Trustee s Annual Report & Financial Statements

Transcription

1 Trustee s Annual Report & Financial Statements For the Year to 31st March 2014 Wrightington, Wigan and Leigh Health Services Charity Registered Charity No

2 Wrightington, Wigan and Leigh Health Services Charity Annual Report and Accounts for the year ended 31st March 2014 Contents Reference and administrative details... 3 Foreword... 4 Acknowledgement... 4 Public interest benefit... 5 Aims and objectives... 5 Structure, governance and management... 6 Risk management... 9 Reserves policy... 9 Investment policy Performance reports from the divisional funds Finance and performance review Future plans Statement of Corporate Trustee responsibilities Statement of Financial Activities Balance Sheet Notes to the accounts Accounting policies Related party transactions Analysis of voluntary income Analysis of income - fundraising events Total gross income from investments and cash on deposit Incoming resources from charitable activities Cost of generating funds Analysis of total charitable activities Allocation of support costs and overheads Analysis of grants Analysis of staff costs Auditors remuneration Fixed asset investments Analysis of current assets - debtors Analysis of current assets - investments and cash Analysis of current liabilities and long term creditors Contingent assets and liabilities Commitments Analysis of funds Material funds detail

3 Reference and administrative details The Wrightington, Wigan and Leigh Health Services Charity, registered charity number , was entered onto the Register of Charities on 15th August Principal office The principal office for the Charity is Wrightington, Wigan and Leigh NHS Foundation Trust Trust Headquarters The Elms Royal Albert Edward Infirmary Wigan Lane Wigan WN1 2NN. Administration and records The accounting records and day-to-day administration of the funds are handled by the Finance Directorate located at Buckingham Row, Brick Kiln Lane, Wigan WN1 1XX. Donations and fundraising enquiries and assistance Elizabeth Titley Fundraising Officer (01942) Advisors The following services were retained by the Charity during 2013/14. Bank National Westminster Bank PLC Corporate Banking Services Sovereign Business Park Kingscroft Court Wigan WN1 3AP Solicitor Investment Advisor Hume Capital Management Ltd 24 Cornhill London EC3V 3ND External Auditor Weightmans LLP Deloitte LLP First Floor 1 City Square 3 Piccadilly Place Leeds Manchester LS1 1AL M1 3BN Registered administrative details and overview are also available on the Charity Commission website: 3

4 Report of the Trustee for the year ended 31st March 2014 Foreword The Corporate Trustee is pleased to present the Annual Report of Wrightington, Wigan and Leigh Health Services Charity ( the Charity, otherwise known as Three Wishes ) together with the audited Annual Accounts for the year ended 31st March The Charity s Annual Report and Accounts have been prepared by the Corporate Trustee in accordance with Part 8 of the Charities Act 2011 and the Charities (Accounts and Reports) Regulations 2008, and includes all the separately established funds for which the Wrightington, Wigan and Leigh NHS Foundation Trust is the major beneficiary. Prior period figures also incorporate minority balances assigned to Bridgewater Community Healthcare NHS Trust which were maintained under the same governance arrangements as the majority funds. They were incorporated into the Charity s accounts under historic arrangements, being below a de minimis level established by the Department of Health. During this financial year, under a transfer order approved by the Department of Health, the funds have been transferred to 5 Boroughs Partnership NHS Foundation Trust Charitable Fund, as requested by Bridgewater Community Healthcare NHS Trust. So far as the Corporate Trustee is aware, there is no relevant audit information of which the Charity s auditor is unaware. The Corporate Trustee has taken all the steps that it ought to have taken to make itself aware of any relevant audit information and to establish that the Charity s auditor is aware of that information. Acknowledgement The activities of the Charity have been achieved through the support and generosity of the local populations of Wrightington, Wigan and Leigh, and by the tireless efforts and resources of volunteers. Many of our donors have contributed in times of personal difficulty. We would like to take this opportunity to extend sincere thanks, on behalf of the patients and staff who have felt the impact of this year s donations and legacies, to everyone who kindly gave to the Charity in person, by post, or via the Just Giving website, as well as any supporters who gave their time and effort. Their contributions, imagination and enthusiasm are greatly appreciated. 4

5 Public interest benefit The Corporate Trustee ensures that the public interest benefit criteria, as detailed in the Charities Act 2011, are met by demanding that each funding application is critically assessed against those criteria. Applications are prioritised and rejected or approved based on the availability of funds and the quality of the application how much benefit is generated for each pound spent? Where possible, funds are used to provide benefit to a wide range of patients, and any funds used for staff enablement are only allocated to projects that will directly benefit patients. A summary of major purchases made by the Charity during the year under review is on pages 11 to 13. Aims and objectives Income received by the Charity is accepted, held and administered as funds and property held on trust for purposes relating to the Health Service in accordance with the National Health Service Act 1977 and the National Health Service and Community Care Act These funds are held on trust by the Corporate Trustee. Statute The Charity is committed to spend in line with the statutory public interest benefit criteria, above. It is additionally guided by its specific objects and mission statement, below. Objects The principal objects and purposes of Wrightington, Wigan and Leigh Health Services Charity as set out on the trust deed are as follows. To provide for any charitable purposes relating to the National Health Service. Mission statement The Charity works alongside the Trust to ensure that the advancement of healthcare is achieved on a daily basis. The Charitable Trust Board approved the following mission statement. The mission of Wrightington Wigan and Leigh Health Services Charity is to further improve the quality of patient care, support its staff, provide training and education, and promote medical research, in healthcare activities which are not covered or fully supported by central NHS funds. This is achieved through the generosity of the general public and by fundraising activities, events and appeals. Divisional funds Each division interprets the above statute, objects and mission statement when making delegated decisions about expenditure, in combination with their own fund objectives to benefit that specific division, in line with donors expressions of wish. Details of our activities and achievements are set out on pages 11 to 13. 5

6 Structure, governance and management Corporate Trustee The sole corporate trustee of the Charity is Wrightington, Wigan and Leigh NHS Foundation Trust. The Charity was established in accordance with paragraph 16c of Schedule 2 of the NHS and Community Care Act The Corporate Trustee is managed by its Board of Directors which consists of executive and nonexecutive directors. It has responsibility for ensuring that the NHS body fulfils its duties in managing the charitable funds. Members of the Trust Board are not individual trustees under Charity Law, but act as agents on behalf of the Corporate Trustee. They fulfil the Trustee s legal duty by ensuring that funds are spent in accordance with the objects of each fund in pursuit of public/patient benefit, and independently determine the Charity s strategy through meetings of the Charitable Trust Board. The members of the Board of Directors of the Corporate Trustee who served during the financial year were as follows. Chairman Chief Executive Director of Strategy and Planning / Deputy Chief Executive Director of Finance and Informatics Director of HR & Organisational Development Medical Director Director of Nursing Director of Performance Mr L Higgins Mr A Foster Mr S Nicholls Mr R Forster Mr J Lenney Dr U Prabhu Mrs P Jones Ms F Noden Non-Executive Director Mrs L Barnes Non-Executive Director Mr G Bean Non-Executive Director Mr R Armstrong Non-Executive Director Mr R Collinson Non-Executive Director Mr N Turner Non-Executive Director Mrs C Parker Stubbs Non-Executive Director Mr T Warne 1 1 from 1 st November All of the members were in post for the 12 month period to 31st March 2014 except where indicated. Charitable Trust Board This is a sub-committee of the Board of the Corporate Trustee. The formal purpose of the Charitable Trust Board is as follows. i. To agree the purpose and strategy of the Charity. ii. To agree expenditure from the funds, as per the Trust s Standing Financial Instructions. iii. To determine the Charity s investment strategy. iv. To agree all significant fundraising initiatives. 6

7 v. To produce an Annual Report outlining all the Charity s key achievements and areas of specific patient / public interest. Decisions are made and approved by the Corporate Trustee at separate meetings of the Charitable Trust Board, in which only Charity business is conducted. The Board members do not receive any additional remuneration or payment for expenses whilst serving on the Charitable Trust Board. The Charitable Trust Board has established a strategy of governance review to further enhance the objectives and effectiveness of the Charity. This includes continuing review of the following areas. i. Governance arrangements for standards and monitoring. ii. Fund objectives and strategy to maximise benefits to the Charity. iii. Risk management arrangements with regular risk assessments. iv. Reserves strategy. These objectives are supported by a framework of activities and timescales. Independence In June 2013, the Charitable Trust Board discussed its composition and exclusive reliance on the current members of the Trust Board. To pursue further independence and balance in its decisionmaking, it was decided that the membership of the Charitable Trust Board should be widened to include 2 non-voting governor members and a lay non-voting member. The Charitable Trust Board now comprises the Chair of Corporate Trustee; at least 4 non-executive directors of the Corporate Trustee*; at least 4 executive directors of the Corporate Trustee*; two governors (non-voting); one lay representative (non-voting). * All executive and non-executive directors of the Trust are members of the Charitable Trust Board and are entitled to attend and vote at any meeting. The members of the Charitable Trust Board who served during the year were drawn from those Corporate Trustee Board members listed above, as well as the following additional members. Governor member Governor member Lay member Mrs M Hughes Mr B Greenwood Mr M Guymer These members served on the Charitable Trust Board with effect from 16 th October Corporate Trustee s appointments The methods of appointment to the key governance roles within the Board of Directors and Council of Governors of the Corporate Trustee are reported in the Corporate Trustee s Annual Report and Accounts 2013/14 and contained within the Corporate Trustee s Constitution. Copies of these documents can be obtained by contacting the Trust (see Reference and administrative details), and the Annual Report can be viewed on the Trust website. Trust staff, including executive and non-executive directors, are required to complete the Trust s corporate induction programme, and are encouraged towards continuous professional development 7

8 through the Trust s on-going performance management arrangements. Directors are able to seek individual professional advice or training at the Trust s expense in the furtherance of their duties. Governors knowledge is refreshed through a range of briefing sessions and workshops. The Board of Directors, Charitable Trust Board and governors all have direct access to advice from the Board Secretary who is responsible for ensuring that the Corporate Trustee s procedures are followed and that applicable regulations are complied with. Constitution of the Charity The Charity was created following the merger of Wrightington Hospital NHS Trust and Wigan and Leigh Health Services NHS Trust on 1st April Supplemental deeds were executed to amalgamate the administration, trustees, objects and powers of the two charities following merger of the two organisations, creating the single body known as Wrightington, Wigan and Leigh Health Services Charity. Both of the merged Trusts themselves held a number of special purpose trusts, which were individually registered with the Charity Commission as constituent/subsidiary charities. These were eventually formally removed from the Register of Charities on 28th April 2010 as part of a funds restructure exercise. Dissolving the special purpose trusts required that the Trustee determine that the majority of funds held were not restricted at the point of donation, meaning that the donor had not imposed any trust on their use. Once this had been established, all funds were held in a single general purposes fund which constituted the entirety of the restructured charity. This single general purposes fund contained several divisional unrestricted designated (earmarked) sub-funds. The divisional sub-funds were created by the Trustee to acknowledge non-binding expressions of wish from donors about the particular division which should ideally benefit from their generosity, and enable the eventual delegation of the prioritisation of spending to key staff in those divisions. This designation (earmarking) is a record of the Trustee s intention at a point in time. It is not the same as a restriction on the funds, as a restriction is a legal trust imposed by the donor on how and where the funds are spent. Regardless of the decision to designate and delegate, the Charitable Trust Board reserves the power to apply the funds to any purpose in any area of the Trust s hospitals in accordance with the Health Service Act Restricted funds, whereby the donor has imposed a specific legal trust on how the funds will be spent, sit outside the general purposes fund and its divisional sub-funds. Restrictions reflect legal trusts imposed through legacy donations and the further written wishes of donors, as well as the trusts imposed by fundraising appeals. The Charity adopted the working name Three Wishes in The full current name of the Charity is Wrightington, Wigan and Leigh Health Services Charity. The Charity s registration number is Management and delegation During 2013/14, the day-to-day management of the four divisional funds was delegated to individual divisional committees made up of a variety of staff members and independent governors. Each divisional committee has approved terms of reference and the following remit. Develop five year business plans for their divisional fund. Develop and monitor spending plans throughout the financial year in line with the five year plan. Review, consider and, when appropriate, approve applications for charitable expenditure in their divisional area. Ensure that the funds are used effectively within their division, in line with donors wishes. 8

9 Continually review financial controls and Standard Financial Instructions confirming that all expenditure is totally consistent with their fund s objectives and patient benefit criteria. The use of charitable funds must enhance patient care which may include the purchase of new or replacement capital equipment. The Corporate Trustee reviews and monitors progress against the funds business plans throughout the year. Risk management The major risks to which the Charity is exposed have been identified and considered. A risk register has been compiled which is reviewed by the Charitable Trust Board on a quarterly basis. The Trust s Audit Committee sets aside dedicated time to discuss charitable fund audit and risk matters. Income and expenditure is monitored at Charitable Trust Board as part of the risk management process, to avoid unforeseen calls on reserves, and to ensure that the Charity is well-positioned to meet its objectives throughout the year. As at 31st March 2014, the Corporate Trustee has determined that the Charity does not have any significant residual risks. Reserves policy Background In accordance with Charity Commission guidance, the Corporate Trustee acknowledges that there is a requirement to hold reserves. This is to allow freedom to initiate expenditure when required, in advance of donations, and to mitigate the impact of any unforeseen circumstances. In some instances, the Corporate Trustee may wish to acquire expensive equipment, which may require that resources have been built up. Conversely, the Corporate Trustee recognises its statutory obligation to ensure that funds should be spent effectively and promptly. Therefore, the Corporate Trustee is required to decide as policy the minimum funds to be held in reserve, and review this level annually, in line with the business plan process. Level of reserves The Charitable Trust Board approved a revised Reserves Policy in October In order to meet expenditure in any financial year, the Corporate Trustee considers that a minimum reserve of 225,000 ( 234, /13) in the unrestricted general purpose funds should be maintained. 9

10 Investment policy Background Where NHS charitable funds have surplus monies not needed to fund immediate charitable activities, Trustees may elect to invest some or all of this surplus in order to generate additional income to fund future activities. All investment decisions must comply with the Trustee Act 2000 and have regard to the Act s standard investment criteria; and must be informed by proper professional investment advice. The Charity also avoids investments involving alcohol, arms and tobacco. The overriding objective is to safeguard the Charity s assets and minimise risk, whilst maximising returns net of administrative expense. Current practice At the start of the financial year, the Charity held a variety of investments as detailed in Notes 13 and 15. The current investment policy of the Corporate Trustee is currently to deposit the entire value of the funds with National Westminster Bank PLC in a Business Reserve account and a Special Interest Bearing Account (SIBA). This decision is based upon the available returns in the current market, considering only those investments with suitably low levels of risk. The additional benefits of this current policy include reduced administration burden and high liquidity, as banked cash is immediately available to spend if required. Interest receivable, interest payable and bank/investment charges It is the policy of the Corporate Trustee to credit/charge all interest receivable or payable, investment management costs and bank charges to the divisional funds. Interest is apportioned on the basis of average fund balance, whereas the other costs are apportioned on the basis of the total number of fund transactions. 10

11 Performance reports from the divisional funds The objectives of each of the divisional funds are outlined in Note 20 to the accounts. The main achievements of each of those divisional funds are outlined below. Medicine Division Concert for the Cancer Care Suite This was organised via Music in Hospitals who came to the Royal Albert Edward Infirmary and performed a concert for patients undergoing treatment on the Cancer Care Suite. The concert was very well received by patients, relatives and staff and it is hoped that it will be repeated again in future. Recliner chairs for the Discharge Lounge The purchase of these additional chairs contributes to the comfort of patients in the process of being discharged. Upper GI Cancer, Sleep Apnoea and Lung Cancer Support Groups These groups offer help and advice to patients and their relatives and are also attended by Trust Staff. The groups have all had very positive patient feedback for the support they have offered to date. Creation of a visitor room on Shevington Ward and purchase of improved seating This funding enabled the creation of a new relatives room. Intended uses include multidisciplinary team meetings, breaking bad news, 1:1 consultations and continuing healthcare meetings. Private, quiet spaces are sometimes difficult to find in hospitals, so the creation of this room has enabled staff and enhanced the patient and visitor experience. Room before improvements Completed visitor room Sleep Angel Pillows for use on Pemberton Ward These are designed specifically to help hospitals cost-effectively combat the risk of hospitalacquired infections, which might be caused by bacterial cross-contamination via bedding, positional aids and pressure relief surfaces. 2 CoaguChek machines for use by the Trust s Pharmacy Department These allow Pharmacy staff to perform checks on patients regarding warfarin use. Specialist profiling beds for use across the division. 11

12 Therapeutic positioning system for postural support in the Taylor Neuro-rehab Unit This equipment discourages abnormal postures, contractures, pain, skin breakdown and respiratory complications which may affect patients outcomes and quality of life, and/or lead to delayed discharge. Courses and conferences to enable staff Attendance of a junior doctor at a European Respiratory Society conference. Attendance of a member of the Gastroenterology team at a Digestive Disease Week event. Specialist cardiology course to enhance the skills and knowledge of the Cardio-respiratory Team. Training course for a member of the Chaplaincy & Spiritual Care department. Specialist Services Bioskills laboratory This medical education facility has been refurbished and upgraded with new equipment. Upper limb ultrasound equipment This ultrasound equipment will greatly improve the patient experience by allowing one-stop treatments for patients, reducing the need for travel and return visits. Pressure-relieving mattresses State-of-the-art pressure relieving mattresses have been purchased which are quieter than existing electric-powered mattresses. These mattresses also have softer borders so that patients may find it easier to get on and off beds. The mattresses have been well-received by staff and patients, with a number of patients asking if they can be bought for their own homes. Surgery Division Height-adjustable trolleys for theatres These are easier for patients to get on/off, whilst reducing moving and handling risks. In addition, all trolleys now have pressure-relieving mattresses. Blanket warming system This is intended to improve the experience of inpatients. Electric profiling beds to assist patient recovery These 5 new adjustable beds are specifically designed to help prevent pressure ulcers and optimise comfort. Integrated design features will prevent falls and help patients to get on and off the beds unassisted, promoting mobility and recovery. Computer scheduling module in Endoscopy This will enable the department to more effectively manage the booking of appointments so that there is the capacity to book 6 weeks ahead and fill short notice cancellations, therefore improving patient convenience and access to treatment. Books about childhood diabetes These are specially written in simple terms to help children with type 1 diabetes to understand their condition and the treatment that they will receive. 12

13 Cystic fibrosis equipment This is intended to assist the increasing numbers of patients diagnosed with cystic fibrosis. Equipment used in play therapy for children This contributes towards making children s time in hospital as comfortable as possible PANDA scheduling and recording system This sequences how nurses attend to and treat patients, ensuring efficiency, consistency of care and improved recording of the care given. Respiratory monitors These measure patients respiratory output and assist treatment. Sensory and play room the Light Room This provides stimulation and a quiet environment where staff can interact with patients, contributing to the patient experience. Nurse Director The funds have been utilised to improve the patient environment; purchase new equipment and resources which contribute to patient safety and comfort; and provide for staff development opportunities. Through the use of funds for Professional Development Days and external conferences we have ensured that staff are able to network with internal and external stakeholders, thus sharing excellent practice across the Trust, locally and regionally. This not only ensures that staff are up to date with current best practice, but also contributes to staff morale, which translates directly into the quality of care delivered. This section has outlined the major purchases made by each divisional fund. However, the Corporate Trustee acknowledges the additional significant contribution made to patient benefit by the numerous smaller ad hoc purchases made by the divisions throughout the year. 13

14 Finance and performance review The Charity relies upon donations and legacies as its main source of income. Total income for 2013/14 was 367,000 ( 569, /13). The following chart analyses this year s income by source. Sources of funding Donations 66,000 Many of our on-site donors give to the Charity in times of personal difficulty, whilst other donors may be motivated to say thank-you after a recent experience as a patient or carer, which leads to postal donations, Just Giving collections and external (third party) fundraising events. Fundraising activities and events are a wonderful way for the local community to contribute and get involved. This may be through supporting an existing event or organising activities from scratch. These are more effective if undertaken with the knowledge and approval of the Corporate Trustee, and the Charity s Fundraising Officer (page 3) can offer advice and help. We thank all donors for their kindness and effort. Legacies 238,000 We are very fortunate to be remembered through wills by so many kind legacy donors each year, and extend our thoughts and thanks to their friends and families. Fundraising events 55,000 This year, official fundraising events administered by the Charity have included two appeals - the Cancer Care Appeal and the second Heartbeat Appeal. 14

15 Investment income 5,000 In order to maximise the benefit of every penny donated, the Charity seeks to invest any funds which are not likely to be used in the short-term. The current investment market conditions are such that investment income has been modest in 2013/14.. Resources Expended Of the total expenditure of 552,000 ( 552, /13), 422,000 ( 464, /13) was on direct charitable activities (including support costs) across a range of programmes for patient benefit. The following chart analyses this year s expenditure (excluding the transfer of Bridgewater funds (Note 20)) by type. Cost of generating funds ( 40,000) In 2013/14, this specifically includes costs incurred in creating fundraising activities and events, and the cost of the services of a dedicated fundraising officer. Patient comforts and welfare ( 38,000) This charitable expenditure relates to the little things that mean a lot enhancing the patient (and carer) experience and supporting discharge. In 2013/14, this category has included expenditure on a Mobility Centre cars scheme which allows patients to regain their confidence to drive following serious illnesses. There has also been funding for new support groups - patients and family members can meet to discuss any problems or concerns, and share their experiences with others who have undergone a similar illness / treatment plan. 15

16 Equipment ( 374,000) This expenditure represents a fantastic achievement this year. The Charity has provided a vast array of modern and innovative equipment, much of which is detailed in the Performance reports from the divisional funds section of this report. Staff enablement ( 10,000) There are certain cases where staff development activities and education represents good value in terms of possible patient benefit, compared with other possible spend for example, nurse training in certain therapies could be put to immediate beneficial use. The Charity is committed to continue modest and justifiable spending in this area, with due regard for Charity Commission guidance which specifies that public benefit must outweigh any personal benefit to the individual staff member. Governance costs ( 29,000) This total mostly represents the costs of generating information for the Charitable Trust Board, sufficient to enable it to carry out its remit, annual audit fees and the creation of this Annual Report and Accounts. Future plans The Trust, as a body operating within the NHS, is subject to uncertainty due to changes in government policy, departmental and regulatory reforms, and local change. The Corporate Trustee is therefore committed to flexibility in the Charity s spending decisions, to accommodate the changing needs of its major beneficiary. Nevertheless, the Charity does have a process to capture and evaluate future plans. The Charitable Trust Board devolved some decision-making powers to the four divisional sub-funds with the intention of involving divisional staff in a process of identifying areas of need, and prioritising how charitable resources can be put to best use. As part of this strategy, each division has to produce five year business plans, outlining proposed future spend, including major purchases, the most individually significant of which for 2014/15 are listed below. Item Estimated Cost Hydrotherapy pool at Wrightington site 200,000 Microscope equipment 100,000 Adjustable 'profiling' beds 70,000 Swinley patient room upgrade 6,000 Upgrade of patient shower room in Shevington Ward 3,000 Additionally the Charity intends to spend appeals monies in a timely manner in accordance with the objectives of those restricted funds listed in Note 20 to the accounts. 16

17 Statement of Corporate Trustee responsibilities The Corporate Trustee is responsible for preparing the Trustee Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). The law applicable to charities in England and Wales requires the Trustee to prepare financial statements for each financial year which give a true and fair view of the Charity s financial activities during the year, and of its financial position at the end of the year. In preparing financial statements that give a true and fair view, the Trustee should follow best practice and: select suitable accounting policies and then apply them consistently; make judgements and estimates that are reasonable and prudent; state whether applicable accounting standards and statements of recommended practice have been followed, subject to any departures disclosed and explained in the financial statements; prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Charity will continue in operation; keep proper accounting records, which disclose with reasonable accuracy at any time the financial position of the Charity, and which enables the Trustee to ensure that the financial statements comply with the requirements in the Charities Act 2011, the Charity (Accounts and Reports) Regulations and the provisions of the trust deed; and safeguard the assets of the Charity, therefore taking reasonable steps in the prevention and detection of fraud and other irregularities. The Corporate Trustee confirms that it has met the responsibilities set out above and complied with the requirements for preparing the accounts. The financial statements set out on pages 20 to 32 attached have been compiled from, and are in accordance with, the financial records maintained by the Corporate Trustee. The Corporate Trustee is responsible for the maintenance and integrity of the Charity and financial information included on the Charity's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. By delegated authority on behalf of the Corporate Trustee L HIGGINS Date.. Chairman*. Trust Board Director Date *The Board may authorise another Board member to sign in place of the Chairman. 17

18 INDEPENDENT AUDITOR S REPORT TO THE TRUSTEE OF WRIGHTINGTON, WIGAN AND LEIGH HEALTH SERVICES CHARITY We have audited the financial statements of Wrightington, Wigan and Leigh Health Services Charity for the year ended 31 March 2014 which comprise the Statement of Financial Activities, Balance Sheet and the related notes 1 to 20. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). This report is made solely to the charity s trustee, as a body, in accordance with section 144 of the Charities Act 2011 and regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the charity s trustee 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 the charity s trustee as a body, for our audit work, for this report, or for the opinions we have formed. Respective responsibilities of trustee and auditor As explained more fully in the Trustee s Responsibilities Statement, the trustee is responsible for the preparation of the financial statements which give a true and fair view. We have been appointed as auditor under section 144 of the Charities Act 2011 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 An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the charity s circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the trustee; and the overall presentation of the financial statements. In addition, we read all the financial and non-financial information in the annual report to identify material inconsistencies with the audited financial statements and to identify any information that is apparently materially incorrect based on, or materially inconsistent with, the knowledge acquired by us in the course of performing the audit. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report. 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 31 March 2014 and of its incoming resources and application of resources, for the year then ended; have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and have been prepared in accordance with the requirements of the Charities Act

19 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 Trustee s Annual Report is inconsistent in any material respect with the financial statements; or sufficient accounting records have not been kept; 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. Deloitte LLP Chartered Accountants and Statutory Auditor Leeds, United Kingdom 6 November 2014 Deloitte LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006 and consequently to act as the auditor of a registered charity. 19

20 Statement of Financial Activities For the year ended 31st March 2014 INCOMING RESOURCES Incoming resources from generated funds Unrestricted Restricted Total funds Total unrestricted funds 31-Mar Mar Mar Mar-13 Note '000 '000 '000 '000 Voluntary income Donations Legacies Total voluntary income Activities for generating funds Fundraising events Investment income Incoming resources from charitable activities Total incoming resources RESOURCES EXPENDED Costs of generating funds 7 (34) (6) (40) (60) Charitable activities Patient comforts and welfare 8 (38) - (38) (42) Equipment 8 (360) (14) (374) (89) Medical research and education (304) Staff enablement 8 (10) - (10) (29) Total charitable activities (408) (14) (422) (464) Other resources expended Transfer/grant to another charity 2 (112) 51 (61) - Governance costs 9 (26) (3) (29) (28) Total resources expended (580) 28 (552) (552) Net outgoing resources before other recognised gains & losses (524) 339 (185) 17 Realised and unrealised gains on investment assets Net movement in funds (524) 339 (185) 18 Reconciliation of funds Total funds brought forward 2,070-2,070 2,052 Total funds carried forward 1, ,885 2,070 20

21 Balance Sheet As at 31st March 2014 Total funds Total funds 31-Mar Mar-13 Note '000 '000 Fixed assets Investments Total fixed assets Current assets Debtors Investments 15-1,965 Cash 15 1,926 - Total current assets 1,936 2,001 Liabilities Creditors: amounts falling due within one year 16 (51) (54) Net current assets 1,885 1,947 Total assets less current liabilities 1,885 2,070 Net assets 1,885 2,070 The funds of the charity Total restricted income funds Total unrestricted income funds 19 1,546 2,070 Total charity funds 1,885 2,070 The notes on pages 22 to 32 form part of these accounts. Approved by the Corporate Trustee and signed on its behalf: L HIGGINS Date.. Chairman*. Trust Board Director Date *The Board may authorise another Board member to sign in place of the Chairman. 21

22 Notes to the accounts 1. Accounting policies a. Basis of preparation The financial statements have been prepared under the going concern basis and historical cost convention, as modified by the revaluation of investments, and in accordance with applicable United Kingdom accounting standards and the Statement of Recommended Practice, Accounting and Reporting by Charities (SORP 2005) published in March 2005, and applicable UK Accounting Standards and Charities Act b. Funds structure Unrestricted income funds comprise those funds which the Corporate Trustee is free to use for any purpose in furtherance of the charitable objects. The Charity has a single unrestricted general purposes fund with designated sub-funds ( the 4 divisional funds Note 19). These unrestricted designated sub-funds are created to attempt to honour donors (unbinding) wishes to keep the benefit within their chosen division, and to allow for delegation of spending decisions to those divisions. Similar designated funds could be used by the Corporate Trustee at its discretion to earmark funds for specific future purposes. Any funds held within a designated sub-fund can be merged or transferred within the general purposes fund at any time, at the discretion of the Trustee, in accordance with the Health Service Act Restricted funds are to be used in accordance with the specific restrictions imposed by the donor. No future transfers between restricted and unrestricted funds are anticipated. The major funds held are disclosed in Notes 19 and 20. c. Incoming resources All incoming resources are recognised once the Charity has entitlement to the resources, it is certain that the resources will be received, and the monetary value can be measured with sufficient reliability. d. Incoming resources from legacies Legacies are accounted for as incoming resources upon receipt or where the receipt of the legacy is virtually certain. This would require that confirmation has been received from the representatives of the estate(s) that payment of the legacy will be made or property transferred, and that all of the conditions attached to the legacy have been fulfilled. Material legacies which have been notified, but not recognised as incoming resources in the Statement of Financial Activities, are disclosed in Note 3 to the accounts, with an estimate of the amount receivable. e. Resources expended All expenditure is accounted for on an accruals basis, and is recognised once there is a legal or constructive obligation committing the Charity to the expenditure. Contractual 22

23 obligations are recognised as goods or services are supplied to either the Trust or the Charity. Grants may only be made to related or third parties in furtherance of the charitable objects of the fund. However, with the exception of a transfer to a related party (Note 2) the Charity has not issued any grants to third parties. f. Irrecoverable VAT Irrecoverable VAT is charged against the same category of resources expended as the underlying purchases. g. Allocation of overhead and support costs Overhead and support costs have been allocated as a direct cost and apportioned on an appropriate basis between cost of generating funds (Note 1.h), charitable activities (Note 1.i) and governance costs (Note 1.j), as disclosed in the Statement of Financial Activities and Note 9. Cost of generating funds and governance costs are thereafter apportioned between the divisional funds by way of an equal fixed cost per fund. Within charitable activities, support costs includes variable costs, such administration costs and bank charges, which have been apportioned between the divisional funds on the basis of the number of transactions within each fund for the year. h. Cost of generating funds These are costs associated with generating incoming resources, and are recognised as per the Charity s other expenditure. Investment management fees, costs incurred in creating fundraising activities and events, and the cost of a fundraising officer are all included. i. Charitable activities The costs of charitable activities include all costs incurred in the pursuit of the charitable objects of the Charity. These costs comprise the direct costs of charitable purchases, and an apportionment of overhead and support costs as shown in Note 8. j. Governance costs Governance costs comprise all costs incurred in the governance of the Charity. These costs include fees pertaining to the provision of governance and financial papers to the Charitable Trust Board, the creation of the Annual Report and Accounts, audit fees, and any associated support costs. Expenditure on strategic advice and consultancy services would also be classed as governance costs as and when it arises. k. Fixed asset investments Investments are stated at market value as at the Balance Sheet date. The Statement of Financial Activities includes the net gains and losses arising on revaluation and disposals throughout the year. All fixed asset investments were disposed of during this financial year. 23

24 l. Realised gains and losses All gains and losses are taken to the Statement of Financial Activities as they arise. Realised gains and losses on investments are calculated as the difference between sales proceeds and the market value at the start of the year (or purchase cost if bought in year). Unrealised gains and losses are calculated as the difference between market value at the year end and opening market value (or purchase cost if bought in year). 2. Related party transactions The Charity is a subsidiary of the Trust and is therefore a related party. Wrightington, Wigan and Leigh NHS Foundation Trust is the major beneficiary of the Charity. The Charity provides funding to the Trust for approved expenditure made on behalf of the Charity. During the year the Charity made payments to Wrightington, Wigan and Leigh NHS Foundation Trust totalling 647,714 ( 655, /13) primarily for purchases made by the Trust on behalf of the Charity. At 31st March 2014, Wrightington, Wigan and Leigh NHS Foundation Trust owed the Charity 1,336 for an overpayment made in the year. This debt was settled after the Balance Sheet date. The Charity owed the Trust 52,387 at the Balance Sheet date for services delivered and purchases made but not yet paid for. All transactions entered into during the year were conducted on an arm s length basis. During the year, none of the members of the Trust Board, Charitable Trust Board or senior Trust staff, or parties related to them, were beneficiaries of the Charity, and none of these individuals have undertaken any material transactions with the Charity or received honoraria, emoluments or expenses in the year. Board members, and other senior staff, take decisions on both Charity and exchequer matters, but endeavour to keep the interests of each discrete, and do not seek to benefit personally from such decisions. Declarations of personal interest have been made in both capacities and are available to be inspected by the public. The Corporate Trustee has purchased Directors and Officers liability insurance. Prior to 31st March 2013, NHS charitable funds considered to be subsidiaries were excluded from accounts consolidation ( group accounts ), in accordance with a Treasury accounting direction issued by Monitor. This dispensation is no longer available and NHS foundation trusts need to consolidate any material NHS charitable funds. The Trust reviewed the figures contained within the single-entity financial statements contained in this Annual Report and Accounts, and has determined that they are immaterial to the Trust group. Consolidation has therefore not occurred. Minority balances assigned to Bridgewater Community Healthcare NHS Trust have been maintained under the same governance arrangements as the four major divisional funds. They were incorporated into the Charity s accounts under historic arrangements, being below a de minimis level established by the Department of Health. The funds relating to Bridgewater Community Healthcare NHS Trust ( 61k) were transferred to 5 Boroughs Partnership NHS Foundation Trust Charitable Fund following the approval of a transfer order by the Department of Health. 24

25 3. Analysis of voluntary income 31-Mar Mar Mar Mar-13 Total Unrestricted Restricted Total unrestricted funds funds funds funds Donations '000 '000 '000 '000 Medicine Divisional Fund Specialist Services Divisional Fund Nurse Director Divisional Fund Surgery Divisional Fund Bridgewater Community Healthcare NHS Trust Miracle Ball Sub Total Legacies Medicine Divisional Fund Specialist Services Divisional Fund Nurse Director Divisional Fund Surgery Divisional Fund Heartbeat Appeal Cancer Care Suite Appeal Sub Total Total Within the period of this review, the Charity was advised of future legacy income with a value of 81,983, which did not meet the virtually certain criterion for recognition. This income became virtually certain to the value of 81,633, although not yet received, by the date of compilation of this Annual Report and Accounts. 4. Analysis of income - fundraising events 31-Mar Mar Mar Mar-13 Total Unrestricted Restricted Total unrestricted funds funds funds funds Fundraising events '000 '000 '000 '000 Medicine Divisional Fund Nurse Director Divisional Fund Surgery Divisional Fund Heartbeat Appeal Cancer Care Suite Appeal Total

26 5. Total gross income from investments and cash on deposit 31-Mar-14 Held in UK Total ' Mar-13 Held in UK Total '000 Dividend income from government gilts - 2 Interest from Special Interest Bearing Account 5 - Interest from certificates of deposit Incoming resources from charitable activities 31-Mar Mar Mar Mar-13 Total Unrestricted Restricted Total unrestricted funds funds funds funds '000 '000 '000 '000 Specialist Services Divisional Fund Medicine Divisional Fund Total Prior year income was primarily from the provision of training courses carried out by the Specialist Services division in furtherance of the Charity s objects. 7. Cost of generating funds 31-Mar Mar Mar Mar-13 Total Unrestricted Restricted Total unrestricted funds funds funds funds '000 '000 '000 '000 Cost of managing investment portfolio Cost of fundraising - incidentals Cost of fundraising officer Cost of professional fundraiser for a review of Wrightington Hospital 11 Total

27 8. Analysis of total charitable activities The Charity made payments to Wrightington, Wigan and Leigh NHS Foundation Trust for the purchase of donated fixed assets (i.e. medical and other equipment) and the funding of revenue items, which are typically smaller value or consumable items which increase patient comfort. Revenue Donated fixed Support funding assets costs Total '000 '000 '000 '000 Patient comforts and welfare Equipment Medical research & education Staff enablement Total Allocation of support costs and overheads The costs of administering the Charity have then been apportioned between governance costs and support costs (Note 8). Allocation and apportionment 2013/14 Allocated to Basis of to governance costs Total governance Support costs Apportionment '000 '000 '000 Financial admin & governance Fixed allocation plus number of transactions Insurance Governance - fixed External audit Governance - fixed Incidentals 3-3 Number of transactions In 2012/13 these costs were: Financial admin & governance Fixed allocation plus number of transactions Insurance Governance - fixed Internal audit Governance - fixed External audit Governance - fixed Incidentals 1-1 Number of transactions Analysis of grants Payments are made to Wrightington, Wigan and Leigh NHS Foundation Trust to fund the purchase of revenue goods or services and fixed assets. These transactions could be considered to be grant-like in nature. No direct grants are made by the Charity to individuals or third parties. 27

28 11. Analysis of staff costs The Charity does not directly employ staff. Instead, the resources of Wrightington, Wigan and Leigh NHS Foundation Trust are used, and an administration fee is levied by the Trust in order that the Trust can recover estimated costs incurred. An itemised forecast of the costs for the forthcoming year is presented annually to the Charitable Trust Board, and the agreed annual administration fee is then charged to the Charity in 1/12ths over the year. The staff who perform administrative and fundraising functions work within Trust policy and under Trust direction, with identical terms and conditions to all other Trust staff, and their workload may be covered by colleagues interchangeably. These points would all suggest that these staff have not been seconded into the Charity, and that the supply is one of service, not of staff. The Charity therefore does not require separate staff costs disclosures, and the relevant expenditure is contained within Note Auditors remuneration The auditors remuneration of 7,140 ( 6, /13) including VAT relates solely to the statutory audit of these accounts. No other additional services have been provided. This fee is included wholly within governance costs in the Statement of Financial Activities. 13. Fixed asset investments Movement in fixed asset investment 31-Mar Mar-13 Total Total '000 '000 Market value brought forward 123 2,204 Add additions to investments at cost Less disposals at carrying value (123) (2,302) Add net gain on revaluation - 1 Market value as at 31st March Historic cost as at 31st March Market value 31-Mar-14 Total ' Mar-13 Total '000 Investments in government gilts - 8 Subordinated loan notes - - Cash held as part of investment portfolio Total market value of fixed asset investments

29 14. Analysis of current assets - debtors 15. Analysis of current assets - investments and cash Balances held between the NatWest Current Account, Business Reserve account and Special Interest Bearing Account are 1,926k ( 1,965k 2012/13). 16. Analysis of current liabilities and long term creditors 31-Mar Mar-13 Total Total Creditors under 1 year '000 '000 Trade creditors - 7 Accruals Overdraft Contingent assets and liabilities The Trust has no contingent assets or liabilities. 18. Commitments The Trust has no commitments undisclosed in the Balance Sheet except for Trust purchase orders for which the goods or services have not yet been received, and administrative expenses, where the Charity has undertaken to ultimately fund these purchases. 29