Issue - meetings

Annual Report 2018/19 - Further Education Trust

Meeting: 28/10/2019 - The Executive (Item 7)

7 Anglesey Further Education Trust Annual Report and Accounts 2018/19 pdf icon PDF 769 KB

To submit a report by the Director of Function (Resources)/Section 151 Officer.  

Additional documents:

Decision:

It was resolved to approve the Annual Report and Accounts for the Anglesey Further Education Trust for 2018/19 as presented under Appendix A to the report.

Minutes:

The report of the Director of Function (Resources)/Section 151 Officer incorporating the Annual Report and Accounts for the Anglesey Further Education Trust for 2018/19 was presented for the Executive’s consideration.

 

The Portfolio Member for Finance reported that the report provides an overview of the background of the Anglesey Further Education Trust including the legal status of the Trust and the different elements within it i.e. the three funds that make up the Trust (The David Hughes Charitable Estate; the Anglesey Further Education Trust Funds 1/3 - Restricted Fund, and the Anglesey Further Education Trust Funds 2/3 - Restricted Fund). The Trust earns income from rents from the David Hughes Endowment Trust portfolio of properties, dividends from equity investments, other interests and sale of investments. Expenditure relates to maintenance of properties, utilities, charitable purposes, governance fees (audit) and property management fees. Detailed information in relation to the income, expenditure and assets of the Trust are provided in Appendix A to the report which include the financial accounts for the Trust for 2018/19. These show that there was a net gain of £113,016 for the year; investment income amounted to £131,010 (of which £125,970 was from the David Hughes Estate and £5,040 came from dividends and interest). Expenditure for the period was £126,589 of which £99,943 went on repairs and maintenance. As at 31 March, 2019 the total funds of the Trust were £3,237,050 of which £372,681 was the cash balance of the Trust at this date.

 

The Director of Function (Resources)/Section 151 Officer recapped on the charitable purposes of the three funds into which the Anglesey Further Education Trust is divided, the principal funding sources and the distribution of funding between the three funds. (Paragraph 2.1 of the report refers).The Officer highlighted that there has been much expenditure on bringing the charity’s ageing property portfolio up to standard and that this investment continued into 2018/19 with £99,943 being expended on repairs and maintenance of the David Hughes estate leaving a surplus of £5,621 to be distributed between the three funds. Most of the value of the Fund comes from the David Hughes estate - £2,545,800.The Fund is therefore financially healthy, and the report above brings the reporting of the Anglesey Further Education Trust accounts up to date.

 

The Executive was grateful for the work undertaken by the Finance Service in bringing greater clarity to the workings of the Anglesey Further Education Trust through this and the report later on in the agenda under item 13. The Executive queried whether the Council is provided with a report on the use of the funds received by the David Hughes Charity for the Poor which amounts to a quarter of any net surplus income from the David Hughes Charitable Estate (Endowment Fund). The Director of Function (Resources)/ Section 151 Officer clarified that the charity being unconnected to the Council reports directly to the Charities Commission and that the Council’s only role in connection with the charity is to distribute the apportioned funds to it.  ...  view the full minutes text for item 7