Agenda item

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

Officer.

The report of the Director of Function (Resources)/Section 151 Officer incorporating the David Hughes Charitable Estate and Anglesey Further Education Trust Annual Report and Accounts for 2022/23 was presented for the Executive’s consideration.

The report was presented by Councillor Robin Williams, Deputy Leader and Portfolio Member for Finance who provided an overview of the background of the Anglesey Further Education Trust and the three funds within it, namely the David Hughes Endowment, the Anglesey Further Education Fund 1/3 and the Anglesey Education Trust Fund 2/3 which provide specific educational benefit for young persons who attend or have attended the Island’s secondary schools. He referred to the funding allocated to the secondary schools by the Executive in October 2019 and how this has been utilised by the schools during 2022/23 as described in sections 5 and 6 of the report. As the David Hughes Charitable Estate did not generate a surplus in 2022/23 no funding was available to be transferred to the Trust in that year and so no allocation was made to the schools. Work is being done to ensure that optimum use is made of the Anglesey Further Education Trust and that it remains fit for purpose.

The Director of Function (Resources)/Section 151 Officer advised that the accounts for 2022/23 show that the costs of running the estate exceeded the rental income from the estate’s smallholding properties meaning that there was no surplus income available to be distributed to the Anglesey Further Education Trust in 2022/23. Although the value of the estate comprising of its smallholdings and other investments altogether at approximately £4.88m has increased, the net income has not and if this situation persists, consideration will have to be given to ways of maximising the income from the estate to ensure that funds can continue to be distributed to the Further Education Trust otherwise there is a risk that the Trust will cease to exist along with the benefit to Anglesey’s secondary schools and their pupils.

In light of the advice provided about the income situation of the estate, the Chair proposed and it was agreed, that the Executive makes a specific recommendation to authorise the Section 151 Officer to proceed to investigate options for increasing income generation by the David Hughes charitable estate in order to ensure the long-term viability of the Further Education Trust so that Anglesey’s young people can continue to derive an educational benefit from it. The Executive would be provided with a further report on the options identified in order to determine a way forward mindful of the needs of the estate’s smallholding tenants as well as those of Anglesey’s young people.

It was resolved –

·      To approve the Draft Annual Report and Accounts for the Anglesey Further Education Trust for the Year 2022/23 as set out in 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 delegate authority to the Director of Function (Resources)/Section 151 Officer in consultation with the Head of Highways, Waste and Property to examine options for maximising income from the David Hughes Charitable Estate in order to safeguard the long-term viability of the Anglesey Further Education Fund for the benefit of Anglesey’s young people. A further report will be submitted to the Executive to determine which option to follow.