Manchester Children s Hospitals Charity

Transcription

1 Manchester Children s Hospitals Charity Charity Commission Registered No Charitable Funds Annual Report & Accounts 1 st April 2005 to 30 th September 2005 Principal Address Cobbett House Manchester Royal Infirmary Oxford Road Manchester M13 9WL

2 CONTENTS Chairman s Introduction... 1 Structure, Governance and Management... 2 Governing Document... 2 Appointments to Corporate Trustee, Induction and Training... 2 Induction Policy... 2 Trustee Remuneration... 2 Organisation Structure... 3 Investments... 4 Employees... 4 Risks and Internal Control... 4 Indemnity Insurance... 5 Objectives and Activities... 5 Strategic Objectives... 5 Mission Statement Charity s Aims... 5 Grant Making Policy... 6 Objectives for the Year... 6 Activities... 6 Achievements and Performance... 6 Introducing the New Children s Hospital... 6 How to make a donation... 7 Charity Partners... 7 Gifts in Memory... 8 Gift Aid... 8 Legacy Support... 8 Financial Review... 9 Source of Income... 9 Financial Highlights... 9 Resources Expended... 9 Net Income Before Transfers & Other Recognisable Gains & Losses... 9 Reserves Policy... 9 Investments Investment Powers Investment Policy Ethical Investment Policy Investments Plans for Future Periods Independent Auditor s Report to the Trustees of Central Manchester and Manchester Children's University Hospitals Charity Respective responsibilities of trustees and auditors Basis of Opinion Opinion... 13

3 Statement of Trustees Responsibilities Statement of Financial Activities Balance Sheet Notes to the Account Auditors Remunerations Investments Analysis of Charitable Funds Reference and Administrative Details of the Charity, Its Trustees and Advisers... 23

4 Chairman s Introduction The trustees of this charity after consultation with the Charity Commission agreed that it was inappropriate that the NHS Trust should have two registered charities held for the same purpose, therefore on the 30 th September 2005, this charity was merged with the Central Manchester & Manchester Children s Charity. Our New Hospitals Development due to be completed by 2009, will have transformed our central hospitals site. Alongside this development, which presents a once in a lifetime opportunity to ensure our new hospitals are amongst the best in the world, we have this year launched a major charitable appeal. By combining NHS investment and charitable support, we will enhance the healing environment for all our patients. Charitable support is invaluable to our existing hospitals and we want to ensure that those extra benefits are afforded to the new development. Our appeals, focusing primarily on support for our younger patients and families, will ensure that the new stateof-the-art buildings have the best equipment available for diagnosis and treatment and provide accommodation so that families can stay close to their children during treatment. The New Children s Hospital Appeal is chaired by Mr. Maurice Watkins, Senior Partner at Brabners, Chaffe Street. Mr. Watkins is also a Director of Manchester United Football Club Limited, Regional Chairman of Coutts Bank and President of the British Association for Sport and Law. Alongside the new appeals, we ensure that the hospitals currently treating patients continue to be the very best that they can be. During the period April to September 2005 the Children s Charity received charitable income of 847k. All further income received during the financial year 2005/06 will go into the merged charity, Central Manchester and Manchester Children s University Hospitals Charity registered number I would like to offer my heartfelt thanks to everyone who over the past six months who has supported our hospitals charities. Working together we will help to shape the future. Peter W Mount Chairman Page 1

5 Structure, Governance and Management Governing Document The fund was created under Trust deed executed on the 12 th August 1996 and constituted with a sole corporate trustee, the Trust Board of Central Manchester and Manchester Children s University Hospitals NHS Trust. The object of the charity is for any charitable purpose or purposes relating to the National Health Service. Appointments to Corporate Trustee, Induction and Training The Trust Board is constituted of a Chair, 6 Non-Executive Directors and 5 Executive Directors. The Chair and Non-Executive Directors are appointed by the NHS Appointments Commission, who takes on the responsibility of appointing people with the skills and attributes to act as advocates for their communities and provide leadership for the NHS. The Appointments Commission follows the guidance set by the Commission for Public Appointments, which aims to ensure that all public appointments are made on merit following the proper process. The NHS Appointments Commission has a process in place to provide ongoing support, mentoring, induction and training to Chairs and Non-Executive Directors. The Chief Executive is appointed by the Chair, Non-Executive Directors and two external assessors from within the NHS. The Executive Directors are appointed by the Chair, Chief Executive, Non-executive directors and two external assessors from within the NHS. Induction Policy The Trust has an Induction Policy for all staff, which, in summary, is delivered at three levels: Corporate, providing Trust wide information, Division/Directorate, to orientate them more broadly into the Division/Directorate and Local, providing the detail of their department and individual role. Trustee Remuneration The individuals comprising the sole corporate trustee are the Executive and Non- Executive members of the Trust Board of the Central Manchester and Manchester Children s University Hospitals NHS Trust. The individuals do not receive any remuneration from the Charity in their capacity as Trustee; they are however remunerated by the NHS Trust in their capacity as a Trust Board member. The management costs include a small recharge from the NHS Trust in relation to their direct work for the Charity. Page 2

6 Organisation Structure The NHS Trust Board was appointed as corporate trustee of the charity by virtue of Statutory Instrument SI 2002 (2271). It is this body which approves a number of documents for the regulation and proceeding of business. These include: Standing Orders Scheme of Decisions and Scheme of Delegation Standing Financial Instructions. These documents set the framework within which all Directors and employees of the Trust must operate. These documents apply equally to the Trust s charitable funds as to exchequer. The Trust Board considers that these arrangements ensure that the activities of the Charity are considered and applied in harmony with the strategic and operational objectives of the NHS Trustee, thus ensuring that the same consistency and openness is applied to all the Trusts funds whether exchequer or charitable. The Trust Board has appointed a Charitable Fund Committee for the overall management of the charitable fund. This Committee has specific terms of reference approved by the Trust Board. The Committee has a membership comprising the Chair and nominated executive and non-executive directors of the Trust. This Committee meets at least 3 times per year, usually July, November and March, the minutes from which are presented to a full Trust Board meeting for approval. The Executive Director of Capital, Finance, Information & Planning is the Executive Director nominated by the Board to have prime responsibility for the administration of the Trust s charitable fund activities, including the preparation and presentation of appropriate reports to the Charitable Fund Committee. The Charity is registered with one unrestricted fund; this means that that there are no restrictions on how the money is spent, other than the governing document. However, to ensure that the funds are applied in accordance with donor wishes, but without creating any restrictions, the Trustee has created over 50 individual designations. This enables the designations to be managed by fund advisers at an appropriate level within the organisation, ranging from nurses and clinicians to managers and support staff. The designated fund advisers are appointed by the NHS Trust s management team in accordance with the scheme of delegation approved by the Board. Page 3

7 Within the Scheme of Delegation, the Trustee sets the overall budgets with the day to day spending being made through a scheme of delegation as follows: Spend up to 1,000 Local Fund Advisor Spend from 1,000 to 5,000 Local Fund Advisor and Directorate Management Spend from 5,000 to 25,000 Local Fund Advisor, Directorate Management and Divisional Manager Expenditure over 25,000 Local Fund Advisor, Directorate Management and Divisional Manager. This expenditure requires the specific approval of the Charitable Fund Committee. The accounting records and day to day administration of the funds are dealt with by the finance department located at Wilmslow Park, K Block, 211 Hathersage Road, Manchester, M13 0JR. Investments The Charitable Fund Committee is delegated with the responsibility for the management and monitoring of the investments of the charitable funds in accordance with the Policy agreed by the Board. The Charity conforms to the investment powers given within the Charity Commission Order for a NHS umbrella charity and the Trustee Act The day to day administration of the investments is delegated to an investment management company, which operates within these powers and presents regular monitoring reports to the committee. The corporate trustee imposes additional requirements with regard to risk, income requirements and ethical investment policies. Employees The Charity does not directly employ any members of staff. The Charity does incur staffing costs; including clinical and support staff, who undertake research and other charitable activities, as well as fundraising and administrative staff, who run and support the Charity. These staffing contracts are held by the NHS Trust, with a recharge made to the Charity for the costs incurred relating solely to the charitable fund activities. Risks and Internal Control The Charitable Fund Committee has undertaken a full review of the major risks to which the Charity may be exposed, based upon the guidance issued by the Charity Commission Charities and Risk Management. The review covers the risks associated with: Governance and Management Operational Risk Financial Risks Environmental/ External Factors Page 4

8 Compliance risk (law and regulation) The New Hospital Development The full register identifies; the individual risk and impact assessment, a score, mitigating procedure, a point for responsibility, monitoring process and retained risk. In the main it is clear that the Trust has appropriate policies and procedures in place, together with a process monitoring and review. There was also a robust process to ensure that the risk register, policies and procedures are subject to ongoing reviews, which are undertaken by managers and officers of the Trust. The Charity also benefits from the independent reviews undertaken by both internal and external audit, reports from which are presented to the Trustee. The action points from such reports are applied and monitored on behalf of the charity by the charitable funds team within the finance department. Indemnity Insurance The individuals of the sole corporate trustee are the Executive and Non Executive members of the Trust Board of the Central Manchester and Manchester Children s University Hospitals NHS Trust. The Charity does not directly hold any indemnity insurance, however the NHS Trust does have Directors indemnity insurance, which also covers their responsibilities as trustees of the charitable fund, for which a small recharge is made to the Charity. Objectives and Activities Strategic Objectives The objects of the charity as set out in the governing document are for any charitable purpose or purposes relating to National Health Service. The Charity is mainly a grant making charity whose main recipients are the hospitals, services, patients, visitors and staff of the Central Manchester and Manchester Children s University Hospitals NHS Trust. The hospitals are; the Booth Hall Children s Hospital and Royal Manchester Children s Hospital. Mission Statement Charity s Aims The Trust s aim is to provide all users and staff a quality service that strives to meet the best standards of professional care, is sensitive and responsive to their individual needs. We want to be innovative in the treatment we provide and the environment we create. The main aims of the Charity are to support the aims of the NHS Trust, whilst ensuring that the donor s wishes and charity law are complied with. The Charity strives to achieve this in a number of ways, either directly, through patient focused expenditure e.g. Page 5

9 improving a patient waiting area or purchase of equipment, or indirectly by improving the education and training of staff and funding research. Grant Making Policy The Trust Board approves the scheme of delegation against which the managers and officers of the NHS Trust may approve grants. All grants in excess of 25,000 are approved directly by the Charitable Fund Committee. Objectives for the Year The main objectives for the year include: Improvements to the patient environment Improvements in the delivery of healthcare Commitment to research, training and education The Charity s strategy for achieving this is in partnership with the NHS, to ensure that the expenditure is made in harmony with the overall strategies of the NHS Trust. Activities The main activities of the Charity are: Research, with a significant proportion, 28% being contributed towards research salary costs Patient related expenditure, 19% through improvements to the patient experience Staff related expenditure 9% with a significant proportion towards training and education Contributions to hospital capital expenditure 44% to improve equipment and the patient environment Achievements and Performance Introducing the New Children s Hospital Royal Manchester (Pendlebury) and Booth Hall Children s Hospitals will be relocated in 2009 to a brand new state-of-the-art children s hospital in central Manchester. The New Children s Hospital Appeal will help ensure the new hospital, which will be the biggest children s hospital in the country providing specialist services to the region s children, has equipment and facilities that are second to none. The appeal will focus on two main areas: Ensuring that the new state-of-the-art buildings have the best equipment available for diagnosis and treatment. Page 6

10 Providing accommodation so that parents can stay close to their child during treatment. Over 750k was received in the period April to September 2005 from fundraising and donations across the two hospitals supported by the charity. This income supports the purchase of specialised and additional equipment, funds research and is used to improve our hospitals facilities and environment. Jessica Stafford ran the 2005 Great Manchester Run, just twelve months after her kidney and pancreas transplant at Royal Manchester Children s Hospital. The money she raised was put towards a new plasma screen TV for the hospital s haemodialysis unit. Gregg s Cancer Run for Children raised over 23,000 for the Oncology Department at Royal Manchester Children s Hospital. A donation of 4,000 from the HealthSure Foundation supported the purchase of new ventilators for the Intensive Care Unit at Royal Manchester Children s Hospital. Sian Judge braved the heights of Kilimanjaro raised over 800 for Booth Hall Children s Hospital. Some regular supporters contribute year on year to their chosen hospital, ward or department. This year we d like to send a special thank you to - The Greyhound Pub in Leigh for their support through pub quizzes; Barbara Kelly and her colleagues who regularly contribute TVs purchased from monies they have raised; Mary Clough and her family and friends who have donated over 10,000 since 2001 and Mark Crump and the Royal Air Force for their support at Christmas time with a helicopter visit bringing Father Christmas and his helpers with gifts for the children. How to make a donation It is possible through The Central Manchester and Manchester Children s University Hospitals Charity to support Royal Manchester Children s Hospital, Booth Hall Children s Hospital, Many of the wards and departments within the hospitals have their own charitable funds, so it is possible to direct your donation to the specific area you wish to support. The charity receives support through legacies, donations and fundraising events organised by supporters. For more information, contact the Appeals Office on Charity Partners The voluntary groups and charities working to support our hospitals make a valued contribution to the facilities available and the atmosphere enjoyed by patients, visitors and staff. Thank you to all our charity partners, especially those supporting the children s hospitals, including the Gem Appeal for research into genetic disorders; the Bone Page 7

11 Marrow and Stem Cell Trust for support to the Stem Cell Unit and laboratory, the Bone Marrow Transplant Unit and Borchardt Ward and The Joe Jaffe Charity which supports renal services. Thanks also to the Wallace and Gromit Children s Foundation for their continued support; the Theodora Clown Doctors for the fun they bring to children on the wards and to Kath Smith and her team of volunteers at the Research Equipment Fund who have donated over 80,000 to the Royal Manchester Children s Hospital in the last year. All funds raised by the Research Equipment Fund are used to buy new equipment, including the recent purchase of a special bed to be used during spinal surgery. Volunteers play an invaluable part in the hospitals giving countless hours of support in our shops. As well as providing a great service for patients and visitors, proceeds raised from the Pendlebury shop have contributed to the hospital s charity fund, whilst the Bobby Bear Shop at Booth Hall Children s Hospital has this year contributed 10,000 to buy theatre equipment. The Fylde Fundraising Group raised 8,000 for Royal Manchester Children s Hospital through their annual luncheon, golf day and gala ball. Gifts in Memory The Vanessa Fund, set up in memory of Vanessa Maddock from Norden, Rochdale has raised over 28,000 for sensory equipment for the Bone Marrow Unit at Royal Manchester Children s Hospital. Vanessa who sadly died in July 2001 from Leukaemia, aged six, was a patient at Pendlebury. The Vanessa Fund committee has organised events including fashion shows and a Butterfly Ball and formed a fundraising partnership with Lancashire Health and Racquet Club where money has kindly been donated from events such as Fun Days, face painting and gala dinners. Many thousands of pounds are donated each year to our hospitals in memory of patients who have died. The funds are used to improve facilities or buy equipment that will benefit our patients, so creating something very positive out of a sad personal loss. Gift Aid Last year we claimed thousands of pounds in gift aid. If you are a UK tax payer you can increase your donation by 28% with gift aid by making a simple declaration. For information about gift aid, legacy donations and the many other ways you could support the hospitals now and in the future, please call the appeal office in Legacy Support Many people update their will when they move house, get married or have children and this can be a great time to consider leaving a bequest to charity. Over 316,000 was received in period to 30 th September 2005 from legacies. This money represents a very substantial contribution to the charity income and enables additional research, the purchase of equipment and improvements to the hospitals environment. A legacy may be left to a specific hospital or to a specialist area of work in accordance with the donor s Page 8

12 wishes and is an invaluable way of securing the benefits of charitable support long into the future for our hospitals. Financial Review Source of Income The income streams of the Charity are: Donations 54% Legacies 37% Investments 7% Charitable activities 2% Financial Highlights Incoming resources for the period to 30 th September totalled 847k; There are no comparisons for the similar period last year as the funds were merged in September However if a pro-rata figure was applied to the previous year, there would be a comparison of 682k last year to 847k this year to September. This would give an increase over last year of 24.9%. This increase is mainly attributable to: Legacies Investment Income Income Resources from Charitable Activities Resources Expended The resources expended on the charitable activities during the year (excluding cost of generating funds and governance cost) would have fallen by 15.8% over the previous year s activities, cost of generating funds was also reduced by 16.2% and governance cost also rose by 40% over the previous year s activities. These percentages have been calculated on a pro-rata basis for the previous year Net Income Before Transfers & Other Recognisable Gains & Losses The net income from all activities before transfers, and recognisable gains or losses, is 168k. The two charities merged on 30 th September, the value of the transfer of funds was 2,617k. Reserves Policy The Trustee s policy on reserves is detailed as follows: Page 9

13 The Manchester Children s Charity is able to hold and administer funds for any purpose or purposes relating to the National Health Service. The hospitals that the charity serves are part of the larger NHS Trust comprising 6 teaching hospitals. The two children s hospitals are: Booth Hall Children s Hospital Royal Manchester Children s Hospital In order to ensure that donations are utilised in accordance with the donor's wishes, but without creating a separate trust, the Trustees operates a number of designated funds. These designations allow the Trustees to ensure that the funds are applied in harmony with donor wishes and are administered by operational managers through the policies and procedures set by the Trustee. The incoming resources of the Charity are applied as income and designated; these designations do not require a reserves policy. The Trustee has a requirement for freely available funds in order to fund the following: To maintain the continued furtherance of the objects of the Charity To cover management, administration, fundraising and other support costs The Trustee believes the level of reserves should be sufficient to cover Two years operational support costs To provide a resource of 6 months charitable fund expenditure. The level of reserves will be continually monitored by the Trustee and the policy will be reviewed every three years. This policy requires the Charity to maintain a reserve of circa 717k. The level of reserves held against this policy at the 30th September 2005 was 412k. Investments Investment Powers The Charity conforms to the investment powers given by the Charity Commission Order for a NHS umbrella charity and the Trustee Act The day to day administration of the investments is delegated to an investment management company, which operates within these powers, together with the additional requirements of the corporate trustee with regard to risk, income requirements and ethical investment policies Investment Policy The Charity s investment policy is based upon the powers within the Trust deed, which forms the basis of a formal investment management agreement with the investment managers. The main aims of the policy are as follows: There should be a balanced portfolio. Page 10

14 The investment style is conservative. The Trustee monitors performance against the WM2000 weighted average. Refrain from the direct investment in companies which had substantial activities in tobacco manufacture. No direct investment exposure through overseas shares. Overseas equity exposure should be taken through UK quoted trusts. Overseas exposure should not exceed 20% of the total fund. Ethical Investment Policy The Trustee has considered and agreed a policy for ethical investments, which forms part of the Investment policy agreed with the Investment Manager. The narrative of the policy is as follows The Investment Manager should not invest directly in a company which has substantial activities in tobacco manufacture, as these conflicts directly with the aims of a healthcare charity Investments The Charity operates a segregated portfolio, which means that the Charity s investments are held in individual stock and share as well as pooled investments, the portfolio is valued 2.1m at 30 th September 2005, and contains over 50 individual stocks and shares. As at the 30 th September the charity can disclose the following two investments which exceed 5% of the total Treasury 5.75% % 7.75% Treasury 6.25% % 5.96% Plans for Future Periods The Charity s plans for the future are to continue with its investments to meet its primary objectives of: Improvements to the patient environment Improvements in the delivery of healthcare Commitment to training and education These plans will continue to be developed and implemented through The Central Manchester and Manchester Children s Charity, which is the merger of the two charities that took place in September Page 11

15 Independent Auditor s Report to the Trustees of Central Manchester and Manchester Children's University Hospitals Charity I have audited the financial statement of the Manchester Children s Charity for the period April to September 2005 set out on pages 15 to 22. These financial statements have been prepared under the historical cost convention (as modified by the revaluation of certain fixed assets) and the accounting policies set out therein. Respective responsibilities of trustees and auditors The trustees responsibilities for preparing the Trustees Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards are set out in the Statement of Trustees' Responsibilities. I have been appointed as auditor under section 43A of the Charities Act 1993 and report in accordance with regulations made under section 44 of that Act. My responsibility is to audit the financial statements in accordance with relevant legal and regulatory requirements and United Kingdom Auditing Standards. I report to you my opinion as to whether the financial statements give a true and fair view and are properly prepared in accordance with the Charities Act I also report to you if, in my opinion, the Trustees Annual Report is not consistent with the financial statements, if the charity has not kept proper accounting records, or if I have not received all the information and explanations I require for our audit. I read other information contained in the Trustees Annual Report, and consider whether it is consistent with the audited financial statements. I consider the implications for my report if I become aware of any apparent misstatements or material inconsistencies with the financial statements. My responsibilities do not extend to any other information. This report is made solely to the trustees of Central Manchester and Manchester Children s University Hospitals Charity in accordance with section 43A of the Charities Act My audit work has been undertaken so that I might state to the trustees those matters I am required to state to them in an auditor s report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the trustees of the Central Manchester and Manchester Children s University Hospitals Charity for my audit work, for this report, or for the opinions I have formed. Page 12

16 Basis of Opinion I conducted my audit in accordance with the Charities Act 1993 and relevant auditing standards 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 judgments made by the trustees 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. I planned and performed my audit so as to obtain all the information and explanations which I considered necessary in order to provide me with sufficient evidence to give reasonable assurance as to whether the financial statements are free from material misstatement, whether caused by fraud or other irregularity or error. In forming my opinion, I also evaluated the overall adequacy of the presentation of information in the financial statements. Opinion In my opinion the financial statements give a true and fair view of the charity's state of affairs as at 30 th September 2005 and of its incoming resources and application of resources in the year then ended and have been properly prepared in accordance with the Charities Act Mick Waite District Auditor 8 th January 2007 Audit Commission 2 nd Floor, Aspinall House Aspinall Close Middlebrook Horwich Bolton, BL6 6 QQ Page 13

17 Statement of Trustees Responsibilities Under the trust deed of the charity and charity law, the trustees are required to prepare financial statements for each financial year which show a true and fair view of the state of affairs of the charity and of the excess of income over expenditure. In preparing these financial statements, the trustees are required to: Select suitable accounting policies and then apply them consistently; Make judgements and estimates that are reasonable and prudent; State whether the recommendations of the Statement of Recommended Practice ( Accounting and Reporting by Charities: Recommended Practice (March 2005) ) have been followed, subject to any material departures disclosed and explained in the financial statements; State whether the financial statements comply with the trust deed, subject to any material departures disclosed and explained in the financial statements; Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue its activities; Ensure the accounts comply with current statutory requirements, the requirements of the charity s governing document and the requirements of the charity SORP. The trustees are required to act in accordance with the trust deed of the charity, within the framework of trust law. They are responsible for keeping proper accounting records, sufficient to disclose at any time, with reasonable accuracy, the financial position of the charity at that time, and enable the trustees to ensure that any statements of accounts comply with the requirements of regulations under that provision. They have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the charity and to prevent and detect fraud and other irregularities. The Trustees confirm that they have met the responsibilities set out above and have complied with the requirements for preparing the accounts. These financial statements as set out on pages 15 to 22 were approved by the Trustees on 8 th January 2007 and were signed on its behalf by: Chairman Trustee Director of Capital, Finance, Information and Planning Page 14

18 Statement of Financial Activities Manchester Children's Hospital Charity Statement of Financial Activities1st April to 30th September th Sept 31st March Note Total Total Unrestricted Funds Funds Incoming resources Incoming resources from generated funds Voluntary Income: Donations 461 1,138 Legacies Sub total voluntary income 777 1,210 Grants 0 0 Fundraising Income 0 51 Investment Income Incoming resources from Charitable Activities 13 0 Total incoming resources ,364 Resources expended Costs of generating funds Costs of generating Funds Sub total costs of generating funds Charitable Activities Clinical care and research posts Purchase of new equipment New building & refurbishment Staff Welfare, Education & amenities Patient education, welfare & amenities Sub Total Charitable activities ,525 Governance Costs Total resources expended 679 1,609 Net incoming resources before transfers and other recognised gains/(losses) on investments 168 (245) Transfers Gross transfers between funds 0 0 Transfer of funds from Children's Charity 0 0 Net incoming resources before other recognised gains/(losses) on investments 168 (245) Other recognised gains and losses Realised and unrealised gains/(losses) on investment assets Net Movement in Funds 348 (38) Fund balances brought forward at 1st April ,269 2,307 Fund balances carried forward at 30 September ,617 2,269 The notes at pages 17 to 22 form part of this account. Page 15

19 Balance Sheet Manchester Children's Hospital Charity Balance Sheet as at 30th September 2005 Notes Total at Total at 30th Sept March Fixed Assets Investments 4 2,342 2,167 Total Fixed Assets 2,342 2,167 Current Assets Debtors Cash at bank and in hand Total Current Assets Creditors: Amounts falling due within one year 7 (113) (217) Net Current Assets/(Liabilities) Total Net Assets 2,617 2,269 Funds of the Charity Income Funds: Unrestricted 8 2,617 2,269 Total Charity Funds 2,617 2,269 The notes at pages 17 to 22 form part of this account. Signed: Trustee Trustee Date: 8th January 2007 Page 16

20 Notes to the Account 1 Accounting Policies 1.1 Basis of preparation The financial statements have been prepared under the historic cost convention, with the exception of investments which are included at market value. The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice (SORP) 2005 issued in March 2005 and applicable UK Accounting Standards and the Charities Act 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) iii) certainty when there is reasonable certainty that the incoming resource will be received; Measurement when the monetary value of the incoming resources can be measured with sufficient reliability. b) Gifts in kind The Charity had no gifts in kind to disclose c) Intangible income d) Legacies The Charity had no intangible income Legacies are accounted for as incoming resources either upon receipt or where the receipt of the legacy is virtually certain, this will be once confirmation has been received from the representatives of the estate(s) that payment of the legacy will be made or property transferred and once all the conditions attached to the legacy have been fulfilled. 1.3 Resources expended Expenditure is recognised when a liability is incurred The costs of generating funds are the costs associated with generating income for funds held on trust. This will include costs associated with fundraising events and investment management. Charitable Activities costs comprise all costs incurred in the pursuit of charitable objects of the charity. These costs comprise directs costs and an apportionment of overhead and support costs as shown in note 4 Governance costs comprise all costs incurred in the governance of the charity. These costs include costs related to statutory audit, direct costs together with an apportionment of overhead and support costs. 1.4 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. Where the capital is held to generate income for the charitable fund and cannot itself be spent are accounted for as endowment funds. Other funds are classified as unrestricted. Funds which are not legally restricted but which the Trustee has chosen to earmark for a specific purpose are designated funds. The major funds held within these categories are disclosed at note 10. The Charity does not have any restricted or endowment funds. 1.5 Fixed Assets Investments Investment stated at market value as at the balance sheet date. The statement of financial activities includes net gains and losses arising on the revaluation and disposals throughout the years. Page 17

21 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 are calculated as the difference between the sale 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 period end and opening market value (or date of purchase if later) 1.7 Change in the Basis of Accounting There has been no change in the basis of accounting during the year. 1.8 Prior Year Adjustments There has been no change to the accounts of prior years. 1.9 Pooling Scheme The Charity is not required to operate a pooling scheme Related Party Transactions During the year none of the Trustees or members of the key management staff or parties related to them has undertaken any material transactions with the Manchester Children s Hospitals Charity. Board members/trustees (and other senior staff) take decisions both on Charity and Exchequer matters but endeavour to keep the interests of each discrete and do not seek to benefit personally from such decisions. Declarations of personal interest have been made in both capacities and are available to be inspected by the public. The Charity has made revenue and capital payments to the Central Manchester and Manchester Children s University Hospitals NHS Trust where the Trustees are also members of the Trust Board which amount to 641k to September (2004/ k 12 months) The audited accounts of the Central Manchester and Manchester Children s University Hospitals NHS Trust are available from the Director of Finance on Page 18

22 2 Allocation & apportionment to Governance costs 1st April to 30th September Allocated Residual Basis Total to for of 000 Governance Apportionment Apportionment Finance & Admin support Allocated on time Fundraising Allocated on time Apportionment of Support costs across charitable activities Research Equipment New Build Staff Patient Total and and Welfare Welfare Allocated Clinical refurbishment Education & Education & Support Amenities Amenities Finance & Admin Fundraising Analysis of charitable expenditure Direct Grant Support Total Activity Funded costs Research and clinical support Equipment New build and refurbishment Staff welfare education and amenities Patient welfare education and amenities Allocation of Staff Costs The charity does not employ any staff directly, and uses the resources of the Trust, where an administration fee is paid. Auditors Remunerations The auditor s fee for the period (for both charities) amounted to 8k, ( 9k ) and is included in the accounts of the merged charity. Page 19

23 Resources Expended 3 Costs of Generating Funds Total costs Total funds Total Costs Total funds raised raised Fund raising costs ,210 Investment Management Costs ,364 Investments Note 4 Fixed Asset The value of Children's Charity investment transferred into Central Manchester and Manchester Children's at 30th September is as follows : 30th Sept Market value at 31 March ,167 1,964 Add: additions to investments at cost Less: disposals at carrying value (267) (195) Add: Net gain on revaluation Transfer to CMMCC 2,342 2, Market value at 30 September 2005 : Held 30th Sept in UK Total Total Investments listed on Stock Exchange 2,183 2,183 2,004 Cash held as part of Investment Portfolio ,342 2,342 2, Total gross income Held 30th Sept in UK Total Total Quoted Investments Interest on cash held on deposit Page 20

24 Analysis of Debtors & Creditors Note 5 Analysis of Debtors at 30th September Sept 31 March Amounts falling due within one year: Prepayments - - Accrued income - - Other debtors 9 47 Total debtors falling due within one year Analysis of cash & deposits Cash at bank locally Cash held as part of investment portfolio Analysis of Creditors Amounts falling due within one year: Other creditors Accruals Total creditors falling due within one year Page 21

25 Analysis of Charitable Funds Note 8 Material Designated Funds Balance Incoming Resources Gains and Balance 01/04/2005 Resources Expended Losses 30/09/ General Purposes (11) Heart Care Unit (11) Cancer & Leukaemia (76) Professorial Research (6) 0 98 Ashby Ward 58 2 (2) 0 58 Spina Bifida Helen Milnes (23) 0 56 Anaesthetic Education Intensive Care (7) 0 78 Burns Camp (17) 0 47 Unrealised and realised gains Other Funds (526) Total 2, (679) 180 2,617 Page 22

26 Reference and Administrative Details of the Charity, Its Trustees and Advisers As a sole corporate trustee, the names of the directors are required to be disclosed: Chairman Non-Executive Director Non-Executive Director Non-Executive Director Non-Executive Director Non-Executive Director Non-Executive Director Mr P Mount Mr A J Leon Mrs S Jones Ms C Nangle Professor W Shaw Ms J Somerset Dr B Nkwenti-Azeh Chief Executive Mr M Deegan Executive Director of Capital, Finance, Information and Planning Mr J Scampion Executive Director of Patient Service/Chief Nurse Mrs G Heaton Acting Director of Human and Director of Human and Corporate Resources (to 31/12/05) Mrs G Hemus Medical Director (from 01/04/05) Mr R Pearson Medical Director (to 31/03/05) Professor M Chiswick Executive Director of Children s Services from (06/06/05) Mr M Hodgson Executive Director of Children s Services to (02/05/05) Mr L Richards Address of Registered Charity Director of Appeals and Regeneration Charity Accountant Banker Solicitor Auditor Investment Advisors Cobbett House Manchester Royal Infirmary Oxford Road Manchester M13 9WL Tel Fax Mr D Cain Tel Fax David.Cain@cmmc.nhs.uk Mrs C Neild Tel Fax chris.neild@cmmc.nhs.uk Royal Bank of Scotland University Precinct, Oxford Road Manchester M13 9WP Hempsons Portland Tower, Portland Street, Manchester M1 3LF Audit Commission Aspinall Close, Middlebrook Horwich, Bolton, BL6 6QQ Gerrard Limited 1 St James Square, Manchester M2 6DN Registered Charity Number Page 23