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2022-03-31-accounts

Newcastle Hospitals Charity Annual Report and Accounts

2021-2022

A Message from the Chair of the Charity Committee and Charity Director

Contents

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A Message from the Chair and Charity Director Pg 3
Newcastle Hospitals Charity – Who We Are Pg 4
Newcastle Hospitals Charity Review of the Year 2021/22 Pg 5-12
COVID-19 - Our Response Pg 13
Structure and Governance Pg 18
A Look Forward to the Future Pg 27
Financial Review of the Year 2021/22 Pg 28
Annual Accounts 2021/22 Pg 34
Audit Report Pg 48
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It is always with a great amount of pride that we reflect on a year in the life of Newcastle Hospitals Charity (NHC) and 2021/22 is no exception. Whilst continuing to support Newcastle Hospitals as they continued to rise to the challenge of the pandemic, we have also been working closely with the Hospitals as they look to the future and it has been our privilege to have been able to commit £10million of funding for projects that are helping Newcastle Hospitals to go further for patients, for staff and for the people of the region.

It is difficult to summarise the courage, dedication and compassion that has been shown by everyone within Newcastle Hospitals both during the pandemic and as we emerge from it. Throughout the pandemic we worked very closely with Newcastle Hospitals colleagues to ensure that NHC supported their efforts in many new and different ways, providing funding for initiatives such as additional psychological support for staff; tailored sessions to support recovery and resilience and enhancements to dedicated rest areas.

the health and wellbeing of patients and staff. Activities have included our first ‘artists in residence’ within Newcastle Urology Stone Centre at Freeman Hospital, improving the staff and patient environment with large, site-specific, wall murals. A partnership with an Open University research programme gave staff opportunity to take part in an online creative writing course, to encourage the use of writing as a method for coping with trauma.

Looking forward, NHC continues to work in partnership with Newcastle Hospitals to complement their world-class healthcare services, building on what has already been achieved by funding such initiatives as the Newcastle Improvement programme and the Nursing and Allied Health Research Academy. We know that we are facing uncertain economic times, in our region and for the NHS and for fundraising. As such, we remain even more committed to securing meaningful funding for strategic priorities and initiatives, ranging across partnership work to tackle health inequalities; funding for patient facing cutting-edge medical research; support for major capital projects and improvement programmes that enhance and improve the patient experience and environment.

We have also grown our small and dedicated charity team over the last year, and they have embraced the multiple challenges of working remotely; fundraising virtually; developing and rolling out new, more efficient systems and processes; and ensuring that they uphold our promise to look after each of our supporters in the best way possible.

As the largest NHS Charity in the North East and North Cumbria, the charity team successfully led a funding bid to NHS Charities Together to secure £1.5million of funding for projects that are helping to tackle health inequalities, improve people’s mental health and wellbeing, and offer specialist support to people disproportionately affected by the direct and indirect impacts of COVID-19, across the North East and North Cumbria.

We are incredibly grateful to every single supporter of Newcastle Hospitals Charity and we are committed to delivering our future strategy to help our hospitals go further in improving the health and wellbeing of the patients, people and wider communities of Newcastle Hospitals.

With further funding secured from NHS Charities Together, we were able to launch a new ‘Arts Programme’ for Newcastle Hospitals in 2021/22, led by a dedicated Arts Programme Manager, to deliver a programme of creative and cultural activities focused on supporting

With all the very best

Jill Baker Charity Committee Chair

Teri Bayliss Charity Director

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Newcastle Hospitals Charity Review of the Year 2021/22

Who We Are

Newcastle Hospitals Charity is privileged to have been able to support the NHS, patients, staff, and wider communities throughout 2021/22. This could not have been done without the brilliant support from all of the donors, fundraisers, partners and supporters of the Charity.

The strategic priority to establish an arts engagement programme for staff, patients and the local community has progressed well. Commencing in June 2021, the Charity began delivering a 12-month pilot Arts Programme across the Trust, with the role of Arts Programme Manager embedded into the Charity structure. Engagement with the programme has been very positive and it is evident that there are numerous opportunities for the programme to improve patient and visitor experience, enhancing care for patients and the wider community, and offering staff creative opportunities to support their health and wellbeing.

Partnership working has and continues to be an important part of the Charity’s strategy and, while a large proportion of grants have been awarded within Newcastle Hospitals, the Charity is proud to have been able to support external organisations with more than £2.5m in funding. Just some partner organisations from the charitable sector the Charity has collaborated with in the last year include the Newcastle United Foundation, MediCinema, Healthworks, Newcastle Carers, Citizens Advice Gateshead, and the Centre for Sustainable Healthcare.

Over the course of the year the Charity’s has been delighted to award more than 250 grants, totalling more than £10 million in value. Each grant has been directly linked to the Charity’s strategic goals which are set out below;

The overall objective of the Newcastle upon Tyne Hospitals NHS Charity (“the Charity”) is outlined in the Charity’s governing document and as such, funds are used “for any charitable purpose or purposes relating to the National Health Service or to general or specific purposes of The Newcastle upon Tyne Hospitals NHS Foundation Trust”.

The Charity has a set of aims, which benefit the public through the Charity’s support for the Newcastle upon Tyne Hospitals NHS Foundation Trust (“the Trust”). These aims ensure that the Trustee complies with the duty to have due regard to public benefit guidance published by the Charity Commission and set out in section 4 of the Charities Act 2006.

In 2021/22, the Charity’s main aim has been to provide funding for a range of initiatives that continually enhance the excellent patient care and experience across Newcastle Hospitals and beyond. This includes providing additional equipment, supporting staff training and development, and funding new and innovative research projects. To achieve this aim the Charity continues to support:

l Tackling health inequalities and key health issues for our region and nationally.

Below you can see a breakdown of how we invested these funds into each of our goals

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Improve staff health, Improve the patient
wellbeing and and visitor experience,
development: enhancing care for
£2,895,807 patients and the wider
£4,236,100 (27%) community:
(39%)
Tackle health
inequalities and key
£3,686,453
health issues for our
(34%)
region and nationally:
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In 2021/22 the Charity has been able to provide support ranging from £20 to more than £3m, some of which are detailed below:

£3,192,246 for a Research Development Institute for Nursing, Midwifery and Allied Health Professionals (NMAHP) staff from across the Trust.

£342,000 for a range of measures that supported hospital staff with the worst effects of the pandemic.

£12,000 for the establishment of a Hardship Fund for patients and families at the Great North Children’s Hospital.

£71,320 for a community support service for people suffering with Long Covid.

£1,567,845 for eight community partnership projects that tackled health inequality across the North East and North Cumbria.

£138,756 for a pilot project encouraging people to stay physically active while they’re in hospital – and once they’re at home.

£59,357 for Helping Hands, a social welfare service for Trust staff.

£5,000 for the provision of fresh fruit to staff at the Northern Centre for Cancer Care

Below are some of examples of how Charity funds have been used to support and make a difference for the NHS, patients, staff, and wider communities throughout 2021/22.

Prolonging the life of donated organs, increasing the number of successful transplantations

The Challenge:

Sadly, in 2019/20, 300 patients died in England whilst awaiting a liver, kidney, or pancreas transplant. In the same period, 900 donated organs were rendered unusable because blood flow to the organs ceased long before the organs were removed from the donors.

The Solution:

The Charity supported Newcastle Hospitals with grant funding of £74,345 to purchase one of the UK’s first Abdominal Normothermic Regional Perfusion (ANRP) machines, an innovative piece of equipment that restores circulation to abdominal organs, helping to keep them viable between donor and recipient. This helps increase successful organ transplantation and reduces complications after surgery. Donated organs are a life-changing gift from the donor, as well as a great generosity from the donor’s family. This machine means that even more donors’ final wishes can be honoured.

The Impact:

£409,441 for a number of clinical research projects that help keep Newcastle at the forefront of health innovation and research.

£19,717 for occupational therapy support to patients at the Sir Bobby Robson Cancer Trials Unit.

£74,345 for an innovative machine that prolongs the life of donated organs.

£3,000 for a LEGO model of a radiotherapy machine, to help young cancer patients know what to expect.

It is anticipated that having this ANRP machine will enable Newcastle Hospitals to undertake an additional 25 liver transplants, four pancreas transplants, and 12 kidney transplants each year and will transform and save lives. Having this technology in place will also keep Newcastle at the forefront of healthcare innovation and it is hoped that other Trusts will learn from the Trust’s experience with the machine, spreading the benefits of this grant across the country and beyond.

“It was exhilarating to hear the news that Newcastle Hospitals Charity had agreed to fund the purchase of an ANRP machine. This will significantly transform the transplant service that we provide, and I look forward to a strong partnership with Newcastle Hospitals Charity to achieve that.”

Consultant Transplant Surgeon Aimen Amer

Above: Consultant Transplant Surgeon Aimen Amer

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LEGO to reduce anxiety in paediatric radiotherapy

The Challenge:

When a child needs radiotherapy treatment for cancer, it can be a scary prospect. They need to be calm and lie still for the best results, which can be difficult if they are anxious or upset. The radiotherapy team wanted to minimise the distress these young patients were feeling at such a difficult time and make hospital feel like a less intimidating place.

The Solution:

The Charity made a grant of £3,000 to the Paediatric Radiotherapy Team for a LEGO model of a LINAC scanner radiotherapy machine, via the Great North Children’s Hospital Foundation Fund. The Radiotherapy Team worked with local LEGO architects ‘Brick This’ to create a LEGO model of a radiotherapy LINAC scanner that children can play with before they start their treatment, to get a sense of what to expect.

Pioneering a Research Development Institute for Nurses, Midwives and Allied Health Professionals

The Challenge:

Nurses, Midwives and Allied Health Professionals (NMAHPs) make up a huge proportion of Newcastle Hospitals’ workforce but only had limited flexible opportunities to undertake valuable research alongside their clinical practice. Obstacles identified included a high level of competition for national research funding and fellowships, as well as NMAHPs being unable to find time away from clinical practice to dedicate to research.

The Solution:

The Charity supported NMAHPs by giving them our largest ever grant of more than £3 million, to help create Newcastle’s new NMAHP Researcher Development Institute. This will support hundreds of staff, enabling them to turn their research ideas into reality. It will fund a range of academic opportunities for NMAHPs as well as addressing some of the challenges associated with research within busy clinical roles, such as back-filling staff posts when needed.

The model is interactive and realistic, with a bed that moves up and down and is large enough to accommodate a Barbie-sized doll to play the part of the patient.

The Impact:

The Impact:

“ Radiotherapy can be scary, especially for children, and especially when you see the machine for the first time. This fab model is going to be so helpful in helping us explain to young children how their treatment is going to work, and it also looks cool – like something from Star Wars! Steve from “Brick This” has been a joy to work with and the process of applying for a small grant from Newcastle Hospitals Charity was straightforward, too.”

Bethany Cockburn, a Paediatric Radiotherapy Nurse Specialist who applied for the grant.

It is expected that 12 children a month are currently benefiting from educational play with this model.

Above: LEGO LINAC Scanner

The Institute will support at least 50 NMAHPs over five years, enabling their professional aspirations and creating additional, world-leading research in Newcastle. This project will bring about a lasting change and supports one of our main strategic aims; to fund major developments and health-related clinical research and innovation.

“ This incredibly generous grant will help us drive forward our innovative vision to introduce a unique Research Institute, harnessing the potential of our growing research community. Access to targeted support, relevant expertise and dedicated funding, means our NMAHPs can benefit from a truly unique springboard.”

Maurya Cushlow, Executive Chief Nurse at Newcastle Hospitals

Above: NMAHPs like Alvin can benefit from this additional research support

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Below: All Newcastle Hospitals staff are eligible to access financial management advice. Pictured: (L-R) Emma McIlhatton, Staff Nurse and Filipe Landeiro Sardinha, Sister/Charge Nurse

Offering a helping hand with a social welfare service for staff

The Challenge:

The COVID-19 pandemic has been an extremely challenging time for the Trust’s 18,000+ staff, with increased workloads and uncertainty affecting almost everyone and combined with a steady cost-of-living increase. When the hospital Chaplaincy team made us aware of an increase in staff expressing concerns about financial worries, we were in an ideal position to help.

The Solution:

The Charity partnered with Citizens Advice Gateshead, supplying grant funding of £59,357 for a pilot project to support Trust staff with direct access to free, impartial, and confidential social welfare advice and information via this well-regarded local charity.

Embedding physical activity within the health system: Active Hospitals pilot

The Challenge:

In 2021, a review of physical activity levels of 203 patients admitted to Ward 16 at the Freeman Hospital found that 80% of them were physically inactive in the lead-up to their admission. In response to this link between physical inactivity and hospitalisation, the Trust’s Therapy Services department submitted a proposal that would help them address this important issue and, in doing so, reduce the risk of patient readmission to hospital.

The Solution:

The Charity made a grant of £138,756 for the Active Hospitals project, which offers physical activity programmes on hospital wards and supports patients to move more while they are in hospital through targeted activities including bedside exercises, walking programmes and group exercise sessions.

On leaving hospital, patients will be provided with a personalised activity plan to keep them active either at home or in the community, with referrals being made to a wide range of local partner organisations who can also help.

The Impact:

It is anticipated that 60 patients per month will benefit from the scheme and will hopefully consider leading a more active lifestyle.

The Impact:

This funding means that three experienced Social Welfare Advisers are now on hand to support staff with initial advice and referrals to other services. Around 10 members of staff are using the service each month, receiving bespoke advice on a range of issues including financial management, access to financial aid, debt management, and benefits. This project supports one of our main goals in supporting the wellbeing of NHS staff at Newcastle Hospitals.

“ I was really pleased when the Charity supported this proposal, as promoting physical activity and the associated health benefits of this is a key objective of our Therapy Services strategy. Thanks to this funding, the Trust and our partners can begin to tackle community health inequalities and helps us build collaborative new models of care and partnerships with community colleagues.”

Ewan Dick, Director of Allied Health Professionals & Therapy Services at Newcastle Hospitals

“ Working in partnership with the local voluntary sector is a major part of our strategy, and we were delighted when Citizens Advice said they could help us with this vital support to Trust staff.”

Jon Goodwin, Head of Grant Programmes

Above: Physical activity will be embedded into the hospital experience for patients like Jean

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Financial aid for struggling families at the Great North Children’s Hospital

The Challenge:

Families whose children are undergoing care at the Great North Children’s Hospital can face unexpected and increased expenses, which – against a tough economic backdrop – can often push them into hardship.

The Solution:

The Charity established a pilot Hardship Fund for families at the Great North Children’s Hospital, with a £12,000 donation from Amazon Gateshead. Through this, whether their stay in hospital is brief and unexpected or longer-term, families can benefit from funds for urgent essentials, like pyjamas or toiletries, or for larger things that are preventing them from being with their child, such as travel passes or funds for minor car repairs.

The Impact:

It is expected that the £12,000 funding will last for around two years and will support around 30 families in need during one of the most stressful periods of their lives.

“ Support from the Hardship Fund is offered in a ‘light touch’, non-overwhelming, unbureaucratic way, in recognition of the fact that the families in question are going through perhaps the most frightening time of their lives.”

Katie Watson, Head of Chaplaincy at Newcastle Hospitals

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Left Graeme from Sticky
Sponge kindly donated a
custom-made stag cake to
RVI staff
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COVID-19 – Our Response

The Charity continues to be humbled and grateful for all of the continued support received throughout the pandemic and to date from supporters and partners.

The reduction of COVID-19 restrictions meant that the Charity could resume some larger-scale fundraising events including the return of the Great North Run which saw a one-off change in route through Newcastle and Gateshead, with 300 runners taking part in this much-loved event supporting Newcastle Hospitals Charity and raising more than £100,000.

The Charity has continued to be overwhelmed with all the amazing support for Newcastle Hospitals’ dedicated staff with many generous gifts being donated to benefit staff, including: a huge donation of Quality Street tins from John Lewis Newcastle; coffee and merchandise from Starbucks Jesmond and Kingston Park, and a magnificent custom-made stag cake provided by a local baker. These much-valued gifts provided some brightness for hospital staff as they worked tirelessly in challenging circumstances.

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Charity Supporters
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The Charity is very grateful to the continued and generous support of its many supporters throughout 2021/22. Below are some examples of the amazing commitment that supporters of the Charity has shown throughout 2021/22.

Community Fundraising

Left: Gracie (right) and friends hand in their funds at the RVI

Around 20% of support for the Charity came from community events and fundraising activity in 2021/22. Just some highlights include:

Individual Supporters

As well as the thoughtful and committed community fundraisers who support its work, individual donors play a huge role in supporting the Charity to make a difference.

Almost every supporter of the Charity has a deeply personal story or motivation, almost always linked to the outstanding care and treatment provided by Newcastle Hospitals. Mr Chris Bond, who donated £20,913 in support of the work of the Oesophageal Cancer Unit, wanted to thank Newcastle Hospitals for the compassionate care shown for his wife Tina during her treatment, commented that:

“During Tina’s treatment I think the one thing we were most grateful for was the amount of time Alex Phillips, Maria Bliss and Alex Bradshaw (Consultant Clinical Oncologist, Northern Centre for Cancer Care) were able to spend with us explaining the situation and discussing the pros and cons of the various options. Their time is precious, and they must have so many patients to look after but time never seemed to be an issue. I hope they are able to provide that for all patients.”

The Charity is particularly grateful for the following significant donations:

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Partnership Funding

Partnership funding and working is incredibly important to the Charity and a huge range of partnership supporters worked with the Charity in 2021/22.

A very special mention must be made of the Newcastle Building Society who passed a multi- million-pound landmark in its support for the Sir Bobby Robson Foundation within the Charity, after renewing its funding of a specialist nursing post at the Freeman Hospital. By renewing support for the post for a third consecutive year, the Society’s cumulative contribution to the Charity has now passed a landmark of £3million.

Left: The charity-supported Illuminations at the Freeman Hospital

• Players from Newcastle United continued to generously support us and donated £7,326 to our Great North Children’s Hospital Foundation, to provide materials to support children with sensory processing issues.

• Despite facing significant professional challenges, HMS Northumberland continues to support our fund, the Sir Bobby Robson Foundation as their official charity. The Ship’s Company has now raised £1,700 through various challenges on board and movie nights.

As the largest NHS charity in the region, the Charity successfully led a funding bid to the NHS Charities Together Community Partnerships grant programme on behalf of the North East and North Cumbria (NENC) Integrated Care System (ICS).

A total of £1,567,845 was secured for eight two-year community partnership projects that are being delivered by a range of partners from within the NHS and from the charity sector.

The Charity is leading the delivery of the grant programme, working in partnership with County Durham Community Foundation and Cumbria Community Foundation to do so.

The projects that received funding are helping to tackle health inequalities, improve people’s mental health and wellbeing, and offer specialist support to people disproportionately affected by the direct and indirect impacts of COVID-19, across the North East and North Cumbria.

For the second year in a row, the Charity received great support over the festive period from partners who helped to fund a series of projections, illuminations and joyful decorations that brought some muchneeded light and cheer into the lives of staff, patients, and visitors at Newcastle Hospitals. The Charity are especially grateful to Medical Architecture, CAD 21, Geoffrey Robinson Limited, Robertson CE Limited, and Tolent

Construction Ltd who all contributed to the hospitals’ wonderful outdoor illuminations.

In addition to this, 22 local companies participated in a festive fundraising appeal designed to bring some additional seasonal cheer to hospital staff and patients, raising a total of £14,750 to provide decorations on the wards and around the hospitals and to fund seasonal gifts and activities for the patients staying in the hospital over the festive period.

The festive lights were officially switched on at carol services organised at the RVI and Freeman Hospitals with young patients from the Great North Children’s Hospital and ex- Newcastle United player Shola Ameobi carrying out the official switch on.

Above: Oncology Research Nurse, Lesley Hill, and Andrew Haigh, Chief Executive at Newcastle Building Society

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Legacies

Gifts made through legacies and wills enable the Charity to make a significant difference to patients, staff, and the wider community. In 2021/22, income in the form of legacies was once again significant, with gifts totalling £1,821,208 supporting a wide range of areas across the Hospitals.

Most notably:

Structure and Governance

Good governance is fundamental to Newcastle Hospitals Charity’s continued success and enables the charity to manage risks appropriately and deliver charitable activities in compliance with all relevant legislation.

Corporate Trustee

The Newcastle upon Tyne Hospitals NHS Foundation Trust Board of Directors are the sole Corporate Trustee of Newcastle Hospitals Charity. The Board of Directors comprises of 16 voting members and 5 non-voting members.

The Charity’s funds are managed by the Board of Directors of The Newcastle upon Tyne Hospitals NHS Foundation Trust through a committee of the Trust Board, the Charity Committee.

All staff associated with the Charity are employees of the Trust and the policies and procedures set by the Trust are applied to the management of the Charity.

Statement of Trustee’s Responsibilities

The Trustees are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and regulations. Company law requires the Trustees to prepare financial statements for each financial year.

Under that law the Trustees have prepared the financial statements in accordance with United Kingdom Accounting Standards, comprising FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”, and applicable law (United Kingdom Generally Accepted Accounting 26 Practice). Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of the affairs of the charitable company.

In preparing this Annual Report and Accounts, the trustees are required to:

Charitable Objects

The Charity was formed by a Declaration of Trust on 16th July 1996 as The Freeman Group of Hospitals NHS Charity which was amended by a Supplemental Deed dated 17th March 1999 to the Newcastle upon Tyne Hospitals NHS Charity, Registration Number 1057213.

A Supplemental Deed dated 1st February 2016, which applies to the Charity today, refined the Charity’s objects. The Charity is constituted with a sole Corporate Trustee, which is the Newcastle upon Tyne Hospitals NHS Foundation Trust.

With effect from 1st April 2016, the Corporate Trustee was appointed as Trustee of charitable funds formerly held on behalf of the NHS Trust by Newcastle Healthcare Charity (Reg. 502473) under a Scheme formally approved by the Charity Commission for England & Wales on 21st March 2016. The funds were subsequently merged under the umbrella of the Trust’s appointed charitable body, Newcastle upon Tyne Hospitals NHS Charity (Reg. 1057213) and have subsequently formed part of the Charity’s financial accounts from 2016/17 onwards.

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company’s transactions and disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Trustees are responsible for the maintenance and integrity of the charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

The objects of Newcastle Hospitals Charity are restricted specifically to:

• Any charitable purpose or purposes relating to the National Health Service or to general or specific purposes of the Newcastle upon Tyne Hospitals NHS Foundation Trust.

Above: Generous legacies help to support a range of projects across Newcastle Hospitals, such as clinical trials at the Sir Bobby Robson Cancer Trials Research Centre where staff like Sam Steel are hard at work

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The Charity has a code of fundraising practice as follows:

The charity fully adheres to the code of fundraising practice, which sets the standards that apply to fundraising carried out by all charitable institutions and third party fundraisers in the UK.

The generosity of their supporters enables them to enhance and improve the experience of patients and their families, as well as amazing NHS staff, across all of their hospital sites.

Charity Committee

The Charity Committee is a statutory Committee established by the Board of Directors to manage, on behalf of the Board, all charitable funds under the control of the Trust, considering the requirements of the Department of Health and Social Care and the Charity Commission for England and Wales.

The Committee’s membership comprises:

It’s ambition to make the biggest difference, so it promises to make sure our look after its supporters in the best way possible.

We are honest and open

All members of the Committee receive training and development support before joining the committee, and on a continuing basis, to ensure their effectiveness as members, supported by the process of annual appraisal, as agreed by the Board of Directors.

The Charity Committee has an annually reviewed Terms of Reference and meets a minimum of four times per year. Agendas are set for each meeting to enable the Trust Board in its capacity as Corporate Trustee of the charity to be assured that robust processes are in place to enable statutory duties to be discharged, to enable the Trust’s strategic objectives to be met and to address and mitigate risk.

The quorum necessary for the transaction of business will be three members, including at least one Executive and one Non-Executive Director.

We are committed to high standards

We are respectful

Newcastle Hospitals Charity Team

A dedicated team within the Trust provides administrative, financial and fundraising support for the Charity. The Charity does not directly employ staff, the Charity team contracts are with the Newcastle upon Tyne Hospitals NHS Foundation Trust and the Charity is recharged for costs incurred in relation to both staffing and non-pay related expenditure incurred directly in relation to Charity activities.

Donor Care

We will always aim to:

Charity Funds

Following a re-classification of funds agreed by the Charity Commission (January 2018), the Charity now comprises of over three hundred individual unrestricted funds which have been designated for hospital/ward/specialty areas in accordance with donor preference.

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Policy

Risk Management and Internal Control

Principal Risks

Newcastle Hospitals Charity policies and associated procedures are designed to provide guidance that ensures consistent, ethical and professional standards are maintained in relation to charitable donations and fundraising, and that they are compliant with charity law and the regulations and standards set out by the Charity Commission, the Fundraising Regulator and the Healthcare Financial Management Association.

The Corporate Trustee considers the Charity has the necessary practices currently in place to assess Governance, Operational, Financial, External and Compliance risks. This is described in the Risk Management and Internal Control section of this report. In addition, a Risk Register is monitored and maintained which identifies risk areas, the potential impact of these risks and the steps taken to mitigate the risks to the Charity.

All working practices and procedures conform to the Charity Commission’s guidelines and are subject to scrutiny by Internal and External Audits.

The Charity follows Newcastle upon Tyne Hospitals NHS Foundation Trust’s stance and efforts to prevent modern slavery and human trafficking in its supply chain.

The Trust has reviewed and met its requirements in line with Section 54 of the Modern Slavery Act 2015.

The Newcastle Hospitals Charity has adopted The Newcastle upon Tyne NHS Foundation Trust (the Trust) Risk Management Policy and Procedures.

The Risk Management Policy sets out the structures and processes for the identification, evaluation, and control of risk, as well as the system of internal control.

The key elements of the Risk Management Policy are:

Privacy Statement

Newcastle Hospitals Charity are committed to protecting and respecting personal information and always ensure transparency about how data will be used. Newcastle Hospitals Charity is fully compliant with the European General Data Protection Regulation and the UK Data Protection Act 2018.

Newcastle Hospitals Charity has a Privacy Statement, which sets out how they collect and use personal information and why it is important in enabling them to fulfil their charitable objectives. Newcastle Hospitals Charity Privacy Statement is available to read in full on the charity website.

A Charity risk register has been maintained throughout 2021/2022, which records when a risk has been identified, its’ owners, likelihood of occurrence, potential impact, and mitigating action.

The Charity continues to review risks on a quarterly basis. A risk report is presented to the Charity Committee on a quarterly basis to provide assurance that charity risks continue to be managed effectively. The Charity Committee is chaired by a Non-Executive Director and has Trust Board of Directors membership.

Principal Risks

The table overleaf details the top four risks identified in 2021-22, these risks continue to be risks to the achievement of strategic objectives pertinent to 2022-23.

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Principal Risks

Key Controls

There is a risk that the current surfeit within the Charity Accounts could hinder the ability to seek funding from external sources

If the pandemic continues there could be • Active monitoring and management of challenges in fundraising following the charity accounts. change in the Charity Model from reactive • Actively seek COVID-19 safe alternative to proactive which could then impact on fundraising activities and campaigns. future income

Principal Risks

Key Governance principles are not robust enough and may not satisfy the requirement of regulatory good governance

If the charity is unable to achieve Aim Five of the Charity Strategy ‘Efficient and effective charity governance and operations’ there is significant risk that they will be unable to scale up their fundraising and their grant making and therefore they will not achieve the Charity Strategy in its entirety.

Key Controls

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A Look Forward to the Future

The Newcastle Hospitals Charity has adopted a risk appetite statement which shows the amount of risk the Charity is willing to accept in seeking to achieve its Strategic Objectives.

The Charity risk appetite will be reviewed on an annual basis to ensure it consistently reflects the Charity’s current risk position. The Newcastle Hospitals risk appetite statement is shown below.

Key Risk
Category		 Risk
Appetite
Level		 Risk
Tolerance
Score		 Risk
Appetite
Statement
Fundraising Moderate 12-16 We have MODERATE appetite for risk taking
in relation to Charity Fundraising.
We will take measured and considered risk
to optimise fundraising success to allow us to
fund initiatives that tackle health inequalities
and key health issues for the region and
beyond as well as improve patient experience
and staff wellbeing, enhancing care for
patients, and the wider community.
We will not take any fundraising risk that may
affect the reputation of the Charity or result in
a negative return.
Compliance/ Very Low 6-10 We have a VERY LOW risk appetite for
Regulatory risks in relation to regulatory compliance.
We will not take any risk which will impact
on our ability to meet the fundraising
Finance/VfM HIGH 12-16 regulators code of conduct.
We have a HIGH appetite to apply up
to 75% of our reserve in the pursuit of
achieving our mission to be an enabler to
improving the health and wellbeing of the
patients, people and wider communities of
Newcastle Hospitals, providing support for
compassionate and innovative healthcare;
education, research; locally and nationally.
“Helping our hospitals go further”
The Charity Commission states that
reserves should not fall below 12 months’
worth of operating and grant making costs.
For the Newcastle Hospitals Charity this
equates to approximately £6m for the year
2021/2022.

Newcastle Hospitals Charity is an enabler to improving the health and wellbeing of the patients, people and wider communities of Newcastle Hospitals and aims to provide support for compassionate and innovative healthcare, education and research; locally and nationally.

Newcastle Hospitals Charity has developed a Charity Strategy for 2021-2026 which puts people at the heart of all Charity activities and is united with the ambition of the Trust to make a real difference to the health and care of the people across the Trust and beyond. The Charity’s ambition is to strengthen its role as a key partner for the Trust and to increase the impact that it can make on improving the health of its region and beyond.

Working in close partnership with the Trust, the goals of Newcastle Hospitals Charity are to:

Strategic Priorities

In meeting this ambitious new strategy, the Charity will focus on delivering the following strategic priorities:

Strategic Priorities

Delivering an Generate fnancial Fund and Build and Ensure excellent
effective, accessible
grants programme		 support for the
Trust’s fagship		 fundraise for major
projects within the		 strengthen
partnerships with		 governance and
ethical standards
to support Trust wellbeing and Trust, and where key health and of charity practice
improvements
to services and		 recognition
programmes		 the Trust is a key
partner		 VCSE organisations
to deliver greater		 Develop and
resource
the patient
environment		 Generate fnancial
support for staff		 Provide fnancial
support for		 impact.
Establish		 professional,
ethical fundraising
Establish a grant initiatives within cutting edge Newcastle programmes
programme ‘Sustainable clinical research Hospitals Charity as to deliver our
dedicated to Healthcare in and innovation, a regional partner ambition
supporting
patients		 Newcastle’
(SHINE)		 particularly when
there is no other		 for Collaborative
prevention		 Develop brand
to ensure that
and families
experiencing
severe fnancial
diffculty during
their treatment
Establish Arts		 Fund research
fellowship
programme for
staff, supporting
career progression
while supporting		 source widely
available		 initiatives
Support micro-
communities
through
Collaborative
Newcastle to		 our ability to
deliver impact is
understood
Focus fundraising
on initial key
themes:
engagement
programme for
staff and local
community		 the Trust to be at
forefront of health
innovation and
research		 improve health
and wellbeing and
reduce inequalities
Work with the NHS
Charities Together
network to		 •Green and
Healthy Hospitals
•Research and
Innovation
•Child Health
infuence national •Cancer
NHS charity
funding priorities

26

27

Income and Expenditure

Income from all sources was £5.2 million summarised as follows –

Financial Review of 2021/22

This section provides a financial summary of the Newcastle Hospitals Charity for 20212022. A full copy of the audited accounts are included in this report.

During 2021-2022 the value of the Newcastle Hospitals Charity decreased from £39.4 million to £36.7 million.

----- Start of picture text -----
||| |---|---| |£’000| |Fund Value at 01/04/2021|39,351| |Income|5,200| |Expenditure|(11,545)| |Unrealised Gains on Investments|3,684| |Fund Value|36,691|

----- End of picture text -----

Expenditure exceeded income during the year, and the value of the fund decreased, but was offset against the value of the investments which increased by £3.7 million during the year. This continues to be an exceptional outcome and although it reflects a reducing gain on last year’s £6.6 million the stock exchange and economy continues to struggle with the COVID-19 pandemic, and the war in Ukraine. Movement in the value of investments is of course volatile and may well continue to decrease during these difficult times.

----- Start of picture text -----
||| |---|---| |£’000| |Donations|971| |Legacies|1,821| |Grants received|1,015| |Income from fundraising events|246| |Sale of goods (Charlie Bear)|90| |Dividends and interest|1,057| |Total income|5,200|

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Income in 2021-2022 was higher than in 2020/21 (£4.4 million), as there has been an increase in donations, grants received, and the sale of goods in the period, together with a decrease in the income from events. The income in 2021/22 includes income of £1 million from NHS Charities Together.

Legacy income of £1.8m was received (68 bequests) and continues to reflect the esteem and high regard for the levels of care and services provided by the Newcastle Hospitals.

Expenditure was £11.5 million, summarised into broad categories as follows –

----- Start of picture text -----
||| |---|---| |£’000| |Activities to generate income|431| |Purchase of new equipment|1,001| |Patient education and welfare|4,932| |Medical Research|350| |Staff education and welfare|4,830| |Total expenditure|11,545|

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Expenditure in 2021/22 was significantly higher than in 2020/21 (£5.1 million), as there has been an increase in the purchasing of new equipment, and in both patient and staff education and welfare due to a higher value, and volume of grant approvals in this period.

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29

Fund Organisation

The Newcastle Hospitals Charity comprises of 371 individual funds, 3 of which are restricted in purpose and 1 of which is designated for general purposes. The remaining 367 unrestricted funds are linked to individual wards or clinical services, research into clinical areas, and specific schemes/projects in accordance with the wishes of donors and charity objectives.

Investment Policy

The Newcastle Hospitals Charity invests any funds not required immediately for expenditure through portfolios managed by two investment Managers CCLA and BNY Mellon Newton Investment Management thus providing a mechanism for comparing performance and reducing the levels of risk. The CCLA element is held in their Ethical Investment Fund whilst Newton’s is held in their Growth & Income Fund for Charities.

The portfolios are chosen by the Investment Managers and comprise of equities, property, and cash. The equities comprise shareholdings in public companies with stock market quotations; however, both portfolios refrain from the direct investment in companies that derive a substantial amount of their profit from investment in tobacco.

CCLA

This includes the following 3 Restricted Funds:

• The Sir Bobby Robson Foundation which is held to ‘provide assistance to any charitable or public body active in the North East of England which participates in the treatment of/ or research into cancer or which provides care in the community for cancer sufferers and/ or their dependants/carers’

Use of the restricted funds by the Charity Committee is based on the recommendations of Committees connected to those funds. Use of the unrestricted funds is based on applications from members of Trust staff. The application process uses ‘SmartApprove’ which ensures all application requests are assessed. Applicants must be able to demonstrate why it is appropriate to use charity funds in terms of additional benefit or enhancement to the service. This provides an assurance that expenditure from charity is appropriate and can demonstrate benefit to the service. The Committee approves all expenditure over £25,000 with a scheme of delegation to transfer authority to individual Committee Members or other members of staff as appropriate.

The Newcastle Hospitals Charity has a policy of turning-over the balance of any fund in 5 years, staff are encouraged to use at least 20% of the available funds per annum. The Charity can apply to the Charity Commission to re-organise funds that are no longer relevant or cannot be usefully used.

During 2021/22 the Charity considered 301 applications for funding from staff and external partners. That includes a very wide range of proposals some of which will span several years, and funding has been reserved.

The investment objective of the Ethical Investment Fund for the fund is to provide an average return over a business cycle of inflation plus 5%, whilst maintaining income in real terms. The Responsible Investment Policy of CCLA has three strands:

economic returns.

Newton Investment Management Ltd

The objective of the Growth & Income Fund for Charities fund is to generate capital and income growth over a period of 5-7 years by investing at least 70% of the Sub-Fund’s assets in a global portfolio of equities (company shares) and fixed income securities.

Newton’s established Charities team actively manages the fund. There are no investments in derivatives, no underwriting and distributions are made on a quarterly basis.

The Charity’s investment objectives are to take a medium-term view and generate income and growth from low-risk investments. The Investment Managers report to the Charitable Funds Committee quarterly on performance, provide a market review and projection, and make appropriate investment recommendations.

During 2021/22, the Newcastle Hospitals Charity received £1,056k in dividends and interest from investments. That sum has been calculated and allocated as pro-rata to the sum of fund values and commitments held as creditors in the balance sheet.

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Charitable Fund Management Costs

During 2021/22 the Trust employed eighteen whole time equivalent staff whose sole purpose was to generate and manage the charitable funds. The cost of those staff (and associated office costs) was £673k or 1.83% of the aggregate value of the funds.

The Charitable Fund management cost includes £12k for external audit fees.

The Charitable Fund Management Costs are allocated between funds as follows – a fixed 1% (of income) against the Sir Bobby Robson Fund, then as pro-rata to the sum of fund values and commitments held as creditors in the balance sheet for the other three restricted funds, and the balance against the general purposes fund.

Principal Professional Advisors

Investment Management

Bankers

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

HSBC PLC, 110 Grey Street, Newcastle upon Tyne, NE1 6JG

Yorkshire Bank, Quayside House, 110, Quayside, Newcastle upon Tyne, NE1 3DX

Barclays Bank PLC 71 Grey Street, Newcastle upon Tyne NE99 1JA

External Auditors

Internal Audit

Counter Fraud Services

Solicitors

Mazars LLP, Bank Chambers,26 Mosley Street,

Newcastle, NE1 1DF

AuditOne, Northumbria House, Unit 7/8 Silver Fox

Way, Cobalt Business Park, Newcastle upon Tyne, NE27 0QJ

Corporate Finance, Regent Point, Regent Farm Road, Gosforth, Newcastle upon Tyne NE3 3HD

Withers LLP 16 Old Bailey, London EC4M 7EG

Registered Charity Name and Number

Newcastle upon Tyne Hospitals NHS Charity (1057213)

Registered Address Charity Office Peacock Hall Royal Victoria Infirmary Newcastle upon Tyne NE1 4LP

Telephone: Website:

0191 2231434

https://charity.newcastle-hospitals.nhs.uk/

Jill Baker (Non-Executive Director) Date: 4th November 2022

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NEWCASTLE UPON TYNE HOSPITALS NHS CHARITY (Reg. 1057213)

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2022

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||||||| |---|---|---|---|---|---| |NOTE|2022|2022|2022|2021| |Unrestricted|restricted|Total|Total| |£000|£000|£000|£000| |INCOME from:| |Donations & Legacies|4-5|1,764|1,274|3,038|2,173| |Other Trading Activities|43|47|90|470| |Investments|14 (d)|708|349|1,057|961| |Grants Received|6|0|1,015|1,015|776| |Total Income|2,515|2,685|5,200|4,380| |EXPENDITURE on:| |Generating Income|9|322|109|431|370| |Charitable Activities:|10| |Purchase of new Equipment|998|3|1,001|404| |Patient Education and Welfare|4,587|345|4,932|3,376| |Medical Research|339|11|350|323| |Staff Education and Welfare|3,788|1,042|4,830|669| |Total Expenditure|10,034|1,510|11,544|5,142| |Net Income/(Expenditure)|(7,519)|1,175|(6,344)|(762)| |Net Gain on Revaluation of Property|13|0|0|0|0| |Net Gains/(Losses) on Investments|14 (a)|2,468|1,216|3,684|6,556| |Net Movement in Funds|(5,051)|2,391|(2,660)|5,794| |Reconciliation of Funds| |Total Funds brought forward|3(a)&3(c)|28,991|10,360|39,351|33,557| |Total Funds carried forward|3(a)&3(c)|23,940|12,751|36,691|39,351|

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NEWCASTLE UPON TYNE HOSPITALS NHS CHARITY (Reg. 1057213)

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2022

----- Start of picture text -----
||||||| |---|---|---|---|---|---| |NOTE|2022|2022|2022|2021| |Unrestricted|restricted|Total|Total| |£000|£000|£000|£000| |Fixed Assets| |Property|13|0|0|0|0| |Investments|14|29,943|12,124|42,067|38,383| |Total Fixed Assets|29,943|12,124|42,067|38,383| |Current Assets| |Stocks and work in progress|38|5|43|36| |Debtors|15|213|87|300|299| |Cash and Cash Equivalents|16|5,695|4,375|10,070|9,598| |Total Current Assets|5,946|4,467|10,413|9,933| |Creditors: Amounts falling due|17|(7,345)|(2,927)|(10,272)|(6,404)| |within one year| |Net Current Assets/(Liabilities)|(1,399)|1,540|141|3,529| |Total assets less current liabilities|28,544|13,664|42,208|41,912| |Creditors: Amounts falling due|17|(4,604)|(913)|(5,517)|(2,561)| |after more than one year| |Net Assets|23,940|12,751|36,691|39,351| |Total Charity Funds|3(b) & 3(d)|23,940|12,751|36,691|39,351|

----- End of picture text -----

The notes on Pages 40 to 50 are an integral part of these financial statements

The financial statements on pages 37 to 50 were approved by the Trustees on 4 November 2022 and signed on its behalf by

Jill Baker (Non-Executive Director)

All of the amounts relate to continuing activities.

The charity has no recognised gains and losses other than those included in the results above, and therefore no separate statement of recognised gains and losses has been presented.

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35

NEWCASTLE UPON TYNE HOSPITALS NHS CHARITY (Reg. 1057213)

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2022

NEWCASTLE UPON TYNE HOSPITALS NHS CHARITY (Reg. 1057213) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

The Trustee (Newcastle upon Tyne Hospitals NHS Foundation Trust) is the ultimate parent and controlling party

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|||||| |---|---|---|---|---| |2022|2022|2022|2021| |Unrestricted|restricted|Total|Total| |£000|£000|£000|£000| |Net operating income / (expenditure)|(5,051)|2,390|(2,661)|5,794| |Adjustment for non-cash transactions|0|0|0|0| |- depreciation, amortisation and net| |impairments| |(Increase)/decrease in debtors|26|(27)|(1)|121| |Increase/(decrease) in creditors|6,742|83|6,825|2,051| |Dividends, interest and rents from|(708)|(349)|(1,057)|(961)| |investments| |(Gains)/losses on investments|(2,468)|(1,216)|(3,684)|(6,556)| |Other operating cash flows|(14)|7|(7)|(11)| |Net cash generating from / (used|(1,473)|888|(585)|438| |in) operations| |Cash flows from investing| |activities:| |Dividends, interest and rents from|708|349|1,057|961| |investments| |Net cash generating from / (used|708|349|1,057|961| |in) investing activities| |Net cash generating from / (used|0|0|0|0| |in) financing activities| |Change in cash and cash|(765)|1,237|472|1,399| |equivalents in the reporting period| |Cash and cash equivalents at the|6,460|3,138|9,598|8,200| |beginning of the reporting period| |Cash and cash equivalents at the|5,695|4,375|10,070|9,598|

----- End of picture text -----

Cash and cash equivalents at the end of the reporting period

GENERAL INFORMATION

The Newcastle upon Tyne Hospitals NHS Charity is registered as a Charity under the Charities Act 2011. The address of its registered office is: Charitable Funds Office, Peacock Hall, Royal Victoria Infirmary, Newcastle upon Tyne, NE3 4LP.

1

Basis of preparation

(a)

These financial statements have been prepared under the historical cost convention as modified by the inclusion of investments at market value, in accordance with the ‘Accounting and Reporting by Charities: Statement of Recommended

Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)’ effective from 1st January 2015.

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

FRS 102 allows a qualifying entity certain disclosure exemptions, subject to certain conditions, which have been complied with, including notification of, and no objection from, the Charity Trustee.

The charity constitutes a public benefit entity as defined by FRS 102.

The Trustee considers that there are no material uncertainties about the Charity’s ability to continue as a going concern.

The uncertain economic outlook and the variability in income from donations and legacies year-to-year, represents a significant area of financial uncertainty for the Charity. These represented 58% of income in 2021/22 (50% in 2020/21). The Charity mitigates this risk through maintaining diversity in its income streams and upholding expenditure authorisation controls to prevent over-commitment of Funds, therefore this is not anticipated to represent a risk to going concern.

The Charity’s functional and presentation currency is the pound sterling.

A significant area of uncertainty that affects the carrying value of assets held by the Charity is the performance of investment markets. The Charity holds fixed asset investments which were valued at £42,067k at 31 March 2022, which represented an increase in value of £3,684k from £38,383k at 31 March 2021. Income from investments in 2021/22 was £1,056k and is an increase of £95k compared to £961k in 2020/21. The Charity utilises Investment advisors and regularly reviews their performance in line with the Charity Investment Policy.

The Accounts include investments valued at market value at 31st March. That valuation was undertaken by the Charity’s Investment Advisors.

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

Funds structure

Where there is a legal restriction on the purpose to which a fund may be put, the fund is classified in the financial statements as a restricted fund. Other funds are classified as unrestricted funds. Funds which are not legally restricted but which the

Trustee has chosen to earmark for set purposes are designated funds. The major funds held within these categories are disclosed in note 18.

Income

i) entitlement - arises when a particular resource is receivable or the charity’s right becomes legally enforceable;

ii) probable - when it is more likely than not that the income will be received;

iii) measurement - when the monetary value of the income can be measured with sufficient reliability and the costs incurred for the transaction can be measured reliably.

Income-legacies

(d)

Legacies are accounted for as income once the receipt of the legacy becomes probable or are within the control of the Charity. This will be once confirmation has been received from the representatives of the estate that payment of the legacy will be made or property transferred and once all conditions attached to the legacy have been fulfilled.

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37

(e ) Expenditure

The funds held on trust accounts are prepared in accordance with the accruals concept. All expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party.

Grants payable are payments, made to third parties (including NHS bodies) in the furtherance of the Funds held on Trust’s charitable objectives wholly or mainly for the service provided by the Newcastle upon Tyne Hospitals NHS Foundation Trust (patient welfare, staff welfare, equipment and research). They are accounted for on an accruals basis where the conditions for their payment have been met or where a third party has a reasonable expectation that they will receive the grant.

(f) Allocation of overhead and support costs

Support costs and overhead charges from The Newcastle upon Tyne Hospitals NHS Foundation Trust are allocated as direct costs or apportioned on an appropriate basis. The cost attributable to Charitable Activities are calculated as pro-rata to the sum of fund values and commitments held as creditors in the balance sheet.

(g) Expenditure on Generating Income

These are costs associated with generating income for funds held on Trust and include the Charity’s Director, Fundraising Manager and Communication/Development Officer and costs relating specifically to the Charlie Bear & Sir Bobby Robson Foundation. There are no direct investment management costs levied by CCLA Investment Management and Newton’s Investment Management for administering the units, as management charges are absorbed by the overall fund, of which the charity holds a share.

(h) Governance costs

Governance costs are those costs incurred in the governance of the charity, including statutory audit. These are now split between expenditure on raising funds and support costs. There is no effect on the total expenditure for 2021/22 or 2020/21. (See Note 9 )

(i) Fixed Asset Property

The charity does not own any fixed assets.

(j) Fixed Asset Investment

2 Related Party Transactions

The Trust Board of The Newcastle upon Tyne Hospitals NHS Foundation Trust acts as Corporate Trustee for The Newcastle upon Tyne Hospitals Charity. The principal purpose of Newcastle upon Tyne Hospitals NHS Foundation Trust is the provision of NHS healthcare. The charitable trust has made revenue and capital payments to The Newcastle upon Tyne Hospitals NHS

Foundation Trust. During the year none of the members of the Corporate Trustee Board, key management staff or parties related to them has undertaken any material transactions with the Newcastle upon Tyne Hospitals Charity. During the financial year payments of £4,401k (2020/21: £3,101k) were made to the Newcastle upon Tyne

Hospitals NHS Foundation Trust in respect of grants and other charges made to the Trust. A further sum of £1100k was due for payment at 31st March 2022 (This was £290k in 2020/21).

These charges made by Newcastle upon Tyne Hospitals NHS Foundation Trust (£568k) for administrative support and overheads, include the provision of staff and office accommodation and are included in the figure above, which enables the charity to fulfil its statutory duties and provide support for the day-to-day running of the charity (£283k 2020/21).

The Newcastle upon Tyne Hospitals NHS Foundation Trust is the ultimate parent entity as Corporate Trustee. The Corporate Trustee maintains control of the Charity via a Committee - the Charitable Funds Committee - which comprises executive and non-executive Directors of the Trust.

The consolidated accounts of Newcastle upon Tyne Hospitals NHS Foundation Trust are available from: Charitable Funds (Finance) Office, Regent Point, Regent Farm Road, Newcastle upon Tyne, NE3 3HD.

There were no expenses or remuneration paid to the Trustees during the year (2020-21 Nil).

There were no transactions with Trustees or connected persons for the year to 31st March 2022 (2020-21 Nil). No indemnity insurance was provided to the Trustees in the year to 31st March 2022 (2020-21 Nil).

There were no loans or guarantees secured against assets of the Charity in the year to 31st March 2022 (2020-21 Nil).

Investments are a form of basic financial instrument. They are recognised initially at their transaction value and subsequently at their fair value (market value) as at the Balance Sheet date.

All gains and losses are taken to the Statement of Financial Activities as they arise. Realised gains and losses on investments are calculated as the difference between sale proceeds and opening market value (or date of purchase if later). Unrealised gains and losses are calculated as pro-rata to the sum of fund values and commitments held as creditors in the balance sheet. Market value is reflected in the Balance Sheet as quoted by the investment manager.

There is no official pooling scheme operated for investments.

Stocks are valued at the lower of cost and net realisable value.

(n) Cash and cash equivalents

Cash and cash equivalents includes cash in hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less and bank overdrafts.

Previously investments held in a 90-day access savings account and money-master held accounts had been shown on the face of the balance sheet. As they are very liquid funds they are classified as cash equivalents and are shown as part of cash & cash equivalents on the balance sheet. There is no impact on the total funds of the charity and an analysis of cash and cash equivalents is provided in Note 16.

(o) Debtors

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

Creditors are amounts owed by the charity. They are measured at the amount that the charity expects to have to pay to settle the debt. Amounts which are owed in more than one year are shown as long-term creditors.

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39

NEWCASTLE UPON TYNE HOSPITALS NHS CHARITY (Reg. 1057213) STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2022

----- Start of picture text -----
2022 2021
£000 £000
----- End of picture text -----

3(a) UNRESTRICTED FUNDS-Statement of Financial Activity for the Year ended 31st March 2022

1,764 1,712
43 218
708 725
0 191
2,515 2,846
322 257
998 404
4,587 2,739
339 914
3,788 119
10,034 4,433
(7,519) (1,587)
0 0
2,468 4,950
(5,051) 3,363
28,991 25,627
23,940 28,990

INCOME

Donations & Legacies Other Trading Activities Investments

Grants Received

Total Income

EXPENDITURE

Generating Income Charitable Activities: Purchase of new Equipment Patient Education and Welfare Medical Research Staff Education and Welfare

Total Expenditure Net (Expenditure)/Income

Net Gain on Revaluation of Property Net Gains (Losses) on Investments Net Movement in Funds

Fund Balances Brought Forward

Total Funds Carried Forward

3(b) UNRESTRICTED FUNDS-Balance Sheet as at 31st March 2022 2022
£000		 2021
£000
Fixed Assets
Tangible Assets 0 0
Investments 29,943 27,474
Total Fixed Assets 29,943 27,474
Current Assets
Stocks and work in progress 38 25
Debtors 213 239
Cash and Cash Equivalents 5,695 6,460
Total Current Assets 5,946 6,724
Creditors: Amounts falling due within one year (7,345) (4,048)
Net Current Assets/(Liabilities) (1,399) 2,676
Total assets less current liabilities 28,544 30,150
Creditors: Amounts falling due after more than one year (4,604) (1,160)
Net Assets 23,940 28,990
Total Charity Funds 23,940 28,990
(c) RESTRICTED FUNDS-Statement of Financial Activity
for the Year ended 31st March 2022		 2022
£000		 2021
£000
INCOME
Donations & Legacies 1,274 461
Other Trading Activities 47 252
Investments 349 236
Grants Received 1,015 585
Total Income 2,685 1,534
EXPENDITURE
Generating Income 109 113
Charitable Activities:
Purchase of new Equipment 3 0
Patient Education and Welfare 345 637
Medical Research 11 (591)
Staff Education and Welfare 1,042 550
Total Expenditure 1,510 709
Net Income (Expenditure) 1,175 825
Net Gains (Losses) on Investments 1,216 1,606
Net Movement in Funds 2,391 2,431
Fund Balances Brought Forward 10,360 7,930
Total Funds Carried Forward 12,751 10,361
3(d) RESTRICTED FUNDS-Balance Sheet as at 31st March 2022 2022
£000		 2021
£000
Fixed Assets
Investments 12,124 10,909
Total Fixed Assets 12,124 10,909
Current Assets
Stocks and work in progress 5 11
Debtors 87 60
Cash and Cash Equivalents 4,375 3,138
Short term Investments and Deposits
Total Current Assets 4,467 3,209
Creditors: Amounts falling due within one year (2,927) (2,356)
Net Current Assets/(Liabilities) 1,540 853
Total assets less current liabilities 13,664 11,762
Creditors: Amounts falling due after more than one year (913) (1,401)
Net Assets 12,751 10,361
Total Charity Funds 12,751 10,361

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41

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|||| |---|---|---| |4 Donations|2022|2021| |£000|£000| |General Purposes|810|310| |Charlie Bear|33|20| |Sir Bobby Robson Foundation|375|16| |Total|1,218|346|

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

----- Start of picture text -----
|||| |---|---|---| |5 Legacies|2022|2021| |£000|£000| |General Purposes|954|1,402| |Charlie Bear|14|23| |Sir Bobby Robson Foundation|853|16| |Total|1,219|1,827|

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Legacies are gifts included in wills, which are for the benefit of services within the charity’s local hospitals.

6 Grants received

In this Financial year a grant totalling £1,015k was received. The Charity received £1,015k from NHS Charities Together to help with COVID-19 recovery and wellbeing of the staff at the Trust.

7 Donated Facilities and Services, including Volunteers

The Charity recognises the contribution of volunteers who supplement the Reatail Manager in the Freeman NHC Shop, the Charlie Bear Shop, and the GNCH Pop up stand. It also notes the contribution at charitable events, such as Great North Run, NHS Big Tea Party, and the Christmas Lights switch on. However the lack of a reliable method of measuring, and the volume of volunteers used, has meant that this contribution is not financially recognised in the accounts.

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|||||| |---|---|---|---|---| |2022|2022|2022|Total| |8 Movements in funding commitments|Current|Non- Current|Total| |Liabilities|Liabilities| |£000|£000|£000|£000| |Opening balance at 1st April|6,404|2,561|8,965|6,626| |Additional commitments made during the year|5,539|4,146|9,685|5,348| |Amounts paid during the year|(1,671)|(1,190)|(2,861)|(3,009)| |Closing balance at 31st March|10,272|5,517|15,789|8,965|

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9 Allocation of Overhead and Support Costs

Support and overhead costs have been analysed to identify

Costs of Generating Income:

Apportioned across all funds as pro-rata to the sum of fund values and commitments held as creditors in the balance sheet throughout 2020-21 activities

Apportioned across all funds as pro-rata to the sum of fund values and commitments held as creditors in the balance sheet in support of charitable activities

Costs in Support of Charitable Activities:

Bought-in services from NHS includes Internal Audit and a recharge from The Newcastle upon Tyne Hospitals NHS Foundation Trust for finance support and overheads.

The Auditor’s remuneration of £12k (2021:£12k) related solely to the year-end audit with no additional work being undertaken. There were other governance costs of £690 (2021:£4k) relating to Governance Support workshops.

There are no staff employed directly by the charity, the Charity purchases services from Newcastleupon-Tyne NHS Foundation Trust. In the following table the bought-in NHS salaries includes employer’s national insurance and pension contributions.

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|||||| |---|---|---|---|---| |2022|2022|2022|2021| |Costs of|Costs in|Total|Total| |Generating|Support of| |Income|Charitable| |Activities| |£000|£000|£000|£000| |Auditors’ Remuneration - Audit Fees|0|12|12|12| |Other Fees & Services|66|36|102|46| |Bought-in services from NHS-Salaries|272|347|619|433| |Bought-in services from NHS-Accommodation/|0|54|54|55| |Office/IT| |Goods for Resale|32|0|32|15| |Promotion/Publicity/Events|56|0|56|82| |Bank Charges|0|4|4|1| |Miscellaneous|5|0|5|10| |Total|431|453|884|654|

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|||||| |---|---|---|---|---| |10 Charitable Activities|2002|2022|2022|2021| |Grant|Support|Total|Total| |Funded|Costs| |Activities| |£000|£000|£000|£000| |Purchase of new Equipment|961|41|1,002|404| |Patient Education and Welfare|4,732|201|4,932|3,376| |Medical Research|335|15|350|323| |Staff Education and Welfare|4,633|197|4,830|669| |Total Grants Payable|10,660|453|11,113|4,772|

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Grants are made in support of services provided by the Newcastle upon Tyne Hospital NHS Foundation Trust, with the exception of sixteen awards to:

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2022 2021
£000 £000
38,383 31,827
0 0
3,684 6,556
42,067 38,383
20,807 20,807
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14 Fixed Asset Investments

a) Movement in Fixed Asset Investments Market Value at 1 April 2021 Add Acquisitions at Cost Net gain/(loss) on Revaluation Market Value at 31 March 2022 Historic Cost at 31 March 2022

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2002 2022 Held 2022 2021
b) Fixed Asset Investments Units/Shares Held in UK Outside UK Total Total
Held
£000 £000 £000 £000
Investments in a Common
Investment Fund 6,922,990 20,550 0 20,550 18,886
Investments Listed 12,580,258 21,517 0 21,517 19,497
on Stock Exchange
Total 19,503,247 42,067 0 42,067 38,383
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c) Cash and Cash equivalents

A sum of £10,070k (2020/21: £9,568k) is held between a HSBC Moneymaster Deposit Account, Yorkshire Bank Deposit Account, Barclays Current Account and a Barclays Business Savings Account.

11 Analysis of Grants

All grants are made directly to The Newcastle upon Tyne Hospitals NHS Foundation Trust via a scheme of delegation operated by the Corporate Trustee.

• All grant funded activity by fund advisors in accordance with standing orders and financial instructions.

12 Analysis of Staff Costs/Pension Contributions

There are no staff employed directly by the charity, the Charity purchases services from Newcastle-upon-Tyne NHS Foundation Trust. Within the staff employed to provide a service to the Charity, the Trust employs one member of staff with a salary over £60k (cost in 2021/22 was in the band £110k to £120k).

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d) Analysis of Gross Income 2022 Held 2022 2021
from Investments Held in UK Outside UK Total Total
£000 £000 £000 £000
Investments in a Common Investment Fund 586 0 586 576
Other Investments (HSBC & Yorkshire Bank Interest) 4 0 4 11
Investments Listed on Stock Exchange 467 0 467 368
Interest from Treasury Deposit /Business 0 0 0 6
Premium Account
Total Income from Investments 1,057 0 1,057 961
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13 Fixed Asset Property

The Charity does not hold any Freehold Land & Buildings.

Dividend income totalled £1,052k in 2021/22 (£944k in 2020/21)

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----- Start of picture text -----
2022 2021
£000 £000
300 299
300 299
2022 2021
£000 £000
1,012 804
9,058 8,794
10,070 9,598
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15 Debtors

Amounts falling due within one year: Prepayments and Accrued Income Total

16 Analysis of cash and cash equivalents

Cash at Bank and in Hand Notice Deposits (less than 3 months)

Cash deposits are split between an HSBC Moneymaster, a Yorkshire Bank (95 day Notice Account) and a Barclays Business Savings Account to primarily reflect the Trustees decision to hold liquid funds to meet grant expenditure incurred initially by the Newcastle upon Tyne Hospitals NHS Foundation Trust.

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17 Creditors 2022 2021
£000 £000
Amounts falling due within one year :
Trade Creditors * 1100 297
Accruals and deferred income # 9,172 6,107
Total 10,272 6,404
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2022 2021
£000 £000
5,517 2,561
5,517 2,561
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Amounts falling due within one year: Accruals and deferred income # Total

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18 Balance 1st Income Expenditure Transfers Gains and Balance 31st
April 2021 Losses March 2022
Analysis of
Charitable Funds £000 £000 £000 £000 £000 £000
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|||||||| |---|---|---|---|---|---|---| |RESTRICTED FUNDS| |Sir Bobby Robson|8,679|1,538|(226)|0|1,085|11,076| |Foundation| |Charlie Bear|795|123|(236)|0|100|782| |Children’s Services|894|9|(22)|0|31|912| |(Fleming/Watson Fund)| |NHS Charities Together|(8)|1,015|(1,026)|0|0|(19)| |Total|10,360|2,685|(1,510)|0|1,216|12,751|

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|||||||| |---|---|---|---|---|---|---| |Balance 1st|Income|Expenditure|Transfers|Gains and|Balance 31st| |April 2021|Losses|March 2022| |£000|£000|£000|£000|£000|£000| |RESTRICTED FUNDS| |General Purposes|28,991|2,515|(10,034)|0|2,468|23,940| |Total|28,991|2,515|(10,034)|0|2,468|23,940|

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Balance 1st Income Expenditure Transfers Gains and Balance 31st
April 2021 Losses March 2022
£000 £000 £000 £000 £000 £000
39,351 5,200 (11,544) 0 3,684 36,691
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TOTAL FUNDS

Notes:

19 Events After The Reporting Period

There were no significant events after the reporting period.

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Independent auditor’s report to the Corporate Trustee of Newcastle upon Tyne Hospitals NHS Charity

Opinion

We have audited the financial statements of Newcastle upon Tyne Hospitals NHS Charity (the ‘charity’) for the year ended 31 March 2022 which comprise the Statement of Financial Activities, the Balance Sheet, the 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:

Basis for opinion

Other information

The other information comprises the information included in the Charity 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 Charity Annual 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:

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.

Responsibilities of Trustees

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.

As explained more fully in the statement of trustee’s responsibilities set out on page 23, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as 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 trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.

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Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

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 sector, we considered that non-compliance with the following laws and regulations might have a material effect on the financial statements: employment regulation, health and safety regulation, anti-money laundering regulation, non-compliance with implementation of government support schemes relating to COVID-19.

To help us identify instances of non-compliance with these laws and regulations, and in identifying and assessing the risks of material misstatement in respect to non-compliance, our procedures included, but were not limited to:

We also considered those laws and regulations that have a direct effect on the preparation of the financial statements, such as tax legislation, pension legislation, the Companies Act 2006, the Charities Act 2011 and the Charities Statement of Recommended Practice.

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

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

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:

Nicola Wakefield, for and on behalf of Mazars LLP

Chartered Accountants and Statutory Auditor

The Corner

Bank Chambers

26 Mosley Street

Newcastle upon Tyne

NE1 1DF

Date: Nov 10, 2022

Mazars LLP 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.

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Contact us

Newcastle Hospitals Charity, Peacock Hall, Royal Victoria Infirmary, Newcastle upon Tyne, NE1 4LP

E: nuth.charity@nhs.net | T: 0191 213 7235

charity.newcastle-hospitals.nhs.uk/

instagram.com/newcastle_nhs/

facebook.com/NewcastleHospitalsCharity

Charity Reg. 1057213

twitter.com/Newcastle_NHS