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2022-03-31-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 2022

TARPORLEY WAR MEMORIAL HOSPITAL TRUST

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees R Wright
C Lees-Jones (Vice Chairperson)
A Chittenden
C Stein
C Josephs
R Roberts (Appointed 22 April 2022)
Charity number 700336
Company number 02213003
Registered office Park Road
Tarporley
Cheshire
CW6 0AP
Auditor Xeinadin Audit Limited
2 Hilliards Court
Chester Business Park
Chester
Cheshire
CH4 9QP
Bankers National Westminster Bank
36 High Street
Nantwich
CW5 5GA
Investment advisors James Brearley & Sons Limited
Walpole House
Unit 2
Burton Road
Blackpool
FY4 4NW

TARPORLEY WAR MEMORIAL HOSPITAL TRUST

CONTENTS

Page
Trustees' report 1 - 9
Independent auditor's report 10 - 12
Statement of financial activities 13 - 14
Balance sheet 15
Statement of cash flows 16
Notes to the financial statements 17 - 29

TARPORLEY WAR MEMORIAL HOSPITAL TRUST

TRUSTEES' REPORT (INCLUDING DIRECTOR'S REPORT) FOR THE YEAR ENDED 31 MARCH 2022

The Trustees, who are also Directors of Tarporley War Memorial Hospital Trust (‘TWMH’ or ‘the charity’) for the purposes of the Companies Act 2006, present their annual report and financial statements for the year ended 31 March 2022.

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).

During the year under review the Trustees took the decision to cease providing clinical services at the hospital following unparalleled challenges faced in 2021/22, the second year of the Covid pandemic, and previous periods. As costs increased, income also fell and the competition within healthcare to recruit, retain and reward staff became intense. Ensuring patient safety continued to be challenging. It was necessary to seek an alternative structure under which the charity could continue to support the provision of healthcare services in the community.

The Trustees are delighted that the future of the Tarporley Hospital has been secured by arrangements reached with the Countess of Chester NHS Foundation Trust (‘CoCH’) under which Tarporley Hospital premises are becoming a rural hub for the provision of services by Cheshire West Integrated Care Partnership Rapid Response and Hospital at Home teams. We have provided, and will continue to provide, updates to the community as the Countess of Chester NHS Foundation Trust develops its plans and mobilises services from the premises. The Trustees remain confident that these new arrangements, which have put the Hospital on a more secure financial footing, will bring increased and significant healthcare benefits to our local community

As this report and financial statements cover the period to March 2022, much of the information in them relates to the period in which clinical services were being provided. However we have also included information about developments that have taken place since that date as we have moved forward with the new arrangements for the future of TWMH.

Vision, Mission and Values

During 2021-22 the Trustees sought to continue to implement our Mission and Vision and to adhere to our Values, which remained unchanged from recent years and are set out below.

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

As reported above, during 2021-22 the Trustees took the decision to cease providing services directly to local people. Our consensus view was that directly providing highly regulated services to small numbers of patients was unsustainable. Services ceased on 31[st] December 2021.

It was agreed that the charity needed to evolve by facilitating others in the delivery of care rather than aiming to deliver services ourselves. Post the period end, the Trustees have initiated a review of the Mission, Vision and Values, to better reflect the charity’s new role in facilitating the delivery of healthcare services by others.

TARPORLEY WAR MEMORIAL HOSPITAL TRUST

TRUSTEES' REPORT (INCLUDING DIRECTOR'S REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

Objectives and activities

Tarporley War Memorial Hospital Trust remains dedicated to the wellbeing of the community of Tarporley and the surrounding villages. We continue to be guided by the principle that every person requiring healthcare services, and each of their loved ones, is unique and our goal remains to be at the heart of the community, supporting provision of care for all.

In 2021/22 our four objectives were:

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

The team worked tirelessly to ensure compliance against the Government and Public Health England guidance for Infection Prevention and Control during the pandemic. Throughout 2021/22, engagement meetings with our commissioners continued, albeit virtually, to provide assurance that TWMH was meeting its regulatory requirements. Where we could not be confident of providing appropriate care, we ceased to provide the relevant services.

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

The Clinical Quality Assurance Committee worked with the senior nursing team to acquire the relevant assurances that care was delivered in line with evidence based best practice. Where the evidence did not substantiate service quality, the Trustees were not willing to put patients at risk so provision of services ceased and patients were transferred to other providers of NHS care.

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

Throughout 2021/22, TWMH had frequent engagement meetings with the Clinical Commissioning Group (CCG), representatives from the Cheshire West Integrated Care Partnership (CWIP) and our local Member of Parliament, Edward Timpson, redoubling efforts to identify a new strategic partnership that would secure a long-term future for TWMH. In January 2022, Trustees announced that they had agreed to work in partnership with CoCH to enable the hospital to continue providing services to the local community.

The Trustees held an online, open meeting in January 2022 with our community stakeholders, to give an account of our stewardship during 2020/21 and to provide as much detail on the closure of the hospital for clinical services and the plans to lease the site to CoCH.

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

During 2021/22, TWMH continued to rely heavily on fundraising to supplement its annual contribution from the CCG and offset a substantial operating deficit. Conditions remained challenging for TWMH in terms of its ability to recruit sufficient staff with the necessary experience and skillset to enable TWMH to develop its service offering and deliver high-quality care. In response to these longstanding financial and operational pressures, which had been exacerbated by the Covid-19 pandemic, TWMH carried out a strategic review to identify potential partnerships that would help to secure the facility’s long-term future within the community.

The resulting partnership with the CoCH was vital to achieving financial sustainability for the Tarporley facility and, importantly, will enhance service provision within our rural area going forward. Moreover, the new arrangement supports the NHS in achieving its long-term strategic aim of maximising local and convenient care within community settings.

The new partnership also brings about a significant change to the Hospital’s operating model, with the TWMH Trust becoming a highly engaged and supportive landlord with effect from April 2022 and no longer directly providing clinical services.

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, either directly through the provision of care during 2021/22 or by fundraising to enhance the care delivered in future by our new strategic partner, CoCH, and in supporting other community-based health and wellbeing initiatives.

TARPORLEY WAR MEMORIAL HOSPITAL TRUST

TRUSTEES' REPORT (INCLUDING DIRECTOR'S REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

Other Charitable Activities

As the Covid-19 pandemic continued, Tarporley War Memorial Hospital’s other charitable activities, including Day Care Services and TWMH Poppy Café, remained closed throughout 2021/22.

During April – December 2021, TWMH’s clinical staff continued to provide Minor Injury Services working in collaboration with the Rural Alliance.

The Outpatient team continued to deliver wound assessment clinics for both Dr Campbell’s Practice and Drs Adey and Dancy until September 2021 when Drs Adey Dancy started providing this service from their own practice. Services continued to be delivered for Dr Campbell’s practice until all clinical services ceased on the 31[st] December 2021.

Several GPs continued to use the Hospital's Theatre for performing Minor Operations. Physiotherapy services, provided by Cheshire and Wirral Partnership NHS Foundation Trust as part of an annual hosting agreement with TWMH, remain very popular.

Clinical Quality Assurance Group (‘CQAG’)

The CQAG was a committee to which the Trustees delegated certain responsibilities as noted above. Following the resignation of Mrs Ros Fallon, Mrs Caroline Stein replaced her as Chair of the Clinical Quality Assurance Group. The Group met twice in 2021/22 and was attended by Trustees and clinical staff to review and discuss clinical quality and assurance that patients benefitted from safe practice as well as achievement of the best possible outcomes and experience.

The Clinical Quality Assurance Group considered and responded to issues identified by staff that were impacting the Hospital’s ability to provide safe, quality care. The Group also reviewed the Integrated Performance report and strategic risks relating to clinical quality and workforce to gain assurance that mitigating actions were in place.

The clinical management team were asked [by the CQAG] to update the Board of Trustees weekly and took appropriate actions to mitigate the identified risks by restricting inpatient admissions in line with our duty to fulfil TWMH’s contract with the Cheshire Clinical Commissioning Group.

As noted elsewhere in this report, concerns relating to patient and staff safety risks contributed to the decision taken by the Trustee Board concluded that Tarporley War Memorial Hospital should close to inpatients and cease provision of all clinical services. CGAC oversaw the safe transfer by the operational team of all inpatients to alternative care settings.

During December 2021 the Chair of CQAG reviewed the Minor Injury Services and was satisfied that, as this service was to be closed at the end of December 2021, all the patients were safely transferred back to the care of their GP within the Rural Alliance.

As direct provision of services ceased in December 2021, the CQAG oversaw a carefully planned transfer of clinical records to secure storage.

Post the year-end, and in the light of the cessation of provision of clinical services the CQAC has been disbanded.

AUDIT COMMITTEE

During the year under review, the Board delegated some duties to the Audit Committee, particularly scrutiny of the management accounts, income and expenditure, cash flow, contract performance and risk management. The Committee was chaired by John Iles until his absence and resignation and then by Andy Chittenden.

The Committee sought assurance that adequate steps were being taken to manage cash flow, to ensure that creditors were being paid in a timely fashion and that appropriate controls were in place to design and implement the planned staff redundancies. No disputes with staff, current or former, arose from the delivery of the redundancy programme.

Post the year end, and in the light of the reduction in the income and expenditure of the charity, the Board has determined that all matters shall be discussed and determined by the Board, and the Committee has been disbanded.

TARPORLEY WAR MEMORIAL HOSPITAL TRUST

TRUSTEES' REPORT (INCLUDING DIRECTOR'S REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

Achievements and performance

The Hospital again faced significant financial and operational challenges during 2021/22 and continued to be affected by the impacts of the Covid-19 pandemic, including increased competition for staff and loss of income as a result of reduced services and fundraising restrictions. Notwithstanding these difficulties, the Charity was still able to continue to provide charitable services for the public benefit during the year ending 31[st] March 2022.

The Trustees recognised during 2020 and 2021 that the pandemic, as well as continuing pressures across the NHS and healthcare sector in general, presented risks that could not be mitigated fully. At that time, the Board had begun to explore with NHS stakeholders the feasibility of alternative operating models which would enable the Charity to remain involved in the provision of healthcare, albeit most likely by providing space for another, larger NHS organisation to deliver services. An internal working group was established to continue this strategic review during 2021/22 and by January 2022 Trustees announced that TWMH had agreed to work in partnership with the Countess of Chester NHS Foundation Trust to secure the facility’s future.

During the first half of 2021/22, and prior to the strategic partnership being secured, operational pressures (particularly staffing shortages resulting from the pandemic and the continuing uncertainty) had intensified. This contributed to the difficult to decision to close the Hospital’s inpatient services in August 2021 due to concerns for the safety of patients and staff.

It was the Trustees’ view by late summer 2021 that the staff roles required for the proposed change in service model would be significantly different to those occupied by TWMH staff at that time. In view of this, Trustees announced in October 2021 that they were entering a period of redundancy consultation with all 24 members of staff. Following this, the majority of staff were made redundant and the Charity’s remaining outpatient services (minor injury and wound assessment clinics) ceased on 31[st] December 2021.

Trustees kept the local community and the Hospital’s supporters informed of progress during this period of uncertainty and the Charity continued to benefit from the generosity of benefactors through donations, community fundraising and legacies. However, as in previous years, this was not sufficient to prevent the Hospital making a substantial deficit.

Having successfully negotiated a new lease agreement with the CoCH NHS Foundation Trust with effect from April 2022, TWMH Trustees are confident that the long-term future of the facility has been secured. The Charity’s ambition is now to go above and beyond what is currently funded by the NHS to support the health and wellbeing of the local community through its fundraising.

Financial review

The Hospital produced a net deficit for the year ending 31st March 2022 of £427,953, compared with a 2021 deficit of £238,051.

Income

The Trust received a contribution of £317,380 (2021: £467,380) from the Clinical Commissioning Group (CCG) towards its charitable activities. The decrease is in relation to COVID-19 additional funding in 2021.

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 £234,759 (2021: £232,140). Legacies totalled £85,602, which was a substantial increase on the previous year (2021: £42,724).

Expenditure

Costs decreased to £1,119,532 (2021: £1,322,324). Staff costs are the main item of Hospital spend which amounts to £759,433 (2021: £839,751).

TARPORLEY WAR MEMORIAL HOSPITAL TRUST

TRUSTEES' REPORT (INCLUDING DIRECTOR'S REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

RESERVES AND INVESTMENTS

Reserves policy

Historically, TWMH has relied on its reserves to bridge a significant gap between annual operating costs and income, as well as providing a source of additional income. As a provider of clinical services, TWMH was required to take a prudent and cautious approach when setting reserve limits, so as to cover unexpected variations in income and protect the hospital’s ability to operate safely and effectively.

The onset of the Covid-19 pandemic had compounded the Charity’s financial position and increased pressure on its reserves, thus prompting the Board to explore alternative operating models to mitigate these risks. A strategic review began in September 2020 and continued during 2021/22. In January 2022, it was announced that TWMH had agreed in principle to work in partnership with the CoCH to secure the charity’s future.

By partnering with a larger NHS organisation that has greater protection against variations in income and expenditure, the Charity has been able to secure the facility’s future. Under the new operating model, TWMH Trust is now a highly engaged and supportive landlord but will also continue to fundraise. The Charity’s ambition is to go above and beyond what is currently funded by the NHS to support the health and wellbeing of the local community, including but not limited to, the services developed by the CoCH over the months and years ahead. In addition, we see the scope for facilitating others to deliver services as broader than ever before, including mental health services and those supporting younger people.

During 2022/23, the Board will be updating its investment and reserves policy, including the minimum cash and reserve levels required to cover unexpected variations in income, to reflect the reduced financial and operating risks.

Investment performance

Investments are held at £583,193 (2021: £744,061). Profit on disposal in the year amounted to £115,132.

Risk management

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.

By autumn 2021, the Trustees had concluded that the Charity’s ability to continue providing services comparable to those provided in previous years was being impeded further by the lasting effects of the pandemic and also by:

Throughout 2021, the Board continued to engage with commissioners to seek their support for a change in business model that would enable the Charity to remain involved in the provision of healthcare services for Tarporley and the surrounding villages, albeit as a landlord providing space for a larger NHS organisation to operate from the site.

By the end of 2021, TWMH Trustees were confident that this approach would ultimately succeed, thus mitigating longstanding financial and operating risks and securing a positive and sustainable future for the charity. A new partnership and lease agreement with the CoCH NHS Foundation Trust was eventually finalised on 21[st] April 2022. In light of this new service model, TWMH trustees will be reviewing their overall approach to risk management and policies during 2022/23.

TARPORLEY WAR MEMORIAL HOSPITAL TRUST

TRUSTEES' REPORT (INCLUDING DIRECTOR'S REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

Plans for future periods

Looking forward, operational expenditure and income are now broadly balanced for the first time in many years. The charity’s operating overheads have been very significantly reduced and new income secured through the lease of the building.

In April 2022, CoCH began a Phase 1 improvement programme to modernise the building for planned new services. These were completed on time and on budget to a very high standard.

The Trustees have worked with CoCH to engage with the community. Gil Martin has been retained by the charity as a Community Engagement Officer to build our community links and to re-engage with those who may have lost contact during the pandemic.

We have recruited new Trustees; we have connected with a significant new strategic partner; we are reviewing our objectives and preparing for the future.

We are open and transparent and welcome dialogue and engagement.

As we write, CoCH is preparing to open the site as a service hub for two of its community-based services.

The Hospital at Home Team (a pioneering NHS project delivered by CoCH) will manage a specific cohort of patients who can now choose to be looked after in their own home rather than be normally treated in hospital.

Patients are treated as though admitted to hospital but managed within their own home.

Hospital at Home was commissioned by NHS Western Cheshire as an alternative to hospital care, when safe to do so, taking into account social circumstances and general health – but only if the patient believes it is right for them.

A team of GPs and nurses will treat a range of ‘straight-forward’ conditions including pneumonia, chronic lung disease (COPD) and serious urinary tract and skin infections but not, for example, a heart attack.

This multi-disciplinary team will operate out of the newly refurbished part of the hospital.

The hospital will also be the base for the CoCH Rapid Response Team.

This team will be made up of community support workers, nurses, physiotherapists and occupational therapists. The service will aim to facilitate prompt and early supported discharges from hospital back into the community and thus reduce the length of patient stay and also to prevent unnecessary hospital admissions from the accident and emergency department.

These aims will be met through specialist nursing and therapy assessments. If necessary, a team will provide care and rehabilitation within a patient's home for a maximum of six weeks.

Individual needs will be continually assessed in the patient's home and the level of support will be adjusted as the individual's independence and confidence increases. If it is identified that ongoing care is required, a referral to social services will be completed.

In addition to these community-based services, a number of other clinics will also be based at the site in the near future. These will include Starting Well clinics, Care Community Teams (Leg Ulcer Treatment, Doppler clinic and Heart Failure) and Podiatry.

TARPORLEY WAR MEMORIAL HOSPITAL TRUST

TRUSTEES' REPORT (INCLUDING DIRECTOR'S REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

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 7 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 C Lees-Jones (Vice Chairperson) A Chittenden

C Stein J Iles (Resigned 18 January 2022) R Fallon (Resigned 31 May 2021) S Hinchliffe (Resigned 26 August 2021) C Josephs R Roberts (Appointed 22 April 2022) E Williams (Appointed 22 April 2022 and resigned 18 October 2022)

How the charity is managed

The Board meets regularly throughout the year, usually quarterly. During Covid, this was mainly undertaken online using video-conferencing. In 2022 calendar year, we are able to meet face to face again.

A register of outside interests is maintained and any Trustee with an actual or perceived conflict of interest is excluded from decision making in any matter relating to that outside interest.

A Board skills matrix is maintained and when areas of business or development arise in which the majority of Trustees feel inexperienced to advise, expertise is brought in from outside the charity temporarily or we seek to appoint an additional Trustee with the relevant skills, knowledge and experience.

In 2022, we have appointed two new Trustees. We placed adverts online and in local shops and used local noticeboards. Candidates were interviewed by more than a single existing Trustee and the role explained to them. New Trustees are briefed on the activities and operations of the Trust, the decision-making processes, recent financial performance and the business operations of the charity. Their induction includes meeting other Trustees and the Trust’s employees.

Recruitment and appointment of new trustees

As set out in the Articles of Association, one third of the Trustees 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 or through an appointment process conducted by more than one Trustee and ratified by the full Trustee Board.

TARPORLEY WAR MEMORIAL HOSPITAL TRUST

TRUSTEES' REPORT (INCLUDING DIRECTOR'S REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

Organisational structure

Responsibility for the management of the charity rests with the Board of Trustees. In the year under review, the Board continued to delegate some of its assurance functions to two Committees: The Clinical Quality Assurance Committee ‘CQAG’ and the Audit Committee. Their roles are described later in this report. Post the year end, both Committees were disbanded with the rationale that their functions could now be undertaken by the Board in the light of the charity’s affairs becoming considerably simplified.

Until the latter part of 2021/22, day-to-day management of the Hospital was carried out by the Managing Director and Senior Management Team. However, following the decision to change the charity’s service model – which resulted in the cessation of the charity’s directly delivered clinical services and the redundancies of most staff – this responsibility for day-to-day management of the charity’s activities passed to a small administrative team who continue to be employed by the charity. This comprises two part time staff.

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 Trustees and the Hospital 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.

Auditor

Xeinadin Audit Limited were appointed as auditor to the company and a resolution proposing that they be reappointed will be put at a General Meeting.

TARPORLEY WAR MEMORIAL HOSPITAL TRUST

TRUSTEES' REPORT (INCLUDING DIRECTOR'S REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

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' report was approved by the Board of Trustees.

A Chittenden

Trustee

17 November 2022

TARPORLEY WAR MEMORIAL HOSPITAL TRUST

INDEPENDENT AUDITOR'S REPORT

TO THE MEMBERS 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 2022 which comprise the statement of financial activities, 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.

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.

Opinions on other matters prescribed by the Companies Act 2006

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

TARPORLEY WAR MEMORIAL HOSPITAL TRUST

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

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 directors' report included within the Trustees' report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of Trustees

As explained more fully in the statement of Trustees' responsibilities, 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.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

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 relation 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.

TARPORLEY WAR MEMORIAL HOSPITAL TRUST

INDEPENDENT AUDITOR'S REPORT (CONTINUED)

TO THE MEMBERS OF TARPORLEY WAR MEMORIAL HOSPITAL TRUST

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 auditor's 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 Xeinadin Audit Limited

17 November 2022

Chartered Accountants Statutory Auditor

2 Hilliards Court Chester Business Park Chester Cheshire CH4 9QP

TARPORLEY WAR MEMORIAL HOSPITAL TRUST

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2022

Current financial year

Unrestricted Endowment
funds
funds
2022
2022
Notes
£
£
Income and endowments from:
Donations and legacies
2
234,759
-
Charitable activities
3
385,033
-
Other trading activities
4
6,504
-
Investments
5
23,277
2,020
Other income
6
2,917
-
Total income and endowments
652,490
2,020
Expenditure on:
Raising funds
7
15,794
374
Charitable activities
8
1,103,364
-
Material other expenditure
12
-
-
Total expenditure
1,119,158
374
Net gains/(losses) on investments
13
40,770
(3,701)
Net movement in funds
(425,898)
(2,055)
Fund balances at 1 April 2021
1,532,910
51,204
Fund balances at 31 March 2022
1,107,012
49,149		 Total
2022
£
234,759
385,033
6,504
25,297
2,917
654,510
16,168
1,103,364
-
1,119,532
37,069
(427,953)
1,584,114
1,156,161		 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)
1,822,165
1,584,114

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 2022

Prior financial year
Unrestricted Endowment
funds
funds
2021
2021
Notes
£
£
Income and endowments from:
Donations and legacies
2
232,140
-
Charitable activities
3
642,674
-
Other trading activities
4
19,739
-
Investments
5
35,184
1,143
Other income
6
24,094
-
Total income and endowments
953,831
1,143
Expenditure on:
Raising funds
7
30,786
291
Charitable activities
8
1,250,279
-
Material other expenditure
12
40,968
-
Total expenditure
1,322,033
291
Net gains/(losses) on investments
13
118,971
10,328
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)
1,822,165
1,584,114

TARPORLEY WAR MEMORIAL HOSPITAL TRUST

BALANCE SHEET

AS AT 31 MARCH 2022

Notes
Fixed assets
Intangible assets
14
Tangible assets
15
Investments
16
Current assets
Debtors
17
Cash at bank and in hand
Creditors: amounts falling due within
one year
18
Net current assets
Total assets less current liabilities
Creditors: amounts falling due after
more than one year
19
Net assets
Capital funds
Endowment funds - general
21
Income funds
Unrestricted funds		 2022
£
£
13,868
738,293
583,193
1,335,354
18,936
165,600
184,536
(13,729)
170,807
1,506,161
(350,000)
1,156,161
49,149
1,107,012
1,156,161		 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

The financial statements were approved by the Trustees on 17 November 2022

A Chittenden

Trustee

Company registration number 02213003

TARPORLEY WAR MEMORIAL HOSPITAL TRUST

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2022

2022 2021
Notes £ £ £ £
Cash flows from operating activities
Cash absorbed by operations 27 (467,287) (304,559)
Investing activities
Purchase of intangible assets (7,978) (10,958)
Purchase of tangible fixed assets (11,287) (7,184)
Purchase of investments (119,344) (154,049)
Proceeds from disposal of investments 327,501 722,290
Investment income received 25,297 36,327
Net cash generated from investing
activities 214,189 586,426
Net cash used in financing activities - -
Net (decrease)/increase in cash and cash
equivalents (253,098) 281,867
Cash and cash equivalents at beginning of year 435,346 153,479
Cash and cash equivalents at end of year 182,248 435,346
Relating to:
Cash at bank and in hand 165,600 428,918
Short term deposits included in current asset
investments 16,648 6,428

TARPORLEY WAR MEMORIAL HOSPITAL TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

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 amounts 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 2022

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 2022

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 payments 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, as 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 2022

2 Donations and legacies

Unrestricted Unrestricted
funds funds
2022 2021
£ £
Donations and gifts 149,157 189,416
Legacies receivable 85,602 42,724
234,759 232,140

3 Charitable activities

Hospital Hospital
2022 2021
£ £
Contribution from West Cheshire CCG 317,380 467,380
Patient's contributions - respite care and social services income 12,225 84,657
Other income - including meals, nursing and recoveries 46,136 90,637
Other income 9,292 -
385,033 642,674

4 Other trading activities

Unrestricted Unrestricted
funds funds
2022 2021
£ £
Fundraising events 6,504 19,739

TARPORLEY WAR MEMORIAL HOSPITAL TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

5 Investments

Unrestricted Endowment
funds
funds
general
2022
2022
£
£
Income from listed
investments
23,251
2,020
Interest receivable
26
-
23,277
2,020		 Total
Unrestricted
Endowment
funds
funds
general
2022
2021
2021
£
£
£
25,271
35,154
1,143
26
30
-
25,297
35,184
1,143		 Total
2021
£
36,297
30
36,327

6 Other income

Coronavirus Job Retention Scheme
Coronavirus Government Grants
Raising funds
Unrestricted Endowment
funds
funds
general
2022
2022
£
£
Fundraising and publicity
Staging fundraising
events
12,275
-
Advertising
319
-
Fundraising and publicity
12,594
-
Investment management
3,200
374
15,794
374		 Unrestricted
Unrestricted
funds
funds
2022
2021
£
£
2,917
10,244
-
13,850
2,917
24,094
Total
Unrestricted
Endowment
Total
funds
funds
general
2022
2021
2021
2021
£
£
£
£
12,275
27,769
-
27,769
319
-
-
-
12,594
27,769
-
27,769
3,574
3,017
291
3,308
16,168
30,786
291
31,077		 Unrestricted
Unrestricted
funds
funds
2022
2021
£
£
2,917
10,244
-
13,850
2,917
24,094
Total
Unrestricted
Endowment
Total
funds
funds
general
2022
2021
2021
2021
£
£
£
£
12,275
27,769
-
27,769
319
-
-
-
12,594
27,769
-
27,769
3,574
3,017
291
3,308
16,168
30,786
291
31,077
24,094
Total
2021
£
27,769
-
27,769
3,308
31,077

7 Raising funds

TARPORLEY WAR MEMORIAL HOSPITAL TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

8 Charitable activities

Staff costs
Depreciation and impairment
Medical supplies and provisions
Cleaning and laundry
Maintenance
Staff training
Share of support costs (see note 9)
Share of governance costs (see note 9)		 Hospital
2022
£
759,433
40,419
14,339
69,640
56,334
877
941,042
158,722
3,600
1,103,364		 Hospital
2021
£
839,751
42,319
25,430
117,984
49,922
7,668
1,083,074
163,605
3,600
1,250,279

9 Support costs

Depreciation
Services
Office costs
Sundries
Consultancy fees
Bank charges
Legal and professional
fees
Audit fees
Analysed between
Charitable activities		 Support
costs
Governance
costs
£
£
13,392
-
48,017
-
23,497
-
8,313
-
47,119
-
880
-
17,504
-
-
3,600
158,722
3,600
158,722
3,600		 2022
£
13,392
48,017
23,497
8,313
47,119
880
17,504
3,600
162,322
162,322		 Support
costs
Governance
costs
£
£
6,780
-
52,230
-
25,975
-
19,013
-
47,417
-
2,688
-
9,502
-
-
3,600
163,605
3,600
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

Governance costs includes payments to the auditors of £3,600 (2021- £3,600) for audit fees. Support costs also include £9,000 (2021 - £9,630) of fees paid to the charity's auditors in relation to non-audit services.

10 Trustees

None of the Trustees (or any persons connected with them) received any remuneration, expenses nor benefits from the Charity during the current or prior year.

TARPORLEY WAR MEMORIAL HOSPITAL TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

11 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		 2022
Number
15
1
4
-
5
25
2022
£
693,891
45,536
20,006
759,433		 2021
Number
21
2
5
4
6
38
2021
£
748,164
51,205
40,382
839,751
The number of employees whose annual remuneration was more than £60,000
is as follows:
2022 2021
Number Number
£70,001 - £80,000 - 1
£100,001 - £110,000 1 -

12 Material other expenditure

Material other expenditure totals £NIL (2021: £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 2022

13 Net gains/(losses) on investments

Unrestricted Endowment
funds
funds
general
2022
2022
£
£
Revaluation of
investments
(73,781)
(4,283)
Gain/(loss) on sale of
investments
114,551
582
40,770
(3,701)		 Total
Unrestricted
Endowment
funds
funds
general
2022
2021
2021
£
£
£
(78,064)
76,098
14,247
115,133
42,873
(3,919)
37,069
118,971
10,328		 Total
2021
£
90,345
38,954
129,299

14 Intangible fixed assets

Cost
At 1 April 2021
Additions - separately acquired
At 31 March 2022
Amortisation and impairment
At 1 April 2021
Amortisation charged for the year
At 31 March 2022
Carrying amount
At 31 March 2022
At 31 March 2021		 Software
£
29,638
7,978
37,616
10,355
13,393
23,748
13,868
19,283

TARPORLEY WAR MEMORIAL HOSPITAL TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2022

15 Tangible fixed assets

Freehold land
and buildings
Leasehold
improvements
Fixtures and
fittings
£
£
£
Cost
At 1 April 2021
350,000
891,782
489,880
Additions
-
-
11,287
At 31 March 2022
350,000
891,782
501,167
Depreciation and impairment
At 1 April 2021
150,000
417,488
396,750
Depreciation charged in the year
6,000
14,043
20,375
At 31 March 2022
156,000
431,531
417,125
Carrying amount
At 31 March 2022
194,000
460,251
84,042
At 31 March 2021
200,000
474,294
93,130		 Total
£
1,731,662
11,287
1,742,949
964,238
40,418
1,004,656
738,293
767,424

Freehold land and buildings with a carrying amount of £350,000 (2021 - £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 (2021 - £50,000) which is not depreciated.

16 Fixed asset investments

Listed
investments
£
Cost or valuation
At 1 April 2021
737,636
Additions
119,344
Valuation changes
(78,064)
Realised profit on disposal
115,132
Movement on cash
-
Disposals
(327,503)
At 31 March 2022
566,545
Carrying amount
At 31 March 2022
566,545
At 31 March 2021
737,636		 Cash in
portfolio
6,425
-
-
-
10,221
-
16,646
16,646
6,425		 Total
£
744,061
119,344
(78,064)
115,132
10,221
(327,503)
583,191
583,191
744,061

TARPORLEY WAR MEMORIAL HOSPITAL TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

16 Fixed asset investments

(Continued)

Fixed asset investments revalued

The historical cost of listed investments at 31 March 2022 was £497,562 (2021: £595,284).

17 Debtors

Amounts falling due within one year:
Trade debtors
Prepayments and accrued income
18
Creditors: amounts falling due within one year
Other taxation and social security
Trade creditors
Other creditors
Accruals and deferred income
19
Creditors: amounts falling due after more than one year
Borrowings		 2022
£
290
18,646
18,936
2022
£
1,312
6,675
-
5,742
13,729
2022
£
350,000		 2021
£
4,168
37,527
41,695
2021
£
9,994
37,287
1,859
18,127
67,267
2021
£
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.

20 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 £20,006 (2021 - £40,382).

TARPORLEY WAR MEMORIAL HOSPITAL TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

21 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 Movement in funds
Balance at Incoming Resources Transfers Revaluations Balance at Incoming Resources Revaluations Balance at
1 April 2020 resources expended gains and
1 April 2021		 resources expended gains and 31 March
losses losses 2022
£ £ £ £ £ £ £ £ £ £
Permanent endowments
Health Authority Endowment
Fund 41,855 1,143 (291) (1,831) 10,328 51,204 2,020 (374) (3,701) 49,149
41,855 1,143 (291) (1,831) 10,328 51,204 2,020 (374) (3,701) 49,149

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 2022

22
Analysis of net assets between funds
Unrestricted
funds
Endowment
funds
2022
2022
£
£
Fund balances at 31
March 2022 are
represented by:
Intangible fixed assets
13,868
-
Tangible assets
738,293
-
Investments
534,044
49,149
Current assets/(liabilities)
170,807
-
Long term liabilities
(350,000)
-
1,107,012
49,149		 Total
Unrestricted
funds
Endowment
funds
2022
2021
2021
£
£
£
13,868
19,283
-
738,293
767,424
-
583,193
692,857
51,204
170,807
403,346
-
(350,000)
(350,000)
-
1,156,161
1,532,910
51,204		 Total
2021
£
19,283
767,424
744,061
403,346
(350,000)
1,584,114

23 Operating lease commitments

At the reporting end date the Charity had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Within one year
Between two and five years
24
Capital commitments
At 31 March 2022 the Charity had capital commitments as follows:
Contracted for but not provided in the financial statements:
Acquisition of property, plant and equipment		 2022
£
518
778
1,296
2022
£
28,000		 2021
£
-
-
-
2021
£
3,317

25 Events after the reporting date

On the 21st April 2022 the charity signed a lease agreement with the Countess of Chester Hospital NHS Foundation Trust to lease out the freehold property for an annual rent over an initial 3 year period.

As such at this date the charity donated its fixtures and fittings included within tangible fixed assets to the Countess of Chester Hospital NHS Foundation Trust for a notional value of £5. Therefore, after the year end the property will now be included in the financial statements as investment property.

TARPORLEY WAR MEMORIAL HOSPITAL TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

26 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.

2022 2021
£ £
Aggregate compensation 150,220 76,025

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.

Trustees and their related enterprises made donations to the charity totalling £32,075 (2021: £5,000).

27 Cash generated from operations 2022 2021
£ £
Deficit for the year (427,953) (238,051)
Adjustments for:
Investment income recognised in statement of financial activities (25,297) (36,327)
Gain on disposal of investments (115,133) (38,954)
Fair value gains and losses on investments 78,064 (90,345)
Amortisation and impairment of intangible assets 13,392 6,780
Depreciation and impairment of tangible fixed assets 40,419 42,319
Movements in working capital:
Decrease in debtors 22,759 44,484
(Decrease)/increase in creditors (53,538) 5,535
Cash absorbed by operations (467,287) (304,559)
28 Analysis of changes in net debt
At 1 April 2021 Cash flowsAt 31 March 2022
£ £ £
Cash at bank and in hand 428,918 (263,318) 165,600
Cash equivalents 6,428 10,220 16,648
435,346 (253,098) 182,248
Loans falling due after more than one year (350,000) - (350,000)
85,346 (253,098) (167,752)