NHS GRAMPIAN Minute of the Endowment Committee Meeting Held on 1 September 2015 in Summerfield House

Transcription

1 NHS GRAMPIAN Minute of the Endowment Committee Meeting Held on 1 September 2015 in Summerfield House Present: Mr Raymond Bisset (Chair), Non-Executive Board Member Mr Alan Gray, Director of Finance Prof Mike Greaves, Non-Executive Board Member Ms Sharon Duncan, Employee Director In Attendance: Ms Carol Clark, Senior Portfolio Manager, Standard Life (Item 6.1) Mrs Laura Gray, Director of Corporate Communications/Board Secretary Mr Garry Kidd, Assistant Director of Finance Mrs Sheena Lonchay, Operational Manager for NHSG Miss Louise McKessock, Interim ARP Deputy Director (Item 3) Mr Graeme Smith, Director of Modernisation (Item 3) Ms Else Smaaskjaer, Administrator Mr Stuart Walker, Financial Accountant Ms Marion Beaton, Minuting Secretary Item Subject Action 1. Apologies Cllr Stewart Cree, Non-Executive Board Member 2. Declaration of Interest Mrs Laura Gray Item Acute Reconfiguration Project Mr Smith and Miss McKessock gave an update on the Acute Reconfiguration Project. Mr Smith acknowledged the resource the Endowment Committee had allocated to this project. Miss McKessock advised that Section 1 was almost complete: Level 2 (Chaplaincy, Anaesthetic Department and Ward 203 Ophthalmology) of the backlog maintenance programme is complete and Level 4 (Wards 207 and 208) was expected to be completed by the end of October. Work on Section 2, the Pink Zone, is to start on 20 October with an expected completion date in May This will include Level 1 (Women s Day Clinic, Dining Room Ward 202 Urology Day Case, Theatres, staff changing/locker area, ITU Visitors Waiting Area) and will necessitate the temporary closure of the RACH

2 Link Bridge. Section 2 also includes Level 5 (Ward 209/210 Urology/UCAN, Ward 211 ENT/Maxfax and SSU). To enable the works on Levels 1 and 3, the two old A & E Theatres are currently being brought back into service (now known as Level 0 Theatre Suite). Work will be completed by the end of September and these two theatres will be a stand-alone suite with reception, 5 bed/trolley recovery area and a discharge lounge. The Urology Day Unit and Plastic Surgery will use this facility. Once Section 3 is completed, the Theatre Suite will be available as decant/turnaround space for main theatres during upgrading work. Section 3 is planned to commence in April 2016 with completion in November This will include Levels 3, 6 and 7 (Stroke, Neurosciences, Minor Theatre, Trauma Orthopaedics, Cardiothoracic and HDU). Level 7 will be reconfigured for the new Integrated Surgical HDU. When Section 3 is complete, General Surgery will move from the Yellow Zone to Level 4 Pink Zone. This will enable work to commence in the Yellow Zone Ambulatory Care Centre. Section 4, Levels -1 and 0 (Medical Records, Pharmacy, Loading Bay, Support Services) is planned to start, at the earliest in November Miss McKessock advised that feedback from patients and staff in Section 1 had been very positive, particularly around the dementia-friendly features. It was noted that Neurosciences had expressed an interest in submitting an application for Endowment funding for work in addition to backlog maintenance and to expand its service. Mr Smith and Miss McKessock agreed to feedback to Mrs Lonchay as appropriate. LMcK It was noted that the move by the Rheumatology Department to Ashgrove House was a permanent arrangement. Ms Duncan noted her concerns about access and traffic. Mr Smith advised the Committee that fundraising would be part of the Baird Family Hospital and the Anchor Centre projects, as well as the Cardiac Centre. The latter is to be a fully fundraised project, and pump priming may be required for fundraising for the Baird Family Hospital and the Anchor Centre. Mr Smith suggested that the Endowments Committee may wish to have a tour of the refurbished areas and that this could be arranged after the November meeting. SL

3 4. Minute of meeting held on 8 June 2015 The minute of the above meeting was approved by the Committee. 5. Matters arising from meeting held on 8 June Action Log 8 June 2015 The Committee reviewed the action log from the previous meeting and highlighted the following items: Item 9.8 GHAT ArtRoom Project The Committee was advised that negotiations were taking place on the SLA and an application may be submitted to the November meeting.. 6. Investments AG 6.1 Update on Investment Performance- Standard Life Wealth Ms Carol Clark introduced the report on the performance of the investment portfolio. The value of the portfolio as at 30 June 2015 was 42,626,928 and the target income was 1.25 million. However, on 31 August 2015, the value had dropped to 41.6m. Ms Clark reported that global growth was determined by activity in China, the US and Europe and that China s growth had slowed and this had had a negative effect on equities. However, the US was stable, growth was expected in the Eurozone and while China s growth had slowed, it was still a growing economy. The return in the last three months period has been negative; the benchmark yield was -2.7% and the portfolio yielded -3.6%. Currencies were a factor in some yields; US stocks which yielded 7% resulted in a 15% yield when converted to Sterling, while 32% yield from Japanese stocks was reduced to 19% after conversion to Sterling. There is an expectation that the US will increase interest rates later this year, something which has not happened since The expectation is that the global economy will continue to grow. Companies are continuing to pay dividends Ms Clark agreed to keep the Endowment Fund abreast of any downward trend; in any worst case scenario, the Fund Stewards

4 would need to be made aware of the impact of their funds. The Committee confirmed that the current investment strategy be continued. Mr Kidd advised that Ms Clark s team has agreed to give early warning if there are significant changes in the markets over consecutive days so the Committee can be advised accordingly. Mr Kidd advised that the Committee would be looking to draw down 2 million in May for the Key Worker Housing Project. The Chair thanked Ms Clark for her work. The Committee noted the report and agreed to take no action at present regarding the fall in the portfolio value; take 2m out of the portfolio in May 2016 to invest in key worker housing, timescale to be confirmed at the February meeting. 6.2 Update on Key Worker Housing Mrs Lonchay advised that the proposed development had obtained conditional planning consent on 20 August 2015, one of the conditions being that affordable housing arrangements had to be in place within one year. The Central Legal Office (CLO) had been contacted regarding the potential purchase of 15 units. Mr Gareth Evans, NHSG s Property Transactions Manager will be the main contact and instruct the Central Legal Office. Mrs Lonchay and Mr Gareth Evans had met with Langstane Housing for an exploratory discussion around a Registered Social Landlord acting as managing agent for the properties. It was agreed that a letter should be sent to a range of RSLs inviting expressions of interest. SL 7. Operational Manager s Report The Operational Manger s Report was tabled for information. Mrs Lonchay confirmed that she had visited the six Area Managers in Aberdeenshire, and the two Operational Managers in Moray to promote the potential of Endowment funding for appropriate projects. Mrs Lonchay advised that progress was being made on a separate website for the Endowment Funds, using the branding being developed by Corporate Graphics. It is proposed that the website would include a list of funds and a facility to donate online.

5 Mr Kidd advised that Mrs Lonchay was now supporting the National Endowments Committee. This Committee will meet again in November and has been very beneficial for sharing information. Prof Greaves welcomed the speedy processing of Endowment funding for the Physicians Associates programme. The Chair welcomed this report and the Committee noted the content. 8. GAPF Endowment Funding A paper was tabled on all approved applications to the GAPF endowment fund sub-group. 9. Donations Donations greater than 1,000 received from 1 January to 31 July 2015 A paper was tabled on all donations and legacies greater than 1,000 that were received from 1 January to 31 July Funding Requests 10.1 Expenditure requests over 2k approved from 1 June to 31 July 2015 A paper was tabled regarding authorisation of items approved for over 2, Mortuary update Mrs Gray gave an update on the progress of the Mortuary at ARI. The University has now given approval as the site is predominately on University land. The Endowment Committee previously approved 125,000 but as this was some time ago, work will have to be re-costed. LG 10.3 UCAN and Robotic Surgery update The Robotic surgery system has been installed and the first operations have taken place Foresterhill Mosque update Mrs Gray gave an update on the Foresterhill Mosque. Mrs Gray and the working group have met with representatives of the Mosque. Amendments to the layout have been agreed and the

6 project will required to be re-costed. The Mosque will be an extension on the site of the existing mosque. LG 10.5 Research Funding Request from Research & Development A paper was tabled from Research and Development for funding for 25 research projects. The Committee agreed funding of 286, and it was suggested that a paper should go to the Board to initiate discussion on NHSG s research strategy. AG 10.6 Catering Service A paper was tabled on an application for funding of 370,122 to upgrade patient/staff dining areas at Aberdeen Royal Infirmary, Royal Cornhill Hospital, Dr Gray s Hospital and Woodend Hospital. There was discussion about the way in which the Endowment Fund could assist with this project, given that the Catering Service was an income generating activity. It was also suggested that the proposals should be taken to the Asset Management Group and its view should inform any decision about endowment funding. The Committee agreed Endowment funding in principle, on an investment basis, and that a further paper would come to the November meeting with appropriate options Relatives Accommodation at ARI A paper was tabled on an application to convert a bed store at ITU into three bedrooms for relatives and to relocate the bed store to the redundant area of the staff locker room, at a total cost of 284,000. The Committee agreed to funding of 180,000 from the General Endowment Fund and, in principle, funding of 104,000 from the General Endowment Fund to relocate the bed store once the costs had been clarified. Responsibility for this was delegated to the Chair and Mr Gray Immunology Service A paper was tabled on a request for funding to enhance facilities being made available to the Immunology Service at the old Infection Unit. This work could be done at the same time as the refurbishment project already agreed for the Weight Management Service, also at the old Infection Unit.

7 The Committee agreed to funding of 168,000 from the General Endowment Fund Peterhead Hospital Community Maternity Unit A paper was tabled on a funding request for the refurbishment and reconfiguration of the Maternity Unit at Peterhead Hospital. The Asset Management Group approved Option 3 which included backlog maintenance work as well as enhancement to the Maternity Unit at a cost of around 900k. The AMG had agreed that backlog maintenance work would include replacement of the windows on the first floor of the maternity ward and fire precaution works at a cost of around 500k. It was proposed that the remaining 400k came from the General Endowment Fund. The Fund Steward of the Peterhead Community Hospital Fund had offered 240k. SL The Committee agreed a contribution of 400k, 240k from NER11838 Peterhead Community Hospital Fund and 160k from NEUR2018 General Endowment Fund Paediatric Research Nurse A paper was tabled for a Paediatric Oncology Nurse. This would be for a period of three years at a cost of 46,439 per annum ( 139,317 total). It was noted that projects with recurring costs were not normally considered for Endowment funding, the level of donations to the research funds for childhood cancers were sufficient to support this post. Concern was expressed about the role of the Research Nurse and the Committee requested further information. The Committee agreed that Prof Greaves and Mrs Lonchay would meet Dr Hugh Bishop to seek clarification on this. It was confirmed that R & D approval is required for any research application prior to coming to Committee. MG/SL Therapeutic Garden Mrs Gray left the room for this discussion. A paper was tabled from the Fund Steward of the Cystic Fibrosis Travel and Equipment Fund to make a donation of 5,000 to the Therapeutic Roof Garden. The Committee agreed that the CF Travel and Equipment Fund could make a donation of 5k towards the Therapeutic Garden on the condition that it went towards a tangible piece of equipment, eg seating.

8 11. Financial Report A paper was tabled on the Endowments Financial Report as at 30 June Mr Kidd advised that the portfolio value had dropped but was starting to climb again. The situation had been discussed with SLW and it had been agreed that a drop of 250,000 in one day or a drop over three consecutive days should be reported to Mr Kidd and the Endowments Finance team.. There was discussion about maintaining a buffer between book and revaluation values, which currently stands at around 5m. 2.8m is already committed from the General Endowment Fund, plus this meeting s approvals, and there is working capital of 2.2m. SLW has been given notice that 2m will be required from the portfolio in around May 2016, for payment of the key worker housing units. Mr Kidd will bring a report to the next meeting on forecast expenditure and trigger points in the portfolio value which would initiate further action. The Committee noted the current position of the Endowment Fund s portfolio. 12. Review of Risk Control Plan The Endowments Committee Risk Register was tabled. The Committee agreed that number 2, poor performance by Fund s investment managers should be changed to red. 13. Update to NHSG Board It was agreed that the following information should go the next Board Meeting. AG The recent drop in stock market values had been discussed with Standard Life Wealth and the Finance team are monitoring the value of the portfolio. Income is not affected. Details of applications which were approved. 14 AOCB There was no other business. 15 Date of next meeting Tuesday at in the Seminar Room at Summerfield House.