**Charity number: 200905**
## **TORBAY HOSPITAL LEAGUE OF FRIENDS**
**TRUSTEES' REPORT AND FINANCIAL STATEMENTS**
**FOR THE YEAR ENDED 31 DECEMBER 2021**
**TORBAY HOSPITAL LEAGUE OF FRIENDS**
## **CONTENTS**
||Page|
|---|---|
|**Reference and Administrative Details of the Charity, its Trustees and Advisers**|1|
|**Trustees' Report**|2 - 7|
|**Independent Auditors' Report on the Financial Statements**|8 - 11|
|**Consolidated Statement of Financial Activities**|12|
|**Consolidated Balance Sheet**|13|
|**Charity Balance Sheet**|14|
|**Consolidated Statement of Cash Flows**|15|
|**Notes to the Financial Statements**|16 - 32|
**TORBAY HOSPITAL LEAGUE OF FRIENDS**
## **REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 DECEMBER 2021**
|**Trustees**|Mr G L Adroit|
|---|---|
||Mrs J Berry|
||Mr T Brown, Vice President|
||Mrs S Cox (resigned 31 March 2021)|
||Mr T Cox (resigned 31 March 2021)|
||Mr M K Evans, Vice President|
||Mrs P Eyles|
||Mrs J M Hearne, Vice President|
||Mrs L Hookings, Vice President|
||Mr M A Hookings|
||Mrs B Lawton|
||Mrs L McCaig|
||Mrs C M Piper, Vice President|
||Miss P A Roberts, President|
||Mr D Rogers, Vice President|
||Mr R Tuttle, Chair (Appointed as Chair 14 May 2021)|
||Mrs K N Westaway, Former Chair (Resigned as Chair 14 May 2021)|
||Mr P F V White, Vice President/Honorary Secretary|
|**Charity registered**
**number**
200905
**Principal office**
Highlyn
6 Haldon Close
Torquay
Devon
TQ1 2NA
**Independent auditors**
Bishop Fleming LLP
Chartered Accountants
Statutory Auditors
2nd Floor Stratus House
Emperor Way
Exeter Business Park
Exeter
EX1 3QS
**Solicitors**
Wollens
Carlton House
30 The Terrace
Torquay
Devon
TQ1 1BS||
Page 1
**TORBAY HOSPITAL LEAGUE OF FRIENDS**
## **TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2021**
The Trustees present their report along with the financial statements of Torbay Hospital League of Friends (the charity and the group) for the year ended 31 December 2021. The Trustees confirm that the Annual Report and financial statements of the charity and the group comply with the current statutory requirements, the requirements of the charity and the group's governing document and the provisions of the Statement of Recommended Practice (SORP), 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).
## **Objectives and activities**
## **a. Policies and objectives**
The objects of the League, as set out in the Governing Document, shall be to relieve patients and former patients of the Torbay Hospitals (now only the Torbay Hospital) and generally to support the work of the hospital. To achieve this overall purpose the Governing Document sets out various practical steps to be taken.
The aims of the Charity are to support the continuing development of Torbay Hospital mainly by supplementing funds available for equipment as well as for research education and training. Additionally, where it can, the Charity aims to foster interest in the work of the Hospital by the provision of voluntary work within the Hospital.
The main objectives are to achieve as great a financial contribution as possible and continue to support Hospital services by the provision of such other services as we are able.
## **b. Strategies for achieving objectives**
These included holding regular monthly meetings of the Management Committee to keep close control over income and expenditure and liaising with the Hospital Trust to obtain details of what equipment is needed or whether the provision of funds for improvement or enhancement of staff or other facilities could be made. The Charity also seeks to publicise its efforts inter alia by holding a variety of events both small and large throughout the year including Flag Days, Draws, and the sale of Christmas Cards. Where appropriate, consideration is given to the making of a public appeal to raise funds for a specific project.
## **c. Activities undertaken to achieve objectives**
Legacy income is a significant part of the Charity’s overall income and as such the Charity will be doing all it can to promote itself as a Charity worthy of charitable giving. The Charity continues to enjoy a healthy level of income, which has enabled it to continue making available monies to the Hospital for a variety of purposes as requested by the Hospital. The accounts give a full picture of the extent of the grants made. The Management committee continues to encourage the Hospital to approach the League for donations of any kind for items however large or small.
## **d. Volunteers**
As reported last year our Café, Butterflies, closed with the loss of all our Volunteers who had run the café in previous years. As we were no longer able to occupy any space on Level 2, we also lost our office and small shop along with all the Volunteers who ran the internal Medical Records delivery service previously based on Level 2. However, as at the end of 2021 the Hospital have promised that we shall have a new position on Level 4 opposite the Main Entrance to the hospital. From there we intend to sell items such as you might find in a good quality Gift/Souvenir shop – mostly with our logo on i.e., Pens, Mugs, Diaries, Christmas Cards, Note Pads etc. We shall not be running any catering services from this new “pod” as in the past but we do intend also to sell second hand books donated to us along with jigsaw puzzles and knitted garments for babies. Whilst the opportunities for Volunteers working in the pod will be greatly reduced, we hope that a sufficient number will feel able to return to help with selling such goods as we can, as well as acting generally as Ambassadors for the League and promoting future events. Our Linen League has now recovered from the lockdown and is back operating as before albeit in different premises.
Page 2
**TORBAY HOSPITAL LEAGUE OF FRIENDS**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021**
## **Objectives and activities (CONTINUED)**
## **e. Activities undertaken to further the charity's purposes for the public benefit**
In deciding on both the current and future policy and activities, the charity has referred to the Charity Commission's general guidance on public benefit. In particular the trustees consider how the planned policies and activities will contribute to the aims and objectives they have set. The nature of the activities undertaken during the year is set out elsewhere in this report.
## **Achievements and performance**
## **a. Key performance indicators**
Once again, the League has been unable to organise any activities in 2021. Activities such as Flag Days, sale of Christmas Cards, Draws, Bed Push, Collection buckets, Coffee mornings and other social events are designed to promote the League and its aims to the public in order to secure funds to be passed back to the Hospital. Whilst always mindful of the state of the pandemic and any restrictions/regulations that may be in force from time to time, the Trustees expect that these activities will be resumed in the course of 2022.
Total sums paid to the Hospital this year are £82,672: (2020: £21,768). The League has agreed a protocol with the Hospital to ensure that grants made to the Hospital for items of equipment that the Hospital are not able to finance from alternative sources but which they consider to be necessary and which they will be able to maintain throughout its expected life. The Protocol agreed is:
- For single items over £5,000: Current Trust Policy requires these bids to progress through the Medical Devices Committee (MDC). The MDC will then identify which bids should proceed for consideration by the League.
- For single use items under £5,000: Single use items under £5,000 do not go to the MDC. Such bids will be assessed by the Director of Nursing or Medical Director who will refer them on a monthly basis to the League.
For multiple items where individually, the cost is less than £5,000 but in totality the cost exceeds £5,000:
- If such bids are not considered by the MDC they will be assessed by the Director of Nursing or Medical Director and if appropriate will then be referred to the League.
## **b. Review of activities**
The League has been unable to organise activities throughout the year, which would promote it and its objects to the public to secure funds for the Hospital. Such events publicise the work of the League and increases awareness of what the League does for the Community and are as important as making a profit for the League. The Trustees will be doing all they can to re-instate such activities as soon as possible
## **c. Investment policy and performance**
As the League has variable income derived from legacies, fund raising and similarly variable payments dependent upon opportunities presented to it by the Hospital, the bulk of its funds held until payment are invested in interest bearing Bank accounts and Investment Companies. The Trustees consider this to be the simplest and most risk-free method to earn income and maintain capital value.
Page 3
**TORBAY HOSPITAL LEAGUE OF FRIENDS**
**TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021**
## **Financial review**
## **a. Going concern**
After making appropriate enquiries, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the Accounting Policies.
## **b. Reserves policy**
The Trustees have reviewed the charity’s needs for reserves in line with the guidance issued by the Charity Commission and have decided that unrestricted reserves should be sufficient to enable it at all times to meet its current designated commitments and anticipate future calls by the Hospital as and when they arise with a minimum of £250,000. The total value of reserves at the end of the year was £2,953,074 (2020: £2,285,336) of which free reserves amount to £1,389,340 (2020: £707,889).
## **c. Financial risk management objectives and policies**
The League is entirely dependent upon the generosity of the public to make donations either through legacies, gifts or support to the various fund-raising activities conducted throughout the year by the League and its members. The income from all sources during the year was £784,571 (2020 £801,405).
## **Structure, governance and management**
## **a. Constitution**
The League is an unincorporated body, constituted under a Governing Document originally drawn up in 1954 and subsequently amended, to provide amenities and services for patients and staff at Torbay Hospital. Over the years it has become one of the leading Leagues in the country having provided gifts exceeding £20,000,000.
The League is able to enhance what Torbay Hospital provides and buy 'extras’ that can bring the most advanced methods of treatment to benefit local people and visitors to the area. Members of the League act in a number of ways for the benefit of Torbay Hospital by supporting its work, recruiting volunteers, maintaining the relationship between volunteers and the Hospital and creating a link between the Hospital and the community it serves.
## **b. Methods of appointment or election of Trustees**
The Trustees, who together form the Management Committee, are appointed under the terms of the Governing Document from the membership body (save for appointments required under the Governing Document) provided they are also members of the League. Elected trustees serve for a period of five years after which they may put themselves forward for re-election. The Management Committee may remove the Secretary and Treasurer at any time.
Page 4
**TORBAY HOSPITAL LEAGUE OF FRIENDS**
**TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021**
## **Structure, governance and management (CONTINUED)**
## **c. Organisational structure and decision-making policies**
The Management Committee meet monthly to approve grants to the Hospital. Protocols are in place with the Hospital to ensure that bids for grants from the League are first assessed by the Hospital on the basis of need and affordability of maintenance to ensure that any equipment purchased will be of the greatest benefit and can be properly serviced and maintained by the Hospital for its expected lifetime. The Management Committee deals with administration relating to the general activities of the League including receiving a monthly financial report, and reports from Membership, Publicity, Linen League and regarding Events organised by the League. The League’s finances are dealt with by the Hon Sec who reports monthly to the Management Committee. Various members of the Management Committee have specific roles under the overall control of the Management Committee to whom they report at the monthly meetings.
The League is a member of the Devon Association of Hospital Leagues of Friends.
The Charity currently has a wholly owned non-charitable subsidiary, The Torbay Hospital League of Friends Shop Limited, whose activities and trading performance is included within the accounts submitted with this report. Until the lockdown in March 2020 caused by the pandemic, the Trading Company employed two persons as Organisers of the Canteen and was registered for VAT. The Hon. Sec. of the Charity is a Director and Secretary of the Trading Company; the Voluntary Organiser was also a director along with a Trustee of the main charity. During the lockdown period, in December 2020 the position changed when it became apparent that due to a complete overhaul to the Emergency Department, we would no longer be able to return to Level 2 within the hospital. Accordingly, the one paid employee has been made redundant, the business has de-registered for VAT and the assets of the company sold and the funds transferred to the charity. It is intended that an application to have the company struck off the register will be lodged in due course.
## **d. Policies adopted for the induction and training of Trustees**
New Trustees are found through recommendation by existing members/trustees or by word of mouth or are volunteers who wish to become more involved with the Charity. Their names, having been proposed and seconded, are presented at the Annual General Meeting before being voted upon. New Trustees are given an induction pack so that they are aware of the Charity’s background, its financial basis and their obligations and responsibilities as Trustees.
## **e. Risk management**
The General Committee is responsible for the management of risks faced by the Charity and continually review those risks and put in place practices and controls to be observed throughout the year. Those controls include:
- Formal agendas for all Committee meetings.
- Established organisational structures with well-defined lines of reporting.
- Monthly reports relating to finances including income and expenditure.
- Declaration of Conflicts of Interest by Trustees.
- The Trustees consider that the risks identified have been mitigated as far as possible.
Page 5
**TORBAY HOSPITAL LEAGUE OF FRIENDS**
**TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021**
## **Structure, governance and management (CONTINUED)**
## **f. Fundraising**
The League organises fundraising events and co-ordinates the activities of supporters both in the hospital and in the wider community The League does not use professional fundraisers or involve commercial participators. There have been no complaints about fundraising activity this year.
The League follows as closely as possible relevant parts of the Fundraising Regulator’s Code of Fundraising Practice. Volunteer fundraisers are briefed before they raise funds for the League and given updates/ reminders as necessary. We assist and monitor supporters engaged in fundraising activity to ensure compliance of the Code with particular focus on how to approach and work with members of the public who are potentially vulnerable.
Following a review of marketing generally any direct marketing is to be undertaken by a Trustee and member of the Management Committee to ensure that it is not unreasonably intrusive or persistent. All marketing material will contain clear instructions on how a person can be removed from mailing lists.
Contact is to be made only to members of the public who consent and on an infrequent basis. Our Newsletter is sent out to Members on a bi-annual basis and our e-Newsletter is currently sent on a two-monthly basis to members of the League who have given their consent.
## **Plans for future periods**
The League intends to continue to support Torbay Hospital to the full extent it can and in particular:
- will maintain the strong links already forged with the Hospital management,
- will remain responsive to requests for funding from the Hospital,
- will encourage fund raising activities by members of the League.
- will do what it can to publicise the work of the League so as to promote the interests of the League to members of the public minded to make donations.
Page 6
**TORBAY HOSPITAL LEAGUE OF FRIENDS**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021**
## **STATEMENT OF TRUSTEES' RESPONSIBILITIES**
The Trustees are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
The law applicable to charities in England & Wales 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 Group and the charity and of their incoming resources and application of resources, including their income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles of the Charities SORP (FRS 102);
- make judgments and accounting estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards (FRS 102) have been followed, subject to any material departures disclosed and explained in the financial statements;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue in business.
The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Group and the charity's transactions and disclose with reasonable accuracy at any time the financial position of the Group and the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the Trust deed. They are also responsible for safeguarding the assets of the Group and the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
## **Disclosure of information to auditors**
Each of the persons who are Trustees at the time when this Trustees' Report is approved has confirmed that:
- so far as that Trustee is aware, there is no relevant audit information of which the charitable group's auditors are unaware, and
- that Trustee has taken all the steps that ought to have been taken as a Trustee in order to be aware of any relevant audit information and to establish that the charitable group's auditors are aware of that information.
## **Auditors**
The auditors, Bishop Fleming LLP, have indicated their willingness to continue in office. The designated Trustees will propose a motion reappointing the auditors at a meeting of the Trustees.
Approved by order of the members of the board of Trustees on 12 May 2022 and signed on their behalf by:
## **Mr R Tuttle**
Chair
Page 7
## **TORBAY HOSPITAL LEAGUE OF FRIENDS**
##
##
## **Opinion**
We have audited the financial statements of Torbay Hospital League of Friends (the 'parent charity') and its subsidiaries (the 'group') for the year ended 31 December 2021 which comprise the Consolidated Statement of Financial Activities, the Consolidated Balance Sheet, the Charity Balance Sheet, the Consolidated Statement of Cash Flows 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 2015.
In our opinion the financial statements:
- give a true and fair view of the state of the Group's and of the parent charity's affairs as at 31 December 2021 and of the Group's incoming resources and application of resources, including its income and expenditure for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Charities Act 2011.
## **Basis for opinion**
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group 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**
In auditing the financial statements, we have concluded that the Trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group's or the parent charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.
Page 8
**TORBAY HOSPITAL LEAGUE OF FRIENDS**
## **INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF TORBAY HOSPITAL LEAGUE OF FRIENDS (CONTINUED)**
## **Other information**
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The Trustees are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
## **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:
- the information given in the Trustees' Report is inconsistent in any material respect with the financial statements; or
- the parent charity has not kept sufficient accounting records; or
- the parent charity financial statements are not in agreement with the accounting records and returns; or
- we have not received all the information and explanations we require for our audit.
## **Responsibilities of trustees**
As explained more fully in the Trustees' Responsibilities Statement, the Trustees are responsible for the preparation of the 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 Group's and the parent 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 Group or the parent charity or to cease operations, or have no realistic alternative but to do so.
Page 9
**TORBAY HOSPITAL LEAGUE OF FRIENDS**
## **INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF TORBAY HOSPITAL LEAGUE OF FRIENDS (CONTINUED)**
## **Auditors' responsibilities for the audit of the financial statements**
We have been appointed as auditor under section 152 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 Auditors' 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:
In assessing the risk of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following.
- the nature of the sector, control environment and the Charity’s performance;
- results of our enquiries of management and the Trustees, about their own identification and assessment of the risks of irregularities;
- any matters we identified having obtained and reviewed the Charity’s documentation of their policies and procedures relating to: identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance; detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations;
- the matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud. As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud, which included incorrect recognition of revenue, management override of controls using manual journal entries, purchase ledger, and identified the greatest potential for fraud as incorrect recognition of revenue and management override using manual journal entries.
In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.
We identified and obtained an understanding of the laws and regulations that are of significance to the Charity by discussions with Trustees and by updating our understanding of the sector in which the Charity operated in. Laws and regulations that are of direct significance to the Charity and of which non compliance could result in material misstatement are the Charities Act, Charities SORP and tax legislation. In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the Charity’s ability to operate or to avoid a material penalty.
Our procedures to respond to risks identified included the following:
- reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;
- reviewing the financial statement disclosures and testing to supporting documentation to assess the recognition of revenue, in line with longer term contract accounting methodologies;
- enquiring of Trustees and management concerning actual and potential litigation and claims;
- performing procedures to confirm material compliance with the requirements of the above regulations;
- performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;
Page 10
## **TORBAY HOSPITAL LEAGUE OF FRIENDS**
## **INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF TORBAY HOSPITAL LEAGUE OF FRIENDS (CONTINUED)**
- reading minutes of Trustee meetings; and
- in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; and assessing whether the judgements made in making accounting estimates are indicative of a potential bias.
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.
Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from an error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed 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.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.
## **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 Auditors' 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.
**Bishop Fleming LLP** Chartered Accountants Statutory Auditors 2nd Floor Stratus House Emperor Way Exeter Business Park Exeter EX1 3QS
3 October 2022
Bishop Fleming LLP are eligible to act as auditors in terms of section 1212 of the Companies Act 2006.
Page 11
**TORBAY HOSPITAL LEAGUE OF FRIENDS**
## **CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2021**
|**Note**
**Income from:**
Donations and legacies
3
Other trading activities:
4
Fundraising
Trading activities
Investments
5
Other income
6
**Total income**
**Expenditure on:**
Raising funds
Charitable activities
7
**Total expenditure**
**Net (expenditure)/income before**
**taxation**
Taxation
12
**Net movement in funds**
**Reconciliation of funds:**
Total funds brought forward
Net movement in funds
**Total funds carried forward**|**Restricted**
**funds**
**2021**
**£**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**2,000**
**2,000**
**(2,000)**
**-**
**(2,000)**
**65,397**
**(2,000)**
**63,397**|**Unrestricted**
**funds**
**2021**
**£**
**773,952**
**2,052**
**-**
**4,896**
**3,671**
**784,571**
**14,081**
**101,135**
**115,216**
**669,355**
**383**
**669,738**
**2,219,939**
**669,738**
**2,889,677**|**Total**
**funds**
**2021**
**£**
**773,952**
**2,052**
**-**
**4,896**
**3,671**
**784,571**
**14,081**
**103,135**
**117,216**
**667,355**
**383**
**667,738**
**2,285,336**
**667,738**
**2,953,074**|Total
funds
2020
£
732,653
4,158
51,192
5,503
7,899
801,405|
|---|---|---|---|---|
|||||95,608
38,025
133,633|
|||||667,772
-
667,772|
|||||1,617,564
667,772
2,285,336|
The Consolidated Statement of Financial Activities includes all gains and losses recognised in the year.
The notes on pages 16 to 32 form part of these financial statements.
Page 12
## **TORBAY HOSPITAL LEAGUE OF FRIENDS**
## **CONSOLIDATED BALANCE SHEET AS AT 31 DECEMBER 2021**
|**Note**
**Fixed assets**
Tangible assets
13
**Current assets**
Debtors
15
Investments
16
Cash at bank and in hand
Creditors: amounts falling due within one
year
17
**Net current assets**
**Total assets less current liabilities**
**Total net assets**
**Charity funds**
Restricted funds
18
Unrestricted funds
18
**Total funds**|**161,905**
**424,794**
**2,375,925**
**2,962,624**
**(9,550)**|**2021**
**£**
**-**
**-**
**2,953,074**
**2,953,074**
**2,953,074**
**2,953,074**
**63,397**
**2,889,677**
**2,953,074**|82,367
-
2,206,475
2,288,842
(10,993)|2020
£
7,487|
|---|---|---|---|---|
|||||7,487
2,277,849|
|||||2,285,336|
|||||2,285,336|
|||||2,285,336|
|||||65,397
2,219,939|
|||||2,285,336|
The financial statements were approved and authorised for issue by the Trustees on 12 October 2022 and signed on their behalf by:
## **Mr R Tuttle**
## Chair
The notes on pages 16 to 32 form part of these financial statements.
Page 13
## **TORBAY HOSPITAL LEAGUE OF FRIENDS**
## **CHARITY STATEMENT OF FINANCIAL POSITION FOR THE YEAR ENDED 31 DECEMBER 2021**
|**Note**
**Fixed assets**
Investments
14
**Current assets**
Debtors
15
Investments
16
Cash at bank and in hand
Creditors: amounts falling due within one
year
17
**Net current assets**
**Total assets less current liabilities**
**Total net assets**
**Charity funds**
Restricted funds
18
Unrestricted funds
18
**Total funds**|**161,905**
**424,794**
**2,375,547**
**2,962,246**
**(95,024)**|**2021**
**£**
**2**
**2**
**2,867,222**
**2,867,224**
**2,867,224**
**2,867,224**
**63,397**
**2,803,827**
**2,867,224**|81,507
-
2,118,710
2,200,217
(10,760)|2020
£
2|
|---|---|---|---|---|
|||||2
2,189,457|
|||||2,189,459|
|||||2,189,459|
|||||2,189,459|
|||||65,397
2,124,062|
|||||2,189,459|
The financial statements were approved and authorised for issue by the Trustees on 12 October 2022 and signed on their behalf by:
## **Mr R Tuttle**
## Chair
The notes on pages 16 to 32 form part of these financial statements.
Page 14
**TORBAY HOSPITAL LEAGUE OF FRIENDS**
## **CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2021**
|**Cash flows from operating activities**
Net cash used in operating activities
**Cash flows from investing activities**
Interests from investments
**Net cash provided by investing activities**
**Cash flows from financing activities**
**Net cash provided by financing activities**
**Change in cash and cash equivalents in the year**
Cash and cash equivalents at the beginning of the year
**Cash and cash equivalents at the end of the year**
The notes on pages 16 to 32 form part of these financial statements|**2021**
**£**
**164,554**
**4,896**
**4,896**
**-**
**169,450**
**2,206,475**
**2,375,925**|2020
£
625,121|
|---|---|---|
|||5,503
**5,503**|
|||**-**|
|||**630,624**
1,575,851|
|||2,206,475|
||||
Page 15
**TORBAY HOSPITAL LEAGUE OF FRIENDS**
**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
## **1. Accounting policies**
## **1.1 BASIS OF PREPARATION OF FINANCIAL STATEMENTS**
The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - 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), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.
The financial statements have been prepared to give a 'true and fair' view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a 'true and fair' view. This departure has involved following the Charities SORP (FRS 102) second edition published in October 2019 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.
Torbay Hospital League of Friends 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.
The Consolidated Statement of Financial Activities (SOFA) and Consolidated Balance Sheet consolidate the financial statements of the Group and its subsidiary undertaking. The results of the subsidiary are consolidated on a line by line basis.
## **1.2 GOING CONCERN**
The Charity has sufficient cash to meet all known outgoings. Because of the nature of the Charity, cash outflows can be reduced to a minimum to ensure the viability of both itself and the pod. The Charity will only make gifts to the Hospital when there are funds available to do so. There is no ongoing cash requirement within the next 12 months which cannot be met by current funds.
On the basis of the above the trustees consider it appropriate for the financial statements for the year ended 31 December 2021 to be prepared on a going concern basis.
## **1.3 INCOME**
All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.
The recognition of income from legacies is dependent on establishing entitlement, the probability of receipt and the ability to estimate with sufficient accuracy the amount receivable. Evidence of entitlement to a legacy exists when the charity has sufficient evidence that a gift has been left to them (through knowledge of the existence of a valid will and the death of the benefactor) and the executor is satisfied that the property in question will not be required to satisfy claims in the estate. Receipt of a legacy must be recognised when it is probable that it will be received and the fair value of the amount receivable, which will generally be the expected cash amount to be distributed to the charity, can be reliably measured.
Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.
Page 16
**TORBAY HOSPITAL LEAGUE OF FRIENDS**
**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
## **1. Accounting policies (continued)**
## **1.4 EXPENDITURE**
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.
Expenditure on charitable activities is incurred on directly undertaking the activities which further the Group's objectives, as well as any associated support costs.
All expenditure is inclusive of irrecoverable VAT.
## **1.5 INTEREST RECEIVABLE**
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Group; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.
## **1.6 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.
## **1.7 TANGIBLE FIXED ASSETS AND DEPRECIATION**
Tangible fixed assets costing £500 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.
Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.
Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives. .
Depreciation is provided on the following bases:
Long-term leasehold property - Over the term of the lease - Plant and machinery 25% reducing balance - Fixtures, fittings and equipment 20% straight line/25% reducing balance
Page 17
**TORBAY HOSPITAL LEAGUE OF FRIENDS**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
## **1. Accounting policies (continued)**
## **1.8 INVESTMENTS**
Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the Balance Sheet date, unless the value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and presented as ‘Gains/(Losses) on investments’ in the Consolidated Statement of Financial Activities.
Investments in subsidiaries are valued at cost less provision for impairment.
## **1.9 DEBTORS**
Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
## **1.10 CASH AT BANK AND IN HAND**
Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
## **1.11 LIABILITIES AND PROVISIONS**
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 the goods or services it must provide.
## **1.12 FINANCIAL INSTRUMENTS**
The Group only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.
## **1.13 FUND ACCOUNTING**
General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Group and which have not been designated for other purposes.
Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Group for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.
Investment income, gains and losses are allocated to the appropriate fund.
Page 18
**TORBAY HOSPITAL LEAGUE OF FRIENDS**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
## **2. CRITICAL ACCOUNTING ESTIMATES AND AREAS OF JUDGMENT**
Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Critical accounting estimates and assumptions:
The charity makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities have been discussed below:
Critical areas of judgment:
Income from legacies needs to be recognised in line with FRS102. Legacy income is unpredictable and the timescale from notification to receipt can be extensive depending upon the complexity of the estate and there can be uncertainity over the exact amount the charity will receive. Legacies are assessed on an individual basis in order to consider whether there is entitlement – control over the rights or other access to the economic benefit has passed to the charity; Probable – it is more likely than not that the economic benefits associated with the legacy will flow to the charity; and easurement – the monetary value or amount of the income can be measured reliably.
Page 19
**TORBAY HOSPITAL LEAGUE OF FRIENDS**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
## **3. Income from donations and legacies**
|Donations
Legacies
Gift aid
Total 2020|**Restricted**
**funds**
**2021**
**Unrestricted**
**funds**
**2021**
**£**
**£**
-
40,721
-
731,309
-
1,922
-
773,952
10,040
722,613|**Total**
**funds**
**2021**
**£**
**40,721**
**731,309**
**1,922**
**773,952**
732,653|Total
funds
2020
£
58,693
671,159
2,801
732,653|
|---|---|---|---|
|||||
|**4.**|**Income from other trading activities**|
|---|---|
||**Income from fundraising events**|
|**Unrestricted**
**funds**
**2021**
**£**
Wellswood District
-
Torquay Girls Grammar School
247
Pennies for Plastic
6
Raffles and fayres
447
Jewellery sales
412
1,112
TOTAL 2020
4,158|**Total**
**funds**
**2021**
**£**
**-**
**247**
**6**
**447**
**412**
**1,112**
4,158|Total
funds
2020
£
1,380
1,726
491
491
70
4,158|
|---|---|---|
||||
Page 20
**TORBAY HOSPITAL LEAGUE OF FRIENDS**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
## **4. Income from other trading activities (continued)**
## **Income from non charitable trading activities**
|**Unrestricted**
**funds**
**2021**
**£**
Sales
940
Torbay Hospital League of Friends Shop Limited
-
940
TOTAL 2020
51,192|**Total**
**funds**
**2021**
**£**
**940**
**-**
**940**
51,192|Total
funds
2020
£
-
51,192
51,192|
|---|---|---|
||||
## **5. Investment income**
|**Unrestricted**
**funds**
**2021**
**£**
Investment income
4,896
Interest receivable
-
4,896
TOTAL 2020
5,503|**Total**
**funds**
**2021**
**£**
**4,896**
**-**
**4,896**
5,503|Total
funds
2020
£
5,347
156
5,503|
|---|---|---|
||||
## **6. Other incoming resources**
|CJRS
TOTAL 2020|**Unrestricted**
**funds**
**2021**
**£**
3,671
7,899|**Total**
**funds**
**2021**
**£**
**3,671**
7,899|Total
funds
2020
£
7,899|
|---|---|---|---|
|||||
Page 21
**TORBAY HOSPITAL LEAGUE OF FRIENDS**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
## **7. Analysis of expenditure by activities**
|Gifts to hospital
Other charitable activities
Total 2020|**Direct costs**
**2021**
**£**
82,672
-
82,672
21,768|**Support**
**costs**
**2021**
**£**
-
20,463
20,463
16,257|**Total**
**funds**
**2021**
**£**
**82,672**
**20,463**
**103,135**
38,025|Total
funds
2020
£
21,768
16,257
38,025|
|---|---|---|---|---|
||||||
## **Analysis of support costs**
|Office costs
Sundry expenses
Legal and professional fees
Total 2020|**2021**
**£**
6,594
455
13,414
20,463
16,257|**Total**
**funds**
**2021**
**£**
**6,594**
**455**
**13,414**
**20,463**
16,257|Total
funds
2020
£
5,039
67
11,151
16,257|
|---|---|---|---|
|||||
Page 22
**TORBAY HOSPITAL LEAGUE OF FRIENDS**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
## **8. Gifts to hospital**
|Opthamology pachymeter
Ventilators
Stairclimber
Patient Trollies
Patient and Visitor care
Cook and eat sessions
Training room
Other costs
Total 2020|**Restricted**
**funds**
**2021**
**Unrestricted**
**funds**
**2021**
**£**
**£**
-
-
-
33,000
-
17,120
-
12,222
2,000
-
-
87
-
6,393
-
11,850
2,000
80,672
-
21,768|**Total**
**funds**
**2021**
**£**
**-**
**33,000**
**17,120**
**12,222**
**2,000**
**87**
**6,393**
**11,850**
**82,672**
21,768|Total
funds
2020
£
11,908
-
-
-
-
-
3,960
5,900
21,768|
|---|---|---|---|
|||||
## **9. Auditors' remuneration**
The auditors' remuneration amounts to an auditor fee of £6,500 _(_ 2020 _-_ £4,000 _)_ , and statutory accounts preperation, tax compliance and company secretarial services of £4,038 (2020 - £5,297).
## **10. Staff costs**
|Wages and salaries|**Group**
**2021**
**£**
**9,609**
**9,609**|Group
2020
£
17,808|
|---|---|---|
|||17,808|
The average number of persons employed by the group during the year was as follows:
|**Group**|Group|
|---|---|
|**2021**|2020|
|**No.**|No.|
|**1**|3|
No employee received remuneration amounting to more than £60,000 in either year.
The subsidiary of the charity had an average number of employees during the year of 1, including 1 Director of that company and Trustees of the charity (2020: 3 including 2 directors of that company and 1 Trustee of the charity). The shop has now ceased to trade and therefore no longer has any employees.
Page 23
**TORBAY HOSPITAL LEAGUE OF FRIENDS**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
## **11. Related party transactions and trustees' remuneration and expenses**
During the year, no Trustees received any remuneration or other benefits (2020 - £NIL).
During the year ended 31 December 2021, expenses totalling £447 were reimbursed or paid directly to 2 Trustees (2020 - £335 to 4 Trustees).
Two members of the Committee hold shares as nominees for the Charity in its subsidiary company - Torbay Hospital League of Friends Shop Limited.
The company was formed with the express purpose of carrying out all the retail trading activities within and/or connected with the Charity.
Two members of the Committee are Directors of Torbay Hospital League of Friends Shop Limited and received a combined remuneration of £9,609 during the year (2020: £3,552).
As at 31 December 2021, the Charity owed £85,472 to the Torbay Hospital League of Friends Shop Limited. As at 31 December 2020 the Charity was owed £3,140 by the Torbay Hospital League of Friends Shop. No interest is charged on this balance and there is no set date for payment.
The charity considers its key management personnel comprise the Trustees of the charity and Directors of the subsidiary company. The total employment benefits of the key management personnel were £9,609 (2020: £17,824).
## **12. Taxation**
|**CORPORATION TAX - GROUP**
Adjustments in respect of previous periods
**TAXATION ON NET (EXPENDITURE)/INCOME**|**2021**
**£**
**(383)**
**(383)**|2020
£
-|
|---|---|---|
|||-|
Page 24
**TORBAY HOSPITAL LEAGUE OF FRIENDS**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
## **13. Tangible fixed assets**
## **GROUP**
|**COST OR VALUATION**
At 1 January 2021
Disposals
At 31 December 2021
**DEPRECIATION**
At 1 January 2021
On disposals
At 31 December 2021
**NET BOOK VALUE**
At 31 December 2021
At 31 December 2020|**Long-term**
**leasehold**
**property**
**£**
**129,895**
**(129,895)**
**-**
**122,408**
**(122,408)**
**-**
**-**
7,487|**Plant and**
**machinery**
**£**
**7,294**
**(7,294)**
**-**
**7,294**
**(7,294)**
**-**
**-**
-|**Fixtures and**
**fittings**
**£**
**35,378**
**(5,351)**
**30,027**
**35,378**
**(5,351)**
**30,027**
**-**
-|**Total**
**£**
**172,567**
**(142,540)**
**30,027**
**165,080**
**(135,053)**
**30,027**
**-**
7,487|
|---|---|---|---|---|
Page 25
**TORBAY HOSPITAL LEAGUE OF FRIENDS**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
|**13.**
**Tangible fixed assets (continued)**
**CHARITY**
**COST OR VALUATION**
At 1 January 2021
At 31 December 2021
**DEPRECIATION**
At 1 January 2021
At 31 December 2021
**NET BOOK VALUE**
At 31 December 2021
At 31 December 2020
**14.**
**Fixed asset investments**
**Principal subsidiaries**
The following is a subsidary undertaking of the charity:
**Company**
**number**
Torbay Hospital League of Friends Shop Limited
03024219
The financial results of the subsidiary for the year were:
**Income**
**£**
**Expenditure**
**£**
**Profit/(Loss)**
**/ Surplus/**
**(Deficit) for**
**the year**
**£**
Torbay Hospital League of Friends
Shop Limited
**383**
**(10,411)**
**(10,028)**|**Fixtures and**
**fittings**
**£**
**30,027**
**30,027**
**30,027**
**30,027**
**-**
-
**Holding**
100%
**Net assets**
**£**
**85,849**|
|---|---|
Page 26
**TORBAY HOSPITAL LEAGUE OF FRIENDS**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
## **14. Fixed asset investments (continued)**
In December 2020 the trading subsidiary company, Torbay Hospital League of Friends Shop, was informed by the Hospital that due to changes being made on Level 2 where the shop is situated, the break clause in the lease was being invoked. As a result of this decision, the directors have taken the decision to cease trading. The Directors disposed of all saleable assets in 2021 with the bulk of the catering equipment being sold to the Hospital. The company has been deregistered for VAT and arrangements are being made for an application to be submitted to Companies House for the the company to be struck off.
As a result of this, the director of the Company no longer consider it to be a going concern and have, therefore, drawn up the financial statements on a basis other than going concern.
## **15. Debtors**
|**DUE WITHIN ONE YEAR**
Other debtors
Legacies receivable|**Group**
**2021**
**£**
**-**
**161,905**
**161,905**|Group
2020
£
861
81,506
82,367|**Charity**
**2021**
**£**
**-**
**161,905**
**161,905**|Charity
2020
£
-
81,507|
|---|---|---|---|---|
|||||81,507|
## **16. Current asset investments**
|**Group**
**2021**
**£**
Unlisted investments (liquid)
**424,794**
**Creditors: Amounts falling due within one year**
**Group**
**2021**
**£**
Amounts owed to group undertakings
**-**
Other taxation and social security
**-**
Accruals and deferred income
**9,550**
**9,550**|Group
2020
£
-
Group
2020
£
-
350
10,643
10,993|**Charity**
**2021**
**£**
**424,794**
**Charity**
**2021**
**£**
**85,474**
**-**
**9,550**
**95,024**|Charity
2020
£
-|
|---|---|---|---|
||||Charity
2020
£
3,140
-
7,620|
||||10,760|
## **17. Creditors: Amounts falling due within one year**
Page 27
**TORBAY HOSPITAL LEAGUE OF FRIENDS**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
## **18. Statement of funds**
## **Statement of funds - current year**
|**UNRESTRICTED FUNDS**
**DESIGNATED FUNDS**
Equipment commitments
**GENERAL FUNDS**
General Funds
**TOTAL UNRESTRICTED**
**FUNDS**
**RESTRICTED FUNDS**
Cardiac unit
Radiotherapy unit
Diabetic and Asthmatic patients
Neurology department
Heart machines
Patient and visitor care
EAU 3
Endoscopy
Hospital Wards
Cardiology
**TOTAL OF FUNDS**|**Balance at 1**
**January**
**2021**
**£**
**1,512,040**
**707,899**
**2,219,939**
**5,719**
**15,323**
**22,480**
**2,347**
**250**
**14,376**
**500**
**2,010**
**2,000**
**392**
**65,397**
**2,285,336**|**Income**
**£**
**-**
**784,571**
**784,571**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**784,571**|**Expenditure**
**£**
**(1,703)**
**(113,130)**
**(114,833)**
**-**
**-**
**-**
**-**
**-**
**(2,000)**
**-**
**-**
**-**
**-**
**(2,000)**
**(116,833)**|**Transfers**
**in/out**
**£**
**(10,000)**
**10,000**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**-**|**Balance at**
**31**
**December**
**2021**
**£**
**1,500,337**|
|---|---|---|---|---|---|
||||||**1,389,340**|
||||||**2,889,677**|
||||||**5,719**
**15,323**
**22,480**
**2,347**
**250**
**12,376**
**500**
**2,010**
**2,000**
**392**
**63,397**|
||||||**2,953,074**|
Page 28
**TORBAY HOSPITAL LEAGUE OF FRIENDS**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
## **18. Statement of funds (continued)**
The Designated fund represents the future anticipated equipment commitments which have been agreed by the committee prior to the year end.
The Cardiac unit restricted fund represents specific bequests which have to be used towards equipmentand comfort of the patients of the cardiac department at the Hospital.
The Radiotherapy unit restricted fund represents specific bequests which have to be used towards equipment and comfort of the patients of the radiotherapy unit at the Hospital.
The Diabetic and Asthmatic patient restricted fund represents specific bequests which have to be used towards equipment and comfort of these patients.
The Neurology department restricted funds represents a specific donation to be used towards Neurophysiology equipment to be used within the department.
The Heart machines/ambulance services fund represents specific donations and bequests to be used towards heart machines/ambulance services.
The Patient and visitor care fund represents specific donations and bequests to be used towards such costs to provide comfort for patients and visitors of Torbay Hospital.
EAU3 fund represents specific donations and bequests to be used towards the Emergency Assessment Unit.
The Endoscopy fund represents specific donations and bequests to be used toward such treatments.
The Hospital Wards funds represents specific donations and bequests to be used toward the Lilly Derry Ward.
The Cardiology fund represents specific donations and bequests to be used toward such treatments.
The transfer between funds are necessary in order to ensure the matching of incoming resources specifically designated by the Committee with the charity's own resources. Funds are released if the charity recieves notfication that monies are no longer required for the planned purpose.
Page 29
**TORBAY HOSPITAL LEAGUE OF FRIENDS**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
## **18. Statement of funds (continued)**
## **Statement of funds - prior year**
|**UNRESTRICTED FUNDS**
**DESIGNATED FUNDS**
Equipment commitments
**GENERAL FUNDS**
General Funds
**TOTAL UNRESTRICTED**
**FUNDS**
**RESTRICTED FUNDS**
Cardiac unit
Radiotherapy unit
Diabetic and Asthmatic patients
Neurology department
Heart machines
Patient and visitor care
EAU 3
Linen League
Endoscopy
Hospital Wards
Cardiology
**TOTAL OF FUNDS**|Balance at
1 January
2020
£
1,516,000
36,539
1,552,539
5,719
15,323
22,480
2,347
250
14,376
500
20
2,010
2,000
-
65,025
1,617,564|Income
£
-
791,365
791,365
-
-
-
-
-
-
-
40
-
-
10,000
10,040
801,405|Expenditure
£
(29,800)
(94,165)
(123,965)
-
-
-
-
-
-
-
(60)
-
-
(9,608)
(9,668)
(133,633)|Transfers
in/out
£
25,840
(25,840)
-
-
-
-
-
-
-
-
-
-
-
-
-
-|Balance at
31
December
2020
£
1,512,040|
|---|---|---|---|---|---|
||||||707,899|
||||||2,219,939|
||||||5,719
15,323
22,480
2,347
250
14,376
500
-
2,010
2,000
392
65,397|
||||||2,285,336|
Page 30
**TORBAY HOSPITAL LEAGUE OF FRIENDS**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
## **19. Analysis of net assets between funds**
## **Analysis of net assets between funds - current year**
|**Restricted**
**funds**
**2021**
**Unrestricted**
**funds**
**2021**
**£**
**£**
Current assets
63,397
2,899,227
Creditors due within one year
-
(9,550)
**TOTAL**
63,397
2,889,677
**Analysis of net assets between funds - prior year**
Restricted
funds
2020
Unrestricted
funds
2020
£
£
Tangible fixed assets
-
7,487
Current assets
65,397
2,223,445
Creditors due within one year
-
(10,993)
**TOTAL**
65,397
2,219,939
**Reconciliation of net movement in funds to net cash flow from operating activities**
**Group**
**2021**
**£**
Net income for the year (as per Statement of Financial Activities)
**667,738**
**ADJUSTMENTS FOR:**
Depreciation charges
**-**
Dividends, interests and rents from investments
**(4,896)**
Loss on the sale of fixed assets
**7,487**
Decrease in stocks
**-**
Increase in debtors
**(79,539)**
Decrease in creditors
**(1,444)**
Impairment
**-**
**NET CASH PROVIDED BY OPERATING ACTIVITIES**
**589,346**|**Total**
**funds**
**2021**
**£**
**2,962,624**
**(9,550)**
**2,953,074**
Total
funds
2020
£
7,487
2,288,842
(10,993)
2,285,336
Group
2020
£
667,772
13,355
(5,503)
-
1,341
(52,822)
(31,861)
32,839
625,121|
|---|---|
## **20. Reconciliation of net movement in funds to net cash flow from operating activities**
Page 31
**TORBAY HOSPITAL LEAGUE OF FRIENDS**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
## **21. Analysis of cash and cash equivalents**
|Cash in hand
**TOTAL CASH AND CASH EQUIVALENTS**|**Group**
**2021**
**£**
**2,375,925**
**2,375,925**|Group
2020
£
2,206,475|
|---|---|---|
|||2,206,475|
## **22. Analysis of changes in net debt**
|Cash at bank and in hand
Liquid investments|**At 1**
**January**
**2021**
**£**
**2,206,475**
**-**
**2,206,475**|**Cash flows**
**£**
**169,450**
**424,794**
**594,244**|**At 31**
**December**
**2021**
**£**
**2,375,925**
**424,794**
**2,800,719**|
|---|---|---|---|
## **23. Contingent asset**
The Charity has been notified of a residuary legacy where a reliable valuation of the estate cannot be calculated, and therefore the legacy due to the Charity cannot be made. As the outcome is currently uncertain for this legacy they have not been recognised within the financial statements.
Page 32