Annual report & accounts 2022–23 **UNIVERSITY COLLEGE LONDON HOSPITALS CHARITY** 



**----- Start of picture text -----**<br>
Supporting patients, staff and research<br>PATIENT AND PUBLIC INVOLVEMENT<br>EDI STRATEGY<br>HLH BIOBANK<br>BALINT GROUPS FOR CLINICIANS<br>PATIENT DATA TRANSFORMING CARE<br>HARDSHIP FUND<br>LONG COVID<br>KEEPING YOUNG PEOPLE SAFE<br>ENVIRONMENTALLY FRIENDLY SURGERY<br>CMV SCREENING<br>ADVANCING SPEECH AND LANGUAGE THERAPY<br>YOUTH VOLUNTEERING<br>LISTENING TO OUR LOCAL COMMUNITIES<br>HEALTH ACADEMY<br>EXEMPLAR ADMINISTRATION PROGRAMME<br>KEEPING STAFF SAFE<br>**----- End of picture text -----**<br>


**uclhcharity.org.uk** 



_Rosannah Dawood, head of fundraising, with Anthony Linklater, matron at the Royal National ENT and Eastman Dental Hospitals at the Royal Parks 2022_ Photographer: Adam Scott, 2022 



## **SUPPORTING PATIENTS, STAFF AND RESEARCH** 

Our mission is to improve the lives of patients at UCLH 


**----- Start of picture text -----**<br>
2 2 2 3<br>OUR YEAR   £40.5M £21.2M<br>IN NUMBERS<br>Total income   Total expenditure<br>(see p19)<br>before provisions<br>**----- End of picture text -----**<br>


## **CONTENTS** 

## **OVERVIEW** 

- **02** Message from our Chairman 

- **03** About us 

- **04** Our trustees 

- **05** Our future priorities 

## **OUR GRANTS** 

- **06** Our year in grants 

- **08** Our year in impact 

- **10** Supporting patient care 

- **11** Supporting staff 

- **12** Supporting research and innovation 

- **13** Supporting the local community 

## **OUR SUPPORT** 

- **14** Philanthropy 

- **16** Fundraising 

## **TRUSTEES’ REPORT** 

## **FINANCIAL STATEMENTS** 

- **18** Strategic report and financial review 

   - **28** Consolidated statement of financial activities 

- **22** Structure, governance **29** Charity only statement and management of financial activities 

- **24** Statement of trustees’ **30** Consolidated balance responsibilities sheet 

   - **31** Charity only balance sheet 

- **25** Independent auditor’s report to the members 

- **32** Consolidated statement of cash flows 

- **33** Notes to the accounts 

- **52** Reference and administrative information 

UCLH CHARITY ANNUAL REPORT & ACCOUNTS 2022–23 **01** 



## Chairman’s message 


**----- Start of picture text -----**<br>
Chairman’s message<br>Lord Hemphill<br>Chairman<br>Hospital charities have a key role to<br>play in providing the ‘over and above’<br>NHS provision, funding projects and<br>initiatives that make our hospitals<br>better places to be treated, and to<br>work in. In turbulent times, this support<br>is ever more important.<br>**----- End of picture text -----**<br>



**2022/23 has been a challenging year in many ways, and the NHS is no exception.** One of our best loved institutions has faced a perfect storm of exhausted staff, industrial action, record waiting lists and increased levels of violence and aggression from the general public, who according to the British Social Attitudes survey in March 2023, is the unhappiest it has ever been with the NHS. 

But UCLH has continued to thrive. UCLH was ranked in the top 10 for neurology, neurosurgery and urology in the 2022 annual Newsweek release of the best specialist hospitals in the world. The National Inpatient Survey saw inpatients rate UCLH 8.5 out of 10, the best in London. Finally, UCLH was voted the top trust to work at in England in the NHS Staff survey. We would like to congratulate the Trust on these significant 

achievements, especially at a time of considerable challenge. 

This year we have focused efforts on helping staff. From the ‘Treat me with kindness’ campaign to help prevent violence and aggression towards staff, to the Be Well wellbeing initiative, and to the hardship fund which will provide financial assistance for staff in need during the cost of living crisis, our funding helps makes UCLH a better place to work. 

We are delighted to share the success of the Hemophagocytic Lymphohistiocytosis (HLH) service. Our funding helped establish research into a disease about which little is known, which has, in turn, attracted further funding from the Medical Research Council. This is a great example of how a hospital charity can provide seed funding that can grow into something bigger and life changing for patients, not just at UCLH, across the NHS. 

We have also supported innovative projects which will shape future services, like environmental mapping of knee replacements, one of the most commonly performed surgeries, to 

identify where carbon savings can be made, and the Health Academy, which will help manage workforce issues by training staff to work across departments. 

Historically, we have supported work ‘beyond the four walls’ of UCLH reaching out to our local community, such as the homeless project which has developed into Pathway, a nationwide charity. Our funding of the extended Redthread service, and the outreach work at the Brandon Centre, will help young people at risk of youth violence access the support they need, and avoid future harm and hospital visits. We are proud to be part of such progressive projects. 

The NHS celebrated 75 years in July 2023. As we look back with considerable pride, we can look forward to supporting UCLH as it evolves and responds to the health needs of generations to come. My fellow Trustees and I, with the support of the Charity team will continue our efforts to make a difference – to patients, staff and research – where and when it is most needed. 


**02** UCLH CHARITY ANNUAL REPORT & ACCOUNTS 2022–23 




## About us 

UCLH Charity is the official charity of University College London Hospitals NHS Foundation Trust (UCLH), one of the largest and most complex hospital trusts in the country. 

We provide grants for projects ‘over and above’ what UCLH can realistically provide. This includes improvement to clinical services, specialist equipment, enhancements to the environment and funding for pioneering research projects. We also support UCLH staff through training and development and wellbeing initiatives, so that they can provide the best possible care. 

_Read more about our work_ **uclhcharity.org.uk/does** 

## **Our history** 

## **About UCLH** 

## **Our strategy** 

## 

Our mission to support patient care at UCLH is delivered by four strategic aims: 

- UCLH is made up of the following hospitals: •  University College Hospital (incorporating the Elizabeth Garrett Anderson Wing, the Grafton Way Building, the Macmillan Cancer Centre, UCH at Westmoreland Street and the Institute of Sport, Exercise and Health) 

UCLH Charity can trace its roots back to 1745. The present day charity was established as a result of several restructures and mergers. In April 2000 three separate charities – UCH Special Trustees, UCLH NHS Charity and Middlesex Hospital Special Trustees – merged to become UCLH Charity. In April 2017, we became an independent charity regulated by the Charity Commission. 

   - **1** Ensure that the charity is run efficiently by knowledgeable trustees and effective staff, adhering to good governance, guided by the strategic direction of UCLH 

- Hospital for Tropical Diseases 

   - **2** Optimise capital through the investment strategy 

- National Hospital for Neurology and Neurosurgery at Queen Square and Cleveland Street 

   - **3** Optimise income by investing in commercial opportunities and property 

- The Royal London Hospital for Integrated Medicine 

   - **4** Award grants that go ‘over and above’ NHS provision in line with strategic priorities at UCLH 

- The Royal National ENT and Eastman Dental Hospitals 

## **Our objectives** 

We support UCLH. Our work focuses on four objectives to improve life for patients: 

## **SUPPORTING PATIENT CARE** 

We support the Trust’s strategy to improve the patient experience at UCLH. All our activities are aimed at making patients’ lives better. 

## **TRAINING AND DEVELOPING STAFF** 

We provide funding for training and education to ensure that staff at UCLH are kept up-to-date with health care developments and are able to apply the latest clinical techniques to treat patients. 

## **ENVIRONMENT AND EQUIPMENT** 

We fund state-of-the-art equipment to enable UCLH to provide the best patient care. We also provide funding to make the hospital environment more pleasant for patients and visitors. 

## **ADVANCING RESEARCH** 

We fund a wide range of clinical research projects at UCLH which translate cutting- edge research and innovation into new and improved treatments for patients. 

UCLH CHARITY ANNUAL REPORT & ACCOUNTS 2022–23 **03** 



## Our trustees 

The trustees determine our strategic aims and assess the suitability of projects for the charity. Some have links within the NHS, while others have expertise in a wide range of fields including law and investments. 

_Read more about us_ **uclhcharity.org.uk/about** 


**Lord Hemphill** , chairman, has worked in investment management firms for over 40 years and also chairs the investment sub-committee. He serves as a trustee of charitable and family trusts and is chairman of the council at St. Mary’s School Ascot. 


**Dr Junaid Bajwa** is a practising GP, a nonexecutive director at UCLH and Chief Medical Scientist at Microsoft Research. He also holds academic posts at UCL, Harvard, & Stanford. He has a special interest in the use of technology and data to improve patient outcomes and delivering equitable impact, at scale. 


**Mr Nigel Keen** is a Fellow of the Institute of Chartered Accountants, and the Institute of Engineering and Technology. His career covered venture capital, industry and banking. He is the chairman of various health and technology organisations which include MedAccess Trust Limited and Deltex Medical Group Plc. 


## **Professor Ramani** 

**Moonesinghe OBE** is a Professor of peri-operative medicine at University College London and is a consultant in anaesthetics and critical care medicine at UCLH. She is NHS England’s national clinical director for critical and peri-operative care and Director of the NIHR Central London Patient Safety Research Collaboration based at UCLH/UCL. 


**Mr Adrian Parkhouse** is a partner at the law firm, Farrer & Co LLP. 

A commercial litigator, he has particular experience in the conduct of disputes related to art. He has chaired the IBA’s Art Heritage and Law Committee and served on the International Council of Museums Legal Committee. He now sits on the Ethics Committee of the Museums Association. 


**Prof Donald Peebles** is a Professor of Maternal Fetal Medicine in the UCL Institute for Women’s Health, Clinical Director of the London Maternity Network and he is national specialty advisor in obstetrics. He has a number of research interests that focus on improving the outcomes for women and their babies following complicated pregnancies. 


**Mr James Petit** joined the board of trustees in June 2021. He has over 30 years’ property investment and development experience. He was head of UK Real Estate at Deutsche Asset Management and managed diverse multinational teams and clients. He is a member of the property committee for the RC Diocese of Westminster. 


## **Prof Mervyn Singer** 

(trustee until 30 April 2023) is a Professor of Intensive Care Medicine at UCL and a National Institute Health Research Senior Investigator. He co-chaired the Sepsis Redefinitions International Task Force and led a UCL/UCLH collaboration with Mercedes Benz that developed a new breathing aid machine in the Covid-19 pandemic. 

**04** UCLH CHARITY ANNUAL REPORT & ACCOUNTS 2022–23 



**UCLH STRATEGY 2023-27** 

## Our future priorities 

We are pleased to be progressing the Bedford House project. This mixed-use development, located in Fitzrovia on Cleveland Street, on the site of the former Middlesex Hospital outpatients’ department, includes clinical space for UCLH, as well as residential and commercial units. 

New and existing clinical facilities will be located in this new development which is due to open in autumn/winter 2024. Once complete, it will provide a new home for the UCLH breast services, and additional MR imaging services on the ground floor and in the basement. 

The development will include the re-opening of the pedestrian passageway between Cleveland Street and Charlotte Street, as well as the creation of a new public square, which will be fully accessible to the local community. 



In 2023, UCLH published its four-year strategy which consisted of the following themes: 

- Providing high-quality patient care 

- Investing in the diverse workforce 

- Delivering worldleading research and innovation 

- Achieving excellent education and training 

- Improving value, productivity and sustainability 

- UCLH Charity will continue to support initiatives that align with the Trust’s strategy. 

## **NEW AREAS OF FUNDING** 

New projects are in the pipeline, the first being to integrate a new MRI technique called VERDICT into the standard reporting pathway for patients with suspected prostate cancer. This could avoid 90% of unnecessary biopsies, which translates to 450 procedures at UCLH each year. The second, is to create a sensory-friendly environment in the paediatric dentistry department to reduce anxiety and positively influence cooperation in children with autism during dental treatment. 

UCLH CHARITY ANNUAL REPORT & ACCOUNTS 2022–23 **05** 



## Our year in grants 

We allocate grants via a thorough application process. Applications are reviewed by a Trust team to ensure that they deliver benefits to patient care and are aligned with UCLH’s strategic priorities. 

## **ADVANCING SPEECH AND LANGUAGE THERAPY** 

## **LISTENING TO OUR LOCAL COMMUNITIES** 

Despite the wealth of patient feedback UCLH receives, the voices of the most vulnerable communities are least likely to be heard. The patient experience team will undertake a full-scale online research project to identify and hear from more people across Camden to enable a better understanding of the experience of local communities UCLH serves. 

We are funding a pilot of an advanced clinical academic speech and language therapist to support the acute speech and language therapy (SLT) team. The team works in specialist areas where best treatments for speech and swallowing issues remain to be determined. This role will deliver evidence-based clinical training, research skills development, and quality improvement to further greater engagement with research projects. 

## **ENVIRONMENTALLY FRIENDLY SURGERY** 

## **EXEMPLAR ADMINISTRATION PROGRAMME** 

As part of UCLH’s commitment to reach net zero carbon emissions by 2031, a team of UCLH anaesthetists is undertaking a highly detailed carbon mapping evaluation of one of the most commonly performed surgical procedures, a knee replacement. The team will work with colleagues to identify areas of environmental impact which will be targeted for action. 

The Exemplar Ward programme was designed by UCLH as a platform for continuous quality improvement supporting teams to deliver local quality improvement initiatives which are recognised through an accreditation system. Funding has been provided to develop the programme for administration teams, an integral and crucial part of delivery of world class care. 

## **PATIENT DATA TRANSFORMING CARE** 

The innovation team is working on a pilot project using patient data to improve surgical outcomes. Initial funding supported development of the technical infrastructure to enable patient data to be inputted into the electronic patient record. Further funding will enable testing of two new models; wearable technology for patients, linked to their own record and virtual group outpatient models for optimising patient health and fitness before and after surgery. 

## **PATIENT AND PUBLIC INVOLVEMENT** 

Our funding of a patient participation worker will help UCLH’s patient experience team reach one of its key quality objectives, to develop creative ways of involving patients to become active partners in service development. With the additional new role, the team will aim to improve the diversity of patient partners, develop better support mechanisms, and increase visibility of patient stories across UCLH. 

## **BALINT GROUPS FOR CLINICIANS** 

Balint Groups are an established way of managing and supporting staff experiencing difficult patient interactions. They use ordinary encounters and focus on clinicians’ reactions and emotions, while thinking about what might be going on for all involved. Funding will allow for implementation in critical care and haematology before wider roll out across UCLH. 

## **KEEPING YOUNG PEOPLE SAFE** 

In 2020 we funded the provision of the Youth Violence Intervention Programme by specialist youth charity Redthread at the Emergency Department at University College Hospital. Funding has been agreed to build on the success of this work to provide an enhanced model, offering additional holistic, personalised youth work support to a wider cohort of 11 – 19-year-olds from different departments across UCLH. 

**06** UCLH CHARITY ANNUAL REPORT & ACCOUNTS 2022–23 



## **YOUTH VOLUNTEERING** 

Our funding will extend the youth volunteering programme, which has seen 85-100 16–17-yearolds volunteering 3,700 plus hours each year. The programme will reach out to engage local communities, offer taster sessions to key stage 3 children aged 14+, continue the summer programme for 16–17-year-olds and offer virtual ‘inspiration sessions’ for young people under 25 to showcase careers in the NHS. 

## **KEEPING STAFF SAFE** 

A bid was submitted to support staff facing increasing levels of violence and aggression. The proposal includes more training, an internal campaign to raise awareness of available support and to emphasise the importance of reporting incidents and working with teams to understand, prevent/ mitigate risks related to violence and aggression. See page 11 for more information about this project. 

## **HEALTH ACADEMY** 

A collaboration between the UCL Division of Surgery - Faculty of Medical Sciences and UCLH Theatres and Anaesthesia, the new Health Academy will support the recruitment, retention and professional development of NHS staff with an emphasis on cross-skilling, enabling more resilience across the workforce. The UCLH-UCL joint vision will embrace new ways of working, spanning departments, avoiding historical professional boundaries. 

## **CMV SCREENING** 

Our funding will allow for a pilot study to assess the feasibility of implementing Cytomegalovirus (CMV) screening in the antenatal population at UCLH. CMV is one of the most common congenital infections affecting 0·67% of all livebirths globally and is the leading preventable cause of childhood hearing loss. Current recommendations in the UK do not allow for antenatal or newborn screening for CMV. This study will put UCLH at the centre of development in this area and could lead to development of a model for use across the wider NHS. 

## **HARDSHIP FUND** 

Funding has been made available to create a dedicated hardship fund to support staff experiencing a cost-ofliving hardship pressure or crisis. Managed through a specific criteria, the fund will be supported by a governance structure to ensure transparent and equitable awards, which will take the form of either cash grants or vouchers. 

## **EDI STRATEGY** 

We are supporting the development and implementation of the Equality, Diversity and Inclusion (EDI) strategy at UCLH. This includes staff engagement, management training, sharing good practice and bringing together other Trust-wide initiatives that link with EDI such as staff networks, civility and respect and violence and aggression. There is funding for three posts, to undertake this work. 

## **HLH BIOBANK** 

Funding was provided to develop the Hemophagocytic lymphohistiocytosis (HLH) service, to include a biobank to help gain a better understanding of HLH. Prevalence of HLH, though rare, is increasing, in part to the prevalence of the SARSCoV-2 virus. See page 12 for more details of the development of this service. 

## **LONG COVID** 

Our funding of a consultant will enable the long covid team to improve outcomes and maximise research opportunities for this unique cohort of patients. It will also enable UCLH to provide additional care and to develop a bespoke service for NHS staff affected by the condition. An estimated 2 million people across the UK are suffering from long COVID and, although progress in terms of treatments, has been made, more research is needed. 

UCLH CHARITY ANNUAL REPORT & ACCOUNTS 2022–23 

**07** 




## Our year in impact 

We’re here to support patients, staff and research. Here is a snapshot of how charitable funds have been used to make a difference throughout the last year at UCLH. 

> _Above: Professor Fares Haddad,_ **1,000 milestone of** _centre, with members of the trauma and orthopaedic team_ **robotic operations reached** 

The UCLH trauma and orthopaedics team reached a milestone of 1,000 operations on hips and knees using the Mako robot in December 2022. This was made up of 600 total knee replacements, 234 total hip replacements and 166 partial knee replacements. 

UCLH Charity provided funding for the installation of two state-of-the-art clinical robots at the Grafton Way Building when it opened in April 2021. 

## **Supporting UCLH at the Health Service Journal (HSJ) awards** 

We supported UCLH at the HSJ awards in which the Trust was shortlisted in the Trust of the Year and Digitising Patient Healthcare categories, the latter for the for the Charity-funded INFORM_us Hub. UCLH was ‘highly commended’ in the Trust of the Year category. 

_“ All our staff can feel proud of receiving this recognition because it is the contribution of each and every one of them that has made this achievement possible.”_ 

**David Probert,** _UCLH chief executive_ 


**08** UCLH CHARITY ANNUAL REPORT & ACCOUNTS 2022–23 




## **Celebrating excellence at UCLH** 

We fund the annual Celebrating Excellence awards to recognise the contribution and achievements of UCLH staff. 

In 2022, over 300 winners of the virtual 2020 and 2021 awards finally got together in person at a special gala dinner to celebrate. The 2022 awards saw doctor and TV presenter, Xand Van Tulleken, join UCLH chair, Julia Neuberger and chief executive, David Probert, presenting awards to the worthy winners. 

## **Long service awards** 

Each year staff who have worked at UCLH for over 25 years are recognised in a long service awards ceremony. This year, over 50 staff were recognised. 

_“ It is wonderful to see so many staff having worked with us for significant parts of their careers, reinforcing what a great place to work UCLH is. I’m delighted to recognise their achievements.”_ 

**David Probert,** _UCLH chief executive_ 



## **Champion volunteer** 

We are proud to support the UCLH volunteering service and were delighted to see Edward Egan recognised with a Platinum Champion award as part of The Queen’s Jubilee celebrations. Edward started volunteering at UCLH after becoming deaf and being a patient at the Royal National Ear, Nose and Throat Hospital. He became a front of house volunteer at the hospital so he could welcome people using British Sign Language. 

## **UCLH on film** 

Our funding of a videographer has enabled UCLH to develop an extensive library of films, providing information in an accessible format. In 2022/23 over 24 films were made, focusing on clinical areas such as long covid, lung cancer, prostate cancer, dementia and headache, as well as a series of films to support recruitment. The most watched film as of June 2023 is Treating Prostate Cancer, with expert Professor Mark Emberton, viewed 3,673 times. 


## **NHS arts apprentice** 

We’re proud to fund the only arts apprentice in the NHS. Current postholder Krystina Tyrtania was profiled as part of National Apprentice Week at UCLH. Krystina works with the arts and heritage team to provide a welcoming and uplifting environment for patients, visitors and staff. The varied programme includes exhibitions, events, workshops, performances, artist residencies and commissions – spanning art, music and dance. 



UCLH CHARITY ANNUAL REPORT & ACCOUNTS 2022–23 **09** 



## Supporting patient care 

We are here to support, enhance and improve patient experience. We are delighted to share how our funding of the ground-breaking Patient and Family Team is offering patients, their families and carers, and staff support in the critical care department at University College Hospital. 

## **Patient and Family Team** 

The pandemic brought about a radical change in how medicine was delivered.With high numbers of very sick patients and restricted visiting, patients, families and staff experienced stress and psychological trauma. The Family Liaison Team was set up in response to help keep patients and families connected, and to support staff. At the height of the pandemic, the Team was made up of around 70 people, including deployed staff and volunteers. 

Post pandemic, funding was sought to capture the ‘lessons learned’ from the creation of a dedicated Patient and Family Team. 

Two years on the team provides a service that is uniquely placed to identify, understand and respond to the needs of patients and families. Lead consultants Dr Anna Petsas and Dr Tim Bonnici, explain, _“The pandemic made_ 

_us think differently about how patients, relatives and staff feel about critical care, which is often a life changing event. The project funding provided us with space and time to understand how to continue to meet the holistic patient and family needs within the footprint of our existing critical care team. When we understand what patients and families really need, we can reduce healthcare inequalities, and improve outcomes, by signposting to services that can offer support. This can be anything from translation services to support from psychology and mental health teams”._ 

The team are leading the way in embedding this holistic way of working into critical care clinical practice.They are among the first to do so and are sharing learning with other trusts. 

_Left to right: Stephen Pearson, Dr Tim Bonnici and Dr Anna Petsas at the critical care unit at University College Hospital_ 

## **400** 

**nurses have attended listening events, facilitated by the patient and family team** 

_“ We are developing a culture where patients and families are our partners, fully informed, helping us to help them so that they can have the best possible outcomes.”_ 

- **Stephen Pearson,** _critical care clinical nurse specialist and Patient and Family Team lead nurse_ 

**10** UCLH CHARITY ANNUAL REPORT & ACCOUNTS 2022–23 




## Supporting staff 

As we continue to be in one of the most challenging periods in the NHS’ 75 year history, supporting staff remains a key priority. We are committed to providing funding for a wide range of projects that support staff wellbeing and development and make UCLH a great place to work. 


**Treat us with kindness campaign** 

In February 2023, UCLH launched a campaign to remind patients and visitors to treat staff with courtesy and kindness, with funding from UCLH Charity. 

This was part of a broader piece of work developed in response to the 2021 staff survey, which reported that 29.8 per cent of staff had personally experienced harassment, bullying or abuse at work from patients and service users, their relatives or other members of the public over the previous 12 months. 

_Campaign posters featured genuine staff members_ 

## **OTHER INITIATIVES FUNDED** 

- The UCLH spa – professionally qualified volunteer therapists offer a wide range of therapeutic treatments, for a nominal fee. 

**29.8% of staff had personally experienced harassment, bullying or abuse at work** 

Coping with aggression and abuse, which can occur face-to-face, via phone or by email, can be especially difficult for those who may be exhausted following the pandemic. 

- The Be Well campaign, which continues to co-ordinate a wide range of projects to provide mental, physical and wellbeing support to staff. This includes 170 teams who have accessed a ‘Joy at work’ grant, 150 wellbeing champions, the UCLH running club, bespoke wellbeing support for 80 teams, staff break room uplifts, expansion of Schwartz Rounds and cost of living support which has included free bike maintenance, free fruit Thursdays and tea and coffee provided in all break spaces across UCLH. 

A programme of work, which included a multi media campaign (posters, videos and social media featuring members of staff) alongside increased training and support in dealing with and reporting abusive and violent behaviour from patients and visitors, was developed. 

_“ Too often, staff are_ 

_confronted with violence and aggression from patients and members of the public, just for doing their job. We would like to thank all the staff who have volunteered to take part in this campaign.“_ 

These new initiatives build upon the extensive support already on offer to support staff at UCLH. 

- **David Probert,** _UCLH chief executive_ 

UCLH CHARITY ANNUAL REPORT & ACCOUNTS 2022–23 **11** 



## Supporting research and innovation 

We are proud to support the culture of innovation and improvement at UCLH, driven by a commitment to research and education. Our funding of the HLH biobank is an excellent example of this. 

## **HLH biobank** 

Hemophagocytic lymphohistiocytosis (HLH) is a complex condition which can cause tissue damage and multiple organ failure as a result of unrestrained activation of the immune system. Morbidity and mortality rates are high. Though rare, HLH is on the increase, in part linked to the prevalence of the SARS-CoV-2 virus. A crossspecialty, multi-disciplinary team at UCLH was developed to diagnose and treat patients with HLH and has become recognised as a national centre. 

In 2021, we provided a £117,000 grant in part to create a library 

_“ The funding from UCLH Charity was a complete game-changer, providing the springboard for the successful MRC award which will help us in our quest to try to understand HLH better and improve patient outcome.”_ 

**Dr Jessica Manson,** _consultant rheumatologist and HLH lead, UCLH_ 

of patient samples with matched clinical data (called a Biobank) to help gain a better understanding of the biological pathways that lead to HLH and to facilitate targeted treatment decisions and allow for the design of clinical trials. 

In nine months, the biobank recruited 27 patients and a national HLH research group has been awarded £1.2m by the Medical Research Council to establish UK HLH research, with UCLH/UCL leading the biobank/registry section of the project, alongside a developing basic science research programme in collaboration with UCL. 

## **x3** 

**Patient numbers have tripled over the last five years and mortality has fallen from 55% prior to the establishment of the mdt to 36% since it has been running** 

## **OTHER INITIATIVES FUNDED** 

- The development of a very successful Massive Open Online Course (MOOC) on the transfer of the critically unwell patient which has been endorsed by five international organisations. 

•  The UCLH Charity funded Centre for Nursing, Midwifery and Allied Health Professional-led Research (CNMAR) continues to go from strength to strength to support nurses, midwives and allied health professionals in developing world-class research. In collaboration with the Centre for Medicines Optimisation Research and Education (CMORE), and the Quality Improvement team, the CNMAR held the Festival of Excellence conference in March 2023 which showcased over 40 poster presentations and attracted over 100 attendees. Delegate feedback was overwhelmingly positive: _“I choose to work at UCLH because there is the CNMAR and I hope one day to be part of it. Thank you to keep this conference free and accessible to all of us. It is a big present to nursing.”_ 

**12** UCLH CHARITY ANNUAL REPORT & ACCOUNTS 2022–23 



## Supporting our local community 

In 2022/23 we agreed funding to enable the development of a community-based service to support vulnerable young people in Camden and Islington. This is another example of UCLH Charity’s work to reach out to support the health and wellbeing needs of our local community. 


**----- Start of picture text -----**<br>
The OnWard team<br>**----- End of picture text -----**<br>


_“ The UCLH OnWard team at the Brandon have been so delighted to have support from UCLH Charity to develop and deliver this unique service which has changed the way we deliver health care for the most deprived local young people. We have seen over 170 patients, reduced inappropriate health care use, increased school attendance and made young people feel better. The service has been recognised nationally as a trailblazer for community delivered adolescent care.”_ 

**Dr Jo Begent,** _consultant paediatrician_ 

_This joined up service is the gold standard of care._ 

_“ We are delighted that at last a holistic approach is being offered.”_ 

## **Brandon Centre** 

The Outreach service for the Wellbeing of Adolescents (OnWArd) at the Brandon Centre caters for young people (13-18 years) living or studying in Camden and Islington with physical health symptoms and other issues with their mental health and social situation. The service aims to reach young people who struggle to access secondary health care. The service is based at the Brandon Centre, a Kentish Town based charity. 

The service operates a weekly clinic, which opened in October, with paediatric doctors, nurses, allied 

health professionals and youth workers carrying out assessments of health and wellbeing for young people who have health needs. Following this, a plan of care can be established, which can include onward referral to services such as sexual health, psychology, occupational therapy, physiotherapy and employment and education support which are available within the clinic. The aim is for this service to be a ‘One Stop Shop’ that holistically assesses and cares for the health and social needs of vulnerable young people. 

## **OTHER INITIATIVES FUNDED** 

- Our recent funding has allowed Redthread to provide an enhanced model at UCLH. Between November 2022 and June 2023 155 patients were seen and a Universal Youth Work service which supports young people aged 11-19 presenting to UCLH ED or other inpatient settings in the hospital, for whom there are psycho-social or safeguarding needs, will be launched in this year. 

UCLH CHARITY ANNUAL REPORT & ACCOUNTS 2022–23 **13** 



## Philanthropy 

We are very grateful to all our donors who have supported us in the last year, enabling us to go truly ‘above and beyond’ for patients, staff and research. 




## **J Davy Foundation** 

## **NHS Charities Together** 

We were grateful for the ongoing support from NHS Charities Together. In 2022, we continued to develop the Youth Volunteer Programme with a grant from the Volunteering Futures Fund. We also received our second round grant from the Covid Recovery Fund. This enabled the acquisition of pain distraction systems in the radiotherapy department, and to install a wide range of ambulatory play equipment across UCLH. We also received a grant to help us develop communications and raise visibility of UCLH Charity across UCLH. 

The J Davy Foundation also continued their support this year, with two grants of £20,000 and £50,000 which will enable us to improve areas for staff in the cancer centre and provide nurses in the gastro intestinal oncology team at UCLH with skills and expertise to become leaders in molecular testing. The Foundation’s support for research last year has enabled progression of a study into the potential use of proton beam therapy for patients with liver cancer. 

## **Squire Garden** 

The rooftop Squire Garden at the University College Hospital Macmillan Cancer Centre was named in recognition of a donation made by Fiona and Geoff Squire when the Centre opened in 2012. The garden provides time away from the busy clinical environment for staff and a chance to reconnect with nature for patients undergoing treatment. Ten years on, charitable donations have enabled a refresh and uplift. After visiting the garden last November Geoff Squire said, _“It’s how I always envisioned the garden would be!”_ 


**Total grants:** 

## **£90,000** 

## **Music therapy** 


A £3,000 grant from the Universal Music Charity has funded five City of London Sinfonia music sessions for 13 young patients being treated for cancer at UCLH. 

The music sessions have had a positive impact on the patients’ well-being, creating an opportunity for them to express their feelings through music at a very challenging time. Feedback has been overwhelmingly positive, with patients describing the sessions as the ‘highlight of my week’ helping them ‘feel less alone’. 


## **Prostate cancer treatment** 

We were very grateful to receive the support of many generous individual donors throughout the year. We received a gift pledge of £20,000 from Jeremy Stanyard. This has enabled us to take forward a ground breaking study into robotic surgery and imaging for prostate cancer treatment, led by urologist and robotic prostate cancer surgeon, Zaf Tandogdu. 

**Grant:** 

**£3,000** 

**Gift pledge:** 

## **£20,000** 

UCLH CHARITY ANNUAL REPORT & ACCOUNTS 2022–23 **15** 



## Fundraising 

Our growing fundraising community continue to go the extra mile to make a difference. Here is a snapshot of the fundraising year. 


**----- Start of picture text -----**<br>
Team Epic at the Royal Parks Half<br>**----- End of picture text -----**<br>


## **Royal Parks Half** 

Teamwork made the dreamwork as ‘Team Epic’ (from the Trust’s IT department) joined several colleagues and UCLH Charity supporters to take part in the Royal Parks Half Marathon in October 2022. The runners were supported by friends, family and the unmissable cheer point co-ordinated by the fundraising team at mile five. 

**Total raised:** 

**£6,468** 



**----- Start of picture text -----**<br>
Total raised:<br>**----- End of picture text -----**<br>


**£39,550** 

## **TCS London Marathon 2022** 

The 2022 TCS London Marathon took place in October 2022. #TeamUCLH included research nurse Monette, who became one of the faces of this iconic challenge after her photograph was taken at the finish line. _“Running the London Marathon and to be part of it has always been a big dream of mine. Even better, I am fundraising for UCLH Charity, which means you are not just running for yourself and your bucket list, but you are running for a good cause.”_ 

**16** UCLH CHARITY ANNUAL REPORT & ACCOUNTS 2022–23 





## **Bringing the Colour to the children’s emergency department** 


Last year, the appeal to refurbish and refresh the children’s emergency department at University College Hospital successfully raised over £174,000. This year the work began. Undertaking the work in a fully operational building takes time and planning, but the finished department will feature new colours, wall art, furniture and lighting, all designed to make the space more welcoming, for the thousands of young patients that come to the department as an emergency each year. 


## **Corporate partnerships** 

## **Supporter story – meet Taylor** 

Taylor (also pictured on page 12 with Dr Jessica Manson) is celebrating his recovery from serious illness in remarkable style. In August 2022 he did the inflatable 5km to say thank you to the team who looked after him when he was diagnosed with haemophagocytic lymphohistiocytosis (HLH) a group of conditions which severely affects the body’s immune system. After spending three months as an inpatient at UCLH, Taylor is now on the way to recovery and ran the London Marathon, for UCLH Charity in April 2023. 

The donations of giftsin-kind have enabled us to provide patients and staff with special treats that they would not otherwise enjoy. 

Thank you to: 

- Hasbro 

- Elemis 

- Argentum 

- St Pancras Hotel 

- Grafton Hotel 

- Fitzrovia Partnership 


## **Gift of giving appeal** 

A special thank you to Derwent, who donated £45,000 to uplift a staff room for the surgical team at University College Hospital. 

The Gift of Giving appeal was launched in December 2022 to make being in hospital over Christmas and new year that bit better for patients and staff. The appeal successfully raised sufficient funds to ensure that everyone who was in hospital on Christmas Day had a present to open, and that staff working the holiday shifts had a festive meal and/or treat to enjoy. The money raised came from a variety of sources – direct donations, corporate donations and sales of charity Christmas cards. 



**First ever Charity Week** 

The fundraising team organised the first ever UCLH Charity Week to co-incide with the NHS’ 74th birthday last July. There was a real buzz, as staff were invited to get involved in supporting the Week in different ways. From taking part in the superhero in the city run, a 5km fun run through the city of London in superhero outfits, to hosting team bake off competitions and NHS Big Teas, there was something for everyone to get involved in. 

**Total raised:** 

**£20,000** 

UCLH CHARITY ANNUAL REPORT & ACCOUNTS 2022–23 **17** 



**TRUSTEES’ REPORT INCORPORATING STRATEGIC REPORT** 

## Strategic report and financial review 

The trustees have pleasure in presenting their annual report for the purposes of the Charities Act 2011, together with the accounts for the year ended 31 March 2023 for University College London Hospitals Charity (UCLH Charity). The report is also a directors’ report as required by S.415 of the Companies Act 2006. The trustees have used the Financial Reporting Standard applicable in the UK and the Republic of Ireland (FRS 102) and follow the Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland in preparing the annual report and accounts of the charity. 

## **Public benefit** 

It is the intention of the trustees that the charitable funds should be used to expand on and develop the services provided by University College London Hospitals NHS Foundation Trust, by funding innovative and original projects which would not otherwise be possible using only central NHS funds. In formulating and applying these objects and planning the work of the charity, the trustees have due regard for Charity Commission’s general guidance on public benefit. 

## **Strategy, planning and measurement** 

In order to work towards its objectives, the charity undertakes regular strategic reviews, based on discussions with UCLH NHS Foundation Trust senior staff. Each review helps the charity to understand the direction of the Foundation Trust, the issues it faces, and how the charity can best support it as it moves forward. 

Follow-up reports are received from grant recipients to gather evidence on how effective the charity’s funding has been. Most projects take some time to show measurable results and the benefits accrue gradually, so the results of grants made in one accounting period may not emerge until future years. 

## **Balance sheet** 

The group and the charity’s financial positions are summarised on pages 30 and 31 respectively. 

The Cotton Rooms patient accommodation, which occupies the top two floors of 170 Tottenham Court Road, a property owned by the charity, is classified as a tangible fixed asset, since it is used to provide services to the charity’s beneficiaries. It was valued at £11.2m at 31 March 2023 (2022: £9.1m). 

The Middlesex Annexe was bought in March 2017 and the purchase cost and other associated fees have also been classified as a tangible fixed asset, since the property is still under construction. The property was transferred to Middlesex Annexe LLP on 1 April 2018 on a long lease and has continued to be developed by the LLP. This has been renamed the Bedford Passage Development and was valued at £72.1m at 31 March 2023 (2022: £40.5m). 

The group’s total tangible fixed assets were valued at £89.5m at 31 March 2023 (2022: £54.6m). 

Investment properties accounted for £58.6m of the group’s assets (2022: £61.2m), with a further £22.9m represented by listed investments (2022: £31.5m). Further details of investment performance are below. Debtors stood at £28.6m (2022: £13.6m), and the charity held £42.2m of cash at bank at 31 March 2023. This compares to cash of £45.3m at 31 March 2022. 

The charity’s main liabilities were its grant creditors, which stood at £18.6m (2022: £19.3m). Total current liabilities were £31.9m at 31 March 2023 (2022: £25.7m). 

A loan was taken out from Reassure Limited of £30m in March 2021 for a period of 30 years. 

The group balance sheet stood at £177.5m at 31 March 2023 (2022: £148.8m). 

**18** UCLH CHARITY ANNUAL REPORT & ACCOUNTS 2022–23 



## **TRUSTEES’ REPORT INCORPORATING STRATEGIC REPORT STRATEGIC REPORT AND FINANCIAL REVIEW** 


**----- Start of picture text -----**<br>
02<br>15%<br>03<br>11%<br>4% 04<br>70%<br>01<br>05<br>12<br>5%<br>19%<br>06<br>28%<br>11<br>6%<br>11%<br>10<br>10%<br>15% 6% 07<br>09<br>08<br>**----- End of picture text -----**<br>


|**Income:Group basis**|**2023**|2022|
|---|---|---|
||**£’000**|£’000|
|**01**Donations and legacies|**28,330**|15,616|
|**02**Turnover of subsidiary companies|**6,036**|5,787|
|**03**Investment income|**4,566**|4,135|
|**04**Charitable activities, other|||
|fundraising activities and other income|**1,537**|1,063|
||**40,469**|26,601|



Income was £40.5m for the year, £13.9m more than last year, mainly due to a grant of £20.0m from UCLH NHS Foundation Trust recognised during the year, compared to one of £8.1m in 2022. Donations and legacies are the charity’s largest source of funding, and the majority of them are ring-fenced in discretionary funds for consultants, departments and wards. The charity’s arrangement of working closely with clinical staff means that this key funding stream is targeted very directly at the priorities identified by clinicians, who are best placed to see how funds can be used to benefit patients. 

|**Expenditure:Group basis**|**2023**|2022|
|---|---|---|
||**£’000**|£’000|
|**05**Cost of generating donations and|**1,096**|836|
|legacies|||
|**06**Operating costs of subsidiary|**6,008**|5,614|
|companies and other fundraising|||
|trading activities (excluding impairment|||
|on Bedford Passage Development)|||
|**07**Investment and property|**2,097**|1,984|
|management costs|||
|**08**Medical equipment and|**1,307**|2,973|
|infrastructure|||
|**09**Provision of staff and professional|**3,153**|3,509|
|services|||
|**10 **Patient welfare and amenities|**2,333**|1,970|
|**11 **Medical research|**1,268**|1,736|
|**12 **Staff education and development|**4,024**|1,819|
||**21,286**|20,441|
|Impairment on Bedford Passage|**(11,887)**|3,023|
|Development|||
||**9,399**|23,464|



Expenditure was £9.4m compared to £23.4m for the same period last year. This decrease of £14m was largely due to the write back of the impairment of £11.9m on the Bedford Passage development as a result of the revision of the tenure mix of the housing being provided, compared with an impairment provision of £3m in 2022. 

Grant expenditure and expenditure from discretionary funds are by their nature unpredictable and so spending between the different categories of charitable activities is not necessarily consistent from one financial year to another. 

UCLH CHARITY ANNUAL REPORT & ACCOUNTS 2022–23 **19** 



**TRUSTEES’ REPORT INCORPORATING STRATEGIC REPORT STRATEGIC REPORT AND FINANCIAL REVIEW** 

## **Investment policy and performance** 

As at 31 March 2023, the trustees held investment assets with a market value of £81.5m (2022: £92.7m), consisting of £21.7m held with investment managers, £1.3m held in common investment funds and £58.6m in investment properties. As a result of the sale of Inventive Medical Ltd in 2016-17, the charity holds shares in Intelligent Ultrasound Group plc which were valued at £0.5m at the year end. 

During the year, the charity made net investment losses of £2.4m (2022: gains of £1.7m), which related to its investment portfolios and to a revaluation of its property portfolio. Further details are provided in note 15 to the accounts, including the breakdown between listed investments and investment properties. 

The majority of listed investments were held with Sarasin & Partners LLP. During the year the equity holdings were sold to provide more cash equivalent holdings to assist with the requirements of the Bedford Passage project. The charity also owns a number of investment properties which provide residential and office accommodation, and in addition holds some units in the COIF Charities Investment Fund, managed by CCLA Investment Management Ltd, and some residual investments with Cazenove Capital Management. 

Investments in stocks and shares are made in accordance with a Charity Commission Scheme dated 27 March 2017. The charity’s governing documents allow the trustees to invest in a wide range of shares and investments provided they are not speculative or hazardous. The trustees require their investment managers to invest in a diversified portfolio of investments to provide growth of both capital and income over the long term, whilst avoiding exposing the charity’s assets to unacceptable high levels of risk. Investment is not made directly or indirectly in companies which derive 10% or more of their revenue from the sale of tobacco or tobacco products. The trustees have delegated oversight of listed investment matters to the investment sub-committee. 

Investment performance is continuously monitored and measured in-house, against trustees’ and investment management benchmarks on a monthly basis. Investment advisers meet with the officers regularly and with the trustees twice a year to discuss strategies and performance. The trustees remain satisfied that their investment objectives are being met. 

## **Reserves** 

At 31 March 2023, the total funds of the group amounted to £177.5m. A full breakdown is shown in note 19. 

Endowment funds totalled £7.9m (2022: £8.2m) and restricted funds amounted to £31.5m (2022: £11.5m). A further £27.1m (2022: £54.2m) was held in discretionary funds which have been designated for the support of consultants, departments and wards. For these funds, decisions over spending are delegated to senior clinical staff, so the funds are not available for general application by the charity. 

£13.8m (2022: £19m) is held in other designated funds, under the control of the trustees but ring-fenced for specific projects. 

The trustees have ongoing commitments relating to the welfare of both patients and staff. Apart from donations and legacies, which are by their nature unpredictable, the income received by the charity’s undesignated funds is primarily derived from investments and property rental. The trustees therefore consider that there is a need to maintain a level of free reserves to generate sufficient income to meet these commitments, allowing for fluctuations in the returns that these investments generate. 

The charity’s expenditure varies from year to year and is often significant on any one project, be it the purchase of expensive medical equipment or a major capital scheme. A substantial level of free reserves is required both to meet known likely expenditure up to two or three years’ forward and unforeseen expenditure. 

The level of undesignated general funds at 31 March 2023 was £97.2m. However, the charity has tangible fixed assets of £89.5m which are not immediately available for use in the charity’s general purpose, so the level of reserves which the charity has freely available for its activities is £7.7m. 

The charity continuously monitors the level of reserves to ensure that commitments can be met, and the trustees review the reserves policy on an annual basis. The trustees have set a target level of reserves between £5m and £10m. The level of free reserves was within this target range at 31st March 2023. The Trustees continue to monitor this situation closely and consider that the level of free reserves at 31 March 2023 is adequate to meet the charity’s needs. 

The trustees have delegated oversight of properties to the management team. A full revaluation of the charity’s investment properties was carried out as at 31 March 2023, in line with the requirements of the Charities’ Statement of Recommended Practice. 

**20** UCLH CHARITY ANNUAL REPORT & ACCOUNTS 2022–23 



**TRUSTEES’ REPORT INCORPORATING STRATEGIC REPORT STRATEGIC REPORT AND FINANCIAL REVIEW** 

## **Risk management** 

The trustees recognise that they have a responsibility to minimise the level of risk to which their activities could be exposed. They actively review the major risks which the group and charity face on a regular basis and believe that the maintenance of reserves, combined with the annual review of the controls over key financial systems will provide sufficient resources for committed grants in the event of adverse conditions. 

UCLH Charity assesses risks for both likelihood of occurrence and potential financial impact, with procedures established to mitigate these as far as possible. Risks which score highly on both scales are monitored closely. At present, the most serious risks the charity has identified fall into two broad categories; investments and investment property. The charity considers that appropriate mitigating procedures are in place in both these areas, supported by the existence of specialist sub-committees on each area reporting to the trustees. In particular, lack of appropriate investment policies or poor investment performance, which could lead to financial loss, is mitigated by the involvement of professional investment management firms who meet regularly with the trustees and officers. The risk of a property market collapse, which could have a significant impact on the value of the charity’s investment properties, is mitigated by the fact that the properties are held by the charity as long-term investments and long-term rental agreements are held with tenants, the majority of which are UCLH NHS Foundation Trust or University College London. The risks associated with the significant capital project currently being undertaken are mitigated by the use of professional advisors and regular monitoring procedures are in place. 

## **Plans for the future** 

Over the next five years, the charity plans: 

- To fund significant equipment and facility projects at UCLH. These grants will be the largest ever made by the charity; 

- To provide ongoing support to UCLH for the projects which they consider to be most beneficial, ensuring that these are over and above NHS provision; 

- To expand fundraising activities and raise the profile of the charity within the hospitals and the community which they serve; 

- To work with its fundholders who run ward and discretionary funds, supporting them in the valuable work they do on our behalf and assisting with their fundraising initiatives; 

- To generate new income streams, particularly through our project to develop the Bedford Passage; 

- To continue to support UCLH staff through staff engagement schemes and assisting the delivery of an environmentally sustainable hospital. 

## **Fundraising** 

UCLH Charity aims to achieve best practice in the way in which it communicates with donors and other supporters and is registered with the Fundraising Regulator. It takes care with both the tone of its communications and the accuracy of its data to minimise the pressures on supporters. It applies best practice to protect supporters’ data and never sells data, never swaps data and ensures that communication preferences can be changed at any time. The charity undertakes to react to and investigate any complaints regarding its fundraising activities and to learn from them and improve its services. During the year, the charity received no complaints about its fundraising activities. Third party fundraisers are not used. The charity supports the fundraising strategy of UCLH NHS Foundation Trust and their priority is still to raise funds for the new cancer and surgery centre and to provide environmentally friendly spaces for patients at the hospitals. 

UCLH CHARITY ANNUAL REPORT & ACCOUNTS 2022–23 **21** 



**TRUSTEES’ REPORT INCORPORATING STRATEGIC REPORT** 

## Structure, governance and management 

## **UCLH Charity structure** 

Following a restructuring process supported by the Department of Health and the Charity Commission, University College London Hospitals Charity reconstituted as a charitable company limited by guarantee registered with the Charity Commission (no.1165398) and Companies House (09980449). The charity is an incorporated organisation and operates under a Charity Commission Scheme dated 27 March 2017 and the trustees are members of the charitable company. Its objects are covered in its Articles of Association, dated 1 February 2016 and for the public benefit, to further any charitable purposes relating to any purposes of University College London NHS Foundation Trust or that of the health service. 

## **Trustees** 

For continuation purposes, a number of trustees who were previously trustees of the former NHS charity became trustees of the new charity, carrying over their terms of office. New trustees are appointed by the trustee board after an appointment process. They are selected to provide the charity with a relevant mix of professional skills in health, law, investment management, properties, and charitable grant-making. Altogether the charity has seven trustees composed of four independent trustees, one Foundation Trust trustee and two clinical trustees nominated by the Foundation Trust. 

Newly appointed trustees are provided with packs which provide details on the duties and roles of a charity trustee and information about how the charity operates. In addition, new trustees meet the chairman and officers of the charity to discuss the organisation’s objectives and direction. 

Trustees are kept up to date regularly with changes relating to charity legislation. Conferences organised by legal, financial and investment professionals are available for trustees to attend. The charity is also a member of NHS Charities Together which offers regular seminars for the trustees. 

## **Organisational structure** 


**----- Start of picture text -----**<br>
TRUSTEES<br>Investment  LLP  Remuneration<br>Committee Board Committee<br>Chief Executive<br>Finance Director  Development  Chief Operating<br>/Head of Finance Director Officer<br>**----- End of picture text -----**<br>


## **Organisation and decision-making process** 

The trustees are responsible for setting the strategic direction of the organisation and for establishing policy. They meet quarterly to discuss and review the group and charity’s state of affairs. The trustees delegate the day-to-day administration of the charity to the chief executive who is supported by accounting and administrative staff. 

The charity invites applications for funding of projects through University College London Hospitals NHS Foundation Trust. Grant bids must be approved by the UCLH Senior Director Team before consideration by the trustees, to ensure that grants made are in line with the strategic direction of the Foundation Trust. Grant bids which have been passed by the Foundation Trust are discussed at quarterly trustees’ meetings which the Foundation Trust’s chairman and chief executive are invited to attend in an advisory capacity. Decisions to approve all or part of a particular grant are made by the trustees following these discussions. 

There are two sub-committees, investment and remuneration, together with the Board of the LLP which is building the Bedford Passage development. The remuneration sub-committee recommends a level of remuneration for key management personnel comprising the chief executive and the executive team. This sub-committee consists of at least three trustees with appropriate skills and experience. It meets at least once a year and reports to the full board of trustees. Further details of key management personnel and their remuneration are given in note 12. 

**22** UCLH CHARITY ANNUAL REPORT & ACCOUNTS 2022–23 



**TRUSTEES’ REPORT INCORPORATING STRATEGIC REPORT STRUCTURE, GOVERNANCE AND MANAGEMENT** 

## **Discretionary funds** 

A significant proportion of the charity’s activities are delivered by the staff of the Foundation Trust, who are a key link to patients and supporters. For discretionary funds, which are designated (see note 19), the charity relies on these staff to submit proposals for the most effective use of funds, bearing in mind their knowledge of local needs in their own wards and departments. These requests are reviewed and authorised by officers of the charity to ensure that expenditure is in accordance with the charity’s objects. 

## **Subsidiary companies owned by UCLH Charity and consolidated in these accounts** 

The charity owns the entire share capital of the entities listed below, whose results are consolidated in these accounts: 

_QS Enterprises Ltd (company number 01850377)_ This company provides clinical imaging services to patients of the NHS and private hospitals. It has a separate board of directors who report to the charity trustees on a regular basis. The company is not planning to make a gift aid contribution to the charity from its profits for the year (2022: £Nil). Further details of its financial results are given in note 4. 

## **Associated organisations** 

The charity exists to support the work of UCLH NHS Foundation Trust, with which it has a close working relationship. The Foundation Trust chairman and chief executive are invited to attend regular trustees’ meetings, but the trustees of UCLH Charity are totally independent of the Foundation Trust. 

The charity also works with the Essex Wynter Charity (registered charity number 1084786), an independent charity which provides grants, scholarships and accommodation for the benefit of current and past employees of The Middlesex Hospital and UCLH who are in need of financial assistance. UCLH Charity has the responsibility of appointing the Essex Wynter Charity nominated trustees and provides administrative support. Close links are maintained between the two bodies as staff of UCLH NHS Foundation Trust benefit from the activities of both entities. 

_Middlesex UCLHC Ltd (company number 10821655)_ This company was formed on 15 June 2017 to carry out property activities. Its financial activities commenced on 1 April 2018. Further details of its financial results are given in note 5. 

_Middlesex Annexe LLP (registered number OC417941)_ This limited liability partnership was formed on 28 June 2017 to carry out property activities, in particular the development of the former Middlesex Annexe in Fitzrovia, now renamed the Bedford Passage Development. UCLH Charity and Middlesex UCLHC Ltd are members of the partnership. Its financial activities commenced on 1 April 2018 when it acquired a long lease on the property. Further details of its financial results are given in note 6. 

UCLH CHARITY ANNUAL REPORT & ACCOUNTS 2022–23 **23** 



**TRUSTEES’ REPORT INCORPORATING STRATEGIC REPORT** 

## Statement of trustees’ responsibilities 

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

Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and the group and of the income and expenditure of the group for that period. 

## **In preparing these financial statements, the trustees are required to:** 

- select suitable accounting policies and then apply them consistently; 

- observe the methods and principles in Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102); 

## **Each of the trustees confirms that:** 

- so far as the trustee is aware, there is no relevant audit information of which the charitable company’s auditor is unaware; and 

- the trustee has taken all the steps that he/she ought to have taken as a trustee in order to make himself/herself aware of any relevant audit information and to establish that the charitable company’s auditor is aware of that information. 

This confirmation is given and should be interpreted in accordance with the provisions of s418 of the Companies Act 2006. 

The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. 

Signed on behalf of the trustees: 

- make judgements and estimates that are reasonable and prudent; 

- state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and 

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

**The Lord Hemphill** _Chairman_ 

30 September 2023 

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

**24** UCLH CHARITY ANNUAL REPORT & ACCOUNTS 2022–23 



**TRUSTEES’ REPORT INCORPORATING STRATEGIC REPORT** 

## Independent auditor’s report to the members 

## **Report on the financial statements** 

## **Opinion** 

We have audited the financial statements of University College London Hospitals Charity (the ‘charitable parent company’) and its subsidiaries (the ‘group’) for the year ended 31 March 2023 which comprise the group and charitable parent company statements of financial activities, the group and charitable parent company balance sheets and the consolidated statement of cash flows, the principal accounting policies and the notes to the financial statements. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ (United Kingdom Generally Accepted Accounting Practice). 

## **In our opinion, the financial statements:** 

- give a true and fair view of the state of the group’s and of the charitable parent company’s affairs as at 31 March 2023 and of the group’s income and expenditure for the year then ended; 

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

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

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 trustees are responsible for the other information. The other information comprises the information included in the annual report and financial statements, other than the financial statements and our auditor’s report thereon. 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. 

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

We have nothing to report in this regard. 

## **Basis for opinion** 

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

## **Conclusions relating to going concern** 

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

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

## **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 trustees’ report, which is also the directors’ report for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and 

- the trustees’ report, which is also the directors’ report for the purposes of company law, has been prepared in accordance with applicable legal requirements. 

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

In the light of the knowledge and understanding of the group and the charitable parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ report. 

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

- adequate accounting records have not been kept by the charitable parent company, or returns adequate for our audit have not been received from branches not visited 

UCLH CHARITY ANNUAL REPORT & ACCOUNTS 2022–23 **25** 



**TRUSTEES’ REPORT INCORPORATING STRATEGIC REPORT INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS** 

by us; or 

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

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

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

- the trustees were not entitled to take advantage of the small companies’ exemption from the requirement to prepare a strategic report. 

## **Responsibilities of trustees** 

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

In preparing the financial statements, the trustees are responsible for assessing the group’s and the charitable parent company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the group or the charitable parent 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 the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. 

Irregularities, including fraud, are instances of noncompliance 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: 

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

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

- we obtained an understanding of the legal and regulatory frameworks that are applicable to the charity and determined that the most significant frameworks which are directly relevant to specific assertions in the financial statements are those that relate to the reporting framework (Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011). 

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

- making enquiries of management as to their knowledge of actual, suspected and alleged fraud; and 

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

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

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

- tested journal entries to identify unusual transactions; 

- challenged assumptions and judgements made by management in assessing the going concern basis of accounting and in its significant accounting estimates, including the estimated values of investment properties and tangible fixed assed held at fair value, the estimated useful economic lives of assets held at depreciated cost for the purpose of determining the annual depreciation charge, and the basis for allocating support costs. 

- performed sample based testing of expenditure in the accounting system to supporting documentation and sample based testing of income from source documentation to the accounting system; 

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

- reading the minutes of meetings of those charged with governance; and 

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

**26** UCLH CHARITY ANNUAL REPORT & ACCOUNTS 2022–23 



**TRUSTEES’ REPORT INCORPORATING STRATEGIC REPORT INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS** 

As a result of our procedures, we did not identify any key audit matters relating to irregularities. 

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

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

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at www.frc.org.uk/ auditorsresponsibilities. This description forms part of our auditor’s report. 

## **Use of our report** 

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


## **Shachi Blakemore** 

## _Senior Statutory Auditor_ 

For and on behalf of Buzzacott LLP, Statutory Auditor 130 Wood Street, London EC2V 6DL 

30 September 2023 

UCLH CHARITY ANNUAL REPORT & ACCOUNTS 2022–23 **27** 



## **FINANCIAL STATEMENTS** 

## Consolidated statement of financial activities 

## **INCLUDING AN INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MARCH 2023** 

||||||**2023**|2022|
|---|---|---|---|---|---|---|
|||Unrestricted|Restricted|Endowment|**Total**|Total|
|||Funds|Funds|Funds|**Funds**|Funds|
||Note|£’000|£’000|£’000|**£’000**|£’000|
|**Income and endowments from:**|||||||
|Donations and legacies|3|8,065|20,265|–|**28,330**|15,616|
|Charitable activities||1,358|–|–|**1,358**|1,015|
|Other trading activities|||||||
|Turnover of QS Enterprises Ltd|4|6,036|–|–|**6,036**|5,787|
|Other fundraising activities||94|–|–|**94**|48|
|Investments|7|4,433|133|–|**4,566**|4,135|
|Other||85|–|–|**85**|–|
|**Total income**||**20,071**|**20,398**|**–**|**40,469**|**26,601**|
|**Expenditure on:**|||||||
|Raising funds|||||||
|Costs of generating donations and legacies||1,086|10|–|**1,096**|836|
|Fundraising trading expenditure|||||||
|Operating costs of QS Enterprises Ltd|4|5,446|–|–|**5,446**|5,061|
|Operating costs of Middlesex Annexe LLP|6|(11,327)|<br>–|–|**(11,327)**|3,569|
|Other||2|–|–|**2**|7|
|Investment management costs|||||||
|Costs of managing quoted investments||74|7|14|**95**|168|
|Costs of managing, maintaining and|||||||
|repairing investment properties||1,054|–|–|**1,054**|873|
|Bank interest and charges on loan relating|||||||
|to investment properties||948|–|–|**948**|943|
|Charitable activities|8||||||
|Medical equipment and infrastructure costs||1,306|1|–|**1,307**|2,973|
|Provision of staff and professional services||2,887|266|–|**3,153**|3,509|
|Patient welfare and amenities||2,327|6|–|**2,333**|1,970|
|Medical research||1,267|1|–|**1,268**|1,736|
|Staff education and development||4,020|4|–|**4,024**|1,819|
|**Total expenditure**||**9,090**|**295**|**14**|**9,399**|**23,464**|
|**Net income/(expenditure) before investment gains**||10,981|20,103|(14)|**31,070**|3,137|
|Net(losses)/gains on investments|15|(1,989)|(108)|(276)|**(2,373)**|1,696|
|**Net income/(expenditure) and net movements in funds**||8,992|19,995|(290)|**28,697**|4,833|
|**Reconciliation of funds**|||||||
|Total funds brought forward|19|129,120|11,462|8,218|**148,800**|143,967|
|**Total funds carried forward**|19|**138,112**|**31,457**|**7,928**|**177,497**|**148,800**|



All of the group’s activities in the above two financial periods were derived from continuing operations. 

The notes on pages 33 to 51 form part of these accounts. 

Detailed comparative information for the year ended 31 March 2022 is given in note 1 to the accounts. 

**28** UCLH CHARITY ANNUAL REPORT & ACCOUNTS 2022–23 



## **FINANCIAL STATEMENTS** 

## Charity only statement of financial activities 

## **INCLUDING AN INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MARCH 2023** 

||||||**2023**|2022|
|---|---|---|---|---|---|---|
|||Unrestricted|Restricted|Endowment|**Total**|Total|
|||Funds|Funds|Funds|**Funds**|Funds|
||Note|£’000|£’000|£’000|**£’000**|£’000|
|**Income and endowments from:**|||||||
|Donations and legacies||8,065|20,265|–|**28,330**|15,616|
|Charitable activities||1,358|–|–|**1,358**|1,015|
|Other fundraising activities||94|–|–|**94**|48|
|Investments||8,611|133|–|**8,744**|6,067|
|Other||217|–|–|**217**|70|
|**Total income**||**18,345**|**20,398**|**–**|**38,743**|**22,816**|
|Expenditure on:|||||||
|Raising funds|||||||
|Costs of generating donations and legacies||1,086|10|–|**1,096**|836|
|Fundraising trading expenditure|||||||
|Provision for doubtful debts due from subsidiary|||||||
|undertakings||(7,148)|–|–|**(7,148)**|18,683|
|Other||2|–|–|**2**|7|
|Investment management costs|||||||
|Costs of managing quoted investments||74|7|14|**95**|168|
|Costs of managing, maintaining and|||||||
|repairing investment properties||1,054|–|–|**1,054**|873|
|Bank interest and charges on loan relating|||||||
|to investment properties||948|–|–|**948**|943|
|Charitable activities|8||||||
|Medical equipment and infrastructure costs||1,306|1|–|**1,307**|2,973|
|Provision of staff and professional services||2,887|266|–|**3,153**|3,509|
|Patient welfare and amenities||2,327|6|–|**2,333**|1,970|
|Medical research||1,267|1|–|**1,268**|1,736|
|Staff education and development||4,020|4|–|**4,024**|1,819|
|**Total expenditure**||**7,823**|**295**|**14**|**8,132**|**33,517**|
|**Net income/(expenditure) before investment gains**||10,522|20,103|(14)|**30,611**|(10,701)|
|Net(losses)/gains on investments|15|(1,989)|(108)|(276)|**(2,373)**|1,696|
|**Net income/(expenditure) and net movement in funds**||8,533|19,995|(290)|**28,238**|(9,005)|
|**Reconciliation of funds**|||||||
|Total funds brought forward|19|129,067|11,462|8,218|**148,747**|157,752|
|**Total funds carried forward**|19|**137,600**|**31,457**|**7,928**|**176,985**|**148,747**|



Detailed comparative information for the year ended 31 March 2022 is given in note 2 to the accounts. 

UCLH CHARITY ANNUAL REPORT & ACCOUNTS 2022–23 **29** 



## **FINANCIAL STATEMENTS** 

## Consolidated balance sheet 

## **AS AT 31 MARCH 2023** 

|**AS AT 31 MARCH 2023**|||||||
|---|---|---|---|---|---|---|
||||||**2023**|2022|
|||Unrestricted|Restricted|Endowment|**Total**|Total|
|||Funds|Funds|Funds|**Funds**|Funds|
||Note|£’000|£’000|£’000|**£’000**|£’000|
|**Fixed assets**|||||||
|Tangible assets|14|89,489|–|–|**89,489**|54,563|
|Listed investments and investmentproperties|15|72,319|1,276|7,928|**81,523**|92,742|
|**Total fixed assets**||**161,808**|**1,276**|**7,928**|**171,012**|147,305|
|**Current assets**|||||||
|Debtors|16|8,583|20,000|–|**28,583**|13,605|
|Cash at hand and in bank||32,031|10,181|–|**42,212**|45,281|
|**Total current assets**||**40,614**|**30,181**|**–**|**70,795**|58,886|
|**Current liabilities**|||||||
|Creditors: amounts fallingdue within oneyear|17|31,877|–|–|**31,877**|25,650|
|**Net current assets**||**8,737**|**30,181**|**–**|**38,918**|33,236|
|**Total assets less current liabilities**||170,545|31,457|7,928|**209,930**|180,541|
|Creditors: amounts falling due after|||||||
|more than oneyear|18|32,433|–|–|**32,433**|31,741|
|**Total net assets**||**138,112**|**31,457**|**7,928**|**177,497**|148,800|
|**The funds of the charity**|||||||
|Capital funds|||||||
|Endowment funds|19|–|–|7,928|**7,928**|8,218|
|Income funds|||||||
|Restricted funds|19|–|31,457|–|**31,457**|11,462|
|Unrestricted funds|||||||
|General funds|19|97,197|–|–|**97,197**|55,912|
|Designated discretionary funds|19|27,119|–|–|**27,119**|54,244|
|Other designated funds|19|13,796|–|–|**13,796**|18,964|
|**Total funds**||**138,112**|**31,457**|**7,928**|**177,497**|148,800|



The notes on pages 33 to 51 form part of these accounts. 

Signed on behalf of the trustees 

**The Lord Hemphill** 30 September 2023 

Company Registration Number 09980449 (England and Wales) 

**30** UCLH CHARITY ANNUAL REPORT & ACCOUNTS 2022–23 



## **FINANCIAL STATEMENTS** 

## Charity only balance sheet **AS AT 31 MARCH 2023** 

|**AS AT 31 MARCH 2023**|||||||
|---|---|---|---|---|---|---|
||||||**2023**|2022|
|||Unrestricted|Restricted|Endowment|**Total**|Total|
|||Funds|Funds|Funds|**Funds**|Funds|
||Note|£’000|£’000|£’000|**£’000**|£’000|
|**Fixed assets**|||||||
|Tangible assets|14|11,250|–|–|**11,250**|9,090|
|Listed investments and investmentproperties|15|72,319|1,276|7,928|**81,523**|92,742|
|**Total fixed assets**||**83,569**|**1,276**|**7,928**|**92,773**|**101,832**|
|**Current assets**|||||||
|Debtors|16|80,186|20,000|–|**100,186**|54,614|
|Cash at hand and in bank||31,243|10,181|–|**41,424**|44,552|
|**Total current assets**||**111,429**|**30,181**|**–**|**141,610**|**99,166**|
|**Current liabilities**|||||||
|Creditors: amounts fallingdue within oneyear|17|27,398|–|–|**27,398**|22,251|
|**Net current assets**||**84,031**|**30,181**|**–**|**114,212**|76,915|
|**Total assets less current liabilities**||167,600|31,457|7,928|**206,985**|178,747|
|Creditors: amounts falling due|||||||
|after more than oneyear|18|30,000|–|–|**30,000**|30,000|
|**Total net assets**||**137,600**|**31,457**|**7,928**|**176,985**|148,747|
|**The funds of the charity**|||||||
|Capital funds|||||||
|Endowment funds|19|–|–|7,928|**7,928**|8,218|
|Income funds|||||||
|Restricted funds|19|–|31,457|–|**31,457**|11,462|
|Unrestricted funds|||||||
|General funds|19|96,685|–|–|**96,685**|55,859|
|Designated discretionary funds|19|27,119|–|–|**27,119**|54,244|
|Other designated funds|19|13,796|–|–|**13,796**|18,964|
|**Total funds**||**137,600**|**31,457**|**7,928**|**176,985**|148,747|



UCLH CHARITY ANNUAL REPORT & ACCOUNTS 2022–23 **31** 



## **FINANCIAL STATEMENTS** 

## Consolidated statement of cash flows 

## **FOR THE YEAR ENDED 31 MARCH 2023** 

|||||**2023**|2022|2022|
|---|---|---|---|---|---|---|
||||Note|**£’000**|£’000||
|**Cash flows from operating activities:**|||||||
|Net cash provided by/(used in) operating activities|||21|**6,448**|(5,503)||
|**Cash flows from investing activities:**|||||||
|Dividends, interest and rents from investments||||**4,566**|4,135||
|Proceeds from the sale of investments||||**29,100**|49,860||
|Purchase of tangible fixed assets||||**(21,517)**|(11,934)||
|Purchase of investments||||**(22,414)**|(38,730)||
|Repayments ofprogramme-related loans||||**–**|–||
|**Net cash(used in)/provided by investing activities**||||**(10,265)**|3,331||
|**Cash flows from financing activities**|||||||
|New finance leases||||**1,754**|–||
|Capital element of finance lease repayments||||**(1,006)**|(809)||
|**Net cashprovided by/(used in) financing activities**||||**748**|(809)||
|**Change in cash and cash equivalents in the reporting period**||||**(3,069)**|(2,981)||
|Cash and cash equivalents at the beginningof the reporting period||||**45,281**|48,262||
|**Cash and cash equivalents at the end of the reporting period**||||**42,212**|45,281||
|**Analysis of changes in net debt**|||||||
||Total funds||||**Total funds**||
||brought forward||Other|**carried forward as**|||
||at 1 April 2022|Cash flows|movements|**at 31 March 2023**|||
||£’000|£’000|£’000||**£’000**||
|Cash and cash equivalents|45,281|(3,069)|–||**42,212**||
|Finance leases|(2,571)|–|(755)||**(3,326)**||
|Borrowing|(30,000)|–|–||**(30,000)**||
||12,710|(3,069)|(755)||**8,886**||



**32** UCLH CHARITY ANNUAL REPORT & ACCOUNTS 2022–23 



**FINANCIAL STATEMENTS** 

## Notes to the accounts 

## **Accounting policies** 

## **Basis of preparation** 

The accounts have been prepared under the historic cost convention, with the exception of investments which are included at fair value. 

The accounts have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011 and UK Generally Accepted Practice as it applies from 1 January 2015. 

The accounts are presented in sterling and rounded to the nearest thousand pounds. 

The charity is a public benefit entity as defined by FRS 102. 

The trustees consider that there are no material uncertainties about UCLH Charity’s ability to continue as a going concern. Preparation of the accounts requires the trustees to make significant judgements and estimates. The items in the accounts where these judgements and estimates have been made include: 

- estimating investment management fees charged on managed funds; 

- the basis for allocation of support costs; 

- estimating the useful economic life of tangible fixed assets and intangible assets; 

- the valuation of investment properties; and 

- the valuation of the Bedford Passage development being carried out by Middlesex Annexe LLP. 

The results of the wholly-owned subsidiary company, QS Enterprises Ltd, have been consolidated in these accounts on a line-by-line basis. Further details are given in note 4. 

A wholly-owned subsidiary company, Middlesex UCLHC Ltd, was set up in 2017-18. Its financial activities commenced on 1 April 2018 and have been consolidated into these accounts on a line-by-line basis. Further details are given in note 5. 

A limited liability partnership, Middlesex Annexe LLP, was set up in 2017-18. The two partners in the partnership are UCLH Charity and Middlesex UCLHC Ltd. The LLP’s financial activities commenced on 1 April 2018 and have been consolidated into these accounts on a line-by-line basis. Further details are given in note 6. 

On 1 April 2017 the entire undertaking of the unincorporated trust then known as University College London Hospitals Charity (the ‘Old Charity’) 

was transferred to a new charitable company called University College London Hospitals Charity, a company limited by guarantee and registered in England and Wales (the ‘New Charity’) company number 09980449. 

No separate statement of financial activities has been presented for the parent charity alone, as permitted by s.408 of the Companies Act 2006 and paragraph 24.36 of SORP 2015. 

## **Funds structure** 

Where there is a legal restriction on the purpose to which a fund may be put, the fund is classified either as a restricted fund or an endowment fund. Restricted funds are those where the donor has provided for the donation to be spent in furtherance of a specified charitable purpose. Endowment funds arise when the donor has expressly provided that the gift is to be invested and only the income of the fund may be spent. 

Those funds which are neither endowment nor restricted income funds, are unrestricted income funds which are sub analysed between designated (earmarked) funds where the trustees have set aside amounts to be used for specific purposes or which reflect the non-binding wishes of donors and unrestricted funds which are at the trustees’ discretion, including the general funds which represent the charity’s reserves. The major funds held in each of these categories are disclosed in note 19. 

## **Income** 

All income is recognised once the charity has entitlement to the resources, it is probable (more likely than not) that the resources will be received and the monetary value of income can be measured with sufficient reliability. Where there are terms or conditions attached to income, particularly grants, then these terms or conditions must be met before the income is recognised as the entitlement condition will not be satisfied until that point. 

Where terms or conditions have not been met or uncertainty exists as to whether they can be met then the relevant income is not recognised in the year but deferred and shown on the balance sheet as deferred income. 

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

- Confirmation has been received from the 

- representatives of the estate(s) that probate has been granted 

- The executors have established that there are sufficient assets in the estate to pay the legacy and 

- All conditions attached to the legacy have been fulfilled or are within the charity’s control. 

UCLH CHARITY ANNUAL REPORT & ACCOUNTS 2022–23 **33** 



**FINANCIAL STATEMENTS NOTES TO THE ACCOUNTS** 

The income received from the invested endowment funds is wholly restricted. 

Donated goods given for use by the group are valued and recognised as income and expenditure in the statement of financial activities at the value the charity estimates it would pay in the open market for equivalent goods where this can be reliably estimated. 

## **Expenditure and irrecoverable VAT** 

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

- There is a present legal or constructive obligation resulting from a past event 

- It is more likely than not that a transfer of benefits (usually a cash payment) will be required in settlement 

- The amount of the obligation can be measured or estimated reliably. 

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

Grants payable are payments made to linked, related party or third party NHS bodies, in furtherance of the charity’s objectives. Grant payments are recognised as expenditure when the conditions for their payment have been met or where there is a constructive obligation to make a payment. A constructive obligation arises when: 

- We have communicated our intention to award a grant to a recipient who then has a reasonable expectation that they will receive a grant; 

- We have made a public announcement about a commitment which is specific enough for the recipient to have a reasonable expectation that they will receive a grant; and 

- There is an established pattern of practice which indicates to the recipient that we will honour our commitment. 

The trustees have control over the amount and timing of grant payments and consequently where approval has been given by the trustees and any of the above criteria have been met then a liability is recognised. Grants are not usually awarded with conditions attached. However, when they are, then those conditions have to be met before the liability is recognised. 

## **Allocation of support costs** 

Support costs are those costs which do not relate directly to a single activity. These include staff costs, costs of administration, legal fees and audit fees. Support costs have been apportioned between costs of raising funds and charitable activities on an appropriate basis. The analysis of support costs and the bases of apportionment applied are shown in note 9. 

## **Costs of raising funds** 

The costs of raising funds are those costs attributable to generating income for the charity, other than those costs incurred in undertaking charitable activities or the costs incurred in undertaking trading activities in furtherance of the charity’s objects. The costs of raising funds represent fundraising costs together with the operating costs of the charity’s subsidiary companies, investment management fees and property management costs. 

## **Charitable activities** 

Costs of charitable activities comprise all costs incurred in the pursuit of the charitable objects of the charity. These costs, where not wholly attributable, are apportioned between the categories of charitable expenditure in addition to the direct costs. The total costs of each category of charitable expenditure include an apportionment of support costs as shown in note 8. 

## **Tangible fixed assets and depreciation** 

Neither the charity nor its subsidiary companies have a strict monetary limit below which fixed assets are not capitalised. Instead, each asset or group of assets is considered separately and capitalised if appropriate, unless the value is clearly negligible. 

Depreciation is provided on all tangible fixed assets at rates calculated to write off the cost less estimated residual value of each asset evenly over its expected useful life, as follows: 

|useful life, as follows:||
|---|---|
|Leasehold improvements|Over the term|
||of the lease|
|Furniture, medical and office equipment|3 to 5 years|
|Computer equipment|2 to 3 years|



The carrying values of tangible fixed assets are reviewed for impairment in periods if events or changes in circumstances indicate that the carrying value may not be recoverable. 

Land and buildings are subject to revaluation and are not depreciated. Formal valuations for land and buildings are usually carried out by a professional valuer at five yearly intervals and a formal valuation was carried out by CBRE and Hudsons at 31 March 2023. Between formal valuations, desktop valuations are provided by a professional valuer, which are used to value the freehold 

**34** UCLH CHARITY ANNUAL REPORT & ACCOUNTS 2022–23 



**FINANCIAL STATEMENTS NOTES TO THE ACCOUNTS** 

land and buildings in the accounts at the year end date. Valuation gains and losses are credited (or debited) to other gains or losses within the statement of financial activities with the balance sheet reflecting the revalued amounts. Any revaluation losses in excess of previously recognised revaluation gains are shown within the appropriate heading of expenditure. 

## **Investments** 

Listed investments are a form of basic financial investments are a form of basic financial instrument and are included in the accounts at their market value as at the balance sheet date. Investment portfolios are held with Sarasin & Partners LLP, Cazenove Capital Management and CCLA. For Sarasin & Partners LLP and Cazenove Capital Management, quoted stocks and shares are included in the balance sheet at bid price at close of business on the valuation date. Realised and unrealised gains (or losses) are credited (or debited) to the statement of financial activities in the year in which they arise. 

The charity does not acquire put options, derivatives or other complex financial instruments. 

Formal valuations for land and buildings are usually carried out by a professional valuer at five yearly intervals and a formal valuation was carried out by CBRE and by Hudsons at 31 March 2023. Between formal valuations, desktop valuations are provided by a professional valuer, which are used to value the investment properties in the accounts at the year end date. Valuation gains and losses are credited (or debited) to the statement of financial activities with the balance sheet reflecting the revalued amounts. No depreciation is charged on investment properties. 

Investments in subsidiary companies are valued at cost with provision being made for any permanent diminution in value. 

## **Programme-related loans** 

Programme-related loans comprise loans made by the charity to related organisations in furtherance of UCLH Charity’s objectives. These are included in the balance sheet at the recoverable amount. 

## **Pension costs** 

Employees of the Old Charity at 31 March 2017 were entitled to join the NHS Pensions Scheme, an unfunded, defined benefit scheme that covers NHS employers, general practices and other bodies, allowed under the direction of the Secretary of State, in England and Wales. The scheme is not designed to be run in a way that would enable participating bodies to identify their share of the underlying Scheme assets and liabilities. Therefore, the Scheme is accounted for as if it were a defined contribution scheme: the cost to the charity of participating in the Scheme is taken as equal to the contributions payable to the Scheme for the accounting period. 

The Scheme is a final salary scheme. Since 1 April 2015 there have been two separate pension schemes covering NHS workers. The 1995/2008 Scheme closed with effect from 1 April 2015 except for some members entitled to continue in this Scheme through ‘Protection’ arrangements. On 1 April 2015 a new NHS Pension Scheme was introduced. This new Scheme covers all former members of the 1995/2008 Scheme not eligible to continue in that Scheme as well as new NHS employees on or after 1 April 2015. 

The Scheme is subject to a full actuarial valuation every four years, and an IAS 19 accounting valuation every year. The valuation of scheme liability in accordance with IAS 19 is carried out annually by the Scheme Actuary. The latest assessment of the liabilities of the Scheme is contained in the Scheme Actuary report, which forms part of the annual NHS Pension Scheme (England and Wales) Resource Account, published annually. These accounts can be viewed on the NHS Pensions website. 

A defined contribution scheme has been set up for employees who join the New Charity. Contributions are charged on a payable basis. 

QS Enterprises Ltd contributes to the personal pension schemes of all employees, other than directors. Contributions are charged to the statement of financial activities as they become payable in accordance with the contribution rates agreed with the relevant employees. 

## **Cash at bank and in hand** 

Cash at bank and in hand represents such accounts and instruments that are available on demand or have a maturity of less than three months from the date of acquisition. 

UCLH CHARITY ANNUAL REPORT & ACCOUNTS 2022–23 **35** 



**FINANCIAL STATEMENTS NOTES TO THE ACCOUNTS** 

## **Leased assets** 

Rentals paid under operating leases are charged to income on a straight line basis over the lease term. 

Assets held under finance leases, which are leases where substantially all the risk and rewards of ownership of the asset have passed to the company, are capitalised in the balance sheet and are depreciated over their useful lives. The capital elements of future obligations under finance leases are included as liabilities in the balance sheet. 

The interest elements of the rental obligations are charged to the statement of financial activities over the period of the leases and represent a constant proportion of the balance of capital repayments outstanding. 

## **Debtors** 

Debtors are recognised at their settlement amount, less any provision for non-recoverability. Prepayments are valued at the amount prepaid. They have been discounted to the present value of the future cash receipt where such discounting is material. 

## **Creditors and provisions** 

Creditors and provisions are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Creditors and provisions are recognised at the amount the charity anticipates it will pay to settle the debt. They have been discounted to the present value of the future cash payment where such discounting is material. 

## **Financial instruments** 

The charity only holds basic financial instruments as defined in FRS 102. The financial assets and financial liabilities of the charity and their measurement basis are as follows: 

_Financial assets_ – other debtors are basic financial instruments and are debt instruments measured at amortised cost. 

Listed investments are a basic financial instrument as detailed above. Prepayments are not financial instruments. 

_Cash at bank_ – classified as a basic financial instrument and is measured at face value 

_Financial liabilities_ – accruals and other creditors are financial instruments, and are measured at amortised cost. 

**36** UCLH CHARITY ANNUAL REPORT & ACCOUNTS 2022–23 



**FINANCIAL STATEMENTS NOTES TO THE ACCOUNTS** 

## 01 **Comparative consolidated statement of financial activities split between funds** 

- **FOR THE YEAR ENDED 31 MARCH 2022** 

|**FOR THE YEAR ENDED 31 MARCH 2022**||||||
|---|---|---|---|---|---|
||||||**2022**|
|||Unrestricted|Restricted|Endowment|**Total**|
|||Funds|Funds|Funds|**Funds**|
||Note|£’000|£’000|£’000|**£’000**|
|**Income and endowments from:**||||||
|Donations and legacies|3|7,251|8,365|–|**15,616**|
|Charitable activities||1,015|–|–|**1,015**|
|Other trading activities||||||
|Turnover of QS Enterprises Ltd|4|5,787|–|–|**5,787**|
|Other fundraising activities||48|–|–|**48**|
|Investments|7|4,058|77|–|**4,135**|
|Other||–|–|–|–|
|**Total income**||**18,159**|**8,442**|**–**|**26,601**|
|**Expenditure on:**||||||
|Raising funds||||||
|Costs of generating donations and legacies||828|8|–|**836**|
|Fundraising trading expenditure||||||
|Operating costs of QS Enterprises Ltd|4|5,061|–|–|**5,061**|
|Operating costs of Middlesex Annexe LLP|6|3,569|–|–|**3,569**|
|Other||7|–|–|**7**|
|Investment management costs||||||
|Costs of managing quoted investments||136|9|23|**168**|
|Costs of managing, maintaining and||||||
|repairing investment properties||873|–|–|**873**|
|Bank interest and charges on loan relating||||||
|to investment properties||943|–|–|**943**|
|Charitable activities|8|||||
|Medical equipment and infrastructure costs||2,366|607|–|**2,973**|
|Provision of staff and professional services||3,505|4|–|**3,509**|
|Patient welfare and amenities||1,966|4|–|**1,970**|
|Medical research||1,734|2|–|**1,736**|
|Staff education and development||1,817|2|–|**1,819**|
|**Total expenditure**||**22,805**|**636**|**23**|**23,464**|
|Net (expenditure)/income before investment gains||(4,646)|7,806|(23)|**(3,137)**|
|Netgains on investments|15|1,298|67|331|**1,696**|
|**Net (expenditure)/income and net movement in funds**||**(3,348)**|**7,873**|**308**|**4,833**|
|**Reconciliation of funds**||||||
|Total funds brought forward|19|132,468|3,589|7,910|**143,967**|
|**Total funds carried forward**|19|**129,120**|**11,462**|**8,218**|**148,800**|



UCLH CHARITY ANNUAL REPORT & ACCOUNTS 2022–23 **37** 



**FINANCIAL STATEMENTS NOTES TO THE ACCOUNTS** 

## 02 **Comparative charity only statement of financial activities split between funds** 

**FOR THE YEAR ENDED 31 MARCH 2022** 

|**FOR THE YEAR ENDED 31 MARCH 2022**||||||
|---|---|---|---|---|---|
||||||**2022**|
|||Unrestricted|Restricted|Endowment|**Total**|
|||Funds|Funds|Funds|**Funds**|
||Note|£’000|£’000|£’000|**£’000**|
|**Income and endowments from:**||||||
|Donations and legacies||7,251|8,365|–|**15,616**|
|Charitable activities||1,015|–|–|**1,015**|
|Other fundraising activities||48|–|–|**48**|
|Investments||5,990|77|–|**6,067**|
|Other||70|–|–|**70**|
|**Total income**||**14,374**|**8,442**|**–**|**22,816**|
|**Expenditure on:**||||||
|Raising funds||||||
|Costs of generating donations and legacies||828|8|–|**836**|
|Fundraising trading expenditure||||||
|Provision for doubtful debts due from subsidiary undertakings||18,683|–|–|**18,683**|
|Other||7|–|–|**7**|
|Investment management costs||||||
|Costs of managing quoted investments||136|9|23|**168**|
|Costs of managing, maintaining and||||||
|repairing investment properties||873|–|–|**873**|
|Bank interest and charges on loan relating||||||
|to investment properties||943|–|–|**943**|
|Charitable activities|8|||||
|Medical equipment and infrastructure costs||2,366|607|–|**2,973**|
|Provision of staff and professional services||3,505|4|–|**3,509**|
|Patient welfare and amenities||1,966|4|–|**1,970**|
|Medical research||1,734|2|–|**1,736**|
|Staff education and development||1,817|2|–|**1,819**|
|**Total expenditure**||**32,858**|**636**|**23**|**33,517**|
|Net (expenditure)/income before investment gains||(18,484)|7,806|(23)|**(10,701)**|
|Netgains on investments|15|1,298|67|331|**1,696**|
|**Net (expenditure)/income and net movement in funds**||(17,186)|7,873|308|**(9,005)**|
|**Reconciliation of funds**||||||
|Total funds brought forward|19|146,253|3,589|7,910|**157,752**|
|**Total funds carried forward**|19|**129,067**|**11,462**|**8,218**|**148,747**|



**38** UCLH CHARITY ANNUAL REPORT & ACCOUNTS 2022–23 



**FINANCIAL STATEMENTS NOTES TO THE ACCOUNTS** 

## 03 **Donations and legacies** 

|||<br>|
|---|---|---|
|<br> <br>||**2023**<br>2022|
|||**Unrestricted**<br>**Restricted  Endowment**<br>**Total**<br>Unrestricted  Restricted<br>Endowment<br>Total<br>**Funds**<br>**Funds**<br>**Funds**<br>**Funds**<br>Funds<br>Funds<br>Funds<br>Funds<br> **£’000**<br>**£’000**<br>**£’000**<br>**£’000**<br>£’000<br>£’000<br>£’000<br>£’000|
||Donations<br>Legacies<br>Grants|**6,737**<br>**265**<br>**–**<br>**7,002**<br>6,260<br>265<br>–<br>6,525<br>**525**<br>**–**<br>**–**<br>**525**<br>393<br>–<br>–<br>393<br>**803**<br>**20,000**<br>**–**<br>**20,803**<br>598<br>8,100<br>–<br>8,698|
|||**8,065**<br>**20,265**<br>**–**<br>**28,330**<br>7,251<br>8,365<br>–<br>15,616|



Donations exclude gifts in kind received during the year, as it is not possible to put a value on what the charity would have paid for these items. 

Grants include £20m from UCLH NHS Foundation Trust for the charity to improve the patient experience at UCLH. 

## 04 **QS Enterprises Ltd** 

The charity’s wholly owned subsidiary, QS Enterprises Ltd, is incorporated in England and Wales (company number 01850377). Its principal activity is the provision of clinical imaging services to patients of NHS and private hospitals. QS Enterprises Ltd donates its taxable profit, if any, to UCLH Charity. A summary of its results is shown below. Separately audited accounts 

for the company are filed with the Registrar of Companies. The share capital of QS Enterprises Ltd has a nominal value of £2. 

|of £2.|||
|---|---|---|
||**2023**|2022|
||**Total**|Total|
||**£’000**|£’000|
|Turnover|**6,036**|5,787|
|Operating expenses|**(5,241)**|(4,923)|
|Audit fee|**(23)**|(17)|
|Bank interest receivable|**2**|–|
|Interestpayable|**(315)**|(191)|
|Profit for the year|**459**|656|
|Reserves brought forward|**53**|(603)|
|**Reserves carried forward**|**512**|53|



UCLH CHARITY ANNUAL REPORT & ACCOUNTS 2022–23 **39** 



**FINANCIAL STATEMENTS NOTES TO THE ACCOUNTS** 

## 05 **Middlesex UCLHC Ltd** 

The charity’s wholly owned subsidiary, Middlesex UCLHC Ltd, is incorporated in England and Wales (company number 10821655). The company operates as a holding company in order to facilitate the development of the site of the former Middlesex Hospital Annexe. It was incorporated on 15 June 2017 and began trading on 1 April 2018. It donates its taxable profit, if any, to UCLH Charity. A summary of its results is shown below. Separately audited accounts for the company are filed with the Registrar of Companies. The share capital of Middlesex UCLHC Ltd has a nominal value of £1. 

|order to facilitate the development of the site of the former Middlesex Hospital Annexe. It was<br>incorporated on 15 June 2017 and began trading on 1 April 2018. It donates its taxable profit,<br>if any, to UCLH Charity. A summary of its results is shown below. Separately audited accounts<br>for the company are filed with the Registrar of Companies. The share capital of Middlesex<br>UCLHC Ltd has a nominal value of £1.|||
|---|---|---|
||**2023**|2022|
||**Total**|Total|
||**£’000**|£’000|
|Turnover|**208**|198|
|Operating expenses|**(210)**|(200)|
|Audit fee|**(3)**|(3)|
|Loss for the year|**(5)**|(5)|
|Interest receivable|**2,897**|1,622|
|Interestpayable|**(2,892)**|(1,617)|
|Profit for the year|**–**|–|
|Reserves brought forward|**–**|–|
|**Reserves carried forward**|**–**|–|



## 06 **Middlesex Annexe LLP** 

This limited liability partnership has registered number OC417941 and consists of two partners, UCLH Charity and Middlesex UCLHC Ltd. The LLP was formed on 28 June 2017 and began trading on 1 April 2018. Its principal activity is property development and its aim is to maximise profits for its members. A summary of its results is shown below. Separately audited accounts for the LLP are filed with the Registrar of Companies. 

||**2023**<br>2022<br> **Total**<br>Total<br>**£’000**<br>£’000<br>Operating expenses<br>**(556)**<br>(542)<br>Audit fee<br>**(4)**<br>(4)<br>Interest payable<br>**(4,179)**<br>(1,932)<br>Impairment on asset under construction(see note 14)<br>**11,887**<br>(3,023)<br>Loss for the year<br>**7,148**<br>(5,501)<br>Losses brought forward<br>**(18,683)**<br>(13,182)<br>**Losses carried forward**<br>**(11,535)** (18,683)|
|---|---|



## 07 **Investment income** 

|**Investment income**||
|---|---|
||**2023**<br> 2022<br> **Unrestricted**<br>**Restricted  Endowment**<br> **Total**<br>Unrestricted  Restricted<br>Endowment<br>Total<br>**Funds**<br>**Funds**<br>**Funds**<br>**Funds**<br>Funds<br>Funds<br>Funds<br>Funds<br>**£’000**<br>**£’000**<br>**£’000**<br>**£’000**<br>£’000<br>£’000<br>£’000<br>£’000<br>**3,229**<br>**–**<br>**–**<br>**3,229**<br>3,396<br>–<br>–<br>3,396<br>**603**<br>**96**<br>**–**<br>**699**<br>615<br>37<br>–<br>652<br> <br>**–**<br>**37**<br>**–**<br>**37**<br>–<br>40<br>–<br>40<br>**–**<br>**–**<br>**–**<br>**–**<br>–<br>–<br>–<br>–<br>**601**<br>**–**<br>**–**<br>**601**<br>47<br>–<br>–<br>47<br>**4,433**<br>**133**<br>**–**<br>**4,566**<br>4,058<br>77<br>–<br>4,135|
|Investment properties<br>Listed investments<br>Common deposit or<br>common investment funds<br>Investment cash<br>Other investments||
|||



**40** UCLH CHARITY ANNUAL REPORT & ACCOUNTS 2022–23 



**FINANCIAL STATEMENTS NOTES TO THE ACCOUNTS** 

## 08 **Charitable activities** 

|**Charitable activities**||
|---|---|
||**2023**<br>2022<br>**Grant**<br>Grant<br> **Activities**<br>**funded**<br>**Support**<br>Activities<br>funded<br>Support<br>**undertaken  activities**<br>**costs**<br>**Total**<br>undertaken  activities<br>costs<br>Total<br>**directly**<br>**(note 10)**<br>**(note 9)**<br>**Funds**<br>directly<br>(note 10)<br>(note 9)<br>Funds<br>**£’000**<br>**£’000**<br>**£’000**<br>**£’000**<br>£’000<br>£’000<br>£’000<br>£’000<br>**1,231**<br>**–**<br>**76**<br>**1,307**<br>2,532<br>257<br>184<br>2,973<br>**2,968**<br>**–**<br>**185**<br>**3,153**<br>2,827<br>465<br>217<br>3,509<br>**1,196**<br>**1,000**<br>**137**<br>**2,333**<br>1,102<br>746<br>122<br>1,970<br>**652**<br>**542**<br>**74**<br>**1,268**<br>913<br>716<br>107<br>1,736<br>**2,828**<br>**961**<br>**235**<br>**4,024**<br>1,596<br>110<br>113<br>1,819<br>**8,875**<br>**2,503**<br>**707**<br>**12,085**<br>8,970<br>2,294<br>743<br>12,007|
|Improvements to patient services<br>Medical equipment and<br>infrastructure costs<br>Provision of staff and<br>professional services<br>Patient welfare and amenities<br>Medical research<br>Staff education and development||
|||



The charity has a number of designated discretionary funds where decisions over spending are delegated to ward or consultant level, under the oversight of officers of the charity. Direct expenditure from these funds delivered a significant proportion of the activities of the charity. More details are given in the Report of the Trustees. 

## 09 **Support costs – apportionment** 

|Expenditure type<br>Basis of apportionment||**2023**<br>**Charitable activities**<br>**Staff &**<br>**Patient**<br>**Staff**<br> <br>**professional**<br>**welfare &**<br>**Medical  education &**<br>**Totals**<br>**Equipment**<br>**services**<br>**amenities**<br>**research development**<br>**costs**<br> <br>**£’000**<br>**£’000**<br>**£’000**<br>**£’000**<br>**£’000**<br>**£’000**<br>**50**<br>**122**<br>**90**<br>**49**<br>**155**<br>**745**<br>**3**<br>**8**<br>**6**<br>**3**<br>**10**<br>**81**<br>**15**<br>**36**<br>**27**<br>**15**<br>**46**<br>**222**<br>**8**<br>**19**<br>**14**<br>**7**<br>**24**<br>**126**<br>**76**<br>**185**<br>**137**<br>**74**<br>**235**<br>**1,174**|
|---|---|---|
||**Raising**<br>**funds**<br>**£’000**||
|Charity staff salaries Time<br>Governance<br>Proportional to salaries<br>Premises costs<br>Proportional to salaries<br>Other office and<br>Proportional to salaries<br>sundrycosts|**279**<br>**51**<br>**83**<br>**54**||
||**467**||



|Expenditure type<br>Basis of apportionment||2022<br>Charitable activities<br>Staff &<br>Patient<br>Staff<br> <br>professional<br>welfare &<br>Medical<br>education &<br>Totals<br> <br>Equipment<br>services<br>amenities research development<br>costs<br> <br>£’000<br>£’000<br>£’000<br>£’000<br>£’000<br>£’000<br>110<br>130<br>73<br>64<br>68<br>674<br>5<br>6<br>3<br>3<br>3<br>58<br>45<br>53<br>30<br>26<br>27<br>274<br>24<br>28<br>16<br>14<br>15<br>162<br>184<br>217<br>122<br>107<br>113<br>1,168|
|---|---|---|
||Raising<br>funds<br>£’000||
|Charity staff salaries Time<br>Governance<br>Proportional to salaries<br>Premises costs<br>Proportional to salaries<br>Other office and<br>Proportional to salaries<br>sundrycosts|229<br>38<br>93<br>65||
||425||



UCLH CHARITY ANNUAL REPORT & ACCOUNTS 2022–23 **41** 



**FINANCIAL STATEMENTS NOTES TO THE ACCOUNTS** 

## 10 **Analysis of grants** 

|**Analysis of grants**||
|---|---|
||**2023**<br>2022<br>**Number of**<br>**Aggregate**<br>Number of<br>Aggregate<br>**grants  amount paid**<br>grants  amount paid<br>**£’000**<br>£’000<br>**–**<br>**0**<br>2<br>257<br>**–**<br>**0**<br>3<br>465<br>**7**<br>**1,000**<br>9<br>746<br>**4**<br>**542**<br>2<br>716<br>**7**<br>**961**<br>2<br>110<br>**18**<br>**2,503**<br>18<br>2,294|
|Medical equipment and infrastructure costs<br>Provision of staff and professional services<br>Patient welfare and amenities<br>Medical research<br>Staff education and development||
|||



All grants were to UCL Hospitals NHS Foundation Trust. 

## 11 **Net movement in funds** 

||**Net movement in funds**||
|---|---|---|
|<br> <br>|This is stated after charging:|**2023**<br>2022<br>**Unrestricted  Restricted  Endowment**<br>**Total**<br>Unrestricted  Restricted Endowment<br>Total<br>**Funds**<br>**Funds**<br>**Funds** **Funds**<br>Funds<br>Funds<br>Funds Funds<br>**£’000**<br>**£’000**<br>**£’000**<br>**£’000**<br>£’000<br>£’000<br>£’000 £’000<br>**2,448**<br>**–**<br>**–  2,448**<br>2,686<br>–<br>–  2,686<br>**30**<br>**–**<br>**–**<br>**30**<br>26<br>–<br>–<br>26<br>**30**<br>**–**<br>**–**<br>**30**<br>24<br>–<br>–<br>24<br>**4**<br>**–**<br>**–**<br>**4**<br>7<br>–<br>–<br>7<br>**638**<br>**–**<br>**–**<br>**638**<br>574<br>–<br>–  574<br>**640**<br>**–**<br>**–**<br>**640**<br>543<br>–<br>–  543|
||Staff costs (note 12)<br>Auditors’ remuneration<br>Statutory audit services,<br>charity only<br>– Current year<br>Statutory audit services,<br>subsidiary companies<br>Other services<br>Depreciation<br>Operatinglease charges||



**42** UCLH CHARITY ANNUAL REPORT & ACCOUNTS 2022–23 



**FINANCIAL STATEMENTS NOTES TO THE ACCOUNTS** 

|12|**Staf costs**<br>**2023**<br>2022<br>**Total**<br>Total<br>**Funds**<br>Funds<br>**£’000**<br>£’000<br>Wages and salaries<br>**1,940**<br>2,281<br>Employer’s national insurance costs<br>**264**<br>250<br>Pension costs<br>**244**<br>155<br> <br>**2,448**<br>2,686|
|---|---|



The average number of employees, analysed by function, was: 

|The average number of employees, analysed by function, was:||
|---|---|
||Headcount<br>Full time equivalent<br>**2023**<br>2022<br>**2023**<br>2022<br>**11**<br>11<br>**10**<br>10<br>**36**<br>40<br>**36**<br>40<br>**47**<br>51<br>**46**<br>50|
|Charity employees<br>Staff of tradingsubsidiaries||
|||



The number of senior employees whose emoluments for the year amounted to £60,000 or more were: 

||**2023**<br>2022<br>Charity<br>Subsidiaries<br>**Total**<br>Charity<br>Subsidiaries<br>Total<br>–<br>2<br>**2**<br>–<br>1<br>1<br>1<br>2<br>**3**<br>–<br>2<br>2<br>–<br>–<br>**–**<br> 2<br>–<br>2<br>1<br>–<br>**1**<br> –<br>–<br>–<br>–<br>1<br>**1**<br>–<br>1<br>1<br>1<br>–<br>**1**<br>1<br>–<br>1<br>1<br>–<br>**1**<br>1<br>–<br>1<br>4<br>5<br>**9**<br>4<br>4<br>8|
|---|---|
|£60,001 – £70,000<br>£70,001 – £80,000<br>£80,001 – £90,000<br>£90,001 – £100,000<br>£130,001 – £140,000<br>£140,001 – £150,000<br>£190,001 – £200,000||
|||



The key management personnel of the charity comprise the Chief Executive, the Development Director, the Chief Operating Officer, the Finance Director (in post until 31st December 2022) and the Head of Finance (in post from 12th September 2022). The total remuneration paid to the key management personnel including employer’s national insurance and pension contributions was £655k (2022: £608k). 

Benefits were accruing to none of the above members of staff at the charity’s subsidiary company QS Enterprises Ltd under the defined benefit pension scheme outlined under accounting policies (2022: one member of staff). Contributions of £34k (2022: £13k) were made to purchase defined contribution pension benefits on behalf of five (2022: one) of the above members of staff at the charity’s subsidiary company QS Enterprises Ltd. 

Trustee meeting expenses totalled £3,263 in the year (2022: £4,439). None of the trustees received remuneration during this or the preceding year. Expenses totalling £Nil were reimbursed to any trustee (2022: £314 to one trustee). 

The charity has purchased insurance to protect trustees from claims arising from negligent acts, errors or omissions occurring whilst on charity business. The insurance policy provides cover up to £3m (2022: £3m) and the cost for the year ended 31 March 2023 was £5k (2022: £3k). 

UCLH CHARITY ANNUAL REPORT & ACCOUNTS 2022–23 **43** 



**FINANCIAL STATEMENTS NOTES TO THE ACCOUNTS** 

## 13 **Taxation** 

UCLH Charity is a registered charity and therefore is not liable to income tax or corporation tax on income derived from its charitable activities, as it falls within the various exemptions available to registered charities. Its wholly owned subsidiaries donate their taxable profits, if any, to the charity. 


## 14 **Tangible assets** 

||**Tangible assets**|||||||
|---|---|---|---|---|---|---|---|
|||||**Group**||||
||||||Furniture,|||
|||Land &|Assets||medical &|||
|||buildings|under|Leasehold|office|Computer||
|||(charity only)|construction|improvements|equipment|equipment|**Total**|
|||£’000|£’000|£’000|£’000|£’000|**£’000**|
||Cost or valuation|||||||
||Brought forward at 1 April 2022|9,090|40,525|4,441|4,328|814|**59,198**|
||Additions|–|19,724|–|1,773|20|**21,517**|
||Revaluation|2,160|–|–|–|–|**2,160**|
||Reversal of impairment of asset|–|11,887|–|–|–|**11,887**|
||under construction|||||||
||Balance at 31 March 2023|11,250|72,136|4,441|6,101|834|**94,762**|
||Accumulated depreciation|||||||
||Brought forward at 1 April 2022|–|–|<br>1,933|1,988|714|**4,635**|
||Charge for theyear|–|–|<br>214|381|43|**638**|
||Balance at 31 March 2023|–|–|<br>2,147|2,369|757|**5,273**|
||Net book value at 31 March 2023|11,250|72,136|2,294|3,732|77|**89,489**|
||Net book value at 31 March 2022|9,090|40,525|2,508|2,340|100|**54,563**|



Land and buildings are held by the charity only. They were revalued as at 31 March 2023 by independent valuers on a fair value basis in accordance with IFRS 13. 

Assets under construction consist of the Bedford Passage Development, which was transferred from the charity to Middlesex Annexe LLP on 1 April 2018. At 31 March 2023 the purchase cost of the property and the associated planning and professional fees and building costs were £72.1m (2022: £52.4m), less an impairment of £Nil (2022 (£11.9m). Just after the year end the final position with Camden Council about the tenure mix of the residential part of the property development was confirmed. The most recent valuations and cost projections showed that if the expected worse case outcome occurred, the development was likely to make a surplus (2022: a deficit of £11.9m). The 2022 figure had been included as an impairment in the accounts at the year end 31 March 2022 but has been reversed in the accounts at the year end 31 March 2023. The project is expected to be completed in late 2024 and there remains considerable uncertainty over the final value of the property at that point. Project costs have been been severely affected by the Covid-19 pandemic and other national and international events, but the board is hopeful that they will have recovered by the time of completion. 

**44** UCLH CHARITY ANNUAL REPORT & ACCOUNTS 2022–23 



**FINANCIAL STATEMENTS NOTES TO THE ACCOUNTS** 

## 15 **Listed investments and investment properties – group and charity** 

||**2023**<br>2022|
|---|---|
||**Listed   Investment**<br>Listed<br>Investment<br>**investments**<br>**property**<br>**Total**<br>investments<br>property<br>Total<br>**£’000**<br>**£’000**<br> **£’000**<br>£’000<br>£’000<br>£’000|
|Market value at 1 April<br>Add: acquisitions at cost<br>Less: disposals at carrying value<br>Net unrealised(losses)/gain on revaluation|**31,552**<br>**61,190**<br>**92,742**<br>40,985<br>61,190<br>102,175<br>**22,414**<br>**–**<br>**22,414**<br>38,730<br>–<br>38,730<br>**(30,761)**<br>**–**<br>**(30,761)**<br>(48,751)<br>–<br>(48,751)<br>**(272)**<br>**(2,600)**<br>**(2,872)**<br>588<br>–<br>588|
|**Market value at 31 March**|**22,933**<br>**58,590**<br>**81,523**<br>31,552<br>61,190<br>92,742|
|Historic cost at 31 March|**23,124**<br>**42,928**<br>**66,052**<br>30,018<br>42,928<br>72,946|



Disposal proceeds during the year amounted to £29.0m (2022: £49.9m). 

Analysis of listed investments and investment properties – group and charity: 

||**2023**<br>2022|
|---|---|
||**Held in**<br>**Held**<br>Held in<br>Held<br>**the UK**<br>**overseas**<br>**Total**<br>the UK<br>overseas<br>Total<br> **£’000**<br>**£’000**<br>**£’000**<br>£’000<br>£’000<br>£’000|
|Investment properties – charity<br>Investments listed in the stock exchange<br>or valued by reference to such investments<br>Investments in common deposit or<br>common investment funds<br>Cash held aspart of investmentportfolio|**58,590**<br>**–**<br>**58,590**<br>61,190<br>–<br>61,190<br> **465**<br>**1,022**<br>**1,487**<br>3,973<br>25,459<br>29,432<br>**1,276**<br>**–**<br>**1,276**<br>1,327<br>–<br>1,327<br>**20,170**<br>**–**<br>**20,170**<br>793<br>–<br>793|
|**Total investments –group and charity**|**80,501**<br>**1,022**<br>**81,523**<br>67,283<br>25,459<br>92,742|



The trustees consider the following individual investment holdings at 31 March 2023 to be material: 

|The trustees consider the following individual investment holdings|at 31 March 2023 to be material:||
|---|---|---|
||Listed|Investment|
||investments|properties|
||£’000|£’000|
|170 Tottenham Court Road, London|–|48,000|
|68 and 70 Huntley Street, London|–|4,590|
|69–75 Chenies Mews, London|–|6,000|
|CCLA COIF|1,276|–|



UCLH CHARITY ANNUAL REPORT & ACCOUNTS 2022–23 **45** 



**FINANCIAL STATEMENTS NOTES TO THE ACCOUNTS** 

## 16 **Debtors** 

|**Debtors**||
|---|---|
||Group<br>Charity|
||**2023**<br>2022<br>**2023**<br>2022<br>**£’000**<br>£’000<br>**£’000**<br>£’000|
|**Amounts falling due within one year:**<br>Trade debtors<br>Prepayments<br>Accrued income<br>Due from subsidiary undertakings<br>Other debtors|**21,763**<br>10,105<br>**21,231**<br>9,182<br>**3,708**<br>628<br>**153**<br>136<br>**689**<br>433<br>**689**<br>433<br>**–**<br>–<br>**133**<br>70<br>**2,423**<br>2,439<br>**1,915**<br>1,607|
|Total debtors fallingdue within oneyear|**28,583**<br>13,605<br>**24,121**<br>11,428|
|**Amounts falling due after more than one year:**<br>Due from subsidiaryundertakings|**–**<br>–<br>**76,065**<br>43,186|
|Total debtors fallingdue after more than oneyear|**–**<br>–<br>**76,065**<br>43,186|
|**Total debtors**|**28,583**<br>13,605<br>**100,186**<br>54,614|



Amounts due to the charity from subsidiary undertakings are shown net of a provision for doubtful debts of £11,535k (2022:–£18,683k). 

## 17 **Creditors: amounts falling due within one year** 

|**Creditors: amounts falling due within one year**||
|---|---|
||Group<br>Charity|
||**2023**<br>2022<br>**2023**<br>2022<br>**£’000**<br>£’000<br>**£’000**<br>£’000|
|Trade creditors<br>Other creditors<br>Grant creditors<br>Accruals<br>Deferred income<br>Hirepurchase contracts|**1,473**<br>1,447<br>**389**<br>510<br>**2,198**<br>973<br>**1,299**<br>241<br>**18,598**<br>19,302<br>**18,598**<br>19,302<br>**2,664**<br>2,290<br>**1,054**<br>1,397<br>**6,058**<br>801<br>**6,058**<br>801<br>**886**<br>837<br>**–**<br>–|
||**31,877**<br>25,650<br>**27,398**<br>22,251|



## 18 **Creditors: amounts falling due after more than one year** 

|**Creditors: amounts falling due after more than one year**||
|---|---|
||Group<br>Charity|
||**2023**<br>2022<br>**2023**<br>2022<br>**£’000**<br>£’000<br>**£’000**<br>£’000|
|Hire purchase contracts<br>Other creditors<br>Bank loan|**2,433**<br>1,734<br>**–**<br>–<br>**–**<br>7<br>**–**<br>–<br>**30,000**<br>30,000<br>**30,000**<br>30,000|
||**32,433**<br>31,741<br>**30,000**<br>30,000|



The bank loan relates to an agreed 30 year facility with Reassure Limited repayable on 30 March 2051. The loan has a fixed interest rate of 3.16% and is secured on the charity’s freehold property, 170 Tottenham Court Road. 

Minimum lease payments on hire purchase contracts fall due between one and five years. 

**46** UCLH CHARITY ANNUAL REPORT & ACCOUNTS 2022–23 



**FINANCIAL STATEMENTS NOTES TO THE ACCOUNTS** 

19 **Analysis of net movement in funds** 

|**Analysis of net movement in funds**||||||||
|---|---|---|---|---|---|---|---|
||Total funds|||Transfers|Gains|**Total funds**||
||brought|Total|Total|between|and|**carried**||
||forward at|income|expenditure|funds|losses|**forward at**||
||1 April 2022|||||**31 March 2023**||
||£000|£000|£000|£000|£000|**£000**||
|Endowment funds:||||||||
|Otto Beit Fund|219|–|–|–|(8)|**211**||
|Dresden Assistance Fund|527|–|–|–|(20)|**507**||
|UCLH Spicer Samaritan Fund|298|–|–|–|(11)|**287**||
|Gordon Taylor Fund|304|–|–|–|(11)|**293**||
|David E Hughes Fund|2,195|–|(7)|–|(117)|**2,071**||
|UniversityCollege Hospital Fund|4,675|–|(7)|–|(109)|**4,559**||
|**Total endowment funds(group and charity)**|8,218|–|(14)|–|(276)|**7,928**||
|Restricted funds:||||||||
|Otto Beit Fund|151|13|(2)|–|(8)|**154**||
|Dresden Assistance Fund|366|32|(5)|–|(19)|**374**||
|UCLH Spicer Samaritan Fund|1,271|67|(21)|–|(67)|**1,250**||
|Gordon Taylor Fund|294|21|(4)|–|(14)|**297**||
|CancerCare at UCLH Fund|37|–|–|–|–|**37**||
|Institute of Sport Fund|893|–|–|–|–|**893**||
|Exilarch’s Foundation|350|265|(263)|–|–|**352**||
|Digital Innovation Hub|627|–|–|–|–|**627**||
|BioResource Facility|707|–|–|–|–|**707**||
|Clinical Research Facility|1,987|–|–|–|–|**1,987**||
|BSL-2 Lab|2,279|–|–|–|–|**2,279**||
|Clinical Apprenticeship|2,500|–|–|–|–|**2,500**||
|Transforming Patient Pathways|–|10,000|–|–|–|**10,000**||
|Environmentally Sustainable Hospital|–|3,000|–|–|–|**3,000**||
|Clinical Engagement Programme|–|2,000|–|–|–|**2,000**||
|Diagnostic Treatment Development|–|5,000|–|–|–|**5,000**||
|**Total restricted funds(group and charity)**|11,462|20,398|(295)|–|(108)|**31,457**||
|Unrestricted funds:||||||||
|General funds|55,859|9,630|637|32,038|(1,479)|**96,685**||
|Designated discretionary funds|54,244|7,992|(7,267)|(27,845)|(5)|**27,119**||
|Other designated funds|18,964|723|(1,193)|(4,193)|(505)|**13,796**||
|**Total unrestricted funds, charity**|129,067|18,345|(7,823)|–|(1,989)|**137,600**||
|Trading companies|53|1,726|(1,267)|–|–|**512**||
|**Total unrestricted funds, group**|129,120|20,071|(9,090)|–|(1,989)|**138,112**||
|**Total funds**|148,800|40,469|(9,399)|–|(2,373)|**177,497**||



UCLH CHARITY ANNUAL REPORT & ACCOUNTS 2022–23 **47** 



**FINANCIAL STATEMENTS NOTES TO THE ACCOUNTS** 

## 19 **Analysis of net movement in funds (continued)** 

||Total funds|||Transfers|Gains|**Total funds**|
|---|---|---|---|---|---|---|
||brought|Total|Total|between|and|**carried**|
||forward at|income|expenditure|funds|losses|**forward at**|
||1 April 2021|||||**31 March 2022**|
||£000|£000|£000|£000|£000|**£000**|
|Endowment funds:|||||||
|Otto Beit Fund|202|–|–|–|17|**219**|
|Dresden Assistance Fund|485|–|–|–|42|**527**|
|UCLH Spicer Samaritan Fund|274|–|–|–|24|**298**|
|Gordon Taylor Fund|281|–|–|–|23|**304**|
|David E Hughes Fund|2,133|–|(10)|–|72|**2,195**|
|UniversityCollege Hospital Fund|4,535|–|(13)|–|153|**4,675**|
|**Total endowment funds(group and charity)**|7,910|–|(23)|–|331|**8,218**|
|Restricted funds:|||||||
|Otto Beit Fund|139|9|(2)|–|5|**151**|
|Dresden Assistance Fund|337|22|(5)|–|12|**366**|
|UCLH Spicer Samaritan Fund|1,218|33|(21)|–|41|**1,271**|
|Gordon Taylor Fund|276|13|(4)|–|9|**294**|
|CancerCare at UCLH Fund|81|–|(44)|–|–|**37**|
|Institute of Sport Fund|893|–|–|–|–|**893**|
|Exilarch’s Foundation|645|265|(560)|–|–|**350**|
|Digital Innovation Hub|–|627|–|–|–|**627**|
|BioResource Project|–|707|–|–|–|**707**|
|Clinical Research Facility|–|1,987|–|–|–|**1,987**|
|BSL-2 Lab|–|2,279|–|–|–|**2,279**|
|Clinical Apprenticeship|–|2,500|–|–|–|**2,500**|
|**Total restricted funds, charity**|3,589|8,442|(636)|–|67|**11,462**|
|Unrestricted funds:|||||||
|General funds|77,517|7,001|(25,241)|(4,402)|984|**55,859**|
|Designated discretionary funds|53,970|6,923|(7,183)|527|7|**54,244**|
|Other designated funds|14,766|450|(434)|3,875|307|**18,964**|
|**Total unrestricted funds, charity**|146,253|14,374|(32,858)|–|1,298|**129,067**|
|Trading companies|(13,785)|3,785|(10,053)|–|–|**53**|
|**Total unrestricted funds, group**|132,468|18,159|(22,805)|–|1,298|**129,120**|
|**Total funds**|143,967|26,601|(23,464)|–|1,696|**148,800**|



**48** UCLH CHARITY ANNUAL REPORT & ACCOUNTS 2022–23 



**FINANCIAL STATEMENTS NOTES TO THE ACCOUNTS** 

## 19 **Analysis of net movement in funds (continued)** 

## **Fund descriptions** 

_Otto Beit Fund_ – to be applied for the benefit of patients suffering from arthritis and rheumatoid conditions. 

_Dresden Assistance Fund_ – to be applied for the benefit of inpatients of University College Hospital who are in need. 

_UCLH Spicer Samaritan Fund_ – for the relief of patients who have been treated at any hospital of UCLH NHS Foundation Trust. 

_Gordon Taylor Fund_ – to be applied for the benefit of incapacitated nurses of the former Middlesex Hospital or of University College Hospital. 

_David E Hughes Fund_ – to be applied for the general purposes of University College Hospital. 

_University College Hospital Fund_ – to be applied for the general purposes of UCH. 

_CancerCare at UCLH Fund_ – for any charitable purposes of UCLH NHS Foundation Trust relating to cancer research and the treatment, benefit and comfort of cancer patients. 

_Institute of Sport Fund_ – for the purpose of creating an Institute of Sport Exercise and Health, a facility for the treatment of athletes and people engaged in sports. 

_Exilarch’s Foundation Fund_ – to be applied for the Sir Naim Dangoor Centre for Cellular Immunotherapy. 

_Digital Innovation Hub Fund_ – for the purpose of developing, testing and implementing novel digital solutions into healthcare at UCLH and beyond. 

_BioResource Project Fund_ – for the purpose of piloting a study to integrate artificial intelligence delivery of healthcare and expand the use of genomics in the prevention of ill-health and delivery of more precise care. 

_Clinical Research Facility Fund_ – for the purpose of creating a Cancer Clinical Research Facility at UCLH with dedicated research beds for inpatient stays. 

_BSL-2 Lab Fund_ – for the purpose of establishing a Biosafety Level 2 facility for research and clinical trials for the advancement of cancer treatment. 

_Clinical Apprenticeship Fund_ – for the purpose of providing healthcare assistants and nursing associates with an opportunity to access a degree programme and join the registered nursing workforce at UCLH. 

_Transforming Patient Pathways Fund_ – for the purpose of supporting innovation in health care though investment in leading edge technology, driving improvements in patient care as well as making this care increasingly cost-effective. This is of critical importance to UCLH as the Trust seeks to deliver high-quality care within an ever tightening financial envelope. 

_Environmentally Sustainable Hospitals Fund_ – for the purpose of supporting investment in infrastructure that will deliver the Trust’s ambition to provide a carbon neutral service. 

_Clinical Engagement Programme Fund_ – for the purpose of supporting locally developed transformative improvements in patient care. These improvements need to be cost-effective, whilst facilitating innovation within health systems, aligned to UCLH priorities. 

_Diagnostic Treatment Development Fund_ – for the purpose of supporting the delivery of essential diagnostic care through investment in diagnostic infrastructure. 

Designated discretionary funds are funds operated on behalf of specific wards or consultants, where decisions over spending are delegated to ward or consultant level, under the oversight of officers of the charity. 

Other designated funds are funds which the trustees of the charity have chosen to designate for specific purposes. They include a fund held on behalf of the Royal London Hospital for Integrated Medicine, funds held for the National Hospital for Neurology and Neurosurgery as a result of the annual profit donated by QS Enterprises Ltd, various prize funds and funds created as a result of legacies given to the charity for specific purposes. 

**49** 

UCLH CHARITY ANNUAL REPORT & ACCOUNTS 2022–23 



**FINANCIAL STATEMENTS NOTES TO THE ACCOUNTS** 

## 20 **Reconciliation of accumulated unrealised gains** 

|**Reconciliation of accumulated unrealised gains**|||
|---|---|---|
||**2023**|2022|
||**£’000**|£’000|
|Unrealised gains included as part of net assets:|||
|On listed investments|**(191)**|1,534|
|On investmentproperties|**15,662**|18,262|
|**Total unrealisedgains at 31 March**|**15,471**|19,796|
|Reconciliation of movements in unrealised gains:|||
|Unrealised gains at 1 April|**19,796**|21,125|
|Less: in respect to disposals in the year|**(1,453)**|(1,917)|
|Less/(add): unrealised(losses)/gains inyear|**(2,872)**|588|
|**Total unrealisedgains at 31 March**|**15,471**|19,796|



## 21 **Reconciliation of net income to net cash flow from operating activities** 

||**Reconciliation of net income to net cash fow from operating activities**|||
|---|---|---|---|
|||**2023**|2022|
|||**£’000**|£’000|
||Net income/(expenditure)|**28,697**|4,833|
||Depreciation charges (note 14)|**638**|574|
||(Gains)/losses on impairment of tangible fixed asset (note14)||**(11,887)**|
||3,023|||
||Losses/(gains) on investments|**2,373**|(1,696)|
||Dividends, interest and rents from investments|**(4,566)**|(4,135)|
||Increase in debtors|**(14,978)**|(8,178)|
||Increase/(decrease)in creditors andprovisions|**6,171**|76|
||**Cash inflow/(outflow) from operating activities**|**6,448**|(5,503)|



## 22 **Commitments under non–cancellable operating leases** 

|**Commitments under non–cancellable operating leases**||
|---|---|
||Land and buildings<br>Other<br>**2023**<br>2022<br>**2023**<br>2022<br>**£’000**<br>£’000<br>**£’000**<br>£’000<br>**202**<br>275<br>**327**<br>358<br>**800**<br>842<br>**812**<br>939<br>**960**<br>1,119<br>**–**<br>–<br>**1,962**<br>2,236<br>**1,139**<br>1,297<br>**42**<br>115<br>**–**<br>–<br>**–**<br>42<br>**–**<br>–<br>**42**<br>157<br>**–**<br>–|
|As at 31 March the group had total commitments under<br>Non–cancellable operating leases which fall due:<br>within one year<br>within two to five years inclusive<br>over fiveyears||
|||
|As at 31 March the charity had total commitments under<br>Non–cancellable operating leases which fall due:<br>within one year<br>within two to fiveyears inclusive||
|||



**50** UCLH CHARITY ANNUAL REPORT & ACCOUNTS 2022–23 



**FINANCIAL STATEMENTS NOTES TO THE ACCOUNTS** 

## 23 **Other contractual commitments** 

As at 31 March 2023, the group had contractual commitments of £24.2m for building costs in relation to tangible fixed assets under construction contracted for but not accrued in the accounts at the year end (2022: £Nil). 

## 24 **Material legacies** 

Legacies are accounted for as income either upon receipt or where the receipt of the legacy is probable and the amount can be determined with reasonable accuracy. As at 31 March 2023 the charity had been notified of nil legacies (2022: one legacy) which was not included in income since the amount due to be received was not known. 

## 25 **Related party transactions** 

None of the trustees or members of the key management staff or parties related to them undertook any material transactions with UCLH Charity. 

The Essex Wynter Charity is a related party for UCLH Charity as the trustees of UCLH Charity appoint the trustees of the Essex Wynter Charity. The Essex Wynter Charity was charged a sum of £8k for the provision of accounting and administration services (2022: £8k). Its outstanding balance at the year end was £Nil (2022: £15k). 

The accounts do not include disclosure of transactions between the charity and its wholly owned trading subsidiaries due to the exemptions available under section 33 of FRS 102. 

UCLH CHARITY ANNUAL REPORT & ACCOUNTS 2022–23 **51** 



**FINANCIAL STATEMENTS** 

## Reference and administration information 

## **Name** 

University College London Hospitals Charity 

## **Registered charity number** 

1165398 

**Company number** 09980449 

## **Principal bankers** 

Coutts & Co, 440 Strand, London WC2R 0QS 

Handelsbanken, 5th Floor, 13 Charles II Street, London SW1Y 4QU 

## **Solicitors** 

## **Principal office** 

5th Floor East, 250 Euston Road, London NW1 2PG 

Withers LLP, 20 Old Bailey, London EC4M 7EG 

## **Investment advisors** 

## **Independent trustees** 

Lord Hemphill (chairman) Mr Nigel Keen Mr Adrian Parkhouse Mr James Petit 

## **Foundation Trust trustee** 

Dr Junaid Bajwa 

Sarasin & Partners LLP, Juxon House, 100 St Pauls Churchyard, London EC4M 9BU 

Cazenove Capital Management, 12 Moorgate, London EC2R 6DA 

CCLA Investment Management Ltd, 80 Cheapside, London EC2V 6DZ 

## **Clinical trustees** 

Prof Donald Peebles Prof Mervyn Singer (until 30 April 2023) Prof Ramani Moonesinghe (from 9 May 2023) 

## **Executive team** 

Philip Brading, Chief Executive Peter Burroughs, Development Director Zung To, Chief Operating Officer Josephine Webb, Finance Director (until 31 December 2022) Tim Redding, Head of Finance (from 12 September 2022) 

## **Investment property advisors** 

Regency Real Estate, 2nd Floor, 105 Piccadilly, London W1J 7NJ 

CBRE, Henrietta House, Henrietta Place, London W1G 0NB 

## **Auditor** 

Buzzacott LLP, 130 Wood Street, London EC2V 6DL 

**52** UCLH CHARITY ANNUAL REPORT & ACCOUNTS 2022–23 



_Dr Mike Yeung, consultant in medicine for the elderly, UCLH_ Photographer: Adam Scott, 2022