TRUSTEES of a charity set up to help the poor have been warned that they are at risk of failing to meet their responsibilities over its "lack of charitable activity".

The Dr Bruce Fund, which was set up more than 200 years ago to help the poor in Musselburgh, is overseen by East Lothian Council, with ward councillors appointed as trustees.

But a report by Audit Scotland, which has criticised the council in the past for failing to promote the charity effectively, says that it is still not operating the way it should.

And it has announced plans to look into the progress of a review which the council first said it would carry out into all of the trusts in its care five years ago.

The Dr Bruce Fund itself has an estimated £20,000 in the bank but, between 2016 and 2021, it made only small awards to the same two individuals each year.

Last year, Audit Scotland said that the fund had paid out a total of £50 in 2016/17, going up to £60 the next two years and £70 the last two years.

And they said that the 2021 grants, which totalled £70 to the two individuals, were returned after the cheques were not cashed.

A report due to go to the council’s audit and governance committee next week setting out plans for the last financial year’s external audit says that focus will again be on the fund and the wider review.

It says: “The previously reported lack of charitable activity by the Dr Bruce Fund continues into 2022/23.

“There is a risk that the charity is not fulfilling its charitable objectives and that the trustees are not properly discharging their responsibilities.”

The Dr Bruce Fund is audited annually by the financial watchdog because it is a registered charity where members of East Lothian Council are sole trustees.

The fund was established by Charles Key Bruce, who studied in Musselburgh before making his fortune in East India. When he died, he bequeathed £2,000 to a permanent fund from which the interest was to be used to give poor relief to people in the town.

At its height, it was widely used in the town and was mentioned during 19th-century hearings into the Poor Law in Scotland.

In 2018, the council announced plans to review all 46 trusts it oversaw, with estimated assets of over £3.5 million; however, to date no actions have been made public.

Last year, the council said that it had appointed a staff member to progress the review and anticipated recommendations being brought forward this year in response to Audit Scotland’s call for action.

Now, the financial body says that it will include the review in this year’s audit, saying: “We will review progress of the planned review of trusts (covering Dr Bruce and other trusts which are not registered charities), which was set out as an improvement action in the 2021/22 annual audit report action plan.”