Annual Report and Accounts THE ROYAL UNITED HOSPITAL BATH NHS TRUST Charitable Funds

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1 THE ROYAL UNITED HOSPITAL BATH NHS TRUST Charitable Funds Annual Report and Accounts Royal United Hospital Bath NHS Trust Charitable Fund. Registered number

2 Meatloaf, Katie Melua & Boyzone played concerts helping raise funds for the NICU space to grow Campaign

3 Contents Foreword by the Chairman of the Charities Committee Page 4 Royal United Hospital Charitable Funds Page 6 What is an umbrella fund? Our mission Review of activities Page 8 Where Our Money Comes From Page 10 Expenditure Page 12 Investments Page 14 Decision Making Arrangements Spending policies Charity Governance, Structure and Management Arrangements Page 18 Trustee Representative Recruitment Our Trustee Representatives Policies and Procedures Page 20 Objectives Page 22 Performance Against Objectives Our Future Plans Further details Page 24 Financial Statements Page 26 Page 2

4 The RUH continued to provide a positive environment for healing at the RUH

5 Foreword by the Chairman of the Charities Committee Chairman s statement Ongoing investment in Medical Research is another key area providing longer term benefits to patients. It also supported the formation of the RUH staff choir, which has gone from strength to strength during the year, bringing together staff from across the Trust to bond, in raising funds for the NICU appeal. RUH Charitable Funds exist to provide tangible benefits to the Trust s patients, their relatives and Hospital staff. The Charities Committee has operated within the challenging context of a global economic crisis and so we are particularly grateful to all those who have continued to support us through difficult times, whether by dropping coins into the collecting tins as part of Ted s Big Day Out, or giving so generously through legacies. The Forever Friends Appeal has continued its focus on fundraising for the Neonatal Intensive Care Unit (NICU) which will further develop through 2009/10. This major appeal, together with the receipt of significant legacies, has contributed to an increase in income over 2007/08. The Committee undertakes to ensure that all funds are expended as effectively as possible, through delegation to those best able to determine greatest need. Every fund holder is thus required annually to submit detailed income and expenditure plans for the Committee s scrutiny, together with any specific spending plans for larger sums of money. During the year, the Committee has begun working more closely with colleagues in the RUH League of Friends, with its Chair now invited to attend our meetings to share thoughts and ideas on the better coordination of charitable spending in the Trust. The general economy has clearly affected fund raising. People have less disposable income and with interest rates at an all time low, coupled to the stock market s decline, the Trust s investments have been adversely affected. Nevertheless the Committee s investment strategy and the portfolio under its management have been kept under regular review. We believe that we are well placed to continue our efforts to provide real benefits to the Trust s patients, their relatives and our staff. Finally, on behalf of the Board of Directors, the Committee wishes to thank all the volunteers, Trust staff and donors for their generosity. Michael Earp Chairman of the Charities Committee 8 June 2009 Substantial charitable funds have been committed to buying additional equipment and generally improving patient facilities, this having immediate impact on patient care. Spending on staff welfare and amenities has also favourably impacted, for example, in the provision of specialist training courses and recognition awards for members of staff who make significant contributions to advancing patient care. The Committee committed significant funds to the creation of a Laparoscopic Skills Laboratory in the Post Graduate Medical Centre, crucial to developing the Trust s capacity in this important discipline. Royal United Hospital Bath NHS Trust Charitable Fund. Registered number Page 4

6 150 people took part in a 21 mile canal walk in aid of Cancer Services at the Hospital

7 Royal United Hospital Charitable Funds Royal United Hospital (RUH) Charitable Funds is an umbrella fund registered with the Charities Commission for England and Wales as the Royal United Hospital Bath NHS Trust Charitable Fund (registered number ) which raises and receives donations for the Royal United Hospital. RUH charitable funds works closely with the Royal United Hospital NHS Trust By securing donations, legacies and sponsorship, RUH Charitable Funds can help make a real difference to patients and their families, and the staff who look after them. What is an umbrella fund? The accounts to which this report relates have been prepared under the provisions of Section 96(6) of the Charities Act 1993, which allows the accounts to be prepared and filed at an overall Charitable Fund umbrella level. This annual report has been prepared to comply with the Statement of Recommended Practice (SORP 2005) Accounting and Reporting by Charities. The objects of the special trusts are detailed on page 16. These are achieved by expenditure of donated and raised funds on relevant equipment and materials required. NHS Trust policies are complied with to ensure probity in expenditure. Our Mission To help our patients, their families and visitors to the hospital, by enhancing the care the hospital can offer. To provide new equipment, fund research and investment in people, and create a caring environment for all who use the hospital. We achieve our mission by spending the money provided by our generous donors on a range of charitable programmes. Examples for the main programmes undertaken in the year are detailed overleaf to help illustrate the difference we make together to save lives today and in the future. The umbrella fund may be used for any charitable purpose or purposes relating to the National Health Service wholly, or mainly provided by the RUH. Within the umbrella fund, and gaining investment and other powers from the governing document of the umbrella fund, are the following designated funds: Medical Surgical Specialty General and the following special trusts (restricted funds): Forever Friends Appeal (Formally known as the RUH 2001 Appeal ) Sheila McBrien Coronary Care Unit RUH Research RUH Cancer Research Unit (also known as the Bath Cancer Research Unit ) Kidney Research and Equipment Page 6

8 Initial designs were produced for the new spacious, sustainable NICU which will provide a pioneering approach to caring for premature babies were produced Page 7

9 Review of Activities During the year the charity undertook a variety of fundraising activities which contributed donations of 933,000. Legacies of 927,000 were gratefully received and investment income of 128,000 was earned. The total income of the charity was 2,087,000 for the financial year. This income has been applied to support the work of the RUH NHS Trust in accordance with the objectives of the charity. Within the umbrella fund is an area designated for the use of the Arts Strategy Group (ASG or Arts Fund). In 2008 the ASG was awarded a 3 year grant to be Strategic Partners for Bath & North East Somerset Arts Development. In addition, donations have been received from groups and individuals to support the promotion of various art forms throughout the hospital. These included the display of paintings and sculptures by both local and national artists, students and schoolchildren. The group employs an Arts Manager to coordinate exhibitions, artists workshops and residencies. New projects include the formation in September 2008 of an RUH Staff Choir. The choir is going from strength to strength. It has helped raise funds for The Forever Friends Appeal as well as bringing together staff members who would not normally meet. Plans are also underway to redesign the West Paediatric Courtyard for the benefit of the RUH School Room and young patients on the Isolation Ward. Sundry expenditure from the umbrella fund has included purchases such as Christmas decorations, patients Christmas presents and hampers, scarves and aromatherapy treatments for cancer patients and massage treatment for Intensive Therapy Unit patients. The main fundraising arm of the charity is the Forever Friends Appeal, formally known as the RUH 2001 Appeal. It focuses on major campaigns. Since 2007 the Appeal has focused on the NICU Space to Grow Campaign. This campaign, launched publicly in July 2007 and set to run for 3 years, aims to design and build a new, sustainable, Neonatal Intensive Care Unit ( NICU ) for premature babies. The Appeal team have found the input of volunteers invaluable, including time spent performing street collections, taking part in events and preparing mailshots for delivery. Throughout the year the umbrella fund has supported individual wards and departments, areas of research and education, and trust-wide needs such as aftercare, academic meetings, junior medical staff education and nurses amenities. Royal United Hospital Bath NHS Trust Charitable Fund. Registered number Page 8

10 September 2008 saw the formation of an RUH Staff Choir, which is going from strength to strength

11 Where Our Money Comes From 2008/ /08 Donations from Individuals ( 933,000) From pennies and pounds in a collecting box to hundreds, even thousands of pounds, we are fortunate to receive thousands of generous gifts each year towards our work. Legacies and Gifts in Memory ( 927,000) A gift in a will or a collection in memory of a loved one is a valued way of donating to charity. A gift to the RUH Charitable Funds is an investment in the future, and we are fortunate to be remembered by so many people each year. Donations from individuals Legacies and Gifts in memory Investment Income ( 128,000) By prudent management of funds held for future expenditure we earn interest and dividends. Other ( 99,000) This includes activities for generating funds, grants received and Incoming resources from other charitable activities. The challenge facing RUH Charitable Funds in the future is to maintain and grow our support so that we can continue to make a difference to the Royal United Hospital while we make a significant investment in the redevelopment of its site. Investment income Other If you would like to make a donation or support any of our fundraising activities, please contact us on , finance@ruh.nhs.uk or complete the Reply Card at the end of this Report. 0 1,400,000 1,200,000 1,000, , , , ,000 Page 10

12 State-of-the-art ultrasound scanners for the Breast Unit to complement the new Mammogram machines purchased by the RUH Trust

13 Expenditure Significant items of expenditure incurred by the Charity during the year have included: Research 271,000 spent this year ( 276,000 Spent last year) University of Bath, Post Doctoral Scientist costs for Diabetes Research ( 33,188) Patients welfare and amenities 425,000 spent this year ( 1,163,000 Spent last year, including a 500,000 CT Scanner). Equipment purchases included: 105,200 spent on state-of-the-art ultrasound equipment and software 99,365 spent on ultrasound scanners for the Breast Unit to complement the new Mammogram machines purchased by the RUH Trust (pictured, left). This has enabled the RUH to be one of the first hospitals in the South West to provide an all digital mammography service. 33,785 spent on Vacuum Assisted Closure pumps, which enables a non-invasive, dynamic and unique system to help promote wound healing. 23,050 spent on a Travel Incubator Capsule and Ventilator for the Neonatal Intensive Care Unit. 23,926 spent on a sophisticated Multihead Microscope to be used within the Trust. Staff welfare and amenities 178k spent this year ( 174k Spent last year) Various items of expenditure across the Trust. Royal United Hospital Bath NHS Trust Charitable Fund. Registered number Page 12

14 The Forever Friends Appeal was lead race charity for the 2009 Bath Half Marathon

15 Investments Surplus funds are pooled and invested in order to maximise income while minimising risk for the charity. Income and cash, gains and losses of the investments are distributed equitably across the charity funds. During the financial year the investments generated approximately 115,000 of income but experienced an unrealised loss of 369,000. Market value of investments at 1st April 2008 Investment Funds 000 Cash Fund 000 Total 000 1,434 1,015 2,449 Acquisitions Disposals at carrying value Unrealised (losses)/gains Market value of investments at 31st March (369) 0 (369) 1,618 1,015 2,633 Decision Making Arrangements The Charities Committee (the Committee) has delegated responsibility for management of individual funds to designated fund managers who must provide an annual expenditure forecast for approval. When undertaking charitable expenditure the Trust s normal procedures for procurement, tendering and capital expenditure apply. All expenditure transactions are referred to the Head of Financial Services who ensures that the correct level of authorisation is obtained. The Trustees have set the following expenditure authorisation levels: Category Review Purpose of review Charitable expenditure (Excluding Research and NICU) All expenditure Fund Manager Charitable Fund Manager Head of Financial Services 1,000 + As above, plus Director of Finance 10,000 + As above, plus Purchasing Manager or Deputy 25,000 + As above, plus Charities Committee 100,000 + As above, plus Trust Board of Directors Specific areas Research funds only NICU build As the table above, plus Research and Development Manager As the table above, plus Director of Facilities Review of appropriateness of use of funds Checking sufficient balance of funds to spent Review of appropriateness of use of charitable funds Authorising on behalf of the Charities Committee Checking purchases conform to Trust policies on tendering Trustee s representatives with authority to spend Trustee s representatives with authority to spend Spending Policies Review of appropriateness of use of funds Review of appropriateness of use of funds RUH Charitable Funds has 2 types of funds available to support the hospital, as well as 5 special trusts (restricted funds): (i) (ii) Designated (earmarked) Funds these usually contain donations where a particular part of the hospital or activity was nominated by the donor. They are overseen by Fund Managers who can make recommendations on how to spend the money within the designated area. General Funds these funds are received with no particular preference expressed by donors and are therefore the most flexible funds. These are overseen by the Committee and requests are made to the Committee for purchases. Page14

16 . Local MP Don Foster and Liz Bower from BBC s Doctors, supporting the hospital annual fundraising day Special Trusts Page 15

17 (i) RUH 2001 Appeal (also known as the Forever Friends Appeal ) (iv) RUH Cancer Research Unit (also known as the Bath Cancer Research Unit ) Furtherance of: investigation of the causes of cancer; prevention, treatment, cure and defeat of cancer; advancement of scientific and medical education and research relating to cancer; any other charitable purposes for the relief of cancer sufferers. Income into this fund has reduced over recent years and the Charities Committee and Trust Board took the decision to close the fund as at 31 March The provision of equipment for paediatrics, Critical Care, Cancer Care and Cardiology or for any other charitable purpose relating to the provision of healthcare within the redeveloped RUH site. (v) Kidney Research and Equipment Furtherance of: investigation of the causes of kidney disease; prevention, treatment, cure and defeat of kidney disease; advancement of scientific and medical education and research relating to kidney disease; any other charitable purpose for the relief of kidney disease. During the year these funds were used to advance the relief of patients. In 2008/09 the funds raised by the appeal were committed to the purchase of medical equipment for use at the RUH and towards the provision of a new, sustainable, Neonatal Intensive Care Unit (NICU) for premature babies. (ii) RUH Research Furtherance of: investigation of the causes of sickness and disability; prevention, treatment, cure and defeat of sickness and disability; advancement of scientific and medical education and research relating to sickness and disability; any other charitable purpose for the relief of sickness and disability. During the year these funds were used to advance the scientific knowledge of RUH staff in the areas of prevention, treatment, cure and defeat of sickness and disability. (iii) Sheila McBrien Coronary Care Unit Relief of sickness of patients of the CCU including promoting efficient performance of duties by staff. During the year the funds attributed to this unit were used for the purchase of equipment and training for staff of the CCU. Royal United Hospital Bath NHS Trust Charitable Fund. Registered number Page 16

18 Spin-a-Thon held in Bath city centre, where volunteers cycled to raise funds for the Forever Friends Appeal

19 Charity Governance, Structure and Management Arrangements The fund is constituted with a sole corporate trustee, under a Declaration of Trust, with the Royal United Hospital Bath NHS Trust ( the RUH ) acting as that corporate trustee. Each voting Trust Board member is a Trustee Representative which carries similar responsibilities to those of a Trustee. Decisions about the fund are made by a sub-committee, the Charities Committee, which comprises of members of the Board of Directors of the NHS Trust, acting as a Board of Trustees. Trustee Representative Recruitment The members of the NHS Trust Board are appointed in one of two ways. Executive Directors are appointed to the NHS Trust following recruitment and selection policies and procedures laid down by the Trust. When appointing Directors, the Chief Executive looks to complete a full team with a full range of skills necessary for the smooth running of the NHS Trust and Charitable Funds. Non-Executive Directors and the Trust Chairman are appointed by the NHS Appointments Commission, an independent body which covers all such appointments to the NHS. The Trust has no powers to influence the decisions of this Commission. New appointees to the Charities Committee are provided with training in their role by the Director of Finance and the Chair of the Committee. The level of training and induction is dependant on the experience and background of each member. The Trust Board has delegated the exercise of investment powers as conferred by clause D10 of the umbrella fund Declaration of Trust, to the Charities Committee. The Board has further delegated responsibility, within certain authorisation limits, for the management of funds relating to individual wards and departments to the relevant managers. provided by the Finance Department of the Royal United Hospital Bath NHS Trust. Our Trustee Representatives All Trustee Representatives (RUH voting Board members) are invited to attend the Charities Committee, however the permanent members of the Committee at the year-end were: Michael Earp Charities Committee Chairman & Vice Chairman of the RUH board Catherine Philips Director of Finance Francesca Thompson Director of Nursing Stephen Wheeler Non-Executive Director Moira Brennan Non-Executive Director A full list of the RUH NHS Trust Board members can be found in the attached financial statements. Administrative support for the operation of the fund is Page 18

20 This year saw the success of the first Human Table Football event

21 Policies and Procedures The following policies have been applied consistently throughout the year to further the objects of the charity: Introduction The overall direction and monitoring of the Charity has been delegated to the Charities Committee. The day to day running of the Charity is delegated to finance staff and designated departmental fund holders. Income Receipt books are used by all wards and departments receiving cash and cheque donations directly. Donations and other monies intended for charitable funds are accompanied by a copy of the receipt when paid in to the hospital accounts receivable team. Regular donations, including Gift Aid, are received as standing orders directly into the charitable fund bank account. Income to the 1001 Lottery club a staff based lottery generating income for the Forever friends Appeal, is deducted directly from the pay of participating permanent employees, and received from the RUH Bath NHS Trust. Income from participating casual staff is received into the charity bank account by standing order. The Forever Friends Appeal is granted permission by the local authority to make street collections in the City of Bath on its allocated flag day and at events such as the Bath Half Marathon. Cash collected is banked with the hospital accounts receivable team. The charity does not account for its income until the cash has been received as this is the only point at which the charity has reasonable certainty over the value of income. Expenditure The charitable funds should be spent in accordance with the objectives of the fund, at the earliest opportunity (subject to the reserves policy below). At the time of ordering equipment or services it is confirmed that charitable funds are an appropriate and legitimate source of funding for the purchase in question. Expenditure is accounted for on an accruals basis. Research Only research income and expenditure meeting the requirements of charitable research is administered through the Charitable Fund. Reserves The Charities Committee requires the fund to keep reserves which are at least sufficient to cover known future commitments. This is a prudent measure to avoid the costs and risks of having insufficient cover for future expenditure. Policy on Investments The Charity has a portfolio which is balanced between cash, corporate and Treasury bonds, and shares. The investment in shares will not exceed 80% of the total investment on average over any financial year. The charity invests through BlackRock Investment Management (UK) Ltd who invest in: Charinco Common Investment Fund Charishare Tobacco Restricted Common Investment Fund Institutional Sterling Fund Risk Management Policies and Practices The NHS Trust has a series of policies and procedures to ensure that risk is managed to within acceptable levels. The main risk to which the Charity is exposed relates to the loss of funds which is needed for ongoing commitments. In the short term this would be managed by use of reserves while in the longer term, Trust policies and management support would be relied upon to relieve the charity of the salary commitments of staff. In light of the current economic climate and the unrealised losses of 369,000 incurred over the financial year the Charities Committee have the investment strategy under review. The policies and procedures are regularly reviewed and audited to ensure their effective operation. The Charitable Funds are governed in such a way as to make best use of these procedures so that the Trustees can gain assurance that risks are minimised. Royal United Hospital Bath NHS Trust Charitable Fund. Registered number Page 20

22 The Bath Half Marathon family fun run was in aid of our premature babies

23 Objectives What s next? Trustees have agreed the following objectives for the management of the Charity towards achieving our goals: 1. Careful Stewardship of Funds 2. Provision of additional equipment and facilities to The Royal United Hospital in support of its work caring for 500,000 people who live within its catchment area. 3. Assisting the Royal United Hospital with its planned major developments. 4. Maximising the Charity s fundraising potential. Our Future Plans Achieving our mission involves an ongoing programme of fundraising today to give us the funds we need to invest in the health of patients tomorrow. We will achieve this by working with the RUH Trust to develop the facilities needed to provide healthcare of the highest quality to the population it serves. How do I know how well you did? Performance Against Objectives For each objective listed above, we will be identifying a number of indicators with which to measure our performance. However we believe that we are able to demonstrate achievement of our objectives in the year based on the following information: Careful Stewardship of Funds Our accounts for the year have received an unqualified audit opinion Provision of additional equipment and facilities Assisting The Royal United Hospital with its planned major developments The Charity continues to fundraise to finance a fundamental redevelopment of the Hospital Neonatal Unit over the next 2 years. Maximising the Charity s fundraising Potential Page 22

24 Supporters participating in the 3 Peaks challenge in aid of Cancer Services

25 Further details Bankers HSBC Bank Plc 45 Milsom Street Bath BA1 1DU Government Banking Service Sutherland House Russell Way Crawley West Sussex RH10 1UH Investment Advisors Contact Us Legal information BlackRock Investment Managers PO Box 9036 Chelmsford CM99 2XD Finance Department Malvern House Royal United Hospital Combe Park Bath BA1 3NG Tel: Solicitors Auditors Bevan Brittan Solicitors 35 Colston Avenue Bristol BS1 4TT Grant Thornton UK LLP Hartwell House Victoria Street Bristol BS1 6FT The accounts to which this report relates have been prepared under the provisions of Section 96(6) of the Charities Act 1993, which allows the accounts to be prepared and filed at an overall Charitable Fund umbrella level. This annual report has been prepared to comply with the Statement of Recommended Practice (SORP 2005) Accounting and Reporting by Charities. The Charitable Fund is registered with the Charities Commission for England and Wales as the Royal United Hospital Bath NHS Trust Charitable Fund under registration number Its principal office is at the Royal United Hospital NHS Trust, Combe Park, Bath BA1 3NG. I would be interested in supporting the Royal United Hospital Charitable Funds. Please send information on the following: Fundraising Pack Collecting Tins / Boxes NICU Appeal DVD Gifts in memory and legacies Appeal events Volunteering I would like to make a donation for the sum of I am a UK Tax payer and would like to Gift Aid this and all future gifts (please tick) Name Address Postcode Telephone Please make cheques payable to RUH Charitable Funds and enclose with this postcard in a sealed envelope and return to the address overleaf. Page 24

26 Charitable Funds Officer Finance Department Royal United Hospital Combe Park Bath BA1 3NG Please affix stamp

27 THE ROYAL UNITED HOSPITAL BATH NHS TRUST Financial Statements For the period ended 31 March 2009 Page 26

28 CHARITABLE TRUST ACCOUNT - ROYAL UNITED HOSPITAL BATH NHS TRUST /2009 Foreword ROYAL UNITED HOSPITAL BATH NHS TRUST CHARITABLE FUNDS HELD ON TRUST ANNUAL ACCOUNTS These accounts have been prepared by the Trustee to comply with the Statement of Recommended Practice 'Accounting and Reporting by Charities' (SORP 2005). The Royal United Hospital Bath NHS Trust is the Corporate Trustee of the funds held on trust. Statutory background The Royal United Hospital Bath NHS Trust charitable funds held on trust are registered with the Charity Commission, registration number 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 United Hospital Bath NHS Trust (RUH). Page 27

29 CHARITABLE TRUST ACCOUNT - ROYAL UNITED HOSPITAL BATH NHS TRUST /2009 Statement of Trustee's responsibilities The Trustee is responsible for: - keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the funds held on trust and to enable it to ensure that the accounts comply with requirements in the Charities Act 1993 and those outlined in the SORP 2005; - establishing and monitoring a system of internal control; - establishing arrangements for the prevention and detection of fraud and corruption. The Trustee is required under the Charities Act 1993 and the National Health Service Act 1977 to prepare accounts for each financial year. The Secretary of State, with the approval of HM Treasury, directs that these accounts give a true and fair view of the financial position of the funds held on trust, in accordance with the Charities Act In preparing those accounts, the Trustee is required to: - apply on a consistent basis accounting policies laid down by the Secretary of State with the approval of HM Treasury; - make judgements and estimates which are reasonable and prudent; and - state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the accounts. The Trustee confirms that it has met the responsibilities set out above and complied with the requirements for preparing the accounts on a going concern basis. The financial statements set out on pages 30 to 41 attached have been compiled from and are in accordance with the financial records maintained by the Trustee. By Order of the Trustee Chairman... James Carine 8 June 2009 Chief Executive and Trustee's Representative... James Scott 8 June 2009 Page 28

30 CHARITABLE TRUST ACCOUNT - ROYAL UNITED HOSPITAL BATH NHS TRUST /2009 Independent Auditor s Report to the Trustee of Royal United Hospital Bath NHS Trust Charitable Funds We have audited the financial statements of Royal United Hospital Bath NHS Trust Charitable Funds for the year ended 31 March 2009 which comprise the Statement of Financial Activities, the Balance Sheet and the related notes. These financial statements have been prepared in accordance with the accounting policies set out therein. This report is made solely to the charity s trustee, as a body, in accordance with section 43A of the Charities Act 1993 and regulations made under section 44 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 its trustee as a body, for our audit work, for this report, or for the opinions we have formed. Respective responsibilities of trustee and auditor The responsibilities of the trustee for preparing the Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) are set out in the Statement of Trustee s Responsibilities. We have been appointed as auditor under section 29 of the Audit Commission Act and section 43A of the Charities Act 1993 and report in accordance with regulations made under section 44 of the Charities Act Our responsibility is to audit the financial statements in accordance with relevant legal and regulatory requirements and International Standards on Auditing (UK and Ireland). We report to you our opinion as to whether the financial statements give a true and fair view and are properly prepared in accordance with the Charities Act We report to you whether, in our opinion, the information which comprises the commentary on the financial performance of the charity, included in the Annual Report is consistent with the financial statements. We also report to you if the charity has not kept proper accounting records, or if we have not received all the information and explanations we require for our audit. We read the Trustee s Annual Report and consider the implications for our report if we become aware of any apparent misstatements within it. Basis of audit opinion We conducted our audit in accordance with International Standards on Auditing (UK and Ireland) issued by the Auditing Practices Board. An audit includes examination, on a test basis, of evidence relevant to the amounts and disclosures in the financial statements. It also includes an assessment of the significant estimates and judgements made by the trustee in the preparation of the financial statements and of whether the accounting policies are appropriate to the charity's circumstances, consistently applied and adequately disclosed. We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order to provide us with sufficient evidence to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or other irregularity or error. In forming our opinion we also evaluated the overall adequacy of the presentation of information in the financial statements. Opinion In our opinion the financial statements: comply with the requirements of regulation 8 of the Charities (Accounts and Reports) Regulations 2008; give a true and fair view, in accordance with United Kingdom Generally Accepted Accounting Practice, of the state of the charity s affairs as at 31 March 2009 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended; have been properly prepared in accordance with the Charities Act 1993; and information which comprises the commentary on the financial performance of the charity, included in the Annual Report, is consistent with the financial statements. Senior Statutory Auditor John Golding 8 June 2009 For and on behalf of Grant Thornton UK LLP, Registered Auditor, Chartered Accountants, Hartwell House, Victoria Street, Bristol BS1 6FT

31 CHARITABLE TRUST ACCOUNT - ROYAL UNITED HOSPITAL BATH NHS TRUST /2009 Statement of Financial Activities for the year ended 31 March 2009 Incoming resources from generated 2008/ /08 Note Unrestricted Restricted Total Total Funds Funds Funds Funds funds Voluntary income: Donations ,188 Legacies Grants receivable Total voluntary income 253 1,618 1,871 1,318 Investment income Activities for generating funds Incoming resources from charitable activities Total incoming resources 346 1,741 2,087 1,550 Resources expended Costs of generating voluntary income Charitable activities ,613 Governance costs Investment management costs Total resources expended ,289 2,040 Net (outgoing)/incoming resources (1) (490) Loss on revaluation and disposal of investment assets (126) (243) (369) (83) Net movement in funds 5 (127) (573) Transfer between funds 9 26 (26) 0 0 Fund balances brought forward at 1 April 935 1,526 2,461 3,034 Fund balances carried forward at 31 March 834 2,056 2,890 2,461 The notes at pages 32 to 41 form part of this account. Page 30

32 CHARITABLE TRUST ACCOUNT - ROYAL UNITED HOSPITAL BATH NHS TRUST /2009 Balance Sheet as at 31 March 2009 Notes Unrestricted Restricted Total at 31 Total at 31 Funds Funds March 2009 March Fixed assets Investments ,873 2,633 2,449 Total fixed assets 760 1,873 2,633 2,449 Current assets Debtors Cash at bank and in hand , Total current assets , Creditors: Amounts falling due within one year , Net current assets Total assets 834 2,056 2,890 2,461 Funds of the Charity Income funds: Restricted ,056 2,056 1,526 Unrestricted Total funds 834 2,056 2,890 2,461 The notes at pages 32 to 41 form part of this account. The financial statements on pages 30 to 41 were approved by the Trustee on 8 June 2009 and signed on its behalf by: Signed: James Scott Chief Executive of the Corporate Trustee and Trustee's Representative 8 June 2009 Page 31

33 CHARITABLE TRUST ACCOUNT - ROYAL UNITED HOSPITAL BATH NHS TRUST /2009 Notes to the Accounts Accounting Policies 1.1 Accounting convention 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 policies and the Statement of Recommended Practice 'Accounting and Reporting by Charities' issued by the Charity Commission in The Charity has taken advantage of the exemption allowed for small charities under the SORP and Financial Reporting Standard 1 and has not reported a cash flow statement. 1.2 Incoming resources a) All incoming resources are included in full in the Statement of Financial Activities as soon as the following three factors can be met: i) Entitlement - arises when a particular resource is receivable or the charity's right becomes legally enforceable; ii) Certainty - when there is reasonable certainty that the incoming resource will be received; and iii) Measurement - when the monetary value of the incoming resources can be measured with sufficient reliability. b) Legacies Legacies are recorded in the statements according to their date of receipt. The Trustee feels that this is the most prudent approach as legacies are open to dispute until this stage. This is consistent with the same rules as above. c) Grants Grants are recorded as income in accordance with the same rules as expressed above. 1.3 Resources expended a) The funds held on trust accounts are prepared in accordance with the accruals concept. All expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party. b) Governance costs are accounted for on an accruals basis and are recharges of appropriate proportions of the administrative staff costs from the RUH. These are recharged to restricted and unrestricted funds based on a combination of the fund balances and the number of transactions undertaken. The audit fee is billed directly. c) Costs of generating voluntary income are recorded as those costs of the charity which relate to fund raising staff and associated administration costs. d) Those costs recorded as charitable activities are the purchase of medical equipment, training and support for the staff and services of the RUH. These last two categories of costs are recorded against restricted and unrestricted funds according to which fund incurred the cost. e) Liabilites to pay costs are recognised when they are certain, e.g. when an order has been placed or a contract signed. Page 32

34 CHARITABLE TRUST ACCOUNT - ROYAL UNITED HOSPITAL BATH NHS TRUST / Structure of funds Where there is a legal restriction on the purpose to which a fund may be put, the fund is classified in the accounts as a restricted fund. Other funds are classified as unrestricted funds. Funds which are not legally restricted but which the Trustee has chosen to earmark for set purposes are designated funds. The major funds held within these categories are disclosed in notes 9.1 and Investment fixed assets Investment fixed assets are shown at market value. i) Quoted stocks and shares are included in the balance sheet at mid-market price, ex-div. ii) Other investment fixed assets are included at the trustee's best estimate of market value. 1.6 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 opening market value (or date of purchase if later). Unrealised gains and losses are calculated as the difference between market value at the year end and opening market value (or date of purchase if later). 1.7 Pensions contributions 1.8 VAT The cost of employer pension contributions to the NHS Superannuation Scheme and other schemes is charged to the Statement of Financial Activities as they fall due. Irrecoverable VAT is included in resources expended, and the historic cost of fixed assets. 1.9 Change in the basis of accounting There has been no change in the basis of accounting during the year. The accounts have been prepared on the basis of a going concern Prior year adjustments There has been no change to the accounts of prior years Pooling scheme A pooling scheme is in operation for investments relating to all funds. Gains and losses, both realised and unrealised, are apportioned equitably over the funds involved. Page 33

35 CHARITABLE TRUST ACCOUNT - ROYAL UNITED HOSPITAL BATH NHS TRUST / Related party transactions During the year, there have been no transactions between the members of key management of the Trustee nor parties related to them and the Royal United Hospital Bath NHS Charitable Funds. Board members (and other senior staff) take decisions on both the Charity and NHS Trust 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 Charitable Trust made revenue and capital payments to the NHS Trust where the Trustee's representatives (whose names are listed below) are also members of the Trust Board. The RUH Bath NHS Trust acts as a Corporate Trustee. The Board members of the NHS Trust were: James Scott * Catherine Phillips * Beverley Goddard* Peter Hollinshead* John Waldron* Francesca Thompson* Brigid Musselwhite Howard Jones Lynn Vaughan Diane Fuller* James Carine* Stephen Wheeler* Rev. Jonathan Lloyd* Michael Earp* Prof. Peter Tomkins* Moira Brennan * Chief Executive Director of Finance Director of Finance (acting) Director of Finance (interim) Medical Director Director of Nursing Director of Planning and Strategic Development/Deputy Chief Executive Director of Facilities Head of Human Resources Director of Patient Care Delivery Chairman Non Executive Director Non Executive Director Non Executive Director Non Executive Director Non Executive Director Those marked * were Trustee's Representatives of the funds during the year. Beverley Goddard, Peter Hollinshead and Diane Fuller were no longer Trustee's Representatives at the date of signing the accounts. The Director of Nursing, Director of Finance, Michael Earp, Stephen Wheeler and Moira Brennan were members of the Charitable Funds Sub-Committee during 2008/2009 until the date of signing the accounts. The Royal United Hospital Bath NHS Trust is viewed as a connected organisation by virtue of its position as Trustee of the Charity. There are no other connected organisations. Page 34

36 CHARITABLE TRUST ACCOUNT - ROYAL UNITED HOSPITAL BATH NHS TRUST /2009 Details of 2.1 Unrestricted Restricted Total Total material Funds Funds 2008/ /08 voluntary Funds Funds income Material donations, legacies and gifts Legacies Carter F C Holmes P Cordery R G Cooke K Thomas S Bull F Bryning M Smyth R Charitable Trusts Medlock Charitable Trust Roper Family Charitable Trust Enid Linder Foundation Friends of the RUH Pink Positive Charity Clark Foundation Bath Cancer Support Group Bath Maternity Society James Dyson Foundation Annett Charitable Trust Brownsword Charitable Foundation Yews Trust Individuals Mrs J S Miss C R Mr & Mrs F Mr & Mrs R Mr H W Ms B D Companies and other organisations Rotork Plc Nutricia Ltd Roper Rhodes Ltd GlaxoSmithKline Medical Fellowship Bath Rugby Plc St John's Hospital Kansai Ltd Takeda Ltd The George Institute for International Health Robert Gordon University Material voluntary income has been defined as donations made in excess of 10,000 over a single financial year. Page 35

37 CHARITABLE TRUST ACCOUNT - ROYAL UNITED HOSPITAL BATH NHS TRUST /2009 Details of 2.2 Unrestricted Restricted Total Total incoming Funds Funds 2008/ /08 resources Grants received Arts Council England Total Investment income Investments listed on Stock Exchange Cash held as part of the investment portfolio Bank interest Total Activities for generating funds Sale of bought in goods Lottery Total Incoming resources from charitable activities Course/conference income Total Total costs Total costs Details of 3 Unrestricted Restricted resources Funds Funds 2008/ /08 expended Costs of generating voluntary income Development of fundraising initiatives Fund raising costs, publicity & adverts Fund raising costs, other Total Funds raised in response to the above expenditure represented 735,161 in 2008/09 (2007/08: 889,518). Total Total Unrestricted Restricted costs costs Funds Funds 2008/ /08 Resources expended for charitable activities Patients welfare and amenities ,163 Staff welfare and amenities Research Total ,613 Governance costs Salaries Audit fee Total Investment management costs Investment Management (BlackRock) costs Total Page 36

38 CHARITABLE TRUST ACCOUNT - ROYAL UNITED HOSPITAL BATH NHS TRUST /2009 Analysis of 4 resources expended Category 4.1 Costs of Costs of Costs of Costs of Total of resources voluntary charitable investment Governance 2008/09 expended income activities management Staff Auditors remuneration: Audit fee Investment management costs Other ,289 Staff costs 4.2 Total 2008/ Salaries and wages 386 Social security costs 29 Other pension costs 48 Total emoluments of employees (remuneration plus benefits for tax purposes) 463 Average monthly number of employees in the year: 13 No staff were directly employed by the Charitable Trust (2007/08: nil). The analysis above represents amounts charged to the Charity for staff employed by the NHS Trust who work solely on behalf of Charity. All staff are on standard NHS terms and conditions and are contracted to work with the NHS Trust. None of the funded staff earn in excess of 60,000 (2007/08: none). Changes in 5 Unrestricted Restricted Total resources Funds Funds 2008/09 available Funds for Charity use Net movement in funds for the year (127) Transfer between funds 26 (26) 0 Net movement in funds available for future activities (101) Page 37

39 CHARITABLE TRUST ACCOUNT - ROYAL UNITED HOSPITAL BATH NHS TRUST /2009 Analysis of / /08 fixed asset 6.1 Fixed Asset Investments: investments Market value at 1 April 2,449 2,027 Less: Disposals at carrying value 0 (500) Add: Acquisitions at cost 553 1,001 Net unrealised loss on revaluation (369) (79) Market value at 31 March 2,633 2,449 Historic cost at 31 March 3,002 2, March March Market value at 31 March: Investments listed on the Stock Exchange Charinco Common Investment Fund (Unit Trust) Charishare Tobacco-Restricted Common Investment Fund 1,329 1,147 1,618 1,434 Cash held as part of the investment portfolio Institutional Sterling Fund 1,015 1,015 All investments are held in the UK (31 March 2008: all held in the UK). 2,633 2,449 Analysis of 6.3 Total gross income gross income 2008/ /08 from Total Total investments Investments listed on Stock Exchange Cash held as part of the investment portfolio In both 2008/09 and 2007/08, all investment income was derived from investments held in the UK. Analysis of 7 31 March March 2008 debtors Amounts falling due within one year: Accrued income 9 7 Total debtors 9 7 Analysis of 8 31 March March 2008 creditors Amounts falling due within one year: Other creditors (RUH NHS Trust) 1, Total creditors 1, Page 38

40 CHARITABLE TRUST ACCOUNT - ROYAL UNITED HOSPITAL BATH NHS TRUST /2009 Restricted 9.1 Balance Incoming Resources Gains and Transfers Balance Funds 31 March Resources Expended Losses to 31 March 2008 Unrestricted RUH Research (86) (121) 0 1,213 Sheelagh McBrien CCU (128) (10) Kidney Research & Equipment 49 2 (11) (6) 0 34 RUH Cancer Research* (222) (12) 0 0 RUH 2001 (Forever Friends) Appeal (495) (94) (26) 703 Total 1,526 1,741 (942) (243) (26) 2,056 Restricted funds are defined as registered subsidiaries of the RUH Bath NHS Trust Charitable Fund. 26,000 was transferred from the RUH 2001 Appeal fund to the designated funds for Medicine and Specialty (See Note 9.3). This relates to a re-analysis of legacy income which more appropriately relates to activities performed under these designated funds. * The RUH Cancer Research Fund, also known as the Bath Cancer Research Unit, was closed on 31 March Details of 9.2 Name of fund Description of the nature and purpose of each fund restricted RUH Research Various NHS Research funds Sheelagh McBrien CCU NHS Coronary Care Kidney Research & Equipment NHS Kidney Disease Research RUH Cancer Research* NHS Cancer Research (fund closed at 31 March 2009) RUH 2001(Forever Friends) Appeal Provision of equipment and facilities within redeveloped RUH site Designated 9.3 Balance Incoming Resources Gains and Transfers Balance Funds 31 March Resources Expended Losses (to)/from 31 March 2008 Restricted 2009 (Restated) RUH - General Fund (44) (22) (7) 197 RUH - General Fund (other) (103) (4) 0 36 RUH - Medical (32) (17) RUH - Surgical (47) (20) RUH - Specialty (121) (63) Total (347) (126) Designated funds are defined as those designated to specific departments within the RUH. Individual fund balances which constitute the designated funds noted above have been reassessed during the year. Designated fund balances for 31 March 2008 have therefore been restated to ensure consistency with 31 March Details of 9.4 Name of fund Description of the nature and purpose of each fund designated RUH - General Fund Any charitable purpose relating to NHS, mainly for RUH services funds RUH - General Fund (other) Any charitable purpose relating to NHS, mainly for RUH services RUH - Medical Any charitable purpose relating to RUH Medical wards/departments RUH - Surgical Any charitable purpose relating to RUH Surgical wards/departments RUH - Specialty Any charitable purpose relating to RUH Specialty wards/departments Contingencies 10 There were no contingent losses/gains at 31 March 2009 (31 March 2008: nil). Page 39