THE ROYAL SCOTTI.8H CORPORATION THE SCOTTISH HOSPITAL OFTHE FOUNDATION OF KINC CHARLIIS 11 (OPERATINC. AS"SCOTSCARE") REPORT AND FINANCIALSTATEMEP4TS FOR THE YEAR ENDKD 31 MARCH 2022 Charity Number.. 207326 THE ROYAL SCOTTISH CORPORATION THE SCOTTISH HOSPITAL OF THE FOUNDATION OF KING CHARLES 11 REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 March 2022 CONTENTS Page Ref¢Tence and administrativ¢ infoTmation ChaiTman's introduction Highlights 2021 to 2022 Trustees, report Independent auditor5, r¢port 15 Statement of financial activitie5 18 Balance sheet 19 Cash flow statemenl 20 Note5 to the finaiicial statements THE ROYAL SCOTTISH CORPORATION THI SCOTTISH HOSPITAL OF THE FOUNDATION OF KING CHARLEIS 11 REFEREP4CE AP4D ADMINISTRATIVE INFORMATION FOR THE YEAR C4 NDED 31 MARCH 2022 Patron: Ills Majesty King Charle5 111 Prineipal Office: 22 City Iload, Londoii, EC IY 2AJ Viee Pi'e5ident5: S. J. Steele P.J.M. Scott Treasurer Colitt Sornerville Trustees: Elected Member5 of the Comrnittee of MaNagemeiit: J. Cliestjiut (Chaii'tnan) D. Guild J. GTieve B. Griffin P.J.M. Scott J. 14arvÈe A. Chr￿stie K. Lynch (Vice Chair) C. Mccahon W. GilmoiE D. Mcmurtrie C. Ross r. Orain (resigned July 2022) Iitsigned July 2021) (appointed Vice Chait July 2021) {appointed July 2021) {appointed July 2021) In addition tl)e Treasurer and Honoi'ary Solicitor are Ex Ofyicio Members of tlie Coillmittee of Managemenl. Other A ointments.. Cliief Execiitive and Secretary: Sliona Fleiming Honorary Chaplain: I'lie k¢vereiid Ajigus MacLeod Honorary Piper Pip¢ Major J. McLucas 'rHF. IIOYAL SCOT'I'ISH CORPORATION 'rHE scorrisH HOSI>II'AL ofi THE FOUNDATION OF KINC. CHARLES 11 Rfi FfiRCI NCE AND ADMINISTRATIVE INFORMATION (eontinued) FOR THE YEAR f4 NDEID 31 MARCH 2022 Auditors: Haysinacintyre LLP 10 Queen Sire¢t Place Loiido EC4R IAG Honorary Solicitor: Danny Tsang Sinimon5 & SimTnons LLP CityPoint One Ropeinaker Street London EC2Y 9SS Banl£ers: The Royal Bank of Scotland plc I, Fleet Street, London EC4Y IBD Invcslmelll Adviser.. Sarasin & Paitners Ll.P 100 St Paul's Churchyard I,ondon EC4M 8BU THE ROYAL SCOTTISH CORPORATION THE SCOTTISH HOSPITAL OF THE FOUNDATION OF KING CHARLES 11 CHAIRMAf4'S INTRODUCTION FOR THE YEAR ENDED 31 MARCH 2022 Dear Fi-iends, It is with great sadness that ive mAI'k the passing of Her MHje5ty Quten Elkzabetli 11. Iler MHje5ty IYk5 Pati'on of The Royal Seottish Coi'por'ation thi'oughout hei- reign and our heartfelt sympatljy goe5 to Kiiig ClIArle5 111 aiid the Royal Family. l am piivileged to be able to present our annual Repott and fii)ancial Stateinertt5 foi. tlie year ended 31 Mairh 2022. Much was achieved diii'ing the year despite the conliiiuijig effects of th¢ paiideini¢ ond to a significant de￿ee the activities of rhe chariiy were back to pi'e-pandemic levels. This was due to the dediLation and hard work of our Chief Executive Shona Fleming alld Iier capable team. The charity continues io be strong and stable. Our mission is lo l)elp scots in need within the Cjreatei. Lomdon area in a variety of ways, depending on assessed nccd.. liousingi health (physical and mentall, advocacy, fiiiancial grants. training, housing advice, volunteer prosFiatntne, career coaching, ¢ounselling, respite holidays and social eveiits. In recent yeaTS we have increased our focus on supporting childi'en and families, the objective being to stop the cyclc of poverty, low educational attaininent and uneinployment. In the continuing unpT¢dicÉable Covid eiivironment the charity maintained contact with all clients and whilst some of our programm¥s had to be Luilailed (such as 50cial events) the majority of piDbJramtnes were iji place at]d in Some case$ expandedlsuch as counselling, psycliotherapy and family activity holidays). We coiitinued to take a flexible approach Éo meet the ¢UTTent necds of clith)ts (sueh as grants to help home schooling and food pgrceI5 for thos¢ self-isolating). Our three sheltered housing sites now provide 96 flats in total. 48 in l.ewisham, 28 in Bamet and 20 in Wimbledon. Effective communicatson continues to be an important ai'ea of focu5. It 15 critical that we continue to develop awareness of ScolsCaTe Ilirouglioul the Scottisli community in Londoii and this yeai. has featured our signature film l'eaching the finals of the Charity FilTll Awards, bannor% at variou$ goccer and rugby ev¢nt5, presence at community eveiils as well as advertising across a range of platforms fi'on) Facebook lo traditional press. In addition we have foi'med a new Arnba5sadoTS Club to help i'aise awaiEness of a]id suppoi't foi. ScotsCar¢ and Irpresent the Charity across tlieir various constiiuencies. Welcome to each of our new Ambassadors. In the Tru5tees' Report you will see details of the extensive and varied work done by our staff of 21 and Vlilunteer group of 61. Oui. CEO and her teain have been proaetive and flexible and, as an example, have moved quickly to Teflect changing work piaclices by reducing ihe iieed foi. office space. We are forlunate to Iiave such a body of iii)pressive people, particulaily in Iliese cliall¢nging titnes. Thftnk you to everyone. As a body of trustees, our prliject to review our governance sti'ucture to ensure it is relevant and e￿i¢]ent for a 2 1st century chai'ity has concluded with the approval by the Charity Commission and th¢ Pi'ivy Council of substantial modei'nising changes to our C(Fiistitution. These changes took effect in Maich 2022. Thank you io all my fellow Irusiees, including those who liav¢ retii'ed during the past year, for their dedi¢atioll and hard ivork. Tliank you also to all who generously donaied to Scotscare during the year, whether funds or time and t8Ients, you are critical to i)ur niission. anies Che51nut Cliairmaii HIGHLIGHTS 2021 to 2022 93% 432 children awarded clothing grants totalling £65,200 A tolal of 896 grants were awarded to clients 280 Indlvld a￿Tr8ellIng 5•5slons offered 60 children's activity grants awarded, totalling £36,722 d ¢omw•n ol slaff was axcollent or Over 400 years of Scotscare Advocacy resulted in 84 clients receiving back payments totalling £285,556 over last 4 years Nearly 40% of support applications made in online portal In Instagram chlldrnn up SGOtsCare Signature Film linalFSt at the Charity Film Awards The charity for Scots in London 949b SUGGess rale in accessing seivices with Advocacy rnnts provi iotalling £35. sldonts xr houBlng 86% 90% 100 51,367 minutes of Blether Buddies speaking with clients of clients eitheT very satislied or satisfled with their experience of S¢otsCare's services Dclud4d 100 hlldren wefe lonPGL li•nls In the y•ar THE ROYAL SCOTTISH CORPORATION THE SCOTTISH HOSPITAL OF THE FOUNDATION OF KING CHARLES II TRUSTEES, REPORT FOR THE YEAR ENDED 31 MARCH 2022 The Royal Scotti51i Corporation ("the Corpoiatioll"} is tlie working naine of the Scottisli Hospital of the foundation of Kii)g Chai'les 11. It operates iiiidei. the name Scotscare aiid Ès registei'ed witli tlic Chai'ity Coinmi%sion far Lngland and Walc5- registration number 207326. Details of tlie principal office, Ti'ustees, Lliief Executivc and principal advisers can be found in the reference and adiMiMi5trative infonnatloll 5ectioii on pages l and 2. The Trustee5 present their repoit and the audited Fiiiaii¢ial Stateinents for the year ended 31 Mar¢h 2022, which have been pi'epaied in accordance witli tlie provisions of the CUiTent Statement of Recommended Pra¢tice Accounting and Reporting by Cli Comimittees. Detailcd coiisideTation of Ilie risks 10 which the Corporation is exposed is delegated to tl)e Audit Sub-committee, whi¢li is assisted by ihe management team. White il is not possible to fully mitEgate the rEsk, thTough establi%hed risk management proce*%es, Ive are sat15ficd those systems and procedures arc in platc to manage the ri.%k8 identified whÈle T￿ognIsing tha¢ these systeins can only PTovide Tea%onable and iiot abstslute assurahct. The key risks to which the Charity is exposed are the loss of investment income, the rtsignation oi. ill health of the CEO and the health aiid 88fcty of staff. The Tmstees have borne the investmellt income Ti%k in iiiind when determining the level of flee resei'ves and Icuularly L'cview oiii. reserves policy. Our CEO maiiagcs 8 strong Senior managen)ent team with the appropriate skills and experience to managc the day to day operation5 sh()iild theiE be a Ioss of key staff. In ielation to the health and safety nf the charity's employoes, the charity followed government Ci)vid-19 guidance and implemented the appTOPTiate risk £issessinenls. Furthern)ore, the Charity considers its Sic1ff may be at personal Tisk when woi'king ivith clients and iiiierview rooms have been designed io miiigaie Iliis I'isk, logeilieL' W5th appropTiate written proceduies and a loiie workiiig alert system (Look Out Call) foi" siarrio use and follow when woi'king oiitside the office. Related artles None of tl)e Ii'ustecs Itceives remuneraiion oi. other benefiis fi'om their work with the charity. Trustees arc invited tts declare any I'elevant interest5 at each bo£ird meeting and are formally requesred to submit an annual Tel8ted pai'ty and coiifli¢t.% of interest form. Boai'd Inembers have ieported no ielevant inieiesis or Iransactions. THF. ROY AL SCC)TTI.SH CORI){)RATIC)N THF. SCOTTISH HOSPITAL OF'fHE FC)UNDATION OF KINC CHARLES 11 TIIUSTCES, REPORT (contiiiiied) FOR Tllf YEAR F.Nl)fD JI MARCH 2022 ualitv and diYer5lt We al'e conimitted to equality and diveTsity at Scotscaye and ensure thk)t witliin the fvamework of the law tliat our ivorkplace 15 free from unlawfi1￿ oi. unfaii. discriniination because (Jf pi'otected charaetei'istics as defined by the Eqiialiry Act 2010. AII employc¢s are provided with a copy of our policy as pail of their induction process and ie expected to abide by it. failure to do so, i'¢sulting in discTimination, can be ti'eated as gr058 miscnndLlCt. This i)olicy applie% both to behavi(Jur in the workplace aiid reci'uitmeiit practiees. We are eTkgaged in nionitoring at board and staff level equality and diveysity wiihin the oiganisatÈon. Strate Scot8Care ha8 provided support to Seois and their fk)milies in London for over 400 years. Oiir strategy for 2019 to 2022 sets out our objectives foi. tl)ree priority clients.. childi'en and families. older people and working ge adults. Royal Charter The objects of the Corporation shall be for the public benefit to IElievc eitl)er generdlly or iMdividii8lly persons resident OT found wiiliin a iadius of 35 miles of ClTrariiig Cross who are iii coiidition5 of need, Iiard5hip or distlES5 in Such H'ay5 that are charitable in law, being persons who weir born in Scotland or persons one of whose parents itl each case was born in Scotland or widows, widowers aiid survivois of civil p&rtnei'ships of persons ￿,hO were bom in Scotland or widows, widowers aiid sui'vivoi's of civil partnerships uf pei'soiis oiie of whose paren15 in each case was born in Scotland. Vi51011 Our vision is an end io tlie cycle of deprivation experienced by Scots aiid their families living within a 35-mile radiu5 of Chai'ing Cross. Purpost Our piirpose is to provide financial. prnctical, and emotional SUPPOTt to S¢ot5 and their families living within a 35-mile radius of Charing Cross. Value5 Our value5 are that we are a caring, pi'ogressive, and effective organi5ation. Caring To pl.0v￿de a high quality of suppoit to Scots and theii. families. Pi'ogressive Listening to the Iieeds of our beneficiaries and respoi)din¥ to that need iii a way that breaks rht cyLle of depi'ivation. Effeetlvc Good govemance. parlnership working and investment IM oui. people 15 key to vur 5ULLess. Our client5 Scotscare assists Scots and theiT families who are in need of financial, practical, and emotiortal assistance. Historically, the organisation ha5 delivered a giant giving programme but has evolved to pi'ovide a holistic service to clienls Ihal iiicludes a tieeds led assessn)ent to provide diiecl services or signposting to specialist siipporl services. THE ROYAL SCOTTIS14 CORPORATION THE scorrisH HOSPITAL OF THE FOUNDATION OF KING CHARLF.S 11 TRUSTEES, REPORT (continued) FOR THC YEAR ENDED 31 MARCH 2022 Our clients (eontinued) Mosi of OLir clients have siipport needs over and above fInancial assistance. Many are socially excliided from society and face a combination of linked probleims %uth as uneTnployineiit, poor Sk￿lIs, low inconJe.%, i)oor lioiising, livii)g in areas of Iiigh criime, bad Iiealih and fainily birakdoivn. These problems are linked and mutually Irinforciiig so that they can treate a vicious cycle in people's lives. Our clients receive state beiiefit5 oy ale on low ilico1￿¢s, generally without suppoi't i)etworks, socially isolated and often Iinable to negotiate the public sector syslem, including tlie benefits 5yStein. A sigiiificant nllinber of ouj. clients Iiave additional support needs such as mental and pliysital ill healtli, debt problen)s and issues ai'ouiid substaiice misuse. Our prioi'ity clients are.. Children and families Older people Working age adults Stralegic obje¢tiv&s Children and families All fainilies cai) face (lifficiilt lin)es. wl)trh¢i- it'5 a par¢iit Iviih a dEag7iiosed meiital l)ealth probleiii, siibstaiice n)isuse issues or poor Iiousii)g exacerbaled by loiig ieiin povei't),. We wailt io lielp faniilies by providing sei'vices thal will support tliem Our objeelives will be to help Ihem: reduce ihe effecis of poverty Ihi'oLtglJ financial assistante,. have their voice511¢2rd through adV￿arY on issues that are important to them; addre%s the issues faced by children and families lo impi'ove Iheii. n)ental and physical wellbeing,. engage witli traiiiing and einploynient oppoi-lunitie5' and, access social, cultural aiid educalional opporiunities for their Lliildren. Older people Biiilding a sense of community,. redllciRgJ sOC￿al isolatioii and loneline5S,' PTomoting well-being and healthy living is all patt of providii)g oui. clients wilh services thttt are suited to theii. iieeds. Oui. objectives will be to help them,. incrcast their iiidependencc within the coniTnunity,' rediice their social isolatioii and loneliness. access liousing dPPI'opfi(Ite to tlieiT iieeds., increase their diujital skills knowledge. and, access social activities. Working age sdult5 Providin(F accel% t(Tr training and job coaching Eupport wliich moves individuals closer ro eniployment is ai) iTnpoitant aim of this sts'ategy. Our experience 15 that not all clicTrt% can engage ivith these oppoi1uiiities, biit for those who cai), we will prnvide access to tailored support. Our objeetives iyill be to help them: identify barrieis to ¢mploym¢nt- engage with personalised job coaching; access ¥ran15 foi specific Iiainingy or education coui'ses. and, move into employment. THE ROYAL SCOTTISH CORPORATII)N THE SCOTTISH HOSPITAL OF THF. FOUNDATION OF KINC. CHARLfiS 11 TRUSTEES, REI PORT (eoiitiiiued) FOR THE YEAR ENDED 31 MARCH 2022 slipp￿rt $erYice$ To reali5e oui. strategic objectives we will aiim to provide.. All elients, a& appropriate, willi.. access to oui. l)elpline aiid walk-in service as the fir51 poii)t of Lonlacl. individual assessment of iieed and benefits check., biidgeting advice aiid del)I refcri'al if appropriate., financial gi-ants to purcliase houseliold iteEns,' udvo¢aLy' ¢ouiiselling,' signpo8ting to health and substance misuse services., liousing advice; and, acces5 to volut]l¢ering opportunities. Childi'en and families Ivith: job coachiiig ai)d grants for traiiiing. volunteer befrienders., access to a programnie of aiinual social eveiits,. access to Qui. voluiTrteei'iiig opportiiiiities; childien's clothing and activity grants,. aiid, childien and families activity holidays. Oldei. people Ivith.. a5se5snient of need foi. Scot5Care'5 sheltered housing. pi'ogi'an)tne oFannual So¢￿21 events. volunteei. befrienders. and, volunteei. tech buddy programme. Woi-king age adults ivith.. girants for training or study- and. job coaching. Athlevements and Performanee PublTe Beneflt The Trustee% have had regard to the Charity Commission's guidance on Pllblic benefit during the year. The Charity meets the Piiblic Benefit test %et oiit by the Cliarity Coinmission by providing the following services.. shelte￿d housing on thire sit¢s iii London.. Grove Park in Lewisham. Whetstone in Barn¢t- and Worpl¢ Road in Wimbledon. Re5ideiits must b¢ over 55, or over 50 with a signÈfi¢ant disability, to qualify for the sheltered hoii%ing; an exlensive menu of financial grants and regula¥ moiithly allowances. support services.. advoLacy,' psychotheiapy and job coachin signposring ro other services generally., voliinteei'iiig oppoilunities across the oiganisation. grants to help students aiid the ujieinployed who requii'e additional tTaiiiing before irturning to woi'k. and, an annudl programnie of social events for families and older people. To qualify foi. any of the abuve, ali applicant must be assessed by the Corpoi'atioii's professional staff and Iiave exl)ausied state oi. oiher welfare provision. The Corporalion's staff assists iii this process by cai'rying out a benefits clieck to ensure the proper iake-up ofsiaie benefit enliileineiil as well as sigiiposting to I'elevaiit services. THF. ROY AL SCOTTISH CORPORATION THF. SCOTTISH HOSPITAL OF THf. FOUNDATION OF KING CHARLEIS 11 TRUSTF.ES' RF.PORT(continued) FOR THr. Yri AR f4 NDF.D 31 MARC.H 2022 Nunibers of the mernb¢i's of the piiblic bcnefitting from oiir.$ervic 2021-22 2020-21 2019-20 Affordable hoysillg Regulai. Inonthly allowances Financial grallts Tiained glld suppnilcd vtslunteer Blctlier Buddi&% befi'iending project Nun)beT of people attending sgcial eve￿It$ Helpline calls 8tt]d¢iit and training gi'ants Adults assessed for sei'vices Children benefitting fTom Services Advocacy rases Couiiselling sessions Job c1￿ChIlig 96 34 896 61 55 840 6,368 25 538 423 95 244 96 49 807 76 73 84 49 1,056 77 1,548 7,070 29 724 452 6,269 30 564 255 268 317 Deiailed olle-to-one pssessinents are carried out at the client's home, on the telephonc or at oui. office on City Road. The asse5snieiit includes the collection of infonnation tliat helps us to provide the most appropriate services that tackle long- term deprivatEon. Our objective is to identify aiid achieve defined outcomes for each client, thus measuring and quaniifying the impact we have on our ¢lient5' lives. This moTe focused approach has resultcd in more grants and sei'vices to rhe most vulnerable of clients, and the impact of oui. intervention has been greater for most clients. Expenditure by Priority 2021-22 2020-21 2019-20 S l- cliildren and families 2-older people S3- 11'orkillg ag¢ adult5 190,445 75,314 95.709 194,337 63,526 94,176 229,830 80,1142 123,488 TotHI 361.468 352,039 434,160 THC ROYAL SCOTTISH CORPORATION THE ScO￿lSH HOSPITAL OF THE FOUNDATION OF KING CHARLES 11 TRUSTEES, REP()RT (continued) FOR THE YEAR EINDF.D 31 MARCH 2022 Vtsliinteer prngr8mme Our volunteei's pi'ovide significant stjpport aiid assisiance Across the OTgaiiisation. Due to Covid-19 many of the support roles to assist staff and clients oil an ii)-person basis were stoppcd. Our teleplione befriendiiig service has expandcd to support existing and iiew Clieiits during tlie pandemic and beyoiid. In total, our voluiiteers gave 2,502 1)oui's 10 various roles across the oig8nisatioii, We aTe fully comniitted to pi'oviding our volunteers with the best training so tliat tlie organisation continues to benefit from tl)eii' iT)PUt. Over the past year, oui. volunieers were able to fijifil the following roles.. Bleihei. Buddy befri¢nd¢F (at home) Bleiher Buddy befriender (telephoiie) Tecli Buddy Travel Buddy Re¢eption Monthly lunch clubs for over 50s Aiiendanc¢ at annual client outings Adiniiiistrative Conimuni¢ations team support R¢sidents' coffee mornings 25 10 32 15 Monitorin and Evgluation li) line witli our strategic objectives, we monitor and evaluate our work by Using an outcomes framework to tiack the prouJre55 of individual clients over the course of their involvemenr with us. These outcomes consider a Tange of indicators and aTe reported to Trustees on a quoiterly basis. Our client database and theory of changc dgshboard provide further ways to moiiitoi., evaluate and IEPOlton our work. As parr of ourtheory of change work, we collttt information from our children and families, clients so tliat we can build a picture of longei'_ierm outcoimes by tracking their children's progre￿ through the national pupil database. We contÈnue to use a s¢rie5 of surveys developed to I'eceive regulai. feedback from clients, tenants, and volunteers to measure sat&sfactioii levels and aieas foi. iinpi'oveinent or additional services. The purpose of these surveys is to help detei'inine futur¢ strategy and to assist with the planiiing and improvemeni ofspecific services. The feedback also provides the Iiecessgry evidence of Scotscai'e's effectiveness and inciEases awai'eness of ollr seivioes ainongst our beneficiai'ies. Raisi our rofile lii¢re8sing Asvarene5S The importance of raising awaiEness through oui. coinmuiiications is impoi'iant to us if we are to reach Inoi'e Scots in Lolldon who need our help. Our Communications Strategy for 2020-22 was developed to strengthen the biand identity and to ensure that we covtinue to communicate effectively internally and externally with the appropriate k¢y m¢ssages 10 our staff, volunteeTS, clients, and key Stakehold￿3. Ncw Amba55adors Cliib Scotscare needs Iielp to raise awareness of lis woi'k and to raise funds. Our Ambft551tdoTS play a vital role in represenring the c.harity amongst theii. personal and pi'ofessional network, speaking abolit our work and thc impoilance of the funds oui. supporters iaise. The role involves our Ambassadors using Iheii. neti¥ork of contacis ii) the busine55, cominei'cial. political, and other 5ectOTS and around l.ondon to increase awareness aiid support for Seotscare. We hope to expand the Club over the coining year. Markelirtg An Or￿anEe social n)edia carnpaign raii fiDrn April to July with the lielp of consiiltancy fim1 Tuesd&y Media to promote support soi'vices and our 8iullature and other filnis which IEsulted in ali increase in our social media reach. Lessoiis learned froin this Campaign liave been CaTried forward into tlie oiigoin(J social media plan wirhin the charity. We tontiniie to iise ilie GP surgery and A&F, leaflet distribution service whicli saw leaflet pickup rates gradually incre8se as surgeries ieopeiied post pandeinic. We produced a new 'interim' leaflet to pi'oniote oui. new childiEn's psychotheiapy service and partnership with Westminstei Centie for Younty People. We ivere delighted to ¥each the finals of rhe Chai'ity film Aivards in March 2022 witli our Signature fTrlni and althouuh we didn't win, the exposure was invaluable. Advert15ing Adverts promoiing 8¢otsCare and our services. in particular gul. sheltered housing were iii seveyal papers.. Cftmden New5 Journal, Wesiminstei. Extra. Islintsion TTibui)e, South Lond(hn Press, Merciiry. Islington Gazetie, Hackney Gllzette. ai)d th¢ THf. ROY AL SCOq'TISH CORPORATION THC SCOTTISH HOSPITAL OF THE FOUNDATION OF KING CHARLCS 11 TRUSTKF,S' REPORT(eontiniiedl r4OR THf. YEAR f4 NDF,D 31 MARCH 2022 East Loiidon Advertisei". Adverts also featured in niagazines: Primrose 14ous¢, Directions Magazine, GP Flealth Magazines, and Caledoniiin Club M.uklauditorsresponsibilities. This description forins part of our auditor's report. 16 INDCI PENDENT AUDITORS, REPORT TO THE TRUSTEI ES OF THE ROYAL SCOTTISH CORPORATION THE SCOTTISH HOSPITAL OF THE FOUNDATION OF KING CHARLES 11 FOR THE YEAR ENDED 31 MARCH 2022 Use of oui. I'eport Tliis iepoil is made solely to the chai'ity's Ii'uslees, as a body, in ac¢oi.dante with seciioii 144 of the Chw'ities Act 201 l and i'¢gylatioi)s Inade under section 154 of thal Act. Our audit woi.k has beeii undeTlaken so tliat we might state to the cliai'ily'5 tiwstees tl)ose matters we are iequiied to slate lo tliein in ali Auditoi s i'epoi't ajid for no othei. purpose. Tv tl)¢ fulle51 extent periiiitled by law, we do nut accept or assujne respoll5ibilily lo anyone oiliei. ilian tlie cliarity's ti'ustees as a body for our audit woi'k, for this report, or foi. the opinions we liave fOr1￿ed. LLP Haysinacintyi'e LLP Staiutory Auditors l O Queen Streei Place London EC4R I AG Date.. 15 NoYcn]ber 2022 Haysmacintyre LLP is eligible to act as ali auditor in temis of sectioi) 1212 of the Companies Act 2006. 17 THC ROYAL SCOTTISH CORPORATION THE SCOTTISH HOSPITAL OF THE FOUNDATION OF KINC CHARLES II STATEMCNT OF FINANCIAL ACTIVITIES FOR THE YIIAR ENDED 31 MARCH 2022 Resti'icled Futt(l* Toinl 2021 2022 2022 2022 2022 Notes Income from: Dondiions and lebjacies Grants- CJRS 24,381 24.381 41,092 85,295 liivesliiieiil& 1,252,485 1,252.485 1,369,303 Clitsrlimble ucilvllles Iiicoine fTOtn Jesidential pi'operty Ii)coiMe fi'om services in I'espect of liomeless people 1,280,455 1,280,455 I, J41,808 70,548 70,548 76.352 Total in¢ome 2,627,869 2,627,869 2, 713,850 Expenditure on: Rftlsliigfiiiiils Investment management costs 62,846 188.538 251.384 283,217 Clifirllable rtcllvllles Welfare Resideiitial housing Other 1,560,859 873,223 1,560,859 873,223 3,192 1.455,095 778, 158 3,192 Total expendl(ure 2,496,928 3,192 188,538 2,688,658 2,516,470 Net ineomel(expendlture) before investment gainsl(losses) 130,941 {3,192) (188,538) (60,7891 197,380 Realised (lossesygains on investments Uni'ealised gains on investnieiits (402) (4021 590.&05 2,369 1,295,729 1,298,098 O,Lf19.399 Net realSscdlllnrealSsed gRlns 12 2,369 1,295,327 1,297,696 7,210,204 Net movement In thnds 130,941 {823) 1,106,789 1,236,907 7,497,584 Total funds brought forward 10,999,562 62,064 44,940,876 56,002,502 48,594,918 TOTAL FUNDS CARRIED FORWARD 11,130,503 61,241 46,047,665 57,239,409 56,tJ02,502 All transactions are derived fi.om continiiing activities. All recognised gains ai)d losses are included in th¢ Stateii)ent of Financial Activities. TIIE ROYAL ScO￿lSH CORPORATION THE ScO￿lSH HOSPITAL OFTHE FOUNDATION OF KING CHARLES 11 BALANCE SHfi ET FOR THE YEAR ENDCI D 31 MARCH 2022 2022 2021 Notes FIXED ASSF.TS Tangible assets Investments 10,316,531 46,536,585 10,24S),203 45,418,040 12 56,853,116 55,667.243 CURRF,NT ASSETS Debtol's and piepayments Cash at bank and in hand 13 152,362 582,670 135.035 637,920 735,032 772,955 CREDITORS.. amounts falling due within one year 14 (219,109) 1312,516) NET CURRENT ASSFTS 515,923 460.434S CRF.DITORS.' amounis falling due after more than one year 15 (54,1801 (4S). 730) Provisions for liabililies and charges 18 (75,4501 (75.450) 57,239,409 56.002.502 FUND BALANCES Endowed Funds Restricted Incorne Fund Uniestricted Income Fund 19&20 19&20 19&20 46,047,665 61,241 11,130,503 44,94(1.870 62.064 10,999.562 TOTAL FUNDS 57,239,409 56,002,502 The finaiicial statements were approved and autliorised for issue by the Trustees on 12 October 2022 and are signed on its behalf by.. Chest Chairman C. Somcrville Treasurer 19 THE ROYAL SCOTTISH CORPORATION THE sCO￿lSH HOSPITAL OF THE FOUNDATION OF KING CHARLES 11 CASH FLOW STATC4 MENT FOR THE YEAR ENDED 31 MARCH 2022 2022 2021 Cash floivs from opei'aliiig activiti (1,217,654) (862.459) Cash floiws from invesliiig activiti¢S Divideiids and iJit¢irst PuTchase of iiiveslmeiits Purchase of fixed assets PIDceeds from Sale of investments 1,252,485 1480,789) 1269,232) 223 J,309.303 (J2. 769, 787) (1,367, 741) J3,lQ4,455 Net caslj provided by inve5titig activities 502,687 426,230 Change in c4sh 8nd cash equivalents in the year {714,967} (436,22P) Cks11 and cash equivalents at the beginnitig of the y¢ai' 1,298,090 1, 734,319 Cash and cash equivalent$ al tlie end of the reporting year 583,123 J,298,090 NOTES TO THE CASH FLOW STATEMENT 2022 21121 Recoiiciliatioii of Dlet Moveinent in Funds lo Nel Cash Floiv froin Operating ActivKties Net moveinent in funds (tiains) on inveslmei)Is Depreciation charges Ilnciease)Ide¢rease in debtoi IDecrease)lincrease ii) cieditors Dividends and inlerest fi'(Trm investnients ,236,907 {1,297,696) 201,904 (17,327) (88,957) {1,252,485) 7,407,584 (7,210,204) 136,210 56, 706 116,548 (1,369.303) Net cash used in opei'ating activltles 11,217,654) (862,459) Analysis ofcash Cash Equlvalents 2022 2021 Cash al baiik and in Iiand Cash held by investiment mana¥ers 582,670 453 617,920 660, 170 583,123 J,298,090 Note 17 sliows Ilie net movemenl in fundsldebt. 20 THE ROVAL SCOTTISH CORPORATION THE SCOTTISH HOSPITAL OF THE FOUNDATION OF KINC CHARLES 11 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 I. ACCOUNTING POLICIES 1.1 BASIS OF PREI PARATION The finaiicial 5tateinents have been piepayed in accordance willi Accoutittng aiid Reportiiig by Chai'ilies.. Statement of Reconitneiided Pi'actice &pplicable to cliai'ities preparing Ilieir accoiinls iti a¢coi'daii¢e willi Ihe Fiiiaiicial Reporlillg Standard applicable in the UK aiid Ilepublic of li'elaiid {FRS lo212￿4 edition effective foi. pei'iods coi)111)eiicing on oi. £ifter l Jai)uai'y 2019 - Ichai'ities SORP FIIS1021, the finajicial R¢porting Standard applicable in the United Kin¥dom and Republic of li'eland (bRS 102) and the Charities Act 2011. Tl)e cliai-ity coi)5titute5 a publEc benefit entity a5 deliiied by fRS 102. Assets alid liabilities ale initially reeognised at histOL'ical cost or tran5actioi) value unless Otherwise stated iji tl)e r¢levai)t a¢couiiting policy notes. Going Coneer Given the cliai'ity's level of free reserves available at the y¢ai' end, the l-ruslees considei. t5ial tlie chai'ity has adequate resoLirce5 to continue in opei'atioiial existence lor the foreseeable fLilui'e aiid tliat thei'e is no Imalerial uiicei'lainty conneLted witl) the cliarity's ability to coi)tiniie to opeizte as a going coi)cern. Accordingly, the financial statements have been prepared on a going concert] ba5ES. Significant jiidgements and estimate5 Jiidgenients n)ade by tlie ti'ustees, iii the application of these accouiiting policies have significant effect on the fii)ancial statements. In the opinioIi of tlie tTUStee5, in 2021-22 the significaiit judgeinents and estimates were applied to retired slaff pei)5ion5, t￿le u5efiil economic life of the residential properties, and the provisi(Trn foi. dilapidation. 'I'lie details of these judgenient5 aiid estimates are included iii the Televaiit notes. 1.2 INVESTMENTS Listed investments are a foi'm Of basic fiiiancial snstt'ument and are initially i'ecog]iised at tlieii. transactlOD value aiid subsequently measured at theii. fair valEie a5 at the balaiice sheet date using the closing quoted mark¢t pi'ice. All movements in valiie ai-ising fi'om investment change5 OT revaluatioii are shown iii the Statement of fijiaiicial Aclivilies. Reali5ed gains {or105ses) on inve5tnient as5et5 ale calculated as the differejice between disposal proceed5 and either theii. opening carryEng value, or tlieir purcliase value if acquii'ed subsequeiit to the fji'st day of Ilie fiiiaiicial year. Unrealised gains and 1055e5 are calciilated a5 tlie difference betweeii tlie fail. valiie aiid tlie carrying value at yeai. ejid. kealised and ui)realised investment gaÈn5 {or105se51 are coinbined in the stateineiit of fiiiancial activities and are credited (oi. debited) in the year in which they ai'ise. 1.3 TANCIBLE FIXED ASSETS Fi'eehold Land & Buildings Undei. the pi'evious GAAP, land and buildings weiE stated at valuatioji. Oji tj'ansitioii to fRS 102 ali election was made to Iise ihe valuatioi) at 2014 a5 the deejned cost aiid no depreciatioii on buildings was Iiiade as tlie amounl involved was deeined inimaterial. folloiviiig reappraisal in 2019-20 depre¢iation of buildings is Jiow made aiimually al 2/0 of deeined ¢ost. Fixtures, Fitting5 & Equipinent rixtuY¢s, fittings and equipment are depieciated at an annual rate of l O(ItD of cost. IT EqUIp￿ent IT equipinent is depreciated at an annual rate of 33.330/0 of c05t. 21 THE ROYAL SCOTTISH CORPORATION THE SCOTTISH HOSPITAL OF THE FOUNDATION OF KINC CHARLES 11 NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 MARCH 2022 1.4 Dri BTORS Dcbiors ate i'ccogi)ised at tlie settleimeiit ainoLlllt, less atiy provision foi. noii-recoverability. Prepayiments are valued at the ainoiint PTepaid. Trade and other debtors ale reco811ised at the settlement aniount due aftei. any tiade discouiit offei'ed. Prepaymen15 are valiied at thc amtsunt piepaid net of any trade discounts due. A specific provisiot) is niade foT debts foi. which recover&bility is in doLibt. 1.5CASH AT BANK AND IN HAND Cash at bank cash in Iiand includes cash aiid short term highly liquid investments. 1.6 CRF,DITORS AND PROVISIONS CIEditors and provisions are recogMi5ed when there Ts an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit WEII be required in settlement. and the amount of tlie settleniellt cai) be esiimared reliably. CTeditors provisions are normally recognised at their settlement amount after allowing for any trade discounts due. Ci'edi101s and pi'ovisions aTe I'ecogni%ed at the amouiit the C'hai'ity anticipates it ivill pay to settle the debt. They have beej) discounted to the pre8ent valLie of thc fiiture cash payment where %uch discounting is niatei'ial. 1.7 UNFUNDED PENSIONS Unfunded pensions are paid by tlie Charity to c¢rtgin formeT employees. The pensions ale to be pasd during their lifetime. The pension liability was calculated using the i'eturn on investment and to the assumed age 01-88 yeai's. Thi5 decision was taken in the view of probable life expectai)cy of th¢ i¢tii'¢d staff who are alrcady above the age of average lifE expectaiicy of women En the UK. 1.8 PROVISION FOR LIABILITIEIS Provision has been made for expected pi'opety costs at tlie end of the leases based on the lease terms, management's assessment of the propeity condition aiid ihe likely costs. 'I'h¢ estimation involves a level of ti'ustee judgement and will be reassessed at)i)ually. 1.9 FUND ACCOUNTING Fut)ds lield by the charity are either.. UniEs¢ricted flliids Irust¢¢s Endowment funds - the income from which can be used for the general PUTpts%e% of the Charity, in accordance with the chai'iiable objectives and at the discieiion of the tTUStees Resti'icted funds which can only be used for pailiciilar Tesh'icted purpose5 WÈthii) the objects of the charity, either when specified by the donoi. oi. when funds aTe i'aised for particular r¢stricted purposes whi¢h can be used in accoi'dance with tlie charitable objects at the discJEiion of the 1.10 INCOME RECOGNITION Income is recognised in the period in wliich the Charity ha5 entitleinent to the income, wher¢ the amount of income can be measured reliably. and it is probable that the income will bc Teceived. In accoixlanc¢ with Charities SORP FRS 102, volunteer time is not recognised. 1.11 LEIGACIES, CIFT AID & DONATIONS Legacies, covenants and donations are accounted for on a cash received ba5ES. Tlie Coronavirus Job Retention Scheme (CJRSI gi'ant has been recorded as a separate unrestrieted it)coiiie. The grant Wkls Tecogni5ed on an accruals basis. 1.12 INVEISTME4 NT INCOMC & INTEI RfiST Investment income is recognised once the dividend has been declared and notification has been received of the dividend due. Inleresi on fiinds held on deposit is included Ivhen it is receivable, and tlie amoLint can be measyied reliably by the Charity, this is normally upon notification fiY)m the bank of the iiiteiest payable or paEd. 1.13 RENTAL INCOMF. Income fi'om the I'enTal of functional properties is recognised when the income is receivable under tlie conhact for hiie or lease dociiment, when the amount can be measured reliably, and il is probable sucli income will b¢ r¢ceiv¢d. 22 THE ROYAL SCOTTISH CORPORATION THE SCOTTI.SH HOSPITAL OF THE fiOUNI)ATION OF KING CHARLES 11 NOTES TO THE FINANCIAL STATEMF.NTS (eontinued) FOR THE YEAR ENDfi D 31 MARCH 2022 1.14 EXPENDITURE Liabilities ale iecognised as expenditiiie as sooii as thei'e is a legal or consti'uciive obligaiion coii)mitliJib the Charity to niake a paymenl to a Iliii'd paity. it 15 pi'obable that a tiansfei. of economic benefiis will be i'equEred in settleiiient and tlie an)ount of the obligatioii Can be nieasured I'eliably. All expeiiditure is accounied for on an acci'uals basis. Expenditure coinpi'ises direct costs and support cos15. All expeiises. includink) support cosis. al'e allocaied oi. appoi'tioned tg the appliLable expei)dituie heading?s. Suppoi'l costs are allocaied in the same pi'oporiion as (lireci eosis are in¢urJtd. All exp¢ndituie is staled inclusive of iriecovei'able VA T. All eligible membei'5 of Staff al'e auto eiiTolled in a workplace pension ￿h¢Me. Employer contributions io ihe scheme are cliai'ged to the stateinent of Fillanc￿al Activities in tlie year in wliich ihey are payable io rhe scheme. In aildition. 5upplenientary pension payments are n)ade directly lo certain fornier en)ployees. 1.15 OPERATING LEASES Rentals payable undei. operating leases for equipinent are charged on a siraight-line basis over the terms of the leases. 1.16 EMPLOYEE BENEFITS Short term benefits Short term bei)efirs including holiday pay are iecognised as an expense in the period in whieh the service is received. Employet termination benefit5 Tem]iiiation bencfit5 ale accounted foT on an accruals basis and in lin¢ with FRS 102. 1.17 HERITAGE ASSETS No valiie is attributed to heritage assets on the basis that information oll cost or vgluatioii of the assets is not available and could not be obiained at rcasoi)able cost. The age, VllTiety and lack of compai'able maTket data M'ould make any attempt at valuation extitmtly ot)erous and costly Compared witli tlie benefIt d¢riv¢d by us¢1'5 of the ac¢ouiit. 23 THE ROYAL SCO￿lS￿l CORPORATIOIY THE scorrisH HOSPITAL ofTFlC fiOUNDATION OF KING CHARLF.S 11 NOTES TO THF. FINANCIAL STATCMCINTS (eontiiiiied) FOR THE YEAR ENDf4 D 31 MARCH 2022 DONATIONS AND LEGACIES 2022 2021 Legacies Doiiations Events 11,066 8,881 4,434 11.092 50.000 24,381 41,092 All income from donations and legacies in 2021 and 2022 was uiireslricied. INVESTMENT INCOME- UNREI STRICTED FUNDS 2022 2021 Dividei)d and interest on investnients Bank Deposii Intei'est 1,251,784 701 1,308,840 463 1,252,485 1,309,303 INCOME FROM CHARITABLE ACTIVITIES- UNRESTRICTED FUNDS Total 2022 Tolul 2021 Income from residential property 1280,455 1, 14J,808 1,280,455 1. 14J,808 MANACEMENT FEE- UNRESTRICTED FUNDS 2022 2021 Fees for services in respect of homeless people 70.548 76,352 70,548 70,352 24 THE ROYAL sco￿]SH CORPORATIOTrI THE scorrisH HOSPITAL OF THF FOUNDATION OF KINCJ CHARLC4S 11 NOTE4S TO THE FINANCIAL STATEMENTS (continued) FOR THf YEAR fiNDED 31 MARCH 2022 RAISING FUNDS 2022 2021 BJ'okei?ge con)Inissioii aiid investiiieiit Inaiiagemenl fees Less.. ac¢oiiiit¢d for as it]vestn)eiit transactions 347,657 (167,964) 297,426 (109, 164) 179,693 71,691 J88,262 94,955 Support costs (note 9) 251.J84 283,217 EXPENDITURE ON CHARITABLE ACTIVITIES 2022 2021 Welfare Staff costs Oilie¥ direKt ¢05ts Giants to individuals Support costs {note 9) 546,414 207,848 361,468 445.129 514.518 100.687 352,039 487.851 1,560,859 1,455.095 Residential Housing Starrc051s Oihei. dii'ect cost5 Sllpporl costs (note 9) 133,293 490,903 249,027 126,669 390,596 200,893 873,223 778, 158 GOVERNANCE COSTS Total 2022 Tolrtl 2021 AUd￿tors, remujiei'ation audit fees A￿d￿tOrs, remunei'ation- additiojial audit fee5 AuditOl'5' remunei'ation- other services Oilier direct cos15 Legal and professional fees- inteinal audit fees 17,400 J6,200 3,000 6,480 11,476 4,200 3,600 6,845 27,845 41,356 Govei'nance ¢v5ts have been allocated across investmeiit manageinent CQ5ts ai)d the cost of chaTltabl¢ activitie5 in proportion to direct expenditure. 25 Ix Co rno rvi fo rA* *r ¢x omm eh 10 ts) THE ROYAL SCOTTISH CORPORATION THE SCOTTISH HOSPITAL OF THE FOUNDATION OF KING CHARLES 11 NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31 MARCH 2022 10. STAFF COSTS 2022 2021 Wages and subsidiaries Social Secui'ity costs OiheT pension costs 821,519 83,186 90,955 794.299 81. 778 92.440 995,660 968,523 Employees 2022 2021 Tlie average number of employe¢s during the yeai. Cliai'itable Support 19 23 23 2022 2021 The aveTage numbei. of FTE dui'ing tlie year Charitable Suppoi't 17 J3 21 J8 There was one ¢inployee in the saloiy band £80,000 to £90,000 during the financial year to 31 March 2022 {2021.. one The key rnanagement of the Charity consists of tlie Cliief Executive together with the Ti'ustees. Total reniuneration for the Cliief Executiv¢, including social security and pension cosls was £107,853 (2021.. £110,741). 'I'l)e Trustees I'eceived no remuneralion in the currenl or prior year. No IEimbursement wa5 made to Ti'ustees in 2022 (2021.. £Nil). Donations of £2 were received fi'oin the Trustees in 2022 (2021.. £120}. 27 THC ROYAL SCOTTISH COIIPORATION THE SCOTTISH HOSPITAL OF THE FOUNDATION OF KING CHARLEIS II NOTES TO THE FINANCIAL STATEMENTS (coiitinued) FOR THE YEAR ENDEID 31 MARCH 2022 TANGIBLE FIXED ASSETS rreeljold LAii(l & BuildtJ)gs Fixtwrts & Fittings Offjce Equlpmertt IT EquipmÈ*t Totil COSTS l Api'il 2021 Additions Ti"aTrsfei' 10,104,746 511.812 273,366 85.002 30,034 4,654 (8,1961 10,731,594 278,020 18.7881 (592) At 31 M&rch 2022 10,104,154 785,178 85.002 26,492 11,000,826 DEPRECIATION I ApTiI 2021 Chai'ge foT ilie yeaT 206,597 143,284 188,862 50,349 85.002 1.930 8.27 482,391 201,904 At 31 March 2022 349,881 239,211 85,002 10.201 684,295 NET BOOK AMOUNT At 3 1 Mar¢'h 2022 9,754,273 545,967 16,291 10,316,531 At 31 MaTch 2021 9.898. 149 322.950 28. 104 JO,249,203 12 INVESTMEI NTS 2022 2021 ope11￿TI￿ value at l Api'il 2021 C05t ofadditions Les5 pi'o¢¢eds of disposals RealEsed (lo&s)Igain Unrealised gain 44,757,870 57,972,333 480,789 12, 769, 787 (223) (13,15)4,455) (402) 590,805 1,298,098 6,619,400 Market vglue ai 31 March 2022 46,536,132 44, 757,870 Fui)ds on deposit with investment tnana¥¢i' 453 660,170 Total vlllue a5 11131 Marcli 2022 46,536,585 45.418,040 Cost at 31 MarLh 2022 UnTealis¢d gain5 at 31 Myrch 2022 36,672,486 9,864,099 36.505. 103 8,912,957 Marliel value #t 31 Morch 2022 46,536,585 45,418.(P40 28 THI ROYAL SCOTTISH CORPORATION THE SCOTTISH HOSPITAL OF THE FOUNDATION OF KING CHARLES 11 NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED JI MARCH 2022 12. INVESTMENTS (Contlnued) The Investinent allocatioi) at Ilie year-end based on Inarket value is as followg.. 7.00/0 fixed inleresr, 69.5Q/o equiiie5, 5.60/0 pi'operty, 12.7 % alternative invesiments, 5.2ty/0 liqllid assets. IOOO/o of the porifolio 15 held ihrough a common investinent fund. All inveslinenls are in UK entities. 13. DEBTORS 2022 2021 Acci'ued incon)e and prepayment Trade debtors 88,971 63,391 44,011 91,Q24 152,362 J35,Q35 14, CREDITORS: Amounts falllng due iyithin vn¢ year 2022 2021 Trdde ci'editors Oiliei. ci'editoJ3 Deferred iiicome Acci'uals 72.375 28.208 78,752 31,541 15, J42 187,081 107.309 219.109 312,516 Other Creditors include £12,937 (2021 £13,573) related to llnfunded peiisioT)S. Deferred income comprises rental income receEved in advance, as follows.. 2022 2(121 Balance at l April Amount released to rental income Amoiint defei'ird in year 15,142 (15,142) 15. 788 (15, 788) 15, 142 Balance at 31 M#r¢h 11,217 15, J42 29 Tiif, ROYAL scofTISH CORPORATIO THE scorrisH HOSPITALOb 'fHE FOUNDATIUN OF KING CHARLES Il NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDCI D 31 MARCH 2022 15. CREDITORS: Amounts falling due afler mol'e than une yexr 2022 2021 Uiifunded pensions 54.180 49, 731) 54,180 49, 73Q 16. OPERATING LEASES Equipment Bulldings 2022 2022 2021 21121 Under l year 2-5years 5,718 7,304 2,244 124.544 311.361 124,544 443, J71 5,718 9,608 435,905 567. 715 17. NET DEBT RECONCILIATION At l April 2021 Cashfloivs Other non cash chgnges At31 Mareh 2022 Cash 1.296.090 (714,9671 583,123 NET DEBT RECONCILIATION 2021 C()Jnparativ¢ Al l Aprll 2020 Crtslifloivs Oili¢r iioii cusli liaiige5 Ai3J Murch 2021 Cash 1, 734,319 (436,229) 1,296,090 18. PROVISION FOR LIABILITIES AND CHARCES Provision for dilapidation A provisioi) of £75,450 has been made for the expected pi'operty dilapidation cost at the end of the lease based on the lease lei'ins and Inai)ageinent's assessment of the pi'operty conditioi). The estimation iiivolves a level of judgen)ent aiid will be reassessed aiinually. Balance at l April 2021 and at 31 Marcli 2022 75,450 30 THI ROYAL SCOTTISII CORPOIIATION THI SCOTTISH HOSPITAL OFTHE FOUNDATION OF KING CHARLES 11 NOTES TO THE FINANCIAL STATEMENTS (eontlnutd) FOR THE YEAR ENDED 31 MARCH 2022 19. MOVEMENT IN FUNDS l April 2021 Expenditure Investment gAins Fund trAnsf*i's 31 Marclt 2022 Endoweil Fiind The James Kinnear Fund 44.940,876 1188,538) 1,295.327 46,047,665 Restricted fund Heritage Fund 62,064 (3,192) 2,369 61,241 Unrestricted Incoine Funds Fuiictional Fixed Assets FTee Assets 10,249,203 1,280,455 (873,223) (339.904) 10,316,531 750,359 1,347,414 (1,623,705) 339,904 813,972 Total Unrestrieted Fiiiids JO,999,562 2,627,869 (2,496,928) 1,130,503 Total Funds 56,002.502 2,627,869 12,688,658) 1,297,696 57,239,409 COMPARATIVE 2021 l Aprll 2020 In¢ome Exptnditui'e Investment gsins Fund trAnsfers 31 Marth 2021 Endowed Fund The James Kinnear Fund 37,952,735 (212,413) 7,200,554 44,940,876 Restrielcd fund Hei'itage Fund 52,414 9,650 62,064 Uiircstrieted Ineome Funds Functional Fixed Assets Housing Maintenaiice Fulld Free Assets 9,017,672 I.J41,808 (778, 158) 867,881 10,249,203 232,348 (232.348) 1,339, 749 1,572,042 (1,525,899) (635,533) 750,359 Total Unrestrieted Wunds 10.589. 769 2, 713,850 (2,304,057) 10. 999,562 Total Funds 48,594, 918 2. 713,85U (2,5JO,470) 7,210,204 56,OQ2,502 THE IIOY AI. SCOTTISH CORPOIIATION THE SCOTTISH HOSPITAL ofTHE FOUNDATION OF KING CHARLES 11 NOTES TO THE FINANCIAL STATEMENTS (toiitinutd) FOR THF YF.AR F.NDED 31 MARCH 2022 20. ANALYSIS OF ASSFTS IIETWF.EI N FUNDS Unrestritted Fun(Is Resti'ieted Funds Endoived Funds 'rotAI 21)22 Tangible Assets Inveslmeiits 10,316,531 10,316,531 46,536,585 83,299 46,453,286 CLTr]Yent Assets les5 Creditors & Pi'ovisiojis 813,972 (22,058) (405,6211 386.293 11,130,503 61,241 46,047,665 57,239,409 Uiiresiriclefl Fiiitfls Rgsiilciéil FiiiiÉl& Eii¢loiv*¢l FiiFiil.$ Toirt1202J Tangible Assets Investments IQ.249,203 IQ,249,203 45,418,040 81.250 45,350.790 cU￿t￿t Aysets less Creditors & Pri>visions 750,359 (19.186) (395,9J4) 335,259 10, 999.562 02.Q64 44,940,876 56,oa2,502 THE JAMES KINNEAR FUND The James Kinneai. fund is an unexpendable capital (Permanent Eiidi)wmentl fund whose assets ale invested to pi'odLice incotne which eacli yeaF l5 recoi.ded in the Uni'e5ti'icted Incoine Fund and is freely available foT ihe cl)aritable activitie5 of the Coi'poraiion. HERITAGE FUND The Ileiitage Fund is a capital fund which arises from the Iiistoric sale of certain of the Corporation's paintings {aiiciently donated} upoii tnoving premises. Its ijicoine each year is recoi'ded in tl)e UniEStI'icted Income fund ai)d is fi'eely available foi. Ihe charitable activities of the Corporation. lis capilal assets al'e available (o the Trustees for the pui'ehase of repla¢ement commemorative artefacts foi. the Corporation's headquarte13 or such other corporate expenditure as the Trusiees may determine. UNRESTRICTII D INCOME FUNDS Tl)ese Funds represent accumulated income surpluses and con51St of functional fixed assets fund dnd fite assets. (a) Taiig?ible Fixed Assets Functional lixed assets coinprise resideniial properties and tl)e fixlures & fittings within providing accommodation for tl)e elderly and key workei's on lower incomes. The Ti'usiees liave determined that these asset5 shall be a capital fund bui tliai upon a disposal of the underlying piK)peTty, any proceeds llot sEmilarly reiiiyested shall become free assets available at tli¢ Ti'ustees, discretion. 32 THE ROY AI, SCOTTISH CORPORATION THE SCOTTISH HOSPITAL OF THE FOUNDATION OF KINC CHARLE4S 11 NOTES TO THE FINANCIAL STATEMENTS (eorttirtued) FOR THE YFAR fiNDf,D 31 MARCH 2Q22 20. ANALYSIS OF AssfiTS BETWEEN FUNDS (b) fire Assets Fl'ee assets are available at the Trustees, discietion in ihe conducl of tlie Cliatity's affairs. The Housing Maintenance Fund, a designated fund eai'iiiai'ked for Imaintenaiice of tlie Coi'poratioji's Iiousing stock. was n)erged willi tlie Free Assets iji 202 21. CAPITAL COMMITMEI NTS At 31 Marcli 2022, the Cliai'ity has a £70k eapital cojnmitment to convert an onsite office at a resideniial pi'opeily to a one bed flat (2021.. £Nil). 22. HERITAGE ASSETS Woi'ks of arl and cei'einotiial silverware are iiot capitalised iii tliese aecounls. They al-c considered to be liei'itas7e assets foi. the purposes ot tlie Chai'ities SORP Irks 1021. 'I'liey all Iiave very loi)g lives and are WDrth pre5ei.ving indelijiitely. No valiie is atti'ibuted to lierilage assets on tlie basis tliat infoi'matioi) on Lost or valudtioR of the a5set5 15 1)ot available and could not be obtained at IEasonable cost. Ther¢ has been no n?oveinent in the hei'ilage assets in the last 5 years. 23. RELATED PARTY TRANSACTIONS TheTe were no othei. relat¢d party ti'ansactions other than those noted undei. note 10. 33