Charity No: 1067608 Company No: 03420143 NEWBURY & THATCHAM HOSPITAL BUILDING TRUST (LIMITED BY GUARANTEE) TRUSTEES, REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2021 NEWBURY & THATCHAM HOSPITAL BUILDING TRUST (LIMITED BY GUARANTEE) TRUSTEES, REPORT AND FINANCIAL STATEMENTS Contonts Charity information Rèport of the Trustees Independent Audrtofs Report 8-10 Statement of Financial Activities 11 Balance Sheet 12 Slalemenl of Cash Flows 13 Nol85 to the Financial Slatemenls 14-22 NEWBURY & THATCHAM HOSPITAL BUILDING TRUST (LIMITED BY GUARANTEE) CHARITY INFORMATION PRINCIPAL OFFICE: Wesl Berkshire Cornmunity Hospllal Rooke's Way Benham Hill Thalcham Berkshir8 RG18 3AD REGISTERED OFFICE: 2ré Floor Aquis House 49-51 Blagrave Street Reading Berkshire RG11PL ADVISERS: Bankers Barclays Bank plc One Churchill Place London E14 5HP Nalionwde Building Society Kings Park Road Moullon Park Northarnplon NN3 6NW Newbury Building Society 17 BartholDmew Street Ne￿ury RG14 SLY Sollcltors Bevan Brlttan 35 Colslon Avenue Bristol BS1 4TT Auditors Crowe U.K. LLP Black County House Rounds Green Roa¢Y Oldbury Wesi Mldlands B69 2DG Page 1 NEWBURY & THATCHAM HOSPITAL BUILDING TRUST (LIMITED BY GUARANTEE) REPORTOF THE CHARITY TRUSTEES FOR THE YEAR ENDED 30 SEPTEMBER 2021 The Board of Directors. who are the Charity Trustees for the wrwses of the Charities Act 2011, present their Annual Report for the year ended 30 September 2021 under the Companies Act 2006 and the Charities Act 2011. together with the audited financial statements for the year. The Board wnfirms that the latter comply wlh the requirements of the Companies Act 2006. the Company's Memorandum and Articles of Association and Accounting and Reporting by Charities.. Slaternent of Recommended Praclise aPpI￿able to th?ri1185 preparing accounts in accordance wlh the Flnancial Reporting Standard applicable in the UK and Republic of Ireland (FRS1021 (effective 1 January 20151 {Charities SORP IFRS10211. OBJecTIVES AND ACTIVITIES The object of the Charity. in accordance with the Art￿leS of Associ2tlon. Ss the relief of sickness in the community. The Charlty alms lo help the community of Newbury and Thatcham and the wider area especially, but not exclusivety, by the provision and servlcing of hospital bulldings, facilities and equipment for Ihe treatment of people relerred for hospit81 Irealmenl at the Wesl Berkshire Cornmunty Hosphal. In order lo fulfil this purpose, Ihe Charity is. inter alla. aulhorlsed to receive donations, subscriptions and other a55els in accordanc8 with its objectives and to apply these funds solely towards the promotion of Its object￿eS. The Tfuslees Gonfirm that they have complied with the duty in Se¢tion 1715) of the Charities Act 2011, to have due regard to the guid8nce issued by the Chartty Commission on public benefit. The Trustees, objeclwe for the year wag to continue lo provide first dass accommodation lo meet the slralegic aims of the Charity. Additionally lo improve paliBnt care by the provision of equipment and improvements lo facilities where the capital costs cannol be mel by Berkshire Healthcar8 NHS Four)dation Trust IBHFT) but where BHFT is able to meet revenue costs associated with th8 asset. The Tnjstees select Faclllties Managernenl service companies who are able lo provid8 Ihls $ervl¢e and who are familiar with the requirements of hospitals, The Trustees scnrtinise the performance of the Facilities Management Company to ensure performance at the highest level is maintained. The Trustees engage an outsourced flnance and adminislralion team lo run the financial requirements assouated with its a¢lNilies. ACHIEVEMENTS AND PERFORMANCE The Board's main focus Ihls year was the MRI project together wth that of replacing and updallng the swlchgear. However these project are not yel complete Roof repair work continued from the Lrfecycle fund. The variation work completed this year, such as the installation of air Condit￿ing in the Out Patient department. were pald for by the charity. The plans to convert the fire door al the end of the Arcade to a normal door lo enable easier aGGe55 to the Greenham Wing were well advanced and the work was completed in the last quarter of 2021. The roof works were completed in the last quarter of 2021. and the scaffolding remove(i. The effects of the coronawrus pandemic meant that larger projects that were in the planning st8ges stalled and mostly only essential work was carried out at the hospital. Page 2 NEWBURY & THATCHAM HOSPITAL BUILDING TRUST (LIMITED BY GUARANTEE) REPORT OF THE CHARITY TRUSTEES FOR THE YEAR ENDED 30 SEPTEMBER 2021 ACHIEVEMENTS AND PERFORMANCE (continued) We have offered £SO.000 lo BHFf to pay for coronavirus related costs subject to evldence of the expenditure. This has not yel been taken up by BHFT and they may request that it is used for other capital projects. Last year we said we woukl:. Progress plans for the new MRI unit at the hospital. -The planning for this has been Gompleted and just before the year end £1.75 mllllon was donated the Royal Berkshire Hospital Trust to enable them to place the order for equipment. Alhough building has not yel commenced il is hoped that the project will complete in 2022. The Charity is not involved beyond donating funds for the equipment and an awareness of how the project is progressing. Make adaptatlons lo the hospital switchgear lo protect the electrrc supply at the hospital and lo future proof it as far as possible This is progressing well. The charity is waiting for BHFT to agree the plans and the FM manager has the contractors lined up ready. FINANCIAL REVIEW Funding from BHFT continued to be receNed during the year in line wlh the financial model for the operation of the non-medical functions of the hospital. The expenditure for the year was made In accordance wth the same model lo provide the hospital facilities and the additional projects as above. The Rosemary Appeal concluded during 2018119 and Ihg only income this year was bank interest. This has been retained lo pay for additional works in connecllon wlh the vnil such as the conversion of a fire door to allow easier access b8tsveen the main hospitsl building and the can￿r car8 unil for patients. RESERVES POLICY Th8 Trustees consider that they need lo keep Suff￿lent funding available to overcom8 any gNen emergency wth the hospital buildings and lo prowde operational costs in the case of failure of the Facilities Management Company. They also hold funds lo develop the hospital rf there is an appropriate medical requirement th8t BH￿ is unable or unwlling to fund. The Trust has entered into a long-temi contract spanning some 30 years of which h Is onty part of the way through. Th8 Trust requires substantial reserves in order lo manage the iisk5 associated with short term operationa working capital needs, risks in the liming of funding streams and uncertaintses surrounding long term a55umplions ￿1th1￿ the funding model {g.g. inflation and Interest ralesl. They are also required lo hold cash balances ill various accounts with the Funder in order to comply ￿th the terms of the contract. These amounted to £5.900.337 {2020.. £5.564.709) at the balance sheet dale. Work will be requlred In the coming months on the electrical swlchgear al the hospital. A designated fund of £100,000 was allocated for this work in 2019 and due to Increased e51imales was incxeased lo £150.000 this year. It is hoped the work will be done in 2022 Page 3 NEWBURY & THATCHAM HOSPITAL BUILDING TRUST (LIMITED BY GUARANTEE) REPORT OF THE CHARITYTRUSTEES FOR THE YEAR ENDED 30 SEPTEMBER 2021 RESERVES POLICY (continu￿) The balance of restricled fund5 received from various sources towards the renal unit project amounted to £9,171 12020.- £8.9411 al the balance sheet date. Thls wll be u88d for any final costs in connection wlh the new unil including the conversion of the fire door. Consequently the Trustees consider the current level of free r85erves of £8,825,935 {2020.' £9.370.366) appropriate to the Trust's current financial position. INVESTMENT POLICY AND PERFORMANCE The Charitls funds are held in interest bearing bank and building society accounts. Monie5 rdaling to contract sums under the PFI agreemant are required lo be relalned wllhln accounts held wth the Funder. Non-conlracl sums. that are not anlicipaled lo be required at short notice. are placed in time deposit accounts wth British banks and building societies. FUNDRAISING The Charty does not engage in large scale fundraising activities Ilke mass malllng campalgns and does not employ a professional fundraiser nor engage the services of Ihird-party Organisat￿n8 lo help raise funds, and therefore have not considered it necessary to slgn up lo any regulatory code of fundraising practice. No Gomplain15 have been received during the year about any aspect of the fundraising and consideration is always given to prNacy ar)d diplomacy lo ensure approaches for fundraising are approprlale. FUTURE PLANS The primary objective for th& future of the Charity is to continue to provide first class accommodation. facilities and equipment at the West Berkshire Community Hospit81 for the treatment of people referred for hospitsl treatment. Dur¢ng the coming year we seek to.. Monitor the building of the new MRI unil at the hospital. Make adaptations to the hospital switchgear lo protect the electric supply al the hospital and to future proof il as far as possible. Install air conditioning in the UTC dean utility room Complete the install2lion of French Windows in the Rainbow rooms • With Newbury Cancer Care complete the installation of a canopy from the main hospital to the G￿enharn Wing to Improve pallenl experience. The Trustees believe that COVID-1 g should not have a material impact on their finances or activities, beyond projects taking longer to prc4Jress as the NHS concenlrale5 on g811iru through the pandemic. Page 4 NEWBURY& THATCHAM HOSPITAL BUILDING TRUST (LIMITED BY GUARANTEE) REPORT OF THE CHARITY TRUSTEES FOR THE YEAR ENDED 30 SEPTEMBER 2021 STRUCTURE, GOVERNANCE AND MANAGEMENT Newbury & Thatcham Hospital Building Twst vrds founded in 1997. The Charty Is governed by its Articles of Association and wa5 incorporated on 15 August 1997. The Charity registration number is 1067608, and Ihe ¢ompany registration number is 3420143. Company limlted by guarantee Newbury & Thatcham Hospitsl Buildlng Trust 15 a company limited by guaranlee, not having a share capltal. The liability of the members In the event of winding up is limf(ed to an amount not exceeding £1 per member. Ai 30 September 2021 Ihwe were 7 members (2020.. 7 members). Trustees The Trustees who held office and are all Directors of the company were as follows: Sarah Deal Dr Keith Endersby Syvia Galbra Victoria Hopgood Shane Prater Dr Robert Tayton Paul Towns8nd Secr8tary Chairman KeyExecutives and Profes5ionalAdvisers Chairman.. Company Secretary: Dr Robert Tayton Dr Keith Endersby Bankers: Bardays Bank plc and Nationwide Building Soclety Solicitors.. Bevan Brsttan Audit(￿$." Crowe U.K. LLP Details oflhe addre￿ al %thich tho Charity can bg contacted Is on page 1. Governlng Body The current Trustees have the power to appoint flew Trustee5 who are chosen on th8 b8sls of their potentlal contribution to the Charity and the pr(rfessional skills which are ￿qUired to assist in the management of the Charity. When an opportunty arises for a new Trustee, the existing Trustees draw up a short lisl of suitable candidates from the local community. These ￿ndidateS are then Invited lo attend a Trustees meeting. Successful candidates will then be invited to become Trustees. Tru$t¢¢ training Trustees are selected due to their particular area of expertise as tt relates lo the Charlty. An ovemew of the Chariws activitie5 is given at Trustee meetings and a representative of the outsour￿d finance and administration team provides detailed information on procedures as required. The ngw Trustees are also provided wth the Charity Commission publications The Essential Trustee.. What you need to know, and 'Welcome'. Page 5 NEWBURY & THATCHAM HOSPITAL BUILDING TRUST {LIMITED BY GUARANTEE) REPORT OF THE CHARITY TRUSTEES FOR THE YEAR ENDED 30 SEPTEMBER 2021 Organisatlonal manag￿ent The managemerrt of the Charity is undertaken by the Trustees receive irrformalion from an oulsource(J finance and administration team Ihal is responsible for Ihg co-ordination of the financial and non-medical running of the hosprtal and whlch owes a duty of care to the Trustees. Actions arising from these reports are discussed al Trustees meetings and an indiv￿u21 Tnjslee wll be delegated with the task of dealing with that issue and reporting progress to the Trustees. Any urgent issues are reported to the Tnjslees as they arise and where necessary Ihg finance and administralDn team wll be Instructed on the course of aGtion to be undertaken or Ihe Trustees will lake action th8m5efves. Comrnunicatio bel￿een meetings Is generally by e-mail. The Trustees consider that they eomwlse the key management. As they are not remunerated for their Services there ar8 no arrangements for selling the pay and remuneration of key management. Organlsation structure and relatlonships The Newtmjry and Thatcham Hospital Building Trust Llmiled is a stand-alone Charity funded by the West Berkshire Clinical Commissioning Group (previously regional Primary Care Trust IPCTII through Berkshire Healthcare NHS Foundation Trust, which provides funds for the non-medical running of the hospital. The PCTS were abolished on 31 March 2013 and the responsibility for the hospital passed lo Berkshire H8allhGare NHS Foundation Trust (8HFT). The Trustees outsource the majority of the day lo day administration and the maintaining of the financial records to a third-party finance and administration team. The Trustees employ a Facilities Management Company lo run the non-medical aspects of the hospitsl, including maintenance of the building. RISK MANAGEMENT Thg Charity works closely with the Facllities Management Company lo ensure areas of risk are idenlrfied ar)d dooumenled. All risks in relation to medical activities are the responsibility of BHFT. The main risks that the Trustees have idenlifie(l and the actions they have tsken to mitigate them 8re as follows: Financial problems of the Facilities Management Company causing it to default on the contract. The Trustees ensur8 that they hold sufficient fund5 to run the non-medical aspects of the hospital for six months to enable an orderly appointment of a new provider. Trustee age profile. The Truste88 are keeping the wmpo5ition of the board under review to ensure there is a suc¢esslon plan. Failure of a counterparty with whom the Charitys reserve8 are invested. This risk is mitigated by spreading reserves amongst at least three separate counterparties and by restrlctlng Inv8slment into Bri115h Banks and Building Societies only. Royal Berkshire Hospitsl Foundation Tfust becomes insofvenl and cannot afford lo run the 8eNices. There is litde the Trustees can do lo manage this risk beyond keeping in conlact with th8 Clinical Commissioning Groups v4ho would have to appoint a new provider of services. The Trustees continue to review their risk response on an annual basis. Page 6 NEWBURY & THATCHAM HOSPITAL BUILDING TRUST (LIMITED BY GUARANTEE) REPORT OF THE CHARITY TRUSTEES FOR THE YEAR ENDED 30 SEPTEMBER 2021 STATEMENT OF TRUSTEES. RESPONSIBILITIES The Trustees Iwho are a150 Directors of N8wbury & Thatcham Hospital Building Trust for the purposes of company lawl are responsible for preparing th8 Trustees. Annual Report and the finanual statements in accordanca wlh applicable law and United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards). Company law requires the Trustees lo prepare financial statements for each financial year. Under company law the Trustees musl not approve the financial statements unless they are satisfied that they give a tnje and fair vlew of th8 stalè of affairs of the charitable and of the incoming resources and application of resources. including the Income and expenéilure, of the charitable company for that period. In preparing these financial statements, the Trustees are required lo.. 801ect suf(able accounting polioes and then apply them consistendy: observe the methods and prlnciples in the Charities SORP. make judgments and estimate5 that are r8a$onable and prudent,. stale whether applicable UK accounllng standards have been followed. subject to any material departur95 disclosed and 8XFdalned In the flnanclal statements,. and prepare the financial statements on the going concem b8s1s unless ri is inappropriate to presume thal the charitable company wll continue in business. Tha Trusleas a￿ responsible for keeping adequate a[￿￿ntIng records that are sufficient to show and explain the charitable ¢ompany's transactions, disclose wilh reasonable accuracy al any lime the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act and Ihe provision8 (rf the Charrly's conslilulion. They are also responsible for safeguarding th8 assets of the Charity and hence for taking reasonable steps for the prevention arKI delgction of fraud and olh8r irr8gularilies. Provision of Information to auditors So far as the Trustees are aware, there Is no relevant audll Information of which the charitable companys auditor5 are unaware. The Trustees have each taken all the steps that they ought lo have taken as Trustees in order to make themselves aware of any relevant audit information and to establish that the charitable coMpan￿S auditors are aware of that information. In preparlng thls report, the Trustees have tsken advantage of the small companies exemptions provided by the Companies Act 2006. Approved by the Board on 3 February 2022 and signed on its behalf by.. Dr K Endersby Secr•tary and Trust0• Page 7 INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF NEWBURY & THATCHAM HOSPITAL BUILDING TRUST (LIMITED BY GUARANTEE) Oplnlon We have audited the financial 51alements of Newbury & Thalcham Hospital Building Trust for the year ended 30 September 2021 which comprise the Statement of Finaficial Activlties. the Balar￿e Sheet, the Cash Flow Statement and notes lo th8 financial statements. induding signfficanl accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Klngdom Accounting Standard5, inGludir>g Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK Republic of Ireland (United Kingdom Generdly Accepted Accounting Practice). In our oplnion the financial statements.. give a true and fair view of the stale of the Charitable CoMpan￿S affairs as al 30 September 2021 and of its income and expenditure for the year then ended.. have been properly prepared in accordan￿ Nth United Kingdom Generally AG(Epted Accounting Practice," and have been prepared in accordance ￿th the requlrements of the Companies Act 2(Kl6. Basis for opinion We conducted our audit in accordance with International Standard5 on Auditing IUKI IISAS {UKI} 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 FRG'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 SLrfficient and appropriate to provide a basis for our opinion. Concluslons relatlng to golng concem In audtling the flnancial stalements, we have conduded that the trustee's use of the going concem basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not idenlrfied any material Un￿rtaInlIeS relating to events or condillons that, Individually or collectively. may ￿$1 significant doubt on the charitsble companls ability lo continue as a going cor￿rn for a period of at least ￿e1ve months from when the flnancial statements are aulhorised for issue. Our responsibilities and the responsibilities of the trustees with re5peGI to ￿ing concem are descrlbed In tho relevant sections of this report. Other infomiation The Trustees are responsible for the other Information. The other information comprises the information included in the Annual Report, other than the financAal slalements and our audilorfs report Ihereon. Our opinion on the financial statements does not cover the other information and, except lo the extent otherwise exF4icidy stated in our Teport, we do not express any form of assurance conclusion thereon. OLtr responsibility ts lo read the other infomiation and, in doing 50, consider whether the other Informallon is materially inconsistent with the financial statements or our knovAedge obtained in the audit or olherwse app8ars lo be malerialty misstated. If we identify such material Inconsistencies or apparent material misslatemenls. we are required lo detemiine whether this gNes rise to a material misslalemenl in the rinancial statements themselves. If, based on the work we have performed, we condude that the￿ is a material misslalement of this other Inforrn8tion, we are required lo report that fact. We have nothing to raport In Ihls regard. Page 8 INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF NEWBURY& THATCHAM HOSPITAL BUILDING TRUST (LIMITED BY GUARANTEE) Oplnlon on oth•r matt•r prnscrlbed by the Comp4ni•s Ad 2006 In our opinion based on the work undgrtaken In the course of our audit the inforrnats'on given in the Trustees, Annual Report for the financial year for whlch the financiAI statements are prepared is consistent with the financial stslements., and the Trusl8es' Annual Report has been prepared in accordance with appllcable legal requirements. Motters on whlch we are requlred to report by exceptlon In light of the knowledge and understsnding of the Charitsble Company and ils envlronrnenl obtaine(l in the course of th8 audit, wo have not identified material misststsments in the Trustees. Annual Report. We have nothing lo report In respect of tr¢e followng matters in relglion to whlch the Companies Act 2006 requlres us to report to youll, In our oplnion.. adequate accounling records have not been kept.. or Ihe financial statements are not In agregmenl wtth the accounlng records and retums: or certaln dlsclosures of Trustees. remuneration speoified by law are not made.. we have r￿¢ received all Ihe infomwlion and explanallons we requlre for our audiL Responslbllltles of the Trustees As explained more fully in the Trustees, Responsibilities Slalement sel out on paga 7, the Trustees ore responsible for the preparation of the financial statements and for b8ing satisfied that they glve a true and fair view, and for such intemal control as the Trustees delemiine is necessary to enable the preparation of finanaal ststemenls that are fr8e from mal8rtal mlsstatemenl, whether due to fraud or emr. In preparing the financial slalements, the Trustees are responslble for asse88irbg the Charitable Compan¥s ablllty to conllnue as a going concem. disclosing. as applicable, matters related to going concern and using the going concern basis of aGGounling unless the Trustees either Intend to Ilquldate the Ch8ritable CoFnpany or to cease operations. or hav8 no r8alislic alt8rnalive but lo do $0. Audltorf$ ro$pon$lbllltle$ for t￿ audlt of the flnan¢lal statements Our objectives are lo obtain reasonable assurance about whelher the fSnancial ststements as a whole are free from Tnalerial fflisstal8menl, whether due lo fraud or &rror, and to issue an 8uditorf5 report that Includes OUT opinion. Reasonable assurance is a high level of assurance, bul is not B gu8rantee that an audit conducted In accordance with ISAS (UK) wll aNYays delect a malorial misstat8m8nt when il exis15. Misstatsments can arise from fraud or error and are considered material rf. individually or in the aggregate, thèy could reasonably be expected lo influence the economlc d8dslons of us8rs tak8n on th8 basis of these financAal slatoments. Det8lls of the extent lo whlch the audit was ¢xnsrdered capable of detectirg irragularilies, Sncluijing fraud and non-compliance with laws and regulations are set out below. A further descripb'on of our responsibilities for the audit of the financial Statements Is lO￿ted on Ihe Flnanclal Reporting Courril's website at.. www.1rc.or .uklauditorsres nsbilitses. This description fomis part of our auditorfs report. Exl•nt lo whlGh th• audrt wa8 conslder•d capable of detectlng lrnegularit•es, includlng fraud Itregularities. including fraud. are Instances of non-compllance w6th laws and regulatlons. We idenlified and assessed fhe risks of mat8rfal misstalemenl of Ihe financial ststsmenls from iThegularftl8s. whether due lo fraud or error, and discussed these belween our audit team members. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and appropriate to provide basis for our opinion. Page 9 INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF NEWBURY & THATCHAM HOSPITAL BUILDING TRUST (LIMITED BY GUARANTEE) We obtained an understandlng of the legal and regulatory frameworks within whith the charitable company operates, focusing on those laws and regulations that have a direct effect on the deleTmin8lion of material amounts and disclosures in the financial statements. The laws and regulation5 we Conside￿d in this context were the Companies Act 2006, taxation legislation. together w6th the Chariles SORP IFRS 1021. We assessed the required Compliance with these laws and regulations as part of our audit procedures on the related flnandal stslemenl items. In 8ddibon. we considered provisions of 01her laws and regulalons that do not have a direct effect on the flnancial statements but compliance with which might b8 fund8m8ntsl to th8 charitable cornpany's ability to operate or to avoid a material penalty. We also consldered the oppot1unities and incentives that may exist within the charltable company for fraud. The laws and re9ulations we considered in this context lor the UK operations were General Data Protectlon Regulation IGDPR). Audlting standards Ilmll the ￿qUIred audit procedures lo identify non-compliance wlh these laws and regulations to enqulry of the Trustees and other management and inspection of regul810ry and leg81 Cor￿spond￿nc&, if any. Wa idantified the greatest risk of material impact on the flnancial statements from irregularities, including fraud, lo be wthin the ￿rnIng of recognI￿on of donation and ancillary income, procurement Pro￿sseS for si9nilicant (apital projects and th8 override of contro15 by management. Our 3udil procedures lo respond to these risks included enquirie5 01 management, and the Board about Ihelr own identification and assessment of the risks of irregularities, sample testing on the poskn.ng of joumals, rèviewing accounting estimates for biases, reviewing regulatory correspondence bwlh the Charity Commission and reading mlnutes of rneetings of those charged with govemance. ing lo the inherent limitslions of an audit, ther8 is an unavoidable iisk that we may not have detected som6 wnalerial misstatemenls in the financial statements, even though we have propety planned and perfom)ed our audll In accordance with auditing standards. For example, the further removed non-compli8nc8 with18ws and r8gulations liwularitiesl is from the events and transactions reflected in the financlal slatemenls, the less likely the inherently Ilmlted prO￿dureS required by auditing standards would identify it. In addition, as with any audit. Ihgre remained a higher rbsk of non-delection of irregu18witigs, as these may involve ¢ollusion, forgory, intentional omission5. misrepresentations, or the overdde ol Internal controls. We are not responsible for preventing norKompliance and cannot b8 expected lo detsct non in provisions {544,2011 764,895 112,682) 583,856 (709,660) 146.229) 390.662 T24,328 (31, 175) 640.307 (69,688) 55,187 Net cash provided by operating aGtivitig8 1626 790 Cash flows from Invgstlng actlvltles Inte￿$t re¢ewed N•t cash provided by investing activities Cash flows from flnanerng adivities Interest paid Repayment of loan (583,856) 855 396 (640.307) 871093 Not Gash used In by financing actlvltl8s 1439 252 1511400 Chango in Gash and cash oqulvalonts In the year Cash and cash equlvalents at th& beginning of tho year 11,409.989) 8 925 234 146.565 8 7T8 669 Total cash and cash equlvalents al thg end of the year 8 925 234 2021 2020 Analysls of ¢88h and cash equlvalonts: Cash at bank and in hand The notes on pages 14 to 22 form part oflhese financkql statements Page 13 NEWBURY & THATCHAM HOSPITAL BUILDING TRUST (LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2021 CHARITY INFORMATION The principal activrty of the Charity is the provision and servicing of hospital buildings, facilities and equipment for the Irealmenl of people referred for hospital Irealmenl at th9 Wesl Berkshire Community Hospital. The Charity {registered number 3420143 and Charity number 1067608) is incorporated and domiciled in the UK. The a(Idress of the princip81 place of business is West Berkshire Community H05Prtal. Rooke's Way, Benham Hill. Thalcham, Berkshire. RG18 3AS. The functional and presentational currency of Ihe Charity is GBP, and the accounts are rounded to the nearest GBP. ACCOUNTING POLICIES Basis of pr¢paratlon The flnanclal statement5 have been prepared in accordance with Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to charitie5 preparing their accounts in accordanrE w(Ih the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 (effective 1 January 20191 Charities SORP IFRS 1021, the Financial Reporting Standard applicable in th8 UK and Republic of Ireland IFRS 1021 and the Companles Act 2006. Newbury & Thalcham Hospltal Building Trust meet5 the definilion of a public benefit entity under FRS 102. Assets and liabilities are initially re¢ognlsed al hlslorfcal cost or transaction value unless otherwlse slated in the relevant accounting pollcy note. b) Going Concorn Having reviewed the funding faciliti8s aVaila￿e lo the Charity together with the expected on going demand for services and the Charivs future projected cash lows, the Trustees have a reasonable expectation that the Charity has adequate resources to continue its aclivilies for the foreseeable future. In their assessment of going concem the Trustees have consKlered the current and developing impact on the Charity as a fesult of the COVID-19 viru5. This has not had a signrflcant, immediate impact on the Charitys operations bul the Tru51ees are aware that rf the current situation becomes prolonged then this may change. Having regard lo the above, the Trustees believe it appropriate lo adopt the going concern basis of accounting in preparing the financial slalements Critlcal accounting judgèments and key sources of gstimation uncartainty In the application of the Chariws accounting policies, which are described in note 2. Tnjstees are required lo make judgements, estimates and assumptions about the carying value of assets and liabilities that are not readily apparent from other sources. The estimation and vndedwng assumption5 are based on historical experience and other factors that a￿ considered lo be relevant. Actual results may drffer from these estimate5. The 95timale5 and undedying assumptions are reviewed on an on-going basis. Revisions lo accounting estimates are recognisgd in the period in which the estimate is revised ff the revision affects only that perlod, or in the period of revision and future periods rf thg rgvision affects thg Jrrenl and future periods. Page 14 NEWBURY & THATCHAM HOSPITAL BUILDING TRUST (LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2021 In the view of the Trustees, the key source of estimation uncertainty that ha5 a significant effert on the amounts recognised in the financial statements is that of the Lrfe CyGle and Maintenance provision. The discount ralg used is in line with gilt rates for the same period as the provision. d) FinanGial Instrumonts Ba51¢ financial inslTurnent5 include debtors and Gredilors. Debtors and creditors are initially recognised al transaction value and subsequently measured at amortised cost. Note 16 provides more informats'on on financial inslfuments where future cash flows are anlicipaled, wth financial assets referring lo cash, debtor balances exduding prepayments an(1 financial liabilitles referring to all creditor balances exduding other taxe5 and social security. Incom• Voluntary income is included in the Statement of Financial Activit￿ {SoFAI when the Charity 1$ legally entided to the income, receipt is probable, and the amount can be quantrfied with reasonable certainty. For legacies. entitlement is considered eslabllshed On￿ the Charity has been notified of an impending distribution. All other income is accounted for on an accruals ba81S. Exp•nditur• All resour￿ expended are accounted for on an accruals basis. Charitable artwities include costs of services. support costs and governanee costs (costs associated with constitutional and stalulory requlrementsl. In previous years Governance costs {cosls associated with meeting the Gonstitutional and statutory requirements of Ihe Charity, the independent exarniner fees and costs in respect of the stralegic manag8ment of the Charity) were shown separately in the Statement of Financial Activities. To comply wth Charities SORP {FRS 1021 GovemanGe costs have been induded within charitable activities as an element of other support costs. g) Taxation The Tnjsllg a ￿gIStered Charity. Under S505 ICTA 1988 the Charity is not 8ublect lo taxation on Ils charitable 8Ctivilies. Fund a¢¢ounting Unre51TiGted funds Funds which are expendable 8t the discretion of the Trustees for furtherance of the objects of the Charity. Restricted funds Funds that have restrictions imposed by donors and only be applied for the particular purposes specffied by the donor$. Deslgnaled funds Funds that have restrictions imposed on them by the Trustees lo be used on the purpose specified. Page 15 NEWBURY & THATCHAM HOSPITAL BUILDING TRUST (LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2021 ACCOUNTING POLICIES (CONTINUED) Accounting for the Hospital Facility Management Contract The hospital was buih and is operated under a PFI contract, which on completion of the build transferred substantlalty all the rlsks and rewards assoclaled wllh ownershlp of the building to the Berkshire Healthcare NHS Foundation Trust IBHFT)- in exchange for finance receivable. Due to the PFI Contract the revenue received from the BHFT, in relation to the operation and farylity management of the h05pitsI, is recognised as a fixed income stream as dictated by the Financial Model. The Financial Model sets out the revenues required by projecting the 8xpecled future costs for the operation of the hospital. The finance receivable revenues received from the BHFT are 8PPOrtioned between.. Capital repayment Finance receivable Provision of hosp¢tal services Finance receivable is allocated on a decreasing sum of diglts basls over the Iwe of the contract and is induded in the Provision of Hospital Services. Dgbt0rs Trade and other éebtors are recognised at the Settlement arnounl due after any trade discount offered. Prepayrnents are valued al the amount prepaid after taking account of any trade discounts due. Credltor8 and provlslons Creditors and provisions are recognised when the Charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due lo setue the obligation can be measured or eslirnaled reliably. Creditors and provisions are nomally recognised at their settlemant amount after allowing for any trade discounts due. The Lrfe Cyde and Maintenance prowsion has been recognised in the accounts relating to an obligation under the terms of the contract to ensure that the buildings and certain assets are maintained lo a suitable standard. This provision reflects the balance held, plus amounts to be transfe￿ed into, the Lrfe Cycle Bank Account, which holds funds r8laling lo this obligation. Cash and cash equlvalents Cash is represented by cash in hand and deposits wth financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash wth insignificant risk of change in value Page 16 NEWBURY & THATCHAM HOSPITAL BUILDING TRUST {LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2021 DONATIONS AND LEGACIES 2021 2020 Other donalKsns 13 In 2021 and 2020 the donations received by the Charity were restricted. EXPENDrruRE 2021 2020 Charltable Acdvltles.. Cost of hospital servlcos - contractual Facilities management charge Management fees Sinking fund expenditure Model update ArnoTtisation of flnan¢e ￿CeiVable Loan Interest Insurance Variation expenditure recharged Amortisation of loan arrangement fees Utility charge Governan Other costs 2.205,854 94.880 413.334 16.400) 758.600 583,856 47,065 58.599 6,295 274,160 15,000 2, 163,956 91.910 495. 160 7,600 718.575 640,307 40,518 76,379 5,753 265.063 15.000 82 436 4497,399 4,602,657 Cost of hospital servlces- voluntary Variation 8xpenditure mel by Charity Donations lo Rosemary ApFeal Donations for MRI Scanners 19,863 2.887 1750 000 1,769.863 2.887 4 605 544 The Newbury and Thalcham Hospital Building Trust has nil em ￿0yeeS (2020.. nil) and key rnanagement personnel remuneration is £nil (2020.. £nil). Page 17 NEWBURY & THATCHAM HOSPITAL BUILDING TRUST (LIMITED BY GUARANTEE} NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2021 AUDITOR'S REMUNERATION 2021 2020 Auditor's remuneration atsdll '. other seNlces:_ SPV management other Serv￿es._ variations 15.000 94.880 15.000 91,910 TRUSTEES, REMUNERATION AND EXPENSES The Trustees re¢eNed nefiher remuneration nor reimbursed expenses in either the c#Jrrent or preceding year. DEBTORS: Amounts falling due wthin one year 2021 2020 Finance receivable other debtors Prepayments and accrued inGome 799,459 750.000 764.895 519 681 1284.57fi DEBTORS: Amounts falling due after more than one year 2021 202Q Finance re￿1vable CREDITORS.. Amounts falling due within one year 2021 2020 Building Society- loan capital repay3ble within one year Trade creditors Social Securlly and other taxes Other creditors Accruals 757,966 270,404 83,104 9.275 855.396 295,458 106,619 9,046 710876 Page 18 NEWBURY & THATCHAM HOSPITAL BUILDING TRUST (LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2021 10. CREDITORS: Amounts falling due after more than one year 2021 2020 Building So¢iety loan capilal due.. In one- two years In two- five years In more than five years 872,271 2,622.109 4 474 735 757,966 2,263, 760 5 505 356 The loan is secured on the assets of the Trust and is for a temi of 25 years which commenced in March 2004. Interest is repayable on the loan al a fixed rale of 5.52¥0 plu5 al present an additional margin of 0.85%. PROVISIONS Ltfe Cycle and Maintenance Al 1 October 2020 Addttions Amounts used 1.378,200 393,936 AI 30 September 2021 The additlons in ￿Spect of lifwycling and maintenance is based on exp8nditsJre forecasts over the term of contract. The timing of actual 9xpenditurg is subject lo variation and the provision represents the difference belween forecast and actual spend to date. 12. RELATED PAR￿ TRANSACTIONS During the year £Nil 12020.. £nifj was donated to the Rosemary Appgal on b8haW of Trustees of whlch NTHBT will be entitled to half. The Rosemary Appeal is a joint fundraising appeal b8tW8en WHBT and Newbury & Dlstri¢t Cancer Care Trust INDCCT). As at the year end NTHBT owed NDCCT £9,275 (2020.. £9,046) in relation to the fundraising appeal. Pag819 NEWBURY & THATCHAM HOSPITAL BUILDING TRUST (LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2021 13. UNRESTRICTED FUNDS Ali October 2020 At30 Septgmber 2021 Incomlng Tesourcos Resources 0x￿nded Transforg General fund Designated fund - Swilchgear 9,270,366 4,972.831 {5,517,2621 150.DOOI 8.675.935 The Switchgear fund relates to an electrical upgrade needed for the hospital. At1 October 2019 At30 September 2020 Incoming re50urGgs Resources gxpended Tran$f•rs General fund Designated fund - Switchgear 8,886,857 4,986. 186 (4,602,657) 9.270.366 100,000 100.000 986.857 ..49_￿￿1fjfj 14. RESTRICTED FUNDS Atl October 2020 At30 September 2021 Incornlng rgsourcos Resourcos expended Transfers Renal Unit MRI Scanners 8,941 230 750 000 9.171 750 000 The Renal Unit fund represents donations to the Rosemary Appeal received toward5 the planned construction of a Renal Unit al the hospltal. The MRI scanner5 fund relates lo MRI scanners needed for the hospital. All October 2079 At30 September 2020 Incomlng resources ResourGoS oxp8nded Transfers Renal Unit Page 20 NEWBURY & THATCHAM HOSPITAL BUILDING TRUST (LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2021 15. ANALYSIS OF NET ASSETS BETWEEN FUNDS 2021 N•t curr•nt assots Long torm Total 2021 Provisions Transfers Unrestricted- General fund 17,803,853 Unrestricted - Designated 150,000 Restricted 17,769,118) (1,358,802) 8.675,935 150,000 7 769 1161 IL35&￿_) 2020 Net current assels Long term 118bllty Total 2020 ProwS￿nS Transfers Unrestricted- General fund 19.175,648 Unreslricted- Designated 100,000 RestnGted {8,527,082) {1,378.200) 9,270,366 100,000 -378. 16. FINANCIAL INSTRUMENTS Financial assets and liabililies measured al fair value are finan￿ receivable and provisions. 2021 2020 Financial asset5 measured at fair value Financial liabilitie5 measured at fair value 10,452,174 11.217,069 13T8.2QO 17. ANALYSIS OF CHANGES IN NET DEBT 01 Oct 2020 Cash-flows Other non