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2021-03-31-accounts

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One of the highlights of the year was receiving
the keys of the Pears Building, the new home for
the UCL Institute of Immunity and Transplantation,
made possible by visionary philanthropists,
particularly the Pears Foundation.
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REPORT OF THE TRUSTEES

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Our COVID support for our hospitals: a display of thanks from the public and a place for tired staff to rest at the Royal Free Hospital; a speaking bear to help bonding for babies at the Starlight neonatal unit at Barnet Hospital; and food and other essentials for hospital staff.

The Royal Free Charity was formed in 2000 and supports the patients and staff at the Royal Free London NHS Foundation Trust (RFL) which comprises Barnet, Chase Farm and the Royal Free hospitals as well as numerous satellite sites across north London and Hertfordshire.

being the linchpin of support for the RFL with its world-class healthcare, clinical research and teaching. We work closely with the leadership of the RFL to develop and support projects beyond the limitations of NHS funding. See more on p8-9.

and neuroendocrine tumours. It also has a high-level isolation unit for the treatment of highly infectious diseases such as Ebola.

Nearly 200 years ago, a young surgeon, William Marsden, discovered a girl seriously ill on the steps of a church in Holborn. He tried in vain to get her into a hospital and she died. Deeply affected, he gathered around him a group of philanthropists and established what would become the Royal Free Hospital.

With its 10,000 staff, the RFL serves a population of more than 1.6 million people, many of whom come from across the country and beyond to seek out its world-class services in liver and kidney disease and transplantation, breast surgery, plastic surgery, myeloma

The charity continues to espouse that same philanthropic spirit,

OUR TRUSTEES

SENIOR MANAGEMENT

Chris Burghes, chief executive (until May 2020) Jon Spiers, chief executive and company secretary (from September 2020)

Judy Dewinter, chair Akta Raja, vice-chair Russell Brooks Caroline Clarke Nicola Grinstead Russell Gilbert (until 23 March 2021) Michael Luck Katie Morrison Nina Robinson (from 23 March 2021) Melanie Sherwood Chris Streather Alistair Summers (from 23 March 2021)

Richard Scarth, deputy chief executive

(and acting chief executive from April 2020 to September 2020) Barry Aspland, director of finance

Sharron Grant, director of people (from May 2020) Alison Kira, director of grants and services

Robin Meltzer, director of engagement and communications (from July 2020)

Michael Ridgwell, chief operating officer (from July 2020) Paul Stein, executive director of income generation Jenny Todd, assistant director of services (from January 2021)

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During a tumultuous year, nothing has emerged more clearly than the extent of support that our three hospitals - Barnet Hospital, Chase Farm Hospital and the Royal Free Hospital - have received from their local communities.

relationships which would be crucial in helping us deliver our ambitious plans.

the help of volunteers and charity colleagues, providing essentials to frontline workers at the beginning or the end of their long shifts as they could not get to the shops. We created or refurbished rest areas where hospital staff could sleep, eat and call their loved ones. And we put in place psychological support to help them deal with the inevitable aftermath of what they were coping with.

The first two phases of the pandemic saw our donors and fundraisers help us raise an amazing £2.2 million which we swiftly put into action to support our hard-pressed hospital colleagues. We set up a free supermarket for staff, ‘Free@theFree’, organised and run by our Rec Club staff with

From the moment the first lockdown was announced, offers of help and donations started to arrive and as the financial year ended, we had made new

Although we were used to working closely with trust staff, the urgency and scale of need created by the pandemic drew us even closer together, creating unprecedented opportunities to understand exactly what was needed and how we could channel help from the hospitals’ communities to meet that need. We’ve lost no time in applying those lessons to our plans.

While the pandemic dominated our activities – as you’ll see in the report – we still made time to review how we operate and what our priorities should be over the next few years while our hospitals recover, reset and move forward.

“ A KEY TOOL WILL BE OUR NEW BRAND WHICH WILL ENSURE THAT THE WAY WE PRESENT AND TALK ABOUT OURSELVES BETTER REFLECTS AND ARTICULATES OUR AMBITIONS.”

Our new strategic framework includes a new vision and mission for the next three to five years ensuring that every successful application for our donors’ precious funds has answered tough questions about how it will support patients, hospital staff or locally-delivered research. It will also see us adopting a much more proactive and engaging approach to fundraising which we are confident will lead to significant increases in both our supporter base and our voluntary income. A key tool will be our new brand which will ensure that the way we present and talk about ourselves better reflects and articulates our ambitions.

from afar or were participating in launched electronic and printed a clinical trial - started to benefit newsletters to share the amazing from stylish accommodation at stories of what goes on within our the top of the building. hospitals and laboratories.

The innovative partnership

It’s essential to us that we demonstrate to you, our supporters and the communities served by our hospitals, the difference your generosity makes to our part of the NHS.

behind this £60m building – demonstrate to you, our UCL, the Royal Free London supporters and the communities NHS Foundation Trust and the served by our hospitals, the Royal Free Charity, as well as difference your generosity generous donors, particularly the makes to our part of the NHS. Pears Foundation – are working together to bring new hope On behalf of our board, for patients through cutting we would like to thank our edge immunology research in committed supporters, staff, conditions like cancer, HIV, severe volunteers, hospital colleagues immune disorders and of course and partners for being on the COVID-19. We’ve all seen the journey with us. We look forward critical importance of immune with confidence as we work research in the past year and together over the coming year. we’re hugely excited to see what lifesaving breakthroughs our Judy Dewinter incredible institute can achieve Chair of Trustees in its new home.

Jon Spiers Chief Executive

We’re keenly aware of our

responsibility to ensure that our donors’ funds are used as wisely as possible and how important it is that we report back on the impact of your gifts. This report is one way that we do that. This year we’ve also begun ‘RFC Presents’, a very successful series of talks by high-profile speakers, and

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The role of NHS charities can often be unclear. After all, the NHS is funded by the taxpayer so why do hospitals need charities too? The short answer is that NHS charities fund vital projects which go beyond the limits of government funding. But what does that mean in practice? Here we explain how the Royal Free Charity plays a crucial role at Barnet, Chase Farm and the Royal Free hospitals and beyond.

Like all NHS charities, we exist to support our hospitals and other sites, their patients and the staff who care for them. We fund and directly deliver a vast range of projects helping to improve all patients’ outcomes and experiences across our hospitals. This is summed up in our strapline – Further, Faster, For All.

We can move very fast – as we’ve done since the start of the pandemic, quickly identifying the urgent needs of staff for food, places to rest and psychological support. Our volunteers even helped make 50,000 surgical gowns to supplement PPE stocks.

And we take time to understand the longer-term needs such as improving hospital wards, more or better staff training, or bringing in the latest diagnostic equipment.

We provide services ourselves, alongside our clinical colleagues – whether that’s benefits advice for patients with longterm conditions, massage therapy for cancer patients and staff, affordable keyworker accommodation or wellbeing support for hospital staff.

Increasingly, we’re making longterm strategic investments to help our patients here and others around the world. The Pears Building, the new home we’ve created for the UCL Institute of Immunity and Transplantation, is a shining example of what the generosity of our donors can do for future generations.

And we know that one of the most important roles we play as an NHS charity is acting as the link between our community and our hospitals. Through us, whether you give time, money or other gifts, you can show what

our amazing NHS means to you and help make sure your family, friends and neighbours have a great experience whenever they might need their local hospital.

Whether it’s a care package for a patient unexpectedly in hospital overnight, or a multimillion pound research institute about to uncover the secrets of the immune system, it’s all thanks to our incredible donors and fundraisers. Thank you.

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“ Thanks so much again for your help in this stressful time. I really appreciate it.” (Foundation year one doctor redeployed to Barnet Hospital ICU)

Although valued by the NHS, it needs time to allocate resources to such services. The generosity of our communities allowed us to respond more quickly.

As the number of patients in our intensive care units (ICUs) during the first wave rose, so did the response from the communities around our hospitals. During the year we raised £2.2 million in response to our COVID emergency appeal as well as millions of donated items of food and essentials for staff - and enough hours of people’s time to make 50,000 protective surgical gowns for ICU staff.

Recreation Club into a

“Free@theFree” supermarket providing care packages and other immediate support to staff.

We then turned to four long-term areas: psychological support, programmes to champion workforce health and wellbeing, accommodation for frontline workers and essential food.

Staff health and wellbeing Staff also cited physical issues including back, muscle and joint problems. As well as massages from our complementary therapy team, we provided £253,400 to support wellbeing initiatives and social activities, designed by staff for staff, and co-ordinated by a dedicated lead.

Psychological support

Our 10,000 staff had never faced these very high numbers of patients needing intensive care and the loss of so many lives, as well as such thinly-stretched resources. Months of working in these conditions placed staff under huge strain. The generosity of our communities was a huge support, funding:

None of us predicted how much the health and wellbeing needs of our hospital colleagues would change. While the hospital was focusing on treating COVID-19 patients, our role was to work closely with the hospital leadership to find the best way to support frontline staff.

These programmes targeted high-risk groups, including:

The charity’s strong partnership with the trust put us in a unique position on the inside and ‘in the room’ for key discussions. We ensured that these precious funds and offers of help were allocated to maximum effect. First, we transformed our

REST

The resilience and emotional support for teams (REST) programme has been a linchpin of support for hospital colleagues throughout the crisis. It offers face-

to-face emotional help to frontline teams, including the A&E and intensive care departments, which were hardest hit by the pandemic.

During the year, the programme:

For most of the year the services were provided by redeployed mental health professionals in our trust. Thanks to the support of our donors and fundraisers, we have been able to recruit two additional mental health professionals and administrative help to maintain these services.

As the pandemic progressed, our focus shifted towards building resilience and capacity to face the challenges of tomorrow. Next year our plans will be informed by the assessment of an independent evaluator.

Staff accommodation

The number of requests for staff accommodation - for staff working extra shifts, those isolating or protecting a vulnerable family member - continually increased during the year and we spent £200,000 funding extra provision.

Donations and fundraising provided accommodation for nearly 4,000 nights of accommodation. Swift processing of applications eased the worry for stressed staff.

As we move into the next phase of our response, we are keen to share the lessons we have learned, alongside our achievements.

The past year has:

• reaffirmed the importance Essential food of working in partnership with Hospital staff worked long and the trust to identify the areas demanding shifts, spending hours where donor investment can on their feet. attending to patient add greatest value, and to needs. When our A&E and intensive respond quickly care departments were constantly • highlighted the benefit of at maximum capacity, many co-creating services with struggled to find time for a meal or affected staff to meet genuine drink, ending their shifts physically needs as effectively as possible and emotionally exhausted. • underscored the importance

Funds raised enabled us to provide a meal-delivery service, ensuring uncertainty and crisis hot meals, packed lunches and refreshments made their way to These insights will inform our plans, staff on the COVID wards, fuelling helping us harness your support them to continue their life-saving to power our hospitals, their staff work, as well as to colleagues on and their patients, through the other wards and in A&E. pandemic and beyond.

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“

It’s really important to connect patients to those they care for, particularly while visiting isn’t allowed. It boosts their morale and provides them with reassurance and additional human contact.

“But it can put pressure on ward staff to fit in what can be a time-consuming task. Having charity volunteers setting up the calls takes the pressure off the clinical staff because they know that someone is doing what matters to patients.”

(Steve Evans, head of patient experience and interpreting at the trust)

As well as grants for our hospital colleagues to spend as their patients need, the charity provides direct services: an army of energetic and thoughtful volunteers, a team of massage therapists and our support hub for patients with long-term conditions who need help with the benefits system, housing and other issues.

Our volunteers

Usually our volunteers can be found in many locations around our three hospitals: greeting and signposting patients as they arrive; helping patients on the

wards or chemotherapy suite;

assisting pain management therapists; guiding patients and visitors around our hospitals; and in many other areas.

The pandemic closed many doors to them but they proved once again how adaptable they are, moving into new roles in:

working alongside community midwives and in a day nursery for the children of hospital staff

As the year progressed, volunteers were invited back to the wards in limited numbers, but first there were thorough briefings from the infection control team, risk assessments and refresher training.

New roles were established facilitating virtual visiting between COVID patients and their loved ones; meeting and greeting patients; supporting cancer patients in

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Our support hub

Support hub successes

“ ONCE THE PANDEMIC STARTED, THE HUB CLOSED ITS DOORS AND ADAPTED ITS SERVICE TO THE NEW SITUATION.”

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Evelyn Blumenthal, a check-in-and-chat volunteer.
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administrative roles within the Macmillan service; and being companions to people living with dementia.

Again, our community rallied to the challenge and expressed “ huge interest in joining our volunteer team. At the gown factory alone, more than 600 volunteers contributed more than 32,000 hours.

Before, it was just me going through it all – not knowing how to do things or say things. It’s such a pressure eased, having someone to help me along the way, helping me explain myself.”

Volunteering in figures

(Hub user at the Royal Free Hospital)

The support hub in the Royal Free Hospital is a calm, safe place where patients with long-term conditions can get expert advice, have a chat with a volunteer or just have a cup of tea.

Other successes

It offers services to patients and their carers, including:

Once the pandemic started, the hub closed its doors and adapted its service to the new situation. A new “check-in-and-chat” service was immediately set up, pairing volunteers with patients who might be vulnerable. The welfare rights advice service moved and remained as a phone service for the rest of the year. Support groups moved online.

patients paired with a volunteer for the check-in-and-chat service

welfare rights cases taken on

people were rehoused or found alternative accommodation

people were prevented from becoming homeless

people were helped with other housing-related problems

amputee peer support meetings were held online

Nearly £550,000 in state benefits was awarded to patients we helped with expert support through benefit applications and appeals, usually because they were no longer able to work owing to sickness or disability.

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“ You are all brilliant, as is the service, and the massages - out of all the benefits provided to staff - has been the single most valuable thing to me.”

Hospital nurse

offering more than 2,000 massages. These were greatly appreciated by staff coping with the stress of a huge workload.

ran for eight weeks during the first wave of the pandemic, supplying food and other essentials to staff so they wouldn’t have to join a supermarket queue after a long shift. This took in and distributed goods donated by the community estimated to be worth £272,000 and we calculate that there were nearly 53,000 visits to the shop by hospital staff.

The tremendous support the community has shown the charity is, of course, because they want to show their appreciation for the NHS heroes at our three hospitals: the Royal Free, Barnet and Chase Farm.

As the year progressed, the priority was to get the team back to full strength and to resume a full service for staff as well as patients. Next year the plan is to extend the range of services and to create dedicated bases for the therapists at our three hospitals.

Well-supported staff are better able to care for patients and again our volunteering team are key to this support, as are staff at our Recreation Club, our massage team and the support hub.

Supporting patients, helping staff

Places our volunteers supported hospital staff:

Hands-on support

• a pop-up protective clothing factory in the Old Town Hall Hampstead which made 50,000 theatre gowns for hospital staff

At the Royal Free Hospital, referrals to the support hub (see p 15) came from many areas including the Ian

Although the complementary team was furloughed for much of the year, the team was able to establish a way of operating safely and start seeing hospital staff in July, between then and November

Charleson Day Centre and the pain management, renal and cardiology services.

theatre gowns for hospital staff

food shop visits by hospital staff

“

THE PRIORITY WAS TO GET THE TEAM BACK TO FULL STRENGTH AND TO RESUME A FULL SERVICE.”

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Home from home

Junior doctor Raoudha Ben Othman has described how new accommodation created by the Royal Free Charity made her feel supported while working in Barnet Hospital’s A&E.

kitchen and laundry facilities. “It was very important to me to have my own space and bathroom,” said Dr Ben Othman. “Bills are included in the rent, a cleaner comes into the communal areas every day, the trash is emptied. These things take a huge load off you.”

Away from her family in Tunisia, she felt daunted in her hunt for accommodation until she heard about Graseby House, a former student accommodation block near the hospital, which the charity has transformed into accommodation for 63 clinical staff and offices for 100 administration staff.

Each resident has their own room and bathroom and shares

Marsden Lecture 2020

We were delighted to welcome the man leading Google’s hunt for digital solutions to some of the world’s toughest health problems when he gave the Marsden Lecture.

Dr David Feinberg, leader of Google Health, talked about the role of health technology and innovations in delivering better care on to audiences on Zoom and YouTube.

The annual event is named after William Marsden who founded the Royal Free Hospital in 1828 after finding a girl dying on the steps of a Holborn church and being unable to get hospital care for her.

Matt Smith, our musician

Matt has been back on the wards at the Royal Free and Barnet hospitals three times a week, energising and entertaining patients and staff.

Some of the feedback includes a comment from a doctor who said:

“That’s the first time that patient Mistral, one has smiled in two weeks” and from a patient: “That’s the best of our pet thing that’s happened to therapy dogs me since I got here.”

Mistral is one of our pet therapy dogs, who are back in action, cheering the staff of the hospitals.

For Matt, the highlights include dogs, who are back in action, playing for a child receiving cheering the staff of the hospitals. chemotherapy and performing for a blind toddler who started The nine-year-old dog is owned smiling when he played. “I’ve by Mary Cooper who said: played happy birthday for a “She loves being the centre of 103-year-old, put in a regular attention, but she instinctively appearance at paediatrics knows that she needs to tone and have often played for one down her bounciness when she’s of our Royal Free volunteers visiting.” She’s a great morale during her time as an in-patient. boost for the staff. “I think they Her extraordinary spirit is an really need her right now,” inspiration!” he said. said Mary.

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We completed our exciting new home for the scientists at the UCL Institute of Immunity and Transplantation (IIT) – one of the largest patient-focused immunology centres in Europe - despite many practical challenges posed by the pandemic.

treatments and cures for some of the most devastating diseases of the immune system.

The Pears Building has a lightfilled interior with dramatic acoustic panelling and bespoke timber meeting room “pods”. These and other spaces in the building will maximise the opportunities for interaction between users of the building, including researchers and their clinical colleagues in the neighbouring Royal Free Hospital, and with the surrounding community.

Created after a ground-breaking collaboration between the Royal Free Charity, UCL and the Royal Free London NHS Foundation Trust, the building will not only bring the theory and implementation of research much closer together but will also allow the public easy access to the latest discoveries in immunology.

The £60 million Pears Building is an ultra-modern research facility which will allow researchers and clinicians to work more closely with patients to develop

“

In the Pears Building we have a world class laboratory research facility and a beautiful space designed to facilitate a unique partnership between scientist and clinician,” said Professor Hans Stauss, director of the IIT. “This will enable us to convert discoveries made in the laboratory into cures and treatments more quickly.”

Jon Spiers, chief executive of the charity, said: “This important new facility was made possible by the generosity of a number of visionary philanthropists, including the Pears Foundation, who have supported the project from the outset.”

The building will house up to 200 researchers looking for cures and new treatments for global health problems including type 1 diabetes, cancer and organ rejection after transplantation, in the most up-to-date laboratories.

to COVID-19, we awarded one of our largest grants to RFL researchers - for £250,000 – for 12 projects in clinical and laboratory research as well as staff and patient experience. Three are highlighted below.

using it could change the care of these patients.

Michelle Anderson, senior

research midwife, and Rezan Abdul-Kadir, consultant obstetrician, are investigating the psychological and pathological impact of COVID-19 on pregnancy and birth and hope to improve the care of mothers and babies who develop the disease.

Local people will be welcomed into a community café and invited to face-to-face updates with researchers, who will maximise opportunities for patients to take part in clinical trials. Those taking part in research will be offered accommodation on the top floors of the building, many with stunning views across Hampstead Heath.

During the early days of the pandemic many patients in intensive care units were put in a prone position to aid their breathing and it is now estimated that up to 1% will go on to suffer visual loss after “proning”.

The need to monitor the

psychological effects on patients admitted with COVID-19 is the subject of a study by Joanna Dobbin, academic clinical fellow in primary care and population health, who is leading a study using the NHS-approved Feel Good app for the treatment of anxiety and depression. It is anticipated this study will lead to a reduction in patients’ anxiety and have a positive benefit on patients’ wellbeing.

Anne Marie Preston,

ophthalmology research portfolio

manager and colleagues will identify risk factors and the potential for preventing this side effect, perhaps by changing the position of the head. Working in partnership with Fosters Architects, they have developed a proning board with pressure sensors to monitor pressure within the eye and the results of

The building also has offices for the Royal Free Charity and a 71-space car park for patients and visitors.

Charity-funded research into COVID-19 As part of the charity’s response

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Gary Colet cycled over 50 miles for Barnet Hospital ICU who saved his life
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We can support patients, hospital staff and important research only because of the generosity of our donors and community fundraisers. Overall we raised £6.4 million, including a staggering £2.2 million in response to our COVID emergency appeal. Elsewhere in the report we have described how we quickly pressed this

into service where it was most urgently needed.

2,500 more donors

A restructuring of our fundraising team and some significant new appointments meant we were able to recruit about 2,500 new donors during the year. We were very sad when a cost efficiency review

led to the closure of our retail operation but we made good progress in creating distinct new functions within the fundraising team focusing on high value fundraising, individual giving and community fundraising.

The pandemic meant that many of our regular sources of income were not available, the

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“ AS WE MOVE INTO THE NEXT PHASE OF OUR RESPONSE, WE ARE KEEN TO SHARE THE LESSONS WE HAVE LEARNED, ALONGSIDE OUR ACHIEVEMENTS.”

services rather than being restricted to specific projects and causes – so-called “unrestricted funds”

most obvious being events and volunteer collections.

Untapped potential

Looking ahead, we are confident that there is much untapped funding but we will need to focus on some key objectives to fulfil our fundraising potential. These include:

Of course, supporting our hospital colleagues with the challenges posed by the pandemic will continue to be a priority. As the year ended, we were finalising plans for an appeal for funds to help restore and improve future services.

As we move into the next phase of our response, we are keen to share the lessons we have learned, alongside our achievements. The past year has:

We are grateful for the huge

generosity shown by our donors and supporters and will ensure that the results of our new appeal continue to make a big difference to our hospital colleagues.

FUNDRAISING POLICY

Our approach to fundraising rests on positive supporter engagement in order to enable us to attract, steward and maintain support, while respecting the wishes of our supporters. To help us achieve this, we store and manage supporter information using Raiser’s Edge, a Blackbaud fundraising database.

The charity is registered with the Fundraising Regulator, contributes to its levy on fundraising charities, adheres to its code of practice and to Charity Commission guidelines. Trustees provide guidance and oversee our fundraising practices. They are aware of the Charity Commission’s fundraising principles: 1. Planning effectively

  1. Supervising our fundraisers

  2. Protecting our charity’s reputation, money and other assets

  3. Ensuring compliance with the laws, regulations and recognised standards that apply to our fundraising

  4. Being open and accountable.

During the course of the year, no professional fundraisers or commercial participators carried out any fundraising activities on behalf of the charity. Similarly, no cold call, telephone or street fundraising has been carried out. As a matter of policy, no inducements are made to staff or volunteers and we do not sell or exchange lists of data with any other charities or companies for marketing or fundraising purposes.

We regularly review our procedures to ensure that we provide our supporters with a good experience when they work with and support us.

Any failure to comply with fundraising standards will be reported to the Fundraising Regulator, for which there is guidance for the public on our website and we have an internal process to follow. There have been no complaints or any recorded failure to comply with fundraising standards in the past financial year. We are compliant with General Data Protection Regulation. We gain consent from our supporters when required and inform them of their rights and how we look after their personal data.

Our privacy policy covers how we use the data provided by our supporters and it describes the ways in which supporters can opt out from communications and how they can make a complaint. We provide website links to our privacy policy and to our subject access request policy.

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DONATIONS -
DONATIONS - CAPITAL
OTHER 5,996
APPEALS 22
FINANCIAL
INVESTMENTS 385
LEGACIES 366
TRADING 280
PROPERTY
INVESTMENTS 932
EVENTS 169
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Income for the year totalled £8.5 million. This is split between donations, legacies, financial and property investments, trading and event activities.

BREAKDOWN OF

TOTAL INCOME (£000) £8.5m total income 10.5% decrease on 2019/20

OTHER 328

DONATIONS: CAPITAL APPEAL

such as the London Marathon charitable activities within the and the Vitality London Half department concerned. Marathon to raise money for the charity. PROPERTY INVESTMENTS

Funds generated through gifts and grants specifically for the construction of our major new research facility – the Pears Building.

This predominately relates to the net disposal proceeds on investment properties when they have been sold and the rental income generated from properties held for investment purposes.

FINANCIAL INVESTMENTS

Investment income generated from quoted investments and cash holdings.

DONATIONS: OTHER

Voluntary gifts and donations received either directly by the charity or through medical departments in the Trust from individuals, corporations, charities and charitable trusts and foundations.

LEGACIES

Gifts that donors have left to the charity in their Wills.

TRADING

Income from our retail operations (charity shops) and our subsidiary, RFC Recreation Club Ltd, which operates under the brand of the “Rec Club” and provides leisure facilities to hospital staff and members of the local community.

OTHER

Income generated from, amongst other things, training courses run by various departments in the Royal Free to further the

EVENTS

Many supporters of the charity participate in, or organise, events

Total expenditure for the year was £14.5 million. Expenditure is split across the four key objectives: patient welfare and facilities, staff training and development, research, medical equipment as well as fundraising, trading and investment management.

BREAKDOWN OF TOTAL EXPENDITURE (£000) £14.5m total expenditure 83.5% increase on 2019/20

FUNDRAISING

The cost of generating our fundraising income by way of staff, event and other related costs.

INVESTMENT MANAGEMENT

These are professional fees in relation to the charity’s financial and property investments.

MEDICAL EQUIPMENT

There was no expenditure on medical equipment in 2020/21.

PATIENT WELFARE AND FACILITIES

This expenditure relates to grants to improve patient welfare and facilities and the costs of volunteer services, our

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HOSPITAL STAFF
TRAINING AND
FUNDRAISING 948 DEVELOPMENT 2,622
TRADING 1,025
INVESTMENT
MANAGEMENT
651
PATIENT WELFARE
AND FACILITIES 3,228 RESEARCH 6,079
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staff to attend training courses or to provide additional facilities for staff, including ‘Fit at the Free’ – a programme aimed at enhancing staff wellbeing.

support hub service and our massage team, all of whom provide services which are much appreciated by patients at our three hospitals.

TRADING

RESEARCH

These are the costs of the charity’s retail trading operations, which were wound up during the year, and the operating costs of the Recreation Club, which provides fitness and wellbeing services.

These grants support life-saving and life-changing medical research at our hospitals including the salaries of researchers, research equipment and associated research costs.

STAFF TRAINING AND

DEVELOPMENT

Many donations are given to benefit NHS trust staff, and these are often used either to enable

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FINANCIAL COMMENTARY

A primary focus of the charity in 2020/21 continued to be construction of the charity’s flagship building project, the Pears Building, which began in March 2018. The £60m project, a partnership between UCL, the charity and the Royal Free London NHS Foundation Trust, was managed through RFC Developments Limited, a subsidiary company of the charity. The development programme, originally planned for completion in September 2020, achieved completion in June 2021 and now houses the prestigious UCL Institute of Immunity and Transplantation (IIT), patient accommodation and a café to be run by the charity via an outsourcing arrangement, a car park run by the trust and the charity’s main office. During 2020/21, the charity spent £11m on the construction costs of the project, of which £9m was in excess of the donation received in the year from the Pears Foundation.

Income from investments of £1.3m (2019/20: £1.7m) reflects a reduction in dividend income from the charity’s financial investment portfolio, which was switched from a higher risk equity investment to a lower risk bond investment to mitigate risk in the equity market due to COVID-19.

There was a £7.1m gain on investments in the year (2019/20: £3.2m loss), represented by a £2m realised and unrealised gain on financial investments following an improvement in the financial markets, £1.6m gain on disposal of an investment property and £3.5m gain on valuation of a mixed motive investment property.

The charity holds Graseby House as a mixed investment property, with an office space rental income stream and keyworker short-lease accommodation. A major refurbishment of the property took place in 2019/20 and the property came into operation in February 2020, with a cost value of £10.2m. However, due to the pandemic, the building was not operational for a full annual cycle and there were periods when it was not possible to let it as residential accommodation. At the turn of financial year 2021/22, and lifting of COVID-19 related restrictions, the property became available for operating at capacity. A Red Book valuation exercise was carried out using a discounted cash flow based upon the income stream receivable from the property using PodPlan, which is a sector specific valuation toolkit, using a 5% voids level. The property was valued at £13.8m as at 31 March 2021, based upon a

The total annual income of the group was £8.5m (2019/20: £9.5m), while the operating income excluding investment income was £7.2m (2019/20: £7.8m). A successful COVID-19 fundraising appeal during the year which raised £2.2m and a one-off government grant of £0.3m are included in the total income from donations and legacies of £6.4m (2019/20: £6.4m). However, the charity returned a lower income on its trading activities of £0.6m (2019-20:£0.9m), as a result of the permanent closure of charity shops and some temporary closures of the Recreation Club due to government lockdown measures.

fully explicit discounted cash flow model over a 45-year period. This valuation generated an unrealised gain of £3.5m in the year.

During the year, the charity disposed of the remaining part of its investment in the Gray’s Inn Road site of the Royal National Throat Nose and Ear Hospital (RNTNEH) generating a gain on disposal of £1.6m. The disposal was made to support funding for the Pears Building project as well as to improve the charity’s free reserves position. Following disposal of the RNTNEH, a grant to the trust of £0.7m has been accrued and will be paid in the following year for use in patient welfare and facilities.

Expenditure on charitable activities for the year was £11.9m (2019/20: £6.3m). A key reason for the increase was a grant of £3.9m (33% of total charitable expenditure) provided to UCL to fund the purchase of basic and specialised research equipment to be used at the IIIT within the Pears Building. There was also a one-off grant to the trust of £0.7m following disposal of an investment property discussed above. The income generated from the successful COVID-19 appeal helped the charity to award further grants to the trust, particularly £0.3m and £0.9m grants for COVID-19 research and staff health and wellbeing support respectively.

The charity continued to award grants and provide its own services for patient welfare and support as well as investing in medical research, staff training and medical equipment. More details of projects undertaken in support of our

FINANCIAL COMMENTARY (CONT.)

RESERVES

The charity’s reserves are to provide funding for financial commitments and a contingency against unforeseen circumstances. The trustees review the reserves levels regularly to ensure the charity has adequate funds.

objectives are included in earlier sections of the annual report.

2020/21 was an enormously levels regularly to ensure the challenging year for the charity’s charity has adequate funds. subsidiary, RFC Recreation Club Ltd. Along with the rest of the The charity holds three main country, the club faced huge categories of reserves: disruption and uncertainty due • Restricted funds primarily to lockdowns and numerous derived from other charities that changes to the country’s tier have merged with the charity system. The club was open, on and therefore their funds must and off, with limited gym facilities be utilised for the charitable only for around four months objects of the merged charity. during the year. Despite these In addition, the charity’s capital challenges, and supported by the appeal is restricted because charity and the trust, the team of its nature and materiality. at the club reinvented its offer, Restricted funds at the year-end becoming a vital support to the were £38.1m - see note 11.3. trust and our local community • Unrestricted, designated during the first two waves of the funds are donations or legacies pandemic. That included but was which have been received by not limited to: 1) offering its sports the charity with an expression hall to be used as a base for the of wish from the donor, but “Free at the Free” shop where trust no binding restriction, to staff could collect free grocery benefit specific activities items donated to the charity of a department of Barnet, or purchased using charitable Chase Farm and the Royal funds 2) offering studio space Free hospitals. Unrestricted, to the charity’s complementary designated funds at the yeartherapy services team to give end were £17.9m - see note 11.1. free massages to staff and 3) in • Unrestricted, general funds are collaboration with the local GP generated when no stipulation network, North Central London is made by the donor. However, CCG and the Royal Free and these funds must be expended UCLH trusts, the club became in line with the charity’s objects, one of the bases for the national which is the legal responsibility vaccine rollout programme. This of the trustees. Unrestricted, brought in regular income to general funds at the year-end offset the club’s costs and loss were £37.2m - see note 11.1. of income from December 2020 to March 2021. Understandably, The calculation of free reserves with a very limited income stream is a combination of the general due to various closures, the club funds adjusted for fixed assets, had a very difficult financial year investment properties and future which resulted in a negligible commitments for capital projects, deficit of £58k (2019/20: £6k deficit). and compared against the

minimum reserves requirement as per the policy. Free reserves provide funds that can be drawn upon and applied at the discretion of the charity to maintain its operations. A target level and minimum level of unrestricted free reserves have been established in a reserves policy, to ensure the charity has adequate funds to operate, taking account of any unforeseen circumstances.

The free reserves at the year-end were a negative £4m (2019/20: negative £5.1m [restated]) - see note 11.2. This improvement was primarily due to the disposal of an investment property valued at £1.3m on the balance sheet. This position of negative free reserves is considered to be temporary due to a combination of future predicted growth in unrestricted voluntary income and careful management of restricted and designated funds. The charity’s finances will also benefit from unrestricted income derived from its investment holdings in the medium term. Under the new strategy, the charity will be putting in a concerted effort to build up its free reserves. This will enable the charity to return to a position of positive free reserves in the medium term in line with the charity’s reserves policy. The trustees have considered a target level of reserves would be six months of net operating costs and a minimum level of reserves would be four months of net operating costs. Based on 2020/21 net operating costs of £4.6m, these equate to £2.3m and £1.5m respectively (see note 4). The charity has outlined its plan stated above to conform to this policy.

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PUBLIC BENEFIT

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

RISKS AND RISK

MANAGEMENT

The trustees of the Royal Free Charity recognise their duty to minimise the risks to which the charity’s activities could be exposed. They acknowledge that risk is inherent in all activities and that its management is crucial to managing the charity’s objects.

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RISK STEPS TAKEN TO MITIGATE RISK
(Risk Log Ref.) Risk Definition
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RISK
(Risk Log Ref.) Risk Defnition		 RISK
(Risk Log Ref.) Risk Defnition		 STEPS TAKEN TO MITIGATE RISK
F4 Reducing unrestricted
free reserves leading
to increase in the
unrestricted free
reserves defcit.		 • Taken legal and professional advice in relation to
commercial arrangements and contracts.
• Ensure board of trustees and its sub-committees
are regularly updated on fnancial performance.
• 2021-22 budget reworked and 2021-25 plan
developed with focus on generating unrestricted
funds.
• Review fundraising policy and recovery of
overheads.
O2 Fundraising function
fails to meet its fnancial
targets and deliver
satisfactory returns.		 • Focused fundraising strategy and diversifed
income portfolio.
• Development of impactful case for support.
• Recruitment and retention of high-quality team.
• Development and monitoring of fundraising KPIs.
O8 Post practical
completion operational
issues in the Pears
Building.		 • Regular meetings with contractors and advisers
to resolve and monitor defects.
• Regular contact with management team of the
contractor(s).
• Working with experts to negotiate with the key
stakeholders of the Pears Building to minimise
charity exposure and to manage the service
charges equitably.
• Monthly mobilisation meetings and reports from
the property management contractor.
G6 Insufcient focus on
equality, diversity and
inclusion (EDI) at trustee
level or within the
charity.		 • Trustee skills and diversity audit carried out in
Dec 20/Jan 21.
• Responsibility for overseeing board EDI held by
nominations and governance committee.
• Developing EDI policy and staf training on EDI.
• Network with other NHS charities re their EDI
initiatives.

RISKS AND RISK MANAGEMENT (CONT.)

RISK
(Risk Log Ref.) Risk Defnition		 RISK
(Risk Log Ref.) Risk Defnition		 STEPS TAKEN TO MITIGATE RISK
E1 COVID-19 and its
adverse impact		 • Government guidance followed to risk assess workplace and staf as a part of return to
ofce work.
• Finance and customer relationship management systems are on secure, cloud-based
platforms, including SharePoint, Microsoft 365 and videoconferencing technology, to
enable remote working.
• Service delivery adapted to work from home as needed.
• Contact maintained with key trust colleagues.
• Ofce prepared as ‘COVID-secure’ following trust guidance.
• Weekly review by senior leadership team.
E2,
E3		 Adverse publicity &
Reputational damage		 • Rolling programme of communications across all channels.
• Evidence reported back to the wider public of the positive impact the charity is having.
• Proactive management of press and engagement with local opinion-formers, including
targeted communications with those impacted and the media.
• Regular meetings between trust and charity communications teams.
• Complaints procedures updated.
R1 Data protection (DP)
compliance breach		 • Review, development and implementation of a full suite of DP policies and procedures
completed.
• DP expert provider appointed.
• Mandatory DP training rolled out and completed by all staf. New staf to complete within
six weeks of starting.
• Annual review of DP policies and procedures and refresher training for all staf.
R2 Health & safety (H&S)
regulatory non-
compliance		 • Senior leadership team and departmental H&S leads identifed and trained.
• H&S review of Pears Building and Recreation Club facilities completed.
• Update and further develop H&S policies, processes and reporting.
• Provide mandatory training for staf.
• Develop and implement a crisis management plan.
R3 Safeguarding • Senior leadership team lead for safeguarding identifed
• Mandatory training completed by all staf and by new staf within six weeks of starting.
Annual refresher training for all staf.
• Volunteers in regulated activity are disclosure and barring service (DBS) checked and
vetted. All volunteers complete basic safeguarding training at point of induction and
refreshed along with DBS every three years.
• Update and develop policies, processes and reporting in respect to safeguarding.

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STATEMENT OF TRUSTEES’ RESPONSIBILITIES

STRUCTURE, STRUCTURE, GOVERNANCE AND GOVERNANCE AND MANAGEMENT MANAGEMENT (CONT.)

The trustees (who are also directors of the Royal Free Charity for the purposes of company law) are responsible for preparing the trustees’ report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”.

to presume that the charity will continue in business

LEGAL STRUCTURE

The trustees are responsible for On 1 April 2016, the Royal Free keeping adequate accounting Charity reconstituted as an records that disclose with independent charity (no. 1165672), reasonable accuracy at any solely regulated by the Charity time the financial position of Commission and no longer the charity and enable them also subject to NHS legislation. to ensure that the financial This status establishes the statements comply with the charity’s independence from the Companies Act 2006. They are also Department of Health and by responsible for safeguarding the virtue of becoming a company assets of the charity and hence limited by guarantee (no 09987907), for taking reasonable steps for limits the trustees’ liability. The the prevention and detection of charity operates under a Charity fraud and other irregularities. Commission scheme dated 1 April Insofar as the trustees are aware: 2016 and its objects, as stated in its articles of association, (a) there is no relevant audit encompass not only the support information of which the of patients of the Royal Free company’s auditor is London NHS Foundation Trust unaware: and (RFL), but also and more generally (b) the trustees have taken all the the promotion of health and steps that they ought to have medical research, particularly taken to make themselves within the catchment area of the aware of any relevant audit foundation trust. information and to establish that the auditor is aware of TRUSTEES that information. Following the reconstitution of

responsibilities, aspects of charity law pertinent to the Royal Free Charity and timely copies of reports, accounts and other key documents. Board members declare all relevant interests in other bodies, especially bodies closely connected with the RFL.

The trustees and their five subcommittees – finance, asset management, fundraising, marketing and communications, grants and nominations and governance committees - meet quarterly.

Company law requires the trustees to prepare financial statements for each financial period that give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charity for that period. In preparing those financial statements, the trustees are required to:

POWERS OF INVESTMENT

The charity’s powers of investment are principally derived from its articles of association and the Companies Act 2006. In exercising these powers, the trustees must act in accordance with their duties as charity trustees and as company directors as set out in the Charities Act 2011 and the Companies Act 2006. They must also act in accordance with the Trustee Act 2000. These powers of investment are wide, allowing the trustees to invest in such stocks, funds, shares, equities or other investments as they see fit.

Following the reconstitution of the charity, new trustees are appointed by the trustee board after open competition. Several trustees who were previously trustees of the former NHS charity are now trustees of the incorporated charity; in addition, the RFL has the right to appoint and remove one trustee. Currently this is Dr Chris Streather, group chief medical director at the RFL.

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

REMUNERATION

The remuneration of senior staff is agreed by the trustees, following a comparison of their posts with similar positions in the charity sector generally.

By order of the trustees

CHAIR

Judy Dewinter

The chair of the trustees aims for new and existing trustees to be fully briefed on the key issues facing the Royal Free Charity, including Charity Commission information on trustee.

TRUSTEE TREASURER

Nina Robinson

REFERENCE AND ADMINISTRATIVE DETAIL

FINANCIAL STATEMENTS

The audited consolidated COMPANY NUMBER financial statements comply with the Statement of Recommended Practice ‘Accounting and CHARITY NUMBER Reporting by Charities’ FRS 102 including Update Bulletin 2, the Charities Act 2011 and the REGISTERED OFFICE Companies Act 2006. Royal Free Charity

09987907 in England and Wales

1165672 in England and Wales

Royal Free Charity Pears Building London NW3 2PP

CHARITY STATUS

The charity is a company limited by guarantee. Its members are the trustees of the charity, of whom there may be a maximum of 12. Each member guarantees to contribute up to one pound sterling (£1) to the charity’s debts, liabilities and costs in the event of the charity being wound up and for one year after ceasing to be a member.

CHARITY OBJECTS

The objects of the charity are for the public benefit, to:

(c) advance and promote knowledge and education in medicine, including by engaging in and supporting medical research.

GOVERNING DOCUMENT

The Royal Free Charity is governed by its Articles of Association dated 4 February 2016.

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INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF THE ROYAL FREE CHARITY

OPINION

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

OTHER INFORMATION

We have audited the financial statements of the Royal Free Charity for the year ended 31 March 2021 which comprise the group statement of financial activities, the group and parent charitable company balance sheets, the group cash flow statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

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

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.

In our opinion the financial statements:

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

We have nothing to report in this regard.

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

OPINIONS ON OTHER

BASIS FOR OPINION

MATTERS PRESCRIBED BY THE

We conducted our audit in accordance with International Standards on Auditing (UK)

COMPANIES ACT 2006 In our opinion, based on the

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF THE ROYAL FREE CHARITY (CONT.)

work undertaken in the course of the audit:

information and explanations and to issue an auditor’s report we require for our audit. that includes our opinion. Reasonable assurance is a RESPONSIBILITIES OF high level of assurance, but is not a guarantee that an audit As explained more fully in conducted in accordance with the trustees’ responsibilities ISAs (UK) will always detect a statement set out on page 3, material misstatement when the trustees (who are also the it exists. Misstatements can directors of the charitable arise from fraud or error and company for the purposes of are considered material if, company law) are responsible individually or in aggregate, for the preparation of the they could reasonably be financial statements and for expected to influence the being satisfied that they give a economic decisions of users true and fair view, and for such taken on the basis of these internal control as the trustees financial statements.

RESPONSIBILITIES OF

TRUSTEES

MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION

As part of an audit in accordance

with international standards on auditing (ISAs) (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

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

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35

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF THE ROYAL FREE CHARITY (CONT.)

opinion on the effectiveness of the group and parent charitable company’s internal control.

audit evidence regarding the financial information of the entities or business activities within the group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit report.

to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the charitable company.

• conclude on the appropriateness of the trustees’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the group and parent charitable company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the group or parent charitable company to cease to continue as a going concern. • evaluate the overall

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

Our approach was as follows:

EXPLANATION AS TO WHAT EXTENT THE AUDIT WAS CONSIDERED CAPABLE OF DETECTING IRREGULARITIES, INCLUDING FRAUD

• We obtained an understanding of how the charitable company complies with these requirements by discussions with management and those charged with governance.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

• We assessed the risk of material misstatement of the financial statements, including the risk of material misstatement due to fraud and how it might occur, by holding discussions with management and those charged with governance.

The objectives of our audit in respect of fraud, are to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF THE ROYAL FREE CHARITY (CONT.)

appropriate audit procedures to identify instances of non-compliance with laws and regulations. This included making enquiries of management and those charged with governance and obtaining additional corroborative evidence as required.

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

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

Luke Holt, Senior Statutory Auditor

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

Devonshire House 60 Goswell Road London EC1M 7AD

USE OF OUR REPORT

This report is made solely to the charitable company’s members,

Date: 4 January 2022

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37

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES

Year ended 31 March 2021

Year ended 31 March 2020

Income and endowments:
Note
Donations and legacies
2
Charitable activities
Other trading activities
Investments
8.3
Other
Events
Other Income
Total income:
Expenditure:
Raising funds
4
Fundraising expenditure
Trading expenditure
Investment/property management
Charitable activities
3
Total expenditure
Net gains/(losses) on investments
8.5
Net income/(expenditure)
Transfer between funds
11
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Total funds carried forward		 Unrestricted
funds
£000
Restricted
funds
£000
Total
2020/21
£000
6,302
82
6,384
27
-
27
280
-
280
1,292
25
1,317
164
4
169
301
-
301
8,366
112
8,478
948
-
948
1,025
-
1,025
651
-
651
7,740
4,191
11,930
10,364
4,191
14,554
6,690
400
7,090
4,692
(3,679)
1,014
-
-
-
4,692
(3,679)
1,014
50,464
41,776
92,240
55,156
38,097
93,254		 Unrestricted
funds
£000
Restricted
funds
£000
Total
2019/20
£000
4,357
2,053
6,409
220
-
220
900
-
900
1,610
123
1,733
230
3
232
-
-
-
7,317
2,178
9,496
499
-
499
1,020
-
1,020
49
-
49
6,143
206
6,348
7,711
206
7,916
(3,016)
(199)
(3,215)
(3,409)
1,774
(1,635)
47
(47)
-
(3,362)
1,727
(1,635)
53,826
40,049
93,875
50,464
41,776
92,240

The notes on pages 41 to 53 form part of these accounts.

CONSOLIDATED AND CHARITY BALANCE SHEET

Fixed assets
Note
Tangible assets
6
Asset under construction
6
Investments
8
Total fxed assets
Current assets
Debtors
9
Short-term deposits
Cash at bank and in hand
Total current assets
Creditors falling due within one year
10.1
Net current assets
Total net assets
Funds of the charity
Income funds
Unrestricted
11.1
Restricted
11.3
Total funds		 Group
March
2021
£000
Charity
March
2021
£000
Group
March
2020
£000
Charity
March
2020
£000
410
391
483
451
58,583
61,346
47,398
49,630
30,541
30,680
27,707
27,846
89,534
92,417
75,588
77,926
4,114
5,484
8,107
9,596
-
-
5,005
5,005
12,393
11,091
10,773
9,141
16,507
16,576
23,885
23,742
(12,787)
(12,915)
(7,233)
(7,195)
3,721
3,660
16,651
16,547
93,254
96,077
92,240
94,474
55,157
57,980
50,464
52,698
38,097
38,097
41,776
41,776
93,254
96,077
92,240
94,474

The notes on pages 41 to 53 form part of these accounts.

As permitted by section 408 of the Companies Act 2006, the parent charity’s gross income and results have not been included in the financial statements. The net income of the charity for the year was £1,603,000 (2019/20: net expenditure of £518,000).

Chair Judy Dewinter

Trustee Treasurer Nina Robinson

Date 21 December 2021 Company registration no: 09987907

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39

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021

CONSOLIDATED CASH FLOW STATEMENT

Cash infow/(outfow) from operating activities
Net cash provided by/(used in) operating activities
Cash fows from investing activities
Investment income and interest received
Proceeds from disposal of fxed asset investments
Acquisition of fxed asset investments
Acquisition of tangible fxed assets by charity
Acquisiton by subsidiary companies of:
Tangible fxed assets
Asset under construction
Net cash fow from investing activities
Cash fow from fnancing activities
Repayment of loan
Increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period
Reconciliation of net income/(expenditure) to cash fow from
Net income/(expenditure) including endowments
Adjustments:
Depreciation charges
Net (gains)/losses on investments
Investment income
Loss on disposal of tangible fxed assets by charity
Decrease in debtors
Increase/(decrease) in creditors
Net cash provided by/(used in) operating activities
Analysis of net cash
Short-term deposits
Cash at bank and in hand		 2020/21
2019/20
£000
£000
5,114
11,238
1,317
1,733
2,708
3,440
(1,299)
(7,525)
(39)
(2,956)
0
(1)
(11,185)
(23,526)
(8,499)
(28,836)
-
-
(3,385)
(17,598)
15,778
33,376
12,393
15,778
operating activities
2020/21
2019/20
£000
£000
1,014
(1,635)
13
66
(4,243)
3,269
(1,317)
(1,733)
100
0
3,993
11,668
5,554
(398)
5,114
11,238
01 April 2020
Cashfows
31 March 2021
£000
£000
£000
5,005
(5,005)
-
10,773
1,620
12,393		 2020/21
2019/20
£000
£000
5,114
11,238
1,317
1,733
2,708
3,440
(1,299)
(7,525)
(39)
(2,956)
0
(1)
(11,185)
(23,526)
(8,499)
(28,836)
-
-
(3,385)
(17,598)
15,778
33,376
12,393
15,778
5,114
11,238
Cashfows
31 March 2021
£000
£000
(5,005)
-
1,620
12,393
15,778 (3,385)
12,393

The notes on pages 41 to 53 form part of these accounts.

1 ACCOUNTING POLICIES BASIS OF PREPARATION

These financial statements are prepared on a going concern basis, under the historical cost convention, as modified by the revaluation of investments being measured at fair value via income and expenditure within the statement of financial activities.

They are prepared in accordance with the financial reporting standard applicable in the UK (FRS 102). The charity is a public benefit group for the purposes of FRS 102, and so it also prepared its financial statements in

accordance with the statement of recommended practice applicable to charities preparing their accounts in accordance with the financial reporting standard applicable in the UK (FRS 102 Charities SORP), the Companies Act 2006 and the Charities Act 2011.

They are prepared in sterling, which is the charity’s functional currency. Monetary amounts in the financial statements are rounded to the nearest £1,000.

GOING CONCERN

The trustees assessed the suitability of the use of the going concern basis, and considered possible events or conditions including COVID-19 that might significantly affect the charity’s ability to continue as a going concern. In making this assessment, for a period of at least one year from the date of approval of the financial statements, they considered the charity’s forecasts and projections, and noted the pressures on donation, legacy and investment

income. After making enquiries and considering the available cash balances and funds within the investment portfolio, which has recovered significantly since the year end, the trustees believe that the charity has adequate resources to continue in operational existence for the foreseeable future. It therefore adopts the going concern basis in preparing its financial statements.

basis, or to realise the assets and settle the liability simultaneously. Apart from pre-payments, deferred income and balances with HMRC under statute, all other debtor and creditor balances, as shown in notes 10 and 11, are considered to be basic financial instruments under FRS 102.

CONSOLIDATION

These financial statements consolidate on a line-by-line basis the financial statements of the company (the Royal Free Charity) and its subsidiaries, RFC Developments Ltd and RFC Recreation Club Ltd.

ESTIMATES AND JUDGEMENTS

Works of art are valued in the balance sheet at £317,020 (£317,020 in 2020), a figure which the trustees believe fairly reflects their value.

Investment properties are valued

CASH AND CASH EQUIVALENTS

in the balance sheet at £1,401,000 (£2,753,000 in 2020), a figure which the trustees believe fairly reflects their value. Mixed motive investment represents a property valued in the balance sheet at £13,770,000 (2019/20: £10,204,000), a figure which the trustees believe fairly reflects its value. See the accounting policy for investment properties which explains how the valuation has been arrived at.

Cash and cash equivalents include cash in hand, deposits at call with banks and other short-term liquid investments with original maturities of three months or less.

FUND STRUCTURE

Restricted funds are funds for which a legal restriction exists over their use, as determined by the donor. This could be a restriction to a particular department of the hospital (eg cardiac or renal), or to a particular sphere of activity (eg research, equipment.)

FINANCIAL INSTRUMENTS

The charity has applied the research, equipment.) provisions of Section 11 “Basic Financial Instruments” of FRS 102 Unrestricted funds may be used to all its financial instruments. at the trustees’ discretion for any They are recognised in the general purpose of the charity. charity’s balance sheet when the charity becomes party to INCOME the contractual provisions of All income is included in full in the the instrument. Financial assets statement of financial activities and liabilities are offset, with the as soon as the following three net amounts presented in the factors can be met: financial statements, when there (a) entitlement - arises when a is a legally enforceable right to particular resource is receivable offset the recognised amounts or the charity’s right becomes and an intention to settle on a net legally enforceable.

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41

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021 (CONT.)

The salaries of the charity’s staff are apportioned individually across these expense categories, reflecting the time spent by each individual on the relevant activities.

(b) probability - when it is probable

gifts in kind for 2020/21 was £272k.

EXPENDITURE

(c) measurement - when the monetary value of the incoming resources can be measured with sufficient reliability.

Liabilities are recognised as expenditure if the charity has a legal or constructive obligation that commits it to the expenditure, or if there is a constructive obligation to make a transfer of value to a third party. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the particular category. Governance costs comprise the costs of complying with statutory requirements.

GRANTS

Grants are accrued in full when there is a binding commitment by the charity to transfer the amounts involved to a third party.

GOVERNMENT GRANTS

Grants relating to revenue are recognised in income on a systematic basis over the periods in which the charity recognises the associated costs for which the grant is intended to compensate. This includes £215,542 of government assistance under the coronavirus job retention scheme relating to staff who were furloughed due to COVID-19.

INVESTMENTS

Investments are shown in the balance sheet at market value.

One investment property was valued in 2019/20 by Cluttons, chartered surveyors. A second property has been valued in the year by Montagu Evans, chartered surveyors. The trustees are satisfied that these valuations reflect the properties’ fair value.

ALLOCATION OF OVERHEAD AND SUPPORT COSTS

Overhead costs have been divided into the categories shown in note 4, and apportioned between those categories (raising funds, and charitable expenditure), on the basis of their relevance to each category. In 2020/21, as in 2019/20, a direct charge was made to restricted and designated funds in recognition of the overhead and support costs relating to those funds.

GIFTS IN KIND

Gifts in kind are recognised as income and expenditure in the year the gifts are received by the charity. The amount at which gifts in kind are recognised is either the value of the cost to the donor or the fair value determined by the charity. The gifts are then directed to the relevant department or ward at the trust. Total value of

TANGIBLE FIXED ASSETS

Tangible fixed assets are stated at cost less depreciation. Depreciation is calculated to write off the cost less estimated residual value of each asset over its expected useful life, as follows:

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021 (CONT.)

are calculated as the difference between sale proceeds and opening market values (or date of purchase if later). Unrealised gains and losses are calculated as the difference between market value at the year end and opening market value (or date of purchase if later).

At the end of each reporting period, the residual values and useful lives of assets are reviewed and adjusted if necessary. In addition, if events or change in circumstances indicate that the carrying value may not be recoverable, the carrying values are reviewed for impairment.

predecessor of the Royal Free London NHS Foundation Trust) participate in the NHS Pension Scheme. Some current staff remain in that pension scheme, but new employees participate in personal pension schemes in which the employer’s contribution matches that of the employee. Staff of the charity’s trading subsidiary, RFC Recreation Club Ltd, also participate in personal pension schemes. The NHS Pension Scheme is a multi employer defined benefit scheme but under SORP 28.11, this is accounted for in these financial statements as if it were a defined contribution scheme.

ASSET UNDER CONSTRUCTION

POOLING SCHEME

The asset under construction is the Pears Building, constructed on the Royal Free Hospital site, to house the UCL Institute of Immunity and Transplantation, patient accommodation and a car park. The costs incurred to date relate to construction, architects and other professional fees. Depreciation will not be charged until the building is ready to be brought into use. Practical completion of the building was achieved in June 2021.

A pooling scheme for all funds held under the auspices of the Royal Free Charity is contained within a Charity Commission scheme dated 1 April 2016. It covers all funds formerly held by the special trustees for the Royal Free Hospital, the Royal Free Hampstead Charities, the Dresden Assistance Fund for the Royal Free Hospital and the Kitty Cookson Memorial Fund. It does not distinguish between the different types of funds (unrestricted, designated, restricted), which are pooled together.

OPERATING LEASE

Rentals paid under operating leases are charged to the profit and loss account evenly over the period of the lease.

REALISED GAINS AND LOSSES

Gains and losses are reported in the statement of financial activities as they arise. Realised gains and losses on investments

PENSION COSTS

Staff who were formerly employed by the Royal Free Hampstead NHS Trust (the

----- Start of picture text -----
ASSET TYPE CAPITALISATION THRESHOLD DEPRECIATION
----- End of picture text -----

ASSET TYPE CAPITALISATION THRESHOLD DEPRECIATION
Computer equipment £2,500 individually or exceeding £5,000 in aggregate 3 years
Computer systems development £25,000 in aggregate 5 years
Software (purchased or developed) £25,000 5 years or expected life, if shorter
Computer development £2,500 individually or exceeding £5,000 in aggregate 5 years
Recreation equipment £1,000 individually or exceeding £1,000 in aggregate 5 years
Shop EPOS system £5,000 5 years
Shop ft-outs £5,000 Lease term
Furniture and fttings £2,500 individually or exceeding £5,000 in aggregate 5 years
Asset under construction Cost Not depreciated
Works of art Market value Not depreciated

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42

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021 (CONT.)

2. Donations and legacies
Donations - capital appeal
Donations - others
Legacies
Total
3. Charitable expenditure
Patient welfare and facilities
Staf training and development
Research
Medical equipment
Total		 Unrestricted
funds
£000
Restricted
funds
£000
Total
2020/21
£000
-
22
22
5,977
19
5,996
324
42
366
6,302
82
6,384
Grants
£000
Activities
undertaken
directly
£000
Support
costs
£000
Total
2020/21
£000
972
1,729
527
3,228
1,044
1,150
428
2,622
3,980
1,106
992
6,079
-
-
-
0
5,996
3,986
1,948
11,930		 Unrestricted
funds
£000
Restricted
funds
£000
Total
2019/20
£000
-
2,003
2,003
3,070
37
3,107
1,287
13
1,299
4,357
2,053
6,409
Grants
£000
Activities
undertaken
directly
£000
Support
costs
£000
Total
2019/20
£000
84
1,291
505
1,880
299
956
461
1,716
431
1,224
608
2,263
-
358
131
490
814
3,829
1,705
6,348

All grants were made to institutions. There were no grants to individuals.

4. Analysis of support costs by activity

Salaries - charity
Salaries - trading subsidiary
Investment/property
management
Other trading subsidiary costs
Charity trading costs
Statutory auditor’s
remuneration
Legal and other professional
fees
Event and marketing costs
Consultancy/recruitment
services
Publicity materials
Capital appeal costs
Others
Total support costs
Governance costs reallocated
Total support costs		 Governance
£000
Raising
funds
£000
Charitable
activities
£000
Total
2020/21
£000
161
535
869
1,564
-
243
-
243
-
651
-
651
-
140
-
140
-
642
-
642
18
-
-
18
263
135
-
398
-
3
3
7
114
-
272
386
-
162
-
162
-
-
87
87
14
113
147
274
570
2,624
1,378
4,571
(570)
-
570
-
-
2,624
1,948
4,571		 Governance
£000
Raising
funds
£000
Charitable
activities
£000
Total
2019/20
£000
149
386
483
1,018
-
284
-
284
-
49
173
222
-
237
-
237
-
499
-
499
17
-
-
17
185
-
-
185
-
21
2
22
131
16
224
371
-
35
-
35
-
-
223
223
36
41
83
161
518
1,569
1,187
3,274
(518)
-
518
-
-
1,569
1,705
3,274

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021 (CONT.)


NOTES TO THE ACCOUNT		 SFOR THE YEAR ENDED 31 MARCH 2021 (CONT.)
4.1 Analysis of staf costs
Salaries and wages
Social security costs
Other pension costs
Total		 Charity
£000
Subsidiary
£000
Total
2020/21
£000
2,325
210
2,535
213
19
232
114
12
126
2,652
241
2,893		 Charity
£000
Subsidiary
£000
Total
2019/20
£000
1,847
253
2,100
167
20
187
120
11
131
2,134
284
2,418

No employee of any subsidiary company received emoluments exceeding £60,000. The number of such employees of the charity were:

2020/21 2019/20
£60,001-£70,000 4 1
£70,001-£80,000 1 -
£80,001-£90,000 1 1
£90,001-£100,000 2 1
£120,001-£130,000 - 1
Pension contributions were made for these employees as follows:
£000 £000
£60,001-£70,000 16 6
£70,001-£80,000 2 -
£80,001-£90,000 8 8
£90,001-£100,000 8 4
£120,001-£130,000 - 21

There was an average monthly number of 61 staff in 2020/21 (2019/20: 63). RFC Recreation Club Ltd had an average number of 9 staff (2019/20: 11), and RFC Developments Ltd did not employ any staff.

The key management personnel during the year were Christopher Burghes (chief executive - until May 2020), Alison Kira (director of grants and services), Sharron Grant (director of people - from May 2020), Paul Stein (executive director of fundraising and communications), Barry Aspland (director of finance), Richard Scarth (director of operations and then deputy chief executive - until January 2021), Jenny Todd (assistant director of services), Michael Ridgewell (chief operating officer - from July 2020), Jon Spiers (chief executive officer - from September 2020) and Robin Meltzer (director of engagement and communications - from July 2020). The total salary cost of the key management personnel (including social security and employer pension costs) was £833,000 (2019/20: £479,000). The increase is mainly due to addition of a number of new roles to the senior leadership team during 2020/21.

During the year, the charity made a total termination payment of £134,000 (2019/20: none) due to redundancies mainly following the adverse impact of the pandemic which led to permanent closure of all charity shops and the reduction of voluntary services in hospital premises.

These costs are initially all charged to unrestricted funds, except for certain specific costs that relate to particular special purpose funds. Besides a share of investment management costs, each special purpose fund bears a levy as a contribution towards the other overhead costs, in recognition that some of these costs are incurred in relation to those funds. In 2020/21, this charge was £157,000 (2019/20: £171,000).

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45

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021 (CONT.)

5. Analysis of net assets between funds

5. Analysis of net assets between funds
Group
Fixed assets
Investment
Current assets
Liabilities
Charity
Intangible fxed assets
Tangible fxed assets
Investments
Current assets
Short-term liabilities
Long-term liabilities		 Unrestricted
funds
£000
Restricted
funds
£000
Total
2020/21
£000
24,927
34,065
58,993
28,454
2,086
30,541
10,288
6,220
16,507
(8,513)
(4,274)
(12,787)
55,157
38,097
93,254
Unrestricted
Funds
£000
Restricted
Funds
£000
Total
2020/21
£000
-
-
0
27,671
34,065
61,737
28,594
2,086
30,680
10,356
6,220
16,576
(8,641)
(4,274)
(12,915)
-
-
-
57,980
38,097
96,077		 Unrestricted
funds
£000
Restricted
funds
£000
Total
2019/20
£000
47,881
-
47,881
26,038
1,669
27,707
(16,466)
40,351
23,885
(6,989)
(244)
(7,233)
50,464
41,776
92,240
Unrestricted
Funds
£000
Restricted
Funds
£000
Total
2019/20
£000
9
-
9
50,072
-
50,072
26,177
1,669
27,846
(16,609)
40,351
23,742
(6,951)
(244)
(7,195)
-
-
-
52,698
41,776
94,474

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021 (CONT.)

NOTES TO THE AC COUNT SFOR THE YEAR ENDED 31 MARCH 2021 (CONT.)
6.1 Fixed assets - group
Cost
Brought forward at 1 April 2020
Additions
Disposals
Carried forward at 31 March 2021
Accumlated depreciation
Brought forward at 1 April 2020
Charge for the year
Depreciation on disposals
Carried forward at 31 March
2021
Net book value at 1 April 2020
Net book value at 31 March 2021
6.2 Fixed assets - group
Cost
Brought forward at 1 April 2020
Additions
Disposals
Carried forward at 31 March
2021
Accumlated depreciation
Brought forward at 1 April 2020
Disposals
Charge for the year
Carried forward at 31 March 2021
Net book value at 1 April 2020
Net book value at 31 March 2021		 Recreational
equipment
£000
85
-
-
Shop
system
Shop ft
- out
Furniture
& fxtures
Artworks
Asset under
construction
Computer
equipment
Properties
Total
£000
£000
£000
£000
£000
£000
£000
£000
19
198
34
317
47,398
11
-
48,062
-
-
-
-
11,185
39
-
11,224
(19)
(198)
-
-
-
(11)
-
(228)
85 0
0
34
317
58,583
39
0
59,058
52
13
-		 10
107
-
-
-
11
-
181
-
-
-
-
-
-
-
13
(10)
(107)
-
-
-
(11)
-
(128)
65 0
0
0
0
0
0
0
66
33 9
91
34
317
47,398
-
-
47,881
20 -
-
34
317
58,583
39
-
58,993
Shop
system
Shop ft
- out
Furniture
& fxtures
Artworks
Asset under
construction
Computer
equipment
Properties
Total
£000
£000
£000
£000
£000
£000
£000
£000
19
198
34
317
49,630
11
-
50,209
-
-
-
-
11,716
39
-
11,755
(19)
(198)
-
-
-
(11)
-
(228)
0
0
34
317
61,346
39
0
61,736
10
107
-
-
-
11
-
128
(10)
(107)
-
-
-
(11)
-
(128)
-
-
-
-
-
-
-
-
0
0
0
0
0
0
0
0
9
91
34
317
49,630
-
-
50,081
-
-
34
317
61,346
39
0
61,737

7 Subsidiary companies

Details of the charity’s subsidiary undertakings are set out below. All the subsidiary undertakings are incorporated in England and Wales and operate in the United Kingdom.

Company Shares
held class %
RFC Recreation Club Ltd Ordinary 100
RFC Developments Ltd Ordinary 100
RFC Enterprises Ltd Ordinary 100
RFC Properties Ltd Ordinary 100
RFC Overage Ltd (previously called: RFC
Properties (CF Holdings) Ltd) Ordinary 100

Principal activity

Provision of recreational services Design, construction and building services Company dormant and not yet trading Company dormant and not yet trading Company dormant and not yet trading

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47

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021 (CONT.)

7 Subsidiary companies (continued)

The results of the subsidiaries, and their assets and liabilities, are as follows:

Turnover
Expenditure
Result of the year
Total assets
Total liabilities
Net funds at the end of the year		 Year ended 31 March
2021
RFC
Recreation
Club Ltd
RFC
Developments
Club Ltd
£000
£000
319
11,661
(377)
(11,257)
(58)
404
251
4,335
(172)
(4,335)
79
-		 Year ended 31 March
2020
RFC
Recreation
Club Ltd
RFC
Developments
Club Ltd
£000
£000
510
24,543
(516)
(23,561)
(6)
982
253
5,943
(116)
(5,943)
137
-

The charity’s other subsidiary companies (see note 15) did not trade during 2020/21

8 Analysis of investment portfolio
Market value as at 1 April
Less: disposals at carrying value
Add: acquisitions at cost
Transfer from fxed assets
Net gain/(loss) on revaluation
Market value as at 31 March		 Group
2020/21
Charity
2020/21
£000
£000
27,707
27,846
(2,708)
(2,708)
1,299
1,299
-
-
4,243
4,243
30,541
30,680		 Group
2019/20
Charity
2019/20
£000
£000
16,687
16,826
(3,440)
(3,440)
7,525
7,525
10,204
10,204
(3,269)
(3,269)
27,707
27,846

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021 (CONT.)

8.2 Mixed motive investment

8.2 Mixed motive investment
Market value as at 1 April
Add: acquisitions at cost
Add: gain on revaluation
Transfer from fxed assets
Market value as at 31 March		 Group
2020/21
Charity
2020/21
£000
£000
10,204
10,204
45
45
3,521
3,521
-
-
13,770
13,770		 Group
2019/20
Charity
2019/20
£000
£000
-
-
-
-
-
-
10,204
10,204
10,204
10,204

Mixed motive investments relate to a property used to help to fullfil the charity’s charitable objectives as well as generating investment income. A “red book” valuation of of that property, using a sector specific valuation toolkit (PodPlan), resulted in a value of £13.8m and an unrealised gain of £3.5m over its previous book value of £10.2m.

8.3 Analysis of investment income
Investment properties
Mixed motive investment
Investments in common investment
funds
Cash held outside the investment
portfolio
Total investment income		 Held In UK
Held
Overseas
2020/21
Total
Held In UK
Held
Overseas
2019/20
Total
£000
£000
£000
£000
£000
£000
307
-
307
683
-
683
625
-
625
73
-
73
369
-
369
819
-
819
16
-
16
158
-
158
1,317
-
1,317
1,733
-
1,733
8.1 Market value at 31 March
Investment properties
Mixed motive investment (see note 8.2)
Investments listed on the London Stock
Exchange
Investments in common investment
funds
Cash held within the investment
portfolio
Total investments - group
Investments in subsidiary companies
Total investments - charity		 Held In UK
Held
Overseas
2020/21
Total
Held In UK
Held
Overseas
2019/20
Total
£000
£000
£000
£000
£000
£000
1,401
-
1,401
2,753
-
2,753
13,770
-
13,770
10,204
-
10,204

-
39
39
-
39
39
15,238
-
15,238
14,486
-
14,486
93
-
93
226
-
226
30,502
39
30,541
27,668
39
27,707
139
-
139
139
-
139
30,641
39
30,680
27,807
39
27,846

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NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021 (CONT.)

8.4 Details of material investment holdings

The charity has two investment managers. Investments in individual entities representing over 5% of the respective managers’ portfolios are:

Holding Value 2021 Value 2020
£000 £000
M&G Charifund - 9,221
Charibond 7,233 -
Majedie Asset Management UK
Cazenove Equity 171 533
Charity Equity Value Fund 283 336
Findlay Park American Fund 223 515
UBS ETF - MSCI World Socially 1,228 397
Trojan Ethical Fund 426 446
BlackRock iShares Developed World 658 -

8.5 Gains/losses on investments

The 2020/21 net gain of £3.6m include £0.7m unrealised gain on investment in common investment funds and £1.6m gain on disposal of remaining part of the charity’s investment property on the Gray’s Inn Road site of the Royal National Throat Nose and Ear Hospital.

The 2019/20 net losses of £3.2m include £3.6m unrealised loss on investment in common investment funds.

9 Analysis of debtors
Pre-payments
Due from subsidiary undertakings:
RFC Developments Ltd
RFC Recreation Club Ltd
Other debtors
Total debtors		 Group
2021
Charity
2021
Group
2020
Charity
2020
£000
£000
£000
£000
5
5
45
45
-
1,462
-
2,049
-
134
-
20
4,109
3,883
8,062
7,482
4,114
5,484
8,107
9,596

In 2013/14, the charity made a loan of £500,000 to its subsidiary, RFC Developments Ltd, at a premium of 6% above base rate, regarding a major development project on the Royal Free Hospital site. The loan was increased to £1 million in January 2016, and is due for repayment upon the completion of the development. Repayment is expected to be in the financial year 2022/23.

Other debtors include £60,000 (2019/20: £6.1 million) relating to the development project. It is due for receipt in 2021/22, and as at 31 March 2021, there was none due after more than one year. All other debtors fall due within one year.

10 Analysis of creditors

10 Analysis of creditors
10.1 Creditors falling due within one year Group
2021		 Charity
2021		 Group
2020		 Charity
2020
£000 £000 £000 £000
Grant and other accruals 7,248 7,248 2,196 2,196
Due to subsidiary undertaking - RFC Developments Ltd - 3,039 - 3,972
Other creditors 5,539 2,629 5,037 1,027
Total creditors falling due within one year 12,787 12,915 7,233 7,195

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021 (CONT.)

11 Analysis of material funds

11 Analysis of material funds
11.1 Unrestricted funds
Designated funds:
Friends Fund - transferred from the formerly separate
charity,
Friends of the Royal Free Hospital
Departmental funds - Royal Free Hospital
Clinical Biochemistry
HIV/AIDS
Others
Total designated funds
Other general funds (undesignated)*
Total unrestricted funds		 2020/21
Restated
2019/20
£000
£000
580
564
2,672
2,872
1,435
1,461
13,250
11,926
17,937
16,823
37,220
33,641
55,157
50,464

*These funds derive from donations and legacies made by grateful patients and their relatives over many years, and are under the day-to-day control of fund holders in specific areas of the Royal Free London NHS Foundation Trust (cardiac, renal, etc) for use on appropriate projects as they arise.

**In 2019/20, a classification error was made which resulted in understatement of designated funds and overstatement of general funds by £2.2m. However, the error did not affect total value of unrestricted funds. Accordingly, the 2019/20 figures for designated funds and general funds are now restated.

11.2 Free reserves
General funds
Less: total fxed assets
Add back: fxed assets covered by restricted funds
Less: investment properties
Less: mixed motive investment
Less: Pears Building commitments
Less: balance on COVID-19 appeal fund, included in general
funds
Free reserves
11.3 Restricted funds
Restricted Funds 2020/21
Capital appeal
Peter Costin Memorial
St Peter’s Trust
Dresden Assistance
Kitty Cookson Memorial
J F Moorhead
Dr Janet Owens Fellowship
Total restricted funds		 Opening
balance
Income
Expenditure
£000
£000
£000
37,895
24
(3,854)
604
-
(15)
489
63
(266)
450
-
(27)
114
-
(1)
1,650
25
(22)
574
-
(5)		 2020/21
Restated
2019/20
£000
£000
37,220
33,641
(58,993)
(47,881)
34,065
35,641
(1,401)
(2,753)
(13,770)
(10,204)
(1,119)
(13,343)
-
(251)
(3,997)
(5,150)
Transfers
Gains
(loss)
Closing
balance
£000
£000
£000
-
-
34,065
-
-
589
-
-
287
-
-
422
-
-
113
-
400
2,052
-
-
569
41,776
112
(4,191)		 -
400
38,097

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NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021 (CONT.)

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021 (CONT.)

11.3 Restricted funds (contd)

11.3 Restricted funds (contd)
Restricted Funds 2019/20
Capital Appeal
Beckett Legacy
Peter Costin Memorial
St Peter’s Trust
Dresden Assistance
Kitty Cookson Memorial
J F Moorhead
Dr Janet Owens Fellowship
Others (revaluation reserve)
Total restricted funds		 Opening
balance
Income
Expenditure
Transfers
Gains
Closing
balance
£000
£000
£000
£000
£000
£000
35,880
2,005
-
10
-
37,895
17
-
(17)
-
-
0
591
29
(15)
-
-
604
524
70
(104)
-
-
489
487
-
(37)
-
-
450
110
5
(1)
-
-
114
1,831
43
(25)
-
(199)
1,650
552
27
(5)
-
-
574
57
-
-
(57)
-
0
40,049
2,178
(205)
(47)
(199)
41,776

11.4 Details of restricted funds

Capital Appeal Beckett Legacy Peter Costin Memorial St Peter’s Trust

To fund the building of the UCL Institute of Immunity and Transplantation

To fund a lecturer in medicine

To provide bursaries to medical students

To support kidney, bladder and prostate research

Dresden Assistance

To support needy patients upon discharge from hospital To support an oncology fellowship

Kitty Cookson Memorial

J F Moorhead Dr Janet Owens Fellowship

To support renal research To support Parkinson’s research

12 Contingent liabilities

The construction of the Pears Building is complete and the charity is in early-stage discussions with the contractor for outstanding works and defects in the final settlement for works. At this stage, it is not possible to quantify the settlement amount or the timescale for completion of remedial work.

There were no other contingent liabilities at either 31 March 2021 or 31 March 2020.

13 Post balance sheet events

The charity paid RFC Recreation Club Ltd £10,079 (209/20: £2,480) in respect of the use of facilities. None of this was outstanding at 31 March 2021. The charity didn’t award a grant in 2020/21 (2019/20: £12,000). The charity was also charged £77,854 by the club for use of its space for the Free at the Free project during the pandemic which involved provision of free food and drink to staff at the Royal Free Hospital. In 2019/20, the charity was charged £14,968 by the club representing cost share on the wellbeing centre but there was none in 2020/21 following closure of the centre.

RFC Developments Ltd (company no 8729267) - Jonathan Spiers (appointed 18/9/20), Richard Scarth (resigned 20/1/21), and five trustees of the charity, Caroline Clarke, Chris Streather, Russell Gilbert, Judy Dewinter and Alistair Summers (appointed 23/3/21), are directors. In 2020/21, the transactions between RFC Developments Ltd and the charity were:

Purchase of design and build services by the charity from RFC Developments Ltd - the charity was charged £11,661,265 (2019/20: £24,543,264), and £3,038,534 (2019/20: £3,971,534) was due to RFC Developments Ltd at 31 March 2021.

Loan of £1 million from the charity to RFC Developments Ltd (see note 10) - RFC Developments Ltd was charged interest of £61,000 (2019/20: £67,500), none of which was outstanding at 31 March 2021 (31 March 2020: none).

Provision of administrative services by the charity to RFC Developments Ltd - RFC Developments Ltd was charged £60,000 (2019/20: £60,000), none of which was outstanding at 31 March 2021 (31 March 2020: none).

During the year RFC Developments Ltd made a gift aid distribution to the charity of £404,316 (2019/20: £981,715).

15 Related party interests (cont)

The following three subsidiary companies did not trade in 2020/21:

RFC Enterprises Ltd (company no 8729268)

RFC Properties Ltd (company no 10609331)

RFC Overage Ltd (previously called: RFC Properties (CF Holdings) Ltd) (company no 10699295)

16 Operating leases

At the reporting date, the charity had outstanding minimum future payments in respect of non-cancellable operating leases, which fall due as follows:

2020/21 2019/20
£000 £000
Due in less than one year 25 120
Due in 1-2 years 22 105
Due in 2-5 years 0 48

The construction of the Pears Building completed with a practical completion date of 1 June 2021.

17 Members’ liability

14 Trustees and connected persons transactions

No trustee or member of the key management staff or person related to them undertook any material transactions with the charity in either 2020/21 or 2019/20.

The charitable company is limited by guarantee, not having share capital, and consequently the liability of members is limited subject to an undertaking by each member to contribute to the net assets or liabilities of the charitable company on winding up, such amounts as may be required not exceeding £1.

No trustees were reimbursed any expenses in 2020/21 or 2019/20.

14 Related party interests

Caroline Clarke (resigned 31/3/19, reappointed 24/6/20), Judy Dewinter, and Akta Raja respectively group chief executive, lead governor (retired) and non-executive director of the Royal Free London NHS Foundation Trust, are trustees of the charity.

The charity has five subsidiary companies, in all of which it is sole shareholder, as follows:

RFC Recreation Club Ltd (company no 7686541) - Melanie Sherwood (appointed 16/6/20), Richard Scarth (resigned 16/3/21), Kedir Mohammed, Alison Kira (appointed16/3/21), and Jennifer Todd (appointed 16/3/21), respectively trustee, deputy chief executive, finance manager, director of grants and services and assistant director of services of the charity, are directors. In 2020/21, RFC Recreation Club Ltd reimbursed the charity £151,956 in respect of staff salaries (2019/20: £241,046). There was £134,376 due to the charity at 31 March 2021 (31 March 2020: £20,092).

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PROFESSIONAL ADVISERS

BANKERS

Lloyds Bank PLC 140 Camden High Street London NW1 0NG

M&G Investments

10 Fenchurch Avenue London EC3M 5AG

AUDITORS

LEGACY ADVISER Blake Morgan LLP Seacourt Tower West Way Oxford OX2 0FB

Handelsbanken Moore Kingston Smith LLP 2nd Floor Devonshire House 6A Hampstead High Street 60 Goswell Road London NW3 1PR London EC1M 7AD

INVESTMENT MANAGERS

Cazenove Capital Management 1 London Wall Place London EC2Y 5AU

SOLICITORS

Withers LLP 20 Old Bailey London EC4M 7AN

OUR SUPPORTERS

THANK YOU

We are immensely grateful to everyone who has supported us during such a challenging year for our local hospitals. Our supporters have been there for staff and patients across the Royal Free London when they needed it most. Our special thanks to:

Residents Association volunteers and members

• The Royal Free Hospital Kidney Patients Association : Nii Plange, Chair RFHKPA, David Myers BEM, Life-President RFHKPA, & RFHKPA trustees

Our sincere thanks also go to those who contributed so much to support our frontline heroes during the COVID crisis, including: • Feed the Frontline, under the leadership of Amanda Rudman & Kon Asimacopoulos

The Times

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royalfreecharity.org

@RoyalFreeChty /RoyalFreeCharity info@royalfreecharity.org

Charity number 1165672 Company registration no: 09987907

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