2022-03-31-accounts - The Epsom And St Helier NHS Trust Charitable Fund

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The Epsom and St Helier NHS Trust Charitable Fund Charity Number 1049197

Annual Report and Accounts 2021/2022

The Epsom and St Helier NHS Trust Charitable Fund Annual Report and Accounts 2021/2022

Foreword by the Trustee

Welcome to our annual report for 2021/2022. We are the corporate trustee of the Epsom and St Helier NHS Trust Charitable Fund and work in partnership with the Epsom and St Helier University Hospitals NHS Trust for the benefit of NHS patients and their carers.

We exist to provide resources and facilities to meet the needs of those who use our hospitals. I am delighted to be reviewing another year, a year unlike any other but, where we have received £452,000 in income and spent £756,000 in grants to support the care and treatment of our patients and staff.

Jacqueline Totterdell, Group Chief Executive Officer

The Epsom and St Helier NHS Trust Charitable Fund Annual Report and Accounts 2021/2022

Who we are

The Epsom and St Helier NHS Trust Charitable Fund is an independent registered charity (registered number 1049197). We exist to raise funds and receive donations for the benefit of the patients and staff of Epsom and St Helier University Hospitals NHS Trust. The Trust Board is the Corporate Trustee of the Charity. The Trust operates two busy general hospitals and runs a number of outreach clinics and community services, all of which are supported by the Charity. The main hospital sites are:

St Helier Hospital and Queen Mary’s Hospital for Children; and
Epsom Hospital (which is also home to the South West London Orthopaedic Centre).

St George’s, Epsom and St Helier University Hospitals and Health Group

In August 2021, after years of collaboration and creating closer working ties, the Boards of Epsom and St Helier and St George’s agreed to form a hospital group. The two trusts remain separate legal entities but are now led by a single executive team and have put in place harmonised governance arrangements which enable and support closer collaborative working.

What we aim to do: our mission, objectives and activities

Our mission

Our mission is to use funds received to support our hospitals’ staff, patients, and carers.

Grants are made in accordance with charity law, our constitution and the wishes and directions of donors. In making grants, we reflect the wishes of patients and staff by directing funds towards areas that they tell us are most in need.

Our objectives

Our overarching objective is set out in the Charity’s governing documents. It is to spend money received for any charitable purpose and purposes relating to the National Health Service wholly or mainly for Epsom and St Helier University Hospitals NHS Trust. This translates into the below objectives which underpin our actual spend:

To purchase equipment, services and facilities not normally provided by the NHS;
To motivate staff, by improving staff facilities and by providing services that improve wellbeing;
To support the development and learning of our staff by providing education over and above that normally provided by the Trust.

What we have achieved: highlights from activities undertaken in the year

The COVID-19 pandemic has placed unprecedented pressures on the NHS. The Charity has continued to support staff by recognising the hardwork and dedication that they have given to the Trust and presented each member of Staff with a framed certificate and medal.

Where ever possible the Charity continued to offer to fund improvements to staff welfare and wellbeing and investments to aid clinical outcomes.

The Epsom and St Helier NHS Trust Charitable Fund Annual Report and Accounts 2021/2022

Charity governance, structure and management arrangements

Epsom and St Helier University Hospitals NHS Trust is the Corporate Trustee of the Charity. The Executive Directors and Non-Executive Directors of our Trust Board share responsibility for ensuring that the NHS body fulfils its duties as Corporate Trustee in managing the Charitable Funds.

The Fundraising and Charitable Funds Steering Group reports to the Charitable Funds Committee which reports to the Board. The role of the Fundraising and Charitable Funds Steering Group is to oversee progress and developments from the Epsom and St Helier Hospitals Charity and the Trust’s fundraising activities.

The role of the Charitable Funds Committee is to discharge on behalf of the Board statutory responsibilities such as the approval of the Annual Report and Accounts and other reporting requirements.

Epsom and St Helier University Hospitals NHS Trust staff are responsible for the day to day administration of the Charity, for which the NHS Trust charged a fee of £39,000. Other staff who spend significant amounts of time on the Charity’s business are largely senior staff who provide their services in their own time.

How we funded our work, our achievements and performance

The following figures are taken from the full accounts. The full accounts are available from the Charity Commission’s website and expand on the information provided below: https://www.gov.uk/government/organisations/charity-commission.

Money received: sources of funds and our new team

The Charity employs a fund raising team. The team consists of two people, one manager and one administrator. They are employed by the Trust and recharged in full to the Charity.

The Trustee has an ambition to transform the Charity into an active fundraising operation to grow income for our staff and patients. This is because (in line with other NHS charitable foundations), the Trustee wish to raise funds and receive donations for projects which cannot be financed by government and normal NHS funding.

During the year the Charity continued to received donations, legacies, and investment income.

Donations and legacies. Our largest source of income are donations given by the public via gifts or legacies:
Gifts from the public (totalling £236,000 in 2021/2022), from a few pence in collecting boxes to several hundred pounds;
Legacies and Gifts in Memory (totalling £159,000 in 2021/2022). A gift in a will or a collection in memory of a loved one really is an investment in the future of the trust, and we are fortunate to be remembered by people every year. Where the terms of the gift require the donation to be spent for a specific purpose the Charity makes sure this is adhered to.
Investment Income (totalling £27,000 in 2021/2022). By prudent management of funds not immediately required we earn interest and dividends for further use.

Money spent: what we spent the money on

The Epsom and St Helier NHS Trust Charitable Fund Annual Report and Accounts 2021/2022

Our charitable work was made up of three core areas:

New equipment. The NHS buys its own equipment for day to day use and has its own capital programme, but with limited resources, expenditure on non-essential items is restricted. The Charity makes a real difference by purchasing items that the Trust does not believe are core to its requirements but improve the patient experience. Individual purchases during the year over £5,000 were:
£ 315,000 Cardiac Catheterisation Laboratory at Epsom Hospital 85,415 Improved consulting room at South West London Orthopaedic Centre 51,008 Improved shelving at South West London Orthopaedic Centre 15,761 Bladder Scanners for use at Epsom 8,214 Nitrogen and Compressed Air system for use at St Helier
Staff education and welfare . We spent £179,000 on initiatives to support those who work in our hospitals. By helping to ensure staff are well trained and supported we improve the quality of care they can deliver to patients;
Patients’ welfare and amenities. We spent £1,000 on providing better facilities for patients and carers when they visit the hospital. This continues to be much lower than usual due to the ongoing effects of the pandemic.

The Charity’s income and expenditure for the year can be seen as follows:

----- Start of picture text -----
Income 2021/2022 £452k Expenditure 2021/2022 £756k
Investment Management Costs
Fundraising Costs
Donations
Legacies Patients Welfare & Amenities
Investment Income Staff Welfare & Amenities
Fundraising Income Donations of equipment and services to the
Gift Aid Trust
Volunteers expenses
----- End of picture text -----

What we plan to do with your donations: our future plans

The Charity plans to continue to support Epsom and St Helier University Hospitals NHS Trust in providing services to patients, purchase new equipment when needed, and facilitate continued improvement in the education and welfare of hospital staff.

Our grant making policy

The Charity makes grants. Grants are made from general funds and designated (earmarked) funds.

General funds: these funds are received by the Charity with no preference expressed by donors;
Designated (earmarked) funds: are established for a particular part of the hospital or activity nominated for support by the donor. They are overseen by fund holders who can make recommendations on how to spend the money within the designated area. Fund holders recommendations are generally accepted and these funds can be spent at any time.

The Epsom and St Helier NHS Trust Charitable Fund Annual Report and Accounts 2021/2022

Our reserves policy

The Trustee intends that designated funds are spent within a reasonable period of receipt.

The Trustee reviews the balances held in designated funds, in accordance with the provisions of legislation relating to charitable funds, to determine whether these funds are likely to be committed in the near future and the extent to which there is a continuing need identified for any particular designated fund. The Trustee review designated funds to ensure that they are all active. Any inactive funds will be closed and the funds transferred to reserves.

Our financial health

The Charity remains solvent. At the end of March 2022 the Charity had £142,000 of cash, net assets of £3,246,000, and, as the Charity does not enter into long term commitments, future payables and commitments of only £127,000.

About our investments

The investments of the Charity are managed by Cazenove Capital, with the objective to protect the investments from inflation, ensure maximum investment returns with medium risk. The governing documents allow the Trustee to invest in a wide range of shares and investments, provided they are not speculative or include companies involved in distilling, boxing or arms. In addition, the Trustee has decided not to invest in tobacco securities because of the proven link between smoking and poor health which would make such investments contrary to our charitable aims.

The portfolio is structured to permit a range of investments intended to yield a competitive rate of return in difficult market conditions. Investment performance is monitored by the Charitable Funds Committee.

How we organise our affairs: reference and administrative details

The Charity is registered with the Charity Commission under the single Registered Number 1094197. Its objects are ‘for any charitable purpose or purposes relating to the National Health Service .’

The Charitable Funds held by Epsom and St Helier NHS Trust, and known as “Epsom and St Helier NHS Trust Charitable Fund” (Registration No. 1049197), are governed by a Declaration of Trust made on 6 November 1995 and subsequently amended on 6 December 1999. The Charity’s Trustee is the Epsom and St Helier University Hospitals NHS Trust as a corporate entity.

How to contact us

The Epsom and St Helier NHS Trust Charitable Fund, Finance Department East Wing Epsom Gateway Ashley Avenue Epsom Surrey KT18 5BS

Our Trustee

The Epsom and St Helier NHS Trust Charitable Fund Annual Report and Accounts 2021/2022

The Charity has a corporate Trustee. The names of the directors of the body corporate are as shown in the table below:

		From:	To:
Gillian Norton	Chairman	01/04/2021	31/03/2022
Elizabeth Bishop	Non-Executive	01/04/2021	30/09/2021
Peter Kane	Non-Executive Director	01/10/2021	31/03/2022
Martin Kirke	Non-Executive Director and Vice Chair	01/04/2021	31/03/2022
Professor Derek Macallan	Non-Executive Director	01/04/2021	31/03/2022
Phillip Wilbraham	Non-Executive Director	01/04/2021	31/03/2022
Richard Noble	Non-Executive Director	01/04/2021	31/12/2021
Ann Beasley	Non-Executive Director	01/06/2021	31/03/2022
Aruna Mehta	Non-Executive Director	01/04/2021	31/03/2022
Chris Elliot	Associate Non Executive Director	01/04/2021	31/03/2022

Daniel Elkeles	Chief Executive	01/04/2021	16/08/2021
Jacqueline Totterdell	Chief Executive	17/08/2021	31/03/2022
Rakesh Patel	Chief Finance Officer	01/04/2021	03/12/2021
Andrew Grimshaw	Group Chief Finance Officer	01/02/2022	31/03/2022
Dr James Marsh	Joint Medical Director to 31/1/21: from 1/2/22 Group Deputy Chief Executive Officer	01/04/2021	31/03/2022
Dr Ruth Charlton	Deputy Chief Executive and Joint Medical Director	01/04/2021	31/01/2022
Dr Richard Jennings	Group Chief Medical Officer	01/02/2022	31/03/2022
Sue Jones	Joint Chief Operating Officer	01/04/2021	31/01/2022
Phillipa Jones	Joint Chief Operating Officer	01/04/2021	31/01/2022
James Blythe	Managing Director	01/02/2022	31/03/2022
Arlene Wellman	Chief Nurse to 31/1/21: from 1/2/22 Group Chief Nurse	01/04/2021	31/03/2022
Debbie Eyitayo	Director of People	01/04/2021	27/08/2021
Saskia de Vries	Director of People	28/08/2021	31/01/2022
Paul da Gama	Group Chief People Officer	01/02/2022	31/03/2022
Peter Davies	Director of Corporate Services to 9/1/22: from 10/1/22 Group Chief Digital Officer	01/04/2021	31/03/2022
Stephen Jones	Chief Corporate Affairs Officer	01/02/2022	31/03/2022
Trevor Fitzgerald	Director of Estates Facilities and Capital Projects	01/04/2021	31/01/2022
Thirza Sawtell	Director of Integrated Care	01/04/2021	31/03/2022

Our Trust Board comprises the Chairman, five voting non-executive directors, two on-voting associate non-executive directors, four voting executive directors and five non-voting directors. Executive directors are full-time employees of the Trust, with a notice period of three months. Non-Executive Directors are appointed by the NHS England and NHS Improvement on behalf of the Secretary of State for Health and Social Care. With the establishment of the new hospital group with St George’s University Hospitals NHS Foundation Trust, a new group executive team was appointed to lead both Epsom and St Helier University Hospitals NHS Trust and St George’s University Hospitals NHS Foundation and this arrangement commenced on 1 February 2022.

Our advisors

Investment Auditors: Internal auditors: Bankers: managers: Cazenove Charities KPMG LLP (UK) BDO LLP The Royal Bank of 12 Moorgate 15 Canada Square Arcadia House Scotland London London Ocean Village Government Banking EC2R 6DA E14 5GL Southampton, CST,2nd Floor, SO14 3TL 80 Bishopsgate London EC2M 4RB

The Epsom and St Helier NHS Trust Charitable Fund Annual Report and Accounts 2021/2022

Trustee recruitment, appointment and induction

Non-Executive Directors are appointed by the NHS England on behalf of the Secretary of State for Health and Social Care and executive members of the Board are subject to recruitment by the NHS Trust Board. Members of the Trust Board and Charitable Funds Committee are not individual Trustees but act as agents on behalf of the Corporate Trustee.

All new executive and non-executive directors have an induction programme to familiarise them with their key contacts and responsibilities, which will include Charitable Fund issues if appropriate.

Key management personnel remuneration

The Trustee has given their time freely and no Trustee remuneration was paid in the year.

The Trustee is required to disclose all relevant interests and register them with the Head of Corporate Governance and withdraw from decisions where a conflict of interest arises. No director has informed the Charity of any conflicts of interest.

Risk analysis

As part of their business planning exercises, the Trustee considers the major risks to which the Charity is exposed. They have reviewed the processes and systems that are in place to mitigate the likelihood and potential impact of these risks (should they crystallise) and have concluded that they are reasonable for the Charity’s size and complexity.

The major risks have been identified are as follows:

Future levels of income

The Charity is reliant on donations to allow it to make payments. If income falls then the Charity may not be able to settle future obligations. This risk is mitigated by the Charity never entering into future commitments which are not wholly covered by existing liquid resources (which also avoids the liquidity risk of movements in investment values meaning that what is affordable becomes unaffordable in the future).

Fall in investment returns

The Charity generates additional income from investing its cash balances. The Trustee considers the loss of investment income to be a major financial risk. The risk is mitigated by retaining expert investment managers, having a diversified investment portfolio and regularly reviewing that portfolio. The Trustee make use of benchmarking information when reviewing the portfolio.

Unforeseen changes in the operation of the NHS

The NHS is subject to national changes in government policy as well as politically driven decisions locally. There is a risk that these decisions could make it more difficult for the Charity to meet its objectives. This risk is mitigated through the Trustee taking proactive steps, as part of their professional work, to be aware of the trust’s direction of travel and then feeding that knowledge into the Charity’s decision making and planning processes.

The Epsom and St Helier NHS Trust Charitable Fund Annual Report and Accounts 2021/2022

Related parties

The Charity works closely with, and provides the majority of its grants to, Epsom and St Helier University Hospitals NHS Trust, which operates the local hospitals.

Related parties are where the Charitable Fund has transactions with organisations that are controlled by the Fund’s Trustee. The Charitable Fund requires Trustee’s to make declarations of interest on an annual basis which are held on the Trust’s register of interests. Declared interests are managed in line with the Trust’s governance procedures, and transactions with related parties are disclosed in the financial statements.

Our relationship with the wider community

The ability of the Charity to continue its support for the Trust is dependent on its ability to maintain and increase donations from the general public. The Charity continues to forge strong relationships with members of staff of the hospitals without whose co-operation the ability to make an effective contribution would be much diminished. This co-operation will be enhanced with the formation of the Fundraising Department

Volunteers

The Trustee would like to pay tribute to our volunteers for their time, support, and commitment to the Trust and the members of staff who give of their time out of hours in support of the charity.

Having read about us, please consider supporting the work of The Epsom and St Helier NHS Trust Charitable Fund.

If you would like to make a donation or support any of our fundraising activities, please give us a call and speak to our fundraising team.

Signed:

Jacqueline Totterdell, Group Chief Executive Officer

Date: 26[th] January 2023

The Epsom and St Helier NHS Trust Charitable Fund Annual Report and Accounts 2021/22

Statement of Trustees' responsibilities in respect of the Trustees' annual report and accounts

Under charity law, the Trustees are responsible for preparing the Trustees’ annual report and accounts for each financial year which show a true and fair view of the state of affairs of the charity and of the excess of expenditure over income for that period.

In preparing these financial statements, generally accepted accounting practice requires that the trustees:

Select suitable accounting policies and then apply them consistently;
Make judgments and estimates that are reasonable and prudent;
State whether the recommendations of 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, subject to any material departures disclosed and explained in the financial statements;
Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue its activities.

The Trustees are required to act in accordance with the Trust deed and the rules of the Charity, within the framework of trust law. The Trustees are responsible for keeping proper accounting records, sufficient to 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 the Trustees under section 132(1) of the Charities Act 2011, those statements of accounts comply with the requirements of regulations under that provision. The Trustees have general responsibility for taking such steps as are reasonably open to the Trustees to safeguard the assets of the Charity and to prevent and detect fraud and other irregularities.

Signed on behalf of the Trustees:

Signed:

Jacqueline Totterdell, Group Chief Executive Officer

Date: 26[th] January 2023

Independent auditor’s report to the Trustee of Epsom and St Hellier University Hospitals NHS Trust Charitable Fund

Opinion

We have audited the financial statements of Epsom and St Hellier University Hospitals NHS Trust Charitable Fund (“the charity”) for the year ended 31 March 2022 which comprise the Statement of Financial Activities, Balance Sheet, Statement of Cash Flows, and related notes, including the accounting policies in note 1.

In our opinion the financial statements:

give a true and fair view of the state of the charity’s affairs as at 31 March 2022 and of its incoming resources and application of resources for the year then ended;
have been properly prepared in accordance with UK accounting standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland ; and
have been prepared in accordance with the requirements of the Charities Act 2011.

Basis for opinion

We have been appointed as auditor under section 149 of the Charities Act 2011 (or its predecessors) and report in accordance with regulations made under section 154 of that Act.

We conducted our audit in accordance with International Standards on Auditing (UK) (“ISAs (UK)”) and applicable law. Our responsibilities are described below. We have fulfilled our ethical responsibilities under, and are independent of the charity in accordance with, UK ethical requirements including the FRC Ethical Standard. We believe that the audit evidence we have obtained is a sufficient and appropriate basis for our opinion.

Going concern

The trustee has prepared the financial statements on the going concern basis as they do not intend to liquidate the charity or to cease its operations, and as they have concluded that the charity’s financial position means that this is realistic. They have also concluded that there are no material uncertainties that could have cast significant doubt over its ability to continue as a going concern for at least a year from the date of approval of the financial statements (“the going concern period”).

In our evaluation of the trustee’s conclusions, we considered the inherent risks to the charity’s business model and analysed how those risks might affect the charity’s financial resources or ability to continue operations over the going concern period.

Our conclusions based on this work:

we consider that the trustee’s use of the going concern basis of accounting in the preparation of the financial statements is appropriate;
we have not identified, and concur with the trustee’s assessment that there is not, a material uncertainty related to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for the going concern period.

However, as we cannot predict all future events or conditions and as subsequent events may result in outcomes that are inconsistent with judgements that were reasonable at the time they were made, the above conclusions are not a guarantee that the charity will continue in operation.

Fraud and breaches of laws and regulations – ability to detect

Identifying and responding to risks of material misstatement due to fraud

To identify risks of material misstatement due to fraud (“fraud risks”) we assessed events or conditions that could indicate an incentive or pressure to commit fraud or provide an opportunity to commit fraud. Our risk assessment procedures included:

Enquiring of the trustee, other management as to the Charity’s high-level policies and procedures to prevent and detect fraud, as well as whether they have knowledge of any actual, suspected or alleged fraud.
Reading Charitable Funds Committee minutes.
Using analytical procedures to identify any unusual or unexpected relationships.

We communicated identified fraud risks throughout the audit team and remained alert to any indications of fraud throughout the audit.

As required by auditing standards, we perform procedures to address the risk of management override of controls, in particular the risk that management may be in a position to make inappropriate accounting entries. On this audit we do not believe there is a fraud risk related to revenue recognition because of the nature of the income received by the Charity.

We did not identify any additional fraud risks.

We performed procedures including identifying journal entries to test based on risk criteria and comparing the identified entries to supporting documentation. These included those journals with unusual account combinations and material post year end journals.

Identifying and responding to risks of material misstatement related to compliance with laws and regulations

We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience, through discussion with the trustee and other management (as required by auditing standards), and discussed with the trustee and other management the policies and procedures regarding compliance with laws and regulations.

We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit.

The potential effect of these laws and regulations on the financial statements varies considerably.

The Charity is subject to laws and regulations that directly affect the financial statements including financial reporting legislation (including related charities legislation), and we assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.

Whilst the Charity is subject to many other laws and regulations, we did not identify any others where the consequences of non-compliance alone could have a material effect on amounts or disclosures in the financial statements.

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the trustee and other management and inspection of regulatory and legal correspondence, if any. Therefore if a breach of operational regulations is not disclosed to us or evident from relevant correspondence, an audit will not detect that breach.

Context of the ability of the audit to detect fraud or breaches of law or regulation

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it.

In addition, as with any audit, there remained a higher risk of non-detection of fraud, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. Our audit procedures are designed to detect material misstatement. We are not responsible for preventing non-compliance or fraud and cannot be expected to detect non-compliance with all laws and regulations.

Other information

The trustee is responsible for the other information, which comprises the Trustee’s Annual Report. Our opinion on the financial statements does not cover the other information and, accordingly, we do not express an audit opinion or, except as explicitly stated below, any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether, based on our financial statements audit work, the information therein is materially misstated or inconsistent with the financial statements or our audit knowledge. We are required to report to you if:

based solely on that work, we have identified material misstatements in the other information; or
in our opinion, the information given in the Trustee’s Annual Report is inconsistent in any material respect with the financial statements.

We have nothing to report in these respects.

Matters on which we are required to report by exception

Under the Charities Act 2011 we are required to report to you if, in our opinion:

the charity has not kept sufficient accounting records; or
the financial statements are not in agreement with the accounting records; or
we have not received all the information and explanations we require for our audit.

We have nothing to report in these respects.

Trustee’s responsibilities

As explained more fully in their statement set out on page 9, the trustee is responsible for: the preparation of financial statements which give a true and fair view; 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; 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 they either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities

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 our opinion in an auditor’s report. Reasonable assurance is a high level of assurance, but does not guarantee that an audit conducted in accordance with ISAs (UK) will always detect

a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements.

A fuller description of our responsibilities is provided on the FRC’s website at www.frc.org.uk/auditorsresponsibilities.

The purpose of our audit work and to whom we owe our responsibilities

This report is made solely to the charity’s trustee as a body, in accordance with section 149 of the Charities Act 2011 (or its predecessors) and regulations made under section 154 of that Act. 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 auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and its trustee, as a body, for our audit work, for this report, or for the opinions we have formed.

Fleur Nieboer

for and on behalf of KPMG LLP, Statutory Auditor

Chartered Accountants

KPMG LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006

15 Canada Square, Canary Wharf, London, E14 5GL

30 January 2023

The Epsom and St Helier NHS Trust Charitable Fund Annual Report and Accounts 2021/22

Epsom and St Helier NHS Trust Charitable Funds

Statement of Financial Activities for the year ending 31 March 2022

Income from: Donations Note 3 Other trading activities Note 3 Legacies Note 3 Investment Income Note 5 Total Income Expenditure on: Raising funds Investment management costs Fundraising Costs Note 6 Expenditure on charitable activities Patients welfare and amenities Note 7 Staff welfare and amenities Note 7 Research Expenditure Note 7 Donations of equipment and services to the Trust Note 7 Volunteers and miscellaneous expenses Note 7 Total Expenditure Realised and Unrealised Gains (losses) on Investment assets Net Movement in Funds Reconciliation of funds: Fund balances at 1 April 2021 Fund balances at 1 April 2020 Total Funds carried forward Note 16	2021/2022 Unrestricted Restricted Total Funds Funds Funds £'000 £'000 £'000 236 0 236 30 0 30 159 0 159 25 2 27 450 2 452 (25) (5) (30) (86) 0 (86) (1) 0 (1) (179) 0 (179) (1) 0 (1) (543) (31) (574) (1) 0 (1) (836) (36) (872) 230 17 247 (156) (17) (173) 3,172 247 3,419 3,016 230 3,246	2020/2021 Unrestricted Restricted Total Funds Funds Funds £'000 £'000 £'000 226 176 402 11 0 11 354 0 354 27 0 27
		618 176 794 (26) (3) (29) (96) 0 (96) (1) 0 (1) (63) (150) (213) (1) 0 (1) (182) 0 (182) 0 0 0
		(369) (153) (522) 526 36 562
		775 59 834

		2,397 188 2,585

		3,172 247 3,419

All gains and losses recognised in the period are included above. All activities relate to continuing operations.

The accompanying notes are an integral part of this Statement of Financial Activities.

The Epsom and St Helier NHS Trust Charitable Fund Annual Report and Accounts 2021/22

Epsom and St Helier NHS Trust Charitable Fund Funds Balance Sheet as at 31 March 2022

Investments Note 13 Total Fixed Assets Receivables Note 14 Stock Cash at bank and in hand Total Current Assets Payables: falling due within one year Note 15 Net Current Assets / (Liabilities) Total net assets Funds of the charity: Restricted Note 16 Unrestricted Note 16 Total Charity Funds	2021/2022 Unrestricted Restricted Total Funds Funds Funds £'000 £'000 £'000 2,985 230 3,215 2,985 230 3,215 15 0 15 1 0 1 142 0 142 158 0 158 (127) 0 (127) 31 0 31 3,016 230 3,246 230 230 3,016 3,016 3,016 230 3,246	2020/20211 Unrestricted Restricted Total Funds Funds Funds £'000 £'000 £'000 2,973 0 2,973
		2,973 0 2,973 15 0 15 1 0 1 463 247 710
		479 247 726 (280) 0 (280)
		199 247 446

		3,172 247 3,419
		247 247 3,172 3,172
		3,172 250 3,419

The accompanying notes are an integral part of the charity’s balance sheet.

Signed:

Date: 26[th] January 2023

The Epsom and St Helier NHS Trust Charitable Fund Annual Report and Accounts 2021/22

Epsom and St Helier NHS Trust Charitable Fund Funds Statement of Cash Flows for the year ending 31 March 2022

Epsom and St Helier NHS Trust Charitable Fund Funds Statement of Cash Flows for the year ending 31 March 2022
Cash flows from operating activities: Net cash provided by (used in) operating activities Cash flows from investing activities: Dividends, interest and rents from investments Proceeds from sale of investments Purchase of investments Net cash provided by (used in) investing activities Change in cash and cash equivalents in the reporting period Cash and cash equivalents at the beginning of the reporting period Cash and cash equivalents at the end of the reporting period Reconciliation of net income/(expenditure) to net cash flow from operating activities Net income/(expenditure) for the reporting period Adjustments for: (Gains)/losses on investments Dividends, interest and rents from investments (Increase)/decrease in stock (Increase)/decrease in receivables Increase/(decrease) in payables Net cash provided by (used in) operating activities Analysis of cash and cash equivalents Cash at bank and in hand	2021/2022 2020/2021 £'000 £'000 (597) 293 29 27 0 0 0 0
	29 27
	(568) 320
	710 390 142 710 (173) 834 (246) (562) (24) (25) 0 0 0 6 (154) 40
	(597) 293
	142 710

The accompanying notes are an integral part of this cash flow statement.

The Epsom and St Helier NHS Trust Charitable Fund Annual Report and Accounts 2021/2022

Notes on the accounts

Note 1 Accounting Policies

Basis of preparation

The financial statements have been prepared on a going concern basis which the Trustee considers 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.

The Trustee has 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 Trustee has 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 Trustee is 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.

The Charity’s related Trust is – alongside the majority of the NHS – experiencing financial difficulties and did not breakeven during 2021/2022. These issues do not impact on the Charity which has no long term commitments and has a substantial asset base which can readily be liquidated: any future donations will be carefully matched to expenditures, with adequate reserves retained to meet forecasted spend. For this reason the going concern basis has been adopted in preparing these accounts.

The financial statements have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant note(s) to these accounts.

The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102 ) issued on 16 July 214 and the Financial Reporting Standard applicable in the United Kingdom and Republ9ic of Ireland (FRS 102) and the Charities Act 201.

The Trust constitutes a public benefit entity as defined by FRS 102.

Funds structure

Where there is a legal restriction on the purpose to which a fund may be put the fund is classified as a restricted fund. Restricted funds are those where the donor has provided for the donation to be spent in furtherance of a specified charitable purpose. The Charity has 2 restricted funds for Community use and the funds received from NHS Charities Together are classified as restricted.

Those funds which are not restricted income funds are unrestricted income funds. These funds are subdivided between designated (earmarked) funds where the Trustee had set

The Epsom and St Helier NHS Trust Charitable Fund Annual Report and Accounts 2021/2022

aside amounts to be used for specific purposes or which reflect the non-binding wishes of donors and unrestricted funds which are used at the Trustees’ discretion, including the General Fund. The major funds held in each of these categories are disclosed in Note 16.

Incoming resources and revenue recognition

All incoming resources are recognised once the charity has entitlement to the resources, it is probable (more likely than not) that the resources will be received and the monetary value of incoming resources can be measured with sufficient reliability.

Where there are terms or conditions attached to incoming resources, then these terms or conditions must be met before the income is recognised as the entitlement condition will not be satisfied until that point. Where terms or conditions have not been met or uncertainty exists as to whether they can be met then the relevant income is not recognised in the year but deferred and shown on the balance sheet as deferred income.

Incoming resources from legacies

Legacies are accounted for as incoming resources either upon receipt or where the receipt of the legacy is probable. Receipt is probable when:

Confirmation has been received from the representatives of the estate(s) that probate has been granted;
The executors have established that there are sufficient assets in the estate to pay the legacy; and
All conditions attached to the legacy have been fulfilled or are within the charity’s control.

If there is uncertainty as to the amount of the legacy and it cannot be reliably estimated then the legacy is shown as a contingent asset until all of the conditions for income recognition are met.

Other trading activities

Income from other trading activities includes income earned from both trading activities to raise funds for the Charity and income from fundraising events.

Resources expended and irrecoverable VAT

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category of expense shown in the Statement of Financial Activities.

Irrecoverable VAT is charged against the category of resources expended for which it was incurred.

Allocation of support costs

Support costs are those costs which do not relate directly to a single activity. These include some staff costs, costs of administration, internal audit costs, and external audit fees. Support costs have been apportioned between fundraising costs and charitable activities based on the value of these activities compared to the cost base of the Charity. The analysis of support costs and the bases of apportionment applied are shown in Note 9.

The Epsom and St Helier NHS Trust Charitable Fund Annual Report and Accounts 2021/2022

Fundraising costs

The costs of generating funds are those costs attributable to generating income for the charity, other than those costs incurred in undertaking charitable activities or the costs incurred in undertaking trading activities in furtherance of the charity’s objects. The costs of generating funds represent fundraising costs together with investment management fees.

Charitable activities

Costs of charitable activities comprise all costs incurred in the pursuit of the charitable objects of the Charity. These costs, where not wholly attributable, are apportioned between the categories of charitable expenditure in addition to the direct costs. The total costs of each category of charitable expenditure include an apportionment of support costs as shown in Note 9.

Fixed asset investments

Investments are a form of basic financial instrument. Fixed asset investments are initially recognised at their transaction value and are subsequently measured at their fair value (market value) as at the balance sheet date. The Statement of Financial Activities includes the net gains and losses arising on revaluation and disposals throughout the year. Quoted stocks and shares are included in the Balance Sheet at the current market value quoted by the investment analyst, excluding dividend.

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.

Receivables

Receivables are amounts owed to the Charity. They are measured on the basis of their recoverable amount.

Cash and cash equivalents

Cash at bank and in hand is held to meet the day to day running costs of the Charity as they fall due.

Stock

Stocks are held for sale as part of non-charitable trade and are measured at the lower of the cost and net realisable value.

Payables

Payables are amounts owed by the Charity. They are measured at the amount that the Charity expects to have to pay to settle the debt. Amounts which are owed in more than a year are shown as long term payables.

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

The Epsom and St Helier NHS Trust Charitable Fund Annual Report and Accounts 2021/2022

and opening carrying value (purchase date if later). Unrealised gains and losses are calculated as the difference between the market value at the year end and opening carrying value (or purchase date if later).

Critical accounting judgments and sources of estimation uncertainty

In the application of the Charity’s accounting policies 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. These estimates, judgements and assumptions are made based on a combination of past experience, professional expert advice and other evidence that is relevant to the particular circumstance. The Trust has no material critical accounting judgments and sources of estimation uncertainty.

Note 2 Related party transactions

The Charity is a subsidiary of its corporate Trustee. The total contribution made by the Charity to its parent - Epsom and St Helier University Hospitals NHS Trust – was £172,000 for revenue (2020/2021: £149,000) and £350,000 for Capital projects (2020/2021: £nil).

The Trust makes a number of clerical services available to the Charity, by agreement with the Trustee. These include administrative services at a cost of £43,000 (£39,000 in 2020/2021). The cost of these services in disclosed in Note 9 below.

These related party transactions take place on an arm’s length basis.

Note 3 Income from donations and legacies

Voluntary Income: Donations Legacies Trading Income Total Voluntary Income:	2021/2022 Unrestricted Restricted Total Funds Funds Funds £'000 £'000 £'000 236 0 236 159 0 159 30 0 30 425 0 425	2020/2021 Total Funds £'000 402 354 11
		767

Donations from individuals are gifts from members of the public, relatives of patients and staff. This income is collected through collection boxes around the hospitals, from postal donations or donations received via our own Trust Charity website, Virgin Money or Just Giving online web pages or from the contributions from the Fundraising Department.

Note 4 Role of volunteers

Volunteers are not used by the Charity to raise funds. The Charity has some volunteers, normally hospital staff, who administer grants made. When undertaking work for the Charity these volunteers are reimbursed for expenses incurred.

The Epsom and St Helier NHS Trust Charitable Fund Annual Report and Accounts 2021/2022

Note 5 Gross Investment Income

Note 5 Gross Investment Income
Fixed asset equity and similar investments	2021/2022 Unrestricted Restricted Total Funds Funds Funds £'000 £'000 £'000 25 2 27 25 2 27	2020/2021 Total Funds £'000 27
		42

Note 6 Analysis of expenditure on raising funds

During the year, the Trust employed a Fundraising Team. Fund raising costs incurred in the 2021/2022 were £85,776, £84,566 of which was staff costs. There were two full time employees in the team for most of the year, one leaving in November 2021. They are substantially employed by the Trust and recharged in full to the Charity. Of the £84,566 payroll cost, £9,511 was employer’s pension contributions, and £7,467 employer’s National Insurance Contribution. Both employees were members of the NHS Pension Scheme, which is a defined benefit scheme. However, as the schemes liabilities and assets cannot be attributed to each member the Trust (and the Charity) accounts for the scheme as if it was a defined contribution scheme, expensing contributions in the year they are incurred.

Note 7 Analysis of charitable expenditure

All of the charitable expenditure was in the form of grant funding, except for the expenses incurred by the Fundraising Department. Grants were approved to carry out activities that will benefit NHS patients and their families.

Patients welfare and amenities Staff welfare and amenities Research Expenditure Donations of equipment and services to the Trust Volunteers and miscellaneous expenses	2021/2022 Grant funded activity Support costs Total Expenditure £'000 £'000 £'000 1 0 1 167 12 179 1 0 1 538 36 574 1 0 1 708 48 756	2020/2021 Total Expenditure £'000 1 213 1 182 0
		397

The Epsom and St Helier NHS Trust Charitable Fund Annual Report and Accounts 2021/2022

Note 8 Analysis of grants

The total cost of making grants, including support costs, is disclosed on the face of the Statement of Financial Activities and the actual funds spent on each category of charitable activity.

The Trustee operate a scheme of delegation for the majority of the charitable funds, under which fund advisors manage the day to day disbursements on their projects in accordance with the directions set out by the Trustee in charity standing orders and financial instructions. Funds managed under the scheme of delegation represent ongoing activities and it is not possible to segment these activities into discrete individual grant awards

Patients welfare and amenities Staff welfare and amenities Research Expenditure Donations of equipment and services to the Trust Volunteers and other expenses	2021/2022 Paid to Individuals Paid to Institutions Grant funded activity Support costs Total Expenditure £’000 £’000 £’000 £’000 £’000 1 0 1 0 1 20 147 167 12 179 0 1 0 0 1 3 535 538 36 574 1 0 1 0 1 25 683 708 48 756	2020/2021 Total Expenditure £’000 1 213 1 182 0
		397

Note 9 Allocation of support costs and overheads

Patients welfare and amenities Staff welfare and amenities Research Expenditure Donations of equipment and services to the Trust Volunteers and miscellaneous expenses	2021/2022 Direct expenditure Support costs Total Expenditure £’000 £’000 £’000 1 0 1 167 12 179 1 0 1 538 36 574 1 0 1 708 48 756	2020/2021 Direct expenditure Support costs Total Expenditure £’000 £’000 £’000 1 1 1 191 22 213 1 0 1 163 19 182 0 0 0
		356 41 397

Support costs in 2021/2022 are as follows:

Support costs analysis Staff recharge Audit fees Accounts Software Total Costs	£’000 43 3 2
	48

Supports costs are apportioned to spend based on a simple ratio of that spend to the total charitable spend in the year.

The Epsom and St Helier NHS Trust Charitable Fund Annual Report and Accounts 2021/2022

Note 10 Trustees’ remuneration, benefits and expenses

The Charity’s Trustee gives their time freely and receives no remuneration for the work that they undertake as Trustee.

Note 11 Analysis of staff costs and remuneration of key management personnel

The Charity does not directly employ staff but is recharged for work performed for the Charity by staff employed by Epsom and St Helier University Hospitals NHS Trust. These costs are disclosed in Note 9 above and total £43,000. An analysis of these costs is as follows:

Charitable Fund Accountant Cashiers Accounts assistant Total Costs	£’000 36 5 1
	43

The average number of full time equivalent employees during the year was 1 (2020/2021 1) with all employees involved in providing support services to charitable activities or the governance of the Charity.

Note 12 Auditor’s remuneration

The Audit remuneration of £3,190 (2020/2021: £3,660) related solely to the audit with no other additional work being undertaken.

Note 13 Fixed asset investments

Reconciliation of movements in investments in the year:

Market value brought forward Add: additions to investments at cost Less: disposals at carrying value Add net gain(loss) on revaluation/Other movements Market value as at 31st March	2021/2022 £’000 2,973 325 (354) 271 3,215	2020/2021 £’000 2,413 0 0 560 2,973

There were no additions or disposals from the investment account during 2020/21.

Fixed asset investments by type:

Investments - Fixed Interest UK Equities Overseas Equities UK Bonds Property/ Alternatives Multi Asset fund Total listed investments Cash held as part of the investment portfolio	2021/2022 £’000 0 141 1,044 168 232 1,431 3,016 199 3,215	2020/2021 £’000 0 121 1,009 182 200 1,357
		2,869 104
		2,973

All investments are shown at their market value.

The Charity does not make use of derivatives and similar complex financial instruments.

The Epsom and St Helier NHS Trust Charitable Fund Annual Report and Accounts 2021/2022

Note 14 Current receivables

Receivables due in less than a year:

Accrued income	2021/2022 £’000 15 15	2020/2021 £’000 15
		21

There are no receivables due in over a year.

Note 15 Liabilities

Liabilities due in less than a year:

Accruals for grants owed to NHS bodies Other accruals	2021/2022 £’000 106 21 127	2020/2021 £’000 276 4
		280

There are no liabilities due in over a year.

Note 16 Analysis of charitable funds

Analysis of restricted fund movements

The restricted fund is for use at the Trust’s Surrey Community healthcare premises.

Molesley Hospital and Harrowlands NHS Charities Together	Balance brought forward Income Expenditure Transfers Gains and Losses Fund carried forward £'000 £'000 £'000 £'000 £'000 £'000 217 2 (5) 0 16 230 26 (26) 0 0 0
	243 2 (31) 0 16 230

Analysis of unrestricted and material designated fund movements

Epsom Cardiac Services Epsom Butterfly Service General St Helier fund for Blood Disorders R&D Fundraising St Helier A&E St Helier Dermatology SWL EOC Others	Balance brought forward Income Expenditure Transfers Gains and Losses Fund carried forward £'000 £'000 £'000 £'000 £'000 £'000 662 4 (327) 0 39 378 219 22 (7) 0 17 251 139 46 (12) (86) 9 132 103 38 (3) 0 9 145 129 1 (4) 10 137 0 125 (2) 5 128 97 1 (2) (2) 7 101 348 4 (177) 31 195 1,479 208 (307) 91 114 1,582
	3,176 449 (841) 3 231 3,016

Epsom Cardiac Services
Epsom Butterfly Service
General
St Helier fund for Blood
Disorders
R&D Fundraising
St Helier A&E
St Helier Dermatology
SWL EOC
Others

Balance
brought
forward
Income
Expenditure
Transfers
Gains and
Losses
Fund
carried
forward
£'000
£'000
£'000
£'000
£'000
£'000
662
4
(327)
0
39
378
219
22
(7)
0
17
251
139
46
(12)
(86)
9
132
103
38
(3)
0
9
145
129
1
(4)
10
137
0
125
(2)
5
128
97
1
(2)
(2)
7
101
348
4
(177)
31
195
1,479
208
(307)
91
114
1,582

3,176
449
(841)
3
231
3,016

The Trustee set an opening or closing balance of £100,000 or above as the threshold for the separate reporting of material designated (earmarked) funds. In the interests of accountability and transparency a complete breakdown of all such funds is available upon written request .

The Epsom and St Helier NHS Trust Charitable Fund Annual Report and Accounts 2021/2022

The objects of each of the restricted and designated unrestricted funds are as follows:

Epsom Invasive Cardiac Services Designated to be spent on Cardiac Services at Epsom Hospital Butterfly Centre Designated to be spent by the Butterfly Centres at both Epsom and St Helier Hospitals Molesley Hospital Designated to be spent for Patients and /staff at Molesey Hospital General Fund The Charity’s general fund to be spent on its objectives St Heleir Fund for Blood Disorders Designated to be spent within the Haematology Department at St Helier R&D Fundraising Designated to be spent by the R&D Department St Helier A&E Designated to be spent by the A&E Department at St Helier St Heleir Deramtology Designated to be spent by the Dermatology Department at St Helier

The General Fund includes all donations for which a donor has not expressed any preference as to how the funds shall be spent and the unrestricted income accruing to the Charity. These funds are applied for any charitable purpose to the benefit of the patients of Epsom and St Helier University Hospital NHS Trust at the absolute discretion of the Trustee.

Note 17 Total return on investment

No investments are held on a total return basis.

Note 18 Transfers between funds

£86,000 was transferred between Unrestricted Funds and the General Fund during 2021/2022 (2020/2021 £346,000). In 2021/22 this transfer related to the cost of the Charity’s fund raising team.