1

North Lanarkshire CouncilReport

Agenda item E l approval E noting Ref PH/PF Date 30/10/17

WAnnual i i i W ' 120161 17

From Head of Business for Financial Solutions

Email HughesPnorthlan.gov.uk Telephone 01698 302275

Executive Summary

This report provides the Lanarkshire Educational Trust Committee with a copy of the2016/17 audited Annual Accounts for the Lanarkshire Educational Trust Funds.

Recommendations

The Lanarkshire Educational Trust Committee is recommended to:

1. Note the contents of the audited 2016/17 Annual Accounts for theLanarkshire Educational Trust Funds.

Supporting Documents

Appendix I Annual Accounts 2016/17

a '

1. BackgroundThe Lanarkshire Educational Trust Funds were established as a result ofbequests from the public to enhance educational provision within Lanarkshire.

There is a legal requirement specified by the Office of the Scottish CharityRegulator (OSCR) for charitable trusts to prepare audited Annual Accountsand to submit the Annual Accounts to OSCR within 9 months of theirrespective period end date.

2. Report2.1 2016117 Annual Accounts

2.1.1 The 2016/17 Annual Accounts for the Lanarkshire Educational TrustFunds were prepared by Financial Solutions staff within NorthLanarkshire Council.

2.1.2 The audit of the Annual Accounts was undertaken by Audit Scotland.Audit Scotland have confirmed the Annual Accounts were prepared inaccordance with The Charities Accounts (Scotland) Regulations 2006,and have not raised any matters arising for the Trustees to consider.

2.1.3 The Annual Accounts are required to be submitted to OSCR by 31December 2017.

3. Implications

3.1 Financial ImpactThere are no financial impacts linked to this report.

3.2 HR/Policy/Legislative ImpactThere are no HR/Policy/Legislative impacts linked to this report.

3.3 Environmental ImpactThere are no environmental impacts linked to this report.

3.4 Risk ImpactThere are no significant risks linked to this report.

4. Measures of success4.1 Not applicable.

/Y�Paul HughesHead of Business for Financial Solutions

North Lanarkshire Council Educational EndowmentsSCO28079

Annual Accounts 2016/2017

Trustees' Annual Report

Charity name

Registered charity number

Other names charity isknown as

Charity's principal address

North Lanarkshire Council Educational Endowments

SCO28079

Education Trust Funds

North Lanarkshire Council

P0 Box 14

Civic Centre

[Civic Centre, Motherwell−

j Postcode MI−1 lAB

Names of the charity trustees on date of approval of Trustees' Annual Report

Head of Financial Services, NorthI P Hughes : Lanarkshire Council

2 J Logue NLC Elected Member

3 H McGuigan NLC Elected Member

4 T Morgan NLC Elected Member

5 E Lo anSouth Lanarkshire Council (SLC)

g Elected Member

6 ardhaugh SLC Elected Member

C SLC Elected MemberMcClymont

Administration On behalf of the Trustees, North Lanarkshire Councilj administer the fund but it does not represent assets availableI to the Council. The administration of the Educational

Endowments trust fund is covered by North LanarkshireCouncils financial regulations and policies.

Structure, governance and managementType of governing document Deed of Trust

Trustee recruitment and P Hughes, and the Educational Trust Committee, comprising 3appointment elected members from North Lanarkshire Council and 3

elected members from South Lanarkshire Council, act asTrustees for the charitable funds. During the year, theindividuals named above managed and administered the trustfunds.

Charitable purposes

Summary of the main activitiesin relation to these objects

The principal funds of the Lanarkshire Education Trust and theMarshall (Education) Trust were established to provideopportunities for educational advancement. The othereducational trust funds consist mainly of prize funds andbursaries for individual schools within the North Lanarkshirearea and are usually provided in the form of legacies of formerschool pupils or parents.

−.During the financial year 2016117, the Educational TrustCommittee awarded grants of £76330 in relation toeducational advancement. A breakdown of this total againsteach fund is included within the Educational Trust FundsAccounts.

Trustee Responsibilities The trustees are responsible for preparing the Trustees'Report and the financial statements in accordance withapplicable law.

The law applicable to charities in Scotland requires thetrustees to prepare financial statements for each financial yearwhich properly present the receipts and payments of thecharity and which have been properly prepared from and arein agreement with the accounting records of the charity andcomply with the relevant disclosure requirements.

The trustees are responsible for keeping proper accountingrecords that disclose with reasonable accuracy at any time thefinancial position of the charity and enable them to ensure thatthe financial statements comply with the Charities and TrusteeInvestment (Scotland) Act 2005, Charities Accounts (Scotland)Regulations 2006 and the provisions of the charity'sconstitution. They are also responsible for safeguarding theassets of the charity and hence for taking reasonable steps forthe prevention and detection of fraud and other irregularities.

The charity trustees have overall responsibility for ensuringthat there are appropriate systems of controls, financial andotherwise.. They are also responsible for providingreasonable assurance that:

• the charity is operating efficiently and effectively;• the charitable assets are safeguarded against

• unauthorised use or disposition;• proper records are maintained and financial

information used by the charity is reliable;• the charity complies with relevant laws and

regulations.

Financial review

Brief statement of the charity's i The level of financial reserve held by North Lanarkshirepolicy on reserves Council is reviewed annually during the budget setting process.

Investment Policy and PerformanceNorth Lanarkshire Council invests its trust funds in high earning investments (subject to the originalinvestment limitation parameters of the original bequest) or with North Lanarkshire Council's LoansFunds and earn interest accordingly. It is generally the case that the accumulation of income arisingfrom these funds will be distributed on an annual basis thus ensuring that resources are available tomeet their continuing requirements.

Risk ManagementThe administration of the trust fund is covered by North Lanarkshire Council's Risk ManagementPolicies.

Strategic PlansThe administration of the trust fund is covered by North Lanarkshire Council's Treasury ManagementStrategy in accordance with recognised Codes of Practice.

Control EnvironmentNorth Lanarkshire Council's systems of internal control are designed to provide reasonable, but notabsolute assurance against material misstatement or loss. in addition, North Lanarkshire Council'sInternal Audit Service which is an assurance function provides an independent and objective opinionon the adequacy and effectiveness of the Council's control environment. The audit fee for the yearhas been absorbed by North Lanarkshire Council within their annual audit fee.

Receipts and PaymentsThe Accounts have been prepared on a receipts and payments basis as the Charity's income is lessthan £250,000.

The trustees declare that they have approved the trustees' report above.

Signed on behalf of the charity's trustees

Signature

Full name

Position

Date

Paul Hughes

Head of Business for Financial Solutions

27th Sep tember2017

Section A Statement of receipts and payrri entsUnrestricted Restricted Expendable Permanent Total funds Total funds last

endowment endowmentfunds funds current period periodfunds funds

to nearest £ to flealost £ to nearest £ to nearest £ to nearest £ to nearest C

A l Recelots

Income from investments other thanland and buildings

Rents from land & buildingsGross receipts from other charitableactivities

A l Sub to

20,264 2 0 . 2 6 4 21,541

20,264 1

I

20,264 21.541

A2 Receipts from asset &Investment sales

PrGcoods from _sale of fixed assets

I Proceeds from sate 01 investments − − −A2 Sub total

Total receipts!

AS PaymentsE,penses for fundraising activities

Gross trading payments

Investment management costs

Payments relating directly to chanactivitiesGrants and donations

Governance costs: −

Audit / independent exanarPreparation 01 annual aco

Legal

Other − Mrrtin

Other − Debit Bale

Bank Clv

A3 Sub I

76,330

15,020

1,662

60

89,748

76,330

15.020

1,662

60

89,748

57.817

60

57,877

A4 Payments relating to asset andInvestment movementsPurchases of omd assets

Purchase of Investments

A4 Sub total

Totalpayments[

Net receipts /(paynnent4)j

AS Transfers t o ! (from) funds

Surplus / (deficit) f o r year

I I 89,748I I 57,877]

I I (69,484)!! (36,336)1

I IF II II −

(69,484) I I (36,336) I

North Lanarkshire Council Educational Endowments SCO28079Section B Statement of balances

Expendable Partnanent Total current Total lastUnrestricted Restricted funds endsoorwot period periodCatngonlcs D t o hind.ltsfcnds funds

1Otwa,00tC 10Otar5311 lofletoastt to newestC tonean,tt W000003ttB I Cash funds Cash and bank balances at start of year F

(69.484) (36,336)Sctptus# (dntitt) Shown Ott receipts

8 n ; 1

(69,484)

I I 1,024,6291

PC1nwOto acoonI

IiCash and bank balances988,293esat and Or− 918,809 −year

(Agree bakonoS stiSt tecelyfu and paynrtdsoccuusts))

82 investments

DetailsFund to 01905 .5005 b.IOag, MsuOat ,Oua{ors Low )na,

tOnearestE tortna015tt

3,861 3.552

38,952 33.744

79,939 68,443

84,168 64,784

48,998 39,994

196,498 159,962

96,192 74,016

223.547 187.225

38,267 30.334

859,222 662.034

Merchants Ttuo* Litrotud

Scoittoh Msodcon ktvestmont CO. Ltd.

Total

B3 Other assets

Debts Food to 01,iuft asont taboo, Cost iltualtablot C o t O t a l 7 Loot boa,

−

− −

−

t001atoSiC Ia 00a10516 tseo.tnutC

Total

Details

B4 Liabitittes

Details

05 Contingent liabilities

FoodtoWdcIrtI.b'Ofyrtlatos M,osordao Last)na,00 If fuorawoOC

Total

hard

501,6kb 11a161ty,atotos Last 5000to

Total

noarootE to ttnOtnotE

Ibo onaodtttd 0110055, wow issund on 18 tarot 2Ot7ond Urn audited accoSotoWorO oathn,lnd to, tsscndan 27Set,tnntbnr 2017

Stoned by otto on two tnsoteesan behalf at all the truotnes St8oature Print Name ate of

approval

P H E S _ _

__

C l Nature a n d p u r p o s e off u n d s (maybe slaled onanalysis o f fundsworksheets)

Type of activity or project supported

C2 G r a n t s Educational Advancement

Educational Advancement

Educational Advancement

Individual IinsIltutlon

Individual

OrganisatlonEducationalEstablishment

Nunter of grantsnude

M a T r u s t e e r e m u n e r a t i o n I T o remuneration was paid during the period to any charity trustee or person connected toa trustee cross this box (otherwise complete section 3b) X

C3b T r u s t e e remunera t i on −details

Authority under which paid

C4a T r u s t e e expenses [ h e q D e e s e s were paid to any charity trustee during the period then cross this box(otherwise complete section 4b) S

C 4 b T r u s t e e expenses −details

Nature o f relationship Nature o f transactionC5 T r a n s a c t i o n s witht rus tees a n d connected

personsC6

O t h e r i n f o r m a t i o n I − −

Nwuterof £trustees

x

Transaction Balanceanmunt (t) outstanding at

period end (E)x

rm'rTn&'flj

Analysis of receipts and payments

I DonationsExpendable PermanentUnrestricted Total current Total last

Restricted funds endowment endowmentfunds

f u n d s f u n d speriod periodSo

neorostt toneens i t tenoarestf te003restt toneaeest E to nearest c

Total H :Hi Hb h 1Total current Total last

yfre1toneareatCieneaTsU

3 Gross receipts from other charitable activities

Unrestrictedf d

Total current Total lastfunds

funds fundspeered period

to nearest C to neatest K to nearest £−

to nearest £ to nearest £ to nearest £

Total − − − − −

4 Payments relating directly to charitable activities

UnrestrictedExpendable Permanent

Total current Total lastRestricted funds endowment endowmentfunds

funds fundsperiod period

to nearest C is nearest E to nearest £ to nearest £ to nearest C to nearest £

Awards to iodrviduals and Other Net Costs 40035 40.035 51,332Awards toGroupslOmanisalions 1 , 5 0 0 550 6,465Awards to Educational Eslabllstvrtcnts

3 4 , 1 9 534.195

−

Total −− 76330 − 76.330 57,817

I GrantsUnrestricted

Restricted funds

toneurectC teenurertC

Total

5 Breakdown of unrestricted funds

o from investments other than land andfrom lard & buildings___________−reccipIsfrom other charitable aclivttws

.1

− • − . , r−− − − − − − − − − − − − − − − T o t a l

Totalunrestricted unrestricted

beds funds lostperiod

Receipts from asset & Investment solesProceeds tram Sale of fixed assetsProceeds from sale of Investments

Sub total −

Total receipts

Sub total

Payments relating to asset and investmentmovementsVurchas of fond assetsPurchase of Investments

− − Subtotal

Total payments

Net receipts /(payments)

Transfers to I (from) funds

Surplus/ (deficit) for year

North Lanarkshire Council Educational Endowments SCO28079

6 Breakdown o f res t r i c ted funds

Receipts

. ....

Lanarkshire Marshall Trust Other Total restricted Total restrictedEducational Lanarlssirlre Educational funds fund! last

Trust Trusts period

8.857rd buildings

Sub t o ta l 8,657

11.163 244

11,163 244

20,284 21.541

20,204 21,541

Receipts from asset & investment satesProceeds from sale of tued assets −Proceeds from sate of Invosaneels

− − − −Sub total

Total receipts r 6,8571 1 11.1631 1 2441 − j r 20.2041 J' 21,541

74,688 61,817

15,00560

6089,743 57,877

Purclsasas of t,ned annalssee of invoslmenle

Subtotal

Total paymen ts I 40.15511 68.85511. 1,09711

− L89.7481I 51,877 INet rece ip ts I ( p a y m e n t s ) I (31.333)11 (39,492)1 1

1,341 I L . . . IF (69.484)11 36.136) I

Trans fers t o t ( f r om) funds

Surp lus / ( ' de f l c l f ) f o r y e a r 1(31,33

1 (39,492)1 1 1,34111 . I (69.464)11 C36.3i1

Enpmises 105 lundraising activitiesGross trading paymentsIlveslarrent managcrrrent costsPayments relating directly Is charitable activities 32.630 43,155 − 1,097Grants and donations

Governance cuslsAudil /ndependent eurnninat/onPreparation of annual accounts

− Legal costsMndssbetiurs costs 7,500

Bark ChargesSub to ta l 40,190 50,655 − 1097

Payments relating to asset and Investmentmovements

Nature a n d p u r p o s e o f fundsThe pnniopal funds are the Lanarlrshlre Education Trust and the Marshal (EctUcatOfl) Trust wlrlclt were established under the Educational Endowments )(Sce6and) Acts 1928 10 153510 provide opportunities for educational advancement These lands are accessible In indiaidaals, groups or educational estabtisflrneets01 both North and South Lanartichee as−sd ora administered by the joint Educational Trust Contrnlltee.

Payments

Accounting Policies

Basis of accounting

The accounts have been prepared on a Receipts and Payments basis in accordance with therequirements of the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts(Scotland) Regulations 2006.

Resources expended

Charitable payments comprise those costs incurred by the charity in the delivery of its activities andservices for its beneficiaries.

Governance costs include those associated with meeting the constitutional and statutoryrequirements of the charity.

Audit FeeThe audit fee for the year has been absorbed by North Lanarkshire Council within their annual auditfee.

Independent auditor's report to the trustees of North Lanarkshire Council EducationalEndowments and the Accounts Commission

This report is made solely to the parties to whom it is addressed in accordance with Part Vii of theLocal Government (Scotland) Act 1973 and for no other purpose. in accordance with paragraph 120of the Code of Audit Practice approved by the Accounts Commission, I do not undertake to haveresponsibilities to members or officers, in their individual capacities, or to third parties.

Report on the audit of the financial statements

Opinion on financial statements

I certify that I have audited the financial statements in the annual accounts of North LanarkshireCouncil Educational Endowments for the year ended 31 March 2017 under Part VII of the LocalGovernment (Scotland) Act 1973 and section 44(1)(c) of the Charities and Trustee Investment(Scotland) Act 2005. The financial statements comprise the Statement of receipts and payments, theStatement of balances and Notes to the Accounts, including a summary of significant accountingpolicies. The financial reporting framework that has been applied in their preparation is applicable lawand a receipts and payments basis.

In my opinion the accompanying financial statements:• properly present the receipts and payments of the charity for the year ended 31 March 2017 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 2006.

Basis of opinion

I conducted my audit in accordance with applicable law and International Standards on Auditing in theUK and Ireland (ISAs (UK&l)). My responsibilities under those standards are further described in theAuditor's responsibilities for the audit of the financial statements section of my report. I amindependent of the charity in accordance with the ethical requirements that are relevant to my audit ofthe financial statements in the UK including the Financial Reporting Council's Ethical Standards forAuditors, and I have fulfilled my other ethical responsibilities in accordance with these requirements. Ibelieve that the audit evidence I have obtained is sufficient and appropriate to provide a basis for myopinion.

Responsibilities of the trustees for the financial statements

As explained more fully in the Trustee Responsibilities, the trustees are responsible for thepreparation of financial statements which properly present the receipts and payments of the charityand for such internal control as the trustees determine is necessary to enable the preparation offinancial statements that are free from material misstatement, whether due to fraud or error.

Auditor's responsibilities for the audit of the financial statements

My responsibility is to audit and express an opinion on the financial statements in accordance withapplicable legal requirements and lSAs (UK&I) as required by the Code of Audit Practice approved bythe Accounts Commission. Those standards require me to comply with the Financial ReportingCouncil's Ethical Standards for Auditors. An audit involves obtaining evidence about the amounts anddisclosures in the financial statements sufficient to give reasonable assurance that the financialstatements are free from material misstatement, whether caused by fraud or error. This includes anassessment of: whether the accounting policies are appropriate to the circumstances of the charityand have been consistently applied and adequately disclosed; the reasonableness of significantaccounting estimates made by the trustees; and the overall presentation of the financial statements.

My objectives are to achieve reasonable assurance about whether the financial statements as awhole are free from material misstatement, whether due to fraud or error, and to issue an auditor'sreport that includes my opinion. Reasonable assurance is a high level of assurance, but is not aguarantee that an audit conducted in accordance with ISAs (UK&l) will always detect a material

misstatement when it exists. Misstatements can arise from fraud or error and are considered materialif, individually or in the aggregate, they could reasonably be expected to influence the economicdecisions of users taken on the basis of these financial statements.

Other information in the annual accounts

The trustees are responsible for the other information in the annual accounts. The other informationcomprises the information other than the financial statements and my auditor's report thereon. Myopinion on the financial statements does not cover the other information and I do not express anyform of assurance conclusion thereon except on matters prescribed by the Accounts Commission orrequired by applicable law to the extent explicitly stated later in this report.

In connection with my audit of the financial statements in accordance with ISAs (UK&l), myresponsibility is to read all the financial and non−financial information in the annual accounts to identifymaterial inconsistencies with the audited financial statements and to identify any information that isapparently materially incorrect based on, or materially inconsistent with, the knowledge acquired byme in the course of performing the audit, If I become aware of any apparent material misstatementsor inconsistencies I consider the implications for my report.

Report on other requirements

Opinion on other prescribed matter

I am required by the Accounts Commission to express an opinion on the following matter. In myopinion, based on the work undertaken in the course of the audit the information given in the Trustees'Annual Report for the financial year for which the financial statements are prepared is consistent withthe financial statements and that report has been prepared in accordance with The CharitiesAccounts (Scotland) Regulations 2006.

Matters on which I am required to report by exception

I am required by The Charity Accounts (Scotland) Regulations 2006 to report to you if, in my opinion:• proper accounting records have not been kept; or• the financial statements are not in agreement with the accounting records; or• I have not received all the information and explanations I require for my audit.

I have nothing to report in respect of these matters.

GoL

Carole GrantSenior Audit ManagerAudit Scotland4th Floor, South SuiteThe Athenaeum Building8 Nelson Mandela PlaceGlasgow G2 1 BT

Carole Grant is eligible to act as an auditor in terms of Part VII of the Local Government (Scotland)Act 1973

Date: 2,7141 September 20172