## **Annual Report and Financial Statements for Mid Cheshire Hospitals Charitable Fund**
**Registered Charity no. 1049008 For the financial year ended 31 March 2023**
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Mid Cheshire Hospitals Charitable Fund
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Report of the Trustees of Mid Cheshire Hospitals Charitable Fund for the year ended 31[st] March 2023
The Trustee’s present their annual report and the audited financial statements of the Mid Cheshire Hospitals Charitable Fund (referred to as “the Charity”) for the year ended 31[st] March 2023. The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the accounts and to comply with the Charities Act 2011 and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with FRS102,’The Financial Reporting Standard applicable to the UK and Republic of Ireland’.
The charity is affiliated to Mid Cheshire Hospitals NHS Foundation Trust, Leighton Hospital, Middlewich Road, Crewe, Cheshire, CW5 6HG which provides NHS acute and community healthcare to the local health economy. The Corporate board of Mid Cheshire Hospitals NHS Foundation Trust acts as the Trustee of the charity. Copies of the full Annual Report and Accounts for Mid Cheshire Hospitals can be obtained from the Trust website or from the Communications Office, Leighton Hospital, Middlewich Road, Crewe, Cheshire, CW1 4QJ.
## Objectives and Activities for the public benefit
MCH Charity fundraises to enhance the excellent work of Mid Cheshire Hospitals NHS Foundation Trust and to support our community. We grant funds which pay for things considered over and above basic NHS provision and which improve care and experience for patients and support staff wellbeing.
Our funds help to provide state-of-the-art equipment, new facilities, art and all the added extras that make people’s experience at our hospitals and in our community services the best it can be. The Trustees confirm that they have referred to the Charity Commission guidance on public benefit when reviewing the aims and objectives, in planning future activities, and reviewing spending plans throughout the year.
The main objective for the year ended 31[st] March 2023 was to ensure the continuation of the Hypnotherapy Service for people undergoing treatment for cancer and to launch a new appeal for Victoria Infirmary, Northwich. The charity also intended to develop and launch a new three-year strategy to support the development and growth of the charity.
All spending made via the charity must have a demonstrable link to the benefit made to patient care or experience, or to the wellbeing of staff and volunteers.
The charity has not made any financial grants directly to any organisation during this financial period. The charity purchases agreed goods or services and donates them to Mid Cheshire Hospitals NHS Foundation Trust for their exclusive use and benefit, and higher value items are treated as donated assets within the accounts of Mid Cheshire Hospitals NHS Foundation Trust.
## Achievements and performance
The total income for the year was £337,000 (2021/22: £481,000), which was a significant decrease on the previous year, mainly due to Legacies received. Expenditure for the year has totalled £456,000 (2021/22: £477,000)
During the early part of the year the charity focused on supporting the Cancer Services team to raise funds to secure the future of the hypnotherapy service. Hypnotherapy is offered for needle phobias, hospital related phobias and anxiety. Without the funding provided by MCH Charity some patients would not be
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Mid Cheshire Hospitals Charitable Fund
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able to tolerate diagnostic or treatment interventions. The service currently supports over 200 patients every year and costs almost £20,000 a year to operate.
Fundraising activity to support the fund included an Easter raffle, NHS Big Tea events and Great North Run participants. The campaign raised over £29,000 for the fund.
During the second quarter the charity launched a new three-year strategy with the aim to develop its fundraising and grant making plans.
Towards the end of the year the Trustees approved the launch of a new £100k appeal for Victoria Infirmary, Northwich. The appeal will fund the creation of a dedicated, safe, child-friendly waiting room adjacent to the main waiting hall at VIN. It will also fund other projects with the aim to improve patient care and experience at the hospital.
The charity funded Arts Programme has been extended until the middle of 2045/25 and many projects have been delivered with aims to improve environments, support patient experience and to improve staff wellbeing. Major projects include the completion of the staff Moments of Serenity photography project, music performances during December, creative packs for patients to use whilst on the wards, online artist led mindfulness sessions and the commissioning of a professional artist to create artwork for the new baby bereavement suite which will open in quarter two of 2023/24.
In November 2022 the charity was awarded a Special Recognition Award in the Contribution to the Community category at the South Cheshire Chamber’s Business Awards.
At the end of the year the charity was successful in being awarded a £30k Development Grant from NHS Charities Together. The grant will be used to fund three projects to develop a grant Evaluation and Monitoring framework, to develop Branding and Marketing for the charity and to create a Digital Fundraising plan for the charity.
## Financial Review
By the end of March 2023, the Charity held funds to the value of £992,000 (2021/22: £1,160,000), which includes a provision for the receipt of legacies to the value of £15,000 (2021/22: £153,000) which are expected to be finalised during 2023/24. The fund balance will ensure that wards and departments can continue to fund the extra benefits for patients for the forthcoming year.
A grant of £30,000 was received from the NHS Charities Together during 2022/23 which was for the development of the Charity Strategy.
The Charity has no permanent endowments, so funds are available to spend at the discretion of the Trustee. The Charitable Committee encourages funds to be spent within reasonable timescales – ideally within two years of the donation receipt. Fund managers are approached on an annual basis for spending plans which are checked against the public benefit criteria. The Charity aims to maintain one year’s worth of normal expenditure as its reserve, which is in the region of £250,000. In arriving at the appropriate level of reserves, the financial risks facing the Charity, likely future expenditure (based on historic evidence) and the level of existing funds have all been considered by the Trustee and will continue to be monitored throughout the next accounting period.
The clinical divisions have all participated in the management of funds with boards including discussions on the usage of funds within Divisional Board meetings and developing divisional spending and fundraising plans.
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Mid Cheshire Hospitals Charitable Fund
_____________________________________ The major risk the Charity is exposed to is the fall in the value of investments held on the stock exchange. These have been carefully considered and are reviewed by our investment advisors and the Charity Trustee Sub-Committee. The value of the investments saw a decrease in value at the end of March 2023. Markets were turbulent throughout the year, with Investment values leaving the portfolio with unrealised gains of £7,500 (2021/22: -£72000). A cautious approach has been taken by our Investment Advisors, which has attempted to maintain income and protected capital. The Trustees will monitor the investment value to ensure that funds have sufficient cash available to meet needs. Future falls in investment values may require a spending moratorium to be introduced to protect public donations now being received.
The material funding for the period has come mainly from generous donations from the public during 2022/23 with fundraising support for our appeals during that period. Legacies continue to be a valuable resource for the Charity and the Trustees would encourage local users of our services to think about leaving a legacy in their will to ensure that we can continue to provide better care and facilities for our patients.
## Plans for the Future
Over the coming year the charity will continue to fundraise for the VIN appeal and will develop new relationships with individuals, groups and businesses in the Northwich area.
The development grant projects will be launched and will complete at the end of 2023/24. The charity also aims to develop the offer made to bereaved families who wish to donate or fundraise for the charity in memory of a loved one.
The Lost Little Ones bereavement suite will launch, and fundraising will continue to ensure the upkeep of the suite and development of a phase two art programme.
The charity will aim to launch a new grant programme in partnership with the Trust’s Continuous Improvement team and will continue to develop its own Trust and Foundation grant programme to generate new funds for the charity through this new income stream. It is hoped that the charity will be successful in being awarded a £110K grant from NHS Charities Together which will be used to develop a new staff Social Prescribing service.
The charity also hopes to grow the team by recruiting an apprentice to support community fundraising.
Structure, Governance and Management
The main recipient of funds raised by Mid Cheshire Hospitals Charitable Fund is Mid Cheshire Hospitals NHS Foundation Trust for the benefit of its patents and staff.
The Mid Cheshire Hospitals Charitable Fund was created by Trust Deed as a governing document and is registered with the Charity Commission as the main umbrella charity for Leighton Hospital and Victoria Infirmary, Northwich (registered number 1049008). This was entered on the Central Register of Charities on 5 September 1995.
There are 3 active subsidiary unrestricted charities registered under the main umbrella charity which are:
Leighton Hospital General Fund – for charitable purposes relating to the NHS;
Victoria Hospital General Fund – for general charitable purposes relating to the NHS;
Cancer Fund – For the prevention, treatment and cure of cancer, the relief of suffering and research and education.
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Mid Cheshire Hospitals Charitable Fund
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Charitable funds received by the charity are accepted, held and administered as funds and property held on trust by the corporate body for purposes relating to the health service in accordance with the National Health Service Act 1977 and the National Health Service and Community Care Act 1990.
The board of Mid Cheshire Hospitals NHS Foundation Trust acts as Corporate Trustee for the Charity and meets independently twice a year. Non-Executive members of the Trust Board have been appointed by the Council of Governors in accordance with the Constitution of the NHS Foundation Trust, and Executive members of the Board are subject to recruitment by the NHS Foundation Trust Board. All Board Members undertake a Trust Induction programme upon appointment. All Board members receive regular updated information from the charity Commission regarding their role as Trustees. Members of the Trust Board and the Charitable Funds Committee do not act as individual Trustees.
The Corporate Trustee fulfils its legal duty by ensuring that funds are spent in accordance with the objects of each fund and the Trustee respects the wishes of our generous donors to benefit patient care and advance the good health and welfare of patients, carers, and staff. The Trustee involves each Division, ward and department in fundraising and decisions regarding the expenditure of charitable monies.
The Corporate Trustee has delegated duties to a Charities Committee who advise and assist the Corporate Trustee through:
The control, management and monitoring of the use of the fund resources;
Approval of all expenditure;
Providing support, guidance and encouragement for all its income raising activities;
Ensuring that “best practice” is followed in conduct of all its affairs and fulfilling all of its legal responsibilities including ensuring that the use of funds meets the Public Benefit Requirement set out by the Charities Commission;
Ensuring that the approved Investment Policy is adhered to and that performance is continually reviewed whilst being aware of ethical considerations; and
Keeping the Trust Board fully informed on the activity, performance and the risks of the Charity.
No payments are made to any individual on the basis of their membership of the Corporate Trustee or the Charities Committee.
Reference and Administrative Details
The Charity is registered with the Charity Commission of England and Wales, registration number 1049008. The charity is a Public Benefit Entity, and the trustees can confirm that they have regard to the Charity Commission’s guidance on public benefit.
The Corporate Board acting as Trustee had the following members who served during the period 1[st] April 2022 to 31[st] March 2023:
Mr Dennis Dunn - Trust Chairman (until June 2023) Prof Carolyn Wilkins OBE - Trust Chair (from June 2023) Mrs Lesley Massey - Deputy Chair Mrs Lorraine Butcher - Non-Executive
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Mid Cheshire Hospitals Charitable Fund
|Mid Cheshire Hospitals Charitable Fund
_____________________________________|||
|---|---|---|
|Mrs Lesley Massey|-|Non-Executive|
|Mr Andy Vernon|-|Non-Executive|
|Mr Manoj Agarwal|-|Non-Executive until Sept 2022|
|Mr Anthony Bristlin|-|Non-Executive|
|Dr Andrew Wilson|-|Non-Executive from July 2022|
|Mrs Elaine Billington|-|Non-Executive from February 2023|
|Mr James Sumner|-|Chief Executive until April 2022|
|Mr Ian Moston|-|Chief Executive Officer from September 2022|
|Mr Russ Favager|-|Deputy Chief Executive and Chief Finance Officer|
|||(Interim Chief Executive from April 2022 to Sept 2022)|
|Mrs Heather Barnett|-|Chief People Officer until December 2022|
|Mrs Jenny Grant|-|Interim Chief People Officer from January 2023|
|Mrs Julie Tunney|-|Chief Nursing Officer until October 2022|
|Mr Scott Malton|-|Chief Nursing Officer from September 2022|
|Mr Oliver Bennett|-|Chief Operating Officer until February 2023|
|Mrs Denise Frodsham|-|Interim Chief Operating Officer from February 2023|
|Mr Murray Luckas|-|Medical Director until June 2022|
|Mrs Clare Hammell|-|Medical Director from June 2022|
|Mr Dylan Williams|-|Chief Information Officer|
|Mrs Ros Davies|-|Acting Chief Finance Officer March – September 2022|
All are voting members of the Corporate Board.
The membership of the Charities Committee for the period 1[st] April 2022 to 31[st] March 2023 is as follows:
|Mr Andy Vernon|-|Non-Executive (Chair)|
|---|---|---|
|Mr Dennis Dunn|-|Trust Chairman|
|Mr Russ Favager|-|Deputy Chief Executive and Chief Finance Officer|
|||(Interim Chief Executive from May 2022 to)|
|Mrs Heather Barnett|-|Chief People Officer left February 2023|
|Mrs Jenny Grant|-|Interim Chief People Officer from March 2023|
Meeting of the Charities Committee during 2022/23 were also attended by:
|Mr Duncan Goff|-|Representing Director of Finance|
|---|---|---|
|Ms Caroline Birch|-|Financial Accountant|
|Mrs Emma Robertson|-|Charity Manager|
|Mrs Glynda Alasadi|-|Governor|
The Deputy Chief Executive and Chief Finance Officer of Mid Cheshire Hospitals NHS Foundation Trust, Mr Russ Favager, acts as Principal Advisor to the Corporate Trustee and as Principal Officer for the day-to-day management.
The principal office for the Charity is Finance Department, Mid Cheshire Hospitals NHS Foundation Trust, Leighton Hospital, Middlewich Road, Crewe, Cheshire, CW1 4QJ.
The Bankers for the Charity are Barclays Bank, Colmore Row, Birmingham, B3 2WN.
The Principal Solicitors for the Charity are Hill Dickinson LLP, No 1 St Paul’s Square, Liverpool, L3 9SJ.
The Investment Managers advising the Charity are Atmos Investments Ltd, Stafford Court, 145 Washway Road, Sale, M33 7PE.
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Mid Cheshire Hospitals Charitable Fund
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The Independent Examiners for the purposes of section 149 of the Charities Act 2011 are Voisey & Co LLP, Chartered Accountants, 8 Winmarleigh Street, Warrington, Cheshire, WA1 1JW
And Finally
On behalf of the staff and patients who have benefited from improvements due to donations or legacies, the Trustee would like to thank all patients, relatives, staff, and members of the community who have made charitable donations to Mid Cheshire Hospitals Charitable Fund, and hope that you will continue to support the Charity in the future.
Approved on behalf of the Corporate Trustee
------------------------------------------------------------------------------------------------
**Professor Carolyn Wilkins OBE Russell Favager Trustee Trustee**
7
MKI Ct*sfMrè F*)8pitaL% Charttth Fw
Independent Examinerfs report to the Trustees of Mid Cheshire Hospltal$ Charitable Fund (Registered
Number . 1049(M)8
I report to the charity trustees on my examination of the accounts of the Chartty for the year ended 31
March 2023.
Responsibilities and basi5 of report
As the charity's trustees of the Charity. you are responsible for the preparation of the accounts in
accordance with the requlrements of the Charities Act 2011 {*he 2011 Art'l.
Having satisfied myself that the accounts of the Charity are not required to be audited under Part 16 of the
2011 Art and are eligible for independent examination. I report in respect of my examination of your
charity's accounts as carried out under Section 145 of the Charrties Act 20111'the 2011 Act'l. In carrying
out my examination I have followed the Directiorbs gNen by the Charrty Commission under Sertion 145151
Ibl of the 2011 Att.
Independent examiner's statement
I have completed my examination. I confirm that no matters have Come to my attention in connection with
the examination giving me cause to believe=
accounting records were not kept in re5peLt of the Chartty a5 required by Section 386 of the 2006
Act; or
the accounts do not accord with those record5- or
the accounts do not cornply with the accounting requirements ofsection 396 of the 2006 Act other
than any requirement that the accounts give a true and fair view which is not a matter considered a5 part
of an independent examination,. or
the accounts have not been prepared in accordance with the methods and principles of the
Statement of Recommended Practice for accounting and reporting by charities lapplicable to charities
preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and
Republic of Ireland IFRS 10211.
I have no concern5 and have come across no other matters in connection with the examination to which
attention should be drawn In this report in order to enable a proper understanding of the atcounts to be
reached.
Philip Urmston Bsc FC4
Voisey & Co LLP, Chartered Accountants
8 Winmarleigh Street
Warrington, Cheshire WAI UW
21.........Q. Lukr... 2023
Mid Cheshire Hospitals Charitable Fund
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## **Annual Accounts 2022/23**
## **Statement of Trustees’ responsibilities in respect of the Trustees’ annual report and the financial statements**
Under charity law, the trustees are responsible for preparing a Trustees’ Annual Report and the financial statements in accordance with applicable law and regulations. The trustees are required to prepare the financial statements in accordance with UK Accounting Standards, including FRS 102 _The Financial Reporting Standard applicable in the UK and Republic of Ireland._
The financial statements are required by law to give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources for that period.
In preparing these financial statements, generally accepted accounting practice entails that the trustees:
- select suitable accounting policies and then apply them consistently;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards and the Statement of Recommended Practice have been followed, subject to any material departures disclosed and explained in the financial statements;
- state whether the financial statements comply with the trust deed and rules, subject to any material departures disclosed and explained in the financial statements;
- assess the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern; and
- use the going concern basis of accounting unless they either intend to liquidate the charity or to cease operations or have no realistic alternative but to do so.
The trustees are required to act in accordance with the trust deed and the rules of the charity, within the framework of trust law. They are responsible for keeping accounting records which are sufficient to show and explain the charity’s transactions and disclose at any time, with reasonable accuracy, the financial position of the charity at that time, and to enable the trustees to ensure that, where any statements of accounts are prepared by them under section 132(1) of the Charities Act 2011, those statements of accounts comply with the requirements of regulations under that provision. They are responsible for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error, and have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the charity and to prevent and detect fraud and other irregularities.
The trustees are responsible for the maintenance and integrity of the financial and other information included on the charity’s website. Legislation in the UK governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
Signed on behalf of the Corporate Trustee
………………………………………………………………………. Date: 28 September 2023
………………………………………………………………………. Date: 28 September 2023
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Mid Cheshire Hospitals Charitable Fund
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## **Statement of Financial Activities for period ended 31st March 2023**
|**Income**
Donations (note 2)
Legacies
Investment Income (note 3)
Total
**Expenditure**
Cost of raising Funds (Note 4)
Charitable Activities (Note 5)
Total
Net gains/(losses) on Investments
**Net Expenditure**
**Transfers between Funds**
**Net Movement in Funds**
**Reconciliation of Funds**
Total Funds Brought Forward
**Total Funds Carried Forward**|2022/23
UnrestrictedRestricted
Total
'000
'000
'000
157
30
187
143
-
143
7
-
7
307
30
337
-46
-
-46
-410
-
-410
-456
-
-456
-49
-
-49
-198
30
-168
-
-
0
-
-
-198
30
-168
1,160
-
1,160
962
30
992|2021/22
Unrestricted
Total
'000
'000
329
329
145
145
7
7|
|---|---|---|
|||481
481
-42
-42
-435
-435|
|||-477
-477
5
5|
|||9
9
-
-|
|||9
9|
|||1,151
1,151
1,160
1,160|
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Mid Cheshire Hospitals Charitable Fund
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## **Balance Sheet for period ended 31st March 2023**
|**Fixed Assets**
Investments (Note 7)
Total fixed assets
**Current Assets**
Debtors (Note 9)
Cash at Bank (Note 8)
Total current assets
**Liabilities**
Creditors falling due within
one year (Note 10)
Total Liabilities or provisions
Net current assets or liabilities
**Total net assets**
Funds of the Charity (Note 11)
Restricted Funds
Unrestricted Funds|2022/23
Unrestricted
Restricted
Total
'000
'000
'000
634
-
634
634
-
634
18
-
18
312
30
342
330
30
360
-2
-
-2|2021/22
Unrestricted
Total
'000
'000
680
680|
|---|---|---|
|||680
680
158
158
324
324|
|||482
482
-2
-2|
||-2
-
-2
328
30
358
962
30
992
-
30
30
962
-
962
962
30
992|-2
-2|
|||480
480|
|||1,160 1,160|
|||-
-
1,160 1,160|
|||1,160 1,160|
The notes on pages 13 to 19 form part of these accounts Signed on behalf of the Corporate Trustee (the Board of Mid Cheshire Hospitals NHS Foundation Trust) Prof Carolyn Watkins OBE: Chair ……………………………………………………………… Date 28 September 2023 Russ Favager Deputy Chief Executive and Chief Finance Officer: ………………………………. Date 28 September 2023
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Mid Cheshire Hospitals Charitable Fund
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## **Cashflow Statement for period ended 31st March 2023**
|**Cash Flows from operating activities:**
**Net cash provided by (used in) operating activities**
**Cash flows from Investing Activities**
Dividends from Investments (note 3)
Proceeds from sale of investments (note 7)
Purchase of investments (note 7)
Investment fees (note 4)
**Net cash provided by (used in) investing activities**
**Change in cash and cash equivalents in year**
Cash and cash equivalents as at 1st April 2022
**Cash and cash equivalents as at 31st March 2023**|2022/23
2021/22
'000
'000
-48
-216
7
7
921
17
-859
-12
-3
-4
66
8|
|---|---|
||18
-208|
||324
532|
||342
324|
## **Reconciliation of net Income/(expenditure) to net cash flow from operating activities**
|Net (expenditure)/ income for 2022/23 as per SOFA
Gains on Investments
Dividends
Decrease/ (increase) in Debtors
Decrease in Creditors
Investment Fees
Net Cash provided by/ (used in) Operating Activities|'000
'000
-168
9
-14
-14
-7
-7
140
-111
-
-97
3
4|
|---|---|
||-48
-216|
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Mid Cheshire Hospitals Charitable Fund
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## **Note 1 - Accounting Policies**
Mid Cheshire Hospitals NHS Foundation Trust is the corporate trustee to Mid Cheshire NHS Charitable Fund, referred to as 'the Charity'.
The Foundation Trust has assessed its relationship to the Charity and determined it to be a subsidiary because the foundation trust is exposed to, or has rights to, variable returns and other benefits for itself, patients and staff from its involvement with the charitable fund and has the ability to affect those returns and other benefits through its power over the fund.
The charitable fund’s financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities (SORP 2019) preparing their accounts in accordance with FRS 102, 'The Financial Reporting Standard applicable in the UK and Republic of Ireland’ issued on October 2019 and the Charities Act 2011 and UK Generally Accepted Practice as it applies from 1 January 2019.
The Charity operates for the benefit of patients, staff and visitors of Mid Cheshire Hospitals NHS Foundation Trust and is therefore a public benefit entity.
The financial statements have been prepared on a going concern basis which the Trustees consider to be appropriate for the following reasons.
The business model of the charity is such that its charitable activities are limited to those which it has sufficient funds to support from the excess of funding received over the costs of administering the charity. The charity therefore has no specific commitments and no committed costs beyond its fixed costs of operation which are detailed in note 5.
The Trustees, after reviewing the cash flow forecasts for 2023/24 and the Group’s 5-year strategic plan, is of the opinion that the charity will have sufficient funds to meet its liabilities as they fall due for that period. The Trustees have also considered the implications of COVID-19 on these cash flow forecasts and consider that as a result of its operating model explained above, even if no further funding is received in the 12-month period, the charity has sufficient cash reserves to pay all committed costs.
Consequently, the Trustees are confident that the charity will have sufficient funds to continue to meet its liabilities as they fall due for at least 12 months from the date of approval of the financial statements.
## **Income**
All income is recognised once the charity has entitlement to the income, it is probable that the income will be received, and the monetary value of incoming resources can be measured with sufficient reliability.
Donations are recognised when the Trust has been notified in writing of both the amount and settlement date. In the event that a donation is subject to conditions that require a level of performance before the charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charity, and it is probable that those conditions will be fulfilled in the reporting period.
Legacy gifts are recognised on a case-by-case basis following the granting of probate when the administrator/executor for the estate has communicated in writing both the amount and settlement date. In the event that the gift is in the form of an asset other than cash, or a financial asset traded on a recognised stock exchange, recognition is subject to the value of the gift being reliably measurable with a degree of reasonable accuracy and the title to the asset having been transferred to the charity.
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank.
Dividends are recognised once the dividend has been declared and notification has been received of the dividend due. This is normally upon notification by our investment advisor of the dividend yield of the investment portfolio.
Debtors are accrued for when the Charity is reasonably satisfied that it will receive the cash. Invoices will be accrued for at face value and legacies will be accrued for at the sum specified or an estimate based upon the estate valuation at the date of death.
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Mid Cheshire Hospitals Charitable Fund
## _____________________________________
## **Expenditure**
All expenditure is accounted for on an accruals basis. All expenses including support costs and governance costs are allocated or apportioned to the applicable expenditure headings. The financial statements are prepared in accordance with the accruals concept. A liability (and consequently, expenditure) is recognised in the accounts when there is a legal or constructive obligation, capable of reliable measurement, arising from a past event.
Expenditure is split into two main categories being the costs of raising funds and the actual costs of charitable activities.
All expenses including support costs and governance costs are allocated or apportioned to the applicable expenditure headings.
Support costs have been allocated between governance costs and other support costs. Governance costs comprise all costs involving the public accountability of the charity and its compliance with regulation and good practice. These costs include costs related to statutory audit and legal fees together with an apportionment of overhead and support costs (Note7).
The costs of generating funds represent fundraising costs together with investment management fees. Fundraising costs include expenses for fundraising activities together with the salaries and overhead costs of the Community fundraiser.
Costs of activities in the furtherance of charitable activities are expenditure incurred on the provision of services or goods. Support costs are an integral and material part of the costs of these activities.
Creditors are accrued for when the Charity is satisfied that it received the goods or service before the 31st March, and they are based on invoice actual value.
## **Cash at bank or in hand**
Cash is cash in hand and deposits with any financial institution repayable without penalty on notice of not more than 24 hours. The bank accounts held by the Charity both fall within this definition, and no other type of account is held.
## **Investment Fixed Assets**
Investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing market price, as provided by our investment advisors. The statement of financial activities includes the net gains and losses arising on revaluation and disposals throughout the year.
The Trust does not acquire put options, derivatives or other complex financial instruments. The main form of financial risk faced by the charity is that of volatility in equity markets and investment markets due to wider economic conditions, the attitude of investors to investment risk, and changes in sentiment concerning equities and within particular sectors or sub sectors.
Investment Income is accounted for at the point of receipt in the holding account of the nominated Investment advisors.
## **Realised gains and losses**
All gains and losses are taken to the Statement of Financial Activities as they arise. Realised gains and losses on investments are calculated as the difference between sales proceeds and their opening carrying value or their purchase value if acquired subsequent to the first day of the financial year.
Unrealised gains and losses are calculated as the difference between the fair value at the year end and their carrying value. Realised and unrealised investment gains and losses are combined in the Statement of Financial Activities.
## **Contingent liabilities**
A contingent liability is identified and disclosed for those grants resulting from:
- a possible obligation which will only be confirmed by the occurrence of one or more uncertain future events not wholly within the trustees’ control; or
- a present obligation following a grant offer where settlement is either not considered probable; or
- the amount has not been communicated in the grant offer and that amount cannot be estimated reliably.
## **Provisions**
- A Provision is a liability for which the timing or amount is uncertain. It is recognised when:
- the charity has a present obligation as a result of a past event that existed at the balance sheet date;
- It is probable that a transfer of economic benefits will be required to settle the obligation: and
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Mid Cheshire Hospitals Charitable Fund
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• the amount can be reliably estimated.
## **Structure of Funds**
Where there is a legal restriction on the purposes to which a fund may be put, the fund is classified in the accounts as a restricted fund. The Charity no longer holds restricted funds.
Funds where the capital is held to generate income for charitable purposes and cannot itself be spent are accounted for as endowment funds. Mid Cheshire Hospitals Charitable Fund holds no endowment funds.
Other funds are classified as unrestricted funds. Unrestricted funds comprise those funds which the Trustee is free to use for any purpose in furtherance of the charitable objects. Unrestricted funds include designated funds where the donor has made known their non-binding wishes or where the Trustee at its discretion has created a fund for a specific purpose.
The Trustee involves each division, ward, department, and where appropriate staff representatives, in fundraising and decisions regarding expenditure of charitable monies. A Committee of the Trust Board meets regularly and approves all expenditure.
## **Critical accounting judgements and key sources of estimation uncertainty**
In the application of the Charity’s accounting policies, which are described above, the Trustee is required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an on-going basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. The Trustee does not consider there are any critical judgements or sources of estimation uncertainty requiring disclosure beyond the accounting policies listed above.
## **Going Concern**
The financial statements have been prepared on a going concern basis which the Trustees consider to be appropriate for the following reasons.
The business model of the charity is such that its charitable activities are limited to those which it has sufficient funds to support from the excess of funding received over the costs of administering the charity. The charity therefore has no specific commitments and no committed costs beyond its fixed costs of operation which are detailed in note 7.
The Trustees have reviewed the cash flow forecasts for a period of 12 months from the date of approval of these financial statements which indicate that the charity will have sufficient funds to meet its liabilities as they fall due for that period. The Trustees have also considered the implications of COVID-19 on these cash flow forecasts and consider that as a result of its operating model explained above, even if no further funding is received in the 12-month period, the charity has sufficient cash reserves to pay all committed costs.
Consequently, the Trustees are confident that the charity will have sufficient funds to continue to meet its liabilities as they fall due for at least 12 months from the date of approval of the financial statements.
15
Mid Cheshire Hospitals Charitable Fund
_____________________________________
## **Note 2: Donated Income**
|**Note 2: Donated Income**||
|---|---|
|Donations from public
Memorial Donations
In aid of Fundraising
NHS Charities Together grants|2022/23
2021/22
Unrestricted
Restricted
Total
Unrestricted
'000
'000
'000
'000
88
-
88
232
30
-
30
36
40
-
40
61
-
30
30
0|
||158
30
188
329|
## **Note 3: Investment Income**
|**Note 3: Investment Income**||
|---|---|
|Dividends on Investments|2022/23
2021/22
Unrestricted
Restricted
Total
Unrestricted
'000
'000
'000
'000
7
-
7
12|
||7
-
7
12|
## **Note 4: Cost of Raising funds**
|**Note 4: Cost of Raising funds**||
|---|---|
|Investment Managers Fees
Fundraising Management|2022/23
2021/22
Unrestricted
Restricted
Total
Unrestricted
'000
'000
'000
'000
3
-
3
4
43
-
43
38|
||46
-
46
42|
## **Note 5. Analysis of Expenditure on Charitable Activities**
|||2022/23||2021/22||
|---|---|---|---|---|---|
||Unrestricted|Restricted|Total|Unrestricted|Total|
|Direct contribution to Patient Welfare|'000|'000|'000|'000|'000|
|Additional Equipment|161|-|161|202|202|
|Enhancement of patient experience|57|-|57|21|21|
|Improvement of patient facilities|4|-|4|8|8|
|Direct Contribution to staff Welfare||||||
|Educational opportunities for staff|23|-|23|25|25|
|Improvement to staff facilities|20|-|20|58|58|
|Recognition of staff achievements|39|-|39|36|36|
16
Mid Cheshire Hospitals Charitable Fund
_____________________________________
|Support costs
Total Expenditure|106
-
106
410
-
410|85
85|
|---|---|---|
|||435
435|
## **Note 6: Analysis of Support Costs**
|Governance
Audit
Fee/Examiners
Fee
Finance support
Information
Technology
Human
Resources
Totals|**2022/23**
Raising Funds
Unrestricted
‘000
Charitable
Activities
Unrestricted
‘000
Total
‘000
Basis of Allocation
3
5
8
Apportionment on
average fund
balance
-
2
2
Apportionment on
average fund
balance
-
12
12
Apportionment on
average fund
balance
-
3
3
Apportionment on
average fund
balance
43
84
127
Allocated on time
and average fund
balance
46
106
152|**2021/22**
Raising Funds
‘000
Charitable
Activities
‘000
Total
‘000
4
3
7
-
5
5
-
11
11
-
2
2
38
64
102|
|---|---|---|
|||42
85
127|
Independent examination fees received by the Independent Examiner was £2100 (2021/22 £NIL) In the prior year, the Audit Fee received by the Auditors was £4,250
|**Note 7: Fixed Asset Movements - Investments**
Market Value as at 1st April 2022
Add: Additions to Investments at cost
Less: Sales at carrying value
Less: Net gain/ (loss) on revaluation
Market value as at 31st March 2023
Historic cost of Investments at 31st March
Investments at Market value comprised:
Equities listed on UK stock exchange
UK Money market investments|2022/23
2021/22
'000
'000
680
671
859
12
-922
-17
16
14|
|---|---|
||633
680|
||£626K
2022/23
2021/22
'000
'000
619
657
14
23|
||633
680|
17
Mid Cheshire Hospitals Charitable Fund
_____________________________________
## **Note 8: Analysis of cash and cash equivalents**
|2022/23
2021/22
Unrestricted
Restricted
Total
Unrestricted
'000
'000
'000
'000
Cash in hand
312
30
342
324
**Total Cash and cash equivalents**
312
30
342
324
**Note 9: Analysis of Debtors**
2022/23
2021/22
'000
'000
HMRC Gift aid
5
4
Confirmed Legacies
13
153
Monies owed by MCHFT
-
1
18
158
**Note 10: Analysis of Creditors falling within**
**one year**
2022/23
2021/22
'000
'000
Trade Creditors
2
2
2
2
**Note 11: Analysis of Charitable Funds**
**2022/23**
Balance B/fwd
Income
Expenditure
Transfers
Gains and losses
Fund c/fwd
01.04.2022
22/23
22/23
22/23
22/23
31.03.2023
'000
'000
'000
'000
'000
'000
Restricted Funds
-
30
-
-
-
30
Unrestricted Funds
1,160
307
-456
-
-49
962
1,160
337
-456
0
-49
992
Significant Balances of funds held as at 31st March 2023
£’000
Leighton General
235
Urology Fund
142
Neo-Natal Fund
136
Other Funds
481||2022/23
2021/22
Unrestricted
Restricted
Total
Unrestricted
'000
'000
'000
'000
312
30
342
324|
|---|---|---|
|||312
30
342
324|
||||
||||
||||
18
Mid Cheshire Hospitals Charitable Fund
_____________________________________
||||||Gains and||
|---|---|---|---|---|---|---|
|**2021/22**|Balance B/fwd|Income|Expenditure|Transfers|losses|Fund c/fwd|
||01.04.2021|21/22|21/22|21/22|21/22|31.03.2022|
||'000|'000|'000|'000|'000|'000|
|Unrestricted Funds|||||||
|Leighton Hospital & Victoria Infirmary|1,151|481|-477|-|5|1,160|
||1,151|481|-477|0|5|1,160|
|Significant Balances of funds held as at 31st|||||||
|March 2022|||||||
||£’000||||||
|Dementia Appeal|£94||||||
|Leighton General|£323||||||
|Neo-Natal Fund|£178||||||
|Other Funds|£567||||||
## **Note 12: Contingent Liabilities and Assets**
At the end of the Accounting Period, The Charity had been informed of 2 legacies due, where the value of the legacy was uncertain and that there was anticipated to be a delay in the legal process to finalise the Estates. No accrual for these has been made in these accounts because of this uncertainty.
## **Note 13: Related Party Transactions**
During the year neither the Trustee nor members of the key management staff or related parties to them had undertaken any material transactions with Mid Cheshire Hospitals Charitable Fund or received remuneration or expenses funded by Charitable Funds during the year. The Charitable Fund has made revenue and capital payments to Mid Cheshire Hospitals NHS Foundation Trust where the Trustee is also the Trust Board. All costs within Expenditure on the Statement of Financial Activities were originally funded by Mid Cheshire Hospitals NHS Foundation Trust Revenue Account and reimbursed in full from Charitable funds. At the Balance Sheet date the amount owing in outstanding transactions to Mid Cheshire Hospitals NHS Foundation Trust was £0 (2021/2022: £43,000) and the Trust owed the Charity £0 (2021/2022:£44,000). The total repaid to Mid Cheshire Hospitals NHS Foundation Trust for 2022/23 was £456,000 (2021/2022: £477,000). The audited accounts of Mid Cheshire Hospitals NHS Foundation Trust are included in its Reports and Accounts.
19