2021-03-31-accounts

Annual Report and Accounts 2020 / 2021

Rosemere Cancer Foundation, Rosemere Cancer Centre, Royal Preston Hospital Sharoe Green Lane, Preston, Lancashire, PR2 9HT e: [e-mail]

The Rosemere Cancer Foundation

Annual Report & Accounts 2020/21

Contents

1. Chair’s welcome ......................................................................................................................... 1 2. Who we are ................................................................................................................................. 2 3. How to support us ...................................................................................................................... 3 4. Your support – our achievements and performance ............................................................... 4 Income received ..................................................................................................................... 4 Our fundraising practices ..................................................................................................... 6 How we spend charitable funds ........................................................................................... 6 Our volunteers ....................................................................................................................... 8 5. Our Future Plans ........................................................................................................................ 8 6. Structure, Governance and Management ................................................................................. 9 Structure ................................................................................................................................ 9 Risk Management and Internal Controls ............................................................................ 11 Trustee and Advisors and Contact Details for the Foundation ........................................ 12 7. Financial Review ...................................................................................................................... 14 Going Concern ..................................................................................................................... 15 Reserves Policy ................................................................................................................... 15 Investment Policy ................................................................................................................ 16 Corporate Trustee Responsibilities Statement .................................................................. 17 Independent Auditor’s report .............................................................................................. 18 8. Financial Statements ............................................................................................................... 22 Consolidated Statement of Financial Activities for the year ended 31 March 2021 ........ 22 Consolidated Balance Sheet as at 31 March 2021 ............................................................. 23 Parent Balance Sheet as at 31 March 2021 ........................................................................ 24 Consolidated Cash Flow Statement for the year ended 31 March 2021 ........................... 25 9. Notes to the Financial Statements .......................................................................................... 26

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1. Chairs welcome

This has certainly been a year like no other. Covid-19 brought with it unprecedented challenges both for our NHS Colleagues, as well as the Charity. I would like to extend my sincere thanks to all who have generously donated, both time and money, to help support local cancer patients during what has undoubtedly been a most difficult time for everyone.

Rosemere Cancer Foundation continues to be absolutely committed to supporting world class cancer treatment, research and outstanding care for patients across Lancashire and South Cumbria. The charity is able to do this thanks to very generous donations and support from our supporters and their families, many of whom have been cancer patients, as well as from community groups, businesses and grant funders. I would also like to pay tribute to those people who very kindly chose to leave us gifts in their will. Their legacies together with your donations, grants and fundraising efforts have helped raise a total of £706,125. I can honestly say, hand on heart, that this is hugely appreciated by all the patients who continued to benefit from projects and services funded by the Foundation, despite the ongoing battle to fight this terrible virus that continues to affect us all. Cancer didn’t stop because of Covid-19 and neither did our efforts to support cancer patients.

Inevitably, the Foundation’s income was affected by the pandemic, as many of its traditional fundraising activities were cancelled or postponed until further notice. The Foundation quickly adapted to these circumstances and diversified its activities, embracing digital fundraising opportunities, whilst also reducing overheads wherever possible. Our supporters also embraced new opportunities and have been dedicated and stoic in their support of the Foundation though this challenging year. The following report gives more details about where we have invested your money.

With the support of our supporters, we have remained resilient, embraced change and adapted to the ever changing fundraising environment. We are now looking forward, with plans in place to make a progressive recovery from this unexpected setback.

Thank you, for your continued support.

Signed:

Chair: Peter Mileham OBE DL

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2. Who we are

The Rosemere Cancer Foundation is a registered charity (registered number 1131583). The Foundation was established by a declaration of trust dated 9 November 1995 as amended by supplemental deeds dated 12 November 1996, 31 March 2003, 3 November 2005 and 18 December 2008.

Rosemere Cancer Foundation supports world class cancer treatment throughout Lancashire and South Cumbria. Our aim is to work in partnership with local clinical staff to achieve the best possible care for cancer patients across the region wherever they are treated. We seek to do this by:

• Funding cutting edge equipment to help clinicians remain at the forefront of the fight against cancer.

• Supporting innovative ways to take the fear out of cancer for patients and their families during their treatment, making it as comfortable and stress free as possible.

• Backing local research projects that help improve our understanding of cancer and how it can be better diagnosed and treated.

• Facilitating top quality training to help clinical staff treating cancer patients be the very best they can be.

We would like you to support us in our crucial work so please read on and let us tell you more about ourselves, what we do, what we have achieved and how we go about spending the money given to us.

Our aims and objectives

Under the Charities Act there are 13 descriptions of charitable purpose. The Foundation is covered by

“the advancement of health or the saving of lives”

We have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing our aims, objectives and in planning our future activities. In particular the Trustee considers how planned activities will contribute to the aims and objectives they have set.

Our Foundation’s purposes as set out in the objects contained in the Foundation’s Trust Deed are to:

Support the provision of cancer services for the benefits of patients in Lancashire and South Cumbria

The objective use of charitable funds are defined in the Trust Deed as:

The Trustee shall use the Fund for any charitable purpose or purposes relating to the National Health Service

By raising additional funds and through the careful management of our existing funds, the Foundation provides a public benefit by making grants to support projects for the benefit of cancer patients. The Foundation funds projects not only at the Rosemere Cancer Centre, based at Royal Preston Hospital, but at cancer units across Lancashire and South Cumbria, supporting the four NHS Hospital Trusts that run eight hospital sites; Blackburn Royal Infirmary, Blackpool Victoria Hospital, Burnley General Hospital, Chorley District General Hospital, Furness General Hospital, Royal Lancaster Infirmary and Westmorland General Hospital.

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Wherever patients from Lancashire and South Cumbria are treated, there are projects funded by The Rosemere Cancer Foundation which are making a real difference to their comfort and quality of treatment.

The granting of funds is made in accordance with charity law, our constitution and the wishes and directions of donors. In making grants, we endeavour to reflect the wishes of patients and staff by directing funds towards areas they tell us are most in need. During the year 2020/21, grants totalling £373k were made (2019/20: £379k).

3. How to support us

Get Involved

For details on volunteering opportunities, our events or to let us know what you have planned, please visit www.rosemere.org.uk, email [e-mail] or call the fundraising team on 01772 522913 .

Making a Donation

For ways in which you can make a donation please visit www.rosemere.org.uk/donate or call the fundraising team on 01772 522913 .

Gifts in Memory

Many thousands of pounds are given each year to the charity in memory of friends and family who have sadly passed away. These funds really help us to improve facilities or buy extra equipment that will benefit our patients, creating something very positive out of a sad personal loss.

Legacy Support

Gifts left to the Charity in a Will provide a valuable income source that help us fund vital work across the region ensuring that we continue to make a difference. It also allows us to plan for the future, benefitting as many patients as possible. Even the smallest legacy can have a lasting impact.

Gift Aid

Is the gift that keeps on giving and last year we claimed thousands of pounds in Gift Aid. If you are a UK tax payer and sign up for gift aid with us, we are able to claim an additional 25p for every £1 you donate.

Get In Touch

For information about Gift Aid, legacy donations and the many other ways you may wish to support, please visit www.rosemere.org.uk, email [e-mail] or call the fundraising team on 01772 522913 . We would love to hear from you.

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4. Your support – our achievements and performance

Covid-19 brought about an unprecedented start to the year with charity fundraising activities severely affected by Coronavirus restrictions, with areas such as Community and Events fundraising almost wiped out overnight. With a large percentage of the charity’s historic income coming from these types of fundraising, an urgent response was required to adapt to the new fundraising world it was operating in.

The Foundation quickly diversified its fundraising efforts, embracing digital fundraising activities, placing a greater emphasis on grant and trust funding, and refreshed its supporter engagement programme, to ensure clear and effective communication was possible with its loyal and generous support base.

In June 2020 the Foundation launched its successful ‘We Don't Stop - Coronavirus Appeal 2020’ appeal that raised £36,118 in just eight weeks. In addition, virtual quizzes, balloon races, bike rides and walks were organised to enable supporters to continue to support the Foundation, either from the comfort of their own home or in close proximity to it.

As the Foundation adapted, so did its loyal supporters, who became extremely creative with their fundraising activities, with amazing feats of endurance or creativity undertaken. These included a 2.6 mile skip by eight year old Lorien Crowther, a Lands End to John O’Groats virtual ride in Phil Bentham’s front room and Rowan Wood scaling the height of Mount Everest on his stairs at home over a 13 hour period, raising an incredible £4,080.

With social gatherings and events prohibited for nearly the whole 12 months, a number of regular Rosemere events went virtual, with the Walk in the Dark taking place around the region. Some 100 hardy supporters walked the 11 mile distance from their doorsteps collectively raising £18,872, whilst the Ribble Valley Ride followed similar suite, with riders collectively attempting to ride around the world on local routes close to home during the month of September.

Charitable Trust activity has received a huge amount of support over the last 12 months with donations from a large variety of Trusts including the Cumbria Foundation and Duchy of Lancaster Benevolent Fund, supporting the Foundation’s long term project commitments.

The Foundation is extremely thankful to the many people who have given generously throughout this difficult year. The donations and legacies we receive are an invaluable source of funds used to purchase additional equipment and services that are not able to be provided by core NHS funds. With this income the Foundation has been able to fund and support a range of specific oncology related projects and services benefiting both patients and staff.

By working with the four Hospital Trusts across the Lancashire and South Cumbria, the charity is able to help them improve care for patients through supporting the addition of specialist medical equipment, improvements to the healthcare environment, supporting training of staff across these organisations and funding local cancer research.

Income received

The Foundation can only continue to support the work of hospitals in the region as long as we continue to receive the money needed to further our charitable aims and objectives.

The following chart illustrates the breakdown of the total income £706k (2019/20: £1,214k) received in the financial year:

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----- Start of picture text -----
2%
28%
Donations
48%
Legacies
0%
Grants
12% Trading Activities
Charitable activities
11% Investments
----- End of picture text -----

As the chart shows, our largest area of income was in donations £341k (2019/20: £381k). As events and community fundraising became almost impossible to facilitate, the Foundation focused on sustaining its donations with an enhanced supporter stewardship plan, a refreshing of its regular giving option and a relaunch of its lottery. Without this diversification and the charity’s dedicated & enthusiastic supporters, its fundraising achievements wouldn’t be possible.

The charity appreciates the thousands of donations that it has received this year from members of the public, staff and organisations, many of whom have a personal link to the cause through their own experiences of cancer, or are companies committed to supporting their communities.

The value of legacies in 2020/21 was £76k, (2019/20: £184k). Leaving a gift in your Will to our charity is a very generous act which helps us to ensure that your loved ones will get the very best care possible if they are faced with a cancer diagnosis. You can be sure that your gift, however small, will make a real difference to the treatment and care of local cancer patients in Lancashire and South Cumbria for years to come.

With the diversification in fundraising activities across the board, additional resources were diverted towards grant and trust funding applications. Grants received in 2020/21 totalled £82k (2019/20: £36k).

The Rosemere Coffee Shop has remained closed since the start of the first lockdown in March 2020. This has resulted in no trading taking place throughout the year (2019/20: £83k) as Covid safety guidelines within the Cancer Centre it is based in prevented the service being viable. No stock was wasted during this period, with all perishable goods distributed to NHS staff via the NHS Heroes Hub set up by Lancashire Teaching Hospitals Charity or donated to local food banks. Plans are now underway for the safe return of the solely volunteer led service, which works tirelessly to support us and cancer patients through the service that is located in the Rosemere Cancer Centre. They do so by selling snacks and refreshments in a relaxing and informal environment. The team and service is loved equally by cancer centre staff, patients and the family members, friends and carers, who attend appointments with them.

Investment income was £11k, (2019/20: £10k) in the form of dividends and bank interest as we managed funds not immediately required.

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Our fundraising practices

Members of The Rosemere Cancer Foundation’s fundraising team organise and co-ordinate fundraising activities on behalf of the charity and also with our supporters both in the hospital and in the wider community (when possible) on behalf of the Foundation. The Foundation does not use external professional fundraisers or involve commercial participators. There have been no complaints about fundraising activity this year.

The Foundation is signed up to the Fundraising Regulator’s Code of Fundraising Practice and fundraising staff attend Chartered Institute of Fundraising training sessions and seminars, many of which are now delivered virtually. All staff follow the fundraising guidance policy and working practices that are reviewed regularly to ensure compliance. They are also required to undertake relevant safeguarding mandatory training to help to recognise and protect vulnerable people. Volunteer fundraisers are given a full briefing and appropriate training before they raise funds for the Foundation and they will also be given regular updates and reminders.

All direct marketing is undertaken by the fundraising team in line with GDPR regulation and to ensure that it is not unreasonably intrusive or persistent. Contact is made through targeted marketing, usually on a quarterly basis subject to appeals. All marketing material contains clear instructions on how a person can be removed from mailing lists.

Our fundraising performance

As the Covid-19 pandemic hit at the start of this financial year, it became very clear that the charity’s fundraising plans and strategy would have to change swiftly, to reflect the new environment it was operating in for the foreseeable future. As potential income projections were forecasted, it became evident that the charity needed to significantly reduce fundraising costs and did so through the redeployment of a number of fundraisers and administrative staff to other departments within the Lancashire Teaching Hospital Trust.

These actions enabled the charity to focus on driving income to support its long term project commitments that had been agreed against historical income streams. The charity was successful in doing so and by the end of the financial year, a small balance of available funds had been created for future projects and services.

How we spend charitable funds

Of the total expenditure of £687k (2019/20: £908k), expenditure on charitable activities was £450k (2019/20: £448k) spent across a range of long term projects and programmes, from building works to cancer research to educational programmes for staff. The monies spent were used to purchase additional goods and services not normally provided by, or in addition to, the normal NHS service that benefits staff and patients. The Charitable Funds Committee and Rosemere Management Committee keep the spirit of public benefit at the forefront of their Fund Managers decision making.

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The following chart illustrates the breakdown of the total expenditure in the financial year:

----- Start of picture text -----
Grants for patient environment
and wellbeing
Grants for staff education and
30%
34% wellbeing
Grants for medical research
10% Grants for medical equipment
11%
1% 13%
Charitable activities support costs
Raising Funds
----- End of picture text -----

As the chart shows, our largest area of spend was on raising funds which is an area that generated a large percentage of income. Without having the appropriate staffing resource and infrastructure in place to raise funds, the charity wouldn’t be able to continue to raise the significant amount of income it does; to support and underpin its charitable objectives and the many projects & services it funds. Fundraising professionals drive our fundraising plans and strategies, ensuring a maximum return on investment is achieved.

To ensure the charity was able to meet its long term project commitments, a freeze was placed on the funding of new bids above £5k during the course of 2020/21. The window for the consideration of funding new bids reopened in July 2021 to support new projects and services.

Over the past 12 months, the Foundation has continued to fund a number of long term projects and some smaller but just as impactful projects across Lancashire and South Cumbria, including the Rosemere Cancer Education Hub at Lancashire Teaching Hospitals Trust, the three year Late Effects of Pelvic Radiotherapy Pilot Study, a Research Nurse to Develop an Early Phase Clinical Trial Portfolio at the Lancashire Clinical Research Facility and initiated an Archival Cardiothoracic Tissue & Biofluid Research Bank at Blackpool Teaching Hospitals Trust. All these long standing project commitments benefit patients and oncology staff from across the region.

Other smaller projects include modesty popper gowns for patients in the radiotherapy department, ice lollies for patients on the Ribblesdale Ward and additional specialist ceiling panels in radiotherapy treatment rooms.

In March 2021 we also saw the commencement of the Ribblesdale Ward refurbishment scheme supported and funded by Rosemere’s 20[th] Anniversary Appeal, through which £1,000,000 was raised to facilitate this project.

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Our volunteers

Volunteers are crucial to so many charities and Rosemere is no exception to this.

Volunteers are the backbone of many of the things we do, and they support us in a myriad of ways, from bucket collections, to helping out at events, to selling raffle tickets and Christmas cards, to mailings and simply spreading the word about what we do. We quite honestly wouldn’t be able to do what we do without them.

They are very often an extension of both our fundraising and administration teams, enabling us to further our capacity and fundraising opportunities.

Despite volunteering opportunities being limited by the impact of the pandemic, we’d like to take this opportunity thank our volunteers who donate their time and their skills to help us make a difference by raising funds for our charity.

On behalf of the staff and patients who have benefitted from the improved services and facilities funded by the many donations and legacies received, the Corporate Trustee would like to thank all of our donors for their generous support over the past year.

5. Our Future Plans

2020/21 was another year of change, most of which was enforced by the ongoing pandemic. It quickly became apparent that the existing staffing model of the charity which had been historically focused towards community and events fundraising wouldn’t be sustainable over the months ahead with the limitations placed on traditional forms of fundraising. Following the previous year’s review and movement towards a more diverse fundraising model, a digital fundraiser and an individual giving fundraiser joined the team just before the pandemic struck. This resource and skill set was essential to the charity diversifying its efforts and income streams, helping stimulate income and support for the charity when its main income streams were no longer possible.

The fundraising resource for community and events income was redeployed or reassigned to new roles within the Hospital Trust or its linked charity, Lancashire Teaching Hospitals Charity.

As the pandemic progressed and the time scales of its impact became unknown, the decision was taken to undergo a staffing restructure and align staffing resources with the wider charity family at Lancashire Teaching Hospitals NHS Foundation Trust. This has enabled the charity to retain fundraising expertise, knowledge and experience, whilst significantly reducing its overheads and

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create a long term sustainable model that can bend and flex to mirror the changing fundraising environment it faces.

Following on from one of the toughest years in fundraising history, the charity has positioned itself to enter into a year of financial recovery and minimal risk. With its alignment to Lancashire Teaching Hospitals Charity, the new staffing structure will provide the foundations for the charity to stabilise and grow in a sustainable and effective manner.

Through consolidating the improvements and successes of 2020/21 and embracing the steady return to normality during 2021/22, the charity is positioned to stabilise and then move forwards, positioning itself to celebrate 25 years of fundraising during 2022.

An agreement in principle is in place to launch an appeal to support the introduction of a Brachytherapy service at the regional cancer centre. This service is subject to commissioner approval and until that is sanctioned, the Foundation will continue to work closely with clinicians to help drive innovative projects, and through its Management Committee it ensures its funding processes are robust and transparent.

The following strategic aims are therefore agreed for 2021/22:

• To recover from the financial impact of the pandemic and achieve an income target of £764k supported by an expenditure which will enable the charity to maintain existing levels of stewardship and be positioned to react to the uplift in fundraising opportunities once social distancing measures are relaxed and subsequently removed.

• To reopen bids from July 2021 and continue to support cancer services across the Lancashire and South Cumbria Cancer Alliance through all four NHS Trusts in the Foundation’s catchment areas. This will be superseded if a Brachytherapy service at Lancashire Teaching Hospitals NHS Foundation Trust is secured. This will require the launch of a major capital appeal by the charity and the project will support patients across the Lancashire and South Cumbria Cancer Alliance region.

• Maintain a more diverse fundraising portfolio, building on the strengths of 2020/21 and ensuring the charity is positioned to maximise the opportunities presented when community and events fundraising returns in 2021/22.

• Continue to maintain a high profile throughout Lancashire and South Cumbria by engaging with supporters and the general public throughout the region via ongoing and new projects with continued proactive PR through the written press, local radio and TV.

• Expand the charities volunteer numbers to support both fundraising and administrative activities.

During the year ahead the charity will continue to review its governance and infrastructure to ensure it is aligned to the latest in operational excellence, putting in place a sustainable platform for growth and enabling a more strategic approach to the use of donations and funds received.

6. Structure, Governance and Management

Structure

The Foundation follows the NHS Corporate Trustee operational model with members of Lancashire Teaching Hospitals NHS Foundation Trust Board being appointed as its Corporate Trustee. The

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Corporate Trustee members are appointed upon their appointment to the Board of Directors of Lancashire Teaching Hospitals NHS Foundation Trust.

The overall management and decision making of the Foundation is delegated by the Corporate Trustee to the Charitable Funds Committee and Management Committee.

Charitable Funds Committee

The Charitable Funds Committee meet quarterly and have specific terms of reference; no business may be transacted at a meeting unless three Non-Executive Directors and one Executive Director, who must be the Finance Director (or nominated deputy), are present.

The Charitable Funds Committee is responsible for reviewing and managing its Charitable Funds in accordance with the Trusts’ Standing Financial Instructions and its scheme of delegated powers of authority.

The Charitable Funds Committee works within the delegated powers granted to it by the Corporate Trustee who retain the right to amend delegated powers and terms of reference as appropriate. As part of its delegated powers, it is responsible for the following:

• To establish a strategy for charitable funds and on the basis of professional advice, determine an investment policy within this strategy.

• To monitor performance and composition of the portfolio to ensure compliance with the investment policy and seek advice from the professional advisor, when required.

• To monitor charitable funds and approve the creation of new funds and ensure a periodic review of existing funds takes place.

• To ensure appropriate procedures are in place to control expenditure and ensure it is in accordance with the objectives of the funds.

• To ensure the requirements of the Charity Commission are complied with.

• To refer any matters arising to the Corporate Trustee.

The Committee is supported in doing so by the Head of Charities and the Head of Rosemere & Fundraising.

The Foundation operates within a framework with clear policies on investments, sponsorship, fundraising, expenditure and reserves. Authority to approve expenditure from funds is controlled through delegated limits.

Rosemere Management Committee

The Corporate Trustee delegates day to day responsibility for the running of The Rosemere Cancer Foundation to the management committee, under the direction of an Independent Chairman. The Management Committee is comprised of non-executive members of the Trust Board, representatives from each of the four NHS Trusts within which the Foundation operates, including clinical staff and lay members.

The Funds

The Rosemere Cancer Foundation has a single unrestricted fund that is spent, as far as possible, in the optimum way to further the wider objectives of the charity.

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Connected Parties and Linked Charities

The Charity holds 100% of the share capital in Rosemere Coffee Shop Limited (Company registration Number 07913994), a retail outlet based in the Rosemere Cancer Centre at Royal Preston Hospital. All gross profits are donated to the Charity under the Gift Aid scheme and the company’s accounts have been consolidated with the Charity’s accounts this financial year.

The Charity is linked to the separate registered charity, Lancashire Teaching Hospitals Charity (formerly Lancashire Teaching Hospitals NHS Foundation Trust Charity). It was established under the same declaration of trust in November 1995 and shares the same Corporate Trustee. The Charity pools its investments with that of Lancashire Teaching Hospitals Charity to form a single investment portfolio, resulting in greater efficiency in the management of the investments.

Risk Management and Internal Controls

Due to the close relationship between the Trust and the Foundation the risk management process is embedded into that of the Trust’s assurance framework and risk management systems.

The Board of Directors of the Trust, who are also the Corporate Trustee, have adopted a formal risk management process to assess business risk and implement risk management strategies. Senior management and the trustee have:

• Identified the types of risk the Trust and Foundation faces.

• Prioritised the risks in terms of impact and likelihood of materialising.

• Identified means of mitigating these risks.

A risk register has been prepared to assist in managing risk to which the Trust has been exposed. The risk register is monitored by the Trust’s Governance framework who request regular updates on any the relevant action plans and ensure that all appropriate controls are in place or have been identified.

Principal risks and uncertainty facing the Foundation

The Foundation’s ability to fundraise has been significantly impacted by the Covid-19 pandemic and fundraising efforts have focused on areas of fundraising that have been possible, such as grants and trusts and individual giving. As lockdown restrictions begin to ease the Foundation is hopeful that it will be able to generate funds from events and community fundraising as the year progresses. The Foundation’s reserves policy is designed to ensure that the Foundation can continue to meet its objectives under these circumstances.

The Foundation considers the valuation of its investments and any decline in market values that would negatively affect fund balances, as a risk. The Charitable Funds Committee meet regularly with the investment advisors and receive quarterly updates to allow them to review the performance of the investments and the risk level associated with them. The current category of risk is four to five (low to moderate). The Foundation’s reserves and investment policies are designed to ensure that no unnecessary risks are taken and the investments continue to support the Foundation to meet its objectives.

Internal controls

The Corporate Trustee has overall responsibility for ensuring that the organisation operates an appropriate system of controls, financial and otherwise, to provide reasonable assurance that:

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• The Foundation is operating efficiently and effectively.

• Its assets are safeguarded against unauthorised use or disposal.

• Proper records are maintained and that financial information used within the Foundation or for publications is reliable.

• The Foundation complies with relevant UK laws and regulations.

In this regard, the Corporate Trustee places reliance upon the Trust’s Audit Committee whose remit is to examine the effectiveness and appropriateness of the system of internal controls. This is achieved by:

• Reviewing and approving the audit plan, determining the types of internal and external audits to be undertaken, the areas of the organisation which are subject to review, and examining any findings that arise.

• Reviewing the nature and scope of internal & external audit, and any matters raised for the attention of management. Any significant findings or identified risks are examined so that appropriate action can be taken.

The systems of financial control are designed to provide reasonable, but not absolute, assurance against material misstatement or loss. These include:

• Regular review of the activities of the Fund and of its performance against pre-defined targets set by the Charitable Funds Committee.

• Formal delegation of authority to spend within clearly defined limits

• Identification and management of risks

• Scrutiny of internal and external audit.

Trustee and Advisors and Contact Details for the Foundation

As the Foundation operates under a Corporate Trustee model, the names of the directors are required to be disclosed:

Responsibility Name Post From To	Responsibility Name Post From To	Responsibility Name Post From To
Chair Ebrahim Adia
Vice Chair Tim Watkinson
Non-Executive Director Ann Pennell
Non-Executive Director Geoff Rossington
Non-Executive Director Kate Smyth
Non-Executive Director Paul O’Neill
Non-Executive Director Jim Whitaker
Non-Executive Director Tricia Whiteside
Chief Executive Officer Kevin McGee	01/09/2021
Chief Executive Officer Karen Partington		31/08/2021
Finance Director/DeputyChief Executive Jonathan Wood
Medical Director Geraldine Skailes
Nursing,Midwiferyand AHP Director Sarah Cullen
Strategyand Workforce and Education Director Karen Swindley
Chief OperatingOfficer Faith Button
Chief Information Officer for the ICP Stephen Dobson
Director of Continuous Improvement Ailsa Brotherton
Director of Service Development(Interim) GaryDoherty	01/12/2020
Service Development Director Adrian Griffiths		26/11/2020

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Charitable Funds Committee members:

Non-Executive Director(Chair of Committee)	Geoff Rossington
Medical Director	Geraldine Skailes
Nursing,Midwiferyand AHPs Director	Sarah Cullen
Finance Director/DeputyChief Executive	Jonathan Wood
Non-Executive Director	Tricia Whiteside
Non-Executive Director	Kate Smyth

All members have been in post since 1 April 2020 unless otherwise stated.

Rosemere Management Committee members:

Non-Executive Director	Tim Watkinson	Lancashire Teaching Hospitals NHS FT
Lead Clinician for Oncology	Ian Arthur	Blackpool Teaching Hospitals NHS FT
Lead Cancer Nurse	Jessica Jones	Blackpool Teaching Hospitals NHS FT
Consultant Urologist	Rosie Blades	Lancashire Teaching Hospitals NHS FT
Lead Clinician for Cancer	Tarek Hany	Lancashire Teaching Hospitals NHS FT
Lead Cancer Nurse	Anne Tomlinson	Lancashire Teaching Hospitals NHS FT
Radiotherapy Manager	Vacant post	Lancashire Teaching Hospitals NHS FT
Lead Cancer Clinician	Sarah Hauxwell	University Hospital of Morecambe Bay NHS FT
Lead Cancer Nurse	Alison Scott	University Hospital of Morecambe Bay NHS FT
Clinical Director for Cancer Services	Daren Subar	East Lancashire Hospitals NHS T
Cancer Services Manager	Will Wood	East Lancashire Hospitals NHS T
Head of Rosemere and Fundraising	Daniel Hill	Rosemere Cancer Foundation
Assistant Finance Director	Bhimji Patel	Lancashire Teaching Hospitals NHS FT
Volunteer Representative	John Hodgson	Lay Member
Chair	Peter Mileham	Lay Member

Registered Charity Number and name:

Registered Charity Number and name: 1131583 The Rosemere Cancer Foundation Principal Office address Royal Preston Hospital Sharoe Green Lane Fulwood Preston PR2 9HT

Head of Charities

Paula Wilson e | [e-mail]

Head of Rosemere and Fundraising

Daniel Hill e | [e-mail]

Finance Office address:

Lingmell House Water Street Chorley PR7 1EJ

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The following advisors were retained by the Foundation in 2020/21:

Bankers

Auditors

National Westminster Bank PLC Beever and Struthers 35 Fishergate Suite 9b Preston The Beehive Lions Drive PR1 2BY Shadsworth Business Park Blackburn BB1 2QS

Investment Advisors

Solicitors

Brewin Dolphin Securities Ltd Hempsons PO Box 512 Portland Tower National House Portland Street 36 St Anne House Manchester Manchester M1 3LF M60 2EP

7. Financial Review

The Foundation’s annual accounts have been produced in accordance with FRS102, as were the previous years. Therefore, no adjusting entries were required for the comparative year.

The charity is reporting a surplus for the year, after adjustments for market value gains or losses on investments, of £129k. (2019/20: £282k).

Incoming resources of £706k were £508k lower than 2019/20. This represents a 42% decrease largely due to the impact of the pandemic on the Foundation’s ability to fundraise.

• Income from donations and legacies of £499k was £102k less than the previous year. However, refocussing efforts on grant and trust funding applications generated income of £82k compared to £36k the previous year.

• Other trading income was nil for 2020/21 as the Rosemere Coffee Shop closed mid-March 2020 and remained closed throughout the year due to the lockdown restrictions and to protect cancer patients that attend appointments at the Cancer Centre and the volunteers that run it.

• Investment income was £1k more than last year, interest rates remained low and dividend income received was similar to the previous year as the portfolio aims for capital growth more than income.

• Income from charitable activities was £196k (62%) lower than last year as lockdown restrictions impacted on the charity’s ability to fundraise. This resulted in the events calendar for the year effectively being cancelled, although some events went virtual.

The investment portfolio performed well during the year after the markets that were significantly affected in March 2020 by the Covid-19 pandemic recovered to pre-pandemic values. An unrealised loss of £29k at the end of 2019/20 became an unrealised gain of £114k in 2020/21. This was off-set by an actual loss on the sale of investments of £4k totalling net gains for the year of £110k.

As the Foundation’s ability to fundraise was impacted by the pandemic the Trustee took action to reduce operating expenditure during the year and fundraising staff were redeployed to other roles in the Trust. This resulted in a reduction of 30% for fundraising staff costs of £138k for 2020/21.

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Support costs of £116k were £23k less than 2019/20, a decrease of 17%. This is mainly due to the reduced apportionment of the cost of the Head of Charities as they spent more time managing Lancashire Teaching Hospitals Charity.

Net current assets of £1,314k were £27k higher than the prior year as a consequence of the operational surplus and cash not being invested in light of existing spending commitments and the uncertainty as a result of the pandemic that was managed with the suspension of funding bids during 2020/21.

Total Charity funds were therefore £129k higher than 2019/20 at a level of £1,705k; required to fund the Foundation’s outstanding commitments for various projects and items of equipment.

Going Concern

The Trustee considers that there are no material uncertainties about The Rosemere Cancer Foundation’s ability to continue as a going concern. Whilst the Covid-19 pandemic impacted on the charity’s ability to fundraise and had a significant impact on income. As a grant making charity with ongoing commitments, the Trustee expects that the amount of grants that can be made in 2021/22 will remain low rather than affecting the charity’s ability to continue as a going concern.

Reserves Policy

The charity has a reserves policy which was reviewed in March 2021. The Charity has considered the level of reserves to be held for the prudent management of its working assets, commitments and contingencies.

Reserves are defined as funds that are freely available to fund the day-to-day operation of the charity and are not subject to commitments or other restrictions. The Trustee requires that reserves are available to cover the following:

• Unrealised gains on investments recognised in the accounts

• Provision for short-term commitments and ongoing programmes and

• Six months of operating expenditure

• At 31st March 2021 the Charity held unrestricted reserves of £1,705k (2019/20: £1,576k).

The cumulative unrealised gain on investments that has been recorded in the accounts for the Foundation is £85k with £114k gain recognised in 2020/21 (2019/20: loss £29k).

The Trustee aims to maintain free reserves in unrestricted funds at a level which equates to approximately six months of operating expenditure £228k (2019/20: £200k). The Trustee considers that this level will provide sufficient funds to respond to delays or changes in applications for grants and to ensure that support and governance costs are covered.

The Charity currently has commitments of £1,170k (2019/20: £1,596) including £816k for the refurbishment of the Ribblesdale Ward that started in March 2021 and is expected to be completed by November 2021. The amount of reserves held after making allowances for these commitments and free reserves is £222k (2019/20: deficit £220k). This is largely due to the suspension of funding bids and the removal of commitments that were not deliverable under the Covid restrictions.

The level of reserves is continually monitored by the Trustee and the policy will be reviewed at least every two years.

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Investment Policy

The policy is reviewed annually; it was last reviewed at the Charitable Funds Committee meeting that took place in June 2021, when Brewin Dolphin were in attendance.

The Charity’s investments are held in stocks and shares and are managed by a well-respected investment management company, Brewin Dolphin. The Trust maintains a strict control over investments, laying down a well-structured framework within which Brewin Dolphin must operate in order to minimise the risks associated with investments.

Overseas equities should not exceed 15% of the total holding of equities and investments in negotiable instruments known as “derivatives” are not permitted in any circumstances.

Investment in tobacco, alcohol and armaments is prohibited. If it should come to light that a company has become involved in unethical practices the Corporate Trustee should be consulted with a view to selling the investment.

The market value of managed funds shall not exceed 75% of the total charitable fund reserves.

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Corporate Trustee Responsibilities Statement

The Corporate Trustee are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). They are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the Charity and enable them to ensure that financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the Trust Deed. 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.

The law applicable to charities in England and Wales requires the Trustee to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Charity and of the incoming resources and application of resources of the Charity for the period. In preparing these financial statements, the Trustee is required to:

• Select suitable accounting policies and apply them consistently;

• Observe the methods and principles in the charities SORP (FRS 102);

• Make judgements and estimates that are reasonable and prudent;

• State whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;

• Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Charity will continue in business.

The Corporate Trustee is responsible for the maintenance and integrity of the Charity and financial information. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

The Corporate Trustee confirms that there is no relevant audit information of which the Charity’s auditors are unaware and they have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the Charity’s auditors are aware of that information.

By order of the Corporate Trustee

Signed

Ebrahim Adia

Ebrahim Adia Jonathan Wood Trustee Chair Date: 01.10.2021 Date: 01.10.2021

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Independent Auditor’s report

Independent Auditor’s Report to the Trustee of The Rosemere Cancer Foundation.

Opinion

We have audited the financial statements of The Rosemere Cancer Foundation “the parent charity” and its subsidiary “the group” for the year ended 31 March 2021 which comprise the Consolidated Statement of Financial Activities, the Consolidated Balance Sheet, the Parent Balance Sheet, the Consolidated Cash Flow Statement and the related notes. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (United Kingdom Generally Accepted Accounting Practice).

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.

In our opinion, the financial statements:

• give a true and fair view of the state of the charity’s affairs as at 31 March 2021 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 Charities Act 2011.

Basis for opinion

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

Conclusions relating to going concern

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

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

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

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Other information

The other information comprises of the information included in the annual report, other than the financial statements and our auditor’s report thereon. The Trustee is responsible for the other information. Our opinion on the financial statements does not cover the other information and 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:

• the information given in the trustee’s report is inconsistent in any material respect with the financial statements; or

• proper accounting records have not been kept; or

• the financial statements are not in agreement with the accounting records; or

• we have not received all the information and explanations we require for our audit.

Responsibilities of trustees

As explained more fully in the Corporate Trustee Responsibilities Statement set out on page 17, the trustee is responsible for the preparation of the group and parent charity financial statements, and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine what 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 Trustee is 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 Trustee either intends 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

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.

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

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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 specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud is detailed below:

The 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 non-compliance 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 computer component manufacturing and supply 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 Charities Act 2011, taxation legislation, data protection, anti-bribery, employment, environmental and health and safety legislation.

• we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence.

• 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.

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

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

• performed analytical procedures on specific balances for which robust, substantive analytical procedures have been undertaken to identify any unusual or unexpected relationships.

• tested journal entries to identify unusual transactions.

• investigated the rationale behind significant or unusual transactions.

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

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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 auditor’s report.

Use of our report

This report is made solely to the parent charity’s Trustee, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity’s Trustee 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 for anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Beever and Struthers, Statutory Auditor

Beever and Struthers is eligible to act as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.

Suite 9b The Beehive Lions Drive Shadsworth Business Park Blackburn BB1 2QS

Date: 8 October 2021

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Annual Accounts 2020/21

8. Financial Statements

The Rosemere Cancer Foundation Consolidated Statement of Financial Activities for the year ended 31 March 2021

	2020/2021		2019/2020
Notes Income and endowments from: Donations and legacies 3.1 Charitable activities 3.2 Other trading activities 3.3	Unrestricted Total Funds Funds £000 £000 499 499 196 196 - - 11 11 706 706 237 237 450 450 687 687 110 110		Unrestricted Total Funds Funds £000 £000 601 601 520 520 83 83
Investments 3.4			10 10
Total incoming resources Expenditure on: Raising funds 4			1,214 1,214 460 460
Charitable activities 5			448 448
Total expenditure			908 908
Net gain / (loss) on investments 11.2			(24) (24)
Net income / (expenditure) Net movement in funds Reconciliation of Funds Total funds brought forward Total Funds carried forward	129 129 129 129 1,576 1,576 1,705 1,705		282 282 282 282 1,294 1,294 1,576 1,576

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Annual Accounts 2020/21

The Rosemere Cancer Foundation Consolidated Balance Sheet as at 31 March 2021

Notes Fixed Assets Tangible assets 10 Investments 11 Total Fixed Assets Current Assets Inventories 13 Debtors 14 Cash and cash equivalents 15 Total Current Assets Liabilities Creditors falling due within one year 17 Net Current Assets Total Assets less Current Liabilities Total Net Assets The Funds of the Charity Unrestricted income funds Total Charity Funds	Unrestricted Total at 31 Funds March 2021 £000 £000 3 3 387 387 390 390 - - 6 6 1,534 1,534 1,540 1,540 225 225 1,315 1,315 1,705 1,705 1,705 1,705 1,705 1,705 1,705 1,705	Total at 31 March 2020 £000 4 285 289 - 5 1,336 1,341 54 1,287 1,576 1,576 1,576 1,576

The financial statements on pages 22 to 36 were approved and authorised for issue by the Board of Trustees on the 21st September 2021 and approved on its behalf by the Charitable Funds Committee.

Signed:

Date: 1st October 2021

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Annual Accounts 2020/21

The Rosemere Cancer Foundation Parent Balance Sheet as at 31 March 2021

Notes Fixed Assets Investments 11 Total Fixed Assets Current Assets Inventories 13 Debtors 14 Cash and cash equivalents 15 Total Current Assets Creditors falling due within one year 17 Net Current Assets Total Assets less Current Liabilities Total Net Assets The Funds of the Charity Unrestricted income funds Total Charity Funds	Unrestricted Total at 31 Funds March 2021 £000 £000 387 387 387 387 - - 16 16 1,527 1,527 1,543 1,543 225 225 1,318 1,318 1,705 1,705 1,705 1,705 1,705 1,705 1,705 1,705	Total at 31 March 2020 £000 285 285 - 22 1,320 1,342 51 1,291 1,576 1,576 1,294 1,294

The financial statements on pages 22 to 36 were approved and authorised for issue by the Board of Trustees on the 21st September 2021 and approved on its behalf by the Charitable Funds Committee.

Signed:

Date: 1st October 2021

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Annual Accounts 2020/21

The Rosemere Cancer Foundation Consolidated Cash Flow Statement for the year ended 31 March 2021

Notes Cash flows from operating activities: Net cash provided / (used) in operating activities 19 Cash flows from investing activities:	Total at 31 March 2021 £000 179 - 11 80 (72) 19 198 1,336 1,534	Total at 31 March 2020 £000 271
Interest received 3.4 Dividends received 3.4 Proceeds from sale of investments 11.1 Purchase of investments 11.1		1 9 152 (147)
Net cash provided by investing activities:		15
Change in cash and cash equivalents in the reporting period		286
Cash and cash equivalents at the beginning of the reporting period 16 Cash and cash equivalents at the end of the reporting period		1,050 1,336

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9. Notes to the Financial Statements

1. Accounting policies

1.1 Basis of preparation

The financial statements of the charity are presented in £ Sterling, rounded to the nearest thousand and have been prepared under the historical cost convention, with the exception of investments which are included at fair value.

The financial statements have been prepared in accordance with the 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 (FRS102) (effective 1 January 2015) - Charities SORP (FRS102), the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS102) and the Charities Act 2011.The Charity constitutes a public benefit entity as defined by FRS102.

1.2 Going concern

The trustee considers that there are no material uncertainties about The Rosemere Cancer Foundations’ ability to continue as a going concern. The Covid-19 pandemic has had an impact on the charity’s fundraising income for unrestricted funds. As a grant making charity with few on-going commitments, this will impact on the new grants that can be made in the short term rather than affecting the charity’s ability to continue as a going

This year the foundation has returned to a surplus against existing reserves of £226k (2019/20: deficit £220k), after making allowances for future commitments and free reserves of £309k (2019/20: £200k). The trustee expects that the amount of grants that can be made in 2021/22 will remain low but expects that projects that have been delayed as a result of the pandemic will resume.

In future years, the key risks to the foundation are a fall in income from donations or investment income but the trustee has arrangements in place to mitigate those risks (see the risk management and reserves sections of the annual report for more information).

1.3 Critical judgements in applying accounting policies

In the application of the Foundation's accounting policies, which are described in notes 1.1 to 1.22, the Trustee is required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The key judgements are those policies relating to incoming resources (notes 1.7 and 1.8), recognition of expenditure and associated liabilities as a result of grant (note 1.11) and fixed asset investments (note 1.16). The Trustee does not consider there are any sources of estimation uncertainty requiring disclosure beyond the accounting policies listed below.

1.4 Key estimations

The value of potential legacies disclosed in note 20. Contingent assets and liabilities is estimated using information received from solicitors and current property market valuations.

1.5 Funds structure

Where there is a legal restriction on the purpose to which a fund may be put, the fund is classified as a restricted fund or an endowment fund.

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1. Accounting policies (continued)

1.5 Funds structure (continued)

Restricted funds are those where the donor has provided for the donation to be spent in furtherance of a specified charitable purpose. Endowment funds arise when the donor has expressly provided that the gift is to be invested and only the income of the fund may be spent.

Those funds which are neither endowment nor restricted income funds are unrestricted income funds which can be analysed between designated (earmarked) funds where the trustees have set aside amounts to be used for specific purposes or which reflect the non-binding wishes of donors, and unrestricted funds which are at the trustees' discretion.

The Rosemere Cancer Foundation has one unrestricted fund.

1.6 Basis of consolidation

The group financial statements consolidate the results of the Foundations' trading subsidiary, The Rosemere Coffee Shop Ltd, on a line by line basis. Advantage has been taken of the SORP and the parent charity's own income and expenditure has not been disclosed in these financial statements. The income of The Rosemere Cancer Foundation was £706k (2019/20: £1,214k), giving rise to a surplus of £129k (2019/20: deficit £282k).

Subsidiary companies are exempt from the requirement of the Companies Act 2006 relating to the audit of the individual accounts by virtue of S479A.

1.7 Incoming resources

All incoming resources are recognised once the charity has entitlement to the resources, it is probable that the resources will be received and the monetary value of the incoming resources can be measured with sufficient reliability.

Where there are terms or conditions attached to incoming resources, particularly grants, then these terms or conditions must be met before the income is recognised as the entitlement condition will not be satisfied until that point. Where terms or conditions have not been met or uncertainty exists as to whether they can be met then the relevant income is not recognised in the year but deferred and shown on the balance sheet as deferred income.

1.8 Incoming resources from legacies

Legacies are accounted for as incoming resources either upon receipt or where the receipt of the legacy is probable. Receipt is probable when:

• confirmation has been received from the representatives of the estate(s) that probate has been granted ▪ the executors have established that there are sufficient assets in the estate to pay the legacy and ▪ all the conditions attached to the legacy have been fulfilled or are within the charity's control.

If there is uncertainty as to the amount of the legacy and it cannot be reliably estimated, then the legacy is shown as a contingent asset until all of the conditions for income recognition are met.

1.9 Gifts in kind and donated services

Gifts in kind are recognised as a reasonable estimate of their fair value or where the monetary value of gifts cannot be reliably measured, they will be included in the accounts when the they are sold and the amount actually realised.

Donated services are measured and included in the accounts on the basis of the value of the gift to the charity. i.e. what the charity would pay in the open market for the services that are being donated.

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1. Accounting policies (continued)

1.10 Resources expended and irrecoverable VAT

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to each category of expense shown in the Statement of Financial Activities. Expenditure is recognised when the following criteria are met:

• there is a present legal or constructive obligation resulting from a past event ▪ it is more likely than not that a transfer of benefits (usually a cash payment) will be required in settlement ▪ the amount of the obligation can be measured or estimated reliably.

Irrecoverable VAT is charged against the category of resources expended for which it was incurred.

1.11 Recognition of expenditure and associated liabilities as a result of grant

Grants payable are payments made to linked, related party or third-party NHS bodies and non-NHS bodies, in furtherance of the charitable objectives of the funds held on trust, primarily relief of those who are sick.

Grant payments are accounted for on an accruals basis where the conditions for their payment have been met or where a third party has a reasonable expectation that they will receive the grant.

The trustee has control over the amount and timing of grant payments and consequently where approval has been given by the charitable funds committee on behalf of the trustee, grants are considered commitments. An appropriate designation is made for these commitments in the appropriate fund until payment is due to be made at which point the expenditure and liability is recognised in the accounts. Approved commitments of expected future expenditure are disclosed in note 21.

1.12 Allocation of support costs and overheads

Support costs are those costs which do not relate directly to a single activity including governance costs, that are costs which relate to the strategic as opposed to the day to day management of a charity.

These include some staff costs, costs of administration and external audit costs. Support costs have been apportioned between the cost of raising funds and charitable activities on the basis of expenditure incurred in relation to each category. The analysis of support costs and the apportionment is shown in note 7.

1.13 Fundraising costs

The costs of generating funds are those costs attributable to generating income for the foundation, other than those costs incurred in undertaking charitable activities or the costs incurred in undertaking trading activities in furtherance of the charity’s objects. The costs of generating funds represent fundraising costs together with investment management fees. Fundraising costs include expenses for fundraising activities and salaries and overhead costs paid to a related party, Lancashire Teaching Hospitals NHS Foundation Trust, shown in note 2.

Quarterly management fees are offset against commission charges. Fees that exceed the commission charge are deducted from the funds on deposit are shown in note 4.

1.14 Charitable activities

Costs of charitable activities comprise all costs incurred in the pursuit of the charitable objects of the foundation. These costs, where not wholly attributable, are apportioned between the categories of charitable expenditure in addition to the direct costs. The total costs of each category of charitable expenditure include an apportionment of support costs as shown in note 5.

1.15 Tangible fixed assets

Property, plant and equipment is capitalised if:

• It is held for use in delivering services or for administrative purposes

• it is probable that future economic benefits will flow to, or service potential will be supplied to the charity

• it is expected to be used for more than one financial year and its cost can be measured reliably

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1. Accounting policies (continued)

1.15 Tangible fixed assets (continued)

Equipment assets are carried at depreciated historic cost, as this is not considered to be materially different from fair value.

The Rosemere Coffee Shop has equipment assets that are depreciated on a reducing balance basis at 15% in order to write them off over their remaining useful life, in a manner which reflects the consumption of economic benefit or service potential of the assets.

1.16 Fixed asset investments

Investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value (market value) as at the balance sheet date using the quoted market bid price. The Statement of Financial Activities includes the net gains and losses arising on revaluation and disposals throughout the year.

The main form of financial risk faced by the foundation is that of volatility in equity markets and investment markets due to wider economic conditions, the attitude of investors to investment risk, and changes in sentiment concerning equities and within particular sectors or sub sectors.

All realised and unrealised gains and losses are combined in the Statement of Financial Activities and are taken as they arise. Realised gains and losses on investments are calculated as the difference between sales proceeds and opening carrying value or their purchase value, if acquired subsequent to the first day of the financial year. Unrealised gains and losses are calculated as the difference between the fair value at the year end and their carrying value.

1.17 Inventories

Inventories are valued at the lower of cost and net realisable value.

1.18 Debtors

Debtors are amounts owed to the foundation. They are measured on the basis of their recoverable amount. Prepayments are valued at the amount prepaid.

1.19 Cash and cash equivalents

Cash at bank and in hand is held to meet the day to day running costs of the charity as they fall due. Cash equivalents are short term, highly liquid investments, held in interest bearing savings accounts.

1.20 Creditors

Creditors and provisions are amounts owed by the foundation. They are recognised when the Foundation has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount.

Amounts which are owed in more than a year are shown as long term creditors.

1.21 Financial instruments

Financial assets and financial liabilities are recognised when the Foundation becomes a party to the contractual provisions of the instrument. All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

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1. Accounting policies (continued)

1.21 Financial Instruments (continued)

The foundation only holds 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.

1.22 Remuneration and benefits

No staff are directly employed by the Foundation. All staff engaged in the activities of the Foundation are employed by Lancashire Teaching Hospitals NHS Foundation Trust. The Foundation is recharged for individuals time spent engaged in either charitable activities, raising funds or providing support (e.g. back office functions) to the Foundation, shown in note 9.

All recharged staff members belong to the NHS Pension Scheme which is an unfunded defined benefit scheme, accounted for as a defined contribution scheme. The recharge from Lancashire Teaching Hospitals NHS Foundation Trust includes the employer contributions to that scheme. For more information on the NHS Pension Scheme refer to the Lancashire Teaching Hospitals NHS Foundation Trust annual report and accounts.

2. Related party transactions

The Rosemere Cancer Foundation is managed by the Corporate Trustee which is also the Board of Directors of Lancashire Teaching Hospitals NHS Foundation Trust which is the main beneficiary of the Foundation. During the year the Foundation made revenue and capital payments to Lancashire Teaching Hospitals NHS Foundation Trust of £471k (2019/20: £620k), including grants of £371k (2019/20: £183k).

The Foundation was recharged £243k (2019/20: £325k) for staff that worked for the foundation throughout the year, whose contracts are paid by Lancashire Teaching Hospitals NHS Foundation Trust. This includes accounting and administrative support provided to the Foundation at a cost of £21k (2019/20: £20k).

During the year none of the Trustees or members of the key management staff or parties related to them, have undertaken any material transactions with The Rosemere Cancer Foundation or received any benefit from the foundation in payment in kind. (2019/20: £nil).

As at 31 March 2021 £36k (2019/20: £44k) was owed to Lancashire Teaching Hospitals NHS Foundation Trust.

The Trustee has not purchased trustee indemnity insurance. (2019/20: £nil).

The Foundations' investment portfolio is pooled with that of Lancashire Teaching Hospitals Charity. The Foundation receives an apportionment of the income and expenditure related to the investments based on its share (28%) of the portfolio (2019/20: 25%).

3. Incoming resources

3.1 Income from donations and legacies

Donations Corporate donations Legacies Grants Total	Unrestricted 2020/2021 Funds Total £000 £000 300 300 41 41 76 76 82 82 499 499	2019/2020
		Total
		£000
		307
		74
		184
		36
		601

Donations of goods £10k are included in income valued at their market value. All of these donations have been distributed during the year.

Comparatives have been restated to provide analysis of the material components of income as per the requirements of the SORP.

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3. Incoming resources (continued)

3.2 Charitable activities income

		Unrestricted	2020/2021	2019/2020
		Funds	Total	Total
		£000	£000	£000
	Community Fundraising Groups	137	137	309
	Blackpool Campaign	-	-	104
	Manchester 10k run	-	-	2
	Walk in the Dark	1	1	47
	Merchandise	12	12	21
	Others	46	46	37
	Total	196	196	520
In 2020/21 there were no face-to-face events which meant that most fundraising activity stopped. The fundraising team did
arrange on-line quizzes and other activities and all volunteers were asked not to arrange events due to Covid-19
restrictions.
**3.3 **	Income from other trading activities
		Unrestricted	2020/2021	2019/2020
		Funds	Total	Total
		£000	£000	£000
	Rosemere Coffee Shop Ltd sales	-	-	83

The Rosemere Coffee shop closed on the 13th March 2020 and has not yet reopened as it would not be economically viable under the current covid restrictions due to it being located in a clinical area.

3.4 Investment income

		Unrestricted 2020/2021 Funds Total £000 £000 11 11 - -	2019/2020
			Total
			£000
Dividend income			9
Bank account interest Total			1
		11 11	10

4. Analysis of expenditure on raising funds

Fundraising team Fundraising activities Advertising / marketing Event expenses Trading activities Investment management fees Support costs Total	Unrestricted 2020/2021 Funds Total £000 £000 138 138 4 4 40 40 11 11 1 1 4 4 39 39	2019/2020 Total £000 198 30 53 34 73 2 70
	237 237	460

5. Analysis of expenditure on charitable activities

The charity pursued its charitable activities by making grants. Support costs have been apportioned across the categories of charitable expenditure on the basis of the number of individual transactions and the associated transaction cost incurred by the charity.

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5. Analysis of expenditure on charitable activities (continued)

Patient Environment and Wellbeing Staff Education and Wellbeing Research Medical Equipment Total	Grant funded Support 2020/2021 Activity Costs Total £000 £000 £000 209 44 253 68 14 82 86 18 104 10 2 12 373 77 450	Grant funded Support 2019/2020 Activity Costs Total £000 £000 £000 145 27 172 27 5 32 129 23 152 78 14 92
		379 69 448

Grants were approved to carry out activities that will benefit patients and their families. The charity incurred expenditure with third parties in pursuance of those grants.

6. Analysis of grants

The Foundation does not make grants to individuals. All grants are made to the Lancashire Teaching Hospitals NHS Foundation Trust or other institutions to provide care of NHS patients in furtherance of our charitable aims. The total cost of making grants, including support costs is shown on the face of the Statement of Financial Activities and the actual disbursement for each category of charitable activity is disclosed in note 5.

Institutions receiving grant support: Lancashire Teaching Hospitals NHS FT Blackpool Teaching Hospitals NHS FT University Hospitals of Morecambe Bay NHS FT Total amount paid	Total £000 371 1 1 373 2020/2021	2019/2020 Total £000 183 104 92
		379

7. Allocation of support costs and overheads

Support and overhead costs are allocated between fundraising activities and charitable activities. Governance costs are those support costs which relate to the strategic rather than day to day management of the foundation. These costs are apportioned across the activities on the basis of expenditure incurred in relation to each category.

7.1 Analysis of total support costs

Financial Administration Information Technology Professional fees Administration costs Salary recharges External Audit Bank Charges Total Governance costs Support costs Total	Raising Charitable 2020/2021 funds Activities Total £000 £000 £000 7 14 21 1 2 3 - 1 1 1 1 2 29 55 84 1 3 4 - 1 1 39 77 116 Unrestricted 2020/2021 Funds Total £000 £000 41 41 75 75 116 116	Raising Charitable 2019/2020 funds Activities Total £000 £000 £000 10 10 20 2 2 4 1 1 2 1 1 2 54 53 107 2 2 4 - - -
	39	70 69 139
		2019/2020 Total £000 41 98 139

7.2 Auditor's remuneration

Total Audit Fees for 2020/21 were £3,207 (excluding VAT) which related solely to the audit with no additional work undertaken 2019/20 £2,950). The audit fee is included within governance costs.

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7. Allocation of support costs and overheads (continued)

7.3 Support cost allocation

Raising Funds Charitable Activities Total	Unrestricted 2020/2021 Funds Total £000 £000 39 39 77 77 116 116	2019/2020 Total £000 70 69
		139

8. Trustee remuneration, benefits and expenses

The members of Lancashire Teaching Hospitals NHS Foundation Trust board give their time freely and receive no remuneration for the work that they undertake in relation to the foundation. No expense claims were reimbursed to members of the board by the foundation in 2020/21. (2019/20: £nil). For more information on the Board members remuneration refer to the Lancashire Teaching Hospitals NHS Foundation Trust annual report and accounts.

9. Analysis of staff costs and remuneration of key management personnel

Salaries and wages Social Security costs Employer contributions Total Fundraising Finance Support Administration Support Total	2020/2021 £000 138 21 84 243 138 21 84 243	2019/2020 £000 254 35 36
		325
		198 20 107
		325

The average number of full-time and part-time employees during the year was 3 and 4 respectively (2019/20: 6 / 4), an estimated number of full-time equivalent employees of 7 (2019/20: 9). These employees are involved in fundraising and providing support to the charitable activities or the governance of the foundation.

The Rosemere Cancer Foundation considers its key management personnel to be the member of the Lancashire Teaching Hospitals NHS Foundation Trust board, acting on behalf of the corporate trustee and the Head of Charities and Fundraising and the Foundation's Chief Officer. The total employment benefits included employer pension contributions of the key management personnel were £59k (2019/20: £73k).

During the year some fundraising staff were temporarily redeployed to roles within Lancashire Teaching Hospitals NHS Foundation as they were unable to perform their fundraising roles due to the lockdown restrictions. They also worked collaboratively with Lancashire Teaching Hospitals Charity and costs were charged accordingly.

No employees had emoluments in excess of £60k (2019/20: none).

10. Tangible fixed assets

	Gross Cost as at 1 April 2020 Additions Gross cost at 31 March 2021 Accumulated depreciation as at 1 April 2020 Provided during the year Accumulated depreciation at 31 March 2021 Net book value at 31 March 2021 Net book value at 1 April 2020	2020/2021 £000 9.3 0.0
		9.3
		5.7 0.5
		6.2
		3.1 3.6

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Annual Accounts 2020/21

11. Fixed asset investments

11.1 Movement in fixed asset investments

Market value brought forward Add : acquisitions at cost Less : disposals Net (loss) / gain on investments Market value at 31 March 2020 Historic cost 11.2 Total gains / losses on investments Unrealised gain / (loss) on carrying value of the investments (Loss) / gain on sale of investments Net gain / (loss) on investments for the year 11.3 Fixed asset investments by type Listed equity investments Fixed interest investments Other investment funds Total market value	2020/2021 £000 285 72 (80) 110 387 354 2020/2021 £000 114 (4) 110 2020/2021 £000 87 254 46 387	2019/2020 £000 314 147 (152) (24)
		285
		314
		2019/2020 £000 (29) 5
		(24)
		2019/2020 £000 77 170 38
		285

The foundation manages these investment risks by retaining expert advisors and operating an investment policy that provides for a high degree of diversification of holdings within investment asset classes. All investments were made in companies listed on a UK stock exchange or incorporated in the UK and therefore all investments are treated as investment assets in the UK.

12. Subsidiaries

Rosemere Coffee Shop Limited (07913994) was incorporated on 18th January 2012 and is wholly owned by The Rosemere Cancer Foundation and is engaged in the catering trade. Details of its trading activities are set out below.

12.1 Subsidiary results Income Costs Net profit Retained in subsidiary 12.2 Summarised balance sheet of subsidiary trading company Fixed Assets Inventories Cash and cash equivalents Creditors: amounts falling due within one year Creditors: amounts falling due after more than one year	2020/2021 £000 - (1) (1) (1) 2020/2021 £000 3 - - - -	2019/2020 £000 83 (77) 6 6 2019/2020 £000 4 - 16 (3) (11)
Total net assets	3	6
Capital and reserves	(1)	6

These accounts have been prepared by McMillan & Co LLP, Chartered Accountants, 28 Eaton Avenue, Matrix Office Park, Buckshaw Village, Chorley, PR7 7NA.

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Annual Accounts 2020/21

13. Inventories

Inventories comprise finished goods held for resale

Inventories comprise finished goods held for resale
	Group	Parent
	2020/2021 2019/2020 £000 £000 - -	2020/2021 2019/2020 £000 £000
Total		- -
14. Analysis of debtors
Amounts falling due within one year.	Group	Parent
Debtors Accrued income Prepayments Loan due from subsidiary undertaking Total	2020/2021 2019/2020 £000 £000 1 2 1 - 4 3 - - 6 5	2020/2021 2019/2020 £000 £000 - 2 1 6 4 3 11 11
		16 22

15. Analysis of cash and cash equivalents

Charity bank account Subsidiary bank account Stockbroker deposit account Total 16. Analysis of changes in net debt Cash and Cash equivalents Total 17. Analysis of creditors	2020/2021 2019/2020 £000 £000 1,523 1,313 - 16 11 7 1,534 1,336 At 1 April 2020 £000 £000 1,336 198 1,336 198 Group Cash flows	2020/2021 2019/2020 £000 £000 1,516 1,313 - - 11 7 Parent
		1,527 1,320
		At 31 March 2021 £000 1,534 1,534
Amounts falling due within one year.	Group	Parent
Creditors	2020/2021 2019/2020 £000 £000 36 44 - 2 189 8 225 54	2020/2021 2019/2020 £000 £000 36 44 - - 189 7
Social Security and other taxes
Accruals and deferred income Total
		225 51

The creditor figure represents the sum owed at the end of the year by the charity to a related party, Lancashire Teaching Hospitals NHS Foundation Trust. There are no creditors falling due after more than one year.

18. Analysis of charitable funds movements

Unrestricted funds	Balance Incoming Resources Gains and Balance At 31 March Resources Expended Losses At 31 March 2,020 2,021 £000 £000 £000 £000 £000
	1,576 706 (687) 110 1,705

The unrestricted funds are used to fund activities in furtherance of the foundation's objectives.

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19. Reconciliation of net income/(expenditure) to net cash flow from operating activities

	2020/2021 £000 129 1 (110) (11) - (1) 171 179	2019/2020 £000
Net income / (expenditure) for 2020/21 (as per the SOFA)		282
Depreciation Loss / (gain) on investments Dividends, interest and rents from investments Decrease / (increase) in inventories Decrease in debtors (Decrease) / increase in creditors		- 24 (10) 62 1 (88)
Net cash provided by (used in) operating activities
20. Contingent assets and liabilities
	2020/2021 £000
Legacies

21. Commitments

The Charity has the following outstanding commitments at the end of the year as they have made a provisional agreement to fund various projects and items of equipment. These have not been accounted for in the SOFA.

	2020/2021 £000	2019/2020 £000
Total commitments outstanding as at 31 March 2021 1,170 1,596 As described in note 6, the foundation awards a number of grants in the year. Included in commitments are many grants that are awarded and expected to be paid out in the next financial year as well as number of multi-year grants; those that relate to research and development or for funding specific posts are (£302k) that will be paid over a longer period. As the foundation has control over the award and timing of payment of grants, they remain commitments until there is certainty about the payment that will be funded from existing and future reserves. In March 2021 work finally got underway on the refurbishment of the Ribblesdale ward, the Oncology Inpatient Ward at Royal Preston Hospital; the project had suffered from delays due to its sheer scale and complexity. The commitment as at the 31st March currently stands at £816k and it is expected that the project will be completed by November 2021.

As described in note 6, the foundation awards a number of grants in the year. Included in commitments are many grants that are awarded and expected to be paid out in the next financial year as well as number of multi-year grants; those that relate to research and development or for funding specific posts are (£302k) that will be paid over a longer period.

22. Events after the reporting period

There are no adjusting events after the reporting period.