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2023-03-31-accounts

Registered Charity 1061812

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Opening of the Childrens Outpatients Department - March 2023
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Ms. Laura Waters, Head of AirArts, Lambie, Charity Mascot, Mr Michael Copestake, High Sheriff of Derbyshire, Mrs Jill Matthews, Charity Chief Officer, and Mr Paul Teager, Chairman of Childrens League of Friends

1

Contents

The Corporate Trustee Foreword 4
Our Charity Vision 5
Our Mission 5
Our Achievements 2022/23 5
Childrens Outpatient Department Opening - Case Study 6 - 7
Our Charity Structure, Governance and Management 8
Our Corporate Trustee Members 9 - 10
Meet Our Charity Chief Officer 11
Renal Scanner and Youth Team Case Studies 12
Adapted Bikes and Breast Feeding Support Case Studies 13
Management of Our Charity Funds 14
Risk Management 14
Our Strategy 2022-27 15
Statement of Responsibilities 16
Murals at Queens Hospital Case Study 17
Annual Accounts - Independent Auditors' Report 18-20
Main Financial Statements
Statement of Financial Activities 21
Balance Sheet 22
Cash Flow Statement 23
Notes to the Accounts 24- 30
Accounting Policies 31 - 35
Glossary 36 - 38
How to contact Your Charity 39

2

Annual Report

From left to right:

  1. The Forget Me Not, Staff Remembrance Garden at Royal Derby Hospital

  2. Don Amott, Leisure Kingdom, Fencing Plaque sponsor

  3. Allan Burton and family raised an amazing £1,775 for Ward 301 by taking part in our Abseil earlier this year.

  4. The charity joined the British Sikh Nurses Association at a Restart A Heart community day

  5. A new mural in place on a ward at Royal Derby Hospital to brighten a bed bay

  6. New artwork at the Children's Outpatients Area at Royal Derby Hospital

  7. A new welcoming mural at the Combined Day Unit at Royal Derby Hospital

  8. Artwork unveiled at Queens Hospital Burton in the entrance to Therapies thanks to fundraisers on the unit

  9. New Ultrasound scanner purchased to support the Renal team at Royal Derby Hospital

  10. A fundraiser completes his skydive for CTAU in 2023. The unit raised over £3000 for a vein finder.

  11. A fundraiser smiles after completing their Abseil in 2022

  12. A carousel horse produced with Air Arts for the Burton Carousel Art Trail at Queens Hospital Burton

  13. A fundraiser gives the camera the thumbs up when taking part in the charity skydive

3

Corporate Trustee Foreword

The year has been another of great challenge for the NHS, still recovering from the aftereffects of the pandemic whilst trying to deliver services at pre-pandemic levels to reduce waiting times for patients and continue to improve outcomes. University Hospitals of Derby and Burton NHS Foundation Trust (UHDB) has benefited hugely from its partnership with Derby and Burton Hospitals Charity and their aims to improve services for patients, support staff wellbeing and to further research and development. This year has seen the completion of the first year of the five-year Charity strategy. The focus has been to create a solid foundation on which to build and grow the Charity within our communities.

With that aim we welcomed Jill Matthews, as the Charity Chief Officer to lead it on the next stage of its journey.

The Charity has also set out its direction of travel with one of its main objectives being to support UHDB with achieving its strategic aims and enhancing the services provided to patients and continuing to support staff.

We saw too the continuation of the joint work between the Charity and AirArts with further expansion across our five sites. Thanks to £16,000 funding from Foundation Derbyshire and National Lottery

Awards for All fund over 100 creative arts and music workshops were delivered across wards at all 5 sites to celebrate the jubilee. Many of you may have attended the Choral Forest event at Lichfield Cathedral in October 2022. The concert showcased our UHDB staff wellbeing choir and staff reading poetry written during the pandemic. Forming the backdrop to the Choral Forest was intricate artwork created by artist EJ Lance and sculptor Miles Halpin, each tree referencing one of the five UHDB hospitals, with a key figure at the centre including Queen Victoria, Samuel Johnson, Sir Robert Peel, Queen Elizabeth II, and Florence

Nightingale. The trees will be installed in their permanent homes in their respective hospitals in July 2023 as part of our NHS 75 celebrations.

This year also saw the first gala dinner being held with our charity partners, Derbyshire County Cricket Club, this looks set to be a regular annual event.

Our younger patients and their families can now benefit from the newly refurbished Childrens Outpatients Department. This was formally opened by the High Sheriff of Derbyshire, Mr Michael Copestake, at the end of March 2023. This project was jointly funded by the Charity and the Friends of the Childrens Hospital. An example of the artwork at the opening ceremony can be seen on the front page of this Annual Report and Accounts.

As you can see the Charity has been very active over the last year and as Chair of the Board of University Hospitals of Derby and Burton NHS Foundation Trust which acts as Corporate Trustee to the Charity, I am therefore delighted to present the Annual Report and Accounts for Derby and Burton Hospitals Charity for the year ending 31 March 2023 in accordance with the Charities Act 2011.

Dr Kathy McLean OBE Chair, Corporate Trustee/

University Hospitals of Derby and Burton NHS Foundation Trust

Date: 20 July 2023

4

Our Charity

Vision/Mission/Achievements

Our Vision

Derby and Burton Hospitals Charity partners with University Hospitals of Derby & Burton to provide Exceptional Care Together.

Supporting staff to care for patients in safe, high-quality environments, using the latest equipment, technology and learning and contributing to the future of health through a commitment to research and development.

Our Mission

To serve the population of Derby, Derbyshire, and Staffordshire by:

Our Achievements 2022/23

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Fundraising
Air Arts - Art in
Strategy
Consultant and Hospitals Roll Out
All Sites 2022-23 &
Bid Writer
Beyond.
Appointed
Inaugural Gala
Dinner
October 2022
Small Grants
Research Fund
Refurbished Childrens
Launched
Outpatient Department
6 Projects To
March 2023
Be Supported
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5

airarts Royal Derby Hospital Children's Outpatient Department

Bright new artwork has been unveiled at Royal Derby Hospitals Childrens Outpatients department thanks to a collaboration between charity-funded arts programme, Air Arts, Derby & Burton Hospitals Charity, and the Children's hospital League of Friends, to create a sense of calm for patients moving around the hospital.

The entire Children's hospital reception area was transformed as part of the project including a new vinyl floor throughout designed by Lisa Pilley and supported by Vercity (the Trust's PFI partner), a new colour scheme by Lisa and a total replacement of all the seats from Rhubarb seating manufacturers.

The project has been devised to help children and young people, as well as parents and carers, interact with their surroundings, creating adventure and distraction to ensure they feel relaxed at what can be a difficult time.

The refurbished areas act as a distraction for children on their way to appointments by featuring bright and fun artwork on the walls throughout the department.

The exciting designs by Carl Wilson feature colourful cartoon characters and even feature illustrations based on Carl and his son, River, exploring the world together.

Project Manager Supports Officer, Lisa Redfern, ensured the project was completed with minimal disruption to patients:

“The overarching priority throughout the project has been to ensure that there was minimal disruption to patient care and pathways.

The redeveloped areas greatly enhance the patient experience in the hospital and the new artwork has helped engage and distract the children using them, often in very difficult moments."

Artist, Carl Wilson added:

“I loved working on this project. It was great to be able to create a series of immersive illustrations to provide some escapism to patients and visitors. I hope it will provide a joyful experience and inspire imaginations."

Jill Matthews, Chief Officer for Derby & Burton Hospitals Charity, was keen to remind staff who see the artwork every day, that the public are supporting them:

"What I'd like to remind everybody is, as you look at this beautiful scenery, you have all done so much for our patients and their families and when you look at all of this artwork, remember, the money came from people who wanted to thank you. This is our communities saying thank you."

The revamp is one of the latest installations by Air Arts, an arts initiative supported by the hospital charity. Air Arts have also recently installed inclusive artwork welcoming patients and visitors to the combined day unit at Royal Derby Hospital in a variety of languages, and bright new artwork on wards to brighten up uninviting areas. Laura Waters, Head of Arts at UHDB said, when referring to the Childrens Outpatient department, that:

" This is the biggest project Air Arts has undertaken to date and it’s been amazing to see a full scheme come together to completely transform our Childrens hospital.

Everything has been developed in consultation with staff and patients, and the result is a calm and welcoming environment, clean and modern but also fun and inviting for children and adults alike. It just shows what a difference we can make when the whole environment is thought through as a unified scheme.”

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Our Charity

Structure, Governance and Management

Our Charity Structure, Governance and Management

The University Hospitals of Derby and Burton NHS Trust, through its Trust Board, act as the Corporate Trustee of the Charity. The Corporate Trustee has established a Charitable Funds Committee (CFC) which reports to the Corporate Trustee on a regular basis.

The Committee meets at least four times a year, and is made up of five members, comprising three NonExecutive Directors of the Trust, and two Executive Directors (Executive Chief Financial Officer/Deputy Chief Executive and Managing Director - Burton until August 2022, who was replaced by the Executive Chief Nurse in February 2023.) The Executive Chief Operating Officer attended the October 2022 meeting of the Committee to ensure quoracy.

The CFC terms of reference were subject to their annual review during the year and include:-

On behalf of the Trust Board, the Corporate Trustee approves all major decisions and remains responsible for the activities of the Charity.

The Trust Board do not receive any remuneration for their role as Corporate Trustee.

Derby & Burton Hospitals Charity’s principal office is Royal Derby Hospital, Uttoxeter Road, Derby, DE22 3NE. The Charity registration number is 1061812. The Charity’s governing document is the Declaration of Trust dated 13 March 1997 as amended by Statutory Instrument of 18 March 1999 together with Supplement Deeds of 16 November 1999 and 17 August 2004, and further amended on 6 November 2018 following the merger of Derby Teaching Hospitals NHS Foundation Trust and Burton Hospitals NHS Foundation Trust in July 2018 to form University Hospitals of Derby and Burton NHS Foundation Trust. The Charity was then renamed Derby & Burton Hospital Charity to recognise this merger.

8

Our Charity

Corporate Trustee Members

Our Corporate Trustee Members

The Charity works to support UHDB, across all the five sites under the umbrella of the Trust (Royal Derby Hospital, Queens Hospital Burton, the Community Hospitals of Florence Nightingale, Sir Robert Peel and Samuel Johnson) together with the wider communities across Derby, Derbyshire, and Staffordshire. Full details of the Trust Board related parties are disclosed in the UHDB Annual Report and Accounts.

Members of the Corporate Trustee are advised on their roles and responsibilities through the sharing of appropriate guidance together with induction and training on appointment. The Corporate Trustee have their own Terms of Reference.

The current list of Trust Board Members, who sit as the Corporate Trustee, is shown in the table below:-.

Executive Director Position Held Change During The Year
(if applicable)
Stephen Posey Chief Executive Officer Appointed as Chief Executive
Officer 03/09/2022
Simon Crowther Executive Chief Financial
Officer/Deputy Chief Executive
Officer		 Appointed as Deputy Chief
Executive Officer 30/09/22
Garry Marsh Executive Chief Nurse Appointed as Executive Chief
Nurse 01/09/22
Sharon Martin Executive Chief Operating
Officer		 N/A
Dr James Crampton Executive Medical Director Appointed as Executive Medical
Director 03/01/23
Amanda Rawlings Executive Chief People Officer N//A
William Monaghan Executive Chief Digital
Information Officer		 Appointed as CDIO 01/02/23
Executive Directors Left During
The Year		 Position Held Change During The Year
(if applicable)
Duncan Bedford Managing Director - Burton Retired 22/07/22
Dr Magnus Harrison Interim Chief Executive Officer Left the Trust 02/10/22
Cathy Winfield Executive Chief Nurse Left the Trust 08/05.22

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Non-Executive Directors Position Held Change During The Year
(if applicable)
Kathy McLean Trust Chair Reappointed January 2022 for
term of office 01/08/2022 to
31/07/2025
Sardip Sandhu Non-Executive Director Appointed 15/02/2021 and Term
Expires 14/02/2024
Justin Shannahan Non-Executive Director Reappointed November 2021
for Term of Office 01/06/2022 to
31/05/2025
Christine Fearns Non-Executive Director (Chair of
Charitable Funds Committee)		 Appointed 01/02/2020 and Term
Expired 30/04/2023
Prof. Victoria Chapman Non-Executive Director
(Member of Charitable Funds
Committee)		 Appointed 01/02/20 and Term
Expired 30/04/23
Stephen Jarratt Non-Executive Director Reappointed November 2022 to
30/04/2023
Kathy Farndon Non-Executive Director Appointed 01/04/20 and Term
Expired 30/04/23
Non-Executive Directors Left
During The Year		 Position Held Change During The Year
(if applicable)
Dr Ian Gell Non-Executive Director Appointed 01/07/2019 and Term
Expired 30/06/2022
Joy Street Non-Executive Director Initially Appointed 01/07/2018
(extended Nov 2019) and Term
Expired 31/03/23
Non-Executive Directors Joined
Post 31stMarch 2023		 Position Held Change During The Year
(if applicable)
Dr Jaspal Taggar Non-Executive Director Appointed 01/05/2023
Mrs Nadine Pemberton Jn
Baptiste		 Non-Executive Director Appointed 01/05/2023
Ms. Billie Lam Non-Executive Director Appointed 01/05/2023
Mr Ian Lichfield Non-Executive Director Appointed 01/05/2023
Mr Christopher Harrison Non-Executive Director Appointed 01/06/2023

10

Our Charity

Introduction from Jill Matthews, Charity Chief Officer

I joined the Charity in July 2022 and was overwhelmed by the warm welcome I received from members of my Charity Team and colleagues across UHDB.

This is the first year of our ambitious five-year strategy which aims to better establish the Charity as a trusted partner to UHDB, raising our profile amongst the patients, their relatives, our staff, and our staff networks. We are seeking to strengthen our links with the different communities across Derby, Derbyshire, and Staffordshire.

Over this coming year we will seek to build a credible reputation as the Charity partner of choice for local businesses. We will be launching a charity appeal to support the Trust in delivering improvements to cancer care and to help deliver its key strategic aims. The Charity will continue to play its part in making UHDB a great place to work for our staff.

The Charity is extremely lucky to benefit from the continued support of our many fundraisers, and we would like to take this opportunity to offer our heartfelt thanks to them for this tremendous support. Through the funds they raise we are able to "Make Lives Better" for our patients and staff.

We would also like to thank those that have remembered us through the leaving of a legacy. We are privileged to have these funds and hope their families and friends can take some comfort that their legacy continues to make a difference across multiple services for so many patients and staff at UHDB.

When I joined the Charity, I was fortunate to have an amazing team to work with. The team has been strengthened by the recent appointment of a Business Manager, Head of Governance and three team members to provide support through our merchandise sales and engagement with our hospital teams and local communities.

The Charity Team are directly employed by the UHDB Trust (with NHS contracts of employment). The salaries of all members of the Charity Team are recharged to the Charity which funds these costs through the operational budget.

The Charity also receives financial advice from UHDB. This support is managed and provided by the Executive Chief Financial Officer/Deputy Chief Executive Officer and the Assistant Director of Finance - Financial Services. However, the Charity can obtain independent legal and financial advice through the Corporate Trustee if required.

I want to express my thanks for each and everyone one of our supporters, be they staff, patients and their families and the wider community for your amazing commitment to the NHS and its achievements. We could not do what we do without you.

Jill Matthews Charity Chief Officer Derby & Burton Hospitals Charity

Date: 20 July 2023

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Renal Scanner

Funding from the charity supported a new ultrasound scanner for the Renal department. Scanning is an important part of assessing kidney function and the new scanner assists practitioners in producing higher quality images to enable better assessment.

Professor Nick Selby explains:

“The additional benefit to patients will be because the new Ultrasound machine will allow higher quality images, which will directly benefit patient care in terms of assessment and US guided kidney biopsy.

The new features on the scanner also provide opportunities for new ways of assessing renal transplant patients, by measuring tissue ‘stiffness’ as a marker of fibrosis, and to measure blood flow in the kidneys, allowing for better treatment and assessment.”

Youth Team

The youth service helps young people living with long term health conditions across Derbyshire and Staffordshire to increase their independence, manage their conditions and introduce them to other young people who know what it's like to access hospital services.

Eleanor Gambini, Senior Youth Team Worker,

“The Charity is absolutely fundamental in helping us run our services, from supporting the hiring of our youth club venues, right through to helping us fund our trips and activities for our group. The trips often provide life changing opportunities for the group that they often miss out on at school, and they are able to create lasting memories with their friends and family”.

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Amputees at Royal Derby Hospital are now able to access adapted bikes to help with exercise thanks to support from Derby & Burton Hospitals Charity and Cycle Derby.

The adapted bikes are used by a group of amputees supported by staff from Royal Derby Hospital's Amputee Rehab Centre and are hired to encourage exercise and socialising within the group.

Lizzy Sharples, Assistant Practitioner for the unit:

“Some of our patients talk to us about getting back into physical fitness and it is something that is hard to get back in to when you have had such a significant event such as amputation. Cycle Derby are fantastic, they will find something for everyone. Their bikes have made it possible for everyone to get out and cycle and charitable funds have helped us with funding the scheme and refreshments so everyone here can make a day of it and socialise with other amputees.”

Jo Kaye-Allan, occupational therapist:

“It's brilliant. It's so inclusive, everyone can have a go whether a prosthetic limb wearer or a wheelchair user, it's not only a great physical workout but it’s great for people’s mental health as well. It brings them together, in peer support and connection.”

Breast Feeding Support

As part of World Breastfeeding Awareness Week in August, staff engaged with the hospitals Gender Equality network, feeding back that they had found it difficult returning to work whilst still breastfeeding/ expressing with a key issue being a lack of storage for expressed milk.

After working together with the Trust and Charity, staff can now loan out ‘lockboxes’ for safe storage of up to 6 bottles of expressed milk in staff fridges.

Amanda Rawlings, Executive Chief People Officer

has said “Sadly, we have heard stories of returning staff who have struggled to get support to be able to take a break whilst at work and gain access to suitable space for expressing. As a compassionate and inclusive employer, we expect all leaders and teams to reach out early, welcome their colleagues back to work and enable breaks and suitable space to express whilst at work.”

13

Our Charity

Management of Our Charity Funds Our Strategy 2022 - 2027

Management of Our Charity Funds

The Charity’s aim is to enhance and improve the experience of patients and visitors using the hospital and to support the UHDB staff to enable improved patient care. The funds are held across 219 individual charitable funds.

To be fully effective the Charity will ensure:

Grants are made in accordance with charity law, our governing document and the wishes and directions of donors. In making grants, we endeavour to reflect the wishes of patients and staff by directing funds towards the areas they tell us are most in need. When considering where to focus our attention our Corporate Trustee and, particularly, the members of the Charitable Funds Committee have regard to the Charity Commission for England and Wales’s guidance on public benefit. All applicants are asked to consider how this will deliver public benefit within the Trust. The Charitable Funds Committee and Corporate Trustee have sight of these applications when considering them for approval. A full discussion is held as to whether each grant would in fact satisfy the public benefit.

The running costs are robustly monitored by the Charity Team and reported to the Charitable Funds Committee so that they have regular oversight of these costs. Expenditure is reviewed in detail, these running costs are minimised through efficient governance and administration. Similarly, the costs associated with fundraising events are measured against the level of income generated relating to that expenditure.

The Charity will also be mindful of the impact of grants made in order that it can ensure it uses its resources wisely.

Risk Management

The Charity has its own Risk Register which has been presented and approved by both the Charitable Funds Committee and Corporate Trustee.

The Charity Senior Team reviews the operational risks for the Charity on a monthly basis.

The Charity follows the principles of the Trust's Risk Management Policy.

14

Our Strategy 2022-2027

The Charity has looked to give particular focus to its governance, policies, and procedures during 2022/23. This included a review of governance and infrastructure with support from 360 Assurance Internal Auditors. The recommendations made have supported the Charity in ensuring that there is a more robust governance structure in place moving forward. This has included ensuring that the Roles and Responsibilities of the Corporate Trustee are clearly defined together with an approved set of Terms of Reference for the Corporate Trustee. The Charity continues to support the Corporate Trustee and its members with appropriate induction and training sessions. The Charity will continue to review its policies and procedures supported by the Charity Head of Governance.

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Year 5 Year 1
(2026/27) (2022/23)
Forward Looking Create a solid
– next 5-year Foundation -
strategy Governance
improvements.
Year 2
Year 4
(2023/24)
(2025/26)
Improve Capability -
Future State – £5m
Strengthen Team,
annual income, deliver
Raise Awareness,
preferred model of
Fundraising Strategy,
Charity for the health Year 3 Explore Future
economy
(2024/25) Models
Go for Growth –
significant increases to
income and grant making,
determine future model.
----- End of picture text -----

Dr Kathy McLean OBE Chair of Corporate Trustee Chair, University Hospitals of Derby, and Burton NHS Foundation Trust

Date: 20 July 2023

15

Our Charity Statement of Responsibilities

Statement of Responsibilities

The Trustee is responsible for preparing the Trustee’s Report and the Financial Statements in accordance with applicable law and the United Kingdom Accounting Standards known as United Kingdom Generally Accepted Accounting Practice (UKGAAP).

The law applicable to charities in England and Wales require the Trustee to prepare financial statements for each financial year, which give a true and fair view of the state of the 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 Trustee are required to:

The Trustee are responsible for keeping proper accounting records that disclose with reasonable accuracy, and at any time the financial position of the Charity and to ensure that the financial statements comply with the Charities Act 2011, together with the changes being brought forward under the Charities Act 2022, the Charity (Accounts and Reports) Regulations 2008 and the provision 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 Trustee is 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 another jurisdiction.

Signed On behalf of the Corporate Trustee

Stephen Posey Chief Executive Officer University Hospitals of Derby, and Burton NHS Foundation Trust

Date: 20 July 2023

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Derbyshire based Mural artist Lynne Hollingsworth has been hard at work on three mural projects at Queens Hospital Burton - Therapies, Multi Faith Centre, and children’s outpatients. This work was possible in part thanks to Surgical Appliance Supervisor Sandra Carlin who raised over £4,000 towards the cost of the mural and was shortlisted for Fundraiser of the Year at the Trust's Making a Difference Awards.

17

Annual Accounts

Independent Auditors Report

Independent Auditor’s Report to the Trustees of Derby & Burton Hospitals Charity

Opinion

We have audited the financial statements of Derby & Burton Hospitals Charity (the ‘charity’) for the year ended 31 March 2023 which comprise the Statement of Financial Activities, Balance Sheet, Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern:

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

Other information

The trustees are responsible for the other information. The other information comprises the information included in the trustees’ Annual Report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

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In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements, or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Matters on which we are required to report by exception:

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

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 14, the trustees are responsible for the preparation of financial statements which give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with regulations made under section 154 of that Act.

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

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

Based on our understanding of the charity and industry, we identified that the principal risk of fraud or noncompliance with laws and regulations related to:

19

We focussed on those area that could give rise to a material misstatement in the Charity financial statements. Our procedures included, but were not limited to:

It is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's A further description of our responsibilities for the audit of the financial statements is located at the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the charity’s trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity’s trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

James Delve (Senior Statutory Auditor)

For and on behalf of

PKF Smith Cooper Audit Limited

Statutory Auditors

Prospect House 1 Prospect Pl Derby DE24 8HG Date: 27 July 2023

20

Main Financial Statements

Statement of Financial Activities

The Statement of Financial Activities is a financial report detailing the change in the Charity’s net assets during the financial year.

It provides an analysis of the income and endowment funds received and the expenditure by the Charity on its activities and presents a reconciliation of the movements in the Charity’s funds for the reporting period.

2022-23 2022-23 2022-23 2022-23 2021-22 2021-22 2021-22 2021-22
Note Unrestricted
Funds		 Restricted
Funds		 Endowment
Funds		 Total Funds Unrestricted
Funds		 Restricted
Funds		 Endowment
Funds		 Total Funds
£000 £000 £000 £000 £000 £000 £000 £000
Income and Endowments from:
Donations and Legacies 2 (1,415) (417) 0 (1,832) (1,428) (132) 0 (1,560)
Charitable ActivitiesIncome (50) 0 0 (50) (142) 0 0 (142)
Other TradingActivities (397) 0 0 (397) (239) 0 0 (239)
Investment Income (401) 0 0 (401) (395) 0 0 (395)
Other Income (14) 0 0 (14) (14) 0 0 (14)
Total Income (2,277) (417) 0
(2,694)		 (2,218) (132) 0
(2,350)
Expenditure On:
Raising Funds 3 762 0 0 762 439 0 0 439
Charitable Activities 2,562 94 0 2,656 2,013 176 0 2,189
Total Expenditure 3,324
94
0
3,418
2,452
176
0
2,628
Net(Gains)/Losses on Investments 639 0 21 660 (657) 0 (21) (678)
Net(Income)/Expenditure 1,686
(323)		 21
1,384
(423)		 44
(21)		 (400)
Transfers Between Funds (10) 10 0 0 0 0 0 0
Net Movement in Funds 1,676
(313)		 21
1,384
(423)		 44
(21)		 (400)
Reconciliation of Funds
Total Funds Brought Forward (11,330) (335) (359) (12,024) (10,907) (379) (338) (11,624)
Total Funds Carried Forward (9,654) (648) (338) (10,640) (11,330) (335) (359) (12,024)

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Balance Sheet

The Balance Sheet provides a true and fair view of the Charity’s assets and liabilities and how these are represented by the different classes of funds held by the Charity. The objective of the Balance Sheet is to show the resources available to the Charity and whether these are available for all purposes of the Charity or have to be used for specific purposes because of legal restrictions placed on their use.

Notes As at 31 March 2023 As at 31 March 2023 As at 31 March 2023 As at 31 March 2023 As at 31 March 2022 As at 31 March 2022 As at 31 March 2022 As at 31 March 2022
Unrestricted
Funds
£000		 Restricted
Funds
£000		 Endowment
Funds
£000		 Total Funds
March 2023
£000		 Unrestricted
Funds
£000		 Restricted
Funds
£000		 Endowment
Funds
£000		 Total Funds
March 2022
£000
Fixed Assets: Investments 7 8,960 648 338 9,946 9,912 335 359 10,606
Total Non-Current Assets: 8,960 648 338 9,946 9,912 335 359 10,606
Debtors 9 141 0 0 141 130 0 0 130
Stock 10 12 0 0 12 9 0 0 9
Cash and Cash Equivalents 11 721 0 0 721 1,604 0 0 1,604
Total Current Assets 874 0 0 874 1,743 0 0 1,743
Current Liabilities:Creditors 12 (180) 0 0 (180) (325) 0 0 (325)
Total Current Liabilities (180) 0 0 (180) (325) 0 0 (325)
Total Net Assets 9,654
648
338		 10,640
11,330
335
359
12,024
The Funds of the Charity:
Endowment Funds 17 0 0 338 338 0 0 359 359
Restricted Funds 18 0 648 0 648 0 335 0 335
Unrestricted Funds 19 9,654 0 0 9,654 11,330 0 0 11,330
Total Funds 9,654
648
338		 10,640
11,330
335
359
12,024

Signed On behalf of the Corporate Trustee

Stephen Posey Chief Executive

University Hospitals of Derby, and Burton NHS Foundation Trust

Date: 20 July 2023

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Statement of Cashflow

The Statement of Cashflow aims to show how changes in balance sheet accounts and income affect cash and cash equivalents, and breaks the analysis down to operating, investing, and financing activities. Essentially, the cash flow statement is concerned with the flow of cash in and out of the Charity.

Total Funds
2022-23
£000		 Total Funds
2021-22
£000
Cash Outflow from Operating Activities (1,284) (522)
Net Cash Inflow in Investing Activities 401 395
Net Cash Change in Cash and cash
equivalents		 (883) (127)
Cash and Cash Equivalents at the
Beginning of the Period		 1,604 1,731
Cash and Cash Equivalents at the
End of the Period		 721 1,604

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Notes To The Accounts

Introduction

These accounts have been prepared using the Going Concern convention. The Trustees consider that there are no material uncertainties affecting the current year’s accounts. In future years, the Trustees have identified that there is a risk of a decline in donations, particularly in relation to legacy income. The Trustees have made adequate arrangements to mitigate these risks as outlined in the Annual Report.

If at any time this document gives reference to terms which are unclear in their meaning, please refer to the glossary which can be found from page 36 onwards. The Charity acknowledges that from time to time there may be minor rounding differences between notes in the accounts and the main statements. Where those amounts account for less than £5k, the Charity deems them to be insignificant in nature and therefore an acceptable rounding difference.

1. Changes in Accounting Policy

The Accounting Policies for the Charity form part of the overall Governance Framework document approved by the Charitable Funds Committee. The accounting policies can be found from page 31. There have been no changes in Accounting Policy for 2022-23.

2. Incoming Resources

Income from donations and legacies is further analysed below.

2022-23 2021-22
£000 £000
Legacies and Donations In Memory 1,096
1,052
General Donations 675
468
FundraisingIncome - 3rd Party 61
40
Total Donations and Legacies 1,832
1,560
2022-23 2022-23 2021-22
£000 £000
Charitable Activities Income 50
142
Other tradingactivities 397
239
Other Income 14
14
Total Other Activities 461
395
2022-23 2021-22
£000 £000
Investment Income 401
395
Total Investment Activities 401
395

Included within general donations are government grants received of £163K, which related to COVID recovery. There are no unfulfilled conditions attached to these grants.

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3. Resources Expended

Analysis of Charitable Fund Expenditure

Unrestricted Restricted Total Unrestricted Restricted Total
2022-23 2022-23 2022-23 2021-22 2021-22 2021-22
£000 £000 £000 £000 £000 £000
Net Charitable Activities:
Medical Equipment 734 0 734 217 0 217
PatientEducationandWelfare 996 26 1,022 1,006 55 1,061
Medical Research 32 0 32 23 0 23
Staff EducationandWelfare 413 68 481 464 121 585
Net Charitable Activities 2,176 **94 ** 2,270 1,710 176 1,886
Plus Support Costs:
Support Costs 386 0 386 302 0 302
Total Support Costs 386 0 386 **302 ** 0 **302 **
Total Charitable Activities
Costs		 2,562 94 2,656 2,012 176 2,188

Analysis of Expenditure on Raising funds

2022-23 2021-22
£000 £000
FundraisingStaff Costs 239
255
Advertising & Marketing Costs 31
23
FundraisingExpenditure 32
37
Lottery 460
124
Total Raising Funds Costs 762
439

4. Trustees Remuneration, Benefits and Expenses

Several of the members of the Corporate Trustee sit on the Charitable Funds Committee and are eligible to reclaim expenses that they may incur in fulfilling their duties for the Charity. In 2022-23, no expenses were paid by the Charity to any Trustee for this role.

5. Staff Costs and Remuneration to Key Charity Operational Personnel

In 2022-23 the Trust employed 12 employees on behalf of the Charity (12 employees in 2021-22). The salaries are paid by the Trust and then are recharged to the Charity. The Charity is led by the Charity Chief Officer and strategic support is received from the Executive Chief Financial Officer/Deputy CEO and the Assistant Director of Finance - Financial Services from the Trust. A proportion of their salary is recharged to the Charity. The salaries of the 12 Charity key operational personnel and the strategic support from the Trust are included in the table below. During the year, the number of employees whose remuneration exceeded £60,000 was 2. Both employees' remuneration fell in the band £70,001 - £80,000.

2022-23 2021-22
£000 £000
Salaries and Wages 392
328
National Insurance Costs (Social
Security Costs)		 42
31
Other Pension Costs 41
43
Total Direct Staff Costs 474
402
Payments for Bank/AgencyStaffing 11
14
Total Staff Costs 485
416

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6. Auditors’ Remuneration

The external auditors' remuneration fee for 2022-23 for PKF Smith Cooper Ltd in respect of the statutory audit is estimated at £9k (2021-22 £8k) and is included as an accrual in the accounts.

7. Investments

The Charity investment funds held are managed by Cazenove Capital Ltd. The value of the Charity’s investments held at fair value are shown in the table below. These are held in a multi asset fund on a 100% total return basis.

Asset Class Percentage % £000
Equities 65% 6,485
Bonds 13% 1,246
Alternatives 15% 1,485
Cash 7% 730
Total 100% 9,946

Movements in the fair value of the investments are recognised as gains or losses in the Statement of Financial Activities. Current investments have a fair value equal to the deposit amount.

8. Financial Instrument Risk Analysis

The Charity Investments which are held by Cazenove Capital Ltd are held in a Multi Asset Fund and cash fund and are identified as being Medium to High Risk. The level of investments is monitored by the Charity Finance Team and are regularly reported to the Charitable Funds Committee. The external investment management advisors have also, during the financial year, attended the Committee meeting and provided an update on the investments. The Charity’s financial operations are carried out in accordance with the Charity’s Standing Financial Instructions and policies and the Trust Standing Orders and Standing Financial Instructions, as agreed by the Corporate Trustee.

Currency Risk

The Charity is principally a domestic organisation with the majority of transactions, assets and liabilities being in the UK and Sterling based. The Charity has no overseas operations and does not invest in currency hedging. The Charity therefore has low exposure to currency rate fluctuations.

Interest Rate Risk

The Charity’s investments are subject to fluctuations in their return in line with the investment portfolio determined by the Trustee. The Charity contracts its investment management operations to an external company who manages the portfolio to mitigate as far as possible the fluctuations in interest rates. The current liabilities of the Charity are covered by identified cash resources and are therefore not subject to interest rate risk.

Credit Risk

The main income for the Charity is mainly in relation to legacy, grants and donations and sponsorship from the Charity’s events. The Charity provides no services under contract. Income is only recognised as it is given to the Charity, meaning that the debtors of the Charity are low and the Charity’s exposure to credit risk is minimal.

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Liquidity Risk

Day-to-day expenses of the Charity are covered through donations, investment interest income earned, and receipts received during the year. This means that the Charity is exposed to a degree of liquidity risk in that there is a dependence day-to-day on sufficient income being generated into the Charity’s bank account to meet obligations as they fall due. This risk is mitigated through reserves held in the Charity investment portfolio. If cash balances are forecast to be be low the limit set in the reserves policy, investments would be managed to increase the cash balance, in line with Charity policies.

9. Debtors

2022-23 2021-22
£000 £000
Legacies 15
15
Debtors - External 126
115
Total Debtors 141
130

The legacies figure above relates to the Pecuniary Legacies where the Charity has been notified of an exact amount due from solicitors and legacy notification services.

10. Stock

2022-23 2021-22
£000 £000
Merchandise 12
5
Total Stock 12
5

11. Cash and Cash Equivalents

2022-23 2021-22
£000 £000
CharityCurrent Account 415
1,217
CharityLotteryAccount 306
387
Total 721
1,604

12. Creditors

Amounts owed to University of Derby and Burton Hospitals NHS Foundation Trust (UHDB) on the 31 March 2023, relate to the sundry creditor payments made by the Trust on behalf of the Charity that have not yet been recharged.

2022-23 2021-22
£000 £000
Creditors - Amounts due within oneyear 54
64
UHDB 124
261
Total Creditors 178
325

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13. Contingent Asset

The Charity acknowledges potential receipt of legacies at the point the Charity has been informed of these by Solicitors and a legacy notification service. At the year end, the probable receipt in respect of outstanding legacy income is £218k (£242k), however the maximum notified income could be as high as £826k (2022: £928k). The Charity has accrued £15k (2022: £15k) therefore recognises that there is a possible contingent asset of £812k (2022: £913k).

14. Donated Items

During 2022-23 several donated goods were received by the Charity, however as these cannot be reliably measured, they have not been recognised in the financial statements.

15. Commitments

Of the total balance on 31 March 2023, the Charity has £2.068m (£1.389m in 2021-22) that it has designated and committed (not provided for as a liability in the accounts).

16. Related Party Transactions

The Charity has a related party relationship with the University of Derby and Burton Hospitals NHS Foundation Trust. The Trust holds the employment contracts for all Charity staff and provides the Charity with office accommodation, legal services and is the responsible Corporate Trustee for the Charity.

The stakeholders in the Charity are the Patients, Board Members, Governors, and staff of the Trust. Patients and Staff of the Trust are the beneficiaries of the Charity’s goodwill. Board Members, Governors and Staff of the Trust influence the decisions of the Charity.

Transactions between the Charity and the Trust during the year were mainly in relation to salary payments for its staff and BACS payments of Charity supplier invoices which were initially paid by the Trust and refunded by the Charity to the Trust.

The Charity has also reimbursed revenue and capital payments of £582k (£53k in 2021-22) to the Trust for net payments made on its behalf.

At the end of the financial year £123k (£260k in 2021-22) was owed by the Charity to the Trust.

During the year none of the members of the Corporate Trustee or members of the key management staff or parties related to them has undertaken any material transactions with the Charity.

17. Endowment Funds

The Wilfred Noble Endowment was left to the Charity to generate investment income which is used to provide extra comforts for patients upon their discharge from the hospital.

2022-23 2021-22
£000 £000
Balance Brought forward (359) (338)
Gains & Losses 21
(21)
Balance Carried Forward (338) (359)

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18. Restricted Funds

The restricted funds held by the Charity are as follows: -

2022-23 2021-22
£000 £000
Balance brought forward (335) (379)
Income (417) (132)
Expenditure 94
176
Transfers 10
0
Balance carried forward (648) (335)

19. Unrestricted Funds

The Charity has reported material funds as those which hold 5% or more of the overall value of funds. The Nightingale Macmillan Unit (NMU) funds are for the benefit of patients for the purchase of equipment and/or general services directly for patients within palliative care.

Other unrestricted funds are designated funds for purposes in keeping with the principles of the Charity and wishes of the donors. There is a UHDB General Fun, this fund is for general income and expenditure across the five hospitals within the Trust, and not for named purpose.

2022-23 2022-23 2022-23 2022-23 2021-22 2021-22 2021-22 2021-22
UHDB General
Funds		 NMU Funds Other UHDB
Unrestricted
Funds		 Total Funds UHDB General
Funds		 NMU Funds Other UHDB
Unrestricted
Funds		 Total Funds
£000 £000 £000 £000 £000 £000 £000 £000
Balance brought forward 496 1,928 8,906 11,330 399 2,126 8,383 10,908
Income 102 450 1,721 2,273 306 232 1,679 2,217
Expenditure (391) (416) (2,513) (3,320) (209) (430) (1,813) (2,452)
Transfers 0 0 10 10 0 0 0 0
Gains & (Losses) 0 0 (639) (639) 0 0 657 **657 **
Balance carried forward **207 **
**1,962 **
7,485		 **9,654 **
496		 1,928 8,906 11,330

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20. Reconciliation of Net (Income) Expenditure to Net Cash Flows from Operating Activities

2022-23 2021-22
£000 £000
Net(Income) / Expenditure (1,383) 400
Less InvestingActivities (401) (395)
Increase/(Decrease) in Operational Creditors (149) 114
(Increase)/ in Stock (3) (5)
(Increase)/Decrease in Operational Debtors (8) 42
Net(Gains)/Losses on Investments 660
(678)
Cash (In)/Out Flow from Operating
Activities		 (1,284) (522)
2022-23 2021-22
£000 £000
Income from Investments 401 395
Funds reinvested 0 (13)
Cash (In)/Out Flow from Investing
Activities		 401
382

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Accounting Policies

The Charity is required to compile its accounts in accordance with the Statement of Recommended Practice (SORP) 2019 based on FRS102. These accounts have been prepared using the Going Concern convention. These accounts have been prepared using the historical cost convention by the revaluation of property plant and equipment. The accounting policies have been applied consistently.

Accounting Convention

The financial statements are prepared in accordance with Charity Law. The Charity is considered a Going Concern. The accounting policies of the Charity have been written with due consideration to FRS 102 in accordance with the Charity Commission SORP 2019.

Where no specific guidance is provided as part of the SORP, then due consideration has been given to relevant accounting standards, further guidance and generally accepted practice when developing a policy for the Charity.

The following accounting policies have been consistently applied to the Charity accounts. The accounting policies are approved by the Charitable Funds Committee preceding the year to which they relate. An update report is then presented to the Committee for any changes during the year.

Where there is a change in accounting policy, from one reportable period to the next, the nature, circumstances and effect of that change is disclosed in the Notes to the Accounts. Where appropriate, previous years' financial statements will be restated in line with the new accounting policy.

Where a prior period adjustment takes place, the circumstances, nature, and effect of the change will be disclosed in the notes to the accounts. Any restated information within the Statements and Notes will be presented as “Restated.”

Income Recognition

All incoming resources are recognised on an accruals basis and are included in full in the Statement of Financial Activities as soon as the following three criteria have been met:

The main sources of funding for the Charity are:

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Where the Charity receives material Gifts or Donations in Kind, these are recorded on the Benefits in Kind register. Where appropriate Gifts of Donations in Kind will be reported in the Notes to the Accounts.

Incoming resources from the endowment fund are unrestricted. Income reported in the Statement of Financial Activities will be shown gross before any deductions for administration costs or other costs.

Resources Expended

All expenditure is recognised on an accruals basis and are included in full in the Statement of Financial Activities as soon as the following three criteria have been met:

The Cost of Raising Funds includes some staff costs and other administrative costs of operating the Charity. Staff costs such as salaries and pensions are recognised in the period to which they relate. Staff costs apportioned to the Charity are based on a percentage of time working for the Charity.

Where appropriate a proportion of other staff employed by the Trust is also included where time has been spent assisting in generating charitable income.

Charitable Activities include some staff costs and payments made from individual funds in the achievement of the Charity’s objectives. These costs are directly charged to the fund to which they relate. Staff costs such as salaries and pensions are recognised in the period to which they relate. Staff costs apportioned to the Charity are based on a percentage of time working for the Charity.

Other costs include advertising, marketing and fundraising costs, audit fees, banking, and legal charges.

Provisions

Where recognised expenditure is due for payment more than 12 months from the balance sheet date (such as in the award of an on-going grant), a provision will be created in the Balance Sheet.

A discount rate equivalent to a high-quality corporate bond will be used to discount the provision over the period it is expected to relate.

Discounting will be unwound each year and recognised in the Statement of Financial Activities. At such time that payment is expected within 12 months of the Balance Sheet date, the provision shall be fully unwound and reported on the Balance Sheet within Creditors.

Fixed Assets

The Charity does not hold any fixed assets directly for the purpose of the Charity, this includes intangible fixed assets.

The expenditure by the Charity, which is capital in nature, is deemed to be on behalf of UHDB. The Trust will recognise and account for any resultant Fixed Asset.

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Structure of Funds

The Charity recognises funds in two categories: -

The Trustees can agree to earmark unrestricted funds for set purposes, typically with due regard to the wishes of the donor. Any funds which are not earmarked for a specific purpose are classified as for general purposes. At the point that the general-purpose funds reach an appropriate level, the Trustee may agree to transfer balances into earmarked funds, after receipt and approval of bids from within the Trust.

Fund classification, balance and purpose is reviewed and approved by the Charitable Funds Committee at least annually. Transfers between funds, including closing funds, should be approved by the Corporate Trustee following Charitable Funds Committee recommendation.

Investments

The Charity may invest surplus cash to generate investment income. All investment plans should be approved by the Charitable Funds Committee and reported to the Corporate Trustee at least annually.

The day-to-day management of investments is undertaken by a third-party investment management company. The contract for the management of the Charity’s investments is retendered at least every three years.

Investment fixed assets are recognised in the Balance Sheet in terms of market value. Property investments are revalued by the third-party investment management company annually.

The Charity investments are held in a multi asset and cash fund by the investment managers and the total portfolio amount is included in the balance sheet.

Gains and Losses

Gains and losses occur due to changes in the value of the Charity’s investments, including endowments. All gains and losses are taken to the Statement of Financial Activities in the period to which they relate.

Realised gains and losses on investments are calculated as the difference between sales proceeds and the opening market value.

Unrealised gains and losses are calculated as the difference between market value at the year end and the opening market value.

Pension Contributions

Pension costs are recorded in the Charity accounts on an accrual basis. Employer pensions contributions payable to the NHS Superannuation and other schemes are charged to the Statement of Financial Activities in the period to which they relate.

Due to immateriality, adjustments to reflect the true cost of pension liabilities (in accordance with IAS19) for Charity employees are included within the Trust accounts.

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Reserves Policy

This policy sets out the circumstances and limitations for holding reserves by Derby and Burton Hospitals Charity (the Charity) as required by the Charity Commission Statement of Recommended Practice (SORP) 2019.

Charity Reserves as defined under SORP 2019 are those funds which become available to the Charity to be spent at the Trustee's discretion in furtherance of the Charity’s objectives, but which are not yet spent or committed or could only be realised through the disposal of fixed assets. These are therefore classified as ‘free.’

The Trustee is under the legal duty to apply for charity funds within a reasonable time of receiving them. This policy aims to set out: -

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

The Charity will aim to spend at least 33% of the opening balance on Unrestricted - Designated funds within the financial year. This is monitored during the year by the Charitable Funds Committee.

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

Generally available reserves shall maintain a minimum balance sufficient to continue the day-to-day operations and governance arrangements of the Charity for one year.

Where the generally available reserves are below the minimum balance, the Charitable Funds Committee shall consider alternative funding sources focusing on the day-to-day operations and governance arrangements of the Charity.

If it becomes apparent that the Charity is no longer a going concern, the Corporate Trustee may begin proceedings to wind up the Charity or alter its structure accordingly. A generally available reserve balance of one year for day-to-day operations and governance arrangements is sufficient to facilitate this process.

Where the generally available reserves are excessive, the Charitable Funds Committee shall consider bids from within the Trust to best utilise the resources.

VAT Policy

This policy should be read in conjunction with the VAT policy for UHDB NHS Foundation Trust.

The Charity is entitled to certain tax exemptions on the purchase of medical equipment and is also able to recover VAT on certain other items of expenditure.

The Charity does not hold an independent VAT registration, however, is included within the registration for UHDB NHS Foundation Trust.

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It is the policy of the Charity to recover all VAT possible. The Trust contracts specialist NHS VAT advisors to assist in the accurate recovery of VAT.

The Charity should operate within the VAT policy of the Trust.

Stock Policy

Stocks are valued at the lower of cost and net realisable value. Cost is determined on either a first in first out or weighted average basis.

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Glossary

Accounting Policy

These outline how the Charity treats events or transactions during a financial year within the Financial Statements.

Balance Sheet

The balance sheet provides a true and fair view of the Charity’s assets and liabilities and how these are represented by the different classes of funds held by the Charity. The objective of the balance sheet is to show the resources available to the Charity and whether these are available for all purposes of the Charity or must be used for specific purposes because of legal restrictions placed on their use.

Cash

Amounts held in the bank account of the Charity or in cash holdings.

Cash Equivalents

Investments which can be converted to cash quickly (within 3 months).

Statement of Cashflow

This is a financial statement that shows how changes in balance sheet accounts and income affect cash and cash equivalents, and breaks the analysis down to operating, investing, and financing activities. Essentially, the cash flow statement is concerned with the flow of cash in and out of the Charity.

Commitments

Agreed amounts of expenditure which at the balance sheet date have not yet been ordered.

Contingent Asset

Possible amounts due to the Charity at the balance sheet date. These are circumstances where there has been an event causing an amount owing to the Charity, however the Charity could not reliably estimate the value of the amount owing.

Corporate Trustee

The Trustee of a charity are those who are responsible for its governance. In the case of the Charity, that is the Corporate Trustee.

Creditors

Amounts due to be paid by the Charity as at the balance sheet date.

Debtors

Amounts owed to the Charity as at the balance sheet date.

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Endowment

A financial endowment is a donation of money or property to a non-profit organisation for the ongoing support of that organisation. Usually, the endowment is structured so that the principal amount is kept intact while the investment income is available for use, or part of the principal is released each year, which allows for the donation to have an impact over a longer period than if it were spent all at once. An endowment may come with stipulations regarding its usage.

Fixed Assets

These are the long-term assets of the Charity which assist in the delivery of its objectives such as land, building, software, and equipment.

Gains

An increase in the value of the Charity's financial assets.

Incoming Resources

Income due to or received by the Charity. This includes donations, investment income and sales of goods or services.

Investments

Surplus cash amounts which have been used to purchase stocks and shares with the purpose of generating additional cash return to the Charity.

Notes to the Accounts

The Notes to the Accounts provide the reader with additional information to help understand the true financial position of the Charity.

Prior Year Accounts

The financial performance for the year prior to that reported is included in the Annual Report and Accounts to allow the reader of the accounts to make a fair assessment of the ongoing financial performance of the Charity.

Provisions

Amounts set aside by the Charity to finance an event which has taken place for which the Charity is not certain of the exact financial cost. Typically, this would be because of an ongoing legal case.

Related Party

An individual or entity which is not deemed to be wholly separate from the Charity. This would encompass the Corporate Trustee or any donor who the Charity is reliant upon for the normal operations of the charity to continue.

Remuneration

The amount paid to or on behalf of a person working on behalf of the Charity in exchange for services provided.

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Restricted Funds

Charitable donations where their use is bound by legal restriction.

Statement of Financial Activities

This is a financial report detailing the change in the Charity’s net assets during the financial year. It provides an analysis of the income and endowment funds received and the expenditure by the Charity on its activities and presents a reconciliation of the movements in a charity’s funds for the reporting period. In the accounts of a company, this would be referred to as a Profit and Loss account.

Stock

Stock is valued at the lower of cost and net realisable value. Cost is determined on either a first in, first out or weighted average basis.

Unrestricted Funds

Charitable donations which are available to the Charity to use for any purpose which furthers its objectives. Donors typically request areas to which they would like the donation made, however there is no legal requirement to comply with this.

Value Added Tax (VAT)

This is a national tax on goods and services. The Charity is subject to some VAT relief which reduces the cost of delivering its objectives.

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How To Contact The Charity For Further Information

By Post

Derby and Burton Hospitals Charity Royal Derby Hospital Uttoxeter Road Derby DE22 3NE

By Phone

01332 785731 – General Enquiries 01332 788861 – Events and Fundraising 01332 785828 – Finance

Our office opening hours are Monday – Friday, 9am – 5pm (excludes bank holidays)

If you would like any part of this document translated into your own language, or require a version in large print, please contact us as above.

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