**Registered number: 06780453 Charity number: 1127466** 

## **Island Health Trust** 

**(A company limited by guarantee)** 

**Trustees' report and financial statements** 

**For the year ended 31 March 2023** 



## **Island Health Trust** 

## **(A company limited by guarantee)** 

## **Contents** 

||Page|
|---|---|
|Reference and administrative details of the company, its Trustees and advisers|1|
|Trustees' report|2 - 5|
|Trustees' responsibilities statement|6|
|Independent auditors' report on the financial statements|7 - 9|
|Statement of financial activities|10|
|Balance sheet|11|
|Notes to the financial statements|12 - 19|





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## **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 2023** 

|**Trustees**|Mavis Wenham|
|---|---|
||Jocelyn Braun|
||Elaine Bagshaw|
||Candida Ronald|
||Dr Shera Chok (resigned 19 June 2023)|
|**Company registered number**<br>06780453<br>**Charity registered number**<br>1127466<br>**Registered office**<br>Thames House<br>Roman Square<br>Sittingbourne<br>Kent<br>ME10 4BJ<br>**Principal operating**<br>**office**<br>Island Health Centre<br>145 East Ferry Road<br>Isle of Dogs<br>London<br>E14 3BQ<br>**Company secretary**<br>James Brown<br>**Independent auditors**<br>McCabe Ford Williams<br>Chartered Accountants<br>Statutory Auditors<br>Building 1063<br>Cornforth Drive<br>Kent Science Park<br>Sittingbourne<br>Kent<br>ME9 8PX<br>**Bankers**<br>CAF Bank Limited<br>PO Box 289<br>West Malling<br>ME19 4TA<br>**Solicitors**<br>Winckworth Sherwood LLP<br>Minerva House<br>5 Montague Cl<br>London<br>SE1 9DF||



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## **Island Health Trust** 

## **(A Company Limited by Guarantee)** 

## **Trustees' Report For the Year Ended 31 March 2023** 

The trustees present their annual report together with the audited financial statements of Island Health Trust for the year 1 April 2022 to 31 March 2023. 

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). 

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. 

This Trustees’ Report provides an overview of the charity’s activities, developments, achievements, and financial performance for the year to 31 March 2023 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 follows. 

## **Structure, governance, management, and charitable status** 

Island Health Trust is a company limited by guarantee and a registered charity. It is governed by its Memorandum and Articles of Association dated 18 December 2008.  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?** 

Island Health Trust’s (IHT) objects are focused on improving the health of both the population of the London Borough of Tower Hamlets and Newham by actively promoting the provision of primary health care including promoting the medical well-being of residents and visitors in the beneficial areas of Tower Hamlets and Newham. The Directors shall not apply any part of the Charity’s funds directly in relief of public funds but may assist in supplementing public funds. 

## **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, they go through an onboarding 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 onboarding with directors receiving an induction pack in line with Charity Commission guidance, to get acquainted with the aims of the charity and the responsibilities that the 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 meetings, Trustees are kept informed by the COO and are engaged as and when necessary. All Trustees give of their time freely and without remuneration. 

## **Public benefit** 

The trustees have referred to the guidance in the Charity Commission’s general guidance on public benefit when reviewing their aims and objectives and in planning future activities. In particular, the trustees consider regularly how planned activities will contribute to the aims and objectives that have been set. 

**The Island Health Centre – The Trust’s key asset and source of income** 

IHT’s main asset, as can be seen in the balance sheet, represents ownership of a Health Centre at Crossharbour on the Isle of Dogs. The first floor of this Health Centre continues to house GPs and Dentists who in turn provide a range of health and well-being services to the 

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���������������������������������������������������������� 

## **Island Health Trust** 

## **(A Company Limited by Guarantee)** 

**Trustees' Report For the Year Ended 31 March 2023** 

local population on the Isle of Dogs. The second floor, on the other hand, remained unoccupied for an extended period, despite numerous expressions of interest from potential lessees, aggravated by the issues around COVID-19.  However, the Tower Hamlets GP Care Group entered into a lease arrangement with the Trust to fully occupy the first floor as of July 2022 with the formal long term lease commencing 1 January 2023. 

## **What we did in 2022/23** 

## _**a. Regulatory**_ 

**Charity Commission Investigation:** As previously reported, following the Charity Commission’s decision to discharge the Interim Managers (IMs) on the 23rd of March 2020, the trustees indicated that they reviewed possible next steps. The Charity Commission has acknowledged that the Trust has completed all the required remedial actions. However, the Statutory Inquiry remains open whilst the Charity Commission continues to consider whether any regulatory action against former Trustees is required before the inquiry can be closed. The Trustees continue to pursue regular updates from the Charity Commission and have been assured that the Commission will provide further updates as soon as they are in a position to do so. 

## _**b. Financial performance**_ 

## _**i. Result for the Year** ._ 

The charity’s financial results for the year ended 31 March 2023 are presented in the Statement of Financial Activities (SoFA) of these accounts. 

The SoFA reports a surplus for the year of £47,957 (2022: £218,272). It should be noted that the prior year surplus included £165,000 exceptional ‘other income’, and therefore the underlying comparable surplus was lower at £53,272. 

Excluding the category of other income, core income from charitable activities – rental income – increased compared to the prior year. Additional rental income for the first floor commenced as of 1 Jan 2023, increasing rent this year to £231,356 (2022: £177,205). We expect the overall rental income to almost double in 2023-24 as compared to the previous year. 

The underlying performance continues to be managed well, with stable cost management, together with the reduction of legal cost support and other third-party support. 

**Overall Administrative Cost Management.** The Board’s prudent cost management and oversight continues. Total administrative costs have been reduced in recent years driven by a reduction in executive service fees and a significant reduction in legal fee expenditure. However, we did see an uplift in Service Charge liability in the year with an increase in running costs and the first floor remaining unoccupied.  For the current year these costs amounted to £154,570 (2022: £121,527). 

**Grants.** The Trust has continued to build on the partnership with an extensive community-based health project, using some space on the first floor of the Health Centre as the base of operations.  We re-formalised our budget for offering grants to support complementary 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. We have been able to formalise a Grant agreement with the Healthy Island Partnership to support the great work they are doing. During the year the Healthy Island Partnership has demonstrated tangible progress in line with the following outcomes: 

_Community development:_ The team has been instrumental in supporting residents to take up volunteering opportunities and engage in different group activities. As a link worker, she has received 77 referral enquiries for patients who want to join groups, volunteer or signposting with a social prescriber to relevant services in Tower Hamlets and has developed strong partnerships to deliver localised activities. The team has set up 6 groups and several partnerships and promoted the work of the project in the community & 2 practices. They also support residents who may be new to the project to integrate with their community peers. 

_Health Awareness workshops delivered in community setting:_ There are currently 6 active groups run by volunteers which run either monthly or weekly and 2 groups which are run periodically by a health coach and first contact physiotherapist practitioner. 

_Development of volunteering process:_ The team has enabled 5 volunteers to lead the coffee morning, wellness garden, walking group and menopause group. The team is collaborating with Barkantine Practice to increase the capacity of volunteers on the Isle of Dogs and hoping to recruit 15 people. 

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���������������������������������������������������������� 

## **Island Health Trust** 

## **(A Company Limited by Guarantee)** 

**Trustees' Report For the Year Ended 31 March 2023** 

_Complementary Therapies_ : The project has supported the ongoing provision of complementary therapies at Island Health Practice. The massage therapy and manipulative therapy (formally osteopathy) have been offered to patients with varying health conditions. These services will be offered to the 4 practices on the Isle of Dogs from April 2023. The project has provided complementary therapies to Patients who have presented with the following conditions: Multiple Sclerosis, spinal mobility/ pain, lower back, shoulder and neck pain, muscle pain, muscle pain and restriction moving upper body, arthritis, sensory related issues such as headaches, migraines, dizziness and less common are localised skin reactions and vague dysfunction. 

A grant of £35,828 was made to the Healthy Island Partnership for the year ending 31 March 2023. The Trust now seeks to expand its grant-giving activities given that the costs have stabilised and the revenue prospects are more favorable. 

**Revenues.** The Board has successfully enhanced its revenues from its main asset, the Health Centre building, by successfully securing full tenancy of the first floor which effectively doubles the rental income at the start of 2023. 

## _**ii. Balance Sheet**_ 

The net asset and fund position showed healthy growth on 31 March 2023 at £3,938,875 (2022: £3,890,918), an increase of £47,957. 

**Fixed Asset.** The main investment property asset value is unchanged. 

**Cash position.** Cash balances at the end of the year remain healthy and have grown from £940,106 last year to £1,032,478. 

**Designated Funds** . The charity holds a designated ‘fabric’ fund, as explained 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 recognise the need to manage and mitigate its key risk of revenue shortfall and put in place a reserves policy to ensure that sufficient free reserves are available to offset its main risk, which is losing tenants of the Health Centre without adequate notice. Given the additional tenancy in 2023 the charity will increase its free reserves equal to at least one year’s annual income for the ground floor and the first floor. This would give sufficient time to find replacement tenants. 

As of 31 March 2023, the charity’s free reserves (being total funds less designated funds and less the net book value of fixed assets) amounted to £1,000,537 (2022: £952,580), the increase arising from the surplus for the year plus the reduction in the carried value of tangible fixed assets.  The Trustees continue to be mindful of the fact that the proposed redevelopment of the Asda site could impact the charity and therefore it is prudent to have a larger reserve during this period. 

## _**c. A 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.  The discussions with several stakeholders to explore possibilities of using some of the space towards supporting health and general well-being for people who live in Tower Hamlets and Newham have progressed and we are actively working with the Healthy Island Partnership and are delighted to confirm that the Trustees were able to finalise a Grant agreement for 2023. 

## **What we plan to do in 2023/24** 

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 to explore use cases for the available space that can support charitable activities. We shall continue to build upon the hard work and great progress we have made with the Healthy Island Partnership Community project team. 

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**(A Company Limited by Guarantee)** 

## **Island Health Trust** 

## **Trustees' Report** 

**For the Year Ended 31 March 2023** 

## _**b. Health Centre-maintenance**_ 

Using the building reserves designated fund for the health centre, the Trust will continue to explore 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 the 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 focus on supporting best use of the property asset as a fully occupied site for 2023-24 and for the long-term as the ‘new normal for its use of space. 

## **Risk Assessment** 

As previously discussed, the trustees have set up their 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 and 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 by: 

## **Elaine Bagshaw** Trustee 

**Jocelyn Braun** Trustee 

Date: 

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## **Island Health Trust** 

## **(A company limited by guarantee)** 

## **Statement of trustees' responsibilities For the year ended 31 March 2023** 

The trustees (who are also the directors of the company for the purposes of company law) are responsible for preparing the Trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). 

Company law requires the trustees to prepare financial statements for each financial year. Under company law, the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the trustees are required to: 

- select suitable accounting policies and then apply them consistently; 

- observe the methods and principles of the Charities SORP (FRS 102); 

- make judgments and accounting estimates that are reasonable and prudent; 

- state whether applicable UK Accounting Standards (FRS 102) have been followed, subject to any material departures disclosed and explained in the financial statements; 

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. 

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

Approved by order of the members of the board of trustees and signed on its behalf by: 

**Elaine Bagshaw** Trustee 

**Jocelyn Braun** Trustee 

Date: 

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## **Island Health Trust** 

## **(A company limited by guarantee)** 

## **Independent auditors' report to the Members of  Island Health Trust** 

## **Opinion** 

We have audited the financial statements of Island Health Trust (the 'charitable company') for the year ended 31 March 2023 which comprise the Statement of financial activities, the Balance sheet and the related notes, 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: 

- give a true and fair view of the state of the charitable company's affairs as at 31 March 2023 and of its incoming resources and application of resources, including its income and expenditure for the year then ended; 

- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and 

- have been prepared in accordance with the requirements of the Companies Act 2006. 

## **Basis for opinion** 

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

## **Conclusions relating to going concern** 

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

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

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

## **Other information** 

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

We have nothing to report in this regard. 

## **Opinion on other matters prescribed by the Companies Act 2006** 

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

- the information given in the Trustees' report for the financial year for which the financial statements are prepared is consistent with the financial statements. 

- the Trustees' report has been prepared in accordance with applicable legal requirements. 

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## **Island Health Trust** 

## **(A company limited by guarantee)** 

## **Independent auditors' report to the Members of  Island Health Trust (continued)** 

## **Matters on which we are required to report by exception** 

In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees' report. 

We have nothing to report in respect of the following matters in relation to which Companies Act 2006 requires us to report to you if, in our opinion: 

- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or 

- the financial statements are not in agreement with the accounting records and returns; or 

- certain disclosures of trustees' remuneration specified by law are not made; or 

- we have not received all the information and explanations we require for our audit; or 

- the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the Trustees' report and from the requirement to prepare a Strategic report. 

## **Responsibilities of trustees** 

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

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

## **Auditors' 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 Auditors' 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: 

## _**Extent to which the audit was considered capable of detecting irregularities, including fraud**_ 

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

- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; 

- we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the charity sector; 

- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, Charities Act 2011 & taxation legislation; 

- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. 

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

- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; 

Page 8 



## **Island Health Trust** 

## **(A company limited by guarantee)** 

## **Independent auditors' report to the Members of  Island Health Trust (continued)** 

- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations; and 

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

- performed analytical procedures to identify any unusual or unexpected relationships; 

- tested journal entries to identify unusual transactions; 

- assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and 

- investigated the rationale behind significant or unusual transactions. 

## _**Audit response to risks identified:**_ 

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

- agreeing financial statement disclosures to underlying supporting documentation; and 

- enquiring of management as to actual and potential litigation and claims. 

There are inherent limitations in our audit procedures described above. The more removed those laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. 

Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. 

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

A further description of our responsibilities 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 Auditors' report. 

## **Use of our report** 

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

## **Clair Rayner FCA DChA (Senior statutory auditor)** 

for and on behalf of 

## **McCabe Ford Williams** 

Chartered Accountants Statutory Auditors Building 1063 Cornforth Drive Kent Science Park Sittingbourne Kent ME9 8PX 

Date: 

Page 9 



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## **Island Health Trust** 

## **(A company limited by guarantee)** 

**Statement of financial activities (incorporating income and expenditure account) For the year ended 31 March 2023** 

|**Note**<br>**Income from:**<br>Charitable activities<br>3<br>Investments<br>4<br>Other income<br>5<br>**Total income**<br>**Expenditure on:**<br>Charitable activities:<br>7<br>Grants payable<br>Support costs<br>**Total expenditure**<br>**Net movement in funds**<br>**Reconciliation of funds:**<br>Total funds brought forward<br>Net movement in funds<br>**Total funds carried forward**<br>14|**Unrestricted**<br>**funds**<br>**2023**<br>**£**<br>231,356<br>6,999<br>-<br>238,355<br>35,828<br>154,570<br>190,398<br>47,957<br>3,890,918<br>47,957<br>3,938,875|**Total**<br>**funds**<br>**2023**<br>**£**<br>231,356<br>6,999<br>-<br>238,355<br>35,828<br>154,570<br>190,398<br>47,957<br>3,890,918<br>47,957<br>3,938,875|_Total_<br>_funds_<br>_2022_<br>_£_<br>_177,205_<br>_144_<br>_165,000_|
|---|---|---|---|
||||_342,349_|
||||_2,550_<br>_121,527_|
||||_124,077_|
||||_218,272_|
||||_3,672,646_<br>_218,272_|
||||_3,890,918_|



The Statement of financial activities includes all gains and losses recognised in the year. 

The notes on pages 12 to 19 form part of these financial statements. 

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## **Island Health Trust** 

**(A company limited by guarantee) Registered number: 06780453** 

**Balance sheet As at 31 March 2023** 

||||**2023**||_2022_|
|---|---|---|---|---|---|
||**Note**||**£**||_£_|
|**Fixed assets**||||||
|Tangible assets|10||-||_-_|
|Investment property|11||2,842,500||_2,842,500_|
||||2,842,500||_2,842,500_|
|**Current assets**||||||
|Debtors|12|221,068||_331,037_||
|Cash at bank and in hand||1,032,478||_940,106_||
|||1,253,546||_1,271,143_||
|Creditors: amounts falling due within one year|13|(157,171)||_(222,725)_||
|**Net current assets**|||1,096,375||_1,048,418_|
|**Total net assets**|||3,938,875||_3,890,918_|
|**Charity funds**||||||
|Restricted funds|14||-||_-_|
|Unrestricted funds|14||3,938,875||_3,890,918_|
|**Total funds**|||3,938,875||_3,890,918_|



The trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements. 

The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime. 

The financial statements were approved and authorised for issue by the trustees and signed on their behalf by: 

**Elaine Bagshaw** Trustee Date: 21 

**Jocelyn Braun** Trustee 

The notes on pages 12 to 19 form part of these financial statements. 

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## **Island Health Trust** 

**(A company limited by guarantee)** 

**Notes to the financial statements For the year ended 31 March 2023** 

## **1. General information** 

Island Health Trust is a charitable company limited by guarantee, registered in England and Wales. Its registered office is Thames House, Roman Square, Sittingbourne, Kent, ME10 4BJ. The members of the company are the trustees named on page 1. 

## **2. Accounting policies** 

## **2.1 Basis of preparation of financial statements** 

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - 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 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. 

Island Health Trust 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. The presentational currency is pounds sterling. 

## **2.2 Income** 

All income is recognised once the company has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably. 

Other income is recognised in the period in which it is receivable and to the extent the goods have been provided or on completion of the service. 

## **2.3 Expenditure** 

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. 

Expenditure on charitable activities is incurred on directly undertaking the activities which further the company's objectives, as well as any associated support costs. 

Grants payable are charged in the year when the offer is made except in those cases where the offer is conditional, such grants being recognised as expenditure when the conditions attaching are fulfilled. Grants offered subject to conditions which have not been met at the year end are noted as a commitment, but not accrued as expenditure. 

## **2.4 Tangible fixed assets and depreciation** 

Tangible fixed assets costing £500 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably. 

Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost. 

At each reporting date the company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined to be the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount. 

Page 12 



���������������������������������������������������������� 

## **Island Health Trust** 

## **(A company limited by guarantee)** 

**Notes to the financial statements For the year ended 31 March 2023** 

## **2. Accounting policies (continued)** 

## **2.4 Tangible fixed assets and depreciation (continued)** 

Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, using the straight-line method. 

Depreciation is provided on the following basis: 

Office equipment - 25% Computer equipment - 33% 

## **2.5 Investments** 

The investment property is included at fair value. Gains are recognised in the Statement of Financial Activities. 

## **2.6 Financial instruments** 

The company only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method. 

## **2.7 Fund accounting** 

General funds are unrestricted funds which are available for use at the discretion of the trustees in furtherance of the general objectives of the company and which have not been designated for other purposes. 

Designated funds comprise unrestricted funds that have been set aside by the trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements. 

## **3. Income from charitable activities** 

||**Unrestricted**|**Total**|_Total_|
|---|---|---|---|
||**funds**|**funds**|_funds_|
||**2023**|**2023**|_2022_|
||**£**|**£**|_£_|
|Rental income|231,356|231,356|_177,205_|



## **4. Investment income** 

||**Unrestricted**|**Total**|_Total_|
|---|---|---|---|
||**funds**|**funds**|_funds_|
||**2023**|**2023**|_2022_|
||**£**|**£**|_£_|
|Bank interest|6,999|6,999|_144_|



Page 13 



���������������������������������������������������������� 

## **Island Health Trust** 

## **(A company limited by guarantee)** 

**Notes to the financial statements For the year ended 31 March 2023** 

## **5. Other incoming resources** 

|**Unrestricted**<br>**funds**<br>**2023**<br>**£**<br>Other<br>-<br>**Analysis of grants**<br>**Grants to**<br>**Institutions**<br>**2023**<br>**£**<br>Grants payable<br>35,828<br>_Total 2022_<br>_2,550_<br>The company has made the following material grants to institutions during the year:<br>**Name of institution**<br>Healthy Island Partnership<br>Island Health Practice|**Total**<br>**funds**<br>**2023**<br>**£**<br>-<br>**Total**<br>**funds**<br>**2023**<br>**£**<br>35,828<br>_2,550_<br>**2023**<br>**£**<br>35,828<br>-<br>35,828|_Total_<br>_funds_<br>_2022_<br>_£_<br>_165,000_|
|---|---|---|
|||_Total_<br>_funds_<br>_2022_<br>_£_<br>_2,550_|
|||_2022_<br>_£_<br>_-_<br>_2,550_|
||||
|||_2,550_|



## **6. Analysis of grants** 

## **7. Analysis of expenditure on charitable activities Summary by fund type** 

||**Unrestricted**|||
|---|---|---|---|
||**funds**|**Total**|_Total_|
||**2023**|**2023**|_2022_|
||**£**|**£**|_£_|
|Promote the provision of primary health care|190,398|190,398|_124,077_|



Page 14 



���������������������������������������������������������� 

## **Island Health Trust** 

## **(A company limited by guarantee)** 

**Notes to the financial statements For the year ended 31 March 2023** 

## **8. Analysis of expenditure by activities** 

|Promote the provision of primary health care<br>_Total 2022_<br>**Analysis of support costs**|**Grant funding**<br>**of activities**<br>**2023**<br>**£**<br>35,828<br>_2,550_|**Support costs**<br>**2023**<br>**£**<br>154,570<br>_121,527_|**Total**<br>**funds**<br>**2023**<br>**£**<br>190,398<br>_124,077_|_Total_<br>_funds_<br>_2022_<br>_£_<br>_124,077_|
|---|---|---|---|---|
||||||



|Executive services<br>Professional fees<br>Public sector and Charity Commission engagement<br>Service charges<br>Audit fees<br>Insurance<br>Property maintenance<br>IT equipment and support<br>Sundry<br>Depreciation|**Total**<br>**funds**<br>**2023**<br>**£**<br>35,400<br>11,052<br>-<br>90,008<br>8,375<br>3,240<br>6,279<br>75<br>141<br>-<br>154,570|_Total_<br>_funds_<br>_2022_<br>_£_<br>_28,420_<br>_13,278_<br>_5,238_<br>_64,388_<br>_5,000_<br>_4,000_<br>_-_<br>_950_<br>_133_<br>_120_|
|---|---|---|
|||_121,527_|



## **9. Trustees' remuneration and expenses** 

During the year, no trustees received any remuneration or other benefits _(2022 - £NIL)_ . 

During the year ended 31 March 2023, no trustee expenses have been incurred _(2022 - £NIL)_ . 

Page 15 



���������������������������������������������������������� 

## **Island Health Trust** 

## **(A company limited by guarantee)** 

**Notes to the financial statements For the year ended 31 March 2023** 

## **10. Tangible fixed assets** 

|**Cost or valuation**<br>At 1 April 2022<br>At 31 March 2023<br>**Depreciation**<br>At 1 April 2022<br>At 31 March 2023<br>**Net book value**<br>At 31 March 2023<br>_At 31 March 2022_<br>**11.**<br>**Investment property**<br>**Valuation**<br>At 1 April 2022<br>At 31 March 2023|**Office**<br>**equipment**<br>**£**<br>481<br>481<br>481<br>481<br>-<br>_-_|**Computer**<br>**equipment**<br>**£**<br>5,175<br>5,175<br>5,175<br>5,175<br>-<br>_-_|**Total**<br>**£**<br>5,656|
|---|---|---|---|
||||5,656|
||||5,656|
||||5,656|
||||-|
||||_-_|
||||**Freehold**<br>**investment**<br>**property**<br>**£**<br>2,842,500|
||||2,842,500|



The trust owns the freehold of land on which the Health Centre is sited and the adjoining land extending to the East Ferry Road. This freehold, however, is subject to a lease to ASDA stores expiring on 15 July 2107. In turn, ASDA sub-lease back to the trust that part of the land on which the buildings and car park are sited. This sub-lease expires on 14 July 2107. 

The trustees have concluded that it is appropriate to include the carrying value of the investment property at £2.84m based on the most recent formal valuation received (January 2021). The trustees believe that this is the best current use estimate of the market value as at 31 March 2023. The historical cost of the investment property is £717,680. 

As IHT intends to rebuild the health centre in the next five to eight years, a new valuation of the land was obtained to inform the potential for development. As expected, the valuation of the land is significantly higher than the value of the current Health Centre building. However, the lease arrangement with ASDA will need to be considered and will considerably reduce the remaining value to IHT.  IHT will continue to report transparently and openly on the progression of any new Health Centre building proposals. 

Page 16 



## **Island Health Trust** 

## **(A company limited by guarantee)** 

## **Notes to the financial statements For the year ended 31 March 2023** 

## **12. Debtors** 

||**2023**||_2022_|
|---|---|---|---|
||**£**||_£_|
|Other debtors|221,068||_327,837_|
|Prepayments and accrued income|-||_3,200_|
||221,068||_331,037_|
|**Creditors: Amounts falling due within one year**||||
||**2023**||_2022_|
||**£**||_£_|
|Trade creditors|35,831||_17,908_|
|Other taxation and social security|19,888||_15,914_|
|Accruals and deferred income|101,452||_188,903_|
||157,171||_222,725_|



## **13. Creditors: Amounts falling due within one year** 

Included above is deferred rental income of £Nil _(2022 - £38,063)_ . 

Page 17 



���������������������������������������������������������� 

## **Island Health Trust** 

## **(A company limited by guarantee)** 

**Notes to the financial statements For the year ended 31 March 2023** 

## **14. Statement of funds** 

## **Statement of funds - current year** 

|**Unrestricted funds**<br>**Designated funds**<br>Designated Funds - all funds<br>**General funds**<br>Accumulated general fund<br>Revaluation reserve<br>**Total Unrestricted funds**|**Balance at 1**<br>**April 2022**<br>**£**<br>95,838<br>1,670,260<br>2,124,820<br>3,795,080<br>3,890,918|**Income**<br>**£**<br>-<br>238,355<br>-<br>238,355<br>238,355|**Expenditure**<br>**£**<br>-<br>(190,398)<br>-<br>(190,398)<br>(190,398)|**Balance at 31**<br>**March 2023**<br>**£**<br>95,838|
|---|---|---|---|---|
|||||1,718,217<br>2,124,820|
|||||3,843,037|
|||||3,938,875|



The trustees set aside a sum as a designated 'fabric fund' in order to meet the costs of improvements to the Health Centre. 

The revaluation reserve relates to the increase in fair value of the investment property. 

## **Statement of funds - prior year** 

|**Unrestricted funds**<br>**Designated funds**<br>Designated Funds - all funds<br>**General funds**<br>Accumulated general fund<br>Revaluation reserve<br>**Total Unrestricted funds**|_Balance at_<br>_1 April 2021_<br>_£_<br>_95,838_<br>_1,451,988_<br>_2,124,820_<br>_3,576,808_<br>_3,672,646_|_Income_<br>_£_<br>_-_<br>_342,349_<br>_-_<br>_342,349_<br>_342,349_|_Expenditure_<br>_£_<br>_-_<br>_(124,077)_<br>_-_<br>_(124,077)_<br>_(124,077)_|_Balance at_<br>_31 March 2022_<br>_£_<br>_95,838_|
|---|---|---|---|---|
|||||_1,670,260_<br>_2,124,820_|
|||||_3,795,080_|
|||||_3,890,918_|



Page 18 



���������������������������������������������������������� 

## **Island Health Trust** 

## **(A company limited by guarantee)** 

## **Notes to the financial statements For the year ended 31 March 2023** 

## **15. Analysis of net assets between funds** 

## **Analysis of net assets between funds - current year** 

|Investment property<br>Current assets<br>Creditors due within one year<br>**Total**|**Unrestricted**<br>**funds**<br>**2023**<br>**£**<br>2,842,500<br>1,253,546<br>(157,171)<br>3,938,875|**Total**<br>**funds**<br>**2023**<br>**£**<br>2,842,500<br>1,253,546<br>(157,171)|
|---|---|---|
|||3,938,875|



## **Analysis of net assets between funds - prior year** 

|Investment property<br>Current assets<br>Creditors due within one year<br>**Total**|_Unrestricted_<br>_funds_<br>_2022_<br>_£_<br>_2,842,500_<br>_1,271,143_<br>_(222,725)_<br>_3,890,918_|_Total_<br>_funds_<br>_2022_<br>_£_<br>_2,842,500_<br>_1,271,143_<br>_(222,725)_|
|---|---|---|
|||_3,890,918_|



## **16. Members' liability** 

Each member of the charitable company undertakes to contribute to the assets of the company in the event of it being wound up while he/she is a member, or within one year after he/she ceases to be a member, such amount as may be required, not exceeding £10 for the debts and liabilities contracted before he/she ceases to be a member. 

## **17. Related party transactions** 

During the year the Trust's Chief Operating Officer provided services to the charity through the following intermediate company: 

|||**2023**|_2022_|
|---|---|---|---|
|||**£**|_£_|
|Alternative Leaders Ltd (UK company no.|11658933)|35,400|_28,420_|



Page 19