2022-03-31-accounts - Blackpool Teaching Hospitals Charitable Fund And Related Charities

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BLACKPOOL TEACHING HOSPITALS CHARITABLE FUND AND RELATED CHARITIES

Registration Number 1051570

ANNUAL REPORT & FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2022

Annual Report and Financial Statements 2021/22

BLACKPOOL TEACHING HOSPITALS CHARITABLE FUND AND RELATED CHARITIES

(Charity Commission Registration Number 1051570)

ANNUAL REPORT

&

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2022

Trustee’s Report 2021/22 Objectives and Activities Achievements and Performance Financial Review Structure, Governance and Management Reference and Administrative Details for 2021/22	Page Number 2 3 4 5 8

Financial Statements 2021/22
Trustee’s Responsibilities Statement	10
Independent Auditor’s Report	11
Statement of Financial Activities	15
Balance Sheet	16
Cash Flow Statement	17
Notes to the Financial Statements	18

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Annual Report and Financial Statements 2021/22

Objectives and Activities

In partnership with Blackpool Teaching Hospitals NHS Foundation Trust (the Trust), this Charity enhances the provision of first-class patient care for public benefit. It supports the provision of healthcare, free at the point of need and cares for staff, patients, carers and families by focusing on areas not covered, or fully supported, by central NHS funds. Blue Skies Hospitals Fund exists to support the best in healthcare and medical research at the Trust. Its aim is to help the Trust become world class in patient care.

The Charity has the following objectives:

To ensure that grant making activities are in line with the priorities of the Charity and the Trust.

Monitoring has continued throughout 2021/22 to ensure that grants approved meet the objectives of the Charity through quarterly meetings of the Charitable Funds Committee and the Corporate Trustee meetings which follow.

To continue to engage with the Fund Advisors, ensuring they are making sound decisions when authorising charitable expenditure and encouraging them to proactively identify opportunities to utilise charitable funds to enhance patient care in their areas.

We continue to review the Fund Advisors to ensure the funds remain the responsibility of the most appropriate individuals and that they continue to make sound decisions concerning the expenditure of those funds.

To monitor all expenditure from charitable funds is conducted in a timely and efficient manner and that all expenditure aligns with Charity governance and best practice as determined by the Charity Commission.

Throughout 2021/22, all expenditure following a successful funding application was monitored by Blue Skies Hospitals Fund, to ensure compliance with Charity governance and best practice.

To increase unrestricted monies through appeals, grant applications and corporate partnerships.

During this financial year we have again secured grants through NHS Charities Together. We had another successful Christmas ‘Give a Fiver’ appeal and obtained match funding from one of our corporate partners.

To continue to promote Blue Skies Hospitals Fund as the primary fundraising vehicle for the Trust both internally and externally by proactively engaging with patients, staff and volunteers as well as businesses, groups, schools, members of the community and the local media.

Once children were allowed back into school, we reintroduced our Young Fundraiser Scheme to enable children to start working through our Tiny Fundraiser, Junior Fundraiser and Teen Raiser certificates. We have engaged and presented to the BBLG (Blackpool Business Leadership Group) as well as local networking groups throughout the Fylde Coast. We continued to support staff throughout the pandemic.

To actively promote tax effective giving through Gift Aid and Legacy fundraising.

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Annual Report and Financial Statements 2021/22

We continue to promote Legacy Fundraising and have a regular advert in a free magazine, given out to all local supermarkets up and down the Fylde Coast, as well as promoting this through our magazine. If we receive a donation that we do not have gift aid authorisation for, the follow up thank you letter contains a form that the donor can send back, should they be eligible for Gift Aid, this is also promoted through our magazine.

To continue to recruit and support community fundraisers, Charity of the Year partnerships and Blue Skies Ambassadors to maximise brand awareness and funds raised for the Charity.

We now have a number of Blue Skies volunteers, supporting our Community Fundraiser, who are able to help out at events, festivals etc. We were charity of the year for two different golfing associations and are looking at a few ambassadors to come on board with us in 2022/23.

Plans for the future

In addition to the above, the Charity also aims to:

Procure the latest medical equipment to diagnose patients rapidly and accurately.
Develop medical research breakthroughs that will benefit future patients.
Improve the environments where patients and visitors are cared for and where staff and volunteers are located.
Enhance the abilities of medical staff through education and training.

Achievements and Performance

The Charity exists to enhance the patient care provided by the Trust. In the main, this relates to supplementing core activity with patient benefits and comforts that would not ordinarily be afforded from public funds alone.

During 2021/22 the Charity has been able to purchase the following items:

Patient Recliner Chairs for the Oncology Day Unit to allow the patients to sit comfortably when receiving treatment - £11,251.
RITA Systems for Scheduled Care , these are interactive systems provide a range of activities that can help to keep the patients in bed if necessary, provide stimulation and also help with relaxation - £49,999.
16 Recliner Chairs for the Care of the Elderly Wards (23, 24, 25, 26) to encourage the patients of the Care of the Elderly Wards to get up and out of bed - £16,804.
Interactive, Audio Sensory Machines for the Children’s Ward , for children with special educational needs and distraction therapy on the ward and clinic - £14,988.
Murals for the Side Rooms in the Haematology Ward to provide a better environment for the patients on the ward, some of whom spend a long period of time there - £12,000.
34 Custom Printed White Information Boards for Various Wards to improve the appearance of the wards whilst providing information to patients and staff - £21,612.
1,000 About Me Boards for Patient Bedsides to share important information about the patients to the staff - £29,100.

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Annual Report and Financial Statements 2021/22

Covid 19 impacts on future plans

Within the financial year 2021/22 our ability to operate fundraising activity was affected again, however, we did turn to some virtual events which were relatively successful. We did manage to run our annual Elf Run in late November 2021.

In 2022/23 we will continue do a combination of actual and virtual events, as this seems to suit donors (offering them a choice).

During 2021/22 the Charity also:

Set up a Blue Skies football team, that has a biannual tournament but has also played against other local charities.
Continued its Legacy Campaign and ‘wrapped’ a double decker bus with legacy information which now travels daily up and down the Fylde Coast, making great mobile marketing.
Got involved in a spectacular weekend of events including a royal variety style show and a celebrity charity dinner in aid of our late patron Bobby Ball.

Financial Review

The Charity’s reporting year runs from 1 April to 31 March. In the reporting year 2021/22, the Charity received donations, legacies and grants totalling £480k (£753k in 2020/21). The proportion of people who donated to NHS and public health charities fell within this year.
The net assets of the Charity held on 31 March 2022 were £1,226k (2020/21 £1,366k).
The financial statements have been prepared in accordance with the accounting policies set out in notes to the accounts and comply with the Charity’s governing document, the Charities Act 2011 and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland published in October 2019.
Of the total expenditure of £621k (2020/21 £1,025k), expenditure on charitable activities was £380k (2020/21 £773k) and expenditure on raising funds was £200k (2020/21 £210k).

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Annual Report and Financial Statements 2021/22

Reserves Policy

The Charity receives income mainly from fundraised income and legacies which it is difficult to predict in advance when it will be received. It is therefore essential that the Charity can maintain a sufficient level of reserves to meet its commitments.
The Reserves Policy states that free (unrestricted) reserves are maintained at a level that enough money is set aside to cover costs if the Charity was to cease trading. The value of free reserves on 31 March 2022 was £736k (£804k on 31 March 2021) and forecast cessation cost was £119.8k.
The Charity is fully committed to spending any surplus reserves in a timely and appropriate manner to meet the charitable objectives.
It should be noted that the Charity’s structure includes restricted funds, and this limits the Corporate Trustee’s freedom to act to reduce the level of reserves.

Investment Policy

There has been no change to the investment policy during the financial year. The Charity identifies monies throughout the financial year that are not immediately required to fund expenditure and uses those monies to invest in short term deposits with Trust Board approved counter parties (for example, banks/building societies). However, no investment was made during the year due to the low rate of return in the market.

Analysis of Risk

The Charity only spends up to the level of balances brought forward from previous years plus income received in the current year after allowing for existing commitments, rather than planning developments based upon anticipated income. Irrespective of the limited nature of the risk, the Committee monitors trends in donations at its quarterly meetings, which aims to highlight any potential problem area at an early stage.
The Risk Register for the Charity was updated and reviewed during the year. The Charitable Funds Committee undertook a review of the major risks to which both the Charity and Fundraising Department were exposed during 2021/22. The Corporate Trustee will continue to review these risks and ensure that these are adequately mitigated.

Structure, Governance and Management

Blue Skies Hospitals Fund (Blackpool Teaching Hospitals Charitable Fund and Related Charities) is registered with the Charity Commission and the funds are held on trust by Blackpool Teaching Hospitals NHS Foundation Trust as a corporate body. It has existed in its present form since 2003. The Trust, as a Corporate Trustee, is managed by a Board of Directors.
Management of the Trust’s Charity is officially delegated to a committee of the Board called the Charitable Funds Committee. The Committee usually meets quarterly and monitors all aspects of the Charity’s activities. The membership of the Committee is detailed in the “Reference and Administrative Details for 2021/22” section.
New Charity trustees are appointed and inducted on Charity specific governance requirements by virtue of their membership of the Blackpool Teaching Hospitals NHS Foundation Trust Board of Directors.

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Annual Report and Financial Statements 2021/22

In its role as representative of the Corporate Trustee, the Committee has taken into consideration the Charity Commission’s guidance on public benefit.
Day to day administration of the Charity is undertaken by the Fundraising Department of Blackpool Teaching Hospitals NHS Foundation Trust and the initial point of contact (and Charity Commission correspondent) is the Trust’s Head of Financial Services.
On behalf of Blue Skies Hospitals Fund (Blackpool Teaching Hospitals Charitable Fund and Related Charities), the Charitable Funds Committee:
Ensures that income and expenditure levels comply with the terms of the relevant funds and the stated policies of the Trust.
Continues to review the charitable funds application process to ensure that all applications have been through the appropriate Trust approval processes and charitable funds are subsequently applied effectively for patient benefit. All applications for funding are scrutinised to ensure all correct procedures have been applied accordingly to Charity policy and that applications are only approved if they meet the objectives of the Charity.
Monitors and updates where appropriate any policy relating to raising or spending money from Blue Skies Hospitals Fund. The Charitable Funds policy is regularly reviewed to ensure compliance with best practice and Charity Commission guidelines.
Monitors the scheme of delegation and follows robust processes to ensure that charitable funds are effectively managed and that funds are allocated with due regard to public benefit and the wishes of our donors.
The Corporate Trustee continues to meet following quarterly Charitable Funds Committee meetings for updates on how charitable funds are being spent and that the Blackpool Victoria Hospital General Purposes Fund spending is in accordance with the four spending priorities set out in the Charitable Funds Policy and in accordance with donor wishes.
The Charity sits beneath the Trust and the Trust is considered the sole related party of the Charity. Any related party transactions between the Foundation Trust and the Charity are disclosed in the financial statements.
To provide assurance that appropriate standards of management and governance are maintained an independent advisory body has been commissioned to undertake a review. The resultant recommendations will be overseen by the Trust’s Audit Committee.
As at the 31 March 2022, the Charity comprised of 37 individual funds and these are listed on our summary registration on the Charity Commission website (www.charity-commission.gov.uk). Where there is a balance at the end of the period, these are disclosed in Note 12.
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. These funds are held on trust by the Corporate Trustee body.
The use of our funds is restricted by the Charity’s governing document, which established the Charity for purposes to benefit NHS patients. All grants are made from the Charity’s unrestricted and restricted funds. These funds comprise:

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Annual Report and Financial Statements 2021/22

Blackpool Victoria Hospital General Purposes Fund (Unrestricted Funds)

This fund is constituted of gifts received by the Charity, where donors have expressed no particular preference for its expenditure. Applications are received during the year from staff for approval by the Head of Fundraising up to £10,000 or the Charitable Funds Committee for requests of more than £10,000.

The Charitable Funds Committee makes decisions based on the contents of the paperwork submitted and, if required, will ask the applicant to make a presentation at a Committee meeting. The Corporate Trustee agrees areas of focus to enable the Charitable Funds Committee to prioritise funding accordingly.

Restricted and Designated Funds

These funds usually contain donations when the donor nominates a particular activity, ward or department of the Trust at the time of their donation. Donations made to restricted funds are binding on the Corporate Trustee, and those made to designated funds are not binding on the Corporate Trustee. The delegated Fund Advisors, who make recommendations on how to spend the money within their area, oversee the funds. Once these recommendations are agreed the funds can be spent at any time. Applications are received by the Charitable Funds Committee for approval of expenditure of more than £10,000.

The Corporate Trustee has implemented a formal scheme of delegation, whereby Fund Advisors (senior managers or clinicians who oversee the day-to-day management of the fund) are authorised to approve expenditure up to £10,000 from restricted funds. Expenditure over £10,000 is approved by the Charitable Funds Committee and all applications for funding of more that £50,000 are approved by the Corporate Trustee.
The Charity is a member of the Association of NHS Charities, whose main objective is to enhance the standing and work of all NHS Charities. Representatives from the Charity can attend training, events and meetings organised by the Association and benefit from the shared experience of the Association’s member charities.
The Charity is also registered as a member with the Fundraising Regulator. Registered organisations help promote best practice, defend the sector and demonstrate compliance with the law and it also opens up fundraising opportunities.

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Annual Report and Financial Statements 2021/22

Reference and Administrative Details for 2021/22

The Charity’s registered name is ‘Blackpool Teaching Hospitals Charitable Fund and Related Charities’ and its registered number is 1051570.
The Charity Commission approved the use of a working name, Blue Skies Hospitals Fund in 2007.
The Charity’s correspondence address and official correspondent during 2021/22:

Mr Paul Cunday (Associate Director of Finance – Operational Finance) until 30 November 2021 Mrs Laura Hunter-Cross (Head of Financial Services) from 1 December 2021 Home 7, Blackpool Victoria Hospital, Whinney Heys Road, Blackpool, FY3 8NR Email address: bfwh.blueskies@nhs.net

The Charity’s Corporate Trustee is Blackpool Teaching Hospitals NHS Foundation Trust, which was established on 1 December 2007. The members of the NHS Foundation Trust Board serve as members of the Charity Corporate Trustee. Members who served during the financial year 2021/22 and to the date of signing this report were as follows:

Mr Steve Fogg (Chairman)

Mr Kevin McGee (Chief Executive) until 13 September 2021

Mrs Patricia Armstrong-Child (Chief Executive) from 20 September 2021

Prof. Nicki Latham (Deputy Chief Executive/Director of Strategic Partnerships) until 20 December 2021

Mr Feroz Patel (Director of Finance)

Mrs Shelley Wright (Joint Executive Director of Communications) Mrs Catherine (Louise) Ludgrove (Executive Director of People and Culture) from 7 February 2022 Mrs Natalie Hudson (Chief Operating Officer)

Mrs Janet Barnsley (Director of Integrated Care and Performance) Mrs Esther Steel (Director of Corporate Governance) from 14 March 2022 Mr Peter Murphy (Director of Nursing)

Mr Kevin Moynes (Director of Human Resources & Organisational Development) until 31 January 2022

Mr Mark Cullinan (Non-Executive Director & Chairman of Charitable Funds) Dr Sheena Bedi (Non-Executive Director) until 31 August 2021 Mr Keith Case (Non-Executive Director) until 31 January 2022 Dr Jim Gardner (Non-Executive Director)

Mr James Wilkie (Non-Executive Director)

Members of the Charitable Funds Committee during 2021/22 were:

Mr Mark Cullinan (Charitable Funds Chairman & Non-Executive Director) Served from 1 February 2022

Mr Feroz Patel (Executive Director of Finance) Served from 1 December 2020

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Annual Report and Financial Statements 2021/22

Mrs Laura Hunter-Cross (Head of Financial Services, Blackpool Teaching Hospitals NHS Foundation Trust)

Served from 1 December 2021

Mr Paul Cunday (Associate Director of Finance – Operational Finance) Served to 30 November 2021

Others currently Serving

Feroz Patel (Director of Finance) Mr Steve Barrow (Deputy Director of Finance) Mrs Esther Steel (Director of Corporate Governance) Mr Peter Murphy (Director of Nursing) Mr Robert Ryan (Non-Executive Director) Mr Adrian Carridice-Davids (Non-Executive Director) from 4 October 2021 Miss Fiona Eccleston (Non-Executive Director) from 4 October 2021 Mr James Wilkie (Non-Executive Director) Mr Robert Ryan (Non-Executive Director) Mrs Kila Redfearn (Head of Fundraising, Blackpool Teaching Hospitals NHS Foundation Trust) Mrs Laura Hunter-Cross (Head of Financial Services) Dr Ranjit Moore (Governor, Blackpool Teaching Hospitals NHS Foundation Trust)

The Charity’s External Auditor during 2021/22 was:

Deloitte LLP One Trinity Gardens Broad Chare Newcastle Upon Tyne NE1 2HF

The Charity’s Bankers during 2021/22 were:

Royal Bank of Scotland PLC 36 St Andrew’s Square Edinburgh EH2 2YB

The Charity’s Solicitor during 2021/22 was:

Hempsons Solicitors Portland Tower Portland Street Manchester M1 3LF

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Annual Report and Financial Statements 2021/22

Trustee’s Responsibilities Statement

The Corporate Trustee (i.e. Trust) is responsible for preparing the Trustee’s Annual Report and the Financial Statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”.

The law applicable to charities in England and Wales requires the Corporate Trustee to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Charity and of the incoming resources and application of resources of the Charity for that period.

In preparing these financial statements, the Corporate Trustee is required to:

select suitable accounting policies and then apply them consistently
observe the methods and principles in the Charities SORP
make judgments and estimates that are reasonable and prudent
state whether applicable accounting standards, comprising FRS102, have been followed, and
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Charity will continue in business.

The Corporate Trustee is 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 the financial statements comply with the Charities Act 2011, The Charities (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 Corporate Trustee is responsible for the maintenance and integrity of the Charity and financial information included on the Charity’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

By Order of the Corporate Trustee

Date: 05 December 2022 Chairman, Robert Ryan Charitable Funds Committee

Date: 05 December 2022 Executive Director of Finance, Feroz Patel NHS Foundation Trust Board

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Annual Report and Financial Statements 2021/22

Independent auditor’s report to the trustee of Blackpool Teaching Hospitals Charitable Fund and Related Charities

Report on the audit of the financial statements

In our opinion the financial statements of Blackpool Teaching Hospitals Charitable Fund and Related Charities (the ‘Charity’):

give a true and fair view of the state of the Charity’s affairs on 31 March 2022 and of its incoming resources and application of resources for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice, including Financial Reporting Standard 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”; and
have been prepared in accordance with the Charities Act 2011.

We have audited the financial statements which comprise:

the statement of financial activities;
the balance sheet;
the cash flow statement;
the statement of accounting policies; and
the related notes 1 to 12.

The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (United Kingdom Generally Accepted Accounting Practice).

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor's responsibilities for the audit of the financial statements section of our report.

We are independent of the Charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the Financial Reporting Council’s (the ‘FRC’s’) Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

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

Other information

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 contained within the annual report. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

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Annual Report and Financial Statements 2021/22

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 during the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Responsibilities of trustee

As explained more fully in the trustee’s responsibilities statement, the trustee is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustee determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustee is responsible for assessing the Charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustee either intends to liquidate the 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 149 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements 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 based on these financial statements.

A further description of our responsibilities for the audit of the financial statements is located on the FRC’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Extent to which the audit was considered capable of detecting irregularities, including fraud Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

We considered the nature of the Charity’s industry and its control environment and reviewed the Charity’s documentation of their policies and procedures relating to fraud and compliance with laws and regulations. We also enquired of management and those charged with governance about their own identification and assessment of the risks of irregularities.

We obtained an understanding of the legal and regulatory framework that the Charity operates in, and identified the key laws and regulations that:

had a direct effect on the determination of material amounts and disclosures in the financial statements, being the UK Charities Act; and
do not have a direct effect on the financial statements but compliance with which may be fundamental to the Charity’s ability to operate or to avoid a material penalty. These included the Charity Commission for England and Wales (Charity Commission) regulations.

We discussed among the audit engagement team regarding the opportunities and incentives that may exist within the organisation for fraud and how and where fraud might occur in the financial statements. As a result of performing the above, we identified the greatest potential for fraud in the following area, and our specific procedures performed to address it are described below:

We pinpointed the risk of fraud through material misstatement to the risk of completeness of legacy income, particularly legacies notified but not yet received. In addressing this risk, we performed detailed testing of legacy income through testing a sample of items selected from post year end legacy income

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Annual Report and Financial Statements 2021/22

and tracing it through to the official receipts or other source documentation to determine the correct period of recognition.

In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments; assessed whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business.

In addition to the above, our procedures to respond to the risks identified included the following:

reviewing financial statement disclosures by testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;
performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;
enquiring of management, internal audit and in-house / external legal counsel concerning actual and potential litigation and claims, and instances of non-compliance with laws and regulations; and
reading minutes of meetings of those charged with governance and reviewing correspondence with Charity Commission.

Report on other legal and regulatory requirements

Matters on which we are required to report by exception

Under the Charities (Accounts and Reports) Regulations 2008 we are required to report in respect of the following matters if, in our opinion:

the information given in the financial statements is inconsistent in any material respect with the trustee’s report; or
sufficient accounting records have not been kept by the Charity; or
the Charity financial statements are not in agreement with the accounting records and returns; or
we have not received all the information and explanations we require for our audit.

We have nothing to report in respect of these matters.

Use of our report

This report is made solely to the Charity’s trustee, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the 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 trustee as a body, for our audit work, for this report, or for the opinions we have formed.

Deloitte LLP Statutory Auditor Newcastle Upon Tyne, United Kingdom 08 November 2022

Deloitte LLP is eligible for appointment as auditor for the Charity by virtue of its eligibility for appointment as audit of a company under section 1212 of the Companies Act 2006.

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Annual Report and Financial Statements 2021/22

Statement of Financial Activities

Year ended 31 March 2022

Statement of Financial Activities for the year ended 31st March 2022

Unrestricted funds £000	Restricted funds £000	Total funds 2021/22 Unrestricted funds 2020/21 Restricted funds 2020/21 Total funds 2020/21 £000 £000 £000 £000 480 594 159 753 1 - - - 481 594 159 753 200 110 100 210 0 0 149 95 118 213 188 208 44 252 7 9 18 27 36 1 23 24 - 99 158 257 41 22 20 42
279 -	201 1
279	202
119 66 121 1 16 - 24	81 83 67 6 20 - 17
347	274	621 544 481 1,025
(68) 804	(72) 562	(140) 50 (322) (272) 1,366 754 884 1,638 1,226 804 562 1,366
736	490

There were no other recognised gains or losses other than those listed above and the net income for the year. All income and expenditure is derived from continuing activities.

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Annual Report and Financial Statements 2021/22

Balance Sheet as at 31 March 2022

Note	Total funds 31 March 2022	Total funds 31 March 2021

	£000	£000
Current assets:

Stock Debtors 4 5	2 50	- -
Cash at bank and in hand 9	1,350	1,427
Total current assets	1,402	1,427

Liabilities:

Creditors: amounts falling due within one year 6	176	61
Net current assets	1,226	1,366

Total net assets	1,226	1,366

The funds of the Charity:

Restricted income funds 12	490	562
Unrestricted income funds 12	736	804
Total Charity funds	1,226	1,366

The notes on pages 17 to 25 form part of these financial statements.

The Charitable Funds Committee and Corporate Trustee approved the financial statements.

The financial statements on pages 14 to 16 were approved by the Corporate Trustee on 08/11/2022 and signed on its behalf by:

Date: 05 Decemeber 2022

Mr Robert Ryan Non-Executive Director

Chair of the Charitable Funds Committee

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Annual Report and Financial Statements 2021/22

Statement of Cash Flows for the year ended 31 March 2022

	2021/22 £000 2020/21 £000
Cash flows from operating activities:

Reconciliation of net income to net cash flow from operating activities

Net (expense)/income as per the SOFA	(140) (272)

Adjusted for:
(Increase)/decrease in debtors (Increase)/decrease in stock	(50) (2) 21 -
Increase/(decrease) in creditors	115 (131)

Net cash (used in) / generated from operating activities	(77) (382)

Net (decrease) / increase in cash and cash equivalents	(77) (382)
Cash and cash equivalents at beginning of year	1,427 1,809

Cash and cash equivalents at the end of the year	1,350 1,427

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Annual Report and Financial Statements 2021/22

Notes to the Financial Statements

Year ended 31 March 2022

General Information

Blackpool Teaching Hospitals Charitable Fund and Related Charities is registered with the Charity Commission (registered Charity number 1051570) in accordance with the Charities Act 2011. The Charity Commission approved the use of a working name, Blue Skies Hospitals Fund in 2007. The funds are held on trust by Blackpool Teaching Hospitals NHS Foundation Trust as a corporate body. It has existed in its present form since 2003. The Trust, as a Corporate Trustee, is managed by a Board of Directors.

Blue Skies Hospitals Fund exists to support the best in healthcare and medical research at Blackpool Teaching Hospitals NHS Foundation Trust. The registered office is given on page 8.

1. Accounting Policies

1.1 Basis of preparation

The financial statements are prepared under the historical cost convention, in accordance with the accounting policies set out in notes to the accounts and comply with the Charities Act 2011 and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with FRS 102 published in October 2019.

1.2 Going concern

The 2021/22 financial statements for the Blackpool Teaching Hospitals Charitable Fund and Related Charities have been prepared on a going concern basis.

There are no material uncertainties affecting the current year’s financial statements.

The Charity is dependent on discretionary income, therefore does not forecast cash flows but instead undertakes regular reviews of income and expenditure to manage cash balances and ensure the Charity continues as a going concern.

The Charity seeks to maintain sufficient unrestricted funds to cover foreseeable committed expenditure in the event of reductions in income.

1.3 Public Benefit

Blackpool Teaching Hospitals Charitable Fund and Related Charities is considered a public benefit entity as defined by FRS 102.

1.4 Incoming Resources

(i) All incoming resources are included in full in the Statement of Financial Activities as soon as the following three factors can be met:
entitlement – arises when a particular resource is receivable or the Charity’s right becomes legally enforceable;
certainty – when there is reasonable certainty that the incoming resource will be received; and
measurement – when the monetary value of the incoming resources can be measured with sufficient reliability.

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Annual Report and Financial Statements 2021/22

Notes to the Financial Statements (continued)

Year ended 31 March 2022

(ii) No gifts in kind have been received.
(iii) No intangible income has been received.
(iv) Legacies are accounted for as incoming resources when the executor of the estate has determined that a payment can be made following the agreement of the estate's accounts, or on notification by the executors that payment will be made.
(v) None of the incoming resources reported in the Statement of Financial Activities are shown net of expenditure.

1.5 Resources Expended

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required, and the amount of the obligation can be measured reliably. It is probable that settlement will be required, and the amount of the obligation can be measured reliably. Most activities of the Charity are outside the scope of VAT and, in general, output tax does not apply and input tax on purchases is not recoverable. Irrecoverable VAT is charged to the relevant expenditure category.

(i) Charitable activities

The total resources expended are in furtherance of the objectives of the Charity.

(ii) Cost of generating voluntary income

The costs of generating voluntary income include costs of the Fundraising Department including the full cost of the Head of Fundraising and fundraising office support staff. Other fundraising costs include promoting the Charity, travel expenses, costs incurred during fundraising events and the day to day running expenses.

(iii) Governance costs

Governance costs include the cost of finance function support cost £12,500 (2020/21 £12,500) and administration charge for overheads (equivalent to 1% of aggregate balances).

1.6 Funds Structure

Where there is a legal restriction on the purpose to which a fund may be put, the fund is classified in the financial statements as a restricted or designated fund. Other funds are classified as unrestricted funds.

1.7 Assets

The Charity holds no fixed tangible or intangible assets or fixed asset investments.

Stocks is measured at the lower of the cost and net realisable value.

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Annual Report and Financial Statements 2021/22

Notes to the Financial Statements (continued)

Year ended 31 March 2022

Debtors are measured at their recoverable amounts (the amount the Charity anticipates it will receive from a debt).

Cash is held in the Charity’s bank account.

1.8 Liabilities

The Charity holds no long-term creditors or provisions. Furthermore, it holds no loans (bank or otherwise) and does not have an overdraft.

Trade creditors falling due within one year relate to amounts owed to Blackpool Teaching Hospitals NHS Foundation Trust or an external supplier. Creditors are recognised based on point of receipt of goods or services.

The Charity does not own any fixed assets, therefore has no capital commitments.

1.9 Investment income

The Charity does not hold any investments. Investment income is derived from interest earned on funds held in the Charity’s bank account. Income is accounted for in the period in which it is received and apportioned between funds based on the average of the opening and closing fund balance.

1.10 Pensions

For staff recharged to the Charity via the payroll of Blackpool Teaching Hospitals NHS Foundation Trust, employee pension contributions are subject to the terms and conditions of the NHS Pension Scheme as operated by the Trust (See the Blackpool Teaching Hospitals NHS Foundation Trust Annual Report and Annual Accounts 2021/22 for further details).

1.11 Analysis of support costs and overheads

All support costs and overheads are included in miscellaneous costs (see note 3). Support costs and overheads are apportioned between funds on an allocation basis based on the reserve year-end final balance.

1.12 Post Balance Sheet events

There have been no post balance sheet events to report.

1.13 Taxation

The Charity is a registered Charity, and as such is entitled to certain tax exemptions on income and profits from investments, and surpluses on any trading activities carried on in furtherance of the Charity’s primary objectives, if these profits and surpluses are applied solely for charitable purposes.

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Annual Report and Financial Statements 2021/22

Notes to the Financial Statements (continued)

Year ended 31 March 2022

2. Donations and legacies

2. Donations and legacies
	Unrestricted funds Restricted funds Total funds 2021/22 Total funds 2020/21

	£000 £000 £000 £000
Donations	127 77 204 182
Fundraising	80 35 115 106
Grants	- - - 186
Legacies	72 89 161 279
Total	279 201 480 753

Donations from individuals are gifts from members of the public, relatives of patients and staff.

3. Expenditure

3.1 Fundraising

Staff costs Other fundraising costs Total	Unrestricted funds Restricted funds Total funds 2021/22 Total funds 2020/21 £000 £000 £000 £000 90 61 151 157 29 20 49 53
	119 81 200 210

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Annual Report and Financial Statements 2021/22

Notes to the Financial Statements (continued)

Year ended 31 March 2022

3. Expenditure (continued)

3.2 Governance costs

3.2 Governance cost

Audit fee Bank charges Finance Support Administration Charge Total Blackpool Teaching Hospitals NHSFT Service Charges:	Unrestricted funds Restricted funds Total funds 2021/22 Total funds 2020/21 £000 £000 £000 £000 7 5 12 10 2 1 3 3 7 5 12 13 8 6 14 16
	24 17 41 42

3.3 Staff costs

The Charity does not directly employ any staff (2020/21: nil). Blackpool Teaching Hospitals NHS Foundation Trust employs one Head of Fundraising, one Community Fundraiser, one Communications Officer and one Office Manager.

In 2021/22, the Charity indirectly employed 3.78 WTE (2020/21 Restated: 4.40 WTE).

The cost of staff included in governance costs employed by Blackpool Teaching Hospitals NHS Foundation Trust and charged to the Charity are:

Salaries and Wages Social Security Costs Employer’s Pension contributions Total	2021/22 2020/21 £000 £000 123 127 12 12 16 18
	151 157

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Annual Report and Financial Statements 2021/22

Notes to the Financial Statements (continued)

Year ended 31 March 2022

3. Expenditure (continued)

3.3 Staff costs (continued)

	2021/22	2020/21
	£000	£000
Employer’s pension scheme contribution for highest
paid staff member	7	7
	2021/22	2020/21
	Number	Number
Number of staff to whom benefits are accruing under
the NHS Pension Scheme	4	5
Staff emoluments for the year fell within the following bandings
Salary bands of £5,000:	2021/22	2020/21
	Number	Number
10 - 15	1	1
15 - 20	1	-
20 - 25	1	2
25 - 30	1	1
40 - 45	-	-
45 - 50	1	1

There are no (2020/21: none) employees with emoluments above £60,000.

No members of the body that comprise the Corporate Trustee have been paid any remuneration or received any other benefits from an employment with the Charity.

4. Stock

The Charity holds an inventory of goods purchased for resale in the charity shop of £2k (2020/21: Nil).

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Annual Report and Financial Statements 2021/22

Notes to the Financial Statements (continued)

Year ended 31 March 2022

5. Debtors

. Debtors
	Total funds 2021/22 £000 Total funds 2020/21 £000
Amounts falling due within one year:
Other debtors	50 -
Total	50 -

6. Creditors: amounts falling due within one year

	Total funds 2021/22 £000 Total funds 2020/21 £000
Amounts falling due within one year:
Audit fee	12 11
Other creditors	164 50
Total	176 61

7. Auditor’s remuneration

The auditor’s remuneration for the audit of the 2021/22 financial statements was £12,000 (2020/21: £10,800). All fees related solely to the audit, with no other additional work undertaken in relation to the Charity. Amounts stated are inclusive of VAT.

8. Investment income

	Total funds 2021/22 £000 Total funds 2020/21 £000
Interest on cash held in bank account	1 -

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Annual Report and Financial Statements 2021/22

Notes to the Financial Statements (continued)

Year ended 31 March 2022

9. Cash at bank and in hand

Government Banking Service Cash in hand Total	Total funds 31 March 2022 Total funds 31 March 2021 £000 £000 1,350 1,426 - 1
	1,350 1,427

10. Commitments

On 31 March 2022, the Charity had total commitments of £149,340 which had been approved by the Charitable Funds Committee (2020/21: £66,521).

11. Related party transactions

Blackpool Teaching Hospitals NHS Foundation Trust is managed by the Corporate Trustee which is also the Board of Directors of Blackpool Teaching Hospitals NHS Foundation Trust and which is the sole beneficiary of the Charity. During the year, none of the members of the NHS Foundation Trust Board or parties related to them were beneficiaries of the Charity.

During 2021/22 no members of the NHS Foundation Trust Board has received any payment from the Charity, including for reimbursement of expenses incurred (2020/21: None).

The Charity made revenue payments to the NHS Foundation Trust relating to governance costs and various other items of expenditure initially incurred by the NHS Foundation Trust and subsequently recharged to the Charity.

During 2021/22 the Charity made reimbursements to the Trust of £484,992 (2020/21 £1,235,658).

The balance owed by the Charity to the NHS Foundation Trust on 31 March 2022 was £112,136 (31 March 2021: £36,034).

The Charity is owed by the NHS Foundation Trust as at 31 March 2022 £0 (31 March 2021: £0).

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Annual Report and Financial Statements 2021/22

Notes to the Financial Statements (continued)

Year ended 31 March 2022

12. Analysis of Charitable Funds

Fund Analysis	Unrestricted Funds	Restricted Funds	Fund Balances 2021/22 Fund Balances 2020/21	Fund Balances 2021/22 Fund Balances 2020/21
	£000	£000	£000	£000
Designated Funds
Blackpool Victoria Hospital General Fund	736 -	- 1	736 804
Community and Other Funds			1	12
Medical Research Fund	-	19	19	23
Staff Amenities Fund	-	5	5	7
Specialist Medicine Fund	-	6	6	15
Cardiac Directorate Fund	-	145	145	227
Cancer Services Fund	-	156	156	120
The MRI Scanner and Imaging Equipment Fund	-	21	21 27
Emergency and Critical Care Fund	-	31	31	42
Women and Children's Fund	-	41	41	47
Clinical Support Fund	-	2	2	5
Specialist Surgery Fund	-	50	50	32
Bereavement Fund	-	13	13	5
Total Funds	736	490	1,226 1,366

The Blackpool Victoria Hospital General Fund has general objectives for any charitable purpose relating to Blackpool Teaching Hospitals NHS Foundation Trust.

The objectives of all restricted funds are designated in their title.

The governance costs have been apportioned as a percentage of each restricted fund’s balance sheet share of the Charity’s end of year balance.

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