Registered number.. 06780453 Chgrity number.. 1127466 Island Health Trust (A company limited by guarantee) Trustees, report and financial statements For the year ended 31 M#r¢h 2021
Island Helllth Trust IA company limited by guarantee) Contents Page Reference and admiiiistratiTre details of the ciirnpany. itb. Trustees aiid ad1'IT5 Trustees, report Trusieeg, responsibililies staiemertl Ind¢peiid¢nt audiiors, report oli th¢ financial stat¢rn¢nt5 SiaiLmLni of financial aciiwillcs Ilalanc¢ sh¢¢t io Notes io ihe fillancial statements
Island Health Trust
(A Company Limited by Guarantee)
Reference and Administrative Details of the Company, its Trustees and Advisers For the Year Ended 31 March 2021
Trustees
Mavis Wenham Jocelyn Braun Elaine Bagshaw Candida Ronald Dr Shera Chok
Company secretary
James Brown
Company registered number
06780453
Charity registered number
1127466
Registered office
Thames House Roman Square Sittingbourne Kent ME10 4BJ
Independent auditors
Alliotts LLP Chartered Accountants Statutory Auditors Imperial House, 8 Kean Street, London. WC2B 4AS
Bankers
CAF Bank Limited PO Box 289 West Malling ME19 4TA
Solicitors
Winckworth Sherwood LLP Minerva House 5 Montague Cl London SE1 9DF
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Island Health Trust
(A Company Limited by Guarantee)
Trustees' Report For the Year Ended 31 March 2021
The trustees present their annual report together with the audited financial statements of Island Health Trust for the year 1 April 2020 to 31 March 2021.
The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015).
Since the company qualifies as small under section 383, the strategic report required of medium and large companies under The Companies Act 2006 (Strategic Report and Director's Report) Regulations 2013 is not required.
achievements, and financial performance for the
year to 31 March 2021 as well as plans for the future. It also sets out the historical context of the organisation. The report from the auditors, together with financial statements for the year follow.
Structure, governance, management, and charitable status
Island Health Trust is a company limited by guarantee. It was first set up as an unincorporated entity and registered charity called the Island Health Charitable Trust, formed under a declaration of Trust dated 12 February 1992.
Island Health Trust was incorporated on 28 December 2008 and on 1 April 2009 the unincorporated Island Health Charitable Trust transferred all its assets to IHT, and IHT agreed to take on all the liabilities of the trustees of the Island Health Charitable Trust. The assets included the freehold and under leasehold interests in the property known as Island Health Centre, 145 East Ferry Road, London E14 3AY. The freehold is subject to a peppercorn lease granted to Asda Stores which expires in 2107.
Purpose and aims - who we are and what we exist to do?
s are focused on improvement of health of both the population of the London Borough of Tower Hamlets and Newham by actively participating at a primary health level. The provision of the Health Centre is clearly included within the IHT objects. It is to be noted however that IHT de subsidising public sector activities and projects, as it has no permission to do so.
Appointment of Trustees
New Trustees are appointed by existing Trustees having regard to the mix of skills and relevant experiences that the Board may benefit from. Prospective Trustees are invited to meet fellow Trustees and, if appointed, goes through an on-boarding process where they are provided with comprehensive information that includes all the legal and regulatory responsibilities of the Charity and the Trust, the operations, and the projects. This naturally also includes providing a comprehensive on-boarding to get acquainted with the aims of the charity and the responsibilities that Trusteeship involves.
Control and Reporting
Regular board meetings are conducted to keep the Trustees abreast of the outstanding performance of the Charity and the Trust, from strategic, operational, financial, and charitable activities. In between meeting, Trustees are kept informed by the COO and are engaged as and when necessary. All Trustees give of their time freely and without remuneration.
The Island Health Centre
IHT , as can be seen in the balance sheet, represents ownership of a health Centre at Crossharbour on the Isle of Dogs. In 202021, the first floor of this Health Centre houses GPs and Dentists who in turn provide a range of health and wellbeing services to the local population on the Isle of Dogs. The second floor, on the other hand, remained unoccupied for an extended period, despite numerous expressions of interests from potential lessees, aggravated by the issues around COVID-19. Thus, as can be seen in the Profit and Loss statement, income is lower than what the Trust might have wished it could be. The Trustees also now see the need to rethink about new use cases for the facility as the problem of COVID-19 has prompted companies and practitioners to rethink their office and facility use, what with increasing work-from-home schemes.
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Island Health Trust
(A Company Limited by Guarantee)
Trustees' Report For the Year Ended 31 March 2021
What we did in 2020/21
a. Regulatory
Charity Commission Investigation: Following the Charity Commission decision to discharge the Interim Managers (IMs) on the 23[rd] of March 2020, the trustees have reviewed possible next steps. The Statutory Inquiry remains open but has been placed on hold subject to regular updates from the Trustees.
b. Financial performance
i. Result for the Year .
in the Statement of Financial Activities (SofA) of these
accounts. We are happy to report that the charity has been able to successfully turnaround its financial performance from two years of consecutive yearly net deficit to a positive net surplus of £3,013 for this year. This result has been achieved by the twin approach of stabilizing costs and a slight increase in revenues.
Overall Administrative Cost Management. The Board has continued its prudent cost management this year, which it started in 2019-20. Total administrative costs were reduced dramatically from £253,167 in 2018-19 financial year to £172,216 in 2019-20, and have remained in line with expectation in 2020-21 (£175,101).
- Consulting and other non-legal professional fees . These cost items have been completely avoided for the last 2 years, leading to a savings of £37,008 from 2018-19 figures.
Rental costs. The Board has made the decision to use its own vacant facilities to conduct physical meetings when necessary and allowed during the COVID-19 times or have shifted to online meetings to avoid unnecessary expenses.
Legal fees. Inquiry and continued to incur legal fees in line with expectation to support this process.
Grants. Due to the uncertainties presented around COVID-19 in 2020-21, amongst other things, the trustees decided to pause grant giving activity in 2020/21 and focus on cost controls and improving the Island Health Centre, exploring use cases that align with its objects. The Trust is in active and advanced discussions with several parties to explore partnering in an extensive community-based health project, using the first floor of the Heath Centre as the base of operations. Our grant-giving spend decreased significantly but continued offering grants to support complimentary meds to support the provision of complementary therapies offered by the practice team to its patients. Sessions to patients are offered through GP referrals of free osteopathy, massage, and acupuncture sessions to be provided throughout the year.
Revenues. The Board continued to explore options to enhance its revenues from its main asset, the Health Centre building, limited as it may be due to the advent of COVID-19 and the resulting reduced demand for office space and similar facilities. To manage the risk of escalating costs amidst uncertainty, the Board looked mainly at options that mandate, like providing free space for social and charitable activities Unfortunately, the problems and restrictions created by the COVID-19 pandemic has prevailed and although rental income has increased slightly by 6% to a revenue of £179,474, it is at par with the 2019 levels due to the adjustments in rental payments of the dental practice, which allowed IHT to recover some of the lost rental income from the unoccupied space.
ii. Balance Sheet
The net asset and fund position remained healthy at 31 March 2021 at £3,672,646, up slightly from 2019-20 by £3,013. This is largely a result of prudent cost management as discussed in the previous section.
Fixed Asset. The value of Total Fixed Assets is slightly down due to depreciation of office and computer equipment only. The main investment property asset value is unchanged.
Cash position. Cash balances at the end of the year remains healthy at £693,993. The reduction during the year is due to timing with a significant rise in debtors.
Designated Funds in note 14 to the financial statements, which represents funds set aside to meet the costs of improvement to the Health Centre. This fund remains unchanged at £95,838.
Reserves. The trustees recognize the need to manage and mitigate its key risk of revenue shortfall and put in place a reserves policy
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Island Health Trust
(A Company Limited by Guarantee)
Trustees' Report For the Year Ended 31 March 2021
to ensure that sufficient free reserves are available to offset its main risk, which is losing tenants of the Health Centre without adequate notice. The charity therefore maintains free reserves equal to at least one year’s annual income. This would give sufficient time to find replacement tenants. As a t 31 March 2021 the charity’s free reserves (being total funds less designated fund s and less the net book value of fixed assets) amounted to £734,188 (2020: £729,629), up slightly due to the surplus for the year plus the reduction in the carried value of tangible fixed assets.
c. Strategic approach to new challenges
The Trust continues to be active in discussions to explore ways to improve and broaden the range of its activities, making sure it is relevant, impactful, and aligned with the objects. This includes looking at options for social prescribing interventions and/or education offerings for local people and service providers. There are advanced discussions with several stakeholders to explore possibilities of using some of the space towards supporting health and general wellbeing for people who live in Tower Hamlets and Newham. Whilst progress has been delayed due to COVID-19, the Trust is committed to progressing these conversations as and when possible.
What we plan to do in 2021/22
As a result of prudent cost management, the Charity remains in a strong cash position for the following year. This will enable the Trustees to explore other options following the ‘new normal’ in health centre use as part of its strategic challenge . The plan involves expanding its activities to include Newham as its beneficiary even if the health centre is in Tower Hamlets.
a. Grants
Our grants programme will remain under review, but we shall ensure we are able to continue supporting our target beneficiaries in Tower Hamlets and Newham. We will continue explore use cases for the available space that can support charitable activities. We shall continue to build upon the hard work we have put working with the HIP Community project team, despite the challenges of COVID-19.
b. Health Centre-maintenance
Using the building reserves designated fund for the health centre, the Trust is exploring building upgrades and modernization. The Charity will continue to improve the property and explore use cases that align with the Trust’s charitable mission .
c. Managing Costs and enhancing income
IHT is focused fully on proactively managing costs and performance of suppliers and partners, ensuring that the Charity gets value for money. Although significant reductions in operating costs have already been achieved since 2018-19, the Trust will continue to be managed very carefully throughout 2021/22 and explore its options around the ‘new normal’ for its use of space.
Risk Assessment
As previously discussed, the trustees have set up its reserves policy to mitigate liquidity risk, which is the risk of not having sufficient funds to cover its costs due to loss of rental income. We are happy to report that the trustees' assessment of this liquidity risk is low. Due to the nature of its operation, the risk of fraud at IHT is very low; all financial activities are manageable, with the organisation’s size being small and its complexity, very low.
Disclosure of Information to Auditors
The trustees confirm their approval of this report confirm that, so far as they are individually aware, there is no relevant audit information of which the charity's auditors are unaware; and each trustee has taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the charity's auditors are aware of that information.
Signed on behalf of the Board of Trustees on
by:
Elaine Bagshaw Trustee
Jocelyn Braun Trustee
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Island Helllth Trust IA company limited by guarantee) Statement of trustees, responsibilities For the year ended 31 lArCh 2021 The trusiccs Iiiho arc also Ihc dirLYtors of Ihc compans, for Ihc pUrSeS of company lawl arc rcsponsiblL for prLparing ihL TruslCCS' report and Ihe tinancial siaremtnis in accordance wilh applicable laii, and Uniied Kingdom Accouniing Standards (United Kingdom Generallv Accepted Aecoulliing Practice). Cornpany law requires the trust¢¢s to prepare tinancial statements tor each tinancial . Und¢r coinpan}, law., the trustees must not approve the tinancial statements unless theTr are satlsfied that th¢N- give a true and tair vieii. of the slate ot'attairs of th¢ cornpany and of its incoming SOurceS and application ot'r¢sourc¢& includiiig its incom¢ and eXP¢llditure, for that period. In preparing th¢s¢ financial st4tem¢nts, th¢ twsttt5 ar¢ requir¢d to.. select suitable accouiiiing policies and Ihell applN them consistentl}'; ob5eri'e th¢ ill¢thod5 aiid principles of th¢ Ch4ritle5 SORP IFRS 1021: Inake jud¥in¢iiLs ld accounting e.4tirnate4 Ilial ar¢ re&4(inabl¢ aiid prud¢nt', staiL whLihLr applicablL UK ALLounting Standards IFRS 1021 havL bLLn followcd. SLibjLCI to an), rtlalLrial dtpartLifLS diseloscd and txplaintd in tht financial siaiemenis., prepare the tiiiancial statemeiiis on the going concern basis uiiless it is inappropriate to presurne that the coinp&ny %i.-ill continue in business. 'l-he tru5t¢¢% are r¢spon5ibl¢ for k¢¢ping adequat¢ accounting r¢cords that ar¢ sufficient to 5hoiv and ¢xplain th¢ compan}'s transactions and disclose i¥ith rea4Dnahl¢ a¢curacy' al any tiin¢ th¢ finanLiJI tN).4ili(In of the cDtnpan} and ¢nabl¢ th¢m to ¢nsur¢ that the fin1claI %tsLetnenl% LlTr[npl with the C1)nipLeS.4ll 201)C). The}. are al%1) re%pi)n4ible f()r %afe¥uardiiig the ()f the Llltnp}. dnd henLe fi)r takinx reliable steps (vr Ihe preventiLTrll deleLliun of (laud and uiher irTeguldrilies. Approvcd bv ordcr of Ihc mcmbcrs of Ihc board oftrusiccs and signLd on its bLhalf b}". Eline BgshAIV Trusicc Jotelyn BrAurt Date.. 3010312022 Pagc 5
Island Helllth Trust IA company limited by guarantee) Independent auditors, report to the Member5 of Island Health Trust Opinion Wc hai'c audilLd IhL financial sliiiLmLnis ofisland Hidlih Trusi IthL'LhariiablL company'l (01 Ihc r cndcd 31 March 20?1 i%'hiLh comprisc Ihc SiaiLmLnt of finaneial actil11cS, Ihc BalancL shcci. thL SiatLmLnt of cash floivs and Ihc rLlaicd notis. including a summar} of bignificani accounting licIt5. The financial reporting frameiiork Ihai hab been applied in ihtir preparation is applicable law and Uniied Kiiigdom Accounting Standards, including FinaiiLial Reporting Standard 102'The Financial Rtptsniiig Siandard applicable in the UK aiid Republic ot Ireland, (Llnited Kingdom GenerallN Accepted Accountiiig Practice). In our opinion the ffinaiicial staieinents.. give a iruc and fair iicw of Ihc siaic of ihl chariiablc companv's affai as ai 31 March 2021 and of its incoming YsourC£S and application of resoiircts, including its incoine and expenditure tor the }-'ear ihen ciided., have b¢¢n properlN' prepared in accordaiice ivith United Kingdoni ti¢iierall}, Accepted Accouiiting Practice,. and liaN'e be¢n prepared iii acci)rdanL¢ willi the requir¢rneiit4 ()f the CDtnpanie% Act 2006. Basis for opi]Jion Il'c conducted our audit in accordance ii'ith Iiiternational Standards oll Auditiiig IIIKI IISAS IUKII and applicable la. Our r¢spoiisibiliti¢s uiider those Standard5 are further described iii tlie Auditors, responsibilities tor the audit of the finallcial stateill¢iits s¢ction of our rtport. W¢ ar¢ ind¢p¢iid¢nt of th¢ charitable cornpan) in accordaiice i¥ith the ethical r¢quir¢rnent5 tliat ar¢ relevant to our audit of th¢ tiiiancial stat¢ment5 111 th¢ Ilnited Kiiigdom. includiiig th¢ Fiiian¢ial Reportiiig Couiicil's b.thical Standard. and liave fulfilled (iiir (Ith¢r ¢thical r¢spon&ihilities iii accordJn¢¢ willi th¢s¢ r¢quir¢rnent5. W¢ beli¢Tr¢ that the Judit e.idence w¢ hav¢ obtain¢d is Conclusions relxtithg tts going cortcern In auditiiig the tiiiancial statem¢iits, hai'¢ coiicluded that the trust¢¢s' of the going coiic¢rii b15 of accountiiig iii the preparation of th¢ financial 5tat¢rn¢nt5 is appropriate. IIu5ed oli th¢ i¥ork V¥¢ hav¢ p¢rfonned. i¥¢ huv¢ not identified aiiv material uncertainties relatiiig to ei¢nt5 or conditioiis thaL individually or LDlleLlii'el)'. L&4t %i¥iiifiLant d<?ubi (Trii Ilie Lharilable cDtllP<ini's ability lo continue as J g(iin¥ Loncern for a p¢riod tit-Jt least tN%'elve tni)nth.4 trotn when the finanLial %tdtetnent% are duthiiri%ed ti)r i%%ue. Our resptsnsibililies the respongibilitieg ofthe trusiees wilh TespeLi 10 goirtg Loncem are desLribed in the [eleant seLtions of Ihis rLPOrt. Otber informtion 'l-h¢ oth¢r infortnation coinpri5e5 tli¢ iiifonnation iiicluded in the Annual r¢port oth¢r than tht tiiiancial stat¢mtnt5 and our Auditors, r¢pvrt thereon. The Iste¢S ar¢ Te4pi)nsible for the other infi)rmali<?n cDnlain¢d i¥ithiii the Aiiiiual r¢port. nur iipini(iii Ilie finaiicial rorrn or5u[#nLe Ll)llLlu%ii)11 Ihetei)n. Our re%p()n%ibilit} 14 1() read Ihe i)Iher infurtllaliun iinti. in duing %u, L()n%ider whethei Ihe Iiiher inrormaiion is matifiillly inconsisicni wilh Ihc financial siatimcnis or our knoi¥lcdgi obiaincd in ihi COLifsL o(thL audil. or othtrwisc app-ars io bL matLriallv missialL. IIMC idcniifs such maiLrial inLonsistLnciiS or apparcni maiLrial missiaiLmLnis. WL arL rLouirid to dtnIn¢ whethtr ihib giTres rise ro a material inissiaiemenr in iht financial siatemenis ihtmseli'es. If. bastd on Ihe work ,¢ ha¢ performed. ,¢ conclude that there is a material missiatement of this other information, we are required to repon thai fact. We have lloihing to report in this regard. Opinion on other matters preseribed by the Companies Act 2006 In our opinion, bascd on thL ¥vork undcrtakL in tht COLifsL orthe audil.. th¢ informatioii giv¢n in the-l rust¢es' report fpr the fiiiancial y¢ar for which th¢ financial 5tat¢m¢nts are pr¢par¢d 15 CQllSlSt¢nt wilh Ihe finanLldl %talemenl%. Ihc Trusiccs, rcport has bcLn prcparcd in accordancc wilh appliLablc Ilgal rcquircmcnis. Pagc 6
Island Helllth Trust IA company limited by guarantee) Independent auditors, report to the Member5 of Island Health Trust Ico]Jtinuedl Matters on which we are required to report by exception In thL lighi of our knowlcdgc and undLrsianding of Ihc chariiablL company and its Lnvironmcni obtaincd in Ihc courst of Ihc audil, wc havi not idLnlifiL matLrial missiaiLmLnts in ihc TrLlStLLS' report. Wt have noihing io report in respect of the folloing Matte in relaiion to which Companies Act 2006 requires us to report io wou if, in our opiiiion.. ade4uaie accouniirtg recoTds hai'e rtoi been kepi, or returns adeqLiaie (or our audit hae noi been receiied from branches noi visiied b}, us., or the tiiiancial staternents are not iii agreement with the accounting records and returns., or certaiii disclosures of trustee5' r¢mun¢ration 5p¢cified b), law ar¢ not mad¢,' or e have ni)t reLeived all the inf()rmdtii)ii expltiL}n% li'e reqiiire ftir i)ur Judit.. c)r thL trusiccs wcrL noi cniiilcd 10 prcparc Ihc finartcial stdicmtnis in aLLord&ncL wilh Ihc small companiLS rcgimt and take advantage of the small companies, exeinptions in preparing the Trustees, report and from ihe requiremeni to prepare a Sirategie report. Responsibilities of trustees As Lxplaincd morc fLilly in thi TrLISILXS' rLsponsibiliiics SlalLmLnt, IhL trusiccs (who arc also Ihc dirLctors of Ihc chariiablL companv for Ihe purposts of eompanl lawl are responsiblt for iht preparation of iht financial staiemenis and for king saiibfied thai ihey give a trut and fair i'iew. and for such inienial Lontrol as Ihe Irusitts dettrmiiie is Jiecessarn, to enable the preparaiion of financial siaiemenis that are tree troin inaierial inisbLgteineiii, Ivhethtr due to traud or em)r. In preparing the tiiiancial slaternents, tlie irustees are resp0115ibl¢ tor assessing the charitable coinpanTr's abiliti. to coiiiinue a5 a goiiig coiictrii, disclosing. as applicable. illatt¢rs r¢lat¢d to goiiig coiic¢rn aiid using the going coiicern basis Ot accounting unless the trustees eithtr intend to liquidat¢ th¢ charitable compan} or to c¢a5¢ op¢ratioiis. or liave no realistic alt¢Tnatii'¢ but lo do 50. Auditors responsibilities for the audi¢ of the finaTJcial statements Our objectives are 10 obtaiii reasonable assurance aknut whethtr Ihe financial sthtements as a ivhole are free froin maierial inisstateinen( hetlier due to t'raud or error. aiid to issue ali Aiidiiors, report that includes our opillioll. Reasonable assurance is a high leTr¢l ot. assurance, but is not a guarantee that an audit conducted iii accordance ii-.ltli ISAS IUKI i%'ill alwal's detect a material missiaternent when it ¢Y1515. MisStal¢inents can arise t'rom fraud or error and are c0115ider¢d iiiaterial it.. indii'iduall) or iii tli¢ aggregate. they could reasonably be ¢xp¢ct¢d to intlutnc¢ th¢ ¢coiiomic decisions of us¢rs taken on iht b15 Qt tlie5e finaiicial stateiiients. Irr¢gulariti¢s, includiiig fraud, are iiistanc¢s of non%ornpliaiice 14.ith laws and r¢gulatioii%. W¢ d¢sign proc¢dure5 iii line ivith our r¢sp(iii&ibilities. outlin¢d ¢iboTr¢. ti) det¢¢t mJterial tnitsstaletneiilb in r¢%p¢¢t i)f in-¢¥ularili¢.K including fraud. The ¢xt¢nt to which OUT pii)Ledure% are Ldpdble (if deteLtIll8 i[re¥ul111e5. ItiLluding frauli 1% detailed belc)w.- Olir approach io ideniify'ing and assessing ihe risks of material missLgtemtni in respeth of irregulariries. including fraud and non- compliance wilh laws and rtgulaiions, was as follows.. the engagement partiicr ¢iisur&1 that the engageineiii tearn coll¢ctiTrel}, had the appropriaie comp¢tenc¢. capabilities and ski115 to identifs or recognise noii-coillpliance with applicable laws and r¢giilations'. 1¢ identified the 14M's and regulati0115 applicable to the coillpaiii. through discussions ivith dir¢ctOT5 and oth¢r rnanag¢inenL aiid from our comiii¢r¢ial knowltdg¢ aiid ¢xp¢ri¢nc¢ ot tlie charils. s¢clor e f(ILiised on specific lai¥s and regulJtiiin% wliiLli i¥e cDn%idered lial'e a direct tnaleriJl effect (iii the financial statetnents or the i)perJlii)ns (If the Lciinpdlly. iiicliidin¥ the Cumpanies ALt 2(M)6, ch1114 Act 2011. LLXdtii)n legi%ldliuii datd PTllteL*iun, dnli-bribeTr. ernplÉTrvrnent legi%latii)n-. WL assLSSLd IhL cxlcrtl ofLompliancc wilh Ihc laws and rcgulaiionb idcrtlificd a't Ihrough making Ln4uifiLS orrnanagctncrtl idcniificd laws and rcgulaiions WLr¢ communicatid wiihin thc audit tiam rcgularls and ihL tLam rcmaincd alcrt to insiancLS of non-complianLe throughoui Ihe audit. We assessed the siisc¢ptibilits' ot'the coinpany s tinancial statements to material missiaiemellL including obtaining an understaiiding ot. how fraud Inight occur, by.. making enquiries of Inaiiagement a5 to wher¢ theN consider¢d ther¢ was susc¢ptibility' to fraud their k'noivl¢dg¢ of actual. Pagc 7
Island Helllth Trust IA company limited by guarantee) Independent auditors, report to the Member5 of Island Health Trust Ico]Jtinuedl susp¢cled aiid alleged traud., C0115id¢ring the inttriial controls in place to Mitigate risks of fraud aiid non-compliance with law'5 and r¢gulatl0115: aiid uiider5tanding th¢ design of the company's remuii¢ration policies. To addr¢%% th¢ ri%k af fraud through [nlgement bia% oN'¢rrid¢ (If control.8. IN'¢.. performed anal)'IiLal prLTrLedures iLTr idenli()' all unLisual 01 unexpected relaiionships-. tLsicd journal tniiiis 10 idtniify unusual tranellott asscsscd iihcihcr judgcmcnis and assumptions madL in dcicmiining Ihc accounting LsiimatLs wcrc indicaiivL of poicniial bias. and invebtigated the rdtionalt behind significant or unusual transactions. Audil r¢sportse lo nsks i¢lenlified.. In r¢spoiise to the risk of irr¢gulariti¢s and non.compliance M'ith laiv5 and regulatioiis, de5igiied procedures which included. but w¢r¢ a¥reein¥ finlLIa1 4talernent di4LI()%ure% Ii) under11n8 %uppi)rtin8 d()LUtnenlation-. enquiring of tnanagetnenl 10 aLlual and tN)tential liligaiiun and cldimg ThLr¢ ari inhLrLni limiiaiions in Olir audit proccdurcs dcscribcd a¢. ThL morL rL)novcd Ihosc laws and rcgulaiions arc Irom financial IransaLiions, Iht less likelw li is thai ive would beeome aware of non-compliance. Auditing siandards also liinit ihe audii procedures required to idciiiiti, non-compliance wilh la5 and regulations to enquir), ot'the directors aiid other rnanag¢m¢nt aiid iht inspection of r¢gulalor%' aiid legal correspoiidence, it'any. Material Ini55tat¢m¢nts thai aris¢ due to fraud can be harder to detect than those tliat arise from trror as they maN ini'oli'¢ d¢liberat¢ A t'urther d¢4cripliiin lif iiur re4pniisibilities fnr the audit of the finaiicial ststetnenl& is located i)n th¢ Financial R¢porting Council's web%ite at.. wivw.frL.I)I -uWaudili)r%re.4 Use of our report This report is made sol¢lN to tlie charitabl¢ compan>"s member5, as a bod),. in accordaiicc with Chapter 3 ot Pan 16 of the Companies Act 2006. ()ur audit ivork has be¢ii und¢naken so that i%'e might state to the charitable cornpan)'5 memb¢r5 thos¢ matt¢rs ar¢ requid to stat¢ to Ih¢in in an Auditor5, r¢port and for no oih¢r purp05t.-l o th¢ fu11¢5t ¢xt¢iil p¢nnitt¢d lai¥. w¢ do not acc¢pt or &s8urn¢ r¢sp(iii%ihility to dn}Iine lither thali Ilie charitabl¢ ¢(1]np1} and its mem1[. a body. flir iiur audit work. for thi4 retmirt, Dr for th¢ ()pinii)ns ive have liirtned. Slyl_ Stephen Meredith FCA DchA Isenior statutory auditor) Alliotts LLP Charicrcd ALcountsni Siaiiitory.4udiiors Imperial House 8 Kean Sireet Loiidon 'C2B 4AS Datc.. 31 March 2022 Pagc 8
Island Helllth Trust IA company limited by guarantee) Statement of financial llctivitie5 (incorporating inco]]]e llnd eipendilure arcounti For the vear eJ]ded 31 Mllrch 2021 Unre5tric¢ed funds Totsl funds lofal fiinds 2020 2021 2021 Note Income from: 179.093 381 179.093 381 169.672 Invesiinents Totlll income 179.474 179.474 171.111Tr9 Expenditure on: Granis pavable SLlPPOrt costs 760 760 24.413 175,701 175,701 172.216 Totlll expenditure 196.629 Net movement in fllnds before other rtcognised g*ins 3,013 3,013 a5.620) Other recognised gain5: Gaiiis on revaluation ot'tixed assets 592.500 Net movemertt irt funds 3.013 3.013 566.88Q Retothcili2tion of funds: Total fLind4 bri)u¥hi fuTrvard N¢1 mov¢rnent in funds 3.669.633 3.669.633 3. 102. li3 566.&8Q 3.013 3.013 Total funds earried forward 14 3,672.646 3,672.646 3,669.653 The Siatement o( firtancial aLlivilies includes all gains and losses reLognised in Ihe year. ThL noiLs on pagLS I I to 18 lorm pan of ihcse financial siatLmenis. Pagc 9
Island Helllth Trust IA company limited by guarateel Registered number.. 06780453 Balarjce Sheet AS at 31 Mar£h 2021 2021 2020 Note Fixed assets Tangible assets InvcsimLnt propcrty 10 120 1.666 2,842.500 2.842,500 2.842.620 2,844. 166 Current a55ets Debtors 12 ?63.454 iO,895 Cash at bank and in hand 693.993 906,82) 957.M7 957, 720 CTedilors". amounts fJlling due within on¢ v¢ar 1127,4211 (132.253) Net current assets 830.026 815.467 Total net a55et$ 3.672.646 3.609.653 Charity fund5 Restricted tunds Unrestricted tunds 14 3,672.646 3.609.635 Total funds 3,672.646 3,669.635 The trusieeg aLknowledge their regpun5ibililies Lornplying iviih the teciuirernents ufihe ALI wilh respeLI 10 aLLuuntirtg reLords and prcparhiion orrinancial SlalLmLmts. ThL financial siaicmcnis havL bccn prcparcd in aeeordancc with ihc provisions applicablc 10 cniiiics subjcLt io ihL small companics regitne. The financial sthtements '¢re approved and authorised for issue bN the trustees and signed on their behalf bN'. Elaine Bagshaw Trusiee Jo¢elyn Braun Trustee Date.. 3010312022 'I"he notes on page5 1 I to 18 form part of th¢5e fiiiancial statement5. Pagc 10
Island Helllth Trust IA company limited by guarantee) Notes to the financilll staten]ents For the vear eJ]ded 31 Mllrch 2021 General information Island Health Trust is a cliarithble coillpaiiv lirnited b), guaraiit¢¢. register in Eiiglaiid and Nl'-ale5. Its r¢gist¢r¢d office is Tham¢s I louse. Roinan Squar¢. Sittingbourne. Kent, MF.10 411J.'I he In¢mb¢rs of the coillpaii). are the trust¢¢s nained on pag¢ Accounting poliries 2.1 Basis of prepartion of fJnAnciI stAtementS The finaiici81 siaieinenis haTre bten prtpartd in accordance wilh the Chariiits SORP IFRS 1021 ALcouniing and Reporting bN Chariiieb.. Siaiemeni of Recommended PraLiice applicable lo chariiies prepariiig their aceoullts in accordance i¥ith ihe Financial Reporting Standard applicable in the UK and Republic ot'lreland IFRS 1021 letlectii'e l January 20151, the Fiiiaiicial Reporting Staiidard applicable in the UK and Republic ot. Irelaiid IFRS 1021 and the Companies Act 2006. Island Healtli Trust Ineets the definition of a public benetit ¢iitity under FRS 102. A55et5 aiid liabiliti¢s are initiall>' recogni5ed at historical c05t or transaction valu¢ uiil¢ss oth¢TWiS¢ Stated iii th¢ r¢l¢vaiit accounting policy. 2.2 Income All incorn¢ is recDgni.4ed once th¢ CO[npan entitletnenl to th¢ incorn¢. it is probabl¢ that th¢ iiicome ivill b¢ r¢ceived dnd the nI)Unt É)f iiiLI)tne reLeivable Ldn he tnea%ured relidbly. 2J Expenditure ExpcndilLifL Is rccogniscd oncc thLYt is a Itgal or Lonsiructivt obligaiion io transfcr LconomiL bL'ncfii 10 a Ihird party. il is probablL thai a iransfcr of cconomie bcncfjts ,111 bL rLqLiircd in SiiilLmLmt and Ihc amount of ihc obligaiion can bc mtasUrl reliabl>. Expendiiure on charirablt actiN'ities is incurred on directl>. undertaking tlie actii'iiies which further the compan} s objeciives. as %i.-ell as anN- associated suppon cosis. Grants pavabl¢ are charged iii the Near ivhen the otler is made except in those cases w'here the offer 15 conditional, such grant5 beiiig recognised as ¢Np¢iiditur¢ ii'hen the coiiditioiis attaching are t'ulfilled. 6raiits offer¢d subject to coiidition5 wliicli hav¢ not b¢¢ii met at th¢ >'ear end ar¢ iioted as a commitment, but not accru¢d as ¢xp¢nditur¢. 2.4 Tangible fixed a55ets depreciation T&igible fixed asseLs costing £5ao Dr more are Lapitslis¢d and recognis¢d M'hen futur¢ ¢coiiotnir b¢n¢fits ar¢ PTi>bable (ind the Ll)sl iir Vdlue uf the dtst he tnea%ured relidbly. Tangible fixeli a%%el% are inilially teci)gni%ed Éll Lust. After reL(Trgniliun. Iiiider the LO51 mudel, tangible fixed a%%ets' are measurL ai Los1 ILSS aLLumulaiLd dLpfLciaiion and accumulaicd impaimicrti losscs. All Losls incLirrLd 10 bring a iangiblc fixed assct inio its intcndd ivorking condition shoiild bc includcd in Ihc mcasLircmLmt of eosi. Ai each rerting date ihe Compan assesbes M'herher ihere is an), indicaiion of impairmeni. If such indication exists, tht recoiierable amoiint of the assei is determined to be Ilie higher of its fair N'alut less Losts to sell and lis Tralue in use. An impairrnent loss is recognised whert ihe carThing ainount exceeds the recoverable amouni. Depreciation is cliarged so to allocate the cost ot'tangible fixed assets less their residual valu¢ Otr their esiimated uset'ul IiTr¢s. using the straighi-lin¢ rnetliod. l)¢pr¢ciation is prolded on the folloiving ba51S'. Offic¢ ¢quiptn¢nt Cotnputer equiptnent 25d/. 33d/. Pagc 11
Island Helllth Trust IA company limited by guarantee) Notes to the financilll staten]ents For the vear eJ]ded 31 Mllrch 2021 Aeeoullting policies (continued) 2.5 Investments -h¢ inve5tm¢nt prop¢rty 15 included at tair valu¢. Gains are r¢cogni5¢d in the Stat¢in¢iit of Fiiiancial Activitie5. 2.6 Financial instrun]ents The cDtnpan} ()iilv financial assets and finJnLldl liahilitie% i)f J kiiid that qualif h&siL fiiianiial in.4t[net$. B&si finanLial in%trutnent% dre inilidllv reLI)¥iii%ed dt traii%aLlii)n Nalue and.4ub%equenilN tnea4ured al their %eltletnenl Vdlue iiiih Ihe excepiion ofbank ILVdllS IvhiLh are subsequenil), measured ai atni)rtiseLi Lost using the e(feLlive inieresi meihod. 2.7 Fund *cttsuntirtg GcnLYal funds arc unrcsirictcd flinds Ishich arc availablc for USL ai ihc discrciion of Ihc irusiccs in furihcrAncc of ihc general objectives of ihe compan>. and which have noi been designated for other purposes. Designaied fiindb coinprise unrestricted tunds thai haTre been sei aside by the Irusiees for particiilar purposes. The aim and use ot each desigllated t'und ib set out in ihe iiotes to the tinancial siatemellts. IncoTne from charitsble activitie5 Unrestricted funds Total fund5 Tofol flind.¥ 2021 2021 2020 Rental inLome 179.093 179.093 169.612 AnL71v.Fis nf2n2Q iniL71 hv fynd 169.612 169,672 Investment income UrJre5tricted funds Total fund5 Tofol fiinds 2021 2021 2020 Bank inteTesi 381 381 1.337 Analvsis of2n2Q iolL71 bvfvnd 1.337 1,337 Pagc 12
Island Helllth Trust IA company limited by guarantee) Notes to the financilll staten]ents For the vear eJ]ded 31 Mllrch 2021 Analy$is of grants Grants to InstLtutions Total fund5 Tofol flind.¥ 2021 2021 2020 Grants pa)'able 760 760 24.4J3 rntal 2n2 24.413 24,413 The compan!, has made the following mat¢rial grants to institutions during the J¢ar.' 21121 21)20 Name of IstitUtion Food ALadcmv UK Limiicd 17.573 Island Hedlih PraLIILe 760 6.,94Q 760 24.413 Analysis of expenditure on ctlaritsble activities Summary by fund type Unrestricted funds Total funds lofol flind.¥ 2021 2021 2020 Pwtn()le the provisiun uf prirnary health LOTe 176.461 176.4C)I 196.029 AnL71v.FiS of2n2Q iniL71 b fynd 196.629 190,029 Pagc 13
Island Helllth Trust IA company limited by guarantee) Notes to the financilll staten]ents For the vear eJ]ded 31 Mllrch 2021 Analy$is of eipenditure by activitie5 Grant funding of activitie5 Total fund5 Tofol flind.¥ Support costs 2021 2021 2021 2020 Promoie the prol'ision ufprimary healih LdTe 760 175.701 176.461 196.629 rntal 2n2 24,413 172.216 196,029 Analysis of support costs Total funds 2021 7oial fifnds 2020 D¢pr¢riation .x¢Cutie s¢rvic¢s Protessional ttis 1.546 34.068 1.546 48.4iO 15.110 21.284 IT equipmeni and support Alidit fLXS 950 2.327 3.700 Insurance 4.95? 839 4.9i2 1.192 Public sector and Charit), Comtnission engagement gervice cliarges PropertN' maiiiiejiallce 64.451 61.4¥9 25.000 175.701 172.216 Audi¢or5' remuneration 2021 2020 Fees pa}'able to the company's auditor for ihe audii ot'lhe compaiiv's anniial accounts 4.000 4.000 Tru5tee5' remuneration and expense During the year: trustees reLeived &iv retnuneiatiuii LTrr uther benefits 12n2Q- LI'JL). Durirtg ihe Year ended 31 March 2021. no trusiee expenses have been incLirred 1202Q- £.I'JL). Pagc 14
Island Helllth Trust IA company limited by guarantee) Notes to the financilll staten]ents For the vear eJ]ded 31 Mllrch 2021 io. Tangible fixed assets Offite equipment Computer equipment Total Cost or valuation At l April 2020 481 5.175 5,656 Ai 31 Mareh 2021 481 5.175 5.656 Depreciation At l April 2020 Chargc for Ihc }car 240 3.750 3,990 1,546 .425 Ai 31 March 2021 361 i.175 5.536 Net book value At 31 March 2021 12() 120 AI 31 AIL7rch 2020 241 1.425 1.666 Investtnent property Freehold inTrestment property Valuation At l April 2020 2.842.500 At 31 March 2021 2.842.500 The Iriist Ott thL frcchold of land on Ishich Ihc Hcalih Ccnirc is siicd and thL adjoining land cxicnding 10 ihc Easi Fcrri, Road. This frtthold, hoi%-.ever, is bubjeci 10 a Itase 10 ASDA siores expiring on 15 JUIN 2107. In iurn ASDA Slib-lease back io Ihe trust that part of the land on which the buildings and car park are sited. This Su[caSe expires oll 14 Julw 2107. The trustees haTre concluded that it is appropriate to include tlie carr>'ing valu¢ of the investineiit propeth, at £2.¥4in based oli the most rec¢iit tormal i'aluation r¢ceived ljaiiuarn. 20211. The tru5te¢s b¢li¢i'¢ that this is the best current Use e5tiinat¢ ot the Inark¢t i'alu¢ as at.1 l March 2021. 1 h¢ historical cost ot-tlie iiive5tin¢nt PTQP¢rt}i is £717,680. As IHT iiitend% t() rehuild the health Lentre in the next five l() eight ye_s, a neil. valuatii)n of the ld i)htdined t() iiifi)rrn the p()lential (i)r (le1L}Prnnt. A% expected, the i'aludti()n (If the Idnd is 5i¥nifiLanil} higher th the alue uf the Lurrent Health Centre building. Ha¥vever. the lease arrartgernent %%'iih .4SDA %vill need to be considered and Mill eonsidernbl). reduLe Lhe rcmaining ILIC 10 IHT. IHT will coniinuL 10 rcport irAnsparcnily and openly on ihc progrcssion ol an> nLw Hcalih CLntrc building proposals. Pagc 15
Island Helllth Trust IA company limited by guarantee) Notes to the financilll staten]ents For the vear eJ]ded 31 Mllrch 2021 12. Debtors 2021 2020 Trade dehti)rs 45.675 5n.89i C)thtr dtbtors 217.779 763.454 5r).¥9i 13. Creditsbrs.. Amounts fAlling due within one ye*r 2021 2020 .1 rade creditors 64.817 632 Other taxaiion and social securi 787 Other creditors 6.241 Accriials and dcfcrrcd incomc 126.634 60.563 127.421 132.2i3 Included above is d¢terr¢d r¢iital incorn¢ of £38,063 (2020- £38,1)65). Pagc 16
Island Helllth Trust IA company limited by guarantee) Notes to the financilll staten]ents For the vear eJ]ded 31 Mllrch 2021 14. Statement of funds Statement of fullds- current year Balanfe at I April 2020 BalaCe at 31 March 2021 Incon]e Expenditure Unrestri¢ted funds De$ign#ted funds Fabric fund 95.838 95.1138 General funds Accuinulated g¢neral fund Rewaluatioii reserve 1.448.975 179.474 1176,4611 1.451.988 2,124.¥?0 2.124.82 3.i73.795 179,474 1176.4611 3,576.808 Totlll Unrestricted fund5 3,669.633 179.474 1176.4611 3.672.646 Tlie irust¢¢s set ld¢ a sum as a desigiiated'tabric fuiid. in order to meet ihe costs ot. IinprotM¢nrs to th¢ Health Centre. 'l-he Tevaluation reserve relat¢s to th¢ incTea5¢ in tair valu¢ of th¢ inve5tin¢nt propertTr. Statement of prior year Balance at l Aryil 2n19 GL7inSi BLTIll¢¢ L71 ILai.F8.F) 31 .Ilorch 2020 JncDMe Expenditure TrL7nsfe.l Unre5tric¢ed funds Designited funds 'abric fuiid 120.838 125.nno) 95.838 GenerAI funds ALLUtnulated general fiinli R¢valuatlOll Te5¢rv¢ J.449,59% 171.1)Q9 (196.629) 25.1)INI J.J4,9.97i 2. 124.82 l.i32.320 i92.500 2.981,915 171.009 (190,629) 25.000 592,iOO 3.)75. 795 Totxl Uthrtstritttd funds 3.J02, 755 171.009 (196.629) 592,500 5,669.633 Pagc 17
Island Helllth Trust IA company limited by guarantee) Notes to the financilll staten]ents For the vear eJ]ded 31 Mllrch 2021 Analy$is of net assets between funds Analysis of net assets between funds- current vear Unrestricted fund5 funds 2021 2021 TanEiblL fixLd assLts Inve%lrnent property Current asset i?0 120 2,842.500 9i7.447 2.842.500 957.447 Creditors du¢ iithiii on¢ N'ear 1127,4211 TotAI 3.679 646 3,672.646 Analysis of net assets between fund5- prior )'ear lJp2resiYicfed Tofol fiitTds 2Q2Q 2020 Tangible fixtd assets InvcsimLnt propcrty Current 1,666 2.842,500 9i7, 720 (132.253) 1.666 2,842.5QQ Credilors du¢ iithin on¢ }'¢ar 1132.253) Total 3.669,6.13 -1,669.633 16. r*iember5' liability EaLh tnetnbei of Ihe Lhariiable Lompanv unlieriakes to eortlribuie 10 ihe assets of Ihe eotnpanj in the evenl of il being 'OUrtd up whilc hclshL IS a mimbLr. 01 wiihin onL )car aftil hc.'sht CLasLS io bL a mLmbLr. such amoLlrtI as ma) bc rcquirLd, noi cxcccding £10 for Ihc dLbts and liabiliiiLs Loniraciknd bcforL hclshL LCaSCS 10 bc a mcmbcr. 17. Related pArty trin$8etions The companN has noi tniered into ally related partj tranSalon during the >ear, nor are there an>. outstanding balances owing b¢tNTr'ttn related parties alld ihe coinpany at 31 March 2021. 18. Post balance sheet events In the period following 31 March 2021. tlie trust reached a Kttl¢rn¢nt in coiiiiection with an oiigoiiig s¢n'ic¢ proi'ision dispute, for ivhich there wa5 an iiiflow of fuiids iiito th¢ trust. Pagc 18