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2021-07-31-accounts

The Medical College of Saint Bartholomew’s Hospital Trust

Annual Report and Financial Statements

31 July 2021

Company Registration Number 05861679 (England and Wales) Charity Registration Number 1115519

Contents

Reports

Reports
Reference and administrative details of the
charitable company and its trustees and
advisors 1
Trustees’ report 3
Independent auditor’s report 12
Financial statements
Statement of financial activities 17
Balance sheet 19
Statement of cash flows 20
Principal accounting policies 21
Notes to the financial statements 25
The following page does not form
part of the statutory financial statements:
Detailed income and expenditure account 33

The Medical College of Saint Bartholomew's Hospital Trust

Reference and administrative details of the charitable company and its trustees

Trustees Prof J Anderson CBE
Mr M T Burnyeat
Mr A D Flower
Mr S Ghosh
Prof C J Hinds
Mr N Jones
Ms A Kenrick OBE
Prof A Lister
Dr V Muirhead
Dr P Lloyd
Mr S J Thorley QC
Ms C P Waugh
Secretary Mr J H Carleton
Address The Medical College of Saint Bartholomew’s
Hospital Trust
66 Lincoln’s Inn Fields
London
WC2A 3LH
Website www.barts-londonschooltrust.org.uk
Company registration number 05861679
Charity registration number 1115519
Auditor Buzzacott LLP
130 Wood Street
London
EC2V 6DL
Solicitors Farrer & Co LLP
66 Lincoln’s Inn Fields
London
WC2A 3LH

The Medical College of Saint Bartholomew's Hospital Trust 1

Reference and administrative details of the charitable company and its trustees

Investment managers Investec Wealth and Investment Limited 2 Gresham Street London EC2V 7QN Troy Asset Management Limited Brookfield House 44 Davies Street London W1K SJA Smith & Williamson 25 Moorgate London EC2R 6AY Bankers C Hoare and Co. 7 Fleet Street Temple London EC4P 4DQ

The Medical College of Saint Bartholomew's Hospital Trust 2

Trustees’ report 31 July 2021

The trustees present their report together with the financial statements of The Medical College of Saint Bartholomew’s Hospital Trust for the year ended 31 July 2021.

This report has been prepared in accordance with the Companies Act 2006 and Part 8 of the Charities Act 2011 and equates to a directors’ report for the purposes of company legislation.

The financial statements have been prepared in accordance with the accounting policies set out on pages 21 to 24 therein and comply with the charitable company’s Memorandum and Articles of Association, applicable laws and 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 United Kingdom and Republic of Ireland (FRS 102).

Structure, governance and management

Constitution

The Medical College of Saint Bartholomew’s Hospital Trust (the “Trust”) was incorporated on 26 June 2006 as a company limited by guarantee (Company No 05861679) and is also a registered charity (Charity Registration No 1115519). It commenced operations on 1 August 2006 following the transfer of the net assets and undertakings from the registered charity, The Medical College of St Bartholomew’s Hospital Trust, Charity Registration No 291885.

Organisation

The trustees meet at least four times a year and decisions are taken by consensus or, if need be, by a majority of votes.

Key management personnel

The trustees consider that they alone comprise the key management of the Trust and are in charge of directing and running the day to day operations of the Trust.

The Medical College of Saint Bartholomew's Hospital Trust 3

Trustees’ report 31 July 2021

Structure, governance and management (continued)

Trustees

The members of the Board of trustees constitute directors of the Trust for the purposes of the Companies Act 2006.

The following trustees were in office at the date of approval of these accounts and served throughout the year except where shown.

Trustees Appointed/retired
Prof J Anderson CBE
Mr M T Burnyeat
Dr P Fleming Resigned 25 October 2020
Mr A D Flower
Mr S Ghosh
Prof C J Hinds
Mr N Jones
Ms A Kenrick OBE
Prof A Lister
Dr P Lloyd
Dr V Muirhead Appointed 1 August 2021
Mr S J Thorley QC (Chair)
Prof E A O’Toole Resigned 30 June 2021
Ms C P Waugh

Under the Articles of Association, a trustee may be appointed or removed by resolution of the trustees.

Regard is had to the skills mix of the trustees to ensure that the Board of trustees has all the necessary skills required to contribute fully to the Trust’s development. For this purpose the Secretary maintains a list of the relevant skills such that any additional or replacement skills may be identified and sought when particular trustees retire.

No trustee(s) received any remuneration for services during the year (2020: none). £nil incidental expenses were reimbursed to trustees (2020: £nil). No trustee had any beneficial interest in any contract with the Trust during the year (2020: none).

Trustees meet at least four times a year and delegate where appropriate the day to day administrative work of the Trust to their professional advisers and occasional matters requiring decision between meetings to the Chairman or to a small group of trustees. In particular, the Grants Advisory Committee meets four times a year ahead of the main Trustee meetings and makes recommendations on grant applications to the Trustees. The Finance & Investment Committee meets at least twice a year to consider the Trust’s finances and take reports from the investment managers. The Nominations Committee meets on an ad hoc basis to deal with trustee recruitment.

The Medical College of Saint Bartholomew's Hospital Trust 4

Trustees’ report 31 July 2021

Structure, governance and management (continued)

Trustee induction and training

The trustees recognise that new trustees need to be aware of the Trust's charitable purposes, modus operandi, strategic plans and its role in supporting St Bartholomew's and The Royal London School of Medicine and Dentistry ("the School"). All new trustees are provided with a briefing by the Chairman or Secretariat, a copy of the Memorandum and Articles of Association, the latest annual report and financial statements, minutes of recent meetings of the trustees and details of the Trust's legal relationship with Queen Mary College (of which the School forms a part) as well as a briefing on the responsibility and duties of charity trustees. Trustees are kept informed of developments in the law and accounting practices by their professional advisers.

Statement of trustees’ responsibilities

The trustees (who are also directors of The Medical College of Saint Bartholomew’s Hospital Trust for the purposes of company law) are responsible for preparing the trustees’ report and financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the income and expenditure of the charitable company for that period.

In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Medical College of Saint Bartholomew's Hospital Trust 5

Trustees’ report 31 July 2021

Structure, governance and management (continued)

Statement of trustees’ responsibilities (continued)

Each of the trustees confirms that:

This confirmation is given and should be interpreted in accordance with the provisions of s418 of the Companies Act 2006.

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

Connected charities

The Queen Mary and Westfield College Private Bill received Royal Assent and was enacted on 8 November 1995. The Act gave effect to the merger between Medical College of Saint Bartholomew’s Hospital, Queen Mary and Westfield College and the London Hospital Medical College to form The Barts and the London School of Medicine and Dentistry ("the School") at Queen Mary and Westfield College. From this date the freehold of Charterhouse Square was transferred to the Trust by way of a transfer from The Medical College of Saint Bartholomew’s Hospital, an exempt charity for the purposes of the Charities Act 2011. In 2013 the College changed its legal name to Queen Mary University of London.

In furtherance of the Trust's charitable objects the trustees permit much of the Charterhouse Square site to be occupied by the College for the benefit of the School under a 25 year leasehold from 1 September 2008 at a peppercorn rent. The College is an exempt charity for the purposes of the Charities Act 2011.

Risk management

The trustees believe that by monitoring reserve levels, by ensuring controls exist over key financial systems, and by examining the operational and business risks faced by the Trust, they have established effective systems to mitigate the major risks to which it is exposed, in particular, those relating to finance, investments, grant making and the development of Charterhouse Square.

The Medical College of Saint Bartholomew's Hospital Trust 6

Trustees’ report 31 July 2021

Structure, governance and management (continued)

Risk management (continued)

The Trustees maintain a risk register which sets out all the key risks facing the Trust and the measures put in place to monitor, manage and mitigate these risks. This risk register is reviewed and updated at least annually. The Trustees meet quarterly to review grant applications and deal with the business of the Trust and these meetings provide a regular forum for Trustees to discuss and take action in relation to any risks as they deem necessary. The key strategic risk currently facing the Trust is that in the event of a serious reversal in stock markets, the Trust’s investments could suffer both in capital value and income generation, which in turn would reduce the Trust’s grant giving potential. However, the Trustees mitigate this risk by ensuring the diversification of the Trust’s investments across a range of different asset classes and geographies, using three different investment managers, and the Finance and Investment Committee regularly reviews the performance of the investment portfolios. The impact of COVID-19 on the financial markets and the Trust’s investments has been closely monitored by the Trust’s Finance & Investment Committee throughout the year. The Committee can make decisions quickly as required and advise the Grants Committee and Trustees generally on the impact (if any) on the Trust’s grant-making capacity. Given the long-term nature of the Trust’s freehold interest in the land at Charterhouse Square, the Trustees feel that any diminution of value of that interest due to COVID-19 will be temporary.

Objectives, activities and policies

Objectives

When setting the objectives and planning the work of the Trust for the year the trustees have given careful consideration to the Charity Commission’s general guidance on public benefit.

The purposes of the Trust are to promote all aspects of medical and dental education at the School and to provide opportunities for research in, and the advancement of, medical and dental knowledge. The public benefit therefore consists of the assistance given to the College in training doctors and dentists, and in supporting research in medicine and dentistry, and thereby in the service given during their careers by doctors and dentists and in the advancement of medical and dental science.

Activities

The Trust is the legal owner of land and property north of Charterhouse Square ("the Charterhouse Square site"). As stated above under “Connected Charities”, the Trust leases the majority of the Charterhouse Square site to the College at a peppercorn rent for the benefit of the School in furtherance of the above stated charitable purposes ("the College Lease").

The Trust makes grants to the College for the specific purposes of the School and its students and researchers. It is the intention of the trustees to continue to make significant grants in the future to the School for appropriate charitable purposes.

The Medical College of Saint Bartholomew's Hospital Trust

7

Trustees’ report 31 July 2021

Objectives, activities and policies (continued)

Activities (continued)

On 31 October 2017, the Trust approved a merger with the Professor Willoughby PhD Fund for Inflammatory Research (Registered Charity Number 142102) (“the Willoughby Trust”). The Willoughby Trust was established to fund PhD scholarships in inflammation research at the College. The majority of funds transferred to the Trust are already committed to current grants to support PhD students. See also note 9.

Grant-making policy

The Trust makes single and recurring grants to the College for the benefit of the School in furtherance of its charitable purposes. It also awards scholarships for undergraduate students (including intercalating students) and studentships for postgraduate researchers and supports a welfare fund for students run by the School, known as the Dean’s Benevolence Fund. The Trust also supports medical and dental research and the trustees work closely with the School in order to assess applications for funding to ensure that its funds are being used subject to the conditions of the grants (where such conditions are imposed).

The trustees also wish to maximise their assets to secure grant funding for the School in the longer term. The trustees have established a Grants Advisory Committee, whose purpose is to recommend to the trustees the allocation of seedcorn and other research funding to the School from time to time. The trustees would like to thank those members that have served on the Grants Advisory Committee during this period.

Achievements and performance

Grant making

The Trust has made a number of grants this year in support of research at the School, including three fully-funded clinical PhD Studentships (two medical and one dental), and continues to fund a number of other clinical PhD research projects. The Trust has also provided the first year of funding for a major grant of just under £2 million to fund the Chair for the School’s new Institute of Population and Health Sciences and ancillary posts. This is payable in instalments over five years. The Trust has also increased its support for undergraduate students at the School by providing six further scholarships over the next six years.

Fundraising

The Trust does not fundraise directly with individuals and therefore is not registered with the Fundraising Regulator. When donations from individuals are received the Trust aims to protect personal data and never sells data or swaps data with other organisations. The Trust manages its own fundraising activities. The Trust undertakes to react to and investigate any complaints regarding its fundraising activities and to learn from them and improve its service. During 2021, the Trust received no complaints about its fundraising activities.

The Medical College of Saint Bartholomew's Hospital Trust

8

Trustees’ report 31 July 2021

Achievements and performance (continued)

Investment policy

The Trust’s portfolio of listed investments had a market value as at 31 July 2021 of £26,931,165 (2020: £24,924,493) which together with cash held by the investment managers for reinvestment of £284,959 (2020: £281,549) gave a total of £27,216,124 (2020: £25,206,042).

There are no restrictions on the Trust’s power to invest in listed investments. However, the trustees have chosen not to invest directly in tobacco-related industries. The Trust has also moved its investments in the Trojan Fund and the Trojan Income Fund to the Trojan Ethical Fund and the Trojan Ethical Income Fund. The investment strategy is set by the trustees and is overseen by the Trust’s Finance and Investment Committee. The strategy takes into account income and capital growth requirements, the risk profile and the investment managers’ view of the market prospects in the medium term. The overall investment policy is to maximise total return through a diversified portfolio, aiming to provide a level in excess of inflation over a five year period as determined by the trustees.

The Finance and Investment Committee meets the investment managers at least every six months to review the performance of the portfolio and the investment strategy. The investment managers produce quarterly reports for the trustees.

Investec Wealth and Investment Limited, Troy Asset Management Limited and Smith & Williamson Limited manage the current portfolio on a discretionary basis. During the year gains of £2,906,274 (2020: losses of £1,088,211) were recognised. The trustees remain of the opinion that their investment policy is appropriate for the medium to long term.

The trustees would like to thank those members that have served on the Finance and Investment Committee during this period.

Financial review

Financial position

Total income for the year ended 31 July 2021 was £700,905 (2020: £748,809), comprising income from rent of £48,890 (2020: £70,380) and income from investments of £501,613 (2020: £674,547), donations of £150,402 (2020: £500), legacies receivable of £150,252 and other income of £nil (2020: £3,382).

Total expenditure of £2,486,851 (2020: £4,021,417) included depreciation, legal and professional fees and sundry expenses. In 2021 grants amounting to £1,524,309 were committed (2020: £3,256,757) with £25,439 of grants either no longer required or repaid (2020: £142,516), leading to an overall deficit before investment movements of £1,785,946 (2020: £3,272,608).

Taking into account investment gains of £2,906,274 (2020: losses of £1,088,211) the net income year was £1,785,946 (2020: net expenditure of £4,360,819).

The Medical College of Saint Bartholomew's Hospital Trust

9

Trustees’ report 31 July 2021

Financial review (continued)

Financial position (continued)

Total funds held by the Trust at 31 July 2021 were £74,171,490 (2020: £73,051,162). The Trust had net current liabilities of £986,874 at 31 July 2021 (2020: £1,246,158) and is able to draw down the investment portfolio of £26,931,165 (2020: £24,924,493) if required.

Reserves policy

The Trust’s policy is to fund diverse activities, some of which comprise short term projects whilst others comprise long term projects, requiring significant ongoing financial commitment and investment. The trustees also fund scholarships for undergraduates, research studentships for postgraduates, research fellowships for academics at a more advanced stage of their careers and subventions to student welfare, via the Dean’s Benevolence Fund. The trustees examined the requirement for free reserves, i.e those unrestricted funds not invested in tangible fixed assets, designated for specific purposes or otherwise committed.

The trustees anticipate continuing their programme of grants which will result in new commitments of at least £1m per annum. It is their policy to at least hold free reserves of this amount.

Funds

The balance sheet shows total funds of £74,171,490 (2020: £73,051,162) of which £245,081 (2020: £260,424) are restricted.

Unrestricted funds include the following Designated Funds:

The balance of funds comprises the General Fund which at 31 July 2021 amounted to £2,653,259 (2020: £844,218). The trustees are of the opinion that these are adequate but not excessive and are satisfied that the reserves remain appropriate to meet the objectives of the Trust.

An analysis of the movements on the funds is set out in notes 10, 11 and 12 to the financial statements.

The Medical College of Saint Bartholomew's Hospital Trust 10

Trustees, report 31 Juty 2021 Plans for lutur• ￿TiodS The Trust continues lo support edtjcation. research and c8pltal projects at the SGhool. One of the largest grants to be paid Olbl over the nexi four years will be to conts'nue funding the Chair for th8 Sch¢)ol's new Instllule of Populatlon and Health Sciences and ancillary posts. Supporting the SchcM)I vrrilh funding for PhD studenls and research will continue to be major focus for the Trust wth tsyo fvrthgr clinKal PhD Studontships to be funded for commencement In the 2022123 academlc year. Further lo this, in response lo the COV1[￿19 outbreak. the Tru81 continues to review 9ranl making activities to ensure wnlinued support to beneficiaii¢s. The Tru51 is monitoring the ongoing irnpact of the COVID-19 pandemic on programmes funded by current research gronls to determine rf support may be required in addition lo the COVID-19 funding provided in 2020121. The potential addilNMal ffinan¢ial needs of its research grant ipients has been costod into thg Tnjsfs futurg plans. The Trustees have reviewed Ihe risks that COVIO-19 poses lo Ihe Trugl and concluded that the Trust Is In a strong flnancial and operallonal p951Uon and can ￿n￿nue lo support the S¢hool now and for the f￿eeable fulure. rhg above report has been prepared in a￿Ord4Th¢e with the speclal provlslons of Part 15 of the Companies Act 2(￿ relating to small comp8nies. Signed on behalf ol the trustees.. Chair of trustees Doto of Approval-. ,/,/,. The Medical College of Saint Bartholomew's Hospital Trust 11

Independent auditors’ report 31 July 2021

Independent auditor’s report to the members of The Medical College of Saint Bartholomew’s Hospital Trust

Opinion

We have audited the financial statements of The Medical College of Saint Bartholomew’s Hospital Trust (the ‘charitable company’) for the year ended 31 July 2021 which comprise the statement of financial activities, the balance sheet, and statement of cash flows, the principal accounting policies and the notes to the financial statements. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

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

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

The Medical College of Saint Bartholomew's Hospital Trust 12

Independent auditors’ report 31 July 2021

Other information

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

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

The Medical College of Saint Bartholomew's Hospital Trust

13

Independent auditors’ report 31 July 2021

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

How the audit was considered capable of detecting irregularities including fraud

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

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Independent auditors’ report 31 July 2021

Auditor’s responsibilities for the audit of the financial statements (continued)

How the audit was considered capable of detecting irregularities including fraud (continued)

We assessed the susceptibility of the charitable company’s accounts to material misstatement, including obtaining an understanding of how fraud might occur, by:

To address the risk of fraud through management bias and override of controls, we:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the trustees and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

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Independent auditors’ report 31 July 2021

Use of our report

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Catherine Biscoe (Senior Statutory Auditor) For and on behalf of Buzzacott LLP, Statutory Auditor 130 Wood Street London EC2V 6DL

Date: 4 February 2022

The Medical College of Saint Bartholomew's Hospital Trust 16

Statement of financial activities Year to 31 July 2021

(incorporating an income and expenditure account)

Notes General
fund
£
Designated
funds
£		 Restricted
funds
£		 Total
funds
2021
£		 Total
funds
2020
£
Income from:
Donations
1
Investments
2
Charitable activities
. Rent
. Other income
Total income
Expenditure on:
Raising funds
. Investment management costs
. Exchange rate losses
Charitable activities
3
Total expenditure
Net (expenditure) before gains
(losses)
Net Gains (losses) on investments
6
Transfers between funds
10
Net income (expenditure) and net
movement in funds
Reconciliation of funds:
Fund balances brought forward
at 1 August 2020
Fund balances carried forward
at 31 July2021		 150,402
501,613
48,890
—
—

—

—

—
—

—

—

—		 150,402
501,613
48,890
—		 500
674,547
70,380
3,382
700,905
—
—		 700,905 748,809

89,753
3,730
1,704,655

—

—

673,370
—

—

15,343		 89,753
3,730
2,393,368		 89,119
—
3,932,298
1,798,138
673,370
15,343		 2,486,851 4,021,417

(1,097,233)

2,906,274
—

(673,370)


—

—
(15,343)

—

—		 (1,785,946)
2,906,274
—		 (3,272,608)
(1,088,211)
—

1,809,041

844,218

(673,370)

71,946,520
(15,343)

260,424		 1,120,328
73,051,162		 (4,360,819)
77,411,981

2,653,259
71,273,150
245,081		 74,171,490 73,051,162

All of the Trust’s activities derived from continuing operations during the above two financial periods.

There were no recognised gains or losses other than those shown in the Statement of Financial Activities for the above two financial periods.

The Medical College of Saint Bartholomew's Hospital Trust 17

Comparative statement of financial activities Year to 31 July 2020

(incorporating an income and expenditure account)

Notes General
fund
£
Designated
funds
£		 Restricted
funds
£
Total
funds
2020
£
Income from:
Donations
1
Investments
2
Charitable activities
. Rent
. Other income
Total income
Expenditure on:
Raising funds
. Investment management costs
Charitable activities
3
Total expenditure
Net (expenditure) income before (losses)
gains
Net (losses) gains on investments
10
Transfers between funds
Net (expenditure) income and net
movement in funds
Reconciliation of funds:
Fund balances brought forward
at 1 August 2019
Fund balances carried forward
at 31 July 2020		 500
674,547
70,380
3,382
—

—

—

—
—

—

—

—
500

674,547

70,380

3,382
748,809
—
—
748,809
89,119
3,344,036
—

673,370
—

(85,108)
89,119
3,932,298
3,433,155
673,370
(85,108)		 4,021,417
(2,684,346)
(1,088,211)
1,235,923
(673,370)

—

(1,235,984)
85,108

—
61
(3,272,608)

(1,088,211)

—
(2,536,634)
3,380,852
(1,909,354)

73,855,874
85,169

175,255
(4,360,819)

77,411,981
844,218
71,946,520
260,424
73,051,162

The Medical College of Saint Bartholomew's Hospital Trust 18

Balanca she•t 31 Jdy 2021 2021 2020 Flx•d a8s•ls Tang￿8 8ss81s Invastmants sI.273.150 51,946.520 21931.165 24,924,493 7.215 78211.530 78.871.013 Dèbtors 316,S90 284,959 917,478 1,S19027 189,242 281,549 327,722 796,513 Cash at b￿k Cr•dltor•: amount8 fallrvj thjg vAthln yeor 2,SO4901 2,044,871 Not ¢urr•nl Ilablllll•s 986M74 1.246,158 Total a•••ts l•M curv•nt IlabHIII•• Cr•dltorn: amcdjrts faling due after I1￿ cffjo y4or 77,224.856 75,624,855 9 {3.OS3,1661 12,573.6931 rot*l n•t ••••t• 74171A90 73,051,162 Th• funds ofth• ¢hrlty: RMM¢t•d fvnd• Rasiff￿ad fu 10 245.081 260,424 Unmtrlct•d fvnd . Do$h3not￿ fund8 . G￿er91 fund Totsl unrttsl￿ fvThJ8 11 71273.1SO 71,948,520 12 2,653,259 844,218 73.￿6.40# 72,790,738 Tot•1 fund• 74.171,49D 73.051,162 These accouTts have beon rmeparod in a¢￿d&n¢• bvith thg $poc?al prw$h)ns of Part 15 of the Companles Act 2006 relating to Small cc¥npan Approved by the trustees of Th8 Medilzl College of Saint Barlholcrfnew's Hospit81 Trust, Company Registration Number 05861679 (England and Wathl and signed on their behalf Chair of trustees Date of Approval: 221,I,. The Medical College of Saint Bartholomews Hospital Trust 19

Statement of cash flows 31 July 2021

Notes
2021
£		 2020
£
Cash flows from operating activities:
Net cash used in operating activities
A
Cash flows from investing activities:
Investment income
Proceeds from the disposal of investments

Purchase of investments

Net cash provided by investing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at 1 August 2020
Cash and cash equivalents at 31 July 2021
B
(808,049)		 (2,090,660)
501,613
12,767,902
(11,868,300)		 674,547
5,037,751
(4,541,601)
1,401,215 1,170,697
593,166
609,271		 (919,963)
1,529,234

1,202,437		 609,271

Notes to the statement of cash flows for the year ended 31 July 2021.

A Reconciliation of net movement in funds to net cash used in operating activities

2021
£		 2020
£
Net movement in funds (as per the statement of financial activities)
Adjustments for:
Depreciation charge
(Gains) Losses on investments
Investment income
Increase in programme related investments
Increase in debtors
Increase in creditors
Net cash used in operating activities
1,120,328
673,370
(2,906,274)
(501,613)
(7,215)
(127,348)
940,703		 (4,360,819)
673,370
1,088,211
(674,547)
—
(57,099)
1,240,224
(808,049) (2,090,660)

B Analysis of changes in net debt

Analysis of changes in net debt
As at 1
Aug 2020
£		 Movement
in year
£		 As at 31
July 2021
£
917,478
284,959
1,202,437
Cash at bank and in hand
Cash held by investment managers
Total cash and cash equivalents		 327,722
281,549		 589,756
3,410
609,271 593,166

The Medical College of Saint Bartholomew's Hospital Trust 20

Principal accounting policies 31 July 2021

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are laid out below.

Basis of preparation

These financial statements have been prepared for the year to 31 July 2021.

The financial statements have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant accounting policies below or the notes to these financial statements.

The financial statements have been prepared in accordance with 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 United Kingdom and Republic of Ireland (FRS 102) (Charities SORP FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.

The charity constitutes a public benefit entity as defined by FRS 102.

The financial statements are presented in sterling and are rounded to the nearest pound.

Critical accounting estimates and areas of judgement

Preparation of the financial statements requires the trustees to make significant judgements and estimates.

In the view of the trustees, no assumptions concerning the future or estimation uncertainty affecting assets or liabilities as the balance sheet date are likely to result in a material adjustment to their carrying amounts in the next financial year.

The items in the financial statements where these judgements and estimates have been made include:

Assessment of going concern

The trustees have assessed whether the use of the going concern assumption is appropriate in preparing these financial statements. The trustees have made this assessment in respect to a period of one year from the date of approval of these financial statements.

The Medical College of Saint Bartholomew's Hospital Trust 21

Principal accounting policies 31 July 2021

Assessment of going concern (continued)

The trustees of the charity have concluded that there are no material uncertainties related to events or conditions that may cast significant doubt on the ability of the charity to continue as a going concern. The trustees are of the opinion that the charity will have sufficient resources to meet its liabilities as they fall due. Despite the net current liabilities shown on the balance sheet, and the global uncertainty in relation to COVID-19, there are no concerns regarding the Trust’s ability to continue as a going concern.

Income recognition

With the exception of income from donations and gifts, all income is credited to the statement of financial activities on a receivable basis.

Any donations and gifts are credited to the statement of financial activities in the year in which they are received. Gifts are valued by the trustees on the basis of their worth to the Trust.

Rental income received in advance is carried forward under deferred income, as appropriate.

Expenditure recognition

Expenditure is charged to the statement of financial activities on an accruals basis and includes VAT which cannot be recovered.

Resources expended comprise the following:

Grants payable are included in the statement of financial activities when approved and when the intended recipient has either received the funds or been informed of the decision to make the grant and has satisfied all related conditions. Grants approved but not paid at the end of the financial year are accrued for. Grants where the beneficiary has not been informed or has to meet certain conditions before the grant is released are not accrued for but are noted as financial commitments in the notes to the financial statements. Costs also include depreciation, building repairs in support of charitable and operational work and related legal fees.

The Medical College of Saint Bartholomew's Hospital Trust 22

Principal accounting policies 31 July 2021

Freehold land and buildings

All freehold land and buildings are capitalised and are stated at valuation. It is the intention of the trustees to request a professional valuation at least every five years. In the intervening period the trustees will consider whether the valuation is still appropriate and, if necessary, make any required amendments to the valuation.

Depreciation is charged on freehold buildings at 2% on market value. No depreciation is provided on freehold land.

Freehold land and buildings represent properties which are leased at a peppercorn rent to the College. Such property is regarded as a tangible fixed asset. Buildings under construction will be depreciated from the date they are brought into use.

Other fixed asset investments

Listed investments are included in the balance sheet at their fair value at the end of the financial period. Realised and unrealised gains and losses are credited or debited to the statement of financial activities in the year in which they arise. Cash balances held by investment managers are classified as current assets.

Financial instruments

The charity only holds basic financial instruments as defined in FRS 102. The financial assets and financial liabilities of the charity and their measurement basis are as follows:

Financial assets – other debtors are basic financial instruments and are debt instruments measured at amortised cost. Listed investments are a basic financial instrument as detailed above. Prepayments are not financial instruments.

Cash at bank – classified as a basic financial instrument and is measured at face value.

Financial liabilities – accruals and other creditors are financial instruments, and are measured at amortised cost.

Fund accounting

Restricted funds comprise monies raised for, or their use restricted to a specific purpose, or conditions subject to donor imposed conditions.

The designated funds comprise those assets which may be used towards the charitable objects of the Trust but which have been set aside out of general funds and designated for specific purposes by the trustees.

The general fund comprises those monies which may be used towards meeting the charitable objects of the Trust at the discretion of the trustees.

Both the General Fund and Designated Funds are unrestricted.

Taxation

The Trust is a registered charity and therefore is not liable to direct taxation on income derived from its charitable objectives as it falls within the various exemptions available to registered charities. Any attributable VAT is accounted for within resources expended.

The Medical College of Saint Bartholomew's Hospital Trust

23

Principal accounting policies 31 July 2021

Programme related investments

Programme related investments consists of a concessionary loan issued by the charity to a beneficiary. This is initially recognised as the amount paid with the carrying amount adjusted to reflect repayments and any accrued interest. This is reviewed annually for any impairment and adjusted as necessary.

Debtors

Debtors are recognised at their settlement amount, less any provision for nonrecoverability. Prepayments are valued at the amount prepaid. They have been discounted to the present value of the future cash receipt where such discounting is material.

Cash at bank and in hand

Cash at bank and in hand represents such accounts and instruments that are available on demand or have a maturity of less than three months from the date of acquisition. Deposits for more than three months but less than one year have been disclosed as short term deposits. Cash placed on deposit for more than one year is disclosed as a fixed asset investment.

Creditors and provisions

Creditors and provisions are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Creditors and provisions are recognised at the amount the charity anticipates it will pay to settle the debt. They have been discounted to the present value of the future cash payment where such discounting is material.

The Medical College of Saint Bartholomew's Hospital Trust 24

Notes to the financial statements 31 July 2021

1 Income from donations

Income from donations
Total
unrestricted
funds
2021
£		 Total
unrestricted
funds
2020
£
Donations
Legacies receivable		 150
150,252		 500
—
150,402 500

2 Income from investments and interest receivable

Income from investments and interest receivable Income from investments and interest receivable
Total
unrestricted
funds
2021
£
Investment income from listed UK investments
501,613
501,613		 Total
unrestricted
funds
2020
£
Investment income from listed UK investments 501,613 674,547
501,613 674,547

The Medical College of Saint Bartholomew's Hospital Trust 25

Notes to the financial statements 31 July 2021

3 Expenditure on charitable activities

Expenditure on charitable activities
Total
funds
2021
£		 Total
funds
2020
£
Unrestricted funds
Grants awarded to individuals
. Undergraduate scholarships
. Postgraduate studentships
Undergraduate summer bursaries
Elective bursaries
Institute of Population and Health Science
Centre for the Cell
COVID Emergency Funding
QMUL Dean’s Benefit Fund
Conference bursaries
Intercalated bursaries
Unrestricted funds total
Restricted funds
Willoughby fund grants
Campbell-Saviours fund grants
Total grants awarded
Release of grants
. Unrestricted funds
. Willoughby fund
Repayment of unrestricted grants
Total grants released or repaid
Total grant expenditure
Unrestricted funds
Depreciation on freehold property
Legal and professional fees
Sundry expenses
Governance costs		 210,000
1,260,216
15,000
3,750
—
—
—
—
5,000
15,000		 240,000
743,482
15,000
3,750
1,938,888
150,000
50,000
50,000
5,000
15,000
1,508,966
15,343
—		 3,211,120
31,225
14,412
1,524,309
(25,439)
—
—		 3,256,757
(4,653)
(130,745)
(7,118)
(25,439) (142,516)
1,498,870
673,370
204,424
383
16,320		 3,114,241
673,370
128,547
300
15,840
2,393,367 3,932,298

During the year ended 31 July 2021, the Trust performed a review of all ongoing grants to ensure commitments awarded in previous years are fully captured within year end liabilities. Expenditure relating to undergraduate and postgraduate scholarships in the year ended 31 July 2021 includes amounts of £120,000 within undergraduate scholarships, and £76,666 within postgraduate scholarships in relation to such grants. No staff were employed by the Trust during the year ended 31 July 2021 (2020: none).

The trustees consider that they alone comprise the key management of the Trust and are in charge of directing and running the day to day operations of the Trust.

£nil remuneration was paid to the trustees (2020: £nil). Incidental expenses of £nil (2020: £nil) were reimbursed to no trustees (2020: none).

The Medical College of Saint Bartholomew's Hospital Trust 26

Notes to the financial statements 31 July 2021

4 Net expenditure before gains

This is stated after charging:

Net expenditure before gains
This is stated after charging:
2021
Total
funds
£		 2020
Total
funds
£
15,840
673,370
Auditor’s remuneration
. Statutory audit services
Depreciation		 16,320
673,370

5 Tangible fixed assets

Tangible fixed assets
Freehold
land and
buildings
£
Valuation (2016)
At 1 August 2020 and 1 August 2021
Depreciation
At 1 August 2020
Charge for year
At 31 July 2021
Net book value
At 31 July 2021
At 31 July2020		 54,640,000
2,693,480
673,370
3,366,850
51,273,150
51,946,520

The freehold buildings and certain land were subject to a revaluation at 31 July 2016 at £56,640,000 by Daniel Watney, Chartered Surveyors. This valuation was undertaken on a desktop basis.

Within the valuation of £54,640,000 shown above, the value attributed to land is £20,871,500 (2020: £20,971,500). No depreciation is provided on the freehold land.

The Medical College of Saint Bartholomew's Hospital Trust 27

Notes to the financial statements 31 July 2021

6 Investments

Investments
Listed investments 2021
£		 2020
£
Market value at 1 August 2020
Additions
Disposals at opening book value (proceeds: £12,767,902 realised gain:
£1,321,848)
Unrealised gains on revaluation
Market value at 31 July 2021
Cash held by UK investment managers for reinvestment
Cost of listed investments at 31 July2021		 24,924,493
11,868,300
(11,446,054)
1,584,426		 26,508,854
4,541,601
(5,298,711)
(827,251)
26,931,165 24,924,493
284,959
23,690,990		 281,549
25,206,042

Listed investments held at 31 July 2021 comprised the following:

Listed investments held at 31 July 2021 comprised the following:
2021
£		 2020
£
UK fixed interest
UK equities
Overseas fixed interest
Overseas equities
Common investment funds
Other		 1,841,686
5,142,455
353,093
6,037,671
11,975,270
1,580,990		 2,198,566
4,124,099
447,032
4,850,155
11,512,371
1,792,270
26,931,165 24,924,493

At 31 July 2021, the Trust owned the following investments, each of which represented a material holding relative to the market value of the total listed investments portfolio held at that date:

Holding Market
value of
holding
£		 % of total
portfolio
Trojan Ethical Income Fund (Investment Fund) - S Income
Trojan Global Income Fund - S Income
Trojan Ethical Fund - S Income		 2,788,361
2,300,295
6,306,751		 10%
9%
23%

The Medical College of Saint Bartholomew's Hospital Trust 28

Notes to the financial statements 31 July 2021

7 Programme related investments

Programme related investments
2021
£		 2020
£
Concessionary Loan 7,215 —
7,215 —

8 Debtors

Debtors
2021
£		 2020
£
Accrued income 316,590 189,242
316,590 189,242
9
10		 Creditors 2021
£		 2020
£
Grants payable (see below)
Right to light provision
Accruals and deferred income		 2,163,438
287,084
55,379		 1,734,593
287,084
22,994
2,505,901 2,044,671
2021
£		 2020
£
Grants payable at 1 August 2020
Grants paid during the year
Grants committed in the year (see note 3)
Grants released in the year
Grantspayable at 31 July2021		 4,308,286
(590,552)
1,524,309
(25,439)		 3,043,892
(1,856,965)
3,256,757
(135,398)
5,216,604 4,308,286
2021
£		 2020
£
Grants falling due within one year
Grants falling due after more than one year		 2,163,438
3,053,166		 1,734,593
2,573,693
5,216,604 4,308,286
Restricted funds
At
1 August
2020
£		 Income
£		 Expenditure
£

Transfer
£
—
—
At
31 July
2021
£
The Willoughby Trust 260,424 — (15,343) 245,081
260,424 — (15,343) 245,081

The Medical College of Saint Bartholomew's Hospital Trust 29

Notes to the financial statements 31 July 2021

10 Restricted funds (continued)

Restricted funds(continued)
At
1 August
2019
£
Income
£
Expenditure
£

Transfer £

61

—

61
At
31 July
2020
£
Division of Haemato-Oncology
The Willoughby Trust		 14,351
160,904
—

—
(14,412)

99,520
—

260,424
175,255
—
85,108
260,424

Division of Haemato-Oncology: Given as a legacy to the Trust from the Estate of the Late Cynthia Campbell-Savours for the funding of cancer related research at the Department of Oncology/Haematology and Endocrinology at St Bartholomew’s Hospital. Funds transferred from unrestricted funds to division of Haemato-Oncology to cover proportion of grants issued in 19/20.

Fund transferred from the Willoughby Trust are to be used for the establishment of PhD scholarships at Barts and the London School of Medicine and Dentistry or such other medical school which is conducting research in the processes involved in inflammation research.

11 Designated funds

The unrestricted funds of the Trust include the following designated funds which have been set aside out of unrestricted funds as they do not constitute free reserves available for working capital:

At
1 August
2020
£		 New /
(released)
designation
£
—
—		 Utilised
£		 At
31 July
2021
£
Building Fund
Investments Fund		 51,946,520
20,000,000		 (673,370)
—		 51,273,150
20,000,000
71,946,520 — (673,370) 71,273,150
At
1 August
2019
£		 New /
(released)
designation
£
—
(1,235,984)		 Utilised
£		 At
31 July
2020
£
Building Fund
Investments Fund		 52,619,890
21,235,984		 (673,370)
—		 51,946,520
20,000,000
73,855,874 (1,235,984) _(673,370) _ 71,946,520

The Building Fund represents the total net book value of the Trust’s freehold land and buildings, included within tangible fixed assets.

The Medical College of Saint Bartholomew's Hospital Trust 30

Notes to the financial statements 31 July 2021

11 Designated funds (continued)

The Investments Fund represents assets which are held primarily with a view to generating capital and income growth to fund the long term charitable activities of the Trust. The trustees keep the value of this designation under review to ensure that it represents the minimum value of investment holdings required for a sufficient yield to allow the charity to perform its charitable objectives. At 31 July 2021, this value was deemed to be £20,000,000.

12 General fund

General fund
£
At 1 August 2020
Net expenditure for the year
At 31 July2021		 844,218
1,809,041
2,653,259

13 Analysis of net assets between funds

Analysis of net assets between funds
General
fund
£		 Restricted
funds
£		 Designated
funds
£		 Total
2021
£
Fund balances at 31 July 2021
are represented by:
Tangible fixed assets
Fixed asset investments
Programme related investments
Net current liabilities
Creditors: falling due after one year
Total net assets		 —
6,931,165
7,215
(1,231,955)
(3,053,166)		 —
—
245,081
—		 51,273,150
20,000,000
—
—		 51,273,150
26,931,165
(986,874)
(3,053,166)
2,653,259 245,081 71,273,150 74,171,490
General
fund
£		 Restricted
funds
£		 Designated
funds
£		 Total
2020
£
Fund balances at 31 July 2020
are represented by:
Tangible fixed assets
Fixed asset investments
Net current liabilities
Creditors: falling due after one year
Total net assets		 —
4,924,493
(1,506,582)
(2,573,693)		 —
—
260,424
—		 51,946,520
20,000,000
—
—		 51,946,520
24,924,493
(1,246,158)
(2,573,693)
844,218 260,424 71,946,520 73,051,162

The Medical College of Saint Bartholomew's Hospital Trust 31

Notes to the financial statements 31 July 2021

13 Analysis of net assets between funds (continued)

The total unrealised gains at 31 July 2021 constitutes movement on revaluation and are as follows:

follows:
2021
£		 2020
£
Unrealised gains included above:
On tangible fixed assets
On investments
Reconciliation of movements on unrealised gains:
Unrealised gains at 1 August 2020
Less: depreciation in respect to revalued amounts
In respect to disposals in the year
Add: net gains arising on investment revaluations in the year
Total unrealisedgains at 31 July 2021		 29,566,520
3,240,175		 29,566,520
4,422,066
32,806,695 33,988,586
33,988,586
(673,370)
(3,414,795)
2,906,274		 35,615,831
(673,370)
134,366
(1,088,211)
32,806,695 33,988,586

14 Related Party Transactions

J Carleton, Secretary to the Trust, is also a partner in Farrer & Co LLP. Farrer & Co LLP provides legal and administrative support to the Trust. During the year £200,644 of fee expenditure has been recognised (2020: £120,000) relating to advice given in connection with the Trust’s properties and support with the management of correspondence with grant recipients and drafting of grant agreements. This includes £38,400 which relates to services provided in 19/20. Farrer & Co LLP also provide general charitable and property advice and administrative support to the Trust.

M Burnyeat is a Partner at Smith & Williamson. He is not involved in the day-to-day management and administration of the Trust’s Smith & Williamson portfolio.

The Medical College of Saint Bartholomew's Hospital Trust 32

Detailed income and expenditure account for the year ended 31 July 2021

This page does not form part of the statutory financial statements.

2021
£		 2021
£		 2020
£		 2020
£
Income
Securities and unit trusts
Rental income
. Telephone mast
. Charterhouse Square
. Queen Mary (Non SMD use)
Other income
Voluntary income
Legacies receivable
Expenditure
Investment managers’ fees
Exchange rate loss
Grants payable
Depreciation
Professional fees
Other expenses
Governance costs
. Audit and accountancy
Net expenditure before investment asset
movements and land and buildings
revaluation gains (losses)
Realised gains (losses) on listed
investments
Unrealised gains (losses) on listed
investments
Net movement in funds for theyear		 89,753
3,730
1,498,870
673,370
204,424
384
16,320		 501,613
14,583
33,500
807
—
150
150,252		 89,119
—
3,114,241
673,370
128,547
300
15,840		 674,547
25,000
33,500
11,880
3,382
500
—
700,905
2,486,851		 748,809
4,021,417
(1,785,946)
1,321,848
1,584,426		 (3,272,608)
(260,960)
(827,251)
1,121,328 (4,360,819)

The Medical College of Saint Bartholomew's Hospital Trust 33