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2023-12-31-accounts

Charity Registration No. 508876

FRIENDS OF MALVERN COMMUNITY HOSPITAL

ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

FRIENDS OF MALVERN COMMUNITY HOSPITAL

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Mr A Stevens
Mr A Sayers
Mrs A P Brennan
Mrs G Stevens
Mrs C A Pike
Mr I Blance
Ms R Mason
Charity number 508876
Registered office The Mortons
New Road
Malvern
WR13 6BT
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 2023

The trustees present their annual report and financial statements for the year ended 31 December 2023.

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

To encourage the interest of the public in the needs of the patients of the Hospital and to mobilize, encourage, foster and maintain the interest and support of the public in the Hospital.

To foster co-operation and inter-communication between Friends, other charitable institutions, Local Authorities, Hospital Authorities and National Health Service and Trusts, and local doctors.

To raise funds and to invite and receive contributions from any person or persons or organization whatsoever by way of subscription, donation or otherwise for furtherance of the Objects of the Friends.

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.

To provide, or assist in the provision of amenities for patients and staff at the Hospital such as running a hospital shop or coffee stall.

To do all such things that are necessary for the attainment of the above objects.

The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.

Achievements and performance

For the first time since Covid the charity with hospital staff ran a Summer Fete in the hospital grounds. All the money raised was donated to the hospital. In addition, in order to raise awareness of the charity and Malvern Community Hospital, the charity participated in the Malvern Well Dressing and Water Festival and Worcester Cathedral Christmas Tree Festival. In both cases having an NHS themed display. An AGM was also held, attended by members, at which Matron gave an update on hospital activities.

The hospital is busy and during the year the level of requests for equipment increased, the following equipment was provided:

Enterprise Bed 6 x High Back Armchairs Measuring Station Steam Cleaner Mangar ELK Lifting Cushions Sara Plus Sit-to-Stand

FRIENDS OF MALVERN COMMUNITY HOSPITAL

TRUSTEES REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

The Trustees consider the Trust Risks as a rolling agenda item at each Trustee meeting.

The Trusts key risks are:

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.

Financial review

The total funds of the charity at the year end amounted to £1,497,234 (2022 - £1,412,389) which £2,000 (2022 £nil) are restricted funds.

Reserves policy

Total reserves at the year end amounted to £1,497,234 (2022 £1,412,389). After eliminating investment property, the free reserves at the end of the year amounted to £1,335,234 which the trustees feel is adequate for the requirements of the charity.

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.

The trustees who served during the year and up to the date of signature of the financial statements were: A Stevens

A P Brennan G Stevens C A Pike A Sayers I Blance R Mason

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.

The trustees report was approved by the Board of Trustees.

FRIENDS OF MALVERN COMMUNITY HOSPITAL

STATEMENT OF TRUSTEES RESPONSIBILITIES

FOR THE YEAR ENDED 31 DECEMBER 2023

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:

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.

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 2023.

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:

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: 12 September 2024

FRIENDS OF MALVERN COMMUNITY HOSPITAL

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2023

Current financial year
Unrestricted
Restricted
funds
funds
2023
2023
Notes
£
£
Income from:
Donations and legacies
3
46,073
2,000
Other trading activities
4
216
-
Investments
5
70,884
-
Total income
117,173
2,000
Expenditure on:
Raising funds
6
8,830
-
Charitable activities
7
22,629
-
Total resources expended
31,459
-
Net gains/(losses) on investments
11
(2,929)
-
Net movement in funds
82,785
2,000
Fund balances at 1 January 2023
1,412,389
-
Fund balances at 31 December 2023
1,495,174
2,000
Total
2023
£
48,073
216
70,884
119,173
8,830
22,629
31,459
(2,929)
84,785
1,412,389
1,497,174
Total
2022
£
1,839
56
63,589
65,484
9,276
21,921
31,197
(184,125)
(149,838)
1,562,227
1,412,389

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

FRIENDS OF MALVERN COMMUNITY HOSPITAL

STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED) INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2023

Prior financial year

Unrestricted
Restricted
funds
funds
2022
2022
Notes
£
£
Income from:
Donations and legacies
3
639
1,200
Other trading activities
4
56
-
Investments
5
63,589
-
Total income
64,284
1,200
Expenditure on:
Raising funds
6
9,276
-
Charitable activities
7
20,721
1,200
Total resources expended
29,997
1,200
Net gains/(losses) on investments
11
(184,125)
-
Net movement in funds
(149,838)
-
Fund balances at 1 January 2022
1,562,227
-
Fund balances at 31 December 2022
1,412,389
-
Total
2022
£
1,839
56
63,589
65,484
9,276
21,921
31,197
(184,125)
(149,838)
1,562,227
1,412,389

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

FRIENDS OF MALVERN COMMUNITY HOSPITAL

STATEMENT OF FINANCIAL POSITION

AS AT 31 DECEMBER 2023

Notes
Fixed assets
Investment property
13
Investments
14
Current assets
Other receivables
15
Cash at bank and in hand
Current liabilities
16
Net current assets
Total assets less current liabilities
Income funds
Restricted funds
17
Unrestricted funds
2023
£
£
160,000
1,198,537
1,358,537
36,625
103,261
139,886
(1,249)
138,637
1,497,174
2,000
1,495,174
1,497,174
2022
£
£
160,000
1,204,329
1,364,329
-
48,660
48,660
(600)
48,060
1,412,389
-
1,412,389
1,412,389
2022
£
£
160,000
1,204,329
1,364,329
-
48,660
48,660
(600)
48,060
1,412,389
-
1,412,389
1,412,389
1,364,329
48,060
1,412,389
-
1,412,389
1,412,389

The financial statements were approved by the Trustees on 12 September 2024

FRIENDS OF MALVERN COMMUNITY HOSPITAL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

1 Accounting policies

Charity information

Friends of Malvern Community Hospital is a registered charity in England and Wales. The registered office is The Mortons, New Road, Malvern, WR13 6BT.

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 amounts 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.

FRIENDS OF MALVERN COMMUNITY HOSPITAL

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

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 at 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.

FRIENDS OF MALVERN COMMUNITY HOSPITAL

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

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
1,648
2,000
Memorial/bequests
44,425
-
Subscriptions
-
-
46,073
2,000
For the year ended 31 December 2022
639
1,200
Total
2023
£
3,648
44,425
-
48,073
Total
2022
£
1,569
70
200
1,839
1,839

4 Other trading activities

**Unrestricted ** Unrestricted
funds funds
2023 2022
£ £
Fundraising events 216 56

FRIENDS OF MALVERN COMMUNITY HOSPITAL

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

5 Investments

**Unrestricted ** Unrestricted
funds funds
2023 2022
£ £
Rental income 11,813 11,440
Income from listed investments 59,071 52,149
70,884 63,589

6 Raising funds

**Unrestricted ** Unrestricted
funds funds
2023 2022
£ £
Investment management 8,830 9,276
8,830 9,276

FRIENDS OF MALVERN COMMUNITY HOSPITAL

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

7 Charitable activities

Equipment purchases
Expenses
Miscellaneous
Garden maintenance
Repairs and maintenance
Share of governance costs (see note 8)
Analysis by fund
Unrestricted funds
For the year ended 31 December 2022
Unrestricted funds
Restricted funds
2023
£
16,461
380
316
4,404
-
21,561
1,068
22,629
22,629
22,629
2022
£
12,751
534
35
4,349
210
17,879
4,042
21,921
20,721
1,200
21,921

8 Support costs

Support costs
Support
costs
Governance
costs
£
£
Accountancy
-
660
Insurance
-
373
Legal and professional
-
35
-
1,068
Analysed between
Charitable activities
-
1,068
2023
£
660
373
35
1,068
1,068
2022
£
600
369
3,073
4,042
4,042

Governance costs includes payments to the independent examiner of £660 (2022- £600) 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.

FRIENDS OF MALVERN COMMUNITY HOSPITAL

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

10 Employees

The average monthly number of employees during the year was:

2023 2022
Number Number
Total - -

There were no employees whose annual remuneration was more than £60,000.

11 Net gains/(losses) on investments

Unrestricted Unrestricted Unrestricted Unrestricted
funds funds
2023 2022
£ £
Revaluation of investments (2,929) (173,269)
Gain/(loss) on sale of investments - (15,856)
Revaluation of investment properties - 5,000
(2,929) (184,125)

12 Taxation

The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxationof Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.

13 Investment property

Investment property
2023
£
Fair value
At 1 January 2023 and 31 December 2023 160,000

The 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.

In 2022 the Trustees increased the value of the investment property. In doing so they noted that: the letting agent had indicated an increase to £160,000 would be reasonable; that in the year the rent had been renegotiated upwards from £11,440 to £13,000 per annum with increases agreed in the lease renewal for subsequent years; and that a similar shop in Barnards Green had been for sale in the prior year at £168,000. This had a basement below it and was also placed in a busier part of Barnards Green on the main road. The Cats Protection League are the tenants at a lower rent than paid by the current tenants of the Investment Property.

For 2023 the fair value of the investment property has been determined by the trustees. The fair value was considered 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. No adjustment to the valuation of the property was considered necessary.

FRIENDS OF MALVERN COMMUNITY HOSPITAL

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

14
Fixed asset investments
Cost or valuation
At 1 January 2023
Valuation changes
Disposals
At 31 December 2023
Carrying amount
At 31 December 2023
At 31 December 2022
15
Other receivables
Amounts falling due within one year:
Prepayments and accrued income
16
Current liabilities
Accruals and deferred income
Unlisted
investments
£
1,204,329
(2,929)
(2,863)
1,198,537
1,198,537
1,204,329
2023
2022
£
£
36,625
-
2023
2022
£
£
1,249
600

FRIENDS OF MALVERN COMMUNITY HOSPITAL

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

17 Restricted funds

The income funds of the charity include restricted funds comprising the following donations and grants held on trust for specific purposes:

Balance at
1 January 2022
£
Denyer
-
Dale
-
-
Movement in funds
Movement
in funds
Incoming
resources
Resources
expended
Balance at
1 January 2023
Incoming
resources
Balance at
31 December
2023
£
£
£
£
£
-
-
-
2,000
2,000
1,200
(1,200)
-
-
-
1,200
(1,200)
-
2,000
2,000
Movement in funds
Movement
in funds
Incoming
resources
Resources
expended
Balance at
1 January 2023
Incoming
resources
Balance at
31 December
2023
£
£
£
£
£
-
-
-
2,000
2,000
1,200
(1,200)
-
-
-
1,200
(1,200)
-
2,000
2,000
2,000

During 2023 a donation was received asking that the monies donated be used at the discretion of ward staff. As at the end of the year this money had not been expended and was held in cash at bank.

During 2022 a donation was received asking that the monies donated be used for the benefit of ward staff. Following discussion with the hospital staff the monies donated were used towards the purchase a sofa for use by ward staff in the hospital.

18 Analysis of net assets between funds

Analysis of net assets between funds
Unrestricted
funds
Restricted
funds
2023
2023
£
£
Fund balances at 31
December 2023 are
represented by:
Investment properties
160,000
-
Investments
1,198,537
-
Current assets/(liabilities)
136,637
2,000
1,495,174
2,000
Total Unrestricted
funds
Restricted
funds
2023
2022
2022
£
£
£
160,000
160,000
-
1,198,537
1,204,329
-
138,637
48,060
-
1,497,174
1,412,389
-
Total
2022
£
160,000
1,204,329
48,060
1,412,389

FRIENDS OF MALVERN COMMUNITY HOSPITAL

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023

19 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. There is a lease break option in 2027.

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
2023
£
13,604
39,277
52,881
2022
£
11,440
22,880
34,320

20 Related party transactions

There were no disclosable related party transactions during the year (2022 - none).