Annual Report and Accounts 2023/24 # **Great Ormond Street Hospital Children’s Charity Annual Report and Accounts** ## **2023/24** 1 Annual Report and Accounts 2023/24 ## Contents ## Trustee’s Report Our purpose .................................................................................................................................................. 3 Welcome from the Chair ............................................................................................................................... 4 Welcome from the Chief Executive ............................................................................................................... 5 Charitable objects .......................................................................................................................................... 6 Our year in numbers ...................................................................................................................................... 7 Impact............................................................................................................................................................ 8 Our new impact framework ................................................................................................................ 8 Impact: Research .............................................................................................................................. 10 Impact: Patient, family and staff support ......................................................................................... 15 Advocacy: A bolder voice on issues impacting children and families at GOSH ................................ 20 Income ......................................................................................................................................................... 22 The Children's Cancer Centre and _Build it. Beat it._ appeal .......................................................................... 25 Our enablers ................................................................................................................................................ 27 Environmental, Social and Governance (ESG) ............................................................................................. 28 Introduction ...................................................................................................................................... 28 Environmental .................................................................................................................................. 29 Social ................................................................................................................................................. 35 Governance ....................................................................................................................................... 39 Our People ................................................................................................................................................... 72 Financial Review .......................................................................................................................................... 79 Legal and administrative details .................................................................................................................. 87 Statement of Trustees’ responsibilities ...................................................................................................... 89 Independent auditors’ report to the members of Great Ormond Street Hospital Children’s Charity ......... 90 Financial Statements ................................................................................................................................... 93 Notes to the financial statements ............................................................................................................... 96 The information included in the sections from and including Charitable Objects to the Financial Review form the Strategic Report of the Trustees. 2 Annual Report and Accounts 2023/24 ## Our purpose 3 Annual Report and Accounts 2023/24 ## Welcome from the Chair 4 Annual Report and Accounts 2023/24 ## Welcome from the Chief Executive 5 Annual Report and Accounts 2023/24 ## Charitable objects - - - - - **----- Start of picture text -----**
Researching breakthrough cures and kinder treatments
Transforming care through digital and technological
innovation
Supporting resilience and wellbeing of patients and their
families
Providing a child and family friendly environment that
helps create the best possible experience
Supporting staff at the hospital to deliver
exceptional care
Amplifying the voices of seriously ill children and their
families
Sharing knowledge for the benefit of seriously ill children
everywhere
**----- End of picture text -----**
6 Annual Report and Accounts 2023/24 ## Our year in numbers ## IMPACT - - - - - - - - ## INCOME - - - ## PARTNERSHIP - - - - 7 Annual Report and Accounts 2023/24 ## Impact ## Our new impact framework - - - - 8 Annual Report and Accounts 2023124 The new framework is already helping us embed impact assessment and evoluation into the grants we award. For example, impact assessment was incorporated into our new Patient and Family Experience strategy from the outset. Interviews with GOSH fomilies allowed us to understand what matters most to patients and families and to adopt the language children and young people might use to describe the impact they would like charity funding to achieve. For example. feeling "comfortable" calm" like they are'cared for" and feel'as close to home as possible" when at the hospital. Our Theory of Change Th* h¥•$ •f 11 ¢hilth*th w*tr•thslwm¢d by enabling GOSH andthe child heahhcare tomnlunity to nlinimiselhÈ Impadol 111n￿￿3￿d M￿MISe¢Prx>￿nlty¢SIOr ill thildrento have everyday childhood experiqnce5 Chiklren and young ChildrBn andyoung P￿pIph￿ thildren and young Pe￿18 are morL Jtydprt... arnilie5 better able tofocu5 the r ner9ies on supporting children and youno people Re5eèrth¢ts haye mo¢¢ap4tstyto del1vortranston￿atwo 185earth stsff areML¥elu￿I￿datWtrt To embed the new impact framework successfully, next year we will focus on: Developing and refining key metrics to measure our impact against the outcomes outlined in our Theory of Change. Updating our current grant management processes, including application forms and progress reports, to collect better impact data from our gront holders. Using our impact framework to better inform our decisions on what to fund, so that our funding is even more impactful for our beneficiaries: children, young people, families, staff and researchers. Continuing to tell stories of our impact to bring to life the difference we make. Annual Report and Accounts 2023/24 ## Impact: Research 10 Annual Report and Accounts 2023124 discovery research. The Lift Off Grants are designed to help research reach a point where it can secure further funding to grow and thrive. We have always aligned our strategies with those of the hospital and the ICH. Now, we plan an even greater focus on working together, so that, collectively, we can identify and capitalise on more opportunities for further research and ensure our combined efforts achieve greater impact. Research offers hope, and our new fiv&year research strategy will spreod hope for beyond GOSH, to children and families nationally and around the world living with a rare or complex disease. Supporting new clinical trials focused on childhood cancers Despite advances in concer treatment and care for children and young people over the last few decades, some cancers remain hard to treat and too many lives are being lost. Of those who do survive, many live with lif+long side effects of their treatmenL including infertility, cognitive impairment and pain. Innovative and personalised treatments for children and young people with cancer have emerged- many with the support of GOSH Charity funding - but more research is needed to better understand the pathology of cancer in children and young people, to continue to tackle the challenges of this devastating illness, and to achieve more breakthroughs for more children and young people. Our analysis revealed only 2p out of every £1 spent on cancer research in the UK goes exclusively towards the fight against children's cancer GOSH Charity, together with the hospital and our academic research partner, the ICH, are committed to supporting research into the highest-risk and hardest-to-treat cancers, ond we will partner with organisations nationally to help us achieve this. We will partner with organisations nationally to help us achieve this. Children are not small adults- they need personalised treatments and dedicated research to ensure they receive the best possible healthcare and chance of medicol breakthroughs. This year, we ore excited to be funding two cancer trials aimed at tackling the ongoing challenge of treating relapsed acute lymphoblastic leukaemia (ALL). These trials will be testing new treatments for ALL for the very first time in children. Only 30- 500/0 of children with relapsed ALL survive their cancer The first trial, funded in collaboration with CRIS Cancer, will test the next generation of CAR T-cells in children with B-cell acute lymphoblastic leukaemia (B-ALL). While existing CAR-T therapies have revolutionised treatment for B-ALL some patients still relapse, meaning the cancer returns after a period of remission. Explanations for this have included the concer cells evolving to avoid detection by the CAR-T cells, or the CAR T- cells having too short a life span. The trial team, led by Professor PersisAmrolia, have designed the next generation of CAR T-cells, which recognise multiple protein targets and have an extended life span to address these challenges. Annual Report and Accounts 2023124 The second clinical trial, led by Dr Sora Ghorashian, aims to tackleT-cell acute lymphoblastic leukaemia (T-ALL), another challenging form of childhood blood cancer. To date, it hos not been possible to find a target expressed on cancerous T-cells but not on healthy T-cells.This means the CAR-Ttherapy targets the healthy T-cells as well as the cancerous ones wiping out the bodys immune system. However, researchers at UCL recently identified a unique protein found specifically on cancerous T-cells, and Dr Ghorashian and her team will now use this year's funding totest the effectiveness of a CAR T-therapy directed specifically at the newly identified protein in a phase-1 clinical trial. Excitingly, the second trial will run alongside an already-funded clinical trial in adults. The team will use the combined data from the adult and paediatric studies in tandem to create a more efficient trial design and enable a rapid route to patients, with substontial cost and time savings compared to running a separate study. If successful, this could pave the way for a new design of CAR-T trials. Global rapid genome collaboration improves lives and treatment for children with epilepsy An international research collaboration, including GOSH and the ICH, has shown that a technique known as rapid genome sequencing can provide a diagnosis for 43% of children with unexplained epilepsy and significantly benefit their core. Over 40/0 of children with unexplained epilepsy are diagnosed with rapid genome sequencing Published in The Lancet Neurology, this international study sequenced the genomes of 100 bobies under the age of one with unexplained seizvres from four countries (England, the US, Canada and Australia). The aim was to better understand the potential strengths of early, broad genome sequencing (o process which looks for changes across the entire genome) for infantile epilepsy. "Through a global collaboration of expert researchers, we have shown how this testing can be used, across four different healthcare systems, to ropidly diagnose children with epilepsy, finding an answer in over 40% and guiding treatment in over 50/00 of these children. This has the potential to impact many families across the world and provide much needed information to clinical teams in charge of their care." DrAmy McTague, UK study lead. honorary consultant paediatric neurologist at GOSH and clinician scientist at ICH Annual Report and Accounts 2023124 The study, called Gene-STEPS (Shortening Time of Evaluation in Paediatric epilepsy Services) is the first collaboration launched through the International Precision Child Health Partnership (IPCHIP), an international consortium comprising Boston Children's Hospital, Murdoch Children's Research Institute with The Royal Children's Hospital, The Hospital for Sick Children (SickKids) and ICH and GOSH. IPCHIP leverages each institution's expertise and genomic infrastructure to accelerate discovery and the development of therapies for children. The UK arm of the study was part-funded by GOSH Charity and the National Institute for Health and Care Research (NIHR) GOSH Biomedical Research Centre with support from Young Epilepsy. The GOSH team hope to bring this test into clinical service, giving families across the country access. Leo was born prematurely on 24 October 2021, and rapidly began to develop serious symptoms including seizures. Doctors struggled to understand what was wrong with Leo. and at six weeks old he was transferred to GOSH for specialist treatment and almost immediately enrolled in the IPCHIP study. Within two weeks of the first blood test taken as part of the trial, his family were told thot Leo had a very rare genetic diagnosis of BRAT1-reloted neurodevelopmental disorder caused by inheriting a faulty copy of the gene from both his parents.The mutation causes a very severe form of introctable epilepsy in children. There is currently no treatment for the condition and monagement of symptoms is incredibly difficult. Babies with this genetic epilepsy rarely survive beyond first six months of life. Leo was 79 days old when he passed awoy in Andy and Sofie's arms on 10 January 2022. "It Was completely and utterly heartbreaking but getting a diagnosis provided us with a reason. It allowed us to start processing. The diagnosis macle an impossible sitLJ(Jtion easier. We may not ever find a cure for BRA Tl but hcjving a diagnosis- an answer- was. for us, so powerful." Andy, Leo s dad Baby Leo at six weeks old. Annual Report and Accounts 2023124 Appointing a new chair to the Louis Dundas Centre for Children's Palliative Care The Louis Dundas Centre for Children's Palliative Care ILDC) is a centre of excellence in research, teaching and clinical practice in palliative care for children and young people. It was set up in 2009 by Ruth Kennedy and Bruce Dundas in memory oftheir son Louis Dundas, who sadly died of a brain tumour in 2008. The LDC has been charity- funded since it was established, with income primarily through the fundraising efforts of Ruth, her family and friends. The True Colours Trust has supported the academic leadership of the centre since 2009. GOSH Charity and the True Colours Trust this year announced 0 £500,000 five-year funding partnership towards the research programme of Professor Ulrika Kreicbergs, the new Chair in Palliative Care for Children and Young People at the LDC and ICH. Professor Kreicbergs is only the second person in the UK to hold this position, taking over from Professor Myra Bluebond-Langner, the inaugural True Colours Chair. To reflect the position's role in the wider Louis Dundas Centre and its new funding model, the name of the post has been changed from the True Colours Chair to the Louis Dundas Chair. Annual Report and Accounts 2023/24 ## Impact: Patient, family and staff support 15 Annual Report and Accounts 2023124 5tr¢¢1 H05piTal What inspired you to share your talent with the patients at GOSH? GOSH has always been on my radar. When I retired from the stage in December 2022,1 saw a post about GOSH Arts on the hospltals Instagrom and thought,"Oh my goodness this could be absolutely perfectl" It's something I've always wanted to do, so it was Just perfect timing. I knew I would love to dance for the children and families at the hospitol with everything they re going through and hoped it would be a welcome distraction. Tell us about a memorable moment you've had while performing for the patients at GOSH. There have been so many moments, I think every interaction is special. The old main entrance hos special memories. I danced there and as soon as I put on the music and started moving it was like the hustle and bustlejust came right down. It would just go quiet and it was peaceful. Everyone would just be looking at me, listening to the music and that sense of calm it brought to the hospital was Just amazing. How does dance contribute to the wellbeing of the young patients at GOSH? Apart from being a sort of distraction for the patients, I think it's actually a lot more than that- it brings them hope, which is such a beautiful thing. I think all these art forms, the artwork on the walls, the colours of the rooms and how they are decorated, it affects you and affects your mood. I think the same is true with ballet, so I feel like I'm spreading hope, which is an omazing thing to be able to do. Annual Report and Accounts 2023124 Infant feeding rooms in the Clinical Research Facility. commissioned by GOSH Arts In 2023, artist Enya Lachman-curl was commissioned to enhance the Clinical Research Facility at GOSH. Collaborating with architects Sonomann Toon, Enya was tasked with creating artwork that felt comfortable and homely. Her creations were designed to integrate into the existing architecture, while addressing the needs of parents who use the rooms to feed their babies or express milk. Enya's artwork was used on lightboxes and privacy curtains, and showcases her distinct style characterised by deeply saturated brushstrokes that evoke the vibrant colours and fluidity of nature. Drawing inspiration from botanical elements, the blues and purples in her pieces are inspired by the milkwort flower, which has a mythical association with increased milk production in cows. The greens in her compositions pay tribute to lettuce, whose Latin name, lactuco stems from'lac," meaning milk, referencing its milky sap. Thanks to Enya's artwork, the Clinical Research Facility is now filled with a sense of tranquillity and connection to nature. Annual Report and Accounts 2023124 There are infant feeding rooms in Seahorse, Squirrel, Leopard, Flamingo, Bear, Eagle and Alligator wards. Our increasing support for GOSH staff During 2023124 we continued to provide support to Staff at the hospital in o range of ways. This is important so they can, in turn, continue to provide extraordinary care and services to patients and families. This year, in addition to renewing our annual funding for the Staff nursery, Staff holiday playscheme, Staff health and wellbeing, GOSH Arts (culture club and GOSH Choir) and Stoff Hardship Fund, we introduced several new areas of funding to our portfolio. This includes funding for a hospital wellbeing administrator and a wellbeing officer, who will co-ordinate wellbeing services and providers, linking staff with available resources support. We have committed to the redevelopment of a dedicated space for staff and wellbeing services, colled 'The Hive,, which opened in October 2023. The Hive provides a private space for staff seeking confidential access to support services such as the Payroll and Pension Clinic, Staff Networks and EDI clinic, and access to resources around wellbeing and financial support. This face-to-face service will allow support to be provided to all staff, including those with limited access to technology. NH5 The HIVE O Annual Report and Accounts 2023/24 - - - 19 Annual Report and Accounts 2023/24 ## Advocacy: A bolder voice on issues impacting children and families at GOSH 20 Annual Report and Accounts 2023124 Establishing our foundation in advocacy to empower change and improve outcomes We have identified a number of organisations With mutually aligned goals, and we are extending our relationships with leading organisotions and alliances, such as the Inequalities in Health Alliance ond the Children and Young People's Health Policy Influencing Group, which enable us to participate as a collective voice in child health. Partnering with the hospital to address children's palliative care We have continued to partner with the hospitol to provide public offairs and advocacy support in addressing issues in paediatric palliative care, particularly historic challenges in funding and ensuring every family receives the care and support they need, where and when they need IL The Louis Dundas Centre at GOSH provides specialised paediatric care services across London and the Southeast of England in multiple settings, making it a unique centre of excellence. In 2023 we conducted a detailed review of children's palliative care, focused on the provision of care by the newly established local integrated care boards (ICBS). This evidence demonstrated some clear gaps around access and care. This work identified potential future opportunities for how the Charity may be able to support palliative care through collaborations with other organisations in the paediatric palliative care sector. "One of the most important aspects of children's palliative care is choice. Every child and family cared for at the Louis Dundas centre is unique- their needs are all different, and our gocil is to ensure we respect their wishes and provide the best care and quality of life during a very difficult time." Julie B(iyliss, Head of Service and Nurse Consultant in Paediatric Palliative Care at GOSH Developing the broader advocacy approach To ensure we are taking a considered, evidencfrbased opproach to advocacy, we conducted a review of different topics that impact GOSH families, and we are testing these themes with external audiences and exploring the potential for future cross- organisational programmes led by the charity. For example, in September 2023, GOSH Chority issued a press release raising awareness that of every £1 spent on cancer research, only 2p is spent on research solely focused on children's cancers, and collectively we think that this needs to increase. National and regional newspapers and press outlets covered this story, and the issue was raised during a Parliamentary hearing focusing on the vast underfunding in children's cancer research. This more considered, evidence-based approach, as well as navigating external changes in the commissioning context has required us to take a more extensive view of the child health landscape and some of the levers needed for change to be an effective voice for our beneficiories. As a resulL the long-term advocacy strategy to address child health inequities that we had set out to deliver this year will be delivered next year. By building on this work, we will have the foundations in place to launch a cross organisational public advocacycampaign, in partnership with the Hospital and ICH, in 2025126. Annual Report and Accounts 2023/24 ## Income 22 Annual Report and Accounts 2023124 We olso spoke to creators at streaming conferences and events, ensuring we have o presence at the heart of a rapidly growing industry and making personal connections with those who fundraise for us. To support our efforts in the streaming space, we established a new volunteer board comprised of gaming and streaming industry experts to support driving additional income towards the Children's Cancer Centre. The board has grown to 10 dedicated members. Their objectives are to elevate the choritys profile within the gaming community, add additional value to the programmes that support GOSH patients and families and drive innovative fundraising initiatives through partnerships with influencers, streamers and brands. "Our GOSH Goming Board illustrates the impactful nature. generosity and amazing opportunities the gaming sector has to offer, providing hope and asslstance to seriously ill children. By rallying the gaming eco-system and community. our board can significantly boost the funds and resources needed by the charity giving children a brighter future" Sam Kemp, Chair of GOSH CharityGaming Board. Director of Gaming, EE Finally, we made some exciting progress with the rights of Peter Pan, which were generously gifted to GOSH by the renowned playwright and authorjm Barrie in 1929. GOSH Charity continues to benefit from this incredible legacy, and 2023 saw multiple Peter Pan Christmas artivations in stately homes and garden centres across the country. We're delighted to share that Blenheim Palace will be supporting us in this way in 2024. We also witnessed a bumper yeor of Peter Pan related pantomimes and West End productions, from the Play that Goes Wrongto the Panto at the Palladium, and many other productions across the UK. We signed a new literary and entertainment agent, The Blair Partnership, who will develop publishing, live events, film/TV and consumer products around our new Neverland brand. This will reinforce the hospital's link to Peter Pon and provide new revenue streams for the charity. We believe this programme of work marks the beginning of a new era for the way in which we maximise the generous legacy left to the hospital by the children's author all those years ago. Door-to-door fundraising is one of the most effective ways for us to raise much-needed money and engage with current and future supporters. But it must be done in the right way. We were therefore disappointed that in February, one of the door-to-door fundraising agencies operating on our behalf was subject to a Times newspaper Annual Report and Accounts 2023124 investigation which highlighted possible examples of fundraising practices and behaviours that do not comply with the high standards we expect Wetook these accusations extremely seriously and our immediate actions included suspending work with the subcontracted agency and conducting a full, independent investigation. We also immediately self-reported to the Fundraising Regulator and the Charity Commission. We are committed to taking any further action needed to ensure that door-to-door fundraising is always undertaken oppropriately. More information on how we work with agencies and the actions we took following the investigation can be found on page 68. Annual Report and Accounts 2023/24 ## The Children's Cancer Centre and _Build it. Beat it._ appeal 25 Annual Report and Accounts 2023124 supporters. Supporters like Matthew Ponsonby, member of the GOSH Chority Corporate Partnerships Board, who rowed 1,705 nautical miles across the Atlanticto raise over£12,000 for the centre. He said: "It was an extraordinary trip for an extroordinary cause. A year later, and the 36 days of being o very small speck in the magnificent but rather cold ond foggy North Atlantic rowing 12 hours a day has become like a rather odd dreaml However, everyone's am(Izingly generous donations will make a permanent difference to GOSH so thank you." While we are blown away by the support we have seen so far, we recognise that there is still a long way to go to reach our targeL all during an ongoing cost-of-living crisis. But we know that every donation, big or small, makes the world of difference to the five fomilies in the UK who receive the devastating news that their child has cancer every single day.There is still a lot of work to be doneto help make our vision of a world-leading Children's Cancer Centre a reality, and we can only realise this vision with more supporters, donors and partners by our side. Annual Report and Accounts 2023/24 ## Our enablers 27 Annual Report and Accounts 2023/24 ## Environmental, Social and Governance (ESG) ## Introduction 28 Annual Report and Accounts 2023/24 ## Environmental ## Ethical Investment 29 Annual Report and Accounts 2023/24 ## Looking forward ## Streamlined Energy and Carbon Report (SECR) 30 Annual Report and Accounts 2023124 Executive Summary Organisation description GOSH Charity provides charitable support to give seriously ill children the chance to fulfil their potential. They have operated out of one site and are landlord for a range of others ocross London during this reporting period. The Charity operates no fleet and instead, pays its staff to drive their own vehicles on business uses necessary (grey fleet). As a charitable institution, GOSH Charity is a company limited by guarantee, number 09338724, and o registered charity number 1160024. Their registered office is 40 Bernard Street, London, WC1N 1LE. Source of data-based report The report has been compiled from spreadsheets. billing dato, invoice data, inspection reports and totol mileage poid, extrapolated for miles. Fugitive Emissions According to maintenance reports, there have been no fugitive emissions or leaks of F gases (fluorinated gases) over the reference period. Trends in impacts should be clear to the reader Following continual reductions since the baseline, GOSH Charitys scope 1 C02e emissions have decreased this year and their scope 2 emissions have risen against last year. Scope 3 emissions have dropped substantially. See table below showing the last four years of C02e emissions in tonnes. Changes will also have been in part caused by the way that parent accommodation has been used and increased desk capacity at the Charity Office. Year ended 31 March 2021 Year ended 31 March 2022 Year ended 31 March 2023 Year ended 31 March 2024 Emissions Type (fn C02e) Sco Natural Gas Sco Electricit Sco Business Travel (Employee-owned veh icles) Total Inc F Gases 146 96.95 81.06 74.65 Location Based 124 71.60 35.75 59.10 0.15 2.49 0.86 269.8 168.7 119.3 134.6 This can be viewed in percentage terms as follows and demonstrates a positive direction of travel. It is not uncommon for absolute emissions to rise as organisations grow. Annual Report and Accounts 2023124 Tonnes of C02e Chan Percentage change es To 2021 C02e {%age) 54.2 45.8 To 2022 C02e (Yoage) 57.5 42.4 To 2023 C02e (•/oage) 67.9 30.0 To 2024 C02e (O/oage) 55.5 43.9 Sco Sco Sco Total 100.0 100.0 100.0 100.0 And by scopes, in terms of kwh from the baseline year 2020121 to date, the same trend con olso be seen. This indicates that the trend is, at least in parL as a result of the decarbonising of the national grid. It should be noted that the national grid emissions foctors hove increased this year, for the first time since 2014. GOSH Charity kwh by Year 9￿,0[1) 8Q).O(O 7¢XIJ)(X) 6CI)3)(0 5¢TIIKX) 41J)3)(0 3¢11,0( 2CO.OUI -111 I 11 471 983 9.LW 3.197 M•nsGas Oe¢irkity{1o¢ation Ba5all Tr￿Sport (Eryk>y¥ O*Tb T•tPkle4 2oVz)22 * 2(0?1￿23 •2a23124 Progress against targets As the fourth year of SECR for GOSH Charity, there are some significant changes which are set out in the full report. KPIS Key performance indicators for the Charity are employee numbers which for the year to 31 st March 2024 were 259, equating to 0.520kWh/employee. Explain how you are managing your impacts GOSH Charity management processes are independently assessed by CLS Energy (Consultancy) Ltd as their external consultant. The Company secretary is responsible for coordinating the Charity s complionce against SECR and reports to the Governance, Reputation, ond Risk Committee on compliance matters, who have delegoted authority on behalf of the Trustee Board in this orea. Annual Report and Accounts 2023124 Statement of risks and opportunities GOSH Charity is aware of its impact on the environmenL and os a Charity, is careful in the way in which it operates its premises. This is demonstrated in their emissions figure's trajectory. Whilst there is a very small increase between 2022123 and 2023124, the overall trend since the baseline in 2019120 is extremely encouraging as the Charity recovers post pandemic and adjusts to a new normal. Intensity ratios GOSH Charity has elected to use scope 1 and 2 and grey fleet scope 3. C02e (tonnes) by stoff numbers. They have chosen the metric as this is a common business metric for the industry sector. As can be seen in the graph that follows, the trend in emissions reductions over the four years, shows clearly here. Intensity Metrics (TnC02e/Employee) L279 OJ31 OA8 2021y21 202Y22 202V23 2023124 As such, the figures are: Tonnes of scope 1, scope 2 and scope 3. emissions per staff member 0.520 tonnes. GOSH Chority have not purchased carbon offsets as the Charity is focussed on delivering tangible and meaningful local measures to octively reduce their carbon (C02e) emissions. Annual Report and Accounts 2023124 Methodology Guidance followed in the production of this report has been the Greenhouse Gas Protocol. Relevont Government conversion factors have been used throughout. 5 Principles are observed during the production of this report: 1. Consistent methodologies have been used to allow for meaningful comparisons of environmental impact over time. 2. Data has been recorded in C02e (greenhouse gas emissions) utilising Government conversion factors 3. Any changes to the data, changes in the orgonisational boundary, methods, or any other relevant factors ore to be documented following this baseline. 4. Environmental impacts 5. Situations that may tigger or require a change in the baseline year. Annual Report and Accounts 2023/24 ## Social ## Looking forward 35 Annual Report and Accounts 2023/24 ## Corporate Social Responsibility ## Our Purpose and Public Benefit ## Modern Slavery 36 Annual Report and Accounts 2023124 GOSH Charity takes a zero-tolerance approach to slavery and human trafficking, and are resolute to identify and eliminate this, or ony elements of it from within our activities and supply chain. As in previous years, we continue to work with predominantly UK-based suppliers and require them to comply with UK legislation. Each year we continue to focus on how we engage with suppliers which operate in sectors and Jurisdictions at a higher risk from slavery and human trafficking. Our due diligence processes on prospective suppliers and other third parties we associate with are robust and undertaken on a proportionate, risk-based approach. Whenever we work with suppliers, it is on the basis that they, their employees and anyone they engage with. must comply with the principles set by the Charity. We adopt an approach of continuous improvement ond are committed to making sure all our staff have the support, training. ond awareness they need to work with suppliers who are aligned with our views and approach their activities ethically. We are aware that vigilance is important in these matters and ensure we have clear processes to enable us to quickly identify and address any issues reloted to our activities that may be associated with slavery and human trafficking. We continue to be committed to developing the protections we have in place and each year we release an updated version of our Modern Slavery Statement on our website, that builds on previous statements and reflects on progress, setting out our aims for the future. Annual Report and Accounts 2023/24 ## Safeguarding ## Workplace Health & Safety ## Treating People Fairly 38 Annual Report and Accounts 2023/24 ## Governance Compliance with Companies Act, Charities Act and Charities SORP 2019 Legal Structure and Governing Document, Related Parties and Subsidiary Companies 39 Annual Report and Accounts 2023/24 ## Trustees and Associate Trustees / Independent Committee Members - - - - - - - - - - 40 Annual Report and Accounts 2023124 On an annuol basis Trustees, Associate Trustees, and Independent Committee Members are given the opportunity to attend at least two supplementary knowledge/awareness sessions on key topics and they are encouraged to attend externally arranged training events relevant to their role with the Charity. In July 2023, Sandeep Katwala stepped down from his position on the Charity Board, as Deputy Chair of Trustees ond as Chair of Governance, Reputation and Risk Committee. Later in November 2023, David Craig stepped down from his position on the Charity Board. In March 2024, Mark Sartori stepped down from his position on the Charity Board. We would like to thank Sandeep, David and Mark for their considerable contributions to the Charity over their tenure with us. Annual Report and Accounts 2023/24 ## Trustees (01 April 2023 to 13 December 2024) Anne Bulford CBE .—~KKevin Thompson 42 Annual Report and Accounts 2023124 David Craig 1.to 23 November 2023) David Craig joined LSEG on completion of the Refinitiv-LSEG combination in January 2021 as Group Head of Dota and Analytics. David co- chairs the Taskforce on Nature-related Financial Disclosures (TNFD) endorsed by the G7 and G20. David is an Executive Fellow at London Business School department of Strategy and Entrepreneurship and co-chairs the UK-India Financial Partnership for TheCityUK, HMT and India Ministry of Finance. Josh Critchley (appointed 25 January 2024) Chair- Investment Committee (from 01 April 2024) Josh is a senior leader in financial services, having spent thirty years in investment banking advising Boards and management teams on a wide variety of complex strategic, financial and operational issues. He is currently Vice Choir of Global Investment Banking for the Royal Bonk of Canada and prior to that was their long-time Head of Investment Banking for Europe and Asia. Karima Fahmy David Germain Member ofr. Member of: Gronts and Impact Committee Finance and Resources and Committee Property and Development David has more than 30 years, Committee experience os a leader of global technology and Karima is a senior corporate lawyer and brings digital strategy. David is the Group Chief to the Property & Development Committee high Information Officer at QBE, the international level real estate experience including the insurer and reinsurer. Previously Dovid worked structuring, funding and delivery of real estate for a number of world-leading Financial Services investment and development projects. institutions in C-suite roles (RSA, General Electric, Previously General Counsel of Grosvenor Natwest Group, Deutsche Bank and Close Group, Karima currently holds non-executive Brothers). positions on the Board of Latimer Developments Limited, the Clarion Housing Group Investment Committee, the University of Cambridge's Property Board, and the University Board of Bournemouth University. Louise Justham Sandeep Katwalo ("to 18 July Member ofr. 2023) Governance. Reputation and Deputy Chair of the Board Risk Committee Chair- Governance. Reputation Louise is Vice President at Sony and Risk Committee Interactive Entertainment. Prior Member ofr. to this Louise was Global Marketing Director at Property and Development Committee the Body Shop and CEO at Easyfundraising. a socially focused online affiliate. Louise was also Sondeep spent 25 years as a lawyer with the CEO at Seatwave an online ticket marketplace global law firm Linklaters LLP where he was a which was sold in 2014 to Ticketmaster. Louise member ofthe Executive Committee and held digital marketing roles at Thomas Coo headed up the firm's EEMEA Region and India BSkyB ond Carphone Warehouse. business. Annual Report and Accounts 2023124 Professor Fiona Ross CBE (appointed 23 September 2023) Member ofr. Grants and Impact Committee Professor Fiona Ross CBE is Professor Emerita in Health ond Social Care at Kingston University, a governor of Westminster University and a former member of the REF2021 Equality and Diversity Advisory Panel. She hos a background in community nursing and social policy and has worked in leadership positions ot King's College London, St George's, University of London, as Dean at Kingston University and a Director of Research at the Leadership Foundation for Higher Education (now Advance HE). She has had executive roles leading equalities, commissioning research and delivering health and social care improvement across sectors. Mark Sartori ("to 31 March 2024) Chair- Investment Committee Member of: Property and Development Committee Mark has retired from a career in capital markets where he worked in European Equities for Credit Suisse and Morgan Stanley. Mark also built a European Equities business for the Royal Bank of Canada. Professor Sir Doug Turnbull Mike Wiseman Chair- Property and Chair- Research Strategy Development Committee Advisory Board Michael is the current Head of Doug wos appointed a Trustee in Office Leasing and former 2022 and is Chair of the Research Development Director at British Strategy Advisory Boord. He is Emeritus Land. Michael has 20 years, experience working Professor of Neurology at Newcastle University. on all ospects of large-scale mixed-use He was Director of the Wellcome Centre for development across the UK and has been with Mitochondrial Research and Director British Land since 2011. He has held a variety of MRC/BBSRC Centre for Ageing and Vitality until senior positions within the business and his retirement in 2020. currently leads on customer engagement across the office business. Michael has previously worked at ING Real Estate Development UK, Knight Frank, and Oak Holdings. Michoel is a member of the Royal Institution of Chartered Su rveyors. Annual Report and Accounts 2023/24 ## Associate Trustees 45 Annual Report and Accounts 2023124 Independent Committee Members Winnie De'Ath Tom Fitzgerald Member of: Member of: Governance. Reputation and Investment Committee Risk Committee (appointed 01 April 2023) (appointed 03 Jvly 2024) Tom has over 11 years, experience Winnie worked for WWF-UK in the fund management and WWF-International, as a industry. He joined EdenTree Communication and Brand Director, for over Investment Management in 2011 as an 30 years, having previously worked in Investment Analyst and now co-monoges a several London communication agencies number of the firm's Responsible & Sustainable with a wide-ronge of clients. Winnie has Global Equity strategies, including the experience of working for several charity Responsible and Sustainable Global Equity and foundations, as a Trustee ond in an Fund, the EdenTree Green Future Fund and the advisory capacity. "Sustainable Global Equities for a Just Winnie has managed campaigns, public Transition" segregated strategies. He is also affairs, business communications, media deeply involved with Corporate Social relations as well os brand development in Responsibility at the firm os a member of the the WWF network, which is active in over 100 EdenTree CSR Committee and the EdenTree countries. Community Investment Fund. Sarah Keeble Member ofr. Finance and Resources Committee (appointed 21 March 2024) Diane Lewis Member of: Grants and Impact Committee (appointed 23 September 2023) •J Sarah is an employment solicitor and has worked in City law firms for over 30 years, latterly as a partner of Mishcon De Reya LLP. She is now a part-time consultant with Mishcon, having recently retired as a partner. She is also a Trustee of Make-A-Wish UK and chairs the Nominotion and Remunerotion Committee, is a Family Court Magistrate, an Independent Visitor through Action for Children and a Compassionate Companion for her local NHS hospital. Diane is currently a Commercial Manager at NHS England focusing on data and analytics. She brings over 20 years of experience in the NHS from various operational and management roles, now specialising in commercial management including delivering effective category-led improvements and transformations to optimise benefits and efficiencies for NHS Englond. Annual Report and Accounts 2023124 Vijay Lvthra Member ofr. Grants and Impact Committee (appointed 01 September 2023) Louise Sherwin Member of: Property and Development Committee Louise is a Director at Deloitte with over 15 years, experience of advising on major regeneration ond property development projects. Louise is also a Chartered Surveyor. ykn Vijay Luthra is a strategic advisor in global health, technology and innovation. He is founder and CEO of health and life sciences focused challenger strategic advisory firm, Ceva Globol. Ceva works with health and life sciences organisations to develop strategy and actions to face the disruption of the Anthropocene age. Previously Vijay worked at Capita, PWC LLP and PA Consulting in the Government & Health Industries practices. He is also an advisor to Kidney Research UK and a member of the charitys Development Advisory Board. Vijay is both a Chartered Project Professional and Chartered Monagement ConsultanL He is an RSA Fellow and Fellow of the Association for Project Management. Annual Report and Accounts 2023124 The Board of Trustees The Board of Trustees has five scheduled meetings per year. It takes responsibility for putting in place and overseeing the of the Charity. The Board approves the Charitys strategy and agrees strategic plans for fundraising and other activities, approving the allocation of charitableexpenditure. Ad-hoc meetings may be called to deal with any matters of special interest outside of the scheduled meetings. The Board sets out operating plons and budgets, determining the risk appetite and tolerances acceptable in achieving the Charity's purpose and strategy. At each scheduled meeting, the Board reviews the operating and financial performance. The Chief Executive and members of the Senior Leadership Team were invited to attend all meetings of the Trustees. The Board received presentations from several guest speakers highlighting the importance and impact of the Charitys funding. Senior Monagers from across the Charity were invited to present andlor discuss specific relevant topics. The Boord maintains five Committees that provide support in key specific areas, as represented in the diagram and following table below: (ireai Ormond Street Hospit81 hildren's Charitv Anne Bulford- Chair Finance and Resource Committee Grants and Impact Committee Chair-JennrferB@thi81 Property and Development Committee Ch8ir-MikeWisem8n Governance Reputation and Risk Committee Chair- Nicky 8ishDP Investment Committee Ch&ir-Ke¥in Thompson ChBr-loshCrrtehity Annual Report and Accounts 2023/24 - ➢ - ➢ ## ➢ - ➢ - ➢ ## ➢ - ➢ - ➢ ## ➢ - ➢ ## ➢ - ➢ ## ➢ - ➢ 49 Annual Report and Accounts 2023/24 - ➢ - ➢ - ➢ - ➢ - ➢ - ➢ - ➢ - ➢ - ➢ - ➢ - ➢ - ➢ - ➢ 50 Annual Report and Accounts 2023/24 ## Management ## Charity Governance ## Standards and monitoring 51 Annual Report and Accounts 2023124 GOSH Charity continued to maintain its governance review programme during the year. The review programme is made up of regular board evaluation exercises and reviews of governance practice against legislative. regulatory, and best practice requirements. More information is detailed in the Boord Objectives and Performance Review section below. In addition to sector guidance, codes and regulations, the Charity is committed to the principles of the Charity Governance Code, which is used as o tool to benchmark its governance processes and evaluate its effectiveness. The Charity applies the principles and rationales laid out in the Charity Governance Code to support continuous improvement ond underpin our values, helping to inform decision-making. The Charity continues to keep abreast of changes, and potential changes, in legislation and regulation both within the charity sector and wider. During the year, the Charity actively participated in the consultation issued by the Government into proposed new data protection legislation and has kept abreast of other legislative changes that may impact on it, such as the phased implementation of the Charities Act 2022 and the Economic Crime and Corporate Transparency Act 2023. Our understanding, involvement and engagement with legislative and regulatory consultotions provides us with the opportunity to help shape and build good practice, better understanding, and developments across the sector. Annual Report and Accounts 2023/24 ## Board Objectives and Performance Review 53 Annual Report and Accounts 2023/24 ## Section 172 – Carrying out duties, decision making and stakeholder engagement 54 Annual Report and Accounts 2023124 The impact on the community and environment We continue to be mindful of our role in the community and environment and our activities to develop, explore and promote ESG across the Charity is set out on pages 28 to71. Guided by our Charity values, we remain committed to our charitable purpose of improving the lives of seriously ill children whilst ensuring we are conscious and considerate of our impact on the environment and society. as a direct result. We will ensure we learn and develop our understanding and knowledge in this area, adopting and embedding policies that ensure ESG is a key consideration for ovr strategic objectives. As a trusted brand, we aspire to meet the expectation placed on us by the public, by being ambitious in applying the principles of ESG to the stewardship of our donors, supporters, and stakeholders,. delivering sustainable fundraising and charitable impact our investment processes and the operations of our Charity. Maintaining a reputation for high standards of conduct The Trustees ensure full and appropriate compliance with all relevant regulations, laws, and good governance requirements, and have a continued commitment to good governance as set out on pages 39 to 71. The Trustees consider whether they have sufficient information when making decisions, and actively seek external advice from trusted third-party advisers or bodies such as regulators where necessary. The Trustees have engaged BDO as the charity s internal audit partner ond approve an annual plon each yeor of internal audits to ensure compliance and good practice throughout the operations of the Charity. The need to act fairly between members The Charity does not operate under a membership scheme and, therefore, Trustees do not believe this element of Section 172 applies to the Charity. However, as our stakeholders ore primarily our beneficiaries, we aim to act fairly in how we allocate resources to piojects by ensuring consistent review by committees as set out in pages 48 to 53. Annual Report and Accounts 2023/24 ## Risk identification, mitigation, review, and reporting ## Risk Management Framework 56 Annual Report and Accounts 2023/24 Net risk appetite Definition 57 Annual Report and Accounts 2023124 Net Risk Management Framework Table Risk area Net risk Guiding principles appetite Zero Legol and regulatory We will be legally compliant in all aspects of our operations. and we take a zer(>tolerance approach to slave and human traffickin Culture Zero We will have an inclusive and diverse culture where people are proud to work. We have zero tolerance for discrimination or bullying/harassment. Dataloss or unplanned / unauthorised disclosure Zero We will not compromise the confidentiality of personal data, including ensuring any third-porty processors uphold our standards. Fraud Zero We recognise that some of our activities carry a risk of fraud. We will minimise this by reviewing where fraud risk exists and how best we can eliminate, mitigate, or otherwise control this risk. Cyber Low We recognise there is a cyber risk of hacking into our systems, data theft and ransomware. We will minimise this by reviewing where cyber risk exists and how best we can eliminate, mitigate, or otherwise control this risk. Environment, Social and Governance (ESG) Low We will strive to maintain and improve performance regarding ESG and sustainability considerations, where relevant to the charitys activities. Reputation Low Our reputation is fundamental to realising our purpose and strategy and is integrally linked to the hospital's reputation and activities. We always aim to minimise risks to our reputation and to that of the hospital. Low / We will advocate for change in line with our purpose Medium and strategy. We accept this brings some risk, e.g., reputational, and financial, e.g. where others hold a different opinion. Low / We will maintain a sustainable financial/business model Medium that maximises charitable contribution and impact over the medium-long term with acceptable cost/income and charitable expenditure ratios. We recognise that within this model we may take moderate ris￿ in order to realise our purpose and strategy, e.g., Investment in non- cash assets, investment in fundraising, including innovation, and finoncin the Children's Cancer Centre. Advocacy Financial Sustainability Annual Report and Accounts 2023124 Risk area Net risk Guiding principles appetite Medium We endeavour to fully comply with fundraising regulations and guidelines, including the Fundraising Regulator's Code of Practice, and work to uphold sector standards in our fundraising activities, monitoring our fundraising activity to ensure that the public have a positive experience. Moderate risks may be taken in line with fundraising policies. These risks are managed on a case-by-case basis, depending on the degree of risk and size of potential donation, and thus impact on the lives of seriously ill children, balanced against reputation considerations. Fundraising Research and Grants Medium We invest in many areas, including pure/basic research with no clear commercial return or guarantee of clinical success. We welcome this research as necessary in pursuit of impact from ground-breaking new science and clinical approaches, in line with our purpose and strate Commercialisation of assets Medium We will regularly review and consider the various ways we can use oll of our assets to provide the greotest impact whether by income generation or direct charitable supporL Medium We actively seek to work in partnership with others in order to further our purpose. We have a robust due diligence process to ensure partners work to the some h standards as us. Portnerships Digital Medium We invest in digital skills and technologies to optimise our data management and improve user experience. Innovation Medium We invest in new, untried activities within acceptable / High financial and reputational constraints recognising that not all such activities will deliver their intended return. Majorcapital Projects edium/ We recognise that major capital projects come with High risks, e.g., scope changes, financial overruns. However, these projects also provide huge opportunities for us to deliver impact for children, e.g., the Children's Cancer Centre, a hospital 2020-25 strategic goal. We ensure a robust process is applied for approval of these projects with appropriate goteways and milestones and further approval required regarding any changes to the original approved business case. Identification of key risks: strategic priorities and impact The risks below, relevant at the date of approval of this Annual Report, have been identified as the key net risks of the Charity that could have a materially negative impact on the ability of the Charity to deliver its strategy, along with the actions we are taking to mitigate these risks. Annual Report and Accounts 2023/24 - - - - - - - - - - 60 Annual Report and Accounts 2023/24 - - - - - - 61 Annual Report and Accounts 2023/24 - - - - - - - - 62 Annual Report and Accounts 2023/24 - - - - - - • 63 Annual Report and Accounts 2023/24 - - - - - - - - - - - - - 64 Annual Report and Accounts 2023/24 - - - - - - - - - - - 65 Annual Report and Accounts 2023124 Risk= People & Culture- we don't develop and nurture the internal culture needed to Financial sustai nability effectively recruiL support. reward and retain Fundraising the best talent so they can flourish and excel in Reputation their roles and deliver our organisational strategy. Key Risk Areas: Net Risk= MEDIUM review all people policies, create a new appraisal and performance framework to instil a performance culture underpinned by our values. Annual key staff succession review lo mitigate loss of key staff rislL Annual Report and Accounts 2023/24 ## Data protection and information governance ## Cyber Security 67 Annual Report and Accounts 2023/24 ## Fundraising and Fundraising Standards ## Principal fundraising activities - ➢ - ➢ - ➢ - ➢ - ➢ - ➢ ## Fundraising on our behalf 68 Annual Report and Accounts 2023/24 ## Supporter Commitment - - - - - - - - - - ## Complaints 69 Annual Report and Accounts 2023/24 ## Fundraising Regulation 70 Annual Report and Accounts 2023124 We are committed to ensuring that all our fundraising activity is undertaken not only in a way which meets the standards laid out in the Fundraising Code of Practice, but champions excellence in fundraising practice. We welcome the FR'S Market Inquiry report into the use of sub-contractors which recommended thatcharities have robust processes in place to ensure oversight of these companies. We have reviewed our internal processes against the recommendations and expectations outlined in the report and will look to update our practices in line with ony further guidance from the CloF and changes made to the FR Code. In line with our Accept, Refuse, Return Policy, and Charity Commission guidance, we ensure that robust due diligence is undertaken on all significant donations. We continue to face complex decisions about our fundraising activity, and the changing circumstances require us to continue to be flexible, oct fast and adapt quickly. The external environment is challenging and imparts on our ability to fundroise,. however, we work closely with our colleagues in the sector, including our fundraising agencies, and also maintain close contact with the Regulators. This open and transparent relationship with key stakeholders helps ensure our fundraising continues to be honesL open, respectful, and legal.The Charity has set up a Gifts Panel, recruiting a new Independent GRR member, with experience and expertise in these matters to bring robustness to its decision making. Although restrictions for Covid-19 have now been lifted, we remain mindful and cognisant of the impact this has had on individuals. We are also very aware of the potentiol impact on individuals of the cost-of-living crisis. We therefore continue to maintain an awareness and respect for others whilst undertaking our fundraising. In 2017, the Fundraising Regulator set up the Fundraising Preference Service (FPS), as an alternative way for individuals to suppress contact from charities. During the year to 31 March 2024, we received 112 requests from individuols through the FPS who no longer wished to receive our communications, compared with 81 in the previous year. The Charity ensures it processes all requests received in this way promptly and has processes in place to ensure the wishes of the members of the public are respected, whether the individual chooses to use the FPS or update the Charity by other means. Annual Report and Accounts 2023/24 ## Our People 72 Annual Report and Accounts 2023124 Finally, we have implemented detailed diversity reporting via our applicant tracking system. This covers a range of diversity criteria across ethnicity, gender, socio economic background, gender identity and disability. We are monitoring the extent to which our recruitment process attracts diverse talent and are conducting regular assessments so that we can focus on areas that require improvement. Volunteering at GOSH Charity Volunteers provide a wealth of different perspectives, skills, knowledge and lived experience to GOSH Charity, with many people who volunteer with us having a close and personal connection to the Hospital. Working alongside charity staff, volunteers extend our reach and help to achieve our shored mission of supporting seriously ill children ond their families. 2023124 has seen significant progress in improving the quality of the GOSH Charity volunteering offer through the introduction of new processes and governance, as well as the introduction of innovative volunteer opportunities. Volunteers Week in June saw the launch of our new Volunteering Policy, along with a new Volunteer Handbook, aimed ot providing a welcoming experience to new volunteers. In a competitive market it is vitol to provide a straightforward application experience as well as an inspiring and fulfilling volunteer journey to find, keep and grow our volunteer base. This year has seen usstart exploring the potential to use new digital solutions to further improve the volunteer experience from application to exiL This new solution will enable us to centralise all volunteer recruitment and communicate with volunteers by enabling volunteers to log on to view news and access documents. We currently have over 450 volunteers supporting us in a range of ways including fundraising for us, cheering at our mass participation events doing presentations or sharing their experiences on our behalf.This year we introduced two new formal volunteer roles that go beyond fundraising ond support how we spend our money and the day-to- day running of our organisation. Firstly, we introduced a patient benefit panel member role which draws upon a person's own l ived experiences to provide a non-scientific or non-research related perspective when reviewing research proposals that we are considering funding. Secondly, we have introduced a new office reception host role to help create a welcoming and streamlined experience to our visitors who could include future colleagues, volunteers or donors. These roles are proving highly ottractive, with 67 applicationsto take part Here a few volunteers share their motivations for volunteering for GOSH charity. "I feel honoured to be a member on the GOSH Charity's Patient Benefit Panel. I Wcint to use my educational background and personal experiences to ensure that we fund research that h(Js the greatest effect on the lives of seriously ill children. "What l enjoy most is the opportunity to contribute a patient perspective during the evaluation process. From reviewing the clarity of plain English summaries to assessing patient and public involvement in research planning, l am grateful for the opportunity to share insights that prioritise inclusivity and empathy. Christine Manneh - Patient Benefit Panel Member Annual Report and Accounts 2023124 "I volunteer to give back to a charity and hospital that has supported our family in so many ways and given our family so many happy memories during some really difficult times. Due to my son's medical conditions, I hove had to pause my career and become a stay-at-home mum. Volunteering at the reception desk has allowed me to utilise some of my previous work experience and gain some of my confidence back. GOSH Charity has a warm, welcoming and nurturing culture. Their belief in me and encouraging nature has given me not only the opportunity to meet new people but develop new skills too." Alexa Broude- Off ice Reception Host ond Comtnunity Ambassador "I began volunteering at GOSH Charity in 2016. Having lived in London all of my life, I was always aware of all the fantastic and lif&changing things that happen at GOSH, so it has always been on my radar as a charity to be involved with when my life permitted me to dedicate the time to do sol "I really enjoy volunteering with the GOSH Charity team. everyone is so friendly and helpful. l am also hugely motivated by my interactions with our supporters, who I speak to on a regular basis. There is nothing like hearing their personal stories to centre your focus. I see my role at GOSH Charity os a purposeful one and hopefully my small contribution has a positive impact." Lucy Kay- Community Fundroising Administration Volunteer Equality. Diversity. Inclusion This year we reached the end of GOSH Charity s inaugural EDI strotegy. Over the past year we have collaborated with colleagues to further embed our work around EDI and create a culture where we all can thrive. As part of our commitment to equality and diversity we introduced a new recruitment policy which provides clear guidance for hiring managers on fair and equitable processes. We are continually reviewing our recruitment processes to ensure that we minimise bias, this has involved the introduction of CV anonymisation and candidates receiving interview questions 48 hours in advance. We have also achieved our Disability Confident Level 2 through our membership with Business Disability Forum. This achievement is highlighted on ourjob adverts, with the view that this will increase disability representation in our application pools and future hires. We have refreshed our EDI training offer- Speak Up, Stand Up- to equip all colleagues with the skills and confidence to act in allyship, as well as offering bite-size training sessions on different oreas such as neuiodiversity ond disability inclusion. Over the past 3 years, we have worked to improve diversity within the organisation, increasing representation ocross all critical groups year on year. Annual Report and Accounts 2023/24 - - - 75 Annual Report and Accounts 2023/24 - - - - - - 76 Annual Report and Accounts 2023/24 **----- Start of picture text -----**
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Pride Wellbeing Reward and Recognition
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77 Annual Report and Accounts 2023124 Voice of the Staff Reps We believe listening to our people allows us to understand them better, address their concerns more effectively and create a better workplace. Through our Staff Reps, colleagues have a voice and access to senior management to raise concerns or ideas on how we can make GOSH Charity a better workplace. Equally they can provide o useful platform for senior managers to seek staff views on policies or changes to working practices. Our Staff Reps help improve the level of trust in the charity, improve decision making, implement positive change and improve colleague motivation and engagement. Our Stoff Reps also play an important role in helping us identify trends across the Charity and understand how different workstreams have an impact on different teams or groups of people. In your opinion. what is the value of being a Staff Rep at GOSH Charity. "Being a Staff Rep is a really nice way to engage with people in the charity os well as advoc(Iting about issues that are important to staff Staff Reps are the first point of call for lots of areas from making sure staff needs are catered for, to questions around organisational structure or pay. Staff are able to send us their questions, concerns, feedbcick or ideas anonymously which we are then able to discuss, and either escalclte to the Senior Leadership Team or the relevant departmen¢ or feedback the results of our discussions. Person(Jlly, it is a really nice way to be involved in helping make GOSH Charity a really welcoming and productive place to work that cares about its employees." What do you enjoy the most in working at GOSH Charity. "I've worked at GOSH Charity for 77years this year, and though I've seen lots of change, one thing that has alw(Jys remained are the wonderful colleagues who are helpfLJI and willing to get involved. It is always so nice to be able to rely on everyone to attend events or call supporters to say a big thank you. There is nothing better than being surrounded by kind, supportive and passionate people. Great Ormond Street Hospital is such on incredible and inspiring place, and you feel that in everything we do at the Charity tool" Natasha Day. Virtual Events Executive . Mass Participation In your opinion. what is the value of being a Staff Rep at GOSH Charity. "Staff Reps enable a wide variety of insight to be heard from across the charity. It cicts as a forum for change, addressing what Is most important to the individuals who make the cogs of GOSH Charity turn. To see the positive impact on the culture of our orgcjnisation and our collecigues has been incredibly rewarding and continues to help push the charity to be a leader in the sectorl" What do you enjoy the most in working at GOSH Charity. "The peoplel From my colleagues to all the children. families, and staff at GOSH. To work so closely with people who are inspired by and dedicated to making an incredible impact on the lives of seriously ill children and their families drives me every day. Rhianne Rowson. Philanthropy Manager- Trusts & Reporting . Philanthropy Annual Report and Accounts 2023/24 ## Financial Review ## Income The Charity had an outstanding financial performance in the financial year ended 31 March 2024. Our total income of £131.2m (2022/23: £107.7m) represents an increase of £23.5m (22%) against the previous financial year’s position. This is our highest ever total income and we are incredibly grateful to all our supporters for the impact this will have on transforming the lives of seriously ill children. Of the £131.2m income, £117.6m (90%) came from fundraising income streams and the top five streams are included in the chart below. Increased activity and investment in fundraising has seen increased income in four of these income streams (with more detail included on page 22, Income). Of particular note is direct gifts, which has seen an increase of £10.5m, in part as a result of the Children’s Cancer Centre initiative. Partnerships, campaigns and events have also had a notable increase of £3.9m. The GOSH Charity lottery contributed £4.0m (2022/23: £1.8m) and is included within trading activities. These five fundraising income streams ensure the Charity has a diversity of fundraising activities across a wide supporter base and helps provide resilience against challenges in one or more of these areas. Investment income represents income from fixed term cash deposits and bank interest. Higher interest rates and more active placing of cash deposits gave rise to a significant increase of £6.0m in this area. Of the £2.8m income from charitable activities, the majority was rental income arising from property owned by the Charity in support of the hospital (e.g. staff accommodation, family accommodation, the Zayed Centre for Research). **----- Start of picture text -----**
£131.2 M
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Fundraising towards the Children’s Cancer Centre raised £36.3m of income during the year, within the year-end total of donations and pledges of £159.8m. More detail is included within the Income section (page 22) and in the Children’s Cancer Centre section on page 25. Total commitments made by the Charity towards the Children’s Cancer Centre were £34.5m by year end, of which £16.8m was during the 79 Annual Report and Accounts 2023/24 year and is included in redevelopment and environment expenditure, as set out below. Following year end, the Board committed funding of £295.5m, bringing the total to £330m (see Note 25). The Charity would like to thank all our supporters. Whether through making a regular monthly donation, taking part in or donating to a fundraising event, or leaving a gift in your Will, every supporter makes our work possible and helps transform the lives of seriously ill children. We are especially grateful for all your support during these financially challenging times. ## How your money was spent Of the £131.2m of income generated, our total expenditure in the year was £93.2m (2022/23: £69.1m), £24.1m higher than prior year. The difference between the two, £38.0m (2022/23: £38.6m) contributes to an increase in the net assets of the Charity. Expenditure on running the Charity and raising funds was £46.2m (2022/23: £40.5m), an increase of £5.7m, mainly driven by increases of £2.3m in expenditure on raising direct gifts from individuals and trusts, and £1.3m in other fundraising costs, plus an uplift to the pension provision (further detail below). These increases were expected as we undertook year 3 of our transformational 10-year fundraising strategy. We recognise that investing, as we are, in our long-term net income growth strategy can increase the cost to income ratio and decrease the charitable expenditure ratio (see below) in the short term. But this investment is expected to have a material beneficial impact in future as the investment makes a positive return and increases the funds available to the Charity to spend on charitable activities and maximising our impact on the lives of seriously ill children. Ongoing focus is given to ensuring that the Charity maximises the cost effectiveness of its activities, obtains value for money and provides high standards of supporter care and compliance to fundraising standards. 80 Annual Report and Accounts 2023/24 **----- Start of picture text -----**
£47.0 M
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Expenditure on charitable activities was £47.0m (2022/23: £28.5m), an increase of £18.5m. Redevelopment and environment grant awards were £16.8m higher than in 2022/23, mainly due to commitments made in the year for the Children’s Cancer Centre project. Another notable area was an increased £13.9m in commitments made towards research, as part of the Charity’s research strategy. We spent £6.7m less this year in the area of patients, family and staff support, primarily due to the £5.6m award for the GOSH Learning Academy in 2022/23, which was a multi-year award. The negative spend of £1.6m in technology and innovation arises from the release of unspent previous commitments more than offsetting expenditure in this area. Most of the provisions released relate to Electronic Patient Records (EPR) optimisation. There were delays to work in this area as a result of the pandemic and so it was agreed with the Hospital that this project would be closed but that they would reapply for funding once the scope and requirements for EPR optimisation are further defined. Funding is provided by the Charity for research, welfare and clinical development, medical equipment and systems, and patient, family and staff accommodation and other support, as well as for redevelopment. Commitments made to the hospital’s redevelopment and major infrastructure, systems and equipment projects usually extend over a number of years, which can give rise to significant variations in expenditure and/or amounts held in the Charity’s designated funds from one year to the next. 81 Annual Report and Accounts 2023/24 Expenditure on raising funds and charitable activities includes an allocation of £15.3m (2022/23: £12.1m) for support costs, as required by Charity accounting rules and as set out in Note 4 to the financial statements. ## Cost to income and charitable expenditure ratios We are very aware that our work relies on the generosity and support of our donors. It is therefore very important that the Charity optimises the amount of donated funds available to fund charitable activity over time. One way of measuring this, is to consider the cost to income and charitable expenditure ratios. We monitor and report both ratios over a rolling five-year period. We do this because the ratios inevitably vary from year-to-year and to account for material volatility in our annual income and charitable expenditure. This can arise due to the timings of large-scale hospital redevelopment projects against which we raise specific funds, particularly material donations from major donors and corporate partners. A five-year average also spreads the impact of short-term investment in fundraising and therefore gives us a much truer picture of the long-term relationship between income raised and expenditure on charitable activities and raising funds than a one-year average would. The cost to income ratio is defined as, on a rolling five-year basis, the amount of expenditure on raising funds (including the allocation for support costs, as set out in the previous section, but excluding the pension provision increase, see Note 21) as a proportion of total income, excluding gifts-in-kind from both amounts. The charitable expenditure ratio is then the balance to make 100%, recognising that some of this expenditure may fall in future years. At the end of 2023/24 our rolling five-year charitable expenditure ratio was 67.6% (2022/23: 68.6%) and our cost to income ratio was 32.4% (2022/23: 31.4%). 82 Annual Report and Accounts 2023/24 ## Tangible fixed assets Tangible fixed assets at 31 March 2024 of £237.6m (2022/23: £248.1m) mainly consist of properties, the freehold of which is owned by the Charity and used for clinical, residential and administrative purposes by the hospital, with the Charity carrying the associated risks and rewards for each asset. These assets are held by the Charity to further its charitable purpose and are used by the hospital or the ICH. The largest part of the Charity’s property portfolio is provided through long-term leases to the hospital at peppercorn rents to support clinical and research activities. Certain of the residential properties are let to key hospital staff to assist the hospital with recruitment and retention. Other residential property is provided, free of charge, to parents of children undergoing treatment at GOSH. The Zayed Centre for Research is leased to the hospital and ICH at commercial rates. A full property valuation as at 31 March 2024 was carried out by Montagu Evans LLP, a property consultancy. Prior year valuation was also conducted by Montagu Evans LLP. The valuation resulted in a net decrease in property value of £10.5m, which together with depreciation write-backs of £2.1m gives an overall unrealised decrease for the year of £8.4m. There are several contributing factors to the net decrease in property value which are expanded on in Note 9 to the accounts, page 112. It should be noted that this reduction is also reflected in the Charity’s Tangible Fixed Assets and Property Revaluation Reserves which have reduced in total by £10.5m from £248.1m to £237.6m. ## Investment policy and performance The investment policy of the Charity is cautious, with the Trustees’ priority being to preserve capital in order to meet existing and future commitments on capital programmes and other grants made. The Investment Committee continues to keep under review the Charity’s investment policy and strategy and, in compliance with the policy, explore ways of improving investment returns that minimise the risk of capital loss. The Investment Committee will continue to review the allocation of the investment portfolio to ensure it remains appropriate for the commitments and future funding expectations of the Charity. The Charity uses the services of a number of investment managers. The Charity’s investment managers follow strict investment guidelines in line with the Charity’s moral and ethical policy. This specifies that the Charity does not invest in tobacco or arms manufacturing, or any holding in which either tobacco or arms manufacture are the main or a material element, due to the negative impact they have on child health. In addition, Environmental, Social and Governance (ESG) factors must be central considerations in the investment process of each manager. The total investment portfolio including cash at 31 March 2024 was £324.0m (31 March 2023: £274.6m) divided between the long-term investment portfolio, short-term cash deposits and cash held in our bank accounts. The value of the long-term portfolio at 31 March 2024 was £138.8m (31 March 2023: £91.9m). This portfolio holds the Charity’s invested risk assets and made an unrealised gain of £12.9m during the year (31 March 2023: unrealised loss of £6.1m). This is in addition to £34.0m moved out of cash and shortterm deposits and placed into bonds (Aberdeen Standard) and equities (Legal & General Investment Management) following a rebalancing exercise. The Investment Policy provides a range of parameters within which the Charity’s funds should be invested, and a rebalancing exercise is undertaken if any fund categories go outside of the range. 83 Annual Report and Accounts 2023/24 There are many factors which can influence movements within the portfolio. It is noted that the unrealised gain of £12.9m represents a point in time at year end against a continuing backdrop of economic pressures which have given rise to fluctuations during the year. Equities have recovered particularly well compared to prior year; bonds have also shown good performance though valuations here increased at a slower pace. The Investment Committee meet several times a year where fluctuations within the portfolio are carefully considered and fund managers asked to present on the performance of our funds held with them. The short-term deposits portfolio of £139.6m at 31 March 2024 (31 March 2023: £135.7m) is held across a number of UK banks, deposits with Royal London Cash Management and a short-term fixed income portfolio managed by HSBC. The increases in Bank of England base rate in the early part of the year, and being held at the high point since, have created opportunities with fixed term deposit rates. This, coupled with active work in this area to place funds on deposit and seek the most preferential rates, has seen higher interest income in this regard. The Charity recognised £8.9m of fixed term deposits and bank interest. Remaining funds are held as cash in our bank accounts as working capital to facilitate standard working activities. The balance at 31 March 2024 was £45.6m (31 March 2023: £47.0m). A preferential interest rate on the Charity’s operating bank account was negotiated during the year, and income from this is included within fixed term deposit and bank interest. As part of the ongoing governance of our investment portfolio, the Investment Committee carry out regular reviews of investment performance and aim to meet with investment managers once a year. ## Liquidity, funds and reserves The total funds and reserves of the Charity increased in the year by £42.5m from £487.8m to £530.3m at 31 March 2024. They match the total net assets of the Charity as shown on the balance sheet with detailed breakdowns shown in Notes 18 and 19 to the financial statements. The primary reason for the increase is net income generated in the year. The Charity works within a Liquidity, Funds and Reserves Policy. This policy sets out the Charity’s approach to these areas and the key points are set out below. ## Liquidity and going concern The Trustees are keen to ensure that funds donated to the Charity are not only used on the highest priorities delivering the most impact but also that these funds are used promptly so that the benefits can be realised as soon as possible. The Trustees need to balance this objective with the need to maintain financial prudence and ensure the long-term financial sustainability of the Charity and that the Charity remains a ‘going concern’, i.e. is able to meet its liabilities as they fall due. This is particularly important when the Charity commits to significant multi-year redevelopment projects for the hospital, e.g. the Children’s Cancer Centre, for which significant fundraising will be required post commitment. The Charity’s policy requires it to hold sufficient liquidity to cover at least two years of projected total Charity and charitable expenditure, as set out in the Charity’s finance model. The Charity’s liquidity is the total of its cash, short-term deposits and long-term investments (all of which can readily be liquidated if required) as shown on the balance sheet. Long-term financial modelling has been undertaken which considers various scenarios and stress tests. This modelling gives reasonable assurance that the Charity has, and will continue to have, sufficient liquidity and is, and will continue to be, a going concern for at least 12 months from the balance sheet signing date. 84 Annual Report and Accounts 2023/24 ## General funds Given the Charity’s approach to designated funds and reserves set out above, general funds are held by the Charity to ensure that there are sufficient funds to cover our short-term working capital requirements as well as provide resilience against financial shocks. Based on its financial modelling, the Charity has determined that general funds of £20.0m should be held at all times and this is the level held at year end as shown on the balance sheet. ## Designated funds and reserves Trustees may, at their discretion, and ensuring there is a suitable rationale, set up designated funds and reserves for specific purposes. Designated funds and reserves are part of unrestricted funds along with general funds. Detail regarding all designated funds and reserves is shown in Note 19 to the financial statements. ## _**Designated funds**_ Designated funds are those funds set aside for future charitable commitments and expenditure in line with the Charity’s purpose. The Charity has three designated funds: - Research fund - Property Redevelopment fund - Other Charitable Commitments fund The three designated funds operate as follows: **Research fund** – the Charity’s policy requires it to hold a balance based on c. 50% of projected research expenditure over the next 5 years. The reason that c. 50% of projected spend over the next 5 years is used for the Research and Other Charitable Commitments funds is that it is sensible, and desirable, for some annual income to be used for these purposes. We also expect that some funding for these purposes will be raised as restricted income. **Property Redevelopment fund** – the Charity’s policy requires it to hold a balance set as the balance of unrestricted funds once the criteria of the Research fund, the Other Charitable Commitments fund (see below) and General funds have been met. **Other Charitable Commitments fund** – the Charity’s policy requires it to hold a balance based on c. 50% of projected charitable expenditure (other than research and property redevelopment expenditure) over the next 5 years. ## _**Designated reserves**_ Designated reserves are those funds set aside to match Charity fixed assets as per the balance sheet as well as any unrealised gains or losses on the Charity’s investments. The Charity has four designated reserves: - Tangible Fixed Assets reserve - Property Revaluation reserve - Intangible Fixed Assets reserve - Investments Revaluation reserve The total of the Tangible Fixed Assets reserve and the Property Revaluation reserve match the total Tangible Fixed Assets on the balance sheet. 85 Annual Report and Accounts 2023/24 ## Restricted funds Donors may place restrictions on their donations, e.g. to research, medical equipment or a property redevelopment project. Restricted funds represent the balance of restricted income and related restricted expenditure according to the income and expenditure accounting policies as set out in Note 1 to the financial statements. The Charity holds a number of different funds to support specific activities chosen by donors which fall within the objects of the Charity. At 31 March 2024, restricted funds were held of £58.8m (2022/23: £49.5m). ## Endowments Endowment funds are restricted and held permanently in accordance with any restrictions placed on the individual funds, e.g. to generate funds to support specific charitable purposes or to increase general funds to support all our charitable work. The Charity holds five endowments totalling £0.7m (2022/23: five endowments, £0.7m). ## Split of fund balances The Charity’s fund balance of £530.3m is split as follows: **----- Start of picture text -----**
£530.3 M
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## Provision In 2021/22, a historic potential exposure came to light concerning potential employer NHS pension contributions between 2006/07 – 2014/15. This matter has been reported to the Charity Commission, The Pensions Regulator and NHS Pensions. Work is ongoing to resolve this matter and an uplift of £2.3m has been added to the provision, reflecting a more developed understanding of the potential exposure, should the exposure be realised, and an uplift to reflect inflation. The provision of £3.9m remains the best estimate of the potential exposure. Please see Notes 1 and 21 to the accounts for more details. ## GOSIPL As a trading subsidiary of GOSH Charity, Great Ormond Street International Promotions Limited (GOSIPL) Gift Aided 2023/24 profits of £1.8m to GOSH Charity (2022/23: £1.1m). 86 Annual Report and Accounts 2023/24 ## Legal and administrative details 87 Annual Report and Accounts 2023124 Executive Directors Louise Parkes (Chief Executive) Bill Cunningham (Director of Finance & Resources) Emma Guise (Director of Marketing & Communications) Aoife Regan (Director of Impact & Charitable Programmes) (appointed 6 February 2024) Kiki Syrad (Director of Impact & Charitable Programmes) (until 11 October2023) Liz Tait (Director of Fundraising) Independent Auditors Pricewaterhousecoopers LLP Chartered Accountants and Statutory Auditors 1 Embankment Place, London WC2N 6RH Bankers Royol Bonk of Scotlond plc 9th Floor, 280 Bishopsgate, London EC2M 4RB Investment Managers HSBC Asset Management (Europe) Ltd, London SW1A 1EJ Royal London Cosh Management Ltd, 55 Gracechurch Street, London EC3V OUF Legal and General Investment Management One Colemon StreeL London EC2R SAA Aberdeen Standard 35a Avenue JF Kennedy L-1855 Luxembourg Annual Report and Accounts 2023/24 ## Statement of Trustees’ responsibilities The trustees (who are also Directors of Great Ormond Street Hospital Children’s Charity for the purposes of company law) are responsible for preparing the Annual Report and Accounts and the financial statements in accordance with applicable law and regulation. Company law requires the Trustees to prepare financial statements for each financial year. Under that law the trustees have prepared the financial statements in accordance with United Kingdom Accounting Standards, comprising FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”, and applicable law (United Kingdom Generally Accepted Accounting Practice). 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 charitable company and the group and of the incoming resources, including the income and expenditure, of the charitable group for that period. In preparing the financial statements, the trustees are required to: - select suitable accounting policies and then apply them consistently; - observe the methods and principles in the Statement of Recommended Practice: Accounting and reporting by Charities (2019); - make judgements and estimates that are reasonable and prudent; - state whether applicable UK Accounting Standards, comprising FRS 102 have been followed, subject to any material departures disclosed and explained in the financial statements; and - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business. The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company’s transactions and disclose with reasonable accuracy at any time the financial position of the charitable company and the group 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 charitable company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The trustees are responsible for the maintenance and integrity of the company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. ## **Trustees’ confirmations** In the case of each Trustee in office at the date the Trustees’ report is approved: - (a) so far as the trustee is aware, there is no relevant audit information of which the company’s auditors are unaware; and - (b) they have taken all the steps that they ought to have taken as a trustee in order to make themselves aware of any relevant audit information and to establish that the company’s auditors are aware of that information. Page 89 Annual Report and Accounts 2023/24 Independent auditors’ report to the members of Great Ormond Street Hospital Children’s Charity ## **Report on the audit of the financial statements** ## Opinion In our opinion, Great Ormond Street Hospital Children’s Charity’s group financial statements and parent charitable company financial statements (the “financial statements”): - give a true and fair view of the state of the group’s and of the parent charitable company’s affairs as at 31 March 2024 and of the group’s and parent charitable company’s incoming resources and application of resources, including its income and expenditure, and of the group’s cash flows, for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards, including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”, and applicable law); and - have been prepared in accordance with the requirements of the Companies Act 2006. We have audited the financial statements, included within the Annual Report and Accounts (the “Annual Report”), which comprise: the consolidated and charity balance sheets as at 31 March 2024; the consolidated statement of financial activities (incorporating an income and expenditure account) and the Consolidated Statement of Cash Flows for the year then ended; and the notes to the financial statements, which include a description of significant accounting policies. ## Basis for opinion We conducted our audit in accordance with International Standards on Auditing (UK) (“ISAs (UK)”) and applicable law. Our responsibilities under ISAs (UK) are further described in the Auditors’ responsibilities for the audit of the financial statements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. ## _Independence_ We remained independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, which includes the FRC’s Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. ## Conclusions relating to going concern Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group’s and the parent charitable company’s ability to continue as a going concern for a period of at least twelve months from the date on which the financial statements are authorised for issue. 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. However, because not all future events or conditions can be predicted, this conclusion is not a guarantee as to the group’s and the parent charitable company’s ability to continue as a going concern. Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report. ## Reporting on other information The other information comprises all of the information in the Annual Report other than the financial statements and our auditors’ report thereon. The trustees are responsible for the other information. Our opinion on the financial statements does not cover the other information and, accordingly, we do not express an audit opinion or, except to the extent otherwise explicitly stated in this report, any form of assurance 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 an apparent material inconsistency or material 90 Annual Report and Accounts 2023/24 misstatement, we are required to perform procedures to conclude whether there is a material misstatement of 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 based on these responsibilities. With respect to the Strategic Report and Trustees' Report, we also considered whether the disclosures required by the UK Companies Act 2006 and Charities Act 2011 have been included. Based on our work undertaken in the course of the audit, the Companies Act 2006 requires us also to report certain opinions and matters as described below. ## _Strategic Report and Trustees’ Report_ In our opinion, based on the work undertaken in the course of the audit the information given in the Strategic Report and the Trustees’ Report for the period ended 31 March 2024 is consistent with the financial statements and has been prepared in accordance with applicable legal requirements. In light of the knowledge and understanding of the group and parent charitable company and their environment obtained in the course of the audit, we did not identify any material misstatements in the Strategic Report and the Trustees’ Report. ## Responsibilities for the financial statements and the audit ## _Responsibilities of the trustees for the financial statements_ As explained more fully in the Statement of Trustees’ responsibilities, 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 in accordance with the applicable framework and for being satisfied that they give a true and fair view. The trustees are also responsible for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the group’s and parent 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 group or the parent 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. Based on our understanding of the group and its environment, we identified that the principal risks of non-compliance with laws and regulations related to the Charities Act 2011, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the financial statements such as the Companies Act 2006. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to the posting of inappropriate journal entries and the manipulation of key accounting estimates. Audit procedures performed by the engagement team included: - enquiring of management and the board of trustees, including consideration of known or suspected instances of fraud and non-compliance with laws and regulations; - reading minutes of meetings of the Board of Trustees and Board subcommittees, including the Finance and Resources Committee; - reviewing correspondence with regulators, including the Charity Commission for England and Wales; - understanding and evaluating the group and parent charitable company’s control environment; - identifying and testing journal entries, including journal entries posted with unusual account combinations to income or expenditure accounts; 91 Annual Report and Accounts 2023/24 - assessing the reasonableness of key accounting judgements and estimates, including accrued legacy income and the valuation of land and buildings; - assessing financial statement disclosures, and testing to supporting documentation, for compliance with applicable laws and regulations. There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of noncompliance with laws and regulations that are not closely related to events and transactions reflected in financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations or through collusion. A further description of our responsibilities for the audit of the financial statements is located on the FRC’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditors’ report. ## _Use of this report_ This report, including the opinions, has been prepared for and only for the group’s and parent charitable company’s members as a body in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and for no other purpose. We do not, in giving these opinions, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing. ## **Other required reporting** ## Companies Act 2006 exception reporting Under the Companies Act 2006 we are required to report to you if, in our opinion: - we have not obtained all the information and explanations we require for our audit; or - adequate accounting records have not been kept by the parent charitable company, or returns adequate for our audit have not been received from branches not visited by us; or - certain disclosures of trustees’ remuneration specified by law are not made; or - the parent charitable company financial statements are not in agreement with the accounting records and returns. We have no exceptions to report arising from this responsibility. Daniel Chan (Senior Statutory Auditor) for and on behalf of PricewaterhouseCoopers LLP Chartered Accountants and Statutory Auditors London 13 December 2024 92 Annual Report and Accounts 2023/24 ## Financial Statements ## Great Ormond Street Hospital Children’s Charity Consolidated statement of financial activities for the year ended 31 March 2024 ## (incorporating an income and expenditure account) ||||**Restricted and**|||Restricted and|| |---|---|---|---|---|---|---|---| |||**Unrestricted**|**endowment**|**Year ended 31**|Unrestricted|endowment|Year ended 31| ||Note(s)|**funds**|**funds**|**March 2024**|funds|funds|March 2023| |**Income and endowments from:**||**£000**|**£000**|**£000**|**£000**|**£000**|**£000**| |Donations and legacies|2.1|**67,852**|**41,070**|**108,922**|71,245|25,846|97,091| |Trading activities|2.2|**6,980**|**3,016**|**9,996**|2,786|2,274|5,060| |Investments|2.3|**9,396**|**144**|**9,540**|3,528|7|3,535| |Charitable activities|2.4|**1,770**|**982**|**2,752**|1,735|270|2,005| |**Total**||**85,998**|**45,212**|**131,210**|79,294|28,397|107,691| |**_Expenditure on:_**|||||||| |Raising funds|3.1|**46,218**|**-**|**46,218**|40,534|-|40,534| |Charitable activities|3.2|**25,159**|**21,834**|**46,993**|7,137|21,380|28,517| |**Total**||**71,377**|**21,834**|**93,211**|47,671|21,380|69,051| |**Net income before gains/(losses) on**|||||||| |**investments**||**14,621**|**23,378**|**37,999**|31,623|7,017|38,640| |Net gain/(loss) on investments||**12,883**|**-**|**12,883**|(6,121)|-|(6,121)| |**Net income/(expenditure)**||**27,504**|**23,378**|**50,882**|25,502|7,017|32,519| |Transfers between funds|19.1/19.2/19.3|**14,112**|**(14,112)**|**-**|(27,544)|27,544|**-**| |**Other recognised gains:**|||||||| |Net (loss)/gain on revaluation
of fixed assets|9|**(8,403)**|**-**|**(8,403)**|(66,050)|-|(66,050)| |**Net movement in funds**||**33,213**|**9,266**|**42,479**|(68,092)|34,561|(33,531)| |**Reconciliation of funds:**|||||||| |Total funds at the beginning of|year|**437,599**|**50,185**|**487,784**|505,691|15,624|521,315| |**Total funds carried forward 31**|**March**|**470,812**|**59,451**|**530,263**|437,599|50,185|487,784| Notes 1 to 25 form part of these financial statements. All amounts relate to continuing operations. All gains and losses recognised in the year are included in the consolidated statement of financial activities. 93 Annual Report and Accounts 2023/24 ## Great Ormond Street Hospital Children’s Charity ## Consolidated and Charity Balance Sheets ## As at 31 March 2024 |||**Consolidated**|**Consolidated**|**Charity**
SC|**Charity**
SC| |---|---|---|---|---|---| |||**Total at 31**|Total at 31|**Total at 31 March**|Total at 31| ||Note(s)|**March 2024**|March 2023|**2024**|March 2023| |||**£000**|£000|**£000**|£000| |**Fixed assets**
~~SSCS~~|||||| |Intangible assets|8|**2,214**|3,026|**2,214**|3,026| |Tangible assets|9|**237,591**|248,061|**237,591**|248,061| |Long-term investments
~~ce~~|10
~~ce~~|**138,778**
~~ce~~|91,895
~~ce~~|**138,778**
~~ce~~|91,895
~~ce~~| |**Total fixed assets**||**378,583**|342,982|**378,583**|342,982| |**Current assets**
~~CSCS~~|||||| |Stock|11|**61**|35|-|-| |Short-term deposits|12|**139,576**|135,706|**139,576**|135,706| |Debtors|13|**37,804**|33,639|**39,022**|34,493| |Cash at bank and in hand||**45,621**|47,048|**44,338**|46,104| |**Total current assets**||**223,062**|216,428|**222,936**|216,303| |Creditors: amounts fallingdue within oneyear|14|**41,463**|49,933|**41,362**|49,833| |**Net current assets**||**181,599**|166,495|**181,574**|166,470| |**Total assets less current liabilities**||**560,182**|509,477|**560,157**|509,452| |Creditors: amounts falling due after more than one year|15|**26,019**|20,095|**26,019**|20,095| |Provisions for liabilities|21|**3,900**|1,598|**3,900**|1,598| |**Total net assets**||**530,263**|487,784|**530,238**|487,759| |**Funds and reserves**
~~ee~~|||||| |General funds|19.3|**20,000**|20,000|**19,975**|19,975| |Designated funds|19.3|**202,678**|171,066|**202,678**|171,066| |Designated reserves|19.3|**248,134**|246,533|**248,134**|246,533| |Total unrestricted funds and reserves||**470,812**|437,599|**470,787**|437,574| |Endowment funds||**664**|664|**664**|664| |Restricted income funds||**58,787**|49,521|**58,787**|49,521| |Total restricted and endowment funds|19.1/19.2|**59,451**|50,185|**59,451**|50,185| |**Total funds and reserves**||**530,263**|487,784|**530,238**|487,759| Net income (£000) for the charity for the year before consolidation was £49,048 (2022/23: £31,373). The notes on pages 96 to 126 are an integral part of these financial statements. The financial statements on pages 93 to 126 were authorised for issue by the Board of Trustees on 13 December 2024 and were signed on its behalf on 13 December 2024. Anne Bulford CBE, Chair Great Ormond Street Hospital Children’s Charity Company number: 09338724 Charity number: 1160024 94 Annual Report and Accounts 2023/24 ## Great Ormond Street Hospital Children’s Charity ## Consolidated statement of cash flows ## For the year ended 31 March 2024 |||**Year ended**|Year ended| |---|---|---|---| |||**31 March**|31 March| |||**2024**|2023| ||**Note**|**£000**|£000| |**Cash flows from operating activities:**|||| |**Net cashgenerated from operating activities**|20.1|**27,037**|**23,693**| |**Cash flows from investing activities:**|||| |Interest received from investments|2.3|**7,602**|2,946| |Dividend income|2.3|**1,938**|589| |Purchase of property, plant and equipment|9|**(134)**|(20)| |Purchase of investments
**Net cash used in investing activities**|10|**(34,000)**
**(24,594)**|-
3,515| |**Change in cash and cash equivalents in the reporting year**||**2,443**|27,208| |**Cash and cash equivalents at the beginning of the reporting year**||**182,754**|155,546| |**Cash and cash equivalents at the end of the reporting year**|20.2|**185,197**|182,754| |||**Total at 31**|Total at 31| |||**March 2024**|March 2023| |||**£000**|£000| |**Analysis of cash and cash equivalents:**|||| |Cash at bank and in hand||**45,621**|47,048| |Short-term deposits
**Cash and cash equivalents at the end of the reporting year**|12|**139,576**
**185,197**|135,706
182,754| Notes 1 to 25 form part of these financial statements. 95 Annual Report and Accounts 2023/24 ## Great Ormond Street Hospital Children’s Charity ## Notes to the financial statements ## **1. Accounting policies** ## **1.1 Accounting policies** The following accounting policies have been applied consistently for all years in dealing with items that are considered material in relation to the financial statements of the charity and its subsidiaries. ## **1.1.1 Company information** Great Ormond Street Hospital Children's Charity (charity number 1160024) and its subsidiary operate with the objective of raising money to further such charitable purposes as: (a) the hospital services (including research) of Great Ormond Street Hospital, (b) any other part of the health service associated with Great Ormond Street Hospital as the Trustees think fit, provided that such support is not of a kind that would ordinarily be given by the statutory authorities, and (c) research into children's disease. The charity is a company limited by guarantee and is incorporated in England and Wales. The address of its registered office is 40 Bernard Street, London, WC1N 1LE. been presented for the charity alone, as permitted by section 408 of the Companies Act. Total income (£000) for the charity before consolidation was £128,736 (2022/23: £106,094) with total expenditure of £92,572 (2022/23: £68,600). Net income (£000), excluding investment gains, for the year was £36,164 (2022/23: £37,494). The consolidated and financial statements are presented to the nearest thousand (£000) except where otherwise stated. The preparation of financial statements requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the group and charity accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements, are disclosed in Note 1.1.5. FRS 102 allows a qualifying entity certain disclosure exemptions, subject to certain conditions, which have been complied with, including notification of, and no objection to, the use of exemptions by the charity’s Trustees. ## **1.1.2 Basis of preparation** These consolidated and separate financial statements have been prepared on a going concern basis as a public benefit charity, under the historical cost convention, as modified for the revaluation of certain investments and properties measured at fair value, and in accordance with the Statement of Recommended Practice (SORP) Accounting and Reporting by Charities, Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland", the Charities Act 2016 and the Companies Act 2006. No separate Statement of Financial Activities (SOFA) has The parent charity has taken advantage of the following exemptions: i) from preparing a statement of cash flows, on the basis that it is a qualifying entity and the consolidated statement of cash flows, included in these financial statements, includes the charity’s cash flows; ii) from certain financial instrument disclosures required under FRS 102 sections 11 and 12, as the information is provided in the consolidated financial statement disclosures. 96 Annual Report and Accounts 2023/24 ## **1.1.3 Going concern** The charity meets its day-to-day working capital requirements through cash held in the bank and aligned with current internal treasury practices. The charity's forecasts and projections, taking account of possible changes in performance including a range of scenarios, show that the charity should be able to operate within the level of its current facilities. The Trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future and for at least 12 months from the date the financial statements were authorised for issue. As described above and in the Annual Report, following the Trustees' assessment of going concern (see page 84), the Trustees continue to adopt the going concern basis in preparing the financial statements. ## **1.1.4 Basis of consolidation** The consolidated financial statements of the charity incorporate the financial statements of the Company Limited by Guarantee and its wholly-owned subsidiary undertaking, Great Ormond Street International Promotions Limited (GOSIPL). Intercompany transactions and balances between charity companies are eliminated. Consistent accounting policies have been adopted across the group. The net assets of subsidiaries at the date of association are assessed on a fair value basis for the purpose of consolidation into the results for the group. ## **1.1.5 Critical accounting judgements and** ## **estimation uncertainty** The charity makes estimates and assumptions concerning the future. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below. ## Critical Accounting Judgements (i) Recognition of legacy income Legacy income from residuary estates requires judgement due to its variability and is recognised when three criteria are met: - Entitlement is established when we receive formal notification of an interest in an estate and a copy of the will - Income receivable is probable at the grant of probate - Measurement criteria are considered met When these criteria have been met, income from legacies is recognised in the financial statements after a deduction for estimated costs. Legacy income recognised in the year was £29.2m (2022/23: £31.0m), at the year end accrued legacy income was £28.2m (2022/23: £23.3m). To allow for movement in the value of estates during the completion of administration, an annual analysis for a previous 5-year period is undertaken to review estimated legacy income value to actual value received. This is used to determine whether a haircut should be applied. The review for 2023/24 concluded that no haircut (2022/23: 0%) should be applied to estimates provided. A contentious legacy arises when a claim is made against the estate. Income from contentious legacies is only recognised when there is certainty of receipt and all other legacy accrual criteria is met. An additional 5% reduction is applied to estimates provided to allow for greater uncertainty due to length of time to resolve. 97 Annual Report and Accounts 2023/24 ## (ii) Grant creditor balances (Note 17) With the exception of some major capital redevelopment projects, where approved expenditure commitments are used, grant expenditure is straight-lined over the period of the grant to determine whether grant creditors are within one year, or beyond. There can be variances in timing of actual amounts paid out due to the timing of grant recipients requesting payment. ## (iii) Pension Provision (Note 21) A bespoke approach has been adopted in the recognition of the pension provision following information received during the financial year. There is judgement involved that this bespoke approach is appropriate and reasonable. The basis for this judgement is supported by our professional actuarial advisers. ## Estimation uncertainties ## (i) Valuation of land and buildings (Note 9) Valuations are carried out professionally at not more than five-yearly intervals, with an internal review undertaken in all other years. Full valuations were carried out by Montagu Evans LLP for the balance sheet date 31 March 2024. A prior year valuation was also undertaken by Montagu Evans LLP for 31 March 2023. The revaluation resulted in a net decrease in property valuations of £8.4m. This was made up of various property value increases of £0.4m and decreases of £10.9m, offset by depreciation write-backs of £2.1m. The impact of the property market on these assets will be kept under review as part of our internal valuation assessments each year. Estimates give consideration to floor space, location, property type and property market indices. The charity undertakes its own revaluation review in the years when no professional valuation carried out. Where an indication of material upward or downward revaluation is identified, an estimation of the fair value of the property is required. This requires estimation of the future economic benefits from the property and also selection of appropriate discount rates in order to calculate the net present value of those economic benefits. ## (ii) Provisions (Note 21) The position regarding the potential size of the pension exposure is uncertain. The provision set out in Note 21 is based on actuarial analysis of an historic potential NHS employer defined benefit contribution exposure, reasonably discounted to give a best estimate of actual costs to the charity should any exposure be realised. An uplift of £2.3m has been recognised in the financial year, following the adoption of a bespoke approach and taking into consideration the effects of inflation. This is a non-current liability as resolution is expected to be ongoing beyond 31 March 2025. ## **1.1.6 Income and endowments** Income from non-exchange transactions are donations of money, goods, facilities or services which are given freely to the charity by a donor. All income is included in the SOFA when the charity is legally entitled to the income, the amount can be quantified with reasonable accuracy and the receipt of the income is probable. The following specific policies apply to categories of income: ## a) Donations and legacies ## (i) Gifts-in-kind, except donated goods to the hospital: In all cases, the amount at which gifts-in-kind are recognised is either fair value of the cost to the donor or the amount actually realised as appropriate dependent on the gift. Total gifts-in-kind were £0.5m (2022/23: £0.6m). - i. Assets given for distribution by the charity are included in the SOFA only when distributed. 98 Annual Report and Accounts 2023/24 - ii. Assets given for use by the charity are included in the SOFA as income when receivable. - iii. Gifts made in kind but on trust for conversion into cash and subsequent application by the charity are included in the accounting period in which the gift is sold. - iv. Services provided by volunteers such as fundraising event volunteering and office assistance, are not recognised in the SOFA. ## (ii) Legacies: Legacies are accounted for as income when there is evidence of entitlement to the gift, receipt is probable, and its amount can be measured reliably. This is in line with the requirements under FRS 102 and SORP. See 1.1.5 (i). ## (iii) Income from fundraising activities: General donations and Gift Aid are recognised on receipt or accrued for in cases where recognition criteria is met in advance. Ticket, auction and sponsorship income from fundraising events (including raffle and lottery income) are disclosed under other trading activities and recognised when receivable. ## b) Trading activities Income from the charity’s trading subsidiary is disclosed under other trading activities. This income is recognised on sale of goods when dispatched, on royalties and licences when they are contractually entitled to the income, for challenge events in line with when these take place and for commercial sponsorship on an accruals basis or when the event takes place. ## c) Grants and other time-related income Where grants are related to performance and specific deliverables, these are accounted for as the charity earns the right to consideration by its performance. Where income is received in advance of performance, its recognition is deferred and included in creditors. ## d) Investments Investment income is recognised when receivable and allocated to restricted funds where applicable based on the average balance held through the year. ## **1.2 Expenditure** Expenditure is accounted for on an accruals basis and has been classified under the principal categories of ‘expenditure on raising funds’ and ‘expenditure on charitable activities’. The expenditure on raising funds comprise the costs incurred in generating donations and legacy income including apportioned support costs. Expenditure on charitable activities comprises the costs incurred on delivering charitable activities including apportioned support costs. Full provision is made within the financial statements for grant expenditure at the point when a commitment is made, the payment is probable and the liability can be quantified with reasonable certainty. If the commitment is dependent on the grant recipient meeting a performance related condition, this will be provided for when the condition is met. Any redundancy costs are accrued for when notified to the individuals involved and the amount can be determined reliably. Support costs, which include the central functions of Finance, IT, HR, Administration, Business Support, Governance and Supporter Services, are allocated across the categories of expenditure of raising funds, expenditure on charitable activities and other expenditure. The basis of the cost allocation is set out in note 4. ## **1.3 Funds structure** Income and expenditure are allocated to particular funds according to their purpose. 99 Annual Report and Accounts 2023/24 ## a) Permanent endowment funds Funds where the capital is held to generate income for charitable purposes and cannot be spent are accounted for as permanent endowment funds. ## b) Restricted funds Restricted funds include income that is subject to specific restrictions imposed by donors. ## c) Unrestricted funds Unrestricted funds include income received without restriction, including the retained profits of the trading subsidiary. Unrestricted funds are available for use at the discretion of the Trustees in furtherance of the general objectives of the charity. ## d) Designated funds and reserves The Trustees may designate unrestricted funds and reserves for a particular purpose without restricting or committing the funds legally. Designated funds are funds delegated by the Trustees to meet various current or future obligations. Transfers between funds may arise where there is an authorised release of restricted or endowed funds, or when charges are made from unrestricted to other funds. Details of the transfers made in the year are included in note 19. ## **1.4 Intangible fixed assets** a) Capitalisation Intangible assets (software) that are capable of being used for more than one year and have a cost equal to or greater than £5,000, are capitalised. Software is recognised at purchase cost or at total cost of development if designed and built internally. ## b) Valuation Software is valued at cost less accumulated amortisation and accumulated impairment losses. ## c) Amortisation Software is amortised, using the straight-line method, to allocate the depreciable amount of the assets to their residual value over the specific period of the purchased licence, if applicable, or alternatively over a period of between three to ten years, depending on the life cycle of the asset. Amortisation is allocated to support costs in the SOFA. The assets are reviewed for impairment annually, with any impairment losses recognised in the SOFA. ## **1.5 Tangible fixed assets** Non-property tangible fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses. Cost includes the original purchase price, costs directly attributable to bringing the asset to its working condition for its intended use, dismantling and restoration costs. All assets falling into the following categories are capitalised: i) Tangible fixed assets that are capable of being used for more than one year and have a cost equal to or greater than £5,000. Cost includes the original purchase price of the asset and the costs directly attributable to bringing the asset to its working condition for its intended use. ii) Groups of tangible fixed assets that are interdependent or would normally be provided or replaced as a group, with a total value in excess of £5,000 and an individual value of £250 or more (except for computer equipment where only assets with an individual value of £1,000 or more are capitalised). iii) Assets under construction comprising expenditure on the purchase and creation or enhancement of fixed assets not brought into use at the balance sheet date. Transfers are made from the asset under construction to the relevant category of fixed asset in the year the asset is brought in to use. 100 Annual Report and Accounts 2023/24 ## a) Land and buildings Land and buildings are held by the charity as part of charitable objectives to assist the hospital. As a result, properties may be leased below market value and the charity carries substantially all the risks and rewards of ownership. Land and buildings are stated at fair value which is either open market value or depreciated replacement cost. Depreciated replacement cost takes into account the expected timing of potential replacement when properties are subject to leases. Valuations are carried out professionally at not more than five-yearly intervals, with an internal review undertaken in between. A full revaluation was carried out by Montagu Evans LLP for the balance sheet date 31 March 2024. Revaluation gains and losses are recognised in other recognised gains or losses. To the extent that a downward revaluation exceeds previously recognised revaluation gains (also referred to as an impairment), this is recognised within net income. A net decrease of £8.4m was applied to the fixed asset revaluation fund as a result of the change in property valuation estimates so there is no impact on income this year. b) Fixtures, fittings, vehicles and equipment Fixtures, fittings, vehicles and equipment are stated at cost less accumulated depreciation. ## c) Assets under construction Assets under construction are stated at cost. These assets are not depreciated until they are available for use. ## d) Depreciation Depreciation is charged on each main class of tangible fixed asset, depreciating the asset over its expected useful life from the date of use, other than land which is not depreciated, as follows: |Buildings|50-100 years| |---|---| |Fixtures and fittings|15 years| |Office equipment|10 years| |Vehicles|10 years| |IT equipment
|5 years| ## e) Donated assets Donated assets are capitalised at their valuation on a full replacement cost basis or fair value where this is not the same on receipt and are depreciated as described above. ## f) Subsequent additions Subsequent costs, including major inspections, are included in the asset's carrying amount or recognised as a separate asset, as appropriate, only when it is probable that economic benefits associated with the item will flow to the charity and the cost can be measured reliably. Repairs, maintenance and minor inspection costs are expensed as incurred. ## g) Derecognition Tangible fixed assets are derecognised on disposal or when no future economic benefits are expected. On disposal, the difference between the net disposal proceeds and the carrying amount is recognised in the SOFA. ## **1.6 Financial instruments** The charity has chosen to adopt Section 11 of FRS 102 in respect of financial instruments. ## Financial assets Fixed and current asset investments consist of long-term investments and short-term deposit portfolios comprising: i) Quoted stocks and shares, included in the balance sheet at market value, which is equivalent to fair value. For 2023/24 the value is £138.8m (2022/23: £91.9m) ii) Cash deposits, held at cost plus accrued interest. For 2023/24 the value is £45.6m (2022/23: £47.0m) 101 Annual Report and Accounts 2023/24 iii) Investments in subsidiary undertakings, stated at cost less impairment. For 2023/24 the carrying value is £2 (2022/23: £2) All gains and losses are taken to the SOFA as they arise. Realised gains and losses on investments are calculated as the difference between sales proceeds and the market value at the start of the year (or date of purchase if later). Unrealised gains and losses are calculated as the difference between market value at the year end and market value at the start of the year (or date of purchase if later). ## **1.7 Stock** Stock consist of purchased goods for resale, which are valued at the lower of cost and the estimated selling price, less costs to complete and sell. Provision is made for any obsolete or slow-moving items. benefit scheme that covers NHS employers, GP practices and other bodies, allowed under the direction of the Secretary of State, in England and Wales. The scheme is not designed to be run in a way that would enable the charity to identify its share of the underlying scheme assets and liabilities and is therefore accounted for as though it were a defined contribution scheme in accordance with FRS 102 section 28.11. The cost of participating in the scheme is taken as equal to the contributions payable to the scheme for the accounting period. As the scheme is a government run scheme, the ultimate responsibility for any underfunding lies with the government and the charity cannot be held liable. Consideration is given to the following by the NHS Pension Scheme when calculating these contributions: ## a) Accounting valuation ## **1.8 Employee benefits** The charity provides a range of benefits to employees, including paid holiday arrangements and a defined contribution pension plan. Short-term benefits, including holiday pay and other similar non-monetary benefits, are recognised as an expense in the period in which the service is received. Most employees are members of the defined contribution pension plan. A defined contribution plan is a pension plan under which the charity pays fixed contributions into a separate entity. Once the contributions have been paid the charity has no further payment obligations. Contributions are chargeable to the SOFA in the period to which they relate. The assets of the plan are held separately from the charity in independently administered funds. The charity also participates in the NHS Pension Scheme, with one current employee and a number of former employees being covered by the provisions of that scheme. Details of the benefits payable under these provisions can be found on the NHS Pensions website. The scheme is an unfunded, defined b) Full actuarial (funding) valuation ## c) Scheme provisions This is in line with FRS 102 whereby “multiemployer plans are classified as defined contribution or defined benefit plans on the basis of the terms of the plan, including any constructive obligation. However, where sufficient information is not available to use defined benefit accounting then the employer should account for the plan as a defined contribution plan and provide additional disclosures.” ## **1.9 Taxation** Great Ormond Street Hospital Children’s Charity, as a registered charity, is exempt from income tax under part 10 of the Income Tax Act 2007 or Section 256 of the Taxation of the Chargeable Gains Act 1992, to the extent that surpluses are applied to its charitable purposes. No corporation tax charge has arisen in GOSIPL, due to its policy of gifting all taxable profits to the charity each year. Irrecoverable VAT is charged against the category of expenditure for which it was incurred. 102 Annual Report and Accounts 2023/24 ## **1.10 Leases** Leases that do not transfer all the risks and rewards of ownership are classified as operating leases. Payments under operating leases are charged to the SOFA on a straightline basis over the period of the lease. Incentives received to enter into an operating lease are credited to the SOFA, to reduce the lease expense, on a straight-line basis over the period of the lease. ## **1.11 Related party transactions** On consolidation, transactions with related parties, of a similar nature, are aggregated unless, in the opinion of the Trustees, separate disclosure is necessary to understand the effect of the transactions on the group financial statements. ## **1.12 Cash and cash equivalents** Cash and cash equivalents includes cash at bank, cash in hand, deposits held at call with banks, other short-term highly liquid investments and bank overdrafts. Bank overdrafts, when applicable, are shown within borrowings in current liabilities. ## **1.13 Provisions and contingencies** ## (i) Provisions Provisions are recognised when the charity has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resource will be required to settle the obligation and the amount of the obligation can be estimated reliably. Contingent liabilities arise as a result of past or present events when (a) it is not probable that there will be an outflow of resources or that the amount cannot be reliably measured at the reporting date or (b) when the existence will be confirmed by the occurrence or non-occurrence of uncertain future events not wholly within the charity’s control. Contingent liabilities are disclosed in the financial statements unless the probability of an outflow of resources is remote. Contingent liabilities are not recognised as a liability, except those acquired in a business combination. Contingent assets are not recognised, but are disclosed in the financial statements when an inflow of economic benefits is probable. ## **1.14 Debtors and Creditors** Trade and other debtors are recognised at the settlement amount due after any discount offered and net of any bad debt provision. Prepayments are valued at the amount prepaid net of any trade discounts due. Creditors and provisions are recognised where the charity 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 recognised at their settlement amount. Provisions are measured at the present value of the expenditure expected to be required to settle the obligation using a pre-tax rate that reflects current market assessment of the time value of money and the risks specific to the obligation. The increase in provision due to the passage of time is recognised as a finance cost. ## (ii) Contingencies 103 Annual Report and Accounts 2023/24 Great Ormond Street Hospital Children’s Charity Notes to the financial statements ## **1. Accounting policies (continued)** ## **1.15 Great Ormond Street International Promotions Limited** The charity has a wholly-owned trading subsidiary, Great Ormond Street International Promotions Limited (GOSIPL) with paid-up share capital of £2. GOSIPL is incorporated in the UK. The principal activities of the company are commercial activities, namely licensing, sales, promotions and mail order. A summary of its trading results and net assets is shown below. These results are included in the group consolidation. Audited financial statements are filed with Companies House. ||**Year ended**|Year ended| |---|---|---| ||**31 March**|31 March| ||**2024**|2023| ||**£000**|£000| |**Profit and loss account**||| |Turnover|**2,719**|1,837| |Cost of sales|**(527)**|(337)| |**Grossprofit**|**2,192**|1,500| |Administrative expenses|**(374)**|(357)| |**Operating profit**|**1,818**|1,143| |Interest receivable and similar income|**16**|3| |**Profit before taxation**|**1,834**|1,146| |Taxation|**-**|-| |**Profit for the financialyear**|**1,834**|1,146| |Distribution to Charity|**(1,834)**|(1,146)| |**Net movement in funds**|**-**|-| **Balance sheet as at 31 March 2024** ||**Total at 31**|Total at 31| |---|---|---| ||**March 2024**|March 2023| ||**£000**|£000| |Stock|**61**|35| |Debtors|**930**|791| |Cash|**1,283**|945| |Current liabilities|**(2,249)**|(1,746)| |**Net assets**|**25**|25| |Profit and loss account|**25**|25| |**Share capital and reserves**|**25**|25| 104 Annual Report and Accounts 2023/24 ## Great Ormond Street Hospital Children’s Charity Notes to the financial statements ## **2 Income** |||**Restricted and**|||Restricted and|| |---|---|---|---|---|---|---| ||**Unrestricted**|**endowment**|**Year ended 31**|Unrestricted|endowment|Year ended 31| ||**Funds**|**funds**|**March 2024**|Funds|funds|March 2023| ||**£000**|**£000**|**£000**|£000|£000|£000| |**Income and endowments from:**||||||| |**2.1 Donations and legacies**||||||| |Direct gifts from individuals and trusts|**29,421**|**25,823**|**55,244**|28,341|16,367|44,708| |Legacies|**28,081**|**1,124**|**29,205**|28,797|2,186|30,983| |Community fundraising|**7,619**|**3,896**|**11,515**|9,980|913|10,893| |Partnerships, campaigns and events|**2,462**|**9,195**|**11,657**|3,556|4,253|7,809| |Other income|**269**|**1,032**|**1,301**|571|2,127|2,698| ||**67,852**|**41,070**|**108,922**|71,245|25,846|97,091| |**2.2 Trading activities**||||||| |Auctions, tickets, sponsorship and other income|**4,813**|**2,466**|**7,279**|1,073|2,150|3,223| |Fundraisingtrading|**2,167**|**550**|**2,717**|1,713|124|1,837| ||**6,980**|**3,016**|**9,996**|2,786|2,274|5,060| |**2.3 Investments**||||||| |Fixed term deposit and bank proceeds|**8,754**|**144**|**8,898**|2,939|7|2,946| |Dividend income|**642**|**-**|**642**|589|**-**|589| ||**9,396**|**144**|**9,540**|3,528|7|3,535| |**2.4 Charitable activities**||||||| |Grants|**-**|**439**|**439**|-|(31)|(31)| |Property|**1,770**|**543**|**2,313**|1,735|301|2,036| ||**1,770**|**982**|**2,752**|1,735|270|2,005| |||||||| |**Total income**|**85,998**|**45,212**|**131,210**|79,294|28,397|107,691| Included within income and endowments from donations and legacies is Gift Aid income of £7.8m (2022/23: £7.5m) and gifts-in-kind income of £0.5m (2022/23: £0.6m). Gifts-in-kind of £0.5m (2022/23: £0.6m) are also recognised within expenditure, included within Note 3.1. Trading activities now includes income from the GOSH Charity lottery of £4.0m, which was previously shown within direct gifts from individuals and trusts (2022/23: £1.8m). There was endowment income relating to interest of £19k within the year (2022/23: £Nil). 105 Annual Report and Accounts 2023/24 ## Great Ormond Street Hospital Children’s Charity Notes to the financial statements ## **3 Expenditure** |**3**
**Expenditure**||||||| |---|---|---|---|---|---|---| ||||**Year ended**|||Year ended| ||**Direct costs**|**Support costs**|**31 March 2024**|Direct costs|Support costs|31 March 2023| |**3.1 Raising funds:**|**£000**|**£000**|**£000**|£000|£000|£000| |Direct gifts from individuals and trusts|**23,916**|**2,798**|**26,714**|21,706|2,271|23,977| |Legacies|**1,810**|**567**|**2,377**|1,447|544|1,991| |Community fundraising & mass participa|**3,703**|**2,486**|**6,189**|3,904|2,236|6,140| |Partnerships & special events|**2,590**|**2,106**|**4,696**|2,443|1,711|4,154| |Trading activities|**625**|**162**|**787**|436|78|514| |Fundraising support teams|**3,016**|**2,351**|**5,367**|2,084|1,574|3,658| |Investment management costs|**57**|**31**|**88**|87|13|100| ||**35,717**|**10,501**|**46,218**|32,107|8,427|40,534| ||||**Year ended**|||Year ended| ||**Direct costs**|**Support costs**|**31 March 2024**|Direct costs|Support costs|31 March 2023| |**3.2 Charitable activities:**|**£000**|**£000**|**£000**|£000|£000|£000| |Patients, family and staff support|**6,663**|**692**|**7,355**|12,201|1,782|13,983| |Research|**17,188**|**1,784**|**18,972**|4,415|644|5,059| |Technology and innovation|**(1,794)**|**219**|**(1,575)**|3,080|450|3,530| |Redevelopment and environment|**16,958**|**1,759**|**18,717**|1,648|240|1,888| |Propertyand other|**3,195**|**329**|**3,524**|3,540|517|4,057| ||**42,210**|**4,783**|**46,993**|24,884|3,633|28,517| |**Total expenditure**|**77,927**|**15,284**|**93,211**|56,991|12,060|69,051| ||**Year ended**|Year ended|Year ended| |---|---|---|---| ||**31 March 2024**|31 March|2023| |**3.3 Expenditure includes charges for:**|**£000**||£000| |Lease rentals|549||634| |Fees payable to the charity's auditors for the audit of the|95||117| |group annual report and financial statements, excluding|||| |VAT (see below)|||| |Amortisation (Note 8)|812||821| |Depreciation(Note 9)|2,200|2,292|| Lease rentals include the rental costs for our office, IT leases and the hire of photocopiers. Charitable activities includes grants awarded, along with other charitable expenditure, for example, property costs and legal fees. The negative spend of £1.6m in technology and innovation is driven by grants awarded of £2.4m, but offset by grant retractions of £4.2m with £3.9m of this relating to Electronic Patient Records (EPR) optimisation. There were delays to work in this area as a result of the pandemic and so it was agreed with the Hospital that this grant would be closed but that they would reapply for funding once the scope and requirements for EPR optimisation are further defined. In 2022/23, the fees payable to the Charity’s auditors included an amount for additional work completed relating to the 2021/22 financial year audit in relation to the provision within Note 21. No such work was required during 2023/24. 106 Annual Report and Accounts 2023/24 Great Ormond Street Hospital Children’s Charity Notes to the financial statements ## **4 Support costs** |||||**Year ended**| |---|---|---|---|---| |||||**31 March**| ||**Staff costs**|**IT**|**Other**|**2024**| ||**£000**|**£000**|**£000**|**£000**| |Expenditure on raising funds|6,280
|1,022

|3,199
|**10,501**| |Patients, Family and Staff Support|414|67
|211

|**692**
| |Research|1,067|174
|543
|**1,784**| |Technology and Innovation|131
|21
|67|**219**| |Redevelopment and Environment|1,052|171|536|**1,759**| |Propertyand other|197|32|100|**329**| |**Total**|**9,141**|**1,487**|**4,656**|**15,284**| Support costs include the costs of the following teams: People, Finance, Corporate Services, Technology, Administration, Brand Marketing, Digital Engagement and Communications as well as office rental and running costs. These are allocated using a full-cost model, which is calculated using drivers from each team’s activities during the year. Non-support staff costs are allocated directly to activities. |||||**Year ended**| |---|---|---|---|---| |||||**31 March**| ||**Staff costs**|**IT**|**Other**|**2023**| ||**£000**|**£000**|**£000**|**£000**| |Expenditure on raising funds|4,570|697|3,160|**8,427**| |Patients, Family and Staff Support|967|147|668|**1,782**| |Research|350|53|241|**644**| |Technology and Innovation|244|37|169|**450**| |Redevelopment and Environment|130|20|90|**240**| |Propertyand other|280|43|194|**517**| |**Total**|**6,541**|**997**|**4,522**|**12,060**| 107 Annual Report and Accounts 2023/24 Great Ormond Street Hospital Children’s Charity Notes to the financial statements ## **5 Grant funded activities** ||**Year ended**|**Year ended**|Year ended|Year ended| |---|---|---|---|---| ||**31 March**|**31 March**|31 March|31 March| ||**2024**|**2024**|2023|2023| |**Name of recipient:**|**£000**|**No. awarded**|£000|No. awarded| |Great Ormond Street Hospital|31,898|69|20,913|58| |Institute of Child Health|5,322|19|1,851|8| |University College London|3,743|10|1,145|5| |Newcastle University|582|2|230|1| |University of Southampton|445|2|-|-| |University of Edinburgh|250|1|-|-| |Keele University|250|1|-|-| |The Hospital for Sick Children|190|2|63|1| |University of Manchester|127|1|191|1| |Oxford University|124|1|-|-| |University of Liverpool|27|1|-|-| |Imperial College London|2|1|-|-| |Cancer Research UK|-|-|1,250|2| |King’s College London|-|-|499|2| |Queen Mary University of London|-|-|250|1| |University of Nottingham|-|-|242|1| |Guy's and St Thomas' NHS Foundation Trust|-|-|113|1| |**Total**|**42,960**|**110**|**26,747**|**81**| All grant funded activities are to institutions. 108 Annual Report and Accounts 2023/24 ## Great Ormond Street Hospital Children’s Charity Notes to the financial statements ## **6 Details of staff numbers and costs** ## **6.1 Employees** ||**Year ended**|Year ended| |---|---|---| ||**31 March 2024**|31 March 2023| ||**No. of staff**|No. of staff| |**The average number of employees is split as follows:**||| |Fundraising|**144**|136| |Finance & Resources|**43**|52| |Marketing & Communications|**38**|37| |Impact & Charitable Programmes|**17**|15| |CEO Directorate(includes Directors)|**20**|8| |**Total**|**262**|248| |**The average full time equivalent is split as follows:**||| |Fundraising|**140**|131| |Finance & Resources|**42**|51| |Marketing & Communications|**37**|37| |Impact & Charitable Programmes|**16**|14| |CEO Directorate(includes Directors)|**19**|8| |**Total**|**254**|241| The number of employees reported for the year is split by Directorate. ## **6.2 Analysis of staff costs** |**6.2 Analysis of staff costs**||| |---|---|---| ||**Year ended**|Year ended| ||**31 March 2024**|31 March 2023| ||**£000**|£000| |Salaries and wages|**11,417**|10,531| |Social security costs|**1,255**|1,204| |Pension costs|**830**|724| |Other employee benefits|**12**|8| |**Total emoluments of employees**|**13,514**|12,467| |Included within Salaries and wages is £15k (2022/23 £7k) of ex gratia costs.||| |**Pension costs are split as follows:**||| |Defined contribution scheme|**817**|711| |Final salaryscheme|**14**|13| |**Totalpension costs**|**831**|724| |**Outstanding contributions as at the year end were:**||| |Defined contribution scheme|**102**|89| |Final salaryscheme|**1**|1| |**Total outstanding contributions**|**103**|90| 109 Annual Report and Accounts 2023/24 ## Great Ormond Street Hospital Children’s Charity ## Notes to the financial statements ## **6. Details of staff numbers and costs (continued)** - **6.3** The number of employees whose emoluments, as defined for taxation purposes (i.e. net of employer pension contributions and employer national insurance contributions), amounted to £60,000 or more in the year were as follows: ||**Total at**|Total at| |---|---|---| ||**31 March**|31 March| ||**2024**|2023| |£60,000 - £69,999|**13**
|13
| |£70,000 - £79,999|**6**
|3| |£80,000 - £89,999|**4**
|4| |£90,000 - £99,999|**1**|-| |£100,000 - £109,999|**2**|5| |£110,000 - £119,999|**3**
|1
| |£160,000 - £169,999|-
|1
| |£170,000 - £179,999|**1**|-| The employee in the top band for 31 March 2024 and 31 March 2023 was the Chief Executive. ## **6.4 Key management personnel** Key management personnel emoluments, comprising wages and salaries, and other benefits but excluding pension contributions were as follows: |Chief Executive Officer
Other Executive Directors
Key management personnel|**Total at**
**31 March**
**2024**
Total at
31 March
2023
**£000**
£000
**173**
165
**413**
430| |---|---| ||**586**
595| Key management personnel is defined as members of the Senior Leadership Team, 31 March 2024: 5 (31 March 2023: 5). The decrease primarily reflects a time gap between the previous Director of Impact and Charitable Programmes leaving and the new one starting. All staff, including Directors, were given the option to join an employer-paid health cash plan, which is treated as a benefit-in-kind. The total amount of employee benefits received by the Senior Leadership Team for the year was £639k (2022/23: £648k) of which £586k (2022/23: £595k) was actual gross salary and £53k (2022/23: £53k) was paid for pension contributions. ## **7. Trustees’ remuneration and indemnity insurance** None of the Trustees received any remuneration from the charity or its subsidiaries during the current or previous financial year. One of the Trustees was reimbursed for expenses totalling <£1k while carrying out their responsibilities for the charity during the year (2022/23: <£1k). The charity holds Directors and Officers Liability (D&O) insurance policies at a cost of £50k (2022/23: £42k). 110 Annual Report and Accounts 2023/24 Great Ormond Street Hospital Children’s Charity Notes to the financial statements ## **8. Intangible assets** ## **Consolidated and Charity** ## As at 31 March 2024: ||**IT software**| |---|---| ||**£000**| |**Cost:**|| |Balance as at 1 April 2023|7,684| |**Balance at 31 March 2024**|**7,684**| |**Accumulated amortisation:**|| |Balance as at 1 April 2023|4,658| |Charge for theyear|812| |**Balance at 31 March 2024**|**5,470**| |**Net book value at 31 March 2024**|**2,214**| |**Net book value at 31 March 2023**|**3,026**| Intangible assets are identifiable software assets. Amortisation of intangible assets is allocated across support costs in the SOFA. As at 31 March 2023: ||IT software| |---|---| ||£000| |Cost:|| |Balance as at 1 April 2022|7,684| |Balance at 31 March 2023|7,684| |Accumulated amortisation:|| |Balance as at 1 April 2022|3,837| |Charge for theyear|821| |Balance at 31 March 2023|4,658| |Net book value at 31 March 2023|3,026| 111 Annual Report and Accounts 2023/24 ## Great Ormond Street Hospital Children’s Charity Notes to the financial statements ## **9. Tangible assets** ## **Consolidated and Charity** As at 31 March 2024: ||**Freehold /**||||| |---|---|---|---|---|---| ||**leasehold land**|**Fixtures and**|**Office**|**IT**|| ||**and buildings**|**fittings**|**equipment**|**equipment**|**Total**| ||**£000**|**£000**|**£000**|**£000**|**£000**| |**Cost and valuation**|||||| |Balance as at 1 April 2023|247,514|472|81|288|248,355| |Additions|-|-|74|60|**134**| |Revaluations|(10,514)|-|-|-|**(10,514)**| |**Balance at 31 March 2024**|**237,000**|**472**|**155**|**348**|**237,975**| |**Accumulated depreciation**|||||| |Balance as at 1 April 2023|-|61|12|222|295| |Charge for the year|2,111|31|18|40|**2,200**| |Revaluations|(2,111)|-|-|-|**(2,111)**| |**Balance at 31 March 2024**|**-**|**92**|**30**|**262**|**384**| |**Net book value at 31 March 2024**|**237,000**|**380**|**125**|**86**|**237,591**| |Net book value at 31 March 2023|247,514|411|70
|66
|248,061| |Historical cost less depreciation at 31
March 2024|166,501|380|125|86|167,092| A full independent professional valuation was undertaken by Montagu Evans LLP of all properties as at 31 March 2024 in accordance with the Statement of Recommended Practice and FRS 102. The valuation resulted in a net decrease in property valuations of £10.5m, made up of decreases totalling £10.9m and increases of £0.4m. With depreciation write-backs of £2.1m factored in, this has resulted in a net loss on revaluation of £8.4m which is recorded in the SOFA. This change does not impact the level of the Charity’s cash or investments or our unrestricted general or designated funds and does not impact on the ability of the Charity to meet any of its actual or planned expenditure commitments. The movement in property valuation was offset by a reduction in the corresponding tangible fixed assets and property valuation reserves. Note that the Zayed Centre for Research (ZCR) was previously valued based on methodology that included the full land site, but has now been refined such to include only the land site that is developable, to better reflect that possible value of the land associated with the property. This resulted in a £7.4m decrease in value. A multitude of factors are used to support the valuation, including (but not exclusive to) market performance, comparable evidence, building drawings and consideration of specialist use of property. 112 Annual Report and Accounts 2023/24 Great Ormond Street Hospital Children’s Charity Notes to the financial statements Charity-owned buildings used by the hospital for clinical purposes are valued on a depreciated replacement costs basis unless a market value has been deemed by Montagu Evans LLP to be feasible and more appropriate. The depreciated replacement cost basis is the most commonly used basis for specialist buildings such as these. This is because transactions involving the sale of these types of assets are relatively infrequent and therefore estimating a market value is not considered feasible due to their specialist nature. Depreciated replacement cost is deemed to be an acceptable alternative to market value and is a methodology that is recognised by the International Valuation Standards Council. Land values associated with these charity buildings are valued at fair value. All residential and office properties are valued at market value using comparable market information based on location, condition and quality of properties, and the nature of the market at time of valuation. ## As at 31 March 2023 |Cost and valuation
Balance as at 1 April 2022
Transfers
Additions
Disposals
Revaluations
Balance at 31 March 2023
Accumulated depreciation
Balance as at 1 April 2022
Charge for the year
Disposals
Revaluations
Balance at 31 March 2023
Net book value at 31 March 2023
Net book value at 31 March 2022
Historical cost less depreciation at 31
March 2023|Restated
Freehold /
leasehold land
and buildings
Fixtures and
fittings
Office
equipment
Vehicles
IT
equipment
Total
£000
£000
£000
£000
£000
£000
315,784
472
70
13
279
316,618
-
-
-
-
-
-
-
-
11
-
9
20
-
-
-
(13)
-
(13)
(68,270)
-
-
-
-
(68,270)| |---|---| ||247,514
472
81
-
288
248,355| ||-
30
4
13
188
235
2,220
31
7
-
34
2,292
-
-
-
(13)
-
(13)
(2,220)
-
-
-
-
(2,220)| ||-
61
11
-
222
294| ||247,514
411
70
-
66
248,061| ||315,784
442
66
-
91
316,383| ||166,501
411
70
-
66
167,048| The prior year valuation resulted in a net decrease in property valuations of £68.3m, made up of an overall property value decrease of £69.5m, increase of £1.2m together with depreciation write-backs of £2.2m. 113 Annual Report and Accounts 2023/24 ## Great Ormond Street Hospital Children’s Charity Notes to the financial statements ## **10. Investments** ## **10.1 Analysis of fixed asset investments** ## **Consolidated and Charity** As at 31 March 2024 ||**Total at**|Total at| |---|---|---| ||**31 March**|31 March| ||**2024**|2023| ||**£000**|£000| |Market value at 1 April|**91,895**|98,016| |Acquisitions at cost|**34,000**|-| |Netgain/ (loss)on revaluation|**12,883**
|(6,121)
| |**Market value at 31 March**|**138,778**|91,895| |Historical cost at 31 March|**124,000**|90,000| ## 10.2 Market Value ||||**Total at**|||Total at| |---|---|---|---|---|---|---| ||||**31 March**|||31 March| ||||**2024**|||2023| ||Held in the|Held outside||Held in the|Held outside|| ||UK|the UK|**Total**|UK|the UK|Total| ||**£000**|**£000**|**£000**|£000|£000|£000| |Investments|13,909|124,869|138,778|6,658|85,237|91,895| |**Total fixed asset investments at market value**|**13,909**|**124,869**|**138,778**|6,658|85,237|91,895| An amount of £34.0m (2022/23: £Nil) was placed into long-term investments during the year. Fixed income investments and liquidity funds are included in the short-term portfolio. All other investments are included in the long-term portfolio. ## **Investment Powers** The Charity Commission Scheme dated 18 August 1998 gives the charity unrestricted investment powers. As a result of holding investments, the charity is exposed to financial risks, including market risk, credit risk and liquidity risk. The charity manages market and credit risk by appointing professional investment managers and ensuring a balanced and diverse portfolio, giving regard to the overall level of risk as well as the risk associated with each investment type. Market risk arises as a result of market fluctuations caused by movements in interest rates, currency and other market factors. Credit risk arises as a result of funds the charity is invested in, failing to make a redemption of the investment. The charity is not significantly exposed to credit risk with any bank (e.g. for cash balances) or financial institution, and the Investment Committee regularly review investment reports to ensure an appropriate level of risk is maintained. Liquidity risk is managed by the charity’s Liquidity, Funds & Reserves policy which states that the charity is required to hold sufficient cash and other liquid assets to cover at least two years of total projected expenditure. 114 Annual Report and Accounts 2023/24 ## Great Ormond Street Hospital Children’s Charity ## Notes to the financial statements ## **10.3 Charity investment in Great Ormond Street International Promotions Limited (GOSIPL)** **----- Start of picture text -----**
|||| |---|---|---| |Total at|Total at| |31 March|31 March| |2024|2023| |Total|£2|£2| **----- End of picture text -----**
The net result for GOSIPL in 2023/24 is a surplus of £1,833,878 (2022/23: £1,146,320) with a distribution to the charity of £1,833,878 (2022/23: £1,146,320). ## **11. Stock** **----- Start of picture text -----**
Consolidated Charity
Total at Total at Total at Total at
31 March 31 March 31 March 31 March
2024 2023 2024 2023
£000 £000 £000 £000
Goods for resale 61 35 - -
Stock 61 35 - -
**----- End of picture text -----**
## **12. Short-term deposits** **----- Start of picture text -----**
Consolidated Charity
Total at Total at Total at Total at
31 March 31 March 31 March 31 March
2024 2023 2024 2023
£000 £000 £000 £000
Short-term deposits 139,576 135,706 139,576 135,706
Short-term deposits 139,576 135,706 139,576 135,706
**----- End of picture text -----**
All short-term deposits are held in the UK. ## **13. Debtors** **----- Start of picture text -----**
|||||| |---|---|---|---|---| |Consolidated|Charity| |Total at|Total at|Total at|Total at| |31 March|31 March|31 March|31 March| |2024|2023|2024|2023| |£000|£000|£000|£000| |Trade debtors|5,047|2,615|4,740|2,351| |Amounts owed by group undertakings|-|-|1,890|1,645| |Other debtors|545|2,589|802|2,589| |Prepayments|2,005|2,341|1,943|2,029| |Accrued income - Legacies|28,234|23,330|27,783|23,330| |Accrued income - Other|1,973|2,764|1,864|2,549| |Debtors falling due within one year|37,804|33,639|39,022|34,493| **----- End of picture text -----**
115 Annual Report and Accounts 2023/24 ## Great Ormond Street Hospital Children’s Charity Notes to the financial statements ## **14. Creditors: amounts falling due within one year** **----- Start of picture text -----**
Consolidated Charity
Total Total Total Total
31 March 31 March 31 March 31 March
2024 2023 2024 2023
£000 £000 £000 £000
Trade creditors 1,588 1,397 1,583 1,389
Taxation and social security 556 419 556 419
Grants awarded (see note 17) 36,473 45,116 36,473 45,116
Other creditors 205 359 205 359
Accruals 1,718 1,777 1,682 1,756
Deferred income (Note 16) 923 865 863 794
Creditors falling due within one year 41,463 49,933 41,362 49,833
**----- End of picture text -----**
## **15. Creditors: amounts falling due after more than one year** **----- Start of picture text -----**
Consolidated Charity
Total Total Total Total
31 March 31 March 31 March 31 March
2024 2023 2024 2023
£000 £000 £000 £000
Grants awarded (see note 17) 25,914 19,884 25,914 19,884
Rent-free provision 105 211 105 211
Creditors falling due after one year 26,019 20,095 26,019 20,095
**----- End of picture text -----**
Rent-free provision relates to the 10-year lease agreement for the charity office, which includes a rent free period released over the first 5 years ahead of a break clause. ## **16. Deferred income** ||Total|||**Total**|Total|||Total| |---|---|---|---|---|---|---|---|---| ||1 April|||**31 March**|1 April|||31 March| ||2023|Released|Deferred|**2024**|2022|Released|Deferred|2023| ||£000|£000|£000|**£000**|£000|£000|£000|£000| |Charity|794|(794)|863|**863**|785|(785)|794|794| |Trading subsidiary|71|(71)|60|**60**|37|(37)|71|71| |**Deferred income**|865|(865)|923|**923**|822|(822)|865|865| Income is deferred for future events where it is refundable or has been received in advance. 116 Annual Report and Accounts 2023/24 ## Great Ormond Street Hospital Children’s Charity Notes to the financial statements ## **17. Grants awarded** |**Consolidated and Charity**|**Year ended**|Year ended| |---|---|---| ||**31 March**|31 March| ||**2024**|2023| ||**£000**|£000| |Outstanding liabilities at the beginning of year|65,000|67,742| |**Awarded during the year**||| |Redevelopment and Environment|16,762|2,019| |Technology and Innovation|2,397|3,342| |Research|17,559|6,732| |Patients,Familyand Staff Support and other|6,242|14,654| |**Awarded during theyear**|**42,960**|**26,747**| |**Paid during the year**||| |Redevelopment and Environment|(17,907)|(5,682)| |Technology and Innovation|(2,577)|(2,639)| |Research|(7,694)|(6,641)| |Patients,Familyand Staff Support and other|(12,647)|(8,663)| |**Paid during theyear**|**(40,825)**|**(23,625)**| |**Adjustments in the year**||| |Redevelopment and Environment|(112)|(464)| |Technology and Innovation|(4,190)|(262)| |Research|(371)|(2,318)| |Patients,Familyand Staff Support and other|(74)|(2,820)| |**Adjustments in theyear**|**(4,747)**|**(5,864)**| |**Outstanding liabilities at 31 March**|**62,388**|**65,000**| |**Grant Creditor Balances**||| ||**Year ended**|Year ended| ||**31 March**|31 March| ||**2024**|2023| ||**£000**|£000| |Amounts falling due within one year|36,474|45,116| |Amounts fallingdue after more than oneyear but less than 5years|25,914|19,884| |**Outstanding liabilities at 31 March**|**62,388**|**65,000**| Total grants awarded does not include expenditure on charity properties, expenditure from special purpose funds or costs incurred by the charity to support and facilitate charitable activities. Liabilities for grants awarded represent the unpaid balance on grants awarded by the charity as at the balance sheet date. They relate to current activities funded by the charity to which it is firmly committed. Unpaid balances due after more than one year are not discounted as the impact overall would be immaterial. Adjustments primarily relate to grant retractions whereby all funds allocated have not been used and are no longer required and therefore returned to funds for reallocation. 117 Annual Report and Accounts 2023/24 ## Great Ormond Street Hospital Children’s Charity Notes to the financial statements ## **18. Analysis of consolidated net assets between funds** ||||||**Total at**| |---|---|---|---|---|---| ||||||**31 March**| ||||||**2024**| ||**Unrestricted**||**Restricted**|**Endowment**|**Total funds**| ||**General**|**Designated**|||| ||**£000**|**£000**|**£000**|**£000**|**£000**| |**Fund balances at 31 March 2024 are represented by:**|||||| |Tangible and intangible fixed assets|-|239,805|-|-|**239,805**| |Long-term investments|-|138,114|-|664|**138,778**| |Net current assets|24,005|72,893|84,701|-|**181,599**| |Long-term liabilities|(4,005)|-|(25,914)|-|**(29,919)**| |**Total net assets**|**20,000**|**450,812**|**58,787**|**664**|**530,263**| Restricted funds include long-term liabilities of £25.9m (2022/23: £19.9m) and short-term liabilities of £36.5m (2022/23: £45.1m), relating to grants awarded to the hospital, the Institute for Child Health and other research institutions. ||||||Total at| |---|---|---|---|---|---| ||||||31 March| ||||||2023| ||Unrestricted||Restricted|Endowment|Total funds| ||General|Designated|||| ||£000|£000|£000|£000|£000| |Fund balances at 31 March 2023 are represented by:|||||| |Tangible and intangible fixed assets|-|251,087|-|-|251,087| |Long-term investments|-|91,231|-|664|91,895| |Net current assets|21,809|75,281|69,405|-|166,495| |Long-term liabilities|(1,809)|-|(19,884)|-|(21,693)| |Total net assets|20,000|417,599|49,521|664|487,784| 118 Annual Report and Accounts 2023/24 ## Great Ormond Street Hospital Children’s Charity Notes to the financial statements ## **19. Consolidated funds** |A
B
C
D
E
A
B
C
D
E
F
G
H
I
J
K
L
M|**19.1 Endowment funds**
Tippetts and Crux
Lewisohn
Barnes
Mary Shepard Bequest
John Lund Wells Bequest|**1 April**
**2023**
**Income**
**Expenditure**
**Transfers**
**between**
**funds**
**Losses and**
**gains**
**31 March**
**2024**
**£000**
**£000**
**£000**
**£000**
**£000**
**£000**| |---|---|---| |||222 7
- (7)
-
222
11
-
-
-
-
11
7
-
-
-
-
7
407 12
- (12)
-
407
17
-
-
-
-
17| ||**Total endowment funds**|**664**
**19**
**-**
**(19)**
**-**
**664**| ||**19.2 Restricted funds**
Redevelopment
Louis Dundas Centre
Physiotherapy Unit
Translational Oncology research
Regenerative Medicine
The Richard Wright Fund
The Friends Fund
Craniofacial Fund
Clinical Cardiac Chair
Family Studies
Olivia Hodson Cancer Fund
Other special purpose funds
Other restrictedpurpose funds|23,368 37,193 (17,088) (8,514)
-
34,959
1,869 26
-
-
-
1,895
1
-
-
-
-
1
719
- 24
-
-
743
(143)
-
-
-
-
(143)
1,802
-
- (922)
-
880
1,076
-
-
-
-
1,076
68 29 (43)
-
-
54
94 3
-
-
-
97
222 6 (1)
-
-
227
243 115 (153) (20)
-
185
2,773 468 (330) 8
-
2,919
17,429 7,353(4,243) (4,645)
-
15,894| ||**Total restricted funds**|**49,521**
**45,193**
**(21,834)**
**(14,093)**
**-**
**58,787**| |||| ||**Total restricted and endowment funds**|**50,185**
**45,212**
**(21,834)**
**(14,112)**
**-**
**59,451**| ||**19.3 Unrestricted funds**
General funds
**Designated funds and reserves:**
Research fund
Property Redevelopment fund
Other Charitable Commitments fund|20,000 85,998 (69,177) (16,821)
-
20,000
39,200
-
- (3,000)
-
36,200
109,166
-
- 35,112
-
144,278
22,700
-
-(500)
-
22,200| ||Total designated funds|171,066
-
-
31,612
-
202,678| ||Tangible Fixed Assets reserve
Property Revaluation reserve
Intangible Fixed Assets reserve
Investments Revaluation reserve|167,048
- (1,388) 1,432
-
167,092
81,013
-
-
(2,111) (8,403)
70,499
3,026
- (812)
-
-
2,214
(4,554)
-
-
- 12,883
8,329| ||Total designated reserves|246,533
-
(2,200)
(679)
4,480
248,134| |||| ||**Total unrestricted funds**|**437,599**
**85,998**
**(71,377)**
**14,112**
**4,480**
**470,812**| ||**Total funds**|**487,784**
**131,210**
**(93,211)**
**-**
**4,480**
**530,263**| Restricted funds were historically created based on charitable commitments. At each year-end, those restricted funds with negative balances (i.e. where expenditure on the restricted commitment was higher than income received restricted to this commitment) would then have general funds transferred in to leave a restricted funds balance of zero. For 2023/24, restricted funds represent restricted income received less any associated expenditure. This has no impact on the Charity’s overall Funds and Reserves balances. 119 Annual Report and Accounts 2023/24 ## Great Ormond Street Hospital Children’s Charity ## Notes to the financial statements ## **19. Consolidated funds (continued)** **----- Start of picture text -----**
Transfers
1 April between 31 March
2022 Income Expenditure funds Losses and gains 2023
£000 £000 £000 £000 £000 £000
19.1 Endowment funds
A Tippetts and Crux 222 - - - - 222
B Lewisohn 11 - - - - 11
C Barnes 7 - - - - 7
D Mary Shepard Bequest 407 - - - - 407
E John Lund Wells Bequest 17 - - - - 17
Total endowment funds 664 - - - - 664
19.2 Restricted funds
A Redevelopment 1,821 19,445 (790) 2,892 - 23,368
B Louis Dundas Centre 975 57 - 837 - 1,869
C Physiotherapy Unit 1 - - - - 1
D Translational Oncology research 663 - 56 - - 719
E Regenerative Medicine (324) 181 - - - (143)
F The Richard Wright Fund 1,802 - - - - 1,802
G The Friends Fund 1,076 - - - - 1,076
H Craniofacial Fund 64 29 (25) - - 68
I Clinical Cardiac Chair 110 - (16) - - 94
J Family Studies 229 - (7) - - 222
K Olivia Hodson Cancer Fund 130 96 17 - - 243
L Other special purpose funds 2,778 268 (281) 8 - 2,773
M Other restricted purpose funds 5,635 8,321 (20,334) 23,807 - 17,429
Total restricted funds 14,960 28,397 (21,380) 27,544 - 49,521
Total restricted and endowment funds 15,624 28,397 (21,380) 27,544 - 50,185
19.3 Unrestricted funds
General funds 20,009 79,294 (45,379) (33,924) - 20,000
Designated funds and reserves:
Research fund 23,083 - - 16,117 - 39,200
Property Redevelopment fund 111,953 - - (2,787) - 109,166
Other Charitable Commitments fund 28,847 - - (6,147) - 22,700
Total designated funds 163,883 - - 7,183 - 171,066
Tangible Fixed Assets reserve 167,100 - (1,471) 1,419 - 167,048
Property Revaluation reserve 149,285 - - (2,222) (66,050) 81,013
Intangible Fixed Assets reserve 3,847 - (821) - - 3,026
Investments Revaluation reserve 1,567 - - - (6,121) (4,554)
Total designated reserves 321,799 - (2,292) (803) (72,171) 246,533
Total unrestricted funds 505,691 79,294 (47,671) (27,544) (72,171) 437,599
Total funds 521,315 107,691 (69,051) - (72,171) 487,784
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The opening balances for the Tangible Fixed Assets reserve and Property Revaluation reserve were restated in 2022/23 to ensure historical cost of fixed assets brought forward was aligned to Note 9. There was no change to the Net Book Value of the Fixed Assets, nor changes to any other values in the table above. 120 Annual Report and Accounts 2023/24 Great Ormond Street Hospital Children’s Charity Notes to the financial statements ## **19. Consolidated funds (continued)** ## **Designated funds and reserves** The Research fund is designated to provide funds for research, improving outcomes for children through scientific discovery and researching new treatments. The Property Redevelopment fund is designated to provide funds for major building and capital redevelopment projects, e.g. the Children’s Cancer Centre. The Other Charitable Commitments fund is designated to provide funds for non-research and nonproperty redevelopment charitable expenditure, e.g. patient & family support, medical equipment, technology and digital opportunities, the GOSH Learning Academy and maintenance and running costs for property held by the charity as part of providing support to the Hospital. The Tangible Fixed Assets reserve is designated to fund the replacement or refurbishment of such assets belonging to the charity. The value of this reserve is based on historical cost and does not include properties identified for sale. The total value of the Tangible Fixed Assets reserve and the Property Revaluation reserve equals the value of tangible fixed assets shown on the Balance Sheet. The Property Revaluation reserve is designated to reflect changes in value to our property portfolio arising from independent valuations. The Intangible Fixed Assets reserve is designated to fund the replacement of software assets belonging to the charity. The Investments Revaluation reserve is designated to reflect the changes in value to our long-term investments portfolio arising from independent valuations. Transfers between funds represent: - Where subsequent instructions are received from a donor restricting income that was originally received with no restrictions (or vice versa) - Where two restricted funds have a common purpose, transfers may be made to support on an individual project which matches their restrictions. - General funds may be designated for a particular purpose should the Trustees decide this to be appropriate. - Designated funds may be undesignated with the funds returning to General funds should the Trustees decide this to be appropriate. - Movement between unrestricted and designated funds to hold the correct closing balances in each fund as per the charity’s liquidity, funds and reserves policy Gains and losses represent increases or decreases in the charity’s property valuations (see Note 9) and unrecognised gains or losses within the investment portfolio (see Note 10). Negative restricted funds are held in instances whereby we have received assurance from donors of their support for projects that we have funded, but not yet received the funds or a contracted pledge. During the year, a detailed review of funds was undertaken, and where amounts had not been received, funds were transferred from unrestricted funds. 121 Annual Report and Accounts 2023/24 Great Ormond Street Hospital Children’s Charity Notes to the financial statements ## **19. Consolidated funds (continued)** ## **Endowment funds** ## **Name of fund** - A Tippetts and Crux - B Lewisohn - C Barnes - D Mary Shepard Bequest - E John Lund Wells Bequest ## **Description of the nature and purpose of each fund** Capital in perpetuity bequests to be used for research and general purposes. Capital in perpetuity bequests to be used for an annual staff award. Capital in perpetuity bequest for general purposes. Capital in perpetuity bequest for general purposes. Capital in perpetuity bequest for general purposes. ## **Restricted funds** ## **Name of fund** - A Redevelopment - B Louis Dundas Centre - C Physiotherapy Unit - D Translational Oncology research - E Regenerative Medicine ## **Description of the nature and purpose of each fund** To provide finance for major building and capital development. To advance research and clinical practice in palliative care and pain management. To fund the creation of a new physiotherapy unit at GOSH. To conduct research into childhood cancer. To conduct research into engineering rejection free organs with intestinal failure. - F The Richard Wright Fund To fund research into infant and childhood leukaemia. - G The Friends Fund - H Craniofacial Fund - I Clinical Cardiac Chair - J Family Studies - K Olivia Hodson Cancer Fund - L Other special purpose funds - M Other restricted purpose funds To provide funds for family support and children's play services. To research and purchase equipment for craniofacial disorders. To provide support costs for the post of Clinical Cardiac Chair. To provide support to the Psychological Medicine Department. To support projects and roles related to childhood cancer. Funds that are restricted by their donors to various departments within Great Ormond Street Hospital and the Institute of Child Health. To finance specific items of equipment, services or projects. 122 Annual Report and Accounts 2023/24 Great Ormond Street Hospital Children’s Charity Notes to the financial statements ## **20. Notes to the consolidated cash flow statement** ## **20.1 Reconciliation of net income to cash flows from operating activities** ||**Year ended**|Year ended| |---|---|---| ||**31 March**|31 March| ||**2024**|2023| ||**£000**|£000| |Net movement in funds|**42,479**|(33,531)| |Depreciation and amortisation charges|**3,012**|3,113| |Fixed term deposit and bank proceeds|**(8,898)**|(2,946)| |Dividend income|**(642)**|(589)| |Unrealised (gain)/loss on investments|**(12,883)**|6,121| |Impairment of fixed assets|**-**|-| |Fair value of investments acquired|**-**|-| |Unrealised loss on revaluation of land & buildings|**8,403**|66,050| |Impairment of intangible assets|**-**|-| |Decrease in asset held for sale|**-**|-| |Increase in stocks|**(26)**|(9)| |Increase in debtors|**(4,165)**|(12,415)| |Decrease in creditors|**(2,545)**|(2,299)| |Increase inprovisions|**2,302**|198| |**Cash inflow from operating activities**|**27,037**|**23,693**| ## **20.2 Analysis of net funds** ||1 April|Cash|**31 March**|1 April|Cash|31 March| |---|---|---|---|---|---|---| ||2023|flows|**2024**|2022|flows|2023| ||£000|£000|**£000**|£000|£000|£000| |Cash at bank and in hand|47,048|(1,427)|**45,621**|42,321|4,727|47,048| |Short-term deposits|135,706|3,870|**139,576**|113,225|22,481|135,706| |**Total**|**182,754**|**2,443**|**185,197**|155,546|27,208|182,754| 123 Annual Report and Accounts 2023/24 ## Great Ormond Street Hospital Children’s Charity Notes to the financial statements ## **21. Commitments, contingent liabilities and provisions** There are no commitments (other than operating leases disclosed elsewhere) or contingent liabilities requiring disclosure in the financial statements (31 March 2023: nil). The pensions provision of £3.9m relates to an historic potential exposure that came to light during 2021/22 concerning potential employer NHS pension contributions between 2006/07 – 2014/15. This provision represents a ‘best estimate’ based on actuarial analysis of potential costs to the charity and is based on 75% of a ‘total worst case’ position. The best estimate sits within a range of £3.1m for a ‘reasonable best case’, based on 60% of the ‘total worst case’ and £4.7m for a ‘reasonable worst case’, based on 90% of the ‘total worst case’. These percentage discounts are supported by our professional actuarial advisers as reasonable given the high level of uncertainty regarding whether the exposure will be realised and, if so, the extent to which the charity will ultimately incur costs. The provision represents an increase of £2.3m against the prior year provision of £1.6m. The increase is due to a more developed understanding of the potential exposure, should the exposure be realised, and an uplift to reflect inflation. ||**Total at**|Total at| |---|---|---| ||**31 March**|31 March| ||**2024**|2023| ||**£000**|£000| |Employer NHS Pension Contributions|3,900|1,598| |Total|**3,900**|**1,598**| This is a non-current liability as resolution is expected to be ongoing beyond 31 March 2025. ## **22. Legacies** The charity has been notified of 354 legacies which have not been included within the financial statements, as some or all the criteria for recognition have not been satisfied (2022/2023: 312). Of these, 51% are pecuniary legacies which have an average value of £1k (2022/23: 47%, £1k) and the remaining 49% are residuary, life interest, income trust & specific legacies which have an average value of £20k (2022/23: 53%, £16k). The charity does not have any indication of when it is due to receive these monies. Included within the above figures are 28 legacies (2022/23: 24) which are subject to a life interest, as well as 22 specific legacies (2022/23: 20) which are not subject to a life interest. 124 Annual Report and Accounts 2023/24 ## Great Ormond Street Hospital Children’s Charity Notes to the financial statements ## **23. Annual commitments under non-cancellable operating leases** ||**Total at**|Total at| |---|---|---| ||**31 March**|31 March| ||**2024**|2023| ||**£000**|£000| |Operating leases which expire:||| |Within one year|540|557| |Between one and five years|450|991| |After fiveyears|-|-| |**Total**|990|1548| Non-cancellable operating leases include the lease for our office and IT leases. The office lease, which makes up most of the commitments, is for a period of 10 years with a 5-year break clause in February 2026. Therefore, only commitments that fall due up to the break clause are included here. ## **24. Related party transactions** During the year the following related party transactions took place: Two Trustees hold Board positions at the University of Cambridge, but do not have significant influence. During the year Research Grants were provided to the University totalling £358k. During the year donations of £747k (2022/23: £315k) were received from related parties. This includes £459k of fundraising income from Royal Bank of Canada, who are a corporate partner and is where one of the Trustees is employed. The amount also includes donations amounting to £250k from one Trustee. The remaining £38k is made up of various smaller donations. From an accounting perspective, these donations are not considered to be material. The charity entered into material transactions with its subsidiary during the year as listed below. All income and expenditure is removed on consolidation. |**Party**
**Nature of**
**Relationship**
**Transaction**|**Party**
**Nature of**
**Relationship**
**Transaction**|**Party**
**Nature of**
**Relationship**
**Transaction**|**Income for the**
**year ended 31**
**March 2024**
**Debtor balance as**
**at 31 March 2024**
**£000**
**£000**|**Income for the**
**year ended 31**
**March 2024**
**Debtor balance as**
**at 31 March 2024**
**£000**
**£000**| |---|---|---|---|---| |GOSIPL|Wholly owned subsidiary|Management charge for costs incurred by GOSH
charity, distribution of year-end profit to GOSH
charity and costs incurred by one entity on behalf
of another entity.|2,097|1,890| The charity has 115 linked charities, which primarily relate to Special Purpose Funds. These are restricted funds relating to various areas within Great Ormond Street Hospital and the Institute of Child Health. The Charities Commission have confirmed that 114 of these linked charities can be closed, with any funds remaining in the Charity and continuing to operate in the same way, without separate legal entity status. The linked charities were all still open at the balance sheet date, but 107 have since been removed on 21 May 2024 and a further 7 removed on 25 October 2024. 125 Annual Report and Accounts 2023/24 ## **25. Events after the reporting period** There is one event that occurred after the reporting period which requires disclosure. In December 2024, the Board committed £295.5m to Great Ormond Street Hospital towards the Children’s Cancer Centre project, on top of the £34.5m already committed by end financial year 2023/24, bringing the total Charity commitment to funding this project, to £330m. 126 Annual Report and Accounts 2023124 Great Ormond Street Hospital Children's Charity 40 Bernard Street London WC1N 1LE 020 38413841 osh.or www. This Annual Report and Accounts2023/24 is available to view at www. osh.or Great Ormond Street Hospltal Children's Charity. Registered company no. 09338724. Registered charity no. 1160024.