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2022-03-31-accounts

NorthCare Charity

Annual report and accounts for the year ended 31[st] March 2022

Registered charity number 1049226

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

NorthCare Charity Annual Report 2021/22

Page 1

Sections Sections Page
1 Foreword 3
2 Administrative details 3
3 Professional Advisers 3 - 4
4 Trustee 5
5 Structure, governance and management 6
6 Risk Management and reserves policy 7
7 Fundraising 7 - 9
8 Objectives and strategy 9
9 Annual review 10 - 11
10 Financial review 12 - 15
NorthCare Charity Annual Accounts
Statement of Trustee’s Responsibilities
16
Independent Auditors Report to the members of the NorthCare 17 - 20
Charity
Statement of Financial Activities 21 - 23
Notes to the Accounts
 24 - 31

NorthCare Charity Annual Report 2021/22

Page 2

Report of the Trustee for the year ended 31 March 2022

Foreword

The Corporate Trustee is pleased to present the Charitable Funds Annual Report together with the audited accounts for the year ended 31 March 2022. In this financial year, with thanks to the generosity of the public and organisations that support our Charity, £1,008k of income was received. During the year, £582k 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 Northern Care Alliance NHS Foundation Trust is the sole beneficiary.

Administrative Details

The Corporate Trustee of the Charity is the Northern Care Alliance NHS Foundation Trust (formerly 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:

Professor Michael Luger - Chairman, Northern Care Alliance NHS Foundation
Trust
Professor Chris Reilly - Non-executive Member
Mrs Christine Mayer CBE - Non-executive Member
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

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 2021/22

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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 RBC Brewin Dolphin Ltd. 1 The Avenue Spinningfields Square Manchester M3 3AP

Salford Royal NHS Foundation Trust General Charitable Fund 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 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.

NorthCare Charity acquired the funds of the former Pennine Acute Hospitals Charity on the 1[st] October 2021 to mirror the 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 (2020/21: 25) further devolved into 300 Designated Funds (2020/21: 188), including 120 funds transferred from the former Pennine Acute Hospitals Charity. 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.

Fund Holders can request for funds to be held in their account if they have a specific project they are raising funds for. They are able to do this by applying to the Charitable Funds Committee for approval of the project, timeframe and funding amount.

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.

NorthCare Charity Annual Report 2021/22

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Trustee

The Northern Care Alliance NHS Foundation Trust (formerly 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 Trust Board supported, as required, by: the Chief Finance Officer of the Trust Board; Executive Directors of Finance; Care Organisation Chief Officers and/or Directors of Finance and representatives of the current investment advisors.

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

Trust Board Non-Executives and Members
of the CFC		 Jul-21 Sep-21 Nov-21 Jan-22
Mr Kieran Charleson(Chairman of CFC) Y Y Y Y
Mr Tim Crowley Y Y N N
Mrs Carmen Drinkwater Y N N Y
Professor Michael Luger(Chairman of NCA) Y Y Y Y
Mrs Christine Mayer CBE Y N Y N
Dr Chris Reilly Y Y Y Y
Dr Hamish Stedman Y Y N Y

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 and the Charitable Expenditure policy.

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

NorthCare Charity Annual Report 2021/22

Page 5

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.

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.

NorthCare Charity Annual Report 2021/22

Page 6

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.

Fundraising Highlights

In November 2020 the NorthCare Charity brand was launched and through 2021/22 the fundraising team was fully established, web-site launched and new processes were put in place to make the charity more efficient and effective. This included the implementation of a charity database, streamlined financial systems and new charity promotional materials.

With the fundraising team in place we were able to provide support and guidance to our wonderful fundraisers. While online meetings, emails and phone calls were not ideal we were amazed by the drive of people to take on virtual challenges, online quizzes and make donations in the middle of a pandemic. We were very happy when covid restrictions were lifted and we were able to meet our fundraisers and volunteers, many for the first time.

We are incredibly grateful for our volunteer collectors who were able to return to fundraising as outdoor events resumed. The Wild in Art Gratitude project, in partnership with NHS Charities Together, saw 51 uniquely-designed human sculptures go on display for ten days in St Peter's Square, Manchester. The spectacular outdoor public art commemorated and celebrated the stories of key workers during the Covid19 pandemic. Our collectors were there to receive donations and give out information about the charity.

NorthCare Charity Annual Report 2021/22

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The return of the Great Manchester Run saw 32 runners taking part for NorthCare, raising over £10,000 with an average raise per runner of over £320. Andy Edmunds was one of the runners who took part and raised funds for the major trauma service at Salford Royal. He was treated on the unit in 2020 when he sustained multiple head, spinal, shoulder, and chest injuries and broke several bones in a freak accident which happened during a lone cycle ride. The father-of-three was heading from his home in Ingham, Lincolnshire, to the Peak District when strong winds blew him off his bike and into the side of the road between Snake Pass and Glossop. Andy has made a good recovery and has more challenges planned.

Nigel, nicknamed ‘Super Nige’ by his friends, family and fellow runners at Congleton Harriers for his positive outlook on life, took on the 48.6-mile Walt Disney World Dopey Challenge and raised £5,100 for the haematology department that has cared for him over the past decade. Having battled a rare form of leukaemia twice he was reunited with the doctor who ‘saved his life’ to make his donation.

Businesses got involved by making donations of money, time and expertise. Funding worth £5,000 through gift in kind by J.Parker’s enabled the full refurbishment of the outside spaces at The Maples care home. The home cares for patients with long-term neurological conditions (brain and spinal). The garden was transformed from an unusable concreate jungle to a beautiful Japanese inspired garden which gives staff and patients a beautiful interactive space.

The fundraising team forged strong links with NHS Charities Together who provide grants predominantly towards staff and patient wellbeing. Funds received by the the charity in previous years were put towards projects across Bury, Oldham, Salford and Rochdale. These included bariatric scoters to help patients attending appointments to move across our sites, creating wellbeing spaces within staff areas and enhancing our worship areas.

NorthCare Charity Annual Report 2021/22

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Our ‘Care this Christmas’ campaign to give a gift to every patient on Christmas day grew in 2021. Pretty Little Thing donated £1,500, BAM construction filled 50 bags with goodies for our maternity wards, Brass Knuckle Riders donated children’s toys, students from Blue Coat School in Oldham raised money to create wonderful hampers for Royal Oldham Hospital and one of our youngest supporters, Freya, raised money to buy 70 selection boxes for our children’s emergency care unit.

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 the Northern Care Alliance 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 2021/22

Page 9

Annual Review

During the year the funds continued to support a wide range of activities benefiting both patients and staff. In general they are used to purchase goods and services that go beyond the scope of the NHS. For example, during the year, the charitable funds were used to purchase specialist equipment 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 £110k (2020/21: £98k) and £173k net gains (realised and unrealised) on investments (2020/21: net gains of £760k). At 31st March 2022 there were no future commitments held against the Specific Donations General Fund.

NorthCare Charity Annual Report 2021/22

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The Trustee calculates the free reserves as that part of the Charity’s unrestricted income funds that is freely available after taking into account designated funds which have been earmarked for specific purposes. The reserves currently stand at £2,655k and are calculated as follows:


Total unrestricted funds
Less designated funds
Total free reserves		 £000s
6,255
(3,600)

2,655

Designated funds are service specific and considered to be committed. The remaining General Fund is available as free reserves.

The Trustee intends that designated funds are spent within a reasonable period of receipt. The Trustee foresees a need only to maintain reserves as follows:

£000s
Provision for 1 year normal charitable expenditure 343
3 months management and administration costs 59
Total reserve requirement
 402

Available reserves exceed the requirement by £2,253k. The position is kept under review by the Committee during the year.

The Trustee continues to review the balances held in designated 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(s). In the event that the need identified for any designated funds no longer exists, those funds will be redirected to the general fund.

This policy is reviewed each year.

Future Plans

The main aim of the Charity is to help the Northern Care Alliance deliver outstanding care across Bury, Oldham, Rochdale and Salford by funding innovative equipment, education, research and wellbeing support. It aims to enhance the services and experience of patients and staff across the Northern Care Alliance, beyond the scope of the NHS.

NorthCare charity has developed a strategy that covers the period 2020/21 to 2024/25 and combines a place-based approach and a focus on specialist services. The strategy sets 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 will continue to closely review the performance of its investments and the impact of the on-going war in Ukraine and other market pressures.

NorthCare Charity Annual Report 2021/22

Page 11

Financial Review

The annual accounts for the Charity for 2021/22 include comparator financial information for the previous financial year.

The net assets of the Charitable Funds as at 31 March 2022 were £7.2 million (2020/21: £4.7million). The overall increase in net assets of £2,499k is largely attributable to the acquisition of funds from the former Pennine Acute Hospitals Charity of £1,900k (recognised as a Gift in the accounts), other income for the year of £1,008k and gains on investments of £173k, partially offset by expenditure of £582k.

Income

The Charity continues to rely on donations and investment income for its main source of funding. Donations and legacies account for 89% of the Charity’s 2021/22 income with investment income making up 11%.

Overall income for the year increased from £717k to £2,908k compared to 2020/21. £1,900k of this relates to the acquisition of the funds of the Pennine Acute Hospitals Charity. The Charity received income of £234k from legacies in 2021/22 (2020/21 £97k).

The financial year saw initial increased stability in the world’s economies following recovery from COVID-19 with instability returning in the early part of 2022 due to the war in Ukraine. Subsequently the investment income earned during the year (£110k) was slightly higher (12%) than that received in the previous year 2020/21 (£98k).

Expenditure

The Charity’s total expenditure for 2021/22 was £582k, a decrease of £1,544k on the expenditure reported in the previous financial year. The main reason for the decrease in expenditure is due to the purchase of a surgical robot for £1,600k in the previous financial year.

Medical Research

£47k was spent from the research funds during the year, a decrease from £67k in 2020/21. £35k related to the Trust’s annual management charge for administering the research funds.

Purchase of Equipment

Expenditure decreased significantly in the financial year (£19k) compared to the previous year (£1,691k), largely due to the purchase of the surgical robot £1,600k in the previous financial year.

NorthCare Charity Annual Report 2021/22

Page 12

Staff Education and Welfare

The Charity incurred expenditure of £112k on staff education and welfare in 2021/22, a significant increase from 2020/21 where expenditure was £33k. 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. The Charity purchased furniture and equipment to enhance staff areas to provide access to wellbeing spaces both inside and outside.

Patient education and welfare

The Charity incurred expenditure of £156k (2020/21 £139k) 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 £35k in the current financial year (2020/21 £35k). 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 the management charge reflecting the 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 £208k (2020/21 £152k) have been incurred this financial year, these costs represent the salaries incurred by the fundraising team as well as costs incurred for marketing and fundraising event costs.

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’.

NorthCare Charity Annual Report 2021/22

Page 13

The investments saw growth during the first part of 2021/22 reflecting the continued recovery following the impact of the Covid-19 pandemic. The later quarter of the financial year saw increased market instability caused by the war in Ukraine. The investment portfolio experienced an overall gain in value of £173k reflecting these market conditions (2020/21: £760k gain).

The investment managers were paid management fees totalling £28k during the year (2020/21: £33k).

£1,475k of investments were transferred to the charity as part of the transfer of the former Pennine Acute Hospitals Charity funds. The charity has retained the investment manager for these funds (RBC Brewin Dolphin).

Therefore the final investment portfolio was £1,620k higher than at the end of 2020/21.

Cash Held on Deposit at 31 March



At the Government Banking Service

In Lloyds TSB

Sub-Total

As part of investment portfolio

Total
 2022

£000s
796
987
1,783
192
1,975		 2021
£000s
744
2
746
48
794

Cash balances were higher at 31[st] March 2022 when compared to the previous year, largely as a result of the £283k of cash transferred from the former Pennine Acute Hospitals Charity and the lower level of expenditure made in year.

Cash held as part of the investment portfolio is held in nominee accounts with Investec Wealth and Investment Limited (£150k) and RBC Brewin Dolphin (£42k).

NorthCare Charity Annual Report 2021/22

Page 14

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

Mr Kieran Charleson

Chair of the Charitable Funds Committee / Non-Executive Director Date:14 March 2023

NorthCare Charity Annual Report 2021/22

Page 15

NorthCare Charity Accounts 2021/22

Statement of Trustee's Responsibilities

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

Date: 14 March 2023

Mr I Boyle Chief Financial Officer

Date: 14[th] March 2023

NorthCare Charity Annual Report 2021/22

Page 16

Independent auditorfs report to the members of Northcare Charity opinion We have audrted the financial stalements of Northcare Charity (the 'chariW) for the year ended 31 March 2022 which compnse the Stalement of Financial Activrties, the Balance Sheet, Ihe Statemenl of Cash ows and notes to Ihe firlancial slatemenls, including a sumtnary of signtficant accounting FK)licies. The nancial rep)rn"ng rramework that has been applied in their weparation is applicable law and Unrted Kingdom ACCOUn￿ng Standards, including FRS 102 "The Financial Reporbng Standard applicable in the UK and ReputAic of Ireland" (Unrted Kingdom Generally Accepted Accounling Practice). In our opinKJn. Ihe financ￿1 stalements. give a true and fair view of the state of the chartys affairs as at 31 March 2022 and of rts income and exFEndf(ure for the year Ihen ended" have been FKopety prepared in accordance wrth Uniled Kingdom Generalty Accepted AccountirrfJ Piactsce- and have been wepared in accordan￿ wrth the requirements of the Companies Act 2tKJ6. Basis for opinion We conducled ￿r audit in accordance ￿th Intematsonal Stan(iards ￿ Auditing {UKI (ISAS (UK)) aThJ applicable law_ Our responsibilities under those standards are further descnbed in the Auditors responsibilits.es for the audit of tne financial statements section of our reF(Srt_ We are independent of the chatty in accordance with the ethical requiremenls Ihal are relevant to our audrt of the financial statements in the UK, including the FRC'S Ethical Standard and we have fvifilled our othef elhical responsibilth.es in accor¢Jance wrth these requirements. We believe that the audit evidence we nave obtained is sufficient and appropnate to prowde a basis for our opinion. Conclusions relating to going concem In audits'ng the financial slalements, we have concluded thal the truslees. use of Ihe wing concem basis of accounting in the preparation of the financial statements is appropriate. Based on the w(￿k we have performed. we have mt iden1]r￿d any matenal uncertainlies relaling to events or con￿￿On$ that individualty or collectivety. may casl signfficanl doubt on the chantys abilty lo continue as a going concem for a pen(xJ of al least twelve M￿ths fr(Mn vthen tt)e financial statements are authonsed for issue. Our responsibililies and the reswnsibilitEs of the Ituslees wtth respect lo going C￿￿M are described in the ielevant sectsons of lh￿ report. Northcare Charity Annual Report 2021/22 Page 17

Other informalion The other lnfomia￿n compnses the inform*"on included in the Trustees repcrt other than the financial statements and our auditor's report thereon. The trustees are responsible for the other infomation. Our opinion on Ihe financial slatements does rK)t cover Ihe olher infotTnatKyn and. except to Ihe extenl otherwise expiicrtty stated in our rewrt. we do not express any fomi of assurance conclusion there(￿. In conneclion wrth our audrt of Ihe financial statements. our responsibility is to read Ihe other inforTnatKJn and. in doing so, consider whether the other Inromiat￿n is matenalty inconsistent Wtlh the financial statements or our knowledge obtained in the course of the audrt, or olherwise appear5 to be malenalty misslated_ Ir we idenify such matenal inconsistencies or apparent material misstatemenls, we are required to detemiine vthether there is a material misstatement in the financial statements or a material misslatemenl of Ihe other infom1at￿n. If. based on Ihe wcfk we have performed, we conclude thal there is a malenal misstalemenl of thls ouier inlomalion. we are required to rekK)rt ihat lacl. We have nothing lo rewrt in this regard. Opinions on other matters prescribed by the Companies Act 2006 In our opinion. based on Ihe work undertaken in Ihe course of Ihe audtl. the infomiation given in the Trustees, Report vthich includes the Directcffs, Re￿rt prepared for the purtKyses of company law, for Ihe financial year for which the Iinancial stalements are piepared is consistent wNh the financAI statements" and the Directors. Report included wtlhin the Trustees. ReF(¥t has been prepared in accordan￿ wtlh applicat￿ kgal requirements. Matters on which we are required to report by exception In lighl ol the knowledge and understanding of the chanty arn1 its environment obtaine¢J in the course of the audit. we have nol identified malenal misslatements In Ihe Directors. ReFQrt induded vathin the Truslees, RetK)rt. We have nothing lo reFQrt in resFecl of the followiThJ matters in relation to vthich the c￿PanieS Act 2006 requires us to repofl to you if. in our opinion- adequale and proper accountsng records have not been kept. or returns ajequate for our audit have rN)t t￿en received from brar)ches nol visiled by us". or the financ￿1 statements are in ￿reement wrth the accounting records and retums" or cerlain disclosures of truslees, remuneralh)n specffled by law are nol made". or we have Tr)t received all the Info￿atiC￿ and expianat'ons we require for our audrt. the truslees V￿re not ent￿e￿ to txepare the financial statements in accor(iance wth the small companies regime and lake ajvantage of the small companEs' exemption from the requirement to prepare a Strategic Report. Northcare Charity Annual Report 2021/22 Page 18

Responsibilrties of Trustees As explained more fulty in the truslees. reswnsibilth'es stalemenl set oul on page X, the trustees I￿0 are also the directors of Ihe chantable company for the purposes of company law) are responsible for Ihe tKeparatK)n of the financial stalements and T(K ￿Ing satisfied Ihat they give a Itue and fail wew, and for such inlemal control as the trustees determine is necessary to enable the preParats"(￿ of financial statements that are tree from matenal misstatement. whether due to fraud or error. In prepanng the financial statements, the truslees are restK)nsible for assessing the chantys abilty to continue as a going concem. disclosirrfJ. as applicable. matters related lo going concern and using the going concem basis of acc(yJnts"ng unless the trustees either inten¢J to I￿ul￿ate the charrty or to cease eralK)ns. or have no realists"c af(emative bul to do so. Auditor's responsibilities for the audil of the financial statements Our obiectwes are lo obtain reasonabk assurance aly)ul whelher Ihe fi'nanc￿1 stalements as a whole are tree from material misstatement. whelher due lo fraud or error. and to issue an auditors report that includes our opinion. Reasonable assurance is a high level of assurance but Is not a guaranlee Ihat an audit ccffiducted in accordance wrth ISAS {UKI wll a￿ayS detect a material misstatement vthen it exists. Misslatements can arise from fraud or error and are considered matenal if, individualty or in the aggregate. they could reasonably be expected to influence Ihe economic decisions of usef5 taken on the asis of the financial stalements. ITreguIarrt￿s. induding fraud. are instances of non-compliance wrth laws and regulatK)ns. We OesKJn kyocedures in lir)e wrth our restK)nsibilrties. outlined aly)ve, to delecl malenal misstalements in re5￿ct of irregUlant￿5, induding fraud. Based on our understanding of Ihe charity and rts actswties, we identtfie¢J that the principal nsks ol non-compliance wrth laws and regulations related to the charit.es Act 2011. the Charrties Slalemenl of Recommended Pracbce, UK tax legislat￿n, pensions legI￿a￿on. eM￿o￿TnenI regulatson and health and safety regulabon, anti-bribery, corrupiion and frau¢J, money laundenrKJ. compliance wth iMplementat￿n of government support schemes relating to COVID-19. and we considered the extent to which nc￿-Comp1lance might have a material effect ￿ the financial statements. We also considered those la￿ and regulab.ons that have a direct impact on the preparab.on ol the financial statements. such as Ihe Companies Act 2006. We evaluated the trustees. and management's incentives and opportunities for fraudulenl manipula1￿n of the financial statements (including the nsk ol override of controls) and detemined that the principal nsks were related to Fosling manual pumal enlries lo manipulale financial performance. management bias through judgements and assumpt.ons in sIgn￿lCan1 accounting ests"males, in particular in relath)n to use of resthcted funds. anij significant one-off or unusual transactions. Our aLKlit procedures ￿tre designed to restM)nd to Ihose idenltfie(l risks, including non-compliance wrth laws and regulatsons Iirregularilies} and fraud that are material to tne financial stalements. Our audit tKocedures induded but were wt limited to." Discussing wrth the Irustees and managemenl ttieir w)licies and procedures regarding c￿VIanCe wlh lay￿ and regulats'ons: Cc¥nmunicating hjentified laws and regulatsons throughout our engagement teaffl and remaining alert to any indicats.ons of non-compliance Ihr(xJgh(xJl our audrt" and Considenng the risk of acts by the chanty vthich were contrary lo applicable laws and regulatKJns. induding fra￿J. Northcare Charity Annual Report 2021/22 Page 19

Our audrt procedures in relation lo fraud included but were not limrted to". Making erquiries of the trustees and manajement on whether they had kn￿V1edge of any actual. suspected or alleged traud.. Gaining an unOerslan(Jing of the interrkil c￿tr￿S esiablLshed io mitsgale r￿kS related to frau(J.' Discussing amongst Ihe engagement team the nsks of traud. and AiJdressirKJ ihe risks of fraud through management overri¢Je ol c¢Mtrols by FertormiThJ Joumal enty testing. There are inherent limrtab'ons in the audrt procedures desuibed aL￿ve aThJ the Fyimary responsibilty for the prevents.on and detecb.on of irregularib.es including fraud rests wrth management. As with any audil there remained a risk of n0n4etect￿n of irregulanlies, as Ihese may involve collus￿n. forgery. inten￿nal offlissions. misrepresentalions or the ovetride of internal controls. A further descnption of our reswnsibilrties for the audrt of the financial statements is located on the Financial RerK>rting Council's wetisite at www.Trc.org.uklauditorsresrx)nsibilrties. This description forms part ol our audilofs report. Use of the audit report This iepKJrt is made solety lo the charty's members as a W in acccKdance vthh Chapter 3 of Part 16 of the Companies Act 2006. Our audrt work has been undertaken so that we might state to the chaws members those matters we are required lo stale lo them in an auditors report and for no olher purpose. To the fullest extent pem)itted by law. we Oo not accept or assume restK)nsibility to any)ne other than the charty and the chartys IneML￿tS as a bcxjy Tor our a￿lt vth. foi this report. or for the opinK>ns we have fomed. David Hoose (Senior Statutory Auditor) for and on behalf of Mazars LLP Chartered Accountants and Statutory Auditor 58 The Ropewalk Nottingham NG15DW Date.. 15 March 2023 Northcare Charity Annual Report 2021/22 Page 20

STATEMENT OF FINANCIAL ACTIVITIES (SoFA) for the year ended 31 March 2022

Unrestricted
Restricted
Endowment
Total
Funds
Funds
Funds
Funds
Note
£000
£000
£000
£000
Income and endowments from:
Donations and legacies
3
898
0
0
898
Income from investments
6
98
12
0
110
Donation (Acquisition of Funds from Pennine Charity)
10
1,433
467
0
1,900
Total income and endowments
2,429
479
0
2,908
Expenditure on:
Raising funds
4
(233)
(3)
0
(236)
Charitable activities
4
(323)
(23)
0
(346)
Total Expenditure
(556)
(26)
0
(582)
Net gains/ (losses) on investments
5
135
38
0
173
Net income/ (expenditure)
2,008
491
0
2,499
Net movement in funds
2,008
491
0
2,499
Reconciliation of funds
Funds brought forward
4,246
429
11
4,686
Total funds carried forward
6,255
920
11
7,186
2021/22		 2021/22 2020/21
Unrestricted
Restricted
Endowment
Total
Funds
Funds
Funds
Funds
£000
£000
£000
£000
620
0
0
620
97
1
0
98
0
0
0
0
717
1
0
718
(185)
0
0
(185)
(1,939)
(2)
0
(1,941)
(2,124)
(2)
0
(2,126)
760
0
0
760
(647)
(2)
0
(648)
(647)
(2)
0
(648)
4,893
430
11
5,334
4,246
429
11
4,686

NorthCare Charity Annual Report 2021/22

Page 21

STATEMENT OF FINANCIAL POSITION (SoFP) as at 31 March 2022

Unrestricted Restricted Endowment Total Total
Funds Funds Funds Funds Funds
2021/22 2020/21
Note £000 £000 £000 £000 £000
Fixed Assets
Investments 5,073 920 11 6,004 4,384
Total Fixed Assets 5 5,073 920 11 6,004 4,384
Current Assets
Debtors 15 0 0 15 21
Cash at bank and in hand 1,787 0 0 1,787 746
Total Current Assets 7 1,802 0 0 1,802 767
Current Liabilities
Creditors: Amounts falling due within one year 8 (621) 0 0 (621) (464)
Net Current Assets 1,181 0 0 1,181 303
Total Assets less Current Liabilities 6,254 920 11 7,186 4,687
Net Assets 6,254 920 11 7,186 4,687
The funds of the Charity
Endowment Funds 0 0 11 11 11
Restricted 0 920 0 920 429
Unrestricted 6,255 0 0 6,255 4,246
Total Funds 9 6,255 920 11 7,186 4,686

Mr I Boyle

Chief Financial Officer

Date: 14[th] March 2023

NorthCare Charity Annual Report 2021/22

Page 22

STATEMENT OF CASH FLOW to 31 March 2022

Cash flow from operating activites
Operational surplus/deficit
Dividends, interest and rents from investments
Transfer of Pennine Investments
(Increase)/Decrease in Debtors
Increase/(Decrease) in Creditors
Net cash generated from operating activities
Dividends, interest and rents from investments
Proceeds from sale of investments
(Increase)/Decrease in stockbroker account
Purchase of investments
Gain on the sale of investments
Net cash provided by investment activities
Change in Cash Equiavlents during the reporting period
Cash and cash equivalents at the start of the period
Cash and cash equivalents at the end of the period		 31st March
31st March
2022
2021
£000
£000
2,326
(1,408)
(110)
(98)
(1,475)
0
6
79
157
(238)
904
(1,663)
110
98
654
1,433
(102)
212
(902)
(1,214)
376
96
137
623
1,041
(1,040)
746
1,786
1,787
746

NorthCare Charity Annual Report 2021/22

Page 23

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 Note 9. 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.

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

NorthCare Charity Annual Report 2021/22

Page 24

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.

----- Start of picture text -----
m. Pooling scheme
----- End of picture text -----

Key sources of estimation and uncertainty Valuation of fixed asset investments

As at 31 March 2022 Investec Wealth Management and RBC Brewin Dolphin provided a valuation of the Charity's investment portfolios that have been reported in these accounts. These valuations are 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.

NorthCare Charity Annual Report 2021/22

Page 25

Note 2 – Related Party Transactions

The Northern Care Alliance 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.

The representatives of the Corporate Trustee (Board members) are remunerated by Northern Care Alliance 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.

The Charity makes use of the Northern Care Alliance NHS Foundation Trust finance and procurement systems. The Trust processes payments for invoices through its bank as part of the procurement system.

The total amount owed by the Charity to the Trust for invoices and recharged staff is given in note 8 with the balance settled between the organisations on a regular basis.

The Charity has not purchased trustee indemnity insurance.

Note 3 – Voluntary Income

Donations from individuals
Corporate donations
Legacies		 Unrestricted
Restricted
Total
Total
Funds
Funds
2021/22
2020/21
£000
£000
£000
£000
627
0
627
158
37
0
37
365
234
0
234
97
898
0
898
620

Note 4 – Analysis of Expenditure

Note 4 – Analysis of Expenditure
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 2022 31 March 2021
Direct
resources
expended
Share of
administration
costs
Total
resources
expended
Total
resources
expended
£000s
£000s
£000s
£000s
46
1
47
67
17
2
19
1,691
98
14
112
33
137
19
156
139
0
12
12
8
298
48
346
1,939
28
0
28
33
208
0
208
115
0
0
0
**37 **
534
48
582
2,124

NorthCare Charity Annual Report 2021/22

Page 26

Note 5 – Analysis of Fixed Asset Investments

Movement in fixed asset investments
Market value brought forward
Transfer of Investments from Pennine
Additions at cost
Disposals at book cost
Net gain/(loss) on revaluation
Increase/(Reduction) in cash held at Investec and Brewin
Market value at 31st March
Historic cost at 31 March
Fixed asset investments
UK Listed Investments (Including Fixed Interest & Property)
Outside of UK investments listed on the stock exchange
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
Total
2021/22
2020/21
£000
£000
4,382
4,149
1,475
0
902
1,214
(654)
(1,433)
(203)
664
102
(212)
6,004
4,382
5,102
3,169
Total
Total
2021/22
2020/21
£000
£000
3,365
2,303
2,447
2,031
5,812
4,334
192
48
6,004
4,382
Total
Total
2021/22
2020/21
£000
£000
(203)
664
376
96
173
760

NorthCare Charity Annual Report 2021/22

Page 27

Note 6 – Analysis of Income from Investments

Income received from quoted investments
Interest on cash held on deposit and at bank
Total		 Total
Total
2021/22
2020/21
£000
£000
110
97
0
0
110
97

Note 7 – Analysis of Current Assets

Debtors under 1 year
Other debtors
Total
Cash at bank and in hand
Lloyds TSB - Current Account
Government Banking Service
Petty Cash
Total		 Total
Total
2021/22
2020/21
£000
£000
15
21
15
21
Total
Total
2021/22
2020/21
£000
£000
987
2
796
744
3
0
1787
746

Note 8 – Analysis of Current Liabilities

Creditors under 1 year
Northern Care Alliance Foundation Trust
Accruals
Other creditors - Provisions for Commitments
Total*		 Total
Total
2021/22
2020/21
£000
£000
592
456
29
8
0
0
621
464

NorthCare Charity Annual Report 2021/22

Page 28

Note 9 – Analysis of Charitable Funds – Unrestricted Funds

The Charity has 300 unrestricted funds including 116 from the former Pennine Acute Charity. Individual funds with material balances (greater than £30K) are listed below.

Unrestricted Funds
Specfic Donations General
Hope General
Pennine General Fund
Renal Services Fund
Holding Account - Unrestricted
Heart Care
Neurosurgery
Pennine Covid-19 Donations
Trauma & Orthopaedics
Haematology Research Fund
Umbrella Charity
Neuro Theatre
Haematology Department
Breast Fund
Neurology
Haematology Unit (Ward F1
Icu Patients
Urology Training & Equip
Reache North West
Leukaemia Fund
Anaesthetics Department Fund
Movement Disorder Fund
Intestinal Failure Department
Diabetics Dept Nurses
Stroke Unit Fund Provhosp
Dermatology Department
Rochdale Education Centre
Emergency Medicine Fund
Oldham Community Adults
Oldham Community Children
Special Care Baby Unit Fund
Neuro Enterology
Neuro Research Fund
Other		 Opening
ansfer fro
Incoming
Resources
Gains and
Closing
balance
Pennine
resources
expended
losses
Balance
£000
£000
£000
£000
£000
£000
1,627
0
63
(13)
93
1,770
450
0
618
(41)
0
1,027
0
236
1
2
0
239
229
0
14
(8)
0
235
0
135
10
(17)
42
170
145
0
17
(14)
0
149
129
0
3
(2)
0
130
0
134
0
(17)
0
117
109
0
4
(1)
0
113
0
110
0
(0)
0
109
105
0
0
(1)
0
105
2
0
101
(0)
0
102
77
0
10
(1)
0
87
81
0
0
(1)
0
81
70
0
9
(1)
0
78
0
102
3
(31)
0
74
67
0
0
(0)
0
67
0
66
0
(0)
0
65
63
0
6
(4)
0
65
0
64
0
(0)
0
64
62
0
0
(2)
0
60
60
0
0
(0)
0
60
57
0
3
(3)
0
57
55
0
0
(0)
0
54
0
24
25
(0)
0
50
48
0
0
(0)
0
48
0
45
0
(0)
0
45
38
0
6
(2)
0
42
38
0
0
(0)
0
38
32
0
1
(0)
0
32
0
31
2
(0)
0
32
32
0
0
(0)
0
31
31
0
0
(0)
0
31
641
487
74
(373)
0
829
4,246
1,433
971
(531)
135
6,255

NorthCare Charity Annual Report 2021/22

Page 29

Note 9 – Analysis of Charitable Funds – Restricted Funds

Restricted funds Opening
Transfer from
Incoming
Resources
Gains and
Closing
balance
Pennine
resources
expended
losses
balance
£000
£000
£000
£000
£000
£000
Neurosurgery
Restricted Legacies
John Mayo Legacy
Holding Account - Restricted
Prostate Scanner Appeal E
Henry Richardson
Endowned Funds Accumulated
Critical Care J Chadwick
Hospital Palliative Care		 405
0
5
(7)
24
427
0
156
1
(1)
5
161
0
165
1
(15)
5
156
0
110
1
(0)
3
114
0
31
0
(0)
1
32
20
0
0
(0)
1
21
4
0
0
0
0
4
0
4
0
(0)
0
4
0
1
0
(0)
0
1
429
467
9
(23)
38
920

Note 9 – Analysis of Charitable Funds – Permanent Endowment 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.

Post Grad Centre
Cardio Respiratiry
Elderly Care
Immunology
Haematology
John Harvey Green Fund		 Capital
Endowed
Capital
Endowed
2021/22
2020/21
£000
£000
1.5
1.5
2.0
2.0
2.0
2.0
1.5
1.5
1.5
1.5
2.5
2.5
11.0
11.0

NorthCare Charity Annual Report 2021/22

Page 30

Note 10 – Acquisition of The Pennine Acute Hospitals Charity Funds

On the 1st October 2021 following the dissolution of the Pennine Acute Hospitals NHS Trust, the remaining funds of the The Pennine Acute Hospitals Charity were acquired by the NorthCare Charity

The composition of the funds, assets and liabilities acquired are shown in the below table.

Fixed Assets
Investments
Total Fixed Assets
Current Assets
Debtors
Cash at bank and in hand
Total Current Assets
Current Laibilities
Creditors falling due within one year
Net Current Assets
Total Net Assets
Funds Acquired
Restricted
Unrestricted		 Unrestricted
Restricted
Total
Funds
Funds
Funds
£000s
£000s
£000s
1,110
365
1,475
1,110
365
1,475
196
65
261
215
71
286
411
136
547
(92)
(30)
(122)
319
106
425
1,429
471
1,900
467
467
1,433
1,433
1,433
467
1,900

NorthCare Charity Annual Report 2021/22

Page 31