Charlty rngistratlon number 900063 THE BOURNEMOUTH CHEST DISEASES CHARITABLE TRUST ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2022 THE BOURNEMOUTH CHEST DISEASES CHARITABLE TRUST LEGAL AND ADMINISTRATIVE INFORMATION Trustses Retrd J H Simmons Dr S M Malpas MB, Bth, BAO Dr JAM Tumer QHP, FRCP Dr R E K Russell PhD, FRCP MrASimmons Dr C KÈdderbum (Appointed 12 July 20221 Honorary Secretary Dr D Laws FRCP Charfty number 900063 Prlnclpal address Royal Boumemouth Hospital Castle Lane BoumemoLrth Dorset BH7 7DW Independgnt examiner Peter Barton FCCA ART Accountants Limited Ground Floor 11 Manvers Street Bath BA1 1JQ Bankars National Westminster Bank Ple The Casllepoinl Centre Castle Lane ￿$1 Boumemouth BH8 9US THE BOURNEMOUTH CHEST DISEASES CHARITABLE TRUST CONTENTS Page Trustees, report Independent examiner's report Statement of finanaal actiwbes Balance sh9et Notes lo the finanual statements 7-13 THE BOURNEMOUTH CHEST DISEASES CHARITABLE TRUST TRUSTEES. REPORT FOR THE YEAR ENDED 5 APRIL 2022 The trustees present their annual rewt and financial statements for the year ended 5 April 2022. The )Inancial stalaments have been prepared in accordance wrth the 8ccounting policies set out in note 1 to the financial Statements and comply wth the chariV5 Igoveming documentl, the Charities Act 2011 and "Accounting and Reporting by Charities." Statement of Recommended Practice applicable to charities preparing their accounts in 8ecordanee wth the Financial Reporting Standaro applicable in the UK and Republi¢ of Ireland IFRS 1021 leffectsvg l January 20191. ob19c￿ve$ and aetlvltles The Boumemouth Chest Diseases Charitable Twst was estsblished in February 1989 in Boumemouth, Dorsel the purpose of "relieving persons under the care of the Chest Physicians in the East Dorset Heath ￿thority and suffering from Chest Diseases.. In order lo aehieve these objectives the TTUStees are empowered lo "assist in the provision of imsxoved facilities for investigation, diagnosis, education and treatment of patients attending the Royal National Hospttal, the Royal Victoria Hospital and the Bournemouth General Hospital. The TNstees are futhermore empowered to assist persons Chronic Chest Diseases in the management of their condrtton al home by the provision of any necessary seNces and equipment for the benefit of suth persons.. Since the drawing up of the Deed, the Royal National Hospital and the Royal Mctoria Hospitals have closed, and the Boumemoulh General Hospitsl has been renamed "The Royal BoumemoLrth Hospital". The Trustees identify projects and org8Trisations they wsh lo support and so the Trust does not make grants to people or organisalions that apply speculatively. They believe thal the public benefit requirement fvlly satisfied as the support is provided through Hospitals ¥￿ich a￿ open to all ￿thin the catchment area covered by the Trust. The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake. Proc&dures and polS¢y for maklng grants The Trustees normally meet t￿.ce a year lo consider what grants they will make and to review any feedback they have received. Nominations for grants are elicited by fomial and infornial means. The fomial means involves inviting the Bournemouth and Poole Hospital Management to submtt grant requests for developments that lie wlhin the Trust's objects. Though the Trustees make some Sm￿1 grants with no formal application. they nom1811y ask other organisalions lo submit a fom)al application saying how the fvnd$ would be used and what would bfy achieved. The Trustees, policy. which is communicated to all beneficiaries, Is to commrt lo grants for a M￿muM of three years. wlh no guarantee ol funding beyond that period. Achlgvements and performance Grants towards various projects have been continued during the year from the Designated Funds, as detailed in note 6 and 15 to the Accounts. It is the Trustees. policy to utilise the Tnjsl income mainly for such grants in future years. Grants are made in order to improve patsenl Ca￿ where He8tth Service funding is not available. The impact of grants made is reviewed by the Trustees al each Twslee meetiNJ. and they are 8atisfied that significant improvements in patient care have been achieved. THE BOURNEMOUTH CHEST DISEASES CHARITABLE TRUST TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2022 Flnancial revlew During the year ènded Sth April 2022 the Trust received gifts. grants, legacies and bequests totalling £5,02512021 £nill. It also received investment income of £154.928 {2021 - £142.513). The Trust's funds are all unrestricted, but the Trustees have designated funds for future projects separately. A transfer to the designated ftjnds amounting lo £46.640 has been made in the year. representing a nel increase in the commitments agreed by the Trustees. At the ye8r•nd the balan￿ of designated fvnds stood at £956,500 {2021 £957.1001, as summarised in note 15. The over811 result for the year shows a surplus of £722.12712021- surplus £331.6361. Inclijded in the surplus is an unrealised profil on the revaluation of the Charities Propety Fund of £145,674 {2021 loss of £15,208) and an unrealised profit of £133,355 on the revaluation of the Rathbones investment portfolio12021 profil of £259.9881. The closing fiJnd balance stood at £4,344,521,12021- £3,622,394). 11 is the poliw of the charity that unrestricted funds which have not been tlesFgnated for a specific use should be maintained al a minlmum level equivalent to six morth's expenditure. The trustees considers that reserves at this level wll ensure that. in the event of a $ignifi¢ant drop in fundirtg, they wll be able lo continue the charity's current activities whi18 consideration is given lo ways in which addrtional funds may be raised. This level of reserves has been maintained throughout the year. The Trustees, investment policy is to invest paruy in ￿mMerCIal propety vth an above average ￿eld in order to maintain income for immediate use. and partly in a managed quoted portfolio lo provide a balance be￿eeTr income and long lemi growth. The Trustees aim to retain suffirAent IiquTd funds on immediate access and short temi deposits to meet their fiJtU￿ commth)ents. The Iruslees has assessed the mapr risks lo the charty is exposed, and are satisfied that systems are in place to mitigate exP)Su￿ to the major risks. The Trustees annually remew the risks that the Charity laces. To date these have mainly related lo investment management and havè been ameliorated by the sale of individual properties and reinvèstment of the proceeds in the Charities Pfopety Fund. Investments are held for the longer lem. and are deggned to provide wfficienl income lo enable the Trust lo cary out its objectives. Plans for future perlods The Trustees intend lo continue providing grants in a similar way io the recent past continuing the emphasis on projects at Bournemouth and Poole Hospitsls and wih IoG41 Primary Care Trusts. and for training, but retaining flexibility a5 to the liming, and scale of grant making. It is likely that within the foreseeable ftrture. there will be a major building project al the Royal Boumemoulh Hospital, which will involve the Thoracic Medi￿ne Department. The Trustees would wish to support the continuing excellence of the Thoracic Medicine Department and to this end have designated the sum of £750.000 lo be held in reserve towards any requests that may be agreed for thi5 wrpo8e. Structuro. governance and management The charity was establishe(l in February 1989 and is registered wrth the Charity Commission No. 900C63. The charity is an unincorporated body whose goveming document Is 8 Twst Deed. The Iruslees who served during the year and up to the date of Signatu￿ of the financial statements were". Rev'd J H Simmons Dr S M Malpas MB, B¢h, BAO Dr J W Millar BS¢, MB, ChB, FRCPIEdin) Dr JAM Tumer QHP, FRCP Dr R E K Russell PhD, FRCP MrA Simmons Dr C Wedderbum {Resigned 1 December 2021) (Appointed 12 Juty 2022) ThE BOURNEMOUTH CHEST DISEASES CHARrrABLE TRUST TRU8TEE3' REPORT (cotrmNuEDI 8MI Tru8t• rA a THE BOURNEMOUTH CHEST DISEASES CHARITABLE TRUST INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF THE BOURNEMOUTH CHEST DISEASES CHARITABLE TRUST I report on the financial ststoments of the charity for the year ended 5 April 2022, Ithich are set out on pages 5 to 13. Respectlve responslblllties of trust8•3 and examlner The charty's trustees are responsible for the preparation of the finanaal slatèmenls. The charity's trustees consider that an audit is not required for this year under section 144{21 of the Charities Act 2011 Ilhe 2011 Acti and that an independent examination is needed. 11 is my responsibility lo.. examine the financial statements under section 145 of the 2011 Act- (ill lo follow the procedures laid down in the general Directions given by the Charrty Commission under section 14515llbl of the 2011 Act., and {iii) lo slate whether particular matters have come to my attenti¢y). Basls of independent examineys report My examination was carried out in accordance wlh the general Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the financial slalements presented with those records. It also incjudes consideration of any unusual items or disd05ures in the financial slalements, and seeking explanations from you as trustees conceming any such matters. The procedures undertaken do not provide all the ewdenee that would be required in an audtt and consequently no opinion is given as to whether the financial stslemenls present a 'tnJe and fair and the report is limited lo those matters sel out in the next stslement. Indopendent gxamlnerfs statement Your attention is drawn lo the fact that the charty h8s p￿pared financi81 statements in accordance with Accounting 8nd reporting by Charities ￿paring their accounts in accordance wth the Financial Reptyting Standard applicable in the UK and Republic of Ireland IFRS 102) in preference lo the Accounting and Reporting by Charities.. Statement of Recommended PTacb"ce issued on 1 April 2005 which is referred lo in the extant regulations bul has now been withdrawn. l understand that this has been done in order for the financial stslemenls to provide a Irue and fair view in at￿rdance with Generally Aceepled Accounting Practice effective for reporting perk)ds beginning on or after 1 January 2015. In connection wtth my exambnation. no other matter except that referred to in the prewous paragraph has come to my attention.. lal which gives me reasonable txuse lo believe that in any material respect the requirements.. {il to keep accountillg records in accordance with secaion 130 of the 2011 Act.. and lil) to prepare finanual stslements which accord wth the aC￿Unting records and comply with the accounting requiremen15 of the 2011 Act.. have not been mel or Ibl lo which, in my opinion, attention should be drawn in order to enabte a proper understanding of I rinancial stslemenls lo be reached. Mr Petèr Ba on FCCA ART Accountants Llrnlted Ground Floor 11 M8nvers Street Bath BA1 1JQ THE BOURNEMOUTH CHEST DISEASES CHARITABLE TRUST STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 5 APRIL 2022 Unrnstrlctsd Unrestrictgd funds fund$ 2022 2021 Notes Donations and lega￿e$ Investments 5.025 154,928 142,513 Totsl Income 159.953 142.513 Raising fund5 16,062 18,860 Charitable activities 50,793 36.797 Total expendlturg 66.855 55.657 Net gainsl{103sesl on investrnerrts 10 629.029 244.780 Net mov¢ment In funds 722,127 331.636 Fund balances at 6 April 2021 3,622,394 3,290,758 Fund balances at S April 2022 4.344,521 3,822,394 The ststement of finanual adivities indudes all gains and losses recognised in the year. AJI income and expenditure derive from continuing a￿l¥￿e$. THE BOURNEMOUTH CHEST DISEASES CHARITABLE TRUST BALANCE SHEEr ASAT5APRIL 2022 2022 20 Flx•d I￿•￿ Invé8tsntnl proF4rtt•s Inv•stm•rt* 1.200.(￿0 2.694.114 12 850,C•)O 2.426.572 Current ￿8•ts ¢4¥h 81 +k and kn h•nd Cr•dltor¥: amounts falllng dv• tAlthlh on• y• 3.894.114 3.278,572 481.089 387.489 13 130.882) (41.8471 Net cwr•nl 488•1• 450.407 345.822 Tot•1 •u•t• ¢vrT•n¢ Ihblllt 4.344.521 3,622.394 In¢txn• funds D•sign8led fundg General unr•¥tric*d fu￿$ 3.388.021 957.100 1865.294 4.244.521 3,622.394 4.344.521 3.822,394 2411112ozt Rev'd J H Slmmo Dr S M Malp88 ￿. 8th. &AO THE BOURNEMOUTH CHEST DISEASES CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2022 Accountlng polic50s Charlty Intomiatlon The Boumemouth Chest Diseases Charitsble Trust is an unirthrwratsd tvly whosè goveming document is a Trust Deed.. 1.1 A¢countlng convention The financial statements have been prepared in accordan￿ ￿tti the charity's Igoveming documenll, the Charities Act 2011, FRS 102 'The Financial Reporting Standard applicable in the UK and Republic ot Ireland. I'FRS 102.1 and the Charits"es SORP "Accounting and Reporting by Charities.. Slalemenl ol Recommended Practi￿ applicable io chariti.es preparing their accounts in accordance wlh the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 102)" leffeetive 1 January 2019}. The charity is a Public Benefit Entsty as defined by FRS 102. The financial statements have departed from the charib.es (Accounts and Reports) Regulations 2008 only lo the extent required lo provide a true and fair view. This departure has involved following the Statement of Recornmended Practice for charities applying FRS 102 rather than the version of the Stslemenl of Recommended Pr8Ctice bthi¢h is referred to in the Regulats"ons but which has since been withdrawn. The finanaal slalements are prepared in sterfillg, which is the functional currency of the charity. Monetary amounts in these finanaal statements are rounded to the nearest £. The financial statements have been prepared under the historical eosl convention, [modified lo include the revaluation of freehold propeffj.es and to include investment propertie$ and certain financial instrunents at fair valuel. The principal accounting polieies adopted are sel out below. 1.2 Golng concern Al the lime of approving the finanual statements. the trustees have a reasonable expectation that the charity has adequate resources to continue in operats.onal existence for the foreseeable future. Thus the I￿￿teeS ¢onth'nue to adopt the going concem basis of accounting in preparing the financial stalemenls. 1.3 Charltablg funds Unrestricted funds are available for use at the distretion of the trustees in furtherance of their charitable objectives. Restricted fvnds are subjerA lo specrfic condrtions by donors 8$ lo how they may be used. The purposes and uses of the restricted funds are set out in Ihe notes to the finanual statements. Endowment funds are subjecl 10 5peafic C4)ndtrtions by donors that the capital must be malntained by the charity. 1.4 Incomlng resources Income is recognised when the chanty is legally enlilled lo it after any perfonnance conditions have been mel, the amounts can be measured reliably. and it is probable that income will be received. Cash donations are ra¢ogni8ed on receipt. Other donats.ons are recognised once the charity has been notified of the donation, unless perfomiance conditions require deferral of the amount. Income tax lecoverable in lation to donats.ons ￿ceiVed under Gfft￿'d or deeds of covenant is recognised al the lime of the donation. Legacies are recognised on receipt or otherwise if the tharity has been notified of an impending dislribulion, the amount is known, and receipt is expected. If the amount is not known. the legacy is treated as a conb'ngenl asset. 1.5 Resources •xpended THE BOURNEMOUTH CHEST DISEASES CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2022 Accountlng pollcles {Contlnuedl Expenditure is recogni8ed On￿ there is a legal or constructive obligation to transfer economic benefit lo a third paty, it is probable that a tsansfer of economic beneffts wtll be required in settlement, and the amount of the obligation can be measured reliably. Expenditure is dassified by activty. The costs of each adrvtty are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable lo a single activity are allo¢ated direcuy to that activrty. Shared ￿$1S whieh ￿ntrIbute to more than one activity and 5UPPOrt costs which are not attributable to a single activity are apportioned be￿een those activities on a basis consistent with the use of resources. Central staff costs a￿ all￿ated on the basis of lime spent, and dgpreaalion ¢harges are allocated on the pOrt￿n of the asseys use. 1.6 Investment propertles Investment property, whith 15 propety held lo eam rentals andlor for capital appreciation. is initially recognised at cost, which includes the purchase CL)St and any dIre￿lY attribLrtable expenditure. Subsequently il is measured at fair value al the reporting end dale_ The Su￿luS or deficit on revaluation is recognised in profil or loss. 1.7 Cash and cash equlvalents Cash and cash equivalents indude cash in hand, deposits held al call wth banks. other short-lem) liquid investments with original matunties of three months or less, and bank overdrafts. Bank overdrafts are shown thin borrowngs in GU￿ent liabiliti.es. Basic financlal assets Basic financial assets, which include debtors and cash and bank balances, are inib'ally measured at transaction price including transaction costs and are subsequenuy carried at amortised cost using the effective interest Enethod unless the arrangement constitutes a financing transaction, where the transaction is measured al the present value of the future receipts discounted al a market rale of interest. Finanaal assets classified as receivable within one year are not amortised. Basle finaneiTal Ilabilitles Basic financial liabilities, induding creditors and bank loans are inthally recognised at transaction price unless the arrangement constitutes a finanung transa￿10￿, where the debt instrument is measuTeO at the present value of the future payments discounted at a market rale of interesL FinancAal liabilities classified as payable within one year are not amothsed_ Debt instruments are subsequenuy carried al amorb.sed cost, using the effective interest rale method. Trade creditors are obligation5 to pay for goods or services that have been aquired in the Ordin￿ course of operations from suppliers. Amounts payable are dassffied as current liabilities if payment 18 due wthin one year 01 less. It not, they are presented as norKurrent liabilthes. Trade ere(lilors are recognised initially al transaction price and subsequently measured al 8mortised cost using the effective interest method. Derecognition of financial Ilabilities Financial liabilities ar9 derecognIs￿ when the charity's contractual obligation5 expire or are di￿harged or ancelled. THE BOURNEMOUTH CHEST DISEASES CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2022 Crftlcal aGcountlng estlmates and Judgemènts In the application of the charity's accounting poli¢ies, the trustees are required lo make judgements, eslimales and assumptions about the carrying amount of assets and liabiliti.es that a￿ not readFly apparent from other sources. The estimates and associated assumptions are based on historieal expgrience and other factus that are considered to be relevant. Actual results may differ from these estimates. The eslimales and undertying assumptrons are reviewed on an ongoing basis. Revisions lo accounting estimates are recognised in the period in which the estimate is revise