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2022-03-31-accounts

United Lincolnshire Hospitals Charity 2021/22 ANNUAL REPORT & ACCOUNTS

Registered Charity 1058065

Page 1 of 34

Foreword from Chair

Welcome to the United Lincolnshire Hospitals Charity Annual Report for the 2021/22 financial year.

2021 was an explorative year, where everyone was finding their feet again after the effects of the COVID-19 pandemic. Within the United Lincolnshire Hospitals NHS Trust we had agreed to put investment into our United Lincolnshire Hospitals Charity.

As part of this investment we recruited a Charity Manager, Charity Fundraiser and Charity Grants Officer to manage the funds and the day to day running of the charity. The Charity Team were able to bring to life the ambitions that our Charitable Funds Committee had set out.

Within this year we had seen our focus to support staff wellbeing come to life with the start of our Gorgeous Gardens work, making 34 of our outside spaces more welcoming and restorative places for our staff to enjoy. This work had been supported by a grant from NHS Charities Together.

We received astounding demonstrations of generosity throughout the pandemic and by having the Charity Team in place we are ensuring this generosity is properly acknowledged.

I hope that this report along with our inaugural Impact Report for the Charity will highlight some of our key achievements throughout the year and see the shift that the United Lincolnshire Hospitals Charity is starting to take.

Within the Impact Report you will read about the first Upon a Star campaign which raised £10,000 and adorned our Hospitals with Christmas Stars, the Thank You initiative where we supported items specifically for staff wellbeing and the Neonatal Teddy Bears that mean so much to the families that receive them when on the Neonatal Unit.

We have worked closer with NHS Charities Together submitting a grant to support Staff Wellbeing directly and by getting involved in their East Midlands Forums for other NHS Charities to discuss their work together.

On behalf of the board of Trustees I am pleased to present you with our annual report and financial statements for the year ending 31 March 2022. The financial statements comply with the Charities Act 2011, the Charities (accounts and Reports) Regulations 1995 (as modified by section 5 and the schedule to the Order) and the Charities Statement of Recommended Practices (FRS 102).

This report has been prepared with the intention of providing information to the reader about the Charity, its aspirations, achievements and its financial activity.

None of the achievements of the Charity which are highlighted in this report or the Impact Report would have been attainable without the support and dedication of our supporters, our fundraisers and the businesses that have supported the Charity. We thank all of those who have worked with the United Lincolnshire Hospitals Charity this year.

Elaine Baylis – Chair, United Lincolnshire Hospitals NHS Trust March 2022

United Lincolnshire Hospitals Charity

Page 2 of 34

The Role of the Charity, our vision and mission

Outstanding Care, Personally Delivered drives everything we do and underpins and informs all of the choices we make as a Charity.

Our Vision:

We strive to make a real difference by providing additional equipment, services and amenities for our patients, our visitors and our staff, which goes beyond the NHS budget, and supporting and investing in pioneering research that will improve the care received and health outcomes across the County.

We work hard with the United Lincolnshire Hospitals NHS Trust to ensure that we are funding innovative and exciting projects that make a real difference to the lives of our patients and their families and the staff that take care of them.

By 2025, we will demonstrate that we have been a key enabler of improving and transforming healthcare across Lincolnshire.

Our Mission:

Support United Lincolnshire Hospitals NHS Trust to provide outstanding care, personally delivered.

The objects for the Charity as described within the Trust deed are:

“The trustee shall hold the Trust fund upon Trust to apply the income, and at their discretion, so far as may be possible, the capital for any charitable purpose or purposes relating to the National Health Service”

Our Governance Structure and Management

The United Lincolnshire Hospitals NHS Trust Charitable Fund is constituted by deed of Trust and was entered onto the central register of Trustees on 17 August 1996.

The Charity is managed by the voting members of the Trust Board in their role as corporate trustee. The Trust Board comprises the chair, non-executive and executive directors. Nonexecutive members of the Trust Board are recruited by the Chief Executive. Members are governed by approved standing orders and standing financial instructions, based on the Department of Health template. Trust Board members are provided with training in order to enable them to discharge their responsibilities. Rates of remuneration are set by the Trust Remuneration Committee for executive directors and for non-executives are based upon national pay rates.

Organisational Structure

The corporate trustee (NHS Trust Board) has overall responsibility for the charity. However, under the agreed scheme of delegation, the Charitable Funds Committee, chaired by a nonexecutive director, oversees the management and monitoring of charitable funds.

United Lincolnshire Hospitals Charity

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The Charitable Funds Committee (CFC) meet at least three times a year. Their role is to approve and direct the strategy of the Charity to ensure the Charity remains on track and is properly and effectively managed. The Charitable Funds Committee also approve Charity Spend up to £50,000, with expenditure above this requiring the agreement of the full Trustee body.

Members of the charitable funds committee are selected to give the charity a good mix of appropriate professional skills – for example, medical, finance and fundraising.

During 2021/22 the CFC have approved to fund a Research Assistant, improvements to outside spaces, Ready Sleeper Bed Chairs for relatives of children, a Charity CRM System and much more. The fundraising plan for 2022 was agreed including the first Christmas Campaign which ran in 2021, Upon a Star. The updated Governance document has been updated to reflect the changes within the charity that have occurred due to the strategic focus during this year.

The day to day administration of the funds have been handled within the Charity Team, under the supervision of the Charity Manager and Assistant Director of Finance. The executive director and trustee responsible for the Finance department and Charity Team during 2021/22 was the Director of Finance and Digital and Director of People and OD, Paul Matthew.

Investment policy

The funds of the United Lincolnshire Hospitals NHS Trust Charity are invested with CCLA Investment Management Ltd. Holdings are split between two funds:

The Trustee’s decision to invest within the Ethical Investment Fund was driven by its investment policy as summarised below. This along with other policies are reviewed annually.

Investment policy

Risk profile – low

(Portfolio will avoid stocks and shares that may fluctuate significantly in value).

Restrictions – The Charity’s investment portfolio should not knowingly invest in:

United Lincolnshire Hospitals Charity

Page 4 of 34

Growth – The intention should be to ensure that over the medium to long term income and capital growth should at least match inflation.

Given this view, the Trustee seeks to hold an appropriate level of investments split between equities and short-term cash equivalent investments. The Trustee authorises its investment managers to manage movements between long term investments and cash equivalents to ensure compliance with this policy.

The aim of the COIF Ethical Investment Fund is over the long term to achieve an average total return each year of inflation plus 5%. The fund is managed to meet clear ethical and responsible investment standards and consequently investments in companies that have significant involvement in tobacco, alcohol, pornography, gambling, energy, coal extraction and strategic military sales are excluded.

Investment performance is monitored by the charitable funds committee by reviewing regular reports from the investment managers. The movement in the stock market affects the value of our investments. This year we have an unrealised gain of £297,375. This makes little difference to the day- to-day running of the charity until the point that we have to sell our investments and realise the gain or loss.

Reserves Policy

This policy sets out the circumstances and limitations for holding of reserves by the United Lincolnshire Hospitals NHS Trust Charitable Fund (the Charity) as required by the Charity Commission Statement of Recommended Practice (SORP) 2015.

Charity reserves, as defined under SORP 2015, are those funds which become available to the charity to be spent at the trustee’s discretion in furtherance of the charity’s objectives, but which are not yet spent or committed or could only be realised through the disposal of fixed assets. These are therefore classified as ‘free’.

United Lincolnshire Hospitals Charity

Page 5 of 34

The level of free reserves at 31 March 2022 stood at £1,890,056 and was calculated as follows:

follows:
Total unrestricted funds: £1,890,993
Less designated funds: £ 937
Total Free Reserves: £1,890,056

The Trustee is under a legal duty to apply charity funds within a reasonable time of receiving them.

This policy aims to set out:

Reason for holding reserves

The Trustee consider it necessary to retain reserves over the longer term to:

Reserves are covered further on pages 10 - 11

United Lincolnshire Hospitals Charity

Page 6 of 34

Our money

Money available for future investments

The United Lincolnshire Hospitals NHS Trust Charitable Fund has £5.5m of resources available for investment in initiatives to support NHS healthcare in Lincolnshire moving into 2022/23.

This balance is split between:

Restricted funds (£3,560,476)

These are donations which must be used for specific purposes (set out by, for example, the donor(s) at the point of donation - including bequests - or by the terms of a public appeal or even by the terms of a grant).

Funds are classified as ‘restricted’ if they are subject to trusts.

Unrestricted funds (£1,890,993)

These are funds which are given to a charity (whether solicited or unsolicited) without any restrictions imposed by the particular donor or grant maker.

Donations are presumed to be unrestricted (and not subject to a ‘trust’) unless there is positive evidence of an unequivocal restriction being placed by the donor.

United Lincolnshire Hospitals Charity

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Financial Headlines 2021/2022

In 2021/22 income totalled £537,027

Donations : Are kindly given by the public, by local companies and other charities who give us grants to fund particular projects or equipment. We are again hugely grateful to all those who have donated this year.

Charitable Activities: We are hugely grateful to our staff and members of the public who kindly fundraise for us.

Legacies : Investment A gift left in income: memory of a loved The Charity one is an invests investment into the funds that future of are not healthcare for needed Lincolnshire. We immediately are so fortunate to in order to be remembered by obtain a people within our return. communities.

Our thanks also to NHS Charities Together for the £88,000 grant received this year targeted specifically at the physical and mental wellbeing of staff.

In 2021/22 the Charity ran its first ‘Upon a Star’ campaign which attracted sponsorship from a number of local businesses and lit up hospital buildings across each site.

United Lincolnshire Hospitals Charity

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In 2021/22 expenditure totalled £822,678

Research &
Devt: In
2021/22 we
have been
able to fund a
12 month
research post
Patient Welfare
& Amenities:
In total £227,666
was spent which
has helped
improve the care
and treatment of
patients.
Items purchased
include:
Readybed
sleeper chairs
for parents to
stay with
children
undergoing
treatment
Recliner chairs
for patients
being assessed
within the
oncology unit
Custom
headboard
system to aid
with elderly
care needs
Equipment
–We have
purchased:
Blanket
warming
cabinet to
support
newborns
Endoscopy
Track &
trace
system
Baby
monitoring
alarms
Patient
tables,
chairs &
cabinets		 Research &
Devt: In
2021/22 we
have been
able to fund a
12 month
research post
Patient Welfare
& Amenities:
In total £227,666
was spent which
has helped
improve the care
and treatment of
patients.
Items purchased
include:
Readybed
sleeper chairs
for parents to
stay with
children
undergoing
treatment
Recliner chairs
for patients
being assessed
within the
oncology unit
Custom
headboard
system to aid
with elderly
care needs
Equipment
–We have
purchased:
Blanket
warming
cabinet to
support
newborns
Endoscopy
Track &
trace
system
Baby
monitoring
alarms
Patient
tables,
chairs &
cabinets
Patient Welfare
& Amenities:
In total £227,666
was spent which
has helped
improve the care
and treatment of
patients.
Items purchased
include:
Readybed
sleeper chairs
for parents to
stay with
children
undergoing
treatment
Recliner chairs
for patients
being assessed
within the
oncology unit
Custom
headboard
system to aid
with elderly
care needs
Equipment
–We have
purchased:
Blanket
warming
cabinet to
support
newborns
Endoscopy
Track &
trace
system
Baby
monitoring
alarms
Patient
tables,
chairs &
cabinets

Staff Welfare & Amenities : Throughout the pandemic, donations have allowed the Charity to support the staff at the Trust in many ways. In 2021/22 £472,713 was spent – here are just a few examples:

Further details along with a look forward to our plans for 2022/23 can be found within our Impact Report.

United Lincolnshire Hospitals Charity

Page 9 of 34

Risk management

The trustee is legally required to manage and minimise significant risks to the United Lincolnshire Hospitals NHS Trust Charitable Fund.

The Charity’s overarching Governance document identifies risks within three categories:

Financial

We invest any surplus funds through the CCLA Charitable Investment Fund (COIF) which aims to provide low risk long term total return in capital and distribution.

Reputational

Fundraising

United Lincolnshire Hospitals Charity

Page 10 of 34

Cash Reserve

The Charity will aim to spend 33% of the opening balance on restricted and unrestricted – designated funds within the financial year. This is monitored during the year by the Charitable Funds Committee. The Charity will maintain cash reserves sufficient to fund one year’s grant-making and support costs.

This equates to a cash reserve balance based upon 1 April 2021 balances.

Where it is felt that funds are not assisting in the achievement of the Charity’s objectives (i.e. a fund is consistently under achieving the 33% target) the Charitable Funds Committee may agree to release those funds into the generally available funds for reallocation.

The level of reserves held at 31 March 2022 of £1.5m is below this target but is within the levels of Grant Making Activities for each of the last two financial years (2021/22: £0.8m; 2020/21: £0.9m;).

Over the next 12 months the Trustee supported by the newly established Charity Team will continue working with Trust Management and Clinicians within the Divisional Structures to determine priorities and direct Grants towards those areas where they can provide maximum impact.

The Trustee will closely monitor compliance with the Cash reserves policy and target during 2022/23.

General Reserve

A general reserve shall maintain a minimum balance sufficient to continue the day-to-day operations and governance arrangements of the Charity for two years.

In the event that it becomes apparent that the Charity is no longer a going concern, the Corporate Trustee may begin proceedings to wind up the Charity, or alter its structure accordingly. The general reserve balance of two years day-to-day operations and governance arrangements is sufficient to facilitate this process.

Investment Reserve

In order to maximise returns, investments may be made in market-linked non-cash assets. The valuation of these will vary over the term of the investment in line with short-term fluctuations in the market.

At the end of each accounting period a valuation is made which will indicate a gain or loss over the period.

In principle, gains will be distributed to individual charitable funds in proportion to their average balance over the period.

United Lincolnshire Hospitals Charity

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Losses will similarly be shared between funds in proportion to the average balance over the period.

In order to minimise the effect on individual unrestricted funds in loss making periods, the Charity endeavours to keep a minimum investment reserve of £200,000.

Any losses then made will first be offset against this reserve before apportioning any remaining balance between individual funds.

The first call on any gains made in an accounting period must be to ensure the investment reserve balance is increased if necessary to £200,000.

At times of cash surplus and buoyant stock market conditions this policy may be suspended with the agreement of the Director of Finance and Digital acting on behalf of the Charity. At 31 March 2022, following reductions in stock market valuations, the balance of investment reserve had been fully utilised.

Related parties

The United Lincolnshire Hospitals NHS Trust Charitable Fund has made revenue and capital payments to United Lincolnshire Hospitals NHS Trust. All expenditure was in accordance with the wishes of the respective donors. There were no other related party transactions that require disclosure.

Public benefit disclosures

In order to satisfy the 'public benefit requirement’ under the Charities Act 2011, a charity must be able to demonstrate that:

As described at various points throughout this and the Charity’s inaugural Impact report, the United Lincolnshire Hospitals NHS Trust Charitable Fund has made Grants of £822,679 funding a variety of activities and physical assets to benefit patients, staff and the wider public within Lincolnshire.

Grants are made in accordance with charity law, our constitution and the wishes and directions of donors. In making grants, we endeavour to reflect the wishes of patients and staff by directing funds towards areas they tell us are most in need. When considering where to focus our attention our corporate trustee’s board and, particularly, the members of the charitable funds committee have regard to the Charity Commission for England and Wales’s guidance on public benefit and what this means for the United Lincolnshire Hospitals’ Charity.

United Lincolnshire Hospitals Charity

Page 12 of 34

References and Administrative Details

Election of Trustees

The United Lincolnshire Hospitals NHS Trust is the corporate trustee for the charity. Under charity law, individual voting board members are not trustees, but act as agents on behalf of the corporate trustee.

The members of the United Lincolnshire Hospitals NHS Trust Board during the financial year 2021/22 are listed below:

Name Title Directors in post Directors in post
Financial year
2021/22		 5 January 2023
Accounts
approval
Elaine Baylis Trust Chair x x
Sarah Dunnett Non-Executive Director x
Dr Chris Gibson Non-Executive Director x x
Geoff Hayward Non-Executive Director x
Elizabeth
Libiszewski		 Non-Executive Director x
Gill Ponder Non-Executive Director x
Professor Philip
Baker		 Non-Executive Director x x
David Woodward Non-Executive Director x
Dani Ceccini Non-Executive Director x x
Alison Dickinson Non-Executive Director x
Gail Shadlock Non-Executive Director x
Rebecca Brown Non-Executive Director x
Neil Herbert Non-Executive Director x
Andrew Morgan Chief Executive x x
Paul Matthew Director of Finance and
Digital		 x x
Simon Evans Chief Operating Officer x x
Karen Dunderdale Director of Nursing x x
Dr Paul Dunning Interim Medical Director x
Dr Colin
Farquharson		 Medical Director x x
Dr Neill Hepburn Medical Director x

United Lincolnshire Hospitals Charity

Page 13 of 34

Charitable Trust Account – United Lincolnshire Hospitals NHS Trust

2021 -2022

Statement of Trustee responsibilities in respect of the Trustee annual report and the financial statements

Under the trust deed of the charity and charity law, the trustees are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and regulations.

The financial statements are required by law to give a true and fair view of the state of affairs of the charity and of the excess of income over expenditure for that period. In preparing these financial statements, generally accepted accounting practice entails that the trustees:

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

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

The Trustees confirm that they have met the responsibilities set out above and complied with the requirements for preparing the accounts. The financial statements set out on pages 19 to 21 have been compiled from and are in accordance with the financial records maintained by the Trustees.

United Lincolnshire Hospitals Charity

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By Order of the Trustee Signed:

Elaine Baylis

.................................................................................... Date : 5 January 2023

Elaine Baylis Chair

Paul Matthew

.................................................................................... Date : 5 January 2023 Paul Matthew Director of Finance and Digital

United Lincolnshire Hospitals Charity

Page 15 of 34

Independent Auditor’s Report to the Trustees of the United Lincolnshire Hospitals Charitable Funds 2021/22

We have audited the financial statements of United Lincolnshire NHS Trust Charitable Funds (the 'charity') for the year ended 31 March 2022 which comprise the Statement of Financial Activities, the Balance sheet, the Statement of Cash Flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

The financial statements have been prepared in accordance with Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standards applicable in the UK and Republic of Ireland (FRS 102) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice which is referred to in the extant regulations but has been withdrawn.

This has been done in order for the accounts to provide a true and fair view in accordance with the Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.

In our opinion the financial statements:

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 Auditors' 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 United Kingdom, including the Financial Reporting Council'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 trustee's 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.

United Lincolnshire Hospitals Charity

Page 16 of 34

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

OTHER INFORMATION

The trustee is responsible for the other information. The other information comprises the information included in the Annual report, other than the financial statements and our Auditors' report thereon. 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 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

We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:

RESPONSIBILITIES OF TRUSTEES

As explained more fully in the Trustee's responsibilities statement, the trustee is responsible for the preparation of the financial statements which give a true and fair view, and for such internal control as the trustee determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustee is 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 trustee either intends to liquidate the charity or to cease operations, or have no realistic alternative but to do so.

AUDITORS' RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS

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

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' 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

United Lincolnshire Hospitals Charity

Page 17 of 34

be expected to influence the economic decisions of users taken on the basis of these financial statements.

‑ Irregularities, including fraud, are instances of non compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Our approach to identifying and assessing the risks of material misstatement in respect of ‑ irregularities, including fraud and non compliance with laws and regulations, was as follows:

The engagement partner ensured that the engagement team collectively had the appropriate ‑ competence, capabilities and skills to identify or recognise non compliance with applicable laws and regulations;

We assessed the susceptibility of the charity's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

To address the risk of fraud through management bias and override of controls, we:

‑ In response to the risk of irregularities and non compliance with laws and regulations, we designed procedures which included, but were not limited to:

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non ‑ compliance. Auditing standards also limit the audit procedures required to identify noncompliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

United Lincolnshire Hospitals Charity

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Material misstatements that arise due to fraud can be harder to detect than those that arise

from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

USE OF OUR REPORT

This report is made solely to the trustee 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 trustee those matters we are required to state to them in an Auditors' 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 trustee for our audit work, for this report, or for the opinions we have formed.

Streets Audit LLP Chartered Accountants and Statutory Auditor Tower House Lucy Tower Street Lincoln, LN1 1XW

Date: 11 January 2023

Streets Audit LLP are eligible to act as auditors in terms of section 1212 of the Companies Act 2006.

United Lincolnshire Hospitals Charity

Page 19 of 34

Statement of Financial Activities for the year ending 31 March 2022

Note 2021/22
2020/21
2021/22
2020/21
2021/22
2020/21
£
£
£
£
£
£
Unrestricted Funds
Restricted Funds
Total Funds
Income and endowments from:
Donations
3
Legacies
3
Charitable activities
4
Investments
5		 187,758
116,923
0
1,187
187,758
118,110
0
0
140,822
231,740
140,822
231,740
10,440
0
88,000
158,100
98,440
158,100
59,137
57,480
50,870
48,820
110,007
106,300
Total incoming resources 257,335
174,403
279,692
439,847
537,027
614,250
Expenditure on:
Raising funds
6
Charitable activities
7
- Equipment purchased
- Patients welfare and amenities
- Research and development
- Staff welfare training and amenities		 27,150
197
0
19
27,150
216
14,808
561,306
44,559
50,379
59,367
611,685
130,285
46,369
97,381
43,043
227,666
89,412
0
0
35,782
0
35,782
0
375,701
51,270
97,012
107,485
472,713
158,755
Total expenditure 547,944
659,142
274,734
200,926
822,678
860,068
Net gains/(losses) on Investments
14 / 17
162,053
319,076
135,811
268,870
297,864
587,946
Net income / (expenditure) (128,556)
(165,663)
140,769
507,791
12,213
342,128
Transfers between Funds
20		 0
(35,000)
0
35,000
0
0
Net movement in funds (128,556)
(200,663)
140,769
542,791
12,213
342,128
Reconciliation of funds:
Total funds brought forward
22		 2,019,549
2,220,212
3,419,707
2,876,916
5,439,256
5,097,128
Total funds carried forward
22		 1,890,993
2,019,549
3,560,476
3,419,707
5,451,469
5,439,256

The Statement of Financial Activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities

The notes at pages 22 to 33 form part of the accounts.

United Lincolnshire Hospitals Charity

Page 20 of 34

Balance Sheet as at 31[st] March 2022

Note 2021/22
2020/21
2021/22
2020/21
2021/22
2020/21
£
£
£
£
£
£
Unrestricted Funds
Restricted Funds
Total Funds
Fixed Assets
Investments
14		 2,069,697
1,908,133
1,740,083
1,604,272
3,809,780
3,512,405
Total Fixed Assets 2,069,697
1,908,133
1,740,083
1,604,272
3,809,780
3,512,405
Current Assets
Stocks
15
Debtors
16
Investments
17
Cash and cash equivalents		 30
6,965
0
0
30
6,965
91,008
19,642
198,389
83,999
289,397
103,641
126,070
125,580
94,099
94,100
220,169
219,680
(103,709)
(9,905)
1,555,388
1,640,233
1,451,679
1,630,328
Total Current Assets 113,399
142,282
1,847,876
1,818,332
1,961,275
1,960,614
Liabilities:
18
Creditors: Amounts falling
due within one year		 292,103
30,866
27,483
2,897
319,586
33,763
Net Current Assets (178,704)
111,416
1,820,393
1,815,435
1,641,689
1,926,851
Total Net Assets 1,890,993
2,019,549
3,560,476
3,419,707
5,451,469
5,439,256
The funds of the Charity
22
Income Funds:
Restricted funds
Unrestricted funds		 3,560,476
3,419,707
3,560,476
3,419,707
1,890,993
2,019,549
1,890,993
2,019,549
Total Charity Funds 1,890,993
2,019,549
3,560,476
3,419,707
5,451,469
5,439,256

The notes at pages 22 to 33 form part of the accounts

The financial statements on pages 19 to 33 were approved by the Trustee on 5[th] January 2023 and signed on their behalf by:

Elaine Baylis

………………………………………………… Elaine Baylis Chair

Date: 5 January 2023

Paul Matthew

…………………………………………………

Date: 5 January 2023

Paul Matthew Director of Finance and Digital

United Lincolnshire Hospitals Charity

Page 21 of 34

Statement of Cash Flow at 31 March 2022

Note
Cash flows from operating activities:		 2021-22
2020-21
£
£
Net cash provided by (used in) operating activities
19		 (287,768)
(359,697)
Cash flows from investing activities:
Dividends and interest from investments		 109,119
106,785
Net cash provided by (used in) investing activities 109,119
106,785
Change in cash and cash equivalents in the reporting period
Cash and cash equivalents at the beginning of the reporting period		 (178,649)
(252,912)
1,630,328
1,883,240

Cash and cash equivalents at the end of the reporting period		 1,451,679
1,630,328

Analysis of net debt

At 1 April **Cash flows ** At 31 March
2021 2022
£ £ £
Cash and cash equivalents 1,630,328 (178,649) 1,451,679

United Lincolnshire Hospitals Charity

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Notes to the Accounts

1. Accounting Policies

(A) Basis of Preparation

The financial statements have been prepared under the historic cost convention, with the exception of investments which are included at market value.

The accounts (financial statements) have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued in October 2019 and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011 and UK Generally Accepted Practice as it applies from 1 January 2019.

The accounts (financial statements) have been prepared to give a 'true and fair' view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a 'true and fair view'. This departure has involved following Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued in October 2019 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.

The trustee considers that there are no material uncertainties about United Lincolnshire Charitable Funds NHS Trust ability to continue as a going concern. The Covid-19 Pandemic continues to have an impact on the charity's fund raising income for unrestricted funds although this is partially offset by restricted income from the NHS Charities Together national appeal. As a grant making charity with few on-going commitments, this is unlikely to affect the charity's ability to continue as a going concern. There are no material uncertainties affecting the current year's accounts.

The key risks to United Lincolnshire Charitable Funds NHS Trust's continuing going concern status are a fall in income from donations or investment income but the trustee has arrangements in place to mitigate those risks.

(B) Fund Structure

Where there is a legal restriction on the purpose to which a fund may be put, the fund is classified as a restricted income fund. Funds where the capital is held to generate income for charitable purposes and cannot itself be spent are accounted for as endowment funds. Those funds which are neither endowment nor legally bound restricted income funds, are unrestricted income funds which are sub-analysed between designated funds where the donor has made known their non-binding wishes or where the trustees, at their discretion,

United Lincolnshire Hospitals Charity

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have created a specific fund for a specific purpose, and wholly unrestricted funds which are wholly at the Trustees’ unfettered discretion.

The charity has no expendable endowments.

The major funds held in each of these categories are disclosed in note 22.

(C) Going Concern

There are no material uncertainties about the Charity’s ability to continue.

(D) Public Benefit

The Charity is a Public Benefit Entity

(E) Incoming Resources

Income is recognised in the statement of financial activities (SoFA) when a transaction or other event results in an increase in the charity's assets or a reduction in its liabilities. Income is only recognized when all of the following criteria are met:

Entitlement: control over the rights or access to the economic benefit has passed to the charity.

Probable: it is more likely than not that the economic benefits associated with the transaction or gift will flow to the charity.

Measurable: the monetary value or amount of the income can be measured reliably and the costs incurred for the transaction and the costs to complete the transaction can be measured reliably.

(F) Interest Receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the Bank.

(G) Incoming resources from legacies

Legacies are accounted for as incoming resources either upon receipt or where the receipt of the legacy is probable. Receipt is probable when:

United Lincolnshire Hospitals Charity

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If there is uncertainty as to the amount of the legacy and it cannot be reliable estimated, then the legacy is shown as a contingent asset until all of the conditions for income recognition are met.

(H) Resources expended and irrecoverable VAT

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

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

(I) Allocation of Support and Governance costs

Support and Governance costs are apportioned between unrestricted and restricted funds in proportion to total income and spend. This is shown in note 10.

(J) Raising Funds

The cost of raising funds relate to fees with the online donation platform, the purchase of donation envelopes and buckets.

(K) Charitable activities

Costs of charitable activities comprise all costs incurred in the pursuit of the charitable objects of the charity. These costs, where not wholly attributable, are apportioned between the categories of charitable expenditure in addition to the direct costs. The total costs of each category of charitable expenditure include an apportionment of support costs is shown in the statement of financial activities.

(L) Governance costs

Governance costs comprise all costs identifiable as wholly or mainly attributable to ensuring the public accountability of the charity and its compliance with regulation and good practice. These costs include costs related to statutory audit.

(M) Fixed asset investments

Investments are stated at market value as at the balance sheet date. Quoted stocks and shares are included in the balance sheet at mid-market price. The statement of financial activities includes the net gains and losses arising on revaluation and disposals throughout the year. Income from investments is apportioned on the basis of average monthly fund balance.

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(N) Stocks

Stocks are valued at the lower of cost and net realisable value using the first in first out cost format.

(O) Debtors

Debtors are amounts owed to the charity. Trade and other debtors are measured on the basis of their recoverable amount. Prepayments are valued at the amount prepaid.

(P) Cash at bank and in hand

Cash at bank and in hand includes cash and short term highly liquid investments with a short maturity.

(Q) Creditors and provisions

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.

(R) 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 sales proceeds and price paid at date of purchase: this will include gains/losses shown previously as unrealised that have now been realised. Unrealised gains and losses are calculated as the difference between market value at the year end and opening market value (or date of purchase if later).

(S) Pensions

The charity does not directly employ staff.

The management charge in the Statement of Financial Activities includes the cost of employer pension contributions to the NHS Superannuation Scheme.

(T) Non-Consolidation of Accounts

Following Treasury's agreement to apply IFRS 10 to NHS Charities from 1st April 2013, the United Lincolnshire Hospitals NHS Trust has established that it is the Corporate Trustee of the linked NHS Charity - United Lincolnshire Hospitals NHS Trust Charitable Funds, it effectively has the power to exercise control so as to obtain economic benefits. However the transactions are immaterial in the context of the group and transactions have not been consolidated. Details of the transactions with the United Lincolnshire Hospitals NHS Trust are included in the related parties' notes.

United Lincolnshire Hospitals Charity

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2. Related Party Transactions

The United Lincolnshire Hospitals NHS Trust is the corporate Trustee and is the sole beneficiary of the charity. The charity has made a number of grants to support and improve the services provided by the United Lincolnshire Hospitals NHS Trust. The total expenditure amounted to £822,678 (2020-21 £860,068) as detailed in statement of financial activities. During the year none of the Trustees or members of the key management staff or parties related to them were beneficiaries of the charity.

The outstanding balances with United Lincolnshire NHS Trust are set out in notes 16 and 18. Neither the Corporate Trustee nor any member of the NHS Trust Board has received honoraria, emoluments or expenses in the year and the Trustee has not purchased trustee indemnity insurance.

3. Income from Donations and Legacies

2021/22
2020/21
2021/22
2020/21
2021/22
2020/21
£
£
£
£
£
£
Unrestricted Funds
Restricted Funds
Total Funds
Donations from individuals
Corporate donations
Legacies		 163,985
105,120
0
1,187
163,985
106,307
23,773
11,803
0
0
23,773
11,803
0
0
140,822
231,740
140,822
231,740
Total 187,758
116,923
140,822
232,927
328,580
349,850

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

The Legacies have been accounted for in the financial year that we have received confirmation of amount in the form of Estate accounts or receipt of funds.

4. Analysis of income from charitable activities

2021/22
2020/21
2021/22
2020/21
2021/22
2020/21
£
£
£
£
£
£
Unrestricted Funds
Restricted Funds
Total Funds
Charity golf day
Charity football match
Christmas Stars
Stage 3 grant from NHS Charities
Together
Stage 1 grant from NHS Charities
Together
Other grant from NHS Charities
Together		 840
0
0
0
840
0
100
0
0
0
100
0
9,500
0
0
0
9,500
0
0
0
88,000
0
88,000
0
0
0
0
156,000
0
156,000
0
0
0
2,100
0
2,100
Total 10,440
0
88,000
158,100
98,440
158,100

In 2021/22 and 2020/21 the charity received grants from the NHS Charities Together Covid19 emergency appeal.

United Lincolnshire Hospitals Charity

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5. Gross Investment Income

2021/22
2020/21
2021/22
2020/21
2021/22
2020/21
£
£
£
£
£
£
Restricted Funds
Total Funds
Unrestricted Funds
Investments listed on Stock
Exchange or Common Investment
Fund
Cash held at bank (Interest)		 58,587
57,539
49,907
49,015
108,494
106,554
550
(59)
963
(195)
1,513
(254)
Total 59,137
57,480
50,870
48,820
110,007
106,300

6. Analysis of expenditure on raising funds

2021/22
2020/21
2021/22
2020/21
2021/22
2020/21
£
£
£
£
£
£
Unrestricted Funds
Restricted Funds
Total
Christmas star decorations
Bank transaction charges
Donation envelopes
Other
Support costs		 17,083
0
0
0
17,083
0
50
181
0
14
50
195
5,236
0
0
0
5,236
0
1,035
0
0
0
1,035
0
3,746
16
0
5
3,746
21
Total 27,150
197
0
19
27,150
216

7. Analysis of charitable expenditure

2021/22
2020/21
2021/22
2020/21
2021/22
2020/21
£
£
£
£
£
£
Grant funded activity
Support costs
Total
Unrestricted funds
Equipment purchased
Patients welfare and
amenities
Research and development
Staff welfare training and
amenities		 12,765
513,477
2,043
47,829
14,808 561,306
112,308
42,418
17,977
3,951
130,285
46,369
0
0
0
0
0
0
323,861
46,901
51,840
4,369
375,701
51,270
Total unrestricted funds 448,934
602,796
71,860
56,149
520,794 658,945
2021/22
2020/21
2021/22
2020/21
2021/22
2020/21
£
£
£
£
£
£
Grant funded activity
Support costs
Total
Restricted funds
Equipment purchased
Patients welfare and
amenities
Research and development
Staff welfare training and
amenities		 32,924
38,297
11,635
12,082
44,559
50,379
71,954
32,721
25,427
10,322
97,381
43,043
26,439
0
9,343
0
35,782
0
71,681
81,709
25,331
25,776
97,012 107,485
Total restricted funds 202,998
152,727
71,736
48,180
274,734 200,907

United Lincolnshire Hospitals Charity

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8. Analysis of charitable expenditure

The charity does not make grants to individuals. All grants are made to United Lincolnshire Hospitals NHS Trust to provide care of NHS patients in furtherance of our charitable aims. The total cost of making grants, including support costs, is disclosed on the face of the Statement of Financial Activities and the actual funds spent on each category of charitable activity is disclosed in note 7.

The trustees operate a scheme of delegation under which fund holders approve expenditure from the funds they are responsible for in accordance with the:

9. Movements in funding commitments

Wellbeing
Support		 Total
£ £
Outstanding at 31 March 2021 0 0
Amounts charged to SOFA for the period 0 0
Amounts released for the period 0 0
Increase in intentions for the period 0 0
Outstanding at 31 March 2022 0 0
Planned Material commitments after 31 March 2022
Due within one year 87,167 87,167
Due over more than one year 67,000 67,000
Total expected spend 154,167 154,167

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10. Allocation of support costs and overheads

Support and overhead costs are allocated between fundraising activities and charitable activities.

The bases of allocation used are as follows:

The Trust initially identifies the costs of its support functions and Governance costs; these are then apportioned between the key charitable activities as shown above.

2021/22
2020/21
2021/22
2020/21
2021/22
2020/21
£
£
£
£
£
£
Raising funds
Charitable activities
Total
Bank charges
Salaries and other
support costs
External audit		 18
0
685
735
703
735
3,653
20
140,046
100,655
143,699
100,675
75
1
2,865
2,939
2,940
2,940
3,746
21
143,596
104,329
147,342
104,350
2021/22
2020/21
2021/22
2020/21
2021/22
2020/21
£
£
£
£
£
£
Charitable activities
Total
Raising funds
Unrestricted funds
Restricted funds		 3,746
16
71,860
56,149
75,606
56,165
0
5
71,736
48,180
71,736
48,185
3,746
21
143,596
104,329
147,342
104,350

11. Trustee remuneration, benefits and expenses

The trust has a corporate trustee, the board members are not remunerated through the Trust for their role and they receive no expenses.

12. Analysis of Staff Costs

The Charity does not directly employ staff, salary costs relates to staff employed by United Lincolnshire Hospitals NHS Trust which are recharged.

13. Auditors Remuneration

Auditors remuneration of £2,940 related solely to the audit and no additional work was undertaken (2020-21 £2,940).

United Lincolnshire Hospitals Charity

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14. Fixed Asset Investments held in UK

Units held At
Movement in fixed asset investment 31 March 2021/22 2020/21
£ £
CCLA COIF Ethical Fund
Market value at 31 March 2021 1,283,445.32 3,512,405 2,924,459
Add: additions to investments at cost 0 0
Less disposals at carrying value 0 0
Net gain/(loss) on revaluation 297,375 587,946
Balance at 31 March 2022 1,283,445.32 3,809,780 3,512,405

The units held are valued in accordance with the information supplied by CCLA COIF as at 31st March.

15. Stocks and Work in Progress

Retirement
Goods
Total
£
£
Balance at 1 April 2021
Additions in year
Inventories recognised as an expense in period		 6,965
6,965
12,142
12,142
(19,077)
(19,077)
Balance at 31 March 2022 30
30

16. Analysis of current debtors

2021/22
2020/21
£
£
Amounts owed by group and associated undertakings
Other debtors
Prepayments and accrued income		 170
833
270,369
83,999
18,858
18,809
Total 289,397
103,641

Amounts owed by group and associated undertakings include £170 (2020-21 £833) with United Lincolnshire Hospitals NHS Trust.

No debtors fall due after more than one year.

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17. Analysis of current asset investment held in UK

2021/22
2020/21
£
£
Current Assets (COIF Deposit Account)
Cash held as part of the investment portfolio		 218,204
218,204
Total market value of COIF current asset investments 218,204
218,204
Asset held in other investment funds Artemis
Market Value at 31 March
Net gain/(loss) on revaluation		 1,476
1,476
489
0
Total market value of assets held in other investments funds 1,965
1,476
Total market value of current asset investments 220,169
219,680

No current asset investments were held outside of the UK

All of the amounts held on COIF Deposit account and investment funds are available to spend on charitable activities.

18. Analysis of current liabilities

2021-22
2020-21
£
£
Creditors under 1 year
Amounts due to subsidiary and associated undertakings
Other creditors
Accruals and deferred income		 149,928
7,069
166,682
26,658
2,976
36
Total 319,586
33,763

Amounts due to subsidiary and associated undertakings is £149,928 (2020-21 £7,069) with United Lincolnshire Hospitals NHS Trust.

There are no creditors falling due after more than one year.

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19. Cash Flow

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

Adjustments for: 2021-22
2020-21
£
£
Net income for the reporting period
(Gain) / Loss on investments
Dividends and interest from investments
(Increase) / decrease in current investments
(Increase) / decrease in stock
(Increase) / decrease in debtors
Increase / (decrease) in creditors		 12,213
342,128
(297,375)
(587,946)
(110,007)
(106,300)
(489)
3,634
6,935
23,585
(184,868)
(50,671)
285,823
15,873
Net cash provided by operating activities (287,768)
(359,697)

20. Transfers between funds

There were transfers of £6,295 between restricted funds in 2021/22 as per the details on note 22.

21. Post Balance sheet Events

The market value of the Charity's fixed investments in the Charities Official Investment Fund (COIF) Units has reduced since the end of the financial year. The value of investments as at 30 September 2022 is set out in the table below.

Investment Value 31-03-22 Value 30-09-22 Decrease %
£ £ £
Ethical Fund 3,809,780 3,537,560 (272,220) -7.15%

22. Analysis of Charitable Funds by Structure

The Charity receives numerous donations throughout the year some of which have restrictions put on them by the donor, predominantly in the form of Legacies or specific legal caveats. Where this is the case these incoming resources are placed in appropriate restricted funds. Each of these restricted funds have been assessed at the year-end as having sufficient resources to enable the donor's wishes to be carried out.

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A) Restricted Funds

Site Type (number) Fund Bfwd
31-03-21		 Incoming
resources		 Governance
Costs		 Resources
expended		 Gains and
Losses		 Transfers Fund Cfwd
31-03-22
£ £ £ £ £ £ £
Trustwide Patient and staff(4) 181,526 97,609 (17,488) (109,793) 5,799 (6,295) 151,358
Equipment (1) 433,910 6,516 (4,265) 0 17,275 0 453,436
Research(1) 433,410 6,304 (6,365) (21,800) 16,306 0 427,855
Lincoln Patient and staff(20) 806,939 122,321 (17,938) (33,012) 35,033 6,295 919,638
Equipment (1) 973 23,132 (5,161) (358) 856 0 19,442
Research(3) 237,248 3,547 (2,939) (4,639) 9,239 0 242,456
Pilgrim Patient and staff(12) 555,370 8,811 (6,571) (4,028) 21,928 0 575,510
Equipment (4) 113,067 1,698 (1,355) 0 4,492 0 117,902
Research(2) 17,202 258 (297) 0 680 0 17,843
Grantham Patient and staff(2) 250,860 3,746 (2,729) (1,769) 9,906 0 260,014
Louth Patient and staff(1) 246,556 3,608 (5,117) (27,599) 8,622 0 226,070
Equipment (1) 38,816 583 (441) 0 1,543 0 40,501
Skegness Patient and staff(1) 103,830 1,559 (1,070) 0 4,132 0 108,451
Total 3,419,707 279,692 (71,736) (202,998) 135,811 0 3,560,476

B) Unrestricted Funds

Site Type (number) Fund Bfwd
31-03-21		 Incoming
resources		 Governance
Costs		 Resources
expended		 Gains and
Losses		 Transfers Fund Cfwd
31-03-22
£ £ £ £ £ £ £
Trustwide Patient and staff 2,019,549 257,335 (75,607) (472,337) 162,053 0 1,890,993
**Total ** 2,019,549 257,335 (75,607) (472,337) 162,053 0 1,890,993

United Lincolnshire Hospitals Charity

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Acknowledgements

We make progress every-day to continue supporting the United Lincolnshire Hospitals NHS Trust to provide o utstanding care, personally delivered.

We are grateful for each and every donation we receive whether this be of time, in memory of a loved one, financial or physical. A big thanks goes to our supporters, community groups and businesses that have helped to support our work throughout 2021/22.

To stay in touch visit our website, www.ulhcharity.org.uk or find us on social media.

Thank you for all of us at the United Lincolnshire Hospitals Charity and United Lincolnshire Hospitals NHS Trust.

United Lincolnshire Hospitals Charity