Charity Annual Accounts and Trustee Annual Report for 2012/13

Transcription

1 Charity Annual Accounts and Trustee Annual Report for 2012/13 The Charity Accounts for the Trust Registered Charity Number

2 Contents Trustee Annual Report Contents 03 Reference and administrative details 04 Structure, governance and management 08 Objectives and activities of major fund categories 10 Achievements and performance 14 Financial review 18 Charity Annual Accounts 2 Trustee Annual Report for the year ended 31 March 2013

3 Reference and administrative details Reference and administrative details The accounts on which this report is based have been prepared in accordance with the Statement of Recommended Practice on Accounting and Reporting for Charities (SORP 2008) and with applicable United Kingdom accounting standards. The registered Charity Commission number for The Royal Bournemouth (RBH) and Christchurch (XCH) Hospitals NHS Foundation Trust Charitable Fund is The registered address is: The Royal Bournemouth and Christchurch Hospitals NHS Foundation Trust Castle Lane East Bournemouth Dorset BH7 7DW The Governing Document (dated 17th May 1996) of the Charity is in the form of Trust Deeds and has been registered with The Charity Commission. This document encompasses the main objectives of the charity for the provision of patient care and staff welfare at The Royal Bournemouth and Christchurch Hospitals NHS Foundation Trust, with the Board of Directors acting as a Trustee. The Trustee is given the authority to efficiently and effectively manage the charitable funds. Our charity consists of appropriate funds that can be accessed and not unreasonably restricted that benefit all members of the public. Trustee Annual Report for the year ended 31 March

4 Structure, governance and management Structure, governance and management Structure The main structure of fund remained unchanged in 2012/13: The Royal Bournemouth & Christchurch Hospitals NHS Foundation Trust Charitable Fund Unrestricted Income Restricted /Special General Designated Income Endowment (Capital) Bournemouth General Christchurch General Appeals Office Research RBH* Research XCH** Palliative RBH* Palliative XCH** Stroke RBH* Stroke XCH** Rheumatology RBH* Rheumatology XCH** Physiotherapy RBH* Physiotherapy XCH** Medical Equip. RBH* Medical Equip. XCH** Others RBH*- Umbrella Others XCH** - Umbrella Jigsaw Scanners Jigsaw Cancer and Blood Disorders Jigsaw Women s Health Recharge Supporters Expendable Permanent * Royal Bournemouth Hospital ** Christchurch Hospital The only restricted funds held by the Trust are that of the Jigsaw Appeal. All other fund balances are classified as designated unrestricted funds. This means that they are earmarked for a purpose at the discretion of the Trustee. There are no stipulations placed on the donation by the donor as to what it has to be used towards, except for the general wishes which may include the hospital they wish to benefit from the donation or the use to which the donation should be applied, e.g.equipment,etc. The Trustee seeks to fulfill the donor s wishes for both the unrestricted and restricted funds. Charitable funds are utilised in line with the donor s wish and to the furtherance of the charity objectives in respect of each fund. 4 Trustee Annual Report for the year ended 31 March 2013

5 Structure, governance and management An analysis of the unrestricted and restricted fund balances may be found in the Annual Accounts for 2012/13. Risk management The charity is solely made up of funds held on Trust for The Royal Bournemouth and Christchurch Hospitals NHS Foundation Trust. The risks identified are two-fold, namely the financial risk through ineffective internal controls and the performance of the charity s investments. The Trust utilises the facility of Internal Audit for review of the Trust and Charitable processes and procedures. Audits are conducted and any areas identified are acted upon. The Trust has mitigated the exposure to risk within its investments by balancing the investment held with an approved investment body, with cash resources. Any potential reduction is applied by an equal and opposite reduction against the individual funds. Any interest due on fixed term investments is accrued monthly and distributed to the funds on maturity. Each month a valuation is obtained from our Common Investment Fund and any gains and losses are distributed to each fund based on the closing fund balance as a percentage of the total funds, excluding the Jigsaw Appeal. None of the Jigsaw Appeal funds form part of the capital invested with the Common Investment Fund. All shares owned by the charitable funds are valued at the year-end and accrued in the accounts for reporting purposes only. These equities are not recognised as available funds for expenditure until disposed of. The Charity considers that these measures maintain an acceptable level of risk. Governance and management The Trustee of the Charitable Fund is the Board of Directors of The Royal Bournemouth and Christchurch Hospitals NHS Foundation Trust. The Board of Directors has appointed a Charitable Committee to oversee the arrangements of the Charity. This committee monitors the requirements imposed on the Trust by statutory legislation and by the Charity Commission. The committee is also responsible for monitoring the performance of the investments of the Charity through its external advisors and approves significant expenditure proposals. The following were members of the Board of Directors at the financial year-end: Executive Directors Mr A Spotswood Chief Executive Officer Mrs H Lingham Chief Operating Officer Mr S Hunter Director of Finance and Commercial Services Mr R Renaut Director of Service Development Mrs K Allman Director of Human Resources Mrs P Shobbrook Director of Nursing and Midwifery Services Mrs M Armitage Medical Director Non-Executive Directors Mrs J Stichbury Chairman Mr B Ford Mrs A Pike Mr K Tullett Chair of Charity Committee Mr S Peacock Mr D Bennett Mr P Davé Trustee Annual Report for the year ended 31 March

6 Structure, governance and management The following were members of the Charitable Committee at the financial year-end: Mr K Tullett Non-Executive Director and Chair of Committee Mr S Hunter Director of Finance and Commercial Services Mr S Peacock Non-Executive Director Mr J Evans Consultant Surgeon Mr D Bennett Non-Executive Director Mr P Papworth Deputy Director of Finance (Attendee) The Trustee has delegated authorisation of requests for funds based on the following limits: l Up to 5,000 to the fund manager plus the head of financial accounts; l All requests for 5,000-20,000 to the fund manager plus deputy director of finance. l Any requests for funds above 20,000 require approval from the Charitable Committee. The Trustee has agreed that The Royal Bournemouth and Christchurch Hospitals NHS Foundation Trust will provide administrative support to the charitable funds. This takes the form of managerial and accounting services, financial monitoring and advice. An annual fixed sum is recharged to the Charity for this service. The costs incurred throughout the year for fundraising are recharged to the charitable funds. Members induction / training Non-executive directors of the Board of Directors are appointed by the Council of Governors. The chief executive is appointed by the non-executive directors, subject to the approval of the Council of Governors. Executive directors of the Board are appointed by a committee, normally consisting of the chairman, the chief executive, at least two other nonexecutive directors and an independent assessor, to be approved by the Board of Directors. Members of the Board of Directors and the Charitable Committee are not individual trustees under Charity Law but act as agents on behalf of the Corporate Trustee. The charity provides in collaboration with the NHS Foundation Trust an induction pack for newly appointed members of the NHS Board of Directors and Charity Trustee Committee. As part of their induction programme new Executive and non-executive directors of The Royal Bournemouth and Christchurch Hospitals NHS Foundation Trust are made aware of their responsibilities as Board members of the Corporate Trustee of The Royal Bournemouth & Christchurch Hospitals NHS Foundation Trust Charitable Fund. All Executive and non-executive directors are invited to attend core induction and diversity training programmes. A guided tour of the beneficiary NHS Foundation Trust s facilities and any additional training that their role(s) may require is also offered. The chair gives new members of the Charitable Committee a briefing on the current policies and priorities of the charitable funds. This induction includes an introduction to the objectives, scope and policies of the Charitable, member responsibilities and a copy of the latest Charity Annual Accounts and Trustee Annual Report. 6 Trustee Annual Report for the year ended 31 March 2013

7 Structure, governance and management The Trustee employed the following professional advisors during the year: a) Bankers Royal Bank of Scotland (Natwest) The Square 5 Old Christchurch Road Bournemouth BH1 1DU b) Solicitors DAC Beachcroft LLP Winchester c) Auditors Deloitte LLP Reading d) Investment Managers Quilter Bristol A full set of Annual Accounts relating to Charitable held on Trust for the year ended 31 March 2013 may be obtained from: The Finance Department F20, Education Centre Royal Bournemouth Hospital Castle Lane East Bournemouth BH7 7DW The hospital website can be found at: Trustee Annual Report for the year ended 31 March

8 Objectives and activities of major fund categories Objectives and activities of major fund categories Research funds (unrestricted designated) For any purpose or purposes, principally (but not exclusively) at or in connection with The Royal Bournemouth and Christchurch Hospitals NHS Foundation Trust, which will further the following aims: a) The investigation of the causes of sickness and disability. The prevention, treatment, cure and defeat of sickness and disability in all its forms. b) The advancement of scientific and medical education and research in topics related to sickness and disability. c) The furtherance of any other charitable purposes for the relief of persons suffering from sickness and disability in all its forms. Palliative care unit fund (unrestricted designated) For any purpose or purposes relating to the National Health Service wholly or mainly for the Palliative Care Unit at The Royal Bournemouth and Christchurch Hospitals NHS Foundation Trust. Stroke rehabilitation fund (unrestricted designated) For such purposes relating to hospital services connected to stroke rehabilitation within The Royal Bournemouth and Christchurch Hospitals NHS Foundation Trust. Rheumatology fund (unrestricted designated) For such purposes, relating to the National Health Service wholly or mainly for the treatment of Rheumatology within The Royal Bournemouth and Christchurch Hospitals NHS Foundation Trust. Physiotherapy fund (unrestricted designated) To enhance the provision of physiotherapy services at The Royal Bournemouth and Christchurch Hospitals NHS Foundation Trust. Medical equipment fund (unrestricted designated) To be used for the purchase and/or maintenance of medical equipment in The Royal Bournemouth and Christchurch Hospitals NHS Foundation Trust. Other balances (unrestricted designated) There are a number of other individual fund balances that fall within the heading of unrestricted designated funds under the classification of umbrella funds. The objective of all of the umbrella funds is to utilise charitable funds to the benefit of both patients and staff within the designated area at The Royal Bournemouth and Christchurch Hospitals NHS Foundation Trust. General fund (unrestricted general) For such purpose or purposes relating to hospital services (including research) or to any other part of the National Health Service associated with The Royal Bournemouth and Christchurch Hospitals NHS Foundation Trust. 8 Trustee Annual Report for the year ended 31 March 2013

9 Objectives and activities of major fund categories Jigsaw cancer and blood disorders (restricted) The Jigsaw Appeal for Cancer and Blood Disorders ended on 31st October Its purpose was to raise funds towards the development of the Oncology and Haematology Departments at the Royal Bournemouth Hospital. This fund is classified as a restricted income fund. The building of the new unit is due to commence in October Jigsaw women s health (restricted) The current Jigsaw Appeal was launched in 18th March 2010 for women s health. Its aim is to fund a transformational upgrade to the womens health unit at Royal Bournemouth Hospital. The new facilities will support the very good service currently offered in breast and gynaecological care and improve the environment for patients. Many women are treated in the Women s Health Unit and this appeal will benefit to the local community. The building of the new unit is due to commence in October The Jigsaw website can be found at: Trustee Annual Report for the year ended 31 March

10 Achievements and performance Achievements and performance The Board of Directors on behalf of the sole corporate trustee believes that all of the unrestricted and restricted funds are able to meet their current and future commitments. Research funds (unrestricted designated) The balance on the research funds is made up of donations given for genuinely charitable research. Income received was 2K legacy and 1k donations. The closing balance at the end of the year for the research funds totalled 14k. Palliative care (unrestricted designated) This fund relates primarily to the care of terminally ill cancer patients on the Christchurch Hospital site. The Palliative XCH category within the Annual Accounts consists of the Forest Dene and Palliative Care Macmillan Unit. There was no income received during the year for the Palliative Care Fund. Expenditure totalled 7k. The closing fund balance at the year-end was 128k. Rheumatology (unrestricted designated) The closing position balance on the Rheumatology fund at the year-end was 65k. During the year the fund expended - 2k. Physiotherapy (unrestricted designated) This fund remained unchanged with a closing balance of 9k. Medical equipment (unrestricted designated) The income received for the Medical Equipment fund totalled 254k which was made up in its entirety from legacies. During the year the fund expended 55k on medical equipment for patient welfare leaving the closing balance of the medical equipment fund at 205k. The Medical Equipment Committee utilise this money and monitor its spending as part of their regular monthly meetings. Stroke (unrestricted designated) The Income received during the year for the Stroke fund totalled 21k, this was made up of legacies received 19k and donations amounting to 2k. The closing balance on the fund was 242k. 10 Trustee Annual Report for the year ended 31 March 2013

11 Achievements and performance Other balances (unrestricted designated) There are a number of individual funds that make up other funds under a category of umbrella funds. The total balance of these funds at year end was 2.0million. There are five funds over 100k and they are haematology/ oncology with a closing balance of 367k; cancer fund with a closing balance of 317k; Bournemouth Eye Unit with a closing balance of 211k; RBH/XCH heart with a closing balance 136k and the chest diseases fund with a closing balance of 106k. The remainder of the balance is made up of smaller individual fund balances. During the year, the total income amounted to 805k, of which 302k related to donations received, 407k related to legacy and recharge income of 74k. Expenditure in the year cost 442k, which includes 74k of recharge expenditure. Some of this equipment expenditure included: 66k on patient welfare, 97k on staff welfare, 42k on IT, 20k cataract Simulator, 44k ophthalmic equipment, 58k Spectra Optia System and 99k for training provision for doctors to learn Cataract procedures. General (unrestricted general) There are two main general funds for the Trust, Royal Bournemouth Hospital General Fund and Christchurch Hospital General fund. The collaborative fund balance for the General totalled 1.0m. The Royal Bournemouth General Fund maintains a sufficient balance to cover projected expenditure. During the year, the general funds received 758k of income, of which 129k related to legacies, 213k related to donations, Interest/dividends received totalled 38k and recharge income of 281k. Movement on investments amounted to a gain of 293k. Expenditure during the year was 961k capital, of which 281k related to recharge expenditure for purchase of medical equipment, 179k contribution to NHS capital expenditure and governance costs of 53k. Expenditure included: 35k staff welfare, 60k patient welfare, 103k for a spectrum single trolley system in oncology and haematology; 101k image intensifier, 103k anaesthetic machines for theatres, 51k Novacor ambulatory service in cardiac, 35k for a thermoguard machine and consumables for the critical care unit; 22k for replacement Sonosite s-nerve ultrasound machine in the anaesthetics department, 35k endoscopy camera system and 54k simulation trainer / technician in the post graduate centre. Jigsaw cancer and blood disorders (restricted) The Jigsaw Cancer and Blood Disorders appeal has remained at 1,653k for the year. Trustee Annual Report for the year ended 31 March

12 Achievements and performance The Gourmet Evening at the Chewton Glen saw top chef James Martin, as well as esteemed chefs from the area, raise money for our hospital. Jigsaw women s health (restricted) During the year, the appeal received 218k of income, of which 71k was generated from the fundraising events held throughout the year and donations received during the year totalled 72k and legacy totalled 75k. Expenditure of 54K gave a closing balance of 321K. The fundraising team organised numerous events throughout the year including a Gourmet Evening held on 15 June 2012 for 104 members of the public and staff from RBCH. The evening was a great success raising an amazing 19.5k for the Appeal. The Jigsaw Twilight walk was held on Friday 1st June 2012 and over 320 turned up for the event to walk along the seafront raising a staggering 22k (including gift Aid) for the Appeal. 12 Trustee Annual Report for the year ended 31 March 2013

13 Achievements and performance Other Jigsaw events held and being organised during the year by the fundraising team include the following: l car draw raising 8.7k l sky dive raising 7k l band night 4k profit l soft toy raffle, Easter raffle, Christmas party, Christmas raffle and a quiz night. These events all raised funds for the Jigsaw Appeal through the efforts of the Fundraising Team. for your Hospital Take on the Sky Dive Challenge. Saturday 20th July Sign up and join the Bournemouth Hospital Charity Third parties hold events throughout the year for the benefit of the Jigsaw Appeal, these included: l Tree of Light donation 3k. l Mayor of Bournemouth s Charity of the Year raised 5.5k l Mower Madness, lawn mower racing raised 1.8k l Mrs Booth s Stich in Time raised 2.3k l Keith Motors trekked three Hospital peaks Show and raised 2.5k l Numerous other events were held on behalf of the Jigsaw Appeal, including: garden parties, fashion shows, coffee mornings, sponsored walks and birthday donations. This is just a sample of the income received from third parties, there has been an overwhelming show of interest from third parties in helping to raise funds for the Women s Health Appeal. Help us raise funds for the Bournemouth Hospital Charity by making an exhilarating 10,000 feet freefall tandem parachute jump. No experience is required and if you raise the minimum amount of 395 sponsorship you will get to jump for FREE! For a free information pack call Charity Office, the Royal Bournemouth Hospital, Castle Lane East, Bournemouth BH7 7DW The Jigsaw Twilight walk Trustee Annual Report for the year ended 31 March

14 Achievements and performance Each year the Royal Bournemouth and Christchurch hospitals are fortunate to receive many charitable gifts from local residents and patients; this money is governed by the Charitable Committee which reports to the Board of Directors, whose members are trustees of the charity. This money is used to enhance the already excellent care that is received by the patients of RBCH. In 2012/13 the Trust spent an incredible 1,372 million charitable funds on items to benefit patients and staff. These much-needed items include funding for training, research and medical equipment; each item approved for funding has to meet strict criteria set by the charity s trustees and enhance treatment and care for patients and staff. Examples of the charitable spending this year include: l 90k for Doctors to learn cataract procedures l 1.2k on exercise classes for Oncology patients l 7.1k for Oncology research l 61.5k for a replacement apheresis machine used for stem cell transplant required to increase number of transplants and provide a resilience for the service l 15.6k on a new virtual queuing system in GU Medicine (sexual health services) which reduced queuing has created a more robust patient pathway and treatment l 24k for a new portable Sonosite breast scanner used to assess patients in breast clinic and help speed up the diagnostic and treatment process for patients l 31.4 k for Urology Cystoscopes used to replace aging equipment which was no longer able to provide images of contemporary quality; the new scopes provide a quicker procedure for patients l 28.5k on thoracic gas transfer equipment used in the diagnosis and monitoring of lung disease l 35k for 8 patient monitors and rolling stands in the Respiratory Department This funding provided by the local community is extremely important and helps provide a higher standard of care and a better experience for our patients, above and beyond what the NHS could otherwise afford. The Board of Directors at the Royal Bournemouth Hospital (RBH) has given the go-ahead to detailed designing of a brand new Jigsaw building. A purpose-built cancer and blood disorders unit as well as new Women s Health Unit have long been an ambition for patients and staff alike. This new build will fully use the funds raised from the current and previous Jigsaw Appeals, as well as committing further NHS funds. It will ensure a purpose-designed facility is up and running for patients to receive specialist care in an excellent environment. Oncology recliners 14 Trustee Annual Report for the year ended 31 March 2013

15 Achievements and performance New facilities for oncology and haematology patients on one floor would focus on day care and outpatients, which make up the vast bulk of the service. Breast care and gynaecology would be on the other floor in a dedicated women s health unit; bringing many services together to ensure better privacy and dignity and more one-stop services in more spacious surroundings. The two-floor building will be built at Royal Bournemouth Hospital between the Eye Unit and the Derwent Suite for Orthopaedics; planning for the new building has been received from the local planning authority and the construction of the new building should take between 12 and 16 months. First floor change and subwait 3D view of proposed entrance Trustee Annual Report for the year ended 31 March

16 Financial Review Financial Review Summary During the financial year 1 April 2012 to 31 March 2013, 2,060k ( 1,352k 2011/12) of income was received. Legacy income accounted for 886k ( 644k 2011/12) of the total income. Donation income received totalled 945k, compared to donations in 2011/12 353k. Income from activities for generating funds amounted to 71k ( 186k 2011/12). The current year donation income includes 355k ( 152k 2011/12) received from Third Parties for the recharge of purchases made throughout the year. (An analysis of this can be found in Note 2.3 in the Annual Accounts 2012/13). Long and short term investments brought income of 38k into the charitable fund. Direct charitable resources expended during the year totalled 1,517k ( 1,620k 2011/12), 1,367k ( 1,410k 2011/12) of which related to grants payable. 482k, ( 153k 2011/12) was expended on patient s welfare and amenities at The Royal Bournemouth and Christchurch Hospitals NHS Foundation Trust. This expenditure will be of paramount importance in the continuation of a quality of service provided to the patients of the hospital. A further 165k ( 416k 2011/12) is related directly to improve staff welfare and amenities. Contributions were made during the year towards Capital Schemes totalling 179k ( 836k 2011/12). Commitments unallocated to expenditure groups above are 469k ( /12) The charitable funds overall increased by 837k (- 307k 2011/12) during the financial year leaving a closing balance of 5,689k ( 4,852k 2011/12). Further details of the charitable funds performance can be seen on the Annual Return 2012/ Investment summary and performance During the year the portfolio was transferred from M and G investments to Quilter and at the year-end the historic cost of capital invested was 2,850k, an increase of 1.0m over the prior year. The valuation of Quilter at the year-end was 2,957k ( 1,664k 2011/12). At the year-end the closing valuation for the Quilter investment had shown an increase in value from the prior year of 293k (- 39k 2011/12). The Charitable Committee is continually reviewing the investments made by charitable funds ensuring that maximum growth is achieved with minimal risks to the charitable funds. Short term investments Cash was held on interest bearing deposit account with our bankers, due to the uncertainty of the investment market and therefore there were no short-term investments at the year-end (Fixed deposits of 3,500K 2011/12). Equity shares In prior years it was the policy for shares to be sold before legacies are distributed to The Royal Bournemouth & Christchurch Hospitals NHS Foundation Trust Charitable Fund. Due to the low market value of all shares on the stock market it was decided to retain the shares and dispose of when the market picks up. We have received 6k ( 2k 2011/12) in dividends from the stocks and shares we hold. The market value of these stocks and shares at the year-end was 67k ( 61k 2011/12) and they are included in the Short Term Investments and Deposits in the Balance Sheet. The movement in the revaluation of the investment asset is shown in the Statement of Financial Activities. Trustee Annual Report for the year ended 31 March 2013

17 Financial Review Investment policy The Trustee policy is to invest charitable funds with investments that maximise capital and are the most suitable investment type. The long-term objective is to invest capital to give the maximum growth on income with minimal risk. Reserve policy Most of the expenditure incurred by the Charity is in respect of contributions to patients, staff and the purchase of medical equipment. The policy of holding a reserve is a balance between keeping a relatively small sum of money in individual funds for which specific donations have been made and planning for additional capital investment. The Trustee would normally expect to retain reserves equal to two to three years of annual expenditure excluding the balance held for the Jigsaw Appeal. We exclude the Jigsaw Appeal as this is a specific appeal for an intended specific expenditure. This means that the balance of funds for the Jigsaw Appeal will exceed our reserves policy if the fundraising aim and objectives of the Jigsaw Team is achieved. The reserves policy will continue to be reviewed annually. The reserves are replenished through the receipt of significant legacies and donations together with the income generated from the fundraising events held by the Jigsaw Appeal. The Trust fundraiser continues to organise fundraising and provides the opportunity to increase income. Chairman of the Charitable Committee Mr K Tullett Non Executive Director Date: 2013 Member of the Charitable Committee Mr S Hunter Director of Finance and Commercial Services Date: 2013 Trustee Annual Report for the year ended 31 March

18 Contents Charity Annual Accounts Contents 19 held on Trust Annual Accounts Executive summary 21 Statement of Trustee s responsibilities 22 Independent Auditor s Report 24 Statement of Financial Activities 25 Balance Sheet 26 Notes to the Accounts 41 National Health Service Held on Trust (England) 18 Charitable for the year ended 31st March 2013

19 held on Trust Annual Accounts held on Trust Annual Accounts Foreword The Charity s annual report and accounts for the year ended 31 March 2013 have been prepared in accordance with Part V1 of the Charities Act 2011 and the Charities (Accounts and Reports Regulations 2008). Statutory background The Royal Bournemouth and Christchurch Hospitals NHS Foundation Trust is the Corporate Trustee of the charitable funds governed by the law applicable to Trusts, principally the Trustee Act 2000 and the Charities Act The Royal Bournemouth & Christchurch Hospitals NHS Foundation Trust charitable fund are registered with the Charity Commission, registration number and include funds in respect of the Royal Bournemouth and Christchurch Hospitals. Main purpose of the funds held on Trust The main purpose of the charitable funds held on trust is to apply income for any charitable purpose relating to the National Health Service wholly or mainly for the services provided by The Royal Bournemouth and Christchurch Hospitals NHS Foundation Trust. Charitable for the year ended 31st March

20 Executive Summary Executive Summary The year ended 31 March 2013 was a successful year for The Royal Bournemouth & Christchurch Hospitals NHS Foundation Trust charitable fund in the current market conditions. The charitable funds had total incoming resources amounting to 2,060k. This includes legacies bequeathed totalling 886k, donations of 945k and investment income of 38k. The charitable funds also received 25k from other income and 71k form events held by the Jigsaw appeal. These fundraising events help raise the profile of the Hospitals in the local community Resources expended in 2012/13 totalled 1,517k, of which 482k related to patient welfare, 165k to staff welfare and amenities and 179k was spent on capital schemes throughout the Trust. Commitments of 469k are included and further details on the expenditure for the year can be found in the Annual Report 2012/13. Charitable expenditure is of paramount importance in the continuation of the high quality service offered to our patients and also assists staff in their working lives. The Trustee wish to thank all patients, relatives, staff, volunteers and supporters whose energy and dedication has enabled us to achieve our charitable objectives. Member of the Charitable Committee Mr S Hunter Director of Finance and Commercial Services Date: 2013 The net incoming resources for 2012/13, was a 544k gain to the funds with an additional gain of 293k on the revaluation of investment assets. The charitable funds therefore increased overall by 837k leaving a closing balance of 5,689k ( 4,852k, 2011/12). The Financial Report is set out in two parts: namely an Annual Report followed by the Financial Statements and Notes to the Account. 20 Charitable for the year ended 31st March 2013

21 Statement of Trustee s responsibilities Statement of Trustee s responsibilities The trustees are responsible for preparing the Trustees Annual 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 trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that period. In preparing these financial statements, the trustees are required to: l select suitable accounting policies and then apply them consistently; l observe the methods and principles in the Charities SORP; l make judgments and estimates that are reasonable and prudent; l state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and l 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 responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The trustees are 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. The trustees confirm that due regard has been paid to the public benefit guidance published by the Charity Commission. The financial statements set out on pages 24 to 40 attached have been compiled from and are in accordance with the financial records maintained by the Trustee. By Order of the Trustee. Chairman of the Charitable Committee Mr K Tullett Non Executive Director Date: 2013 Member of the Charitable Committee Mr S Hunter Director of Finance and Commercial Services Date: 2013 Charitable for the year ended 31st March

22 Independent Auditors Report Independent Auditors Report Independent auditor s report to the trustees of The Royal Bournemouth & Christchurch Hospitals NHS Foundation Trust Charitable. We have audited the financial statements of the Royal Bournemouth & Christchurch Hospitals NHS Foundation Trust Charitable for the year ended 31 March 2013 which comprise the Statement of Financial Activities, the Balance Sheet, and the related notes 1 to 15. 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 trustees, 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 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 the charity s trustees 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 Trustees Responsibilities Statement, the trustees are 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 trustees; 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. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report. 22 Charitable for the year ended 31st March 2013

23 Independent Auditors Report Opinion on financial statements In our opinion the financial statements: l l l give a true and fair view of the state of the charity s affairs as at 31 March 2013, 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 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: l the information given in the Trustees Annual Report is inconsistent in any material respect with the financial statements; or l sufficient accounting records have not been kept; or l the financial statements are not in agreement with the accounting records and returns; or l we have not received all the information and explanations we require for our audit. Deloitte LLP Chartered Accountants and Statutory Auditor Reading Xx July 2013 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. Charitable for the year ended 31st March

24 Statement of Financial Activities for the year ended 31 March 2013 Statement of Financial Activities for the year ended 31 March 2013 Note Incoming resources donations, legacies and similar resources Unrestricted Restricted Donations Legacies donations and legacies 1, , Operating activities Activities for generating funds Investment income Other incoming resources incoming resources 2 1, ,060 1,352 Resources expended Costs of generating funds 4.2 (80) (12) (92) (150) Charitable expenditure Grants payable 3.1 (1,324) (43) (1,367) (1,410) Other grants payable 3.3 (5) 0 (5) 0 Governance costs 4.1 (53) 0 (53) (60) resources expended 5.1 (1,462) (55) (1,517) (1,620) Net incoming/(outgoing) resources (268) Unrealised gain/losses on Investments (39) Net movement in funds (307) Fund balances brought forward at 31 March ,041 1,811 4,852 5,159 Fund balances carried forward at 31 March ,715 1,974 5,689 4,852 The notes on pages 26 to 40 form part of these accounts. 24 Charitable for the year ended 31st March 2013

25 Balance Sheet as at 31 March 2013 Balance Sheet as at 31 March 2013 Fixed assets Note Unrestricted Restricted at 31 March 2013 at 31 March Investments 8.1 2, ,957 1,664 fixed assets 2, ,957 1,664 Current assets Debtors Short term investments and deposits ,626 Cash at bank and in hand 1,214 1,983 3, current assets 1,346 1,983 3,329 4,183 Creditors: Amounts falling due within one year 10 (588) (9) (597) (995) Net current assets 758 1,974 2,732 3,188 assets less current liabilities 3,715 1,974 5,689 4,852 Creditors: amounts falling due after more than one year Provisions for liabilities and charges net assets 3,715 1,974 5,689 4,852 of the charity Income : Unrestricted 3,715-3,715 3,041 Restricted - 1,974 1,974 1,811 funds ,715 1,974 5,689 4,852 Member of the Charitable Committee Mr S Hunter Director of Finance and IT Date: 2013 Charitable for the year ended 31st March

26 Notes to the Account Notes to the Account 1 Accounting policies 1.1 Accounting convention 26 The financial statements have been prepared under the historic cost convention, as modified for the revaluation of certain investments, and in accordance with applicable United Kingdom accounting standards and the Statement of Recommended Practice Accounting and Reporting by Charities issued by the Charities Commissioners in 2005 and the Charities Act Incoming resources a) 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 of the incoming resources can be measured with sufficient reliability. b) Gifts in kind The charity received no gifts in kind during 2012/13. c) Intangible income The charity had no intangible income/ expenditure during the year. d) Legacies Legacies are accounted for as incoming resources once the receipt of the legacy becomes reasonably certain. This will be once confirmation has been received from the representatives of the estates that payment of the legacy will be made or property transferred and once all 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 a separate note to the accounts with an estimate of the amount receivable. (Note 12) 1.3 Resources expended and Arrangements with RBCH staff The funds held on trust accounts are prepared in accordance with the accruals concept. All expenditure is recognised once there is a legal obligation to make a payment to a third party. a) Cost of generating funds The cost of generating funds are the costs associated with generating income for the funds held on trust. This will include the costs associated with the Jigsaw Appeal. The Trust fundraising team continues to organise fundraising and provides the opportunity to increase income. The costs associated with fundraising and the overhead facility costs, are recharged from the Royal Bournemouth (RBH) and Christchurch (XCH) Hospitals NHS Foundation Trust, and these are on an accruals basis based on actual costs incurred. b) Grants payable Grants payable are payments, made to third parties (including NHS bodies) in the furtherance of the funds held on Trust s charitable objectives are the provision of patient care and staff welfare. They are accounted for on an accruals basis where the conditions for their payment have been met or where a third party has a reasonable expectation that they will receive the grant. This includes grants paid to NHS bodies. c) Management and administrative costs Staff provision for financial information support has been agreed. Associated costs are accounted for on an accruals basis and are recorded as recharges Charitable for the year ended 31st March 2013

27 Notes to the Account of appropriate proportions from the Royal Bournemouth and Christchurch Hospitals NHS Foundation Trust. The recharge for 2012/13 totalled 52,500. The costs are recharged to the two general funds, 83% of the charge is recharged to the RBH General Fund The remaining 17% is charged to the XCH General Fund. 1.4 Structure The funds are classified and structured as shown in the table below: The Royal Bournemouth & Christchurch Hospitals NHS Foundation Trust Charitable Fund Unrestricted Income Restricted /Special General Designated Income Endowment (Capital) Bournemouth General Christchurch General Appeals Office Research RBH* Research XCH** Palliative RBH* Palliative XCH** Stroke RBH* Stroke XCH** Rheumatology RBH* Rheumatology XCH** Physiotherapy RBH* Physiotherapy XCH** Medical Equip. RBH* Medical Equip. XCH** Others RBH*- Umbrella Others XCH** - Umbrella Jigsaw Scanners Jigsaw Cancer and Blood Disorders Jigsaw Women s Health Recharge Supporters Expendable Permanent * Royal Bournemouth Hospital ** Christchurch Hospital Charitable for the year ended 31st March

28 Notes to the Account 28 Unrestricted funds A majority of the charitable funds are unrestricted in their classification. They are earmarked unrestricted funds which are classified into individual areas, to be used for a particular purpose in the future. The use of these funds are at the discretion of the Trustee to benefit both patient and staff in their use within a specified area of the Hospitals. Restricted funds The Jigsaw Appeal are restricted income funds that are expendable at the discretion of the Trustee in furtherance of some particular aspect(s) of the objectives of the charity and are in line with the donor s wishes. These funds have arisen from income generated and are for use by the fund managers to benefit the area specified in the Appeals purpose. The funds must be utilised in line with the specified purpose The Trust has no Endowment (Capital - Expendable or Permanent). Analysis of the unrestricted and restricted funds can be found in Note 11.1 and Details of the funds and their individual purpose can be obtained from the Annual Report along with information on the fund performance for the year 2012/ Fixed asset investment Investment Fixed Assets are shown at Market Value, as detailed in Note 8 to the Statement of Financial Activities. The Trustee policy is to invest charitable funds with investments that maximise capital and are the most suitable investment type. The long-term objective is to invest capital that will give the maximum growth on income with minimal risk. The investment held as at balance sheet date are units within a Restricted Investment Portfolio and are included in the Balance Sheet at the closing price at 31st March Investment 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 opening market value (or date of purchase if later). Unrealised gains and losses are calculated as the difference between the closing market value and the opening value (or date of purchase if later). These are shown in the Statement of Financial Activities under gains on revaluation of investment assets and are apportioned on a monthly basis, 83% to the RBH General Fund and 17% to the XCH General Fund. Analysis of the Investment gains and losses can be found in Note 8 to the Statement of Financial Activities. 1.7 (Fixed) short term investments These include investments placed by The Royal Bournemouth and Christchurch Hospitals NHS Foundation Trust on behalf of the charitable funds and are held in the Trusts name. Once a fixed term period has ended the monies are either reinvested in another fixed term investment for a further period of time agreed with Charity Trustee or are repaid to the Charitable. Short Term Investments include Stocks and Equities that have been received as part of Legacy distributions given to the Charitable. These are revalued at year-end and any gain or loss on revaluation of the investment asset is shown in the Statement of Financial Activities. Charitable for the year ended 31st March 2013

29 Notes to the Account 1.8 Apportionment of investment income The Fixed Asset Investment (Restricted Investment Portfolio) is revalued every month and any unrealised gains or losses on the difference between the closing balance and the opening balance are split between the two general funds (83% Bournemouth, 17% Christchurch) It was agreed by the Committee that any short-term investment interest, would be distributed to the two General funds (83% Bournemouth, 17% Christchurch ). 1.9 Pensions contributions There are no employees within the charity Prior year adjustments There have been no prior year adjustments during 2012/ Pooling scheme An official pooling scheme is registered for investments with the Charity Commission on 16 June Related party transactions The Charitable Trust has made revenue and capital payments to The Royal Bournemouth and Christchurch Hospitals NHS Foundation Trust where the Trustees are also members of the Board of Directors. A summary of the Turnover and Net Surplus for the NHS Foundation Trust for 2011/12 and 2012/13 is shown in Note 15. Arrangements are in place with The Royal Bournemouth and Christchurch Hospitals NHS Foundation Trust for the completion of a monthly recharge relating to all charitable expenditure incurred by the Trust. The recharge is paid in arrears. Details of Resources Expended with related parties during 2012/13 are shown in Note Reserves policy Most of the expenditure incurred by the Charity is in respect of contributions to patients, staff and the purchase of medical equipment. The policy of holding reserves is a balance between keeping a relatively small sum of money in individual funds for which specific donations have been made and planning for additional capital investment. The Trustees would normally expect to retain reserves equal to two to three year s annual expenditure, not including the balance of the Restricted Jigsaw. The reserves are replenished through the receipt of significant legacies and donations. In recent years, the value of income has reduced resulting in a corresponding reduction in committed expenditure. The reserves policy will continue to be reviewed annually Supporters Recognised organisations as major supporters to The Royal Bournemouth & Christchurch Hospitals NHS Foundation Trust charitable fund, are as follows: l The League of Friends Bournemouth and League of Friends Christchurch l Macmillan Caring Locally (formerly The Macmillan Cancer Trust) l Royal Volunteer Service (formerly WRVS) l Friends of the Bournemouth Eye Unit l Bournemouth Chest Diseases l WBCF - Tulip Appeal l The Bournemouth Healthcare Trust (BHT) Charitable for the year ended 31st March