## Hawkhurst Community Hospital League of Friends TRUSTEES' REPORT AND FINANCIAL STATEMENTS 31 December 2022 Charity No. 252641 Hawkhurst Community Hospital League of Friends LEGAL AND ADMINISTRATIVE INFORMATION ## **President** The Rt. Hon G Clark MP ## **Trustees** The Trustees who served during the year and to the date of this report were: Dr R Blundell Mr H Cobbold Mrs T Cobbold Resigned 29 November 2022 Mr K Day Resigned 20 September 2022 Dr C R Dewing Chair (from April 2022) Mr T Fagg Appointed 7 February 2023 Miss V Fields Resigned 28 June 2022 Mr P Hoole Interim Chair (to April 2022), Resigned 20 March 2023 Mr J Hunt Mr J Newman Mr W B Owen Mrs J Pyne Appointed 21 June 2022 Mr H Schalburg Appointed 21 June 2022 Mr C Williamson **Charity Administrator/Secretary** Ms A Tanner ## **Principal Office** Hawkhurst Community Hospital High Street Hawkhurst Kent, TN18 4PU ## **Independent Examiner** Sam Farren FCA DChA Orchard House 42a Childsbridge Lane Kemsing Sevenoaks Kent, TN15 6QR **Bankers** Natwest Bank plc High Street Cranbrook Kent, TN17 3EJ Barclays Bank plc 9 High Street Colchester Essex, CO1 1DA 1 Hawkhurst Community Hospital League of Friends REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2022 The Trustees of the Hawkhurst Community Hospital League of Friends (the Charity) present their report and financial statements for the year ended 31 December 2022. The financial statements comply with the Charities Act 2011, and 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 2015). ## **Legal and Administrative Information** The Charity’s officers and trustees are: ## **President** The Rt. Hon G Clark MP ## **Trustees** The Trustees who served during the year and to the date of this report were: Dr R Blundell Mr H Cobbold Mrs T Cobbold Resigned 29 November 2022 Mr K Day Resigned 20 September 2022 Dr C R Dewing Chair (from April 2022) Mr T Fagg Appointed 7 February 2023 Miss V Fields Resigned 28 June 2022 Mr P Hoole Interim Chair (to April 2022), Resigned 20 March 2023 Mr J Hunt Mr J Newman Mr W B Owen Mrs J Pyne Appointed 21 June 2022 Mr H Schalburg Appointed 21 June 2022 Mr C Williamson ## **Constitution and Objects** The Charity is constituted under the rules and objects adopted on 15 May 1967, amended 30 April 1992, April 2005 and 23 April 2009. The Objects of the Charity are: 1. To mobilise, encourage, foster and maintain the interest and Support of the public in the patients and staff and to support the work of the hospital by voluntary service. 2. To raise, provide and receive funds for the purposes: - a. Either of supplementing, in such manner as the Charity thinks fit, the resources of the hospital service, or putting such funds, or any part thereof at the disposal of the Tunbridge Wells Health Authority or any successor Authority thereto to be applied at the discretion of such Authority in supplementing such resources. - b. Of supporting the patients and staff of the hospital, and; - c. Of supporting and relieving out-patients and former patients of the hospital and other invalids in the local community who are sick, convalescent, disabled, handicapped, infirm or in the need of financial assistance. - d. Using such funds as the Charity thinks fit for the purpose of promoting health in the wider community and relieving those in need due to other disadvantages related to ill health. ## **Administration and Structure** The Charity is governed by a board of trustees who meet quarterly. Day to day running of the Charity is delegated to the Charity Administrator who reports directly to the board of trustees. ## **Method of appointment and recruitment of trustees** The trustees regularly review the skills needed on the trustee board and will approach a suitable candidate known to them from the local community. 2 Hawkhurst Community Hospital League of Friends REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2022 ## **Review of the Year** Our charity, having been in existence for 50+ years, provides financial support for those in need within our community - without that support we believe that our society locally would be much poorer and fragile. ## _**Fundraising**_ Currently, our charity is almost entirely dependent on income from the Green Shop. Our staff and volunteers work tirelessly. ## _**WRAP**_ We currently support WRAP - a unique Day Centre for Dementia sufferers run by Sarah Caller and her colleagues. This requires dedication on their part. We hope to expand from 2 to 3 days a week in the coming year with this extra day being made available to those people who are in the early stages of cognitive decline, acting as a platform to support and stimulate mental health. ## _**The Hospital**_ The community hospital in Hawkhurst has been a constant focus for the League of Friends. Although the hospital is administered by the community health trust there are many things that it cannot afford to provide. The League of Friends is here to try and plug the holes. Our Chair meets with other Chairs of Leagues of Friends to share ideas and think of other things that might be useful in helping hospital patients in the future. ## _**Provision of financial support**_ We also give financial support for Food4 Families, a local community group providing food parcels for local residents who are having trouble feeding themselves. We continue to work to raise awareness of this ongoing crisis. ## **Review of Financial Activities and Affairs** In the financial year ending 31 December 2022 the Charity had income of £162,461 (2021: £100,150). Expenditure in the year was in the sum of £136,728 (2021: £80,762). Costs of raising funds were £55,786 (2021: £42,498) representing the cost of running the shop, within which were £37,503 (2021: £26,934) in wages and £7,162 (2021: £7,162) in depreciation. Charitable expenditure was in the sum of £80,942 (2021: £38,264), of which £57,366 (2021: £29,636) represented WRAP running costs and £4,328 (2021: £3,821) related to supplies and equipment provided to the hospital. Support costs amounted to £15,608 (2021: £4,203). ## **Reserves Policy** It is the policy of the charity to maintain its free reserves at a level that equates to approximately six months administration expenditure together with sufficient funds to cover the immediate charitable needs and a general reserve of approximately £15,000 to cover any unexpected calls on our funds. The funds were maintained at this level throughout the year. At 31 December 2022, unrestricted funds were £272,263 (2021: £248,030) of which £121,248 were free reserves (2021: £89,659) and restricted funds were £22,480 (2021: £20,980). ## **Risk Management** The Trustees have examined the major strategic, business and operational risks which the charity faces and confirm that systems have been established to enable regular reports to be produced so that necessary steps can be taken to lessen these risks. ## **Public Benefit** The Trustees have complied with the duty in section 4 of the 2011 Charities Act to have due regard to guidance published by the Charity Commission, including public benefit guidance. The Trustees have reviewed the Charity’s activities and confirm they meet the guidance given by the Charity Commission with regard to public benefit. 3 Hawkhurst Community Hospitsl League of Friends RF.PORT OF THE TRUSTEES FOR TIIF. YFAR ENDED 31 DECEMBER 2(722 Drc Hawkhurst Community Hospital League of Friends INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES OF HAWKHURST COMMUNITY HOSPITAL LEAGUE OF FRIENDS I report to the trustees on my examination of the accounts of the charity for the year ended 31 December 2022, which are set out on pages 6 to 14. ## **Responsibilities and basis of report** As the charity trustees, you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011(‘the Act’). I report in respect of my examination of the charity’s accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act. ## **Independent examiner’s statement** I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect: (1) accounting records were not kept in respect of the charity as required by section 130 of the Act; or - (2) the accounts do not accord with those records; or (3) the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair view’ which is not a matter considered as part of an independent examination. I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached. Sam Farren FCA DChA Sevenoaks - 31 October 2023 5 ## Hawkhurst Community Hospital League of Friends STATEMENT OF FINANCIAL ACTIVITIES for the year ended 31 December 2022 |Note
INCOME FROM:
Donations and legacies
Donations and grants
1
Legacies and Memorial Donations
Subscriptions
Charitable activities
2
Other trading activities
Fundraising
3
Investments
TOTAL INCOME
EXPENDITURE ON;
Raising funds
4
Charitable activities
5
TOTAL EXPENDITURE
NET INCOME
11
TRANSFERS BETWEEN FUNDS
NET MOVEMENT IN FUNDS
FUND
BALANCES
BROUGHT
FORWARD
At 1 January
17
FUND BALANCES CARRIED FORWARD
At 31 December
17|2022
Unrestricted
funds
Restricted
funds
Total
funds
£
£
£
5,569
-
5,569
-
-
-
2,296
-
2,296
45,874
-
45,874
107,174
1,500
108,674
48
-
48
160,961
1,500
162,461
55,786
-
55,786
80,942
-
80,942
136,728
-
136,728
24,233
1,500
25,733
-
-
-
24,233
1,500
25,733
248,030
20,980
269,010
272,263
22,480
294,743|_2021_
_Unrestricted_
_funds_
_Restricted_
_funds_
_Total_
_funds_
_£_
_£_
_£_
_18,500_
_-_
_18,500_
_950_
_-_
_950_
_2,534_
_-_
_2,534_
_17,395_
_-_
_17,395_
_60,769_
_-_
_60,769_
_2_
_-_
_2_| |---|---|---| |||_100,150_
_-_
_100,150_| |||_(42,498)_
_-_
_(42,498)_
_(38,264)_
_-_
_(38,264)_| |||_(80,762)_
_-_
_(80,762)_| |||_19,388_
_-_
_19,388_
_-_
_-_
_-_| |||_19,388_
_-_
_19,388_| |||_228,642_
_20,980_
_249,622_
_248,030_
_20,980_
_269,010_| All activities are classed as continuing. The Charity has had no recognised gains and losses during this year and last year other than the net expenditure for the financial year. 6 These unaudited financial statements were subject to an independent examination. See report on page 5. HawkhuTSi Community Hospital League of Friends BALANCE SHF 31 DeL¢nkn 2022 -•021 12 151.015 15V71 ij 14 6242 1.6¢1 15).995 115.ffTI Is 267) 14.4121 143.ra 110.639 291.743 269PIO 17 17 272263 24N.UI( 20.980 294.743 3$9￿10 l)r ('. DrwiTr¥ Hawkhurst Community Hospital League of Friends ACCOUNTING POLICIES ## **BASIS OF ACCOUNTING** ## a) Basis of preparation The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011. Hawkhurst Community 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 note(s). ## b) Preparation of the accounts on a going concern basis The Trustees are satisfied that the charity has sufficient funds to cover net expenditure for the ensuing year after approval of these financial statements. It is therefore the trustees’ view that there are no material uncertainties regarding Hawkhurst Community Hospital League of Friends’ ability to continue in business for the foreseeable future taking into account all available information, and have neither the intention nor the need to liquidate or curtail materially the scale of its operations, and have prepared the accounts on that assumption. ## **INCOME POLICY** Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the item(s) of income have been met, it is probable that the income will be received and the amount can be measured reliably. Legacies are recognised in the accounts when the amount and timing of receipt is probable to the satisfaction of the trustees. Income tax recoverable in respect of deeds of covenant is included in the same period as the donation. ## **INVESTMENT INCOME** Investment income is accounted for in the year in which the charity is entitled to receipt. ## **FUND ACCOUNTING** Unrestricted funds are funds which are available to use at the discretion of the trustees in furtherance of the general objectives of the charity and which has not been designated for any other purpose. Restricted funds are subjected to restrictions on their expenditure imposed by the donor or through the terms of an appeal. ## **EXPENDITURE POLICY** Expenditure is recognised on an accruals basis as a liability is incurred. Irrecoverable VAT is charged against the category of resources expended from which it was incurred. Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them. All costs are allocated between the expenditure categories of the Statement of Financial Activities on a basis designed to reflect the use of the resource. Costs relating to a particular activity are allocated directly whilst others are apportioned on an appropriate basis. ## **COST OF RAISING FUNDS** Cost of raising funds comprises those costs directly attributable to the Charity's fund raising activities. 8 These unaudited financial statements were subject to an independent examination. See report on page 5. Hawkhurst Community Hospital League of Friends ACCOUNTING POLICIES ## **CASH FLOW STATEMENT** The Charity has taken advantage of the exemption from preparing a cash flow statement in accordance with FRS 102 on the basis that it qualifies as a small entity. ## **TANGIBLE FIXED ASSETS** Assets costing £100 or more are capitalised as tangible fixed assets and are carried at cost, net of depreciation ## **DEPRECIATION** Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life. Property and improvements - 10% straight line basis Fixtures and fittings - 10% straight line basis Computer equipment - 25% straight line basis Depreciation is not provided on freehold land. ## **STOCK** Stock is valued at the lower of cost or realisable value. No value has been included for the items donated and held at the year end at the shop as the trustees consider it impractical to estimate the fair value of this stock. The value to the charity of the donated goods sold are recognised as income when sold. ## **DEBTORS** Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due. ## **CASH AT BANK AND IN HAND** Cash at bank and cash 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. ## **CREDITORS** Creditors are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors are normally recognised at their settlement amount after allowing for any trade discounts due. ## **FINANCIAL INSTRUMENTS** The charity 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. ## **OPERATING LEASE AGREEMENTS** Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged against profits on a straight line basis over the period of the lease. 9 These unaudited financial statements were subject to an independent examination. See report on page 5. Hawkhurst Community Hospital League of Friends NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2022 |1.|DONATIONS AND GRANTS||| |---|---|---|---| |||2022|2021| |||£|£| ||Donations|4,901|808| ||Grants|-|17,215| ||Gift Aid|668|477| |||------------|------------| |||5,569|18,500| |||======|======| |2.|CHARITABLE ACTIVITIES||| |||2022|2021| |||£|£| ||WRAP Income|45,874|17,395| |||------------|------------| |||45,874|17,395| |||======|======| |3.|FUNDRAISING INCOME||| |||2022|2021| |||£|£| ||Shop income|107,087|60,481| ||Other|1,587|288| |||------------|------------| |||108,674|60,769| |||======|======| |4.|FUNDRAISING EXPENDITURE||| |||2022|2021| |||£|£| ||Shop overheads (Note 7)|55,229|41,957| ||Purchase of goods (adjusted for stock)|557|541| |||------------|------------| |||55,786|42,498| |||======|======| |5.|CHARITABLE EXPENDITURE – supporting the community||| |||2022|2021| |||£|£| ||Hospital equipment, consultants,||| ||Physiotherapy dept. and outpatients|880|406| ||Gardening|582|724| ||Drinks machine|564|179| ||Newspapers for Day Hospital|-|(41)| ||Patient entertainment & hospital staff support|2,302|2,553| ||Donations|3,640|604| ||WRAP running costs (note 8)|57,366|29,636| ||Support costs (note 6)|15,608|4,203| |||-------------|-----------| |||80,942|38,264| |||======|======| 10 These unaudited financial statements were subject to an independent examination. See report on page 5. Hawkhurst Community Hospital League of Friends NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2022 ## 6. SUPPORT COSTS |6.|SUPPORT COSTS||| |---|---|---|---| |||2022|2021| |||£|£| ||Adverts, postage, stationery and telephone|410|434| ||Staff costs|11,070|1,162| ||Volunteer & staff mileage|975|-| ||Legal & professional fees|633|586| ||Accountancy fees|500|500| ||Bank charges and interest|270|233| ||Depreciation|100|17| ||Computer costs|900|521| ||Governance costs – independent examination fees|750|750| |||------------|------------| |||15,608|4,203| |||======|======| |7.|SHOP OVERHEADS||| |||2022|2021| |||£|£| ||Staff costs|37,503|26,934| ||Business rates|706|305| ||Water|268|163| ||Gas & electricity|2,259|1,855| ||Insurance|1,076|1,017| ||Card payment costs|1,014|1,300| ||Telephone and internet|477|417| ||Depreciation|7,162|7,162| ||Premises costs|4,764|2,804| |||------------|------------| |||55,229|41,957| |||======|=====| |8.|WRAP RUNNING COSTS||| |||2022|2021| |||£|£| ||Insurance|1,124|924| ||Other Costs|1,144|388| ||Depreciation|94|506| ||Legal and professional|1,543|1,732| ||Cleaning & supplies|2,101|1,007| ||Computer costs|1,072|351| ||Food Costs and Kitchen & Catering Supplies|4,055|1,695| ||Dementia Management|45,643|21,863| ||Training|390|1,020| ||Bad debts|200|150| |||------------|------------| |||57,366|29,636| |||======|======| 11 These unaudited financial statements were subject to an independent examination. See report on page 5. Hawkhurst Community Hospital League of Friends NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2022 ## 9. EMPLOYEE COST |EMPLOYEE COST||| |---|---|---| ||2022|2021| ||£|£| |Salaries and wages|47,551|28,706| |Social security costs|-|(1,071)| |Pension costs|1,022|461| ||------------|------------| ||48,573|28,096| ||======|======| |The average number of staff for the year was:||| ||2022|2021| ||No|No| |Shop|3|3| |Office|1|-| ||-----------|----------------| ||4|3| ||=====|========| No member of staff was paid more than £60,000 per annum during either year. ## 10. TRUSTEES’ REMUNERATION No trustee received any remuneration in either year. 4 trustees (2021: none) received reimbursement of expenses during the year relating to purchases made on the charity’s behalf totaling £1,663 (2021: £nil). ## 11. NET INCOME |This is stated after charging:|2022|2021| |---|---|---| ||£|£| |Depreciation|7,356|7,685| ||======|======| ## 12. FIXED ASSETS ||Freehold|||| |---|---|---|---|---| ||property and|Fixtures and|Computer|| ||improvements|fittings|equipment|Total| ||£|£|£|£| |Cost||||| |At 1 January & 31 December 2022|171,621|5,063|2,470|179,154| ||=================================|=================================|================================|=====================================| |Depreciation||||| |At 1 January 2022|13,727|4,969|2,087|20,783| |Charge for the year|7,162|94|100|7,356| ||----------------------------|----------------------------|----------------------------|--------------------------------| |At 31 December 2022|20,889|5,063|2,187|28,139| ||============================|============================|============================|================================| |Net book value||||| |At 31 December 2022|150,732|-|283|151,015| ||=================================|=================================|=================================|======================================| |At 31 December 2021|157,894|94|383|158,371| ||=================================|=================================|=================================|=====================================| 12 These unaudited financial statements were subject to an independent examination. See report on page 5. Hawkhurst Community Hospital League of Friends NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2022 ## 13. STOCKS AND WORK IN PROGRESS |13.|STOCKS AND WORK IN PROGRESS||| |---|---|---|---| |||2022|2021| |||£|£| ||Stock|242|-| |||------------|------------| |||242|-| |||======|======| |14.|DEBTORS||| |||2022|2021| |||£|£| ||Trade Debtors|1,164|854| ||Other Debtors|668|2,146| ||Prepayments and accrued income|4,410|641| |||------------|------------| |||6,242|3,641| |||======|=====| |15.|CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR||| |||2022|2021| |||£|£| ||Trade creditors|4,442|2,724| ||Other taxation and social security|1,553|458| ||Accruals|1,272|1,250| |||------------|------------| |||7,267|4,432| |||======|======| ## 16. COMMITMENTS UNDER OPERATING LEASES As at 31 December 2022, the charity had no future minimum lease payments under non-cancellable operating equipment leases. 13 These unaudited financial statements were subject to an independent examination. See report on page 5. Hawkhurst Community Hospital League of Friends NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2022 ## 17. ANALYSIS OF NET ASSETS BETWEEN FUNDS **----- Start of picture text -----**
||||| |---|---|---|---| |2022| |Restricted|Unrestricted|Total| |Funds|Funds|Funds| |£|£|£| |Tangible Fixed Assets|-|151,015|151,015| |Current assets|22,480|128,515|150,995| |Current liabilities|-|(7,267)|(7,267)| |------------------------------------------|------------------------------------------|---------------------------------------------| |22,480|272,263|294,743| |==================|==================|==================| |2021| |Restricted|Unrestricted|Total| |Funds|Funds|Funds| |£|£|£| |Tangible Fixed Assets|-|158,371|158,371| |Current assets|20,980|94,091|115,071| |Current liabilities|-|(4,432)|(4,432)| |------------------------------------------|------------------------------------------|---------------------------------------------| |20,980|248,030|269,010| |===============|================== ===============| **----- End of picture text -----**
Restricted funds relate to a legacy which was specified to be used for the benefit of the Physiotherapy Department of which £20,587 was remaining at 31 December 2022 (2021: £20,587) and £1,893 (2021: £393) in relation to funds raised during 2019 & 2020 for a sensory room. ## 18. TAX Hawkhurst Community Hospital League of Friends is a registered charity and as such its income and gains falling within Sections 471 to 489 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992 are exempt from corporation tax to the extent that they are applied to its charitable objectives. 14 These unaudited financial statements were subject to an independent examination. See report on page 5.