2021-06-30-accounts

Company Number 5787972 HEALTHCARE FINANCIAL MANAGEMENT ASSOCIATION Trustees, Report and Financial Statements For the year ending 30 June 2021

CONTENTS HFMA Report 2020 - 2021 SENIOR EXECUTIVES AND BOARD OF TRUSTEES PRESIDENT'S AND CHIEF EXECUTIVE'S REPORT TRUSTEES REPORT 4-10 STATEMENTS OF FINANCIAL ACTIVITIES 11 STATEMENTS OF FINANCIAL POSITION 12 CONSOLIDATED STATEMENT OF CASH FLOWS 13 ACCOUNTS NOTES 14-27 INDEPENDENT AUDITOR'S REPORT 28-30 HFMA ANNUAL REPORT 2020- 2021 Company Number.. 5787972

SENIOR EXECUTIVES AND BOARD OFTRUSTEES Board of Trustees and Directors HFMA Senior Executive Team PRESIDENT CHIEF EXECUTIVE I SECRETARY Mark Knight 2020121" Caroline Clarke 2019120.. Caroline Clarke 2016119.. Bill Gregory DEPUTY CHIEF EXECUTIVE & DIRECTOR OF FINANCE VICE PRESIDENTS lan Tumer 2020121.. Owen Harkin 2020￿1." Lee Bond 2019120". Owen Harkin 2019120.. Lee Bond 2018119.. Caroline Clarke 2018119.. Owen Harkin DIRECTOR OF EDUCATION Alison Myles lunb"131 December 20201 DIRECTOR OF POLICY AND RESEARCH Emma Knowles IMMEDIATE PAST PRESIDENT 2018119.. Bill Gregory 2017118.. Alex Gild 2016117.. Mark Orchard CHAIR OF AUDIT AND FINANCE COMMITTEE Jame5 Rimmer luntil 31 December 20201 Simon Crowther (from 31 December 20201 NON-OFFICER TRUSTEES AND DIRECTORS Sanjay Agrawal David Chandler (appointed 10 December 20201 Simon Crowther Sandra Easton Maureen Edwards (appointed 10 De￿rnber 20201 Alex Gild Kavita Gnanaolivu Bill Gregory Kim Li lappoillted 10 Decernber 20201 Elizabeth O'mahony Lee Outhwaitè Carol Potter Iresigned 10 Decernber20211 Claire Wilson Registered Charity Name and Registered Office Advisors BANKER Healthcare Finanaal Management Association IHFMAI is a registered ch3rity in England and Wales. no 1114463 and Scolland. no SC041994 HFMA is also 8 limited company Tegistered in England and Wales. no 5787972. National Westminster Bank plc Chester Branch. 33 Eastgate Street, Chestèr, CH1 1XA SOLICITOR Bevan Brittan LLP KTngs Orchard. 1 Queen Street, Bristol, BS2 OPto Reoislered office.. 110 Rochester Row, Victoria, Lond(Jn. SW1P 1JP Tel.. [phone] Fax.. [phone] Email". info@hfm&.org uk Web.. wvM.hfrna.org.uk AUDITOR RSM UK Audit LLP Chartered Accountants Hathell House, 55*1 Victoria Street, Bristol, BS16AD HFMA ANNUAL REPORT 2020- 2021 Company Number: 5787972

REPORTOFTHE PRESIDENT AND CHIEF EXECUTIVE FOR THE YEAR ENDED 3oJUNE 2021 President's and Chief Executive's Report During the year to 30 June 2021. we also continued to host, work alongside and support One NHS Finan￿ with the delbvery of their programme Of work in England which has expanded considerably to encompass Future-Focused Finance. the Nabonal Finan￿ Academy and the Finan Innovation Fotum. We are proud to be a part of this exciting and developing set of programmes. The business plan for thè year to 30 June 2021 was set as 8 reset year for HFMA, having pivot&d the organisation in the last quarter ol the year to 30 June 2020 to cope with the impact of Covid-19. The ￿u$ of that business plan was lo maintain our volume of activities to support our members as much as we could and at the same time to ensure the organisation was financially susl8in8ble by making a small surplus. Atthe beginning of the year the trustees recognised that the future was very uncertain 3nd therefore rather than set the new three-year strategy from 1 July 2020. Fl was decided lo have Nvo years of reset to 30 June 2022 with a recognitio that there is a need to be nimble and flexible a5 we le3m what the 'new nornal, looks like in the Covid-19 worfd we now live in. We will use the second half of the next financial year to set a new three-year strategy for the three years from 1 July 2022 to 30 June 2025. We are delighted to be able to say that both objectiveswere achieved. The volurne of actÈvity and support to mernbers was actually greater than ever in the last ye8r. Financially the statutory accounts show a surplus of £348k for the year to 30 June 2021, compkred to a deficit of £779k in the previous year to 30 June 2020. This is a most pleasing result and goes someway to rebuilding the reserves reduced in the previous year to a level of £3,954k at 30 June 2021. We would like to take this opportunity to thank our fiiends on the corporate partner prooramme who provide us with valuable resources Wrthout which we would not be able to run our ￿￿traI infrastructure. They. along with all our commercial supporte￿. continue to be very supportive in these challenging timès for which WÈ a￿ very grateful. The demand for outputs from our policy and technical team continued to be very high as did the requests for webinars an(S other on-line acbvilies. Our free bitesize E leaming modules. which arè on the NHS ESR system. were accessed over 25.000 h.mes The number of people attending our virtual events was considerably higher than Used to attend face lo face events. The reach across the NHS. as result, was far greater Ihan ever before. Our theme for the period of the pandernic has been Taknng pride in our future. We have never been prouder to be supporting our mernbers workn'ng in the NHS through Ihis hugely challenging time. They have dernonstialed resilienee, professionalism and sheer guts in keeping the NHS running over Ihis18sI year. Ilwe did not know italready, we were reminded how resilient and supportive the NHS finan￿ ￿nctIOn is. We received numerous Messages of support and useful suggestions as lo how HFMA could assist and support the finance Community across the NHS. As a result, the association was able to tailor its work programme accordingly. In 'normal times, this support has been the kèy to HFMA'S succe55. In these extraordinary times the time and energy that HFMA'S volunteers and membership have put into the association has ensured we have survived and have been able to move forward with confidenoe. There's always more lo do bul is clear is Ihalthe future looks very different posl-pandemic to what it was pre-pandemic. At HFMA we will continue to work hard to 5UPPQrt our rnembers as the NHS moves fOn￿ard and we will work hard to help ensure that we keep the best ol what we've ￿arnt over the last year. Thank you for reading this annual review. As always, please do not hesitate to contact us with any cornments or thoughts and our best wishe to you all. By the membership providing this 5UPPOrt the assoaation was also able to provide a significant increase in public benefit as evidenced by, for example, the levels of social rnedia traffic and downloads of material over the last year. When we develop our business plan each year. we set some key performance indicators which we rneasure ourselves against each year. These show that as at 30 June 2021 we had reached a record 17,396 members and supported them and others through.. Ca line Clarke President Mark Knight Chief Executive 336.900 hours of CPD provided during year 109 regional and national events induding webinars 36 briefings and publications. We ask attendees and users of all our activities to give feedback and over the last year we achieved an amazing 96 10 good or excellent on events ancl 960/0 from everyone who undertook our bitesize e-leaming. We are very proud of this feedback. HFMA ANNUAL REPORT 2020- 2021 Company Number.. 5787972

REPORTOFTHETRUSTEES FOR THEYEAR ENDED30 JUNE 2021 Trustees, Report together and relaunch them as the new Hub ￿e￿Ork.. Virtually every NHS organi58tion is now a Hub member OBJECTS AND AIMS Influence.. There have been considerable developments in policy and technical work during the year and we have built on the many new activities that were initiated lastyearwhèn the irnp8ct of Covid-19 was first felt. THE OBJECTS AND AIMS OF HFMA HFMA is a charity which works with Ihe healthcare sector to advance effective ffnancial management. its objects and airlls are to.. Working with key stakeholders and building constructive and productive relationships remains important and a key Component of our sue¢ès$_ advance the science Df health care management and accountancy and cognate subjects as applied to all or any of the duti&5 Imposed upofi and fvnctions undertaken by health services To this end we continue to meet regulady with the policy and dècision makèrs in the NHS in Wales. Northem Ireland and Scouand. as well as England. advancè public èducation therein In England, we continued to work with key players in the healthcare sector such as the Departrnent of Health and Social Care and NHS England and NHS Improvement. We are delighted to continue to be the prime partner for FFF.. hosting. providing the administration and delivering a big part ol OneNHSFinance's IONFI programme. undertake and publish the usèful rèsults of studies and research work therein and related subjects. STRATEGIC REPORT ACHIEVEMENTS AND PERFORMANCE IN THE YEAR We also continue to work closely with the main accountanry bodies. NHS Confederation and the Kings Fund as well as number of key private sector oroanisalions in moving the finance agenda in health fofward. The activities and achievements in the year against each of our strategic objectives a5 laid out in the 2020r21 strategy are summarised below.. We continued developing our library of books, Teports and briefings. producing 36 briefings and publications in the year. Benefit.. The nurnber of indwidual mernbers of HFMA at the end of the year totalled 17.39612019120.. 16.6661. The year w8s dominated by supporting our mernbers as they dealt the impact of Covid-19. The tangible result of this was more policy and technical outyut to support the NHS finance ¢ornmunity. TrainTrng and development.. The year saw a continuing of HFMA'S Qualifications.. the HFMA Diploma IDHBFI and Higher Diploma in Healthcare and Business Finance IHDH8FI and the Diploma in AdvanTrd Practi Managernent IDAPCMI. As part of ￿15 work for much of the year our website featured a special section dealing wilh publications and paper5 SUPPOrtillg our members as they had to transfom their own organisations to rnanage the Irllp￿t of Covid-19. Numerous on-line events and outputs disseminating inlomation and hosting webinars to help the NHS finance lesdeiship communicatè to èach NHS organisation in England. During the year to 30 June 2021 we had an average of 94 students sbjdying for the DHBF, HDHBF and DAPCM qualification. The AssocTah"on continues to bè the place most NHS finance staff go to Satisfy their CPD requirernents. Toial CPD hours delivered in the year reached 336.900. This continues one ol the key ststistics that demonstrates the continuing interest our membership and the wider finance ¢ornrnunity in health has for HFMA'S training., be it events, webinars. qualifications or e-leaming. Just as importantly HFMA targets a 90°h excellenvgood score frorn user feedback. Over the year to 30 June 2021 the average over all events was 96 /¢ a statistic we are very proud of. We were vèry plèa5èrt tral our invégtments over thè yèars in IT and digital mechanisms, such as Microsoft Teams, e- leaming. webinars. social media, the website and our Members App have allowed us to continue delbiering mttmber benefits and indeed a wider public benefit to all in thè NHS over the last year. The impact of Covid-19 did howevèr ha5 tneant that we ran no frdce to face events in the year but did however run many highly successful virtual events. It should also be noted that for rnuch of the year our conference centre. 110 Rochester Row was closed. We therefore took advantage of the govemrnents Coronavirus Job Retenb"on Scheme ICJRSI particularly in the first quarter of the year. Over the year all ol our events have been run virtualty and thi5 has proved a huge success with more attendees than ever and wider audiences being reached than when we ran ts￿ to tsce events. The most popular include our National Annual Conferen￿ in December and our Pre-Accounts Planning event in February, which wa5 well-attended. HFMA also continue to manage the Skills Development and Financial Management Training scheme contracts for the South West. West Midlands and South Central contracts. Our organisation facing offerings o)ntinue to be very popular and so we were delighted to be able to bring these HFMA ANNUAL REPORT 2020- 2021 Company Number: 5787972

REPORTOFTHETRUSTEES FOR THEYEAR ENDED 3oJUNE 2021 E-lèarnlng- Bitesize- Our e-learning modules have proved very sought after by the NHS finanTr fvnction over the year last year. Part of the offering now includes some modules that have been uploaded onto the NHS ESR system allowing nearly all employees in the NHS to access them free of charge. At the b.me of writing sorne 30,000 downloads had taken place. Conferences and training events income in 2020121 lotslled £1.118k 1£1.501k in 20191201. The reduction being again due to the impact of Covid-19 resulting in no higher income face to face events taking place in the year. E-leaming 18ilesizel income totalled £725k in 2020r21, 1£827k in 2019￿0) the decrease being due to less activity over the first quarter of the year as 8 result ol Covid-19. Once again, we are very proud to report that the target of achieving over 90°A of users scoring each module excellent or good was achieved at 960A. Qualifications iDcome totslled £332k1£301k in 20191201 a slight increase year on year as a result of the income to allow develtspment of the Personal Healthcare Budgets module. HFMA'S Bitesize e-learning modules continue to be improved and updated on an annual basis, drawing on technical expertise from our content team. our tnembers and the graphical skills of instructional designet5. As a result of this. the introductr)ry suite of modulès continues lo train and inspire NHS staff. Other income includes Coronavirus Job Retention Scheme ICJRSI grant income of £99k in 2020r211£269k in 20191201. The breakdown of expenditure is shown below.. FINANCIAL REVIEW Expenditure As can bé seen from above il hes been another hugely challenging year as HFMA has faced the challenges that Covid-19 has brought to the NHS. We are therefore delighted that the pivotin9 of tre organisation and actions taken at the end ol last year have stabilised the finance5 and meant that HFMA has made a small sutplus forthe year of £42k. Vohen one adds in a small reali5ed 93in from Selling investments of £49k and an unrealised gain on our remaining investrnent5 of £257k the surplus for the year in thèse statutory accounts is £348k 1£779k deficit in 20191201. Blte51ze i*rences & , e¥ents 22% Income Thè costs of all the trading activty in thè trading subsidiary. HFMA Ltd was £2.293k in 2020121 1£3.213k in 2019120}. Thi5 iesulled in surplus of £460k1£104k in 20191201 which IS Used by the charity to sub5idise the cost of activities and services provided to the members of HFMA. Ot.- By far the greatest activity in terrns of incorne, other ihan the trading activities in the subsidiary companies noted above, is conferences and events. Expenditure totalled £1.207k in 2020121 1£1.911k in 20191201. The redu¢tioll reflects the fact that costs ol running lace to face events are considerably less than the costs ol running virtual events. ConferÉn¢& & VÈ The costs of e-leaming. Bitesize. packages have increased year-on-year at £479k 1£430k in 20191201. Wth income down the result is a reduced contribution at £247k1£397k in 20191201. The total income of the Charity lor 2020121 was £5.453k 1£6,668k in 20191201. Members subscriptions totalled £181k in 2020121 1£188k in 2019r201. The costs of member services reduced to £947k in 2020121 1£1.055k in 20191201 reflecting the focus on cost reduction over the last year. It is pleasing to Note that thé key activity stats'stics show that despite these cost savings the volume and quality ol member services has not been affected. 11 is congruent with the objects and aims of the charity and the Charity Cornmission's guidance on Public The18rgesl single Source of income was trom trading which stotsd at £2.922k in 2020121 1£3.476k in 20191201 down considerably year-on-year due to the impact of Covid-19 on sponsorship accruing from face to face events and the Conference Centre. 110 Rochester Row being closed for the bulk ol the year. HFMA ANNUAL REPORT 2020- 2021 Company Number.. 5787972

REPORT OFTHETRUSTEES FOR THE YEAR ENDED 3oJUNE 2021 Benefit. that subscriptions paid by members cover only a small percentage of the costs of providing rnernber servi(Es with the surpluses achieved in the trading operations of HFMA subsidising the balance of the costs. The plans for the year ahead for each main charitablè activity are detailed below". Benefit.. il is important that HFMA not only maintains the current quality tsf services but also develops them to support our members and the wider NHS 8t a time of ever-growing financial pressure. In temis of rnembership, our clear strategy will be to maintain our existing level of membership in the yèar ahead. We are also working dosely with the other main supporters of finance professionals in the NHS on the ONF inity'ative. The sutplu5 of £348k in 2020r21 increases the net funds of HFMA at 30 June 2021. 10 £3,945k1£3.606k.20191201 The financial statements have been prepared in accordance with relevant law and current accounting conventions and in particular the Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021- (Charities SORP IFRS 10211. Influence.. HFMA provides material that is relevant and timely for members. It is planned to keep up with demand for specific publications and training packages during the following yeai. A clèar focus will be to support the NHS and the wider cornrnunity in their understanding of the impact of Govid-19 and the overall NHS move towards more place-based structures. We airn to ensure our outputs provide the best support to our members and the organisations they work for. We will continue to work closely wth the NHS leadership teams in developing and influencing policy and we will be continuing to foster relationships with other organisalions. such as the accounting bodies, medical colleges and organisations as well as working closely with the nèw ICS'S in tre new NHS world. PUBLIC BENEFIT To meet thè objective ol providing Public Benefit, HFMA offers training courses through branch and n3tional events in the fom of conferences and seminars. webinars. training publications and materials and online through our e- leaming service. Followng the impact of Covid-19 a special portal w85 set up on the HFMA website into which materials were placed to support all those In healthcare working to manage the impacl of the pandemic on their job. This portal was free access to all. Training and development.. the full conference and seminar programm¢, lo¢ally at branches and nationally, will be followed but. particularfy in the first half of the year these will be on-line and virtually delivered. Extending our work assisting local Sknlls Developrnent and FMTS groups will also continue to be a focus for 2020121. Each branch will run a minimum of four events of which at least one will be fee free. We will also be looking to further develop our faculty programme. The HFMA Diploma and Higher Diplorna and DAPC is currently to continue to have three intakes each year in Septernberloctober, Jariuary and May. All these activities contribute to the Public Benefit provided by HFMA in assisting healthcare managers in providing a high quality and efficient 5eroice to the public. The 1 OOQ/o owned trading subsidiary HFMA Ltd operates omrnercial activities to support the work of HFMA. The results are shown in Note 16 to the Accounts. HFMA Cornmercial Servi￿5 Limited is also 100% owned but has not iraded in the year. The activities and achieveTnents ol thè charity in the year to 30 June 20218re detsiled in the Chief Execut￿e'S report with commentsry as to how the objectives set were met. These achi&vements dernonstrate how successful HFMA has been in fulfilling its objectives 8nd providing a Public Benefit. E-learning - 8iiesize'. We will further develop our e- leaming Bilesvie products and programrnes. Our usual programme ol uprlah'ng existing modules will also take plaGe lo ensure that the training we deliver is up to date and of the highest quality. We will also be looking to keep the programme of refreshing and improving the website and rnobile app in th& year ahead. FUTURE PLANS The plans noted above, and the actNities undertsken in the year show how the objects and aims of the chaiity continuè to be satisfied. These are a clear demonstration of how HFMA provides a Public Benefit by providing services and support to a rrtembership of people Wor￿]ng in finance and related areas in healthcare management. A business plan for 2021-22 has been produced which aims to consolidate the changes HFMA has made to the Charity in the last 18 months and to work in the new reality. This includes the exciting move into HFMA'S new owned office in Bristol in earfy 2022. The Trustees and Senior Management Team al HFMA are confident that the Association is in a good posib.on to move forward into the new world as we come to terms with the changes that Covid-19 has made to our world and HFMA'S pla￿ in IL Most training activities are open to non-members as well as bers. often free of charge, ensuring that all members within a health systern can benefit from HFMA'S expertise. A bursary fund also exists to support members or potential members who are unable to a￿sS the serlices provided by HFMA due to financial constraints. HFMA ANNUAL REPORT 2020- 2021 Company Number.. 5787972

REPORT OFTHETRUSTEES FOR THEYEAR ENDED 3oJUNE 2021 The Trustees consider they have complied with their duties with regard to the Charty Commission's Public Bènèfit guidan￿. To assist with c85h requirernents a CoronavinE Business Interruption Loan of £850k wa5 re￿iVed in February 2021. This will be ￿paid in February 2022. Future budgeted cash flows show HFMA will have suffiaent cash to repay these monies. RESERVES AND GOING CONCERN HFMA'S total ￿SerVeS whiGh have been builtup slowly over rnany years were severely reduced in the year to 30 June 2020 by £779k as a direct result of lost revenue due to the impaot of Covid-19. The re5vIt forthe year to 30 June 2021 of £348k has gone some way to rebuilding the Reserves of the Charity which now stand at £3,954k1209120 £3,606kl. It is also worth noting that if needed HFMA has fixed assets investments which could bè sold if furthèr cash was required. The value of these investments at 30 June 2021 was £2,233k12019120 £2,227kl. The investment approach is discu55ed and agreed annualty and confirrned at Board rneetings. It was agreed that a considerable amount ol funds should be held in easi accessible accounts (that attracted lower interest than could be achieved if the funds were tied up in fixed tem accounts) to allow the Trustees to rllove quickly if there was an opportunity to invest in assets that supported HFMA'S 5tr8tegiG objectives to support the mernbers and maintain the long-terrn ￿tUre of the Charity- All resètves are held in funds whose use is atthe discretion of the Trustees as long as they are used as 12id out in the objects and aims ol the charity. The reserves poliy below is set by the Trustees. The Association's policy is to secure its viability beyond the irnrnediate future. This requires some income to be put aside, when this can be afforded, as a reseNe against future uncertainties and opportunities.. This has proved a good strategic approach in reTrnl yèars with £2,OOOk having been invested in Funds in 2017 that have seen a substantial increase in value. l fvnd5 are unrestricted income funds. These are split into the following.. General fund. Branch ftjnd and Bursary fund. In addition in the year to 30 June 2021 HFMA w8s able lo move quickty to secure the purchase of a building in Bristol for £670k which will become HFMA'S offices in Bristol, thereby 581isfying a long term strategic objeckn.ve ol the Charity to purchase a prernises in Bristol. The General fund should be built up to at least six months, worth ol total annual costs of HFMA to cover short term tslling off in demand for the services offered. The B￿nch fund is tha sum of the resèNas of Èach of the 13 branches. TRUSTEES. RESPONSIBILITIES IN RELATION TO THE FINANCIAL STATEMENTS The Bursary fund is to support those with Eow incomes aC￿sSIng the Services of HFMA. The Trustees (who are also directors ol Healthcare Financial Management Assouation for the purptsses of company lawl are iesponsible for preparing the Ttustees, Report and the financi31 statements in accordan￿ with applicable law and United Kingdom Generally Aocepted Accounting Practice. None of the funds a￿ in deficit. The balances on these funds are shown oll the balance sheet and in note 17. As a result of the impact of Covid-19 leading to a 105s of £779k for the year to 30 June 2020 the General fund balance is below the level targeted. The surplus of £348k this ye8rthis yearto 30 June 2021 has started the rebuilding ol the General fund but the financial strategy over the coming years will be lo build thi5 fund back up to tre levels set before the impact of Covid-19 Company law requires the Trustees to prepare financial statements for each financial year th81 give a tme and fair view of the state of affairs of the charitable company and the Group and of the incoming resources and application of resources, including the income and expenditure. of the Charitable Group lorthat period. In preparing those financial statements. the Twslees are required to.. This will be achieved through re-building revenues where and keeping a dose control over th8 cost base. select suitable acwynting policies and apply them consistentty. The Trustees consider it is appropriate to treat the Charity as a going concern. observe tha methods and principles in the Charities SORP. This is due to the Trustees and Senior Management team having a clèar understan(ting of the risks facing the organisalion and robust cash mana9ement plan5. make judgements and estimates that are reasonable and prudenL The largest uncertainty facing the Charity is the ability to run èvènts at the Conference Centre in London. 110 Rochesler Row. However. stress testing the budget and resulting cash flow f0￿caSts for this risk, alongside considering other downside risks. shows that HFMA has cash reseNes available for the period to 30 June 2023. stste whether applTcable UK Accounting Standards have been followed. subject to any material departures disclosed and explained in the financial statements. prepare the finanaal statements on the going ctsncem HFMA ANNUAL REPORT 2020- 2021 Company Number: 5787972

REPORTOFTHETRUSTEES FOR THE YEAR ENDED 3oJUNE 2021 basis unless il is inappropriate lo presume that the Charitable Company will continue in operation. Forall investments made, targets will be setforthese assets lo al least equal the performance of average indices Ifor instance in the increaseldecrease in value of commercial properties or financial instruments traded). The Trustees are responsible for keeping proper accounting records th81 disclose wtth reasonable accuracy at any time the financial position of the charitable company and group and enable them to ensure that the financial statements comply with the Cornpanies Act 2006 and Charities and Trustee Investment (Scotlandl Act 2005 and the Charities Accounts (Scotlandl Regulations 2006. They are also responsible for safeguarding the a$5ets of thè charitable company 3nd the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. In so faras the Trustees arè aware.. The Trustees will rnake no direct investment in companies whose products or setvios are ac￿pted as being prejudicial to good health. In considering collective investments the Trustee5 will consider the nature and signiftcance ol the health risks associatèd the products or services of any such company whose shares form a omponent of the collective investment. CONSTITUTION AND GOVERNANCE There is no relevant audrt information of which the Charitsble Company's auditor is unaware., and HFMA was incorporated as a company lirriled by guarantee registered in England and Wales in July 2006.. a Memorandum and Article5 of Association govem it. The Trustees havè taken all steps that they ought lo have taken to make themselves aware of any ￿levant audit inlorrnation and to establish that the avdilor is aware of that information. The registered name and registered office ol the Charity and names of the Trustee. who are directors for th purposes ol C￿mpanY law. are shown on page 2 of this report. HFMA wholly owns iwo trading subsidiaries, HFMA Ltd. and HFMA Commercial Services Limited. These are private limited companies and they gfft aid any profits to the Association. The 8oard ol Trustees are the legal trustees and have control of the assets of the Charity. The Trustees are iesptsnsible for the rnaintenance and integrity of the corporate and financial informab.on included on the charitsble company's website. Legislation in the United Kingdom goveming the preparation and dissemination of financial statements may differ trom legislation in olheijurisdictions. During 2020121, the Bo8rd of Trustees comprised the National Presiden( Mo ViTr-Presidents. Past Chair and Chair ol the Audit and Finance Committee, who are nominated by the rllernbership as a whole, and a representative from each ol the three devolved nations who are elected by their branches and seven Trustees who are appointed by Board of Trustees. All the Trustees are directors ol HFMA. The Trustees confirrn that they have complied with the duties ol the charib.es Act 2011 to have due regard lo the Charity Commission's general guidance on Public Benefit. The Trustees have rèférred to the guidance in the Charity Commi55ion's general guidance on Public Benefit when reviewing the charity's aims and objectives and in plannin9 the charity's futurtr activits'es. In particular, the Trustee5 have Gonsidered how planned activities will contribute to the aims and objectives they have set. During the year the Board usually meet5 forrnally four times. When appropriate or necessary additional Board meetings are called. These meeting5 along with briefing p3p&rs for the Board ensured the Trustees were lully briefed on the risks and actions being taken 8nd fully involved in decision rnaking tsver this period. INVESTMENT POLICY The Investment Policy is to match the risks and accessibility ol the assets invesled in against the Teason behind the investments being made in that.. Over the year, in addition to regular Board meetings. the Audit and Finance Committee and the Appointments and Remuneration Committee met four limes. These committees have delegated pow8rs and responsibilities that are documented and approved by the Board. A certain level ()f investsnents will be in cash and similar inveslmenls. the key criteria being that they are acTrssible at short notice. Every effort will be rnade lo maximise interest whilst following thèse criteria. The Appointments and Rernuneration Committee also considers and recommends to the board the iernuneration of the CEO. Deputy CEO & Director of Finance. Director of Poliey & Research and the OireGtorof Education & Training. This involves a ￿VIeW of the Tharketpla￿ to allow benchrnarking to take place and consideration of the roles and responsibilities of ea¢h post Other investments wi51 be in assets that do not need lo be sold qEJick]y. An overall investment strategy will be adopted with consid8r3b.on of investing in such assets as equities and properties. Any major capital investmènt over £75k requires Trustee approval and should be supported by a business case and with appropriate professional advicè. The day to day running of HFMA is delegated by the Board to the CEO and Senior Management Team. Senior Management Team meetings take place montrly. HFMA ANNUAL REPORT 2020- 2021 Company Number: 5787972

REPORTOFTHETRUSTEES FOR THE YEAR ENDED 3oJUNE2021 Each week there is a whole-organisation meeting where the CEO leads a briefing with contribub.ons from across the organisation the operations of the organisation to manage the impact of Covid-19. The rnanagement of this risk led to all HFMA'S staff tnoving to working from home, all face lo frdce events were cancelled or moved to being run as virtual events and the conference centre 110 Rochester Row was closed. The 13 branches have their own volunte6r branch executives usually comprising a Branch Chair, a Branch Treasurer and a Branch Secretary. The Business Continuity planning ensured that the impact of Govid-19 was managed and HFMA was able lo start the year from 1 July 2020 having fully pivoted the business model. This included mitigations around cost being put in place to bring the expènditure of the Charity down to match a prudent estimate of incorne going forward frtsm 1 July 2020 The year to 30 June 2020 was the last year of the 2017-20 strategy. Due to the irnpact of Covid-19 it was determined that the years to 30 June 2021 and 30 June 2022 would be years where the focus wouk1 be on suNival and 18set. The next three-year strategy will be developed in early 2022 and will cover the three years from 1 July 2022 to 30 June 2026. Although ihese mitigations give the Board comfort that the risk around the impact of Covid-19 is being rnanaged appropriately. the risk of further negative impacts on income still exists notably at 110 Rochester Row 8nd so this is still seen as the major risk that the Charity needs to manage at the time ol writing this report. Each strategy is communicatèd to èvery member of HFMA and further details can be found on HFMA'S website W￿.hfma or uk. As usual the annual business plan lor the year ahead was also agreed as were individual business plans for each branch_ There is a Scheme of Delegation which states the level of authority required for decision rnaking and expenditure. This 15 considered by the Trustees each year and amended lo reflect changès required to allow the smwlh running of HFMA. Each line of incomelproject is monitored on a regular basis and each Manager has specific responsibility not only for the short-term management ol the risk profile but also for the long-temi prognosis of these individual income lines. Physical risk is cOVe￿d by specific systems lor example in IT recovery and backup, emergency procedures and the piovision of comprehenswe insurance for assets and personnel. HFMA is committed to r￿rUl￿"n9 Trustees with appropriate skills and talents. Vacancies for Trustee and other commrttee posts are adverts.sed widely to the membership. The Business Continuity Plan is kept up to date and is designed to ensure under any eircumstance HFMA can maintain its operations. The Appointments and R&rnuneration Committee consider the applications and they Select Trustees on the basis of established crileria. New Trustees rèceive lull induction from the Chief Executwe and regulady attend HFMA run GPD (Continuing Professional Developmentl sessions throughout the year. SERVICES PROVIDED BY OTHER BODIES Moorepay Limited. 3 division of Northgate Inforrnation Solutions, provided a payroll servi￿. RISK MANAGEMENT RSM VK Audit LLP and Audit Stsulh West NHS Audit Consorbum provid8d audit services. The Association regards the rnanagement ol risk as a key issue wrthin its overall operating frarnework. A risk ￿gIster is rnaintained and is considered regularly throughout the year by management, by the Audit and Finance Committee at each of its four meetings during the year and is annualty presènted and reviewed by the Board of Trustees. BRANCHES The 13 regional branches form an integral part of the Association. The branches havè the powers to run training and education events for the benefit of branch members_ Branch f￿ndS a￿ used to underwrite training and educabon OppOr￿nItieS and support local research initiatives. Monthly rranagemenl accounts and related information is produced and along with a progiamme of scrutiny by Inlemal auditors. this provides the infomation the executives and trustees require to run the charity and gives the assurance required for the Board to fulfil its role in terms of risk and assurance management. AUDITOR A resolution proposing that RSM UK Audit LLP be reappointed as statutory auditor of the Charity will be put to the Annual General Meeting in December 2021. The Group's key business risks are around its income due to the fact that. unlike most membership organisations, a very small amount of inwme is derived frorn membership subscriptions. Therefore, HFMA relies on othèr sources ol income to fund its rnembership actwities. In recent years these sources ol non-membership income have diversified significanuy. thus spreading the operational risk. The Trustees Report and tre strateg￿ Report contained within it were approved by the Board on 2 November 2021 and signed on its behalf by". Simon Crowther In the last quarterofthe yearto 30 Junè 2020 HFMA pNoted Trustee and Chair of the Audit Committee HFMA ANNUAL REPORT 2020- 2021 Company Number: 5787972

FINANCIALS - Statements of Financial Activities Consolidated and Charity ststements of financial activities for year ended 30 June 2021 {including Income and Expenditure Accounts) 2019-20 Unrestricted funds 2020-21 Unrestricted funds Association £'ooo Ctsnsolidatitsn Notes Association £'ooo Consolidatio £'ooo £'ooo INCOME INCOME FROM RAISING FUNDS Voluntary income Member SubsGnPtions and donation$ Activities for generating funds Trading Tumover. HFMA Ltd lex¢luding qualifrAtionsl Investrneni Intom Investment Income and Interest received Gift Aid from subsidiary 10 Association INCOME FROM CHARITABLE ACTIVITIES 1.501 Conferences Snd serninar5 827 E-Leaming (Bilesizel Member seNices Including pub11cations an(5 magazine 301 Qualifications 27 Other in¢om& 6.668 TOTAL114COME 459 459 280 280 3.476 2,922 181 72 197 460 66 1.501 827 1.118 725 725 51 53 3,181 332 30 2,816 5.453 EXPENDITURE COST OF RAISING FUNDS 11211 Costs ot generating voluntary Income cosis of fundraising trading HFMA Ltd lexduding qualifications) Management Costs Idepre¢iaiionl COST OF CHARITABLE ACTWITIES Conferences and seminars 11331 11331 13.2131 12,2931 12,0311 14301 11,2971 14791 11,2071 14791 14301 E-Le8ming (BItes￿e) Member senI￿e$ Including publicstsons and magazine QualIfi￿tionS Butsaries 11701 16351 14851 13,9261 (7.4131 TOTAL EXPENDITURE RECOGNISED GAINS ON INVESTMENTS 12.7741 49 49 1341 17791 1341 L¢NRECOGNISED GAINSIILOSSESI ON INVESTMENTS 17791 tr4ET INCOMEIIEXPENDITVREI 257 257 348 348 17791 17791 NET MOVEMENT IN FUNDS 4.385 4,385 BALANCE BROUGHTFORWARD AT 1 JULY 3.606 3.806 3.606 3,606 FUND BALANCE CARRIED FORWARD AT 30 JUNE 3,954 3,954 All the above results derive from continuing activib'es and there were no gains or losses other than those shown above. The notes on pages 14 to 27 form part ofthese accounts. HFMA ANNUAL REPORT 2020- 2021 io Company Number.. 5787972

FINANCIALS - Balance Sheets Consolidated and charity statements of financial position as at 30 June 2021 30 June 2020 30 June 2021 Association £'ooo Consolidatlon £'ooo Note$ As80¢iation £'ooo Consolidation £'ooo Fixed assets Tangible assets Intangible 355ets Investments 3,268 259 2,227 5,752 3,358 266 2,227 5.851 3,875 141 2,233 6.249 3,943 144 2,233 6,320 7b Total fixed assets Current assets Stoths Deblo Cash at bank and in hand 748 537 1,851 1,078 2,930 934 953 2,036 1,652 3,691 1,286 Totsl ¢yrTent 85sets 1,888 13.4301 14,$541 Creditcrs.. Amounts falling due within one year Net curr8nt liabillties 14,1691 15.6871 12,1441 11.7241 12,2811 11,9961 Total assets less curr8nt Ilabllitl8S Creditor5". Amounts falling du? after more than Dne year 15211 13701 Net assets Unrestricted funds General fund Designated funds Br2nch fund Bursary fund Total unrestricted funds 2.871 2.871 3,278 3,278 898 37 898 37 638 38 638 38 3,606 3,606 17 3,954 3,954 The notes on pages 14 to 27 fomi part of these accounts. The accounts were approved by the Board ofTruslees on 2 November 2021 Caroline Cla President HFMA ANNUAL REPORT 2020- 2021 li Company Number.. 5787972

FINANCIALS - Statement of Cash Flows Consolidated Statement of Cash Flows for the year ended 30 June 2020 2019-20 Notes 2020-21 £'ooo 160 Net cash Inflowlloutnowl from operatlng activitie8 £'ooo 30 Cash flows from investing a¢tivitip5 Interest rEceived 71 Dwidends received 1761 Purchase of tangible fixed a55ets 1461 Purchase of intangible fixed assets Loans ￿¢ewed Sale of investments 1501 Total inftowllouffiowl from Invesiing activtties 110 Increa5ellOe¢reasel in ca$h 16701 850 300 576 The notes on pages 14 to 28 fomi part of these accounts. Reconciliation of net cash flow to movement in cash 2020-21 £'ooo 1,076 576 Cash at 1 July 2020 IncrèasÈllDÈ¢Teasel in cash in the year Cash at 30 June 2021 1,6$2 Analysis of changes in net debt As at 30 June 2020 Cash flows As at 30 June 2021 £'ooo £'ooo £'ooo Cash and cash equivalents Cash Borrowings Debt due within one ye8r Total 1.078 576 1,652 850 1274 18501 802 1.076 HFMA ANNUAL REPORT 2020-2021 12 Company Number: 5787972

INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES AND MEMBERS OF HEALTHCARE FINANCIAL MANAGEMENT ASSOCIATION 1. Accounting Policies a) GENERAL INFORMATION HFMA Is 8 lirniled oompany and charity incorporated In Erigland and Wales. 11 is also a Charity in Scotland Tre addre55 of HFMA'S registered office is 110 Rochester Row. Victoria, London. SW1 P 1JP. The prinapal placès of business of HFMA are 110 Rochester Row, Victoria. London. SW1 P 1JP and 1 Temple Way, Bristol, BS2 OBU. The HFMA Group consisis of HFMA and all of ils subsidiaries. The nature of HFMA Group's activities are detsiled in the Trustees report on pages 4 to 10 of these aa￿unts. b) BASIS OF PREPARATION The financial statements have been prepared in accordance with Aecounb"ng and Rèporting by Charities.. Statement of Recommended Practice applicable to charities preparing their accounts in accoidance with the Financial Reporting Standard applicable in the UK and Republic of lie1a￿d IFRS 1021 leffectwe 1 January 20191- (Charities SORP IFRS 10211. The Financial Reporting Stsnd8rd applicable in the UK and Republic ol Ireland IFRS 1021 and the Companies Act 2006. HFMA meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otheNqse 5t8ted In the relevant aGcounling policy note. c) GOING CONCERN The accounts have been produced on the basis that the Charity is a going concern. This is as a result ol the trustees having a clear understanding of the risk5 Pdcing the organisation and the existence of robust cash rnattagement plans. The Charity also has budgets and resuthng cash flow5 which have been stress testetj for the year ahead which support this view. The largest ￿n￿rtaInty facing the Charity is the ability to tun events at the Conference Centre in London. 110 Ro¢hester Row. However. stress testing the budget and resulting cash flow foiecasts forthis risk, alongside considering other downskle risks. shows that HFMA has ￿sh rèserves available al least through to 30 June 2023. After tsking into a¢wunt the stress testing, there is still headroom over the period lo 30 June 2023. If an unforeseen risk occurs or the risks considered in the stress testing are of a larger quantum than considered. HFMA has the ability to sell more tsf its fixed assets investments than planned if further cash was required. The value ol these investments al 30 June 2021 w8s £2.233k. It is worth noting that these investments if realised 8nd tumed into (ash would the net current liabilities p051tion of the Charity into a net current assets position al 30 June 2021. It 15 31so worth nots'ng that included in current liabilities in the balance sheet is £3.393k ol deferred income. which ff added back would also turn the net currenl liabilities posityon into a net cutrent assets ptssiti"on. d) REDUCED DISCLOSURES In accordance with FRS 102, the Company has taken advantage of the exemplitsns from the following disclosure requirements.. Section 7 'Statement of Cash Flows, _ Presentation of a Statement of Charity only Cash Flow and related notes and disclosure5. Section 11 'Basic Finanaal Instruments, & Section 12 '01her Financial Instrument Issues, Carrying amounts. Interest Incomelexpense and net gainsilosses for each category of financial instrument.. basis of determining fair values,. details of collateral loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit Dr1055 8nd in comprehensive income. e) FUNCTIONAL AND PRESENTATIONAL CURRENCY The consolidated financial staternents are presented in sterfing which is also ihe fvnctional currency of th8 Company. fj FINANCIAL INSTRUMENTS HFMA has elected to apply the provisions of Section 11 '8asic Financial Instruments, and Seelion 12 '0ther Financial Instruments Issues, of FRS 102. in full. lo all of ils financial instruments. Financial assets and financial liabilities are recognised when the Group becomes a paty to wntraclual provisions of the instrument and are offset only when the Group currently h35 a legally enforceable right to set off the iecognised amounts and intends to either sewe on a net basis, or to realise the asset and settle the liability simultaneously. HFMA ANNUAL REPORT 2020- 2021 Company Number.. 5787972

INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES AND MEMBERS OF HEALTHCARE FINANCIAL MANAGEMENT ASSOCIATION 1. Accounting Policies (continued) fj FINANCIAL INSTRUMENTS (continued) Financial assets Trade. group and other debtors (including accrued incornel whih are receivable within one yearand which do not conslilule a financing transaction are initialty measured at amortised cost, being the transaction price less any amounts settled and any impairment losses. Where the arrangementwith 8 debtor constitutes a financing tr8nsaction. the debtor is initially measured at the presentvalue of tuture payments discounted at a markèt ratè of interest for a similar debt instrument and subsequently measured at amorti5ed cost. A provision for irnpaimient of trade debtors Is established when there Is objectNe evidence that the 3rn0unts due will not be collected according to the original letrns of the contract Impaiment losses are recognised in profit or loss for the excess of the carrying v31ue of the trade debtor over the pEsent value ol the future cash flows discounted using the original effective Interest rate. Subsequent reversals of an impairnienl loss that objectively relate to an event 0￿rring after the impairment logs was recognised, are immediately recognised in the statement of financial activities. Financial liabilities Financial instruments are classified as liabilities and equity inslrurnents accoTding to the Substan￿ of the contractU81 arrangements ellte￿d into. An equity instrument is any conti8ct that evidences a residual interest in the assets of thè Company after dèducting all of its liabilities. Where the arrangement with 3 creditor constitutes a financing transaction. the cieditor Is Initially measured at the present value of future payments discounted at a market rate of interest for a similar instrument and subsequently measured at amortised Cost. Trade. group and other creditors (including 8ccrualsl payable within one year that do not constitute a finanryng transaction are initially measured at the tr3n5aclion pric? and subsequently measured at amortised c05t. being transaction price less any amounts settled. g) GROUP FINANCIAL STATEMENTS These financial statements consolidate the results of the Healthcare Financial Management Association. including its branches IHFMAI and its wholly owned subsidiaries HFMA Ltd and HFMA Commercial Service5 Lirniled IHCS Ltd). Trading income and expenditure is identified separately in the Statement ol Financial Activities and assets arid liabilities aTe consolidated on a line-by-line basis. h) INCOME Incorne is recogni5ed when you meet the criteria of entitlement. measurement and probability. Income invoiced for postye8r end activity is accounted for as deferred income and released to incoming resource5 in the relèvant period subsequent to thè year end. The following specific policies apply to categories of income.. Membership income is treated as voluntary income and are deferred over the period that services are provided. li. Association and Branch event income received is deferred if in advance of the date of the event, this income is recognised in the period which the event is held. iii. Partner programs membership fees are deferred over the period that services are provided. iv. Grant income is recognised on receipt unless the donor imposes conditions which must be rnet before the charity has unconditional enlidement. v. Income from training and education (including publications, qualifications and e-learning packagès) is iecognised when invoiced. vi. Investment income is recogni5ed on a receivable basis. vii. Government grants are recognisèd at the fair value of the asset received or receivable when there is reasonable assuran￿ that the grant conditions will be met and the grants will be received i) VOLUNTEERS The value of servi￿$ provided by volunteers is not incorporated into these finanaal ststemenls. There are many contributions made by volunleets including event speakers, committee members, Branch comrnittee members and Trustees. j) EXPENDITURE Expenditure recognised when a liability is incurred and allocated to the appropriate hèading in tt)e accounts.. HFMA ANNUAL REPORT 2020- 2021 14 Company Number.. 5787972

INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES AND MEMBERS OF HEALTHCARE FINANCIAL MANAGEMENT ASSOCIATION 1. Accounting Policies (continued) j} EXPENDITURE (continued) i. Costs of generating funds include the cost of membership administration. generating HFMA Ltd and HCS Ltd trading incorne and fees lo manage investments. ii. Costs of charitable activities are the costs of activities run to support the objects of the Charity. iii. Govemance costs are the costs associated with the g0Veman￿ arrangements of the Charity which are primarily a550Cl8led with con5titulional and statutory rèquirements. These costs include extemal audit and trustees board and committee meetings. iv. Support costs include central fvnctions which have been allocated to activity c05t categories on 8 basis consistent with the use of those resour￿5 e.g.. using staff lime as basis ol apportionment. v. Redundancy costs are recognised at the point when the Charity is cornrnitted to maknng the payment vi. Any irrecoverable element ol VAT is included with the item ol expense to which il relates. kl LEASED BUILDINGS AND EQUIPMENT The Association rents an offiTr and a Conference Centre on 8 long lease. Long lease propety is included in fixed assets and written off on a straight-line b8S15 over 50 years from the point ol first use. In the case of one long lease in Londtrn the fixed asset is written off on a straight-line basis over 50 years down to a residval value that is based on cost and is deemed appropnate after considering the market value of the long lease. The costs of lease improvements and benefttof intiodu¢tory rèntand Servi￿ charge free periods are allocated on a straight- line basis over the period to the cornmencerHent of full rent in accordance with FRS 102. All existing leases for cars and office equipment are treated as operating leases. The tille to the cars and èquipment remains with the lessor who retains the iisk and rewards of ownership and the lease terms are shorter than the economic lrfe. Rental charges are charged on a straight line basis over the lerm ol the lease. 11 TANGIBLE FIXED ASSETS Lease irnprovements and equipment acquired with a value in excess of £5.000 are capitalised at cost. Depre¢￿tiOn is provided when it comes into use to recognise the cost of the asset, its residual value and its estimated useful life and is included in support costs. Dèpreaation on these assets is calculated as follows.. Land and Buildings- over 50 years. Lease and leasehold improvements over the period to the first break clause in the lease. subjèct tr) maximum of 50 years or reduced for tme expectecl lrfe ol the asset. As lloted in j abovè one Iong lease is being written down lo a residual value. Furni￿re and equipment- over 5 to 10 years. m} INTANGIBLE FIXED ASSETS Software davelopment costs and intellectual property are included in Intangible Fixed Assets al cost and are written off on 5traight-line basis over the life of the a5sel which can vary from between S and 10 years. n) INVESTMENTS Current asset investrnents are included at market value. Gain5 and losses on disposal and revaluation are charged or credited to the Statement of Financial Activitie5. o) STOCK Stock is carried at the lower of cost or net realisable value. Stock comprises publications and training packages held for resale. HFMA ANNUAL REPORT 2020- 2021 Company Number.. 5787972

Notes forming part of the Financial Statements (continued) Forthe yearended 30 June 2021 1. Accounting Policies (continued) p) FUNDS STRUCTURE All fund5 are unrestricted Inwme funds. These are 5plIt into undesignated (the General and Branches fundsl alld designated funds (the Bursary and Deep Reserve furtdsl. The General and BianehÈs funds should bè built up to at least six months, worth of total annual costs ol HFMA to cover short-tem falling off in demand for the seplices offered. The Bursary fund is to support those with low incomes accessing the seNices of HFMA or assisting members in aciivities that benefit healthcare in the UK that they would not be able to perform without support. q) PENSIONS I staff ar2 2rnployed solely by the Association. Two Group Personal Pension Schemes are provided for staff joining the Asswiation". All employees are automati￿lIY enrolled into a defined contribution scheme whereby the Associatio contributes 5 /ts of the employee's salary and the ernployee contributes a minimum 0131.. Employees can opt out of this scheme if they wish. These funds are the property of the illdividual employees. All employees can choose to enrol into a further Group defined contribution scheme whereby the Association contributes 10°/0 of the employee's salary and the employee contributes a minimum of 6%. These funds a the propety of the individual employees. Some members of staff are members of the NHS PÈnsion Scheme as designated under a direction agreernent granted by the Secretary of State. The scheme is a multi-employer defined benefit scheme where the share of the assets and liabiliti applicable to each employer Is not identified. Accordingly. these financial statèments include pension costs payable on a defined contribution basis in accordance with FRS 102. Pension costs charged to the Statement of Financial Activibes represent the ctsntributions payable by the Association during the ye3r. r} FOREIGN CURRENCIES Assets and liabilities in foreign currency are translated into sterling at the rate of exchange ruling at the balance sheet date. Transaction5 in the year in foreign currency are translated into slerfing at the rate of exchange ruling at the date of the transaction. Exchange drflerences are recognised in the Statement of Financial Actrrfities when arriving at the net movemènt in funds. s) PROVISIONS Provisions are recognised when the Company has an obligation at the reporting date as a result of a past event which f( is probable will result in the transfer of economic benefits and that obligation can be estimated reliably. Provisions are rneasured at the best estimate of the amounts required to settle obligation. Where the effect of the time value of Money is material, the provision is based on the present value of those arnounts, discounted at the pre-tax discount rate that reftects the risks specific to the liability. The unwinding of the dis¢ount is recA)gnised wthin interest P8y8ble 8nd similar expenses. t) SIGNIFICANT JUDGEMENT AND ESTIMATES The only estirnate of 51gnificance made by the trustees in the preparation of the financial statements is considered to be the period over which leasehold improvements are depreciated. which is as disclosed in Note 1 kl The key judgmènt made by the trustees is the residu81 value ol thè long leasehold interest in Rochester Row which the trustees considered to be materially cornparable to its C05t. HFMA ANNUAL REPORT 2020-2021 Company Number: 5787972

Notes forming part of the Financial Statements (continued) For the year ended 30 June 2021 2. Income al INCOME FROM RAISING FUNDS VOLUNTARY INCOME The voluntary income received consists of tllembetship subscriptions and grants and don3bons. Monies received from the Coronavirus Job Retention Scheme ICJRSI a￿ shown under Grants and Donations below. 2019-20 Associatlon Consolldatlon £'ooo £'ooo 190 190 Subscriptions Grants and Donations ICJRS payrTrentsl 2020-21 Asgoclation Consolldatlon £'ooo £'ooo 181 181 269 269 99 99 459 459 280 280 ACTIVITIES FOR GENERATING FUNDS For details of the trading turnover of HFMA Ltd, please see note 17a and HFMA Commercial Services Limited note 17b. INVESTMENT INCOME AND I￿EREST RECEIVED 2019-20 Association Consolidation £'ooo £'ooo 72 InvÈsbnÈnt Incoma 2020-21 Association Consolidation £'ooo £'ooo 38 66 159 Rental income 159 181 72 197 66 b) INCOME FROM CHARITABLE ACTIVITIES CONFERENCES AND SEMINARS 2019-20 Association Consolldatlon £'ooo £'ooo 1,234 1.234 National and regional events 267 267 Branch events 2020-21 Association Con501idation £'ooo £'ooo 1.047 1,047 71 71 1,501 1.501 1.118 1,118 HFMA ANNUAL REPORT 2020- 2021 Company Number.. 5787972

Notes forming part of the Financial Statements {continued) For the year ended 30 June 2021 3. Expenditure Salary and support costs lincluding govemance costs) have been allocatèd tr) the relevant income stream. Salary costs have been split on the basis of salary percentage and the remaining support costs have been split on ihe basis of staff time. All Charitable Activities are carried out through direct services. The￿ is no grant fvnding to third parties. COST ANALYSIS 2020-21 Direct Costs Support Costs TOTAL TOTAL 2020-21 2019-20 £'ooo £'ooo £'ooo £'ooo Generating Voluntary Incorne Conferences and Seminar5 129 133 121 701 506 1,207 479 1,911 430 E-learning Member Services including publications and magazine 32 447 33 781 814 1,101 Qualification 485 485 635 Bursary Total AssocÉation 770 2.348 655 3,118 2.293 4,200 3,213 HFMA Ltd 1,638 Consolidated 2,408 3.003 5.411 7,413 al COSTS OF GENERATING FUNDS These consist of Generating Voluntary Income ancl HFMA Ltd noted above. b) COSTS OF CHARITABLE ACTIVITIES These consist of Conferences and Seminars. Publications and Training Packages. E-learning, Membership Services including Healthcare Finance magazine, the Qualifications and Bursary noted above. These are split out on the face Of the Statement of Financial Adivilies. A breakdown of conferen￿ and seminar costs split be￿een cenlie èvents and branch events are shown below.. 2019-20 2020-21 Association Consolidation Association Consolidation £'ooo £'ooo £'ooo £'ooo 378 378 Branch events 110 110 1.653 2,031 1,533 Centre events 1,911 1.187 1.297 1,097 1,207 4. Audit Fees The total external audit fees were.. 2019-20 2020-21 A5$0ciation Consolidation £'ooo £'ooo 16 16 A550eiation Consolidation £'ooo 15 Charity 3 HFMA Ltd 18 £'ooo 20 20 Other services supplied by affiliates of RSM UK Audit LLP HFMA ANNUAL REPORT 2020- 2021 Company Number.. 5787972

INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES AND MEMBERS OF HEALTHCARE FINANCIAL MANAGEMENT ASSOCIATION 5. Staff Costs and Trustees, Remuneration All staff a￿ employed by HFMA and therefore the figures below are br both the charity and group accounts. Trustees give their serviTr voluntarily and received no remuneration or benefits in kind in respect of the perforrnance of their duties as a Trustee in the year see note Sf. a) STAFF COSTS 2019-20 £'ooo 3.040 Staff salaries 301 Employers Nl costs 368 Pension costs 151 Sundry lincluding Childcare Vouchers and Staff Training) 2020-21 £'ooo 2.503 273 350 89 3,860 3,216 Staff costs are allocated according to the fvnctions of each staff rnember". £1.540k12019120 £1.344kl is induded in direct costs, 21.676k12019120 £2.516kl in support costs together they form part ef trading costs, fundraising costs, and charitable expenditure. as appropriate (see note 31. During the year redundancy costs of £83k12019120 £1kl were incurred and are included in the table above. The redundancy costs reflect amounts paid to re-align the Charity's staff structure to the group's future operating plan. b) AVERAGE NUMBER OF STAFF DURING THE YEAR The average employee headcount throughout the year.. 2019-20 44 Operab'onslTechnical 9 Qualification 12 Business Development 19 Administration 84 2020-21 40 67 c} EMOLUMENTS The number of employees whose emoluments (including remuneratstsn and benefits in kind but excluding pension contributions) that amounted tt) over £60k was-. 2019-20 2020-21 2 Band £60.000- £89,999 2 Band £70,000- £79.999 1 Band £80.000- £89.999 1 Band £100.000- £109.999 Band £110.000- £119.999 Band £170.000- £179.999 Band £180.000- £189.999 d) KEY MANAGEMENT The key management of HFMA during the year were the Chief Executive, Deputy Chief Executive & Director of Finan￿, Director ol Policy & Research and Director of Education & Development whose combined working weeks totalled to the equivalent of 3.3 fijll time equivalent IFTEI employees. Their employee benefits including remuneration. benefits in kind, ernployers pension costs and employers National Insurance total £526k for the year12019120 Chief Executive, Deputy Chief Executive & Director of Finance. Director of Policy & Research and Director of Education & Development, 3.8 FTE and total cost £525kl. e) PENSIONS As detailed in Pensions accounting poliaes note 1 there are currenuy three pension schemes operating. HFMA ANNUAL REPORT 2020- 2021 Company Number: 5787972

INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES AND MEMBERS OF HEALTHCARE FINANCIAL MANAGEMENT ASSOCIATION 5. Staff Costs and Trustees, Remuneration (continued) fj TRUSTEES Trustees give their Se￿1￿$ voluntarily and rec8ive no remuneration or benefits in kind for the performancè of their duts.es as a Trustee. Trustees, fees for other servtees and out of pocket expenses paid direct or to third parties tt)at were reimbursed by the Association are.. 2019-20 Type of Expense £'ooo 3 Subsisten 7 Travel 6 Accommodation 16 2020-21 £'ooo 6. Property and Operating Lease Commitments The total future minimum commitments payable in respect of property and operating leases shown below are analysed according to the expiry of the leases. 2019-20 Association £'ooo 2020-21 Consolidation Association Con501idation £'ooo £'ooo £'ooo 19 19 One year or less 46 Two lo five year Over 5 years 19 27 19 27 Propèrty and operating lease costs shown within the statements ol financial activities within support costs were £44k 12019120 £55kl lor Association and £44k12019QO £55kl lor the consolidated group. 7.a) Tangible Fixed Assets Tangible fjxed assets held in the HFMA Group consolidated accounts are b810w- Freehold Long Leasehold £'ooo Leasehold Improvements £'ooo Equipment Total £'ooo £'ooo 490 £'ooo Cost as at 1 July 2020 Additions Cost as at 30 Junè 2021 2.030 1.456 3,976 670 4,646 670 670 2,030 1,4S6 490 Cumulative depigciation as at 1 July 2020 Depreciation charge for the year Cumulative depreclation as at 30 June 2021 29 272 27 317 58 618 85 29 299 375 703 Net book value as at 1 July 2020 670 2.001 1.184 173 3.358 Net book value as at 30 June 2021 670 2001 1,157 115 3,943 HFMA ANNUAL REPORT 2020- 2021 20 Company Number: 5787972

Notes forming part of the Financial Statements (continued) For the year ended 30 June 2021 7. a) Tangible Fixed Assets (continued) Tanglblo fixed assats held in the HFMA Company accounts arè below= Freehold Long Leasehold Leasehold Improvements Equipment Total £'ooo £'ooo £'ooo 1.445 £'ooo £'ooo Cost as at 1 July 2020 Addibons C05t as at 30 JunE 2021 2,030 293 3.768 670 4.438 670 670 2,030 1,445 293 Cymulalwe d$prèciation as at 1 July 2020 Depreciation charge for the year Cumulative depreeiatlon as at 30 June 2021 29 260 27 213 502 61 29 287 247 563 Net book value as at 1 July 2020 670 2.001 1,185 80 3.266 Net book value as at 30 June 2021 670 2,001 1.158 46 3,87S 7.b) Intangible Fixed Assets Intangibla fixed assets held in the HFMA Group ¢on$olidated aecounts are below: Intellectual Property £'ooo Software Total £'ooo 877 £'ooo Cost as at 1 July 2020 Additions Cost as at 30 June 2021 35 912 35 877 912 Cumulatr¢e amortisation as at 1 July 2020 Amortisation Charge for the year Cumulative amortisation as at 30 Jun• 2021 35 611 122 646 122 35 733 768 Net book value as at 1 ju￿ 2020 266 266 Net book value a5 at 30 June 2021 144 144 HFMAANNUAL REPORT 2020- 2021 21 Company Number.. 5787972

Notes forming part of the Financial Statements (continued) Forthe year ended 30 June 2021 7.b) Intangible Fixed Assets (continued) Intangible fixed assets held in the HFMA Company accounts are below= Softsvare Total £'ooo £'ooo Cost as at 1 July 2020 Additions Cost as at 30 June 2021 858 858 858 858 cumulab.ve amortisation as al 1 July 2020 Amortisath"on charge for the year Curnulative amortisation as at 30 Junè 2021 599 118 599 118 717 717 Net book value as at 1 July 2020 259 259 Nèt book valuè as at 30 June 2021 141 141 7. c) Investments All investrnents are owned by HFMA and therefore the figures below are for both the Charity and group accounts. Market Value as Disposal Market value as Gain in at 30 June 2020 at 30 June 2021 year £'ooo £'ooo £'ooo 1.237 1.252 165 990 981 141 2.233 306 £'ooo 150 150 300 CCLA Funcls Barclays Funds Total The gain in the yearwas split befv￿en £49k of realised gain gn the disposals and an unrealised gain of £257k. 8. Debtors as at 30 June 2020 Association Consolidation £'ooo £'ooo 466 1,542 General debtors Arnounts due from group companies 309 Prepayments & accrued income 1,851 as at 30 June 2021 Association Consolidation £'ooo £'ooo 744 1,858 275 748 178 2.036 934 9. Cash at bank and in hand The bank and cash accounts held are as follows.. as at 30 June 2020 Association Consolidation £'ooo £'ooo 537 1,076 Curienl accounts 537 1.076 Total cash balan as at 30 June 2021 Association Consolidation £'ooo £'ooo 953 1.652 953 1,6S2 HFMA ANNUAL REPORT 2020- 2021 22 Company Number: 5787972

INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES AND MEMBERS OF HEALTHCARE FINANCIAL MANAGEMENT ASSOCIATION 10. Creditors- Amounts falling due within one year as at 30 June 2020 Association Consolidation £'ooo £'ooo as at 30 June 2021 Assoclation Cottsolldation £'ooo £'ooo 850 850 274 571 1.144 116 56 Bank loans ICBIL'sl 503 Trade creditors Amounts due io group companies 80 Social security creditors 32 Pension creditors 512 Other creditors 500 Accruals 3.027 Deferred income 4.654 118 1.312 80 32 473 319 1,096 3,430 116 56 340 1.389 4.169 466 3.628 5.687 The Coronavirus Business Interruption Loan ICBIL'sl has nil% interest payable, has security taken over 110 Rochester Row in London and is repayable on 15 February 2022. Deferred income as at 30 June 2021 consists of the income for events and seNice delivery that takes plaTr in the next finanGial year. Movements on deferred income for events and service delivery that takes place in the next financial year was as follows.. 2019-20 2020-21 Association Consolidation Association Consolidation £'ooo £'ooo £'ooo £'ooo 1.418 3.398 Deferred Income falling due within one year as at l July 13.3981 Released during year 3.027 Additional Deferred Income for year 3,027 DefeFied Incomè falling due wthin one year ￿rried forward as at 30 June 1.096 3,027 13,0271 3,628 11.4181 1.096 11.0961 1.389 1.096 1,389 3,628 11. Creditors - Amounts falling due after more than one year as at 30 Junè 2020 Association Consolidation £'ooo £'ooo 521 Deferred Income $21 as at 30 June 2021 Association Consolidation £'ooo £'ooo 14 370 14 370 Deferred Income as at 30 June 2021 consists of the income ft)r èvents and Serv$￿ delivery that take5 pla￿ in More than one year. Movements on deferred income that relates to income for even15 and servTce delwery that takes place in more than one year were as follows.. 2019-20 2020-21 Assoclation ConsolÈdation £'ooo £'ooo A¥$ociation Consolidation £'ooo £'ooo 509 Deferred Incorne falling due after more than one year as at 1 July 11271 Released during yeaF 139 Addition81 Deferied Income for year 521 Defer￿cl Income falling due after rnore than one year carried forward a$ at 30 June 521 12041 53 14 14 370 HFMA ANNUAL REPORT 2020- 2021 Company Number.. 5787972

INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES AND MEMBERS OF HEALTHCARE FINANCIAL MANAGEMENT ASSOCIATION 12. Financial Instruments The carrying amount of the Group's financial instruments were.. Financial assets as at 30 June 2020 Association Consolidation £'ooo £'ooo 466 1,542 General debtors Amounts due from group companies 302 Accrued incorne as at 30 June 2021 Association Consolidation £'ooo £'ooo 744 1,858 270 179 170 Financial liabilities as at 30 June 2020 Association Consolidation £'ooo £'ooo as at 30 June 2021 Association Consolidation £'ooo £'ooo 850 850 274 571 1.144 340 Bank loans ICBIL'S) 503 Trade crecSitors Amounts due to group companies 500 Accruals., less than one year 118 1,312 319 466 13. Analysis of Net Assets of Branches The branches are part of the Associab"on and run local training and education events forthe benefit of branch members. Net 3ssets held by the branches were". Net assets at 30th June 2020 £'ooo 49 22 51 24 27 70 62 12 Branch Net assets at 30th June 2021 £'ooo 42 21 45 24 36 72 56 14 96 16 68 127 21 638 East Midlands Eastem Kent, Sussex and Surrey London North West Northem Northem Ireland Scotland South West South Central Wales West Midlands Yorkshire and Humber 18 75 162 32 698 The overall deficit for the branches for the year was £60k12020 a surplus 01 £48kl. HFMA ANNUAL REPORT 2020- 2021 Company Number.. 5787972

INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES AND MEMBERS OF HEALTHCARE FINANCIAL MANAGEMENT ASSOCIATION 14. Reconciliation of net expenditure to net cash flow from operating activities Year to 30th June 2020 £'oo 17791 230 Yèar to 30th June 2021 £'ooo 348 207 1491 12571 1661 183 11851 32 30 Net Incomellexpendituiel for the year. Depreciation and arnortisation Realised lossllgainl on sale of inve51menl Unrealised lossllgainl on investment Interest and dividend5 receivable EBITDA Ilncreaselldecrease in debtors Increaselldecreasel in creditors Net cash Inflow from operating actÈvities 34 72 15871 889 11421 160 15. Related Paty Transactions The Association hold5 the entire issued share capital 011 x £1 Ordinary Shares in HFMA Ltd. a piivatè limitèd company incorporated in England and Wales (see note 17al. Thi5 represents the entire voting capital of HFMA Ltd. HFMA Ltd undertakes to remit all profits from HFMA Ltd to HFMA under the gift aid scheme. Transactions with wholly owned group companies are detailed in notes 8. 10 and 16. HFMA charges a percentage of its staff and overhead costs to HFMA Ltd based on the proportion of stsff and management activity committed to the Gornpany. The amount recharged in the yearw8s £964k12019120 £1.274kl. The Association holds the entire issued share capital of 1 x £1 Ordinary Shares in HFMA Commercial ServiTrs Limited IHCS Ltd), a private limited company incorpofated in England and Wales (see note 17bl. This represents the entire voting capital of HCS Ltd. HCS Ltd undertakes to remit a11 profits from HCS Ltd to HFMA under the gift aid scheme. HFMA charges 8 percentage ol its staff and overhead costs to HCS Ltd based on the proportion of staff and management actNity committed to the Company. The amount recharged in the year was £nil12019120 £nill. In order to facilitate a bank aocount pooling airangement there is an unlimited Inter Cornpany Composite Guarantee in respect ol the bank accounts of HFMA. HFMA Ltd and HCS Ltd by which each company guarantees the liabilities ol the other group members to National Westminster Bank Plc. Most of the Charity Trustees are NHS senior managers whose organisations purchase services from HFMA and its subsidiaries in the normal course ol activities. 16. Subsidiaries a) HFMA LTD The principal activities of the company are providing marketing services, arranging 5ponsotship and advertrsing, running a Conferen￿ centre and running general and tsilored events for the healthcare communty. The Financial Statements ol HFMA Ltd for the year to 30 June 2020. as consolidated into the accounts lor HFMA, were= HFMA ANNUAL REPORT 2020- 2021 Company Number: 5787972

INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES AND MEMBERS OF HEALTHCARE FINANCIAL MANAGEMENT ASSOCIATION 16. Subsidiaries (continued) PROFIT AND LOSS ACCOUNT Year to 30 June 2020 £'ooo 3,879 Tumover 11.8661 Cost ol sales 2,013 Gross profrt 49 Interest received 2,062 16841 AdrniDistralion 11.2741 Association recharge 104 Net r8sult Year to 30 Junè 2021 £'ooo 1940 2,404 27 2,431 11.0071 964 BALANCE SHEET Asat 30 June 2020 £'ooo 99 Fixed assets 2.963 Current asséts 12.5431 Creditors". Amounts falling due within one year 519 Total assets less current liabilities Creditors.. ATnounts fallin9 due after more than one year Net assets Asat 30 June 2021 £'ooo 71 2.996 12.4761 591 15191 15911 The tumover in HFMA Limited totalled £3.344k12020 £3.879kl fof the year of which £133k12020 £153kl related trj activities performed for HFMA which is removed on consolidation. Therefore. in the consolidated accounts tumover relating to HFMA Lirnited is shown as £3,211k12020 £3,726kl. b) HFMA COMMERCIAL SERVICES LIMITED {HCS LTD) COMPANY NUMBER 6384842 The principal actNity of the company was providing consultanw seTvices to the healthcare indu5ty. There was no trading in this subsidiary in the year to 30 June 2021 or in the year ending 30 June 2020. The Financial Statèments of HCS Ltd for the year to 30 June 2021. as con501idated into the accounts of HFMA had £nil net assets130 June 2020 £nill. 17. Statement of funds Trading funds are the funds held in the subsidiary CoMpan￿s. all other funds are held by the Charity HFMA. Unrestricted funds at 1 July 2020 Surplus1 (Deficit) £'ooo Transfers Unrecognised at 30 June 2021 gainslllossesl £'ooo £'ooo £'ooo £'ooo General funds Trading funds General fvnd Designated funds Branch fund Bursary fijnd Consolidated 460 14601 460 2,871 12971 244 3.278 698 37 3,606 1731 638 38 3,954 91 2S7 The transfers between funds relate to the total Gift Aid lo the Association Centre from the tr8ding subsidiaries. HFMA ANNUAL REPORT 2020- 2021 Company Number: 5787972

INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES AND MEMBERS OF HEALTHCARE FINANCIAL MANAGEMENT ASSOCIATION 18. Analysis of net assets be￿&en funds HFMA Group Analysis of net assets be￿een funds as at 30 June 2021 General fund Branch fund Bursary frjnd £'ooo Total fund £'ooo 6,237 1,601 1,107 15,2971 13701 £'ooo 83 13 932 13901 £'ooo 6,320 1,652 2,039 15,6871 13701 Fixed and intangible assets Cash at bank and in hand Other current assets Current liabilib-es Liabilities due after rnore than 1 year 38 3,278 638 38 3,954 HFMA Company Analysls of net assets betsveen funds as at 30 June 2021 General fund £'ooo 6,166 902 10 13,7861 1141 3.278 Branch fund Bursary fund Total funds £'ooo 83 13 925 13831 £'ooo £'ooo 6,249 953 935 14,1691 1141 3,954 Fixed and intangible assets Cash at b8nk and in hand Other current assets Current liabilitie5 Liabilities due after more tran 1 year 38 638 38 19. Capital commitments At 30 June 2021. there were £364k12020 £nill capital cornrnitments for activities wntrarted for but not provided in the financial statements. 20. Contingent asset At 30 June 2021. there wa5 a contingent assét relating to an Insuran￿ daim for business interrupb.on due to the impact of Coronavirus on HFMA'S trading aolivities. The insurance policy caps the claim at £100k but at the lime of signing the accounts HFMA are unable to determine what value, if any, may be paid by the insurance company HFMA ANNUAL REPORT 2020- 2021 27 Company Number.. 5787972

INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES AND MEMBERS OF HEALTHCARE FINANCIAL MANAGEMENT ASSOCIATION Opinion We have audited the financial statemerits of Healthcare Financial Managernent Association (the 'parent charitable company'l and its subsidiarie5 Ithe 'group'l for the year ended 30 June 2021 which comprise the Consolidated and Ghaiity SlateEnenl of Financial Activities (including the Summary Income and Expenditure Accounti the Gonsolidated Charity Balance Sheets. the Gon501idated Statement of Cash Flows and notes to the financial statements. induding signifi¢ant aocouriting policies. The financial rep(>rting fiamework that has been applied in their preparabon is applicable law and United Kingdom Accounting Standards. including FRS 102 'The Financial Reporb"ng Standard applicable in the UK and Republic of Ireland" (United Kingdom Generally Accepted Accounting Praeticel. Based on the work we have performed. we have not identified any rnateiial unc8rtainties relating to events or conditions that. individually Qr collectNePg, may cast significant doubt on the group's or parent charitable ompany's ability lo continue as a going con¢em for period of at least twelve months from whèn the ffnancial statements are authorised for issue. Our responsibilities and the responsibilities of the trustees with respect lo going concem are described in the relevant sects'ons ol this reporL other information The other inlomation comprises the infomation included in the Trustees Report otherthan the financial staternents and our auditorfs report thereon. The trustees are responsible for the other infomn8tion contsined within the Trustees Report. Our opinion on thè financial statements does not cover the other information and. except to Ihe extent othepNise explicrtly stated in our report. we do not exprèss any form of assurance con¢lusion thereon. In our opinion the financial stslernents.. give a true and fair view of the state ol the group'5 and the parent charitable company's affairs as at 30 June 2021,. and of the group's and the parent charitable Company's incorning resources and applicab.on of resources. including their income and expendilure. for the year then Ènded., have been prop&rfy prepared in accordance with United Kingdom Generally Accepted Accounting Practice., and have been prepared in accordance with the Companies Act 2006. the Charlb"es and Trustee Investment Iscotlandl Act 2005 and regulations 6 and 8 of the Ch8ri1ie5 Accounts (Scotlandl Regulations 200613s amended). Our responsibility is to read the other information and, in doing so. ¢onsider whether the other inforrnation 15 rnaterially inconsistent with the financial statements or our knowledge obtained in tt)e course of the audit or otherwise appears lo be materially misstated. If we identify such material inconsistències or apparent material mi5St8temenls. we a￿ required tr) detennine whether this gives rise to a m3terial misstatement in the financial staternents themselves. If, based on the work we have perfoitned, we condude that there is a material mi5Statement of this other information, we are Tequiied to report that fact. Basis for opinion We have been appointed auditor under section 441111¢) of the Charities and Trustee Investrnent Iscotlandl Act 2005 sects'on 151 of the Charities Act 2011 and under the Companies Act 2006 and ièport in accordan￿ wth regulations made under those Acts. We have nothing lo rèport in tt)is regard. Opinions on other matters prescribed by the Companies Act 2006 In our opinion. based on the wort( undertaken in the course ol the audit.. the infomiation given in the directors, report and the strategic report. prepared for the purposes of company law and included within the Trustees Report, for the financial yearforwhich the financial ststements are prepared is consistent with the financial slalemenls.. and the directors, report and the strategic report. included within the trustees. annual report, have been prepared in accordance with applicable legal Tequirements. We conducted our audit in accordafjce with Inlerftalional Standards on Auditing IUKI IISA5 IUKII and applicable law. Our responsibilities under those standards are further described in the Auditorfs responsibilities forthe audit of the financial statements section of our report. We a independent of the group and paienl charitable company in accordance with the ethical requirernents that are relevant to our audit of the financial slalements in the UK. including the FRC'S Eihical Standard and we have fu5fi11ed our other ethical responsibilities accordance with these r￿UIreMents. We believe that the audit eviden￿ we have obtained is sufficient and appropnate to provide a basis for our opinion. Conclusions relating to goirlg concern In auditing the financial statements. we have wncluded that the trustees. use of the going concem basi5 of accounting in the prèparation of the finanaal staterllents 15 appropriate. HFMA ANNUAL REPORT 2020- 2021 Company Number.. 5787972

INDEPENDENT AUDITOR'S REPORT (continued) The extent to which thg audlt was consldÈrÈd ¢apable of detecting ilregularities, including fraud Irregularities are instances of non-compliance with laws and regulations. The objectwes ol our audit are to obtain sufficient appropriate audit evidence regarding compliance with laws and regulations that have a direct effect on the detemination of material amounts and disclosures in the financial statemenis, to perfomi audil procedure5 to help identify instances of non-compliance with other laws and regulations that may have a material effect on the financi81 Statements, and lo respond appropriately to identified or suspected non-compliance with laws and wulations identified dyring the audit Matters on which we are required to report by exception In the light ofthè knowledge and understanding of the group and the parent charitable company and Iheir environment obtained in the course of the audit, we have not identified material misstatements in the directors, report or the strategic report, included within the Trustees Report. We have nothing to report in r&spect of the following atters whère thè CornpaniÈs Act 2006 and the Charit"a$ Accounts (Scotlandl Regulations 2006 las amended) quire us to ￿port to you If, in our opinion.. sufficient. adequate and proper accounting records have not been kept by the parent charitable company, or retums adequate for our audit have not been receNed from branches not visited by us., or the parent charitable company financial statements are not in agreement with the accounth.ng reeords and returns., or ertain diselosurès of trustees, remuneration specified by law are not made.. or we have not received all the information and explanations we require for our audil In relation to fraud. the objects.ves ol our audit a￿ to identify and assess the risk of material rnisstatement of the financial statements due to fraud, to obtain sufficienl appropriate audit evidence regarding the assessed risks of rnaterial misstatement due to fraud through designing and implementing appropriate responses and to respond ppropriately to fraud or suspected fraud identified during the audit. However, it is the primary responsibility of management, with thè oversight of those charged with govemance, to ensu￿ that the entity's operations are conducted in accordance with the provisions ol laws and regulations and lor the prevention and detection of fraud. Responsibilityes of trustees As explained more fully in thè statement of trustees, responsibilities Set out on pages 7-8 the trustees (who a also the directors of the charitable company for the purposes of company lawl are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view and for such intemal control as the trustees determine 15 ne￿sSary lo enable the preparation of financial statements that are free frorn material misstatement. whether due to fraud or error. In identifying and assessing risks of m8leri81 rllisststement in ￿SpeCt ol irregularities. including fraud. the group audit engagement team.. obtained an understsnding of thtt n*ure of the sector. including thè legal and regulatory framework that the group and parent charitable company operate in and how the group and parént charitable company are complying with the legal and regulatory frarnework". inquired of managernenl. and those charged with govem3nce, about their own identification and assessment of the risks of irregularities, including any known actual. suspected or alleged instances of fraud.. diSCu￿ed mattels about non-complian￿ with laws and regulab.ons and how fraud might occur including assessment of how and where the financial statements may be susceptible to fraud. In preparing the financkql ststements, the tmstees are responsible for assessing the group's and parent charitable companys ability to continue as a going concem. disclosing. as applicable, matters related to going COn￿M and using the going concem basis of accounting unles5 the ttustees eithei intend to liquidate the group or parent charitable company or to cease operations, or have no realistic altemative but to do so. Auditor's responsibilitias for the audlt of the financial staten3ents Our objectives are to obtain reasonable assurance about whether the financial statement5 as a whole are free from rnaterial misstatement, whether due to fraud orerror. and to issue an auditorts report that Includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that audit conducted in accordance with ISAS IUKI will always detect a material misstatement when il exists_ Misstatements can arise from fraud or error and ale considered material if, individually or In the aggregate. they could reasonably b¢ expected to influenTr the economic decision$ of users taken on the basis of these financial stslements. As a result of these procedures we consider the most significant laws and regulations that have a direct impact on the financial statements are FRS 102. Charities SORP IFRS 1021. Companies Act 2006. Charitie5 Act 2011, Charities and Trustee Investment Iscollandl Act 2005, the parent charitable company's goveming document and tax legislation. We perfotrned audit procedures to detect non- complian￿S which rnay have a material impact on the rillancial statements which included reviewing the financKal statements including the Truslees, Report, remaining alert lo new or unusual transactions which may not be in accordance with the goveming doouments. inspecting correspondence with local tax aulhorits"e5 and evaluating advice received from intemavextemal advisors. HFMA ANNUAL REPORT 2020- 2021 Company Number: 5787972

INDEPENDENT AUDITOR'S REPORT (continued) The most signfficant laws and regulations ihat have an indirect impact on the financial Statements are those in relation to the UK General Data Protection Regulation (UK GDPRI. We performed audit procedures to Inquire ol managernent whether the group is in Complian￿ with these law and regulations and inspected correspondence with regulatory authorities. The audit engagement team identified the dsk of management override of controls and thè èxistèneè and valuation of income as the a￿aS where the financial statements were most susceptible to material misstatement due to fraud. Audit procedures performed included butwere not limited to testing manual joumal entries and other adjustments and evaluating the business rationale in elation to signifi￿nt, unusu81 transactions and Iiansartions entered into outside thè norrnal coursè of businèss, challenging judgments and estimates, and perfoming substantive test of details overa sample of income streams. A fvrther des¢ription of our respon&bilities for the audit of the financial statements is1ocaled on the Financial Reporting Council's website at htt '.IlwMv.Irc.or .ukJauditorsres onsibilibes. This description foms part of our auditorfs report. Usè of our rèport This report Is made exclusively to the members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006, and to the charitable company's ￿$tee5. a5 body. in accordance wth section 4411llcl of the Charities and Trustee Investment (Scotlandl Act 2005 and regulatio 10 of the Charities Accounts (Scotlandl Regulations 2006 las amended). Our auditwork has been undertaken so that we might state to the members and the charitable company's trustees those matters we are required to state to them in an auditorfs report and for no other purpose. To the fvllest extent perrnitted by law. we do not ac￿p1 or assume responsibility to anyone other than the charitable company. its members as a body. and its trustees as a body, for our audit work. for Ihis report. or lor the opinions we have formed. KERRY GALLAGHER (Senior Statutory Auditor) For and on behalf of RSM UK Audit LLP. Statutory Auditor Chartered Accountants Hathell House 55-61 Victoria Street Bristol BS1 6AD Date 8 November 2021 RSM UK AUDIT LLP is eligible to act as an audrtor in terms ol section 1212 of the Companies Act 2006 HFMA ANNUAL REPORT 2020- 2021 30 Company Number: 5787972