CHARITABLE FUND TRUSTEES MEETING Wednesday 6 September 2017 Ynysmeurig House, Navigation Park, Abercynon Approx p.m.

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1 1 AGENDA 6 September 2017 PRELIMINARY MATTERS CHARITABLE FUND TRUSTEES MEETING Wednesday 6 September 2017 Ynysmeurig House, Navigation Park, Abercynon Approx p.m. AGENDA Attachment 1. Welcome and Introductions Oral 2. Apologies for Absence Oral 3. Declaration of Interests Oral 4. To receive the unconfirmed minutes of the meeting of the Trustees held on 5 October To consider matters arising from the minutes of the meeting held on 5 October Chair Attachment Chair Oral PRESENTATION 6. The Trustees will receive a presentation from Antonia Cavalier, CCLA, Charitable Funds Investment Manager. Presentation Attachment ITEMS FOR APPROVAL 7. Cwm Taf NHS General Charitable Fund Accounts and Annual Report for the year ended 31 st March 2017 Attachment OTHER MATTERS 8. Any Other Urgent Business Oral 9. Date of 2018 Meeting to be confirmed CHARITABLE FUND TRUSTEES MEETING 6 September /09/17 1 of 72

2 4 DRAFT Unconfirmed Minutes Charitable Fund Trustees meeting 5 October 2016 Agenda Item 4 MINUTES OF THE CHARITABLE FUND TRUSTEES MEETING HELD ON WEDNESDAY 5 OCTOBER 2016 IN YNYSMEURIG HOUSE, NAVIGATION PARK, ABERCYNON PRESENT: Dr C D V Jones - Chair Mrs A Williams - Chief Executive Prof. D Mead - Independent Member (Vice Chair) Ms J Dowden - Independent Member Mr S M Harrhy - Board Director Mr J. Hill-Tout - Independent Member Mr M Jehu - Independent Member Cllr C Jones - Independent Member Mrs G Jones - Independent Member Mr K Montague - Independent Member Mrs M K Thomas - Independent Member Ms R Treharne - Director of Planning & Performance Dr C Turner - Independent Member Mr S Webster - Director of Finance & Procurement Mr C White - Director of Therapies & Health Sciences / Chief Operating Officer Mrs L Williams - Director of Nursing, Midwifery & Patient Services IN ATTENDANCE: Mr R Williams - Board Secretary/Corporate Director Mrs A Jones - Public Health Wales Mr H Evans - Head of Corporate Finance Ms A Cavalier - CCLA Client relationship Manager (in Part) APOLOGIES FOR ABSENCE Apologies for absence were received from Mr K Asaad, Mrs J Davies, Mr J Palmer and Mr A. Seculer. CFT/16/01 WELCOME AND INTRODUCTIONS The Chairman welcomed everyone to the meeting and introduced Ms Antonia Cavalier, CCLA client relationship Manager, Investment Funds Manager for the Cwm Taf Charitable Funds. 1 2 of 72 CHARITABLE FUND TRUSTEES MEETING 6 September /09/17

3 4 DRAFT Unconfirmed Minutes Charitable Fund Trustees meeting 5 October 2016 CFT/16/02 DECLARATIONS OF INTEREST There were no additional declarations of interest, to those previously notified. CFT/16/03 CFT/16/04 MINUTES OF THE CHARITABLE FUND TRUSTEES MEETING HELD ON 4 NOVEMBER Members confirmed the minutes of the meeting held on 4 November 2015 as accurate, subject to the following corrections; Mr S M Harrhy s apologies to be NOTED and Mrs L Williams to be recorded as present. MATTERS ARISING FROM THE MINUTES OF THE CHARITABLE FUND TRUSTEES MEETING HELD ON 4 NOVEMBER Minute 15/05 Refers (Governance Arrangements for the General Charitable Fund) - Members NOTED that the Audit Committee were asked, on behalf of the Trustees, to consider a report outlining options as to whether the Health Board should invest in a fund raising team. Dr C Turner, Chair of Audit Committee informed members of the considerations of the options outlined in the report presented to Audit Committee in January The Audit Committee concluded that there would be little value in significantly investing more resource in a fund raising team, as the level of income generated may not exceed the level of investment. It was therefore recommended that the current resource would provide support where possible to ad-hoc campaigns. Mrs A Williams made reference to the excellent work being progressed by Mrs Clare Smart and Giving to Pink one of almost 100 Charitable Fund Accounts that sit within the overall Cwm Taf Account and considered the need to better exploit that brand in liaison with fund holders as its efforts over recent months were considered excellent. CFT/16/05 PRESENTATION FROM CCLA, CHARITABLE FUNDS INVESTMENT MANAGERS Members received a presentation from Ms Antonia Cavalier, Client Relationship Manager, CCLA on progress with investment management arrangements associated with Charitable Funds. Ms Cavalier explained in some detail the nature of the investment portfolio and the ethical investment funds selected for investment. Ms Cavalier explained the make up of the funds and outlined what is and what isn t included. Mr M Jehu sought clarity with regards the involvement of the pharmaceutical industry and Ms Cavalier confirmed that there was involvement of the industry although this was limited. 2 CHARITABLE FUND TRUSTEES MEETING 6 September /09/17 3 of 72

4 4 DRAFT Unconfirmed Minutes Charitable Fund Trustees meeting 5 October 2016 Members NOTED that an annual income of circa 40k per annum was being achieved against the level of investment 1m (an income yield of around 4%) which was considered reasonable. Over the longer term the target was to achieve a minimum 5% return on investment. Ms Cavalier outlined the costing arrangements for the type of funds held by Cwm Taf General Charitable Fund and how the related fee structure works. Members NOTED that there were no changes to the cost base from 2014/15. For the benefit of new Trustees on the Board, Mr S Webster explained one of the key attractions for selecting CCLA was their comparatively low cost base. Ms Cavalier emphasised the importance of her role in supporting the Trustees with their investment decisions and Members welcomed the information presentation of CCLA s approach in relation to Cwm Taf UHB. Members thanked Ms Cavalier for her informative presentation of the Cwm Taf General Charitable Fund investment portfolio and related progress with the investment arrangements over the last year. Members RESOLVED to; NOTE the presentation from CCLA and agree that the Audit Committee continue to oversee related progress with the investment fund management on behalf of the Trustees. CFT/16/06 CWM TAF NHS GENERAL CHARITABLE FUND ACCOUNTS AND ANNUAL REPORT FOR THE YEAR ENDED 31 ST MARCH 2016 The report of the Director of Finance presented by Mr Huw Evans providing an update on the General Charitable Fund Accounts and Annual Report for the year ended 31 March 2016, was received. In summarising the implications of the investment decisions, which had gone down in the year and recovered more recently, Mr S Webster explained that in collaboration with CCLA who had expertise in these areas, the Board was risk managing its investment portfolio to mitigate and even out the impact of any losses. Mr H Evans informed Members that the Annual Report and Accounts had been examined by the Wales Audit Office and there were no issues to report to the Members. Dr C Turner, Chair of Audit Committee reassured Trustees of the routine review of Charitable funds at every Audit Committee meeting and the focus of the Committee on expenditure plans. 3 4 of 72 CHARITABLE FUND TRUSTEES MEETING 6 September /09/17

5 4 DRAFT Unconfirmed Minutes Charitable Fund Trustees meeting 5 October 2016 Mr H Evans confirmed that the Auditor General for Wales will be signing the accounts on 11 October Following discussion the Charitable Fund Committee RESOLVED to: APPROVE the Annual Report and Accounts for Authorise the Chairman and Director of Finance (as financial trustee) to sign off the Annual Report and Annual Accounts for the year ended 31 March 2016, on behalf of the Cwm Taf NHS Charitable Fund Trustees. CFT/16/07 ANY OTHER BUSINESS There was no other business. CFT/16/08 DATE OF NEXT MEETING To be held in 12 months with a view to reconvene if fund raising issues required the Committee to do so... Dr C D V JONES. DATE (5 October 2016) 4 CHARITABLE FUND TRUSTEES MEETING 6 September /09/17 5 of 72

6 6 of 72 CHARITABLE FUND TRUSTEES MEETING 6 September /09/17 Investment Update to the Cwm Taf NHS General Charitable Fund 6 The Trustees will receive a presentation from Antonia Cavalier, CCLA Charitable Funds Investment Manager 6 th September 2017 Antonia Cavalier, Client Relationship Manager

7 CHARITABLE FUND TRUSTEES MEETING 6 September /09/17 Portfolio valuation Holdings Market value Income yield Annual income COIF Charities Ethical Investment Fund 1,767, % 61,020 TOTAL PORTFOLIO 1,767, % 61,020 6 The Trustees will receive a presentation from Antonia Cavalier, CCLA Charitable Funds Investment Manager Please note that this portfolio valuation is not intended for audit purposes. Please see valuation risk warning at the end of this presentation. Source CCLA as at of 72 Page 2

8 8 of 72 CHARITABLE FUND TRUSTEES MEETING 6 September /09/17 Market review 12 month returns to 31 July % +20% +15% +10% +5% +0% -5% -10% 31/07/ /10/ /01/ /04/ /07/ The Trustees will receive a presentation from Antonia Cavalier, CCLA Charitable Funds Investment Manager UK Equities % Global Equities % UK Government Bonds -2.77% Cash +0.12% Inflation +3.50% UK Commercial Property +5.07% Source: CCLA Page 3

9 CHARITABLE FUND TRUSTEES MEETING 6 September /09/17 Changes in interest rate expectations Changes in interest rate expectations The Trustees will receive a presentation from Antonia Cavalier, CCLA Charitable Funds Investment Manager Implied Rate Implied Rate Implied Rate Source: Bloomberg / CCLA as at , and of 72 Page 4

10 10 of 72 CHARITABLE FUND TRUSTEES MEETING 6 September /09/17 COIF Charities Ethical Investment Fund: Long-term investment objective Over the long term to achieve an average annual total return of inflation plus 5% To provide as part of this return a reliable income stream that maintains its real value over time Control volatility to 75% of that of the UK equity market The ethical investment policy is set every three years after client-consultation. The Fund s policy includes a mix of ethical restrictions, client-led stewardship and positive investment 6 The Trustees will receive a presentation from Antonia Cavalier, CCLA Charitable Funds Investment Manager

11 CHARITABLE FUND TRUSTEES MEETING 6 September /09/17 COIF Charities Ethical Investment Fund A suitable all-in-one long-term fund for most charities Highly diversified and well balanced spread of investments Focus on delivering attractive, growing income over time Managed to meet clear ethical and responsible investment standards Current yield 3.55%* Fund size 378m Source CCLA as at 30 June 2017 Infrastructure & Operating Assets 9.0% * Based upon mid-market price as at 30 June 2017 and an estimated annual distribution of 7.79p per unit Private Equity & Other 3.0% Contractual & Other Income 4.0% Property 4.0% UK Equities 26.4% Asset allocation Fixed Interest 0.3% Cash 5.6% Overseas Equities 47.6% Overseas Equity % North America 26.4 Europe ex UK 12.9 Japan 3.9 Asia Pacific ex Japan 3.8 Latin America The Trustees will receive a presentation from Antonia Cavalier, CCLA Charitable Funds Investment Manager 11 of 72 Page 6

12 12 of 72 CHARITABLE FUND TRUSTEES MEETING 6 September /09/17 COIF Charities Ethical Investment Fund Changes in asset allocation 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 6 The Trustees will receive a presentation from Antonia Cavalier, CCLA Charitable Funds Investment Manager United Kingdom Equities Overseas Equities Private Equity & Other Infrastructure & Operating Assets Real Estate Contractual & Other Income Fixed Interest Cash & Near Cash Ccy Hedging Source: CCLA as at 30 June 2017 Page 7

13 CHARITABLE FUND TRUSTEES MEETING 6 September /09/17 COIF Charities Ethical Investment Fund Gross 1 year returns % as at 30 June % 15.0% 10.0% 5.0% 0.0% COIF Charities Ethical Investment Fund Comparator* CPI plus 5% 6 The Trustees will receive a presentation from Antonia Cavalier, CCLA Charitable Funds Investment Manager Source: CCLA as at 30 June 2017 * Comparator - Composite: From MSCI UK Investable Market Index, 45%; MSCI Europe ex UK Index, 10%; MSCI North America Index,10%; MSCI Pacific Index, 10%; IPD All Properties Index, 5%; Markit iboxx Gilts Index, 15% and 7 day LIBID, 5%. From to MSCI UK All Cap 45%, MSCI Europe Ex UK (50% Hedged) 10%, MSCI North America (50% Hedged) 10%, MSCI Pacific (50% Hedged) 10%, IPD All Properties 5%, BarCap Gilt 15% & 7 Day LIBID 5%. Performance is shown gross of management fees and expenses on a mid to mid basis: net returns will differ after the deduction of fees and charges. Past performance is not an indication of future performance. Values of investments, and any income derived from them, may fall as well as rise and you may not get back the amount you invested. 13 of 72 Page 8

14 14 of 72 CHARITABLE FUND TRUSTEES MEETING 6 September /09/17 COIF Charities Ethical Investment Fund Annualised returns % as at 30 June year 3 years 5 years COIF Charities Ethical Investment Fund (Gross) Comparator* CPI plus 5% COIF Charities Ethical Investment Fund (Net) ARC Steady Growth Charity Index The Trustees will receive a presentation from Antonia Cavalier, CCLA Charitable Funds Investment Manager Source: CCLA and ARC as at 30 June * Comparator - Composite: From MSCI UK Investable Market Index, 45%; MSCI Europe ex UK Index, 10%; MSCI North America Index,10%; MSCI Pacific Index, 10%; IPD All Properties Index, 5%; Markit iboxx Gilts Index, 15% and 7 day LIBID, 5%. From to MSCI UK All Cap 45%, MSCI Europe Ex UK (50% Hedged) 10%, MSCI North America (50% Hedged) 10%, MSCI Pacific (50% Hedged) 10%, IPD All Properties 5%, BarCap Gilt 15% & 7 Day LIBID 5%. Performance is shown gross and net of management fees and expenses on a mid to mid basis. Past performance is not an indication of future performance. Values of investments, and any income derived from them, may fall as well as rise and you may not get back the amount you invested. Page 9

15 CHARITABLE FUND TRUSTEES MEETING 6 September /09/17 COIF Charities Ethical Investment Fund Risk and return vs peer group 3 Year Absolute Risk and Return 6 The Trustees will receive a presentation from Antonia Cavalier, CCLA Charitable Funds Investment Manager Source: Asset Risk Consultants Ltd as at 30 June of 72 Page 10

16 16 of 72 CHARITABLE FUND TRUSTEES MEETING 6 September /09/17 COIF Charities Ethical Investment Fund Policy The ethical investment policy is set every three years after client-consultation. The Fund s policy includes a mix of ethical restrictions, client-led stewardship and positive investment Ethical restrictions are targeted on our clients real concerns. They include: Extractives and utilities sector companies who are lagging behind the transition to a low carbon economy Companies supporting the world s most oppressive regimes Traditional ethical factors (such as alcohol, tobacco, armaments and high interest rate lending) and particular restrictions for specialist charity groups (full details of restrictions in the appendix). By 2018 we hope to have allocated 5% of the Fund s capital to investments that have a positive environmental and/or social benefit 6 The Trustees will receive a presentation from Antonia Cavalier, CCLA Charitable Funds Investment Manager Page 11

17 CHARITABLE FUND TRUSTEES MEETING 6 September /09/17 Full COIF Charities Ethical Investment Fund Restrictions Theme Climate Change Armaments Further Details Oil sands extraction 10% Energy coal extraction 10% Extractives and utility sector companies Nuclear weapons, landmines, cluster munitions Strategic military sales 10% Non-military firearms 10% Exclusion Criteria (% revenue as defined by MSCI unless noted) Scored CDP Climate Grade below C Where engagement is not possible Any involvement Oppressive Regimes North Korea, Sudan and Syria Equity involvement (MSCI definition) Tobacco 10% Alcohol 10% Pornography 10% Gambling 10% High Interest Rate Lending As per the Church of England definition 10% Specific client group requirements Baby milk substitutes Production of abortifacients FTSE4Good Index screen Any involvement ESG Minimum Standards Score less than 2 on any FTSE ESG Theme Comply/explain approach 6 The Trustees will receive a presentation from Antonia Cavalier, CCLA Charitable Funds Investment Manager Third Party Funds In house approach to considering eligibility 17 of 72 Page 12

18 18 of 72 CHARITABLE FUND TRUSTEES MEETING 6 September /09/17 Key dates for your calendar Invitation for future events in 2017 Michael Quicke, Chief Executive CCLA Investment Management Limited is pleased to invite you to an afternoon and evening examining the future outlook of long-term investments for UK charities. Please choose from one of the dates and locations below to suit you: Date Venue 21 September 2017 Birmingham 12 October 2017 Bristol 9 November 2017 Derby 7 December 2017 Plymouth A review of the prospects for the economy and the major investment sectors what should you be doing with your portfolio? Key pointers on managing your charity s investments. Sector focus: A closer look at investment opportunities. Ethical and responsible investment update 6 The Trustees will receive a presentation from Antonia Cavalier, CCLA Charitable Funds Investment Manager TO BOOK YOUR PLACE ccla@eesolutions.co.uk or visit our website Page 13

19 CHARITABLE FUND TRUSTEES MEETING 6 September /09/17 Reference section 6 The Trustees will receive a presentation from Antonia Cavalier, CCLA Charitable Funds Investment Manager 19 of 72 Page 14

20 20 of 72 CHARITABLE FUND TRUSTEES MEETING 6 September /09/17 The COIF Charity Funds fees and costs The cost of running your portfolio of COIF funds depends on which funds you hold See the table on the next page to show the estimated costs associated with each fund The main ongoing cost for each fund is the annual management charge payable to CCLA Each fund also bears smaller costs such as irrecoverable VAT, governance, transaction costs, and fees paid to any third party managers. The ongoing charge total consists of the annual management charge plus these operational costs The bid-offer spread, under which you pay slightly more to buy a unit than you receive when you sell one, reflects the actual cost to the fund of buying and selling units. CCLA does not take any revenue from these transactions 6 The Trustees will receive a presentation from Antonia Cavalier, CCLA Charitable Funds Investment Manager Page 15

21 CHARITABLE FUND TRUSTEES MEETING 6 September /09/17 The COIF Charity Funds latest published fees and costs COIF Charity Funds Annual Management Charge (AMC) Ongoing Charges Figure (OCF)* Investment Fund 0.60% 0.75% Ethical Fund 0.60% 0.76% Fixed Interest Fund 0.22% 0.29% Property Fund** 0.65% 0.72% Global Equity Income Fund 0.75% 0.97% Deposit Fund 0.20% 0.26% 6 The Trustees will receive a presentation from Antonia Cavalier, CCLA Charitable Funds Investment Manager * The difference between the AMC and the OCF consists of irrecoverable taxes (including VAT), legal, audit, custody and other third party costs. The OCFs quoted above are taken from the latest Report & Accounts and are not a guarantee of future OCFs which are subject to change. ** VAT charged to the property fund is recoverable. The funds have no entry or exit charges. Instead there is a spread between the selling price and the buying price of units in each fund. This is to ensure that the administrative cost of buying and selling units is borne by the transacting investors, not by investors with unchanged unit holdings. 21 of 72 Page 16

22 22 of 72 CHARITABLE FUND TRUSTEES MEETING 6 September /09/17 Our investment approach: equity selection Global stock universe Stage 1: Quantitative screen Long list based on key criteria 350 companies Stage 2: Validation Short list for inclusion companies Investment portfolio c100 companies We seek: - high or improving returns on capital - financial stability - sustainable free cash flow - strong competitive position Disciplined 2 stage process applied to all equities - consistency - research efficiency Integrated analysis of ESG factors is key element of risk management Sticking with quality and avoiding unwarranted risks 6 The Trustees will receive a presentation from Antonia Cavalier, CCLA Charitable Funds Investment Manager Page 17

23 CHARITABLE FUND TRUSTEES MEETING 6 September /09/17 We are not limited to traditional assets there are good opportunities in alternative areas Asset classes where there is a contractual nature to cash flows property infrastructure Attractive income returns plus capital value of physical assets typically low correlation to equity returns Supportive economic and policy environment clear need for infrastructure spending in both developed and emerging markets strong investor appetite But there are risks politics, returns, valuation 6 The Trustees will receive a presentation from Antonia Cavalier, CCLA Charitable Funds Investment Manager Need to consider means of access & liquidity 23 of 72 Page 18

24 24 of 72 CHARITABLE FUND TRUSTEES MEETING 6 September /09/17 Economics of Obesity Direct costs Global - Total global economic impact of obesity is about $2trn/yr, 2.8% of world GDP, Nov 14 McKinsey Global Institute (MGI) UK - The combined annual direct costs of treating overweight, obese and diabetes patients is 14% of NHS budget. Indirect costs (reduced productivity) Global: Morgan Stanley - reduced workforce and lower productivity (via early death, poorer performance at work) can significantly affect economic growth relative to baseline projections 18% average drag on OECD forecasts to 2035 UK: McKinsey Global Institute analysed the indirect cost, through loss in employee productivity in the UK, to be 7bn per annum, of which... 5bn comes from decreased productivity rather than absenteeism This makes obesity a long-term risk for all companies 6 The Trustees will receive a presentation from Antonia Cavalier, CCLA Charitable Funds Investment Manager Page 19

25 CHARITABLE FUND TRUSTEES MEETING 6 September /09/17 Health engagement to date: nutrition Set minimum standards addressing fat, salt and calorie reduction, in line with the UK PHRD* engagement with prioritised companies in our portfolio, particular focus on out of home dining. Outcomes * PHRD: Public Health Responsibility Deal Signed up to three additional food pledges on the PHRD Commenced printing calories on its menus Salad and vegetables as an alternative to fries with all children s meals Board agenda now includes nutrition and health New nutrition and health working group that meets fortnightly Nutrition is now acknowledged as a principal risk to the business Nutritional data on back lit POS boards Altered soft drink range, leading with zero sugar. Encouraging the restaurant sector to address nutrition 6 The Trustees will receive a presentation from Antonia Cavalier, CCLA Charitable Funds Investment Manager 25 of 72 Page 20

26 26 of 72 CHARITABLE FUND TRUSTEES MEETING 6 September /09/17 Valuation disclosure COIF Charity Funds There is no initial charge. Annual management expenses (accrued daily, paid monthly) due to CCLA on the COIF Charity Funds are deducted before declaration of distributions and interest. The expenses of the Investment Fund, Global Equity Income Fund and Property Fund are taken from capital. The expenses of the Fixed Income Securities Fund and the Deposit Fund are taken from income. Fund charges applied to capital may result in capital erosion. Holdings in the Investment Fund, UK Equity Fund, Global Equity Income Fund and the Fixed Interest Securities Fund are valued at the mid market price. Holdings in the Property Fund are valued based on the net asset value of a share. Please note that income yields or forecast annual income is not guaranteed and can change over time due to changes in fund constituents, interest rates and the average maturity date of the securities held by a fund. The income yield on the Fixed Interest Fund is an indication of the expected level of Income. 6 The Trustees will receive a presentation from Antonia Cavalier, CCLA Charitable Funds Investment Manager

27 CHARITABLE FUND TRUSTEES MEETING 6 September /09/17 Disclosure - All COIF Funds Investment in the COIF Charity Funds is only available to charities within the meaning of section 96 or 100 of the Charities Act Past performance is not an indicator of future performance. The value of investments and the income derived from them may fall as well as rise. Investors may not get back the amount originally invested and may lose money. The properties within the COIF Charities Property Fund are valued by an external property valuer; any such valuations are a matter of opinion rather than fact. The performance of the Fund may be adversely affected by a downturn in the property market which could impact on the value of the Fund. Any forward looking statements are based upon our current opinions, expectations and projections. We undertake no obligations to update or revise these. Actual results could differ materially from those anticipated. Depositors in the COIF Charities Deposit Fund should note that CCLA may change the fund documentation to allow for negative interest rates to be passed on to depositors. This means that in the event that interest rates on sterling deposit and instruments become negative, depositors may be charged these negative interest rates instead of earning interest. The COIF Charity Funds are approved by the Charity Commission as Common Investment Funds under section 24 of the Charities Act 1993, the COIF Charities Deposit Fund is approved by the Charity Commission as a Common Deposit Fund under section 25 of the Charities Act 1993 and are Unregulated Collective Investment Scheme and Alternative Investment Funds. Investments in the COIF Charity Funds and the Funds, and Investments and Deposits in the COIF Charities Deposit Fund and COIF Charities Property Fund and the Funds are not covered by the Financial Services Compensation Scheme (FSCS). However, the Manager may pay fair compensation on eligible claims arising from its negligence or error in the management and administration of the Funds. CCLA Fund Managers Limited (registered in England No at Registered office Senator House, 85 Queen Victoria Street, London EC4V 4ET) is authorised and regulated by the Financial Conduct Authority and is the manager of the COIF Charity Funds (Registered Charity Nos , , , , and ). 6 The Trustees will receive a presentation from Antonia Cavalier, CCLA Charitable Funds Investment Manager 27 of 72

28 6 The Trustees will receive a presentation from Antonia Cavalier, CCLA Charitable Funds Investment Manager 28 of 72 CHARITABLE FUND TRUSTEES MEETING 6 September /09/17 Senator House 85 Queen Victoria Street London EC4V 4ET

29 7 Accounts and Annual Report cover report AGENDA ITEM 7 6 September 2017 Charitable Fund Trustees Committee Report CWM TAF NHS GENERAL CHARITABLE FUND ACCOUNTS AND ANNUAL REPORT FOR THE YEAR ENDED 31 ST MARCH 2017 Executive Lead: Director of Finance Author: Head of Finance Contact Details for further information: Huw Evans on or huw.evans2@wales.nhs.uk Purpose of the Charitable Fund Trustees Committee Report To present the Annual report and Accounts of the Cwm Taf NHS General Charitable Fund for approval. Governance Link to Health Board Strategic Objective(s) Supporting evidence To improve governance and assurance Annual Accounts 2016/17 Annual Report to Charity Commissioner Engagement Who has been involved in this work? Accounts examined by Wales Audit Office Charitable Fund Trustees Committee Resolution to: APPROVE ENDORSE DISCUSS NOTE Recommendation The Trustees to the Cwm Taf NHS Charitable Fund are requested to: that their stance on the charity not APPROVE the annual report and accounts AUTHORISE the Chairman to sign the annual report and accounts on their behalf. CONFIRM seeking independent status remains unchanged General Charitable Fund Accounts and Annual Report for the year ended 31 March 2017 Page 1 of 4 Charitable Fund Trustees Meeting 6 September 2017 CHARITABLE FUND TRUSTEES MEETING 6 September /09/17 29 of 72

30 7 Accounts and Annual Report cover report Summarise the Impact of the Charitable Fund Trustees Report Equality and diversity Legal implications Population Health Quality, Safety & Patient Experience Resources Risks and Assurance Health and Care Standards Workforce Freedom of information status There are no specific equality and diversity issues Charitable funds are required to be managed in accordance with charity legislation and requirements of the Charity Commissioner. This includes the production of accounts and annual report. No specific population health issues No specifiv quality, safety or patient experience issues The accounts highlights the resources received and the use of those resources for in accordance with Welsh Government and Charity Commission requirements The report is a key element of the charitable funds governance and assurance process, and which enables Trustees to discharge their responsibilities over the management of the charitable fund. The 22 Health & Care Standards for NHS Wales are mapped into the 7 Quality Themes: Staying Healthy Safe Care Effective Care Dignified Care Timely Care Individual Care Staff & Resources 064/24729_Health%20Standards%20Framework _2015_E1.pdf The work reported in this summary and related annexes take into account many of the related quality themes No specific workforce implications Open General Charitable Fund Accounts and Annual Report for the year ended 31 March 2017 Page 2 of 4 Charitable Fund Trustees Meeting 6 September of 72 CHARITABLE FUND TRUSTEES MEETING 6 September /09/17

31 7 Accounts and Annual Report cover report CWM TAF NHS GENERAL CHARITABLE FUND ACCOUNTS AND ANNUAL REPORT FOR THE YEAR ENDED 31 ST MARCH SITUATION / PURPOSE OF REPORT This report presents the Annual report and Accounts of the Cwm Taf NHS General Charitable Fund for approval. 2. BACKGROUND / INTRODUCTION The registered charity Cwm Taf NHS General Charitable Fund requires annual accounts and an annual report to be prepared and submitted to the Charity Commission prior to the 31 st January The Board act as Trustees to this fund and this report is therefore presented in this capacity. The format of the Accounts has remained unchanged from last year. 3. ASSESSMENT OF GOVERNANCE AND RISK ISSUES Annual accounts and an annual report for the period 1 st April 2016 to 31 st March 2017 have been prepared by Cwm Taf UHB and then examined by the Wales Audit Office. These are attached to this report as Appendices 1 & 2. The accounts have been subject to independent examination by WAO. No issues have arisen from the examination, and an unqualified opinion is being proposed. The examiner s proposed report is attached as Appendix 3. The Welsh Government has issued a discussion document at Appendix 4 seeking views regarding the potential alignment of NHS Charities within the Welsh Government boundary, and whether there is any emerging appetite within NHS Wales to consider seeking independent status as has been seen within some NHS Charities in England. Previous representations to Trustees confirmed there was no appetite for gaining independent status, primarily due to the costs involved in relation to the value of funds being held, and the perceived risk of transferring control to an independent body. This stance is supported by the fact that only 18 of the larger NHS Charities in England (and none in Wales) have pursued this option since General Charitable Fund Accounts and Annual Report for the year ended 31 March 2017 Page 3 of 4 Charitable Fund Trustees Meeting 6 September 2017 CHARITABLE FUND TRUSTEES MEETING 6 September /09/17 31 of 72

32 7 Accounts and Annual Report cover report Trustees are asked to re-affirm their stance on this issue. Any future progress on this topic will be reported via Audit Committee as part of the normal reporting process. 4. RECOMMENDATION The Trustees to the Cwm Taf NHS Charitable Fund are requested to: a) APPROVE the annual report and accounts; and b) AUTHORISE the Chairman to sign the annual report and accounts on their behalf. c) CONFIRM that their stance on the charity not seeking independent status remains unchanged. Freedom of information status Open General Charitable Fund Accounts and Annual Report for the year ended 31 March 2017 Page 4 of 4 Charitable Fund Trustees Meeting 6 September of 72 CHARITABLE FUND TRUSTEES MEETING 6 September /09/17

33 7.1 Appendix 1 Spreadsheet of Charity Accounts APPENDIX 1 Cwm Taf NHS General Charitable Fund ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2017 CHARITABLE FUND TRUSTEES MEETING 6 September /09/17 33 of 72

34 7.1 Appendix 1 Spreadsheet of Charity Accounts of 72 CHARITABLE FUND TRUSTEES MEETING 6 September /09/17

35 7.1 Appendix 1 Spreadsheet of Charity Accounts Cwm Taf NHS General Charitable Fund ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2017 FOREWORD The accounts (financial statements) have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued on 16 July 2014 and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011 and UK Generally Accepted Practice as it applies from 1 January 2015 STATUTORY BACKGROUND The Cwm Taf University Health Board is the corporate trustee of the charity under paragraph 16c of Schedule 2 of the NHS and Community Care Act The Trustees have been appointed under s11 of the NHS and Community Care Act MAIN PURPOSE OF THE FUNDS HELD ON TRUST The main purpose of the charity is to apply income for any charitable purposes relating to the National Health Service wholly or mainly for the services provided by the Cwm Taf University Health Board. CHARITABLE FUND TRUSTEES MEETING 6 September /09/17 35 of 72

36 7.1 Appendix 1 Spreadsheet of Charity Accounts Cwm Taf General Charitable Fund Statement of Financial Activities for the year ended 31 March 2017 Restricted Total Unrestricted Income Endowment Funds funds funds funds Note Incoming resources from generated funds: Donations and legacies Charitable activities Other trading activities Investments Other Total incoming resources Expenditure on: Raising Funds Charitable activities Other Total expenditure Net gains / (losses) on investments Net income / (expenditure) Transfer between funds Net movement in funds Reconciliation of Funds Total Funds brought forward ,305 Total Funds carried forward 1, ,046 Cwm Taf General Charitable Fund Statement of Financial Activities for the year ended 31 March 2016 Restricted Total Unrestricted Income Endowment Funds funds funds funds Note Incoming resources from generated funds: Donations and legacies Charitable activities Other trading activities Investments Other 0 Total incoming resources Expenditure on: Raising Funds Charitable activities Other Total expenditure Net gains / (losses) on investments (41) 0 0 (41) Net income / (expenditure) (78) Transfer between funds Net movement in funds (78) Reconciliation of Funds Total Funds brought forward ,209 Total Funds carried forward , of 72 CHARITABLE FUND TRUSTEES MEETING 6 September /09/17

37 7.1 Appendix 1 Spreadsheet of Charity Accounts Cwm Taf General Charitable Fund Balance Sheet as at 31 March 2017 Restricted Total Total Unrestricted Income Endowment 31 March 31 March funds funds funds ,016 Note Fixed assets: Investments , Total fixed assets , Current assets: Debtors Cash and cash equivalents Total current assets Liabilities: Creditors: Amounts falling due within one year 16 (33) (22) 0 (55) (79) Net current assets / (liabilities) Total assets less current liabilities 1, ,046 1,305 Creditors: Amounts falling due after more than one year Total net assets / (liabilities) 1, ,046 1,305 The funds of the charity: Endowment Funds Restricted income funds Unrestricted income funds 19 1,110 1, Total funds 1, ,046 1,305 The notes on pages 5 to 15 form part of these accounts Signed :... Name :...(Chair of Trustees) Date :... CHARITABLE FUND TRUSTEES MEETING 6 September /09/17 37 of 72

38 7.1 Appendix 1 Spreadsheet of Charity Accounts Cwm Taf General Charitable Fund Statement of Cash Flows for the year ending 31 Marc Total Total Funds Funds Note Cash flows from operating activities: Net cash provided by (used in) operating activities Cash flows from investing activities: Dividend, interest and rents from investments Proceeds from the sale of investments Purchase of investments 13 (640) (60) Net cash provided by (used in) investing activities (593) (25) Change in cash and cash equivalents in the (67) 64 reporting period Cash and cash equivalents at the begining of the reporting period Cash and cash equivalents at the end of the reporting period 38 of 72 CHARITABLE FUND TRUSTEES MEETING 6 September /09/17

39 7.1 Appendix 1 Spreadsheet of Charity Accounts Note on the accounts 1 Accounting Policies (a) Basis of preparation The financial statements have been prepared under the historic cost convention, with the exception of investments which are included at fair value. The accounts (financial statements) have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued on 16 July 2014 and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011 and UK Generally Accepted Practice as it applies from 1 January The accounts (financial statements) have been prepared to give a true and fair view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued on 16 July 2014 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn. The Trustees consider that there are no material uncertainties about the Charity's ability to continue as a going concern. There are no material uncertainties affecting the current year s accounts. In future years, the key risks to the Charity are a fall in income from donations or investment income but the trustees have arrangements in place to mitigate those risks (see the risk management and reserves sections of the annual report for more information). The Charity meets the definition of a public benefit entity under FRS 102. CHARITABLE FUND TRUSTEES MEETING 6 September /09/17 39 of 72

40 7.1 Appendix 1 Spreadsheet of Charity Accounts (b) Funds structure Where there is a legal restriction on the purpose to which a fund may be put, the fund is classified either as: A restricted fund or An endowment fund. Restricted funds are those where the donor has provided for the donation to be spent in furtherance of a specified charitable purpose. The Charity s restricted funds tend to result from appeals or legacies for specified purposes. Endowment funds arise when the donor has expressly provided that the gift is to be invested and only the income of the fund may be spent. These funds are sub analysed between those where the Trustees have the discretion to spend the capital (expendable endowment) and those where there is no discretion to expend the capital (permanent endowment). Those funds which are neither endowment nor restricted income funds, are unrestricted income funds which are sub analysed between designated (earmarked) funds where the Trustees have set aside amounts to be used for specific purposes or which reflect the non-binding wishes of donors and unrestricted funds which are at the Trustees discretion, including the general fund which represents the charity s reserves. The major funds held in each of these categories are disclosed in note 19. (c) Incoming resources Income consists of donations, legacies, income from charitable activities and investment income. Donations are accounted for when received by the charity. All other income is recognised once the charity has entitlement to the resources, it is probable (more likely than not) that the resources will be received and the monetary value of incoming resources can be measured with sufficient reliability. Where there are terms or conditions attached to incoming resources, particularly grants, then these terms or conditions must be met before the income is recognised as the entitlement condition will not be satisfied until that point. Where terms or conditions have not been met or uncertainty exists as to whether they can be met then the relevant income is not recognised in the year but deferred and shown on the balance sheet as deferred income. (d) Incoming resources from legacies Legacies are accounted for as incoming resources either upon receipt or where the receipt of the legacy is probable, whichever falls sooner. Receipt is probable when: Confirmation has been received from the representatives of the estate(s) that probate has been granted The executors have established that there are sufficient assets in the estate to pay the legacy and All conditions attached to the legacy have been fulfilled or are within the charity s control. If there is uncertainty as to the amount of the legacy and it cannot be reliably estimated then the legacy is shown as a contingent asset until all of the conditions for income recognition are met. 6(Note 1) 40 of 72 CHARITABLE FUND TRUSTEES MEETING 6 September /09/17

41 7.1 Appendix 1 Spreadsheet of Charity Accounts (e) Incoming resources from endowment funds The Charity has not received nor does it hold any endowment funds. (f) Resources expended and irrecoverable VAT All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to each category of expense shown in the Statement of Financial Activities. Expenditure is recognised when the following criteria are met: There is a present legal or constructive obligation resulting from a past event It is more likely than not that a transfer of benefits (usually a cash payment) will be required in settlement The amount of the obligation can be measured or estimated reliably. Irrecoverable VAT is charged against the category of resources expended for which it was incurred. (g) Recognition of expenditure and associated liabilities as a result of grants Grants payable are payments made to linked, related party or third party NHS bodies and non NHS bodies, in furtherance of the charitable objectives of the funds held on trust, primarily relief of those who are sick. Grant payments are recognised as expenditure when the conditions for their payment have been met or where there is a constructive obligation to make a payment. A constructive obligation arises when: We have communicated our intention to award a grant to a recipient who then has a reasonable expectation that they will receive a grant We have made a public announcement about a commitment which is specific enough for the recipient to have a reasonable expectation that they will receive a grant There is an established pattern of practice which indicates to the recipient that we will honour our commitment. The Trustees have control over the amount and timing of grant payments and consequently where approval has been given by the trustees and any of the above criteria have been met then a liability is recognised. Grants are not usually awarded with conditions attached. However, when they are then those conditions have to be met before the liability is recognised. Where an intention has not been communicated, then no expenditure is recognised but an appropriate designation is made in the appropriate fund. If a grant has been offered but there is uncertainty as to whether it will be accepted or whether conditions will be met then no liability is recognised but a contingent liability is disclosed. (h) Allocation of support costs Support costs are those costs which do not relate directly to a single activity. These include staff costs, costs of administration, internal and external audit costs. Support costs have been apportioned between fundraising costs and charitable activities on an appropriate basis. The analysis of support costs and the bases of apportionment applied are shown in note 10. (i) Fundraising costs The costs of generating funds are those costs attributable to generating income for the charity, other than those costs incurred in undertaking charitable activities or the costs incurred in undertaking trading activities in furtherance of the charity s objects. Cwm Taf NHS General Charitable Fund does not currently undertake any fund raising activity. CHARITABLE FUND TRUSTEES MEETING 6 September /09/17 41 of 72

42 7.1 Appendix 1 Spreadsheet of Charity Accounts (j) Charitable activities Costs of charitable activities comprise all costs incurred in the pursuit of the charitable objects of the charity. These costs, where not wholly attributable, are apportioned between the categories of charitable expenditure in addition to the direct costs. The total costs of each category of charitable expenditure include an apportionment of support costs as shown in note 7. (k) Debtors Debtors are amounts owed to the charity. They are measured on the basis of their recoverable amount. (l) Fixed Asset Investments Investments are a form of basic financial instrument. Fixed Asset investments are initially recognised at their transaction value and are subsequently measured at their fair value (market value) at the balance sheet date. The Statement of Financial Activities includes the net gains and losses arising on revaluation and disposal throughout the year. Quoted stocks and shares are included in the Balance Sheet at the current mid price market value quoted by the investment analyst, excluding dividend. The SORP recommends that the bid price market price be used in valuing stocks and shares, although the difference between the bid and mid market price is not material. Other investments are included at the trustees' best estimate of market value. The main form of financial risk faced by the charity is that of volatility in equity markets and investment markets due to the wider economic conditions, the attitude of investors to investment risk and changes in sentiment concerning equities and within particular sectors or sub sectors. Further information on the charity's investments can be found in note 13. (m) Cash and cash equivalents Cash at bank and in hand is held to meet the day to day running costs of the charity as they fall due. Cash equivalents are short term, highly liquid investments, are invested in a long-term plan under charities ethical investment fund. (n) Creditors Creditors are amounts owed by the charity. They are measured at the amount that the charity expects to have to pay to settle the debt. Amounts which are owed in more than a year are shown as long term creditors. (o) 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 carrying value (purchase date if later). Unrealised gains and losses are calculated as the difference between the market value at the year end and opening carrying value (or purchase date if later). 42 of 72 CHARITABLE FUND TRUSTEES MEETING 6 September /09/17

43 7.1 Appendix 1 Spreadsheet of Charity Accounts Income from donations and legacies Restricted Total Total Unrestricted Income Endowment funds funds funds Donations Legacies Grants The Charity received a very generous legacy from the Late Mr Edward Rees Davies of 500k during the year. This bequest will be shared equally for the benefit of patients being cared for at Ysbyty Cwm Cynon and for the care and treatment of stroke patients across Cwm Taf University Health Board. It is expected that a further residual legacy will be received during CHARITABLE FUND TRUSTEES MEETING 6 September /09/17 43 of 72

44 7.1 Appendix 1 Spreadsheet of Charity Accounts Gross investment income Restricted Total Total Unrestricted Income funds funds Fixed asset equity and similar investments Short term investments, deposits and cash on deposit Analysis of expenditure on raising funds Restricted Total Total Unrestricted Income funds funds Fundraising office Fundraising events Investment management Support costs Analysis of charitable activity Grant funded Support Total Total activity costs Medical research Purchase of new equipment Bulding and refurbishment Staff education and welfare Patient education and welfare Other Note 10 sets out an analysis of support costs. 8.Analysis of grants The Charity does not make grants to individuals. All grants are made to Cwm Taf Health Board to provide for the care of NHS patients in furtherance of our charitable aims. The total cost of making grants, including support costs, is disclosed on the face of the Statement of Financial Activities and the actual funds spent on each category of charitable activity, is disclosed in note 7. The trustees operate a scheme of delegation for the majority of the charitable funds, under which fund advisors manage the day to day disbursements on their projects in accordance with the directions set out by the trustees in charity standing orders and financial instructions. Funds managed under the scheme of delegation represent ongoing activities and it is not possible to segment these activities into discrete individual grant awards. The trustees do make individual grant awards based on invited applications from Cwm Taf Health Board. 44 of 72 CHARITABLE FUND TRUSTEES MEETING 6 September /09/17

45 7.1 Appendix 1 Spreadsheet of Charity Accounts CHARITABLE FUND TRUSTEES MEETING 6 September /09/17 45 of 72

46 7.1 Appendix 1 Spreadsheet of Charity Accounts Movements in funding commitments Restricted Total Total Current Non-current 31 March 31 March liabilities liabilities Opening balance at 1 April (see note 16) Movement in liabilities (24) 0 (24) 27 Closing balance at 31 March (see note 16) As described in notes 7 and 8, the charity awards a number of grants in the year. Many grants are awarded and paid out in the same financial year. However, some grants, especially those relating to research and development or for funding a specific posts are multi-year grants paid over a longer period. 10. Allocation of support costs Support and overhead costs are allocated between fundraising activities and charitable activities. Governance costs are those support costs which relate to the strategic and day to day management of a charity. Raising Charitable Total Total funds activities Basis Governance External audit Average fund Finance and administratio Other professional fees Total governance Finance and administratio Average fund Other professional fees Other costs Restricted Total Total Unrestricted Income Endowment Funds Funds funds funds funds Raising funds Charitable activities Trustees' remuneration, benefits and expenses The charity does not make any payments for remuneration nor to reimburse expenses to the charity trustees for their work undertaken as trustee. 46 of 72 CHARITABLE FUND TRUSTEES MEETING 6 September /09/17

47 7.1 Appendix 1 Spreadsheet of Charity Accounts d balance d balance CHARITABLE FUND TRUSTEES MEETING 6 September /09/17 47 of 72

48 48 of 72 CHARITABLE FUND TRUSTEES MEETING 6 September /09/ Auditors remuneration The auditors remuneration of 2K ( : 2K) related solely to the audit of the statutory annual report and accounts. 13. Fixed asset investments Movement in fixed assets investments Total Total Market value brought forward Add: additions to investments at cost Less disposals at carrying value 0 0 Add net gain / (loss) on revaluation 165 (41) Market value as at 31st March , All investments are carried at their fair value. The trustees agreed to investing another 640k during the year in the Charities Ethical Investment Fund managed by CCLA Fund Managers Ltd, bringing the total amount invested in this fund to 1,500k. The Market Value of the fund at 31 st March 2017 was 1,687k. No other investments were held. The main investment risk lies in the volatility of the investment markets which affects both the value of those investments and dividend yields. The Charity attempts to manage this risk by: Investing long-term, and only investing cash not required for operational purposes in the foreseeable future Appointing CCLA to provide advice on investments and market situations Investing in a highly diversified fund thus spreading risk over asset classes and geographical areas 7.1 Appendix 1 Spreadsheet of Charity Accounts As at 31 st March 2017, the UK economic growth remained comfortably positive with few signs of the slow down that was feared following the European Union Membership referendum result.

49 CHARITABLE FUND TRUSTEES MEETING 6 September /09/17 Global growth rates are expected to improve during the rest of the year. As such positive returns on investment are forecasted for the year. Liquidity risk is anticipated to be low as all assets are traded and the commitment to intervention by central banks and market regulators has continued to provide for orderly trading in the markets, so the ability to buy and sell quoted equities and stock is anticipated to continue. Cwm Taf NHS General Charitable Fund investments are mainly traded in markets with good liquidity and high trading volumes. There are no material investment holdings in markets subject to exchange controls or trading restrictions. Liquidity risk is also managed through having sufficient funds held in cash deposits to meet all known commitments without having to realise any investments that are subject to market fluctuations. 7.1 Appendix 1 Spreadsheet of Charity Accounts of 72

50 7.1 Appendix 1 Spreadsheet of Charity Accounts Analysis of current debtors Debtors under 1 year Total Total 31 March 31 March Accrued income Other debtors Analysis of cash and cash equivalents Total Total 31 March 31 March Cash in hand Notice deposits (less than 3 months) No cash or cash equivalents or current asset investments were held in non-cash investments or outside of the UK. 16. Analysis of liabilities Total Total 31 March 31 March Creditors under 1 year Trade creditors 14 8 Other creditors 2 1 Accruals Creditors over 1 year Trade creditors 0 0 Other creditors 0 0 Accruals Total creditors of 72 CHARITABLE FUND TRUSTEES MEETING 6 September /09/17

51 7.1 Appendix 1 Spreadsheet of Charity Accounts Reconciliation of net income / expenditure to net cash flow from operating activities Total Total Net income / (expenditure) (per Statement of Financial Activities) Adjustment for: Depreciation charges 0 0 (Gains) / losses on investments (165) 41 Dividends, interest and rents from investments (47) (35) Loss / (profit) on the sale of fixed assets 0 0 (Increase) / decrease in stocks 0 0 (Increase) / decrease in debtors 21 (40) Increase / (decrease) in creditors (24) 27 Net cash provided by (used in) operating activities Transfer between funds There has been no transfer between funds during the financial year. 19. Analysis of funds a. Analysis of endowment fund movements The charity does not hold any endowment funds. CHARITABLE FUND TRUSTEES MEETING 6 September /09/17 51 of 72

52 7.1 Appendix 1 Spreadsheet of Charity Accounts b. Analysis of restricted fund movements Balance 1 April Income E A CAMHS 13 1 B Medical Unit ward funds - RGH 17 1 C Maxillo Facial Unit 24 3 D Ward D E GP VTS F X-Ray 16 1 G Restricted Colorectal Research Fund H Rheumatology Research 28 1 I Postgraduate Medical Education 45 2 J Giving to Pink K Psychiatric Wards 16 2 L Urology Research 12 0 M Rosslyn Chidgey Fund 87 3 N Mr Edward Rees Davies Other restriced funds (40) The objects of the material restricted funds are as follows: The Rosslyn Chidgey Fund is a legacy left to Prince Charles Hospital, Merthyr Tydfil such sums are to at the said hospital. Giving to Pink is a charity group that make donations for a specialist breast care unit within Cwm Taf U Colorectal Research Fund is a research fund associated with funding courses and expenses related t The Edward Rees Davies fund is a legacy left for the care and treatment of the stroke patients across c. Analysis of unrestricted and material designated fund movements Balance 1 April Income E A Medical Unit 19 6 B Cardiology Research 13 2 C Dental Post Graduate Fund 13 3 D Intensive Care Unit Fund 27 4 E RGH General Purposes 42 1 F YCR General Purposes 27 3 G Haematology 29 3 H Colorectal Equipment 36 1 I Diabetes Research & Education 43 3 J Colorectal Research & Education 66 2 K Y Bwthyn 64 4 L Cardiac/Coronary Care 71 4 M YCC & MHP Wards/Departments N Palliative Hospital Fund 19 9 O PCH General Purposes 24 5 Other unrestriced funds (24) of 72 CHARITABLE FUND TRUSTEES MEETING 6 September /09/17

53 7.1 Appendix 1 Spreadsheet of Charity Accounts The fund balance for YCC & MHP Wards/Departments includes 250k of the legacy left by Mr Edwa cared for at Ysbyty Cwm Cynon. A cumulative balance of 187k relating to unrealised gains on investments (as detailed in note 13) is above. CHARITABLE FUND TRUSTEES MEETING 6 September /09/17 53 of 72

54 7.1 Appendix 1 Spreadsheet of Charity Accounts Gains Balance Expenditure Transfers and 31 March losses (2) (1) (6) (6) (5) (1) (24) (2) (17) (24) (4) (2) (3) (30) (127) o be utilised for scienc e and technology equipment University Health Bo ard. to colorectal research and education. Cwm Taf University Heal th Board. Gains Balance Expenditure Transfers and 31 March losses (5) (1) (1) (1) (13) (2) (1) (6) (2) (3) (3) (33) (1) (1) (21) of 72 CHARITABLE FUND TRUSTEES MEETING 6 September /09/17

55 7.1 Appendix 1 Spreadsheet of Charity Accounts (94) ,110 rd Rees Davies for the benefit o f patients being s included within the oth er unrestriced funds' balances CHARITABLE FUND TRUSTEES MEETING 6 September /09/17 55 of 72

56 7.1 Appendix 1 Spreadsheet of Charity Accounts STATEMENT OF FINANCIAL TRUSTEE'S RESPONSIBILITIES As Financial Trustee of the funds held on trust I am responsible for: - the maintenance of financial records appropriate to the activities of the fund(s). - the establishment and monitoring of a system of internal control. - the establishment of arrangements for the prevention of fraud and corruption. - the preparation of annual financial statements which give a true and fair view of the funds held on trust and the results of their operations. In fulfilment of these responsibilities I confirm that the financial statements set out on pages 1 to 12 attached, have been compiled from and are in accordance with the financial records maintained by the trustees and with accounting standards and policies for the NHS approved by the Assembly Financial Trustee 56 of 72 CHARITABLE FUND TRUSTEES MEETING 6 September /09/17

57 7.2 Appendix 2 Trustees Annual Report Appendix 2 Cwm Taf NHS General Charitable Fund TRUSTEES ANNUAL REPORT For the Charitable Funds managed by Cwm Taf University Health Board CHARITABLE FUND TRUSTEES MEETING 6 September /09/17 57 of 72