CROYDON HEALTH SERVICES CHARITABLE FUND ANNUAL REPORT 2011/2012. Registered Charity No

Transcription

1 CROYDON HEALTH SERVICES CHARITABLE FUND ANNUAL REPORT 2011/2012 Registered Charity No

2 About the Fund Croydon Health Services Charitable Fund ( the Fund ) was created by declaration of the trust dated 19 February 1996, and is an NHS Umbrella Charity. This charity was created as part of the process of the rationalisation of NHS Charities initiated by the Charity Commission in The fund was previously known as the Mayday Healthcare Charitable Fund. There are four special purpose charities associated with the umbrella charity, which are: Croydon Health Services NHS Trust Croydon University Hospital General Fund Charity; Croydon Health Services NHS Trust - Research and Education Charity; Croydon Health Services NHS Trust - Staff and Patients Amenities Charity; Croydon Health Services NHS Trust Croydon Primary Care Trust. The Trustee of the above charities is Croydon Health Services NHS Trust (the Trust ). The Charitable Funds are administered by the Charitable Funds Committee, which is a subcommittee of the Board of the Trust. Details of the membership of the Board and of the Charitable Funds Committee are given on page 9 of this report. Aims and Organisation of the Fund. The aim of the Fund is to use the income and capital for charitable purposes relating to the National Health Service. Each of the special purpose charities represents a specific way of achieving this aim. These are as follows: 1. Croydon University Hospital General Fund Charity - contributes to projects mainly for the benefit of Croydon University Hospital; 2. Research and Education Charity - supports training and education initiatives in the Trust. It also supports clinical research projects carried out within the Trust and the dissemination of the useful results of those projects. All such research projects are subject to prior approval and monitoring by the Trust s Ethics Committee; 3. Staff and Patient Amenities Charity contributes to the provision of extra amenities for patients at Croydon University Hospital and to improve the working environment for staff at the Trust; 4. Croydon Primary Care Trust Charity - contributes to the provision of extra amenities for patients in the community and to improve the working environment for staff at the Primary Care Trust. The overall administration and stewardship of the funds is the responsibility of the Charitable Funds Committee. Page 2

3 Each special purpose charity is divided into a number of smaller charity funds according to the intentions of the donors of the money. Day to day decisions about the use of the money held in these funds are made by senior Trust and Primary Care Trust staff most closely associated with the area of benefit. For example, in the case of a ward fund the Trust staff would be the senior nurse and the associated business manager. The charity's annual report and accounts for the year ended 31 March 2012 have been prepared by the corporate trustee in accordance with the Charities Act 2011, the Charities (Accounts & Reports) Regulations 2008 and the Statement of Recommended Practice (SORP 2005). Structure, Governance and Management In its operation of the charitable funds, the corporate trustee has had regard to the Charity Commission's guidance on independence and established the Charitable Funds Committee to assist in maintaining independence. It does this by ensuring that the use of charitable funds is focused on the needs of NHS patients, their carers and families. The Charitable Funds Committee has devolved responsibility for the overall management of the charitable funds. The Committee is required to: Control, manage and monitor the use of the fund's resources for the public benefit, having regard for the guidance issued by the Charity Commission; Provide support, guidance and encouragement for all its income raising activities whilst managing and monitoring the receipt of all income; Ensure that 'best practice' is followed in the conduct of all its affairs fulfilling all of its legal responsibilities; Ensure that the Investment Policy approved by the Trust Board as corporate trustee is adhered to, and that performance is continually reviewed whilst being aware of ethical considerations; Keep the Trust Board fully informed on the activity, performance and risks of the charity. The corporate trustee fulfils its legal duty by ensuring that funds are spent in accordance with the objects of each fund. By designating funds, the trustee respects the wishes of our generous donors to benefit patient care and advance the good health and welfare of patients, their carers and the staff who look after them. Page 3

4 A Review of our Finances, Achievements and Performance Analysis of Performance Trends The chart below shows a snapshot of the levels of income, expenditure, cash balances held and overall fund value over the past 5 years. The variances year on year reflect the fluctuating nature of income donations received by the Fund. Page 4

5 Sources of income to the Fund for 2011/12 The income of the Fund for the year is analysed as follows: Donations - 42% ( 172k); Fund generating activities (eg courses) 28% ( 113k); Legacies - 24% ( 100k); Investment income 6% ( 22k). Income has increased from 288k in 2010/11 to 407k in the year being reported upon. The majority of this income is made up of donations. In the present economy climate where donations have been hit aross the whole of the charitable sector, this is an outstanding achievement and we are very grateful to all the individual donors for the contribution that they make. The Trustees wish to take this opportunity to thank all the Fund s supporters on behalf of all of the patients and staff who have benefited from their generosity. Page 5

6 Types of expenditure within the Fund for 2011/12 An analysis of the total charitable expenditure for the financial year is as follows: Medical and other equipment 62k (17%); Premises and Buildings 37k (10%); Research and Education 105k (29%); Staff Welfare and Amenities 34k (10%); Patients Welfare & Amenities 4k (1%); Support Costs 32k (9%); Fundraising activities 73k (20%); Governance Costs (the costs of internal and external audits) 5k (1%); Investment Management Fees 5k (1%). Of the total expenditure of 357k, 77% was spent directly on charitable activities, 22% spent on total resources expended on generating funds and 1% on governance costs. Page 6

7 Staff Gym Fund During 2011/12, the Friends of Croydon have generously donated 60k to carry out a major refurbishment and purchase of new equipment: fitness machines, a brand new multi-gym, punch bag, step boxes, dumbbells and rowing machines. Child Birth Fund Through conducting courses held by the Trust s consultants, the fund generated an income of 75k. Income generated was used both for the delivery of patient care and training courses. Cardiac Department Fund During 2011/12, the fund generated an income of 28k from donations, and 6k was raised from the Summer Ball event. Income generated was used for research and training. Investments As at the 31 March 2012, 867k of the assets of the Charitable Fund (62% of total net assets) constituted the investment portfolio, which is managed by our investment adviser Investec Wealth & Investment Limited, a member of the London Stock Exchange and regulated by the Financial Services Authority (FSA). During the 2011/12 financial year, the funds and cash held at the bank and in short term investments generated dividends and interest income of 22k. This is in line with the Trust s Investment Policy, which stipulates that the structure of our investment portfolio is such that circa 20k income per annum is generated. By the end of the financial year, there was a net loss on the revaluation of the Fund s investment assets of 11k. Policies Reserves Policy It is the policy of the charity to maintain unrestricted funds, which are the free reserves of the charity, at a level which equates to approximately 12 months unrestricted expenditure. These are sufficient funds to cover management, administration and support costs and to respond to emergency applications for grants which arise from time to time. It is the policy not to accumulate general reserves above this level but to spend donations promptly on the purpose for which they were received; however, funds could be accumulated for very specific purposes. Signatories are required to draw up detailed spending plans for the financial year which demonstrate the need to retain reserves. Page 7

8 Investment Policy The investment portfolio is managed by a firm of investment advisers which is a member of the London Stock Exchange and regulated by the FSA. The Charitable Funds Committee has delegated the management of the investment portfolio on a discretionary basis under the powers provided to them in the National Health Service Trusts (Membership and Procedure) Regulation The portfolio is managed in accordance with the provisions of the Trustees Investment Act The policy is set within an overall plan that the investment portfolio is to be sufficiently liquid to allow the charity s reserve policy to be achieved. Investments are to be low risk. Investments in companies promoting products or services detrimental to health are to be excluded. The Charitable Funds Committee reviews the charity s reserves and investment policies annually. Statement of risk The risks to which the charity is exposed have been identified and considered. Internal audit reviewed the systems established to mitigate those risks, and based on the testing carried out by them, reasonable assurance can be given that the controls in place over the operation of the charitable funds function are adequate and effective. Audit testing did not reveal any significant or material financial or other losses; however, it highlighted some weaknesses, and made a number of recommendations, which have been addressed. Future Plans The Charitable Fund will continue to support the work of Croydon Health Services NHS Trust with the purchase of equipment, education and the funding of staff and patient amenities. The Committee will continue to focus on maximise the way that funds can be used by ensuring that they are as widely accessible as possible and to encourage spending of the funds in accordance with the objectives of the fund. Page 8

9 CROYDON HEALTH SERVICES CHARITABLE FUND TRUSTEE AND CHARITABLE FUNDS COMMITTEE The Corporate Trustee is Croydon Health Services NHS Trust (the Trust ). Directors of the Trust and Members of the Charitable Funds Committee during the year ended 31 March 2012 were as follows: Name Position Nick Hulme Chief Executive (until 28 February 2012) Anthony Leonard Director of Finance & Information and Deputy Chief Executive and Acting Chief Executive Chrisha Alagaratnam Director of Foundation Trust Project and Acting Director of Finance (until 9 May 2011) Richard Parker Director of Operations (Acute) Sharon Jones Director of Operations (Community) Michael Burden Interim Director of Human Resources & Organisation Development (from 3 October 2011) Annette Gately Director of Human Resources & Organisation Development (until 9 Oct 2011) Debbie Eyitayo Acting Director of Human Resources & Organisation Development (from 1 April 2011 to 28th April 2011) Mike Ralph Director of Estates & Facilities Dominic Conlin Director of Strategy and Commercial Development (from 1 January 2012) Sally Smith Director of Strategy and Business Development (until 5 June 2011) Zoe Packman Director of Nursing, Quality and AHPs (from 19 September 2011) Cynthia Davis Acting Director of Nursing, Quality and AHPs (1 April 2011 to 18 September 2011) Tony Newman-Sanders Medical Director (from 1 September 2011) Gavin Marsh Medical Director (until 31 August 2011) Lynette Wells Director of Governance & Trust Secretary (until 12 February 2012) Brian Phillpott Chairman Constance Hall Non-Executive Director (Vice Chair) Karen Jones Non -Executive Director (Chair of Charitable Funds Committee) Jeevan Gunaratnam Non -Executive Director Nero Ughwujabo Non -Executive Director Carol Bernstein Non-Executive Director The Chairman of the Trust is responsible for appointing new trustees to the Charity Committee. Page 9

10 PROFESSIONAL ADVISORS Bankers Government Banking Service (GBS) Southern House Wellesley Grove Croydon CR9 1WW External Auditors Audit Commission Bridge House 1 Walnut Tree Close GUILDFORD GU1 4UA Investment Manager Investec Wealth & Investment Limited 2 Gresham Street London EC2V 7QN Further Information If you require further information about the work and operation of the Fund, please contact: Charity Accountant Directorate of Finance and Information, Finance Department, 2 nd Floor, Nightingale House, Croydon Health Services NHS Trust, London Road, Croydon. CR7 7YE By Order of the Trustees: Michael Parker Chairman Date: 30 th July 2012 John Goulston Interim Chief Executive Date: 30 th July 2012 Page 10