**Newcastle Hospitals Charity Annual Report and Accounts** 

**2022-2023** 




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Contents<br>A Message from the Chair and Charity Director Pg 3<br>Newcastle Hospitals Charity – Who we are Pg 4<br>Review of the year  Pg 5-9<br>Structure and governance Pg 10<br>A look forward Pg 21<br>Financial review of the year  Pg 22<br>Annual Accounts 2022/23  Pg 28<br>Independent auditor’s report  Pg 42<br>**----- End of picture text -----**<br>


## **A message from the Chair and Charity Director** 

**We are delighted to be able to reflect on another year in the life of Newcastle Hospitals Charity. A year where, thanks to the generosity of our supporters and fundraisers, we have been able to support more than 700 individual projects, with a total value of more than £7,000,000, in furthering our aim to improve the health and wellbeing of the patients, people and the wider communities of Newcastle Hospitals.** 

Thanks to our amazing supporters, donors and fundraisers we have been able to fund projects such as a state-of-the-art robotics system; direct access to social welfare advice services to families at GNCH; a Wudu ritual wash facility at the Freeman; complementary therapies at the NCCC and many, many more. 

We have also grown our dedicated charity team this year, building capacity to support and engage volunteers and the local community, and to raise awareness and income from national funders. 

Looking forward, Newcastle Hospitals Charity will continue to work in partnership with Newcastle Hospitals to complement their world-class healthcare services. Building on what has already been achieved, the Charity’s ambition is to further strengthen its role as a key partner for the Trust and to increase the impact that it can make on improving the health of the region and beyond. 

During the last year we have continued to grow our Arts Programme, increasing our reach to Newcastle Hospitals staff, patients, visitors and wider community, by engaging with over sixty-five thousand people. With over 70 creative engagement sessions, within Trust sites and in community settings, we have been able to offer activities such as photography, printmaking, pottery, drawing, painting and a range of live music. 

We remain incredibly grateful to every single supporter of Newcastle Hospitals Charity, and we are committed to delivering our future strategy to continue making a positive difference for the patients, staff and communities of Newcastle Hospitals. 

In 2022-23 we worked with more external partners than ever before, supporting 14 charities, and building on our ongoing partnerships with organisations including Medicinema, Newcastle Carers and the Newcastle United Foundation. We also held our inaugural Charity Forum, a friendly, informal session to exchange experiences, learning and ideas and to discuss collaborations with other charities in the healthcare sector who support Newcastle Hospitals. 


**With all the very best** 



**Jill Baker** Charity Committee Chair 

**Teri Bayliss** Charity Director 

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## **Review of the year** 

## **Who we are** 

Newcastle Hospitals Charity is the official charity for Newcastle Hospitals, which includes the Royal Victoria Infirmary, the Freeman Hospital, the Northern Centre for Cancer Care and many community services. 

Our overall objective 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.” 

We have a set of aims, which benefit the public through our support for Newcastle Hospitals (‘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 2022/23, our main aim has been to provide funding for a range of initiatives that support the health of the Trusts’ community by continually enhancing the excellent patient care and experience across the hospitals and beyond. This includes providing additional equipment; supporting staff and their development; funding new and innovative research projects and working in partnership with other organisations to support community health initiatives. To achieve this aim we continue to support: 

- l **the purchase of equipment for use in patient care and treatment** 

- l **projects and initiatives aimed at making the patient stay in hospital as comfortable as possible** 

- l **staff training and development which ultimately translates into better care and treatment for patients** 

- l **medical research that aims to increase the knowledge and understanding of a range of illnesses/diseases and ultimately to provide cures or better treatment for patients** 

- l **working in partnership to tackle health inequalities.** 

Newcastle Hospitals Charity is honoured to have continued to support the NHS as well as the patients, staff, and wider communities of Newcastle Hospitals throughout 2022/23. This could not have been done without the brilliant support from all of our donors, fundraisers, partners and supporters. 

such as photography, printmaking, pottery, drawing, painting and a range of live music. The Arts Programme has included visual arts exhibitions across Trust sites and worked with the Trust’s estates teams to commission significant art installations. 

This year has also seen the beginning of a strategic partnership between the Arts Programme and the city parks authority, Urban Green Newcastle, through an innovative project, Springbank Pavilion in Leazes Park. Together with local arts organisations, Chili Studios, Curious Arts and GemArts, the Arts programme has funded free artist-led workshops that all centre around creative practice in nature. 

Partnership working continues to be an important part of our strategy and, while a large proportion of the funding we have provided has been awarded within the Trust, we are growing partnerships with external organisations who make a real difference to the lives of people while they are in hospital and when they are at home. These partnerships include Radio Tyneside, Northumbria Blood Bikes, The Children’s Foundation, Deaflink, Transplant Sport UK, Healthworks, Coping With Cancer, Blue Sky Trust and Citizens Advice Gateshead. 

Live music has returned to Newcastle Hospitals sites too, through a partnership for bedside musicians, with Music in Hospitals and Care, and pop-up performances from an orchestra and choirs have filled hospital sites with soothing sounds and brought moments of collective joy. 

The Newcastle Hospitals Charity Arts Programme, one of our key strategic priorities, has continued to grow this year, increasing its reach to Trust staff, patients, visitors and the wider community, by engaging over sixty-five thousand people. 

Over the course of the year we have supported more than 700 individual projects, with a total value of more than £7,000,000, all in line with the mission to improve the health and wellbeing of the patients, people and wider communities of Newcastle Hospitals. 

With over 70 creative engagement sessions, in Trust sites and community settings, the Arts Programme has offered activities 

All support has been directly linked to our three strategic goals: 

**1. Improve the patient and visitor experience, enhancing care for patients and the wider community.** 

**2. Improve staff health, wellbeing, and development.** 

**3. Tackle health inequalities and key health issues for the region and nationally.** 


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(30.8%)<br>(56.1%)<br>13.1%)<br>**----- End of picture text -----**<br>


- Improve the patient and visitor experience, enhancing care for patients and the wider community **£3,926,936.68 (56.1%)** 

- Improve staff health, wellbeing and development **£919,615.76 (13.1%)** 

- Tackle health inequalities and key health issues for our region and nationally **£2,155,208.03 (30.8%)** 

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**In 2022/23 we have been able to provide support ranging from £10 for a festive gift for a patient to nearly £2m for a new state-of-the-art surgical robot. Just some examples include:** 

## **Charity supporters** 

**£1,944,257** to purchase an additional surgical robotics system 

**£353,148** to fund complimentary therapies at the Northern Centre for Cancer Care 

**£15,728** to fund activities for the Grafters Club, including trips and a party 

**£302,811** to re-fund training posts at the Sir Bobby Robson Cancer Trials Research Centre 

**£7,293.82** to create a Wudu ritual wash facility at the Freeman Hospital chapel 

**£4,784** towards the Great North Children’s Hospital Singers, a group for staff, past and present and volunteers 

**£523,739.78** to support the work of the voluntary and community sector 

**£129,059** for research into socioeconomic inequalities in lung cancer treatment in the North East 

**£52,850** for a study of patients’ experience of rehabilitation following major trauma 

**£31,584** for the Rheumatoid Arthritis and Muscle (RAMUS) Laboratory Study 

**We are incredibly grateful to the continued and very generous support of our many supporters throughout 2022/23. Below are just some highlights of the amazing commitment that our supporters have shown throughout 2022/23.** 

## **Community fundraising** 

**We are lucky to have some incredible supporters within the local community, and this period has seen more successful community fundraising, examples include:** 


- After Sam Johnson passed away following a tragic accident last year, his friends and family were determined to raise funds for the RVI, where he received critical care. They kindly raised more than £10,000 for Newcastle Hospitals Charity in his memory – which will make a huge difference and be an amazing legacy for Sam. 


- Evie, aged 9, raised £1,175 for the Newcastle Scoliosis Fund, part of Newcastle Hospitals Charity. Evie, who has scoliosis herself, raised the funds by completing a month-long gymnastics challenge. 


- The Ponteland Rotary Club raised £3,000 for The Great North Children’s Hospital Foundation at their annual duck race event. 



- Neil Winn, a patient at the Freeman Hospital, raised £9,000 for the Orthopaedic and Rheumatology team on Ward 20 at the Freeman Hospital. Neil held a pie and peas fundraiser with an auction, to raise funds in thanks to the staff who supported him during his six-month stay in hospital. 


- Demi-Jade and Keiran raised over £14,000 for the Fetal Medicine Unit at the RVI, in memory of their son Rex who was sadly stillborn. They chose to fundraise with a charity night and auction ‘to help fund research to help no one else go through what we have.’ 


- The Jackson family donated £750 to benefit staff wellbeing initiatives on Ward 18 of the RVI, in memory of Christine Jackson who sadly passed away on the ward on Christmas Eve. 



- **£1,510** to support a health inequalities collaboration study day 

**To read more about these, please see our new impact report.** 

- Friends of Evie raised £2,033 taking on a Tough Mudder challenge to benefit Ward 4 at the Great North Children’s Hospital in memory of Evie. Evie sadly died at age 20 following diagnosis of a brain tumour in 2016 having undergone extensive treatment at the GNCH. 


- St. Mary and St. Thomas Aquinas Catholic Primary School raised £519 for the Charity during Children in Need by coming to school dressed in bright colours, and by hosting fundraising games. Members of the Charity team visited the school to give an assembly about the work of Newcastle Hospitals Charity. 

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## **Individual supporters** 

## **As well as the thoughtful and committed community fundraisers who support our work, individual donors play a huge role in helping to make a real difference.** 

Thanks in part to an exceptionally generous donation we were able to commit £1,944,257 of funding to purchase an additional surgical robotics system. The new da Vinci surgical system is now in place at the Freeman Hospital and patients undergoing a wide range of procedures (including urological, thoracic, ENT, and gynaecological operations) are already benefiting from this state-of-the-art equipment. 

Chris Wright, Director of Operations, Newcastle Hospitals Surgical Services said: “The expansion of the robotic programme helps us improve patient outcomes while developing pioneering and ground-breaking medical techniques in Newcastle. Having access to state-of-the-art robotic equipment will ensure we attract the brightest talents from across the UK and ensure the Trust remains an employer of choice. We are immensely grateful to the Charity, and its donors, for this support.” 

## **Partnership funding** 

## **The festive season proved to be a highlight in terms of fantastic charitable support from companies who helped to fund a series of projections, illuminations and festive decorations that brought some much-needed light and festive cheer into the lives of staff, patients, and visitors at Newcastle Hospitals.** 

Special thanks to: Medical Architecture, CAD 21, Geoffrey Robinson Limited and Robertson CE Limited who all contributed to the outdoor illuminations. Our charity team were also able to lead on a festive carol service and light switch on at the RVI and Freeman Hospital and invited some of the young patients and VIPs to switch the lights on, with mince pies kindly provided by Brewin Dolphin Ltd. 

In addition to this a number of local companies and suppliers signed up to be a ‘Hospital Partner’ throughout the festive season to bring some much-valued additional festive cheer in the form of decorations and seasonal gifts and activities for the staff and patients of the RVI, the Great North Children’s Hospital and the Freeman Hospital. 

## **Legacies** 

**A gift to Newcastle Hospitals Charity in the form of a legacy is the greatest honour we can receive and this year we received almost £3.9 million from 55 legacy donations.** 

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## **Structure and governance** 

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

## **Charitable objects** 

Newcastle Hospitals 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. Newcastle Hospitals Chairty is constituted with a sole Corporate Trustee, which is the Board of Directors of The Newcastle upon Tyne Hospitals NHS Foundation Trust. 

With effect from 1st April 2016, the Corporate Trustee was appointed as Trustee of the 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 Newcastle Hospitals Charity’s financial accounts from 2016/17 onwards. 

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. 

## **Statement of Trustee’s responsibilities** 

The Trustee is responsible for ensuring that the Annual Report and Accounts are prepared in accordance with all applicable laws and regulations and company law requires financial statements are prepared annually. 

Under that law, the Corporate Trustee has 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 Trustee 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 Trustee is required to: 

- select suitable accounting policies and apply them consistently 

- observe the methods and principles in the Charities Statement of Recommended Practice (SORP) 

- make judgments and estimates that are reasonable and prudent 

- state whether FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” has been followed 

- prepare the financial statements on a ‘Going Concern’ basis unless it is inappropriate to presume that the Charity will continue in business. 

The Trustee is responsible for ensuring that adequate accounting records are kept that are sufficient to show and explain Newcastle Hospitals Charity’s transactions. The Trustee is also responsible for disclosing, with reasonable accuracy at any time, the financial position of Newcastle Hospitals Chairty to ensure compliance with the Companies Act 2006. It is also responsible for safeguarding the assets of Newcastle Hospitals Chairty and for taking reasonable steps for the prevention and detection of fraud and other irregularities. Finally, the Trustee is responsible for the maintenance and integrity of Newcastle Hospitals Charity’s website. 

Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. 

## **Corporate Trustee** 

The Newcastle upon Tyne Hospitals NHS Foundation Trust Board of Directors are the sole Corporate Trustee of Newcastle Hospitals Charity. Further information about the Board of Directors can be found on the Newcastle Hospitals website: **https://www.newcastle- hospitals.nhs.uk/about/board-of-directors-2/** 

The Board of Directors has delegated authority on the management of charity funds to the Newcastle Hospitals Charity Committee. 

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

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## **Charity funds** 

## **Charity Committee** 

The Charity Committee is a statutory Committee which has been established by the Board of Directors of The Newcastle upon Tyne Hospitals NHS Foundation Trust. It is responsible for the management of all charitable funds under the control of the Trust, on behalf of the Board of Directors, and considers the requirements of the Department of Health and Social Care and the Charity Commission for England and Wales. 

## **The Committee’s membership comprises:** 

**Gillian Baker, Jackie Bilcliff,** Non-Executive Director and Chief Finance Officer Chair of the Charity Committee **Caroline Docking, Graeme Chapman,** Assistant Chief Executive and Non-Executive Director Director of Communications and Engagement 


**Bill MacLeod, Mr Andy Welch,** Non-Executive Director Medical Director/Deputy Chief Executive. 

All members of the Committee receive training and development support both before joining, and on a continuing basis, to ensure their effectiveness as members. This is supported by the process of annual appraisal for all Non-Executive Directors. 

The Charity Committee has an annually reviewed Terms of Reference and meets a minimum of four times per year and agendas are set for each meeting utilising an agreed Schedule of Business. This provides assurance to the Board of Directors in its capacity as Corporate Trustee 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 required for the transaction of business is three members, which includes at least one Executive and at least one Non-Executive Director. 

## **Newcastle Hospitals Charity Team** 

We have a dedicated team within Newcastle Hospitals who provides administrative, financial, and fundraising support. Newcastle Hospitals Charity does not directly employ staff, team members are employees of The Newcastle upon Tyne Hospitals NHS Foundation Trust and Newcastle Hospitals Charity is recharged for costs incurred in relation to both staffing and nonpay related expenditure incurred directly in relation to charity activities. 

In January 2018, the Charity Commission agreed to a re-classification of Charity funds. As a result, there are over three hundred individual unrestricted funds which make up Newcastle Hospitals Charity. Work continues to rationalise funds where possible to ensure that donor wishes are respected, and funds are available for use both Trust wide and in specialty areas. 

## **Newcastle Hospitals Charity continues to be the home of:** 

**The Great North Children’s Hospital Foundation** which supports children and their families who come to the Great North Children’s Hospital (based at the RVI) for treatment and care, including funding life-changing research, projects to make the hospital more welcoming for children and support services for children and their families, such as a financial hardship fund. 


**The Sir Bobby Robson Foundation** which works to help find more effective ways to detect and treat cancer for patients across the North East, Cumbria and beyond. The Foundation funds clinical trials and cancer research, pioneering cancer treatment and innovative cancer support services, such as acupuncture, complementary therapies, and counselling. 



**Charlie Bear for Cancer Care** which supports patients who are living with cancer, their families and carers, and staff at the NCCC at the Freeman Hospital, as well as at Cumberland Infirmary. Charlie Bear for Cancer Care works to keep pace with fast- moving developments in cancer care and treatment, funds local research projects to develop new treatments and initiatives to help patients feel more comfortable during their treatments. 


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## **Code of Fundraising Practice** 

## **Newcastle Hospitals Charity fully adheres to the Code of Fundraising Practice, which sets the standards that apply to fundraising carried out by all charitable institutions and thirdparty fundraisers in the UK.** 

## **Donor promise** 

Without the generosity of supporters, we would not be able to continue our work to enhance and improve the experience of patients and their families, as well as the amazing staff across all sites. 

Our ambition is to make the biggest difference, so we promise to make sure we look after supporters in the best way possible. 

## **We are respectful** 

## **We are honest and open** 

- We value donor generosity and will inform donors of where their fundraising will make the biggest difference. 

   - We promise to communicate in a way that suits our donors/fundraisers and will be respectful of any changes they wish to make to this decision. 

- We will be clear about what we are fundraising for. 

   - We will treat every donation respectfully, and if a donor does not wish to continue their relationship with us, that will be respected. 

- We will be clear about how much of a certain donation goes straight to frontline services and how much is spent on the administration of the Charity. 

   - We are a member of the Fundraising Regulator and are proud to have committed to their Fundraising Promise, which delivers the highest standards possible across the Charity. We promise that our fundraising is always legal, open, honest and respectful. 

- We will respect donor privacy and will never sell personal details to a third party. 

## **We are committed to high standards** 

- We will do all we can to ensure that fundraisers and volunteers abide by the Fundraising Regulator’s Fundraising Promise. 

## **Donor care** 

We will always aim to: 

- We will comply with the law, the Charity Commission and the Fundraising Regulator, including guidance around data protection and health and safety. 

   - respond to all enquiries within two working days 

   - thank each donation within one working week of receipt 

- Donor and fundraiser opinions matter to us. We are keen to help if they are unhappy with anything we have done. Complaints can be made via the contact details on the Charity website: https://charity.newcastlehospitals.nhs.uk/contact-us/ 

- ensure all supporters’ details are recorded accurately and efficiently on the database 

- make sure we record supporters’ contact preferences. 

## **Policy** 

All 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 that Newcastle Hospitals Charity has the necessary practices currently in place to assess all associated risks. A detailed Risk Register is continually maintained and monitored which identifies risk areas, the potential impact of those risks, and the steps taken to mitigate them. Further information on Newcastle Hospitals Charity risk management processes can be found in section 5 of this report: Risk Management and Internal Control. 

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

Newcastle Hospitals Charity follows The 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. 

## **Reserves** 

The approach in 2022/23 has been to hold the investment reserves of Newcastle Hospitals Charity while the Charity Committee review the Charity’s Investment Policy and Reserves Policy and agree a spending plan for the distribution of the reserves in 2024/25. 

Newcastle Hospitals Charity works with two Investment Management companies and reviews the performance of the Charity’s investment portfolio each quarter. 

The total reserves at 31 March 2023 is £35,172m of which £14,031m are restricted and £21,141m are unrestricted. 

## **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 we collect and use personal information and why it is important in enabling us to fulfil our charitable objectives. The statement is available in full on our website: **https://charity.newcastle- hospitals.nhs.uk/privacy/** 

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## **Risk management and internal control** 

## **Principal risks** 

Newcastle Hospitals Charity has adopted The Newcastle upon Tyne Hospitals 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:** 

- a clear framework for the accountability and delegated responsibility for the management of risk 

   - risk management processes that are integrated and embedded into the day-today activities of the Charity 

- an integrated document that sets out the overall purpose and processes, as well as an associated annual plan 

   - a tailored training programme to address key risk areas, and 

   - comprehensive communication processes for risk management policies and procedures, and the dissemination of learning from lessons learned. 

- a clearly defined Committee structure that supports robust and timely decision making around key charity risks 

- robust systems for the identification, analysis, prioritisation and actions in relation to risks affecting all areas of activity 

A charity risk register has been maintained throughout 2022/2023, which records when a risk has been identified, who owns it, likelihood of occurrence, potential impact, and mitigating action. 

Newcastle Hospitals 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. 



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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.** 

- Charity strategy. 

- Strategic priorities. 

- Priority actions. 

- Enhanced focus on grant making. 

- Proactive approach to use of funds to support and help our hospitals to go further. 

- Defined reserves. 

- Process undertaken and a recommendation will be made to Trust Board. 


## **If the pandemic continues there could be challenges in fundraising following the change in the charity model from reactive to proactive which could then impact on future income.** 

- Active monitoring and management of charity accounts. 

- Actively seek COVID-19 safe alternative fundraising activities and campaigns. 

- Actively seek and strengthen corporate partnerships. 

- Actively fundraising from Trusts and Foundations. 

- Alternate forms of fundraising taken place i.e. virtual events. 

- The fundraising team is actively developing and strengthening a programme of corporate partnerships. 

- The launch of Pennies from Heaven (staff giving campaign) commenced in February and has been successful to date. 

## **Principal risks** 

## **Key controls** 

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

- Independent review of charity governance. 

- Review of current governance model. 

- Charity governance working group. 

- Recruitment of key personnel to fulfil charity responsibilities. 

- Development of charity policies/procedures. 

- Development and implementation of the Charity strategy. 

- Further recruitment of the charity team both completed and ongoing. 

- Governance work undertaken with fund advisory sub-committees and revisions to their terms of reference. 

- Charity Committee. 


**If we are unable to achieve aim five of the charity strategy ‘efficient and effective charity governance and operations’ there is significant risk that we will be unable to scale up our fundraising and grant making and therefore will not achieve the charity strategy in its entirety.** 

   - Legal advice obtained regarding governance. 

   - Process mapping session undertaken to demonstrate the current process and highlight the changes needed. 

   - Charity Governance Working Group. 

   - Monitoring and setting KPI meetings. 

   - Annual competition of Charity Commission Connected Charities Guide. 

   - Options appraisal regarding charity financial management in progress. 

   - Risk added to the Board Assurance Framework. 

- Actively attending engagement events. 

- Hosting a weekly ‘Meet the Charity Team’ to promote events and campaigns. 

**Following the annual external Audit, a risk has been identified in regard to Beacon CRM system, the current charity CRM system and its ability to comply with the statutory and regulatory Charity Commission and HMRC guidance. This could impact on our reputation and cause potential regulatory penalties.** 

- External review of the current charity CRM system. 

- Final auditors report received. 

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## **A look forward** 

Newcastle Hospitals Charity has adopted a risk appetite statement which shows the amount of risk we are willing to accept in seeking to achieve our strategic objectives. 

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

Newcastle Hospitals Charity has an ambitious strategy to 2026 which puts people at the heart of all our activities and is united with the aim of Newcastle Hospitals to make a real difference to the health and care of the people across the Trust and beyond. Our ambition is to strengthen our role as a key partner for the Trust and to increase the impact that we can make on improving the health of our region and beyond. 

Working in close partnership with the Trust, our goals are to: 

- improve the patient and visitor experience, enhancing patient centred care 

- improve staff health, wellbeing and development 

- tackle health inequalities and key health issues for our region and nationally. 

|**Key risk**<br>**category**|**Risk**<br>**appetite**<br>**level**|**Risk**<br>**tolerance**<br>**score**|**Risk**<br>**appetite**<br>**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.<br>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 Newcastle Hospitals Charity this|
||||equates to approximately £6m for the year|
||||2022/2023.|



## **Strategic priorities** 

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

- **1)  To enhance the patient experience and 4)  To develop place-based partnerships to environment: tackle health inequalities and to create healthier communities:** 

- a.  Delivering an effective, accessible grants programme to support Trust improvements a.  Build and strengthen partnerships with key to services and the patient environment. health and VCSE organisations to deliver 

   - a.  Build and strengthen partnerships with key health and VCSE organisations to deliver greater impact. 

- b.  Establish a grant programme dedicated to supporting patients and families experiencing severe financial difficulty during their treatment. 

- c.  Establish an arts engagement programme for staff and the local community. 

   - b.  Establish Newcastle Hospitals Charity as a regional partner for Collaborative Newcastle prevention initiatives. 

- c.  Establish an arts engagement programme c.  Support micro-communities through for staff and the local community. Collaborative Newcastle to improve health and wellbeing and reduce inequalities. 

- **2)  To support the health, wellbeing and** d.  Work with the NHS Charities Together 

- **professional development of the staff at** network to influence national NHS charity 

- **Newcastle Hospitals:** funding priorities. 

- a.  Generate financial support for the Trust’s flagship wellbeing and recognition **5)  To be a trusted charity partner with** programmes. **connected and engaged supporters and** 

- b.  Generate financial support for staff initiatives **volunteers:** within ‘Sustainable Healthcare in Newcastle’ a.  Ensure excellent governance and ethical (SHINE). standards of charity practice. 

- c.  Fund research fellowship programme for b.  Develop and resource professional, ethical staff, supporting career progression while fundraising programmes to deliver our supporting the Trust to be at forefront of ambition. 

- c.  Fund research fellowship programme for staff, supporting career progression while supporting the Trust to be at forefront of health innovation and research. 

   - c.  Develop brand to ensure that our ability to deliver impact is understood. 

- **3)  To fund major developments and health related clinical research and innovation:** 

d.Focus fundraising on initial key themes: 

- a.  Fund, and fundraise for, major projects within the Trust, and where the Trust is a key partner. 

   - Green and Healthy Hospitals 

- Research and Innovation 

- b.  Provide financial support for cutting edge **•** Child Health 

- clinical research and innovation, particularly when there is no other source widely available. **•** Cancer 

**20** 

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## **Income and expenditure** 

## **Expenditure from all sources was £8.6 million summarised as follows –** 

## **Financial review of the year** 

## **This section provides a financial summary of Newcastle Hospitals Charity for 2022-2023. A full copy of the audited accounts is included in this report.** 

There was an overall increase in income from £5.2m (2021-22) to £8.4m (2022-23) in the year with expenditure closely matching income for the year at £8.6m (2022-23). Income for the year is in line with the Charity’s plan to increase income and invest in fundraising. 

As at 31 March 2023 the net movement on investments (realised and unrealised) stood at £1.4m loss, against a gain of £3.7m in 2021-22. The net movement in funds for the year was a £1.5m deficit, against a £2.7m deficit in 2021-22. 

This continues to be an exceptional outcome and although it reflects a reducing unrealised gain on previous years, the stock exchange and economy continues to struggle with economic recovery following 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 turbulent socio- political times. 

||**£’000**|
|---|---|
|Patient Education and Welfare|2,664|
|Purchase of new Equipment|2,973|
|Staff Education and Welfare|1,878|
|Medical Research|378|
|**Total income**|**8,554**|
|||



Total expenditure of £8.6m in 2022-23 was lower than that of £11.5m in 2021-22 which is largely attributed to an exceptional award of £3.2m made in 2021-22 to establish a Nursing, Midwifery and Allied Health Practitioner Research programme. 

## **Income and expenditure** 

## **Income from all sources was £8.4 million summarised as follows –** 

||**£’000**|
|---|---|
|Donations & Legacies|6,353|
|Grants received|583|
|Other Trading Activities|371|
|Investments|1,125|
|**Total income**|**8,431**|



Income in 2022-2023 (£8.4 million) was higher than in 2021/22 (£5.2 million), as there has been an increase in donations and Legacies, other trading activities, and investments, together with a decrease in grants received. The income in 2022/23 includes income of £583k from NHS Charities Together. 

Legacy income of £3.9m was received (68 bequests) and continues to reflect the esteem and high regard for the levels of care and services provided by Newcastle Hospitals. 

**22** 

**23** 



## **Fund organisation** 

Newcastle Hospitals Charity comprises 374 individual funds, 3 of which are restricted in purpose and 1 of which is designated for general purposes. The remaining 370 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. 

## **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’. 


## **Investment policy** 

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** 

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: 


**Charlie Bear for Cancer Care** which is held for the ‘investigation, prevention, treatment, cure and defeat of cancer in all its forms and the advancement of scientific and medical education and research in topics related to cancer, provided that the useful result of such research is published’. 

**The Fleming and Watson Children’s Fund** which is held for the ‘care, treatment and relief by way of research or otherwise of sick children attending any of the hospitals or other facilities managed by or otherwise in any way connected with the Newcastle upon Tyne Hospitals NHS Foundation Trust, or any successor to that body’. 

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 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. 

- Engagement on issues of corporate social responsibility with a view to optimising long- term economic returns. 

- Engagement on corporate governance including proxy voting on issues to protect and enhance shareholder value. 

- Setting appropriate constraints on investment and exposure to activities considered unacceptable by an independent Board. 

## **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. 

Newcastle Hospitals 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 2022/23, Newcastle Hospitals Charity received £1,125k 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. 

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. Newcastle Hospitals Charity can apply to the Charity Commission to re-organise funds that are no longer relevant or cannot be usefully used. 

During 2022/23 418 applications for funding from staff and external partners were considered. That includes a very wide range of proposals some of which will span several years, and funding has been reserved. 

**24** 

**25** 



## **Charitable fund management costs** 

During 2022/23 the Trust employed 18.4 whole time equivalent staff whose sole purpose was to generate and manage the strategy, operations, and finances of the Charity. The cost of those staff (and associated office costs) was £881k or 2.4% 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** 

Robson / Laider Accountants Fernwood House, Fernwood Road, Jesmond, Newcastle upon Tyne NE2 ITJ 

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: 0191 2137235 Website: https://charity.newcastle-hospitals.nhs.uk/ 


**Jill Baker (Non-Executive Director) Date: 16 November 2023** 

**26** 

**27** 



## **NEWCASTLE UPON TYNE HOSPITALS NHS CHARITY (Reg. 1057213)** 

## **STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2023** 


**----- Start of picture text -----**<br>
|||||||
|---|---|---|---|---|---|
|NOTE|2023|2023|2023|2022|
|Unrestricted|restricted|Total|Total|
|£000|£000|£000|£000|
|INCOME from:|
|Donations & Legacies|4-5|3,975|2,378|6,353|3,039|
|Grants Received|6|30|553|583|1,015|
|Other Trading Activities|319|52|371|90|
|Investments|14 (d)|691|434|1,125|1,056|
|Total Income|5,015|3,416|8,431|5,200|
|EXPENDITURE on:|
|Generating Income|9|553|110|662|431|
|Charitable Activities:|10|
|Patient Education and Welfare|1,968|696|2,664|4,932|
|Purchase of new Equipment|2,950|22|2,973|1,001|
|Staff Education and Welfare|1,309|569|1,878|4,830|
|Medical Research|176|201|378|350|
|Total Expenditure|6,956|1,598|8,554|11,545|
|Net Income/(Expenditure)|(1,940)|1,818|(123)|(6,345)|
|Net Gain on Revaluation of Property|13|0|0|0|0|
|Net Gains/(Losses) on Investments|14 (a)|(858)|(538)|(1,396)|3,685|
|Net Movement in Funds|(2,798)|1,280|(1,518)|(2,660)|
|Reconciliation of Funds|
|Total Funds brought forward|3(a)&3(c)|23,940|12,751|36,691|39,351|
|Total Funds carried forward|3(a)&3(c)|21,141|14,031|35,172|36,691|

**----- End of picture text -----**<br>


## **NEWCASTLE UPON TYNE HOSPITALS NHS CHARITY (Reg. 1057213)** 

## **BALANCE SHEET AS AT 31 MARCH 2023** 


**----- Start of picture text -----**<br>
|||||||
|---|---|---|---|---|---|
|NOTE|2023|2023|2023|2022|
|Unrestricted|restricted|Total|Total|
|£000|£000|£000|£000|
|Fixed Assets|
|Property|13|0|0|0|0|
|Investments|14|27,767|12,905|40,672|42,067|
|Total Fixed Assets|27,767|12,905|40,672|42,067|
|Current Assets|
|Stocks and work in progress|51|8|59|43|
|Debtors|15|183|99|282|299|
|Cash and Cash Equivalents|16|5,494|4,416|9,910|10,070|
|Total Current Assets|5,728|4,523|10,251|10,413|
|Creditors: Amounts falling due|17|(9,137)|(2,159)|(11,296)|(10,272)|
|within one year|
|Net Current Assets/(Liabilities)|(3,409)|2,364|(1,045)|141|
|Total assets less current liabilities|24,358|15,269|39,627|42,208|
|Creditors: Amounts falling due|17|(3,217)|(1,238)|(4,455)|(5,517)|
|after more than one year|
|Net Assets|21,141|14,031|35,172|36,691|
|Total Charity Funds|3(b) & 3(d)|21,141|14,031|35,172|36,691|

**----- End of picture text -----**<br>


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. 

**28** 

**29** 



**NEWCASTLE UPON TYNE HOSPITALS NHS CHARITY (Reg. 1057213) STATEMENT OF CASH FLOW FOR YEAR ENDED 31 MARCH 2023** 

## **NEWCASTLE UPON TYNE HOSPITALS NHS CHARITY (Reg. 1057213)** 


**----- Start of picture text -----**<br>
||||||
|---|---|---|---|---|
|2023|2023|2023|2022|
|Unrestricted|restricted|Total|Total|
|£000|£000|£000|£000|
|Net operating income / (expenditure)|(2,798))|1,280|(1,518)|(2,660)|
|Adjustment for non-cash transactions|0|0|
|- depreciation, amortisation and net|
|impairments|
|(Increase)/decrease in debtors|30|(12)|18|(1)|
|Increase/(decrease) in creditors|404|(443)|(39)|6,825|
|Dividends, interest and rents from|(691)|(434)|(1,125)|(1,056)|
|investments|
|(Gains)/losses on investments|858|538|1,396|(3,685)|
|Other operating cash flows|1,306|(1,322)|(16)|(8)|
|Net cash generating from / (used|(891)|(393)|(1,284)|(585)|
|in) operations|
|Cash flows from investing|
|activities:|
|Dividends, interest and rents from|691|434|1,125|1,056|
|investments|
|Net cash generating from / (used|691|434|1,125|1,056|
|in) investing activities|
|Net cash generating from / (used|0|0|0|0|
|in) financing activities|
|Change in cash and cash|(200)|41|(160)|471|
|equivalents in the reporting period|
|Cash and cash equivalents at the|5,695|4,375|10,070|9,599|
|beginning of the reporting period|
|Cash and cash equivalents at the|5,494|4,416|9,910|10,070|

**----- End of picture text -----**<br>


**Cash and cash equivalents at the end of the reporting period** 

The notes on Pages 31 to 33 are an integral part of these financial statements. 

The financial statements on pages 28 to 41 were approved by the Trustees on 16 November 2023 and signed on its behalf by 


**Jill Baker (Non-Executive Director) Date: 16 November 2023** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023** 

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

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** 

## **(a) Basis of preparation** 

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 75% of income in 2022/23 (36% in 2021/22). 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 £40,672k at 31 March 2023, which represented a decrease in value of £1,396k from £42,067k at 31 March 2022. Income from investments in 2022/23 was £1,125k and is an increase of £68k compared to £1,056k in 2021/22. 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. 

## **(b) 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. 

## **(c) Income** 

All income is included in full in the Statement of Financial Activities as soon as the following three factors can be met: 

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. 

## **(d) Income-legacies** 

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. 

## **(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 

**30** 

**31** 



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 prorata 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 generating income and support costs. There is no effect on the total expenditure for 2022/23 or 2021/22. (See Note 9) 

## **2  Related Party Transactions Continued…** 

During the financial year payments of £7,553k (2021/22 : £4,401k) 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 £964k was due for payment at 31st March 2023 (This was £1,100k in 2021/22). 

These charges made by Newcastle upon Tyne Hospitals NHS Foundation Trust (£712k) for administrative support and overheads (excluding bank charges), 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. This was (£449k 2020/21). 

The Newcastle upon Tyne Hospitals NHS Foundation Trust delegates authority for oversight of Newcastle Hospitals Charity to the Charity committee which comprises Non-Executive Directors and Executive Directors of the Trust. 

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

There were no expenses or remuneration paid to the Trustees during the year (2021-22 Nil). 

There were no transactions with Trustees or connected persons for the year to 31st March 2023 (2021-22 Nil). 

No indemnity insurance was provided to the Trustees in the year to 31st March 2023 (2021-22 Nil). 

There were no loans or guarantees secured against assets of the Charity in the year to 31st March 2023 (2021-22 Nil). 

## **(i) Fixed Asset Property** 

The charity does not own any fixed assets. 

## **(j) Fixed Asset Investment** 

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. 

## **(k) Realised gains and losses** 

All gains and losses are taken to the Statement of Financial Activities as they arise. Realised gains and losses on investments are calculated as the difference between 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. 

## **(l) Pooling Scheme** 

There is no official pooling scheme operated for investments. 

## **(m) Stocks** 

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. 



## **(p)Creditors** 

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

## **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. 

**32** 

**33** 



**NEWCASTLE UPON TYNE HOSPITALS NHS CHARITY (Reg. 1057213) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st MARCH 2023** 


**----- Start of picture text -----**<br>
||||
|---|---|---|
|3(a) UNRESTRICTED FUNDS-Statement of Financial Activity|2023|2022|
|for the Year ended 31st March 2023|£000|£000|
|INCOME|
|Donations & Legacies|2,975|1,764|
|Grants Received|30|0|
|Other Trading Activities|319|43|
|Investments|691|708|
|Total Income|4,015|2,515|
|EXPENDITURE|
|Generating Income|553|322|
|Charitable Activities:|
|Patient Education and Welfare|1,968|4,596|
|Purchase of new Equipment|1,950|998|
|Staff Education and Welfare|1,309|3,788|
|Medical Research|176|331|
|Total Expenditure|5,956|10,035|
|Net (Expenditure)/Income|(1,940)|(7,520)|
|Net Gain on Revaluation of Property|0|0|
|Net Gains (Losses) on Investments|(858)|2,469|
|Net Movement in Funds|(2,798)|(5,051)|
|Fund Balances Brought Forward|23,939|28,991|
|Total Funds Carried Forward|21,141|23,940|
|2023|2022|
|3(b) UNRESTRICTED FUNDS-Balance Sheet as at 31st March 2023|
|£000|£000|
|Fixed Assets|
|Tangible Assets|0|0|
|Investments|27,767|29,943|
|Total Fixed Assets|27,767|29,943|
|Current Assets|
|Stocks and work in progress|51|38|
|Debtors|183|213|
|Cash and Cash Equivalents|5,494|5,695|
|Total Current Assets|5,728|5,945|
|Creditors: Amounts falling due within one year|(9,137)|(7,345)|
|Net Current Assets/(Liabilities)|(3,409)|(1,400)|
|Total assets less current liabilities|24,358|28,543|
|Creditors: Amounts falling due after more than one year|(3,217)|(4,604)|
|Net Assets|21,141|23,940|
|Total Charity Funds|21,141|23,940|

**----- End of picture text -----**<br>



**----- Start of picture text -----**<br>
||||
|---|---|---|
|3(c) RESTRICTED FUNDS-Statement of Financial Activity for the Year|2023|2022|
|ended 31st March 2023|£000|£000|
|INCOME|
|Donations & Legacies|3,378|1,274|
|Grants Received|553|1,015|
|Other Trading Activities|52|47|
|Investments|434|349|
|Total Income|4,416|2,686|
|EXPENDITURE|
|Generating Income|110|109|
|Charitable Activities:|
|Patient Education and Welfare|696|336|
|Purchase of new Equipment|1,022|3|
|Staff Education and Welfare|569|1,042|
|Medical Research|201|20|
|Total Expenditure|2,598|1,511|
|Net Income (Expenditure)|1,818|1,175|
|Net Gains (Losses) on Investments|(538)|1,216|
|Net Movement in Funds|1,280|2,391|
|Fund Balances Brought Forward|12,751|10,360|
|Total Funds Carried Forward|14,031|12,751|
|2023|2022|
|3(d) RESTRICTED FUNDS-Balance Sheet as at 31st March 2023|
|£000|£000|
|Fixed Assets|
|Investments|12,905|12,124|
|Total Fixed Assets|12,905|12,124|
|Current Assets|
|Stocks and work in progress|8|5|
|Debtors|99|87|
|Cash and Cash Equivalents|4,416|4,375|
|Short term Investments and Deposits|
|Total Current Assets|4,523|4,467|
|Creditors: Amounts falling due within one year|(2,159)|(2,927)|
|Net Current Assets/(Liabilities)|2,364|1,540|
|Total assets less current liabilities|15,269|13,664|
|Creditors: Amounts falling due after more than one year|(1,238)|(913)|
|Net Assets|14,031|12,751|
|Total Charity Funds|14,031|12,751|

**----- End of picture text -----**<br>


**34** 

**35** 




**----- Start of picture text -----**<br>
4 Donations 2023  2022<br>£000 £000<br>General Purposes 1,907 810<br>Charlie Bear 10 33<br>Sir Bobby Robson Foundation 556 375<br>Total 2,473 1,218<br>**----- End of picture text -----**<br>


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


**----- Start of picture text -----**<br>
5 Legacies 2023  2022<br>£000 £000<br>General Purposes 2,068 954<br>Charlie Bear 9 14<br>Sir Bobby Robson Foundation 1,803 853<br>Total 3,880 1,821<br>**----- End of picture text -----**<br>


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 £583k was received. The Charity received £583k from NHS Charities Together to help with COVID 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 Charity Retail Manager and the Charlie Bear Retail Manager at 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, Cyclone Festival of Cycling, 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. 


**----- Start of picture text -----**<br>
||||||
|---|---|---|---|---|
|2023|2023|2023|2022|
|8 Movements in funding commitments|Current|Non- Current|Total|Total|
|Liabilities|Liabilities|
|£000|£000|£000|£000|
|Opening balance at 1st April|11,950|3,840|15,790|8,965|
|Additional commitments made during the year|4,374|2,628|7,002|9,685|
|Amounts paid during the year|(3,970)|(3,071)|(7,041)|(2,861)|
|Closing balance at 31st March|12,354|3,397|15,751|15,789|

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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 2022-23 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 (2021-22 : £12k) related solely to the year-end audit with no additional work being undertaken. There were no governance costs. 

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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||||||
|---|---|---|---|---|
|2023|2023|2023|2022|
|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|109|62|171|102|
|Bought-in services from NHS-Salaries|247|580|827|619|
|Bought-in services from NHS-Accommodation/|0|54|54|54|
|Office/IT|
|Goods for Resale|214|0|214|32|
|Promotion/Publicity/Events|89|3|92|56|
|Bank Charges|16|6|22|4|
|Miscellaneous|(13)|0|(13)|5|
|Total|662|718|1,380|884|

**----- End of picture text -----**<br>


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||||||
|---|---|---|---|---|
|10 Charitable Activities|2023|2023|2023|2022|
|Grant|Support|Total|Total|
|Funded|Costs|
|Activities|
|£000|£000|£000|£000|
|Patient Education and Welfare|2,421|243|2,664|4,932|
|Purchase of new Equipment|2,704|269|2,973|1,001|
|Staff Education and Welfare|1,707|171|1,878|4,830|
|Medical Research|342|35|377|350|
|Total Grants Payable|7,174|718|7,892|11,113|

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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 fourteen awards to: 

- (i) **£188k - Citizens Advice Gateshead, for Social Welfare Advice for families at The Great North Children’s Hospital.** 

- (ii) **£129k - Newcastle University, for Socioeconomic inequalities in lung cancer treatment in the North East of England.** 

- (iii) **£88k - Blue Sky Trust, for Living Well With HIV’ project.** 

- (iv) **£60k - Citizens Advice Gateshead, for A Helping Hand: Social Welfare Advice for Trust Staff.** 

- (v) **£38k - Childrens Heart Unit Fund, for Imaging software and associated costs.** 


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14 Fixed Asset Investments 2023  2022<br>£000 £000<br>a) Movement in Fixed Asset Investments<br>Market Value at 1 April 2021 42,067 38,383<br>Add Acquisitions at Cost 0<br>Net gain/(loss) on Revaluation (1,396) 3,684<br>Market Value at 31 March 2023 40,672 42,067<br>Historic Cost at 31 March 2023 25,831 25,831<br>2023  2023  2023  2022<br>b) Fixed Asset Investments Held in UK Held Outside  Total Total<br>UK<br>£000 £000 £000 £000<br>Investments in a Common<br>Investment Fund (CCLA) 19,555 0 19,555 20,550<br>Investments Listed on Stock  21,116 0 21,116 21,517<br>Exchange (Newton)<br>Total 42,067 0 40,672 42,067<br>**----- End of picture text -----**<br>


- (vi) **£30k - Northumbria Blood Bikes, for Volunteer training and development programme.** 

- (vii) **£25k - The Children’s Foundation, for The Baby Box - supporting first time mothers.** 

- (viii) **£22k - Healthworks, for Change4 Life Mini Champions – Outer West.** 

- (ix) **£20k - Deaflink, for British Sign Language Health Navigator Service.** 

- (x) **£6k - Northumbria Healthcare NHS Foundation Trust, for International Burns Project (Tanzania).** 

## **c) Cash and Cash equivalents** 

A sum of £9,910k (2020/21 : £10,070k) is held between a HSBC Moneymaster Deposit Account, Virgin Money Bank Deposit Account, Barclays Current Account and a Barclays Business Savings Account. 

- (xi) **£5k - InterAct Stroke Support, for InterAct Charity working with stroke rehabilitation patients.** 

- (xii) **£5k - Give A Duck, for Chemo Duck and Huggable Hope to patients at The Great North Children’s Hospital.** 

- (xiii) **£4k - Radio Tyneside, for Radio Tyneside Core Costs.** 

- (xiv) **£1k - Transplant Sport UK, for Enabling the Transplant Team to compete at the British Transplant Games.** 

## **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 including on costs). 


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||||||
|---|---|---|---|---|
|d)  Analysis of Gross Income|2023|2023|2023|2022|
|from Investments|Held in UK|Held Outside|Total|Total|
|UK|
|£000|£000|£000|£000|
|Investments in a Common Investment Fund (CCLA)|592|0|592|586|
|Other Investments (HSBC & Virgin Money Bank Interest))|46|0|46|4|
|Investments Listed on Stock Exchange (Newton)|486|0|486|467|
|Interest from Treasury Deposit /Business|0|0|0|0|
|Premium Account|
|Total Income from Investments|1,125|0|1,125|1,056|

**----- End of picture text -----**<br>


## **13 Fixed Asset Property** 

The Charity does not hold any Freehold Land & Buildings. 

Dividend income totalled £1,079k in 2022/23, (2021/22 : £1,053k) 

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|||
|---|---|
|2023|2022|
|£000|£000|
|282|300|
|282|300|

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## **15 Debtors** 

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


**----- Start of picture text -----**<br>
|||
|---|---|
|2023|2022|
|£000|£000|
|633|1,012|
|9,278|9,058|
|9,910|10,070|

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**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, Virgin Money (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|2023|2022|
|£000|£000|
|Amounts falling due within one year :|
|Trade Creditors *|964|1,100|
|Accruals and deferred income #|10,333|9,172|
|Total|11,297|10,272|

**----- End of picture text -----**<br>



**----- Start of picture text -----**<br>
2023  2022<br>£000 £000<br>Amounts falling due within one year:<br>Accruals and deferred income # 4,454 5,517<br>Total 4,454 5,517<br>**----- End of picture text -----**<br>



**----- Start of picture text -----**<br>
18   Balance   Income Expenditure Transfers Gains and  Balance 31st<br>1st April 2022 Losses March 2023<br>Analysis of<br>Charitable Funds  £000 £000 £000 £000 £000 £000<br>**----- End of picture text -----**<br>



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||||||||
|---|---|---|---|---|---|---|
|RESTRICTED FUNDS|
|Sir Bobby Robson|11,076|2,749|(836)|0|(482)|12,507|
|Foundation|
|Charlie Bear|782|107|(199)|0|(48)|642|
|Children’s Services|912|7|7|0|(8)|918|
|(Fleming/Watson Fund)|
|NHS Charities Together|(19)|552|(570)|0|0|(37)|
|Total|12,751|3,416|(1,598)|0|(538)|14,031|

**----- End of picture text -----**<br>


Balance Income Expenditure Transfers Gains and Balance 31st 1st April 2022 Losses March 2023 £000 £000 £000 £000 £000 £000 **UNRESTRICTED FUNDS** General Purposes 23,940 5,015 (6,956) 0 (858) 21,141 **Total 23,940 5,015 (6,956) 0 (858)** 21,141 


**----- Start of picture text -----**<br>
Balance   Income Expenditure Transfers Gains and  Balance 31st<br>1st April 2022 Losses March 2023<br>£000 £000 £000 £000 £000 £000<br>36,691 8,431 (8,554) 0 (1,396) 35,171<br>**----- End of picture text -----**<br>


## **TOTAL FUNDS** 

Notes: 

- **A -** No endowment funds are held. 

* Trade Creditors represents the amount owed to a related party - The Newcastle upon Tyne Hospitals NHS Foundation Trust, for costs incurred on behalf of the charity in the furtherance of the Charity’s objects. 

# Accruals of £14,787k (2021/22 : £14,689k) have been included in the above figures which the Trustees considers to be a legal or constructive obligation because of ongoing or future schemes agreed with the Trust (see Annual Report for details). 

- **B -** Funds are shown at Market Value as at 31st March 2023. 

- **C -** The purpose of the restricted funds is explained on page 31 of the annual report. 

## **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 2023 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: 

## **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. 

- give a true and fair view of the state of the charity’s affairs as at 31 March 2023 and of its income and expenditure for the year then ended; 

- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and 

## **Matters on which we are required to report by exception** 

- have been prepared in accordance with the requirements of the Charities Act 2011. 

## **Basis for opinion** 

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. 

## **Conclusions relating to going concern** 

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. 

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report. 

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: 

- the information given in the financial statements is inconsistent in any material respect with the Charity Annual Report; or 

- sufficient accounting records have not been kept; or 

- the financial statements are not in agreement with the accounting records; or 

- we have not received all the information and explanations we require for our audit. 

## **Responsibilities of Trustees** 

As explained more fully in the statement of trustee’s responsibilities set out on page 11, 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: 

- Inquiring of management and, where appropriate, those charged with governance, as to whether the charity is in compliance with laws and regulations, and discussing their policies and procedures regarding compliance with laws and regulations; 

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

- Making enquiries of the trustees and management on whether they had knowledge of any actual, suspected or alleged fraud; 

- Gaining an understanding of the internal controls established to mitigate risks related to fraud; 

- Discussing amongst the engagement team the risks of fraud; and 

- Addressing the risks of fraud through management override of controls by performing journal 

- entry testing. 

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. 

- Inspecting correspondence, if any, with relevant licensing or regulatory authorities; 

- Communicating identified laws and regulations to the engagement team and remaining alert to any indications of non-compliance throughout our audit; and 

- Considering the risk of acts by the charity which were contrary to applicable laws and regulations, including fraud. 

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. 

## **Signed:** 

Michael Moran (Senior Statutory Auditor) 

For and on behalf of Robson Laidler Accountants Limited Statutory Auditor Fernwood House, Fernwood Road, Jesmond, Newcastle upon Tyne NE2 1TJ 

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. 

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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 Reg. 1057213 

**charity.newcastle-hospitals.nhs.uk/** 

**instagram.com/newcastle_nhs/ facebook.com/NewcastleHospitalsCharity** 

**twitter.com/Newcastle_NHS** 

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