**FRIENDS OF THE WILLIAM HARVEY HOSPITAL (A COMPANY LIMITED BY GUARANTEE)**
## **REPORT AND FINANCIAL STATEMENTS**
## **FOR THE YEAR ENDED 31 DECEMBER 2021**
**Registered Charity No: 1122585 Registered Company No: 06261808 (England and Wales)**
## **FRIENDS OF THE WILLIAM HARVEY HOSPITAL**
## **CONTENTS**
||**Page No**|
|---|---|
|Charity Reference and Administrative Details|1|
|Trustees' Annual Report|2 - 5|
|Independent Examination Report|6|
|Statement of Financial Activities (including Income and Expenditure Account)|7|
|Balance Sheet|8|
|Statement of Cash Flows|9|
|Notes to the Accounts|10 - 18|
|The following page does not form part of the statutory accounts||
|Detailed Income and Expenditure Account - Shop|19|
## **FRIENDS OF THE WILLIAM HARVEY HOSPITAL**
## **CHARITY REFERENCE AND ADMINISTRATIVE DETAILS**
|**Charity registration number**|1122585|||
|---|---|---|---|
|**Company registration number**|6261808|||
|**President**|Marion Dinwoodie|||
|**Chairman**|Mrs Susan Heritage|||
|**Treasurer**|Mrs Nicola Curd|||
|**Trustees**|Mrs Anna Bishop|||
||Mrs Louise Bowman|||
||Mrs Susan Heritage|||
||Mr John Kennedy|(Appointed|21 February 2022)|
||Mrs Valerie Kennedy|(Appointed|21 February 2022)|
||Mr Michael Lyons|||
||Ms Joy McCue|||
||Mrs Margaret Moore|||
||Mr Philip Sims|(Appointed|11 May 2022)|
||Mrs Christine Strange|(Appointed|14 September 2021 and resigned 21 February 2022)|
||Mr Bryan Strange|(Appointed|14 September 2021 and resigned 21 February 2022)|
|**Secretary**|Mrs Jill Barringer|||
|**Key Management Personnel**|Mrs Jill Barringer|||
||Mr Darren Sprules|||
|**Registered Office**|William Harvey Hospital|||
||Kennington Road|||
||Willesborough|||
||Ashford|||
||Kent|||
|**Independent Examiner**|M A Wilkes FCA|||
||Azets Audit Services|||
||Ashford Commercial Quarter|||
||1 Dover Place|||
||Ashford|||
||Kent|||
|**Bankers**|The Royal Bank of Scotland||Barclays Bank|
||17/25 New Rents||High Street|
||Ashford||Ashford|
||Kent||Kent|
||CafCash||Metro Bank|
||25 Kings Hill Avenue||72-76 High Street|
||Kings Hill||Bromley|
||West Malling||Kent|
||Kent|||
|**Solicitors**|Kingsfords|||
||2 Elwick Road|||
||Ashford|||
||Kent|||
1
## **FRIENDS OF THE WILLIAM HARVEY HOSPITAL**
## **TRUSTEES' ANNUAL REPORT** _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
The Trustees present their report and audited financial statements of the charity for the year ended 31 December 2021. The Trustees have adopted the provisions of the Statement of Recommended Practice (SORP) “Accounting and Reporting by Charities” (FRS 102) in preparing the annual report and financial statements of the charity.
The financial statements have been prepared in accordance with the accounting policies set out in the notes to the accounts and comply with the charity’s governing document, the Charities Act 2011 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 UK and Republic of Ireland published on 16 July 2014, as amended by Bulletin 1.
## **Objectives and activities**
The main objective of the charity is to relieve patients and former patients of the William Harvey Hospital and its associated hospitals and other invalids in the community who are sick, convalescent, disabled, infirm or in need of financial assistance, and, generally to support the charitable work of the hospital.
## **Public benefit statement**
Friends of the William Harvey Hospital meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.
The Trustees confirm that they have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing the Trust’s aims and objectives and in planning future activities.
## **Achievements and Performance**
The main objective of the charity is to raise funds to facilitate the donation of equipment to the hospital. The charity achieves this objective by operating a shop in the hospital, staffed by both volunteers and paid employees, which primarily sells goods to patients, visitors and hospital staff. It also undertakes fundraising activities. All profits from the hospital shop, donations, legacies, gift aid, investment income and fundraising activities provide our income.
The majority of funds are raised via the Friends' shop in the foyer of the hospital. The shop turnover has improved during 2021 as pandemic restrictions were lifted, but it has not yet returned to the successes seen before the pandemic. During the year £163,767 (2020: £111,268) was donated to the hospital as detailed in note 6.
Financial support from donations and legacies has decreased in 2021. During the year no legacies were received (2020:£16,575).
In December 2021 the charity wrapped hundreds of gifts for patients on the wards at Christmas.
As reported in the accounts, gifts to the hospital are accounted for when the charity has committed to the expenditure. On this basis gifts totalling £163,767 (2020: £111,268) have been recognised in the accounts. During the year, a review of outstanding equipment pledges was undertaken. This resulted in pledges totalling £19,619 (2020: £178,229) being cancelled, and therefore these funds are now available for future pledges. Commitments outstanding at the year end totalled £311,233 (2020: £295,416) and includes amounts recognised in previous years but not yet paid for.
The charity depends largely on unpaid volunteers for fundraising and for staffing the hospital shop. We would also like to acknowledge the contribution made by the paid staff in the office and shop for their dedicated service and for ensuring that we always present a professional image. We would like to thank them all for their hard work during this difficult year.
2
**FRIENDS OF THE WILLIAM HARVEY HOSPITAL**
## **TRUSTEES' ANNUAL REPORT** _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
## **Risk factors**
The Trustees have assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to them. The Trustees continue to review and monitor the systems for managing the major strategic, business and operational risks which the charity faces.
The principal risk to which the charity is exposed is the withdrawal of the space occupied by the Friends' shop in the foyer of the hospital. Should the space be withdrawn, the charity would need to increase the funds of the charity through alternative fundraising.
## **Financial review**
Income amounted to £671,761 (2020: £499,057), an increase of approximately £173,000. Expenditure amounted to £712,443 (2020: £537,562) an increase of approximately £175,000. This has resulted in a deficit for the year of £40,682 (2020: deficit of £38,505). During the year, the Trustees assessed that there was no change in the value of the investment property thereby remaining at a value of £485,000. As at 31 December 2021 total funds amounted to £874,623 (2020: £915,305).
## **Reserves policy**
It is the policy of the charity to maintain unrestricted funds, which are the free reserves of the charity to provide sufficient funds to meet future expenditure. There are no significant commitments to meet recurring donations with the majority of donations being one-off payments based on individual applications. The charity has unrestricted funds as at 31 December 2021 of £385,772 (2020: £423,133) to meet future expenditure of at least 3 months expenditure which would be in the region of £175,000 (2020: £134,000). The Trustees have achieved this target.
## **Investment policy**
Investment activities are managed in line with the requirements of the Trustee Act 2000. The Trustees, having regard to the liquidity requirements of operating the charity and to the reserves policy, have operated a policy of keeping available funds in interest bearing deposit accounts and seek to achieve a rate of deposit which matches or exceeds inflation as measured by the retail prices index. The charity also has an investment property which is currently leased to a tenant and a satisfactory rate of return is achieved.
## **Plans for the future**
The Trustees consider that the assets of the charity at 31 December 2021 are sufficient to meet future commitments and they maintain a reserve of funds to meet any eventuality likely to occur within the Friends of the William Harvey Hospital. The charity will continue to consider the requests for equipment by the hospital.
## **Going concern**
The Trustees have considered the impact of the Covid-19 outbreak. The majority of funds are raised via the Friends' shop in the foyer of the hospital. However, due to ongoing government guidance following the Covid 19 pandemic, the number of patients and visitors using the hospital during 2021 has not yet returned to pre-pandemic levels. The Trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future and are unaware of any material uncertainties facing the charity that could impact on this conclusion.
3
## **FRIENDS OF THE WILLIAM HARVEY HOSPITAL**
## **TRUSTEES' ANNUAL REPORT** _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
## **Structure, governance and management**
## **Trustees of the charity**
The directors of the charity are its Trustees for the purposes of charity law. The Trustees who have served during the year and since the year end were as follows:
Mrs Anna Bishop Mrs Louise Bowman Mrs Susan Heritage Mr John Kennedy (Appointed 21 February 2022) Mrs Valerie Kennedy (Appointed 21 February 2022) Mr Michael Lyons Ms Joy McCue Mrs Margaret Moore Mr Philip Sims (Appointed 11 May 2022) Mrs Christine Strange (Appointed 14 September 2021 and resigned 21 February 2022) Mr Bryan Strange (Appointed 14 September 2021 and resigned 21 February 2022)
Friends of the William Harvey Hospital was incorporated as a company limited by guarantee and not having a share capital under the Companies Act 1985 on 29 May 2007. Friends of the William Harvey Hospital is a registered charity, number 1122585 with effect from 4 February 2008 and is established under its Memorandum and Articles of Association dated 29 May 2007.
On 12 May 2016 a Special Resolution was passed to amend the Articles of Association, modifying the quorum of Trustees to be 3 Trustees (previously 6 Trustees). The Trustees must hold at least 4 meetings each year. Decisions are made by a simple majority of votes cast at a meeting. Except for the chairman of the meeting, who has a second or casting vote, every Trustee has one vote on each issue. At the meetings the Trustees are presented with a shopping list by hospital staff, from which the Trustees agree to purchase equipment for the hospital.
The charity has no share capital and the members of the board of Trustees have no interest in its surplus or assets and receive no remuneration. No Trustees have any contract or arrangement of a material nature with the charity during the period under review.
## **Appointment of Trustees**
Trustees are appointed at the Annual General Meeting and must consist of a minimum of 3 Trustees and not more than 24 individuals (unless otherwise determined by ordinary resolution).
## **Recruitment of Trustees**
Prospective Trustees are recommended by existing Trustees to join the board of Trustees or advertisements are placed in the local press.
## **Key management personnel**
The Trustees consider the Trustees, the treasurer and the senior management team comprise the key management personnel of the charity in charge of directing and controlling, running and operating the charity on a day to day basis. All Trustees give of their time freely and no Trustee received remuneration in the year. The Trustees approve the remuneration for the key management personnel following recommendations by the Remuneration Committee. The Remuneration Committee consists of the Chairman, Treasurer and one other Trustee.
4
## **FRIENDS OF THE WILLIAM HARVEY HOSPITAL**
## **TRUSTEES' ANNUAL REPORT** _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
## **Trustees' responsibilities**
The Trustees (who are also directors of the Friends of the William Harvey Hospital for the purposes of company law) are responsible for preparing the Trustees’ Annual Report and the 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 charity and of the incoming resources and application of resources, including the income and expenditure, of the charity for that period. In preparing these financial statements, the Trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP 2015 (FRS 102);
- make judgements and estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The Trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity 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 charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.
Susan Heritage (Sep 16, 2022 16:07 GMT+1)
By Order of the Board Date: 16 September 2022
Mrs Susan Heritage, Chairman
5
## **INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF FRIENDS OF THE WILLIAM HARVEY HOSPITAL**
I report to the trustees on my examination of the accounts of the company for the year ended 31 December 2021 as set out on pages 7 to 19.
## **Responsibilities and basis of report**
As the charity’s trustees of the company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 (‘the 2006 Act’).
Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity’s accounts as carried out under section 145 of the Charities Act 2011 (‘the 2011 Act’). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5) (b) of the 2011 Act.
## **Independent examiner's statement**
Since the company’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of ICAEW which is one of the listed bodies.
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:
1. accounting records were not kept in respect of the company as required by section 386 of the 2006 Act; or
2. the accounts do not accord with those records; or
3. the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a ‘true and fair view’ which is not a matter considered as part of an independent examination; or
4. the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities [applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)].
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
M A Wilkes FCA For and on behalf of Azets Audit Services Ashford Commercial Quarter 1 Dover Place Ashford Kent TN23 1PP
Date: 21 September 2022
6
## **FRIENDS OF THE WILLIAM HARVEY HOSPITAL**
## **STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING INCOME AND EXPENDITURE ACCOUNT)** _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
|**Note **
**Income from:**
Donations and legacies
**2**
Other trading activities
**3**
Investments
**4**
**Total income**
**Expenditure on:**
Raising funds
**5**
Charitable activities
**6**
**Total expenditure**
**Other recognised gains/(losses)**
**13**
**Total funds carried forward**
**Total funds brought forward**
**Net movement in funds**
**Reconciliation of funds:**
**Net movement in funds**
Gain/(Loss) on revaluation of investment
property|**2020**
**Unrestricted**
**Restricted**
**Total Unrestricted**
**Restricted**
**Total**
**Funds**
**Funds**
**Funds**
**Funds**
**£**
**£**
**£**
**£**
**£**
**£**
12,626
1,230
13,856
30,147
7,752
37,899
650,388
-
650,388
453,142
-
453,142
7,517
-
7,517
8,016
-
8,016
**2021**|
|---|---|
||670,531
1,230
671,761
491,305
7,752
499,057|
||548,676
-
548,676
426,294
-
426,294
159,216
4,551
163,767
109,016
2,252
111,268|
||707,892
4,551
712,443
535,310
2,252
537,562|
||(37,361)
(3,321)
(40,682)
(44,005)
5,500
(38,505)
-
-
-
85,000
-
85,000|
||(37,361)
(3,321)
(40,682)
40,995
5,500
46,495
908,133
7,172
915,305
867,138
1,672
868,810|
||870,772
3,851
874,623
908,133
7,172
915,305|
All transactions are derived from continuing activities.
All recognised gains and losses are included in the Statement of Financial Activities.
7
## **FRIENDS OF THE WILLIAM HARVEY HOSPITAL**
## **BALANCE SHEET** _**AS AT 31 DECEMBER 2021**_
|**Note**
**Fixed assets:**
Tangible assets
**12**
Investment property
**13**
**Current assets:**
Stocks
**14**
Debtors
**15**
Cash at bank and in hand
**Liabilities:**
Creditors falling due within one year
**16**
**Net current assets**
**NET ASSETS**
**The funds of the charity:**
Restricted funds
**17**
Unrestricted Funds
**17**
Designated funds
**17**
**TOTAL FUNDS**
**18**|**£**
**£**
5,043
485,000
490,043
23,141
13,426
699,712
736,279
(351,699)
384,580
874,623
3,851
385,772
485,000
874,623
**2021**|**£**
**£**
6,067
485,000
491,067
19,101
13,111
716,653
748,865
(324,627)
424,238
915,305
7,172
423,133
485,000
915,305
**2020**|**£**
**£**
6,067
485,000
491,067
19,101
13,111
716,653
748,865
(324,627)
424,238
915,305
7,172
423,133
485,000
915,305
**2020**|
|---|---|---|---|
|||||
||||915,305|
||||7,172
423,133
485,000|
||||915,305|
The directors are satisfied that the company is entitled to exemption from the requirement to obtain an audit under section 477 of the Companies Act 2006.
The members have not required the company to obtain an audit in accordance with section 476 of the Act. The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of accounts.
The accounts have been prepared and delivered in accordance with the special provisions applicable to companies subject to the small companies regime.
The financial statements were approved and authorised for issue by the Board of Trustees on 16 September 2022 and signed on its behalf by:
Susan Heritage (Sep 16, 2022 16:07 GMT+1)
Mrs Susan Heritage **Chairman**
**The notes on pages 10 to 18 form part of these financial statements**
**Company Number: 06261808**
8
## **FRIENDS OF THE WILLIAM HARVEY HOSPITAL**
## **STATEMENT OF CASH FLOWS** _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
|**Note**
**Net cash flow from operating activities**
**19**
**Cash flow from investing activities**
Payments to acquire tangible fixed assets
Interest received
Rents received from investment properties
**Net cash flow from investing activities**
**Cash and cash equivalents at 1 January 2021**
**Cash and cash equivalents at 31 December 2021**
**Net decrease in cash and cash equivalents**|**2021**
**£**
(23,774)
(684)
77
7,440
6,833
(16,941)
716,653
699,712|**2020**
**£**
(73,020)
(2,534)
576
7,440|
|---|---|---|
|||5,482|
|||(67,538)
784,191|
|||716,653|
9
**FRIENDS OF THE WILLIAM HARVEY HOSPITAL**
## **NOTES TO THE ACCOUNTS** _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
## **1 Accounting policies**
## **1.1 Basis of accounting**
Friends of the William Harvey Hospital is a registered charitable company in the United Kingdom. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity. The address of the registered office is given in the charity information on page 1 of these financial statements. The nature of the charity’s operations and principal activities is to relieve patients and former patients of the William Harvey Hospital and its associated hospitals and other invalids in the community who are sick, convalescent, disabled, infirm or in need of financial assistance, and, generally to support the charitable work of the hospital.
The charity constitutes a public benefit entity as defined by FRS 102. 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 notes to these accounts. The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued on 16 July 2014 as amended by Bulletin 1 and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011.
The financial statements are prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. The financial statements are prepared in sterling which is the functional currency of the charity.
The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.
## **1.2 Income recognition**
All income is included in the Statement of Financial Activities (SoFA) when the charity is legally entitled to the income after any performance conditions have been met, the amount can be measured reliably and it is probable that the income will be received.
For donations to be recognised the charity will have been notified of the amounts and the settlement date in writing. If there are conditions attached to the donation and this requires a level of performance before entitlement can be obtained then income is deferred until those conditions are fully met or the fulfilment of those conditions is within the control of the charity and it is probable that they will be fulfilled.
No amount is included in the financial statements for volunteer time in line with the SORP (FRS 102). Further detail is given in the Trustees’ Annual Report.
Income from trading activities includes income earned from fundraising events and trading activities to raise funds for the charity. Income is received in exchange for supplying goods and services in order to raise funds and is recognised when entitlement has occurred.
Investment income is earned through holding assets for investment purposes such as cash deposits and property. It includes interest and rent. Interest income is recognised using the effective interest method and rent income is recognised as the charity’s right to receive payment is established.
## **1.3 Expenditure recognition**
All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably. It is categorised under the following headings:
- Costs of raising funds comprise the costs of running the hospital shop, fundraising expenses and the investment property costs, together with the associated support costs.
- Expenditure on charitable activities comprises those costs incurred by the charity in the delivery of its activities and services for beneficiaries. It includes both costs allocated directly to such activities and those costs of an indirect nature necessary to support them. The charitable company makes charitable donations in the form of the purchases of specific items of equipment for the William Harvey Hospital. The cost of these donations is taken to the Statement of Financial Activities when the purchase of the equipment has been authorised by the trustees.
10
**FRIENDS OF THE WILLIAM HARVEY HOSPITAL**
## **NOTES TO THE ACCOUNTS** _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
## **1 Accounting policies (continued)**
## **1.4 Support costs**
Support costs are those that assist the work of the charity but do not directly represent charitable activities and include office costs, governance costs, administrative payroll costs. They are incurred directly in support of expenditure on the objects of the charity.
The bases on which support costs have been allocated and the analysis of these costs is included in note 7.
## **1.5 Funds**
Unrestricted general funds are funds which can be used in accordance with the charitable objects at the discretion of the trustees.
Designated funds represent unrestricted funds that have been set aside by the trustees for particular purposes. The designated fund balance has been represented to ensure that the fund balance accurately reflects the designation policy adopted by the trustees.
Restricted funds are funds that can only be used for particular restricted purposes within the objects of the charitable company. Restriction arises when specified by the donor or when funds are raised for particular restricted purposes.
## **1.6 Tangible fixed assets and depreciation**
Tangible fixed assets are stated at cost (or deemed cost) or valuation less accumulated depreciation and accumulated impairment losses. Fixed assets below £200 are not capitalised. Depreciation is provided on all tangible fixed assets, at rates calculated to write off the cost less estimated residual value, of each asset on a systematic basis over its expected useful life, as follows:
Fixtures and fittings 25% reducing balance Shop fixtures 25% reducing balance Computer equipment 25% reducing balance
## **Impairment**
Assets not measured at fair value are reviewed for any indication that the asset may be impaired at each balance sheet date. If such indication exists, the recoverable amount of the asset, or the asset’s cash generating unit, is estimated and compared to the carrying amount. Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised in profit or loss unless the asset is carried at a revalued amount where the impairment loss is a revaluation decrease.
## **1.7 Investment property**
Investment properties for which fair value can be measured reliably without undue cost or effort are measured at fair value at each reporting date with changes in fair value recognised in ‘net gains / (losses) on investments’ in the SoFA.
Investment properties are not depreciated in accordance with FRS 102, which is a departure from the requirements of the Companies Act 2006. In accordance with FRS 102, the following disclosures are made in this respect;
a) The trustees have concluded that the financial statements present fairly the entity's financial position, financial performance and cashflows;
b) the charity has complied with applicable legislation, except that it has departed from a particular requirement of applicable legislation to achieve a fair presentation;
c) if the investment property had been depreciated, net assets would have reduced by £6,400.
d) the investment property was revalued using an online valuation guide as at 31 December 2021.
## **1.8 Stocks**
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing stock to its present location and condition. Cost is calculated using the first-in, first-out formula. Provision is made for damaged, obsolete and slow-moving stock where appropriate.
## **1.9 Debtors and creditors receivable / payable within one year**
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in expenditure.
11
**FRIENDS OF THE WILLIAM HARVEY HOSPITAL**
## **NOTES TO THE ACCOUNTS** _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
## **1 Accounting policies (continued)**
## **1.10 Tax**
The charity is an exempt charity within the meaning of schedule 3 of the Charities Act 2011 and is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes.
## **1.11 Going concern**
The financial statements have been prepared on a going concern basis as the trustees believe that no material uncertainties exist. The trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure is sufficient with the level of reserves for the charity to be able to continue as a going concern. The trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future and are unaware of any material uncertainties facing the charity that could impact on this conclusion.
## **1.12 Judgements and key sources of estimation uncertain**
Accounting estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
- i. **Useful economic lives of tangible assets**
The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are reassessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See note 12 for the carrying amount of the property plant and equipment, and note 1.6 for the useful economic lives for each class of assets.
## **1.13 Financial instruments**
The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.
|**2**
Members subscriptions
Income tax reclaimable
Donations and legacies
**Income from donations**|**2021**
**2020**
**£**
**£**
12,012
34,620
971
2,281
873
998|
|---|---|
||13,856
37,899|
The charity benefits greatly from the involvement and enthusiastic support of its volunteers, details of which are given in our annual report. In accordance with FRS 102 and the Charities SORP (FRS 102), the economic contribution of general volunteers is not recognised in the accounts.
|**3**
**4**
Rental income
Interest - deposits
Shop sales
Victoria Park Fayre
**Income from other trading activities**
**Income from investments**|**2021**
**2020**
**£**
**£**
650,123
453,142
265
-|
|---|---|
||650,388
453,142|
||**2021**
**2020**
**£**
**£**
7,440
7,440
77
576|
||7,517
8,016|
12
**FRIENDS OF THE WILLIAM HARVEY HOSPITAL**
## **NOTES TO THE ACCOUNTS** _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
|**5**
**Expenditure on raising funds**
**2021**
**2020**
**Direct costs**
**Support**
**Costs**
**Total**
**Total**
**£**
**£**
**£**
**£**
Shop expenses
414,079
112,994
527,073
405,165
Other fundraising expenses
140
21,035
21,175
20,776
Investment property costs
-
428
428
353
414,219
134,457
548,676
426,294
**6**
**Expenditure on charitable activities**
**2021**
**2020**
**Total**
**Total**
**£**
**£**
**Unrestricted expenditure**
Diagnostic Ultrasound for Paediatric Cardiology Service
69,815
-
CCU Portable Echocardiogram
33,350
-
Thoracic Ultrasound for Respiratory
23,000
-
MRI Capsule
14,917
-
Ready Bed sleeper chairs x 10
11,100
-
Latera Acute Nursing Bed x 2
4,000
-
Bilisoft 2.0 Phototherapy Units x 2
3,399
-
Felgains Raizer II Emergency Lifting Chair and trolley
3,369
-
MaviLED Phototherapy Units x 2
3,011
-
Sara Stedy x 4
2,733
-
Interactive whiteboard
1,876
-
Haemoglobin Monitoring Machine
1,739
-
Gym Equipment - Therapies
1,191
-
Sonosite PX Ultrasound (Diagnostic)
-
37,800
Sonosite Ultrasound x 2
-
36,200
Theatre staff room and showers
-
30,000
Automation & Artificial Intelligence for Rapid Sepsis ID and Treatment
-
25,184
EEG for ICU
-
22,450
Sonosite Ultrasound
-
19,000
3D printer & handheld scanner for head & neck cancer patients
-
18,455
Peri-operative Nerve Monitoring
-
14,349
Baby warmer for emergency department - Paediatrics
-
14,000
Reclining chairs for Surgical Emergency Admissions Unit (SEAU) x 5
-
11,103
Charge Box for charging mobiles and devices in A&E
-
9,920
Phlebotomy chairs
-
8,369
Stryker Rough Terrain Stretcher for Resus Team
-
8,286
Bodyguard Pain Pump Kit x 4
-
6,574
Covid-19 contribution
-
5,000
Discharge Lounge - Rise/Recliner chairs x 4
-
4,554
KwickScreens x 2 - Cardiology
-
2,895
Croyde Suturing Couch
-
2,865
Sofa and chairs x 2
-
1,725
Seating at Cambridge Crossroads
-
1,000
Christmas presents for wards
2,224
2,153
Other items less than £1,000
3,111
5,364
178,835
287,245
(19,619)
(178,229)
159,216
109,016
**Restricted expenditure**
Sonosite Ultrasound contribution
3,600
-
Other items less than £1,000
951
2,252
163,767
111,268
Old pledges written off and adjustments to pledges from previous years|**2021**
**2020**
**Direct costs**
**Support**
**Costs**
**Total**
**Total**
**£**
**£**
**£**
**£**
414,079
112,994
527,073
405,165
140
21,035
21,175
20,776
-
428
428
353|**2021**
**2020**
**Direct costs**
**Support**
**Costs**
**Total**
**Total**
**£**
**£**
**£**
**£**
414,079
112,994
527,073
405,165
140
21,035
21,175
20,776
-
428
428
353|
|---|---|---|
||414,219
134,457|548,676
426,294|
|||**2021**
**2020**
**Total**
**Total**
**£**
**£**
69,815
-
33,350
-
23,000
-
14,917
-
11,100
-
4,000
-
3,399
-
3,369
-
3,011
-
2,733
-
1,876
-
1,739
-
1,191
-
-
37,800
-
36,200
-
30,000
-
25,184
-
22,450
-
19,000
-
18,455
-
14,349
-
14,000
-
11,103
-
9,920
-
8,369
-
8,286
-
6,574
-
5,000
-
4,554
-
2,895
-
2,865
-
1,725
-
1,000
2,224
2,153
3,111
5,364|
|||178,835
287,245
(19,619)
(178,229)|
|||159,216
109,016
3,600
-
951
2,252|
|||163,767
111,268|
13
**FRIENDS OF THE WILLIAM HARVEY HOSPITAL**
## **NOTES TO THE ACCOUNTS** _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
## **7 Allocation of governance and support costs**
The charity initially identifies the costs of its support functions. It then identifies those costs which relate to the governance function. Having identified its governance costs, the remaining support costs together with the governance costs are apportioned between the charitable activities undertaken and the raising of funds in the year. The support costs below are directly attributable to the various raising funds activities. Governance costs are allocated pro-rata to income.
|Staff costs
Training
Rates
Insurance
Repairs and maintenance
Printing, postage and telephone
Marketing
Internet
Book-keeping
Computer expenses
Bank charges and interest
Debit/credit card charges
Sundry expenses
Travel
Depreciation
Loss on disposal of assets
Governance costs (Note 8)
**8**
**Governance costs**
Audit fee
Independent examiner's fee
Accountancy
**9**
**Grant commitments**
As at 1 January 2021
New commitments
Paid in year
Old pledges written off
As at 31 December 2021|**Shop**
**expenses**
**Other**
**fundraising**
**expenses**
**Investment**
**property**
**costs**
**2021**
**Total**
**2020**
**Total**
**£**
**£**
**£**
**£**
**£**
79,173
18,612
-
97,785
94,358
-
-
-
-
40
341
-
-
341
331
224
-
302
526
1,408
3,088
-
70
3,158
3,577
-
1,252
-
1,252
1,125
-
-
-
-
88
110
-
-
110
322
9,422
-
-
9,422
8,295
496
-
-
496
128
1,024
-
-
1,024
939
12,340
-
-
12,340
7,272
84
965
-
1,049
827
208
-
-
208
94
1,608
81
-
1,689
2,027
-
19
-
19
5
4,876
106
56
5,038
4,578
**Raising funds**|**Shop**
**expenses**
**Other**
**fundraising**
**expenses**
**Investment**
**property**
**costs**
**2021**
**Total**
**2020**
**Total**
**£**
**£**
**£**
**£**
**£**
79,173
18,612
-
97,785
94,358
-
-
-
-
40
341
-
-
341
331
224
-
302
526
1,408
3,088
-
70
3,158
3,577
-
1,252
-
1,252
1,125
-
-
-
-
88
110
-
-
110
322
9,422
-
-
9,422
8,295
496
-
-
496
128
1,024
-
-
1,024
939
12,340
-
-
12,340
7,272
84
965
-
1,049
827
208
-
-
208
94
1,608
81
-
1,689
2,027
-
19
-
19
5
4,876
106
56
5,038
4,578
**Raising funds**|
|---|---|---|
||112,994
21,035
428|134,457
125,414|
|||**2021**
**2020**
**£**
**£**
-
(80)
1,675
1,500
3,363
3,158|
|||5,038
4,578|
|||**2021**
**2020**
**£**
**£**
295,416
303,479
178,835
287,245
(143,399)
(117,079)
(19,619)
(178,229)|
|||311,233
295,416|
- **10 Staff costs and employee benefits**
The average number of employees during the year was 8 (2020: 10), all of which related to raising funds for the charity.
There are no employees with emoluments above £60,000 (2020: None).
|The total staff costs and employees benefit’s was as follows
Gross wages
Employer's National Insurance
Employer's pension contributions|**2021**
**2020**
**£**
**£**
92,153
92,051
4,430
1,115
1,202
1,192|
|---|---|
||97,785
94,358|
14
**FRIENDS OF THE WILLIAM HARVEY HOSPITAL**
## **NOTES TO THE ACCOUNTS** _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
## **11 Trustees' and key management personnel remuneration and expenses**
The trustees neither received nor waived any remuneration during the year (2020: £Nil).
The total amount of remuneration received by the two staff who are the key management personnel is £46,220 (2020: £47,608). The Trust considers its key management personnel compromise the shop manager and office secretary.
During the year, no trustees received reimbursement of expenditure incurred on behalf of the charitable company (2020: none).
|**12**
**Tangible Assets**
**Cost**
As at 1 January 2021
Additions
Disposals
At 31 December 2021
**Depreciation**
As at 1 January 2021
Charge for period
On disposals
At 31 December 2021
**Net book values**
At 31 December 2021
At 31 December 2020
**13**
**Investment property**
_Valuation_
As at 1 January 2021
Revaluation
At 31 December 2021
Historical cost|**Shop fixtures**
**and fittings**
**Office**
**fixtures and**
**fittings**
**Total**
**£**
**£**
**£**
32,780
542
33,322
684
-
684
-
(108)
(108)|**Shop fixtures**
**and fittings**
**Office**
**fixtures and**
**fittings**
**Total**
**£**
**£**
**£**
32,780
542
33,322
684
-
684
-
(108)
(108)|
|---|---|---|
||33,464
434
33,898||
||27,057
198
27,255
1,608
81
1,689
-
(89)
(89)||
||28,665
190|28,855|
||4,799
244|5,043|
||5,723
344|6,067|
|||**£**
485,000
-|
|||485,000|
|||25,000|
The investment property relates to 5 Meadway Drive, Addlestone. Rental income is received on this property at a market rate. The property is held at an open market value on the basis that it is a tenanted property During the year, the Trustees assessed that there was no change in the value of the investment property thereby remaining at a value of £485,000.
The property was bequeathed to the charity and cannot be disposed of until such time as the current tenant no longer requires the property.
|**14**
**Stocks**
Goods for resale
**15**
**Debtors**
Trade debtors
Income tax reclaimable
Other debtors
Prepayments and accrued income|**2021**
**2020**
**£**
**£**
23,141
19,101|
|---|---|
||23,141
19,101|
||**2021**
**2020**
**£**
**£**
10,224
9,886
871
860
1,631
2,030
700
335|
||13,426
13,111|
15
**FRIENDS OF THE WILLIAM HARVEY HOSPITAL**
## **NOTES TO THE ACCOUNTS** _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
|**16**
**Creditors: amounts falling due within one year**
Trade creditors
Grant commitments (Note 9)
Ward funds
Other taxes and social security
Accruals and deferred income
**17**
**Fund reconciliation**|**2021**
**2020**
**£**
**£**
33,634
23,612
311,233
295,416
2,249
2,249
858
-
3,725
3,350|
|---|---|
||351,699
324,627|
|||
**Unrestricted funds 2020**
|Unrestricted
Designated:
Revaluation reserve
Investment property
**Unrestricted funds 2021**
Unrestricted
Designated:
Revaluation reserve
Investment property|**As at 1**
**January**
**2020**
**Income**
**Expenditure**
**Transfers**
**As at 31**
**December**
**2020**
**£**
**£**
**£**
**£**
**£**
467,138
491,305
(535,310)
-
423,133
375,000
-
-
85,000
460,000
25,000
-
-
-
25,000|
|---|---|
||400,000
-
-
85,000
485,000|
||867,138
491,305
(535,310)
85,000
908,133|
||**As at 1**
**January**
**2021**
**Income**
**Expenditure**
**Transfers**
**As at 31**
**December**
**2021**
**£**
**£**
**£**
**£**
**£**
423,133
670,531
(707,892)
-
385,772
460,000
-
-
-
460,000
25,000
-
-
-
25,000|
||485,000
-
-
-
485,000|
||908,133
670,531
(707,892)
-
870,772|
16
**FRIENDS OF THE WILLIAM HARVEY HOSPITAL**
## **NOTES TO THE ACCOUNTS** _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
## **17 Fund reconciliation (continued)**
**Restricted funds 2020**
|CDU
Cardiology Department
Cambridge Ward
ITU
Kings C1
The Closet Project
EEG machine
Padua Ward
Portable ECG machine
Covid 19
Toiletries and underwear
Cambridge K Ward
ICU Garden
**Restricted funds 2021**
Celia Blakey
Cambridge J Ward
Kings D Staff
ITU
Kings C1
The Closet Project
EEG machine
Padua Ward
Portable ECG machine
Toiletries and underwear
Cambridge K Ward
ICU Garden|**As at 1**
**January**
**2020**
**Income**
**Expenditure**
**Transfers**
**As at 31**
**December**
**2020**
**£**
**£**
**£**
**£**
**£**
1,000
-
(1,000)
-
-
589
-
(589)
-
-
3
-
(3)
-
-
80
160
-
-
240
-
1,300
-
-
1,300
-
900
(400)
-
500
-
280
-
-
280
-
3,600
-
-
3,600
-
900
-
-
900
-
260
(260)
-
-
-
117
-
-
117
-
100
-
-
100
-
135
-
-
135|
|---|---|
||1,672
7,752
(2,252)
-
7,172|
||**As at 1**
**January**
**2021**
**Income**
**Expenditure**
**Transfers**
**As at 31**
**December**
**2021**
**£**
**£**
**£**
**£**
**£**
-
100
-
-
100
-
105
-
-
105
-
25
-
-
25
240
-
-
-
240
1,300
-
-
-
1,300
500
1,000
(682)
-
818
280
-
-
-
280
3,600
-
(3,600)
-
-
900
-
(269)
-
631
117
-
-
-
117
100
-
-
-
100
135
-
-
-
135|
||7,172
1,230
(4,551)
-
3,851|
**Fund descriptions (a) Unrestricted funds** This represents the general funds which can be used in accordance with the charitable objects at the discretion of the trustees.
## **(b) Designated funds**
Revaluation reserve
Investment property **(c) Restricted funds**
Designated funds represent unrestricted funds that have been set aside by the trustees for particular purposes.
This represents the unrealised gains on the investment property which are not considered to be free reserves.
This represents the original cost of the investment property.
Restricted funds are funds that can only be used for particular restricted purposes within the objects of the charitable company. Restriction arises when specified by the donor or when funds are raised for particular restricted purposes.
Frequently, the amount donated for a specific purpose exceeds the cost of the equipment purchased and a small balance remains in the restricted fund. The trustees actively seek to spend the remaining balance or contact the donor to ask permission to transfer the remaining balance into the general funds. On occasion, a balance can remain unspent for several years, after which the trustees approve the transfer to the general funds of the charity to further the objectives of the charity.
17
**FRIENDS OF THE WILLIAM HARVEY HOSPITAL**
## **NOTES TO THE ACCOUNTS** _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
## **18 Analysis of net assets between funds**
|**2020**
Unrestricted funds
Designated funds
Restricted funds
**2021**
Unrestricted funds
Designated funds
Restricted funds|**Tangible**
**Net current**
**2020**
**fixed assets**
**assets**
**Total**
**£**
**£**
**£**
6,067
417,066
423,133
485,000
-
485,000
-
7,172
7,172|
|---|---|
||491,067
424,238
915,305|
||**Tangible**
**Net current**
**2021**
**fixed assets**
**assets**
**Total**
**£**
**£**
**£**
5,043
380,729
385,772
485,000
-
485,000
-
3,851
3,851|
||490,043
384,580
874,623|
## **19 Reconciliation of net income / (expenditure) to net cash flow from operating activities**
|Net (expenditure)/income for the year
Rents received from investment properties
(Increase)/decrease in stock
Depreciation and impairment of tangible fixed assets
Interest receivable
Increase/(decrease) in creditors
Net cash flow from operating activities
Increase in debtors
Unrealised (gain)/loss on investment properties|**2021**
**2020**
**£**
**£**
(40,682)
46,495
(7,440)
(7,440)
(77)
(576)
1,689
2,027
-
(85,000)
(4,040)
4,831
(315)
(1,871)
27,072
(31,491)|
|---|---|
||(23,774)
(73,020)|
## **20 Related party transactions**
During the year the charitable company entered into no transactions with related parties or trustees (2020: None).
18