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2023-03-31-accounts

bright northumbria healthcare charity annual report and accounts 2022-23 olu, .'eer

head of charity foreword

“

During the past year, the charity has slowly begun to re-set following the difficult years of the pandemic. Although general donations have been down in comparison with previous years, this has been more than made up for by a substantial increase in

legacies, thanks to supporters who left generous gifts in wills. Additional grants from NHS Charities Together also meant that the charity could develop many projects that improved the patient experience and supported staff welfare.

Each year the Northumbria charity delivers programmes that really make a difference to our patients and staff,

Brenda Longstaff, Head of Charity

and we have developed strong links with our local communities to support wellbeing and combat health inequalities.

We could not do, all that we do, without our many supporters who enable us to go that extra mile to enhance our services.

Thank you!

contents

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02 head of charity 33 statement of trustees
foreword responsibilities
04 message from chair 34 foreword
independant auditors
06 objectives and activities 35
report
08 year in numbers 39 statement of financial
activity
10 our programmes 40 balance sheet
20 our partnerships 41 accounting policies
notes to the financial
22 our community 47 statements
26 financial review
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message from the chair of northumbria healthcare

I am delighted to introduce to you the Annual Report of our Bright Charity.

Tyneside. Our hard-working NHS teams are always looking at the best way of using these funds so we can add the extra comforts and amenities that are not able to be provided by core NHS funds.

It has been another period of challenge and change for the NHS as we continue to recover from the pandemic and recalibrate our services to meet the needs of the public. NHS charities and volunteers across the country played a huge part in the national response and continue to adapt as we move into this new period.

In this period the funding Bright has been able

to channel into the healing arts work feels very important as does the investment in staff health and wellbeing support.

As Corporate Trustees we are very grateful to everyone who makes Bright so successful in supporting local people and I would like to say thank you to everyone who has been working to administer the charity during such a difficult time. However, none of this would be possible without the generosity of all our donors and fundraisers who have done so much for us over the past year.

The specially designed expressing rooms to support new mums returning to work are another example of how Bright has been able to provide facilities at our hospitals this year. Charity funding has also helped the trust train hundreds of NHS staff in D/deaf awareness which is much needed in our local communities.

The funds which have been received will make a great difference to patient care in so many ways across Northumberland and North

The recovery from the pandemic has seen us change the way we operate in many ways but I’m pleased to say that we have now started to see volunteer numbers increase again and would like to thank everyone who gives their time for the selfless and valuable service they provide.

Thank you again to everyone who has raised funds or donated to the Charity and to all volunteers who have given their time to provide improved services for our patients.

Sir Paul Ennals CBE Chair of Northumbria Healthcare

Sir Paul Ennals CBE

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objectives and activities

The governing documents for the funds consist of a declaration of trust dated 18 May 2000.

Key Objectives

Categories of spend approved by Corporate Trustee

The governing document states the charity’s principle objective as being:

“… for any charitable purpose or purposes relating to the National Health Service”.

More specifically, the charity aims to support charitable initiatives, which would not normally be financed by NHS exchequer funding, to enhance and add additional value to the delivery of healthcare to the residents of the Trust area.

Patient and staff welfare –

to provide additional comforts, over and above that which would be provided as standard by the NHS, to enhance the patient and staff experience.

Medical equipment –

to ensure that our patients have access to the latest technology and that additional equipment is made available to improve the patient experience and support members of staff who are delivering their care. Charitable funds cannot be used to purchase or replace core NHS equipment.

– Patient environment

to deliver a high-quality healing arts programme in collaboration with patients, staff, volunteers, and the local community, to improve the hospital environment. To use the arts to develop and deliver high quality interior design projects for areas of special need and sensitivity, that help to support the needs of patients and their relatives. To work with architects and designers to integrate the arts to enhance patient and staff experience.

Staff education –

to support professional development of members of staff in terms of attendance at speciality events, and allow access to training that would not normally be funded through standard funding streams. The charity cannot support requests from individuals for funding for professional qualifications.

Research –

to support a continuous programme of research, which aims to improve treatment for thousands of patients across the NHS. To promote innovation and service improvement through providing a platform for staff to share ideas.

Health Inequalities –

to add value to ongoing public health work by the trust to tackle health inequalities affecting our patients.

– CSR

to create opportunities to engage with local communities in keeping with the trust’s Community Promise.

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our year in numbers £1.180.000 amount of donations and legacies Bright Charity received 333.000+ customers at our Northumbria Volunteer Service (NVS) cafélshops £118.742 total of 82 Charity Development Group (CDG) bids approved IOOO+ staff. patients and visitors were provided live music performances 700+ g ifts delivered to patients on Christmas Day 330+ volunteers returned after Covid 300+ 42,000 IOOO+ people attended our Haltwhistle Centenary Celebrations volunteer hours worked individual medical ttems donated to Kilimanjaro Medical Centre 346 members of staff took part in art activities 150 patient. staff and community projects delivered in 2022 Smashed y P 150 members of staff attended Breakfast at Tilbury's event IOO'S of preloved school uniform collected and delivered to the local community Oryh Run fol 100 children sang in our hospitals 13 60 I000's volunteers engaged in global health projects refurbished rooms across the trust people ran for Bright in the Great North Run IGNRI of staff and patients benefited from visits from Wag & Company our doggy on prescription service 24 Global health projects delivered including urns. laparoscopic. AMS/pharmacy, first aid. orthopaedics. medical electronics and stroke

our programmes

Northumbria Volunteer Service

Our Northumbria Volunteer Service is an integral part of the Northumbria family, with volunteers engaged in a variety of roles to support services, patients, and staff.

Patients in oncology were able to access the hair loss therapy service and complementary therapies run by volunteers. The volunteers were back!

Sadly, the pandemic significantly impacted upon volunteer numbers, as all volunteers over 70 years of age were required to step back from duties. At the end of the pandemic, where once there had been almost 1000 volunteers across the trust’s 10 hospitals, numbers had reduced to less than 300. However, throughout the year numbers have begun to increase, as members of the public, and their families, become more confident about returning to a healthcare environment.

Volunteers also helped out at the staff winter vaccination hubs providing a smiling face as meet and greet and ensuring that queues were moving along with a lot of bubbly conversation to ease the process.

This meant that volunteers were able to return to the wards once again. Young volunteers recruited from local high schools followed, and corporate volunteers returned to their pre-covid roles.

Throughout 2022 numbers of customers began to increase across the NVS shops and cafes, once again, generating income to support projects at hospital sites.

Our volunteers provide their time and energy to support our trust. Their contributions are highly valued and each year we make sure they know how much they mean to us by celebrating Volunteer Week, Long Service awards and a Volunteering Evening that enables them to meet up socially for a special celebration.

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Healing Arts Programme

For more than 20 years the Bright charity has managed and developed an award-winning healing arts programme that has transformed our hospitals and provided a welcome distraction for patients, staff, and visitors.

The programme provides a strong connection to our communities too, as we work with local schools, colleges and universities, local artists, performers, and of course our staff and patients.

During the year we worked with staff on a Creativity and Wellbeing project with a focus on mental health. Members of staff astounded us with their talents in painting, sculpture, photography, craft making and storytelling. Their work was professionally photographed to create an exhibition which is proudly displayed on the corridor leading to our Staff Health and Wellbeing Centre at the Northumbria Specialist Emergency Care Hospital in Cramlington.

In May, a photography masterclass with award-winning photographer Ikuko Tsuchiya was organised for staff who were shortlisted from a staff photography competition.

In July we celebrated the NHS’ birthday with live music performances across the trust and a cream tea for our patients on the wards.

During the pandemic, the charity worked with Berwick Academy to develop a graffiti inspired project based on the theme of health and wellbeing – physical health, emotional health, and mental health. Students worked on the project at home during lockdown and were proud to see their work displayed on the hoardings that circled the hospital under construction.

With covid restrictions easing in public areas, it was possible to re-start the Christmas music programme and enjoy a week-long programme of events across the trust. The first concert was held at Hexham General Hospital on Friday 25 November with children from Prudhoe West Academy singing in the outpatient waiting area and showing off some great choreography to get people in the Christmas mood.

At the beginning of 2023, the top 20 photographs from more than 400 entries to the staff photography competition went on display on the hoarding around the new Health and Care Academy under construction at Cramlington. The contractor, Assura, sponsored the exhibition which is still being enjoyed by hundreds of people each week as they drive past the site.

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Environment

When our patients, staff and visitors enter our hospitals it is important that they are not overwhelmed by the starkness of a clinical environment. That is why over the years, the charity has developed a healing arts programme to use art as a point of interest and distraction.

Staff using the room have said it’s a little piece of heaven which is just for them. Where previously they had to try to find a quiet and private place in a busy hospital, they now have a dedicated space with no fear of being disturbed.

Many wards had tired and unwelcoming family rooms. A series of low-cost refurbishments took place and the family rooms on Ward 4 and Ward 8 at the Northumbria Specialist Emergency Care Hospital were the first to receive the makeover. This was particularly important for Ward 4 where patients sometimes struggle with the clinical environment. The only problem then, was getting people to leave the room so that others could enjoy!

During the pandemic it became clear that the oppressiveness of social distancing, visiting restrictions and heightened clinical activity made the quality of the environment much more important for wellbeing. The charity listened to patients, families and staff groups and responded to the need to create special supportive spaces, using warm colours and comfortable furniture, for staff and families to use as a place to reflect and decompress.

When the outpatient department at North Tyneside General Hospital contacted the charity for help with their quiet room in the Breast Clinic, the charity team had a lot to consider. This room is used for counselling and psychological support when patients have initial investigations and follow up conversations after treatment. Staff were keen to provide the very best of care for their patients – but the environment was working against them. Everyone is now delighted with the new look and feel of the room.

Feedback was overwhelmingly positive, and we learnt that with just a few modest changes, rooms could be transformed to become a welcome haven from the hectic activities of a busy hospital.

During 2022 the infant feeding co-ordinator for the trust approached the charity to design and furnish rooms across the trust that had been set aside as expressing rooms to support mothers returning to work following maternity leave. A grant from NHS Charities Together helped this to happen.

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Expressing room
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The rooms were
tired and dated.
They offered
no comfort or
support.
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Before and after in Ward 4 at The Northumbria

Feedback has been very positive, and patients and staff feel the environment helps to support them during a difficult time.

Breast clinic room before and after

Clinical Psychologists, working hard during the pandemic to provide staff counselling sessions, asked for help to update and refresh their consultation rooms. Now staff at three of the trust hospitals can receive support from the psychology team in a more relaxing, comfortable, and supportive environment.

Our staff have also benefitted from an investment by the charity towards the provision of gyms across the trust to support staff wellbeing.

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Psychology rooms
before and after
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D/deaf awareness

Since 2018 the charity has supported an innovative programme to develop the understanding of our staff about the needs of our D/deaf patients. The classes run by Margaret Robertson draw on her own experiences of raising her children, one hearing and one deaf.

As a BSL Level 5 instructor she has also been able to provide an introduction to British Sign Language, and more than 1,000 staff have already enthusiastically taken part in the training. They each receive a special badge to attach to their lanyards, so that when they pass someone who is wearing the badge, they can sign their name and say hello.

During Deaf Awareness week in May, video clips were posted on social media each day to raise awareness of issues faced by our patients, and staff, who have hearing loss. They proved to be very popular and promoted a lot of interest and discussion, not only across the trust, but also within the communities we serve.

Bespoke classes began to be developed at the request of different departments who wanted their teams to be able to provide the best possible service to their patients. Training was developed after shadowing staff to observe

the work they do. This helps staff to better understand how to communicate with their D/ deaf patients, through different stages of their treatment, and put them at ease.

The charity also recognises Usher syndrome day on 2nd March each year, working with leading advocate Jo Milne to raise awareness of deaf blindness. The Bright charity worked with Jo to produce an educational film about Usher syndrome which has now been shared across the NHS.

A staff survey, undertaken to consult with our staff who have hearing issues, raised one important question: how do staff identify themselves as deaf or hard of hearing? Following the survey, D/deaf cards were designed and produced for staff to be able to show to other staff, and patients, so that they could understand their needs. Staff now contact the trust’s D/deaf awareness officer for advice and support about various issues in relation to D/deaf awareness that are being presented to them by both colleagues and patients throughout the trust.

Working with the D/deaf Awareness Officer, the charity was able to pilot a remote video interpreter for the emergency department at Cramlington. The unit was able to give quick and easy access to an interpreter to enable D/deaf patients to understand what was happening and what the attending doctor was saying. At a time of great personal stress, instant access to an interpreter was essential to guide discussions and obtain patient consent for treatment.

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International

At the end of 2022 we returned for the first time following the pandemic to continue development of the burns service. Plastic surgeons Jeremy Rawlins and Chris Lewis worked alongside KCMC surgeons and registrars to undertake life-changing reconstructive surgery cases which returned mobility to patients with severe burns.

For more than 20 years, Northumbria Healthcare has worked in partnership with Kilimanjaro Christian Medical Centre, helping to develop healthcare services for the people of Tanzania.

The partnership brings many benefits back to the NHS in terms of cultural awareness, leadership development and global health knowledge.

The team also delivered first aid and fire prevention training to local school children to build knowledge and awareness of burn injuries in the community. The children loved getting involved in the role play, chasing each other with the fire stick and bandaging their make believe burn injuries.

Each year our volunteers, who use annual leave to visit Tanzania, focus on projects that have been selected by the hospital directors as areas for development.

For the past few years, funding from the Fleming Fund and UK Aid has enabled us to participate in the Commonwealth Partnerships for Antimicrobial Stewardship project. This important project enables sharing of skills and knowledge between countries to combat the global challenge of antimicrobial resistance. The project currently brings pharmacists together across five hospitals and universities in Tanzania.

Intensive Care nurse Peter Smith, was also invited by the Regional Police Commissioner, to provide First responder training for motorcycle taxi drivers (boda boda) in rural accident hotspots. The skills learnt would enable the drivers to undertake basic care of people at accident spots, in preparation for a long journey to obtain medical support.

For Chris Halcrow, the trust’s Chief Medical Engineer, it was to be his first visit. He worked alongside KCMC engineers to service medical equipment and was absolutely amazed at their skill in developing workaround solutions when spare parts could not be found. The teams were delighted with the new tool boxes donated by the Bright charity.

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our partners

Over the years the trust has developed strong working partnerships with a number of organisations, which bring added value to our communities.

Newcastle Eagles

We are partners with the Newcastle Eagles basketball team who, through their successful Hoops4Health programme connect with more than 150 schools across Northumberland and North Tyneside. We link with their programme to gain access to more than 1,000 children each year with important health messages. Over the years the team has been able to discuss a variety of topics with the children including diabetes, dental health and mental health using materials provided by Northumbria Healthcare. It’s a great way to connect with children – and who wouldn’t want to listen to a professional basketball player, especially if he’s 6’10!

As part of the programme, children are invited to take part in an arts competition to provide some fun artwork for our hospitals. The dental health theme was particularly amusing, especially the size of teeth drawn on the pictures of doctors.

As an added feel-good factor, the Eagles invite a group of hospital volunteers to present prizes at the Hoops4health junior finals. They really enjoy being part of such a happy event

Wag & Company

We also partner with the dog befriending charity Wag & Company. For a number of years, the charity provided volunteers and their dogs to visit elderly patients at home, especially those who used to have a dog and were no longer able to look after them. The regular visits, recommended by community healthcare staff, bring great joy to those who are often socially isolated and lonely.

During and after the pandemic Wag & Company’s volunteers, and their dogs, visited our staff in the restaurants at our hospitals, providing a welcome ray of sunshine at a difficult time. Their visits continue to be popular and are great for staff morale. Whitley, the cockapoo, even has his own Instagram page.

Charlotte Tillbury

Our staff are also very lucky to enjoy regular opportunities to have Breakfast at Tilbury’s at Fenwick’s store in Newcastle. The Charlotte Tilbury beauty chain approached the trust to offer breakfast and make up advice, to say thank you to NHS staff. Each month, hundreds of staff enter a prize draw to win a place.

Through NHS Charities Together we also partner with two local Starbucks stores and regularly meet with them to discuss fundraising opportunities.

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our community

With the launch of Northumbria Healthcare’s Community Promise in 2021 www.northumbria.nhs. uk/about-us/our-community-promise the charity renewed its focus on community reach and impact, adding value to the trust’s Promise.

Throughout the year we interacted with our local communities, across our large geographical footprint of 500 square miles, linking with fundraisers, community groups, artists networks and people in need.

Our communities are creative and through our award-winning healing arts programme we have been able to work with some incredible artists, amazing schoolchildren and community groups who do so much to support the NHS.

In the former mining village of Ashington we were delighted to work with the Ashington Veterans and Elders Institute. Throughout the year, and during the pandemic, they had made and sold brightly painted wooden flowers and butterflies, raising several thousands of pounds which was donated to their local hospital, Wansbeck General. As Ashington is the home of the famous Pitman Painters, it was lovely to see the tradition continuing.

As summer approached, we launched our school uniform appeal, linking in with Northumberland and North Tyneside Councils to donate pre-loved uniform to be distributed across our area.

Collection boxes were set up across all of our hospital sites and within a couple of weeks were brimming with donations. The charity team ensured that our staff were also able to benefit from the appeal, which helped to lessen the financial burden of the new school year on families across our region.

At Hexham General Hospital staff were delighted with generous gifts of plants by Wylam Nursery, which brightened up the flower beds. The nursery also generously provided hundreds of individual plants as a thank you to staff. This was such a lovely gesture and really boosted staff morale.

At the end of 2022 we were fortunate to be able to display a light installation made by local artist disability group Northern Butterflies. The artworks had been previously featured in Durham’s Lumiere festival and were installed at our Northumbria Specialist Emergency Hospital for staff to enjoy during the dark winter days.

On 26 August, Haltwhistle Memorial Hospital celebrated its centenary. The charity worked with hospital staff and the League of Friends to organise a day of celebration.

Members of staff, past and present came together to reflect on the achievements of the hospital and the important role that it had played in the community. Many stories were told, including how before the hospital came into existence, a miner with a crushed leg had been taken to the local rail station to wait for the next train to Carlisle! A fete was also arranged within the park below the hospital and hundreds of local schoolchildren and their families enjoyed a day of fun – and free ice cream. It was a real community celebration.

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charity development groups (CDG)

Our site Charity Development Groups were set up in 2001 to provide a focal point for general donations to our hospitals, funding from legacies, and the profits from our Northumbria Volunteer Service (NVS) cafes and shops.

Each of our acute hospitals has a site CDG that provides an opportunity for staff to ask for funding for projects, or ideas, that can make a difference to our patients. The concept is very similar to Dragon’s Den, although it’s much friendlier!

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FINANCIAL REVIEW

Reserves and Investments

Finance Review

The net assets of the Charitable Funds as at the 31st March 2023, were £4,674,000 (31 March 2022 £4,097,000).

Unrestricted funds decreased by £114,000 to £2,248,000 whilst restricted funds increased by £691,000 to £2,426,000.

Overall net assets increased by £577,000.

Receipt of restricted legacies was the main factor behind the increase in restricted fund balances.

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Income Source 2022/23 % 2021/22 %
Donations £197,000 9 £232,000 20
Legacies £983,000 43 £105,000 9
Charitable Activities £966,000 43 £753,000 64
Investment Income £117,000 5 £83,000 7
Total £2,263,000 100 £1,173,000 100
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Expenditure during 2022/23 totalled £1,533,000 and the “Contribution towards the NHS” in the form of charitable grants totalled £480,000. This expenditure relates to medical and other equipment purchases such as IT and furniture to enhance patient and staff welfare.

The remaining expenditure comprised the costs of purchasing goods to be resold in the charity run on site hospital shops and administrative and support costs.

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Total Expenditure 2022/23 % 2021/22 %
Purchase of new equipment £74,000 5 £81,000 7
New building and refurbishments £14,000 1 £43,000 4
Patient education and welfare £337,000 22 £153,000 14
Staff Education and welfare £30,00 2 £24,000 2
Information technology £4,000 0 £0 0
Grants to other charities £21,000 1 £16,000 1
Support costs and overheads £186,000 12 £79,000 7
Fundraising Costs £75,000 5 £56,000 5
NVS Shop purchases and overheads £792,000 52 £650,000 60
Total £1,533,000 100 £1,102,000 100
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The current level of reserves is £2,902,000 which is an increase of £801,000 from 2021/22. The increase was attributable to the level of legacy income received in the year. Plans are being made to spend these legacies in line with the donors’ wishes.

The Trustee has established a Reserves and an Investment Policy to achieve its aim of supporting a healthy future by assisting the long-term future of Bright Charity.

The reserves policy has the objective of retaining sufficient funds to cover the known commitments and future plans of the Charity. Trustees consider that in the medium term it should be the aim that reserves should be not less than 12 month’s noncommitted expenditure and not greater than 18 month’s non-committed expenditure. This would currently equate to reserves of approximately £800,000 to £1,200,000.

The investment policy which the charity operated during 2022/23 was established in July 2013 and last reviewed by the Charitable Funds Committee in March 2023.

The main objectives of the investments are;

The Trustees consider that this level of reserves is consistent with applying income on a measured, planned and coordinated basis. The level of reserves is reported to the charitable funds committee on a quarterly basis. In the short term the Trustees consider that a level of reserves significantly greater than this amount is acceptable as it provides the charity with an appropriate level of investment income.

The Charity seeks to invest ethically and ensure that its investments are not opposed to the objects of the Charity. Therefore, the investment policy eschews, as much as practicable, investments in tobacco and alcohol related holdings.

Appropriate action to establish or maintain reserves at the required level will be decided upon by the committee. The Charities Development Lead conducts an annual review of the spending strategies of individual funds in order to monitor and ensure these funds fit in with overall reserves policy.

Northumbria Healthcare NHS Foundation Trust has no authority over the investments which the Charity holds.

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Investments 2022/23 2021/22
COIF - historical book cost £2,899,000 £2,199,000
Opening Unrealised gain £711,000 £492,000
Additions in year – book cost 0 £700,000
Unrealised gain – in year 0 £219,000
Unrealised loss – in year (£153,000) £0
Closing Unrealised Gain £558,000 £711,000
Market value at 31 March £3,457,000 £3,610,000
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with a representative from CCLA to discuss the general investment climate and outlook, and reviews the charity’s investments accordingly.

Investments are recorded at market value as at 31st March 2023. No other investments are held.

The Charitable Funds Committee meets annually

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FINANCIAL REVIEW

Risk Management

The Corporate Trustee has identified the major risks to the charity which can be summarised as:

  1. That the charity is not operating within its objects as defined in the charity’s governing document

  2. That accounting transactions are inappropriately or inadequately reported.

  3. Expenditure is inappropriately high resulting in a faster depletion of funds than approved by the Corporate Trustee.

  4. That expenditure is inappropriately low resulting in lost opportunities for charitable funds

  5. Investments are not properly safeguarded, resulting in loss of funds.

The Corporate Trustee has established systems to ensure that these risks are kept at a minimum. Namely:

  1. A Charitable Funds Strategic Committee which reviews policy, financial activity and investment performance. The members of the committee are all Executive and Non-executive directors of the Trust.

  2. The existence and compliance with Standing Financial Instructions.

  3. An adequately qualified and resourced finance function

  4. The establishment of internal financial control systems which are reviewed annually by an Internal Audit department.

  5. Reporting and review of audit findings to an Audit Committee.

  6. Annual audit of systems and accounts by external auditors.

During 2023 CFSC commenced work on the development of an updated Risk Register which follows the format used by the Northumbria Healthcare Foundation Trust. This work will be completed in the 2023/24 financial year.

Our future plans

The charity plans to continue to build on its partnerships within the community to help support our patients and staff. It will also look to continue strengthening its work in relation to health inequalities/public health and corporate social responsibility.

The charity also plans to review its governance procedures including its committee structures, to ensure that they continue to meet the charities needs and are fit for purpose.

The charity’s charitable expenditure will continue to be determined by the needs of the Trusts hospitals and community services and will be monitored by categorising expenditure into the following areas of spend:

Based on the Accounts for the financial year the Trust Board, on behalf of the Corporate Trustee, believes that the Charity can meet all its current and future foreseeable commitments.

The Charity has a Corporate Trustee: Northumbria Healthcare NHS Foundation Trust (the Trust). Bright is a registered member of the Fundraising Regulator and adheres to the Codes of Fundraising Practice.

Charity Information

Governance and Management

Members of the Trust Board who have acted on behalf of the Corporate Trustee are members of the Charity Board of Trustee with voting rights. In 2022/2023 these members were:

The Northumbria Healthcare NHS Trust Charity was registered with the Charity Commission as an NHS Umbrella Charity by Declaration of Trust in May 2000, Charity number 1083122. In 2011 was decided to adopt the brand name of ‘’Bright Northumbria’’.

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Name Title
Sir James Mackey Chief Executive
Birju Bartoli Executive Director of Performance and Improvement
Paul Dunn Executive Director of Finance
Kate Thompson Executive Director of People and OD
Jeremy Rushmer Executive Medical Director
Marion Dickson Executive Director of Nursing and Midwifery
Alistair Blair Executive Medical Director – Clinical Innovation
Claire Riley (to 22nd April 2022) Executive Director of Communications and Corporate
Affairs
Name Title
Alan Richardson Chair (to 31 August 2023)
Paul Ennals Chair (from 1st September 2023)
Margaret Rowe Non-Executive Director (from 4th September 2023)
Martin Knowles Non-Executive Director (to 1st September 2022)
Moira Davison Non-Executive Director
Bernard McCardle Non-Executive Director
Sir Alan Craft Non-Executive Director
Ruth Connorton Non-Executive Director
Andrew Besford Non-Executive Director
Stephen McKinlay Non-Executive Director
Philip Lobb Non-Executive Director
Richard Dale Non-Executive Director (from 1st August 2022)
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FINANCIAL REVIEW

The Corporate Trustee of the charity acts through the decisions and actions of the executive and nonexecutive members of Northumbria Healthcare NHS Foundation Trust Board. Where statute permits, the Board delegates authority for the review of strategy, activity and compliance to a sub-committee of the Board called the Charitable Funds Strategic Committee, the ‘CSFC’.

In particular the CSFC is required to:

In order to ensure the committee always acts in the interests of the charity rather than the NHS corporate body, representatives of both staff and public governors are co-opted onto the committee in a non-voting capacity to observe and to contribute to the decision-making process.

The Charitable Funds Strategic Committee comprises the following members:

Three Non-Executive Directors (One member is nominated as Chair and a second is nominated vicechair of the committee)

No member of the Trust Board received remuneration from the Charity during the year. The Trust Board is remunerated by the Trust for their role as Executive and Non-Executive Directors of the Trust.

The charity is constituted of approximately 233 individual funds (2021/22: 232) as at 31 March 2022 and the notes to the accounts distinguish the types of funds held and disclose separately all material funds.

Operating below the Charitable Funds Committee are nine Charity Development Groups (CDGs) dividing the Trust’s area into six geographical areas plus a group for research funds, a group for Trust wide charitable initiatives managed by the CFSC and a group for Community based initiatives.

There is a central budget for administration (including finance, publicity and audit costs) which is funded from investment income.

CDGs have funds allocated from reserves and from any unrestricted donations, fundraising proceeds and legacies that are received. Any member of staff is invited to bid for funds to finance equipment or projects which meet the objects of the charity. CDGs are an open forum with all staff and other interested parties e.g. voluntary groups, invited to attend and contribute. Each group meeting is chaired by a non-executive director. After discussion, funds are allocated to bids on a consensus basis.

For day to day operational and management purposes the charity is further divided into some 220 funds. The notes to the accounts distinguish the types of accounts held and disclose separately all material funds. These are managed by Trust officers such as Heads of Service and Ward Managers who have delegated authority to apply the funds within the objects of the charity.

The Corporate Trustee does not set detailed budgets for the charity’s activities except occasionally in the case of specific projects. Instead, responsibility is delegated to the managers of each fund. Upon request managers of funds are required to submit annual fundraising and spending plans for review by the Charitable Funds Committee.

The CFSC regularly monitors fund balances to ensure that funds do not go into deficit, or if they do, to ensure that funds are brought back into surplus as soon as possible. In addition. the Charitable Funds Committee monitors the funds that are available for Charity Development Groups to expend and arrange for the timely deployment of these funds.

Activities

Bright ensures that all activities carried out to raise funds are in line with the Fundraising Regulator and Codes of Practice and the Charity’s internal processes and policies. The Team are aware of donor’s wishes ensuring that these are honoured and communicated with the donor. In the year 2022/23 we received no complaints. The Charitable Funds Team have mandatory training each year on safeguarding for vulnerable adults and this is then integrated into supporting vulnerable donors to ensure they are protected.

Public benefit

The Trustees confirm they have paid due regard to Charity Commission guidance on public benefit in deciding what activities the Charity have undertaken during the year and have continued to support a wide range of charitable activities. These include charitable grant funding for the Trust and fundraising across a number of platforms to raise more funds.

In awarding grants the Trustee is aware of its responsibilities under charity law in ensuring the maintenance of public benefit in all aspects of its work. Funding patient and staff welfare, improvements and amenities is, by definition, meeting public benefit.

Northumbria Healthcare NHS Trust is the main beneficiary of the Charity and is a related party by virtue of being the Corporate Trustee of the Charity. However, when the Trust Board is making decisions regarding the Charity it does so with the best interests of the Charity in mind and with consideration of Charity Commission guidance, Charity law and the expressed wishes of donors. By working in partnership with the Trust, charitable funds are used to best effect for the benefit of patients and staff. When deciding upon the most beneficial way to use funds, the Corporate Trustee has regard to the main activities, objectives, strategies and plans of the Trust.

Reference and Administrative Details

Registered and Working Name Bright Charity

Registered Charity Number

1083122

Registered Address

North Tyneside General Hospital Rake Lane North Shields NE29 8NH

Auditors

Robson Laidler Accountants Limited Fernwood Road Jesmond Newcastle upon Tyne NE2 1TJ

Bankers

Government Banking Service c/o Royal Bank of Scotland 200 Bishopsgate London EC2M 4NR

Legal Advisors

DAC Beachcroft LLP Central Gallowgate Newcatle upon Tyne NE99 5AA

Investment Managers

CCLA

St Alphage House 2 Fore Street London

30

31

thank you to all our supporters who made it possible for us to do so much

Northumbria House, 7/8 Silver Fox Way, brightcharity@northumbria.nhs.uk Cobalt Business Park 0191 203 1354 Newcastle upon Tyne, NE27 0QJ

Bright Charity Registered charity number 1083122

Statement of Trustees’ responsibilities in respect of the Trustees’ annual report and the financial statements

Under charity law, the trustees are responsible for preparing a Trustees’ Annual Report and the financial statements in accordance with applicable law and regulations. The trustees are required to prepare the financial statements in accordance with UK Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland.

The financial statements are required by law to give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources for that period.

In preparing these financial statements, generally accepted accounting practice entails that the trustees:

The corporate trustees are required to act in accordance with the trust deed of the charity, within the framework of trust law. They are responsible for keeping accounting records which are sufficient to show and explain the charity’s transactions and disclose at any time, with reasonable accuracy, the financial position of the charity at that time, and to enable the trustees to ensure that, where any statements of accounts are prepared by them under section 132(1) of the Charities Act 2011, those statements of accounts comply with the requirements of regulations under that provision. They are responsible for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error, and have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the charity and to prevent and detect fraud and other irregularities.

The corporate trustees are responsible for the maintenance and integrity of the financial and other information included on the charity’s website. Legislation in the UK governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

33

NORTHUMBRIA HEALTHCARE NHS FOUNDATION TRUST FUNDS HELD ON TRUST ANNUAL ACCOUNTS 2022-23 The accounts of the funds hdd on trusl by the Northumbria Healthcare NHS Foundalion Trust. FOREWORD These accounts have been prepared by the Trustees under section 98(2} of the National Health servi￿ Ad 1977 (as amended) which the Se¢￿tary of State has, with the approval of Ihe Treasury, directed. STATUTORY BACKGROUND The Northumbria Healthcare NHS Foundation Trust is the corF()rate trustee of the funds held on trust under paragraph 16(c) of Schedule 2 of the NHS and Community Care Act 1990 unless Trustees have been appointed under s11 of the NHS and Community Care Acl 1￿. The Northumbria Healthcare NHS Foundation Trust charitable funds are registered with the Charity Commission. MAIN PURPOSE OF THE FUNDS HELD ON TRUST The main purrose of the charitable funds hekl on trust is to apply income for any charitable purpose relating to the National Health servi￿ wholly or mainly for the services provided by the Northumbria Health(are NHS Foundation Trust. Signed . .. on behalf of the Corporate Trustee Dated......16th January2024............. 34

Independent auditor’s report to the trustees of Northumbria Healthcare NHS Trust Charity

Opinion

We have audited the financial statements of Northumbria Healthcare NHS Trust Charity (the ‘charity’) for the year ended 31 March 202 3 which comprise Statement of Financial Activities, Balance Sheet, Statement of Cash flow and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including 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:

Basis for opinion

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

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees’ 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 identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern 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 concern are described in the relevant sections of this report.

Other information

35

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

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

We have nothing to report in this regard.

Matters on which we are required to report by exception

In light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees’ Report.

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

Responsibilities of Trustee

As explained more fully in the trustee responsibilities statement set out on page 33, the trustee is 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 trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

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

36

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 the financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. Based on our understanding of the charity and its activities, we identified that the principal risks of non-compliance with laws and regulations related to the UK tax legislation, pensions legislation, employment regulation and health and safety regulation, anti-bribery, corruption and fraud, money laundering and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements, such as the Charities Act 2011 and the Charities Statement of Recommended Practice.

We evaluated the trustees’ and management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to posting manual journal entries to manipulate financial performance, management bias through judgements and assumptions in significant accounting estimates, and significant one-off or unusual transactions.

Our audit procedures were designed to respond to those identified risks, including noncompliance with laws and regulations (irregularities) and fraud that are material to the financial statements. Our audit procedures included but were not limited to:

Our audit procedures in relation to fraud included but were not limited to:

There are inherent limitations in the audit procedures described above and the primary responsibility for the prevention and detection of irregularities including fraud rests with management. As with any audit, there remained a risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal controls.

37

A further description of our resFX)nsibiltlles fDr the audil of the financial statements is located on the Financial Reportin9 Council's websrte at hltp-.Ilwww.frc.org.ukJaudrtorsresponsibilities. This description forms part of our audrtorfs reporL Use of the audit report This rep)rt is made solety lo the charty's trustees. as a body, in accordan￿ with Part 4 of the Charilies (Accounts and ReFQrts} Regulations 2008. Our audit work has been undertaken so that we might stale to the charity's tnjstees those mallers we are required lo sia16 to thèm in an auditor's report and for rio olheT purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charty and the charity's trustees as a body, for our audil work, for this re￿1, crf for the opinions wa have fomed. SKJned'. Michaél T Moran BA FCA (Senior Stalulory A￿litOr) For and on behalf of Rob50n Laidler Accountants Limited stalutory AL¥Jitor Femwo¢)l House Femwo(MY Road Jesmond N8wcastle Upon Tyne NE2 1TJ Data: ?1 Tal￿9{ 9oILÈ Robson Laidler Accountsnls Limiied is 81M)ible for app)Int￿nt as auditor of charity by virtue ol ils eligibility for atpointmenl as auditor of a company under sectlon 1212 of the Companies Acl 2006.

Northumbria Healthcare NHS Trust Charity

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2023

Income

Year Ended
2023
Year Ended
2022
Note
Unrestricted
Funds
£000
Restricted
Funds
£000
Total
Funds
£000
Total
Funds
£000
Donations and legacies
2
293
887
1,180
337
Charitable activities
3
21
945
966
753
Investment income
4
56
61
117
83
Total incoming resources
370
1,893
2,263
1,173

Expenditure

Fundraisingcosts 5 75 0 75 56
Charitable activities 6 271 1,187 1,458 1,046
Total resources expended 346 1,187 1,533 1,102
Gains on revaluation of investment assets 8,11 (148) (5) (153) 219
Gains on disposal of investment assets 8,11 0 0 0 0
Totalgains on investment assets (148) (5) (153) 219
Net incoming resources (124) 701 577 290
Gross transfer between funds 10 (10) 0 0
Net movement in funds (114) 691 577 290
Fund balances brought forward at 31 March 2022 2,362 1,735 4,097 3,807
Fund balances carried forward at 31 March 2023 2,248 2,426 4,674 4,097

The notes at pages 41 to 53 form part of these accounts.

39

Norihumbria Healthcare NHS Trusl Charl BALANCE SHEET AS AT 31 MARCH 2023 Jh57 1.529 io Curr•nl asG•ty.' IOBbbr& Sknl treSlm61iS and pc.ts C•sh atbir& •nd if Totsl euN•AtUBBty 21 16 47 li sio 196 241 Cr•Sltors." ArnouM8 l•Min N•t¢urr•nt i$• •J• wAINfi on 39. 17 Fwds¢ll￿¢h•rmY Iwm6 FL 2,361 ,ResIpC￿d otal ¢4ih• c ?.4PG 1426 iJ5 ai oa98s 41 to531om ￿rt￿th￿￿￿tth￿ts leih)￿￿￿ 2QZ4.... 40

Notes to the financial statements for the year ended 31 March 2023

1. Accounting Policies

Basis of preparation

The financial statements have been prepared under the historical cost convention, with the exception of investments which are included at fair value.

The accounts (financial statements) have been prepared in accordance with the Statement of recommended practice: accounting and reporting by charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued in October 2019 and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011 and UK Generally Accepted Practice as it applies from 1 January 2019.

The accounts (financial statements) have been prepared to give a ‘true and fair’ view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a ‘true and fair view’. This departure has involved following Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued in October 2019 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.

The presentation currency of these financial statements is sterling. All amounts in the financial statements have been rounded to the nearest £1,000.

The Corporate Trustee considers that there are no material uncertainties about Nort humbria Healthcare’s charitable funds ability to continue as a going concern. There are no material uncertainties affecting the current year’s accounts.

The charity’s accounts are prepared on a going concern basis. The only obligated expenditure the charity is committed to in the next twelve months is the administration costs of running the charity. There are sufficient reserves to meet this commitment for the foreseeable future.

The Trust constitutes a public benefit entity as defined by FRS102.

The charity’s Corporate Trustee and parent undertaking, Northumbria Healthcare NHS Foundation Trust, includes the charity in its consolidated financial statements. The consolidated financial statements of Northumbria Healthcare NHS Foundation Trust are prepared in accordance with FRS 102 and are available to the public and may be obtained from the Trust website (www.northumbria.nhs.uk). In these financial statements, the charity is considered to be a qualifying entity (for the purposes of this FRS) and has applied the exemptions available under FRS 102 in respect of the following disclosures:

As the consolidated financial statements of Northumbria Healthcare NHS Foundation Trust include the equivalent disclosures, the charity has also taken the exemptions under FRS 102 available in respect of the following disclosures:

As the charity is a wholly owned subsidiary of Northumbria Healthcare NHS Foundation Trust, it has taken advantage of the exemption contained in FRS 102.33A and has not disclosed transactions or balances with wholly owned members of this group.

1.1 Accounting Convention

41

The financial statements are prepared in accordance with the historical cost convention, as modified for the revaluation of certain investments which are included at fair value.

1.2 Income

a) Income is recognised in the statement of financial activities (SOFA) when a transaction or other event results in an increase in the charity’s assets or a reduction in its liabilities. Income is recognised in the accounts of the charity when all of the following conditions are met;

– i) Entitlement control over the rights or other assets to the economic benefit has passed to the charity;

– ii) Probable it is more likely than not that the economic benefits associated with the transaction or gift will flow to the charity; and

iii) Measurement - the monetary value or amount of the income can be measured reliably and the costs incurred for the transaction and the costs to complete the transaction can be measured reliably.

b) Gifts in kind

i) Assets given for distribution by the funds are included in the Statement of Financial Activities only when distributed.

ii) Assets given for use by the funds (e.g. property for its own occupation) are included in the Statement of Financial Activities as income when receivable.

iii) Gifts made in kind but on trust for conversion into cash and subsequent application by the funds are included in the accounting period in which the gift is sold.

In all cases the amount at which gifts in kind are brought into account is either a reasonable estimate of their value to the funds or the amount actually realised. The basis of the valuation is disclosed in the annual report.

c) Donations in kind

Donations in kind (e.g. the provision of free accommodation) is included in the accounts with an equivalent amount in ongoing resources, if there is a financial cost borne by another party. The value placed on such income is the financial cost of the third party providing the resources.

d) Legacies

Pecuniary and residuary legacies are accounted for as income once the receipt of the legacy is probable. This will be once confirmation has been received from the representatives of the estate that payment of the legacy will be made or property transferred, the executors have established that there are sufficient assets in the estate to pay the legacy and all conditions attached to the legacy have been fulfilled. If there is uncertainty as to the amount of the legacy and it cannot be reliably estimated then the legacy is shown as a contingent asset until all of the conditions for income recognition are met.

Income fro m reversionary interest of ‘life interest’ legacies is treated as receivable when conditions associated with the payment have been recognised (e.g. death of a life tenant). Any material assets bequeathed to the charity but subject to a life tenancy interest held by a third party are disclosed in the accounts.

e) NVS Shops

All sales made in the NVS shops are in cash and are recognised at the point of sale. The principal purchases of goods to be sold are paid for on a direct debit basis at the end of each month and hence no creditors are required to be recognised. Any year end inventory in shops is excluded from the accounts as the Corporate Trustee does not consider it to be material.

1.3 Expenditure

Charitable expenditure is expenditure related to the aims and objectives of the charity.

42

All expenditure is accounted for on an accruals basis and has been classified under heading that aggregate all costs related to each category of expense shown in the Statement of Financial Activities. Expenditure is recognised when the following criteria are met;

Irrecoverable VAT is charged against the category of resources expended for which it was incurred.

a) Cost of raising funds

The costs of generating funds are the costs associated with generating income for the funds held on trust.

b) Grants payable

Grants payable are payments made to linked, related party or third party NHS bodies and non NHS bodies, in furtherance of the charitable objectives of the funds held on trust, primarily for the relief of those who are sick. Grant payments are recognised as expenditure when the conditions for their payments have been met or where there is a constructive obligation to make a payment.

A constructive obligation arises when;

The Corporate Trustee has control over the amount and timing of grant payments and consequently where approval has been given by the Corporate Trustee and any of the above criteria have been met then a liability is recognised. However, when they are then those conditions have to be met before the liability is recognised. Where an intention has been communicated, then no expenditure is recognised but an appropriate designation is made in the appropriate fund. If a grant has been offered but there is uncertainty as to whether it will be accepted or whether conditions will be met then no liability is recognised but a contingent liability will be disclosed.

c) Governance Costs

Governance costs are classified as a support cost and therefore have been apportioned between fundraising activities and charitable activities.

d) Support costs

Support costs are those costs which do not relate directly to a single activity. These include some staff costs, costs of administration, internal and external audit costs and IT support. Support costs have been apportioned between fundraising costs and charitable activities on an appropriate basis.

e) Fundraising costs

43

The costs of generating funds are those costs attributable to generating income for the charity, other than those costs incurred in undertaking charitable activities or the costs incurred in undertaking trading activities in furtherance of the charity’s objects.

f) Charitable Activities

Costs of charitable activities comprise all costs incurred in the pursuit of charitable objects of the charity. These costs, where not wholly attributable, are apportioned between the categories of charitable expenditure in addition to the direct costs. The total costs of each category of charitable expenditure include an apportionment of support costs as shown in note 6.

1.4 Investment Fixed Assets

i) Investment fixed assets are shown at market value.

ii) Quoted stocks and shares are included in the balance sheet at mid-market price, ex-div.

iii) Other investment fixed assets are included at Corporate Trustee ’s best estimate of market value.

Investments are a form of basic financial instrument. Fixed asset investments are initially recognised at their transaction value and are subsequently measured at their fair value (market value) as at the balance sheet date. The Statement of Financial Activities includes the net gains and losses arising on revaluation and disposals throughout the year.

Quoted stocks and shares are included in the Balance Sheet at the current market value quoted by the investment analyst, excluding dividend. Other investments are included at the Corporate Trustee’s best estimate of market value.

The main form of financial risk faced by the charity is that of volatility in equity markets and investment markets due to wider economic conditions, the attitude of investors to investment risk and changes in sentiment concerning equities within particular sector sub subsectors.

1.5 Staff and Pension Costs

No staff were directly employed by the charity during the year. Northumbria Healthcare Care NHS Foundation Trust fully re-charged Bright charity for the 12 whole time equivalent members of staff who work full time for the charity. 4 of these staff work in charity management, administration and fundraising with the remaining 8 whole time equivalent staff working in the Northumbria Volunteer Service shops. Some of these staff members belong to the NHS Pension Scheme which is an unfunded defined benefit scheme which is accounted for as a defined contribution scheme. The recharge from the Trust includes the employee contributions to that scheme. For more information on the NHS Pension Scheme refer to the Trust annual report and accounts.

1.6 Structure of Funds

When there is a legal restriction on the purpose to which a fund may be put, the fund is classified in the accounts as:

Restricted funds are those where the donor has provided for the donation to be spent in furtherance of a specified charitable purpose.

44

Endowment funds arise when the donor has expressly provided that the gift is to be invested and only the income of the fund may be spent.

Other funds are classified as unrestricted funds. Unrestricted funds which the Corporate Trustee has chosen to earmark for set purposes are also classified as designated funds. The major funds held within these categories are disclosed on notes 12.1 and 12.2.

1.7 Realised and unrealised gains and losses

All gains and losses are taken to the Statement of Financial Activities as they arise. Realised gains and losses on investments are calculated as the difference between sales proceeds and opening market value (or date of purchase if later). Unrealised gains and losses are calculated as the difference between market value at the year end and open market value (or the date or purchase if later).

45

1.8 Debtors

Debtors are amounts owed to the charity. They are measured on the basis of their recoverable amount.

1.9 Cash and Cash equivalents

Cash at bank and in hand is held to meet the day to day running costs of the charity as they fall due. Cash equivalents are short term, highly liquid investments.

1.10 Creditors

Creditors are amounts owed by the charity. They are measured at the amount that the charity expects to have to pay to settle the debt.

Amounts which are owed in more than a year are shown as long term creditors.

1.11 Related Party Transactions

Northumbria Healthcare NHS Foundation Trust is the corporate trustee of the Bright Charity as well as its main – grant beneficiary they are therefore related parties. Northumbria Healthcare makes a number of clerical and transaction services available to the charity.

These include:

Management and governance services at a cost of £124,000 (£25,000 in 2021/22)

• accountancy and administrative services at a cost of £62,000 (£54 ,000 in 2021/22) in support of the charity’s grant making activities which are included within support costs - see note 7.

None of the members of the NHS Trust Board or parties related to them has undertaken any transactions with the Bright charity or received any benefit from the charity in payment or kind. Board members received no honoraria or emoluments in the year and no expenses paid to them in the year (20021/22 -Nil).

46

Northumbria Healthcare NHS Trust Charity

2. Donations and Legacies

Year Ended
2023
Year Ended
2022
Unrestricted
Funds
£000
Restricted
Funds
£000
Total
Funds
£000
Total
Funds
£000
Donations from individuals
142
30
172
214
Corporate Donations
13
12
25
18
Legacies
138
845
983
105
Total voluntary income
293
887
1180
337

3. Income from charitable activities

Year Ended
2023
Year Ended
2022
Unrestricted
Funds
£000
Restricted
Funds
£000
Total
Funds
£000
Total
Funds
£000
HVS Shops
0
945
945
730
Other
21
0
21
23
Total activities forgenerating funds
21
945
966
753

The above income relates to shops at The Northumbria Specialist Emergency Care Hospital at Cramlington, North Tyneside General Hospital, Wansbeck and Hexham Hospitals and Blyth Hospital.

The shops sell refreshments and general provisions to patients and visitors to the hospital. The shops are staffed principally by volunteers working under the name of the Northumbria Volunteer Service (NVS). In addition to the volunteers there 8 whole time equivalent paid staff working the shops who are direclty employed by the Foundation Trust (paragragh 1.5 Accounting Policies)

All income from operation are made available to the charity and expenditure of the profits is included under Note 6 under charitable activities.

4. Investment income

Total gross income Year Ended
2023
Year Ended
2022
Unrestricted
Funds
£000
Restricted
Funds
£000
Total
Funds
£000
Total
Funds
£000
Investments listed on Stock Exchange
0
0
0
0
Investments in a Common Deposit Fund or Common
Investment Fund
49
53
102
83
Other investments and deposit accounts
7
8
15
0
Total investment income
56
61
117
83

47

Northumbria Healthcare NHS Trust Charity

5. Expenditure on raising funds
Unrestricted
Funds
£000
Restricted
Funds
£000
Total 2023
Total Funds
£000
Total 2022
Total Funds
£000
Fundraisingcosts
75
0
75
56
Total cost ofgenerating funds
75
0
75
56

6. Expenditure on charitable activities
Note
Unrestricted
Funds
£000
Restricted
Funds
£000
Total 2023
Total Funds
£000
Total 2022
Total Funds
£000
Purchase of New Equipment
31
43
74
81
New Buildingand Refurbishment
0
14
14
43
Staff Education and Welfare
20
10
30
24
Patient Education and Welfare
125
212
337
153
IT Equipment and Software
4
0
4
0
Grants to Other Charities
0
21
21
16
Support Costs and Overheads
7
91
95
186
79
Costs ofgood sold - HVS Shops
0
792
792
650
Total cost of charitable activities
271
1,187
1,458
1,046

48

Northumbria Healthcare NHS Trust Charity

7. Allocation of Governance, support costs and overheads

Allocted to cost
of charitable
Raising Funds
activities		 Total 2023 Total 2022
£000 £000 £000 £000
Governance - External Audit 0 6 6 6
Governance - Other costs 0 16 16 19
Totalgovernance costs 0 22 22 25
Financial administration and accountancycosts 0 56 56 52
Direct managerial and operational costs 45 102 147 32
Computer expenses 0 0 0 0
Miscellaneous 30 6 36 26
Total other support costs 75 164 239 110
Totalgovernance, support costs and overheads 75 186 261 135

Financial Services and Governance costs are allocated on the basis of time spent by Trust employees these services to the charity. External Audit fees are a direct cost to the charity

The £186,000 (2022: £79,000) of support costs is included within the Cost of Charitable Activities (Note 6).

The increased costs in the year are due to fundraising staff being in post for a full year (part year 21/22), staff working on specific projects for which additonal external funding has been received.

The charity does not directly employ any members of staff. The governance and financial services used by the charity are provided by employees of Northumbria Healthcare NHS Foundation Trust. The cost of providing these services is recharged to the charity by the Foundation Trust. Costs are calculated on the basis outlined above.

8. Analysis of Fixed Asset Investments

8.1 Fixed Asset Investments Year Ended
2023
Year Ended
2022
Unrestricted
Funds
£000
Restricted
Funds
£000
Total
Funds
£000
Total
Funds
£000
Market value at start ofyear
2,081
1,529
3,610
2,691
Purchased- book cost
0
0
0
700
Netgain on revaluation unrealised
(148)
(5)
(153)
219
Gross transfer between funds
(270)
270
0
0
Market value at end ofyear
1,663
1,794
3,457
3,610

All investments are held primarily to provide an investment return for the charity.

8.2 Market value at 31 March
Total 2023
£000
Total 2022
£000
Investments in a Common Deposit Fund or Common Investment Fund;
COIF Ethical Income Fund 1,648
1,735
COIF Global EquityFund 1,809
1,875
Total fixed assets investments 3,457
3,610

There are no direct investments held outside the UK. Both common investment fund holdings are considered to be material and are disclosed. There are no individual listed investments in fixed asset investments.

49

Northumbria Healthcare NHS Trust Charity

9. Analysis of Debtors

Amounts falling due withinone year Total 2023
Total 2022
Unrestricted
Funds
£000
Restricted
Funds
£000
Total Funds
£000
Total Funds
£000
Accrued income
12
13
25
27
Other debtors
7
8
15
0
Total debtors
19
21
40
27

Accrued income represents income earned but not yet received on investments.

10. Analysis of Creditors

Amounts falling due withinone year Total 2023
Total 2022
Unrestricted
Funds
£000
Restricted
Funds
£000
Total Funds
£000
Total Funds
£000
Trade creditors
0
0
0
39
Total creditors
0
0
0
39

Creditors consist of money owed to Northumbria Healthcare NHS Foundation Trust in respect of goods and services bought by the charity but initially paid for by the Trust

11. Short Term Investments and Deposits

Short term Investments Unrestricted Restricted Total Total
Funds Funds 2023 2022
£000 £000 £000 £000
Market value at start ofyear 0 0 0 0
Netgain on revaluation unrealised 0 0 0 0
Netgain on revaluation realised 0 0 0 0
Proceeds of sale - book cost 0 0 0 0
Proceeds of sale - Realisedgain on disposal 0 0 0 0
Market value at end ofyear 0 0 0 0
Deposits Unrestricted Restricted Total Total
Funds Funds 2023 2022
£000 £000 £000 £000
COIF Deposit account 456 494 950 50
BuildingSocietyAccounts 15 16 31 31
Total deposits 471 510 981 81
Total short term investments and deposits 471 510 981 81

50

Northumbria Healthcare NHS Trust Charity

Analysis of Funds

12. Endowment Funds

The charity held no endowment funds at 31 March 2023 (31 March 2022 - nil.)

Material funds

12.1 Unrestricted Funds Balance 31
March 2022
£000		 Incoming
Resources
£000		 Resources
Expended
£000		 Gains /
(losses) on
Revaluation
£000		 Other
Transfers
£000		 Balance 31
March 2023
£000
Berwick General Fund 36 0 0 (3) 0 33
CardiologyFund(WGH) 53 2 0 (3) 0 52
Caroline's Comet Fund 57 0 0 (3) 0 54
Charisma StudyReseach 47 0 0 (3) 0 44
Chemo Unit Berwick 42 1 0 (3) 0 40
Diabetic Education Fund 44 2 (1) (2) 0 43
Esprit Research Fund 115 0 (52) (8) 0 55
Hexham Cancer Equipment Fund 94 4 (6) (6) 0 86
ITU Trustwide 47 3 0 (2) 0 48
OncologyDayUnit(WGH) 77 19 (2) (3) 0 91
OncologyFund(NTGH) 63 132 (28) (3) 0 164
Palliative Care Northumbria 352 65 (32) (19) 0 366
Parkinson Disease Fund 69 0 (1) (4) 0 64
Profess Research Fund 28 0 0 (2) 0 26
Special Care BabyUnit - Trustwide 28 1 0 (2) 0 27
Tanzania Educational Fund 36 2 (4) (2) 0 32
TeardropProject 98 10 (5) (6) 0 97
WGH Palliative Care(Oasis Room) 36 1 (1) (3) 0 33
Haltwhistle Hospital Fund 62 7 0 (4) 0 65
Hexham Hospital General Fund 204 3 (5) (15) 0 187
Breast Disease Fund 28 0 (2) (2) 0 24
NTGH - Ward 22 Stroke Ward
102		 0 (3) (6) 0 93
PharmacyCharitable Fund 35 6 (7) (2) 0 32
Covid 19 Donations Fund 40 0 0 (3) 0 37
Others 569 112 (197) (39) 10 455
Total unrestricted funds 2,362 370 (346) (148) 10 2,248

The unrestricted funds of the charity are designated funds i.e. there is no legal restriction on the use of the funds however the Corporate Trustee has earmarked the funds to be used for a particular purpose in the future. This purpose is indicated by the name given to these designated funds.

12.2 Restricted Funds
Gains /
Balance 31 Incoming Resources (losses) on Other Balance 31
March 2022 Resources Expended Revaluation Transfers March 2023
£000 £000 £000 £000 £000 £000
Covid 19 Donations Fund 388 0 (40) (1) 0 347
NVS Fund(Blyth) 57 5 (7) (1) 0 54
NVS Fund(Cramlington) 131 398 (299) 0 (79) 151
NVS Fund(North Tyneside) 237 299 (259) 0 (56) 221
NVS Fund(Wansbeck) 59 1 (45) 0 4 19
North Northumberland CDG Fund 364 0 (6) (1) 0 357
North Tyneside CDG Fund 404 714 (94) (2) 46 1,068
CommunityCDG Fund 63 27 (12) (1) 0 77
Blyth CDG Fund 31 133 0 0 0 164
Others 1 316 (425) 1 75 (32)
Total restricted funds 1,735 1,893 (1,187) (5) (10) 2,426

Income and expenditure of the shops staffed by the Northumbria Volunteer Service (NVS) are accounted for within separate funds - the NVS Funds. Periodically in the year any surpluses are transferred to Development Group funds. Expenditure on charitable activities funded by these surpluses is subsequently charged against the Development Group funds.

51

Northumbria Healthcare NHS Trust Charity

12.3 Details of Material Funds

Name of fund Description of the nature and purpose of each fund

Restricted Funds

Covid 19 Donations Fund HVS Fund (Blyth) HVS Fund (Cramlington) HVS Fund (North Tyneside) HVS Fund (Wansbeck) North Northumberland CDG Fund North Tyneside CDG Fund Community CDG Fund Blyth CDG Fund

For donations made in repsonse to the pandemic restricted to specific purposes General purposes restricted to the Blyth area General purposes restricted to the Northumbria Specialist Emergency Care Hospital General purposes restricted to the North Tyneside area General purposes restricted to the Wansbeck area General purposes restricted to the North Northumberland area General purposes restricted to the North Tyneside area General purposes restricted to Northumberland Community Services General purposes restricted to the Blyth area

Unrestricted Funds

Berwick General Fund General purposes of Berwick hospital Cardiology Fund Improving cardiology services at Wansbeck Hospital Caroline's Comet Fund Promote the understanding of practices in palliative care Charisma Study Research Researching stroke prevention Chemo Unit Berwick Chemotherapy Unit at Berwick Hospital Diabetic Education Fund To support education for Diabetes staff Esprit Research Fund For research into causes of strokes Hexham Cancer Equipment Fund To purchase equipment for cancer services at Hexham hospital ITU Trustwide For the Trustwide Intensive Care Service Oncology Day Unit WGH For improving patient experience at the Oncology day unit Oncology Fund For oncology treatments and staff education Palliative Care Northumbria Support for palliative care patients in North Tyneside and Northumberland Parkinson's Disease Fund For research into Parkinson's disease Profess Research Fund To promote stroke prevention research Special Care Baby Unit For improving facilities within SCBU Trustwide Tanzania Education Fund Undertake research supported by British Council Teardrop Project Support for bereaved families after infant death WGH Palliative Care (Oasis Room) Improving palliative care services at Wansbeck Hospital Haltwhiste Hospital Fund For the general purposes of Hexham Hospital Hexham Hospital General Fund For general purposes at Haltwhsitle Hospital Breast Disease Fund Improving Breast disease services Trustwide Ward 22 Stroke Fund For the general purposes of the Stroke Ward North Tyneside Pharamcy Charitable Fund For support of Pharamcy services Trustwide Covid 19 Donations Fund For the general purpose sof the charity Trustwide

13. Commitments, Liabilities and Provisions

The charity had no commitments, liabilities or provisions at the 31 March 2023 (31 March 2022 - nil).

14. Connected Organisations

2022-2023 2022-2023 2021-2022 2021-2022
Name, nature of connection,
description of activities undertaken
and details of any qualifications
expressed by their auditors		 Turnover of Connected
Organisation
£

Net surplus for the
Connected
Organisation
£
Turnover of
Connected
Organisation
(Restated)
£
Net surplus for the
Connected
Organisation
£
The Charity is administered by
Northumbria Healthcare NHS
Foundation Trust.
The Trust Board members are
representatives of the Corporate
Trustee of the Charity
806,090,000		 64,920,000 704,536,000 7,154,000

52

Northumbria Healthcare NHS Trust Charity

15. Related Party Transactions

The Charity is connected to Northumbria Healthcare NHS Foundation Trust, it being the sole Corporate Trustee of the Charity. The Board of Directors of the Foundation Trust therefore have direct control of the charity through their control of the Foundation Trust. The Charity's objectives are to apply income and capital for any charitable purpose relating to services provided by the Foundation Trust and therefore the resources expended relate to the Foundation Trust in this way.

During the year the charity had a number of inter-company transactions with the Foundation Trust. At the 31 March 2023 the value of the inter-company balance was £15,000, that is the charity was owed £15,000 from the Foundation Trust, compared to the prior year in which the intercompany balance was £39,000 to the Foundation Trust.

During the year none of the members of the Foundation Trust Board or members of the key management staff or parties related to them has undertaken any material transactions with the Charitable Trust.

The charity is included within the consolidated financial statements of the Northumbria Healthcare NHS Foundation Trust, for which copies may be obtained from the Trust website (www.northumbria.nhs.uk).

Members of the Foundation Trust Board:

Executive Directors

Sir James Mackey Birju Bartolli Paul Dunn Kate Thompson Mr Jeremy Rushmer Dr Alistair Blair Marion Dickson Claire Riley (until 31st May 2022)

Non-Executive Directors

Alan Richardson (Chair of Foundation Trust until 31st of August 2023) Paul Ennals (Chair of Foundation Trust from 1st September 2023) Margaret Rowe (from 4th September 2023) Martin Knowles (until 31st September 2022) Moira Davidson Bernard McCardle Sir Alan Craft Andrew Besford Ruth Connorton Richard Dale (from 1st August 2022) Stephen McKinley Phill Lobb

No remuneration was paid to members of the Trust Board in 2022/23 (2021/22- Nil). No expenses were paid to Trust Board members in 2022/23 (2021/22 - Nil). No Trustee indemnity insurance was paid in 2022/23 (2021/22 - Nil).

53

NORTHUMBRIA HEALTHCARE NHS FOUNDATION TRUST FUNDS HELD ON TRUST ANNUAL ACCOUNTS 2022-23 The accounts of the funds hdd on trusl by the Northumbria Healthcare NHS Foundalion Trust. FOREWORD These accounts have been prepared by the Trustees under section 98(2} of the National Health servi￿ Ad 1977 (as amended) which the Se¢￿tary of State has, with the approval of Ihe Treasury, directed. STATUTORY BACKGROUND The Northumbria Healthcare NHS Foundation Trust is the corF()rate trustee of the funds held on trust under paragraph 16(c) of Schedule 2 of the NHS and Community Care Act 1990 unless Trustees have been appointed under s11 of the NHS and Community Care Acl 1￿. The Northumbria Healthcare NHS Foundation Trust charitable funds are registered with the Charity Commission. MAIN PURPOSE OF THE FUNDS HELD ON TRUST The main purrose of the charitable funds hekl on trust is to apply income for any charitable purpose relating to the National Health servi￿ wholly or mainly for the services provided by the Northumbria Health(are NHS Foundation Trust. Signed . .. on behalf of the Corporate Trustee Dated......16th January2024............. 34

Independent auditor’s report to the trustees of Northumbria Healthcare NHS Trust Charity

Opinion

We have audited the financial statements of Northumbria Healthcare NHS Trust Charity (the ‘charity’) for the year ended 31 March 202 3 which comprise Statement of Financial Activities, Balance Sheet, Statement of Cash flow and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including 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:

Basis for opinion

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

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees’ 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 identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern 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 concern are described in the relevant sections of this report.

Other information

35

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

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

We have nothing to report in this regard.

Matters on which we are required to report by exception

In light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees’ Report.

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

Responsibilities of Trustee

As explained more fully in the trustee responsibilities statement set out on page 33, the trustee is 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 trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

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

36

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 the financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. Based on our understanding of the charity and its activities, we identified that the principal risks of non-compliance with laws and regulations related to the UK tax legislation, pensions legislation, employment regulation and health and safety regulation, anti-bribery, corruption and fraud, money laundering and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements, such as the Charities Act 2011 and the Charities Statement of Recommended Practice.

We evaluated the trustees’ and management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to posting manual journal entries to manipulate financial performance, management bias through judgements and assumptions in significant accounting estimates, and significant one-off or unusual transactions.

Our audit procedures were designed to respond to those identified risks, including noncompliance with laws and regulations (irregularities) and fraud that are material to the financial statements. Our audit procedures included but were not limited to:

Our audit procedures in relation to fraud included but were not limited to:

There are inherent limitations in the audit procedures described above and the primary responsibility for the prevention and detection of irregularities including fraud rests with management. As with any audit, there remained a risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal controls.

37

A further description of our resFX)nsibiltlles fDr the audil of the financial statements is located on the Financial Reportin9 Council's websrte at hltp-.Ilwww.frc.org.ukJaudrtorsresponsibilities. This description forms part of our audrtorfs reporL Use of the audit report This rep)rt is made solety lo the charty's trustees. as a body, in accordan￿ with Part 4 of the Charilies (Accounts and ReFQrts} Regulations 2008. Our audit work has been undertaken so that we might stale to the charity's tnjstees those mallers we are required lo sia16 to thèm in an auditor's report and for rio olheT purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charty and the charity's trustees as a body, for our audil work, for this re￿1, crf for the opinions wa have fomed. SKJned'. Michaél T Moran BA FCA (Senior Stalulory A￿litOr) For and on behalf of Rob50n Laidler Accountants Limited stalutory AL¥Jitor Femwo¢)l House Femwo(MY Road Jesmond N8wcastle Upon Tyne NE2 1TJ Data: ?1 Tal￿9{ 9oILÈ Robson Laidler Accountsnls Limiied is 81M)ible for app)Int￿nt as auditor of charity by virtue ol ils eligibility for atpointmenl as auditor of a company under sectlon 1212 of the Companies Acl 2006.

Northumbria Healthcare NHS Trust Charity

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2023

Income

Year Ended
2023
Year Ended
2022
Note
Unrestricted
Funds
£000
Restricted
Funds
£000
Total
Funds
£000
Total
Funds
£000
Donations and legacies
2
293
887
1,180
337
Charitable activities
3
21
945
966
753
Investment income
4
56
61
117
83
Total incoming resources
370
1,893
2,263
1,173

Expenditure

Fundraisingcosts 5 75 0 75 56
Charitable activities 6 271 1,187 1,458 1,046
Total resources expended 346 1,187 1,533 1,102
Gains on revaluation of investment assets 8,11 (148) (5) (153) 219
Gains on disposal of investment assets 8,11 0 0 0 0
Totalgains on investment assets (148) (5) (153) 219
Net incoming resources (124) 701 577 290
Gross transfer between funds 10 (10) 0 0
Net movement in funds (114) 691 577 290
Fund balances brought forward at 31 March 2022 2,362 1,735 4,097 3,807
Fund balances carried forward at 31 March 2023 2,248 2,426 4,674 4,097

The notes at pages 41 to 53 form part of these accounts.

39

Norihumbria Healthcare NHS Trusl Charl BALANCE SHEET AS AT 31 MARCH 2023 Jh57 1.529 io Curr•nl asG•ty.' IOBbbr& Sknl treSlm61iS and pc.ts C•sh atbir& •nd if Totsl euN•AtUBBty 21 16 47 li sio 196 241 Cr•Sltors." ArnouM8 l•Min N•t¢urr•nt i$• •J• wAINfi on 39. 17 Fwds¢ll￿¢h•rmY Iwm6 FL 2,361 ,ResIpC￿d otal ¢4ih• c ?.4PG 1426 iJ5 ai oa98s 41 to531om ￿rt￿th￿￿￿tth￿ts leih)￿￿￿ 2QZ4.... 40

Notes to the financial statements for the year ended 31 March 2023

1. Accounting Policies

Basis of preparation

The financial statements have been prepared under the historical cost convention, with the exception of investments which are included at fair value.

The accounts (financial statements) have been prepared in accordance with the Statement of recommended practice: accounting and reporting by charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued in October 2019 and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011 and UK Generally Accepted Practice as it applies from 1 January 2019.

The accounts (financial statements) have been prepared to give a ‘true and fair’ view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a ‘true and fair view’. This departure has involved following Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued in October 2019 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.

The presentation currency of these financial statements is sterling. All amounts in the financial statements have been rounded to the nearest £1,000.

The Corporate Trustee considers that there are no material uncertainties about Nort humbria Healthcare’s charitable funds ability to continue as a going concern. There are no material uncertainties affecting the current year’s accounts.

The charity’s accounts are prepared on a going concern basis. The only obligated expenditure the charity is committed to in the next twelve months is the administration costs of running the charity. There are sufficient reserves to meet this commitment for the foreseeable future.

The Trust constitutes a public benefit entity as defined by FRS102.

The charity’s Corporate Trustee and parent undertaking, Northumbria Healthcare NHS Foundation Trust, includes the charity in its consolidated financial statements. The consolidated financial statements of Northumbria Healthcare NHS Foundation Trust are prepared in accordance with FRS 102 and are available to the public and may be obtained from the Trust website (www.northumbria.nhs.uk). In these financial statements, the charity is considered to be a qualifying entity (for the purposes of this FRS) and has applied the exemptions available under FRS 102 in respect of the following disclosures:

As the consolidated financial statements of Northumbria Healthcare NHS Foundation Trust include the equivalent disclosures, the charity has also taken the exemptions under FRS 102 available in respect of the following disclosures:

As the charity is a wholly owned subsidiary of Northumbria Healthcare NHS Foundation Trust, it has taken advantage of the exemption contained in FRS 102.33A and has not disclosed transactions or balances with wholly owned members of this group.

1.1 Accounting Convention

41

The financial statements are prepared in accordance with the historical cost convention, as modified for the revaluation of certain investments which are included at fair value.

1.2 Income

a) Income is recognised in the statement of financial activities (SOFA) when a transaction or other event results in an increase in the charity’s assets or a reduction in its liabilities. Income is recognised in the accounts of the charity when all of the following conditions are met;

– i) Entitlement control over the rights or other assets to the economic benefit has passed to the charity;

– ii) Probable it is more likely than not that the economic benefits associated with the transaction or gift will flow to the charity; and

iii) Measurement - the monetary value or amount of the income can be measured reliably and the costs incurred for the transaction and the costs to complete the transaction can be measured reliably.

b) Gifts in kind

i) Assets given for distribution by the funds are included in the Statement of Financial Activities only when distributed.

ii) Assets given for use by the funds (e.g. property for its own occupation) are included in the Statement of Financial Activities as income when receivable.

iii) Gifts made in kind but on trust for conversion into cash and subsequent application by the funds are included in the accounting period in which the gift is sold.

In all cases the amount at which gifts in kind are brought into account is either a reasonable estimate of their value to the funds or the amount actually realised. The basis of the valuation is disclosed in the annual report.

c) Donations in kind

Donations in kind (e.g. the provision of free accommodation) is included in the accounts with an equivalent amount in ongoing resources, if there is a financial cost borne by another party. The value placed on such income is the financial cost of the third party providing the resources.

d) Legacies

Pecuniary and residuary legacies are accounted for as income once the receipt of the legacy is probable. This will be once confirmation has been received from the representatives of the estate that payment of the legacy will be made or property transferred, the executors have established that there are sufficient assets in the estate to pay the legacy and all conditions attached to the legacy have been fulfilled. If there is uncertainty as to the amount of the legacy and it cannot be reliably estimated then the legacy is shown as a contingent asset until all of the conditions for income recognition are met.

Income fro m reversionary interest of ‘life interest’ legacies is treated as receivable when conditions associated with the payment have been recognised (e.g. death of a life tenant). Any material assets bequeathed to the charity but subject to a life tenancy interest held by a third party are disclosed in the accounts.

e) NVS Shops

All sales made in the NVS shops are in cash and are recognised at the point of sale. The principal purchases of goods to be sold are paid for on a direct debit basis at the end of each month and hence no creditors are required to be recognised. Any year end inventory in shops is excluded from the accounts as the Corporate Trustee does not consider it to be material.

1.3 Expenditure

Charitable expenditure is expenditure related to the aims and objectives of the charity.

42

All expenditure is accounted for on an accruals basis and has been classified under heading that aggregate all costs related to each category of expense shown in the Statement of Financial Activities. Expenditure is recognised when the following criteria are met;

Irrecoverable VAT is charged against the category of resources expended for which it was incurred.

a) Cost of raising funds

The costs of generating funds are the costs associated with generating income for the funds held on trust.

b) Grants payable

Grants payable are payments made to linked, related party or third party NHS bodies and non NHS bodies, in furtherance of the charitable objectives of the funds held on trust, primarily for the relief of those who are sick. Grant payments are recognised as expenditure when the conditions for their payments have been met or where there is a constructive obligation to make a payment.

A constructive obligation arises when;

The Corporate Trustee has control over the amount and timing of grant payments and consequently where approval has been given by the Corporate Trustee and any of the above criteria have been met then a liability is recognised. However, when they are then those conditions have to be met before the liability is recognised. Where an intention has been communicated, then no expenditure is recognised but an appropriate designation is made in the appropriate fund. If a grant has been offered but there is uncertainty as to whether it will be accepted or whether conditions will be met then no liability is recognised but a contingent liability will be disclosed.

c) Governance Costs

Governance costs are classified as a support cost and therefore have been apportioned between fundraising activities and charitable activities.

d) Support costs

Support costs are those costs which do not relate directly to a single activity. These include some staff costs, costs of administration, internal and external audit costs and IT support. Support costs have been apportioned between fundraising costs and charitable activities on an appropriate basis.

e) Fundraising costs

43

The costs of generating funds are those costs attributable to generating income for the charity, other than those costs incurred in undertaking charitable activities or the costs incurred in undertaking trading activities in furtherance of the charity’s objects.

f) Charitable Activities

Costs of charitable activities comprise all costs incurred in the pursuit of charitable objects of the charity. These costs, where not wholly attributable, are apportioned between the categories of charitable expenditure in addition to the direct costs. The total costs of each category of charitable expenditure include an apportionment of support costs as shown in note 6.

1.4 Investment Fixed Assets

i) Investment fixed assets are shown at market value.

ii) Quoted stocks and shares are included in the balance sheet at mid-market price, ex-div.

iii) Other investment fixed assets are included at Corporate Trustee ’s best estimate of market value.

Investments are a form of basic financial instrument. Fixed asset investments are initially recognised at their transaction value and are subsequently measured at their fair value (market value) as at the balance sheet date. The Statement of Financial Activities includes the net gains and losses arising on revaluation and disposals throughout the year.

Quoted stocks and shares are included in the Balance Sheet at the current market value quoted by the investment analyst, excluding dividend. Other investments are included at the Corporate Trustee’s best estimate of market value.

The main form of financial risk faced by the charity is that of volatility in equity markets and investment markets due to wider economic conditions, the attitude of investors to investment risk and changes in sentiment concerning equities within particular sector sub subsectors.

1.5 Staff and Pension Costs

No staff were directly employed by the charity during the year. Northumbria Healthcare Care NHS Foundation Trust fully re-charged Bright charity for the 12 whole time equivalent members of staff who work full time for the charity. 4 of these staff work in charity management, administration and fundraising with the remaining 8 whole time equivalent staff working in the Northumbria Volunteer Service shops. Some of these staff members belong to the NHS Pension Scheme which is an unfunded defined benefit scheme which is accounted for as a defined contribution scheme. The recharge from the Trust includes the employee contributions to that scheme. For more information on the NHS Pension Scheme refer to the Trust annual report and accounts.

1.6 Structure of Funds

When there is a legal restriction on the purpose to which a fund may be put, the fund is classified in the accounts as:

Restricted funds are those where the donor has provided for the donation to be spent in furtherance of a specified charitable purpose.

44

Endowment funds arise when the donor has expressly provided that the gift is to be invested and only the income of the fund may be spent.

Other funds are classified as unrestricted funds. Unrestricted funds which the Corporate Trustee has chosen to earmark for set purposes are also classified as designated funds. The major funds held within these categories are disclosed on notes 12.1 and 12.2.

1.7 Realised and unrealised gains and losses

All gains and losses are taken to the Statement of Financial Activities as they arise. Realised gains and losses on investments are calculated as the difference between sales proceeds and opening market value (or date of purchase if later). Unrealised gains and losses are calculated as the difference between market value at the year end and open market value (or the date or purchase if later).

45

1.8 Debtors

Debtors are amounts owed to the charity. They are measured on the basis of their recoverable amount.

1.9 Cash and Cash equivalents

Cash at bank and in hand is held to meet the day to day running costs of the charity as they fall due. Cash equivalents are short term, highly liquid investments.

1.10 Creditors

Creditors are amounts owed by the charity. They are measured at the amount that the charity expects to have to pay to settle the debt.

Amounts which are owed in more than a year are shown as long term creditors.

1.11 Related Party Transactions

Northumbria Healthcare NHS Foundation Trust is the corporate trustee of the Bright Charity as well as its main – grant beneficiary they are therefore related parties. Northumbria Healthcare makes a number of clerical and transaction services available to the charity.

These include:

Management and governance services at a cost of £124,000 (£25,000 in 2021/22)

• accountancy and administrative services at a cost of £62,000 (£54 ,000 in 2021/22) in support of the charity’s grant making activities which are included within support costs - see note 7.

None of the members of the NHS Trust Board or parties related to them has undertaken any transactions with the Bright charity or received any benefit from the charity in payment or kind. Board members received no honoraria or emoluments in the year and no expenses paid to them in the year (20021/22 -Nil).

46

Northumbria Healthcare NHS Trust Charity

2. Donations and Legacies

Year Ended
2023
Year Ended
2022
Unrestricted
Funds
£000
Restricted
Funds
£000
Total
Funds
£000
Total
Funds
£000
Donations from individuals
142
30
172
214
Corporate Donations
13
12
25
18
Legacies
138
845
983
105
Total voluntary income
293
887
1180
337

3. Income from charitable activities

Year Ended
2023
Year Ended
2022
Unrestricted
Funds
£000
Restricted
Funds
£000
Total
Funds
£000
Total
Funds
£000
HVS Shops
0
945
945
730
Other
21
0
21
23
Total activities forgenerating funds
21
945
966
753

The above income relates to shops at The Northumbria Specialist Emergency Care Hospital at Cramlington, North Tyneside General Hospital, Wansbeck and Hexham Hospitals and Blyth Hospital.

The shops sell refreshments and general provisions to patients and visitors to the hospital. The shops are staffed principally by volunteers working under the name of the Northumbria Volunteer Service (NVS). In addition to the volunteers there 8 whole time equivalent paid staff working the shops who are direclty employed by the Foundation Trust (paragragh 1.5 Accounting Policies)

All income from operation are made available to the charity and expenditure of the profits is included under Note 6 under charitable activities.

4. Investment income

Total gross income Year Ended
2023
Year Ended
2022
Unrestricted
Funds
£000
Restricted
Funds
£000
Total
Funds
£000
Total
Funds
£000
Investments listed on Stock Exchange
0
0
0
0
Investments in a Common Deposit Fund or Common
Investment Fund
49
53
102
83
Other investments and deposit accounts
7
8
15
0
Total investment income
56
61
117
83

47

Northumbria Healthcare NHS Trust Charity

5. Expenditure on raising funds
Unrestricted
Funds
£000
Restricted
Funds
£000
Total 2023
Total Funds
£000
Total 2022
Total Funds
£000
Fundraisingcosts
75
0
75
56
Total cost ofgenerating funds
75
0
75
56

6. Expenditure on charitable activities
Note
Unrestricted
Funds
£000
Restricted
Funds
£000
Total 2023
Total Funds
£000
Total 2022
Total Funds
£000
Purchase of New Equipment
31
43
74
81
New Buildingand Refurbishment
0
14
14
43
Staff Education and Welfare
20
10
30
24
Patient Education and Welfare
125
212
337
153
IT Equipment and Software
4
0
4
0
Grants to Other Charities
0
21
21
16
Support Costs and Overheads
7
91
95
186
79
Costs ofgood sold - HVS Shops
0
792
792
650
Total cost of charitable activities
271
1,187
1,458
1,046

48

Northumbria Healthcare NHS Trust Charity

7. Allocation of Governance, support costs and overheads

Allocted to cost
of charitable
Raising Funds
activities		 Total 2023 Total 2022
£000 £000 £000 £000
Governance - External Audit 0 6 6 6
Governance - Other costs 0 16 16 19
Totalgovernance costs 0 22 22 25
Financial administration and accountancycosts 0 56 56 52
Direct managerial and operational costs 45 102 147 32
Computer expenses 0 0 0 0
Miscellaneous 30 6 36 26
Total other support costs 75 164 239 110
Totalgovernance, support costs and overheads 75 186 261 135

Financial Services and Governance costs are allocated on the basis of time spent by Trust employees these services to the charity. External Audit fees are a direct cost to the charity

The £186,000 (2022: £79,000) of support costs is included within the Cost of Charitable Activities (Note 6).

The increased costs in the year are due to fundraising staff being in post for a full year (part year 21/22), staff working on specific projects for which additonal external funding has been received.

The charity does not directly employ any members of staff. The governance and financial services used by the charity are provided by employees of Northumbria Healthcare NHS Foundation Trust. The cost of providing these services is recharged to the charity by the Foundation Trust. Costs are calculated on the basis outlined above.

8. Analysis of Fixed Asset Investments

8.1 Fixed Asset Investments Year Ended
2023
Year Ended
2022
Unrestricted
Funds
£000
Restricted
Funds
£000
Total
Funds
£000
Total
Funds
£000
Market value at start ofyear
2,081
1,529
3,610
2,691
Purchased- book cost
0
0
0
700
Netgain on revaluation unrealised
(148)
(5)
(153)
219
Gross transfer between funds
(270)
270
0
0
Market value at end ofyear
1,663
1,794
3,457
3,610

All investments are held primarily to provide an investment return for the charity.

8.2 Market value at 31 March
Total 2023
£000
Total 2022
£000
Investments in a Common Deposit Fund or Common Investment Fund;
COIF Ethical Income Fund 1,648
1,735
COIF Global EquityFund 1,809
1,875
Total fixed assets investments 3,457
3,610

There are no direct investments held outside the UK. Both common investment fund holdings are considered to be material and are disclosed. There are no individual listed investments in fixed asset investments.

49

Northumbria Healthcare NHS Trust Charity

9. Analysis of Debtors

Amounts falling due withinone year Total 2023
Total 2022
Unrestricted
Funds
£000
Restricted
Funds
£000
Total Funds
£000
Total Funds
£000
Accrued income
12
13
25
27
Other debtors
7
8
15
0
Total debtors
19
21
40
27

Accrued income represents income earned but not yet received on investments.

10. Analysis of Creditors

Amounts falling due withinone year Total 2023
Total 2022
Unrestricted
Funds
£000
Restricted
Funds
£000
Total Funds
£000
Total Funds
£000
Trade creditors
0
0
0
39
Total creditors
0
0
0
39

Creditors consist of money owed to Northumbria Healthcare NHS Foundation Trust in respect of goods and services bought by the charity but initially paid for by the Trust

11. Short Term Investments and Deposits

Short term Investments Unrestricted Restricted Total Total
Funds Funds 2023 2022
£000 £000 £000 £000
Market value at start ofyear 0 0 0 0
Netgain on revaluation unrealised 0 0 0 0
Netgain on revaluation realised 0 0 0 0
Proceeds of sale - book cost 0 0 0 0
Proceeds of sale - Realisedgain on disposal 0 0 0 0
Market value at end ofyear 0 0 0 0
Deposits Unrestricted Restricted Total Total
Funds Funds 2023 2022
£000 £000 £000 £000
COIF Deposit account 456 494 950 50
BuildingSocietyAccounts 15 16 31 31
Total deposits 471 510 981 81
Total short term investments and deposits 471 510 981 81

50

Northumbria Healthcare NHS Trust Charity

Analysis of Funds

12. Endowment Funds

The charity held no endowment funds at 31 March 2023 (31 March 2022 - nil.)

Material funds

12.1 Unrestricted Funds Balance 31
March 2022
£000		 Incoming
Resources
£000		 Resources
Expended
£000		 Gains /
(losses) on
Revaluation
£000		 Other
Transfers
£000		 Balance 31
March 2023
£000
Berwick General Fund 36 0 0 (3) 0 33
CardiologyFund(WGH) 53 2 0 (3) 0 52
Caroline's Comet Fund 57 0 0 (3) 0 54
Charisma StudyReseach 47 0 0 (3) 0 44
Chemo Unit Berwick 42 1 0 (3) 0 40
Diabetic Education Fund 44 2 (1) (2) 0 43
Esprit Research Fund 115 0 (52) (8) 0 55
Hexham Cancer Equipment Fund 94 4 (6) (6) 0 86
ITU Trustwide 47 3 0 (2) 0 48
OncologyDayUnit(WGH) 77 19 (2) (3) 0 91
OncologyFund(NTGH) 63 132 (28) (3) 0 164
Palliative Care Northumbria 352 65 (32) (19) 0 366
Parkinson Disease Fund 69 0 (1) (4) 0 64
Profess Research Fund 28 0 0 (2) 0 26
Special Care BabyUnit - Trustwide 28 1 0 (2) 0 27
Tanzania Educational Fund 36 2 (4) (2) 0 32
TeardropProject 98 10 (5) (6) 0 97
WGH Palliative Care(Oasis Room) 36 1 (1) (3) 0 33
Haltwhistle Hospital Fund 62 7 0 (4) 0 65
Hexham Hospital General Fund 204 3 (5) (15) 0 187
Breast Disease Fund 28 0 (2) (2) 0 24
NTGH - Ward 22 Stroke Ward
102		 0 (3) (6) 0 93
PharmacyCharitable Fund 35 6 (7) (2) 0 32
Covid 19 Donations Fund 40 0 0 (3) 0 37
Others 569 112 (197) (39) 10 455
Total unrestricted funds 2,362 370 (346) (148) 10 2,248

The unrestricted funds of the charity are designated funds i.e. there is no legal restriction on the use of the funds however the Corporate Trustee has earmarked the funds to be used for a particular purpose in the future. This purpose is indicated by the name given to these designated funds.

12.2 Restricted Funds
Gains /
Balance 31 Incoming Resources (losses) on Other Balance 31
March 2022 Resources Expended Revaluation Transfers March 2023
£000 £000 £000 £000 £000 £000
Covid 19 Donations Fund 388 0 (40) (1) 0 347
NVS Fund(Blyth) 57 5 (7) (1) 0 54
NVS Fund(Cramlington) 131 398 (299) 0 (79) 151
NVS Fund(North Tyneside) 237 299 (259) 0 (56) 221
NVS Fund(Wansbeck) 59 1 (45) 0 4 19
North Northumberland CDG Fund 364 0 (6) (1) 0 357
North Tyneside CDG Fund 404 714 (94) (2) 46 1,068
CommunityCDG Fund 63 27 (12) (1) 0 77
Blyth CDG Fund 31 133 0 0 0 164
Others 1 316 (425) 1 75 (32)
Total restricted funds 1,735 1,893 (1,187) (5) (10) 2,426

Income and expenditure of the shops staffed by the Northumbria Volunteer Service (NVS) are accounted for within separate funds - the NVS Funds. Periodically in the year any surpluses are transferred to Development Group funds. Expenditure on charitable activities funded by these surpluses is subsequently charged against the Development Group funds.

51

Northumbria Healthcare NHS Trust Charity

12.3 Details of Material Funds

Name of fund Description of the nature and purpose of each fund

Restricted Funds

Covid 19 Donations Fund HVS Fund (Blyth) HVS Fund (Cramlington) HVS Fund (North Tyneside) HVS Fund (Wansbeck) North Northumberland CDG Fund North Tyneside CDG Fund Community CDG Fund Blyth CDG Fund

For donations made in repsonse to the pandemic restricted to specific purposes General purposes restricted to the Blyth area General purposes restricted to the Northumbria Specialist Emergency Care Hospital General purposes restricted to the North Tyneside area General purposes restricted to the Wansbeck area General purposes restricted to the North Northumberland area General purposes restricted to the North Tyneside area General purposes restricted to Northumberland Community Services General purposes restricted to the Blyth area

Unrestricted Funds

Berwick General Fund General purposes of Berwick hospital Cardiology Fund Improving cardiology services at Wansbeck Hospital Caroline's Comet Fund Promote the understanding of practices in palliative care Charisma Study Research Researching stroke prevention Chemo Unit Berwick Chemotherapy Unit at Berwick Hospital Diabetic Education Fund To support education for Diabetes staff Esprit Research Fund For research into causes of strokes Hexham Cancer Equipment Fund To purchase equipment for cancer services at Hexham hospital ITU Trustwide For the Trustwide Intensive Care Service Oncology Day Unit WGH For improving patient experience at the Oncology day unit Oncology Fund For oncology treatments and staff education Palliative Care Northumbria Support for palliative care patients in North Tyneside and Northumberland Parkinson's Disease Fund For research into Parkinson's disease Profess Research Fund To promote stroke prevention research Special Care Baby Unit For improving facilities within SCBU Trustwide Tanzania Education Fund Undertake research supported by British Council Teardrop Project Support for bereaved families after infant death WGH Palliative Care (Oasis Room) Improving palliative care services at Wansbeck Hospital Haltwhiste Hospital Fund For the general purposes of Hexham Hospital Hexham Hospital General Fund For general purposes at Haltwhsitle Hospital Breast Disease Fund Improving Breast disease services Trustwide Ward 22 Stroke Fund For the general purposes of the Stroke Ward North Tyneside Pharamcy Charitable Fund For support of Pharamcy services Trustwide Covid 19 Donations Fund For the general purpose sof the charity Trustwide

13. Commitments, Liabilities and Provisions

The charity had no commitments, liabilities or provisions at the 31 March 2023 (31 March 2022 - nil).

14. Connected Organisations

2022-2023 2022-2023 2021-2022 2021-2022
Name, nature of connection,
description of activities undertaken
and details of any qualifications
expressed by their auditors		 Turnover of Connected
Organisation
£

Net surplus for the
Connected
Organisation
£
Turnover of
Connected
Organisation
(Restated)
£
Net surplus for the
Connected
Organisation
£
The Charity is administered by
Northumbria Healthcare NHS
Foundation Trust.
The Trust Board members are
representatives of the Corporate
Trustee of the Charity
806,090,000		 64,920,000 704,536,000 7,154,000

52

Northumbria Healthcare NHS Trust Charity

15. Related Party Transactions

The Charity is connected to Northumbria Healthcare NHS Foundation Trust, it being the sole Corporate Trustee of the Charity. The Board of Directors of the Foundation Trust therefore have direct control of the charity through their control of the Foundation Trust. The Charity's objectives are to apply income and capital for any charitable purpose relating to services provided by the Foundation Trust and therefore the resources expended relate to the Foundation Trust in this way.

During the year the charity had a number of inter-company transactions with the Foundation Trust. At the 31 March 2023 the value of the inter-company balance was £15,000, that is the charity was owed £15,000 from the Foundation Trust, compared to the prior year in which the intercompany balance was £39,000 to the Foundation Trust.

During the year none of the members of the Foundation Trust Board or members of the key management staff or parties related to them has undertaken any material transactions with the Charitable Trust.

The charity is included within the consolidated financial statements of the Northumbria Healthcare NHS Foundation Trust, for which copies may be obtained from the Trust website (www.northumbria.nhs.uk).

Members of the Foundation Trust Board:

Executive Directors

Sir James Mackey Birju Bartolli Paul Dunn Kate Thompson Mr Jeremy Rushmer Dr Alistair Blair Marion Dickson Claire Riley (until 31st May 2022)

Non-Executive Directors

Alan Richardson (Chair of Foundation Trust until 31st of August 2023) Paul Ennals (Chair of Foundation Trust from 1st September 2023) Margaret Rowe (from 4th September 2023) Martin Knowles (until 31st September 2022) Moira Davidson Bernard McCardle Sir Alan Craft Andrew Besford Ruth Connorton Richard Dale (from 1st August 2022) Stephen McKinley Phill Lobb

No remuneration was paid to members of the Trust Board in 2022/23 (2021/22- Nil). No expenses were paid to Trust Board members in 2022/23 (2021/22 - Nil). No Trustee indemnity insurance was paid in 2022/23 (2021/22 - Nil).

53

Northumbria Healthcare NHS Trust Charitable Fund Year ended 31 March 2023

SUMMARY OF AUDIT FINDINGS

1

Introduction

We set out below a summary of our key findings from our audit, including any important matters that have come to our attention, changes that have been made to your accounts and any system weaknesses that we have noted.

Notes and comments Meeting held via Teams at 11.30am on 19/12/2023. Present NCU, LSI, Sara Noon, Robert Graham, Lynda Bartle

Audit scope

Our audit work has been undertaken for the purpose of forming our opinion on the financial statements of the charity.

Our general audit approach is determined by our assessment of the audit risk, both in terms of the potential misstatement in the financial statements and of the control environment in which the charity operates. To summarise our approach included:

Significant risks will arise on most audits and are often derived from business risks that may result in a material misstatement, relate to unusual transactions that occur infrequently, or judgemental matters where measurement is uncertain. In areas where we identify the potential for significant risk, we performed more audit testing, including detailed substantive work, direct verification of transactions and confirmations from external third parties. Our work in other areas was proportionally less.

We considered the key risks in the financial statements to be:

Materiality and unadjusted errors

Materiality is the auditor’s way of assessing whether or not an error in a set of accounts is significant enough to impact on the view a user of the accounts has of your financial position. Material errors affect the view a user of the accounts would have, whereas immaterial errors make no difference to that view. For this assignment we have used a materiality of £45,000 . We have also treated any errors we have noted under £2,250 as trivial and not reported them to you.

2

Unadjusted errors

As part of our audit work, we have tested transactions and balances and we have noted the following errors from our audit work: -

Error description Profit effect
More (less) profit
£
Understated accrual (late invoices) (27,829)
Total error value, more (less surplus) (27,829)

Discussed and agreed to not adjust.

Total Potential errors amount to £29,397, which as below, materiality, no adjustment is necessary to the accounts.

Review of the financial statements Statement of Financial Activities

1. Income: Overall increase in income from £1.2m to £2.3m.

Income from donations and legacies would be expected to fluctuate on an annual basis. The charity received a significant number of legacies in the year - £1.2m compared to £340k in the prior year. Trading activities increased with the relaxation of the Covid restrictions and income from investments remained consistent.

2. Expenditure: Increase in expenditure from £1.1m to £1.5m.

The charity incurred increased general running costs in the year, partly due to increased staffing costs following the relaxation of the Covid restrictions. The main expenditure remains the cost of goods sold for the HVS shops, which rose in the year from £650k in 2022 to £792k in 2023. Additional bids were also processed during the year increasing expenditure, especially in relation to patient education and welfare where costs rose from £153k in 2022 to £337k in 2023.

Balance sheet

The balance sheet of the charity remains healthy with £3.4m held in investments and £196k held in cash. There are no liabilities at the year end due to the Trust owing the Charity £15K compared to the prior year where there was a liability of £39k due to the Trust.

3

Reserves

The free reserves of the charity (those available for use by the trustees) stand at £2.3m (2022: £2.4m). Free reserves are calculated as total reserves less restricted reserves less designated reserves less amount tied up in fixed assets (excluding investments).

Recent Charity Commission guidance has noted that reserves policies within the Trustees report are often not detailed enough in relation to what levels of free reserves a charity holds and why that level of reserves is considered appropriate by the Trustees. The reserves policy is often key to the strategic planning of the charity and should reflect how the Trustees plan to take the charity forward. This policy should be detailed enough to allow stakeholders and potential funders to see how the charity is being managed.

Legacy income

The Charity SORP requires all income to be recognised on entitlement. Legacies should be recognised when existence of a valid will is confirmed, it is probable that funds will be received, and an estimate of the amount can be made. Please confirm the following legacies received in the current year should not be recognised in the 2023 year based on the above.

Noted. They were unable to quantify at the year end and therefore no adjustment required

David Richard Wood £178,621 William Graham £52,666

VAT compliance

The VAT status of the charity in relation to the trade via the charity shops should be considered. The charity currently reports on the main Trust’s VAT return however as the charity is a separate legal entity and is not under the control of the Trust (ie the Trust cannot use the charity’s funds for its own purposes) indicate that it could be required to register for VAT in it’s own right.

Noted and are going to raise this query with their VAT advisors.

VAT is a complex area, and we would be happy to look into this in more detail, having advised similar organisations in the past.

Purchase cut off

It was noted during our testing that there was approx. £27,000 of invoices entered into April 23 relating to March 23, which had not been accrued at the year end. We would recommend that post year end invoices are reviewed at the year end and an accrual if necessary, made in order to correctly account for all costs within a financial year.

Noted and will look at this next year end

4

Shop income

Each shop fills in a daily cash sheet from the Z readings on the till and this is used to post transactions into the system. Till rolls are not kept and are therefore not checked by anyone independent to the shop exposing the charity to increased fraud risk. We would recommend that till rolls are attached and submitted to the finance office with the daily cash sheet to allow for spot checks to be completed.

Notes and comments

Noted and will look into the best way to introduce this control.

Restricted income

Under the SORP guidelines restricted income is income given to the charity for a specific purpose as instructed by the donor. In our opinion the shop income should be classified as unrestricted income as it is unlikely that customers of the shops place such restrictions on the income.

Noted. This was queried at a recent board meeting. There has been an informal agreement with the shop volunteers to spend this money on the sites it was raised but to look at treating these as designated funds rather than restricted funds.

Transactions with related parties

As auditors we review transactions with related parties when we become aware of them to ensure that these are at a fair market value and are properly disclosed. Are you aware of any additional disclosure requirements necessary in relation to related party transactions?

No further transactions to disclose

Fraud or error

We have not discovered any fraud or error as part of our audit procedures. Have you or any of the trustees or senior management suspected or discovered any fraud or any errors in your accounts?

No fraud or error noted

Going concern

As trustees when you sign off the accounts you are confirming that you consider the charity has sufficient resources to continue to trade as a going concern for at least 12 months from the date the accounts are approved. Are you aware of any issues that may affect the charity’s ability to continue as a going concern?

No issues with going concern

Laws and regulations

Are you aware of any breaches of any of the key laws or regulations that the charity operates in?

No issues encountered with laws and regulations

5

Notes and comments

Post balance sheet events, capital commitments or contingent liabilities A post balance sheet event is a significant event that has happened to the charity since the year end, such as a material bad debt or fraud. A capital commitment is a commitment made at the year end to spend a material amount of money on new assets or other agreements. A contingent liability is any uncertainty that may cause the charity to suffer a material cost in the future, such as a legal case. Are there any of these to report?

No PBSE events to disclose

Compliance with Ethical Standards for auditors

Key to any audit is that our opinion on the accounts is an independent opinion. If there are any matters that we consider a threat to our independence, we are required to point these out to you and set out how we have addressed these threats.

There are no threats identified.

Proposed audit opinion

Subject to any material points noted above being addressed then it is our intention to issue an unqualified or clean audit report.

Final accounts to be presented to the Board on 16/01/2024. Final packs to be with client to circulate ahead of these by 08/01/2024.

6

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