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TRUST COMMITTEE

 

Minutes of a meeting held on 30th September, 2013.

 

Present:  Councillor F.T. Johnson (Chairman); Councillor H.C. Hamilton (Vice-Chairman) and Councillor N.P. Hodges.

 

In attendance for Agenda Item No. 4: Mr. C. Johnson, Bluefin (Independent Financial Advisor).

 

 

429     APOLOGY FOR ABSENCE – 

 

This was received from Councillor K.P. Mahoney.

 

           

430     MINUTES – 

 

RESOLVED – T H AT the minutes of the meeting held on 22nd July, 2013 be approved as a correct record.

 

 

431     DECLARATIONS OF INTEREST –

 

No declarations were received.

 

 

432     THE INVESTMENT SOLUTION – PRESENTATION BY MR. C. JOHNSON, INDEPENDENT FINANCIAL ADVISOR, BLUEFIN –

 

Mr. C. Johnson outlined Bluefin’s investment philosophy insofar as the Cowbridge Comprehensive School Trust was concerned, i.e.

  • stay invested for the long term
  • do not try to time markets
  • diversify away stock specific risk
  • diversify market risk by using a range of uncorrelated Asset Classes
  • match the investment portfolio with the tolerance to investment risk
  • keep the portfolio costs low.

Committee were advised that the Trust’s investments were included within Risk Group 4, and the Asset Allocation for this Group was shown to the Committee. 

 

Mr. C. Johnson advised that the advantages of this risk group included:

  • significant global diversification across a range of Asset Classes
  • highly liquid portfolios
  • low cost.

Mr. C. Johnson advised members of the Committee that, in the near future, Bluefin was going to be taken over by a company called Towry.  Whilst the name of the company may change in time, Mr. Johnson assured Members of the Committee that the ethos of Bluefin would remain the same.

 

In observing that Bluefin’s fees and charges seemed competitive, Members enquired if the rate would change when Bluefin had been taken over by Towry and were advised that the rates would stay the same or possibly even reduce. 

 

Following the conclusion of the presentation, it was

 

RESOLVED – T H A T the presentation be noted and that Mr. C. Johnson be thanked for his efforts.

 

Reason for decision

 

Having regard to the contents of the presentation.

 

 

433     COSTS ASSOCIATED WITH THE FORMER COWBRIDGE SIXTH FORM SITE, ABERTHIN ROAD (MD) –

 

Committee received an update on costs incurred by the Council in securing the Sixth Form Site since the land and buildings were handed back by the school in September 2010, and were asked to agree arrangements for future costs incurred on the site.

 

An analysis of expenditure incurred to date was shown at Appendix A to the report. 

 

Members of the Committee were reminded that the Trust Committee of 22nd July received a report which advised Trustees that the Former Sixth Form Site was subject to terms of a 1912 scheme.  Committee resolved that an application be made in the future to the Charity Commission to obtain approval to the terms of a new scheme enabling the disposal of the land and application of resulting proceeds of sale.

 

There would be a timing difference between costs of sale and receipt of the sale proceeds which would be used to fund them.  This would result in a cash flow problem for the Trust, as the Trust only had a land and building asset.

 

In addition, Trust Committee had recommended that approval for expenditure incurred following the meeting of 22nd July 2013 be delegated to the Head of Accounting and Resource Management in consultation with the Chair of the Trust Committee.

 

The Council now proposed that costs associated with securing the Former Cowbridge Sixth Form Site and other expenditure incurred prior to the report on 22nd July would be met by the Council in full. 

 

Costs of sale and for securing the site incurred following the report of 22nd July, with the agreement of the Chair of the Trust Committee would be initially paid by the Council.  These amounts were to be fully reimbursed in due course to the Council.  There would be a liability in the Trust accounts and a corresponding debtor in the Vale of Glamorgan’s accounts.  This arrangement would be reviewed in 12 months time.

 

The Council did not propose to recharge the costs for either insurance of the site which had been paid by the Council or for the Council’s management of the site to the Trust. 

 

As the initial costs of securing the site had been met by the Council, future costs that could be incurred by the Trust were likely to be associated with securing the site following a break in, and costs associated with the disposal of the site. 

 

Should the Council’s proposals be not accepted, the Trust would need to arrange to borrow monies to arrange its cash flow, until such time as the proceeds of sale were received.

 

Having considered the contents of the report, it was

 

RESOLVED –

 

(1)       T H A T the expenditure incurred on the Former Sixth Form Site by the Council be noted.

 

(2)       T H A T the Council’s proposals for the Council to pay in full those costs which were incurred by it prior to 22nd July 2013 be agreed.

 

(3)       T H A T the Council’s proposal to initially discharge all future costs incurred after 22nd July 2013 on the Former Sixth Form Site, as agreed by the Chair of the Trust, be accepted and that the Council be reimbursed in full in due course.

 

Reasons for decisions

 

(1)       To ensure that Trustees are aware of the costs incurred by the Council in securing the site to date.

 

(2)       To ensure that Trustees are aware of the funding arrangements for the costs incurred to date.

 

(3)       To ensure that the Trust is able to manage its financial position until sufficient funds are received.

 

 

434     ANNUAL REPORT AND ACCOUNTS 2012/13 COWBRIDGE COMPREHENSIVE SCHOOL TRUST (MD) –

 

Committee were advised that the Charities Act 2011, Section 162 and Regulations require the Trustees to prepare and consider an Annual Report and Accounts in respect of the Trust. 

 

The Annual Report and Accounts for the year 2012/13 were set out at Appendix A to the report. 

 

The document would be forwarded to the Councils’ external auditors, Grant Thornton UK LLP, to be signed following the independent examination.

 

Having considered the Annual Report and Accounts 2012/13, it was

 

RESOLVED – T H A T the Annual Report and Accounts 2012/13 as set out in Appendix A to the report be approved and that the Chair be authorised to sign the same on behalf of the Trustees.

 

Reason for decision

 

In accordance with the requirements of Section 162 of the Charities Act 2011, and the Charity (Accounts and Reports) Regulations 2008.

 

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