Charity Registration No. 508876
FRIENDS OF MALVERN COMMUNITY HOSPITAL
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
FRIENDS OF MALVERN COMMUNITY HOSPITAL
LEGAL AND ADMINISTRATIVE INFORMATION
| Trustees | Mr J I' Anson |
|---|---|
| Mrs J M Williams | |
| Mr A Stevens | |
| Mrs E Winwood | |
| Mrs J Brown | |
| Mrs A Brennan | |
| Mrs G Stevens | |
| Mrs J Birch | |
| Mrs C Pike | |
| Mrs E Tidball | |
| Charity number | 508876 |
| Registered office | 55 Geraldine Road |
| Malvern | |
| WR14 3NU | |
| Independent examiner | Kendall Wadley LLP |
| Granta Lodge | |
| 71 Graham Road | |
| Malvern | |
| Worcestershire | |
| WR14 2JS | |
| Investment advisors | EFG Harris Allday |
| Church Mews | |
| Ombersley | |
| Worcestershire | |
| WR9 0EW |
FRIENDS OF MALVERN COMMUNITY HOSPITAL
CONTENTS
| Page | |
|---|---|
| Trustees report | 1 - 2 |
| Statement of trustees responsibilities | 3 |
| Independent examiner's report | 4 |
| Statement of financial activities | 5 - 6 |
| Statement of financial position | 7 |
| Notes to the financial statements | 8 - 16 |
FRIENDS OF MALVERN COMMUNITY HOSPITAL
TRUSTEES REPORT FOR THE YEAR ENDED 31 DECEMBER 2020
The trustees present their report and financial statements for the year ended 31 December 2020.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's Constitution , the Charities Act 2011 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (as amended for accounting periods commencing from 1 January 2019)
Objectives and activities
The charity's objects are the welfare of patients and staff and the support of the charitable work of the hospital.
To supplement the service provided by the Hospital for health, welfare and comfort of the patients and staff therein by the provision of extra equipment which may be required for the treatment of such patients.
The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.
Achievements and performance
The following equipment was provided:
Therapy chairs Alarm kits CR8-UK beds Transfusion room TV Connex Spot Monitors Motomed Loop therapy device Neurology couch 5 Sara Stedy Configura advance chairs Handheld vein viewing system Bariatric steel crutches & walking frames Cleaning equipment
Financial review
The total funds of the charity at the year end amounted to £ 1, 423 , 367 (2019 - £ 1, 518 , 876 ) which are unrestricted funds.
Reserves policy
The charity is run on a case by case basis, total reserves at the year end amounted to £1,268 , 367 (2019 £1,363 , 876) after eliminating investment property. The free reserves at the end of the year amounted to £ 1, 268 , 367 which the trustees feel is more than adequate for the requirements of the charity.
The trustees have assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.
Plans for the future
The trustees will continue to respond to requests from the Hospital for assistance, mainly in the provision of goods and occasionally services.
Structure, governance and management
Friends of Malvern Community Hospital is a registered charity and is governed by its Constitution adopted 13/09/1979 and as amended 27/03/2011 and 25/04/2018.
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FRIENDS OF MALVERN COMMUNITY HOSPITAL
TRUSTEES REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020
The trustees who served during the year and up to the date of signature of the financial statements were: A Stevens M Willliams L Winwood (Retired 31 December 2020) J S L'Anson J E Brown (Retired 31 December 2020) A P Brennan G Stevens J S Birch C A Pike E Tidball
Trustees are selected for the skills they can offer to the charity and are fully inducted on appointment.
The trustees undertake the day-to-day management of the charity together with the Committee Members
The trustees r eport was approved by the Board of Trustees.
A Stevens
Dated: 10 May 2021
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FRIENDS OF MALVERN COMMUNITY HOSPITAL
STATEMENT OF TRUSTEES RESPONSIBILITIES
FOR THE YEAR ENDED 31 DECEMBER 2020
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).
The law applicable to charities in England and Wales requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that year.
In preparing these financial statements, the trustees are required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charities SORP;
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make judgements and estimates that are reasonable and prudent;
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state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The trustees are responsible for keeping sufficient accounting records that 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.
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FRIENDS OF MALVERN COMMUNITY HOSPITAL
INDEPENDENT EXAMINER'S REPORT
TO THE TRUSTEES OF FRIENDS OF MALVERN COMMUNITY HOSPITAL
I report to the trustees on my examination of the financial statements of Friends of Malvern Community Hospital (the charity) for the year ended 31 December 2020.
Responsibilities and basis of report
As the trustees of the charity you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 (the 2011 Act).
I report in respect of my examination of the charity’s financial statements carried out under section 145 of the 2011 Act . In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
Independent examiner's statement
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:
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1 accounting records were not kept in respect of the charity as required by section 130 of the 2011 Act; or
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2 the financial statements do not accord with those records; or
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3 the financial statements do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination.
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.
Sarah J. Morley BA (Hons) ACA Kendall Wadley LLP Granta Lodge 71 Graham Road Malvern Worcestershire WR14 2JS Dated: 10 May 2021
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FRIENDS OF MALVERN COMMUNITY HOSPITAL
STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2020
| Current financial year Unrestricted Restricted funds funds 2020 2020 Notes £ £ Income from: Donations and legacies 3 6,013 82 Other trading activities 4 58 - Investments 5 58,655 - Total income 64,726 82 Expenditure on: Raising funds 6 8,557 - Charitable activities 7 69,943 82 Total resources expended 78,500 82 Net gains/(losses) on investments 11 (81,735) - Net movement in funds (95,509) - Fund balances at 1 January 2020 1,518,876 - Fund balances at 31 December 2020 1,423,367 - |
Total 2020 £ 6,095 58 58,655 64,808 8,557 70,025 78,582 (81,735) (95,509) 1,518,876 1,423,367 |
Total 2019 £ 11,661 1,322 61,950 74,933 8,937 27,169 36,106 162,403 201,230 1,317,646 1,518,876 |
|---|---|---|
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
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FRIENDS OF MALVERN COMMUNITY HOSPITAL
STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED) INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2020
Prior financial year
| Unrestricted funds 2019 Notes £ Income from: Donations and legacies 3 11,661 Other trading activities 4 1,322 Investments 5 61,950 Total income 74,933 Expenditure on: Raising funds 6 8,937 Charitable activities 7 27,169 Total resources expended 36,106 Net gains/(losses) on investments 11 162,403 Net movement in funds 201,230 Fund balances at 1 January 2019 1,317,646 Fund balances at 31 December 2019 1,518,876 |
Total 2019 £ 11,661 1,322 61,950 74,933 8,937 27,169 36,106 162,403 201,230 1,317,646 1,518,876 |
|---|---|
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
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FRIENDS OF MALVERN COMMUNITY HOSPITAL
STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2020
| Notes Fixed assets Investment properties 12 Investments 13 Current assets Cash at bank and in hand Current liabilities 14 Net current assets Total assets less current liabilities Income funds Unrestricted funds |
2020 £ £ 155,000 1,241,298 1,396,298 27,669 (600) 27,069 1,423,367 1,423,367 1,423,367 |
2019 £ £ 155,000 1,290,385 1,445,385 76,891 (3,400) 73,491 1,518,876 1,518,876 1,518,876 |
|---|---|---|
The financial statements were approved by the Trustees on 10 May 2021
A Stevens Trustee
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FRIENDS OF MALVERN COMMUNITY HOSPITAL
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
1 Accounting policies
Charity information
Friends of Malvern Community Hospital is a registered charity in England and Wales. The registered office is 55 Geraldine Road, Malvern, WR14 3NU.
1.1 Accounting convention
The financial statements have been prepared in accordance with the charity's Constitution adopted 13/09/1979 and amended on 27/03/2011 and 25/04/2018, the Charities Act 2011 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (as amended for accounting periods commencing from 1 January 2019). The charity is a Public Benefit Entity as defined by FRS 102.
The charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.
The financial statements are prepared in sterling , which is the functional currency of the charity. Monetary a mounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2 Going concern
At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3 Charitable funds
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity.
1.4 Incoming resources
Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.
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FRIENDS OF MALVERN COMMUNITY HOSPITAL
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020
1 Accounting policies
(Continued)
1.5 Resources expended
Liabilities are included in the financial statements as soon as recognised.
Costs of generating funds comprise those costs associated with attracting voluntary income and the cost of trading for fundraising purposes.
Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.
Grants payable are included in the statement of financial activities when approved.
Governance costs include those costs associated with meeting the constitutional and statutory requirements of the charity.
All costs are allocated between the expenditure categories of the SOFA on a basis designed to reflect the use of the resource. Costs relating to a particular activity are allocated directly, whereas other costs are apportioned on a basis of estimated usage.
1.6 Investment properties
Investment property, which is property held to earn rentals and/or for capital appreciation, was acquired through a legacy and measured at fair value on acquisition, this valuation is re-assessed a t the reporting period end date. The surplus or deficit on revaluation is recognised through the statement of financial activities.
1.7 Non-current investments
Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year . Transaction costs are expensed as incurred.
1.8 Cash and cash equivalents
Cash and cash equivalents include cash in hand, deposits held at call with banks .
1.9 Financial instruments
The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include trade and other receivables and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost. Financial assets classified as receivable within one year are not amortised.
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FRIENDS OF MALVERN COMMUNITY HOSPITAL
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020
1 Accounting policies
(Continued)
Basic financial liabilities
Basic financial liabilities, including trade and other payables are initially recognised at transaction price. Financial liabilities classified as payable within one year are not amortised.
Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Derecognition of financial liabilities
Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.
2 Critical accounting estimates and judgements
In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3 Donations and legacies
| Unrestricted Restricted funds funds £ £ Donations and gifts 4,380 82 Legacies receivable - - Memorial/bequests 1,308 - Subscriptions 248 - Other 77 - 6,013 82 For the year ended 31 December 2019 11,661 - Legacies receivable Leonie Rimmer - - Peter Pullin - - - - |
Total 2020 £ 4,462 - 1,308 248 77 6,095 - - - |
Total 2019 £ 3,738 5,100 1,926 275 622 11,661 11,661 100 5,000 5,100 |
|---|---|---|
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FRIENDS OF MALVERN COMMUNITY HOSPITAL
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020
4 Other trading activities
| 5 6 |
UnrestrictedUnrestricted funds funds 2020 2019 £ £ Fundraising events 58 1,322 Investments UnrestrictedUnrestricted funds funds 2020 2019 £ £ Rental income 8,580 11,440 Income from listed investments 50,075 50,510 58,655 61,950 Raising funds UnrestrictedUnrestricted funds funds 2020 2019 £ £ Fundraising and publicity Staging fundraising events - 215 Investment management 8,557 8,722 8,557 8,937 |
|---|---|
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FRIENDS OF MALVERN COMMUNITY HOSPITAL
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020
7 Charitable activities
| Equipment purchases Expenses Miscellaneous Garden maintenance Share of governance costs (see note 8) Analysis by fund Unrestricted funds Restricted funds For the year ended 31 December 2019 Unrestricted funds Support costs Support costs Governance costs £ £ Accountancy - 660 Insurance - 302 - 962 Analysed between Charitable activities - 962 |
2020 £ 64,743 98 277 3,945 69,063 962 70,025 69,943 82 70,025 2020 Support costs Governance costs £ £ £ 660 - 540 302 - 298 962 - 838 962 - 838 |
2019 £ 19,403 127 668 6,133 26,331 838 27,169 27,169 27,169 2019 £ 540 298 838 838 |
|---|---|---|
8 Support costs
Governance costs includes payments to the independent examiner of £ 660 (2019- £540) for examination fees.
9 Trustees
None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.
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FRIENDS OF MALVERN COMMUNITY HOSPITAL
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020
10 Employees
The average monthly number of employees during the year was:
| 2020 | 2019 | |
|---|---|---|
| Number | Number | |
| Total | - | - |
| Net gains/(losses) on investments | ||
| Unrestricted | Unrestricted | |
| funds | funds | |
| 2020 | 2019 | |
| £ | £ | |
| Revaluation of investments | (40,864) | 159,679 |
| Gain/(loss) on sale of investments | (40,871) | 2,724 |
| (81,735) | 162,403 |
11 Net gains/(losses) on investments
12 Investment property
| Investment property | |
|---|---|
| 2020 | |
| £ | |
| Fair value | |
| At 1 January 2020 and 31 December 2020 | 155,000 |
Investment property comprises a freehold shop situated in Barnards Green, Worcestershire. A valuation was carried out by a qualified independent surveyor when acquired, in connection with the estate of Peggy Irene Jones.
The fair value of the investment property has been determined by the trustees. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties and the % growth rate of the property market over the year, having due regard to any impairment provision necessary.
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FRIENDS OF MALVERN COMMUNITY HOSPITAL
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020
13 Fixed asset investments
| Unlisted | |
|---|---|
| investments | |
| £ | |
| Cost or valuation | |
| At 1 January 2020 | 1,290,385 |
| Additions | 106,147 |
| Valuation changes | (81,741) |
| Disposals | (73,493) |
| At 31 December 2020 | 1,241,298 |
| Carrying amount | |
| At 31 December 2020 | 1,241,298 |
| At 31 December 2019 | 1,290,385 |
14 Current liabilities
| 2020 | 2019 | |
|---|---|---|
| £ | £ | |
| Accruals and deferred income | 600 | 3,400 |
15 Restricted funds
The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:
| Movement | Movement in funds | Movement in funds | |||||
|---|---|---|---|---|---|---|---|
| in funds | |||||||
| Balance at | Incoming | Balance at |
Incoming | Resources | Balance at | ||
| 1 | January 2019 | resources | 1 January 2020 |
resources | expended | 31 December | |
| 2020 | |||||||
| £ | £ |
£ |
£ | £ | £ | ||
| Ashleigh Gascoigne Fund | - | - |
- |
82 | (82) | - |
Dr Gascoigne donated the fee he received for signing death certificates and requested that it was spent on the staff in a supportive way. The funds went towards a buffet provided to boost staff morale. All funds were spent during the year.
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FRIENDS OF MALVERN COMMUNITY HOSPITAL
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020
16 Analysis of net assets between funds
| Unrestricted funds Restricted funds 2020 2020 £ £ Fund balances at 31 December 2020 are represented by: Investment properties 155,000 - Investments 1,241,298 - Current assets/(liabilities) 27,069 - 1,423,367 - |
TotalUnrestricted funds 2020 2019 £ £ 155,000 155,000 1,241,298 1,290,385 27,069 73,491 1,423,367 1,518,876 |
|---|---|
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FRIENDS OF MALVERN COMMUNITY HOSPITAL
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020
17 Operating lease commitments Lessor
The operating lease represents a lease of a property to a third party. The lease is negotiated over a period of 10 years.
At the reporting end date the charity had contracted with tenants for the following minimum lease payments:
| Within one year Between two and five years |
2020 £ 11,440 22,880 34,320 |
2019 £ 11,440 22,880 34,320 |
|---|---|---|
18 Related party transactions
There were no disclosable related party transactions during the year (2019 - none).
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