Reglstered Company Number: 1141676 (England & Wales) REPORT OF THE TRUSTEES AND AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 FOR FAIRFIELD INDEPENDENT HOSPITAL (A COMPANY LIMITED BY GUARANTEE)
FAIRFIELD INDEPENDENT HOSPITAL {A COMPANY LIMITED BY GUARANTEE) CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 Page Report of the Trustees and Strategic Report Report of the Independent Auditors 12-15 Statement of Financlal Activities 16 Balance Sheet 17-18 Cash Flow Statement 19 Notes to the Cash Flow Statement 20 Notes to the Financial Statements 21-30
FAIRFIELD INDEPENDENT HOSPITAL (A COMPANY LIMITED BY GUARANTEE) REPORT OF THE TRUSTEES AND STRATEGIC REPORT FOR THE YEAR ENDED 31 DECEMBER 2024 The Trustees, who are also directors of the Company for the purposes of the Companies Act 2006, present their Annual Report together with the Financial Statements for the year ended 31st December 2024. Fairfield Independent Hospital {the Company) is a charitable Company limited by guarantee established under a Memorandum of Association and governed by its Articles of Association. The Company operates Fairfield Independent Hospital in order to meet its objectives. The Trustees ,confirm that the Annual Report and Financial Statements of the Company comply with the current statutory requirements, the requirements of the Company's governing document and the provisions of the Charities SO P (FRS102) REFERENCE AND ADMINISTRATIVE DETAILS Reglsterad Company number 1141676 (England and Wales) Reg18tered Charlty number 502791 Regl8tered and prlnclpal offlc• Fairfield Independent Hospital Crank St Helens Merseyside WA117RS Tru8tee8 Mr C Barratt Ms C Dodwell Mr C Bridge Mr RG Hammond Drcslnce Mr L Marlow Ms S Watson Mr A Appleton Mr MRPA Manning Chair of Trustees Deputy Chair and Chair of the Capital Developments Committee Chair of the Integrated Governance Committee Chair of the Workforce and Remuneration Committee Deceased Chair of the Flnance and Audit Committee Key Management Per80nnel: Ms C Nolan Chief Executive Officer Ms J Gallagher Director of Clinical Services and Quality Mr S Smith Director of Hospltal Services Mr I Campbell Director of Finance, IT and Performance Medlcal Advlsory Chairman Mr R Gudena Page 1
FAIRFIELD INDEPENDENT HOSPITAL (A COMPANY LIMITED BY GUARANTEE) REPORT OF THE TRUSTEES AND STRATEGIC REPORT FOR THE YEAR ENDED 31 DECEMBER 2024 REFERENCE AND ADMINISTRATIVE DETAILS continued Company Secretary Ms C Nolan Ms Nolan is also the Hospital's Registered Manager which is one element of the Hospital's Registration with the Care Quality Commission. Audltor8 Crowe U.K. LLP 3rd Floor St George's House 56 Peter Street Manchester M2 3NQ Sollcltor8 Tickle Hall Cross Carlton Chambers 25 Hardshaw Street St Helens WA10 1RP Bankers National Westminster Bank plc 5 Ormskirk Street St Helens Merseyside WA101DR Page 2
FAIRFIELD INDEPENDENT HOSPITAL (A COMPANY LIMITED BY GUARANTEE) REPORT OF THE TRUSTEES AND STRATEGIC REPORT FOR THE YEAR ENDED 31 DECEMBEB 2024 ObJectlve8 and Alms The charitable company's objectives are to promote, manage and maintsin a hospitsl to relieve sickness, injury, poor health and old age amongst the sick, convalescent, disabled, and infirm and to promote and preserve good physical and mental health. Our principle activities are to provide a broad range of clinical and health services to the publlc. We provide consulting rooms, imaging and scanning functions, treatment rooms, | operating facilities and the ancillary facilities necessary to fulfil this role. Our Framework for the Future is made up of: Our M1881on: To improve the health and qu81ity of life through the provision of a high quality and affordable service to the people of Merseyside and the North West of England. Our Vl8lon: To offer a workforce committed to providing a service of excellent patient care within a safe and appropriate environment. Our Valu88 underpin everythlng we do and describe the way we expect our staff to behave towards our patients, thelr families 8nd carers, colleagues and stsff. Our Hospital has identlfied five core values. These are.. Working together for patlents - Patients come first in everything we do at Fairfield. Everyone at Fairfield should act and collaborate in the interests of patients, putting patient interest before organisational interest and uniting in the patients, best interests. Working with each other, patients and carers and involving local communities, we can ensure we are providing services that meet local needs. Resp8Ct8nddlgnlty- Every Indlvldual who comes Into contact with Fairfield will be treated with respect and dignity. We will value and respect different needs, cultures, aspirations and priorities. We will foster a splrit of candour - admitting our mistakes when they happen and work within a culture of humility, openness and honesty where staff communicate clearly and openly with patients, relatives and carers. Commitment to quality C8re - We wlll aspire to the highest possible standards of excellence and professionalism in the provision of high quality, safe care. Quality will not be compromised in the pursuit of safe and compassionate care. It will be a collective endeavour at every level of the system. We will continue to actively pursue and welcome feedback from patients and staff to identify and drive forward areas of improvement, showing patients that we care about them as individuals. Compassion Patients, their carers and relatives will be treated at all times with sensitivity and kindness. Our services extend beyond providing clinical care and include alleviating pain and distress and making people feel valued and recognising that their concerns are important. We will also show compasslon and care to each other. Improving lives- This is our core function. We will continue to seek to help improve the health and wellbeing of our patients, our staff and our local communities, ensuring that we help people and their communities take responsibility for living healthier lives. Governlng Document Fairfield Independent Hospital (the Company) is a charitable company limited by guarantee established under a Memorandum of Association and governed by its Articles of Association. The charitable company has no share capital being a company limited by guarantee. The guarantee of each member is limited to £1. Page 3
FAIRFIELD INDEPENDENT HOSPITAL IA COMPANY LIMITED BY GUARANTEE) REPORT OF THE TRUSTEES AND STRATEGIC REPORT FOR THE YEAR ENDED 31 DECEMBER 2024 Trustees The Trustees may appoint replacement or additional directors at any time. However, the Members at the next Annual General Meeting must formally elect these directors. The Trustees who served during the year are set out on the Company Information page at the start of the Annual Report. The Trustees meet every three months or more often in periods of challenge and change - during2024the Board met more regularly. The Director Appointments Committee assists the Board in assessing its skills and identifying new Trustees. New Trustees spend time with the hospital management having the aims and objectives and the policles and procedures of the charitable company explained to them and are issued with an induction pack. A Medical Advisory Committee {MAC) and an Adverse Events Committee also form part of the governance framework. In total there are five Board committees and these are the Directors who serve on them; A~ Attended X= Non-attendancelapologles Director Appointments Integrated Governance Fin8nce and Audit Capital Workforce and Remuneratlon Medical Advisory Committees Mr C Barratt Mr C Brid Msc Dodwell MrRG Hammond Drcslnce Mr L Marlow MSS Watson MrA A leton Mrm Mannin Chair A 2020 Chair A Chair A 2022 A 2020 Chair A A 2020 Chair A A 2022 Board members may also meet outside the formal meetings to review and advise on partlcular areas of interest or opportunity. Organl8atlonal Structure The Chief Executive has responsibility for the leadership and implementing the Board's strategic plans for the organisation. The Chief Executive ensures that the organisation is financially stsble and that it meets its aims and objectives. The Chief Executive will ensure that the staff team is recruited and supported to provide the skills, expertise and competencies required in order to run and develop a successful organisation. The governance of the charitable company is the responsibility of the Board with support from the Medical Advisory Committee and the Executive. The Board provides independent oversight and stewardship for the range of services delivered. The Board monitors the discharge of its responsibilities via its regular meetings and the other Board sub committees that make up the framework for integrated governance. The framework of integrated governan spans all our services and means that we put our patients at the heart of everything we do. The Board are all volunteers and have experience of this or other hospitals as professionals or users of services. Procedures for identifying and assessing risks are in PTra and are reviewed at Board Meetings. The assessment of these reviews ensures that the charitable company has the ability to deliver its objectives and identifies where controls could be strengthened. Page 4
FAIRFIELD INDEPENDENT HOSPITAL (A COMPANY LIMITED BY GUARANTEE) REPORT OF THE TRUSTEES AND STRATEGIC REPORT FOR THE YEAR ENDED 31 DECEMBEB 2024 Our core business is health and optimising outcomes for patients and we have created an integrated governance framework for delivering excellence and the best possible clinical results. We work in partnership with our consultants to ensure optimum care for our patients. The Workforce and Remuneration Committee reviews the pay, reward and organisation structure for all the Hospital staff. The arrangements for setting pay and remuneration of key management personnel is similar to that applied to the whole staff team and the Committee uses benchmarks provided by the salary levels set in the National Health SeNice. The Workforce and Remuneration Committee makes recommendations to the Board on the setting of salaries for the whole stsff team including the key management personnel. The Trustees are responsible for preparing the annual report and financial stalements. Company law requires Trustees to prepare financial statements for each financlal yearwhich give a true and fair view ofthe charitable company's affairs. Trustees, responsibilities extend to ensuring that the assets of the organisation are safeguarded and that all reasonable steps have been taken to protect the organisation against fraud or other irregularities. Publlc Beneflt The Trustees have consldered the extent to which thelr activities and plans meet the objectives of the charitable company, contribute to the public benefit and the Charity Commission's published guidance on public benefit. As part of the processes of review, the Trustees have considered in detail the services currently provided and their accessibility and affordability to all members of the public. The Trustees are satisfied that the activities of the charitable company are consistent with the public benefit criteria. As a result of their review they identified the following as key areas by which the charitable company meets its objectives and serves the public benefit. Patients who are members of frlendly socletles and other mutual socleties are able to access servlces at Fairfield Independent Hospital by maklng modest weekly or monthly contributions, which are not related to their medical needs or their financlal means. Similarly patients funded by the NHS also beneflt from the same levels of care and treatment but do not pay directly for the treatment they receive. In addition, the Company participates in local heallh initiatives, the training of health workers and the planning of new health services. The Hospital has continued to have a dlrect contract with the NHS fèr the provision of medical, surglcal. diagnostic and therapeutic services. R18k Management The Company has a strong culture of risk awareness. All actlvitles, bdth new and continulng, are regularly subjected to a risk assessment which includes issues of clinical matters, health and safety, financial impact, operational effectiveness, continuity and reputation threats. There are clear policies and guidelines in place as part of the Company's risk management framework, We participate in our own local clinical audits and also participate in national reviews and there is a clear incident reporting mechanism and analysls of adverse events. Risk management training has been rolled out to all members of staff and forms part of the induction process. The Trustees acknowledge that they have a duty to identify and review the risks to which the Company is exposed and to ensure appropriate controls are in place to p',rovide reasonable assurance against fraud and error. IT risk management is a key area ft)r the organisation and in 2024 we continued to improve our IT environment, security systems and quality systems. We retained our ISO 27001 standard and invested in new equipment to ensure our systems are efficient, effective, secure and supported. We use a variety of consultants and companies to ensure oursystems are monitored, external back-ups are taken and risks are managed efficiently and effectively. The Hospital has a pandemic flu policy that has been adapted for the Covid19 pandemic and beyond. It provides guidance for the Hospital's staff to manage the organisation dufing the challenging times it has faced over 2024. The policy has been updated and improved as the Hospital has operated throughout the year. Page 5
FAIRFIELD INDEPENDENT HOSPITAL (A COMPANY LIMITED BY GUARANTEE) REPORT OF THE TRUSTEES AND STRATEGIC REPORT FOR THE YEAR ENDED 31 DECEMBER 2024 ACHIEVEMENTS AND PERFORMANCE Introduction This report has been prepared as the organisation emerged from the Covid19 pandemic which has provided the biggest challenge to the Charity in its history. l•lhile it is right to reflect on the achievements of 2024, the Trustees have to recognise that the reader of the report will be looking at those items that have affected the performance of delivering the charitsble services. Our financial situation continues to be stable. Our longer-term operating model and financial performance requires investment in sofvare that will help lower costs and provide improved planning, control and decision making opportunities. The Trustees have signed an asset purchase agreement to sell the trade and the assets of the charity. On completion of the sale the charity will continue as a grant giving body. The sale was completed at the end of March 2025. Our financlal statements for 2024 were prepared on the going concern basis. Many services have moved to an online delivery model and many of our patient consultations, where cllnlcally appropriate, are being held virtually. In order to support the local NHS and provide services for patients the Hospitsl is now an accredited provlder with NHS England to provide treatment and care for patients who have been waiting for some time for their treatment. The numbers of people waiting for treatment will be a key driver In the work-flow for the Hospital. Our Trustees and Directors feel very strongly that as a local charity it is our duty to support the NHS as best we can. The formal and informal links that the Hospital has developed with the NHS Trust In 2024 wlll improve Its role and importance. In addition, the internal developments at the Hospital, in response to the long waiting lists within the NHS, will help deliver new seniices for the NHS such as new specialty surgery in the years ahead. ov rn Vhllst the role of the Board encompasses overseelng the implementation of all the organisation's plans, it also has a major role in ensuring effective stewardship and ensuring high standards of corporate governance and personal behaviour. It is important that the Hospital has a highly effective and efficient Board that has the skills, competence and business acumen to drive the strategic agenda. As a registered charity and a company Ilmited by guarantee without share capital we have to balance the requirements of running a not-for-profit business with the need to achieve our charitsble alms and objectives.. to demonstrate public benefit,. adhere to th8 values of our charity; adopt best practices and act with integrity at all times. Our governance provides a framework for continuously improving the quality of our services and safeguarding our high standards of care. We develop and review our policies and procedures to enhance our governance environment and support our ISO 9001 accredited quality systems. Following the pandemic many of our ISO procedures have been re-written to further enhance our infection control precautions to the pandemic and the different ways of working, protecting patients and staff, many of our ISO procedures have been re-written to tske account of Covid19 precautions. The rlsk register continues to be populated and reported to the Board, identifying the most pressing risks and the actions that have been put in place to mitigate those risks. The hospital Board ensures there is formal structure around our risk management framework, KPI reporting dashboard, providing support for staff on all aspects of governance including the CQC inspection regime and the improvement of clinical systems. The Board has reviewed the Charity Govemance Code and considered the Charity's Complian to the Code. The Board has put in place systems and procedures to ensure it complies with the Care Quality Commission's corporate governance framework and that it is also meeting the seven principles which make up this Code. The Charity has also implemented procedures and policies which mean that it conforms to the fit and proper persons regulations for directors or equivalents. Page 6
FAIRFIELD INDEPENDENT HOSPITAL (A COMPANY LIMITED BY GUARANTEE) REPORT OF THE TRUSTEES AND STRATEGIC REPORT FOR THE YEAR ENDED 31 DECEMBEII 2024 The Integrated Governance Committee meets quarterly. The Committee looks at all aspects of governan across the or9anisation, promoting good risk management and ensuring effective governance, both clinical and non-clinical, across all seNices. The Committee provides assurance to the Board and other stakeholders that processes are in order and that the Hospital is compliant with its statutory requirements and able to ensure sound internal control arrangements. Leadershi nd Trainin The Executive Team, headed by the Chief Executive, continue to access continuing professional development and other opportunities relevant to their roles including membership of other charitable boards Wherever possible, staff have been accessing on-line training and development to ensure that their skills and competencies have been kept up to date. Investment in training will ,continue. Training forms part of the individual departments, suite of key performance indicators and is monitored to ensure compliance. Wherever possible we will utilise e-learning for staff and secure opportunities to visit other organlsations and do some Internal programmes such as 'walk in my shoes,. Training and education continues to be actively monitored to ensure that it is up to date, current and relevant. nd safe In 2024 we maintained our externally validated quality assurance standards. We were re-accredited for IS027001 and during 2024 we maintained our IS09001 standard. In common with many other UK organisations and charities, the current regLJlatory and legislative landscape in which we operate continues to be subject to increasin9 change, Failure to recognise, adapt to and comply with the above may cause additional costs, penalties or other sanctions and damage to our Hospitsls reputation. Our Quality Assurance Framework supports the plannlng, delivery, monltoring and continuous improvement of all the care and support we provide. As a charity, we always put quality, safety and patient care above financial performance and everything we do is evaluated against the following factors.. Safety- our aim Is to meet the highest possible standards and avoid harm. We expect all of staff to uphold professional standards and act with care compassion and integrity at all times. Effectiveness- providing evidence based health and wellbelng expertise and Services that lead to excellent outcomes. Experience- We want all of our patients to have a positive experience and our aim is to make that care as personalised as possible. We continually audit and benchmark our services and we are continually reviewing how we provide our services. We participate in the NHS Friends and Family Test and we also participate in the Private Health Information Network Friends and Family Test. Our scores on all these tests are high but we know that we can only maintain these scores by continual improvement, attention to detail,and investment in staff development, medical equipment, and the fabric of the Hospital. All our intemal patient questionnaire responses are reviewed by the Chief Executive on a dally basis whlch means our results are assessed quickly and any actions that are needed can be taken promptly. We are delighted that patients rate our services highly. As well as ourown internal questionnaire we do ad hoc audits where members of the team speak with patients, using our services, ask questions about how their experience has been, if we are getting it right ancl if there could be any improvements. We obtain the views of our consultants and discuss areas of good practice and concerns via the Medical Advisory Group (MAC). The MAC has a direct line of accountability to the Board and the Chairman of the Board of Directors meets regularly with the MAC Chair. The MAC Chqir is also in attendance at the Board. The MAC provides advice and guidance on how we take specific areas of the business forward and they also advise on development opportunities for the Hospital and implementing new initiatives based on best practice. We are extremely proud of our low infection rates. The fact that we are maintaining such good low rates is testament to how seriously all our staff take the issue of ensuring that our Hospital is free from infection. Page 7
FAIRFIELD INDEPENDENT HOSPITAL (A COMPANY LIMITED BY GUARANTEE) REPORT OF THE TRUSTEES AND STRATEGIC REPORT FOR THE YEAR ENDED 31 DECEMBER 2024 Refurbishments and New E The Hospital has continued to invest in all areas of the Hospital, which includes medical and non-medical equipment, patient facilities and information technology. Our capital programme has been reactive during 2024. ment Pro rarnme 2024 NHS Work Fairfield have registered to provide extra elective capacity in order to help reduce the NHS elective backlog. The hard working staff at Fairfield maintained the infection rate below 10/0. Staff worked collaboratively across all departments to provide support to colleagues in house to ensure we continued to provide a first class service to patients. Falrfield has a contract with local ICBS for direct referrals from GPS for their patlents, treatment FINANCIAL REVIEW AND STRATEGIC REPORT The charitable company made a loss of £723,356 (2023 a loss of £42,674). The Hospital's income increased to £16,559,529 (2023.. £15,757,696) and its Costs increased to £17,282,884 (2023.. £15,800,370). Ke Pollcle8 Re8erv88 poIIcy The movement in reserves in the year Is set out in Note 20 to the accounts. Total reserves at 31 December 2024 were £5,752,714 (2023 £6,476,070). Note 21 analyses how the Trustees have allocated past reserves to acquire and develop the Hospital. To the extent that past reserves have been used for this purpose, at the end of the year some £973,440 (2022 £1,787,963) is held as unallocated or free reserves which is equivalent to 1.31 months (2023 2.55 months) offixed costs. The charitable company's policy is to hold reserves sufficient to manage the risks involved in providing its medical seNices and to provide resources to invest in new activities. However, only £2,114,929 (2022 £801,191) of that sum is held as cash to cover the short-term requirements of the charitable company. The Trustees aim to maintain the cash and free reserves at levels which 8nable them to fund capital expenditure, meet liabilities when they fall due and provide an appropriate level of risk protection in the event of an unforeseen emergency. The charitable company reviews its reserves policy in the light of the budgets presented annually to the Board and planned future activities. Investment pollcy Following review, the investment policy of the charitable company is to deposit reserves with recognised banking organisations in an interest bearing account. This has taken place since April 2024. Strateglc Report The charitable company continues to see more patients year on year. Fairfield engages with patients to provide a re-assurance and a positive experience and outcome. Engagement with Health Watch St Helens provide5 feedback to Fairfield to improve service delivery wherever possible. Trustees continue to seek higher rates of patient survey feedback in order to help the hospital charity improve processes around risk management and incident reporting. In terms of our charity's approach to the use of the buildings and energy supplies the Board continues to improve the organisation's realistic Green Plan. The quality of its ServIS are assessed and evaluated every day by the patients who are treated in the Hospital, by the professional, clinical and administrative staff who provide part or all of those services and by Page 8
FAIRFIELD INDEPENDENT HOSPITAL (A COMPANY LIMITED BY GUARANTEE) REPORT OF THE TRUSTEES AND STRATEGIC REPORT FOR THE YEAR ENDED 31 DECEMBER 2024 the commissioners who order and pay for the services provided at the Hospital. In addition, it has corporate and specific regulators who monitor and inspect the services throughou the year. The charitable company's main strengths are its links to the local communities that it serves through its connections with General Practitioners, to the local health commissioners and its role with the major private health insurers as their local provider. The Hospital's ethos of continuous improvement ensures it can respond to changes in clinical standards or clinical practice quickly and effectively. The major risks the charitsble company faces are.. growth In alternative providers - as an example, we have seen local clinics opening up to provlde limited services in specific areas while these will not individually threaten the charitable company's existence, the cumulative effect of the services they offer may reduce the need for the Hospital's services., Increases in the cost of service provision and regulatory requirements - against a background of low increase in income the Company has to commit more of its Incoming resources to meeting these demands. The minimum wage cost increase has been felt in 2024. In other social and charitable sectors, for example the care Industry, the cost of higher standards can force a withdrawal of provision by the high quality providers., retention and recruitment of high calibre staff and consultants. The Hospital has had to rely on agency staff in some of its clinical areas as the NHS offers higher consultant fees to meet their backlog of treatments. Worry and uncertalnty from patients regarding waiting times and treatment delays Increases in energy costs, medical consumables and costs in general which all have to be funded Lack of capital in order to fund necessary investment The Board considers the future of the charitable company Is In need of investment as it continues to provide a high quality, valued and popular seplice to people from the local area and across the North West. The Board's strategic intention Is that the charitable company should.. Seek support trorn a new investor the Charity has exchanged contracts and signed an asset purchase agreement. The sale was completed at the end of March 2025 Invest in new techniques and treatments to provide the latest health treatments and support., extend our provislon Into early diagnosls and support for GP services., enhance our role in providlng a complete package of health care for the people of the North West so that we can meet most of their health needs at this location. Future Plans The proceeds of the sale was be used for the formal winding down of th'e operational activities and statutory requirements of the charity in terms of appropriate disbursements for such as VAT, run off insurance cover for NHS and private patients for the relevant time period of cover. lIst there is currently no formal strategy for the Charity, this will be drawn up and in the fullness of time, will include a mechanism to support local health and care charities. Fundralslng The charity had no fundraising activities requiring disclosure under S162A of the Charities Act 2011. Contlngent Llabllltles Page 9
FAIRFIELD INDEPENDENT HOSPITAL (A COMPANY LIMITED BY GUARANTEE) REPORT OF THE TRUSTEES AND STRATEGIC REPORT FOR THE YEAR ENDED 31 DECEMBER 2024 A provision was recognised at 31 December 2024 in accordance with the relevant accounting standards, as a result of the investigation from HMRC regarding its potential liability for VAT since an initial inquiry in July 2022. The initial inquiry was as a result of the hospitals inclusion in the response to the COVID 19 pandemic via its contract with NHS England. However, the initial inquiry has broadened in its scope to include other aspects of the hospitals business. Solicitors have been engaged and internal analysis has been Carried out and responses have been sent to HMRC, this work is ongoing. The investigatlon is multifaceted and is dependent on emerging case law. Management considers the best estimate at the time of signing the financial statements to be in the region of £1.2m to £1.6m with the final agreed figure to be paid in 2026. Events after the balance sheet dale Following on from the boards strategic intention to secure a new investor, the Charity has exchanged contracts and signed an asset purchase agreement with expected completion by the end of March 2025. The final value of the sale is still to be agreed at the date of the accounts. The sale will secure the investment in hospital activities that will allow the continued high level of care provided to patients. The intended charitable activities post sale will be limited to supporting local health health providers. care charities and STATEMENT OF TRUSTEES, RESPONSIBILITIES The trustees who are also the directors of Fairfield Independent Hospltal for the purposes of company law are responsible for preparing the financial statements in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice. Company law requires the trustees to prepare financial statements for each financlal year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing those financial statements, the trustees are required to., select suitable accountlng policles and then apply them conslstently., observe the methods and principles in the Charity Statement of Recornmended Practice (SORP)., make judgements and estimates that are reasonable and prudent., prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business. The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS So far as the trustees are aware, there is no relevant information (as defined by Section 418 of the Companies Act 2006) of which the charitable company's auditors are unaware, and each trustee has taken all the steps that they ought to have taken as a trustee in order to make them aware ofany audit information and to establish that the charitable company's auditors are aware of that information. Page 10
FAIRFIELD INDEPENDENT HOSPITAL (A COMPANY LIMITED BY GUARANTEE) REPORT OF THE TRUSTEES AND STRATEGIC REPORT FOR THE YEAR ENDED 31 DECEMBER 2024 AUDITORS The auditors will be proposed for appointment at the forthcoming Annual General Meeting. The Report of the Trustees and the Strategic Report were approved by he Board and signed on its behalf. C Barratt Trustee Data,. lo January 2026 Page11
FAIRFIELD INDEPENDENT HOSPITAL (A COMPANY LIMITED BY GUARANTEE) INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF FAIRFIELD INDEPENDENT HOSPITAL Oplnlon We have audited the financial statements of Fairfield Independent Hospital for the year ended 31 December 2023 which comprise the Ststement of Financial Activities, the Balance Sheet, the Cash Flow Statement and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion the financlal ststements.. give a true and falr view of the stste of the charitable company's affalrs as at 31 December 2023 and of its incoming resources and application of resources for the year then ended. have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice. and have been prepared in accordance with the requirements of the Companles Act 2006. Ba618 for oplnlon We conducted our audit in accordance with International Standards on Auditlng (UK) ISAS (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC'S Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Con¢lu81on8 relatlng to golng concorn In audlting the flnancial statements, we have concluded that the trustee's use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertaintles relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least e1ve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report. other Informatlon The trustees are responsible ft)r the other information contained within the annual report. The other information comprises the information included in the annual report, other than the financial statements and our auditotrs report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the f nancial ststements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. Page 12
FAIRFIELD INDEPENDENT HOSPITAL (A COMPANY LIMITED BY GUARANTEE) INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF FAIRFIELD INDEPENDENT HOSPITAL We have nothing to report in this regard. Oplnlon8 on other matters prescrlbed by th8 Compan188 Act 2006 In our opinion based on the work undertaken in the course of our audit.. the information given in the trustees, report, which includes the directors, report and the strateglc report prepared for the purposes of company law, for the financial year for which the financial ststernents are prepared is consistent with the financial statements., and the strategic report and the directors, report included within the trustees, report have been prepared in accordance with applicable legal requirements. Matter8 on whlch we aro requlred to report by exceptlon In light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material mlsstatements in the strategic report included within the trustees, report. We have nothing to report In respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, In our opinion.. adequate accounting records have not been kept., or the financial statements are not in agreement with the accounting records and returns; or certain dlsclosures of trustees, remuneration specified by law are not made; or we have not received all the information and explanations we require for our audlt. R88pon8lblllt108 of tru8t808 As explained more fully in the trustees, responslbilities statement set o'ut on page 10, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financlal statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial ststements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so. Page 13
FAIRFIELD INDEPENDENT HOSPITAL IA COMPANY LIMITED BY GUARANTEE) INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF FAIRFIELD INDEPENDENT HOSPITAL Audltor's responslbllltles for the audlt of the flnanclal statements Our objectives are to obtain reasonable assurance aboutwhether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditorfs report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAS (UK) will always detect a material misststement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Details of the extent to which the audit was considered capable of detecting irregularities, including fraud and non-compliance with laws and regulations are set out below. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at. This description forms part of our auditor's report. Extent to whlch the audlt wa8 con8ldered capable of detectlng Irregularltl88, Includlng Iraud Irregularities, including fraud, are instances of non-compliance with laws and regulations. We identified and assessed the risks of material misstatement of the financial statements from irregularities, whether due to fraud or error, and discussed these between our audit team members. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and appropriate to provide a basis for our opinion. We obtained an understanding of the legal and regulatory frameworks within which the charitable company operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006, the Charities Act 2011 together with the Charities SORP (FRS 102). We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financlal statement items. In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the charitable company's ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the charitable company for fraud. The laws and regulations we considered in this context for the UK operations were CQC Regulations. Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Trustees and other management and inspection of regulatory and legal correspondence, if any. We identified the greatest risk of material impact on the financlal statements from Irregularities, including fraud, to be within the timing of recognition of income, recording the impact of the CQC regulatory review and the override of controls by management. Our audit procedures to respond to these risks included enquiries of management and the Audit Committee about their own identification and assessment of the risks of irregularities, sample testing on the posting ofjournals, reviewing accounting estimates for biases, reviewing regulatory correspondence with the Charity Commission and reading minutes of meetings of those charged with governance. Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non- compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non- Complian with all laws and regulations. Page 14
FAIRFIELD INDEPENDENT HOSPITAL (A COMPANY LIMITED BY GUARANTEE) INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF FAIRFIELD INDEPENDENT HOSPITAL Use of our report This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditorfs report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed. Thls report has not been 81gned Vicky Szulist Senior Statutory Auditor For and on behalf of Crowe U.K. LLP Statutory Auditor 3rd Floor St George's House 56 Peter Street Manchester M2 3NQ Date Page 15
FAIRFIELD INDEPENDENT HOSPITAL (A COMPANY LIMITED BY GUARANTEE) STATEMENT OF FINANCIAL AcfiviTIES (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 DECEMBER 2024 2024 Unrestricted funds 2023 Unrestricted funds Notes INCOME Donations and legacles Investment income 100 17,182 496 Incomlng resources from charltabl8 actlvltl88 Medical servlces provided Other Income 16,485,940 73,588 15,669,012 88,684 Total Income 16,576,810 15,757,696 EXPENDITURE Charltable actlvltles Medical servlces provided 17,300,166 15,800,370 Total exp8ndlturo 17,300,166 15,800,370 NET (EXPENDITURE)IINCOME (723,356) (42.674) Total funds brought forward 6,476,070 6,518,744 TOTAL FUNDS CARRIED FORWARD 5,752,714 6,476,070 CONTINUING OPERATIONS All incoming resources and resources expended arise from continuing activities. The notes on pages 21 to 30 form part of these financial statements Page 16
FAIRFIELD INDEPENDENT HOSPITAL {A COMPANY LIMITED BY GUARANTEE) Registered Number: 1141676 BALANCE SHEET AT 31 DECEMBER 2024 2024 2023 , Unrestrlcted fund8 Unrestricted funds Notes FIXED ASSETS Intangible assets Tangible assets 13 1,234 6,177,077 14 5,771,003 Total Fixed Assets 5,771,003 6,178,311 CURRENT ASSETS Stocks 15 292,191 435,301 Debtors.. amounts falling due within one year 16 1,537,124 2,034,243 Cash at bank 2,114,929 801,192 3,944,244 3,270,736 CREDITORS Amounts falling due within one year 17 (3,241,397) {2,077,477) NET CURRENT ASSETS 702,847 1,193,259 TOTAL ASSETS LESS CURRENT LIABILITIES 6,473,852 7,371,570 CREDITORS Amounts falling due after more than one year 18 (721,137) (895,500) NET ASSETS 5,752,715 6,476,070 FUNDS Unrestricted funds 20 5,752,715 6,476,070 The financial statements were approved and authorised for issue by the Board of Trustees and were The notes on pages 21 to 30 form part of these financial statements Page 17
FAIRFIELD INDEPENDENT HOSPITAL (A COMPANY LIMITED BY GUARANTEE) Registered Number: 1141676 BALANCE SHEET AT 31 DECEMBER 2024 signed on its behalf by.. C 8arratt Trustee Date: anuary 2026 The notes on pages 21 to 30 form part of these financial statements Page18
FAIRFIELD INDEPENDENT HOSPITAL (A COMPANY LIMITED BY GUARANTEE) CASH FLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBE 2024 CASH FLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2024 2024 2023 Net cash (used Inl / Provided by operating act5vltles 1,509,564 416,772 Cash flow from investin8 actlvltles Purchase of fixed assets 121,4641 (89,7231 Net cash used In Investing activities {21,4641 189,7231 Cash flow from fSnancln8 aCtSvltles Repayment of CBILS loan Sales of bungalow leases 1300,000) 6,300 {174,363) Net from flnanclng activltles (174,3631 1293,700) Change in cash and cash equlvalents In the reportln8 perlod 1,313,736 33,349 Cash and cash equlvalents at the be8lnnln8 of the reportlng perlod 801,192 767.843 Cash and cash equSvalents at the end of the reportlng perlod 2,114,928 801.192 Page 19
FAIRFIELD INDEPENDENT HOSPITAL (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE CASH FLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2024 RECONCILIATION OF NET INCOME TO NET CASH INFLOW FROM OPERATING ACTIVITIES 2024 2023 Net (expendlture)Ilncome for reportlng perlod (a8 per the statement of flnanclal actlvltle8) Amortisation of intangible assets Depreciation charges Interest received (Increase)Idecrease in stocks Decreasel(increase) in debtors (Increase) In prepayments (Decrease)lincrease in credltors1 (723,356) (42,674) 6,492 426,190 428,771 143,111 155,506 341,613 1163 920 (121,736) 362,443 (430,335) 216 393 Net ea8h provlded by operatlng actlvltles 1509 565 416 772 ANALYSIS OF CASH AND CASH EQUIVALENTS 2024 2023 Cash 2 114928 801 192 ANALYSIS OF CHANGES IN NET DEBT At 1 January 2024 At31 Decembor 2024 Ca8h flow Net cash: Cash at bank 801,192 1,313,736 2,114,929 801192 1313 736 2 114929 Page 20
FAIRFIELD INDEPENDENT HOSPITAL (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 ACCOUNTING POLICIES The principal accounting policies adopted, judgments and key sciurces of estimation uncertainty in the preparation of the financial statements are as follows.. Company Informatlon The Charity is a company limited by guarantee (registered number 11416761 which is incorporated and domiciled in the UK. The address of the registered office is Crank, St. Helens, Merseyside, WA117RS. Ba818 of preparatlon 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 Republlc of Ireland (FRS 102) (effective 1 January 2019) (Charities SORP (FRS 102)), The Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. Fairfield Independent Hospital meets the definltion of a public benefit entlty under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless othernvise stated in the relevant accounting policy note. Golng concern On 5th June 2024, the Charlty entered into an agreement In principle with a third party for the sale of the trade and assets of the hospital. The agreement was subject to two conditions precedent, being the approval from the Home Office on the transfer of the medical dispensation licence and the arrangement of an insurance policy to cover operations performed by the Charity prior to the date of the change in ownership, before the change agreement became legally binding. These conditions were completed for the sale at March 2025 and the transfer of assets and trade occurred at the end of March 2025 In forming their assessment of the Charities ability to continue as a going concern for a period of at least 12 months from the date of signing the financial statements ('the going concern period.), the Trustees have considered the revised role that the charity will have in supporting local health and care charities. The trustees are satisfied that the Charlty has sufficient cash to continue to meet its li8bilities as they fall due throughout the going concern and as a result that it is appropriate to continue to prepare the financial statements on a going concern basis. Incomlng re80urce8 Voluntary income - Including donations, gifts, legacies and grants - provide core funding or are of general nature are recognised where there is entitlement, probability of receipt and the amount can be measured with sufficient rellability. Such income is only deferred when: The donor specifies that the grant or donation must only be used in future accounting periods., or The donor has imposed conditions which must be met before the Company has unconditional entitlement. b) Donations received are accounted for when the resources are, receivable or when the Company's entitlement is legally enforceable. No gifts in kind are received. Income from medical services is recognised as earned when the related goods and services are provided. Income from charitable activities includes income received under contract or where entitlement to grant funding is subject to specific performance conditions is recognised as earned (as the related goods or services are provided). Investment income is recognised on a receivable basis. Resources expended 21
FAIRFIELD INDEPENDENT HOSPITAL (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 Expenditure is accounted for on an accruals basis. Contractual arrangements and performance related grants are recognised as goods or seNices as supplied. Costs of generating funds are those costs incurred in attracting voluntary income, and those incurred in charitable activities. Charitable activities include expenditure with the operation of the Charity. Governance costs include those incurred in the governance of the Charity and its assets and are primarily associated with constitutional and statutory arrangements. Intanglble Assets Intsngible fixed assets are non-financial fixed assets that do not have physlcal Substan but are identifiable and are controlled by the charity through custody or legal rights. Intangible fixed assets for the Charity comprise acquisition of software licenses and external software development time in enhancing patient services. Although such assets lack physical substance, they provide a continuing economic benefit to the Charity. The Charity only includes payments to third parties in this asset category and does not include staff costs even though their contribution to the implementation of these systems may be significant. Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life, Software 250/0 Stralght line Tanglble flx8d a888ts Tangible assets are stated at cost (or deemed cost for land and buildings held at valuatlon at the date of transition to FRS 102) less accumulated depreciation. Depreclation Is provided at the following annual rates In order to write off each asset over its estimated useful life. Freehold propety Fixtures, fittings & equipment Indlvldual assets costing £1,000 or more are capitalised at cost. 20/0 on costlvaluatlon 100/0 to 250/0 Straight line Stocks Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving Items. Taxatlon As a registered Charity the Company is not liable to corporation tax on its Income. Provlslon8 for Ilabllltles Provisions are recognised when the hospital has a present obligations (legal or constructive) as a results of a past events, it is probably that the hospital will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. The provision represents the ongoing VAT investigation from July 2022. 22
FAIRFIELD INDEPENDENT HOSPITAL (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 Fund accountlng Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees. All the Charity's funds are unrestricted income funds. No separate statement of changes in reserves has been included in these financial statements as there is no movement on reserves except for the surplus for the year. Pen81on costs and other po8t-retlrement beneflt8 The Charity operates a defined contribution scheme approved by the Pension Schemes Office of the Inland Revenue. The Charity also runs a stakeholder pension scheme for the benefit of the employees. Contributions are charged to salaries and wages in the Statement of Financial Activities as they become payable. The assets of the schemes are held separately from the assets of the company. Irrecoverable VAT All resources expended are classified under activity headings that aggregate all costs related to the category. Irrecoverable VAT Is charged against the category of resources for which it was incurred. Flnanclal Instruments Fairfield Hospital 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 amortised cost. JUDGEMENTS IN APPLYING ACCOUNTING POLICIES ANO KEY SOURCES OF ESTIMATION UNCERTAINTY In the application of the Charity's accounting policies, which are described in note 1, Trustees are requlred to make judgements, estimates, assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actua5 results may differ from these estimates. The estlmates and underlying assumptions are revlewed on an on-going basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects the current and future periods. The key sources of estimation uncertalnty that have a significant effect on the amounts recognlsed in the financial statements are described in the accounting policies and are summarised below. The Charity holds provisions for bad debt, out of date stock and pension contribution shorttall. The provisions have been created by making charges against income. The likelihood and quantum of any potential liability arising from the VAT inspection. DONATIONS AND LEGACIES 2024 2023 Legacies and Donations 100 496 23
FAIRFIELD INDEPENDENT HOSPITAL (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 INVESTMENT INCOME 2024 2023 INCOMING RESOURCES FROM CHARITABLE ACTIVITIES 2024 2023 Medical services provided 16,485,940 15,669,012 CHARITABLE ACTIVITIES COSTS Support Costs Dlract Medlcal co8t8 18e8 note 12) Governance Cost8 (See note 8) Total Total (888 note 7) 2024 2023 Medical services 12,905,611 4,329,254 65,301 17,300,166 15,800,370 Provided DIRECT COSTS OF CHARITABLE ACTIVITIES 2024 2023 staff costs Direct medical costs Insurance Patient services 3,336,345 8,875,316 233,313 164,064 3,205,391 7,387,600 233,313 163,468 Medical Equipment Maintenance and Repair 296,573 269,573 12,905,611 11,286,345 GOVERNANCE COSTS 2024 2023 Auditors, remuneration 65,301 44,597 24
FAIRFIELD INDEPENDENT HOSPITAL (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 NET {EXPENDITURE)IINCOME Net (expenditure)lincome is stated after chargingl(crediting); 2024 2023 Amortisation of intangible assets Depreciation of owned assets 6,492 426 190 42 771 10. TRUSTEES, REMUNERATION AND BENEFITS There were no trustees, remuneration or other benefits for the year ended 31 December 2024 nor for the year ended 31 December 2023. Payments of £0 (2023.. £0) were made in the year ended 31 December 2024 for trustee travel expenses. 11. STAFF COSTS AND THE COST OF KEY MANAGEMENT PERSONNEL 2024 2023 Salarles and wages.. Nursing and other clinlcal staff Housekeepin9, catering and malntenance Management and administration 3,336,345 640,357 1,508,934 5,485,636 3,205,390 621,350 1,539,861 5,366,601 Wage and salaries Social security costs Pension costs 4,975,571 391,863 118,202 5,485,636 4,626,084 360,581 379,936 5,366,601 The following number of employees received remuneration falling within the following ranges.. Bands 2024 2023 Number Number £60,001 to £70,000 £70,001 to £80,000 £80,001 to £90,000 £90,001 to £lOO,000 £IOO,001 to £llO,000 £iio,ooi to £120,000 £120,001 to £130,000 £130,001 to £140,000 25
FAIRFIELD INDEPENDENT HOSPITAL (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 11. STAFF COSTS AND THE COST OF KEY MANAGEMENT PERSONNEL- contlnued One ofthe higher paid employees (2023.. 1) accrued benefits under a defined contributs'on scheme. The amounts paid to defined contribution schemes on behalf of this employee were £5,744 (2023: £5,905). The key management personnel of the charity comprise the Hospitsl Executive and are listed in the Report of the Trustees and Strategic Report. The total employee benefits of the key management personnel of the Company were £354,862 (2023.. £413,447). Average number employed (including temporary staffl.. 2024 92 99 191 2023 98 92 190 Nurslng and other clinical Management, clerical and domestic 12. SUPPORT COSTS Support costs incurred in the year In relatlon to charitable activities were as follows.. 2024 2023 Management Finance 2,918,135 243,766 3,009,832 257,532 Information Technology 296,005 331,897 Property 871,348 4,329,254 870,167 4,469,428 13. INTANGIBLE FIXED ASSETS Total Software COST At 1 January 2024 Additions At 31 December 2024 118,503 118503 DEPRECIATION At 1 January 2024 Charge for year At 31 December 2024 117,269 118,503 NET BOOK VALUE At 31 December 2024 At 31 December 2023 1,234 26
FAIRFIELD INDEPENDENT HOSPITAL (A COMPANY LIMITED BY GUARA TEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 14. TANGIBLE FIXED ASSETS Medlcal Equlpment, Flxture8, Flttlng8, Computer Equlpment Freehold land Freehold property Total COST At 1 January 2024 Additions Impairment 1,590,167 4,159,833 3,468,337 21,464 9,218,337 21,464 At 31 December 2024 1590,167 4 159 833 3 489 801 9 239 801 DEPRECIATION At 1 January 2024 Charge for year Impairment 166,393 83,197 2,874,867 344,341 3,041,260 427,538 At 31 December 2024 249 590 3 219 208 3 468 798 NET BOOK VALUE At 31 December 2024 At 31 December 2023 On adoption of FRS102 we have elected to apply the falr value of land and buildings at March 2023 as the deemed cost. 15. STOCKS 2024 2023 Consumable medical supplles Pharmacy 261,577 411,413 292 191 435 301 16. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 2024 2023 Trade debtors Prepayments and accrued income 1,136,255 400,869 1,537,124 1,291,762 742,481 2,034,243 27
FAIRFIELD INDEPENDENT HOSPITAL (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 17. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 2024 2023 Trade creditors 894,702 1,011,463 Social securlty and other taxes 218,857 388,085 Accruals and deferred income 2,127,839 677,929 C81LS Loan (Note 19) 3,241,398 2,077,477 18. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR 2024 2023 Lease deposits 721137 721 137 895 500 895 500 Lease deposlts are amounts advanced by tenants of the bungalows at Fairfield Gardens as security for their lease5. They are repayable on termlnation of the leases or sale of the property. 19. LOANS The Charity does not have any loans. As recorded In Note 18, the Charity does have £721,137 in repayable lease deposits. No inlerest is due on these deposits. 28
FAIRFIELD INDEPENDENT HOSPITAL (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 20. MOVEMENT IN FUNDS At January 2024 Galns and Lo88e8 Incomlng Re80urce8 Resources Expended At December 2024 Fund8 transferred Unrestrlcted fund8 General fund 6,476,070 16,576,810 17,300,166 Total Fund8 6,476,070 16,576,810 17,300,166 5,752,714 5,752,714 No separate statement of changes in reserves has been included in these financlal statements as there is no movement on reserves except for the surplus for the year. All funds of the Charity are unrestricted,. therefore, all assets and liabilities relate to unrestricted funds. 21. ANALYSIS OF RESERVES 2024 2023 Total reserves Less.. Land and bulldlngs Add: Lease deposits relating to land and bulldlngs Freely available reserves 5,752,714 (5,500,411) 721,137 973,440 6,476,070 (5,583,607) 895,500 1,787,963 22. FINANCIAL INSTRUMENTS 2024 2023 Financlal assets measured at amortised cost 3,251,184 3,962,534 2,092,953 2,972,977 Financial liabilities measured at amortised cost Financlal assets consist of cash and trade debtors. Financlal liabilities consist of loans, trade creditors and other creditors. 23. RELATED PARTY TRANSACTIONS During the year, some trustees or their relatives were patients at the Hospital. The trustees were treated on the same terms as all other patients. There are no other related paty transactions that need to be disclosed in the financial statements. 29
FAIRFIELD INDEPENDENT HOSPITAL (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 OPERATING LEASES Amounts committed 2024 2023 Within one year 35,562 276,797 Withln two to five years 1,709 26. PROVISION FOR LIABILITIES bff amounts- Nil Provision in year- £1.6m clf- £1.6m The Hospital has been under investigation from HMRC regarding its potentlal liabillty for VAT since an initial inquiry in July 2022. The initial inquiry was as a result of the hospitals inclusion in the response to the COVID 19 pandemic via its contract with NHS England. However, the initial inquiry has broadened In Its scope to include other aspects of the hospitals business. Solicitors have been engaged and internal analysis has been carrled out and responses have been sent to HMRC, thi5 work is ongoing. The investigation Is multifaceted and is dependent on emerging case law. Managernent conslders the best estimate at the time of signing the financial statements to be in the region of £1.2m to £1.6m with the final agreed figure to be paid in 2026. 26. EVENTS AFTER BALANCE SHEET DATE Following on from the boards strategic intention to secure a new investor, the trade and assets of the Hospltal were sold at the end of March 2025 The intended charitable activities post sale are limited to supporting local health and care charitles and health providers. 30