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2021-09-30-accounts

Charity registration number: 1176686

The League Of Friends Of The Royal United Hospitals (Bath)

known as

Friends Of The RUH

Annual Report and Financial Statements

for the Year Ended 30 September 2021

The League Of Friends Of The Royal United Hospitals (Bath)

known as Friends Of The RUH

Contents

Trustees' Report 1 to 11
Independent Examiner's Report 12
Statement of Financial Activities 13
Balance Sheet 14
Cash Flow Statement 15
Notes to the Financial Statements 16 to 33

The League Of Friends Of The Royal United Hospitals (Bath)

known as Friends Of The RUH

Trustees' Report

The Trustees present the annual report together with the financial statements of the Charity for the year ended 30 September 2021.

The League of Friends of the Royal United Hospital (Bath) (the ‘Friends’) is a Charitable Incorporated Organisation - registered charity number 1176686. The principal office is at the Royal United Hospitals - Bath NHS Foundation Trust, Combe Park, Bath, BA1 3NG. Its Governing Document is its Constitution adopted on 15 January 2018, amended by resolution dated 18 June 2019.

Objectives and activities

Objects and aims

The object of the League of Friends of the Royal United Hospitals (Bath) is to preserve and protect the health of patients of the Royal United Hospitals by providing and assisting in the provision of facilities, support services and equipment not normally provided by the statutory authorities.

Fundraising disclosures

Our main source of regular income is through our retail operations - the Friends of the RUH Shop and the Friends’ Coffee Shop.

We do not employ any professional fundraisers. However, we usually hold an annual raffle. We place collection boxes in our retail units, and at a number of locations throughout the hospital. We do receive some funds in the form of legacies, in memoriam collections, and from supporters of the charity.

We do not employ any third-party fundraising agencies or have any activities carried out on our behalf or by commercial participators.

We are not aware of any failures to comply with fundraising standards or related schemes of regulation by us or others acting on our behalf.

During 2020-21 we did not receive any suppression requests through the Fundraising Preference Scheme.

We received no complaints about our fundraising activities during 2020-21.

Public benefit

The trustees confirm that the Charity complies with The Charities Act 2011 with regard to public benefit requirements.

Page 1

The League Of Friends Of The Royal United Hospitals (Bath)

known as Friends Of The RUH

Trustees' Report

Achievements and performance

The year was dominated by the COVID 19 pandemic and this has had a big effect on our retail and volunteering activities.

Retail Trading

Our two retail operations - the Friends of the RUH Shop in the Atrium and the Friends Coffee Shop by Department B18 are vitally important to the charity as this is the source of most of our income needed to fund the management of our volunteers and grant aid resources that benefit the patients.

The Friends of the RUH Shop stocks a wide range of merchandise including sandwiches, ready meals, newspapers, toiletries, groceries, greeting cards, soft drinks, and sweets and snacks.

The Coffee Shop by B18 was opened by Mary Berry in 2014. The Coffee Shop complements the hospital’s catering facilities by offering homemade sandwiches, baguettes, light lunches, barista coffee, soft drinks, and a tranquil environment not available elsewhere in the hospital.

Our retail business has been hit very hard by the pandemic with the numbers attending the hospital as either a patient or visitor greatly reduced and hospital staff has been encouraged to work from home wherever possible. In the year under review, the Shop takings were £319,567 compared with £501,650 in 2020 and £719,794 in 2019. At the same time, Coffee Shop takings for the year were £69,487 compared with £124,567 in 2020 and £242,778 in 2019.

It has long been the aim of the Trustees to have the Friends of the RUH shop refitted. The shop opened more than 20 years ago and was generally looking very tired and dated. For many months the trustees worked with colleagues in the Trust’s Estates department to redesign the shop layout to provide an airy and more contemporary retail space with much-improved wheelchair access which is a credit to both the Trust and the charity. Work took place in August and it was a very special occasion when the refitted shop opened on 6 September. We are pleased with the outcome and have received many compliments from customers old and new. In making the changes the charity was most fortunate to have the assistance of local marketing consultant, Ronny Helvey who did so much to help the Charity design and deliver the refitted shop. The trustees are also very appreciative of the assistance received from RPF Projects, SMC Contracts, and Starke Creative.

Page 2

The League Of Friends Of The Royal United Hospitals (Bath)

known as Friends Of The RUH

Trustees' Report

Volunteering

The Trustees are most appreciative of the commitment and dedication of its volunteers. The volunteers’ work is greatly valued by all associated with the hospital and letters of thanks for acts of kindness are often received.

Up to March 2020, there were over 300 volunteers contributing around 40,000 hours per annum, but as a result of the pandemic, many of the volunteers had to stand down and the number of volunteer hours was greatly reduced. Numbers are gradually improving and over the year under review, there has been a cohort of around 50 to 60 active volunteers contributing almost 10,000 hours.

The list below shows the range of volunteering activities during the year

• Emergency Department Runner • Estates Volunteering • FRUH Christmas Activities • FRUH Coffee Shop • FRUH Shop • Gardening Maintenance • Housekeeping • Oncology Welcome Volunteer • MAU - Specialist Ward Support

• Spiritual Care • Mass Vaccination Centre Support • Ward Induction Shifts • Ward Volunteer - Combe Ward • Ward Volunteer - Emergency Dept.

• Ward Volunteer - Forrester-Brown • Ward Volunteer - Old Persons Assessment Unit (OPAU) • Ward Volunteer - Oncology • Ward Volunteer - Phillip-Yeoman • Welcome Volunteers

Among the achievements was the creation of post COVID ward-based roles in Phillip Yeoman, Combe, Forrester Brown, and OPAU. The re-establishment of the Welcome Volunteers (Guides) and Emergency Dept. roles and assisting 3SG with their set up of the Vaccination Centre volunteer processes.

Communications

For some time the Trustees have wanted to develop and improve the way the charity communicates with its members, volunteers, staff, and the public at large. Following an advertising campaign, the Charity was fortunate in being able to secure the services of three communications and marketing professionals as volunteers. Since joining the charity, the new team has been working to update the charity website, publish a regular and much-improved newsletter, and increase the Charity’s social media presence.

Page 3

The League Of Friends Of The Royal United Hospitals (Bath)

known as Friends Of The RUH

Trustees' Report

Information Management

Work has been undertaken to improve the way the charity’s data is stored, and ensure practices around data management are robust.

Donations to the RUH

The Charity sets aside its surplus profits in order to make donations to the RUH in accordance with its objectives. Due to the pandemic, the amount the charity was able to donate was greatly reduced as the Board sought to manage the charity’s finances. In total £47,520 in cash terms was given for the following:

The charity’s volunteer services team is responsible for recruiting volunteers and managing volunteering operations in the RUH. The cost to the charity of providing the team is an indirect financial benefit to the RUH of over £60,000.

The Trustees previously approved a donation of £150,000 for the provision of a series of Patient Service Columns in the Intensive Therapy Unit. Due to the pandemic, it has not been possible for this work to be undertaken.

The prevalence of COVID meant that the Trust had to increase the number of ITU beds in the hospital. The Trust is in the process of deciding on the future location of ITU and how many ITU beds it requires to meet normal operational needs. The Trust will announce its intentions in due course.

This means that the purchase of the equipment will be delayed even further. The Charity Trustees recognize the immense benefit the Columns will have for both the patients and hospital staff and will continue to hold the money in reserve pending the Trust’s decision.

The charity received a most generous legacy of £167,000 to support the work of the Breast Care Department. The trustees are working with the hospital management to identify a suitable project.

Trustees

The year under review saw two changes in Trustees. In May, the charity bid farewell to Pat Ost who retired after more than 13 years on the Board. During his time as a trustee Pat had provided the Board with professional advice on legal matters and had done much to represent the views and needs of the volunteers.

Page 4

The League Of Friends Of The Royal United Hospitals (Bath)

known as Friends Of The RUH

Trustees' Report

The trustees and their respective roles are;

Bernard Rymer - Chair Jane Rymer - Treasurer Madeline Baker - Grants Committee & Volunteer Representative Graham Hart - Grants Committee & Volunteer Representative Paul Satterly - Lead Trustee for Volunteering Dave Donaghy - Lead Trustee for Information Management Andrea Pierce - Lead Trustee for Legal Matters Philip Addis - Lead Trustee for Retail Matters

We continue to look for people with appropriate business and professional skills to join the Board or to assist us with one-off projects.

Lease

Following negotiations with the Trust the charity was able to renegotiate the lease for the Friends of the RUH shop, the Coffee Shop and the Volunteers’ Office for a further four years to October 2025.

Management of staff and volunteers

The pandemic placed significant pressure on the staff. The Trustees wish to place on record their thanks to the staff especially Mark Vincent, Retail Manager, and his team who kept the Friends of the RUH shop open throughout the pandemic.

The Trustees closely monitored operations and costs throughout the period and regrettably had to take the decision to make seven staff redundant on 31 March 2021. The Trustees were saddened about having to take this decision and are deeply appreciative of the work and support given to the charity by the staff concerned over many years.

Volunteer Manager, Samantha Nolan, left the charity in February 2021 to take up an appointment with a hospital in the London area. The Trustees wish to place on record their thanks and appreciation for Samantha’s 13 years’ service with the charity.

During the year we welcomed three new members of staff. In April Sarah Collins started working in the Coffee Shop as our Catering Supervisor. In July, Pippa Weaver became our Volunteer Manager and Wendy Bull joined our catering team.

Financial review

The Friends were generously supported by donations and fundraising. A total of £243,982 (2020 - £178,457) was received in this way. This amount included legacies of £180,356 (2020 - £121,253) of which £167,256 came from the Estate of the Late Barbara Phillips for the benefit of the Breast Care Unit. The deficit from primary trading activites was £12,467 (2020 - surplus of £86,522). Full details of the financial activities for the year are given in the attached financial statements. Reserves carried forward for the future were £1,153,615 (£1,020,805).

Policy on reserves

Reserves are held for future expenditure on the Objects of the Friends, with adequate reserves, at least £200,000, retained to enable the prudent management of any unforeseen circumstances.

Page 5

The League Of Friends Of The Royal United Hospitals (Bath)

known as Friends Of The RUH

Trustees' Report

Restricted Funds

In October 2020 the Charity became aware of a very generous legacy from the Estate of the Late Barbara Phillips. The first tranche of the money was received in October 2021 and when the final sum is received the legacy will amount to £167,256.

It is a requirement of the Will that the money shall only be used for the benefit of the Breast Care Unit. As a consequence, the sum is shown in the financial statements as a restricted fund. The Trustees are working with the hospital’s senior management to identify a suitable project for the application of the legacy.

Designation of Funds

For some considerable time, the Trustees have been working closely with the RUH management to refurbish the Friends Shop. The work was carried out in August 2021. The designated fund of £150,000 shown in the 2020 accounts has now been reduced to nil.

Principal funding sources

The sole beneficiary of the charity’s funding is the Royal United Hospitals Foundation Trust.

The Charity sets aside its surplus profits in order to make donations to the hospital in accordance with its objectives. During the year donations amounting to £47,520 were paid to the Trust.

Investment policy and objectives

The overall investment objective is to produce the best financial return with the least level of risk. To this end only cash investments shall be allowed. No other investments activity is sanctioned i.e. purchase of shares, land acquisition for rent or sale.

Page 6

The League Of Friends Of The Royal United Hospitals (Bath)

known as Friends Of The RUH

Trustees' Report

Risk management

The Trustees actively review the major risks that the Charity faces and are confident that the systems in place and reserves held are adequate to mitigate these risks.

Decision making

The Board regularly reviews matters are reserved to the Board and which can be delegated. It collectively exercises the powers of delegation to individual trustees and staff.

The Board describes its ‘delegations’ framework in a document that provides sufficient detail and clear boundaries that the delegations can be clearly understood and carried out.

The Board does not currently have a committee structure. The matter is under consideration and if adopted suitable terms of reference and membership will be drawn up and reviewed regularly by the board.

The Royal United Hospitals Trust provides the charity with a number of services, including IT, and payroll. Human Resources advice is provided by Moorepay and bookkeeping services by Mutu.

The Board assures itself that this work is carried out in the interests of the Charity and in line with its values and the agreement between the charity and supplier.

The Board regularly checks the Charity’s key policies and procedures to ensure that they still support, and are adequate for, the delivery of the Charity’s aims.

Page 7

The League Of Friends Of The Royal United Hospitals (Bath)

known as Friends Of The RUH

Trustees' Report

Plans for future periods Grants to the RUH

Since the end of the year under review, the Trustees have made available to the Trust the sum of £100,000 for grants to purchase facilities that benefit the patients. Hospital Wards and departments have been invited to submit bids.

The Trustees will monitor the health of the charity’s finances and if practical will make further sums available in the coming months.

Volunteering

The management of volunteers is a key aspect of the Charity’s work. When the prevalence of COVID recedes the aim will be to rebuild and grow volunteer numbers. The initial aim is to move to 200-300 active volunteers with a recruiting campaign delivering around 15 new volunteers each month. The staff team will be looking to target returning volunteers, vaccination centre volunteers, retired NHS staff, health, and social care students. Further recruitment initiatives will be designed to encourage under-represented groups, and alongside the RUH, there will be a scheme for 16-18 year olds looking for career opportunities within the NHS.

Action will be taken to rebuild and develop the ‘community feel’ of the charity through events, communications. and contact between volunteers. There will also be a focus on showcasing volunteering opportunities and encouraging applications via the website and social media channels.

Friends of the RUH Shop

The trustees are working with the RUH Trust to agree on some much-needed improvements to the storeroom. It is hoped that this work will come to fruition before the end of the year. Changes will also be made to the merchandise to reflect current demands for healthy, plant-based, and well-being goods.

Friends Coffee Shop

The food preparation area in the Coffee Shop is very limited and not conducive to current operational needs. The trustees, with support from Ronny Helvey, are reviewing the facilities to see if some improvements can be made. The trustees are also looking to see if changes can be made to the patio area to provide sufficient shelter to allow the area to be used during inclement times. If suitable solutions can be found the work will be undertaken during the second half of the financial year.

Governance Arrangements

The Governance Policies and Procedures will be reviewed to ensure that they continue to support the aims the charity. This includes the scheme of delegation that is essential for matters which are delegated amongst the Board Trustees and staff members. The Risk Register for the Charity will also be reviewed regularly to ensure that the risks to which the Charity are exposed to are documented and that appropriate controls are in place to mitigate against those risks.

Page 8

The League Of Friends Of The Royal United Hospitals (Bath)

known as Friends Of The RUH

Trustees' Report

Communications

The Trustees are looking to build on the work being undertaken to improve communications. To this end the Communications team is aiming to publish a monthly newsletter for volunteers and a charity information newsletter three times a year. Due to the pandemic, a lot of volunteers have either retired or do not feel that it is appropriate to return to volunteering at this time. Steps will be taken to re-engage with former volunteers to give them the opportunity to stay in contact with the charity. Social media is a very important means of informing people about the charity’s activities. The Communications Team will work to expand the social media reach by using other platforms in addition to Facebook, namely Instagram and Twitter.

65th Anniversary

The charity celebrates its 65th Anniversary in 2022, a social event to celebrate the occasion will be held during the summer.

Structure, governance and management

Recruitment and appointment of Trustees

Trustees are appointed by the Board and elected at the Annual General Meeting on the basis of their enthusiasm for and commitment to the objects of the Charity. The aim is to have a Board consisting of trustees with business and professional skills, experience and expertise that mirrors the charity’s governance needs and operational activities. In seeking new trustees, the charity advertises on its website, through social media channels, and through relevant third sector associations.

Induction and training of trustees

Potential new Trustees attend board meetings as an observer to familiarise themselves with the business and to test their suitability and enthusiasm for the work involved. If appointed, the new trustee is partnered with an existing Board member and attends suitable training courses.

Arrangements for setting key management personnel remuneration

The Trustees consider the Board of Trustees, Retail Manager, and the Volunteer Manager as comprising the key management personnel of the Charity in charge of directing and controlling the charity and running and operating the Charity on a day to day basis.

The Board reviews the pay and remuneration of its key management personnel. In making decisions the Board takes into consideration its commitments and market factors.

All Trustees give up their time freely and no Trustee remuneration was paid in the year. Details of Trustee expenses and related party transactions are disclosed in note 10 to the accounts.

Trustees are required to disclose all relevant interests and register them with the Chair and in accordance with the Charity's policy and withdraw from decisions where a conflict of interest arises.

Page 9

The League Of Friends Of The Royal United Hospitals (Bath)

known as Friends Of The RUH

Trustees' Report

Reference and Administrative Details

Trustees J Rymer, Treasurer M Baker G Hart P Ost (resigned 28 May 2021) B Rymer, Chairman P J Satterly A Pierce D Donaghy L Belsey (resigned 22 March 2021) P Addis

K Sahoy (appointed 1 September 2021 and resigned 21 March 2022)

Principal Office Friends of the RUH Royal United Hospital Combe Park Bath BA1 3NG Charity Registration Number 1176686 Solicitors Stone King Solicitors LLP 13 Queen Square Bath BA1 2HJ Bankers Lloyds Bank Plc Independent Examiner Milsted Langdon LLP Freshford House Redcliffe Way Bristol BS1 6NL

Page 10

The League Of Friends Of The Royal United Hospitals (Bath)

known as Friends Of The RUH

Trustees' Report

Statement of Trustees' Responsibilities

The Trustees are responsible for preparing the Trustees' report and the financial statements in accordance with the United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and applicable law and regulations.

The law applicable to charities requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that period. In preparing these 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 enable them to ensure that the financial statements comply with the Charities Act 2011, the applicable Charities (Accounts and Reports) Regulations, and the provisions of the constitution. The Trustees are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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

The annual report was approved by the Trustees of the Charity on 11 April 2022 and signed on its behalf by:

J Rymer Trustee

Page 11

The League Of Friends Of The Royal United Hospitals (Bath)

known as Friends Of The RUH

Independent Examiner's Report to the trustees of The League Of Friends Of The Royal United Hospitals (Bath)

I report to the Charity Trustees on my examination of the accounts of the Charity for the year ended 30 September 2021 which are set out on pages 13 to 33.

Respective responsibilities of Trustees and examiner

As the Charity’s Trustees of The League Of Friends Of The Royal United Hospitals (Bath) you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’).

Having satisfied myself that the accounts of the Charity are not required to be audited and are eligible for independent examination, I report in respect of my examination of the The League Of Friends Of The Royal United Hospitals (Bath)'s accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.

Independent examiner’s statement

Since The League Of Friends Of The Royal United Hospitals (Bath)'s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of the Institute of Chartered Accountants in England and Wales, which is one of the listed bodies.

I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

  1. accounting records were not kept in respect of The League Of Friends Of The Royal United Hospitals (Bath) as required by section 130 of the Act; or

  2. the accounts do not accord with those records; or

  3. the accounts do not comply with the accounting requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair view' which is not a matter considered as part of an independent examination.

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

G J Freeman ACA

Milsted Langdon LLP Freshford House Redcliffe Way Bristol BS1 6NL

14 April 2022

Page 12

The League Of Friends Of The Royal United Hospitals (Bath)

known as Friends Of The RUH

Statement of Financial Activities for the Year Ended 30 September 2021

Note
Income and Endowments from:
Donations and legacies
2
Charitable activities
3
Other trading activities
4
Investment income
5
Total income
Expenditure on:
Raising funds
6
Charitable activities
7
Total expenditure
Gains/losses on investment
assets
Net (expenditure)/income
Net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward
21		 Unrestricted
funds
£
76,726
389,054
1,441
432
467,653
(51,234)
(450,261)
(501,495)
(604)
(34,446)
(34,446)
1,020,805
986,359		 Restricted
funds
£
167,256
-
-
-
167,256
-
-
-
-
167,256
167,256
-
167,256		 2021
£
243,982
389,054
1,441
432
634,909
(51,234)
(450,261)
(501,495)
(604)
132,810
132,810
1,020,805
1,153,615		 2020
£
178,457
626,217
2,392
5,842
812,908
(61,152)
(547,257)
(608,409)
(1,477)
203,022
203,022
817,783
1,020,805

All of the Charity's activities derive from continuing operations during the above two periods. The funds breakdown for 2020 is shown in note 21.

The notes on pages 16 to 33 form an integral part of these financial statements. Page 13

The League Of Friends Of The Royal United Hospitals (Bath)

known as Friends Of The RUH

(Registration number: 1176686) Balance Sheet as at 30 September 2021

Note
Fixed assets
Tangible assets
13
Investments
14
Current assets
Stocks
15
Debtors
16
Cash at bank and in hand
17
Creditors: Amounts falling due within one year
18
Net current assets
Total assets less current liabilities
Creditors: Amounts falling due after more than one year
19
Net assets
Funds of the Charity:
Restricted income funds
Restricted funds
21
Unrestricted income funds
Unrestricted funds
Total funds
21		 2021
£
77,047
-
77,047
11,479
180,388
1,070,004
1,261,871
(35,303)
1,226,568
1,303,615
(150,000)
1,153,615
167,256
986,359
1,153,615		 2020
£
13,840
13,952
27,792
14,529
59,980
1,098,643
1,173,152
(180,139)
993,013
1,020,805
-
1,020,805
-
1,020,805
1,020,805

The financial statements on pages 13 to 33 were approved by the Trustees, and authorised for issue on 11 April 2022 and signed on their behalf by:

J Rymer Trustee

The notes on pages 16 to 33 form an integral part of these financial statements. Page 14

The League Of Friends Of The Royal United Hospitals (Bath)

known as Friends Of The RUH

Cash Flow Statement for the Year Ended 30 September 2021

Note
Cash flows from operating activities
Net cash income
Adjustments to cash flows from non-cash items
Depreciation
6
Investment income
5
Revaluation of investments
Working capital adjustments
Decrease in stocks
15
Increase in debtors
16
Increase/(decrease) in creditors
18
Net cash flows from operating activities
Cash flows from investing activities
Interest receivable and similar income
5
Purchase of tangible fixed assets
13
Sale of investments
Income from dividends
5
Net cash flows from investing activities
Net (decrease)/increase in cash and cash equivalents
Cash and cash equivalents at 1 October
Cash and cash equivalents at 30 September		 2021
£
132,810
4,123
(432)
604
137,105
3,050
(120,408)
5,164
24,911
338
(67,330)
13,348
94
(53,550)
(28,639)
1,098,643
1,070,004		 2020
£
203,022
2,908
(5,842)
1,477
201,565
628
(58,692)
(35,292)
108,209
5,460
(5,993)
-
382
(151)
108,058
990,585
1,098,643

All of the cash flows are derived from continuing operations during the above two periods.

The notes on pages 16 to 33 form an integral part of these financial statements. Page 15

The League Of Friends Of The Royal United Hospitals (Bath)

known as Friends Of The RUH

Notes to the Financial Statements for the Year Ended 30 September 2021

1 Accounting policies

Statement of compliance

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.

Basis of preparation

The League Of Friends Of The Royal United Hospitals (Bath) meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.

Going concern

In light of the rapid global spread of the Coronavirus “COVID-19” in early 2020, the Trustees have reviewed the Charity’s operations and, as described in the Trustee’s Report, have taken steps to ensure the Charity is able to continue to operate at a reduced level during the pandemic. The Trustees continue to monitor the charity’s existing financial commitments and ongoing operational overheads and will take such remedial action as necessary to help ensure the future of the charity.

The level of the Charity’s cash reserves is such the that the Trustees consider the charity to be a going concern. Accordingly, they continue to adopt the going concern basis in preparing the report of the Trustees and financial statements.

Income and endowments

Donations, gifts, legacies and grants that provide core funding or are of a general nature is recognised when the Charity has entitlement to the income, it is probable that the income will be received and the amount can be measured with sufficient reliability.

Donations and legacies

Donations are recognised when the Charity has been notified in writing of both the amount and settlement date. In the event that a donation is subject to conditions that require a level of performance before the charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charity and it is probable that those conditions will be fulfilled in the reporting period.

Legacy gifts are recognised on a case by case basis following the granting of probate when the administrator/executor for the estate has communicated in writing both the amount and settlement date. In the event that the gift is in the form of an asset other than cash or a financial asset traded on a recognised stock exchange, recognition is subject to the value of the gift being reliably measurable with a degree of reasonable accuracy and the title to the asset having been transferred to the Charity.

Page 16

The League Of Friends Of The Royal United Hospitals (Bath)

known as Friends Of The RUH

Notes to the Financial Statements for the Year Ended 30 September 2021

Grants receivable

Grants are recognised when the Charity has an entitlement to the funds and any conditions linked to the grants have been met. Where performance conditions are attached to the grant and are yet to be met, the income is recognised as a liability and included on the balance sheet as deferred income to be released.

Investment income

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Charity; this is normally upon notification of the interest paid or payable by the bank. Dividends are recognised once the dividend has been declared and notification has been received of the dividend due.

Charitable activities

Income generated from charitable activities is comprised of the fair value of consideration received for the sale of goods in the ordinary course of the Charity's activities. Income is shown net of value added tax, returns, rebates and discounts.

Expenditure

All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources, with central staff costs allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use. Other support costs are allocated based on the spread of staff costs.

Raising funds

These are costs incurred in attracting voluntary income, the management of investments and those incurred in trading activities that raise funds.

Charitable activities

Charitable expenditure comprises those costs incurred by the Charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.

Support costs

Support costs include central functions and have been allocated to activity cost categories on a basis consistent with the use of resources, for example, allocating property costs by floor areas, or per capita, staff costs by the time spent and other costs by their usage.

Governance costs

These include the costs attributable to the Charity’s compliance with constitutional and statutory requirements, including audit, strategic management and Trustees’s meetings and reimbursed expenses.

Page 17

The League Of Friends Of The Royal United Hospitals (Bath)

known as Friends Of The RUH

Notes to the Financial Statements for the Year Ended 30 September 2021

Government grants

Government grants are recognised based on the accrual model and are measured at the fair value of the asset received or receivable. Grants are classified as relating either to revenue or to assets. Grants relating to revenue are recognised in income over the period in which the related costs are recognised. Grants relating to assets are recognised over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income.

Taxation

The Charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK Corporation Tax purposes. Accordingly, the Charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

Tangible fixed assets

Individual fixed assets costing £200 or more are initially recorded at historical cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

Depreciation and amortisation

Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated residual value, over their expected useful economic life as follows:

Asset class Depreciation method and rate
Coffee shop fittings 25% reducing balance
Convenience shop fittings 25% reducing balance

Fixed asset investments

Fixed asset investments, other than programme related investments, are included at market value at the balance sheet date. Realised gains and losses on investments are calculated as the difference between sales proceeds and their market value at the start of the year, or their subsequent cost, and are charged or credited to the Statement of Financial Activities in the period of disposal.

Unrealised gains and losses represent the movement in market values during the year and are credited or charged to the Statement of Financial Activities based on the market value at the year end.

Stock

Stock is valued at the lower of cost and estimated selling price less costs to complete and sell, after due regard for obsolete and slow moving stocks. Cost is determined using the first-in, first-out (FIFO).

Page 18

The League Of Friends Of The Royal United Hospitals (Bath)

known as Friends Of The RUH

Notes to the Financial Statements for the Year Ended 30 September 2021

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the Charity will not be able to collect all amounts due according to the original terms of the receivables.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Fund structure

Unrestricted income funds are general funds that are available for use at the Trustees's discretion in furtherance of the objectives of the Charity.

Restricted income funds are those donated for use in a particular area or for specific purposes, the use of which is restricted to that area or purpose.

Pensions and other post retirement obligations

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the Charity has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Page 19

The League Of Friends Of The Royal United Hospitals (Bath)

known as Friends Of The RUH

Notes to the Financial Statements for the Year Ended 30 September 2021

Financial instruments

Classification

Financial assets and financial liabilities are recognised when the Charity becomes a party to the contractual provisions of the instrument.

Financial liabilities are classified according to the substance of the contractual arrangements entered into.

Recognition and measurement

All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through surplus or deficit, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Financial assets and liabilities are only offset in the balance sheet when, and only when there exists a legally enforceable right to set off the recognised amounts and the Charity intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

Financial assets are derecognised when and only when a) the contractual rights to the cash flows from the financial asset expire or are settled, b) the Charity transfers to another party substantially all of the risks and rewards of ownership of the financial asset, or c) the Charity, despite having retained some, but not all, significant risks and rewards of ownership, has transferred control of the asset to another party.

Financial liabilities are derecognised only when the obligation specified in the contract is discharged, cancelled or expires.

Investments

Investments in non-convertible preference shares and non-puttable ordinary or preference shares (where shares are publicly traded or their fair value is reliably measurable) are measured at fair value through profit or loss. Where fair value cannot be measured reliably, investments are measured at cost less impairment.

Investments in subsidiaries and associates are measured at cost less impairment. For investments in subsidiaries acquired for consideration including the issue of shares qualifying for merger relief, cost is measured by reference to the nominal value of the shares issued plus fair value of other consideration. Any premium is ignored.

Page 20

The League Of Friends Of The Royal United Hospitals (Bath)

known as Friends Of The RUH

Notes to the Financial Statements for the Year Ended 30 September 2021

Derivative financial instruments

The Charity uses derivative financial instruments to reduce exposure to foreign exchange risk and interest rate movements. The Charity does not hold or issue derivative financial instruments for speculative purposes.

Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to their fair value at each reporting date. The resulting gain or loss is recognised in statement of financial activities immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in statement of financial activities depends on the nature of the hedge relationship.

Fair value measurement

The best evidence of fair value is a quoted price for an identical asset in an active market. When quoted prices are unavailable, the price of a recent transaction for an identical asset provides evidence of fair value as long as there has not been a significant change in economic circumstances or a significant lapse of time since the transaction took place. If the market is not active and recent transactions of an identical asset on their own are not a good estimate of fair value, the fair value is estimated by using a valuation technique.

Page 21

The League Of Friends Of The Royal United Hospitals (Bath)

known as Friends Of The RUH

Notes to the Financial Statements for the Year Ended 30 September 2021

2 Income from donations and legacies

Note
Donations and
legacies;
Donations from
individuals
Legacies
Street collection
income
Grants, including
capital grants;
Government
grants
9		 Unrestricted
funds
General
£
14,761
13,100
697
48,168
76,726		 Restricted
funds
£
-
167,256
-
-
167,256		 2021
£
14,761
180,356
697
48,168
243,982		 2020
£
15,274
121,253
1,408
40,522
178,457

£76,726 (2020 - £178,457) of the income above was attributable to unrestricted funds and £167,256 (2020 - £nil) attributable to restricted funds.

3 Income from charitable activities

Coffee shop takings
Convenience shop takings		 Unrestricted
funds
General
£
69,487
319,567
389,054		 2021
£
69,487
319,567
389,054		 2020
£
124,567
501,650
626,217

Page 22

The League Of Friends Of The Royal United Hospitals (Bath)

known as Friends Of The RUH

Notes to the Financial Statements for the Year Ended 30 September 2021

All of the above income was attributable to unrestricted funds in 2021 and 2020.

4 Income from other trading activities

Local fundraising Unrestricted
funds
General
£
1,441
1,441		 2021
£
1,441
1,441		 2020
£
2,392
2,392

All of the above income was attributable to unrestricted funds in 2021 and 2020.

5 Investment income

Income from dividends;
Dividends receivable from other listed
investments
Interest receivable and similar income;
Interest receivable on bank deposits		 Unrestricted
funds
General
£
94
338
432		 2021
£
94
338
432		 2020
£
382
5,460
5,842

All of the above income was attributable to unrestricted funds in 2021 and 2020.

6 Expenditure on raising funds

a) Costs of generating donations and legacies

Note
Allocated support costs
8
Staff Costs		 Unrestricted
funds
General
£
8,176
41,783
49,959		 2021
£
8,176
41,783
49,959		 2020
£
8,886
52,136
61,022

Page 23

The League Of Friends Of The Royal United Hospitals (Bath)

known as Friends Of The RUH

Notes to the Financial Statements for the Year Ended 30 September 2021

b) Costs of trading activities

Note
Fundraising trading costs;
Publicity
Other fundraising costs		 Unrestricted
funds
General
£
660
615
1,275		 2021
£
660
615
1,275		 2020
£
130
-
130

All of the above expenditure was attributable to unrestricted funds in 2021 and 2020.

7 Expenditure on charitable activities

Coffee shop
Convenience shop
Donations to the RUH
Support costs
Staff costs
Bookkeeping fees
Governance costs
Coffee shop
Convenience shop
Donations to RUH		 Note
Activity
undertaken
directly
£
119,683
272,487
47,520
439,690		 Unrestricted
funds
General
£
32,775
205,707
47,521
4,833
144,871
8,816
5,738
450,261
Activity
support
costs
£
3,226
7,345
-
10,571		 2021
£
32,775
205,707
47,521
4,833
144,871
8,816
5,738
450,261
2021
£
122,909
279,832
47,520
450,261		 2020
£
47,777
310,562
7,562
2,481
161,951
7,337
9,587
547,257
2020
£
133,465
406,230
7,562
547,257

Page 24

The League Of Friends Of The Royal United Hospitals (Bath)

known as Friends Of The RUH

Notes to the Financial Statements for the Year Ended 30 September 2021

All of the above expenditure was attributable to unrestricted funds in 2021 and 2020.

Included within the expenditure analysed above are governance costs of £5,738 (2020 - £9,587) which relate directly to charitable activies. See note 8 for further details.

Page 25

The League Of Friends Of The Royal United Hospitals (Bath)

known as Friends Of The RUH

Notes to the Financial Statements for the Year Ended 30 September 2021

8 Analysis of governance and support costs

Raising funds expenditure Costs of generating donations and legacies

Basis of
allocation
Other resources expended -
insurance, stationery etc.
A
Charitable activities expenditure
Basis of
allocation
Governance costs		 Unrestricted
funds
General
£
8,176
Unrestricted
funds
General
£
5,738		 2021
£
8,176
2021
£
5,738		 2020
£
8,886
2020
£
9,587

Basis of allocation

Reference Method of allocation A Directly attributable

Governance costs

Independent examiner fees
Examination of the financial statements
Other fees paid to examiners
Legal fees
Other governance costs		 Unrestricted
funds
General
£
2,600
3,100
-
38
5,738		 2021
£
2,600
3,100
-
38
5,738		 2020
£
2,500
4,305
2,732
50
9,587

Page 26

The League Of Friends Of The Royal United Hospitals (Bath)

known as Friends Of The RUH

Notes to the Financial Statements for the Year Ended 30 September 2021

9 Government grants

Any amounts received during the year in respect of grants were for the Coronavirus Job Retention Scheme and support given from local council. All amounts included are shown in note 2.

The amount of grants recognised in the financial statements was £48,168 (2020 - £40,522).

10 Trustees remuneration and expenses

During the year the Charity made the following transactions with Trustees:

J Rymer

£Nil (2020 - £79) of expenses were reimbursed to J Rymer during the year.

Mrs J Rymer runs the Friends Volunteer Gardening Team and was reimbursed costs in respect of plants, compost and other gardening ornaments for the Royal United Hospital Bath's gardens.

At the balance sheet date the amount due from J Rymer was £Nil (2020 - £Nil).

B Rymer

£Nil (2020 - £11) of expenses were reimbursed to B Rymer during the year.

Mr B Rymer was reimbursed costs in respect of gardening materials for the Royal United Hospital Bath's gardens.

At the balance sheet date the amount due from B Rymer was £Nil (2020 - £Nil).

No Trustees, nor any persons connected with them, have received any remuneration from the Charity during the year.

No trustees have received any other benefits from the charity during the year.

Page 27

The League Of Friends Of The Royal United Hospitals (Bath)

known as Friends Of The RUH

Notes to the Financial Statements for the Year Ended 30 September 2021

11 Staff costs

The aggregate payroll costs were as follows:

The aggregate payroll costs were as follows:
Staff costs during the year were:
Wages and salaries
Social security costs
Pension costs
Compensation payments
Other staff costs		 2021
£
157,340
10,075
2,230
17,009
-
186,654		 2020
£
205,510
6,731
1,726
-
120
214,087

The monthly average number of persons (including senior management team) employed by the Charity during the year was as follows:

Staff
Coffee shop
Convenience shop
Administration/Governance
Total staff		 2021
No
11
2021
No
4
5
2
11		 2020
No
18
2020
No
7
8
3
18

No employee received emoluments of more than £60,000 during the year

The total employee benefits of the key management personnel of the Charity were £47,711 (2020 - £52,136).

12 Taxation

The Charity is a registered charity and is therefore exempt from taxation to the extent that such income or gains are applied exculsively for charitable purposes.

Page 28

The League Of Friends Of The Royal United Hospitals (Bath)

known as Friends Of The RUH

Notes to the Financial Statements for the Year Ended 30 September 2021

13 Tangible fixed assets

Cost
At 1 October 2020
Additions
At 30 September 2021
Depreciation
At 1 October 2020
Charge for the year
At 30 September 2021
Net book value
At 30 September 2021
At 30 September 2020
14 Fixed asset investments
Other investments
Other investments
Cost or Valuation
At 1 October 2020
Disposals
At 30 September 2021
Net book value
At 30 September 2021
At 30 September 2020		 Convenience
shop fittings
£
81,690
63,330
145,020
75,294
1,599
76,893
68,127
6,396		 Convenience
shop fittings
£
81,690
63,330
145,020
75,294
1,599
76,893
68,127
6,396		 Coffee shop
fittings
£
64,048
4,000
68,048
56,604
2,524
59,128
8,920
7,444
2021
£
-
Listed
investments
£
13,952
(13,952)
-
-
13,952		 Total
£
145,738
67,330
213,068
131,898
4,123
136,021
77,047
13,840
2020
£
13,952
145,020
75,294
1,599
76,893
68,127
6,396
Total
£
13,952
(13,952)
-
-
13,952

Investments are carried at their fair value buy their quoted price in public markets. The basis of fair value is the equivalent to the year end market value, using bid prices.

Page 29

The League Of Friends Of The Royal United Hospitals (Bath)

known as Friends Of The RUH

Notes to the Financial Statements for the Year Ended 30 September 2021

15 Stock
Coffee shop stock
Convenience shop stock
16 Debtors
Trade debtors
Accrued income
VAT recoverable
17 Cash and cash equivalents
Cash on hand
Cash at bank
Short-term deposits
18 Creditors: amounts falling due within one year
Trade creditors
Other taxation and social security
Other creditors
Accruals
19 Creditors: amounts falling due after one year
Accruals		 2021
£
1,736
9,743
11,479
2021
£
108
170,931
9,349
180,388
2021
£
3,538
312,902
753,564
1,070,004
2021
£
14,481
779
12,197
7,846
35,303
2021
£
150,000		 2020
£
558
13,971
14,529
2020
£
72
58,575
1,333
59,980
2020
£
2,200
891,689
204,754
1,098,643
2020
£
8,478
934
15,877
154,850
180,139
2020
£
-

Page 30

The League Of Friends Of The Royal United Hospitals (Bath)

known as Friends Of The RUH

Notes to the Financial Statements for the Year Ended 30 September 2021

20 Commitments

Other financial commitments

The Trustees previously approved a donation of £150,000 for the provision of a series of Patient Service Columns in the Intensive Therapy Unit. Due to the pandemic, it has not been possible for this work to be undertaken.

The prevalence of COVID meant that the Trust had to increase the number of ITU beds in the hospital. The Trust is in the process of deciding on the future location of ITU and how many ITU beds it requires to meet normal operational needs. The Trust will announce its intentions in due course.

This means that the purchase of the equipment will be delayed even further. The Charity Trustees recognize the immense benefit the Columns will have for both the patients and hospital staff and will continue to hold the money in reserve pending the Trust’s decision.

The Charity has an operating lease agreement with the Royal United Hospital Bath to pay an annual nominal rental payment of £200 including VAT. The expiry date of the lease is 31 October 2025.

21 Funds

Unrestricted funds
General
Unrestricted
general fund
Designated
Designated fund
Total unrestricted
funds
Restricted funds
Breast Care Unit
Total funds		 Balance
at 1
October
2020
£
Incoming
resources
£
Resources
expended
£
870,805
467,653
(501,495)
150,000
-
-
1,020,805
467,653
(501,495)
-
167,256
-
1,020,805
634,909
(501,495)		 Transfers
£
Other
recognised
gains/
(losses)
£
Balance
at 30
September
2021
£
150,000
(604)
986,359
(150,000)
-
-
-
(604)
986,359
-
-
167,256
-
(604)
1,153,615		 Transfers
£
Other
recognised
gains/
(losses)
£
Balance
at 30
September
2021
£
150,000
(604)
986,359
(150,000)
-
-
-
(604)
986,359
-
-
167,256
-
(604)
1,153,615
986,359
167,256
1,153,615

Page 31

The League Of Friends Of The Royal United Hospitals (Bath)

known as Friends Of The RUH

Notes to the Financial Statements for the Year Ended 30 September 2021

Unrestricted funds
General
Unrestricted general fund
Designated
Designated fund
Total funds		 Balance at
1 October
2019
£
667,783
150,000
817,783		 Incoming
resources
£
812,908
-
812,908		 Resources
expended
£
(608,409)
-
(608,409)		 Other
recognised
gains/
(losses)
£
(1,477)
-
(1,477)		 Balance at
30
September
2020
£
870,805
150,000
1,020,805

The specific purposes for which the funds are to be applied are as follows:

The Charity maintains a general fund which is unrestricted and represents funds which are expendable at the direction of the Trustees in furtherance of the objects of the Charity. Such funds may be held in order to finance both working capital and capital investment.

The designated fund represents funds which may assist with a shop re-fit.

The restricted funds are funds which the donor has specified for a specific purpose. Expenditure on restricted funds is restricted to the Cardiology Department.

Page 32

The League Of Friends Of The Royal United Hospitals (Bath)

known as Friends Of The RUH

Notes to the Financial Statements for the Year Ended 30 September 2021

22 Analysis of net assets between funds

Tangible fixed assets
Current assets
Current liabilities
Total net assets
Tangible fixed assets
Fixed asset investments
Current assets
Current liabilities
Total net assets		 Unrestricted
funds
General
£
77,047
1,094,615
(185,303)
986,359		 Restricted
funds
£
-
167,256
-
167,256
Unrestricted
funds
General
£
13,840
13,952
1,173,152
(180,139)
1,020,805		 Total funds
at 30
September
2021
£
77,047
1,261,871
(185,303)
1,153,615
Total funds
at 30
September
2020
£
13,840
13,952
1,173,152
(180,139)
1,020,805

23 Related party transactions

There were no related party transactions in the year except those mentioned in Note 10.

Page 33