## **General Charitable Fund ANNUAL REPORT AND FINANCIAL STATEMENTS**
**Year Ended: 31 March 2021**
Sherwood Forest Hospitals General Charitable Fund
Annual Report and Accounts for the Year Ended 31 March 2021
|**Contents**||
|---|---|
||**Page**|
|Reference and Administrative Information|2-3|
|Trustee’s Annual Report|4 -17|
|Statement of Trustee Responsibilities|18|
|Independent Auditor’s Report to the Members of||
|Sherwood Forest Hospitals General Charitable Fund|19 - 22|
|Statement of Financial Activities|23|
|Balance Sheet|25|
|Cash Flow|27|
|Accounting Policies and Notes|28 - 40|
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Sherwood Forest Hospitals General Charitable Fund
Annual Report and Accounts for the Year Ended 31 March 2021
## **Reference and Administrative Information**
## **Trustee Arrangements**
Sherwood Forest Hospitals General Charitable Fund is registered with the Charity Commission, following a ‘Deed of Amendment’ dated 9 July 2002 with Sherwood Forest Hospitals NHS Foundation Trust as the Corporate Trustee.
The members of the NHS Foundation Trust Board of Directors who served during the financial year were as follows:
Mr J. MacDonald Chair Mr R Mitchell Chief Executive Officer Mr P Robinson Chief Financial Officer Dr D Selwyn Executive Medical Director Ms J Hogg Chief Nurse Ms S Higginbotham Director of Corporate Affairs / Company Secretary Mr S Barton Chief Operating Officer Ms C Teeney Director of People Ms E Challans Director of Culture and Improvement Mr R Smith Head of Communications Ms Lorna Branton Director of Communications[1 ] Mr T Reddish Senior Independent Non-Executive Ms C Ward Independent Non-Executive Mr G Ward Independent Non-Executive Mr N Gossage Independent Non-Executive Mrs B Brady Independent Non-Executive Ms M Gill Independent Non-Executive
[1] Commenced 16 November 2020
## **Charitable Fund Committee Membership**
Mr T Reddish Independent Non-Executive Advisor and Chair Mr G Ward Independent Non-Executive Advisor Mrs B Brady Independent Non-Executive Advisor Mr P Robinson Chief Financial Officer Ms S Higginbotham Director of Corporate Affairs / Company Secretary Mr M Powell Head of Financial Services Mr P Harper Head of Strategic Planning Mr R Smith Head of Communications Ms K Beadling Barron Head of Communications Ms T Brassington Community Involvement Manager Mr R. Mills Deputy Chief Financial Officer Ms R Briggs Divisional General Manager Ms H Hollis Governor (Observer) Mr A Mackie Governor (Observer) Ms J Thornley Secretary to Committee
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Sherwood Forest Hospitals General Charitable Fund
Annual Report and Accounts for the Year Ended 31 March 2021
Other non-voting members are in attendance as required.
## **Registered Office**
The registered office of the Trustee is King’s Mill Hospital, Mansfield Road, Sutton in Ashfield, Nottinghamshire, NG17 4JL.
## **Registration Number**
The Charity is registered with the Charity Commission – Registered Number 1054086.
## **Principal Professional Advisors**
**Internal Auditors** 360 Assurance Riverside House Bridge Park Road Thurmaston Leicester LE4 8BL
**Bankers** Nottingham Building Society 1 Stockwell Gate Mansfield Nottinghamshire Government Banking Services Natwest Bank 2[nd] Floor 280 Bishopsgate London EC2M 4RB
**External Auditors** Godfrey Wilson Limited 5[th] Floor Mariner House 62 Prince Street Bristol BS1 4QD **Investment Advisors** Investec Wealth and Investment 2 Gresham Street London EC2V 7QN **Solicitors** Kings Orchard 1 Queen Street Bristol BS2 0HQ
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Sherwood Forest Hospitals General Charitable Fund
Annual Report and Accounts for the Year Ended 31 March 2021
## **Trustee’s Annual Report**
## **Foreword**
Sherwood Forest Hospitals Charitable Fund (SFH) was formally created on 9 July 2002, replacing the King’s Mill General Charitable Fund which had been in existence since 13 March 1996 following the transfer of funds from North Nottingham Health Authority.
The Sherwood Forest Hospitals NHS Foundation Trust is constituted as the sole corporate trustee, and all unrestricted funds are available to be applied for any charitable purpose or purposes relating to hospital and health services.
These accounts have been prepared in line with Financial Reporting Standard 102 (FRS 102).
The Charity’s annual report and accounts for the year ending 31 March 2021 have been prepared by the corporate trustee in accordance with the Charities Act 2011 and the Charities (Accounts and Reports) Regulations 2005 (Statement of Recommended Practice (SORP) 2019). The Charity’s report and accounts include all the separately established funds for which the Trust is the sole beneficiary.
The charitable funds are registered (Number 1054086) in accordance with the Charities Act 2011.
## **Administrative Details**
The main charity is an umbrella charity under which 3 funds are individually registered. There were a total of 45 (2019/20: 40) active individual funds maintained within the accounting records as at 31 March 2021 and the notes to the accounts distinguish the types of fund and disclose separately all material funds.
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 2006 and these funds are held on trust by the corporate body.
## **Trustee**
The Trust is the corporate trustee of the charitable funds governed by the law applicable to Trusts, principally the Trustee Act 2000 and also the law applicable to Charities, which is governed by the Charities Act 2011.
The Board of Directors devolves responsibility for the on-going management of funds to the Charitable Funds Committee to administer the funds on behalf of the corporate trustee. Details of the trustee and committee members are disclosed on pages 2 and 3.
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Annual Report and Accounts for the Year Ended 31 March 2021
## **Key management personnel remuneration**
The trustees have concluded that the board of trustees and the charitable fund committee comprise the key management personnel of the charity as they are in charge of:
- Directing and controlling the charity; and
- Running and operating the charity on a day to day basis.
All trustees give of their time freely and no trustee remuneration or expenses were paid in the year.
Trustees are required to disclose all relevant interests and register them with the trust fund director and withdraw from decisions where a conflict of interest arises. All related party transactions are disclosed in note 1.15 to the accounts.
## **Principal Charitable Fund Advisor to the Board of Directors**
Under a scheme of delegated authority approved by the corporate trustee (Board of Directors), the Chief Financial Officer of the NHS Foundation Trust has responsibility for the management of the charitable fund, and the Head of Financial Services is the principal officer overseeing the day-to-day financial management and accounting for the charitable funds during the year.
## **Professional Advisors**
The principal professional advisors to the corporate trustee are detailed on page 3.
## **Structure, Governance and Management**
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 either part of this unrestricted fund or registered as separate restricted funds under the main charity. Subsequent donations and gifts received by the charity that are attributable to the original funds are added to those fund balances within the existing charity. Where funds have been received which have specific restrictions set by the donor, new restricted funds have been established.
The charitable funds available for spending are allocated to specialties. Each allocation is managed by use of a designated fund within the general unrestricted fund. For example there are charitable funds for areas such as Gynaecology, Opthamology, and Neonatal. In addition there are general funds which mirror the Directorate management structure and funds associated with specific fund raising appeals which are detailed in note 19.
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Annual Report and Accounts for the Year Ended 31 March 2021
Members of the Trust Board of Directors and the Charitable Fund Committee are not individual trustees under Charity Law but act as agents on behalf of the corporate trustee. Since becoming a Foundation Trust on 1 February 2007, the Chair, NonExecutive Directors, Chief Executive and Executive Directors are appointed to the Board of Directors in accordance with section 9 of the Trust's constitution.
The Trust Council of Governors is responsible for appointing the Chair and the Chair and Governors are responsible for appointing the Non-Executive Directors. The Chair and Non-Executive Directors are responsible for appointing the Chief Executive, and the Chair, Chief Executive, and Non-Executive Directors are responsible for appointing the Executive Directors.
The Charitable Fund Committee manages the charitable funds under delegated authority.
To assist the Trustee in fulfilling its role a number of documents are provided including; two years’ accounts and annual reports, the latest external audit opinion on the annual report and accounts, minutes from previous meetings, the committee terms of reference and fund raising strategy. In addition a number of Charity Commission publications are provided along with copies of the Standing Orders, Standing Financial Instructions and the Scheme of Delegation.
Acting for the corporate trustee, the Charitable Fund Committee is responsible for the overall management of the charitable fund. The committee is required to:
- Ensure the stewardship and effective management of funds which have been donated, bequeathed and given to the Sherwood Forest Hospital’s General Charitable Fund for charitable purposes;
- Control, manage and monitor the use of the fund’s resources;
- Ensure a fund-raising strategy is prepared and monitored which complies with Charity Commission guidance and legislation;
- Provide support, guidance and encouragement for all its income raising activities whilst managing and monitoring the receipt of all income;
- Ensure that ‘best practice’ is followed in the conduct of all its affairs fulfilling all of its legal responsibilities;
- Ensure that the investment policy approved by the NHS Foundation Trust Board of Directors, as corporate trustee, is adhered to and that performance is continually reviewed whilst being aware of ethical considerations; and
- Keep the Trust Board of Directors fully informed on the activity, performance and risks of the charity.
On a quarterly basis (and as required) information is routinely provided to the Charitable Fund Committee on fund, cash and investment balances, expenditure commitments and fundraising, as well as legacy and income updates.
In addition, information is provided regarding changes to legislation, along with updates from our external investment advisors.
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Sherwood Forest Hospitals General Charitable Fund
Annual Report and Accounts for the Year Ended 31 March 2021
The accounting records and the day-to-day administration of the funds are dealt with by the Finance Department located at the principal office: King’s Mill Hospital, Mansfield Road, Sutton in Ashfield, Nottinghamshire, NG17 4JL.
In year the committee also reviewed and approved the:
- Terms of Reference;
- Annual Work Plan;
- Investment and Reserves Policy;
- Charity Risk register; and
- External Audit report.
The committee also
- Completed a self-assessment Committee Health Check; and
- Completed a Governance self-assessment.
The aim of the Committee Health Check and self-assessment is to help committees review their governance arrangements and check that they have appropriate systems in place.
## **Risk Management**
The Trustee has considered the major risks to which the charity is exposed and has reviewed those risks and established systems and procedures to manage those risks. The Trustee considers the variability of investment returns to constitute the charity’s only significant financial risk, particularly at present with the on-going fluctuations in the stock market due to Covid 19. The main operational concern is to ensure that both spending and firm financial commitments remain in line with income. This is continually reviewed to ensure that forecast income and commitments, including investment returns, remain in line with planning assumptions which are routinely updated to reflect the latest actual and forecasts.
The Charity’s accounts and financial procedures are subject to regular internal and external audit review, reported to the Charitable Fund Committee, along with compliance in implementing any associated recommendations.
## _**Partnership working and networks**_
The charity continues to participate in the ‘Charitable Funds Special Interest Group’, run by the Healthcare Finance Management Association, in liaison with the Charity Commission, to help ensure that the Trustee is kept informed and fully updated on all current and developing issues.
Sherwood Forest Hospitals NHS Foundation Trust is the main beneficiary of the charity and is a related party by virtue of being the corporate trustee of the charity. By working in partnership with the Trust, the charitable funds are used to best effect and so when deciding upon the most beneficial way to use charitable funds the corporate trustee has regard to the main activities, objectives, strategies and plans
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Annual Report and Accounts for the Year Ended 31 March 2021
of the Trust. 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 donors to benefit patient care and advance the good health and welfare of patients, carers and staff.
The Trust remains indebted to the work of our hospital volunteers who support Sherwood Forest Hospitals Foundation Trust and raise substantial funds through refreshments bars, trolley services and their fundraising activities. The League of Friends of Newark Hospital and the League of Hospital Friends (Mansfield & Sutton) continue to raise funds for our hospitals through the work of their volunteers assisting with a wide range of fundraising activities which include coffee mornings, hospital refreshment bars, stalls and raffles.
## _**Objectives and Strategy**_
The charity’s main fund has NHS-wide objectives as follows:
**“The trustee shall hold the trust fund upon trust to apply the income, and at its discretion, so far as may be permissible, the capital, for any charitable purpose or purposes relating to the National Health Service”.**
**“Specifically the principal objective of the charity is to provide additional support to the patients of the Sherwood Forest Hospitals NHS Foundation Trust. This is achieved by the prioritisation of needs and the granting of expenditure on items such as refurbishment, medical equipment and staff education and welfare”.**
Grants are made in accordance with charity law, our constitution and the wishes and directions of donors. In making grants, we endeavour to reflect the wishes of patients and staff by directing funds towards areas they tell us are most in need. During the year 2020/21, grants totalling £0.22m (2019/20 £0.77m) were made.
Our key aim is to serve the NHS patients of Sherwood Forest Hospitals NHS Foundation Trust ensuring all grants made are in line with the Charity Commission guidance on Public Benefit. By working with the NHS we assist people from every walk of life, irrespective of race, creed, ethnicity or personal or family financial circumstances. We put this aim into practice by helping the children, their families and carers, and visitors to the hospital by:
- Enhancing the care our partner hospital can offer through new equipment and building improvements to deliver better facilities;
- Investment in people and in creating a caring environment for the patients receiving care, their families and visitors; and
- Provide direct support to patients by way of information, networking support, better facilities and occasional grants.
We do this through a range of programs funded by your generous donations. Highlights from the main programs undertaken in the year are detailed below to give you a wider understanding of the difference we can make together to young lives today and in the future.
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Annual Report and Accounts for the Year Ended 31 March 2021
Patients’ Expenditure: Purchase of small items of equipment, provision of services and the provision of facilities not normally provided by, or in addition, to the normal NHS provision. Staff Expenditure: Motivation of staff, by improving staff facilities and providing services that improve staff wellbeing. Education of staff by providing education over and above what would normally be provided by the NHS. Capital Equipment: Equipment in addition to that normally provided by the NHS.
All annual expenditure is based on the above objectives, with the primary emphasis being placed on patients’ expenditure to improve their quality of care and patient experience.
Making the Trustee vision happen involves all our partners, staff, patients, carers and the community and we invite you to join us to make this a reality. If you want to know more about how to become involved or to take part in the fundraising or to make a donation please contact the Community Involvement Department on 01623 672371.
## **Just Giving Website / Just Giving Text**
Advice on ‘Just Giving’ regarding fundraising and the ability to donate should be obtained from the Community Involvement Department. (http://www.justgiving.com/sherwoodforest)
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Sherwood Forest Hospitals General Charitable Fund
Annual Report and Accounts for the Year Ended 31 March 2021
## **Annual Review: Our Activities**
During the year, the funds continued to support a wide range of charitable and health related activities benefiting both patients and staff. In general they are used to purchase additional goods and services that the NHS is unable to provide.
Charitable funds receive many donations and these are used for charitable activities that will benefit staff and patients. The charitable funds also enable staff to attend courses, not funded by the NHS, which will update them on the new ideas and modern techniques in their specialty.
The general purposes fund receives donations and legacies that can be used for any charitable purpose relating to the NHS.
Income of £451k was received during 2020/21 (£681k in 2019/20) of which £42k (£132k in 2019/20) related to legacies. All legacies are reported to the Charitable Fund Committee, which identify the source and proposed application of the bequest, along with any updates on notified legacies which have not yet been received.
During the first lockdown, members of the public and businesses donated gifts in kind for the health and wellbeing of staff. Where these donations were immediately distributed to and consumed by staff and patients, they have not been included in the accounts although disclosure has been made in both the annual report and the accounts.
The generosity of all those who made a donation is greatly appreciated. An analysis of income follows:
## Sources of Income
||**2020/21**
**£**|**2019/20**
**£**|
|---|---|---|
|Investment return
Donations
Legacies
Bank Interest|37,425
371,214
42,293
-|46,372
499,235
132,525
3,224|
|Total|450,932|681,356|
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Annual Report and Accounts for the Year Ended 31 March 2021
## Analysis of Expenditure
||**2020/21**
**£**|**2019/20**
**£**|
|---|---|---|
|Staff Education and Welfare
Purchase of New Equipment
New Building and Refurbishment
Patient Education and Welfare
RaisingFunds|17,795
77,017
-30,846
194,862
25,839|14,211
585,935
0
222,004
20,069|
|Total|284,667|842,220|
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Sherwood Forest Hospitals General Charitable Fund
Annual Report and Accounts for the Year Ended 31 March 2021
## **Grant Making Policy**
Grants are made from the charity’s unrestricted and restricted income funds. These funds comprise four elements:
- **The General Fund** , which is constituted of funds received by the charity with no particular preference expressed by donors. Applications to this fund can be from any staff member of the Trust. Based on their knowledge of the Trust the fund managers and Chief Financial Officer agree expenditure based on the over-riding principle of providing value for money. Grants are targeted on projects in areas of the Trust which do not have available designated funds to pay for them.
- **Designated (Earmarked) Funds,** which contain donations where the donor nominated a particular part of the hospital or activity at the time their donation was made. Whilst their nomination is non-binding on the Trustee, the designated funds reflect these nominations and are overseen by fund managers who can make recommendations on how to spend the money within their designated area.
- **Endowment Funds - Benefit of the Children’s Fund.** This fund comprises solely the income derived from the permanent capital endowment and all expenditure relates solely to the Children’s Unit at King’s Mill Hospital. This fund is overseen by a fund manager who can make recommendations on how to spend the money. These funds can be spent at any time.
- **Restricted Income Funds,** which comprise donations relating to specific fundraising appeals and legacies where a restriction on use has been placed on the funds.
## **Reserves Policy**
Individual budget holders are requested to submit an annual forecast to management setting out how funds are to be spent. Management regularly monitor actual expenditure against these plans and take action in order to ensure that funds are spent in a timely manner and in accordance with donors’ wishes.
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Annual Report and Accounts for the Year Ended 31 March 2021
The charity’s reserves policy takes account of both an expendable endowment fund, which is available to spend at the discretion of the Trustee, and unrestricted income funds including designated funds. By taking a broad definition, and by ensuring that fund managers administer their funds within the available allocation, the requirement for wholly unrestricted reserve balances is minimised. The aim of the Trustee is to maintain a working cash balance of £150k, which is the level considered necessary to meet day to day commitments and to cover any potential unforeseen situations, with any excess balance subject to regular review and reporting to the Charitable Funds Committee.
Where it becomes apparent that excessive balances are being held, income and expenditure trends are reviewed, and if appropriate excessive balances are placed on investment following advice from our investment advisors.
The year-end, fund balances of £1.27m equate to approximately twenty four months of expenditure based on an average year’s requests, which is considered reasonable based on current income levels.
At the year-end cash balances of £766k were held (£666k in 2019/20) primarily due to the fundraising relating to the Gamma Camera. Payment was made following installation in quarter 1 of 2021/22. Balances will continue to be monitored and reported in 2021/22 as appropriate.
The Trustee intends to maintain the total funds invested at its current level in the short term and use the income generated from these investments to further the charity’s objects, as this will mitigate significant fluctuations in the level of donations. The Trustee continues to review balances in order to ensure that they are utilised in an effective and timely manner.
## **NHS Charities Together**
In year the charity received 4 grants totalling £122.6k from NHS Charities for staff and patients welfare due to the impact of the Covid 19 pandemic.
## **A Review of our Finances, Achievements and Performance**
The net assets of the Charitable Funds as at 31 March 2021 were £1.27 million (2019: £0.94 million). Overall net assets increased by £325k (£283k decrease in 2019/20).
Excluding the unrealised gain, underlying balances increased by £166k (£161k decrease in 2019/20), reflecting the Trustee’s on-going commitment to utilising donations in a timely manner. This increase reflects the reduced expenditure in year due to the additional capital available as a consequence of Covid 19 and the reduced availability of training courses, which reduced in year spend.
The charity continues to rely on donations and legacies and investment income as the main sources of income.
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Sherwood Forest Hospitals General Charitable Fund
Annual Report and Accounts for the Year Ended 31 March 2021
Donations of £372k were received in 2020/21 (£500k in 2019/20) and the Trustee continues to be extremely grateful for all legacies received.
The total charitable expenditure on direct charitable activity was £258k (£821k in 2019/20 due to the recognition of the Gamma camera creditor/commitment). Sherwood Forest Hospitals NHS Foundation Trust is the main beneficiary for all expenditure incurred.
## _Purchase of new equipment and building and refurbishment_
The total spend on providing new equipment of £77k (£585k in 2019/20) represents a vital and valuable contribution to enhancing the provision of clinical care, and included tonometers and numerous smaller purchases which were for less than £10k individually. This is a significant reduction on normal expenditure trends and reflects the additional capital expenditure incurred by the Trust in year on equipment due to the impact of Covid 19.
## _Staff Education and Welfare_
The charity contributed £18k (£14k in 2019/20) towards the provision of staff education and training for staff undertaking further professional education and training.
The charity remains committed to funding continued professional education and training where insufficient resources exist within Trust revenue funding streams.
## _Patient education and welfare_
Although a significant amount of expenditure £195k (£222k in 2019/20) has been charged under this heading, of this £60k related to items of furniture and £23k for I.T equipment. The largest individual purchase related to the purchase of RITA software £16k (Reminiscence, Interactive, Therapeutic, Activities) to improve patient wellbeing.
## _Performance management_
The charity has no employees and so relies upon its partner the NHS Foundation Trust to review the appropriateness of requests for equipment, training and building
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Annual Report and Accounts for the Year Ended 31 March 2021
related work. For equipment purchases funded by the charity the applicant must advise what difference the proposal will make and what benefit it will provide, and it is the Trustee policy that recurring revenue costs will not be funded.
As in previous years all medical items were also approved by the Equipment Committee, to confirm need and appropriateness. All significant expenditure incurred is reported to the Charitable Funds Committee to review for appropriateness.
Expenditure requests require the further approval of the Chief Financial Officer or the Chief Executive, for all expenditure from general purpose funds and for all expenditure over £15k from restricted purpose funds, before expenditure can be incurred.
## **Investments**
The funds of the charity are invested solely with a view to obtaining a higher than average overall return on its investment.
At the end of the year investments valued at £1.14m were held compared to a historic purchase cost of £1.10m and a net gain of £159k was recognised in the accounts (£123k loss in 2019/20). The gain has reversed the loss of 2019/20 however, stock markets still remain volatile.
The corporate trustee continues to consider its exposure to the fluctuations in the value of its equity based investment, and received quarterly updates from its external fund advisors on current performance and forecast market trends.
The Trustee has taken a longer term approach to investments and it is expected that values will increase over time and regular discussions are held with the Trust’s investment advisors regarding the stock market and potential movements and risks.
The charity has an investment policy that is reviewed and approved by the Charitable Funds Committee on an annual basis. The policy requires that all monies apart from working capital and capital in perpetuity be invested to maximise the overall return consistent with the degree of risk acceptable to the corporate trustee.
In line with the ethos of promoting patient care, the corporate trustee attempts to ensure that all investments are ethically and environmentally sound and are not opposed to the “purpose” of the charity. The performance of the investments are continuously monitored and reported on a quarterly basis.
## **The Charities Act (Protection and Social Investment) Act 2016**
Details of our processes and controls relating to the above legislation are detailed as follows:
Our approach to fundraising is to ensure that any direct fundraising expenditure incurred will maximise a return on investment whilst maintaining excellent
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Annual Report and Accounts for the Year Ended 31 March 2021
relationships with supporters, reflecting best practice within the sector and protecting the vulnerable. We have not employed any fundraisers in year.
We are not a member of any Fundraising Regulations Standard Board; however, we maintain internal policies and procedures to ensure appropriate governance on any external fundraising undertaken in the Charity’s name.
Fundraising activities are monitored by the Community Involvement Team and Charitable Fund Committee made up of trustees, which reports to the Board of Trustees.
No complaints have been received or notified in the year. Any complaints notified or received would be managed by the community involvement manager and lessons learnt reported via the Charitable Fund committee.
The Charity does not employ direct fundraisers or external fundraising companies, it does however monitor itself in line with Sherwood Forest Hospitals NHS Foundation Trust policies, such as Information Governance, Safeguarding and Inclusivity and Diversity, in order to protect vulnerable people and others from unreasonable intrusion on a person's privacy, unreasonably persistent approaches or undue pressure to give, in the course of or in connection with fundraising for the charity **.**
## **Our relationship with the wider community**
The ability of SFH Charities to continue its vital support for Sherwood Forest Hospitals NHS Foundation Trust is dependent on its ability to maintain and increase donations from the general public. SFH Charities also continues to forge strong relationships with members of staff of the Trust without whose co-operation the ability to make an effective contribution would be much diminished.
## **Volunteers**
The trustees would like to pay tribute to:
- Our volunteers for their time, support, and commitment;
- The members of staff of SFH who give of their time out of hours in support of the work on the committees, in developing ideas for working with us to identify how we can help enhance care; and
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Annual Report and Accounts for the Year Ended 31 March 2021
- Our fundraisers who do so much to encourage others to enrich the lives of others through donations and fundraising activities.
## **Our Future Plans**
Mindful of the changing NHS, the future direction of the charity will be shaped by the reconfiguration of services and the need to redesign patient care to meet the needs of the future, in line with the Integrated Care system plan for more integrated working arrangements between organisations. Income and expenditure plans will be the subject of continual review to ensure that future needs are prioritised and utilised in line with the new service delivery strategy.
Funds and fund structure will continue to be reviewed and refined to ensure appropriate utilisation, whilst retaining appropriate specialty funds as required. This will make the funds more readily manageable and accessible.
The review of achievements, performance and finances should be seen in the context of the Trustee vision to assist the Trust to help its hospitals develop and provide world-class patient centred care.
Another key area remains our commitment to embed the fundraising and publications strategies, and the creation of more cohesive links and relationships with our fundraising partners.
## **Big Thank You**
On behalf of the staff and patients who have benefited from improved services due to donations and legacies, the corporate trustee would like to thank all donors and volunteers and corporate partners for their generous support over the past year. There is no doubt that patients’ experiences are greatly enhanced by items such as equipment purchased with charitable funds.
The Trustee looks forward to the coming year and the challenges and opportunities it may bring and hopes it will be as successful as this and previous years in continuing to enhance the welfare of both patients and staff.
If you need any advice on how to support our charitable funds, please contact the Community Involvement Department on 01623 672371.
Signed:
Richard Mills Chief Financial Officer on behalf of the Corporate Trustee 4 November 2021
**King’s Mill Hospital** Mansfield Road Sutton in Ashfield Nottinghamshire NG17 4JL
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Annual Report and Accounts for the Year Ended 31 March 2021
## **Statement of Trustee’s responsibilities in respect of the Trustees' annual report and accounts**
The trustees are responsible for preparing the trustees' report and the financial statements in accordance with 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).
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 the incoming resources and application of resources, including the net income or expenditure, of the charity for the year. In preparing those financial statements the trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and accounting estimates that are reasonable and prudent; state whether applicable accounting standards and statements of recommended practice 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 in operation.
The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and which 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 constitution. The trustees 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 trustees are responsible for the maintenance and integrity of the corporate 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.
Approved by the trustee and signed on its behalf by
Signed: Date: 4 November 2021 Claire Ward (Chair) Signed: Date: 4 November 2021 Richard Mills (Chief Financial Officer)
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## **Independent auditors' report**
## **To the trustees of Sherwood Forest Hospitals General Charitable Fund**
## **Opinion**
We have audited the financial statements of Sherwood Forest Hospitals General Charitable Fund (the 'charity') for the year ended 31 March 2021 which comprise the statement of financial activities, balance sheet, statement of cash flows, and the related notes to the financial statements, including a summary of significant accounting policies. 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).
In our opinion, the financial statements:
- give a true and fair view of the state of the charity's affairs as at 31 March 2021 and of its income and expenditure for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Charities Act 2011.
## **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 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 trustees’ 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 trustees with respect to going concern are described in the relevant sections of this report.
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Annual Report and Accounts for the Year Ended 31 March 2021
## **Other information**
The trustees are responsible for the other information. The other information comprises the information included in the annual report other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
## **Matters on which we are required to report by exception**
In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ report. We have nothing to report in respect of the following matters in relation to which the Charities Act 2011 requires us to report to you if, in our opinion:
- sufficient accounting records have not been kept;
- the financial statements are not in agreement with the accounting records and returns; or
- we have not obtained all the information and explanations necessary for the purposes of our audit.
## **Responsibilities of the trustees**
As explained more fully in the trustees’ responsibilities statement set out in the trustees’ report, the trustees are 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 they determine 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 trustees are 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 trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.
20
Sherwood Forest Hospitals General Charitable Fund
Annual Report and Accounts for the Year Ended 31 March 2021
## **Our responsibilities for the audit of the financial statements**
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
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 procedures we carried out and the extent to which they are capable of detecting irregularities, including fraud, are detailed below:
(1) We obtained an understanding of the legal and regulatory framework that the charity operates in, and assessed the risk of non-compliance with applicable laws and regulations. Throughout the audit, we remained alert to possible indications of non-compliance.
(2) We reviewed the charity’s policies and procedures in relation to:
- Identifying, evaluating and complying with laws and regulations, and whether they were aware of any instances of non-compliance;
- Detecting and responding to the risk of fraud, and whether they were aware of any actual, suspected or alleged fraud; and
- Designing and implementing internal controls to mitigate the risk of noncompliance with laws and regulations, including fraud.
(3) We inspected the minutes of trustee meetings.
(4) We enquired about any non-routine communication with regulators and reviewed any reports made to them.
(5) We reviewed the financial statement disclosures and assessed their compliance with applicable laws and regulations.
(6) We performed analytical procedures to identify any unusual or unexpected transactions or balances that may indicate a risk of material fraud or error.
(7) We assessed the risk of fraud through management override of controls and carried out procedures to address this risk. Our procedures included:
- Testing the appropriateness of journal entries;
- Assessing judgements and accounting estimates for potential bias;
- Reviewing related party transactions; and
- Testing transactions that are unusual or outside the normal course of business.
21
Sherwood Forest Hospitals General Charitable Fund
Annual Report and Accounts for the Year Ended 31 March 2021
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. Irregularities that arise due to fraud can be even harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
## **Use of our report**
This report is made solely to the charity's trustees, as a body, in accordance with section 144 of the Charities Act 2011 and the regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditorʼs 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 charityʼs trustees as a body, for our audit work, for this report, or for the opinions we have formed.
Date: 4 November 2021
Godfrey Wilson Limited Chartered accountants and statutory auditors 5th Floor Mariner House 62 Prince Street Bristol BS1 4QD
22
Sherwood Forest Hospitals General Charitable Fund
Annual Report and Accounts for the Year Ended 31 March 2021
## **Statement of Financial Activities for the year ended 31 March 2021**
|**Note**
**Income from:**
Donations
2
Legacies
2
Income from Investments
12
**Total income**
**Expenditure on:**
Raising Funds
_Charitable activities:_
4
Purchase of New Equipment
New Building and Refurbishment
Staff Education and Welfare
Patient Education and Welfare
**Total expenditure**
Net gains on investments
11
**Net income**
Fund transfers
**Net movement in funds**
_Reconciliation of funds_
Total funds brought forward
**Total funds carried forward**|Unrestricted
Funds
£000
187
42
37
**266**
(26)
(76)
32
14
(137)
**(193)**
159
232
38
**270**
778
**1,048**|Restricted
Endowment
**Total at 31**
Funds
Funds
**March 2021**
£000
£000
**£000**
185
-
372
-
-
42
-
-
37
**185**
**-**
**451**
-
-
(26)
-
(76)
(1)
-
31
(32)
-
(18)
(59)
-
(196)
**(92)**
**-**
**(285)**
-
-
159
93
-
325
(38)
-
-
**55**
**-**
**325**
137
28
943
**192**
**28**
**1,268**|Restricted
Endowment
**Total at 31**
Funds
Funds
**March 2021**
£000
£000
**£000**
185
-
372
-
-
42
-
-
37
**185**
**-**
**451**
-
-
(26)
-
(76)
(1)
-
31
(32)
-
(18)
(59)
-
(196)
**(92)**
**-**
**(285)**
-
-
159
93
-
325
(38)
-
-
**55**
**-**
**325**
137
28
943
**192**
**28**
**1,268**|
|---|---|---|---|
||||**451**|
||||(26)
(76)
31
(18)
(196)|
||||**(285)**|
||||159|
||||325
-|
||||**325**
943|
||||**1,268**|
|||||
All results derive from continuing activities.
All gains and losses recognised in the year are included in the Statement of Financial Activities. Movements in funds are disclosed in note 19 to the accounts.
The accompanying notes form part of the financial statements.
23
Sherwood Forest Hospitals General Charitable Fund
Annual Report and Accounts for the Year Ended 31 March 2021
## **Prior year comparatives**
## **Statement of Financial Activities for the year ended 31 March 2020**
|**Note**
**Income from:**
Donations
2
Legacies
2
Income from Investments
12
**Total income**
**Expenditure on:**
Raising Funds
_Charitable activities:_
4
Purchase of New Equipment
New Building and Refurbishment
Staff Education and Welfare
Patient Education and Welfare
**Total expenditure**
Net (losses) on investments
11
**Net income / (expenditure)**
Transfers between funds
**Net movement in funds**
_Reconciliation of funds_
Total funds brought forward
**Total funds carried forward**|Unrestricted
Restricted
Endowment
**Total at 31**
Funds
Funds
Funds
**March 2020**
£000
£000
£000
**£000**
309
191
-
500
132
-
-
132
50
-
-
50
**491**
**191**
**-**
**682**
(21)
-
-
(21)
(81)
(504)
-
(585)
(10)
10
-
-
(14)
-
-
(14)
(202)
(20)
-
(222)
**(328)**
**(514)**
**-**
**(842)**
(123)
-
-
(123)
40
(323)
-
(283)
(16)
16
-
-
**24**
**(307)**
**-**
**(283)**
754
444
28
1,226
**778**
**137**
**28**
**943**|
|---|---|
24
## Sherwood Forest Hospitals General Charitable Fund
Annual Report and Accounts for the Year Ended 31 March 2021
|**Balance Sheet as at 31 March 2021**
**Note**
_Fixed assets:_
Investments
11
**Total Fixed Assets**
_Current assets:_
Debtors
13
Cash and cash equivalents
16
**Total Current Assets**
_Liabilities:_
Creditors: amounts falling due within one
year
14
**Net current assets**
**Total net assets**
**The funds of the charity:**
19
Endowment funds
Restricted income funds
Unrestricted income funds:
**Total charity funds**|Unrestricted
Funds
£000
1,141
**1,141**
1
26
**27**
(120)
**(93)**
**1,048**
-
-
1,048
**1,048**|Restricted
Funds
£000
4
**4**
-
712
**712**
(524)
**188**
**192**
-
192
-
**192**|Endowment
Funds
£000
-
**-**
-
28
**28**
-
**28**
**28**
28
-
-
**28**|**Total**
**Funds**
**2021**
**£000**
1,145|
|---|---|---|---|---|
|||||**1,145**|
|||||1
766|
|||||**767**
(644)|
|||||**123**|
||||||
|||||**1,268**|
|||||28
192
1,048|
|||||**1,268**|
||||||
The notes on page 28 to 40 form part of these accounts.
Signed: Claire Ward (Chairman) Date: 4 November 2021
25
Sherwood Forest Hospitals General Charitable Fund
Annual Report and Accounts for the Year Ended 31 March 2021
## **Prior year comparatives**
## **Balance Sheet as at 31 March 2020**
|**Note**
_Fixed assets:_
Investments
11
**Total Fixed Assets**
_Current assets:_
Debtors
13
Cash and cash equivalents
16
**Total Current Assets**
_Liabilities:_
Creditors: amounts falling due within one
year
14
**Net current assets (liabilities)**
**Total net assets**
**The funds of the charity:**
19
Endowment funds
Restricted income funds
Unrestricted income funds:
Legacy Holding Fund
**Total charity funds**|Unrestricted
Funds
£000
977
**977**
42
(6)
**36**
(235)
**(199)**
**778**
-
-
743
35
**778**|Restricted
Funds
£000
9
**9**
-
644
**644**
(516)
**128**
**137**
-
137
-
-
**137**|Endowment
Funds
£000
-
**-**
-
28
**28**
-
**28**
**28**
28
-
-
-
**28**|**Total**
**Funds**
**2020**
**£000**
986|
|---|---|---|---|---|
|||||**986**|
|||||42
666|
|||||**708**
(751)|
|||||**(43)**|
||||||
|||||**943**|
|||||28
137
743
35|
|||||**943**|
26
## Sherwood Forest Hospitals General Charitable Fund
Annual Report and Accounts for the Year Ended 31 March 2021
**Cash Flow**
|**Cash Flow**|**Cash Flow**|||
|---|---|---|---|
|**Note**||**Total funds**
**2020-21**|**Total funds**
**2019-20**|
|||||
|**Cash flows from operating activities:**
**Net cash provided by (used in) operating activities**
17
**Cash flows from investing activities:**
Dividends, interest and rents from investments
12
Proceeds from the sale of investments
11
Purchase of investments
11
**Net cash provided by investing activities**
**Change in cash and cash equivalents in the reporting period**
**Cash and cash equivalents at the beginning of the reporting period**
Change in cash and cash equivalents due to exchange rate movements||53
37
362
(352)
47
100
666|(32)|
||||50
220
(213)|
||||57
25
641|
|||||
|**Cash and cash equivalents at the end of the reporting period**
16||**766**|**666**|
|||||
|||||
|||||
The charity has not provided an analysis of changes in net debt as it does not have any long term financing arrangements.
27
Sherwood Forest Hospitals General Charitable Fund
Annual Report and Accounts for the Year Ended 31 March 2021
## **Accounting Policies**
## **1.1. Basis of preparation**
The financial statements have been prepared under the historic cost convention, with the exception of investments which are included at fair value. The financial statements have 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 applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019) and the Charities Act 2011 and UK Generally Accepted Practice as it applies from 1 January 2015.
SFH CF meets the definition of a Public Benefit Entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.
The accounts have been prepared on the assumption that the charity is able to continue as a going concern. However, the COVID-19 pandemic has had a profound impact on the global economy, and has in turn affected the charity. The trustees have considered the impact of this issue on the charity’s current and future financial position. The charity has £1.05m of unrestricted funds and net current assets of £1.27m, and receives regular advice from our investment advisors relating to financial markets and the risk is appropriately recorded within the Charity risk register.
Allowing for the above the trustees consider that there are no material uncertainties about the Charity's ability to continue as a going concern. An unrestricted reserve is maintained to cover routine working capital requirements, and approved commitments are immaterial to the overall balance of funds held.
In future years, the key risks are a fall in income from donations or investment income but the trustees have arrangements in place to mitigate those risks (see the risk management and reserves sections of the annual report for more information).
## **1.2. Funds structure**
Where there is a legal restriction on the purpose to which a fund may be put, the fund is classified either as:
- A restricted fund; or
- An endowment fund.
Restricted funds are those where the donor has provided for the donation to be spent in furtherance of a specified charitable purpose.
Endowment funds arise when the donor has expressly provided that the gift is to be invested and only the income of the fund may be spent. These funds are sub -analysed between those where the trustees have the discretion to spend the capital, expendable endowment, and those where there is no discretion to expend the capital, permanent endowment.
28
Sherwood Forest Hospitals General Charitable Fund
Annual Report and Accounts for the Year Ended 31 March 2021
The charity has two permanent endowment funds, the Benefit of the Children's Fund and Newark Fund and no expendable endowment.
Those funds which are neither endowment nor restricted income funds, are unrestricted income funds which are sub-analysed between designated (earmarked) funds, and wholly unrestricted funds which are wholly at the trustee discretion in line with the Charity's objectives.
The major funds held in each of these categories are disclosed in note 19.
## **1.3. Income**
All income sources are recognised once the charity has entitlement to the resources, it is probable (more likely than not) that the resources will be received and the monetary value of incoming resources can be measured with sufficient reliability.
Where there are` terms or conditions attached to income, particularly grants, then these terms or conditions must be met before the income is recognised as the entitlement condition will not be met until that point. Where terms or conditions have not been met or uncertainty exists as to whether they can be met then the relevant income is not recognised in the year but deferred and shown on the balance sheet as deferred income.
Interest receivable on cash and investments is recognised monthly / quarterly in the period it accrues.
Gifts in kind are not accounted for when they are valued at less than £100 each and will be accepted and then immediately distributed.
Where gifts in kind do not meet these criteria, they are recognised at fair value as stock until they are distributed
## **1.4. Income from legacies**
Legacies are accounted for as incoming resources either upon receipt or where the receipt of the legacy is probable.
## Receipt is probable when:
- Confirmation has been received from the representatives of the estate(s) that probate has been granted or;
- The executors have established that there are sufficient assets in the estate to pay the legacy; and
- All conditions attached to the legacy have been fulfilled or are within the charity’s control.
If there is uncertainty as to the amount of the legacy and it cannot be reliably estimated then the legacy is shown as a contingent asset until all of the conditions for income recognition are met.
## **1.5. Income from endowment funds**
The income received from the invested endowment fund is wholly restricted.
29
Sherwood Forest Hospitals General Charitable Fund
Annual Report and Accounts for the Year Ended 31 March 2021
## **1.6. Expenditure and irrecoverable VAT**
All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to each category of expense shown in the Statement of Financial Activities. Expenditure is recognised when the following criteria are met:
- There is a present legal or constructive obligation resulting from a past event;
- It is more likely than not that a transfer of benefits (usually a cash payment) will be required in settlement; and
- The amount of the obligation can be measured or estimated reliably.
Irrecoverable VAT is charged against the category of resources expended for which it was incurred.
The charity does not make grants to individuals. The total costs of making grants is disclosed on the face of the Statement of Financial Activities. The actual disbursement received by the beneficiaries for each category of charitable activity is disclosed in note 4. All grants are made to the Sherwood Forest Hospitals NHS Foundation Trust and the trustee operates a scheme of delegation, through which all grant funded activity is managed by fund holders responsible for the day to day disbursements on their projects, in accordance with the directions set out by the trustees in charity standing orders and financial instructions.
Grants payable are payments made to related party or third party NHS bodies and nonNHS bodies in the furtherance of the charitable objectives of the funds held on trust, primarily relief of those who are sick. The grants are accounted for on an accruals basis where the conditions for their payment have been met or where the recipient has a reasonable expectation they will receive a grant. Provisions are made where approval has been given by the trustee due to the approval representing a firm intention which is communicated to the recipient.
## **1.7. Allocation of support costs**
Support costs are those costs which do not relate directly to a single activity. These include some staff costs, costs of administration, internal and external audit costs and IT support. Support costs have been apportioned between fundraising costs and charitable activities on an appropriate basis. The analysis of support costs and the bases of apportionment applied are shown in note 5.
## **1.8. Fundraising Costs**
The costs of generating funds are those costs attributable to generating income for the charity, other than those costs incurred in undertaking charitable activities or the costs incurred in undertaking trading activities in furtherance of the charity’s objects. These include:
i) Donations given by patients and their relatives which are forwarded, currently at nil charge by the Trust;
ii) Legacies which are encouraged by leaflets throughout the hospital, the cost of which is immaterial;
iii) Fundraising events; and
iv) Investment management fees.
30
Sherwood Forest Hospitals General Charitable Fund
Annual Report and Accounts for the Year Ended 31 March 2021
## **1.9. Charitable activities**
Costs of charitable activities comprise all costs incurred in the pursuit of the charitable objects of the charity. These costs, where not wholly attributable, are apportioned between the categories of charitable expenditure in addition to the direct costs. The total costs of each category of charitable expenditure include an apportionment of support costs as shown in note 5.
## **1.10. Fixed asset investments**
Investments are a form of basic financial instrument. Fixed asset investments are initially recognised at their transaction value and are subsequently measured at their fair value (market value) as at the balance sheet date. The statement of financial activities includes the net gains and losses arising on revaluation and disposals throughout the year. Quoted stocks and shares are included in the balance sheet at the current market value quoted by the investment analyst, excluding dividend. The main form of financial risk faced by the charity is that of volatility in equity markets and investment markets due to wider economic conditions, the attitude of investors to investment risk, and changes in sentiment concerning equities and within particular sectors or sub sectors.
## **1.11. Debtors**
Debtors are amounts owed to the charity. They are measured on the basis of their recoverable amount.
## **1.12. Cash and cash equivalents**
Cash at bank and in hand is held to meet the day to day running costs of the charity as they fall due. Cash equivalents are short term, highly liquid investments, usually in 90 day notice interest bearing savings accounts.
## **1.13. Creditors**
Creditors are amounts owed by the charity. They are measured at the amount that the charity expects to have to pay to settle the debt.
Amounts which are owed in more than a year are shown as long term creditors.
## **1.14. Realised and Unrealised gains and losses**
All gains and losses are taken to the Statement of Financial Activities as they arise. Realised gains and losses on investments are calculated as the difference between sales proceeds and opening carrying value (purchase date if later). Unrealised gains and losses are calculated as the difference between the market value at the year end and opening carrying value (or purchase date if later).
## **1.15. Related party transactions**
The Sherwood Forest Hospitals NHS Foundation Trust (SFH FT) is the sole beneficiary of the charity. The charity has reimbursed the SFH FT for approved expenditure made on behalf of the charity. These reimbursements are included in the analysis of expenditure as detailed in note 4. During the year none of the
31
Sherwood Forest Hospitals General Charitable Fund
Annual Report and Accounts for the Year Ended 31 March 2021
members of the SFH FT Board of Directors or Senior Sherwood Forest Hospitals NHS Foundation Trust staff or parties related to them were beneficiaries of the charity.
None of the trustees or members of the SFH FT board or parties related to them has undertaken any transactions with the Charitable Trust or received any benefit from the charity in payment or kind. The trustees received no honoraria or emoluments in the year.
The SFH FT makes a number of clerical and transaction services available to the charity, by agreement with the trustees. These include administrative services in support of the charity’s grant making activities which are included within support costs as detailed in note 5.
## **1.16. Accounting Estimates**
In the application of the charity's accounting policies, management is required to make judgements and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. These estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from those estimates. The estimates and underlying assumptions are continually reviewed. Revisions to accounting estimates are recognised in the period in which the estimate is revised and if the revision affects only that year, or in the year of the revision and future years if the revision affects both current and future years.
Estimates included in this year's financial statements are:
- Accrued expenditure based on the best estimate known at the time of the financial statements;
- Apportionment of support costs to charitable activities;
- Assessment of market value of investments; and
- Value of commitments and the expected timing of their cash flows.
32
Sherwood Forest Hospitals General Charitable Fund
Annual Report and Accounts for the Year Ended 31 March 2021
## **NOTES TO THE ACCOUNTS**
|**2.0. Income from donations and legacies**
Donations from individuals
Voluntary income: legacies
**Total**
Donations from individuals
Voluntary income: legacies
Legacy Holding Fund
**Total**|**Unrestricted**
**funds**
£000
187
42
**229**
**Unrestricted**
**funds**
£000
309
97
35
**441**|**Restricted**
**funds**
£000
185
-
**185**
**Restricted**
**funds**
£000
191
-
-
**191**|**Total**
**2021**
**£000**
372
42|
|---|---|---|---|
||||**414**|
||||**Total**
**2020**
**£000**
500
97
35|
||||**632**|
Donations from individuals are gifts from members of the public, relatives of patients and staff and aslo includes funds granted from NHS Charities Together.
## **3.0. Analysis of income from other trading activities**
There were no incoming resources from other trading activities (2019/20 £nil).
## **4.0. Analysis of charitable expenditure**
The charity did not undertake any direct charitable activities on its own account during the year. All of the charitable expenditure was in the form of grant funding.
Grants were approved in favour of the partner organisations SFH FT to carry out activities that will benefit NHS patients and their families.
|Purchase of New Equipment
New Building and Refurbishment
Staff Education and Welfare
Patient Education and Welfare
**Total**|**Grant funded**
**activity**
**£000**
64
(26)
15
163
**216**|**Support**
**costs**
**£000**
12
(5)
3
32
**42**|**Total**
**2021**
**£000**
76
(31)
18
195|
|---|---|---|---|
||||**258**|
Analysis includes support costs and overheads administration which are disclosed in note 5.
The negative expenditure on New Building and Refurbishment relates to the reversal of committed expenditure not actually utilised.
|**Prio Year Comparators**
Purchase of New Equipment
New Building and Refurbishment
Staff Education and Welfare
Patient Education and Welfare
Total|Grant funded
activity
£000
550
-
13
208
771|Support costs
£000
35
-
1
14
50|Total
2020
£000
585
-
14
222|
|---|---|---|---|
||||821|
|||||
33
## Sherwood Forest Hospitals General Charitable Fund
Annual Report and Accounts for the Year Ended 31 March 2021
## **5.0. Allocation of support costs and overheads**
Support and overhead costs are allocated between fundraising activities and charitable activities. Governance costs are those support costs which relate to the strategic and day to day management of a charity.
The bases of allocation used are as follows:
- Direct allocation: where a cost is wholly attributable to a particular activity.
- Expenditure: this is a proportion based on the average fund balance.
|Salary recharge
External Audit
Governance
Computer Expenses
Investment Management fees
**General Administration Overheads**|**Raising**
**funds**
**Charitable**
**Activities**
**Total**
**2021**
**£000**
**£000**
**£000**
12 26 38
- 6 6
4
9
13
- - -
10 -
10
**26 41 67**|Raising
funds
Charitable
Activities
Total
2020
£000
£000
£000
11 26 37
- 6 6
4
10 14
Based on fundraising /
charitable activities
percentage costs
- 1 1
6 6
12
Based on fundraising /
charitable activities
**21 49 70**
**Basis of apportionment**
Expenditure
Expenditure
Expenditure|
|---|---|---|
34
Sherwood Forest Hospitals General Charitable Fund
Annual Report and Accounts for the Year Ended 31 March 2021
## **6.0. Trustees' remuneration, benefits and expenses**
The charity’s trustees are corporate trustees and receive no remuneration for the work that they undertake as trustees.
## **7.0. Analysis of staff costs**
No emoluments were paid to employees in 2020/21 (2019/20 £nil), however there was a recharge of £51k in year relating to SFH staff as disclosed in note 5. (2019/20 £51k).
## **8.0. Auditors’ remuneration**
Auditors’ remuneration fee of £6,420 including VAT was charged in 2020/21 (2019/20 £6,240). No other additional work was undertaken (2019/20 £nil).
## **9.0. Analysis of grants**
||**Total amount paid**|
|---|---|
|**Institution receiving grant**
**support:**|
**2020/21**
2019/20
**£000**
£000
216
771|
|||
|SFH FT||
|**Total**|**216**
771|
## **10.0. Role of volunteers**
Like all charities, the SFH Charity is reliant on a team of volunteers for our smooth running. Our volunteers perform 2 roles:
Fund advisors – there are about 50 SFH FT staff who manage how the charity’s designated funds should be spent. These funds are designated (or earmarked) by the trustees to be spent for a particular purpose or in a particular ward or department. Each fund advisor has delegated powers to spend the designated funds that they manage in accordance with the trustee’s wishes. The trustees determine what each fund can be spent on and the amount that can be spent in a year.
Fund raisers – a team of hospital volunteers actively fundraise and support the charity by holding stalls, coffee mornings, tombola’s and raffles. The team work in partnership with individuals, groups and businesses assisting at events to raise funds for specific appeals and trust funds.
In accordance with the SORP, due to the absence of any reliable measurement basis, the contribution of these volunteers is not recognised in the accounts.
35
Sherwood Forest Hospitals General Charitable Fund
Annual Report and Accounts for the Year Ended 31 March 2021
**11.0. Fixed asset investments:**
|**Movements in fixed asset investment**||**2021**
**£000**|2020
£000|
|---|---|---|---|
|Market value at 1 April
Less: Disposals proceeds
Add: Additions to investment at cost
Less: Realised loss on disposal
Add Net gain / (loss) on revaluation||986
(362)
352
(34)
203|1,109
(220)
213
7
(123)|
|Market value at 31 March||**1,145**|986|
|||||
|Historic purchase cost at 31 March||**1,100**|1,100|
|**Fixed asset investment by Type**
Investments in a Common Deposit Fund or
Common Investment Fund|Held
in UK
£000
1,145
1,145|**2021**
**Total**
**£000**
1,145
**1,145**|2020
Total
£000
986|
||||986|
All investments are carried at their fair value.
The significance of financial instruments to the on-going financial sustainability of SFH is considered in the risk analysis section of the trustees’ annual report.
The main risk from financial instruments lies in the combination of uncertain investment markets and volatility in income (or yield).
**Interest Rate Risk.** The combination of market uncertainty and continued asset purchasing programmes has anchored bond yields at abnormally low levels. This gives rise to a significant downside risk of a fall in capital values when interest rates return to normal levels. Furthermore, persistent demand for high quality corporate bond and government stock continues to keep yields low.
**Default Risk.** The majority of the fixed interest holdings in the portfolio are issued by creditors categorised as ‘High Grade’. These issuers carry relatively low credit risk and the default rate on investment grade fixed interest securities due to corporate failures has so far been low.
**Liquidity Risk** . Liquidity risk within the portfolio is anticipated to be low as all assets are traded and the commitment to intervention by central banks and market regulators has continued to provide for orderly trading in most markets. Nearly all the Trust’s investments are traded in markets with good liquidity and high trading volumes and can be sold to provide liquidity within a week (with the exception of two holdings in Commercial Property). The only asset class which has historically exhibited poor liquidity is Commercial Property. The Trust has investments in two Charity Property Funds which were both gated for six months during 2020, during a period of extreme volatility, triggered by the coronavirus pandemic. The two funds represented 8.5% of the Trust’s investments at the time. This suspension was for regulatory reasons rather than liquidity reasons and the funds continued to pay a good level of income while temporarily gated. The funds are not currently gated. The Trust has no material investment holdings in markets subject to exchange controls or trading restrictions.
The Trust does not make use of derivatives and similar complex financial instruments as it takes the view that investments are held for their longer term yield total return and historic studies of quoted financial instruments have shown that volatility in any particular 5 year period will normally be corrected.
**Currency Risk** . Although the Trust does not ordinarily take stand-alone currency positions, the investment process takes into account currency forecasts when creating the asset allocation framework. Within overseas fixed interest, hedged units are purchased where available to negative currency risk in an already low-yielding asset class.
**Concentration Risk** . Concentration risk is minimised through broad diversification of investments at an asset class, geographic and sector level.
The Trust manages these investment risks by retaining expert advisors and operating an investment policy that provides for a high degree of diversification of holdings within investment asset classes
36
Sherwood Forest Hospitals General Charitable Fund
Annual Report and Accounts for the Year Ended 31 March 2021
|**12.0. Gross Investment Income**|**Unrestricted**
**funds**|**Restricted**
**funds**
**2021**
2020
**Total**
Total
**£000**
£000|
|---|---|---|
|Investments in a Common Deposit Fund or Common
Investment Fund
Short term investments and cash on deposit|37
-|-
**37**
47
-
**-**
3|
|**Total**|37|-
**37**
50|
|All investments are held in the UK.
**13.0. Analysis of Debtors**
Amounts falling due within one year:|**2021**
**£000**|2020
£000|
|Accrued income|1|42|
|Total debtors falling due within one year
**Total debtors**
**14.0. Analysis of Liabilities**
There are no debtors falling due after more than one year.|**1**
**1**
**2021**
**£000**|42
42
2020
£000|
|Creditor Amounts falling due within one year:||53
698
751|
|Trade creditors
Accruals|487
157||
|Total creditors falling due within one year|**644**||
|**Total creditors**|**644**|751|
|||2020
£000
986
986|
|**15.0. Financial Instruments at Fair Value**|||
|Financial assets measured at fair value
Relates to stock market investments.|**2021**||
||**£000**||
||1,145||
||**1,145**||
||||
37
Sherwood Forest Hospitals General Charitable Fund
Annual Report and Accounts for the Year Ended 31 March 2021
|**16.0.**
**Cash and cash equivalents**
Cash in hand|**2021**
**£000**|2020
£000|
|---|---|---|
|Notice deposits (less than 3 months)|766|666|
|**Total cash and cash equivalents**|**766**|666|
The notice deposits are sums held on interest bearing deposit and represent funds held to facilitate cash flow and the fulfilment of obligations to make grant payments. The funds are held on a 90 day notice account and are therefore classified as cash and cash equivalent.
No cash or cash equivalents or current asset investments were held in non-cash investments or outside of the UK.
All of the amounts held on interest bearing deposit are available to spend on charitable activities.
## **17.0. Reconciliation of net income/(expenditure) to net cash flow from operating activities**
||**2021**
**£000**|2020
£000|
|---|---|---|
|**_Net income/(expenditure) for 2020/21 (as per the statement of_**|**325**
(159)
(10)
(37)
41
(107)
**53**||
|**_financial activities)_**||(283)
123
(7)
(50)
11
174
(32)|
|**Adjustments for:**
(Gains)/losses on investments
Notional cash movement on Investments
Dividends, interest and rents from investments
(Increase)/decrease in debtors
Increase/(decrease) in creditors|||
|**_Net cash provided by (used in) operating activities_**|||
|**18.0.**
**Timing of commitments**|**2021**
**£000**|2020
£000|
|Commitments payable in under 1 year|97|622|
|Total cumulative commitments that remain undischarged as at 31
March|**97**|622|
As described in note 9, the charity awards a number of grants in the year. Many grants are awarded and paid out in the same financial year. However, some grants for funding a specific project are multi-year grants paid over a longer period.
As the charity has control over the award and timing of grants there is little uncertainty around these payments.
38
## Sherwood Forest Hospitals General Charitable Fund
Annual Report and Accounts for the Year Ended 31 March 2021
## **19.0. Analysis of charitable funds**
|Medicine
Surgery
**Total Balances**
Urgent and Emergency
**Endowment Funds**
General Fund[7]
Benefit of the Children's Fund[2]
Cancer Appeal[3]
Other
Dementia Appeals[4]
Gamma Camera Appeal[5]
Earmarked Funds[8]
Breast Screening[6]
**Restricted Funds Subtotal**
**Unrestricted and Designated Fun**
Benefit of the Children's Fund[1]
**Endowment Funds Subtotal**
Medical Equipment Legacy Fund[10]
Covid[11]
End of Life[12]
NHS Charities Together[13]
**Restricted Funds**
Womens and Children's
Diagnostics and Outpatients
Legacy Holding Fund[9]|**Balance at**
**31 March**
**2020 c/fwd**
**£000**
28
**28**
9
1
62
5
10
50
-
-
-
**137**
3
99
106
21
289
59
166
35
**778**
**943**
**ds**|Balance
at 1 April
2020
b/fwd
Incoming
resources
Resources
expended Transfers
Gains and
losses
**Balance**
**at 31**
**March**
**2021**
£000
£000
£000
£000
£000
**£000**
28
-
-
-
-
28|
|---|---|---|
|||**28**
**-**
**-**
**-**
**-**
**28**|
|||9
-
-
(5)
-
4
1
2
0
18
-
21
62
-
2
(60)
-
4
5
1
(1)
1
-
6
10
1
-
-
-
11
50
-
-
-
-
50
-
36
(19)
-
-
17
-
22
(6)
8
-
24
-
123
(68)
-
55|
|||**137**
**185**
**(92)**
**(38)**
**-**
**192**|
|||3
62 (85)
27
159
166
99
57 (55)
41
-
142
106
11
2
-
-
119
21
3 (1)
-
-
23
289
77 (38)
-
-
328
59
20 (14)
-
-
65
166
36 (2)
5
-
205
35
-
-
(35)
-
-|
|||**778**
**266**
**(193)**
**38**
**159**
**1,048**|
||||
|||**943**
**451**
**(285)**
**-**
**159**
**1,268**|
[1] / [2]This is a permanent endowment fund where only the income generated by the investment of this capital can be spent. All income generated is transferred to the Benefit of the Children's restricted fund where it must be used for the benefit of the Children's Unit at Kings Mill Hospital.
[3] This fund is currently inactive and permission has been sought from the Charity commission in 2021/22 for it to be transferred to earmarked funds and closed..
[4] This relates to specific appeals that were commenced prior year to enhance Dementia facilities at Kings Mill and Newark Hospitals.
[5] This relates to a specific appeal that commenced in March 2018 to replace the Gamma camera at Kings Mill Hospital.
[6] This relates to a specific appeal that commenced October 2018 to support the new Breast screening service at Newark Hospital.
[7] The **general fund** includes all donations for which a donor has not expressed any preference as to how the funds shall be spent and the unrestricted income accruing to the charity. These funds are applied for any charitable purpose to the benefit of the patients of SFH FT at the absolute discretion of the trustees.
[8] Earmarked funds are reported by Division to aid transparency. A complete breakdown of the individual funds within each heading is available upon written request _**.**_
[9] The fund exists to hold legacies where we have had notification, but not receipt of monies. These funds are held until receipt and then transferred to the relevant fund, in line with the will. Keeping the funds separate ensures we account correctly for the monies, but also that the funds are not expended prior to receipt.
[10] This relates to a specific legacy which can only be utilised on the purchase of medical equipment
[11] Monies specifially donated for staff health and wellbeing
[12] Grant received to aid staff health and Wellbeing
[13] Specific project to enhance facilities for Patient Care
[14] The movement between Dementia and other is due to an expenditure misclassification in 19/20 to ensure the individual balances accurately reflect available funds.
[15] The movement between Cancer and other is due to an expenditure reclassification between divisonal cancer funds and the cancer appeal fund to ensure the individual balances accurately reflect available funds.
39
## Sherwood Forest Hospitals General Charitable Fund
Annual Report and Accounts for the Year Ended 31 March 2021
## **19.0. Analysis of charitable funds**
|Breast Screening[6]
Legacy Holding Fund[9]
Medicine
Surgery
**Total balances**
**Unrestricted and designated funds**
**Endowment funds**
Benefit of the Children's Fund[1]
**Endowment funds subtotal**
**Restricted funds**
Benefit of the Children's Fund[2]
Cancer Appeal[3]
Dementia Appeals[4]
Gamma Camera Appeal
[5]
**Restricted funds subtotal**
**Prior year comparatives**
Medical Equipment Legacy Fund
[10]
General Fund[7]
Earmarked Funds
[8]
Other
Diagnostics and Outpatients
Urgent and Emergency Care
Womens and Children's
Legacy Holding Fund
[9]|Balance at
31 March
2019 c/fwd
£000
28
**28**
9
-
61
306
18
50
**444**
70
55
91
28
265
90
155
-
**754**
**1,226**|Balance
at 1 April
2019
b/fwd
Income Expenditure Transfers
Gains and
losses
**Balance**
**at 31**
**March**
**2020**
£000
£000
£000
£000
£000
**£000**
28
-
-
-
-
28|
|---|---|---|
|||**28**
**-**
**-**
**-**
**-**
**28**|
|||9
-
-
-
-
9
-
1
-
-
-
1
61
1
-
-
-
62
306
164
(486)
21
-
5
18
25
(28)
(5)
-
10
-
-
-
50
50
50
-
-
(50)
-
-|
|||**444**
**191**
**(514)**
**16**
**-**
**137**|
|||70
137 (81)
-
(123)
3
55
197 (137)
(16)
-
99
91
19 (9)
5
-
106
28
1 (8)
-
-
21
265
59 (35)
-
-
289
90
16 (42)
(5)
-
59
155
27 (16)
-
-
166
-
35 -
-
-
35|
|||**754**
**491**
**(328)**
**(16)**
**(123)**
**778**|
||||
|||**1,226**
**682**
**(842)**
**-**
**(123)**
**943**|
## **20.0. Post year-end events**
In line with section 32 of FRS102 the Trustees are not aware of any adjusting or non adjusting events since the close of the accounting period, which would affect the position reported, or the assessment of its going concern basis.
40
## **General Charitable Fund ANNUAL REPORT AND FINANCIAL STATEMENTS**
**Year Ended: 31 March 2021**
Sherwood Forest Hospitals General Charitable Fund
Annual Report and Accounts for the Year Ended 31 March 2021
|**Contents**||
|---|---|
||**Page**|
|Reference and Administrative Information|2-3|
|Trustee’s Annual Report|4 -17|
|Statement of Trustee Responsibilities|18|
|Independent Auditor’s Report to the Members of||
|Sherwood Forest Hospitals General Charitable Fund|19 - 22|
|Statement of Financial Activities|23|
|Balance Sheet|25|
|Cash Flow|27|
|Accounting Policies and Notes|28 - 40|
1
Sherwood Forest Hospitals General Charitable Fund
Annual Report and Accounts for the Year Ended 31 March 2021
## **Reference and Administrative Information**
## **Trustee Arrangements**
Sherwood Forest Hospitals General Charitable Fund is registered with the Charity Commission, following a ‘Deed of Amendment’ dated 9 July 2002 with Sherwood Forest Hospitals NHS Foundation Trust as the Corporate Trustee.
The members of the NHS Foundation Trust Board of Directors who served during the financial year were as follows:
Mr J. MacDonald Chair Mr R Mitchell Chief Executive Officer Mr P Robinson Chief Financial Officer Dr D Selwyn Executive Medical Director Ms J Hogg Chief Nurse Ms S Higginbotham Director of Corporate Affairs / Company Secretary Mr S Barton Chief Operating Officer Ms C Teeney Director of People Ms E Challans Director of Culture and Improvement Mr R Smith Head of Communications Ms Lorna Branton Director of Communications[1 ] Mr T Reddish Senior Independent Non-Executive Ms C Ward Independent Non-Executive Mr G Ward Independent Non-Executive Mr N Gossage Independent Non-Executive Mrs B Brady Independent Non-Executive Ms M Gill Independent Non-Executive
[1] Commenced 16 November 2020
## **Charitable Fund Committee Membership**
Mr T Reddish Independent Non-Executive Advisor and Chair Mr G Ward Independent Non-Executive Advisor Mrs B Brady Independent Non-Executive Advisor Mr P Robinson Chief Financial Officer Ms S Higginbotham Director of Corporate Affairs / Company Secretary Mr M Powell Head of Financial Services Mr P Harper Head of Strategic Planning Mr R Smith Head of Communications Ms K Beadling Barron Head of Communications Ms T Brassington Community Involvement Manager Mr R. Mills Deputy Chief Financial Officer Ms R Briggs Divisional General Manager Ms H Hollis Governor (Observer) Mr A Mackie Governor (Observer) Ms J Thornley Secretary to Committee
2
Sherwood Forest Hospitals General Charitable Fund
Annual Report and Accounts for the Year Ended 31 March 2021
Other non-voting members are in attendance as required.
## **Registered Office**
The registered office of the Trustee is King’s Mill Hospital, Mansfield Road, Sutton in Ashfield, Nottinghamshire, NG17 4JL.
## **Registration Number**
The Charity is registered with the Charity Commission – Registered Number 1054086.
## **Principal Professional Advisors**
**Internal Auditors** 360 Assurance Riverside House Bridge Park Road Thurmaston Leicester LE4 8BL
**Bankers** Nottingham Building Society 1 Stockwell Gate Mansfield Nottinghamshire Government Banking Services Natwest Bank 2[nd] Floor 280 Bishopsgate London EC2M 4RB
**External Auditors** Godfrey Wilson Limited 5[th] Floor Mariner House 62 Prince Street Bristol BS1 4QD **Investment Advisors** Investec Wealth and Investment 2 Gresham Street London EC2V 7QN **Solicitors** Kings Orchard 1 Queen Street Bristol BS2 0HQ
3
Sherwood Forest Hospitals General Charitable Fund
Annual Report and Accounts for the Year Ended 31 March 2021
## **Trustee’s Annual Report**
## **Foreword**
Sherwood Forest Hospitals Charitable Fund (SFH) was formally created on 9 July 2002, replacing the King’s Mill General Charitable Fund which had been in existence since 13 March 1996 following the transfer of funds from North Nottingham Health Authority.
The Sherwood Forest Hospitals NHS Foundation Trust is constituted as the sole corporate trustee, and all unrestricted funds are available to be applied for any charitable purpose or purposes relating to hospital and health services.
These accounts have been prepared in line with Financial Reporting Standard 102 (FRS 102).
The Charity’s annual report and accounts for the year ending 31 March 2021 have been prepared by the corporate trustee in accordance with the Charities Act 2011 and the Charities (Accounts and Reports) Regulations 2005 (Statement of Recommended Practice (SORP) 2019). The Charity’s report and accounts include all the separately established funds for which the Trust is the sole beneficiary.
The charitable funds are registered (Number 1054086) in accordance with the Charities Act 2011.
## **Administrative Details**
The main charity is an umbrella charity under which 3 funds are individually registered. There were a total of 45 (2019/20: 40) active individual funds maintained within the accounting records as at 31 March 2021 and the notes to the accounts distinguish the types of fund and disclose separately all material funds.
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 2006 and these funds are held on trust by the corporate body.
## **Trustee**
The Trust is the corporate trustee of the charitable funds governed by the law applicable to Trusts, principally the Trustee Act 2000 and also the law applicable to Charities, which is governed by the Charities Act 2011.
The Board of Directors devolves responsibility for the on-going management of funds to the Charitable Funds Committee to administer the funds on behalf of the corporate trustee. Details of the trustee and committee members are disclosed on pages 2 and 3.
4
Sherwood Forest Hospitals General Charitable Fund
Annual Report and Accounts for the Year Ended 31 March 2021
## **Key management personnel remuneration**
The trustees have concluded that the board of trustees and the charitable fund committee comprise the key management personnel of the charity as they are in charge of:
- Directing and controlling the charity; and
- Running and operating the charity on a day to day basis.
All trustees give of their time freely and no trustee remuneration or expenses were paid in the year.
Trustees are required to disclose all relevant interests and register them with the trust fund director and withdraw from decisions where a conflict of interest arises. All related party transactions are disclosed in note 1.15 to the accounts.
## **Principal Charitable Fund Advisor to the Board of Directors**
Under a scheme of delegated authority approved by the corporate trustee (Board of Directors), the Chief Financial Officer of the NHS Foundation Trust has responsibility for the management of the charitable fund, and the Head of Financial Services is the principal officer overseeing the day-to-day financial management and accounting for the charitable funds during the year.
## **Professional Advisors**
The principal professional advisors to the corporate trustee are detailed on page 3.
## **Structure, Governance and Management**
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 either part of this unrestricted fund or registered as separate restricted funds under the main charity. Subsequent donations and gifts received by the charity that are attributable to the original funds are added to those fund balances within the existing charity. Where funds have been received which have specific restrictions set by the donor, new restricted funds have been established.
The charitable funds available for spending are allocated to specialties. Each allocation is managed by use of a designated fund within the general unrestricted fund. For example there are charitable funds for areas such as Gynaecology, Opthamology, and Neonatal. In addition there are general funds which mirror the Directorate management structure and funds associated with specific fund raising appeals which are detailed in note 19.
5
Sherwood Forest Hospitals General Charitable Fund
Annual Report and Accounts for the Year Ended 31 March 2021
Members of the Trust Board of Directors and the Charitable Fund Committee are not individual trustees under Charity Law but act as agents on behalf of the corporate trustee. Since becoming a Foundation Trust on 1 February 2007, the Chair, NonExecutive Directors, Chief Executive and Executive Directors are appointed to the Board of Directors in accordance with section 9 of the Trust's constitution.
The Trust Council of Governors is responsible for appointing the Chair and the Chair and Governors are responsible for appointing the Non-Executive Directors. The Chair and Non-Executive Directors are responsible for appointing the Chief Executive, and the Chair, Chief Executive, and Non-Executive Directors are responsible for appointing the Executive Directors.
The Charitable Fund Committee manages the charitable funds under delegated authority.
To assist the Trustee in fulfilling its role a number of documents are provided including; two years’ accounts and annual reports, the latest external audit opinion on the annual report and accounts, minutes from previous meetings, the committee terms of reference and fund raising strategy. In addition a number of Charity Commission publications are provided along with copies of the Standing Orders, Standing Financial Instructions and the Scheme of Delegation.
Acting for the corporate trustee, the Charitable Fund Committee is responsible for the overall management of the charitable fund. The committee is required to:
- Ensure the stewardship and effective management of funds which have been donated, bequeathed and given to the Sherwood Forest Hospital’s General Charitable Fund for charitable purposes;
- Control, manage and monitor the use of the fund’s resources;
- Ensure a fund-raising strategy is prepared and monitored which complies with Charity Commission guidance and legislation;
- Provide support, guidance and encouragement for all its income raising activities whilst managing and monitoring the receipt of all income;
- Ensure that ‘best practice’ is followed in the conduct of all its affairs fulfilling all of its legal responsibilities;
- Ensure that the investment policy approved by the NHS Foundation Trust Board of Directors, as corporate trustee, is adhered to and that performance is continually reviewed whilst being aware of ethical considerations; and
- Keep the Trust Board of Directors fully informed on the activity, performance and risks of the charity.
On a quarterly basis (and as required) information is routinely provided to the Charitable Fund Committee on fund, cash and investment balances, expenditure commitments and fundraising, as well as legacy and income updates.
In addition, information is provided regarding changes to legislation, along with updates from our external investment advisors.
6
Sherwood Forest Hospitals General Charitable Fund
Annual Report and Accounts for the Year Ended 31 March 2021
The accounting records and the day-to-day administration of the funds are dealt with by the Finance Department located at the principal office: King’s Mill Hospital, Mansfield Road, Sutton in Ashfield, Nottinghamshire, NG17 4JL.
In year the committee also reviewed and approved the:
- Terms of Reference;
- Annual Work Plan;
- Investment and Reserves Policy;
- Charity Risk register; and
- External Audit report.
The committee also
- Completed a self-assessment Committee Health Check; and
- Completed a Governance self-assessment.
The aim of the Committee Health Check and self-assessment is to help committees review their governance arrangements and check that they have appropriate systems in place.
## **Risk Management**
The Trustee has considered the major risks to which the charity is exposed and has reviewed those risks and established systems and procedures to manage those risks. The Trustee considers the variability of investment returns to constitute the charity’s only significant financial risk, particularly at present with the on-going fluctuations in the stock market due to Covid 19. The main operational concern is to ensure that both spending and firm financial commitments remain in line with income. This is continually reviewed to ensure that forecast income and commitments, including investment returns, remain in line with planning assumptions which are routinely updated to reflect the latest actual and forecasts.
The Charity’s accounts and financial procedures are subject to regular internal and external audit review, reported to the Charitable Fund Committee, along with compliance in implementing any associated recommendations.
## _**Partnership working and networks**_
The charity continues to participate in the ‘Charitable Funds Special Interest Group’, run by the Healthcare Finance Management Association, in liaison with the Charity Commission, to help ensure that the Trustee is kept informed and fully updated on all current and developing issues.
Sherwood Forest Hospitals NHS Foundation Trust is the main beneficiary of the charity and is a related party by virtue of being the corporate trustee of the charity. By working in partnership with the Trust, the charitable funds are used to best effect and so when deciding upon the most beneficial way to use charitable funds the corporate trustee has regard to the main activities, objectives, strategies and plans
7
Sherwood Forest Hospitals General Charitable Fund
Annual Report and Accounts for the Year Ended 31 March 2021
of the Trust. 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 donors to benefit patient care and advance the good health and welfare of patients, carers and staff.
The Trust remains indebted to the work of our hospital volunteers who support Sherwood Forest Hospitals Foundation Trust and raise substantial funds through refreshments bars, trolley services and their fundraising activities. The League of Friends of Newark Hospital and the League of Hospital Friends (Mansfield & Sutton) continue to raise funds for our hospitals through the work of their volunteers assisting with a wide range of fundraising activities which include coffee mornings, hospital refreshment bars, stalls and raffles.
## _**Objectives and Strategy**_
The charity’s main fund has NHS-wide objectives as follows:
**“The trustee shall hold the trust fund upon trust to apply the income, and at its discretion, so far as may be permissible, the capital, for any charitable purpose or purposes relating to the National Health Service”.**
**“Specifically the principal objective of the charity is to provide additional support to the patients of the Sherwood Forest Hospitals NHS Foundation Trust. This is achieved by the prioritisation of needs and the granting of expenditure on items such as refurbishment, medical equipment and staff education and welfare”.**
Grants are made in accordance with charity law, our constitution and the wishes and directions of donors. In making grants, we endeavour to reflect the wishes of patients and staff by directing funds towards areas they tell us are most in need. During the year 2020/21, grants totalling £0.22m (2019/20 £0.77m) were made.
Our key aim is to serve the NHS patients of Sherwood Forest Hospitals NHS Foundation Trust ensuring all grants made are in line with the Charity Commission guidance on Public Benefit. By working with the NHS we assist people from every walk of life, irrespective of race, creed, ethnicity or personal or family financial circumstances. We put this aim into practice by helping the children, their families and carers, and visitors to the hospital by:
- Enhancing the care our partner hospital can offer through new equipment and building improvements to deliver better facilities;
- Investment in people and in creating a caring environment for the patients receiving care, their families and visitors; and
- Provide direct support to patients by way of information, networking support, better facilities and occasional grants.
We do this through a range of programs funded by your generous donations. Highlights from the main programs undertaken in the year are detailed below to give you a wider understanding of the difference we can make together to young lives today and in the future.
8
Sherwood Forest Hospitals General Charitable Fund
Annual Report and Accounts for the Year Ended 31 March 2021
Patients’ Expenditure: Purchase of small items of equipment, provision of services and the provision of facilities not normally provided by, or in addition, to the normal NHS provision. Staff Expenditure: Motivation of staff, by improving staff facilities and providing services that improve staff wellbeing. Education of staff by providing education over and above what would normally be provided by the NHS. Capital Equipment: Equipment in addition to that normally provided by the NHS.
All annual expenditure is based on the above objectives, with the primary emphasis being placed on patients’ expenditure to improve their quality of care and patient experience.
Making the Trustee vision happen involves all our partners, staff, patients, carers and the community and we invite you to join us to make this a reality. If you want to know more about how to become involved or to take part in the fundraising or to make a donation please contact the Community Involvement Department on 01623 672371.
## **Just Giving Website / Just Giving Text**
Advice on ‘Just Giving’ regarding fundraising and the ability to donate should be obtained from the Community Involvement Department. (http://www.justgiving.com/sherwoodforest)
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Sherwood Forest Hospitals General Charitable Fund
Annual Report and Accounts for the Year Ended 31 March 2021
## **Annual Review: Our Activities**
During the year, the funds continued to support a wide range of charitable and health related activities benefiting both patients and staff. In general they are used to purchase additional goods and services that the NHS is unable to provide.
Charitable funds receive many donations and these are used for charitable activities that will benefit staff and patients. The charitable funds also enable staff to attend courses, not funded by the NHS, which will update them on the new ideas and modern techniques in their specialty.
The general purposes fund receives donations and legacies that can be used for any charitable purpose relating to the NHS.
Income of £451k was received during 2020/21 (£681k in 2019/20) of which £42k (£132k in 2019/20) related to legacies. All legacies are reported to the Charitable Fund Committee, which identify the source and proposed application of the bequest, along with any updates on notified legacies which have not yet been received.
During the first lockdown, members of the public and businesses donated gifts in kind for the health and wellbeing of staff. Where these donations were immediately distributed to and consumed by staff and patients, they have not been included in the accounts although disclosure has been made in both the annual report and the accounts.
The generosity of all those who made a donation is greatly appreciated. An analysis of income follows:
## Sources of Income
||**2020/21**
**£**|**2019/20**
**£**|
|---|---|---|
|Investment return
Donations
Legacies
Bank Interest|37,425
371,214
42,293
-|46,372
499,235
132,525
3,224|
|Total|450,932|681,356|
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Sherwood Forest Hospitals General Charitable Fund
Annual Report and Accounts for the Year Ended 31 March 2021
## Analysis of Expenditure
||**2020/21**
**£**|**2019/20**
**£**|
|---|---|---|
|Staff Education and Welfare
Purchase of New Equipment
New Building and Refurbishment
Patient Education and Welfare
RaisingFunds|17,795
77,017
-30,846
194,862
25,839|14,211
585,935
0
222,004
20,069|
|Total|284,667|842,220|
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Sherwood Forest Hospitals General Charitable Fund
Annual Report and Accounts for the Year Ended 31 March 2021
## **Grant Making Policy**
Grants are made from the charity’s unrestricted and restricted income funds. These funds comprise four elements:
- **The General Fund** , which is constituted of funds received by the charity with no particular preference expressed by donors. Applications to this fund can be from any staff member of the Trust. Based on their knowledge of the Trust the fund managers and Chief Financial Officer agree expenditure based on the over-riding principle of providing value for money. Grants are targeted on projects in areas of the Trust which do not have available designated funds to pay for them.
- **Designated (Earmarked) Funds,** which contain donations where the donor nominated a particular part of the hospital or activity at the time their donation was made. Whilst their nomination is non-binding on the Trustee, the designated funds reflect these nominations and are overseen by fund managers who can make recommendations on how to spend the money within their designated area.
- **Endowment Funds - Benefit of the Children’s Fund.** This fund comprises solely the income derived from the permanent capital endowment and all expenditure relates solely to the Children’s Unit at King’s Mill Hospital. This fund is overseen by a fund manager who can make recommendations on how to spend the money. These funds can be spent at any time.
- **Restricted Income Funds,** which comprise donations relating to specific fundraising appeals and legacies where a restriction on use has been placed on the funds.
## **Reserves Policy**
Individual budget holders are requested to submit an annual forecast to management setting out how funds are to be spent. Management regularly monitor actual expenditure against these plans and take action in order to ensure that funds are spent in a timely manner and in accordance with donors’ wishes.
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Sherwood Forest Hospitals General Charitable Fund
Annual Report and Accounts for the Year Ended 31 March 2021
The charity’s reserves policy takes account of both an expendable endowment fund, which is available to spend at the discretion of the Trustee, and unrestricted income funds including designated funds. By taking a broad definition, and by ensuring that fund managers administer their funds within the available allocation, the requirement for wholly unrestricted reserve balances is minimised. The aim of the Trustee is to maintain a working cash balance of £150k, which is the level considered necessary to meet day to day commitments and to cover any potential unforeseen situations, with any excess balance subject to regular review and reporting to the Charitable Funds Committee.
Where it becomes apparent that excessive balances are being held, income and expenditure trends are reviewed, and if appropriate excessive balances are placed on investment following advice from our investment advisors.
The year-end, fund balances of £1.27m equate to approximately twenty four months of expenditure based on an average year’s requests, which is considered reasonable based on current income levels.
At the year-end cash balances of £766k were held (£666k in 2019/20) primarily due to the fundraising relating to the Gamma Camera. Payment was made following installation in quarter 1 of 2021/22. Balances will continue to be monitored and reported in 2021/22 as appropriate.
The Trustee intends to maintain the total funds invested at its current level in the short term and use the income generated from these investments to further the charity’s objects, as this will mitigate significant fluctuations in the level of donations. The Trustee continues to review balances in order to ensure that they are utilised in an effective and timely manner.
## **NHS Charities Together**
In year the charity received 4 grants totalling £122.6k from NHS Charities for staff and patients welfare due to the impact of the Covid 19 pandemic.
## **A Review of our Finances, Achievements and Performance**
The net assets of the Charitable Funds as at 31 March 2021 were £1.27 million (2019: £0.94 million). Overall net assets increased by £325k (£283k decrease in 2019/20).
Excluding the unrealised gain, underlying balances increased by £166k (£161k decrease in 2019/20), reflecting the Trustee’s on-going commitment to utilising donations in a timely manner. This increase reflects the reduced expenditure in year due to the additional capital available as a consequence of Covid 19 and the reduced availability of training courses, which reduced in year spend.
The charity continues to rely on donations and legacies and investment income as the main sources of income.
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Sherwood Forest Hospitals General Charitable Fund
Annual Report and Accounts for the Year Ended 31 March 2021
Donations of £372k were received in 2020/21 (£500k in 2019/20) and the Trustee continues to be extremely grateful for all legacies received.
The total charitable expenditure on direct charitable activity was £258k (£821k in 2019/20 due to the recognition of the Gamma camera creditor/commitment). Sherwood Forest Hospitals NHS Foundation Trust is the main beneficiary for all expenditure incurred.
## _Purchase of new equipment and building and refurbishment_
The total spend on providing new equipment of £77k (£585k in 2019/20) represents a vital and valuable contribution to enhancing the provision of clinical care, and included tonometers and numerous smaller purchases which were for less than £10k individually. This is a significant reduction on normal expenditure trends and reflects the additional capital expenditure incurred by the Trust in year on equipment due to the impact of Covid 19.
## _Staff Education and Welfare_
The charity contributed £18k (£14k in 2019/20) towards the provision of staff education and training for staff undertaking further professional education and training.
The charity remains committed to funding continued professional education and training where insufficient resources exist within Trust revenue funding streams.
## _Patient education and welfare_
Although a significant amount of expenditure £195k (£222k in 2019/20) has been charged under this heading, of this £60k related to items of furniture and £23k for I.T equipment. The largest individual purchase related to the purchase of RITA software £16k (Reminiscence, Interactive, Therapeutic, Activities) to improve patient wellbeing.
## _Performance management_
The charity has no employees and so relies upon its partner the NHS Foundation Trust to review the appropriateness of requests for equipment, training and building
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Sherwood Forest Hospitals General Charitable Fund
Annual Report and Accounts for the Year Ended 31 March 2021
related work. For equipment purchases funded by the charity the applicant must advise what difference the proposal will make and what benefit it will provide, and it is the Trustee policy that recurring revenue costs will not be funded.
As in previous years all medical items were also approved by the Equipment Committee, to confirm need and appropriateness. All significant expenditure incurred is reported to the Charitable Funds Committee to review for appropriateness.
Expenditure requests require the further approval of the Chief Financial Officer or the Chief Executive, for all expenditure from general purpose funds and for all expenditure over £15k from restricted purpose funds, before expenditure can be incurred.
## **Investments**
The funds of the charity are invested solely with a view to obtaining a higher than average overall return on its investment.
At the end of the year investments valued at £1.14m were held compared to a historic purchase cost of £1.10m and a net gain of £159k was recognised in the accounts (£123k loss in 2019/20). The gain has reversed the loss of 2019/20 however, stock markets still remain volatile.
The corporate trustee continues to consider its exposure to the fluctuations in the value of its equity based investment, and received quarterly updates from its external fund advisors on current performance and forecast market trends.
The Trustee has taken a longer term approach to investments and it is expected that values will increase over time and regular discussions are held with the Trust’s investment advisors regarding the stock market and potential movements and risks.
The charity has an investment policy that is reviewed and approved by the Charitable Funds Committee on an annual basis. The policy requires that all monies apart from working capital and capital in perpetuity be invested to maximise the overall return consistent with the degree of risk acceptable to the corporate trustee.
In line with the ethos of promoting patient care, the corporate trustee attempts to ensure that all investments are ethically and environmentally sound and are not opposed to the “purpose” of the charity. The performance of the investments are continuously monitored and reported on a quarterly basis.
## **The Charities Act (Protection and Social Investment) Act 2016**
Details of our processes and controls relating to the above legislation are detailed as follows:
Our approach to fundraising is to ensure that any direct fundraising expenditure incurred will maximise a return on investment whilst maintaining excellent
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Sherwood Forest Hospitals General Charitable Fund
Annual Report and Accounts for the Year Ended 31 March 2021
relationships with supporters, reflecting best practice within the sector and protecting the vulnerable. We have not employed any fundraisers in year.
We are not a member of any Fundraising Regulations Standard Board; however, we maintain internal policies and procedures to ensure appropriate governance on any external fundraising undertaken in the Charity’s name.
Fundraising activities are monitored by the Community Involvement Team and Charitable Fund Committee made up of trustees, which reports to the Board of Trustees.
No complaints have been received or notified in the year. Any complaints notified or received would be managed by the community involvement manager and lessons learnt reported via the Charitable Fund committee.
The Charity does not employ direct fundraisers or external fundraising companies, it does however monitor itself in line with Sherwood Forest Hospitals NHS Foundation Trust policies, such as Information Governance, Safeguarding and Inclusivity and Diversity, in order to protect vulnerable people and others from unreasonable intrusion on a person's privacy, unreasonably persistent approaches or undue pressure to give, in the course of or in connection with fundraising for the charity **.**
## **Our relationship with the wider community**
The ability of SFH Charities to continue its vital support for Sherwood Forest Hospitals NHS Foundation Trust is dependent on its ability to maintain and increase donations from the general public. SFH Charities also continues to forge strong relationships with members of staff of the Trust without whose co-operation the ability to make an effective contribution would be much diminished.
## **Volunteers**
The trustees would like to pay tribute to:
- Our volunteers for their time, support, and commitment;
- The members of staff of SFH who give of their time out of hours in support of the work on the committees, in developing ideas for working with us to identify how we can help enhance care; and
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Sherwood Forest Hospitals General Charitable Fund
Annual Report and Accounts for the Year Ended 31 March 2021
- Our fundraisers who do so much to encourage others to enrich the lives of others through donations and fundraising activities.
## **Our Future Plans**
Mindful of the changing NHS, the future direction of the charity will be shaped by the reconfiguration of services and the need to redesign patient care to meet the needs of the future, in line with the Integrated Care system plan for more integrated working arrangements between organisations. Income and expenditure plans will be the subject of continual review to ensure that future needs are prioritised and utilised in line with the new service delivery strategy.
Funds and fund structure will continue to be reviewed and refined to ensure appropriate utilisation, whilst retaining appropriate specialty funds as required. This will make the funds more readily manageable and accessible.
The review of achievements, performance and finances should be seen in the context of the Trustee vision to assist the Trust to help its hospitals develop and provide world-class patient centred care.
Another key area remains our commitment to embed the fundraising and publications strategies, and the creation of more cohesive links and relationships with our fundraising partners.
## **Big Thank You**
On behalf of the staff and patients who have benefited from improved services due to donations and legacies, the corporate trustee would like to thank all donors and volunteers and corporate partners for their generous support over the past year. There is no doubt that patients’ experiences are greatly enhanced by items such as equipment purchased with charitable funds.
The Trustee looks forward to the coming year and the challenges and opportunities it may bring and hopes it will be as successful as this and previous years in continuing to enhance the welfare of both patients and staff.
If you need any advice on how to support our charitable funds, please contact the Community Involvement Department on 01623 672371.
Signed:
Richard Mills Chief Financial Officer on behalf of the Corporate Trustee 4 November 2021
**King’s Mill Hospital** Mansfield Road Sutton in Ashfield Nottinghamshire NG17 4JL
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Sherwood Forest Hospitals General Charitable Fund
Annual Report and Accounts for the Year Ended 31 March 2021
## **Statement of Trustee’s responsibilities in respect of the Trustees' annual report and accounts**
The trustees are responsible for preparing the trustees' report and the financial statements in accordance with 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).
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 the incoming resources and application of resources, including the net income or expenditure, of the charity for the year. In preparing those financial statements the trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and accounting estimates that are reasonable and prudent; state whether applicable accounting standards and statements of recommended practice 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 in operation.
The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and which 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 constitution. The trustees 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 trustees are responsible for the maintenance and integrity of the corporate 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.
Approved by the trustee and signed on its behalf by
Signed: Date: 4 November 2021 Claire Ward (Chair) Signed: Date: 4 November 2021 Richard Mills (Chief Financial Officer)
18
Sherwood Forest Hospitals General Charitable Fund
Annual Report and Accounts for the Year Ended 31 March 2021
## **Independent auditors' report**
## **To the trustees of Sherwood Forest Hospitals General Charitable Fund**
## **Opinion**
We have audited the financial statements of Sherwood Forest Hospitals General Charitable Fund (the 'charity') for the year ended 31 March 2021 which comprise the statement of financial activities, balance sheet, statement of cash flows, and the related notes to the financial statements, including a summary of significant accounting policies. 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).
In our opinion, the financial statements:
- give a true and fair view of the state of the charity's affairs as at 31 March 2021 and of its income and expenditure for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Charities Act 2011.
## **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 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 trustees’ 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 trustees with respect to going concern are described in the relevant sections of this report.
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Sherwood Forest Hospitals General Charitable Fund
Annual Report and Accounts for the Year Ended 31 March 2021
## **Other information**
The trustees are responsible for the other information. The other information comprises the information included in the annual report other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
## **Matters on which we are required to report by exception**
In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ report. We have nothing to report in respect of the following matters in relation to which the Charities Act 2011 requires us to report to you if, in our opinion:
- sufficient accounting records have not been kept;
- the financial statements are not in agreement with the accounting records and returns; or
- we have not obtained all the information and explanations necessary for the purposes of our audit.
## **Responsibilities of the trustees**
As explained more fully in the trustees’ responsibilities statement set out in the trustees’ report, the trustees are 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 they determine 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 trustees are 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 trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.
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Sherwood Forest Hospitals General Charitable Fund
Annual Report and Accounts for the Year Ended 31 March 2021
## **Our responsibilities for the audit of the financial statements**
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
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 procedures we carried out and the extent to which they are capable of detecting irregularities, including fraud, are detailed below:
(1) We obtained an understanding of the legal and regulatory framework that the charity operates in, and assessed the risk of non-compliance with applicable laws and regulations. Throughout the audit, we remained alert to possible indications of non-compliance.
(2) We reviewed the charity’s policies and procedures in relation to:
- Identifying, evaluating and complying with laws and regulations, and whether they were aware of any instances of non-compliance;
- Detecting and responding to the risk of fraud, and whether they were aware of any actual, suspected or alleged fraud; and
- Designing and implementing internal controls to mitigate the risk of noncompliance with laws and regulations, including fraud.
(3) We inspected the minutes of trustee meetings.
(4) We enquired about any non-routine communication with regulators and reviewed any reports made to them.
(5) We reviewed the financial statement disclosures and assessed their compliance with applicable laws and regulations.
(6) We performed analytical procedures to identify any unusual or unexpected transactions or balances that may indicate a risk of material fraud or error.
(7) We assessed the risk of fraud through management override of controls and carried out procedures to address this risk. Our procedures included:
- Testing the appropriateness of journal entries;
- Assessing judgements and accounting estimates for potential bias;
- Reviewing related party transactions; and
- Testing transactions that are unusual or outside the normal course of business.
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Sherwood Forest Hospitals General Charitable Fund
Annual Report and Accounts for the Year Ended 31 March 2021
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. Irregularities that arise due to fraud can be even harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
## **Use of our report**
This report is made solely to the charity's trustees, as a body, in accordance with section 144 of the Charities Act 2011 and the regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditorʼs 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 charityʼs trustees as a body, for our audit work, for this report, or for the opinions we have formed.
Date: 4 November 2021
Godfrey Wilson Limited Chartered accountants and statutory auditors 5th Floor Mariner House 62 Prince Street Bristol BS1 4QD
22
Sherwood Forest Hospitals General Charitable Fund
Annual Report and Accounts for the Year Ended 31 March 2021
## **Statement of Financial Activities for the year ended 31 March 2021**
|**Note**
**Income from:**
Donations
2
Legacies
2
Income from Investments
12
**Total income**
**Expenditure on:**
Raising Funds
_Charitable activities:_
4
Purchase of New Equipment
New Building and Refurbishment
Staff Education and Welfare
Patient Education and Welfare
**Total expenditure**
Net gains on investments
11
**Net income**
Fund transfers
**Net movement in funds**
_Reconciliation of funds_
Total funds brought forward
**Total funds carried forward**|Unrestricted
Funds
£000
187
42
37
**266**
(26)
(76)
32
14
(137)
**(193)**
159
232
38
**270**
778
**1,048**|Restricted
Endowment
**Total at 31**
Funds
Funds
**March 2021**
£000
£000
**£000**
185
-
372
-
-
42
-
-
37
**185**
**-**
**451**
-
-
(26)
-
(76)
(1)
-
31
(32)
-
(18)
(59)
-
(196)
**(92)**
**-**
**(285)**
-
-
159
93
-
325
(38)
-
-
**55**
**-**
**325**
137
28
943
**192**
**28**
**1,268**|Restricted
Endowment
**Total at 31**
Funds
Funds
**March 2021**
£000
£000
**£000**
185
-
372
-
-
42
-
-
37
**185**
**-**
**451**
-
-
(26)
-
(76)
(1)
-
31
(32)
-
(18)
(59)
-
(196)
**(92)**
**-**
**(285)**
-
-
159
93
-
325
(38)
-
-
**55**
**-**
**325**
137
28
943
**192**
**28**
**1,268**|
|---|---|---|---|
||||**451**|
||||(26)
(76)
31
(18)
(196)|
||||**(285)**|
||||159|
||||325
-|
||||**325**
943|
||||**1,268**|
|||||
All results derive from continuing activities.
All gains and losses recognised in the year are included in the Statement of Financial Activities. Movements in funds are disclosed in note 19 to the accounts.
The accompanying notes form part of the financial statements.
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Sherwood Forest Hospitals General Charitable Fund
Annual Report and Accounts for the Year Ended 31 March 2021
## **Prior year comparatives**
## **Statement of Financial Activities for the year ended 31 March 2020**
|**Note**
**Income from:**
Donations
2
Legacies
2
Income from Investments
12
**Total income**
**Expenditure on:**
Raising Funds
_Charitable activities:_
4
Purchase of New Equipment
New Building and Refurbishment
Staff Education and Welfare
Patient Education and Welfare
**Total expenditure**
Net (losses) on investments
11
**Net income / (expenditure)**
Transfers between funds
**Net movement in funds**
_Reconciliation of funds_
Total funds brought forward
**Total funds carried forward**|Unrestricted
Restricted
Endowment
**Total at 31**
Funds
Funds
Funds
**March 2020**
£000
£000
£000
**£000**
309
191
-
500
132
-
-
132
50
-
-
50
**491**
**191**
**-**
**682**
(21)
-
-
(21)
(81)
(504)
-
(585)
(10)
10
-
-
(14)
-
-
(14)
(202)
(20)
-
(222)
**(328)**
**(514)**
**-**
**(842)**
(123)
-
-
(123)
40
(323)
-
(283)
(16)
16
-
-
**24**
**(307)**
**-**
**(283)**
754
444
28
1,226
**778**
**137**
**28**
**943**|
|---|---|
24
## Sherwood Forest Hospitals General Charitable Fund
Annual Report and Accounts for the Year Ended 31 March 2021
|**Balance Sheet as at 31 March 2021**
**Note**
_Fixed assets:_
Investments
11
**Total Fixed Assets**
_Current assets:_
Debtors
13
Cash and cash equivalents
16
**Total Current Assets**
_Liabilities:_
Creditors: amounts falling due within one
year
14
**Net current assets**
**Total net assets**
**The funds of the charity:**
19
Endowment funds
Restricted income funds
Unrestricted income funds:
**Total charity funds**|Unrestricted
Funds
£000
1,141
**1,141**
1
26
**27**
(120)
**(93)**
**1,048**
-
-
1,048
**1,048**|Restricted
Funds
£000
4
**4**
-
712
**712**
(524)
**188**
**192**
-
192
-
**192**|Endowment
Funds
£000
-
**-**
-
28
**28**
-
**28**
**28**
28
-
-
**28**|**Total**
**Funds**
**2021**
**£000**
1,145|
|---|---|---|---|---|
|||||**1,145**|
|||||1
766|
|||||**767**
(644)|
|||||**123**|
||||||
|||||**1,268**|
|||||28
192
1,048|
|||||**1,268**|
||||||
The notes on page 28 to 40 form part of these accounts.
Signed: Claire Ward (Chairman) Date: 4 November 2021
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Sherwood Forest Hospitals General Charitable Fund
Annual Report and Accounts for the Year Ended 31 March 2021
## **Prior year comparatives**
## **Balance Sheet as at 31 March 2020**
|**Note**
_Fixed assets:_
Investments
11
**Total Fixed Assets**
_Current assets:_
Debtors
13
Cash and cash equivalents
16
**Total Current Assets**
_Liabilities:_
Creditors: amounts falling due within one
year
14
**Net current assets (liabilities)**
**Total net assets**
**The funds of the charity:**
19
Endowment funds
Restricted income funds
Unrestricted income funds:
Legacy Holding Fund
**Total charity funds**|Unrestricted
Funds
£000
977
**977**
42
(6)
**36**
(235)
**(199)**
**778**
-
-
743
35
**778**|Restricted
Funds
£000
9
**9**
-
644
**644**
(516)
**128**
**137**
-
137
-
-
**137**|Endowment
Funds
£000
-
**-**
-
28
**28**
-
**28**
**28**
28
-
-
-
**28**|**Total**
**Funds**
**2020**
**£000**
986|
|---|---|---|---|---|
|||||**986**|
|||||42
666|
|||||**708**
(751)|
|||||**(43)**|
||||||
|||||**943**|
|||||28
137
743
35|
|||||**943**|
26
## Sherwood Forest Hospitals General Charitable Fund
Annual Report and Accounts for the Year Ended 31 March 2021
**Cash Flow**
|**Cash Flow**|**Cash Flow**|||
|---|---|---|---|
|**Note**||**Total funds**
**2020-21**|**Total funds**
**2019-20**|
|||||
|**Cash flows from operating activities:**
**Net cash provided by (used in) operating activities**
17
**Cash flows from investing activities:**
Dividends, interest and rents from investments
12
Proceeds from the sale of investments
11
Purchase of investments
11
**Net cash provided by investing activities**
**Change in cash and cash equivalents in the reporting period**
**Cash and cash equivalents at the beginning of the reporting period**
Change in cash and cash equivalents due to exchange rate movements||53
37
362
(352)
47
100
666|(32)|
||||50
220
(213)|
||||57
25
641|
|||||
|**Cash and cash equivalents at the end of the reporting period**
16||**766**|**666**|
|||||
|||||
|||||
The charity has not provided an analysis of changes in net debt as it does not have any long term financing arrangements.
27
Sherwood Forest Hospitals General Charitable Fund
Annual Report and Accounts for the Year Ended 31 March 2021
## **Accounting Policies**
## **1.1. Basis of preparation**
The financial statements have been prepared under the historic cost convention, with the exception of investments which are included at fair value. The financial statements have 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 applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019) and the Charities Act 2011 and UK Generally Accepted Practice as it applies from 1 January 2015.
SFH CF meets the definition of a Public Benefit Entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.
The accounts have been prepared on the assumption that the charity is able to continue as a going concern. However, the COVID-19 pandemic has had a profound impact on the global economy, and has in turn affected the charity. The trustees have considered the impact of this issue on the charity’s current and future financial position. The charity has £1.05m of unrestricted funds and net current assets of £1.27m, and receives regular advice from our investment advisors relating to financial markets and the risk is appropriately recorded within the Charity risk register.
Allowing for the above the trustees consider that there are no material uncertainties about the Charity's ability to continue as a going concern. An unrestricted reserve is maintained to cover routine working capital requirements, and approved commitments are immaterial to the overall balance of funds held.
In future years, the key risks are a fall in income from donations or investment income but the trustees have arrangements in place to mitigate those risks (see the risk management and reserves sections of the annual report for more information).
## **1.2. Funds structure**
Where there is a legal restriction on the purpose to which a fund may be put, the fund is classified either as:
- A restricted fund; or
- An endowment fund.
Restricted funds are those where the donor has provided for the donation to be spent in furtherance of a specified charitable purpose.
Endowment funds arise when the donor has expressly provided that the gift is to be invested and only the income of the fund may be spent. These funds are sub -analysed between those where the trustees have the discretion to spend the capital, expendable endowment, and those where there is no discretion to expend the capital, permanent endowment.
28
Sherwood Forest Hospitals General Charitable Fund
Annual Report and Accounts for the Year Ended 31 March 2021
The charity has two permanent endowment funds, the Benefit of the Children's Fund and Newark Fund and no expendable endowment.
Those funds which are neither endowment nor restricted income funds, are unrestricted income funds which are sub-analysed between designated (earmarked) funds, and wholly unrestricted funds which are wholly at the trustee discretion in line with the Charity's objectives.
The major funds held in each of these categories are disclosed in note 19.
## **1.3. Income**
All income sources are recognised once the charity has entitlement to the resources, it is probable (more likely than not) that the resources will be received and the monetary value of incoming resources can be measured with sufficient reliability.
Where there are` terms or conditions attached to income, particularly grants, then these terms or conditions must be met before the income is recognised as the entitlement condition will not be met until that point. Where terms or conditions have not been met or uncertainty exists as to whether they can be met then the relevant income is not recognised in the year but deferred and shown on the balance sheet as deferred income.
Interest receivable on cash and investments is recognised monthly / quarterly in the period it accrues.
Gifts in kind are not accounted for when they are valued at less than £100 each and will be accepted and then immediately distributed.
Where gifts in kind do not meet these criteria, they are recognised at fair value as stock until they are distributed
## **1.4. Income from legacies**
Legacies are accounted for as incoming resources either upon receipt or where the receipt of the legacy is probable.
## Receipt is probable when:
- Confirmation has been received from the representatives of the estate(s) that probate has been granted or;
- The executors have established that there are sufficient assets in the estate to pay the legacy; and
- All conditions attached to the legacy have been fulfilled or are within the charity’s control.
If there is uncertainty as to the amount of the legacy and it cannot be reliably estimated then the legacy is shown as a contingent asset until all of the conditions for income recognition are met.
## **1.5. Income from endowment funds**
The income received from the invested endowment fund is wholly restricted.
29
Sherwood Forest Hospitals General Charitable Fund
Annual Report and Accounts for the Year Ended 31 March 2021
## **1.6. Expenditure and irrecoverable VAT**
All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to each category of expense shown in the Statement of Financial Activities. Expenditure is recognised when the following criteria are met:
- There is a present legal or constructive obligation resulting from a past event;
- It is more likely than not that a transfer of benefits (usually a cash payment) will be required in settlement; and
- The amount of the obligation can be measured or estimated reliably.
Irrecoverable VAT is charged against the category of resources expended for which it was incurred.
The charity does not make grants to individuals. The total costs of making grants is disclosed on the face of the Statement of Financial Activities. The actual disbursement received by the beneficiaries for each category of charitable activity is disclosed in note 4. All grants are made to the Sherwood Forest Hospitals NHS Foundation Trust and the trustee operates a scheme of delegation, through which all grant funded activity is managed by fund holders responsible for the day to day disbursements on their projects, in accordance with the directions set out by the trustees in charity standing orders and financial instructions.
Grants payable are payments made to related party or third party NHS bodies and nonNHS bodies in the furtherance of the charitable objectives of the funds held on trust, primarily relief of those who are sick. The grants are accounted for on an accruals basis where the conditions for their payment have been met or where the recipient has a reasonable expectation they will receive a grant. Provisions are made where approval has been given by the trustee due to the approval representing a firm intention which is communicated to the recipient.
## **1.7. Allocation of support costs**
Support costs are those costs which do not relate directly to a single activity. These include some staff costs, costs of administration, internal and external audit costs and IT support. Support costs have been apportioned between fundraising costs and charitable activities on an appropriate basis. The analysis of support costs and the bases of apportionment applied are shown in note 5.
## **1.8. Fundraising Costs**
The costs of generating funds are those costs attributable to generating income for the charity, other than those costs incurred in undertaking charitable activities or the costs incurred in undertaking trading activities in furtherance of the charity’s objects. These include:
i) Donations given by patients and their relatives which are forwarded, currently at nil charge by the Trust;
ii) Legacies which are encouraged by leaflets throughout the hospital, the cost of which is immaterial;
iii) Fundraising events; and
iv) Investment management fees.
30
Sherwood Forest Hospitals General Charitable Fund
Annual Report and Accounts for the Year Ended 31 March 2021
## **1.9. Charitable activities**
Costs of charitable activities comprise all costs incurred in the pursuit of the charitable objects of the charity. These costs, where not wholly attributable, are apportioned between the categories of charitable expenditure in addition to the direct costs. The total costs of each category of charitable expenditure include an apportionment of support costs as shown in note 5.
## **1.10. Fixed asset investments**
Investments are a form of basic financial instrument. Fixed asset investments are initially recognised at their transaction value and are subsequently measured at their fair value (market value) as at the balance sheet date. The statement of financial activities includes the net gains and losses arising on revaluation and disposals throughout the year. Quoted stocks and shares are included in the balance sheet at the current market value quoted by the investment analyst, excluding dividend. The main form of financial risk faced by the charity is that of volatility in equity markets and investment markets due to wider economic conditions, the attitude of investors to investment risk, and changes in sentiment concerning equities and within particular sectors or sub sectors.
## **1.11. Debtors**
Debtors are amounts owed to the charity. They are measured on the basis of their recoverable amount.
## **1.12. Cash and cash equivalents**
Cash at bank and in hand is held to meet the day to day running costs of the charity as they fall due. Cash equivalents are short term, highly liquid investments, usually in 90 day notice interest bearing savings accounts.
## **1.13. Creditors**
Creditors are amounts owed by the charity. They are measured at the amount that the charity expects to have to pay to settle the debt.
Amounts which are owed in more than a year are shown as long term creditors.
## **1.14. Realised and Unrealised gains and losses**
All gains and losses are taken to the Statement of Financial Activities as they arise. Realised gains and losses on investments are calculated as the difference between sales proceeds and opening carrying value (purchase date if later). Unrealised gains and losses are calculated as the difference between the market value at the year end and opening carrying value (or purchase date if later).
## **1.15. Related party transactions**
The Sherwood Forest Hospitals NHS Foundation Trust (SFH FT) is the sole beneficiary of the charity. The charity has reimbursed the SFH FT for approved expenditure made on behalf of the charity. These reimbursements are included in the analysis of expenditure as detailed in note 4. During the year none of the
31
Sherwood Forest Hospitals General Charitable Fund
Annual Report and Accounts for the Year Ended 31 March 2021
members of the SFH FT Board of Directors or Senior Sherwood Forest Hospitals NHS Foundation Trust staff or parties related to them were beneficiaries of the charity.
None of the trustees or members of the SFH FT board or parties related to them has undertaken any transactions with the Charitable Trust or received any benefit from the charity in payment or kind. The trustees received no honoraria or emoluments in the year.
The SFH FT makes a number of clerical and transaction services available to the charity, by agreement with the trustees. These include administrative services in support of the charity’s grant making activities which are included within support costs as detailed in note 5.
## **1.16. Accounting Estimates**
In the application of the charity's accounting policies, management is required to make judgements and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. These estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from those estimates. The estimates and underlying assumptions are continually reviewed. Revisions to accounting estimates are recognised in the period in which the estimate is revised and if the revision affects only that year, or in the year of the revision and future years if the revision affects both current and future years.
Estimates included in this year's financial statements are:
- Accrued expenditure based on the best estimate known at the time of the financial statements;
- Apportionment of support costs to charitable activities;
- Assessment of market value of investments; and
- Value of commitments and the expected timing of their cash flows.
32
Sherwood Forest Hospitals General Charitable Fund
Annual Report and Accounts for the Year Ended 31 March 2021
## **NOTES TO THE ACCOUNTS**
|**2.0. Income from donations and legacies**
Donations from individuals
Voluntary income: legacies
**Total**
Donations from individuals
Voluntary income: legacies
Legacy Holding Fund
**Total**|**Unrestricted**
**funds**
£000
187
42
**229**
**Unrestricted**
**funds**
£000
309
97
35
**441**|**Restricted**
**funds**
£000
185
-
**185**
**Restricted**
**funds**
£000
191
-
-
**191**|**Total**
**2021**
**£000**
372
42|
|---|---|---|---|
||||**414**|
||||**Total**
**2020**
**£000**
500
97
35|
||||**632**|
Donations from individuals are gifts from members of the public, relatives of patients and staff and aslo includes funds granted from NHS Charities Together.
## **3.0. Analysis of income from other trading activities**
There were no incoming resources from other trading activities (2019/20 £nil).
## **4.0. Analysis of charitable expenditure**
The charity did not undertake any direct charitable activities on its own account during the year. All of the charitable expenditure was in the form of grant funding.
Grants were approved in favour of the partner organisations SFH FT to carry out activities that will benefit NHS patients and their families.
|Purchase of New Equipment
New Building and Refurbishment
Staff Education and Welfare
Patient Education and Welfare
**Total**|**Grant funded**
**activity**
**£000**
64
(26)
15
163
**216**|**Support**
**costs**
**£000**
12
(5)
3
32
**42**|**Total**
**2021**
**£000**
76
(31)
18
195|
|---|---|---|---|
||||**258**|
Analysis includes support costs and overheads administration which are disclosed in note 5.
The negative expenditure on New Building and Refurbishment relates to the reversal of committed expenditure not actually utilised.
|**Prio Year Comparators**
Purchase of New Equipment
New Building and Refurbishment
Staff Education and Welfare
Patient Education and Welfare
Total|Grant funded
activity
£000
550
-
13
208
771|Support costs
£000
35
-
1
14
50|Total
2020
£000
585
-
14
222|
|---|---|---|---|
||||821|
|||||
33
## Sherwood Forest Hospitals General Charitable Fund
Annual Report and Accounts for the Year Ended 31 March 2021
## **5.0. Allocation of support costs and overheads**
Support and overhead costs are allocated between fundraising activities and charitable activities. Governance costs are those support costs which relate to the strategic and day to day management of a charity.
The bases of allocation used are as follows:
- Direct allocation: where a cost is wholly attributable to a particular activity.
- Expenditure: this is a proportion based on the average fund balance.
|Salary recharge
External Audit
Governance
Computer Expenses
Investment Management fees
**General Administration Overheads**|**Raising**
**funds**
**Charitable**
**Activities**
**Total**
**2021**
**£000**
**£000**
**£000**
12 26 38
- 6 6
4
9
13
- - -
10 -
10
**26 41 67**|Raising
funds
Charitable
Activities
Total
2020
£000
£000
£000
11 26 37
- 6 6
4
10 14
Based on fundraising /
charitable activities
percentage costs
- 1 1
6 6
12
Based on fundraising /
charitable activities
**21 49 70**
**Basis of apportionment**
Expenditure
Expenditure
Expenditure|
|---|---|---|
34
Sherwood Forest Hospitals General Charitable Fund
Annual Report and Accounts for the Year Ended 31 March 2021
## **6.0. Trustees' remuneration, benefits and expenses**
The charity’s trustees are corporate trustees and receive no remuneration for the work that they undertake as trustees.
## **7.0. Analysis of staff costs**
No emoluments were paid to employees in 2020/21 (2019/20 £nil), however there was a recharge of £51k in year relating to SFH staff as disclosed in note 5. (2019/20 £51k).
## **8.0. Auditors’ remuneration**
Auditors’ remuneration fee of £6,420 including VAT was charged in 2020/21 (2019/20 £6,240). No other additional work was undertaken (2019/20 £nil).
## **9.0. Analysis of grants**
||**Total amount paid**|
|---|---|
|**Institution receiving grant**
**support:**|
**2020/21**
2019/20
**£000**
£000
216
771|
|||
|SFH FT||
|**Total**|**216**
771|
## **10.0. Role of volunteers**
Like all charities, the SFH Charity is reliant on a team of volunteers for our smooth running. Our volunteers perform 2 roles:
Fund advisors – there are about 50 SFH FT staff who manage how the charity’s designated funds should be spent. These funds are designated (or earmarked) by the trustees to be spent for a particular purpose or in a particular ward or department. Each fund advisor has delegated powers to spend the designated funds that they manage in accordance with the trustee’s wishes. The trustees determine what each fund can be spent on and the amount that can be spent in a year.
Fund raisers – a team of hospital volunteers actively fundraise and support the charity by holding stalls, coffee mornings, tombola’s and raffles. The team work in partnership with individuals, groups and businesses assisting at events to raise funds for specific appeals and trust funds.
In accordance with the SORP, due to the absence of any reliable measurement basis, the contribution of these volunteers is not recognised in the accounts.
35
Sherwood Forest Hospitals General Charitable Fund
Annual Report and Accounts for the Year Ended 31 March 2021
**11.0. Fixed asset investments:**
|**Movements in fixed asset investment**||**2021**
**£000**|2020
£000|
|---|---|---|---|
|Market value at 1 April
Less: Disposals proceeds
Add: Additions to investment at cost
Less: Realised loss on disposal
Add Net gain / (loss) on revaluation||986
(362)
352
(34)
203|1,109
(220)
213
7
(123)|
|Market value at 31 March||**1,145**|986|
|||||
|Historic purchase cost at 31 March||**1,100**|1,100|
|**Fixed asset investment by Type**
Investments in a Common Deposit Fund or
Common Investment Fund|Held
in UK
£000
1,145
1,145|**2021**
**Total**
**£000**
1,145
**1,145**|2020
Total
£000
986|
||||986|
All investments are carried at their fair value.
The significance of financial instruments to the on-going financial sustainability of SFH is considered in the risk analysis section of the trustees’ annual report.
The main risk from financial instruments lies in the combination of uncertain investment markets and volatility in income (or yield).
**Interest Rate Risk.** The combination of market uncertainty and continued asset purchasing programmes has anchored bond yields at abnormally low levels. This gives rise to a significant downside risk of a fall in capital values when interest rates return to normal levels. Furthermore, persistent demand for high quality corporate bond and government stock continues to keep yields low.
**Default Risk.** The majority of the fixed interest holdings in the portfolio are issued by creditors categorised as ‘High Grade’. These issuers carry relatively low credit risk and the default rate on investment grade fixed interest securities due to corporate failures has so far been low.
**Liquidity Risk** . Liquidity risk within the portfolio is anticipated to be low as all assets are traded and the commitment to intervention by central banks and market regulators has continued to provide for orderly trading in most markets. Nearly all the Trust’s investments are traded in markets with good liquidity and high trading volumes and can be sold to provide liquidity within a week (with the exception of two holdings in Commercial Property). The only asset class which has historically exhibited poor liquidity is Commercial Property. The Trust has investments in two Charity Property Funds which were both gated for six months during 2020, during a period of extreme volatility, triggered by the coronavirus pandemic. The two funds represented 8.5% of the Trust’s investments at the time. This suspension was for regulatory reasons rather than liquidity reasons and the funds continued to pay a good level of income while temporarily gated. The funds are not currently gated. The Trust has no material investment holdings in markets subject to exchange controls or trading restrictions.
The Trust does not make use of derivatives and similar complex financial instruments as it takes the view that investments are held for their longer term yield total return and historic studies of quoted financial instruments have shown that volatility in any particular 5 year period will normally be corrected.
**Currency Risk** . Although the Trust does not ordinarily take stand-alone currency positions, the investment process takes into account currency forecasts when creating the asset allocation framework. Within overseas fixed interest, hedged units are purchased where available to negative currency risk in an already low-yielding asset class.
**Concentration Risk** . Concentration risk is minimised through broad diversification of investments at an asset class, geographic and sector level.
The Trust manages these investment risks by retaining expert advisors and operating an investment policy that provides for a high degree of diversification of holdings within investment asset classes
36
Sherwood Forest Hospitals General Charitable Fund
Annual Report and Accounts for the Year Ended 31 March 2021
|**12.0. Gross Investment Income**|**Unrestricted**
**funds**|**Restricted**
**funds**
**2021**
2020
**Total**
Total
**£000**
£000|
|---|---|---|
|Investments in a Common Deposit Fund or Common
Investment Fund
Short term investments and cash on deposit|37
-|-
**37**
47
-
**-**
3|
|**Total**|37|-
**37**
50|
|All investments are held in the UK.
**13.0. Analysis of Debtors**
Amounts falling due within one year:|**2021**
**£000**|2020
£000|
|Accrued income|1|42|
|Total debtors falling due within one year
**Total debtors**
**14.0. Analysis of Liabilities**
There are no debtors falling due after more than one year.|**1**
**1**
**2021**
**£000**|42
42
2020
£000|
|Creditor Amounts falling due within one year:||53
698
751|
|Trade creditors
Accruals|487
157||
|Total creditors falling due within one year|**644**||
|**Total creditors**|**644**|751|
|||2020
£000
986
986|
|**15.0. Financial Instruments at Fair Value**|||
|Financial assets measured at fair value
Relates to stock market investments.|**2021**||
||**£000**||
||1,145||
||**1,145**||
||||
37
Sherwood Forest Hospitals General Charitable Fund
Annual Report and Accounts for the Year Ended 31 March 2021
|**16.0.**
**Cash and cash equivalents**
Cash in hand|**2021**
**£000**|2020
£000|
|---|---|---|
|Notice deposits (less than 3 months)|766|666|
|**Total cash and cash equivalents**|**766**|666|
The notice deposits are sums held on interest bearing deposit and represent funds held to facilitate cash flow and the fulfilment of obligations to make grant payments. The funds are held on a 90 day notice account and are therefore classified as cash and cash equivalent.
No cash or cash equivalents or current asset investments were held in non-cash investments or outside of the UK.
All of the amounts held on interest bearing deposit are available to spend on charitable activities.
## **17.0. Reconciliation of net income/(expenditure) to net cash flow from operating activities**
||**2021**
**£000**|2020
£000|
|---|---|---|
|**_Net income/(expenditure) for 2020/21 (as per the statement of_**|**325**
(159)
(10)
(37)
41
(107)
**53**||
|**_financial activities)_**||(283)
123
(7)
(50)
11
174
(32)|
|**Adjustments for:**
(Gains)/losses on investments
Notional cash movement on Investments
Dividends, interest and rents from investments
(Increase)/decrease in debtors
Increase/(decrease) in creditors|||
|**_Net cash provided by (used in) operating activities_**|||
|**18.0.**
**Timing of commitments**|**2021**
**£000**|2020
£000|
|Commitments payable in under 1 year|97|622|
|Total cumulative commitments that remain undischarged as at 31
March|**97**|622|
As described in note 9, the charity awards a number of grants in the year. Many grants are awarded and paid out in the same financial year. However, some grants for funding a specific project are multi-year grants paid over a longer period.
As the charity has control over the award and timing of grants there is little uncertainty around these payments.
38
## Sherwood Forest Hospitals General Charitable Fund
Annual Report and Accounts for the Year Ended 31 March 2021
## **19.0. Analysis of charitable funds**
|Medicine
Surgery
**Total Balances**
Urgent and Emergency
**Endowment Funds**
General Fund[7]
Benefit of the Children's Fund[2]
Cancer Appeal[3]
Other
Dementia Appeals[4]
Gamma Camera Appeal[5]
Earmarked Funds[8]
Breast Screening[6]
**Restricted Funds Subtotal**
**Unrestricted and Designated Fun**
Benefit of the Children's Fund[1]
**Endowment Funds Subtotal**
Medical Equipment Legacy Fund[10]
Covid[11]
End of Life[12]
NHS Charities Together[13]
**Restricted Funds**
Womens and Children's
Diagnostics and Outpatients
Legacy Holding Fund[9]|**Balance at**
**31 March**
**2020 c/fwd**
**£000**
28
**28**
9
1
62
5
10
50
-
-
-
**137**
3
99
106
21
289
59
166
35
**778**
**943**
**ds**|Balance
at 1 April
2020
b/fwd
Incoming
resources
Resources
expended Transfers
Gains and
losses
**Balance**
**at 31**
**March**
**2021**
£000
£000
£000
£000
£000
**£000**
28
-
-
-
-
28|
|---|---|---|
|||**28**
**-**
**-**
**-**
**-**
**28**|
|||9
-
-
(5)
-
4
1
2
0
18
-
21
62
-
2
(60)
-
4
5
1
(1)
1
-
6
10
1
-
-
-
11
50
-
-
-
-
50
-
36
(19)
-
-
17
-
22
(6)
8
-
24
-
123
(68)
-
55|
|||**137**
**185**
**(92)**
**(38)**
**-**
**192**|
|||3
62 (85)
27
159
166
99
57 (55)
41
-
142
106
11
2
-
-
119
21
3 (1)
-
-
23
289
77 (38)
-
-
328
59
20 (14)
-
-
65
166
36 (2)
5
-
205
35
-
-
(35)
-
-|
|||**778**
**266**
**(193)**
**38**
**159**
**1,048**|
||||
|||**943**
**451**
**(285)**
**-**
**159**
**1,268**|
[1] / [2]This is a permanent endowment fund where only the income generated by the investment of this capital can be spent. All income generated is transferred to the Benefit of the Children's restricted fund where it must be used for the benefit of the Children's Unit at Kings Mill Hospital.
[3] This fund is currently inactive and permission has been sought from the Charity commission in 2021/22 for it to be transferred to earmarked funds and closed..
[4] This relates to specific appeals that were commenced prior year to enhance Dementia facilities at Kings Mill and Newark Hospitals.
[5] This relates to a specific appeal that commenced in March 2018 to replace the Gamma camera at Kings Mill Hospital.
[6] This relates to a specific appeal that commenced October 2018 to support the new Breast screening service at Newark Hospital.
[7] The **general fund** includes all donations for which a donor has not expressed any preference as to how the funds shall be spent and the unrestricted income accruing to the charity. These funds are applied for any charitable purpose to the benefit of the patients of SFH FT at the absolute discretion of the trustees.
[8] Earmarked funds are reported by Division to aid transparency. A complete breakdown of the individual funds within each heading is available upon written request _**.**_
[9] The fund exists to hold legacies where we have had notification, but not receipt of monies. These funds are held until receipt and then transferred to the relevant fund, in line with the will. Keeping the funds separate ensures we account correctly for the monies, but also that the funds are not expended prior to receipt.
[10] This relates to a specific legacy which can only be utilised on the purchase of medical equipment
[11] Monies specifially donated for staff health and wellbeing
[12] Grant received to aid staff health and Wellbeing
[13] Specific project to enhance facilities for Patient Care
[14] The movement between Dementia and other is due to an expenditure misclassification in 19/20 to ensure the individual balances accurately reflect available funds.
[15] The movement between Cancer and other is due to an expenditure reclassification between divisonal cancer funds and the cancer appeal fund to ensure the individual balances accurately reflect available funds.
39
## Sherwood Forest Hospitals General Charitable Fund
Annual Report and Accounts for the Year Ended 31 March 2021
## **19.0. Analysis of charitable funds**
|Breast Screening[6]
Legacy Holding Fund[9]
Medicine
Surgery
**Total balances**
**Unrestricted and designated funds**
**Endowment funds**
Benefit of the Children's Fund[1]
**Endowment funds subtotal**
**Restricted funds**
Benefit of the Children's Fund[2]
Cancer Appeal[3]
Dementia Appeals[4]
Gamma Camera Appeal
[5]
**Restricted funds subtotal**
**Prior year comparatives**
Medical Equipment Legacy Fund
[10]
General Fund[7]
Earmarked Funds
[8]
Other
Diagnostics and Outpatients
Urgent and Emergency Care
Womens and Children's
Legacy Holding Fund
[9]|Balance at
31 March
2019 c/fwd
£000
28
**28**
9
-
61
306
18
50
**444**
70
55
91
28
265
90
155
-
**754**
**1,226**|Balance
at 1 April
2019
b/fwd
Income Expenditure Transfers
Gains and
losses
**Balance**
**at 31**
**March**
**2020**
£000
£000
£000
£000
£000
**£000**
28
-
-
-
-
28|
|---|---|---|
|||**28**
**-**
**-**
**-**
**-**
**28**|
|||9
-
-
-
-
9
-
1
-
-
-
1
61
1
-
-
-
62
306
164
(486)
21
-
5
18
25
(28)
(5)
-
10
-
-
-
50
50
50
-
-
(50)
-
-|
|||**444**
**191**
**(514)**
**16**
**-**
**137**|
|||70
137 (81)
-
(123)
3
55
197 (137)
(16)
-
99
91
19 (9)
5
-
106
28
1 (8)
-
-
21
265
59 (35)
-
-
289
90
16 (42)
(5)
-
59
155
27 (16)
-
-
166
-
35 -
-
-
35|
|||**754**
**491**
**(328)**
**(16)**
**(123)**
**778**|
||||
|||**1,226**
**682**
**(842)**
**-**
**(123)**
**943**|
## **20.0. Post year-end events**
In line with section 32 of FRS102 the Trustees are not aware of any adjusting or non adjusting events since the close of the accounting period, which would affect the position reported, or the assessment of its going concern basis.
40
consultants | chartered accountants | statutory auditors
Sherwood Forest Hospitals General Charitable Fund Year Ended 31 March 2021
Management Letter
## Contents
|1|Introduction .............................................................................................................................................. 1|
|---|---|
|2|Scope of the Audit................................................................................................................................... 1|
|3|Audit Method & Materiality ................................................................................................................... 2|
|4|Independence & Objectivity .................................................................................................................. 2|
|5|Audit Opinion ........................................................................................................................................... 3|
|6|Significant Aspects of the Entity’s Accounting Practices ................................................................. 3|
|7|Significant Matters Discussed During the Audit ............................................................................... 3|
|8|Significant Difficulties Encountered During the Audit ..................................................................... 3|
|9|Recommendations for Improvements ................................................................................................ 4|
|10|Acknowledgements ................................................................................................................................. 4|
|11|Contact Us ................................................................................................................................................ 4|
|Appendix 1: Recommendations ..................................................................................................................... 5||
|Appendix 2: Audit Adjustments & Unadjusted Errors ............................................................................. 7||
## 1 Introduction
This is our management letter to you following the audit of the financial statements for the year ended 31 March 2021. The management letter is designed to communicate to the trustees the audit approach, the key audit risks, any significant audit issues, the audit adjustments and unadjusted errors (if any), and our recommendations for improvements to systems, controls, and governance processes. We would appreciate it if this report is circulated to the trustees and discussed at a trustees’ meeting.
The contents of this report and appendices are for the attention and information of the trustees only. You may only disclose the contents of this letter and appendices to third parties (such as funders) with our permission and we cannot be held liable for any reliance placed on the contents by third parties.
## 2 Scope of the Audit
The scope of the audit and our responsibilities are set out in our engagement letter dated 24 October 2018.
The objective of the audit work is to enable us to give an opinion as to whether the financial statements show a true and fair view of the results for the year and the state of affairs at the year end. As part of our work we also review whether the financial statements comply with relevant accounting standards. We design audit tests to provide assurance that the charity’s financial statements are free from material error and so that we have a reasonable expectation of detecting material misstatement in the financial statements or accounting records resulting from irregularities and fraud.
Although it is not explicitly stated, an unqualified audit report means that we did gather adequate audit evidence to support the assertions in the financial statements, that we are satisfied that the books and records are in agreement with the financial statements and that we received all the information and explanations we considered necessary for the audit.
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We are also satisfied with the disclosures in the notes to the financial statements. We do not audit the trustees’ annual report, but we do check that this is consistent with the financial statements.
The audit procedures are designed to give us reasonable assurance that the financial statements, taken as a whole, are free of material misstatement. However, it is the responsibility of the trustees to ensure, as far as possible, that accurate and reliable accounting records are maintained and to operate appropriate controls.
## 3 Audit Method & Materiality
We used “substantive testing” – meaning that we verified particular transactions or balances by looking at a sample of invoices and receipts or by tracing from source documents to the final financial statements. We also carried out walk-through tests to evaluate the effectiveness of your systems and controls.
The audit work seeks evidence that the financial statements are materially correct. Small amounts do not affect a reader’s understanding of the financial position. For this audit, the level of materiality we used was £47,000 for the balance sheet and £28,000 for the SoFA. These figures were used only as a guide and were subject to judgemental change depending on the findings during the audit. Materiality is not applied to certain transactions which are always material even when the amount involved is small, such as transactions with trustees.
## 4 Independence & Objectivity
We operate checks to ensure that we continue to act independently. We have enquired whether our staff have a connection to the charity, its staff, or trustees. We are not aware of any connections which would impact on our independence and objectivity as auditors.
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## 5 Audit Opinion
The audit proceeded as planned and according to the agreed timetable. We can confirm that the audit opinion will be unqualified.
Our audit adjustments and unadjusted errors are shown in appendix 1. Trustees should ensure they are satisfied with these.
## 6 Significant Aspects of the Entity’s Accounting
## Practices
Sherwood Forest Hospitals General Charitable Fund complies with all the accounting policies listed in the notes to their financial statements, the Companies Act 2006, the Financial Reporting Standard applicable in the UK and Republic of Ireland FRS 102 and the Charities Statement of Recommended Practice (FRS 102) (effective 1 January 2019). All accounting estimates made by the charity are reasonable. The financial statements contain all the disclosures expected.
## 7 Significant Matters Discussed During the Audit
There were no significant matters discussed during the audit.
## 8 Significant Difficulties Encountered During the Audit
We are pleased to report that we did not encounter any difficulties during the audit.
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## 9 Recommendations for Improvements
As part of our audit work we review the internal systems and controls and the governance processes in operation. In this letter, we report any weaknesses that we identified during the course of our work, and suggest recommendations. Please note this does not constitute a comprehensive review of your systems, it is simply a summary of our observations. Our observations are included in appendix 1. We hope you find the feedback useful and the recommendations practical.
## 10 Acknowledgements
We would like to express our thanks to Michael Powell, Tracy Tasker and all the other staff for all their help with the audit.
## 11 Contact Us
The partner in charge of your audit is Rob Wilson. If you have any questions or feedback about the audit, please do not hesitate to contact us.
Godfrey Wilson Limited 5[th] Floor, Mariner House 62 Prince Street Bristol BS1 4QD
Tel: 0117 971 3445
Email: rob@godfreywilson.co.uk
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## Appendix 1: Recommendations
|**Issue**|**Implication**|**Recommendation**|
|---|---|---|
|**Investments**
The realised gain on investments had been
calculated as the difference between
additions and disposals, instead of using
the realised gain per the investment
portfolio.|The split of gains between unrealised and
realised was not correctly calculated. This
has been adjusted during the course of the
audit.|We recommend that investment gains are
posted on a quarterly basis, in line with
investment reports. These should be
tracked via a separate nominal ledger
account.|
|**Commitments**
A recent proposal for End of Life care
spending has not been accrued in these
accounts, although it had been approved in
principle by the board. It was unclear
whether the spending had actually been
committed at the year end. From a review
of the board minutes, it appears that even
the trustees are unclear as to the current
status of this proposal.|Commitments may not be consistently
accrued in line with the policy, leading to
the
understatement
of
committed
expenditure.|Given that the expenditure had not been
communicated to the recipients of this
funding before the year end, we have
agreed not to accrue this commitment.
However, the charity may need to review
its processes to ensure that all grant
commitments are recognised consistently.|
|**Negative expenditure**
There is a large amount of negative
expenditure in these accounts, due to the
reversal
of
a
number
of
unpaid
commitments from prior years.|While it is correct to reverse these
commitments if they will not be paid or
have expired, the expenditure for the
prior year has effectively been overstated.|
A review of the commitments process may
be required to establish why amounts have
not been spent and to ensure that future
commitments will be utilised in full.|
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|**Issue**|**Implication**|**Recommendation**|
|---|---|---|
|**Support cost allocations**
As discussed above, there is some negative
expenditure in these accounts. As support
costs have been allocated in proportion to
direct costs, the negative expenditure has
been further increased by the allocation of
negative support costs to this activity.|Support costs have been allocated in line
with the charity’s policy, however this may
not be an accurate reflection of support
staff time spent on activities.|As above, we expect that there will be
fewer instances of expenditure reversals in
future years, to avoid similar situations.|
|**Chart of accounts**
We understand the charity has switched
to Harlequin accounting software from
Trojan in 2021/22.|This provides a good opportunity to
review the charity’s chart of accounts and
nominal structure to ensure best practice
reporting.|We recommend aligning the Charitable
Fund chart of accounts to the SORP
wherever possible to ensure income and
expenditure codes map to SoFA headings.|
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## Appendix 2: Audit Adjustments & Unadjusted Errors
## Audit Adjustments
|**Nominal Account**|**Debit**|**Credit**|
|---|---|---|
|C43 Realised gains
C44 Unrealised gains
_Being to reapportion unrealised and realised gains on investment_|34,340.34|(34,340.34)|
|C42 Interest
C07 Donations
_Being to reclassify investment income_|10,279.60|(10,279.60)|
## Unadjusted Errors
|**Nominal Account**|**Debit**|**Credit**|
|---|---|---|
|INVE Investment control
C44 Unrealised gains
_Being the correction of the investment balance_|3,963.57|(3,963.57)|
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