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2023-03-31-accounts

ANNUAL REPOR I + ACCOUN I S 2022-2023 O'fAL fRII ITY

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Pete Landstrom, chief executive of the Royal Free London NHS Foundation Trust (RFL).

THE FUTURE AND NOW

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Gillian Smith, chief medical officer, RFL.

ROYAL FREE CHARITY ANNUAL REPORT + ACCOUNTS 2022-2023

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About us 5
The future and now: 7
for cancer patients
The future and now: 11
for patients and hospital staf
The future and now: 17
for researchers
Highlights of our year 20
A message from our chair and ceo25
How we did it 29
Looking ahead to 2023-24 37
Trustees' report 39
Financial commentary 41
Financial summary 44
Statement of trustees' 48
responsibilities
Structure, governance and 49
management
Independent auditor's report 52
Statement of fnancial activities 55
Balance sheet 56
Cashfow 57
Notes to the accounts 58
Our trustees 72
Thank you
Inside back cover

During the year, our 14 therapy dogs (including Dylan, below) had more than 1,000 interactions with patients, visitors and hospital staff, providing a much-needed boost.

“The positive impact that the charity’s therapy dog visits have on both patients and staff is a joy to witness. These wonderful interactions bring great meaning to a much-loved service.” Matilda Patterson, clinical dementia specialist

THE FUTURE AND NOW

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The Royal Free Charity wants everyone who uses Barnet, Chase Farm and the Royal Free hospitals to receive the very best healthcare, delivered by a thriving workforce and underpinned by medical research that has global impact.

We support our NHS colleagues, their patients and their carers, as well as researchers, with everything from huge investments that help bring discoveries and innovations to the bedside faster, to small acts of kindness here and now which enrich the experience of patients and staff.

After a young surgeon, William Marsden, nearly 200 years ago, couldn’t find anyone to care for a woman he

found dying in the street, he inspired a group of philanthropists to help him change what they saw around them. The Royal Free Hospital was born, leading eventually to the group of hospitals we have today. Similarly imbued with a sense of impatience on behalf of patients are our 21st-century supporters who want better care for those in their local hospitals now.

Never has the NHS needed their help more. The charity’s top priority is to ensure we understand the needs of our hospitals and their staff so well that we can ensure our donors’ and fundraisers’ generosity has the most impact on patients, on hospital staff and on pump-priming research that will one day help patients worldwide.

Follow Dylan by flicking through the page corners...

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‘The most significant advances in improving outcomes for patients with cancer will be by diagnosing more people at an earlier stage. The Royal Free Charity and its supporters are helping us do that.’ Prof Derralynn Hughes, clinical director, research and innovation at the RFL and professor of experimental haematology, UCL

Forecasts of the number of patients expected to need cancer treatment in the coming years have exposed a gap in provision that the charity is committed to tackling through significantly increased future fundraising.

We want to help our hospitals improve access to their services, improve outcomes and the experience of patients and do more research into cures and new treatments. Greater access to clinical trials will be key to this.

This will mean redoubling our efforts in fundraising, but we were hugely encouraged by the success of our winter 2022 appeal, which raised £437,000 for new projects to support cancer patients. These will:

chemotherapy sessions by transporting patients to a virtual reality using charityfunded headsets

The charity will now be able to fund London’s first one-stop NHS lung cancer diagnostic service, based at the Royal Free Hospital.

The thoracoscopy service will mean that patients with fluid on their lung can be diagnosed and receive initial treatment the same day so that if they subsequently need oncology treatment, they are fitter and stronger when it starts. And Barnet residents’ response to the appeal means the charity will also fund the expansion of a contrast-enhanced digital mammography service at Barnet Hospital so that people with suspected breast cancer can be diagnosed more quickly and accurately.

Dr Besma Musaddaq, consultant breast radiologist, said: “Younger women in particular tend to have dense breasts and that can obscure cancers. If we give contrast enhanced mammography to these patients, that cancer will light up in the midst of a dense breast, increasing the likelihood that it will be picked up.”

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As well as preparing for the future, we continue to provide significant support for cancer patients today.

This year we launched what is considered the first charity-provided scar tissue massage service for NHS patients, including those who have had cancer surgery. Research shows this form of massage can reduce pain, increase movement and promote healing.

We have helped improve how hospital staff communicate with cancer patients with a £10,000 grant for an award-winning training module called Let’s Talk Cancer.

And we continue to support cancer research, investing a total of £1.85 million in cancer research during the year.

Katy's story

We couldn’t do it without generous supporters like Katy Vincent, a Royal Engineers’ officer, who ran 26 miles in full army kit to raise funds in memory of her 30-year-old best friend, Miranda Filmer. Miranda died last summer, five years after she was diagnosed with neuroendocrine cancer, one of the RFL specialist services. Katy’s “Mirandathon” – from her childhood home to Miranda’s home – raised nearly £6,000 for research into the disease. “There isn’t a day that goes by when I don’t think about Miranda’s courageous battle, surviving way beyond the odds and living for what and who she loved,” said Katy.

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‘I felt held and pampered, valued as a human being. The healing power of touch cannot be over emphasised. My frozen shoulder was better and all the tension melted away.’

A patient after a session with our complementary therapy team

The charity’s services and grants have created a package of support for patients and staff that includes psychological support, welfare and benefits advice, stress and symptom-relieving complementary therapy and training and development.

Direct support

The services provided by the charity for patients help them navigate the complex hospital environment, ease the stresses of their treatment and provide advice and guidance in sometimes very challenging circumstances made worse by their health concerns.

Over the past year we’ve had 403 volunteers across all three hospitals and satellite sites who have collectively volunteered over 27,000 hours.

been supported by a specially-trained volunteer dementia companion.

Our volunteers and pet therapy dogs make a huge contribution to the efficiency of our hospitals, their ability to innovate and to patients’ welfare. They work in 20 different roles from the practical to the pastoral, from the everyday to the unusual.

While much of their support is traditionally associated with NHS volunteering - helping patients to get to their appointments in a timely manner, providing mealtime help to patients and running a daily trolley shop service – many roles have been designed to meet a specific

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need highlighted by RFL staff and are unique to our charity. These roles now include:

During the year, our complementary therapy team delivered 11,000 massage treatments for patients and hospital staff, achieving outstandingly positive feedback – the comment above is one of many.

New therapies were introduced during the year: acupuncture and specialist massage of scar tissue – thought to be the first time this has been offered by a charity in an NHS hospital. Like all our services, they are aligned with the hospitals’ clinical and infection prevention and control policies.

‘The changing rooms are clean and the showers hot. The gym is great, bright and welcoming... my favourite gym!' Member of the Rec Club

THE FUTURE AND NOW

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Our support hub, on the lower ground floor of the Royal Free Hospital, supported nearly 500 patients with long-term conditions during the year with the following services:

Welfare rights advice about financial and housing problems, preventing homelessness, supporting people to find better accommodation and with housing repairs.

Benefit applications and appeals supported by hub staff yielded £327,000 for those entitled to these benefits but who were struggling with the processes while also coping with their illness. Patients were also helped to secure blue badges, taxi cards, warm-home discounts and grants from other charities.

For the first time, hospital staff were supported by the hub in a three-month pilot project, and it’s hoped that in the coming year funding will be secured to continue this service.

Amputee support group : Patients who have required an amputation as part of their treatment took part in support group sessions, arranged in partnership with the Limbless Association, and isolated patients were befriended with our “check in and chat” service. A major project for the coming year is to set up a second support hub at Barnet Hospital.

Rec Club

The Royal Free Charity Recreation Club offers affordable facilities aimed at improving the fitness and wellbeing of

hospital staff and the local community with its well-equipped gym, pool, classes and room hire.

This year closer links were developed with the RFL’s cardiology and pain management services who now run clinics in our studios during quieter times, complementing similar arrangements already in place with the physiotherapy and neurophysiology teams.

The year saw an increase in memberships and we hope our work to engage schools will continue this trend. We also planned a new website and discussed ways to continue upgrading our facilities so we can further improve our offer.

When Rodney was told he would need a liver transplant, to help him cope, he was referred to the charity’s checkin-and chat programme. “At first, I thought: ‘What’s the point - I’ve got a psychiatrist, I don’t need this.’ But actually it was great. They [the volunteers] talk to you on your level. They’re not a doctor, or a psychologist; someone to listen to you. It helps that you don’t know them either - it’s actually easier than talking to a friend in a way.

Rodney's story

“The support hub also helped me through their welfare rights advice service, [helping me apply] for a benefit as I’m no longer able to work. I didn’t want to apply, but my advisor encouraged me that it was ok.”

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Dean's A £4,500 grant made to the RFL’s LGBTQ+ staff network story for a training programme brought better support for colleagues and patients.

Dean Rigg, LGBTQ+ network co-chair, said: “Despite making up a relatively small proportion of the population, lesbian, gay, bi,

Funding from the Royal Free Charity resulted in a package of mental health and

Carol's

story

wellbeing support for the RFL’s 11,000 staff , including psychological support with qualifi ed therapists and peer support through a mental health fi rst aid programme.

Training in mental health fi rst aid means peers can identify, understand and respond to colleagues who may be experiencing a mental health issue. Carol Menashy, mental health fi rst aider, led the rollout of the programme at our hospitals.

“Last year, we supported more than 500 colleagues with peer support. We listen with compassion and empathy and without judgement and we signpost them for support to the most appropriate professional rank or service. Having the

knowledge and confi dence that they look to the LGBTQ+ & Friends staff network for support with. This funding from the charity will allow us to design and deliver a bespoke internal training programme that has the experience of our own staff at its core.”

trans and queer people are disproportionately aff ected by mental health issues. They also have worse health outcomes and experiences of healthcare.

“While the trust already has equality and diversity training in place, there is a gap in some colleagues’

charity’s funding has made that crucial diff erence. It gives us time to reach those people who wouldn’t necessarily fi nd our service otherwise.”

and anxiety. During the year, more than 500 assessments and therapy sessions took place.

One member of staff said: “I truly believe without having this intervention I may have been off sick for a very long time and/or may have left the trust. I am very grateful for the easy access to this service and the quality of psychological support I received.”

Our grant to fund an occupational health psychology post has also helped staff who need fast psychological support with severe mental health challenges, often workrelated trauma, depression

THE FUTURE AND NOW

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Providing grants

Where we don’t supply services ourselves, our generous supporters enable us to make grants to enable RFL staff to do more than NHS funding can. During the year grants worth £1.7m were awarded and just a few of the projects funded were:

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•• ••

‘I have pledged a gift in my will to the Royal Free Charity, knowing that it will make a real difference in researching better understanding, treatments and a cure for scleroderma.’ Nicola, scleroderma patient

----- Start of picture text -----
Total research spend £6.95m
Total invested in £1.85m
cancer research
Active grants: 144
(including 42 research grants)
PhD students funded 31
Research grant applications 16
received last year, with 7 awarded
(success rate: 44%)
----- End of picture text -----

Why fund research?

Over the past three years, the charity has significantly stepped up support and funding for medical

research. We have already provided seed funding for the RFL’s clinical research facility, which has gone on to secure many millions in research funds to enable early-phase clinical research in healthy adults and patients with acute, complex, and long-term conditions. This purpose-built space is used to develop ground-breaking treatment for a broad range of medical conditions including cardiovascular, renal and liver disease as well as rare diseases and cancer. It also facilitates first-in-human drug trials, gene therapy and the development of novel medical devices and biomarkers.

A significant step forward during the year was our successful application to become an introductory member of the Association of Medical Research Charities (AMRC), which includes leading UK medical and health research charities.

Membership of the AMRC provides

reassurance to donors that the charity is held to a high standard of transparency and accountability and that the charity is committed to investing donor funds in responsible and ethical research.

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18 THE FUTURE AND NOW

Finding a new cancer treatment

A £10,000 grant from the charity enabled a team to better understand how a new treatment for pancreatic cancer works. Irreversible electroporation (IRE) destroys cancer cells using electrical pulses. Preliminary studies have suggested it is effective but until the team

understands exactly how it works, it can’t be made available to patients.

Professor Brian Davidson, consultant hepatobiliary and liver transplant surgeon, said: “This funding enabled us to explore uncharted territory,

shedding light on how IRE treatment attacks and kills cancer cells and how it works when combined with other treatments. We believe that this could pave the way for more targeted treatments for pancreatic cancer, meaning better outcomes for patients.”

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Pears Building – the inside story

About 40 people who live within walking distance of the Royal Free Charity’s Pears Building visited us for the fi rst time to hear how we’re bringing RFL clinicians, UCL scientists and patients closer together to fi nd new treatments and cures. Leading researchers at the UCL Institute of Immunity and Transplantation, based in the building, described research into COVID-19 immunity and the crucial part played by patients who take part in clinical trials. They also heard from an artist commissioned to produce artwork for the building.

Banknote hails Royal Free pioneer

National kidney cancer study

Scotland’s new polymer £100 banknote featuring a Royal Free medical pioneer brought a £120,000 windfall for our hospital staff and patients when an auction of banknotes with sought-after serial numbers was held to mark the new note entering circulation.

A research team funded by the charity to investigate if scans rather than surgery can be used to diagnose kidney cancer was awarded £250k to scale up the project in hospitals across the UK. Up to 30% of kidney tumours are benign so the project could have a major impact on patient care.

The new note shows medical pioneer and suff ragette Dr Flora Murray CBE, who trained as a doctor at the Royal Free Hospital – one of the fi rst women doctors in the country. In March 2023, a portrait in oils of Dr Murray, owned by the charity, was lent to a Scottish museum for an exhibition marking the centenary of her death.

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Her Majesty Queen Elizabeth 1926-2022

The year saw the country’s transition from the reign of HM Queen Elizabeth to HM King Charles and both were commemorated with trees in the Pears Building gardens. In 1978 Queen Elizabeth officially opened the Royal Free Hospital’s current site on Pond Street.

A first for massage

team

Our complementary therapists became the first charity-provided therapy team in the UK to offer scar tissue therapy to NHS outpatients. Rozalia and Kris now work with patients who have recently had surgery as part of their cancer treatment.

Rozalia said: “We often used to avoid scarred areas during a massage but now we have the professional level skills to help patients in a new way.” The therapy can increase circulation in the area, reduce itching, pain and numbness, soften the appearance and increase the range of movement.

Marsden Lecture

We were delighted to welcome to the annual Marsden Lecture Professor Sir Mike Richards, leading cancer care strategist, and Dr Liz O’Riordan, a former breast cancer surgeon and patient advocate.

Professor Sir Mike Richards CBE was the UK’s first national cancer director and later became the CQC’s first chief inspector of hospitals. He has led two major reviews for NHS England and last year was appointed chair of the UK National Screening Committee. Dr Liz O’Riordan had to leave her role after being diagnosed with stage 3 breast cancer.

Both spoke passionately about ways to improve cancer outcomes and the experience of cancer patients.

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National accolade

for Royal Free Charity volunteer

Training volunteers to care for patients with dementia, telephoning patients at risk of isolation and supporting biobank research are just three ways that Evelyn Blumenthal, Royal Free Charity volunteer, makes a difference. Her remarkable contribution to patients was rewarded with a prestigious national award for people who have shown exceptional dedication to their volunteering role. “I’m amazed and stunned. I never in a million years thought I would be the winner,” said Evelyn.

Ella's story

A massive thank you to Ella and her family for raising over £10,000 for the Starlight neonatal unit at Barnet Hospital. Ella Benezra was born at 26 weeks, weighing just 760 grams – 12 years later she chose to forgo her bat mitzvah gifts and instead ask for donations to the unit.

Wall-to-wall science

Updating the hospital's history

The Royal Free Charity also unveiled a series of panels in the patient accommodation at the top of the Pears Building. The six panels describe the research work of the UCL Institute of Immunity and Transplantation in the Pears Building and give details of research work underway to find future COVID-19 vaccines.

The history wall along the main ground floor corridor at the Royal Free Hospital was updated to include information on our hospitals’ response to the pandemic.

Funded by the Royal Free Charity, the final panel now includes details of the enormous selfsacrifice of RFL staff in order to care for patients during this most challenging of times, as well as the massive vaccination programme they ran to protect the community. “As wave after wave of the virus struck, [the staff} carried on, putting patients before themselves and their families,” says the panel.

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Helping scleroderma patients

A corner of Rome in

Hampstead

We awarded a grant of over £9,000 for a study on a national selfcare package for people with scleroderma with finger ulcers. The generosity of our supporters means hospital colleagues can co-design, with their patients, ways to improve care for these ulcers which are very painful, often take a long time to heal and can lead to complications that result in amputation or permanent tissue loss.

Final preparations were made for the opening of Mileto Caffè in the reception area of the Pears Building in Hampstead. Federica Federico, whose family had to close their cafè in Rome, has recreated it for local people, patients and hospital and charity staff, supplying coffee, made from beans she imports and roasts herself and authentic Italian food.

Above: Ben running the 2023 TCS London Marathon in memory of his father, Chris, who died from scleroderma.

Pond life in Pond Street

Helping to ease cancer patients’ stressful hospital waits was the idea behind the installation of a webcam at one of the ponds on Hampstead Heath.

“Pondcam” is set up at a pond which is a nature reserve rather than for swimming. The camera focuses in turn on various locations around the pond, allowing patients and staff to see live images of the many species of birds and other animals.

“Watching the water gently rippling away is so calming and therapeutic! I’ve watched a majestic swan glide around and I also watched a family of ducks just going about their everyday business. I think Pondcam is a wonderful idea.”

Oncology clinic patient

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As the immediate pressures of the pandemic on our three hospitals began to abate, it became clear that the NHS was facing the greatest challenge since its inception.

Industrial action, massive funding challenges, rising waiting lists - partly caused by the COVID backlog - major issues in primary and social care and the ageing population all reinforced the pressure on the health service here in north London and across the UK. Each affected the NHS’s ability to attract, support and retain staff, carry out research and offer the best care possible to our populations. NHS charities like ours – and their supporters – have never been more needed.

Crucial to being able to help most effectively is the close partnership we and our RFL colleagues have built, so that we can be sure the support we offer is exactly what’s needed for patients, staff and researchers. This means ensuring that we are at the table at the earliest stages of major developments as well as by the side of today’s patients and staff, helping them make progress further

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and faster than NHS funding can do alone. During the year we built on the experiences of the two pandemic years to further develop our resilience and flexibility. We delivered many important achievements including a high-profile cancer appeal and the recruitment of hundreds of new supporters. We received several awards for our sector-leading volunteer service and for the groundbreaking Pears Building.

‘We were able to support the RFL through an intensely difficult year for staff and patients alike, with major investments in research, staff wellbeing, patient experience and medical equipment.’

We continued to develop our unique

complementary therapies – including a new scar tissue massage service, a first in the country – as well as the services of our support hub, and

A permanent sculpture by David Rickard was installed in the atrium of the Pears Building during 2023. Synthesis (heavy chain) represents the underlying code that guides the creation of the human immune system.

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we welcomed new talent into the charity. This meant we were able to support the RFL through an intensely difficult year for staff and patients, with major investments in research, staff wellbeing, patient experience and medical equipment.

RFL is the largest provider of cancer services in the capital and we were delighted to make a number of high impact investments in cancer care and research, including purchasing the UK’s first Quadra PET-CT scanner, supporting improved breast cancer imaging technology and funding London’s first one-stop shop for lung cancer diagnosis.

None of this would be possible without the continued development of our people and processes or, of course, the enormous generosity of our donors and fundraisers, whose vision of a better future for patients and those delivering their care is as clear as our own.

Jon Spiers Chief Executive

Judy Dewinter Chair of Trustees

But our cancer ambitions don’t stop there. There is a critical gap in London’s cancer provision and we are working hand in glove with our RFL colleagues to ensure a joined-up, system-wide approach to meet the surge in demand expected over the next few years. A potential new cancer centre on the Royal Free Hospital site would be at the heart of a new network of care to improve the screening, early diagnosis and effective treatment of the disease across north London and beyond. All these services will benefit from their proximity to one another under one roof in Hampstead.

While working to improve the future for one group of patients, we will continue to ensure that we are in the right place now for all our patients. We will work to increase the visibility of charity volunteers and staff in our three hospitals - in particular, Barnet and Chase Farm hospitals - and will explore opportunities to help patients further afield, through our leadership of a community partnership across north central London.

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Finding the funds

Our supporters have demonstrated extraordinary generosity again this year, helping us raise more than £7 million to deliver critical support services and provide transformative grants for staff wellbeing, patient experience and groundbreaking research.

We have continued to raise our profile and visibility within our hospitals and local communities. A highlight was our major winter appeal during which we welcomed nearly 1,000 new supporters and raised £437,000 to support significant cancer projects. Challenge events have been more popular than ever, with our fantastic runners and cyclists proudly wearing our distinctive Royal Free Charity kit while raising vital funds and awareness.

In what was a challenging year for so many, we have also reviewed our fundraising programme to ensure we are focused on the areas that deliver the best value. In February 2023 we launched our new gifts-in-wills campaign aiming to increase legacy giving, and will shortly be introducing a volunteer

A workout in the Royal Free Charity Rec Club, behind the Royal Free Hospital, open to all.

ambassador programme to help us build further links with our local community. Our incredible supporters continue to do so much for us. To show our gratitude we are looking forward to unveiling a new recognition wall at the Royal Free and Barnet hospitals. In 2023 we will continue to shape further opportunities for philanthropists in our community to engage more deeply with our work and help us continue to go further, faster, for all.

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 a professional fundraising database.

The charity is registered with the Fundraising Regulator, contributes to its levy on fundraising charities and adheres to its code of practice and to Charity Commission guidelines. Trustees provide guidance and oversee our fundraising practices, upholding

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the Charity Commission’s fundraising principles:

1. Planning effectively.

2. Supervising our fundraisers.

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

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

5. Being open and accountable. 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 the best possible experience when they work with and support us.

Any failure to comply with fundraising standards would be reported to the Fundraising Regulator. There is guidance for the public about this on our website and we have an internal process. There have been no recorded failures to comply with fundraising standards in the past financial year. We are compliant with the 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.

Tribute Ted and George Rayment’s uncle, Tony, was a keen to an runner who completed two London marathons, so it uncle seemed a fitting tribute to raise money for the hospital that cared for him before he died from the skin cancer melanoma at the Royal Free Hospital.

George said: “Unfortunately, it continued to spread despite immunology and radiology treatment, and he spent a long time in hospital. He was cared for on the oncology ward by a

George Rayment, Free Charity t-shirt

team of nurses and carers Royal Free Charity to say who, as a family, we began thank you for the way the to know quite well. We both wonderful staff cared for wanted to support the Tony.”

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Supporting our own staff

Recruitment, staff training, coaching and mentoring were all important pieces of work during the year with significant targets that were met.

Customer service training: We successfully trained over 82% of our workforce in faceto-face customer service training, helping to ensure optimal relationships with our very varied stakeholders. We plan to develop other bespoke training in 2023/24.

Manager development: Our passport to management programme was launched, with all our department heads, and those they manage, invited to attend a two-day introduction to management training.

Coaching and mentoring: We successfully trained three mentors within the charity to work with staff as needed. In addition, heads of department and senior leaders were offered external coaching following their annual feedback and performance review. Our focus next year will be on widening our coaching and mentoring offering and encouraging uptake. We were delighted that 81% of staff took part in our annual staff survey and their views have helped us decide our plans for 2023/24. These include:

resources information system to speed up basic management processes.

Building on our work on equality, diversity and inclusion last year, we offered further detailed training for managers looking at how to manage in our diverse organisation. The highly positive feedback from this led to a plan to develop an equality, diversity and inclusion strategy in 2023/24.

Telling our stories

The communications and engagement team works closely with our fundraising colleagues to retain our existing supporters and find more. We do this by explaining how our services and grants help patients and staff at our hospitals and by sharing the amazing stories of our fundraisers who take on all sorts of challenges to raise money for them.

Thanks to a new way for people to sign up to our communications via our hospitals’ wifi system, during the year we increased our new subscribers by an average of 5,000 a month. We hope our communications will inspire them to act when we ask for their support as part of the Royal Free family.

Next year we’ll be working with the fundraising team to create new ways for people to support our hospitals, whether in memory or in celebration of someone, or through fundraising in the community.

We’re also changing the way we tell those stories, using video as a medium much more

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34 ROYAL FREE CHARITY ANNUAL REPORT + ACCOUNTS 2022-2023
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than we have so far and expanding our social media activity to include TikTok.

There’ll be more focus on getting our stories into the news and we are commissioning a new website. This will give visitors a better, more personalised, experience.

Our design and communications advice helps support other teams to achieve their objectives. We tell new hospital staff about the charity at their induction sessions, giving them information about what we do and how they can help us to help them.

During the year we continued to build relationships with our neighbours by inviting them into the Pears Building to hear from the scientists about their research. We also heard their thoughts about a new art installation and a community cafe in the reception area of the Pears Building. And we unveiled plans for a webcam link from a pond on Hampstead Heath to patients and staff in the Royal Free Hospital.

design minimises the wastage of heated air. Other features include charging points for electric vehicles, a staff bike store and a brown roof and 12 bug hotels to provide wildlife habitats.

It is just as important that we are aware of the impact of what we do within the building, and in our wider activities.

Each year the worldwide web uses more electricity than the UK and is responsible for more emissions than the world’s airline industry. This year we commissioned a website that will reduce browsing time by optimising content, searching and other aspects of user experience, reducing its environmental impact.

We make funds available to our three hospitals following successful grant applications from RFL staff. The application form includes a requirement for applicants to outline how they have considered the environmental impact of their project and any measures to mitigate this. If two applications are judged to be equal by the panel, further weight will be given to the answer to this question.

Protecting the environment

The Royal Free Charity’s head office is in the Pears Building which was awarded a rating of “excellent” under the BREEAM scheme. This is the world’s leading assurance that a building is energy efficient, was built sustainably and enhances the wellbeing of those who live or work in it.

Potential overheating is controlled by the concrete outer walls and brise soleil shields on the windows, renewable energy is provided with almost no carbon emissions and the overall

During the year, we began a comprehensive review of our investments, including how we could improve our environmental and social impact. As a result, we have moved our equity investments into a pooled fund which excludes fossil fuel producers.

We are also looking for a way to re-use the coffee grounds generated by our new café, possibly as a garden fertiliser. In all parts of the building refuse containers separate recyclable waste.

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ʻOur NHS at 75ʼ Fujifilm photography award winner

A photograph taken by a member of our communications team won a national competition to mark the 75th anniversary of the NHS.

The picture, by Jenny Brodie, shows Paul, a patient at the Royal Free Hospital, having a haircut and shave at his bedside from Flo, a hairdresser funded by the Royal Free Charity. The winning entry was submitted in the partners category which celebrates the crucial role partnerships play in delivering the best possible care for NHS patients.

Jenny said: “I think the image captures something that we often hear from patients about the services we provide: for a brief time, they aren’t defined by their illness or condition. For those few moments, they are simply themselves.”

THE FUTURE AND NOW

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The science of clinical care for patients never stands still and neither do our ambitions to improve the ways we support the patients and staff in our three hospitals. At the same time, there is so much we can do today.

Key to both is the strengthening partnership between the charity and our colleagues in the RFL so that we hear, early on, about the problems we can help them solve. This ensures that we spend our supporters’ funds in ways which will help most.

The next year will see us:

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37

I RUS I Els, RIPOR I

Yusuf Firat, director of finance, property and operations

Like all organisations, the charity felt the economic pressures facing the country but the year saw significant progress in our work to increase our resilience and maximise our support for patients and staff in our three hospitals.

Voluntary income fundraising has been challenging with the tough economic climate making it difficult to improve income from donations and legacies. However, income from investment holdings and property operations showed a marked improvement compared with the previous year and provided us with more unrestricted funds. These are funds that can be used in the most effective way for the greatest number of patients and hospital staff rather than committed to a particular project which may benefit only some.

Recruitment of new staff has been difficult and has affected our ability to implement the charity’s fundraising strategy effectively; this situation is not likely to improve in the near future. Retaining and developing our staff as well as attracting new talent continues to be a key priority.

In March 2023, the Royal Free London NHS Foundation Trust (RFL) granted £12 million of restricted funding to the charity, which it had received in addition to its annual budget, enabling the charity to make strategic investments to improve patient care. As the RFL’s strategic delivery partner, the charity is uniquely placed to achieve maximum value for patients and hospital staff from this grant. We can leverage further funding from other sources and plan spend across successive years, rather than having to deploy funds within a single annual budget cycle, which the NHS has to do.

Two of our properties are now bringing in regular income – the Pears Building in Hampstead, which we built as the new home for UCL’s Institute of Immunity and Transplantation, and Graseby House, our residential and office accommodation used by Barnet Hospital staff.

The Pears Building includes two floors of patient accommodation, which is well occupied during the week, and after a long search for the right provider, we were able to start planning the opening of the Mileto

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39

Caffè in the building’s reception area. This will add modestly to our income and provide a much-needed community hub connecting local residents with the incredible science going on in the Pears Building.

We continued to make structural changes to further increase our sustainability, recruiting staff, establishing new processes and upgrading existing ones where needed. We have also reviewed our financial arrangements to ensure best value for our donors, fundraisers and the RFL Trust. Our plans to enhance processes and increase efficiency further include replacing our financial system.

A review of our cost base enabled us to make savings in areas including insurance, utilities and legal and professional fees. We plan to implement a procurement strategy and make continuous improvements to our internal processes.

We conducted an investment review to ensure the charity’s financial investments were managed effectively for the best returns within the parameters of responsible investment, taking account of our environmental and social governance objectives.

There is no doubt that the current economic stresses will be with us for some time. But we will continue to prioritise our financial resilience to ensure that every penny entrusted to us by our donors is spent as they would wish.

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Financial commentary

This year saw the Pears Building become fully operational with the charity’s wholly-owned subsidiary, RFC Enterprises Ltd, overseeing all service charges and utilities relating to running the building. RFC Enterprises Ltd also manages the Pears Building patient accommodation with a bookings contract managed by the RFL, through RFL Property Services Ltd.

The charity was delighted to bring on board Mileto Caffé, which opened to the public and Pears Building tenants and guests on 27 April 2023. The café provides a wonderful community hub both for the immediate residents such as UCL, hospital staff, the charity staff and patient guests, as well as the local community.

Our accommodation serves as a great alternative to other local overnight accommodation for hospital patients and their loved ones. Occupancy rates have increased during the year from 38%-40% to nearly 70%. Sunday to Thursday evenings see a near 100% occupancy and we are working on improving the occupancy rates for weekends.

The accommodation has also been successful in financial terms with annual turnover projections in the region of £800k. Any distributable profits generated by RFC Enterprises are gifted to

the charity. Unfortunately, as we anticipated in its first year of operations, RFC Enterprises recorded operational losses due to mobilisation costs and initially lower accommodation occupancy.

The Pears Building is a mixed motive investment asset with significant social investment value. As such, given that there is only a peppercorn rent from UCL and the RFL for areas leased to the two tenants, the social investment value of the building is in the region of £1.1m a year. This is a great demonstration of the charity using its funds for its charitable objectives. This social investment value is shown under the ‘charitable expenditure’ line in the statement of financial activities.

Graseby House is our second mixed motive investment and offers office space on its ground floor for hospital administrative staff and much-needed affordable residential units for keyworkers at Barnet Hospital on its upper floors. The accommodation comprises 63 residential units and this year demand for this high-quality accommodation has been very high, averaging over 99%. The building is managed and maintained by RFL Property Services, who also manage accommodation bookings and short-term tenancies. The building

generated around £665k income from the ground floor lease and residential unit rents for the year.

The Armoury on Pond Street is a pure investment building, leased to the Jubilee Hall Trust, a charity with similar objectives to the Royal Free Charity. The building is leased on a full repairing lease, which was renegotiated during this financial year and renewed with an extended period covering 16 years from March 2023.

Our investment in fundraising has shown encouraging results with voluntary income raising £3.85m, 50% of which was unrestricted. This is a very heartening development as the charity’s fundraising strategy has been focused on improving unrestricted income and we are also pleased to see positive developments in restricted and designated income generation. The charity sector more broadly is suffering from staff recruitment and retention issues and unfortunately the charity is not immune from this challenge. Our recruitment drive has not been able to deliver on the number of posts we planned for and this is anticipated to continue into the next financial year.

The charity received two major grants during the year: a £12m restricted grant from the RFL and a £3.5m restricted grant from

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41

UCL to support the National Amyloidosis Centre at the Royal Free Hospital.

Our investment holdings, totalling £19.5m as at 31 March 2023, recorded a total loss of £789k during the year. This represents a loss of over 5% in value compared to the beginning of the financial year. An investment review is underway and this is expected to set a fresh strategy, incorporating improved environmental and social governance considerations and a variation in asset allocation to improve expectations for the

charity’s investment returns, including significant cash receipts of grant income.

The total annual income of the group was £25.1m (2021/22: £25.3m), while operating income, excluding investment income, was £23.2m (2021/22: £24.1m).

The charity launched our cancer appeal in autumn 2022 to meet the urgent needs of cancer patients and staff across our hospitals. The response to the appeal was excellent and we were able to fund a range of high-impact projects in Barnet, Chase Farm and the Royal Free hospitals.

In March 2023, the charity received £12m of grant funding from the RFL to finance a series of strategic investments over the next two

years. The grant is recognised as restricted in the financial statements for the year and is included in the total income from donations and legacies of £19.4m (2021/22: £22m).

The charity’s other fully owned subsidiary, the RFC Recreation Club Ltd (“Rec Club”) continued to rebuild its membership following the pandemic. Following some senior staff changes, the recruitment situation is now stable. Further work is planned for 2023/24 including refurbishments of the swimming pool and changing rooms. The Rec Club generated £49k (2021/22: £96k) of profits for the year, which will be Gift Aided to the charity.

Income from investments of £1.9m (2021/22: £1.2m) reflects an increase in 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 markets due to the pandemic. The income also reflects the interest earned on cash deposits invested in short-term investments. There was a £789k loss on investments in the year (2021/22: £171k gain), represented by a £71k realised and £718k unrealised loss on financial investments.

The charity spent £16.7 million during the year on vital grants and

to provide its own sector-leading 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 objectives are included earlier in the annual report.

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Reserves

The charity’s reserves 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.

The charity holds three main categories of reserves:

A target level and minimum level of unrestricted free reserves have been established to ensure the charity has adequate funds to operate, allowing for unexpected events. In line with accounting standards for the sector, free reserves are calculated based on general funds, adjusted for fixed assets excluding pure investment properties, and are compared against the minimum reserves requirement stipulated by the policy.

The free reserves at the yearend were negative £5.2m (2021/22: negative £3.1m). This movement in the free reserves position is attributed to negative movements in the charity’s investment holdings due to adverse market conditions, transfer between funds and the deficit on income and expenditure for the year. The charity has had negative free reserves since 2020, primarily driven by three separate challenges posed by the pandemic:

1. Very challenging financial investment performance as a result not only of the pandemic but also the war in Ukraine.

2. The immense impact on the NHS and the consequential need for the charity to increase our support for our beneficiaries.

3. Additional capital required to complete the Pears Building following unavoidable cost overruns.

This position of negative free reserves does not pose liquidity or solvency issues and is considered to be temporary due to a combination of maximising unrestricted fundraising income, increasing commercial returns and controlling expenditure in a way that does not impinge on our charitable mission.

The charity’s finances will in time also benefit from unrestricted income derived from its investment holdings. A new strategy to work on building up our free reserves will enable the charity to return to a position of positive free reserves in the medium term in line with the 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 2022/23 net operating costs of £5.1m (2021/22: £5.2m), these equate to £2.6m and £1.7m respectively (see note 4 on p62). The plan outlined above will enable us to comply with this policy.

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Income for the year totalled £25.1 million (£13.1m plus restricted grant of £12m from RFL). This was split between donations, legacies, financial and property investments, other trading, property operations and event activities.

Donations: capital appeal

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

Donations: other

Voluntary gifts and donations received either directly by the charity or through medical departments in the RFL, from individuals, corporations, charities and charitable trusts and foundations. It includes a £12m

grant received for various patient projects, with a specific focus on cancer.

Events

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

Breakdown of total income (£'000)

----- Start of picture text -----
Property Investments
£1,889 (15%)
----- End of picture text -----

Other

£925 (7%)

Events £437 (3%)

Trading

£443 (3%)

Financial Investments 1,889 (15%)

----- Start of picture text -----
£13.1m []
----- End of picture text -----*

Total income 40.9% increase on 2021-22

Legacies £1,193 (9%)

Donations £6,314 (48%)

*** Excludes £12m grant income from RFL**

such as the London Marathon and the Vitality London Half Marathon to raise money for the charity.

Property investments

This predominantly 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.

Property operations

This relates to operational activity from our subsidiary enterprises and includes the management of the Pears Building.

Legacies

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

Other

Other trading

Income generated from, among other things, training courses run by various hospital departments to further the charitable activities within the department concerned.

Income from our subsidiary, the 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.

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Expenditure for the year was £22.4 million. Expenditure is split across the four key areas of our work: patient welfare and facilities, staff training and development, research and medical equipment as well as fundraising, trading and investment management.

Breakdown of expenditure (£'000)

----- Start of picture text -----
Investments and property Patient welfare and facilities
management 2,275 (10%) Staff training
£2,868 (13%)
development
£866 (4%)
Trading
£395 (2%)
Fundraising
£2,416 (11%) £22.4m
!"#$"%Total spend
85.1% increase on
2021-22
Medical equipment Research
£6,607 (29%) 6,945 (31%)
----- End of picture text -----

Fundraising

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

much appreciated by patients at our three hospitals. The charity spent £2.3m on this area during the financial year.

a programme to enhance staff wellbeing. Total spend was £866,000.

Trading

Investment management

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

Medical equipment

Expenditure on medical equipment was £6.6m in 2022/23.

Patient welfare and facilities

This expenditure relates to grants to improve patient welfare and facilities and the costs of volunteer services, our support hub service and our massage team, all of whom provide services which are

Research

These grants support life-saving and life-changing medical research at our hospitals including the salaries of researchers, research equipment and associated research costs. We spent £6.9m on research.

Staff training and development

Many donations are given to benefit RFL staff and these are often used either to enable staff to attend training courses or to provide additional facilities for staff, including ‘Fit at the Free’,

These are the operating costs of the Recreation Club, which provides fitness and wellbeing services, and the final costs for the retail shop operations, which were wound up during the year 2020-21.

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Risks and risk management

1

The trustees recognise their duty to anticipate, manage and mitigate 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 achieving the charity’s objects. The trustees take a systematic approach to managing risk, with the executive team regularly monitoring and reporting risks to the board as well as prioritising actions. Risks are rated by multiplying a score for the likelihood of a risk by a score for its severity on a scale from 1-25. Scores before and after mitigation are calculated using a risk matrix. Risk areas with a pre-mitigation score of eight or above are reported to the trustees through committee and board governance structure.

The board considers

the following as the key risks for the organisation...

Fundraising: Impact on donors of economic downturn means the fundraising function fails to meet its financial targets and deliver satisfactory returns.

The trustees agreed to increase fundraising capacity and improve fundraising infrastructure during the year. The war in Ukraine, the cost-of-living crisis, recruitment of staff and major economic pressures have posed challenges for voluntary income fundraising. The board and the executive team continue to closely manage and monitor fundraising performance through in-year reporting against targets.

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3

2

Challenging recruitment market prevents us filling key roles

The impact of this risk is measured through implementation of critical projects, management time taken up with recruitment and excessive workload for staff covering gaps. The executive and the trustee board mitigated this risk by improving staff retention, using personal networks to find new talent, continuing our work towards becoming an employer of choice and improving organisational culture by promoting staff benefits and holding various all-staff events.

There is a recognition of the cost pressures created by escalating inflation and interest rates, and the impact of these on beneficiaries, staff and the charity itself. Staff pay is regularly reviewed and is addressed as part of budget-setting and budget management processes, taking into account the charity’s objectives, recruitment and retention costs and staff morale, high energy costs, high inflation and interest rates. Staff pay is under review and this will be addressed as part of the budgetsetting process, taking into account the charity’s objectives, recruitment and retention costs and staff morale.

Negative unrestricted ("free") reserves

The trustee board has focused on eliminating the charity’s ‘negative’ free reserves position and the financial strategy is aimed at ensuring at the very least a balanced operational income and expenditure account in future.

At worst, this risk would mean the charity was unable to meet current financial commitments and to support the RFL with future needs. This could lead to the trust’s disillusionment with the charity and affect our reputation with donors, leading to a drop in income.

Free reserves are a key metric regularly reported to the board and the finance, investment and audit committee and have also been the main driver for the financial strategy. In addition to a number of policy reviews such as asset classification, the levy applied to certain funds for administrative and management fees, a review of historical restricted funds and use of the charity’s asset holdings to generate additional unrestricted income, the charity has reviewed its investment strategy and will implement the recommendations during 2023/24. Furthermore,

a review of the cost base will be undertaken as part of financial planning. This exercise is expected to provide savings of around £500,000, directly contributing to improving the free reserves position.

The trustees fully support the inclusion of freehold properties as part of free reserves, as long as operationally the charity delivers a balanced income and expenditure performance. Financial planning continues to place an emphasis on generating more unrestricted and budgetrelieving income.

Trustees are confident that the charity’s unencumbered property holdings fully negate the negative free reserves position at the end of the financial year and the

measures in place for mitigating risks provide confidence in the charity’s future operations.

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Statement of trustees' responsibilities

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".

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 company and of the incoming resources and application of resources, including the income and expenditure of the company for that period. In preparing those financial statements, the trustees are required to:

which are explained in the financial statements;

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

Insofar as the trustees are aware:

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.

By order of the trustees

Judy Dewinter

Chair of Trustees

Valerie Jolliffe

Trustee and Chair of the Finance and Audit Committee

Date: 25 January 2024

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Structure, governance and management

Legal structure

On 1 April 2016, the Royal Free Charity reconstituted as an independent charity (no. 1165672), solely regulated by the Charity Commission and no longer subject to NHS legislation. This status establishes the charity’s independence from the Department of Health and, by virtue of becoming a company limited by guarantee (no 09987907), limits the trustees’ liability.

The charity operates under a Charity Commission scheme dated 1 April 2016 and its objects, as stated in its articles of

association, encompass not only the support of patients of the RFL, but also and more generally the promotion of health and medical research, particularly within the RFL catchment area.

Trustees

Following the reconstitution of the charity, new trustees are appointed by the trustee board after open competition. One trustees who was previously a trustee of the former NHS charity is now a trustee of the incorporated charity (Russell Brooks); in addition, the RFL has the right to appoint and remove one trustee. During the year Dr Chris Streather fulfilled this role and on his retirement as trustee, Dr Gillian Smith, group chief medical director at the RFL, was appointed as a charity

trustee (3 April 2023). 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 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 three sub-committees – people and governance, finance, investments and audit (supported by an investments sub-committee); and fundraising, grants and services committees – meet quarterly.

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.

Remuneration

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

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Public benefit statement

The Royal Free Charity’s purpose is to support the Royal Free London NHS Foundation Trust’s three hospitals - Barnet Hospital, Chase Farm Hospital and the Royal Free Hospital – as well as many satellite sites across north London. We focus our support on three groups:

● Patients and their families ,

whether local or from further away, needing to use the trust’s specialist services. We enhance the experience of patients throughout their hospital journey, through the services we provide directly and the projects and equipment we fund on the wards.

The public benefits that flow from our support for these three groups:

1. Patients

Evidence shows that improving the experience of patients leads to better patient safety and clinical outcomes and a better quality

of life, particularly for patients facing a poor prognosis; improves patient involvement in, and understanding of, their care; leads to fewer demands for unnecessary treatment; and can expose important system challenges, leading to improvement of care for all. See pages 11-15

2. NHS staff

Evidence shows that improving the experience of NHS staff leads to better retention of staff, crucial at a time of chronic staff shortages in the NHS; relieves long-term anxiety caused by work stresses; makes staff feel better prepared for the future; and improves patient outcomes and satisfaction. In addition, improvements to the working environment and the specialist equipment staff use encourage a more holistic approach to treatment, health and wellbeing, and improve morale. See pages 11-15

3. Researchers

Healthcare research can provide important information about different forms of treatment and outcomes, disease risk factors and trends, public health interventions and healthcare costs, among many other benefits to the public. Royal Free Charity funds primarily support two aspects of research – clinical trials and translational research. This takes laboratory discoveries and turns them into

treatments and interventions that directly benefit human health. The charity led the funding and construction of the Pears Building, a new home for the UCL Institute of Immunity and Transplantation, and supplied seed funding for the trust’s clinical research facility which last year secured state funding worth £5m. See pages 17-19

No harm arose from our work. Our beneficiaries were patients, NHS staff, the general public and locally-based community and voluntary organisations. No private benefit arose from these purposes.

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Reference and administrative detail

Financial statements

The audited consolidated financial statements comply with the Statement of Recommended Practice ‘Accounting and Reporting by Charities’ FRS 102 including Update Bulletin 2, the Charities Act 2011 and the Companies Act 2006.

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 14. 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

Governing document

The Royal Free Charity is governed by its articles of association dated 4 February 2016, reviewed and updated in January 2023.

Company number

09987907 in England and Wales

Charity number

1165672 in England and Wales

Registered office

Royal Free Charity Pears Building London NW3 2PP

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Independent auditor's report to the members of the Royal Free Charity

Opinion

We have audited the financial statements of the Royal Free Charity for the year-ended 31 March 2023 which comprise the consolidated statement of financial activities, the comparative statement of financial activity, the consolidated and company balance sheets, the consolidated 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).

In our opinion, the financial statements:

Kingdom Generally Accepted Accounting Practice guidelines (UKGAAP);

Basis for opinion

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

believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion

Conclusions relating to

going concern

In auditing the financial

statements, we have concluded that the trustees’ use of the goingconcern basis of accounting in the preparation of the financial

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

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

Other information

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

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial

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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 this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of the knowledge

and understanding of the group and charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the directors’ report.

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

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 48, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial

statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial

statements, the trustees are responsible for assessing the group and charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going-concern and using the going concern basis of accounting unless the trustees either intend to liquidate the group and charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists.

Misstatements can arise from

fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these

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Independent auditors report to the trustees of the Royal Free Charity ʼ (continued)

financial statements.

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

We obtained an understanding of the legal and regulatory frameworks within which the group and charitable company operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006 and taxation legislation.

We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be income recognition with respect to events and legacies, ensuring recharges have been applied appropriately; the Pears Building being accounted for appropriately; and the override of controls by management. Our audit procedures to respond to these risks included testing of income on a sample basis,

recalculation of recharges on a sample basis, review of Pears Building accounting and enquiries of management about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals and reviewing accounting estimates for biases.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

These inherent limitations are particularly significant in the case of misstatement resulting from fraud as this may involve sophisticated schemes designed to avoid detection, including deliberate failure to record transactions, collusion or the provision of intentional misrepresentations.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.

uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

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

Alastair Lyon

(Senior Statutory Auditor)

For and on behalf of Crowe U.K. LLP Statutory Auditor Aquis House, 49-51 Blagrave Street, Reading, Berkshire, RG1 1PL

Date: 25 January 2024

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Consolidated statement of financial activities

Year ended 31 March 2023
Note
Unrestricted
Restricted
Total
funds
funds
2022/23
£000
£000
£000
Income and endowments from:
Donations and legacies
2
3,349
16,056
19,406
Charitable activities
101
101
Trading activities
Property operations
1,889
-
1,889
Other trading operations
443
-
443
Other
925
925
Investments
8.4
1,857
32
1,889
Other
Events
261
1
262
Other income
175
-
175
Total income
9,001
16,089
25,090
Expenditure on:
Raising funds
Fundraising expenditure
2,416
2,416
Trading expenditure
395
395
Investment/
2,868
2,868
property management
Charitable activities
3
8,168
8,525
16,693
Total expenditure
13,847
8,525
22,371
Net gains/(losses) on investments
8.6
(738)
(51)
(789)
Net income/(expenditure)
(5,584)
7,513
1,929
Transfers between funds
11
(574)
574
-
Gains on tangible fxed assets
-
-
-
Net movement in funds
(6,157)
8,086
1,929
Reconciliation of funds:
Total funds brought forward
86,786
19,866
106,653
Total funds carried forward
80,628
27,952
108,583		 Year ended 31 March 2023
Note
Unrestricted
Restricted
Total
funds
funds
2022/23
£000
£000
£000
Income and endowments from:
Donations and legacies
2
3,349
16,056
19,406
Charitable activities
101
101
Trading activities
Property operations
1,889
-
1,889
Other trading operations
443
-
443
Other
925
925
Investments
8.4
1,857
32
1,889
Other
Events
261
1
262
Other income
175
-
175
Total income
9,001
16,089
25,090
Expenditure on:
Raising funds
Fundraising expenditure
2,416
2,416
Trading expenditure
395
395
Investment/
2,868
2,868
property management
Charitable activities
3
8,168
8,525
16,693
Total expenditure
13,847
8,525
22,371
Net gains/(losses) on investments
8.6
(738)
(51)
(789)
Net income/(expenditure)
(5,584)
7,513
1,929
Transfers between funds
11
(574)
574
-
Gains on tangible fxed assets
-
-
-
Net movement in funds
(6,157)
8,086
1,929
Reconciliation of funds:
Total funds brought forward
86,786
19,866
106,653
Total funds carried forward
80,628
27,952
108,583		 Year ended 31 March 2023
Note
Unrestricted
Restricted
Total
funds
funds
2022/23
£000
£000
£000
Income and endowments from:
Donations and legacies
2
3,349
16,056
19,406
Charitable activities
101
101
Trading activities
Property operations
1,889
-
1,889
Other trading operations
443
-
443
Other
925
925
Investments
8.4
1,857
32
1,889
Other
Events
261
1
262
Other income
175
-
175
Total income
9,001
16,089
25,090
Expenditure on:
Raising funds
Fundraising expenditure
2,416
2,416
Trading expenditure
395
395
Investment/
2,868
2,868
property management
Charitable activities
3
8,168
8,525
16,693
Total expenditure
13,847
8,525
22,371
Net gains/(losses) on investments
8.6
(738)
(51)
(789)
Net income/(expenditure)
(5,584)
7,513
1,929
Transfers between funds
11
(574)
574
-
Gains on tangible fxed assets
-
-
-
Net movement in funds
(6,157)
8,086
1,929
Reconciliation of funds:
Total funds brought forward
86,786
19,866
106,653
Total funds carried forward
80,628
27,952
108,583		 Year ended 31 March 2022
Unrestricted
Restricted
Total
funds
funds
2021/22
£000
£000
£000
4,540
17,475
22,015
52
-
52
1,372
-
1,372
428
-
428
1,210
25
1,235
200
2
202
43
-
43
7,845
17,502
25,347
1,641
-
1,641
264
-
264
2,475
-
2,475
6,904
878
7,783
11,284
878
12,163
71
100
171
(3,369)
16,724
13,355
34,955
(34,955)
-
44
-
44
Note
Unrestricted
funds
£000
Income and endowments from:
Donations and legacies
2
3,349
Charitable activities
101
Trading activities
Property operations
1,889
Other trading operations
443
Other
925
Investments
8.4
1,857
Other
Events
261
Other income
175
Total income
9,001
Expenditure on:
Raising funds
Fundraising expenditure
2,416
Trading expenditure
395
Investment/
2,868
property management
Charitable activities
3
8,168
Total expenditure
13,847
Net gains/(losses) on investments
8.6
(738)
Net income/(expenditure)
(5,584)
Transfers between funds
11
(574)
Gains on tangible fxed assets
-
Net movement in funds
(6,157)
Reconciliation of funds:
Total funds brought forward
86,786
Total funds carried forward
80,628
16,089
25,090
2,416
395
2,868
8,525
16,693
8,525
22,371
(51)
(789)
7,513
1,929
574
-
-
-
8,086
1,929
19,866
106,653		 31,630
(18,231)
13,399
55,156
38,097
93,254
27,952
108,583		 86,786
19,866
106,653

The notes on pages 58-71 form part of these accounts

ROYAL FREE CHARITY ANNUAL REPORT + ACCOUNTS 2022-2023

55

Consolidated charity balance sheet

Group
March 2023
Note
£000
Fixed assets
Tangible assets
6
31,369
Investments
8
21,229
Social investments
8
41,872
Total fxed assets
94,470
Current assets
Debtors
9
19,908
Cash at bank and in hand
15,771
Total current assets
35,679
Creditors falling due within one year
10.1
(21,566)
Net current assets
14,112
Creditors falling due after more
10.2
-
than one year
Total net assets
108,583
Income funds
Unrestricted
11.1
80,630
Restricted
11.2
27,953
Total funds
108,583		 Charity
Group
Charity
March 2023
March 2022
March 2022
£000

£000
£000
31,359
30,976
32,377
21,368
16,963
17,102
41,872
42,478
43,913
94,599

90,416
93,392
20,764

4,888
6,373
15,550

26,516
25,875
36,314
31,404
32,248
(21,890)
(14,034)
(14,761)
14,424

17,370
17,487
-
(1,133)
(1,133)
109,023
106,653
109,746
81,070

86,787
89,879
27,953

19,866
19,866
109,023
106,653
109,746

The notes on pages 58-71 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.

Judy Dewinter Date: 25 January 2024 Chair of Trustees Valerie Jolliffe Trustee and Chair of the Finance and Audit Committee

Company registration no: 09987907

THE FUTURE AND NOW

56

Consolidated cash flow statement

Cash infow/(outfow) from operating activities 2022/23
£000		 2021/22
£000
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		 (6,527)
1,889
6,548
(11,603)
(1,042)
(10)
0
(4,218)		 13,639
1,235
1,438
(1,459)
(319)
(6)
(405)
484
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		 -
(10,745)
26,516
15,771		 -
14,123
12,393
26,516
Reconciliation of net income to cash fow from operating activities
2022/23
£000		 2021/22
£000
Net income/(expenditure) including endowments
Adjustments for:
Depreciation and amortisation charges
Net (gains)/losses on investments
Investment income
Loss on disposal of tangible fxed assets
(Increase)/decrease in debtors
Increase/(decrease) in creditors
Net cash provided by/
(used in) operating activities		 1,929
1,265
789
(1,889)
0
(15,020)
6,399
(6,527)		 13,355
84
(171)
(1,235)
0
(774)
2,380
13,639
Analysis of net cash 01 April 2022
Cashfows
£000
£000		 31 March 2023
£000
-
15,771
15,771
Short-term deposits
Cash at bank and in hand		 -
-
26,516
(10,745)
26,516
(10,745)

The notes on pages 58-71 form part of these accounts

ROYAL FREE CHARITY ANNUAL REPORT + ACCOUNTS 2022-2023

57

Notes to the accounts for the year ended 31 March 2023

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, therefore it also prepared its financial statements in accordance with the statement of recommended practice (SORP) 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 GBP 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 goingconcern basis and considered possible events due to conditions, including impact of rising inflation, interest rates and cost of living, that might significantly affect

the charity's ability to continue as a going concern. In making this assessment, for a period of at least a year from the date of approval of the financial statements, they considered the charity's financial plans, 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, the trustees believe that the charity has adequate resources to continue to operate and deliver on its objectives for the foreseeable future. It therefore adopts the going-concern basis in preparing its financial statements.

Estimates and judgements

Works of art are valued in the balance sheet at £361,000 (2021/22: £361,000), a figure which the trustees believe fairly reflects their value.

Investment properties are valued in the balance sheet at £1,401,000 (2021/22: £1,401,000), 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 (2021/22: £13,770,000), 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.

Financial instruments

The charity has applied the provisions of Section 11 "Basic Financial Instruments" of FRS 102 to all its financial instruments. They are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to offset the recognised amounts, and an intention to settle on a net basis, or to realise the assets and settle the liability simultaneously.

Apart from prepayments, deferred income and balances with HM Revenue & Customs under statute, all other debtor and creditor balances, as shown in notes 9 and 10, 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, RFC Enterprises Ltd, RFC Recreation Club Ltd and RFC Overage Ltd.

Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits

THE FUTURE AND NOW

58

Notes to the accounts for the year ended 31 March 2023 (continued)

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, such as cardiac or renal, or to a particular sphere of activity, for example research or equipment.

General funds may be used at the trustees' discretion for any general purpose of the charity.

Income

All income is included in full in the statement of financial activities as soon as the following three factors can be met:

(a) entitlement - arises when a particular resource is receivable or the charity's right becomes legally enforceable.

(b) probability - when it is probable that the incoming resources will be received.

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

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.

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 value of the cost to the donor or the fair value determined by the charity. The gifts are then directed to the relevant hospital department or ward. Total value of gifts in kind for 2022/23 was £nil (2021/22: £nil).

Expenditure

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.

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 2022/23, as in 2021/22, a direct charge was made to restricted and designated funds in recognition of the overhead and support costs relating to those funds. 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.

Grants

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

VAT and partial exemption

The charity is in a VAT group with its subsidiary RFC Enterprises Ltd. It is entitled to recover part of the net VAT incurred as a cost. The recovered proportion is small and changes from one accounting period to another, subject to the VAT status of income generated. The irrecoverable element of VAT is expensed through the statement of financial activities as a charge. Where the VAT is in relation to an asset, the irrecoverable VAT is capitalised along with the net amount of the asset cost.

ROYAL FREE CHARITY ANNUAL REPORT + ACCOUNTS 2022-2023

59

Notes to the accounts for the year ended 31 March 2023 (continued)

Investments

Investments are shown in the balance sheet at market value.

The investment property was valued in 2019/20 by Cluttons, chartered surveyors. The mixedmotive investment property was valued in 2020/21 by Montagu Evans, chartered surveyors. The trustees are satisfied that these valuations reflect the properties’ fair value.

Social investments

Programme-related investments relate to parts of the Pears Building leased to third parties that are used to help to fulfil the

charity's charitable objectives. The programme-related investments are held at cost.

Mixed-motive investments (MMI) relate to a property used to help to fulfil the charity's charitable objectives as well as generating investment return.

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 per table below).

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, then the carrying values are reviewed for impairment.

Properties held as pure investment or MMI, or properties held as pure investment, MMI or partially MMI, are not to be depreciated. The Armoury (pure investment property) and Graseby House (MMI) will not be depreciated. The Pears Building is amortised over

~~Asset type~~
~~Capitalisation threshold~~
~~Depreciation~~
Building - leasehold
£10,000
Lease period (eg Pears Building
50years)
Building- freehold
£10,000
100years(freehold)
Computer equipment
£2,500 individually or
3 years
exceeding£5,000 in aggregate
Computer systems development
£25,000 in aggregate
5years
Software
£25,000
5 years or expected life, if shorter
(purchased or developed)
Computer development
£2,500 individually or
5 years
exceeding£5,000 in aggregate
Recreation equipment
£1,000 individually or exceeding
5 years
£1,000 in aggregate
ShopEPOS system
£5,000
5years
Shopft-outs
£5,000
Lease term
Furniture and fttings
£2,500 individually or exceeding
5 years
£5,000 in aggregate
Asset under construction
Cost
Not depreciated
Works of art
Market value
Not depreciated		 ~~Asset type~~
~~Capitalisation threshold~~
~~Depreciation~~
Building - leasehold
£10,000
Lease period (eg Pears Building
50years)
Building- freehold
£10,000
100years(freehold)
Computer equipment
£2,500 individually or
3 years
exceeding£5,000 in aggregate
Computer systems development
£25,000 in aggregate
5years
Software
£25,000
5 years or expected life, if shorter
(purchased or developed)
Computer development
£2,500 individually or
5 years
exceeding£5,000 in aggregate
Recreation equipment
£1,000 individually or exceeding
5 years
£1,000 in aggregate
ShopEPOS system
£5,000
5years
Shopft-outs
£5,000
Lease term
Furniture and fttings
£2,500 individually or exceeding
5 years
£5,000 in aggregate
Asset under construction
Cost
Not depreciated
Works of art
Market value
Not depreciated
Building- freehold £10,000
Computer equipment £2,500 individually or
exceeding£5,000 in aggregate
Computer systems development £25,000 in aggregate
Software
(purchased or developed)		 £25,000
Computer development £2,500 individually or
exceeding£5,000 in aggregate
Recreation equipment £1,000 individually or exceeding
£1,000 in aggregate
ShopEPOS system
 £5,000
Shopft-outs
 £5,000
Furniture and fttings £2,500 individually or exceeding
£5,000 in aggregate
Asset under construction Cost
Works of art Market value

THE FUTURE AND NOW

60

Notes to the accounts for the year ended 31 March 2023 (continued)

its lease period and the charge to the statement of financial activities is classed as charitable expenditure with the exception of the depreciation charge relating to the charity office space, which is expensed as part of support service costs.

All intercompany profits levied on the construction of the Pears Building have been written off and charged to the statement of financial activities in the year (£2.9m).

Leasehold – Pears Building

The Pears Building is classified as social investment for all areas occupied by (and shared with) other entities, which are UCL, the charity, the NHS trust and RFLPS.

as the difference between market value at the year end and opening market value (or date of purchase if later).

Pooling scheme

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.

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 was a defined contribution scheme.

Operating lease

Rentals paid under operating leases are charged to the statement of financial activities or the profit and loss account (depending on the relevant legal entity), evenly over the period of the lease.

Pension costs

Freehold property

Freehold property and part of a freehold property that is in operational use and not a pure investment nor MMI would be depreciated over 100 years.

Realised gains and losses

Gains and losses are reported in the statement of financial activities as they arise. Realised gains and losses on investments are calculated as the difference between sale proceeds and opening market values (or date of purchase if later). Unrealised gains and losses are calculated

Staff who were formerly employed by the Royal Free Hampstead NHS Trust (the 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 to which the employer's contribution matches that of the employee up to a maximum of 9%. Staff of the charity's trading subsidiary, RFC Recreation Club Ltd, also participate in personal pension schemes.

ROYAL FREE CHARITY ANNUAL REPORT + ACCOUNTS 2022-2023

61

Notes to the accounts for the year ended 31 March 2023 (continued)

2 Donations and legacies

Unrestricted
Restricted
Total
funds
funds
2022/23
£000
£000
£000
Donations – capital appeal
0
0
0
capital appeal
Donations
2,342
15,871
18,213
Lagacies
1,007
186
1,193
Total
3,349
16,056
19,406
3 Charitable expenditure
Grants
Activities
Social
Support
Total
expenditure undertaken investment
costs
2022/23
directly
costs
£000
£000
£000
£000
£000
Patient welfare
198
863
606
609
2,275
and facilities
Staf training and 111
392
363
866
development
Research
992
4,539
494
920
6,945
Medical
6,006
532
68
6,607
equipment
Total
7,308
6,326
1,100
1,960
16,693		 Unrestricted
Restricted
Total
funds
funds
2021/22
£000
£000
£000

0
150
150

3,167
17,322
20,489

1,373
3
1,376

4,540
17,475
22,015
Grant
Acitivities
Social
Support
Total
expenditure undertaken investment
costs
2021/22
directly
costs
£000
£000
£000
£000
£000

983
1,165
0
269
2,417
686
596
0
160
1,442
2,275
971
0
406
3,653
241
0
0
30
271
4,185
2,732
0
866
7,783

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

4 Analysis of support costs by activity

Governance
Raising Charitable
Total
funds
activities
2022/23
£000
£000
£000
£000
Salaries – charity
20
1,668
701
2,389
Salaries – trading subsidiary
0
234
0
234
Investment/
0
2,868
81
2,949
property manangement
Other trading subsidiary costs
0
161
0
161
Charity trading costs
0
0
0
0
Statutory auditor's renumeration 39
0
0
39
Legal and other professional fees 7
135
20
163
Event and marketing costs
0
74
4
78
Consultancy/recruitment services 0
34
30
64
Publicity materials
0
238
0
238
Capital appeal costs
0
37
24
61
Others
3
231
1,030
1,264
Total support costs
70
5,679
1,890
7,639
Governance costs reallocated
(70)
70
Total support costs
0
5,679
1,960
7,639		 Governance
Raising Charitable
Total
funds
activities
2021/22
£000
£000
£000
£000

17
1,425
599
2,041
0
199
0
199
0
2,475
70
2,545
0
151
0
151
0
(86)
0
(86)
37
0
0
37
11
199
30
240
0
61
3
64
0
23
20
43
0
196
0
196
0
3
2
5
0
(266)
77
(189)
65
4,380
801
5,246
(65)
65
0
4,380
866
5,246

"The 5% mark up, applied by the charity's subsidiary to the construction of the Pears Building, has been expensed in this financial year and is included within the 'Others' line above." These costs are initially 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 2022/23, this charge was £395,495 (2021/22: £233,608).

THE FUTURE AND NOW

62

4.1 Analysis of staf costs
Charity
Subsidiary
Total
2022/23
£000
£000
£000		 4.1 Analysis of staf costs
Charity
Subsidiary
Total
2022/23
£000
£000
£000		 Charity
Subsidiary
Total
2021/22
£000
£000
£000
Salaries and wages
Social security costs
Other pension costs
Total
No employee of any subsidiary co
The number of such
employees of the charity
were:
Pension contributions
were made for these
employees as follows:		 2,600
203
2,803
285
18
303
135
13
148
3,020
234
3,254
mpany received emoluments exceeding £60,000.
2022/23
2021/22
£60,001-£70,000
8
2
£70,001-£80,000
-
1
£80,001-£90,000
2
1
£90,001-£100,000
-
-
£100,001-£110,000
2
1
£110,001-£120,000
1
1
£000
£000
£60,001-£70,000
27
8
£70,001-£80,000
-
3
£80,001-£90,000
7
3
£90,001-£100,000
-
-
£100,001-£110,000
13
4
£110,001-£120,000
11
10		 2,322
173
2,495
254
15
269
132
11
143
2,708
199
2,907

There was an average monthly number of 70 staff in 2022/23 (2021/22: 68). The RFC Recreation Club Ltd had an average number of 8 staff (2021/22: 8), and RFC Developments Ltd did not employ any staff. The key management personnel during the year were Jon Spiers, chief executive; Robin Meltzer, deputy chief executive and director of engagement and communications; Yusuf Firat, director of finance, property and operations; Sharron Grant, director of HR; Alison Kira, director of grants and services; Paul Stein, executive director of fundraising and communications; Jenny Todd and Laura James, assistant director of grants and services. The total salary cost of the key management personnel (including social security and employer pension costs) was £747,651 (2021/22: £756,000). During the year, the charity made total termination payments of £40,126 (2021/22: £51,000)

5 Analysis of net assets between funds

5 Analysis of net assets between funds 5 Analysis of net assets between funds
Group
Unrestricted
Restricted
Total
funds
funds
2022/23
£000
£000
£000		 Unrestricted
Restricted
Total
funds
funds
2021/22
£000
£000
£000
Fixed assets
Investment
Current assets
Liabilities
Long-term liabilities
Charity
 31,369
31,369
61,035
2,066
63,101
9,792
25,887
35,679
(21,566)
(21,566)
-
80,630
27,953
108,583
Unrestricted
Restricted
Total
Funds
Funds
2022/23
£000
£000
£000		 30,975
0
30,975
57,239
2,202
59,441
13,592
17,812
31,404
(13,885)
(149)
(14,034)
(1,133)
-
(1,133)
86,788
19,865
106,653
Unrestricted
Restricted
Total
Funds
Funds
2021/22
£000
£000
£000
Tangible fxed assets
Investments
Current assets
Short-term liabilities
Long-term liabilities		 31,359
-
31,359
61,174
2,066
63,240
10,427
25,887
36,314
(21,890)
-
(21,890)
-
81,070
27,953
109,023		 32,377
0
32,377
58,813
2,202
61,015
14,436
17,812
32,248
(14,612)
(149)
(14,761)
(1,133)
-
(1,133)
89,881
19,865
109,746

ROYAL FREE CHARITY ANNUAL REPORT + ACCOUNTS 2022-2023

63

Notes to the accounts for the year ended 31 March 2023 (continued)

6.1 Fixed assets - group

Recreational
Furniture &
Artworks
Asset
Computer
Properties
Total
equipment
fxtures
under
equipment
construction
Cost
£000
£000
£000
£000
£000
£000
£000		 6.1 Fixed assets - group

Recreational
Furniture &
Artworks
Asset
Computer
Properties
Total
equipment
fxtures
under
equipment
construction
Cost
£000
£000
£000
£000
£000
£000
£000
Brought forward at 1 April 2022
91
34
361
-
54
30,584
31,124
Additions
10
21
-
11
1,010
1,052
Revaluation
-
-
-
-
-
-
-
Transfer
-
-
-
-
-
Carried forward at 31 March 2023
101
55
361
-
65
31,594
32,176
Accumulated depreciation
Brought forward at 1 April 2022
82
14
-
-
15
38
149
Charge for the year
9
7
-
-
9
634
659
Carried forward at 31 March 2023
91
21
-
-
24
672
808
Net book value at 1 April 2022
9
20
361
-
39
30,546
30,976
Net book value at 31 March 2023
10
34
361
-
41
30,922
31,369
6.2 Fixed assets - charity
Recreational
Furniture &
Artworks
Asset
Computer
Properties
Total

equipment
fxtures
under
equipment
construction
Cost
£000
£000
£000
£000
£000
£000
£000		 91
34
361
-
54
30,584
31,124
10
21
-
11
1,010
1,052
-
-
-
-
-
-
-
-
-
-
-
-
101
55
361
-
65
31,594
32,176
82
14
-
-
15
38
149
9
7
-
-
9
634
659
91
21
-
-
24
672
808
9
20
361
-
39
30,546
30,976
10
34
361
-
41
30,922
31,369
Brought forward at 1 April 2022
Additions
Revaluation
Disposal: 2015-2022
Disposal: 2023
Carried forward at 31 March 2023
Accumulated depreciation
Brought forward at 1 April 2022
Charge for the year
Carried forward at 31 March 2022
Net book value at 1 April 2022
Net book value at 31 March 2023		 34
361
54
31,994
32,443
21
13
11
1,109
1,154
-
(1,410)
(1,410)
(112)
(112)
55
361
13
65
31,581
32,075

14
-
-
15
38
67
7
8
634
649
0
21
-
-
23
672
716
20
361
-
39
31,956
32,376
-
34
361
13
42
30,909
31,359

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 % Principal activity
Class
RFC Recreation Club Ltd Ordinary 100 Provision of recreational services
RFC Developments Ltd Ordinary 100 Design, construction and building services
RFC Enterprises Ltd Ordinary 100 Management of Pears Building
RFC Properties Ltd Ordinary 100 Company dormant and not yet trading
RFC Overage Ltd (previously called: Ordinary 100 Management of intangible assets
RFC Properties (CF Holdings) Ltd) from disposal of a property

THE FUTURE AND NOW

64

7 Subsidiary companies (continued

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

Year ended 31 March 2023
RFC
RFC
RFC
RFC
Overage
Enterprises
Recreation
Developments
Ltd*
Ltd
Club Ltd
Ltd
£000
£000
£000
£000		 Year ended 31 March 2023
RFC
RFC
RFC
RFC
Overage
Enterprises
Recreation
Developments
Ltd*
Ltd
Club Ltd
Ltd
£000
£000
£000
£000		 Year ended 31 March 2022
RFC
RFC
RFC
Enterprises
Recreation
Developments
Ltd
Club Ltd
Ltd
£000
£000
£000
Turnover
Expenditure
Result for the year
Total assets
Total liabilities
Net funds at the end of the year		 2,345
444
3,285
(1)
(2,192)
(395)
(2,290)
(1)
153
49
995
-
2,093
257
1,122
(1)
(2,202)
(104)
(1,122)
(1)
(109)
153
0		 1,895
439
742
(2,157)
(343)
(742)
(262)
96
0
2,230
236
2,449
(2,492)
(82)
(2,449)
(262)
153
0

The charity's other subsidiary companies (see note 16) did not trade during 2022/23. * RFC Overage Limited started trading during the year ended 31 March 2023. Therefore, there is no comparative information for the year ended 31 March 2022.

8 Analysis of investment portfolio

Market value as at 1 April
Less: Disposals at carrying value
Add: acquisitions at cost
Transfer from fxed assets (note 6)
Net gain/(loss) on revaluation
Market value as at 31 March		 Group
Charity
2022/23
2022/23
£000
£000
59,441
61,015
(7,154)
(8,589)
11,603
11,603
-
(789)
(789)
63,101
63,240		 Group
Charity
2021/22
2021/22
£000
£000
30,541
30,680
(1,438)
(1,438)
1,459
1,459
28,708
30,143
171
171
59,441
61,015

8.1 Investments–market value at 31 March

Held Held 2022/23 Held Held 2021/22
In UK overseas Total in UK overseas Total
£000 £000 £000 £000 £000 £000
Investment properties 1,401 - 1,401 1,401 - 1,401
Investments portfolio
Investments listed on London Stock Exchange 39 39 - 39 39
Investments in common investment funds 19,477 19,477 15,351 - 15,351
Cash held within the investment portfolio 312 312 172 - 172
19,789 39 19,828 15,523 39 15,562
Social Investments
Mixed-motive investment (see note 8.2) 13,770 - 13,770 13,770 - 13,770
Programme-related investment (see note 8.3) 28,102 28,102 28,708 - 28,708
41,872 0 41,872 42,478 - 42,478
Total investments - group 63,062 39 63,101 59,402 39 59,441
Investments in subsidiary companies 139 0 139 139 - 139
Programme-related investment (see note 8.3) - - 1,435 1,435
Total investments - charity 63,201 39 63,240 60,976 39 61,015

ROYAL FREE CHARITY ANNUAL REPORT + ACCOUNTS 2022-2023

65

Notes to the accounts for the year ended 31 March 2023 (continued)

8.2 Mixed-motive investment
Group Charity Group Charity
2022/23 2022/23 2021/22 2021/22
£000 £000 £000 £000
Market value as at 1 April 13,770 13,770 13,770 13,770
Add: acquisitions at cost - - - -
Add:gain on revaluation - - - -
Market value as at 31 March 13,770 13,770 13,770 13,770
"Mixed-motive investments" relate to a property used to help to fulfl the charity's charitable objectives as well as generating
investment income. A Red Book valuation of that property, using a sector specifc valuation toolkit (PodPlan), was performed
the 2020/21 fnancial year and resulted in a value of £13.8m.
during

8.3 Programme-related investments

Group Charity Group Charity
2022/23 2022/23 2021/22 2021/22
£000 £000 £000 £000
Market value as at 1 April
Transfer from fxed assets		 28,708 30,143 -
28,708		 -
30,143
Management cost for the Pears Building (1,435)
development expense
Amortisation for theyear (606) (606)
Market value as at 31 March 28,102 28,102 28,708 30,143
8.4 Analysis of investment income
Held Held 2022/23 Held Held 2021/22
In UK Overseas Total In UK Overseas Total
£000 £000 £000 £000 £000 £000
Investment properties 788 - 788 390 - 390
Mixed motive investment 665 - 665 588 - 588
Investments in common investment funds 337 - 337 247 - 247
Cash held outside the investmentportfolio 99 - 99 10 - 10
Total investment income 1,889 - 1,889 1,235 - 1,235

8.5 Details of material investment holdings

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

Value Value
2023 2022
£000 £000
M&G Charibond 6,415 6,911
Cazenove Majedie Asset Management UK Equity - 178
Charity Equity Value Fund 322 328
Findlay Park American fund 250 251
UBS ETF-MSCI World Socially 691 1,311
Trojan Ethical Fund - 474
BlackRock iShares Developed World 728 747
Vanguard S & P 500 UCITS ETF 444 470
Neuberger Berman 266
Schroder Alpha 295
J P Morgan 5,056
Total 14,467 10,670

THE FUTURE AND NOW

66

8.6 Gains/losses on investments

The 2022/23 net loss of £789,000 relates to the unrealised loss on investment in common investment funds.

9 Analysis of debtors

9 Analysis of debtors
Group
Charity
2023
2023
£000
£000		 Group
Charity
2022
2022
£000
£000
Prepayments
14
5
Due from subsidiary undertakings:
RFC Developments Ltd
1,101
RFC Recreation Club Ltd
44
RFC Enterprises Ltd
-
RFC Overage Ltd
50
Other debtors
19,894
19,565
Total debtors
19,908
20,764		 14
4
-
1,028
-
42
-
1,118
4,874
4,181
4,888
6,373

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 the construction of the Pears Building on the Royal Free Hospital site. The loan was increased to £1 million in January 2016. The completion of the development including successful resolution of snagging issues was finally agreed in March 2023. RFC Developments Ltd repaid £975k of the £1m loan by the end of March 2023 and the remaining balance of £25k in April 2023.

10 Analysis of creditors

10.1 Creditors falling due within one year

10 Analysis of creditors
10.1 Creditors falling due within one year
Group
Charity
2023
2023
£000
£000		 Group
Charity
2022
2022
£000
£000
8,416
8,416
0
1,992
0
1,571
5,618
2,782
14,034
14,761
Group
Charity
2022
2022
£000
£000
1,113
1,113
-
-
1,113
1,113
Grant and other accruals
20,753
19,595
Due to subsidiary undertaking - RFC Developments Ltd
0
Due to subsidiary undertaking - RFC Enterprises Ltd
0
Intercompany with RFC Enterprises Ltd
1,598
Other creditors
814
696
Total creditors falling due within one year
21,566
21,890
10.2 Creditors falling due after more than one year
Group
Charity
2023
2023
£000
£000
Grant accrual
0
0
Other creditors
-
-
Total creditors falling due within oneyear
-
-

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 the construction of the Pears Building on the Royal Free Hospital site. The loan was increased to £1 million in January 2016. The completion of the development including successful resolution of snagging issues was finally agreed in March 2023. RFC Developments Ltd repaid £975k of the £1m loan by the end of March 2023 and the remaining balance of £25k in April 2023.

ROYAL FREE CHARITY ANNUAL REPORT + ACCOUNTS 2022-2023

67

Notes to the accounts for the year ended 31 March 2023 (continued)

11 Analysis of material funds

11.1 Unrestricted funds

11 Analysis of material funds
11.1 Unrestricted funds
Value Value
2023 2022
£000 £000
Designated funds:
'Friends' Fund - transferred from the formerly separate charity, 15
125
Friends of the Royal Free Hospital
Departmental funds - Royal Free Hospital*
Clinical biochemistry 837 2,489
HIV/AIDS 1,369 1,404
Others 10,773 12,860
Total designated funds 12,994
16,878
Othergeneral funds(undesignated) 67,636
69,909
Total unrestricted funds 80,630 86,787

*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 fundholders in specific areas of the Royal Free London NHS Foundation Trust (cardiac, renal, etc) for use on appropriate projects as they arise.

11.2 Restricted funds

Restricted funds 2022/2023 Opening Income Expenditure Restricted Gains Closing
balance transfers (loss) balance
£000 £000 £000 £000 £000 £000
Trust infrastructure fund 0 12,000 0 0 12,000
RFL NHS Foundation Trust fund 16,000 (7,390) 8,610
Patient experience funds
Staf experience funds		 -
-		 20
13		 (20)
(13)		 0
0
Restricted grants 257 363 (681) 607 545
NAC capital fund - 3,563 (77) - 3,486
Peter Costin Memorial 572 - - - 572
St Peter's Trust 218 130 (125) - 222
Kitty Cookson Memorial 112 - (3) - 109
J F Moorhead 2,143 (33) - (51) 2,058
Dr Janet Owens Fellowship 564 - (215) - 349
Total restricted funds 19,866 16,089 (8,525) 574 (51) 27,953

Restricted grants consist of individual funds, which are kept under one fund. The funds are distributed as per the contractual terms and conditions.

Restricted funds 2021/2022 Opening Income Expenditure Transfers Gains Closing
balance (loss) balance
£000 £000 £000 £000 £000 £000
Capital appeal 34,065 150 - (34,215) - 0
RFL NHS Foundation Trust fund - 16,000 - - - 16,000
NHS Charities Together community - 735 (735) - - -
partnership
Restricted grants - - 575 - (318) - 257
Peter Costin Memorial 589 - (17) - - 572
St Peter's Trust 287 17 (86) - - 218
Dresden Assistance 422 - - (422) - -
Kitty Cookson Memorial 113 - (1) - - 112
J F Moorhead 2,052 25 (34) - 100 2,143
DrJanetOwensFellowship 569 - (5) - - 564
Total restricted funds 38,097 17,502 (879) ( 34,955) 100 19,866

THE FUTURE AND NOW

68

11.3 Details of the restricted funds

RFL infrastructure fund RFL Foundation Trust fund Patient experience funds Staff experience funds Capital appeal NHS Charities Together community partnership Restricted grants Peter Costin Memorial St Peter's Trust Kitty Cookson Memorial J F Moorhead Dr Janet Owens Fellowship

To fund clinical infrastructure improvements To fund various projects and contribute to development of Cancer Centre To fund enhancement of experience of NHS patients To fund enhancement of experience of NHS staff To fund the construction of the Pears Building To fund a number of local community projects To fund individual projects as described in the contracts To provide bursaries to medical students To support kidney, bladder and prostate research To support an oncology fellowship To support renal research To support research into Parkinson's disease

12 Contingent liabilities

There were no contingent liabilities at either 31 March 2023 or 31 March 2022.

13 Post-balance sheet events

There are no post balance sheet events.

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 2022/23 or 2021/22.

Judy Dewinter (trustee) was reimbursed travel expenses for £413 in 2022/23.

15 Related party interests

RFL NHS Foundation Trust trustees of the charity: Caroline Clarke, group chief executive (until April 2023; ) Dr Chris Streather, group chief medical officer (until 31 March 2023); Dr Gillian Smith, group chief medical officer (from 3 April 2023); and Ms Akta Raja, non-executive director.

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

RFC Recreation Club Ltd (company no 7686541) :

Company directors and employees of the charity: Yusuf Firat, director of finance, property and operations; Laura James, assistant director of innovation, (appointed 18 April 2023); Alison Kira, director of grants and services, (appointed 16 March 2023); Mark Tanton, head of property and operations, (appointed 18 April 2023), Jenny Todd, assistant director of services, (resigned 18 April 2023). Company director and charity trustee: Melanie Sherwood.

In 2022/23, RFC Recreation Club Ltd reimbursed the charity £220,659 in respect of staff salaries (2021/22: £173,126).

The company also made a gift aid donation to the charity of £49,152 (2021/22: £22,324). There was £130 due to the charity at 31 March 2023 (2021/22: £42,422).

The charity paid the company £nil (2021/22: £105) in respect of the use of facilities. None of this was outstanding at 31 March 2023.

ROYAL FREE CHARITY ANNUAL REPORT + ACCOUNTS 2022-2023

69

15 Related party interests (continued)

RFC Developments Ltd (company no 8729267) :

Company directors and charity trustees: Caroline Clarke (resigned 30 September 2022); Judy Dewinter (resigned 30 September 2022); Russell Gilbert (resigned 22 June 2022); Chris Streather (resigned 30 September 2022). Company director and charity employee: Jonathan Spiers, charity chief executive.

In 2022/23, the transactions between RFC Developments Ltd and the charity were:

Final costs and build services by the charity from RFC Developments Ltd - the charity was charged £3,285,475 (2021/22: £742,122), and £918,847 (2021/22: £1,991,542) was due to RFC Developments Ltd at 31 March 2023.

Loan of £975,000 out of £1m from the charity to RFC Developments Ltd was repaid in 2022/23 (see note 10). In 2021/22 the loan was at £1m.

RFC Developments Ltd was charged interest of £62,141 (2021/22: £61,929), which was outstanding at 31 March 2023 (31 March 2022: none).

Provision of administrative services by the charity to RFC Developments Ltd - RFC Developments Ltd was charged £12,000 (2021/22: £13,000), which was outstanding at 31 March 2023 (31 March 2022: none).

During the year RFC Developments Ltd made a gift aid distribution to the charity of £995,147 (2021/22: £139).

RFC Enterprises Ltd (company no 8729268) :

Company directors and charity trustees: Judy Dewinter; Russell Gilbert (resigned 22 June 2022); and Nina Robinson (resigned 12 July 2022). Company director and charity chief executive: Jonathan Spiers.

In 2022/23, the transactions between RFC Enterprises Ltd and the charity were:

The charity re-charged to RFC Enterprises Ltd total costs, net of VAT, of £1,666,232 (2022: £1,010,602) in respect of Pears Building expenditure paid on the company's behalf. At the year-end £nil (2022: £1,117,640) was owed to the charity by RFC Enterprises Ltd.

RFC Enterprises Ltd charged the charity £2,687,963 (2022: £1,571,031) in respect of services provided at the Pears Building.

At the year-end the charity owed £1,597,549 (2022: £1,571,031) to RFC Enterprises Ltd.

RFC Properties Ltd (company no 10609331) :

Company director and trustee: Russell Gilbert (resigned 22 June 2022).

There were no transactions between the charity and the subsidiary during 2022/23 (2022: none).

There were no outstanding balances from either party at 31 March 2023 (31 March 2022: none).

RFC Overage Ltd (company no 10699295) :

Company directors and charity employees: Jonathan Spiers, charity chief executive; and Yusuf Firat, director of finance, property and operations.

The charity provided loan of £50,000 to the subsidiary during 2022/23 (2022: none). The subsidiary owes £50,000 to the charity for the rights of a sold property (2022: none).

There were outstanding balances between both parties for £50,000 at 31 March 2023 (31 March 2022: none).

The company did not trade in 2021/22.

THE FUTURE AND NOW

70

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:

2022/23 2021/22
£000 £000
Due in less than a year - -
Due in 1-2 years - -
Due in 2-5 years - -

17 Members' liability

The charitable company is limited by guarantee, not having a 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.

ROYAL FREE CHARITY ANNUAL REPORT + ACCOUNTS 2022-2023

71

Our trustees

Professional advisors

Judy Dewinter

Chair of Trustees

Akta Raja Vice-Chair of Trustees

BANKERS

Lloyds Bank PLC 140 Camden High Street London NW1 0NG

Russell Brooks

Caroline Clarke (resigned 1 January 2024) Nicola Grinstead (resigned 11 June 2023) Oritseweyinmi Guate (appointed 28 January 2023, resigned 24 November 2023) Julie Hamilton (appointed 3 April 2023) Valerie Jolliffe (appointed 28 January 2023) Peter Landstrom (appointed 2 January 2024) Michael Luck (resigned 1 January 2024) Simon Lyons (appointed 28 January 2023) Katie Morrison Nina Robinson (resigned 12 July 2022) Melanie Sherwood Gillian Smith (appointed 3 April 2023) Chris Streather (retired 31 March 2023) Alistair Summers

Senior leadership team

Jon Spiers Chief Executive

Robin Meltzer Deputy Chief Executive, Director of Engagement and Communications Paul Stein Executive Director of Fundraising David Cheesman Interim Director of Strategy (appointed May 2023) Alison Kira Director of Grants and Services

Handelsbanken

2nd Floor 6A Hampstead High Street London NW3 1PR

INVESTMENT MANAGERS

Cazenove Capital Management 1 London Wall Place London EC2Y 5AU

M&G Investments 10 Fenchurch Avenue London EC3M 5AG

AUDITORS Crowe UK LLP Thames Valley Aquis House 49-51 Blagrave Street Reading RG1 1PL

SOLICITORS AND LEGACY ADVISERS Withers LLP 20 Old Bailey London EC4M 7AN

Sharron Grant Director of Human Resources

Laura James Interim Assistant Director of Services (maternity cover from February 2022 to February 2023); Assistant Director of Innovation (appointed February 2023)

Jenny Todd Assistant Director of Services (on maternity leave until February 2023) Yusuf Firat Director of Finance, Property and Operations and Company Secretary

Design: Adam Brown_01.02 Photography: Arnhel de Serra (full page images including back cover) Front cover: Steve Gschmeissner/Science Photo Library Animation: Huge designs

THE FUTURE AND NOW

72

Thank you

On behalf of the staff and patients of the Royal Free London NHS Foundation Trust and everyone at the Royal Free Charity, we off er our heartfelt thanks to all our supporters, including those who choose to give anonymously. Our generous network has raised funds, increased awareness of our charity and enabled us to respond fl exibly to the evolving needs of our hospitals, patients and staff during the past year.

From small acts of kindness to driving ambitious long-term projects that re-invent how our RFL colleagues deliver life-saving treatment, every single donation makes a diff erence to our hospital community.

We are pleased to recognise the following companies, charitable foundations and individuals for their support:

Alvarium Foundation

Antonia and Charles Filmer and all those who generously supported their neuroendocrine cancer research appeal Baha and Gaby Bassatne Biss Davies Charitable Trust Cecil Rosen Foundation

Charles Wolfson Charitable Trust Dave Shannon Ella Benezra

Emma and Clive Partridge Fairview New Homes Limited The Fraenkel Charitable Trust Gemma and Simon Lyons The Gerald and Gail Ronson Family Foundation Gillian Steggles Hinduja Foundation UK James and Nicola Reed Jeff rey Modell Foundation John Frankland

Jon Kelly and family Judy and Paul Dewinter Karen and Ian Paul Lady Annabel Goldsmith Legends Tour Mahboubian family Marcus Margulies Charitable Trust The Michael and Melanie Sherwood Foundation National Lottery Community Fund NHS Charities Together Nishi Somaiya Packie Bonner Pears Foundation R S Hoff man The Rind Foundation Sarit Raja-Shah Zac and Ben Goldsmith

royalfreecharity.org

@royalfreechty

RoyalFreeCharity E info@royalfreecharity.org

Charity no. 1165672 Company registration no. 09987907