OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

2024-03-31-accounts

Charitable Funds Annual Report 2023/2024 A » — —— 3 — Working Together 1 | Herefordshire and Worcestershire Health & Care NHS Trust Charitable Funds Annual Report and Accounts 2023/24 Registration number: . OutstandingCare 1060335

Contents

Contents
Foreward 3
1. Charity Governance, Structure and Management Arrangements 6
2. Goals, Objectives and Activities 8
3. Grant Making Policy 9
4. Financial Policy 10
5. Plans for future periods 13
Financial Accounts
Independent Examiners Report 15
Statement of Financial Activities 16
Balance Sheet 17
Statement of Cashflow 18
Accounting Policies 19

2 | Herefordshire and Worcestershire Health & Care NHS Trust Charitable Funds Annual Report and Accounts 2023/24 Registration number: 1060335

Foreward

This document records the activities and Financial Accounts for the financial year 1 April 2023 to 31 March 2024.

The Charity’s report and accounts include all the separately established funds administered for the public benefit by Herefordshire and Worcestershire Health and Care NHS Trust on behalf of the Charity. All the charitable funds held are for the benefit of patients and staff, their carers and the communities served. The patients of Herefordshire and Worcestershire Health and Care NHS Trust are the main beneficiaries of the Charity.

The Charity has a corporate trustee, Herefordshire and Worcestershire Health and Care NHS Trust. The members of the NHS Trust Board who served during the financial year were as follows:

Mr M. Yates Chair
Mrs S. Dugan Chief Executive
Mr R. Mackie Director of Finance and Deputy Chief Executive
Dr J. Devapriam Medical Director
Ms N. Willetts Director of Nursing and Quality
Mr M. Hall Chief Operating Officer
Mr M. Charters Non-Executive Director
Ms J Clarke Non-Executive Director
Ms C Cumino Non-Executive Director
Ms S Hincks Associate Non-Executive Director
Mr J. Morris Non-Executive Director
Ms T. Norris Non-Executive Director
Mr B Parmar Non-Executive Director
Mr S. Peak Non-Executive Director

The Charity is registered with the Charity Commission (No.1060335) in accordance with the Charities Act 2011.

3 | Herefordshire and Worcestershire Health & Care NHS Trust Charitable Funds Annual Report and Accounts 2023/24 Registration number: 1060335

Reference and administrative details

The Charity was registered on the Central Register of Charities on the 23 January 1997 under its predecessor name Worcestershire Mental Health Partnership NHS Trust Charity. The Charity comprises of a single fund following the consolidation of 10 linked charities as at 12 July 2017. For administrative purposes the notes to the accounts distinguish the types of fund held and disclose separately all material funds.

In April 2020 the Trust took over responsibility for mental health and learning disability services in Herefordshire, and in turn the charity has updated its name in line with the Trust which better reflects the broader services we provide and the wider community we serve.

Charitable funds received by the Charity are accepted, held and administered as funds and property held on trust relating to the health service in accordance with the National Health Service Act 1977, and the National Health Service and Community Care Act 1990 and these funds are held on trust by the Corporate Trustee.

Trustee

Herefordshire and Worcestershire Health and Care NHS Trust is the Corporate Trustee of the Charity governed by the law applicable to Trusts, principally the Trustee Act 2000 and the Charities Act 2011.

The NHS Trust Board has delegated the authority for the management of the Charity to the Trust’s Charitable Funds Committee which administers the funds on behalf of the Corporate Trustee. This committee was formed in January 1997 to increase the profile of the charitable funds within the organisation and to enhance the management structure of the Charity. The Committee meets at least three times a year to review and agree:

The names of those people who served as agents for the Corporate Trustee, as permitted under regulation 16 of the NHS Trusts (Membership and Procedures) regulations 1990 were as follows:

Ms S Hincks - Associate Non-Executive Director (appointed as Committee Chair, November 2023) Mr J. Morris - Non-Executive Director (Committee Chair, until November 2023) Ms C Cumino - Associate Non-Executive Director

Mr R. Mackie - Director of Finance and Deputy Chief Executive Ms D Lewis - Deputy Director of Finance Mr C. Lavalette - Head of Finance (Systems, Reporting and Planning) Ms J. Austin - Associate Director of Countywide Community Services Ms K. Stanbra - Associate Director of Countywide Community Services Ms E Webber - Deputy Associate Director, Countywide Community Services Ms K Pike - Associate Director of Integrated Community Services Mr B Parmar - Non-Executive Director Mr E. Caswell - Royal Bank Canada Brewin Dolphin (Investment Advisor) Mr W. Papirnik - Royal Bank Canada Brewin Dolphin (Investment Advisor)

4 | Herefordshire and Worcestershire Health & Care NHS Trust Charitable Funds Annual Report and Accounts 2023/24 Registration number: 1060335

Attendance at the Charitable Funds Committee in the financial year was as below:

----- Start of picture text -----
May August November February
2023 2023 2024 2024
----- End of picture text -----

J Morris S Hincks C Cumino R Mackie D Lewis C Lavelette J Austin K Stanbra E Webber K Pike B Parmar E Caswell W Papirnik

Principal Charitable Fund adviser to the Board

The Chair of the Charitable Funds Committee, under a scheme of delegated authority approved by the Corporate Trustee, has day-to-day responsibility for the management of the charitable funds and must personally approve, on behalf of the Corporate Trustee all expenditure above £2,000 using their delegated authority and will seek approval from the Committee for any expenditure in excess of £7,500.

The Charitable Funds Committee advises the Trust Board about the use of the charitable funds and oversees the day-to-day operation of those funds.

Legal and Administrative

The principal office for the Charity is:

Finance Department, Herefordshire and Worcestershire Health and Care NHS Trust 2 Kings Court, Charles Hastings Way. Worcester. Worcestershire WR5 1JR

Legal Advisors Bankers Investment Advisors Mills and Reeve Lloyds Bank PLC Royal Bank of Canada 78-84 Colmore Row The Cross Brewin Dolphin Birmingham Worcester 9 Colmore Row B3 2AB Worcestershire Birmingham WR1 3PY B3 2BJ

Independent Examiners

Deloitte Internal Auditors HALO, Counterslip Assurance 360 Redcliffe Wayside House Bristol Wilsons Lane BS1 6AJ Coventry CV6 6NY

5 | Herefordshire and Worcestershire Health & Care NHS Trust Charitable Funds Annual Report and Accounts 2023/24 Registration number: 1060335

1. Charity governance, structure and management arrangements

The Charity was established using the statutory remit contained within the NHS Act 2006 and all funds held on trust as at the date of registration were part of this Charity. Subsequent donations and gifts received by the Charity which are attributable to the original funds are added to those fund balances within the existing Charity.

The Corporate Trustee fulfils its legal duty by ensuring that funds are spent in accordance with the objectives of each fund. By designating funds, the Trustee respects the wishes of our generous donors to benefit patient care and advance the good health and welfare of patients, their carers and the staff who look after them. Where funds have been received which have specific restrictions set by the donor, a restricted fund will be established.

Members of the Trust Board and the Charitable Funds Committee are not individual trustees under charity law but act as agents on behalf of the Corporate Trustee. Non-Executive members of the Trust Board are appointed by the NHS England, Executive members and Associated Non-Executive Members of the Board are subject to recruitment by the NHS Trust Board.

Acting for the Corporate Trustee, the Charitable Funds Committee is responsible for the overall management of the charitable funds. The Committee is required to:

The Corporate Trustee has complied with the duty in section 4 of the Charities Act 2011 to have due regard to public benefit guidance published by the Charity Commission.

The Charity does not employ any staff and in order to keep transaction costs to a minimum and to simplify the process, the Charity relies upon staff employed by the Trustee to identify the appropriateness of funding requests.

The charity has not taken exemption from disclosure of any governance or management details. The charitable funds available for spending are allocated to specialities within the NHS Trust’s Service Delivery Unit management structure. Each allocation is managed by use of designated funds within the Charity.

The accounting records and the day-to-day administration of the funds are dealt with by the Finance Department located at Herefordshire and Worcestershire Health and Care NHS Trust, 2 Kings Court, Charles Hastings Way, Worcester, Worcestershire, WR5 1JR.

6 | Herefordshire and Worcestershire Health & Care NHS Trust Charitable Funds Annual Report and Accounts 2023/24 Registration number: 1060335

1.1 Training and development

The Charity takes an active role in the training and development of Trust Board members. Where new Board Members are appointed they receive individual induction training and are provided with information about the Charity, including:

Additionally the Charitable Funds Committee will arrange further training as appropriate.

1.2 Risk management

The Charitable Funds Committee reviews the performance of the fund on a quarterly, year to date and annual basis. Items reported to the Committee include the value of the investments compared with the previous quarter, the balance of cash reserves held throughout the year, the amount of income and expenditure for the quarter and future spending plans. Any potential risks arising from the report are highlighted in the meeting and discussed.

After each meeting of the Charitable Funds Committee, the Chair presents a report to the Board of Directors in order to update it on the most recent work of the Committee providing assurances and escalating matters for further discussion as necessary.

The most significant risk to the Charity is possible losses from a fall in the value of the investments it holds and the level of reserves available to mitigate the impact of such losses. This has been carefully considered and there are procedures in place to review the Investment Policy, ensuring that investment risks are kept to an acceptably low level and to ensure that both spending and firm financial commitments remain in line with income.

1.3 Wider networks and related parties

Herefordshire and Worcestershire Health and Care NHS Trust is a related party by virtue of being the Corporate Trustee of the Charity.

The Charity works closely with the Trust as nearly all of the expenditure is to provide services and facilities to the Trust’s service users, carers, visitors and members of staff.

By working in partnership, the charitable funds are used to best effect for the benefit of service users, carers, visitors and staff. When deciding upon the most beneficial way to use charitable funds, the Corporate Trustee has regard to both the objectives of the Charity and also the activities, objectives, strategies and plans of the Trust.

7 | Herefordshire and Worcestershire Health & Care NHS Trust Charitable Funds Annual Report and Accounts 2023/24 Registration number: 1060335

2. Goal, objectives and activities

2.1 Goal

The Charity’s goal is to help the service users, their families and carers, and visitors to the NHS Trust, by enhancing the care the NHS Trust can offer through new equipment, research and investment in people and by creating a caring environment for the service users receiving care, along with their families and visitors. During the year, the funds continued to support a wide range of charitable and health related activities benefiting service users, carers, visitors and staff.

2.2 Objectives

The Charitable Trust’s governing document, the Declaration of Trust, incorporates the object or purpose of the Charity which is that:

“The trustee shall hold the trust fund upon trust to apply income, and at their discretion, so far as may be permissible, the capital, for any charitable purpose or purposes relating to the National Health Service (hereinafter referred to as “the objects”)”

The Trustee has made the following statement in order to focus on the objectives: “Through donations received we will further improve the provision of high quality patient care throughout the Trust, focussing on areas not covered or fully supported by central NHS funds”.

The Charity has referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing our aim and objectives and in planning our future activities.

2.3 Activities

The focus of our charitable work is for public benefit and to advance patient care, firstly by funding therapies, equipment and facilities and secondly through supporting service users, their carers, visitors and NHS staff. During the year, the charitable funds continued to support a wide range of health related activities benefiting service users, their carers and the staff who care for them. In general, the Trustee’s approach is to use charitable funds to purchase additional goods and services which enhance the service users’ experience and environment.

In addition to funds intended to meet the needs of patients directly, our charitable funds often receive donations specifically to thank the nursing staff who care for the service users. These funds, by helping the staff either by way of training or morale boosting facilities and amenities, strengthen the NHS Trust’s staff capacity to serve their patients and their visitors well. The charitable funds also enable consultants and other medical staff to attend courses not funded by the NHS, which will update them on new ideas and modern techniques in their specialties.

During the year 2024/25, the Charitable Funds Committee will carry out its annual review of fund balances and the overall future objectives and direction of the Charity.

8 | Herefordshire and Worcestershire Health & Care NHS Trust Charitable Funds Annual Report and Accounts 2023/24 Registration number: 1060335

3. Grant making policy.

Applications may be made for items which the NHS would not normally fund and if they can be classified as charitable activities. The Charity makes grants from both its unrestricted and restricted funds.

9 | Herefordshire and Worcestershire Health & Care NHS Trust Charitable Funds Annual Report and Accounts 2023/24 Registration number: 1060335

4. Financial performance

The net assets of the Charitable Funds as at 31 March 2024 were £1,120,314 (31 March 2022 were £1,343,579). Overall net assets have reduced by £223,265 which includes a reduction of £199,908 on investment assets. These assets have reduced in-year due to the funding to several significant one-off projects as set out in note 4.2. The charity remains fully sustainable as it has no long-term commitments and can scale spend in line with income availability.

The Charity continues to rely on donations, legacies and investment income as the main sources of revenue, amounting to £91,782 in 2022/23 (£103,966 - 2022/23).

The following pie chart shows the split between the main sources of income.

4.1 Incoming resources

10 | Herefordshire and Worcestershire Health & Care NHS Trust Charitable Funds Annual Report and Accounts 2023/24 Registration number: 1060335

4.2 Resources expended

During the year a variety of grant based expenditure took place; this is summarised below and also shown in the pie chart:

11 | Herefordshire and Worcestershire Health & Care NHS Trust Charitable Funds Annual Report and Accounts 2023/24 Registration number: 1060335

4.3 Reserves

Reserves are calculated as being the Charity’s income funds which are freely available after taking account of restricted funds which have been designated by the donor for specific building or major equipment purchases, research and other projects.

The Trustee intends that restricted and designated funds are spent within a reasonable period of receipt and therefore foresees a need only to maintain reserves sufficient to provide certainty of funding for general grant making. The restricted funds total £307k, whilst unrestricted funds currently stand at £813k.

The Trustee has established a Reserves Policy with the intention of avoiding major fluctuations in the amounts of income available for distribution and for unforeseen contingencies by retaining £50k of cash reserves in excess of known expenditure commitments.

The Trustee continues to review the balances held in restricted and designated funds, in accordance with the provisions of the NHS Acts relating to charitable funds, to determine whether these funds are likely to be committed in the near future and the extent to which there is a continuing need identified for any particular designated fund. All existing funds are reviewed annually to identify activity recorded and to encourage their utilisation.

4.4 Investments

The Charity’s Fixed Assets Investments are managed by Royal Bank of Canada Brewin Dolphin Ltd on a discretionary basis with reference to a formal Statement of Investment Principles.

The performance figures of the portfolio are set out below on a total return basis in comparison against other key indices:

other key indices:
Year ended Year ended
31 March 2024 31 March 2023
Investment Portfolio: 11.12% -5.87%
PIMFA Private Investors Balanced Index: 12.20% -3.23%
FTSE All Share Index: 8.43% 2.92%
FTSE 100 Index: 8.38% 5.39%

The Statement of Investment Principles is reviewed annually as are the investment portfolio objectives and attitude to risk.

The breakdown of the investment portfolio by type was:

Portfolio
Fixed Interest
Property Investments
Structured Products
UK Equities
Overseas Equity Funds
Absolute Return Fund
Other alternatives
Portfolio Total		 Value (£)
(%)
163,371
16.51%
26,959
2.72%
28,947
2.92%
161,121
16.28%
526,337
53.17%
29,006
2.93%
54,165
5.47%
~~£989,906~~
~~100.0%~~
31 March 2024		 Value (£)
(%)
£182,972
15.38%
£36,614
3.08%
£14,499
1.22%
£221,873
18.65%
£605,311
50.87%
£42,454
3.57%
£86,216
7.25%
~~£1,189,939~~
~~100.0%~~
31 March 2023

12 | Herefordshire and Worcestershire Health & Care NHS Trust Charitable Funds Annual Report and Accounts 2023/24 Registration number: 1060335

The following pie chart shows the split between the main sources of income.

At the year end, the geographical spread of the portfolio was as follows:

Area 2024 2023
UK 21.60% 33.08%
USA 32.72% 29.37%
Japan 3.43% 1.72%
Asia Pacific 5.17% 6.54%
Other European markets 5.80% 5.62%
Emerging Markets 0.99% 0.76%
General global investments 30.29% 22.92%

5. Plans for future periods

The many changes in the NHS, including efficiency reviews, continue to shape the environment in which the Charity operates and the priorities of the Charity are affected by changes in the NHS. The reconfiguration of services and the plans for redesigning patient care to meet the needs of the future will continue to influence the priorities for spending of the charitable funds.

The Trustee does not expect any significant changes in the objectives of the Charity in the forthcoming year.

Thank you

On behalf of the staff and patients who have benefited from improved services and facilities due to donations and legacies, the Corporate Trustee would like to thank all patients and relatives and staff who have made charitable donations. Your donations, no matter how small, make a real difference to the lives to the people who come to us for help.

Approved on behalf of the Corporate Trustee;

Sue Hincks

Chair Charitable Funds Committee Herefordshire and Worcestershire Health and Care NHS Trust Date: 5th November 2024

13 | Herefordshire and Worcestershire Health & Care NHS Trust Charitable Funds Annual Report and Accounts 2023/24 Registration number: 1060335

STATEMENT OF TRUSTEE RESPONSIBILITIES IN RESPECT OF THE TRUSTEE’S REPORT AND THE FINANCIAL STATEMENTS

The trustees are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”.

The law applicable to charities in England and Wales requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that period. In preparing

these financial statements, the trustees are required to:

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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

Signed on behalf of the Trustee:

Sue Hincks

Chair Charitable Funds Committee Herefordshire and Worcestershire Health and Care NHS Trust

Date: 5th November 2024

14 | Herefordshire and Worcestershire Health & Care NHS Trust Charitable Funds Annual Report and Accounts 2023/24 Registration number: 1060335

Charitable Funds case study

Meadow Green, the newly named garden at Meadow Ward in Bromsgrove has undergone a complete transformation to create a specialist therapy and sensory garden for patients in their care. The work included extensive groundwork and landscaping, making way for the new garden buildings including a corner shop and potting shed; designed to recreate familiar everyday environments for patients.

The building interiors are fully customisable and can be transformed with artwork and props to replicate a village shop, a hairdresser and a pub. The layout, materials and functionality of the garden have been carefully designed with people with dementia in mind.

Robert Mackie, Chief Executive at the Trust said, “We’re incredibly proud to unveil Meadow Green following its transformation into a multi-purpose sensory garden.

“The project, which was initiated by staff on the ward, sought to create a safe space to engage patients in everyday activities they might experience outside of a ward environment”. Clare McFadyen, Occupational Therapist on the ward said, “We are delighted to have this therapy environment for our patients.

“The multisensory, multifunctional space enables our patients to engage in a range of meaningful, purposeful activities of daily living that research evidence tells us are important for health and wellbeing.

“Assessments and observations are already highlighting the positive impact ‘Meadow Green’ is having on patient health and wellbeing”.

15 | Herefordshire and Worcestershire Health & Care NHS Trust Charitable Funds Annual Report and Accounts 2023/24 Registration number: 1060335

Independent examiner’s report to the corporate trustee of NHS Worcestershire Health and Care NHS Trust Charitable Funds

16 | Herefordshire and Worcestershire Health & Care NHS Trust Charitable Funds Annual Report and Accounts 2023/24 Registration number: 1060335

Statement of Financial Activities for the year ended 31 March 2024

2023/24
2023/24
2023/24
2022/23
Note
Total
Total
Total
Total
unrestricted
Funds
restricted
Funds
funds
Funds
£’000
£’000
£’000
£’000
Income from:
Donations and legacies
4
24
34
58
64
Investments
5
36
0
36
40
Total income
60
34
94
104
Expenditure on:
Raising funds
6
(52)
(1)
(53)
(57)
Charitable activities:
7
- Patient welfare
(157)
(57)
(214)
(51)
- Staff education and welfare
(71)
(61)
(132)
(70)
Total expenditure
(280)
(119)
(399)
(178)
Net gains/(losses) on invest-
ments
12
81
0
81
(119)
Net expenditure
(139)
(85)
(224)
(193)
Transfers between funds
0
0
0
0
Net movement in funds
~~(139)~~
~~(85)~~
~~(224)~~
~~(193)~~
Reconciliation of funds
Total funds brought forward
952
392
1,344
1,537
Total funds carried forward
813
307
1,120
1,344		 2023/24
2023/24
2023/24
2022/23
Note
Total
Total
Total
Total
unrestricted
Funds
restricted
Funds
funds
Funds
£’000
£’000
£’000
£’000
Income from:
Donations and legacies
4
24
34
58
64
Investments
5
36
0
36
40
Total income
60
34
94
104
Expenditure on:
Raising funds
6
(52)
(1)
(53)
(57)
Charitable activities:
7
- Patient welfare
(157)
(57)
(214)
(51)
- Staff education and welfare
(71)
(61)
(132)
(70)
Total expenditure
(280)
(119)
(399)
(178)
Net gains/(losses) on invest-
ments
12
81
0
81
(119)
Net expenditure
(139)
(85)
(224)
(193)
Transfers between funds
0
0
0
0
Net movement in funds
~~(139)~~
~~(85)~~
~~(224)~~
~~(193)~~
Reconciliation of funds
Total funds brought forward
952
392
1,344
1,537
Total funds carried forward
813
307
1,120
1,344		 2023/24
2023/24
2023/24
2022/23
Note
Total
Total
Total
Total
unrestricted
Funds
restricted
Funds
funds
Funds
£’000
£’000
£’000
£’000
Income from:
Donations and legacies
4
24
34
58
64
Investments
5
36
0
36
40
Total income
60
34
94
104
Expenditure on:
Raising funds
6
(52)
(1)
(53)
(57)
Charitable activities:
7
- Patient welfare
(157)
(57)
(214)
(51)
- Staff education and welfare
(71)
(61)
(132)
(70)
Total expenditure
(280)
(119)
(399)
(178)
Net gains/(losses) on invest-
ments
12
81
0
81
(119)
Net expenditure
(139)
(85)
(224)
(193)
Transfers between funds
0
0
0
0
Net movement in funds
~~(139)~~
~~(85)~~
~~(224)~~
~~(193)~~
Reconciliation of funds
Total funds brought forward
952
392
1,344
1,537
Total funds carried forward
813
307
1,120
1,344

(193)
0
~~(193)~~

1,537
1,344

The notes on pages 20 to 30 form part of these accounts.

17 | Herefordshire and Worcestershire Health & Care NHS Trust Charitable Funds Annual Report and Accounts 2023/24 Registration number: 1060335

Balance Sheet as at 31 March 2024

Total un- Total Total Total
restricted restricted funds funds
funds funds
Note 31 March 31 March 31 March 31 March
2024 2024 2024 2023
£’000 £’000 £’000 £’000
Fixed Assets:
Investments 12 760 230 990 1,190
Total fixed assets ~~760~~ ~~230~~ ~~990~~ ~~1,190~~
Current assets:
Debtors 13 4 0 4 4
Cash at bank and in hand 14 55 77 132 160
Total current assets ~~59~~ ~~77~~ ~~136~~ ~~164~~
Liabilities:
Creditors: Amounts falling due 15 (6) (0) (6) (10)
within one year
Net current assets 53 77 130 154
Total net assets ~~813~~ ~~307~~ ~~1,120~~ ~~1,344~~
The funds of the charity 16
Restricted income funds 0 307 307 392
Unrestricted funds 813 0 813 952
Total funds ~~813~~ ~~307~~
~~1,120~~
~~1,344~~
~~a~~

The notes at pages 20 to 30 form part of these accounts.

Sue Hincks

Chair Charitable Funds Committee Herefordshire and Worcestershire Health and Care NHS Trust

Date: 5th November 2024

18 | Herefordshire and Worcestershire Health & Care NHS Trust Charitable Funds Annual Report and Accounts 2023/24 Registration number: 1060335

Statement of Cash Flows for the year ending 31 March 2024

**2023/24 ** 2022/23
Note Total Total
funds Funds
£’000 £’000
Cash flows from operating activities:
Net cash used in operating activities: 17 (343) (100)
Cash flows from investing activities:
Dividends, interest and rents from investments 5 34 40
Proceeds from the sale of investments 12 639 276
Purchase of investments 12 (358) (210)
Net cash provided by (used in) investing activities 315 181
Change in cash and cash equivalents in the reporting (28) (81)
Cash and cash equivalents at the beginning of the reporting 160 79
period
Cash and cash equivalents at the end of the reporting period 14 132 160

19 | Herefordshire and Worcestershire Health & Care NHS Trust Charitable Funds Annual Report and Accounts 2023/24 Registration number: 1060335

1. Accounting policies

(a) Basis of preparation

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

The accounts (financial statements) have been prepared in accordance with the Statement of Recommended Practice:

(b) Funds structure

Where there is a legal restriction on the purpose to which a fund may be put, the fund is classified either as:

Endowment funds, where the capital is held to generate income for charitable purposes, are subanalysed between those where the Trustee has the discretion to spend the capital, expendable endowment, and those where there is no discretion to expend the capital, permanent endowment. The Charity has no permanent endowment funds and no expendable endowment funds.

Those funds which are neither endowment nor restricted income funds, are unrestricted income funds which are sub analysed between designated (earmarked) funds where the Trustee has set aside amounts to be used for specific purposes, often reflecting the wishes of donors and unrestricted funds which are at the Trustee’s discretion, including the general fund. The major funds held in each of these categories are disclosed in note 16.

(c) Incoming resources

All incoming resources are included in the Statement of Financial Activities once the Charity has entitlement to the resources, it is probable that the resources will be received and the monetary value of incoming resources can be measured with sufficient reliability.

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

Distribution of Investment Income to individual Charitable Funds is made quarterly, based on the number of shares each individual fund has within the investment portfolio.

20 | Herefordshire and Worcestershire Health & Care NHS Trust Charitable Funds Annual Report and Accounts 2023/24 Registration number: 1060335

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

Receipt is probable when:

• All conditions attached to the legacy have been fulfilled or are within the charity’s control. If there is uncertainty as to the amount of the legacy and it cannot be reliably estimated then the legacy is shown as a contingent asset until all of the conditions for income recognition are met.

(e) 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.

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

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

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

A constructive obligation arises when:

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

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

(g) Allocation of support costs

Support costs are those costs which do not relate directly to a single activity. These include some staff costs, costs of administration, internal and independent examiner costs and IT support. Support costs have been apportioned between fundraising costs and charitable activities on an appropriate basis. The analysis of support costs and the bases of apportionment applied are shown in note 9. (h) Costs of raising funds

21 | Herefordshire and Worcestershire Health & Care NHS Trust Charitable Funds Annual Report and Accounts 2023/24 Registration number: 1060335

(h) Costs of raising funds

The costs of raising funds includes all expenditure associated with generating incoming resources from all sources other than from undertaking charitable activities. This includes costs of fundraising, trading and associated costs and costs of managing investments as shown in note 6.

(i) Charitable activities

Costs of charitable activities comprise all costs incurred in the pursuit of the charitable objects of the charity. These costs, where not wholly attributable, are apportioned between the categories of charitable expenditure in addition to the direct costs. The total costs of each category of charitable expenditure include an apportionment of support costs as shown in note 7.

(j) Fixed asset investments

Investments are a form of basic financial instrument. Fixed asset investments are initially recognised at their transaction value and are subsequently measured at their fair value (market value) as at the balance sheet date. The Statement of Financial Activities includes the net gains and losses arising on revaluation and disposals throughout the year. Quoted stocks and shares are included in the Balance Sheet at the current market value quoted by the investment analyst, excluding dividend. Other investments are included at the Trustee’s best estimate of market value.

The main form of financial risk faced by the charity is that of volatility in equity markets and investment markets due to wider economic conditions, the attitude of investors to investment risk, and changes in sentiment concerning equities and within particular sectors or sub sectors. Further information on the Charity’s investments can be found in note 12.

(k) Debtors

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

(l) Cash and cash equivalents

Cash at bank and in hand is held to meet the day to day running costs of the charity as they fall due. Cash equivalents are short term, highly liquid investments, usually in notice interest bearing savings accounts.

(m) 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.

The Charity does not owe any amounts due over one year.

(n) 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 opening carrying value (purchase date if later). Unrealised gains and losses are calculated as the difference between the market value at the year end and the opening carrying value (or purchase date if later).

(o) Pensions

The Charity does not employ any staff and therefore does not have a pension liability.

(p) Critical judgements in applying accounting policies

There were no critical judgements in the application of the accounting policies within these financial statements.

(q) Sources of estimation uncertainty

There were no sources of estimation uncertainty within the preparation of these financial statements.

22 | Herefordshire and Worcestershire Health & Care NHS Trust Charitable Funds Annual Report and Accounts 2023/24 Registration number: 1060335

2. Prior year comparatives by type of fund

The primary statements provide prior year comparatives in total; this note provides prior period comparatives for the Statement of Financial Activities and the Balance Sheet for both types of fund that the Charity manages.

2023/24
2022/23
£’000
£’000
Income
Donations and legacies
24
64
Investments
36
40
Total income
~~60~~
~~104~~
Expenditure
Raising funds
(52)
(50)
Charitable activities
(228)
(113)
Total expenditure
~~(280)~~
~~(163)~~
Net gains/(losses) on investments
81
(119)
Net expenditure
(139)
(178)
Transfer between funds
0
0
Net movement in funds
~~(139)~~
~~(178)~~
Reconciliation of funds
Total funds brought forward
952
1,130
Total funds carried forward
813
952
Unrestricted funds – Balance Sheet as at 31 March 2024
2a. Unrestricted funds – Statement of Financial Activity for the year ended 31 March 2024
2023/24
2022/23
£’000
£’000
Fixed Assets
Investments
760
825
Total fixed assets
~~760~~
~~825~~
Current assets
Debtors
4
4
Cash at bank and in hand
55
130
Total current assets
~~59~~
~~134~~
Liabilities
Creditors: Amounts falling due within one year
(6)
(7)
Net current assets
53
127
l

 2023/24
2022/23
£’000
£’000
Income
Donations and legacies
24
64
Investments
36
40
Total income
~~60~~
~~104~~
Expenditure
Raising funds
(52)
(50)
Charitable activities
(228)
(113)
Total expenditure
~~(280)~~
~~(163)~~
Net gains/(losses) on investments
81
(119)
Net expenditure
(139)
(178)
Transfer between funds
0
0
Net movement in funds
~~(139)~~
~~(178)~~
Reconciliation of funds
Total funds brought forward
952
1,130
Total funds carried forward
813
952
Unrestricted funds – Balance Sheet as at 31 March 2024
2a. Unrestricted funds – Statement of Financial Activity for the year ended 31 March 2024
2023/24
2022/23
£’000
£’000
Fixed Assets
Investments
760
825
Total fixed assets
~~760~~
~~825~~
Current assets
Debtors
4
4
Cash at bank and in hand
55
130
Total current assets
~~59~~
~~134~~
Liabilities
Creditors: Amounts falling due within one year
(6)
(7)
Net current assets
53
127
l

 2023/24
2022/23
£’000
£’000
Income
Donations and legacies
24
64
Investments
36
40
Total income
~~60~~
~~104~~
Expenditure
Raising funds
(52)
(50)
Charitable activities
(228)
(113)
Total expenditure
~~(280)~~
~~(163)~~
Net gains/(losses) on investments
81
(119)
Net expenditure
(139)
(178)
Transfer between funds
0
0
Net movement in funds
~~(139)~~
~~(178)~~
Reconciliation of funds
Total funds brought forward
952
1,130
Total funds carried forward
813
952
Unrestricted funds – Balance Sheet as at 31 March 2024
2a. Unrestricted funds – Statement of Financial Activity for the year ended 31 March 2024
2023/24
2022/23
£’000
£’000
Fixed Assets
Investments
760
825
Total fixed assets
~~760~~
~~825~~
Current assets
Debtors
4
4
Cash at bank and in hand
55
130
Total current assets
~~59~~
~~134~~
Liabilities
Creditors: Amounts falling due within one year
(6)
(7)
Net current assets
53
127
l

 2023/24
2022/23
£’000
£’000
Income
Donations and legacies
24
64
Investments
36
40
Total income
~~60~~
~~104~~
Expenditure
Raising funds
(52)
(50)
Charitable activities
(228)
(113)
Total expenditure
~~(280)~~
~~(163)~~
Net gains/(losses) on investments
81
(119)
Net expenditure
(139)
(178)
Transfer between funds
0
0
Net movement in funds
~~(139)~~
~~(178)~~
Reconciliation of funds
Total funds brought forward
952
1,130
Total funds carried forward
813
952
Unrestricted funds – Balance Sheet as at 31 March 2024
2a. Unrestricted funds – Statement of Financial Activity for the year ended 31 March 2024
2023/24
2022/23
£’000
£’000
Fixed Assets
Investments
760
825
Total fixed assets
~~760~~
~~825~~
Current assets
Debtors
4
4
Cash at bank and in hand
55
130
Total current assets
~~59~~
~~134~~
Liabilities
Creditors: Amounts falling due within one year
(6)
(7)
Net current assets
53
127
l
Tota net assets
 ~~813~~
 ~~952~~
~~952~~
~~Total unrestricted funds~~ ~~813~~

23 | Herefordshire and Worcestershire Health & Care NHS Trust Charitable Funds Annual Report and Accounts 2023/24 Registration number: 1060335

2b. Restricted funds – Statement of Financial Activity for the year ended 31 March 2024

2023/24 2022/23
£’000 £’000
Income
Donations and legacies 34 0
Investments 0 0
Total income ~~34~~ ~~0~~
Expenditure
Raising funds (1) (7)
Charitable activities (118) (8)
Total expenditure ~~(119)~~ ~~(15)~~
Net gains/(losses) on investments 0 0
Net expenditure (85) (15)
Transfer between funds 0 0
Net movement in funds ~~(85)~~ ~~(15)~~
Reconciliation of funds
Total funds brought forward 392 407
Total funds carried forward ~~307~~ ~~392~~
Restricted funds – Balance Sheet as at 31 March 2024
2023/24 2022/23
£’000 £’000
Fixed Assets
Investments 230 365
Total fixed assets ~~230~~ ~~365~~
Current assets
Debtors 0 0
Cash at bank and in hand 77 30
Total current assets ~~77~~ ~~30~~
Liabilities
Creditors: Amounts falling due within one year 0 (3)
Net current assets 77 27
Total net assets ~~307~~ ~~392~~
Total unrestricted funds ~~307~~ ~~392~~

24 | Herefordshire and Worcestershire Health & Care NHS Trust Charitable Funds Annual Report and Accounts 2023/24 Registration number: 1060335

3. Related party transactions

Herefordshire and Worcestershire Health and Care NHS Trust is the sole Corporate Trustee and beneficiary of the Charity. The charity has made revenue and capital grant payments to the Trust for the benefit of NHS patients and these are detailed in note 7.

During the year none of the members of the NHS Trust Board or parties related to them has undertaken any transactions with the Charity or received any benefit from the Charity in payment or kind. The Trustee received no honoraria, expenses or emoluments in the year.

The Trust makes a number of clerical and transaction services available to the charity, by agreement with the Trustee. These include administrative services at a cost of £34,288 (£39,155 in 2022/23) in support of the charity’s grant making activities which are included within support costs - see note 9. The amounts paid for administrative services are due under a service level agreement and are set at an amount which allows the Trust to recover its costs.

4. Income from donations and legacies

Unrestricted Restricted Total Total
funds funds 2023/24 2022/23
£’000 £’000 £’000 £’000
Donations from individuals 24 0 24 28
Funds from other NHS Charities 0 34 34 0
Legacies 0 0 0 36
Total ~~24~~ ~~34~~ ~~58~~ ~~64~~

Legacy income is only included in incoming resources where receipt is probable and the amount is known with certainty, or the legacy has been received.

5. Gross income from investments

Unrestricted Restricted Total Total
funds funds 2023/24 2022/23
£’000 £’000 £’000 £’000
Investments listed on UK
Stock Exchange ~~36~~ ~~0~~ ~~36~~ ~~40~~
Total ~~36~~ ~~0~~ ~~36~~ ~~40~~

6. Analysis of expenditure on raising funds

Unrestricted Restricted Total Total
funds funds 2023/24 2022/23
£’000 £’000 £’000 £’000
Investment management cost 8 0 8 9
Support costs 44 1 45 48
Total 52 1 53 57

25 | Herefordshire and Worcestershire Health & Care NHS Trust Charitable Funds Annual Report and Accounts 2023/24 Registration number: 1060335

7. Analysis of charitable activities

The charity did not undertake any direct charitable activities on its own account during the year. All of the charitable expenditure was in the form of grant funding.

Total Total
2023/24 2022/23
£’000 £’000
Patient welfare 214 51
Staff education and welfare 132 70
~~346~~ ~~121~~

8. Analysis of grants

The charity does not make grants to individuals. All grants are made to the Trust to provide for the care of NHS patients in furtherance of our charitable aims. The grant support was given to Herefordshire and Worcestershire Health and Care NHS Trust. 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 Corporate Trustee operates a scheme of delegation for all of the charitable funds, through which all grant funded activity is managed by fund advisers responsible for the day to day disbursements on their projects, in accordance with the directions set out by the Trustee’s charity standing orders and financial instructions.

9. Allocation of support costs

Support costs have been allocated between raising funds and charitable activities on the basis of direct allocation.

on.
Raising Charitable Total Total
funds activities 2023/24 2022/23
£’000 £’000 £’000 £’000
Independent examiner 6 0 6 6
Internal audit ~~1~~ ~~0~~ ~~1~~ ~~1~~
Governance 7 0 7 7
Administration costs 37 1 38 40
Miscellaneous 0 0 0 1
Total ~~44~~ ~~1~~ ~~45~~ ~~48~~

10. Analysis of administration costs

The Charity does not employ any staff, but the Charity was charged £34,288 (2022/23 £39,155) by Herefordshire and Worcestershire Health and Care NHS Trust. This represented the recovery of the costs of relevant NHS Trust employees who administered the charitable funds during the year.

26 | Herefordshire and Worcestershire Health & Care NHS Trust Charitable Funds Annual Report and Accounts 2023/24 Registration number: 1060335

11. Independent Examiner

The independent examiner’s fee for 2023/24 was £6,264 (2022/23 £6,192). This fee relates solely to examination, with no other additional work undertaken.

12. Fixed asset investments

Movement in fixed asset investments
Market value bought forward
Add: additions to investments at cost
Less: disposals at carrying value
Add: net gain / (loss) on revaluation
Market value at year end
Fixed asset investments by type
Fixed interest
Property investments
Structured products
UK equities
Overseas equity funds
Absolute return funds
Other investments
Total		 2024
£’000
164
27
29
161
526
29
~~54~~
~~990~~		 2024
%
16.5
2.7
2.9
16.3
53.2
2.9
~~5.5~~
~~100.0~~		 2024
Total
£’000
1,190
358
(639)
81
~~990~~
2023
£’000
183
37
14
222
605
42
~~86~~
~~1,190~~		 2023
Total
£’000
1,450
135
(276)
(119)

~~1,190~~

2023
%
15.4
3.1
1.2
18.6
50.9
3.6
~~7.2~~
~~100.0~~

27 | Herefordshire and Worcestershire Health & Care NHS Trust Charitable Funds Annual Report and Accounts 2023/24 Registration number: 1060335

All investments are carried at their fair value.

The Trustee set 5% of market value as of 31 March as the threshold for reporting material investments. As of 31 March 2024, the following investments were considered material: Vanguard Funds PLC S&P500 UCITS ETF USD DIS (9.35% of portfolio).

The significance of financial instruments to the ongoing financial sustainability of the Charity is considered in the risk analysis section of the Trustee’s annual report.

The main risk from financial instruments lies in the combination of uncertain investment markets and volatility in yield. Owing to ‘quantitative easing’ and the market favouring lower risk investments, the yield on bonds has been low giving rise to a significant downside risk of a fall in capital values if interest rates return to normal levels.

Although the stronger economy should result in improving dividend yields, there is concern that the market conditions will change and this may not be the case.

The default rate on fixed interest securities is expected to improve with a strengthening economy. The high current demand for high quality corporate bond and government stock continues to depress the yield.

Liquidity risk is anticipated to be low as all assets are traded and the commitment to intervention by central banks and market regulators has continued to provide for orderly trading in the markets and so the ability to buy and sell quoted equities and stock is anticipated to continue. The Charity’s investments are mainly traded in markets with good liquidity and high trading volumes. The Charity has no material investment holdings in markets subject to exchange controls or trading restrictions.

The Charity manages these investment risks by retaining expert advisors and operating an investment policy that provides for a high degree of diversification of holdings within investment asset classes. All investments were made in companies listed on a UK stock exchange or incorporated in the UK or European Union and therefore all investments are treated as investment assets in the UK/EU. Restricted appeals to fund specific equipment or assets are held on notice deposit or overnight on the money markets in accordance with the Trustee’s investment policy.

The Charity does not make use of derivatives and similar complex financial instruments as it takes the view that investments are held for their longer term yield total return and historic studies of quoted financial instruments have shown that volatility in any particular 5 year period will normally be corrected.

28 | Herefordshire and Worcestershire Health & Care NHS Trust Charitable Funds Annual Report and Accounts 2023/24 Registration number: 1060335

13. Analysis of current debtors

13. Analysis of current debtors
Debtors under 1 year 2024 2023
£’000 £’000
Debtors 1 1
Prepayments 3 3
Total ~~4~~ ~~4~~

14. Analysis of Cash at bank and in hand

2024 2023
£’000 £’000
Cash in hand 120 110
Short term investments 12 50
Total ~~132~~ ~~160~~

All cash is held in a current account. No cash or cash equivalents or current asset investments were held in non-cash investments or outside of the UK.

15. Analysis of Liabilities

Creditors under 1 year 2024 2023
£’000 £’000
Accruals 6 10
Total ~~6~~ ~~10~~

29 | Herefordshire and Worcestershire Health & Care NHS Trust Charitable Funds Annual Report and Accounts 2023/24 Registration number: 1060335

16. Analysis of fund movements charitable funds

The Trustee sets a closing balance of £50,000 or above as the threshold for the separate reporting of material funds. In the interests of accountability and transparency a complete breakdown of all funds is available upon written request.

Fund
Restrcited Funds:
Malvern Hospital
Other restricted funds
Unrestricted funds:
General Trust-Wide
Other unrestricted funds
Unrestricted Service funds:
Mental Health & Learning
Disabilities
Integrated Community
Care
Countywide Community
Care
Children’s and Specialist		 B/fwd
In-
come
Expenditure
Gains
and
losses
Fund
Trf
316
0
(78)
0
0
77
34
(41)
0
0
402
0
(118)
0
0
0
60
(61)
81
(80)
136
0
(41)
0
37
140
0
(9)
0
2
136
0
(14)
0
9
137
0
(37)
0
32
~~1,344~~
~~94~~
~~(399)~~
~~81~~
~~0~~		 Fund
C/fwd
238
70
284
0
132
133
131
132
~~1,120~~
17. Reconciliation of net income/(expenditure) to net cash fow from 17. Reconciliation of net income/(expenditure) to net cash fow from 17. Reconciliation of net income/(expenditure) to net cash fow from
operating activities 2023/24 2022/23
£’000 £’000
Net income/(expenditure)
(as per the Statement of Financial Activities) (224) (193)
Adjustments for:
(Gains)/losses on investments (81) 119
Dividends, interest and rents from investments (34) (40)
(Increase)/decrease in debtors 0 6
Increase/(decrease) in creditors (4) 8
Net cash provided by (used in) operating activities (343) (100)

30 | Herefordshire and Worcestershire Health & Care NHS Trust Charitable Funds Annual Report and Accounts 2023/24 Registration number: 1060335

Compliment, complaint or feedback about your care?

Email: whcnhs.pals@nhs.net Phone: 01905 681517 (Mon-Fri 8:30am - 4:00pm) Web: www.hacw.nhs.uk

Write: PALS, Herefordshire and Worcestershire Health and Care NHS Trust, Kings Court 2, Charles Hastings Way, Worcester, Worcestershire WR5 1JR

This information can be made available in alternative formats such as easy read or large print, and may be available in alternative languages upon request. Please contact the person who gave you this leaflet so your needs can be recorded and responded to.