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2022-03-31-accounts

ELHT&WJ NHS your local t￿£5 hospital charity Trust Charitable Funds Annual Report 2021-22 cpbwN - PAINTS T&FINK ..YCII AbJD

Contents

Chairman’s Report .................................................................................................. 3 Foreword from the Non-Executive Director and Charity Committee Chairman .......... 4 Objectives and Activities ........................................................................................... 5 Our Purpose ............................................................................................................. 5 Achievements and Performance ............................................................................... 6 Equipment ............................................................................................................... 7 Health and Wellbeing .............................................................................................. 8 Environment ............................................................................................................ 9 Our Amazing Supporters ........................................................................................ 10 Plans for Future Periods .......................................................................................... 11 Financial Review ..................................................................................................... 12 Investment Strategy and Policy ............................................................................... 14 Risk Management .................................................................................................. 15 Reserves Policy ....................................................................................................... 15 Structure, Governance and Management ............................................................... 16 Director Recruitment, Appointment, Induction and Training ................................... 17 Committee Membership ........................................................................................ 18 Declaration ............................................................................................................ 19 Reference and Administrative Details ..................................................................... 19

Chairman’s Report

As Chairman of the East Lancashire Hospitals NHS Trust, the sole corporate trustee of the Trust’s charity, ELHT&Me, I am pleased to present the Charity’s Annual Report for the period 01 April 2021 to 31 March 2022.

The charity is dedicated to advancing and enhancing care at East Lancashire Hospitals NHS Trust. We have continued to support our hospital teams’ response to the ongoing COVID-19 pandemic, while simultaneously pressing forward with key developments to further support the provision of safe, personal and effective care. Our dedicated colleagues, who wholeheartedly embody our vision, values, behaviours and goals, have made this possible.

While 2021–22 began with a phased easing of lockdown measures, it was not long before the emergence of the Omicron variant tightened them again. Even though all government-mandated COVID-19 restrictions had been lifted before the end of the year, our hospitals had no time to draw breath. Facing increasing pressure to manage the backlog of cases delayed by the pandemic, we knew it was vital to use our resources to support colleagues, including funding a variety of roles, spaces and services dedicated to improving the wellbeing of our colleagues.

We are very grateful to our supporters – you have been exceptional this year, supporting the charity and its work at the most critical time, with donations, legacies, volunteering or in other ways to show how much you care. As a result, we have continued to fund all the commitments made, and completed the year well placed to continue our work transforming the lives of local community from conception to end of life.

I would like to pay a special tribute to the Charity Team in these trying times of Covid. They have applied themselves with commitment and determination to confront the challenging circumstances they have found themselves in and are to be congratulated. As a Board, we can be confident that our charity will continue to flourish and to serve the community regardless of what difficulties we encounter.

I look forward to seeing the positive impact of the charity’s support, made possible by the hard work and generosity of our volunteers and donors, for colleagues and patients at East Lancashire hospitals over the coming year.

As many colleagues will know, I am leaving the Trust to take up another role at the Northern Care Alliance. I am quite sure that the impact of your work will continue, and I wish you all the best’.

Professor Eileen Fairhurst Chairman

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Foreword from the Non-Executive Director and Charity Committee Chairman

This reporting year has been an extraordinary year for everyone living in the UK. The pandemic touched ever element of life for our colleagues, patients and our local communities. East Lancashire Hospitals NHS Trust has been, and continues to be, at the front line, working with partner organisations and residents, finding ways to succeed and always putting patients and their families first. East Lancashire Hospitals NHS Trust’s colleagues and volunteers worked tirelessly, and we are incredibly proud of their contribution both in our hospitals and out in the communities, to ensure that we continue to provide safe, personal and effective care, despite all the challenges.

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’.

As a public benefit entity, the main charitable activities of the Charity are to fund

The trustees have considered the Charity Commission’s guidance on public benefit when reviewing the Charity’s aims and objectives and in planning future activities and setting the grant making policy for the year.

To achieve our aims and objectives ELHT&Me will actively seek and apply for grants, become front facing through the charity hub creation at Royal Blackburn Teaching Hospital and increase corporate relations. The charity will also design and deliver large scale events whilst establishing legacies to generate income.

Our Purpose

Our hospitals are here for everyone, saving the lives of the people you love. Our hospitals are at the heart of all our work.

ELHT&Me’s purpose is to support East Lancashire Hospitals NHS Trust to enhance the experience of patients, families, colleagues and the wider community served through our five hospitals and community services, beyond that achieved by routine NHS funding. ELHT&Me supports the strategic priorities of East Lancashire Hospitals NHS Trust in providing the best possible healthcare for its combined population of approximately 530,000. From the smaller things, like providing music on wards, to larger projects, such as funding state-ofthe-art medical equipment, ELHT&Me is here to make a positive difference.

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5

Achievements and Performance

ELHT&Me is the official charity for the five hospitals that make up East Lancashire Hospitals NHS Trust – Royal Blackburn and Burnley General Teaching Hospitals and community hospitals Clitheroe, Pendle and Accrington Victoria.

ELHT&Me is immensely proud to have been able to play a pivotal role in supporting NHS, patients and wider communities throughout the year 2021–2022; this could not have been achieved without the brilliant support from all of the donors, fundraisers and partners and supporters of our charity. This has enabled us to support a wide range of important projects throughout the year.

The COVID-19 pandemic shone a spotlight on the NHS in a way never seen before. As stories of the bravery and commitment of NHS colleagues were shared across mainstream and social media, our role as a local NHS charity came to the fore. While the public praised our healthcare professionals as heroes we were there, providing support for them, every step of the way. Focusing on improving people’s wellbeing demonstrations our passion to enhance the existing provision of facilities, research and treatments for patients in hospital. Whether young or old, as outpatients or staying on wards, patients and their families are at the heart of our care. Importantly, as an NHS charity we are also in a truly unique position to be able to work directly with frontline NHS teams. This means we can provide the right support at the right time and in the right way to help and support them to continue the vital work they do.

The Charity helps transform our hospitals, funding the very latest medical equipment, innovative research and specialist training for clinical colleagues. Fundraising, donations and gifts in wills also help to improve the hospital environment for patients and our colleagues who care for them, making wards, waiting rooms, colleague areas and hospital spaces more welcoming and comfortable. The charity also supports the wellbeing of hospital colleagues – providing rest areas, drinks facilities and other simple enhancements. ELHT&Me works across the whole organisation, with every ward, service and department able to benefit from the positive impact of charitable support. This is all thanks to thoughtful and generous groups and individuals who donate to make a difference in their local community.

Equipment

Helping provide the best possible care for patients is at the heart of what we do. While the NHS provides essential equipment and facilities, we are here to provide the added extras that truly enhance the experience of patients at our hospitals. RITA, which stands for Reminiscence Interactive Therapy Activities, is an innovative, evidence-based, state-of-the-art digital therapy system which allows patients to use apps, games and other leisure activities as part of their hospital recovery. Used primarily for our elderly patients with cognitive impairments, such as dementia, the user-friendly technology is proving extremely popular across East Lancashire Hospitals Trust and has shown to be effective in calming distressed or anxious patients.

The early pregnancy unit supports women experiencing complications of early pregnancy therefore the use of ultrasound scanning is absolutely essential for the service to reassure patients that their pregnancy is developing as it should be, but also diagnoses complications that need urgent medical attention. Without the amazing new ultrasound machines the unit wouldn’t be able to provide safe personal effective care to our patients.

These are just examples of how the charity can greatly enhance areas of the hospital by funding additional items over and above core NHS funding and/ or equipment with a higher specification and increased functionality. The charity has also funded specialist beds, chairs, shower chairs, birthing beds which, while they seem small enhancements, all have the potential to vastly improve the treatment and care of our patients.

Hera W9 ultrasound unit with probes

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Health and Wellbeing

Given the extraordinary pressures on the NHS and the significant impact of the pandemic on colleagues, ELHT&Me supported colleagues across all sites in a number of new and creative ways. Initiatives include the refurbishment of quiet room spaces, colleagues’ meals and entertainment at Christmas, recognition for nurses and midwives as part of International Nurses and Midwives Day, celebrations of thanks to our emergency departments and long service awards ceremonies as a thank you for their commitment and dedication.

In January 2021, the Duke and Duchess of Cambridge were welcomed at Clitheroe Community Hospital, as they came to speak with colleagues about their incredible contributions caring for patients throughout the COVID-19 pandemic.

In their role as Royal Patrons for independent charity, NHS Charities Together, they heard how ELHT&Me helped to support exhausted colleagues at the Trust, including funding a new therapy puppy, Alfie, who was introduced during their visit.

Environment

In 2021–22 we have supported some fantastic projects that enhance the patient and family environment. Projects include the refurbishment of dedicated family rooms and wards, the installation of bespoke dignity screens, wall art and ambient lighting systems. Charity funding has ensured patients have access to devices such as DAB radios, televisions and iPads. Over the past year, these devices have been even more important given the visitor restrictions and the sense of isolation felt by patients.

Our aim is to make hospital stays more comfortable and less daunting for patients – young and old alike – by improving facilities and equipment at East Lancashire Hospitals.

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Our Amazing Supporters

The last two years have seen many in our community and beyond come together to show their support of the NHS by raising funds for ELHT&Me. The fundraising team has been truly privileged to hear from individuals, groups and businesses who want to show their appreciation of NHS colleagues during its toughest of years.

Plans for Future Periods

To further deliver our strategy we will increase our level of fundraising to achieve our target that has not been exceeded previously. We will become front facing via Hub creation at Royal Blackburn Teaching Hospital, develop new fundraising events and activities and build on corporate relations with legacy gifting a focus.

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Financial Review

Annual review of income and expenditure

The principal source of funding for the charity is income from donation 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.

Through its membership of NHS Charities Together, the Charity was successful in its applications for grant funding totalling £209,000 for the health and wellbeing of staff.

£171,000 was also received from the Mackenzie Medical Centre charity to establish two funds for clinical educational purposes.

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Analysis of income 2021–22 2020–21
£000 £000
Income from donations and legacies
Donations 581 607
Legacies 0 28
Grants 211 198
792 833
Income from donations and legacies
Income from training activities 103 45
Other income 65 71
168 116
Income from investments
Investments listed on the London Stock Exchange 36 48
Interest on cash/bank 0 0
36 48
Total 996 997
----- End of picture text -----

Analysis of expenditure 2021–22
£000		 2020–21
£000
Expenditure on raising funds
Investment management and administration fees
Expenditure on charitable activities
Gifts in kind
Staff welfare/training/amenities
Retirement gifts and long-service awards
Furniture and equipment
Training
Medical and surgical equipment
Other expenditure
Total		 9
9
17
90
68
17
58
391
161
802
811		 14
14
273
68
36
50
58
846
231
1,526
1,540

When net gains on investments of £107,000 are taken into account, fund balances have increased by £292,000 in 2021–22 to £1,957,000, £1,715,000 of which is unrestricted with £242,000 held in designated funds.

The market value of the Charity’s investment portfolio as at 31 March 2022 was £1,785,000, £1,692,000 of which is managed by Charity Investment Managers. The performance of these funds was 6.1% above FTSE 100 and British Government Securities (BGS) Benchmark and the £31,000 of related investment income equates to a gross yield of 1.91%.

The Charitable Funds Committee aims to turn over the majority of charitable funds, excluding specific long-term legacies, once every three years.

Total expenditure for 2021–22 of £811,000 compares to £1,540,000 in the previous financial year. At £391,000 expenditure on medical and surgical equipment representing the largest use of charitable funds, including £178,000 relating to lease payments on two robotic surgical systems used by the Trust.

The Charity entered into a seven-year contract for these two systems in December 2019, which represented the principal risk faced by the Charity. However, with the Trust having secured funding for the remaining contract term, the contract has been novated to the Trust with effective from 1 December 2021 and so no longer represents a risk to the Charity.

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Investment Strategy and Policy

Risk Management

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.

Since the Charity’s key systems are designed and implemented by East Lancashire Hospitals NHS Trust, the Charity therefore benefits from the Trust’s robust internal control and risk management framework.

Where significant risks and uncertainties are identified for the Charity, they are considered at meetings of the Charitable Funds Committee, together with mitigating actions.

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.

Income and expenditure is monitored by the Charitable Funds Committee as part of the risk management process to avoid unforeseen calls on reserves and to ensure that the Charity is well-positioned to meet its objectives throughout the year.

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

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 as reserves, which include:

For these reasons, the Charity holds reserves at a minimum level of £500,000.

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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 Charity 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 NonExecutive 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.

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Committee Membership

The members of the Trust Charitable Funds Committee for 2021–22 were:

The Members of the Corporate Trustee (Board) for 2021–22 were:

Declaration

The Corporate Trustee declares that it has approved the Annual Report of ELHT&Me for 2021–22.

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

Charities Charity 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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ELHT&Me

Royal Blackburn Teaching Hospital Haslingden Road Blackburn Lancashire BB2 3HH Telephone 01254 732140 Email fundraising@elht.nhs.uk www.elht.nhs.uk/charity @ELHTandMe

Charity registration number 1050478

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2020
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Annual Accounts – Audited FOR THE YEAR ENDED 31st March 2022

Charity Registration Number 1050478

ELHT&Me

ELHT&Me Accounts 2021-22

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 2021-22

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:

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 11 January 2023 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 2021-22

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 income / (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
619
173
792
168
0
168
36
0
36
823
173
996
(9)
0
(9)
(787)
(15)
(802)
(796)
(15)
(811)
55
52
107
82
210
292
0
0
0
82
210
292
1,633
32
1,665
1,715
242
1,957
2021-22		 2020-21
Total
£'000
833
116
48
997
(14)
(1,526)
(1,540)
194
(349)
0
(349)
2,014
1,665

Page 1

ELHT&Me Accounts 2021-22

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 assets
Total assets less current liabilities
Total net assets
The funds of the Charity:
Restricted income funds
Unrestricted funds
Total Charity funds		 31 March
2022
£'000
1,785
128
224
352
(180)
172
1,957
1,957
242
1,715
1,957		 31 March
2021
£'000
1,689
25
174
199
(223)
(24)
1,665
1,665
32
1,633
1,665

The notes at pages 4 to 10 form part of these accounts.

Approved by order of the Corporate Trustee on 11 January 2023 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 2021-22

Statement of Cashflows

Note 2021-22 2020-21 2020-21
£'000 £'000
Cash flows from operating activities:
Net cash provided by (used in) operating activities 37 (240)
Cash flows from investing activities
Dividends and interests from investments 3 36 48
Purchase of investments (196) (842)
Proceeds from the sale of investments 173 1,136
Net cash inflow from investing activities 13 342
Net cash inflow before financing 50 102
Cash flows from financing activities 0 0
Net cash outflow from financing activities 0 0
Change in cash and cash equivalents in the 50 102
reporting period
Cash and cash equivalents at beginning of the year 174 72
Cash and cash equivalents at end of the year 224 174
Reconciliation of net income/(expenditure) to net cash flow from operating activities
Net income/(expenditure) for the reporting period (as per the 292 (349)
statement of financial activities)
Adjustments for:
(Gains) on investments (73) (225)
Dividends and interest from investments 3 (36) (48)
(Increase) / decrease in debtors 7 (103) 335
Increase / (decrease) in creditors 8 (43) 47
Net cash provided by (used in) operating activities 37 (240)

Page 3

ELHT&Me Accounts 2021-22

Notes to the Accounts

1 Basis of preparation

1.1 Basis of accounting

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:

1.2 Going Concern

The Trustees have considered all information available to them and are of a view that there are sufficient reserves to secure the immediate future of the Charity for the next 12 to 18 months. On this basis, the charity continues as a going concern.

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 binding b) probability - when receipt of the income is probable; and

c) measurement - when the monetary value can be measured with sufficient reliability.

2.2 Income with related expenditure

Where income has related expenditure (as with fundraising or contract income) the income and the 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

Incoming resources 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

These are 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 incoming resources when receivable.

2.7 Legacies

Legacies are accounted for as incoming resources 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 incoming resources (with an equivalent amount in resources expended) where the benefit to the charity is reasonably quantifiable, measurable and material. The value placed on these resources 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 2021-22

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 costs incurred in the governance of the charity. These costs relate to the independent examination.

2.13 Grants with performance conditions

Where the charity awards 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.

2.14 Grants payable without performance conditions

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.

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.

2.25 Critical accounting judgments and key sources of estmation uncertainty

The Trustees have not made any significant judgements in the process of applying the accounting policies and there are no areas of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities

Page 5

ELHT&Me Accounts 2021-22

Notes to the Accounts

3 Analysis of Income


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		 Unrestricted
Funds
Restricted
Funds
Total
£'000
£'000
£'000
408
173
581
0
0
0
211
0
211
619
173
792
103
0
103
65
0
65
168
0
168
36
0
36
0
0
0
36
0
36
2021-22		 2020-21
Total
£'000
607
28
198
833
45
71
116
48
0
48
* Donations for 2021-22 include £13,000 of notional income for gifts in kind received (2020-21:
The corresponding notional expenditure entry is shown in note 4 to these accounts.		 £244,000).
Analysis of Expenditure
Expenditure on raising funds
Investment management and admin fees
Expenditure on charitable activities
Fund raising expenses
Gifts in kind
Staff welfare / training / amenities
Retirement gifts and long service awards
Building and engineering
Furniture and equipment
Printing and stationary
Computer / office equipment
Training
Medical and surgical equipment
Other expenditure		 Activities
Undertaken
Directly
Support
Costs
Total
£'000
£'000
£'000
9
0
9
9
0
9
35
10
45
13
4
17
70
20
90
53
15
68
4
1
5
13
4
17
11
3
14
7
2
9
45
13
58
304
86
390
69
20
89
624
178
802
2021-22
2020-21
Total
£'000
14
14
35
273
68
36
0
50
0
8
58
846
152
1,526

4 Analysis of Expenditure

Page 6

ELHT&Me Accounts 2021-22

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		 2021-22
£'000
174
1
3
178		 2020-21
£'000
156
2
3
161

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 2022 (2020-21: £nil) when acting on behalf of the of the Trust Board as a 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 2022 (2020-21: £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		 2021-22
£'000
178
0
0
0
0		 2020-21
£'000
238
238
951
159
1,348

The minimum lease payments relate to two surgical robots which were funded until the 30 November 2021 by the Charity.

7 Debtors - falling due within one year


Trade debtors
Prepayments and accrued income		 31 March
2022
£'000
107
21
128		 31 March
2021
£'000
12
13
25

Page 7

ELHT&Me Accounts 2021-22

Notes to the Accounts

8 Creditors - falling due within one year


Trade creditors
Accruals and deferred income
9
Investment assets
9.1
Fixed assets investments
Add: additions to investments at cost
Less: disposals at carrying value
Add: net gain / (loss) on revaluation
Investment cash
9.2
Analysis of investments
Amounts due to East Lancashire Hospitals NHS Trust
Market value at 31 March
Investments listed on a recognised stock exchange or held in common
Market value at 1 April
Market value at 31 March
Other investments		 31 March
2022
31 March
2021
£'000
£'000
(3)
(2)
(108)
(41)
(69) ##
(180)
(180)
(223)
2021-22
2020-21
£'000
£'000
1,689
1,758
196
842
(173)
(1,136)
60
173
13
52
1,785
1,689
2021-22
2020-21
£'000
£'000
1,692
1,609
93
80
1,785
1,689		 31 March
2022
31 March
2021
£'000
£'000
(3)
(2)
(108)
(41)
(69) ##
(180)
(180)
(223)
2021-22
2020-21
£'000
£'000
1,689
1,758
196
842
(173)
(1,136)
60
173
13
52
1,785
1,689
2021-22
2020-21
£'000
£'000
1,692
1,609
93
80
1,785
1,689
(223)
2020-21
£'000
1,758
842
(1,136)
173
52
1,689
2020-21
£'000
1,609
80
1,689

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 2022, which is approximately £71,000 (31 March 2021: £68,000).

2021-22 2020-21
Market Market
Investment Holding Value Holding Value
£'000 £'000
Ishares II Plc 9,772 126 9,772 134
BNY Mellon FD MNGR GBL Dynamic 75,316 71 62,096 61
Twentyfour AM Corporate Bond 917 88 798 83
Robeco 852 86 815 87
Ishares Physical 3,657 105 4,353 105
Fidelity 10,697 74 10,697 62
BNY Mellon FD MNGR North American 51,091 77 51,091 62
Schroder 93,361 97 44,453 38
FIL INV SVCS 83,754 79 49,907 51
Ishares II USD 15,947 88 15,010 80
Muzinich Funds GBL Tactical Credt HGD 707 70 583 61

Page 8

ELHT&Me Accounts 2021-22

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

Fund Name *** Site ** Fund Purpose
Clinical Education Fund ELH For use by the Directorate of Education, Research and
Innovation(DERI).
R Jackson Fellowship Fund ELH For the education of non-medical professionals and their
students in ELHT and other health care employers in East
Lancashire.
Elsie Metcalfe Cancer Fund RBTH For the treatment of cancerpatients at RBH.
Thomas Egan PhysiotherapyFund RBTH Legacyfor thegeneral use ofphysiotherapyat RBH.
GodfreyMorris PathologyFund RBTH For the benefit of PathologyService BRI.
Harold WardleyPathologyFund RBTH For the benefit of PathologyService BRI.
Chemo Unit - Rosemere Fund RBTH For the Chemotherapyunit.
Childrens Ward Bgh M AireyLegFund RBTH General use heart and lungunit at RBH.
H Eastwood Childrens RespFund ELH Specificallyfor children with breathingdifficulties.
PCH General Purpose Fund PCH Generalpurpose of PCH.

ELH East Lancashire Hospitals NHS Trust PCH Pendle Community Hospital

11.2 Transfer between funds

The administration support costs for 2021-22 of £89,000, (2020-21: £127,000) have been apportioned to the individual funds in accordance with Note 2.15 .

Page 9

ELHT&Me Accounts 2021-22

Notes to the Accounts

11.3 Movements of major funds

Major funds are funds with a balance of £25,000 or more.

Fund 1 April
Income
Expenditure
Transfers
Gains &
31 March
2021
losses
2022
£'000
£'000
£'000
£'000
£'000
£'000
56
2
(6)
0
2
54
23
15
(6)
0
1
33
59
1
(29)
0
1
32
376
235
(174)
(159)
16
294
0
212
(42)
155
5
330
146
2
(13)
0
4
139
42
1
(8)
0
1
36
36
1
(3)
0
1
35
0
141
(6)
0
2
137
0
30
(3)
0
48
75
33
2
(5)
0
1
31
24
96
(33)
0
2
89
60
1
(7)
0
2
56
159
7
(167)
1
0
0
0
69
(15)
0
1
55

5
0
0
33
1
39
60
12
(63)
0
1
10
88
14
(47)
0
2
57
26
8
(5)
0
1
30
73
67
(49)
0
2
93
41
1
(7)
0
1
36
54
1
(37)
0
1
19
60
12
(63)
0
1
10
244
66
(23)
(30)
10
267
Pharmaceutical Directorate
Pharmacy Endowment
Staff Gym
Trust General
Nhs Charities Together
Alan Shorrock Legacy
Diabetes
Dcs General Purpose
Clinical Education
Ef - R Jackson Fellowship
ELHT Cardiac Training
Life Support Training Rbh
Dr Newsomes Leukemia
ELHT Robotic Surgery
Rbh Larascopic
Community Neurodevelopmental
Maternity General Purpose
General NICU
Fetal Medicine
ELHT Lottery Distribution
Victoria Nurses Assistance
CCH General Purposes
Maternity General Purpose
Other funds
Total 1,665
996
(811)
0
107
1,957

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 2022, 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:

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:

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 20, 2023 09:27 GMT)

Nicola Wakefield Mazars LLP One St Peters Square Manchester M2 3DE

Date: Jan 20, 2023