ANNUAL REPORT AND ACCOUNTS 2021‐22 **Frimley Health Charity** Reg. No. 1049600 Trustee’s Annual Report for Frimley Health Charity for the year ended 31 March 2022 ## **Contents** ## **SECTION ONE** Independent Auditor Report **SECTION TWO** Annual Report and Accounts ||Contents .......................................................................................................................................... 1| |---|---| ||Independent Auditor Report .......................................................................................................... 2| |1|Foreword ........................................................................................................................................ 9| |2|Structure, Governance and Management .................................................................................... 10| |3|Risk Management ......................................................................................................................... 13| |4|Objectives and Strategy ................................................................................................................ 13| |5|Review of Finances, Achievements and Performance .................................................................. 14| |6|Investment Policy .......................................................................................................................... 16| |7|Reserves Policy .............................................................................................................................. 17| |8|Future Plans .................................................................................................................................. 17| ||Statement of Financial Activities for the year ended 31 March 2022 .......................................... 19| ||Balance Sheet as at 31 March 2022 .............................................................................................. 20| ||Statement of Cash Flows .............................................................................................................. 21| ||Notes to the Accounts .................................................................................................................. 22| Page **1** of **29** Trustee’s Annual Report for Frimley Health Charity for the year ended 31 March 2022 ## SECTION ONE ## **Independent Auditor Report** Page **2** of **29** Trustee’s Annual Report for Frimley Health Charity for the year ended 31 March 2022 ## **Independent auditor’s report to the Trustee of Frimley Health Charity** ## **Opinion** We have audited the financial statements of Frimley Health Charity (“the charity”) for the year ended 31 March 2022 which comprise the Statement of Financial Activities, Balance Sheet, Statement of Cash Flows, and related notes, including the accounting policies in note 1. In our opinion the financial statements: - give a true and fair view of the state of the charity’s affairs as at 31 March 2022 and of its incoming resources and application of resources for the year then ended; - have been properly prepared in accordance with UK accounting standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland; and - have been prepared in accordance with the requirements of the Charities Act 2011. ## **Basis for opinion** We have been appointed as auditor under section 149 of the Charities Act 2011 (or its predecessors) and report in accordance with regulations made under section 154 of that Act. We conducted our audit in accordance with International Standards on Auditing (UK) (“ISAs (UK)”) and applicable law. Our responsibilities are described below. We have fulfilled our ethical responsibilities under, and are independent of the charity in accordance with, UK ethical requirements including the FRC Ethical Standard. We believe that the audit evidence we have obtained is a sufficient and appropriate basis for our opinion. ## **Going concern** The trustee has prepared the financial statements on the going concern basis as they do not intend to liquidate the charity or to cease its operations, and as they have concluded that the charity’s financial position means that this is realistic. They have also concluded that there are no material uncertainties that could have cast significant doubt over its ability to continue as a going concern for at least a year from the date of approval of the financial statements (“the going concern period”). In our evaluation of the trustee’s conclusions, we considered the inherent risks to the charity’s business model and analysed how those risks might affect the charity’s financial resources or ability to continue operations over the going concern period. Our conclusions based on this work: - we consider that the trustee’s use of the going concern basis of accounting in the preparation of the financial statements is appropriate; - we have not identified, and concur with the trustee’s assessment that there is not, a material uncertainty related to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for the going concern period. Page **3** of **29** Trustee’s Annual Report for Frimley Health Charity for the year ended 31 March 2022 However, as we cannot predict all future events or conditions and as subsequent events may result in outcomes that are inconsistent with judgements that were reasonable at the time they were made, the above conclusions are not a guarantee that the charity will continue in operation. ## **Fraud and breaches of laws and regulations – ability to detect** ## _**Identifying and responding to risks of material misstatement due to fraud**_ To identify risks of material misstatement due to fraud (“fraud risks”) we assessed events or conditions that could indicate an incentive or pressure to commit fraud or provide an opportunity to commit fraud. Our risk assessment procedures included: - Enquiring of trustee, other management and inspection of policy documentation as to the Charity’s high‐level policies and procedures to prevent and detect fraud, as well as whether they have knowledge of any actual, suspected or alleged fraud. - Reading Charitable Funds Committee minutes. - Using analytical procedures to identify any unusual or unexpected relationships. We communicated identified fraud risks throughout the audit team and remained alert to any indications of fraud throughout the audit. As required by auditing standards, we perform procedures to address the risk of management override of controls, in particular the risk that management may be in a position to make inappropriate accounting entries. On this audit we do not believe there is a fraud risk related to revenue recognition because there is minimal complexity in revenue recognition or incentives for management to seek to manipulate revenue as commitments are not made in advance of funding being available. We did not identify any additional fraud risks. We performed procedures including identifying journal entries to test based on risk criteria and comparing the identified entries to supporting documentation. These included those posted to unusual accounts, unusual cash account combinations, last 5 journals posted in the year and material post year end journals. ## _**Identifying and responding to risks of material misstatement related to compliance with laws and regulations**_ We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience, through discussion with the trustee and other management (as required by auditing standards), and discussed with the trustee and other management the policies and procedures regarding compliance with laws and regulations. We communicated identified laws and regulations throughout our team and remained alert to any indications of non‐compliance throughout the audit. Page **4** of **29** Trustee’s Annual Report for Frimley Health Charity for the year ended 31 March 2022 The potential effect of these laws and regulations on the financial statements varies considerably. The Charity is subject to laws and regulations that directly affect the financial statements including financial reporting legislation (including related charities legislation), and we assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items. Whilst the Charity is subject to many other laws and regulations, we did not identify any others where the consequences of non‐compliance alone could have a material effect on amounts or disclosures in the financial statements. Auditing standards limit the required audit procedures to identify non‐compliance with these laws and regulations to enquiry of the trustee and other management and inspection of regulatory and legal correspondence, if any. Therefore if a breach of operational regulations is not disclosed to us or evident from relevant correspondence, an audit will not detect that breach. ## _**Context of the ability of the audit to detect fraud or breaches of law or regulation**_ Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non‐compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non‐detection of fraud, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. Our audit procedures are designed to detect material misstatement. We are not responsible for preventing non‐compliance or fraud and cannot be expected to detect non‐compliance with all laws and regulations. ## **Other information** The trustee is responsible for the other information, which comprises the Trustee’s Annual Report. Our opinion on the financial statements does not cover the other information and, accordingly, we do not express an audit opinion or, except as explicitly stated below, any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether, based on our financial statements audit work, the information therein is materially misstated or inconsistent with the financial statements or our audit knowledge. We are required to report to you if: - based solely on that work, we have identified material misstatements in the other information; or Page **5** of **29** Trustee’s Annual Report for Frimley Health Charity for the year ended 31 March 2022 - in our opinion, the information given in the Trustee’s Annual Report is inconsistent in any material respect with the financial statements. We have nothing to report in these respects. ## **Matters on which we are required to report by exception** Under the Charities Act 2011 we are required to report to you if, in our opinion: - the charity has not kept sufficient accounting records; or - the financial statements are not in agreement with the accounting records; or - we have not received all the information and explanations we require for our audit. We have nothing to report in these respects. ## **Trustee’s responsibilities** As explained more fully in their statement set out on page 11, the trustee is responsible for: the preparation of financial statements which give a true and fair view; such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error; assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern; and using the going concern basis of accounting unless they either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so. ## **Auditor’s responsibilities** Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue our opinion in an auditor’s report. Reasonable assurance is a high level of assurance, but does not guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements. A fuller description of our responsibilities is provided on the FRC’s website at www.frc.org.uk/auditorsresponsibilities. ## **The purpose of our audit work and to whom we owe our responsibilities** Page **6** of **29** Trustee’s Annual Report for Frimley Health Charity for the year ended 31 March 2022 This report is made solely to the charity’s trustee as a body, in accordance with section 149 of the Charities Act 2011 (or its predecessors) and regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the charity’s trustee those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and its trustee, as a body, for our audit work, for this report, or for the opinions we have formed. ## **Joanne Lees** ## **for and on behalf of KPMG LLP, Statutory Auditor** ## _Chartered Accountants_ _KPMG LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006_ 15 Canada Square London, E14 5GL 25 January 2023 Page **7** of **29** Trustee’s Annual Report for Frimley Health Charity for the year ended 31 March 2022 ## SECTION TWO ## Annual Report and Accounts Page **8** of **29** Trustee’s Annual Report for Frimley Health Charity for the year ended 31 March 2022 ## **1 Foreword** The Corporate Trustee presents the Frimley Health Charity (“The Charity”) Annual Report together with the audited financial statements for the year ended 31 March 2022. The Charity's Annual Report and Accounts for the year ended 31 March 2022 have been prepared by the Corporate Trustee in accordance with the Charities Act 2011, the Charities Statement of Recommended Practice (FRS 102), and FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland". The Charity’s Annual Report and Accounts include all of the separately established funds for which the Frimley Health NHS Foundation Trust is the sole beneficiary. The Charity is registered with the Charity Commission (registration number 1049600) in accordance with the Charities Act 2011. ## **1.1 Reference and Administrative Details** The Charity was formed by Trust Deed (Declaration of Trust) on 26 September 1995 and entered on the Central Register of Charities on 4 October 1995. The registration was as an Umbrella Charity; Registered Charity Number 1049600. The Charity is currently known as Frimley Health Charity. Supplemental deed dated 23 May 2005 changed the name to Frimley Park Hospital NHS Foundation Trust Charitable Fund, further amended by a supplemental deed dated 4 January 2014 to Frimley Park Hospital Charity. This was further amended in March 2015 to Frimley Health Charity as approved by the Trustee following the acquisition of Heatherwood and Wexham Park Hospitals NHS Foundation Trust by Frimley Park Hospital NHS Foundation Trust. Charitable funds received by the Charity are accepted, held and administered as funds and property 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, these funds are held on trust by the Corporate body. ## **1.2 Principal Office** Frimley Health NHS Foundation Trust Frimley Park Hospital Portsmouth Road Frimley Surrey GU16 7UJ ## **1.3 Bankers** Lloyds Bank plc Lloyds Bank plc Barclays Bank PLC 19/23 Obelisk Way 24 High Street London Corporate Banking Camberley Slough 1 Churchill Place Surrey GU15 3SE Berkshire SL1 1EJ London E14 5HP Page **9** of **29** Trustee’s Annual Report for Frimley Health Charity for the year ended 31 March 2022 ## **1.4 Independent Auditor** KPMG LLP 15 Canada Square Canary Wharf London E14 5GL ## **1.5 Solicitor** Capsticks 1 St George’s Road Wimbledon London SW19 4DR ## **2 Structure, Governance and Management** ## **2.1 Trustee** The Frimley Health NHS Foundation Trust is the Corporate Trustee of the Charity governed by the law applicable to Trusts, principally the Trustee Act 2000 and the Charities Act 2011. Acting as Corporate Trustee, the Trust’s Board of Directors is responsible for the overall management of the Charity. The Chair and Non‐Executive members of the Trust Board are appointed by the Trust’s Council of Governors. The Chief Executive is appointed by the Chair and Non‐Executive Directors (subject to ratification by the Council of Governors). Executive members of the Trust Board are subject to recruitment by the Chairman, Non‐Executive Directors and Chief Executive. Members of the Trust Board are not individual Trustees under Charity Law, but act as agents on behalf of the Corporate Trustee. Duties are discharged through dedicated Trustee meetings. For operational purposes the Trustees, during the financial year 2021/22, were deemed to be the Chairman, Non‐Executive Directors and Executive Directors of Frimley Health NHS Foundation Trust. The Director of Finance acted as the principal officer overseeing the day‐ to‐day financial management and accounting for the Charity during the year. The members of the Board of the Corporate Trustee who served during the financial year and up to the date of signing the financial statements were as follows: ## **Non‐Executive Directors:** Pradip Patel – Chairman Rob Pike Michael O’Donovan Bryan Ingleby Dawn Kenson John Weaver Page **10** of **29** Trustee’s Annual Report for Frimley Health Charity for the year ended 31 March 2022 ## Michael Baxter Pooja Dewan (appointed 1 May 2021) – Non Voting Debbie Raven (appointed 1 May 2021) – Non Voting ## **Executive Directors:** Neil Dardis Chief Executive Timothy Ho Medical Director Nigel Foster Director of Finance Dan Bradbury Chief Operating Officer Lorna Wilkinson Director of Nursing and Midwifery Caroline Hutton Director of Transformation, Innovation and Digital (appointed 30 September 2021) Matt Joint Director of People (appointed 28 June 2021) Eleanor Shingleton‐Smith Acting Director of Human Resources (appointed 1 November 2021) John Seymour Interim Managing Director from December 2021 until April 2022) Induction and training are organised for new Directors of the Corporate Trustee on a case by case basis. This includes a series of one‐to‐one meetings with the Chairman, the executive directors and senior managers. ## **2.2 Statement of Trustee’s Responsibilities** Under [the trust deed [and rules] of the charity and][1] charity law, the trustees are responsible for preparing a Trustees’ Annual Report and the financial statements in accordance with applicable law and regulations. The trustees are required to prepare the financial statements in accordance with UK Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland. The financial statements are required by law to give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources for that period. In preparing these financial statements, generally accepted accounting practice entails that the trustees: - select suitable accounting policies and then apply them consistently; - make judgements and estimates that are reasonable and prudent; - state whether applicable UK Accounting Standards and the Statement of Recommended Practice have been followed, subject to any material departures disclosed and explained in the financial statements; - state whether the financial statements comply with the trust deed [and rules], subject to any material departures disclosed and explained in the financial statements; - assess the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern; and Page **11** of **29** Trustee’s Annual Report for Frimley Health Charity for the year ended 31 March 2022 - use the going concern basis of accounting unless they either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so. The trustees are required to act in accordance with the trust deed [and the rules] of the charity, within the framework of trust law. They are responsible for keeping accounting records which are sufficient to show and explain the charity’s transactions and disclose at any time, with reasonable accuracy, the financial position of the charity at that time, and to enable the trustees to ensure that, where any statements of accounts are prepared by them under section 132(1) of the Charities Act 2011, those statements of accounts comply with the requirements of regulations under that provision. They are responsible for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error, and have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the charity and to prevent and detect fraud and other irregularities. [The trustees are responsible for the maintenance and integrity of the financial and other information included on the charity’s website. Legislation in the UK governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.][2] ## **2.3 Charitable Funds Committee** The Charitable Funds Committee was established by the Trustee to oversee the day‐to‐day management of the Charity in accordance with the duties of the Trustee, and to report regularly to the Trustee on the discharge of its responsibilities. The Charitable Funds Committee is chaired by a Non‐Executive Director of the Trust and includes Executive and Directors as well as individuals who are not members of the Board of Directors. The members who served during the financial year and up to the date of signing the financial statements were as follows: ## **Members:** John Weaver Non‐Executive Director & Committee Chair Carol Deans Director of Communication and Engagement Edward John Director of Operational Finance **Attendees:** Lorna Wilkinson Chief of Nursing & Midwifery Debbie Raven Non‐Executive Director Judith Gudgeon Consultant Jeetesh Bhardwa Consultant Philippa Hooton Head of Nursing Medicine & Elderly Care Alison Stevens Corporate Head of Nursing FPH Joanna Hawks Matron, Wexham ED Stuart Bendermacher Matron Emergency Assessments Ann McDonald Associate Director of Finance Aman Jhalli Head of Technical Accounts Page **12** of **29** Trustee’s Annual Report for Frimley Health Charity for the year ended 31 March 2022 Andrew House Charity Director The accounting records and the day‐to‐day administration of the funds are dealt with by the Finance Department located at Frimley Health NHS Foundation Trust, Heatherwood Hospital, London Road, Ascot, Berkshire SL5 8AA. ## **3 Risk Management** The major risks to which the Charity is exposed have been identified and assessed, with systems in place that seek to mitigate those risks. Although the current economic climate is relatively stable, the prospect of future economic downturns presents limited risk because in general the Charity does not enter into long‐term spending commitments that are not covered by its income and tailors its expenditure to the funds available. Expenditure is closely monitored; no fund manager is able to expend funds without the request first being checked by the Finance Department, which ensures the funds are available. The Charitable Funds Committee regularly reviews the movement on the different funds to satisfy itself that funds are being spent in accordance with the purpose for which they were raised and not retained to no benefit of the Charity, with significant fund holders asked to provide spending plans to support high balances. There are no material uncertainties about the Charities ability to continue. The Charity is a public benefit entity. ## **4 Objectives and Strategy** The Charity’s overarching objective is expressed as follows in the Trust Deed: “The Trustee shall hold the Trust Fund upon trust to apply the income, and at its discretion, so far as may be permissible, the capital, for any charitable purposes relating to the NHS (hereinafter referred to as “the Objects”)”. The Trustee has had regards to Charity Commission guidance on public benefit in section 17 of the Charities Act 2011 as well as the activities undertaken to further a charity’s purposes for the benefit of the public as demonstrated in section 5 of the Annual Report. The Charitable Funds Committee has defined the purpose of the Frimley Health Charity as follows: _The purpose of the Frimley Health Charity is to raise and receive money and other support from patients, staff and members of Frimley Health NHS Foundation Trust (“The Hospitals”), as well as from the wider community. The Trustee of the Charity is responsible for ensuring the funds raised are spent in accordance with the wishes of the donors if specified, Charity Commission guidelines, and all relevant legal requirements._ _The overall aim of the Corporate Trustee is to enhance the capacity of the Hospitals, its staff, and volunteers to provide the best possible care for its patients, over and above the standards required by the NHS._ Page **13** of **29** Trustee’s Annual Report for Frimley Health Charity for the year ended 31 March 2022 **The Charitable Funds Committee continued to support the Trust’s main strategic appeal in 2021‐22:** - The COVID Appeal was launched in March 2020 and continued throughout 2021/22. The aim was to raise funds to support staff and patients who were - struggling to cope in extremely difficult situations. Almost £1.1m was raised in this time, especially in 2020/21 and in 2021/22 the Charity spent almost £0.8m on COVID related projects. - The Stroke Appeal funding was secured and building work started in 2021/22. This was paused in 2022 but will be completed by the end of 2022 bringing superb new facilities for Stroke patients. - The Dementia Appeal was relaunched at the start of 2022 and new branding was launched at the start of 2022/23 and has been well received. Income for the Appeal is already over £200,000. ## **5 Review of Finances, Achievements and Performance** The net assets of the Charity as at 31 March 2022 were £4,835,000 compared with £5,433,000 as at 31 March 2021, an overall decrease of £598,000. The total income received was £1,229,000 which represents a decrease of £1,131,000 compared with the previous year (20/21 £2,360,000) and this was largely due to the impact of the pandemic which has continued to restrict events, lottery canvassing, recruitment, and visitors to the hospital. All of this has caused a slump in fundraising, donations and event income. Total expenditure was £1,827,000, which was an increase of £526,000 on the previous year (2020/21 £1,301,000). Spend on equipment purchases rose to £215,000 (2020/21 £170,000) an increase of £45,000 on the previous year. £223,000 was spent on patient education and welfare (2020/21 £111,000) which was an increase of £112,000 from the previous year. Spending on staff education and welfare decreased by £108,000 to £623,000 (2020/21 £731,000). Total expenditure includes governance costs which are shown in _**note 7**_ having been apportioned across the approved expenditure headings. The Charity Lottery scheme (which is a community lottery), launched in 2018‐19 saw progress throughout 2021‐22 and reported a ‘surplus’ of £102,000 if grants paid for charitable projects and staff salaries are excluded. This lottery has significant income streams projected for future years which will increase general funds to use on the highest priority projects. ## **Fund Raising** In 2021/22 the impact of the pandemic has continued to restrict events, lottery canvassing, recruitment, and visitors to the hospital. All of this has caused a slump in fundraising, Page **14** of **29** Trustee’s Annual Report for Frimley Health Charity for the year ended 31 March 2022 donations and event income. This has been felt across the third sector with many charities facing extremely difficult times. In 2020/21 we managed to secure some significant funding which was due to the huge groundswell of support for the NHS, but in 2021/22 with ongoing restrictions our income has been severely hit. With the emergence of the Omicron variant we had further restrictions in the early part of 2022. Over two years since COVID‐19 was first reported there is the glimmer of hope that restrictions could be lifted, but also concerns that further variants could bring a return of those restrictions. Masks are still worn in hospitals and illness due to COVID is placing enormous strain on the NHS. Not only was income impacted but also COVID‐19 has caused the ‘Great Resignation’ as many people took time out to evaluate their lives. Recruitment in 2021/22 has been tough and delayed posts being filled until 2022. We also had two members of the team leave (September 2021) and again their replacements will only be made in 2022 due to the difficulties with recruitment. These difficulties with recruitment have impacted our income and in 2022/23 as new members of the team are secured so we are already seeing the impact on income. We have successfully spent almost £0.8m on the staff welfare projects and the regional Frimley Health and Care ICS project over the past 12‐15 months. The impact has been clearly felt across the Trust with many clinical teams thrilled with the transformation of their areas for relaxation when not on duty. Patients are surrounded by a peaceful calming environment and this combined with great clinical care is impacting recovery and wellbeing. The community lottery continues to be very popular and income for 2021/22 was £402,000. We have now over 10,000 tickets/week. If income remains static then we could expect £500‐ 600,000 income but with continued growth we would expect this to be £600‐700,000 in 2022/23. Also we have just recruited our own canvassers which has been planned for over 2 ½ years. This will dramatically improve our net position for the lottery as costs for recruitment of players will be reduced significantly. Income for 2021/22 was £1.2m which as mentioned above was a huge decrease from the previous year but we expect a turnaround in the first quarter of 2022/23. This has been down to some significant legacy pledges and also the growth in lottery income. With further fundraising through the 2022/23 year means that we are expecting income to head back towards the target of £2.4m. ## **Income** The Charity relies on donations, grants, and legacies as its main sources of income, this was £625,000 (2020/21 £1,607,000). This category represented just over half of total income at 51% but was down on the previous year (2020/21 68%). This was mainly due to inflated numbers due to public generosity during Covid in 2020/21. The Charity received £402,000 in respect of income from the community lottery during 2021/22 (£408,000 in 2020/21). ## **Expenditure** Expenditure included staff education and welfare of £623,000 (2020/21 ‐ £731,000) this enabled nursing, medical and support staff to develop their skills by attending courses Page **15** of **29** Trustee’s Annual Report for Frimley Health Charity for the year ended 31 March 2022 where innovation and new research ideas can be shared. Such opportunities are over and above the regular Trust programmes of staff development and are made possible through donations received in wards and departments from patients and relatives as a thank you. These funds are also used to support departmental team building events. During the year the Charity also continued to support a range of other charitable and health related activities benefiting patients both directly and indirectly. The purchases were varied and were of a kind that would not normally be a priority for NHS funding and included the following items in excess of £10,000: - Vast refurbishment to all Trust staffrooms funded by - NHS Charities Together and community donations £139,798 - Contribution to ICU refurbishment works £21,274  Medical equipment in Neonates £14,802  Comfortable furniture for parents waiting with children in Neonates £14,664  Mental health training for Trust managers funded from NHS Charities  Together and the community as part of our Covid response £14,243  The lottery fund supported physio by way of a treadmill purchase £13,691  Funding for staff for music therapy for our Dementia patients £12,941  Medical equipment for Fleet Hospital £10,116  The Trust hosted funds from NHS Charities Together in support of the  Frimley Health & Care ICS and disbursed to worthy causes £213,150 The Charity incurred £285,000 in respect of expenses to support the continued growth of the community lottery as well as supporting other charitable projects to the sum of £82,000 during 2021/22 as opposed to £179,000 in 2020/21. The increase was on the previous year was reflective of recovery from Government restrictions put on by Covid‐19. ## **Going Concern** The Trustee has reasonable expectation that Frimley Health Charity has adequate resources to continue in operational existence for the foreseeable future. For this reason, there are no material uncertainties about the Charity’s ability to continue as a going concern and the accounts have been prepared on this basis. The Trustees have also considered the implications of COVID‐19 on cash flow forecasts and consider that as a result of its operating model explained within this Annual Report, even if no further funding is received in the 12 month period, the Charity has sufficient cash reserves to pay all committed costs. ## **6 Investment Policy** The Corporate Trustee has determined the investment policy as being, in so far as reasonable, to maintain and enhance the real value of the Charity’s assets over the long term by an investment portfolio of low‐risk assets. Page **16** of **29** Trustee’s Annual Report for Frimley Health Charity for the year ended 31 March 2022 ## **7 Reserves Policy** The Trustee’s policy is that funds should be spent when suitable applications arise, rather than that they should be retained indefinitely with the intention of generating investment income. This reflects the fact that the Charity does not generally enter into long‐term commitments. The Trust does however have a level of operating expenditure of £406,000 (£374,000 for 2020/21) and the Trustees intend that an amount equal to six months’ worth of expenditure £203,000 (£187,000 for 2020/21) be held in reserve to fund forward commitments. The Charity also has funds which are designed to accumulate funds for a specific appeal and are therefore held until the appeal target is met. These funds are reviewed each year, but for 2021/22 the following are considered as reserved at 31st March: ||F028|Stroke Appeal|£612,185| |---|---|---|---| ||F030|Frimley Breast Care Appeal|£184,678| ||F050|Dementia Campaign|£85,621| ||F009|NHS Charities Together ICS|£66,219| ||F551|Breast Cancer Appeal|£46,515| ||F035|Paediatric Critical Care Appeal|£30,069| ||F008|NHS Charities Together|£18,130| The policy is reviewed on an annual basis. ## **8 Future Plans** The Stroke Appeal is complete and building on the extension to the Stroke Unit is expected to be completed by the end of 2022. This will make a significant difference to the lives of Stroke patients. We have now relaunched the Dementia Appeal and as of July 2022 over £200,000 has been raised towards a target of £850,000. Our vision is to transform dementia care at Frimley Health in our hospitals and the community. We want to give dementia patients the best possible care and not be overly anxious when they are admitted to hospital. They will be met by staff from porters to nurses and doctors, who care for them and understand their needs and work hard to put dementia patients at ease. The environment will be transformed and the approach to patients will be individually tailored and informed. As the Lottery has grown (we now have 10,000 tickets/week in the lottery) we are making significant changes to its management. Firstly, we have recruited our own canvassers who will start work in August 2022. This will improve significantly the ROI for this income stream. Secondly, we will be moving from a lottery to a raffle. This will improve chances of winning the top prizes. With additional staff we have been able to start developing new income. We are planning new legacy events for 2022/23 and have already started to distribute bookmarks across the Page **17** of **29** Trustee’s Annual Report for Frimley Health Charity for the year ended 31 March 2022 Trust with basic information about legacies and promoting this way of giving. We also expect our event income to top £200,000 in 2022/23 with the recruitment of a new Events Manager. We also expect Major Donor income to rise with the appointment of a new Philanthropy Manager. The future for the charity is looking very positive at present with rising income after the difficulties of the pandemic, and a fully engaged, enthusiastic and experienced team. ## **A Big Thank You** On behalf of staff and patients who have benefitted from improved services due to the receipt of donations and legacies, the Corporate Trustee would like to thank all of those who have made charitable donations during the year. Approved on behalf of the Corporate Trustee Pradip Patel Chairman Date: 13[th] January 2023 Page **18** of **29** ## Trustee’s Annual Report for Frimley Health Charity for the year ended 31 March 2022 ## **Statement of Financial Activities for the year ended 31 March 2022** |**Unrestricted**
**Funds**
**Note**
**£000**
**Income from:**
Donations and legacies
**3**
473
Other trading activities
**3**
441
Charitable activities
**4**
155
Investments
**5**
5
**Total Income**
**1,074**
**Expenditure from:**
Raising funds
122
Charitables activities
**7**
563
**Total Expenditure**
**685**
**Net income**
**389**
**Net movement in funds**
**389**
**Reconciliation of Funds:**
Total Funds brought forward 1 April
3,828
**4,217**
**Total Funds carried forward 31 March**|**Restricted**
**Funds**
**31**
**£000**
152
0
0
3
**155**
(22)
1,164
**1,142**
**(987)**
**(987)**
1,605
**618**|**Total**
**Funds**
**March 2022**
**£000**
**625**
**441**
**155**
**8**
**1,229**
**100**
**1,727**
**1,827**
**(598)**
**(598)**
**5,433**
**4,835**|**Unrestricted**
**Funds**
**£000**|**Restricted**
**Funds**
**31**
**£000**|**Total**
**Funds**
**March 2021**
**£000**| |---|---|---|---|---|---| ||||1,481
429
292
11
**2,213**
91
1,140
**1,231**
**982**|126
1
16
4
**147**
1
69
**70**
**77**|**1,607**
**430**
**308**
**15**| ||||||**2,360**| ||||||**92**
**1,209**| ||||||**1,301**| ||||||| ||||||**1,059**| ||||||| ||||**982**
2,846
**3,828**|**77**
1,528
**1,605**|**1,059**| ||||||**4,374**| ||||||**5,433**| All gains and losses recognised in the current and prior years are included in the Statement of Financial Activities. All amounts relate to continuing operations. There is no material difference between the net movement in funds as stated above and their historical cost equivalents. Page **19** of **29** Trustee’s Annual Report for Frimley Health Charity for the year ended 31 March 2022 ## **Balance Sheet as at 31 March 2022** |**Unrestricted**
**Funds**
**Note**
**£000**
**Current Assets:**
**9**
Debtors
271
Investments
1,047
Cash at Bank and in Hand
2,101
**Total Current Assets**
**3,419**
**Liabilities**
**10**
Creditors: Amounts falling due within one year
83
**Net Current Assets**
**3,336**
**Total Net Assets**
**3,336**
**Total funds of the Charity**
**11**
Restricted Income Funds
Unrestricted Income Funds
3,427
**Total Charity Funds**
**3,427**|**Restricted**
**Total**
**Funds**
**Funds**
**31 March 2022**
**£000**
**£000**
122
393
471
1,518
944
3,045
**1,536**
**4,955**
38
121
**1,499**
**4,835**
**1,499**
**4,835**
1,408
1,408
3,427
**1,408**
**4,835**|**Unrestricted**
**Funds**
**£000**|**Restricted**
**Funds**
**31**
**£000**|**Total**
**Funds**
**March 2021**
**£000**| |---|---|---|---|---| |||430
2,108
1,400
**3,938**
135
**3,803**
**3,803**|185
903
600
**1,688**
58
**1,630**
**1,630**|615
3,011
2,000| |||||**5,626**| |||||193| |||||**5,433**| |||||| |||||**5,433**| |||||| |||3,828
**3,828**|1,605
**1,605**|1,605
3,828| |||||**5,433**| The notes at pages 22 to 29 form part of these financial statements. The financial statements on pages 19 to 29 were approved by the Corporate Trustee on 13[th] January 2023 and signed on its behalf by: Pradip Patel Chairman Date: 13[th] January 2023 Page **20** of **29** Trustee’s Annual Report for Frimley Health Charity for the year ended 31 March 2022 ## **Statement of Cash Flows** ||**Total**|**Total**| |---|---|---| ||**Funds**|**Funds**| ||**2021/22**|**2020/21**| ||**£000**|**£000**| |Cash flows from operating activities:|(457)|1,463| |Net cash provided by (used in) operating activities||| |**Cash flow from investing activities:**||| |Interest from investments|8|15| |Proceeds from sale of investments|1,500|0| |Purchase of investments|(6)|(240)| |Net cash provided by (used in) operating activities|1,502|(225)| |Change in cash and cash equivalents in the reporting period|1,045|1,238| |Cash and cash equivalents at the beginning of the reporting period|2,000|762| |**Cash and cash equivalents at the end of the reporting period**|**3,045**|**2,000**| |**Reconciliation of net income/(expenditure) to net cash flow from operating activites**||| ||**2021/22**|**2020/21**| ||**£000**|**£000**| |**Net income / (expenditure)**|(598)|1,059| |**Adjustments for:**||| |Interest from investments|(8)|(15)| |Decrease / (increase) in debtors|222|301| |Increase / (decrease) in creditors|(72)|119| |**Net cash provided by (used in) operating activities**|**(457)**|**1,463**| |**Analysis of cash and cash equivalents**||| ||**2021/22**|**2020/21**| ||**£000**|**£000**| |Cash at Bank and in Hand|3,045|2,000| |**Total cash and cash equivalents**|**3,045**|**2,000**| Page **21** of **29** Trustee’s Annual Report for Frimley Health Charity for the year ended 31 March 2022 ## **Notes to the Accounts** ## **1. Accounting Policies** ## a) Basis of preparation The financial statements have been prepared on a going concern basis which the Trustees consider to be appropriate for the following reasons: - The business model of the Charity is such that its charitable activities are limited to those which it has sufficient funds to support from the excess of funding received over the costs of administering the charity. The charity therefore has no specific commitments and no committed costs beyond its fixed costs of operation which are detailed in note 6. - The Trustees have reviewed the cash flow forecasts for a period of 12 months from the date of approval of these financial statements which indicate that the charity will have sufficient funds to meet its liabilities as they fall due for that period. The Trustees have also considered the implications of COVID‐19 on these cash flow forecasts and consider that as a result of its operating model explained above, even if no further funding is received in the 12 month period, the charity has sufficient cash reserves to pay all committed costs. - Consequently, the Trustees are confident that the charity will have sufficient funds to continue to meet its liabilities as they fall due for at least 12 months from the date of approval of the financial statements. - b) Reconciliation with previous generally accepted accounting practice In preparing these accounts, the Trustee has considered whether any restatement of comparatives was required to comply with FRS 102 and the Charities SORP (FRS 102), ## c) Funds Structure Restricted funds are funds that are to be used in accordance with specific restrictions imposed by donors. Unrestricted funds comprise those funds that the Trustee is free to use for any purpose in furtherance of the charitable objects. The funds are disclosed in note 11. - d) Income All income must be recognised when entitlement is established, the monetary value can be reliably measured and the receipt is probable. Legacies are accounted for as income where the receipt of the legacy is probable; this will be once confirmation has been received from the representatives of the estate(s) that probate has been granted; there are sufficient assets in the estate to pay the legacy and that all the conditions of the legacy have been fulfilled or are within the Charity’s control. Page **22** of **29** Trustee’s Annual Report for Frimley Health Charity for the year ended 31 March 2022 ## Gift Aid Gift Aid is included in income when there is a valid declaration from the donor. Any Gift Aid amount recovered on a donation is considered to be part of that gift and is treated as an addition to the same fund as the initial donation unless the donor or the terms of the appeal have specified otherwise. ## e) Expenditure Expenditure is recognised when a liability is incurred. Grant commitments are recognised when a constructive obligation arises which results in a payment being unavoidable. Grants are only made to related or third party NHS bodies and non‐NHS bodies in furtherance of the charitable objects of the funds. A liability for such grants is recognised when approval has been given by the Corporate Trustee. The Trust has full knowledge of the plans of the Trustee, therefore a grant approval is taken to constitute a firm intention of payment, which has been communicated to the Trust, and so a liability is recognised. Contractual arrangements are recognised as goods and services are supplied. ## f) Irrecoverable VAT Irrecoverable VAT is charged against the category of resources expended for which it was incurred. - g) Allocation of support costs Support costs are those costs which do not relate directly to a single activity. These include some staff costs, costs of administration, internal and external audit costs and IT support. Support costs have been apportioned between fundraising costs and charitable activities on the basis of a proportion of total spend. The analysis of support costs and the basis of apportionment applied are shown in note 6. - h) Cost of raising funds The costs of raising funds are fundraising expenses and consultancy costs. ## i) Charitable Activities Costs of charitable activities comprise all costs incurred in the pursuit of the charitable objects of the Charity. These costs include an apportionment of overhead and support costs as shown in note 6 and 7. Page **23** of **29** Trustee’s Annual Report for Frimley Health Charity for the year ended 31 March 2022 ## j) Transfers between funds A transfer between funds is permitted provided the transfer is in keeping with the purpose of the funds and has been agreed by the relevant fund holders in all cases. - k) Cash and cash equivalents Cash at bank and in hand is held to meet the day to day running costs of the Charity as they fall due. - l) Current asset investments Current asset investments include cash on deposit and cash equivalents with a maturity of less than one year held for investment purposes rather than to meet short‐term cash commitments as they fall due. - m) Debtors Debtors are amounts owed to the Charity. They are measured on the basis of their recoverable amount. - n) 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. ## o) Taxation The Charity is a registered charity, and as such is entitled to certain tax exemptions on income and profits from investments, and surpluses on any trading activities carried on in furtherance of the Charity’s primary objects, if these profits and surpluses are applied solely for charitable purposes. - p) Significant accounting estimates and judgements Estimates and judgements are periodically evaluated and are based on historical experience and other factors, including, expectations of future events that are believed to be reasonable under the circumstances. Legacies have been accounted for as income where the receipt of the legacy is considered probable through: - confirmation received from the representatives of the estate that probate has been granted; - the executors have established that there are sufficient assets in the estate to pay the legacy; and - all conditions attached to the legacy have been fulfilled or are within the Charity’s control. Page **24** of **29** Trustee’s Annual Report for Frimley Health Charity for the year ended 31 March 2022 As at 31 March 2021, in addition to the legacy income that has been included in the accounts, the Charity expected to benefit from a number of legacies from estates for which these conditions were not met. - q) Ultimate parent undertaking and controlling party The immediate and ultimate parent undertaking and controlling party is Frimley Health NHS Foundation Trust. The Charity results have not been consolidated within the accounts of Frimley Health NHS Foundation Trust on the basis of materiality. ## **2. Related Party Transactions** The Frimley Health NHS Foundation Trust is the beneficiary of the Charity. The Charity has provided funding to the Trust for approved expenditure made on behalf of the Charity. This funding amounted to £1,808,000 (2020/21 ‐ £1,209,000) and is shown as expenditure from charitable activities. During the year none of the members of the Foundation Trust’s Board of Directors or key management, staff or person(s) related to them have undertaken any material transactions with, or been beneficiaries of, the Charity. The amounts owed to the Charity by the Corporate Trustee as at 31 March 2021 was £2,714 (31 March 2020 £1,153). Amounts owed to the Corporate Trustee by the Charity as at 31 March 2021 were £47,966 (31 March 2020 £49,190). There is no security over the balances. ## **3. Analysis of Donations and Legacies and Other Trading Activities** ||**Unrestricted**
**Funds**
**£000**|**Restricted**
**Funds**
**£000**|**Total**
**31 March 2022**
**£000**|**Unrestricted**
**Funds**
**£000**|**Restricted**
**Funds**
**£000**|**Total**
**31 March 2021**
**£000**| |---|---|---|---|---|---|---| |Donations from Individuals
Voluntary Organisations
Corporate Donations
Legacies
Lottery|336
39
4
133
402|44
‐
‐
108
‐|380
39
4
241
402|1,067
21
95
318
408|115
1
7
5
‐|1,182
22
102
323
408| |**Total**|||**1,066**||**128**|| ||**914**|**152**||**1,909**||**2,037**| Page **25** of **29** Trustee’s Annual Report for Frimley Health Charity for the year ended 31 March 2022 ## **4. Income from Charitable Activities** |Run Frimley
Run Wexham
Race Wexham
Appeals ‐General
Merchandising
Covid Appeal
**Total**|**Unrestricted**
**Funds**
**£000**
‐
‐
‐
152
2
1|**Restricted**
**Funds**
**£000**
‐
‐
‐
‐
‐
‐|**Total**
**31 March 2022**
**£000**
‐
‐
‐
152
2
1
**155**|**Unrestricted**
**Funds**
**£000**
‐
1
‐
100
1
190|**Restricted**
**Total**
**Funds**
**31 March 2021**
**£000**
**£000**
3
3
‐
1
‐
‐
13
113
‐
1
‐
190
**16**
**308**| |---|---|---|---|---|---| ||**155**|**‐**||**292**|| ## **5. Income from investments** |Interest earned on Cash held in
deposit accounts (current asset)
**Total**|**Unrestricted**
**Funds**
**£000**
5|**Restricted**
**Funds**
**£000**
3|**Total**
**31 March 2022**
**£000**
8|**Unrestricted**
**Funds**
**£000**
11|**Restricted**
**Total**
**Funds**
**31 March 2021**
**£000**
**£000**
4
15
**4**
**15**| |---|---|---|---|---|---| ||**5**|**3**|**8**|**11**|| ## **6. Allocation of Support Costs and Overheads** |Financial Services
External Audit
Salaries and related costs
**Total**
**Apportionment of Support Costs**
**across Charitable Activities stated**
**in note 7:**
Financial Services
External Audit
Salaries and related costs
**Total**
**Apportionment of Support Costs**
**across Charitable Activities stated**
**in note 7:**
Financial Services
External Audit
Salaries and related costs
**Total**|**Purchase of new**
**Equipment**
**£000**
10
1
71|**Basis of**
**Apportionment**
Estimate of time
Invoice
Estimate of time
**Staff Education**
**and Welfare**
**£000**
29
4
205|**Total**
**Total**
**31 March 2022**
**31 March 2021**
**£000**
**£000**
50
57
6
6
350
311| |---|---|---|---| ||||**406**
**374**
**Patient Education**
**Total**
**and Welfare**
**31 March 2022**
**£000**
**£000**
11
50
1
6
74
350| ||**82**|**238**|**85**
**406**
**Patient Education**
**Total**
**and Welfare**
**31 March 2021**
**£000**
**£000**
6
57
1
6
34
311| ||**Purchase of new**
**Equipment**
**£000**
10
1
52|**Staff Education**
**and Welfare**
**£000**
41
4
225|| ||**63**|**270**|**41**
**374**| Page **26** of **29** Trustee’s Annual Report for Frimley Health Charity for the year ended 31 March 2022 ## **7. Analysis of Charitable Activities** |**Activities**
**Undertaken Directly**
**£000**
Purchase of New Equipment
133
Patient Education and Welfare
138
Staff Education and Welfare
385
Lottery
285
Other
54
Grants Payable
326
**Total**
**1,321**|**Activities**
**Undertaken Directly**
**£000**
Purchase of New Equipment
133
Patient Education and Welfare
138
Staff Education and Welfare
385
Lottery
285
Other
54
Grants Payable
326
**Total**
**1,321**|**Allocation of**
**Governance Costs**
**£000**
82
85
238
‐
‐
‐|**Total**
**31 March 2022**
**£000**
215
223
623
285
54
326|**Activities**
**Undertaken Directly**
**£000**
107
70
461
182
15
‐|**Allocation of**
**Total**
**Governance Costs**
**31 March 2021**
**£000**
**£000**
63
170
41
111
270
731
‐
182
‐
15
‐
‐
**374**
**1,209**| |---|---|---|---|---|---| ||**1,321**|**406**|**1,727**|**835**|| ## **8. Auditors’ Remuneration** The Auditors’ remuneration was £5,000 excluding VAT and relates directly to work undertaken on the external audit of the Annual Report and Accounts. 2021/22 auditors’ remuneration was also £5,000 excluding VAT. ## **9. Analysis of Current Assets** |**31 March 2022**
**Debtors due within one year**
**£000**
Other debtors
3
Accrued Income
390
Prepayments
‐
**Total**
**393**
**31 March 2022**
**Investments**
**£000**
COIF Deposit Account
750
Bank of Scotland Deposit Account
‐
Lloyds Deposit Account
‐
Santander Deposit Account
768
**Total**
**1,518**
**31 March 2022**
**Cash at Bank and In Hand**
**£000**
Lloyds Bank Current Account
3,045
Barclays Bank Current Account
‐
**Total**
**3,045**|**31 March 2021**
**£000**
26
589
‐| |---|---| ||**615**| ||**31 March 2021**
**£000**
750
750
750
761| ||**3,011**| ||**31 March 2021**
**£000**
2,000
‐| ||**2,000**| Page **27** of **29** Trustee’s Annual Report for Frimley Health Charity for the year ended 31 March 2022 ## **10. Analysis of Liabilities** ||**31 March 2022**|**31 March 2021**| |---|---|---| |**Creditors: Amounts falling due within one year**|**£000**|**£000**| |Other Creditors|48|47| |Accruals|73|146| |**Total**|**121**|**193**| ## **11. Analysis of Charitable Funds** |**Restricted Umbrella Funds:**|**Balance**
**Income**
**Expenditure**
**Balance**
**1 April 2021**
**31 March 2022**
**£000**
**£000**
**£000**
**£000**| |---|---| |Nhs Charities Together
Nhs Charities Together Ics
Fleet Hospital Legacy
Verona Legacy Fund (R)
Dementia Care
Opthalmic Surgery (R)
Holgate Legacy (R)
Ophthalmology Research (R)|221
‐
(203)
**18**| ||324
43
(301)
**66**| ||375
91
(69)
**397**| ||229
‐
(13)
**216**| ||9
‐
(1)
**8**| ||10
19
(3)
**26**| ||713
1
(39)
**675**| ||2
‐
‐
**2**| |**Total**
**Unrestricted Umbrella Funds**
**Total**
**TOTAL**
**Restricted Umbrella Funds:**|| ||**1,883**
**154**
**(629)**
**1,408**| ||3,552
1,074
(1,199)
**3,427**| ||**3,552**
**1,074**
**(1,199)**
**3,427**| ||| ||**5,435**
**1,228**
**(1,828)**
**4,835**| ||**Balance**
**Income**
**Expenditure**
**Balance**
**1 April 2020**
**31 March 2021**
**£000**
**£000**
**£000**
**£000**| |Ophthalmic Surgery
Ophthalmic Research
Verona Legacy Fund
Holgate Legacy
Stroke Appeal
Paediatric Critical Care Appeal|13
0
(3)
**10**| ||2
0
0
**2**| ||239
1
(11)
**229**| ||746
3
(36)
**713**| ||484
128
(9)
**603**| ||43
31
(34)
**40**| |Dementia Campaign
**Total**
**Unrestricted Umbrella Funds**
**Total**
**TOTAL**|0
14
(4)
**10**| ||**1,527**
**177**
**(97)**
**1,607**| ||2,847
2,183
(1,204)
**3,826**| ||**2,847**
**2,183**
**(1,204)**
**3,826**| ||| ||**4,374**
**2,360**
**(1,301)**
**5,433**| Page **28** of **29** Trustee’s Annual Report for Frimley Health Charity for the year ended 31 March 2022 **12. Events after the end of the reporting period** No post balance sheet events have taken place past the end of the reporting period that require adjustment. Page **29** of **29**