2020-08-31-accounts - Queen Elizabeth's Hospital

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Contents		Pages
Governors' report		1to 19
Statement ofGovernors' responsibilities		20
Independent auditors'	report	21to 23
Statement offinancial	activities	24
Balance sheet		25
Cash flow statement		26
Notes to the financial	statements	27to 49

Mr	PA Keen (Chair ofGovernors —appointed	PA Keen (Chair ofGovernors —appointed	5 December 2019)	A~ CE~ H*
Mr	DA Smart (Former Chair ofGovernors —resigned		5 December 2019)
Mrs	C Bateson			BCE
Mrs	SBlanks			AG*
Mr	JBuchanan			CDFH
Mr	AJCherry (appointed 9September 2019)			BF
Mr	ECorrigan			AD*
Mrs Mr	SCosgrove TDavis			BC BCF*
Mr	JHirst (appointed	9September 2019)		ACG
Mr	JHollingdale			ADG
Mr Mr	M Jones (appointed 15November 2019) JEMilne			ABE AB*C
Mr	KRiley			ABH
Mr	C Woodford			AC*

			Vnrestricted	Restricted	Endowment	Total	Total
		Notes	Funds	Funds	Funds	2020	2019
Income and endowments		from:
Voluntary sources
Grants and donations			6,360	162,826		169,186	805,589
Charitable activities
School fees receivable		2	9,059,673			9,059,673	9,636,932
Ancillary trading income			370			370	832
Other trading activities
Other activities —sundry		letting	32,926			32,926	29,990
Investments
Investment income		3	307,232	19,266		326,498	427,136
Bank and other interest		3	28,279			28,279	39,170
Other
Profit on sale offixed	assets						89,900
Other income			152/50			152,250
Total income and endowments			9,587,090	182,092		9,769,182	11,029,549
Expenditure on:
Raising funds
Financing costs			35,950			35,950	38,112
Investment management			107,731		44,229	151,960	108,284
Fundraising costs			(3,349)			(3,349)	25,942
Total deductible costs			140,332		44/29	184,561	172,338
Charitable activities
Education and grant making			9,122,198	171,949		9,294,147	8,831,832
Total expenditure			92,62,530	171,949	44,229	9,478,708	9,004,170
Net income before transfers
and investment gains			324,560	10,143	(44,229)	290,474	2,025379
Gains on investments				7,368	228,186	235,554	12,114
Gains on investment properties					70,000	70,000	55,000
Transfers between funds		12	(53,260)		53,260
Net movement in funds			271,300	17,511	307,217	596,028	2,092,493
Fund balances brought	forward		11,741,312	1,319,493	10,734,139	23,794,944	21,702,451
Fund balances carried	forward		12,012,612	1,337,004	11,041,356	24,390,972	23,794,944

	Company No BALANCE as at31Au	. 5164477 SHEET st2020
		Notes	2020	2019
Fixed assets
Tangible assets			9,804,910	9,808,625
Securities investments			7,977,025	7,785,699
Property investments			3,227,527	3,157,527
			21,009,462	20,751,851
Current assets
Debtors			137,998	117,771
Cash and deposits			6,771,484	6,668,688
			6,909,482	6,786,459
Current Liabilities
Creditors: amounts	falling due within one year		(2,623,446)	(2,767,318)
Net Current Assets			4,286,036	4,019,141
Total assets less current liabilities			25,295,498	24,770,992
Long term liabilities
Creditors: amounts	falling due after one year	10	(904,526)	(976,048)
Net assets			24,390,972	23,794,944
Endowed Funds		12	11,041/56	10,734,139
Restricted Funds		13	1,337,004	1,319,493
Unrestricted Funds			12,012,612	11,741312
			24,390,972	23,794,944

			CASH FLOW STATEMENT	CASH FLOW STATEMENT	CASH FLOW STATEMENT	CASH FLOW STATEMENT
		for the		ear ended 31Au		ust 2020
						Notes	2020	2019
Cash flows from operating	activities:
Net cash provided by operating activities						isa)	435,206	2,400,353
Cash flows from investing	activities:
Dividends, interest and rents &om investments							326,498	401,446
Purchase ofproperty, plant	and equipment						(574,985)	(2,758,956)
Purchase ofinvestments								(352,463)
Net cash (used in) investing	activities						(248,487)	(2,709,973)
Cash flows from financing	activities:
Cash infiows &om new borrowing
Cash repaid on borrowings							(47,973)	(45,997)
Interest paid on borrowings							(35,950)	(38,112)
Net cash provided by financing activities							(83,923)	(84,109)
Change in cash and cash equivalents		in	the reporting		period		102,796	(393,729)
Cash and cash equivalents	at 1September 2019						6,668,688	7,062,417
Cash and cash equivalents	at31August		2020			15b)	6,771,484	6,668,688

				2020	2019
The	School's fee income comprised:
	Gross fees			10,134,691	10,545,974
	Less: Total scholarships,	bursaries	and allowances	(1/27,625)	(1,053,056)
				8,907,066	9,492,918
	Add back: Bursaries etc	paid for by restricted funds		152,607	144,014
				9,059,673	9,636,932

INVESTMENT INCOME	INVESTMENT INCOME
			2020		2020	2020		2020	2019
		Unrestricted			Restricted	Endowment
			Funds		Funds	Funds		Total	Total
Property income			100,205					100+05	93,436
Interest receivable			28/79					28,279	39,170
Income &om investments			207,027		19,266			226/93	333,700
			335,511		19/66			354,777	466,306
Of the total unrestricted	investment		income		8307/32 (2019:f401,448)			arose &om	permanently
endowed assets. There are	no	restrictions placed on the income generated					from any ofthe		permanently
endowed assets.
ANALYSIS OFTOTAL EXPENDITURE
		Staff Costs		Depreciation		Other		2020	2019
Raising funds:
Financing costs						35,950		35,950	38,112
Investment management						151,960		151,960	108,284
Fundraising costs						(3,349)		(3,349)	25,942
Total costs ofraising funds						184,561		184,561	172,338
Charitable expenditure:
Teaching		5,051,859			191,502	479,971		5,723,332	5,523,555
Welfare			74,506			462,065		536,571	652,001
Premises		386,253			387,198	1,040,916		1,814,367	1,506,193
Support and governance		594,953				452,975		1,047,928	996,707
Grants, awards and prizes						171,949		171,949	153,376
		6,107,571			578,700	2,607,876		9,294,147	8,831,832
Total Expended		6,107,571			578,700	2,792,437		9,478,708	9,004,170

Grants, awards and	prizes		2020	2019
From Restricted Funds:
Bursaries and other grants and awards			152,607	144,014
Prizes and leaving awards			4,125	3,450
Other costs			15,217	5,912
			171,949	153,376
Staffcosts comprise:			2020	2019
Wages and salaries			4,782,326	4,543,443
Defined contribution	pension scheme employer's	contributions	53,943	46,908
Defined benefit pension scheme operating costs			800,711	548,324
Social Security			470,591	449,666
			6,107,571	5,588,341

						2020	2019
Aggregate	employee	benefits	ofkey	management	personnel	693,001	516,620

offull time equivalent staff employ	ed during the year was 109(	2019;112):
		2020	2019
Teaching		75	76
Welfare		2	1
Premises		6	6
Support		26	29
		2020	2019
Number ofhigher paid employees	in bands of:
8140,001tof150,000
690,001to f,100,000
870,001to f80,000
K60,001tof70,000

the year. During the Governors received E2,198for (2019:62,765).	reimbursement oftraining and tr	avel expenses
Administration costs include:	2020	2019
Depreciation - owned assets	578,700	386,273
Auditors' remuneration	9,360	9,146
Auditors' non-audit remuneration	1,130	1,158

. TANGIBLE FIXE	DASSETS
				Fixtures,
	Freehold	Freehold	Freehold	fittings	Motor	Total
	Land	Bui)ding	Improvement	Equipment	Vehicles
Cost	180,020	7,336,003	3,955,753	1,555,648	99,633	13,127,057
As at 1 September 2019
Additions			419,468	155,517		574,985
Transfers
Disposals
As at 31August 2020	180,020	7,336,003	4,375,221	1,711,165	99,633	13,702,042
Depreciation
As at 1 September 2019		1,565,244	735,173	918,382	99,633	3,318,432
Charge for year		146,720	240,478	191,502		578,700
Disposals
As at 31August 2020		1,711,964	975,651	1,109,884	99,633	3,897,132
Net Book Value
At 31 August 2020	180,020	5,624,039	3,399,570	601,281		9,804,910
At 31 August 2019	180,020	5,770,759	3,220,580	637,266		9,808,625

FIXEDA	SSETINVKSTMKNTS
			Property	Securities
			investments	investments	Total
Market value at 1 September 2019			3,157,527	7,785,699	10,943,226
Costs ofmaintaining the endowed		funds		(46,001)	(46,001)
Change in	market value		70,000	237,327	307,327
Market value at 31August 2020			3227,527	7,977,025	11204,552
Historical	cost		1,098,127	6,759,705	7,547,832
Securities	investments comprise:				Value
Quilter Cheviot Portfolio					7,970,172
Investments	held with Smith &Williamson				6,851
Investment	in subsidiary, QEH International		Schools Lunited		2
					7,977,025

DEBTORS
		2020	2019
Fees receivable		1,229	95
Other debtors		6,001	4,455
Prepayments	and accrued income	130,768	113+21
		137,998	117,771

9.	CREDITORS: Amounts falling due within one year
		2020	2019
	Fees in advance	1,492,257	1,711,553
	Sundry creditors and accruals	960,467	893,593
	Taxation &Social Security	119,983	114,199
	Bank loan	50,739	47,973
		2,623,446	2,767,318
10.	CREDITORS: Amounts falling due after more than one year
		2020	2019
	Sundry creditors and accruals (1-2years)	20,708	20,708
	Sundry creditors and accruals (2-5 years)	58,973	72,325
	Sundry creditors and accruals (over 5 years)	9,318	15,476
	Deferred income (1-2years)	1,272	1,272
	Deferred income (2-5 years)	3,817	3,817
	Deferred income (over 5 years)	137,427	138,700
	Bank loan (1-2years)	53/24	50,739
	Bank loan (2-5 years)	175,556	167,402
	Bank loan (over 5 years)	444,231	505,609
		904,526	976,048

Deferred income at 1	September	September	2019					1,931,063
Resources deferred during		the year						1,530,072
Amounts released from previous			years					(1,787273)
Deferred income at 31August 2020								1,673,862
Deferred income includes		fees received		in advance,		monies received	for trips taking	place after the
year end and income	received in		advance	in	respect	ofaproperty.
FINANCIAL INSTRUMENTS
							2020	2019
							f.
Financial assets measured		at fair value		through		income and
expenditure
Securities investments							7,977,025	7,785,699
Financial assets measured		at amortised		cost
Fees receivable							1,229	95
Other debtors							6,001	4,455
Cash and deposits							6,771,484	6,668,688
							6,778,714	6,673,238
Financial liabilities	measured		at amortised		cost
Sundry creditors and	accruals						867,862	468,168
Bank loan							723,750	771,723
							1,591,612	1/39,891

ENDOWMENTS
Balance at 1 September 2019		10,734,139
Change in market value		298,186
Transfer &om unrestricted fund		53,260
Costs ofmaintaining the endowed	funds	(44,229)
Balance at 31August 2020		11,041,356

August 2026 to be	August 2026 to be	invested as part ofthe charity's permanent end	owment fund.
Movements in the		year were as follows:
Balance	at 1 September 2019		372,827
Amount	repaid in	the year	(53,260)
Balance	remaining	at 31August 2020	319,567

RESTRICT
		As at			Gains,	As at
	1September		Incoming	Resources	losses and	31August
		2019	resources	expended	transfers	2020
Josella Trust		31,140			(31,140)
John James Prize Fund		12,028	3322			15,250
John James Gift		746	30,000	(30,746)
Bursary Fund		734,212	131,061	(97,190)	149,732	917,815
QEH Old Boys' Benevolent Fund 317,810 Scholarship, Bursary 4Prize Fund			8,715 9,094	(26,667) (17,346)	7,368 104,965	307426 96,713
Other funds		223,557			(223,557)
		1,319,493	182,092	(171,949)	7,368	1,337,004
		As at			Gains,	As at
	1September		Incoming	Resources	losses and	31August
		2018	resources	expended	, transfers	2019
						JE
Josella Trust		29,314	1,826			31,140
John James Prize Fund		10,714	3,781	(2,467)		12,028
John James Gift		2,294	30,000	(31,548)		746
Bursary Fund QEH Old Boys 'Benevolent	Fund	407,026	402,346 346,622	(75,160) (28,812)		734,212 317,810
Other funds		201,065	37,881	(15,389)		223,557
		650,413	822,456	(153,376)		1,319,493

ANALYS	IS OF NKT ASSETS	BETWEEN FUND	S
		Unrestricted	Restricted	Endowment
		Funds	Funds	Funds	Total
Fund balances at 31August 2020		are
represented by:
Tangible	fixed assets	9,804,910			9,804,910
Securities	investments	2	307,227	7,669,796	7,977,025
Property	investments			3,227,527	3,227,527
Current assets		5,735,672	1,029,777	144,033	6,909,482
Liabilities		(3,527,972)			(3,527,972)
Total net	assets	12,012,612	1,337,004	11,041,356	24,390,972
		Linked Charities
		QKH	QEH SBP	QKH Trust	Total
Fund balances at 31August 2020
Analysed	between the linked charities
Tangible	fixed assets	9,804,910			9,804,910
Securities	investments	307429	371,950	7$,97,846	7,977,025
Property	investments			3327,527	3427,527
Current assets		6,668,736	96,713	144,033	6,909,482
Liabilities		(3,527,972)			(3,527,972)
Total net	assets	13252,903	468,663	10,669,406	24,390,972

ANALYSIS OF NKT ASSETSB	ETWEEN FUINDS (	continued)
	Unrestricted	Restricted	Endowment
	Funds	Funds	Funds	Total
Fund balances at31August 2019are
represented by:
Tangible fixed assets	9,808,625			9,808,625
Securities investments	2	299,858	7,485,839	7,785,699
Property investments			3,157,527	3,157,527
Current assets	5,676,051	1,019,635	90,773	6,786,459
Liabilities	(3,743,366)			(3,743,366)
Total net assets	11,741,312	1,319,493	10,734,139	23,794,944
	Linked	Charities
	QEH f	QEHSBP f	QEH Trust	Total
Fund balances at 31August 2019
Analysed between the linked charities
Tangible fixed assets	9,808,625			9,808,625
Securities investments	299,860	363,029	7,122,810	7,785,699
Property investments			3,157,527	3,157,527
Current assets	5,676,051	1,019,635	90,773	6,786,459
Liabilities	(3,743,366)			(3,743,366)
Total net assets	12,041,170	1,382,664	10,371,110	23,794,944

a)	Reconciliation ofnet incoming r	esource	s to n	et cash flow from o	perating activiti	es
					2020	2019
	Net income/expenditure for the reporting		period	(as per the
	statement offinancial activities)				596,028	2,092,493
	Depreciation charges				578,700	386473
	Disposal ofFixed Assets					12,681
	Dividends, interest and rents &om	investments			(326,498)	(401,446)
	(increase)/decrease in debtors				(20,228)	56,811
	Increase/(decrease) in creditors				(167,421)	260,723
	Endowment costs				44/29	21,820
	Interest on loans				35,950	38,112
	Gains on investments				(305,554)	(67,114)
	Net cash inflow from operating	activities			435,206	2,400,353
b)	Analysis ofnet funds
				At 1September	Cash	At 31August
				2019	flow	2020
	Cash at bank			6,668,688	102,796	6,771,484
					2020	2019
c)	Analysis ofcash and cash equivalents
	Cash in hand				2,178,988	2,086,751
	Notice deposits (less than 3months)				4,592,496	4,581,937
	Total cash and cash equivalents				6,771,484	6,668,688

cancellabl	e operating leases was:
		2020
Amounts	payable:
Within 1	year	6,339	6,339
Between	1 and 5 years	17,961	24,300
Total		24,300	30,639

			Unrestricted	Restricted	Endowment	Total
		Notes	Funds	Funds	Funds	2019f
Income and endowmentsPom:
Voluntary sources
Grants and donations			8,821	796,768		805,589
Charitable activÃes
Schoolfees receivable			9,636,932			9,636,932
Ancillary trading income			832			832
Other trading activities
Other activities —sundry	letting		29,990			29,990
Investments
Investment income			401,448	25,688		427,136
Bank and otherinterest			39,170			39,170
Other
ProjitlPoss) on sale offixed		assets			89,900	89,900
Total income and endowments			10,117,193	822,456	89,900	11,029,549
Expenditure on:
Raising funds
Financing costs			38,112			38,112
Investment management			86,464		21,820	108,284
Fundraising costs			25,942			25,942
Total deductible costs			150,518		21,820	172,338
Charitable activities
Education and grant making			8,678,456	153,376		8,831,832
Total expenditure			8,828,974	153,376	21,820	9,004,170
Net income before transfers
and investment gains			1,288,219	669,080	68,080	2,025,379
Gains on investments					12,114	12,114
Gains on investment properties					55,000	55,000
Transfers between funds			(53,260)		53,260
Net movement lnfunds			1,234,959	669,080	188,454	2,092,493
Fund balances brought forward			10,506,353	650,413	10,545,685	21,702,451
Fund balances carried forward			11,741,312	1,319,493	10,734,139	23,794,944