Agenda item

To present the Budget for 2014/15. (To Follow)

A report setting out the provisional out-turn for 2013/14 along with recommended funding allocations for 2014/5 was presented for the Trustees’ consideration.

The Acting Accountancy Services Manager reported that the projected out-turn as updated and summarised in the table at 2.5 of the report shows that as at 31 March, 2014 the Trust’s revenue reserves stand at £210k in surplus from which position the 2014/15 and 2015/16 out-turns can be projected based upon an estimated 3% growth on the income invested. Consequently it is envisaged that £471k will be available for spending in 2014/15 and £484k in 2015/16.

The budget for 3014/15 as reflected in the written report proposes the following –

·           200K allocation to Oriel Ynys Môn in line with the reduced funding strategy for the Oriel adopted as part of the 2013/14 budget setting process.

The Acting Accountancy Services Manager said that following discussions with Mr Hywel Eifion Jones and in light of the financial position of the Oriel it is recommended that the allocation be adjusted upwards to £215k or £220k.

·           £66k allocation to village halls.

The Acting Accountancy Services Manager said that following discussions it is recommended that this be adjusted upwards to £80k

·        £50k allocation to community facilities and for minor grants

The Acting Accountancy Services Manager said that following discussions it is recommended that the £50k allocation be retained but that the level of each individual grant be adjusted upwards from £6k to £10k per annum.

The Secretary said that the decision to adopt a strategy of reduced funding for Oriel Ynys Môn was taken in part to create a clear distinction between a Council provision and the responsibilities of the Trust as a charitable entity. Oriel Ynys Môn is at present experiencing some difficulties in meeting

its income targets and is at risk of overspending. Mr Hywel Eifion Jones is proposing deviating from the strategy for this year to allow for an increased allocation to be made to the Oriel. However, the Trust must come to a decision on the level of funding to the Oriel independently of the Council’s perspective.

With regard to the proposed allocation for community facilities and minor grants the Secretary informed the Trustees that the total sum of all the applications received by the 9th May deadline (before they have been sifted for compliance with the Trust’s funding criteria) is estimated to be

£137k which is far in excess of the £50k recommended budget to be delegated to the General Grants Committee for this purpose. In addition, other applications for funding have been received or are in the offing including applications from the Anglesey Young Farmers’ Movement and Urdd

Gobaith Cymru which are under consideration at today’s meeting. However spending outside the budget parameters means making use of the Trust’s capital of £18m which the trustees can do if they so wish. As trustees, Members need to bear in mind also that the value of the fund can

decrease as well as increase depending on the market’s performance.

Members of the Trust considered the information presented and indicated that they were minded to increase the budget allocation for community facilities in recognition of the community need for funding and because the articles state that “the Trustees may at any time or times at their discretion pay or apply the whole or any part or parts of the capital of the Trust fund in promotion of

the charitable purposes in such manner as the Trustees think fit.” It was also pointed out that after the sifting process has taken place the value of the applications received may well decrease as those that do not meet the funding criteria are disregarded.

Mr Kenneth Hughes wished it be noted that having regard to the regulations governing the Trust and notwithstanding his support for Oriel Ynys Môn, he was uncomfortable with utilising the Trust’s funds to support the Oriel as he believed that this was contrary to the regulations.

Mr Alun Mummery proposed that the General Grants Committee be authorised to approve all the grant applications that comply with the Trust’s funding criteria making it clear that that this would be without prejudice to any future determinations and that part of the trust’s capital fund be utilised

to this end should that be necessary. His proposal was seconded by Mr Lewis Davies.

The Interim Head of Function (Resources) & Section 151 Officer advised that good financial management means setting a budget and then endeavouring to adhere to it. If the General Grants Committee is unable to comply with the budget allocated then it should report on the situation to the Trust and seek approval for any additional spend. If Members of the Trust are minded to

approve the applications received in their totality, then he suggested that consideration be given to adjusting the 2014/15 budget to £137k to enable the General Grants Committee to accommodate all the requests if it so chooses. As regards setting a precedent for future years, despite the inclusion of a proviso, such a step does set a precedent.

Mr Aled Morris Jones proposed an amendment that the allocation for community facilities and minor grants be increased to £100k only for 2014/15 on the basis that the position of the Trust fund is healthy at this point in time and allows for the increase to be made. His proposal was seconded by Mr W.T.Hughes. Following a vote on the matter the original proposal made by Mr Alun Mummery was carried.

In relation to Oriel Ynys Môn, the majority of the Trust’s members were in agreement that the allocation should be increased to £215k in 2014/15 on account of the difficulties which the Oriel is experiencing in fulfilling income targets, but they emphasised that further consideration should be given to the Oriel Ynys Môn funding arrangement with a view to resolving the issues arising and to reverting next year to the reduced funding strategy.

Following a full discussion it was resolved –

·           To adopt a budget for 2014/15 as follows:

·        Oriel Ynys Môn £215k (Mr Kenneth Hughes voted against this proposal for the reason given)

·        Village Halls £80k

·        Community Facilities and Minor grants – see below

·        With regard to community facilities and minor grants, to authorise the General Grants Committee to approve all those applications received by the deadline that comply with the Trust’s funding criteria without prejudice to any determinations in future years and that part of the capital fund be utilised for this purpose should that be necessary.

·        To return to the financial strategy and Oriel Ynys Môn funding arrangement at a later date in the year.