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2022-12-31-accounts

Trustees’ annual report and accounts For the year ended 31 December 2022

June 2023

Trustees’ annual report and accounts for the year ended 31 December 2022

Contents

Message from the Chair and the Chief Executive 1
Our year in numbers 4
Objectives and activities 6
Achievements and performance 10
Plans for 2023 18
Our commitment to diversity and inclusion 23
Financial review 27
How the Fund is constituted and governed 32
Reference and administrative details 41
Statement of Trustees’ responsibilities 46
Auditor’s report and accounts 48
Independent Auditor’s Report to the Trustees
of The King’s Fund 49
Consolidated statement of fnancial activities 54
Balance sheets 55
Consolidated cashfow statement 56
Notes to the accounts 57

Contents

Trustees’ annual report and accounts for the year ended 31 December 2022

Message from the Chair and the Chief Executive

2022 has been a tough year for those that rely on health and care and also for those that work in it. Though the successive waves of the Omicron variants of Covid-19 have not been on the scale of 2020 and 2021, they have remained disruptive. Added to this, the realisation of the fragility of the NHS and its partners has only grown during the year and

industrial action (both inside and outside the NHS) has added to the sense of crisis. It came as little surprise that winter 2022–23 was exceptionally difficult.

Against this backdrop The King’s Fund has continued to make progress across its key priorities but also produced work designed to directly tackle the crisis. Under the Healthier places and communities programme, we have continued to work with integrated care systems and published on the early days of the new statutory structures brought in by the 2022 Health and Care Act. Given the complexity of the new structures and arrangements we have also produced a suite of publications designed to help people navigate the new health and care world, including a wholly new animation describing the reformed system . As part of this priority, we have also continued to support those looking to work with local people to empower their communities. For another of our priorities, Tackling the worst health outcomes, we updated our explainer content on health inequalities (the most popular content on our website) and shared major new research on partnership working between disabled people and people working in health and care . Under our Supporting people and leaders priority, we launched our second self-directed learning programme on leading for staff health and wellbeing as well as working with local stakeholders and continuing our successful open programmes. We also published our first output from Healthy Communities Together , our multi-year partnership with The National Lottery Community Fund.

Message from the Chair and the Chief Executive

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Trustees’ annual report and accounts for the year ended 31 December 2022

The first part of 2022 also involved work to support the passage of the Health and Care Act. This included extensive briefings, roundtables and work with partners such as NHS Confederation and NHS Providers. As part of our Foundations of health and care programme of work, we undertook specific work to support those working to address the current crisis in the health and care sector, including a report on strategies to reduce elective waiting times . In partnership with the Nuffield Trust, we published the results of the British Social Atti udes survey on public satisfaction with the NHS , which acted as a major wake-up call as to the depth of the current difficulties.

2022 saw us make much more intensive use of the venue, despite disruption, particularly from industrial action on public transport. We also limited the use of the venue and postponed conferences during the mourning period for Her Majesty Queen Elizabeth II. However, despite these shocks – and strongly supported by another year of very strong performance from the Leadership and Organisational Development team – the Fund did extremely well on income and managed its costs. This has enabled us to draw a firm line under the financial turbulence of 2020 and 2021 when finances were affected by Covid-19. 2022 was also a year of delivery on our diversity and inclusion agenda, including delivering anti-racism training for all staff and our first ever appearance in London Pride. Finally, we also marked a series of anniversaries this year: 25 years of the GSK IMPACT awards, 40 years of our Top Manager Programme, and 125 years of the Fund itself. All were marked by their own events.

We have a busy 2023 ahead of us, with plans to make progress on all our strategic priorities as well as to ensure we make a major contribution to tackling the current crisis in health and care. There will also be significant internal changes, as we develop a new website and begin refurbishing our Cavendish Square offices. As the current Chief Executive will retire later in 2023, Trustees will also be recruiting a successor.

A rigorous recruitment exercise during 2021 saw the appointment of five new Trustees; four were appointed at the end of 2021 and the fifth, Professor Kamila Hawthorne, took up her position in February 2022. During 2022, the Nominations Committee met to review the reappointment of Trustees coming to the end of their terms. Lord Kakkar was reappointed for a second three-year term as Chair from January 2023. Trustees approved the reappointment of Dominic Dodd (who chairs the Audit and Risk Committee) for a third and final three-year term from December 2022; Dr Jane Collins for a third term of two years from February 2023; Rt Hon Jacqui Smith for a third term of two years from February 2023; Professor Mark Britnell for a second three-year term from April 2023; and Professor Carolyn Wilkins for a second threeyear term from April 2023.

Message from the Chair and the Chief Executive

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Trustees’ annual report and accounts for the year ended 31 December 2022

Dame Ruth Carnall came to the end of her third and final term in April 2023, and Trustees are very grateful to her for serving as a Trustee for nine years, eight of them as Vice Chair. At a meeting held in March 2023, the Nominations Committee recommended the appointment of Dominic Dodd to take over as Vice Chair in April 2023, which Trustees approved.

We are also indebted to our non-trustee Committee members who serve on the Investment, and Facilities and Estates Committees. John McLaughlin, Ted Holmes, Anna Rule and Andy Doyle bring valuable expertise that has helped the Fund navigate a challenging external environment during the year. In March 2023, Sarah Fromson was appointed to the Investment Committee and brings an impressive amount of specialist strategic investment experience.

Lord Kakkar Chair

Richard Murray Chief Executive

Message from the Chair and the Chief Executive

3

Trustees’ annual report and accounts for the year ended 31 December 2022

Our year in numbers

Research and analysis: ideas and evidence

26 Publications

78 11 Blogs Podcast episodes

Research and analysis: independent challenge

11,620 Mentions in online media

703 55 Pieces of coverage Parliamentary in national, broadcast mentions and trade media

4

Trustees’ annual report and accounts for the year ended 31 December 2022

Bringing people together

35

Conferences and events

15,000 17

Event delegates

Corporate partners and supporters

Developing individuals, teams and organisations

50

520 10,000

Commissions Participants in Learners using to support open programmes our online courses organisations

Promoting understanding

110,800 2,328,000 163,000

Views of Website users Twitter followers ‘How does the NHS in England work?’

5

Trustees’ annual report and accounts for the year ended 31 December 2022

Objectives and activities

Our charitable objects, vision and values

The objects of The King’s Fund as set out in our Royal Charter are the promotion of health and the alleviation of sickness for the benefit of the public, by working with and for health care organisations, provided that such work will confer benefit, whether directly or indirectly, upon health care in London. Health care organisations means all those organisations involved in the commissioning, monitoring or supply and provision of health care.

Our vision is that the best possible health and care is available to all. We aim to be a catalyst for change and to inspire improvements in health and care by:

Objectives and activities

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Trustees’ annual report and accounts for the year ended 31 December 2022

Our values underpin the work we do.

----- Start of picture text -----
We will focus on making the greatest possible
We are committed
impact to achieve our vision of better health
to our purpose
and care for all, always contributing from a
and independence
position of independence.
We will be honest, bold and challenging,
We act with seeking diverse perspectives and
integrity experiences, engaging in constructive
dialogue and calling out injustice.
We will ensure that everyone feels
We are
respected, valued and supported, recognising
collaborative
that we will achieve more by working
and inclusive
together and collaborating with others.
We will celebrate success, value learning
We are positive
and promote positive cultures that support
and engaged
people to work at their best.
We will strive to produce work of the highest
We strive for
quality, continuously learning to improve
excellence
everything we do.
----- End of picture text -----

Objectives and activities

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Trustees’ annual report and accounts for the year ended 31 December 2022

Our 2020–24 strategic priorities

Our work spans the breadth of health and care policy and practice, giving us a unique understanding of the strategic context for health and care now and in the future. Within this, we focus our resources where we believe we can maximise our impact. Our current strategy identifies three strategic priorities that form the basis for our work programmes:

In addition to our three strategic priorities, our work on the foundations of health and care uses our knowledge of the health and care system and the relationships we hold to provide independent analysis, respond to key developments, and make sense of the complex and changing health and care landscape.

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Objectives and activities

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Trustees’ annual report and accounts for the year ended 31 December 2022

Our impact

It can be challenging for an organisation that is not directly involved in service delivery or policy-making to measure its impact. Nevertheless, we are committed to evaluating and reporting on our impact. We use several levers to bring about change.

In the next section, we outline our achievements during 2022 and how we have used these levers to deliver impact through our work.

Objectives and activities

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Trustees’ annual report and accounts for the year ended 31 December 2022

Achievements and performance

2022 has been a year of significant change and uncertainty in the external environment, both politically and economically. As health and care services started to exit the most acute period of the Covid-19 pandemic, the performance of the sector has rarely been out of the spotlight, with challenges in urgent and emergency care, primary care, social care, mental health and elective (planned) care.

Despite the challenges in the sector and more widely, The King’s Fund has continued to develop and have impact over the past year. The new digital learning offer on leading for staff health and wellbeing has been well received, our conferences and events continued to receive excellent feedback, and we engaged extensively with the Department of Health and Social Care, and with Parliament on influencing the content of the Health and Care Act 2022. 2022 was also a year of significant anniversaries at the Fund, marking 25 years of our GSK IMPACT awards, 40 years of the Top Manager Programme and 125 years of the Fund itself. We hosted Open Wounds in our building, an exhibition by Tottenham Rights on the links between slavery, institutional racism and health.

Healthier places and communities

Health and wellbeing are profoundly influenced by what happens in places and communities and by how the services operating in a place interconnect. Health and care organisations, local government and other local agencies need to work more closely together, co-ordinating the services they deliver to people. They also need to work in partnership with citizens and communities, and harness the vital contribution of the voluntary and community sector (VCS). These principles are at the heart of a population health approach, which aims to improve health outcomes, promote wellbeing and reduce health inequalities across local populations.

The King’s Fund has been at the forefront of developing integrated care, population health and place-based working, building the evidence base, influencing policy and supporting local implementation. We will build on this work, bringing together our unique combination of skills and expertise in policy and leadership development to shape healthier places and communities. We will help those working to improve health and wellbeing in the places in which they live and work by supporting them to collaborate across different organisations, and to draw on the diversity and strengths of their communities.

Achievements and performance

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Trustees’ annual report and accounts for the year ended 31 December 2022

Key objectives

The Healthier places and communities programme identified the following objectives for this strategy period:

A priority for the Healthier places and communities programme in 2022 was to influence the development of integrated care systems (ICSs) and other forms of partnership-working in health and care. Our work on this included:

Achievements and performance

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Trustees’ annual report and accounts for the year ended 31 December 2022

One of the key objectives of the Healthier places and communities programme is to support health and care organisations to work with local people in ways that empower communities – and to act on the insights they have to offer. In 2022 our work on this included:

Our work aims to support health and care organisations to understand how they can have a positive impact on population health. Our work on this in 2022 included:

Tackling the worst health outcomes

It is well known that some groups in the population have significantly poorer health outcomes and worse experiences of using health and care services than others. This is a longstanding injustice and one that has been brought to the fore by the Covid-19 pandemic, which had an impact on different groups in different ways with some groups experiencing much higher mortality rates than others. Within this context the health and care system is giving greater priority to tackling the worst health outcomes, with reducing health inequalities emerging as clear focus in recovery plans.

The overarching purpose of the Tackling the worst health outcomes programme is to work with people with lived experience, communities and services to improve health and care for people with the worst health outcomes.

Achievements and performance

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Trustees’ annual report and accounts for the year ended 31 December 2022

Key objectives

To deliver this purpose, the Tackling the worst health outcomes programme identified the following three objectives for this strategy period:

During 2022, we strengthened our role as a ‘go to’ source of information on health inequalities through our key data analyses and sensemaking. Our updated health inequalities explainer was the most viewed page on our website in 2022, and ‘health inequalities’ was consistently among the five most searched terms on our website.

In 2022 we made good progress in taking forward the recommendations of the 2021 review of the Tackling the worst outcomes programme. In March we published Equity and endurance , which shared lessons from previous initiatives to tackle health inequalities. We also began some work on the population groups identified following the review, including key research on partnership working between disabled people and people working in the heath and care system. Our Time for action on poverty conference in December, which links well with our ‘left behind neighbourhoods’ group, recorded the highest ‘net promoter score’ (the gold standard measure of customer experience) of any The King’s Fund event over the past year.

We continued our work with systems and organisations locally to support their efforts to tackle the worst health outcomes. Examples include work with One Bromley, supporting 14 organisations to develop their skills and approach to improving the health and wellbeing of their population, and work with NHS Midlands and 11 ICSs to develop an approach to tackling health inequalities across the East and West Midlands.

In 2022, Healthy Communities Together , our partnership with The National Lottery Community Fund entered its second phase. The programme supports partnership working in local areas between the VCS, the NHS and local authorities, and phase two is focused on implementing five partnerships’ plans for improving health and wellbeing, reducing inequalities and empowering communities. As well as bringing the sites together to share learning, we have begun sharing lessons from the programme more widely, including with the publication of A reflective learning framework for partnering in June.

Achievements and performance

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Trustees’ annual report and accounts for the year ended 31 December 2022

Supporting people and leaders

The workforce crisis in health and care poses the single greatest risk to access to and quality of care. The aim of this strategic priority is to create a healthier, more inclusive and effective workforce. Addressing staff shortages will require a transformation in the way care is delivered and the development of new roles and capabilities. It will also mean making health and care organisations better places to work, creating supportive, compassionate and inclusive cultures, and addressing the unacceptable levels of stress, bullying and discrimination that currently exist. We will work alongside health and care leaders to ensure there are enough people with the right skills to deliver high-quality, person-centred care, now and in the future.

Key objectives

To deliver this purpose, the Supporting people and leaders programme identified the following objectives for this strategy period:

In 2022, the focus on the needs of the workforce across health and care intensified. Staff retention and wellbeing remain top priorities for leaders in the health and social care system.

We continued to deliver much needed leadership and organisational development support to people and leaders, including in the VCS. Through our range of open programmes, client commissions and grant programmes, our skilled team continued to adapt support offers, providing psychologically safe spaces for leaders to meet and discuss the complex challenges and pressures they are experiencing.

Achievements and performance

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Trustees’ annual report and accounts for the year ended 31 December 2022

We celebrated three major milestones in 2022: the 25th anniversary of the GSK IMPACT awards, the 40th anniversary for our Top Manager Programme (TMP), which develops senior system leaders, and the redesign of our flagship women’s leadership programme, Circles , previously known as Athena.

We used the TMP 40th celebrations, with many of the extensive alumni, to launch the Open Wounds exhibition focusing on inclusion and anti-racism. The exhibition was developed and curated in partnership with Tottenham Rights, a community-led initiative that continues to address issues around social justice and accountability.

We continued to increase our reach to learners at different points in their careers through the launch of our second self-directed learning programme, Leading well for staff health and wellbeing in the NHS in October. By the end of 2022, we had reached more than 12,500 learners through our digital learning offers.

On national work, we continued to influence workforce and leadership policy and delivery through a series of professional networks, commissioned work, events and written outputs, including publishing a new explainer on compassionate leadership . We continued to collaborate with partners, including the Health Improvement Alliance Europe and the Five Nations networks. In partnership with Imperial Healthcare NHS Trust, we co-hosted a monthly conversation on kindness in health care with expert international health and care contributors.

Foundations of health and care

Our broad knowledge of the health and care system and the relationships we hold across the system form the foundation of our work. We know that our stakeholders and audiences highly value the work that we do to provide independent analysis, explain key issues and respond to developments across the breadth of health and care.

Our areas of focus include shaping and influencing the external debate on access to services; legislative reform of health and care; the funding envelope for the health and care system; and social care funding reform. We have maintained our high profile on these issues in 2022 through our responsive analysis, proactive reports and sensemaking content that helps our audiences understand the complexities of the health and care system.

Achievements and performance

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Trustees’ annual report and accounts for the year ended 31 December 2022

Key objectives

The purpose of our work programme on the Foundations of health and care is to:

2022 was a year of great volatility and uncertainty for the economy, the government, and the health and care system. In that context, The King’s Fund played an important role in helping people make sense of rapid changes to the health and care system, and we led debate on the threats and opportunities to the core building blocks that make for good health and care.

In the early part of the year, we worked to influence the shape of the Health and Care Act, which passed in to law in April 2022. The legislation created a new architecture for the health and care system and The King’s Fund provided strategic advice to ministers, national bodies and other stakeholders on the implications of the reforms. We also worked closely with parliamentarians to enhance measures in the Health and Care Bill to support better workforce planning, accountability and governance, and a greater focus on health inequalities, securing several amendments to the legislation. Once the Bill passed into law, we began publishing content to support the sector to understand the changes , including an extremely popular new animation explaining how the NHS in England works , which within six months of publication had amassed more than 100,000 views.

Throughout 2022, health and care services struggled to meet demand and many patients struggled to access the care they needed, leading to heightened debate about the future of the NHS. In March, The King’s Fund, jointly with the Nuffield Trust, brought clarity and evidence to the debate through our analysis of the British Social Atti udes survey . The results showed that, while satisfaction with the NHS had dropped to its lowest level in 25 years, public faith in the founding principles

Achievements and performance

16

Trustees’ annual report and accounts for the year ended 31 December 2022

of the health service remained strong. Throughout the year we continued to produce evidence and analysis to inform the increasingly heated debates about the future of health and care services, including through our well-received assessment of common myths about health and care in England .

Throughout 2022, we updated our popular explainer content on how the health and care system is organised; ran updated versions of our highly successful Health and care explained virtual conference and The NHS explained online course; and published our Social care 360 report on the key trends in the adult social care sector in England.

We ended 2022 with publication of a major new report assessing strategies to reduce waiting times for elective care . The agenda-setting research looked at past efforts to bring elective care backlogs under control and had impact at the highest level, with both the government and opposition citing the work at several sessions of Prime Ministers Questions towards the end of the year.

Internal change

2022 was the third year of our five-year strategy and of working through programme groups, which were set up to support the input of diverse views and insight to increase impact. We carried out a review of programme working to feed into our developing approach to understand the Fund’s impact. We continued to test and adopt new hybrid ways of working and will look to develop a digital vision around skills, tools and ways of working for the future. Diversity and inclusion continued to be a key focus during 2022 and the progress in this area is outlined below ( see page 23).

Achievements and performance

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Trustees’ annual report and accounts for the year ended 31 December 2022

Plans for 2023

The NHS, social care and public health are under extreme pressure, with performance against all the key measures far below expected standards. 2022 ended with the toughest winter in the health and care system’s history, with workforce shortages and performance challenges combining with a cost-of-living crisis driving increased demand for health and care services. 2023 will continue to be a challenging year for the health and care system and those working in it, as they look to support people using and accessing health and social care services.

This is combined with an unstable broader environment on politics, the economy and public spending. There are some significant milestones in the year ahead, with the 75th anniversaries of the creation of the NHS, the founding of the modern system of social care, and the arrival of Caribbean migrants aboard the Empire Windrush. In the political space, attention will turn more firmly to the development of party manifestos, creating a key opportunity to influence.

The external environment is significantly different to that we would have predicted when we wrote our strategy in 2019. But our priorities remain relevant and important for the system in this new context. Our approach for 2023 is to balance making progress with our longer-term strategic aims, adding value to a system under pressure, while meeting our income requirements and retaining flexibility to respond to a volatile and uncertain external environment.

Internally, we will continue to focus on strengthening our commitment to becoming a more diverse and inclusive organisation, adapting our ways of working in the postpandemic context and accelerating our use of digital technology.

In this section, we describe what our programmes aim to achieve in 2023.

Healthier places and communities

The purpose of our work on healthier places and communities is to support effective collaborative working in local places and systems that leads to improved health and wellbeing. 2023 presents both opportunities and challenges for our work in this area. There are significant opportunities created by the introduction of statutory ICSs and other policy interventions that seek to reinforce partnership working across the health and care system. However, the wider economic and political context risks undermining the positive benefit that these reforms could deliver.

Plans for 2023

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Trustees’ annual report and accounts for the year ended 31 December 2022

A key focus for our work in 2023 is therefore supporting successful implementation of the integration reforms, in particular by ensuring ICSs are implemented in a way that lives up to the original vision. We will work to ensure that ICSs function as effective partnerships that harness the full set of resources available across the NHS, local government and other partners, with the goal of improving population health.

In the context of the deteriorating economic outlook, a further focus in 2023 will be championing the vital partnership between the statutory sector and VCS organisations in supporting communities during the cost-of-living crisis and working in partnership to reduce the impacts of the crisis on population health.

Specific commitments in 2023 include:

Tackling the worst health outcomes

The aim of this programme is to work with people with lived experience, communities and services to improve health and care for people with the worst health outcomes. Unavoidable, unfair and systematic differences in the health of different groups of people is a longstanding issue and one that has been underlined by the experience during and following the Covid-19 pandemic.

In 2023 the health and care system is facing significant pressures, including a substantial backlog of care and longstanding staff shortages. Within this context, we will work to ensure that tacking the worst health outcomes remains high on ICSs’ agendas, using our voice to focus attention on health inequalities and bringing to life the experience of those with the worst health outcomes. We will also support the health and care system in bringing this lived experience to bear on policy and practice.

In 2023 we will support ICSs in their work to tackle the worst health outcomes, including by sharing learning and evidence and providing leadership support to those working in ICSs.

We will continue to implement the recommendations of the review of the Tackling the worst outcomes programme carried out in 2021, signalling our interest in four specific population groups: ethnic minority women; inclusion health groups; disabled people, including people with learning disabilities; and left-behind neighbourhoods.

Plans for 2023

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Trustees’ annual report and accounts for the year ended 31 December 2022

Specific commitments in 2023 include:

Supporting people and leaders

The aim of this programme is to create a healthier, more inclusive and effective health and care workforce. The workforce crisis poses the single greatest risk to access to and quality of care. According to the House of Commons Health and Social Care Committee in its July 2022 report, ‘The National Health Service and the [adult] social care sector are facing the greatest workforce crisis in their history.’ The crisis has been compounded by the Covid-19 pandemic which has exacerbated long-term issues such as staff shortages, chronic excessive workloads, burnout and inequalities experienced by staff from black and ethnic minority backgrounds.

Leaders and teams at all levels in the health and care system face complex challenges that they must navigate while also tackling the backlog of care, staff retention and health and wellbeing, and the implementation of the changes in the Health and Care Act 2022 that focus on integrating services and greater collaboration.

In 2023, the programme will continue to focus on the current and future workforce challenges. This will include a spotlight on staff retention (in both the NHS and social care) and the evidence for creating workplace cultures that support people’s health and wellbeing and address deep-rooted, longstanding inequalities.

Plans for 2023

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Trustees’ annual report and accounts for the year ended 31 December 2022

Specific commitments for 2023 include:

Foundations of health and care

Our broad knowledge of the health and care system and the relationships we hold across the system form the foundations that underpin all our work. We know that our stakeholders and audiences value the work we do to provide independent analysis, explain key issues and respond to developments across the breadth of health and care.

This foundational knowledge and work continues to be important in the current context. The health and social care system will remain under considerable pressure in 2023, with lengthening waits for care, staffing shortages and financial pressure a likely focus for external commentators and policy-makers. Within this context, our foundational work will take a strategic approach, taking into consideration the need to focus the Fund’s limited resources on a defined set of topics selected for our ability to have impact.

Plans for 2023

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Trustees’ annual report and accounts for the year ended 31 December 2022

Specific commitments in 2023 include:

Internal change

We have three internal priorities for 2023.

Reimagining our workplace

In 2023 we will redesign our office space to support our post-pandemic ways of working. This will include moving away from assigned desks; increasing the amount of collaboration space; and providing more flexible spaces for virtual meetings. We will keep improving the tools that allow staff to collaborate including the AV equipment and provide appropriate training and guidance. We will support staff in effective people management and teamworking in remote and hybrid settings.

Digital transformation

In 2023 we will agree a roadmap for the Fund’s digital transformation that sets out a vision for the future. We will continue the innovations we have begun to mainstream online learning offers, and design and deliver a new website. We will deliver continuous improvements to our ways of working, systems and digital tools with a focus on maximising the value of the Fund’s information and minimising risk.

Diversity and inclusion

Our work in this area is highlighted below ( see page 23).

Plans for 2023

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Trustees’ annual report and accounts for the year ended 31 December 2022

Our commitment to diversity and inclusion

The King’s Fund is strongly committed to becoming an organisation where diversity is welcomed, embraced and valued and all people are able to be themselves and thrive. We have a wide-ranging programme of work to support us in becoming a more diverse and inclusive organisation, led by our Head of Diversity and Inclusion and delivered by management and staff across the organisation.

Measuring progress

We are keen to be transparent about the progress we are making on our journey to becoming a more diverse and inclusive organisation. We measure our progress against targets we have set, by monitoring the diversity of our staff and by using external benchmarking tools to track our performance.

Targets

We have committed to publishing progress against targets we have set to increase diversity among our Board and committees, General Advisory Council and senior decision-makers,[1] and to publish data on the diversity of our staff. Our targets are:

The position at the end of 2022 is below.

Target (%) Board and
commitees (16)		 Senior decision-
makers (23)		 General Advisory
Council (23)
Female 50% (by 2020) 50% (8) 70% (16) 52% (12)
Black and ethnic
minority 20% (by 2022) 19% (3) 17% (4) 39% (9)

1 The senior decision-makers group currently comprises Trustees (12), non-Trustee committee members (4) and 24 senior staff.

Our commitment to diversity and inclusion

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Trustees’ annual report and accounts for the year ended 31 December 2022

The data shows that we met all our 2020 targets for gender diversity. For our 2022 targets, we exceeded our target for ethnic diversity among our General Advisory Council but narrowly missed the targets for our Board and Committees, and the senior decision-makers group. We do not have any all-male committees.

In December 2022, the Board of Trustees agreed to roll forward our targets for gender and black and ethnic minority representation for a further five years to 2027.

Our staff

We collect data from our staff to enable us to track the diversity of the organisation over time. We have not yet updated this for 2022. The staff survey in 2023 will enable us to collect staff data on diversity. The data for 2020 can be found in the 2020 Trustees’ annual report .

External benchmarking

To help benchmark where we are on our inclusion journey, we use two external assessments:

TIDE

TIDE assesses organisational performance and progress across multiple categories of diversity including race and disability. In 2022, we completed our second TIDE submission. In 2021, we were assessed at the ‘realise’ level and scored 43 per cent. In 2022, we have progressed to the ‘embed’ level and scored 60 per cent, higher than the median score. Overall, in 2022 the Fund was placed 74th out of 155 participating organisations, achieving a Bronze award to mark our progress.

WEI

The WEI measures progress on lesbian, gay, bi and trans inclusion in the workplace. In 2022, we completed our third WEI submission. For the first time ever, we were placed in the Top 100 of employers in the UK. Our ranking of 75th was a significant improvement on the 482nd place we achieved when we first took part in the index. This resulted in us receiving a Gold Employer Award. Again, this indicates we are making good progress.

Our commitment to diversity and inclusion

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Trustees’ annual report and accounts for the year ended 31 December 2022

Our work programme

We have a wide-ranging programme of work to support us in becoming a more diverse and inclusive organisation.

Key objectives

We identified four key thematic priorities for diversity and inclusion in 2022:

Our commitment to diversity and inclusion is also reflected in our external work programme. For example, in 2022 we:

Our commitment to diversity and inclusion

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Trustees’ annual report and accounts for the year ended 31 December 2022

In 2022, the Fund also made a public statement recognising its historical links to slavery and colonialism.

We will continue to work on the same core priorities in 2023, focusing on:

Our commitment to diversity and inclusion

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Trustees’ annual report and accounts for the year ended 31 December 2022

Financial review

Review of income and expenditure for the year ended 31 December 2022

Total income increased in the year to £13.3 million (£11.4 million in 2021), of which £6.1 million (£5.8 million in 2021) was generated from charitable activities and £7.2 million (£5.6 million in 2021) was derived from other sources, namely investments, donations and legacies and other trading activities.

Income in 2022 continued to recover from the impact of Covid-19 driven by trading income which increased by £1.7 million to £3.9 million. This was mainly due to conference and catering (running our venue) income increasing to £2.6 million (£1.0 million in 2021), which is above the £2.5 million we generated in 2019 and is expected to grow further in 2023. Investment income also grew by £0.6 million to £3.3 million as there was fuller letting of our investment properties and dividends returned to normal.

Costs increased in 2022 as income increased but remained tightly managed to maintain the withdrawal from the endowment within the agreed budgeted parameters. Total expenditure of the Fund in 2022 was £17.8 million (£15.7 million in 2021).

Expenditure on charitable activities increased slightly to £13.5 million, (£13.0 million in 2021), with increases in research and analysis due to increased income and in developing individuals, teams and organisations as a result of investment in the team. Expenditure on other trading activities increased to £3.0 million (£1.7 million in 2021) as a result of increased activity to generate income.

The average number of staff employed by the Fund during the year was 145, an increase of 4 from 2021. This was primarily due to investing in staffing as the recovery from the pandemic continues. Total staff costs after final salary pension adjustments during the year were £10.3 million, an increase of 2.6 per cent compared with 2021. Further analysis is shown in note 9 to the accounts.

We budget for operating deficits which are set at a level with a view to maintaining the long-term value of the investment capital in real terms. The Fund’s operating deficit for the year was £4.5 million, a slight increase from the £4.4 million operating deficit in 2021 as a result of the impacts described above. The withdrawal in 2022 was £0.9 million below our budget because the level of success in the income generation, which was better than budgeted, and delays in some projects (and the associated

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Trustees’ annual report and accounts for the year ended 31 December 2022

expenditure) that will now happen in 2023. Markets were turbulent in 2022 and this drove net losses on investments during the year of £14.2 million, (£18.1 million gain in 2021). However, most of this has been recovered since the end of the year as markets continue to bounce back from the lows of September. Further details on investment performance are set out below.

Net assets at 31 December 2022

The Fund’s consolidated net assets at 31 December 2022 were £212.5 million. This represents a decrease of £17.0 million (7.4 per cent) compared with the net assets at 31 December 2021. The decrease is due to the Fund’s net loss during 2022 of £18.7 million (comprising the net loss on investments of £14.2 million and the operating deficit of £4.5 million) partially offset by the actuarial gain of £1.7 million on the defined benefit pension scheme, which was capped at £1.7 million due to the uncertainty of whether any gain will be recognisable by the organisation.

Net assets at 31 December 2022 comprise fixed assets of £232.7 million, net current liabilities of £0.1 million and no defined benefit pension scheme liability. Fixed assets comprise tangible fixed assets of £52.5 million and fixed asset investments of £180.2 million including assets held because of the £20 million long-term loan.

During the year, the book value of tangible fixed assets decreased by £0.9 million due to depreciation of £1.0 million exceeding capital expenditure of £0.1 million. The main items of capital spend during the year were to refresh laptops, continue the investment in audio-visual equipment for the venue, and update the CCTV.

The value of fixed asset investments decreased during the year by £16.8 million largely due to the market falls in the year (and the divestment in the year of £2.6 million). The losses were partially recovered by the end of 2022 and have since continued to recover.

Loan

In May 2021 The King’s Fund entered into a 30-year loan arrangement with MetLife for £20 million as the interest payable on the loan is most likely to be lower than the investment returns. The interim loan repayments are interest only with the capital amount only being payable on the maturity of the loan in May 2051.

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Trustees’ annual report and accounts for the year ended 31 December 2022

Investment performance

The strategic allocation and the actual allocation at the end of the financial year are shown below.

shown below.
Asset class Actual Actual
Strategic allocation allocation
allocation Minimum Maximum 2022 2021
% % % % %
Cash 0 2.6 2.6
Government bonds 5 3.2 3.3
Corporate bonds 5 3.5 4.0
Total cash and bonds 10 8 13 9.3 9.9
UK equities 30 26 34 27.9 29.0
Overseas equities 30 26 34 33.1 33.5
Emerging market equities 15 12 18 12.0 12.4
Private equity 0 0 5 1.5 1.5
Total equities 75 72 77 74.5 76.4
Property 15 12 18 16.2 13.7
Total alternatives 15 12 18 16.2 13.7
TOTAL 100 100.0 100.0

In December 2022 the Board approved a new strategic asset allocation to further diversify the portfolio and better manage the endowment through the inflationary environment we are now in, which includes investing in private equity and infrastructure. This will be implemented, and therefore reported on, in the 2023 accounts.

The value of the Fund’s total investments at 31 December 2022, comprising publicly quoted equity and bonds, private equity and property, was £180.2 million (£197.0 million in 2021), including the investment of the £20 million loan. These investments produced income, net of investment management fees and loan interest, of £2.0 million during the year and this income, together with £2.6 million of investment capital, was withdrawn during the year to cover the Fund’s cashflow needs. After allowing for these withdrawals, the investments generated a total loss of £14.2 million (which is below the Fund’s long-term objective as set out in the Financial strategy and reserves section below).

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Trustees’ annual report and accounts for the year ended 31 December 2022

Donations and legacies

The Fund gratefully acknowledges donations and/or legacies received from the following during the past year: Her Majesty Queen Elizabeth II, C Tilby, M Rees, D Emmerson and anonymous donors.

Financial strategy and reserves

The Fund’s financial strategy is guided by its policies on expenditure, reserves and investments. The Fund’s policy on expenditure is to ensure that it has sufficient resources to meet its charitable objectives over the medium term. The Fund generates money from a variety of activities that support or are complementary to its core purpose and make best use of its assets. As the money the Fund generates is insufficient to cover its total expenditure, a proportion is drawn from investment capital. In agreeing the level of resources, Trustees are mindful of their responsibility for the stewardship of the Fund’s long-term mission. Trustees take a risk-based approach, which aims to balance the Fund’s ambition in meeting its charitable objectives; its ability to generate income; and its capacity to spend from investments, now and in the future.

The Fund’s total reserves at 31 December 2022 were £212.5 million. As set out in note 19 to the accounts, £138.5 million of this represents the expendable endowment (all of which is included in fixed asset investments), restricted funds have a surplus of £5,000 (a deficit of £13,000 in 2021) and the remaining £74.1 million represents unrestricted funds, £52.5 million of which could only be realised by disposing of fixed assets that are currently used by the Fund in its activities.

The Fund’s policy on reserves is based on recognising the long-term nature of its work and the continuing need for financial support. The expendable endowment, restricted funds and the unrestricted reserves are managed as a pooled investment with the intention of providing financial support today and for the foreseeable future. The Trustees consider reserves to be at an appropriate level.

The Fund’s policy on investments is to take a long-term approach, investing globally across a range of assets with the intention of preserving its value in real terms after allowing for expenditure. As a charity committed to improving health we do not have any direct or indirect investments in the tobacco industry.

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Trustees’ annual report and accounts for the year ended 31 December 2022

The Fund’s investment strategy is to manage the portfolio based on a total return, ie, income and capital combined. The Fund has an asset allocation that is geared towards equities because of their higher expected returns in the long term, while maintaining an appropriate level of liquidity to meet expenditure commitments in the near future. The reference date for the purpose of assessing the real value of the investments is 1 October 2019. Trustees review the amount that they spend from investments periodically, balancing the expected demand for resources with the likelihood of future investment returns. The Trustees recognise that each year the Fund will need to withdraw the investment income and some of the investment capital to bridge the gap between its annual income and expenditure, and they set the budget accordingly.

Between 1 October 2019 (the reference date) and 31 December 2022, after income and capital withdrawals and removing the loan, the value of the Fund’s investments is a loss of £30.8 million in real terms (compared to the retail prices index). Our investment strategy allows for periods of short-term losses, such as the market movements in September 2022, to maximise the long-term returns.

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Trustees’ annual report and accounts for the year ended 31 December 2022

How the Fund is constituted and governed

Our charitable objects

The King’s Fund is incorporated by Royal Charter and is governed by the provisions and byelaws of the Charter. The Charter sets out the charitable objects of the Fund, which are the promotion of health and the alleviation of sickness for the benefit of the public, by working with and for health care organisations, provided that such work will confer benefit, whether directly or indirectly, on health care in London. In this context, ‘health care organisations’ means those organisations involved in the commissioning, monitoring or supply and provision of health care.

Working for the public benefit

Our vision that the best possible health and care is available to all ensures that we work for the benefit of the public. We aim to deliver our vision and mission through a strategic plan and annual operational plans, which are approved by the Fund’s Trustees. In approving these plans, the Trustees are mindful of the Charity Commission’s general guidance on public benefit and their duty to ensure the Fund is carrying out its purpose in relation to this. In particular, the Trustees consider how activities will contribute to the aims and objectives they have set.

Governing body and committees

The Board of Trustees agrees the organisation’s overall strategic direction, in line with its charitable objectives, and scrutinises management functions delegated to the Senior Management Team. A framework sets out the authority delegated to the Chief Executive by the Board of Trustees. The Board of Trustees meets six times a year. One of the meetings is designated the Annual General Meeting, at which the Trustees’ Annual Report and Accounts for the preceding year are considered and approved.

The Board of Trustees also delegates some of its work to sub-committees as outlined below and set out on page 33.

How the Fund is constituted and governed

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Trustees’ annual report and accounts for the year ended 31 December 2022

----- Start of picture text -----
Board of Trustees
General Audit Investment Facilities Nominations Remuneration
Advisory and Risk Committee and Estates Committee Committee
Council (GAC) Committee Committee
Meet obligations Manage selection Agree annual pay
Review the work Monitor integrity of with respect to the Stewardship and and appointment settlements for the
of the Fund and financial reporting, investment and development of (including Chief Executive and
provide advice to review internal stewardship of the investment re-appointment) other Fund staff
the Trustees controls and risk Fund’s invested and operational of Trustees
management assets properties
systems and
fraud protection,
and oversee the
relationship with
internal and external
auditors
----- End of picture text -----

The General Council (known as the General Advisory Council or GAC), established in accordance with the Royal Charter meets twice a year. Members act as a source of intelligence on the key issues and challenges in the health system and use their collective expertise to reflect on the Fund’s activities and impact. The members of the GAC are appointed by the President on the recommendation of the Chief Executive for a period of up to three years which can be extended to further three-year terms. Details of the current members of the GAC, and those who served during the year, are set out on page 41.

Trading subsidiary

KEHF Ltd is a wholly owned trading subsidiary of The King’s Fund. The principal activities of the company include those that are not the primary purpose of or within the Fund’s charitable objectives, including the letting of conference facilities owned by The King’s Fund and related catering services, sponsorship for some of the Fund’s events, and income from corporate partners and supporters. 100 per cent of the taxable profits of KEHF Ltd are paid to The King’s Fund, under the Gift Aid scheme. A list of directors, who are appointed by The King’s Fund, is included on page 44. Details are included on page 69 of the financial statements.

How the Fund is constituted and governed

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Trustees’ annual report and accounts for the year ended 31 December 2022

Recruitment and appointment of Trustees

Trustees are appointed in line with the byelaws set out in the Charter. They serve for an initial term of three years and may be re-appointed for a second term and, exceptionally, a third term. Appointment as a Trustee is open to any suitably qualified member of the public.

Historically, the Nominations Committee met on an ad hoc basis when vacancies arose, but it was agreed that from 2022 the Committee would meet annually to review forthcoming exits from the Board, compare this to a skills audit and take decisions on any necessary recruitment.

Newly appointed Trustees are provided with an induction programme, which sets out the activities of the Fund and their responsibilities as a Trustee. They are invited into the Fund to meet colleagues and get to know our work and our building. The Chair of Trustees usually meets with each Trustee annually to review performance in the past year and to discuss the year ahead.

Details of the Fund’s current Trustees, and those who served during the year, are set out on page 42.

Board review/evaluation

The Board usually reviews its performance annually at an awayday when Trustees reflect on how well they are fulfilling their duties. Trustees consider the Board’s balance of skills, experience and knowledge, its diversity in the widest sense, how the Board works together and other factors relevant to its effectiveness.

They use the principles of organisational purpose, leadership, integrity, decision-making, board effectiveness, diversity, openness and accountability as included in the Charity Governance Code to ensure high standards of governance and to support continuous improvement. Trustees agreed that this could not be done effectively while meetings had to be held virtually and so decided to defer the Board effectiveness discussion in 2020 and 2021. The purpose and scope for the review was revised during 2022 and is planned for 2023.

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Trustees’ annual report and accounts for the year ended 31 December 2022

Organisational structure and how decisions are made

The Trustees appoint a Chief Executive, who is responsible for delivering the strategic direction and day-to-day management of the Fund. The Chief Executive, together with the Senior Management Team, develops strategy, plans, programmes and policies for the Fund, which the Board approves.

The framework for the Chief Executive, sets out the authority delegated to the Chief Executive. It is reviewed by the Board of Trustees every three years and when a new Chief Executive is appointed.

New internal governance arrangements were introduced at the start of 2020 to support and deliver the strategic priorities for 2020–24 and achieve the greatest impact via our programme, business and OD priorities.

Senior Management Team

The Senior Management Team (SMT) works within the framework set by the strategic plan and the annual operational plan, which sets out the detailed work programme using a list of strategic priorities as headings. The SMT monitors, reviews and takes action to ensure performance against strategic goals and on risks and issues escalated by the Portfolio Board and the Operations Committee.

Details of the current members of the Senior Management Team, and those who served during the year, are set out on page 44.

Portfolio Board

Portfolio Board provides strategic oversight of the Fund’s three programmes and foundational work:

Operations Committee

The Operations Committee oversees projects related to systems, processes and infrastructure. It is supported by a Business Improvement Forum and helps the Fund achieve the greatest impact using our business systems and ways of working.

How the Fund is constituted and governed

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Trustees’ annual report and accounts for the year ended 31 December 2022

Risk management

The King’s Fund is unavoidably exposed to risk, either due to factors in the external environment, or through the opportunities we choose to pursue and the activities we carry out that enable us to deliver on our vision, mission and strategic goals. Our Risk Management Policy sets out how we identify and actively manage the risks we are exposed to and our approach allows us visibility and control over the key corporate risks that affect the organisation as a whole.

We use a process that categorises and scores each risk by considering its cause, likelihood, impact and mitigation. Based on this we determine whether further action needs to be taken. Risks are grouped according to whether their impact will be on our strategic focus, ability to influence, reputation, internal capability or our financial sustainability as outlined in the figure below.

----- Start of picture text -----
What are we
Deliver impact through charitable
trying to do?
objectives via strategy 2020-24
What enables Strategic Ability to Our Internal Financial
us to do this? focus and influence reputation capability sustainability
prioritisation
What risks 1. Strategy lacks 2. Misjudge tone 4. Loss of credibility 6. Data and 10. Significant short- or
could affect focus, is difficult todeliver and fails to and position or quality informationare lost, stolen medium-term lossof income
this? have impact 3. Fail to influence 5. Commitment to or subject to
charitable purpose, unauthorised 11. Endowment loses
independence, access value in real terms
ethics and values
are questioned 7. Staff wellbeing
and engagement
suffers
8. Cannot efficiently
and effectively
deliver operational
commitments
9. Unable to use or
access building to
its full potential
----- End of picture text -----

How the Fund is constituted and governed

36

Trustees’ annual report and accounts for the year ended 31 December 2022

During the last quarter of 2022, a fundamental review of the Fund’s key risks was carried out involving scenario-based discussions around risks and opportunities with directors, senior leaders, and staff across the Fund as well as with Trustees and the General Advisory Council (GAC). Members of the Audit and Risk Committee and the Board of Trustees are satisfied with the procedures that are in place to review the risks, ratings, controls and actions to mitigate the Fund’s exposure to risk, as set out in the table below.

table below.
Risk area Management of risk
Strategic focus
and prioritsaton		 There is a risk that our strategy lacks focus, is difcult to deliver and fails to have an
impact.
As we implement our strategy for 2020–24 we have sought to maintain the high level of
visibility and engagement that staf had during its development. We review our strategic
focus through our ‘rolling planning’ approach to enable a short-term (as well as long-term)
view of overall actvites and responsiveness to change.
Internal governance arrangements are aligned to our strategy. This includes oversight of
the portolio of programmes, performance and impact. We are building our capacity to be
responsive through new ways of working established during 2022, to horizon-scan, identfy
opportunites for sense-making and foundatonal work and plan over the longer term.
We ensure that decision-making around income generaton is aligned to our strategic
priorites as far as possible.
Ability to
infuence		 There is a risk that our external actvites fail to infuence and prevent us from delivering
impact.
Flexibility is deliberately lef in the operatonal plan each year to allow the Fund to
respond to new or additonal opportunites.
Decision-making about new work ensures that we support the health and care system
during the signifcant challenges faced during the recovery from the pandemic, economic
challenges arising from the cost of living and ongoing turbulence.
We ensure that we contnue to publish an appropriate volume of high-quality policy work,
maintain a high media profle and contnue to track data about our reach and impact.
We ensure we adequately antcipate, plan, and prepare for the future by keeping updated
on changing digital models employed by other relevant organisatons and compettors,
keep abreast of opportunites provided by digital technology that may support improved
delivery of our outputs and prepare for a degree of staf change as we evolve and adapt
to hybrid working.
Our reputaton There is a risk that we lose our reputaton for credibility and quality and that our
independence, ethics and values are questoned.
The Fund keeps up to date with all legal and regulatory requirements and recommended
practce. We make disclosures about our income sources, decision-making and
independence on our website.
Policies, agreements and contracts set out the Fund’s positon, ensure the quality of our
outputs, address ethical issues and recognise the origin of funding. All staf and Trustees are
encouraged to understand and adhere to the values, ethics and culture of the organisaton.

How the Fund is constituted and governed

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Trustees’ annual report and accounts for the year ended 31 December 2022

Risk area Management of risk
Internal
capability		 There is a risk that we are unable to deliver our operatonal commitment efectvely and
efciently and that staf wellbeing and engagement sufers.
We have worked on developing proactve and transparent internal comms focusing on
wellbeing. Specialist support already in place (ie, a staf counsellor and network of mental
health frst aiders) is highlighted frequently. We ensure leaders and people managers
are informed in supportng employee health and wellbeing. We have built capability in
specifc areas such as our established group of mental health frst aiders.
We invest in building our internal capabilites through supportng learning and
development, as well as valuing and practsing openness, collaboraton and inclusivity.
There is a cross-Fund focus on contnuous improvement and the development of
efectve systems, processes and ways of working.
A business contnuity plan is in place to ensure that the Fund can contnue operatng
afer a major incident or external event, even if the building is inaccessible for a
prolonged period. This was updated in 2022 to incorporate the learning following the
pandemic. The IT infrastructure is designed to maximise resilience, and policies and
processes are in place to ensure appropriate use and security of data.
Financial There is a risk that our endowment loses value in real terms and that there is a
sustainability signifcant short- or medium-term loss of income.
The Fund’s investments are actvely managed and reviewed by an Investment Commitee,
which sets a strategic asset allocaton and associated performance benchmark and
balances risk against benchmark returns with a diversifed portolio of asset classes.
Investment performance is visible to Trustees and the Senior Management Team in the
monthly review of fnances.
Short- and long-term fnancial plans are maintained, and progress is monitored regularly
by the Senior Management Team and Trustees. Oversight of the defned beneft pension
scheme is maintained and is considered alongside other fnancial risks.

Risk appetite

The amount and type of risk that the Fund is willing to take in order to meet its strategic objectives is determined by the Trustees and is usually reviewed annually using a framework based on the five key risk areas summarised above. Our approach to risk appetite and management aids decision-making as it highlights areas of

opportunity and concern, supports understanding and challenge of the risk controls in place and helps to determine how much further effort is required to mitigate key risks in the risk register.

How the Fund is constituted and governed

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Trustees’ annual report and accounts for the year ended 31 December 2022

Maintaining our independence

Our independence is important to us. Our reputation is founded on the objectivity of our work, independence from outside interests and freedom to determine our own priorities. We protect this independence in a number of ways.

Our funding

Our funding comes from a diverse range of sources, protecting us against dependence on any particular source of income. As a charitable foundation, we have an endowment – funds maintained and invested since we were established in 1897 – which generate an annual income. As set out in our financial strategy, we draw on this each year to provide a consistent stream of funding to support our work. In 2022, the charity had no fundraising activities requiring disclosure under S162A of the Charities Act 2011.

Our remaining funding mainly comes from a mixture of income-generating charitable activity (including leadership and organisational development services, our events and funded research and policy analysis), and commercial activities (including hiring our venue and renting office space in our building). The income from these activities comes from a diverse range of sources including commercial organisations, national and local NHS organisations, the voluntary and community sector, and national and local government. More detail is provided in the Consolidated Statement of Financial Activities.

On our website we have further analysis of the income we generate from the variety of activities mentioned in the Financial Review section above.

How we set policy

We have robust arrangements in place to assure the quality and independence of our research, policy analysis and other published work which are described on our website . Responsibility for our public positioning rests with the Chief Executive who works closely with directors and other colleagues to agree our position on relevant issues. The Board discusses our public positioning with the Senior Management Team on a regular basis but is not involved in determining our position on individual policy issues.

Our partnerships

We maintain partnerships with a range of organisations through our Corporate Partners and Supporters scheme . These relationships are governed by our ethical collaboration policy , which includes provisions to protect our independence.

How the Fund is constituted and governed

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Trustees’ annual report and accounts for the year ended 31 December 2022

Conflicts of interest policy

Trustees, committee members and senior members of staff are required to recognise and deal appropriately with conflicts of interest. Our Conflicts of Interest Policy, which is reviewed annually by the Audit and Risk Committee, sets out our approach. We recognise that even the perception that there is a conflict of interest could damage our reputation. Trustees, members of committees established by the Board of Trustees, members of the board of KEHF Ltd, senior members of staff (the Senior Management Team) and any other people as requested by the Trustees complete declarations of all interests annually. All interests, rather than just those which the person completing the declaration considers relevant, are declared. This avoids the exclusion of any interests that others may perceive to be potential conflicts.

The Fund’s Register of all Interests is reported to the Audit and Risk Committee and to the Board of Trustees annually. It is made available to the Fund’s auditors and is published on the Fund’s website .

Remuneration policy

The King’s Fund believes that to attract and retain the calibre of staff we need to deliver our charitable objectives our remuneration policy should provide salaries that are competitive in our sector; be considered fair, equitable and transparent; allow for pay progression over time; and deliver arrangements that are sustainable within the available resources.

The Fund operates an incremental pay scale for most of its staff, underpinned by a factors-based job evaluation system. The scale comprises grades from 1 to 8c, each with a minimum and maximum point and normally five incremental points in between. Salaries are reviewed annually, and the Fund has the option to increase scale points by an agreed percentage. Any such increase takes effect from the following 1 January. The Board of Trustees has delegated responsibility for determining matters of pay and pay-related benefits to its Remuneration Committee.

The Committee meets routinely in the winter to agree the following year’s percentage increase and arrangements for executive pay. In agreeing the pay award, the Committee considers indicators in the wider economy; the levels of award that have been made by organisations the Fund compares itself with; and affordability. At the meeting held in October 2022, the Committee was mindful of the cost-of-living crisis caused by levels of inflation unprecedented in recent times and high energy costs. As a result, it recommended an increase of 5 per cent in January 2023 and a non-consolidated lump sum to be paid in December 2022, which Trustees agreed.

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Trustees’ annual report and accounts for the year ended 31 December 2022

Reference and administrative details

Registered office

The King’s Fund 11–13 Cavendish Square London W1G 0AN

Charity number

1126980

Company number

RC000826

Patron

Her Majesty Queen Elizabeth II [until September 2022]

President

His Royal Highness The former Prince of Wales

General Council

The members who served during the year and since the year end are: Kay Boycott, Non-Executive Director, Imperial College Healthcare NHS Trust [to December 2022] Professor Yvonne Doyle CB, Regional Director, Public Health England [to December 2022] Hannah Farrar, Chief Executive, Carnall Farrar [to December 2022] Ceinwen Giles, Director, Shine Cancer Support [to December 2022] Professor Nick Harding OBE, Chief Medical Officer, Operose Health [to December 2022] Ben Page, Chief Executive, Ipsos [to December 2022] Martin Reeves, Chief Executive, Coventry City Council [to December 2022] Professor Kate Ardern, Hon Professor Salford University, Visiting Professor, Chester University, and independent public health consultant Samantha Allen, Chief Executive, North East and North Cumbria Integrated Care System Stephen Chandler, Corporate Director for Adult Services, Oxfordshire County Council

Reference and administrative details

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Trustees’ annual report and accounts for the year ended 31 December 2022

Fatima Khan-Shah, Senior Responsible Officer, Carers Worksteam, West Yorkshire and Harrogate Health and Care Partnership Jonathan McShane, Chair, Terrence Higgins Trust Hardev Virdee, Group Chief Financial Officer, Barts NHS Trust Dr Navina Evans, Chief Executive, Health Education England Lord Victor Adebowale CBE, Chair and Co-founder, Visionable Sarah Pickup OBE, Deputy Chief Executive, Local Government Association John James OBE, Chief Executive, Sickle Cell Society Samira Ben Omar, independent consultant, community collaboration Jatinder Harchowal MBE, Chief Pharmacist, UCL NHS Foundation Trust Dr Kamran Abbasi, Editor-in-Chief, The BMJ Dr Nikita Kanani MBE, Medical Director of Primary Care, NHS England Professor Nicholas Mays, Professor of Health Policy, London School of Hygiene and Tropical Medicine

Members appointed from 2023: Karen Bonner, Chief Nurse, Buckinghamshire NHS Trust Rachel Burnham, Director of Operations, Guy’s & St Thomas’ NHS Foundation Trust Jane McGrath, Chief Executive, We Coproduce Shigufta Khan, Chief Executive, The Wish Centre Gabrielle Matthews, foundation doctor Anna Quigley, Research Director, Ipsos Yasmin Razak, GP partner, North Kensington, and Clinical Director, Neohealth Dr Justin Varney, Director of Public Health, Birmingham City Council

Board of Trustees

The Trustees who served during the year and since the year end are: Professor Mark Britnell Alan Brown Richard Clark Dame Ruth Carnall DBE [to April 2023] Dr Jane Collins Dominic Dodd Professor Kamila Hawthorne MBE [from February 2022] Dr Annalisa Jenkins Rt Hon Professor Lord Kakkar KBE PC [Chair of the Board of Trustees] Dr Stephanie Kuku Rt Hon Jacqui Smith Professor Carolyn Wilkins OBE [from February 2022]

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Trustees’ annual report and accounts for the year ended 31 December 2022

Sub committees

The committee members serving during the year and since the year end are as follows.

Investment Committee

Alan Brown Richard Clark [Chair of the Committee] Sarah Fromson [from March 2023] Robert Holmes Rt Hon Professor Lord Kakkar KBE PC Dr Stephanie Kuku John McLaughlin

Remuneration Committee

Alan Brown Dame Ruth Carnall [Chair of the Committee to April 2023] Dominic Dodd Rt Hon Professor Lord Kakkar KBE PC

Nominations Committee

Alan Brown Dame Ruth Carnall Rt Hon Professor Lord Kakkar KBE PC [Chair of the Committee] Professor Carolyn Wilkins [from June 2022]

Audit and Risk Committee

Dr Jane Collins Dominic Dodd [Chair of the Committee] Professor Kamila Hawthorne MBE [from February 2022] Dr Annalisa Jenkins

Facilities and Estates Committee

Alan Brown Richard Clark [Chair of the Committee] Andy Doyle Rt Hon Professor Lord Kakkar KBE PC Anna Rule

Reference and administrative details

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Trustees’ annual report and accounts for the year ended 31 December 2022

KEHF Ltd Board of Directors

Alan Brown [Chair of the Board of Directors from February 2022] Dominic Dodd Richard Murray Anna Rule Matthew Tolchard Company secretary – Lucy Johnson-Brown [to February 2023] Company secretary – Paul Clough [from February 2023]

Senior Management Team

Chief Executive – Richard Murray Director of Policy – Sally Warren Director of Finance and Operations – Paul Clough Director of Leadership and Organisational Development – Suzie Bailey Director of Communications and Information – Patrick South [to October 2023] Director of HR – Shirley Collier

Key advisers

Bankers

National Westminster Bank Plc 250 Regent Street London W1B 3BN

Solicitors

Farrer & Co LLP 66 Lincoln’s Inn Fields London WC2A 3LH

Mills and Reeve LLP 24 King William Street London EC4R 9AT

Actuaries

Buck Consultants Limited 160 Queen Victoria Street London EC4V 4AN

Auditor

Haysmacintyre LLP 10 Queen Street Place London EC4R 1AG

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Trustees’ annual report and accounts for the year ended 31 December 2022

Investment adviser

Stanhope Capital LLP 35 Portman Square London W1H 6LR

Investment property manager

Savills plc 33 Margaret Street London W1G 0JD

Basing Estate monitoring agent

Bidwells 25 Old Burlington Street London W1S 3AN

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Trustees’ annual report and accounts for the year ended 31 December 2022

Statement of Trustees’ responsibilities

The Trustees are responsible for preparing the Trustees’ Annual Report and Accounts in accordance with applicable law and regulations.

Under charity law the Trustees must not approve the accounts unless they are satisfied that they give a true and fair view of the state of affairs of the charity and the group and of their net outgoing resources for that period. In preparing these accounts, the Trustees are required to:

The Trustees are responsible for keeping proper accounting records that are sufficient to show and explain the charity’s transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the accounts comply with the Charities Act 2011. 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.

Signed on behalf of the Trustees

Lord Kakkar

Chair

7 June 2023

Statement of Trustees’ responsibilities

46

Trustees’ annual report and accounts for the year ended 31 December 2022

AUDITOR’S REPORT AND ACCOUNTS

Auditor’s report and accounts

48

Trustees’ annual report and accounts for the year ended 31 December 2022

Independent auditor’s report to the Trustees of The King’s Fund

Opinion

We have audited the financial statements of The King’s Fund for the year ended 31 December 2022 which comprise the Consolidated Statement of Financial Activities, the Consolidated and Charity Balance Sheets, the Consolidated Cash Flow Statement, and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder. 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 group 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.

Independent auditor’s report to the Trustees of The King’s Fund

49

Trustees’ annual report and accounts for the year ended 31 December 2022

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 group’s ability to continue as a going concern for a period of at least 12 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.

Other information

The Trustees are responsible for the other information. The other information comprises the information included in the Trustees’ Annual Report. 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.

In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

Independent auditor’s report to the Trustees of The King’s Fund

50

Trustees’ annual report and accounts for the year ended 31 December 2022

Responsibilities of trustees for the financial statements

As explained more fully in the Trustees’ responsibilities statement set out on page 46, the Trustees 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 group’s and the parent charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the group or the parent charity 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:

Based on our understanding of the group and the environment in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to charity law, tax legislation, employment law, GDPR and health and safety and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as Charities Act 2011, the Charities SORP and FRS 102.

Independent auditor’s report to the Trustees of The King’s Fund

51

Trustees’ annual report and accounts for the year ended 31 December 2022

We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to improper recognition of income and management bias in certain accounting estimates and judgements. Audit procedures performed by the engagement team included:

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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

Independent auditor’s report to the Trustees of The King’s Fund

52

Trustees’ annual report and accounts for the year ended 31 December 2022

Use of our report

This report is made solely to the charity’s Trustees, as a body, in accordance with section 144 of the Charities Act 2011 and regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the charity’s Trustees 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 charity’s Trustees as a body for our audit work, for this report, or for the opinions we have formed.

Signed by:

Haysmacintyre LLP

Statutory Auditors 10 Queen Street Place London, EC4R 1AG

21 June 2023

Haysmacintyre LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006.

Independent auditor’s report to the Trustees of The King’s Fund

53

Trustees’ annual report and accounts for the year ended 31 December 2022

Consolidated statement of financial activities

for the year ended 31 December 2022

Unrestricted
funds
Notes
£000
Income and endowments from:
Donations and legacies
3
Charitable activities
Research and analysis
804
Developing individuals, teams
and organisations
4,308
Promoting understanding
98
Bringing people together
377
Total charitable activities
4
5,587
Other trading activities
5
3,936
Investments
6
3,277
Other
–
Total
12,803
Expenditure on:
Charitable activities
Research and analysis
4,039
Developing individuals, teams
and organisations
5,246
Promoting understanding
2,963
Bringing people together
774
Total charitable activities
4
13,022
Other trading activities
7
3,022
Raising funds costs
8
1,036
Total
17,080
Operating (defcit) / surplus
(4,277)
Net (loss) / gain on investments
(722)
Net (expenditure)/income
(4,999)
Transfers between funds
(9)
Actuarial gain on defned beneft
pension scheme
18
1,736
Net movement in funds
(3,272)
Reconciliation of funds:
Total funds brought forward
19
77,342
Total funds carried forward
19
74,070		 Restricted
funds
£000
–
402
70
–
25
497
–
–
–
497
395
63
–
30
488
–
–
488
9
–
9
9
–
18
(13)
5		 Endowed
funds
£000
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
238
238
(238)
(13,501)
(13,739)
–
–
(13,739)
152,197
138,458		 Total
2022
£000
3
1,206
4,378
98
402
6,084
3,936
3,277
–
13,300
4,434
5,309
2,963
804
13,510
3,022
1,274
17,806
(4,506)
(14,223)
(18,729)
–
1,736
(16,993)
229,526
212,533		 Total
2021
£000
608
810
4,393
96
498
5,797
2,226
2,680
68
11,379
4,190
4,908
2,864
1,042
13,004
1,742
997
15,743
(4,364)
18,116
13,752
–
9,199
22,951
206,575
229,526

All of the operations represented by the information above are continuing.

The notes on pages 57 to 78 form part of these financial statements

Consolidated statement of fnancial activities

54

Trustees’ annual report and accounts for the year ended 31 December 2022

Balance sheets

as at 31 December 2022

Consolidated Consolidated Charity Charity
2022 2021 2022 2021
Notes £000 £000 £000 £000
Fixed assets:
Tangible assets 11 52,508 53,415 52,508 53,415
Intangible assets 12 5 31 5 31
Investments 13 180,159 196,954 180,209 197,004
Total fixed assets 232,672 250,400 232,722 250,450
Current assets:
Debtors 15 1,820 2,306 1,835 2,080
Cash at bank and in hand 3,353 3,031 2,620 2,601
Total current assets 5,173 5,337 4,455 4,681
Liabilities:
Creditors: Amounts falling due within one year 16 (5,312) (4,588) (4,647) (3,985)
Net current (liabilities)/assets (139) 749 (192) 696
Total assets less current liabilities 232,533 251,149 232,530 251,146
Creditors: Amounts falling due after more than one year 17 (20,000) (20,000) (20,000) (20,000)
Net assets excluding pension liability 212,533 231,149 212,530 231,146
Defined benefit pension scheme liability 18 – (1,623) – (1,623)
Total net assets 212,533 229,526 212,530 229,523
The funds of the charity:
Expendable endowment funds 138,458 152,197 138,458 152,197
Restricted funds 5 (13) 5 (13)
Unrestricted funds 74,070 78,965 74,067 78,962
Pension reserve – (1,623) – (1,623)
Total unrestricted funds 19 74,070 77,342 74,067 77,339
Total charity funds 19 212,533 229,526 212,530 229,523

Approved on behalf of the Board of Trustees and authorised for issue on 7 June 2023.

Alan Brown Treasurer

The notes on pages 57 to 78 form part of these financial statements.

Balance sheets

55

Trustees’ annual report and accounts for the year ended 31 December 2022

Consolidated cashflow statement

as at 31 December 2022

Notes
Net cash (used in) operating activities
A
Cash fows from investing activities:
Dividends, interest and rents from investments
Investment management fees
Purchase of tangible fxed assets
Net purchase/(sale) of investments
Net cash provided by investing activities
Cash fows from fnancing activities:
Cash infows from new borrowing
Interest on loan
Net cash provided (spent on)/by fnancing activities
Change in cash and cash equivalents in the reporting period
B
A. Reconciliation of net (expenditure)/income to net cash fow from operating activities
Net (expenditure)/income for the reporting period
Adjustments for:
Investment income
Net loss/(gain) on investments
Investment management fees
Interest on the loan
Depreciation and amortisation charges
Other fnance cost of the pension scheme
Current service cost less contributions to the pension scheme
Decrease/(increase) in debtors
Increase in creditors
Net cash (used in) operating activities
B. Movement of cash and cash equivalents
At 1
January
2022
£000
Cash at bank and in hand
3,031		 2022
£000
(4,124)
3,277
(740)
(129)
2,572
4,980
–
(534)
(534)
322
2022
£000
(18,729)
(3,277)
14,223
740
534
1,062
28
85
486
724
(4,124)
Movement
£000
322		 2021
£000
(4,887)
2,612
(663)
(366)
(14,934)
(13,351)
20,000
(334)
19,666
1,428
2021
£000
13,752
(2,680)
(18,116)
663
334
1,038
140
190
(219)
11
(4,887)
At 31
December
2022
£000
3,353

Consolidated cashfow statement

56

Trustees’ annual report and accounts for the year ended 31 December 2022

Notes to the accounts

for the year ended 31 December 2022

1 Charity information

The Charity (registered number 1126980) is incorporated by Royal Charter and is governed by the provisions and byelaws of the charter; any revocation, alteration or additions to the byelaws must be approved by the Privy Council.

The charity has a wholly owned subsidiary trading company, KEHF Limited (company registration number 2754697).

The address of the registered office of both The King’s Fund and KEHF Limited is 11-13 Cavendish Square, London W1G 0AN.

2 Accounting policies

The principal accounting policies adopted and critical areas of judgements are as follows.

Basis of preparation

The accounts have been prepared to give a ‘true and fair view’ and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a ‘true and fair view’. This departure has involved following Accounting and Reporting by charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) – Second Edition issued October 2019 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.

The King’s Fund 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 note(s).

The accounts of The King’s Fund and KEHF Limited are consolidated, on a line-by-line basis, to produce the Consolidated Accounts. No separate Statement of Financial Activities has been presented for The King’s Fund but the charity’s total income and net movement in funds in the year are set out in note 14.

Notes to the accounts

57

Trustees’ annual report and accounts for the year ended 31 December 2022

2 Accounting policies (continued)

Basis of preparation (continued)

The charity has taken advantage of the exemptions in FRS 102 from the requirements to present a charity only Cash Flow Statement and certain disclosures about the charity’s financial instruments.

Going concern

The Fund’s planning process, including financial projections, takes into consideration the current economic climate and its potential impact on the various sources of income and planned expenditure. The Fund has a reasonable expectation that its resources are adequate to continue in operational existence for the foreseeable future and that there are no material uncertainties that call into doubt the charity’s ability to continue. The accounts have, therefore, been prepared on the basis that the charity is a going concern.

Critical accounting judgements and key sources of estimation uncertainty

In the application of the charity’s accounting policies, which are described below, Trustees are required to make judgements, estimates and assumptions about carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an on-going basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period and future periods if the revision affects the current and future periods.

The key sources of estimation uncertainty that have a significant effect on the accounts recognised in the financial statements are summarised below.

Notes to the accounts

58

Trustees’ annual report and accounts for the year ended 31 December 2022

2 Accounting policies (continued)

Critical accounting judgements and key sources of estimation uncertainty (continued)

Other accounting policies

Donations and legacies

Donations and legacies are recognised in the Statement of Financial Activities when they become receivable, that is when it is reasonably certain that they will be received and where the value can be measured with sufficient reliability.

Grants receivable

Grants receivable are recognised in the Statement of Financial Activities in full in the year in which they become receivable, that is when the conditions for receipt have been met.

Investment income

Income from investments is accounted for when dividends and interest are receivable and includes recoverable taxation. Income received, but not distributed, by pooled funds is included as part of the net gains/losses on investment assets in the Statement of Financial Activities.

Other income recognition

Project income is recognised on a percentage completion basis in relation to actual costs spent at the Balance Sheet date as a proportion of total planned costs over the life of the project. Projected losses on projects are provided as soon as they can be reasonably foreseen.

Notes to the accounts

59

Trustees’ annual report and accounts for the year ended 31 December 2022

2 Accounting policies (continued)

Other income recognition (continued)

All other income is included in the Statement of Financial Activities when The King’s Fund is legally entitled to the income and the amount can be quantified with reasonable accuracy.

Expenditure

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category.

The costs of certain support departments are allocated to the principal activities on the basis set out in note 4.

Pension costs

The King’s Fund Staff Pension and Life Assurance Plan (the Plan) is a defined benefit scheme. The current service costs of the Plan, together with the net interest on the net defined benefit liability (calculated at the discount rate), are charged to the Statement of Financial Activities within staff costs. The actuarial gains and losses on the Plan are recognised immediately as other recognised gains and losses.

The assets of the Plan are measured at fair value at the Balance Sheet date. Liabilities are measured on an actuarial basis at the Balance Sheet date using the projected unit method and discounted at a rate equivalent to the current rate of return on a highquality corporate bond of equivalent term to the scheme liabilities. Where the scheme is determined to be in a deficit position, this is recognised in full as a liability. Where the scheme is determined to be in a surplus position, a surplus is recognised as an asset only to the extent that this can be recovered in future years through reductions in employer contributions or through a specific refund/reimbursement from the scheme.

The NHS Pension Scheme is a multi-employer defined benefit scheme. Contributions have been accounted for in the period to which they relate, as if it were a defined contribution scheme as it is not possible to identify our share of the underlying assets and liabilities.

The King’s Fund Group Personal Pension Plan is a defined contribution scheme and contributions have been accounted for in the period to which they relate.

Notes to the accounts

60

Trustees’ annual report and accounts for the year ended 31 December 2022

2 Accounting policies (continued)

Intangible assets

Intangible assets relate to the enterprise resource planning project. Once brought into use, they are amortised on a straight-line basis over the anticipated life of the benefits arising from the completed project. The anticipated life has been taken as five years.

Tangible assets

Tangible assets costing more than £5,000, including any incidental expenses of acquisition, are capitalised and recorded at cost.

Depreciation is calculated so as to write off the cost of the tangible assets on a straight-line basis over the expected useful economic lives of the assets concerned which are taken as:

which are taken as:
Plant and machinery:
Electrical installatons 3 to 30 years
Mechanical installatons 5 to 30 years
Lifs 30 years
Plant and machinery:
Electrical installatons
Mechanical installatons
Lifs		 3 to 30 years
5 to 30 years
30 years
Furniture, ftngs and equipment:
Catering equipment 3 to 20 years
Furniture and ftngs 5 to 20 years
ICT hardware and sofware 2 to 5 years
Ofce equipment 3 to 10 years
Freehold buildings 50 years

Freehold land is not depreciated.

Financial instruments

The King’s Fund 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 the present value of future cash flows (amortised cost). Financial assets held at amortised cost comprise cash at bank and in hand, together with trade and other debtors. Financial liabilities held at settlement value or amortised cost comprise trade and other creditors, and fixed interest loan.

Investments, including bonds and cash held as part of an investment portfolio, are held at fair value at the Balance Sheet date, with gains and losses being recognised within income and expenditure. Investments in subsidiary undertakings are held at cost less impairment.

Notes to the accounts

61

Trustees’ annual report and accounts for the year ended 31 December 2022

2 Accounting policies (continued)

Foreign currencies

Transactions denominated in foreign currencies during the year are translated at prevailing rates. Assets and liabilities are translated at rates applying at the Balance Sheet date. All differences are taken to the Statement of Financial Activities.

Funds

Expendable endowment: the expendable endowment is maintained to generate income for the benefit of The King’s Fund. The capital sum may be spent at the discretion of the trustees.

Restricted funds: funds received in relation to a restricted grant that can only be used for that purpose.

Unrestricted funds: unrestricted funds include the net book value of the tangible fixed assets, the intangible fixed assets of the charity, investments and net current assets, less the pension reserve. The split between these categories is shown in note 19. The King’s Fund has the power to spend its unrestricted funds within its objects as it sees fit.

3 Taxation

No corporation tax is payable by The King’s Fund as it is able to make use of the tax exemptions on income and capital gains available to charities. No corporation tax is payable by the subsidiary company, KEHF Limited, as it is expected that each year an amount equal to its taxable profits will be paid to The King’s Fund under the Gift Aid scheme.

Notes to the accounts

62

Trustees’ annual report and accounts for the year ended 31 December 2022

4 Income and expenditure on charitable activities

Developing
Research
individuals,
and
teams and
Promoting
analysis organisations understanding
£000
£000
£000
Commissioned work
804
2,483
19
Grants
402
70
–
Course places or event tickets
–
1,825
–
Other
–
–
79
Total income
1,206
4,378
98
Direct expenditure
2,581
3,569
1,616
Support departments (4a)
1,853
1,740
1,347
Total expenditure
4,434
5,309
2,963
4a
Support departments
Facilities (1)
590
554
429
Communications (2)
174
164
127
Other support (3)
1,089
1,022
791
Total cost of support departments
1,853
1,740
1,347		 Bringing
people
together
£000
–
25
377
–
402
467
337
804
107
32
198
337		 Total
2022
£000
3,306
497
2,202
79
6,084
8,233
5,277
13,510
1,680
497
3,100
5,277		 Total
2021
£000
3,174
251
2,307
65
5,797
7,829
5,175
13,004
1,232
510
3,433
5,175

(1) Facilities costs have been apportioned based on average headcount of the various departments during the year.

(2) Communication costs have been apportioned based on average headcount of the various departments during the year.

(3) Other support departments include: Chief Executive’s Office, Finance, HR, Operations and Information Technology. Depreciation is also included within this category. The amount paid by the trading subsidiary via a management charge is excluded and has been allocated to expenditure on other trading activities. Remaining costs have been apportioned based on average headcount of the various departments during the year.

The comparatives for 2021 can be seen in note 23.

5 Income from other trading activities

Income from other trading activities comprises:
External conference and catering services
Income from sponsorship and partnership
Income from tenants
Income from non-charitable consultancy		 2022
£000
2,537
774
506
119
3,936		 2021
£000
971
869
302
84
2,226

Notes to the accounts

63

Trustees’ annual report and accounts for the year ended 31 December 2022

6 Income from investments

Income from securities and cash assets:
Equities
Bonds
Cash
Investment properties
7
Expenditure on other trading activities
Expenditure on other trading activities comprises:
External conference and catering services
Cost associated with sponsorship and partnerships
Cost associated with tenants
Cost associated with non-charitable consultancy
8
Raising funds costs
Expenditure on raising funds costs comprises:
Fees paid to managers, custodians, administrators and advisers for the discharge
of their duties in connection with the investment portfolio and properties
Interest expense on the loan
Property repairs and maintenance
9
Employees
Wages and salaries
Social security costs (including apprenticeship levy)
Pension costs (before fnal salary pension adjustments)
Total emoluments before fnal salary pension adjustments
Final salary pension adjustments
Total emoluments after fnal salary pension adjustments		 2022
£000
2,258
271
21
727
3,277
2022
£000
2,640
269
6
107
3,022
2022
£000
360
534
380
1,274
2022
£000
8,103
988
1,146
10,237
113
10,350		 2021
£000
1,762
301
1
616
2,680
2021
£000
1,298
372
6
66
1,742
2021
£000
450
334
213
997
2021
£000
7,744
903
1,113
9,760
331
10,091

Included in the above pension costs is £272,000 (2021: £348,000) relating to the current employer service costs of the defined benefit pension scheme and £0 relating to settlement agreement payments (2021: £56,000).

Notes to the accounts

64

Trustees’ annual report and accounts for the year ended 31 December 2022

9 Employees (continued)

Average number of staff:

Research and analysis
Developing individuals, teams and organisations
Promoting understanding
Bringing people together
Other trading activities
Facilities
Communications
Other support departments
Total
The number of employees with remuneration (employee benefts
excluding employer pension costs) exceeding £60,000 were:
£60,000–£69,999
£70,000–£79,999
£80,000–£89,999
£90,000–£99,999
£100,000–£109,999
£110,000–£119,999
£120,000–£129,999
£190,000–£199,999		 2022
33
31
24
6
10
11
6
24
145
2022
8
8
8
7
5
1
3
1		 2021
31
29
25
7
12
10
4
23
141
2021
11
8
3
8
3
2
2
1

Contributions were made to The King’s Fund Staff Pension and Life Assurance Plan, which is a defined benefit scheme, for 4 (2021: 4) higher-paid employees and to the NHS Pension Scheme, which is also a defined benefit scheme, for 4 (2021: 4) higher-paid employees. Contributions totalling £450,000 (2021: £410,000) were made to The King’s Fund Group Personal Pension Plan, which is a defined contribution scheme, for 31 (2021: 28) higher-paid employees.

The total employee benefits, including employer pension costs, received by the Chief Executive in 2022 were £224,198 (2021: £216,929).

The key management personnel of the charity comprise the Trustees and the Senior Management Team. None of the Trustees have been paid any remuneration or received any other benefits from an employment with the charity or a related entity. Three Trustees were reimbursed for travel expenses incurred totalling £210 (2021: none). The total employee benefits, including employer pension costs and National Insurance, received by the key management personnel in 2022 were £1,071,000 (2021: £1,008,000).

Notes to the accounts

65

Trustees’ annual report and accounts for the year ended 31 December 2022

10 Governance costs

10 Governance costs
Auditor’s remuneration
External audit fees (Charity)
External audit fees (KEHF Limited)
Meeting costs		 2022
£000
25
6
–
31		 2021
£000
22
5
–
27

Fees totalling £3,400 (2021: £1,200) were payable to the auditors for taxation services, in 2022 required for both the charity and the trading subsidiary.

11 Tangible fixed assets

Cost
At 1 January
Additions
Disposals
At 31 December
Depreciation
At 1 January
Charge for the year
Disposals
At 31 December
Net book value
At 31 December
Previous year		 Freehold
land and
buildings
£000
55,350
–
–
55,350
3,885
483
–
4,368
50,982
51,465		 Plant and
machinery
£000
4,744
21
–
4,765
3,700
186
–
3,886
879
1,044		 Furniture,
fttings and
equipment
£000
3,226
108
(114)
3,220
2,320
367
(114)
2,573
647
906		 2022
Total
assets
£000
63,320
129
(114)
63,335
9,905
1,036
(114)
10,827
52,508
53,415

Freehold land and buildings represent the Fund’s offices at 11–13 Cavendish Square, London W1G 0AN. When adopting FRS 102, the Fund has chosen to use the fair value of the freehold land and buildings as its deemed cost as at 1 January 2014. Within the above total, the amount attributable to the freehold land is £33,600,000 based on the valuation completed by Savills plc.

As at 31 December 2022 The King’s Fund had no capital commitments (2021: £0).

Notes to the accounts

66

Trustees’ annual report and accounts for the year ended 31 December 2022

12 Intangible fixed assets

Cost
At 1 January
Disposals
At 31 December
Amortisation
At 1 January
Charge for the year
Disposals
At 31 December
Net Book Value
31 December
Previous year		 2022
£000
918
(26)
892
887
26
(26)
887
5
31		 2021
£000
918
–
918
845
42
–
887
31
73

Intangible assets relate to costs expended on the Fund’s enterprise resource planning project, website and other software.

13 Fixed asset investments

Securities:
Equities
Index linked bonds
Fixed interest bonds
Private equity funds
Cash and cash equivalents
Investment properties
Consolidated total
Shareholding in subsidiary company
Charity total		 2022
Total
£000
131,493
5,703
6,444
2,672
4,630
29,217
180,159
50
180,209		 2021
Total
£000
147,417
6,380
8,023
3,016
5,148
26,970
196,954
50
197,004

Notes to the accounts

67

Trustees’ annual report and accounts for the year ended 31 December 2022

13 Fixed asset investments (continued)

A loan of £20,000,000 was taken out in 2021, this has been fully invested in the securities portfolio and has helped to increase the value of the investments held. For more information about the loan see note 17.

Within the total securities, £143,640,000 is classified as Level 1 as defined by IFRS 7, that is ‘the investment is quoted in an active market and measured at the unadjusted quoted price at the reporting date’. The remaining £2,672,000 is classified as Level 3, that is ‘the investment is measured using unobservable inputs at the reporting date’. The Level 3 amount comprises two Private Equity Funds of funds. No readily identifiable market price is available for these unquoted funds and therefore they are included at the most recent valuations provided by the manager.

In respect of the above Private Equity funds, the managers have confirmed that all future commitments to both funds have been waived and have therefore deemed the shares to be fully paid. One of the funds will continue to return cash to investors prior to their final closure which subject to shareholder agreement is proposed to be extended by 2 years from 2023 to 2025, the other has now fully closed and is in liquidation with final payments due once this process has been completed.

The Fund has freehold interest in two investment properties. The Old Basing Estate is a mixed agricultural estate extending to approximately 981 acres and has been included at Fair Value of £16,867,000 (2021: £15,570,000) based on a management update to the valuation by Savills as at 31 December 2020. In 2015 the Fund purchased a freehold interest in properties at 7-10 Dean’s Mews which adjoin the Fund’s offices at 11-13 Cavendish Square. They have been included at a value of £12,350,000 from the valuation by Savills in September 2022 (2021: £11,400,000).

A reconciliation of the movement in the market value of the Fund’s investments during the year is as follows:

the year is as follows:
Opening balance at 1 January
Net monies (disinvested)/invested
(Decrease)/increase on revaluation
Shareholding in subsidiary company
Closing balance at 31 December		 2022
£000
196,954
(2,572)
(14,223)
180,159
50
180,209		 2021
£000
163,835
16,718
16,401
196,954
50
197,004

Notes to the accounts

68

Trustees’ annual report and accounts for the year ended 31 December 2022

14 Subsidiary company

KEHF Limited, a company registered in England number 2754697, began trading on 2 August 2007 having previously been reported as a dormant company.

The authorised share capital of the company is 50,000 shares of £1 each. The King’s Fund owns all of the shares and is therefore the sole member of the company. The company has five directors comprising two The King’s Fund trustees, a The King’s Fund Facilities and Estates committee member and two The King’s Fund employees.

The activities undertaken by the company comprise the letting of conference space within the premises of The King’s Fund to third parties, along with the provision of catering and other related services. In addition, KEHF Limited manages sponsorship arrangements including with partners and supporters, and consulting activities that are outside the charitable objects. These activities have increased in 2022 but remain below pre-Covid-19 levels from 2019.

In the year to 31 December 2022, the company had income of £3,496,000 (2021: £1,952,000) and incurred expenditure of £2,909,000 (2021: £1,565,000) thereby generating an operating profit of £587,000 (2021: £387,000). The directors have made donations in the year of £587,000 to The King’s Fund through Gift Aid. The resultant accumulated surplus of KEHF Limited at 31 December 2022 is £3,000 (2021: £3,000).

Excluding KEHF Limited’s results, the Charity’s total income in 2022 was £11,466,000 (2021: £10,313,000) and the Charity’s net decrease in funds was £16,993,000 (2021: net increase of £22,875,000).

15 Debtors

15 Debtors
Consolidated
Consolidated
2022
2021
£000
£000
Trade debtors
1,063
1,364
Amounts owed by KEHF Limited
–
–
Prepayments and accrued income
750
935
Other debtors
7
7
Donations from KEHF Limited
–
–
1,820
2,306		 Charity
2022
£000
819
211
711
7
87
1,835		 Charity
2021
£000
1,037
141
819
7
76
2,080

Notes to the accounts

69

Trustees’ annual report and accounts for the year ended 31 December 2022

16 Creditors: amounts falling due within one year

Consolidated
Consolidated
2022
2021
£000
£000
Trade creditors
588
469
Amounts owed to KEHF Limited
–
–
Deferred income – see analysis below
3,591
3,010
Taxation and social security
401
292
Other creditors and accruals
732
817
5,312
4,588
Balance at
Released
1 January
during
2022
the year
Deferred income analysis
£000
£000
Programme fees received in advance
2,549
(2,549)
Charity total
2,549
(2,549)
Other deferred income including KEHF Limited
461
(461)
Consolidated total
3,010
(3,010)		 Charity
Charity
2022
2021
£000
£000
463
332
10
3
3,068
2,549
401
292
705
809
4,647
3,985
Balance at
Additional31 December
deferrals
2022
£000
£000
3,068
3,068
3,068
3,068
523
523
3,591
3,591		 Charity
2021
£000
332
3
2,549
292
809
3,985
3,068
523
3,591

17 Creditors: amounts falling due after more than one year

Consolidated
Consolidated
2022
2021
£000
£000
Loan from MetLife falling due in over 5 years
20,000
20,000
20,000
20,000		 Charity
2022
£000
20,000
20,000		 Charity
2021
£000
20,000
20,000

A 30-year loan was taken out on 14 May 2021 to enhance the long-term value of The King’s Fund investments and has been invested in line with the strategic asset allocation. The loan is repayable in full at the end of the loan period in May 2051, in the interim the interest is payable in November and May. The future interest payable is as follows:

Not later than one year
Later than one year and not later than fve years
Later than fve years
Total		 2022
£000
534
2,136
12,482
15,152		 2021
£000
534
2,136
13,016
15,686

Notes to the accounts

70

Trustees’ annual report and accounts for the year ended 31 December 2022

18 Pension schemes

The King’s Fund Staff Pension and Life Assurance Plan

The King’s Fund Staff Pension and Life Assurance Plan (the Plan) is a defined benefit scheme. The Plan was open to all employees of The King’s Fund who were not members of another scheme until it was closed to new members on 28 February 2008, as at 31 December 2022 there were 14 active members (2021: 14).

The amounts recognised in the Balance Sheet are as follows:
Fair value of plan assets
Present value of plan liabilities
Net Plan asset/(liability)
Amount not recognised as asset due to limit in FRS102 paragraph 28.22
Net defned beneft asset/(obligation)		 2022
£000
54,287
(43,662)
10,625
(10,625)
–		 2021
£000
65,031
(66,654)
(1,623)
–
(1,623)

The surplus linked to the defined benefit scheme is not considered to be recoverable and therefore has not been recognised in the financial statements in accordance with FRS 102.

The movement in defned beneft obligations over the year was as follows:
Present value of obligations at start of year
Current employer service cost
Employee contributions
Interest costs
Actuarial (gains)/losses
Benefts paid
Closing value of the plan liability
The movement in the fair value of assets over the year was as follows:
Opening fair value of plan assets
Return on plan assets in excess of/ (lower than) interest income
Interest income on planned assets
Employee contributions
Employer contributions
Benefts paid
Closing fair value of plan assets		 2022
£000
66,654
272
74
1,214
(22,479)
(2,073)
43,662
2022
£000
65,031
(10,118)
1,186
74
187
(2,073)
54,287		 2021
£000
70,473
348
73
938
(3,161)
(2,017)
66,654
2021
£000
59,982
6,038
798
73
157
(2,017)
65,031

The Plan has pension liabilities which are insured with a value of approximately £14,000 (2021: £23,000). The value of these liabilities has been excluded from both the assets and the liabilities since the liability is matched directly by an asset of equal value.

Notes to the accounts

71

Trustees’ annual report and accounts for the year ended 31 December 2022

18 Pension schemes (continued)

Total recognised in the Statement of Financial Activities:
Current employer service cost
Net interest on the net defned beneft obligation
Return on Plan assets excluding interest income
Actuarial gains/(losses) arising from change in assumptions
Amount not recognised as asset due to limit in FRS102 paragraph 28.22
Total recognised in the Statement of Financial Activities
Proportion of total Plan assets by asset class:
Equities (including property)
Bonds
Index-linked
Cash and equivalents		 2022
£000
(272)
(28)
(10,118)
22,479
(10,625)
1,436
2022
58%
32%
10%
0%		 2021
£000
(348)
(140)
6,038
3,161
–
8,711
2021
66%
26%
8%
0%

The overall expected rate of return on the Plan assets is determined by applying each asset type’s expected long-term rate of return to that asset type’s market value and calculating a weighted average rate of return over all asset types.

Actual return on Plan assets
The principal actuarial assumptions used at the balance sheet date:
Discount rate
Rate of increase in salaries
General price infation
Rate of increase in pension payments:
Service before 1 April 2000
Service after 1 April 2000
Life expectancy at 65 for
male aged 65
female aged 65
male aged 45
female aged 45		 2022
£000
(8,932)
4.80%
2.45%
2.45%
4.20%
3.05%
22.9
24.8
24.1
26.2		 2021
£000
6,836
1.85%
2.85%
2.65%
4.25%
3.20%
22.8
24.7
24.1
26.1

The King’s Fund expects contributions of £209,000 to be made to the Plan in the year ending 31 December 2023 (excluding contributions made by employees).

Notes to the accounts

72

Trustees’ annual report and accounts for the year ended 31 December 2022

18 Pension schemes (continued)

NHS Pension Scheme

The Fund contributes to the NHS Pension Scheme, a defined benefit scheme, for 7 (2021: 8) eligible members of staff as at the 31 December. In 2022 The Fund contributed £71,000 (2021: £92,000) to the scheme. The employer’s contribution rate is set by the Government Actuary at 14.4 per cent.

The King’s Fund Group Personal Pension Scheme

The Fund contributes to the Group Personal Pension Scheme, a defined contribution scheme established in 2008, for 116 (2021: 112) members of staff as at 31 December. The Fund contributed £888,000 (2021: £864,000) to the scheme. The employer’s contribution rates are double each individual employee’s contribution rate within the range from 6 per cent to 12 per cent of pensionable salary.

The pension charges for the period are shown below:

The King’s Fund Staf Pension and Life Assurance Plan
NHS Pension Scheme
The King’s Fund Group Personal Pension Scheme
Total charges		 2022
£000
187
71
888
1,146		 2021
£000
157
92
864
1,113

19 Split of assets between funds

Tangible assets
Intangible assets
Investments: Securities
Investments: Property
Net current assets/(liabilities)
Long-term liabilities
Pension fund reserve
Total funds		 Expendable
endowment
£000
–
–
124,379
14,079
–
–
–
138,458		 Restricted
Unrestricted
funds
funds
£000
£000
–
52,508
–
5
–
26,563
–
15,138
5
(144)
–
(20,000)
–
–
5
74,070		 Total
funds
2022
£000
52,508
5
150,942
29,217
(139)
(20,000)
–
212,533		 Total
funds
2021
£000
53,415
31
169,984
26,970
749
(20,000)
(1,623)
229,526

To see the comparatives for 2021 please see note 23a.

Notes to the accounts

73

Trustees’ annual report and accounts for the year ended 31 December 2022

20 Movements in funds

20 Movements in funds
Restricted funds:
DHSC with University of York
The National Lottery Community Fund
(renamed Big Lottery)
Other
Total restricted funds		 At the start
of the year
£000
(7)
(2)
(4)
(13)		 Incoming
resources
and gains
£000
402
60
35
497		 Outgoing
resources
and losses
£000
(395)
(53)
(40)
(488)		 At the end
Transfers
of the year
£000
£000
–
–
–
5
9
–
9
5
5

The contract with the Department of Health and Social Care (DHSC) – run jointly with the University of York – is to provide a fast response research and analytical facility. During 2022 we undertook eight projects, as in 2021. The contract is intended to support up to five projects per year and with these additional projects we have now used up the underspend carried forward from the previous contract. DHSC has agreed additional funding for future years in case this high level of demand continues. Projects in 2022 included a high-profile report on reducing waiting lists and waiting times, and covered topics ranging from end-of-life care to support for unpaid carers and free milk for pre-school children.

In 2018 a new grant of £449,357 was awarded by The National Lottery Community Fund to extend the Cascading Leadership programme. In August 2019, we received a top-up grant of £15,411 from The National Lottery Community Fund, bringing the total budget for this project to £464,768 and in 2021 we received another top-up grant of £29,500 bringing the total of the project to £494,268 and this included an extension of the project to April 2023 recognising the Covid-19 delays. The programme started in 2018 and £494,847 of funding had been received by 31 December 2021, which is the total income for the project. We recognised £60,190 in 2022 leaving £30,408 to be delivered and recognised in 2023.

The other grants were from Healthwatch England (£25,000) and Lloyds Bank Foundation (£10,000).

To see the comparatives for 2021 please see note 23b.

Notes to the accounts

74

Trustees’ annual report and accounts for the year ended 31 December 2022

21 Related party transactions

There have been no related party transactions that require disclosure other than transactions with the subsidiary company, KEHF Limited, as set out below.

22 Lessor operating leases

The future minimum lease payments under non-cancellable operating leases for each of the following periods are set out below.

Not later than one year
Later than one year and not later than fve years
Later than fve years
Total		 2022
£000
804
871
–
1,675		 2021
£000
815
728
71
1,614

Operating lease commitments relate to the minimum future rental income for both investment and non-investment properties.

Notes to the accounts

75

Trustees’ annual report and accounts for the year ended 31 December 2022

23 Comparative statements

23a Comparative split of assets between funds

Tangible assets
Intangible assets
Investments: Securities
Investments: Property
Net current assets/(liabilities)
Long-term liabilities
Pension fund reserve
Total funds
23b Comparative movements in
Restricted funds:
DHSC with University of York
The National Lottery Community Fund
(renamed Big Lottery)
Government furlough
Other
Total restricted funds		 funds
At the start
of the year
£000
(25)
–
–
–
(25)		 Expendable
endowment
£000
–
–
138,118
14,079
–
–
–
152,197
Incoming
resources
and gains
£000
173
48
48
5
274		 Restricted
Unrestricted
Total funds
funds
funds
2021
£000
£000
£000
–
53,415
53,415
–
31
31
–
31,866
169,984
–
12,891
26,970
(13)
762
749
–
(20,000)
(20,000)
–
(1,623)
(1,623)
(13)
77,342
229,526
Outgoing
At the end
resources
of the year
and losses
Transfers
2021
£000
£000
£000
(173)
18
(7)
(50)
–
(2)
(48)
–
–
(15)
6
(4)
(286)
24
(13)

During 2021, we undertook eight pieces of work. The biggest research projects were into primary care additional roles reimbursement scheme, evaluation of care and treatment reviews for people with learning disabilities or autism following any instances of long-term segregation (ICETRs), changing patterns of abortion and sector-led improvement.

In 2018 a new grant of £449,357 was awarded by The National Lottery Community Fund to extend the Cascading Leadership programme. In August 2019, we received a top-up grant of £15,411 from The National Lottery Community Fund, bringing the total budget for this project to £464,768 and in 2021 we received another top-up grant of £29,500 bringing the total of the project to £494,268 and this included an extension of the project to 2022 recognising the Covid-19 delays. The programme started in 2018 and £444,423 of funding had been received by 31 December 2020. In 2021 we received £49,847, bringing the total income to £494,847, of which we have recognised £404,000.

During 2021 the Fund continued to utilise the government furlough scheme to reduce losses in areas where staff who could not undertake their duties as a result of the Covid-19 pandemic.

Notes to the accounts

76

Trustees’ annual report and accounts for the year ended 31 December 2022

23 Comparative statements (continued)

23c Comparative consolidated statement of financial activities

Unrestricted
funds
£000
Income and endowments from:
Donations and legacies
608
Charitable activities
Research and analysis
629
Developing individuals, teams and organisations
4,337
Promoting understanding
84
Bringing people together
496
Total charitable activities
5,546
Other trading activities
2,203
Investments
2,680
Other
68
Total
11,105
Expenditure on:
Charitable activities
Research and analysis
4,008
Developing individuals, teams and organisations
4,850
Promoting understanding
2,853
Bringing people together
1,030
Total charitable activities
12,741
Other trading activities
1,719
Raising funds costs
768
Total
15,228
Operating (defcit)
(4,123)
Net gain on investments
2,904
Net income/(expenditure)
(1,219)
Transfers between funds
(24)
Actuarial gain/(loss) on defned beneft pension scheme
9,199
Net movement in funds
7,956
Reconciliation of funds:
Total funds brought forward
69,386
Total funds carried forward
77,342		 Restricted
funds
£000
–
181
56
12
2
251
23
–
–
274
182
58
11
12
263
23
–
286
(12)
–
(12)
24
–
12
(25)
(13)		 Endowed
funds
£000
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
229
229
(229)
15,212
14,983
–
–
14,983
137,214
152,197		 Total
2021
£000
608
810
4,393
96
498
5,797
2,226
2,680
68
11,379
4,190
4,908
2,864
1,042
13,004
1,742
997
15,743
(4,364)
18,116
13,752
–
9,199
22,951
206,575
229,526

Notes to the accounts

77

Trustees’ annual report and accounts for the year ended 31 December 2022

23 Comparative statements (continued)

23d Comparative consolidated statement of financial activities

Developing
individuals,
Research
teams and
Promoting
and analysis organisations understanding
£000
£000
£000
Commissioned work
629
2,526
19
Grants
181
56
12
Course places or event tickets
–
1,811
–
Other
–
–
65
Total income
810
4,393
96
Direct expenditure
2,432
3,264
1,446
Support departments (4a)
1,758
1,644
1,418
Total expenditure
4,190
4,908
2,864
23e Support departments
Facilities (1)
415
388
335
Communications (2)
186
174
150
Other support (3)
1,157
1,082
933
Total cost of support departments
1,758
1,644
1,418		 Bringing
people
together
£000
–
2
496
–
498
687
355
1,042
94
–
261
355		 Total
2021
£000
3,174
251
2,307
65
5,797
7,829
5,175
13,004
1,232
510
3,433
5,175

(1) Facilities costs have been apportioned based on average headcount of the various departments during the year.

(2) Communication costs have been apportioned based on average headcount of the various departments during the year.

(3) Other support departments include: Chief Executive’s Office, Finance, HR, Operations and Information Technology. Depreciation is also included within this category. The amount paid by the trading subsidiary via a management charge is excluded and has been allocated to expenditure on other trading activities. Remaining costs have been apportioned based on average headcount of the various departments during the year.

Notes to the accounts

78