PAPWORTH HOSPITAL CHARITY ANNUAL REPORT AND ACCOUNTS 2010/11

Transcription

1 PAPWORTH HOSPITAL CHARITY ANNUAL REPORT AND ACCOUNTS 2010/11 Page 1

2 Contents Page Report from the Chairman 3 Charity Organisation Information 4 Charity Aims 4 Structure, Governance and Management 5 The Corporate Trustee o Statement of the Corporate Trustee s Responsibilities 5-6 o Members of the Corporate Trustee 6 The Charitable Funds Committee Annual Review o Members of the Charitable Funds Committee 7 o Charitable Funds Committee Responsibilities 7 Purchases from Charitable Funds 10 Income and Expenditure Activities and Events Annual Accounts Auditors Report Statement of Financial Activities 17 Balance Sheet 18 Notes to the Financial Statements Page 2

3 Report from the Chairman This will be the sixth year that I have reported as Chairman of the Papworth Hospital Foundation Trust Charity Board. I am pleased to report that, despite the very difficult economic climate, donations during the financial year have increased by 5.6% from 602,000 in 2009/10 to 636,000. Unfortunately this increase was not mirrored in the legacies received which showed a significant downturn from 1,436,000 in 2009/10 to 582,000 in 2010/11. Although always notoriously difficult to predict this highlights the need for the charity to move away from an over reliance on legacy income and also to be more proactive in attracting legacies in the future. The regular organised events for the Charity continue to be one of the major areas of our fundraising and although participant numbers for our World Heart Day walk were slightly down on those taking part in 2009 nevertheless the event still raised over 21,000 for our work. The Grand Summer Draw was also well supported as was the Ely Carol Service with the new time of 2.30 p.m. on Saturday afternoon proving to be very popular with those attending. Last year I reported that the Board had approved a new Fundraising Strategy to enable us to grow the charity to meet the demands of forthcoming years. The first steps for this; the appointment of three new members of staff took place at the beginning of the financial year and plans are now well advanced for a host of new activities being planned for the next eighteen months. I will report in more detail on these events and activities in future Annual Reports. We have also continued to make progress on other fundraising programmes. Our partnership with Clothes Aid raised 25,000 during the year. Our merchandise items, including the ever popular Christmas cards and diaries, provided an additional 6,700 and the Papworth Lottery now has over 500 members producing an income of 356 for the Charity every week. We could not do any of this, of course, without the unstinting assistance of our donors and we remain eternally grateful to them for their generosity no matter how large or small a sum; every donation helps a patient in one way or another. With difficult times still ahead of us I am confident that we will be able to continue to count on their support during the years to come. ROBERT BURGIN Chairman Date: 26 th January 2012 Page 3

4 Charity Organisation Information The Corporate Trustee presents the annual report for the Papworth Hospital Charitable Fund, together with the audited financial statements for the year ended 31 March The Annual Report and Accounts have been prepared in accordance with the Charities Act 1993 and the Statement of Recommended Practice Accounting and Reporting by Charities. The Charity is registered with the Charity Commission (under Registered Charity number ) in accordance with the Charities Act The Charity is governed by a Declaration of Trust dated 10 July 1995 (amended by a supplemental deed 14 May 2008). The Charity objectives set out in the governing document are for any purpose or purposes relating to the National Health Service. Registered Office: Office Papworth Hospital NHS Foundation Trust Papworth Everard Cambridge CB23 3RE Principal Professional Advisors Bankers Barclays Corporate Banking Centre P O Box 855 Mortlock House Histon Cambridgeshire CB24 9DE Auditors PricewaterhouseCoopers LLP The Atrium St Georges Street Norwich NR3 1AG Solicitors Mills and Reeve Francis House 112 Hills Road Cambridge CB2 1PH Investment Fund Managers Smith & Williamson Investment Managers 25 Moorgate London EC2R 6AY Charity Aims The Papworth Hospital NHS Foundation Trust Charity aims to raise significant funding from a variety of sources in order to sustain Papworth Hospital as the UK's leading centre of excellence for the treatment and diagnosis of cardiothoracic diseases. The charity's fundraising activities also support Papworth Hospital's pioneering research activity and vision for the future. Page 4

5 The Corporate Trustee of has complied with the duty in section 4 of the Charities Act 2006 and has paid due regard to Charity Commission guidance on public benefit in deciding what activities the charity should undertake. During the year it has met its aims by providing additional equipment to ensure that Papworth Hospital remains a leader in the field of the diagnosis and treatment of heart and lung disease, supported our patients and their families through the provision of additional amenities, provided additional training and educational resources for our medical staff and supported research into finding new ways of treating heart and lung disease for future generations. Structure, Governance and Management The charity comprises of 62 individual funds as at the 31 March Charitable funds received by the Charity are accepted, held and administered as funds held on trust for purposes relating to the health service in accordance with the National Health Service Act The charitable funds are held on trust by the corporate body. The Corporate Trustee The Papworth Hospital NHS Foundation Trust is the Corporate Trustee of the Papworth Hospital Charitable Fund governed by the law applicable to trusts, principally the Trustee Act 2000 and the Charities Act Members of the Board of Trustees and the Charitable Funds Committee are not individual trustees under charity law, but act as agents on behalf of the Corporate Trustee. Recruitment, Induction and Training for the Corporate Trustee As a foundation trust, Non-executive Directors appointments are the responsibility of the Board of Governors, which is in turn elected by foundation trust members. Executive members of the board are subject to recruitment by the Board of Directors. As part of their induction new Executive and Non-executive Directors of the Papworth Hospital NHS Foundation Trust are made aware of their responsibilities as Corporate Trustee of the Papworth Hospital NHS Foundation Trust Charity. The induction includes an introduction to the objectives, scope and policies of the Board of Trustees and Charitable Funds Committee, Charity Commission information on trustee responsibilities, copies of the previous years Trustee s Annual Report and Accounts and a copy of the governing documents for the charity. Statement of the Corporate Trustee s Responsibilities The Corporate Trustee fulfils its legal duty by ensuring that funds are spent in accordance with the objects of the Charity. The majority of the funds are unrestricted and can therefore be spent at the discretion of the Corporate Trustee in furtherance of the charity s objects. Within the unrestricted fund there are 4 unrestricted and 29 designated funds relating to individual departments and specialties. By the use of designated funds the trustee respects the wishes of donors to benefit patient care, research and developments in particular areas of the hospital s activities. Page 5

6 The Trustee is responsible for preparing the Trustee s Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). The law applicable to charities in England and Wales requires the Trustee to prepare financial statements for each financial year which give a true and fair view of the charity s financial activities during the year and of its financial position at the end of the year. In preparing financial statements giving a true and fair view, the Trustee should follow best practice and: Select suitable accounting policies and then apply them consistently; Observe the methods and principles in the Charities Statement of Recommended Practice (SORP); Make judgements and estimates that are reasonable and prudent; State whether applicable accounting standards and statements of recommended practice have been followed, subject to any departures disclosed and explained in the financial statements; and Prepare the financial statements on the going concern basis unless it is inappropriate to presume the charity will continue in operation. The Trustee is also responsible for keeping accounting records which disclose with reasonable accuracy the financial position of the charity and which enable it to ensure that the financial statements comply with the Charities Act 1993, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. The Trustee is responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The Trustee confirms that it has met the responsibilities set out above and complied with the requirements for preparing the accounts on a going concern basis. The financial statements set out in pages 14 to 25 have been compiled from and are in accordance with the financial records maintained by the Trustee. Members of the Corporate Trustee 2010/11 Designation Chairman Non-executive Director Non-executive Director Chief Executive Director of Human Resources Director of Nursing Non-executive Director Non-executive Director Director of Finance Non-executive Director Non-executive Director Medical Director Director of Operations Name Mr Robert Burgin Mrs Anne Bailey Professor Andrew Bradley Mr Stephen Bridge Miss Elizabeth Horne Mrs Ann-Marie Ingle Mr John Lodge Miss Nicky Mullany Ms Jane Payling Mr Howard Rolfe Prof Michael Simmonds Dr Susan Stewart Mrs Claire Tripp Page 6

7 Related Parties During the financial year 2010/11, the Papworth Hospital NHS Foundation Trust was the main beneficiary of the Charity and is a related party by virtue of being Corporate Trustee of the Charity. The Charitable Funds Committee The Trustee has devolved responsibility for the on-going management of the investment funds to the Charitable Funds Committee. The Charitable Funds Committee also makes recommendations to the Board of Trustees on other matters. Members of the Charitable Funds Committee 2010/11 Designation Name Chair (Non-executive Director) Mrs Anne Bailey Elected Public Governor Mr Eric Flack Director of Development Ms Mary Liley Non-executive Director Mr John Lodge Trust Secretary Mrs Mary MacDonald Director of Finance Ms Jane Payling Elected Public Governor Mrs Audrey Stenner Director of Operations Mrs Claire Tripp Charitable Funds Committee Responsibilities The Charitable Funds Committee terms of reference state that it undertakes the following duties on behalf of the Corporate Trustee: - Receive information on charitable funds income and expenditure. Monitor the performance of the Charity Office against the Annual Plan. Authorise expenditure of charitable funds over 10,000 and up to a delegated limited of 50,000 for each item of expenditure. Receive the Trust s Charitable Funds Annual Report and Accounts. Establish and review the Trust s Charitable Funds Reserve Policy. Establish and review the policy for the use of funds and to monitor the implementation. Approve and review the appointment of investment managers to advise, invest, administer and realise the Trust s funds in accordance with the policy. Ensure that the investment of funds by the investment managers is in accordance with the policy and in accordance with any policy on ethical investments that the Trust may establish. Receive assurance that the receipt, management and use of the Trust s funds are in accordance with the Trust s Standing Financial Instructions. Ensure through documented policies and procedures and delegated authority that funds are used for any reasonable purpose connected with patients or staff of Papworth Hospital NHS Foundation Trust, consistent with the overall policies and objectives of the Trust, including clinical research and in accordance with the wishes of the donor. Ensure all policies within the purview of the Committee are reviewed in line with the timescales defined in the Trust s Document Control Policy, and ensure new policies are approved and distributed to relevant staff. Page 7

8 The accounting records and the day to day administration of the funds are dealt with by the Finance department located at Papworth Hall, Papworth Hospital NHS Foundation Trust, Papworth Everard, Cambridge CB23 3RE. Risk Management The risks to which the Charity is exposed have been identified and considered. They have been reviewed and actions taken to mitigate these risks. The most significant risk identified was future levels of income. This has been carefully considered and procedures are in place to review income trends and implement changes in fundraising activity. Investment Policy The investment policy of the fund is to maximise long-term investment gains whilst allowing sufficient flexibility for funds that may need to be accessed in the short term. Management of Funds Funds, which may need to be accessed quickly, are retained in short-term bank deposit accounts. In order to maximise the benefit of charitable donations, funds are invested until they are required for particular projects or specific equipment. In respect of other funds, since a portion of these may be retained for quite long periods, the Charitable Funds Committee, with advice from its investment advisors, invests the balance in line with its investment policy. The Trustee has decided not to invest in tobacco securities because of the link between smoking and poor health, which would make such investments contrary to the Charity s objects. With the change of Investment Managers in 2007, it was decided that investments would be made on a more segregated basis. The investments now consist of a blended exposure to equities, bonds, alternative investments and cash. More specifically the UK element of the portfolio would be predominantly invested in direct equities, but collective investment schemes would be used to gain exposure to overseas markets. Monitoring of Investments Investment performance is monitored by the Charitable Funds Committee, which receives reports from the investment advisors. The Charitable Funds Committee reviews the investment policy on an annual basis. The Committee will also undertake periodic reviews of investment advice arrangements to ensure that good value for money is being achieved. During the year the realised return on the funds invested (dividends and interest) was 117,000 The value of fixed asset investments increased by 468,000 during the financial year. Page 8

9 Reserves Policy To the extent that the Charity retains funds, which technically could be spent, it effectively holds a reserve to meet current revenue commitments and future expenditure. The financial support given to Papworth Hospital NHS Foundation Trust by the Charity, by its very nature, fluctuates from year to year. This is particularly true of research activity, for which significant sums are donated, but where requirements very much depend on the range of research projects planned. It is also true of other areas including replacement of minor equipment, where expenditure can vary over time. In many cases the use of funds is restricted, for example the transplant fund or various research funds, and this too can limit the flexibility and the speed with which such funds can be used. Equally, the level of fund income can also fluctuate dramatically and it is necessary to maintain some reserves to safeguard against a sudden fall in receipts. More importantly, the hospital uses charitable funds to assist in the on-going replacement and development of buildings and major items of equipment. These projects can be very large in financial terms and so the Charity accrues funds over a period of time in order to facilitate such investments. As a result of the financial pressures within the NHS, delays in the hospital s proposed redevelopment and also the dilapidated state of many of its buildings, it is likely that the hospital will rely upon donations from charitable funds over the next few years. Current fund balances are felt to be reasonable in view of these likely future requirements. When the major estates projects are completed the necessary level of reserves may be reduced but to a level that will still enable the Charity to make donations towards the on-going equipment replacement programme at the hospital. Fundraising activities will be kept constantly under review in order to maintain an appropriate level of funds to meet the ongoing needs of the Trust. The Charitable Funds Committee of the Board of Trustees reviews this policy annually. Page 9

10 Annual Review Purchases from Charitable Funds 2010/11 Charitable funds are used in a variety of ways to benefit the hospital, including investment in capital projects, the purchase of state of the art medical equipment, providing amenities for our patients and their families, the provision of funds for additional training for our staff and for research providing tomorrow s cures today. A small selection of funds expended is detailed below: Item Department Cost Installation of Air Conditioning RSSC Unit 11,874 Sonosite Colour Power Doppler Machine an imaging General Hospital Use 14,641 machine capable of producing colour images IE33 TOE Probe to produce 3D images of the heart in Cardiac Directorate 127,612 motion Broadband for the Doctors Accommodation benefiting Whole Hospital 2,047 doctors and medical students alike Digital TV upgrade for the benefit of patients Whole Hospital 4,513 Improvements to the Lecture Theatre stage to benefit medical training Whole hospital 20,558 Income and Expenditure 2010/11 Income Papworth Hospital NHS Foundation Trust Charity is fortunate to enjoy the unstinting support of many members of the public including, patients, ex-patients and relatives across the UK. Total income from these sources for the year amounted to 1,218,000, including 636,000 from donations and 582,000 from legacies - figures for 2009/10 were 602,000 and 1,436,000 respectively. Expenditure Funds used in the year to further the Charity s objectives amounted to 1,520,000 (2009/10 1,163,000) and comprised: 2010/ /10 Research 468, ,000 Patients Welfare and amenities 747, ,000 Staff Welfare and amenities 212, ,000 Management, Admin and other expenses incl. Fundraising 93,000 68,000 Total 1,520,000 1,163,000 Fund Balance and Reclassification of Funds Page 10

11 Total funds balances increased during 2010/11 by 201,000 (2009/10 1,769,000). During the year a review was carried out by the Charity on some of its restricted funds and it was deemed that these should actually be classed in the accounts as unrestricted funds. Due to the significant size of the balance identified it was necessary to account for this recategorisation of funds retrospectively and therefore restate the unrestricted and restricted funds balances for 2009/10 in the current year accounts rather than showing them as an in year transfer, with the effect being to show the funds as if they had always been unrestricted. This resulted in a net movement in funds from restricted to unrestricted of 516,000 in comparison to the 2009/10 published accounts. Activities and Events 2010/11 Legacy Fundraising The work of Papworth Hospital is clearly remembered for many years by our patients and their loved ones, as so many people decide to leave legacies to the Trust. We are extremely grateful that 582,000 was received in 2010/11 from legacies, providing a substantial source of income for the hospital. This is a decrease in legacy income of 854,000 from the previous year - this fluctuation proving that is very difficult to plan income from this source. Nevertheless plans are now being put in place to refresh our legacy programme with a view to attracting more legacies in future to even out these highs and lows. Donations Our supporters have once again helped the Charity in a variety of ways, by responding to our newsletters, attending events and taking part in our fundraising initiatives. We were delighted that income from donations amounted to 636,000 represented by individual giving, charity fundraising days, and sponsored activities such as walks and runs. The Charity continues to be extremely grateful to all our loyal supporters as without them we could not hope to continue our work. World Heart Day 2010 Unfortunately we were not as fortunate with the weather on World Heart Day 2010 but a hardy band of nearly 300 walkers took part walking or cycling the 3, 6 or 9 mile routes. Feedback from those taking part was extremely positive and a total of 21,331 was raised on the day. The funds raised from the day were used to purchase a state-of-the-art portable echo machine, which can be used in clinics, research trials or emergency situations. It powers up in just 15 seconds and gives a clear picture of what s happening to the heart. Carol Service at Ely Cathedral 2010 The Ely Carol Service 2010 was held for the first time on a Saturday afternoon which proved to be very popular with a record number of people attending. The funds raised amounted to some 6,418 and we are very grateful to everyone for taking time out of the busy pre-christmas preparations to join us for what is always a truly magical event. Page 11

12 Grand Summer Draw 2010 The Charity s summer draw raised the wonderful sum of over 44,160 this year. This could not have been achieved without all our supporters who bought or sold tickets, and we are so grateful to everyone who took part. Special thanks also go to our wonderful hospital volunteers, who spent many hours patiently separating and folding the returned tickets. The first prize of 1,000 in cash was won by Mr Tucker of Cambridgeshire. Papworth Hospital Christmas Goods In addition to the support we received for the Christmas Carol Service many of our supporters were keen to purchase the annual range of Christmas cards, diaries and calendars which went on sale in the Autumn of This year the sale of this seasonal merchandise raised nearly 6,721 and very special thanks are owed to our volunteers who came in to help us fulfil the hundreds of orders received. PAPWORTH HOSPITAL CHARITY LOTTERY The first full year of play saw 546 players taking part in the weekly lottery draw. The lottery is part of the Unity Lottery a joint venture between a number of local and national charities and Sterling Lottery Management. A top prize of 25,000 is available for players and the charity receives 50p for every 1 line played with the remainder being spent on prize money and administration. During the year one of our lucky players was fortunate enough to win 1,000 and a number of others have received cash prizes of 25 and 5. Lottery players are currently bringing in 356 to the Charity each week and we are very grateful to everyone who chooses to support us in this way. FUTURE PLANS FUNDRAISING STRATEGY As the Chairman mentioned in his report a 3 year Fundraising Strategy has been adopted by the Board of Trustees. The three main planks of this are: Raising the profile of Recruiting and retaining existing donors Planning and implementing a successful Capital Campaign in relation to the hospital s move to the Cambridge Biomedical Campus. Work is being carried out to ensure that all the future activities of the Charity relate back to one of these three planks. Some examples of this are given below. Raising the Charity Profile Charity Restructure In the coming year plans will be put in place to restructure the current charity structure. This will aim to streamline charity administration, make the various sub-funds more reflective of the existing business funds in existence and also to provide a framework for monitoring charitable spending. Page 12

13 This exercise has given the Charity an opportunity to work closely with both medical and non-medical staff at the hospital and has significantly raised the internal profile of the Charity. Recruiting and Retaining Donors This will also include a restructure of the charitable database to give us clearer management information not only on what donors are wishing to support but how they are choosing to raise funds for that support. A second donor questionnaire will be issued to ensure that the Charity is meeting the needs of our donors and also to give us further information about our donors to aid with future planning of recruitment and retention strategies. This restructure will also involve the planning of the Charity Office staffing itself with each of the existing roles within the charity being reviewed against the existing and developing fundraising strategy. Capital Campaign Plans for the capital campaign are now well advanced and the various statutory permissions have all been granted. This has given us the opportunity to start the cultivation process of a number of high net worth donors and other fundraising initiatives. Updates on the progress of these initiatives will be reported in the future. Finally, a big thank you!! To all those who share our aspiration of maintaining Papworth Hospital as a national and international centre of excellence we say thank you very much. The support of all no matter how large or small their donation helps us to ensure that: - Our patients receive the very best care possible; Our doctors and nurses are always equipped with the latest equipment and education and; Our researchers can continue to find new ways of treating heart and lung disease. Page 13

14 PAPWORTH HOSPITAL NHS FOUNDATION TRUST CHARITY ACCOUNTS 2010/11 NATIONAL HEALTH SERVICE PAPWORTH HOSPITAL NHS FOUNDATION TRUST CHARITY FUNDS HELD ON TRUST ANNUAL ACCOUNTS 2010/11 The accounts of the Funds Held on Trust by the Papworth Hospital NHS Foundation Trust Charity. FOREWORD These accounts have been prepared by the Trustee in accordance with the Charities Act 1993, the Charities (Accounts and Reports Regulations) 2008 and the Statement of Recommended Practice "Accounting and Reporting by Charities". STATUTORY BACKGROUND The Papworth Hospital NHS Foundation Trust charitable funds held on trust are registered with the Charity Commission and include funds in respect of the Papworth Hospital. MAIN PURPOSE OF THE FUNDS HELD ON TRUST The main purpose of the charitable funds held on trust is to apply income for any charitable purpose relating to the National Health Service wholly or mainly for the services provided by the Papworth Hospital NHS Foundation Trust. 14

15 PAPWORTH HOSPITAL NHS FOUNDATION TRUST CHARITY ACCOUNTS 2010/11 INDEPENDENT AUDITORS REPORT TO THE TRUSTEE OF PAPWORTH HOSPITAL NHS FOUNDATION TRUST CHARITY We have audited the financial statements of Papworth Hospital NHS Foundation Trust Charity for the year ended 31 March 2011 which comprise the Statement of Financial Activities, the Balance Sheet, and the related notes. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Respective responsibilities of trustees and auditors As explained more fully in the Trustees Responsibilities Statement on pages 5 and 6, the trustees are responsible for the preparation of financial statements which give a true and fair view. We have been appointed as auditors under section 43 of the Charities Act 1993 and report in accordance with regulations made under section 44 of that Act. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board s Ethical Standards for Auditors. This report, including the opinions, has been prepared for and only for the charity s trustees as a body in accordance with Regulation 27 of The Charities (Accounts and Reports) Regulations 2008 and for no other purpose. We do not, in giving these opinions, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing. Scope of the audit of the financial statements An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the charity s circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the trustees; and the overall presentation of the financial statements. In addition, we read all the financial and nonfinancial information in the Trustees Annual Report to identify material inconsistencies with the audited financial statements. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report. 15

16 PAPWORTH HOSPITAL NHS FOUNDATION TRUST CHARITY ACCOUNTS 2010/11 Opinion on financial statements - In our opinion the financial statements: give a true and fair view of the state of the charity s affairs as at 31 March 2011 and of its incoming resources and application of resources, for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and - have been prepared in accordance with the requirements of the Charities Act Matters on which we are required to report by exception We have nothing to report in respect of the following matters where the Charities Act 1993 requires us to report to you if, in our opinion: - the information given in the Trustees Annual Report is inconsistent in any material respect with the financial statements; or - sufficient accounting records have not been kept; or - the financial statements are not in agreement with the accounting records and returns; or - we have not received all the information and explanations we require for our audit. XXXXXXXXXXXXXXXXXXX PricewaterhouseCoopers LLP Chartered Accountants and Statutory Auditors Norwich 26th January 2012 PricewaterhouseCoopers LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act

17 PAPWORTH HOSPITAL NHS FOUNDATION TRUST CHARITY ACCOUNTS 2010/11 Statement of Financial Activities for the year ended 31 March /10 Note Unrestricted Restricted Total Total Funds Funds Funds Funds Incoming resources Incoming Resources from generated funds: Voluntary Income: Donations Legacies ,436 Sub total voluntary income: ,218 2,038 Activities for generating funds Investment income Total incoming resources 1, ,446 2,256 Resources expended Costs of generating funds Charitable Activities 3 Patients' welfare and amenities Staff welfare and amenities Research Sub total direct charitable expenditure 1, ,427 1,095 Governance costs Total resources expended 1, ,528 1,171 Net incoming resources before gains and losses (327) 245 (82) 1,085 Gain on revaluation and disposal of investment assets Net movement in funds 6 (137) ,769 Fund balances brought forward at 31 March 2010 (as restated) 13 5,001 2,010 7,011 5,242 Fund balances carried forward at 31 March ,864 2,348 7,212 7,011 The notes at pages 19 to 25 form part of these accounts. All incoming resources and resources expended derive from continuing activities. 17

18 PAPWORTH HOSPITAL NHS FOUNDATION TRUST CHARITY ACCOUNTS 2010/11 Balance Sheet as at 31 March 2011 Notes Unrestricted Restricted Total at 31 Total at 31 Funds Funds March 2011 March 2010 (as restated) Fixed Assets - Investments Cash held Equity held 7 2,807 1,321 4,128 3,561 Total Fixed Assets - Investments 2,948 1,387 4,335 3,867 Current Assets Stocks Debtors Short term investments and deposits 8 1, ,500 1,250 Cash at bank and in hand ,030 Total Current Assets 2,304 1,085 3,389 3,337 Creditors: Amounts falling due within one year Provisions for liabilities or charges Total Current Liabilities Net Current Assets 1, ,877 3,144 Total Net Assets 4,864 2,348 7,212 7,011 Funds of the Charity Income Funds: Restricted ,348 2,348 2,010 Unrestricted , ,864 5,001 Total Funds 4,864 2,348 7,212 7,011 The notes at pages 19 to 25 form part of these accounts. Signed: Position: Chief Executive Date: 26th January

19 PAPWORTH HOSPITAL NHS FOUNDATION TRUST CHARITY ACCOUNTS 2010/11 Notes to the Accounts Accounting Policies Accounting Convention These financial statements have been prepared under the historic cost convention, as modified for the revaluation of certain investments, and in accordance with applicable United Kingdom accounting standards, the Charities Act 1993 and the Statement of Recommended Practice "Accounting and Reporting by Charities" issued by the Charities Commissioners in 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) ii) iii) entitlement - arises when a particular resource is receivable or the Charity's right becomes legally enforceable; 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 i) Assets given for distribution by the funds are included in the Statement of Financial Activities only when distributed. ii) Gifts made in kind but in trust for conversion into cash and subsequent application by the funds are included in the accounting period in which the gift is sold. In all cases the amount at which gifts in kind are brought into account is either a reasonable estimate of their value to the funds or the amount actually realised. Two members of staff employed by Papworth Hospital NHS Foundation Trust spent time preparing the Papworth Hospital NHS Foundation Trust Charity accounts. The cost of this time is not recharged to the Charity as the cost is not material. c) Legacies Legacies are accounted for as incoming resources once the receipt of the legacy becomes virtually certain. This will be once confirmation has been received from the representatives of the estates that payment of the legacy will be made or property transferred and once all conditions attached to the legacy have been fulfilled. d) Investment Income Investment income from short term investments and equity are apportioned to each fund based upon the balance of that fund at the end of the month the income is received. 19

20 PAPWORTH HOSPITAL NHS FOUNDATION TRUST CHARITY ACCOUNTS 2010/ Resources expended The Charity's accounts are prepared in accordance with the accruals concept. A liability (and consequently, expenditure) is recognised in the accounts when there is a legal or constructive obligation, capable of reliable measurement, arising from a past event. a) Charitable activities Grants payable are payments made to third parties (including NHS bodies) in the furtherance of the objectives of the Charity. They are accounted for fully in the year the commitment arises. Activities undertaken directly are payments made by the Charity in furtherance of the objectives of the Charity. They are accounted for on an accruals basis where the conditions for their payments have been met. Support costs are those costs that do not themselves produce or constitute the output of the Charity, but are necessary in order to deliver an activity. These costs are apportioned across charitable activities in proportion to total spend. b) Costs of generating funds Costs of generating funds includes all expenditure associated with generating incoming resources from all sources other than from undertaking charitable activities. This includes costs of fundraising, trading and associated costs and costs of managing investments. c) Governance costs Governance costs comprise of all costs incurred in the governance of the Charity. This includes costs related to the statutory audit of the Charity. These costs are apportioned to each fund based upon the fund balance at the end of the financial year. d) Staff Costs The Charity does not employ any staff. Staff are employed by Papworth Hospital NHS Foundation Trust and some costs (e.g. fundraising staff costs) are recharged to the Charity. 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. The major funds held within these categories are disclosed in note 13. Funds where the capital is held to generate income for charitable purposes and cannot itself be spent are accounted for as endowment funds. There are no endowment funds held during this accounting period. Other funds are classified as unrestricted funds. Funds which are not legally restricted but which the Trustees have chosen to earmark for set purposes are classified as "designated" within unrestricted funds. All transfers between funds are approved by either the Chief Executive or the Director of Finance of Papworth Hospital NHS Foundation Trust, who are both representatives of the Corporate Trustee of the Charity. Restricted monies are not transferred to unrestricted funds. 1.5 Investment Fixed Assets Investment fixed assets comprise of shares traded on a daily basis where the valuation is based on the market value at the balance sheet date, and also cash held with the investment managers for future investment in equity. 20

21 PAPWORTH HOSPITAL NHS FOUNDATION TRUST CHARITY ACCOUNTS 2010/ Realised gains and losses 1.7 Stocks All gains and losses are taken to the Statement of Financial Activities as they arise. Realised gains and losses on investments are calculated as the difference between sales proceeds and opening market value (or date of purchase if later). Unrealised gains and losses are calculated as the difference between market value at the year end and opening market value (or date of purchase if later). Stock is recognised in the accounts at the lower of cost and net realisable value. 1.8 Change in the Basis of Accounting There has been no change in the basis of accounting during the year. 1.9 Irrecoverable VAT Irrecoverable VAT is charged against the category of resources expended for which it was incurred. 21

22 PAPWORTH HOSPITAL NHS FOUNDATION TRUST CHARITY ACCOUNTS 2010/11 Details of 2 Unrestricted Restricted Total Total investment Funds Funds 2010/ /10 income Funds Funds Investments in listed equities Short term investments and deposits Analysis of 3.1 Activities Support Total Total Charitable undertaken costs 2010/ /10 Activities directly Funds Funds Patients' welfare and amenities Staff welfare and amenities Research , ,427 1,095 Analysis of 3.2 Unrestricted Restricted Total Total Support Funds Funds 2010/ /10 Costs Funds Funds Salary costs recharged * Administration costs Software costs * The salary costs recharged consist of the costs of those employees who are employed by Papworth Hospital NHS Foundation Trust, but work for the Fundraising department. It also includes a proportion of the salary costs of the Charitable Funds Administrator. Details of 4 Unrestricted Restricted Total Total Resources Funds Funds 2010/ /10 Expended - Funds Funds Costs of generating funds Costs of generating voluntary income Costs of fundraising trading including costs of goods sold Costs of managing investments Analysis of 5 Unrestricted Restricted Total Total Governance Funds Funds 2010/ /10 Costs Funds Funds Auditors remuneration Internal audit fees Auditors remuneration is shown inclusive of VAT. The VAT exclusive fee is 6,

23 PAPWORTH HOSPITAL NHS FOUNDATION TRUST CHARITY ACCOUNTS 2010/11 Changes in 6 Unrestricted Restricted Total Total Resources 2010/ /10 Available Funds Funds Funds Funds for Charity Use Net movement in funds available for future activities (137) ,769 Analysis of / /10 Fixed Asset 7.1 Fixed Asset Investments: Investments Smith and Williamson Investment Managers Market value at 1 April 3,561 2,070 Add: Additions of shares 813 1,179 Less: Disposals at carrying value (510) (321) Net gain / (loss) on revaluation Market value at 31 March 4,128 3,561 Historic cost at 31 March 3,613 3,390 Cash held with Smith and Williamson Investment Managers at 31 March The valuation of the investments is at 31 March 2011 and may not be realised at the date the investments are disposed of. Shares were purchased and sold during the year by Smith and Williamson. The historic cost represents the value of shares after purchases and sales at 31 March 2011 before the shares were revalued. Cash held with Smith and Williamson is for future investment. The majority of the cash held is the balance of the sale proceeds from the sale of shares, less the purchase of shares, with some additional cash as a result of dividend income received. Cash held with Smith and Williamson for reinvestment is all held within the UK. 7.2 Market value: 31 March March 2010 Total Total Investment listed on a recognised stock exchange held Within the UK 2,826 2,502 Outside the UK 1,302 1,059 4,128 3,561 Short term 8 The current asset investments of 2,500k (2009/10 1,250k ) are sums held on deposit to facilitate investments on cash flow and the fulfillment of obligations. No current asset investments were held in non cash deposits investments or outside of the UK. Analysis of 9 Debtors: 31 March March 2010 Debtors Amounts falling due within one year: Accrued income 10 7 Other debtors - Donations

24 PAPWORTH HOSPITAL NHS FOUNDATION TRUST CHARITY ACCOUNTS 2010/11 Analysis of 10 Creditors: 31 March March 2010 Creditors Amounts falling due within one year: Amounts due to Papworth Hospital NHS Foundation Trust Other creditors Total creditors falling due within one year Cash Flow 11 The Papworth Hospital NHS Foundation Trust Charitable Fund, which meets the definition of a small company, has applied the FRS1 exemption and has not prepared a cash flow statement. Analysis of 12 Salaries for Total Provisions Research At 1 April Provided during the year At 31 March Analysis of 13.1 Restricted Funds Balance Incoming Resources Gains and Balance Funds 31 March Resources Expended Losses 31 March (as restated) Material funds A R Lockyer Fund B General Heart Treatment (6) 46 1,061 C Heart Research (7) D DS Miller Fund 69 1 (4) 3 69 E Surgical Research Fund (4) F Kathryn Anne Jones Fund 66 8 (1) 3 76 G Dr Shapiro Research (1) H I M Ivey (1) I Cystic Fibrosis (38) 2 52 Others (20) (70) Total 2, (132) 93 2,348 Restatement of 13.2 During the year the charity undertook a review of its restricted funds and identified a number of funds that Funds should have been classified as unrestricted funds. These have been moved into unrestricted funds for 2010/11 and the 2009/10 comparatives restated to show them as unrestricted funds. Additionally one legacy was identified that was recognised as unrestricted income in 2009/10 that was further reviewed and determined to be restricted income, therefore has been moved to a restricted fund as part of the restatement. This review has resulted in the net reclassification of 516k from restricted to unrestricted funds for 2009/10. 24

25 PAPWORTH HOSPITAL NHS FOUNDATION TRUST CHARITY ACCOUNTS 2010/11 Details of 13.3 Name of fund Description of the nature and purpose of each fund material A R Lockyer Fund Funds donated for heart transplants funds - B General Heart Treatment Funds donated for heart patients restricted C Heart Research Comprises funds donated for the general purpose of funds heart research D DS Miller Fund Funds donated for research into heart transplants E Surgical Research Fund Funds donated for use in surgical research F Kathryn Anne Jones Fund Funds donated for the treatment and diagnosis of pulmonary hypertension G Dr Shapiro Research Funds for the benefit of research H I M Ivey Funds donated specifically for Cardiothoracic Research I Cystic Fibrosis Funds donated for Cystic Fibrosis Unit Unrestricted 13.4 Unrestricted funds amounting to 4,864k (2009/10 as restated 5,001k) consist of 4 general funds 2,409k Funds (2009/10 as restated 2,325k) and 29 designated funds totalling 2,455k (2009/10 as restated 2,676k). Within designated funds are funds earmarked for future payment for medical equipment leases contracted for by Papworth Hospital NHS Foundation Trust. The other designated funds have been earmarked for future payment for the direct benefit of the staff and patients within the directorates of the hospital. Analysis of 13.5 Designated Funds included within unrestricted 31 March March 2010 (as restated) Funds Material designated funds Description of the nature and purpose of each fund V M Gledhill For use in various cardiac research activities 1,200 1,402 Mesothelioma Trust Fund For the benefit of mesothelioma patients and service Cardiac General For the benefit of cardiac patients, their families and staff of the cardiac department Electrophysiology For the benefit of electrophysiology patients, their families and staff of the cardiac department Cardiac Rehab Fund For the benefit of cardiac rehab patients, their families and staff of the cardiac department Transplant General For the benefit of staff and patients of the transplant unit Vision for Research For all aspects of research activity TCCA General For the benefit of the patients, their families and the staff of TCCA Medical Equipment Fund For the purchase of medical equipment Others (20) Total 2,455 2,676 Contingencies 14 There are no capital commitments in 2010/11 (2009/10 0) and Commitments There are no contingent liabilities. Related Party 15 The Papworth Hospital NHS Foundation Trust Charity has made revenue and capital payments Transactions to the Papworth Hospital NHS Foundation Trust during 2009/10. The amount paid was 1,095k (2009/10 1,092k) and there was a creditor at the end of the year of 298k (2009/10 154k). No representative of the corporate Trustee has received remuneration or expenses in connection with their activities as representatives. 25