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2021-03-31-accounts

THE QUEEN VICTORIA HOSPITAL NHS TRUST CHARITABLE FUND

Registered Charity No. 1056120

TRUSTEE'S REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021

The annual report and accounts have been prepared by the trustee in accordance with the statement of recommended practice "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)" (second edition, effective 1 January 2019) issued by the Charity Commission.

Further administrative information relating to the charity can be found on page 6.

Signed on behalf of the corporate trustee

Acting Chair of Queen Victoria Hospital NHS Foundation Trust

Date 16 / 12 / 2021

1

1 Constitution and objectives of the charity

The Queen Victoria Hospital NHS Trust Charitable Fund ("the charity") was entered in the Charity Commission's Central Register of Charities on 13 June 1996. Its governing document is a declaration of trust made by the Queen Victoria Hospital NHS Trust dated 10 May 1996. It has a single, corporate trustee: Queen Victoria Hospital NHS Foundation Trust (QVH NHSFT).

The Charity recognises its duty to ensure the fund is managed appropriately and grants given only in accordance with its charitable objects, which are:

‘For any charitable purpose or purposes relating to the National Health Service wholly or mainly for the service provided by the Queen Victoria Hospital NHS Trust’ .

The following criteria are used when considering applications:

2 Structure, Governance and Management

Registration - The charity is registered with the Charity Commission as an umbrella charity covering all the charitable funds administered by QVH NHSFT.

Trustee - Since it has a single, corporate trustee, the functions of trustees are, in practice, performed by the board of directors of QVH NHSFT who meet regularly to consider matters of policy and overall control. The names of the present directors and those who served during the year ended 31 March 2021 are shown on page 6.

Non-executive directors are appointed by the governors of QVH NHSFT. Executive directors are appointed by the non-executive directors and the chief executive.

Since the single trustee is a corporate body, induction and training of the trustee is not a relevant concept. However, the directors of QVH NHSFT receive advice as necessary from their legal advisers and employees of the Trust using guidance provided by the Charity Commission. In November 2019 the Chair provided training for members of the corporate trustee covering the regulatory and governance framework within which the corporate trustee operates, and the relationship between the corporate trustee and the charity committee.

Advisory Committee - The board has set up a Charity Committee (CC) chaired by a non-executive director of the Trust and consisting of one other non-executive director, the medical director, the director of finance and performance and a representative from each of the nursing, allied health professional and medical workforces. Non-voting, ex-officio attendees represent the League of Friends and the public and staff governors of the QVH NHSFT. Other members of QVH NHSFT staff also attend regularly in an advisory capacity. The function of the committee is to oversee the management, investments and expenditure of the charity and to ensure that it complies with statute. It reviews and authorises items of expenditure up to £20,000 and reports regularly to the corporate trustee, making recommendations in respect of items of expenditure in excess of £20,000.

2

2 (cont.)

Administration - Day-to-day administration is carried out by the staff of QVH NHSFT. The cost of this service is passed on to the charity in the form of an administration fee.

The Charity has no employees of its own and therefore makes no remuneration to employees. Similarly, no employees received employee benefits, excluding employer pension costs, of more than £60,000.

Structure - For administrative purposes the charity is divided into a number of restricted and unrestricted funds. The restricted funds usually relate to individual bequests which stipulated the specific purpose for which the funds were to be used. The remaining funds are unrestricted but the trustee has designated some of them for specific purposes.

Risk - The corporate trustee reviews potential risks and the steps taken to avoid them materialising on an annual basis.

Public Benefit - The activities of the charity are carried out with the aim of enhancing the facilities and services of the hospital in ways that go beyond those that would normally be available from NHS resources. They benefit NHS patients both directly through the provision of equipment and other facilities and indirectly through the provision of additional education and training and an improved working environment for staff. When reviewing its aims and objectives, setting its grant making policy and planning future activities the trustee acts in accordance with the Charity Commission’s general guidance on public benefit.

Financial Instructions - In respect of tendering and contracting the charity adopts the provisions in the Standing Financial Instructions of the QVH NHSFT. These were last reviewed in August 2021.

3 Annual review

3.1 - Overview of activities

Over the last few years the charity has gained momentum and embraced development and promotion more proactively. As with many charities, the pandemic created a complete change in the fundraising landscape which affected our income as all of our plans for the year were cancelled. We ran one online fundraising campaign which raised just over £6,000 but there was a large decline in the direct donations the charity received.

Thanks to the exceptional generosity of the public to the national NHS Charities Together ‘COVID-19’ campaign, we were fortunate to benefit from several grants which enabled us to support staff initiatives such as providing additional psychological therapy and providing free meals during the early days of the pandemic.

The charity team shifted their focus from fundraising to managing the coordination of gifts, keeping a log of everything we had received as the local community came together to show their support for our hospital. Our staff were enormously grateful for this kindness and generosity at such a difficult time.

The charity team are now focusing on improving donor development, increasing communication with our supporters and continuing to share the impact donations are having both with patients and staff.

3

Grants made - During the year the charity made grants totalling £210,000. The broad analysis of these can be seen in Note 8.

A large proportion were made to support the hospital's response to the Covid pandemic, with £43,000 being spent on laptop computers to facilitate the dramatically increased level of remote working that was implemented and £37,000 being used to fund free meals for staff working onsite.

In the medical and theraputic fields the charity provided £16,000 for virtual reality equipment to improve patient experience by the relief of pain and anxiety and £10,000 to assist the purchase of flexible videoendoscopes. Staff training was supported by grants totalling £18,000.

Fundraising - The cancellation of most of the charity's planned fundraising initiatives resulted in general donations declining from £162,000 in 2019/20 to £64,000 in 2020/21. However, grants received from NHS Charities Together totalled £179,000 so that total donations increased to £243,000.

Legacies - Legacies received in 2020/21 totalled £605,000, of which £209,000 was for general charitable purposes and £396,000 was for restricted purposes.

3.2 Financial position

Largely as a result of the receipt of the legacies noted above, the charity ended the year with a balance of £1,152,000, an increase of £622,000 over the previous year.

The cash balance at the end of the year stood at £892,000, of which £537,000 was available for general purposes. The excess of debtors over creditors stood at £260,000. The unusually high debtor balance resulted from the accrual of a large legacy payment received one day after the end of the financial year.

The charity therefore ended the year in a strong financial position, able to meet all its liabilities and have cash available to continue its charitable work.

4 Investment policy

The charity holds all its cash, other than that needed for day-to-day transactions, in deposit accounts. Keeping cash readily available for use reflects the trustee's policy that funds should be spent rather than held as investments (see Reserves Policy, below). It also avoids risks inherent in the volatility of the stock market and eliminates investment management costs.

The investment income generated by endowment funds is transferred to restricted or unrestricted funds, depending on the terms of the donation, when it is received. It is subsequently spent for purposes which are in accordance with the terms of the original bequests. In 2020/21 there were no endowment funds.

5 Reserves policy

The trustee's policy is that funds other than endowments should be spent when suitable applications arise rather than that they should be retained indefinitely with the intention of generating investment income. This reflects the fact that the charity does not generally enter into on-going commitments and therefore does not need to ensure a steady flow of income. For this reason the trustee also does not consider it appropriate to maintain a target level of reserves.

Where funds need to be accumulated for a particular objective, they may be held in reserve until a sufficient amount has been gathered, but only when there is a reasonable prospect of achieving the objective within two years.

At 31 March 2021 funds available for the general purposes of the charity, that is, excluding restricted funds, stood at £433,000 compared to £120,000 at the end of 2019/20.

4

6 Grant making policy

The policy of the trustee is to ensure that all grants made are in accordance with the wishes of the donor (where stipulated), the objectives of the charity and the overall strategy of QVH NHSFT.

Applications for grants are approved initially by the senior management appropriate to the nature of the grant. For example, a request for funding of medical equipment would be approved first by the hospital's Medical Devices Committee, Medical Director and Director of Finance and Performance.

The trustee has delegated authority to approve grants up to £20,000 to the Charity Committee. Grants in excess of £20,000 can only be approved by the full board of QVH NHSFT acting in its capacity as corporate trustee. Grants of less than £2,000 can be approved by the Director of Corporate Affairs and the Director of Finance and Performance, and are reported to the Charity Committee.

7 Future plans

The charity has a proud history of supporting key initiatives at the hospital. We will continue to build on this including supporting staff understanding of the charity, engagement with existing supporters, and sharing case studies and impact of how donations are making a difference. As the hospital supports patients from the South of England, we will work to ensure we can reach beyond our local community to highlight the vital support the charity provides to Queen Victoria Hospital and the specialist care it provides in burns and reconstructive surgery across a wider geography.

The charity funds the provision of more and better equipment, above and beyond that funded by the NHS, as well as improving patient environments and supporting other projects to benefit patients and staff. Our ability to continue this vital support for Queen Victoria Hospital is dependent on our ability to maintain and increase donations from the general public. We are therefore grateful for the support from those who not only donate their own money, but who inspire others to donate through their fundraising efforts. We will continue to support an ongoing programme of fundraising today to produce the funds needed to invest in the healthcare of tomorrow.

8 COVID-19

Since the charity does not hold investments and is less dependent on fundraising events for its existence it is not expected that its future will be jeopardised by the virus. However, it is clear that the requirements for social distancing will greatly restrict the scope for popular fundraising initiatives and there will be an inevitable decline in income from donations in certain areas. This will not reduce our efforts to build on our relationships to develop donations where there is scope to do so, as noted in Section 7. However, progress may be slowed by the general effect on the economy.

QVH Charity has benefited from the national fundraising for the NHS through the pandemic with specific grants made early in 2021/22 for free meals for staff on site through the pandemic and for additional psychological support for staff. We anticipate making further grants based on these national funds during 2020/21.

Approved on behalf of the corporate trustee.

Acting Chair of Queen Victoria Hospital NHS FoundationTrust

Date 16/12/2021

5

FURTHER INFORMATION ABOUT THE GOVERNANCE OF THE CHARITY

Charity Name: The Queen Victoria Hospital NHS Trust Charitable Fund
Registered Charity Number: 1056120
Registered Address: The Queen Victoria Hospital, Holtye Road, East Grinstead, West Sussex, RH19 3DZ
Trustee: Queen Victoria Hospital NHS Foundation Trust
The present voting Directors of the NHS Foundation Trust and those who served
during the year to 31 March 2021 are:
Keith Altman - Medical Director
Paul Dillon-Robinson - Non-executive Director
Kevin Gould - Non-executive Director
Beryl Hobson* - Chair until 30 September 2021
Stephen Jenkin - Chief Executive
Michelle Miles* - Director of Finance and Performance
Gary Needle** - Non-executive Director/Acting Chair from 1 October 2021
Karen Norman - Non-executive Director
Nicola Reeves* - Interim Director of Nursing and Quality from 16 November 2020
Joanne Thomas - Director of Nursing and Quality until 11 November 2020
* Member of the Charity Committee.
** Chair of the Charity Committee.
Charity Committee: The Corporate Trustee has delegated responsibility for day-to-day management of
the charity to the Charity Committee. The members of the committee are:
Members of the Charity Committee (with voting rights):
Keith Altman
Medical Director
Beryl Hobson
Trust Chair
Michelle Miles
Director of Finance and Performance
Gary Needle
Non-Executive Director, Charity Committee Chair
Clinical Specialist, Hand Therapy
Kathryn Pank
Interim Director of Nursing and Quality
Nicola Reeves
Invited members of the Charity Committee (without voting rights):
Siva Kumar
Consultant Plastic Surgeon
Geraldine Opreshko
Director of Workforce and Organisational Development until
30 June 2021
Clare Pirie
Director of Communications and Corporate Affairs
Camilla Slattery
Head of Fundraising and Voluntary Services
Ex officio attendees:
StJohn Brown
Chair, League of Friends until 1 September 2020
Christine Halloway
Public Governor until 30 June 2021
Carol Lehan
Staff Governor until 31 January 2021
Raman Malhotra
Staff Governor from 1 February 2021
Caroline Migo
Public Governor from 1 July 2021
Banking: Bank accounts are held with:
a). CafCash Ltd
b). Lloyds Bank Plc
Kings Hill
1/3 London Rd
West Malling
East Grinstead
Kent ME19 4TA
West Sussex RH19 1AH
Legal advice: Bircham Dyson Bell LLP, 50 Broadway, London, SW1H 0BL
Auditors: KPMG LLP, 15 Canada Square, London E14 5GL

Queries relating to these accounts should be addressed to the Financial Controller, Queen Victoria Hospital NHS Foundation Trust, Holtye Road, East Grinstead, West Sussex, RH19 3DZ.

6

Statement of trustee's responsibilities in respect of the Trustee’s annual report and the financial statements

Under charity law, the trustee is responsible for preparing a Trustee's Annual Report and the financial statements in accordance with applicable law and regulations. The trustee is required to prepare the financial statements in accordance with UK Accounting Standards, including 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 incoming resources and application of resources for that period.

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

The trustee is required to act in accordance with the trust deed of the charity, within the framework of trust law. It is responsible for keeping accounting records which are sufficient to show and explain the charity’s transactions and disclose at any time, with reasonable accuracy, the financial position of the charity at that time, and to enable the 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. It is responsible for such internal control as it determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error, and has 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.

On behalf of the trustee

Signed:

Date 16/12/2021

Acting Chair, Queen Victoria Hospital NHS Foundation Trust

Signed: Date 16/12/2021

Director, Queen Victoria Hospital NHS Foundation Trust

7

Independent auditor's report to the Trustee of The Queen Victoria Hospital NHS Trust Charitable Fund

Opinion

We have audited the financial statements of Queen Victoria Hospital NHS Trust Charitable Fund (“the charity”) for the year ended 31 March 2021 which comprise the Statement of Financial Activities, Balance Sheet and related notes, including the accounting policies in note 1.

In our opinion the financial statements:

Basis for opinion

We have been appointed as auditor under section 149 of the Charities Act 2011 (or its predecessors) and report in accordance with regulations made under section 154 of that Act.

We conducted our audit in accordance with International Standards on Auditing (UK) (“ISAs (UK)”) and applicable law. Our responsibilities are described below. We have fulfilled our ethical responsibilities under, and are independent of the charity in accordance with, UK ethical requirements including the FRC Ethical Standard. We believe that the audit evidence we have obtained is a sufficient and appropriate basis for our opinion.

Going concern

The trustee has prepared the financial statements on the going concern basis as they do not intend to liquidate the charity or to cease its operations, and as they have concluded that the charity’s financial position means that this is realistic. They have also concluded that there are no material uncertainties that could have cast significant doubt over its ability to continue as a going concern for at least a year from the date of approval of the financial statements (“the going concern period”).

In our evaluation of the trustee’s conclusions, we considered the inherent risks to the charity’s business model and analysed how those risks might affect the charity’s financial resources or ability to continue operations over the going concern period.

Our conclusions based on this work:

However, as we cannot predict all future events or conditions and as subsequent events may result in outcomes that are inconsistent with judgements that were reasonable at the time they were made, the above conclusions are not a guarantee that the charity will continue in operation.

Fraud and breaches of laws and regulations – ability to detect

Identifying and responding to risks of material misstatement due to fraud

To identify risks of material misstatement due to fraud (“fraud risks”) we assessed events or conditions that could indicate an incentive or pressure to commit fraud or provide an opportunity to commit fraud. Our risk assessment procedures included:

8

Independent auditor's report to the Trustee of The Queen Victoria Hospital NHS Trust Charitable Fund (cont.)

We communicated identified fraud risks throughout the audit team and remained alert to any indications of fraud throughout the audit.

As required by auditing standards we perform procedures to address the risk of management override of controls and the risk of fraudulent revenue recognition, in particular the risk that donations and legacies are recorded in the wrong period and the risk that management may be in a position to make inappropriate accounting entries.

We did not identify any additional fraud risks.

We performed procedures including:

Identifying and responding to risks of material misstatement due to non-compliance with laws and regulations

We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience and through discussion with the directors (as required by auditing standards) and discussed with the directors the policies and procedures regarding compliance with laws and regulations.

We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit.

The potential effect of these laws and regulations on the financial statements varies considerably.

Firstly, the charity is subject to laws and regulations that directly affect the financial statements including financial reporting legislation (including related charities legislation) and we assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.

While the charity is subject to many other laws and regulations, we did not identify any others where the consequences of non-compliance alone could have a material effect on amounts or disclosures in the financial statements.

Context of the ability of the audit to detect fraud or breaches of law or regulation

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed noncompliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it.

In addition, as with any audit, there remained a higher risk of non-detection of fraud, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. Our audit procedures are designed to detect material misstatement. We are not responsible for preventing noncompliance or fraud and cannot be expected to detect non-compliance with all laws and regulations.

Other information

The Corporate Trustee is responsible for the other information, which comprises the Trustee’s Annual Report. Our opinion on the financial statements does not cover the other information and, accordingly, we do not express an audit opinion or, except as explicitly stated below, any form of assurance conclusion thereon.

9

Independent auditor's report to the Trustee of The Queen Victoria Hospital NHS Trust Charitable Fund (cont.)

Our responsibility is to read the other information and, in doing so, consider whether, based on our financial statements audit work, the information therein is materially misstated or inconsistent with the financial statements or our audit knowledge. We are required to report to you if:

We have nothing to report in these respects.

Matters on which we are required to report by exception

Under the Charities Act 2011 we are required to report to you if, in our opinion:

We have nothing to report in these respects.

Trustee’s responsibilities

As explained more fully in their statement set out on page 7, the trustee is responsible for: the preparation of financial statements which give a true and fair view; 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; 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 they either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities

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 our opinion in an auditor’s report. Reasonable assurance is a high level of assurance, but does not 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 aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements.

A fuller description of our responsibilities is provided on the FRC’s website at: www.frc.org.uk/auditorsresponsibilities

The purpose of our audit work and to whom we owe our responsibilities

This report is made solely to the charity’s trustee as a body, in accordance with section 149 of the Charities Act 2011 (or its predecessors) and regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the charity’s trustee those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and its trustee as a body, for our audit work, for this report, or for the opinions we have formed.

Dean Gibbs

for and on behalf of KPMG LLP

Chartered Accountants

KPMG LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006 15 Canada Square, London, E14 5GL

11 January 2022

10

Statement of Financial Activities for the year ended 31 March 2021

Note
Donations and legacies
3
Charitable activities
4
Investments
5
Total income
Expenditure on:
Raising funds
7
Charitable activities
8
Buildings & Furniture
Equipment
Patient & Staff amenities
Research
Other contributions to QVH
Total charitable activities
Total expenditure
Net income/(expenditure)
Transfers between funds
12
Net movement in funds
1 April 2020
12
Fund balances carried
forward at 31 March 2021
Income and
Endowments from:		 Unrestricted
Restricted
Funds
Funds
£000
£000
396
479
36
-
-
-
432
479
(47)
-
(9)
-
(43)
(44)
(96)
-
-
-
(42)
(8)
(190)
(52)
(237)
(52)
195
427
118
(118)
313
309
120
410
433
719
2020-21		 Total
Funds
£000
875
36
-
911
(47)
(9)
(87)
(96)
-
(50)
(242)
(289)
622
-
622
530
1,152		 Unrestricted
Restricted
Funds
Funds
£000
£000
134
41
9
1
-
1
143
43
(46)
-
(91)
(15)
(33)
(70)
(1)
(8)
(29)
(6)
(149)
(12)
(303)
(111)
(349)
(111)
(206)
(68)
-
-
(206)
(68)
326
478
120
410
2019-20		 Total
Funds
£000
175
10
1
186
(46)
(106)
(103)
(9)
(35)
(161)
(414)
(460)
(274)
-
(274)
804
530

11

Balance Sheet as at 31 March 2021

Note
Current Assets
10
Debtors
Cash and cash equivalents
Total Current Assets
Creditors: Amounts falling due
within one year
11
Total Net Assets
Funds of the Charity
12
Income Funds:
Restricted
Unrestricted
Total Funds		 Unrestricted
Restricted
Total
Funds
Funds
Funds
£000
£000
£000
10
390
400
537
355
892
547
745
1,292
(114)
(26)
(140)
433
719
1,152
-
719
719
433
-
433
433
719
1,152
31 March 2021		 Unrestricted
Restricted
Funds
Funds
£000
£000
3
1
279
409
282
410
(162)
-
120
410
-
410
120
-
120
410
31 March 2020		 Total
Funds
£000
4
688
692
(162)
530
410
120
530

The notes at pages 13 to 20 form part of this account.

Approved on behalf of the corporate trustee

Signed

Date 16/12/2021

Acting Chair of Queen Victoria Hospital NHS Foundation Trust

12

The Queen Victoria Hospital NHS Trust Charitable Fund - Annual

Notes to the account

1 Accounting Policies

1.1 Basis of preparation

The financial statements have been prepared under the historic cost convention.

The accounts (financial statements) have been prepared to give a ‘true and fair’ view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a ‘true and fair view’. This departure has involved following Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued on 16 July 2014 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.

The financial statements have been prepared on a going concern basis which the Trustee considers to be appropriate for the following reasons.

In future years, the key risk to the charity is a fall in income from donations but the trustee has arrangements in place to mitigate the consequences of this (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 as 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. The charity's restricted funds result from bequests, the terms of which specify the purposes to which they must be put.

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). The Charity has no expendable or permanent endowment funds.

Unrestricted funds - Those funds which are neither restricted income nor endowment funds, are unrestricted income funds, which are sub-analysed between designated (earmarked) funds where the trustees have set aside amounts to be used for specific purposes or which reflect the non-binding wishes of donors and unrestricted funds which are at the trustee's discretion, including the general fund which represents the charity’s reserves.

The funds held in each of these categories are disclosed in Note 12.

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The Queen Victoria Hospital NHS Trust Charitable Fund - Annual

1.3 Incoming resources

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

b) Donations

Donations, other than legacies and endowments (see below), are accounted for on receipt. Non-monetary donations are recorded on receipt and included in the value of donations. Where the actual value is not known they are valued consistently with the general market value of similar items. In some instances during the 2020/21 financial year there was insufficient information to be able to value donations in kind as part of the accounts due to records not being maintained of the nature or quantity of items received. The charity has reviewed these donations and is satisfied that they are not material to the fund, consisting primarily of small quantities of low value consumable items donated for staff, such as food and drink. Each of these items was distributed prior to the end of the financial year and so has no impact on the reported net income.

c) Legacies

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

Receipt is probable when:

The incoming resources received from the invested endowment fund are wholly restricted.

1.4 Resources expended and irrecoverable VAT

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

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

1.5 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.

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.

14

The Queen Victoria Hospital NHS Trust Charitable Fund - Annual

A constructive obligation arises when:

The trustee has control over the amount and timing of grant payments and consequently where approval has been given by the trustee and any of the above criteria have been met then a liability is recognised. Grants are not usually awarded with conditions attached. However, when they are then those conditions have to be met before the liability is recognised.

1.5 Recognition of expenditure and associated liabilities as a result of a grant (cont.)

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.

1.6 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 6.

1.7 Fundraising costs

The costs of generating funds are all costs associated with generating income for the charity.

1.8 Costs of 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 8.

1.9 Debtors

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

1.10 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.

1.11 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.

15

2 Related party transactions

QVH NHSFT is the principle beneficiary of the charity. The charity has provided funding of £162,000 (2019/20 £370,000) to QVH NHSFT for approved expenditure made on behalf of the charity. This is included in the total charitable activity costs of £195,000 shown on the face of the Statement of Financial Activities and detailed in Note 8.

QVH NHSFT provides the Charity with administrative services for which a fee is charged. This fee is included in the support costs analysed in Note 6.

During the year none of the members of the NHS Foundation Trust Board or senior NHS staff or parties related to them were beneficiaries of the charity.

Neither the corporate trustee nor any member of the QVH NHSFT's board of directors has received honoraria, emoluments or expenses in the year and the trustee has not purchased trustee indemnity insurance.

3 Income from donations and legacies

Unrestricted
funds
£000
Donations from individuals
34
Corporate donations
55
Donations from societies, charities etc.
98
Legacies
209
396		 Restricted
funds
£000
-
-
83
396
479		 2020-21
Total
£000
34
55
181
605
875		 2019-20
Total
£000
63
14
85
13
175

Material legacies - During the year the following amounts were received:

Restricted - £390,000 for microsurgery Restricted - £5,000 for maxillofacial surgery Restricted - £500 for the treatment of burns

Unrestricted - £209,000 for the general purposes of the charity

£390,000 was received under a legacy agreement of which a further, as yet unquantified, balance is due to the charity but has not yet been received as the executor is awaiting HMRC confirmation of the inheritance tax position. An indemnity agreement has been provided to the executor of the legacy against potential claims made against the funds received; to date the Trust has not been notified of and has no expectation of further claims.

4 Income from charitable activities

Unrestricted
funds
£000
Fundraising activities
36
36		 Restricted
funds
£000
-
-		 2020-21
Total
£000
36
36		 2019-20
Total
£000
10
10

5 Income from investment

Investment income was derived entirely from cash on deposit in the UK.

Unrestricted
funds
£000
Cash on deposit
-
-		 Restricted
funds
£000
-
-		 2020-21
Total
£000
-
-		 2019-20
Total
£000
1
1

In 2020/21 interest rates fell to .01%.

16

6 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:

Allocation and
apportionment of
support costs
Audit
Financial services
Computer expenses
Other expenses
Total Governance
Financial administration
Total
Raising funds
Charitable activities
Total
Apportionment		 Raising
Charitable
funds
Activities
£000
£000
-
5
-
8
-
3
1
11
1
27
1
5
2
32
Unrestricted
Funds
£000
2
12
14		 2020-21
Total
£000
5
8
3
12
28
6
34
Restricted
Funds
£000
-
20
20		 2019-20
Basis of
Total
apportionment
£000
5
Balances
8
Staff time
3
Balances
12
Balances
28
9
Staff time
37
2020-21
2019-20
Total
Total
£000
£000
2
2
32
35
34
37

7 Analysis of expenditure on raising funds

Unrestricted
Funds
£000
Fundraiser
45
Hire of venue
-
Support costs
2
47		 Restricted
Funds
£000
-
-
-
-		 2020-21
2019-20
Total
Total
£000
£000
45
43
-
1
2
2
47
46

17

8 Analysis of charitable expenditure

The charity made grants to QVH NHSFT for the purposes summarised below:

Buildings & furniture
Equipment
Patient & staff amenities
Research
Other contributions to QVH		 Number
of grants
1
16
6
0
6
29		 Grant
funded
activity
£000
8
65
93
-
44
210		 Support
costs
£000
1
22
3
-
6
32		 2020-21
2019-20
Total
Total
£000
£000
9
106
87
103
96
9
-
35
50
161
242
414

9 Auditor's remuneration

External audit fees, exclusive of irrecoverable VAT, were £4,000 (2019/20 £4,000) for the statutory audit, with no other additional work being undertaken (2019/20 £nil). It should be noted that the figure of £5,000 (2019/20 £5,000) shown in Note 6 includes VAT.

10 Analysis of current assets

Debtors under 1 year
Accrued income
Prepayments
Cash and deposits
CAF deposit account
Lloyds current account
ysis of current liabilities
Trade creditors
Non-trade creditors
Accruals		 31 March
31 March
2021
2020
£000
£000
399
2
1
2
400
4
584
628
308
60
892
688
31 March
31 March
2021
2020
£000
£000
54
1
69
0
17
161
140
162

11 Analysis of current liabilities

18

12 Analysis of charitable funds

12.1 Categories and purposes of funds

Fund type: Nature and purpose of the fund: Unrestricted Funds The General Fund receives unrestricted donations and is used for general charitable purposes. Within the General Fund the trustee has designated the NHS Charities Together, Paediatric and Staff Funds, as shown in Note 12.2 below. Restricted Funds Most of these funds arise from legacies which specify particular uses for the funds. The CREW Fund is for the provision of an annual camp for children who are or have been patients in the burns department. The Jenny Dorricott Fund is for charitable purposes relating to burns. The Linda Furminger Fund is for charitable purposes relating to burns. The Margaret Hole Fund is for charitable purposes relating to plastic surgery. The Lottie House Fund is for charitable purposes relating to the treatment of burns. The Derrick Hughes Fund is for charitable purposes relating to the treatment of burns. The Evelyn Humphrey Fund is for the provision of patients' comforts. The JK Fund is for charitable purposes relating to microsurgery. The John McCully Fund is for charitable purposes relating to burns and the provision of x-ray facilities. The NHSCT Stage 1 Distribution 3 Fund is for the support of minority ethnic groups within the hospital. The NHSCT Stage 3 Fund is for psychological therapies in support of the hospital's staff. The Muriel Nicoll Fund is for the benefit of the Eye Bank. The William Pullen Fund is for charitable purposes relating to Peanut Ward. The Thomas Fund is for charitable purposes relating to maxillofacial surgery.

19

12.2 Analysis of fund movements

Unrestricted Funds
Designated funds within the
General Fund:
General
NHS Charities Together Fund
Paediatrics
Staff
Restricted funds
CREW Fund
Jenny Dorricott Fund
Linda Furminger Fund
Margaret Hole Fund
Lottie House Fund
Derrick Hughes Fund
E.M.Humphrey Fund
JK Fund
John McCully Fund
Muriel Nicoll Fund
NHSCT Stage 1 Distribution 3
NHSCT Stage 3
William Pullen Fund
Thomas Fund
Total Funds		 Balance
1 April
2020
£000
98

-
22
-
120
8
32
-
134
14
52
51
-
15
103
-
-
1
-
410
530		 Incoming
Resources
£000
333
95
2
2
432
-
-
1
-
-
-
-
390
-
-
50
33
-
5
479
911		 Resources
Expended
£000
( 142)
( 95)
-
-
( 237)
-
( 19)
-
( 8)
( 1)
( 3)
( 2)
( 5)
( 1)
( 10)
( 1)
( 1)
( 1)
-
( 52)
( 289)		 Transfers
£000
118
-
-
-
118
-
-
-
-
-
-
-
( 118)
-
-
-
-
-
-
( 118)
-		 Balance
31 March
2021
£000
407
-
24
2
433
8
13
1
126
13
49
49
267
14
93
49
32
-
5
719
1,152

20