**Aneurin Bevan University Local Health Board Charitable Fund and Other Related Charities**
**Trustee’s Annual Report and Accounts 2021-2022**
**----- Start of picture text -----**
Registered Charity No: 1098728
**----- End of picture text -----**
## **Aneurin Bevan Health Charity**
## **About Us**
**1.** We receive monies given to Aneurin Bevan University Local Health Board from grateful patients, their loved ones and the wider community; thanking us for the NHS care and treatment we provide.
## **2.Our Partner NHS Health Board**
**3.** Aneurin Bevan University Local Health Board was established in October 2009 and achieved ‘University’ status in December 2013.
**4.** It delivers healthcare services to people in Blaenau Gwent, Caerphilly, Monmouthshire, Newport, Torfaen and provides some services to the people of South Powys.
**5.** Serving an estimated population of more We than 639,000 people, which is around 21% serve a population of 639,000 of the total Welsh population, it has approximately 14,000 staff and a budget of £1.6 billion. G.VENT **6. 7.** 21% **Introduction** of Wales
**8.** On behalf of the corporate trustee, we present the Aneurin Bevan University Local Health Board Charitable Fund and Other Related Charities Annual Report together with the audited financial accounts for the year ended 31[st] March 2022.
**9.**
## **10. Message from our Chair**
**11.** It has been another tough year for all of us. Your donations continue to help us
1
improve the care and treatment our patients receive and support our staff in delivering exceptional healthcare.
**12.** Please discover the story of our financial year and see the snapshot of the year below as a reminder of all that we have achieved.
**13.**
**14. You made it possible!**
**15.** Thank You!
**16.** Katija Dew, Chair
**17.** Charitable Funds Committee
**18. 19.**
**20. Message from our Chief Executive**
**21.**
**22.** As we reflect on the past year, my heartfelt thanks goes out to all those dedicated and generous donors who have supported us.
**23.** I am delighted to share our highlights with you
**24.**
**25.** Glyn Jones **26.** Interim Chief Executive
**27.**
**28.**
**29.**
**30.**
**31.**
**32.**
**33.**
2
## **34. Snapshot of 2021-22 INCOME – How we received our money 35. This year we received £981,000**
**----- Start of picture text -----**
36.
Total Income 2021-22
37.
38.
Investmen 39.
t Income; 40.
19.06% 41.
Donations
42.
; 40.67%
Legacies; 43.
Other 17.33% 44.
Income;
2.55%
Grant
Course Income;
Income; 10.09%
10.30%
**----- End of picture text -----**
## **Donations £399,000**
The donations we received is thanks to the generosity of patients, their relatives and friends in recognition of the care and treatment received from Aneurin Bevan University Local Health Board.
**Courses and Other Income Income from Investments £126,000 £187,000** We received £126,000 from course fees and sponsorship. These are run We received £187,000 from mainly through our Postgraduate our investment portfolio. department.
## **Legacies £170,000**
We received s legacies totalling £170,000. We are extremely grateful to those individuals who have had the generosity to leave a gift to us in their will.
## **Grant Income £99,000**
We have received £99,000 from external organisations to fund specific schemes / projects. Some of this funding was received from NHS Charities Together – monies raised by Captain Sir Tom Moore and others.
3
**EXPENDITURE – How we spent our money**
**45.**
## **46. This year we spent £930,000**
**----- Start of picture text -----**
Total Expenditure 2021-22
Patient
education and
Staff education
welfare ;
and welfare;
20.54%
24.09%
Research;
0.32%
Support/Fundra
ising Costs;
15.27%
Purchase of Building and
equipment; refurbishment;
36.45% 3.33%
47.
48.
49.
50.
51.
Patient Education and Welfare £191,000
52.
53.
54. This year we have used this money to continue services including:
55. an End-of-Life Companion service which enables trained
volunteers to sit with patients who may be at risk of dying alone.
The continued support of the Robins services, who assist
patients with menu choices on the wards, mealtime support,
contributing to their wellbeing and dignity, to Nevill Hall Hospital
and the Grange University Hospital, providing an equitable
service across our hospitals.
**----- End of picture text -----**
**Building and Refurbishment £31,000**
## **Research £3,000**
We spent this mainly on establishing a research office in This was used to pay for the cost of analysing samples for a Nevill Hall Hospital and research study. improving the environment, making better use of our rooms for our patients and staff.
During the year this was e.
4
**56. 57. 58. 59.Staff Education and Welfare £224,000 60. 61. 62.** This was spent on additional support for our Employee Well-being **63.** Service and continued support for training, where it has been **64.** possible and the purchase of educational materials to develop our **65.** staff. **66. 67. 68.** It was agreed to use charitable funds to purchase Hydration Bottles **69.** which were presented to staff to say thank you to all our staff and to **70.** recognise the exemplary contribution our staff have made and **71.** continue to make during the Covid-19 pandemic. **72. 73. 74. 75. 76. 77. 78. 79. 80. Support Costs £139,00081. 82.** This covers the cost of the Charitable Funds Team, Corporate support **83.** and auditor fee in administering the funds. **84. 85. 86. 87. 88. 89. 90. 91. Equipment £339,00092. 93. 94.** You have made it possible for us to purchase numerous items of **95.** much needed equipment for various wards and departments across **96.** the Health Board, such as pulse oximeters, bladder scanners and ECG **97.** machines. **98. 99.**
**100.** Other items include a simulation training suite for students and **101.** volunteers, defibrillators and cabinets for the community, MacBooks **102. 103.** for students, laptops for staff and furniture for our new medical education centre at the Grange University Hospital **104. 105. 106.** A list of key purchases follows. **107. 108. 109.**
**110.**
**111.**
**112.**
5
## **113. You made it possible …. 114.**
**…. for us to provide these key purchases**
**115.**
**116.**
_**117.**_
_**118. Charitable Funds are spent in line with the Charity’s objects and are intended to provide those additional amenities that will improve the conditions under which patients are cared for and treated or staff work.**_
## _**119.**_
**RITA Dementia Packages x 2, Ysbyty Aneurin Bevan 120.**
**121.** Reminiscence Interactive Therapy Activities (RITA) software is aimed at augmenting the care delivered to older people, those living with e.g 1 ims Dementia, Alzheimer’s and learning difficulties as a means of supporting them and reducing their agitation, isolation, depression and delirium. This equipment is particularly useful in this hospital where there are single bedded rooms.
**122.**
## **123.**
**Bladder scanner for Monmouth District Nurses**
## **124.**
**125.** Bladder scanners are portable, handheld 5 ultrasound devices which can perform quick,easy and non–invasive scans of the bladder LS) and is painless for the patient. It can be used to help identify bladder distension, causes of one urinary frequency and bladder irritability and is useful in assisting with accurate assessments of hydration status. The purchase of these additional bladder scanners has enabled the nursing staff to use them at the patient’s bedside which is beneficial to both patients and staff.
6
## **126.**
- **Thera Trainer, Renal Unit 127.**
The Thera Trainer is used as part of the treatment for patients to enhance their overall rehabilitation in a cohort of patients where achieving aerobic activity can be challenging.
**128. 129. 130. 131.**
- **ECG Systems x 2 for Cardiology Services at**
- **Grange University Hospital**
## **132.**
**133.** Additional machines to check the heart’s rhythm and electrical activity
**134.**
- **PH Manometry Equipment for General Surgery, Nevill Hall Hospital**
**135.** PH Manometry equipment tests the functionality of the oesophagus i.e., can it move food to your stomach normally.
- PH – is a test that measures the amount and severity of acidic stomach contents that may be leaking from the stomach into the oesophagus
- Mano – a test that measures the pressure activity within the oesophagus and the sphincters (ring like muscles which close a natural orifice or passage at either end of the oesophagus).
- **136.**
_**137.**_ Whilst ABUHB provides the largest benign Upper GI surgery service in Wales, it is the only Health Board in Wales that does not offer an oesophageal manometry service. As a result, patients are referred to Cardiff. This equipment will allow us to provide this service in house. Overall, this new service will significantly improve care provided to patients with acid reflux disease (GORD - _Gastro-oesophageal reflux disease._
## **138.**
_**139.** This equipment was funded from an outside charity, the Nevill Hall Hospital Thrombosis and General Research Fund which has supported the hospital for many years._
## _**140.**_
7
**You made it possible ….141. 142.**
**…for us to provide “Thank you“ tokens to our staff.**
**143. 144. 145. 146.** _**147.**_
**“Thank you” Hydration Bottles** hydration bottles, which are a ‘thank you’ gift for our staff for the outstanding contribution they made and continue to make during the Covid-19 pandemic.
**148. 149. 150. 151. 152. 153. 154.You made it possible …. ASGLU - New Bilingual Card Game Designed by …for the Person-Centred Care Team to Help Patients and Welsh Learners**
**155.** _**156.**_ The Health Board’s Person-Centred Care Team, in collaboration with the Welsh Language Unit and local Welsh medium schools, have designed and created a brand-new bilingual card game, named _Casglu (_ Welsh for _To Collect)._
_**157.**_ **158.** The game was made possible by funding from the RCN Foundation and the Welsh Language Unit Charitable Fund and is suitable for all ages, with the aim being for players to collect as many sets of cards as possible. Children in Welsh Medium education in
8
the Torfaen and Newport areas played a big part in designing the game’s pictures and sentences.
**159. 160.** The game was recently piloted with patients, Serenity and Caleb, on the Children’s Unit at The Grange University Hospital, who enjoyed playing with their families.
**161.**
**162.** In the first instance, _Casglu_ will also be made available to:
- The Children’s Unit at The Grange University Hospital
- Staff who are learning / fluent in Welsh to aid with Welsh language communication skills.
- Health Board volunteers to help them support patients with meaningful activities
- Local children who
helped design the game, as well as other schools in the Health Board area. **163.**
**164.** Once restrictions allow, it will also be part of the resources available for Intergenerational Activity in Care Homes and Community Wards.
**165.** We look forward to seeing the game played across our communities and generations, bringing a little bit of joy, and enhancing the use of the Welsh language.
**166.**
**167. 168.You made it possible ….** _**169.**_
**…. for us to say it with cards**
**170. Little things make a Big Difference**
**171.**
**172.** Staff at the Neonatal Unit, Grange University use your donations to purchase and send cards to those babies treated on the unit for their 1[st] Birthdays. While babies are in the unit, cards are sent from the babies to mums and dads, for Mother’s Day and Father’s Day.
**173.**
**174. 175. While in hospital**
9
**176. 177.** Recently a patient was given a card and stamp so he could write to his wife whom he had not been able to see for some time. Sadly, and unexpectedly, the patient died...
**178.**
**179.** When his wife came to collect his
belongings, she was carrying the card and said it had become one of her most treasured possessions.
**180.**
Thankfully, many patients recover and return home, but this small gesture made a significant difference to a loved relative. **181.**
Cards and stamps are available free of charge from the Chaplaincy department for any patient that might appreciate being able to write to a loved one.
## **182.**
## **After…**
## **183.**
**184.** Staff at our Accident and Emergency Units write notes in sympathy cards to relatives of those loved ones that have been admitted to hospital suddenly and passed away. Staff find it helps give closure to those relatives who were unable to be there at the end.
**185. 186. 187. 188. Your donations have made this possible.**
**189. 190. You made it possible ….191. 192. 193. …. for us to provide support at the End of Life**
**194. End of Life Companion Case Study 195. 196.** The End-of-Life Companion volunteer service commenced at the very start of the pandemic and both grants and donations have been used to pay for a Clinical Skills Trainer and a Volunteer Co-ordinator for this service.
**197.** Companions were recruited and trained so they were ready to support any patient that was at the end of their life and at risk of dying alone. End of Life Companions have supported patients both as befrienders and provided support to patients who are in the last days of their lives.
10
**198. 199.** Late last year, the Person-Centred Care Team had a request for the End-of-Life Companions to support a family in providing some additional company for their relative. The family members were exhausted. They had been sitting with their relative 24-hours a day; however, they did not want their relative to be alone.
**200. 201.** The End-of-Life Clinical Skills Trainer met with the family to explain the Companion role and then arranged for three Companions to visit the following day so that the family could have some muchneeded rest. The Clinical Skills Trainer also met with the ward staff so that they were aware of the support that had been put in place.
**202.**
**203.** The Companions know they may be contacted at short notice and were very pleased that they could support both the patient and the relatives. It was during one of the Companion visits that the patient peacefully died and importantly, they were not alone, which was a comfort to both the patient and their relatives.
**204. 205.** The Health Board is so grateful to our End-of-Life Companions who provide a very special and unique companionship in the final hours and moments of peoples’ lives.
**206.**
**207.**
**You made it possible ….208. 209.**
**210. …. for us to continue supporting students to become doctors 211. 212. 213.** Our Care Fund Project is used to identify individuals from less privileged backgrounds, with a potential to become qualified doctors by supporting them with a programme of mentoring and financial support. The project looks at innovative ways to encourage and train these individuals with the necessary skills and knowledge to obtain a place in medical school and support them through the training process to hopefully lead to them becoming active doctors within the Health Board locality.
**214.** The following comments have been received from recipients of our Care Project Bursary Fund:
**215.**
_**216.** “The generosity of the bursary I received has allowed me to experience the amazing opportunities I have had whilst completing a neuroscience degree. This is something that I did not think would be possible in my medical studies, as an extra year in university comes at a price that would not have been accessible to me without your support._
**217.**
_**218.** This year has allowed me to gain a greater appreciation for the research that underpins medicine and has allowed me to gain a qualification that will open many doors for myself in the future._
11
## _**219.**_
_**220.** If I had taken this intercalated year without the support of the bursary I would have had to support myself with a job whilst studying. However, thanks to your generosity I have been able to put the time and effort into my studies required to gain a first-class degree, something I never thought would be possible._
## _**221.**_
_**222.** I have further been very fortunate to have the time and opportunity to work with Public Health Wales and Cardiff University researchers to write and submit my first research paper for publication, as the first author. This opportunity has allowed me to turn what I have studied over the past year into something that will hopefully help others and add to the broader scientific community. To have the chance to work closely with incredible scientists and doctors that are advancing the knowledge of medicine has been a special experience._
_**223.**_ **224.** _Without your financial support, I do not believe this opportunity to better myself academically and as a future doctor would have been possible. I have to thank you dearly for the role you have played in this journey so far”_ _**225.** “The laptop given to me was incredibly beneficial. It is something I use every day and thus am very grateful to have a good and reliable device, to use for lectures, notes, assignments, as well as for online_ a _teaching sessions._
_**226.**_
_**227.** Furthermore, the money awarded to me has made a significant difference to my academic studies and personal life– It meant I did not have to work during term time, and could therefore fully focus on my studies, and dedicate myself to the course and its workload. It also allowed me to use my free time to pursue my hobbies and spend time with friends.”_
## _**228.**_
_**229.**_
_“Having now had first hand hospital experience through medical school placement I have never been more certain that a career of patient care in medicine is something that I am excited to be fully committed to pursuing. It is so rewarding to interact with people every day and to be part of the team which aims to improve their lives._
_**230.** Receiving the bursary meant that I didn’t have to worry financially during the academic year which was a massive relief. I also continued using the laptop which was awarded the year prior, and this continues to be the most useful thing I have for my degree. A laptop like this would have absolutely been unattainable without your support_ .”
_**231.**_
12
_**232.** “This bursary allowed me to focus solely on my studies without the stress of financial burden, ensuring I successfully passed all exams._ _**233. 234.** In addition to this, I was able to purchase resources such as textbooks and medical equipment as needed to aid revision._ _**235.**_ **236.** _Finally, I have been able to pursue areas of interest such as widening participation schemes.”_
## **You made it possible ….237.**
## **238.**
**239. …for us to enable the Patient Reported Experience Measures to be adopted 240.**
**241.**
**242.** Following on from last year’s trial of Patient Reported Experience Measures:
## ~~**243.**~~
- We have implemented digital collection of experience measures
- We have a patient reference group to link with the wider Health Board person centred group.
- We have a Dashboard prototype created specifically for this information
- Data collected is accessible and or provided as evaluation to service teams and or quality and patient safety committee
- 12 Service areas have collected experience measures
- 7 hospital sites have instances of experience collection
- Total volume of experience measures collected: 4938
## **244.**
**245.** The Value Based Healthcare Team worked in partnership with the Director of Nursing Team to implement and embed the experience measure collection. The service areas with access to the dashboard can review and evaluate the results with the aim of making service improvements to benefit the patient experience.
## **You made it possible ….**
**246.**
**…by fundraising for us**
13
**247. 248. Fundraising with a Zip for Staff Wellbeing 249.** Around 30 staff from Complex Care and COVID-19 Thank You - US 1 Testing completed a Zip Wire challenge to raise funds for Health Board’s Employee Wellbeing Service.
**250.** The staff decided to take up the hair-raising challenge following the difficulties experienced during the pandemic, which has impacted the wellbeing of our staff.
**251.** If you would like to donate to their fundraising efforts, please visit their Just Giving page:
**252.** https://www.justgiving.com/fundraising/ABUHB-Wellbeing **253.**
**254. Turn ABUHB Pink**
**255.** Could you be a Pink Champion and organise your teams #Turnpink event?
**256.** Every October, people all over the world show their support for people affected by breast cancer.
**257.** After a very difficult year, Health Board staff are being urged to take part in the biggest
#TurnABUHBpink has ever seen to raise money for the new Breast Care Centre at YYF.
**258.**
**259.** We would like to expand on the previous year’s success and get even more departments involved in helping us. We are aiming to get as many staff and community groups as possible to come together to wear pink and donate.
**260.** We will make sure you have everything you need to make your day fab and full of fun. Get in touch to see how you can “Turn Pink“ leading up to a main event every October, which will take place across all our Health Board sites.
## **261.**
**262.** Local women gathered to create a ‘tastefully topless’ calendar to raise funds for The New Breast Care Unit. These courageous women have had breast cancer or experience of the breast service and feel passionate about having an improved service for all.
**263. You made it possible ….264.**
14
**265.**
**Fundraising and the new Breast Care Unit**
**266. 267. Unified Breast Unit at Ysbyty Ystrad Fawr** – The construction of new purpose built Breast Unit will bring together diagnostic, treatment and surgical services that are currently spread across three hospitals. It was anticipated that work would start on the site of this new unit in October 2022. Work actually commenced on the 17[th] October 2022, with completion expected in December 2023.
_**268.**_
**269.** The Unit will support more than 5,000 women, and a number of men each year. The fundraising aims to support the patients and families to have a comfortable waiting room, counselling rooms with a sensitive design and décor to create a calm, light and dignified environment, where patients and their families can come to terms with their diagnosis and treatment.
**----- Start of picture text -----**
2G
‘
)
**----- End of picture text -----**
## **270.**
**271.** “It’s been a difficult few years with Covid restrictions having a direct effect on how we can continue to raise funds to support our NHS. The number of people continually getting involved in all departments raising money in innovative, tireless and sometimes virtual ways for our new breast unit
- makes you realise just how amazing people are.“
**272. 273.**
**----- Start of picture text -----**
274.
**----- End of picture text -----**
**----- Start of picture text -----**
275.
**----- End of picture text -----**
15
## _**276.**_ **You made it possible ….277. 278.**
**279. 280.**
**…. for us to reflect our experiences creatively**
## **281.**
**282. Calling all Sewers and Scrubbers! 283. 284.** Did you pick up a needle and thread to lend a hand in 2020? Are you still sewing and donating now? Would you be interested in taking part in a free staff & community textile project that will reflect on the amazing efforts people made to provide PPE masks, scrubs, scrubs bags and everything else in 2020?
## **285.**
**286.** We (Gwent Arts in Health & ABUHB) have raised funding through NHS Charities and NESTA for a creative project that aims to reflect our experiences at that difficult time through a series of community textile murals that will be hung in our hospitals. **287.**
**288. 289.** At this stage, we would like anyone who would like to contribute and take part – sharing stories, stitching a piece or two, sharing with others – to get in touch so we can start planning the project together. The project was due to commence in September 2022 but has been delayed due to staffing issues and is hoping to commence in 2023.
**290.**
**291.**
**----- Start of picture text -----**
292.You made it ALL possible ….
293.
294.
295.
296.
16
**----- End of picture text -----**
**297. 298. 299. 300. 301. 302. 303. 304. …. Thank You 305. 306. Other events 307. Official Opening of the Grange University Hospital 308. 309.**
**310.** First Minister Rt Hon Mark Drakeford led the official opening of The Grange University Hospital on Friday 27th August 2021.
**311.** The Grange University Hospital is one of the key components of our Clinical Futures Strategy, which aims to revolutionise healthcare services in the Health Board area by providing care as close to patients’ homes as
possible. **312. 313.** The First Minister said: “The Grange University Hospital has already proved its value to the local community. My thanks go to everyone who worked hard to open the hospital earlier than planned. I’d also like to pay tribute to those NHS staff who work here for all their hard work during these difficult times.”
**314. 315. 316.The Charitable Funds Team 317.** Alison Griffiths – Charitable Funds Manager
17
**----- Start of picture text -----**
318.
319. Linda Proudman – Charitable Funds Officer
320.
,"
321. Wendy Keyte – Charitable Funds Officer
z
322.
323. Sue Turley–Charitable Funds Officer
324.
**----- End of picture text -----**
> With visits to hospitals restricted and internal conferences cancelled, the **325.** Charitable Funds Team will continue to promote charitable funds across **326.** the Health Board albeit in a new way of working with visits replaced by Teams calls.
18
## **327. Charity Governance, Audit and Finance 328. Reference and Administrative Details**
**----- Start of picture text -----**
329. Charity Name: Aneurin Bevan University
Local Health Board Charitable Fund and
Other Related Charities
330. Charity Working Name: Aneurin Bevan
Health Charity
331. Registered Charity No: 1098728
332. Address of Charity: Headquarters
St Cadoc’s Hospital
Lodge Road
Caerleon
Newport
NP18 3XQ
333. Administration of the Charitable Funds:
334. The accounting records and the day-to-day administration of
the funds are undertaken by:
335. Charitable Funds Section
Corporate Finance Department
Aneurin Bevan University Local Health Board
Block C, Mamhilad House
Mamhilad Park Estate
Pontypool, Torfaen
South Wales NP4 0YP
336. Tel No: 01495 765431
337. E-mail: Charitable.funds.ABB@wales.nhs.uk
338.
339. Professional Advisors:
340.
341. Bankers : National Westminster Bank PLC
Government Banking Parklands
342. De Havilland Way
Horwich
Boulton
BL6 4YU
343.
344. Santander
345. Customer Services Centre
346. Bootle
347. Merseyside
L30 4GB
348.
19
**----- End of picture text -----**
**----- Start of picture text -----**
349. Investment Managers: CCLA
Investment Management Limited
1 Angel Lane
London
EC4R 3AB
350.
351. External Auditors: The Auditor General
for Wales
24 Cathedral Road
Cardiff
CF11 9LJ
352. Internal Auditors: NHS Wales Shared
Services Partnership Audit & Assurance
Services
4-5 Charnwood Court
Heol Billingsley
Parc Nantgarw
Cardiff
CF15 7QZ
353. VAT Advisor: Ernst & Young LLP
354. The Paragon
355. Counterslip
356. Bristol
357. BS1 6BX
358.
359. Legal advice for Jacklyn Dawson
Solicitors
TP Price Estate: Equity Chambers
John Frost Square
Newport
South Wales
NP20 1PW
360. Douglas-Jones Mercer Solicitors
361. Axis Court
362. 16 Mallard Way
363. Swansea Vale
364. Llansamlet
365. Swansea
366. SA7 0AJ
367.
368. Estate Management NHS Wales
Shared Services Partnership for TP Price Estate: Specialist
Estate Services
369. 3 [rd] Floor, Companies House
Crown Way
Cardiff
370. Savills
20
**----- End of picture text -----**
**371.** 2 Kingsway **372.** Cardiff **373.** CF10 3FD **374. Valuations for** The District Valuer **13 Clytha Square:** District Valuer Services Ty Rhodfa Ty Glas Road Llanishen Cardiff CF14 5GR
**375. Valuations for Painting:** Bonhams **376.** 7-8 Park Place **377.** Cardiff **378.** CF10 3DP **379. 380.**
381. **Structure, Governance and Management of Charitable Funds**
## **Objects of the Charity**
_**382.**_ The objects of the charity are as follows:
**383.** _**The trustees shall hold the trust funds upon trust to apply income and at their discretion, so far as permissible, capital,**_ **384.** _**for any charitable purpose or purposes relating to the National Health Service.**_ **385.**
**386.** The corporate trustee is Aneurin Bevan University Local Health Board. The executive directors and independent members of the Board share the responsibility for ensuring that the health board fulfils its duties as a corporate trustee in managing charitable funds.
**387.** The chair and independent members of the Board are appointed by the Welsh Government and the executive directors are appointed by the Health Board.
## **388. Trustee Arrangements**
**389.** Aneurin Bevan University Local Health Board is the corporate trustee of the Charity. The directors who served the Aneurin Bevan University Local Health Board during the year to 31[st] March 2022 were as follows:
**390. 391. 392.**
Ann Lloyd CBE Chair Emrys Elias Vice Chair (Until 30[th] September 2021) Pippa Britton Independent Member (Community) (Until 17[th] October 2021)
21
**----- Start of picture text -----**
393. Pippa Britton Interim Vice Chair (From
18 [th] October 2021)
394. Philip Robson Special Advisor to the
Board
395. Chris Koehli Special Advisor to the
Board (Until 17 [th] July 2021)
396. Judith Paget * Chief Executive (Until 31 [st]
October 2021)
397. Glyn Jones * Director of Finance &
Performance / Deputy Chief Executive
(Until 31 [st] October 2021)
398. Interim Chief Executive (From 1 [st]
November 2021)
399. Robert Holcombe* Interim Director of
Finance, Procurement & Value (From 1 [st]
November 2021)
400. Dr James Calvert Medical Director
401. Rhiannon JonesDirector of Nursing
402. Geraint Evans Director of Workforce and
Organisational Development (Until 31 [st]
August 2021)
403. Sarah Simmonds Director of
Workforce and Organisational
Development (From 22 [nd] July 2021)
404. Peter Carr Director of Therapies and
Health Science
405. Dr Sarah Aitken Director of Public
Health & Strategic Partnerships
406. Dr Sarah Aitken Interim Director of
Primary, Community and Mental Health
Services (From 6 [th]
December 2021 to 28 [th] February 2022) in
addition to substantive role of Director of
Public Health & Strategic Partnerships
407. Nicola Prygodzicz Director of Planning,
Digital & IT (Until 31 [st] October 2021)
408. Nicola Prygodzicz Director of Planning,
Digital & IT/Deputy Chief Executive (From
1 [st] November 2021)
409. Nick Wood Director of Primary,
Community and Mental Health (Until 5 [th]
December 2021)
410. Dr Chris O’Connor Interim Director of
Primary, Community and Mental Health
(From 28 [th] February 2022)
411. Katija Dew * Independent Member
(Third Sector)
412. Prof. Helen Sweetland Independent
Member (University)
413. Richard G Clark Independent
Member (Local Authority)
22
**----- End of picture text -----**
|**414.**|Paul Deneen
Independent Member|
|---|---|
||(Community)|
|**415.**|Shelley Bosson Independent Member|
||(Community)|
|**416.**|Louise Wright *Independent Member|
||(Trade Union)|
|**417.**|Keith Sutclife *Associate Independent|
||Member (Chair, Stakeholder Reference|
||Group)|
## **418.**
**419.** * Members of the Charitable Funds Committee.
## **420. Charitable Funds Committee**
**421.** The Board of Aneurin Bevan University Local Health Board, as the corporate trustee, delegates its governance work to the Charitable Funds Committee which is a subcommittee of the Board. The Committee is required to:
- Control, manage and monitor the use of the fund’s resources for the public benefit having regard for the guidance issued by the Charity Commission
- Provide support, guidance and encouragement for all its activities whilst managing and monitoring the receipt of all income
- Ensure that ‘best practice’ is followed in the conduct of all its affairs fulfilling all its legal responsibilities
- Ensure that the Investment Policy approved by the Health Board is adhered to and that performance is continually reviewed whilst being aware of ethical considerations
- Keep the Health Board fully informed on the activity, performance and risks of the charity
|**422.**|Membership of the|Charitable Funds Committee is as follows:|
|---|---|---|
|**423.**
**424.**||Katija Dew
Independent Member|
|||(Chair)|
|**425.**||Louise Wright
Independent Member|
|**426.**||Keith Sutclife
Associate Independent|
|||Member|
|**427.**||Judith Paget
Chief Executive (Until 31st|
|||October 2021)|
|**428.**||Glyn Jones
Director of Finance &|
|||Performance / Deputy Chief Executive|
|||(Until 31stOctober 2021)|
|**429.**||Interim Chief Executive (From 1st|
|||November 2021)|
|**430.**||Robert Holcombe
Interim Director of|
|||Finance, Procurement & Value (From 1st|
|||November 2021)|
|**431.**||23|
**432.** The following also attended the committee with other staff as appropriate for specific agenda items:
|**433.**
Mark Ross
Assistant Director of|
|---|
|Finance, Financial Systems & Services|
|(Until 31stAugust 2021)|
|**434.**
Gwen Kohler
Assistant Director of|
|Finance, Financial Systems & Services|
|(From 1stSeptember 2021)|
|**435.**
Estelle Evans
Head of Financial Services|
|and Accounting
**436.**
Richard HowellsBoard Secretary (Until 30th|
|November 2021)|
|**437.**
Rani Mallison
Board Secretary (From 28th|
|November 2021 Until 13thMarch 2022)|
|**438.**
Rani Mallison
Director of Corporate|
|Governance (From 14thMarch 2022)|
|**439.**
Bryony Codd
Head of Corporate
Governance
**440.**|
**441.** Independent Members are appointed to hold office for a period of up to four years in any one term. During this time, a member may resign or be removed by the Board. The Chair of the Health Board keeps under review the membership of Board Committees to ensure changes are made regularly to refresh the membership of each committee and respond to circumstances when new members join the Board.
## **442. Trustee Induction and Training**
**443.** As part of their induction programme, new Executive and Independent Members of Aneurin Bevan University Local Health Board are made aware of their responsibilities as Board members and as a Corporate Trustee of Aneurin Bevan University Local Health Board Charitable Fund and Other Related Charities.
**444.** At each Charitable Funds Committee meeting, members are advised of any changes in legislation or other requirements relating to charities.
## **445. Public Benefit**
**446.** The objects of the charity are such that all expenditure from the charity is for the benefit of the National Health Service and as such is therefore for ‘public benefit’. The Charitable Funds Committee is aware of its duties in relation to public benefit and ensures that all expenditure fulfils public benefit criteria. This is demonstrated further in this report in the Expended Resources Section of Item 7.
## **447. Management of Funds**
**448.** The Director of Finance is responsible for the day-to-day management and control of the administration of charitable funds and
24
reports to the Charitable Funds Committee. The Director of Finance has responsibility for ensuring that:
- The spending is in accordance with the objects and priorities agreed by the Charitable Funds Committee
- The criteria for spending charitable monies are fully met
- All accounting records are maintained
- Devolved decision making or delegated procedures are in accordance with the policies and procedures set out by the Board on behalf of the corporate trustee
**449.** Within the charity there are 424 internal funds which are delegated to authorised fund holders to approve expenditure within predefined limits. All expenditure requests exceeding £25,000 are subject to Committee approval. A further 6 funds are controlled by the Charitable Funds Committee. The Health Board has a formal procedure that sets out guidance to delegated fund managers to aid them in the process of approving appropriate expenditure from funds.
## **450. Strategic Objectives & Activities**
**451.** Charitable Funds received by the charity are accepted, held and administered as funds held on trust in accordance with the National Health Service (Wales) Act 2006.
**452.** The principal areas in which the funds are applied for the benefit of the public are:
- The purchase of medical equipment for use by Aneurin Bevan University Local Health Board
- The provision of patient welfare activities and amenities
- The education and welfare of staff
**453.** The corporate trustee fulfils its legal duty by ensuring that funds are spent in accordance with the objectives of each fund. The trustee respects the wishes of our generous donors to benefit patient care and advance good health and welfare of patients and staff.
**454.** The charity is constituted of 365 unrestricted and designated funds and 65 restricted funds as at 31[st ] March 2022. Material fund details are shown in Note 22 to the accounts. The current structure of the individual funds reflects the fact that most of the income and expenditure is focused where patients receive services. Fund managers exercise control over the funds donated to their management area.
## **455.**
## **456. Risk Management**
**457.** The main risks associated with the charity relate to:
- Financial controls risk
- Investment risk
25
## **458. Financial Control Risk**
**459.** A financial control procedure has been developed for Charitable Funds and agreed with the Charitable Funds Committee to ensure that there are sufficient management controls in place to ensure regulatory compliance and minimise risk of fraud and error. Specifically, to:
- Ensure the spending is in accordance with the objects of the charity and the priorities agreed by the Charitable Funds Committee
- Ensure the criteria for spending charitable funds are fully met
- Ensure all accounting records are maintained
- Ensure devolved decision making is within specified parameters
**460.** All other Financial Control Procedures covering core financial systems within Aneurin Bevan University Local Health Board are also applied to the financial administration of the charity.
**461.** An internal audit is undertaken periodically, based on the assessment of risk, to evaluate the adequacy of procedures and controls in place and to test compliance against those procedures. Audit Reports are presented to both the Charitable Funds and Audit Committees of the Health Board and this is a key measure in mitigating control risk. The latest Internal Audit report carried out in November 2021 provided substantial assurance on controls covering charitable funds. This definition of assurance generally means there is substantial assurance that arrangements to secure governance, risk management and internal control are suitably designed and applied effectively and that few matters require attention and are compliance or advisory in nature.
**462.** Financial reports showing the income statement and balance sheet together with analysis of significant financial changes are reported to each Charitable Funds Committee meeting. In addition, the Charitable Funds Committee reviews the draft annual accounts while the Board approves the final annual accounts of the charity.
**463.** The external audit of the accounts is undertaken by the Auditor General for Wales. The accounts have this year and historically received an unqualified audit opinion.
## **464. Investment Risk**
**465.** This risk is mitigated by investing in a portfolio of investments through the professional advice of investment managers. Our investment managers, CCLA, usually attend the Charitable Funds Committee annually to present and discuss investment performance and strategy but due to Covid this was not possible this year, but we remain in regular contact with them.
**466.**
26
## **467.**
## **468. Reserves Policy**
**469.** The Charitable Funds Committee reviewed the Charity’s reserve policy, observing both Charity Commission guidance on reserves and the current level of funds held.
**470.**
**471.** If reserves are too high, the charity is retaining funds without justification and this could constitute a breach of trust. If reserves are too low, the fund’s ability to meet future commitments or needs may be at risk.
**472.** The Charity operates on the basis that it only spends what it has received and does not rely on future donations to meet its commitments. Therefore, the reserves should be set at a level sufficient to cover the liabilities that face the charity, namely the cost of administering the funds and any unrealised losses and to hold some money in reserve to act as a buffer against stock market fluctuations.
## **473.** The charity currently holds £266,000 in reserve (2020/2021 £246,000).
**474.** The corporate trustee recognises the need to regularly review the level of reserves and the charity’s activities and operations so that future reserves can be maintained at a level which will mitigate the risk of significant fluctuations in the levels of donations and investments, and provide financial stability for the charity, to ensure that its aim of being able to apply charitable funds within a reasonable time is achieved.
**475. 476.**
## **477. Grant Making Policy**
**478.** The use of our funds is restricted by the governing document which established the charity for purposes connected with the NHS. Grants consist of:
## **479. General Funds**
**480.** This consists of donations received by the charity where no preference as to its expenditure has been expressed by donors. The Charitable Funds Committee decides on how these funds should be spent by receiving requests from across the Health Board. The value of general funds held is £399,000. There are also 3 property valuations totalling £343,000.
**481. Designated Unrestricted Funds**
**482.** These consist of donations where a particular part of the hospital or activity was nominated by the donor at the time their
27
donation was made. Whilst their nomination is not binding on the trustee, the designated funds reflect these nominations. The value of the designated unrestricted funds is £4.060 million.
## **483. Restricted Funds**
**484.** These consist of legacies and grants where a legal document and signed agreement restricts the use to the terms of the bequest/agreement. The value of restricted funds held is £1.242 million.
**485.** During the year the charity made grants of £788,000 representing 85% of the total charitable expenditure. In making grants the trustee requires that the activity falls within the objectives of the charity and relate to the specific purpose of the individual funds from which it is being met.
**486.**
_**487.**_
**488. Review of our Finances, Achievements and Performance**
**489.** The financial statements for 2021-22 are presented at the end of this report.
**490.** The net assets of the Charity as at 31[st] March 2022 were £6.044 million (2021 £5.416 million). Overall net assets increased by £628,000.
## **491. Incoming Resources**
**492.** Incoming resources when comparing against the 2020/21 position were £190,000 lower than the previous year. Donations decreased by £286,000, legacies increased by £128,000, investment income increased by £6,000, grant income decreased by £77,000 and income from charitable activities increased by £39,000.
**493.** The charity received seven legacies during the year, total value £170,000 (2020-2021 eight legacies, value £42,000).
_**494.**_ The charity did not receive any new grants in 2021-2022 but has carried forward grants totalling £99,000 to cover related spend. (2020-2021 eight grant payments, value £176,000).
**495. Expended Resources**
**496.** Charity expenditure for the year totalled £930,000, a decrease of £311,000 from the previous year. Expenditure for the year was across several categories as follows:
**I. Medical Research**
**497.** Total expenditure on medical research was £3,000.
28
## **II. Purchase of Equipment**
_**498.**_ Total expenditure on equipment was £339,000. This was on a range of varied equipment across the Health Board.
## **III. Building and Refurbishment**
499. Total expenditure on building and refurbishment was £31,000. **500. 501. 502. 503.**
## **IV. Patients Education and Welfare**
**504.** Total expenditure on patients’ welfare and amenities was £191,000. This consists of various therapies, seasonal activities, support groups and other items of expenditure to benefit patients.
## **V. Staff Education and Welfare**
**505.** Total expenditure on staff education and welfare was £224,000. The main items consist of seminars, training course fees, textbooks, professional journals and related travelling, subsistence and accommodation expenditure.
## **VI. Fundraising Costs**
**506.** Total expenditure on fundraising costs was £3,000. This mainly relates to events for the new Breast Care Unit at Ysbyty Ystrad Fawr which is due to be opened in December 2023.
## **VII. Support Costs**
**507.** Total expenditure on support costs was £139,000. This includes the audit fee of £16,000 and costs of the charitable funds office and corporate support.
## **508. Investment Properties**
**509.** Investment properties owned by the charity are the T P Price Estate £68,000 and 13, Clytha Square, Newport £250,000.
**510.** The T P Price Estate comprises a leasehold property and a small parcel of land.
**511.**
29
**512.** 13 Clytha Square, Newport is a large Victorian building in the centre of Newport which is rented to Aneurin Bevan University Local Health Board to use as offices.
**513. 514.** Income from the investment properties was £16,000 (20202021 - £15,000). **515. 516. Investments on the Stock Exchange**
**517.** The charity’s investments are managed by CCLA Investment Management Limited, with the aim of managing the funds to achieve a balance of growth and income.
**518.** The charity’s investment policy does not allow managers to invest in those companies whose main business is related to the production or sale of tobacco or alcohol, or those companies involved in the arms trade.
**519.** Details of the investments (including cash held as part of the investment portfolio) and investment performance for 2021-2022 are shown in the table below:
**520.**
**521. Other Investments**
**522.** “The Domestic Chaplain”, a painting donated to the charity many years ago is valued at £25,000 and is currently on loan to the National Museum of Wales, Cardiff.
**523. 524. Key Achievements**
30
## **Funding**
**525.** The charity supported many bids from across the organisation from its general funds and via the 430 delegated charitable fund accounts This support significantly enhanced services for the patients and staff in the Aneurin Bevan University Local Health Board.
**526. Charitable Funds Strategy 527.** Progress on streamlining funds has continued throughout the year. **528.**
**529.**
**530. Fundraising 531.** Our fundraising campaign to supplement a new Breast Care Centre due to be opened in December 2023 in Ysbyty Ystrad Fawr continues.
**532. Investment Management 533.** CCLA continue to provide investment management services to the charity and we continue to invest in their ethical investment fund.
**534. 535. Governance Arrangements 536.** Historically the accounts and trustees annual report have been produced on time with unqualified audit opinions and filed on time with the Charities Commission. **Risks 537.** The Committee has used a considerable amount of its general funds which led to fewer bids being approved during the year, placing more pressure on the Health Board’s internal capital programme. **538. 539.**
## **540. Plans and Objectives for the Future**
**541.** Income continues to be received by the charity due to the generosity of the public in recognition of the care and treatment received from the Health Board. The charity will continue to use its funds to improve patient experience.
**542.** Other objectives for the forthcoming year are to:
31
- Consider the effectiveness of support to staff in working with partners to obtain grants from companies, external organisations and charities for identified equipment and projects.
- Explore the objectives of the charity to ensure they remain relevant and appropriate for the Health Board.
- Ensure that all accounting or charity regulatory requirements are fully complied with.
- Continue to review funds for the redesign of service, in line with Clinical Futures Strategy.
- Retender for Investment Management services.
## **543.**
## **544. Events since the Year End**
- Our investment company believes that the equity market will remain challenging for the next few months as a result of the war in Ukraine and a slowdown in the global economy. There are indications that economic growth will stabilise later in the year rather than deteriorate further, however this remains uncertain and depends principally on whether the global economy avoids recession.
## **545.**
**546.** With the downturn in global economic markets, CCLA has adopted a defensive position, holding higher than normal cash balances and remaining cautious about future investments.
**547.**
- As part of the fundraising led by Captain Sir Tom Moore, NHS Charities Together (NHSCT) have allocated money for supporting Covid-19 projects across the NHS in the UK to be accessed through individual bodies’ charitable funds; we have successfully obtained a grant of £308,000.
**548. 549. 550. Approved on behalf of the Corporate Trustee 551. 552. 553. 554.** ) a **555. 556. 557. 558. Ann Lloyd CBE 559. Chair Aneurin Bevan University Local Health Board**
32
th
560. Date: 25 Ja
561.
ry 2023
33
Aneurin Bevan University Local Health Board Charitable Fund and Other Related Charities Accounts 2021-22
Aneurin Bevan University Local Health Board Charitable Fund and Other
Related Charities
The accounts for Funds Held on Trust.
## **FOREWORD**
The Charity’s accounts and annual report for the year ended 31st March 2022 have been prepared by the Corporate Trustee in accordance with the Charities Act 2011 and the Charities (Accounts and Reports) Regulations 2008.
## **STATUTORY BACKGROUND**
Aneurin Bevan University Local Health Board is the Corporate Trustee of the Funds Held on Trust under the National Health Service (Wales) Act 2006.
The Aneurin Bevan University Local Health Board and Other Related Charities registered with the Charity Commission on 7th January 2011, registration number 1098728.
Page 1
Aneurin Bevan University Local Health Board Charitable Fund and Other Related Charities Accounts 2021-22
## **Statement of Financial Activities for the year ended 31 March 2022**
|**Unrestricted**
**funds**
**Note**
**£000**
**Incoming resources from generated funds:**
Donations, legacies and grants
4
399
Charitable activities
5
126
Investments
7
149
**Total incoming resources**
**674**
**Expenditure on:**
Raising Funds
8
8
Charitable activities
9
716
**Total expenditure**
**724**
Net gains / (losses) on investments
16
539
**Net income / (expenditure)**
489
Transfers between funds
22
0
**Net Movement in funds**
**489**
**Reconciliation of Funds**
Total Funds brought forward
23
4,313
**Total Funds carried forward**
**4,802**|**Restricted**
**Income**
**funds**
**£000**
269
0
38
**307**
0
206
**206**
38
139
0
**139**
1,103
**1,242**|**Total**
**Funds**
**2021-22**
**£000**
**668**
**126**
**187**|
|---|---|---|
|||**981**
**8**
**922**|
|||**930**
**577**|
|||628
**0**|
|||**628**|
|||**5,416**|
|||**6,044**|
## **Statement of Financial Activities for the year ended 31 March 2021**
|**Unrestricted**
**funds**
**Note**
**£000**
**Incoming resources from generated funds:**
Donations, legacies and grants
4
685
Charitable activities
5
87
Investments
7
145
**Total incoming resources**
**917**
**Expenditure on:**
Raising Funds
8
5
Charitable activities
9
954
**Total expenditure**
**959**
Net gains / (losses) on investments
16
526
**Net income / (expenditure)**
484
Transfers between funds
22
(7)
**Net Movement in funds**
**477**
**Reconciliation of Funds**
Total Funds brought forward
23
3,836
**Total Funds carried forward**
**4,313**|**Restricted**
**Restricted**
**Income**
**funds**
**£000**
218
0
36
**254**
0
282
**282**
145
117
7
**124**
979
**1,103**|**Total**
**Total**
**Funds**
**2020-21**
**£000**
**903**
**87**
**181**|
|---|---|---|
|||**1,171**
**5**
**1,236**|
|||**1,241**
**671**|
|||601
**0**|
|||**601**|
|||**4,815**|
|||**5,416**|
Page 2
## Aneurin Bevan University Local Health Board Charitable Fund and Other Related Charities Accounts 2021-22
## **Balance Sheet as at 31 March 2022**
||||**Restricted**|**Total**|Total|
|---|---|---|---|---|---|
||**Unrestricted**||**Income**|**31 March**|31 March|
|||**funds**|**funds**|**2022**|2021|
||**Note**|**£000**|**£000**|**£000**|£000|
|**Fixed assets:**||||||
|Investments|16|4,580|1,247|**5,827**|5,250|
|**Total fixed assets**||**4,580**|**1,247**|**5,827**|**5,250**|
|**Current assets:**||||||
|Debtors|17|211|20|**231**|188|
|Cash and cash equivalents|18|288|85|**373**|238|
|**Total current assets**||**499**|**105**|**604**|**426**|
|**Liabilities:**||||||
|Creditors: Amounts falling due within one year|19|277|110|**387**|260|
|**Net current assets / (liabilities)**||**222**|**(5)**|**217**|**166**|
|**Total net assets / (liabilities)**||**4,802**|**1,242**|**6,044**|**5,416**|
|**The funds of the charity:**||||||
|Restricted income funds|23|0|1,242|**1,242**|1,103|
|Unrestricted income funds|23|4,802|0|**4,802**|4,313|
|**Total funds**||**4,802**|**1,242**|**6,044**|**5,416**|
The notes on pages 5 to 17 form part of these accounts
Approved by the Trustees on 25 January 2023 and signed on its behalf by:
Signed : .................................................................................... Name : .............................................................. (Chair of Trustees) Ann Lloyd
Page 3
Aneurin Bevan University Local Health Board Charitable Fund and Other Related Charities Accounts 2021-22
**Statement of Cash Flows for the year ending 31 March 2022**
|**Note**
**Cash flows from operating activities:**
**Net cash provided by (used in) operating activities**
21
**Cash flows from investing activities:**
Dividend, interest and rents from investments
7
Proceeds from the sale of investments
16
**Net cash provided by (used in) investing activities**
**Change in cash and cash equivalents in the**
**reporting period**
**Cash and cash equivalents at the begining of the**
18
**reporting period**
**Cash and cash equivalents at the end of the**
18
**reporting period**|**Total**
**Funds**
**2021-22**
**£000**
**(52)**
187
0
**187**
**135**
238
**373**|Total
Funds
2020-21
£000
**(100)**
181
28|
|---|---|---|
|||**209**
**109**
129|
|||**238**|
||||
Page 4
Aneurin Bevan University Local Health Board Charitable Fund and Other Related Charities Accounts 2021-22
## **Note on the accounts**
## **1 Accounting Policies**
## **(a) Basis of preparation**
The financial statements have been prepared under the historic cost convention, with the exception of investments which are included at market 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 Trustees consider that there are no material uncertainties about the Charity's ability to continue as a going concern. There are no material uncertainties affecting the current year’s accounts.
In future years, the key risks to the Charity are a fall in income from donations or investment income but the trustees have arrangements in place to mitigate those risks (see the risk management and reserves sections of the annual report for more information).
The Charity meets the definition of a public benefit entity under FRS 102.
## **(b) Funds structure**
Where there is a legal restriction on the purpose to which a fund may be put, the fund is classified as a restricted fund.
Restricted funds are those where the donor has provided for the donation to be spent in furtherance of a specified charitable purpose. The Charity’s restricted funds tend to result from appeals, grants and legacies for specified purposes.
Those funds which are not restricted income funds, are unrestricted income funds which are sub analysed between designated (earmarked) funds where the Trustees have set aside amounts to be used for specific purposes or which reflect the non-binding wishes of donors and unrestricted funds which are at the Trustees’ discretion, including the general fund which represents the Charity’s reserves. The major funds held in each of these categories are disclosed in note 23.
Page 5
Aneurin Bevan University Local Health Board Charitable Fund and Other Related Charities Accounts 2021-22
## **(c) Incoming resources**
Income consists of donations, legacies, grants, income from charitable activities and investment income.
Donations are accounted for when received by the charity. All other income is recognised once the Charity has entitlement to the resources, it is probable (more likely than not) that the resources will be received and the monetary value of incoming resources can be measured with sufficient reliability.
Where there are terms or conditions attached to incoming resources, particularly grants, then these terms or conditions must be met before the income is recognised as the entitlement condition will not be satisfied until that point. Where terms or conditions have not been met or uncertainty exists as to whether they can be met then the relevant income is not recognised in the year but deferred and shown on the balance sheet as deferred income.
## **(d) Incoming resources from legacies**
Legacies are accounted for as incoming resources either upon receipt or where the receipt of the legacy is probable.
Receipt is probable when:
- ●Confirmation has been received from the representatives of the estate(s) that probate has been granted
- ●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 or are within the Charity’s control.
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.
## **(e) Resources expended and irrecoverable VAT**
All expenditure is accounted for on an accruals basis and has been classified under headings 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:
- ●There is a present legal or constructive obligation resulting from a past event
- ●It is more likely than not that a transfer of benefits (usually a cash payment) will be required in settlement
- ●The amount of the obligation can be measured or estimated reliably.
Irrecoverable VAT is charged against the category of resources expended for which it was incurred.
## **(f) Support costs**
Support costs are those costs which do not relate directly to a single activity. These include staff costs, costs of administration, internal and external audit costs. Support costs have been apportioned between fundraising costs and charitable activities on an appropriate basis. The analysis of support costs and the bases of apportionment applied are shown in note 12.
Page 6
Aneurin Bevan University Local Health Board Charitable Fund and Other Related Charities Accounts 2021-22
## **(g) Fundraising costs**
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. The costs of generating funds consists of expenses for fundraising activities.
## **(h) Charitable activities**
Costs of charitable activities comprise all costs incurred in the pursuit of the 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 9.
## **(i) Fixed Asset Investments**
Ethical Fund Investments are stated at mid-market value as at the balance sheet date, and Property Fund investments are stated at net asset value. Investment properties are included at their open market valuation. 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 mid-market price, excluding dividend.
Other assets are valued on an open market basis by a professional valuer.
## **(j) Debtors**
Debtors are amounts owed to the charity. They are measured on the basis of their recoverable amount.
## **(k) 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.
## **(l) 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.
## **(m) Realised 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 carrying value (purchase date if later). Unrealised gains and losses are calculated as the difference between the market value at the year end and opening carrying value (or purchase date if later).
Page 7
Aneurin Bevan University Local Health Board Charitable Fund and Other Related Charities Accounts 2021-22
## **2. Key Judgements and Assumptions**
Average fund balances are used to apportion certain balances between restricted and unrestricted funds, which is deemed to be the most appropriate methodology to use.
There are no material assumptions judged to affect the 2021/22 accounts.
As at 31st March 2022, there is no other information to show that assets/liabilities would need to be materially adjusted during 2022/23.
## **3. Related party transactions**
The Aneurin Bevan University Local Health Board is the sole beneficiary of the charity.
The charity had significant material transactions with Aneurin Bevan University Local Health Board as follows:
||**2021-22**|**2021-22**|**As at 31st March 2022**|**As at 31st March 2022**|
|---|---|---|---|---|
||**Expenditure**
**to related**
**party**|**Income**
**from**
**related**
**party**|**Amounts**
**owed to**
**related**
**party**|**Amounts**
**due from**
**related**
**party**|
||£000|£000|£000|£000|
|Aneurin Bevan UniversityLocal Health Board|930|24|175|5|
The Corporate Trustee has interests in related parties as follows:
|**Member**|**Related Organisation**|**Relationship with**
**Related Party**|**2021-22**|**2021-22**|**As at 31st March 2022**|**As at 31st March 2022**|
|---|---|---|---|---|---|---|
||||**Expenditure**
**to related**
**party**|**Income**
**from**
**related**
**party**|**Amounts**
**owed to**
**related**
**party**|**Amounts**
**due from**
**related**
**party**|
||||£000|£000|£000|£000|
|Robert Holcombe|JW Bowkett (Electrical
Installation)Ltd|Son is an Employee of
the Company|1|0|0|0|
|Emrys Elias|Velindre NHS Trust|Spouse is Employee
(Seconded to Health
Inspectorate Wales)|0|0|0|0|
|Richard G Clark|Torfaen County Borough
Council|County Borough
Councillor, Deputy Leader
and Elected Member|
0|0|0|0|
|Prof Helen Sweetland|Cardiff University|Employed|6|1|6|1|
The Corporate Trustee has interests in a number of related parties. All transactions with those related parties have been reviewed and there are nil transactions except for those listed above.
Page 8
Aneurin Bevan University Local Health Board Charitable Fund and Other Related Charities Accounts 2021-22
## **3. Related party transactions (continued)**
In 2020-21 the charity had significant material transactions with Aneurin Bevan University Local Health Board as follows:
||**2020-21**|**2020-21**|**As at 31st March 2021**|**As at 31st March 2021**|
|---|---|---|---|---|
||**Expenditure**
**to related**
**party**|**Income**
**from**
**related**
**party**|**Amounts**
**owed to**
**related**
**party**|**Amounts**
**due from**
**related**
**party**|
||£000|£000|£000|£000|
|Aneurin Bevan UniversityLocal Health Board|1,170|17|25|32|
The Corporate Trustee had interests in related parties as follows:
|**Member**|**Related Organisation**|**Relationship with**
**Related Party**|**2020-21**|**2020-21**|**As at 31st March 2021**|**As at 31st March 2021**|
|---|---|---|---|---|---|---|
||||**Expenditure**
**to related**
**party**|**Income**
**from**
**related**
**party**|**Amounts**
**owed to**
**related**
**party**|**Amounts**
**due from**
**related**
**party**|
||||£000|£000|£000|£000|
|Glyn Jones|NHS Wales Informatics
Service (Hosted by
Velindre NHS Trust)|Sister is Project
Manager|1|0|0|0|
||Swansea Bay University
Health Board|Niece is on the NHS
Wales Graduate
Finance Training
Scheme|0|21|0|0|
|David Street|Caerphilly County
Borough Council|Corporate Director,
Social Services and
Housing|0|1|0|0|
The Corporate Trustee has interests in a number of related parties. All transactions with those related parties have been reviewed and there are nil transactions except for those listed above.
Page 9
Aneurin Bevan University Local Health Board Charitable Fund and Other Related Charities Accounts 2021-22
## **4. Income from donations, legacies and grants**
|Donations
Legacies
Grants|**Restricted**
**Total**
Total
**Unrestricted**
**Income**
**2021-22**
2020-21
**funds**
**funds**
**£000**
**£000**
**£000**
£000
399
0
**399**
685
0
170
**170**
42
0
99
**99**
176
**399**
**269**
**668**
**903**|
|---|---|
## **5. Income from charitable activities**
|||**Restricted**|**Total**|Total|
|---|---|---|---|---|
||**Unrestricted**|**Income**|**2021-22**|2020-21|
||**funds**|**funds**|||
||**£000**|**£000**|**£000**|£000|
|Course income|101|0|**101**|73|
|Other income|25|0|**25**|14|
||**126**|**0**|**126**|**87**|
## **6. Role of volunteers**
Volunteers have the trust and understanding of the community and are invaluable in engaging with our patients and providing support to paid professionals . The services they provide include:
- ●welcome services at our hospitals, directing patients and visitors
- ●befriending service for patients in our hospitals and nursing homes
- ●end of life companion support for patients in our hospitals
- ●operating buffet /coffee bars through volunteer organisations such as the League of Friends
- ●raising funds to purchase equipment across our hospitals.
Due to the pandemic and in order to comply with Government guidelines and hospital infection control measures, some of these volunteer services were suspended during the year.
In accordance with the SORP, due to the absence of any reliable measurement basis, the contribution of these volunteers is not recognised in the accounts.
## . **7. Gross investment income**
|Fixed asset equity and similar investments
Short term investments, deposits and cash
on deposit|**Unrestricted**
**funds**
**£000**
149
0
**149**|**Restricted**
**Income**
**funds**
**£000**
38
0
**38**|**Total**
Total
**2021-22**
2020-21
**£000**
£000
**187**
181
**0**
0
**187**
**181**|
|---|---|---|---|
Page 10
Aneurin Bevan University Local Health Board Charitable Fund and Other Related Charities Accounts 2021-22
## **8. Analysis of expenditure on raising funds**
|Fundraising office
Fundraising events
Investment management
Support costs|**Unrestricted**
**funds**
**£000**
0
3
0
5
**8**|**Restricted**
**Income**
**funds**
**£000**
0
0
0
0
**0**|**Total**
Total
**2021-22**
2020-21
**£000**
£000
**0**
0
**3**
1
**0**
0
**5**
4
**8**
**5**|
|---|---|---|---|
The fundraising office costs relate to the new Breast Care unit and are no longer being incurred by the Charity The investment management fee is shown as nil as this is deducted from capital held by the investment management company.
## **9. Analysis of charitable activity**
|**Grant funded**
**activity**
**£000**
Medical research
3
Purchase of new equipment
339
Building and refurbishment
31
Staff education and welfare
224
Patient education and welfare
191
**788**|**Support**
**costs**
**£000**
0
58
5
38
33
**134**|**Total**
Total
**2021-22**
2020-21
**£000**
£000
**3**
10
**397**
505
**36**
18
**262**
371
**224**
332
**922**
**1,236**|
|---|---|---|
## **10. Analysis of grants**
The majority of grants are made to the Health Board to provide for the care of NHS patients in furtherance of our charitable aims. The charity makes grants to individuals from one specific fund which is used to support nominated medical students from deprived areas. The total cost of making grants, including support costs, is disclosed on the face of the Statement of Financial Activities and the actual funds spent on each category of charitable activity is disclosed in note 9.
The trustees operate a scheme under which Fund Account Managers control how the Charity's designated funds should be spent. The day to day disbursements are in accordance with the directions set out by the trustees in the Charity's Standing Orders and Financial Instructions.
Where undesignated funds exist, the trustees do make grant awards based on applications from across the Health Board.
Page 11
Aneurin Bevan University Local Health Board Charitable Fund and Other Related Charities Accounts 2021-22
## **11. Movements in funding commitments**
|Opening balance at 1 April
Movement in funding commitments
**Closing balance at 31 March 2022**|**Current**
**liabilities**
**£000**
406
(132)
**274**|**Non-current**
**liabilities**
**£000**
0
0
**0**|**Total**
**31 March**
**2022**
**£000**
**406**
**(132)**
**274**|Total
31 March
2021
£000
501
(95)|
|---|---|---|---|---|
|||||**406**|
As described in notes 9 and 10, the charity awards a number of grants in the year. Many grants are awarded and paid out in the same financial year. However, some grants are paid over a longer period.
## **12. Apportionment of support costs**
Support and overhead costs are allocated between fundraising activities and charitable activities. Governance costs are those support costs which relate to the strategic and day to day management of a charity.
|**Governance**
External audit
Finance and administration
**Total governance**
Finance and administration
**Total Finance and Administration**
Raising funds
Charitable activities|**Raising **
**funds**
**£000**
0
4
**4**
1
**1**
**5**
**Unrestricted**
**funds**
**£000**
5
106
**111**|**Charitable**
**activities**
**£000**
16
61
**77**
57|**Total**
**2021-22**
**£000**
**16**
**65**
**81**
**58**
**58**
**139**
**Total**
**Funds**
**2021-22**
**£000**
**5**
**134**
**139**|Total
2020-21
**Basis**
£000
9
Average fund balance
61
Average fund balance
**70**
56
Average fund balance
**56**
**126**
Total
Funds
2020-21
£000
4
122
**126**|
|---|---|---|---|---|
|||**57**|||
|||**134**|||
|||**Restricted**
**Income**
**funds**
**£000**
0
28
**28**|||
## **13. Trustees' remuneration, benefits and expenses**
The charity does not make any payments for remuneration nor to reimburse expenses to the charity trustees for their work undertaken as trustee.
## **14. Analysis of staff costs**
The charity has no employees. Staff services are provided to the charity by Aneurin Bevan University Local Health Board, the Corporate Trustee of the charity, which has received reimbursement of £200,198 (2020-21: £359,974) for these services.
Page 12
Aneurin Bevan University Local Health Board Charitable Fund and Other Related Charities Accounts 2021-22
## **15. Auditors remuneration**
The auditors remuneration of £16,314 (2020-21: £9,000) related solely to the audit of the statutory annual report and accounts.
## **16. Fixed asset investments**
## **Movement in fixed assets investments**
|Market value brought forward
Add: additions to investments at cost
Less disposals at carrying value
Add any gain / (loss) on revaluation
Movement of cash held as part of the
investment portfolio
**Market value as at 31st March 2022**|**Investment**
**Properties**
**£000**
221
0
0
97
0
**318**|**Investments**
**Listed**
**on Stock**
**Exchange**
**£000**
5,004
0
0
480
0
**5,484**|**Cash**
**Held in**
**Investment**
**Portfolio**
**£000**
0
0
0
0
0
**0**|**Other**
**Assets**
**£000**
25
0
0
0
0
**25**|**Total**
Total
**2021-22**
2020-21
**£000**
£000
**5,250**
4,607
**0**
0
**0**
(28)
**577**
671
**0**
0
**5,827**
**5,250**|
|---|---|---|---|---|---|
All investments are carried at their market value.
The investment valuation has been performed by CCLA Investment Management Limited.
The valuation of investment properties, consisting of a freehold ground rent and a small parcel of land, is based on a professional assessment of market value, by independent RICS (Royal Institute of Chartered Surveyors) qualified valuers at least every five years.
The significance of financial instruments to the ongoing financial sustainability of Aneurin Bevan University Health Board Charitable Fund is considered in the risk management section of the trustees’ annual report.
The Charity receive the majority of their income in the form of donations. However, significant investments are made and are the source of the main financial risk.
Interest rate risk - the Charity is exposed to fluctuations in interest rates on the monies invested in deposits and the stock market.
Liquidity risk - the majority of expenditure is financed from donations and legacies and there are no borrowings. The Charity is not, therefore, exposed to significant liquidity risk.
Page 13
Aneurin Bevan University Local Health Board Charitable Fund and Other Related Charities Accounts 2021-22
## **17. Analysis of current debtors**
|**Debtors under 1 year**
Accrued income
Trade Debtors
Prepayments|**Total**
**31 March**
**2022**
**£000**
**71**
**133**
**27**
**231**|Total
31 March
2021
£000
96
81
11|
|---|---|---|
|||**188**|
## **18. Analysis of cash and cash equivalents**
|Current Accounts
Petty Cash|**Total**
**31 March**
**2022**
**£000**
**372**
**1**
**373**|Total
31 March
2021
£000
237
1|
|---|---|---|
|||**238**|
No cash or cash equivalents or current asset investments are held in non-cash investments or outside of the UK.
All of the amounts held on interest bearing deposit are available to spend on charitable activities.
## **19. Analysis of liabilities**
|**Creditors under 1 year**
Trade creditors
Deferred Income
Accruals
**Total creditors**|**Total**
**31 March**
**2022**
**£000**
**259**
**125**
**3**
**387**|Total
31 March
2021
£000
59
200
1|
|---|---|---|
|||**260**|
## **20. Analysis of Deferred Income**
|Grant Income
Other Income|**Total**
**1 April**
**2021**
**Deferred**
**Released**
**£000**
**£000**
**£000**
184
12
(112)
16
41
(16)
**200**
**53**
**(128)**|**Total**
**31 March**
**2022**
**£000**
**84**
**41**|
|---|---|---|
|||**125**|
Page 14
Aneurin Bevan University Local Health Board Charitable Fund and Other Related Charities Accounts 2021-22
## **21. Reconciliation of net income / expenditure to net cash flow from operating activities**
|**Net income / (expenditure) (per Statement of**
**Financial Activities)**
**Adjustment for:**
(Gains) / losses on investments
Dividends, interest and rents from investments
(Increase) / decrease in debtors
Increase / (decrease) in creditors
**Net cash provided by (used in) operating activities**|**Total**
Total
**2021-22**
2020-21
**£000**
£000
**628**
601
**(577)**
(671)
**(187)**
(181)
**(43)**
45
**127**
106
**(52)**
**(100)**|
|---|---|
## **22. Transfer between funds**
Transfers have been actioned between Unrestricted funds during 2021/22 to streamline the number of funds in line with the Charitable Funds Committee plans to merge and reduce the number of Charitable Funds.
## **23. Analysis of funds**
## **a. Analysis of restricted fund movements**
|Royal Gwent Childrens Ward Legacy
Royal Gwent Coronary Care Legacy
ABUHB Calcraft Legacy Fund
Nevill Hall Rheumatology Legacy
Renal Unit Legacy
Nevill Hall Coronary Care Legacy
Royal Gwent Haematology Legacy
Royal Gwent Breast Care Legacy
Chepstow General Legacy
Other - 56 restricted designated funds|**Balance**
**1 April**
**2021**
**£000**
153
112
0
96
82
75
58
58
50
419
**1,103**|**Income**
**£000**
5
3
100
3
2
2
2
2
1
187
**307**|**Expenditure**
**£000**
(13)
(3)
0
(2)
(12)
(5)
(1)
(1)
(1)
(168)
**(206)**|**Transfers**
**£000**
0
0
0
0
0
0
0
0
0
0
**0**|**Gains**
**Balance**
**and**
**31 March**
**losses**
**2022**
**£000**
**£000**
5
150
4
116
0
100
3
100
3
75
3
75
2
61
2
61
2
52
14
452
**38**
**1,242**|
|---|---|---|---|---|---|
The material funds specified in the above note will vary from year to year dependent on the closing year end balance.
We consider that a closing fund balance of £50,000 or greater are material for disclosure in these accounts.
Page 15
Aneurin Bevan University Local Health Board Charitable Fund and Other Related Charities Accounts 2021-22
## **23. Analysis of funds (continued)**
The objects of each of the restricted funds are as follows:
The Royal Gwent Hospital Children's Ward Legacy Fund was bequeathed to the charity for the benefit of the Children's Ward. A proposal for the purchase of various equipment to improve patient care and access was approved by the Charitable Funds Committee.
The Royal Gwent Hospital Coronary Care Unit Legacy Fund was bequeathed to the charity for the provision of medical facilities, towards the cost of providing equipment for the heart unit at the hospital.
The ABUHB Calcraft Legacy fund was bequeathed to the charity to assist in colonoscopy practices within the Health Board.
The Nevill Hall Rheumatology Legacy Fund was bequeathed to the charity for the use of the Rheumatology department at the hospital.
The Renal Unit Legacy Fund was bequeathed to the charity for the purpose connected with the research and treatment of patients under haemodialysis treatment (kidney unit).
The Nevill Hall Coronary Care Legacy Fund was bequeathed to the charity for the use of the heart unit at the hospital.
The Royal Gwent Haematology Fund was bequeathed to the charity for the Haematology Unit at the Royal Gwent Hospital.
The Royal Gwent Breast Care Legacy Fund was bequeathed to the charity for the Breast Care Unit at the Royal Gwent Hospital.
The Chepstow General Legacy was bequeathed to the charity for the Chepstow Community Hospital.
The other 56 restricted funds also related to monies bequeathed to the charity for various wards and departments.
Page 16
Aneurin Bevan University Local Health Board Charitable Fund and Other Related Charities Accounts 2021-22
## **23. Analysis of funds (continued)**
## **b. Analysis of unrestricted and material designated fund movements**
|**Balance**
**1 April**
**2021**
**£000**
ABUHB Charitable Funds Committee
186
ABUHB Breast Centre
171
Royal Gwent Property, 13 Clytha Square
117
St Woolos Springfield Fund
107
ABUHB Post Graduate Fund
106
Royal Gwent Casting Techniques Course
87
ABUHB Covid-19
85
Nevill Hall Voluntary Body
96
Royal Gwent Post Grad Eye
39
ABUHB Employee Well Being Service
60
Grange Critical Care Unit
110
ABUHB C.H.A.aT Volunteer Service
75
ABUHB Ffrind I Mi Volunteer Service
95
Nevill Hall Oncology Rehabilitation
73
Monmouth Chippenham Community Nurses
78
Royal Gwent Breast Care Unit
69
Royal Gwent Property, TP Price
54
Royal Gwent Prostate Cancer Fund
60
ABUHB Volunteering (Corporate)
42
ABUHB Rheumatology
56
Ysbyty Ystrad Fawr Adult Medicine
55
Nevill Hall Windsor Suite
32
Other - 343 unrestricted designated funds
2,460
**4,313**|**Income**
**£000**
12
57
3
5
18
51
3
3
27
8
3
3
2
2
2
2
2
16
2
2
20
431
**674**|**Expenditure**
**£000**
(22)
(8)
0
(3)
(8)
(5)
(28)
(7)
(2)
(3)
(38)
(18)
(18)
(2)
(11)
(2)
(33)
(2)
(1)
(2)
(4)
(1)
(506)
**(724)**|**Transfers**
**£000**
216
10
36
0
(10)
45
20
45
(362)
**0**|**Gains**
**and**
**losses**
**£000**
7
6
97
4
4
3
3
3
3
2
3
3
3
3
3
3
0
2
1
2
2
1
381
**539**|**Balance**
**31 March**
**2022**
**£000**
399
236
250
111
107
103
101
95
88
86
83
83
83
76
72
72
68
62
58
58
55
52
2,404|
|---|---|---|---|---|---|
||||||**4,802**|
The trustees have delegated all unrestricted funds as designated funds to the ward or department the donations were intended for.
The material funds specified in the above note will vary from year to year dependent on the closing year end balance.
We consider that a closing fund balance of £50,000 or greater are material for disclosure in these accounts.
## **24. Events after the reporting period**
Our CCLA investments have increased in value to pre-pandemic levels but growth in the year ahead is expected to be challenging as a result of the war in Ukraine and a slow down in the global economy.
Page 17
Aneurin Bevan University Local Health Board Charitable Fund and Other Related Charities Accounts 2021-22
## **Statement of Trustee's Responsibilities**
The law applicable to charities in England and Wales requires the Trustee to prepare financial statements for each financial year which give a true and fair view of the charity's financial activities during the year and its financial position at the end of the year. In preparing financial statements giving a true and fair view, the Trustee should follow best practice and :
- select suitable accounting policies and apply them consistently;
- observe the methods and principles of the Charities SORP;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable accounting standards and statements of recommended practice have been followed, subject to any departures disclosed and explained in the financial statements; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The Trustee is responsible for keeping accounting records which disclose with reasonable accuracy the financial position of the charity and which enable them to ascertain the financial position of the charity and which enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. The Trustee is responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The Trustee confirms that they have complied with the above requirements.
## **By order of the trustee**
Ann Lloyd Trustee
Rob Holcombe Dated: Financial Trustee
Page 18
Aneurin Bevan University Local Health Board Charitable Fund and Other Related Charities Accounts 2021-22
## **The independent auditor’s report of the Auditor General for Wales to the trustee of Aneurin Bevan University Local Health Board Charitable Fund and Other Related Charities**
## **Opinion on financial statements**
I have audited the financial statements of Aneurin Bevan University Local Health Board Charitable Fund and Other Related Charities for the year ended 31 March 2022 under the Charities Act 2011. These comprise the Statement of Financial activities, Balance Sheet, Statement of Cash Flows and related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In my opinion the financial statements:
- give a true and fair view of the state of affairs of the charity as at 31 March 2022 and of its incoming resources and application of resources for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the Charities Act 2011.
## **Basis for opinion**
I conducted my audit in accordance with applicable law and International Standards on Auditing in the UK (ISAs (UK)) and Practice Note 10 'Audit of Financial Statements of Public Sector Entities in the United Kingdom'. My responsibilities under those standards are further described in the auditor’s responsibilities for the audit of the financial statements section of my report. I am independent of the charity in accordance with the ethical requirements that are relevant to my audit of the financial statements in the UK including the Financial Reporting Council’s Ethical Standard, and I have fulfilled my other ethical responsibilities in accordance with these requirements. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion.
## **Conclusions relating to going concern**
In auditing the financial statements, I have concluded that the use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work I have performed, I have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the body's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from when the financial statements are authorised for issue.
My responsibilities and the responsibilities of the trustee with respect to going concern are described in the relevant sections of this report.
## **Other information**
The other information comprises the information included in the annual report other than the financial statements and my auditor’s report thereon. The trustee is responsible for the other information contained within the annual report. My opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in my report, I do not express any form of assurance conclusion thereon. My responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If I identifiy such material inconsistencies or apparent material misstatements, I am required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work I have performed, I conclude that there is a material misstatement of this other information, I am required to report that fact.
I have nothing to report in this regard.
Page 19
Aneurin Bevan University Local Health Board Charitable Fund and Other Related Charities Accounts 2021-22
## **Report on other requirements**
## **Matters on which I report by exception**
I have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require me to report to you if, in my opinion:
- the information given in the financial statements is inconsistent in any material respect with the trustees’ report;
- sufficient accounting records have not been kept, or returns adequate for my audit have not been received from branches not visitied by my team;
- the financial statements are not in agreement with the accounting records and returns; or
- I have not received all of the information and explanations I require for my audit.
## **Responsibilities**
## **Responsibilities of the trustee for the financial statements**
As explained more fully in the statement of trustee’s responsibilities set out on page 18, the trustee is responsible for preparing the financial statements in accordance with the Charities Act 2011, for being satisfied that they give a true and fair view, and for such internal control as the trustee determines 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 trustee is 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 deemed inappropriate.
## **Auditor’s responsibilities for the audit of the financial statements**
I have been appointed as auditor under section 150 of the Charities Act 2011 and report in accordance with regulations made under section 154 of that Act.
My objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes my opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. I design procedures in line with my responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud.
My procedures included the following:
- Enquiring of management, including obtaining and reviewing supporting documentation relating to Aneurin Bevan University Local Health Board Charitable Fund and Other Related Charities' policies and procedures concerned with:
- identifying, evaluating and complying with laws and regulations an whether they were aware of any instances on non-compliance;
- detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; and
- the internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations.
Page 20
Aneurin Bevan University Local Health Board Charitable Fund and Other Related Charities Accounts 2021-22
- Considering as an audit team how and where fraud might occur in the financial statements and any potential indicators of fraud. As part of this discussion, I identified potential for fraud in the following areas: revenue recognition and posting of unusual journals.
- Obtaining an understanding of Aneurin Bevan University Local Health Board Charitable Fund and Other Related Charities' framework of authority as well as other legal and regulatory frameworks that the Aneurin Bevan University Local Health Board Charitable Fund and Other Related Charities operated in, focusing on those laws and regulations that had a direct effect on the financial statements or that had a fundamental effect on the operations of Aneurin Bevan University Local Health Board Charitable Fund and Other Related Charities.
In addition to the above, my procedures to respond to identified risks included the following:
- reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with relevant laws and regulations discussed above;
- reading minutes of meetings of those charged with governance and the trustee; and
- in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.
I also communicated relevant identified laws and regulations and potential fraud risks to all audit team and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.
The extent to which my procedures are capable of detecting irregularities, including fraud, is affected by the inherent difficulty in detecting irregularities, the effectiveness of the Aneurin Bevan University Local Health Board Charitable Fund and Other Related Charities' controld, and the nature, timing and extent of audit procedures performed.
A further description of the auditor’s responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website www.frc.org.uk/auditorsresponsibilities. This description forms part of my auditor’s report.
Adrian Crompton Auditor General for Wales 27 January 2023
24 Cathedral Road Cardiff CF11 9LJ
Page 21
Audit of Accounts Report – Aneurin Bevan University Local Health Board Charitable Fund and Other Related Charities
Audit year: 2021-22 Date issued: January 2023 Document reference: 3308A2023
This document has been prepared as part of work performed in accordance with statutory functions.
In the event of receiving a request for information to which this document may be relevant, attention is drawn to the Code of Practice issued under section 45 of the Freedom of Information Act 2000. The section 45 code sets out the practice in the handling of requests that is expected of public authorities, including consultation with relevant third parties. In relation to this document, the Auditor General for Wales and the Wales Audit Office are relevant third parties. Any enquiries regarding disclosure or re-use of this document should be sent to the Wales Audit Office at infoofficer@audit.wales.
We welcome correspondence and telephone calls in Welsh and English. Corresponding in Welsh will not lead to delay. Rydym yn croesawu gohebiaeth a galwadau ffôn yn Gymraeg a Saesneg. Ni fydd gohebu yn Gymraeg yn arwain at oedi.
## Contents
We intend to issue an unqualified audit report on your Accounts and there are some issues to report to you prior to their approval.
|Audit of Accounts Report||
|---|---|
|Introduction|4|
|Proposed audit opinion|4|
|Significant issues arising from the audit|5|
|Recommendations|5|
|Appendices||
|Appendix 1 – Final Letter of Representation|6|
|Appendix 2 – Proposed Audit Report|9|
|Appendix 3 – Summary of Corrections Made|13|
|Appendix 4 – Follow up of previous year’s audit recommendations|14|
Page 3 of 22 - Audit of Accounts Report – Aneurin Bevan University Local Health Board Charitable Fund and Other Related Charities
## Audit of Accounts Report
## Introduction
- 1 We summarise the main findings from our audit of your 2021-22 Annual Report and accounts in this report.
- 2 We have already discussed these issues with Assistant Director of Finance (Financial Systems & Services), the Head of Financial Services and Accounting and their team.
- 3 Auditors can never give complete assurance that accounts are correctly stated. Instead, we work to a level of ‘materiality’. This level of materiality is set to try to identify and correct misstatements that might otherwise cause a user of the accounts into being misled.
- 4 We set this level at £18,600 for this year’s audit.
- 5 There are some areas of the accounts that may be of more importance to the reader, and we have set a lower materiality level for these, as follows:
- Related Party Transactions £1,000
- 6 We have now substantially completed this year’s audit.
- 7 In our professional view, we have complied with the ethical standards that apply to our work; remain independent of yourselves; and our objectivity has not been compromised in any way. There are no relationships between ourselves and yourselves that we believe could undermine our objectivity and independence.
## Proposed audit opinion
- 8 We intend to issue an unqualified audit opinion on this year’s accounts once you have provided us with a Letter of Representation based on that set out in **Appendix 1** .
- 9 We issue a ‘qualified’ audit opinion where we have material concerns about some aspects of your accounts; otherwise, we issue an unqualified opinion.
- 10 The Letter of Representation contains certain confirmations we are required to obtain from you under auditing standards along with confirmation of other specific information you have provided to us during our audit.
- 11 Our proposed audit report is set out in **Appendix 2** .
Page 4 of 22 - Audit of Accounts Report – Aneurin Bevan University Local Health Board Charitable Fund and Other Related Charities
## Significant issues arising from the audit
## **Uncorrected misstatements**
- 12 There are no misstatements identified in the accounts, which remain uncorrected.
## **Corrected misstatements**
- 13 There were initially misstatements in the accounts that have now been corrected by management. These are set out with explanations in **Appendix 3.**
## **Other significant issues arising from the audit**
- 14 In the course of the audit, we consider a number of matters relating to the accounts and report any significant issues arising to you. There were no issues arising in these areas this year.
## Recommendations
- 15 There were no recommendations arising from our audit, however we have followed up audit recommendations made in prior year’s audits as set out in **Appendix 4** . Where any actions are outstanding, we will continue to monitor progress and report it to you in next year’s report.
Page 5 of 22 - Audit of Accounts Report – Aneurin Bevan University Local Health Board Charitable Fund and Other Related Charities
## Appendix 1
## Final Letter of Representation
[Audited body’s letterhead]
Auditor General for Wales
Wales Audit Office 24 Cathedral Road Cardiff CF11 9LJ
25 January 2023
## **Representations regarding the 2021-22 financial statements**
This letter is provided in connection with your audit of the financial statements of Aneurin Bevan University Local Health Board Charitable Fund and Other Related Charities for the year ended 31 March 2022 for the purpose of expressing an opinion on their truth and fairness and their proper preparation.
We confirm that to the best of our knowledge and belief, having made enquiries as we consider sufficient, we can make the following representations to you.
## **Management representations**
## **Responsibilities**
We have fulfilled our responsibilities for:
- the preparation of the financial statements in accordance with legislative requirements and the Charities Act 2011; in particular, the financial statements give a true and fair view in accordance therewith;
- the design, implementation, maintenance and review of internal control to prevent and detect fraud and error.
## **Information provided**
We have provided you with:
- full access to:
- all information of which we are aware that is relevant to the preparation of the financial statements such as books of account and supporting documentation, minutes of meetings and other matters;
Page 6 of 22 - Audit of Accounts Report – Aneurin Bevan University Local Health Board Charitable Fund and Other Related Charities
- additional information that you have requested from us for the purpose of the audit; and
- unrestricted access to staff from whom you determined it necessary to obtain audit evidence;
- the results of our assessment of the risk that the financial statements may be materially misstated as a result of fraud;
- our knowledge of fraud or suspected fraud that we are aware of and that affects Aneurin Bevan University Local Health Board Charitable Fund and Other Related Charities and involves:
- management;
- employees who have significant roles in internal control; or
- others where the fraud could have a material effect on the financial statements;
- our knowledge of any allegations of fraud, or suspected fraud, affecting the financial statements communicated by employees, former employees, regulators, or others;
- our knowledge of all known instances of non-compliance or suspected noncompliance with laws and regulations whose effects should be considered when preparing the financial statements;
- the identity of all related parties and all the related party relationships and transactions of which we are aware.
## **Financial statement representations**
All transactions, assets and liabilities have been recorded in the accounting records and are reflected in the financial statements.
The methods, the data and the significant assumptions used in making accounting estimates, and their related disclosures are appropriate to achieve recognition, measurement or disclosure that is reasonable in the context of the applicable financial reporting framework.
Related party relationships and transactions have been appropriately accounted for and disclosed.
All events occurring subsequent to the reporting date which require adjustment or disclosure have been adjusted for or disclosed.
All known actual or possible litigation and claims whose effects should be considered when preparing the financial statements have been disclosed to the auditor and accounted for and disclosed in accordance with the applicable financial reporting framework.
The financial statements are free of material misstatements, including omissions. The effects of uncorrected misstatements identified during the audit are immaterial, both
Page 7 of 22 - Audit of Accounts Report – Aneurin Bevan University Local Health Board Charitable Fund and Other Related Charities
individually and in the aggregate, to the financial statements taken as a whole. A summary of these items is set out below:
## **Representations by the Trustee of Aneurin Bevan University Health Board Charitable Fund and Other Related Charities**
We acknowledge that the representations made by management, above, have been discussed with us.
We acknowledge our responsibility for the preparation of true and fair financial statements in accordance with the applicable financial reporting framework. The financial statements were approved by Aneurin Bevan University Health Board on 28 January 2023.
We confirm that we have taken all the steps that we ought to have taken in order to make ourselves aware of any relevant audit information and to establish that it has been communicated to you. We confirm that, as far as we are aware, there is no relevant audit information of which you are unaware.
Signed by: Signed by: Nicola Prygodzicz Ann Lloyd Chief Executive and Accountable Officer Board Chair Date: 25 January 2023 Date: 25 January 2023
Page 8 of 22 - Audit of Accounts Report – Aneurin Bevan University Local Health Board Charitable Fund and Other Related Charities
## Appendix 2
## Proposed Audit Report
**The independent auditor’s report of the Auditor General for Wales to the trustee of Aneurin Bevan University Local Health Board Charitable Fund and Other Related Charities**
## **Opinion on financial statements**
I have audited the financial statements of Aneurin Bevan University Local Health Board Charitable Fund and Other Related Charities for the year ended 31 March 2022 under the Charities Act 2011. These comprise the Statement of Financial Activities, Balance Sheet, Statement of Cash Flows and related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In my opinion the financial statements:
- give a true and fair view of the state of affairs of the charity as at 31 March 2022 and of its incoming resources and application of resources for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the Charities Act 2011.
## **Basis of opinion**
I conducted my audit in accordance with applicable law and International Standards on Auditing in the UK (ISAs (UK)) and Practice Note 10 ‘Audit of Financial Statements of Public Sector Entities in the United Kingdom’. My responsibilities under those standards are further described in the auditor’s responsibilities for the audit of the financial statements section of my report. I am independent of the charity in accordance with the ethical requirements that are relevant to my audit of the financial statements in the UK including the Financial Reporting Council’s Ethical Standard, and I have fulfilled my other ethical responsibilities in accordance with these requirements. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion.
## **Conclusions relating to going concern**
In auditing the financial statements, I have concluded that the use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work I have performed, I have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt
Page 9 of 22 - Audit of Accounts Report – Aneurin Bevan University Local Health Board Charitable Fund and Other Related Charities
on the body’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from when the financial statements are authorised for issue.
My responsibilities and the responsibilities of the trustee with respect to going concern are described in the relevant sections of this report.
## **Other Information**
The other information comprises the information included in the annual report other than the financial statements and my auditor’s report thereon. The trustee is responsible for the other information contained within the annual report. My opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in my report, I do not express any form of assurance conclusion thereon. My responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If I identify such material inconsistencies or apparent material misstatements, I am required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work I have performed, I conclude that there is a material misstatement of this other information, I am required to report that fact.
I have nothing to report in this regard.
## **Report on other requirements**
## **Matters on which I report by exception**
I have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require me to report to you if, in my opinion:
- the information given in the financial statements is inconsistent in any material respect with the trustee’s report;
- sufficient accounting records have not been kept, or returns adequate for my audit have not been received from branches not visited by my team;
- the financial statements are not in agreement with the accounting records and returns; or
- I have not received all of the information and explanations I require for my audit.
## **Responsibilities**
## **Responsibilities of the trustee for the financial statements**
As explained more fully in the statement of trustee’s responsibilities, the trustee is responsible for preparing the financial statements in accordance with the Charities Act
Page 10 of 22 - Audit of Accounts Report – Aneurin Bevan University Local Health Board Charitable Fund and Other Related Charities
2011, for being satisfied that they give a true and fair view, and for such internal control as the trustee determines 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 trustee is 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 deemed inappropriate.
## **Auditor’s responsibilities for the audit of the financial statements**
I have been appointed as auditor under section 150 of the Charities Act 2011 and report in accordance with regulations made under section 154 of that Act.
My objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes my opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. I design procedures in line with my responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud.
My procedures included the following:
- Enquiring of management, including obtaining and reviewing supporting documentation relating to Aneurin Bevan University Local Health Board Charitable Fund and Other Related Charities ’s policies and procedures concerned with:
- identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance;
- detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; and
- the internal controls established to mitigate risks related to fraud or noncompliance with laws and regulations.
- Considering as an audit team how and where fraud might occur in the financial statements and any potential indicators of fraud. As part of this discussion, I identified potential for fraud in the following areas: revenue recognition, posting of unusual journals and (add as appropriate to the audit);
- Obtaining an understanding of Aneurin Bevan University Local Health Board Charitable Fund and Other Related Charities’ framework of authority as well as other legal and regulatory frameworks that the Aneurin Bevan University Local Health Board Charitable Fund and Other Related Charities operates in, focusing on those laws and regulations that had a direct effect on the financial statements or that had a fundamental effect on the operations of Aneurin Bevan University Local Health Board Charitable Fund and Other Related Charities .
Page 11 of 22 - Audit of Accounts Report – Aneurin Bevan University Local Health Board Charitable Fund and Other Related Charities
In addition to the above, my procedures to respond to identified risks included the following:
- reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with relevant laws and regulations discussed above;
- reading minutes of meetings of those charged with governance and the trustee; and
- in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.
I also communicated relevant identified laws and regulations and potential fraud risks to all audit team and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.
The extent to which my procedures are capable of detecting irregularities, including fraud, is affected by the inherent difficulty in detecting irregularities, the effectiveness of the Aneurin Bevan University Local Health Board Charitable Fund and Other Related Charities’ controls, and the nature, timing and extent of the audit procedures performed.
A further description of the auditor’s responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website www.frc.org.uk/auditorsresponsibilities. This description forms part of my auditor’s report.
Adrian Crompton Auditor General for Wales 27 January 2023
24 Cathedral Road Cardiff CF11 9LJ
Page 12 of 22 - Audit of Accounts Report – Aneurin Bevan University Local Health Board Charitable Fund and Other Related Charities
## Appendix 3
## Summary of Corrections Made
During our audit, we identified the following misstatements that have been corrected by management, but which we consider should be drawn to your attention due to their relevance to your responsibilities over the financial reporting process.
**Exhibit 3: summary of corrections made**
||||
|---|---|---|
|**Value of correction**|**Nature of correction**|**Reason for correction**|
||||
||||
|£97,000|Amending the market
value of an investment
property from £153,000 to
£250,000 in line with the
District Valuers’ valuation
on 1 April 2022. This
amendment impacted a
number of disclosures,
including the Fixed Asset
Investments note, the
Reconciliation of net
income/expenditure to net
cash flow from operating
activities note, and the
Analysis of Funds note.|To ensure an
investment property is
accurately valued at its
current market value.|
||||
||||
|N/A|Inclusion of an analysis of
income deferred and
released in year|To ensure compliance
with the requirements of
the Charities SORP.|
||||
||||
|Various|Narrative and disclosures
amendments, including:
•
Correcting the number
of restricted funds
referred to in Note 22
(continued) to agree
with Note 22a.
•
Various Annual Report
amendments.|To agree back to
supporting evidence and
ensure consistency
throughout the Annual
Report and Financial
Statements.|
||||
Page 13 of 22 - Audit of Accounts Report – Aneurin Bevan University Local Health Board Charitable Fund and Other Related Charities
## Appendix 4
## Follow up of previous year’s audit recommendations
We have followed up progress made against our prior year’s audit recommendations. Where these are ongoing, we will continue to follow up progress and include any outstanding issues in next year’s audit report:
**Exhibit 4: matter arising 1 (2020-21)**
|**Matter arising 1(2020-21) – Financial Controls Procedures need to be updated**|**Matter arising 1(2020-21) – Financial Controls Procedures need to be updated**|
|---|---|
|**Findings**|As identified in our audit, the Financial Control Procedures
(FCPs) state that 'The managed investment portfolio should
equate to no more than 75% of the total funds, with the
remaining sum being more readily available.' The managed
investment portfolio as per the financial statements is
£5,004k, which equates to 92% of the £5,443k total funds. As
per our discussions with the Charitable Funds team, this is
due to the FCPs not being updated to reflect the changing
profile of the investment portfolio.
In addition, the Charitable Fund should consider having
clearerprocedures regardingthe classification of income.|
|**Priority**|Medium|
|**Recommendation**|The FCPs should be reviewed regularly and updated as
necessary.|
|**Benefits of implementing**
**the recommendation**|Regular review of the FCPs will ensure that they remain
relevant to the Charitable Fund and provide officers with
appropriateprocedures to follow.|
|**Accepted in full by**
**management**|Yes|
|**Management response**|The Charitable Funds financial control procedure is reviewed
on a 3-year rolling basis and is due for review in July 2022.
Going forward, additional reviews will be carried out on an
annual basis to ensure that the procedure remains relevant
and that no significant changes have occurred since the last
review.
For clarity, the income section (section 9 of the current
financial control procedure) will be enhanced to include a
more detailed section on the types of income received by the
Charity and how the classification is determined, e.g., grant,
donation, legacy etc. and the documentation required to be
obtained/retained to verify this classification.|
|**Implementation date**|July2022|
|**Progress update**
**December 2022**|**Completed**|
Page 14 of 22 - Audit of Accounts Report – Aneurin Bevan University Local Health Board Charitable Fund and Other Related Charities
## **Exhibit 5: matter arising 2 (2019-20)**
|**Matter arising 2 (2019-20) –**
for the Charity’s transactions|review and document the procedures undertaken to account
andprepare the financial statements|
|---|---|
|**Findings**|Officers undertake a variety of detailed procedures over the
course of the year to account for the Charity’s transactions
and prepare the financial statements. During the audit we
identified that these are not documented and are not applied
on a consistent basis.|
|**Priority**|High|
|**Recommendation**|The procedures adopted in accounting for the Charity’s
transactions should be reviewed and documented to ensure
that they are appropriate and applied on a consistent basis.
Examples of such procedures are:
•
review the classification of grant income as it is all
currently accounted for as Unrestricted, but has Terms
and Conditions attached to its use.
•
review and classification of legacy income, as these are
treated as Restricted, even where the monies are
available for wide use, e.g., at a particular site. This will
also include the three Restricted Funds reported on last
year for which there is no documentation to support the
classification as Restricted.
•
the method of allocating Support costs as they are
allocated on different bases depending on the nature of
the Fund, and the Note. In Note 12 they are allocated on
the basis of the year-end Fund balance and in Note 20
on the average monthlyFund balance.|
|**Benefits of implementing**
**the recommendation**|Reviewing and documenting the procedures adopted in
accounting for the charitable funds will improve efficiency and
ensure consistency.|
|**Accepted in full by**
**management**|Yes|
|**Management response**|We will review and document our procedures to ensure
consistency. We will also review the treatment of grant
income and legacy income with regard to restricted or
unrestricted classification. We will produce a series of
Standing Operation Procedures to ensure that the accounts
areproduced on a consistent basis.|
|**Implementation date**|31 March 2021|
Page 15 of 22 - Audit of Accounts Report – Aneurin Bevan University Local Health Board Charitable Fund and Other Related Charities
|**Progress update**
**December 2021**|**Ongoing**
As part of our audit of the financial statements 2020-21, we
noted that consideration had been given to the treatment
whilst there was evidence to suggesttreatment of grant
income and legacy income with regard to restricted or
unrestricted classification. However, our testing of income did
identify a misclassification between grants and donations, a
misclassification between legacies and donations, and a
number of misclassifications of income withinNote 5 –
Income from Charitable Activities.|
|---|---|
|**Management response**|Section 9 of the Charitable Funds Financial Control
Procedure will be updated to include a detailed section on the
types of income received by the Charity and also the nature
of the income, e.g., restricted, unrestricted. This will include
details of how the income should be treated and the
documentation required to be obtained on receipt of the
income to verify the treatment within the Charitable Funds in
the accounts.|
|**Implementation date**|July2022|
|**Progress update**
**December 2022**|**Completed**|
Page 16 of 22 - Audit of Accounts Report – Aneurin Bevan University Local Health Board Charitable Fund and Other Related Charities
## **Exhibit 6: matter arising 3 (2019-20)**
|**Matter arising 3 (2019-20) – fundholders have not always provided finance officers**
**with complete and appropriate documentation on a timely basis**|**Matter arising 3 (2019-20) – fundholders have not always provided finance officers**
**with complete and appropriate documentation on a timely basis**|
|---|---|
|**Findings**|During the audit we identified that complete supporting
documentation was not provided for all transactions, and
requests to raise invoices were not made on a timelybasis.|
|**Priority**|High|
|**Recommendation**|Fundholders should be reminded of the procedures and
requirements for managing a Fund, including timely and
completeprovision of documentation to finance officers.|
|**Benefits of implementing**
**the recommendation**|More efficient use of finance officers’ time if all relevant
documentation is provided promptly, and the opportunity of
reimbursement from the donor is not lost.|
|**Accepted in full by**
**management**|Yes|
|**Management response**|We do try to ascertain all information in relation to donations
at the time of receipt, however, it may not always be possible
to locate backing documents. There will always be instances
where donations are paid directly into the Charitable Funds
bank account. Where this occurs, we try and locate any
backing documents associated with this receipt from the
fundholder. We will ensure that the backing documents are
kept on file or stored electronically going forward.
In relation to invoices raised, the income recovery form
should be completed within three months of the
service/event. The procedure will be reiterated to
fundholders,and compliance monitored.|
|**Implementation date**|31 March 2021|
|**Progress update**
**December 2021**|**Ongoing**
As part of our audit of the financial statements 2020-21, we
noted instances where third party documentation to support
donations was not available for audit. We acknowledge that
obtaining third party documentation can be difficult in some
cases due to the sensitive nature of the donation, however
we noted instances where the chasing of third-party
documentation can be strengthened.|
|**Management response**|As reported previously, on receipt of the donation the team
do try and ascertain any backing documentation in relation to
the donation. We will evaluate the areas identified by Audit
Wales to establish how we can improve on the chasing of 3rd
Partydocumentation.|
|**Implementation date**|31 March 2022|
|**Progress update**
**December 2022**|**Completed**
Our audit did not identify any issues in this area.|
Page 17 of 22 - Audit of Accounts Report – Aneurin Bevan University Local Health Board Charitable Fund and Other Related Charities
## **Exhibit 7: matter arising 4 (2019-20)**
|**Matter arising 4 (2019-20) – the Charity has agreed to review and streamline the**
**number of individual Funds there are, as set out in the ‘Use of Funds’ paper**
**presented to the Charitable Funds Committee on 9 May 2019**|**Matter arising 4 (2019-20) – the Charity has agreed to review and streamline the**
**number of individual Funds there are, as set out in the ‘Use of Funds’ paper**
**presented to the Charitable Funds Committee on 9 May 2019**|
|---|---|
|**Findings**|This paper identified that as at 1 April 2019 there were 447
Funds, 64 were Restricted and 383 were Unrestricted; and
that reducing this number would reduce the level of
communication and administration required and enable the
monies to be spent more effectively. As at 31 March 2020 the
number of Funds had reduced to 432, of which 56 were
Restricted and 376 Unrestricted.|
|**Priority**|High|
|**Recommendation**|The Charity needs to actively continue to review and
streamline the number of Funds, especially now the Grange
Hospital, which if not managed appropriately, has the
potential to further increase the number of individual funds.|
|**Benefits of implementing**
**the recommendation**|Streamlining the Funds will enable the Charity to achieve the
identified reductions in communication and administration. As
noted in the paper, if Funds with similar interests and
objectives are merged, there is scope for the Funds to be
used more effectively to deliver goods or services that
individual Funds would not be able to achieve on their own.|
|**Accepted in full by**
**management**|Yes|
|**Management response**|Work has already started on streamlining the number of
funds in line with the opening of the Grange University
Hospital. We are currently reviewing all funds held with a
view to providing clarification on whether the fund can be
combined bythe end of March 2021.|
|**Implementation date**|31 March 2021|
|**Progress update**
**December 2021**|**Ongoing**
As part of our audit of the financial statements 2020-21, we
noted that there has been no reduction in the number of
individual funds, with there being 67 restricted funds and 372
unrestricted (total of 439) in 2020-21compared to the total of
432 in 2019-20.
We understand that work in this area will be ongoing during
2021-22.|
|**Management response**|This is an ongoing process with the number of funds
continually under review in relation to streamlining the funds
held by the HB. In the period January 2021 to September
2021, we have closed 38 funds, 18 of which had been
merged with other funds with an additional 20 closed as the
funds had been fully utilised. We have also opened a number
of new funds due to the nature of the donation.
We will continue to work with fund holders to merge funds of
a similar nature to maximise the use of the donated income
held in the funds.|
|**Implementation date**|Ongoing – initial review to be finalised by July 2022|
Page 18 of 22 - Audit of Accounts Report – Aneurin Bevan University Local Health Board Charitable Fund and Other Related Charities
|**Matter arising 4 (2019-20) – the Charity has agreed to review and streamline the**
**number of individual Funds there are, as set out in the ‘Use of Funds’ paper**
**presented to the Charitable Funds Committee on 9 May 2019**|**Matter arising 4 (2019-20) – the Charity has agreed to review and streamline the**
**number of individual Funds there are, as set out in the ‘Use of Funds’ paper**
**presented to the Charitable Funds Committee on 9 May 2019**|
|---|---|
|**Progress update**
**December 2022**|**Ongoing**
As part of our audit of the financial statements 2021-22, we
noted that there has been limited reduction in the number of
individual funds, with there being 65 restricted funds and 365
unrestricted (total of 430) in 2021-22 compared to the total of
439 in 2020-21.
We understand that work in this area will be ongoing during
2022-23.|
|**Management response**|This continues to be an on-going process. In 2021/22 the
team secured the merging of 8 funds; 10 new funds were
opened as a result of the type of donation received with a
further 11 funds being closed during the year where the funds
had been utilised. This reduced the number of funds held
from 439 in 2020/21 to 430 in 2021/22
The charitable funds team are carrying out visits and
meetings with all fund holders where they are having
discussions about merging funds, making sure that fund
holders are up to date with the current Charitable Funds
procedure and also encouraging them to utilise their funds on
a cross service basis. A process has been put in place during
2022/23 where all employees can view the types of charitable
funds held and who is the lead manager on the fund so that
they can contact them to request funding if the funding
required is within the scope of the scheme.|
|**Revised implementation**
**date**|Complete – the details on merged funds, new funds and
closed funds are routinely reported to the Charitable Fuds
committee at each meeting held as part of the finance report.|
Page 19 of 22 - Audit of Accounts Report – Aneurin Bevan University Local Health Board Charitable Fund and Other Related Charities
## **Exhibit 8: matter arising 5 (2019-20)**
|**Matter arising 5 (2019-20) – the Reserves Policy was last reviewed in May 2019 and**
**does not explain how itprovides sufficient funds for ongoing commitments**|**Matter arising 5 (2019-20) – the Reserves Policy was last reviewed in May 2019 and**
**does not explain how itprovides sufficient funds for ongoing commitments**|
|---|---|
|**Findings**|The Reserves Policy should be reviewed annually, as set out
in the Financial Control Procedure, and should specify how
the Charity identifies what is required to meet its ongoing
commitments. The Policy and disclosures in the Annual
Report do not clearlyexplain this.|
|**Priority**|Medium|
|**Recommendation**|The next annual review of the Reserves Policy should include
specifying how the Charity identifies the level of reserves
required to meet its ongoing commitments. This will assist the
Charity in reviewing its reserve levels and documenting in the
Annual Report both the policy and the review, as per the
requirements of the SoRP, paras 1.22 and 1.48.|
|**Benefits of implementing**
**the recommendation**|The annual review of the Reserves Policy will improve
governance and ensure that the Charity understands,
reviews, and discloses it Reserves Policy and the funding
required to meet ongoing commitments in compliance with
the SoRP.|
|**Accepted in full by**
**management**|Yes|
|**Management response**|The Reserves Policy will be reviewed to clearly identify the
level of reserves required to be held to meet the ongoing
commitments of the Charity. The financial control procedure
will be updated to reflect the revised reserves policy at the
next review stage which is 19 July2022.|
|**Implementation date**|30 June 2021|
|**Progress update**
**December 2021**|**Ongoing**
As part of our audit of the financial statements 2020-21, we
noted that the updated Reserves Policy has been drafted but
not yet finalised.
We understand that work in this area will be ongoing during
2021-22.|
|**Management response**|The revised reserves policy has been drafted and a report will
be presented to the January Charitable Funds Committee for
review and approval. If approved, the reserves policy will be
implemented for the remainder of 2021-22.|
|**Implementation date**|11 January2022|
|**Progress update**
**December 2022**|**Completed**|
Page 20 of 22 - Audit of Accounts Report – Aneurin Bevan University Local Health Board Charitable Fund and Other Related Charities
Audit Wales
24 Cathedral Road Cardiff CF11 9LJ
Tel: 029 2032 0500 Fax: 029 2032 0600 Textphone: 029 2032 0660
E-mail: info@audit.wales
Website: www.audit.wales We welcome correspondence and telephone calls in Welsh and English. Rydym yn croesawu gohebiaeth a galwadau ffôn yn Gymraeg a Saesneg.