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2021-03-31-accounts

NorthCare Charity

Annual report and accounts for the year ended 31[st] March 2021

Registered charity number 1049226

Principal office: Trust Executive, Stott Lane, Salford M6 8HD

NorthCare Charity Annual Report 2020/21

Page 1

Sections Sections Page
1 Foreword 3
2 Administrative details 3
3 Professional Advisers 3 - 4
4 Trustee 4
5 Structure, governance and management 5 - 6
6 Risk Management and reserves policy 6
7 Fundraising 7
8 Objectives and strategy 7
9 Annual review 8 - 9
10 Financial review 9 – 12
NorthCare Charity Annual Accounts
Statement of Trustee’s Responsibilities 13
Independent Auditors Report to the members of the Northcare 14
Charity
Statement of Financial Activities 17
Notes to the Accounts 20-28

NorthCare Charity Annual Report 2020/21

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Report of the Trustee for the year ended 31 March 2021

Foreword

The Corporate Trustee is pleased to present the Charitable Funds Annual Report together with the audited accounts for the year ended 31 March 2021. In this financial year, with thanks to the generosity of the public and organisations that support our Charity, £717k of income was received. During the year, £2,124k was spent by the Charity to complement the services provided by the Foundation Trust.

The Charity’s Annual report and accounts have been prepared by the Corporate Trustee in accordance with Part 8 of the Charities Act 2011 and the Charities (Accounts and Reports) Regulations 2008. The Charity’s Report and Accounts include all the separately established funds for which the Salford Royal NHS Foundation Trust is the sole beneficiary.

Administrative Details

The Corporate Trustee of the Charity is the Salford Royal NHS Foundation Trust. The members of the Foundation Trust Board who represented the Corporate Trustee during the year on the Charitable Funds Committee (CFC) were as follows:

Mr James Potter - Chairman, Salford Royal NHS Foundation Trust
(Retired 14 October 2020)
Professor Chris Reilly - Non-executive Member
Mrs Christine Mayer CBE - Non-executive Member (Acting Chairman from 15
October 2020 to 31 December 2020)
Dr Hamish Steadman - Non-executive Member
Mr Kieran Charleson - Non-executive Member and Chair of CFC
Mr Tim Crowley - Non-executive Member
Mrs Carmen Drinkwater - Non-executive Member
Professor Michael Luger - Chairman, Salford Royal NHS Foundation Trust
(From 1 January 2021)

Professional Advisers

The Charity had access to the following professional advisers during the financial year:

Bankers Government Banking Service c/o
Lloyds Bank PLC Corporate Services Team
King Street The Royal Bank of Scotland
Manchester Government Banking CST
M2 4LQ 2ndFloor, 280 Bishopsgate
London,
EC2M 4RB

NorthCare Charity Annual Report 2020/21

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Investment Fund Statutory Auditors, Solicitors
Managers Chartered Accountants
Investec Wealth & Mazars Hill Dickinson
Investment Limited 1 St Peters Square 1 St Paul’s Square
2 Gresham Street Manchester Old Hall Street
London M2 3DE Liverpool
EC2V 7QN L3 9SJ

NorthCare Charity was registered with the Charity Commission on 15 September 1995. The Charity is a public benefit entity, i.e. an entity whose primary objective is to provide goods or services for community or social benefit and where any income and endowments have been received with a view to supporting the entity’s primary objective rather than for a financial return to equity holders.

The Charity was previously called the Salford Royal NHS Foundation Trust General Charitable Fund, but formally adopted the name of the NorthCare Charity in November 2020 to reflect the anticipated expansion of the Corporate Trustee to include Fairfield General Hospital, Rochdale Infirmary and the Royal Oldham Hospital.

The Charity is constituted of 25 Specific Charities (2019/20: 25) further devolved into 188 Designated Funds (2019/20: 188). The Charity expects at least one third of the opening balances to be spent within the year and an annual review is carried out to check whether there has been any movement on the funds. Where this has not been the case, we contact the Fund Holders who may agree that the funds be transferred to a similar fund within their directorate; this would then enable them to find a potential use for the funds. No such transfers took place in this year.

The notes to the Annual Accounts distinguish the types of funds held and disclose separately all material funds.

Charitable funds received by the Charity are accepted, held and administered as funds and property held on trust 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 and these funds are held on trust by the corporate body.

Trustee

The Salford Royal NHS Foundation Trust is the Corporate Trustee of the Charity governed by the laws applicable to Trusts, principally the Trustees Act 2000 and the Charities Act 2011.

The Foundation Trust’s Board of Directors devolved responsibility for the ongoing management of the funds to the Charitable Funds Committee which administers the funds on behalf of the Corporate Trustee. This Committee has its own terms of reference and a membership compromising of all non-executive directors of the Group CIC supported, as required, by: the Chief Finance Officer of Group CIC; Executive

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Directors of Finance; Care Organisation Chief Officers and/or Directors of Finance and representatives of the current investment advisors.

The Charitable Funds Committee met five times during the financial year with attendance as follows:

Group CIC Non-Executives and members of the
CFC		 Jul-20 **Aug-20 *** Nov-20 Jan-21 Mar-21
Mr Kieran Charleson(Chariman of CFC) Y Y Y Y Y
Mr Tim Crowley Y Y Y Y Y
Mrs Carmen Drinkwater Y Y N Y Y
Professor Michael Luger(from January2021) n/a n/a n/a Y Y
Mrs Christine Mayer CBE Y N Y Y N
Mr James Potter(retired October 2020) Y Y n/a n/a n/a
Professor Chris Reilly Y Y Y Y Y
Dr Hamish Steadman Y Y Y Y Y
* Extraordinarymeeting

The Committee is supported by the Group Head of Financial Control. Representatives of the Investment Fund Managers and the External Audit team attend as required to provide specialist advice, feedback and support.

The Group Head of Financial Control, under a scheme of delegated authority approved by the Corporate Trustee, has responsibility for the management of the Charitable Funds. Delegation of the responsibility for approving expenditure is set out in the Foundation Trust’s Standing Orders.

The Group Financial Accountant acted as the principal officer overseeing the day-to-day financial management of the charitable funds during the year.

Structure, Governance and Management

The Charity’s General Fund was established using the NHS Charitable Funds’ Model Declaration of Trust and all funds held on trust as at the registration date were either part of that unrestricted fund or registered as separate funds under the main Charity. Subsequent donations and gifts received by the Charity that are attributable to the original funds are added to those fund balances within the existing Charity.

The Corporate Trustee fulfils its legal duty by ensuring that funds are spent in accordance with the objects of each fund and by designating funds the Corporate Trustee respects the wishes of the donors.

NorthCare Charity Annual Report 2020/21

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Where funds have been received with specific restrictions set by the donor a restricted fund is established.

The charitable funds available for spending are allocated to specialties within the Trust’s management structure. Each allocation is managed by use of a designated fund within the general unrestricted fund. For example within the general unrestricted fund of General Surgery and Gastroenterology Department Fund there are designated funds that include research and development in surgery, intestinal failure and surgical critical care.

Non-executive members of the Board are appointed by the Council of Governors and Executive Members are subject to recruitment by the Board of Directors. Members of the Board and Charitable Funds Committee are not individual trustees under Charity law but act as agents on behalf of the Corporate Trustee.

Acting for the Corporate Trustee the Charitable Funds Committee is responsible for the overall management of the Charitable Funds. The Committee is required to:

The accounting records and day to day administration of the funds are dealt with by the Finance Department located in Turnpike House, 631 Eccles New Road, Salford, M50 1SY.

Risk Management and reserves policy

The major risks to which the Charity is exposed have been identified and considered. There are systems in place to mitigate those risks. The most significant risks identified are possible losses from the fall in the value of the investments and the level of reserves available to mitigate the impact of such losses. These have been carefully considered and there are procedures in place to regularly review the investment policy and to ensure that both spending and financial commitments remain in line with income.

The Charity’s income and expenditure is monitored on a monthly basis to record trends and make recommendations to the Charitable Funds Committee as part of the risk management process.

NorthCare Charity Annual Report 2020/21

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Fundraising

There are no fundraising activities undertaken in 2020/21 by the Charity outside of donations and legacies and no third parties are employed to fundraise on behalf of the Charity.

The Charity implemented a fundraising plan during 2020/21 to increase funds available to invest in the Charity’s objectives. Details of costs incurred by the fundraising team can be found in the financial review. Members of the public can donate to the Charity and details of this are included within Salford Royal NHS Foundation Trust internet pages.

Objectives and Strategy

The Charity’s main fund has NHS wide objectives as follows:

‘The Trustee shall hold the trust fund upon trust to apply the income, and at their discretion, so far as may be permissible, the capital, for any charitable purpose or purposes relating to the National Health Service’.

This is explained in more detail in the aims of the Charity approved by the Corporate Trustee which are:

To enhance the services provided by Salford Royal NHS Foundation Trust by:

Ensuring that:

The Trustee has due regard to the Charity Commission guidance on public benefit when reviewing and confirming these objectives.

NorthCare Charity Annual Report 2020/21

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Annual Review

During the year the funds continued to support a wide range of charitable and health related activities benefiting both patients and staff. In general they are used to purchase goods and services to complement those provided by the NHS. For example, during the year, the charitable funds were used to purchase building modifications and to improve the patient experience. The Charity’s funds also help to advance education and training of staff by providing assistance for the costs of attendance at courses and conferences. The funds are also used to support medical research with an aim to promote health and improve treatment and care for patients.

Grants

Grants are normally made from the Charity’s unrestricted funds – these comprise of two elements:

Reserves Policy

The Charity maintains a policy which states that each fund should spend at least one third of its opening balances in the year unless there is an approved policy to hold balances for future use. The Corporate Trustee’s strategy is to credit investment income to those funds that have met this criterion during the financial year with any undistributed investment income being held in the Specific Donations General Fund. During the year there was investment income of £97k (2019/20: £131k) and £760k net gains (realised and unrealised) on investments (2019/20: net losses of £314k). The Specific Donations General Fund has a balance as at 31st March 2021 of £1.5million (2019/20 £2.3 million). At 31st March 2021 there were no future commitments held against the Specific Donations General Fund.

Future Plans

The main aim of the Charity remains as in previous years to increase support for patient

NorthCare Charity Annual Report 2020/21

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and staff welfare and education and to provide support for medical research throughout the Trust’.

The Northern Care Alliance (NCA) is developing a Fundraising Strategy for the Group covering SRFT and PAT (excluding the North Manchester site which transferred to Manchester University NHS Foundation Trust on 1 April 2021). The strategy covers the period 2020/21 to 2024/25 and combines a place-based approach and a focus on specialist services. The strategy will set out charitable income targets for the five-year period, the investment required to establish a dedicated fundraising function and how the strategy will be mobilised.

The Charity was renamed the NorthCare Charity to reflect the increased scope to covering both Salford Royal and Pennine Acute hospitals excluding North Manchester.

The funds held within the Pennine Acute Hospitals Charity were transferred to the NorthCare Charity following the formal acquisition of Pennine Acute by Salford Royal NHS Foundation Trust on the 1[st] October 2021.

The Charity will continue to closely review the performance of its investments and the impact of the on-going Covid-19 pandemic.

Financial Review

The annual accounts for the Charity for 2020/21 include comparator financial information for the previous financial year.

The net assets of the Charitable Funds as at 31 March 2021 were £4.7 million (2019/20: £5.3million). The overall decrease in net assets of £648k is largely attributable to the expenditure on charitable activities in year of £1,940k, offset by income of £717k and gains on investments of £760k.

Income

The Charity continues to rely on donations and investment income for its main source of funding. Donations and legacies account for 87% of the Charity’s 2020/21 income with investment income making up 13%.

Overall income for the year decreased from £909k to £717k compared to 2019/20. The Charity received £211k from NHS Charities Together which represented donations made to the NHS during the Covid-19 pandemic. The Charity received income of £97k from legacies in 2020/21 (2019/20 £104k).

The financial year saw increased uncertainties in the world’s economies due to COVID19 and subsequently the investment income earned during the year (£97k) was considerably lower (26%) than that received in the previous year 2019/20 (£131k).

NorthCare Charity Annual Report 2020/21

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Expenditure

The Charity’s total expenditure for 2020/21 was £2,124k, an increase of £1,724k on the expenditure reported in the previous financial year. The main reason for the increase in expenditure is due to the purchase of a surgical robot for £1,600k.

Medical Research

£67k was spent from the research funds during the year, a decrease from £75k in 2019/20. £35k related to the Trust’s annual management charge for administering the research funds.

Purchase of Equipment

Expenditure increased significantly last financial year compared to previous years £1,691k (2019/20 £91k), largely due to the purchase of the surgical robot £1,600k.

Staff Education and Welfare

The Charity incurred expenditure of £33k on staff education and welfare in 2020/21, a decrease from 2019/20 where expenditure was £163k. Providing access to training and development for staff beyond mandatory requirements gives opportunities for staff to establish wider professional networks, to receive training and development from leading individuals working in their chosen specialty and promotes better, safer care for patients.

Patient education and welfare

The Charity incurred expenditure of £140k (2019/20 £39k) in enhancing the patient education and welfare.

Management Costs

The Charity has no directly employed staff and relies on the Trust to provide administrative and financial services for which it received a charge of £33k in the current financial year (2019/20 £26k). The service includes the day-to-day management of the funds and the preparation of all statutory reports and returns. All funds held for the purposes of research have been charged a fair share of a further management cost charge of £35k (2019/20 £35k) reflecting the additional resource required to administer these funds. These costs have been allocated to funds and are included in the above costs for equipment, research, staff and patient related funds.

In addition to this fundraising costs of £152k (2019/20 £26k) have been incurred this financial year, these costs represent £115k for salaries incurred by the fundraising team and £37k for the overhead costs of the hospital’s fundraising office.

NorthCare Charity Annual Report 2020/21

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Investments

The Charity’s investments are managed by the investment managers on a discretionary basis with an objective to provide a balance between capital growth and income whilst maintaining a medium level of risk. The Charitable Funds Committee receives regular updates from the investment advisers including formal quarterly reports and uses this information to review and confirm the policy on managing the portfolio.

The Corporate Trustee has adopted an ethical investment policy for the Charity as follows:

‘As the Trust is required, as part of the NHS, to promote health and to provide healthcare, there shall be no investment in companies or other organisations whose main or principal business is perceived as injurious to health or is life threatening. Included within this broad criterion are firms involved in the manufacture of cigarettes, alcoholic beverages, armaments, explosives or guns’.

The investments saw growth during the majority of 2020/21 and made a good recovery following the impact of the Covid-19 pandemic on the previous year’s global financial markets. The investment portfolio experienced an overall gain in value of £733k reflecting these market conditions (2019/20: £314k loss).

During 2020/21 £500k was withdrawn from the investment portfolio to enable the purchase of the surgical robot.

Therefore the final investment portfolio was £233k higher than at the end of 2019/20.

Cash Held on Deposit at 31 March



At the Government Banking Service

In Lloyds TSB

Sub-Total

As part of investment portfolio

Total
 2021

£000s
2
744
746
48
794		 2020
£000s
1,213
573
1,786
260
2,047

Cash balances were lower at 31[st] March 2021 when compared to the previous year, largely as a result of the higher level of expenditure made in year.

All cash held as part of the investment portfolio is held in a nominee account with Investec Wealth and Investment Limited.

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As always

The Corporate Trustee would like to thank all patients, relatives, members of the public and other supporters who have made charitable donations during the year.

Approved on behalf of the Corporate Trustee

Signed

Kieran Charleson

Non-Executive Director and Chair of the Charitable Funds Committee

28[th] June 2022

NorthCare Charity Annual Report 2020/21

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NorthCare Charity Accounts 2020/21

Statement of Trustee's Responsibilities

The Trustee is responsible for preparing the Trustees’ Annual Report and the financial statements in accordance

The Charities Act 2011 requires the trustees to prepare financial statements for each financial year. The trustees have to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including FRS 102 the Financial Reporting Standard applicable in the UK and Republic of Ireland.

The trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Charity and of the incoming resources and application of resources, including the income and expenditure, of the Charity for that period.

In preparing these financial statements, the Trustee is required to:

· Select suitable accounting policies and then apply them consistently;

· Observe the methods and principles in the Charities SORP (FRS 102);

· Make judgments and accounting estimates that are reasonable and prudent;

· State whether applicable UK Accounting Standards have been followed, 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 in business.

The Trustee is responsible for keeping adequate accounting records that are sufficient to show and explain the Charity’s transactions and disclose with reasonable accuracy at any time the financial position of the Charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

By Order of the Trustee

Mr K Charleson Chair of the Charitable Funds Committee

Mr I Moston Chief Financial Officer

Date: 28[th] June 2022

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Independellt repl￿1 lo the MeThI￿[s of N(YthCwE Chwity Opinio We have audrted the statements ol Northcare Chariiy Ohe'chari￿l for the Ye￿ 8fided 31 Marth 2021 vthith comptse the Statnent of ACt￿leS. the Balantè Sheet. Statement of Cash flows and notes to Ihe ststements, a summary of5￿￿tr￿a￿t ac£oun1ing pok.cies The financkql repo￿"￿ IramewO￿ Ihal has been a￿l￿rt in preparatkin 15 apph"catAe law an(5 Unrted ￿ngdoM AccounthwwJ Stdntsrd5. inclJd￿9 FRS 102 Yhe Finanaa RewwtiwwJ S￿¢Jard r11c)￿ n the UK and ReputrAic of Iidan(r {United lQnfjdoffl Gene￿ty Accepted Accounti PfaLcel. ITr Qui opwiw. the fnanual 5tatemEWts". - ￿e a ttue an¢J la￿ wew ofthe state of1he thartys alta"t5 a5 31 31 Match 2021 of ts iwKoThe and ewdrhxe lor Iheyear Ihen ended.. . have been prorty ￿epared ￿ accotthce vthh UThted GeneratyAccerAed Accounth" PfaLce", and . Iwe be￿ prepat8d in aCc￿￿an￿ wilh the r8qUt8ments oflhe cornp￿￿S Act 2LWJ6. Basis foropinion We conduded ow audil in accordance vAlh Irbtefflalion￿ Standar(ts on Audthg IUKI IISAS IUK)} and applicab￿ bv. (hJrTespon5tsbb"e5 urvjerthose stsntsrd5 are1uth￿ ¢Je5cth¢J ￿ the Au¢Jloff5 respons1￿"1rtieS for the audrt oflhe financk41 statements se(bon of our report We are independent of chanty in actordance the eth￿1 rewtyements Ihat are idevantto 0￿r auth"1 of the finafic￿l statements in Ihe UK induding the FRC'S EthKal Slandard and we haveful￿18¢ our othet elhic respMs1￿I￿eS in actoidance vAth these requKements. We beb.eve Ihat Ihe Jdrt evldence we have is sufveTht awKowateto p￿D￿de a basi5 forow wrmon. Conthsions rel•tino to ooing concern In audth.ng Ihe ffinancial ststemerts. we have c￿￿￿ded thatlhelru51 use ollhe concern bas of accwnt#¥J in weparaliw of Ihe ftt)aThyal slalements is apwoKthale. Based w the w(xk we have pwformed. we have Dot ithtified any material ￿CertaI)b¢S ￿lati￿J to events Dr ￿￿￿[bon5 Ihai in(AwthJaly 01 coledwely. may cast swJnfficant doubt on Ihe chartys to conbnuÈ as a g￿ng concern for a of al Seast twel¥e nN)nlh5 Irom when the financial slatements ate •Mot￿e￿I0￿ i55ue. Our respl￿511￿.1rties and re5PCrfbsilx"A￿es of Ihe tsuyfees wilh re9￿t to going L￿M are t1estrl)ed In Ihe re￿vant sectK)ns of this rÈtx)rt Othei infowmation The other inf0wmall￿ comk¥i5e5 Ihe InlowTh.￿ I￿￿￿d in Ihe Twu51ees repLrt otheT 1he an(ial slalements and our avditofs report thereon. The lrnstees are responsifAe lor the Olher irrfonTwb'on (kjr Ihe ￿nanc￿l stslemwrts does t￿1 co¥ei Ihe othef ￿f0Mlati￿ atNJ. except to Ihe extent otherwise stated ￿ our reprt we th) notexpress anyfowrn OfassUr￿ conc￿￿th thereon. In our audit ofthe ffiancial statwnts. r¢$w￿$￿'￿ty is to lead Ihe other irfft>rmab"on and. in dcing so. considef whetheithe Olher informalion 15 rnateriany incofiSi￿telrt vrilh the ffftanoal slat￿rents or our knOw￿dge oblalned In Ihe course of the audil, or otheny￿e aA)ears to be rnHtewialty m￿stated N we iden1ty SUL material ￿c￿sIste￿aes or apparent Thi5slalements, we are iequired to del￿nine whether Ihere ts a materia nysstatemenl in the f￿an￿al slatements or mate11￿ of Ihe olherinlottrwl'on. If. ba5erfJ thewowk we have W¢￿￿e$j, we Pag8 14

conchjde that there is a rnatewial rnl5stat￿ ofthi5 Other inlwnaiion. we ate re¢wiied to rep￿ Ihat We have nolhing to rewl in Ihs regard. Opinions on other mattws wesuibed by the CoThwnies Act 2( In uur otxniw, Iia5ed on Ihe w(¥k un(lertaken in the course of the au(l." . the inf0m￿lion gNen in the Trustees, Report inthdes thè DIrect￿S. Report prepared forthè PUWP05es of company law, the finanaal yeai fl¥ Ihe fmanaal ststements are tyepwed 15 consistent Ihe fin￿r￿1 slalements.. and . the owed0￿, Rep￿1 induded within Ihe T￿￿. ReF4)rt ha5 been wepwed ￿ aCC￿[danCe Mlh applicable kgal rewirements. Matters on which WE are required lo by exceptio In hghl of the knffi￿edge and wderslanikng of the thanty and its envrronmenl obtsined in the course of Ihe audit. we have nol mat￿la1 mi5Statements in Ihe ￿"reCtorS. Report wilhin Ihe Tntstees, Repo We have nothing to rewl in respecl of the fc410￿7ThJ matt￿S in relalicffl to Y4ich the Companies Ad 20¢￿ reQUi￿S us to rÈwJrt lo yw If, in our oKMnion'. • adequate and Frfoper accO￿ting records have not been kem. or relwns adequate lor auLfi have not been re￿ived trom btanches not Visited by u5," or . the 5tsternents ate not in al¥ee￿￿￿ Yrilh the accuuntiig rec￿￿5 arKI retuwn5" ' certain disthswès oflntstees. rem￿eratKIn specifiet1 by are not rnade. or we have not received all thè vrfomialhjn ant1 explanab.ons ￿ rewire for our audrt. or the tsuslee5 were not entil￿d to prepare Ihe fmancial stalements in accordance wrth Ihe small COMp￿be5 regine and take advanlage of Ihe small comparies, èxernpt￿ trom the requirement to ptepste a StraleLiC RepowL R¢S￿)n$t1111tfies off Trnstees As explained more fijly in the tru5tees' respons￿l￿b"e5 Statement sel out on page K the trustees (￿knO are al80 the dredots of Ihe chantaNe Comp￿ for the wrposÈs of company lawl arè responsibbe for the preparaliw of the statements and Ixing Satisfi￿ thal1hey give a bue and far view. and for such internal c£Krtrc4 a5 the trustees detewrnine is necessary to enable Ihe piepatalion of anaal slatements thal are free from mater￿1 miSsL￿eMent bthelher due to fraud or error. In weparing the ffianaal slatements. Ihe I￿￿eeS are resportsible assessing Ihe chartys a￿.1￿ to conlinue as a wng concem. disclosing. as ap￿le￿e, mattèrs rekted to g(Ang 0￿CeM and using thè going con￿￿ basi5 of accounling Un￿55 the twuslees erthei intend lo Ivwidate the charity ot to cease operalions, crf have no rea5b"c alternabve to do so. Auditovs ￿spOnsibl11t￿5 fotthe audit of the financial Stste￿￿ts Oui d>iedNes ale to obtain teasonable a55w3nce about vthelhet Ihe fffian(ial slatements as a I￿oIe are tree trom malenal mi5slatemenL vthelhei due lo frau¢J or ewor. and to issue an audrtofs report that include5 our opmion. Reasonable assu[￿Ce is a high level ol assurance bui is not a guaranlee that an autht conthded m accordance wlh ISAS (UK) wil thays delect a material misstalement en it ￿Sts. m￿State￿entS cali arise trom frau¢J or ewror and ale considered matewial if. iNdN¥Jual 01 in the aggregate, they coukl ieasonabty be expected to infiuence Ihe econcffiic ¢Jecisions of use taken cffl the basis oflhe financial slatements. Page 15

IThegulaTrt￿s, mcluding fraud, ale nstances of noTrcornpliance fft laws and regulabons. We desi procedures in I￿e wrth our responsl)ilb"es. outlned above. lo deled maleria rrmgstalemenls . respect of irr8guL4riti"ès. indudirrfj Iraud. Basèd ￿ our understanth.ng ol Ihe chanty and its ath"b"es. we identif￿1 that the principal lists of non-comtAiance vAth laws and regulab'ons rdated to the charrb.es Act 2011. kne charib.es Statement of Recommended Prad]"ce, UK lax legisk7t￿n. pensions legislats"on. emrAoymenl reg￿ats.c￿ and heafih and safety reguLqts"on. anlkbribery. cOrrU￿"0n and fraud, mcnèy laundering, non-C(mnpI￿nCe imrAementab"on of oovemment sumx&ri schemes relatmg to covitk19, aNJ we consdeted the exlent to vthich non-complance rnighl hwe a material effecl on Ihe fnanaal slatements. We also considered those laws and teguLyiions Ihat have a direct impad Ihe prepaMl1c￿ of Ihe fffianaa slatements. such as the com￿1&S Act 20￿. We evaluated Ihe Iwstees. and managemenfs incenlwes and cwtunilies fcff fraudulent man)ulab"on of Ihe financial ststèments thè iisk of override of conlrols} and detethned that Ihe ptillci￿ ri5ts wete reialed to P051ing rnanual ￿uma1 enthes to rna[W￿81e financial pWI￿nance. management bias wdgements assumpb.ons in swJfhifKaDt accounling estimates, in parficular in relalion to use of resln.cted tsjnds. and sunfficanl one-off or unusual transac11c￿9. Our audit woce(knre5 were designed to respond to those KI￿tIfied risks, induding non-com￿1￿ wilh laws and regulab.ons (Irregukirilies) and fraud that are material to the fin￿Cla stalements. Our audt wocedures kndudÈd were not limrtÈd to." . Discussing wrth Ihe trustees and m￿agernent thew polaes and woCe￿re5 regarthng clym￿ance wilh law5 and regulalions" . C(rfrrfnun￿alI￿g idenbffied law5 and regulation5 Ihroughoui ow engagement tearn and remaiThTrJ alert to any ind￿liOnS of no￿ts￿liance th[￿￿out our au(t," and . C(msidering the risk of ads by thè thanty tffiich were contrary trj wlcable laws aTrJ regulalions. incJding fraud. Our audit ill ielalion to fr￿d induded LMJI y￿re not Irnited to" . Makng enqu￿eS of the tmslees and management on ￿elh￿r Ihey had kn(￿￿edge of any acts￿1. suspede(l or aleged fraud", . GaiThno a) underslarKw of the i)temal contrcls eststAished to m￿gale risks relale(1 to fwd: Disajssiw aM￿g51 the eng3getnent team the tisks of fraud, an Adthessing Ihe nsks of fraud through M￿agefflent oveThide of contro15 by Ferfomiing journal enty There are inherent lThrialions in the audrt piocedures described above an¢1 Ihe wimary iesponsibilty the wevention and delection ol irtegulatilie5 inthding fraud rests Yrilh rnanagernent As vnlh any aullit, theTe rel￿a￿ed a risk of no￿detecbOll of ￿egUlaritIes, as these may invofve colusb)n. I￿ery. intent￿nal orniS￿onS. misrepresentalions or Ihe override of intemal contr(ds. A lurfher desuty.on of our responsih"lties foi the audt of Ihe financial statements 15 k)c£led the Financial Reporling Counal's websrte al www.froorg.ukJaudrtotsresponsts"Ib"es. This descriptsNI fl￿ part of (yji authtorfs iepowL Use of the audit weport This rewl 15 made solety to the chwW5 methrs as a body in aCCord￿ce wrth Chapler 3 of Pwt 16 olthè Companies Act 2rMJ6. authl WO￿ has been undertaken so Ihat we might st to the chatity's mernbets Ihose tnattet5 we ate requiied to slate to them in an au(th"lorfs reFX)rt and for no other purpose. To the lulle5t extent pemitled by law, we IA) not accept or assume responsits'lrty to anY￿e ollw Ihan Ihe charity and Ihe chaiity's mernbers as a bo(ty for our audrt for this report, or for Ihe opini￿S we have fomied. Davhj Hoose {Senior Statul¢Ny Auditor} and behall of Mazaw5 LLP ch￿l￿ed Acc(wntsnts Stalutory Auijlor 58 The Rcyewa N0lb"n￿aM NG1 5DW 28th June 2022 Page 16

NorthCare Charity

Statement of Financial Activities for the year ended 31 March 2021

Note
Income and endowments from:
Donations and legacies
3
Income from investments
9
Total income and endowments
Expenditure on:
Raising funds
4
Charitable activities
4
Total Expenditure
Net gains/ (losses) on investments
7
Net income/ (expenditure)
Net movement in funds
Reconciliation of funds
Funds brought forward
Total funds carried forward		 2020/21

All operations are continuing.

The accompanying notes form part of these financial statements.

Page 17

NorthCare Charity Statement of Financial Position as at 31 March 2021

Note
Fixed Assets
Investments
Total Fixed Assets
7
Current Assets
Debtors
Cash at bank and in hand
Total Current Assets
10
Current Liabilities
Creditors: Amounts falling due within one year
11
Net Current Assets
Total Assets less Current Liabilities
Net Assets
The funds of the Charity
Endowment Funds
Restricted
Unrestricted
Total Funds
12,13		 Unrestricted Restricted Endowment
Total
Total
Funds
Funds
Funds
Funds
Funds
2020/21
2019/20
£000
£000
£000
£000
£000
3,942
429
11
4,384
4,149
3,942
429
11
4,384
4,149
21
0
0
21
100
746
0
0
746
1,786
767
0
0
767
1,886
(464)
0
0
(464)
(702)
303
0
0
303
1,184
4,245
429
11
4,687
5,333
4,245
429
11
4,687
5,333
0
0
11
11
11
0
429
0
429
430
4,245
0
0
4,246
4,892
4,246
429
11
4,686
5,333

Page 18

NorthCare Charity Cash flow 2020/21

Cash flow from operating activities
Operational surplus/ deficit
Interest received
Dividends received
Decrease in trade and other receivables
(Decrease)/Increase in trade and other payables
Net cash generated from operating activities
Cashflows from investing activities
Interest received
Dividends received
Reduction in value of investment (withdrawal plus
portfolio management fee)
Net cash generated from 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		 31st March
2021
£000s
(1,407)
(97)
79
(238)
(1,663)
97
526
623
(1,040)
1,786
746		 31st March
2020
£000s
509
(131)
(52)
191
517
131
26
157
674
1,112
1,786

The accounts were approved by the Charitable Funds Committee on 27th June 2022. The notes on pages 21 – 28 form part of these Financial Statements.

Ian Moston Chief Financial Officer 28[th] June 2022

Page 19

NorthCare Charity Accounts 2020/21

Notes to the accounts

1. Accounting Policies

( a ) Basis of preparation The financial statements have been prepared under the historic cost basis of accounting, with the exception of investments which are included at market value. The accounts (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 (FRS 102) issued in October 2019 and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011 and UK Generally Accepted Practice as it applies from 1 January 2019.

The accounts are prepared on a going concern basis. The Trustee considers that there are no material uncertainties about the Charity's ability to continue as a going concern. There are no material uncertainties affecting the current year’s accounts. In future years, the key risks to the Charity are a fall in income from donations or investment income but the Trustee has arrangements in place to mitigate those risks. ( b ) Funds structure Restricted funds are those which are to be used in accordance with specific restrictions imposed by the donor. Where the restriction requires the gift to be invested to produce income but the Trustee has the power to spend the capital, it is classed as expendable endowment. Where the Trustee must permanently maintain the whole fund, it is known as a permanent endowment. The financial statements combine expendable and permanent endowment funds for the purposes of financial reporting. Unrestricted income funds comprise those funds which the Trustee is free to use for any purpose in furtherance of the Charity's 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 particular activity (or activities) in the future. The major funds held in each of these categories are disclosed at Notes 12 & 13. ( c ) Incoming resources All incoming resources are recognised once the Charity has entitlement to the resources, it is probable that the resource will be received and the monetary value can be measured with sufficient reliability. ( d ) Incoming resources from legacies Where a payment has been received or notified as receivable (by the personal representatives) after the accounting year end, but it is clear that it had been agreed by the personal representatives prior to the year end (hence providing evidence of a condition that existed at the balance sheet date), then it has been accrued in the Statement of Financial Activities and the Statement of Financial Position. ( e ) Resources expended Expenditure is recognised when a liability is incurred. Grant commitments are recognised when a constructive obligation arises that results in payment being unavoidable. Grants payable are payments made to third parties (including NHS bodies) in the furtherance of the Charity's objectives. They are accounted for on an accruals basis where the conditions for their payment have been met or where a third party has a reasonable expectation that they will receive the grant. This includes grants paid to NHS bodies. ( f ) Irrecoverable VAT Irrecoverable VAT is charged against the category of resources expended for which it was incurred.

( g ) Allocation of overheads and support costs Overhead and support costs have all been apportioned between Charitable Activities and Governance Costs (Note 4). The costs attributed to Charitable Activities have been further apportioned in proportion to total spend. ( h ) Costs of generating funds The costs of generating funds are the costs of the Common Investment Fund management fees. ( i ) Charitable activity Costs of Charitable Activities comprise all costs in pursuit of the charitable objects of the Charity. These costs comprise direct costs and apportionment of overheads. ( J ) Governance costs Governance Costs comprise all costs incurred in the strategic management of the Charity and ensuring compliance with statutory requirements. These costs include costs related to statutory audit and those overhead and support costs not apportioned to charitable activity.

Page 20

NorthCare Charity Accounts 2020/21

Notes to the accounts

( k ) Research costs

Research costs comprise of grants made for the purpose of non-commercial research carried out within the Trust. All research related expenditure is applied to the Expenditure on Charitable activities section of the Statement of Financial Activities.

( l ) Fixed asset investments

Investments are stated at 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.

( m ) Pooling scheme

An official pooling scheme is in operation covering all funds registered under the Trust's 'Umbrella' registration. The scheme was registered with the Charity Commission on 17 March 1998.

( n ) 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 opening market value (purchase date if later). Unrealised gains and losses are calculated as the difference between the market value at the Statement of Financial Position date and the opening market value (purchase date if later).

( o ) Debtors

Debtors are amounts owed to the charity. They are measured on the basis of their recoverable amount.

( p ) Creditors

Creditors 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 creditors.

( q ) Financial Instruments

The measurement bases and accounting policies in relation to basic financial instruments are disclosed in the accounting policies for investments, debtors and creditors.

( r ) Critical accounting judgements and key sources of estimation uncertainty

Key sources of estimation and uncertainty

Valuation of fixed asset investments

As at 31 March 2021 Investec Wealth Management provided a valuation of the Charity's investment portfolio that has been reported in these accounts. This valuation is based on the latest mid closing price quoted on the stock market or by the fund manager.

Accruals for expenditure not invoiced at the reporting date

At the end of the financial year, the Charity may have received goods and services which have not been invoiced at the reporting date. In these circumstances, an estimated value of the cost is included in the Charity's reported financial results. In some cases the estimated value is based on the quoted value provided by the supplier when the goods were ordered; in other cases, the charge may be estimated based on methods such as the number of hours of services provided or the last price paid for the same goods or service.

Apportionment of income and costs of generating funds across charitable activities

The net income earned by and costs of generating charitable funds including Trusteeship, financial services and research administration are apportioned across the charitable activities based on the average value of each fund during the year. Where a fund has not spent at least 1/3rd of its balance during the year, it is not entitled to receive any net income and this sum is taken to the general fund.

Page 21

NorthCare Charity Accounts 2020/21

Notes to the accounts

2. Related Party Transactions

Salford Royal NHS Foundation Trust is the Corporate Trustee of the Charity. During the year none of the Trust's Directors, Governors or Senior Trust staff or parties related to them were beneficiaries of the Charity or received honoraria, emoluments or expenses in the year. Salford Royal NHS Foundation Trust provided NorthCare with financial services during the year.

The representatives of the Corporate Trustee (Board members) are remunerated by Salford Royal NHS Foundation Trust for which a recharge is made to the Charity based on time spent on charitable funds matters which is disclosed as part of the costs of the Charity in Note 4.

Page 10 of the annual report provide a more detailed breakdown of the expenditure within the accounts.

The Charity has not purchased trustee indemnity insurance.

3. Voluntary Income

Donations from individuals
Corporate donations
Legacies		 Unrestricted
Restricted
Total
Total
Funds
Funds
2020/21
2019/20
£000
£000
£000
£000
158
0
158
674
365
0
365
0
97
0
97
104
620
0
620
778

In addition to the amounts above the Charity earned £97k from investments in 2020/21 (£131k in 2019/20).

In 2020/21 the Charity received seven legacies of which three exceed £20k, one was £31k for the benefit of renal services, one for £25k for general purposes and another for £20k which was split equally between general purposes

Page 22

NorthCare Charity Accounts 2020/21

Notes to the accounts

4. Charitable Expenditure

The Charity undertook direct charitable activities, mainly education and training and made available grant support to the Trust in support of a range of charitable activities including research.

The administration costs shown below are administration costs that have been apportioned across the charitable activities. The following table provides a breakdown of how the administration costs have been apportioned across the charitable activity types.

Charitable activities;
Research
Purchase of equipment
Staff education and welfare
Patient education and welfare
Governance costs
Expenditure on charitable activities
Expenditure on raising funds
Investment Management Costs
Fund Raising Salaries
Fund Raising Non Pay Costs
Total resources expended		 31 March 2021

Page 23

NorthCare Charity Accounts 2020/21

Notes to the accounts

5. Staff Costs

During the year the Charity had no directly employed staff but did incur administration costs of £35k (£29k, 2019/20) and governance costs of £8k (2019/20, £7k) provided by staff directly employed by Salford Royal NHS Foundation Trust.

6. Auditor's Remuneration

The auditor's remuneration of £8,323 (2019/20 - £6,900) related solely to the audit of the accounts with no additional work undertaken.

7. Fixed Asset Investments

Movement in fixed asset investments

Market value brought forward
Additions at cost
Disposals at carrying cost
Net gain/(loss) on revaluation
Increase/(Reduction) in cash held at Investec
Market value at 31st March
Historic cost at 31 March		 Total
2020/21
£000
4,149
1,214
(1,433)
664
(212)
4,382
3,169		 Total
2019/20
£000
4,488
495
(530)
(487)
183
4,149
3,616

Fixed asset investments

Fixed asset investments
UK Listed Investments (Including Fixed Interest & Property)
Outside of UK investments listed on the stock exchange
Fixed asset investments - subtotal
Cash held as part of investment portfolio
Total at 31 March
Net gains and losses on investment assets
Unrealised gain/(loss) on revaluation
Realised gain/(loss) on sale of investments
Total		 Total
2020/21
£000
2,303
2,031
4,334
48
4,382
Total
2020/21
£000
664
96
760		 Total
2019/20
£000
2,151
1,738
3,889
260
4,149
Total
2019/20
£000
(487)
173
(314)

The Charity held two investments as at 31st March 2021 with a value over 5% of the total portfolio, a holding in Baillie Gifford America, 6.83% and Vanguard Funds America, 9.92%.

Page 24

NorthCare Charity Accounts 2020/21

Notes to the accounts

8. Fixed Asset Investments (Continued)

All investments are carried at their fair value.

The main risk from financial instruments lies in the combination of uncertain investment markets and volatility in yield. Due to the outbreak of COVID-19 and the ongoing pandemic, there has been an increase in volatility and the market has favoured a lower risk investments. As the Trustee has a low to medium risk approach this has not resulted in significant shift in investments held by the Charity.

As a result of the national lockdowns within the developed world, economic growth has turned negative and is unlikely to return to pre-COVID levels before 2021. Portfolio returns were therefore weak in the year to 31[st] March but have since seen a meaningful bounce (as at August 2020) as countries seek a return to normality and is reflected in the Charity portfolio at that point.

Equity returns are expected to improve with a strengthening economy. Similarly, in a low interest rate environment, the current demand for high quality corporate bonds has continued to depress the yield.

Liquidity risk is anticipated to be low as all assets are traded and the commitment to intervention by central banks and market regulators has continued to provide for orderly trading in the markets and so the ability to buy and see quoted equities and stock is anticipated to continue. The Charities investments are mainly traded in markets with good liquidity and high trading volumes. The majority of the Charities investment holdings are not held in markets subject to exchange controls or trading restrictions. However the charity property funds are currently ‘gated’ for sale and purchases due to uncertainty in the property market and the Charity’s advisors are expecting them to re-open within the next year.

The Charity manages these investment risks by retaining expert advisors and operating an investment policy that provides for a high degree of diversification of holdings within investment asset classes.

The Charity does not make use of derivatives and similar complex financial instruments as it takes the view that investments are held for their long term yield total return and historic studies of quoted financial instruments have shown that volatility in any particular 5 year period will normally be corrected.

9. Investment Income

Income received from quoted investments
Interest on cash held on deposit and at bank
Total		 Total
2020/21
£000
97
0
97		 Total
2019/20
£000
127
4
131

The Charity has appointed Investec Wealth & Investment Limited, 2 Gresham Street, London, EC2V 7QN as the specialist investment manager for the Charity's investment portfolio. They provided the market value of investments as at 31 March 2021 and also as at 31 March 2020.

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NorthCare Charity Accounts 2020/21

Notes to the accounts

10. Current Assets

Debtors under 1 year
Other debtors
Total
Cash at bank
Lloyds TSB - Current Account
Government Banking Service
Total
11.Current Liabilities
Creditors under 1 year
Salford Royal NHS Foundation Trust*
Accruals
Other creditors - Provisions for Commitments
Total		 Total
2020/21
£000
21
21
Total
2020/21
£000
2
744
746
Total
2020/21
£000
456
8
0
464		 Total
2019/20
£000
100
100
Total
2019/20
£000
1,213
573
1,786
Total
2019/20
£000
637
65
0
702

12. Analysis of Funds

The Charity has 181 unrestricted funds . Individual funds with material balances (greater than £40K) are

Unrestricted Funds
Specfic Donations General*
Hope General
Renal Services Fund
Heart Care
Neurosurgery
Trauma & Orthopaedics
Umbrella Charity
Breast Fund
Haematology Department
Neurology
Salford Covid-19 Donations
Icu Patients
Reache North West
Anaesthetics Department Fund
Movement Disorder Fund
Diabetics Dept Nurses
Dermatology Department
Neuro Enterology
Other		 Opening
Incoming
Resources
Closing
balance
resources
expended
Balance
£000
£000
£000
£000
2,293
835
(1,501)
1,627
219
233
(2)
450
204
37
(12)
229
144
5
(3)
146
129
7
(7)
129
111
0
(1)
110
106
0
0
106
82
0
(1)
81
72
6
(1)
77
69
2
(1)
70
0
212
(145)
67
61
7
(1)
67
58
7
(1)
64
63
0
(1)
62
48
13
(1)
60
56
0
(2)
54
48
0
0
48
53
0
(21)
32
1,077
113
(425)
766
4,893
1,477
(2,125)
4,245

There are 25 charities within the umbrella charity as set out in Note 15. The 181 funds above are contained within these charities and are un-restricted funds.

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NorthCare Charity Accounts 2020/21

Notes to the accounts

13. Analysis of Funds (Continued)

Restricted funds
Neurosurgery
Henry Richardson
Endowed Fund Accumulated Income		 Opening
Incoming
Resources
Gains and
Closing
balance
resources
expended
losses
balance
£000
£000
£000
£000
£000
405
0
0
0
405
22
0
-2
0
20
3
1
0
0
4
430
1
-2
0
429

Henry Richardson Fund - This was a legacy received for the purposes of research carried out at Salford Royal NHS Foundation Trust.

Endowed funds

The Charity has six small endowment funds all of which were given by an anonymous donor. The purposes of these funds are to provide a prize, from the interest earned, in recognition of the achievement of junior members of staff.

Endowed funds
Post Grad Centre
Cardio Respiratiry
Elderly Care
Immunology
Haematology
John Harvey Green Fund		 Capital
Endowed
2020/21
£000
1.5
2.0
2.0
1.5
1.5
2.5
11.0		 Capital
Endowed
2019/20
£000
1.5
2.0
2.0
1.5
1.5
2.5
11.0

All of the above funds are expendable endowments.

14. Subsequent Events

Merger with The Pennine Acute Hospitals Charity

On the 1st October 2021 Salford Royal NHS Foundation Trust formally acquired the assets and services of the Pennine Acute NHS Trust, comprising of Fairfield General Hospital, Rochdale Infirmary, the Royal Oldham Hospital and all related services.

Pennine Acute was dissolved on this date and, as Pennine Acute was the Corporate Trustee for The Pennine Acute Hospitals Charity, the funds held under the Pennine Acute Charity transferred to the NorthCare Charity.

Page 27

NorthCare Charity Accounts 2020/21

Notes to the accounts

Pennine Acute

As a consequence of NHS reorganisation as of 1st October 2021 the NorthCare Charity has received £1.9m charitable funds from the Pennine Acute Charity and negotiations have been ongoing with NHSi and Pennine Acute Hospital since 31 March 2020 to facilitate the transfer between the two trusts.

15. Specific Charities

The main Charity, Salford Royal NHS Foundation Trust is constituted of 25 specific charities as follows: 1049226-1 General Surgery and Gastroenterology Department Fund 1049226-2 ENT Department Fund 1049226-3 Anaesthetics Department Fund 1049226-4 Intestinal Failure Department Fund 1049226-5 Obstetrics and Gynaecology Department Fund 1049226-7 Theatres Department Fund 1049226-8 Orthopaedics Department Fund 1049226-9 Emergency Department 1049226-10 Neurosciences Department Fund 1049226-11 Clinical Radiology Department Fund 1049226-12 General Medicine Department Fund 1049226-13 Cardiac Medicine Department Fund 1049226-14 Intensive Care Department Fund 1049226-15 Pathology Department Fund 1049226-16 Elderly Care Services Department Fund 1049226-17 Rheumatology Department Fund 1049226-18 Dermatology Department Fund 1049226-19 Rehabilitation Services Department Fund 1049226-20 Pharmacy Department Fund 1049226-21 Urology Department Fund 1049226-23 Post Graduate Centre Fund 1049226-24 Endocrinology Department Fund 1049226-27 The Salford Royal Hospitals NHS Trust (Expendable Funds) Common Investment Fund 1049226-28 Henry Richardson Research Fund 1049226-31 Reache Northwest

Page 28