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2021-03-31-accounts

Addenbrooke’s Charitable Trust Annual Report and Financial Statements 2020/21

Addenbrooke’s Charitable Trust (ACT)

Trustees’ Annual Report and Financial Statements 2020/21

Registered Charity number 1170103

Company registration number 10469089

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Addenbrooke’s Charitable Trust Annual Report and Financial Statements 2020/21

Contents

Section

Pages

1. How did we do – a summary ......................................................................... 3
2. Chairman’s and Chief Executive’s foreword ................................................. 5
3. Our Hospital and the role of ACT .................................................................. 7
4. Our activities ............................................................................................... 10
5. Our impact in 2020/21................................................................................. 13
6. Review of our strategic objectives in 2020/21 and our
plans for 2021/22 ........................................................................................ 20
7. Fundraising and charitable spend performance,
investments, reserves and risks .................................................................. 23
8. Our structure, governance and management ............................................. 26
9. Our Trustees, principal officers and legal advisors ..................................... 29
10. Statement of Trustees’ responsibilities ....................................................... 31
11. Special thanks ............................................................................................ 33
12. Auditor’s report ........................................................................................... 34
13. Financial report ........................................................................................... 38

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Addenbrooke’s Charitable Trust Annual Report and Financial Statements 2020/21

Section 1. How did we do?

Charitable Spend 2020/21 and 2019/20

Key Performance Indicators for 2020/21 (2019/20)

Total spend relating to COVID-19 Research

Staff Welfare and amenities Patients

£2,023,000 £1,367,000 72% of research spend £516,000 81% of staff spend

Charitable expenditure per pound spent Operating cost ratio

82p (71p)

33% (32%) total charity running costs as a proportion of total income 18,447 (12,680) 40 (38) average monthly headcount

Number of supporters on the ACT database ACT staff ACT Volunteers

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Addenbrooke’s Charitable Trust Annual Report and Financial Statements 2020/21

Five-year review: income and charitable spend

Five-year review: voluntary income

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Addenbrooke’s Charitable Trust Annual Report and Financial Statements 2020/21

Section 2. Chairman’s and Chief Executive’s foreword

Dear Supporter

2021, a year like no other…

In a year that was very difficult and challenging, we have been overwhelmed by the outpouring of support from the community around us. The Charity has been challenged to support our hospital in ways we have never had to before. We have had to embrace new ways of working, be that remotely as a team, creating new virtual fundraising activity or working closely to provide practical support to frontline workers.

We took some practical steps in managing the Charity – this included the furlough of staff and the redeployment of staff to ensure we could continue to support the hospital, as well as develop our activity for the future. We reduced our budget by 25% and worked closely with trustees on a regular basis to review the potential impact of COVID-19 which, at the beginning of the year, was an unknown quantity.

Taking these important steps, being quick to respond to the emergency, enabled us to close the year having generated £5.4m in fundraised income. Excluding legacies this was up 9% on the previous year. We are incredibly proud of the Charity team, they worked hard and tirelessly to deliver exceptional results which ultimately enable us to do more for the hospital and its’ patients. We are proud to be part of the CUH family and to have played our small part in supporting them throughout the COVID-19 pandemic.

We worked together to help our hospital…

We decided very early into the pandemic to set up an emergency appeal in response to overwhelming cries from you all asking how you can help the hospital. This appeal raised an astonishing £1.2m in the first six weeks and helped us to grow our supporter base by 45% in the year.

In addition, we worked very closely with hospital teams to identify how we could help - charity staff stepped up and ran an accommodation service for hospital staff unable to return to their family homes whist working in COVID-19 environments – amounting to some 7,239 nights’ sleep; and garnering the 750 overwhelming offers of support received from our community throughout the emergency.

We are immensely proud of our Addenbrooke’s and Rosie colleagues and how they have risen to the challenge of the crisis. As you will know, it is the hospital teams who make the difference to us all when we are faced with health challenges. The personal sacrifice, the innovation and the courage to challenge for new ways of working meant we could support new digital apps to enable remote outpatient appointments, technology to help scared patients visualise a changed hospital environment, new equipment to help diagnosis on the road, research to gain vital understanding of COVID-19’s impact on different patient groups and so much more. We have also been able to find small ways to show staff how well loved and supported they are, thinking about small acts of kindness that have helped them to relax, take a break, or practically by providing fruit or snacks or toiletries to revive their bodies of the effect of PPE.

You can read more about the success of our emergency appeal and what your generosity has enabled in section 5.

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Addenbrooke’s Charitable Trust Annual Report and Financial Statements 2020/21

We continued to work to the future…

You will know from our last report that we have been establishing our campaign activity to raise funds for the new Children’s Hospital . During the year, we confirmed our commitment to also raise funds for a new Cancer Research Hospital to be built here on the biomedical campus. These are exciting projects for us all, not only will these provide state of the art facilities for patients and staff, but they will also have research embedded at their heart, meaning that the contribution of our supporters will enable so much for patients today and for the healthcare models of the future. The projects are expected to be built and open 2025/26 and they will be the main focus of our fundraising activity in the coming years. This past year, we have been undertaking careful planning, working with regional ambassadors and individuals who can help us realise this ambition. We are planning for ways in which the broader public can play their part once the campaign has been strengthened through lead gifts.

However, we also recognise the importance of enabling our supporters to give to other areas within the hospital that are most important to them. We have been developing our strategies and processes to ensure that, as an organisation, we can support all of the activity that our supporters and our colleagues within the hospital need us to. In response to this, we have also commenced a strategic review that will result in a new strategic plan for 2022/27.

Undertaking capital campaigns will put considerable strain on our back office processes and, with an eye on the future, we have outsourced our post handling so that we can more efficiently process donations and thank our supporters, as well as implementing our new CRM system. We have also trialled new approaches to raising awareness of the charity amongst local communities utilising outdoor and radio advertising, as well as door drops. These have proved a successful medium for reaching new audiences and we will continue to use these as appropriate.

Our 2021/22 focus…

In this current financial year, we will retain focus on three areas:

  1. We have set ourselves an ambitious target to raise £1.5m for a new surgical robot and launched our activity for this in March 2021.

  2. We will continue to execute our campaign plans for the new hospital builds.

  3. We will support the hospital as it sets forward its’ recovery models post-COVID-19.

This past year hasn’t been easy, but it has been made so much easier by the continued and generous support of you all. For that, thank you. We look forward to sharing more good news with you as we drive to do more to Help Our Hospital in the year ahead.

Dr Rosalind Smith Chairman

Shelly Thake Chief Executive

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Addenbrooke’s Charitable Trust Annual Report and Financial Statements 2020/21

Section 3. Our hospital

ACT is dedicated to changing patients’ lives at Addenbrooke’s and the Rosie hospitals (Cambridge University Hospitals Foundation Trust). Whether it’s receiving care for an emergency, acute condition, pregnancy or long-term illness, we believe that every patient deserves the highest quality of treatment available.

Our hospital

Cambridge University Hospitals NHS Foundation Trust (CUH) is one of the largest and best-known hospital trusts in the country. CUH is the acute, general and maternity healthcare provider for its local community, delivering services through its hospitals, Addenbrooke’s and the Rosie. In addition, it is:

The future of our hospital

One of the three main priorities of CUH is focussed on ‘building for the future’ which includes the development of two new major hospitals for the region – Cambridge Children’s Hospital and Cambridge Cancer Research Hospital. These two new projects are currently going through the stages of the NHS process as part of the New Hospitals programme. Whilst Government funding has been allocated for these hospitals, there are significant philanthropic requirements to ensure that the hospitals deliver ambitious plans to embed clinical research and advancements beyond the services of the current time.

The Cambridge Children’s Hospital will be the first children’s hospital for the east of England region and, for the first time in history, will seek to integrate physical and mental healthcare together. The advancement of genomics research will also play a significant role, as will research into other significant areas of childhood disease, including diabetes, obesity as two examples.

The Cambridge Cancer Research Hospital will be the first research hospital in the UK, which will focus on early detection, prevention and personalised cancer care.

Both hospitals are due to be built and opened in 2025/26.

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Addenbrooke’s Charitable Trust Annual Report and Financial Statements 2020/21

The role of Addenbrooke’s Charitable Trust (ACT)

We support our Hospital Trust by raising funds and receiving voluntary gifts for cutting edge technology, additional specialist services, vital research and extra comforts for patients that make all the difference over and above what would be possible through NHS funding alone.

ACT fundraises and undertakes charitable trading so as to further increase the charitable funds available for the benefit of patients.

The Charity serves as custodian of the charitable funds received.

The Charity seeks to direct its charitable expenditure in a way that maximises public benefit. This is achieved through grant-making and through partnership with clinicians and managers in the hospital, known as ‘Fund Advisors’. Finally, ACT reports on the public benefit of its charitable expenditure through its website, regular ‘Impact newsletters’ and an annual impact review, so as to demonstrate accountability to its supporters and encourage ongoing support.

Our vision

ACT’s vision is to be a leading charity that achieves exceptional benefits for NHS patients.

Our mission

Addenbrooke’s Charitable Trust (ACT) is an independent registered charity (number 1170103) that raises funds to support Addenbrooke's and the Rosie, the Cambridge University Hospitals. We connect givers and causes, funding projects and facilities that are beyond the boundaries of the NHS to achieve the highest possible standards and outcomes in patient experience, clinical care, research and education.

Our values - which underpin everything we do

We challenge our people to:

Our charitable objectives

The objects of Addenbrooke’s Charitable Trust (ACT) are:

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Addenbrooke’s Charitable Trust Annual Report and Financial Statements 2020/21

In practice, this means that ACT:

Addenbrooke’s Charitable Trust Annual Report and Financial Statements 2020/21

Section 4. Our activities

Fundraising

We have a professional fundraising team looking after a wide range of donors including individuals, community fundraisers, businesses, major donors and grant-making trusts.

Acquisition is driven by our Communications team and our Grateful Patients’ programme where we work directly with 52 of the hospital’s 92 departments to raise awareness of handling philanthropy sensitively and professionally in a healthcare environment. The Grateful Patients’ programme also focuses on increasing awareness amongst hospital staff through on-site promotion, staff communications and impact.

Our two major streams of activity are a) fundraising for the hospital and b) launching capital appeals for the Cambridge Children’s Hospital and the Cambridge Cancer Research Hospital. At the beginning of the financial year, we entered the first national lockdown and moved our fundraising team to work from home to support our hospital. We paused some of our major activity including our Grateful Patients’ programme which relies heavily on in-hospital programmes and our capital appeal activity. We furloughed and re-deployed some staff while we waited to see the impact of the pandemic on fundraised income. In parallel, we launched a major COVID-19 appeal within two weeks of the first lockdown. Our integrated “help your hospital” appeal was highly successful, raising £1.2m within six weeks which we spent incredibly quickly to fund COVID-19 research, support our staff and to provide extra care to patients. We tested new activity to build our database including radio, outdoor advertising, a text-to-donate campaign and a door drop which grew our database by 46%. We re-established our paused activity programmes in September 2020 with energy and re-focused our fundraising team on planning for a new major appeal in the second half of the year to raise £1.5m for a new surgical robot to help the hospital expand robotic surgery to six new specialities in the hospital. We are indebted to our incredibly special donors and our supportive community who pulled together to support our wonderful hospital during these testing times.

Charitable trading

Within CUH, there are various not-for-profit education, training and development programmes which generate income from external sources. Some of this income, together with associated expenditures, has historically been administered by the Charity. Since 2018, the Charity has moved most of this income activity to CUH and will no longer accept new income of this nature.

During 2021/22, as a result of COVID-19, no income was generated. However, a small number of historical course funds remain which will over time either be spent out or transferred (with appropriate spend restrictions) to CUH. The most significant of these relate to the Postgraduate Medical Education Centre activity, the funds relating to which were approved for transfer to CUH by the Board on 23 March 2021. Course expenditure, within charitable expenditure, therefore, includes a grant accrual of £2.7m. This represents funds built up over several years. These are to be transferred under a grant agreement which specifies that the funds can only be expended on post graduate medical education activities.

Charitable expenditure

Charitable expenditure occurs through two main routes: grant-making and, at the request of Fund Advisors, from designated and restricted funds.

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Addenbrooke’s Charitable Trust Annual Report and Financial Statements 2020/21

Grant-making

The Charitable Expenditure Committee takes advice from a number of hospital advisory committees, each of which is made an annual allocation from unrestricted funds. These committees accept proposals on an open basis, both from CUH staff and from other charities providing services within CUH. Proposals are assessed on a competitive basis. Assessment criteria include scale of patient benefit; deliverability and conformity with charitable expenditure policy.

The advisory committees, together with their remit and awards for the year are as follows:

Committee Remit and award for 2020/21
Professional Advisory
Committee (PAC
 Equipment, works, staffing, external grants - if not related to
research and patient amenity projects.
Awarded £130,000.
Research Advisory
Committee (RAC)
 Research projects, infrastructure and medical and Nurses,
Midwives, Allied Health Professionals (NMAHP) fellowships.
Awarded £200,000
Innovation Panel
 Innovation projects.
Awarded £70,000

These committees also make recommendations on expenditure from designated and restricted funds.

During the year 2020/21, 65 grants were allocated by the committees ranging in value from £400 for wedding boxes used by the chaplaincy team to £250,000 for a research study looking at COVID-19 immunity in healthcare workers. The total value of these grants was: £1,845,511.

Non grant panel proposals, especially for expenditure from unrestricted funds, may also be received directly and considered by the Charitable Expenditure Committee.

In 2020/21, 29 direct proposals were received totalling £4,851,022 and included e.g. tablets to enable patients to contact loved ones, wellbeing facilities for staff, and psychological support for patients and staff.

Examples of projects funded through these various routes are given in the sections on our achievements. See pages 13-19.

Fund Advisors

The Trustees are responsible for a total of around 520 restricted and designated unrestricted funds, each of which supports a different department, ward, clinic, research or other programme in line with donors’ preferences. Fund Advisors, who are mostly senior clinical staff with specialist knowledge of the department or purposes supported by the fund, are responsible for recommending expenditure. There is a minimum of two Fund Advisors for each fund and they can recommend spend up to £5,000 for charitable purposes. Approval by ACT’s Chief Executive is required for spends above this and approval by Trustees is required for expenditure over £25,000.

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Addenbrooke’s Charitable Trust Annual Report and Financial Statements 2020/21

Involving Fund Advisors in this way means that expenditure decisions are well-informed and have the further benefit of encouraging the involvement of hospital staff in fundraising.

During 2020/21 around 39% (2019/20 49%) of expenditure by value and 96% (2019/20 97%) by volume of transactions were approved by Fund Advisors under delegated authority.

Funds Management

During 2019/20, an ACT project team was set up to initiate the reduction of the number of designated funds by encouraging the concept of consolidation across specialities. The project objective is to make greater amounts available, out of which relevant large project spend could take place. The project was paused during the pandemic and will continue in 2022/23.

Programme delivery

The Charity does not, in general, undertake the delivery of services as its operating model is to make grants in support of the service delivery of CUH.

The exception to this is Cambridge Global Health Partnerships (CGHP), link charity number 1170103-113. CGHP was born out of the belief that health should not be predetermined by where we live. Since 2007, CGHP has been supporting the strengthening of health systems through the health partnership model. Health partnerships facilitate an exchange of ideas and expertise between healthcare organisations in the UK and low- and middle-income settings.

Partnership activity includes the co-development and co-delivery of training, mentorship and other support. Such activities involve healthcare staff from CUH and other parts of the Cambridge health eco-system, who volunteer their time and expertise. These individuals benefit from significant personal and professional development, which is fed back into the NHS and leads to improved patient care. CGHP continues to develop opportunities for NHS staff to engage in and learn from global health activity, including a new global health fellowship scheme for senior trainees in the east of England.

Assets held for hospital-related purposes

ACT has acquired medical assets and entered into Programme Related Investment arrangements with CUH. Maintenance contracts are administered through the Fund for Addenbrooke’s Ltd (FFA Ltd). These arrangements have enabled the hospital to acquire leading edge technology such as a surgical robot and a LINAC radiotherapy machine.

The Charity also owns two of the six MRI scanners in use by the hospital. Under long-standing agreements with CUH, these are made available for hospital use and the hospital pays management charges to the Charity’s charitable trading subsidiary, FFA Ltd. These arrangements create a surplus which is transferred back to ACT, building a sinking fund for scanner replacement. These arrangements have enabled the hospital to remain at the leading edge of MRI technology for the past quarter century . The current agreements run until December 2021. In March 2021, the Trustees approved the use of the remainder of the fund for a major MRI upgrade plan costing £2.5m to be commissioned in 2021/22.

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Addenbrooke’s Charitable Trust Annual Report and Financial Statements 2020/21

Section 5. Our impact in 2020/21

We wouldn’t be able to achieve as many great things throughout the hospital without the kindness and generosity of our supporters for which we are incredibly grateful.

Making a difference to patients and staff during the COVID-19 pandemic

COVID-19 has led to very significant change in our hospital. It had to respond very quickly to be able to treat large numbers of patients with the virus. This was very visible to the public across the country and globally, with things like critical care capacity and availability of ventilators hitting the headlines.

Less visible was the depth and range of research going on behind the scenes. The race to find a vaccine was well-known, but behind the scenes at Addenbrooke’s, researchers from multiple disciplines mobilised at great speed to research more accurate and quicker diagnosis methods, improved treatments and ways to manage the after effects of the virus (known as long COVID).

There will not be a single team at the hospital that has not been affected by COVID-19. They may have been treating COVID-19 patients directly or may have needed to adjust their service and way of working to continue to see and treat their patients. Or they may have been a team servicing the front-line departments; the domestic staff, security, the estates team, procurement, the list goes on. Regardless of their role, everybody has had to change the way they work and, critically, keep themselves, their patients and their families safe.

In the face of the global pandemic crisis, our role was to help. Addenbrooke’s Charitable Trust worked closely with the hospital and has:

How we’ve helped in the fight against COVID-19

In our COVID-19 response, we have helped the hospital, their patients and staff in three core areas:

The impact of Captain Tom and NHS Charities Together

The fundraising efforts of the late Captain Sir Thomas Moore will be long remembered by many. Popularly known as Captain Tom, his fundraising efforts for NHS charities raised over £30m. The charity that he raised money for, NHS Charities Together, made grants to Addenbrooke’s Charitable Trust to the value of £214,100 in 2020/21.

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Addenbrooke’s Charitable Trust Annual Report and Financial Statements 2020/21

This funding has helped us to respond quickly to priorities that have emerged during COVID-19. Some of the highlights of how this money has been used includes:

Supporting innovations to allow services to be delivered outside of the hospital that have improved patient care in the hospital

During COVID-19, hospitals across the world have faced serious challenges to maintain regular services. ACT has supported projects at Addenbrooke’s such as DigiVis and DigiHear, enabling vision and hearing assessments respectively to be carried out off-site, reducing the need for patients to come into the hospital.

The DigiVis project was awarded funding of £22,050 thanks to a legacy gift. The project was conceived to provide a platform for testing of visual acuity in the home and schools. In an environment where access to opticians, GP surgeries and hospitals was extremely limited, the platform has enabled self-testing by using two digital devices, a ruler and a piece of A4 paper!

Our funding enabled the home testing method to be validated so that it could be used clinically. This means that parents and their children can be spared a trip into hospital unless absolutely necessary.

Funding of COVID-19 related research

ACT’s COVID-19 research programme has focused on three key themes: diagnosis, treatment and recovery. In 2020/21 we provided grants totalling £1,367,930 for COVID-19-related research:

Case study: COVID-19 diagnosis

We awarded a grant of £25,000 that explored the testing of hospital staff who had no symptoms of COVID-19 and risks of healthcare worker infection. The study found that 3% of hospital staff may unknowingly be infected with the virus. The findings demonstrated that a rapid staff screening process needed to be implemented across the NHS and to introduce additional measures to better protect staff and patients within the hospital environment. The findings went on to help shape national policy around the testing of healthcare workers.

The study, titled “ Use of longitudinal sampling of healthcare workers to assess degree of COVID19 carriage and identify risk factors associated with healthcare worker infection ”, was led by Dr Michael Weekes and was co-funded by ACT and Wellcome. Dr Weekes was recognised in the Queen’s New Year’s Honours list for his services to the NHS during COVID-19.

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Addenbrooke’s Charitable Trust Annual Report and Financial Statements 2020/21

Case study: COVID-19 treatment

We awarded a grant of £100,000 for an important research project that is exploring whether existing drugs could help treat the symptoms of COVID-19. The TACTIC study (which stands for A Multi-Arm Therapeutic Study in patients with COVID-19) is looking at new and existing drugs and whether they are effective at treating COVID-19.

Our funding was specifically for the part of the trial looking at repurposing existing drugs. It is hoped that the drugs chosen to be evaluated will show that they can reduce severe symptoms and reduce intensive care admissions. At the time of writing, no findings have been published.

Case study: COVID-19 recovery

Dr Miles Parkes, Director of Cambridge Biomedical Research Centre (BRC), coordinated a project carrying out research on understanding the long-term effects of COVID-19. The project has made important findings around the reasons why some people experience so-called long COVID and valuable insights into the role of the immune system in long COVID

The project has been supported by multiple funders, including a grant of £237,743 by Addenbrooke’s Charitable Trust.

Providing support for staff

The third major impact area during COVID-19 has been our support for staff in the hospital. This support started almost immediately after patients started to be admitted to the hospital. Around this time, there were concerns that the NHS may have shortages of personal protective equipment (PPE). Responding to this, generous donors started offering PPE to the hospital, mostly from the surrounding area but a significant number from individuals and corporations in China. ACT very quickly formed two new teams from existing staff to handle these offers: one to manage the high volume of offers of PPE, of snacks, health and wellbeing items and meals and the other to manage the offers of local accommodation being offered to hospital staff, for a short while running a matching service for staff needing local accommodation away from home to protect their loved ones or where the new absence of public transport presented issues in travelling to work.

The team managing PPE offers, snacks, health and wellbeing items and meals continued in existence right through the year, seeing the volume of offers fluctuate with COVID-19 peaks. We worked in partnership with the University of Cambridge and hospital procurement to accept and receive appropriate PPE offers, with an off-site collection point being established at Trinity College. For the non-PPE offers, we worked closely with the on-site gym (the Frank Lee Centre) which was set up as a collection and distribution hub.

Fresh food offers were very numerous during the first wave. To be able to accept these, we worked with Professor Sadaf Farooqi and her team at the Institute of Metabolic Science (which is on site at Addenbrooke’s). There, a commercial-grade research kitchen was out of use due to COVID-19. Using these facilities, the team was able to prepare, chill and freeze meals. This was particularly useful when pubs and restaurants were forced to close due to COVID-19 and we were able to make use of food ingredients that were being offered to us as a result of these forced closures and turn them into healthy chilled meals for front-line staff.

Significant funding from the ALBORADA Trust allowed us to offer hardship grants for staff members worst-hit financially by the virus, and the funding also allowed us to create dedicated wellbeing rooms for staff in intensive care, neuro critical care and main theatres areas of the hospital. This funding also allowed us to set up facilitated ‘trauma release exercise’ sessions for staff, helping them to deal with often the challenging and new experiences of working in the hospital during a global pandemic.

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Addenbrooke’s Charitable Trust Annual Report and Financial Statements 2020/21

At a departmental level, we were able to support enhanced and dedicated psychological support for staff in the emergency department, with funding on a smaller scale for many other departments for locally-led initiatives and ideas to support staff.

Doctors for Doctors

ACT funding enabled a pilot project to be set up to support doctors. The project gives one-to-one support and is provided by a small team of GPs skilled in providing pastoral care. As it is provided by doctors, the team has a shared understanding of the pressures on their medical and surgical colleagues which has enabled doctors to effectively discuss and explore ways to address their issues.

Psychological support in the emergency department

Our support for a pilot in the emergency department has allowed for dedicated psychological support input for staff in the emergency department. This will allow for the concept to be proven and evidence to be gathered that is helps the workforce to be more resilient and reduced staff sickness rates. The dedicated support is also for patients, helping them when they have encountered trauma and improving the patient experience.

Major projects

Despite COVID-19, we’ve been able to commit funding for new high-value (over £10k) projects that don’t have a COVID-19 focus. As last year, many of our projects have focused on the themes of treatment, diagnosis and recovery. However, this year there have also been some significant projects focussed on psychological support. These projects have enabled pilot projects to go ahead for some patient groups who previously had no dedicated support. Some highlights of the major projects we have committed funding to are set out below.

Treatment

The Emmeline Centre is a specialist hearing implant centre. Funding of £18,000 has been awarded to provide reception and waiting facilities at the entrance to the clinic, providing a welcoming environment to patients arriving at the centre. This funding is in addition to the £800,000 committed in 2019/20 for an expansion to the Emmeline Centre, the building works for which commenced this year.

Diagnosis

The hospital’s ultrasound department is an important destination for many patients as a diagnosis is sought. A grant of £21,600 has enabled significant environmental improvements to be implemented, taking what was quite a dated environment and bringing in a modern, vibrant atmosphere. Each of the ultrasound rooms has benefited from large-format decorative wall vinyls, including a dedicated room for children undergoing scans.

Recovery

Lipodystrophy is a group of disorders that mean the body cannot produce and maintain healthy fat tissue. This can be associated with other conditions, such as diabetes and pancreatitis. A £20,000 grant from ACT has supported a study helping to understand how fatigue affects people living with this condition. Addenbrooke’s is the only UK centre that runs a specialist clinic for patients with lipodystrophy. The study will also explore how living with the condition affects quality of life.

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Addenbrooke’s Charitable Trust Annual Report and Financial Statements 2020/21

Mental health

Funding of £43,920 was awarded to allow the urology department to pilot a new post providing dedicated psychological support to patients with functional urological conditions. A grant of £250,000 was awarded to pilot a new consultant psychiatrist post to work with patients with functional neurological disorders and/or with associated mental health problems. Both projects will be fully evaluated by the hospital and the service provider, the Cambridgeshire and Peterborough NHS Foundation Trust, in pursuit of justifying ongoing NHS funding.

Projects in progress

The following projects over £50,000 were committed to (and accrued) prior to this year. A summary of their progress is provided:

Smaller projects

Our spend on smaller-value projects and initiatives has remained popular this year, with some 806 applications for funding outside of our grants programme. 593 of these were approved (with 98 outstanding at year end). Some of the highlights include:

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Addenbrooke’s Charitable Trust Annual Report and Financial Statements 2020/21

Arts and Hospital Archives

The Charity has continued to provide support for the arts and archives programme at the hospital, providing funding for the position of Head of Arts and the small specialist team that works to deliver arts and heritage activities. During the pandemic, programme activity quickly pivoted to provide much-needed wellbeing support to both patients and staff. The team was also dedicated to capturing this significant period in the hospital’s history by sourcing and preserving documents for the archives, and through creative projects that documented individual stories and the collective experience of the hospital community.

CUH Arts

CUH Arts is Cambridge University Hospital’s arts-in-health programme, dedicated to shaping care through creativity. CUH Arts aims to promote wellbeing, distract from illness and improve the hospital experience by providing creative and cultural opportunities for its patients, staff and visitors. Its rich and diverse person-centred programme of live, participatory and visual arts is led by professional artists, and its public art collection is one of the largest in the country. This year, the arts programme continued to make a vital contribution to the care of the hospital community through a blended programme of both in-person and online provision. Highlights include:

Hospital Archives

The hospital archives are dedicated to preserving and making accessible the history of the hospital through the collection and exhibition of the hospital’s administrative records, physical artefacts, stories and accounts. During 2020/2021, the Hospital Archivist has continued to work on a number of projects, with a focus on two very important areas:

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Addenbrooke’s Charitable Trust Annual Report and Financial Statements 2020/21

Forward look to 2021/22

As the COVID-19 pandemic stabilises, it is expected that the call on ACT to support real-time COVID-19 related projects will reduce significantly. We continue to work with the hospital teams to identify projects that will enable the hospital to recover from the impact that COVID has had on the hospital services and the staff. There is a significant focus on staff support going forwards as we begin to understand the lasting impact that working through the pandemic has had on the clinical and support teams. In terms of hospital services, we anticipate a significant focus on expenditure to support service improvement and innovation to help services resume to pre-COVID levels, and to advance the positive advancements that have been made throughout the lockdown periods with increased digitalisation.

We anticipate that expenditure will remain buoyant, with some large projects on the horizon e.g. MRI upgrades and the successful delivery of our project to raise funds for a new surgical robot for the hospital.

Cambridge Global Health Partnerships (CGHP)

Throughout 2020/21, the organisation pivoted activity toward online learning and virtual technologies. Made necessary by the pandemic and essential for planetary health, this has broadened access to global health engagement opportunities and has proven a great success. Health partnership activity has continued across our partnerships with Myanmar, Uganda, Botswana and El Salvador. New partnerships have also developed, including an infectious diseases partnership with the University of Zimbabwe, a partnership with a regional hospital in Sierra Leone to develop stroke and cardiac services, and most recently a new partnership initially sharing COVID-19 experience and learning with a large teaching hospital in Nairobi, Kenya. All projects are co-led by healthcare staff in the overseas partner institution and in Cambridge. Through the health partnerships, CGHP has responded directly to the COVID-19 pandemic, supporting partners in establishing protocols, sharing learning and best practice, and in the provision of personal protective equipment and alcohol gel.

In line with the Strategy 2020+, CGHP seeks to act as a regional global health hub providing specialist experience, multidisciplinary health partnerships, events and networking opportunities. Virtual technologies have enabled CGHP to deliver a variety of online events, including the East of England Global Health Conference. Delivered over two days, the event brought together over 118 people to discuss and explore the global health research, education and practice taking place in the region. Keynote speaker was Dame Sally Davies, former Chief Medical Officer and now Master of Trinity College, Cambridge.

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Addenbrooke’s Charitable Trust Annual Report and Financial Statements 2020/21

Section 6. Addenbrooke’s Charitable Trust strategic review

Our strategic goals:

Our strategic focus since 2014/15 has been to double fundraised income and expenditure to benefit patients and support CUH’s overall strategy through focussing on growing existing relationships and developing new ones for sustainable increased income. In September 2020, the senior management team and trustees have reviewed the strategy and begun to develop the strategic plan that will take us through the next five years and beyond. It remains our strategic ambition to continue to grow our income and our reach as the hospital’s charity, alongside focussed and targeted activity to realise the ambitions of two new hospitals on the Cambridge Biomedical Campus and to ultimately deliver significant benefit to patients beyond that which the NHS is able to do.

Our objectives in 2020/21 and how we performed :

Objective Deliverables Achievements
Become the UK’s leader
in Grateful Patient
Fundraising to
seismically shift our
income		 Deliver voluntary income of £3.2m, which attempts to reflect the
potential impact of COVID-19 on the Charity.
Continue to develop, improve and deliver our Grateful Patients’
strategy through our hospital engagement programme.
Review our existing framework to ensure we develop a sustainable
model for income and expenditure aligned with the hospital strategy
and changing landscape.
Develop our proposition of making the hospital even better through
the new propeller model, including a broader and more general ask to
grow our general fund and strengthen support we can give to
strategic hospital projects.		 -
We delivered £5.2m of voluntary income for the year.
-
We held three grateful patient events which added
116 new supporters to our database.
-
We trained a further 21 clinicians virtually on grateful
patient fundraising.
-
Significant reduction in the footfall throughout the
hospital has meant our proactive awareness.
campaign was halted and was restarted in Q1 of
2021.
-
We continued to focus on our Help the Hospital
appeal.
Increase visibility of the
Charity on the hospital
campus so that all staff
and the majority of
patients know about ACT		 Use communications materials and a hospital’s staff engagement
programme to include new induction content measured by an
increase in staff awareness of the Charity as measured in the annual
staff survey, including a monthly staff newsletter and increased email
interactions with donors and grateful patients.		 -
We used the COVID-19 appeal to further raise
awareness amongst our community with the
introduction of outdoor advertising and utilisation of
radio advertising.
-
Whilst we progressed our brand refresh, we have
placed this work on hold as we evolve the new charity
strategy.

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Addenbrooke’s Charitable Trust Annual Report and Financial Statements 2020/21

Our objectives in 2020/21 and how we performed (continued)


Objective
Deliverables		 Achievements
Continue to build a
capital campaign		 Further develop the campaign plan for ACT, ensuring we can respond
to the ever-changing external environment.		 -
Our Capital Campaigns team has made great
progress throughout the year, despite the limitations
of COVID-19.
-
We have developed our campaign plan, are working
now with 35 regional ambassadors in the execution of
this plan.
-
We have hosted a number of webinars to continue
our activity on capital campaigns.
-
We secured a pledge for £3m for the campaign.
Ensure strategic
alignment with the
hospital		 Undertake a review of our fundraising strategy to ensure full
alignment with the hospital and the increased emphasis on capital
campaigns – the children’s hospital, the cancer research hospital and
the new Addenbrooke’s v3 programme.
Work with the hospital strategy team to ensure that the Charity is best
placed to support new strategic projects and prioritise charitable
expenditure against the hospital’s strategic priorities.		 -
A strategic review was undertaken with the Senior
Leadership team and the trustee body which
identified key focus areas for the strategy around:
-
capital campaigns,
-
extending the potential of our grateful patients’
programme,
-
strengthening our business as usual model within
the context of capital campaign fundraising, and
-
development of a future grants and funding
strategy.
-
The Senior Leadership team is now developing the
strategic plan for the 2022/27 strategy which will be
developed by Autumn 2021.
Impact Strengthen our ability to deliver greater measures and impact analysis
through increased liaison with grant recipients and involvement in
health economics models.
Ensure that we communicate widely the response to COVID-19 and
deliver long lasting impact on the new and transformed ways of
working - including how we support the shift in focus on keeping
people out of hospital.		 -
We have continued to strengthen our impact reporting
throughout the year, including revised reporting
activity on our charitable expenditure activity.
-
There is still much more room for improvement in the
coming year.

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Addenbrooke’s Charitable Trust Annual Report and Financial Statements 2020/21

Our strategic objectives and their associated deliverables for the next 12 months

2021/22
Objective Deliverables
Grow our income through our Grateful
Patient Fundraising strategy		 •
Deliver voluntary income of £6m, taking into account any potential impact of COVID-19 on the
Charity.
•
Continue to develop, improve and deliver our Grateful Patients’ strategy through our hospital
engagement programme.
•
Continually develop our engagement model to enable an increase in Grateful Patient giving.
Deliver plans to increase brand awareness
of ACT as the charity of choice within
Cambridge Biomedical Campus		 •
Broaden communication channels to strengthen staff and patients’ awareness of ACT.
Develop our staff •
Ensure they have the right skills, tools and are in the right jobs, with every member of staff
having a development plan in place.
•
Identify opportunities for all staff to develop ‘capital campaign experience’ through the activities
focussed on the Children’s Hospital and the Cancer Research Hospital campaigns.
Deliver our revised fundraising strategy to
incorporate our focus on fundraising for a
robot and the two capital campaigns		 •
Execute the campaign plans for ACT, ensuring we can respond to the ever-changing external
environment and building on elements as they rollout (i.e. public phase).
Ensure strategic alignment with the
hospital		 ~~•~~
Undertake a review of charitable expenditure activity to gain closer alignment with the hospital
needs post COVID-19.
•
Work with the hospital strategy team to ensure that the charity is best placed to support new
strategic projects, and prioritise charitable expenditure against the hospital’s strategic priorities.
•
Focus on streamlining our funds and grants processes to gain greater effectiveness and impact.
Impact •
Strengthen our ability to deliver greater measures and impact analysis through increased liaison
with grant recipients and involvement in health economics models. Ensure that we communicate
widely the response to COVID-19 and deliver long lasting impact on the new and transformed
ways of working-including how we support the shift in focus on keeping people out of hospital.
Develop the strategic plan to 2027 •
Develop the strategic plan for the future sustainability of the charity and the evolving needs of
our supporters and the hospital we support.

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Addenbrooke’s Charitable Trust Annual Report and Financial Statements 2020/21

Section 7. Fundraising and charitable spend performance , investments, reserves and risks

Income

Whilst 2020/21 total income at £6.7m was 8% down on the previous year (2019/20 £7.3m), the Charity achieved growth in key fundraised income areas due to public support for our hospital in handling the COVID-19 pandemic.

Fundraised Income 2020/21
£’000		 2019/20
£’000		 2018/19
£000
Donations and Community
Fundraising		 2,844 2,306 1,958
Grants 1,236 1,427 997
Legacies 1,339 1,878 3,814

Legacies were better than expected but delays due to the impact of COVID-19 on the probate service delivered the lowest legacy income for seven years.

Expenditure

Raising funds - costs of the Charity

The Charity took a conscious decision not to reduce its headcount at the start of the pandemic. They are a skilled and professional team that would take time to replace. This was to protect our ability to deliver the £40m capital campaign commitments for the two new hospitals. Discretionary spend budgets however were cut (with the exception of capacity building for the capital campaigns and remote working enabling costs). As all staff costs (fundraising, governance and project) represent 72% of the costs to run the Charity, this meant that year on year costs held steady.

Charitable activity

Total expenditure for the year was £8.7m compared to £5.4m last year. Of this, £2.7m represents a grant to CUH from PGME education activity funds, to be used solely for the development of post graduate medical education activity. The increase in staff welfare related expenditure reflects the needs of the NHS and the support of the public and other grant funders during the pandemic. COVID-19 related research projects exponentially increased the number of applications handled by the Charity and its external research panel.

Grants
awarded
2020/21
£’000		 Other
costs
2020/21
£’000*		 Total
2020/21
£’000		 Total
2019/20
£’000		 Total
2018/19
£’000
Patients’ welfare and amenities 2,206 128 2,334 2,543 2,194
Staff welfare and amenities 603 35 638 411 522
Research 1,795 104 1,899 1,077 2,139
Course expenditure 2,750 160 2,910 300 338
Depreciation on medical assets 607 35 642 692 690
Other direct charitable expenditure 14 267 281 388 282
Total 7,975 729 8,704 5,411 6,165

*other costs are the allocation of costs incurred by the Charity to support and facilitate these charitable activities

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Addenbrooke’s Charitable Trust Annual Report and Financial Statements 2020/21

Investments

Medical assets

The Charity has a programme-related investment (PRI) policy that allows for total PRI of up to 15% of total investment and sets the parameters for management. The financial performance of these investments has been consistent with the objectives set by Trustees.

Stock market investments

The investment policy states that the Trustees shall adopt a ‘cautious balanced’ approach in which the goal of avoiding capital losses is balanced with the goal of achieving returns that exceed those available from cash, requiring some acceptance of the risk of capital losses.

The portfolio is managed by two investment managers – Hambros and CCLA and each has been set a different investment objective:

Hambros : Not to lose greater than 5% of capital value on a rolling 12-month basis.

CCLA :

From 1 April to 31 December - to exceed cash returns on a total returns basis net of fees, without exceeding losses of over 5% in any 12-month rolling period to a 90% probability.

From 1 January 2021, following a mandate review by the investment committee, to exceed cash returns on a total return basis net of fees, without exceeding losses of over 5.5% in any 24-month rolling period to a 90% probability

The performance for the year saw both portfolios recover from the downturn in markets at the beginning of the pandemic, generating largely unrealised gains of almost £1m and generating income of £0.2m. Thereby, meeting their objectives.

The two fund managers follow the strict guidelines which mean that ACT shall not invest in any company or collective fund with significant involvement in tobacco products.

The monitoring of these objectives has been delegated to the Investment Committee which meets twice a year and reviews policy and performance with the investment managers. Performance against benchmarking is indicated by the investment managers in their report. The committee includes both Trustees and external experts for whose voluntary contribution the Trustees are extremely grateful.

Properties

Residential property is primarily held to provide a long-term return, of income and capital appreciation, that exceeds price inflation. The properties are managed by a reputable local property agent – Cheffins. In 2020/21, the properties were subjected to an interim valuation which increased their values by £0.2m. The annual return performance was consistent with the benchmark set. This reflects the properties' proximity to the hospital (from where most tenants are sourced, and which generates a strong rental income stream).

The balance sheet of the Charity remains strong with £17m invested in the Charity’s absolute return portfolio; £6m in residential property and £6.2m in short-term bank deposits.

Reserves

As a consequence of the decrease in income and the significant increase in expenditure partially offset by the investment gains, total funds fell by £2.8m from £25.7m. Of this, £18.6m or 81% is held in restricted or designated funds.

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Addenbrooke’s Charitable Trust Annual Report and Financial Statements 2020/21

Free reserves

In June 2017 (and April 2021), the free reserves policy of holding at least six months operating costs was approved by the Trustees. This was agreed on the basis that the Charity has recourse to around 400 funds which it administers in the event that adverse economic conditions affect the Charity's ability to raise funds. The policy is to treat unrestricted funds of £18.9m excluding designated funds of £14.5m as free reserves. At the balance sheet date, these amounted to £4.4m, including £9,000 in respect of the trading subsidiary.

In April 2020, as a result of the COVID-19 pandemic, the Trustees approved a revised 2020/21 budget which assumes a 25% fall in voluntary income. A forecast of free reserves for the year, based on the revised budget, indicated that free reserves could fall by at least 40%. As a result of exceeding that voluntary income target by 49% and the recovery of investments, free reserves have grown by 170%.

Operating costs, including capacity building for the two capital campaigns, are budgeted to be £3m for 2021/22 of which 70% are staff costs. The Trustees have also confirmed their willingness to use surplus free reserves to fund the grants programme (approximately £600,000 in 2021/22), to maintain investment in fundraising expertise and to continue to fund the investment in the Children’s and Cancer Hospitals Campaigns.

Designated funds

At 31 March 2021, there were 406 designated funds totalling £14.5m and they hold monies donated for a particular ward or specialism and amounts set aside for grants made by the Charity.

In April 2020, on the grounds of urgent need, the Trustees exercised their right to re-designate £976,000 of funds to be used towards the COVID-19 crisis.

Risk Management

The Charity identifies and appraises operational and strategic risk through a process involving staff drawn from across the organisation. Typically, an annual workshop is held, in which the staff involved identify, agree and classify risks. The resulting risk register is reviewed by the senior management team, updated and discussed with Trustees on a quarterly basis.

We have put in place specific action and contingency plans to ensure that the risks are properly managed and any potential impact is minimised.

There were two risks identified as red in April 2021:

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Addenbrooke’s Charitable Trust Annual Report and Financial Statements 2020/21

Section 8. Our structure, governance and management

Our legal status

The Charity (charity number 1170103) is a company limited by guarantee (company number 10469089). On 1 April 2017, the Charity was incorporated as an independent charity and ceased to be an NHS charity. The Charity’s governing document is its Memorandum and Articles of Association.

The Charity also owns a non-charitable subsidiary, The Fund for Addenbrooke’s Ltd (company number 4287054), which serves as a vehicle for non-charitable trading activity.

In addition to responsibility for Addenbrooke’s Charitable Trust, the Trustees are also responsible for various precursor and related charities. Cambridge Global Health Partnerships (formerly Addenbrooke’s Abroad) has objects that extend to the promotion of health in countries other than the UK. Addenbrooke’s Hospital Recreational and Development Trust owns the freehold of the hospital’s sports and social club, which is maintained and managed by CUH under a long leasehold agreement.

The principal purpose of the Charity is to support Cambridge University Hospitals NHS Foundation Trust in its delivery of care to patients of Addenbrooke’s and the Rosie hospitals and in the wider communities.

Public Benefit

The Trustees confirm that they are aware of the requirements of The Charities Act 2011 that they must have regard to the guidance of the Charity Commission in relation to public benefit and have considered the guidance “Public benefit: the public benefit requirement (September 2013)”. ACT’s activities make a difference for the extensive community served by CUH, as evidenced in this report.

Governance and management

The Trustees are collectively responsible for the overall governance and strategy of the Charity and for ensuring that the Charity acts in a way that is consistent with its objects and results in public benefit. There were thirteen trustees in office during the year. There were eleven independent trustees and two trustees representing CUH NHS Foundation Trust.

In 2020/21, the Trustees have temporarily increased the number of Trustee positions by two to facilitate succession planning and a smooth transition for those Trustees who will reach their maximum term of office and to allow for the need to focus on the strategic drivers of the hospital, namely the two capital campaigns.

The Trustee appointments’ process is designed to ensure fairness and openness and ensure a trustee body that has the mix of experience, skills, knowledge and competencies required. All trustee vacancies are handled through the Nominations Committee (NC), which is linked to the Human Resources Committee (HRC). An independent external assessor, nominated by the NC, is involved in the selection process, including interviews.

Trustees are appointed for four-year terms in the first instance, renewable up to ten years, subject to satisfactory performance. New trustees are introduced to the Charity through an induction process that involves ACT and CUH staff and other trustees.

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Addenbrooke’s Charitable Trust Annual Report and Financial Statements 2020/21

The Trustees meet formally as a full governing body four times a year but also meet less formally from time to time for strategic planning and other developmental activities. It discusses and approves operating plans and budgets. There is a review of operational activity and financial performance at every meeting. The Senior Management team is invited to all Trustee board meetings and other managers are invited to attend for presentations and discussions on specific topics.

Trustee committees

The Trustees delegate responsibility for more detailed consideration of the Charity’s affairs to six committees and each Trustee is a member of at least one of the following:

Charity Governance code review

The Board of Trustees considers the Charity to have sound governance arrangements in place. Compliance with the Charity Governance Code was conducted in 2017/18 and found to be satisfactory.

During 2020/21, a further review was undertaken using Checklist 3 for ‘Charities in a regular partnership or funding relationship with a non-charity that is not its founder or trading subsidiary’. Only one matter relating to impact recording was identified as requiring further action and this is a key strategic objective that we intend to fulfil by investment in a grant management system during 2021/22.

Pay and remuneration arrangements.

The Board of Trustees has specific responsibility for remuneration matters. It will agree final recommendations on annual increases to the salary budget as part of the budget-setting process for the forthcoming financial year.

The Chief Executive and Senior Management Team agree starting salaries for new staff within the agreed salary budget. They will make recommendations on overall increase levels as part of the pay review process for existing staff, subject to approval by the Board.

Pay and remuneration for key management personnel is recommended to the Board of Trustees by the Remuneration Committee. Reference is made to other NHS charity salaries and sector wide senior salary benchmark reports in arriving at their recommendations.

The Charity has a flexible salary structure. Each individual’s remuneration will be fair and appropriate with reference to prevailing market rates for similar roles and responsibilities. There are no salary scales or set incremental rises. An annual review of salaries takes place each year. The annual review will not guarantee an increase in salary. The review will take into consideration changes in the cost of living, prevailing market rates for comparable work and any increase in responsibility in the role.

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Addenbrooke’s Charitable Trust Annual Report and Financial Statements 2020/21

Fundraising

ACT is registered with the Fundraising Regulator and adheres to the Code of Fundraising Practice. ACT works with third-party suppliers to support and deliver our fundraising campaigns. All new suppliers (and any potential commercial participators) sign written agreements to adhere to ACT’s standards and policies; with reviews undertaken on a six-monthly basis.

ACT’s fundraising policy sets out standards for protecting vulnerable people. Staff receive training and refreshers for how to protect vulnerable people.

The Board reviewed 11 complaints with the Chief Executive at the quarterly board meetings during 2020/21. Complaints were diverse including supporter thanking, supporter database administration matters and CUH staff and donor comments about projects.

The number of complaints has decreased from last year despite now recording complaints from hospital staff as well as donors.

The public benefit arising from charitable expenditure is also monitored and communicated to supporters via regular impact reports .

In respect of ensuring that our fundraisers or fundraising activities do not pressurise vulnerable people, we have formalised, as part of introduction of the General Data Protection Regulation (GDPR) , the need to have donors or potential donors to opt-in by providing consent to interacting with ACT.

ACT is committed to safeguarding the security and protection of the personal information that we process, and to deliver a compliant and consistent approach to data protection in accordance with the GDPR. All staff undergo annual training sessions to guarantee GDPR is kept at the heart of all of our activity and that our supporters are treated fairly and transparently.

The Board of Trustees maintains overall oversight of governance and ethical aspects of fundraising and provides advice to senior management in order to support good governance and effective performance of the fundraising task.

Volunteers

The Charity is reliant on the support of our volunteers, many of whom have supported our work in fundraising for the hospital over many years. Volunteers provide this support in various ways:

During 2020/21, the activity of our ambassador volunteers and office volunteers was paused due to the pandemic.

Cambridge Global Health Partnerships also relies on volunteer days to achieve its programme of support to countries with developing economies. Sadly, due to the pandemic, this activity was also paused.

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Addenbrooke’s Charitable Trust Annual Report and Financial Statements 2020/21

Section 9. Our Trustees, principal officers and legal advisors

Patron

The Countess of St Andrews

President

Dame Mary Archer

From 1 September 2020

Vice-President

Dame Mary Archer

Up to 31 August 2020

Trustees

Dr Rosalind Smith[1,4,5]

Chairman of Trustees and Chairman of Nominations Committee

Mr Chris Rees[1,2,5,6] Mr Keith Wade[1,4]

Vice-Chairman of Trustees and Chairman of the Human Resources and Remuneration Committee

Honorary Treasurer, Chairman of Finance and General Purposes Committee and Chairman of Investment Committee

Dr Fiona Cornish[3]

Chairman of Charitable Expenditure Committee

Dr Mike Knapton[6]

Chairman of Fundraising Committee Representative of CUH NHS Foundation Trust,

Mr John Ayton[1]

Dr Hugo Ford[3]

Representative of CUH NHS Foundation Trust

Mr William Fox[1,4]

Appointed 4 August 2020

Professor Helen Howe[2,3,5]

Mrs Claire Smith[6]

Mr James Stevens[6 ]

Appointed 1 March 2021

Mr Simon Thorley[4,5]

Mr Christopher Walkinshaw[2]

Trustees serve on the following committees:

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Addenbrooke’s Charitable Trust Annual Report and Financial Statements 2020/21

President – Cambridge Global Health Partnerships (formerly Addenbrooke’s Abroad )

Dame Mary Archer

Principal Officers

The Principal Officer roles are identified as Chief Executive, Director of Fundraising, Director of Capital Campaigns and Director of Finance. These are defined as key management personnel (known as the Senior Management Team) due to their delegated responsibility for the day to day running of the Charity.

Ms Shelly Thake , Chief Executive

Mrs Gemma Downham, Director of Capital Campaigns

Mr Jonathan McGee, Interim Director of Fundraising

Mrs Julie Roy, Director of Finance

Principal Advisors

Ashtons Legal, legal advisors (employment)

Barclays Bank, banking services

CCLA Investment Management Ltd, investment managers

Cheffins, property managers

James Hambro & Partners LLP, investment managers

Moore Kingston Smith LLP, auditors

Withers LLP, legal advisors

Other names used by the Charity

ACT

Contact information

Principal office: Addenbrooke's Charitable Trust, Box 126, Addenbrooke’s Hospital, Hills Road, Cambridge, CB2 0QQ

Tel: 01223 217757 Email: hello@act4addenbrookes.org.uk Website: www.act4addenbrookes.org.uk

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Addenbrooke’s Charitable Trust Annual Report and Financial Statements 2020/21

Section 10. Statement of Trustees’ responsibilities

The charity trustees (who are also the directors of Addenbrooke’s Charitable Trust for the purposes of company law) are responsible for preparing a trustees’ annual report and financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

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

In preparing the financial statements, the trustees are required to:

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and to 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 the group and hence taking reasonable steps for the prevention and detection of fraud and other irregularities. There were no serious incidents during the financial year that should have been reported to the Charity Commission but were not.

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

Statement as to disclosure to our auditors

In so far as the trustees are aware at the time of approving our trustees’ annual report:

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Addenbrooke’s Charitable Trust Annual Report and Financial Statements 2020/21

This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies and with the Statement of Recommended Practice, Accounting and Reporting by Charities (FRS 102) effective 1 January 2015.

By order of the Board of Trustees

Signed:

Chairman :

Date: 28 September 2021

Dr Rosalind Smith

Hon Treasurer :

Date: 28 September 2021

Keith Wade

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Addenbrooke’s Charitable Trust Annual Report and Financial Statements 2020/21

Section 11. Special Thanks

We would like to acknowledge the generous support from the following trusts and foundations whose gifts are enabling us to undertake the following projects at the hospital:

The ALBORADA Trust

The ALBORADA Trust responded swiftly to the COVID-19 pandemic, offering generous grants for the hospital in its time of greatest need. Providing a suite of support, The ALBORADA Trust has enabled us to establish a financial assistance scheme for hospital staff, distribute grocery vouchers and wellbeing packs for frontline colleagues, undertake research on lung injury and create COVID19 ‘wobble’ rooms, giving staff a quiet space to rest and recuperate.

NHS Charities Together

During 2020, Addenbrooke’s Charitable Trust received extensive support from NHS Charities Together, with the aim of helping hospital staff, patients and volunteers to cope with the immediate effects of COVID-19. This enabled us to purchase iPads for patients who were unable to see their families face-to-face, to run cultural intelligence workshops to promote the wellbeing of BAME colleagues who had been disproportionately affected by COVID-19 and distribute wellbeing hampers to staff who had worked tirelessly during the year to care for those affected by the pandemic.

The Forster Foundation

Thanks to The Forster Foundation, Addenbrooke’s Charitable Trust was able to fund the development of a new diagnostic test card, capable of identifying the cause of respiratory tract infections in less than 24 hours, including COVID-19.

Garfield Weston Foundation

The Garfield Weston Foundation provided generous support during 2020/21 for staff wellbeing and welfare at Cambridge University Hospitals during the COVID-19 pandemic. They enabled the establishment of a new psychological support service for the Emergency Department, a specialist service to support all aspects of staff wellbeing.

The Evelyn Trust

The pandemic put the hospital under a huge amount of pressure and the mental health of NHS workers and frontline staff was highlighted as needing support. The Evelyn Trust agreed a grant of £40,000 to ACT towards a doctors-for-doctors support programme, providing dedicated support for doctors by fellow doctors specialising in psychological support.

Road Safety Trust

In May 2016, a grant was awarded to ACT to work with Cambridgeshire and Peterborough Road Safety Partnership on a three-year research project which involves taking a detailed look at crashes that cause severe injury and death. In particular, the project focuses on examining the types of drivers who are involved in these crashes. This innovative project brings together partners from the Local Authority, Emergency Services, Loughborough University and Cambridge University Hospitals, and allows them the opportunity to explore the value of prevention strategies targeting groups of drivers with similar characteristics to those considered culpable (rather than victims).

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Addenbrooke’s Charitable Trust Annual Report and Financial Statements 2020/21

Section 12. Auditor’s report

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS AND TRUSTEES OF ADDENBROOKE’S CHARITABLE TRUST

Opinion

We have audited the financial statements of Addenbrooke’s Charitable Trust (the ’company’) for the year ended 31 March 2021 which comprise the Group Statement of Financial Activities, the Group and Parent Charitable Company Balance Sheets, the Group Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 ‘The Financial Reporting Standard Applicable in the UK and Republic of Ireland’ (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

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

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Addenbrooke’s Charitable Trust Annual Report and Financial Statements 2020/21

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

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

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

We have nothing to report in respect of the following matters where the Companies Act 2006 and the Charities Act 2011 require 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 31, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

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Addenbrooke’s Charitable Trust Annual Report and Financial Statements 2020/21

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditor under the Companies Act 2006 and section 151 of the Charities Act 2011 and report in accordance with those Acts.

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

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.

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

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

Our approach was as follows:

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

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Addenbrooke’s Charitable Trust Annual Report and Financial Statements 2020/21

higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

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

Use of our report

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and, in respect of the consolidated financial statements, to the charity’s trustees, as a body, in accordance with Chapter 3 of Part 8 of the Charities Act 2011. Our audit work has been undertaken so that we might state to the charitable company’s members and trustees those matters which we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to any party other than the charitable company, the charitable company’s members, as a body, and the charity’s trustees, as a body, for our audit work, for this report, or for the opinion we have formed.

Neil Finlayson (Senior Statutory Auditor)

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

Date: 30 September 2021

Devonshire House 60 Goswell Road London EC1M 7AD

Moore Kingston Smith LLP is eligible to act as auditor in terms of Section 1212 of the Companies Act 2006.

37

Addenbrooke’s Charitable Trust Annual Report and Financial Statements 2020/21

Section 13. Financial report

Consolidated statement of financial activities for the year ended 31 March 2021

INCOME FROM:
Note
Donations
2.1
Legacies
Other grants receivable
Other trading activities
2.2
Trading subsidiary
4.3
Investments
2.3
Charitable Activities
2.4
Total income
EXPENDITURE ON:
Raising funds - costs of the charity
3.1,12		 Unrestricted
Restricted
Group
Group
Funds
Funds
31-Mar-21
31-Mar-20
£'000
£'000
£'000
£'000
1,744
473
2,217
1,650
1,324
15
1,339
1,878
368
868
1,236
1,427
568
59
627
656
811
-
811
1,043
417
-
417
469
17
-
17
144
5,249
1,415
6,664
7,267
(1,570)
(165)
(1,735)
(1,767)
Raising funds - costs of the subsidiary
3.1,4.3,12
Charitable activities
3.1, 3.2,12		 (228)
-
(228)
(434)
(6,659)
(2,045)
(8,704)
(5,411)
Total Expenditure
Net gains/(losses) on investment assets
4.3
Transfers between funds
7
Net movement in funds
Reconciliation of funds:
Net (expenditure) / income		 (8,457)
(2,210)
(10,667)
(7,612)
1,219
-
1,219
(230)
(1,989)
(795)
(2,784)
(575)
(1)
1
-
0
(1,990)
(794)
(2,784)
(575)
Total funds brought forward at 1 April 2020
13.6
Total funds carried forward at 31 March 2021
7		 20,850
4,902
25,752
26,327
18,860
4,108
22,968
25,752

All gains and losses recognised in the year are included in the Statement of Financial Activities. The accompanying notes form part of these financial statements.

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Addenbrooke’s Charitable Trust Annual Report and Financial Statements 2020/21

Balance sheets as at 31 March 2021

----- Start of picture text -----
Note Group Charity Group Charity
31-Mar-21 31-Mar-21 31-Mar-20 31-Mar-20
£'000 £'000 £'000 £'000
Fixed Assets
Tangible fixed assets 4.1 1,105 1,105 1,741 1,741
Intangible fixed assets 4.2 67 67 80 80
Investments 4.3 23,049 23,049 21,781 21,781
Total fixed assets 24,221 24,221 23,602 23,602
Current Assets
Debtors 5 882 1,062 973 1,105
Cash at bank and in hand 6,222 6,015 4,909 4,745
Total current assets 7,104 7,077 5,882 5,850
Creditors: amounts falling due within one year 6 (8,357) (8,339) (3,732) (3,709)
Net current assets (1,253) (1,262) 2,150 2,141
Total assets less current liabilities and net
assets 22,968 22,959 25,752 25,743
Funds
Restricted income funds 7,13 4,108 4,108 4,902 4,902
Unrestricted income funds 7,13 18,860 18,851 20,850 20,841
Total Funds 22,968 22,959 25,752 25,743
----- End of picture text -----

Addenbrooke’s Charitable Trust has taken advantage of the exemption in section 408 of the Companies Act 2006 from disclosing its individual Statement of Financial Activities. The net movement in funds is £2.8m deficit (2020: £0.6m surplus) after taking account of £1.2m gain (2020: £0.2m loss) on investment assets.

The financial statements on pages 38 to 69 were approved by the Board of Trustees on 28 September 2021 and signed on its behalf by:

Signed:

Chairman:

Date: 28 September 2021

Dr. Rosalind Smith

Hon Treasurer:

Date: 28 September 2021

Keith Wade

Company number 10469089

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Addenbrooke’s Charitable Trust Annual Report and Financial Statements 2020/21

Consolidated statement of cash flows for the year ended 31 March 2021

Note
Group
Group
Group
Group
31-Mar-21
31-Mar-21
31-Mar-20
31-Mar-20
£'000
£'000
£'000
£'000
Cash flows from operating activities
Net cash generated (used in) operating activities
3,279
(2,452)
Cash flows from investing activities
Dividends and interest received
2.3
192
238
Net income from property
2.3
226
231
Purchase of tangible fixed assets
4.1
(9)
(89)
Purchase of intangible fixed assets
4.2
(16)
(48)
Purchase of investments
4.3
(4,213)
(6,254)
Proceeds on disposal of investments
4.3
1,854
8,540
(1,966)
2,617
Net cash provided by investing activities		 Note
Group
Group
Group
Group
31-Mar-21
31-Mar-21
31-Mar-20
31-Mar-20
£'000
£'000
£'000
£'000
Cash flows from operating activities
Net cash generated (used in) operating activities
3,279
(2,452)
Cash flows from investing activities
Dividends and interest received
2.3
192
238
Net income from property
2.3
226
231
Purchase of tangible fixed assets
4.1
(9)
(89)
Purchase of intangible fixed assets
4.2
(16)
(48)
Purchase of investments
4.3
(4,213)
(6,254)
Proceeds on disposal of investments
4.3
1,854
8,540
(1,966)
2,617
Net cash provided by investing activities
Change in cash and cash equivalents in the reporting period 1,313
167
Cash and cash equivalents at the end of the reporting period
Cash and cash equivalents at the beginning of the reporting period		 4,909
4,742
6,222
4,909

Notes to the cash flow statement

Reconciliation of net movement in funds to net cash flow from operating activities

Net movement in funds
Depreciation charge
Amortisation charge
Investment income
Realised/unrealised (gain)/loss on fixed asset investments
Decrease /(Increase) in cash held in investment portfolio
Decrease/(increase) in debtors
Increase/(decrease) in creditors
Net cash (outflow) from operating activities		 Group
31-Mar-21
£'000
(2,784)
645
29
(418)
(1,219)
2,310
91
4,625
3,279		 Group
31-Mar-20
£'000
(575)
670
17
(469)
230
(2,901)
235
342
(2,452)

Increase/(decrease) in cash

Current accounts Group
Change in
Group
Change in
31-Mar-21
year
31-Mar-20
year
£000
£000
£000
£000
6,222
1,313
4,909
167		 Group
31-Mar-19
£000
4,742
Cash at bank and in hand 6,222
1,313
4,909
167		 4,742

The Charity has no net debt and accordingly no net debt note is presented

40

Addenbrooke’s Charitable Trust Annual Report and Financial Statements 2020/21

Notes to the financial statements

Note 1 Significant accounting policies

The following accounting policies have been used consistently in dealing with items which are considered material in relation to the Group’s financial statements.

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 through income and expenditure within the Statement of Financial Activities.

The financial statements have been prepared in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). The Charity is a public benefit entity for the purposes of FRS 102 and therefore the Charity also prepared its financial statements in accordance with the Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (The FRS 102 Charities SORP), the Charities Act 2011 and Companies Act 2006.

The financial statements are prepared in sterling which is the functional currency of the Charity. Monetary amounts in these financial statements are rounded to the nearest £1,000.

The Charity is a registered charity, and as such is entitled to certain tax exemptions on income and profits from investments, and surpluses on any trading activities carried on in furtherance of the Charity's primary objectives, if these profits and surpluses are applied solely for charitable purposes.

Basis of preparation

The Financial Statements are prepared in accordance with the accruals concept and on a going concern basis.

Critical accounting estimates and areas of judgement

In the application of the Charity’s accounting policies, described in note 1, the Trustees are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below:

Valuation of fixed asset investments

At 31 March 2021, the fund managers provided a valuation of the Charity’s investment portfolio which has been reported in these financial statements. This valuation is based on the latest mid closing price quoted on the stock market or by the fund manager.

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Addenbrooke’s Charitable Trust Annual Report and Financial Statements 2020/21

Notes to the financial statements

Note 1 Significant accounting policies (continued)

Valuation of investment properties

The Charity’s investment property is included in the financial statements at valuation as described in note 4 to the financial statements. This is considered to be a critical accounting estimate in view of the amounts involved and the judgements applied in their valuation, particularly in light of uncertainties arising from the coronavirus pandemic.

The investment property was last re-valued by a third party, Cheffins, on 31 March 2017 in accordance with the Practice Statements and Guidance Notes contained in the Valuation Standards of the Royal Institution of Chartered Surveyors (RICS) 6th Edition. The Trustees have re-considered the valuations as at the balance sheet date with reference to further advice from Cheffins and other available market information, factoring in the potential impact of the coronavirus. The Trustees consider that the latest valuations represent the best estimate of fair value at the balance sheet date.

Depreciation and amortisation

The charges in respect of depreciation and amortisation are derived after determining an estimate of an asset’s expected useful life and the expected residual value at the end of its life. Increasing an asset’s expected life or its residual value would result in a reduced depreciation or amortisation charge in the Charity’s financial statements.

The useful lives and residual values of the Charity’s assets are determined by management at the time the asset is acquired and reviewed annually for appropriateness. The lives are based on historical experience with similar assets as well as anticipation of future events which may impact their life such as changes in technology.

Going concern

The Trustees have assessed whether the use of the going concern basis is appropriate and have considered possible events or conditions, including COVID-19, that might cast significant doubt on the ability of the Charity to continue as a going concern. The Trustees have made this assessment for a period of at least one year from the date of approval of the financial statements. In particular, the Trustees have considered the Charity’s forecasts and projections and have taken account of pressures on income. After making enquiries, the Trustees have concluded that there is a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. The Charity therefore continues to adopt the going concern basis in preparing its financial statements.

Discontinued operations

During 2018, the Charity transferred all processing activity relating to education and other income generation by the Postgraduate Medical Education Centre (PGME) back to Cambridge University Hospitals NHS Foundation Trust (CUH). In 2019/20 some payments were made from the related funds which were in accordance with their education objectives. These are disclosed as a discontinuing operation in the 2019/20 accounts. During 2021 the Trustees approved a grant of the majority of the accumulated PGME fund balances to CUH. In the 2020/21 accounts this is no longer shown as a discontinuing operation and is included in the expenditure on charitable activities from unrestricted funds.

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Addenbrooke’s Charitable Trust Annual Report and Financial Statements 2020/21

Notes to the financial statements

Note 1 Significant accounting policies (continued)

1.1 Public benefit

The Charity is a Public Benefit Entity as defined by FRS 102.

1.2 Consolidation

The Charity owns 100% of the issued share capital of The Fund for Addenbrooke’s Limited, a trading company registered in England and Wales (company number 4287054). The share capital of the company is £1.

The consolidated group results incorporate:

The financial statements of The Fund for Addenbrooke’s Limited on a line by line basis. All intercompany transactions have been eliminated on consolidation.

The income and expenditure of the linked charity, Cambridge Global Health Partnerships, charity number 1170103-113.

1.3 Income

The policies followed, which deal with income and donations, are:

Donations

All incoming resources are included in full in the Statement of Financial Activities as soon as the following three factors can be met:

Cash donations are accounted for when received in the cash office.

Gifts in kind are recognised as income and expenditure at the market rate of the goods or services provided.

Legacies

Legacies are included in incoming resources once they have been received or receipt becomes probable. This will usually be once grant of probate has been made, confirmation has been received from the representatives of the estate that there are sufficient net assets in the estate for payment of the legacy, and once all conditions attached to the legacy have been fulfilled.

Government grants

Grants relating to revenue are recognised in income on a systematic basis over the period in which the Charity recognises the associated costs for which the grant is intended to compensate. This includes £23k of Government assistance under the Coronavirus Job Retention Scheme (CJRS) relating to staff who were furloughed due to COVID-19.

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Addenbrooke’s Charitable Trust Annual Report and Financial Statements 2020/21

Notes to the financial statements

Note 1 Significant accounting policies (continued)

1.3 Income (continued)

Other grants receivable

Other grants receivable are included in incoming resources once there is sufficient evidence that any conditions attached have been fulfilled; unconditional grants are recognised at the earlier of receipt or entitlement.

Other trading activities

Other trading activities are the fundraising activities carried out by the Charity primarily to generate income which will be used to undertake its charitable activities.

Income from charitable activities

Income from charitable activities is any income for which a payment has been received for services provided for the benefit of the Charity’s beneficiaries, such as course fees or professional fees. This income is included when invoiced or on receipt.

Deferred income

Income has been deferred and included within creditors, where the transaction creating the income has already occurred, but the income relates to a future financial period.

Investment Income

Income from fixed asset investments and investment properties is included once they have been received.

1.4 Expenditure

All expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party.

Expenditure on raising funds are the costs associated with generating income.

Grants payable are included in charitable activities and are payments made to third parties in the furtherance of charitable objectives. Grants payable are given on an individual basis to cover patient/staff welfare, research and amenities and are recognised once the third party has a reasonable expectation that they will receive the grant and all of the conditions, if any, attaching to the grant have been met. Similarly, contributions to the NHS Foundation Trust are recognised on the same basis.

Governance costs are the costs associated with the governance arrangements of the Charity which relate to the general running of the Charity as opposed to those costs associated with fundraising or charitable activities. These costs include audit costs, legal advice for the Trustees and costs associated with constitutional and statutory requirements.

Staff costs, other support costs and governance costs are allocated between expenditure on raising funds and charitable activities on the basis of actual accrued spend (where applicable) and relative spend for each area.

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Addenbrooke’s Charitable Trust Annual Report and Financial Statements 2020/21

Notes to the financial statements

Note 1 Significant accounting policies (continued)

1.4 Expenditure (continued)

It is the Charity’s policy to apportion an element of its support costs, which cannot be attributed directly to specific funds, across funds based on a fixed percentage applied to the fund’s average monthly balance. The remaining balance of support costs are funded from investment income, the ACT general funds and by a deduction from unrestricted legacy income and unrestricted donations received throughout the year.

1.5 Definitions of funds

The Charity holds restricted and unrestricted funds; unrestricted funds may be either designated or undesignated.

1.6 Financial instruments

Cash and cash equivalents

Cash and cash equivalents include cash at banks and in hand and short-term deposits with a maturity date of three months or less.

Debtors and creditors

Debtors and creditors receivable or payable within one year of the reporting date are carried at their transaction price. Debtors and creditors that are receivable or payable in more than one year, and not subject to a market rate of interest, are measured at the present value of the expected future receipts or payment discounted at a market rate of interest.

Fixed asset investments

Investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing quoted market price. The Statement of Financial Activities includes the net gains and losses arising on revaluation and disposals throughout the year.

1.7 Investment properties

The Charity holds a portfolio of investment properties. Rent receivable during the year is recognised in the Statement of Financial Activities under investment income when received.

Investment properties are included in the Financial Statements at their market value, based on professional valuation. Gains or losses are re-calculated as the difference between the market value at the current year end and the market value at the previous year end using the closing quoted market price. The Statement of Financial Activities includes the net gains and losses arising on revaluation and disposals throughout the year.

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Addenbrooke’s Charitable Trust Annual Report and Financial Statements 2020/21

Notes to the financial statements

Note 1 Significant accounting policies (continued)

1.8 Investments in subsidiary undertakings

Investments in subsidiary undertakings are treated as fixed asset investments and accounted for in the Charity’s accounts at cost less any impairment.

1.9 Pension contributions

Pension costs

The Charity operates two pension schemes:

NHS Pension Scheme

Past and present employees who were employed by the ‘old charity’ are covered by the provisions of the NHS Pension Scheme. Details of the benefits payable under these provisions can be found on the NHS Pensions website at www.nhsbsa.nhs.uk/pensions. The scheme is an unfunded, defined benefit scheme (which prepares its own scheme statements) that covers NHS employers, general practices and other bodies, allowed under the direction of the Secretary of State in England and Wales. As a consequence, it is not possible for the Charity to identify its share of the underlying scheme liabilities. Therefore, the scheme is accounted for as a defined contribution scheme. The Charity retains its membership through a ‘Directions Status’, which means that new employees starting after 31 March 2017 are not entitled to join the scheme.

Employers’ pension cost contributions are charged to operating expenses as and when they become due. In the current period, this totalled £65k (2020: £71k).

Additional pension liabilities arising from early retirements are not funded by the scheme except where the retirement is due to ill health. The full amount of the liability for the additional costs is charged at the time the Charity commits itself to the retirement, regardless of the method of payment.

Royal London Group Personal Pension Scheme

In January 2018, the Charity put in place a group personal pension scheme in accordance with its auto enrolment responsibilities.

Employers’ pension cost contributions are charged to operating expenses as and when they become due. In the current period, this totalled £62k (2020: £52k).

1.10 Employee benefits

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

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Addenbrooke’s Charitable Trust Annual Report and Financial Statements 2020/21

Notes to the financial statements

Note 1 Significant accounting policies (continued)

1.11 Tangible fixed assets

Valuation

Tangible fixed assets are stated at cost, including any costs such as installation directly attributable to bringing them into working condition. The carrying values of tangible fixed assets are reviewed for impairment if events or changes in circumstances indicate the carrying value may not be recoverable. All fixed assets over £200 are capitalised.

Depreciation

Tangible fixed assets are depreciated at rates calculated to write them down to estimated residual value on a straight-line basis over their estimated useful lives, as follows:

Asset type Life in years

Medical equipment 5 - 7 Leasehold improvements 5 Office equipment 5

1.12 Intangible fixed assets

Intangible assets are non-monetary assets without physical substance which are capable of being sold separately from the Charity’s business or which arise from contractual or other legal rights. They are recognised only where it is probable that future economic benefits will flow to, or service potential be provided to the Charity, and where the cost of the asset can be measured reliably.

Computer software

Software which is integral to the operation of hardware e.g. an operating system, is capitalised as part of the relevant item of office and computer equipment within tangible fixed assets. Software which is not integral to the operation of hardware e.g. application software and purchased application licences, are capitalised as intangible fixed assets.

Amortisation

Intangible fixed assets are amortised at rates calculated to write them down to estimated residual value on a straight-line basis over their estimated useful lives, as follows:

Asset type Life in years Computer software 5

1.13 Provisions

The Charity provides for legal or constructive obligations that are of uncertain timing or amount at the balance sheet date on the basis of the best estimate of the expenditure required to settle the obligation.

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Addenbrooke’s Charitable Trust Annual Report and Financial Statements 2020/21

Notes to the financial statements

Note 1 Significant accounting policies (continued)

1.14 Irrecoverable VAT

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

1.15 Parent charity financial statements

Addenbrooke’s Charitable Trust has taken advantage of the exemption in section 408 of the Companies Act 2006 from disclosing its individual SOFA.

1.16 Operating lease commitments

Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged against profits on a straight-line basis over the period of the lease.

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Addenbrooke’s Charitable Trust Annual Report and Financial Statements 2020/21

Notes to the financial statements

Note 2
Income
2.1 Donations Group
Group
31-Mar-21
31-Mar-20
From individuals and corporates £'000 £'000
In response to appeals 1,520
1,110
Unsolicited donations
Gifts in kind		 599
532
98
8
2,217
1,650
2.2 Other Trading Activities
Community Fundraising
Lottery / Raffles
Merchandise Sales		 598
629
26
27
3
-
627
656

2.3 Investment income


Interest on deposits
Stock market investment income
Rent from properties		 Unrestricted
Restricted
Group
Group
Funds
Funds
31-Mar-21
31-Mar-20
£'000 £'000 £'000 £'000
14
-
14
17
177
-
177
221
226
-
226
231
417
-
417
469

2.4 Incoming resources from charitable activities


PGMC course fees
PGME course development funding
Other Course fees
Third Party Services Provided		 Unrestricted
Restricted
Group
Group
Funds
Funds
31-Mar-21
31-Mar-20
£'000 £'000 £'000 £'000
1
-
1
-
-
-
-
-
(7)
-
(7)
90
23
-
23
54
17
-
17
144

From 1 January 2018 the Charity transferred all processing activity relating to education and other income generation by the Postgraduate Medical Education Centre (PGME) back to Cambridge University Hospitals (CUH). This is disclosed as a discontinuing operation in the 2019/20 accounts. In 2020/21 this is included in income from Charitable activities and totalled £1k (2019/20 £nil).

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Addenbrooke’s Charitable Trust Annual Report and Financial Statements 2020/21

Notes to the financial statements Note 3 Expenditure 3.1 Resources expended

Raising funds - costs of the charity
Cost of raising funds
Raising funds - costs of the subsidiary
Cost of raising funds
Charitable activities
Patients' welfare and amenities		 Staff costs
Direct
fundraising
costs
Governance
costs
Investment
management
costs
Trading
subsidiary
costs
Expenditure
on
Charitable
Activities
Grants
awarded
Total
Resources
expended
Group
31-Mar-21
31-Mar-20
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Note 12
1,086
435
31
183
-
-
-
1,735
1,767
-
-
-
-
228
-
-
228
434
86
-
42
-
-
764
1,442
2,334
2,543
Staff welfare and amenities 24
-
11
-
-
(30)
633
638
411
Research 70
-
34
-
-
110
1,685
1,899
1,077
Course expenditure 108
-
52
-
-
39
2,711
2,910
300
Depreciation and fixed asset maintenance
Other direct charitable expenditure		 24
-
11
-
-
607
-
642
692
262
-
5
-
-
14
-
281
388
574
-
155
-
-
1,504
6,471
8,704
5,411
Total resources expended 1,660
435
186
183
228
1,504
6,471
10,667
7,612

Staff and governance costs are allocated to raising funds and charitable activities on the basis of relative spend. In 2020/21 grants paid were £2,018k (2019/20: £1,622k) (see note 3.5).

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Addenbrooke’s Charitable Trust Annual Report and Financial Statements 2020/21

Notes to the financial statements

Note 3 Expenditure (continued)

3.1a Support costs

3.1a Support costs
Fundraising staff
Support staff
Charitable activities staff
Depreciation and amortisation
Legal and professional fees
IT costs
Other staff related costs
Office rent
Audit costs
Other governance costs
Allocated to
Fundraising
Charitable activities		 Group
Group
Staff costs
Governance
costs
31-Mar-21
31-Mar-20
£'000
£'000
£'000
£'000
1,022
-
1,022
948
386
-
386
383
252
-
252
215
-
50
50
53
-
15
15
29
-
60
60
65
-
26
26
19
-
19
19
19
-
12
12
25
-
4
4
5
1,660
186
1,846
1,761
1,086
31
1,117

1,096
574
155
729
665
1,660
186
1,846
1,761

Staff and governance costs are allocated to fundraising and charitable activities on the basis of relative spend .

3.2 Charitable activities

Staff welfare and amenities
Research
Course expenditure
Other direct charitable expenditure
Patients' welfare and amenities
Depreciation and fixed asset maintenance		 Unrestricted
Restricted
Group
Group
Funds
Funds
31-Mar-21
31-Mar-20
£'000
£'000
£'000
£'000
1,042
1,292
2,334
2,543
388
250
638
411
1,530
369
1,899
1,077
2,910
-
2,910
300
642
-
642
692
147
134
281
388
6,659
2,045
8,704
5,411

Course expenditure - the board approved a grant of £2.7m of the accumulated balances relating to PGME to CUH for the sole purpose of the operation and development of post graduate medical education.

51

Addenbrooke’s Charitable Trust Annual Report and Financial Statements 2020/21

Notes to the financial statements

Note 3

Expenditure (continued)

3.3 Analysis of staff costs

----- Start of picture text -----
Group Group
31-Mar-21 31-Mar-20
£'000 £'000
Wages and salaries 1,400 1,301
Social security costs 133 122
Other pension costs 127 123
1,660 1,546
The average monthly number of staff in the year was: 40 38
The average monthly full time equivalent number of staff in the year was: 37 35
Analysis of FTE headcount by activity
Governance 7 7
Funds and Grants 3 3
CGHP programme management 3 3
Fundraising 21 21
Fundraising - capital campaign 3 1
37 35
----- End of picture text -----

Employers pension contributions were paid at the rate of 14.4% for those in the NHS scheme (total cost £65k (2019/20 £71k) and 7% for those in the Royal London Group Pension Scheme (total cost £62k (2019/20 £52k).

----- Start of picture text -----
Group Group
31-Mar-21 31-Mar-20
Key Management Personnel £'000 £'000
Total remuneration (including employers pension contributions, and 251 267
employers' national insurance)
----- End of picture text -----

Key Management personnel during the year comprise the Chief Executive, Director of Fundraising and Director of Finance.

Salaries above £60,000 (bands of £10,000) Number of staff
£000
60 - 70
70 - 80		 31-Mar-21
31-Mar-20
3
2
2
2

Employer pension contributions for the year paid on behalf of employees included in the above bands amounted to £33k (2019/20 £25k).

52

Addenbrooke’s Charitable Trust Annual Report and Financial Statements 2020/21

Notes to the financial statements

Note 3 Expenditure (continued)

3.4 Net income/(expenditure) for the year

Group Charity Group Charity
31-Mar-21 31-Mar-21 31-Mar-20 31-Mar-20
£'000
 **£'000 ** £'000 £'000
Depreciation 645 645 670 670
Amortisation 29 29 17 17
Audit fees 16 13 20 16
Other accounting fees paid to auditors 2 1 2 1

3.5 Analysis of grants

Grants were awarded in favour of the partner organisations, principally Cambridge University Hospitals NHS Foundation Trust and the University of Cambridge, to support research activities and innovation in patient care across Addenbrooke’s and the Rosie Hospitals. Grants were made solely to institutions; no grants were made to individuals.

Medical equipment benefitting patients
Patients welfare and education
Staff welfare and education
Course development
Building and refurbishment patients
Building and refurbishment staff
Research salaries and equipment
Institution receiving grant support
during the year 1 April 2020 - 31 March 2021
Cambridge University Hospitals NHS Foundation Trust
University of Cambridge
Other external organisations		 Paid
Group and
Charity
31-Mar-21
£'000
258
72
204
-
291
18
1,175		 Granted
Group and
Charity
Group and
Charity
Group and
Charity
31-Mar-20
31-Mar-21
31-Mar-20
£'000
£'000
£'000
72
366
607
161
155
36
60
625
181
-
2,711
-
29
921
352
-
8
21
1,300
1,685
874
1,622
6,471
2,071
Number of
Total
Amount
grants
amount paid
accrued
awarded
2020/21
31-Mar-21
£'000
£'000
378
1,609
6,296
59
388
654
4
21
19
441
2,018
6,969
2,018

The charity awards a number of grants each year. Many grants are awarded and paid out in the same financial year. However, some grants, especially those relating to research projects or funding for specific posts may span 1-2 years. All grant funding commitments below are considered to be current liabilities. As the charity has control over the award and timing of grants, there is little uncertainty around these payments.

Opening balance at 1 April
Additional commitments made during the year
Amounts paid during the year
Closing balance at 31 March		 2021
2020
£'000
£'000
2,516
2,067
6,471
2,071
(2,018)
(1,622)
6,969
2,516

53

Addenbrooke’s Charitable Trust Annual Report and Financial Statements 2020/21

Notes to the financial statements

Note 4 Fixed assets

4.1 Tangible fixed assets

Group and Charity

----- Start of picture text -----
|||||| |---|---|---|---|---| |Medical|Leasehold|Office|Total| |Equipment|Improvements|Equipment| |£'000|£'000|£'000|£'000| |Cost| |At 1 April 2020|7,560|293|107|7,960| |Additions purchased|-|-|9|9| |Disposals|(1,412)|-|-|(1,412)| |At 31 March 2021|6,148|293|116|6,557| |Accumulated depreciation| |At 1 April 2020|5,949|194|76|6,219| |Provided during the year|607|25|13|645| |Disposals|(1,412)|-|-|(1,412)| |At 31 March 2021|5,144|219|89|5,452| |Net book value| |Net book value at 31 March 2020|1,611|99|31|1,741| |Net book value at 31 March 2021|1,004|74|27|1,105|

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

There are no fixed assets within the subsidiary company.

4.2 Intangible fixed assets

Group and Charity

----- Start of picture text -----
||| |---|---| |Computer| |Software| |£'000| |Cost| |At 1 April 2020|128| |Additions purchased|16| |At 31 March 2021|144| |Accumulated depreciation| |At 1 April 2020|48| |Provided during the year|29| |At 31 March 2021|77| |Net book value| |Net book value at 31 March 2020|80| |Net book value at 31 March 2021|67|

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

54

Addenbrooke’s Charitable Trust Annual Report and Financial Statements 2020/21

Notes to the financial statements

Note 4 Fixed assets (continued)

4.3 Investments

Group and Charity

Market value at 1 April 2020
Additions at cost
Disposals
Realised and unrealised (losses)/ gains
Cash held as an investment
As at 31 March 2021
UK Investments
Non Region Specific
Non-UK Investments
Market value at 31 March 2021		 Investment
Investments listed
on a recognised
properties
stock exchange
31-Mar-21
31-Mar-20
£'000
£'000
£'000
£'000
5,752
9,142
14,894
17,410
-
4,213
4,213
6,254
-
(1,854)
(1,854)
(8,540)
230
989
1,219
(230)
5,982
12,490
18,472
14,894
-

4,577
4,577
6,887
5,982

17,067
23,049
21,781
5,982
10,005
15,987

16,680
-
1,189
1,189
916
-
5,873
5,873
4,185
5,982
17,067
23,049
21,781

Investment properties

The quinquennial professional valuation of investment properties was carried out by Cheffins as at 31 March 2017. The valuation was undertaken on the basis of 'Market Sales Value' and the 'Market Rent Value' as defined by the RICS Valuation- professional Standards. In light of the continuing uncertainty arising from the COVID-19 pandemic, the Trustees have taken additional advice from Cheffins and consider that an adjustment of a 4% increase should be made to the 2019 valuation (adjusted downwards by 7% against the 2017 valuation) at 31 March 2021.

55

Addenbrooke’s Charitable Trust Annual Report and Financial Statements 2020/21

Notes to the financial statements

Note 4 Fixed assets (continued)

4.3 Investments

The Fund for Addenbrooke’s Limited – company registration number 04287054

The Charity owns 100% of the issued share capital of The Fund for Addenbrooke’s Limited, a trading company registered in England and Wales. The share capital of the company is £1. A summary of the results of the subsidiary, The Fund for Addenbrooke’s Limited, are shown below:

Results of FFA

Turnover
Cost of sales
Gross profit
Bank deposit interest
Net result
Retained profit brought forward
Gift aid distribution
Retained profit
carried forward
The aggregate of assets, liabilities and funds is:
Assets
Liabilities
Shareholders' funds
Other administrative expenses		 Year ended
Year ended
31-Mar-21
31-Mar-20
£'000
£'000
811
1,043
(224)
(434)
587
609
-
3
(4)
(3)
583
609
969
969
(583)
(609)
969
969
610
640
(601)
(631)
9
9

Note 5 Debtors

Amounts falling due within one year:
Trade debtors
Amounts owed by group undertakings
Other debtors
Prepayments and accrued income		 Group
Charity
Group
Charity
31-Mar-21
31-Mar-21
31-Mar-20
31-Mar-20
£'000
£'000
£'000
£'000
499
266
549
273
-
583
-
610
167
167
129
128
216
46
295
94
882
1,062
973
1,105

56

Addenbrooke’s Charitable Trust Annual Report and Financial Statements 2020/21

Notes to the financial statements

Note 6 Creditors

----- Start of picture text -----
Group Charity Group Charity
31-Mar-21 31-Mar-21 31-Mar-20 31-Mar-20
£'000 £'000 £'000 £'000
Amounts falling due within one year:
Trade creditors 1,068 1,068 677 677
Other creditors 34 34 35 35
Other taxation and social security 69 55 69 52
Accrual for grants payable (note 3.5) 6,969 6,969 2,516 2,516
Other accruals 200 196 423 417
Deferred income (note 6.1) 17 17 12 12
8,357 8,339 3,732 3,709
----- End of picture text -----

Other creditors include £18k (2020: £17k) in respect of pension contributions to the NHS Pension Scheme and Group Personal Pension Scheme.

6.1 Deferred income

----- Start of picture text -----
Group Group Charity Charity
31-Mar-21 31-Mar-20 31-Mar-21 31-Mar-20
£'000 £'000 £'000 £'000
Balance as at 1 April 12 13 12 13
Amounts released to income from charitable activities:
Fundraising events (12) (13) (12) (13)
Amounts deferred in the year
Fundraising events 17 12 17 12
Balance as at 31 March 17 12 17 12
----- End of picture text -----

Deferred income comprises grant income received for future use, fees paid by course delegates where the course takes place after the year end and fundraising or sponsorship income where the income is received in advance of the event taking place after the year end.

57

Addenbrooke’s Charitable Trust Annual Report and Financial Statements 2020/21

Notes to the financial statements

Note 7 Funds of the Charity

Funds are defined as unrestricted or restricted funds based on guidelines set out by the Charity Commission. Restricted funds are those that are part of legally enforceable trusts, comprise appeal income, or are grants and legacies where the donor, grant-making body or legator has placed an unequivocal restriction on how the income must be used. All other income and donations are classified as unrestricted but with an appropriate designation (such as a particular wards or specialism) that reflects the express wishes of the donor.

Fund balances may be negative when expenditure is made on a project that is expected to be reimbursed at a future date, but where, at the end of the financial year, not all the conditions have been met that would justify this income being recognised within the financial statements. This results in an excess of expenditure over income on some funds. The total deficit fund balances amounted to £159k (2020: £92k).

7.1 Total funds ( see note 13 for 2019/20 comparatives)

----- Start of picture text -----
Total Incoming Resources Transfers Gains and Balance
31-Mar-20 Resources Expended losses 31-Mar-21
£'000 £'000 £'000 £'000 £'000 £'000
Restricted funds 4,902 1,415 (2,210) 1 - 4,108
-
Unrestricted designated funds 18,235 2,717 (6,146) (350) 14,456
Unrestricted funds 2,615 2,532 (2,311) 349 1,219 4,404
25,752 6,664 (10,667) - 1,219 22,968
----- End of picture text -----

7.2 Analysis of net assets between funds ( see note 13 for 2019/20 comparatives)

Group

Fixed assets
Current assets
Liabilities		 Unrestricted
Restricted
Total
Total
Funds
Funds
31-Mar-21
31-Mar-20
£'000
£'000
£'000
£'000
22,545
1,676
24,221
23,602
3,114
3,990
7,104
5,882
(6,799)
(1,558)
(8,357)
(3,732)
18,860
4,108
22,968
25,752

Charity

Charity
Fixed assets
Current assets
Liabilities		 Unrestricted
Restricted
Total
Total
Funds
Funds
31-Mar-21
30-Mar-20
£'000
£'000
£'000
£'000
22,545
1,676
24,221
23,602
3,090
3,987
7,077
5,850
(6,784)
(1,555)
(8,339)
(3,709)
18,851
4,108
22,959
25,743

58

Addenbrooke’s Charitable Trust Annual Report and Financial Statements 2020/21

Notes to the financial statements

Note 7 Funds of the Charity (continued)

7.3 Restricted funds ( see note13 for 2019/20 comparatives)

----- Start of picture text -----
Total Incoming Resources Transfers Gains and Balance
31-Mar-20 Resources Expended losses 31-Mar-21
£'000 £'000 £'000 £'000 £'000 £'000
APPEAL - Oncology Clinic & Day Unit 692 - (18) (38) - 636
LEGACY - Webb: Medical Equipment 580 - - 105 - 685
GRANT- Advanced Bionics- Emmeline 570 230 (800) - - -
APPEAL - Da Vinci Robot 501 - - - - 501
Cambridge Global Health Partnership 335 153 (145) 31 - 374
APPEAL - Emergency Children's Ambulance 198 68 (217) 36 - 85
LEGACY - Gray: Oncology Equipment 169 - - (80) - 89
LEGACY - Percival: Ophthalmology 140 - - - - 140
Surgical Training and Research Centre 136 50 - - - 186
LEGACY - Percival: Urology 134 - (3) - - 131
APPEAL - Breast Cancer Sample Scanner 105 15 (104) (5) - 11
Other restricted (97 funds) 1,342 899 (923) (48) - 1,270
Total restricted funds 4,902 1,415 (2,210) 1 - 4,108
----- End of picture text -----

Details of the material restricted funds are given below:

59

Addenbrooke’s Charitable Trust Annual Report and Financial Statements 2020/21

Notes to the financial statements

Note 7 Funds of the Charity (continued)

7.3 Restricted funds (continued)

7.4 Material designated unrestricted funds ( see note 13 for 2019/20 comparatives)

The Trustees are responsible for approximately 400 designated unrestricted funds, each of which supports a different department, ward, clinic, research or other programme in line with donors’ preferences. Twenty-seven of these funds relate to the Postgraduate Medical Education (PGME) discontinued operations.

Authority for expenditure up to £5,000 against these funds is delegated to fund advisors, who are mostly senior clinical staff with specialist knowledge of the department or purposes supported by the fund. There are a minimum of two Fund Advisors for each fund. Advisors can commit expenditure (which is subject to review by the Charity) for charitable purposes up to £5,000. The majority of expenditure against these funds is therefore dependent on Fund Advisors’ needs and ambitions for their area. The Charity works closely with Fund Advisors to develop their plans and ensure that they meet our charitable objectives.

60

Addenbrooke’s Charitable Trust Annual Report and Financial Statements 2020/21

Notes to the financial statements

Note 7 Funds of the Charity (continued)

7.4 Material designated unrestricted funds (continued)

----- Start of picture text -----
. Total Incoming Resources Transfers Gains and Balance
31-Mar-20 Resources Expended losses 31-Mar-21
£'000 £'000 £'000 £'000 £'000 £'000
MRI Scanners 2,450 209 (200) (153) - 2,306
LEGACY - Geary: Cancer Research Hospital 1,897 356 (16) - - 2,237
Redesignated for COVID - - (555) 1,076 - 521
Scanner Fund 386 - - - - 386
Dermatology 365 1 (3) (21) - 342
Post Graduate Medical Education (27 funds) 3,070 1 (2,731) (6) - 334
LEGACY - Cunningham: Dialysis Unit 938 - (133) (518) - 287
Cancer Scanning Equipment 274 - - - - 274
LEGACY- Barber Eye Unit 283 - (34) (15) - 234
LEGACY - Way: Rheumatology Research 215 - - - - 215
Parkinsons Disease Research 201 4 - (12) - 193
Oncology & Day Unit 210 3 (18) (10) - 185
Oncology R & D Committee 167 - 13 (5) - 175
Linac Equipment 193 219 (243) - - 169
APPEAL - Help your Hospital (COVID-19) 109 707 (479) (178) - 159
ACT on Cancer 126 91 (41) (19) - 157
Cardiac Research 170 - - (15) - 155
Ward Coronary Care Unit CCU/K3/K2 155 11 (2) (10) - 154
CT Scanner 160 91 (99) - - 152
Eleanor Cripps Diabetes & Endocrine 155 - - (9) - 146
LEGACY - Carter: Dr Mayers Eye Clinic 134 8 - - - 142
Cancer Scanning Equipment 114 - - (6) - 108
Biochemistry & Immunology 126 1 (19) (6) - 102
LEGACY - Mynott: Neurology 205 - - (110) - 95
LEGACY - Mynott - MND and Dementia
Research 100 - - (50) - 50
LEGACY - Kemp: Transplant Equipment 103 - - (56) - 47
Research Advisory Committee 104 - (261) 158 - 1
Mynott - Neuro Psychiatrist 250 - (250) - - -
-
Other funds (352 funds) 5,575 1,015 (1,075) (385) 5,130
Total designated funds 18,235 2,717 (6,146) (350) - 14,456
----- End of picture text -----

61

Addenbrooke’s Charitable Trust Annual Report and Financial Statements 2020/21

Notes to the financial statements

Note 7 Funds of the Charity (continued)

7.4 Material designated unrestricted funds (continued)

The following funds had significant movements occurred during the year:

7.5 Unrestricted funds ( see note 13 for 2019/20 comparatives)

----- Start of picture text -----
Total Incoming Resources Transfers Gains and Balance
----- End of picture text -----

Total
Incoming Resources
Transfers
Gains and
Balance
31-Mar-20
Resources Expended
losses
31-Mar-21
Addenbrooke's General Fund
Other funds (4)
Total unrestricted funds		 £'000 £'000 £'000 £'000 £'000 £'000
3,463
1,493
(191)
(440)
-
4,325
(848)
1,039
(2,120)
789
1,219
79
2,615
2,532
(2,311)
349
1,219
4,404

Included within unrestricted funds above is £9k which represents shareholders’ funds in the subsidiary: The Fund for Addenbrooke’s Limited (note 4.3).

During the year, £515k was transferred from the Addenbrooke’s General Fund into grant funds in relation to the 2020/21 grants programme.

62

Addenbrooke’s Charitable Trust Annual Report and Financial Statements 2020/21

Note 8 Related party transactions

One of the Trustees was a non-executive director of Cambridge University Hospitals NHS Foundation Trust (CUH). Detailed below are the transactions with CUH:

Since 2005, Cambridge University Hospitals NHS Foundation Trust (CUH) has acted as payment agent for much of the Charity’s expenditure but reimbursed on a regular basis. At the end of the year, the Charity owed £0.54m (2020: £0.23m) to the NHS Foundation Trust.

During the year, the Charity contributed £8.7m (2020: £5.4m) towards various schemes of Cambridge University Hospitals NHS Foundation Trust.

Cambridge University Hospitals NHS Foundation Trust paid the subsidiary, The Fund for Addenbrooke’s Limited, the wholly owned subsidiary of the Charity, £1m (2020: £1.4m) for the use and maintenance of MRI and CT scanners and Linac Radiotherapy system. The total income received and receivable during the year amounted to £0.8m (2020: £1m).

All profit of the subsidiary, the Fund for Addenbrooke’s Limited, is distributed to Addenbrooke’s Charitable Trust. The net profit earned by the subsidiary for the year to 31 March 2021 was £583k (2020: £609k). During the year, distributions under gift aid totalling £609k (2020: £939k) were paid to Addenbrooke’s Charitable Trust. There were no other related party transactions with the subsidiary during the year.

None of the remaining Trustees or members of the key management staff, or parties related to them, have undertaken any material transactions with the Charity.

A total of £nil (2020: £nil) was reimbursed to Trustees for expenses in the year.

During the year, Trustees and their related parties made donations (including Gift Aid) totalling £7k (2020 £6k).

The Charity paid £3k (2020: £3k) in respect of Trustees’ liability insurance.

Note 9 Operating lease commitments

At 31 March 2021 the group had total commitments under non-cancellable operating leases:

Within one year
Within two to five years
Over five years		 31 March 2021
31 March 2020
£000
£000
18
17
-
17
-
-
Land and buildings
18
34

A new 15 year lease operating lease effective from 1 April 2017 was signed by the board on the 15 May 2018.

The operating lease relates to administrative offices located on the CUH campus.

The first break clause can be exercised 1 April 2022 with 12 months notice and annually thereafter until the end of the lease .

63

Addenbrooke’s Charitable Trust Annual Report and Financial Statements 2020/21

Notes to the financial statements

Note 10 Legacies

At the end of the year, the Charity had approximately £0.15m in its legacy pipeline (including part received gifts) covering 34 individual legacies which did not meet the recognition criteria due to uncertainty over their value, timing of their receipts or conditions attached to the gifts of the various legacies. This includes 12 legacies where we have been unable to give any valuation through lack of information received to date.

Note 11 Comparative figures: Statement of financial activities 31 March 2020

----- Start of picture text -----
Unrestricted Discontinued Total Restricted Group
Funds Operations Unrestricted Funds 31-Mar-20
Funds
£'000 £'000 £'000 £'000 £'000
INCOME FROM: Note
Donations 2.1 1,073 - 1,073 577 1,650
Legacies 1,791 - 1,791 87 1,878
Other grants receivable 122 - 122 1,305 1,427
Other trading activities 2.2 417 - 417 239 656
Trading subsidiary 4.3 867 - 867 176 1,043
Investments 2.3 469 - 469 - 469
Charitable Activities 2.4 117 - 117 27 144
Total income 4,856 - 4,856 2,411 7,267
EXPENDITURE ON:
Raising funds - costs of the charity 3.1, (1,583) - (1,583) (184) (1,767)
Raising funds - costs of the subsidiary 3.1,4.3 (261) - (261) (173) (434)
Charitable activities 3.1, 3.2 (3,201) (155) (3,356) (2,055) (5,411)
Total Expenditure (5,045) (155) (5,200) (2,412) (7,612)
Net losses on investment assets 4.3 (230) - (230) - (230)
Net income (419) (155) (574) (1) (575)
Transfers between funds 13 (10) - (10) 10 0
Net movement in funds (429) (155) (584) 9 (575)
Reconciliation of funds:
Total funds brought forward at 1 April 2019 20,623 811 21,434 4,893 26,327
Total funds carried forward at 31 March 2020 13 20,194 656 20,850 4,902 25,752
----- End of picture text -----

64

Addenbrooke’s Charitable Trust Annual Report and Financial Statements 2020/21

Notes to the financial statements

Note 12 Comparative figures: Resources expended 31 March 2020

Raising funds - costs of the charity
Cost of raising funds
Raising funds - costs of the subsidiary
Cost of raising funds
Charitable activities
Patients' welfare and amenities
Staff welfare and amenities
Research
Course expenditure
Depreciation and fixed asset maintenance
Other direct charitable expenditure
Total resources expended		 Staff costs
Direct
fundraising
costs
Governance
costs
Investment
management
costs
Trading
subsidiary
costs
Expenditure
on
Charitable
Activities
Grants
awarded
Total
Resources
expended
31-Mar-20
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
1,043
495
53
176
-
-
-
1,767
-
-
-
-
434
-
-
434
135
-
76
-
-
1,337
995
2,543
22
-
12
-
-
175
202
411
57
-
32
-
-
114
874
1,077
16
-
9
-
-
275
-
300
37
-
21
-
-
634
-
692
236
-
12
-
-
140
-
388
448
-
199
-
-
2,675
2,071
5,411
1,491
495
252
176
434
2,675
2,071
7,612

Staff and governance costs are allocated to raising funds and charitable activities on the basis of relative spend.

65

Addenbrooke’s Charitable Trust Annual Report and Financial Statements 2020/21

Notes to the financial statements

Note 13 Comparative Figures: Funds of the Charity

13.1 Total funds

13.2 Analysis of net assets between funds

66

Addenbrooke’s Charitable Trust Annual Report and Financial Statements 2020/21

Notes to the financial statements

Note 13 Comparative Figures: Funds of the Charity

13.3 Restricted funds

67

Addenbrooke’s Charitable Trust Annual Report and Financial Statements 2020/21

Notes to the financial statements

Note 13 Comparative Figures: Funds of the Charity

13.4 Material designated unrestricted funds

68

Addenbrooke’s Charitable Trust Annual Report and Financial Statements 2020/21

Notes to the financial statements

Note 13 Comparative Figures: Funds of the Charity

13.5 Unrestricted funds

13.6 Funds relating to Discontinued Operations

Discontinued Operations are no longer disclosed separately in the Statement of Financial Activities. The following transfer was made to integrate the brought forward balances from 2019/20:

----- Start of picture text -----
Total
Unrestricted Discontinued Unrestricted
Funds Operations Funds
£k £k £k
Total unrestricted funds carried forward 31 March 2020 20,194 656 20,850
(as previously disclosed)
Transfer 656 (656) -
Total unrestricted funds brought forward 1 April 2020 20,850 - 20,850
----- End of picture text -----

Note 14 Company limited by guarantee

The Charity is a company limited by guarantee and has no share capital. The members of the Charity are the Trustees listed on page 29. In the event of the Charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the Charity.

69