Aneurin Bevan Local Health Board. Charitable Fund and Other Related Charities. Trustee s Annual Report and Accounts

Transcription

1 Aneurin Bevan Local Health Board Charitable Fund and Other Related Charities Trustee s Annual Report and Accounts

2 1. Foreword The corporate trustee presents the Aneurin Bevan Local Health Board Charitable Fund and Other Related Charities Annual Report together with the audited financial accounts for the year ended 31 st March The Charity s accounts and annual report for the year ended 31 st March 2014 have been prepared by the Corporate Trustee in accordance with the Charities Act 2011 and the Charities (Accounts and Reports) Regulations Reference and Administrative Details Charity Name: Aneurin Bevan Local Health Board Charitable Fund and Other Related Charities Registered Charity No: Address of Charity: Headquarters St Cadoc s Lodge Road Caerleon Newport NP18 3XQ Administration of the Charitable Funds: The accounting records and the day to day administration of the funds are undertaken by: Professional Advisors Charitable Funds Section Corporate Finance Department Aneurin Bevan University Local Health Board Block C Mamhilad House Mamhilad Park Estate Pontypool Torfaen South Wales NP4 0YP Tel No: Bankers: Lloyds Bank Newport Branch 42 Commercial Street Newport NP20 1WX Page 1 of 14

3 Investment Managers: External Auditors: Internal Auditors: VAT Advisor: Legal advice for TP Price Estate: Estate Management Services and valuations for TP Price Estate: CCLA Investment Management Limited Senator House 85 Queen Victoria Street London EC4V 4ET The Auditor General for Wales 24 Cathedral Road Cardiff CF11 9LJ NHS Wales Shared Services Partnership Audit & Assurance Services 4-5 Charnwood Court Heol Billingsley Parc Nantgarw Cardiff CF15 7QZ Deloitte LLP 3, Rivergate, Temple Quay Bristol BS1 6GD Jacklyn Dawson Solicitors Equity Chambers John Frost Square Newport South Wales NP20 1PW Graham & Co. Chartered Surveyors St Pauls House 114 Commercial Street Newport South Wales NP20 1LW Valuations for The District Valuer 13 Clytha Square: District Valuer Services Ty Rhodfa Ty Glas Road Llanishen Cardiff CF14 5GR 3. Structure, Governance and Management of Charitable Funds The charity was created by Trust Deed on 14 th May 2001 and named as Gwent Healthcare NHS Trust Charitable Fund. The reorganisation of health services in Wales created the Aneurin Bevan Local Health Board on 1 st Page 2 of 14

4 October As a result of this, the registered charities listed below merged and the corporate trustee registered all the funds of the charity as an umbrella charity called The Aneurin Bevan Local Health Board Charitable Fund and Other Related Charities on 7 th January 2011, using the registration number of the former Gwent Healthcare NHS Trust which formed by far the majority of the new charity: Predecessor organisations Organisation Registered Charity Number Gwent Healthcare NHS Trust Blaenau Gwent Local Health Board Caerphilly Local Health Board Monmouthshire Local Health Board Newport Local Health Board This registration also encompasses Aneurin Bevan Local Health Board (Expendable Funds) Common Investment Fund. This combines the funds of the charity into one pool for investment purposes. Objects of the Charity The objects of the charity are as follows: The trustees shall hold the trust funds upon trust to apply income, and at their discretion, so far as permissible, capital, for any charitable purpose or purposes relating to the National Health Service. The trustee is Aneurin Bevan Local University Health Board. The executive directors and independent members of the Board share the responsibility for ensuring that the health board fulfils its duties as a corporate trustee in managing charitable funds. The chair and independent members of the Board are appointed by the Welsh Government and the executive directors are appointed by the Health Board. Trustee Arrangements Aneurin Bevan University Local Health Board is the corporate trustee of the Charity. The directors who served the Aneurin Bevan University Local Health Board during the year to 31 st March 2014 were as follows: Mr David Jenkins OBE Chairman Prof Siobhan McClelland Vice Chair (from 9 th April 2013) Dr Andrew Goodall * Chief Executive Mr Alan Brace * Director of Finance Judith Paget Chief Operating Office and Deputy Chief Executive Dr Grant Robinson Medical Director (until 30 th August 2013) Page 3 of 14

5 Dr Paul Buss Mrs Denise Llewellyn Anne Phillimore Janet Smith Dr Gill Richardson Allan Davies Richard Bowen Richard Bevan Wendy Bourton OBE Jane Carroll * Mark Gardner* Stewart Greenwell Dr Sue Greening Prof Helen Houston Christopher Koehli Liz Majer Cllr Brian Mawby * Joanne Smith* Philip Robson* Peter Sampson * Prof Janet Wademan * Members of the Charitable Funds Committee. Charitable Funds Committee Medical Director (from 6 th September 2013) Nurse Director Director of Workforce and Organisational Development Director of Therapies and Health Science Director of Public Health Director of Performance Improvement Director of Planning Board Secretary Associate Associate (until May 2013) Associate Associate (from July 2013) The Board of Aneurin Bevan University Local Health Board, on behalf of the corporate trustee, has delegated responsibility to the Charitable Funds Committee. The Committee is required to: Control, manage and monitor the use of the fund s resources for the public benefit having regard for the guidance issued by the Charity Commission Provide support, guidance and encouragement for all its activities whilst managing and monitoring the receipt of all income Ensure that best practice is followed in the conduct of all its affairs fulfilling all of its legal responsibilities Ensure that the Investment Policy approved by the Health Board as corporate trustee is adhered to and that performance is continually reviewed whilst being aware of ethical considerations Keep the Health Board fully informed on the activity, performance and risks of the charity Membership of the Charitable Funds Committee is as follows: Mr Peter Sampson Dr Andrew Goodall (Chair of Committee until 30 th September 2013) Chief Executive Page 4 of 14

6 Mr Alan Brace Cllr Brian Mawby Ms Jane Carroll Ms Joanne Smith Mr Philip Robson Mr Mark Gardener Director of Finance (Chair of Committee from 1 st October 2013) Associate The following officers also attended the committee: Mr David Jenkins OBE Mr Andrew Naylor Mr Richard Bevan Mrs Bryony Codd Chairman Assistant Director of Finance Board Secretary Head of Corporate Governance Members shall be appointed to hold office for a period of one year at a time, up to the maximum of their term of office. During this time a member may resign or be removed by the Board. The Board should consider rotating a proportion of the Committee s membership after three or four years service so as to ensure the Committee is continuingly refreshed while maintaining continuity. Trustee Induction and Training As part of their induction programme, new Executive and Non Officer Members of Aneurin Bevan University Local Health Board are made aware of their responsibilities as Board members and as a Corporate Trustee of Aneurin Bevan Local Health Board Charitable Fund and Other Related Charities. At each Charitable Funds Committee meeting, members are advised of any changes in legislation or other requirements relating to charities. Public Benefit The Charitable Funds Committee has been made aware of its duties in relation to public benefit. The objects of the charity are such that all expenditure from the charity is for the benefit of the National Health Service and as such is therefore for public benefit. Management of Funds The Director of Finance is responsible for the day-to-day management and control of the administration of charitable funds and reports to the Charitable Funds Committee. The Director of Finance has particular responsibility for ensuring that: The spending is in accordance with the objects and priorities agreed by the Charitable Funds Committee The criteria for spending charitable monies are fully met All accounting records are maintained Page 5 of 14

7 Devolved decision making or delegated procedures are in accordance with the policies and procedures set out by the Board on behalf of the corporate trustee Within the charity there are a number of unrestricted funds that are designated for certain wards and departments. These funds are delegated to authorised fund holders to approve expenditure within predefined limits. All expenditure requests exceeding 12,500 are subject to Committee approval. A limited number of funds, such as the TP Price Estate fund, are controlled by the Charitable Funds Committee. The Health Board has a formal procedure that sets out guidance to fund managers to aid them in the process of approving appropriate expenditure from funds. 4. Strategic Objectives & Activities The main purpose of the charity is to apply income for any charitable purposes and public benefit relating to the National Health Service services delivered in Gwent. Charitable Funds received by the charity are accepted, held and administered as funds held on trust in accordance with the National Health Service (Wales) Act The principal areas in which the funds are applied for the benefit of the public are: The purchase of medical equipment for use by Aneurin Bevan University Local Health Board The provision of patient welfare activities and amenities The education and welfare of staff The corporate trustee fulfils its legal duty by ensuring that funds are spent in accordance with the objects of each fund. The trustee respects the wishes of our generous donors to benefit patient care and advance good health and welfare of patients and staff. The trustees have read and paid due regard to the Charity Commission s guidance on public benefit, and ensures that all expenditure fulfils public benefit criteria. The charity is constituted of 393 unrestricted funds and 35 restricted funds as at 31 st March Material fund details are shown in Note 12 to the accounts. The current structure of the individual funds reflects the fact that the majority of income and expenditure is focused where patients receive services. Fund managers exercise control over the funds donated to their management area. 5. Risk Management The main risks associated with the charity relate to: Financial controls risk Investment risk Financial Control Risk Page 6 of 14

8 A financial control procedure has been developed for Charitable Funds and agreed with the Charitable Funds Committee to ensure that there are sufficient management controls in place to ensure regulatory compliance and minimise risk of fraud and error. Specifically to: Ensure the spending is in accordance with the objects and priorities agreed by the Charitable Funds Committee Ensure the criteria for spending charitable monies are fully met Ensure all accounting records are maintained Ensure devolved decision making is within specified parameters All other Financial Control Procedures covering core financial systems within Aneurin Bevan University Local Health Board are also applied to the financial administration of the charity. An internal audit is undertaken annually to evaluate the adequacy of procedures and controls in place and to test compliance against those procedures. Audit Reports are presented to both the Charitable Funds and Audit Committees of the Health Board, and this is a key measure in mitigating control risk. The Internal Audit report for 2013/14 provided reasonable assurance on controls covering charitable funds. This definition of assurance generally means there is reasonable assurance that arrangements to secure governance, risk management and internal control are suitably designed and applied effectively. Investment Risk This risk is mitigated by investing in a diverse portfolio of investments through the professional advice of investment managers. Our investment managers, CCLA, attend the Charitable Funds Committee at least annually to present and discuss investment performance and strategy. 6. Reserves Policy The corporate trustee s strategy is to apply charitable funds within a reasonable time of receipt, ideally within one to two years, unless the donation is made to an area or appeal which is saving towards a specific item over the medium to longer term. Historically, the level of annual expenditure has generally approximated to the level of annual income with reserves being utilised to manage any fluctuations in these levels. Having examined the circumstances facing the charity, namely its future predicted income and expenditure patterns and the value of fixed asset investments held, the corporate trustee considers that the current level of reserves is relatively high, despite a reduction in the last few years and the strategy going forward is to reduce this level. The corporate trustee recognises the need to regularly review the target level of reserves, especially when investments held in land and property Page 7 of 14

9 are sold or the land and property is re-valued. Consequently, the corporate trustee reviews the charity s activities and operations on a regular basis, to ensure that its aim of being able to apply charitable funds within a reasonable time is achieved. Key performance indicators that measure targeted reductions in reserves are reviewed at least on an annual basis. 7. Grant Making Policy The use of our funds is restricted by the governing document which established the charity for purposes connected with the NHS. Grants consist of: General Funds This consists of donations received by the charity where no particular preference as to its expenditure has been expressed by donors. The Charitable Funds Committee decides on how these funds should be spent by receiving expenditure requests from across the Health Board. Designated Unrestricted Funds These consist of donations where a particular part of the hospital or activity was nominated by the donor at the time their donation was made. Whilst their nomination is not binding on the trustee, the designated funds reflect these nominations. The designated funds are overseen by fund holders. Designated Restricted Funds These consist of legacies where a legal document restricts the use to the terms of the bequest. In , the charity made grants of 1.987m representing 98% of the total charitable expenditure. In making grants the trustee requires that the activity falls within the objects of the charity and relate to the specific purpose of the individual funds from which it is being met. 8. Relationships with External Bodies The charity has long-standing arrangements with numerous voluntary organisations such as the League of Friends, WRVS and other charities and individuals that provide services and or raise funds on behalf of the charity. The corporate trustee is extremely grateful to all individuals, corporate bodies, associations, societies, clubs and various organisations who made donations to the charity during the year. Page 8 of 14

10 9. Review of our Finances, Achievements and Performance The financial statements for are presented at the end of this report. The net assets of the Charity as at 31 st March 2014 were million ( million). Overall net assets decreased by 999,000, which is mainly due to a decrease in cash held. Incoming Resources The charity does not actively undertake fundraising but relies upon the generosity of patients, their relatives and other donations in recognition of the care and treatment received from Aneurin Bevan University Local Health Board. The charity therefore continues to rely on donations, legacies and investment income as the main sources of income. Incoming resources were 308,000 lower than the previous year. Donations decreased by 136,000, legacies decreased by 148,000 while investment income went down by 24,000. Legacies The charity received eight legacies during the year, total value 47,524 ( legacies, value 196,000). The corporate trustee continues to be extremely grateful to all those legators that gave so generously to the work of the charity. Expended Resources Charity expenditure for the year totalled 2,090,000, a decrease of 150,000 from the previous year. The majority of expenditure is on the purchase of equipment, as shown below: Purchase of Equipment Total expenditure on equipment was 1,361,000. The main items consist of: General Fund Purchases via Charitable Funds Committee Minor Works alterations to establish a therapy room, Ward 2/4, Nevill Hall Intensive Care Chair, Intensive Care Unit, Nevill Hall Bed Mover, Main Delivery Unit, Royal Gwent Furniture, New Training Facility, HQ, St Cadoc s Page 9 of 14

11 Audiovisual Training Equipment, New Training Facility, HQ, St Cadoc s Contribution to Specialised Children s Playground, Serennu Children s Centre Bladder Scanner, Outpatients, Chepstow Community Minor Works alterations to convert a bathroom to a storeroom, Ward C5 West, Royal Gwent Vascular Ultrasound, Vascular Laboratory, Royal Gwent Echocardiogram, Paediatrics, Nevill Hall Echocardiology Machine, Medical Assessment, Royal Gwent Minor Works alterations to replace flooring, Anwylfan & Ty Glas Wards, Ysbyty Ystrad Fawr Minor Works alterations to upgrade Treatment Area, Physiotherapy Unit, Nevill Hall 4 Monitors, Endoscopy, Royal Gwent Oral Scanner, Dental Surgery, Outpatients, Royal Gwent Minor Works alterations to upgrade various rooms, Urology, Royal Gwent Bespoke storage for various wards and departments, Nevill Hall Ultrasound System, Accident & Emergency Unit, Royal Gwent Patient televisions, Rhymney Resource Centre Voluntary Body Purchases Baby Monitor, Neonatal Intensive Care Unit, Nevill Hall Couch Ergometer, Cardiology Unit, Royal Gwent Ultrasound Scanner, Ward C4 West, Royal Gwent Maxi Hoist, Ward D6 East, Royal Gwent Centricity Upgrade Licence, Cardiology Unit, Royal Gwent Hoist, Ward C6 East, Royal Gwent Cardiovascular Vivid System, Nevill Hall Designated Fund Purchases Intensive Care Chair, Intensive Care Unit, Royal Gwent Maxi-move Hoist, Monnow Vale OCT Machine, Ophthalmology Theatre, Royal Gwent Echo Storage System, Paediatrics, Aneurin Bevan University Local Health Board Minor Works Job Alterations to Reorganise Diabetes Clinic, Richmond House, Royal Gwent Page 10 of 14

12 Patients Welfare and Amenities Total expenditure on patients welfare and amenities was 133,000. This mainly consists of numerous therapies for patients (e.g. dance, art experiences), seasonal activities and various other items of expenditure to benefit patients both staying at and visiting hospital sites. It also includes the following bids approved by the Charitable Funds Committee: Volunteer Co-ordinator Role Volunteer Service, Complex Care Welcome Service at the Royal Gwent Garth Arts Project Staff Education and Welfare Total expenditure on staff education and welfare was 493,000. The main items consist of seminars, training course fees, textbooks, professional journals and related travelling, subsistence and accommodation expenditure. It also includes the following bids approved by the Charitable Funds Committee: Employee Well Being Support Service Staff Recognition Awards Event International Health Links Programme Investment Properties Investment properties owned by the charity are the T P Price Estate 78,000 and 13, Clytha Square, Newport 175,000. The T P Price Estate comprises a number of leasehold properties, allotments and various pockets of land. 13 Clytha Square, Newport is a large Victorian building in the centre of Newport which is rented to Aneurin Bevan University Local Health Board to use as offices. Income from the investment properties was 18,000 ( ,000). Investments on the Stock Exchange The charity s investments are managed by CCLA Investment Management Limited, with the aim of managing the funds to achieve a balance of growth and income. Page 11 of 14

13 The charity s investment policy does not allow managers to invest in those companies whose main business is related to the production or sale of tobacco or alcohol or those companies involved in the arms trade. Details of the investments (including cash held as part of the investment portfolio) and investment performance for are: CCLA 000 Balance 1 April ,572 Acquistions 0 Disposals 0 Movement of Cash 5 Realised Gains/(Loss) 0 Unrealised Gains/(Loss) 5 Balance 31 March ,582 Income 160 Gains/(Loss) % 0.14% Returns % 4.47% 10. Key Achievements Governance Arrangements Improvements in the governance arrangements of the charity that were initiated during the previous and earlier years were embedded. The Committee reviewed its set of Key Performance Indicators (KPI s), a mechanism of measuring the success of the Committee s strategy, particularly in relation to reducing static funds. Slow moving funds were reviewed and a number were followed up formally to request spending plans. Historically the accounts and trustees annual report have been produced on time with unqualified audit opinions and filed on time with the Charities Commission with 2013/14 being no different. Charitable Funds Strategy The Committee has developed a clear strategy to promote the use of donated funds within a reasonable time, deemed to be within two years of donation. KPI s to measure achievement of this were reviewed and demonstrated progress. Page 12 of 14

14 Particular attention was focused on those funds that had little or no activity. Only 13 funds are now classified as static and work is ongoing to encourage expenditure by those funds wherever possible. Approving Bids With the increased funding flexibility offered by the T P Price legacy and subsequent widening of the scope of the legacy the Committee was able to continue to approve bids from across the Health Board as demonstrated in item 9 above. Feedback from some of those individuals and teams who have been successful in applying for funding from the Committee is outlined below. The difference that this successful bid will make will be immediate for patients and will further enhance the environment and promote dignity and safety for our patients - Mental Health Manager This is great news to hear that our bid for the Staff Recognition Awards has been successful it will be a real chance for the Health Board to celebrate so many successes of its staff Manager in Workforce and OD We need to reiterate our appreciation for the support of the Committee that has been given to us over the years. You have made it possible to grow and broaden the programme and reach more people GARTH Project This is great news your support will make a real difference for our patients Mental Health Manager The Committee funding the Well Being Service is really welcomed. We all know how important these additional services are to both the staff and the organisation Well Being Service Being able to buy this new equipment is really good news this will make the environment for patients much more comfortable and help us to care for them Ward Sister Risks The Committee has now used a considerable amount of the T P Price Estate funds which will inevitably lead to fewer bids being approved in the coming year and more pressure being placed on the Health Board s internal capital programme. 11. Plans and Objectives for the Future Income received by the charity is due to the generosity of the public in response to appeals or in recognition of the care and treatment received Page 13 of 14

15 from the Health Board. The charity will continue to use its funds to improve patient experience. In the medium term the charity will continue to implement its strategy to increase expenditure and reduce the level of existing reserves held by: Increasing awareness of charitable funds across the organisation by visiting divisional and locality senior management teams, and promote the use of charitable funds by influencing fund holders to increase their expenditure and use funds within a reasonable time Creating flexibility by amalgamating funds to encourage better use of available resources Other objectives for the forthcoming year are: Continuing to review and approve bids Ensuring good governance arrangements are maintained and improved Ensuring that any accounting or charity regulatory requirements are fully complied with Continuing promoting the use of funds to ensure that funds are used within a reasonable timeframe Undertaking a consultation during May and June 2014 with fund holders and within the Health Board to agree proposals for the future strategy of the Committee and the ways in which funds will be managed and deployed across the Health Board for the future 12. Events since the Year End There are no significant events to note. Approved on behalf of the Corporate Trustee David Jenkins Chair Aneurin Bevan University Local Health Board Date: Page 14 of 14