16 31/3/16 31/3/ /15 Gain/(Loss) on Stock Disposals 31/3/15 P.M McIntyre Bequest The Village Club Strathblane William Drummond Trust (5) George Murdoch Memorial Fund 1,682 2, A.E Foster Bequest ,805 2, William McCowan Bequest Gargunnock Mortification Fund (36) Strathblane War Memorial Fund Robert Buchanan Mortification Blind Persons Fund Maintenance of Lairs ,436 2, Dunblane Institute Miss C Whitehead Bequest Totals 1,698 2, ,221 8,380 1, Revenue Recognition Interest income received on Investments is recognised in the financial period in which the interest is received. 11