# **Cwm Taf Morgannwg NHS General Charitable Fund Trustee’s Annual Report and Accounts**
**2022-23**
**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 2023 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:
- Cwm Taf Morgannwg NHS Research and Training Charity
- Cwm Taf Morgannwg NHS Staff and Patients Welfare Charity
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 2022 to 31[st] March 2023 are as follows:
## **Executive Directors:**
|**Executive Directors:**|||
|---|---|---|
|Paul Mears|Chief Executive||
|Sally May|Director of Finance||
|Dom Hurford|Interim Medical Director
Medical Director|To 1stMay 2022
from 2ndMay 2022|
|Greg Dix|Director of Nursing,
Midwifery and Patient
Care
Deputy Chief Executive
Officer|from 1st March 2023|
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|Linda Prosser|Director of Strategy &
Transformation||
|---|---|---|
|Hywel Daniel|Director of People||
|Kelechi Nnoaham|Director of Public Health|to 30th November 2022|
|Lauren Edwards|Director of Therapies
and Health Sciences||
## **Independent Members:**
**----- Start of picture text -----**
Emrys Elias Interim Chair
Jayne Sadgrove Vice-Chair
Patsy Roseblade Independent Member –
Finance
James Hehir Independent Member-
Legal
Ian Wells Independent Member-
Information Technology
Melu Jehu Independent Member-
Community
Nicola Milligan Independent Member –
Staff
Dilys Jouvenat Independent Member-
Third Sector
Carolyn Donoghue Independent Member -
University
Lynda Thomas Independent Member -
Corporate Business
Cllr Geraint E Hopkins Independent Member-
Local Authority
**----- End of picture text -----**
## **Bankers**
Barclays Bank 93/94 Taff Street Pontypridd Mid Glamorgan CF37 4YH
## **Internal Auditors**
NHS Wales Shared Services Partnership Audit & Assurance Services
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4-5 Charnwood Court, Heol Billingsley, Parc Nantgarw, Cardiff CF15 7QZ
## **External Auditors**
Auditor General for Wales Audit Wales 1 Capital Quarter Tyndall Street Cardiff CF10 4BZ
## **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 157 individual funds as at 31[st] March 2023 (2022-23, 156). 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 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.
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
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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, in 2020-21, the NHS Charities Together Covid Appeal allocated Stage 1 grants to individual NHS charities of which Cwm Taf Morgannwg UHB Charitable Fund received £168,100. Subsequently applications were submitted for further two stages of the grants to support NHS staff, patients and local communities.
In 2022-23 the Stage 1 grant was given final sign off by NHS Charities Together, and recently the Stage 2 and Stage 3 grants have been had approval and are now progressing.
The Charity is registered with HMRC to recover gift aid income and gift aid income reclaimable for 2022-23 is £1.3k.
During the year the Charity paid total grants and support costs of £669k (202122: £403k); 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.
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Research - Research grants were used to enable staff to attend conferences and modification of a website. 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 2023 stand at £2,644k, with £168k from this amount being committed for future expenditure.
## **Movement in Net Assets**
The net assets of the Charitable Funds as at 31[st] March 2023 were £3,761k (2021-22:£4,222k). This comprised of unrestricted funds of £2,644k (202122:£3,085k) and restricted funds of £1,117k (2021-22:£1,137k). Overall net assets decreased by £461k reflecting an excess of expenditure over income. Of this excess, £145k relates to loss on the market value of the investments. 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 from NHS Charities Together.
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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.
The table below demonstrate the various sources of income for the year 202223.
## **STATEMENT OF INCOME FOR THE YEAR ENDED 31 MARCH 2023**
**----- Start of picture text -----**
Unrestricted Restricted 2022-23 2021-22
£000 £000 £000 £000
Donations 110 8 118 148
Legacies 87 0 87 367
Grants 15 24 39 29
Interest and dividends 70 24 94 79
Other trading activities 0 15 15 4
Incoming Resources from
0 0 0 0
Charitable Activities
Total Incoming
282 71 353 627
Resources
**----- End of picture text -----**
## **Donations**
During 2022-23 a total of £118k (2021-22:£148k) was received in the form of donations. A variety of donations were received throughout the year, a few examples of which are listed below:
- A total of £12.8k was donated by one donor to Princess of Wales Hospital Intensive Care and Accident& Emergency Units.
- A total of £5.4k was received for various funds within Royal Glamorgan Hospital
- £5.8k was donated to Ysbyty Cwm Rhondda, Ward 1 by one donor.
- £1k was donated to Neonatal Unit and £2.4k was donated for general purposes, Prince Charles Hospital.
## **Legacies**
During the year, the Charity was a beneficiary of legacies with a total value of £87k (2021-22: £367k).
All legacies, where contact details are available, are acknowledged formally with a letter of thanks to the family.
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## **Grants**
During the year, the Charity received grants totalling £39k (2021-22: £29k). In addition, Stage 2 and Stage 3 NHS Charities Together grant application process commenced during 2021-22 with anticipated receipt in 2023-24 following successful acceptance of the grant award.
## **Investments**
CCLA Investment Management Limited is appointed as Investment Advisors to the Charity.
Total amount invested in the Charities Ethical Investment Fund during the year was £2,100k with a market value of £2,761k. No other investments were held.
The Market Value of the fund at 31[st] March 2023 was £2,761k, showing a cumulative net gain of £661k. However, the market value of funds dropped from £2,906k at the start of the year to £2,761k at the end of year, thus showing an overall loss of £145k as detailed within Note 13 of the Financial Statements.
During the year the Charity received £84k (2021-22: £79k) 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. There was no additional distribution of gains to individual funds during 2022-23.
## **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 2022-23, charitable expenditure on direct charitable activity, including support costs, totalled £669k (2021-22: £403k).
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## **ANALYSIS OF EXPENDITURE FOR THE YEAR ENDED 31 MARCH 2023**
|||**Unrestricted**|**Restricted**|**2022-23**|**2021-22**|
|---|---|---|---|---|---|
|||**£000**|**£000**|**£000**|**£000**|
||Fundraising
trading:
costs of goods sold and
other costs|
0|0|**0**|**0**|
||Charitable Activities|578|91|**669**|**403**|
||**Total Resources**
**Expended**|**578**|**91**|**669**|**403**|
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:
- £12k was spent on setting up the Fruit and Veg stall at Royal Glamorgan Hospital.
- £9.5k was used to purchase two interactive touch screen digital therapy systems for the Dementia Ward at Ysbyty Cwm Cynon.
- £26k was used to purchase a scanner for the Breast-care Unit at Princess of Wales Hospital.
## **Support Costs**
The support costs of administration for 2022-23 were £108k (2021-22: £98k). 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**_
**----- Start of picture text -----**
Chairperson : ____________________ Date : 25/01/2024
Cwm Taf Morgannwg UHB
On behalf of the Trustees
**----- End of picture text -----**
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## **Cwm Taf Morgannwg NHS General Charitable Fund ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2023**
## **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.
13
## **Cwm Taf Morgannwg General Charitable Fund Statement of Financial Activities for the year ended 31 March 2023**
|**Note**
**Incoming resources from generated funds:**
Donations and legacies
3
Charitable activities
Other trading activities
Investments
5
Other - Funds transferred from another NHS body
**Total incoming resources**
**Expenditure on:**
Raising Funds
6
Charitable activities
7
Other
**Total expenditure**
Net gains / (losses) on investments
13
**Net income / (expenditure)**
Transfer between funds
18
**Net movement in funds**
**Reconciliation of Funds**
Total Funds brought forward
19
**Total Funds carried forward**
**Cwm Taf Morgannwg General Charitable Fund Statement of F**
**Note**
**Incoming resources from generated funds:**
Donations and legacies
3
Charitable activities
Other trading activities
Investments
5
Other
**Total incoming resources**
**Expenditure on:**
Raising Funds
6
Charitable activities
7
Other
**Total expenditure**
Net gains / (losses) on investments
13
**Net income / (expenditure)**
Transfer between funds
18
**Net movement in funds**
**Reconciliation of Funds**
Total Funds brought forward
19
**Total Funds carried forward**|**Unrestricted**
**funds**
**£000**
212
0
0
70
**282**
0
578
**578**
(145)
**(441)**
0
**(441)**
3,085
**2,644**
**inancial Activ**
**Unrestricted**
**funds**
**£000**
500
0
0
56
0
**556**
0
315
0
**315**
162
**403**
(203)
**200**
2,885
**3,085**|**Restricted**
**Income**
**funds**
**£000**
32
0
15
24
**71**
0
91
**91**
0
**(20)**
0
**(20)**
1,137
**1,117**
**ities for the year**
**Restricted**
**Income**
**funds**
**£000**
44
0
4
23
0
**71**
0
88
0
**88**
0
**(17)**
203
**186**
951
**1,137**|**Total**
**Funds**
**2022-23**
**£000**
**244**
**0**
**15**
**94**
**0**
**353**
**0**
**669**
**0**
**669**
**(145)**
**(461)**
**0**
**(461)**
**4,222**
**3,761**
**ended 31 Ma**
**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 2022**
14
## **Cwm Taf Morgannwg General Charitable Fund Balance Sheet as at 31 March 2023**
|**Unrestricted**
**funds**
**Note**
**£000**
**Fixed assets:**
Investments
13
1,878
**Total fixed assets**
**1,878**
**Current assets:**
Debtors
14
59
Cash and cash equivalents
15
812
**Total current assets**
**871**
**Liabilities:**
Creditors: Amounts falling due within one year
16
(105)
**Net current assets / (liabilities)**
**766**
**Total assets less current liabilities**
**2,644**
Creditors: Amounts falling due after more than
16
0
one year
**Total net assets / (liabilities)**
**2,644**
**The funds of the charity:**
Endowment Funds
19
0
Restricted income funds
19
0
Unrestricted income funds
19
2,644
**Total funds**
**2,644**|**Restricted**
**Income**
**funds**
**£000**
883
**883**
9
270
**279**
(45)
**234**
**1,117**
0
**1,117**
0
1,117
0
**1,117**|**Total**
**31 March**
**2023**
**£000**
**2,761**
**2,761**
**68**
**1,082**
**1,150**
**(150)**
**1,000**
**3,761**
**0**
**3,761**
**0**
**1,117**
**2,644**
**3,761**|**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**|
|---|---|---|---|
The notes on pages 17 to 29 form part of these accounts
Signed : ....................................................................................
Jonathan Morgan Name : ..............................................................(Chair of Trustees) 25/01/2024 Date : ........................................................................................
15
## **Cwm Taf Morgannwg General Charitable Fund Statement of Cash Flows for the year ending 31 March 2023**
|**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**
**2022-23**
**£000**
**(424)**
94
0
0
**94**
**(330)**
1,412
**1,082**|**Total**
**Funds**
**2021-22**
**£000**
**149**
79
0
(600)
**(521)**
**(372)**
1,784
**1,412**|
|---|---|---|
16
## **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.
17
## **(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:
- ●A restricted fund or
- ●An endowment fund.
Restricted funds are those where the donor has provided for the donation to be spent in furtherance of a specified charitable purpose. The Charity’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, income from other trading 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.
Income from other trading activities, relates to income from sponsorships which cannot be considered pure donations.
## **(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:
- ●Confirmation has been received from the representatives of the estate(s) that probate has been granted
- ●The executors have established that there are sufficient assets in the estate to pay the legacy and
- ●All conditions attached to the legacy have been fulfilled or are within the charity’s control.
18
## **(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:
- ●There is a present legal or constructive obligation resulting from a past event
- ●It is more likely than not that a transfer of benefits (usually a cash payment) will be required in settlement
- ●The amount of the obligation can be measured or estimated reliably.
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:
- ●We have communicated our intention to award a grant to a recipient who then has a reasonable expectation that they will receive a grant
- ●We have made a public announcement about a commitment which is specific enough for the recipient to have a reasonable expectation that they will receive a grant
- ●There is an established pattern of practice which indicates to the recipient that we will honour our commitment.
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.
19
## **(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).
20
## **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 £592k (2021-22 £287k) to the Cwm Taf Morgannwg University Health Board.
**----- Start of picture text -----**
Name Details Related Party Interests
Mr Greg Dix Director of Nursing, Trustee – Royal College of Nursing
Midwifery & Patient Care Foundation
Sally May Director of Finance Cousin is Regional Sales Manager South
West Arthrex Ltd
Cousin is Director of DECIPHER;
Professor in Social Interventions
and Health, Cardiff University Ongoing
Salaried position
Dr Kelechi Nnoaham Director of Public Health Honorary professorship Cardiff University.
Spouse is employee of Cwm Taf
Morgannwg University Health Board.
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.
**----- End of picture text -----**
The total value of related party transcations in 2022-23 were as follows:
|**Related Party**|**Expenditure**|**Income**||**Creditors**||**Debtors**||
|---|---|---|---|---|---|---|---|
||£000|£000||£000||£000||
|Arthrex Ltd.|0||1||0||0|
|Cardiff University|2||2||0||0|
|Royal College of Nursing Foundation|0||0||0||0|
|University of the West of England|3||0||0||0|
|Rhondda Cynon Taf Council|5||0||1||0|
## **3. Income from donations and legacies**
|Donations
Legacies
Grants|**Unrestricted**
**funds**
**£000**
110
87
15
**212**|**Restricted**
**Income**
**funds**
**£000**
8
0
24
**32**|**Total**
**2022-23**
**£000**
**118**
**87**
**39**
**244**|**Total**
**2021-22**
**£000**
**148**
**367**
**29**
**544**|
|---|---|---|---|---|
## **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**
63
7
**70**|**Restricted**
**Income**
**funds**
**£000**
21
3
**24**|**Total**
**2022-23**
**£000**
**84**
**10**
**94**|**Total**
**2021-22**
**£000**
**79**
**0**
**79**|
|---|---|---|---|---|
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**
**2022-23**
**£000**
**0**
**0**
**0**
**0**
**0**|**Total**
**2021-22**
**£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**
22
128
12
257
141
2
**562**|**Support**
**costs**
**£000**
4
25
2
49
27
0
**108**|**Total**
**2022-23**
**£000**
**26**
**153**
**14**
**306**
**168**
**2**
**669**|**Total**
**2021-22**
**£000**
**13**
**68**
**0**
**218**
**101**
**3**
**403**|
|---|---|---|---|---|
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**
141
9
**150**|**Non-current**
**liabilities**
**£000**
0
0
**0**|**Total**
**31 March**
**2022-23**
**£000**
**141**
**9**
**150**|**Total**
**31 March**
**2021-22**
**£000**
**122**
**19**
**141**|
|---|---|---|---|---|
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
82
**82**|**Charitable**
**activities**
**£000**
30
0
0
**30**
77
0
1
**108**
**Restricted**
**Income**
**funds**
**£000**
0
26
**26**|**Total**
**2022-23**
**£000**
**30**
**0**
**0**
**30**
**77**
**0**
**1**
**108**
**Endowment**
**funds**
**£000**
0
0
**0**|**Total**
**2021-22**
**£000**
25
0
0
**25**
72
0
1
**98**
**Total**
**Funds**
**2022-23**
**£000**
**0**
**108**
**108**|**Basis**
Average fund balance
Average fund balance
**Total**
**Funds**
**2021-22**
£000
0
98
**98**|
|---|---|---|---|---|
## **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 £76,742 (2022: £72,368)
23
## **12. Auditors remuneration**
Auditors’ remuneration of £28,750 relates to Audit Wales’ audit of the statutory annual report and accounts for 2022-23.
In addition to £25,000 charged in 2021-22 for audit of statutory annual report and accounts, a further fee of £1,832 was charged in 2022-23 which related to audit of 2021-22 statutory accounts. Therefore, auditor's remuneration for 2021-22 amounted to a total of £26,832.
## **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 2023**|Total
2022-23
£000
2,906
0
0
(145)
**2,761**|Total
2021-22
£000
**2,144**
**600**
**0**
**162**
2,906|
|---|---|---|
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 £2.1m. No additional funds were invested during the financial year 2022-23 and the Market Value of the fund at 31[st] March 2023 was £2.761m., showing an overall cumulative net gain of £0.661m. However, as noted above, there was a reduction in Market Value of £0.145m from the start of the financial year. In 2022/23 £0.497m was distributed to funds for use in line with the investment strategy, meaning unrealised gains of £0.164m remain undistributed to particular funds.
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
24
## **14. Analysis of current debtors**
|**Debtors under 1 year**
Accrued income
Prepayments
Other debtors|**Total**
**31 March**
**2023**
**£000**
23
33
12
**68**|**Total**
**31 March**
**2022**
**£000**
(Restated)
**28**
**7**
**10**|
|---|---|---|
|||**45**|
## **15. Analysis of cash and cash equivalents**
|Cash at bank
Notice deposits (less than 3 months)|**Total**
**31 March**
**2023**
**£000**
**1,081**
**0**
**1,081**|**Total**
**31 March**
**2022**
**£000**
**1,412**
**0**
**1,412**|
|---|---|---|
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**
**2023**
**£000**
32
1
117
**150**
**0**
**0**
**0**
**0**
**150**|**Total**
**31 March**
**2022**
**£000**
**38**
**1**
**102**
**141**
**0**
**0**
**0**
**0**
**141**|
|---|---|---|
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**
**2022-23**
**£000**
(461)
0
145
(94)
0
0
(23)
9
**(424)**|**Total**
**2021-22**
**£000**
**386**
**0**
**(162)**
**(79)**
0
0
**(15)**
**19**
**149**|
|---|---|---|
## **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.
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.
There were no further distribution of unrealised gains in 2022/23 and at the end of the financial year the undistrubuted realised gains was £164k.
## **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**
Edward Rees Davies
**C**
GP Vocational Training Scheme (VTS)
**D**
Heart Failure
**E**
Medical Unit Wards Fund
**F**
Rheumatology Research
**G**
Maxillo Facial Unit
**H**
Restricted Colorectal Res & Ed Fund Coloplast
**I**
Radiology Scanner Fund
**J**
X-Ray
**K**
Rosslyn Chidgey
**L**
Urology Research
**M**
Paediatric Wards
**N**
Ward D4 (Rhondda Medical Unit)
**Other restriced funds (34)**|**Balance**
**1 April**
**2022**
**£000**
**355**
**278**
**57**
**57**
**47**
**34**
**26**
**33**
**27**
**19**
**17**
**16**
**16**
**12**
**143**
**1,137**|**Income**
**£000**
9
6
18
1
1
1
1
3
1
0
0
0
0
1
29
**71**|**Expenditure**
**£000**
(9)
(5)
(9)
(4)
(3)
(1)
(1)
(12)
(8)
0
0
0
0
(1)
(38)
**(91)**|**Transfers**
**£000**
0
0
0
0
0
0
0
1
(1)
0
0
0
0
0
0
**0**|**Gains**
**and**
**losses**
**£000**
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
**0**|**Balance**
**31 March**
**2023**
**£000**
**355**
**279**
**66**
**54**
**45**
**34**
**26**
**25**
**19**
**19**
**17**
**16**
**16**
**12**
**134**
**1,117**|
|---|---|---|---|---|---|---|
The objects of the most significant 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.
## **c. Analysis of unrestricted and most significant designated fund movements**
|**A**
POW Diabetic Adults
**B**
YCC & MHP WARDS/DEPTS FUND
**C**
Y Bwthyn Newydd
**D**
POW General Purpose
**E**
PCH General Purposes Fund
**F**
Maesteg General Purposes
**G**
Pathology Fund
**H**
General Purposes Fund
**I**
Covid-19 - Coronavirus
**J**
Palliative Hospital Fund
**K**
Cardiac/Coronary Care Fund
**L**
Intensive Care Unit Fund
**M**
RGH General Purpose Fund
**N**
Enablement Fund
**O**
Diabetic Research & Development
**Other unrestriced funds (93)**|**Balance**
**1 April**
**2022**
**£000**
**248**
**257**
**208**
**164**
**165**
**131**
**129**
**249**
**199**
**53**
**60**
**58**
**52**
**50**
**46**
**1,016**
**3,085**|**Income**
**£000**
0
9
50
68
0
0
0
75
0
5
2
1
5
0
0
67
**282**|**Expenditure**
**£000**
(1)
(31)
(57)
(50)
0
0
(3)
(167)
(136)
0
0
0
(1)
0
(2)
(130)
**(578)**|**Transfers**
**£000**
0
(5)
0
0
0
0
0
(42)
42
5
0
0
0
0
0
0
**0**|**Gains**
**and**
**losses**
**£000**
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
(145)
**(145)**|**Balance**
**31 March**
**2023**
**£000**
**247**
**230**
**201**
**182**
**165**
**131**
**126**
**115**
**105**
**63**
**62**
**59**
**56**
**50**
**44**
**808**
**2,644**|
|---|---|---|---|---|---|---|
The POW Diabetic Adults is designated for the welfare and benefit of patients and staff of the Princess of Wales Hospital Diabetic Unit.
The Y Bwthyn Newydd 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 £164k 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.
27
## **20. Commitments**
As at 31/03/23 the Charity has committed the following amounts against its funds:
|**Restricted funds:**
Medical Unit Wards - RGH
Seren Ward
**Unrestricted and designated funds:**
POW Breast Cancer Fund - YB40
Y Bwthyn Newydd - YB41
POW Diabetic Adults - YF46
East OD & T Fund - YH49
Neath Port Talbot Mastectomy Fund - YK51
Medical Unit Fund
YCC & MHP Wards/Departments Fund
PCH General Purposes
General Purposes - LHB wide
Covid-19 Coronavirus
**Total commitments**|£000
3
1
**4**
4
0
14
1
12
2
10
1
71
53
**168**
**172**|
|---|---|
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**
These financial statements were authorised for issue by the Chief Executive and Accountable Officer on 25th January 2024 and are expected to be certified by the Auditor General for Wales on 26th January 2024. There were no significant events after the reporting period.
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:
- Select suitable accounting policies and then apply them consistently;
- Observe the methods and principles of the Charities SORP;
- Make judgments and estimates that are reasonable and prudent;
- State whether applicable accounting standards have been followed, subject to any departures disclosed and explained in the
- financial statements; and
- Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will
- continue in operation.
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:
Trustee ………………………………………………………………………………………………………………. Dated…25 January 2024…
Jonathan Morgan Chair
Financial Trustee………………………………………………………………………... Dated…25 January 2024…
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 2023 under the Charities Act 2011. The financial statements 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:
- give a true and fair view of the state of affairs of the charity as at 31 March 2023 and of its incoming resources and application of resources for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the Charities Act 2011.
## **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.
My staff and I are 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:
- I have not received all the information and explanations I require for my audit;
- sufficient accounting records have not been kept, or returns adequate for my audit have not been received from branches not visited by my team;
- the financial statements are not in agreement with the accounting records and returns; or
- the information given in the financial statements is inconsistent in any material respect with the trustee’s annual report
## **Responsibilities**
## **Responsibilities of the trustee for the financial statements**
As explained more fully in the statement of trustee’s responsibilities set out on page 29, the trustee is responsible for:
- maintaining sufficient accounting records;
- the preparation of the financial statements in accordance with the applicable financial reporting framework and for being satisfied that they give a true and fair view;
- internal controls as the trustee determines is necessary to enable the preparation of financial statements to be 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 the trustees anticipate that the services provided by the charity will not continue to be provided in the future.
## **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.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. I design procedures in line with my responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud.
My procedures included the following:
- Enquiring of management, the Cwm Taf Morgannwg University Local Health Board Charity’s head of internal audit and those charged with governance, including obtaining and reviewing supporting documentation relating to Cwm Taf Morgannwg University Local Health Board Charity’s policies and procedures concerned with:
- identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance;
- detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; and
- the internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations.
- Considering as an audit team how and where fraud might occur in the financial statements and any potential indicators of fraud. As part of this discussion, I identified potential for fraud in respect of the posting of unusual journals; and
- Obtaining an understanding of Cwm Taf Morgannwg University Local Health Board Charity’s framework of authority as well as other legal and regulatory frameworks that the Cwm Taf Morgannwg University Local Health Board Charity operates in, focusing on those laws and regulations that had a direct effect on the financial statements or that had a fundamental effect on the operations of Cwm Taf Morgannwg University Local Health Board Charity.
- Obtaining an understanding of related party relationships.
In addition to the above, my procedures to respond to identified risks included the following:
- reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with relevant laws and regulations discussed above;
- enquiring of management, those charged with governance and legal advisors about actual and potential litigation and claims;
- reading minutes of meetings of those charged with governance; and
- in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.
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 Auditor General for Wales 29 January 2024**
**1 Capital Quarter Tyndall Street Cardiff CF10 4BZ**