Trust Charitable Funds Annual Report 2020- 21 ELHT your local hospital charity
Contents The Area We Cover 1 Chairman's Report 1 Objectives and Activities 2 Achievements and Performance 3-10 Plans for Future Periods 11 Financial Review 12 Risk Management and Reserves Policy 13-14 Investment Strategy and Policy 13-14 Structure, Governance and Management 15 Committee Membership 16 Declaration 17 Reference and Administrative Details 17
The area we cover
Chairman's report
Welcome to the 2020/21 Annual Report. There is no doubt that the period being reported has been uniquely challenging, in what was an incredibly difficult year for the NHS and throughout our communities. We are proud that regardless of the challenges, our charity mission remained constant – to improve patient experience across East Lancashire and to ensure learning and support is available and delivered to our staff.
The Charitable Funds Committee acts on behalf of the corporate trustee and the Annual Report is designed to give an insight into the extent of the work that has been undertaken during the year. We would like to take this opportunity to thank those individuals who have served on the Charitable Funds Committee, during the course of the year, and on their behalf to express our appreciation to the staff of the Trust for their dedication to caring for our local population.
Covid dominated the entire duration of this report. Whilst it was recognised that there was the inability to host community fundraisers and events due to the pandemic's restrictions, at the same time, the NHS charities became the focus of giving. Promoted by inspirational Captain Tom Moore who ultimately led to online giving at a level that had never been seen before.
"As the Chairman of East Lancashire Hospitals NHS Trust, I have felt incredibly proud of our staff and in awe of the companies and public who have supported us. The Charity brings opportunities that would remain aspirational for the Trust and we could not do this without our generous communities."
This Annual Report lays out how we are moving in that direction and details examples of where the donations of our generous supporters have really made a difference for the patients of East Lancashire Hospitals NHS Trust. Thank you on behalf of the Committee to each and every one of you who have supported ELHT&Me with donations, legacies, volunteering, or in other ways to show how much you care.
Professor Eileen Fairhurst Chairman
Stephen Barnes Non-Executive Director and Charity Committee Chairman
1
East Lancashire Hospitals NHS Trust
Page 3
Objectives and activities
ELHT&Me was launched in 2016 and the object of the Charity is 'for any charitable purpose or purposes relating to the general or any specific purposes of the East Lancashire Hospitals NHS Trust or the purposes of the National Health Service'.
The Trust, the sole corporate trustee of the Charity, provides a range of health care services, predominantly for the local population of East Lancashire of over half a million people.
As a public benefit entity, the main charitable activities of the Charity are to fund:
Improvements to the services provided to patients, primarily through the purchase of equipment that would be outside the NHS funding, as well as improvements to the patient environment and experience Training for Trust staff and to help develop and improve staff amenities
To achieve our aims and objectives, ELHT&Me will actively seek and apply for grants, become front facing through creation of a hub at Royal Blackburn Teaching Hospital, and increase corporate relations. We will also design and deliver large scale events whilst establishing legacies to generate income.
2
Achievements and Performance
Coronavirus brought the importance of the NHS into sharp focus in 2020, and much of our efforts went into supporting colleagues, patients and families as we coped with this alarming pandemic.
3
The Garden of Memories The Garden of Memories, located at Royal Blackburn Teaching Hospital has been customdesigned to honour those who are no longer with us.
The Garden’s entrance fixates on a ‘memory wall’. Butterflies, provided by staff in the Spiritual Care and Bereavement Teams, can be used to share a message about a loved one – one half to be displayed on the wall, the other half to be taken as a keepsake for the loved one.
The Garden of Memories is a delight for the senses. Our onsite blossoming escape has been designed for year-round colour, the soil is filled with bedding plants such as geranium, climbing roses, and ornamental grasses that rustle in the wind for the sound component.
4
Community Fundraising Covid restrictions moved community fundraising online. The overnight movement engaged fundraisers across the world who had connections with East Lancashire.
5
Achievements and Performance
"Ribble Valley truck convoy is cheered by self-isolating residents and delighted youngsters" - Burnley Express
On a Thursday evening in April 2020, truckers hit towns and villages in the Ribble Valley to boost funds for ELHT&Me. The procession ended at Clitheroe Community Hospital in time for the 8pm clap for Heroes.
This memorable fundraiser received TV, Radio, and Press coverage and raised almost £4,000.
Stay home, drink coffee, save lives!
Exchange Coffee Company created a sumptuous blend specially for the NHS and what makes it extra special is for every 250g bag sold, 20% is donated to ELHT&Me.
Drupta's cycling challenge
Drupta wanted to donate money from his piggy bank. Upon learning about Sir Captain Tom Moore, Drupta was inspired and determined to do more. Cycling 50 miles in 10 days, year 2 student Drupta raised £1,100.
HMS Westminster 24 hour exercise event
The Royal Navy Frigate HMS Westminster completed 30-40 minutes of exercise every hour for 24 hours. Hours of squats and lunges raised £2,745 on 15th May.
6
Achievements and
Performance
The impact of the pandemic was felt across East Lancashire Hospitals NHS Trust. We were prompted to publish our Coronavirus campaign using Just Giving, #ThankYouNHS.
The incredible generosity of our local community enabled us to fund many fantastic projects.
The charity received corporate support insourcing PPE, motorhome accommodation, and temporary shower units.
Local companies donated perishable goods that were distributed into free lunch bags for staff. Donations were collected and distributed daily across our sites including community sites.
We were delighted to help to put a smile under the masks of our NHS Heroes.
7
Achievements and
Performance
We proudly funded multiple Oasis rooms across all sites. These rooms were created as break-out spaces for our colleagues to retreat to. Each provides a quiet and calming environment where staff are able to colour, meditate, have a hot or cold beverage, with access to therapy TV and mindfulness activities.
We planned these rooms carefully and received great feedback from users. The Oasis rooms proved so popular that they remain in use.
These areas were generously funded by the many supporters of ELHT&Me. Special thanks to Sofology for donating two sets of sofas to the Chaplaincy rooms.
ELHT&Me took quick action to support patients being connected with their families. Lancashire Fire and individuals from our local community donated iPads and devices that enabled our patients to keep in touch with their family and friends virtually.
Many of the wards received iPads to use for virtual visits. It means a lot to families to see their loved one, one last time.
We need to ensure the families that their loved ones aren't alone. They are not alone because we are here, giving our all.
David Anderson - Chaplain
8
Achievements and
Performance
In response to the Charity's call for help, the community stitched hundreds of scrub bags to enable our staff at the end of a long shift to safely place their laundry.
This project enabled isolating individuals and groups who could no longer meet, the opportunity to feel part of, and contribute to the wonderful NHS.
Family-owned company Farmhouse Biscuits, re-branded its classic mild ginger biscuits in July 2020. The new packaging incorporated the ‘Thank you NHS’ message with a rainbow symbol. For every packet sold, Farmhouse donated 10p to ELHT&Me. Funds raised during the pandemic, including those from sales of the biscuits, are used to support initiatives and projects that make the pandemic response more manageable. Gill McIvor, CEO of the Nelson based company, said “After facing one of their toughest challenges to date with Covid-19, it felt like the right thing to do.”
“We are just so proud to put a little back into our fabulous NHS who have been taking great care of us all for over 70 years."
9
Achievements and
Performance
With restrictions still in place through the festive period, we did things a little differently.
To give back and thank our dedicated workforce, we proudly fully-funded over 9,000 Christmas dinners. All NHS employees at Royal Blackburn and Burnley General Teaching Hospitals, Accrington Victoria, Clitheroe and Pendle Community Hospitals, as well as staff based at the Trust’s community sites, were able to claim a hot or cold Christmas dinner option.
Senior staff and members of the Executive Team supported the Trust’s Catering Team to serve the meals, giving them another opportunity to thank staff personally for their commitment during the pandemic.
10
Plans for future periods
Artwork displayed to keep staff morale up, created by our younger patients.
We must acknowledge that Covid-19 has had a considerable impact on the Trust, its staff and the Charity. Whilst we have benefited to some extent from the public’s support for the NHS and the immense fundraising efforts on behalf of NHS Charities Together, the Charity has also been negatively affected by the curtailment of mass events, uncertainty and people losing their jobs, and our reduced ability (due to Covid) to go out and meet people. This has particularly hampered our efforts to secure increased corporate support.
Nevertheless, the charity has continued to grow and we are confident of further success.
11
Financial review
The principal source of funding for the Charity is income from donations and legacies, including grant funding, which are used to fund improvements to the services provided to patients, patient environment, and experience, as well as to fund training for Trust staff and to help to develop and improve staff amenities, in line with the Charity’s purpose.
As a result of the gifts in kind generously donated following the onset of the COVID-19 pandemic, £244,000 of notional income has also been recognised, together with a matching amount included in expenditure. Through its membership of NHS Charities Together, the Charity was also successful in its applications for grant funding totaling £198,000 for the health and wellbeing of staff.
As a result of the pandemic, infection prevention control measures and a restriction on patients and visitors attending hospital as a result of COVID have negatively impacted ‘footfall’ donations at hospital sites, as well as front-facing fundraising activities and direct engagement.
| Analysis of income 2019-20 2020-21 |
||
| Income from donation and legacies Donations Legacies Grants Income from other trading activities Income from training activities Other income Income from investments Investments listed on the London Stock Exchange Interest on cash/bank |
607 28 198 833 45 71 116 48 0 48 |
692 1 13 706 80 143 223 67 1 68 |
| Total | 997 | 997 |
Total expenditure for 2020-21 of £1,540,000 compares to £1,020,000 in the previous financial year. At £846,000, expenditure on medical and surgical equipment represents the largest use of charitable funds. This includes £343,000 for defibrillators funded from a donation received from Euro Garages in 2019-20, as well as £238,000 relating to lease payments on two robotic surgical systems.
With the Charity entering into a seven-year contract to lease the robotic surgical systems in December 2019, the remaining commitment is £1,348,000. Given the impact of this commitment on the financial position of the Charity going forward, it represents its principal risk but is monitored through the Charitable Funds Committee, alongside mitigating actions.
| Analysis of expenditure 2019-20 2020-21 |
||
| Expenditure of raising funds Investment Management and Admin Fees Expenditure on charitable activities Gifts in kind Staff welfare/training/amenities Furniture and Equipment Training Medical and surgical equipment Other expenditure |
14 14 273 68 50 58 846 231 1,526 |
7 7 - 114 83 61 535 220 1,013 |
| Total 1,020 1,540 |
||
When net gains on investments of £194,000 are taken into account, fund balances have fallen by £349,000 in 2020-21 to £1,665,000, £1,633,000 of which is unrestricted with £1,257,000 held in designated funds.
The market value of the Charity’s investment portfolio as at 31 March 2021 was £1,689,000, £1,607,000 of which is managed by Charity Investment Managers. The performance of these funds was 1.52% above FTSE 100 and British Government Securities (BGS) Benchmark and the £45,000 of related investment income equates to a gross yield of 2.8%.
The Charitable Funds Committee aims to turn over the majority of charitable funds, excluding specific long-term legacies, once every three years.
12
Risk Management
Since the Charity's key systems are designed and implemented by East Lancashire Hospitals NHS Trust, the Charity therefore befnefits from the Trust's robust internal control and risk management framework.
Where significant risks and uncertanties are identified for the Charity, they are considered at meetings of the Charitable Funds Committee, together with mitigating actions.
Income and expenditure is monitored by the Charitable Funds Committee as part of the risk management process to avoid unforseen calls on reserves and to ensure that the Charity is well-positioned to meet its objectives throughout the year.
Reserves Policy
The Charity derives its income mainly from donations and legacies, the level of which cannot be accurately predicted year on year.
Since the Charity aims to spend the income it receives for its charitable purpose, there are a number of reasons why it needs to retain a proportion of the income it receives, which include:
Ensuring income from donations and legacies are spent in line with the donors' wishes, particularly where restrictions have been placed on its use; Ensuring sufficient funds are available to fund planned future projects; For gifts of endowment where the charity has no power to treat the monies as income to fund charity related expenditure; and Meeting current or anticipated expenses such as management, adminstration and governance costs, including independent examination costs.
For these reasons, the Charity holds reserves at a minimum level of £500,000.
13
Investment Strategy and Policy
The aim of the investment strategy is to ‘invest funds so as to provide as high a current income as possible, consistent with the objective of at least preserving the income generating value of capital over the long term’. The balance of investments after taking into account the reserved funds are managed in an investment portfolio designed to provide a return in the medium to longer term. The Charitable Funds Committee is assisted in this aspect by the professional advice of independent Investment Managers.
The Trustees believe that companies which act in a socially responsible way are more likely to flourish and to deliver the best long term balance between risk and return. In developing the ethical investment principles the Charitable Fund Committee has considered the aims and objectives of the charity, the NHS Constitution, the NHS’ purposes and fundamental principles and the Trust’s responsibilities as a good corporate citizen.
The Trustees believe that the following principles are consistent with these considerations, and where exclusions are applied it is on the basis of inconsistency with one or more of the responsibilities or guidance outlined below:
Investment will not be permitted in companies or organisations manufacturing, promoting and/or distributing alcohol and tobacco products, arms and armaments.
Investment will also not be permitted in companies or organisations which may bring criticism to the Trust in its health promotion and educational roles or where Charitable Fund Committee members have reason to believe the human rights of those employed are not respected and upheld.
The Trust will seek to make socially responsible investments in companies or organisations having a regard to their environmental management, policies and reporting practices, as well as investments in locally based companies where they are considered to be an acceptable financial risk and fall within the overarching principles detailed above.
The Trust is an apolitical organisation and will seek to avoid investment in politically motivated organisations and companies.
14
Structure, governance and
management
The Charity which was formerly known as the East Lancashire Hospitals NHS Trust Charitable Fund and other related charities is now known as ELHT&Me.
The Charity was created under a Trust deed executed on 28 January 2004 and constituted with East Lancashire Hospitals NHS Trust as sole corporate trustee. This deed consolidated a number of charitable funds held by the former Burnley Healthcare and Blackburn, Hyndburn, and Ribble Valley Health Care NHS Trusts prior to their merger to form the East Lancashire Hospitals NHS Trust. A deed of the amendment was executed on 11 July 2018 to provide clarity as to the purposes for which the charitable funds are held and to simplify the administration of the Charity.
As ELHT&Me has a corporate trustee, in accounting terms, it is controlled by the Trust and is, therefore, its subsidiary. Financially, the Charity is not material to Trust, so it is not consolidated into its accounts.
The Trust is funded by the Charity to employ a Fundraising Manager and a Community Fundraising Officer to support ELHT&Me.These posts reflect the important role that fundraising has to play in the enhancement of the patient experience and patient and public engagement.
Charitable funds received by the Charity are accepted, held, and administered as funds and property held on Trust for purposes relating to the health service in accordance with the National Health Service Act 1977 and the National Health Service and Community Care Act 1990.
In practice, responsibility for the monitoring and approval of activities relating to charitable fundraising and the uses to which charitable funds are applied has been delegated by the Trust Board (Corporate Trustee) to the Trust’s Charitable Funds Committee. The terms of reference for the Committee are reviewed annually by the Trust Board and compliance with these terms of reference is also assessed on an annual basis by the Committee and reported back to the Trust Board as part of the reporting from the Charitable Funds Committee.
Membership of the Charitable Funds Committee is drawn from the Trust Board and comprises a Non-Executive Director Chair of the Committee, one further Non-Executive Director/Associate Non-Executive Director member, the Executive Director of Finance (as lead director for the Committee), the Executive Director of Nursing and the Executive Director of Communications and Engagement.
The Associate Director of Corporate Governance/Company Secretary, together with the Deputy Director of Finance or Financial Controller and the Fundraising Manager attend meetings of the Committee to provide advice and assistance.
All Trust Board members are entitled to attend the meeting and have sight of the supporting documents. The Committee provides regular reports of its decisions to the formal Trust Board meetings.
There are a number of individual funds within the umbrella of the Charity, each of which has a designated funds manager with day-to-day responsibility for the administration of the fund, being involved in fundraising activities, and decisions on how donations should be expended within the financial framework of the charity.
The decision making process is aligned to financial limits, as outlined in the scheme of delegation for the Charity. Fund managers have delegated authority to incur expenditure below £3,000. Expenditure above £10,000 is approved by the Charitable Funds Committee, with expenditure between these limits approved by either the Executive Director of Finance or Deputy Director of Finance.
Director recruitment, appointment, induction and training
There are different recruitment and appointment processes for the executive and Non-Executive members of the Trust Board.
From 1 April 2016, NHS Improvement has had responsibility for the appointment of Non-Executive members to NHS Trust Boards on behalf of the Secretary of State for Health and Social Care.
Executive members of the Board are subject to the recruitment and appointment processes of the Trust.
All Directors are subject to the induction and training processes of the Trust.
15
Committee membership
Stephen Barnes Non-Executive Director and Charity Committee Chairman
Richard Smyth Non-Executive Director
Christine Pearson Exectuvie Director of Nursing
Michelle Brown Executive Director of Finance
Committee membership
Name Position Committee Member Professor Eileen Fairhurst Chairman Mr Kevin McGee Chief Executive Officer - no longer in post Mrs Trish Anderson Non-Executive Officer Professor Graham Baldwin Non-Executive Director Mr Stephen Barnes Non-Executive Director -Committee Member, Committee Chair Mrs Michelle Brown Executive Director of Finance -Committee Member Mr Harry Catherall Associate Non-Executive Director (non-voting) Mrs Sharon Gilligan Chief Operating Officer - From October 2020 Mr Martin Hodgson Deputy Chief Executive Mr Jawad Hussain Executive Medical Director Miss Naseem Malik Non-Executive Director Mr Tony McDonald Executive Director of Integrated Care, Partnerships and Resilience - From December 2020 Mr Kevin Moynes Executive Director of HR and OD (non-voting) Mrs Feroza Patel Associate Non-Executive Director (non-voting) Mrs Christine Pearson Executive Director of Nursing -Committee Member Mr Richard Smyth Non-Executive Director -Committee Member Mr Khalil Rehman Non-Executive Director - From 01 Febrary 2021 Mr Mike Wedgeworth Associate Non-Executive Director (non=-voting) Ms Shelley Wright Joint Executive Director of Communications and Engagement (ELHT & BTHT) - From 04 January 2021 -Committee Member
Shelley Wright Christine Hughes Joint Executive Director of Executive Director of Communications and Engagement (ELHT Communications and Engagement - and BTHT) - From 04 January 2021 To 04 December 2020
16
Declaration
The Corporate Trustee declares that it has approved the annual report of ELHT&Me for 2020/21.
Stephen Barnes
Non- Executive Director
Charitable Funds Committee Chair
East Lancashire Hospitals NHS Trust
Michelle Brown
Executive Director of Finance
East Lancashire Hospitals NHS Trust
Reference and administrative details
Registered charity name: ELHT&Me
ChCharity Registration Number: 1050478
Principal Office Address: East Lancashire Hospitals NHS Trust, Trust Headquarters, Royal
Blackburn Teaching Hospital, Haslingden Road, BB2 3HH
Trustee: East Lancashire Hospitals NHS Trust
Key Management Personnel: Trust Charitable Funds Committee
The following key professional services are provided to the Charity by external organisations:
Charity bankers: Governing Banking Service c/o NatWest, Bolton Customer Service Centre, PO Box 2027 Parklands, De Havilland Way, Horwich, Bolton, BB6 4YU
Charity independent examiner: Nicola Wakefield, Mazars, One St Peter's Square, Manchester, M3 3EB
Charity investment managers: Brewin Dolphin, 1 The Avenue, Spinningfields Square, Manchester, M3 3AP
Charity solicitors: Hempsons, City Tower Piccadilly Plaza, Manchester, M1 4BT
Charity internal auditors: Mersey Internal Audit Agency (MIAA), Regatta Place, Brunswick Business Park, Summers Road, Liverpool, L3 4BL
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NHS your local Zhospital charity
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2020
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Annual Accounts – Unaudited FOR THE YEAR ENDED 31st March 2021
Charity Registration Number 1050478
ELHT&me
ELHT&Me Accounts 2020-21
STATUTORY BACKGROUND
ELHT&Me, for which East Lancashire Hospitals NHS Trust is the sole Corporate Trustee, is registered with the Charity Commission.
The Corporate Trustee has been appointed in accordance with the National Health Service Act 2006.
MAIN PURPOSE OF THE CHARITY
The main purpose of the Charity is to apply income for any charitable purpose relating to the National Health Service wholly or mainly for the services provided by East Lancashire Hospitals NHS Trust.
Foreword
ELHT&Me Accounts 2020-21
Statement of Trustee responsibilities
Under the trust deed of the charity and charity law in England and Wales, the Corporate Trustee is required to prepare financial statements for each financial year which give a true and fair view of the Charity's financial activities during the year and of its financial position at the end of the year.
In preparing these financial statements, the Trustee is required to:
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Select suitable accounting policies and then apply them consistently;
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Make judgements and estimates that are reasonable and prudent;
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State whether the applicable accounting standards and statements of recommended practice have been followed, subject to any material departures disclosed and explained in the financial statements; and
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• Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Charity will continue its activities.
The Trustee is required to act in accordance with the trust deed of the charity, within the framework of trust law. The Trustee is responsible for keeping proper accounting records, sufficient to disclose at any time, with reasonable accuracy, the financial position of the charity at the time, and enable the Trustee to ensure that any statements of accounts comply with the requirements of regulations under the provision. The Corporate Trustee has general responsibility for taking steps as are reasonably open to it to safeguard the assets of the charity and to prevent and detect fraud and other irregularities.
These financial statements were approved by order of the Corporate Trustee on .................... and were signed on its behalf by:
…………………………………………….. ……………………………………………..
Stephen Barnes Non-Executive Director Charitable Funds Committee Chair East Lancashire Hospitals NHS Trust
Michelle Brown Executive Director of Finance East Lancashire Hospitals NHS Trust
Trustee responsibility
ELHT&Me Accounts 2020-21
Statement of Financial Activities
| Statement of Financial Activities | ||
|---|---|---|
| Note Income from: 3 Donation and legacies Other trading activities Investments Total Expenditure on: 4 Raising funds Charitable activities Total Net gains / (losses) on investments Net (expenditure) Transfers between funds Net movement in funds Reconcilation of funds: Total funds brought forward Total funds carried forward |
Unrestricted funds Restricted funds Total £'000 £'000 £'000 833 0 833 116 0 116 48 0 48 997 0 997 (14) 0 (14) (1,526) 0 (1,526) (1,540) 0 (1,540) 194 0 194 (349) 0 (349) 0 0 0 (349) 0 (349) 1,982 32 2,014 1,633 32 1,665 2020-21 |
2019-20 Total £'000 706 223 68 |
| 997 | ||
| (7) (1,013) |
||
| (1,020) | ||
| (138) | ||
| (161) | ||
| 0 | ||
| (161) | ||
| 2,175 | ||
| 2,014 |
Page 1
ELHT&Me Accounts 2020-21
Balance Sheet
| Note Fixed assets Investments 9 Current assets Debtors 7 Cash at bank and in hand Total current assets Liabilities Creditors: amounts falling due within one year 8 Net current (liabilities)/assets Total assets less current liabilities Total net assets The funds of the Charity: Restricted income funds Unrestricted funds Total Charity funds |
31 March 2021 £'000 1,689 25 174 199 (223) (24) 1,665 1,665 32 1,633 1,665 |
31 March 2020 £'000 |
|---|---|---|
| 1,758 360 72 |
||
| 432 | ||
| (176) | ||
| 256 | ||
| 2,014 | ||
| 2,014 | ||
| 32 1,982 |
||
| 2,014 |
The notes at pages 4 to 10 form part of these accounts.
Approved by order of the Corporate Trustee on …………………………... and signed on its behalf by:
……………………………………………..
Stephen Barnes Non-Executive Director Charitable Funds Committee Chair East Lancashire Hospitals NHS Trust
……………………………………………..
Michelle Brown Executive Director of Finance East Lancashire Hospitals NHS Trust
Page 2
ELHT&Me Accounts 2020-21
Statement of Cashflows
| Note 2020-21 £'000 Cash flows from operating activities: Net cash (used in) operating activities (240) Cash flows from investing activities Dividends and interests from investments 3 48 Purchase of investments (842) Proceeds from the sale of investments 1,136 Net cash inflow from investing activities 342 Net cash inflow/(outflow) before financing 102 Cash flows from financing activities 0 Net cash outflow from financing activities 0 Change in cash and cash equivalents in the reporting period 102 Cash and cash equivalents at beginning of the year 72 Cash and cash equivalents at end of the year 174 Reconciliation of net (expenditure) to net cash flow from operating activities Net (expenditure) for the reporting period (as per the Statement of Financial Activities) (349) Adjustments for: (Gains)/losses on investments (225) Dividends and interest from investments 3 (48) Decrease/(increase) in debtors 7 335 Increase in creditors 8 47 Net cash (used in) operating activities (240) |
2019-20 £'000 (281) 68 (315) 311 |
|---|---|
| 64 | |
| (217) 0 |
|
| 0 | |
| (217) 289 |
|
| 72 | |
| (161) 151 (68) (306) 103 |
|
| (281) |
Page 3
ELHT&Me Accounts 2020-21
Notes to the Accounts
1 Basis of preparation
1.1 Basis of accounting
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These accounts have been prepared on the basis of historic cost, with the exception of investments which are shown at market value, in accordance with:
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Accounting and Reporting by Charities: Statement of Recommended Practice (FRS 102);
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the UK Generally Accepted Accounting Practice and the Charities Act 2011; and
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the organisation's Charity Commission registration.
2 Accounting policies
2.1 Recognition of income
Income is recognised in the Statement of Financial Activities (SOFA) based on the following criteria:
a) entitlement - arises when a particular resource is receivable or the Charity's right become legally enforeceable;
b) probability - when receipt of the income is probable; and
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c) measurement - when the monetary value can be measured with sufficient reliability.
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2.2 Income with related expenditure
Where income have related expenditure (as with fundraising or contract income) the income and related expenditure are reported gross in the SOFA.
2.3 Grants and donations
- Grants and donations are only included in the SOFA when the charity has unconditional entitlement to the resources.
2.4 Tax reclaims on donations and gifts
Income from tax reclaims are included in the SOFA at the same time as the gift to which they relate.
- 2.5 Contractual income and performance related grants
This is only included in the SOFA once the related goods or services have been delivered.
2.6 Gifts in kind
Gifts in kind are accounted for at a reasonable estimate of their value to the charity or the amount actually realised. Gifts in kind for sale or distribution are included in the accounts as gifts only when sold or distributed by the charity. Gifts in kind for use by the charity are included in the SOFA as income when receivable.
2.7 Legacies
Legacies are accounted for as income when a part or final distribution is received from the executors of the estates(s), or when the factors specfied in 2.1(a) above can be met. Where the exact monetary value is not known, an assessment will be made based on known facts and potential liabilities and disbursement due from the estate, to provide a reasonable estimation of the amount due to the Charity.
- 2.8 Donated services and facilities
These are only included in income (with an equivalent amount in expenditure) where the benefit to the Charity is reasonably quantifiable, measurable and material. The value placed on this expenditure is the estimated value to the charity of the service or facility received.
2.9 Volunteer help
The value of any voluntary help received is not included in the accounts but is described in the annual report.
2.10 Investment income
This is included in the accounts when received. Investment Income is allocated to Funds on a basis of the average fund balances over the year.
Page 4
ELHT&Me Accounts 2020-21
Notes to the Accounts
Accounting policies cont.
2.11 Liability recognition
The funds held on trust accounts are prepared in accordance with the accruals concept. Liabilities are recognised as soon as there is a legal or constructive obligation committing the charity to pay out resources.
- 2.12 Governance costs
Governance costs comprise of costs incurred in the governance of the charity. These costs relate to the independent examination.
- 2.13 Grants with performance conditions
Where the charity gives a grant with conditions for its payment being a specific level of service or output to be provided, such grants are only recognised in the SOFA once the recipient of the grant has provided the specified service or output.
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2.14 Grants payable without performance conditions
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These are only recognised in the accounts when a commitment has been made and there are no conditions to be met relating to the grant which remain in the control of the Charity.
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2.15 Support costs
Support costs include central functions and have been allocated to funds on a basis of the average fund balances over the year.
- 2.16 Fixed assets for use by charity
The Trust has no tangible or intangible assets.
2.17 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 opening market value (or date of purchase if later). Unrealised gains and losses are calculated as the difference between opening market value and closing market value for the year. Gains and losses are allocated to funds based on the average fund balance for the year.
2.18 Investments
Investments quoted on a recognised stock exchange are valued at market value at the year end.
- 2.19 Stocks and work in progress
These are valued at the lower of cost or market value.
2.20 Structure of funds
Where there is a legal restriction on the purpose to which a fund may be used, the fund is classified in the accounts as a restricted fund. Funds where the capital is held to generate income for charitable purposes and cannot itself be spent are accounted for as endowment funds. Other funds are classified as unrestricted funds.
2.21 Trustee indemnity insurance
There is no Trustee indemnity insurance.
- 2.22 Loans or guarantees secured against assets of the Charity There are no loans or guarantees against assets of the Charity.
2.23 Related party transactions
East Lancashire Hospitals NHS Trust is considered a related party of the Charity since the Trust Board is the Corporate Trustee of the Charity. During the year none of the members of the Trust Board or parties related to them, undertook any material transactions with the Charity.
2.24 Leases
A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. All other leases are classified as operating leases. All Charity leases are operating leases, payments for which are recognised as expenditure on a straight-line basis over the lease term.
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ELHT&Me Accounts 2020-21
Notes to the Accounts
3 Analysis of Income
| Analysis of Income | |||||
|---|---|---|---|---|---|
| 2020-21 | 2019-20 | ||||
| Unrestricted | Restricted | ||||
| Funds | Funds | Total | Total | ||
| £'000 | £'000 | £'000 | £'000 | ||
| Income from donation and legacies | |||||
| Donations * | 607 | 0 | 607 | 692 | |
| Legacies | 28 | 0 | 28 | 1 | |
| Grants | 198 | 0 | 198 | 13 | |
| 833 | 0 | 833 | 706 | ||
| Income from other trading activities | |||||
| Income from training activities | 45 | 0 | 45 | 80 | |
| Other income | 71 | 0 | 71 | 143 | |
| 116 | 0 | 116 | 223 | ||
| Income from investments | |||||
| Investments listed on the London Stock Exchange | 48 | 0 | 48 | 67 | |
| Interest on cash/bank | 0 | 0 | 0 | 1 | |
| 48 | 0 | 48 | 68 | ||
| * Donations for 2020-21 include £244,000 of notional income for gifts in kind | received following the onset | ||||
| of the COVID-19 pandemic (2019-20: £nil). The corresponding notional expenditure | entry is shown in note | ||||
| 4 to these accounts. | |||||
| Analysis of Expenditure | |||||
| 2020-21 | 2019-20 | ||||
| Activities | |||||
| Undertaken | Support | ||||
| Directly | Costs | Total | Total | ||
| £'000 | £'000 | £'000 | £'000 | ||
| Expenditure on raising funds | |||||
| Investment Management and Admin Fees | 14 | 0 | 14 | 7 | |
| 14 | 0 | 14 | 7 | ||
| Expenditure on charitable activities | |||||
| Fund raising expenses | 31 | 4 | 35 | 11 | |
| Gifts in kind | 244 | 29 | 273 | 0 | |
| Staff welfare/ training/ amenities | 61 | 7 | 68 | 114 | |
| Retirement gifts and long service awards | 32 | 4 | 36 | 37 | |
| Building and engineering | 0 | 0 | 0 | 13 | |
| Furniture and equipment | 45 | 5 | 50 | 83 | |
| Computer / office equipment | 7 | 1 | 8 | 28 | |
| Training | 52 | 6 | 58 | 61 | |
| Medical and surgical equipment | 757 | 89 | 846 | 535 | |
| Other expenditure | 136 | 16 | 152 | 131 | |
| 1,365 | 161 | 1,526 | 1,013 |
4 Analysis of Expenditure
Page 6
ELHT&Me Accounts 2020-21
Notes to the Accounts
5 Details of certain items of expenditure
5.1 Support Costs
| Finance and administration costs Banking charges Fees for examination or audit of the accounts |
2020-21 £'000 156 2 3 161 |
2019-20 £'000 147 3 2 |
|---|---|---|
| 152 |
5.2 Trustee expenses and remuneration
None of the members of the Trust Board were paid expenses or received remuneration during the year ended 31 March 2021 (2019-20: £nil) when acting on behalf of the Trust Board as Corporate Trustee of the Charity.
5.3 Staff costs
The Charity did not employ any staff or incur any staff costs during the year ended 31 March 2021 (2019-20: £nil). The costs asscociated with the administration of the charitable funds have been disclosed under support costs in accordance with the stated accounting policy of the Charity.
6 Operating leases
Operating lease expense - Minimum lease payments Future minimum lease payments due: - not later than one year - later than one year and not later than five years - later than five years |
2020-21 £'000 238 238 951 159 1,348 |
2019-20 £'000 79 238 951 397 |
|---|---|---|
| 1,586 |
Total future minimum lease payments relate to a surgery robot with the Charity entering into a seven year contract in December 2019.
7 Debtors - falling due within one year
Trade debtors Prepayments and accrued income Amounts due from East Lancashire Hospitals NHS Trust Other debtors |
31 March 2021 £'000 12 13 0 0 25 |
31 March 2020 |
|---|---|---|
| £'000 6 348 4 2 |
||
| 360 |
Page 7
ELHT&Me Accounts 2020-21
Notes to the Accounts
8 Creditors - falling due within one year
| 8 | Creditors - falling due within one year | ||
|---|---|---|---|
| 31 March | 31 March | ||
| 2021 | 2020 | ||
| £'000 | £'000 | ||
| Trade creditors | (2) | 0 | |
| Amounts due to East Lancashire Hospitals NHS Trust | (41) | 0 | |
| Accruals and deferred income | (180) ## | (176) | |
| (223) | (176) | ||
| 9 | Investment assets | ||
| 9.1 | Fixed assets investments |
| Fixed assets investments | ||
|---|---|---|
| 2020-21 | 2019-20 | |
| £'000 | £'000 | |
| Market value at 1 April | 1,758 | 1,905 |
| Add: additions to investments at cost | 842 | 315 |
| Less: disposals at carrying value | (1,136) | (311) |
| Add: net gain / (loss) on revaluation | 173 | (135) |
| Investment cash | 52 | (16) |
| Market value at 31 March | 1,689 | 1,758 |
| Analysis of investments | ||
| 2020-21 | 2019-20 | |
| £'000 | £'000 | |
| Investments listed on a recognised stock exchange or held in common | ||
| investment funds, open ended investment companies, unit trusts or | ||
| other collective investment schemes | 1,609 | 1,905 |
| Other investments | 80 | (147) |
| Market value at 31 March | 1,689 | 1,758 |
9.2 Analysis of investments
9.3 Material investment holdings
Material investment holdings are holdings with a market value of more that 4% of the total market value of investments as at 31 March 2021, which is approximately £68,000 (31 March 2020: £70,000).
| 2020-21 | 2019-20 | |||
|---|---|---|---|---|
| Market | Market | |||
| Investment | Holding | Value | Holding | Value |
| £'000 | £'000 | |||
| Muzinich Funds GBL Tactical Credt HGD | 583 | 61 | 1,153 | 111 |
| PIMCO Global Advis | 0 | 0 | 8,406 | 81 |
| Ishares II Plc | 9,772 | 134 | 15,944 | 235 |
| BNY Mellon FD MNGR GBL Dynamic | 62,096 | 61 | 123,513 | 116 |
| Vanguard Funds Plc | 972 | 53 | 2,629 | 106 |
| LXYOR INTL | 0 | 0 | 519 | 78 |
| Twentyfour AM Corporate Bond | 798 | 83 | 798 | 79 |
| BNY Mellon FD MNGR Asian Inc | 58,829 | 69 | 38,500 | 40 |
| Robeco | 815 | 87 | 0 | 0 |
| Ishares Physical | 4,353 | 105 | 0 | 0 |
| Ishares II USD | 15,010 | 80 | 0 | 0 |
Page 8
ELHT&Me Accounts 2020-21
Notes to the Accounts
10 Related party transactions
East Lancashire Hospitals NHS Trust is considered a related party of the Charity since the Trust Board is the Corporate Trustee of the Charity. However, responsibility for the monitoring and approval of activities relating to charitable fund raising and the uses to which charitable funds are applied has been delegated by the Trust Board to the Charitable Funds Committee.
The transactions with the Trust relate to support costs, as disclosed in note 5 to these accounts with details of debtors and creditors given in notes 7 and 8 respectively. During the year, none of the members of the Charitable Funds Committee or parties related to them, undertook any material transactions with the Charity.
11 Endowment, restricted income funds & major fund movements
11.1 Restricted Funds held
MD01 Elsie Metcalfe Cancer R RBTH For the treatment of cancer patients at RBTH NQ09 Thomas Egan Physiotherapy R RBTH Legacy for the general use of Physiotherapy at RBTH PT01 Godfrey Morris Pathology R RBTH For the benefit of Pathology Service BRI PT02 Harold Wardley Pathology R RBTH For the benefit of Pathology Service BRI SD02 Chemo Unit - Rosemere R RBTH For the Chemotherapy Unit WC02 Childrens Ward Bgh M Airey Legacy R RBTH General use heart and lung unit at RBTH WC07 H Eastwood Childrens Respiratory R ELH Specifically for Children with Breathing Difficulties X131 PCH General Purpose R PCH General purpose of PCH RBTH Royal Blackburn Hospital ELH East Lancashire Hospitals NHS Trust PCH Pendle Community Hospital
11.2 Transfer between funds
The balance on the administration fund of -£127,000 (2019-20: -£144,000) has been transferred to the Trust General Fund.
The cost for the surgery robot lease for 2019-20 of £79,000 has been transferred to the ELHT Robotic Surgery Fund from the Trust General Fund.
Page 9
ELHT&Me Accounts 2020-21
Notes to the Accounts
11.3 Movements of major funds
Major funds are funds with a balance of £25,000 or more.
| Fund Pharmaceutical Directorate Pharmacy Endowment Staff Gym Trust General Alan Shorrock Legacy Diabetes DCS General Purpose ICG General Purpose ELHT Cardiac Training Dr Newsomes Leukemia ELHT Robotic Surgery Ophthalmology General Purpose Maternity General Purpose General NICU Fetal Medicine (Mr Maher) ELHT Lottery Distribution Victoria Nurses Assistance CCH General Purpose Haem & Chemo Unit BGTH Maternity General Purpose Other Total |
1 April Income Expenditure Transfers Gains & 31 March 2020 losses 2021 £'000 £'000 £'000 £'000 £'000 £'000 77 1 (22) 0 0 56 26 0 (3) 0 0 23 76 0 (17) 0 0 59 477 746 (895) 48 0 376 146 0 0 0 0 146 45 0 (3) 0 0 42 36 0 0 0 0 36 45 0 (32) (3) 0 10 40 1 (8) 0 0 33 55 5 0 0 0 60 476 0 (238) (79) 0 159 46 2 (38) 0 0 10 39 25 (4) 0 0 60 100 26 (38) 0 0 88 17 9 0 0 0 26 54 71 (52) 0 0 73 48 0 (7) 0 0 41 54 0 0 0 0 54 31 1 (27) 0 0 5 39 25 (4) 0 0 60 87 85 (152) 34 194 248 |
|---|---|
| 2,014 997 (1,540) 0 194 1,665 |
Page 10
Independent Examiner’s Report to the Trustees of ELHT&Me
I report on the financial statements of ELHT&Me for the year ended 31 March 2021, which are set out on pages 1 to 10.
Respective responsibilities of trustees and examiner
The charity’s trustees are responsible for the preparation of the financial statements. The charity’s trustees consider that an audit is not required for this year under section 144(2) of the Charities Act 2011 (the 2011 Act) and that an independent examination is needed.
It is my responsibility to:
-
examine the financial statements under section 145 of the 2011 Act;
-
follow the procedures laid down in the general Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act; and
-
state whether particular matters have come to my attention.
This report, including my statement, has been prepared for and only for the charity’s trustees as a body. My work has been undertaken so that I might state to the charity’s trustees those matters I am required to state to them in an independent examiner’s report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body for my examination work, for this report, or for the statements I have made.
Basis of independent examiner’s report
My examination was carried out in accordance with the general Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the financial statements presented with those records. It also includes consideration of any unusual items or disclosures in the financial statements, and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently no opinion is given as to whether the financial statements present a ‘true and fair view’ and the report is limited to those matters set out in the statement below.
Independent examiner’s statement
In connection with my examination, which is complete, no matters have come to my attention which give me reasonable cause to believe that in any material respect:
-
accounting records were not kept in respect of ELHT&Me in accordance with section 130 of the 2011 Act; or
-
the financial statements do not accord with those records; or
-
the financial statements do not comply with the applicable requirements concerning the form and content of financial statements set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the financial statements give a ‘true and fair’ view which is not a matter considered as part of an independent examination.
I have no concerns and have come across no other matters in connection with the examination to which, in my opinion, attention should be drawn in order to enable a proper understanding of the financial statements to be reached.
Nicola Wakefield (Jan 27, 2022 11:26 GMT)
Nicola Wakefield Mazars LLP One St Peters Square Manchester M2 3DE
Date: Jan 27, 2022