Liverpool Heart and Chest Hospital Charity Annual Report 2023/24
Charity Registration Number 1052813
Contents
1 Chairman’s welcome
- 3 - 5 Who we are
6 - 8 Our achievements
9 - 11 Structure, governance and management
12 - 13 Contact us, trustee and advisors
14 - 32 Financial review
Reserves Policy Page 15 Investments Page 16
Fund expenditure Policy Page 17 Independent Examiners Report Page 18 Statement of Trustees Responsibilities Page 19 Statement of Financial Activities Page 20 Balance Sheet as of 31st March 2024 Page 21 Cash Flow Statement Page 22
Notes to the Accounts Page 23 - 32
Chairman’s welcome
Welcome to our annual report for 2023/24.
I started our welcome last year by describing the difficult economic climate that all charities, including LHCH Charity, are working under. Although there have been some small improvements during the past 12 months the environment for charities remains challenging.
However, I am happy to say that thanks to our wonderful supporters LHCH Charity income has remained stable and has even been able to report a small increase in donations during the year. This support is vital if we are to continue to support the outstanding hospital that we work in.
During the year we have been able to considerably improve and expand on the work of our cardio-oncology service. This service, one of only six in the UK provides help for those who have an existing heart condition and develop cancer, or who are “at risk” of developing heart problems due to the toxicity of their chemotherapy and radiotherapy treatments. Thanks to the generous support of the Sir Ken Dodd Charitable Foundation, we were able to provide them with a new 3D Echo which will provide faster and more accurate heart screening. In addition, we were able to support the post of specialist cardio-oncology nurse for a further 12 months as well as providing training and education for existing staff so that they remain at the forefront of best practice for those living with both heart disease and cancer.
In addition to assisting our Cardio-Oncology service we were delighted to help the family members and friends of our patients in Intensive Care. I am sure everyone can imagine the traumatic times that they are living through and the need to remain close at all times. To help make things a little better for them LHCH Charity was able to support the development of a new kitchen/rest area where they can have a hot drink or some food while staying close to their loved one.
These are only two examples of the difference that LHCH Charity can make to the lives of our patients, their families, and our staff. We wouldn’t be able to do any of this, of course, without our supporters who send their donations, run marathons, jump out of aeroplanes, or even knit things for our ever-popular Christmas knit sale. We owe them a huge debt of gratitude and thanks.
PROFESSOR BOB BURGOYNE Chair LHCH Charity
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Key highlights of our year
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Speeding treatment for patients with Cancer and Heart Disease
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Christmas Campaign helps to purchase state of the art Cardiac Output Monitors for patients most at risk following open heart surgery.
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Supporting education and training for complex interventional catheterisation techniques with specialist audio-visual equipment.
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Supporting end of life care with Keepsake Boxes and car parking passes.
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Providing new kitchen and rest facilities for patient’s families in the Intensive Care Unit.
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Who we are
The Object of LHCH Charity is:-
“For any charitable purpose or purposes relating to the National Health Service wholly or mainly for the service provided by Liverpool Heart and Chest Hospital NHS Foundation Trust.”
Aims of LHCH Charity:-
LHCH Charity aims to support Liverpool Heart and Chest Hospital in its care and treatment of patients, their families and staff by:
The latest and the best
LHCH Charity ensures that wherever possible our dedicated medical staff have access to the very latest and best equipment and training. In this way we can ensure that our patients are always receiving the most up to date treatments available.
Tomorrow’s medicine today
Research undertaken at Liverpool Heart and Chest Hospital could change the way heart and lung medicine is practised in the future. LHCH Charity supports these developments which help to change the future for generations to come.
Extending the excellence
Providing additional amenities and support for our patients, their families, and our staff. A prime example of this is supporting family members who have loved ones receiving end of life care with the provision of parking passes so that is one less thing they have to worry about.
By doing this LHCH Charity ensures that its legal purpose is fulfilled
How we achieve our aims
The strategy for achieving our aims breaks down into two separate strands:-
1. Working with the hospital and medical staff to identify areas of support which meet the aims and objectives of the hospital.
2. Developing fundraising strategies to achieve successful completion of campaigns for the identified areas.
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a) Identification of areas for support
LHCH Charity, in conjunction with the Consultants Fundraising Group, Charitable Funds Committee and the Executive Team of the hospital, identify projects that have criteria which fit within the three main aims. The projects are broken down by size in terms of cost into short, medium or longer term projects.
In addition, each of the Funds which sit underneath the charity umbrella have been requested to complete a form indicating how they propose to spend monies within each 12-month period. The recommendation for each Fund is that, in line with best practice, at least 33% of the Fund’s opening balance is spent within the year – unless they are planning on accumulating funds towards a specific service or item of equipment.
b) Fundraising Strategy for identified projects.
The Head of Fundraising produces a yearly strategy which identifies the potential for fundraising for the short term aims (usually required within the financial year) as well as providing details of plans for achieving medium and long-term goals.This strategy includes Income and Expenditure projections as well as a Fundraising Ratio Cost. This is approved by the Charitable Funds Committee and then ultimately the Corporate Trustee.
The Fundraising Strategy is then evaluated at each meeting of the Charitable Funds Committee in relation to its progress in achieving the support required for each of the projects.
How LHCH Charity fundraises
LHCH Charity is guided in all of its fundraising by the Code of Fundraising Practice. Campaigns are run and managed by the charity’s staff.The charity does not work with professional fundraisers or commercial participators in generating funds.
LHCH Charity and Social Investment
LHCH Charity was not involved in any social investment during the past 12 months.
LHCH Charity and Grant Making.
LHCH Charity was not involved in making grants to external organisations during the past 12 months but did make grants to internal projects as per our aims and objectives.
LHCH Charity and donated goods, services, and volunteers.
The charity does occasionally receive goods for re-sale at its offices in the hospital. These are recorded as gifts in kind items and processed through the till with other purchased merchandises. If a gift equalling more than £1,000 is received, then this is reported to the Charitable Funds Committee for noting.
The charity did not work with any volunteers during the past 12 months.
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Public Benefit
At the core of every charity is the requirement to provide benefit to the public. This is the foundation of their charitable status, and each charity must demonstrate how this requirement is met through their aims and activities.
The focus of our activities is to benefit the public who utilise the services of Liverpool Heart and Chest NHS Foundation Trust. This hospital mainly serves the communities of Merseyside, Cheshire, North Wales, Lancashire, and the Isle of Man, all of whom have equal access to its facilities. Charitable expenditure is made by way of direct grants to Liverpool Heart and Chest Hospital NHS Foundation Trust, to enhance the patient care already provided.
The Corporate Trustee refers to the Charity Commission guidance on achieving public benefit when reviewing the aims and objectives of the charity and in the planning of future activities.
During the year, the funds raised were distributed to provide a wide range of benefits, over and above, what would be expected from statutory sources to our patients, their families, and our staff.
By providing these grants the agents of the Corporate Trustee have complied with their duty to have due regard to the guidance on public benefit published by the Charities Commission in exercising their powers or duties.
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Our achievements
Support for Cardio-Oncology
During the year LHCH Charity was able to make a significant contribution to the development of our Cardio-Oncology service. One of only a handful of specialist services in the UK Cardio-Oncology cares for those who either have an existing heart condition and develop cancer or who are “at risk” of developing a heart condition due to the toxicity of their chemo or radiotherapy treatments.
Over the 5 years since its introduction at LHCH the service has grown from operating one clinic every fortnight, to two a week and now sees over six hundred patients a year with demand rising every day.
The key to providing an effective cardio-oncology service is to be able to produce a speedy risk stratification of patients to map out their on-going treatment. This is vital as all decisions in terms of medication, devices and potentially stopping oncology treatment depend on the results of this stratification. To provide aa the stratification the service needed the dedicated use of a 3D Echo machine, as opposed to the standard NHS 2D machine. LHCH Charity was able to provide this and more with additional funds supporting the post a specialist cardio-oncology nurse for a further year as well as providing a training and education budget enabling them to stay at the forefront of the latest developments in this relatively new field.
A different view
The Adult Congenital Heart Disease service at LHCH is the second largest service of its kind outside of London. It is estimated that across the North-West of England approximately 25,000 young people are growing up with a heart condition they were born with.
As a Level 1 service provider (capable of dealing with the most seriously ill) it is inevitable that many of our patients will also have non-cardiac related issues including learning difficulties.
For those with learning difficulties the frequent monitoring and testing for their heart condition can be especially distressing. This distress can often lead to either failed tests or the need to repeat due to movement which exacerbates the situation even more – as well as slowing down the service for other users.
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An ACHD Consultant approached LHCH Charity with the novel idea of purchasing Virtual Reality Goggles for patients who are particularly distressed. In this way they are removed from the frightening environment they feel they are in, and they can watch films or cartoons instead – calming them down, removing the need for re-testing and ensuring a more efficient service.
Making the end a little easier
Losing someone you love is never easy and our End-of-Life Care Team do everything possible to make this most difficult of times easier in every way. LHCH Charity supports them by providing funds to purchase keepsake boxes where special memories can be placed.
Monitoring our Performance
LHCH Charity, through the Charitable Funds Committee and ultimately the Corporate Trustee, benchmark its performance in a number of ways: -
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It identifies fundraising projects and measures its fundraising achievement against the target set for the completion of each project.
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It reviews the external factors which may affect the charity including national and local economic forecasts.
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It provides comparator information with similar charities and measures itself against them in terms of performance, percentage fundraising costs and return on investment.
LHCH Charity achieved significant success during the year but did not quite reach its fundraising target due to changes in the capital campaign.
Despite this a figure of £730k – a 5.34% increase on the previous year. This was raised from a good balance of major gifts from charitable trusts, legacies, companies, and donations from our supporters.
How our supporters helped
Our supporters continue to provide outstanding assistance in helping LHCH Charity make a difference for our patients, their families, and our staff. During the year they showed, once again, that they would go to extraordinary lengths to raise funds including: -
Lunt’s Heath Primary showed that you don’t have to be a grown up to raise BIG funds.They chose LHCH Charity as their Charity of the Year when 5-year-old Jude’s grandad was treated at LHCH. As well has having a wonderful cake sale they organised a giant Skipathon and our mini supporters raised an astonishing £2,666 on the day!
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Not to be shamed by the little ‘uns, the pupils at Grange Senior School held their annual Rowathon for LHCH. With more than thirty pupils taking part they rowed over 1.5 million kms during the 24-hour period raising £3,485. To date the wonderful pupils have raised over £14,000 for LHCH all in memory of their friend John Nesbitt
Our Estates Department have always been great supporters of the charity and its work and as well as daring the many obstacles of the Tough Mudder, including freezing mud puddles, and being blasted by a fire hose over a 5-hour period. Battered and bruised they emerged having raised over £3,000!
As if that wasn’t enough Head of Capital Projects, Dave MacMillan then went on to run twelve marathons over a 31-day period raising a further £6,500.
Christmas is always a special time and its no different at LHCH Charity. Our Christmas campaign this year featured Laura, a young teacher who underwent life-saving open heart surgery at LHCH.Laura’s story obviously touched many people making it our most successful Christmas Campaign ever raising over £38,000.
Of course, not everyone ran marathons, rowed a million kilometres, or skipped until they dropped. Some baked cakes, some knitted garments for our Knit Sale or just joined our lottery or In for a Pound Club. Whatever you did you all helped to make lives better for the thousands of people who rely on Liverpool Heart and Chest Hospital.
To everyone who supported LHCH Charity during the year thank you sometimes just doesn’t seem enough for all that you do. Rest assured though our gratitude and appreciation of each and everyone one you simply can’t be measured.
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How You Can Help
You can get involved with LHCH Charity by:-
Ringing the Charity Office on: 0151 600 1409
Email us at enquiries@lhchcharity.org.uk
Writing to us at: LHCH Charity, Thomas Drive, Liverpool L14 3PE
Structure, governance and management
Charity Structure
LHCH Charity is an umbrella charity which holds a number of individual funds under one Charity Registration Number (Charity Registration Number 1052813). The overall responsibility for the running of the charity lies with the Corporate Trustee i.e., the Board of Directors of Liverpool Heart and Chest Hospital.
The Charitable Funds Committee is established as a Committee of the Board of Directors of Liverpool Heart and Chest Hospital Foundation NHS Trust in order to ensure that the Trust’s duty as Corporate Trustee of its Charitable Funds has been discharged.
The Charitable Funds Committee operates within the Terms of Reference authorised by the Board of Directors of Liverpool Heart and Chest Hospital NHS Foundation Trust. The Committee has now executive powers other than those specifically delegated in its Terms of Reference which are: -
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Develop the strategy and objectives for the Charity for consideration and approval by the Corporate Trustee
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Oversee the implementation of an infrastructure appropriate to the efficient and effective running of the Charity.
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Oversee the development and delivery of the Fundraising Strategy, as aligned to the Trust’s annual plan.
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Oversee the expenditure of the Charity.
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Oversee the Charity’s investment plans.
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Monitor the performance of all aspects of the Charity’s activities and ensure that it adheres to the principles of good governance and complies with all legal requirements. Act as the Committee that discharges the Board’s responsibilities (as sole Corporate Trustee) as they relate to the charitable funds under the Trust’s custodianship. Ensure that the charitable funds held by the Trust are managed in a manner consistent with the requirements of the relevant regulatory and statutory frameworks, and in accordance with the guidance on NHS Charities set out by the Charity Commission.
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When in this role act solely in the best interests of the Charity and in a manner consistent with the Charity Commission’s requirements and expectations of the Corporate Trustee. Oversee the Charity’s strategy, governance, major plans, and key risks on behalf of the Corporate Trustee.
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Establish, prioritise, and approve major fundraising projects in accordance with the strategy and approve financial expenditure items in accordance with delegated authority levels set out in Standing Financial Instructions.
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Monitor the performance of fundraising and marketing activity, ensuring that the return on investment is satisfactory and that income targets are met.
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Devise and implement an investment strategy for the charity, including the appointment and monitoring of any investment managers.
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Ensure the approval and submission of statutory returns, annual accounts, and Trustee’s Report in accordance with the Charity Commission’s State of Recommended Practice. Approve any policies and procedures required for the effective management of the Fund. Members of the Charitable Funds Committee attend quarterly Charitable Funds meetings.
Recruitment and appointment of Trustees
Non-Executive Members of the Board of Directors are appointed by the Council of Governors and Executive Members of the Board are subject to recruitment by the Nominations and Remuneration Committee (Executive). Members of the Board of Directors and the Charitable Funds Committee are not individual Trustees under charity law but act as agents on behalf of the Corporate Trustee.
Trustee Training and Induction.
The Trust sees Trustee training as important and has provided access to resources and materials including: -
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As a member of NHS Charities Together they regularly receive updates from this source.In addition Trustees were able to attend a number of courses organised by NHSCT including “Legal Issues for Charities”, “Accounting, Audit and Governance”, and “Festival of Trusteeship”.
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Trustees also have the opportunity to access the Resource Library provided by the Fundraising Regulator which has a wide range of guidance for Trustees.
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Trustees have regular meetings with CCLA (the Charity’s Investment Managers) who provide briefings on the status of the current portfolio, the results and predicted future performance.
Trustee Duties
The Corporate Trustee fulfils its legal duty by ensuring that funds are spent in accordance with the objects of each Fund and by designating funds, the Trustee respects the wishes of our generous donors for the advancement of health or saving lives, to provide patient and staff benefit or for the advancement of education and research.
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Day to Day Management
The Trust has in place a Scheme of Reservation and Delegation to support the day-to-day management of the Charity.
The Head of Fundraising oversees the day to day running of the Charity and the planning of its fundraising activities. The Head of Financial Services acts as the principal officer overseeing the day-to-day financial management and accounting for the charitable funds during the year.
The Charity does not directly employ any staff. The Charity funds staffing costs of fundraising and administrative staff who run and support the Charity. These staffing contracts are held by the Foundation Trust and recharged accordingly.Pay grades for those working within the Charity are set using NHS Pay Scales.
Related Parties
Liverpool Heart and Chest Hospital NHS Foundation Trust is the main beneficiary of the Charity and is a related party by virtue of being Corporate Trustee of the Charity. The accounts of the Charity are not consolidated into the accounts of the Trust as they are not material.
Charitable Funds
The Charity’s Unrestricted Fund was established using the Model Declaration of Trust and all funds held on trust as at the date of registration were part of this unrestricted fund. Subsequent donations and gifts received by the Charity that are attributable to the original fund are added to those fund balances within the existing charity.
Risk Management
Using the NHS Trust’s own Risk Register policies and procedures, the Trustees have considered potential risks to which the charity is exposed. The LHCH Charity Risk Register is reviewed annually by the Charitable Funds Committee.
There are no major risks that have been identified.
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Contact us, Trustee and Advisors
Liverpool Heart and Chest Hospital Charity (Previous names, The Heart Appeal, the Merseybeat Appeal) Registered Charity Number: 1052813
Members of the Liverpool Heart and Chest Hospital Board of Directors who served during the financial year were as follows:-
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Principal Financial Advisor
Responsibility for the on-going management of funds is delegated by the Corporate Trustee to the Charitable Funds Committee which administers the funds on behalf of the Corporate Trustee. The names of the people who served as agents for the Corporate Trustee, as permitted under Regulations 16 of the NHS Trust’s (Membership and Procedures) Regulations 1990 were as follows:-
Principal office
The principal office for the charity is: Liverpool Heart and Chest Hospital Charity Thomas Drive Liverpool L14 3PE
For more information on the LHCH Charity please visit our website at www.lhchcharity.org.uk ~~—____-~~
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Financial Review
The financial statements have been prepared in accordance with the historic cost basis, with the exception of investments which are included at re-valued amounts. The financial statements have been prepared on the on-going concern basis and in accordance with the Statement of Recommended Practice “Accounting and Reporting by Charities (SORP 2015)” issued in March 2015, applicable to charities preparing their accounts in accordance with the financial reporting standard applicable in the UK and Republic of Ireland (FRS 102), effective 1st January 2015.
The net assets of the charitable fund as of 31st March 2024 were £1,229k (2022/23 £1,520k), a decrease of £291k during the financial year. Total incoming resources this year amounted to £730k (2022/23 £693K). Legacy income was lower than the year before amounting to some £85k compared to £197K in the previous year.
Of the total expenditure of £1,170k (2022/23 £1,016K), expenditure on charitable activities was £942k (2022/23 £821K) and expenditure on raising funds was £224k (2022/23 £191K).
Income summary table
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Going Concern
The Trustee has a reasonable expectation that the Charity has adequate resources to continue as a going concern. Expenditure is discretionary and balanced against the reserves policy requirements.Accounting for income and expenditure is on an accruals basis to ensure all committed expenditure is reflected in the reporting process, and the Charity has sufficient resources to meet all its committed expenditure for 12 months from the date that the financial statements were approved by the Charitable Funds Committee.
Reserves policy
The Trustee is under a legal duty to apply charitable funds within a reasonable time of receiving them.In order to comply with this duty, the Trustee has developed a reserves policy to explain the level of reserves held and set out how they will be managed.
The Reserves Policy applies to unrestricted funds, and states that the level of reserves should be sufficient to:-
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Ensure stability of grant funding.
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Cover between one to three years administration, fund-raising, and support costs; and
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Maintain the level of investments at its current level in order to mitigate against significant fluctuations in the levels of donations.
Therefore, the Trustee considers it prudent that the target range of unrestricted reserves is between £500,000 and £3,000,000 to ensure that the Charity can run efficiently and meet the needs of its beneficiaries. The balance sheet shows that the unrestricted reserves is £1,229k at the end of the financial year which is within the reserves range required by the Policy.
Restricted Funds are excluded from this Policy, in accordance with the Charity Commission guidance, as they are subject to specific trusts and are not fully expendable at the discretion of the Trustee.
On an annual basis, the funds will be examined to ensure compliance with this Reserves Policy.
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Plans for the Future
In the coming years LHCH Charity aims to continue its work in raising funds to support Liverpool Heart and Chest Hospital. In particular during the next twelve months, we are seeking to expand our work in under-represented funding streams such as corporate income and widen our community and events activities. In addition, although planning for major capital campaigns had several setbacks during the financial year, we will continue to work with medical staff to identify potential schemes for inclusion in major fundraising.
Investment Policy
The Charity conforms to the investment powers given by the Charity Commission order for an NHS umbrella charity and the Trustee Act 2000.
Charitable funds are invested by the Chief Finance Officer in accordance with the Trust’s policy and subject to statutory requirements.
The members of the Charitable Funds Committee review the performance of investment and banking at the quarterly meetings. The Committee has decided that the Charities Official Investment Fund (COIF) is to be used for the investment of charitable funds. In year, the Committee has chosen to invest their monies in the COIF Charities Ethical Fund as this aligns with the Trust values and overall strategy as there are tighter restrictions on alcohol, tobacco, and fossil fuels.
Amounts to be invested with COIF are decided by the Charitable Funds Committee. The amount originally invested in COIF was £400K. A further £300K was invested in September 2021.This investment has a current market value, as of 31st March 2024 of £1,291k (31/03/23 £1,141K).
At the end of the financial year the charity held £664k (2022/23 £510k) in an instant access bank account. The Charity has adopted the Trust’s policy on investments meaning that all cash balances must remain in a comparatively liquid form. All investments resulting must be realisable and have maturity not exceeding three months. The Charity has one investment with COIF, which can be withdrawn within seven days – in line with Trust policy.
Cash Deposits are invested in accordance with the Trust’s Treasury Management Policy which has been adopted by the Charity.
Short-Term Investments should be invested with banks rated A+ Moody’s rating.
Long-Term Investments should be invested with banks rage A+ Moody’s rating. Dividends received are allocated to individual designated funds in proportion to their average closing balances for the relevant quarter.
The risk associated with the normal fluctuation in the value of investments are mitigated by holding investments in a diversified fund of investments and by only investing funds not required in the short or medium term.
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Funds Expenditure Policy
Expenditure against any Charitable Fund is conditional upon the item being within the terms of the appropriate fund and the procedures approved by the Board of Directors. Before expenditure is incurred consideration is given to the following: -
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The funds may be used for the benefit of hospital staff (both clinical and support) as long as it is line with the objective of the fund, and it does not go beyond what a good employer would consider reasonable to provide.
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The funds cannot be used to campaign or lobby on behalf of the Trust.
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It should comply with the requirements of the Charities Act 2006 on the Public Benefit Test where there is an identifiable benefit or benefits, and this benefit must be to the public or section of the public.
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Should generally not be spent for the benefit of specific individuals.
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To supplement the remuneration (directly or indirectly) of offices.
The authorised signatories must consider the following:
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That the expenditure is within the general and specific restrictions placed upon the funds (the authorising officer must be aware of these).
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Must be applied for the purposes set out in the Governing Document.
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That the funds are not freely available from other sources.
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Must be applied with complete fairness between persons who are properly qualified to benefit from it.
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INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES OF LIVERPOOL HEART AND CHEST HOSPITAL
I report to the trustees on my examination of the accounts Liverpool Heart and chest Hospital (Charity No: 1052813) for the year ended 31st March 2023, which are set out on pages 20 to 32.
Responsibilities and basis of report
As the charity trustees, you are responsible for the preparation of the accounts in accordance with the Charities Act 2011 (“the Act”).
I report in respect of my examination of the Charity’s accounts carried out under section 145 of the 2011 Act and in carrying out my examination, I have followed all the applicable directions given by the Charity Commission under section 145(5)(b) of the Act.
Independent examiner’s statement
The charity’s gross income exceeded £250,000 and I am qualified to undertake the examination by being a qualified member of the Institute of Chartered Accountants in England and Wales.
I have completed my examination. I can confirm that no material matters have come to my attention in connection with the examination which gives me cause to believe in, any material respect,:
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the accounting records were not kept in accordance with section 130 of the Act; or the accounts did not accord with the accounting records; or
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the accounts did not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair’ view which is not a matter considered as part of an independent examination.
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
Alastair Jeffcott Mclintocks (NW) Limited 2 Hilliards Court Chester Business Park CHESTER CH4 9QP
Date 25/6/2024
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Annual accounts 2023/24
Trustee Responsibility Statements.
The Trustees are responsible for preparing the Trustees Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
The law applicable to charities in England and Wales requires the Trustees 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 year.
In preparing these financial statements, the Trustees are required to:
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Select suitable accounting policies and then apply them consistently. Observe the methods and principles in the Charities SORP.
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Make judgements and estimates that are reasonable and prudent.
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State whether application accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue its operation.
The Trustees are responsible for keeping sufficient 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 Charity (Accounts and Reports) Regulations 2008 and the provisions of the Trust Deed. They are also responsible for safeguarding the assets for the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Signed on behalf of the trustee:
Bob Burgoyne Chair of Charitable Funds Committee
James Thomson LHCH Chief Finance Officer Financial Trustee
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Liverpool Heart & Chest Hospital Charity Charity Number 1052813 Annual Accounts for year ended 2023/24
Foreword
The Charity was created in 1996 under statutory instrument
The Charity exists for any charitable purpose or other purpose relating to the NHS wholly or mainly for the service provided by Liverpool Heart & Chest Hospital NHS Foundation Trust
Charitable Trust Accounts - Liverpool Heart & Chest Hospital Charity - 2023/24
Statement of Financial Activities for the year ended 31 March 2024
| 2023-24 | 2023-24 | 2023-24 | 2022-23 | ||
|---|---|---|---|---|---|
| Note | Unrestricted | Restricted | Total | Total | |
| Funds | Funds | Funds | Funds | ||
| £000 | £000 | £000 | £000 | ||
| Income and endowments from: | 1.3 | ||||
| Donations and legacies | 4.5 | 645 | 0 | 645 | 604 |
| Other trading activities | 4.6 | 12 | 0 | 12 | 13 |
| Income from Investments | 2 | 0 | 2 | 2 | |
| Income from Charitable activities | 6.4 | 70 | 0 | 70 | 74 |
| Total income and endowments | 729 | 0 | 729 | 693 | |
| Expenditure on: | 1.6, 1.7, 3.1, 4.1 | ||||
| Raising funds | 1.9, 4.2 | (224) | 0 | (224) | (191) |
| Charitable activities | 4.3 | (850) | (92) | (942) | (821) |
| Other expenditure | 4.4 | (4) | 0 | (4) | (4) |
| Total expenditure | (1,078) | (92) | (1,170) | (1,016) | |
| Net gains/( losses) on investments | 6.3 | 150 | 0 | 150 | (23) |
| Net income/(expenditure) and net movement in funds | (199) | (92) | (291) | (346) | |
| Reconciliation of funds: | |||||
| Total funds brought forward | 1,520 | 0 | 1,520 | 1,866 | |
| Total funds carried forward | 1,321 | (92) | 1,229 | 1,520 |
Page 20
Charitable Trust Accounts - Liverpool Heart & Chest Hospital Charity - 2023/24
Balance Sheet as at 31 March 2024
| Notes | Total at | Total at | |
|---|---|---|---|
| 31 March 2024 | 31 March 2023 | ||
| £000 | £000 | ||
| Fixed Assets | |||
| Investments | 1.10, 6.1, 6.2 | 1,291 | 1,141 |
| Total Fixed Assets | 1,291 | 1,141 | |
| Current Assets | |||
| Debtors | 7.1 | 6 | 3 |
| Stock | 5 | 6 | |
| Cash at bank and in hand | 664 | 510 | |
| Total Current Assets | 675 | 519 | |
| Creditors: Amounts falling due | |||
| within one year | 8.1 | (737) | (140) |
| Net Current Assets | (62) | 379 | |
| Total Assets less Current Liabilities | 1,229 | 1,520 | |
| Total Net Assets | 1,229 | 1,520 | |
| Funds of the Charity | |||
| Income Funds: | |||
| Restricted * | 0 | 92 | |
| Unrestricted | 9.0 | 1,229 | 1,428 |
| Total Funds | 1,229 | 1,520 |
- The £92k restricted fund was expended on a Cardiovascular Ultrasound equipment for Cath Lab in 23/24.
The Financial statements on pages 17 to 27 were approved by the Trustee and authorised for issue on and are signed on their behalf by:
Signed:
Date: 09/07/2024
Page 21
Charitable Trust Accounts - Liverpool Heart & Chest Hospital Charity - 2023/24
Statement of Cash Flows for the year ended 31 March 2024
| Cash flows from operating activites: Net cash provided by (used in) operating activities Cash flows from investing activities: Dividends and interest from investments Extra Investment Net cash provided by (used in) investing activities Change in cash and cash equivalents in the reporting period Cash and cash equivalents at the beginning of the reporting period Cash and cash equivalents at the end of the reporting period Reconciliation of net income/(expenditure) to net cash flow from operating activities: Net income/(expenditure) for the reporting period (as per the statement of financial activities) Adjusted for: (Gains)/losses on investments Dividends and interest from investments (Increase)/decrease in stock (Increase)/decrease in debtors Increase/(decrease) in creditors Net cash provided by (used in) operating activities Analysis of cash and cash equivalents: Cash at bank and in hand Total cash and cash equivalents |
2023-24 Total Funds £000 152 2 0 2 154 510 664 2023-24 £000 (291) (150) (2) 1 (3) 597 152 2023-24 £000 664 664 |
2022-23 Total Funds £000 |
|---|---|---|
| (803) | ||
| 2 0 |
||
| 2 | ||
| (801) 1,311 |
||
| 510 | ||
| 2022-23 £000 (346) 23 (2) 0 0 (479) |
||
| (803) | ||
| 2022-23 £000 510 |
||
| 510 |
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Charitable Trust Accounts - Liverpool Heart & Chest Hospital Charity - 2023/24
Notes to the Account
Accounting Policies 1
1.1 Accounting Convention
The financial statements have been prepared on the basis of historic cost convention, as modified for the revaluation of certain investments. The financial statements have also been prepared in accordance with Accounting and Reporting by Charities Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard (FRS 102) (effective 1 January 2019) and applicable UK accounting standards and the Charities Act 2011.
The financial statements have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of theStatement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.
1.2 Going Concern
At the time of approving te financial statements, the Trustees have a reasonable expectation that the Charity has adequate resourses to continue in operational existence for the foreseeable future. Thus the Trustees continue to adopt the going concern basis of accounting in prepering the financial statements.
1.3 Funds Structure
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by the donor. Where the restriction requires the gift to be invested to produce income but the Trustee has the power to spend the capital, it is classed as expendable endowment. Liverpool Heart & Chest Hospital Charity does not have any expendable endowments.
Unrestricted income funds comprise those funds which the Trustee is free to use for any purpose in furtherance of the charitable objects. Unrestricted funds include designated funds, where the donor has made known their non binding wishes or where the Trustee, at their discretion, have created a fund for a specific purpose.
1.4 Income Recognition
All incoming resources are included in full in the Statement of Financial Activities as soon as the following three factors can be met:
-
i) entitlement - arises when control over the rights or other access to the economic benefit has passed to the Charity;
-
ii) probable- when it is morelikely than not that theeconomic benefits associated with the transaction or gift will flow to the Charity; and
-
iii) measurement - when the monetary value or amount of the income can be measured reliably and the costs incurred for the transaction and the costs to complete the transaction can be measured reliably.
1.5 Income from Donations and Legacies
Legacies are accounted for as incoming resources either upon receipt or where the receipt of the legacy is normally probable. This will be when:
-
i) there has been a grant of probate;
-
ii) the executors have established that thereare sufficient assets in the estate, after settling any liabilities, to pay the legacy; and
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iii) any conditions attached to thelegacy areeither within thecontrol of thecharity or have been met.
There are no material legacies which have been notified but not recognised as incoming resources in the Statement of Financial Activities.
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Charitable Trust Accounts - Liverpool Heart & Chest Hospital Charity - 2023/24
1.6 Income from Donations and Legacies (cont'd)
a) Donations
i)
All funds are unrestricted but may be designated. These include donations where particular partsof Liverpool Heart and Chest Hospital or itsactivitieswerenominated by the donor at the time that the donation was made. Whilst nomination is not binding on the Trustee, the designated funds reflect these nominations. The Charity does not have any restricted funds.
ii)
Where a preference is not expressed by the donor then the donation is applied to Liverpool Heart and Chest Appeal which has four key elements to our fundraising aims;
-
To raise funds for key pieces of medical equipment
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To develop the Enhancing the Healing Environment programme
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To support patient centred research
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To continually invest in our staff to improve their clinical techniques so that we can
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provide our patients with an unrivalled patient experience.
iii) Where possible the Trust reclaims tax on donations through the Gift Aid scheme.
1.7 Income from Charitable activities
a) Robert Owen House Accommodation Income
-
i) Robert Owen House provides inexpensive overnight accommodation for relatives and friends of patients. Income received is applied to the upkeep and day to day running costs of the house.
-
ii) Robert Owen House accommodation income is credited to incoming resources from Charitable Activities within the Statement of Financial Activities.
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iii) Robert Owen House Income is credited net of VAT based on the date of occupancy.
-
iv) The Charity has treated income from Robert Owen House as Primary Purpose Trading and as such the profits are exempt from tax.
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Charitable Trust Accounts - Liverpool Heart & Chest Hospital Charity - 2023/24
1.8 Financial instruments
The Charity has elected to apply the provisions of Section 11 "Basic Financial Instruments" and Section 12 'Other Financial Instruments issues' of FRS 102 to all of its financial instruments. Financial instruments are recognised in the Charity's balance sheet when the Charity becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. Basic financial assets Basic financial assets basic minancial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently cared at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised. Basic financial liabilities
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised
Debt instruments are subsequently carried at amortised cost, using effective interest rate method. Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method. Derecognition of financial liabilities Financial liabilities are derecognised when the Charity's contractual obligations expire or are discharged or cancelled.
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Charitable Trust Accounts - Liverpool Heart & Chest Hospital Charity - 2023/24
1.9 Expenditure
The funds held on Trust accounts are prepared in accordance with the accruals concept. All expenditure is recognised when all of the following criteria are met:
i) obligation - a present legal or constructive obligation exists at the reporting date as a result of a past event;
ii) probable - it is more likely than not that a transfer of economic benefits, often cash, will be required in settlement; and
iii) measurement - the amount of the obligation can be measured or estimated reliably.
Grants are mainly made to Liverpool Heart and Chest Hospital NHS Foundation Trust in furtherance of the charitable objects of the funds. A liability for such grants is recognised when approval had been given by the Trustee. The Foundation Trust has full knowledge of the plans of theTrustee, thereforeagrant approval is taken to constitutea firm intention of payment which has been communicated to the Foundation Trust, and so a liability is recognised.
Expenditure on raising funds comprises the costs associated with attracting voluntary income. Expenditure on Charitable activities comprises those costs incurred by the Charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and any costs of an indirect nature necessary to support them.
Governance costs include only those costs associated with meeting the constitutional and statutory requirements of the charity and include audit fees and costs linked to the strategic management of the charity.
1.10 Irrecoverable VAT
Irrecoverable VAT is charged against the category of resources expended for which it is incurred.
1.11 Governance Costs
Establishment costs and Audit fees are apportioned to resources expended based on the value of transactions within each cost category at the end of the year.
1.12 The Costs of Raising Funds
These costs are salaries and other expenses associated with the Liverpool Heart and Chest Charity Fundraising Team and day to day expenses incurred in running Robert Owen House.
1.13 Fixed Asset Investments
Fixed asset investments are initially measured at transaction price ecluding transaction costs, and are subsequently measured at fair value at each reporting date. Transaction costs are expensed as incurred. Changes in fair value are recognised in other recognised gains and losses except to the extent that a gain reverses a loss previously recognised in net income expenditure, or a loss exceeds the accumulated gains recognised in equity; such gains and loss are recognised in net income/(expenditure) for the year.
1.14 Change in the Basis of Accounting
There has been no change in the basis of accounting this financial year.
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Charitable Trust Accounts - Liverpool Heart & Chest Hospital Charity - 2023/24
2.0 Related Party Transactions
Under the guidance provided by the Financial Reporting Standard 8, Liverpool Heart & Chest Hospital NHS Foundation Trust is a related party as it is the Corporate Trustee of the charity. During the year the charity has had a number of material transactions with Liverpool Heart & Chest Hospital NHS Foundation Trust (e.g. grant giving). Details are included in note 12.
TheFoundation Trust isthesoleTrusteeof theLiverpool Heart and Chest Charity and as such is considered to be a related party. During the year ended 31 March 2024, the Charity incurred £913k in expenditure and received £0k of income with the NHS Foundation Trust. Amounts owed by theFoundation Trust at 31 March 2024 were£0k and amounts owed to theFoundation Trust were £737k.
The Charitable Trust has made revenue payments to Liverpool Heart & Chest Hospital NHS Foundation Trust whereagentsof theCorporateTrustee(whosenamesarelisted below) arealso members of the Trust Board.
Bob Burgoyne - Chair of Charitable Funds Committee Dr Liz Bishop - Chief Executive James Thomson - Chief Finance Officer Nick Brooks - Non Executive Director Julian Farmer - Non Executive Director
The Trustees did not receive any remuneration for work performed in relation to the Charity (2022-23: £nil).
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Charitable Trust Accounts - Liverpool Heart & Chest Hospital Charity - 2023/24 Grants made 3.1 to institutions
| erpool Heart&Chest Hospital Charity- 2023/24 | ||
|---|---|---|
| Name of recipient and number of grants Total resources expended Less cost of generating funds Less admin/audit and bank charges Liverpool Heart & Chest Hospital NHS FT Trust |
Aggregate amount paid 2024 £000 (1,170) 217 41 (912) |
Aggregate amount paid 2023 £000 (1,016) 185 37 |
| (794) |
Analysis of 4.1 Support costs are reapportioned across expenditure. The apportionment is based on the value of transactions within each of the Support expenditure categories reported. Costs
The total value of support costs incurred in the reporting period is £36k (22/23 £33k) and comprises £1k (22/23 £1k) Establishment costs, £2k (22/23 £2k) independent examiners fee, £1k (22/23 £1k) Insurane costs and £32k (22/23 £31k) Staffing
Expenditure on 4.2 Raising Funds
| Total costs 2024 £000 Fund raising costs (224) (224) Included within the cost of raising funds are the following staff costs: Net Cost National Insurance Employer £000 £000 Fundraising Staff 146 15 |
Total costs 2024 £000 Fund raising costs (224) (224) Included within the cost of raising funds are the following staff costs: Net Cost National Insurance Employer £000 £000 Fundraising Staff 146 15 |
Total funds raised 2024 £000 730 730 Pension Employer £000 |
Total costs 2023 £000 (191) (191) Gross Cost 2024 £000 |
Total funds raised 2023 £000 692 |
|---|---|---|---|---|
| 692 | ||||
| Gross Cost 2023 £000 |
||||
| 146 15 |
7 | 168 | 100 |
The average number of staff employed during the year was 4 (2023/24: 2).
Robert Owen House Supplies has been reclassified as a charitable activities expenditure.
Charitable activities 4.3
| Staff Welfare Contribution to Liverpool Heart & Chest research Purchase of new equipment Patient welfare Education, training and research expenses New building and refurbishment Robot Running Costs Symposium Expenditure Robert Owen House Repairs Robert Owen House Supplies |
Total 2024 £000 (244) (21) (459) (50) (19) 0 (52) (11) (7) (79) (942) |
Total 2023 £000 (200) (41) (288) (11) (83) (76) (40) 0 (17) (65) |
|---|---|---|
| (821) |
Other expenditure 4.4
| Miscellaneous expenditure | Total 2024 Funds £000 (4) (4) |
Total 2023 Funds £000 (4) |
|---|---|---|
| (4) |
Note: Miscellaneous expenditure mainly consists of bank charges.
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Charitable Trust Accounts - Liverpool Heart & Chest Hospital Charity - 2023/24 Donations and legacies 4.5
| Donations ROH Donations Legacies Just Giving/Events Donations Research |
Total Total 2024 2023 £000 £000 (417) (271) (30) (52) (85) (197) (93) (64) (20) (20) |
|---|---|
| (645) (604) |
Other trading activities 4.6
| LHCH Merchandise | Total Total 2024 2023 £000 £000 (12) (13) |
|---|---|
| (12) (13) |
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Charitable Trust Accounts - Liverpool Heart & Chest Hospital Charity - 2023/24
| Net movement 5 in Funds Analysis of 6 Fixed Asset 6.1 Investments 6.2 Analysis of 6.3 gross income from investments 6.4 |
Opening Balance Closing Balance Net movement in funds for the year Net movement in funds available for future activities |
Total 2024 Funds £000 1,520 1,229 (291) (291) |
Total 2023 Funds £000 1,866 1,520 (346) (346) |
|
|---|---|---|---|---|
| Fixed Asset Investments: Market value at 1st April Additional Investment Net gain/(loss) on revaluation Market value at 31 March Historic cost at 31 March |
2024 £000 1,142 0 149 1,291 700 |
2023 £000 1,165 0 (23) 1,142 700 |
||
| Market value at 31 March : Investments in a Common Deposit Fund / Common Investment Fund |
Held in UK £000 1,291 1,291 |
2024 Total £000 1,291 1,291 |
2023 Total £000 1,142 1,142 |
|
| Total gross income Investments in a Common Deposit Fund / Common Investment Fund |
Held in UK £000 149 |
2023-24 Total £000 149 |
2022-23 Total £000 (23) (23) |
|
| 149 | 149 | |||
| Income from Charitable activities Income from Robert Owen House accommodation/telephone charges and fundraising sales |
2023-24 Total £000 70 |
2022-23 Total £000 74 74 |
||
| 70 |
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Charitable Trust Accounts - Liverpool Heart & Chest Hospital Charity - 2023/24
6.5 Other income
| Interest on short term deposit | 2024 Total £000 2 2 |
2023 Total £000 2 |
|---|---|---|
| 2 |
The Corporate Trustees adopted the Treasury Management Policy of Liverpool Heart & Chest Hospital NHS FT in respect of investments. The majority of cash balances are placed with Natwest (Government Banking Service), which attracts an interest rate of 5.14%.
Analysis of 7 Debtors
Debtors (including trade debtors and loans receivable) are measured on initial recognition at settlement amount after any trade discounts or amount advanced by the charity. Subsequently, they are measured at the cash or other consideration expected to be received.
| 7.1 Donations and legacies Prepayments Total debtors falling due within one year Total debtors |
2024 £000 3 3 6 6 |
2023 £000 0 3 |
|---|---|---|
| 3 | ||
| 3 |
| Analysis of | 8 | The charity has creditors which are measured at | settlement amounts less | any trade |
|---|---|---|---|---|
| Creditors | ||||
| 2024 | 2023 | |||
| 8.1 | Amounts falling due within one year: | £000 | £000 | |
| Trade creditors | 0 | 0 | ||
| Accruals | (375) | (107) | ||
| VAT | (2) | (2) | ||
| Balance owed to Liverpool Heart & Chest | (360) | (31) | ||
| Total creditors falling due within one year | (737) | (140) | ||
| Total creditors | (737) | (140) |
The charity has creditors which are measured at settlement amounts less any trade discounts.
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Charitable Trust Accounts - Liverpool Heart & Chest Hospital Charity - 2023/24
| Details of | 9.0 | Name of fund | Balance | Incoming | Resources | Gains | Balance |
|---|---|---|---|---|---|---|---|
| charitable funds | b/fwd | resources | expended | and | c/fwd | ||
| 01 April 2023 | (losses) | 31 March 2024 | |||||
| £000 | £000 | £000 | £000 | £000 | |||
| Material designated funds | |||||||
| A Robert Owen House |
140 | 101 | -92 | 61 | 210 | ||
| B LHCH Charity |
709 | 572 | -871 | -18 | 392 | ||
| C Cystic Fibrosis |
66 | 1 | -3 | 21 | 85 | ||
| D Lung Cancer |
79 | 0 | -4 | 27 | 102 | ||
| E Cherry Ward |
34 | 7 | -4 | 16 | 53 | ||
| Total material designated | 1,028 | 681 | -974 | 107 | 842 | ||
| Misc. designated | 492 | 48 | -196 | 43 | 387 | ||
| Total charitable funds | 1,520 | 729 | -1,170 | 150 | 1,229 | ||
| Material funds are deemed at | being in excess of £50,000 | ||||||
| Robert Owen House provides inexpensive relatives accommodation. | |||||||
| The LHCH Charity is for any | charitable purpose or purposes relating to services provided by LHCH NHS FT. | ||||||
| The Cystic Fibrosis fund facilitates education and research into adult Cystic Fibrosis and provides support | for patients | ||||||
| with this condition. | |||||||
| The Lung Cancer funds facilitates education and research into adult lung cancer and provides support for patients | |||||||
| with this condition. | |||||||
| The Cherry Ward funds provides funds for patients with Cystoc Fibrosis and provides support for patients. | |||||||
| In 22/23, the Charity received £92k legacy which | is restricted to equipment puchases. | This legacy was utilised in 23/24. |
Contingencies 10 There are no contingent losses or gains included in the accounts
There are no commitments, contingent liabilities or provisions included in 2023-24
Commitments, 11 There are no commitments, contingent liabilities or provisions included in 2023-24 Liabilities and Provisions 11.1 There are no commitments or provisions included in the accounts Trustee and 12 Connected Persons 12.1 The Charitable Trust delivers the charitable objectives by making grants to the Transactions Liverpool Heart & Chest Hospital NHS Foundation Trust. Grants made amounted to £913k in 2023/2024 (2022/23 £794k).
At 31st March 2024, £737k was owed to the Liverpool Heart & Chest Hospital NHS Foundation Trust (2022/23 £140k).
12.2 There was no Trustee indemnity insurance during the year.
Loans or 13 Guarantees Secured against assets of the charity
There were no loans or guarantees secured against assets of the Charity.
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