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2024-03-31-accounts

Annual Report 2023/2024 INHS|

Annual Report & Accounts 2023/2024

Supporting world class treatment, research and outstanding care

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Reg. Charity No. 1051194
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Annual Report 2023/2024

Contents

1. Foreword by Chair of Charitable Funds Committee 3

2. Who we are 2. Who we are 4
3. How to support us 3. How to support us 5
4. Your support and our achievements and 4. Your support and our achievements and 6
performance
5. The difference you made 5. The difference you made 7
6. Our Future Plans 6. Our Future Plans 10
7. Structure, Governance and Management 7. Structure, Governance and Management 11
Structure 12
Risk Management and Internal Controls 12
Trustee and Advisers and Contact Details for 14
the Charity
8. Financial Review 8. Financial Review 16
Going Concern 16
Reserves Policy 17
Investment Policy 17
Corporate Trustee Responsibilities Statement 18
Independent Auditor’s report 19
9. Financial Statements 9. Financial Statements 22
Consolidated Statement of Financial Activities for
the year ended 31 March 2024
22
Consolidated Balance Sheet as at 31 March 2024 23
Parent Balance Sheet as at 31 March 2024 24
Consolidated Cash Flow Statement for the year 25
ended 31 March 2024
10. Notes to the Financial Statements 10. Notes to the Financial Statements 26

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Annual Report 2023/2024

1. Foreword by Chair of Charitable Funds Committee

Welcome to Lancashire Teaching Hospital Charities annual report for 2023/24.

I am proud to welcome .r Af\4 you to this annual review, looking back over another successful year for Lancashire Teaching Hospitals Charity and its contribution to our hospitals, patients and staff.

During 2023/24, the Charity’s income was £627k, and we spent £565k on making a difference to the lives of patients and their families, as well as supporting a number of staff wellbeing projects. From funding LED Sky Ceiling Tiles to the refurbishment of a Delivery Suite for Women with Complex Pregnancy Needs, we make sure every penny raised makes a difference to the babies, children and adults who use our hospital services.

Over the past year the charity has worked hard to establish its calendar of events, as well as introducing a new charity abseil and Christmas themed Jingle Bell Jog, which will become regular features in our fundraising schedule. We had another great Cross Bay Walk in July, despite the blustery weather, raising £5,549 with 150 walkers crossing the 7-mile stretch from Arnside to Grange in support of our Children’s Fund and Baby Beat. We have also noticed an increase in supporter-led community events as awareness of the Charity, and what we do, continues to grow.

We were delighted to receive grants over the past year totalling £255k to fund a variety of charitable projects. The Brabners Foundation and The Medicash Foundation both funded an interactive mobile projector system whilst Risley Medical, Research and Charity Trust Fund made a grant towards butterfly bags for bereaved families of patients.

The support of our donors, fundraisers and volunteers has been unwavering, and we were delighted that the end of the 23-24 financial year saw us in a healthy place with regards to our charitable income.

Thank you, to all of our supporters, who have given generously throughout the year. The donations and legacies we receive are an invaluable source of funds used to purchase additional equipment and services, and support life-changing projects, that cannot be provided by core NHS funds.

Very best wishes,

Kate Smyth

Kate Smyth Charitable Funds Committee - Chair

Annual Report 2023/2024

2. Who we are

Lancashire Teaching Hospitals Charity is registered with the charity commission (registered number 1051194) and we are constituted under the NHS Charities - Corporate Trustee model (see section 7 for details).

The Charity exists to raise funds and receive donations for the benefits of the patients of Lancashire Teaching Hospitals NHS Foundation Trust. By securing donations, legacies and grants the Charity can provide the ‘icing on the cake’ to make a real difference for patients, their families and the staff who look after them.

Providing both general and specialist care for the benefit of 1.8m people across Lancashire and South Cumbria, Lancashire Teaching Hospitals NHS Foundation Trust is our key partner in fulfilling our charitable aims.

We welcome all support, as this allows us to invest in clinical excellence and outstanding care, as well as world class research. Please read on to find out more about what we do, what we have achieved and how we invest the money donated to us.

Our Aims and Objectives

Lancashire Teaching Hospitals Charity aims to enhance the services already provided by Lancashire Teaching Hospitals NHS Foundation Trust. Through raising new money and careful management of existing funds, the Charity can provide a public benefit by making grants to the Trust (and the other organisations it works with) to invest in world class research, treatment, and outstanding care. It does this by:

Grants from the Charity to the Trust are made in accordance with the Trust’s standing financial instructions as well as charity law, our constitution, and in accordance with the wishes of donors.

When considering where to focus our attention our corporate trustee’s board and, particularly, the members of the Charitable Funds Committee, have regard to the Charity Commission for England and Wales’s guidance on public benefit and what this means for the Charity.

In making grants, the Charity endeavours to reflect the wishes of patients and staff by directing funds towards areas they tell us are most in need.

Our plans are to continue to increase our level of fundraising to pre-pandemic levels whilst also increasing the opportunity for ‘Out of Hospital’ investment across the ICS region. Acting as lead charity for Lancashire and South Cumbria and working with NHS Charities Together we have continued to work with not-for-profit organisations to help transform out of hospital health care across the region.

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Annual Report 2023/2024

3. How to support us

The Charity would like to thank all that continue to support us during such unprecedented times. The donations you make really do make a difference to patient care and to staff in caring for them.

With many ways in which you can support your local and regional specialist Hospitals, such as running, swimming or cycling, knitting, singing or baking delicious cakes, your donations time or talents, make a world of difference to our patients and their loved ones, when they need it most.

Making a Donation

To make a donation please visit www.lthcharity.org.uk or call the fundraising team on 01772 528500.

Gifts in Memory

Each year we receive thousands of pounds from people who donate in memory of someone special who has sadly passed away. Donations such as these help us to improve patient comforts and buy equipment that will benefit other patients, allowing something positive to come from a sad personal loss.

Legacy Support

Gift Aid

Is the gift that keeps on giving, last year we claimed thousands of pounds in Gift Aid. If you are a UK tax payer and sign up for gift aid with us, we are able to claim an additional 25p for every £1 you donate.

Get in touch – we’d love to hear from you!

For information about Gift Aid, legacy donations and the many other ways you may wish to support, please visit www.lthcharity.org.uk email charity@lthtr.nhs.uk or call the fundraising team on 01772 528500.

Gifts left to the Charity in a Will provide a valuable income source allowing us to plan for the future and benefit as many patients as possible. Even the smallest gift in your will can have a lasting impact. During 2023/24 we received a total of £5k in legacy gifts.

Annual Report 2023/2024

4. Your support and our achievements and performance

We were delighted to see our calendar of fundraising events continue to grow in 23/24, with the charity introducing its very first Peel Tower Abseil event which saw 21 brave supporters abseiling a drop of 128ft in support of our Children’s Fund. We had an incredible day and raised over £3,776.

April also saw the Charity run its National Superhero Day fundraising initiative (28th April) for the second year running. The fundraising day encourages supporters across local nurseries, schools, community groups, and businesses to dress as their favourite superhero and donate towards our Children’s Fund. The day saw many supporters take part, including pupils from Penwortham’s Whitefield Primary School, helping to raise £1,005 for our Children’s Fund.

The Charity once again took part in the NHS Big Tea on 5th July, which this year marked the NHS’ 75th Birthday! The event was supported by NHS Charities Together and raised £2,098 on the day with many staff across the hospitals taking part as well as local café, Applestore Café at Wyresdale Park who raised a wonderful £1,274 towards this total.

Baby Beat’s annual Baby Loss Awareness Campaign and World Prematurity Day saw £2,742 raised from “<4 events including a a '* sponsored walk in Preston’s Avenham Park, raffle and the sale of remembrance ribbons and Wave of Light candles.

In December the Charity’s Jingle Bell Jog event went ahead for the first time, after being cancelled in 2022 due to snow and ice. The event was a big success which saw over 70 supporters take on a 1-mile, family friendly run at UCLan Sports Arena, raising over £1,000!

We have continued to develop our digital profile, whilst supporter stewardship and engagement remains at the heart of what we do, with a real focus on thanking supporters and promoting our work through our regular newsletter, e-newsletters and end-of-year Thank You mailer.

More details on our fundraising events and activities can be seen on our website www.lthcharity.org.uk

We had another great Cross Bay Walk in July, despite the blustery weather, raising £5,549 with 150 walkers crossing the 7-mile stretch from Arnside to Grange in support of our Children’s Fund and Baby Beat.

In August a 25-strong group of staff from our Renal Dialysis Unit raised a wonderful £5,847 walking the 11 miles from Chorley and South Ribble Hospital to the unit at Royal Preston Hospital.

September was a month of running for the Charity, with 20 adults and five children taking part in the Spar sponsored City of Preston 10k, raising an incredible £2,345 for our hospital charity and Baby Beat combined. Also in September, The Motor Neurone Disease Team for MND Research at Lancashire Teaching Hospitals NHS Foundation Trust raised an impressive £9,153 from their ninth annual walk for Motor Neurone Disease. The walk saw over 60 people walk the Guild Wheel – which is 21 miles around the outskirts of Preston, on Saturday 23rd September 2023.

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Annual Report 2023/2024

5. The difference you made

The Charity is only able to support the work of Lancashire Teaching Hospitals NHS Foundation Trust through the money it receives. We use this in furthering our charitable aims and objectives.

The following chart illustrates the breakdown of the £627k charitable income received during this financial year.

We were delighted to receive grants from different Trusts towards a variety of other charitable projects, including interactive LED ceiling tiles which were funded by grants received from the DJ Sidebottom/ Glasdon Charitable Programme, and The Shepherd Street Trust.

The Brabners Foundation and The Medicash Foundation both funded an interactive mobile projector system whilst Risley Medical, Research and Charity Trust Fund made a grant towards butterfly bags for bereaved families of patients.

We were able to fund a delivery suite for women with complex pregnancy needs with grants received from the DJ Sidebottom/Glasdon Charitable Programme, and The Duchy of Lancaster Benevolent Fund.

The Charity benchmarks fundraising activity with peers across the region and through the NHS Charities Together, membership monitoring comparative success of campaigns and overall fundraising cost to income ratios.

This year also saw retail trading income of £69k, (2022/23: £48k) which was made possible due to the tenacious support of the 25 Baby Beat Shop volunteers who continue their support year on year.

@@ Donations 25% Charitable activities 15% @ Corporate donations 4% @ Investments 4% @ Legacies 1% tC Trading activities 11% @ Grants 40%

Investment income of £28k, (2022/23: £16k) was received in the form of dividends and bank interest on funds not immediately required.

During 2023/24 total income received from donations and legacies came to £439k (2022/23: £1,139k) with corporate support ending the year at £25k (2022/23: £22k) and legacy income of £5k received (2022/23: £186k). The charity is also very grateful to the many businesses who gave gifts in kind totalling £38k (2022/23: £64k). Income raised by events and community fundraising groups totalled £82k (2022/23: £113k).

Charitable Trust activity is down this last financial year, with a total of £255k received (2022/23: £700k). This is the result of a large NHS Charities Together grant which was received in the previous financial year to support out of hospitals healthcare partnerships.

Annual Report 2023/2024

What we spent the money on

This year the Charity is delighted to report that it has approved 72 grant applications and spent a total of £480k, with investment in the charity’s objectives demonstrating the Charity’s continued support for patient wellbeing and its focus, through the Children’s Fund and Baby Beat, on the Women’s and Children division.

Of the total expenditure of £919k (2022/23: £1.378m), the amount spent on charitable activities, excluding support costs, was £480k (2022/23: £977k). Charitable activities spend covers a wide range of programmes from capital projects to medical equipment as well as additional training and rest areas for staff. Checks are in place to ensure that all expenditure is in line with the Trust's Standing financial instructions and in support of charitable objectives i.e., monies spent are used to purchase additional goods and services not normally provided by, or in addition to the normal NHS service. The Charitable Funds Committee keeps the spirit of public benefit at the forefront of its decision making.

Patient Environment & Wellbeing 83% Staff Education & Wellbeing 9% Research 3% Medical Equipment 5%

The chart shows our largest area of spend was on charitable activities.

Here are some of the ways in which donations have been used this year:

Mirrors for Laryngectomy patients (£100) to offer on Ward 3 at Royal Preston Hospital, so our laryngectomy patients can care for and clean their Laryngectomees. This is a vital part of their recovery, and patients cannot be discharged until they can complete

this. This was thanks to a donation from a previous laryngectomy patient.

New lease of life for patients thanks to Kidney Beam App (£3,477) funded on iPads for our Renal Department to use across seven dialysis units to allow patients receiving dialysis the opportunity to benefit from the Kidney Beam digital health and wellbeing resource - an interactive exercise and lifestyle management app, designed to improve the emotional and physical wellbeing of patients.

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Annual Report 2023/2024

New Soft Call Buzzers (£1,624) which enable MND patients with minimal or no hand function to call for assistance, often when they are also unable to verbalise. The new buzzers ensure patient safety, help to reduce anxiety, and allow for carers to leave the room. They can also be loaned to the wards when necessary.

Refurbishment of Ward 8 Parent’s Room (£10,522) at Royal Preston Hospital which was designed to provide parents with a break-out zone where they can take some time for themselves in a calm environment during their child’s time on the Children’s Ward. It has soft seating, a wall mural, frosted window and TV to give respite and a kitchen area with a sink, microwave, kettle, cutlery and crockery so parents can make a drink and simple meal.

Refurbishment of a Delivery Suite for Women with Complex Pregnancy Needs (£17,745) at Royal Preston Hospital which has helped to enhance the environment, provide a safe space for women who require obstetric intervention and additional monitoring, and make the room a beautiful space for women with complex pregnancy needs.

LED Sky Ceiling Tiles (£6,587.77) in the Paediatrics Emergency Department at Royal Preston Hospital, to distract youngsters undergoing clinical procedures, helping to provide a calm and tranquil environment, creating a better experience all round, which benefits both staff and parents or carers too.

The above highlight some of the items and projects funded by your donations.

All items purchased are in addition or above the NHS remit. Visit lthcharity.org.uk to see more about the items we fund.

Our fundraising practices

Members of Lancashire Teaching Hospitals Charity team support staff and donors both in the hospital and in the wider community to raise funds on behalf of the Charity. The Charity does not use external professional fundraisers or involve commercial participators. There have been no complaints about fundraising activity this year.

The Charity is signed up to the Fundraising Regulator’s Code of Fundraising Practice and is a member of NHS Charities Together. Fundraising staff receive support from and are invited to take part in NHS Charities Together training webinars as well as attend the Institute of Fundraising Conference - Northwest. All staff follow the Trust’s fundraising guidance policy and working practices are reviewed regularly to ensure compliance. They are also required to undertake relevant safeguarding mandatory training to help to recognise and protect vulnerable people. Volunteer fundraisers are given a full briefing and appropriate training before they are able to raise funds for the Charity and they also receive regular updates/reminders. Volunteer fundraisers are always supported and briefed fully with a fundraising handbook before they raise funds for the Charity.

All direct marketing is undertaken by the fundraising team to ensure that it is not unreasonably intrusive or persistent. In regard to contact made with supporters through direct marketing, we ensured that permission was requested and that all marketing material contained clear instructions on how a person can be removed from mailing lists.

Annual Report 2023/2024

6. Our Future Plans

As the year came to a close the Charity was again preparing to invest further in enhancing marketing so as to engage more support and increase awareness and income in order that it can continue to support and enhance health care services across the footprint of Lancashire Teaching Hospitals NHS Foundation Trust for the benefit 390,000 local people, as well as the 1.8m people who access our regional specialist services from across the ICS Lancashire and South Cumbria region.

By improving our communications, branding, and marketing we hope to create a compelling charity identity with a strong presence throughout the hospitals and the local community, enabling Lancashire Teaching Hospitals to be seen as a ‘charity of choice’ locally.

We also hope that improving our communications, branding, and marketing will help to build a ‘Hospital Charity Team’ that will influence organisational culture and help staff to view the Hospital Charity as their own - therefore engaging with fundraising more.

We will continue to monitor and review our plans, especially in the light of the ongoing war in Ukraine and cost of living crisis.

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Annual Report 2023/2024

7. Structure, Governance and Management

The Charitable Funds Committee works within the delegated powers granted to it by the Corporate Trustee who retain the right to amend delegated powers and terms of reference as appropriate. As part of its delegated powers, it is responsible for the following:

Structure

The Charity follows the NHS Corporate Trustee operational model with members of Lancashire Teaching Hospitals NHS Foundation Trust Board being appointed as its Corporate Trustee. The Corporate Trustee members are appointed upon their appointment to the Board of Directors of Lancashire Teaching Hospitals NHS Foundation Trust.

The overall management and decision-making of the Charity is delegated by the Corporate Trustee to the Charitable Funds Committee.

Charitable Funds Committee

The Charitable Funds Committee meet quarterly and has specific terms of reference; no business may be transacted at a meeting unless three Non-Executive Directors and one Executive Director, who must be the Finance Director (or nominated deputy), are present.

The Charitable Funds Committee is responsible for reviewing and managing its charitable funds ● To refer any matters arising to the Corporate in accordance with the Trusts’ Standing Financial Trustee. Instructions and its Scheme of Delegated Powers of Authority. The Committee is supported in doing so by the Head of Charities and operates within a framework with clear policies on investments, sponsorship, fundraising, expenditure and reserves. Authority to approve expenditure from funds is controlled through delegated limits. Expenditure Approval Required ~~ee eee~~ £25k + Approval also needed from Charitable Funds Committee £10k to £25k Approval also needed from Assistant Director of Finance £5k to £9,999 Approval also needed from Divisional Director Up to £5k Approval needed from fund advisors

Annual Report 2023/2024

The Fund Structure

Lancashire Teaching Hospitals Charity is governed by a single Trust Deed. Restricted funds are managed under the restrictions that were specified and are used in accordance with the restrictions imposed.

Unrestricted funds comprise of those funds which the Corporate Trustee has discretion to use for any purpose within the objects of the Charity. The trustee respects the wishes of the donors wherever possible, and all unrestricted funds are spent, as far as possible, in the optimum way to further the wider objectives of the Charity.

Connected Parties and Linked Charities

The Charity holds 100% of the share capital in Baby Beat Limited (Company Registration Number 03817502), a retail outlet based in the Sharoe Green Unit at Royal Preston Hospital. All net profits are donated to the Charity under the Gift Aid scheme and the company’s accounts have been consolidated with the Charity’s accounts this financial year.

The Charity is linked to the separately registered charity, The Rosemere Cancer Foundation. It was established with the same declaration of trust in November 1995 and shares the same Corporate Trustee. The Charity pools its investments with that of The Rosemere Cancer Foundation to form a single investment portfolio, resulting in greater efficiency in the management of the investments.

Risk Management and Internal Controls

Due to the close relationship between the Trust and the Charity the risk management process is embedded into that of the Trust’s assurance framework and risk management systems.

The Board of Directors of the Trust, who are also the Corporate Trustee, have adopted a formal risk management process to assess business risk and implement risk management strategies. Senior management and the trustee have:

A risk register has been prepared to assist in managing risk to which the Trust has been exposed. The risk register is monitored by the Trust’s Governance framework who request regular updates on any relevant action plans and ensure that all appropriate controls are in place or have been identified.

Wider networks

The Charity is one of over 230 NHS charities in England and Wales who are members of NHS Charities Together. As a member charity, we have the opportunity to discuss matters of common concern and exchange information and experiences, join together with others to lobby government departments and others, and to participate in conferences and seminars which offer support and education for our staff and members of the charitable funds committee.

As a member of NHS Charities Together, we are also eligible to apply for and receive grants from them.

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Annual Report 2023/2024

Principal risks and uncertainty facing the Charity

As part of the business planning exercise carried out during the year, the Charitable Funds Committee has considered the major risks to which the Charity is exposed. They have reviewed systems and identified steps to mitigate three risks that have been identified:

Future Levels of income

The Charity is reliant on donations to allow it to make grants to NHS bodies. If income falls, then the charity would not be able to make as many grants or enter into longer term commitments with the Trust.

The Committee mitigates the risk that income will fall by engaging with the Head of Charities. They regularly review the events calendar to understand what is working well and how things could be done better or, to consider what new events could be introduced.

The cost of living remains a significant pressure on many people’s lives. This is continuing to have an impact on the amount that people are able to donate to charity and is being closely monitored.

Fall in investment returns

The Charity generates additional income from investing its cash so a decline in market values resulting in the loss of investment income is considered to be a major financial risk.

This risk is mitigated by retaining expert investment managers and having a diverse portfolio that is regularly reviewed. The current category of risk for the portfolio is five (moderate). The Charity’s reserves and investment policies on page 17, are designed to ensure that no unnecessary risks are taken.

Financial challenges of the Trust

Lancashire Teaching Hospital NHS Foundation Trust is financially challenged and currently operating with a financial deficit.

The committee are aware of the financial challenges faced by the Trust and the Executives that sit on the committee are able to provide an insight on any potential changes to services, to ensure this does not have any negative impact on the charity.

Internal controls

The Corporate Trustee has overall responsibility for ensuring that the organisation operates an appropriate system of financial controls and otherwise to provide reasonable assurance that:

In this regard, the Corporate Trustee places reliance upon the Trust’s Audit Committee whose remit is to examine the effectiveness and appropriateness of the system of internal controls. This is achieved by:

The systems of financial control are designed to provide reasonable, but not absolute assurance against material misstatement or loss. These include:

Annual Report 2023/2024

Trustee and Advisers and Contact Details for the Charity

As the Charity operates under a Corporate Trustee model, the names of the directors are required to be disclosed:

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Name Responsibility Post From To
Silas Nicholls Chief Executive Officer 08/01/2024
Faith Button Interim Chief Executive Officer 01/10/2023 07/01/2024
Kevin McGee Chief Executive Officer 30/09/2023
Katie Foster-Greenwood Chief Operating Officer 12/08/2024
Emma Ince Interim Chief Operating Officer 10/06/2024 11/08/2024
Imran Devji Interim Chief Operating Officer 01/10/2023 09/06/2024
Faith Button Chief Operating Officer (Interim CEO during year as 16/02/2024
stated above)
David Stonehouse Interim Chief Finance Office 02/09/2024
Jonathan Wood Chief Finance Officer / Deputy Chief Executive 01/09/2024
Geraldine Skailes Chief Medical Officer
Sarah Cullen Chief Nursing Officer
Neil Pease Chief People Officer 01/12/2024
Nikki Latham Interim Chief People Officer 01/06/2023 30/11/2023
Karen Swindley Chief People Officer 31/05/2023
Stephen Dobson Chief Information Officer
Ailsa Brotherton Director of Continuous Improvement
Gary Doherty Director of Strategy and Planning
Naomi Duggan Director of Communications and Engagement
Jennifer Foote Company Secretary
Peter White Chair 01/08/2023
Paul O’Neill Vice Chair / Non-Executive Director
Tim Watkinson Senior Independent Director
Tim Ballard Non-Executive Director 01/10/2023
Victoria Crorken Non-Executive Director
Kate Smyth Non-Executive Director
Ann Pennell Non-Executive Director 31/05/2023
Jim Whitaker Non-Executive Director 01/07/2024
Tricia Whiteside Non-Executive Director
Uzair Patel Associate Non-Executive Director 01/10/2023
Michael Wearden Associate Non-Executive Director 09/06/2024
Peter Wilson Associate Non-Executive Director 15/06/2024
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All members have been in post for the whole year unless otherwise stated.

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Annual Report 2023/2024

Charitable Funds Committee Members:

Responsibility Name Post From To
Non-Executive Director (Chair of Committee) Kate Smyth
Non-Executive Director Tricia Whiteside
Non-Executive Director Victoria Crorken
Chief Medical Officer Geraldine Skailes
Chief Nursing Officer Sarah Cullen
Chief Finance Officer/Deputy Chief Executive Jonathan Wood 01/09/2024
Interim Chief Finance Officer David Stonehouse 02/09/2024

All members have been in post since 1 April 2023 unless otherwise stated.

Registered Charity Number and name: 1051194 Lancashire Teaching Hospitals Charity Principal Office address: Royal Preston Hospital Sharoe Green Lane Fulwood Preston PR2 9HT Head of Charities and Fundraising: Daniel Hill e: Daniel.Hill@lthtr.nhs.uk Preston Business Centre Finance Office address: Watling Street Road Preston PR2 8DY

The following advisors were retained by the Charity in 2023/24:

Auditors

Bankers Auditors National Westminster Bank PLC Beever and Struthers 35 Fishergate Suite 9b Preston The Beehive Lions Drive PR1 2BY Shadsworth Business Park Blackburn BB1 2QS

Investment Advisors Solicitors RBC Brewin Dolphin Hempsons 1 The Avenue Windmill Green Spinningfields Square 24 Mount Street Manchester Manchester M3 3AP M2 3NX

Annual Report 2023/2024

8. Financial Review

The Charity’s annual accounts have been produced in accordance with FRS102 as were the previous years. Therefore, no adjusting entries were required for the comparative year.

The charity is reporting a deficit for the year before adjustments for market value gains and losses on investments of £292k. (2022/23: deficit of £56k)

The investment portfolio has continued to experience volatility throughout the year due to national and economic factors. An increase in market values in the second half of the year, gave rise to an unrealised gain of £50k this offset the earlier unrealised loss and the actual net gain on the sale of investments of £2k that resulted in a net gain on investments of £52k (2022/23: loss of £39k) for the year.

Incoming resources of £627k were £695k lower than 2022/23. This represents a 47% decrease.

Net current assets of £133k were £308k lower than the prior year as a consequence of the reduced cash balance at the end of 2023/24. This is due to increased charitable activities expenditure incurred during the year.

Total Charity funds at the end of the year were £240k lower than 2022/23 at a level of £1,173k; required to fund the Charity’s outstanding commitments for various projects and items of equipment.

Going Concern

The trustee considers that there are no material uncertainties about Lancashire Teaching Hospitals Charity’s ability to continue as a going concern. Fundraising income is back to pre-pandemic levels but continues to be affected by the cost-of-living crisis.

As a grant making charity with few on-going commitments, this will impact on the new grants that can be made in the short term rather than affecting the charity’s ability to continue as a going concern. It is expected that the amount of grants that can be made will continue to be reduced in 2024/25. However, there are no material uncertainties affecting the current year’s accounts.

Support costs of £138k were £8k lower than 2022/23. This is due to less expenditure within IT services and subscriptions.

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Annual Report 2023/2024

Reserves Policy

The charity has a reserves policy which was reviewed in March 2022. The Charity has considered the level of reserves to be held for the prudent management of its working assets, commitments and contingencies.

Reserves are defined as funds that are freely available to fund the day-to-day operation of the charity and are not subject to commitments or other restrictions. The trustee requires that reserves are available to cover the following:

At the 31st March 2024 the Charity held total reserves of £1,173k (2022/23: £1,413k) of which £660k (2022/23: £842k) are held in restricted reserves. The balance held in unrestricted funds is £513k (2022/23: £571k).

The total realised and unrealised gain recognised in 2023/24 is £52k (2022/23: loss £39k). This is the result of a gain on the sale of investments of £2k (2022/23: loss of £11k) and a gain on the carrying value of the investments of £50k (2022/23: loss of £28k).

Investment Policy

The policy is reviewed annually; it was last reviewed at the Charitable Funds Committee meeting that took place in September 2023.

The Charity’s investments are held in stocks and shares and are managed by a well-respected investment management company, RBC Brewin Dolphin. The Trust maintains a strict control over investments, laying down a well-structured framework within which Brewin Dolphin must operate in order to minimise the risks associated with investments.

Overseas equities should not exceed 15% of the total holding of equities and investments in negotiable instruments known as “derivatives” are not permitted in any circumstances.

Investment in tobacco, alcohol and armaments is prohibited. If it should come to light that a company has become involved in unethical practices the Corporate Trustee should be consulted with a view to selling the investment.

The market value of managed funds shall not exceed 75% of the total charitable fund reserves.

The Charity currently has commitments of £209k of which £205k is to be funded from restricted reserves and £4k from unrestricted reserves. The trustee aims to maintain free reserves in unrestricted funds at a level which equates to approximately six months of planned operating expenditure £212k, plus £24k for fundraising costs for the Children’s appeal. The trustee considers that this level will provide sufficient funds to respond to delays or changes in applications for grants and to ensure that support and governance cost are covered.

The level of reserves is continually monitored by the Trustee and the policy will be reviewed at least every 3 years.

Annual Report 2023/2024

Corporate Trustee Responsibilities Statement

The Corporate Trustee are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). They are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the Charity and enable them to ensure that financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the Trust Deed. They are also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The law applicable to charities in England and Wales requires the Trustee to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Charity and of the incoming resources and application of resources of the Charity for the period. In preparing these financial statements, the Trustee is required to:

The Corporate Trustee is responsible for the maintenance and integrity of the Charity and financial information. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

The Corporate Trustee confirms that there is no relevant audit information of which the Charity’s auditors are unaware and they have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the Charity’s auditors are aware of that information.

By order of the Corporate Trustee

Signed:

Peter White Chair

Peter White Sarah Cullen Chair Trustee Date: 17/09/2024 Date: 17/09/2024

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Annual Report 2023/2024

Independent Auditor’s report

Independent Auditor’s Report to the trustee of Lancashire Teaching Hospitals Charity.

Opinion

We have audited the financial statements of Lancashire Teaching Hospitals Charity “the parent charity” and its subsidiary “the group” for the year ended 31 March 2024 which comprise the Consolidated Statement of Financial Activities, the Consolidated Balance Sheet, the Parent Balance Sheet, the Consolidated Cash Flow Statement and the related notes. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (United Kingdom Generally Accepted Accounting Practice).

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International

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

Conclusions relating to going concern

We have nothing to report to you in respect of the following matters in relation to which the ISAs (UK) require us to report to you were:

Annual Report 2023/2024

Other information

Responsibilities of trustees

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

As explained more fully in the Corporate Trustee Responsibilities Statement set out on page 18 , the trustee is responsible for the preparation of the group and parent charity financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine what is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

In preparing the financial statements, the Trustee is responsible for assessing the group’s and the parent charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustee either intends to liquidate the group or the parent charity or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

We have nothing to report in this regard.

Matters on which we are required to report by exception

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

we have not received all the information and A further description of our responsibilities for the explanations we require for our audit. audit of the financial statements is located on the Financial Reporting Council’s web-site at www.frc.org. uk/auditorsresponsibilities. This description forms - part of our auditor’s report.

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Annual Report 2023/2024

Use of our report

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

Beever and Struthers, Statutory Auditor

Beever and Struthers is eligible to act as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.

S Lomax FCA

(Senior Statutory Auditor) For and on behalf of Beever and Struthers

Suite 9b The Beehive Lions Drive Shadsworth Business Park Blackburn BB1 2QS

Date: 24 September 2024

Annual Report 2023/2024

9. Financial Statements

Consolidated Statement of Financial Activities for the year ended 31 March 2024

Notes
Income and endowments from:
Donations and legacies
3.1
Charitable activites
3.2
Other trading activities
3.3
Income from Investments
3.4
Total incoming resources
Expenditure on:
Raising funds
4
Charitable activities
5
Total Expenditure
Net gain on investments
10.1
Net (expenditure)
Transfer between funds
17.3
Net movement in funds
Reconciliation of Funds
Total funds brought forward
17
Total Funds carried forward
17		 Unrestricted
Restricted
Total
Unrestricted
Restricted
Total
Funds
Funds
Funds
Funds
Funds
Funds
£000
£000
£000
£000
£000
£000
80
359
439
193
946
1,139
5
86
91
5
114
119
-
69
69
-
48
48
12
16
28
7
9
16
97
530
627
205
1,117
1,322
113
241
354
77
206
283
79
486
565
102
993
1,095
192
727
919
179
1,199
1,378
23
29
52
(88)
49
(39)
(72)
(168)
(240)
(62)
(33)
(95)
14
(14)
-
-
-
-
(58)
(182)
(240)
(62)
(33)
(95)
571
842
1,413
633
875
1,508
513
660
1,173
571
842
1,413
2023/2024
2022/2023

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Annual Report 2023/2024

Consolidated Balance Sheet as at 31 March 2024

Unrestricted Restricted Total at 31 Total at 31
Funds Funds March 2024 March 2023
Notes £000 £000 £000 £000
Fixed Assets
Investments 10 379 661 1,040 972
Total Fixed Assets 379 661 1,040 972
Current Assets
Inventories 12 - 4 4 4
Debtors 13 2 - 2 179
Cash and cash equivalents 14 156 84 240 521
Total Current Assets 158 88 246 704
Liabilities
Creditors falling due within one year 16 24 89 113 263
Net Current Assets 134 (1) 133 441
Total Assets less Current Liabilities 513 660 1,173 1,413
Total Net Assets 513 660 1,173 1,413
The Funds of the Charity
Restricted income funds 17.1 - 660 660 842
Unrestricted income funds 17.2 513 - 513 571
Total Charity Funds 513 660 1,173 1,413

The financial statements on pages 22 to 37 were approved and authorised for issue by the Board of Trustees on the 17th September 2024 and approved on its behalf by the Charitable Funds Committee.

Signed: SaQ Sarah Cullen, Trustee

Date: 17/09/2024

Annual Report 2023/2024

Parent Balance Sheet as at 31 March 2024

Unrestricted Restricted Total at 31 Total at 31
Funds Funds March 2024 March 2023
Notes £000 £000 £000 £000
Fixed Assets
Investments 10 379 661 1,040 972
Total Fixed Assets 379 661 1,040 972
Current Assets
Debtors 13 2 4 6 183
Cash and cash equivalents 14 156 57 213 499
Total Current Assets 158 61 219 682
Creditors falling due within one year 16 24 86 110 421
Net Current Assets 134 (25) 109 421
Total Assets less Current Liabilities 513 636 1,149 1,393
Total Net Assets 513 636 1,149 1,393
The Funds of the Charity
Restricted income funds 17.1 - 636 636 822
Unrestricted income funds 17.2 513 - 513 571
Total Charity Funds 513 636 1,149 1,393

The financial statements on pages 22 to 37 were approved and authorised for issue by the Board of Trustees on the 17th September 2024 and approved on its behalf by the Charitable Funds Committee.

Signed: Sa Sarah Cullen, Trustee

Date: 17/09/2024

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Annual Report 2023/2024

Consolidated Cash Flow Statement for the year ended 31 March 2024

Total at 31 Total at 31
March 2024 March 2023
Notes £000 £000
Cash flows from operating activities:
Net cash (used) in operating activities 18 (293) (77)
Cash flows from investing activities:
Interest received 3.4 12 5
Dividends received 3.4 16 11
Proceeds from sale of investments 10.1 217 339
Purchase of investments 10.1 (233) (356)
Net cash provided by investing activities: 12 (1)
Change in cash and cash equivalents in the reporting period 15 (281) (78)
Cash and cash equivalents at the beginning of the reporting period 14 521 599
Cash and cash equivalents at the end of the reporting period 14 240 521

Annual Report 2023/2024

10. Notes to the Financial Statements

1. Accounting policies

1.1 Basis of preparation

The financial statements of the charity are presented in £ Sterling, rounded to the nearest thousand and have been prepared under the historical cost convention, with the exception of investments which are included at fair value.

The accounts (financial statements) have been prepared in accordance with the Statement of recommended practice: accounting and reporting by charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued in October 2019 and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011 and UK Generally Accepted Practice as it applies from 1 January 2019. The Charity constitutes a public benefit entity as defined by FRS102.

1.2 Going concern

The trustee considers that there are no material uncertainties about the Lancashire Teaching Hospitals Charities’ ability to continue as a going concern. Fundraising income is back to pre-pandemic levels but continues to be affected by the cost-of-living crisis.

As a grant making charity with few on-going commitments, reduced income will impact on the new grants that can be made in the short term rather than affecting the charity’s ability to continue as a going concern. It is expected that the amount of grants that can be made will reduce in 2024/25. However, there are no material uncertainties affecting the current year’s accounts.

In future years, the key risks to the charity are a fall in income from donations or investment income but the trustee has arrangements in place to mitigate those risks (see the risk management and reserves sections of the annual report for more information).

1.3 Critical judgements in applying accounting policies

In the application of the Charity’s accounting policies, which are described in notes 1.1 to 1.21, the Trustee is required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The key judgements are those policies relating to incoming resources (notes 1.7 and 1.8), recognition of expenditure and associated liabilities as a result of grant (note 1.11) and fixed

asset investments (note 1.15). The Trustee does not consider there are any sources of estimation uncertainty requiring disclosure beyond the accounting policies listed below.

1.4 Key estimations

The value of potential legacies disclosed in note 19. Contingent assets and liabilities is estimated using information received from solicitors and current property market valuations.

1.5 Funds structure

Where there is a legal restriction on the purpose to which a fund may be put, the fund is classified as a restrictedfund or an endowment fund.

Restricted funds are those where the donor has provided for the donation to be spent in furtherance of a specified charitable purpose. Endowment funds arise when the donor has expressly provided that the gift is to be invested and only the income of the fund may be spent.

Lancashire Teaching Hospitals Charity has restricted funds, no endowment funds and one designated unrestricted fund. The material restricted funds held are disclosed in note 17.

Those funds which are neither endowment nor restricted income funds are unrestricted income funds which can be analysed between designated (earmarked) funds where the trustees have set aside amounts to be used for specific purposes or which reflect the non-binding wishes of donors, and unrestricted funds which are at the trustees' discretion.

1.6 Basis of consolidation

The group financial statements consolidate the results of the Charity’s trading subsidiary, Baby Beat Limited, on a line by line basis. Advantage has been taken of the SORP and the parent charity's own income and expenditure has not been disclosed in these financial statements. The income of the Lancashire Teaching Hospitals Charity was £627k (2022/23: £1,322k), giving rise to a deficit of £240k (2022/23: deficit £95k).

Subsidiary companies are exempt from the requirement of the Companies Act 2006 relating to the audit of the individual accounts by virtue of S479A.

1.7 Incoming resources

All incoming resources are recognised once the charity has entitlement to the resources, it is probable that the resources will be received and the monetary value of the incoming resources can be measured with sufficient reliability. Gifts in kind are recognised as a reasonable estimate of their fair value or the amount actually realised.

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Annual Report 2023/2024

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

1.8 Incoming resources from legacies

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

Receipt is probable when:

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

1.9 Gifts in kind and donated services

Gifts in kind are recognised as a reasonable estimate of their fair value or where the monetary value of gifts cannot be reliably measured, they will be included in the accounts when they are sold and the amount actually realised.

Donated services are measured and included in the accounts on the basis of the value of the gift to the charity. i.e. what the charity would pay in the open market for the services that are being donated.

1.10 Resources expended and irrecoverable VAT

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

Expenditure is recognised when the following criteria are met:

1.11 Recognition of expenditure and associated liabilities as a result of grant

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

Grant payments are accounted for on an accruals basis where the conditions for their payment have been met or where a third party has a reasonable expectation that they will receive the grant.

The trustee has control over the amount and timing of grant payments and consequently where approval has been given by the charitable funds committee, on behalf of the trustee, grants are considered commitments. An appropriate designation is made for these commitments in the appropriate fund until payment is due to be made at which point the expenditure and liability is recognised in the accounts. Approved commitments of expected future expenditure are disclosed in note 20.

1.12 Allocation of support costs and overheads

Support costs are those costs which do not relate directly to a single activity, including governance costs, that are costs which relate to the strategic as opposed to the day to day management of a charity.

Support costs include some staff costs, costs of administration and external audit costs. They have been

apportioned between the cost of raising funds and charitable activities on the basis of expenditure incurred in relation to each category. The analysis of support costs and the apportionment is shown in note 7.

1.13 Fundraising costs

The costs of generating funds are those costs attributable to generating income for the charity, other than those costs incurred in undertaking charitable activities or the costs incurred in undertaking trading activities in furtherance of the charity’s objects. The costs of generating funds represent fundraising costs together with investment management fees. Fundraising costs include expenses for fundraising activities and salaries and overhead costs paid to a related party, Lancashire Teaching Hospitals NHS Foundation Trust, shown in note 2.

Quarterly management fees are offset against commission charges. Fees that exceed the commission charge are deducted from the funds on deposit are shown in note 4.

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

Annual Report 2023/2024

1.14 Charitable activities

Costs of charitable activities comprise all costs incurred in the pursuit of the charitable objects of the charity. These costs, where not wholly attributable, are apportioned between the categories of charitable expenditure in addition to the direct costs. The total costs of each category of charitable expenditure include an apportionment of support costs as shown in note 5.

1.15 Fixed asset investments

Investments are a form of basic financial instrument. Fixed asset investments are initially recognised at their transaction value and are subsequently measured at their fair value (market value) as at the balance sheet date. The Statement of Financial Activities includes the net gains and losses arising on revaluation and disposals throughout the year. Quoted stocks and shares are included in the balance sheet at the current market value quoted by the investment analyst, excluding dividend. Other investments are included at the trustee’s best estimate of market value.

The main form of financial risk faced by the charity is that of volatility in equity markets and investment markets due to wider economic conditions, the attitude of investors to investment risk, and changes in sentiment concerning equities and within particular sectors or sub sectors.

All realised and unrealised gains and losses are combined in the Statement of Financial Activities and are taken as they arise. Realised gains and losses on investments are calculated as the difference between sales proceeds and opening carrying value or their purchase value, if acquired subsequent to the first day of the financial year. Unrealised gains and losses are calculated as the difference between the fair value at the year end and their carrying value.

1.16 Inventories

Inventories are valued at the lower of cost and net realisable value.

1.17 Debtors

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

1.18 Cash and cash equivalents

Cash at bank and in hand is held to meet the day to day running costs of the charity as they fall due. Cash equivalents are short term, highly liquid investments, held in interest bearing savings accounts.

1.19 Creditors

Creditors and provisions are amounts owed by the charity. They are recognised when the Charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount.

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

1.20 Financial Instruments

Financial assets and financial liabilities are recognised when the Charity becomes a party to the contractual provisions of the instrument. All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

The Charity only holds financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

1.21 Remuneration and benefits

No staff are directly employed by the Charity. All staff engaged in the activities of the Charity are employed by Lancashire Teaching Hospitals NHS Foundation Trust. The Charity is recharged for individuals time spent engaged in either charitable activities, raising funds or providing support (e.g. back office functions) to the Charity.

All recharged staff members belong to the NHS Pension Scheme which is an unfunded defined benefit scheme, accounted for as a defined contribution scheme. The recharge from Lancashire Teaching Hospitals NHS Foundation Trust includes the employer contributions to that scheme. For more information on the NHS Pension Scheme refer to the Lancashire Teaching Hospitals NHS Foundation Trust annual report and accounts.

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Annual Report 2023/2024

2. Related party transactions

Lancashire Teaching Hospitals Charity is managed by the Corporate Trustee which is also the Board of Directors of Lancashire Teaching Hospitals NHS Foundation Trust which is the main beneficiary of the charity. During the year the Charity made revenue and capital payments to Lancashire Teaching Hospitals NHS Foundation Trust of £947k (2022/23: £1,086k), including grants of £480k (2022/23: £977k)

The Charity was recharged £315k (2022/23: £321k) for staff working for the charity throughout the year, whose contracts are paid by Lancashire Teaching Hospitals NHS Foundation Trust. This includes accounting and administrative support provided to the Charity at a cost of £23k (2022/23: £22k).

During the year none of the Trustees or members of the key management staff or parties related to them have undertaken any material transactions with the Lancashire Teaching Hospitals Charity. (2022/23: £nil)

As at 31 March 2024 £91k (2022/23: £44k) was owed to Lancashire Teaching Hospitals NHS Foundation Trust.

The Trustees have purchased trustee indemnity insurance of £3k. (2022/23: £3k)

The Charity's investment portfolio is pooled with that of The Rosemere Cancer Foundation. The Charity receives an apportionment of the income and expenditure related to the investments based on its share (70%) of the portfolio (2022/23: 72%).

3. Incoming resources

3.1 Income from donations and legacies

Unrestricted Restricted 2023/2024 2022/2023
Funds Funds Total Total
£000 £000 £000 £000
Donations 44 110 154 231
Corporate Donations 2 23 25 22
Legacies 5 - 5 186
Grants 29 226 255 700
Total 80 359 439 1,139

Donations of goods £38k (2022/23: £64k) are included in income valued at their market value. All of these donations have been distributed during the year.

3.2 Charitable activities income

Unrestricted Restricted 2023/2024 2022/2023
Funds Funds Total Total
£000 £000 £000 £000
Events 1 33 34 31
Community Fundraising Groups 1 47 48 82
Other 3 6 9 6
Total 5 86 91 119

Annual Report 2023/2024

3.3 Income from other trading activities

Baby Beat Ltd shop sales total
3.4 Investment income
Dividend income
Bank account interest
Total		 Unrestricted
Restricted
2023/2024
Funds
Funds
Total
£000
£000
£000
-
69
69
Unrestricted
Restricted
2023/2023
Funds
Funds
Total
£000
£000
£000
7
9
16
5
7
12
12
16
28		 2022/2023
Total
£000
48
2022/2023
Total
£000
11
5
16

4. Analysis of expenditure on raising funds

Fundraising team
Fundraising activities
Advertising / marketing
Trading activities
Investment management fees
Support costs
Total		 Unrestricted
Restricted
2023/2024
Funds
Funds
Total
£000
£000
£000
64
135
199
21
15
36
9
10
19
-
44
44
1
2
3
18
35
53
113
241
354		 2022/2023
Total
£000
200
6
18
28
3
28
283

5. Analysis of expenditure on charitable activities

The charity pursued its charitable activities by making grants. Support costs have been apportioned across the categories of charitable expenditure on the basis of the associated transaction cost incurred by the charity disclosed in note 7.

Patient Environment and Wellbeing
Staf Education and Wellbeing
Research
Medical Equipment
Grants
Total		 Grant funded
Support
2023/2024
Activity
Costs
Total
£000
£000
£000
400
71
471
42
7
49
13
2
15
25
4
29
-
-
**- **		 Grant funded
Support 2022/2023
Activity
Costs
Total
£000
£000
£000
172
21
193
143
17
160
17
2
19
66
8
74
579
70
649
480
85
565		 977
118
1,095

Throughout the year the charity received donated gifts in kind that were distributed to staff and patients. The estimated cost of the donated goods £38k (2022/23: £64k) is included in these figures.

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Annual Report 2023/2024

6. Analysis of grants

All grants are made to the Lancashire Teaching Hospitals NHS Foundation Trust. The total cost of making grants, including support costs, is shown on the face of the Statement of Financial Activities, and the actual disbursement for each category of charitable activity is disclosed in note 5.

7. Allocation of support costs and overheads

Support and overhead costs are allocated between fundraising activities and charitable activities. Governance costs (£39k) (2022/23: £43k), are those support costs which relate to the strategic and day to day management of a charity.

These costs are apportioned across the charitable activities on the basis of expenditure incurred in relation to each category.

7.1 Analysis of total support costs

Raising Charitable Raising Charitable 2023/2024 Raising Charitable 2022/2023 Raising Charitable 2022/2023 Raising Charitable 2022/2023
funds Activities Total funds Activities Total
£000 £000 £000 £000 £000 £000
Financial Administration 9 9
14		 23 4 18 22
Information Technology - -
-		 - - -
2		 2
2
Professional fees 2 2
4		 6 2 4 4
6
Administration costs 1 1
1		 2 - -
1		 1
1
Salary recharges 36 36
57		 93 20 20
79		 79
99
External Audit 5 5
8		 13 2 10 10
12
Subscriptions / memberships - -
-		 - - -
3		 3
3
Bank Charges - -
1		 1 - -
1		 1
1
Total 53 53
85		 138 28 118 118
146
Unrestricted Restricted Unrestricted Restricted 2023/2024 2022/2023
Funds Funds Total Total
£000 £000 £000 £000
Governance costs 18 21 39 43
Support costs 29 70 99 103
Total 47 91 138 146

7.2 Auditor’s remuneration

Total Audit Fees for 2023/24 were £10,610 (excluding VAT) which related solely to the audit with no additional work undertaken (2022/23: £9,950). The audit fee is included within governance costs.

7.3 Support cost allocation

Unrestricted Restricted Unrestricted Restricted 2023/2024 2022/2023
Funds Funds Total Total
£000 £000 £000 £000
Raising Funds 18 35 53 28
Charitable Activities 29 56 85 118
Total 47 91 138 146

Annual Report 2023/2024

8. Trustee remuneration, benefits and expenses

The members of Lancashire Teaching Hospitals NHS Foundation Trust board give their time freely and receive no remuneration for the work that they undertake in relation to the charity. No expense claims were reimbursed to members of the board, by the charity in 2023/24. (2022/23: £nil). For more information on the Board members remuneration refer to the Lancashire Teaching Hospitals NHS Foundation Trust annual report and accounts.

9. Analysis of staff costs and remuneration of key management personnel

Salaries and wages
Social Security costs
Employer contributions
Total
Fundraising
Finance administration
Administration support
Total		 2023/2024
Total
£000
246
34
35
315
199
23
93
315		 2022/2023
Total
£000
250
35
36
321
200
22
99
321

All staff engaged in the activities of the Charity are employed by Lancashire Teaching Hospitals NHS Foundation Trust. No staff are directly employed by the Charity.

The average number of full-time and part-time employees during the year was 4 and 3 respectively (2022/23: 4/4), an estimated number of full-time equivalent employees of 5 (2022/23: 4). These employees are involved in fundraising and providing support to the charitable activities or the governance of the charity.

Lancashire Teaching Hospitals Charity considers its key management personnel to be the member of the Lancashire Teaching Hospitals NHS Foundation Trust board, acting on behalf of the corporate trustee and the Head of Charities and Fundraising. The total employment benefits included employer pension contributions of the key management personnel, these were £57k (2022/23: £59k).

No employees had emoluments in excess of £60k (2022/23: none).

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Annual Report 2023/2024

10. Fixed asset Investments

10.1 Movement in fixed asset investments - group and parent

2023/2024 2022/2023
£000 £000
Market value brought forward 972 994
Add : acquisitions at cost 233 356
Less: disposals at carrying value (217) (339)
Realised and unrealised gain / (loss) for the year 52 (39)
Market value at 31 March 2024 1,040 972
Historic cost 653 973
2023/2024 2022/2023
£000 £000
Unrealised gain / (loss) on carrying value of the investments 50 (28)
Gain / (loss) on sale of investments 2 (11)
Total realised and unrealised gain / (loss) for the year 52 (39)

10.2 Fixed asset investments by type - group and parent

10.2 Fixed asset investments by type - group and parent 10.2 Fixed asset investments by type - group and parent
2023/2024 2022/2023
Market Value Market Value
£000 £000
Listed equity investments 259 227
Fixed interest investments 531 485
Other investment funds 250 260
1,040 972

The charity manages these investment risks by retaining expert advisors and operating an investment policy that provides for a high degree of diversification of holdings within investment asset classes. All investments were made in companies listed on a UK stock exchange or incorporated in the UK and therefore all investments are treated as investment assets in the UK.

11. Subsidiaries

Baby Beat Limited (03817502) is registered in England and Wales and is wholly owned by Lancashire Teaching Hospitals NHS Foundation Trust Charity and is a retailer of children's clothing and confectionary. Details of its trading activities are set out below.

11.1 Subsidiary results

11.1 Subsidiary results
2023/2024 2022/2023
£000 £000
Income 69 48
Costs (45) (28)
Operating profit 24 20
Retained in subsidiary at beginning of year
Amount gift aided to Lancashire Teaching Hospitals Charity		 20
(20)		 17
(17)
Retained in subsidiary 24 20

Annual Report 2023/2024

11.2 Summarised balance sheet of subsidiary trading company

Inventories
Debtors
Cash and cash equivalents
Creditors: amounts falling due within one year
Creditors: amounts falling due afer more than one year
Net assets
Capital and reserves		 2023/2024
£000
4
-
27
(3)
(4)
24
24		 2022/2023
£000
4
1
22
(2)
(5)
20
20

These accounts have been prepared by McMillan & Co LLP, Chartered Accountants, 28 Eaton Avenue, Matrix Office Park, Buckshaw Village, Chorley, Lancashire, PR7 7NA

12. Inventories

Inventories comprise finished goods held for resale.

Group
2023/2024
2022/2023
£000
£000
4
4		 Parent
2023/2024
2022/2023
£000
£000
-
-

13. Analysis of debtors

Amounts falling due within one year.

Accrued income
Prepayments
Subsidiary debtors
Loan due from subsidiary undertaking
Total		 Group
2023/2024
2022/2023
£000
£000
-
174
2
4
-
1
-
-
2
179		 Parent
2023/2024
2022/2023
£000
£000
-
174
2
4
-
-
4
5
6
183

14. Analysis of cash and cash equivalents

Charity bank account
Subsidiary bank account
Stockbroker deposit account
Total		 Group
2023/2024
2022/2023
£000
£000
218
474
-
22
22
25
240
521		 Parent
2023/2024
2022/2023
£000
£000
191
474
-
-
22
25
213
499

34

Annual Report 2023/2024

15. Analysis of changes in net debt

At 1 April 2023 At 1 April 2023 At 1 April 2023 At 1 April 2023 Cash flows At 31 March 2024 At 31 March 2024 At 31 March 2024 At 31 March 2024
£000 £000 £000
Cash and Cash equivalents 521 (281) 240
Total 521 (281) 240

16. Analysis of creditors

Amounts falling due within one year.

Group Group Parent Parent
2023/2024 2022/2023 2023/2024 2022/2023
£000 £000 £000 £000
Creditors 94 45 91 44
Accruals and deferred income 19 218 19 217
Total 113 263 110 261

The creditor figure represents the sum owed at the end of the year by the charity to a related parties, Lancashire Teaching Hospitals NHS Foundation Trust. There are no creditors falling due after more than one year.

17. Analysis of charitable funds

17.1 Restricted funds

In 2022 the Charity received approval from the Charity Commission to dissolve the twelve special purpose charities that had previously been recognised as separate entities under the same charity registration number. All of the funds related to these special purpose Charites continue to be managed as restricted funds.

Balance Incoming Resources Transfer Balance
31 March 2023 Resources Expended Between Funds 31 March 2024
£000 £000 £000 £000 £000
Baby Beat 197 188 (232) - 153
Children’s Appeal 129 75 (128) - 76
Critical Care Patient Fund 69 13 (21) - 61
MND Fund 46 42 (26) - 62
Others 401 212 (320) (14) 279
Unrealised Gains and Losses - 37 (8) - 29
Total Restricted Funds 842 567 (735) (14) 660

Materiality of restricted funds is considered to be funds with a closing balances greater than £50k for the purpose of this analysis, all other restricted funds are included in other. The £24k retained in the subsidiary has been included in the Baby Beat balance (2022/23 £20k).

Fund balances are shown after the allocation of unrealised gains and losses.

Annual Report 2023/2024

17.2 Unrestricted fund

The unrestricted fund is split into designated funds which are used to fund activities that benefit patients of Lancashire Teaching Hospitals NHS Foundation Trust and the staff that deliver patient care to those patients.

Balance Incoming Resources Transfer Balance
31 March 2023 Resources Expended Between Funds 31 March 2024
£000 £000 £000 £000 £000
Unrestricted Funds 571 97 (192) 14 490
Unrealised Gains and Losses - 30 (7) - 23
Total Restricted Funds 571 127 (199) 14 513

Fund balances are shown after the allocation of unrealised gains and losses.

17.3 Unrestricted fund

During the year the Trust has continued to rationalise funds, resulting in movement between funds of £14k that have been reclassified as unrestricted.

18. Reconciliation of net income/(expenditure) to net cash flow from operating activities

Net (expenditure) / income for 2023/24 (as per the SOFA)
(Gain) / loss on investments
Dividends and interest from investments
Decrease in inventories
Decrease / (increase) in debtors
Decrease / (increase) in creditors
Net cash used in operating activities		 2023/2024
£000
(240)
(52)
(28)
-
177
(150)
(293)		 2022/2023
£000
(95)
39
(16)
1
(176)
170
(77)

19. Analysis of net assets between funds

Tangible fixed assets
Current assets
Current liabilities
Total net assets
Tangible fixed assets
Current assets
Current liabilities
Total net assets		 Unrestricted
Restricted
31 March 2024
Funds
Funds
Total Funds
£000
£000
£000
379
661
1,040
158
88
246
(24)
(89)
(113)
513
660
1,173
Unrestricted
Restricted
31 March 2023
Funds
Funds
Total Funds
£000
£000
£000
340
632
972
261
443
704
(30)
(233)
(263)
571
842
1,413

36

Annual Report 2023/2024

20. Contingent assets and liabilities

20. Contingent assets and liabilities 20. Contingent assets and liabilities
2023/2024 2022/2023
£000 £000
Legacies 2 40
Total 2 40

Potential legacies not yet received and which are probable, that have been identified from Wills and Testaments, have an estimated value of £2k.

21. Commitments

The Charity has the following outstanding commitments at the end of the year as they have made a provisional agreement to fund various projects and items of equipment. These have not been accounted for in the SOFA.

Unrestricted Restricted 2023/2024 2022/2023
Funds Funds Total Total
£000 £000 £000 £000
Total commitments as at 31 March 2024 Total commitments as at 31 March 2024 Total commitments as at 31 March 2024 Total commitments as at 31 March 2024 4 205 209 155

As described in note 6, the charity awards a number of grants in the year. Included in commitments are many grants that are awarded and expected to be paid out in the next financial year. The charity has control over the award and timing of payment of grants, they remain commitments until there is certainty about the payment that will be funded from existing and future reserves. No multi-year grants are included in these commitments.

22. Events after the reporting period

There are no adjusting events after the reporting period. However, it should be noted that these accounts have not been consolidated into the main accounts of Lancashire Teaching Hospitals NHS Foundation Trust due to materiality.. The £24k profit, retained in the subsidiary will be gift aided to the charity post year end.

Annual Report 2023/2024

Lancashire Teaching Hospitals Charity Royal Preston Hospital Fulwood, Preston, PR2 9HT

T: 01772 528500

E: Charity@lthtr.nhs.uk

Follow us on social media @LancHospCharity | www.lthcharity.org.uk £1X|@] in}

Reg. Charity No. 1051194

38