SUFFOLK MENTAL HEALTH PARTNERSHIP NHS TRUST CHARITABLE FUND AND OTHER RELATED CHARITIES

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1 Date: 19 th December 2013 Item: vi L3 SUFFOLK MENTAL HEALTH PARTNERSHIP NHS TRUST CHARITABLE FUND AND OTHER RELATED CHARITIES ANNUAL REPORT AND ACCOUNTS YEAR ENDED 31 MARCH 2013 Corporate Trustee: Norfolk and Suffolk NHS Foundation Trust Registered address: Finance Department Hellesdon Hospital Drayton High Road Norwich NR6 5BE Registered Charity Number: Created by the governing document, the Trust Deed, dated 1 st April 2004

2 Contents Page Corporate Trustee and Advisers 2 4 Report of the Corporate Trustee 5 10 Statement of Responsibilities of the Corporate Trustee Report of the Independent Auditors Statement of Financial Activities 15 Balance Sheet 16 Notes forming part of the financial statements 17 21

3 Corporate Trustee and Advisers Corporate Trustee Norfolk and Suffolk NHS Foundation Trust is the sole corporate trustee, with members of the Trust s Board acting as ex-officio trustees of the Charitable Funds. The board of directors of Norfolk and Suffolk NHS Foundation Trust who served during the financial year were as follows: - Chairman Maggie Wheeler (left 31 st March 2013) Gary Page (from 3 rd April 2013) Non Executive Directors: Barry Capon Graham Creelman John Brierley Stuart Smith Brian Parrott Peter Jeffreys Gary Page Executive Directors: Aidan Thomas - Chief Executive (left June 2013) Roz Brooks - Director of Nursing Andrew Hopkins - Director of Finance and Deputy Chief Executive (Acting Chief Executive from July 2013) Hadrian Ball - Medical Director Kathy Chapman - Director of Operations N&W Debbie White - Director of Operations Suffolk Leigh Fleming - Commercial Development Director All Non-Executive and Executive Directors have a generic induction within six weeks of joining the Trust, followed by a one to one session with the Chairman, Chief Executive, Director of Finance, Director of Nursing and Medical Director. They also receive separate training from the Appointments Commission. The corporate trustee has delegated, within written terms of reference, day to day management of the funds to the Charitable Funds Committee. The Committee was formed on 13 September 2002 and operates with the following membership terms of reference: The Committee will consist of one non-executive director and one executive director of the Norfolk and Suffolk NHS Foundation Trust (NSFT) Board, NHS Ipswich and East Suffolk CCG, NHS West Suffolk CCG and NHS Great Yarmouth and Waveney CCGs, or their delegated representatives, who should be elected by the PCT Boards and their successor bodies. All committee members can delegate a representative. 2

4 Nominated Representatives: Norfolk and Suffolk NHS Foundation Trust Graham Creelman, Non-Executive Director Andrew Hopkins, Director of Finance NHS Ipswich, East and West Suffolk CCG (Formerly Suffolk PCT) Julian Herbert, Director of Finance Alastair McWhirter, Chair of NHS Ipswich East and West Suffolk CCG NHS Great Yarmouth and Waveney CCG (Formerly Great Yarmouth and Waveney PCT) Zoe Pietrzak, Chief Finance Officer John Stammers, Chair of NHS Great Yarmouth and Waveney CCG A non-executive Director of NSFT shall serve as chairman. The chairman will be elected on an annual basis. No business shall be transacted at a meeting of the Charitable Funds Committee unless at least three representatives are present 3

5 Registered Address The Registered Office of the Charitable Fund is: Norfolk and Suffolk NHS Foundation Trust Finance Department Hellesdon Hospital Drayton High Road Norwich NR6 5BE Telephone Principal Professional Advisers Bankers: Barclays Bank plc 1 Princes Street Ipswich Suffolk IP1 1PB Auditor: KPMG LLP 6 Lower Brook Street Ipswich IP4 1AP Investment Fund Bankers: Barclays Wealth Charity Investments Team Level 15 1 Churchill Place London E14 5HP Royal Bank of Scotland PO Box 1000 Edinburgh EH12 1HQ The Co-operative Bank London Corporate Centre 4 th Floor 9 Prescot Street London E1 8AZ 4

6 Report of the Corporate Trustee The corporate trustee submits its annual report on the affairs of the charity, together with the financial statements and independent auditors report for the year ended 31st March The financial statements have been prepared in accordance with the accounting policies set out on page 17, and comply with the Charitable Fund s trust deed, current statutory requirements and the Statement of Recommended Practice revised in 2005: Accounting and Reporting by Charities. Charitable Objectives The charity is an NHS umbrella charity registered with the Charity Commissioners for England and Wales. The objects of the umbrella charity are for the trustee to apply the income, and at their discretion, so far as may be permissible, the capital for any charitable purpose or purposes relating to the services provided by: Norfolk and Suffolk NHS Foundation Trust Suffolk PCT and their successor body the Waveney element of Great Yarmouth and Waveney PCT and their successor body The charitable funds are used to meet the objects of the original donations or bequests, so far as is reasonably practicable. Where there are no specific objects, the funds are used by the charity for such purposes relating to services provided by them under the National Health Service Act The Charity meets the legal requirement of applying the funds for public benefit by ensuring that they are spent on the Trust s patients and the staff who care for them. Specific Restrictions The charitable funds are managed in accordance with the conditions set out in the Trustee Investments Act 1961 and the governing document. All the charity s funds are regarded as designated funds for general purposes to particular NHS hospitals or locations and are accounted for in accordance with the latest Guidance for NHS Charities from the Charity Commission. 67 funds are accounted for as unrestricted funds and one remaining fund is accounted for as a restricted fund, namely the Whitwell Endowment fund. The interest received from the Whitwell Endowment Fund, which is held in perpetuity as a restricted fund, is transferred to the St Clements Hospital unrestricted fund and can be used for charitable purposes for the benefit of mental health. The terms of the Whitwell legacy are to keep the capital intact and to use the interest earned for the benefit of mental health patients. 5

7 Structure, Governance and Management The Charitable Funds Committee, a sub-committee of the corporate trustee, makes recommendations to the corporate trustee on: Fund governance Investment policies Fundraising Expenditure policies and procedures, and Reporting arrangements Designated Directors and Managers manage the funds within the umbrella charity on behalf of the corporate trustee. The funds are overseen by fund holders who can make recommendations on how to spend the money within their area. These recommendations are generally accepted, provided they meet a charitable principle and also correspond to the criteria of the purpose of the fund. The accounting records and day to day administration of the funds are dealt with by the Assistant Financial Accountant, Priory, P.O. Box 170, Foxhall Road, Ipswich IP3 8LS. The registered office of the charitable fund is: Norfolk and Suffolk NHS Foundation Trust, Finance Department, Hellesdon Hospital, Drayton High Road, Norwich, NR6 5BE Principal Activities Activities and achievements for public benefit During the year the funds continued to support a wide range of charitable and health related activities benefiting both patients and staff. In general they are used to purchase additional equipment and services that the NHS is unable to provide from other sources. There are three principal areas of activity within the charity: Contributions to the NHS where funds are received and expended for the benefit of the NHS There was no expenditure under this category during the year, the main expenditure having been used for patients welfare and amenities. 6

8 Patients welfare and amenities where funds are received and expended for the benefit of patients. Total expenditure for the year under this activity amounted to 72,000 of which the main expenditure is summarised below. A total of 14,000 was spent on furniture including dining tables, high back chairs, recliner chairs and cushions for patient use at Southwold Hospital. Another 2,000 was spent on an industrial washing machine for laundering patients clothing at Newmarket Hospital. A total of 4,000 was spent on specialist examination chairs and another 6,000 was spent on nursing beds for patient use at Newmarket Hospital. 2,000 was spent on a rise and recliner chair for patient use at Aldeburgh Hospital and another 1,000 was spent on curtains and counterpanes to improve patient areas at Aldeburgh Hospital. 1,000 was spent on pressure relieving cushions and another 1,000 was spent on low beds for patient use at Aldeburgh Hospital. 1,500 was spent on premier active pumps and cushions for patient relief at Felixstowe Hospital. 1,500 was spent on providing patients at Aldeburgh Hospital with newspapers and periodicals. Another 2,500 was spent on music sessions for the benefit of patients in St Clements Hospital. 2,700 was spent on Christmas festivities for hospital inpatients, residents in group homes and service users. The remaining expenditure was given for smaller requests for the benefit of patients to enhance the service provided. Staff welfare and amenities where funds are received and expended for the benefit of staff. Expenditure for the year under this activity amounted to 17,000 of which the main expenditure is listed below. Over 8,000 was spent on NHS Staff specialist training courses and conferences to develop skills and provide further education and knowledge in the treatment of patients. 1,800 was spent on lockable medical trolleys and 579 was spent on medical books and subscriptions for staff to be able to access sources of information. A further 1,000 was given as contributions to staff retirement functions for appreciation of long service. Donations from League of Friends The League of Friends continues to be very supportive towards our charity and have given substantial donations to fund medical and other vital equipment needed by Suffolk PCT and Great Yarmouth and Waveney PCT. 7

9 Aldeburgh League of Friends has donated more than 3,000 part of which was used to purchase a rise and recliner chair, a re-turn transfer aid and transfer belts to help patients sitting and standing. Felixstowe Hospital League of Friends has donated more than 2,900, part of which was used to purchase 2 ergokneelers for the comfort of nursing staff who undertake low level tasks, and six premier active pumps with cushions for patient use at Felixstowe Hospital. Patrick Stead Hospital League of Friends has donated more than 1,000, part of which has been used to purchase wipe clean duvets and quilt covers for patient use, and an exercise cycle for patients undergoing physiotherapy. Southwold Hospital League of Friends donated more than 15,000 part of which has funded dining tables, high backed chairs, armchairs, over bed tables and six mattress cushions with pumps, all for patient use at Southwold Hospital. Future Plans The trustee does not expect any significant changes in the objectives of the charity in the forthcoming year, and will continue to receive and expend funds for the benefit of the NHS, the relief of patients, and to support staff and service development where other sources are unavailable. Application has been made to the Charity Commission to merge Suffolk Mental Health Partnership NHS Trust Charitable Fund with Norfolk and Waveney Mental Health NHS Foundation Trust Charitable Fund which will enable us to apply the funds to benefit patients in both the Norfolk and Suffolk regions. The Charitable Fund Committee will continue to ensure that investments are deposited in several banks on a fixed term to spread the risk and to realise the best possible interest rate. Reserves Policy The charity s reserves have increased by 16,000 in value this year and currently stand at 1,618,000. The charity has been mindful of the need to reduce the level of reserves held and the trustee will continue to review the balances held in the designated funds and encourage an appropriate level of expenditure. There are no target reserves as it is not the policy of the charitable fund to hold reserves. The fund holders are encouraged to spend monies on good causes. The charitable fund committee monitor any requests over 10,000 thereby anticipating the need to withdraw any investments that may be needed to fund approved grants. 8

10 Grant Making Policy The charity awards grants on an informal basis and in accordance with the objectives of the individual funds. The needs of the relevant hospital departments are considered and grants are awarded in the circumstances where the NHS would not normally provide the equipment or service, and where there is a benefit to patients in the provision of the equipment or service. The charity also occasionally accepts grants from other charities for the benefit of patients and transmits the donation on their behalf ensuring that the request of the donor is honoured. Financial Review As shown in the following statement of financial activities, the total value of funds held by the charity increased from 1,602,000 to 1,618,000 during the year. A total of 97,000 was given to the charity in the form of donations and legacies and our investment income slightly decreased from last year to 31,000. Expenditure has decreased from last year by 135,000 to 117,000 which has resulted in an increase in the value of funds held at year end. The charity continues to rely on donations and legacies and investment income as the main source of income. The corporate trustee takes the view that charitable funds donated to the charity are to be used, rather than saved, in fulfilment of the wishes of donors and the objectives of the charity. The charity encourages fund-raising by volunteers but does not depend on donations in kind to achieve its objects. 9

11 Investment Policy It is the policy of the charity to ensure: effective and secure investment of charitable monies, maximisation of investment income, and maintenance of appropriate working cash balances for day to day transactions. During the financial year, fund balances were invested in high interest earning commercial bank accounts, which closely followed movements in the bank rate as anticipated. The Whitwell Capital Fund was deposited in the Royal Bank of Scotland for a 12 month fixed term. The remaining two investments from the general fund continued to be held with the Co-op Bank and Barclays Wealth. Income generated from the investments with three banks amounted to 31,000 at year end. The external audit fee amounted to 7,000 this year and was financed from the investment income. The surplus was apportioned across the funds on the basis of average fund balance. Risk Management Major risks to which the charity is exposed have been identified and procedures have been put in place to mitigate those risks. All funds are checked and an assessment is undertaken before a payment is made to ensure that there is money available to meet expenditure. Procedures are in place to safeguard the receipting of donations and the banking of cash and cheques. Income and expenditure is monitored on a quarterly basis by the Charitable Funds Committee. The Trustees have taken a cautious approach to investment by ensuring that assets are invested in low risk ethical funds and kept as cash holdings. However, cash holdings that are set aside for day to day transactions are kept to a minimum. Changes in investment have been instigated by the Charitable Fund Committee, resulting in deposits of funds in three different financial institutions to spread the risk. However, the current downturn in the economy has had an adverse effect on interest rates resulting in a significant reduction in expected investment income over the next financial year. The Charitable funds Committee will continue to review the investments and endeavour to seek the best possible return whilst ensuring a low level of risk to safeguard the funds. 10

12 Statement of Trustees' responsibilities in respect of the Trustees' annual report and the financial statements Under the charity law, the trustees are responsible for preparing the Trustees' Annual Report and the financial statements in accordance with applicable law and regulations. The financial statements are required by law to give a true and fair view of the state of affairs of the charity and of the excess of income over expenditure for that period. In preparing these financial statements, generally accepted accounting practice entails that the trustees: select suitable accounting policies and then apply them consistently; make judgements and estimates that are reasonable and prudent; state whether applicable UK Accounting Standards and the Statement of Recommended Practice have been followed, subject to any material departures disclosed and explained in the financial statements; state whether the financial statements comply with the trust deed and rules, subject to any material departures disclosed and explained in the financial statements; and prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business. The trustees are required to act in accordance with the trust deed and the rules of the charity, within the framework of trust law. They are responsible for keeping proper accounting records, sufficient to disclose at any time, with reasonable accuracy, the financial position of the charity at that time, and to enable the trustees to ensure that, where any statements of accounts are prepared by them under section 132(1) of the Charities Act 2011, those statements of accounts comply with the requirements of regulations under that provision. They have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the charity and to prevent and detect fraud and other irregularities. Disclosure of Information to auditor The Officers of the Trustee who held office at the date of approval of this Trustee s report confirm that, so far as they are each aware, there is no relevant audit information of which the Charitable Fund s auditor is unaware; and each officer has taken all the steps that he ought to have taken as an Officer of the Trustee to make himself aware of any relevant audit information and to establish that the Charitable Fund s auditors are aware of that information. 11

13 Thank You On behalf of the staff and patients who have benefited from the equipment and services due to the donations and legacies given, the Corporate Trustee would like to thank the League of Friends and all patients, relatives and staff for their generosity. Further information: If you require further information about the work and operation of the fund, please contact the Director of Finance, Norfolk & Suffolk NHS Foundation Trust, Hellesdon Hospital, Drayton High Road, Norwich, Norfolk NR6 5BE. By order of the Trustee Signed: Chairman. Date Trustee. Date 12

14 Independent auditor s report to the Trustees of Suffolk Mental Health Partnership NHS Trust Charitable Fund and other related charities We have audited the financial statements of Suffolk Mental Health Partnership NHS Trust Charitable Fund and other related charities for the year ended 31st March 2013 set out on pages 15 to 21. The financial reporting framework that has been applied in their preparation is applicable law and UK Accounting Standards (UK Generally Accepted Accounting Practice). This report is made solely to the charity s trustees as a body, in accordance with section 144 of the Charities Act 2011 (or its predecessors) and regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the charity s trustees 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 charity and its trustees as a body, for our audit work, for this report, or for the opinions we have formed. Respective responsibilities of trustees and auditor As explained more fully in the Statement of Trustees Responsibilities set out on page 11 the trustees are responsible for the preparation of financial statements which give a true and fair view. We have been appointed as auditor under section 144 of the Charities Act 2011 (or its predecessors) and report in accordance with regulations made under section 154 of that Act. Our responsibility is to audit, and express an opinion on, the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board s Ethical Standards for Auditors. Scope of the audit of the financial statements A description of the scope of an audit of financial statements is provided on the Financial Reporting Council s website at Opinion on financial statements In our opinion the financial statements: give a true and fair view of the state of the charity s affairs as at 31st March 2013 and of its incoming resources and application of resources for the year then ended; have been properly prepared in accordance with UK Generally Accepted Accounting Practice; and have been properly prepared in accordance with the requirements of the Charities Act

15 Matters on which we are required to report by exception We have nothing to report in respect of the following matters where the Charities Act 2011 requires us to report to you if, in our opinion: the information given in the Trustees Annual Report is inconsistent in any material respect with the financial statements; or the charity has not kept sufficient accounting records; or the financial statements are not in agreement with the accounting records and returns; or we have not received all the information and explanations we require for our audit. Stephanie Beavis (Senior Statutory Auditor) for and on behalf of KPMG LLP, Statutory Auditor Chartered Accountants 6 Lower Brook Street Ipswich Suffolk IP4 1AP Date KPMG LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act