## **Homerton University Hospital NHS Foundation Trust Charitable Fund**
## **CHARITY NUMBER 1061659**
## **Annual Report 2020/21**
.
Homerton University Hospital NHS Foundation Trust Charitable Funds Annual Report 2020/21
## **Contents**
|**Contents**||
|---|---|
||Page|
|Reference and Administrative Details|3|
|Structure, Governance and Management|4|
|Public benefit statement|5|
|Strategic Objectives and Activities|6|
|Related Parties|6|
|Reserves Policy, Investment Policy and Risk Management|6|
|Review of Achievements and Performance|8|
|Financial Review|10|
|Future Plans|11|
|Annual Accounts|12|
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Homerton University Hospital NHS Foundation Trust Charitable Funds Annual Report 2020/21
## **Reference and Administrative Details**
## **Main Charity**
Registered Name: Homerton University Hospital NHS Foundation Trust Charitable Fund Registered Number: 1061659 Registration Date: 3[rd] April 1997
## **Subsidiary Funds**
Registered Name: Homerton University Hospital NHS Foundation Trust Childrens’ Services Charity (Subsidiary Fund 2) Registered Number: 1061659-2 Registration Date: 29[th] November 2002
## **Charity Address**
Trust Offices Homerton University Hospital NHS Foundation Trust Homerton Row London E9 6SR Tel: 020-8510-5154
## **Trustee Arrangements**
The Homerton University Hospital NHS Foundation Trust is the Corporate Trustee of the Charity. The Directors who served the Trust during the year end 2020/21 and to date of the report, unless otherwise stated, that were members of the Charitable Fund Committee were:-
Ms Tracey Fletcher – Chief Executive Mr John Gieve – Chairman Phill Wells – Finance Director Deblina Dasgupta – Medical Director
## **Governing Document**
Main Charity - Declaration of Trust dated 19[th] March 1997 Subsidiary Funds 1 and 2 – Declaration of Trust dated 10[th] September 2002
## **Objectives**
For any charitable purpose or purposes relating to the National Health Service provided by Homerton University Hospital NHS Foundation Trust
## **Bankers**
National Westminster Bank Plc, 20, Amhurst Road, Hackney, London, E8 1QZ.
## **Investment Managers**
BlackRock Investment Management (UK) Limited 33, King William Street, London, EC4R 9AS.
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Homerton University Hospital NHS Foundation Trust Charitable Funds Annual Report 2020/21
## **Independent Examiner**
Simpson Wreford LLP Chartered Accountants and Registered Auditors Wellesley House Duke of Wellington Avenue Royal Arsenal London SE18 6SS
## **Structure, Governance and Management**
The main Charity is an NHS Charity as defined within the NHS Charities guidance (1 February 2012) and was created by the Declaration of Trust made on 19[th] March 1997. The Corporate Trustee is the Homerton University Hospital NHS Foundation Trust (the Trust). The Executive Directors and the NonExecutive Directors of the Trust share the responsibility for ensuring that the NHS body fulfils its duties as Corporate Trustee in managing the charitable fund.
The Board of the Trust has delegated the responsibility of managing the charitable fund to the Charitable Funds Committee. The Director of Finance is responsible for the day-to-day management and control of the administration of the charitable fund and chairs the Charitable Funds Committee. The Director of Finance has particular responsibility to ensure that spending is in accordance with the objectives and priorities agreed by the Charitable Funds Committee and the Board; the criteria for spending the charitable funds are fully met; full accounting records are maintained; and that devolved decision-making or delegated arrangements are in accordance with the policies and procedures set out by the Board on behalf of the Corporate Trustee.
The Charitable Funds Committee reviews the performance of the external investment manager and ensures that the investment of funds is in accordance with the Charity’s policy on ethical investment. The Committee approves the appointment and the terms of business of the investment manager and approves items of expenditure above the delegated limits of the fund holders.
Regular reports are produced on financial activity and fundraising programmes and are presented to the Charitable Funds Committee.
A number of funds are earmarked for certain wards and departments. These are managed on a day-today basis by fund holders within the directorate they relate to. The fund holders are required to adhere to the Standing Financial Instructions, Standing Orders and Delegated Limits set by the Corporate Trustee. The Charitable Funds Committee Members oversee the work of these fund holders and have the power to withdraw a fund holder’s delegated authority and to direct the use to which funds are put (subject to any specific donor restrictions).
The Trust recognises that a well governed Charitable Funds Committee is essential if the Charity is to be effective in achieving its objectives. The Committee must seek to be representative of the people with whom the Charity works and must have available to it all of the knowledge and skills required to run the Charity.
Individual Committee Members must have sufficient knowledge, both of trusteeship in general and of the Charity's activities, to enable them to carry out their role and to represent the Charity at meetings and other events. Any new appointee is required to have these skills.
The Trust seeks to have at least four Members on its Charitable Funds Committee.
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Homerton University Hospital NHS Foundation Trust Charitable Funds Annual Report 2020/21
Where a vacancy exists or a Committee Member departs, the new person will be given a copy of the Trust’s Committee Member Induction Pack on appointment which includes the Charitable Fund Committee Terms of Reference, the previous year’s Annual Accounts and Annual Report, the Charity Commission’s publication, ‘Guidance on the role of a Corporate Trustee’, and a list of funds, fund holders and balances held.
## **Grant making policy** :
In order for the Charitable Funds Committee Members to retain overall management control of the funds, they have established a financial scheme of delegation which sets expenditure authorisation limits as follows: -
For all expenditure the following rules apply:
- Purchases up to £1,000
- Individual fundholder can authorise
- Purchases between £1,000 and £9,999
- Two Committee Members to authorise
- Purchases of £10,000 and over
- To be authorised at a Charitable Funds Committee meeting
## **Designated funds policy:**
Designated funds are set up at the charitable trustees’ discretion when a request has been made to the trustees. The trustees will ensure the continuity of the income/ expenditure streams and the charitable benefits to the hospital before deciding on setting up new designated funds.
## **Restricted funds policy:**
Restricted funds are set up when there is either a donation or a grant is received with specific written restrictions on how the funds to be used.
## **Public benefit statement**
The Trustees confirm that they have complied with public benefit guidance published by the Charity Commission.
Our Charity’s objective is to provide support for any charitable purpose or purposes relating to the National Health Services provided by Homerton University Hospital NHS Foundation Trust including services provided to the community. The Trustees ensure that this purpose is carried out for the public benefit by working to the strategic objectives.
Our charitable organisation is set up to benefit patients and their families and the staff of Homerton Hospital. Our grants are structured to ensure that the money raised is used to best effect to support the hospital’s work and is in line with donor’s wishes and the charity’s mission and objectives.
The Charity does not provide facilities directly to the public but provides them to the hospital, in so doing, for the patients of the hospital.
Grants made to the hospital do not focus on the income of patients, but provide a benefit to any patient requiring the services of the hospital, which are available to all entitled to NHS treatment based on need.
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Homerton University Hospital NHS Foundation Trust Charitable Funds Annual Report 2020/21
## **Strategic Objectives and Activities**
The main objective of the charitable fund is to ensure that the funds are used: “For any charitable purpose or purposes relating to the National Health Services provided by Homerton University Hospital NHS Foundation Trust”.
The Charity is funded by donations and legacies received from patients, their relatives, and the general public and other organisations. In order to meet our overall objective we ensure all spend pertains to one of the following three areas:
**Patient Expenditure** – Purchase of items of equipment, provision of services, and the provision of facilities not normally provided by, or in addition to, the normal NHS provision;
**Staff Expenditure –** Purchase of educational material and conference/course fees in addition to those provided from the Trust’s training and development budgets. Enhanced staff facilities and services that improve staff wellbeing; and
**Capital Equipment -** Purchase of equipment in addition to that provided by NHS funds through the Trust’s Capital Programme.
The activities carried out during 2020/21 to meet the strategic objectives are summarised on pages 7 to 9 of this report.
## **Related Parties**
Homerton University Hospital NHS Foundation Trust is the Charity’s only related party. The Charity works closely with Homerton University Hospital NHS Foundation Trust and individuals within the Trust.
Staff within the Trust identify and advise the Charitable Funds Committee on local priorities and assist the Committee Members in monitoring the use of charitable funds.
The corporate trustee is a member of the Healthcare Financial Management Association and receives updates and bulletins on matters affecting NHS charitable funds from the HFMA Charitable Funds Special Interest Group.
## **Reserves Policy, Investment Policy and Risk Management**
## **Reserves Policy**
The Charitable Funds Committee reviewed the Reserves Policy during 2019/20. The review was based on best practice guidance from the Charities Commission on reserves as well as reviewing other reserves policies from similar NHS organisations. The Reserves Policy is set out below:
The minimum reserves level that the Charity should hold is £119k. This is the anticipated expenditure for the following six months arrived using prior year total expenditure.
During the 2020/21 financial year, the Charity has adhered to the Reserves Policy as set out above.
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Homerton University Hospital NHS Foundation Trust Charitable Funds Annual Report 2020/21
## **Investment Policy**
The Charitable Funds Committee reviewed the Investment Policy for Trust Funds during the year 2019/20. The aim of the policy is to optimise the investment income received whilst maintaining the capital value of the funds and ensure:
-
- There is a balanced portfolio;
- The investment style is conservative;
- We refrain from direct investment in tobacco related companies;
- There is no direct investment exposure through overseas shares; and
-
- A sufficient cash balance will be held to meet the fund’s ongoing working capital requirements.
To ensure that appropriate advice and guidance is received:
- The Charitable Funds Committee has the delegated authority to appoint fund managers; and
- - Fund managers are required to submit performance reports and attend meetings where appropriate, to advice on investment performance, trends, opportunities, and highlight areas of concern.
The funds have been managed in accordance with the Investment Policy during 2020/21.
As a part of its regular review of the Charitable Fund’s Investment Strategy, the Committee reviews the Fund’s investments to ensure they remain focused primarily on cash/short term investments. As at 31[st] March 2021 approximately £537k of funds were held in the BlackRock Charinco Common Investment Fund and the Charishare Restricted Common Investment Fund.
## **Risk Management**
The Charitable Funds Committee reviews its risk register on an ongoing basis. When risks are identified, systems and procedures are put in place to manage those risks.
The following risks were identified as possible risks faced by Homerton charity:
- Poor investment performance – financial loss due to poor market conditions on investments.
- Cash flow difficulties as a result of lack of fundraising activities.
- Fraudulent activity – fraudulent payments from charity bank account.
- Security of Art Assets – Theft or damage of various items of art around the hospital.
- Adverse publicity – Damage to charity’s reputation by being associated with certain organizations or individuals.
Action taken to mitigate above risks are:
- Regular investment performance reviews by both finance department and Committee.
- Trustees to review fundraising activities of the charity.
- Regular review of bank account to identify any fraudulent activities.
- Regular inspection of paintings and artwork on site by Art Curator.
- Trustees to review major donations to charity. Set a limit on cash donations and donations are accepted as per the charity user guide.
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Homerton University Hospital NHS Foundation Trust Charitable Funds Annual Report 2020/21
## **Review of Achievements and Performance**
During 2020/21, the charity continued to support a wide range of charitable and health related activities, benefiting patients and staff in a variety of areas. Generally, funds are used to provide specialist staff, goods and services which would not have been possible using NHS funding.
Due to Covid-19 pandemic fundraising throughout the most part of the year was mainly focused on coordinating the increased amount of goodwill donations. Some of the projects that had been planned during financial year had to be halted due to the pandemic.
The outpouring of support for the NHS in the first lockdown was astonishing. We were inundated with various items of donations; below are just some of the gifts & services received during this time. We distributed these immediately to grateful staff and patients.
- Care packages.
- Toiletries.
- Small electronic equipment.
- Various food items and refreshments.
- Hot meals.
- Drinks.
- Ice cream van.
- Plants.
- Toys.
- Bicycle
- Magazines & stationery items.
- Nespresso coffee machine
- Accommodation
- Discounts from local shops
- Restaurant vouchers.
- Online yoga classes.
- Physiotherapy for staff.
- Personal Protective Equipment
- Free travel for staff.
Some of the activities which continued over the past year are described below.
## **Art programme**
The therapeutic value of art in health and in speeding recovery is well documented. The Trust has always displayed art work in its wards, corridors and courtyards. Based in the heart of Hackney, the hospital provides an excellent blank canvas for artists to display their work to patients, staff and visitors.
Charitable funds are used to fund art therapy sessions in the Elderly Care Unit and the Graham Stroke unit. These were in valuable with patient recovery.
Charity continues in looking for further funding to be able to continue our art therapy sessions in the future.
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Homerton University Hospital NHS Foundation Trust Charitable Funds Annual Report 2020/21
## **Staff welfare**
Charity continued to provide many benefits to staff for their wellbeing. Some of these benefits are listed below:
- Wobble rooms for staff to relax and refresh.
- Water bottles.
- Feel Good Trollies for the wards.
- Microwave for Palliative care.
- Garden furniture for HTNRU, Hackney Ark roof garden and MSNH.
- Chairs for SCBU.
- Thank you cards and breakfasts for staff .
Contributions were also made to support the work of the Healthy Homerton Project.
## **Patient welfare**
Over the last year, charitable funds were used to purchase a number of items of equipment and to provide additional services to benefit patients, for example:
- Videos for cancer/palliative care.
- Weights for therapy patients.
- TV and subscription for cancer services.
## **Christmas presents for inpatients**
The charity continued its annual tradition of providing small gifts to patients who were staying in hospital during Christmas 2020.
## **Donations**
Significant donations came from our Go fund me page £17,470, Virgin sport virtual events £3000 and £20527 from Roksanda online Instagram fashion sale. We have also received £6600 from Hackney Scrubhub, £9663 from R&S Records and £7320 from Host of Leyton.
NHS Charities Together raised over £130 million which is being given to NHS Trusts around the country. So far we have received £162,100. This has been used to fund staff breakfast during staff recognition week, furniture for the wobble room for staff use and Black Lives Matter presentation.
We received £51,213 in general donations and £15,342 from Justgiving pages.
As well as monetary donations we were inundated with many gifts from the local community and businesses. We have distributed all these to our grateful staff.
The Trust did not receive any political donations during the year.
## **Future Plans**
We will continue to raise funds to further the Charity’s objectives and to ensure that they are invested to the benefit of patients and our staff.
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Homerton University Hospital NHS Foundation Trust Charitable Funds Annual Report 2020/21
## **Financial Review**
## **Income**
During the year ended 31st March 2021 the Charity received donations of approximately £356k (2019/20 £137k) including £162k from NHS Charities Together Covid-19 appeal designated to provide staff welfare, Just Giving, Virgin Giving and other virtual fundraising platforms have given us about £36k of income. £20k received from Roksanda online Instagram fashion sale as well as gifts in kind with a valuation of £25,759.
The Charity also generated £17k (2019/20 £15k) from investments.
## **Expenditure**
During the year ended 31[st] March 2021 the Fund’s expenditure totalled £206k (2019/20 £135k). The breakdown of expenditure was as follows: charitable activities £206k (2019/20 £134k) and fund raising costs £0k (2019/20 £1k). Expenditure also includes the gifts in kind distributed to staff with a value of £25,759.
Charitable activities included patient welfare expenditure of £100k (2019/20 £73k); staff welfare and training costs of £43k (2019/20 £12k); salaries expenditure of £58k (2019/20 £41k) and statutory audit fees of £5k (2019/20 £5k).
Expenditure on patient welfare included the provisions for Peer Navigator programme for patients with HIV, expenditure on a project with homeless people, art therapy courses for elderly patients, purchase of garden furniture for the benefit of both patients and staff, works on a parents room project for the starlight children ward, purchase of special arm chairs for special care baby unit, patient day out expenditure and weights for patients are some of the expenditure.
Staff training expenditure included sending staff on courses and conferences.
Expenditure on staff welfare included providing free breakfast for staff during the staff recognition week, catering for Schwarts round events, Black Lives Matter presentation, sending Thank you cards to all staff and setting up wobble rooms and associated costs.
## **Other Recognised Gains and Losses**
Investments managed by BlackRock Investment Managers were valued at a market value of £537k at the balance sheet date. The artwork investments were valued at £299k (2019/20 £299k) as at 31 March 2021. Trust’s art work portfolio was formally valued in March 2019 by Bonhams valuers.
## **Reserves**
The charity as a whole made a surplus of £253k during the year. This is largely due to the grants received from NHS Charities Together Covid-19 appeal, increase of individual donations received as a result of Coved-19 pandemic together with increase of market value of funds invested with BlackRock Investment Managers over the year. Investments have increased in value over the year by £86k. This has resulted in the total fund balance increasing from £1,954k to £2,207k.
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Homerton University Hospital NHS Foundation Trust Charitable Funds Annual Report 2020/21
## **Future Plans**
We will continue to raise funds to further the Charity’s objectives and to ensure that they are invested to the benefit of patients and our staff.
We would like to give special thanks to all the local community, businesses, patients, relatives and our staff for their incredible support given to our hospital during the Covid-19 pandemic.
____________________________________
Tracey Fletcher Chief Executive
Homerton University Hospital NHS Foundation Trust and Charitable Fund Committee Member
Date: 16 September 2021
11
Homerton University Hospital NHS Foundation Trust Charitable Fund Charity Number 1061659 Annual Accounts for the Year Ending 31 March 2021
12
Homerton University Hospital NHS Foundation Trust Charitable Fund Annual Accounts 2020/21
## **Statement of Trustees’ responsibilities in respect of the Trustees’ 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 trustees have elected to prepare the financial statements in accordance with UK Accounting Standards, including FRS 102 _The Financial Reporting Standard applicable in the UK and Republic of Ireland._
The financial statements are required by law to give a true and fair view of the state of affairs of the charity and of the excess of expenditure over income for that period.
In preparing these financial statements, generally accepted accounting practice entails that the trustees:
- select suitable accounting policies and then apply them consistently;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards and the Statement of Recommended Practice have been followed, subject to any material departures disclosed and explained in the financial statements;
- state whether the financial statements comply with the trust deed , subject to any material departures disclosed and explained in the financial statements; and
- assess the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern; and
- use the going concern basis of accounting unless they either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.
The trustees are required to act in accordance with the trust deed 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 are responsible for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error, and 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 11 to 25 attached have been compiled from and are in accordance with the financial records maintained by the Trustees.
By order of the Trustees
Trustee………………………………...............…………………..............……Date 9 July 2021
Trustee……………………………………….............................………………Date 16 September 2021
Where the financial statements are published on the internet.
13
## **Homerton University Hospital NHS Foundation Trust Charitable Fund Annual Accounts 2020/21**
## **Independent Examiner's Report to the Trustees of Homerton University Hospital NHS Foundation Trust Charitable Fund**
I report to the trustees on my examination of the accounts of the Homerton University Hospital NHS Foundation Trust Charitable Fund (the Trust) for the year ended 31 March 2021.
## **Responsibilities and basis of report**
As the charity trustees of the Trust, you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’).
I report in respect of my examination of the Trust’s accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.
## **Independent examiner's statement**
I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
1. accounting records were not kept in respect of the Trust as required by section 130 of the Act; or
2. the accounts do not accord with those records; or
3. the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the _Charities (Accounts and Reports) Regulations_ 2008 other than any requirement that the accounts give a ‘true and fair’ view which is not a matter considered as part of an independent examination.
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
## **M Broder FCA**
## **For and on behalf of Simpson Wreford LLP, Chartered Accountants**
Wellesley House Duke of Wellington Avenue Royal Arsenal London SE18 6SS
Dated: 22 September 2020
14
## **Homerton University Hospital NHS Foundation Trust Charitable Fund Annual Accounts 2020/21**
## **Statement of Financial Activities for the period ended 31 March 2021**
|Notes
**INCOME FROM:**
Donations and legacies
3.0
Other trading activities
3.1
Investments
3.2
**TOTAL INCOME**
**EXPENDITURE ON:**
Raising funds
4.0
Charitable activities
4.1
**TOTAL EXPENDITURE**
**Net income/(expenditure) before investment**
**gains/(losses)**
Net gains/(losses) on investments
**Net income/(expenditure) before tax**
Taxation
**Net income/ (expenditure) for the year**
**NET MOVEMENT IN FUNDS**
**Reconciliation of Funds**
Total funds brought forward as previously reported
Net movement in funds for the year
**Total funds carried forward**
11|**2020/21**
Restricted Unrestricted Endowment
**Total**
Funds
Funds
Funds
**Funds**
£000
£000
£000
**£000**
162
194
-
**356**
-
-
**-**
-
17
-
**17**
162
211
-
**373**
-
**-**
(41)
(165)
-
**(206)**
(41)
(165)
-
**(206)**
121
46
-
**167**
-
86
-
**86**
121
132
-
**253**
-
-
-
**-**
121
132
-
**253**
121
132
-
**253**
-
36
986
932
**1,954**
121
132
-
**253**
**157**
**1,118**
**932**
**2,207**|2019/20
Total
Funds
£000
137
5
15
157
(1)
(134)
**(135)**
22
(56)
(34)
-
(34)
(34)
1,988
(34)
1,954|
|---|---|---|
The notes at pages **17 to 24** form part of these Accounts.
15
## **Homerton University Hospital NHS Foundation Trust Charitable Fund Annual Accounts 2020/21**
## **Balance Sheet as at 31 March 2021**
|Notes
**Fixed Assets**
Investments
8
**Current Assets**
Debtors: amounts falling due
9.1
within one year
Debtors: amounts falling due
9.2
over one year
Cash at bank and in hand
**Total Current Assets**
Creditors: amounts falling due
within one year
10
**Net Current Assets**
**Net Assets**
**Funds of the Charity**
Funds revenue / capital
11
**Total Funds**|Restricted Unrestricted Endowment
**Total at 31**
Funds
Funds
Funds **March 2021**
£000
£000
£000
**£000**
-
836
-
**836**
-
836
-
**836**
-
-
31
**31**
-
-
466
**466**
157
311
435
**903**
157
311
932
**1,400**
(29)
-
**(29)**
157
282
932
**1,371**
**157**
**1,118**
**932**
**2,207**
157
1,118
932
**2,207**
**157**
**1,118**
**932**
**2,207**|Total at 31
March 2020
£000
750
750
31
497
709
1,237
(33)
1,204
1,954
1,954
1,954|
|---|---|---|
The notes at pages **17 to 24** form part of these Accounts.
These financial statements of the Homerton NHS FT Charitable Fund registered number 1061659 were approved by the Board of Trustees and authorised for issue on 16 September 2021. These were signed on its behalf by:
Signed:
Tracey Fletcher Chief Executive
Date: 16 September 2021
16
## **Homerton University Hospital NHS Foundation Trust Charitable Fund Annual Accounts 2020/21**
|**Statement of cash flows**
Notes
**Cash flows from operating activities:**
Cash generated by operating activities
19
**Cash flows from investing activities:**
Dividends, interest and rents from investments
Net cash provided by (used in) investing activities
**Cash flows from financing activities:**
Change in cash and cash equivalents in the reporting period
Cash and cash equivalents at the beginning of the reporting period
Cash and cash equivalents at the end of the reporting period
**Analysis of Cash and Cash Equivalents**
Cash in hand
Notice Deposits (less than 3 months)
Total Cash and Cash Equivalents|**Total funds**
Total funds
**£000**
£000
**Mar-21**
Mar-20
**177**
49
**17**
15
**17**
15
**194**
264
**709**
445
**903**
709
**£000**
£000
**Mar-21**
Mar-20
**1**
1
**902**
708
**903**
709|
|---|---|
17
**Homerton University Hospital NHS Foundation Trust Charitable Fund Annual Accounts 2020/21**
**1 ACCOUNTING POLICIES**
**1.1 Basis of accounting**
## **NOTES TO THE ACCOUNTS**
The accounts (financial statements) have been prepared in accordance with the 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 on 16th July 2014 and the Charities Act 2011 and UK Generally Accepted Practice as it applies from 1 January 2015.
## **1.2**
## **Income**
- a) All incoming resources are included in full in the Statement of Financial Activities as soon as the following three factors can be met:
i) entitlement - arises when there is control over the rights or other access to the resource, enabling the charity to determine its future application;
ii) certainty - when there is reasonable certainty that the incoming resource will be received; and
iii) measurement - when the monetary value of the incoming resources can be measured with sufficient reliability.
- b) Gifts in kind include the following:
i) assets given for use by the funds e.g. property for its own occupation are included in the Statement of Financial Activities as incoming resources when receivable; and
ii) gifts made in kind but on trust for conversion into cash and subsequent application of the funds are included in the accounting period in which the gift is sold.
In all cases the amount at which gifts in kind are recognised in these accounts is at the fair value of those gifts at the time of their receipt to the Charitable Fund or the amount actually realised on disposal of the gift. Where gifts in kind are included in the Statement of Financial Activities at fair value, the value is based on the estimated price the charitable fund would have to pay to acquire the asset in the open market. The basis of the valuation is disclosed in the annual report.
During the financial year 20-21, charity has received a significant number of gifts as a result of the Covid-19 pandemic. These were mainly from the local community, businesses, grateful patients and their families. Hot meals, various food items, small electrical equipment, toiletries, services, discounts for staff are some of the gifts in kind received. All these gifts were immediately distributed amongst the hospital staff.
- c) Legacies
Legacies are accounted for as incoming resources once the receipt of the legacy becomes probable. This will be once confirmation has been received from the representatives of the estates that payment of the legacy will be made or property transferred and once all conditions attached to the legacy have been fulfilled.
18
## **Homerton University Hospital NHS Foundation Trust Charitable Fund Annual Accounts 2020/21**
## **1.3 Expenditure**
Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:
Raising funds:
Expenditure on raising funds includes the costs incurred in generating fundraising income.
## Charitable activities:
Expenditure on charitable activities include: patient welfare and amenities, staff welfare and amenities, charity support costs.
Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Support costs include back office costs, finance, personal, payroll and governance costs which support the charity. These are analysed within note 4.1 under analysis of expenditure.
## **1.4 Structure of funds**
Where there is a legal restriction on the purpose to which a funds may be put, the fund is classified in the accounts as restricted. Funds where the capital is held to generate income for charitable purposes and cannot itself be spent are accounted for as endowment funds. Other funds are classified as unrestricted funds. Funds which are not legally restricted but which the Trustees have chosen to earmark for set purposes are treated as classified funds. An explanation of restricted, unrestricted and endowment have been listed in note 12.
## **1.5 Fixed Assets Investments**
Investments are stated at market value as at the date of the Balance Sheet. 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 mid-market price, excluding dividend.
Art assets are stated at their estimated market value at the balance sheet date. These have been formally valued by Bonhams Ltd as at 31st March 2019.
## **1.6**
## **Investment 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 carrying value. Unrealised gains and losses are calculated as the difference between market value at the year end and carrying value. Investment gains and loses, whether realised or unrealised are combined and shown in heading 'Gains/ (Losses) on investments in SoFA.
## **1.7**
## **Pensions Contributions**
The costs of two staff members working for the charity are recharged by Homerton University Hospital NHS Foundation Trust. Associated Pension contributions to the NHS Superannuation and other schemes are disclosed within the Trust's financial statements. However, the recharged costs are included within the Charitable Fund Accounts under the heading "Charitable activities".
## **1.8**
## **Pooling Scheme**
No official pooling scheme has been adopted for investments relating to any funds.
19
## **Homerton University Hospital NHS Foundation Trust Charitable Fund Annual Accounts 2020/21**
## **1.9 Transfer between funds**
Charitable funds policy is not to transfer funds between restricted, unrestricted and endowment funds.
## **1.10 Cash at bank and in hand**
Cash at bank and in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
## **1.11 Liabilities**
Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts.
## **1.12 Financial Instrument Disclosure**
The charity has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.
Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due. Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account. Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.
The Charity holds investments with BlackRock Investment Managers and receives dividend income quarterly. These investments are classed as Financial Instruments. The carrying amount of financial assets measured at fair value through income and expenditure is £537,391.61
## **1.13 Going Concern**
At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future and for a minimum of 12 months. Thus, the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
## **2**
## **CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY**
In the application of the Charity’s accounting policies, which are described in note 1, the Trustees are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an on-going basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
The Trustees do not consider there are any critical judgements or sources of estimation uncertainty requiring disclosure beyond the accounting policies listed above.
20
## **Homerton University Hospital NHS Foundation Trust Charitable Fund Annual Accounts 2020/21**
## **3.0 INCOME**
|**Analysis of income from donations, legacies and grants**
Donations
Legacies
General grants
Donations of Gifts in Kind received during Covid-19 pandemic up to a value of £25759 w
**3.1**
**Analysis of income from other trading activities**
Fundraising activities
Bank interest
**3.2**
**Analysis of income from investments**
Dividend received from BlackRock investment
**4**
**EXPENDITURE**
**Analysis of expenditure on raising funds**
Operating fundraising events
**4.1**
**Analysis of expenditure on charitable activities**
Patient welfare and amenities
Staff welfare and amenities
Salaries
Independent Examiner/Statutory Audit
Other costs|**2020/21**
2019/20
**£000**
£000
**356**
137
-
-
-
-
**356**
137
ere included as income.
**2020/21**
2019/20
**£000**
£000
**-**
5
**-**
-
**-**
5
**2020/21**
2019/20
**£000**
£000
17
15
**2020/21**
2019/20
**£000**
£000
**-**
(1)
**2020/21**
2019/20
**£000**
£000
**(100)**
(73)
**(43)**
(12)
**(58)**
(41)
**(5)**
(5)
**-**
(3)
**(206)**
(134)|
|---|---|
The charity does not directly employ any staff. The costs of Trust staff who engage in the charity's activities are recharged to the charity.
Independent Examiners fees £5k above includes VAT of £750.
Donations of Gifts in Kind received during Covid-19 pandemic up to a value of £25,759 were included as Patient welfare and amenities expenses.
21
## **Homerton University Hospital NHS Foundation Trust Charitable Fund Annual Accounts 2020/21**
## **5 COMPARATIVE STATEMENT OF FINANCIAL ACTIVITIES**
|**INCOME FROM:**
Donations and legacies
Other trading activities
Investments
**TOTAL INCOME**
**EXPENDITURE ON:**
Raising funds
Charitable activities
**TOTAL EXPENDITURE**
**Net income/(expenditure) before investment**
**gains/(losses)**
Net gains/(losses) on investment
**Net income/(expenditure) before tax**
Taxation
**Net income/ (expenditure) for the year**
Transfer between funds
Other recognised gains/ (losses):
Actuarial gains/(losses) on defined benefit schemes
**NET MOVEMENT IN FUNDS**
**Reconciliation of Funds**
Total funds brought forward as previously reported
Prior year adjustment
Total funds brought forward as restated
Net movement in funds for the year
**Total funds carried forward**|**2019/20**
Restricted Unrestricted Endowment
**Total**
Funds
Funds
Funds
**Funds**
£000
£000
£000
**£000**
40
97
-
**137**
-
5
-
**5**
-
15
-
**15**
40
117
-
**157**
-
(1)
**(1)**
(51)
(83)
-
**(134)**
(51)
(84)
-
**(135)**
(11)
33
-
**22**
-
(56)
-
**(56)**
(11)
(23)
-
**(34)**
-
-
-
**-**
(11)
(23)
-
**(34)**
-
-
-
**-**
-
-
-
**-**
-
-
-
**-**
(11)
(23)
-
**(34)**
47
1,009
932
**1,988**
-
-
-
**-**
-
-
-
**-**
(11)
(23)
-
**(34)**
36
986
932
**1,954**|
|---|---|
## **6 ANALYSIS OF ASSETS AND LIABILITIES BETWEEN FUNDS**
|Tangible fixed assets
Current assets
Current liabilities
Creditors due after one year
At 31 March 2021
At 31 March 2020|Restricted Unrestricted Endowment
**Total**
Funds
Funds
Funds
£000
£000
£000
**£000**
-
836
-
**836**
157
311
932
**1,400**
-
(29)
-
**(29)**
157
1,118
932
**2,207**
36
986
932
**1,954**|
|---|---|
22
## **Homerton University Hospital NHS Foundation Trust Charitable Fund Annual Accounts 2020/21**
|**7**
**NET MOVEMENT IN FUNDS**
Net outgoing resources
Net movement on investments
Net movement in funds for the year
**8**
**ANALYSIS OF FIXED ASSET INVESTMENTS**
**8.1**
**Market Valuation**
**BlackRock Investments**
Opening market value
Disposals
Net gain on revaluation
Closing market value
**Art Investments**
Opening market value
Additions
Disposals
Closing market value
**8.2**
**Type of Investments**
Investments in Common Investment Fund
Other investments|**2020/21**
**£000**
**167**
**86**
**253**
**31 March 2021**
**£000**
**451**
**-**
**86**
**537**
**299**
**-**
**-**
**299**
**31 March 2021**
**Held in UK**
**£000**
**537**
**299**
**836**|**2019/20**
£000
22
(56)
(34)
31 March 2020
**£000**
708
(200)
(57)
451
298
1
-
299
31 March 2020
Held in UK
£000
451
299
750|
|---|---|---|
Investments are the funds invested within BlackRock Investment Management. The market value as at 31 March 2021 was £537391.61. The Annual Management Charge of the fund is reflected in the price of the fund.
Other investments are the Art Assets, valued at market value as at 31st March 2021 by the trust's Art Curator. A professional valuation was carried out by Bonhams Art valuers in March 2019.
|**9**
**ANALYSIS OF DEBTORS**
**9.1**
**Amounts falling due within one year:**
Endowment funds
Other Debtors
**Total debtors falling due within one year**
**9.2**
**Amounts falling due over one year:**
Endowment funds
**Total debtors falling due after more than one year**
**Total debtors**|**31 March 2021**
**£000**
**31**
**-**
**31**
**466**
**466**
**497**|31 March 2020
£000
31
-
31
497
497
528|
|---|---|---|
The Endowment funds debtor reflects the balance of an interest free loan originally in the amount of £932,000 from the Charity's permanent endowment fund for the purpose of providing a new lecture theatre at the Homerton University Hospital Foundation Trust. The original repayment term was 30 years from August 2006.
23
## **Homerton University Hospital NHS Foundation Trust Charitable Fund Annual Accounts 2020/21**
|||**31 March**|31 March|
|---|---|---|---|
|**10**|**ANALYSIS OF CREDITORS**|**2021**|2020|
|||**£000**|£000|
||Amounts falling due within one year:|||
||Accruals|**29**|33|
|**10**
**ANALYSIS OF CREDITORS**
**31 March**
**2021**
31 March
2020
**£000**
£000
Amounts falling due within one year:
Accruals
**29**
33|**10**
**ANALYSIS OF CREDITORS**
**31 March**
**2021**
31 March
2020
**£000**
£000
Amounts falling due within one year:
Accruals
**29**
33|**10**
**ANALYSIS OF CREDITORS**
**31 March**
**2021**
31 March
2020
**£000**
£000
Amounts falling due within one year:
Accruals
**29**
33|**10**
**ANALYSIS OF CREDITORS**
**31 March**
**2021**
31 March
2020
**£000**
£000
Amounts falling due within one year:
Accruals
**29**
33|
|---|---|---|---|
||**STATEMENT OF MOVEMENTS ON RESERVES**
Fund balances brought forward at 1st April
Income
Expenditure
Gains/ (losses)
Fund balances carried forward at 31 March|Restricted
Unrestricted
Endowment
Funds
Funds
Funds
£'000
£000
£000
36
986
932
162
211
-
(41)
(165)
-
-
86
-
**157**
**1,118**
**932**|**Total**
**£000**
**1,954**
**373**
**(206)**
**86**
**2,207**|
## **11 STATEMENT OF MOVEMENTS ON RESERVES**
## **12 ANALYSIS OF FUNDS**
## **12.1 Restricted Funds**
Restricted fund account had a balance of £36,000 as at end of March 2020. Charity received several grants totalling £162,000 from NHS Charities Together for staff welfare as a result of Covid-19 pandemic. During the year the charity spent £41,000 of restricted funds for the specific use of the Peer Navigator programme (£30,000) and on staff welfare (£11,000). The balance of £157,000 is to be spent on patients who seek treatment in sexual health as well as on staff welfare specifically in relation to the long term effects of Covid-19 pandemic.
## **12.2 Unrestricted Funds**
During the year the charity received unrestricted funds totalling £211,000.
Unrestricted funds are those funds that may be spent at the discretion of the trustees on the charity's objectives where no restrictions have been made in writing.
## **12.3 Endowment Funds (Children Services Fund)**
This was set up to partially fund the build for the new lecture theatre. The value of the fund at 31 March 2021 was £932,000 and there has been no movement on this fund during the year.
## **13 FUNDS NOTE**
The objectives of the unrestricted funds are 'for any charitable purpose or purposes relating to the National Health Service provided by Homerton Hospital NHS Foundation Trust'.
## **14 COMMITMENTS, LIABILITIES AND PROVISIONS**
There were no commitments outstanding at year end other than those disclosed in the accounts. Liabilities are recognised in the accounts once they have incurred either a legal or constructive obligation to expend funds.
24
## **Homerton University Hospital NHS Foundation Trust Charitable Fund Annual Accounts 2020/21**
## **15 RELATED PARTY TRANSACTIONS**
Homerton University Hospital NHS Foundation Trust has a close relationship with the charity as the fund is set up to benefit the hospital's patients and staff. Related party transactions are explained below.
The balance of the interest free loan provided by the charity to the Trust as at 31st March 2021 is £497,090. During the year the Trust has paid £31,065 to the charity as a loan repayment. At the same time the charity has paid the Trust £58,202 in respect of salary recharges.
## **16 TRUSTEE REMUNERATION AND EXPENSES**
The Trustees did not receive any remuneration, benefits or reimbursement of expenses during the year ended 31 March 2021.
## **17 STAFF**
No staff were directly employed by the charity during the year (2020 nil).
## **18 POST BALANCE SHEET EVENTS**
There are no post balance sheet events to report for the financial year ended 31 March 2021.
## **19 OPERATING ACTIVITIES**
|Net income for the year
Adjustment for:
Dividends, interest and rents from investments
Operating cash flow before movement in working capital
Loss / (profit) on investment assets
(Increase) / decrease in debtors
Increase / (decrease) in creditors
Cash generated by operating activities|**31-Mar-21**
31-Mar-20
**£**
£
**£000**
£000
**253**
(34)
**(17)**
(15)
**236**
(49)
**(86)**
56
**31**
31
**(4)**
11
**177**
49|
|---|---|
## **20 GIFTS IN KIND**
During 2020/21 charity received various items of gifts in kind as a result of Covid-19 pandemic. All these gifts received were distributed amongst the staff and patients. Gifts where values can be attributed to are included within the financial statements as income and expenditure. This valuation came to £25,759.
25