**Charity Registration No. 277785**
## **FRIENDS OF LYDNEY HOSPITAL**
# **ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS**
**FOR THE YEAR ENDED 30 SEPTEMBER 2021**
## **FRIENDS OF LYDNEY HOSPITAL**
## **LEGAL AND ADMINISTRATIVE INFORMATION**
**Trustees** Mr J Williams Viscount Bledisloe Mrs M Thurston Mr A Midgley **Charity number** 277785 **Principal address** Watts of Lydney Group Limited Althorpe House High Street Lydney Glos GL15 5DD **Independent examiner** Griffiths Marshall Beaumont House 172 Southgate Street Gloucester GL1 2EZ
## **FRIENDS OF LYDNEY HOSPITAL**
## **CONTENTS**
||**Page**|
|---|---|
|Trustees report|1 - 2|
|Independent examiner's report|3|
|Statement of financial activities|4|
|Balance sheet|5|
|Notes to the financial statements|6 - 12|
## **FRIENDS OF LYDNEY HOSPITAL**
## **TRUSTEES REPORT** _**FOR THE YEAR ENDED 30 SEPTEMBER 2021**_
The Trustees present their report and financial statements for the year ended 30 September 2021.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's governing document, 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 2019)".
## **Objectives and activities**
The charity's objects are to support the activities around Lydney & District Hospital as stated in the Declaration of Trust dated 20th April 1979 by A M R Watts, M L Thomas, J R L Carson and A M R Rogers.
The Friends continue to assist Lydney Hospital with purchases of equipment and support for staff and patients. Besides supplying minor equipment, a new Hi Lo Bed and a Boston Waterfall Reclining Chair have been provided which have been greatly appreciated by both staff and patients.
Trustees and the management committee have maintained a close relationship with the Health Authorities to ensure that Urgent Care and Outpatient facilities continue to be provided locally. In particular the decision to concentrate minor injuries and illnesses for the whole Forest District at Lydney Hospital throughout the Covid Pandemic has been facilitated by the Friends.
Over many years we have had excellent provision and do not wish the ever-increasing population of the South Forest to be disadvantaged by centralisation of existing services.
Once the new Forest Community Hospital has been built and commissioned in Cinderford the aspiration is to replace any lost services in a new innovative 21st century facility for Lydney and the South of the Forest of Dean. The Trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake in supporting this rationalisation of health facilities.
## **Financial review**
The majority of the funds are managed by COIF Charity Investment Fund which whilst producing an income, has also held in value during the pandemic.
The Trustees now have substantial reserves and when the direction of the new health provision in Lydney and the South Forest is better known, the Trustees will consider how they can be used to supplement local services; in the meantime they will continue to support the provision of services at Lydney Hospital.
Investments are held for the purpose of generating a financial return which will be applied to present and
future charitable purposes.
The Trustees have assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.
## **Structure, governance and management**
The Trustees who served during the year and up to the date of signature of the financial statements were:
Mr J Williams Viscount Bledisloe Mrs M Thurston Mr A Midgley
- 1 -
## **FRIENDS OF LYDNEY HOSPITAL**
## **TRUSTEES REPORT (CONTINUED)** _**FOR THE YEAR ENDED 30 SEPTEMBER 2021**_
A new Trustee, Mr Anthony Midgley has been appointed to replace Mr B James who died during the year. He has also assumed the vacant role of Treasurer on the Management Committee.
Should vacancies occur in the Board of Trustees, new Trustees are appointed following interview and the usual recruitment checks.
In accordance with the Trust Deed, the management of the charity is delegated to the 'Committee of Friends of Lydney Hospital', which is elected in accordance with the Trust Deed.
The Trustees r eport was approved by the Board of Trustees.
**Mrs M Thurston** Trustees Dated: 12 May 2022
- 2 -
## **FRIENDS OF LYDNEY HOSPITAL**
## **INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF FRIENDS OF LYDNEY HOSPITAL**
I report to the Trustees on my examination of the financial statements of Friends of Lydney Hospital (the charity) for the year ended 30 September 2021.
## **Responsibilities and basis of report**
As the Trustees of the charity you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 (the 2011 Act).
I report in respect of my examination of the charity’s financial statements carried out under section 145 of the 2011 Act . 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**
Your attention is drawn to the fact that the charity has prepared financial statements in accordance with Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard 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 now been withdrawn.
I understand that this has been done in order for financial statements to provide a true and fair view in accordance with Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.
I have completed my examination. I confirm that no 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 2011 Act; or
- 2 the financial statements do not accord with those records; or
- 3 the financial statements 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 financial statements to be reached.
## **Ian Price (FCA)**
Griffiths Marshall Beaumont House 172 Southgate Street Gloucester GL1 2EZ
Dated: 12 May 2022
- 3 -
## **FRIENDS OF LYDNEY HOSPITAL**
## **STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT** _**FOR THE YEAR ENDED 30 SEPTEMBER 2021**_
|**Unrestricted**
**Restricted**
**funds**
**funds**
**2021**
**2021**
**Notes**
**£**
**£**
**Income from:**
Donations and legacies
**3**
103,392
-
Charitable activities
Other trading activities
**4**
-
-
Investments
**5**
47,389
10
**Total income**
150,781
10
**Expenditure on:**
Raising funds
Fundraising and
publicity
**6**
79
-
Charitable activities
Charitable Activities
**7**
15,105
-
**Total charitable expenditure**
15,105
-
**Total resources**
**expended**
15,184
-
Net gains/(losses) on
investments
**11**
211,890
-
**Net movement in funds**
347,487
10
Fund balances at 1
October 2020
1,763,811
2,833
**Fund balances at 30**
**September 2021**
2,111,298
2,843|**Total**Unrestricted
funds
**2021**
2020
**£**
**£**
103,392
11,580
-
616
47,399
45,337
150,791
57,533
79
700
15,105
16,320
15,105
16,320
15,184
17,020
211,890
(2,933)
347,497
37,580
1,766,644
1,726,231
2,114,141
1,763,811|Restricted
funds
2020
**£**
-
-
-
-
-
-
-
-
-
-
2,833
2,833|Total
2020
**£**
11,580
616
45,337
57,533
700
16,320
16,320
17,020
(2,933)
37,580
1,729,064
1,766,644|
|---|---|---|---|
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
- 4 -
## **FRIENDS OF LYDNEY HOSPITAL**
## **BALANCE SHEET**
## _**AS AT 30 SEPTEMBER 2021**_
|**Notes**
**Fixed assets**
Tangible assets
**12**
Investments
**13**
**Current assets**
Cash at bank and in hand
**Creditors: amounts falling due within**
**one year**
**15**
Net current assets
**Total assets less current liabilities**
**Income funds**
Restricted funds
**16**
Unrestricted funds|**2021**
**£**
**£**
21,085
1,746,223
1,767,308
346,833
-
346,833
2,114,141
2,843
2,111,298
2,114,141|**2020**
**£**
**£**
28,112
1,534,333
1,562,445
204,221
(22)
204,199
1,766,644
2,833
1,763,811
1,766,644|
|---|---|---|
The financial statements were approved by the Trustees on 12 May 2022
Mrs M Thurston **Trustee**
- 5 -
## **FRIENDS OF LYDNEY HOSPITAL**
## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 30 SEPTEMBER 2021**_
## **1 Accounting policies**
## **Charity information**
Friends of Lydney Hospital is an unincorporated charity, and was registered with the Charities Commission on 14 May 1979.
## **1.1 Accounting convention**
The financial statements have been prepared in accordance with the charity's governing document, 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 2019)". The charity is a Public Benefit Entity as defined by FRS 102.
The financial statements are prepared in sterling , which is the functional currency of the charity .
The financial statements have been prepared under the historical cost convention, modified to include investments at fair value. The principal accounting policies adopted are set out below.
## **1.2 Going concern**
At the time of approving the financial statements, the Trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
## **1.3 Charitable funds**
Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives.
Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
## **1.4 Income**
Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.
## **1.5 Expenditure**
Expenditure is included on an accruals basis, inclusive of irrecoverable VAT and is recognised when there is a legal or constructive obligation to pay.
- 6 -
## **FRIENDS OF LYDNEY HOSPITAL**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 30 SEPTEMBER 2021**_
## **1 Accounting policies**
**(Continued)**
## **1.6 Tangible fixed assets**
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Equipment 25% Reducing balance Fixtures and fittings 25% Reducing balance
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in net income/(expenditure) for the year.
## **1.7 Fixed asset investments**
Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year . Transaction costs are expensed as incurred.
## **1.8 Impairment of fixed assets**
At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any ) .
## **1.9 Cash and cash equivalents**
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
## _**Basic financial assets**_
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
## _**Basic financial liabilities**_
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future p aymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
## _**Derecognition of financial liabilities**_
Financial liabilities are derecognised when the charity ’s contractual obligations expire or are discharged or cancelled.
- 7 -
## **FRIENDS OF LYDNEY HOSPITAL**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 30 SEPTEMBER 2021**_
## **2 Critical accounting estimates and judgements**
In the application of the charity’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
## **3 Donations and legacies**
||**Unrestricted**|Unrestricted|
|---|---|---|
||**funds**|funds|
||**2021**|2020|
||**£**|£|
|Donations and gifts|103,392|11,580|
Donations and gifts income for the year ended 30 September 2021 includes income from legacies of £102,175
## **4 Other trading activities**
||**Total**|Unrestricted|
|---|---|---|
|||funds|
||**2021**|2020|
||**£**|£|
|Fundraising events|-|616|
## **5 Investments**
|**Unrestricted**
**Restricted**
**funds**
**funds**
**2021**
**2021**
**£**
**£**
Investment income
47,383
-
Interest receivable
6
10
47,389
10|**Total**Unrestricted
funds
**2021**
2020
**£**
£
47,383
45,175
16
162
47,399
45,337|
|---|---|
- 8 -
## **FRIENDS OF LYDNEY HOSPITAL**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 30 SEPTEMBER 2021**_
## **6 Raising funds**
|Fundraising and publicity
Staging fundraising events
Advertising
Fundraising and publicity
**Charitable activities**
Depreciation and impairment
Newspapers and sundries
Repairs and renewals
Donations of equipment
Share of governance costs (see note 8)
**Support costs**
**Support**
**costs**
**Governance**
**costs**
**£**
**£**
Legal and professional
-
1,500
-
1,500
Analysed between
Charitable activities
-
1,500|**Unrestricted**Unrestricted
**funds**
funds
**2021**
2020
**£**
£
79
435
-
265
79
700
79
700
**Charitable**
**Activities**
**Charitable**
**Activities**
**2021**
**2020**
**£**
**£**
7,028
9,465
-
2,843
741
3,412
5,836
-
13,605
15,720
1,500
600
15,105
16,320
**2021**
Support
costs
Governance
costs
2020
**£**
£
£
£
1,500
-
600
600
1,500
-
600
600
1,500
-
600
600|
|---|---|
## **7 Charitable activities**
## **8 Support costs**
- 9 -
## **FRIENDS OF LYDNEY HOSPITAL**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 30 SEPTEMBER 2021**_
## **9 Trustees**
None of the Trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.
## **10 Employees**
There were no employees during the year.
## **11 Net gains/(losses) on investments**
||||**Unrestricted**|Unrestricted|
|---|---|---|---|---|
||||**funds**|funds|
||||**2021**|2020|
||||**£**|£|
||Revaluation of investments||211,890|(2,933)|
|**12**|**Tangible fixed assets**||||
|||**Equipment**|**Fixtures and**|**Total**|
||||**fittings**||
|||**£**|**£**|**£**|
||**Cost**||||
||At 1 October 2020|22,675|24,393|47,068|
||At 30 September 2021|22,675|24,393|47,068|
||**Depreciation and impairment**||||
||At 1 October 2020|9,920|9,035|18,955|
||Depreciation charged in the year|3,189|3,839|7,028|
||At 30 September 2021|13,109|12,874|25,983|
||**Carrying amount**||||
||At 30 September 2021|9,566|11,519|21,085|
||At 30 September 2020|12,754|15,358|28,112|
- 10 -
## **FRIENDS OF LYDNEY HOSPITAL**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 30 SEPTEMBER 2021**_
## **13 Fixed asset investments**
|||||||**Listed**|
|---|---|---|---|---|---|---|
|||||||**investments**|
|||||||**£**|
||**Cost or valuation**||||||
||At 1 October 2020|||||1,534,333|
||Valuation changes|||||211,890|
||At 30 September 2021|||||1,746,223|
||**Carrying amount**||||||
||At 30 September 2021|||||1,746,223|
||At 30 September 2020|||||1,534,333|
|**14**|**Financial instruments**||||**2021**|**2020**|
||||||**£**|**£**|
||**Carrying amount of financial assets**||||||
||Instruments measured at fair value through profit or loss||||1,746,223|1,534,333|
|**15**|**Creditors: amounts falling due within**|**one year**|||||
||||||**2021**|**2020**|
||||||**£**|**£**|
||Trade creditors||||-|22|
|**16**|**Restricted funds**||||||
||The income funds of the charity include|restricted funds comprising the following unexpended balances of|||||
||donations and grants held on trust for specific purposes:||||||
||||**Movement**||**Movement**||
||||**in funds**||**in funds**||
|||**Balance at**|**Incoming**|
**Balance at**|
**Incoming**|
**Balance at**|
|||**1 October 2019**|**resources**|
**1 October 2020**|
**resources**|
**30 September**|
|||||||**2021**|
|||**£**|
**£**|
**£**|
**£**|
**£**|
||Pathfinder SET|2,833|
-|
2,833|
10|
2,843|
- 11 -
## **FRIENDS OF LYDNEY HOSPITAL**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 30 SEPTEMBER 2021**_
|**17**
**Analysis of net assets between funds**
**Unrestricted**
**funds**
**Restricted**
**funds**
**2021**
**2021**
**£**
**£**
Fund balances at 30
September 2021 are
represented by:
Tangible assets
21,085
-
Investments
1,746,223
-
Current assets/
(liabilities)
343,990
2,843
2,111,298
2,843|**Total**Unrestricted
funds
**2021**
2020
**£**
£
21,085
28,112
1,746,223
1,534,333
346,833
201,366
2,114,141
1,763,811|Restricted
funds
2020
£
-
-
2,833
2,833|Total
2020
£
28,112
1,534,333
204,199
1,766,644|
|---|---|---|---|
## **18 Related party transactions**
There were no disclosable related party transactions during the year (2020 - none) .
- 12 -