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 2024 NEWBURY & THATCHAM HOSPITAL BUILDING TRUST (LIMITED BY GUARANTEE) TRUSTEES, REPORT AND FINANCIAL STATEMENTS Contents Charity information Report of the Trustees indepena'ent Auditor's Report 8-10 Slatement of Financial Activities 11 Balan￿ Sheet 12 Statement of Cash Flows 13 Notes to the FinanGlal Statements 14-22 NEWBURY & THATCHAM HOSPITAL BUILDING TRUST (LIMITED BY GUARANTEE) CHARITY INFORMATION PRINCIPAL OFFICE: West Berkshire Community Hospital Rooke's Way Benham Hill Thatcham Berkshire RG18 3AD REGISTERED OFFICE: 5th Floor R+ Building 2 Blagrave Street Reading Berkshire RG1 1AZ ADVISERS: Bankers Bar¢lays Bank plc One Churchill Placè London E14 5HP Nationwide Building Society Kings Park Road Moulton Park Northampton NN3 6NW Newbury Building Society 17 Bartholomew Street Newbury RG14 SLY Sollcltors Bevan Brittan 35 Colston Avenue Bristol BS14 Audltors UHY Ross Brooke Suite I Windrush Court Abingdon Business Park Abingdon OX14 1SY Page 1 NEWBURY & THATCHAM HOSPITAL BUILDING TRUST (LIMrrED BY GUARANTEE) REPORT OF THE CHARITY TRUSTEES FOR THE YEAR ENDED 30 SEPTEMBER 2024 The Board of Directors, who are the Charity Trustees for the purposes of the Charities A¢t 2011, present their Annual Report for the year ended 30 September 2024 under the Companies Act 2006 and the Charities Act 2011, together with the audlted financial statements for the year. The Board confirms that the latter comply wilh the requirements of the Companies Act 2006, the Company's Memorandum and Articles of Association and Accounting and Reporting by Charities.. Statement of Recommended Practise applicable to charities preparing accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS1021 (effective 1 January 2019) (Charitles SORP IFRS102)}- OBJECTIVES AND ACTIVITIES The object of the Charity, in accordan¢e with the Articles of Associalion, is the relief of sickness in the Gommunity. The Charity aims to help Ihe community of Newbury and Thatcham and the wider area especially, but not exclusively, by the provislon and servicing of hospital buildings, facilities and equlpment for the treatment of people referred for hospitsl treatment at the West Berkshire Community Hospital. In order to fulfil this purpose, the Charity is. inter alia, authorised to receive donations, subscriptions and other assets in accordance with its objectives and to apply these funds solely towards the promotion of its objectives. The Trustees confirm that they have Complied with the duty in Section 17 {5) of the Charities Act 2011. to have due regard to the guidance issued by the Charity Commission on public benefit. The Trustees, objective for the year was to continue to provide first Class accommodation to meet the strategic aims of the Charity. Additionally to improve patient care by the provisSon of equipment and improvements to facilities where the ¢apital costs cannot be met by Berkshire Healthcare NHS Foundation Trust (BHFT) but where BHFT is able to meet revenue costs associated with the asset. The Trustees select Facilities Management service companies who are able to provide this service and who are familiar with the requlrements of hospitals. The Trustees s¢rutinise the performance of the Fa¢ilities Management Company to ensure performance at the highest level is maintsined. The Trustees engage an outsourced finance and administration team to run the financial requirements associated with its activities. ACHIEVEMENTS AND PERFORMANCE The Board's main focus this year was continuing the support given to the West Berkshlre Community Hospital in various ways. We installed an awning on the High¢lere ward balcony. We installed an awning on the Rainbow rooms balcony. Work ¢ontlnued on considering Improvements to the car parking at the hospital. The Ilfecycle fund covered remediation works to the fire doors. togelher with resurfacing of the car park and replacement of fire alarm system devices. It also covered a major refresh of the theatres lighting system. Page 2 NEWBURY & THATCHAM HOSPITAL BUILDING TRUST (LIMITED BY GUARANTEE) REPORT OF THE CHARITY TRUSTEES FOR THE YEAR ENDED 30 SEPTEMBER 2024 ACHIEVEMENTS AND PERFORMANCE {continued} Last year we said we would:. Contlnue to monitor the building of the new MRI unit at the hospital. -This is still progressing, albeit very slowly. The original commercSal ¢onlractor lo the Royal Berkshire Foundation Hospital pulled out of the contract and a new contractor was sought by the hospital. AS a result new plans had to be drawn up and this is on-going. Complete any car park works agreed as a result of the car park SUNey. This has been delayed by the decarbonisation project initiated by Berkshire Healthcare Foundation I rust. Until decisions have been made on locations for plants for this, the car park works are unable to progress. Consider providing work needed to enable the installation of mammogram and dexascanner equipment. This progressed rapidly over late Spring and commenced in early Autumn. The 5nltlal work was done in September and the turnkey installation was completed in OctoberlNovember 2024. The equipment was provided by the Government via their funding for diagnostic hubs. Th.e League of Friends provided the funding for the dexascanner. We are grateful to a charitable trust who provided a donation to cover this building work. Support Bellrock in undertaking a survey of the hospital rendering and facilitste any repairs. This was ongoing over the year. Afler contscting the original manufacturer of the render, a Consultant recommended by them was engaged to conduct a further survey of the render and this was Gompleted after the year end. The work required is less than origlnally anticipated and 1$ being planned in over the next couple of years. It wlll be funded from the lifecycle fund. Consider any reasonable approaches from Berkshlre Healthcare Foundation Trust for assistsn¢e to improve patient experience. No requests received other than noted above. The trustees will still Consider any items requested. FINANCIAL REVIEW Funding from BHFT continued to be received durlng the year In line with the financial model for the operation of the non-medical functlons of the hospital. The expenditure for the year was made in a¢¢ordan¢e with the same model to provide the hospital facilities and the additional projects as above. RESERVES POLICY The Trustees consider that they need to keep sufficient funding avallable to overcome any given emergency wilh the hospital buildlngs and to provide operational costs in the case of failure of the Facilities Management Company. They also hold funds to develop the hospital if there is an appropriate medi¢al requirement that BHFT is unable or unwilling to fund. The Trust has entered into a long-term ¢ontract spanning some 30 years of which it is only part of the way through. The Trust requires substantial reserves in order to manage the risks associated with short term operational working capltal needs, risks in the timing of funding streams and uncertainties surrounding long term assumptions within the funding model {e.g. inflation and interest rates). They are also required to hold cash balances in various accounts wlth the Funder in order to comply with the terms of the contract. These amounted to £8,693,744 {2023.' £7,317,892) at the balance sheet date. As the contract enters into its fSnal decade, the condition of the building and facilities on hand-back has to be considered as "condition B" has to be achleved. The trustees are mindful of this when considering the reserves held. Page 3 NEWBURY & THATCHAM HOSPITAL BUILDING TRUST (LIMITED BY GUARANTEE) REPORT OF THE CHARITY TRUSTEES FOR THE YEAR ENDED 30 SEPTEMBER 2024 RESERVES POLICY (continued) The balance of restricted funds received from a charitable trust for facililating works for the mammography and dexascanner suite amounted to £118,029 (2023.. £nil) at the balance sheet date. Consequently the Trustees consider the current level of free reserves of £10,550,916 (2023.. £9,588.367) appropriate to the Trust's current financial position. INVESTMENT POLICY AND PERFORMANCE The Charity's funds are held in interest bearing bank and building society account5. Monies relating to contract sums under the PFI agreement are required to be retained within a￿OuntS held with the Funder. Non-contract sums, that are nol anticipated to be required at short notice, are placed in time deposit accounts with British banks and building societies. FUNDRAISING The Charily does not engage in large scale fundraising activities like mass maS1ing campaigns and does not employ a professional fundraiser nor engage the servi￿$ of third-party organisations to help raise funds, and therefore have not considered it necessary to sign up to any regulatory code of fundraising practice. No complaints have been received during the year about any aspect of the fundraising and consideration is always given lo privacy and diplomacy to ensure approaches for fundraising are appropriate. FUTURE PLANS The primary objective for the future of the Charity is to continue to provide firsl class accommodation, facilities and equipment at the West Berkshire Community Hospital for the treatment of people referred for hospital treatment. During the coming year we seek to: Complete the Alston Imaging Suite for mammography and dexascannerand ensure it is brought into operation Support the construction of the new MRI building. Reorganlse the staff car park to alleviate parking in the patient car park Support Bellrock in undertaking repairs to the hospital rendering. Support Bellrock with the annual review of the hospital premises to ensure that the condition at the hand-back meets the required standard. Page 4 NEWBURY & THATCHAM HOSPITAL BUILDING TRUST (LIMITED BY GUARANTEE) REPORT OF THE CHARITY TRUSTEES FOR THE YEAR ENDED 30 SEPTEMBER 2024 STRUCTURE, GOVERNANCE AND MANAGEMENT Newbury & Thalcham Hospital Building Trust was founded in 1997. The Charity is governed by its Articles of Association and was incorporated on 15 August 1997. The Charity registration number is 1067608, and the company registration number is 3420143. Company Ilmlted by guarantee Newbury & Thatcham Hospital Buildlng Trust is a company limited byguarantee, not having a share capitsl. The liability ofthe members in the event ofwinding up is limitedto an amount not exceeding £1 per member. At 30 September 2024 there were 8 members {2023.' 8 members). Trustees The Trustees who held office and who are all Directors of the company were as follows: Sarah Deal Dr Keith Endersby Sylvia Galbrallh Victoria Hopgood Shane Prater Richard Rudgely Dr Robert Tayton Paul Townsend Secretary Chairman Key Executives and Pmfessional Advisers Chalmian: Company Secretary: Dr Robert Tayton Dr Keith Endersby Bankers.. Barclays Bank pl¢ and Nationwide Building Society Solicilors: Bevan Brittan Auditors.. UHY Ross Brooke Details of the address at which the Charity can be contacted is on page 1. Governlng Body The current Trustees have the powerto appoint newTruslees who arechosen on the basis of their potential conlribution to the Charity and the professional skills which are required lo assist in the management of the Charity. When an opportunSty arises for a new Trustee, the existing Trustees draw up a short list of suitable candidates from the local community. These candidates are then invited to attend a Truslees meeting. Su¢¢essful candidates will then be invited to become Trustees. Trustee training Trustees are selected due to their parti¢ular area of expertlse as it relates to the Charity. An overview of the Charity's activitles is given at Trustee meetings and a representatlve of the outsourced finance and administration team provides detailed information on procedures as requlred. The new Trustees are also provlded with the Charity Commission publications 'The Essenti81 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 2024 Organisational management The management of the Charity is undertaken by the TrLtstees who receive information from an outsourced finance and administration leam that is responsible for the co-ordination of the financial and non-medical running of the hospitsl and which owes a duty of care to the Trustees. Actions arising from these reports are discussed at Trustees meetings and an individual Trustee will be delegated with the task of dealing with that issue and reporting progress to the Trustees, Any urgenl issues are reported to the Trustees as they arise and where necessary the finance and administration team will be instruGted on the course of action to be undertaken or the Trustees will take action Ihemselves. Communication between meetings is generally by e-mail. The Trustees consider that they comprise the key management. As they are not remunerated for their services there are no arrangements for setting the pay and remuneration of key management. Organlsatlon structure and relatlonshlps The Newbury and Thatcham Hospital Building Trust Limited is a stsnd-alone Charity funded by the Wesi Berf(shire Clinical Commissioning Group (previously regional Primary Care Trust (PCT)) through Berkshire Healthcare NHS Foundation Trust, which provides fvnds for the non-medlcal running of the hospital. The PCTS were abolished on 31 March 2013 and the responsibility for the hospital passed to Berkshire Healthcare NHS Foundation Trust (BHFT). The Trustees outsource the majority of the day to day adminislration and the maintaining of the financial records to a third-party finance and administration team. The Trustees employ a Facilities Management Company to run the non-medical aspects of the hospital, including maintenance of the building. RISK MANAGEMENT The Charity works closely with the Facilities Management Company to ensure areas of risk are identified and documented. All risks in relation to medical activities are the responsibilty of BHFT. The main rlsks that the Trustees have identified and the adlons they have taken to mitigale them are as follows.. Financial problems of the Facilities Management Company causing it to default on the contract. The Trustees ensure that they hold sufficient funds 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 Trustees are keeping the composition of the board under review to ensure there is a succession plan. Failure of a counterparty with whom the Charity's reserves are invested. This risk is mitigated by spreading reserves amongst at least three separate counterparties and by restricting investment into British Banks and Building So¢ietles only. Royal Berkshire Hospitsl Foundation Trust becomes insolvent and cannot afford to run the services. There is little the Trustees can do to manage this risk beyond keeping in contact with the Clinical Commissioning Groups who would have to appoint a new provlder of seNl¢es. The Trustees continue to revlew 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 2024 STATEMENT OF TRUSTEES, RESPONSIBILITIES The Trustees {who are also Directors of Newbury & Thatcham Hospital Building Trust for the purposes of company law) are responsible for preparing the Truslees, Annual Report and the financial statements in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice {United Kingdom Accounting Standards). Company law requlres the Trustees to prepare financial statements for each financial year. Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affalrs of the charitable and of the incoming resources and application of resources, including the incO￿.e and expendlture, of the charltable company for that period. In preparing these financial statements. the Trustees are required to.- select suitable accounting policies and then apply them consistently., observe the methods and principles in the Charities SORP- make judgments and estimates that are reasonable and prudent; state whethèr applicable UK accounting standards have been followed, subject to any material departures disclosed and explained In the financial statements,. and prepare the financlal statements on the going Concern basis unless it is inappropriate to presume that the charitable company will continue in business. The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company's transactions. disclose with reasonable accuracy at any time the financial posltion of the charitable company and enable them to ensure that the financial statements rnmply with the Companies Act and the provisions of the Charity's constitution. They are 81s0 responsible for safeguarding the assats of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other Irregularities. Provision of Informatlon to auditors So far as the Trustees are aware, there is no relevant audit information ofwhich the charitable company s auditors 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 company's auditors are aware of that information. In preparing this report. the Trustees have taken advantage of the small companies exemptions provided by the Companies Act 2006. Approved by the Board on and signed on Its behalf by: Dr K Enders Secretary and Trustee Page 7 INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF NEWBURY & THATCHAM HOSPITAL BUILDING TRUST (LIMITED BY GUARANTEE) Opinlon We have audited the financial statements of Newbury & That¢ham Hospital Building Trust (the charitable company) for the year ended 30 September 2024 which comprise the Statement of Financial Activlties, the Balance Sheet, Stalement of Cash Flows and notes to the financial statement5, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and Unlted Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland {United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements: give a true and fair view of the state of the Charitable Company's affairs as at 30 September 2024 and of its incoming resources and applicaiion of resources, including its income and expenditure, for the year Ihen ended., hdve been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and have been prepared in accordance with the requirements of the Companies Acl 2006. Basls for oplnlon We ¢onducted our audit in accordance with Intemational Slandards on Auditing (UK) (ISAS (UK)) and applicable law. Our responsibilities under those slandards are further described In the Auditor's responsibillties 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 financlal statements in the UK, in¢luding the FRC'S Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audil evidence we have obtained is suffi'cient and appropriate to provide a basis for our opinion. Concluslons relating to going concem In auditing the financial statements, we have concluded that the trustee's use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identrfied any material uncertainties relating to events or Conditions that, individually or collectively, may cast significant doubl on the charitable company's ability to continue as a going concem for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the trustees with respect to going ¢on¢ern are described in the relevant sections of this report. Other infomiatlon The other information comprises the information included in the twstees annual report, other than the financial statemenls and our auditor's report thereon.The trustees 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 concluslon thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial ststements or our knowledge obtained iri the course of. the audil or otherwise appears to be materially misstated. If we identify such material In¢onsisten¢ies or apparent material misstatements. we are required to determine whether this gives rise to a material misstatement in the finan¢ial statements themselves. If, based on the work we have performed, we conclude that there is a material misststement of this other infomiation, we are required to report that fact. We have nothing to report in this regard. Page 8 INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF NEWBURY & THATCHAM HOSPITAL BUILDING TRUST (LIMITED BY GUARANTEE) Oplnlon on other matter prescrlbed by the Companlos Act 2006 In our opinion based on the work undertaken in Ihe course of our audlt the information given in the Trustees, Annual Report for the financial year for which the financial statements are prepared is consistent with Ihe financial statements., and the Trustees, Annual Report has been prepared in acwrdance with applicable legal requirements. Matters on which we are roqulred to report by exception In light of the knowledge and understanding of the Charitable Company and its environment obtsined in the course of the audil, we have not identified material misstatements in the Truslees, Annual Report. We have nothing to report in respect of the followina matters in relation to which the Companies Act 2006 requires us to report tc you if, in our oplnlon: adequate accounting records have not been kept, or retums adequate for our audil have not been received from branches not visited by us,. or Ihe financial statements are not in agreement with the accounting records and returns,. or certain disclosures of Trusle8s' remuneration specified by law are not made. or we have not received all the information and explanations we require for our audit. Ihe trustees wer@ not enlilled to take advantage of the small compani8s' exemption in preparing the Twstees, Annual Report and take advantage of the small Gompanies exemption from the requirement lo prepare a Strategic Report. Responsibilities of the Trustees As explained more fully in the Trustees. Responsibilities Slatement set out on page 7, the trustees (who are also the directors of the Newbury & That¢ham Hospitsl Building Trust for the purposes of Company law) are responsible for the preparation of a trustees, annual report and financial statements and for being satisfied that they give a true and fair vlew, and for such intemal control as the trustees determine is necessary lo enable the preparation of financial staterngnts that are free from material misstatement, whether due to fraud or error. In preparing the financial statements. the trustses are responsible for assessing the eharllable companvs abilty to continue as a going concem, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to Ilquidale the charitable company or to coase operations, or have no realistic allernalive bul lo do so. Audbtor's respon$ibilltles for the audit of the flnan¢ial statements Our objectives are to obtaln reasonable assurance about whether the financial statements as a whole are free from malerial misstatement, whèther due to fraud or error, and to issuè an auditor's report that includes our opinion. Reasonable assurance is a hlgh level of assurance, but is not a guarantee that an audil conducted in accordance with ISAS IUKI will always detect a material misststement when it exists. Misstalements can arise from fraud or error and are considered materSal if, individually or in the aggregale, they could reasonably be expected to influence the economic de￿$[onS of users taken on the basi$ of these financial stslements. Irregularities. including fraud, are in5tanrRs of non-compliance with laws and regulations, We design procedures in line with our responsibilities, OLrtlined above, to delect material misstatements in respect of irregularities, in¢luding traud. The specifie procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud is detsiled below.. Page 9 INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF NEWBURY & THATCHAM HOSPITAL BUILDING TRUST {LIMITED BY GUARANTEE) We have considered: the nature of the charity and sector, control environment and operating performance. the charity's own assessment, including assessments made by key management, of the risks that irregularities may occur either as a result of fraud or error., any matters we identified having reviewed the charity's policies and procedures relating to: identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance. detecting and responding lo the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud,. and Ihe intemal controls established to mitigate risks of fraud or non-complian¢e with laws and regulations. the matters discussed amongst the audit engagement team. As a result of these procedures, we considered the opportunities and incentives that may exisl within the organisation for fraud and identlfied the greatest potential for fraud in the areas in which management is required to exercise significant judgement, such as the recognilion of income and provisions. In common with all audits under ISAS {UK), we are also required to perform specific pro¢edures to respond to the risk of management override. We also obtained an understanding of the legal and regulatory framework that the charity operates in, foGusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context were the Companies A¢1, Charities Act and tax leglslatlon. Because of the inherent limitations of an audit, there is a risk that we will not delect all irregularities, including those leading to a material misstalement in the financial statements or non