2023-03-31-accounts - South Tees Hospitals Charity And Associated Funds

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SOUTH TEES HOSPITALS CHARITY AND ASSOCIATED FUNDS ANNUAL REPORT & ACCOUNTS

1 April 2022 - 31 March 2023

Principal office:

Charities Office The Murray Building South Tees Hospitals NHS Foundation Trust James Cook University Hospital Marton Road Middlesbrough TS4 3BW

Registered Charity No. 1056061

South Tees Hospitals Charity and Associated Funds Annual Report - 2022/23

Contents	Page
1. Chairman’s Statement	3
2. Aims and Objectives	7
Our Role
Our Mission

Financial Review

	Assets	7
	Income	7
	Expenditure	8
	Investments	9
4.	Structure Governance and Management	10
	Members of the corporate trustee	11
	Key management personnel remuneration	12
	Constitution and powers	12
	Administration	12
	Risk management	12
	Partnership working	13
	Reserves	13
5.	Objectives – Moving Forwards	14
6.	Statement of Directors’ Responsibilities	15
7.	Audit Report	17
8.	Statement of Financial Activities	21
9.	Balance Sheet	22
10.	Statement of Cash Flows	23
11.	Notes to the accounts	24

South Tees Hospitals Charity and Associated Funds Annual Report - 2022/23

1. Chairman’s Statement

I After presenting my first annual charity report for Our Hospitals Charity last year, I am pleased to be able to say that we have had a successful year also in 2022-2023, both in terms of fundraising and delivering some important projects. This is despite the additional economic pressures felt by the public and the falling investment markets. The Charity is still dealing with the increasingly difficult economic aftermath of the coronavirus pandemic but fortunately we have received some significant legacies in the year which will help us to continue to fund our good work. The current cost of living crisis will inevitably be felt by the Charity during the coming year as people will have less disposable income for donations and we can only hope that investment markets will start to recover. However, we are in a healthy position and will continue to monitor the markets and make decisions accordingly to maximise what can be delivered to increase the wellbeing of both staff and patients.

As mentioned, Our Hospitals Charity has had a productive year and this is thanks to our tireless fundraisers, donors, and our numerous corporate supporters. As a result, we have been able to complete some outstanding projects, that will enhance the care our patients and visitors receive, as well as improving the working environment for our staff now and in the future.

We wish to thank all who have supported us during 2022-2023 and look forward to building on the strength of Our Hospitals Charity. We look forward to seeing the benefits in the coming year of the projects that the Charity has funded and also to helping to enhance further, in any way we can, the environment and facilities available in the hospital for our patients, staff and the general public. Some of the highlights from 2022-2023 can be seen below.

Maternity Bereavement Services

Following a very successful fundraising appeal, a bespoke maternity bereavement suite has opened at The James Cook University Hospital.

With an initial target of £60,000 to improve maternity bereavement services, we managed to raise over £104,000 in less than a year – with donations still coming in.

The re-design and re-location of the previous maternity suite, now allows gold standard bereavement care to be delivered to all families who require this service.

The room provides a homely space where parents who have suffered baby loss can meet their baby and spend time making precious memories without feeling like they’re in a hospital environment. It has its own private entrance, so families don’t have to walk past occupied labour rooms, is completely soundproof and features a double bed, an ensuite bathroom, and a small kitchen area.

South Tees Hospitals Charity and Associated Funds Annual Report - 2022/23

We have built lasting relationships with many bereaved families, who continue to fundraise. Feedback from families who have used the new room has been outstanding, and in turn, many are now fundraising in memory of their baby.

Home from home for patients and relatives

Once again, this year we have made improvements to many family rooms throughout our hospitals.

Thanks to the generosity of one of our corporate partners, we were able to transform two of our family rooms in the Spinal Injuries Unit at James Cook. Relatives can now stay close by their loved ones in the calming, non-clinical and therapeutic environment, this has been especially beneficial to those who live out of area.

The Spinal Injuries Unit has also benefitted from a new, specially adapted kitchen, to help patients with their rehabilitation and regaining their independence.

The relatives’ room at East Cleveland Hospital has also been transformed, into a modernised comfortable area to enable families to stay close to their loved ones.

Generous donations and fundraising have enabled us to modernise and update the parents’ flats and family rooms in the Neonatal Unit. We have received some wonderful feedback from countless families who have used these areas and in turn many of them are fundraising for the unit.

We have also created a calm and tranquil family room on paediatric Ward 21, for parents and carers to use during their child’s time in hospital.

South Tees Hospitals Charity and Associated Funds Annual Report - 2022/23

Improving outdoor spaces

We continue to improve many of the outdoor spaces across our hospitals. At the end of August 2022 after raising £115,000 we officially opened our Critical Care Garden, which has benefited a great number of patients and staff alike. The garden offers patients and staff a private, tranquil space to spend precious time. It is hoped that the garden will benefit patients rehabilitation as they become re-aquainted with the outside world and use their senses to stimulate the healing process.

Our team has had the pleasure of transforming the garden into a beautiful place to host a wedding for one of our patients on end-of-life care. This enabled the bride and groom to make the most of this very precious time together and celebrate their special day.

When we received a last-minute request to do something special for a long-term patient who was spending his 18[th] birthday on Critical care, we also used the garden to host a special birthday party for him. With balloons, gifts, and a visit from his favourite Marvel Hero, we were delighted to give him and his family a day to remember.

Other garden developments include the opening of the veteran’s garden, we are delighted to be able to fund this project, with the opening coinciding with Remembrance Day. The garden is in honour of our armed forces and is a space for staff to spend some quiet time to reflect and remember the fallen.

South Tees Hospitals Charity and Associated Funds Annual Report - 2022/23

Improving Dementia care

Improving dementia care for our patients has also been a highlight this year. Many wards and departments throughout the Trust have been provided with resources and professionally created activities for older people and people living with dementia. Meaningful activities also include a monthly dementia friendly tea party funded by Our Hospitals Charity, which is greatly enjoyed by patients and staff.

Supporting staff wellbeing

For the second year running we have funded the South Tees Staff Choir. Feedback has shown that the staff involved have enjoyed this and feel it is improving their health & wellbeing. Regular flashmobs around the hospital are enjoyed by patients and visitors and the number of staff joining the choir continues to grow.

Thank you once again for all your support and helping to make a difference. With your continued support, we will continue to help fund future projects, big or small and we will look forward to seeing what 2023-2024 has to offer.

Derek

Professor Derek Bell OBE – Joint Chairman

South Tees Hospitals Charity and Associated Funds Annual Report - 2022/23

2. Aims and Objectives

Our Role

South Tees Hospitals Charity raises funds to enhance the services that South Tees Hospitals NHS Foundation Trust provides to more than one million people across the region.

The role of the Charity is not to fund patient care, but with the support of the communities we serve to improve it and help with those extras over and above what the NHS can provide.

Our Mission

To support and fund initiatives beyond the remit and the capacity of the NHS.

To achieve this, we:

Keep the hospitals of the Trust at the forefront of healthcare delivery by purchasing state of the art equipment and funding research.
Enhance our teams’ training to keep our staff at the leading edge of medical advances.
Create the best possible environments for patients and staff.
Grow the level of charitable giving to ensure that the work can continue by supporting staff and patients in their fundraising activities.

The hospitals that we support are:

James Cook University Hospital
The Friarage Hospital
East Cleveland Primary Care Hospital
Guisborough Primary Care Hospital
Redcar Primary Care Hospital
The Friary Community Hospital

3. Financial Review

The net assets of South Tees Hospitals Charity as at 31 March 2023 were £6.832 million (£6.476 million 2021/22). There was an increase in cash holdings to £1.302 million (£1.033 million 2021/22), a decrease in debtors to £0.061 million (£0.153 million 2021/22) and a decrease in creditors to £0.737 million (£1.222 million 2021/22).

Income

The Charity relies on income received from donations, legacies and the voluntary fundraising efforts of the general public who supported specific appeals or made gifts to support the wards from which they or loved ones had received care. In 2022/23 income increased from £1.292 million to £1.913 million.

The total income received amounting to £1.913 million was represented by voluntary income donations which totalled £0.637 million (£0.519 million 2021/22), bequests totalled £0.622

South Tees Hospitals Charity and Associated Funds Annual Report - 2022/23

million (£0.065 million 2021/22), grants received totalled £0.369 million (£0.354 million 2021/22) and gifts in kind totalled £0.031 (£0.088 Million 2021/22)

Investment income of £0.182 million (£0.177 million 2021/22 was received as well as income from charitable trading and activities of £0.072 million (£0.089 million 2021/22).

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Incoming Resources
Voluntary income donations
£0.637m
Bequests £0.622m
Grants received £0.369m
Gifts in Kind £0.031m
Investment £0.182m
Charitable activities £0.072m
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Expenditure

The Charity is a grant giving charity, rather than a service providing charity, in that it seeks to support the services provided by South Tees Hospitals NHS Foundation Trust. All equipment and services purchased by the Charity are donated to the Trust.

Expenditure from funds totalled £1.251 million, compared to expenditure of £2.384 million during the previous financial year.

Expenditure has been spent on capital £0.236 million (£0.979 million 2021/22), patient & staff welfare £0.740 million (£1.121 million 2021/22), support costs £0.151 million (£0.160 million 2021/22) and other costs £0.124 million (£0.124 million 2021/22).

South Tees Hospitals Charity and Associated Funds Annual Report - 2022/23

Outgoing Resources

Capital £0.236m Patient & Staff Welfare £0.740m Support Costs £0.151m Other Costs £0.124m

Investments

The Charity’s investments are held with CCLA Investment Management and Barclays Wealth with an aim of maximising income and longer-term growth.

The management of 93% of the investment portfolio was moved from Barclays Wealth to CCLA during 2019/20. Cash funds are held outside the portfolio to deal with the short-term cash flow issues. As of 31[st] March 2023, there has been an in year unrealised loss of £0.306 million.

The performance of the investments is monitored by the Charitable Funds Committee which reports to the Board and reviews investment portfolio valuations provided at regular intervals by the advisers.

The investment policy is reviewed on an on-going basis.

Market value brought forward Fair value gains/(losses) Market value as at 31 March 2023 Investments held: Alternative assets COIF Charities Ethical Investment Fund	Total Funds 31 March 2023 £'000 Total Funds 31 March 2022 £'000
	6,512 6,039 (306) 473
	6,206 6,512
	326 326 5,880 6,186
	6,206 6,512

South Tees Hospitals Charity and Associated Funds Annual Report - 2022/23

4. Structure, Governance and Management

The South Tees Hospitals Charity was established by Trust Deed and is registered with the Charity Commission (charity number 1056061).

As a body it is a member of the Association of NHS Charities. All trust funds are registered with the Charity Commission under the umbrella registration of South Tees Hospitals Charity.

The Charity’s funds were established using the model declaration of trust and all funds held as at the date of registration were either a part of this unrestricted fund or registered as separate restricted funds under the main charity.

The Corporate Trustee fulfils its legal duty by ensuring that restricted funds are used in accordance with the objectives of each fund, and in designating funds the Trustee respects the wishes of the donor with due consideration made to the Charity Commission’s published guidance on Public Benefit as specified under the Charities Act 2011.

At the end of March 2023 there were 264 funds (260 in 2021/22). Each has a designated fund manager with specialist knowledge of the area to which the fund relates. They are generally clinical directors, managers, clinical consultants, heads of departments, ward sisters and Operations Directors who have the delegated power to commit expenditure up to £25,000. For all grants over £25,000 there is an approved Scheme of Delegation based on the Charity’s governance framework .

Charitable receipts are recorded in accordance with donors’ wishes to registered funds and expenditure is made in accordance with the objectives of each designated trust fund, within the limits set by the Trust’s Standing Orders, Standing Financial Instructions and Scheme of Delegation.

The accounting records and day-to-day administration of the funds are dealt with by the charities finance office, which is within the Trust’s Chief Executive’s department. It is the responsibility of the Corporate Trustee to ensure that the legal and accounting requirements of the Charities Act 2011 and directives from the Charity Commission are adhered to and that surplus funds are invested in a manner suitable for the maximisation of income and to safeguard the capital sums therein.

The Charitable Funds Committee supports and advises the Corporate Trustee of South Tees Hospitals Charity in discharging its responsibilities and remains accountable to the board of directors, acting as Corporate Trustee, in every respect. In 2022/23 the Committee met on three occasions to consider a range of strategic issues within its remit.

Our purpose is to enhance the services that South Tees Hospitals NHS Foundation Trust provides, supporting the provision of general healthcare and staff welfare, the improvement of specialist clinical and clinical support services and the advancement of clinical knowledge. The role of the Charity is not to fund patient care but to improve it.

South Tees Hospitals Charity and Associated Funds Annual Report - 2022/23

Strong governance is critical to our success and reputation. The Corporate Trustee has overall responsibility for our work, to ensure we are governed in accordance with the legal and regulatory requirements, and we meet our aims and objectives as a charity. The Corporate Trustee of the Charity is tasked with:

Furthering our overall purpose and setting our direction and strategy.
Ensuring our work is effective, responsible and legal.
Safeguarding our finances, resources and property and ensuring they are used to further our purpose.
Being ‘accountable’ to those with an interest or stake in us or those who regulate us.
Establishing clear boundaries with the staff and volunteers who carry out our work between the governance role of the Trustees and operational or day-to-day matters.
• Ensuring the Charity operates effectively.

By establishing good governance at South Tees Hospitals Charity, ensuring:

Compliance with law and regulation.
That our Charity is well run and efficient.
That any problems are identified early and dealt with appropriately.
That we make a difference and the objects of the Charity are advanced

Appointments to the Board are in accordance with the Trust’s Constitution, Terms of Authorisation and legal and regulatory requirements.

Members of the Corporate Trustee

The Corporate Trustee is South Tees Hospital NHS Foundation Trust

The Charitable Funds Committee is supported by a number of professional advisers:

Bankers

Barclays Bank Plc Leicester LE87 2BB

External Auditor

Robson Laidler Accountants Limited Fernwood House, Fernwood Road, Jesmond, Newcastle Upon Tyne, NE2 1TJ

South Tees Hospitals Charity and Associated Funds Annual Report - 2022/23

Investment Advisors

CCLA Investment Management Senator House 85 Queen Victoria Street London EC4V 4ET

Additional expertise relating to training is drawn from being a member of the Association of NHS Charities that holds regular conferences and symposia for Directors of the Corporate Trustee.

Key management personnel remuneration

Members of the Corporate Trustee and Charitable Funds Committee are required to disclose relevant interests and register them with the Head of Charity, withdrawing from decisions where conflicts of interest may exist.

The daily management of the Charity is delegated to the Head of Charity who is employed under the terms and conditions set out in the Agenda for Change. Remuneration is reviewed annually and is increased in accordance with the nationally agreed increases in pay scale.

Constitution and powers

Administration

The Corporate Trustee, under its Scheme of Delegation, has appointed the Chief Finance Officer to be the officer responsible for implementation of procedures, to ensure all legislation and directives are adhered to and that expenditure from trust funds is appropriate for the purpose.

The Chief Finance Officer maintains such accounts and records, as necessary, to record and protect all funds held in trust. He has responsibility for ensuring that the activities of each fund are within the regulations of the Charities Act 2011 and comply with the procedures adopted by the Trust.

Risk Management

The members of the Charitable Funds Committee periodically review the Charity’s risk register.

The major external risk, to which the charity could be exposed, is a sudden fall in the value of the investment portfolio. However, the Directors invest over the long term to ensure that the greatest returns are achieved.

South Tees Hospitals Charity and Associated Funds Annual Report - 2022/23

Policies and procedures to mitigate risks include:

The Charity has systems in place to ensure that all donations and legacies are accurately recorded, and that all expenditure is correctly authorised in accordance with the objects of the Charity.
The internal controls of the Trust have been adopted by the Charity.
The Charity is audited by the Trust’s internal auditors, PricewaterhouseCoopers LLP, who review and test systems, and the Trust’s external auditors, Robson Laidler Accountants Ltd, who audit the Charity’s Annual Accounts and Report.
The risks around investment balances have been mitigated through the holding of a balanced portfolio.
CCLA was appointed to manage the Charity’s investments as from 13[th ] February 2020. There are procedures in place to review the investment policy and monitor its performance .
Short term cash holdings are held in bank accounts to enable immediate access to funds. The level of short-term cash holdings has been reviewed as part of the Charitable Funds Treasury Management Policy.

Partnership working

The patients of South Tees Hospitals NHS Foundation Trust are the main beneficiaries of the Charity, and the Trust is a related party by virtue of the Board of Directors acting as Corporate Trustee. By working in partnership with the Trust, the Corporate Trustee has regard to the main activities taking place within its hospitals to ensure that funds are spent in accordance with the objects of each fund to support the health and welfare of patients and staff.

The Trust is well supported by groups and associated charities, including the South Cleveland Heart Fund, Royal Voluntary Service, Friends of the Friarage and The James Cook University Hospital Voluntary Services Organisation who over many years have raised hundreds of thousands of pounds to support the Trust.

Reserves

At the end of 2022/23 the charity held reserves of £6.832 million. All monies held in funds were unrestricted apart from £1.306 million which are held on a restricted basis.

Reserves are built up to reinvest into the South Tees Hospitals NHS Foundation Trust and provide maximum benefit to the patients and staff. The classification of restricted and unrestricted reserves is reviewed on an annual basis.

The Trustees have agreed that the minimum level of reserves that should be held within the Charity is £400,000. This equates to approximately one year’s operational costs and estimated annual commitments which includes salary costs.

Cash on hand balances of £1.302 million are held at the end of 2022/23.

South Tees Hospitals Charity and Associated Funds Annual Report - 2022/23

5. Objectives – Moving Forwards

Our Hospital’s Charity is committed to continuing to deliver projects and support all areas within the Trust where we can demonstrate and fulfil our Charitable Objectives. Last year we spoke about embarking on an ambitious 12-month strategy and we have continued to develop this by aligning our Charitable Funds with the Collaboratives within the Trust. This is an ongoing process which has involved consolidating and merging some of our Fund balances so that we have a more manageable number of Funds to enable us to focus on developing a spending strategy within the Charity. Donations and fundraising can be targeted towards the areas where the monies will make the greatest impact and difference to the hospital’s patients, staff, and visitors. This should also focus our fundraising efforts for the future and will be a continuing objective moving forward.

We are the fundraising arm of South Tees Hospitals NHS Foundation Trust and support patients and staff across Middlesbrough, Redcar & Cleveland and Hambleton & Richmondshire. We are pleased to say that during the coming year, some of our fundraising efforts will come to fruition with the opening of a new Cardiothoracic Research Unit which will be launched in November 2023.

Thanks to the efforts of fundraisers and generosity of the local community there will be a new home for heart research on Teesside, just as Teesside’s heart unit is celebrating a milestone anniversary after 30 years of delivering state-of-the-art care to patients with cardiovascular disease across the region and beyond.

Our Hospitals Charity and South Cleveland Heart Fund announced ambitious plans to raise £650,000 in March 2022 to bring first class cardiovascular research facilities to Teesside.

This has culminated in the creation of a dedicated clinical setting for patients in research trials as well as a reception, patient waiting area, new office space and a meeting room. We look forward to its official opening in November this year and seeing how this enhances and adds benefit to our patient care.

We help improve the health and wellbeing of over one million people across the region. Whether it’s state of the art equipment, pioneering research, increasing staff training or improving staff health and wellbeing, we are committed to raising the level of NHS service and are proud to have been involved with developing a Unit such as that above.

Another project that we have earmarked for 2023-2024 is further development of the Children’s Garden by building a summer house for those children with ASD. These children can find it difficult to come into the hospital for treatment and will be able to get seen in the

South Tees Hospitals Charity and Associated Funds Annual Report - 2022/23

summer house instead. We have already had an offer for the donation of a summer house and furniture from SABIC, in memory of one of their staff’s little boy who was a long term patient. We will continue to help improve the NHS for those closest to you and patient feedback is important for the Trust to find better ways of delivering it services and Our Hospital’s Charity is happy to assist with these extra measures that enhance the whole experience of patient care.

Ultimately, in moving forward, we will continue to do what we do best and help to fundraise and support projects like those above while streamlining Funds to make them more manageable and transparent to Fund holders. We plan to engage with the Fund Holders on a more regular basis to discuss any upcoming projects or areas where targeted help is required. As part of this process, we will explain the different ways in which the Charity is able to help and hopefully come up with solutions that will benefit staff and patient welfare, enhancing the care and facilities that are already provided by the Trust.

6. Statement of Directors’ responsibilities in respect of the Corporate Trustee’s annual report and the financial statements

In accordance with the trust deed and charity law, the Corporate Trustee is responsible for preparing the Charity’s Annual Report and the financial statements in accordance with applicable law and regulations. The Corporate Trustee has elected to prepare the financial statements in accordance with FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland.

The financial statements are required by law to give a true and fair view of the state of affairs of the charity and of the excess of expenditure over income for that period.

In preparing these financial statements, generally accepted accounting practice entails that the trustees:

select suitable accounting policies and then apply them consistently;
make judgements and estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards and the Statement of Recommended Practice have been followed, subject to any material departures disclosed and explained in the financial statements;
state whether the financial statements comply with the trust deed, 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 business.

The Members of the Corporate Trustee are required to act in accordance with the trust deed of the charity, within the framework of trust law. They are responsible for keeping proper accounting records, sufficient to disclose at any time, with reasonable accuracy, the financial position of the charity at that time, and to enable the Corporate Trustee to ensure that, where any statements of accounts are prepared by them under section 132(1) of the Charities Act 2011, those statements of accounts comply with the requirements of regulations under that provision. The Members of the Corporate Trustee have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the charity and to prevent and detect fraud and other irregularities.

South Tees Hospitals Charity and Associated Funds Annual Report - 2022/23

The Corporate Trustee is responsible for the maintenance and integrity of the financial and other information included on the charity’s website. Legislation in the UK governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

On behalf of the Corporate Trustee,

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Signed:
5th December 2023
…………………………………………… ………..…
Chairman Date
5th December 2023
…………………………………………… ………......
Chief Finance Officer Date
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South Tees Hospitals Charity and Associated Funds Annual Report - 2022/23

7. Audit report

Independent auditor’s report to the trustees of South Tees Hospitals NHS Charity

Opinion

We have audited the financial statements of South Tees Hospitals NHS Charity (the ‘charity’) for the year ended 31 March 2023 which comprise Statement of Financial Activities, Balance Sheet, Statement of Cash flow and 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 FRS 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 2023 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.

South Tees Hospitals Charity and Associated Funds Annual Report - 2022/23

Other information

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

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 course of 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 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 (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:

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

Responsibilities of Trustee

As explained more fully in the trustee responsibilities statement set out on page 23, the trustee is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees 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 trustee 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.

South Tees Hospitals Charity and Associated Funds Annual Report - 2022/23

Auditor’s responsibilities for the audit of the financial statements

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

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 the 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. Based on our understanding of the charity and its activities, we identified that the principal risks of non-compliance with laws and regulations related to the UK tax legislation, pensions legislation, employment regulation and health and safety regulation, anti-bribery, corruption and fraud, money laundering and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements, such as the Charities Act 2011 and the Charities Statement of Recommended Practice.

We evaluated the trustees’ and management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to posting manual journal entries to manipulate financial performance, management bias through judgements and assumptions in significant accounting estimates, and significant one-off or unusual transactions.

Our audit procedures were designed to respond to those identified risks, including noncompliance with laws and regulations (irregularities) and fraud that are material to the financial statements. Our audit procedures included but were not limited to:

Discussing with the trustees and management their policies and procedures regarding compliance with laws and regulations;
Communicating identified laws and regulations throughout our engagement team and remaining alert to any indications of non-compliance throughout our audit; and
Considering the risk of acts by the charity which were contrary to applicable laws and regulations, including fraud.

Our audit procedures in relation to fraud included but were not limited to:

Making enquiries of the trustees and management on whether they had knowledge of any actual, suspected or alleged fraud;
Gaining an understanding of the internal controls established to mitigate risks related to fraud;
Discussing amongst the engagement team the risks of fraud; and
Addressing the risks of fraud through management override of controls by performing journal entry testing.

South Tees Hospitals Charity and Associated Funds Annual Report - 2022/23

There are inherent limitations in the audit procedures described above and the primary responsibility for the prevention and detection of irregularities including fraud rests with management. As with any audit, there remained a risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal controls.

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 the audit report

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

Signed: M Moran

Michael T Moran BA FCA (Senior Statutory Auditor)

For and on behalf of Robson Laidler Accountants Limited

Statutory Auditor

Fernwood House

Fernwood Road

Jesmond

Newcastle Upon Tyne

NE2 1TJ

Date: 12 December 2023

Robson Laidler Accountants Limited is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.

South Tees Hospitals Charity and Associated Funds Annual Report - 2022/23

8. South Tees Hospitals Charity Statement of Financial Activities for the year ending 31 March 2023

South Tees Hospitals Charity and Associated Funds Annual Report - 2022/23

9. South Tees Hospitals Charity Balance Sheet as at 31 March 2023

The notes at pages 24 to 39 form part of these accounts and were approved by the Corporate Trustee on …………. 5th December 2023

Signed on its behalf by: Signed ……………………………………..

Name ……………………………………. Chris Hand - Chief Finance Officer

Date …………………….. 5th December 2023

South Tees Hospitals Charity and Associated Funds Annual Report - 2022/23

for the year ending 31 March 2023

South Tees Hospitals Charity and Associated Funds Annual Report - 2022/23

11. South Tees Hospitals Charity Notes to the accounts

Note 1 Accounting policies Note 2 Prior year comparatives by type of fund Note 3 Related party transactions Note 4 Income from donations and legacies Note 5 Analysis of income from charitable activities
Note 6 Analysis of income from other trading activities Note 7 Role of volunteers Note 8 Gross investment income
Note 9 Analysis of expenditure on raising funds
Note 10 Analysis of charitable expenditure
Note 11 Allocation of support costs and overheads
Note 12 Directors of the Corporate Trustee remuneration, benefits and expenses Note 13 Staff costs and key management personnel Note 14 Auditor’s remuneration
Note 15 Fixed asset investments
Note 16 Analysis of current debtors
Note 17 Analysis of cash and cash equivalents
Note 18 Analysis of liabilities
Note 19 Reconciliation of net income to net cash flow from operating activities
Note 20 Transfer between funds Note 21 Analysis of charitable funds
Note 22 Funds over £100,000 for disclosure

South Tees Hospitals Charity and Associated Funds Annual Report - 2022/23

1. Accounting Policies

(a) 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 the statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS102) issued on 16 July 2014 and the Charities Act 2011 and UK Generally Accepted Practice as it applies from 1 January 2019.

The Trustee considers that there are no material uncertainties about South Tees Hospitals Charity’s ability to continue as a going concern. There are no material uncertainties affecting the current year’s accounts.

In future years, the key risks to the Charity would be a fall in donations or a fall in the stock market and resulting losses and reduced investment income. The trustees have a risk management strategy and reserves policy in place to mitigate against such risks.

(b) Funds structure

South Tees Hospitals Charity has both restricted and unrestricted funds but has no endowment funds. The Charity has specific funds for each service area of its hospitals; each fund has its own objectives/purpose and is classified as un-restricted designated funds. If a general donation is made and no specific area is identified then the monies will be paid into the General Purpose Fund which is used to benefit patients and staff of the trust at the Trustees’ discretion. Appeals for a specific purpose are classified as restricted.

The major funds held are disclosed in note 22.

All income is recognised once the Charity has entitlement, or is probable that the resources will be received and the monetary value can be measured with sufficient reliability.

Where there are terms and conditions attached to the income, particularly grants, then the terms and conditions must be met before the income is recognised as the entitlement condition will not be satisfied until that point. When the 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.

(d) Income from legacies

South Tees Hospitals Charity and Associated Funds Annual Report - 2022/23

Legacies are accounted for as income 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
the executors have established that there are sufficient assets in the estate to pay the legacy
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 criteria for income recognition are met.

(e) Expenditure and irrecoverable VAT

All expenditure has been 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
The amount of the obligation can be measured or estimated reliably.

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

The Charity reimburses the Trust for expenditure they have incurred on the Charity’s behalf; this is as a result of the grants awarded by the Charity. Reimbursement is made when the liabilities have been settled and payment made. Any goods received prior to 31 March but not yet settled are accounted for as accruals in year.

(f) Recognition of expenditure and associated liabilities as a result of a grant

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

Grant payments are recognised as expenditure when the conditions for their payment have been met or where there is a constructive obligation to make a payment. A constructive obligation arises when:

We have communicated our intention to award a grant to a recipient who then has a reasonable expectation that they will receive the grant
We have made a public announcement about a commitment which is specific enough for the recipient to have a reasonable expectation that they will receive a grant
There is an established pattern of practice which indicates to the recipient that we will honour the commitment.

South Tees Hospitals Charity and Associated Funds Annual Report - 2022/23

The Trustee has control over the amount and timing of grant payments and consequently where approval has been given by them and any of the above criteria have been met then a liability is recognised. When grants are awarded with conditions attached then those conditions have to be met, or expected to be met, before the liability is recognised.

Where an intention has not been communicated, then no expenditure is recognised but an appropriate designation is made in the appropriate fund. If a grant has been offered but there is uncertainty as to whether it will be accepted or whether conditions will be met then no liability is recognised but a contingent liability is disclosed.

(g) Allocation of support costs

Support costs are those 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 11.

(h) 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 a charity’s objects. The costs of generating funds represent fundraising costs together with investment management fees. Fundraising costs include expenses for fundraising activities.

(i) Charitable activities

Costs of charitable activities comprise all the costs incurred in the pursuit of the charitable objectives 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 10.

(j) 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.

(k) Debtors

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

(l) 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 less than 90 day notice interest bearing savings accounts.

South Tees Hospitals Charity and Associated Funds Annual Report - 2022/23

(m) Creditors

Creditors are amounts owed by the Charity. They are measured at the amounts that the Charity must pay to settle the debt.

Those amounts which are owed in more than one year are shown as long term creditors.

(n) Realised gains and losses

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).

South Tees Hospitals Charity and Associated Funds Annual Report - 2022/23

2. Prior year comparatives by type of fund

The primary statements provide prior year comparatives in total; this note provides prior year comparatives for the Statement of Financial Activities and Balance Sheet for each type of fund that South Tees Hospitals Charity manages.

South Tees Hospitals Charity and Associated Funds Annual Report- 2022123 B Uttrestrfrted Funds. Sheet as at3113no3 £'IM)Os £'OOOs Fixed assets tni"estments 02C 6206 6.512 6.512 Totll Fued.4sset5 CllrrÈtttssets DebtLf5 and.4ceTued tncome 61 153 Cash znd CashEquii-alents Total CurrtlltAssets 14} 57 897 Lialjiiiti Cfeithtors faljmg due 7thl one year (737) (1222) Net ¢urrtnt a¥stts (680) (325) Total NetAssets 5526 6.187 ResetTes Uwesti1etedFdS 5526 6.187 Tot•1 tre3 6.187 30

South Tees Hospitals Charity and Associated Funds Annual Report- 2022123 •C Restrict Fund5- Ststemtnt ofFinucialA¢tiTitT f0rtheleirEndU31l3r3 OP3 •o•in• £'OOOs £'IIIH)s D¢rations and Legacies Ctiayitable.4cti¥yties 344 OtherTradins.4ctiiilies TotallncoThe 43 lJ37 388 EwDditu Costs of RaisIt Funds Chitable aetiirities 30 1,079 1,109 Tot*1 txpetsdlth 985 Netgains II055e5 onini-e5tment5 Netineomtl{e4en&itllrel Tr•nxftrs fiwds ioj 1017 1?35) Reconciliation of fund5 Totsifund5 broughtforward 524 1?06 289 31

South Tees Hospitals Charity and Associated Funds Annual Report - 2022/23

3. Related party transactions

South Tees Hospitals NHS Foundation Trust patients are the main beneficiary of the Charity and the trust is a related party by virtue of being Corporate Trustee of the Charity. The charity has provided funding to the Trust for approved expenditure made on behalf of the charity. During the current financial year this expenditure amounted to £1.251 million (£2.384 million 2021/22) with £0.679 million owed by the charity to the Trust at 31 March 2022 (£1.094 million 2021/22).

During the year, no members of the Charitable Funds Committee, the key management staff or parties related to them has undertaken any material transaction within the South Tees Hospitals Charity and Associated Funds.

The South Tees Hospitals NHS Foundation Trust makes a number of services available to the Charity; these include the use of the general ledger system, procurement system, payroll reimbursement system and office accommodation.

South Tees Hospitals Charity and Associated Funds Annual Report - 2022/23

Board members and directors

Declarations of interests, completed on an annual basis by Executive and NonExecutive Directors, have been reviewed to identify any related party relationships requiring disclosure within this note.

There were no charity related party transactions connected with Directors of the Corporate Trustee and their associated interests.

4. Income from donations and legacies

Donations from individuals are gifts from members of the public, relatives of patients and staff. Grateful patients and family members express their gratitude for the care received; supporters often undertake fundraising activities and collect sponsorship.

5. Analysis of income from charitable activities

Trading income was primarily from the therapy treatments to patients of South Tees Hospitals provided by the Trinity Holistic Centre.

South Tees Hospitals Charity and Associated Funds Annual Report - 2022/23

6. Analysis of income from other trading activities

7. Role of volunteers

The Charity is reliant on a team of volunteers. 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.

8. Gross investment income

9. Analysis of expenditure on raising funds

South Tees Hospitals Charity and Associated Funds Annual Report - 2022/23

10. Analysis of charitable expenditure

The Charity did not undertake any direct charitable activities on its own account during the year.

Expenditure is incurred in favour of South Tees Hospitals NHS Foundation Trust to carry out activities which will benefit NHS patients, their families and staff. The Charity incurred expenditure with third parties in pursuance of those grants or reimbursed expenditure incurred by them or their staff.

The Charity reimburses the Trust once the expenditure is recognised, this is when liabilities have been settled and payment made with obligations committing the Charity to expenditure by fund-holders to whom power to expend Charity funds has been delegated, any goods or services received prior to 31 March 2022 but not yet settled are accounted for as accruals in year.

South Tees Hospitals Charity and Associated Funds Annual Report - 2022/23

11. Allocation of support costs and overheads

12. Directors of the Corporate Trustee remuneration, benefits and expenses

The members of the governing committee give their time freely but are able to claim expenses to reimburse them for costs that they incur in fulfilling their duties.

Committee members have not received remuneration, benefits or expenses during 2022/23 or 2021/22 in relation to their support of the charity.

13. Staff costs and Key management personnel

The Charity does not directly employ any members of staff. The services used by the Charity are provided by South Tees Hospitals Trust. The cost of providing these services are recharged to the Charity by the Trust.

The charity considers its key management personnel to be the Directors of the Corporate Trustee and the Director of Charities.

14. Auditor’s remuneration

The auditor’s remuneration for the 2021/22 financial year was £10,200 (£10,800 2021/22) related solely to the audit with no additional work being undertaken.

South Tees Hospitals Charity and Associated Funds Annual Report - 2022/23

15. Fixed asset investments

16. Analysis of current debtors

Other debtors represent sums owed to the Charity by other non-related parties.

17. Analysis of cash and cash equivalents

South Tees Hospitals Charity and Associated Funds Annual Report - 2022/23

18. Analysis of liabilities

19. Reconciliation of net income to net cash flow from operating activities

20. Transfers between funds

There were two transfers from restricted to unrestricted funds during the financial year.

South Tees Hospitals Charity and Associated Funds Annual Report - 2022/23

21. Analysis of charitable funds

£100,000 or above is set as an opening or closing balance threshold for the separate reporting of material designated funds.

Other designated funds relate to assisting patients of services provided by the South Tees Hospitals NHS Foundation Trust for which donors have indicated their nonbinding wishes when making their generous gifts.

The general funds included donations where donors have 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 South Tees Hospitals NHS Foundation Trust at the absolute discretion of the Corporate Trustee.

South Tees Hospitals Charity and Associated Funds Annual Report - 2022/23

22. Funds over £100,000 for disclosure

23. Post Balance Sheet Events

The Charity received confirmation before 31 March 2023 that 3 legacies, totalling £383,999, were due to be settled. The notifications did not provide details of the financial consideration and in line with the reporting requirements of the SORP, these were not reported in the Accounts. The legacies were received in April and will be disclosed in the 2023/24 position.