Liverpool University Hospitals Charity Liverpool University Hospitals NHS Charitable Fund Registered Charity Number 1047988 ANNUAL REPORT FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Royal Liverpool University Hospital Prescot Street Liverpool L7 8XP
Liverpool University Hospital NHS Cliarilable Fund ANNUAL REPORT & FINANCIAL STATEMENTS 202312024 Contents Details Pa Foreword Stateinent of Trustec Responsibililies Trustee Report . Financial Sialements 2023/24 14 Stalement of Financial Activities 15 Balance Sheet 16 Cash flow Report . 17 Notes to Ihe Accounis . Iiidependenl auditor's report io the truslee of Liverpool University Hospitals N14S Charitable Fund 32 Trustee Report Appendices 36 Appendix A- Governing Document Appendix B - Investment Management Guidelines Appendix C - Etliical Investment Guidelines Page I
LIVERPOOL UNIVERSITY HOSPITALS NHS CHARITABLE FUND Registered Charity No 1047988 ANNUAL ACCOUNTS 2023-24 Tlie Truslee presents tlie accounts of tlie fiinds Iield on Iriist by tlle Liverpool University I4ospitals NHS foundation Trust. FOREI WOIID Tliesc fiiianciic I sllL tciiiciils liave bccii prcpclr¢d by tl)L Triistce iii 2& ccordcliicc iviill tlie Cliarities Act 201 l ai)d tl)c Cliarilics Sialciiiciil of RccoiiiiiiLiided Praclic¢ (SORP) {fRS 102) 2019. STATUTORY BACKGROUND Tlie NHS Trust is tlie corporatc triistce of tlic fiiiids licld on triist iiiidcr Pi1f<lgifK2plI 16c of ScliedLile 2 of tlic NI4S aiid Coii)iiiiiiiily Care Act 1990. Royal Liverpool and BroadLyreen University l-lospilals NHS Trusi dissolved on the 30 Sepieinber 2019, joining with Ainlrcc Univcrsity l-lospilal NFIS fouiidalion Trust to become a coinbiiied orgaiiisaiion nained Liverpool Universily 14ospitals N14S foundalioii Trust from I, October 2019. MAIN PURPOSE OF THE FUNDS HELD ON TRUST Tlic Inaii) purpose of ilic cljaritoble fiinds l)eld oii triist is to apply iiicome for any cliaritable piirposc relalii)gi to tlic Nalioiial I4caltli Servicc wliolly or in¢liiily for ilie scrviccs provided by ilic Liverpool Uiiivcrsiiy Hospitals NFIS Fouiidalion Triist. Page 2
LIVERPOOL UNIVERSITY HOSPITALS NHS CHARITABLE FUND STATEMEN'T OF TRUSTEE'S RESPONSIBILITIES Tlie TruslLe is respoi)siblc t.or prcpc1rii)g Ilic Truslecs, Annual report and the financi<il statcnicnts in accordaiicc witli applicablc lwS and rcguilq4 tions. Tl)e Cliarilieb Act 201 I rcquires ilie trustec to prcpare finiincial btatenients for eucRI finaIi¢ial ycar. Tlie Irustcc h(28 to prLpare Ilie fiiiuiiciiil %tiltemeiit% iii uccordaiicc iviili Uiiitcd Kiiigdom Geiicr&illy Acccpled Accouiiliiig Practice (Uiiiled Kiiigydom AccouiitiI)g Staiid£1rd8 c111d ppIic1c blL 1&1W), incliidiiigi FRS 102 Tlie liinancilll RLporlingv Staiidard pplicrfiblc in Ihc UK Ind RcpiibliL of Ii'Ll&iiid. TIIL tiiislLC niust not 2£ pprovc tlic fin4illciiil sl41tcmLnts iiiilLss it is salisficd tlii2t ihcy givc Il IrLIC i1nd f&lir vicw of tlic st4ltc of arr11 il's of tlic cliai'ily IiIid of tlic iiiconiiii&i rcsourccs aiid &ippIiciilioii ol. rcsoiirLcs, iiicliidiiigi tlie iiiconic aiid expeIidiliirc, ol. tlic cliiirity lor tliat period, In prLp¢ll'inbF Ihcsc financiiE I st4ltcmLnls, tlIL Corpor1& Ic TnislLL is i'eqiiired to: sclect suitlL blc ilccoiinlinb policics rfind i1pply Ihcm con8islcntly. oI)%LrvL tIIL IIIL'tliod% Liiid i)riiiLiplL'4 iii tliL' Cli4iriliL's SOIIP. ni&ike judgeincnls cind cstini14 Ics t111¢ t irc rci1soiiablc ¢ind priidcnl. st41tL' wlictlicr ¢ippIicciblc li ccoiintiiigl sliliid41rd$ 111< vc bccn folloivcd, siibjccl to liny ni¥?lerial dcpartiircs discloscd ic nd cxpl2¢ incd in tlic finilllcicll stc1tcincnls' and prcpcirc Ilic finiillci<il st¢ltLmcnls oli tliL &)oinbi concLrn b¢1SiS iinlcss il is inli ppropi'iatc to prcsiimc tliilt ilic C1114 I'ity will continuc lo opcratc. Tlie IrLlStLe 1% rc%poiisiblc for kcepiiig LidL'qii<L' &iccoiiiiliiigF rLLord,4 thcil cirL' .%iil'liciLiit to %liow lid L'xpliliTI IIIL LIILirily'% trLlllS%iLIioii% ¢iiid disLlo4¥ iviih r¥il%Ull¢iblc 41LLiif¢)Ly ¢11 ¢llly tiinL IIIL linaTl¢ic21 position of'tli¢ c1i41rily 1¢ nd ¥lirfibl¥ Ilicin lo ¥nsurL Ili¥il Ili¥ fiii¢illci¢11 slalLmLnls coinply witli tlic Clinritics Act 2011, Iljc Cli1& rity (Accoiinls nd RLporls) Rcgiiil2s lions 2008 4in(l iliL provisioiis of Ilic Irust dccd. It is also rcspoiisiblc foi. safcgiiarding tlic asscls of ihc ch<irily (2nd IIciicL for Icikiiig rLasoiiablL 4lLp.4 for IliL prLvLiitiOll ¢iiid dLtLclioii ot. li.aud uiid otliL'r irrcgyiiliirilics. Tlic Tnistce coiilirins tliic l il lilis illLi ilie rL%p()ii%ibililiL% sLI oiit ¢il)OVL 11 lid coinplicd witli the requirL'inLnt.s lor prcp41ringi tIiL Ic cLounls. TIIL fiiiclllLicil %l¢ltLIllLllts sLI oiit oli Pli gics 25 to 42 qL ttiiclicd liiiV¢ bccn coiiipilcd t'roin aiid ¢irc in 11 LcordaiiLL willi IliL tlll&iiicial rccords niiiinliiiiicd by tlic Tnislcc. Tlie 2023124 Aiiniial Ilcport & Accounls h¢ive been approved by tlie Triibt Board, at a Inccting Ih lield 011 28 November 2024. By Order of the Trustee Signcd,. Chair . Dated IE/. ! l ./. I Daled 161. 11.1. 2.Lk Financial Trustee . Page 3
CHARITABLE FUNDS TRUSTEE REPORT Introduction It is with pleasure thai the Trusl presents Ilie tweiity-eiglith annual report for thc Charitable Funds ofihe Liverpool University 14ospiials N14S foundation Trust. The Trust is tlie sole corporate Irustec for all cliaritable funds reg7iStered under ihe name of the Liverpool University 14ospitals NI-IS Cliaritable l-,und, the main charily ol: the Trusl. The main charity is tlie charity that has been created with purposes wide cnoiigih for <111 other charilics adiiiiiiisiered by lis Trustec to bc recordcd as special trusts in an iiiiibi'L,Ilu re&yisiration arrangenieiit. Tliis report and linancial staicmcnis have been prcpared in accordance with tlie requiremenis of applicable law and SORP (fRS 102). Lcgal and Administrative Details In Junc 1995, the Cli1< rity Comniission issucd an Uinbrclla Charity Rcgistralion Number, undcr which all the individual charitable funds adniiiiislered by tlic Trustee liave beeii recorded as spccial irusls. Tlie uiiibrcllcq cliarilablc lund is licld iipon trusi t'or 'any charilable purposc or purposes relatingy 10 the Natioiial Flealth Service" Special trusts arc fliiids (or property) lield on separate trusts, on beli¢lifofÉhe charity, for any special purposes ol'tliat charity. These funds are referred to as restricled fuiids wlierc tlic donor has iinposed a restriction on Iiow or wlierc or when the Trusiee can apply ilie funds. A schedule ol'tlie special trusts is appended (Appendix A). Tlie Liverpool Universily Hospitals Nl4S fouiidalion Trusl is Ihe Corporate Trustee of ilie Charitable funds &iovcrncd by tlie law applicable to Trusts, principally the Trustec Act 2000 and also tlie Cliaritics Acl 201 I, thc SORP (FRS 102) and thc I'rust Deed. The registered charity numbcr of the Liverpool Uiiiversity Hospitals NHS Chariiable Fund is 1047988. The Re&yisiered address is: Royal Liverpool University Hospital Prescot Street Liverpool L7 8XP The coryorate irustee of Liverpool University Hospitals NHS Foundation Trust also oversaw a second NHS charity, The Aintree University Hospital Charitable Fund (charity regislration number 1050542) but this was closed in March 2024. The charity is administered by the Charitable Funds Committee, which consists of executive and non-executive directors of the Trust, on behalf of the Trust Board. The committee meets Page 4
bi-monthly to set and monitor administrative policy and consider spending applications. Membership of the Charitable Funds committee is decided by the Trust Board as vacancies arise. Execulive menibers of the Trust Board are subject lo recruitmeni by the Board whereas Non-Executive members are appointed by NHS England. Meinbers of the Trusl Board and the Cliariiable Funds Comniillee are not individual irustees under Cliarity Law but act as agents on belialf of the Corporate Trustee. New Charitable Funds Committee members are provided with induction literature that includes the conimittee's temis of reference; Trustee's Annual report and Accounts; previous commillee minutes and tlie Charity Commission booklet CC3, Ihc l.s.¥eniial Ti'ii.siee. During 2023/24 tlie Charitable funds Committee comprised of: Mr Ibraliiin Ismail Noii-Execulive Dircctor (Coinmiltce Cliair) Mr David Gilbun Noii-lxcciilivc Dircctor Mr Euslace de Soiisa Non-Execiitive Director Mr Cliris Mawdsley Director of Coiiiiniiiiicatioiis & Markctiiig Mr Robert forster Deputy Cliief Ixccutive & Cliief finai)ce Officer Mr David Melia Cliicf Niirse Mr Jiiii Gordiicr Medical Director Tlie Trust's charitable funds are held dislinct from ihe exchequer funds of ilie Liverpool Universily Flospilals NI-IS foundatioii Trust. The cliarity's bank accounts are held at: Natwcst 2, floor 280 Bisliopsgate Loiidon IC2M 4RB and Barclays Bank plc 48B150 Lord Strcct Liverpool L2 1 TD The cliaritable funds investmenis are Iield by Bankers Trust, as noininee for the Trustee. The investmenis are mana&)ed on behalf of the charity by the following two investment managers: Rathbone Investment Managemeiit Ltd Port ofLiverpool Building, Pier Head, Liverpool L3 INW Barclays Private Bank I Churchill Place, London El 4 5HP Page 5
Two further investment manaLyers are no longer engaged with the charity but did manage investments in the first half of 2023124: UBS AG 5 Broad&Fate. London EC2M 2AN Investec Wealth & Investinent Ltd 100 Old Hall Street, Liverpool L3 (AB Legial advice is provided to the Truslee by: 14111 Dickinson Solicitors No I Si Paul's Square Liverpool L3 9SJ Thc Trusiee responsibilities, which include the maiiitenance offinancial records appropriate to Ilie aciiviiies of the funds; tlie esiablishinent and monitorin&) of a system of internal conlrol; saleguardin&i the asseis of the funds lield on trusl and Iience for taking reasoiiable steps for Ilie prcvcntion and delection of fraud and other irrc&)ularities; are subject to 'intemal audit" veril icatioii by: Mersey Internal Audit Agiency RcL)atta Place Brunswick Business Park Sunimers Road Liverpool L3 4BL The appointed auditors are. Beniiett Brooks & Co Limited St Georgie's Court Winningiton Avenue NoriliwiLlI CW8 4EE Page 6
Charitable Objects and Purpose The Charity's umbrella fund has NHS wide objectives as follows: Thc trustccs shall hold the trust fund upon trust to apply the income, and at their discretion, so far as mdqy be permissible, the capital, for any charitablc purpose or purposes relating to tlic National Ilcalth Service. Object: Donations received by the Charity may be expended on 'any charitable purpose or purposes relating to the National 14ealth Service wliolly or mainly for the service provided by University Hospitals of Liverpool N14S foundation Trust. Thc Charitablc Purpose ol'ilic Cliarity was refreslied on I I Ill .lanuary 2024 to provide gyreater clarily io donors and suppori deLision niaking wlieii girant lunding: I"0 support Iii&yli qualiiy patient care and staff liealili and wellbeing beyond that which the NHS providcs by generatiiig? cliarilable income io: l. Improve the carc cnvironment and patients, expcricncc. 2, Provide medical equipmcntlsystcms that are in addition to miiiiinum slandards required of the service. 3. Fund rcsearch, innovation And education programmcs tliat directly coniributc to the carc of our paliciits. 4. Fund specific staff llnd voluntcer heiilth and wellbeing projects. Page 7
Annual Report and Accounts Incoming resources to the Trust's charitable funds iotalled £1,323,000 for the year ended 31 March 2024, a fall of £1,472,000 on Ihe previous twelve months total of £2,795,000. However, this included nei assets of £99,000 transferred over from the Aintree University l-lospilal charity and so ihe actual comparable drop in income was £1,573,000 from last year. This was due to donations fallingF by £155,000 to £625,000 in 2023124 and legyacy income falling by £393,000 to £339,000 in 2023124. Included witliin these figjures are: a) Corporate donations of £248,000 ihe largesl ofwliicli included: £1 00,000 gyrant from Baker Tilly for Ophthalmic equipment. £35,000 from Sulclirre's from organisingy a fundraisii)g Ball for the cliarily (iotal inconie generaicd from the ball was £50,000). £20,000 froin DSM Dcmoliiions as lead sponsor of the 2023 LUHFT staff awards. iv) £14.000 froni the Police and Crinie Commissioners for tlie Knifesavers Appeal b) Donations froni individuals aniounted to £377,000. The trusl's donated income policy, which prescribes how donations sliould be collected and recorded, is showii in Appendix B (section 2). Legacies from four bequests were received toialling £148,000. A further ninc Icgyacies totalling £191,000 wci'c also nolified and accounicd for in tlie year cnded 31. Marcli 2024. 1.11¢ largiest sin&)le bequesis being: £125,000 notified from the estate of Dorothe Smiih (deceased). £124,000 received & notified from the eslate of Vera Alden (deceased). £23,000 notified froin the estate of Arthur Morris Woodhead (deceased). The total legacies accounied for during 2023124 amounted to £339,000, a decrease of £393,000 on the previous year's figure of £732,000. Investment income totalling £259,000 was earned during7 the year, a fall of £64,000 on the previous year's figure of £322,000. Dividends from equÉty stocks and gilts provided £201,000, and £58,000 was earned from interest on cash balances held (£20,000 in 2022123). Page 8
Fundraisin We raise money for the many charitable funds across the Trust and the focus in 2023124 was to support various initiatives througihout the organisation. The Charity makes use of fundraisers employed by the Liverpool University 14ospilals NHS Foundation Trusi, and subject to conlrol and supervision by the14ospilal Trust. There were no complaints received about tlie fuiidraising activity undertaken during 2023124. As always, we are extremely &¥rateful to tlie individuals and gjroups who fundraise for our cliarity and provide any oilier supporl. The cliariiy also continues io support fuiidraising for tlic Foundation for the Preveniion of Blindncss Fund resc1¢ rcli cliarily. cnditure Direct charitable cxpenditure for Ilie year was £3,339,000 an iiicrease of £1,350,000 on 2022123 spend of £1,989,000. Expeiidilurc accouiited lor iii 2023124 included coiiiributions io Staff Welfare and Anienities of£531,000; Rcsearcli and Iducation gyranis lotallin&1 £699,000; Patient Welfare & Aniciiities iotallingi £1,826,000 aiid &yraiits of £283,000 were provided for N14S Capital projects. Support costs attributable to the graiiis of£59,000 brouL)ht the total Liranis fig?ure lo £3,398,000. A further £428,000 (iiicluding £47,000 support costs) was incurred in the cosls of generating funds for the cliarity, coniprisiiigi £353,000 spent on ¥eraling voluntary iiicome and £75,000 on inveslnient managjemenl costs. Major grants awarded duringy 2023/24 included: £I,01 0,000 supporting Macmillan Cancer scrviccs throughout the orgjanisalion. b) £548,000 on consuniables for Icadingy cdgye robotic surgjery. £288,000 to develop a Data Eye digital platfonn for ophihalmic research. d) £250,000 to support equality, diversity and inequality programines for staff throughout the or&7anisation. £231,000 supporting end of life services through the introduction of SWAN initiative programmes. The expenditure invested by the charity in supporting the services provided by the Hospital Trust has had a positive impact on the quality of care that the Trust is able to provide to its patients and stakeholders not only currently, but also in the future, meeting the overriding aims of the charity. Page 9
Governance costs, the central running costs of the charity that are not apportioned out as
support costs, totalled £78,000. This included salary cosls of £46,000; Audit fees of £19,000,
and esiablishment/other expenses of £13,000. Tliis was an overall fall of £1,000 on last year's
70vernance costs of £79,000, priniarily due to a drop in eslablishment costs.
The overall charity spend in 2023124 was consequently £3,904,000 in tolal (£2,541,000 in
2022123).
Gainsl
losses
on Investment Asscts
Ai ihe start of the 2023124 financial year (I, April 2023), the market value of the investinent
porllolio stood ¢11 £1 0,159,000. Iiivesimcnt lioldingys tolalling £6,655,000 were acqiiired during
the year, while invesiment lioldiiigs willi &2 Clc rryin&? value of £7,564,000 were disposcd of
during the period. The portfolio saw a rise in valuation duriiig 2023124, witli an over
Tn relative ternis, the portfolio has increased by 15.9% since 31, March 2019, with a strong rebouiid in 2020 and 2021 followingi covid related falls in early 2020. This growth also equates to a significant over perfom]ance against the fTSE-All Share index, which lias risen just 9.0% over the same five-year period. The investment portfolio also generated dividend returns of £201,000 in 2023124 (£302,000 in 2022123). The invesiment g)uidelines operated by the Chariiable Funds Investment Comniittee are shown in Appendix B & C. Jndividual fund investment as part of the Invesimeni Pool is reassessed each quarter end. The aiin is to niaximise the polential for inveslmenl returns taking iiito accounl Ihe sl)ort-lerin spcnding pallerns of eacl) fuiid. Tlic Charilablc fuiids Iiivcsiinent Coiiimiiiec measurc the performance of the invcsimcnt nianagjers on a total return basis agiainsi certain bencliniarks, including longi tcrn) target of CPI +40/0. Iliiliincc Sheet The total net assets of ilie Trust's Charitable Funds <lS of 31. Marcli 2024 were £6,542,000, a drop of £1,910.000 on the previous year's balance of £8.452,000. Overall resources expended tlirougili cliarilable gyrants and adniinistralion were £2,581,000 Iiigilier than incoine received, but tlie rise in invesinients of £671,000 reduced the net movenient down. Tlie cliarily's toial net assets coinprised. a) total fixed assels of £9,921,000 solely represeiitingy thc value of the investment portfolio as al 31. Marcli 2024. b) total current assets of £1,118,000 including: stocks of £1,000 in respect of fundraising activities, wliicli have been valued al cost. debtors of £458,000, including £381,000 for notified legacics, not yet received. cash balances of £659,000 being? held to provide cash reserves to each of our rc&yistered cliaritics to mcct commitments as they arise. c) creditors falling due within one year of £4,022,000. d) creditors falling due after niore than one year of £475,000. Page I
Risk Mana cmcnt The Charity has a Risk Managemeni Framework supported by a bespoke Charitable Funds Risk Re&Fisier (based on the Trustee's Risk Managyemeni Systeni). Both are reviewed periodically by the Cliariiable Funds Committee (CFC). The major risks to which the charity is exposed have been identified and considered with systems and processes esiablished to mitigate tliose risks. Si&Jnificani risks are reported io the Corporate Trustee via the crc's Cliair's Assurance Report. Available Resources rund balances as at 31, March 2024 total £6,542,000. ol. which £82,000 is held as capital in perpetuiiylendowment fuiids and as sucli cannot bc freely expended. Tliere is a further £459,000 of funds held in ilie lonn of currcnt asscls (slocks £1,000 and debtors £458,000) and as sucli tliese resources are not immediately available for expenditure. This leaves a balance of resources of £6,001,000. Grant Makin l)olic Bids for cl)aritable girants are considered on their individual merits. All girani requesis under £1 0,000 are considered by a Small Graiits Group. Requesls over £1 0,000 are reviewed by a Grant Makin&7 Pancl. Any &irant requesis over £50,000 will tlien be considered by the Charitable Funds Conimittee for final approval. Appendix A has further details of Ihe expenditure policy. Public Benefit The Trusiee ensures Ihal all gyranis and speiiding plans contain identifiable public benefits, whicl) are clear, undcrstandable, aiid Ineet tlic objccis of the P£lrticular charily concemcd (under the Liverpool University l-lospiials NI-IS Charitable fund uinbrella). Section 17 01. the Charilies Aci 2011 explains the duty of Trustee to have due regard to the public benefit in Ilie managienient and decision niakiii&i of the Charity. The Truslee has ensured thai ihe public benefil requirement is strongily embedded within the procedures and conlrols the Charity has in place, througli all stages of the grant approval process and tlie moniloring of grant expenditure afler approval has been gyiven (all &yrant expcnditure is verified before paynient that tlie speiid rclales to activity set out and approved in the gyrant application). Future Plans The Charity will continue to develop its five-year strategy followin&y the merging of the Royal Liverpool and Broadgreen 14ospitals charity and Ainlree University Hospitals Charity. It will continue to raise funds to improve patient experience and the care environment. Research and clinical innovation programmes will be subject to specific campaigns while contributing to the Page 12
he<llth aiid wellbeiiig of our staff aiid voluntccrs will rcmaiii a core objictivc. Divcrsilying our fiindrciising portfolio and niakingy best iise of digvital innovations will enable our small team to acliicvc tlic bcst outLomcs for thc bcncfit ot.our patients and tlicir lovcd oncs. Conclusion 2023124 has bccn another slronb year for Ihc cli1¢ rity, willi the cliarity beingv <iblc to coininit ftirtlilr sibinificli nl rcsoiirccs to siippoi1 tlic Hospil421 Tnist in improving thc palicnl cxpcriencc through invcstmcnt in rcscarch, cquipincnt, slaff iriqininLi & wcllbcing 2cnd scrvicc devclopIiiciits. Il inust be rccogyiiised tliJt nonc of our acl)jeiieiiicnts would bc possiblc willioiit tlie liclrd work ¥111d gFLIiLroii% siipport of voliiiilLers' iiidividiial, corpor47te aiid ini%t doiior%. Iiiid ponsors and Piilron$ 1¢ likc. A vLry warn] 41nd IIccirifLlt Illanks gocs oiit lo all, for iheirdcdication Ind coi)tiiiiied support ot. IliL Tru.st's cliiirilics, Pag¢ 13
Liverpool Uiiiversity Hospilals NHS Cliarilable Fund FINANCIAL STATEMENTS 2023/2024 Page 14
LIVERPO L UNIVER ITY MOSPITAL NHS CHARITAB E FUND- FINANCIAL sfATEMENTS 2023124 1411eiTieiil i)f l. illilllciiil ,Iclii'ities for the )'e4qr eii(led 31 rch 2024 2112211J 21I2212J Re%iri¢icil £vuo £ooii oiiu lJ64 ,J2J 4211 .i)M J,Jl)N 7¥ 7H J,fk4J 7.7Xt4 77 444 7,71111 Page 15
ARITA FINAN IA Balance Sheet ay at 31 March 2024 T1 llt UTrr¢slrlrlvd Fun(Li 31.VJ.24 Rr51rlrttd F.ndowmtnt Funds Funds 31.03.24 31.03.24 TDtlll t lJnr¢$iri¢i¢d R¢51n¢t¢il [.nd0¢nl Inrrb -11.03.?.1 I l.OJ.2.3 MJrih ?n?I £000 £000 IODO £000 £000 InNL41rnLnl 4¥3 ,35? 7b 9.921 9.4?R 74 49J 9,352 70 9.921 657 74 45N 45# J7b J¥ry .s.I 1,497 'lolil C.'urr¢nl AuL'tI 4Y 4,022 7¢1 J,214 IZ,¢J041 444 ¥2 7,1117 5¥4 ¥,Ib5 ¥D ('i¢diiiirx'. Amoun14 fullin¥ Ju¢ un¢r nii>r¢ 475 J77 J77 444 6,V16 7,71M xu %,451 Tr'umds ufihe C'.hirliy C'.Mpll•l .nl: 82 82 tso 80 6,010 7.718 7,7 444 444 5¥4 lolAI thrlly fund5 444 6.016 82 6J42 984 7,78¥
u
ts.432 ThL' niil¢% nl JI fumi pJrt vf Ih¥'%L' finan¥iol %lJl¥m¥nt%. L%I,,/L4 Page 16
LIVERPOOL UNIVERSITY HOSPITALS NHS CHARITABLE FUND - FINANCIAL STATEMENTS 2023124 Statement of Cash Flows for the year ended 31 March 2024 Total 2023124 £000 20221?3 £000 Cu¥h flu.5 from Oper#ilni Activitie5: Nei Casl) providcd by {uscd in) 0,ratIng acliviliLS 12.105) 11001 C'mih flo115 from ini'e.sling nctlvilie5: R¢iurns 01) InvL41inLnis 239 322 PTOCLYds from %ulL of iiivLslmLI)15 7,564 2,835 l>urLIIiL4L of Invcstii)11)Is 16.6551 12.829) Acquisilion ofAIII I ILSS cwll ucqiiirL'd 99 245 Net C115h proi,Ided by (u%cd In) Ini'egilnki it¢ilvltlc8 1.267 573 C.liiinie in cu.¥h nnd cM%h cquli'fftlenli {11311} 473 C.'u81i und (.'ush equlvnlenly lit (he 51nrl of Ilic yemr 1.497 1.024 C'M4h lind C'.Iiqli equii'nlcnll ill Ilie en(J of Ilie yciir 1,497 Reconeilinllon of nel Inconie I Ic%pcndliur¢l tu nel ¢nih lloii, from Opernling ucllvlil¢s NLII inwmc / {cxpLndilurL'} LLS p¢r Ilic SQl'.A Pividends und InlLrL's1 fmn) Invcslmcnl4 11,910) (89) {259) (3221 (Incrc'} I de¢ree in SIoLk% {IncrLiiscI I d¢¢r¢4LS¢ in l)Lbiors 176) 354 IncrLELSL / (d¢cTCILscI in Creditors 906 575 RL'valuiition ofinvcslmcnls (671) 343 l unds I ransfcr froni AUI I (99) (961} Ncl cuyh (outfloiv) I Inflow. from opermilng iiclivilie5 (2,1051 (100) Pagè 17
LIVERPOOL UNIVERSITY HOSPITALS NHS CHARITABLE FUND- FINANCIAL TATEMENTS 2023124 LIVERPOOL UN'IVERSITY IIOSPITALS N'HS C14ARITABLE Fu,D NOTES TO THE ACCOUNTS ACCOUNTING POLICIES Bfjlils of pr¢par4lion The financiAI Slal¢iii¥nl8 Iia%'¥ bLLn PTLpofLd in a¢cordoii¢c iviili Aclouniing Rcporting b>, Chiiriii¢s'. Siui¢m¢ni of KLCOllliiiLiidL¢J I)rociiii upplicoblL' to cliariiiLS pfL'pnrin&b ililir accouiil.% iii occordJn¢¢' i%'iili IIIL l.'iniinLiiII IILpvniiib Staildnrd oppliLablL in IhL Ilk und Ilipublic of ITLlund IFRS 1021 ILffLclii'c l Juniillry 2019 ICliariliLS SUIII> 'I.-11.S 102,1, IhL l.'inilllLilll R¥portiiib .Siaiidard appllLoblL in illi Uk uiid ihL l£epubliL ol. Ir¢liind aiid ilic CliuriiiLS Aci 20 11. I.IVLrpool Uiii¥'¢rsiiy 1104pilul$ Nl [% Cliariinbli rtind niccl.s the dLfiiiilioii of u publiL bLnLfil Liiliiy iindir I".R% IQ2. A$8Lls lliid linbilill¢'4 UTL inilioll>' TLcngnis¥d lli hi%loricul co81 or Iroilgoclion vuliii iinlL8s oiliLn%'isL $llllid in IMI CJrfylnki Conccrn 'IIIL 'I'ru5l¢cs IiavL Lttrriid oiil un u.%SL$sillLni und of illi vii•iV Iliul, n(Il iviilisiAiiding IhL iiLI currLI11 Ibl Crlil¢MI Accountlnk.luilKtment¥ li 8tlmAte% In prLpllrinB i1118¥ fiiiuiiciul 51lllLmcnls. n)oiiugLlI)Ini Ilub IiiudL' judBL'niLnl%, LS1imai¥b an(i llssumptioiis Ilini ¥vuliilllLd uiid bii%L¢J on hi41nri¢nl ¢XPLrliiic Iiiid (IiliLr fiiLlor&. in¢ludinB L.¥PLLliition ol. fiilurL ¢vini.% Iliul nrL. bLIILvLd lo h¢ r¢a%oiittblc iiiidLT IIIL L'iirrLI)i ¢ir¢uii)%liiiicL%, KL'Y judgcinLntS COllL'Lrn Ili¢ timing of r¥¢(Trgnilii)11 of ILBll¢y incoiii¥ Diid iliL rLLugnition ofnivuTd% gTanied lo AssLiS ttnd liobililiL'y UTL iniliiilly rLLogni4id ul jli51oTicnl cost or Iriinsuciion vuluc uiilLqS oIIILfi%'isc Sllll¢d in IIIL fLILvanl ucLouniinB policy Iiolcl8}. (¢1 Lnfll). Combln#tlon.¥ Eniiiy ¢ombinulions for public bcnLfit ¢nii¢iLs arc llccounlLd for iii nccordttn¢¢ iviili parogTapli PBE 34.75 or I'.IIS 102. '1Th¢ combinulion iviih Alll I for till eonsidcrulioii is iii subslanc¥ a gift.'l-h¥ ¥.X¢LS5 of tlic fair voluc of Ilic U8SLl% rLcLiv¢d ovLr ¢lic fair %'uluL of IliL litsbiliiiL% y.8sunii.d 15 rL'cognisLd o.s n gjin in ili¢ StalLnieni or riiiancial AcliviliLS, rLprLSLniing ihl sift of Ihc valul oron¢ lniiiy io anoilicr and is TLCObpni¥id as in¢oinL. Incomc Thc policies folloivcd. i%liich deal i¥'iih ineomc, volunlury a5sisloncL and donations. a.. {A) All incomip8 r¢sourccs Are includcd ira full in tlic Siaicment of FinanciAI Activilies as soon a5 tiic folloiving ihree factors can bc met.. EniitleniLrkt - ariscs ivlicn a particular rcsouTCC is rCcCivb1c or thc charily's right bccom¢s lcgally enfor¢¢8blc: ill C¢rtainly- i¥'hen theic is rca50nable certainty that the incotning resour¢c ivill be rccL'ived.. Pagè 18
LIVERPOOL UNIVERSITY HOSPITALS NHS CHARITABLE FUND- FINANCIAL STATEMENTS 2023124 MLasureni¢nl hcn IhL monLlat)' I'alue of Ihe incoming resources can be measured iviih suificient {b) Gifts in kind Assels givcn for dislribuiion by tl)L cl)urily arL includld in IliL StulLmeni of l.inancio1 A¢livili¢s only Ivh¢n dislribulcd. Asse(s given for u.4¥ b>, lh¥ Lliarily {c.g. propLrty for it5 oivn occupalion) arL includLd in th¢ Sialem¥nl or rinuncial Aclivilics as incoming resource% %vliL'n rcccivablc. Gitls mad¢ in kii)d hul oil Iru51 for conversion inlo casli lind suhs¥quLnl uppliculion by Ili¢. ¢l)arily arL incliidLil ii) tli¢ ac¢oiiii1iiig pcriod in i%'l)icl) Ilic giift is sold, In all cnscs IhL uin()unl ui ivhiLli gill.% in kiiid Ekr¥ broLi&ilil inl(I IIIL IILC()unt is L'iil)Lr u r¢usoniibl¥ Lslimaic or ani)uul rlporl if any girls in kind urL fL¢L'lV¢(I diiriiig Il)C ylar. No siicl) bijft.4 Iv¢r¢ r¢ccivLd in Il)¥ currLiII or priur y¢slr, (e) Intfinglble Income including donnted servlets An(1 fllcllltics InlangiblL' incfiinL' IL.bF. IIIL provi4ion or rri¥ llccoinii)odulionl is inLliidLd ii) IIIL iiL'counlq iviih iin equii'iilL'ni aiiioui)l in nulgioinbi rL'soiifcLts. if Ililri is o finui)cial Lnsl boniL b}, ui)giliLr piirty. 'I'IIL viIIuL pIIiLL(l on 511LI) iiicoinc i.q Ilic finni)ciiil co%1 ol. Il)L Iliird piirly PTovidii)g Il)L fL'%(iufLCY. In ucLordiincL Iviili Ilic LlihriliL'$ SOIIIJ11,'IIS 1021. gL'iILriil volunlLLr liin¢ is iiol rLLOyIII.%Ld us inLOIIIL or Lxpiiidilurc. Id) Legntles LLgyiiLIL.% url uL'L(iuiilLd for ns incoiiiiiig rLSOUTLLS OIICL IIIL rLciipI of iliL ILgyuLy I)LLOliii% probublL. 'I'IIis 'ill h¢ onc¥ ¢onlirniiili()n lili% bLLn rLcLivLd froin Il)L r¢pr¢.5LnlulivL5 01. IIIL LsIIiiL' Iliut payiiiLiII uf IliL' ILgllLy il'ill hc i))ndc Dr pri)PLrty Iriiii.%lirrL'(I Iiiid once (ill ¢ondili0115 IilliiLIILd lo IIIL ILgiLJCy l)IivL. hLin (¢1 Intercst recelvnble nnd (Ilvlden(1 S1)coni¢ Iiiicrc.41 oil funds liLld on dLP04iI ftnd dividend ii)cDniL IS iIILludLd i%'hen rL'cLivublc and Ilic uinounl can b mLsUr( rLliubly by ilie cliarily.. Illi5 is iiorniall>' up()n n()lificiiiioi) of Ilic iiilcrL'S1 or dividcnd puid or piiyublL. Expendliuro The funds held on irusl 8ccounl.8 or¥ prLparcd in uccordiincc i%'iili th¢ accruuls concepi. r.xpenditure is rL'cogni%cd ivl)¢n a liability is incurrL'd iiiid il)crc is a Icgal or con%iructivL obligation lo mak¢ a paymLnl lo ll il)ird Piiriy, il 15 probublL Ilial SLiIILmLnl ivill bc rcquirLd and (l)e gmounl of lh¢ obligaiion Ci2n be mc1L surcd rcliabl}'. Grunt coii)n)ilinLnis ar¢ rccogniscd oncc Il)LrL' 15 a ILgal or conslruclivc obligation io make ll paymcnl lo a third puny. Page 19
LIVERPOOL UNIVERSITY HOSPITALS NHS CHARITABLE FUND - FINANCIAL STATEMENTS 2023124 (a) Cost of raising funds The cost of generating funds are the costs associated ivith generating income for the funds held on trust. It will also include Inveslnienl management costs which consist of direct fees and a proportion of support cosls (see note 5.2). (b) Crants payable Grants payable are payments, made lo third parties (including NHS bodies) in Ihe furtlierance of ihe funds Iield in accordance willi ihe trust's charilable objectives. They are accounled for on an accruals basis where Ihe condilions for their paymenl hav¢ been met or where a tliird party has a reasonable expectation thai Ihey vill receive the grant. Tl)is includes grants paid to N14S bodies. (c) Allocation of Overliend llnd Support Costs Thes¢ are accounted for on an accruals basis and liave been allocaled based upon lime spent or tlie nalure of the activity (see i)Olc 5.1) belween Charitable Activitie5 and Governancc Costs. Oiice allocation ai)dlor apportioninent ofoverliead and siipport costs has been Inade betiveen Charitable Activities and Governancc costs, the cost atlributablc to Cliaritablc Aclivities is apportioned across those activities in proportion to lotal Spend. (d) Governunce Costt> Governance costs coniprisc all cosls Incued in the govcrni& nce of tlic cliarity. Tlicsc costs include costs related to stalutory audit togictlicr iviili an apportioiinieiit of ovcrllead and support COSts. (e) Irrecoveriible VAT Irrecoverable V A T is cliargyed as a c05t ag)ainsi ihe activity for which the expenditure was incurred. Structure of funds Wl)ere tliere is a legal restriction on Ihe purpose to ivhich a fund may be used, the fund is classified in ihe accouiits as a reslricted fund. funds ivliere the capital is lield io generate income for charilable purposes and cannot ilself be speiit are accounted for as endoivmeni funds. Other fuiids are classified as unrestricted funds. funds wl)icli arc noi legyally reslricled bul wl)ich the Truslee has cliosen to eamark for set purposes are designated funds. The major funds held ivitliin these categories are disclosed in nole 12. Tangible Fixed Assets The charity has no tangible fixed asset& Page 20
LIVERPOOL UNIVERSITY HOSPITALS NHS CHARITABLE FUND - FINANCIAL STATEMENTS 2023124 Investment Fixed Assets Investment fixed assets (excluding cash) are shown at fair value, which is deterniined by iheir market value. i) Quoted stocks and shares are included in the balance sheet at mid-market price, ex-div. li) Other investment fixed assets are included at Trustee's best estiinate market value. Reulised gthins and losses All gains and loss¢s are taken lo tlie Siatemenl or rinancial Activities a5 they arise. Realised gyains and losses on inveslmenls are calculatcd as the differeiice betiveen sales proceeds and opening market value (or date of purchase if later). Unrcalised gains and losses are calculated as tlie differcncc between Inarket valuc at tl)c year-ciid ai)d opei)ing inarkcl valu¢ (or date of purLhase if later). Intnnglble Fixed Assets The charity lias no inlangible fixed asset& Stock Siock is included ot tlie lower of cost or net realisablc value. Debtors Trade and other debtors are recognised at cost, beingTr ihe seltleinent amount due. Prepayments are valued at tlie aiiiount prepaid net. 1.11 Cash tht bank and in hllnil Cash at bank aiid in haiid includes casli held in ihc Livcrpool Universily l-10spilals NI-IS Cl)arilable fund's account and ihc amounls lield in tlie ' ii)come' accounts witliin the Cliarily'5 inveslineiit portfolios. 1.12 Crcditors &nd provisions Creditors and provisions are recog?nised ivhere the chariiy has a present obligation resuliing from a past evenl that ivill probably result in the Iransfer of funds lo a third party and the amount due to settle ihe obligation can be measured or eslimaled reliably. Creditors and provisions are normally recognised at iheir settlement amounl. 1.13 Change in the Basis of Accounting There has been no change in the basis of accounting. Page 21
LIVERPOOL UNIVERSITY HOSPITALS NHS CHARITABLE FUND - FINANCIAL STATEMENTS 2023124 1.14 Prior Year Adju.stments There has been no change to the accounls of prior years. i.ls Pooling Scheme Ali official poolinLJ scheine is operated for inveslments covering all funds registered under the umbrella agreeinenl. The scheine was registered wilh the Charity Commission on 26 ' March 2002. Related Party Transactions Durin&i ilie year none ol the Trust Board or meinbers of the key management staff or parties relaled io thein has uiidertoken any Inatcrial iransactions witli the Liverpool University Hospitals NI-IS roundalion Trusl. The charitable Irust has Inade revenue and capitlll payineiits to the Livcrpool Univcrsily Hospilals NHS roiiiidaiioii Trust, wljose Trust Board meinbcrs (wliosc naiiies arc listcd bcloiv) also rcprcsciit tlic Corporate TrLislee. Further deiails of related party iraiisactions can bc fouiid in note 18. Trust Board Membcrs D Flory Chair M Eastwood Non Executive Director S Samuels Non Execulive Dircctor E de Sousa Non Executivc Director I Ismail Non EAeculive Director ProfT Walley Non Execulive Director D Gilburt Noii Executive Director 14 Ciirine Non Executive Dircctor (rcsigncd 19tli December 2023) IE J Bird Non Exccutive Director (appointcd 15th April 2024) ChiefExeculive Officer J Suinner D Mclia ChiefNurse J Gardner Executive Medical Director R Forster Deputy Chief Executivc oleer & Chief finance Officer H Barnett Chief People Officer B Weslon ChiefDelivery olcer P Turkington Executive Managing Direclor- Aintree (appointed 9th May 2023) N Hudson Executive Managing Director- RLUH (appointed 9th May 2023) Page 22
LIVERP NIVER ITrH AL NHS CHARITABLE F ND- FINA IAL TATEMENT Donations & IAgACits esirieii'd 2023-24 Trunds 2023-24 2023-24 Fund$ 2023-24 Total 2022.•3 Funds liuMds unds £ouo D0n)lions 100 525 625 780 LebTroci¢s 339 339 732 Total loo 864 964 TrHdinR Aclliltles Ilnrestrlelt 2023.24 Resltlrlrd 2023.24 .ndowmtn¢ 2023-24 Toil 2023.24 Total ?022-13 1.'unJs un¢lJ unds £IKK> £0 l undiuisin8 Invutnient Inconie IJ vJirl¢iL¥J 2023-24 .ndowmtnt 202>24 2023-24 run(li 2023-24 Toinl 21J22-23 1.-und¥ £(M £00 £000 £ouo Diyidcnds Dnd ini¢$imLni Inict¢41 201 201 302 tjtsnk Ini¢r¢5l J8 58 20 'rotal 322 Donilon from Allll [lnrlflCÈth1 2U23-24 Rcjtrlcltd 2(J23.24 .ndowmeni 2023-24 21123.24 I,'und$ £ouo und% 7022-23 1.'und$ £¢>oo £000 I'rnnsf¢y iii frvm AlJ14 Lhniily 99 901 99 91) 961 Exiirndliure on R•lilnE Ilnri'slrlclt 2023-24 'tt(lowmtnl 2(bZJ-24 2023.24 2023.24 Total 2022.23 l.'und5 £0( £000 rundraisinu C051S Invc51mcnl MonJg¢mgni 10 337 333 360 73. 7.1 08 TolHI IB 410 428 4?8 Lxpcndliure Chthrlirtble Aeiii'itir lIthrtrIctCd RrAlrlcie 2023-24 TolAI 2023-24 ndj 2023-24 Fttnd¥ 2023.24 ToiDI 2022.23 1 unJ5 nds £000 £000 Poti¢nt5 Wcifnrc & omeniiies 139 1,719 1.858 523 Welfare & llmcnilics 23 517 540 430 Rc5caTch & Education 16 695 198 Coniribulions lo Nll.S Capital 65 224 289 883 Toilll 243 3J98 2.034 Page 23
IA Expendllure Oiber Ilnroirltted 201>24 £wo Resirl¢1r 2023- 24 Funds TotAI 2112J.14 Fundx Total 2022-27 Fund5 2023.24 Tr'undi GoYemJncc 78 79 ToiAI 78 78 Y9 Appllrilon 10 AIID¢*lrd ta R¢yldu¥l for Appnrllnn Totil 2023.24 Tr'und5 2022.2.1 Funds SalAnes Tini¢ Sp¢ni 46 CJOI'¢man¢¢ CJOI-emniic¢ (ioi¢min¢e 10 7fj 170 hpptsrilDn of t)Irrrl ('oili support C11% 202J-24 2022-23 £0 330 2.1 .160 24 68 Sub. T111 381 47 428 42ft 1.826 1.8S8 J23 540 430 R¢sebr¢h 099 198 fontnbuiioni i• Nlls f4pliAI 281 289 Sub. Tulil 3J39 J J98 2.Ib34 7B 79 T•i•l F.¥prndliurt J.720 184 J.904 2.141 Page 24
LIVERP Nl ITYH PITAL NH ND. FINANCIAL TAT MENTS 2023r24 GrAnis 10 rants io SiipiJDrt eniii 2023.24 £000 Ttsttsl 2023.24 T)'pc 5J 24 2023-24 2022.23 £000 Ptsiirnt8 IV¢lfDr¢ & omMiiiies 1.826 32 521 StllFWtlfw¢ &. wn¢ns1i¢5 519 12 430 ReseBr¢h 699 12 198 283 289 88.3 Toi•l J J27 59 3J98 2,0.A4 C?fAnis I T0141 2022.23 £000 1023.24 £000 2.721 1.9B4 lJnii'cTiiiy of l.i¥'¢rpwl 40 95 2.024 ('liniex In RNourie% Avll•blt for l.'hHrlty Ilst Rxtrltltd 201J.24 F.ndowmeni 21I2J.24 I'undi £000 2023.24 'und¥ 2023.24 £000 £o(H) IA9} AiJ¢ly 7 Th¢r¢ no fixed ass¢ii ofilie ¢litsriiy Page 25
OL UNIVER ITYH PITAL RITABLE F ND- FINAN TATEMENT 20231 An81)'sis ofiiixe èlssct Ini'tstmtnts 2023.24 2022-23 £000 I'.ixed Ass¢1 Invisini¥nts'. £000 Mark'ei valu¢ ai 31 Mllrch 2023 9.700 CiiftLd froni AUII 8(18 LL55.' Disposols oi corryÈng valuc 17.4641 12.8351 Add,. Acquisiiions oi ¢ost 2.829 NLI goiii I Ilossl on rwvalualioii 671 1343) MaTkcl vnluk ui 31 MRrcli 2024 9.921 10.159 I lisloric cost ui 31 Miirili 2024 ¥,746 9.332 8.2 Markei VDIUL ft131 Mar¢li'. Ilild in Uk £iioo 2023.24'1'ulAI 2022.23 Ti)Inl £000 £000 IIiv¢51niL'nis lisli(l 011 tlIL. %inck l..xcliDngi 9.718 9,7111 9.900 Cush hLld ILS part ofilie invL.qimLlli piirtfolio 203 203 259 9,921 10,159 Inil Ili18n¢c ci'cn15 NunL Page 26
RP Rl ND. FINAN IAL TATEMENT 20 Total ai al 31 4lilRC.'112024 £O(H) An*l}sis of DeblDrs MARCII 2023 £000 Amollnls falling du¢ i%iihin on¢ }ear'. Pr¥p?>in¢nis Accrued income 4.46 -182 Toial d¢bioT% fallinb du¢ i%iiliin on¢ >¢aT 4.48 382 10.2 Aniounis fallinb due o%¢r onL' >ewi '. TO11il debtors fli Ilinb diie llncr MOTC Ilinn one >Cii T Toinl dehiorn Anily&li OfcrtdlirS 41AIIC'II 2024 £oNJ MARCII 202.1 £ODO 916 Ac¢ruals 2,298 4.022 A¢rrun15 475 'I'otxl crtdlilrs 4,497 Page 27
LIVERPOOL UNIVERSITY HOSPITALS NHS CHARITABLE FUND- FINANCIAL STATEMENTS 2023124 AD#ly$is bf Fundi 12 Fndowrnent Fundj Jl.OJ.24 Ilalanco 11 klarch 202.1 In¢omin8 Resources R¢sour¢¢s ExpcKded Gains lllld BAIAnct 31 IAt¢h 2024 Tnn$fcrs 000 £000 £000 £000 £000 £DOO NI A DDiirs 18 S I I, Cooke Dr J n¢rn51Clll Nlr N (iibbtrii 40 80 h2 NRmt of eitrli)IlTrn of ihe nlurt purpo%t of t4¢h fwn rnl. Tr.ndnwnitnl [..unl Jl.03.24 Nli N Gibb¢n r Ans¢11 12.3 Tr:ndmwmtni 31.03.2J I..1nded lrrh 2023 £000 £000 £000 £000 S I V C'ookr Dr J 1ScrnJiciii Nlr N (iibbon 40 J9 h¢rslll Toiol 77 80 12.4 Name olfund Doscrlptloll ofthi niture and purpoye oftAch fund tnii¢rl*l M A DDVICS Bed end0Mei fund for Poiicnls W¢ifore funds- S I I, Cookc Ilolidlly fuTrd for f%uFSe5 t)rJ EJcrn5fCIII Rl.lJll Coni'Dlcsccnr¢ and rec4110 fund 31.03.23 Nlr N GibbTrB AnDwil IlrDlosy Srholllrship DT An5¢11 To PTQi'5d¢ 4 iTBinirt8 bw5ary itt ¢¢08nili¢n of nvtsittg ¢x¢¢ll¢rt¢¢ Page 28
RPO L UNIVER ITYH PITALS NHS HARITABLE FUND. FINAN IAL TATEMENr 023124 FyudiJl.03.24 Ewjnce JI 12r(h 2ts23 Inwmin R¢soufCQS R¢sQV¥f<S l*t(h 21124 £n(xi Ix Lndocnnologi Fu fi2 460 441 HI Ull TrJniplJnt Tr-und J77 J?4 Iirill 47 (hh¢ 32$ Total M¢iinrt¢d 74 6MIO To1 lunOI Jl.OJ,24 Kl.1111 TwIpIt 12.7 b'undiJl.OJ.U lTh¢onli l.iryndtd Trllnif¢ 2fi •S4 HIAlIUlltiiii¢ Py4XTr5f (hk 4,7fv1 JJI4 7,7NI Total Nime orrund Fund chanlJbl¢yutW5r rt11 ?lIeorth£ Blthd FundsJl.QJ.lJ Ah) chanbI( pur[¥¢ tyl¥ih¥ lo I)11111 SCn1tei Fvtthc publi¢ knofil Ophih1i¢ 5(ah Rl.Ull St P].1 Lic Urtit Forth¢ ll¢forRI.I..l leNt$s¢V8 from si¢KThtssd d]lr¢[it1crrtt1 ForBrt Nle Nol Fund Si Paul'1Gr Ani chxntsblr PUryklK r¢lAtingtD RLUII phIOI08! Llnil Rl.Ull TransplT FuDd i ¢hJntsb1¢5Ws¥ r¢118 ID R TMSp1t L'nil RIABLII G<ll(r Ani chanLthl¢py r¢11 ts) Rol Li1¢¥1 L Bro&[¢( Uniirr411! lknplLs Page 29
LIVERPOOL NIVERSITY HOSPITALS NHS CHARITABLE FUND- FINANCIAL STATEMENfs 2023124 ConilTrienclos ij Thtrc Hrrr ronlillgenl ass5 or liibiliites for the ¢htrity iTr¢ludcd in rhc icrouni5'. Comrnl¢menls, 14.2 P¢nTrni Truiiee tiptniN relmburi¢ 202&24 2022.23 Oili¢r Ip1¢Th5¢ ¢Jc5£ribel 16 17icrc wni no Truiiec reniunerfiiion Thtrt WEre no ITDniacliuni with ll Tru51ee orconnceitd pcrsoni in Eny p¢rsonhl ¢apacilJ Trlleg lThdeMnli) Iniurante {r11rt$ .SccurvJ •ilni *sJeis Page 30
LIVERPOOL UNIVERSITY HOSPITALS NHS CHARITABLE FUND- FINANCIAL STATEMENTS 2023124 Organls•LIoTrs Nimt. naivr¢ ofconncciion. 2021.24 2022-23 Tumoirrvf Conne(ied Nei Piofitl Ttsrno¥'ct of Connccicd cl Prvfi dcillils of lln) qUlL lificjtions Loss for ih OrBanisDtion OtBanisAiion Conneeied Orbianislliion l.i%crpuol uniseisiry1105pltals Nlls l.I' 1.281.857,0 15j.8JO.IYj> 1.173.144.( {.103,991,0001 RtlAityI p*ri> NelAlod p4riy irin51ciloni l)uiinu Ili¢ >¢•T non¢ of Ihv Tru51 lloird Dr mcmbcTS of ilie kn. InJnAu¢meni tslAff or pirties rclllicd io Ilicni lias Iind¢nik¢n Any niai¢riAI IMnsuGITon% li11 Ilrofcs5L¥T I. IVAll¢y. Non.l..x¢¢uiii'¢ li1vinr of Ili¢ T¥u51 ljollrd dunnB 2027124. li Dl$o Jti tinplo)¢¢ of lh¢ lJni%¢ys1ty ofi.lYcryyool. lh¢ ClIAriiy is ¢n%'olv¢d SI 41 11)¥5.7.1? Page 31
Independent auditors, report to the trustee of the Liverpool University Hospitals NHS Charitable Fund Opinion We have audited the financial statements of the Liverpool University Hospitals NHS Charitable Fund (the 'charity'l for the year ended 31 March 2024 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied In their preparatlon Is applicable law and United Kingdom Accounting Standards, including FRS 102 "The Financial Reporting Standard applicable in the UK and Republlc of Ireland" (United Kingdom Generally Accepted Accounting Practice). In our opinion, the financial statements: give a true and falr vlew of the state of the charity's affairs as at 31 March 2024 and of its incoming resources and appllcation of resources for the year then ended; have been properly prepared in accordance with United Klngdom Generally Accepted Accountlng Practlce; and have been prepared in accordance with the requlrements of the Charitles Act 2011. Basls for oplnlon We have been appolnted as audltor under section 149 of the Charltles Act 2011 and report In accordance wlth regulatlons made under section 154 of that Act. We conducted our audit Sn accordance wlth International Standards on Auditing IUKI {ISAs (UKI) and applicable law. Our responslbilities under those standards are further descrlbed in the Auditors, responsibilities for the audit of the financlal statements sectlon of our report. We are independent of the charity Sn accordance wlth the ethlcal requlrements that are relevant to our audlt of the financial statements in the UK, includin8 the FRC'S Ethical Standard, and we have fulfilled our other ethical responsibilities In accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Concluslons related to golng concern In audltlng the financial statements, we have concluded that the trustee's use of the 80ing concern basis of accounting in the preparation of the financial statements is appropriate. 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 of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the trustee with respect to goln8 concern are described in the relevant sections of this report. Page 32
Independent auditors, report to the trustee of the Liverpool University Hospitals NHS Charitable Fund {continued) Other Informatlon The trustee is responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Independent Auditors, Report. Our opinion on the financial statements does not cover the other Information and, except to the extent otherwise explicltly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other Information and, in doing so, conslder whether the other information is materially inconslstent with the financial statements or our knowledge obtained in the course of the audit, or otherwlse appears to be materially misstated. If we Identify such material Inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement In the financial statements themselves. If, based on the work we have performed, we conclude that there Is material misstatement of this other informatlon, we are required to report that fact. We have nothing to report In thls regard. Matters on whlch we are requlred to report by exceptlon We have nothlng to report in respect of the followlng matters where the Charltles {Accounts & Reports) Regulations 2008 requlres us to report to you if, In our oplnion: adequate accountlng records have not been kept; or the flnancial statements are not In agreement with the accountlng records and returns; or certaln dlsclosures of trustee's remuneratlon specified by law are not made; or we have not received all the informatlon and explanations we requlre for our audit. Responslbllltles of the trustee As explained more fully in the Statement of Trustee's Responsibllitles, the trustee is 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 trustee determines 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 trustee is 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 the trustee either intends to liquidate the charity or to cease operations, or have no realistic alternative but to do so. Page 33
Independent auditors, report to the trustee of the Liverpool University Hospitals NHS Charitable Fund (continued) Auditors, responsibilities for the audlt of the financial statements We have been appointed as auditors under Section 149 of the Charities Act 2011 and report in accordance wlth the Act and relevant regulations made or having effect thereunder. 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 auditors, report that includes our opinion. 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, indivldually or in the aggregate, they could reasonably be expected to Influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance wlth laws and regulatlons. We design procedures in line with our responsibilities, outllned above, to detect materlal mlsstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detectlng Irregularities, including fraud, is detailed below. Based on our understandlng of the charlty and sector, we Identifled that the principal risks of non- compliance with laws and regulations related to UK tax leglslatlon and regulations whlch govern the preparation of financial statements, and we consldered the extent to which non-compliance might have a material effect on the financlal statements. We also consldered those laws and regulatlons that have a direct impact on the financial statements such as the Charltles Act 2011. We evaluated management's Incentives and opportunities for fraudulent manipulatlon of the financlal statements {Includln8 the risk of override of controls), and determined that the principal rlsks were related to postin8 inappropriate journal entries to Increase Incomlng resources, through management blas In manipulation of accounting estimates or accounting for significant transactlons outslde the normal course of operations. Audit procedures performed included: Enquiry of management around actual and potentlal litigation and clalms and Instances of non-compliance with laws and regulations; Auditing the rlsk of management overrlde of controls, through testing journal entries and other adjustments for appropriateness, testing accounting estimates (because of the rlsk of management bias), and evaluating the rationale for significant transactions outslde the normal course of operatlons; Reviewing financial statement disclosures and agreeing to supportlng documentatlon to assess compliance with applicable laws and regulations; and Review of trustee meeting minutes. A further description of our responsibilities is available on the Financial Reporting Councll's website at: htt www.frc.or auditorsres onsibilities. This description forms part of our auditors, report. There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, 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. Page 34
Independent auditors' report to the trustee of the Liverpool University Hospitals NHS Charitable Fund (continued}
Use of our report
Charities Act 2011 and for no other purpose. Our audit work has been undertaken so that we might state to the charity's trustee those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by iaw, we do not accept or assume responsibility to anyone other than the charity and the charity's trustee as a body, for our audit work, for this report, or for the opinions we have formed. Ponratt Bd + Co Cinticl Jason Leach FCA (Senior Statutory Auditor)
Bennett Brooks & Co Limited
Chartered Accountants and Statutory Auditors
Eligible to act as an auditor in terms of Section 1212 of the Companies Act 2006 St George's Court
Winnington Avenue Northwich Cheshire CW8 4EE
5 December 2024
Page 35
Liverpool University Hospitals Charlty Appendix A Liverpool University Hospitals Charity Governing Document Page 36
Liverpool University Hospitals Charlty Table of Contents Page About LUH Charity Charitable Purpose Governing LUH Charity The Charitable Funds Committee 38 38 39 40 The Grant Making Panel The Small Grants Group LUH Charity Grant making Process - Summary Decision Making Managing Conflicts of Interest Types of Funds Held Details on financial accounting and statutory returns Ethical, Sustainable Investing Managing Risk Policies and Procedures 40 40 41 43 43 44 45 46 46 47 Due diligence, monitoring and verification of end use. Closing LUH Charity. Appendices 48 48 49 Terms of Reference Charitable Funds Committee Terms of Reference Grant Making Panel Small Grants Group Essential Information for the Corporate Trustee and Charitable Funds Committee Members 50 54 56 58 Trustee Checklist 59 Page 37
Liverpool University Hospitals Charlty 1 . About Liverpool University Hospitals, Charity Liverpool University Hospitals, Charity (LUH Charity) is registered with the Charity Commission #1047988 and has a Corporate Trustee - the Liverpool University Hospitals NHS Foundation Trust Board. The principal office is in England, located at Liverpool University Hospitals Charity, Royal Liverpool Hospital, Mount Vernon Street, Liverpool, L7 8YE. Its trustee arrangements have been established by the Secretary of State for Health and Social Care under NHS legislation and LUH Charity is established for charitable purposes relating to the NHS and the individuals responsible for ensuring that trustee duties are fulfilled are appointed by the NHS. LUH Charity was formed on 1 st April 2022 through the transfer of the assets of The Aintree University Hospital Charitable Fund to the Royal Liverpool & Broadgreen University Hospitals NHS Trust Charitable Fund through: the completion of a transfer deed the closure of The Aintree University Hospital Charitable Fund the renaming of this combined charity to Liverpool University Hospitals NHS Charitable Funds the rationalisation of the funds to reflect the new site-based structure (Aintree, Broadgreen, Royal). deregistering of the multiple linked charities 2. Charitable Objects and Purpose Object: Donations received by LUH Charity may be expended on 'any charitable purpose or purposes relating to the National Health Service wholly or mainly for the service provided by Liverpool University Hospitals NHS Foundation Trust. The Charitable Purpose of LUH Charity was refreshed on 11th January 2024 to provide greater clarity to donors and support decision making when grant funding.. To support high quality patient care and staff health and wellbeing beyond that which the NHS provides by generating charitable income to: 1. Improve the care environment and patients, experience, 2. Provide medical equipmenusystems that are in addition to minimum standards required of the service. 3. Fund research, innovation and education programmes that directly contribute to the care of LUHFT patients. 4. Fund specific staff health andlor wellbeing projects. Page 38
Liverpool University Hospitols Charlty 3. Public Benefit In both fundraising and grant making, the Trustee (and its delegates) ensure that the public benefit requirement is met.. Benefit must be identifiable and capable of being proved by evidence where necessary and which is not based on personal views. Benefit the public in general, or a sufficient section of the public and not give rise to more than incidental personal benefit. 4. Governing LUH Charity Charlty Commlsslon Secretary of State for Health and Social Care Corporate Trustee Charltable Funds Commlttee ran nB ane The Charlty Commlsslon The Charity Commission is responsible for: registering eligible organisations in England and Wales which are established for only charitable purposes. taking enforcement action when there is malpractice or misconduct. ensuring charities meet their legal requirements, including providing information on their activities each year, making appropriate infonnation about each registered Gharity widely available to the public providing guidance to help charities run as effectively as possible. providing online services for charities. Pase 39
Liverpool University Hospitals Charlty The Corporate Trustee The Board of Directors of Liverpool University Hospitals NHS Foundation Trust (voting members) is the Corporate Trustee and in this role: the Board has a shared understanding of and commitment to LUH Charity's purposes and can articulate these clearly. the Board can demonstrate that LUH Charity is effective in achieving its charitable purposes and agreed outcomes, It18 responslble for,. Approving LUH Charity's Annual Report, Financial Statements and Charity Commission annual return Delegating selected authorities, as set out below, to the Charitable Funds Committee Appointing or removing members of the Charitable Funds Committee Approving the Governing Document or any amendments made therein. Receiving and reviewing the Charity Commission Trustee Checklist Undertaking any training necessary to remain compliant with its obligations as the Corporate Trustee. Closing LUH Charity. 5. The Charltable Funds Committee (CFC) The Charitable Funds Committee is convened with delegations from the Corporate Trustee and is responsible for the governance of LUH Charity, ensuring it complies with the requirements of the Charity Commission and other relevant regulatory and statutory frameworks, The committee also ensures that charitable donations are administered efficiently and legally and directed promptly towards appropriate charitable activity in accordance with the donor's wishes. While this Committee has been established by the Board of Directors to carry out specific functions as described, it is important to note that the Board retains ultimate responsibility for discharging its duties and responsibilities as LUH Charity's Corporate Trustee. To that end, the Board of Directors has absolute discretion over the activities and decisions of the Committee. The Terms of Reference for the Charitable Funds Committee are available at appendix la. The Grant Making Panel This committee supports the Charitable Funds Committee with the assessment of grant applications to ensure that funds are disbursed appropriately and in a timely manner. The Charitable Funds Committee has delegated authority to the GMP to review and approve grant applications >£1 OK and <£50K inc. VAT. It further reviews all bids more than £50K to ensure appropriateness ahead of the applicant presenting to the quarterly CFC. I Charity Governance Code Page 40
Liverpool University Hospitals Charlty The terms of reference for the Grant Making Panel are available at appendix 1 b. The Small Grants Group The small Grants Group meets monthly and is designed to more frequently approve small applications which are often patient experience related and therefore time sensitive. The SGG has delegated authority from CFC to approve grant applications less than £1 OK inc. VAT. The terms of reference for the Small Grants Group are available at appendix 1 c. Emergency Grants up to £1 OK only Emergency grants can be provided to support patients and their carerslloved ones in specific circumstances, such as end of life and to support complex discharge. The Head of Fundraising has discretionary approval up to £1 k inc. VAT. All other requests must be approved by the Director of Communications or Director of Finance in case of absence. In all cases, emergency approvals must be accompanied by an application form and be reported through the Small Grants Group for completeness. Page 41
Liverpool University Hospitols Charlty LUH Charity Grant making Process - Summary Declarations of interest in any of the applications being considered will be taken at the beginning of all meetings. Members of any of the panels that work in that service or have any associated interest will be excluded from the decision-making process for that bid. pp car on or un U¥bd•r £IOK Bld appIratIOnS revlEw¢d bl.rnoni*lybv Mikln8 Ctymffjltt?• Appllc•tlon l•rfun ov•r £50K Commlltee declslon makln£ bastd on mairlx scoro Smill GAn15 Group Dlds ovri ÉSOK reviewed by GM Ctiee lo Revlew b¥ Giant MJklnR Commillrt lor Allendquirlorly CFC to make Blds undci 150K IlpprovalslRrle(IlonslRr4ursts IOT moro summ.iiy ieporl prepJred for Qu4rlorly¢FC lor lThloimJlion wllh nexi steps 5ummaFy Repori prepartd lor quariorly CFC for mole Inl•rmation V Follow up dales dlaristdlor HOF io lollow up on ouleOrnCS lor nnUal Imp•<t report, 5n¥51 tp CFC lo prt5onl chlrllablo slory Ip lolluw up ori outcomes for bl-•nnual Impi(t roporl Follow up dales diaFlstd lor HOF 10 follow up on oui£onits lor bl.4nnual Imp4tl rèport, Invlted to CFC to pre5•nt (h•iltable story Page 42
Liverpool University Hospitals Charlty 6. Decision making When decisions are made, members of the Charitable Funds Committee must: Act within the legal responsibilities representing the corporate trustee. act within LUH Charity's purposes act within committeelgroup powers as described in this governing document. act in good faith, and only in LUH Charity's interests ensure members are sufficiently informed, taking any advice if required. take account of all relevant factors and ignore any irrelevant factors. manage conflicts of interest (see below) reference the decision-making matrix provided for grant making decisions. Declslon maklng on 'exchequer' and 'charitable' spendlng: There is a clear open, and independent process of decision making by the Charitable Funds Committee (and its delegates) to support decisions to apply charitable funds in a specific way: The Charitable purpose of LUH Charity solely guides decision making on grant-funding. Decisions are made in the interests of LUH Charity to further its charitable objectivel purposes. An assessment of the public benefit is considered. An assessment of how far LUHFT NHS duty of provision extends. The scoring matrix is used as a core assessment tool and the threshold should be reached or exceeded. An appeals proGess enables rejected applications to be assessed independently. 7. Managing Conflicts of Interest LUH Charity recognised that there are two common types of conflict of interest.. Flnanclal confllcts: These conflicts happen when a member representing the corporate trustee, or person or organisation connected to them, could gain financially or secure something of value from a committee decision. Loyalty conflicts: These conflicts happen when the representative might not be able to make decisions that are best for LUH Charity. Declarlng conflicts of interest. The Corporate trustee maintains and updates a register of interests of Board members, from whom members of the Charitable Funds Committee are selected. It also adopts the NHS Managing Conflicts of Interest Policy. The register of Board Members, interests is available to view here,. Board of Directors- Re ister of Interests . Liver ool Universi Hos itals NHS Foundation Trust liver oolft.nhs.uk At Charitable Funds Committee, and its delegated Grant Making Committee and Small Grants Group, the chair should ask attendees to identify, declare and record conflicts at the start of all meetings as a standard agenda item. Page 43
Liverpool University Hospitals Chorlty Managing conflicts of interest. At all times corporate trustee representativeslmembers of the Charitable Funds Committee or its delegated committeeslgroups will act in the best interest of LUH Charity As a minimum, the conflicted member should.. leave relevant discussions. not take part in the decision or vote not be counted in the quorum. Recordlng confllcts of interesL The Chair will instruct that the following are recorded: what the conflict was. who or what it affected. when it was declared how it was managed. Managlng serlous confllcts of Interest. Serious conflicts may occur where the majority of the members have a conflict - this is especially relevant to NHS charities with a corporate trustee. This could include.. the majority of members have a commercial interest in LUH Charity decision. the decision involves significant money or risk, and there is a conflict, In these types of situations, the Charitable Funds committee will consider the following options: remove the conflict. change the plan. ask the corporate trustee to nominate an additionallreplacement member that is not affected by the conflict. take legal advice. in very high-risk cases ask the Charity Commission to authorise the decision. 8. Funds held by LUH Charity LUH Charity holds three types of funds: Restricted funds - these must be used for specific purposes such as: specifications by the donor(s) at the point of donation - including bequests. by the terms of a public appeal the terms of a grant endowment funds, permanent endowment, or expendable endowments The Charity Commission specifies: Funds should only be classified as restricted, if they are subject to trust£ In praGtiGal and accounting tenns the implication is that donations should htt www.chari Section2 Fund accountlng sertion d $353 of the Charlties Act 2011 50r .or Page 44
Liverpool University Hospitals Churlty be presumed to be unrestricted (and not subject to a 'trust) unless the donor plaGes an unequivocal restriction on it, for example by saying it must be used, or 'can only be used, for a specified purpose or by giving to a specific appeal. For a particular donation to be treated as restricted requires positive evidence of restriction. In most cases trustees should make this classification only where there is written evidence of an intention to restrict, for example a will, a letter from a donor, tenns of a grant, appeal literature. Note: Employees of the NHS Trust are not entitled to solicit funds for restricted purposes that they have themselves decided, for example to fund research that they are conducting. If a donor imposes such a restriction it will fall to the corporate trusteelcharitable Funds Committee to implement the restriction Unrestricted funds (General Purpose Fundls) These are funds which are given to LUH Charity (whether solicited or unsolicited) without any restrictions imposed by the donor or grant maker. They could include proceeds of an appeal, provided that a disclaimer to the effect that the appe81 proceeds may be used for other purposes of LUH Ch8rity in th8 8V8nt th8t the 8ppeal purposes cannot be fulfilled. Unrestricted funds are the funds of a charity that may be spent at the discretion of the Charitable Funds Committee or its delegates, in furtherance of the objectives of LUH Charity in which the funds are held, without any distinction between capital and income. Deslgnated funds The Charitable Funds Committee or its delegates may exercise discretion to set aside part of the unrestricted funds for designated purposes. Designation of funds may also be used where donors have expressed a preference without imposing a 'trust'. Designated funds remain unrestricted since the Charitable Funds Committee can remove the designation at any time. Designated funds continue to be held ultimately for the overall purpose of LUH Charity. 9. Details on financial accounting and statutory returns The corporate trustee is responsible to ensure LUH Charity's: assets are properly used. funds are spent effectively. financial affairs are well managed. The Charitable Funds Committee, under delegated authority from the corporate trustee, is responsible for grant making (according to charitable object and purpose), reviewing LUH Clas$5fying funds Sectlon 6.2 https://www.Eov.uk/government/publlcatlons/nhs-charlties-guldance/nhs-charlties- guldance S Section b. The agency of staff in receiving donations NHS tharities uidance- GOV.UK ov.uk Page 45
Liverpool University Hospitals Churlty Charity's financial position, its investment policy and performance and reviewing the reseNes policy and status. It also reviews statutory returns for presentation to the corporate trustee (the annual report, accounts and Charity Commission annual return.) It also reviews all financial risks (risk register), appoints LUH Charity's auditor and authorises any internal audits. As detailed in the cycle of business, a finance and investment update are a permanent agenda item. Grant making reports, according to delegated limits set out in this document, are received for assurance and grant applications beyond delegated limits are approvedlreturned by the committee. The risk register is received per cycle and any elevated or new risks are escalated as described in section 11. 10. Ethical, Sustainable Investing The corporate trustee and its delegates are responsible for ensuring that LUH Charity's funds are invested in an ethical, sustainable manner and that the highest levels of corporate governance are observed. An investment policy is in place and investment advisors are appointed by the Charitable Funds Committee. A regular investment update is received according to the cycle of business. Elements that the committee will consider when reviewing investments include Impact on,. climate employment practices sustainability human rights community impact executive compensation board accountability. Managing risk LUH Charity manages risk using the corporate trustee's organisational risk management system, together with a risk management policy. Key elements include, but are not restricted to, significant risks to the delivery of LUH Charity's strategic objectives (see also Trustee Checklist in the appendices) e.g, current strategic plan and forward planning use of resources operating costs management reputational risks supervision of fundraisers delegated limits and decision making capacity and capability of inhouse fundraising team Page 46
Liverpool University Hospitals Charlty safeguarding volunteer management arrangements with commercial partners donor due diligence third party agreements counter fraud and crime compliance with statutory obligations effectiveness of financial controls essential policies. Overview and assurance: All risks are reviewed at monthly Charity team meetings. Risks 10+ are reported to Charitable Funds Committee meetings. Risks 12+ are also escalated to the Corporate Trustee via the CFC Chair's assurance report. 12. Policies The following core policies are in placelin development at LUH Charity which adopts the poIiGies of the Corporate Trustee unless indicated. Safeguarding (adultslchildren) Volunteering (volunteer services) Complaints and Concerns Media and social media policy Managing VIP and Celebrity Visits Managing Conflicts of interesu Anti-Fraud, bribery and corruption Reserves Policy Investment policy Income policy Fundraising policy Expenditure policy Research policy Privacy policy Equality Impact analysis Data Protection Whistleblowing Register of Corporate Trustee member interests Refusals, Refunds and Returns policy. Risk Management Policy - LUH Charity Gifts in Kind SOP Page 47
Liverpool University Hospitals Charlty 13. Due Diligence, Monitoring and Verification of End Use The Charitable Funds Committee members andlor its delegates have effective processes in place to provide adequate assurances about the identity of donors, particularly substantial donors, and to verify this where it is reasonable and necessary to do so. This is embedded in LUH Charity fundraisinglaccounting practice (with the assistance of NHS Counter Fraud if required) and the teams ensure.. they know who those individuals are. where the risks are high, appropriate checks are carried out. they are able to demonstrate that charitable funds have been used for the proper purposes for which they were intended. there is an audit trail showing the expenditure of funds by the applicant. the funds were received by the applicant and if the applicant forwarded those funds on, there is an audit trail to show this. the applicant has actually delivered the project and charitable work expected. LUH Charity's funds have been used for the purposes for which they were intended, and the beneficiaries identified by LUH Charity have benefitted. any concerns that need to be dealt with are identified. 14. Closure or dissolution of LUH Charity In the event that LUH Charity needs to be dissolved, the following applylare in place: 1. A rlngfenced reserves fund is held to cover winding up costs including operating costs including pay, non-pay, governance, insurance, professional fees and any redundancy payments if applicable, 2. The ability to transfer the balance of funds to another charity (or other charities) with objects that are the same or similar to LUH Charity's own, for the general purposes of the recipient charity (or charities),. or to any charity for use for particular purposes which fall within LUH Charity's objects. 3. The winding up decision must be recommended by the Charltable Funds Committee to the Corporate Trustee for resolution. 4. Prompt notification to the Charity Commisslon that LUH Charlty has been dissolved and submit LUH Charity's final accounts. 6 Charity Commission Page 48
Liverpool University Hospitols Charlty Appendices 1. Terms of Reference a) Charitable Funds Committee b) Grant Making Panel c) Small Grants Group 2. Essential Information for the Corporate Trustee and CFC 3. Trustee Checklist 4. Version control tracker Page 49
Llverpool University Hospitals NHS Foundation Trust Charitable Funds Committee- Terms of Reference Authority/Constitution The Committee is constituted as a standing committee of the Trust's Board of Directors. Its constitution and terms of reference shall be as set out below, subject to amendment at future Board of Directors, meetings. The Committee is authorised by the Board to act within its terms of reference. All members of staff are directed to co-operate with any request made by the Committee, 3. The Committee is authorised by the Board of Directors to instruct professional advisors and request the attendance of individuals and authorities from outside the Trust with relevant experience and expertise if it considers this necessary or expedient to the carrying out of its functions. 4. The Committee is authorised to obtain such internal information as is necessary and expedient to the fulfilment of its functions. Board of Directors . Board ol Truslees .Approves Ch8rllable Funds Commlllee terms ol reference. Annual Report and Flnanclal Slalemenls Charitable Funds Committee . Ensures Ihe requlremenls of Ihe Charlly Commlsslon and other relevant requlalory and slalulory Irameworks are complledwllb . Ensures charllable donallorss are admlnlslered elllcleniiyanfj 10 rlalel .Approves grant appiicallons of more than Chief Finance Officer .Treasurer lo the Charllable Fund5 Commlllee . Ensures mananemenl and accounllnA arianllemenl8 are ompllanl wllh le L8110n Purpose 5. To ensure the requirements of the Charity Commission and other relevant regulatory and statutory frameworks are complied with and to ensure that charitable donations are administered efficiently and legally and directed promptly towards appropriate charitable activity in accordance with the donor's wishes. 6. The Committee will ensure that risks relevant to the Committee's purpose are minimised through the application of the Trust's risk management system via LUHFT Charity's Risk Register. This will include but not be restricted to the consideration of significant risks to the delivery of the Trust's strategic objectives, through review and scrutiny of the relevant risks from the Board Assurance Framework (BAF) and the divisionallcorporate risk registers requiring consideration in accordance with the risk management poliGy. Page 50
Liverpool University Hospitals NHS Foundation Trust Duties 7. In order to fulfil its role, the Committee will undertake the following: Maintain and approve appropriate policy documents to ensure that the legal and administrative duties of the Corporate Trustee are met on behalf of the Board of Directors. Monitor charitable funds, approve the creation of new funds within the umbrella fund and ensure a periodic review of existing funds takes place. Ensure appropriate procedures are in place to control expenditure and ensure it is in accordance with the objectives of the funds. Establish a strategy for charitable funds and, on the basis of professional advice, determine an investment policy within this strategy. Review the Annual Report and Financial Statements and ensure consistency with the Charity Commission's Statement of Recommended Practice. Receive the auditors, report on the Annual Report and Financial Statements and recommend their formal approval to the Board of Directors. Oversee the administration of the Charity and ensure its spending is in accordance with the objectives set by the Board of Directors as Corporate Trustee and supports the delivery of the Trust's strategic priorities: Great Care; Great People; Great Research & Innovation; and Great Ambitions. Ensure proactive management of the pipeline of funding applications and that the Charity's income does not accumulate unless there is a specific future use in mind, Act in the best interests of the Charity and in such manner as meets the requirements of the Charity Commission. Establish and maintain a charitable funds risk register. Authorise charitable funds expenditure over £5000. Refer any matters of concern to the Trust's Board of Directors. 8. Whilst the Committee has been established by the Board of Directors to carry out specific functions as noted in this document, it is important to note that the Trust retains ultimate responsibility, via its Board of Directors, for discharging it duties and responsibilities as the Charity's Corporate Trustee. To that end, the Board of Directors has absolute discretion over the activities and decisions of the Committee. Page 51
Liverpool University Hospitals NHS Foundation Trust Membership 9. The Committee shall be composed of the following members: Non-Executive Director (Chair) b, Non-ExeGUtive Director c. Chief Finance Officer d, Chief Nurselmedical Director (shared membership) e. Director of Communications 10. The following are required to attend and participate in the meetings of the Committee in a non- voting capacity: a. Assistant Director of Finance (with responsibility for Charitable Funds) b. Finance Manager (Charitable Funds) c. Head of Fundraising d. Chief People Officer e. Director of Strategy f. Divisional representative (at the request of the Committee) g. Professional Investment Advisorlmanager (at the request of the Committee) h. Internal or External Audit (at the request of the Committee) 11. The Committee will be deemed quorate when 2 out of 5 members including the Non-Executive Director (chair) are present (tele-conferencing will be permitted, if necessary). 12. Members of the Board of Directors to attend one meeting a year as a minimum ex officio. 13. Other management or clinical staff may be co-opted or requested to attend for specific agenda items as necessary, Requirements of Membership 14. Members of the Committee must attend at least 75 % of all meetings each financial year but should aim to attend all scheduled meetings. Attendance at the Committee will be recorded and monitored. Equality Diversity & Inclusion 15. In conducting its business, the Committee will at all times seek to promote its commitment to equality and diversity by the creation of an environment that is inclusive for both our workforce, patients and service users including those who have protected characteristics and vulnerable members of our community. Reporting 16. The minutes of all meetings of the Committee shall be formally recorded and submitted to the following meeting for approval. Page 52
Llverpool Universlty Hospltals NHS Foundation Trust 17. The Committee will report to the Board of Directors after each meeting via an assurance report which will provide an overview of the discussions at the meeting, details of any matters in respect of which actions or improvements are needed and decisions taken. 18. The Committee will report annually to the Board of Directors in respect of the fulfilment of its functions. in connection with these terms of reference. This will include an evaluation of its performance according to a standardised framework and process. Administration of Meetings 19. Meetings shall ordinarily be held quarterly with additional meetings held on an exceptional basis at the request of the Chair. 20. The Director of Corporate Affairslcompany Secretary will make arrangements to ensure that the Committee is supported administratively. Duties in this respect will include taking minutes of the meeting and providing appropriate support to the Chair and Committee members. 21. Agendas and papers will be circulated at least 5 working day8 (or 4 working days plus a weekend) in advance of the meeting. 22. Minutes will be circulated to Committee members as soon as is reasonably practicable. Review 23. The Terms of Reference of the Charitable Funds Committee shall be reviewed by the Committee and submitted to the Board of Directors for review and approval at least annually. Page 53
Liverpool University Hospltals NHS Foundation Trust Liverpool University Hospital Charity Grant Making Panel Terms of Reference Authoritylconstitution The Grant Making Panel is constituted by the Charitable Funds Committee (CFC). Its terms of reference shall be as set out below, subject to amendment at future CFC meetings. All members of staff are directed to cooperate with any request made by the Committee. Purpose To ensure the requirements of the Charitable Funds Committee are complied with to ensure that charitable funds applications are received, reviewed, assessed and approvedldeferredlrejected in line with the assessment process. Membershlp Assistant Director of Finance (Chair) Executive Managing Director (Aintree Hopsital) andlor Executive Managing Director (Royal Hospital) or a nominated deputy Chair of Medical Board Chair of St Paul's Eye Research Foundation Associate Director Organisational Development Head of Research and Innovation Head of Fundraising Finance Manager- Charity In attendance Assistant Charity Accountant Other management or clinical staff as required at the request of the panel. The panel will be deemed to be quorate when the Chair, at least one Executive Managing Director, at least one Head of Medical or Research or Innovation, the Charity Finance Manager and the Head of Fundralsing OR their nominated deputies are present. Dutles The Grant Making Panel will convene bi-monthly to., Receive charitable funds grant applications that are >£10K including VAT. Review and assess applications and make recommendations to the CFC for applications that exceed £50K inc. VAT. Reach consensus to approveldeferldecline applications based on the establishment matrix. Escalate any issues or concerns to the Charitable Funds Committee Review risk(s) associated with grant decisions and escalate if necessary. Act in the best interests of the Charity Page 54
Liverpool University Hospltals NHS Foundation Trust Delegated authority The Grant Making Panel has delegated authority from the Charitable Funds Committee to approve funding applications up to £50K inc. VAT. Reporting The decisions of all meetings of the Panel shall be formally recorded on an established template and submitted to the Charitable Funds Committee for assurance andlor escalation where required. Administratlon of Meetings Meetings shall ordinarily be held bi-monthly with additional meetings held on an exceptional basis at the request of the Chair and will be held either in-person or by electronic means. All applications will be submitted to the Panel at least three working days before the meeting, together with the standard assessment matrix. Decisions will be recorded and any escalationsladditions to the Charity Risk Register submitted to the subsequent Charitable Funds Committee. Review The Terms of Reference of the Grant Making Panel will be reviewed at least annually. Verslon Control Schedule Date Verslon no Maln changes proposed Date approved by CFC Page 55
Llverpool University Hospltals NHS Foundation Trust LUH Charity Small Grants Group Terms of Reference Authoritylconstitution The Small Grants Group is constituted by the Charitable Funds Committee (CFC). Its terms of reference shall be as set out below, subject to amendment at future CFC meetings. All members of staff are directed to cooperate with any request made by the Committee, Purpose The Small Grants Group meets monthly and is designed to quickly approve small applications which are more often patient experience related and therefore time sensitive. The SGG., Ensures the requirements of the Charitable Funds Committee are complied with to ensure that charitable funds applications are received, reviewed, assessed and approvedldeferredlrejected in line with the assessment process. Has delegated authority from CFC to approve grant applications less than £1 OK inc. VAT. Provides assurance through a comprehensive small grants, outcomes report provided to the next available Charitable Funds Committee as per the cycle of business. Membershlp Assistant Director of Finance Chair Associate Director of Organisational Development Director of Fundraising - St Paul's Head of Fundraising Finance Manager - Charity Clinical representative x 1 In attendance Assistant Charity Accountant Other management or clinical staff as required at the request of the Group. The panel will be deemed to be quorate when the Chair, the Charity Finance Manager and the Head of Fundraising OR their nominated deputies are present. Duties The Small Grants Group will convene monthly to: Receive charitable funds grant applications that are up to £1 OK including VAT. Reach consensus to approveldeferldecline applications based on the establishment matrix. Escalate any issues or concerns to the Charitable Funds Committee Review risk{s) associated with grant decisions and escalate if necessary. Act in the best interests of the Charity Page 56
Liverpool Universlty Hospitals NHS Foundation Trust Delegated authority The Small Grants Group has delegated authority from the Charitable Funds Committee to approve funding applications up to £1 OK inc. VAT. Reporting The decisions of all meetings of the Group shall be formally recorded on an established template and submitted to the Charitable Funds Committee for assurance andlor escalation where required. Administration of Meetlngs Meetings shall ordinarily be held monthly with additional meetings held on an exceptional basis at the request of the Chair and will be held either in-person or by electronic means. All applications will be submitted to the Group at least three working days before the meeting, together with the standard assessment matrix. Decisions will be recorded and any escalationsladditions to the Charity Risk Register submitted to the subsequent Charitable Funds Committee. Revlew The Terms of Reference of the Small Grants Group will be reviewed at least annually. Ver8lon Control Schedule Date Verslon no Maln changes proposed Date approved bv CFC 22.4.24 Added to Small Grants Group TOR Associate Director of Organisational Development Director of Fundraisin St Paul's Added to Grant Making Panel TOR Chair of St Paul's Eye Research Foundation Associate Director Organisational Development 22.4.24 Title change.. Chair of Medical Board Page 57
Liverpool University Hospitals NHS Foundatlon Trust Essential Information for the Corporate Trustee and Charitable Funds Committee Members O LUH Charity's objectslpurposes as set out in its governing document. / LUH Charity's aims and objectives. O Assurance that all of LUH Charity's activities further or support its purposes. O The extent to which LUH Charity benefits the public by carrying out its purposes. / Evaluation of the charitable funds committee effectiveness 0 Annual cycle of business in place including accounts, reports, presentations, applications and other materials rf Periodic skills, knowledge and experience evaluation of the Charitable Funds Committee members 0 Communications plan for those with an interest in LUH charity - donors, supporters, beneficiaries, partners, staff and volunteers. O Sufficient oversight and knowledge of the activities of external people and organisations acting on LUH Charity's behalf. O Access to any required guidanceladvice to ensure decisions are made In the best interests of LUH charity and its beneficiaries. O Management of conflicts of interests O Management of risk rf Assurance on the safeguarding process and policy, See also,. The Essential Trustee - Charity Commission 7 Charil ovemance finance and resilience.. 15 ueslions trustees should ask - GOV.UK ov.uk The essential trustee: what ou need to know what ou need to do- GOV.UK www. ov.uk Page 58
Llverpool University Hospitals NHS Foundation Trust Trustee Checklist Taking responsibility for LUH Charity's Fundraising: A Checklist for Trustee(s) Plannin effectivel We have set or a reed our fundraisin strate It reflects: our charit 's values the resources we use and the costs we incur in our fundraisin the ke financial and re utational risks we ma face We discuss it at our meetin monitor ro ress ' mana etheke risks s so that we can: ervisin our fundraisers We have considered and decided which fundraising issues we will not dele ate. We have effective systems in place so that: Our in-house fundraisin staff.. know what the are su osed to do, via written role descri are doin the ob successfull tions Our recruited volunteers., . know who the re ort to and who to a roach with roblems or concerns understand the boundaries within which they must work when representing our charit Our arran ements with an commercial artners: • full com I with relevant le al re uirements are in our charit 's best interests ro riate due dili ence is undertaken our fundraisin values and ex ectations are communicated the costs are ustifiable and can be ex lained ro er control is ke t of the mone raised the fundraisin communications to be used are reviewed •com liance with the a reement is monitored •an conflicts of interest are reco nised and dealt with. Protecting our charity's reputation, money and other assets We have effective s stems in lace so that: the reputational risks our charity may face in its fundraising are identified, assessed and mana likely donor, supporter and public perception is considered when income ex ectations and other oals are considered the legal rules and recognised standards which apply to our fundraising are followed we have considered whether our a our values are communicated to the the costs of our fundraisin are mana eal should have a seconda ur eo le who work on our fundraisin ed and ex lained ose Page 59
Liverpool Universlty Hospitals NHS Foundation Trust our fundraisin finance is lanned and monitored effective financial controls are in lace and followed risks of financial crime and fraud are reduced our charit is alerted to an sus icious donations our charity can stop (or authorise) any unauthorised fundraising activity which is usin its name serious incidents are re orted to the Commission, our data, name, ima elo o and intellectual ro ert olice and other a are rotected encie Following the law and recognised standards We have effective systems in place so that.. the Code of Fundraising Practice and other resources are used to find out about the legal rules and recognised standards which apply to our fundraising these rules and standards are followed Be open and accountable. We have effective systems in place so that.. any legal rules and requirements that apply to how our charity reports on an accounts for its fundraisin are com lied with our open and accessible complaints procedures are followed if concerns ar raised about our fundraisin our fundraising aims and achievements are clearly communicated to the ublic and to donors and su orters Page 60
endix B LIVERPOOL UNIVERSITY HOSPITALS NHS FOUNDATION TRUST ICHARITAIILE INVESTMENT MA.NAGEMENT GUIDELINES INVESTMENT OBJEcfivES To maximise total return through a diversified portfolio to an an acceptable level of risk, assets should be invested in a diversified portfolio which does not have excessive exposure to any specilic sector or industry. The portfolio should take into consideration ethical, health and sustaina bility issues relevant to the Trust. The portfolio should be in compliance with the Trust's investment powers as interpreted by the Trustee and in accordance with the strateL'Y agreed with the Trustee from time to time. In due course, the Trustee may amend the objectives and strategy. INVESTMENT PORTFOLIO 1.2.1 The Charity's investment portfolio is administei'ed by a professional Investment Management firin ori a discretionary basis and the manaiyement of the portfolio is delegated to the Charilable Funds Committee. The admini5tratiun of the portfolio is put out to tender every 5 years. 1.2.2 The Trustee has determined that the objective of holding the investment portfolio is to secure a long ierm total return on investments. 1.2.3 The total return target is CPI +4Yo over the lon8 term 1.2.3 In order to discharge Its duties appropriately, the Trustee has approved the following Stateinent of Policy which the contracted Investment Management firm must adhere to. STATEMENT OF POLICY l The prime investment objective will be to maximise financial returns within the context of achieving a maximum total growth between "Iiicome Yield" and "Capital Growth" bl The portfolio will be invested in a diversified multi-asset class portfolio and may invest in the following asset classes: Cash or near cash instruments, including Money Market Funds Fixed Income Investments., Government, Supranational and Corporate (individual bonds should not have a credit rating lower than BBBI UK Government securities, International sovereign securities & supranational bonds Listed Equities: UK & G lobal Structured Notes Collective Investment Funds Exchange Traded Funds IETFI Infrastructure PagTe 61
Commodities Real Estate Alternative Investments Diversif iers c} The Trustee has defined the overall level of risk in the portfolio as moderate, This means that while iiidividual investments may carry higher or lower levels of risk, a balanced approach to risk is required. dl It is intended that the maximum value of one equity holding will not materially exceed 7.5Y of the total equity value within the portfolio. el It is inlended that the maximum value of one Collective investment fund or ETF will not materi<illy exceed IO¢/o of the total equity value within the portfolio. f l The portfolio should be diversified by asset class, geography and sector. gl Speculative or hazardous investments will not be made. These include futures, options and contracts for differences,. including Contingent Liability Transactions, as these investments carry excessive risk. h) The following trading arrangements will not be entered into.. Trading "adventures" Collective Investment Scheme5 which are not regulated Collectlve Investment Schemes including Schemes operated by us or Associates il Careful consideration will be given to any ethical, health and sustainability Issues arising in respect of investments. Where it is felt that 7¢ n investment is in conflict with the Charity's objectives andlor Government policies, no investment will be made (Please refer to Ethical Inveslnient Policv) j} As a niinimum requirement, portfolio valuations will be presented to Charitable Funds Committee meeting's twice a year. (The Committee is able to informally access ad-hoc on-line valuations basis based upon the previous workin8 day's closing position, and also receive quarteily valuation reports.) kl Any ii)vestment which is not immediately realisable (within 10 days) requires approval from the Cliaritable Funds Committee. These should be minimised and only approved where there are significant benefits and minimal risk of requiring these funds prior to realisation. PERFORMANCE AND STRATEGY REVIEW 1.4.1 The Charitable Funds Committee will review the portfolio at each Committee meeting and receive a performance presentation from the Investment Management firm on an annual basis, as a minimum. 1.4.2 The performance of the portfoliolsl will be evaluated against a suitable benchmark measure approved by the Trustee. Long Term Target: CPI +4%
1.4.3 On an annual basis, the Charitable Funds Committee will review a three year income and expenditure plan in order that short, medium and long-term investment objectives can be determined. 1.4.4 Charity investment objectives and portfolio strategy will be reviewed annually and at any time that Ihe Charitable Funds Committee deem it appropriate. However, amendments to the inveslnient strategy must be approved the Board of Directors, as the Corporate Trustee. 1,4.5 Where it is considered that funds are likely to be spent within the next six months, they should not be made available for investment within the portfolio. 1.4.6 The issues on which the Chief Finance Officer shall be required to provide advice to the Charitable Funds Committee shall include: the formulation of Investment policy which meets statutory requirements and Department of Heath guidance with regard to income generation and the enhancement of capital value,. and which complies with any restrictions on investment choice contained within a ny relevant charitable deeds; the appointment of advisers, brokers and, where appropriate, investment fund managers and: the Chief Finance Officer shall recommend the terms of such appointments; and for which written agreements shall be signed by the Chief Executive; pooling of investment resources and the preparation of a submission to the Charity Commission for them to make a scheme; the participatlon by the Trust in cominon investment funds and the agreement of terms of entry, Review This policy will be reviewed on an annual basis.
endix C LIVERPOOL UNIVERSITY HOSPITALS NHS FOUNDATION TRUST CHARITABLE ETHICAL INVI:, STMENT GUIDELINES ETHICAL & SUSTAINAILITY OBJECTIVES Tlie purpose of this document is to set out how we wish for the investment portfolios to be managed in accordance with the values of the Trust. The Trust wish for the portfolio to reflect the values and ethics of the Charity. ETHICAL RESTRICTIONS 1,6.1 The trust wish for the portfolio to exclude direct holdings in certain sectors- below is the list of direLt holding exclusions, their definitions arid thresholds. Alcohol.. All companies deriving 5Yo or more revenue from the production of alcohol-related products, or tliose deriving 150/0 or more aggregate revenue f rom the production, distribution, retail and SLlI)ply of alcohol-related products, Gambllng: All companies derivin8 5Yo or more revenue from ownership ofoperation of gambling- related business activities, or those deriving 15Yo or more aggregate revenue from 8ambling- related business activities. Tobacco: All companies classified as a "Producer" or those that derlve 5Yo or more aggregate revenue f rom the production, distribution, retail and supply of tobacco-related products. Adult Entertainment: All companies deriving 5¥0 or more revenue from the production of adult entertainment matei'icils, or those deriving 15¥0 or more aggregate revenue from the production, distril)Iition and retail of adult entertainment. Armaments: Conventional Weapons: All companie5 derivinLy 5Yo or more from the production of conventional weapons, or those that derive 15Yo or more aggregate revenue from weapons systeins, components, and support systems and services. Nuclear Weapons: All companies that manufacture nuclear warheads or missiles, components, or delivery platforms for use in nuclear weapons. Controversial Weapons: All companies with any ties to controversial weapons, including companies involved in the manufacturer and production of cluster munitions, landmines, depleted uranium manufacturer, biological and chemical. Civilian Firearms: All companies classified as a "Producerf,, or those that derive 5Yo or more revenue from the distribution of civilian firearms.
Fossil Fuels: Any investment in f055iI fuels should be done on a best of sector basis from an environmenta I perspective. This will include all companies that have proven and probable coal reserves and/or oil and natural gas reserves used for energy purpose5. Reserves are considered to be used for energy purposes in the case of companies with the following Global Industry.Classification Standa rd IG ICSI classification: lal OIS, Gas and Consumable Fuels Industry Ibl Fnergy Equipment and Services Industry Icl Utilities Sector Idl Diversified Meta Is and Mining Sub-lndustry. ENVIRONMENTAL, SOCIAL & GOVERNANCE 1.7.1 The TrLISt requires the portfolio manager to consider Environmental, Social and Governance IESGI factors when constructing the portfolio and making investment decisions. 1.7.2 The manager shall vote and engage with the underlying companies to promote best practice and long-term sustainability. 1.7.3 The nianager shall provide, upon request, reports on ESG, Voting & Engagement relevant to our investment portfolio. UNITED NATIONS SUSTAINABLE DEVELOPLMENT GOALS (UN SDGS) 1.8.1 The portfolio will be invested in a globally diversified multi-asset class portfolio, subject to the ethiccil restrictions outlined above and consi(leration of ESG factors. The trust is keen to maximi5e risk-adjusted return on the investments and where possible have a positive influence on the world. 1.8.2 To this end, the portfolio manager is required to consider the 17 UN SDGS when making an inveslnient decision. How a company is seekiiig to address at least one of these goals and supporting the aims of the UN SDGS. REVIEW 1.5.1 This policy will be reviewed on an annual basis.