Issue - meetings

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

It was resolved –

·      To approve the Draft Annual Report and Accounts for the Anglesey Further Education Trust for the year 2023/24. (Appendix A to the report).

·      To delegate to the Director of Function (Resources)/Section 151 Officer the authority to sign the Final Annual Report and Accounts and file with the Charity Commission upon satisfactory completion of the audit.

·      To authorise the Director of Function (Resources)/Section 151 Officer to commission an external review of the operation and investment options in respect of both Trusts.

The report of the Director  of Function (Resources)/Section 151 Officer incorporating the David Hughes Chartable Estate and Anglesey Further Education Trust Annual Report  and Accounts for 2023/24 was presented for the Executive’s consideration. It is a requirement of the Charity Commission that the annual accounts are approved by the Executive as the Trusts’ responsible body.

Councillor Robin Williams, Deputy Leader and Portfolio Member for Finance and Housing presented the report outlining the background of the Anglesey Further Education Trust, its legal status and the different elements within it. The report also provides a summary of the Trust’s financial performance in 2023/24 and updates members on the progress made to distribute more of the Trust’s funds to meet the charitable purposes of the Trust. In October 2019 the Executive determined to allocate a one-off sum of £55,280 to each secondary school, funded from the  Anglesey Further Education 1/3 Restricted Trust Fund, to cover the cost of  Learning Coaches. The Executive also approved an allocation of an additional £8,000 per secondary school to provide grants for financially disadvantaged students. The grants were to help students obtain places at colleges and universities and/or purchase books and equipment required for their first year of courses. The total cost of £40,000 was funded by the Anglesey Further Education 2/3 Restricted Trust Fund. Section 5 of the report details how schools utilised these funds in 2023/24.

Councillor Robin Williams highlighted the reliance of the Further Education Trust Fund on the David Hughes Charitable Estate to generate surpluses which are subsequently transferred to the Further Education Trust Fund. While the return on the traded investments is good the performance of the Charitable estate’s investment properties is very poor, showing negative  returns in 2022/23 and 2023/24. This is because of restrictive tenancy agreements that have hindered rents from increasing significantly over time coupled with rising maintenance costs due to the deteriorating condition of the properties. As a result,  the David Hughes Charitable Estate has failed to make a contribution to the Anglesey Further Education Trust in the past two years having generated no surplus. This means that the Trust has not been able to provide support to the current and former pupils of the Council’s five secondary schools which is its primary purpose. Without a change in strategy in relation to the David Hughes Charitable estate this situation is likely to persist. This challenge was previously identified in March 2024 when the Executive authorised Officers to examine options to maximise income from the estate to safeguard the long-term viability of the Anglesey Further Education Trust Fund for the benefit of Anglesey’s young people. However, due to capacity issues, no progress has been made in implementing this recommendation. The Executive is now asked to authorise the commissioning of external assistance to conduct the necessary review.

The Director of Function (Resources)/Section 151 Officer confirmed that the David Hughes Charitable Estate investment properties are not generating sufficient income to cover day to day repair costs or produce a surplus. A point  ...  view the full minutes text for item 6