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2022-12-31-accounts

The Benenden Hospital Trust

(A Company Limited by Guarantee) Annual Report and Financial Statements Year ended 31 December 2022

Registered Number: 03454120

Charity Number: 1065995

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The Benenden Hospital Trust (A Company Limited by Guarantee)

Registered Number: 03454120 Charity Number: 1065995

Contents

Page(s)

The Board of Governors Annual Report 2022 The Board of Governors Annual Report 2022
• Chair’s Report 3
• Objectives and Activities 4 – 5
• Achievements and Performance 6
• Financial Review 7 – 8
• Future Plans 9
• Reference and Administrative Information 10 – 11
• Structure, Governance and Management 11 – 15
• Governors’ Responsibilities in Relation to the
Financial Statements		 15
• Section 172 Report 16
• Statement as to Disclosure to our Auditor 17
Independent Auditor’s Report 18 – 22
Statement of Financial Activities 23
Balance Sheet 24
Cash Flow Statement 25
Notes to the Financial Statements 26 – 41

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The Benenden Hospital Trust (A Company Limited by Guarantee)

Registered Number: 03454120 Charity Number: 1065995

The Board of Governors Annual Report 2022

The Board of Governors (who are Directors of the Benenden Hospital Trust for the purposes of the Companies Act 2006 and are also Trustees of the Benenden Hospital Trust) present their Annual Report and audited Financial Statements of The Benenden Hospital Trust (“BHT” or “Charitable Company” or “Hospital”) for the year ended 31 December 2022.

The Annual Report and Financial Statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum & Articles of Association, and Accounting & Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

Chair’s Report

Thankfully during 2022 the Hospital saw a return to normal operations following two years of the COVID-19 pandemic and the significant impact that caused. It took longer than anticipated for our Society and NHS referrals to return to pre-pandemic levels but we ended the year with referrals and income back at the level expected.

More patients attended the Hospital for appointments with over 61,000 appointments and 9,300 patient admissions. We were able to further grow our income by 8% and in particular SelfPay income rose by 10% from £8.7m in 2021 to £9.6m in 2022. This was despite the cost of living crisis impacting levels of disposable income. Overall, we ended the year with a deficit of £1,29m, which is acceptable given the inflation and cost of living impacts on our costs. We have a healthy balance sheet and cash position.

During the year we have invested in our systems, implementing a new finance system with new processes and controls plus continuing to upgrade our IT infrastructure.

We continue to value and support the physical and mental wellbeing of our staff and were able to provide most staff with financial support for winter fuel payments. Reflecting all aspects of the employee wellbeing the Hospital holds a “We invest in wellbeing” Silver award.

For the first time in three years we were able to have Best of Benenden Awards Ceremony in person, where we recognised and celebrated the outstanding contributions our staff make to the Hospital. These peer-nominated awards recognise excellence and innovation and honour the efforts of individuals and teams who embody the organisation’s values and behaviours and those who make a significant positive impact at the Hospital.

Looking forward we continue to focus on how we can best help our Society members and patients, support our Hospital staff and develop our commercial strategy looking for opportunities to broaden the services we offer and collaborate with our Society colleagues.

Last but not least I would like to thank all of the Hospital staff for their continued dedication, contribution and professionalism enabling the Hospital to provide a welcoming environment and excellent care for our patients.

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The Benenden Hospital Trust (A Company Limited by Guarantee)

Registered Number: 03454120 Charity Number: 1065995

The Board of Governors Annual Report 2022

Objectives and Activities

About Benenden Hospital Trust Limited

The principal objectives and activities of BHT are governed by its Articles of Association. The principal objective of the Trust is ‘the relief of hardship caused by sickness, infirmity, disability or any medical condition in particular by the provision of surgical and medical treatment, nursing care and otherwise to the members of The Benenden Healthcare Society Limited (“Society”), their nominees and, if the Governors think fit, to other persons in need’.

In setting BHT’s objectives and planning its activities the Governors have considered the Charity Commission's general guidance on public benefit.

Our Strategic Objectives

BHT’s strategic objectives, which are underpinned by its values and mission are:

Our Activities

BHT is one of the main providers of surgical and medical treatment to members and nominees of the Society, which provides low cost health care to its members with membership open to all. In addition, services are provided to patients funding their own treatment directly as SelfPay, or through Private Medical Insurance cover. BHT is also an accredited NHS Provider with NHS patient referrals accepted for a range of specialties with local Clinical Commissioning Group (CCG) contracts in place.

BHT measures the success of its activities both in terms of financial performance and in terms of the number of patients treated during the year. An overview of the Hospital’s Achievements and Performance is set out on page 6.

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The Benenden Hospital Trust (A Company Limited by Guarantee)

Registered Number: 03454120 Charity Number: 1065995

The Board of Governors Annual Report 2022

Our Values

The Hospital’s values determine the way that BHT acts at all times. Those values are:

Our People

BHT places considerable value on the engagement and full involvement of its employees and continually keeps them informed on matters affecting them. This is achieved through formal and informal meetings, a fortnightly internal newsletter (Connect), presentation of the Annual Operational Plan to all staff, and the Hospital intranet.

BHT prides itself in providing equal opportunities to all and welcomes applications from a diverse range of applicants, including those with disabilities. In the event of members of staff becoming disabled every effort is made to ensure that their employment with the Charitable Company continues and that appropriate training is arranged. It is the policy of the Charitable Company that the training, career development and promotion of all individuals is equal, as far as is possible.

BHT also values the opportunity to work in partnership with our consultant colleagues who support the hospital through engagement in the Medical Advisory Committee, specialty reviews and service development initiatives as well as providing high quality care to our patients.

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The Benenden Hospital Trust (A Company Limited by Guarantee)

Registered Number: 03454120 Charity Number: 1065995

The Board of Governors Annual Report 2022

Achievements and Performance

Performance

With all domestic legal restrictions in respect of COVID-19 ending in February 2022, activity levels continued to grow throughout the year as patients’ confidence to attend for hospital appointments returned to normal:

2022 2021 Growth
Number Number %
Referrals 29,872 26,579 +12.4%
Appointments 61,616 58,075 +6.1%
Admissions 9,351 8,948 +4.5%

The growth in activity levels was driven by a steady improvement in referrals from Society and particularly the NHS towards pre-COVID-19 pandemic levels and continued growth in Self-Pay income driven by the record high levels of patient backlog in the NHS causing more patients than ever to choose to Self-Pay.

Income from charitable activities can be analysed by channel as follows:

Income from:
Society
NHS
Self-Pay
Private Medical Insurance
Total income from charitable
activities		 2022
£’000
2021
£’000
Growth
%
25,474
24,160
+5.4%
5,813
4,431
+31.2%
9,638
8,728
+10.4%
570
611
-6.7%
41,495
37,930
+9.4%

Evolution of Clinical Services

The Hospital’s Plastic Surgery specialty was expanded in April 2022 with the appointment of an additional consultant. This has allowed the Hospital to provide a greater range of Cosmetic procedures than previously. The specialty is being further developed in 2023 with the appointment of a specialist nurse and the target to on board a further two consultants, allowing a seamless pathway for Bariatric patients to continue their weight loss journey.

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The Benenden Hospital Trust (A Company Limited by Guarantee)

Registered Number: 03454120 Charity Number: 1065995

The Board of Governors Annual Report 2022

Financial Review

Despite a net deficit position in each of the last two years, given the impact that COVID-19 had throughout that period, In the opinion of the Governors the overall level of activity and financial position of the Charitable Company remains satisfactory.

The Charitable Company's income for the year from all sources was £43,082k (2021: £39,946k) and within this total income are legacies received during the year amounting to £418k (2021: £53k). The Charitable Company's total expenditure for the year was £44,371k (2021: £40,351k). For the year, there was a net deficit of £1,289k (2021 £405k). The net asset position at the 31 December 2022 was £15,252k (2021: £16,541k).

The Charitable Company's principal source of Income is from clinical services and treatment provided to Society members, private patients and NHS patients. In addition, BHT received voluntary donations of £852k (2021: £1,640k) from the Society as a contribution to support capital investment. The Charitable Company's Statement of Financial Activities for the year is set out on page 23.

Reserves Policy

As at 31 December 2022, BHT held £5.1m (2021: £5.2m) in free reserves (net assets excluding fixed assets and restricted funds). Although it is not required to do so by the Charities Commission these reserves are to cover the working capital requirement for at least one month.

BHT has a target Reserves Policy equivalent to 3.0 x monthly running costs (all hospital costs excluding directly variable costs). At 31 December 2022 the level of Reserves was equivalent to 2.3 x monthly running costs (2021: 2.6 x). The ratio was negatively impacted by the Hospital’s net deficit in the year and the high levels of cost inflation experienced in 2022.

The current ratio (current assets: current liabilities) target of 2.0 was exceeded at 31 December 2022 with a ratio of 2.4 (2021: 2.8).

Going Concern

The Governors are required to assess the ability of BHT to continue as a going concern as part of the annual accounts production process (detailed information is provided in the going concern note within the Statement of Accounting Policies).

The Governors have considered, in detail, the forecasted financial position to the end of 2024, this being at least 12 months from the date of signing of the financial statements and based on the actual performance to 28 February 2023. The assessment has been made on a prudent view and this shows that cash levels are expected to remain above the monthly minimum target of £2m throughout this period. The Society has agreed, through a Letter of Comfort, to support the Hospital with a further £5m if required at any point during this period. The Governors are satisfied with the level of support that this letter provides.

In February 2022 the Society made an offer for the transfer of the business and the assets of the Hospital to a subsidiary of the Society. This proposed transaction is not as a result of any financial issues and there is no intention for the business of the hospital to cease at any time in the future.

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The Benenden Hospital Trust (A Company Limited by Guarantee)

Registered Number: 03454120 Charity Number: 1065995

The Board of Governors Annual Report 2022

In July 2022 an application was submitted to the Charity Commission requesting approval for the proposed transaction. As at the date of signing the accounts a response has not yet been received from the Charity Commission.

In addition to Charity Commission approval, the proposed transaction is also subject to approval by the Members of The Benenden Hospital Trust, as well as completion of other necessary regulatory and legal steps. It is uncertain how long the process of obtaining Charity Commission approval, Members approval and regulatory consent will take, and therefore both whether a transaction will occur, and the timing of any transaction, are uncertain.

Having considered the uncertainties, future financial projections and the funding provided by the Society to support the financial operations, the Governors have determined that it remains appropriate to adopt the going concern basis in preparing the financial statements.

However, given the proposed transaction with the Society to transfer the assets to another entity, the Governors consider that there is a material uncertainty that may cast significant doubt over BHT’s ability to continue as a going concern and therefore it may be unable to continue in its current form. The financial statements do not include the adjustments that would result if the company was unable to continue as a going concern.

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The Benenden Hospital Trust (A Company Limited by Guarantee)

Registered Number: 03454120 Charity Number: 1065995

The Board of Governors Annual Report 2022

Future Plans

Vision

The vision of BHT is to be the South East’s leading private hospital, renowned for excellence.

Strategy

The Hospital’s 5-year plan for 2023 to 2028 is based on four key strategic imperatives:

Excellence

Our workforce plan will ensure that the Hospital has the resources and skills to continue to deliver outstanding patient care through all stages of the patient pathway. We will commence a capital renewal programme in 2024 to ensure that our facilities remain up to date in the future.

Growth

The commercial strategy implemented in 2021 and 2022 has built the foundations for the Hospital to continue to grow its private income. We will continue to develop existing services and add new ones, for example in Plastic/Cometic surgery, and we will work closely with Private Medical Insurers to better serve their customers.

It has been proposed by the Society that those Society members in what is known as the “outer catchment area” will no longer be required to use the Hospital for treatment and can instead be referred to a local hospital. This could reduce Society income by approximately £2m in 2024. The growth objectives will ensure that the Hospital is able to develop new income streams to replace the lost income.

Capability and Efficiency

We will continue to invest in systems and processes that improve the Hospital’s efficiency and ensure that the Charitable Company’s money is spent wisely. This will include development of the “digital hospital” which will allow BHT to treat more patients remotely and increase patients access to the Hospital’s services.

Sustainability

BHT is committed to working towards a sustainable future, not only environmentally but also socially and from a governance perspective. The first stage of this will be to undertake an exercise to establish the Hospital’s carbon footprint. This will be completed in 2023.

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The Benenden Hospital Trust (A Company Limited by Guarantee)

Registered Number: 03454120 Charity Number: 1065995

The Board of Governors Annual Report 2022

Reference and Administrative Information

The Board of Governors

Nominated Governors (Trustees)

Appointed Governors (Trustees)

Hospital Executive

External Auditors

Deloitte LLP

Handover Building, Corporation St, Manchester M4 4AH.

Internal Auditors

RSM Risk Assurance Services LLP

5[th] Floor, Central Square, 29 Wellington Street, Leeds, LS1 4DL

Bankers

National Westminster Bank PLC

South Essex Commercial Office, 3[rd] Floor Phoenix Place, Christopher Martin Road, Basildon, SS14 3GQ

Solicitors

Brachers LLP

Somerfield House, 59 London Road, Maidstone, ME16 8JH

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The Benenden Hospital Trust (A Company Limited by Guarantee)

Registered Number: 03454120 Charity Number: 1065995

The Board of Governors Annual Report 2022

Registered Office & Business Address

The Benenden Hospital Trust Goddard’s Green Road, Benenden, Cranbrook, TN17 4AX

Telephone: 01580 230661

Website: www.benendenhospital.org.uk

Registered number: 3454120

Charity number: 1065995

Structure, Governance and Management

Structure

BHT was incorporated in the United Kingdom on 23 October 1997 (company number 3454120) and was registered as a Charitable Company by the Charity Commissioners on 20 November 1997 (registered number 1065995). The Articles of Association, as amended by a special resolution dated 27 February 2014, govern the Charitable Company.

On the 1 July 2003 BHT became a controlled body of The Benenden Healthcare Society Limited which is an incorporated Friendly Society, registered under the Friendly Societies Act 1992 (registered number 480F). Transactions with related parties are set out in note 20 to the Financial Statements.

Appointment of Governors

The Governors are appointed in accordance with the Charitable Company's Articles of Association. The number of the Governors should not be less than three but is not subject to any maximum. Appointments are normally reviewed every two years and Governors are either re-appointed or replaced with new appointments. In line with the Society’s own articles, aligned with its regulator as a Friendly Society, the Society shall appoint the majority of the Governors and may remove or replace any person it appoints.

BHT may also, by ordinary resolution, appoint a person(s) who is willing to act to be a Governor either to fill a vacancy or as an additional Governor providing that there is always the majority of Nominated Governors on the Board. No person shall be appointed or re-appointed a Governor at any general meeting unless they are recommended by the Governors.

New appointees undergo an induction programme to BHT and together with existing Governors periodically undertake a training course to understand the duties and responsibilities of Governors.

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The Benenden Hospital Trust (A Company Limited by Guarantee)

Registered Number: 03454120 Charity Number: 1065995

The Board of Governors Annual Report 2022

Hospital Audit Committee

The Governors have an established Audit Committee. This is a sub-committee of the Board and is responsible for ensuring effective systems of internal control, inspection and reporting are maintained, including compliance testing to safeguard the assets of the Charitable Company. Additionally, the Audit Committee is responsible for ensuring that the Charitable Company’s affairs comply with the Companies Act 2006 and the Charities Statement of Recommended Practice (FRS102).

The Audit Committee receives reports from an independent internal auditor, RSM Risk Assurance Services LLP, who reviews key systems and potential risks based on a programme of need determined by the Audit Committee in conjunction with the auditor. Minutes of the Audit Committee are submitted to the Governors and a summary report is presented to the Group Audit Committee of the Society. The Audit Committee also meets with the external auditor and receives a management report following their audit.

The current members of the Audit Committee are: Governors, Mr A Pilgrim (Chair), Mrs P Clark and Mr P Rich.

Remuneration & Nominations Committees

The Governors have an established Remuneration Committee and a Nominations Committee. The Remuneration Committee reviews the annual pay award to staff with a recommendation made to the Governors, which approves the pay award. It also sets the remuneration to attract the right calibre of individuals to senior positions. The Nominations Committee considers the knowledge and skills requirements of the Governors whilst ensuring the organisation is fit for purpose to meet the workforce needs of the future.

The current members of the Remuneration Committee and the Nominations Committee are: Governors, Ms A Hays (Chair), Mrs P Clark and Mrs K Horsford.

Clinical Governance

The Charitable Company has effective governance systems in place which oversee all components of risk management, including patient safety, infection control, complaints, claims, patient information and internal and external regulation.

On a quarterly basis, a multi-disciplinary Quality & Safety Committee, with responsibility for all risk components, reviews all governance issues including reports on Occupational Health, Health and Safety, Patient Safety, Infection Control, Resuscitation and Clinical Audit.

The Quality & Safety Committee is attended by Mrs P Clark as well as other Governors on an ad hoc basis.

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The Benenden Hospital Trust (A Company Limited by Guarantee)

Registered Number: 03454120 Charity Number: 1065995

The Board of Governors Annual Report 2022

Risk Management

The Governors have an established Risk Management Framework which, supported by a Board Assurance Framework and the High-Level Risk Register, aims to enhance the quality of services offered to patients. BHT recognises the need for robust systems and processes to support continuous risk management, enabling members of staff to integrate risk management into their daily activities and support better decision making through a good understanding of risks and their likely impact.

BHT recognises that positive and managed risk-taking is essential for control of growth, development, and innovation. The Governors have set out in its risk management policy, its risk appetite and has adopted a formal risk matrix to allow risks to be fully understood and evaluated against that risk appetite. The following are considered the principal risks:

Risk Mitigation
Catchment Area Changes
Proposed changes to the
Hospital’s outer catchment area
for Society Members could
impact income		 Under the growth objective of the Hospital’s strategy,
detailed plans have been put in place to develop
alternative income streams to compensate for any
income that could be lost with the catchment
changes.
Quality of Care
Failure to meet regulatory
guidance could compromise
the quality of care and
treatment offered by BHT, and
could lead to suspension of
regulated activity and financial
penalties		 To mitigate this risk, a robust internal governance and
assurance framework is maintained, demonstrating
adherence with the necessary quality and safety
standards. Prominence is placed on continuous
improvement, providing the best possible patient care
in the right way, by the right people, in the right place
and at the right time.
Workforce
National shortage of clinically
trained staff and an ageing
workforce at BHT, could lead to
a reduction in capacity or
required skills to manage
demand.		 Appropriate succession plans and other initiatives
designed to support and mitigate against an ageing
workforce are in place or being developed to provide
a workforce fit for purpose to future proof the Hospital
for the years ahead.
Cyber Security
Cyber security risk is increasing,
driven by global connectivity
and use of cloud services. Cyber
threats can come from any level
in the organisation and could
result in data theft/loss or
corruption, leading to financial
breaches, reputational damage
or disruption to services.		 As BHT moves from fully on site, ringfenced IT systems to
use of cloud-based solutions the Governors have
recognised the need to significantly increase its cyber
security cover. Investment has been made throughout
2022 as part of an established IT plan in conjunction
with the Society to ensure much greater control and
scrutiny over cyber risk.
Regular penetration testing and phishing exercises are
carried out. BHT holds Cyber Essentials Plus
accreditation.

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The Benenden Hospital Trust (A Company Limited by Guarantee)

Registered Number: 03454120 Charity Number: 1065995

The Board of Governors Annual Report 2022

Business Continuity
Due to the ongoing effects of
Brexit and the war in Ukraine,
there is a risk that a supply chain
failure could cause disruption to
BHT with regards to, purchasing
medical consumables,
increasing costs for the
organisation or inability to
complete procedures		 BHT now purchase many key theatre items from NHS
Supply Chain as there is more confidence in their
continuity of supply. Where possible, higher levels of
stock are in place for key items.
Incident reporting and monthly monitoring is in place to
ensure current risks are understood and reported to
management.

The following risks that were reported in 2021 are no longer considered to be a principal risk for the hospital:

Management

The strategy of the Charitable Company is set by the Governors and implemented by the Hospital Executive. The Strategic Report, as required by the Companies Act, is included in this Governor’s Report. The Governors met formally on a total of 5 occasions during 2022 (2021 : 5). The Governors approved the strategies and major policies related to the running of the Charitable Company, including the Standing Financial Instructions and the budget for the year ending 31 December 2023.

The Governors monitor performance in all key areas through several key performance indicators and receive regular reports on Activity, Finance, Complaints, Risk Management, Governance, and Health & Safety from the Hospital Executive.

Attendance at Meetings

The record of attendance at Board and major Board Committee Meetings during the year ended 31 December 2022 is stated in the table below:

Board Board Audit Committee Audit Committee Rem & Nom
Committee		 Rem & Nom
Committee
Called to Attended Called to Attended Called to Attended
Angela Hays 5 5 - - 2 2
Bob Andrews 5 5 - - - -
Paula Clark 5 5 4 4 2 2
Kim Horsford 5 3 - - 2 2
Adrian Humphreys 4 4 - - - -
Alan Pilgrim 5 4 4 4 - -
Paul Rich 5 4 4 4 - -

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The Benenden Hospital Trust (A Company Limited by Guarantee)

Registered Number: 03454120 Charity Number: 1065995

The Board of Governors Annual Report 2022

Insurance of Governors

The Hospital maintains insurance for the Governors in respect of their duties as directors and Governors.

Taxation

The Benenden Hospital Trust is a charity within the meaning of Para 1 Schedule 6 Finance Act 2010, Accordingly, the Charitable Company is exempt from taxation in respect of income or capital gains within categories covered by Chapter 3 of Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes. No tax charge arose in the current financial year (2021: £nil).

Governors’ Responsibilities in Relation to the Financial Statements

The Governors (who are also Directors of the Benenden Hospital Trust for the purposes of company law and are also Trustees of the Benenden Hospital Trust) are responsible for preparing a Governor’s annual report and financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”.

Company law requires the Governors to prepare financial statements for each year which give a true and fair view of the state of affairs of the Charitable Company and of the incoming resources and application of resources, including the income and expenditure, of the Charitable Company for that period. In preparing the financial statements, the Governors are required to:

The Governors are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the Charitable Company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Charitable Company and hence taking reasonable steps for the prevention and detection of fraud and other irregularities.

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

15

The Benenden Hospital Trust (A Company Limited by Guarantee)

Registered Number: 03454120 Charity Number: 1065995

The Board of Governors Annual Report 2022

Section 172 Report

The Governors recognise the best practice outlined in section 172 of the Companies Act 2006 to act in the way which they consider, in good faith, would be most likely to promote the success of the Hospital for the benefit of its stakeholders. In doing so, they will have regard to:

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The Benenden Hospital Trust (A Company Limited by Guarantee)

Registered Number: 03454120 Charity Number: 1065995

The Board of Governors Annual Report 2022

Statement as to Disclosure to our Auditor

In so far as the Governors are aware at the time of approving our Governors’ Annual Report:

By order of the Board of Governors

Ms Angela Hays

Chair of the Board of Governors of the Benenden Hospital Trust

3 May 2023

17

The Benenden Hospital Trust (A Company Limited by Guarantee)

Registered Number: 03454120 Charity Number: 1065995

Independent Auditor’s Report to the Members of The Benenden Hospital Trust

Report on the audit of the Financial Statements

Opinion

In our opinion the financial statements of The Benenden Hospital Trust (the ‘charitable company’):

We have audited the financial statements which comprise:

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).

Basis of 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 charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the Financial Reporting Council’s (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.

18

The Benenden Hospital Trust (A Company Limited by Guarantee)

Registered Number: 03454120 Charity Number: 1065995

Independent Auditor’s Report to the Members of The Benenden Hospital Trust

Material uncertainty relating to going concern

We draw attention to note 1(b) in the financial statements, which indicates that the Governors are currently planning for a transaction with the Benenden Healthcare Society for the sale of the trading assets and liabilities of the charitable company to a subsidiary of the Society. The transaction is subject to approval by the Members of the charitable company and by the Charity Commission, as well as completion of legal and regulatory procedures. As stated in note 1(b), these events or conditions, along with the other matters as set forth in note 1, indicate that a material uncertainty exists that may cast significant doubt on the charitable company’s ability to continue as a going concern. Our opinion is not modified in respect of this matter.

In auditing the financial statements, we have concluded that the Governors’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

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

Other information

The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The Governors are responsible for the other information contained within the annual report. 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.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. 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.

Responsibilities of Governors

As explained more fully in the Governors’ responsibilities statement, the Governors (who are also the directors of the charitable company for the purpose of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Governors are responsible for assessing the charitable company’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

19

The Benenden Hospital Trust (A Company Limited by Guarantee)

Registered Number: 03454120 Charity Number: 1065995

Independent Auditor’s Report to the Members of The Benenden Hospital Trust

Governors either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

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

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

Extent to which the audit was considered capable of detecting irregularities, including fraud

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.

We considered the nature of the charitable company’s industry and its control environment, and reviewed the charitable company’s documentation of their policies and procedures relating to fraud and compliance with laws and regulations. We also enquired of management and Governors about their own identification and assessment of the risks of irregularities, including those that are specific to the charitable company’s business sector.

We obtained an understanding of the legal and regulatory framework that the charitable company operates in, and identified the key laws and regulations that:

We discussed among the audit engagement team including relevant internal specialists such as IT, and industry specialists regarding the opportunities and incentives that may exist within the organisation for fraud and how and where fraud might occur in the financial statements.

20

The Benenden Hospital Trust (A Company Limited by Guarantee)

Registered Number: 03454120 Charity Number: 1065995

Independent Auditor’s Report to the Members of The Benenden Hospital Trust

In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments; assessed whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business.

In addition to the above, our procedures to respond to the risks identified included the following:

• reviewing financial statement disclosures by testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;

• performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;

Report on other legal and regulatory requirements

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified any material misstatements in the strategic report or the directors’ report included within the Governors’ report.

21

The Benenden Hospital Trust (A Company Limited by Guarantee)

Registered Number: 03454120 Charity Number: 1065995

Independent Auditor’s Report to the Members of The Benenden Hospital Trust

Matters on which we are required to report by exception

Under the Companies Act 2006 we are required to report in respect of the following matters if, in our opinion:

We have nothing to report in respect of these matters.

Use of our Report

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members 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 charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

David Heaton FCA (Senior statutory auditor) For and on behalf of Deloitte LLP Statutory Auditor Manchester, United Kingdom

3 May 2023

22

The Benenden Hospital Trust (A Company Limited by Guarantee)

Registered Number: 03454120 Charity Number: 1065995

Statement of Financial Activities For the year ended 31 December 2022

Restricted Unrestricted Total Total
Funds Funds Funds Funds
Note 2022
£’000		 2022
£’000		 2022
£’000		 2021
£’000
Income & Endowments from
Donations and Legacies 3 - 1,275 1,275 1,733
Income from Charitable Activities - 41,495 41,495 37,930
Other Trading Activities - 302 302 283
Income from Investments - 10 10 -
Total Income - 43,082 43,082 39,946
Expenditure on Charitable
Activities 4 - (44,371) (44,371) (40,351)
Net (Expenditure) & Net
movement in funds for the year 6 - (1,289) (1,289) (405)
Reconciliation of Funds
Total Funds Brought Forward 59 16,482 16,541 16,946
Total Funds Carried Forward 13,14 59 15,193 15,252 16,541

All activities continue to relate to continuing operations.

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

Total funds for 2022 includes £59k of restricted funds under Reconciliation of Funds.

The notes on pages 26 to 41 form part of the financial statements.

23

The Benenden Hospital Trust (A Company Limited by Guarantee)

Registered Number: 03454120 Charity Number: 1065995

Balance Sheet

As at 31 December 2022

Note
Fixed Assets
Tangible Assets
8
Intangible Assets
9
Current Assets
Stock
10
Debtors
11
Cash at Bank & in Hand
17
Total Current Assets
Creditors
Amounts Falling Due Within One Year
12
Net Current Assets
Net Assets
14
The Funds of the Charity
Restricted Funds
13
Unrestricted Funds
13
Total Charity Funds		 2022
£’000
2021
£’000
8,580
9,591
1,513
1,720
10,093
11,311
528
662
3,353
3,876
4,961
3,864
8,842
8,402
(3,683)
(3,172)
5,159
5,230
15,252
16,541
59
59
15,193
16,482
15,252
16,541

The Financial Statements were approved by the Governors on 3 May 2023 and signed on its behalf.

Ms Angela Hays

Chair of the Board of Governors of The Benenden Hospital Trust

The notes on pages 26 to 41 form part of these Financial Statements

24

The Benenden Hospital Trust (A Company Limited by Guarantee)

Registered Number: 03454120 Charity Number: 1065995

Cash Flow Statement

For the year ended 31 December 2022

Note
Cash from Operating Activities
15
Cash Flows from Investing Activities
Returns on Investments & Servicing of Finance
16
Capital Expenditure
16
Cash used in Investing Activities
Increase in Cash & Cash Equivalents in the Year
Cash & Cash Equivalents at the
Start of the Year
Total Cash & Cash Equivalents at the
End of the Year
17		 2022
£’000
2021
£’000
2,388
3,582
10
-
(1,301)
(1,661)
(1,291)
(1,661)
1,097
1,921
3,864
1,943
4,961
3,864

The notes on pages 26 to 41 form part of these Financial Statements

25

The Benenden Hospital Trust (A Company Limited by Guarantee)

Registered Number: 03454120 Charity Number: 1065995

Notes to the Financial Statements For the year ended 31 December 2022

1 Statement of Accounting Policies

a. Basis of Preparation of Financial Statements

The Financial Statements have been prepared in accordance with the Accounting and Reporting by Charities: Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102 – effective 1 January 2019) and the Companies Act 2006. The Benenden Hospital Trust (“BHT” or “Hospital” or “the Charitable Company”) meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note.

b. Preparation of the Accounts on a Going Concern Basis

The accounting rules require the Governors to assess, as part of the accounts production process, the Hospital’s ability to continue as a going concern.

On an on-going basis BHT monitors performance against the 2023 budget and reviews the outturn position. Performance to date in 2023 is better than budget.

The Governors have considered the latest forecast, based on actuals to 28 February 2023, against the original budgeted/planned position to 31 December 2024. Currently it is not expected that the Hospital will require any further support from the Society but support up to a level of £5m has been agreed if required to enable the Hospital to meet its obligations as they fall due.

In February 2022 the Society have made an offer to the Hospital for the transfer of the trading assets and liabilities of the Hospital to a subsidiary of the Society. In July 2022 an application was submitted to the Charity Commission for the approval of the proposed transaction. At the date of signing the accounts a response has not been received. In addition, the proposed transaction would also be subject to approval by the Members of the Hospital, as well as completion of necessary legal and regulatory steps. Whether a transaction will occur, and its timing, is therefore uncertain.

Having considered the uncertainties, future financial projections and the funding support provided by the Society to support the financial operations, the Governors have a reasonable expectation that the Charitable Company has adequate resources to continue its activities for the foreseeable future. Accordingly, they continue to adopt a going concern basis in preparing the financial statements.

However, given the proposed transaction with the Society to transfer the business and assets to another entity, the Governors consider that there is a material uncertainty that may cast significant doubt over BHT’s ability to continue as a going concern and therefore it may be unable to continue in its current form. The financial statements do not include the adjustments that would result if the company was unable to continue as a going concern.

26

The Benenden Hospital Trust (A Company Limited by Guarantee)

Registered Number: 03454120 Charity Number: 1065995

Notes to the Financial Statements For the year ended 31 December 2022

1 Statement of Accounting Policies

c. Fund Accounting

General funds are unrestricted funds which are available for use at the discretion of the Governors in furtherance of the general objectives of the Charitable Company and which have not been designated for other purposes.

Designated funds comprise unrestricted funds that have been set aside by the Governors for particular purposes. The aim and use of each designated fund are set out in the notes to the financial statements.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Charitable Company for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund are set out in the notes to the financial statements.

d. Income from Charitable Activities

Income is recognised in the period in which the Hospital has entitlement to the income, the amount of income can be measured reliably, and it is probable that the income will be received.

Income generated from patient services in the operation of an independent hospital is recognised to the extent that it is probable that the economic benefits will flow to the Hospital and the revenue can be reliably measured. It is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

e. Donations & Legacies

Donations are recognised when the charity has confirmation of both the amount and settlement date. In the event of donations pledged but not received, the amount is recognised where the receipt is considered probable. In the event that a donation is subject to conditions that require a level of performance before the charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charity and it is probable that those conditions will be fulfilled in the reporting period.

Donations received from the Society in 2022 were used to fund capital expenditure.

Legacies are included in the statement of financial activities when the charity is entitled to the legacy, the executors have established that there are sufficient surplus assets in the estate to pay the legacy, and any conditions attached to the legacy are within the control of the charity.

f. Interest Received

Interest on funds held on deposit is accrued as earned and added to the source fund to ensure appropriate use.

27

The Benenden Hospital Trust (A Company Limited by Guarantee)

Registered Number: 03454120 Charity Number: 1065995

Notes to the Financial Statements For the year ended 31 December 2022

1 Statement of Accounting Policies

g. Income from Other Trading Activities

Income from other trading activities comprises revenue recognised by the Charitable Company in respect of goods and services supplied during the year, exclusive of Value Added Tax and trade discounts.

h. Expenditure on Charitable Activities

All expenditure is accounted for on an accruals basis and has been included under expense categories that aggregate all costs for allocation to activities. Where costs cannot be directly attributed to particular activities, they have been allocated on a basis consistent with the use of the resources. Governance costs are those incurred in connection with administration of the Charitable Company and compliance with constitutional and statutory requirements.

i Pensions

BHT and the Society are participating employers in a pension scheme (“the scheme”) which provides both a defined benefit and a defined contribution pension scheme that is contracted out of the State Scheme.

The funds held under the defined benefit scheme are valued every three years by a professionally qualified independent actuary, with the rates of contribution payable then being determined by the Pension Trustees on the advice of the independent actuary. The Society is the principal employer and, in line with FRS102, is considered the sponsoring employer of the scheme as it recognises the net defined benefit cost of the scheme and there is no contractual agreement or stated policy for recharging the section 28 net defined benefit cost. Consequently, the Society has recognised the FRS102 deficit of £13,831k (2021: £29,036k) at 31 December 2022, of which BHT’s share is £11,756k (2021: £24,681k). The Board of Governors unanimously reached agreement on the requirement of the Hospital to make deficit payments in relation to the pension and payments started in March 2021.

The pension deficit payments are recognised in the statement of financial activities as they are incurred.

j. Operating Leases

Rentals under operating leases are charged to the statement of financial activities on a straight-line basis over the lease term.

28

The Benenden Hospital Trust (A Company Limited by Guarantee)

Registered Number: 03454120 Charity Number: 1065995

Notes to the Financial Statements For the year ended 31 December 2022

1 Statement of Accounting Policies

k. Tangible Fixed Assets & Depreciation

The cost of fixed assets is their purchase cost, together with any incidental costs of acquisition.

The Capitalisation Policy capitalises individual equipment purchases or groups of like purchases with a value of £5,000 or greater.

Depreciation is calculated to write off the cost or valuation of tangible fixed assets, less their estimated residual values, on a straight-line basis over the expected useful economic lives of the assets concerned. The principal annual rates used for this purpose are:

Leasehold Improvements 4%
Medical Equipment 20%
Computer Equipment 33%
Fixtures & Fittings 14%
Motor vehicles 25%

l. Intangible Fixed Assets & Depreciation

Intangible fixed assets represent computer software and licences. The cost of these assets is their purchase cost, together with any incidental costs of acquisition such as development and implementation costs.

Computer software and licences are amortised on a straight-line basis over their expected useful economic life, at an annual rate of 20%.

m. Stock

Medical consumables and pharmacy stocks are stated at the lower of cost and net realisable value. Where necessary, provision is made for obsolete, slow moving and defective stocks.

n. Debtors

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.

o. Cash at Bank & 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.

p. Creditors & Provisions

Creditors and provisions are recognised where the Charitable Company 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.

29

The Benenden Hospital Trust (A Company Limited by Guarantee)

Registered Number: 03454120 Charity Number: 1065995

Notes to the Financial Statements For the year ended 31 December 2022

1 Statement of Accounting Policies

q. Financial Instruments

BHT does not hold any non-basic financial instruments. The primary financial instruments are cash, receivables from trade debtors and payables to creditors and suppliers. The recognition of trade debtors and trade creditors is at cost. Deferred Income, accruals and prepayments are recognised at the amortised cost.

Financial assets and financial liabilities are recognised when the hospital becomes a party to the contractual provisions of the instrument. Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the charity after deducting all of its liabilities.

All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

only when there exists a legally enforceable right to set off the recognised amounts and the charity intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously. Financial liabilities are de-recognised only when the obligation specified in the contract is discharged, cancelled or expires. Assets, other than those measured at fair value, are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss.

30

The Benenden Hospital Trust (A Company Limited by Guarantee)

Registered Number: 03454120 Charity Number: 1065995

Notes to the Financial Statements For the year ended 31 December 2022

2 Critical Judgements & Key Sources of Estimation Uncertainty

Preparation of the financial statements requires the Governors and management to make judgements and estimates. The items in the financial statements where these critical accounting judgements have been made include:

Other areas of judgement and estimation which the Governors and management draw attention to for the purposes of an understanding of the financial statements (but which are not critical accounting judgements or key sources of estimation uncertainty under FRS 102) include:

31

The Benenden Hospital Trust (A Company Limited by Guarantee)

Registered Number: 03454120 Charity Number: 1065995

Notes to the Financial Statements For the year ended 31 December 2022

3 Donations & Legacies

Donations & Legacies
Legacies
Donations – Benenden Healthcare Society
Donations – Rising Mercury Society
Total Donations & Legacies		 2022
£’000
2021
£’000
418
53
852
1,640
5
40
1,275
1,733

There were no restrictions placed on any funds from Donations and Legacies received in 2022.

4 Analysis of Resources Expended by Expenditure Type

Note
Staff Costs
7
Depreciation & Amortisation
Clinical Consultants Fees
Medical Consumables
Clinical Service Contracts
Governance Costs
5
Marketing & Business Development
Rent Payable to Benenden Society
IT Service Costs
Hospital Services
Total Expenditure by Type		 2022
£’000
2021
£’000
15,996
14,146
2,541
2,335
10,645
9,557
5,964
5,940
653
480
180
260
434
370
2,463
2,300
1,728
1,711
3,767
3,252
44,371
40,351

Costs incurred in raising charitable funds are immaterial.

32

The Benenden Hospital Trust (A Company Limited by Guarantee)

Registered Number: 03454120 Charity Number: 1065995

Notes to the Financial Statements For the year ended 31 December 2022

5 Governance Costs

Governance Costs
Auditor’s remuneration
Internal audit costs
Legal costs		 2022
£’000
2021
£’000
69
66
37
49
74
145
180
260

6 Net (Expenditure)/Income

Net (expenditure)/income is stated after charging:

et (expenditure)/income is stated after charging:
Note
Depreciation of Tangible Fixed Assets
8
Amortisation of Intangible Fixed Assets
9
Operating Lease Rentals
18
Property Lease Rentals
18		 2022
£’000
2021
£’000
2,217
2,166
324
169
59
60
2,463
2,300

33

The Benenden Hospital Trust (A Company Limited by Guarantee)

Registered Number: 03454120 Charity Number: 1065995

Notes to the Financial Statements For the year ended 31 December 2022

7 Employees, Staff & Agency Costs

Average monthly number of people employed was as follows:

Clinical Staff
Clinical Support Staff
Administrative Staff
Total Staff Excluding Bank Staff
Average bank staff paid in a month
Average bank staff not paid in a month
Total Bank Staff
Average FTEs (Permanent Staff)
Average FTEs (Bank Staff)
Average Monthly Full Time Equivalent Employees
Staff and agency costs were as follows:
Staff Costs
Social Security Costs
Pension Costs
Redundancy Costs (including payment in lieu of notice)
Agency Staff
Total Staff & Agency Costs		 2022
Number
2021
Number
179
170
84
81
118
118
381
369
45
35
25
47
70
82
315
303
12
9
327
312
2022
£’000
2021
£’000
10,358
9.323
965
820
3,764
3,100
139
296
770
607
15,996
14,146

34

The Benenden Hospital Trust (A Company Limited by Guarantee)

Registered Number: 03454120 Charity Number: 1065995

Notes to the Financial Statements For the year ended 31 December 2022

The number of employees who received emoluments above £60,000 in the period were as follows:

ollows:
2022 2021
Number Number
£60,000 to £70,000 4 5
£70,001 to £80,000 1 2
£80,001 to £90,000 1 -
£110,001 to £120,000 2 2
£120,001 to £130,000 1 1
£170,001 to £180,000 - 1
£210,001 to £220,000 1 -

The key management personnel of BHT are the Governors and the Hospital Executive as set out on page 10. The charity trustees/Governors were not paid and did not receive any other benefits from employment with BHT during 2022 (2021: £nil).

The Hospital Executive received total employee benefits of £704k in 2022 (2021: £684k) of which the Hospital Director was the highest paid employee receiving total employee benefits of £232k (2021: £196k) including £16k in employer’s pension contributions (2021: £18k).

8 Tangible Fixed Assets

Cost
At 1 January 2022
Additions
Disposals
At 31 December 2022
Depreciation
At 1 January 2022
Charge for the Year
Disposals
At 31 December 2022
Net Book Value
At 31 December 2022
At 31 December 2021		 Leasehold
Improvements
£’000
Fixtures, Fittings
& Equipment
£’000
Motor
Vehicles
£’000
Total
£’000
10,937
12,606
127
23,670
55
1,156
-
1,211
-
(22)
(42)
(64)
10,992
13,740
85
24,817
4,920
9,049
110
14,079
436
1,775
6
2,217
-
(22)
(37)
(59)
5,356
10,802
79
16,237
5,636
2,938
6
8,580
6,017
3,557
17
9,591

35

The Benenden Hospital Trust (A Company Limited by Guarantee)

Registered Number: 03454120 Charity Number: 1065995

Notes to the Financial Statements For the year ended 31 December 2022

9 Intangible Fixed Assets

Cost
At 1 January 2022
Additions
At 31 December 2022
Depreciation
At 1 January 2022
Charge for the Year
At 31 December 2022
Net Book Value
At 31 December 2022
At 31 December 2021		 Computer
software &
licences
£’000
1,889
117
2,006
169
324
493
1,513
1,720

10 Stock

Pharmacy Stock
Medical Consumables Stock
Total Stock		 2022
£’000
2021
£’000
60
46
468
616
528
662

There is no material difference between the carrying value of stock and its replacement cost.

36

The Benenden Hospital Trust (A Company Limited by Guarantee)

Registered Number: 03454120 Charity Number: 1065995

Notes to the Financial Statements For the year ended 31 December 2022

11 Debtors

1 Debtors
Trade Debtors
Amounts due from Related Parties
Prepayments
Total Debtors		 2022
£’000
2021
£’000
880
1,183
1,819
2,135
654
558
3,353
3,876

At 31 December 2022 the total of all amounts due to BHT from the Society was £1,819k (2021: £2.135k) relating to December 2022 activity. Amounts due from the Society are repayable on the 25[th] of the month following the activity and do not incur interest.

12 Creditors: Amounts Falling Due Within One Year

Trade Creditors
Amounts Due to Related Parties
Social Security & Other Taxes
Other Creditors
Deferred Income
Accruals
Total Creditors		 2022
£’000
Restated
2021
£’000
1,025
1,407
395
105
271
211
88
131
584
303
1,320
1,015
3,683
3,172

In 2021 Amounts Due to Related Parties of £105k were reported as part of Accruals. These have now been extracted and disclosed separately in 2022.

Included in Other Creditors is a provision for professional fees relating to insurance claims of £37k (2021: £18k).

Deferred income of £584k (2021: £303k) represents amounts received from Private Patients in advance of treatments being carried out.

37

The Benenden Hospital Trust (A Company Limited by Guarantee)

Registered Number: 03454120 Charity Number: 1065995

Notes to the Financial Statements For the year ended 31 December 2022

13. Statement of Funds

Designated Funds
General Funds
Unrestricted Funds
Restricted Funds
Total Funds		 Brought
Forward
1 Jan 2022
£’000
Incoming
Resources
£’000
Resources
Expended
£’000
Transfers
In/Out
£’000
Carried
Forward
31 Dec 2022
£’000
-
-
-
-
-
16,482
43,082
(44,371)
-
15,193
16,482
43,082
(44,371)
-
15,193
59
-
-
-
59
16,541
43,082
(44,371)
-
15,252

14. Analysis of Net Assets Between Funds

Fixed Assets
Current Assets
Current Liabilities
Total of Net Assets		 Restricted
Funds
2022
£’000
Unrestricted
Funds
2022
£’000
Total
Funds
2022
£’000
Total
Funds
2021
£’000
-
10,093
10,093
11,311
59
8,783
8,842
8,402
-
(3,683)
(3,683)
(3,172)
59
15,193
15,252
16,541

38

The Benenden Hospital Trust (A Company Limited by Guarantee)

Registered Number: 03454120 Charity Number: 1065995

Notes to the Financial Statements For the year ended 31 December 2022

15 Net Cash Flow from Operating Activities

Net (Outgoing) Resources
Returns on Investments & Servicing of Finance
Depreciation of Tangible Fixed Assets
Amortisation of Intangible Fixed Assets
Profit on Disposal of Tangible Fixed Assets
Decrease/(Increase) in Stocks
Decrease/(Increase) in Debtors
Decrease in Amounts Owed by Related Parties
(Decrease)/Increase in Trade Creditors & Accruals
Increase in Amounts Owed to Related Parties
Increase/(Decrease) in Social Security & Other Taxes
Increase in Other Creditors and Deferred Income
Net Cash Inflow from Operations		 2022
£’000
Restated
2021
£’000
(1,289)
(405)
(10)
-
2,217
2,166
324
169
(22)
(11)
134
(128)
207
893
316
250
(77)
664
290
(163)
60
(19)
238
166
2,388
3,582

The prior year figures have been restated to separately report the movement on Amounts Owed to Related Parties as disclosed in note 12. In 2021 this was reported as part of the movement on Accruals.

16 Analysis of Cash Flows for Headings Netted in Cash Flow Statement

Returns on Investments & Servicing of Finance
Interest Received
Capital Expenditure
Purchase of Tangible Fixed Assets
Purchase of Intangible Fixed Assets
Proceeds from Sale of Tangible Fixed Assets		 2022
£’000
2021
£’000
10
-
(1,211)
(758)
(117)
(919)
27
16
(1,301)
(1,661)

39

The Benenden Hospital Trust (A Company Limited by Guarantee)

Registered Number: 03454120 Charity Number: 1065995

Notes to the Financial Statements For the year ended 31 December 2022

17 Analysis of Changes in Net Debt

7 Analysis of Changes in Net Debt
Cash at Bank & in Hand
Total Net Funds		 1 January
2022
£’000
Cash Flow
£’000
31 December
2022
£’000
3,864
1,097
4,961
3,864
1,097
4,961

18 Financial Commitments

At 31 December 2022 the charitable company had total commitments under non-cancellable operating leases as follows:

Amounts Due:
Within 1 year
Between 1 and 5 years
After more than 5 Years		 Land & Buildings
Other
2022
£’000
2021
Restated
£’000
2022
£’000
2021
Restated
£’000
2,600
2,463
59
69
10,400
9,852
178
179
39,000
39,408
-
1
52,000
51,723
237
249

The prior year figures have been restated to correct an error in the financial statements for the year ended 31 December 2021 where only the amount of commitments for the next 12 months was disclosed rather than the total commitments.

19 Pension Obligations

The charity participates in a defined benefit and defined contribution scheme (please note that the defined benefit scheme closed for future accruals at 31 December 2018 with no more contributions to it from 1 January 2019).

The total net cost for the charity for the year was £3,764k (2021: £3,100k). Assets of the pension scheme (“the scheme”) are held in The Benenden Healthcare Pension Plan. The scheme also administers the pension arrangements of the Society. The scheme is currently in significant deficit and requires the Benenden Hospital Trust to make extra contributions to the scheme as part of the recovery plan. The actuaries have confirmed that it is possible to separate the BHT’s assets and liabilities in the scheme and at 31 December 2022 the deficit attributable to BHT was £11,756k (2021: £24,681k). However, disclosure in these accounts is made on the basis that it is a defined benefit scheme with the deficit of £13,831k (2021: £29,036k) being recognised by the deemed sponsoring employer, the Society.

40

The Benenden Hospital Trust (A Company Limited by Guarantee)

Registered Number: 03454120 Charity Number: 1065995

Notes to the Financial Statements For the year ended 31 December 2022

20 Related Party Transactions

The Benenden Hospital Trust (“BHT”) is a controlled body of The Benenden Healthcare Society Limited (“Society”) who are an incorporated friendly society, registered under the Friendly Societies Act 1992, registered number 480F. Control is exercised by the Society through the power to appoint or remove the majority of the Hospital’s trustees and by the Society being a member of the Hospital Trust. The Society’s principal activity is the provision of medical and well-being services to its members.

The Society had the following transactions with the charitable company during the year ended 31 December 2022:

BHT leases the hospital site from the Society under a 25 year lease which commenced on 1 January 2018 and expires in July 2042, with annual rent starting at £3,103k and subject to annual increases in line with RPI. The lease was revalued at 31 January 2021 and the annual rental reduced to £2,300k. Future rental payments will continue to be subject to annual increases in line with RPI and market valuation every 5 years.

At 31 December 2022 the total of all amounts due to BHT from the Society was £1,819k (2021: £2,135k).

At 31 December 2022 the total of all amounts due from BHT to the Society was £395k (2021: £105k).

21 Events After The Balance Sheet Date

The Charitable Company has no events to disclose after the balance sheet date.

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