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2021-03-31-accounts

Charity Registration No. 700336

Company Registration No. 02213003 (England and Wales)

TARPORLEY WAR MEMORIAL HOSPITAL TRUST ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

TARPORLEY WAR MEMORIAL HOSPITAL TRUST

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees R Wright (Chairperson)
C Lees-Jones (Vice Chairperson)
A Chittenden (Appointed 3 August 2020)
C Stein (Appointed 3 August 2020)
J Iles
C Josephs (Appointed 12 October
2020)
Secretary J Iles
Charity number 700336
Company number 02213003
Registered office Park Road
Tarporley
Cheshire
CW6 0AP
Auditor McLintocks (NW) Limited
2 Hilliards Court
Chester Business Park
Chester
Cheshire
CH4 9PX
Bankers National Westminster Bank
36 High Street
Nantwich
CW5 5GA
Solicitors Joliffe & Co LLP
6 St John Street
Chester
CH1 1DA
Investment advisors James Brearley & Sons Limited
Walpole House
Unit 2
Burton Road
Blackpool
FY4 4NW
Management Managing Director - R Cowley
Business Manager - S Mills
Honorary Medical Officer - Dr P A Capbell
Hospital Sisters - K McQue & G Carr

TARPORLEY WAR MEMORIAL HOSPITAL TRUST

CONTENTS

Page
Trustees' report 1 - 8
Independent auditor's report 9 - 11
Statement of financial activities 12 - 13
Summary income and expenditure account 14
Balance sheet 15
Statement of cash flows 16
Notes to the financial statements 17 - 30

TARPORLEY WAR MEMORIAL HOSPITAL TRUST

TRUSTEES' REPORT (INCLUDING DIRECTOR'S REPORT) FOR THE YEAR ENDED 31 MARCH 2021

The Trustees present their annual report and financial statements for the year ended 31 March 2021.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the Charity's governing document, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)".

Objectives and activities

Organisational Changes

During 2020/21 we said farewell to Ms Julie Daley , our Volunteer Co-ordinator and Ms Paula Peacock , our Hospital Matron.

Mrs Jane Windsor, Mr Graham Gigg, stepped down from their positions as Trustees . B oth brought a wealth of knowledge and expertise to the Hospital.

We welcomed Mrs Caroline Stein, Mr Andrew Chittenden, Mrs Suzanne Hinchliffe and Mr Colin Josephs as Trustees.

Vision, Mission and Values

Tarporley War Memorial Hospital continues to deliver our Vision, Mission and Values so as to promote the Hospital as a preferred place of care within the local community and surrounding villages.

OUR VISION

To be at the Heart of our Community, caring for all.

OUR MISSION

To deliver the highest quality, patient-centred care to all our patients.

OUR VALUES

H ealth and wellbeing E nthusiasm A ccountability R esponsiveness T rust

From this work came our Strategic Objectives, which we continue to plan the following:

a) To be an outstanding provider b) To deliver high quality care c) To engage with stakeholders d) To become sustainable

Tarporley War Memorial Hospital is dedicated to the wellbeing of the community of Tarporley and the surrounding villages of West Cheshire . We understand that each patient and their loved ones are all unique individuals and therefore our journey with them is all the more special. Above all we are about being the HEART of the Community, caring for all.

We have a duty to report on our charity's public benefit under section four of the Charities Act 2011. We are confident that we meet those public benefit requirements having taken Charity Commission guidance into consideration. We believe we meet the public benefit requirements through the activities we undertake.

TARPORLEY WAR MEMORIAL HOSPITAL TRUST

TRUSTEES' REPORT (INCLUDING DIRECTOR'S REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

a) To be an outstanding provider – to be recognised as an outstanding provider of healthcare.

The team has worked tirelessly to ensure compliance against the Government and Public Health England guidance for Infection Prevention and Control during the pandemic. Throughout 2020/21 engagement meetings with our commissioners continued , albeit virtually , to provide assurance that TWMH met our regulatory requirements. Where we felt unable to meet these stringent requirements, we ceased to provide services, to protect both patients and staff from C OVID transmission and from a reduction in the quality of care that arose due to a lack of staff.

b) To deliver high quality care – to deliver safe and effective patient-centred care

The Clinical Quality Assurance Committee has worked with the senior nursing team to acquire the relevant assurances that care is delivered in line with evidence based best practice. We are proud of what our team has delivered during 2020/21. It was necessary during the pandemic to reduce and to cease some services due to our reduced staffing levels.

What we achieved in 2020/21

c) To engage with stakeholders – to fully engage and involve our patients, partners and public in the development of our services

As part of our commitment to engage with our stakeholders throughout 2020-21 we have had a full programme of engagement meetings to enhance the offer from and to Tarporley War Memorial Hospital. We have worked to ensure financial sustainability and to continue to fulfill the Local Delivery Plan. The current Clinical Commissioning Group (CCG) and NHS Long Term Plan set out a clear ambition to move care closer to home and reduce avoidable acute hospital activity through a greater focus on community based services and primary care. This ‘Home First Care’ roadmap forms an important part of the Trustees’ planning for the future shape and structure of care services provided from the Hospital.

d) To become sustainable – to have a stable financial platform on which to deliver enhanced services in the future

Whilst operating costs have continued to rise in recent years, the Hospital’s funding streams have remained relatively fixed. This has increased our reliance on fundraising activities, and in particular the generosity of benefactors whose donations go some way towards offsetting the substantial deficit. The Hospital continues to engage with key stakeholders to develop its offering, which will provide local patients with the quality care and services they need, whilst also supporting the NHS in achieving its long term strategic goal of maximising local and convenient care within community settings. Adapting the strategy in order to attract new funding streams in this way is absolutely key to the future, in reducing the Hospital’s annual deficit and helping to secure its financial sustainability. In parallel, we are continuing to explore ways to streamline our operations and reduce our expenditure in the next phase of our 5-year cost improvement programme.

Other Charitable Activities

By a dhering to Government guidance following the Covid-19 outbreak, many of TWMH’s other charitable activities were temporarily paused. These included Day Care Services and TWMH Poppy Café.

TWMH Minor Injuries services was paused for a period of time to support the provision of essential governance requirements. Working in collaboration with the Rural Alliance and the Care Quality Commission, the service was relaunched later in the year and a total of 39 patients received treatment. The review identified that the Hospital must not treat children under the age of 16 presenting with a minor injury.

We continue to strive to improve patient care at our wound assessment clinics, we know that this is a vital service for our local community and often receive very positive feedback from those who attend this service, 1040 sessions were provided during 2020/21.

TARPORLEY WAR MEMORIAL HOSPITAL TRUST

TRUSTEES' REPORT (INCLUDING DIRECTOR'S REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Other Charitable Activities (continued)

Tarporley War Memorial Hospital continued to work closely with Cheshire and Wirral Partnership NHS Foundation Trust to provide a satellite base for their extended hours service.

Several GPs continued to use the hospital's theatre for performing minor operations. Physiotherapy services, provided by Cheshire and Wirral Partnership NHS Foundation Trust remain very popular.

Patients and people we have supported have been extremely positive in their feedback. We have received only a small number of complaints. Each one is investigated according to a complaints management policy and the learning used to inform improvements to our services, our approach and our culture.

This has been a very difficult year for the Hospital. Our volunteers, who are an integral part of the Hospital, were asked to avoid the Hospital during this unprecedented year and all the clinical and administration staff have missed their valued support immensely.

Our team of volunteers play a vital role in TWMH. We currently have 66 volunteers registered to support the hospital in four areas; 24 support our clinical team (hospitality), 19 volunteers carry out reception duties, 18 support Day Care and 3 volunteers give their time to support our fundraising events.

Normal fundraising activities were impacted during the pandemic as lockdowns and shielding severely reduced face-to-face contact and fundraising events.

Quality statement

The Clinical Quality Assurance Group (CQAG) met 4 times during 2020/21 and is attended by trustees and clinical staff from within the H ospital.

Throughout the year the group continued to review and discuss clinical quality and gained assurance that patients under the care of TWMH benefitted from safe practice as well as achieving the best possible outcomes and experience.

2020/21 was an unprecedented year following the SARs-CoV-2 Virus (Covid 19) pandemic and subsequent lockdowns. Like many other health care settings, TWMH instigated infection control measures in line with Government and Department of Health guidance to safeguard patients, staff, and volunteers. Several staff members and all volunteers were requested to stay at home and be shielded from social contact during various waves of the pandemic.

As part of TWMH business continuity response, we implemented a plan based on the effective and rapid containment of the virus in preparation for any outbreak within the hospital. In January 2021 TWMH declared a Covid 19 outbreak which affected 19 members of staff and 4 patients. In-patients at this time were transferred to other health care facilities to ensure their health and social care needs were met.

In order to address the issues identified following the outbreak, the Management Team and Trustees worked in partnership with Public Health England, Clinical Commissioning Group, Care Quality Commission and formulated a robust action plan, progress was reported through the Clinical Quality Assurance Group (‘CQAG’) to its completion.

The Clinical Quality Assurance Group reviewed the Integrated Performance Report and Board Assurance Framework (BAF) strategic risks relating to clinical quality and workforce, gaining assurance that mitigating actions were in place. The committee continued to review clinical policies and standard operating procedures to ensure they were up to date and reflected best clinical practice.

TARPORLEY WAR MEMORIAL HOSPITAL TRUST

TRUSTEES' REPORT (INCLUDING DIRECTOR'S REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Quality statement (continued)

During 2020/21, CQAG gained assurance on the quality of care from the following metrics:-

A number of clinical audits and reported incidents were reviewed providing the committee with the assurance that appropriate action had been taken and the lessons learned were embedded in clinical practice. There were 258 incidents reported, of which 97 related to patient safety. The main three categories were falls, patients admitted with pressure ulcers, and medication incidents. CQAG was assured that the reporting of incidents reflects the culture of openness around incidents and near misses.

Achievements and performance

The Hospital met its charitable objectives for the year ending 31st March 2021. This was again achieved within the climate of intense pressure on NHS budgets and demand for services both in the NHS and the health care sector in general.

Throughout the year, the Hospital was faced with the unprecedented challenges of the Coronavirus. The pandemic had a significant impact on the 2020-21 financial performance as income streams, competition for staff, operational capacity and fundraising were all impacted hugely by the national and world crisis.

Once again the Hospital benefited from the community’s generous benefactors from fundraising, donations, and legacies, but unsurprisingly this was insufficient to prevent the Hospital making a significant deficit in the financial year.

Financial review

The Hospital produced a net deficit for the year ending 31st March 2021 of £238,051, compared with a 2020 deficit of £612,489.

Income

The Trust received a contribution of £467,380 (2020: £313,000) from the Clinical Commissioning Group (CCG) towards its charitable activities. There has been an increase in the grant during the year, which has reduced the deficit this year but there remains pressure on resources and reserves, and the Hospital’s ability to cover cost of the services it provides.

Funding income is reliant on the generosity of benefactors who have made substantial donations and legacies over many years. In the last year we have received donations of £189,416 (2020: £344,202). Legacies (£42,724) substantially increased on last year (£20,645).

Fundraising reduced this year to £19,739 (2020: £150,460). However last year was our centenary year and fundraising centred around this.

Expenditure

Costs decreased by 17% to £1,322,324 (2020: £1,589,835). Staff costs are the main item of Hospital spend which amounts to £839,751 (2020: £1,001,313). A key component in staff costs is Agency Nursing staff £74k (2020: £213k). This covers staff vacancies, as a result of the shortage of nursing staff in the market, and longterm sick cover. A key cost reduction initiative is to reduce reliance on Agency staff by recruiting permanent nursing staff, this has proved successful in reducing these costs.

The loss for the year was exacerbated by the release of an exceptional prepayment (£40,968) as a write off, relating to an expansion project on account of the project .

TARPORLEY WAR MEMORIAL HOSPITAL TRUST

TRUSTEES' REPORT (INCLUDING DIRECTOR'S REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

RESERVES AND INVESTMENTS

Reserves policy

The Hospital has in recent years typically relied on its reserves to bridge the gap between annual operating costs and income received, and also as an important source of additional income. However, the onset of the Covid-19 pandemic had a significant impact on the Hospital’s overall financial position and this placed increased pressure on its capacity to break even, and therefore on its reserves.

In light of these challenges, the Board reviewed its reserves policy and considered the ongoing risk to individual income streams; the minimum cash and reserve levels required by the Hospital to cover unexpected variations were increased accordingly to reflect the degree of risk. The review of these risks led to a change in thinking.

As a result, in September 2020, the Board began to consider whether an even more effective operating model would be to become a provider of space for the purposes of healthcare, making the Hospital’s estate available to a larger provider of NHS services. In all probability, such a provider was likely to be a statutory part of the NHS and therefore protected even more firmly than a small charity against income and expenditure variation associated with the pandemic.

Investment performance

The impact of Coronavirus on the Stock Market and the valuation of our investments at the end of March affected investment performance, with a net gain of £129,299 compared to a loss of £144,533 in 2020.

Risk management

The trustees have assessed the major risks to which the Hospital is exposed and are satisfied that systems are in place to mitigate exposure to the major risks.

The Trustees assessed that the likelihood of the Hospital being able to continue to provide similar services in the future to those provided in the recent past was becoming adversely affected by the pandemic due to:

The Trustees recognised that the pandemic resulted in impacts upon operational and financial performance which the Trustees could not fully mitigate. This led to the Trustees beginning in the autumn of 2020 to explore with stakeholders the appetite for a different operating model. In that model, the Charity would remain involved in the provision of healthcare services for West Cheshire villages and the community, albeit by providing space for a larger NHS provider organisation to be based.

In this way, the Trustees began to seek commitment from Commissioners of ongoing support for a change in business model and to ascertain the appetite amongst larger neighbo u ring NHS providers to base their services at the Hospital. After the end of the reporting period, during the summer and autumn of 2021, the confidence of the Trustees that this approach will appropriately mitigate many of the risks faced by the Charity and that it will deliver a positive result and a longer term, distinctive future for the Hospital, has grown.

TARPORLEY WAR MEMORIAL HOSPITAL TRUST

TRUSTEES' REPORT (INCLUDING DIRECTOR'S REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Plans for future periods

F uture plans and financial outlook

The Hospital is faced with a combination of unparalleled challenges because of the Covid-19 pandemic. TWMH has faced increased costs, competition for staff, reduced ability to run fundraising activities, and in the elimination of patient respite income. It has been forced to utilise its reserves to fund ongoing activities but these reserves are limited. Close monitoring of reserves and investments, cost reductions, fundraising appeals and negotiations with the CCG are at the forefront of the Hospital ’s extensive efforts to manage the operational deficit and work towards a sustainable future.

As a result, the Trustees have significantly increased their search for a suitable strategic partnership in the healthcare sector. Reviewing operational capability and financial performance over the past few years has led the Trustees to conclude that such a partnership is the best way of achieving a long-term sustainable future for the Hospital.

Tarporley is well placed to fulfil the stated aim of the Government and the CCG to place more social care support back into the community. Its aim is to establish a funded role to fulfil that objective with the commissioning partners and so place the Trust on a more substantive and economically robust footing.

During the quarter January - March 2022 the Trustees plan to conclude arrangements whereby the site will become a rural hub for the Cheshire West Integrated Care Partnership Rapid Response and Hospital at Home teams (CWICP). This is an arm of The Countess of Chester NHS Foundation Trust. This means that the charity will cease to directly provide healthcare activities and instead will make the Hospital's estate available to The Countess of Chester NHS Foundation Trust under an agreement. However, at the time of writing, December 2021, the Trustees cannot be certain that such plans, whilst enjoying wide and committed stakeholder support, will come to fruition as intended.

The Charity will still have involvement in the local community. The objectives of the charity will be unchanged. We shall continue to support the local provision of patient care and high-quality experience .

Structure, governance and management

Governing document

The Tarporley War Memorial Hospital Trust is a company limited by guarantee governed by its Memorandum and Articles of Association dated 22 January 1988. It is a registered charity with the Charity Commission dated 9 June 1988. Anyone admitted by the council can be a member of the company and there are currently 9 members, each of whom agrees to contribute £1 in the event of the Trust winding up.

Legal and administrative information set out above forms part of this report. The financial statements comply with current statutory requirements, the Memorandum and Articles of Association and the Statement of Recommended Practice - Accounting and Reporting by Charities.

The Trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:

R Wright (Chairperson) C Lees-Jones (Vice Chairperson) A Chittenden (Appointed 3 August 2020) C Stein (Appointed 3 August 2020) G Gigg (Resigned 12 October 2020) J Simpson (Resigned 16 March 2021) J Windsor (Resigned 12 October 2020) J Iles R Fallon (Resigned 31 May 2021) S Hinchliffe (Appointed 3 August 2020 and resigned 26 August 2021) C Josephs (Appointed 12 October 2020)

TARPORLEY WAR MEMORIAL HOSPITAL TRUST

TRUSTEES' REPORT (INCLUDING DIRECTOR'S REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Recruitment and appointment of new trustees

As set out in the Articles of Association one third of the Trustees shall retire from office at the Annual General Meeting. Those retiring shall be the longest serving members and determined by lot as applicable. Retiring members are eligible for re-election. Existing Trustees appoint other Trustees by proposing them in writing prior to the AGM.

Qualifying third party indemnity provisions

Organisational structure

Responsibility for the management of the Trust rests with a Board of Trustees, which must have at least three members with no maximum set. Day to day management of the Hospital is carried out by the Managing Director and Senior Management Team.

The Board of Trustees normally meets quarterly and receives updates and matters for escalation from two subcommittees, namely the Clinical Quality and Assurance Group (CQAG) and Audit Committee, who also meet quarterly. These sub-committees are made up of trustees, with members of the Hospital Management Team invited to attend and provide assurances in relation to: clinical quality (CQAG); health and safety, human resources, business and finance, and fundraising (Audit Committee).

Additionally, the Hospital Management Team meets monthly to ensure that both clinical activities and business operations are managed safely and effectively. Members include the Managing Director, Business Manager, Hospital Sisters and Honorary Medical Officer. The Hospital Management Team is supported by a number of further groups with a more specific focus on clinical services or business, finance and fundraising.

Induction and training of new trustees

New Trustees undergo a briefing on their legal obligations under charity and company law, the content of the Memorandum and Articles of Association, the committee and decision-making processes, recent financial performance and the business plan of the Trust. The briefing includes meeting other T rustees and the H ospital management team .

Statement of Trustees' responsibilities

The Trustees, who are also the directors of Tarporley War Memorial Hospital Trust for the purpose of company law, 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).

Company Law 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, including the income and expenditure, of the charitable company for that year.

In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate 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 Companies Act 2006. 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.

TARPORLEY WAR MEMORIAL HOSPITAL TRUST

TRUSTEES' REPORT (INCLUDING DIRECTOR'S REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Auditor

In accordance with the company's articles, a resolution proposing that McLintocks (NW) Limited be reappointed as auditor of the company will be put at a General Meeting.

Disclosure of information to auditor

Each of the Trustees has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such information.

The Trustees' r eport was approved by the Board of Trustees.

R Wright (Chairperson) Trustee

10 December 2021

TARPORLEY WAR MEMORIAL HOSPITAL TRUST

INDEPENDENT AUDITOR'S REPORT

TO THE TRUSTEES OF TARPORLEY WAR MEMORIAL HOSPITAL TRUST

Opinion

We have audited the financial statements of Tarporley War Memorial Hospital Trust (the ‘Charity’) for the year ended 31 March 2021 which comprise the statement of financial activities, the summary income and expenditure account, the balance sheet, the statement of cash flows and the 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 financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (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 Charity 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.

Emphasis of matter

We draw attention to note 26 to the financial statements which describes events after the reporting period in relation to the cessation of healthcare activities by the Charity. Our opinion is not modified in respect of this matter.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the Trustees' 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 uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Charity’s ability to continue as a going concern for a period of at least twelve 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 information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The Trustees are responsible for the other information contained within the annual report. 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 course of 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 financial statements 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.

We have nothing to report in this regard.

TARPORLEY WAR MEMORIAL HOSPITAL TRUST

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF TARPORLEY WAR MEMORIAL HOSPITAL TRUST

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the Charity and its environment obtained in the course of the audit, we have not identified material misstatements in the d irectors ' r eport included within the Trustees' r eport.

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:

Responsibilities of Trustees

As explained more fully in the s tatement of Trustees' r esponsibilities, the Trustees, who are also the directors of the Charity for the purpose of company law, are responsible for the preparation of the financial 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 statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the Trustees are responsible for assessing the Charity’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.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's 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 misstatement 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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below .

TARPORLEY WAR MEMORIAL HOSPITAL TRUST

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF TARPORLEY WAR MEMORIAL HOSPITAL TRUST

Enquiries of management and those charged with governance were held in order to identify any laws and regulations that could be expected to have a material impact on the financial statements. Throughout the audit, the team were updated with the outcomes of these enquiries including consideration as to where and how fraud may occur in the charity.

The audit procedures undertaken to address any potential risk in relating to irregularities (which include fraud and non-compliance with laws and regulations) included: enquiries of management and those charged with governance on how the charity complies with relevant laws, regulations and any cases actual or potential litigation or claims; examination of appropriate legal correspondence; review of board minutes; testing of journal entries for appropriateness; and analytical procedures on account balances to identify variances against expectation which may show indications of fraud.

No instances of material non-compliance were identified, although the prospect of detecting irregularities, including fraud, is inherently difficult. This is due to; difficulty in detecting irregularities; limits imposed by the effectiveness of the entity’s controls; and the nature, timing and extent of the audit procedures performed. Irregularities as a result of fraud are inherently more difficult to detect than those that resulting from error. Despite the audit has being planned and performed in accordance with ISAs (UK), there is an unavoidable risk that material misstatements may not be detected.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https:// www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

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 auditors' 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.

Michael Caputo FCA (Senior Statutory Auditor) for and on behalf of McLintocks (NW) Limited

10 December 2021

Chartered Accountants Statutory Auditor

2 Hilliards Court Chester Business Park Chester Cheshire CH4 9PX

TARPORLEY WAR MEMORIAL HOSPITAL TRUST

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2021

Current financial year
Unrestricted Endowment
funds
funds
2021
2021
Notes
£
£
Income and endowments from:
Donations and legacies
3
232,140
-
Charitable activities
4
642,674
-
Other trading activities
5
19,739
-
Investments
6
35,184
1,143
Other income
7
24,094
-
Total income and endowments
953,831
1,143
Expenditure on:
Raising funds
8
30,786
291
Charitable activities
9
1,250,279
-
Material ot her e xpenditure
11
40,968
-
Total resources expended
1,322,033
291
Net gains/(losses) on investments
14
118,971
10,328
Net (outgoing)/incoming resources before transfers
(249,231)
11,180
Gross transfers between funds
1,831
(1,831)
Net movement in funds
(247,400)
9,349
Fund balances at 1 April 2020
1,780,310
41,855
Fund balances at 31 March 2021
1,532,910
51,204		 Total
2021
£
232,140
642,674
19,739
36,327
24,094
954,974
31,077
1,250,279
40,968
1,322,324
129,299
(238,051)
-
(238,051)
1,822,165
1,584,114		 Total
2020
£
364,847
541,681
150,460
64,891
-
1,121,879
77,291
1,512,544
-
1,589,835
(144,533)
(612,489)
-
(612,489)
2,434,654
1,822,165

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

All income and expenditure derive from continuing activities.

TARPORLEY WAR MEMORIAL HOSPITAL TRUST

STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Prior financial year
Unrestricted
Restricted Endowment
funds
funds
funds
2020
2020
2020
Notes
£
£
£
Income and endowments from:
Donations and legacies
3
364,847
-
-
Charitable activities
4
541,681
-
-
Other trading activities
5
150,460
-
-
Investments
6
63,335
-
1,556
Total income and endowments
1,120,323
-
1,556
Expenditure on:
Raising funds
8
76,988
-
303
Charitable activities
9
1,512,544
-
-
Total resources expended
1,589,532
-
303
Net gains/(losses) on investments
14
(131,526)
-
(13,007)
Net (outgoing)/incoming resources before transfers
(600,735)
-
(11,754)
Gross transfers between funds
180,882
(180,882)
-
Net movement in funds
(419,853)
(180,882)
(11,754)
Fund balances at 1 April 2019
2,200,163
180,882
53,609
Fund balances at 31 March 2020
1,780,310
-
41,855		 Total
2020
£
364,847
541,681
150,460
64,891
1,121,879
77,291
1,512,544
1,589,835
(144,533)
(612,489)
-
(612,489)
2,434,654
1,822,165

TARPORLEY WAR MEMORIAL HOSPITAL TRUST

SUMMARY INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MARCH 2021

All income funds
2021
£
Gross income
953,831
Gains/(losses) on investments
118,971
Transfer from endowment funds
1,831
Total income in the reporting period
1,074,633
Total expenditure from income funds
1,322,033
Net expenditure for the year
(247,400)		 2020
£
1,120,323
(131,526)
-
988,797
1,589,532
(600,735)

TARPORLEY WAR MEMORIAL HOSPITAL TRUST

BALANCE SHEET

AS AT 31 MARCH 2021

Notes
Fixed assets
Intangible assets
15
Tangible assets
16
Investments
17
Current assets
Debtors
18
Cash at bank and in hand
Creditors: amounts falling due within
one year
19
Net current assets
Total assets less current liabilities
Creditors: amounts falling due after
more than one year
20
Net assets
Capital funds
Endowment funds - general
22
Income funds
Unrestricted funds		 2021
£
£
19,283
767,424
744,061
1,530,768
41,695
428,918
470,613
(67,267)
403,346
1,934,114
(350,000)
1,584,114
51,204
1,532,910
1,584,114		 2020
£
£
15,106
802,559
1,176,574
1,994,239
86,179
153,479
239,658
(61,732)
177,926
2,172,165
(350,000)
1,822,165
41,855
1,780,310
1,822,165

The financial statements were approved by the Trustees on 10 December 2021

R Wright (Chairperson) Trustee

Company Registration No. 02213003

TARPORLEY WAR MEMORIAL HOSPITAL TRUST

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2021

2021 2020
Notes £ £ £ £
Cash flows from operating activities
Cash absorbed by operations 29 (304,559) (590,752)
Investing activities
Purchase of intangible assets (10,958) (14,245)
Purchase of tangible fixed assets (7,184) (19,989)
Purchase of investments (154,049) (236,844)
Proceeds on disposal of investments 715,862 500,579
Investment income received 36,327 64,891
Net cash generated from investing
activities 579,998 294,392
Net cash used in financing activities - -
Net increase/(decrease) in cash and cash
equivalents 275,439 (296,360)
Cash and cash equivalents at beginning of year 153,479 449,839
Cash and cash equivalents at end of year 428,918 153,479

TARPORLEY WAR MEMORIAL HOSPITAL TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

1 Accounting policies

Charity information

Tarporley War Memorial Hospital Trust is a private company limited by guarantee incorporated in England and Wales. The registered office is Park Road, Tarporley, Cheshire, CW6 0AP.

1.1 Accounting convention

The financial statements have been prepared in accordance with the Charity's governing document, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)". The Charity is a Public Benefit Entity as defined by FRS 102.

The financial statements are prepared in sterling , which is the functional currency of the Charity . Monetary a mounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of investments at fair value. The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the financial statements, the Trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. Thus the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

Endowment funds, which arose from an undertaking by The Area Health Authority on the sale of land, represent those assets that must be held permanently by the Trust, principally investments. Income arising on the endowment funds can be used in accordance with the objects of the Trust and is transferred to be included in unrestricted income. Any capital gains or losses arising on the investments form part of the fund. Investment income and gains are allocated to the appropriate fund.

1.4 Income

Income is recognised when the Charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the Charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Legacies are recognised on receipt or otherwise if the Charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

Other income is government support packages in relation to COVID-19. These are recognised when the Charity is legally entitled to the receipt of funds.

TARPORLEY WAR MEMORIAL HOSPITAL TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

1 Accounting policies

(Continued)

1.5 Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related o the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Raising funds includes all expenditure incurred by the charity to raise funds for its charitable purposes and includes costs of all fundraising activities, events and non-charitable trading.

1.6 Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Software 4 years on cost

1.7 Tangible fixed assets

Individual assets costing £150 or more are capitalised at cost in the year including any incidental expenses of acquisition.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold land and buildings nil Leasehold improvements 2% straight line Fixtures and fittings 20% reducing balance

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities .

1.8 Fixed asset investments

Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Transaction costs are expensed as incurred. Changes in fair value are recognised in other recognised gains and losses except to the extent that a gain reverses a loss previously recognised in net income expenditure, or a loss exceeds the accumulated gains recognised in equity ; such gains and loss are recognised in net income/(expenditure) for the year .

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.

TARPORLEY WAR MEMORIAL HOSPITAL TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

1 Accounting policies

(Continued)

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the Charity transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future p aymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors 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 creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

As an exception to the usual requirements for financing transactions, a s a public benefit entity , concessionary loans provided to the charity have been accounted for at the amount received adjusted for any impairment loss. This loan is disclosed in amounts falling due in greater than one year.

Derecognition of financial liabilities

Financial liabilities are derecognised when the Charity ’s contractual obligations expire or are discharged or cancelled.

1.10 Taxation

The charity is exempt from corporation tax on its charitable activities.

1.11 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the Charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.12 Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.13 Volunteers and donated services and facilities

The value of services provided by volunteers is not incorporated into these financial statements. Further details of the contribution made by volunteers can be found in the trustees' annual report.

TARPORLEY WAR MEMORIAL HOSPITAL TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

2 Critical accounting estimates and judgements

In the application of the Charity’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3 Donations and legacies

Unrestricted Unrestricted
funds funds
2021 2020
£ £
Donations and gifts 189,416 344,202
Legacies receivable 42,724 20,645
232,140 364,847

4 Charitable activities

Hospital Hospital
2021 2020
£ £
Contribution from West Cheshire CCG 467,380 313,000
Patient's contributions - respite care and social services income 84,657 128,503
Other income - including meals, nursing and recoveries 90,637 100,178
642,674 541,681

5 Other trading activities

Unrestricted Unrestricted
funds funds
2021 2020
£ £
Fundraising events 19,739 150,460

TARPORLEY WAR MEMORIAL HOSPITAL TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

6 Investments

Unrestricted Endowment
funds
funds
general
2021
2021
£
£
Income from listed
investments
35,154
1,143
Interest receivable
30
-
35,184
1,143		 TotalUnrestricted Endowment
funds
funds
general
2021
2020
2020
£
£
£
36,297
62,863
1,556
30
472
-
36,327
63,335
1,556		 Total
2020
£
64,419
472
64,891

7 Other income

Coronavirus Job Retention Scheme
Coronavirus Government Grants
Raising funds
Unrestricted Endowment
funds
funds
general
2021
2021
£
£
Fundraising and publicity
Staging fundraising
events
27,769
-
Investment management
3,017
291
30,786
291		 Unrestricted
funds
2021
£
10,244
13,850
24,094
TotalUnrestricted Endowment
funds
funds
general
2021
2020
2020
£
£
£
27,769
72,019
-
3,308
4,969
303
31,077
76,988
303		 Total
2020
£
-
-
-
Total
2020
£
72,019
5,272
77,291

8 Raising funds

TARPORLEY WAR MEMORIAL HOSPITAL TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

9 Charitable activities

Staff costs
Depreciation and impairment
Medical supplies and provisions
Cleaning and laundry
Maintenance
Staff training
Share of support costs (see note 10)
Share of governance costs (see note 10)
Support costs
Support
costs
Governance
costs
£
£
Depreciation
6,780
-
Services
52,230
-
Office costs
25,975
-
Sundries
19,013
-
Consultancy fees
47,417
-
Bank charges
2,688
-
Legal and professional
fees
9,502
-
Audit fees
-
3,600
163,605
3,600
Analysed between
Charitable activities
163,605
3,600		 2021
£
6,780
52,230
25,975
19,013
47,417
2,688
9,502
3,600
167,205
167,205		 Hospital
2021
£
839,751
42,319
25,430
117,984
49,922
7,668
1,083,074
163,605
3,600
1,250,279
Support
costs
Governance
costs
£
£
3,483
-
52,575
-
45,406
-
22,077
-
122,983
-
2,653
-
10,376
-
-
3,800
259,553
3,800
259,553
3,800		 Hospital
2020
£
1,001,313
44,966
49,218
90,601
59,349
3,744
1,249,191
259,553
3,800
1,512,544
2020
£
3,483
52,575
45,406
22,077
122,983
2,653
10,376
3,800
263,353
263,353

10 Support costs

Governance costs includes payments to the auditors of £ 3,600 (2020- £ 3,800) for audit fees. Support costs also include £9,630 (2020 - £9,095) of fees paid to the charity's auditors in relation to non-audit services.

11 Material ot her e xpenditure

Material other expenditure totals £40,968. This is in relation to professional fees incurred for the planned expansion project, for which by 31 March 2021 the Trustees made the decision to abort the project.

TARPORLEY WAR MEMORIAL HOSPITAL TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

12 Trustees

None of the Trustees (or any persons connected with them) received any remuneration , expenses n or benefits from the Charity during the current or prior year.

13 Employees

The average monthly number of employees during the year was:

Nurses and care
Cooks
Administration
Temporary cover
Management
Total
Employment costs
Wages and salaries
Social security costs
Other pension costs		 2021
Number
21
2
5
4
6
38
2021
£
748,164
51,205
40,382
839,751		 2020
Number
22
3
5
5
2
37
2020
£
903,850
54,199
43,264
1,001,313

The number of employees whose annual remuneration was more than £60,000 is as follows:

£70,001 - £80,000
14
Net gains/(losses) on investments
Unrestricted Endowment
funds
funds
general
2021
2021
£
£
Revaluation of
investments
76,098
14,247
Gain/(loss) on sale of
investments
42,873
(3,919)
118,971
10,328		 2021
Number
1
TotalUnrestricted Endowment
funds
funds
general
2021
2020
2020
£
£
£
90,345
(163,068)
(21,896)
38,954
31,542
8,889
129,299
(131,526)
(13,007)		 2020
Number
1
Total
2020
£
(184,964)
40,431
(144,533)

TARPORLEY WAR MEMORIAL HOSPITAL TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

15 Intangible fixed assets

Cost
At 1 April 2020
Additions - separately acquired
At 31 March 2021
Amortisation and impairment
At 1 April 2020
Amortisation charged for the year
At 31 March 2021
Carrying amount
At 31 March 2021
At 31 March 2020		 Software
£
18,681
10,958
29,639
3,576
6,780
10,356
19,283
15,106

16 Tangible fixed assets

Freehold land
and buildings
Leasehold
improvements
Fixtures and
fittings
£
£
£
Cost
At 1 April 2020
350,000
891,782
482,696
Additions
-
-
7,184
At 31 March 2021
350,000
891,782
489,880
Depreciation and impairment
At 1 April 2020
144,000
403,445
374,475
Depreciation charged in the year
6,000
14,043
22,275
At 31 March 2021
150,000
417,488
396,750
Carrying amount
At 31 March 2021
200,000
474,294
93,130
At 31 March 2020
206,000
488,338
108,221		 Total
£
1,724,478
7,184
1,731,662
921,920
42,318
964,238
767,424
802,559

Freehold land and buildings with a carrying amount of £350,000 ( 2020 - £350,000) have been pledged against the concessionary loan held by the Charity . The Charity is not allowed to pledge these assets as security for other borrowings or to sell them to another entity.

Included in cost or valuation of land and buildings is freehold land of £50,000 (2020 - £50,000) which is not depreciated.

TARPORLEY WAR MEMORIAL HOSPITAL TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

17 Fixed asset investments

Listed
investments
£
Cost or valuation
At 1 April 2020 1,176,574
Additions 154,049
Valuation changes 90,345
Realised profit on disposal 38,955
Disposals (715,862)
At 31 March 2021 744,061
Carrying amount
At 31 March 2021 744,061
At 31 March 2020 1,176,574

Fixed asset investments revalued

The historical cost of listed investments at 31 March 2021 was £595,284 (2020: £921,190).

18 Debtors

Amounts falling due within one year:
Trade debtors
Prepayments and accrued income		 2021
£
4,168
37,527
41,695		 2020
£
24,644
61,535
86,179

19 Creditors: amounts falling due within one year

Other taxation and social security
Trade creditors
Other creditors
Accruals and deferred income		 2021
£
9,994
37,287
1,859
18,127
67,267		 2020
£
17,896
31,108
1,351
11,377
61,732

TARPORLEY WAR MEMORIAL HOSPITAL TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

20 Creditors: amounts falling due after more than one year

2021 2020
£ £
Borrowings 350,000 350,000

Borrowings comprise a concessionary loan provided by the North West Regional Health Authority, which is interest free and repayable after more than five years. It is secured on the freehold property.

21 Retirement benefit schemes

Defined contribution schemes

The Charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the Charity in an independently administered fund.

The charge to profit or loss in respect of defined contribution schemes was £40,382 (2020 - £43,264).

TARPORLEY WAR MEMORIAL HOSPITAL TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

22 Endowment funds

Endowment funds represent assets which must be held permanently by the Charity. Income arising on the endowment funds can be used in accordance with the objects of the Charity and is included as unrestricted income. Any capital gains or losses arising on the assets form part of the fund.

Movement in funds Movement in funds Movement in funds Movement in funds
Balance at Incoming Resources Transfers Revaluations Balance at Incoming Resources Transfers Revaluations
Balance at
1 April 2019 resources expended gains and 1 April 2020 resources expended gains and
31 March 2021
losses losses
£ £ £ £ £ £ £ £ £ £
£
Permanent endowments
Health Authority
Endowment
Fund 53,609 1,556 (303) - (13,007) 41,855 1,143 (291) (1,831)
10,328
51,204
53,609 1,556 (303) - (13,007) 41,855 1,143 (291) (1,831)
10,328
51,204

Health Authority Endowment Fund

Funds are held to generate income for charitable purposes and cannot itself be spent.

TARPORLEY WAR MEMORIAL HOSPITAL TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

23 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
in funds
Balance at Transfers Balance at Incoming
Balance at
1 April 2019 1 April 2020 resources
31 March 2021
£ £ £
£
£
Restricted income fund 180,882 (180,882) -
-
-

The restricted income fund was transferred to unrestricted funds in 2020 as no specific restrictions were applied by the donors.

24 Analysis of net assets between funds

Unrestricted
funds
Endowment
funds
TotalUnrestricted
funds
Endowment
funds
2021
2021
2021
2020
2020
£
£
£
£
£
Fund balances at 31
March 2021 are
represented by:
Intangible fixed assets
19,283
-
19,283
15,106
-
Tangible assets
767,424
-
767,424
802,559
-
Investments
692,857
51,204
744,061
1,134,719
41,855
Current assets/
(liabilities)
403,346
-
403,346
177,926
-
Long term liabilities
(350,000)
-
(350,000)
(350,000)
-
1,532,910
51,204
1,584,114
1,780,310
41,855
Capital commitments
2021
£
At 31 March 2021 the Charity had capital commitments as follows:
Contracted for but not provided in the financial statements:
Acquisition of property, plant and equipment
3,317		 Total
2020
£
15,106
802,559
1,176,574
177,926
(350,000)
1,822,165
2020
£
-

25 Capital commitments

Contracted for but not provided in the financial statements: Acquisition of property, plant and equipment

TARPORLEY WAR MEMORIAL HOSPITAL TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

26 Events after the reporting date

During the quarter January - March 2022 the Trustees plan to conclude arrangements whereby the site will become a rural hub for the Cheshire West Integrated Care Partnership Rapid Response and Hospital at Home teams (CWICP). This is an arm of The Countess of Chester NHS Foundation Trust. This means that the charity will cease to directly provide healthcare activities and instead will make the Hospital's estate available to The Countess of Chester NHS Foundation Trust under an agreement. However, at the time of writing, December 2021, the Trustees cannot be certain that such plans, whilst enjoying wide and committed stakeholder support, will come to fruition as intended.

The Charity will still have involvement in the local community. The objectives of the charity will be unchanged. The Charity shall continue to support local provision of patient care and high-quality experience.

27 Related party transactions

Remuneration of key management personnel

The key management personnel of the charity compromise, the trustees, the hospital manager and the hospital matron. The remuneration of key management personnel is as follows.

2021 2020
£ £
Aggregate compensation 76,025 133,616

It is inevitable that transactions will take place with trustees and organisations in which a trustee may have an interest. All such transactions are conducted in the ordinary course of business and are at arms length.

No donations have been made by any trustee or any persons or businesses connected with them.

28 Company Status

The charity is a company limited by guarantee and has no share capital. The members of the company are the trustees. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity.

TARPORLEY WAR MEMORIAL HOSPITAL TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

29 Cash generated from operations 2021 2020
£ £
Deficit for the year (238,051) (612,489)
Adjustments for:
Investment income recognised in statement of financial activities (36,327) (64,891)
Gain on disposal of investments (38,954) (40,431)
Fair value gains and losses on investments (90,345) 184,964
Amortisation and impairment of intangible assets 6,780 3,483
Depreciation and impairment of tangible fixed assets 42,319 44,966
Movements in working capital:
Decrease/(increase) in debtors 44,484 (43,659)
Increase/(decrease) in creditors 5,535 (62,695)
Cash absorbed by operations (304,559) (590,752)
30 Analysis of changes in net funds/(debt)
At 1 April 2020 Cash flows At 31 March 2021
£ £ £
Cash at bank and in hand 153,479 275,439 428,918
Loans falling due after more than one year (350,000) - (350,000)
(196,521) 275,439 78,918