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2022-03-31-accounts

Guy’s and St Thomas’ Foundation Annual Report and Financial Statements 2021/22

Annual report and accounts

2021/22

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Investing in a healthier society

Guy’s and St Thomas’ Foundation Annual Report and Financial Statements 2021/22

Our mission

Guy’s and St Thomas’ Foundation exists to build the foundations of a society that helps everyone stay healthier for longer.

For over 500 years, we’ve been a constant in London’s ever-changing landscape, at the leading edge of health. We are rooted in the heart of a vibrant, diverse global city, where health inequity is stark.

To drive more equitable health, we back people and ideas – investing in fresh thinking and bold action. Our work is supported by our endowment – one of the largest foundations in the UK – which allows us to take a long-term view while addressing the urgent health issues of today.

Through our family of forward-looking organisations, we collaborate with our communities, partners and hospitals, and use our assets to transform lives. We invest, partner, engage and influence, to tackle big health challenges from all angles. This year we continued to meet the pressing health issues that have been brought into sharp focus by the pandemic. We continued to expand our reach and ambition to support communities in Lambeth and Southwark to achieve our mission.

We are driven by a desire to increase our impact by sharing and connecting with others working on better health – because a healthier society is our collective endeavour.

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Guy’s and St Thomas’ Foundation Annual Report and Financial Statements 2021/22

Contents

04 ........ Message from our Chair

06 ........ Message from our Chief Executive

08 ........ Trustees’ report

09 .................. Strategic report

11 ............................... Our future plans

12 .............................. Financial review

17 .............................. Our endowment

23 ............................. Impact on Urban Health

30 ............................. Diversity, equity and inclusion

31 .............................. Principal risks and their management

32 ......................................Strategic risks

35 ......................................Operational risks

35 ....................Structure, governance and management

39 ....................Our commitment to the environment

40 ...................Trustees’ responsibilities

42 ....................Organisation

45 ....................Committees

48 ...................Advisors

49 ........ Auditor’s report and financial statements

88 ........Appendix

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Guy’s and St Thomas’ Foundation Annual Report and Financial Statements 2021/22

Message from our Chair

As a nation we are still adapting to and dealing with the deep and rippling effects of the Covid-19 pandemic on our lives. I am buoyed, however, by our collective resilience and capacity to recover and re-build. This report outlines the work across Guy’s and St Thomas’ Foundation in 2021/22 as we have focused on building the foundations of a healthier society.

In my first year as Chair, it’s been an absolute privilege to witness the impact Guy’s and St Thomas’ Foundation is making in the world, through the collective endeavour of our family of organisations and the successful completion of the first five years (2017 to 2022) of our 30-year strategy.

It is all part of our mission to build the foundation of a society that helps everyone stay healthier, be happier and live longer. We invest, partner, engage and influence to drive our mission. This helps us come at big health challenges from all angles. We have achieved an enormous amount in the past year. Our direct charitable expenditure reached £37.6m in 2021/22 – an increase of £8.6m (30%) from last year – including £22.9m for our Impact on Urban Health programmes where we strive to unlock the potential for cities to become healthier. We also reached £13.1m in our total charitable spend that supports care and staff wellbeing at Guy’s and St Thomas’ NHS Foundation Trust.

We turbocharged our impact investment strategy – increasing our allocation to £100m, with a mandate set by our Trustees for attractive financial returns combined with health and societal impact. Amounting to 10% of the value of our £1bn endowment today, this is the largest known impact investment allocation ever made by a UK charitable endowment. Our aim is to incorporate impact throughout our investment portfolio in the future.

As founding members of SC1, we are working alongside likeminded organisations, to make our shared vision for a world-leading life sciences hub in central London a reality. It will transform healthcare, accelerate innovation, and tackle big problems in order to make a healthier future a reality for all of us.

Importantly, we have unveiled three charities that complete our family of organisations: Guy’s & St Thomas’ Charity, Evelina London Children’s Charity and Guy’s Cancer Charity. These are the fundraising and funding arms that support the provision of care and experiences for patients and staff at Guy’s and St Thomas’ NHS Foundation Trust, which raised a total of £7.8m this year.

I would like to take the opportunity to recognise the unending efforts of staff across Guy’s and St Thomas’ NHS Foundation Trust in providing exceptional healthcare while continuing to navigate the ongoing challenges of these unprecedented times. It has been an honour to have continued our support in prioritising the care and wellbeing of the team providing these essential services.

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Guy’s and St Thomas’ Foundation Annual Report and Financial Statements 2021/22

I am humbled, too, by the continued outpouring of support for the NHS from the public through donations in recognition of these efforts. We are extremely grateful for the generosity of those who supported our own fundraising efforts this year, at a time when, for many, personal resources are increasingly under strain.

Our 2022 to 2027 strategy is all about scaling further and wider. Our goal is to leverage insights from our practical, real-world work to demonstrate impact and influence change at a much broader level.

With challenging economic uncertainty looming globally, the continued impact of Covid-19 and multiple largescale health problems that need real solutions, we will need both determination and resilience to accomplish what we have set out to do.

I can state with absolute confidence that with the hard work, passion and devotion of our highly dedicated teams, our partners and our communities who we are privileged to have been given a chance to serve, we move to our next five years better informed, better equipped and with an exceptional approach that combines humility with great ambition as we strive in pursuit of our mission.

I would like to personally acknowledge the immense contribution from my predecessor, Wol Kolade, and welcome new Trustee, Susanne Given. Last but not the least, I thank our extraordinary team, my fellow Trustees and our partners who make our work possible.

Debu Purkayastha

Chair (September 2021 to present)

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Guy’s and St Thomas’ Foundation Annual Report and Financial Statements 2021/22

Message from our Chief Executive

This has been a year of growth, drive, and ambition as we expand our reach and impact in pursuit of better health for all. As a 500-year-old organisation, our challenge has been to respond to the moment at the same time as taking full advantage of our ability to think for the long-term.

The moment is a critical one as we begin to emerge from and navigate the long-lasting effects of the Covid-19 pandemic. Life expectancy in the UK is decreasing. The NHS is facing significant challenges. Poor health continues to hold our national economy back.

I am proud to say that as a foundation we’ve continued to rise to the challenge, making great strides across every area of the organisation this past year.

Through Impact on Urban Health, we are exploring scalable solutions to the biggest urban health challenges, such as childhood obesity, the effects of multiple long-term health conditions, children’s mental health and the health effects of air pollution. Alongside our increase of charitable expenditure, this year we supported over 171 initiatives, projects and communities through Impact on Urban Health charitable funding totalling over £23m.

Through launching our three new fundraising charities we are bringing renewed focus, strength and commitment to supporting the vital work of the NHS. We continued to prioritise patient care and supporting the dedicated staff at Guy’s and St Thomas’. Over the past year alone, we invested £2m in a staff psychological and spiritual care programme.

We are also leading the way as a responsible investor, continuing our journey towards deploying all our assets for health. Our investor engagement led to significant changes from some of the world’s biggest food retailers and manufacturers. We have played a key role in the development of SC1 – a vision for a life sciences hub in London with health equity at its heart. At the same time, our renewed impact investment strategy and increased impact investment allocation goes beyond that of any other UK charitable foundation.

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Guy’s and St Thomas’ Foundation Annual Report and Financial Statements 2021/22

To support these ambitions, we have grown our capabilities and are now operating at a larger scale as an organisation than ever before. Vital to this work has been attracting the broadest possible range of experience, skills and perspectives into our teams and to continue embedding the principles of diversity, equity and inclusion into everything we do. This is fundamental in helping us achieve our mission. While we’ve made strong progress, we also know we have more to do in our push to become a truly inclusive organisation.

Looking towards the long-term, this year we also developed our next five-year strategy. Our 2022 to 2027 strategy is all about reach. Its goal is to leverage insights from our practical, real-world work to influence change at a much wider level. This represents the second five years of a 30-year strategy – the first five years focused on testing how best to have impact, while the next five years aim to build the platforms for this impact at scale.

The Foundation could not achieve the impact it does without its people. I’d like to thank our remarkable staff team for delivering above and beyond in a constantly changing landscape, and our Trustees for their continued support and guidance on this vital work.

Kieron Boyle Chief Executive

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Guy's and StThomas' Foundation Annual Report and Financial Statements 20￿/22 Trustees. report Guy's & St Thomas, Foundation

Guy’s and St Thomas’ Foundation Annual Report and Financial Statements 2021/22

Strategic report

Achievements and performance

Priorities we set for the year

2021/22 was the final year of our first five-year strategy (2017 to 2022) and a year of great progress towards our goals. We worked on increasing our impact and influence, used our assets and resources to support our collective mission of investing in a healthier society, and set our endowment a dual mandate of achieving both health impact and attractive financial returns. Our progress against priorities and resulting achievements is set out in the contents of this report.

We remained focused on the following priorities:

Summary of achievements

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Guy’s and St Thomas’ Foundation Annual Report and Financial Statements 2021/22

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Guy’s and St Thomas’ Foundation Annual Report and Financial Statements 2021/22

Our future plans

Our 2022 to 2027 strategy is all about reach. Its goal is to leverage insights from our practical, real-world work to influence change on a much wider level.

This represents the second five years of a 30-year strategy. The first five years focused on testing how best to have impact, and building new methods, capabilities and partnerships – and our work is more data-informed, human-centred, experimental and replicable as a result. We also developed an approach that supports this way of working – combining humility with ambition, long-term thinking with agility and creativity, and open-mindedness with focus.

Over the next five years we aim to build the platforms that will enable us to achieve impact at scale. Our goal is to become more influential so we can leverage wider resources in support of our mission. We will also focus on our internal operations, particularly how we remain agile, invest in our people as an asset for our long-term mission, and embed principles of inclusion more deeply across our work.

The next 20 years of our strategy are aimed at reducing health inequalities on a national, then international, scale. Few organisations have achieved this goal. With the right partnerships, insights and values, we believe we can.

We have four corporate objectives that will underpin our work:

Explore our five-year strategy on our website

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Guy’s and St Thomas’ Foundation Annual Report and Financial Statements 2021/22

Financial review

Charitable expenditure

Overall direct charitable expenditure for 2021/22 was £37.6m: £8.6m higher than 2020/21.

Impact on Urban Health

Programmatic/Impact on Urban Health expenditure increased to £22.9m (2020/21: £17.6m) of which £3.4m relates to our established Childhood Obesity Programme, £4m to Multiple Long-Term Conditions (MLTCs), £4.1m to Health Effects of Air Pollution, £1.9m to Adolescent Mental Health (now Children’s Mental Health), and £9.5m to cross-programme and other urban health projects.

For the second consecutive year, the Foundation received unrestricted grant income of £2.7m, comprising unconditional awards of £1.7m from the South-East London Clinical Commissioning Group (CCG), and £0.5m and £0.4m in conditional awards from Wellcome Trust and Clean Air Fund respectively.

Fundraising charities

The largest recipient of funds continues to be our strategic partner, Guy’s and St Thomas’ NHS Foundation Trust. Expenditure as the charity for staff and patients at Guy’s and St Thomas’ and Evelina London hospitals and community services increased to £13.1m (2020/21: £10.9m).

Income generation

Income generated through fundraising, grant income and our endowment was as follows:

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Guy’s and St Thomas’ Foundation Annual Report and Financial Statements 2021/22

Endowment

The endowment’s net assets increased by £80.1m (2020/21: £171.7m) before the transfer of £30m (2020/21: £28.6m) which was released under the distribution rule to support charitable expenditure.

Direct investment management costs increased by £3.5m to £6.3m, due partly to one-off professional fees and other costs relating to property developments and partly to higher fees relating to the performance of financial investments in the prior year.

The net value of our endowment after the spending transfer increased by £50m to £931m. Over the five years since March 2017, the net value has grown from £693m to £931m while also releasing a total of £133m to support charitable expenditure.

Costs

Total staff costs increased to £7.9m (2020/21: £5.1m), reflecting the recruitment of additional staff required to deliver the Foundation’s ambitious strategy.

Other support costs increased to £3.6m (2020/21: £2.4m) as a result of the additional investment in systems and infrastructure required to support the Foundation’s increased levels of activity.

Financial position

The Foundation remains in an exceptionally strong financial position.

As at 31 March 2022, the Foundation had free reserves of £28.2m (31 March 2021: £38.3m), which are managed through a distribution account.

Financial key performance indicators (KPIs)

----- Start of picture text -----
Measure Key performance Key indications
Charitable commitments £22.9m against a forecast A successful fifth year of programmatic activity resulted
for Impact on Urban of £24.9m in 92% of forecast commitments being achieved, with
Health programmes a total value 30% higher than the previous year.
Funds raised £7.8m against a forecast An exceptional year of fundraising which saw voluntary
of £6.5m income reach 120% of target. Including pledged
income receivable in future years, the total new funds
raised was £13.8m.
Funds deployed as the £13.1m against a forecast Total spending on projects to benefit patients and
charity for Guy’s and St of £13.3m staff of Guy's and St Thomas' NHS Foundation
Thomas’ NHS Trust was in line with forecast and £2.2m or 20%
Foundation Trust higher than the previous year.
Return on the 12.8% return on Although the endowment performed well overall,
endowment compared to endowment for 2021/22 public equity and property lagged their respective
benchmark compared to benchmark indices. However annualised returns over the past
return of 16.4% three and five years continue to show significant
out performance against the benchmark.
----- End of picture text -----

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Guy’s and St Thomas’ Foundation Annual Report and Financial Statements 2021/22

Reserves policy

Over the course of the year our total unrestricted funds reduced from £68.8m to £60.6m, reflecting the expenditure of accumulated income from prior years. As at 31 March 2022, £32.4m of these funds were designated in the form of properties and other assets that are used in the provision of our charitable activities. The remaining £28.2m (2020/21: £38.3m) of free reserves are managed through a distribution account.

The Foundation plans the distribution of its unrestricted funds through a five-year budget, performance against which is reviewed annually. The budget is based on the distribution of all available resources projected to arise in the five-year period covered by the budget. For the five-year period that commenced on 1 April 2017, we spent £128m of the total available unrestricted resources of £153m.

The Foundation maintains the ability to transfer funds from the expendable endowment if necessary to meet its disbursement targets.

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Guy’s and St Thomas’ Foundation Annual Report and Financial Statements 2021/22

Our charitable expenditure in 2021/22 Total: £37,600,000

Impact on Urban Health programmes: £22,875,000

Charity for Guy’s and St Thomas’ NHS Foundation Trust: £13,065,000 (see below for breakdown of our charities) By priority Evelina London Children’s Charity: £1,600,000 Guy’s Cancer Charity: £2,300,000 Guy’s & St Thomas’ Charity: £4,100,000

Investing for Health: £1,500,000

Health Innovation Fund: £160,000

Guy’s and St Thomas’ NHS Foundation Trust: £11,925,000 Other NHS (Trusts, CCGs, GP practices etc): £955,000 Voluntary, community and social enterprises: £23,765,000 By recipient Commercial[*] : £125,000 Local authorities and other service providers: £20,000 Universities: £765,000 Other: £45,000

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Guy’s and St Thomas’ Foundation Annual Report and Financial Statements 2021/22

Five-year review: 2017/22 Total: £136,800,000

Impact on Urban Health programmes: £68,200,000

By priority

Charity for Guy’s and St Thomas’ NHS Foundation Trust: £60,600,000

Investing for Health: £1,500,000

Health Innovation Fund: £6,500,000

Guy’s and St Thomas’ NHS Foundation Trust: £57,200,000

Other NHS (Trusts, CCGs, GP practices etc): £2,200,000

Voluntary, community and social enterprises: £60,400,000

Commercial[*] : £4,300,000

By recipient

Local authorities and other service providers: £2,500,000

Universities: £5,700,000

Other: £4,500,000

Guy’s and St Thomas’ Foundation Annual Report and Financial Statements 2021/22

Our endowment

Our endowment and its ambition

Our endowment is one of our most powerful tools when it comes to driving our mission and creating positive change through our dual objectives of achieving financial returns and health impact. We use our assets to transform lives and demonstrate that investing in health is good business. This strategy allows us to take a long-term view while addressing the real and urgent health issues of today.

Our endowment performed well this year, generating a net return on equity of 12.8% and reaching over £1bn in gross assets. Over the past three and five years, average annual returns have exceeded the Foundation’s financial objective of UK RPI + 4%.

Endowment returns

Endowment returns Endowment returns
Annualised returns over:
1 year
3 years
5 years
Endowment return* 12.8%
11.3%
10.1%
UK RPI 9.0%
4.3%
3.7%
Benchmark ** 16.4%
10.1%
8.7%

Return on gross investment assets (GDP) *Composite Asset Class benchmark

Endowment performance vs RPI

----- Start of picture text -----
£1,000
£900
£800
£700
£600
£500
£400
£300
£200
£100
£0
2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022
Endowment NAV (net of spending)
Endowment NAV adjusted for UK RPI
Net asset value (£ m)
----- End of picture text -----

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Guy’s and St Thomas’ Foundation Annual Report and Financial Statements 2021/22

The increase in endowment net assets before transfers for the year was £80m (2020/21: £171.7m). A total of £30m (2020/21: £28.6m) was released under the distribution rule to support charitable expenditure.

Although the endowment performed well overall, it underperformed some asset class benchmarks during the year as key themes in the public equity portfolio retraced some of the prior years’ gains and property lagged behind a UK index boosted by pandemic-related gains for out-of-town logistics sites.

Performance summary: 1 April 2021 to 31 March 2022

----- Start of picture text -----
Allocation
Strategic Asset Strategic Asset as at 31 March 2022 Asset Class Benchmark Allocation as at
Asset Class Allocation Band (%) Allocation (%) (%) Performance (LC) Performance (LC) 31 March 2021 (%)
----- End of picture text -----
Cash 0-10 1 3.5 – 0.2% 1.7
Liquid Credit
and Private Debt		 0-12 5 3.5 11.1% -4.6% 3.8
Absolute Return 0-12 6 9.8 4.4% 2.4% 8.0
Hedged Equities 0-14 10 10.1 -5.6% -1.9% 13.6
Global Equities 17-35 23 16.9 -6.0% 8.8% 19.4
Private Equity 5-17 12 15.5 46.1% 37.0% 13.4
Composite Financial
Asset Class
Performance (local
currency)		 8.5% 9.5%
Property 30-50 40 39.5 11.3% 23.7% 39.4
Composite
Asset Class
Performance (local
currency)		 9.4% 14.5%
Currency
Gain or Loss		 2.2% 1.8%
Composite
Asset Class
Performance (GBP)		 11.6% 16.4%
Partners Capital Fees -0.1% –
Return on Gross
Investment Assets
(GBP)		 11.5% 16.4%
Impact of Leverage 1.3%
Return on
Endowment Equity
(GBP)		 12.8%

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Guy’s and St Thomas’ Foundation Annual Report and Financial Statements 2021/22

Our commitment to impact investment

Impact investment offers the potential for greater impact than through grant-making alone, by leveraging scale and different capital sources. Since 2018, we’ve been learning how to maximise impact investment to deliver on our health impact and financial goals. We’ve already built a £22m multi-sector, multi-asset portfolio that has delivered measurable impact alongside attractive financial returns. We’re confident that our model works and have updated our strategy to increase our capital allocation to impact investments from £22m to £100m by 2026, with a view to incorporating impact into our entire investment portfolio in the future.

Our revised strategy will also see us directing more capital from our endowment to catalytic investment opportunities. By investing in emerging yet potentially transformational ideas, we aim to pave the way for others to invest and help upscale our combined capacity to drive health impact.

A responsible property owner and partner

Across our property portfolio, we aim to be a responsible owner, investor and partner in developments, and to use our property assets to support our mission of health equity for all. Our property portfolio is valued at £400m. Most of our properties are based in the London boroughs of Lambeth and Southwark, though we also own significant agricultural holdings across the UK. This year we made good progress on embedding wellbeing into the heart of new property developments.

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Guy’s and St Thomas’ Foundation Annual Report and Financial Statements 2021/22

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Guy’s and St Thomas’ Foundation Annual Report and Financial Statements 2021/22

Influencing positive change

We strengthened our commitment to responsible investing for impact and used the power of our investor networks to make positive changes towards health equity.

Highlights include:

One of the ways we ensure our endowment delivers on its dual objectives is by influencing companies we’re invested in to have positive impact on health through their activities.

When we began our Healthy Markets programme in 2019, no retailers and very few manufacturers were disclosing the proportion of their sales that come from healthy foods. Today, eight out of 11 top UK retailers and five out of 12 top manufacturers are now reporting – or are committed to reporting – on the percentage of their sales (by revenue or product portfolio) that meet government definitions of healthy food. Moreover, six of the UK retailers targeted by Healthy Markets have pledged to increase their sales of healthy foods, compared to only two when the programme started.

Following extensive engagement, Tesco set new targets to increase their sales of healthy foods in the UK and Ireland from 58% in 2021 to 65% by 2025, and Unilever committed to reporting the healthiness of their sales against government definitions and to setting targets to increase these sales.

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Guy’s and St Thomas’ Foundation Annual Report and Financial Statements 2021/22

Arts and heritage collection

We are custodians of one of Europe’s largest collections of health-related arts and heritage – comprising around 4,500 works dating from 1500 – which we use to enhance healthcare settings. We are committed to understanding our heritage and its impact on our mission. Please see the section on diversity, equity and inclusion on page 30.

This year we grew our collection with the following:

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Guy’s and St Thomas’ Foundation Annual Report and Financial Statements 2021/22

Impact on Urban Health

This year, we continued to work towards our goal of unlocking the potential for cities to become healthier, committing £22.9m funding across 171 partnerships and projects.

All good health interventions start with a simple action: listening – and we continue to collaborate with the communities we serve to make sure our interventions work for them. In a challenging, ever-changing landscape we continued to question how to ensure our resources have the biggest impact when it comes to addressing health inequalities, both here in Lambeth and Southwark and beyond.

This goal means adapting and refining our strategy to respond to the context in which we work. We continue with our long-term programmatic approach, focused on the big challenges of health equity in urban areas – work that’s centred in Lambeth and Southwark – and on increasing our impact in four new areas:

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Guy’s and St Thomas’ Foundation Annual Report and Financial Statements 2021/22

Health Effects of Air Pollution

Our Health Effects of Air Pollution Programme aims to find equitable solutions to poor air quality.

This year we continued to work with businesses, communities and government to reduce the harmful effects of air pollution on those who are most susceptible.

In total, we provided £4.1m to test air quality improvement solutions. Highlights include:

“ In the past year, support from Impact on Urban Health has helped us reach over 600m people with clean air messaging, engage with over 800 members of the public and amplify the voices of communities being ” affected by toxic air across the UK.

Henry Gregg, Director of External Affairs, Asthma + Lung UK

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Guy’s and St Thomas’ Foundation Annual Report and Financial Statements 2021/22

Children’s Mental Health Programme

Our Children’s Mental Health Programme aims to make it possible for all children to have strong, positive mental health, by tackling the inequalities many families face when young people experience behavioural difficulties.

As our Children’s Mental Health Programme is our newest initiative, we spent much of this year gathering research data and insights alongside local partners and building relationships with community-led organisations already supporting families in Lambeth and Southwark.

In total, we invested £1.9m in local partners and building our evidence base. Highlights include:

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Guy’s and St Thomas’ Foundation Annual Report and Financial Statements 2021/22

Multiple Long-Term Conditions Programme

Our Multiple Long-Term Conditions Programme aims to address poor health by improving the building blocks of a healthy life – our homes, work and finances.

During the Covid-19 pandemic, the programme provided emergency support for local people and organisations. This year we supported communities and projects working to combat the unfair health burden on people most at risk of financial insecurity.

In total, we supported communities and projects with £4m. Highlights include:

“ We know financial problems have a negative impact on health and vice versa. The support Financial Shield provides could make all the difference to people’s situation, stress levels and, in turn, health and wellbeing.”

Sangeeta Leahy, Director of Public Health for Southwark Council

Childhood Obesity Programme

Our Childhood Obesity Programme aims to break the link between low income and poor nutrition, by improving the quality of food options in lower-income neighbourhoods.

This year we continued to shape and respond to policy developments affecting children’s health, particularly the National Food Strategy and the government’s response.

In total, we invested £3.4m in communities and projects that are in line with our goals. Highlights include:

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Guy’s and St Thomas’ Foundation Annual Report and Financial Statements 2021/22

Research and development

Our research and development team drives innovation by creating future-thinking, coordinated activities that support our drive for health equity in urban areas, while identifying the programmes of the future. This includes exploring issues such as trust, systemic inequalities in health systems and health equity, community engagement and empowerment, innovative funding practices, digital inclusion, and more.

In total, we supported communities and projects with £9.5m. Highlights include:

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Guy’s and St Thomas’ Foundation Annual Report and Financial Statements 2021/22

Our three charities: Evelina London Children’s Charity, Guy’s Cancer Charity, Guy’s & St Thomas’ Charity

At the end of 2021, we launched three new fundraising charities to represent our work as the charity for the patients and staff of Guy’s, St Thomas’, Guy’s Cancer, and Evelina London hospitals and community services.

Evelina London Children’s Charity, Guy’s Cancer Charity and a new Guy’s & St Thomas’ Charity were created to individually represent the fundraising and funding priorities of children, cancer and unrestricted donations to support impact across the NHS Foundation Trust. Creating this distinction from our work as a funder in Lambeth and Southwark enables us to better connect with patients, their families and staff to increase income to help Guy’s and St Thomas’ go beyond what the NHS can provide.

Guy’s & St Thomas’ Charity

Guy’s & St Thomas’ Charity exists to support the incredible NHS staff and exceptional healthcare provided by Guy’s and St Thomas’.

Thanks to our supporters’ donations, we funded a £350,000* project that’s transforming the experience of patients being treated in intensive care. The ICU Survivorship Programme provides access to specialist care and support, equipping patients with the tools they need to return to everyday life.

We also collaborated with NHS Charities Together and four other NHS charities to fund a £630,000 Long Covid project, co-designed with patients, that will create a new blueprint for care.

Finally, we invested £2m in a staff psychological and spiritual care programme to help the dedicated teams at Guy’s and St Thomas’ recover from the pandemic. Staff from backgrounds disproportionately affected by the pandemic will also have access to dedicated psychologists, providing accessible and culturally relevant care.

“ At Guy’s and St Thomas’ there is a real investment in staff health, in a way that’s different to other hospitals. It’s absolutely central to their wellbeing.”

Dr Raselle Miller, Lead Clinical Psychologist

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Guy’s and St Thomas’ Foundation Annual Report and Financial Statements 2021/22

Guy’s Cancer Charity

Guy’s Cancer Charity supports Guy’s Cancer to transform cancer care through the very latest developments in personalised care.

Donations totalling £6m funded the opening of Guy’s Head and Neck Cancer Centre in July 2021, with the aim of speeding up detection and diagnosis, enhancing treatments, minimising the impact of side-effects, and reducing the recurrence of cancer.

Head and neck cancer is already one of the world’s most common cancers, with 12,000 people diagnosed in the UK every year. This is increasing all the time, and people are being diagnosed younger.

Thanks to the generosity of our supporters, we’re able to fund the head and neck cancer team’s vital work, so more people can access pioneering, personalised care and support tailored to their needs.

“ Investment can make a significant difference in the area of head and neck cancer. Every stride we make ” could have ripple effects for other cancers, too.

Dr Teresa Guerrero Urbano, Consultant Clinical Oncologist

Evelina London Children’s Charity

Through Evelina London Children’s Charity, we help Evelina London provide compassionate, trailblazing care for children and young people and their families.

Over the past year, supporters of Evelina London Children’s Charity have helped the Evelina London team provide care for their most vulnerable patients, even while on the move. Donations of £47,000 have funded three specialist incubators so even the smallest and most vulnerable babies can be safely transported.

Donations of £75,000 also contributed to the paediatric and fetal cardiology team at Evelina London developing a virtual reality (VR) system that lets them ‘walk through’ the scan of a patient’s heart, allowing them to investigate and treat even the most complex heart problems in babies and children.

The children at Evelina London have also benefited from VR technology, with donations of £12,000* funding special headsets that enable them to walk with dinosaurs, swim with turtles or explore outer space, helping to ease anxiety while receiving treatment.

“ Evelina London has treated and supported me throughout most of my life and has become my second home.”

Izzie Everest, patient at Evelina London

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Guy’s and St Thomas’ Foundation Annual Report and Financial Statements 2021/22

Diversity, equity and inclusion

We continue to push forward to embed diversity, equity and inclusion (DEI) into everything we do as a charitable foundation – from the way we train our staff and Trustees to the way we communicate with our stakeholders and conduct our partnerships with external organisations.

We have developed three strategic objectives to help measure our progress towards achieving our diversity, equity and inclusion goals. These objectives are linked to the Association of Charitable Foundations’ nine pillars of good practice:

This year, progress towards our objectives includes:

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Guy’s and St Thomas’ Foundation Annual Report and Financial Statements 2021/22

Principal risks and their management

We need to take risks in order to achieve our charitable and other goals. Effective risk management ensures we are identifying risks, mitigating them to the appropriate extent and ensuring they can be properly scrutinised within our governance processes.

We have appropriate procedures and controls in place to achieve this. At a high level these include:

We have recently introduced a new risk management policy appropriate for our increased size and complexity which takes a more delegated approach to risk management, ensuring strategic risk continues to sit with Trustees while operational risk is devolved into our business areas. All risks are reviewed to an appropriate schedule and escalated to Trustees where necessary.

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Guy’s and St Thomas’ Foundation Annual Report and Financial Statements 2021/22

Strategic risks

We define a strategic risk as one that would pose a threat to our ability to set and/ or execute our overall strategy. Usually these risks relate to strategic decisions or objectives set by the Trustees, and are those most likely to have a long-term impact. These risks are managed at Trustee level, with regular review by our Executive Team, Finance and Audit Committee and Board of Trustees. Below is a summary of the various risks, followed by a brief summary of our approach to mitigate those risks.

Funding and programmatic work

Likelihood of significant public sector fiscal retrenchment, including potentially for the NHS.

Our Board of Trustees and wider team are monitoring this risk, including the possibility that it becomes the ‘new normal’.

Cost of living challenges cause deterioration in the health issues we work on.

We are monitoring for emerging trends. We manage this as both a risk and an influencing opportunity as it has the potential to push health equity higher up stakeholders’ agendas.

A weak economy compromises delivery as partners struggle with operational costs/ income shortfalls.

We work closely with partners on ongoing financial challenges, providing targeted support to key strategic partners where necessary.

Fundraising for our charities

These risks are being mitigated by developing a new charities strategy with Guy’s and St Thomas’ NHS Foundation Trust, with the participation of King’s College London, in which we will have better joint visibility and alignment.

A lack of alignment between the between the Foundation, King’s College London and Guy’s and St Thomas’ NHS Foundation Trust hampers the ability of the charities to meet our income growth ambitions.

We have regular formal review points to monitor performance against annual fundraising plans, maintain open lines of communication and regularly review areas of operational risk together.

Uncertainties around key partners’ investment planning may impact on our ability to forecast and plan our fundraising activity.

We regularly check in with key partners on capital planning, including quarterly meetings with the Guy’s and St Thomas’ NHS Foundation Trust’s Executive Team.

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Guy’s and St Thomas’ Foundation Annual Report and Financial Statements 2021/22

Further waves of the Covid-19 pandemic (or another comparable medical emergency) impact on the Trust’s ability to engage on long-term strategic questions and our ability to reinvigorate our public fundraising activities.

Our close collaboration with the Trust – and what we’ve learnt over the past two years – should reduce the potential impact of this risk.

Communications

Our increased influencing activity draws greater scrutiny or a perception that we are politicised, limiting our range of partners.

We review all work in line with our charitable objects, clearly articulate our political neutrality, regularly review crisis communications plans and only rarely undertake political activity and/or campaigning (as defined by the Charity Commission) that supports the furtherance of our objects, and then in line with Charity Commission guidance.

Through our endowment, we engage with corporates to persuade them to make health impact a part of their strategy. To achieve this, we hold investments in these corporates. This could appear to conflict with our programme activities and approaches, leading to negative impact on our reputation.

We ensure our investing teams have a full understanding of our mission and are aware of our programmatic work, and that they ensure our investing is in line with clear ethical principles.

Endowment

Responsible, ESG, climate and impact investments do not deliver expected financial returns.

We focus significant resource on sourcing the highest quality investments with attractive returns.

Property development opportunities/transactions are delayed or do not deliver expected benefits.

We include contingency in all planning that relies on returns from property development and spend time in diligence on our partners.

Lower returns on our endowment over the next 10 years, due to high asset valuations and/or market downturn.

We are altering our strategic asset allocation and portfolio management, and increasing stress testing to mitigate this risk.

High inflation reduces the real returns and real value of our endowment.

High property allocation reduces this impact, and we are adjusting security portfolios accordingly.

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Guy’s and St Thomas’ Foundation Annual Report and Financial Statements 2021/22

Cross-cutting

Culture diverges across our charities and business areas, making it harder for us to collaborate and live our values.

We are creating regular opportunities to talk about our culture and for staff to engage across teams, and have recruited an internal comms team to support these endeavours.

Our commitment to better understanding the link between our heritage and mission – including the sources of our endowment – is politicised, impacting key relationships or the organisation’s ability to operate.

We are committed to exploring and understanding our heritage and what it means for our mission, and have clear crisis communication plans, and lines of communication with stakeholders.

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Guy’s and St Thomas’ Foundation Annual Report and Financial Statements 2021/22

Operational risks

Operational risks are those that affect our delivery against strategy and are often more time-bound than strategic risks. As we grow as an organisation – and our operations grow in complexity – we increasingly manage a large portfolio of operational risks across all business areas. These include:

Operational risks are managed at a business area level, and the Executive Team manage cross-cutting risks. They are regularly reviewed by our operations group and/or the Executive Team depending on the level of risk, and by the Finance and Audit Committee. They will be escalated to the Board when necessary.

Structure, governance and management

Guy’s and St Thomas’ Foundation (formerly known as Guy’s & St Thomas’ Charity) is an independent charitable company, registered with the Charity Commission for England and Wales, with charity number 1160316. The Foundation is registered at Companies House as a company limited by guarantee, with number 9341980. Our registered office is The Grain House, 46 Loman Street, London SE1 0EH.

The Foundation is the Trustee of Guy’s and St Thomas’ Endowed Charity and a number of other linked charities. Unrestricted funds – and those restricted funds that are not separate charities linked to us – are part of the charitable company.

The object of Guy’s and St Thomas’ Foundation is any charitable purpose or purposes relating to the general or specific purposes of the Guy’s and St Thomas’ NHS Foundation Trust or the purposes of the health service (as described in section 1 of the NHS Act 2006 or any statutory modification of that section).

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Guy’s and St Thomas’ Foundation Annual Report and Financial Statements 2021/22

Funding policy

We work with many partners, funding projects and initiatives that are able to make a positive contribution to our strategic goals, and which are in line with our charitable objects. All spend is reviewed by the Foundation against our criteria for quality and value for money. Ongoing projects are monitored to ensure they are achieving their milestones and are formally evaluated.

Appointment of Trustees

Since our reconstitution on 1 April 2015, Trustee appointments are made by the Trustees after open advertisement and work with executive recruitment firms. Guy’s and St Thomas’ NHS Foundation Trust has the right to appoint and remove one Foundation Trustee. Trustees are given a thorough induction to the Foundation and its staff and operations when they join our Board, and training needs are also addressed.

Trustee changes

Wol Kolade (Chair of the Foundation’s Board) stepped down on 31 August 2021. Debu Purkayastha joined the Board as Chair on 1 September 2021. Susanne Given joined the Board on 21 October 2021.

Powers of investment

The Foundation’s powers of investment in its own right are principally derived from its Articles of Association and the Companies Act 2006. In exercising these powers, the Trustees must act in accordance with their duties as Foundation Trustees and as company directors as set out in the Charities Act 2011, the Charities (Protection and Social Investment) Act 2016, Charities Act 2022 and the Companies Act 2006 and as derived from case law.

The Foundation’s powers of investment in its capacity as corporate Trustee of the Guy’s and St Thomas’ Endowed Charity and the other linked charities are principally derived from the revised Scheme approved by the Charity Commission in 2015 and the Trustee Act 2000. In exercising these powers, the Foundation must act in accordance with its duties as set out in the Scheme and the Trustee Act 2000.

In each case, these powers of investment are wide, allowing the Trustees and the Foundation in its capacity as corporate Trustee of the Endowed Foundation and the other linked charities to invest in such stocks, funds, shares, securities or other investments as they see fit.

Fundraising

The Foundation’s fundraising activities have been undertaken by King’s College London (King’s) since 2012. We have a contract with King’s to cover these activities. King’s reports regularly to the Foundation on fundraising activities, income, other key performance

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indicators and any issues arising, including complaints. These reports are discussed with King’s and at the Foundation’s Fundraising Leadership Group which includes representatives from the Foundation, Trust and King’s.

The Foundation and King’s are both registered with the Fundraising Regulator and seek to abide by best fundraising practice.

The Foundation keeps abreast of sub-contractors used by King’s for fundraising activities and King’s actively monitors them.

The Foundation’s fundraising team received 16 complaints/instances of negative feedback during the year, 10 of which related specifically to our fundraising activities. The Foundation and King’s take all such complaints seriously, and responded appropriately to issues raised.

The Foundation takes seriously the protection of vulnerable people and other members of the public from inappropriate fundraising behaviour.

Public benefit

The Trustees confirm that they have complied with the duty in section 4 of the Charities Act 2011 and that they have considered the Charity Commission’s guidance on public benefit in shaping the Foundation’s objectives and planning future activities.

The Trustees are conscious of the need to ensure that the activities of the Foundation comply with the public benefit requirement, and they believe that all the charitable activities – most of which are described in this report – are for the public benefit.

Diversity, equity and inclusion within our team

To succeed as a Foundation, we need to draw on the broadest possible range of perspectives, expertise and talents.

Of the 110 people in the Foundation on 31 March 2022, 65% were female (2020/21: 69%), 24% were male (2020/21: 29%) and 11% preferred not to say. Our Executive Team was one third female and two thirds male.

On 31 March 2022, approximately 30% of employees were Black or from other minoritised ethnic groups, while five (55%) of our Trustees were female and 36% came from Black or other minoritised ethnic groups.

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Guy’s and St Thomas’ Foundation Annual Report and Financial Statements 2021/22

Reporting on our pay gap

Across our organisation, we look at both gender and ethnicity pay gaps and publish this data annually as part of our commitment to being transparent and in our role as a foundation addressing health inequalities.

----- Start of picture text -----
Male Female Gap Gap
Measure Number percent Number percent mean median
Upper quartile 8 8% 17 17% 41% 18%
Upper middle quartile 4 4% 23 23% -3% -1%
Lower middle quartile 9 9% 19 19% 1% 0%
Lower quartile 5 5% 13 13% 12% 17%
All staff 26 26% 72 72% 22% -3%
----- End of picture text -----

As at 31 March 2022, our median gender pay gap was -3% compared to 0% in the previous year.

Our ethnicity pay gap shows no significant structural gap, with a median gap of 4% compared to -1% in the previous year.

Remuneration

The governing principles of the Foundation’s remuneration policy are to set pay levels that:

These principles apply to all staff, including senior executives. The table below details staff compensation by salary band. It covers staff who were on payroll on 31 March 2022, and shows full-time equivalent pay for ease of comparison. An alternative, more detailed breakdown of the remuneration of senior employees based on actual payments made appears in section 8 of the notes to the financial statements .

Salary band for staff as at 31 March 2022

Salary band Number of staff
£20,000–£60,000 73
£60,000–£100,000 22
£100,000–£150,000 7
Over £150,000 2

All staff employed before 1 April 2022 were awarded a general pay increase of 4% on 1 April 2022, with an additional 2% increase for all staff whose salaries, on 31 March 2022, were lower than £50,271.

The Foundation has been certified as a London Living Wage employer since 2016/17.

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Guy’s and St Thomas’ Foundation Annual Report and Financial Statements 2021/22

Our commitment to the environment

As an independent foundation focused on building a healthier society, we believe in committing to bold action to address climate change and are committed to reaching net zero greenhouse gas emissions by 2050.

We have made the following climate commitments:

We are working to better understand the link between climate change and our health equity mission, initially by looking at opportunities for research and projects that could benefit both the climate and health through our four programmes at Impact on Urban Health.

We are taking further steps to understand and measure our climate impact and have begun work on reviewing our practices and policies.

Find out more about our actions on climate on our website.

Streamlined Energy and Carbon Reporting (SECR)

We report in line with the Streamlined Energy and Carbon Reporting (SECR) guidance for the period covering 1 April 2021 to 31 March 2022, which considers an operational control approach for all our properties and land. See appendix on page 88 for our report and methodology.

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Guy’s and St Thomas’ Foundation Annual Report and Financial Statements 2021/22

Trustees’ responsibilities

Responsibilities of the Board

The Trustees (who are also directors and members of Guy’s and St Thomas’ Foundation for the purposes of company law) are responsible for preparing the Trustees’ annual report and the financial statements in accordance with applicable law and regulations. Company law requires the Board to prepare financial statements for each financial year, which give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period.

In preparing these financial statements, the Board are required to:

The Board are responsible for keeping proper accounting records that disclose, with reasonable accuracy at any time, the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006, Accounting Standards and Statements of Recommended Practice and the regulations under the Charities Act 2011. They are also responsible for safeguarding the assets of the company and for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Trustees of Guy’s and St Thomas’ Foundation – as those of all UK charitable companies – must also act in accordance with a set of general duties. These duties are detailed in section 172 of the UK Companies Act 2006, which is summarised as follows:

A Trustee of a charitable company must act in the way they consider, in good faith, would be most likely to promote the success of the charity’s charitable objects and, in doing so have regard (among other matters) to the:

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Guy’s and St Thomas’ Foundation Annual Report and Financial Statements 2021/22

Statement of disclosure to the auditor

So far as the Board of Trustees are aware: there is no relevant audit information of which the charity’s auditors are unaware.

The Trustees have taken all necessary steps to make themselves aware of any relevant audit information and to establish that the Foundation’s auditors are aware of that information.

Auditors

Moore Kingston Smith LLP were appointed as auditors during the previous year and are deemed to be re-appointed under Section 487(2) of the Companies Act 2006.

The Trustees’ annual report is approved by the Trustees of the Foundation. The strategic report, which forms part of the annual report, is approved by the Trustees in their capacity as directors in company law of the Foundation.

By order of the Board of Trustees:

Paul Brown

28 September 2022

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Guy’s and St Thomas’ Foundation Annual Report and Financial Statements 2021/22

Organisation

Our Executive Team

Kieron Boyle , Chief Executive

Catherine Cullen , Executive Director of Communications and Engagement (job share) Ethan Hall , Chief Investment Officer

Barbara Kasumu , Executive Director of Charities

Moray McConnachie , Executive Director of Operations

Andy Ratcliffe , Executive Director of Programmes

Gayle Willis , Executive Director of Communications and Engagement (job share) Ethan Hall joined the Foundation on 10 May 2021 and Barbara Kasumu joined in September 2022.

Details of our Executive Team and a full list of staff members are available on our website.

Our Trustee Board

Debu Purkayastha is chair of our Board of Trustees and a renowned global investment leader and entrepreneur. Currently Managing Partner of venture capital and private equity firm, 3rd Eye, he holds several non-executive positions including at University of Cambridge/ Cambridge Enterprise, University Hospitals Birmingham NHS Foundation Trust, and previously at global humanitarian NGO Mercy Corps. Debu spent almost six years at Google before becoming Entrepreneur-in-Residence at Octopus Investments. He sits on our People Committee and Investment Committee.

Sally Tennant OBE has many years of experience in the banking and investment sectors. She founded Acorn Capital Advisers – an independent wealth adviser – after serving as Chief Executive of Kleinwort Benson from 2011 to 2014. Sally was previously Chief Executive of Lombard Odier (UK) Ltd, after four years as Chief Executive of Schroders Private Banking. As well as being vice-chair of our Board of Trustees, Sally chairs our Childhood Obesity Programme Committee and sits on our Finance and Audit Committee, Investment Committee and People Committee. Sally is the Trustee diversity, equity and inclusion lead.

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Guy’s and St Thomas’ Foundation Annual Report and Financial Statements 2021/22

Sir Ron Kerr was appointed Council of King’s College London and Chair of NHS Providers in 2019. Prior to this, he joined Guy’s and St Thomas’ NHS Foundation Trust as Chief Executive in 2007. He stepped down in October 2015 after 30 years in senior NHS leadership roles, remaining with the Trust as Executive Vice Chair. Other Chief Executive roles have included the National Care Standards Commission, United Bristol Healthcare NHS Trust and the South East London Commissioning Agency.

Tom Joy is Director of Investments at Church Commissioners for England. He began his career as a graduate trainee at Royal Sun Alliance Investment Management before joining Schroders where he held a variety of different roles, culminating as Head of Investment – Multi-Manager. He then joined RMB Asset Management as Chief Investment Officer. Tom chairs our Investment Committee and sits on our People Committee.

Paul Brown is CEO of MusicBird AG, a Switzerland-based company building a portfolio of world-class music rights and innovating in rights acquisition, management and portfolio monetisation. He is an experienced media and technology executive, having previously held leadership positions at The Walt Disney Company EMEA – where he was Senior Vice President of Interactive and Direct to Consumer divisions – Spotify, Pandora and Sony Music. Paul chairs our Finance and Audit Committee and Health Effects of Air Pollution Programme Committee.

Helen Bailey is Chief Executive of the London Borough of Sutton. She is an experienced public sector leader who has worked in local government, for the Mayor of London and in HM Treasury. She has also provided strategic consultancy and advice as a consultant and is involved in two not-for-profit organisations that concern themselves with public sector leadership. Helen takes a particular interest in our work on children’s mental health and is a member of our Finance and Audit Committee. She is also a resident of Lambeth.

Yasemin Saltuk Lamy is MD, Head of Asset Allocation and Capital Solutions for British International Investment plc. She previously covered Digital Identity and Innovation at Omidyar Network and had several roles at J.P. Morgan in London across derivatives and impact investing. Yasemin earned a Master of Science with merit in financial mathematics from King’s College London. She chairs our Impact Investment Committee and sits on our Investment Committee.

Katherine Ward is Chief Commercial Officer and Managing Director, UK and Europe, for Healthy.io – a digital healthcare startup. She has worked in healthcare for 26 years: 15 years in the NHS in both provider and payer roles and 11 years with UnitedHealth Group, where she was Chief Executive of UnitedHealth UK and, later, Chief Growth Officer for Optum International. Katherine chairs our Children’s Mental Health Programme Committee and sits on our People Committee.

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Guy’s and St Thomas’ Foundation Annual Report and Financial Statements 2021/22

Dr Danny Sriskandarajah joined Oxfam GB as Chief Executive in January 2019. Prior to this he held leadership roles at CIVICUS – the global civil society alliance – the Royal Commonwealth Society, the Commonwealth Foundation and the Institute for Public Policy Research. He holds a Masters and Doctorate from Oxford University and an undergraduate degree from the University of Sydney, and is a Trustee of the Disasters Emergency Committee. Danny chairs our Multiple Long-Term Conditions Programme Committee.

Dr Nikki Kanani, a respected leader in health, joined us as a Trustee in February 2021. She is a practising GP in South East London and, in 2018, became the first woman to be appointed Medical Director for Primary Care for NHS England and NHS Improvement. Prior to joining NHS England as Deputy Medical Director of Primary Care, she was Chief Clinical Officer of NHS Bexley Clinical Commissioning Group (CCG). She currently sits on The King’s Fund General Advisory Group.

Susanne Given is a leading nonexecutive director specialising in digital organisational growth. She has 20+ years of experience working for fast-growing digital businesses and recognised leaders in retail, such as John Lewis, Harrods and Superdry, and currently chairs online furniture retailer MADE.com and digital fashion brand HUSH UK. Susanne formerly held non-executive roles at Morrisons, Push Doctor and Deloitte. She sits on our People Committee, Investment Committee and Finance and Audit Committee.

Company Secretary

Hazel Peck is an English qualified solicitor and chartered company secretary. Prior to joining the Foundation, Hazel trained, and spent a number of years as an associate at, Hogan Lovells International LLP, a leading global corporate law firm, where she specialised in corporate finance and social enterprise. Following that, she specialised in social investment as senior legal advisor at Big Society Capital. Hazel sits on the UK regional board of the Global Alliance of Impact Lawyers and is a Trustee of Londonbased children’s charity KEEN London.

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Guy’s and St Thomas’ Foundation Annual Report and Financial Statements 2021/22

Committees

We have a number of committees that report to the Board, and funding committees that advise the Board on charitable expenditure. Each committee is made up of experts in their respective fields.

Funding decisions related to our programmes are made either by the Board of Trustees (if over £2m or otherwise advised by the relevant committee), the Executive Investment Committee (if up to £2m) or the Chief Executive under delegated authority (if under £100,000).

Funding decisions in respect of our work with the Trust are made by either the Board of Trustees (for amounts above £2m) or the Charities Oversight Group (for amounts up to £2m) alongside a check on strategic alignment by the Charities Strategy Committee. Funding decisions of up to £500,000 can also be taken by the Evelina London, Cancer and Charitable Fund Committees under delegated authority from the Board.

Board Committees

Investment Committee

This committee takes responsibility for investment strategy and management of the Foundation’s non-programme-related assets and the investment of the assets of the Endowed Charity, which are held by the Foundation as sole corporate Trustee. It reports to the Board of Trustees.

The Investment Committee has two sub-committees:

Impact Investment Committee

This committee is responsible for overseeing and guiding our initiative to build a portfolio of funds that generate both risk-adjusted financial returns and health benefits in the UK. It reports to the Investment Committee, approves investments up to and including £10m and recommends funds to the Investment Committee for approval above that level.

Property Committee

This committee is responsible for overseeing and guiding our major property projects. It can approve certain activities up to agreed thresholds and reports to the Investment Committee. For activities above the agreed thresholds, the committee makes recommendations to the Investment Committee for approval.

Finance and Audit Committee

This committee takes responsibility for overseeing financial governance and all matters relating to internal and external audit, oversees the maintenance of an effective system of internal financial controls, management reporting and risk management, and advises the Board on governance arrangements. It reports to the Board of Trustees.

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Guy’s and St Thomas’ Foundation Annual Report and Financial Statements 2021/22

People Committee

This committee develops policy on staff remuneration, approves overall spending on staff remuneration and benefits and monitors board composition. It also approves senior executive remuneration and terms of employment of the Chief Executive, and considers succession planning and recruitment to senior management positions and Trustee positions. It reports to the Board of Trustees.

Charities Strategy Committee

This committee, operating under delegated authority from the Board, is responsible for setting the strategic direction of fundraising and fund spending, providing long-term strategic advice on all work with the Trust and NHS influencing work, and considering the strategic fit of funding and fundraising projects with a value of over £2m.

Impact on Urban Health Committee

This committee, operating under delegated authority from the Board, is responsible for providing strategic oversight and guidance to Impact on Urban Health (the programmatic area of the Foundation’s activities). The committee advises on strategic direction for cross-programmatic learning, reviews the progression of our programmes and, if appropriate, recommends for approval the funding of Impact on Urban Health proposals above £2m.

Executive Committees

Executive Investment Committee

This committee, operating under delegated authority from the Board, is responsible for the Foundation’s activities as an independent health foundation, including spending decisions on programmatic work of up to (and including) £2m.

Charities Oversight Group

This group, operating under delegated authority from the Board, is responsible for funding and fundraising decisions of up to (and including) £2m relating to the Trust and delegating certain funding decisions – currently to the Trust committees, which are in the process of being reformed as the Evelina London Children’s Charity, Guy’s Cancer Charity and Guy’s & St Thomas’ Charity Expert Groups, as well as to Special Purpose Fundholders’ and the Foundation’s Chief Executive, respectively, and to take decisions on support for the Trust in response to unforeseen needs up to and including a value of £2m.

Programme Advisory Committees

Childhood Obesity Programme Committee

This committee provides unique perspectives to our Childhood Obesity Programme. It includes members from social enterprise, schools, public health, corporate and philanthropic backgrounds, all with experience of working to support children and young people.

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Guy’s and St Thomas’ Foundation Annual Report and Financial Statements 2021/22

Multiple Long-Term Conditions Programme Committee

This committee challenges and advises us on how to maximise impact, capture insights and effectively influence on this complex issue through our new programme of activity. Expertise is drawn from the NHS, community, commercial and social enterprise sectors, in the areas of long-term condition management, community development, public health, clinical commissioning, digital health and population health management.

Health Effects of Air Pollution Programme Committee

This committee provides expert advice and strategic guidance to our Health Effects of Air Pollution Programme. The committee supports us in exploring key strategic questions and brings knowledge and insights from other projects and programmes, both nationally and internationally. It includes expertise in air pollution, the health conditions associated with air pollution, campaigning and behavioural science.

Children’s Mental Health Programme Committee

We are currently exploring different approaches to developing our Children’s Mental Health Programme Committee later this year. We began by inviting 18 experts from the NHS, local government, mental health research, schools and communities in Lambeth and Southwark to an informal roundtable in March 2021.

Trust Committees

Evelina Children’s Fund Committee

This committee meets regularly during the year and is responsible for considering applications for funding from the Evelina Children’s Fund.

Cancer Funds Committee

This committee meets regularly during the year and is responsible for overseeing Special Purpose Funds benefiting cancer services and considering applications for funding to improve cancer care at Guy’s and St Thomas’ NHS Foundation Trust.

The Charitable Fund Committee

This committee meets regularly during the year and awards grants to improve patient care and experience and to support staff across Guy’s and St Thomas’ NHS Foundation Trust.

The Samaritan Fund Committee

This committee oversees strategy and spend for the Samaritan Special Purpose Fund, which exists to support vulnerable patients of Guy’s and St Thomas’ NHS Foundation Trust including those in financial need.

In each case, applications to these committees are considered in light of the strategic direction set by the Charities Strategy Committee. Any applications for funding or proposals for fundraising above £500,000 are escalated for approval to the Charities Oversight Group.

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Guy’s and St Thomas’ Foundation Annual Report and Financial Statements 2021/22

Advisors

Auditors (statutory)

Moore Kingston Smith LLP, Devonshire House, 9 Appold Street, London EC2A 2AP

Auditors (internal)

KPMG LLP, 15 Canada Square, Canary Wharf, London E14 5GL

Bankers

NatWest, 91 Westminster Bridge Road, London SE1 7HT

Insurance brokers

Brunel Insurance Brokers, 40 Lime Street, London EC3M 7AW

Investment advisors

Partners Capital LLP, 5 Young Street, London W8 5EH

Property advisers

Savills, 33 Margaret Street, Marylebone, London W1G 0JD

Property managers

Savills, Wytham Court, 11 West Way, Oxford OX2 0QL Allsop Letting and Management, City House, New Station Street, Leeds LS1 4JB CRM Students Ltd, Hanborough House, Wallbrook Court, North Hinksey Lane, Botley, Oxfordshire OX2 0QS

Lambert Smith Hampton, UK House, 180 Oxford Street, London W1D 1NN

Lawyers (charity and general legal support)

Withers LLP, 20 Old Bailey, London EC4M 7AN Stone King LLP, Upper Borough Court, Bath BA1 1RG

Lawyers (property)

Macfarlanes LLP, 20 Cursitor Street, Holborn, London EC4A 1LT Burgess Salmon, One Glass Wharf, Bristol BS2 0ZX

Others

Newcomen Collett Foundation

The Foundation has the right to nominate a representative governor to serve on the Newcomen Collett Foundation Board of Trustees.

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Guy's and StThomas' Foundation Annual Report and Financial Statements 20￿/22 Auditor's report and financial statements Guy's & St Thomas, Foundation 49

Guy’s and St Thomas’ Foundation Annual Report and Financial Statements 2021/22

Independent auditor’s report to the members and Trustees of Guy’s and St Thomas’ Foundation

Opinion

We have audited the financial statements of Guy’s and St Thomas’ Foundation (the ‘parent charitable company’) and its subsidiaries (the ‘group’) for the year ended 31 March 2022 which comprise the Group Statement of Financial Activities, the Group Summary Income and Expenditure Account, the Group and Parent Charitable Company Balance Sheets, the Group Cash Flow Statement and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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

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Guy’s and St Thomas’ Foundation Annual Report and Financial Statements 2021/22

Conclusions relating to going concern

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

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group’s and parent charitable company’s ability to continue as a going concern for a period of at least 12 months from when the financial statements are authorised for issue.

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

Other information

The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The Trustees are responsible for the other information contained in the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

The information given in the strategic report and the Trustees’ annual report for the financial year for which the financial statements are prepared is consistent with the financial statements.

The strategic report and the Trustees’ annual report have been prepared in accordance with applicable legal requirements.

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Guy’s and St Thomas’ Foundation Annual Report and Financial Statements 2021/22

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and parent charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the Trustees’ annual report.

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

Responsibilities of Trustees

As explained more fully in the Trustees’ responsibilities statement set out on page 40, the Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Trustees are responsible for assessing the group 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 parent charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

52

Guy’s and St Thomas’ Foundation Annual Report and Financial Statements 2021/22

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

53

Guy’s and St Thomas’ Foundation Annual Report and Financial Statements 2021/22

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

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.

The objectives of our audit in respect of fraud, are: to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the charitable company.

Our approach was as follows:

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the 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.

54

Guy’s and St Thomas’ Foundation Annual Report and Financial Statements 2021/22

Use of our report

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

Luke Holt

(Senior Statutory Auditor)

For and on behalf of Moore Kingston Smith LLP, Statutory Auditor

Devonshire House 9 Appold Street London EC2A 2AP

Date: 11 October 2022

55

Guy’s and St Thomas’ Foundation Annual Report and Financial Statements 2021/22

Company number: 9341980

Consolidated statement of financial activities

(incorporating an Income and Expenditure Account)

For the year ended 31 March 2022

Notes 2022
Unrestricted
Funds
£’000
Restricted
Funds
£’000
Endowment
Funds
£’000
Total
Funds
£’000
1,488
9
16,467
17,964
29,769
240
(30,009)
–
2,666
508
–
3,174
2,628
5,161
–
7,789
36,551
5,918
(13,542)
28,927
351
11
10,971
11,333
1,227
3,650
–
4,877
1,578
3,661
10,971
16,210
30,608
3,463
–
34,071
9,530
2,371
–
11,901
40,138
5,834
–
45,972
41,716
9,495
10,971
62,182
(5,165)
(3,577)
(24,513)
(33,255)
525
–
74,607
75,132
(4,640)
(3,577)
50,094
41,877
(3,600)
3,600
–
–
–
–
–
–
(8,240)
23
50,094
41,877
68,846
11,091
880,509
960,446
60,606
11,114
930,603
1,002,323		 2021
Unrestricted
Funds
£’000
Restricted
Funds
£’000
Endowment
Funds
£’000
Total
Funds
£’000
Income from:
Investments
2
Release from endowment funds
3
Grant income
4
Donations, legacies and other
5		 1,796
16
15,693
17,505
28,353
187
(28,540)
–
1,150
–
–
1,150
1,464
8,368
–
9,832
Total income 32,763
8,571
(12,847)
28,487
Expenditure on:
Raising funds
Investment costs
6
Fundraising cost
6		 270
–
6,687
6,957
536
3,561
–
4,097
806
3,561
6,687
11,054
Charitable activities
Grants
6
Other charitable activities
6		 23,769
3,205
–
26,974
5,320
2,399
–
7,719
29,089
5,604
–
34,693
Total expenditure
8		 29,895
9,165
6,687
45,747
Net income/(expenditure)
before gains and losses on
investments
Net gains on revaluation
and disposal of investments
10		 2,868
(594)
(19,534)
(17,260)
89
–
162,694
162,783
Net income/(expenditure)
Transfers between funds
19		 2,957
(594)
143,160
145,523
(2,899)
2,899
–
–
Other recognised losses
Loss on revaluation of
tangible fixed assets
9		 (24)
–
–
(24)
Net movement in funds 34
2,305
143,160
145,499
Reconciliation of funds
Total funds brought forward		 68,812
8,786
737,349
814,947
Total funds carried forward 68,846
11,091
880,509
960,446

There were no gains or losses apart from those recognised above. All income is derived from continuing activities.

An analysis of the movements in funds is shown in notes 16 to 18.

The notes on pages 60 to 87 form part of these financial statements.

56

Guy’s and St Thomas’ Foundation Annual Report and Financial Statements 2021/22

Company number: 9341980

Consolidated balance sheet

As at 31 March 2022

Notes 2022
Unrestricted
Funds
£’000
Restricted
Funds
£’000
Endowment
Funds
£’000
Total at
31 March
£’000
5,216
–
–
5,216
27,198
–
1,030,313
1,057,511
32,414
–
1,030,313
1,062,727
–
–
25,403
25,403
1,353
464
27,213
29,030
65,000
–
(65,000)
–
16,547
20,980
13,596
51,123
82,900
21,444
1,212
105,556
34,928
5,785
–
40,713
11,086
3,288
26,441
40,815
46,014
9,073
26,441
81,528
36,886
12,371
(25,229)
24,028
69,300
12,371
1,005,084
1,086,755
8,694
1,184
–
9,878
–
73
14,481
14,554
–
–
60,000
60,000
8,694
1,257
74,481
84,432
60,606
11,114
930,603
1,002,323
60,606
–
–
60,606
–
11,114
–
11,114
60,606
11,114
–
71,720
–
–
930,603
930,603
60,606
11,114
930,603
1,002,323		 2021
Unrestricted
Funds
£’000
Restricted
Funds
£’000
Endowment
Funds
£’000
Total at
31 March
£’000
Fixed assets
Tangible assets
9
Investments
10		 3,837
–
–
3,837
26,802
–
985,155
1,011,957
30,639
–
985,155
1,015,794
Current assets
Investments
10
Debtors
11
Inter-fund loan
12
Cash and short term deposits
13		 –
–
16,154
16,154
846
655
6,095
7,596
65,000
–
(65,000)
–
10,402
21,950
15,353
47,705
76,248
22,605
(27,398)
71,455
Creditors:
Amounts falling due within one
year
Grant creditors
7
Other creditors
14		 24,393
6,320
–
30,713
2,899
2,890
4,806
10,595
27,292
9,210
4,806
41,308
Net current assets/(liabilities) 48,956
13,395
(32,204)
30,147
Total assets less current
liabilities		 79,595
13,395
952,951
1,045,941
Creditors:
Amounts falling due after one
year
Grant creditors
7
Other creditors
Privateplacement loan
15		 10,749
2,181
–
12,930
–
123
12,442
12,565
–
–
60,000
60,000
10,749
2,304
72,442
85,495
Total net assets 68,846
11,091
880,509
960,446
Funds of the charity
Income funds
Unrestricted
16
Restricted
17		 68,846
–
–
68,846
–
11,091
–
11,091
68,846
11,091
–
79,937
Capital funds
Endowment
18		 –
–
880,509
880,509
Total funds 68,846
11,091
880,509
960,446

Approved by the Trustees and signed on their behalf:

Paul Brown 28 September 2022

The notes on pages 60 to 87 form part of these financial statements.

57

Guy’s and St Thomas’ Foundation Annual Report and Financial Statements 2021/22

Company number: 9341980

Balance sheet

As at 31 March 2022

Notes 2022
Unrestricted
Funds
£’000
Restricted
Funds
£’000
Endowment
Funds
£’000
Total at
31 March
£’000
5,216
–
–
5,216
25,432
–
1,037,252
1,062,684
30,648
–
1,037,252
1,067,900
1,357
464
31,050
32,871
65,000
–
(65,000)
–
16,304
20,980
13,284
50,568
82,661
21,444
(20,666)
83,439
34,928
5,785
–
40,713
11,087
3,288
25,968
40,343
46,015
9,073
25,968
81,056
36,646
12,371
(46,634)
2,383
67,294
12,371
990,618
1,070,283
8,694
1,184
–
9,878
–
73
–
73
–
–
60,000
60,000
8,694
1,257
60,000
69,951
58,600
11,114
930,618
1,000,332
58,600
–
–
58,600
–
11,114
–
11,114
58,600
11,114
–
69,714
–
–
930,618
930,618
58,600
11,114
930,618
1,000,332		 2021
Unrestricted
Funds
£’000
Restricted
Funds
£’000
Endowment
Funds
£’000
Total at
31 March
£’000
Fixed assets
Tangible assets
9
Investments
10		 3,837
–
–
3,837
24,758
–
986,075
1,010,833
28,595
–
986,075
1,014,670
Current assets
Debtors
11
Inter-fund loan
12
Cash and short term deposits
13		 903
655
8,936
10,494
65,000
–
(65,000)
–
10,378
21,950
15,229
47,557
76,281
22,605
(40,835)
58,051
Creditors:
Amounts falling due
within one year
Grant creditors
7
Other creditors
14		 24,393
6,320
–
30,713
2,901
2,888
4,697
10,486
27,294
9,208
4,697
41,199
Net current assets/(liabilities) 48,987
13,397
(45,532)
16,852
Total assets less current
liabilities		 77,582
13,397
940,543
1,031,522
Creditors:
Amounts falling due
after one year
Grant creditors
7
Other creditors
Privateplacement loan
15		 10,749
2,181
–
12,930
–
123
–
123
–
–
60,000
60,000
10,749
2,304
60,000
73,053
Total net assets 66,833
11,093
880,543
958,469
Funds of the charity
Income funds
Unrestricted
16
Restricted
17		 66,833
–
–
66,833
–
11,093
–
11,093
66,833
11,093
–
77,926
Capital funds
Endowment
18		 –
–
880,543
880,543
Total funds 66,833
11,093
880,543
958,469

A separate Statement of Financial Activities and Income and Expenditure Account are not presented for the Foundation itself as the Foundation has taken advantage of the exemptions offered by section 408 of the Companies Act 2006. The net income of the Foundation only for the year ended 31 March 2022 was £41,863,000 (2021: £145,537,000).

Approved by the Trustees and signed on their behalf:

Paul Brown 28 September 2022

The notes on pages 60 to 87 form part of these financial statements..

58

Guy’s and St Thomas’ Foundation Annual Report and Financial Statements 2021/22

Company number: 9341980

Consolidated statement of cash flows

As at 31 March 2022

As at 31 March 2022
Notes 31 March
2022
£’000
31 March
2021
£’000
Cash flows from operating activities:
Net cash used in operating activities		 (33,306)
(12,533)
Cash flows from investing activities:
Rents, dividends and interest from investments
Proceeds from sale of investments
Purchase of investments
Purchase of tangible fixed assets		 17,965
17,505
223,473
192,995
(202,320)
(183,001)
(1,529)
(92)
Net cashprovided by investing activities 37,588
27,407
Change in cash and cash equivalents in the reporting period
Cash and cash equivalents at the beginning of the reporting period
13
Change in cash and cash equivalents due to exchange rate movements		 4,282
14,874
47,705
34,349
(864)
(1,518)
Cash and cash equivalents at the end of the reportingperiod
13		 51,123
47,705

Reconciliation of net income to net cash flow from operating activities

Reconciliation of net income to net cash flow from operating activities
31 March
2022
£’000
31 March
2021
£’000
Net (expenditure)/income for the reporting period
Adjustments for:
Depreciation charges
(Gains)/loss on investments
Programme-related investments written off
Rents, dividends and interest from investments
Donated fixed assets
Decrease in debtors
Increase in grants payable
Increase in other creditors		 41,877
145,523
142
29
(75,132)
(162,783)
48
5
(17,964)
(17,505)
–
(1)
(21,434)
8,387
6,948
5,618
32,209
8,194
Net cash used in operating activities (33,306)
(12,533)
Increase in grants payable includes:
Grants awarded
Grants paid out
Change in fair value		 28,832
23,411
(21,954)
(17,750)
70
(43)
6,948
5,618

The notes on pages 60 to 87 form part of these financial statements..

59

Guy’s and St Thomas’ Foundation Annual Report and Financial Statements 2021/22

Company number: 9341980

Notes to the financial statements

1. Accounting policies

1.1 General

The financial statements have been prepared under the historical cost convention, with the exception of: investments and works of art which are included at market value; and grant creditors payable after more than one year which are included at their present value. The financial statements have been prepared in accordance with Financial Reporting Standard 102 (“FRS 102”), the Statement of Recommended Practice for Accounting and Reporting by Charities issued in January 2015 (“Charity SORP”) as amended by Update Bulletin 2 issued in October 2018, and applicable United Kingdom law and accounting standards. The Foundation is a Public Benefit Entity as defined by FRS 102. The financial statements are prepared in sterling, which is the functional currency of the Foundation. Monetary amounts in these financial statements are rounded to the nearest thousand pounds.

1.2 Going concern

The Trustees have assessed whether the use of the going concern basis is appropriate and have considered (i) possible events or conditions that might cast significant doubt on the ability of the Foundation to continue as a going concern, (ii) the Foundation’s forecasts and projections, and (iii) potential pressures on income. This assessment has been made for a period of at least one year from the date of approval of the financial statements. After making enquiries, the Trustees have concluded that there is a reasonable expectation that the Foundation has adequate resources to continue in operational existence for the foreseeable future. The Foundation therefore continues to adopt the going concern basis in preparing its financial statements.

1.3 Fund accounting

The Foundation maintains various types of funds and descriptions of these funds are provided in notes 1 to 17. Income and expenditure on these funds is shown separately within the Statement of Financial Activities and analysed into their main components also in notes 16 to 18.

There are three main types of funds as follows:

1.4 Critical accounting estimates and judgements

The Foundation’s management is required to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances. The results of the estimates and assumptions form the basis of making the judgements about carrying values of assets and liabilities that are not readily apparent from other sources. The judgements that have the most significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows:

60

Guy’s and St Thomas’ Foundation Annual Report and Financial Statements 2021/22

Company number: 9341980

Notes to the financial statements

1. Accounting policies (cont.)

1.5 Income

All income received or receivable is brought into account and allocated as appropriate to one of the three types of fund

1.6 Expenditure

All expenditure is accounted for on an accruals basis. The majority of costs are attributable directly to specific activities. Shared costs are apportioned to activities based on an estimate of the proportion of staff time spent on each of these areas of work. Expenditure in the accounts is analysed into the following activities:

Expenditure on raising funds comprise costs incurred in managing the Foundation’s investment portfolio and maintaining the Foundation’s investment properties as well as amounts both charged to and directly incurred by the Foundation for fundraising services.

Grants awarded are brought into account when a constructive obligation exists for the Trustees to make the grant.

Other charitable activities relate to expenditure in support of beneficiaries which is not made as part of the normal grants programme. It includes day-to-day beneficiary expenditure incurred through special purpose funds, charitable activity funded by contractual agreements, and expenditure on maintaining and displaying the art collection.

1.7 Pension contributions and employee benefits

The cost of employer contributions to the NHS Pension Scheme and other schemes is charged to the Statement of Financial Activities.

The NHS Pension Scheme is an unfunded defined benefit scheme that covers NHS employers, GP practices and other bodies allowed under the direction of the Secretary of State. The Scheme is not designed to be run in a way that would enable employer bodies to identify their share of the underlying Scheme assets and liabilities. Therefore the Scheme is accounted for as a defined contribution scheme. Employer contributions to the NHS Scheme are based on 14.38% of gross salaries.

Termination benefits are recognised immediately as an expense when the Foundation is demonstrably committed to terminate the employment of an employee through, for example, redundancy, or to provide termination benefits.

1.8 Allocation and apportionment of costs

Staff costs are considered on a person by person basis and allocated between expense headings on the basis of an estimate of time spent on activities in each area. Other overheads which are not directly attributable to one particular area of activity are apportioned in the same ratios as salary costs. Details of expenditure are provided in the notes to the accounts.

1.9 Tangible fixed assets

Capitalisation

Valuation

61

Guy’s and St Thomas’ Foundation Annual Report and Financial Statements 2021/22

Company number: 9341980

Notes to the financial statements

1. Accounting policies (cont.)

1.9 Tangible fixed assets (cont.)

Depreciation

Impairment

1.10 Fixed asset investments

Property assets are included at market valuation. Investment properties are valued annually by professional valuers and the last full valuation was as at 31 December 2021. Where a decision to sell a property was made before the balance sheet date and offers to purchase were received subsequent to the balance sheet date, the value at which the property is included in the accounts has been adjusted to reflect the estimated net sale price achievable. The Foundation does not believe that the valuations of property assets have materially changed subsequent to the balance sheet date.

Listed investments are included in the balance sheet at market value as at 31 March 2022. Inevitably, market valuations fluctuate, sometimes significantly, over time including over the period subsequent to the balance sheet date. However, given the long-term nature of its investment portfolio, the Foundation does not believe that there has been any material permanent diminution in investment valuations subsequent to the balance sheet date.

Unlisted Investments are valued with reference to the most recent valuations provided by the fund managers, all of which were as at 31 March 2022. The Foundation does not believe that there is any evidence of any material permanent reduction in these valuations subsequent to the balance sheet date.

The net gains and losses arising on revaluation and disposals throughout the year are included in the statement of financial activities.

1.11 Financial instruments

Financial instruments are contracts that give rise to a financial asset in one entity and a financial liability or equity instrument of another entity. Financial instruments are classified as either basic financial instruments or other financial instruments.

Basic financial instruments are recognised in the accounts as follows:

Cash and cash equivalents, which includes cash at banks and in hand and short-term deposits with a maturity date of three months or less, are carried at the value of the cash so held.

Trade and other exchange transaction debtors and creditors receivable or payable within one year of the reporting date are initially recognised at their settlement amount and subsequently measured at the cash or other consideration expected to be paid or received.

Other debt instruments subject to a market rate of interest are initially recognised at the amount of principal advanced less material arrangement or similar fees and subsequently measured at amortised cost using the effective interest method.

Fixed asset financial investments are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date as described in note 1.10 above.

Other financial instruments are used as part of the Foundation’s portfolio management and risk management strategy. The Foundation’s use of other financial instruments during the year ended 31 March 2022 comprised forward dated contracts for the purchase and sale of foreign currencies (“forward FX contracts”) which are both initially recognised and subsequently measured at their fair value in the balance sheet with gains and losses recognised in the statement of financial activities.

62

Guy’s and St Thomas’ Foundation Annual Report and Financial Statements 2021/22

Company number: 9341980

Notes to the financial statements

1. Accounting policies (cont.)

1.12 Grant creditors

Grant creditors are amounts committed under grant awards but not yet paid. They are non-contractual in nature and therefore not financial instruments. Grant creditors that are estimated as payable after more than one year are measured at the present value of the expected future payments discounted at a market rate of interest.

1.13 Consolidation

The consolidated financial statements include the results of the Foundation and its wholly-owned subsidiary undertakings, GSTC Health Innovations Limited, GSTC Property Investments Limited and GSTC Property Developments Ltd. The Foundation has not presented its unconsolidated income and expenditure account in accordance with the exemption under Section 408 of the Companies Act 2006.

2. Income from investments

2022
2021
Unrestricted
Funds
£’000
Restricted
Funds
£’000
Endowment
Funds
£’000
Total
Funds
£’000
Unrestricted
Funds
£’000
Restricted
Funds
£’000
Endowment
Funds
£’000
Total
Funds
£’000
Financial investments
Financial investments
Dividends, distributions and interest
Global equity
Private equity
Programme-related financial investments
Royalties and interest		 –
–
721
721
–
–
975
975
–
–
2
2
4
4
12
–
–
12
7
–
–
7
12
723
735
7
–
979
986
Property investments
Property investments
Rents
Other income
Programme-related property investments
Rents		 –
–
–
–
16,195
16,195
–
–
15,769
15,769
–
–
175
175
–
–
5
5
840
–
–
840
716
–
–
716
840
–
16,370
17,210
716
–
15,774
16,490
Interest
Cash and short-term deposits
Inter-fund loan (see note 12)		 10
9
–
19
9
16
4
29
626
–
(626)
–
1,064
–
(1,064)
–
636
9
(626)
19
1,073
16
(1,060)
29
1,488
9
16,467
17,964
1,796
16
15,693
17,505

63

Guy’s and St Thomas’ Foundation Annual Report and Financial Statements 2021/22

Company number: 9341980

Notes to the financial statements

3. Release from endowment funds

2022
2021
Unrestricted
Funds
£’000
Restricted
Funds
£’000
Endowment
Funds
£’000
Total
Funds
£’000
Unrestricted
Funds
£’000
Restricted
Funds
£’000
Endowment
Funds
£’000
Total
Funds
£’000
For disbursement under the Foundation’s
distribution rule
Permanent endowments total
return allocated to income		 29,769
–
(29,769)
–
28,353
–
(28,353)
–
–
240
(240)
–
–
187
–
–
29,769
240
(30,009)
–
28,353
187
(28,540)
–

The Foundation aims to release 4% of the value of the expendable endowment on a smoothed basis annually to the unrestricted fund for charitable and other expenditure, whilst maintaining the value of the endowment in line with the level of the Retail Prices Index (RPI) over the long term.

The Foundation aims to release approximately 4% of the value of the permanent endowments annually for charitable spending in accordance with their objects by way of transfers to appropriate restricted funds.

4. Grant income

4. Grant income
2022
2021
Unrestricted
Funds
£’000
Restricted
Funds
£’000
Endowment
Funds
£’000
Total
Funds
£’000
Unrestricted
Funds
£’000
Restricted
Funds
£’000
Endowment
Funds
£’000
Total
Funds
£’000
Grant income
South East London CCG
Clean Air Fund
Wellcome Trust
Other		 1,700
–
–
1,700
1,000
–
–
1,000
387
–
–
387
150
–
–
150
543
–
–
543
–
–
–
–
36
508
–
544
–
–
–
–
2,666
508
–
3,174
1,150
–
–
1,150

The grant from South East London CCG is an unconditional award of £1,700,000. The grant from Clean Air Fund is a conditional award with a total value of £2,000,000 over a four-year term from 1 January 2021 to 31 December 2023, of which the conditions relating to £537,000 had been met prior to 31 March 2022. The Foundation was also awarded a grant with a total value of £1,499,800 from Wellcome Trust prior to 31 March 2021, of which the conditions relating to £543,000 had been met prior to 31 March 2022.

5. Income from donations, legacies and other

2022
2021
Unrestricted
Funds
£’000
Restricted
Funds
£’000
Endowment
Funds
£’000
Total
Funds
£’000
Unrestricted
Funds
£’000
Restricted
Funds
£’000
Endowment
Funds
£’000
Total
Funds
£’000
Donations and legacies
Donations
Legacies		 589
4,406
–
4,995
1,210
7,460
–
8,670
2,012
752
–
2,764
252
905
–
1,157
Other 2,601
5,158
–
7759
1,462
8,365
–
9,827
27
3
–
30
2
3
–
5
2,628
5,161
–
7,789
1,464
8,368
–
9,832

64

Guy’s and St Thomas’ Foundation Annual Report and Financial Statements 2021/22

Company number: 9341980

Notes to the financial statements

6. Total expenditure

2022
Investments
£’000
Fundraising
£’000
Total raising
funds
£’000
Grants
£’000
Other
charitable
activities
£’000
Total
charitable
activities
£’000
Total
£’000
Unrestricted funds
Direct expenditure
Property investments
Grants awarded
Other direct
269
–
269
–
–
–
269
–
–
–
25,948
–
25,948
25,948
–
1,170
1,170
–
6,964
6,964
8,134
269
1,170
1,439
25,948
6,964
32,912
34,351
Support costs
Salary and other payroll
Other support
Depreciation
56
39
95
3,242
1,758
5,000
5,095
25
17
42
1,430
776
2,206
2,248
1
1
2
58
32
90
92
82
57
139
4,730
2,566
7,296
7,435
Change in fair value
Grants creditors
–
–
–
(70)
–
(70)
(70)
Total unrestricted funds 351
1,227
1,578
30,608
9,530
40,138
41,716
Restricted funds
Direct expenditure
Grants awarded
Other direct
–
–
–
2,884
–
2,884
2,884
–
3,137
3,137
–
1,797
1,797
4,934
–
3,137
3,137
2,884
1,797
4,681
7,818
Support costs
Salary and other payroll
Other support
Depreciation
8
352
360
397
393
790
1,150
3
155
158
175
174
349
507
–
6
6
7
7
14
20
11
513
524
579
574
1,153
1,677
Total restricted funds 11
3,650
3,661
3,463
2,371
5,834
9,495
Endowment funds
Direct expenditure
Financial investments
Property investments
1,715
–
1,715
–
–
–
1,715
4,633
–
4,633
–
–
–
4,633
6,348
–
6,348
–
–
–
6,348
Support costs
Salary and other payroll
Other support
Depreciation
1,637
–
1,637
–
–
–
1,637
723
–
723
–
–
–
723
30
–
30
–
–
–
30
2,390
–
2,390
–
–
–
2,390
Interest costs
Private placement loan
Other interest
2,232
–
2,232
–
–
–
2,232
1
–
1
–
–
–
1
2,233
–
2,233
–
–
–
2,233
Total endowment funds 10,971
–
10,971
–
–
–
10,971
11,333
4,877
16,210
34,071
11,901
45,972
62,182
Of which:
Total direct expenditure
6,617
4,307
10,924
28,832
8,761
37,593
48,517

65

Guy’s and St Thomas’ Foundation Annual Report and Financial Statements 2021/22

Company number: 9341980

Notes to the financial statements

6. Total expenditure (cont.)

6. Total expenditure(cont.)
2021
Investments
£’000
Fundraising
£’000
Total raising
funds
£’000
Grants
£’000
Other
charitable
activities
£’000
Total
charitable
activities
£’000
Total
£’000
Unrestricted funds
Direct expenditure
Property investments
Grants awarded
Other direct		 170
–
170
–
–
–
170
–
–
–
20,552
–
20,552
20,552
–
531
531
–
3,518
3,518
4,049
170
531
701
20,552
3,518
24,070
24,771
Support costs
Salary and other payroll
Other support
Depreciation		 68
5
73
2,229
1,232
3,461
3,534
32
–
32
1,022
558
1,580
1,612
–
–
–
10
12
22
22
100
5
105
3,261
1,802
5,063
5,168
Change in fair value
Grants creditors		 –
–
–
(44)
–
(44)
(44)
Total unrestricted funds 270
536
806
23,769
5,320
29,089
29,895
Restricted funds
Direct expenditure
Grants awarded
Other direct		 –
–
–
2,859
–
2,859
2,859
–
3,560
3,560
–
2,071
2,071
5,631
–
3,560
3,560
2,859
2,071
4,930
8,490
Support costs
Salary and other payroll
Other support
Depreciation		 –
1
1
236
224
460
461
–
–
–
109
103
212
212
–
–
–
1
1
2
2
–
1
1
346
328
674
675
Total restricted funds –
3,561
3,561
3,205
2,399
5,604
9,165
Endowment funds
Direct expenditure
Financial investments
Property investments		 249
–
249
–
–
–
249
2,608
–
2,608
–
–
–
2,608
2,857
–
2,857
–
–
–
2,857
Support costs
Salary and other payroll
Other support
Depreciation		 1,079
–
1,079
–
–
–
1,079
514
–
514
–
–
–
514
5
–
5
–
–
–
5
1,598
–
1,598
–
–
–
1,598
Interest costs
Private placement loan
Other interest		 2,206
–
2,206
–
–
–
2,206
26
–
26
–
–
–
26
2,232
–
2,232
–
–
–
2,232
Total endowment funds 6,687
–
6,687
–
–
–
6,687
6,957
4,097
11,054
26,974
7,719
34,693
45,747
Of which:
Total direct expenditure		 3,027
4,091
7,118
23,411
5,589
29,000
36,118

66

Guy’s and St Thomas’ Foundation Annual Report and Financial Statements 2021/22

Company number: 9341980

Notes to the financial statements

6. Total expenditure (cont.)

The Foundation’s fundraising activities are contracted to King’s College London.

Total expenditure includes auditor’s remuneration of £41,446 (2021: £38,154) in respect of the external audit of the statutory accounts.

Direct charitable expenditure

Direct charitable expenditure
Total
2018
£’000
Total
2019
£’000
Total
2020
£’000
Total
2021
£’000
Total
2022
£’000
Total
2018–2022
£’000
By activity: five-year profile
Impact on Urban Health programmes
Charity for Guy’s and St Thomas’ NHS Foundation Trust
Investing for health
Health Innovation Fund
Programme-related investment write down		 3,286
10,014
14,323
17,637
22,872
68,132
14,629
7,923
9,898
10,905
13,065
56,420
–
–
–
–
1,500
1,500
3,896
968
1,015
458
156
6,493
4,209
–
–
–
–
4,209
By recipient: five-year profile
Guy’s and St Thomas’ NHS Foundation Trust
Other organisations		 26,020
18,905
723
29,000
37,593
136,754
–
–
15,919
8,584
10,243
10,488
11,179
56,413
10,101
10,321
14,993
18,512
26,414
80,341
26,020
18,905
25,236
29,000
37,593
136,754

Amounts are shown net of write backs and other adjustments.

The Health Innovation Fund represents expenditure made in accordance with the Foundation’s previous strategy.

The programme-related investment write down relates to an adjustment to the fair value of an investment made in furtherance of the Foundation’s charitable purpose.

67

Guy’s and St Thomas’ Foundation Annual Report and Financial Statements 2021/22

Company number: 9341980

Notes to the financial statements

7. Grants

7.1 Grants committed but not yet paid

Grants awarded are brought into account when a constructive obligation exists for the Trustees to make the grant. Amounts thus committed but not yet paid are included on the balance sheet as grant creditors. Grant creditors that are estimated as payable after more than one year are measured at the present value of the expected future payments discounted at a market rate of interest, with the change in the value of the discount being included in grant expenditure (see note 6).

the discount being included in grant expenditure (see note 6).
Unrestricted
Funds
£’000
Restricted
Funds
£’000
Endowment
Funds
£’000
Total
Funds
£’000
Group and Company
Committed but not yet paid at 31 March 2021
Grants awarded
Payments
35,513
8,501
–
44,014
25,948
2,884
–
28,832
(17,538)
(4,416)
–
(21,954)
Fair value adjustment 43,923
6,969
–
50,892
(301)
–
–
(301)
Grant creditors at 31 March 2022 43,622
6,969
–
50,591
Unrestricted Restricted Endowment Total
Funds Funds Funds Funds
£’000 £’000 £’000 £’000
Group and Company
Committed but not yet paid at 31 March 2020 30,770 7,583 – 38,353
Grants awarded 20,551 2,859 – 23,410
Payments (15,808) (1,941) – (17,749)
35,513 8,501 – 44,014
Fair value adjustment (371) – – (371)
Grant creditors at 31 March 2021 35,142 8,501 – 43,643

68

Guy’s and St Thomas’ Foundation Annual Report and Financial Statements 2021/22

Company number: 9341980

Notes to the financial statements

7. Grants (cont.)

7.2 Grants awarded by recipient

Number
Awarded Total
2022
£’000
Guy’s and St Thomas’ NHS Foundation Trust 50
9,431
Other organisations with total grants awarded greater than £100,000:
King’s College London
Share Action
London South Teaching School Hub
Walcot Foundation
Mission Ventures
The Ubele Initiative
Loughborough Community Centre
Design Council
Greater London Authority
Sustain
Hello Brave
Advocacy Academy
Breathe Arts Health Research
Greenhouse Sports
Kineara
London Early Years Foundation
The Glimpse Network Ltd
London School of Economics and Political Science
Inclusive Boards
Community TechAid
UCL Institute for Innovation and Public Purpose (IIPP)
Magic Breakfast
Purpose
South London and Maudsley NHS Foundation Trust
Citizens UK
Do It Now Now
Grid Smarter Cities Ltd
Asthma UK and British Lung Foundation Partnership
Timewise Foundation
Repowering London
Imperial College London
Food Foundation
Action on Sugar
Ascension Trust
Westminster City Council (Cross River Partnership)
Camberwell After School Project
Southwark Law Centre
Centric Community Research		 8
2,011
1
1,525
1
1,035
1
875
1
802
1
720
1
700
1
630
2
609
1
559
1
544
1
492
2
477
1
463
1
463
1
440
1
374
1
371
1
310
1
300
1
299
1
277
1
262
2
256
1
250
1
250
1
239
1
218
1
203
1
197
1
194
1
185
1
180
1
180
1
123
1
116
1
105
1
104
Other organisations 48
17,338
53
2,063
Total grants awarded 151
28,832

There were no grants awarded to individuals during either of the years ended 31 March 2021 or 31 March 2022. A full list of all grants awarded during the year is available on request from the Foundation.

69

Guy’s and St Thomas’ Foundation Annual Report and Financial Statements 2021/22

Company number: 9341980

Notes to the financial statements

8. Staff costs

Analysis of total staff costs

Analysis of total staff costs
2022
£’000
2021
£’000
Salaries and wages
Social security costs
Otherpension costs		 6,476
4,115
663
470
743
489
7,882
5,074

During the year non-contractual payments of £71,250 (2020: £10,500) were made to former employees following the termination of their employment in settlement of any claims or potential claims by those employees against the Foundation.

Remuneration of senior employees

The following number of senior employees received salaries falling within the following ranges:

2022 2021
Number Number
£60,001 to £70,000 5 5
£70,001 to £80,000 5 8
£80,001 to £90,000 6 1
£90,001 to £100,000 – 2
£100,001 to £110,000 1 –
£110,001 to £120,000 – –
£120,001 to £130,000 2 1
£130,001 to £140,000 1 –
£140,001 to £150,000 – 1
£160,001 to £170,000 – 1
£210,001 to £220,000 1 –
£440,001 to £450,000 1 –

No senior employee received any taxable benefits in kind in addition to their salaries as shown above.

Number of employees 2022
Number
2021
Number
103
69		 Pension creditor
2022
£’000
2021
£’000
Average monthly number of employees in the
year		 Pension contributions due but not yetpaid 102
16

Key management personnel

The total employment costs of key management personnel – who are the six members of the Foundation’s Executive Team – during the year were £1,318,000 (2021: £785,000), of which £1,078,000 (2021: £637,000) was salaries, £135,000 (2021: £76,000) employer’s National Insurance contributions and £105,000 (2021: £72,000) pension contributions.

Pension contributions for senior employees

The following pension contributions were made for senior employees:

Total value of
contributions
£’000
Number
of staff
Defined benefit schemes
Defined contribution schemes		 57
4
201
17

70

Guy’s and St Thomas’ Foundation Annual Report and Financial Statements 2021/22

Company number: 9341980

Notes to the financial statements

9. Tangible fixed assets

9. Tangible fixed assets
Art
Collection
£’000
Leasehold
Improvements
£’000
Fixtures,
Fittings and
Equipment
£’000
Total
£’000
Group and Company
Cost or valuation
Balance at 31 March 2021
Acquisitions
Disposals		 3,698
266
212
4,176
11
1,435
83
1,529
–
(139)
(174)
(313)
Balance at 31 March 2022 3,709
1,562
121
5,392
Depreciation
Balance at 31 March 2021
Disposals
Charge for the year		 –
144
195
339
–
(131)
(174)
(305)
–
108
34
142
Balance at 31 March 2022 –
121
55
176
Net book value at 31 March 2022 3,709
1,441
66
5,216
Net book value at 31 March 2021
Original cost at 31 March 2022
Original cost at 31 March 2021		 3,698
122
17
3,837
4,780
1,562
121
6,463
4,769
266
212
5,247

The Foundation’s accounting policy is to capitalise only those assets with a cost of £5,000 or above. As the majority of IT and other office equipment items purchased have a cost of less than this threshold, they are charged in full to the SoFA in the year of acquisition. During the year, the total cost of IT and other office equipment purchased was £131,000 (2021: £15,000).

71

Guy’s and St Thomas’ Foundation Annual Report and Financial Statements 2021/22

Company number: 9341980

Notes to the financial statements

10. Fixed and current asset investments

2022
2021
Investments
£’000
Programme-
Related
Investments
£’000
Total
£’000
Investments
£’000
Programme-
Related
Investments
£’000
Total
£’000
Group
Fixed assets
Unrestricted funds
Financial investments
Property investments		 10
7,320
7,330
10
6,718
6,728
–
19,868
19,868
–
20,074
20,074
10
27,188
27,198
10
26,792
26,802
Endowment funds
Financial investments
Property investments		 629,632
–
629,632
608,644
–
608,644
400,681
–
400,681
376,511
–
376,511
1,030,313
–
1,030,313
985,155
–
985,155
Current assets
Endowment funds
Property investments		 25,403
–
25,403
16,154
–
16,154
Total investments
Financial investments
Property investments		 629,642
7,320
636,962
608,654
6,718
615,372
426,084
19,868
445,952
392,665
20,074
412,739
1,055,726
27,188
1,082,914
1,001,319
26,792
1,028,111
Company
Unrestricted funds
Financial investments
Property investments		 10
5,554
5,564
10
4,674
4,684
–
19,868
19,868
–
20,074
20,074
10
25,422
25,432
10
24,748
24,758
Endowment funds
Financial investments
Property investments		 629,632
–
629,632
608,644
–
608,644
407,620
–
407,620
377,431
–
377,431
1,037,252
–
1,037,252
986,075
–
986,075
Total funds
Financial investments
Property investments		 629,642
5,554
635,196
608,654
4,674
613,328
407,620
19,868
427,488
377,431
20,074
397,505
1,037,262
25,422
1,062,684
986,085
24,748
1,010,833

All of the property classified as current assets is owned by a subsidiary company and, at the date of these accounts, is actively being marketed for sale. It is therefore included at the balance sheet date at its estimated net sales value after deducting promoter’s commission and the purchase cost of a third party’s equitable interest in the property.

72

Guy’s and St Thomas’ Foundation Annual Report and Financial Statements 2021/22

Company number: 9341980

Notes to the financial statements

10. Fixed and current asset investments (cont.)

10.1 Investments

10. Fixed and current asset investments(cont.)
10.1 Investments
Market Value
31 March
2021
£’000
Disposals
at Carrying
Value
£’000
Acquisitions
at
Cost
£’000
Net Gains
on
Revaluation
£’000
Market Value
31 March
2022
£’000
Group
Unrestricted funds
Financial investments
Global equity		 10
–
–
–
10
Endowment funds
Financial investments
Global equity
Hedged equity
Private equity
Absolute return
Credit
Property funds
Multi-asset class
Forward FX contracts
Other		 192,092
(34,831)
52,131
(8,032)
201,360
133,985
(34,232)
14,495
(5,821)
108,427
152,819
(46,293)
24,602
30,669
161,797
79,291
(74,511)
98,103
2,461
105,344
38,357
(8,685)
4,661
3,885
38,218
4,811
(114)
2,879
(25)
7,551
5,917
(210)
–
118
5,825
1,078
–
–
(1,450)
(372)
294
(1,402)
1,402
1,188
1,482
Property investments 608,644
(200,278)
198,273
22,993
629,633
392,665
(7,820)
3,223
38,017
426,084
1,001,309
(208,098)
201,495
61,010
1,055,716
1,001,319
(208,098)
201,495
61,010
1,055,726
Company
Unrestricted funds
Financial investments
Global equity		 10
–
–
–
10
Endowment funds
Financial investments
Global equity
Hedged equity
Private equity
Absolute return
Credit
Property funds
Multi-asset class
Forward FX contracts
Other		 192,092
(34,831)
52,131
(8,031)
201,360
133,985
(34,231)
14,495
(5,821)
108,427
152,819
(46,293)
24,602
30,669
161,797
79,291
(74,511)
98,103
2,461
105,344
38,357
(8,685)
4,661
3,885
38,218
4,811
(114)
2,879
(25)
7,551
5,917
(210)
–
118
5,825
1,078
–
–
(1,450)
(372)
294
(1,402)
1,402
1,188
1,482
Property investments 608,644
(200,277)
198,273
22,993
629,632
377,431
(7,820)
682
37,327
407,620
986,075
(208,098)
198,955
60,320
1,037,252
986,085
(208,098)
198,955
60,320
1,037,262

73

Guy’s and St Thomas’ Foundation Annual Report and Financial Statements 2021/22

Company number: 9341980

Notes to the financial statements

10. Fixed and current asset investments (cont.)

10.1 Investments (cont.)

Analysis of market value and historic cost

Analysis of market value and historic cost
Listed
UK
£’000
Listed
Overseas
£’000
Listed
UK
£’000
Unlisted
Overseas
£’000
2022
Total
£’000
2021
Total
£’000
Group
Global equity
Hedged equity
Private equity
Absolute return
Credit
Property funds
Multi-asset class
Forward FX contracts
Property
Other		 23
178,806
–
22,541
201,370
192,102
–
25,378
–
83,049
108,427
133,985
–
–
6,220
155,577
161,797
152,819
–
–
–
105,344
105,344
79,291
–
262
19,866
18,090
38,218
38,357
–
–
7,551
–
7,551
4,811
–
–
–
5,825
5,825
5,917
–
–
–
(372)
(372)
1,078
–
–
426,084
–
426,084
392,665
–
–
1,482
–
1,482
294
Market value at 31 March 2022 23
204,447
461,204
390,053
1,055,726
Market value at 31 March 2021 10
236,109
421,431
343,769
1,001,319
Historic cost at 31 March 2022
Historic cost at 31 March 2021
Company
Global equity
Hedged equity
Private equity
Absolute return
Credit
Property funds
Multi-asset class
Forward FX contracts
Property
Other		 13
124,491
181,970
260,925
567,399
–
133,787
193,790
247,533
575,110
23
178,806
–
22,541
201,370
192,102
–
25,378
–
83,049
108,427
133,985
–
–
6,220
155,577
161,797
152,819
–
–
–
105,344
105,344
79,291
–
262
19,866
18,090
38,218
38,357
–
–
7,551
–
7,551
4,811
–
–
–
5,825
5,825
5,917
–
–
–
(372)
(372)
1,078
–
–
407,620
–
407,620
377,431
–
–
1,482
–
1,482
294
Market value at 31 March 2022 23
204,446
442,739
390,054
1,037,262
Market value at 31 March 2021 10
236,109
406,197
343,769
986,085
Historic cost at 31 March 2022
Historic cost at 31 March 2021		 13
124,491
168,364
260,925
553,793
–
133,787
180,184
247,533
561,504

74

Guy’s and St Thomas’ Foundation Annual Report and Financial Statements 2021/22

Company number: 9341980

Notes to the financial statements

10. Fixed and current asset investments (cont.)

10.2. Programme-related investments

10. Fixed and current asset investments(cont.)
10.2. Programme-related investments
Market Value
31 March
2021
£’000
Disposals
at Carrying
Value
£’000
Acquisitions
at Cost
£’000
Net Gains on
Revaluation
£’000
Market Value
31 March
2022
£’000
Group
Unrestricted funds
Property
Other		 20,074
(469)
–
263
19,868
6,718
(9)
825
(166)
7,320
26,792
(478)
825
97
27,188
Historic cost at 31 March 2022
Historic cost at 31 March 2021
Company
Unrestricted funds
Property
Other		 6,929
6,902
20,074
(469)
–
263
19,868
4,674
–
813
67
5,554
24,748
(469)
813
330
25,422
Historic cost at 31 March 2022
Historic cost at 31 March 2021		 5,774
5,750

Programme-related investments are investments made directly in pursuit of the Foundation’s charitable purposes, are unlisted and are held in the United Kingdom.

75

Guy’s and St Thomas’ Foundation Annual Report and Financial Statements 2021/22

Company number: 9341980

Notes to the financial statements

10. Fixed and current asset investments (cont.)

10.3 Net gains on revaluation and disposal of investments

2022
2021
Investments
£’000
Programme-
Related
Investments
£’000
Total
£’000
Investments
£’000
Programme-
Related
Investments
£’000
Total
£’000
Group
Unrestricted funds
Unrealised gains/(losses)
Financial investments
Property investments		 –
(166)
(166)
2
2
4
–
263
263
–
66
66
–
97
97
2
68
70
Realised gains
Financial investments
Property investments		 –
290
290
–
132
132
–
–
–
–
422
422
–
–
–
Other gains 6
–
6
19
–
19
Total gains
Financial investments
Property investments
Other		 –
124
124
2
2
4
–
395
395
–
66
66
6
–
6
19
–
19
6
519
525
21
68
89
Endowment funds
Unrealised gains/(losses)
Financial investments
Property investments		 22,993
–
22,993
124,819
–
124,819
38,017
–
38,017
(2,827)
–
(2,827)
61,010
–
61,010
121,992
–
121,992
Realised gains/(losses)
Financial investments
Property investments		 21,171
–
21,171
42,239
–
42,239
(6,710)
–
(6,710)
–
–
–
14,461
–
14,461
42,239
–
42,239
Other gains/(losses) (864)
–
(864)
(1,537)
–
(1,537)
Total gains/(losses)
Financial investments
Property investments
Other		 44,164
–
44,164
167,058
–
167,058
31,307
–
31,307
(2,827)
–
(2,827)
(864)
–
(864)
(1,537)
–
(1,537)
74,607
–
74,607
162,694
–
162,694
Total funds
Total gains/(losses)
Financial investments
Property investments
Other		 44,164
124
44,288
167,060
2
167,062
31,307
395
31,702
(2,827)
66
(2,761)
(858)
–
(858)
(1,518)
–
(1,518)
74,613
519
75,132
162,715
68
162,783

76

Guy’s and St Thomas’ Foundation Annual Report and Financial Statements 2021/22

Company number: 9341980

Notes to the financial statements

10. Fixed and current asset investments (cont.)

10.4. Subsidiary undertakings

The Foundation owns 100% of the following subsidiary undertakings.

GSTC Property Investments Limited (registered in England and Wales number 7369879). The principal activity of this company is investment in land and buildings with long-term development potential. The company made a profit of £21,412,159 for the year ended 31 March 2022 and its net assets at that date amounted to £42,207,070. Its accounts have been consolidated into the Group accounts. The Foundation’s investment in this subsidiary undertaking has been valued at the net asset value and is included in direct property investments in the Foundation’s accounts.

GSTC Health Innovations Limited (registered in England and Wales number 6852696). The principal activities of this company are investment in healthcare technology innovations arising out of King’s Health Partners (and the wider entrepreneurial community in Lambeth and Southwark) and commercialisation of these innovations. The company made a loss of £4,514 for the year ended 31 March 2022 and its net assets at that date amounted to £3,502,352. Its accounts have been consolidated into the Group accounts. The Foundation’s investment in this subsidiary undertaking has been valued at the original cost of the share capital purchased of £1,497,434.

GSTC Property Developments Limited (registered in England and Wales number 6861110). The principal activity of the company is to undertake commercial and trading activities for the benefit of Guy’s and St Thomas’ Foundation or any linked charity of which the Foundation is trustee. The company made a profit of £34,756 for the year ended 31 March 2022. Its net liabilities at that date were £13,667. The Foundation’s investment in this subsidiary undertaking has been valued at the original cost of the share capital purchased of £1.

Summary accounts for the active subsidiaries are shown below:

GSTC Property Investments Ltd

Summary Income and Expenditure account for the year ended 31 March 2022

for the year ended 31 March 2022
£
Gross income
Expenditure		 188,911
(878,573)
Net expenditure
Investment gains		 (689,662)
22,101,821
Netprofit 21,412,159

Summary Balance Sheet as at 31 March 2022

Summary Balance Sheet
as at 31 March 2022
£
Tangible fixed assets
Net current assets		 35,268,432
24,981,928
Total assets less net current liabilities
Creditors due after one year		 60,250,360
(18,043,290)
Net assets and shareholder’s funds 42,207,070

GSTC Health Innovations Ltd

Summary Income and Expenditure account for the year ended 31 March 2022

for the year ended 31 March 2022
£
Gross income 292
Expenditure (67,486)
Net expenditure (67,194)
Net investment gains 62,680
Netprofit 4,514

Summary Balance Sheet as at 31 March 2022

Summary Balance Sheet
as at 31 March 2022
£
Tangible fixed assets
Net current assets		 3,263,323
239,029
Total assets less net current liabilities
Net assets and shareholder’s funds		 3,502,352
3,502,352

GSTC Property Developments Ltd

Summary Income and Expenditure account for the year ended 31 March 2022

for the year ended 31 March 2022
£
Gross income
Expenditure
Net expenditure		 220,411
(185,655)
34,756
Netprofit 34,756

Summary Balance Sheet as at 31 March 2022

Summary Balance Sheet
as at 31 March 2022
£
Tangible fixed assets
Net current assets
Total assets less net current liabilities
Creditors due after one year		 –
282,663
282,663
(296,330)
Net liabilities and shareholder’s funds (13,667)

77

Guy’s and St Thomas’ Foundation Annual Report and Financial Statements 2021/22

Company number: 9341980

Notes to the financial statements

11. Debtors

11. Debtors
2022
2021
Unrestricted
Funds
£’000
Restricted
Funds
£’000
Endowment
Funds
£’000
Total
Funds
£’000
Unrestricted
Funds
£’000
Restricted
Funds
£’000
Endowment
Funds
£’000
Total
Funds
£’000
Group
Debtors falling due within one year
Debtors falling due after one year		 1,153
464
27,213
28,830
496
655
6,095
7,246
200
–
–
200
350
–
–
350
1,353
464
27,213
29,030
846
655
6,095
7,596
Company
Debtors falling due within one year
Debtors falling due after one year		 1,157
464
27,190
28,811
553
655
6,052
7,260
200
–
3,860
4,060
350
–
2,884
3,234
1,357
464
31,050
32,871
903
655
8,936
10,494

11.1 Debtors falling due within one year

2022
2021
Unrestricted
Funds
£’000
Restricted
Funds
£’000
Endowment
Funds
£’000
Total
Funds
£’000
Unrestricted
Funds
£’000
Restricted
Funds
£’000
Endowment
Funds
£’000
Total
Funds
£’000
Group
Prepayments
Accrued income
Due from sale of investments
Other debtors		 321
–
303
624
237
–
53
290
4
152
167
323
2
203
12
217
–
–
23,685
23,685
–
–
567
567
828
312
3,058
4,198
257
452
5,463
6,172
1,153
464
27,213
28,830
496
655
6,095
7,246
Company
Prepayments
Accrued income
Amount due from subsidiary undertakings
Due from sale of investments
Other debtors		 321
–
303
624
237
–
53
290
2
152
198
352
–
203
34
237
6
–
–
6
59
–
–
59
–
–
23,685
23,685
–
–
567
567
828
312
3,004
4,144
257
452
5,398
6,107
1,157
464
27,190
28,811
553
655
6,052
7,260

78

Guy’s and St Thomas’ Foundation Annual Report and Financial Statements 2021/22

Company number: 9341980

Notes to the financial statements

11. Debtors (cont.)

11.2. Debtors falling due after one year

2022
2021
Unrestricted
Funds
£’000
Restricted
Funds
£’000
Endowment
Funds
£’000
Total
Funds
£’000
Unrestricted
Funds
£’000
Restricted
Funds
£’000
Endowment
Funds
£’000
Total
Funds
£’000
Group
Charitable loans		 200
–
–
200
350
–
–
350
200
–
–
200
350
–
–
350
Company
Loans to subsidiary undertakings
Charitable loans		 –
–
3,860
3,860
–
–
2,884
2,2884
200
–
–
200
350
–
–
350
200
–
3,860
4,060
350
–
2,884
3,234

The loans to subsidiary undertakings comprise the following:

(i) A loan of £1,448,000 to GSTC Property Investments Ltd, drawn down under a facility of £9,000,000 secured by a fixed and floating charge over the assets of that company, bearing interest at a rate of 4.5% per annum, and repayable no later than 9 December 2034 or earlier at the option of that company.

(ii) A loan of £2,115,000 to GSTC Property Investments Ltd drawn down under a facility £30,000,000 secured by a fixed and floating charge over the assets of that company, bearing interest at a rate of 2.75% per annum, and repayable no later than 31 December 2024 or earlier at the option of that company.

(iii) A loan of £296,000 to GSTC Property Developments Ltd drawn down under a facility of £1,750,000 secured by a fixed and floating charge over the assets of that company, bearing interest at a rate of 2% per annum, and repayable no later than 29 November 2023 or earlier at the option of that company.

12. Inter-fund loan

Within the unrestricted fund, the Foundation’s policy is to closely match the total of grant liabilities and the balance on the distribution account with cash or cash equivalents. In order to enable the unrestricted fund to obtain a better return on this cash than would be available in the money market without incurring additional market risk, on 9 April 2013 the unrestricted fund lent £50,000,000 to the endowment fund for an initial term of 5 years, and with effect from 9 April 2018 the facility was renewed for a further 5 years with an upper loan limit of £65,000,000. Repayments of any amount can be requested by the unrestricted fund or the endowment fund at any time. The unrestricted fund receives interest on this loan at a rate of 12 month sterling LIBOR (SONIA from January 2022) + 0.8% fixed annually on the anniversary of the commencement of the loan which is paid by transfers from the endowment fund to the unrestricted fund. At 31 March 2022 the balance outstanding was £65,000,000 and during the year the balance fluctuated between this amount and the balance outstanding at 31 March 2022 of £65,000,000, in accordance with the cash requirements of the unrestricted fund.

79

Guy’s and St Thomas’ Foundation Annual Report and Financial Statements 2021/22

Company number: 9341980

Notes to the financial statements

13. Cash and short-term deposits

2022
2021
Unrestricted
Funds
£’000
Restricted
Funds
£’000
Endowment
Funds
£’000
Total
Funds
£’000
Unrestricted
Funds
£’000
Restricted
Funds
£’000
Endowment
Funds
£’000
Total
Funds
£’000
Group
Short-term deposits within one month
Cash at bank and in hand		 6,343
21,238
–
27,581
5,613
21,949
–
27,562
10,204
(258)
13,596
23,542
4,789
1
15,353
20,143
16,547
20,980
13,596
51,123
10,402
21,950
15,353
47,705
Company
Short-term deposits within one month
Cash at bank and in hand		 6,343
21,238
–
27,581
5,613
21,949
–
27,562
9,961
(258)
13,284
22,987
4,765
1
15,229
19,995
16,304
20,980
13,284
50,568
10,378
21,950
15,229
47,557

14. Other creditors falling due within one year

2022
2021
Unrestricted
Funds
£’000
Restricted
Funds
£’000
Endowment
Funds
£’000
Total
Funds
£’000
Unrestricted
Funds
£’000
Restricted
Funds
£’000
Endowment
Funds
£’000
Total
Funds
£’000
Group
Purchase creditors
Accruals
Deferred investment property income
Tax and social security
Pension creditors
Other creditors		 6,124
–
47
6,171
1,621
–
89
1,710
1,530
–
1,785
3,315
67
–
2,871
2,938
152
–
3,082
3,234
152
–
1,846
1,998
276
–
–
276
273
–
–
273
102
–
–
102
68
–
–
68
2,902
3,288
21,527
27,717
718
2,890
–
3,608
11,086
3,288
26,441
40,815
2,899
2,890
4,806
10,595
Company
Purchase creditors
Accruals
Deferred investment property income
Tax and social security
Pension creditors
Other creditors		 6,124
–
–
6,124
1,622
–
–
1,622
1,530
–
1,363
2,893
67
–
2,861
2,928
152
–
3,076
3,228
152
–
1,836
1,988
276
–
–
276
275
–
–
275
102
–
–
102
68
–
–
68
2,903
3,288
21,529
27,720
717
2,888
–
3,605
11,087
3,288
25,968
40,343
2,901
2,888
4,697
10,486

Deferred investment property income represents rent received in advance of the period to which it relates and generally arises where, under the terms of a property lease, rent is due to be paid in advance at the commencement of a quarterly or half-yearly rental period. For the years ended 31 March 2021 and 2022, no income was deferred for more than six months and all amounts included in deferred income at the end of each year were released to the statement of financial activities during the subsequent year.

15. Private placement loan

The private placement loan is a £60,000,000 loan advanced to the Foundation by way of a senior loan note issued on 21 December 2015. The loan bears interest at a fixed rate of 3.72% per annum and is repayable on 21 December 2045 unless previously repaid.

80

Guy’s and St Thomas’ Foundation Annual Report and Financial Statements 2021/22

Company number: 9341980

Notes to the financial statements

16. Unrestricted funds

16. Unrestricted funds
Balance
1 April
2021
£’000
Income
£’000
Expenditure
£’000
Transfers
£’000
Gains
and Losses
£’000
Balance
31 March
2022
£’000
Group
Programme-related investment funds
Charitable property fund
Health innovations investments fund		 20,074
–
–
(469)
263
19,868
6,718
–
–
768
(166)
7,320
Art collection fund
Other tangible fixed assets fund
Distribution account		 26,792
–
–
299
97
27,188
3,698
–
–
11
–
3,709
–
–
–
1,507
–
1,507
38,356
36,551
(41,716)
(5,417)
428
28,202
68,846
36,551
(41,716)
(3,600)
525
60,606
Company
Programme-related investment funds
Charitable property fund
Health innovations investments fund		 20,074
–
–
(469)
(263)
19,868
4,674
–
–
–
880
5,554
Art collection fund
Other tangible fixed assets fund
Distribution account		 24,748
–
–
–
1,143
25,422
3,698
–
–
11
–
3,709
–
–
–
1,507
–
1,507
38,387
36,560
(41,655)
(4,649)
(681)
27,962
66,833
36,560
(41,655)
(3,600)
462
58,600
Balance
1 April
2021
£’000
Income
£’000
Expenditure
£’000
Transfers
£’000
Gains
and Losses
£’000
Balance
31 March
2022
£’000
Group
Programme-related investment funds
Charitable property fund
Health innovations investments fund		 20,008
–
–
–
66
20,074
5,322
–
–
(9)
1,405
6,718
Art collection fund
Distribution account		 25,330
–
–
(9)
1,471
26,792
3,719
–
–
3
(24)
3,698
39,763
32,763
(29,895)
(2,893)
(1,382)
38,356
68,812
32,763
(29,895)
(2,899)
65
68,846
Company
Programme-related investment funds
Charitable property fund
Health innovations investments fund		 20,008
–
–
–
66
20,074
3,067
–
–
1,525
82
4,674
Art collection fund
Distribution account		 25,330
–
–
1,525
148
24,748
3,719
–
–
3
(24)
3,698
39,999
32,766
(29,891)
(4,427)
(60)
38,387
69,048
32,766
(29,891)
(2,899)
64
66,833

The distribution account represents the free reserves of the Foundation.

81

Guy’s and St Thomas’ Foundation Annual Report and Financial Statements 2021/22

Company number: 9341980

Notes to the financial statements

17. Restricted funds

17. Restricted funds
Balance
1 April
2021
£’000
Income
£’000
Expenditure
£’000
Transfers
£’000
Balance
31 March
2022
£’000
Group and Company
Evelina Children’s Hospital funds
Guy’s Hospital Cancer fund
Other restricted funds
St Thomas’ Lupus Trust Fund
LFRUPA
Samaritan Fund
Next Generation Nightingale Fund
Hunt Legacy for Dialysis Machines
Long Covid Research
Department of Nuclear Medicine Fund
Directorate of Infectious Disease
Academic Cardiology Fund
St John’s Hospital
Other funds		 3,211
2,175
(1,613)
–
3,773
3,272
1,935
(2,309)
–
2,898
1,115
57
(33)
–
1,139
424
3
(105)
–
322
102
148
(24)
–
226
265
–
(34)
–
231
200
–
–
–
200
–
701
(529)
–
172
190
11
(37)
–
164
154
–
(12)
–
142
212
–
(86)
–
126
120
–
(7)
–
113
1,826
888
100
(1,206)
1,608
Unapportioned costs 11,091
5,918
(4,689)
(1,206)
11,114
–
–
(4,806)
4,806
–
11,091
5,918
(9,495)
3,600
11,114
Balance
1 April
2020
£’000
Income
£’000
Expenditure
£’000
Transfers
£’000
Balance
31 March
2021
£’000
Group and Company
Evelina Children’s Hospital funds
Guy’s Hospital Cancer funds
Other restricted funds
St Thomas’ Lupus Trust Fund
LFRUPA
Next Generation Nightingale Fund
Academic Cardiology Fund
Hunt Legacy for Dialysis Machines
Department of Nuclear Medicine Fund
Directorate of Infectious Disease
St John’s Hospital
Samaritan Fund
Guy’s Hospital Nurses League
Other funds		 2,264
3,300
(2,104)
(249)
3,211
2,016
2,358
(1,102)
–
3,272
794
399
(78)
–
1,115
331
92
1
–
424
286
–
(21)
–
265
212
–
–
–
212
–
200
–
–
200
195
18
(23)
–
190
104
50
–
–
154
259
101
(240)
–
120
278
113
(289)
–
102
124
54
(89)
–
89
1,923
1,886
(1,001)
(1,071)
1,737
Unapportioned costs 8,786
8,571
(4,946)
(1,320)
11,091
–
–
(4,219)
4,219
–
8,786
8,571
(9,165)
2,899
11,091

A full list of all financial transactions on restricted funds is available on request from the Foundation. There were no other gains or losses.

82

Guy’s and St Thomas’ Foundation Annual Report and Financial Statements 2021/22

Company number: 9341980

Notes to the financial statements

17. Restricted funds (cont.)

Details of material funds at 31 March 2022:

----- Start of picture text -----
Name of fund Description of the nature and purpose of each fund
The Evelina Children’s For the benefit of the health and wellbeing of children and families accessing children’s services at the Guy’s
Hospital Appeal and St Thomas’ NHS Foundation Trust.
Integrated Cancer Centre Fund To support the new integrated cancer centre.
St Thomas’ Lupus Trust Fund To support lupus research and patient care.
LFRUPA To benefit the Lane-Fox Respiratory Unit.
Samaritan Fund To benefit patients in need of financial and other assistance.
Next Generation Nightingale Fund To support the Next Generation Nightingale Project.
Masterstroke Polycythaemia To support polycythaemia research.
Hunt Legacy for Dialysis Machines To support Hunt legacy for dialysis machines.
Long Covid Research To support long Covid research.
Department of Nuclear Medicine Fund To support research and departmental activities of the Department of Nuclear Medicine.
Directorate of Infectious Disease To benefit Directorate of Infection.
Academic Cardiology Fund To support education and research related to cardiology.
St John’s Hospital To benefit the St. John’s Institute of Dermatology.
----- End of picture text -----

18. Endowment funds

18. Endowment funds
Balance
1 April
2021
£’000
Income
£’000
Expenditure
£’000
Transfers
£’000
Gains
and Losses
£’000
Balance
31 March
2022
£’000
Group
Permanent endowments
Guy’s and St Thomas’ Samaritan Fund
The Leak Trust
The Guy’s and St Thomas’ Patients Amenities Fund
S J Lam Legacy Fund
Dr Reginald Curle Trust		 1,841
(74)
(23)
–
60
1,804
1,438
(57)
(18)
–
44
1,407
1,335
(53)
(16)
–
40
1,306
860
(34)
(10)
–
22
838
504
(22)
(6)
–
18
494
Expendable endowment
General fund		 5,978
(240)
(73)
–
184
5,849
874,531
(13,302)
(10,898)
–
74,423
924,754
880,509
(13,542)
(10,971)
–
74,607
930,603
Company
Permanent endowments
Guy’s and St Thomas’ Samaritan Fund
The Leak Trust
The Guy’s and St Thomas’ Patients Amenities Fund
S J Lam Legacy Fund
Dr Reginald Curle Trust		 1,841
(74)
(23)
–
60
1,804
1,438
(57)
(18)
–
44
1,407
1,335
(53)
(16)
–
40
1,306
860
(34)
(10)
–
22
838
504
(22)
(6)
–
18
494
Expendable endowment
General fund		 5,978
(240)
(73)
–
184
5,849
874,565
(13,286)
(10,243)
–
73,733
924,769
880,543
(13,526)
(10,316)
–
73,917
930,618

83

Guy’s and St Thomas’ Foundation Annual Report and Financial Statements 2021/22

Company number: 9341980

Notes to the financial statements

18. Endowment funds (cont.)

18. Endowment funds(cont.)
Balance
1 April
2020
£’000
Income
£’000
Expenditure
£’000
Transfers
£’000
Gains
and Losses
£’000
Balance
31 March
2021
£’000
Group
Permanent endowments
Guy’s and St Thomas’ Samaritan Fund
The Leak Trust
The Guy’s and St Thomas’ Patients Amenities Fund
S J Lam Legacy Fund
Dr Reginald Curle Trust		 1,441
(58)
(1)
–
459
1,841
1,125
(45)
–
–
358
1,438
1,044
(42)
–
–
333
1,335
665
(16)
–
–
211
860
401
(26)
–
–
129
504
Expendable endowment
General fund		 4,676
(187)
(1)
–
1,490
5,978
732,673
(12,660)
(6,686)
–
161,204
874,531
737,349
(12,847)
(6,687)
–
162,694
880,509
Company
Permanent endowments
Guy’s and St Thomas’ Samaritan Fund
The Leak Trust
The Guy’s and St Thomas’ Patients Amenities Fund
S J Lam Legacy Fund
Dr Reginald Curle Trust		 1,441
(58)
(1)
–
459
1,841
1,125
(45)
–
–
358
1,438
1,044
(42)
–
–
333
1,335
665
(16)
–
–
211
860
401
(26)
–
–
129
504
Expendable endowment
General fund		 4,676
(187)
(1)
–
1,490
5,978
732,676
(12,539)
(6,388)
–
160,816
874,565
737,352
(12,726)
(6,389)
–
162,306
880,543

In October 2014 the Trustees resolved (i) to adopt a total return approach to investment to the five permanent endowment funds shown above pursuant to the power contained in the Charities Act 2011, and (ii) that the provisions in the Charities (Total Return) Regulations 2013 would regulate the Trustees’ use of the total return approach on an ongoing basis. The Foundation received advice from its legal advisors Withers LLP with regard to the use of the power. Consequently, effective from 1 January 2015, these funds are invested to maximise total return and the Foundation aims to release 4% of their value annually for charitable spending in accordance with their objects by way of transfers of portions of the unapplied total return to income of appropriate restricted funds. Until the power to make transfers is exercised, the unapplied total return remains invested as part of the relevant permanent endowment.

The table below sets out the dates that the values of the initial endowments (or the valuations at the nearest dates for which the information is available) were established. The initial values of the unapplied total return (in practice, the capital profits arising from the investment of the endowments) were established as at 31 December 2015.

Guy’s and St Thomas’ Samaritan Fund 31 March 2004 The Leak Trust 31 March 1998 The Guy’s and St Thomas’ Patients Amenities Fund 31 March 2001 S J Lam Legacy Fund 31 March 2013 Dr Reginald Curle Trust 31 March 1998

84

Guy’s and St Thomas’ Foundation Annual Report and Financial Statements 2021/22

Company number: 9341980

Notes to the financial statements

18. Endowment funds (cont.)

The note below shows the opening unapplied total return and fund transfer in the year.

Permanent endowments – statement of total return

Trust for Unapplied Total
investment total return endowments
Group and Company £’000 £’000 £’000
At 1 April 2021
Gift components of the permanent endowments 2,329 – 2,329
Unapplied total return – 3,649 3,649
2,329 3,649 5,978
Movements during the period
Investment return
Realised and unrealised losses – 184 184
– 184 184
Allocated to income during theperiod – (313) (313)
Net movements during theperiod – (129) (129)
At 31 March 2022
Gift components of the permanent endowments
Unapplied total return		 2,329
–		 –
3,520		 2,329
3,520
Balance at 31 March 2022 2,329 3,520 5,849

Details of material funds at 31 March 2022:

----- Start of picture text -----
Name of fund Description of the nature and purpose of each fund
Guy’s and St Thomas’ For the relief of patients and former patients of the hospitals operated by the Guy’s and St Thomas’ NHS Foundation
Samaritan Fund Trust, preference being given to those in need of financial assistance.
The Leak Trust For medical research.
Guy’s and St Thomas’ Patients For the benefit of in or out patients who are or have been treated at hospitals operated by the Guy’s and St Thomas’
Amenities Fund NHS Foundation Trust.
S J Lam Legacy Fund To provide bursaries for medical students.
Dr Reginald Curle Trust For providing extra comforts for the patients at hospitals operated by the Guy’s and St Thomas’ NHS Foundation Trust;
and for the provision of accommodation for the use of relations.
General Fund No restrictions on expenditure of income. Capital may be expended at Trustees’ discretion.
----- End of picture text -----

19. Gross transfers between funds

2022
2021
Unrestricted
Funds
£’000
Restricted
Funds
£’000
Endowment
Funds
£’000
Total
Funds
£’000
Unrestricted
Funds
£’000
Restricted
Funds
£’000
Endowment
Funds
£’000
Total
Funds
£’000
Group and Company
Restricted funds net support costs
Other transfers		 (4,806)
4,806
–
–
(4,219)
4,219
–
–
1,206
(1,206)
–
–
1,320
(1,320)
–
–
(3,600)
3,600
–
–
(2,899)
2,899
–
–

The transfer from unrestricted to restricted funds of £4,806,000 (2021: £4,219,000) represents the balance of the support costs incurred by the Foundation in administering the restricted funds after taking account of the interest income earned on restricted fund cash balances. Other transfers from restricted to unrestricted funds of £1,206,000 (2021: £1,320,000) represent the transfer of restricted donations for which no appropriate special purpose fund currently exists to support unrestricted grants which have objects that are aligned to the original restriction.

85

Guy’s and St Thomas’ Foundation Annual Report and Financial Statements 2021/22

Company number: 9341980

Notes to the financial statements

20. Trustee and connected person transactions

Trustee expenses reimbursed 2022
£’000
2021
£’000
–
–
2022
£’000
2021
£’000
–
–		 Trustees’ indemnity insurance
2022
£’000
2021
£’000
Travel and subsistence Trustees’ and officers’ liability 29
24
Number of Trustees receiving reimbursement

Trustees’ remuneration

No person received remuneration as a Trustee of Guy’s and St Thomas’ Foundation in either the current year or the previous year.

Transactions with Trustees or connected persons

During the year ended 31 March 2022 none of the Trustees, key members of the Foundation’s management or parties related to them has undertaken any material transactions with Guy’s and St Thomas’ Foundation.

Number of Trustees
2022
Number
2021
Number
Total number of Trustees 10
10

20.1. Other related parties

The Foundation owns 100% of the share capital of the following subsidiary companies, in which it had the following transactions:

GSTC Property Investments Ltd

The Foundation was owed £3,563,000 at 31 March 2022 (2021: £2,774,000), repayable as detailed in note 10.2. The Foundation earned interest and service charge of £186,000 for the year end 31 March 2022 (2021: £137,000). The Foundation received £nil donation during the year ended 31 March 2022 (2021: £nil).

GSTC Health Innovations Ltd

The Foundation was owed £5,000 at 31 March 2022 (2021: £59,000), repayable on demand. The Foundation earned service charge of £11,000 for the year end 31 March 2022 (2021: £10,000). The Foundation received £nil donation during the year ended 31 March 2022 (2021: £nil).

GSTC Property Developments Ltd

The Foundation was owed £296,000 at 31 March 2022 (2021: £110,000), repayable as detailed in note 10.2. The Foundation earned interest and service charge of £19,000 for the year end 31 March 2022 (2021: £5,000). The Foundation received £nil donation during the year ended 31 March 2022 (2021: £nil).

21. Capital commitments

There was no capital expenditure contracted or provided for at 31 March 2022 (2021: £nil).

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Guy’s and St Thomas’ Foundation Annual Report and Financial Statements 2021/22

Company number: 9341980

Notes to the financial statements

22. Operating leases

22.1 Operating lease income

The Foundation generates income from leasing out space within its investment properties. The future minimum lease payments receivable under non-cancellable operating leases are:

22.2 Operating lease commitments

The Foundation leases office space. The total future minimum lease payments under non-cancellable operating leases are:

2022
£’000
2021
£’000
9,672
9,462
30,771
34,764
198,194
203,173
238,637
247,399		 2022
£’000
2021
£’000
Within one year
After one year but within five years
After five years		 Within one year
After one year but within five years
After five years		 956
–
3,870
–
4,138
–
8,964
–

23. Contingent liabilities

The Foundation recovers part of the VAT incurred on investment advisory costs in accordance with its longstanding interpretation of applicable VAT legislation. A recent court decision involving an unrelated third party has created some uncertainty regarding this interpretation. Although the Foundation remains confident that the court’s decision does not apply to the Foundation’s circumstances, it is possible although not probable that a further determination may result in the Foundation being required to repay any VAT recovered on this basis over the preceding four years. As at 31 March 2022 the total amount of VAT that would be repayable was £185,000.

24. Company limited by guarantee

The Foundation is a company limited by guarantee of members and does not have a share capital. The liability of members is limited to £1.

87

Guy's and StThomas' Foundation Annual Report and Financial Statements 20￿/22 Appendix Guy's & St Thomas, Foundation 88

Guy’s and St Thomas’ Foundation Annual Report and Financial Statements 2021/22

This appendix relates to the section on our commitment to the environment on page 39. It provides an overview of the methodology used to report on our impact in line with Streamlined Energy and Carbon Reporting (SECR) guidance, as well as charts and tables displaying our energy usage.

Reporting methodology

The Foundation is committed to complying with all environmental legislation. This report discloses the information required by SECR guidance.

Energy consumption

SECR requires us to include, “as a minimum purchased electricity, natural gas and fuel for the purpose of transport”. The Foundation has covered these requirements by disclosing purchased electricity, natural gas and fuel used in personal/hire cars on business use (including fuel for which the organisation reimburses its employees following claims for business mileage).

Due to limitations in vehicle data, it has been assumed that all vehicles are ‘average sized diesel’ and the correct conversion factor applied. In accordance with SECR guidance, which states that “the party responsible for the consumption of energy should take the responsibility for reporting of it under this legislation”, all tenant direct consumption was excluded from this report. Below is a detailed description of how energy consumption data was collated:

1. Electricity: the Foundation provided utility invoices/bills and actual meter readings, collated into a utility data collection template created and issued to the client by Savills prior to the data collection period.

2. Natural gas: Only two properties use gas. The utility consumption data from invoices and bills was entered into a utility data collection template created and issued to the client by Savills prior to the data collection period.

3. Company vehicles: The Foundation does not have any company vehicles.

4. Expensed mileage: Fuel was purchased for business travel using employees’ vehicles. The Foundation has provided the total expensed mileage for the reporting period.

Data analysis

The Foundation used the following data analysis techniques:

5. Analysis of monthly consumption trends.

6. Comparison of consumption between data sources.

7. Communication with client and property managers to review and rationalise data.

89

Guy’s and St Thomas’ Foundation Annual Report and Financial Statements 2021/22

GHG emissions

The Foundation used an operational control approach to calculate its Scope 1 and 2 GHG emissions. Partial Scope 3 GHG emissions are included in this year’s reporting from business mileage claims. Emissions from the following energy sources have been calculated:

8. Scope 1: natural gas

9. Scope 2: purchased electricity

10. Scope 3: expensed mileage

At the time of writing this report, Q1 2022 electricity consumption data for Francis House was not yet available from the supplier. Therefore 2020 data was used for completeness.

The methodology used to calculate emissions followed guidance from the revised edition of the GHG Protocol Corporate Accounting and the Reporting Standard and the UK Government Guidance on SECR. Scope 2 GHG emissions have been calculated using location-based conversion factors which reflect the average emissions intensity of grids on which energy consumption occurs. Location-based GHG emissions were calculated using conversion factors from the UK Government’ Department for Business, Energy and Industrial Strategy (BEIS) Conversion Factors for Company Reporting for the respective reporting period.

The Foundation applied a standardised intensity ratio to allow transparent reporting expressed as CO2e emissions per net lettable floor area (sq ft).

The Foundation has an extensive portfolio of properties and land located across London and the South of England, ranging from mixed use offices, retail and leisure to student accommodation and tenanted farms. The portfolio comprises a total area of 666,000 sq ft.

We are striving to go beyond mandatory regulations and are developing our ESG strategy, carbon net zero journey and minimum standards document for all leased properties to ensure the objectives and targets of the strategy are applied in all properties, whether leased or owned.

As the first year of complete reporting, this will become the baseline year for our ESG and carbon net zero strategy. In total, 178.83 tonnes of carbon dioxide equivalent (CO2e) are emitted directly and indirectly from the properties under landlord control in the portfolio.

Energy consumption is detailed in the table and charts below. Electricity makes up the largest proportion of consumption (767,000kWh), and business miles the smallest (240kWh). Electricity represents 89.87% of all energy consumed, gas 10.11% and transport only 0.03%.

Energy consumption for the full year 2021/22

----- Start of picture text -----
Energy source Unit FY 2021/22
Natural gas kWh 86,000
Electricity kWh 767,000
Transport expensed miles kWh 240
Total kWh 853,240
----- End of picture text -----

90

Guy’s and St Thomas’ Foundation Annual Report and Financial Statements 2021/22

Energy consumption in MWh FY 2021/22

----- Start of picture text -----
900
800
700
600
500
400
300
200
100
0
MWh MWh MWh
Natural gas Electricity Transport expensed miles
----- End of picture text -----

Energy consumption FY 2021/22

----- Start of picture text -----
0.03% 10.11%
Natural gas MWh
Electricity MWh
Transport expensed
miles MWh
89.87%
----- End of picture text -----

GHG emissions from energy consumption

----- Start of picture text -----
Emissions Unit FY 2021/22
Scope 1 tCO2e 15.81
Scope 2 (location-based) tCO2e 163.48
Scope 3 (expensed business miles) tCO2e 0.06
Total (location-based) tCO2e 179.35
----- End of picture text -----

Intensity metric

----- Start of picture text -----
|||| |---|---|---| |Measure|Unit|FY 2021/22| |GHG emissions (location-based)|kg CO2e/sq ft|0.2685|

----- End of picture text -----

91

Guy’s and St Thomas’ Foundation Annual Report and Financial Statements 2021/22

Guy’s and St Thomas’ Foundation

The Grain House 46 Loman Street London SE1 0EH

gsttfoundation.org.uk @GSTTFoundation

Registered Charity No. 1160316. Company limited by guarantee.

Registered in England and Wales No. 9341980.

92

Investing in a healthier society