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2022-03-31-accounts

Cwm Taf Morgannwg NHS General Charitable Fund Trustee’s Annual Report and Accounts

2021-22

For the Charitable Funds managed by Cwm Taf Morgannwg University Health Board

F O R E W O R D

The Annual Report for the year ended 31 March 2022 has been prepared by the Trustees of Cwm Taf Morgannwg NHS General Charitable Fund in accordance with Part 8 of the Charities Act 2011 and the Charities (Accounts and Reports) Regulations 2005. This should be read together with the Cwm Taf Morgannwg NHS Charitable Funds Annual Accounts, which are appended to the report.

So far as the Trustees are aware, there is no relevant information of which the entity's external auditors are unaware, and the Trustees have taken all the steps that should have been taken to make themselves aware of any relevant information and to establish that the entity's external auditors are aware of that information.

The assets of the Charity are detailed in the Annual Accounts that follow the Trustee’s report. No assets are held on behalf of either charity by another charity or by a Trustee of the Charity.

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REFERENCE AND ADMINISTRATIVE DETAILS

The full name of the charity is:

Cwm Taf Morgannwg NHS General Charitable Fund

There are two special purpose subsidiary charities:

The registration number of the charity is 1049765. The charity is not registered as a company.

The principal registered address of the charity is:

Cwm Taf Morgannwg University Health Board Finance Department Dewi Sant Hospital Pontypridd CF37 1LB

Statutory Background

Cwm Taf Morgannwg University Health Board is the corporate trustee of the funds held on trust under paragraph 16c of Schedule 2 of the NHS and Community Care Act 1990. The role of the trustee however, is essentially performed by the Board of Cwm Taf Morgannwg UHB.

The Corporate Trustee

Those persons who have acted as Directors of the Corporate Trustee during the financial period 1[st] April 2021 to 31[st] March 2022 are as follows:

Executive Directors:

Executive Directors:
Paul Mears Chief Executive
Steve Webster Director of Finance to 1st August 2021
Sally May Director of Finance From 2nd August 2021
Nick Lyons Medical Director to 22nd August 2021
Dom Hurford Interim Medical Director from 1st July 2021
Greg Dix Director of Nursing,
Midwifery and Patient
Care

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Clare Williams
Interim Director of
Planning and
Performance
to 31st May 2021		 Clare Williams
Interim Director of
Planning and
Performance
to 31st May 2021		 Clare Williams
Interim Director of
Planning and
Performance
to 31st May 2021
Linda Prosser
Director of Strategy &
Transformation
from 1st June 2021
Hywel Daniel
Director of People
Kelechi Nnoaham
Director of Public Health
Fiona Jenkins Interim Director of
Therapies and Health
Sciences

Independent Members:

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Marcus Longley Chair To 30th September
2021
Emrys Elias Interim Chair from 1st October 2021
Maria Thomas Vice Chair to 31st May 2021
Jayne Sadgrove Independent Member - to 31st May 2021
University
Vice-Chair
from 1st June 2021
Patsy Roseblade Independent Member –
Finance
James Hehir Independent Member-
Legal
Ian Wells Independent Member-
Information Technology
Keiron Montague Independent Member- to 30th September
Community 2021
Cllr Phillip White Independent Member – until 14th October 2021
Elected Representative
Melu Jehu Independent Member-
Community
Nicola Milligan Independent Member –
Staff
Dilys Jouvenat Independent Member-
Third Sector
Carolyn Donoghue Independent Member - from 4th August 2021
University
Lynda Thomas Independent Member - from 8th October 2021
Corporate Business
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Independent MemberLocal Authority

from 6th January 2022

Cllr Geraint E Hopkins

Bankers

Barclays Bank 93/94 Taff Street Pontypridd Mid Glamorgan CF37 4YH

Internal Auditors

NHS Wales Shared Services Partnership Audit & Assurance Services 4-5 Charnwood Court, Heol Billingsley, Parc Nantgarw, Cardiff CF15 7QZ

External Auditors

Auditor General for Wales Audit Wales 24 Cathedral Road Cardiff CF11 9LJ

Investment Advisors

CCLA Investment Management Limited Senator House 85 Queen Victoria Street London EC4V 4ET

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STRUCTURE, GOVERNANCE and MANAGEMENT

The charity is made up of a total of 156 individual funds as at 31[st] March 2022 (2020-21, 157). Notes 19b and 19c of the accounts distinguish the types of funds held and disclose separately all material funds.

Cwm Taf Morgannwg UHB is the corporate trustee of the charitable fund. The role of trustee is performed by the Board of Cwm Taf Morgannwg UHB. The Chairman and Independent Members are appointed by the Minister for Health and Social Services of the Welsh Government. The Executive Directors are officers of the UHB and are appointed according to Health Board policy and procedure, their appointment being approved by the Board of the UHB. Appropriate training and induction is received on initial appointment followed by periodic development sessions to further develop the understanding of their roles and responsibilities. The Trustees receive no remuneration or expenses from these charitable funds for their trustee duties.

The Board of Cwm Taf Morgannwg UHB is in overall control of all funds held by the Charity. Due to the number of funds held for specific purposes, the Trustees delegate day-to-day administration to Fund Managers. These managers oversee the balances of funds and identify expenditure needs where appropriate.

Any expenditure below £50k is approved in line with the delegation of duties, subject to confirmation from the Finance Department that sufficient funds are available and the expenditure item is consistent with the fund’s objectives. Applications for spending requests of over £50k will require approval of the Charitable Funds Committee.

The accounting records and day-to-day administration of the funds are dealt with by the Finance Department located at Dewi Sant Hospital, Albert Road, Pontypridd, Mid Glamorgan, CF37 1LB.

Exposure to Risk

The Chief Executive of the UHB together with the other directors is responsible for ensuring that an effective system of financial control is maintained. The Chief Executive and other directors are also responsible for reviewing the effectiveness of this system. The Charity operates under the same standing financial instructions and financial control procedures that are applied to the Board’s main operations.

Income and Expenditure is monitored for each individual fund to ensure that spending and firm financial commitments remain within available funds. The Trustees receive periodic reports highlighting the main issues and risks facing the Charity.

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The Charity has identified and examined all major risks that they are exposed to and systems have been established to mitigate these risks. This is supported by the use of Internal Audit to monitor the existing systems to confirm the existence of suitable controls and that these controls are operational. There are no major risks that have been identified other than those associated with the normal fluctuations in the value of investments and the level of reserves available to mitigate the impact of any losses. There are procedures in place to continually review the investment policy and to ensure that spending and financial commitments remain in line with available resources.

OBJECTIVES and ACTIVITIES for the public benefit

Objects and Purposes

The Trustees confirm that they have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing the Charity’s aims and objectives.

The Trustees shall hold the funds upon trust to apply the income, and at their discretion so far as permissible, the capital, for any charitable purpose or purposes relating to the National Health Service (wholly or mainly for the service provided by Cwm Taf Morgannwg UHB) and for any other Health Services for which specific monies have been donated for use within the UK or overseas.

The Cwm Taf Morgannwg NHS General Charitable Fund is funded by donations and legacies received from patients, their relatives, and the general public and other external organisations. It is a grant-making charity, the purpose of which is the relief of those who are ill or disabled and the advancement of education through training.

The overall strategy of the Charity, to enable it to provide this support is achieved by the following means:

Patients Expenditure - Through the purchase of equipment and the provision of services and facilities not normally provided or in addition to the normal NHS provision.

Staff Expenditure - a) Motivation of staff, by improving staff facilities and by providing services that improve staff wellbeing.

b) Education support for staff supplementing that provided by the UHB.

Capital Equipment - By the purchase of equipment. Research - By the funding of staff and purchase of equipment used in the research and development projects carried out by the UHB.

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The role of trustee of the Charity is performed by the corporate body of Cwm Taf Morgannwg UHB and the majority of grant payments made by the Charity are made to the UHB as contributions to the NHS. Other grant payments are made for patient and staff welfare and amenities. The Charity meets its objective by applying its funds and income to make such grant payments, examples of which are given in the Financial Review section of this report.

Grant Making Policy

The Grant making policy is dictated by the objects and purposes of the Charity for the public benefit. Grant payments are made for exclusively charitable purposes in support of Cwm Taf Morgannwg UHB. The Fund Managers who have delegated management of the individual funds may identify possible expenditure provided it falls within the object of the fund, is a reasonable charge to charitable funds and is in furtherance of the objects of the charity. Each item of expenditure is monitored to ensure compliance with these criteria and is then submitted for approval in line with the scheme of delegation of duties.

ACHIEVEMENTS and PERFORMANCE

To fulfil the charitable aims and objectives, the strategy of the charitable funds under the control of Cwm Taf Morgannwg UHB, as Corporate Trustee, is to support the UHB by providing funds to support a wide range of charitable and health related activities benefiting both patients and staff. In general they are used to purchase the varied additional goods and services that the NHS is unable to provide.

The Charity relies on the generosity of patients, their relatives and other donors who are familiar with or have experienced the care of the services within the Cwm Taf Morgannwg UHB for its income.

In addition to this, the NHS Charities Together Covid Appeal raised over £150m across Britain in the last 18 months. In 2020/21 they allocated Stage 1 grants to individual NHS charities of which Cwm Taf Morgannwg UHB Charitable Fund received £168,100 in 2020/21. Subsequent two stages of grant application process has started during 2021/22. These grants will be used as support for NHS staff, patients and for emergency response volunteers.

The Charity is registered with HMRC to recover gift aid income and gift aid income reclaimable for 2021-22 is £2k.

During the year the Charity paid total grants of £403k (2020-21: £389k); these are detailed in note 7 of the accounts.

Examples of how the Charity has achieved its objectives are:

Patients Expenditure - including purchase of specialist chairs, items for the kitchen areas and producing a mural.

Research - Research grants were used to enable staff to attend conferences and modification of a website.

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Technical -

This included specialised gym equipment, hand held digitised vein viewing devices, and oximeters.

Capital -

This included a new SMOTS audio-visual healthcare simulation recording system at Endoscopy Department, RGH Hospital.

Further details of expenditure are shown in the Financial Review.

The Charity has adopted an investment strategy which aims to deliver a positive real return with a minimum of risk. The Trustees appointed CCLA Investment Management Limited as independent investment advisors. Details of investments and returns are highlighted in the Investment section below.

FINANCIAL REVIEW

Reserves Policy

Reserves are those funds retained which can be freely used at the discretion of the Trustees in furtherance of any of the Charity’s objectives. Reserves therefore do not include funds that have restrictions on them or funds that have been obtained for a specific purpose.

As the Charity’s financial procedures do not allow expenditure to be committed without the funds in place then the charity will always be able to meet its commitments as they fall due. The unrestricted reserves at 31[st] March 2022 stand at £3,085k, with £138k from this amount being committed for future expenditure.

Movement in Net Assets

The net assets of the Charitable Funds as at 31[st] March 2022 were £4,222k (2020-21:£3,836k). This comprised of unrestricted funds of £3,085k (202021:£2,885k) and restricted funds of £1,137k (2020-21:£951k). Overall net assets increased by £386k reflecting an excess of income over expenditure. The Charity’s Trustees are under a duty to apply the charity’s income within a reasonable time of receiving it. Fund managers have, therefore, been actively encouraged to identify expenditure that would further the objectives of the Charity.

Income

The charity continues to rely on donations, legacies and investment income as its main sources of income. However in the recent years it also received grant allocations, including £168k received in 2020-21 from NHS Charities Together.

The Trustees are extremely grateful to those members of the public, staff and organisations who have made contributions to the charitable funds during the last financial year.

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The table below demonstrate the various sources of income for the year 202122.

STATEMENT OF INCOME FOR THE YEAR ENDED 31 MARCH 2022

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Unrestricted Restricted 2021-22 2020-21
£000 £000 £000 £000
Donations 126 22 148 380
Legacies 367 0 367 155
Grants 7 22 29 183
Interest and dividends 56 23 79 65
Other trading activities 0 4 4 0
Incoming Resources from
0 0 0 0
Charitable Activities
Total Incoming
556 71 627 783
Resources
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Donations

During 2021-22 a total of £148k (2020-21:£380k) was received in the form of donations. A variety of donations were received throughout the year, a few examples of which are listed below:

Legacies

During the year, the Charity was a beneficiary of legacies with a total value of £367k (2020-21: £155k).

All legacies, where contact details are available, are acknowledged formally with a letter of thanks to the family.

Grants

During the year, the Charity received grants totalling £29k (2020-21: £183k). In addition, Stage 2 and Stage 3 NHS Charities Together grant application process commenced during 2021-22 with anticipated receipt in 2022-23.

Investments

CCLA Investment Management Limited is appointed as Investment Advisors to the Charity.

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Total amount invested in the Charities Ethical Investment Fund at the start of 2021-22 was £1,500k with a market value of £2,144k. An additional £600k was invested in the same fund in the 2nd quarter of the year, bringing the total balance invested as at 31st March 2022 to £2,100k. No other investments were held.

The Market Value of the fund at 31[st] March 2022 was £2,906k, showing a cumulative net gain of £806k. £644k of this gain was recognised previously in the account and as detailed within Note 13 of the Financial Statements; the £162k of increase during this reporting period is reflected in 2021-22 annual accounts.

During the year the Charity received £79k (2020-21: £65k) as a dividend on the Ethical Investment Fund. The charges levied by CCLA are reflected within the market price of the units, and therefore, the value of the investment at the Balance Sheet date.

Exposure to fluctuations in the value of its investments are continually reviewed and reported to the Corporate Trustees. Quarterly Investment reports are prepared by CCLA and an annual presentation from the Investment Advisors updates the Trustees on the current and forecast market trends.

Liquidity risk is managed through having sufficient funds held in cash deposits to meet all known commitments without having to realise any investments that are subject to market fluctuations.

The Investment Strategy of the Health Board’s Charitable Funds states that: “Should the reserve exceed 20% of overall investment, any excess will be distributed to individual fund balances, subject to Charitable Fund Committee approval.” The surplus exceeding 20% as at the end of June 2021 was £497k. Subsequent to the Committee approval, the excess gain was distributed to the fund balances as detailed in Notes 18 and 19 of the accounts.

Expenditure

The Charity is primarily a grant making body, providing grants to the Cwm Taf Morgannwg UHB, from which many areas of service provision benefit. During 2021-22, charitable expenditure on direct charitable activity, including support costs, totalled £403k (2020-21: £389k).

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ANALYSIS OF EXPENDITURE FOR THE YEAR ENDED 31 MARCH 2022

Unrestricted Restricted 2021-22 2020-21
£000 £000 £000 £000
Fundraising
trading:
costs of goods sold and
other costs
0		 0 0 0
Charitable Activities 315 88 403 389
Total Resources
Expended		 315 88 403 389

The detail of the expenditure on Charitable Activities is shown in the annual accounts within Note 7.

A number of specific highlights during the year for charitable expenditure are listed below:

Support Costs

The support costs of administration for 2021-22 were £98k (2020-21: £80k). These figures are shown in the annual accounts within Note 7 and Note 10 under support costs and split between finance and administration costs.

The charity does not directly employ any members of staff, finance and administration costs relate to the cost of staff recharged from Cwm Taf Morgannwg University Local Health Board.

The difference between the dividend income and the support costs are allocated to the charitable funds on an average fund balance basis.

On behalf of the staff and patients who have benefited from the improved services the Trustees would like to thank all patients, relatives, staff and members of the public who have made charitable donations and helped with fundraising activities. The level of activity will continue to be dependent upon the generosity of these donors and the receipt of legacies. The Trustees would also like to thank the organisations who have provided the Charity with grants during the year.

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Signed

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Chairperson : ________ Date : 26th January 2023
Cwm Taf Morgannwg UHB
On behalf of the Trustees
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Cwm Taf Morgannwg NHS General Charitable Fund ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2022

FOREWORD

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 on 16 July 2014 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 2015

STATUTORY BACKGROUND

The Cwm Taf Morgannwg University Health Board is the corporate trustee of the charity under paragraph 16c of Schedule 2 of the NHS and Community Care Act 1990.

The Trustees have been appointed under s11 of the NHS and Community Care Act 1990.

MAIN PURPOSE OF THE FUNDS HELD ON TRUST

The main purpose of the charity is to apply income for any charitable purposes relating to the National Health Service wholly or mainly for the services provided by the Cwm Taf Morgannwg University Health Board.

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Cwm Taf Morgannwg General Charitable Fund Statement of Financial Activities for the year ended 31 March

Unrestricted
funds
Note
£000
Incoming resources from generated funds:
Donations and legacies
3
500
Charitable activities
0
Other trading activities
0
Investments
5
56
Other
0
Total incoming resources
556
Expenditure on:
Raising Funds
6
0
Charitable activities
7
315
Other
0
Total expenditure
315
Net gains / (losses) on investments
13
162
Net income / (expenditure)
403
Transfer between funds
18
(203)
Net movement in funds
200
Reconciliation of Funds
Total Funds brought forward
19
2,885
Total Funds carried forward
3,085		 Restricted
Income
funds
£000
44
0
4
23
0
71
0
88
0
88
0
(17)
203
186
951
1,137		 Total
Funds
2021-22
£000
544
0
4
79
0
627
0
403
0
403
162
386
0
386
3,836
4,222

Cwm Taf Morgannwg General Charitable Fund Statement of Financial Activities for the year ended 31 March

Restricted
Unrestricted
Income
funds (restated) funds (restated)
Note
£000
£000
Incoming resources from generated funds:
Donations and legacies
3
621
97
Charitable activities
0
0
Other trading activities
0
0
Investments
5a
50
15
Other - Funds transferred from another NHS body
0
Total incoming resources
671
112
Expenditure on:
Raising Funds
6
0
0
Charitable activities
7
278
111
Other
(3)
2
Total expenditure
275
113
Net gains / (losses) on investments
13
359
0
Net income / (expenditure)
755
(1)
Transfer between funds
18
2
(2)
Net movement in funds
757
(3)
Reconciliation of Funds
Total Funds brought forward
19
2,128
954
Total Funds carried forward
2,885
951		 Restated
Total
Funds
2020-21
£000
718
0
0
65
0
783
0
389
(1)
388
359
754
0
754
3,082
3,836

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Cwm Taf Morgannwg General Charitable Fund Balance Sheet as at 31 March 2022

Unrestricted
funds
Note
£000
Fixed assets:
Investments
13
2,150
Total fixed assets
2,150
Current assets:
Debtors
14
27
Cash and cash equivalents
15
1,004
Total current assets
1,031
Liabilities:
Creditors: Amounts falling due within one year
16
(96)
Net current assets / (liabilities)
935
Total assets less current liabilities
3,085
Creditors: Amounts falling due after more than
16
0
one year
Total net assets / (liabilities)
3,085
The funds of the charity:
Endowment Funds
19
0
Restricted income funds
19
0
Unrestricted income funds
19
3,085
Total funds
3,085		 Restricted
Income
funds
£000
756
756
18
408
426
(45)
381
1,137
0
1,137
0
1,137
0
1,137		 Total
31 March
2022
£000
2,906
2,906
45
1,412
1,457
(141)
1,316
4,222
0
4,222
0
1,137
3,085
4,222		 Total
31 March
2021 (restated)
£000
2,144
2,144
30
1,784
1,814
(122)
1,692
3,836
0
3,836
0
951
2,885
3,836

The notes on pages 18 to 30 form part of these accounts

Signed : .................................................................................... Name : ..............................................................(Chair of Trustees)Emrys Elias 26th January 2023 Date : ........................................................................................

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Cwm Taf Morgannwg General Charitable Fund Statement of Cash Flows for the year ending 31 March 2022

Note
Cash flows from operating activities:
Net cash provided by (used in) operating activities
17
Cash flows from investing activities:
Dividend, interest and rents from investments
5
Proceeds from the sale of investments
13
Purchase of investments
13
Net cash provided by (used in) investing activities
Change in cash and cash equivalents in the
reporting period
Cash and cash equivalents at the begining of the
15
reporting period
Cash and cash equivalents at the end of the
15
reporting period		 Total
Funds
2021-22
£000
149
79
0
(600)
(521)
(372)
1,784
1,412		 Total
Funds
2020-21
£000
338
65
0
0
65
403
1,381
1,784

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Note on the accounts

1 Accounting Policies

(a) Basis of preparation

The financial statements have been prepared under the historic cost convention, with the exception of investments which are included at fair 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 on 16 July 2014 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 2015.

The accounts (financial statements) have been prepared to give a ‘true and fair’ view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a ‘true and fair view’. This departure has involved following 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 on 16 July 2014 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.

The Trustees consider 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 trustees have arrangements in place to mitigate those risks (see the risk management and reserves sections of the annual report for more information).

The Charity meets the definition of a public benefit entity under FRS 102.

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(b) Funds structure

Where there is a legal restriction on the purpose to which a fund may be put, the fund is classified either as:

Restricted funds are those where the donor has provided for the donation to be spent in furtherance of a specified charitable purpose. The Charity’s restricted funds tend to result from appeals or legacies for specified purposes.

Endowment funds arise when the donor has expressly provided that the gift is to be invested and only the income of the fund may be spent. These funds are sub analysed between those where the Trustees have the discretion to spend the capital (expendable endowment) and those where there is no discretion to expend the capital (permanent endowment).

Those funds which are neither endowment nor restricted income funds, are unrestricted income funds which are sub analysed between designated (earmarked) funds where the Trustees have set aside amounts to be used for specific purposes or which reflect the non-binding wishes of donors and unrestricted funds which are at the Trustees’ discretion, including the general fund which represents the charity’s reserves. The major funds held in each of these categories are disclosed in note 19.

(c) Incoming resources

Income consists of donations, legacies, income from charitable activities and investment income.

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

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

(d) Incoming resources from legacies

Legacies are accounted for as incoming resources either upon receipt or where the receipt of the legacy is probable, whichever falls sooner.

Receipt is probable when:

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

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(e) Incoming resources from endowment funds

The Charity has not received nor does it hold any endowment funds.

(f) Resources expended and irrecoverable VAT

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to each category of expense shown in the Statement of Financial Activities. Expenditure is recognised when the following criteria are met:

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

(g) Recognition of expenditure and associated liabilities as a result of grants

Grants payable are payments made to linked, related party or third party NHS bodies and non NHS bodies, in furtherance of the charitable objectives of the funds held on trust, primarily relief of those who are sick.

Grant payments are recognised as expenditure when the conditions for their payment have been met or where there is a constructive obligation to make a payment.

A constructive obligation arises when:

The Trustees have control over the amount and timing of grant payments and consequently where approval has been given by the trustees and any of the above criteria have been met then a liability is recognised. Grants are not usually awarded with conditions attached. However, when they are then those conditions have to be met before the liability is recognised.

Where an intention has not been communicated, then no expenditure is recognised but an appropriate designation is made in the appropriate fund. If a grant has been offered but there is uncertainty as to whether it will be accepted or whether conditions will be met then no liability is recognised but a contingent liability is disclosed.

(h) Allocation of support costs

Support costs are those costs which do not relate directly to a single activity. These include staff costs, costs of administration, internal and external audit costs. Support costs have been apportioned between fundraising costs and charitable activities on an appropriate basis. The analysis of support costs and the bases of apportionment applied are shown in note 10. Where costs are apportioned to unrestricted funds the cost is charged to a general purpose fund, where costs are apportioned to restrictced funds, the cost is charged to each individual fund.

(i) Fundraising costs

The costs of generating funds are those costs attributable to generating income for the charity, other than those costs incurred in undertaking charitable activities or the costs incurred in undertaking trading activities in furtherance of the charity’s objects. The Charity does not currently undertake any fund raising activity.

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(j) Charitable activities

Costs of charitable activities comprise all costs incurred in the pursuit of the charitable objects of the Charity. These costs, where not wholly attributable, are apportioned between the categories of charitable expenditure in addition to the direct costs. The total costs of each category of charitable expenditure include an apportionment of support costs as shown in note 7.

(k) Debtors

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

(l) Fixed Asset Investments

Investments are a form of basic financial instrument. Fixed Asset investments are initially recognised at their transaction value and are subsequently measured at their fair value (market value) at the balance sheet date. The Statement of Financial Activities includes the net gains and losses arising on revaluation and disposal throughout the year. Quoted stocks and shares are included in the Balance Sheet at the current mid price market value quoted by the investment analyst, excluding dividend. The SORP recommends that the bid price market price be used in valuing stocks and shares, although the difference between the bid and mid market price is not material. Other investments are included at the trustees' best estimate of market value.

The main form of financial risk faced by the charity is that of volatility in equity markets and investment markets due to the wider economic conditions, the attitude of investors to investment risk and changes in sentiment concerning equities and within particular sectors or sub sectors. Further information on the Charity's investments can be found in note 13.

(m) 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. Cash equivalents are short term, highly liquid investments, are invested in a long-term plan under charities ethical investment fund.

(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.

Amounts which are owed in more than a year are shown as long term creditors.

(o) Realised gains and losses

All gains and losses are taken to the Statement of Financial Activities as they arise. Realised gains and losses on investments are calculated as the difference between sales proceeds and opening carrying value (purchase date if later). Unrealised gains and losses are calculated as the difference between the market value at the year end and opening carrying value (or purchase date if later).

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2. Related party transactions

Cwm Taf Morgannwg Health Board is the Corporate Trustee of the Charity.

During the year, other than noted below, there are no other material related party transactions involving the Corporate Trustee and the Board Members.

Board Members (and other senior staff) take decisions both on Charity and Exchequer matters but endeavour to keep the interests of each discrete and do not seek to benefit personally from such decisions. Declarations of personal interest have been made and are available to be inspected by the public. The Chairty has made revenue and capital payments of £287k (2020-21 323k) to the Cwm Taf Morgannwg University Health Board.

----- Start of picture text -----
Name Details Related Party Interests
Mr Greg Dix Director of Nursing, Visiting Professor at University of South
Midwifery & Patient Care Wales.
Spouse is employee of Cwm Taf
Morgannwg University Health Board.
Dr Nicholas T Lyons Executive Medical Spouse is employee of Cwm Taf
Director to 22 August Morgannwg University Health Board.
2021
Dr Kelechi Nnoaham Director of Public Health Honorary professorship Cardiff University.
Spouse is employee of Cwm Taf
Morgannwg University Health Board.
Mrs Maria Thomas Vice Chair to 31.05.21 Director of Winchfawr Investment, a
Private Limited Company.
Melvin Jehu Independent Member Chair (Standards Committee) Rhondda
Cynon Taf Council.
Independent Member Audit &
Governance Committee - Rhondda
Cynon Taf Council.
Spouse is employee of Cwm Taf
Morgannwg University Health Board.
Carolyn Donoghue Independent Member Governor - University of the West of
England
Geraint Hopkins Independent Member Elected Member Rhondda Cynon Taf
Council.
Mrs Jayne Sadgrove Independent member Senior Professional Fellow & Trustee-
Cardiff University.
Son is employee of Cardiff University
School of Healthcare Sciences.
----- End of picture text -----

The total value of related party transcations in 2021-22 were as follows:

Related Party **Expenditure ** Income Creditors Debtors
£000 £000 £000 £000
University of South Wales 6 0 0 0
University of the West of England 5 0 2 0
Rhondda Cynon Taf Council 7 0 2 0

3. Income from donations and legacies

Donations
Legacies
Grants		 Unrestricted
funds
£000
126
367
7
500		 Restricted
Income
funds
£000
22
0
22
44		 Total
2021-22
£000
148
367
29
544		 Total
2020-21
£000
380
155
183
718

4. Role of volunteers

Like all charities, the Charity is reliant on a team of volunteers for our smooth running.

They run events such as cake sales, sponsored events, sports challenges, tea parties and collections in order to raise funds.

In accordance with the SORP, due to the absence of any reliable measurement basis, the contribution of these volunteers is not recognised in the accounts.

5. Gross investment income

Fixed asset equity and similar investments
Short term investments, deposits and cash
on deposit		 Unrestricted
funds
£000
56
0
56		 Restricted
Income
funds
£000
23
0
23		 Total
2021-22
£000
79
0
79		 Total
2020-21
£000
65
0
65

21

6. Analysis of expenditure on raising funds

Fundraising office
Fundraising events
Investment management
Support costs		 Unrestricted
funds
£000
0
0
0
0
0		 Restricted
Income
funds
£000
0
0
0
0
0		 Total
2021-22
£000
0
0
0
0
0		 Total
2020-21
£000
0
0
0
0
0

7.Analysis of charitable activity

Medical research
Purchase of new equipment
Building and refurbishment
Staff education and welfare
Patient education and welfare
Other		 Grant funded
activity
£000
10
51
0
166
75
2
304		 Support
costs
£000
3
17
0
52
26
1
99		 Total
2021-22
£000
13
68
0
218
101
3
403		 Total
2020-21
£000
43
91
9
58
185
3
389

Note 10 sets out an analysis of support costs.

8.Analysis of grants

The Charity does not make grants to individuals. All grants are made to Cwm Taf Morgannwg Health Board to provide for the care of NHS patients in furtherance of our charitable aims. The total cost of making grants, including support costs, is disclosed on the face of the Statement of Financial Activities and the actual funds spent on each category of charitable activity, is disclosed in note 7.

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

22

9. Movements in funding commitments

Opening balance at 1 April (see note 16)
Movement in liabilities
Closing balance at 31 March (see note 16)		 Current
liabilities
£000
122
19
141		 Non-current
liabilities
£000
0
0
0		 Total
31 March
2021-22
£000
122
19
141		 Total
31 March
2020-21
£000
122
0
122

As described in notes 7 and 8, the charity awards a number of grants in the year. Many grants are awarded and paid out in the same financial year. However, some grants, especially those relating to research and development or for funding a specific posts are multi-year grants paid over a longer period.

10. Allocation of support costs

Support and overhead costs are allocated between fundraising activities and charitable activities. Governance costs are those support costs which relate to the strategic and day to day management of a charity. The average fund balance is used as the general basis of apportionment of support costs. Where the cost is apportioned to an unrestricted fund this is charged to the health board wide general pupose fund, and where it is apportioned to a restricted fund this is charged to each individual fund.

Raising
funds
£000
Governance
External audit
0
Finance and administratio
0
Other professional fees
0
Total governance
0
Finance and administratio
0
Other professional fees
0
Other costs
0
0
Unrestricted
funds
£000
Raising funds
0
Charitable activities
70
70		 Charitable
activities
£000
25
0
0
25
72
0
1
98
Restricted
Income
funds
£000
0
28
28		 Total
2021-22
£000
25
0
0
25
72
0
1
98
Endowment
funds
£000
0
0
0		 Total
2020-21
£000
10
0
0
10
70
0
0
80
Total
Funds
2021-22
£000
0
98
98		 Basis
Average fund balance
Average fund balance
Total
Funds
2020-21
£000
0
80
80

11. Staff costs, Trustees' remuneration, benefits and expenses

The Charity does not make any payments for remuneration nor to reimburse expenses to the Charity trustees for their work undertaken as trustee.

The charity has no employees. Staff services are provided to the Charity from Cwm Taf Morgannwg Health Board, the corporate Trustee of the charitable trust, which has received reimbursement from the charitable trust of £72,368 (2021: £68,545)

23

12. Auditors remuneration

Auditors’ remuneration of £25,000 (2020-21: £10,000) relates to Audit Wales’ audit of the statutory annual report and accounts.

While in 2020-21 the Charity was charged £10,000 by the Health Board, Audit Wales’ fee estimate for 2020-21 was £25,000. Given the increase in costs associated with a full audit from 2019-20, the Health Board’s management agreed to fund actual audit costs in excess of the £10,000 in 2019-20 and 2020-21.

The Charity is charged the full Audit Wales' fee estimate of £25,000 in 2021-22.

13. Fixed asset investments

Movement in fixed assets investments

Market value brought forward
Add: additions to investments at cost
Less disposals at carrying value
Add net gain / (loss) on revaluation
Market value as at 31st March 2022		 Total
2021-22
£000
2,144
600
0
162
2,906		 Total
2020-21
£000
1,785
0
0
359
2,144

All investments are carried at their fair value.

Total amount invested in the Charities Ethical Investment Fund managed by CCLA Fund Managers Ltd, at the start of the year was £1.5m. An additional £0.6m was invested in the same fund in the 2nd quarter of 2021-22 bringing the total balance invested as at 31st March 2022 to £2.1m. The Market Value of the fund at 31[st] March 2022 was £2.906m., showing a cumulative net gain of £0.806m. No other investments were held.

The main investment risk lies in the volatility of the investment markets which affects both the value of those investments and dividend yields. The Charity attempts to manage this risk by:

· Investing long-term, and only investing cash not required for operational purposes in the foreseeable future

· Appointing CCLA to provide advice on investments and market situations

· Investing in a highly diversified fund thus spreading risk over asset classes and geographical areas.

Liquidity risk is managed through having sufficient funds held in cash deposits to meet all known commitments without having to realise any investments that are subject to market fluctuations.

24

14. Analysis of current debtors

Debtors under 1 year
Accrued income
Prepayments
Other debtors
Analysis of cash and cash equivalents
Cash in hand
Notice deposits (less than 3 months)		 Total
31 March
2022
£000
30
7
8
45
Total
31 March
2022
£000
1,412
0
1,412		 Total
31 March
2021
£000
27
1
2
30
Total
31 March
2021
£000
1,784
0
1,784

15. Analysis of cash and cash equivalents

No cash or cash equivalents or current asset investments were held in non-cash investments or outside of the UK.

16. Analysis of liabilities

Creditors under 1 year
Trade creditors
Other creditors
Accruals
Creditors over 1 year
Trade creditors
Other creditors
Accruals
Total creditors		 Total
31 March
2022
£000
38
1
102
141
0
0
0
0
141		 Total
31 March
2021
£000
43
1
78
122
0
0
0
0
122

25

17. Reconciliation of net income / expenditure to net cash flow from operating activities

Net income / (expenditure) (per Statement of
Financial Activities)
Adjustment for:
Depreciation charges
(Gains) / losses on investments
Dividends, interest and rents from investments
Loss / (profit) on the sale of fixed assets
(Increase) / decrease in stocks
(Increase) / decrease in debtors
Increase / (decrease) in creditors
Net cash provided by (used in) operating activities		 Total
2021-22
£000
386
0
(162)
(79)
0
0
(15)
19
149		 Total
2020-21
£000
754
0
(359)
(65)
0
0
8
0
338

18. Transfer between funds

The transfers between funds reflect the consolidation of small value or little used funds to ensure they remain of suitable value and better purpose to meet the objectives of the fund. Where similar purpose funds are identified there may also be transfers between those funds. Fund number 9302 was deemed to be similar to another restricted fund, therefore the £3k balance was transferred from unrestricted to restricted funds.

The Investment Strategy of the Charitable Funds states that " Should the reserve exceed 20% of overall investment, any excess will be distributed to individual fund balances, subject to Charitable Fund Committee approval." The surplus exceeding 20% as at the end of June 2021 was £497k. Subsequent to the Charitable Fund Committee approval, the excess gain was distributed to funds on an average fund balance methodology. In accordance with this methodology £200k was distributed to individual restricted funds and the remaining £297k of gain attributed to unrestricted funds was split between £50k allocated to an enablement fund and £247k was allocated to the General Purpose fund. The distribution of this gain is disclosed as transfers of funds within Note 19b and 19c.

19. Analysis of funds

a. Analysis of endowment fund movements

The Charity does not hold any endowment funds.

26

b. Analysis of restricted fund movements

A
Giving to Pink
B
Mr Edward Rees Davies
C
Heart faliure
D
GP Vocational Training Scheme (VTS)
E
Medical Unit Wards Fund - RGH
F
Rheumatology Research
G
Restricted Colorectal Research Fund
H
Maxillo Facial Unit
I
POW Hospital Radiology Scanner Fund
J
X-Ray
K
Intensive Care
L
ROSSLYN CHIDGEY - PCH
M
Urology Research
N
Paediatric Wards
Other restriced funds (34)		 Balance
1 April
2021
£000
301
250
55
45
45
27
20
22
32
14
12
5
14
13
96
951		 Income
£000
10
6
1
14
1
1
3
1
1
1
5
0
0
1
26
71		 Expenditure
£000
(9)
(20)
(2)
(9)
(7)
(1)
(1)
(2)
(9)
0
(1)
0
0
0
(27)
(88)		 Transfers
£000
53
43
3
7
8
7
11
5
2
4
2
12
2
2
42
203		 Gains
and
losses
£000
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0		 Balance
31 March
2022
£000
355
279
57
57
47
34
33
26
26
19
18
17
16
16
137
1,137

The objects of the material restricted funds are as follows:

Giving to Pink is a charity group that make donations for a ‘specialist breast care unit’ within Cwm Taf Morgannwg University Health Board.

The Edward Rees Davies fund is a legacy left for the care and treatment of the stroke patients across the Health Board. Items for individual patient benefit.

As noted within Note 18, £497k of unrealised gain on investment was distributed to restricted and unrestricted funds and disclosed as transfers within the table above.

c. Analysis of unrestricted and material designated fund movements

A
YCC & MHP Wards/Departments
B
General Purposes
C
YF46-POW Diabetic Adults
D
YB41-Y Bwthyn Newydd
E
Covid-19 Coronavirus
F
PCH General Purposes
G
POW General Purposes
H
YN61-Maesteg General Purposes
I
Pathology Fund
J
YH42-POW Paediatric
K
Cardiac/Coronary Care
L
Intensive Care Unit Fund
M
Palliative Hospital Fund
N
RGH General Purposes
O
Enablement Fund
Other unrestriced funds (93)		 Balance
1 April
2021
£000
255
14
252
198
281
73
15
130
37
83
61
53
55
45
0
1,333
2,885		 Income
£000
14
58
1
39
10
92
156
1
92
2
1
9
1
7
0
73
556		 Expenditure
£000
(12)
(70)
(5)
(29)
(93)
0
(7)
0
0
(8)
(2)
(4)
(3)
0
0
(82)
(315)		 Transfers
£000
0
247
0
0
0
0
0
0
0
0
0
0
0
0
50
(500)
(203)		 Gains
and
losses
£000
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
162
162		 Balance
31 March
2022
£000
257
249
248
208
198
165
164
131
129
77
60
58
53
52
50
986
3,085

The POW Diabetic Adults was transferred by ABMUHB and the fund is designated for the welfare and benefit of patients and staff of the Princess of Wales Hospital Diabetic Unit.

The Y Bwthyn Newydd fund was also transferred by ABMUHB and the fund is designated for the welfare and benefit of staff and patients of the Y Bwythyn Newydd Unit.

The fund balance for YCC & MHP Wards/Departments mainly includes a legacy left by Mr Edward Rees Davies for the benefit of patients being cared for at Ysbyty Cwm Cynon.

A cumulative balance of £309k relating to unrealised gains on investments (as detailed in note 13) is included within the other unrestricted funds' balances above.

All unrestricted funds are designated except for the general purpose and enablement funds.

As detailed within Note 18, £497k of unrealised gain on invetsments was distributed to restricted and unrestricted funds and disclosed as transfers within the table above.

27

20. Commitments

As at 31/03/22 the Charity has committed the following amounts against its funds:

Restricted funds:
POW Hospital Radiology Scanner Fund
RGH Breast Unit Fund
Unrestricted and designated funds:
POW Intensive Care - YA02
POW Cardiology Study Fund - YC22
POW Paediatric - YH42
East Organ Donation & Transplantation Fund - YH49
Breast Care Endowment Fund
Colorectal Research and Education Fund
YCC & MHP Wards/Departments
Covid-19 Coronavirus
PCH General Purposes
Total commitments		 £000
1
2
3
10
1
4
1
7
3
6
102
1
135
138

Commitments detail grants that have been agreed but have not yet been made. All commitments are planned to be delivered within the next two financial years. Commitments are only made when funding exists within the relevant fund.

21. Events after the Reporting Period

No significant events reported.

28

Statement of Trustee’s Responsibilities

The Trustee is responsible for preparing the Trustee’s Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards.

The law applicable to Charities in England and Wales requires the trustee to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that period.

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

The Trustee is responsible for keeping accounting records which disclose with reasonable accuracy the financial position of the charity which enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations and the provisions of the trust deed. The trustee is also responsible for safeguarding the assets of the charity and taking reasonable steps for the prevention and detection of fraud and other irregularities.

The trustee confirms that they have complied with the above requirements in preparing the accounts.

By order of the trustee:

Signed:

Emrys Elias 26th January 2023 Trustee ………………………………………………………………………………………………………………. Dated…………………………… 26th January 2023 Financial Trustee………………………………………………………………………... Dated……………………………………

Sally May Director of Finance - Cwm Taf Morgannwg University Health Board

29

The independent auditor’s report of the Auditor General for Wales to the Trustee of Cwm Taf Morgannwg University Local Health Board Charity

Report on the audit of the financial statements

Opinion

I have audited the financial statements of Cwm Taf Morgannwg University Local Health Board Charity for the year ended 31 March 2022 under the Charities Act 2011. These comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In my opinion the financial statements:

Basis for opinion

I conducted my audit in accordance with applicable law and International Standards on Auditing in the UK (ISAs (UK)) and Practice Note 10 ‘Audit of Financial Statements of Public Sector Entities in the United Kingdom’. My responsibilities under those standards are further described in the auditor’s responsibilities for the audit of the financial statements section of my report. I am independent of the charity in accordance with the ethical requirements that are relevant to my audit of the financial statements in the UK including the Financial Reporting Council’s Ethical Standard, and I have fulfilled my other ethical responsibilities in accordance with these requirements. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion.

Conclusions relating to going concern

In auditing the financial statements, I have concluded that the use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work I have performed, I have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the body’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from when the financial statements are authorised for issue.

My responsibilities and the responsibilities of the trustee with respect to going concern are described in the relevant sections of this report.

Report on other requirements

Other information

The other information comprises the information included in the annual report other than the financial statements and my auditor’s report thereon. The trustee is responsible for the other information contained within the annual report. My opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in my report, I do not express any form of assurance conclusion thereon.

My responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If I identify such material inconsistencies or apparent material misstatements, I am required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work I have performed, I conclude that there is a material misstatement of this other information, I am required to report that fact.

I have nothing to report in this regard.

Matters on which I report by exception

I have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require me to report to you if, in my opinion:

Responsibilities

Responsibilities of the trustee for the financial statements

As explained more fully in the statement of trustee responsibilities set out on page 29, the trustee is responsible for preparing the financial statements in accordance with the Charities Act 2011, for being satisfied that they give a true and fair view, and for such internal control as the trustee determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustee is responsible for 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 deemed inappropriate.

Auditor’s responsibilities for the audit of the financial statements

I have been appointed as auditor under section 150 of the Charities Act 2011 and report in accordance with regulations made under section 154 of that Act.

My 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 an auditor’s report that includes my opinion. Reasonable assurance is a high level of assurance but is not a 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 the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

My procedures included the following:

In addition to the above, my procedures to respond to identified risks included the following:

I also communicated relevant identified laws and regulations and potential fraud risks to all audit team and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

The extent to which my procedures are capable of detecting irregularities, including fraud, is affected by the inherent difficulty in detecting irregularities, the effectiveness of the Cwm Taf Morgannwg University Local Health Board Charity’s controls, and the nature, timing and extent of the audit procedures performed.

A further description of the auditor’s responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website www.frc.org.uk/auditorsresponsibilities. This description forms part of my auditor’s report.

Adrian Crompton 24 Cathedral Road Auditor General for Wales Cardiff 27 January 2023 CF11 9LJ

The maintenance and integrity of the Health Board’s website is the responsibility of the Accountable Officer. The work carried out by auditors does not involve consideration of these these matters and accordingly auditors accept no responsibility for any changes that may have occurred to the financial statements since they were initially presented on the website.