Portsmouth Hospitals Charity Annual and Acc 2,021-2022 eport nts ## **Contents** ## **“** Once again, the financial year ending in March 2022 was not as we may have expected. However, despite challenges, we managed to exceed our previous year’s income by over £300,000. Our increase in income is many thanks to generous supporters leaving gifts in wills as well as grants from NHS Charities Together. Thanks to these donations we have funded incredible projects to benefit patients and continued to provide ‘boosts’ for staff. One of the things that makes me most proud to be part of the charity is that we fund projects for every stage of life, during those crucial first days of life, through the tough times and then later on in life. This is only possible thanks to our supporters, thank you so much. ## **Kate Sandys Head of Charity** **04 06 08** Foreward from Our year in Trustees the Chair numbers annual report **10 12** Your support in action – Enhancing patient care of life and staff wellbeing **12** There for you at every stage of life **14 18 22** Inside the Our supporters Financial review Hospital **16 40** And in the community Charity information **2** | porthosp.nhs.uk/charity porthosp.nhs.uk/charity | **3** ## **“** ## **Message from the Chair** It is heart-warming to read the stories which often accompany donations, and hear the thanks that patients and families wish to pass onto staff. Without you, none of our work is possible. ## **I am delighted to introduce to you the Annual Report and the Audited Financial Statements for Portsmouth Hospitals Charity for the year ended 31 March 2022.** I think we can all acknowledge that 2021/22 didn’t see the return to ‘normal’ that we had all expected and hoped for. Ongoing restrictions and uncertainty made planning fundraising activities difficult. However, despite this, the income received by the Charity was £1,225,000, an increase of over £300,000 on the previous year. I’d like to personally thank NHS Charities Together for their ongoing support and also to those people who are sadly no longer with us but wanted to leave a generous legacy to the Charity. These gifts continue to make a difference to the organisation. One such legacy has supported the Charity to bring in an activities coordinator for Older Peoples Medicine. This role has been excellent in enhancing the level of care the Trust can provide for patients, particularly those suffering with dementia. This extra socialisation is valued not just by the patient, but also by their families who know their loved one is receiving extra care. You can read more about this role on page 10. The Charity has also continued to fund equipment purchases for the hospital to enhance care. One such example is a Thera-trainer bike. This is a specialist bike used to build the strength and cardiovascular fitness of our patients in the cancer care inpatient ward. Last year we were also pleased to be the beneficiary of a grant to continue to support our patients when they return home from the hospital. By working with our colleagues in the Red Cross, we were able to refer vulnerable patients to their ‘settling at home project’. This project supports patients transition back into the **Melloney Poole OBE** Chair of Charity Board of Trustees community, aiming to support their physical and mental independence following a stay in hospital. We were also delighted to fund items for a new chemotherapy unit at Fareham Community Hospital which opened in May 2022. You can read more about this work in the community on page 16. As we plan for the future, I was very excited to finally reopen the Charity shop in its new home on C-level within Queen Alexandra Hospital. The Charity also held its first large face-to-face fundraising event in over two years in May, raising funds across the hospital. I look forward to many more events in the coming year! Finally, I wanted to say thank you again to all of those who have supported the Charity over this time. It is heart-warming to read the stories which often accompany donations, and hear the thanks that patients and families wish to pass onto staff. Without you, none of our work is possible. With best wishes as always, Melloney Poole OBE **4** | porthosp.nhs.uk/charity porthosp.nhs.uk/charity | **5** ## Income **Donations £184,000** **Legacies £598,000** **Other trading activities £153,000** **Charitable activities (including grants received) £266,000 Investment income £24,000** Expenditure **Contributions to NHS** **(grants paid) £349,000** **INCLUDING:** **Paediatrics £44,000 Radiotherapy £41,000 Renal £39,000** **Medicine for Older People £22,000** **Patient welfare and amenity £62,000** **Staff welfare and amenity £77,000** porthosp.nhs.uk/charity | **7** ## **Trustees Annual Report** ## **Foreword** Welcome to the Annual Report and Accounts for Portsmouth Hospitals Charity for the year ended 31st March 2022. The Accounts have been prepared by the Trustee in accordance with the accounting policies set out in Note 1 to the Accounts and comply with applicable law including the Charities Act 2011 and the Statement of Recommended Practice applicable to charities preparing their accounts, and in accordance with the Financial Reporting Standard applicable in the UK (FRS102). Portsmouth Hospitals Charity aims to support the vision of the Trust. The Charity does this by raising charitable funds to enable the purchase of additional equipment and facilities. In providing charitable grants to the Trust and partners, the Charity plays an integral part in providing extra funding for equipment and facilities, research and innovation, the development of services and education for patients and staff – all enabling excellence in care provision for the patient and communities served by the Trust. ## **Key Objectives** The Trustee has five key objectives for the management of the Charity towards achieving its aims: ## **1. Stewardship of Charitable Funds** This includes ensuring sound governance and financial management of the Charity. Annual accounts should be returned to the Charity Commission on time and receive an unqualified audit report. Investment performance should be regularly reviewed and charity reserves should be appropriate to the level of annual expenditure. All expenditure by the Charity should support the aims of Portsmouth Hospitals University NHS Trust and its partners. **Outcome:** Objective achieved as we continued to strengthen existing processes and procedures, such as requiring divisional director oversight of all bids over £5,000. Annual accounts filed in a timely manner once audited and expenditure and reserves reviewed. All expenditure supports the aims of Portsmouth Hospitals University NHS Trust. ## **2. Provision of additional facilities and equipment** The Charity aims to commit at least 50% of total annual income towards this objective **Outcome:** In this year, 40% of total annual income was spent on the provision of facilities and equipment. Charitable expenditure in the year was slower than other years due to the pressure on staff and ability to deliver on charitable spend. However, towards the end of the year the number and value of applications had increased, to be reflected in 2022/23 figures. ## **4. Assisting Portsmouth Hospitals University NHS Trust with its planned developments** ## **3. Support and encouragement of research and innovation** The Charity aims to commit at least 5% of total annual income towards research and service development expenditure. In addition to engaging with the Trust to develop a shared case for support, the Charity will commit its unallocated reserves to support any developments, where appropriate. **Outcome:** This objective was not developments, where appropriate. achieved as no funds were spent on research. This is partly due **Outcome:** The Charity continues to restrictions and challenges in to work with the Trust to support setting up face to face research developments. At present, with patients. All of the research unallocated reserves help to fund funds have been contacted Trust wide activities such as the regarding spending plans for the Pride of Portsmouth Awards, our next year to increase our research Radio Licence and hospital WiFi. spend. The Charity is also now using part of the unallocated reserves to fund the core costs and development of the Charity in order to spend effectively and fundraise into the future. ## **5. Maximising the Charity’s fundraising potential** **Funds are held for any charitable fund purpose or purposes relating to the services provided by Portsmouth Hospitals University NHS Trust.** The Charity will invest in fundraising to proactively seek new income and set realistic fundraising targets. **Outcome:** Despite the challenges of COVID-19, this objective was achieved by maximising on grant income opportunities via NHS Charities Together. We increased our unrestricted income and invested in a new online donation platform to make it easier to give to the charity. **8** | porthosp.nhs.uk/charity porthosp.nhs.uk/charity | **9** **Your support in action – enhancing patient care and supporting staff wellbeing** **Throughout 2021-22, your generous donations allowed us to fund a wide range of projects that enhance patient care and support staff wellbeing across the Trust.** ## **Thera-trainer bike** ## **Meet Emma** **“I receive very postitive feedback from patients, and most say it’s been lovely having someone to chat to. I help to lift their mood and improve their confidence, especially with activities they thought they could no longer do.** **“Since using it, my mobility has improved, and I am feeling much stronger”** Emma started her role as activities coordinator in Older Peoples Medicine in the summer of 2021, thanks to a generous legacy donation into the charity. The words of a patient who has seen the benefits from using a new Thera Trainer Bike at QA Hospital. She supports patients with dementia through therapeutic engagement and meaningful activities that benefit both the body and mind. Activities typically include gardening, card making and painting stones, depending on the patients interests. **“For the relatives of patients that I have spoken to, they have been very thankful knowing their loved ones are getting extra socialisation.” - Emma** This inclusive specialist exercise bike allows majority of patients on the cancer care inpatient unit to build on their strength and cardiovascular fitness. It can be used from all types of seating including specialist seating, wheelchairs, and standard armchairs. **Watch a typical ‘day in Emma’s role’ by scanning the QR code.** Left: Thera-trainer bike Top right: Hot chocolate for staff Bottom centre: Secret Santa Appeal Bottom right: Emma Chewter ## **Christmas presents** ## **Seasonal treats for staff** Being in Hospital can be difficult at any time, but especially at Christmas. With the help of your donations towards our Christmas appeal we were able to turn Christmas into a positive experience for our patients. On a hot day in summer 2021, we helped staff to cool down by funding an ice-cream van to be on site at Queen Alexandra Hospital. Rosie Chilvers spent Christmas day in hospital with her son, Harry. **She said: “Although it wasn’t exactly the first Christmas we had planned for Harry and our family by being in hospital, it was made much more bearable by waking up on Christmas morning to see the incredibly thoughtful gift from the Portsmouth Hospitals Charity Christmas appeal.”** The overwhelming positive response from staff encouraged us to follow suit in the winter months by funding a hot chocolate van. The appeal was created with the hope that all inpatients would wake up to a present on Christmas day. One staff member tweeted: **“Delicious surprise hot chocolate this morning. Thank you so much to Portsmouth Hospitals Charity and the Really Awesome Coffee team - just what was needed on a freezing December morning!”** With over £4,000 raised for the appeal, we were able to give patients at QA Hospital a small gift bag which included a card, toiletry set and a piece of cake. **10** | porthosp.nhs.uk/charity porthosp.nhs.uk/charity | **11** ## **There for you at every stage of life** ## **Your first days** Based in our Neonatal Intensive Care unit, Fabian machines are superior in delivering continuous positive airway pressure to premature babies and reduce the risk of them developing chronic lung disease. It also helps make the baby become more accessible to the parent and enables bonding with their child. We were grateful recipients of a donation from Ickle Pickles to provide the team with an additional machine. ## **Through the tough times** Frozen gloves and slippers that have been proven to reduce the side effects for those receiving Taxol chemotherapy, are now being offered to patients with ovarian cancer at Portsmouth Hospitals University NHS Trust. Patients receiving Taxol chemotherapy can experience irreversible side effects of numbness in their hands and feet. This can make everyday tasks such as doing up buttons, finding change and playing musical instruments difficult. Feedback from patients suggests that the feet are more problematic as it can feel like they’re walking on uneven ground, affecting their balance. ## **Protecting you in your later years** For vulnerable patients in hospital, a fall could be fatal. To reduce those risks, we funded 100 pairs of slippers for patients to use in hospital, or to protect them back in their own home. **“Being able to give appropriate footwear to patients who need it can enable them to keep moving and help prevent falls. Deconditioning and falls can be life changing for some patients, so being able to provide good footwear is a fantastic way of helping to keep some of our most vulnerable patients safe and well.” - Hayley, Senior Physiotherapist.** Generous donations and fundraising events have allowed the department to purchase 22 pairs of gloves and slippers. Previously, patients have had the option of purchasing these privately, but they can often un-freeze by the time they arrive at the hospital. Left: Fabian Machine Right: Slippers ## **“** I used cold socks during recent treatment to prevent further damage to the nerves in my feet from previous chemotherapy. Doing so has helped me to continue to do the things I love, such as walks in the countryside, gardening and driving. It’s wonderful that many other people can now be helped to avoid the worst effects of treatment on the nerves of their hands and feet. Stephanie Cussen - pictured right **----- Start of picture text -----**
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**12** | porthosp.nhs.uk/charity **----- Start of picture text -----**
Inside QA
Hospital..
A visit to our Emergency Department can be a daunting
experience for anyone, but especially for our younger
patients. To help with this, we fund a range of items that
make hospital, feel less like a hospital.
Sensory items play a big part in creating a calming
environment for children and previous items have proven to
be very popular amongst patients and their families. This year
we added more sensory items by funding a new portable
projector.
The projector helps to calm children, and their parents, in
what may be a stressful situation. The portable element
allows it to be accessible for more children, especially those
who are non-mobile, as it can be placed next to their bed.
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## **In Critical Care** **Thanks to a generous donation made in memory of a loved one that passed away, lightboxes have been installed on walls and ceilings around the Intensive Care Unit. This helps to offer a calm and relaxing environment for patients, their families and the staff.** ## “ Some patients are awake when they arrive on the Intensive Care Unit and lying on your bed knowing you are going to Intensive Care can be a very scary time. Now, instead of staring at grey ceiling tiles as they come down the clinical corridor, patients see images of the sky, clouds and blossom above them. This helps to create a calming corridor as they arrive. We have also placed picture light boxes in other places around the Intensive Care Unit. Each showing a beautiful or interesting scene which will calm and distract patients and visitors. Taking them to places such a woodland, a field of lavender or even the Spinnaker tower. ## **Dr Sara Blakeley BM FRCP EDIC** ## Clinical Director Critical Care Consultant in Intensive Care Medicine porthosp.nhs.uk/charity | **15** ## **and in the community** Pictured above: Fareham Community Centre ## **Fareham Community Hospital** ## **Settling at home scheme** **May 2022 saw a new chemotherapy unit opening at Fareham Community Hospital.** **In partnership with the British Red Cross, we’re proud to have commenced our ‘settling at home’ scheme in 2021.** With the demand on cancer services growing year on year and more patients needing treatment at Queen Alexandra Hospital, the new ten-station unit will help ease those pressures by offering additional capacity. The scheme supports patients in their transition from hospital to their homes and communities following discharge. The service previously existed for the residents of Portsmouth but thanks to funding from NHS Charities Together, via Southampton Hospitals Charity, we are able to expand to patients across Fareham, Gosport, Hayling Island and Waterlooville. We’re proud to have supported the project by funding various enhancements across the unit. Over £27,000 worth of items, including reclining chairs, a blood fridge and artwork were purchased to transform the unit into a modern, welcoming environment. The core purpose of the service is to support reenablement back into the community, prevent social isolation and reduce re-admissions into hospital. It also aims to help patients regain physical and mental independence following a stay in hospital, helping put support mechanisms and resilience in place. **Maria Pittman, senior sister in cancer services, said: “I just wanted to say a big thank you for the donations we have received to allow us to buy some of the extra equipment that will help us to go above and beyond for our patients. They will make a big difference, thank you.”** **----- Start of picture text -----**
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**16** | porthosp.nhs.uk/charity ## **Thanks for your support!** **We want to thank everyone who gave to Portsmouth Hospitals Charity last year, whether it be financially, with gifts in kind, or with your time. We can’t thank you enough. We can’t mention everyone, but we are so grateful to everyone who gave us their support.** ## **Trusts and Grants** ## **Corporate** The Ickle Pickles Children Charity NHS Charities Together The Grace Trust Wessex Cancer Trust The Arnold Clark Community Foundation Asda Believe and Achieve Events Churchers Solicitors Equans Express FM Bedhampton Charitable Trust Hampshire and Isle of Wight Community Foundation Garsons Genta Medical Irwin Mitchell Jude’s ice cream Lead Forensics Logjam Solutions Limited Meridian Shopping Centre Morrisons OGC Splash Portsdown Group Practice Qiagen Ltd Royale Group Management Solent Sky Services Southern Co-op Star Refining ## **Community Groups** Portsmouth & District Womans Bowling Association Priory School Royal Antediluvian Order of Buffaloes (RAOB) Rowner Cricket Club The Lodge of Harmony The Worshipful Company of Glovers Connaught Club Fine Voice Academy Haslar Bosom Buddies Horndean Lodge of Harmony Karwan Lodge Langstone Junior Academy Langstone Village Association Pompey Pluckers Tesco Vespasian Security Waitrose Wave 105 Winchester Police Thank you to the 22 generous supporters who kindly left a gift in their will which we received in 2021-22, totalling an incredible £598,109. These gifts are so special and crucial in enabling the Charity to continue to support enhancements for patients and staff wellbeing. **----- Start of picture text -----**
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**18** | porthosp.nhs.uk/charity **FINANCIAL REVIEW** **----- Start of picture text -----**
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**Financial review ANNUAL ACCOUNTS 2021/22** porthosp.nhs.uk/charity | **21** **FINANCIAL REVIEW** **FINANCIAL REVIEW** ## **Finance Review** The net assets of the Charitable Funds as at the 31st March 2022, were £3,288,000 (31 March 2021 £2,719,000). Overall net assets increased by £569,000 The Ring-Fenced Fund of £25,000 to purchase a piece of equipment remains unspent. An additional donation of £28,000 has been restricted for the purchase of equipment which also remains unspent. The General (Unrestricted) Fund increased by £217,000 to £503,000, the designated funds increased by £324,000 to £2,732,000, the restricted fund increased by £28,000 to £53,000 During 2021/22, the Charity received a total income of £1,225,000, an increase of approximately 33% on the previous year. Trading and event income has increased following the relaxation of COVID-19 regulations. Additional grants were received from NHS Charities, and legacy income increased in 2021/22. |**Income source**|**2021/22**||**2020/21**|| |---|---|---|---|---| ||**£’000**|**%**|**£’000**|**%**| |Donations|184|15|269|29| |Legacies|598|49|328|36| |Charitable activities (including grants received)|266|22|192|21| |Other trading activities|153|12|109|12| |Investment income|24|2|24|2| |**Total**|**1,225**|**100**|**922**|**100**| Fundraising costs were significantly higher in 2021/2022 (£228,000) than 2020/2021 (£89,000), this was due to an increase in staff costs. Staff that were redeployed to the Trust during the COVID-19 pandemic returned to their fundraising roles in 2021/2022. Expenditure during 2021/22 totalled £716,000 and the “Contribution towards the NHS” in the form of charitable grants totalled £349,000. This expenditure relates to medical and other equipment purchases such as IT and furniture to enhance patient and staff welfare. See note 3b and 3c of the Annual Report and Accounts for further analysis of grants. |**Total expenditure**|**2021/22**||**2020/21**|| |---|---|---|---|---| ||**£’000**|**%**|**£’000**|**%**| |Medical Research|0|0|0|<1| |Contributions to the NHS - grants paid|349|49|1,567|87| |Patient welfare and amenity|62|8|49|3| |Staff welfare and amenity|77|11|102|6| |Raising funds|228|32|89|4| |**Total**|**716**|**100**|**1,807**|**100**| None of the charitable funds administered by the Charity have governing documents which specifically bind the Trustee to particular investment powers. The funds are therefore administered within the powers of the Trustee Investment Act 1961, updated by the Trustee Act 2000. The Trustee received an approved pooling scheme for investments from the Charity Commission sealed by order on the 17th March 1998. ## **Reserves and Investments** The Reserves has the objective of retaining sufficient funds to cover the known commitments and future plans of the Charity. The Trustee has established a Reserves and Investment Policy to achieve its aim of supporting a healthy future by assisting the long-term future of Portsmouth Hospitals University NHS Trust by supporting research, education, new equipment, staff and patient benefits and environmental improvements. The pooling scheme has been registered as a subsidiary of the main charity. The common investment fund has been named ‘Portsmouth Hospitals University NHS Trust (Expendable Funds) Common Investment Fund’ by the Charity Commission. The Trustee encourages funds to be spent within a short to medium term. The Charity seeks to invest ethically and ensure that its investments are not opposed to the objects of the Charity. Therefore, the investment policy eschews, as much as practicable, investments in tobacco and alcohol related holdings. A reserve equal to £1 million should be held to provide continuity for achievement of Charity objectives in the event of income fluctuations. The current level of reserves is £3,288,000, which is an increase of £569,000 from 2020/21. The increase was attributable to fund holders facing ongoing challenges in the hospital slowing down charitable fund requests. Requests did pick up later in the financial year with bids approved for expenditure in 2022/23. Funds are held in the Business reserve account and a 31-day notice savings account. Interest rates have dropped over the last 12 months but increased in March 2022. The investment policy links to the reserves policy by requiring all commitments to be backed by cash or near-cash holdings. The objectives of the investment policy are to: Portsmouth Hospitals University NHS Trust has no authority over the Investments which the Charity holds. The Charity Board of Trustees terms of reference has been updated to reflect this fact. - Invest cash securely in order to minimise the risk of any loss or decline in value of the sum invested. - Protect the liquidity of the funds in order that the Charity has the ability to meet all financial liabilities as they fall due. The Charity holds investments with Charities Official Investment Fund (COIF). At 31st March 2022 the investments are summarised as: |**Investments**|**2021/22**|**2020/21**| |---|---|---| ||**£**|**£**| |COIF Shares - At historical ‘book’ cost|508,301|508,301| |Addition||| |Opening unrealised gain accrued|186,969|67,900| |Unrealised gain accrued|60,004|119,069| |Unrealised loss accrued||| |Closing unrealised gain/(loss)|246,973|186,969| |**At market value**|**755,274**|**695,270**| Investments are recorded at market value as at 31st March each quarter of 2021/22. No other investments are held. 2022. The unrealised gain of £246,973 relates to COIF investment. This investment has produced consistent returns **22** | porthosp.nhs.uk/charity porthosp.nhs.uk/charity | **23** **FINANCIAL REVIEW** ## **Risk Management** The major risks to which the Charity is exposed have been identified and are considered on a regular basis by the Charity Board of Trustees. Key risks include the ongoing ability to raise funds through our more traditional channels, the impact of the cost of living crisis and a potential fall in the value of investments. A three-year Strategy was approved in 2021 to actively mitigate these risks. This strategy focuses on raising the awareness of the Charity both internally and externally with a push to diversify our income streams, particularly from within our local community. Charitable expenditure in the year 2021/22 was lower than in previous years. In order to demonstrate the difference donations can make there is a deliberate focus on increasing charitable expenditure in 2022/23. In addition to this the Charity Board of Trustees have also agreed to invest an additional £500,000 of our reserves in 2022/23, while we work to spend down the remainder. Our current investments are low risk. In addition to the risks to income the Charity Board of Trustees have paid attention to the risk of fraudulent fundraising activities. The Charity team remain vigilant to reports of fundraising taking place under the name of the Charity. Any person or organisation who the Charity are aware is fundraising on behalf of the Charity must sign a fundraising agreement form which is obtained from the Charity Office. Procedures are in place to ensure that financial commitments remain affordable within the fund balance. Income and expenditure are covered by the Trusts standing financial instructions and there is recognition criteria in place for the receipt of donations. Expenditure thresholds are in place, as per the scheme of delegation. All expenditure must be authorised by one authorised signatory of the fund, then checked and verified by the Charitable Fund Accountant. The monthly Charity Assurance Committee gives approval for expenditure between £5,000 and £50,000. Any expenditure falling into this threshold also now requires divisional director approval. This must then be authorised by the Chief Financial Officer. Each month the Charity Assurance Committee also receives an overview of all charitable expenditure, as well as any bids exceeding £50,000 which must be authorised by the Charity Board of Trustees. In addition to this the Charity also ensures any bid over £100,000 is considered by the Trusts Business Case Review Committee prior to consideration by the Charity Board. Any non-charitable purchases are charged back to the appropriate NHS budget. specific procedures are in place, which all members of the organisation are obligated to follow. ## **Our Future Plans** The aims and objectives for the next twelve months are to continue to work to deliver on our three-year strategy. The strategy is framed around five key workstreams: - Income generation to support a three-year delivery plan - Internal relationships, awareness and impact maximisation - External communications, marketing and community positioning - Improved working with fund holders - Effective systems, processes and governance In addition to the workstreams, three key priority areas have been identified for 2022/23 as follows: - Build a network of Charity Champions - Greater engagement with clinical teams - Energising the funds Our charitable expenditure will continue to be determined by the equipping needs of the hospital and may include the following areas of spend: - Purchase of Medical equipment - Enhancement of patient facilities - Staff training, conferences, and educational books - Support of research projects Based on the Accounts for the financial year the Trust Board, on behalf of the Sole Corporate Trustee, believes that the Umbrella Charity and its linked Special Purpose Charities can meet all their current and future foreseeable commitments. Signed on behalf of the Trustee on 20 January, 2023. Chair Melloney Poole OBE Date 20 January, 2023 Trustee Penny Emerit Date 20 January, 2023 ## **Statement of trustee’s responsibilities** The Charity Board of Trustees confirms that it met the responsibilities set out above and complied with the requirements for preparing the accounts. The financial statements set out on pages 28 to 39 attached have been compiled from and are in accordance with the financial records maintained by the Charity Board of Trustees. The Charity Board of Trustees are required to act in accordance with the trust deed and the rules of the Charity within the framework of trust law. The Charity Board of Trustees are responsible for: • keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the funds held on trust and to enable them to ensure that the accounts comply with requirements in the Charities Act and those outlined in the directions issued by the Secretary of State; By Order of the Trustee Signed: - establishing and monitoring a system of internal control; and - establishing arrangements for the prevention and detection of fraud and corruption. The Charity Board of Trustees are also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Chair Melloney Poole OBE Date 20 January, 2023 The Charity Board of Trustees are required under the Charities Act to prepare the trustees annual report and accounts for each financial year which shows a true and fair view of the financial position of the funds held on trust. In preparing those accounts, the Charity Board of Trustees are required to: Trustee Penny Emerit Date 20 January, 2023 - apply on a consistent basis accounting policies - make judgements and estimates which are responsible and prudent; - state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the accounts; and - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Charity will continue in business. In addition to the specific systems detailed above a comprehensive set of generic Trust and Charitable Fund **24** | porthosp.nhs.uk/charity porthosp.nhs.uk/charity | **25** ## **Independent Auditors Report to the Trustee of Portsmouth Hospitals Charity** ## **Opinion** ## **Other information** We have audited the financial statements of Portsmouth Hospitals Charity for the year ended 31 March 2022 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and the related notes 1 to 20, including as summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) including FRS 102 “The Financial Reporting standard applicable in the UK and Republic of Ireland”. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained in the annual report. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of the other information, we are required to report that fact. ## **In our opinion the financial statements:** - give a true and fair view of the state of the charity’s affairs as at 31 March 2022 and of its net income and application of resources, for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and - have been prepared in accordance with the requirements of the Charities Act 2011. We have nothing to report in this regard. ## **Basis for opinion** ## **Matters on which we are required to report by exception** We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report below. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion: - the information given in the Trustees’ Annual Report is - inconsistent in any material respect with the financial statements; or - sufficient accounting records have not been kept; or - the financial statements are not in agreement with the We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. - accounting records and returns; or - we have not received all the information and explanations we require for our audit. ## **Conclusions relating to going concern** ## **Responsibilities of trustees** In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate. As explained more fully in the trustees’ responsibilities statement set out on page 25, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the charity or to cease operations, or has no realistic alternative but to do so. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period to 31 March 2024. Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report. However, because not all future events or conditions can be predicted, this statement is not a guarantee as to the trustee’s ability to continue as a going concern. - **26** | porthosp.nhs.uk/charity this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Our procedures had a focus on compliance with the accounting framework through obtaining sufficient audit evidence in line with the level of risk identified and with relevant legislation. ## **Auditor’s responsibilities for the audit of the financial statements** We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder. • We assessed the susceptibility of the charity’s financial statements to material misstatement, including how fraud might occur by understanding the potential incentives and pressures for management to manipulate the financial statements, and performed procedures to understand the areas in which this would most likely arise. Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. - To address our fraud risk of the inappropriate recognition of revenue, we tested the Charity’s material income streams to gain assurance that income is measured correctly and recorded in the correct period of account. - Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. - Misstatements can arise from fraud or error and are considered material • if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. - To address our fraud risk of the misclassification of charitable funds, we the classification of material funds - received in the period to gain assurance they were classified as unrestricted, designated or restricted by reference to supporting evidence of the donor’s intention and any conditions attached to the funding. ## **Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud** A further description of our responsibilities for the audit of the financial statements is located on the Irregularities, including fraud, are instances of noncompliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect irregularities, including fraud. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and management. Financial Reporting Council’s website at https://www.frc.org. uk/auditorsresponsibilities. This description forms part of our auditor’s report. ## **Use of our report** This report is made solely to the Trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity’s trustees those matters we are required to state to them in an auditors’ report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed. - We obtained an understanding of the legal and - regulatory frameworks that are applicable to the charity and determined that the most significant are: - The Companies Act 2006 - The Charities Act 2011 - Financial Reporting Standard 102 - Accounting and Reporting by Chairties: Statement of Recommended Practice (Charities SORP) We understood how Portsmouth Hospitals Charity is complying with those frameworks by understanding the incentive, opportunities and motives for non-compliance, including enquiring of management and those charged with governance and obtaining and reading documentation relating to the procedures in place to identify, evaluate and comply with laws and regulations, and whether they are aware of instances of non-compliance. We corroborated this through our reading of the Charity’s committee minutes. Based on Ernst & Young LLP **Statutory Auditor** ## **Newcastle upon Tyne** ## **23rd January 2023** Ernst & Young LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006 porthosp.nhs.uk/charity | **27** **Statement of Financial Activities for the year ended 31st March 2022** **Balance Sheet as at 31st March 2022** **----- Start of picture text -----**
Note Ring Fenced General Fund Specialty Total Total
Fund Funds
(Restricted) (Unrestricted) (Designated) Funds 21-22 Funds 20-21
£000 £000 £000 £000 £000
Income and Endowments from: 2
Donations and Legacies 28 252 502 782 597
Charitable Activities 70 180 16 266 192
Investment Income 0 5 19 24 24
Other Trading Activities 0 54 99 153 109
Total Incoming Resources 98 491 636 1,225 922
Expenditure on: 3
Raising Funds (159) (69) (228) (89)
Charitable Activities:
Medical Research 0 0 0 0 0
Contributions to the NHS 3b (70) (71) (208) (349) (1,567)
Patient Welfare and Amenity 0 (13) (49) (62) (49)
Staff Welfare and Amenity 0 (42) (35) (77) (102)
Total Expenditure (70) (285) (361) (716) (1,807)
Net Gains/(Losses) on Investments 4 10 50 60 119
Net Income/(Expenditure) 28 216 325 569 (766)
Transfers between Funds 9 0 0 0 0 0
Net movement in Funds 28 216 325 569 (766)
Fund Balances brought forward
25 286 2,408 2,719 3,485
from previous year
Fund Balances carried forward 53 502 2,733 3,288 2,719
**----- End of picture text -----**
The notes at pages 30 to 39 form part of this account. **----- Start of picture text -----**
Note Ring Fenced General Fund Specialty Total Total
Fund Funds
(Restricted) (Unrestricted) (Designated) 31 March 22 Funds 20-21
£000 £000 £000 £000 £000
Fixed Assets
Investments 4 0 145 610 755 695
Total Fixed Assets 0 145 610 755 695
Current Assets
Debtors 6 0 15 29 44 15
Stock 1g 0 0 0 0 0
Cash and Cash Equivalents 5 53 355 2,148 2,556 2,064
Total Current Assets 53 370 2,177 2,600 2,079
Liabilities
Creditors: Amounts falling due
7 (13) (54) (67) (55)
within one year
Net Current Assets 53 357 2,123 2,533 2,024
Total Assets Less Current Liabilities 53 502 2,733 3,288 2,719
Funds of the Charity
Income Funds:
Restricted 53 0 0 53 25
Unrestricted 0 502 0 502 286
Designated 0 0 2,733 2,733 2,408
Total Charity Funds 53 502 2,733 3,288 2,719
**----- End of picture text -----**
The notes at pages 30 to 39 form part of this account. Signed Date 20 January, 2023 **28** | porthosp.nhs.uk/charity porthosp.nhs.uk/charity | **29** **Statement of cash flows for the year ending 31st March 2022** ## **Notes to the Accounts - continued** **----- Start of picture text -----**
Total funds Total funds
2021/22 2020/21
£000 £000
Cash flows from operating activities: 468 (1,032)
Net cash provided by operating activities 468 (1,032)
Cash flows from investing activities:
Dividends, interest and rents from investments 24 24
Proceeds from the sale of investments 0 0
Purchase of investments - -
Net cash provided by investing activities 24 24
Change in cash and cash equivalents in the reporting period 492 (1,008)
Cash and cash equivalents at the beginning of the reporting period 2,064 3,072
Cash and cash equivalents at the end of the reporting period 2,556 2,064
**----- End of picture text -----**
## **Notes to the Accounts** ## **1. Accounting Policies** ## **b) Funds structure** ## **(a) Basis of preparation** The financial statements have been prepared under the historic cost convention, as modified for the revaluation of certain investments, and in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with Financial Reporting Standards applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011. Where there is a legal restriction on the purpose to which the fund may be put, the fund is classified in the accounts as a restricted fund. Funds where the capital is held to generate income for charitable purposes and cannot be spent are accounted for as endowment funds. The Portsmouth Hospitals Charity does not have any endowment funds. Other funds are classified as unrestricted funds. Unrestricted funds are available for application at the discretion of the trustee in furtherance of the charitable objectives of the Charity. The Trustee may earmark an element of the unrestricted funds for a particular project and these are identified as designated funds. This designation does not legally restrict the trustees’ discretion to apply the fund. The Trustee considered that there are no material uncertainties about the Portsmouth Hospitals Charity’s ability to continue as a going concern given the levels of reserves and the performance of previous years. There are no material uncertainties affecting the current year’s accounts. The going concern assessment is made for the period up to 31st March 2024. ## **(c) Income** All income is recognised once the Charity has entitlement to the income, it is probable that the income will be received, and the monetary value can be measured with sufficient reliability. Income is recognised as follows: • Donations: These are accounted for when received. Online donations are accounted for once they have been confirmed. ## • Grants: Where there are terms or conditions attached to income, particularly grants, then these terms or conditions must be met before the income is recognised. Where terms or conditions have not been met or uncertainty exists as to whether they can be met then the relevant income is not recognised in the year but deferred and shown on the balance sheet as deferred income. ## • Legacies: These are accounted for when received or where the receipt of the legacy is probable. Receipt is probable when: - Confirmation has been received from the representatives of the estate and probate has been granted. - The executors have established that there are sufficient assets in the estate, after settling any liabilities, to pay the legacy; and - Any conditions attached to the legacy are either within the control of the Charity or have been met. If there is uncertainty as to the amount of the legacy and it cannot be reliably estimated, then the legacy is shown as a contingent asset. • Gifts in kind: Donated goods, facilities and services (including Volunteers) are recognised as income when the following criteria are met: - Entitlement – control over the expected economic benefits that flow from the donation has passed to the Charity, - Probable – it is more likely than not that the economic benefits associated with the donated item will flow to the Charity; and - Measurement – the fair value or value to the Charity of the donated item can be measured. • Activities for generating funds: These are activities carried out by the Charity to generate income which will be used to undertake its charitable activities. These are not part of the direct charitable activities but are carried out in order to generate income to support those activities. - Investment Income: is apportioned to funds based on their weighted average balances at the end of the financial year. ## **(d) Recognition of expenditure** Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the Charity to the expenditure, which is probable and measurable. All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to this category. ## • Raising funds: The costs of raising funds are the costs associated with generating income for the funds held on trust. This includes the cost of the fundraising staff and purchases of goods to sell at a profit and investment management fees. ## • Charitable Activities: Costs of charitable activities comprise all costs incurred in the pursuit of the charitable objectives of the Charity. These costs, where not wholly attributable, are apportioned between the categories of charitable expenditure in addition to direct costs. ## • Grants Payable: These are payments made to third parties, including NHS bodies, in furtherance of the Charity’s objectives to relieve those who are sick. They are accounted for on an accruals basis where the conditions for their payment have been met or where a third party has a reasonable expectation that they will receive the grant. ## • Support costs: Support costs are those costs which do not relate directly to a single activity. These include support staff, cost of administration, internal and external audit costs. Support costs have been apportioned between fundraising costs and charitable activities on an appropriate basis, the analysis of support costs and the bases of apportionment applied are shown in note 3d. ## • Irrecoverable VAT: Non-exempt and irrecoverable VAT is charged against the category of expenditure for which it was incurred ## **(e) Fixed Asset Investments** Fixed asset investments are initially recognised at their transaction value and are subsequently measured at their fair value (market value) as at the balance sheet date. The Statement of Financial Activities includes the net gains and losses arising on revaluation and disposals throughout the year. **30** | porthosp.nhs.uk/charity porthosp.nhs.uk/charity | **31** ## **Notes to the Accounts - continued** ## **(f) Realised gains and losses** ## **(j) Creditors** All gains and losses are taken to the Statement of Financial Activities as they arise. Realised gains and losses on investment are calculated as the difference between sales proceeds and opening market value (or the value at date of purchase if later). Unrealised gains and losses are calculated as the difference between market value at the year end and opening market value (or value at date of purchase if later). Creditors are amounts owed by the Charity. They are measured at the amount the Charity expects to have to pay to settle the debt. ## **(k) Change in basis of accounting** There has been no change in the basis of accounting during the year. ## **(l) Prior year adjustments** ## **(g) Stocks** The Charity’s stock comprises of new goods sold in the shop, which include cakes, jams, shopping bags, and trolley coins. The stock is valued on a first in first out (FIFO) basis. There have been no changes to the accounts of prior years. ## **(m) Pooling scheme** An official pooling scheme is operated for investments relating to the Portsmouth Hospitals Charity. The scheme is named Portsmouth Hospitals University NHS Trust (Expendable Funds) Common Investment Fund. Distribution of income is made annually and reflects the individual funds interest in the pool. The scheme was registered with the Charity Commission on 17th March 1998. ## **(h) Debtors** Debtors are amounts owed to the Charity. They are measured on the basis of their recoverable amount. ## **(i) Cash and cash equivalents** Short term investments would be shown on the face of the balance sheet. As these are very liquid funds they are classified as cash equivalents and would be shown as part of cash and cash equivalents. ## **2. Income and endowments** ## **a) Income sources** **----- Start of picture text -----**
Income source Restricted Unrestricted Designated Total Total
Funds 2021/22 Funds 2021/22 Funds 2021/22 2021/22 2020/21
£’000 £’000 £’000 £’000 £’000
Legacies 28 196 374 598 328
Donations 0 56 128 184 269
Other trading activities 0 54 99 153 109
Charitable activities (grants) 70 180 16 266 192
Investment income 0 5 19 24 24
Total 98 491 636 1,225 922
**----- End of picture text -----**
## **Notes to the Accounts - continued** ## **b) Other trading activities analysis** **----- Start of picture text -----**
Other activities Restricted Unrestricted Designated Total Total
Funds 2021/22 Funds 2021/22 Funds 2021/22 2021/22 2020/21
£’000 £’000 £’000 £’000 £’000
Fundraising activities (including
corporate events, local fundraising,
events, etc) 0 38 84 122 95
Fundraising goods Income 0 16 7 23 4
Staff Lottery Income 0 8 8 10
Total 0 54 99 153 109
**----- End of picture text -----**
The Charity shop was set up outside the hospital until they could return to normal trading within the building due to the COVID-19 pandemic government regulations. ## **c) Charitable activities – grants received** **----- Start of picture text -----**
Charitable Activites Restricted Unrestricted Designated Total Total
Grants received Funds 2021/22 Funds 2021/22 Funds 2021/22 2021/22 2020/21
£’000 £’000 £’000 £’000 £’000
NHS Charities Together 0 176 0 176 190
Southampton NHS Charity 70 0 0 70 0
Ickle Pickles 0 0 12 12 2
The Grace Trust 0 3 0 3 0
Wave 105 Cash for Kids 0 0 3 3 0
Other 0 1 1 2 0
Total 70 180 16 266 192
**----- End of picture text -----**
Southampton Hospitals Charity facilitated a grant from NHS Charities Together for £70,000 that was utilised in funding a settling at home service for our patients by the Red Cross. ## **d) Volunteers** Like all charities, the Portsmouth Hospitals Charity is reliant on a team of volunteers to assist us in achieving our objectives. In accordance with the SORP, due to the absence of any reliable measurement basis, the financial contribution of these volunteers is not recognised in the accounts. ## **e) Investment income** **----- Start of picture text -----**
Investment Income Restricted Unrestricted Designated Total Total
Funds 2021/22 Funds 2021/22 Funds 2021/22 2021/22 2020/21
£’000 £’000 £’000 £’000 £’000
Charities Official Investment Funds 0 4 17 21 20
HSBC Short Term Deposit Account 0 0 0 0 0
HSBC 31 days’ notice Account 0 1 2 3 4
Total 0 5 19 24 24
**----- End of picture text -----**
No short-term deposits were made in 2021/22. **32** | porthosp.nhs.uk/charity porthosp.nhs.uk/charity | **33** **Notes to the Accounts - continued** ## **Notes to the Accounts - continued** ## **3. Expenditure** ## **a) Analysis of Total Resources Expended** **----- Start of picture text -----**
Expenditure Raising Funds Charitable Activities Total Total
£000 £000 2021/22 2020/21
£'000 £'000
Restricted Unrestricted Designated Restricted Unrestricted Designated
Research 0 0 0 0 0 0 0 0
Contribution to NHS 0 0 0 70 71 208 349 1,567
Patient welfare and amenity 0 0 0 0 13 49 62 49
Staff welfare and amenity 0 0 0 0 42 35 77 102
Fundraising: staff costs 0 124 53 0 0 0 177 54
Fundraising other costs 0 1 2 0 0 0 3 15
Fundraising shop purchases 0 17 7 0 0 0 24 3
Support & governance: Audit
0 11 5 0 0 0 16 11
Fee
Support & governance: other 0 6 2 0 0 0 8 6
Total 0 159 69 70 126 292 716 1,807
**----- End of picture text -----**
## **b) Details of resources expended** **----- Start of picture text -----**
Contribution to the NHS Restricted Unrestricted Designated Total Total
Funds 2021/22 Funds 2021/22 Funds 2021/22 2021/22 2020/21
£'000 £'000 £'000 £'000 £'000
Research grants 0 0 0 0 0
Grants payable 70 71 208 349 1,567
Allocation of support costs 0 0 0 0 0
Total 70 71 208 349 1,567
**----- End of picture text -----**
## **c) Details of contributions to the NHS at Fund Level** **----- Start of picture text -----**
Fund Name Equipment Patient Staff Total Total
Total Total 2021/22 2020/21
£'000 £'000 £'000 £'000 % £'000 %
Unrestricted 0 94 47 141 40% 1095 70%
Accident & Emergency 6 0 0 6 2% 3 <1
Dermatology 0 0 0 0 0% 5 <1
ENT 5 0 0 5 1% 30 2%
General Medicine 4 0 0 4 1% 0 0%
Gynaecology 0 0 0 0 0% 1 0%
General Surgery 21 0 0 21 6% 2 0%
Imaging 2 0 0 2 1% 10 1%
Intensive Therapy 18 2 0 20 6% 20 1%
Medicine of Older People 3 19 0 22 6% 11 1%
Maternity 0 0 0 0 0% 6 <1
Other Services 0 4 0 4 1% 13 1%
Paediatrics 28 16 0 44 13% 171 11%
Pathology 0 0 0 0 0% -10 <1
Radiotherapy 41 0 0 41 12% 84 5%
Renal Medicine 36 0 3 39 11% 100 6%
Urology 0 0 0 0 0% 26 2%
TOTAL 164 135 50 349 100% 1,567 100%
**----- End of picture text -----**
The Unrestricted fund contributed towards Trustwide initiatives such as the music licence, on site WiFi and the Pride of Portsmouth awards to recognise staff. This fund also supported the ‘settling at home’ service for our patients via the Red Cross. Other high value Equipment purchases included and ultrasound for Renal (£28,000) and Ceiling Panels for our Intensive Care Unit (£16,000). ## **d) Support and Governance Costs** **----- Start of picture text -----**
Governance Costs Restricted Unrestricted Designated Total Total
Funds 2021/22 Funds 2021/22 Funds 2021/22 2021/22 2020/21
£'000 £'000 £'000 £'000 £'000
Support Costs (Services bought
0 0 0 0 0
in from NHS)
Audit fees (external) 0 11 5 16 11
Other (i.e., Insurance, bank char-
0 6 2 8 6
gers, conference fees)
Total 0 17 7 24 17
**----- End of picture text -----**
**34** | porthosp.nhs.uk/charity porthosp.nhs.uk/charity | **35** **Notes to the Accounts - continued** **Notes to the Accounts - continued** ## **e) Raising Funds** **----- Start of picture text -----**
Type of cost Restricted Unrestricted Designated Total Total
Funds 2021/22 Funds 2021/22 Funds 2021/22 2021/22 2020/21
£'000 £'000 £'000 £'000 £'000
Fundraising staff salaries 0 124 53 177 54
Fundraising other costs 0 1 2 3 15
Fundraising shop purchases 0 17 7 24 3
Governance costs: audit fees (external) 0 11 5 16 11
Governance costs: other 0 6 2 8 6
TOTAL 0 159 69 228 89
**----- End of picture text -----**
Fundraising staff costs are significantly more in 2021/22 as the team focussed on charity work rather than COVID-19 pandemic support provided in 2020/21. ## **c) Financial Instruments** The fund consists of diversified investments, principally equities and is designed specifically for charities. The investments are valued at market value. ## **5. Cash and Cash Equivalents** **----- Start of picture text -----**
2021/22 2020/21
£'000 £'000
Cash (HSBC Current Account) 0 4
Deposit account (31-day notice account) 1,511 1,508
Deposit account (HSBC Reserve) 1,045 552
Total 2,556 2,064
**----- End of picture text -----**
## **4. Analysis of Fixed Investments** ## **6. Analysis of Debtors** ## **a) Analysis of Fixed Asset Investment total** **----- Start of picture text -----**
Fixed asset investments 2021/22 2020/21
£'000 £'000
Opening investment value 695 576
Less: disposals 0 0
Add: acquisitions 0 0
Portfolio income 0 0
Net (loss) gain on COIF revaluation * 60 119
Closing investment value 755 695
**----- End of picture text -----**
* COIF is the Charities Official Investment Fund The investment value in 2021/2022 increased by £60,000 although this was considerably less than 2020/2021 (£119,000), due to the COVID-19 pandemic affecting markets values. ## **b) Analysis of Fixed Asset Investment holdings** **----- Start of picture text -----**
Market value as at 31st March Held Held 2021/22 2020/21
in UK outside UK Total Total
£‘000 £‘000 £‘000 £‘000
Charities Official Investment Fund 755 0 755 695
TOTAL 755 0 755 695
**----- End of picture text -----**
**----- Start of picture text -----**
Amounts falling due within one year 2021/22 2020/21
£'000 £'000
Trade debtor and prepayments 20 14
Other debtors - gift aid reclaim 1 0
Reclaim of VAT (exemption) 23 1
Total 44 15
**----- End of picture text -----**
There were no long-term debtors. ## **7. Analysis of creditors** **----- Start of picture text -----**
Amounts falling due within one year 2021/22 2020/21
£'000 £'000
Trade Creditors (67) (55)
Other creditors – Grant repayment 0 0
Other creditors – Gift Aid Adjustment 0 0
Total (67) (55)
**----- End of picture text -----**
The sum owed to Portsmouth Hospitals University NHS Trust is £52K, this is for costs incurred by the Trust on behalf of the Charity - predominantly payments to suppliers and staff costs. There were no long-term creditors. **36** | porthosp.nhs.uk/charity porthosp.nhs.uk/charity | **37** **Notes to the Accounts - continued** ## **Notes to the Accounts - continued** ## **8. Analysis of funds** ## **a) Analysis of Fund balances** **----- Start of picture text -----**
Balance as Income Expenditure Transfers Gains/ Balance as
Fund Charity at 01/04/2021 Losses at 31/03/2022
£000 £000 £000 £000 £000 £000
Restricted Ring Fenced Funds 25 98 (70) 0 0 53
Unrestricted Unrestricted 286 491 (285) 0 10 502
Designated Accident & Emergency 40 8 (9) 0 1 40
Cardiology 86 5 (3) 0 2 90
Dermatology 1 0 0 0 (1) 0
Endoscopy 5 14 0 0 0 19
ENT 61 25 (8) 0 2 80
General Medicine 101 14 (8) 0 2 109
General Surgery 189 13 (28) 0 4 178
Gynaecology 28 1 (1) 0 1 29
Imaging Services 7 6 (3) 0 0 10
Intensive Therapy 33 35 (22) 0 1 47
Maternity 48 9 (1) 0 1 57
Maxillofacial 1 2 0 0 0 3
Medicine for Older People 133 33 (26) 0 3 143
Ophthalmology 17 66 (1) 0 1 83
Orthopaedics 16 1 0 0 0 17
Paediatrics 117 192 (57) 0 3 255
Pathology 14 4 (1) 0 1 18
Radiotherapy 941 61 (90) 0 18 930
Renal Medicine 331 110 (73) 0 7 375
Rheumatology 29 1 0 0 0 30
Urology 72 2 (2) 0 1 73
Other Services 138 34 (28) 0 3 147
Designated 2,408 636 (361) 0 50 2,733
Total 2,719 1,225 (716) 0 60 3,288
**----- End of picture text -----**
## **b) Fund purposes** ## **10. Contingencies** See page 41 of the Annual Report for details of the fund purposes. There are no contingent gains or losses included in the accounts. ## **9. Details of transfers between funds** ## **11. Commitments, Liabilities and Provisions** No transfers took place. The Trustee recognises liabilities in the accounts once a legal or constructive obligation to expend funds occurs. No provisions for liabilities and charges have been included in this set of accounts. The Charity does not make grants to individuals. All grants for the year have been made to Portsmouth Hospitals University NHS Trust. All commitments occur at the point of requisition and do not cross over financial years. ## **12. Reconciliation of net income/(expenditure) to net cash flow from operating activities** **----- Start of picture text -----**
2021/22 2020/21
£'000 £'000
Net income/(expenditure) for the reporting period (as per the statement of financial activities) 569 (766)
Depreciation charges 0 0
(Gains)/losses on investments (60) (119)
Dividends, interest and rents from investments (24) (24)
Loss/(profit) on the sale of fixed assets 0 0
(Increase)/decrease in stocks 0 1
(Increase)/decrease in debtors (29) 26
Increase/(decrease) in creditors 12 (150)
Net cash provided by operating activities 468 (1,032)
**----- End of picture text -----**
## **13. Trustee and Connected Persons Transactions** ## **18. Post Balance Sheet Review** ## **a) Trustee expenses reimbursed** Our COIF investment holding has reduced in value, it currently stands at £693,579 (plus £500,000 additional investment in June 22, total investment £1,193,579) as of 30th September 2022 compared to £755,274 at 31st March 2022. No member of the Trust Board received reimbursement during the year for their duties in relation to the Charity ## **b) Trustee remuneration** ## **19. Related Party Transactions** No member of the Trust Board received remuneration from the Charity during the year. The Trust Board is remunerated by Portsmouth Hospitals University NHS Trust for their role as Executive and Non-Executive Directors of the Trust. During the year none of the Trust Board or members of key management staff or parties related to them have undertaken any material transactions with the Portsmouth Hospitals Charity. ## **14. Auditor’s Remuneration** The auditor’s estimated remuneration of £12,720 (£14,724 inc VAT) related solely to the audit with no additional work being carried out. ((2020/21 £11,358, (£13,630 inc VAT)) The Charity made revenue and capital payments to the Portsmouth Hospitals University NHS Trust, whose board of Directors, listed below, also act as Sole Corporate Trustee. ## **15. Trustee Indemnity Insurance** The members of the Board of Directors, who have acted on behalf of the Sole Corporate Trustee can be seen on page 40 of the annual report. The cost of insurance was £1,617 (2020/21 £1,024). ## **16. Loans or Guarantees Secured against assets** ## **20. Contacting the Charity** ## **of the Charity** ## **Fundraising advice can be obtained from the following contacts:** There are no assets subject to mortgage or charge. ## **17. Connected Organisations** The Charity Fundraising Team on 023 9228 3392. Website: www.porthosp.nhs.uk/charity Email: fundraising@porthosp.nhs.uk The Charity is connected to Portsmouth Hospitals University NHS Trust by providing grants as detailed in note 3a and 3b. Please direct any other query relating to the Charity to the Chief Financial Officer 023 9228 6801. **38** | porthosp.nhs.uk/charity porthosp.nhs.uk/charity | **39** ## **Charity Information** is a registered member of the Fundraising Regulator and adheres to the Codes of Fundraising Practice. The Portsmouth Hospitals University NHS Trust General Charitable Fund was registered with the Charity Commission as an NHS Umbrella Charity by Declaration of Trust in July 1995, Charity number 1047986. During 2014/15 it was decided to re-name the charity to Portsmouth Hospitals Charity, the Charity Commission approved this on the 8th June 2015. Members of the Trust Board who have acted on behalf of the Corporate Trustee are members of the Charity Board of Trustee with voting rights. In 2021/2022 these members were: The Charity has a Corporate Trustee: Portsmouth Hospitals University NHS Trust (the Trust). Portsmouth Hospitals Charity **----- Start of picture text -----**
Name Title From Until
Charity Board of Trustees - Executive Directors with Voting Rights
In post at 31st March 2022 or having left during the year ended 31st March 2022
Penny Emerit Chief Executive 24/03/21
John Knighton Medical Director 11/06/17
Mark Orchard Chief Financial Officer 01/10/19
Chris Evans Chief Operating Officer 01/10/20
Elizabeth Rix Chief Nurse 10/06/19
Charity Board of Trustees - Non-Executive Directors with Voting Rights
In post at 31st March 2022
Melloney Poole Chair and Non-Executive Director 01/05/17
Christine Slaymaker Non-Executive Director 15/05/17
David Parfitt Non-Executive Director 15/05/17
Martin Rolfe Non-Executive Director 20/09/18
Graham Galbraith Non-Executive Director 24/06/20
Vivek Srivastava Non-Executive Director 28/10/20
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The Trust Board delegated the authority for the management of the Charity to the Trust’s Charity Board of Trustees. No member of the Trust Board received remuneration from the Charity during the year. The Trust Board is remunerated by the Trust for their role as Executive and Non-Executive Directors of the Trust. In particular the Charity Board of Trustees: - manages the affairs of the Charity within the terms of its Trust Deed and appropriate legislation; - oversees the investment of funds in accordance with the Trustee Act 2000 and, if necessary, appoints fund managers to act on its behalf; • ensures funding decisions are appropriate and consistent with the Charity’s objectives, to ensure such funding provides added value and public benefit; The Trust Board has approved the establishment of a body to be known as the Charity Board of Trustees, on which voting members of the Board of Directors will sit, for the purpose of: - receives regular reports on the performance of any charitable fundraising activities; - Overseeing the management of the affairs of the Charity on behalf of the Trust, the sole Corporate Trustee of the Charity; - oversees the implementation, as appropriate, of procedures and policies to ensure accounting systems are robust, donations are received and coded as instructed and that all expenditure is reasonable, and ethically appropriate; - Ensuring that the Charity operates within the terms of its Trust Deed and appropriate registration with the Charity Commission. approves the annual accounts and report of the charity, ensuring that all relevant information is disclosed. reviews and approves any returns/ information required to be submitted by legislation to NHS England & Improvement and the Department of Health & Social Care or the Charity Commission; - On a monthly basis receive and review a list of all charitable funds expenditure, to include grants of <£5,000 - • Review the Charity Risk Register - - Receive and review annual charitable funds’ expenditure plans - Ensure that Charity policies and procedures are updated and maintained in accordance with applicable Charity Law - - makes arrangements to induct new members of the Committee Ensure that the Charity Annual Report and Accounts are appropriately drafted for Charity Board Approval - ## **Membership** Ensure that any procedural documents relating the Charity appropriately written, ratified and monitored for compliance in accordance with Trust Policy Ensure that systems and processes for the regular evaluation and monitoring of compliance against any relevant internal and external assessment, standards or criteria are established, developed and maintained. - The Board of Trustees will include the following members: - Chair of the Trust (Chair); - All voting Non-Executive Directors on the Board of Directors; - - All voting Executive Directors on the Board of Directors. All members listed above have voting rights on the Charity Board of Trustees. The Charity Assurance Committee includes the following members: The Chair of the Charity Board of Trustees is also the Chair of the Board of Directors of the Trust. Chief Financial Officer - In addition to the Charity Board of Trustees, there is also a Charity Assurance Committee which meets monthly, for the purpose of: - Chief Nurse - • Director of Governance and Risk • Director of Communications and Engagement Chief People Officer - • Monitoring progress of Charity against strategic and/or operational plans. Head of Financial Accounting (or nominated deputy) Head of Charity (or nominated deputy) Fundraising Manager - - • Oversee and recommend charitable funds expenditure between £5,000-£50,000 in accordance with charitable - Group Secretarial Support - - funds policies. Recommendations are made to the CFO to progress under their scheme of delegation. - Review bids of £50,000+ ahead of submission to the Charity board ## **Governance and Management** Portsmouth Hospitals Charity is the overarching registered Charity or Umbrella Charity. The Umbrella Charity has 23 Special Purpose Charities linked to it all of which were formed by a Declaration of Trust. The Portsmouth Hospitals Working Together Fund is unrestricted; all donations received by the Charity without naming a specific department or ward for benefit, are placed in this fund. This fund is administered by the Trust’s Chief Financial Officer. The remaining 22 special purpose charities include delegated funds which cover a specific internal departmental/ward fund/ appeals. - 1) Accident & Emergency 9) Imaging Services 2) Cardiology 10) Intensive Therapy 3) Dermatology 11) Maternity 4) Ear, Nose & Throat (E.N.T.) 12) Maxillofacial 5) Endoscopy 13) Medicine for Older People 6) General Medicine 14) Ophthalmology 7) General Surgery 15) Orthopaedics 8) Gynaecology 16) Paediatrics - 17) Pathology Services 18) Radiotherapy - 19) Renal Medicine - 20) Rheumatology - 21) Urology - 22) Other Services **40** | porthosp.nhs.uk/charity porthosp.nhs.uk/charity | **41** ## **Charity Information** Each of these funds has at least two signatories who act as fund holders on a day to day basis. It is expected that the fund holders manage these funds in accordance with the Standing Financial Instructions, Standing Orders, Charitable Funds Code of Procedures and Scheme of Delegation as set by the Corporate Trustee. There have been no material changes to these policies and procedures this year. The objectives of the Umbrella charity (the Charity) and its Special Purpose/ Speciality Charities are as follows: General Charitable Fund (Umbrella Charity) Funds are held for any charitable purpose relating to the National Health Service. Specialty Charities Funds are held for any charitable purpose relating to the specialty services provided by Portsmouth Hospitals University NHS Trust. ## Restricted Ring-fenced This fund is closed. Funds remain to purchase a specific piece of equipment; however, purchase was initially delayed due to specification needs, and now further delayed due to the COVID-19 pandemic. An additional donation has been added this year for the purpose of purchasing equipment, this is intended to be spent in 2022/2023. Members of the Trust Board and the Charity Board of Trustees are not individual trustees under charity law but act as agents on behalf of the Corporate Trustee. Non-Executive Members’ of the Trust Board are appointed by NHS England & Improvement and Executive members of the Board are subject to recruitment by the NHS Board. The NHS Trust, as Corporate Trustee, appoints a Charity Board of Trustees to manage the Charity under delegated authority. Acting for the Corporate Trustee, the Charity Board of Trustees is responsible for the overall management of the Charitable Fund and meet quarterly. The Charity Board of Trustees is required to: - Keep proper accounting records which disclose with reasonable accuracy the financial position of the fund held on trust and to enable them to ensure that the accounts comply with requirements in the Charities Act and the Statement of Recommended Practice by charities (SORP) 2015, updated 2016. • Review and approve the Annual Report and Financial Statements. - Review the Governance Report and confirm any nonadjusted accounting errors. The accounting records and day-to-day administration of the fund are dealt with by the Chief Financial Officer located at the principal office. ## **Activities** Portsmouth Hospitals Charity ensures that all activities carried out to raise funds are in line with the Fundraising Regulator and Codes of Practice and the Charity’s internal processes and policies. The Team are aware of donor’s wishes ensuring that these are honoured and communicated with the donor. In the year 2021/22 we received no complaints. The Fundraising Team have mandatory training each year on safeguarding for vulnerable adults and this is then integrated into supporting vulnerable donors to ensure they are protected. ## **Public benefit** The Trustees confirm they have paid due regard to Charity Commission guidance on public benefit in deciding what activities the Charity have undertaken during the year and have continued to support a wide range of charitable activities. These include charitable grant funding for the Trust and fundraising across a number of platforms to raise more funds. In awarding grants the Trustee is aware of its responsibilities under charity law in ensuring the maintenance of public benefit in all aspects of its work. Funding patient and staff welfare, improvements and amenities is, by definition, meeting public benefit. Portsmouth Hospitals University NHS Trust is the main beneficiary of the Charity and is a related party by virtue of being the Corporate Trustee of the Charity. However, when the Trust Board is making decisions regarding the Charity it does so with the best interests of the Charity in mind and with consideration of Charity Commission guidance, Charity law and the expressed wishes of donors. By working in partnership with the Trust, charitable funds are used to best effect for the benefit of patients and staff. When deciding upon the most beneficial way to use funds, the Corporate Trustee has regard to the main activities, objectives, strategies and plans of the Trust. ## **Reference and Administrative Details** ## **Registered and Working Name** ## **Auditors** Portsmouth Hospitals Charity Ernst & Young LLP Grosvenor House Grosvenor Square Southampton SO15 2BE ## **Registered Charity Number** 1047986 ## **Registered Address** Portsmouth Hospitals University NHS Trust Queen Alexandra Hospital Southwick Hill Road, Cosham Portsmouth PO6 3LY ## **Bankers** HSBC Bank plc 118 Commercial Road Portsmouth PO1 1EP ## **Solicitors** ## **Principal Address** Mills & Reeve Monument Place 24 Monument Street London EC3R 8AJ Portsmouth Hospitals Charity Charity Office Albert House (G8 and G9) Queen Alexandra Hospital Southwick Hill Road, Cosham Portsmouth PO6 3LY ## **Charity Contact Details** Tel: 02392 283392 E-Mail: fundraising@porthosp.nhs.uk www.porthosp.nhs.uk/charity - Establish and monitor a system of internal control. - Establish arrangements for the prevention and detection of fraud and corruption. - Advise the Trust Board on the performance and risks of the Charity. The Charity achieves its purpose by making charitable grants to the Trust to fund expenditure on equipment and research and by direct expenditure on staff, education, environmental improvements and other complimentary services. e **42** | porthosp.nhs.uk/charity porthosp.nhs.uk/charity | **43** ## **Portsmouth Hospitals University NHS Trust** Portsmouth Hospitals Charity, Queen Alexandra Hospital, Cosham, Portsmouth PO6 3LY 023 9228 3392 fundraising@porthosp.nhs.uk porthosp.nhs.uk/charity Charity Registration No. 1047986