**Charity number: 502242**
## **WREXHAM HOSPITAL LEAGUE OF FRIENDS**
**UNAUDITED**
**TRUSTEES' REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020**
## **WREXHAM HOSPITAL LEAGUE OF FRIENDS**
## **CONTENTS**
||Page|
|---|---|
|**Reference and administrative details of the Charity, its Patrons and Trustees and**|1|
|**advisers**||
|**Chairman's statement**|2|
|**Trustees' report**|3 - 7|
|**Independent examiner's report**|8 - 9|
|**Statement of financial activities**|10|
|**Balance sheet**|11|
|**Statement of cash flows**|12|
|**Notes to the financial statements**|13 - 29|
**WREXHAM HOSPITAL LEAGUE OF FRIENDS**
## **REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS PATRONS AND TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 AUGUST 2020**
## **Patrons and Trustees**
Lord Thomas of Gresford OBE QC, President Sir Charles Gladstone, Bt, Hon Vice President Mr Lloyd Fitzhugh OBE, Hon Vice President Mr E R Hanmer, Hon Vice President Mrs J Barnes, Hon Vice President Mrs B M Bryden, BEM, Chairman Mrs M Ellis, Committee Mrs D Evans, Committee Mrs C T Griffiths, Committee Mr John Leece Jones, Committee (appointed 16 March 2020) Mr T Jones, Committee Mrs G Mostyn, Committee Mrs M Story, Committee Mrs S Warner MBE, Committee Mrs M White, Committee Mr T M Williams MBE, Vice Chairman
## **Charity registered number**
502242
## **Principal office**
16 Chanticleer Close, Wrexham, Clwyd, LL13 9EQ
## **Accountants**
WR Partners, Belmont House, Shrewsbury Business Park, Shrewsbury, Shropshire, SY2 6LG
## **Bankers**
HSBC PLC, Regent Street, Wrexham
## **Solicitors**
Tudor Williams, Gittins McDonald, 27-29 Grosvenor Road, Wrexham, LL11 1DH
## **Investment Fund Managers**
Quilter Cheviot, 5 St Paul's Square, Liverpool, L3 9 SJ
Tilney, 6 Chesterfield Gardens, Mayfair, London, W1J 5BQ
Page 1
## **WREXHAM HOSPITAL LEAGUE OF FRIENDS**
## **CHAIRMAN'S STATEMENT FOR THE YEAR ENDED 31 AUGUST 2020**
The chairman presents her statement for the year.
2020 was a terrible year for us as you all will know; located within the hospital our shops had to close in March with staff and volunteers having to stand down. This meant that our main source of funding was lost and of course as time went on a large amount of stock went out of date We were unable to claim insurance on the loss, as our insurers informed that we weren't covered for Covid 19.
We were unable to raise funds through our planned events which obviously have been shelved this of course will limit the amount of Equipment which we annually provide for use within the Wrexham Maelor Hospital.
I do hope that we will be able to start raising funds soon. but then who knows what the future holds .
I would like to thank Trevor for his continuation to pay any cheques received into the bank during this very unusual time. To Chris our shop Manager and everyone who gave their support thank you and I do hope that it is not too long before we are back in business and we can welcome back our staff and loyal volunteers.
Take care, keep safe.
Sincerely,
................................................ Margaret Bryden BEM Chairman
Date: 19.4.2021
Page 2
## **WREXHAM HOSPITAL LEAGUE OF FRIENDS**
## **TRUSTEES' REPORT FOR THE YEAR ENDED 31 AUGUST 2020**
The Trustees present their annual report together with the financial statements of the Charity for the year from 1 September 2019 to 31 August 2020.
## **Objectives and activities**
## **a. Policies and objectives**
The Wrexham Hospital League of Friends was established to:
- Raise funds for and provide physical amenities for the benefit of patients at the Wrexham Maelor Hospital; and
- Support the charitable work of the Hospital.
In setting objectives and planning for activities, the Trustees have given due consideration to general guidance published by the Charity Commission relating to public benefit, including the guidance 'Public benefit: running a charity (PB2)'.
## **b. Activities undertaken to achieve objectives**
We have referred to the guidance contained in the Charity Commmission's general guidance on public benefit when reviewing our aims and objectives and in planning our future activities. In particular, the trustees consider how planned activities will contribute to the aims and objectives they have set.
The activities of the League potentially benefit all users of the Wrexham Maelor Hospital, through the purchase of additional medical equipment for the hospital's use, through "Radio Maelor" or through the provision of onsite shop facilities. The League is committed to equal access by hospital users to the benefits that it provides.
The Committee are still concerned that, with the uncertainty over future plans of the Betsi Cadwaladr University Local Health Board (BCUHB), equipment purchased under our Objectives may be transferred to other units within the HB, even though these changes may be ongoing over a number of years. The Committee may well decide to add to reserves until the situation is clarified.
## **c. Grant-making policies**
The League invites applications for funding of specific projects within Wrexham Maelor Hospital. These are considered annually by the Equipment Sub-Committee, which makes recommendations to the Executive Committee of funding commitments most worthy of adoption.
Page 3
## **WREXHAM HOSPITAL LEAGUE OF FRIENDS**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020**
## **Achievements and performance**
## **a. Review of activities**
## **Results for the year 2019/20**
The shop income received by the League fell this year to £259,585 (2019: £479,109). Gross margin on shop sales ralso fell, to 22%.
Donations to the Wrexham Maelor Hospital totalled £260,083 (2019: £260,286). These donations have enabled the purchase of items including:
Opthamology £ 2,600 Neurophysiology £34,628 Renal Blood Pressure Machines £18,000
During the year incoming resources exceeded expenditure, before donations to the hospital, by £176,321 (2019: £236,942). When donations are taken into account the overall movement of funds before investment gains is a deficit of £83,762. The total funds held by the League at the Balance Sheet date of 31st August 2020 were £3,069,097 (2019: £3,188,770).
## **b. Investment policy and performance**
There are no restrictions on the League's power to invest.
On 24th August 2012 the League received a legacy from the estate of Mrs M Jenkins in the sum of £1,750,000; a further sum of £194,314 was received during the year to 31st August 2012. The committee decided to treat this as a separate designated fund, which is known as the Jenkins Fund. To this end, £1,850,000 was invested during August 2012 with two fund managers with the objective to produce an income stream together with some growth for distribution by the League in future years. This is in accordance with the Statement of Investment Policy, Objectives & Guidelines drawn up for the League under guidance of an Independent Financial Advisor.
The main aim of the Jenkins Fund is to provide as regular and secure an income stream as possible, together with some growth in the fund, in order to secure the future viability of the League, in accordance with its aims and objectives. The Committee consider that these objectives have been achieved by the investment managers during this financial year.
## **Financial review**
## **a. Going concern**
After making appropriate enquiries, the Trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the accounting policies.
Page 4
## **WREXHAM HOSPITAL LEAGUE OF FRIENDS**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020**
## **b. Reserves policy**
The Trustees have reviewed the League's needs for the reserves in line with the guidance issued by the Charity Commission and propose that at least 75% of the League's annual net income, excluding restricted funds, be donated each year for charitable purposes in accordance with accepted procedures, and that any remaining balances be applied either to unforeseen commitments within the same accounting year or added to balances for distribution in the following year in accordance with this policy. Notwithstanding the above policy statement the Trustees reserve the right to accumulate balances exceeding those stated where they formally agree to support a long term project/scheme to which reference will be made in the Annual Report.
Free reserves stand at £296,145 calculated as the unrestricted funds, less the designated funds and the tangible fixed assets.
Designated reserves comprise the Jenkins Fund as noted above. The value of this fund at 31 August 2020 was £2,733,876.
## **Structure, governance and management**
## **a. Constitution**
Wrexham Hospital League of Friends is a registered charity, number 502242, and is constituted under a Trust deed.
## **b. Methods of appointment or election of Trustees**
New Committee members are appointed upon the recommendation of existing members, and serve for a three year term. The League is administered by a large Committee (up to 30 in number) with a very wide range of skills.
All members of the Management Committee give their time voluntarily and receive no benefits from the charity. Any expenses reclaimed from the charity are set out in note 13 in the accounts.
## **c. Organisational structure and decision-making policies**
The League is governed by a Committee, which meets every month, through which all the business of the League is carried out. Within the Committee a Chairman, Treasurer and Secretary are appointed. In addition the Committee may delegate powers to specific sub-committees. All actions of the sub-committees will be reported to and confirmed by the Committee.
On 3rd November 2004 the activities of Wrexham's Hospital Broadcasting Service (formerly an independent charity) were merged with those of the League. "Radio Maelor" now operates as a restricted fund within the League, administered by its own sub-committee.
The League is dependent on the contribution and support of volunteers who work in the League shops within the Hospital, raise funds, and work within the Committee. It also employs a paid shop manager, who reports to the Shop's sub-committee and also the Finance & Investment sub-committee.
Page 5
## **WREXHAM HOSPITAL LEAGUE OF FRIENDS**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020**
## **Structure, governance and management (continued)**
## **d. Policies adopted for the induction and training of Trustees**
New members of the Committee are provided with copies of the Charity Commission's leaflet CC3, describing Responsibilities of Charity Trustees.
## **e. Related party relationships**
The League is a member of ATTEND, formerly the National Association of Hospital & Community Friends.
## **f. Financial risk management**
The Trustees have assessed the major risks to which the charity is exposed, in particular those related to the operations and finances of the charity, and are satisfied that systems and procedures are in place to mitigate our exposure to the major risks. Internal risks are minimised by the implementation of procedures for authorisation of all transactions and projects. These procedures are periodically reviewed to ensure that they still meet the needs of the charity.
The Charity like the country, has been hugely impacted by the Covid-19 pandemic, with the hospital shop currently closed in accordance with Government Regulations. The Trustees have assessed the potential impact on the future operations of the charity, taking into account its underlying financial resources and strength. They have taken proactive steps to manage the financial consequences to help ease the impact of the Coronavirus outbreak, including restricting the amount which will be paid out in grants until the position stabilises. The Trustees consider the charity to be well positioned to manage the current situation and secure operations into the future.
## **Plans for future periods**
BCUHB are no longer in special measures by the Welsh Assembly Government.
Our plans for the future have to be carefully scrutinised taking into account the ongoing Corvid 19 crisis The fact that our shops are still closed and no sign from the hospital management as to when we will be able to reopen, which is beyond our control.
It will not be possible to continue with our fundraising in our usual way due to the many restrictions, but we will look into how we can raise funds by other means.
## **Statement of Trustees' responsibilities**
The Trustees are responsible for preparing the Trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Page 6
## **WREXHAM HOSPITAL LEAGUE OF FRIENDS**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020**
## **Statement of Trustees' responsibilities (CONTINUED)**
The law applicable to charities in England & Wales requires the Trustees to prepare financial statements for each financial year from which give a true and fair view of the state of affairs of the Charity and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles of the Charities SORP (FRS 102);
- make judgments and accounting estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards (FRS 102) have been followed, subject to any material departures disclosed and explained in the financial statements;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Charity will continue in business.
The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Charity's transactions and disclose with reasonable accuracy at any time the financial position of the Charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the Trust deed. They are also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Approved by order of the members of the board of Trustees and signed on their behalf by:
................................................
**Mrs B M Bryden** Chairman Date: 19.4.2021
Page 7
## **WREXHAM HOSPITAL LEAGUE OF FRIENDS**
## **INDEPENDENT EXAMINER'S REPORT FOR THE YEAR ENDED 31 AUGUST 2020**
## **Independent Examiner's Report to the Trustees of Wrexham Hospital League of Friends ('the Charity')**
I report to the charity Trustees on my examination of the accounts of the Charity for the year ended 31 August 2020.
## **Responsibilities and Basis of Report**
As the Trustees of the Charity you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 ('the 2011 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 the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
Page 8
## **WREXHAM HOSPITAL LEAGUE OF FRIENDS**
## **INDEPENDENT EXAMINER'S REPORT (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2020**
## **Independent Examiner's Statement**
Since the Charity's gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of The Institute of Chartered Accountants in England & Wales, which is one of the listed bodies.
Your attention is drawn to the fact that the Charity has prepared the accounts 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) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has been withdrawn.
I understand that this has been done in order for the accounts to provide a true and fair view in accordance with the Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.
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 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.
This report is made solely to the Charity's Trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. My work has been undertaken so that I might state to the Charity's Trustees those matters I am required to state to them in an Independent examiner's report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the Charity and the Charity's Trustees as a body, for my work or for this report.
25.5.21 Signed: Dated: Jane Tweedie BSc, FCA, DChA
**WR Partners** Chartered Accountants Shrewsbury
Page 9
## **WREXHAM HOSPITAL LEAGUE OF FRIENDS**
## **STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 AUGUST 2020**
|**Note**
**Income from:**
Donations and legacies
4
Other trading activities
5
Investments
6
Other income
7
**Total income**
**Expenditure on:**
Raising funds
8,9
Charitable activities
10
**Total expenditure**
Net (losses)/gains on investments
**Net movement in funds**
**Reconciliation of funds:**
Total funds brought forward
Net movement in funds
**Total funds carried forward**|**Restricted**
**funds**
**2020**
**£**
**-**
**115**
**-**
**-**
**115**
**-**
**-**
**-**
**-**
**115**
**35,741**
**115**
**35,856**|**Unrestricted**
**funds**
**2020**
**£**
**119,698**
**259,470**
**47,833**
**3,650**
**430,651**
**208,037**
**306,491**
**514,528**
**(35,912)**
**(119,789)**
**3,153,030**
**(119,789)**
**3,033,241**|**Total**
**funds**
**2020**
**£**
**119,698**
**259,585**
**47,833**
**3,650**
**430,766**
**208,037**
**306,491**
**514,528**
**(35,912)**
**(119,674)**
**3,188,771**
**(119,674)**
**3,069,097**|_Total_
_funds_
_2019_
_£_
_31,228_
_479,109_
_57,831_
_5,748_|
|---|---|---|---|---|
|||||_573,916_|
|||||_336,974_
_297,271_|
|||||_634,245_|
|||||_212,117_|
|||||_151,788_|
|||||_3,036,983_
_151,788_|
|||||_3,188,771_|
The Statement of Financial Activities includes all gains and losses recognised in the year.
The notes on pages 13 to 29 form part of these financial statements.
Page 10
## **WREXHAM HOSPITAL LEAGUE OF FRIENDS**
## **BALANCE SHEET AS AT 31 AUGUST 2020**
|**Note**
**Fixed assets**
Tangible assets
14
Investments
15
**Current assets**
Stocks
16
Debtors
17
Cash at bank and in hand
Creditors: amounts falling due within one
year
18
**Net current assets**
**Total net assets**
**Charity funds**
Restricted funds
19
Unrestricted funds
19
**Total funds**|**6,131**
**596**
**431,032**
**437,759**
**(105,758)**|**2020**
**£**
**3,220**
**2,733,876**
**2,737,096**
**332,001**
**3,069,097**
**35,856**
**3,033,241**
**3,069,097**|_7,995_
_-_
_169,577_
_177,572_
_(44,173)_|_2019_
_£_
_3,836_
_3,051,536_|
|---|---|---|---|---|
|||||_3,055,372_
_133,399_|
||||||
|||||_3,188,771_|
|||||_35,741_
_3,153,030_|
||||||
|||||_3,188,771_|
The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:
................................................
**Mrs B M Bryden** Chairman Date: 19.4.2021
The notes on pages 13 to 29 form part of these financial statements.
Page 11
## **WREXHAM HOSPITAL LEAGUE OF FRIENDS**
## **STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 AUGUST 2020**
|**Cash flows from operating activities**
Net cash used in operating activities
**Cash flows from investing activities**
Purchase of tangible fixed assets
Proceeds from sale of investments
Sale of investments
Purchase of investments
**Net cash provided by/(used in) investing activities**
**Change in cash and cash equivalents in the year**
Cash and cash equivalents at the beginning of the year
**Cash and cash equivalents at the end of the year**|**2020**
**£**
**162,093**
**-**
**-**
**876,153**
**(776,791)**
**99,362**
**261,455**
**169,577**
**431,032**|_2019_
_£_
_(47,272)_
_(2,521)_
_(695,319)_
_666,725_
_-_
**(31,115)**
**(78,387)**
_247,964_
_169,577_|
|---|---|---|
The notes on pages 13 to 29 form part of these financial statements
Page 12
## **WREXHAM HOSPITAL LEAGUE OF FRIENDS**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020**
## **1. General information**
Wrexham Hospital League of Friends is a charity registered in England.
The address of the registered office is given in the charity information on page 1 of these financial statements.
The League was established to raise funds for, and provide physical anenities for the benefit of patients at Wrexham Maelor Hospital, and to support the charitable work of the Hospital.
## **2. Accounting policies**
## **2.1 Basis of preparation of financial statements**
The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.
The financial statements have been prepared to give a 'true and fair' view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a 'true and fair' view. This departure has involved following the Charities SORP (FRS 102) published in October 2019 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.
Wrexham 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.
## **2.2 Going concern**
The financial statements have been prepared on the going concern basis.
## **2.3 Income**
All income is recognised once the Charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.
The recognition of income from legacies is dependent on establishing entitlement, the probability of receipt and the ability to estimate with sufficient accuracy the amount receivable. Evidence of entitlement to a legacy exists when the Charity has sufficient evidence that a gift has been left to them (through knowledge of the existence of a valid will and the death of the benefactor) and the executor is satisfied that the property in question will not be required to satisfy claims in the estate. Receipt of a legacy must be recognised when it is probable that it will be received and the fair value of the amount receivable, which will generally be the expected cash amount to be distributed to the Charity, can be reliably measured.
Gifts in kind donated for distribution are included at valuation and recognised as income when they are distributed to the projects. Gifts donated for resale are included as income when they are sold.
Page 13
## **WREXHAM HOSPITAL LEAGUE OF FRIENDS**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020**
## **2. Accounting policies (continued)**
## **2.3 Income (continued)**
Where the donated good is a fixed asset, it is measured at fair value, unless it is impractical to measure this reliably, in which case the cost of the item to the donor should be used. The gain is recognised as income from donations and a corresponding amount is included in the appropriate fixed asset class and depreciated over the useful economic life in accordance with the Charity's accounting policies.
On receipt, donated professional services and facilities are recognised on the basis of the value of the gift to the Charity which is the amount it would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.
Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.
Other income is recognised in the period in which it is receivable and to the extent the goods have been provided or on completion of the service.
## **2.4 Expenditure**
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.
Expenditure on raising funds includes all expenditure incurred by the Charity to raise funds for its charitable purposes and includes costs of all fundraising activities events and non-charitable trading.
Expenditure on charitable activities is incurred on directly undertaking the activities which further the Charity's objectives, as well as any associated support costs.
Grants payable are charged in the year when the offer is made except in those cases where the offer is conditional, such grants being recognised as expenditure when the conditions attaching are fulfilled. Grants offered subject to conditions which have not been met at the year end are noted as a commitment, but not accrued as expenditure.
All expenditure is inclusive of irrecoverable VAT.
Page 14
## **WREXHAM HOSPITAL LEAGUE OF FRIENDS**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020**
## **2. Accounting policies (continued)**
## **2.5 Interest receivable**
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Charity; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.
## **2.6 Tangible fixed assets and depreciation**
Tangible fixed assets of a capital nature are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.
Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.
Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, on a reducing balance basis.
Depreciation is provided on the following bases:
|Property Improvements|- 10% Reducing Balance|
|---|---|
|Fixtures and fittings|- 15% Reducing Balance|
|Office equipment|- 25% Reducing Balance|
## **2.7 Investments**
Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the Balance sheet date, unless the value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and presented as ‘Gains/(Losses) on investments’ in the Statement of financial activities.
## **2.8 Stocks**
Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads.
## **2.9 Debtors**
Trade and other debtors are recognised at the settlement amount. Prepayments are valued at the amount prepaid.
## **2.10 Cash at bank and in hand**
Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
Page 15
## **WREXHAM HOSPITAL LEAGUE OF FRIENDS**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020**
## **2. Accounting policies (continued)**
## **2.11 Liabilities and provisions**
Liabilities are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.
Liabilities are recognised at the amount that the Charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.
Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Statement of financial activities as a finance cost.
## **2.12 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 with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.
## **2.13 Operating leases**
Rentals paid under operating leases are charged to the Statement of financial activities on a straight line basis over the lease term.
## **2.14 Fund accounting**
General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Charity and which have not been designated for other purposes.
Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Charity for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.
Investment income, gains and losses are allocated to the appropriate fund.
Page 16
## **WREXHAM HOSPITAL LEAGUE OF FRIENDS**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020**
## **3. Critical accounting estimates and areas of judgment**
Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Critical accounting estimates and assumptions:
The Charity makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results.
## **4. Income from donations and legacies**
|**Unrestricted**
**funds**
**2020**
**£**
Donations
16,439
Legacies
103,259
119,698
_Total 2019_
_31,228_|**Total**
**funds**
**2020**
**£**
**16,439**
**103,259**
**119,698**
_31,228_|_Total_
_funds_
_2019_
_£_
_23,708_
_7,520_|
|---|---|---|
|||_31,228_|
||||
## **5. Income from other trading activities**
|Shop income
_Total 2019_|**Restricted**
**funds**
**2020**
**Unrestricted**
**funds**
**2020**
**£**
**£**
115
259,470
_-_
_479,109_|**Total**
**funds**
**2020**
**£**
**259,585**
_479,109_|_Total_
_funds_
_2019_
_£_
_479,109_|
|---|---|---|---|
|||||
Page 17
## **WREXHAM HOSPITAL LEAGUE OF FRIENDS**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020**
## **6. Investment income**
|Income from quoted investments
Deposit income
_Total 2019_|**Restricted**
**funds**
**2020**
**Unrestricted**
**funds**
**2020**
**£**
**£**
-
41,059
-
6,774
-
47,833
_45_
_57,786_|**Total**
**funds**
**2020**
**£**
**41,059**
**6,774**
**47,833**
_57,831_|_Total_
_funds_
_2019_
_£_
_57,786_
_45_|
|---|---|---|---|
||||_57,831_|
|||||
## **7. Other incoming resources**
|**Unrestricted**
**funds**
**2020**
**£**
Presentation evening and quiz night
715
Helpers evening income
-
Tin/shop collection boxes
2,735
Raffle
200
100 club
-
3,650
_Total 2019_
_5,748_|**Total**
**funds**
**2020**
**£**
**715**
**-**
**2,735**
**200**
**-**
**3,650**
_5,748_|_Total_
_funds_
_2019_
_£_
_305_
_227_
_3,816_
_730_
_670_|
|---|---|---|
|||_5,748_|
||||
Page 18
## **WREXHAM HOSPITAL LEAGUE OF FRIENDS**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020**
## **8. Expenditure on raising funds**
## **Costs of raising voluntary income**
|**Unrestricted**
**funds**
**2020**
**£**
100 club prizes
255
Fundraising costs
90
345
_Total 2019_
_2,138_
**Other trading expenses**
**Unrestricted**
**funds**
**2020**
**£**
Other trading expenses
178,229
_Total 2019_
_305,643_
Included within other trading expenses above is as follows:
Costs of goods sold
Other shop expenses|**Total**
**funds**
**2020**
**£**
**255**
**90**
**345**
_2,138_
**Total**
**funds**
**2020**
**£**
**178,229**
_305,643_
**2020**
**£**
**166,999**
**6,430**
**173,429**|_Total_
_funds_
_2019_
_£_
_440_
_1,698_|
|---|---|---|
|||_2,138_|
|||_Total_
_funds_
_2019_
_£_
_305,643_|
|||_2019_
_£_
_301,257_
_5,127_|
|||_306,384_|
Page 19
## **WREXHAM HOSPITAL LEAGUE OF FRIENDS**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020**
## **9. Investment management costs**
|**Unrestricted**
**funds**
**2020**
**£**
Expenditure on investment management
29,463
_Total 2019_
_29,193_|**Total**
**funds**
**2020**
**£**
**29,463**
_29,193_|_Total_
_funds_
_2019_
_£_
_29,193_|
|---|---|---|
||||
## **10. Analysis of expenditure on charitable activities**
## **Summary by fund type**
|Grants payable
Radio service, running costs
Wages & salaries
Depreciation
Accountancy & independent examination fees
_Total 2019_|**Restricted**
**funds**
**2020**
**Unrestricted**
**funds**
**2020**
**£**
**£**
-
260,083
-
-
-
40,232
-
616
-
5,560
-
306,491
_189_
_297,082_|**Total**
**funds**
**2020**
**£**
**260,083**
**-**
**40,232**
**616**
**5,560**
**306,491**
_297,271_|_Total_
_funds_
_2019_
_£_
_260,286_
_189_
_32,240_
_741_
_3,815_|
|---|---|---|---|
||||_297,271_|
|||||
Page 20
## **WREXHAM HOSPITAL LEAGUE OF FRIENDS**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020**
## **11. Net income/(expenditure)**
This is stated after charging:
|Depreciation of tangible fixed assets:
- owned by the Charity
Independent Examination fees|**2020**
**£**
**616**
**2,300**
**2,916**|_2019_
_£_
_741_
_2,075_|
|---|---|---|
|||_2,816_|
## **12. Staff costs**
|Wages and salaries|**2020**
**£**
**40,232**
**40,232**|_2019_
_£_
_32,240_|
|---|---|---|
||||
|||_32,240_|
The average number of persons employed by the Charity during the year was as follows:
||**2020**|_2019_|
|---|---|---|
||**No.**|_No._|
|Employees|**3**|_2_|
No employee received remuneration amounting to more than £60,000 in either year.
## **13. Trustees' remuneration and expenses**
During the year, no Trustees received any remuneration or other benefits _(2019 - £NIL)_ .
During the year ended 31 August 2020, no Trustee expenses have been incurred _(2019 - £NIL)_ .
Page 21
## **WREXHAM HOSPITAL LEAGUE OF FRIENDS**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020**
## **14. Tangible fixed assets**
|**Cost or valuation**
At 1 September 2019
At 31 August 2020
**Depreciation**
At 1 September 2019
Charge for the year
At 31 August 2020
**Net book value**
At 31 August 2020
_At 31 August 2019_
**Fixed asset investments**
**Cost or valuation**
At 1 September 2019
Additions
Disposals
Revaluations
**At 31 August 2020**
**Net book value**
**At 31 August 2020**
_At 31 August 2019_|**Freehold**
**property**
**£**
**10,810**
**10,810**
**10,810**
**-**
**10,810**
**-**
_-_|**Fixtures and**
**fittings**
**£**
**10,915**
**10,915**
**7,497**
**512**
**8,009**
**2,906**
_3,418_
**Listed**
**investments**
**£**
**2,907,140**
**776,791**
**(965,376)**
**(35,912)**
**2,682,643**
**2,682,643**
_2,907,140_|**Office**
**equipment**
**£**
**6,383**
**6,383**
**5,965**
**104**
**6,069**
**314**
_418_
**Unlisted**
**investments**
**£**
**144,394**
**-**
**(93,161)**
**-**
**51,233**
**51,233**
_144,394_|**Total**
**£**
**28,108**
**28,108**
**24,272**
**616**
**24,888**
**3,220**
_3,836_
**Total**
**£**
**3,051,534**
**776,791**
**(1,058,537)**
**(35,912)**
**2,733,876**
**2,733,876**
_3,051,534_|
|---|---|---|---|---|
## **15. Fixed asset investments**
Page 22
## **WREXHAM HOSPITAL LEAGUE OF FRIENDS**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020**
## **15. Fixed asset investments (continued)**
|**Investments at market value comprise:**
Listed Investments
Investment cash & settlements pending
**Total market value**|**2020**
**£**
**2,682,643**
**51,233**
**2,733,876**|_2019_
_£_
_2,907,142_
_144,394_|
|---|---|---|
|||_3,051,536_|
The fixed asset investments are worldwide stocks held through UK intermediaries.
|**16.**
**Stocks**
Goods for resale
**17.**
**Debtors**
**Due within one year**
VAT
Prepayments
**18.**
**Creditors: Amounts falling due within one year**
Trade creditors
Other taxation and social security
Accruals and deferred income|**2020**
**£**
**6,131**
**2020**
**£**
**501**
**95**
**596**
**2020**
**£**
**103,028**
**80**
**2,650**
**105,758**|_2019_
_£_
_7,995_|
|---|---|---|
|||_2019_
_£_
_-_
_-_|
||||
|||_-_|
|||_2019_
_£_
_32,815_
_6,674_
_4,684_|
||||
|||_44,173_|
Page 23
## **WREXHAM HOSPITAL LEAGUE OF FRIENDS**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020**
## **19. Statement of funds**
## **Statement of funds - current year**
|**Balance at 1**
**September**
**2019**
**£**
**Unrestricted**
**funds**
**Designated**
**funds**
Designated Myra
Jenkins Legacy
**3,141,437**
**General funds**
General Funds -
all funds
**11,593**
**Total**
**Unrestricted**
**funds**
**3,153,030**
**Restricted**
**funds**
Selwyn Hughes
Legacy
**20,000**
Radio Fund
**13,716**
Small Restricted
Donations
**2,025**
**35,741**
**Total of funds**
**3,188,771**|**Income**
**£**
**Expenditure**
**£**
**41,059**
**(29,463)**
**389,592**
**(485,065)**
**430,651**
**(514,528)**
**-**
**-**
**115**
**-**
**-**
**-**
**115**
**-**
**430,766**
**(514,528)**|**Transfers**
**in/out**
**£**
**(383,245)**
**383,245**
**-**
**-**
**-**
**-**
**-**
**-**|**Gains/**
**(Losses)**
**£**
**(35,912)**
**-**
**(35,912)**
**-**
**-**
**-**
**-**
**(35,912)**|**Balance at**
**31 August**
**2020**
**£**
**2,733,876**|
|---|---|---|---|---|
|||||**299,365**|
|||||**3,033,241**|
|||||**20,000**
**13,831**
**2,025**|
|||||**35,856**|
|||||**3,069,097**|
Page 24
## **WREXHAM HOSPITAL LEAGUE OF FRIENDS**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020**
## **19. Statement of funds (continued)**
## **Statement of funds - prior year**
|**Unrestricted**
**funds**
**Designated**
**funds**
Designated Myra
Jenkins legacy
**General funds**
General Funds
**Total**
**Unrestricted**
**funds**
**Restricted**
**funds**
Selwyn Hughes
Legacy
Radio Fund
Small Restricted
Donations
**Total of funds**|_Balance at_
_1 September_
_2018_
_£_
_2,948,923_
_52,580_
3,001,503
_20,000_
_13,455_
_2,025_
35,480
_3,036,983_|_Income_
_£_
_57,831_
_516,040_
573,871
_-_
_45_
_-_
45
_573,916_|_Expenditure_
_£_
_(29,193)_
_(604,863)_
(634,056)
_-_
_(189)_
_-_
(189)
_(634,245)_|_Transfers_
_in/out_
_£_
_-_
_(405)_
_(405)_
_-_
_405_
_-_
_405_
_-_|_Gains/_
_(Losses)_
_£_
_163,876_
_48,241_
_212,117_
_-_
_-_
_-_
_-_
_212,117_|_Balance at_
_31 August_
_2019_
_£_
_3,141,437_|
|---|---|---|---|---|---|---|
|||||||_11,593_|
|||||||_3,153,030_|
|||||||_20,000_
_13,716_
_2,025_|
|||||||_35,741_|
|||||||_3,188,771_|
Page 25
## **WREXHAM HOSPITAL LEAGUE OF FRIENDS**
**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020**
## **20. Statement of funds - continued**
Funds from the Selwyn Hughes Legacy were received by the League in 1985. Interest from the invested sum was to be used annually and specifically in respect of medicine for the elderly.
On 3rd November 2004 the activities of Wrexham's Hospital Broadcasting Service (formerly an independent charity) were merged with those of the League. This now operates as a restricted fund, administered by its own sub-committee.
On 24th August 2012 the League received a legacy from the estate of Mrs M Jenkins in the sum of £1,750,000; a further sum of £194,314 was received during the year to 31st August 2012. The Committee
have decided to treat this as a separate designated fund, which is known as the Jenkins Fund. To this end, £1,850,000 was invested during August 2012 with two fund managers with the objective to produce an income stream together with some growth for distribution by the League in future years. A transfer has been made so that the balance in the fund agrees to the value of the investments.
With effect from the 2017 accounts, it has been decided to gather donations received that are for specific purposes into a separate restricted fund.
Page 26
## **WREXHAM HOSPITAL LEAGUE OF FRIENDS**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020**
## **21. Analysis of net assets between funds**
## **Analysis of net assets between funds - current period**
|Tangible fixed assets
Fixed asset investments
Current assets
Creditors due within one year
**Total**|**Restricted**
**funds**
**2020**
**Unrestricted**
**funds**
**2020**
**£**
**£**
-
3,220
-
2,733,876
35,856
401,903
-
(105,758)
35,856
3,033,241|**Total**
**funds**
**2020**
**£**
**3,220**
**2,733,876**
**437,759**
**(105,758)**
**3,069,097**|
|---|---|---|
## **Analysis of net assets between funds - prior period**
|Tangible fixed assets
Fixed asset investments
Current assets
Creditors due within one year
**Total**|_Restricted_
_funds_
_2019_
_£_
-
20,000
15,741
-
35,741|_Unrestricted_
_funds_
_2019_
_£_
3,836
3,031,536
161,831
(44,173)
3,153,030|_Total_
_funds_
_2019_
_£_
_3,836_
_3,051,536_
_177,572_
_(44,173)_
_3,188,771_|
|---|---|---|---|
Page 27
## **WREXHAM HOSPITAL LEAGUE OF FRIENDS**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020**
## **22. Reconciliation of net movement in funds to net cash flow from operating activities**
|Net income/expenditure for the period (as per Statement
Activities)
**Adjustments for:**
Depreciation charges
Decrease/(increase) in stocks
Decrease/(increase) in debtors
Increase in creditors
Revaluations
**Net cash provided by/(used in) operating activities**
**23.**
**Analysis of cash and cash equivalents**
Cash in hand
**Total cash and cash equivalents**
**24.**
**Analysis of changes in net debt**
Cash at bank and in hand|of Financial
**At 1**
**September**
**2019**
**£**
**169,577**
**169,577**|**2020**
**£**
**(119,674)**
**616**
**1,864**
**(596)**
**61,585**
**218,298**
**162,093**
**2020**
**£**
**431,032**
**431,032**
**Cash flows**
**£**
**261,455**
**261,455**|_2019_
_£_
_151,788_
_741_
_(632)_
_-_
_12,948_
_(212,117)_
_(47,272)_
_2019_
_£_
_169,577_
_169,577_
**At 31**
**August**
**2020**
**£**
**431,032**
**431,032**|
|---|---|---|---|
Page 28
## **WREXHAM HOSPITAL LEAGUE OF FRIENDS**
**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020**
## **25. Related party transactions**
The Charity has not entered into any related party transaction during the year, nor are there any outstanding balances owing between related parties and the Charity at 31 August 2020.
Page 29