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2022-03-31-accounts

Trustee's Annual Report for Harrogate Hospital and Community Charity, supported by Friends of Harrogate Hospital for the year ended 31 March 2022

Contents

Foreword 3
Reference and Administration Details 3
Trustee Arrangements 3
Principal Office 4
Principal Professional Advisors 4
Structure, Governance and Management 4
Risk Management 5
Partnership Working 6
Objectives and Activities 6
Reserves Policy 6
Financial Review 7
Achievements and Performance 7
Plans for Future Periods 7
Review of Investment Portfolio 8
Statement of Trustee's Responsibilities in respect of the Trustee's Annual Report and
Financial Statements 10
External Auditor's Report 11-14
Statement of Financial Activities 15-16
Statement of Financial Position 17-18
Statement of Cash Flows 19
Notes to the Accounts 20-27

Trustee's Annual Report for Harrogate Hospital and Community Charity, supported by Friends of Harrogate Hospital for the year ended 31 March 2022

Foreword

The Corporate Trustee present their Annual Report together with the Audited Accounts of the Charity for the year ended 31 March 2022.

The Charity’s annual report and accounts for the year ended 31 March 2022 have been prepared by the Corporate Trustee in accordance with the Charities Act 2011 and the Charities (Accounts & Reports) Regulations 2008. The Charity’s report and accounts include all the separately established funds for which the Harrogate and District NHS Foundation Trust is the beneficiary.

Reference and Administrative Details

The main charity Harrogate Hospital and Community Charity, supported by Friends of Harrogate Hospital, registered Charity Number 1050008, was entered on the Central Register of Charities on 20 October 1995. The charity is constituted of 180 individual funds as at 31 March 2022 (189 funds as at 31 March 2021) and the notes to the accounts distinguish the types of fund held and disclose separately all material funds.

Charitable funds received by the charity are accepted and held and administered as funds held on trust for purposes relating to the National Health Service in accordance with the National Health Service Act 1977 and the National Health Service and Community Care Act 1990 and these funds are held on trust by the Corporate Trustee.

Trustee Arrangements

Harrogate and District NHS Foundation Trust is the Corporate Trustee of the Charitable Funds governed by the law applicable to Trusts, principally the Trustee Act 2000 and the Charities Act 2011.

The NHS Foundation Trust’s Board of Directors devolved responsibility for the on-going management of funds to the Charitable Funds Committee which administers the funds on behalf of the Corporate Trustee. The Committee meets quarterly unless items of an important nature intervene. The Committee members consider the strategy and financial management of the funds, discuss major policy issues and consider reports. The minutes of the Committee meetings are reported to the Board of Directors, acting as a Corporate Trustee.

Harrogate and District NHS Foundation Trust is the sole corporate trustee of the Charity. The Directors of the NHS Foundation Trust Board of Directors who served during the financial year were as follows:

Name Position
Mrs A Schofield Chairman
Mr S Russell Chief Executive (seconded to NHS England from 28/02/2022)
Mr J Coulter Finance Director / Deputy Chief Executive to 27/02/2022, Acting Chief
Executive (commenced 28/02/2022), Chief Executive (commenced
11/05/2023)
Mrs J Foster Chief Nurse (Left 31/03/2021)
Mrs E Nunez Chief Nurse (commenced 01/11/2021)
Dr J Andrews Medical Director
Mr J McKie Acting Director of Finance (commenced 28/02/2022), Director of
Finance (commenced 19/07/2023)
Mr M Graham Director of Strategy
Dr M Shepherd Acting Chief Operating Officer (01/03/2021 - 30/04/2021)
Mr R Nightingale Chief Operating Officer (commenced 05/04/2021)
Mrs A Wilkinson Director of Workforce and Organisational Development
Mr R Stiff Non-Executive Director
Mr A Papworth Non-Executive Director
Mrs M Taylor Non-Executive Director
Mrs S Armstrong Non-Executive Director
Ms L Robson Non-Executive Director
Mr J Cross Non-Executive Director
Mr W Sampson (OBE) Non-Executive Director

Page 3

Trustee's Annual Report for Harrogate Hospital and Community Charity, supported by Friends of Harrogate Hospital for the year ended 31 March 2022 (continued)

The names of those people who served as agents for the Corporate Trustee (as members of the Charitable Funds Committee), as permitted under regulation 19 of the NHS Trusts (Membership and Procedures) Regulations 1990 were as follows:

Mrs A Schofield Chairman Mr J Coulter Chief Executive Mr M Graham Director of Strategy Mr R Nightingale Chief Operating Officer Mr J McKie Director of Finance Ms L Robson Non-Executive Director Mrs S Armstrong Non-Executive Director Mr J Cross Non-Executive Director

Representatives from the Trust’s investment fund managers, Brewin Dolphin, also attend Charitable Funds Committee meetings on a six-monthly basis.

Principal Office

The Principal Office for the Charity is: Finance Department Trust HQ Harrogate and District NHS Foundation Trust Harrogate District Hospital Lancaster Park Road Harrogate HG2 7UG

Principal Professional Advisers: Bankers Investment Fund Managers Government Banking Service Brewin Dolphin Limited Premier Place 10 Wellington Place 2 1/2 Devonshire Square Leeds London LS1 4AN EC2M 4BA

Auditors Solicitors Saffery LLP Mitre House North Park Road Harrogate North Yorkshire HG1 5RX

The charity has not required the services of a solicitor during the financial year.

Structure, Governance and Management

Harrogate and District NHS Foundation Trust registered its charitable funds under an “Umbrella Charity” arrangement whereby the charities administered are treated as special trusts of the Umbrella Charity. The nature of its governing document is a trust deed (dated 20 October 1995), and the charity is constituted as Trustees incorporated as a body. The Umbrella Charity is liable for registration whilst the individual funds retain their own identity for all other purposes. Subsequent donations and gifts received by the charity that are attributable to the original funds are added to those fund balances within the existing charity.

Page 4

Trustee's Annual Report for Harrogate Hospital and Community Charity, supported by Friends of Harrogate Hospital for the year ended 31 March 2022 (continued)

The Corporate Trustee fulfils its legal duty by ensuring that funds are spent in accordance with the objects of each fund, and by designating funds the Trustee respects the wishes of our generous donors to benefit patient care and advance the good health and welfare of patients, carers and staff. Where funds are received which have specific restrictions set by the donor a restricted fund has been established.

The charitable funds available for spending are allocated to Directorates within the NHS Foundation Trust’s management structure. Each allocation is managed by use of a designated fund and manager within the general unrestricted fund. Designated fund managers can approve expenditure up to £5,000, expenditure between £5,000 and £150,000 also requires a member of the Charitable Funds Committee to countersign and expenditure above £150,000 must be approved by the Board of Directors of the Harrogate and District NHS Foundation Trust. In addition all expenditure above £500 is reviewed and ratified retrospectively on a quarterly basis by the Charitable Funds Committee.

Non-Executive Directors on the Board of Directors of the NHS Foundation Trust are appointed by the Board of Governors, Executive Directors of the Board of Directors of the NHS Foundation Trust are subject to appointment by the NHS Foundation Trust Board. The Board of Directors of the NHS Foundation Trust and the Charitable Funds Committee are not individual trustees under Charity Law but act as agents on behalf of the Corporate Trustee.

Directors on the NHS Foundation Trust's Board of Directors undertake induction training when newly appointed, this training includes information in respect of Trustee responsibilities.

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

The accounting records and the day-to-day administration of the funds are dealt with by the Finance Department of Harrogate and District NHS Foundation Trust located at Harrogate District Hospital, Lancaster Park Road, Harrogate, HG2 7UG.

Risk Management

The major risks to which the charity is exposed have been considered, with the most significant risk identified being the possible losses from a fall in value of investments, especially equities. The Charitable Funds Committee has mitigated this risk by not investing one hundred per cent in equities, but rather taking the view that so far as is reasonable the investments should be made to mitigate undue risk to the real value of the capital and income of the portfolio.

Expenditure is closely monitored; no fund manager is able to expend funds, without the request first being checked by the Finance Department, to ensure funds are available.

Income is monitored to check whether the levels of income are as expected, and if not the spending plans are amended accordingly.

Page 5

Trustee's Annual Report for Harrogate Hospital and Community Charity, supported by Friends of Harrogate Hospital for the year ended

31 March 2022 (continued)

Partnership Working

Harrogate and District NHS Foundation Trust is the main beneficiary of the charity and is a related party by virtue of being Corporate Trustee of the charity. By working in partnership with the Trust, the charitable funds are used to best effect. When deciding upon the most beneficial way to use charitable funds, the Corporate Trustee has regard to the main activities, objectives, strategies and plans of the Trust.

Harrogate and District NHS Foundation Trust remains indebted to the work of the volunteers of Friends of Harrogate Hospital, who raise thousands of pounds of funds each year for Harrogate District Hospital. These funds form part of the Charitable fund position overall, and are included within these accounts.

Objectives and Activities

The Umbrella Charity has NHS wide objectives as follows:

“The Trustee shall hold the trust fund upon trust to apply the income, and at their discretion, so far as may be permissible, the capital, for any charitable purpose or purposes relating to the National Health Service” (hereinafter referred to as “the objects”).

The Coporate Trustee conducts its activities with regard to the Charity Commission guidance on Public Benefit in section 4 of the Charities Act 2011.

The Corporate Trustee had determined the following strategic aims for the application of income:

During the year, the funds continued to support a wide range of charitable and health related activities benefiting both patients and staff. In general they are used to purchase the very varied additional equipment and services that the NHS is unable to provide. For example charitable funds were used to purchase much needed medical equipment (see page 7).

The ward charitable funds receive many donations specifically given to thank the nursing staff and these are used for charitable activities that will benefit staff. The charitable funds also enable consultants and other medical staff to attend courses, not funded by the NHS, which will update them on the new ideas and modern techniques in their specialties.

The General Fund receives donations and legacies that can be used for any charitable purpose relating to the NHS. This flexibility has been used to fund the Staff Long Service Awards and to support training of staff members.

Reserves Policy

It is the policy of this charity to avoid building up reserves. Health Service bodies, in their capacity as charity trustees, have a duty to apply the income for the purposes for which they were given. Income can only be accumulated when the charity’s governing document gives them power to accumulate income. A failure to consider the matter and simply allow the income to accumulate without good reason is a breach of trust. As the charity has no such powers at the present time the policy is to apply funds as and when they become available. Therefore the charity does not have a target reserves figure.

Actual closing reserves have increased by £349,000 during the year, this is after an unrealised and realised Gain of £17,000 on investments and a net inflow of funds of £332,000. The value of the reserves can and will fluctuate over financial year ends.

Within the Charity the general fund has a material deficit of £524k as a result of running costs of the Charity historically charged to the general fund.

Page 6

Trustee's Annual Report for Harrogate Hospital and Community Charity, supported by Friends of Harrogate Hospital for the year ended 31 March 2022 (continued)

Financial review

The net assets of the Charitable Funds as at 31 March 2022 were £2,535,000 (2021: £2,186,000). Overall net assets increased by £349,000 with a realised and unrealised gain on investments of £17,000 plus an excess of income over expenditure £332,000.

The charity continues to rely on donations and legacies as the main sources of income. Total incoming resources from donations and legacies decreased by £37,000 when compared to the previous financial year.

Of the total expenditure of £663,000 (2021: £775,000), charitable expenditure on direct charitable activity was £651,000 (2021: £764,000) across a range of programmes.

Achievements and performance

Purchase of new equipment

The total spend on new equipment of £177,000 (2021: £145,000) represents a vital and valuable contribution to enhancing the provision of clinical care. Purchases range from small items of equipment at a few hundred pounds each through to Playground Refurbishment (£41,566), Cardiovascular Ultrasound Equipment (£88,078), and equipment used to stabilise head injuries as a result of trauma (£6,002).

Staff Training

Staff training expenditure of £25,000 (2021: £22,000) was used to enable consultants and other medical staff to attend courses, not funded by the NHS, which update them on the new ideas and modern techniques in their specialties. This was impacted by Covid 19 restriction this financial year.

Staff welfare and amenities

Staff welfare and amenities expenditure of £102,000 (2021: £239,000) was used by the charity to finance staff long service awards and social activities. The staff shop was opened in 2020/21 with donations mainly from Supermarkets and Local business donating food items for Staff due to the Pandemic shortages extra.

Patient welfare and amenities

The patient welfare and amenities expenditure of £174,000 (2021: £194,000) included the purchase of fixtures and fittings and patient information leaflets. This is expenditure which flows through the appropriate designated funds.

Charitable Expenditure Policy

The charity relies on the Harrogate and District NHS Foundation Trust to identify the appropriateness of funding requests in order to keep transaction costs to a minimum and to simplify the approval process.

Plans for future periods

The reconfiguration of services and the plans for redesigning patient care to meet the needs of the future will influence the priorities for spending charitable funds.

Income accruing from the investment of Endowment Funds can only be applied for the specific purposes attached to the permanent endowment. The income can be used for purchasing medical equipment or carrying out medical research (excluding transplant or vivisection work).

Such items of medical equipment are included in Harrogate and District NHS Foundation Trust's annual capital programme and subjected to the same tests of value for money and a proper business case, as applies to all other capital expenditure.

Page 7

Trustee's Annual Report for Harrogate Hospital and Community Charity, supported by Friends of Harrogate Hospital for the year ended 31 March 2022 (continued)

Fundraising standards

Harrogate and District NHS Foundation Trust is the beneficiary of the Charity. The Trust employs a fundraising team, the key objectives of the team include establishing and maintaining fundraising procedures, charity branding and a fund raising strategy for the Charity. The overall objectives are to generate sufficient income and capital growth to enable the Charity to carry out these purposes consistently, year on year.

The Charity has a Charity Funds Committee and part of the remit of this committee is to focus on fundraising matters prior to approval by the Corporate Trustee. The committee incorporates members of the fundraising team and members of the Corporate Trustee.

The Charity has policies in place to manage the correct management of charitable funds and activities, including but not limited to supporting individuals in fund raising activities and protecting vulnerable in the course of such activities.

The Charity is regulated by the fundraising regulator. The Charity has not received any complaints during the year.

Review of Investment Portfolio

The investment portfolio of Harrogate and District NHS Trust Foundation Trust is managed in Leeds by Brewin Dolphin on a discretionary basis within the constraints of an Ethical Investment Policy approved by the Corporate Trustee.

It is the practice that the investment advisers attend regular meetings of the Charitable Funds Committee. Detailed written reports are produced on a quarterly basis which value the portfolio and record its respective performance statistics. An integral part of the regular meetings is detailed discussion on the content of the report with particular reference to the performance aspect.

Brewin Dolphin is remunerated by an investment management fee of 0.6% per annum on the first £1million and 0.5% on the balance. The fee is invoiced quarterly on the funds under management at the end of the relevant quarter. VAT is charged in addition, but there are no commission charges levied.

As at 31 March 2022, the investment portfolio managed by Brewin Dolphin was valued at £1,830,218 excluding income and accrued interest. The portfolio produces an annual estimated gross income of £43,613 which is equivalent to a gross yield of 2.36%.

Over the 12 month period to 31 March 2022 UK bond and equity markets diverged heavily in terms of performance. The FTSE Government All Stocks index made a return of -5.08% while in equity markets the FTSE All Share index returned +13.03%. Global equities again performed better over the 12-month period with the FT World ex UK Index returning +14.87%. Over the year the portfolio made a total return of +3.23%. This compares to a return in the agreed benchmark of +9.55%.

At the year-end, 13.7% of assets were invested in fixed interest securities. The portfolio had 72.8% of assets invested in equities, with 23.7% allocated to UK equities and 49.1% to overseas equities. The majority of the UK equity exposure is made up of direct equity holdings whereas the overseas exposure is gained via unit trusts, direct US and European equities, as well as equities outside the US and Europe. The remaining assets were broken down into 9.9% in absolute return funds, 2.5% in Infrastructure and 1.1% held in cash.

The direct equity portion of the portfolio remains subject to an ethical constraints with the shares of companies predominantly involved with tobacco, armaments and where there is a proven poor human rights track record to be excluded.

The structure of the portfolio is in accordance with the Policy Statement which was agreed by the Trustee in November 2014 in accordance with the requirements of the Trustee Act 2000.

Page 8

Trustee's Annual Report for Harrogate Hospital and Community Charity, supported by Friends of Harrogate Hospital for the year ended 31 March 2022 (continued)

Impact of CoVid-19

Looking forward into 2022/23, there will be a continued impact on the Charity as a result of CoVid-19. One impact is the impact on the valuation of the fund which is sensitive to the investment values held and the performance of these investments. A very positive impact however, is the increased profile of the NHS and the increased level of donations to NHS Charities, as the population show support for the NHS. We are seeing the quantity of Gifts in Kind reduce however we continue to actively manage this in accordance with best practice. We will be seeking to manage the risk of investment performance and returns and maximise the opportunity from the increased awareness and support for the NHS at the moment.

Going Concern

The financial statements have been prepared on a going concern basis which the Trustee consider to be appropriate for the following reasons. The business model of the charity is such that its charitable activities are limited to those which it has sufficient funds to support from the excess of funding received over the costs of administering the charity. The charity therefore has no specific commitments and no committed costs beyond its fixed costs of operation which are detailed in note 6.

The Trustee have reviewed the cash flow forecasts for a period of 12 months from the date of approval of these financial statements which indicate that the charity will have sufficient funds to meet its liabilities as they fall due for that period. The Trustee have also considered the implications of CoVid-19 on these cash flow forecasts and consider that as a result of its operating model explained above, even if no further funding is received in the 12 month period, the charity has sufficient cash reserves to pay all committed costs. Consequently, the Trustee are confident that the charity will have sufficient funds to continue to meet its liabilities as they fall due for at least 12 months from the date of approval of the financial statements.

A Big Thank You

On behalf of the staff and patients who have benefited from improved services due to donations and legacies, the Corporate Trustee would like to thank all of those who have made charitable donations.

Approved on behalf of the Corporate Trustee.

Chief Executive - Mr Jonathan Coulter ............................................................. Date: 28th September 2023

Director of Finance - Mr Jordan McKie ………................................................. Date: 28th September 2023

Page 9

Trustee's Annual Report for Harrogate Hospital and Community Charity, supported by Friends of Harrogate Hospital for the year ended 31 March 2022 (continued)

Statement of Trustee's responsibilities in respect of the Trustee's annual report and the financial statements

Under the trust deed of the charity and charity law, the Trustee is responsible for preparing the Trustee's Annual Report and the Accounts in accordance with applicable law and regulations. The trustees have elected to prepare the financial statements in accordance with UK Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland.

The law applicable to Charities in England and Wales requires the trustees to prepare financial statements 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, generally accepted accounting practice entails that the trustees:

The Trustee are required to act in accordance with the trust deed of the charity, within the framework of trust law. They are responsible for keeping proper accounting records, sufficient to disclose at any time, with reasonable accuracy, the financial position of the charity at that time, and to enable the Trustee to ensure that, where any statements of accounts are prepared by them under section 132(1) of the Charities Act 2011, those statements of accounts comply with the requirements of regulations under that provision. They are responsible for such internal control as they determine is necessary to enable the preparation of the financial statements that are free from material misstatement, whether due to fraud or error, and have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the charity and to prevent and detect fraud and other irregularities.

The Trustee are responsible for the maintenance and integrity of the financial and other information included on the charity's website. Legislation in the UK governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

By Order of the Trustee Signed:

Chief Executive - Mr Jonathan Coulter ............................................................... Date: 28th September 2023

Director of Finance - Mr Jordan McKie ………………….............................. Date: 28th September 2023

Page 10

Trustee's Annual Report for Harrogate Hospital and Community Charity, supported by Friends of Harrogate Hospital

Independent Auditor Report to the Corporate Trustee of Harrogate Hospital and Community Charity, supported by Friends of Harrogate Hospital

Opinion

We have audited the financial statements of the Harrogate Hospital and Community Charity, supported by Friends of Harrogate Hospital for the year ended 31 March 2022 which comprise the Statement of Financial Activities, the Statement of Financial Position, Cash flow Statement and notes to the financial statements, including 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 our opinion the financial statements:

· give a true and fair view of the state of the charity’s affairs as at 31 March 2022 and of its incoming resources and application of resources for the year then ended;

· have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

· have been prepared in accordance with the requirements of the Charities Act 2011.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

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

Page 11

Trustee's Annual Report for Harrogate Hospital and Community Charity, supported by Friends of Harrogate Hospital

Independent Auditor Report to the Corporate Trustee of Harrogate Hospital and Community Charity, supported by Friends of Harrogate Hospital (cont)

Other information

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

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

We have nothing to report in this regard.

Matters on which we are required to report by exception

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

· the information given in the Trustees’ Annual Report is inconsistent in any material respect with the financial statements; or

· the charity has not kept sufficient accounting records; or

· the financial statements are not in agreement with the accounting records and returns; or

· we have not received all the information and explanations we require for our audit.

Responsibilities of trustees

As explained more fully in the Trustee's Responsibilities Statement set out on page 10, the trustee is responsible for the preparation of the financial statements and 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 the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.

Auditors’ responsibilities for the audit of the financial statements

We have been appointed as auditors under the Charities Act 2011 and report in accordance with regulations made under that Act.

Page 12

Trustee's Annual Report for Harrogate Hospital and Community Charity, supported by Friends of Harrogate Hospital

Independent Auditor Report to the Corporate Trustee of Harrogate Hospital and Community Charity, supported by Friends of Harrogate Hospital (cont)

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our 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. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud are detailed below.

Identifying and assessing risks related to irregularities:

We assessed the susceptibility of the charity’s financial statements to material misstatement and how fraud might occur, including through discussions with the trustees, discussions within our audit team planning meeting, updating our record of internal controls and ensuring these controls operated as intended. We evaluated possible incentives and opportunities for fraudulent manipulation of the financial statements. We identified laws and regulations that are of significance in the context of the charity by discussions with trustees and updating our understanding of the sector in which the charity operates.

Laws and regulations of direct significance in the context of the charity include the Charities Act 2011, the Charities (Accounts and Reports) Regulations 2008 and guidance issued by the Charity Commission for England and Wales.

Audit response to risks identified:

We considered the extent of compliance with these laws and regulations as part of our audit procedures on the related financial statement items including a review of financial statement disclosures. We reviewed the charity’s records of breaches of laws and regulations, minutes of meetings and correspondence with relevant authorities to identify potential material misstatements arising. We discussed the charity’s policies and procedures for compliance with laws and regulations with members of management responsible for compliance.

During the planning meeting with the audit team, the engagement partner drew attention to the key areas which might involve non-compliance with laws and regulations or fraud. We enquired of management whether they were aware of any instances of non-compliance with laws and regulations or knowledge of any actual, suspected or alleged fraud. We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and identifying any significant transactions that were unusual or outside the normal course of business. We assessed whether judgements made in making accounting estimates gave rise to a possible indication of management bias. At the completion stage of the audit, the engagement partner’s review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud.

Page 13

Trustee's Annual Report for Harrogate Hospital and Community Charity, supported by Friends of Harrogate Hospital

Independent Auditor Report to the Corporate Trustee of Harrogate Hospital and Community Charity, supported by Friends of Harrogate Hospital (cont)

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the charity’s trustee, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the trustee those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Saffery LLP Chartered Accountants Mitre House North Park Road Harrogate North Yorkshire HG1 5RX Statutory Auditors Date:

Saffery LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006

Page 14

Trustee's Annual Report for Harrogate Hospital and Community Charity, supported by Friends of Harrogate Hospital Statement of Financial Activities for the year ended 31 March 2022

Note
Income:
Donations and legacies
3
Income from Charitable activities:
Fund raising events
4
Income from Investments
5
Total income and endowments
Expenditure:
Costs of raising funds:
Investment management costs
Charitable Activities
7
Total expenditure
Gross Transfer Between Funds
Net income and expenditure before
investment gains/(losses)		 Unrestricted
Funds
£000
945
8
9		 Restricted
Funds
£000
-
-
33		 Endowment
Funds
£000
-
-
-		 Total
Funds
2022
£000
945
8
42		 Total
Funds
2021
£000
910
11
46
962 33 - 995 967
2
651		 10
-		 -
-		 12
651		 11
764
653 10 - 663 775
- - - - -
309 23 - 332 192
Net gains on investments
Net Movement of Funds
Reconciliation of Funds
Total Funds brought forward
13
Total Funds carried forward
13		 3 - 14 17 346
312
398		 23
49		 14
1,739		 349
2,186		 538
1,648
710 72 1,753 2,535 2,186

The notes on pages 22 to 27 form part of these accounts

Page 15

Trustee's Annual Report for Harrogate Hospital and Community Charity, supported by Friends of Harrogate Hospital Statement of Financial Activities - Prior Year for the year ended 31 March 2021

Note
Income:
Donations and legacies
3
Income from Charitable activities:
Fund raising events
4
Income from Investments
5
Total income and endowments
Expenditure:
Costs of raising funds:
Investment management costs
Charitable Activities
7
Total expenditure
Gross Transfer Between Funds
Net income and expenditure before
investment gains/(losses)		 Unrestricted
Funds
£000
910
11
9		 Restricted
Funds
£000
-
-
37		 Endowment
Funds
£000
-
-
-		 Total
Funds
2021
£000
910
11
46		 Total
Funds
2020
£000
608
24
58
930 37 - 967 690
1
727		 10
37		 -
-		 11
764		 12
756
728 47 - 775 768
- - - - -
202 (10) - 192 (78)
Net gains on investments
Net Movement of Funds
Reconciliation of Funds
Total Funds brought forward
13
Total Funds carried forward
13		 45 - 301 346 (199)
247
151		 (10)
59		 301
1,438		 538
1,648		 (277)
1,925
398 49 1,739 2,186 1,648

The notes on pages 22 to 27 form part of these accounts

Page 16

Trustee's Annual Report for Harrogate Hospital and Community Charity, supported by Friends of Harrogate Hospital Statement of Financial Position As at 31st March 2022

Note
Fixed assets:
Investments
10
Current assets:
Debtors
11
Cash at bank and in hand
11
Liabilities:
Creditors falling due within one year
12
Net current assets
Total assets less current liabilities
Net assets
The funds of the charity:
13
Endowment funds
Restricted income funds
Unrestricted income funds
Total charity funds		 Unrestricted
Funds
£000
77		 Restricted
Funds
£000
-		 Endowment
Funds
£000
1,753		 Total
Funds
2022
£000
1,830		 Total
Funds
2021
£000
1,815
77 - 1,753 1,830 1,815
20
643		 -
72		 -
-		 20
715		 17
391
663 72 - 735 408
(30) - - (30) (37)
633 72 - 705 371
710 72 1,753 2,535 2,186
710 72 1,753 2,535 2,186
-
-
710		 -
72
-		 1,753
-
-		 1,753
72
710		 1,739
49
398
710 72 1,753 2,535 2,186

The notes on pages 22 to 27 form part of these accounts

Chief Executive - Mr Jonathan Coulter.......................................................................... Date: 28th September 2023

Director of Finance - Mr Jordan McKie ………………................................................. Date: 28th September 2023

Page 17

Trustee's Annual Report for Harrogate Hospital and Community Charity, supported by Friends of Harrogate Hospital Statement of Financial Position - Prior Year As at 31st March 2021

Note
Fixed assets:
Investments
10
Current assets:
Debtors
11
Cash at bank and in hand
11
Liabilities:
Creditors falling due within one year
12
Net current assets
Total assets less current liabilities
Net assets
The funds of the charity:
13
Endowment funds
Restricted income funds
Unrestricted income funds
Total charity funds		 Unrestricted
Funds
£000
76		 Restricted
Funds
£000
-		 Endowment
Funds
£000
1,739		 Total
Funds
2021
£000
1,815		 Total
Funds
2020
£000
1,414
76 - 1,739 1,815 1,414
17
342		 -
49		 -
-		 17
391		 16
269
359 49 - 408 285
(37) - - (37) (51)
322 49 - 371 234
398 49 1,739 2,186 1,648
398 49 1,739 2,186 1,648
-
-
398		 -
49
-		 1,739
-
-		 1,739
49
398		 1,438
59
151
398 49 1,739 2,186 1,648

Page 18

Trustee's Annual Report for Harrogate Hospital and Community Charity, supported by Friends of Harrogate Hospital Statement of Cash Flows For the Year Ending 31 March 2022

Note
Cash flows from operating activities
Net income for 2021/22 (as per the Statement of Financial
Activities)
Non-cash income and expense
(Increase) in receivables
11
(Decrease) in payables
12
Increase/(Decrease) in Gains on Investment Revaluations
10
Net Cash Generated From Operations
Cash flows from investing activities
Net cash flows from investing activities (excl. Revaluations)
10
Net cash used in investing activities
Cash flows from financing activities
Net cash generated/(used) in financing activities
Net increase in cash and cash equivalents
Cash and cash equivalents at 1 April 2021
Cash and cash equivalents at 31 March 2022		 2021/22
£000
349
349
(3)
(7)
9
348
(24)
(24)
-
-
324
391
715		 2020/21
£000
538
538
(1)
(14)
(291)
232
(110)
(110)
-
-
122
269
391

The notes on pages 22 to 27 form part of these accounts

Page 19

Harrogate Hospital and Community Charity, supported by Friends of Harrogate Hospital - Notes to the Accounts

1. Accounting Policies

(a) Basis of preparation

The financial statements have been prepared under the historical cost convention, with the exception of investments which are included at fair value. The accounts 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 1st January 2019 and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011 and UK Generally Accepted Practice as it applies from 1 January 2019.

The Charity is a public benefit entity.

The financial statements have been prepared on a going concern basis which the Trustees consider to be appropriate for the following reasons. The business model of the charity is such that its charitable activities are limited to those which it has sufficient funds to support from the excess of funding received over the costs of administering the charity. The charity therefore has no specific commitments and no committed costs beyond its fixed costs of operation which are detailed in note 6. The charity constitutes a public benefit entity as defined by FRS102. The accounts are presented in sterling and are rounded to the nearest thousand pound.

The Trustee has reviewed the cash flow forecasts for a period of 12 months from the date of approval of these financial statements which indicate that the charity will have sufficient funds to meet its liabilities as they fall due for that period. The Trustee has also considered the implications of COVID-19 on these cash flow forecasts and consider that as a result of its operating model explained above, even if no further funding is received in the 12 month period, the charity has sufficient cash reserves to pay all committed costs. Consequently, the Trustee is confident that the charity will have sufficient funds to continue to meet its liabilities as they fall due for at least 12 months from the date of approval of the financial statements.

(b) Funds structure

Unrestricted income funds comprise those funds which the Trustee is free to use for any purpose in furtherance of the charitable objects. Unrestricted funds include designated funds, where the donor has made known their non binding wishes or where the Trustee, at its discretion, has created a fund for a specific purpose .

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by the donor.

The charity has one permanent endowment fund. The income of the Elsie Sykes Endowment Fund can be used for medical equipment or medical research (excluding transplant or vivisection work).

The major funds held in each of these categories are disclosed in note 13.

(c) Incoming resources

All incoming resources are recognised once the charity has entitlement to the resources, it is probable that the resources will be received and the monetary value of incoming resources can be measured with sufficient reliability.

(d) Incoming resources from legacies

Legacies are accounted for as incoming resources either upon receipt or where the receipt of the legacy is virtually certain; this will be once confirmation has been received from the representatives of the estate(s) that payment of the legacy will be made or property transferred and once all conditions attached to the legacy have been fulfilled.

Page 20

Harrogate Hospital and Community Charity, supported by Friends of Harrogate Hospital - Notes to the Accounts (continued)

1. Accounting Policies (continued)

(e) Resources expended

Expenditure is recognised when a liability is incurred and can be measured reliably.

(f) Irrecoverable VAT and Taxation

Irrecoverable VAT is charged against the category of resources expended for which it was incurred. Harrogate and District NHS Foundation Trust Charitable Fund is considered to pass the tests set out in paragraph 1 schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable trust for UK income tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Part 10 Income Tax Act 2007 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

(g) Charitable activities

Costs of charitable activities comprise all costs incurred in the pursuit of the charitable objects of the charity. These costs comprise direct costs and an apportionment of overhead costs.

(h) Governance and support costs

Other resources expended comprise all costs incurred in the running of the charity. These costs include costs related to statutory audit together with recharge of staff salaries.

(i) Fixed asset investments

Investments are stated at market value as at the balance sheet date. The statement of financial activities includes the net gains and losses arising on revaluation and disposals throughout the year.

The investments are included in the balance sheet at the closing dealing price at 31 March 2022.

(j) Unrealised / 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 sale proceeds and market value at the start of the year (purchase date if later). Unrealised gains and losses are calculated as the difference between the market value at the year end and market value at the start of the year (or purchase date if later).

2. Related party transactions

Harrogate and District NHS Foundation Trust is the beneficiary of the charity. The charity has provided funding to the Foundation Trust for approved expenditure amounting to £499,000 (2021: £645,000). As outlined in notes 11 and 12, the charity was owed £14k from the Foundation Trust (2021: £10k) and owed £17k to the Foundation Trust (2021: £34k).

During the year none of the members of the Board of Directors or senior NHS Foundation Trust staff or parties related to them were beneficiaries of the charity.

No member of the Board of Directors has received honoraria, emoluments or expenses in the year in respect of their service to the charity. The Trustee has not purchased trustee indemnity insurance.

Page 21

Harrogate Hospital and Community Charity, supported by Friends of Harrogate Hospital - Notes to the Accounts (continued)

3. Analysis of donations and legacies

Donations
Gifts in Kind
Legacies		 Unrestricted
Funds
£000
582
74
289		 Restricted
Funds
£000
-
-
-		 Total
2022
£000
582
74
289		 Total
2021
£000
625
229
56
945 - 945 910

In relation to the prior year, there were no donations or legacies to Restricted Funds.

Expenditure relating to Gifts in Kind can be found in note 7 as part of Staff Welfare and Amenities expenditure.

4. Analysis of income from fundraising events

Unrestricted Restricted Total Total
Funds Funds 2022 2021
£000 £000 £000 £000
Other 8 - 8 11

In relation to the prior year, there was no fundraising event income to Restricted Funds.

5. Income from investments

5. Income from investments
Unrestricted
Funds		 Restricted
Funds		 Total
2022		 Total
2021
Quoted investments (fixed asset investments) £000
9		 £000
33		 £000
42		 £000
46
9 33 42 46

In relation to the prior year, there was £37k of income investments to Restricted Funds.

6. Allocation of Governance Costs

Governance costs were allocated between the restricted and unrestricted funds, dependant on the work undertaken as part of projects related to the restricted funds. There were no projects utilising the restricted funds within 2021/22.

Apportionment of Governance Costs
Staff Costs (see note 8)
Audit Fees (see note 9)
Computer Expenses
Total
Prior Year
Staff Costs (see note 8)
Audit Fees (see note 9)
Computer Expenses
Total		 Unrestricted
Funds
£000
140
10
2		 Restricted
Funds
£000
-
-
-		 Total
2022
£000
140
10
2
152
Total
2021
£000
105
10
4
119
152 -
Unrestricted
Funds
£000
80
1
1		 Restricted
Funds
£000
25
9
3
82 37

Page 22

Harrogate Hospital and Community Charity, supported by Friends of Harrogate Hospital - Notes to the Accounts (continued)

7. Analysis of charitable expenditure

The charity made funds available to Harrogate and District NHS Foundation Trust in support of a range of charitable activities.

Medical Equipment
Staff Training
Computer Equipment
Governance costs (see note 6)
Staff Welfare and Amenities (incl. Gifts in Kind)
Patient Welfare and Amenities		 2022
£000
177
25
21
102
174
152		 2021
£000
145
22
45
239
194
119
651 764

8. Analysis of staff costs

There are no staff directly employed by the Charity. Recharges are made for Harrogate and District NHS Foundation Trust staff time. The recharge for the year ended 31 March 2022 was £140,000 (2021: £105,000). No staff had emoluments in excess of £60,000 (2021: £nil).

9. Auditor’s remuneration

The auditor's remuneration for the financial year ended 31 March 2022 was £10,000 the cost included within the financial statements was based on previous years remuneration as at time of doing the accounts no auditor had been appointed (the auditor's remuneration for the financial year ending 31 March 2021 was £9,576).

10. Fixed asset investments

Realised Gain on disposals
Fixed asset investments:
Common investment funds
Fixed Interest Investments
Commercial Properties
UK Investments
Overseas Investments
Additions at cost
Market value as at 31 March 2022
Net Gains on revaluation
Disposals at carrying value
Movement in fixed asset investments
Market value brought forward		 2022
2021
13.80
14.10
0.00
0.80
37.10
37.00
49.10
48.10
100.00
100.00
Percentage of the		 2022
2021
13.80
14.10
0.00
0.80
37.10
37.00
49.10
48.10
100.00
100.00
Percentage of the		 2022
£000
1,815
408
(410)
26
(9)		 2021
£000
1414
522
(467)
55
291
1,830 1,815
2022
£000
252
-
679
899		 2021
£000
256
14
672
873
100.00 100.00 1,830 1,815

There are no direct investments held outside of the UK by the charity.

Page 23

Harrogate Hospital and Community Charity, supported by Friends of Harrogate Hospital - Notes to the Accounts (continued)

11. Current assets

11. Current assets
Debtors: amounts falling due within one year
Accrued income (see below)
Other debtors (see below)		 2022
£000
6
14		 2021
£000
7
10
20 17

Accrued income comprises £6,000 dividends declared before 31 March 2022 but not due to be paid until after the year end which will be received in the year ending 31 March 2022. Other debtors wholly represent any sums owed to the charity by a related party, Harrogate and District NHS Foundation Trust, at the year end for income collected by the Trust on behalf of the charity.

Analysis of cash and deposits
Government Banking Service
Investment Fund Manager
Creditors: amounts falling due within one year
Other Creditors (see below)
Accruals
12. Current liabilities		 2022
£000
697
18		 2021
£000
376
15
715 391
2022
£000
17
13		 2021
£000
34
3
30 37

Other creditors represent sums owed at the year end by the charity to a related party, Harrogate and District NHS Foundation Trust, for costs incurred by the Trust on behalf of the charity in the furtherance of the charity’s objects.

Page 24

Harrogate Hospital and Community Charity, supported by Friends of Harrogate Hospital - Notes to the Accounts (continued)

13. Analysis of Funds

Endowment
Funds
Elsie Sykes Endowment
Restricted
Funds		 Balance at
1 April 2021
£000
1,739		 Incoming
Resources
£000
-		 Resources
expended
£000
-		 Investment
gain
£000
14		 Balance at
31 March 2022
£000
1,753
1,753
1,739 - - 14
Scanner Appeal 83 - - - 83
Other
Material Unrestricted
and Designated
Funds
Rheumatalogy RA- Team
Breast Care Services
Breast Unit
Ferndale Ward Midwifery
Adult Community Services
Covid 19 Urgent appeal
Sir Robert Ogden Macmillan Centre
General Fund
Friends General Fund
Crem Fees
Staff Car Parking
NHS S3 Grant
Capital
Linden Trust
Other		 (34) 33 (10) - (11)
72
23
26
100
28
82
32
164
(524)
67
21
119
74
28
20
450
710
49 33 (10) -
23
26
-
29
74
93
44
(615)
66
23
19
-
139
20
457		 -
-
100
-
13
1
187
299
17
-
100
94
-
-
151		 -
-
-
(1)
(5)
(62)
(67)
(208)
(16)
(2)
-
(20)
(111)
-
(161)		 -
-
-
-
-
-
-
-
-
-
-
-
-
-
3
398 962 (653) 3

The Trustee set an opening or closing balance of £20,000 or above as the threshold for reporting these funds.

Page 25

Harrogate Hospital and Community Charity, supported by Friends of Harrogate Hospital - Notes to the Accounts (continued)

13. Analysis of Funds (continued)

Previous Year
Endowment
Funds
Elsie Sykes Endowment
Restricted
Funds		 Balance at
1 April 2020
£000
1,438		 Incoming
Resources
£000
-		 Resources
expended
£000
-		 Investment
Loss
£000
301		 Balance at
31 March 2021
£000
1,739
1,739
1,438 - - 301
Scanner Appeal 83 - - - 83
Other
Material Unrestricted
and Designated
Funds
Rheumatology RA- Team
Breast Care Services
Ferndale Ward Midwifery
Adult Community Services
Covid 19 Urgent appeal
Sir Robert Ogden Macmillan Centre
General Fund
Friends General Fund
Crem Fees
Linden Trust
Other		 (24) 37 (47) - (34)
49
23
26
29
74
93
44
(615)
66
23
20
615
398
59 37 (47) -
22
14
27
94
-
51
(612)
53
-
19
483		 -
11
-
50
200
22
426
21
23
1
176		 -
-
(1)
(74)
(107)
(31)
(429)
(8)
-
-
(78)		 1
1
3
4
-
2
-
-
-
-
34
151 930 (728) 45

The Trustee set an opening or closing balance of £20,000 or above as the threshold for reporting these funds.

Page 26

Harrogate Hospital and Community Charity, supported by Friends of Harrogate Hospital - Notes to the Accounts (continued)

14. Description of Funds

Name of Fund

Description, nature and purposes of the fund

The Elsie Sykes Endowment This endowment was a gift from Elsie Sykes in 1978. The Trustee may spend
Trust the income receivable from the capital in order to fund medical equipment or
medical research (excluding transplant or vivisection work).
Scanner Appeal This fund is for the specific purchase of a Scanner by the Harrogate and District
NHS Foundation Trust.
Rheumatology RA-Team This fund has the designated objective to be used by the Rheumatology RA
Team for any charitable purpose for the relief of sickness of patients who are or
have been treated at any health care facility provided by the Harrogate and
District NHS Foundation Trust.
Breast Care Services This fund has the designated objective to be used by the Breast Care Services
for any charitable purpose for the relief of sickness of patients who are or have
been treated at any health care facility provided by the Harrogate and District
NHS Foundation Trust.
Breast Unit This fund has the designated objective to be used by the Breast Care Services
for any charitable purpose for the relief of sickness of patients who are or have
been treated at any health care facility provided by the Harrogate and District
NHS Foundation Trust.
Ferndale Ward Midwifery This fund has the designated objective to be used by the Ferndale Ward
Midwifery for any charitable purpose for the relief of sickness of patients who
are or have been treated at any health care facility provided by the Harrogate
and District NHS Foundation Trust.
Adult Community Services This fund has the designated objective to be used by the Adult Community
Services Teams for any charitable purpose relating to the NHS.
Covid 19 Urgent Appeal This fund has general objects for any charitable purpose relating to the NHS.
Sir Robert Ogden Macmillan This fund has the designated objective to be used by the Sir Robert Ogden
Centre Macmillan Centre for any charitable purpose for the relief of sickness of patients
who are or have been treated at any health care facility provided by the
Harrogate and District NHS Foundation Trust.
General Fund This fund has general objects for any charitable purpose relating to the NHS.
Friends General Fund This fund has general objects for any charitable purpose relating to the NHS.
Crem Fees This fund has general objects for any charitable purpose relating to the NHS.
Staff Car Parking This fund has general objects for any charitable purpose relating to the NHS.
NHS S3 Grant This fund has general objects for any charitable purpose relating to the NHS.
Capital This fund has general objects for any charitable purpose relating to the NHS.
Linden Trust This is an award received by the charity in May 2018, to be used towards
something strategic and has yet to be allocated to a project.

The Trustee set an opening or closing balance of £20,000 or above as the threshold for reporting these funds.

15. Parent organisation

These financial statements are consolidated within the Harrogate and District NHS Foundation Trust Consolidated Financial Statements. Harrogate and District NHS Foundation Trust is a entity operating in the National Health Service in England. The ultimate parent holding is considered as the Department of Health and Social Care.

Page 27