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2023-07-31-accounts

THE MEDWAY LEAGUE OF FRIENDS

CHARITY REGISTRATION NO: 1172065

REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2023

CONTENTS PAGES
Trustees' Report 1 to 6
Auditor's Report 7 to 9
Statement of Financial Activities 10
Balance Sheet 11
Cash Flow Statement 12
Notes to the Financial Statements 13 to 18

THE MEDWAY LEAGUE OF FRIENDS TRUSTEES' REPORT

The trustees present their sixth report with the financial statements of the charity for the year ended 31 July 2023.

ADMINISTRATIVE DETAILS

Charity registration number 1172065
Principal address Medway Maritime Hospital
Windmill Road
Gillingham
Kent
ME7 5NY
Trustees Mrs J Harsent - chairperson
Mrs E Norman
S Towsey
C H Silk
Mrs M Cogger
Ms H Belcher
S Dansie
T Higgins
P McKenna - resigned 11 September 2023
Ms D Peers
J C H Weir - resigned 14 November 2022
Auditors Kreston Reeves
Montague Place
Quayside
Chatham Maritime
Chatham
Kent, ME4 4QU
Bankers Lloyds Bank plc
142-146 High Street
Chatham
Kent, ME4 4DQ

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing Document

The charity is a charitable incorporated organisation registered with the Charities Commission on 15 March 2017 and governed by its constitution adopted 8 March 2017.

Appointment of Trustees

Trustees are appointed by the members at the annual general meeting and their number shall not be less than four. New Trustees would require some experience of the sector in which the charity operates and be appropriate for the League.

1

THE MEDWAY LEAGUE OF FRIENDS TRUSTEES' REPORT

Organisation and Decisions

The trustees meet at least four times a year to manage the League's affairs. In the 2022/3 year the trustees met eight times, the first four times by video link and the rest in person. This Committee consists of a Chairman, Vice Chairman, Treasurer and Secretary and between one and eleven other persons. No person shall be a member of the Committee who is not a member of the League itself.

The Committee are assisted by managers and organisers of the League's shops and a representative of the Medway NHS Foundation Trust. An operations manager has day to day control over its employed staff and the many volunteers.

Affiliations

The League is a member of Attend, which exists to promote and develop the role of volunteers in our health and social services throughout the UK.

OBJECTIVES AND ACTIVITIES

Objectives

The objects of the charity are the relief of sickness and the promotion of the good health and wellbeing of patients of NHS services in Medway, in particular the patients of the Medway Maritime Hospital Trust, through the provision of grants, items and services, funded where possible by the work of volunteers.

Public Benefit

In accordance with the Charities Acts and Regulations, the trustees have had due regard to the guidance published by the Charity Commission on the requirement that the objectives and work undertaken by the League are in line with charitable objects and do provide benefit for the public.

In 2018, the charity took over the activities previously carried on by the 'Medway League of Friends' whose original aim was to provide those 'little extras' for patients and staff in the then local hospitals (mainly the Medway Maritime Hospital but also at Wainscott) that the NHS cannot always provide. Over time those 'little extras' have turned into vital pieces of medical equipment, furniture and other amenities. The difference, that the charity intends to continue through its activities, is to help speed patients' recovery and get them back to their homes and loved ones and to do this wherever possible though the services of volunteers from the community.

Aims and Activities

The main objective for the year under review was to continue the provision of services through sales at the League's shops at the Medway Maritime Hospital.

During the year the League operated two shops at the Medway Maritime Hospital: the main shop / refreshment area and a 24-hour kiosk in A&E, so that patients, visitors and hospital staff can always get a snack or a hot drink whatever the time of day or night. The main activity of the year under review was to fully refurbish the shop with measures taken to provide an alternative service while the work took place.

Hospital Radio Medway is a part of the League, and broadcasts 24 hours of programmes each and every day, including record requests, themed music and items of local interest to the patients.

The League makes significant use of volunteers in the course of undertaking its charitable and income generating activities. The volunteers carry out many of the duties required to operate the shop. During the year under review the League continued connect with the community by providing Work Experience and Duke of Edinburg placements. Some young people choose to stay on as volunteers after their placement ends. The League has also established a link to a local employment agency to offer work experience to people wanting to get back into employment. Basic training courses are offered to acquire certified skills to take forward.

2

THE MEDWAY LEAGUE OF FRIENDS TRUSTEES' REPORT

Impact Statement

In normal times the League devotes all its surplus funds to grants to the NHS. In 2022/23 the Refurbishment Project absorbed some of the surplus, but it was still possible to make 5 grants, totalling £120,418. The main item covered the replacement of 15 outdated defibrillators throughout the Hospital at a cost of £94,935. Details of the other four are shown below.

Baby Simulation Manikins – Neonatal Unit - £5,545

A request was received by the League from the Neonatal Unit for a baby simulation manikin. Whilst simulation manikins are available in the hospital for adults and full-term babies, there was no such training aid for pre-term babies. Updated framework guidance advised babies as young as 22 weeks should be considered for resuscitation, but staff require appropriate training. The League agreed to fund this equipment which is now in use on the Oliver Fisher Neonatal Unit.

2 x Jaundice Meters - Maternity/Community - £7,800

The League was asked to consider a bid for two replacement jaundice meters to be used to detect jaundice in neonates. The meters which were in use were often being repaired/serviced and, therefore, not available for the team.

The Community Senior Sister advised that the meters ‘are a very big help in providing a noninvasive way of testing our babies for jaundice. They provide reassurance for our families, and also us as care providers”.

3 x Gynae Couches

- - Colposcopy Department £11,315

A request was received from the Colposcopy Department for the League to consider funding three replacement patient couches. It was noted the couches in use were non height-adjusting and the wheels were beyond repair.

The couches were used for TV scan examinations and those in use did not have a removable lower section to enable the scans to be undertaken. The Manager of the department advised the replacement couches will be in constant use for scans and enable the service to be compliant with national recommendations and best practice.

3

THE MEDWAY LEAGUE OF FRIENDS TRUSTEES' REPORT

Pharmacy Refrigerator for the Endocrine Department - £825

The Manager and Consultant Physician working in the Endocrine Department asked the League if members would consider funding a refrigerator to hold special medicines which are used for dynamic function tests. These tests are used to help diagnose some complex endocrine conditions and enable staff to start the right treatment sooner; also to monitor patients who already have a diagnosis and are on special treatments and for tests to be undertaken in the department under the direct supervision of the endocrine team.

Donations

The League’s income is supplemented by donations. These picked up with the return to more normal conditions. They totalled £11,856 including those for Hospital Radio, significantly ahead of the 2021/22 figure.

Achievements

The League of Friends

Following the agreement with the Hospital Trust of a 10-year lease for the Main Shop and adjacent seating area (May 2022), planning began in earnest for a complete refurbishment of the retail operation. The aim was to provide a state of the art refreshment facility with seating and a more accessible and streamlined retail operation within an attractive environment. Finance was entirely provided by the League, drawing upon funds previously earmarked for a separate coffee shop which had to be abandoned because of the pandemic.

Planning and preparation for the refurbishment took until February 2023, and the project began in March. The Hospital Trust allowed the use of space in the foyer opposite the site for a pop-up shop offering a basic refreshments service. This proved very popular, allowed the continued employment of staff and volunteers, and covered its costs. The night service in the A&E kiosk remained open throughout the refurbishment until it could be transferred to work from the night service hatch in the new shop.

The refurbishment lasted 14 weeks and required a great deal of work from the Staff Management Team, who forged a strong working relationship with the contractor. The new facility, named ‘The First Rate Shop and Cafe’ opened on 14 June. It has been well received, and traded very promisingly for the remaining six weeks of the year.

Hospital Radio Medway ("HRM")

The radio service continues to reach all areas of the Hospital enabling Patients, Staff and Visitors access to bespoke programmes consisting of music and features of local interest. HRM's streaming figures continue to show steady growth since the installation of a dedicated text request line. By working with local charities, Departments within the Hospital and by publicising HRM it is possible to recruit new Members in order to increase the programmes currently on offer.

Hospital Radio Medway is self-funding and seeks grants and donations from many sources in order to keep the Station on air while being aware of the financial commitment by ring-fencing funds required for the duration of the licences in place. A partnership with local Rotary Clubs funded the purchase of a quantity of DAB/FM radios for the Wards to increase the potential audience.

As Members of The National Association of Hospital Broadcasting Organisations HRM receives support and training for its Members along with recognition of excellence for the Member Stations as well as individual Members.

4

THE MEDWAY LEAGUE OF FRIENDS TRUSTEES' REPORT

Progress against objectives

Progress on the objectives which the Trustees set for 2022/23 was as follows:

Re-started in July 2023 with a commitment to grants for capital equipment of £124,000.

3 Enhance communications Talks to local Groups in Medway continued. Work Experience and Duke of Edinburgh placements have continued. Screens in the new shop and café are used to publicise the League’s activities. The League has taken up the offer from the Hospital Trust to include League information on the two screens installed in the foyer. The League continues to use Hospital Trust’s newsletters and social media to publicise the League and Hospital Radio.

There has been no progress on succession planning which has been carried over into 23/24 as part of the Objective to Improve Governance.

Trustees’ training resumed, with a Training Day facilitated by Attend on 19 October 2022. A majority of Trustees also attended a training seminar given by Kreston Reeves (25 July 2023) on Charity Trustees’ Responsibilities.

Internal League policies continue to come up for regular review. The annual internal financial review has taken place and work on the Risk Register is ongoing to include the new shop/cafe. It will be kept under review.

The League complied with recent legislation banning all use of all single use plastics in its operation.

Objectives 2023/24

Many of the 2022/23 Objectives related to continuing activities and have been renewed for 2023/24. The full list set by the Trustees is:

There are specific goals for these Objectives. Responsibility for each of the latter is assigned to an individual Trustee, and progress is regularly reviewed at Trustees’ meetings.

5

Thtr finarHyal POBlbon is Set fArt on paw 11 to 18. Ir¢¢m• frtyn the 4oaybibe8 cijwating inugosgd des￿te V)& disrupb.on cauJ by the rebjrbishmerrt of the retaivcafe Area ￿1 do8•d tr a wio(l. Sales totsmed £1,486.418 ￿)mper￿ to £1,289,9)2. GTo•s mwgifw cn $￿e0 frlffi 41.4% to 38.7%. Inrea￿ in staffing and c4heT cojts induding those reS￿ling from Ihe shop refvrbishment led to a CC￿￿.￿tion from th• shops of£191.38512022.. £243,850). Wth grants to the Methw NHS Founda￿0￿ TnJ8t of£120.41& there 8 8urplu¥ of £83.185. Thls InfJ•8s8d the thartys not a$8ts At the end ofth year tr• £9)9.￿. The League ha8 S￿t £461,601 cn the fabrfc of tho 8hcy and •q￿pMart AJ A ra8U￿ ¢¥•1 at b8nk and Short temi monies on deKx)Br( fdl frorn £841,e08 to £509.656. Th•r• ar• resltlct•d knds for Ho8ytsI Radio, aT8 eWaln•d In th• n¢)ta8 to th• flngnid st•tomwrt Lost yèar tho Tw8tee8 agreed that a D•iiWvJ ReBeNe totalling £525.CIJO wjfficaerrt to c¥y4w th• rnlurbl8hmenl woject and fumi6h a prtivision for costs in the event of bttsiness inttrttupb"c¥). A significant pOTty￿ of ￿.$ sum has been spent on th¢ shop. Monies sponl on Ihe stru(luffj of fv shop are being depr￿Jalert over the length of the lease granw to the Leag￿ by the Ho6￿tal. and as such the net t4Jok value of £380.731 1$ warde(l as ￿nty"n￿1ng Oesignated reserves. As grnnt maklng ha8 resum•d to the Ph>$￿1 frr 8pedfi¢ pioJed$ 8nd lor 833ets. Sums cornmiited by the Truste8s trArt nc inDJrred at the year end, whith tot81 £123.892, heve t)een allcrated to De8ignabJ rose￿S to Cover them. Al remaining 8ufF4Lrt be ftytrt• b•rfft ofth• Hosw 8nd NHS Pali The tN8tee8 are resp￿sItIe ts preporng Ihe Rewt of the Tw6tees and the flnandal 8t8m•nts In •c£¢rdanc4 vllh applicable law and United ￿ngdeffi Ac£oLmkn9 Standards (Unrt•d ￿'AgdoM G•rt•r8lly Acc•Fed A(oJuntir¥J Pracce}. Th• law a￿11￿￿1￿ to ¢•rfts•s In Engknd and Wale8 TewireB the InJ8tee8 to pware ￿n￿cle1 Stat￿￿ for •ath finonrial year vknith give a Inje and fair of th• st8t8 of affAirs of Ihè tharity and of ts inc¥)M￿9 resourc￿ and a￿le￿￿On of r•swrc4s ofthe th?rity for that perio(L In Preparing these financ4al statern￿ts the truste¥$ ¥re r¢qwred to.. 8elec surtable arLounling Oic4eB and then appty them consl8W. obBeTht the m&thods and princiFl8$ in lh• Ch8ritsg$ SORP," me judgements and estimates that are reasonabbe and prudert . stsle 8ppllcthe accounting stsnd8rd& h8VO teen 10Th￿￿1. sutyeLt to ony matwlal dep8iJm dlKJo8ed and explained in Ihe financ481 stAt8m8nts, ard mare the fin8nrA8t Statements cm the ￿r￿j CCI￿rn ￿818 18 i￿ppr￿I to y•wme that the tharity tinue in t￿Ina$s. The trust•es ar• r•spMbl• for k•eping proper accounting reaxd8 that thsd(Ise ¥￿th reasonat4e a¢cur8ry at tirne th8 financial pwtion of the charity and en￿e them to ensure that fin¥nryal $ternents c¢ynpty v￿th the Chanties Act 2011. th$ Charity IA¢¢>xJnts and Reports) RegulabC￿8 2LYJ8 and the pThisions ol the cC￿StitutIon. They are 8180 respThn8iNe for othef Irreg￿arI￿es. •nd Si￿•￿ on th8lT behair 202F Mrs J H8rswt Cljal

INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF THE MEDWAY LEAGUE OF FRIENDS

Opinion

We have audited the financial statements of The Medway League of Friends (the 'charity') for the year ended 31 July 2023, which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting practice).

The financial statements have been prepared in accordance with 'Accounting and Reporting by Charities' preparing their accounts in accordance with the Financial Reporting Standards applicable in the UK and Republic of Ireland (FRS 102) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has been withdrawn.

This has been done in order for the accounts to provide a true and fair view in accordance with the Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2019.

In our opinion the financial statements:

Basis of 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 Auditors responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

Other information

The trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our Auditor's report thereon. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit of 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.

7

INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF THE MEDWAY LEAGUE OF FRIENDS

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the Trustees' Responsibilities statement, the trustees are responsible for the preparation of financial statements which 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 charity'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 charity or to cease operations, of have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

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

Irregularities, including fraud, are instances of 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.

Capability of the audit in detecting irregularities, including fraud

Based on our understanding of the Charity and the sector as a whole, and through discussion with the Trustees and other management (as required by auditing standards), we identified that the principal risks of non-compliance with laws and regulations related to health and safety, anti-bribery and employment law. We considered the extent to which noncompliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Charities SORP (FRS 102) Second Edition (released October 2019), and other relevant charity legislation. We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit. We evaluated Trustees' and management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks related to and determined that the principal risks were related to posting inappropriate journal entries to increase revenue or reduce expenditure and management bias in accounting estimates and judgemental areas of the financial statements. Audit procedures performed by the engagement team included:

8

INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF THE MEDWAY LEAGUE OF FRIENDS

Auditor's responsibilities for the audit of the financial statements (continued)

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

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

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 charity's trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an Auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and its trustees, as a body, for our audit work, for this report, or for the opinions we have formed.

Kreston Reeves LLP Statutory Auditor

Date: 23 May 2024

Montague Place Quayside Chatham Maritime Chatham Kent, ME4 4QU

Kreston Reeves LLP are eligible to act as auditors in terms of section 1212 of the Companies Act 2006.

9

THE MEDWAY LEAGUE OF FRIENDS STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 JULY 2023

Notes
INCOME AND ENDOWMENTS
Donations and legacies
-
Donations
-
Grants
Fundraising
Investment income
-
Interest on deposit accounts
Income from charitable activities
-
Operation of shops and trolley
TOTAL INCOME
EXPENDITURE
Costs of raising funds
Expenditure on charitable activities
3
TOTAL EXPENDITURE
NET INCOME
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD		 Unrestricted
Restricted
Total
Total
fund
funds
2023
2022
£
£
£
£
10,606
1,250
11,856
6,486
-
2,500
2,500
7,947
1,817
-
1,817
1,029
4,728
-
4,728
188
1,466,418
-
1,466,418
1,289,902
1,483,569
3,750
1,487,319
1,305,552
1,521
-
1,521
768
1,405,499
(2,866)
1,402,633
1,291,585
1,407,020
(2,866)
1,404,154
1,292,353
76,549
6,616
83,165
13,199
821,767
5,002
826,769
813,570
898,316
11,618
909,934
826,769

All income and expenditure derive from continuing activities.

The Statement of Financial Activities includes all gains and losses recognised in the year.

The notes on pages 13 to 18 form part of these financial statements.

10

FIXED ASSET8 T￿gIble fixed 11 18,058 CURRENT ASSETS 25,481 38,957 121,877 2.270 250.180 591.428 Inves¢mwts Cath at bank and kn hand 574.074 878.884 CREDITORS: •mount• l•lllng du• T*lthln ¢)n• y••r 72.871 1381 43,9e7 T&xkn'on and SOLY￿ wrlty 12,523 120,69) 86.173 453.384 810.711 TOTAL ASSEf8 LESS CURRENT UAgILrnE8 826,789 FUNDS OF THE CHARiri Unresthtaed income fund Re8tricted fvndl 12 12 898,316 821.787 TOTAL CHAPITh FUPIDS Th• note8 ¢>n 13 to 18 fomi wt ofthw flnarrfw fytat•merrt•. and sign￿1 on thwr beh#K / (- IbLy 201 Mrs J HThrt Chaiw

THE MEDWAY LEAGUE OF FRIENDS CASH FLOW STATEMENT FOR THE YEAR ENDED 31 JULY 2023

Cash flows from operating activities:
Cash used by operations (see below)
Cash flows from investing activities:
Purchase of tangible fixed assets
Interest received
Net cash provided from (used in) investing activities
Change in cash and cash equivalents in the
reporting period
Cash and cash equivalents at the beginning of the
reporting period
Cash and cash equivalents at the end of the
reporting period		 2023
£
124,921
(461,601)
4,728
(456,873)
(331,952)
841,608
509,656		 2022
£
(15,594)
-
188
188
(15,406)
857,014
841,608

RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES

Net income for the reporting period (as per the statement of
financial activities)
Adjustments for:
Depreciation
Interest received
Decrease in stocks (2022 : increase)
Increase in debtors (2022 : decrease)
Increase in creditors (2022 : decrease)
Net cash used by operating activities		 2023
£
83,165
21,109
(4,728)
7,545
(36,687)
54,517
124,921		 2022
£
13,199
5,362
(188)
(6,823)
78
(27,222)
(15,594)

12

THE MEDWAY LEAGUE OF FRIENDS NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

1 STATUTORY INFORMATION

The Medway League of Friends is registered in England and Wales under the Charities Act 2011 as a charitable incorporated organisation. The Charity's registered number and registered office address can be found within the Trustees' Report.

2 ACCOUNTING POLICIES

(a) Basis of accounting

The financial statements of the charity, which is a public benefit entity under FRS102, have been prepared in accordance with the Charities SORP (FRS 102) "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)", Financial Reporting Standard 102 "The Financial Standard applicable in the UK and Republic of Ireland" and the Charities Act 2011. The financial statements have been prepared under the historical cost convention.

The presentation currency of the financial statements is the Pound Sterling (£), and all amounts are rounded to the nearest Pound.

(b) Going Concern

When preparing the financial statements, the Trustees have assessed whether there are significant doubts about the charity's ability to continue as a going concern. There are no material uncertainties of which the Trustees are aware in making their assessment.

The Trustees consider that the charity has sufficient cash reserves to enable it to meet its obligations as they fall due for a period of at least 12 months from the date of signing of these financial statements. As such, the Trustees are satisfied that the charity has adequate resources to continue to operate for the foreseeable future and they continue to adopt the going concern basis for preparing these financial statements.

(c) Critical accounting estimates and areas of judgement

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations on future events that are believed to be reasonable under the circumstances.

There are no estimates or assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities in the balance sheet. The League plans to redevelop its Main Shop used for its activities and a Designated fund has been set up to cover the anticipated costs. The amount is the best estimate at the time of preparing these financial statements.

(d) Income and debtors

Voluntary income, which includes donations, gifts and legacies, and fundraising income are recognised where there is entitlement, certainty of receipt and the amount can be measured with sufficient reliability.

Investment income is recognised on a receivable basis and arises from interest bearing deposit accounts.

Income from charitable activities includes the sales from the League's shops at the Medway Maritime Hospital. All amounts exclude value added tax.

Debtors are recognised at the settlement amount. Prepayments are valued at the amount prepaid.

(e) Volunteers and donated services and facilities

No value is incorporated into these financial statements for the services provided by volunteers or where services are provided to the charity as a donation that would normally be purchased from suppliers.

13

THE MEDWAY LEAGUE OF FRIENDS NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

2 ACCOUNTING POLICIES (continued)

(f) Expenditure and liabilities

Expenditure is recognised when a liability is incurred. Grant payments are recognised when a liability or constructive obligation arises that results in the payment being unavoidable.

Costs of generating funds are those costs incurred in attracting voluntary income.

Charitable activities include expenditure associated with the League's shops and trolley and grants of equipment and services to the Medway NHS Foundation Trust and others. The expenditure includes both the direct costs and support costs relating to these activities.

Governance and support costs include central functions and have been allocated to activity cost categories on a basis consistent with the use of resources.

Liabilities are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.

Liabilities are recognised at the amount that the charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for good or services it must provide.

(g) Financial instruments

The charity enters into basic financial instruments that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, loans to and from banks, and other third parties. Basic financial instruments are recognised at amortised cost, with changes recognised in the statement of financial activities.

(h) Tangible fixed assets

Fixed assets are stated at historical cost less accumulated depreciation. Depreciation is provided on all tangible fixed assets at rates calculated to write off the cost of each asset over its estimated useful life at the following rates: Land and buildings - over the length of the lease Hospital radio equipment - 10% on cost Shop equipment - 11%, 15% or 20% on cost Computer equipment - 33% on cost

Assets which cost less than £1,000 are not capitalised.

(i) Stocks Stocks are included at the lower of cost and net realisable value. Stocks consists of goods for resale from the shops and trolley.

(j) Cash at bank and in hand Cash at bank and in hand includes cash and deposits that are available to finance the League's day to day operations and have a maturity of three months or less from the date of acquisition, excluding amounts held as part of an investment portfolio.

(k) Funds structure

The charity has restricted income funds to account for situations where a donor requires that a donation must be spent on a particular purpose or where funds have been raised for a specific purpose.

Other funds are unrestricted income funds. Within those amounts the Trustees create Designated funds for particular purposes, such as the redevelopment of the Main Shop. Also the trustees receive requests from Medway NHS Foundation Trust to make donations and purchase equipment for the Trust. Once the trustees agree that they will offer financial support, a transfer is made to a designated fund for that purpose.

Unrestricted income funds not designated are general reserves available to meet the League's objectives.

14

THE MEDWAY LEAGUE OF FRIENDS NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

3 EXPENDITURE ON CHARITABLE ACTIVITIES

Shop purchases for resale
Wages and salaries (see note 7)
Purchase of equipment and other
donations (see note 6)
Bank and card charges and cash
processing fees
Travel and motor expenses
Depreciation
Equipment maintenance and
computer costs
Printing postage and stationery
Telephone and other costs
Governance and support costs
(see note 4)		 Operation of
shops and
Grants
Hospital
Total
Total
trolley
payable
Radio
2023
2022
£
£
£
£
£
898,207
-
-
898,207
755,925
272,756
-
-
272,756
227,242
-
120,418
-
120,418
231,924
20,903
-
-
20,903
21,183
5,007
-
-
5,007
4,589
20,228
-
881
21,109
5,362
16,908
-
1,347
18,255
12,628
6,222
-
-
6,222
5,050
17,499
-
3,222
20,721
8,298
17,303
1,657
75
19,035
19,384
1,275,033
122,075
5,525
1,402,633
1,291,585

The expenditure has been allocated to restricted and unrestricted funds as follows:

Unrestricted
Restricted		 1,405,499
1,281,664
(2,866)
9,921
1,402,633
1,291,585

4 GOVERNANCE AND SUPPORT COSTS

Audit fees
Accountancy costs
Attend subscription and insurance
Shop development
Legal and professional fees
Staff entertaining
Rent
Sundries		 Charitable
Total
Total
activities
Governance
2023
2022
£
£
£
£
-
7,440
7,440
4,150
-
1,985
1,985
6,020
1,445
-
1,445
1,609
-
-
-
3,763
-
1,523
1,523
338
5,015
-
5,015
2,075
1,057
-
1,057
803
570
-
570
626
8,087
10,948
19,035
19,384

5 SUPPORT FOR CHARITABLE ACTIVITIES

This table shows the income arising from and the costs for the operation of the shops and trolley and the surplus that arises therefrom which provides additional support for charitable activities. In the previous year the Government provided grants to support jobs, without which there would have been a loss.

Income
Costs
Net funding for other activities		 2023
£
1,466,418
(1,275,033)
191,385		 2022
£
1,289,902
(1,046,052)
243,850

15

THE MEDWAY LEAGUE OF FRIENDS NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

6 GRANTS PAYABLE

7 2023
2022
£
£
Medway NHS Foundation Trust
120,418
231,924
£
£
15 defibrillators - throughout the hospital
94,935
-
3 gynae couches - Colposcopy department
11,315
-
2 Jaundice meters - Maternity and community use
7,798
-
Baby simulation manikins - Neonatal unit
5,545
-
Pharmacy refrigerator - Endocrine department
825
-
Fibroscan - Gastroenterology (Outpatient)
-
88,150
Infusion Pumps (Dolphin & Panda) - Paediatrics
-
46,050
3 Patient Monitors - Delivery suite
-
30,754
Contribution towards memorial garden
-
30,000
2 Criticool Units - Neonatal
-
27,516
75 Asset Monitoring Tags for falls equipment - Falls Service
-
9,454
STAFF COSTS AND NUMBERS
2023
2022
£
£
Wages and salaries
258,567
215,903
Social security costs
10,114
7,987
Employer's contribution to defined contribution pension scheme
4,075
3,352
272,756
227,242
Grants to Medway NHS Foundation Trust are for the purchase of equipment and for the funding of various projects
and services. The main items funded are:		 2022
£
231,924
2022
£
215,903
7,987
3,352
227,242

The average monthly number of employees during the year was 17 (2022 : 16). No employees received emoluments in excess of £60,000.

There are no key management personnel other than the trustees in this, or the previous, year.

8 TRUSTEE REMUNERATION

None of the trustees have been paid any remuneration or received any other benefits. Three trustees have been reimbursed £571 for expenses incurred on behalf of the League (2022 : two trustees reimbursed a total of £444). This was in relation to reinbursement of meeting expenses.

9 RELATED PARTY TRANSACTIONS

There are no related party transactions in the current year or previous year.

10 TAXATION

The League is a registered charity and no provision is considered necessary for taxation.

16

THE MEDWAY LEAGUE OF FRIENDS NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

11 TANGIBLE FIXED ASSETS

Cost
- at 1 August 2022
- additions
- disposals
- at 31 July 2023
Depreciation
- at 1 August 2022
- charge for year
- disposals
- at 31 July 2023
Net book values
- at 31 July 2023
- at 31 July 2022		 TOTAL
£
£
£
-
36,924
36,924
389,839
71,762
461,601
-
(25,798)
(25,798)
Land and
buildings
Fittings and
equipment
389,839
82,888
472,727
-
20,866
20,866
9,108
12,001
21,109
-
(25,798)
(25,798)
9,108
7,069
16,177
380,731
75,819
456,550
-
16,058
16,058

12 STATEMENT OF CHANGES IN EQUITY

CURRENT YEAR
Balance at 1 August 2022
Income
Expenditure
Allocation of funds
Balance at 31 July 2023
The funds held at the year-end date are as
- Fixed assets
- Cash
- Net other current assets
- Total funds
PRIOR YEAR
Balance at 1 August 2021
Income
Expenditure
Allocation of funds
Balance at 31 July 2022
The funds held at the year-end date are as
- Fixed assets
- Cash
- Net other current assets
- Total funds		 General
Designated
Unrestricted
Restricted
fund
fund
funds
funds
Total
£
£
£
£
£
296,767
525,000
821,767
5,002
826,769
1,483,569
-
1,483,569
3,750
1,487,319
(1,407,020)
-
(1,407,020)
2,866
(1,404,154)
20,377
(20,377)
-
-
-
393,693
504,623
898,316
11,618
909,934
follows:
69,659
380,731
450,390
6,160
456,550
258,429
123,892
382,321
5,458
387,779
65,605
-
65,605
-
65,605
393,693
504,623
898,316
11,618
909,934
General
Designated
Unrestricted
Restricted
fund
fund
funds
funds
Total
£
£
£
£
£
802,773
-
802,773
10,797
813,570
1,301,426
-
1,301,426
4,126
1,305,552
(1,282,432)
-
(1,282,432)
(9,921)
(1,292,353)
(525,000)
525,000
-
-
-
296,767
525,000
821,767
5,002
826,769
follows:
9,008
-
9,008
7,050
16,058
66,428
525,000
591,428
-
591,428
221,331
-
221,331
(2,048)
219,283
296,767
525,000
821,767
5,002
826,769

17

THE MEDWAY LEAGUE OF FRIENDS NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023

12 STATEMENT OF CHANGES IN EQUITY (continued)

The Designated fund represents the net book value of the land and buildings shown in note 11 resulting from the shop refurbishment plus commitments made before the year-end date to the Medway NHS Foundation Trust for grants.

The restricted funds are in relation to Hospital Radio and represent several grants for capital equipment and running costs. The balance carried forward at the year-end date represents the net book value of the equipment funded (and included in fixed assets in note 11) and unspent monies for running costs to be incurred in the following year.

18