Endowments Draft Accounts 201819 to AGM with Photos and cover€¦ · 1+6 *udpsldq (qgrzphqw )xqgv...

Grampian Health Board Endowment Fund

(Operating as NHS Grampian Endowment Funds)

Trustees’ Report and Accounts

Year Ended 31 March 2019

Charity Number SC017296

NHS Grampian Endowment Funds

1

Foreword from the Chair In 2018/2019 the Endowment Fund has continued to support the health and welfare of people in Grampian through our grant making, working in partnership with NHS Grampian and other key stakeholders. Financially, this has been a stable year for the Endowment Fund with donations remaining at an encouraging level, although legacies, always less predictable, show a downturn from a very high figure in the previous year. Our return on investment has yielded a positive return which was in line with predictions set at the start of the year. Due to the generosity of our donors and stable

investment activity, the Endowment Fund was able to commit almost £4 million in charitable expenditure to activities, services and equipment during 2018/19. Reflecting the population we serve, the Endowment fund grant giving activity was diverse as the following examples illustrate. We supported community groups through the Small Grants Scheme. These have ranged from rehabilitation exercise classes to singing groups to Men’s Sheds. We supported staff training and development. This year this included the purchase of neonatal resuscitation manikins for use at Aberdeen Maternity Hospital and Dr Gray’s and ligature manikins for Royal Cornhill Hospital. We supported the purchase of a range of equipment to improve patient experience. The Lithotripter for urology patients was delivered in January 2019 and is providing the most up to date technology for the treatment for renal stones, replacing a mobile service with a permanent facility at ARI. We funded the provision of water coolers and ice machines to improve the comfort of patients at hospitals throughout Grampian. We have also funded the refurbishment of day rooms and replaced bathrooms with more user friendly wet rooms, all of which contribute to improved patient experience. The fund also supported a range of research projects to ensure we continually develop innovative and effective methods to prevent, diagnose and treat illness. This included major research projects into heart, renal, breast cancer and Parkinson’s Disease, as well as a wide range of smaller research projects into a range of health related conditions. In the next year, we plan to make the charity more visible and accessible using our branding and website, working with fund stewards, with NHS Grampian and the local Health and Social Care Partnerships to widen our reach. We also plan to develop grant making priorities to ensure we align grant making activity with local strategy and local needs, ensuing every penny we spend makes a tangible difference to the lives of service users, patients, carers and staff across Grampian.


2

Foreword from the Chair (continued) Of course none of this grant making activity is possible without our donors, patients, families and our staff who donate and fundraise for us. On behalf of all the Trustees, I thank you for your tremendous generosity. Luan Grugeon Chair of Trustees Grampian Health Board Endowment Fund (Operating as NHS Grampian Endowment Funds)


3

Our Vision The enhancement of healthcare and patient welfare in Grampian

Our Mission Work in partnership to achieve the greatest impact and promote first class healthcare by delivering:

Improvement of the physical and mental health of the Grampian Health Board’s population and our staff;

Prevention, diagnosis and treatment of illness;

Provision of services and facilities in connection with the above; and

Research into any matters relating to the causation, prevention,

diagnosis or treatment of illness, or any other matters relating to the health service as the Trustees see fit.


4

Contents Page No Trustees’ Report

5

Statement of Responsibilities of the Trustees

23

Independent Auditor’s Report

24

Statement of Financial Activities

27

Balance Sheet

28

Statement of Cash Flows

29

Notes to the Accounts

30


Trustees’ Report for the Year Ended 31 March 2019

5

The Trustees present their report along with the audited financial statements of the NHS Grampian Endowment Funds (the Charity) for the year ended 31 March 2019. The results of the Charity are consolidated into the accounts of Grampian Health Board on the basis that all Trustees are also members of the Grampian Health Board so the Charity effectively operates under common control for accounting purposes. Purpose and Principles All Health Board members are Trustees of the charity under the terms of the National Health Services (Scotland) Act 1978. All Trustees carry a legal duty to ensure that all donated funds are used in accordance with the charitable purpose and key principles below. Purpose

To adhere to the vision and mission approved by the Trustees.

To observe any conditions attached to a donation or legacy prescribed by a donor to the charity, so far as is reasonably practicable, and consistent with the above purpose and the law.

Principles

The grant of endowment funds should not substitute for a core provision, nor should endowment funds be used to cover a responsibility of Grampian Health Board that is a direct requirement of health and safety or employment law or a ministerial policy direction.

An employee of Grampian Health Board may only benefit from the Charity where the expenditure is aimed at improving health, welfare or the prevention, diagnosis or treatment of illness for Grampian Health Board’s residents. Any benefit to the employee must be incidental to (and necessary for) that benefit to be realised.

Strategic Objectives and Activities The Fund receives donations and/or legacies from patients, their relatives, the general public and other organisations. The Trustees hold all donated funds upon trust and apply the income and, at their discretion, so far as may be permissible, the capital, for any charitable purpose or purposes that enhance healthcare and patient welfare in Grampian, through:

improvement of the physical and mental health of the Grampian Health Board’s population and our staff;

prevention, diagnosis and treatment of illness;

provision of services and facilities in connection to the above; and

research into any matters relating to the causation, prevention, diagnosis or treatment of illness, or any other matters relating to the health service as the Trustees see fit.


Trustees’ Report for the Year Ended 31 March 2019 (Continued)

6

The Trustees consider the following when discharging their responsibilities in line with the purpose and principles of the Fund:

observance of any conditions attached to a donation or legacy prescribed by a donor, so far as reasonably practicable and consistent with the charitable purpose and the law;

the grant of endowment funds should not substitute a core provision nor should endowment funds be used to cover a responsibility of Grampian Health Board that is a direct requirement of health and safety or employment law or a ministerial policy direction;

an employee of Grampian Health Board may only benefit from the charity where the expenditure is aimed at improving health, welfare or the prevention, diagnosis or treatment of illness for Grampian Health Board residents. Any benefit to the employee must be incidental to (and necessary for) that benefit to be realised; and

where service changes have taken place or it is impractical to maintain a separate designated fund, the Trustees have the ultimate discretion for the application of the fund, in accordance with the NHS (Scotland) Act 1978, whilst respecting the wishes of the donors.

the principles of the Charity have been applied consistently and there has been no retrospective approval of endowment funds to cover expenditure that had previously been charged to exchequer funds.

Grant-Making Policy Donations can be made online at https://www.nhsgcharities.com/donate/, by cheque to NHS Grampian Endowment Fund or in cash to the Endowment Team at Westholme, Woodend Hospital or to the General Office at Aberdeen Royal Infirmary. All applications for the use of Endowment Funds follow an established process which involves a pre-approval assessment against the criteria set out on page 21. Grant payments by the Charity are made in line with the charitable purpose of the Charity i.e. the enhancement of healthcare and patient welfare in Grampian. Trustees delegate responsibility for the management of individual funds to named fund stewards who may incur expenditure, subject to the required authorisation process, provided the expenditure falls within the objects of the fund, that the grant request is supported by Grampian Health Board and that the funds are available to meet the request. The majority of endowment-funded projects are undertaken within Grampian Health Board. However, in recognition of the voluntary work done by local community groups, NHS Grampian Endowment Fund operates a small grant scheme which invites applications for up to £5,000 to help to initiate, maintain or expand projects with a direct health or wellbeing benefit to the people of Grampian.



7

Investment Policy All funds are invested to achieve a balance of capital growth and income. The Charity’s Investment Manager is Aberdeen Standard Capital Limited. For the Charity to achieve its stated investment objective, as detailed in the following paragraph, the Trustees have authorised its Investment Managers to adopt a medium risk approach. This corresponds to a diversified portfolio invested in a broad spread of equities, invested both directly and indirectly through pooled funds. The portfolio also includes a proportion of fixed-interest securities and cash. The Charity has a formal Investment Policy, which the Trustees review on a regular basis. The investment objective is to achieve a balance between capital growth and the generation of income. The Charity will not directly invest in the securities of organisations that are involved in activities incompatible with the objective and ethos of the National Health Service. A Short Life Working Group of Trustees reviewed the investment policy and a revised Investment Policy was accepted by the Trustees at the AGM in June 2017. Structure, Governance and Management The Scottish Ministers appoint the Trustees of the Charity by virtue of their appointment to Grampian Health Board. Appropriate training is given to new Trustees following appointment which enables them to carry out their duties as Trustees. The Charity’s governance framework is outlined within an agreed Charter and includes a schedule of decisions reserved for Trustees. An Endowment Sub-Committee deals with the operational business of the Charity and robust Operating Instructions for administrative processes are in effect in order that Trustees have assurance on the internal control environment. The Trustees of the Charity during 2018-19 and up to the date the financial statements were approved are listed below: Grampian Health Board Non-executive Members Mrs Luan Grugeon Chair of Trustees from 7 February 2019 Dame Anne Begg Chair of Trustees to 31 December 2018 Mrs Amy Anderson Mrs Rhona Atkinson Councillor Frank Brown (to 11 September 2018) Ms Kim Cruttenden (from 1 October 2018) Councillor Isobel Davidson Ms Joyce Duncan (from 1 November 2018) Mrs Sharon Duncan (to 31 August 2018) Professor Steven Heys (to 11 March 2019) Mrs Christine Lester (to 31 October 2018) Miss Rachael Little (from 1 September 2018) Professor Stephen Logan (to 31 December 2018) Councillor Douglas Lumsden Dr Lynda Lynch Dr Helen Moffat (to 30 September 2018) Councillor Shona Morrison (from 12 September 2018)



8

Grampian Health Board Non-executive Members (continued) Mr Jonathan Passmore Mr Sandy Riddell (from 1 November 2018) Mr Dennis Robertson (from 1 February 2019) Mr Eric Sinclair (to 31 December 2018) Mr John Tomlinson (from 1 February 2019)

Grampian Health Board Executive Members Mr Malcolm Wright Chief Executive (to 31 August 2018) Professor Amanda Croft Interim Chief Executive (from 1 September 2018)

Director of Nursing, Midwifery and Allied Health Professions

Dr Nick Fluck Medical Director Mr Alan Gray Mrs Susan Webb

Director of Finance Director of Public Health

No key management personnel are directly employed by the Charity.

Decisions reserved to Trustees The following matters are reserved for approval by the Trustees:

any strategy or policy matters relevant to the Charity including any proposed changes to the Charter;

the arrangements for governance and management administration of the charity’s activities including terms of reference of any committee or sub-committee to be established by the Trustees;

the investment strategy;

the reserves policy;

the annual report and accounts;

the appointment of the external auditor;

the appointment of investment managers; and

membership and constitution of Sub-Committees.

Decisions Delegated to the Endowment Sub-Committee The Charter provides for delegation of various operational functions to an Endowment Sub-Committee to carry out the day to day business of the charity. These delegated functions include:

approval of the annual General Endowment Fund income and expenditure budgets;



9

Decisions Delegated to the Endowment Sub-Committee (continued)

monitoring financial performance and ensuring that adequate control arrangements exist to provide assurance to Trustees that:

Expenditure is consistent with the defined purpose of the Charity; Expenditure is legally permitted and consistent with the charitable status of

the Charity; and The expenditure is consistent with Grampian Health Board policy.

authorising Endowment Fund expenditure in accordance with the Grampian

Health Board Scheme of Delegation; and monitoring investment performance.

Endowment Sub-Committee Membership Dame Anne Begg, Chair (to 30November 2018) Mrs Luan Grugeon, Chair (from 7 February 2019) Councillor Frank Brown (to 11 September 2018) Mrs Sharon Duncan (to 31 August 2018) Mr Alan Gray Mrs Laura Gray Professor Steven Heys (to 11 March 2019) Miss Rachel Little (from 1 September 2018) Councillor Douglas Lumsden (from 1 January 2019) Councillor Shona Morrison (from 5 November to 31 December 2018) Note: Mrs Laura Gray, Grampian Health Board Director of Corporate Communications and Board Secretary, is a member of the Endowment Sub-Committee but not a Trustee of the Charity. Mr Alan Gray, Director of Finance is the Executive Director of Grampian Health Board with responsibility for the management of the Charity. The individual fund stewards approve all expenditure up to £5,000. Thereafter, the Director of Finance approves expenditure up to £15,000 and the Director of Finance and the Endowment Sub-Committee Chair approve all expenditure requests up to £50,000. The Charity’s scheme of delegation allows, during periods of absence, the Deputy Director of Finance or the Assistant Director of Finance to act on behalf of the Director of Finance and any other member of the Endowment committee, who is also a Trustee of the charity, to act on behalf of the Chair of Trustees. For sums above £50,000, approval from the Endowment Sub-Committee is required. Mr Garry Kidd, Assistant Director of Finance, acted as the principal officer overseeing the day to day financial management and accounting for the charitable funds during the year. The Operational Manager for Grampian Health Board Charities is responsible for ongoing administration of the Charity, advising and training fund stewards and management teams in the use of endowment funds, and for making recommendations to the Trustees for the use of the Charity’s funds.



10

Endowment Sub-Committee Membership (continued) The Charity is made up of 925 individual funds as at 31 March 2019 (31 March 2018: 1,045), and the notes to the accounts distinguish the different types of funds held. The Trustees fulfil their legal duty by ensuring that funds are spent in accordance with the objectives of each fund and in line with the wishes of the donors who give generously to enhance healthcare and patient welfare in Grampian. Reference and Administrative Details Name The legally registered name of the Charity is Grampian Health Board Endowment Fund (NHS Grampian). The Charity operates under the common name of NHS Grampian Endowment Funds. Charity Number SC017296 Headquarters The current principal address of the Charity is: NHS Grampian Endowment Funds Finance Department, Westholme Woodend Hospital Queens Road Aberdeen.AB15 6LS Key Advisor Details Auditor Scott Moncrieff Statutory Auditor 25 Bothwell Street Glasgow. G2 6NL

Investment Managers Aberdeen Standard Capital Limited 1 George Street Edinburgh. EH2 2LL

Bankers Government Banking Service – National Westminster Bank 2nd Floor 280 Bishopsgate London. EC2M 4RB

Solicitors Central Legal Office NHS National Services Scotland Anderson House, Breadalbane Street Bonnington Road, Edinburgh. EH6 5JR Turcan Connell Princes Exchange Earl Grey Street, Edinburgh. AH3 9EE



11

Review of the Finances and Achievements of the Fund The Charity relies upon the generosity of patients, their relatives and friends, who have experienced the care of Grampian Health Board, and other donors who are generous in their support of the Charity. The net assets of the Charity as at 31 March 2019 were £40.374 million (2017/18 £37.227 million).The increase in net assets of £3.147 million (2017/18 £5,789 million decrease) relates to an in-year surplus on charitable activities of £0.413 million (2017/18 £5.069 million deficit), and a net gain on investments of £2.734 million (2017/18 £0.720 million loss). Total income for the year was £3.017 million (2017/18: £4.998 million), £1.509 million (2017/18: £3.320 million) relating to donations and legacies and £1.508 million relating to dividends and interest on investments (2017/18: £1.678 million).The fall in income relates mainly to legacies with £0.468 million received in 2018/19 compared to £2.213 million in 2017/18. Income from donations was at a reasonably consistent level between the two years with £1.041 million received in 2018/19 compared to £1.107 million in 2017/18. The reduction in income from investments relates mainly to the impact of recent political uncertainty on financial markets. The financial position is detailed in the Statement of Financial Activities and Balance Sheet on pages 27 and 28 respectively. The Endowment Sub-Committee reviews the financial position of the Charity and flow of income and expenditure in order to ensure the affordability of commitments at each of its quarterly meetings. Grant-Making Activity Reported expenditure on grants in 2018/19 was £2.232 million (2017/18 £9.710 million), as detailed in note 7 to the accounts. During the year however a number of planned commitments, provided for in prior years, did not materialise and the gross expenditure on grant commitments, before adjusting for the impact of reversing these prior year provisions (£1.695 million) was therefore £3.927 million. This includes payments totalling £2.782 million (2017/18: £3.887 million) made to Grampian Health Board to enable a range of research and other activities for the benefit of patients and staff. Grants made to other charities that directly support Grampian Health Board are detailed in Note 4 to the financial statements. In 2018/19, the Charity approved commitments for projects throughout Grampian which will enhance services provided by NHS Grampian. Applications for charitable funding are submitted by members of staff from all areas of NHS Grampian and Health and Social Care Partnerships. Each application must include a statement on the “demonstrable benefit to patients”. The Trustees are mindful of the Charity’s vision to enhance healthcare and patient welfare in Grampian. During the year, the Charity has worked in partnership with NHS



12

Grant-Making Activity (Continued) Grampian and the Health and Social Care Partnerships as well as with independent charities which support hospitals and facilities throughout Grampian.

As the Baird Family Hospital and the Anchor Centre project progresses, the Endowment Fund is working with partner charities, Friends of Anchor, Friends of Neonatal (The ARCHIE Foundation) and the University of Aberdeen Development Trust to support their campaigns to raise funds for the new facilities and for research. A joint fund raising campaign was launched in October 2018 at which the partner charities highlighted their aspirations for the new hospitals and pledged to raise funds to create truly exceptional patient environments at these new facilities.

The following sections summarise the activities of the Endowment Fund during the year identified against the key aspects of our mission statement:- 1. Improvement of the physical and mental health of the Grampian Health

Board’s population and our staff The Endowment Fund is

keen to nurture all staff involved in the delivery of health services and each year allocates £50,000 to the Grampian Area Partnership Forum to disburse to projects which support staff to deliver a high level of care. Successful applications have included support for staff attending specialist training events, speakers and trainers providing sessions locally for groups of staff and the

provision of furniture and equipment for staff rooms. Endowment Funds are supporting a project to recognise the work of Nurses, Midwives and Allied health Professionals (Physiotherapists, Occupational Therapists, etc.), over a three year period. Evidence suggests that formal appreciation of the work of individuals enhances the care offered to patients.



13

Grant-Making Activity (continued) The Endowment Fund also supports the Staff Physiotherapy Service to which staff can self-refer and receive prompt advice and treatment. The recorded outcomes of the Staff Physiotherapy Service evidence the range of staff who receive treatment and the effectiveness of the treatment to enable them continue to work and reduce the impact of absence on patient care in areas that otherwise struggle to replace key clinical staff.

The Small Grants Scheme provides grants to community-based organisation which have a direct link to the improvement in physical and mental health of their communities. Successful projects this year have included support for Eating Disorders volunteers to attend a national conference, defibrillators for exercise classes and for a group of first responders. Particularly for people with mental health issues, the Charity has made grants to a local group offering a mindfulness and meditation programme, an

alcohol and drugs recovery group and to two local charities which offer support and counselling.

2. Prevention, diagnosis and treatment of illness

Patients undergoing cancer treatment and their families and friends have been particularly generous to the Oncology and Haematology wards and to the ANCHOR Centre. This has enabled additional equipment to be purchased to provide patients with speedier diagnosis and treatment as well as increasing their comfort by providing and maintaining ice making machines and water coolers. Nursing and medical staff have been supported to attend a range of courses and conferences to network with colleagues and take part in learning opportunities.



14

Grant-Making Activity (continued)

A major innovation has been made possible by contributions from a number of specific Endowment Funds: the introduction of Digital Pathology. Patients from across the spectrum of departments at ARI will benefit from slides and specimens being available in a digital format so they are more accessible to clinicians and further opinions can be more speedily sought from experts’ outwith Grampian.

Day of Surgery Admissions Units at ARI and at Woodend will allow patients to stay at home the night before surgery. These units were funded by NHS Grampian and the Endowment Fund contributed by providing more comfortable furnishings and a more pleasant environment to help make these Units relaxing and pleasant areas to wait to be called for surgery. In 2016, the Trustees approved the purchase of a fixed site lithotripter for Urology and following extensive preparations, it became available earlier this year to provide improved and safer treatment of both elective and emergency urinary stone disease. Also in 2016, the Trustees approved the commissioning of a clinical information system for the Intensive Care Unit which has just become operational. Both these innovations bring the latest technology to Aberdeen Royal Infirmary.



15


At the Royal Aberdeen Children’s Hospital, additional syringe pumps, blood glucose monitoring sensors, monitoring systems and fans, workstations for theatres and a resuscitation manikin have all contributed to enhancing patient care. Water coolers have all added to the comfort of young patients. As with other services, charitable funds have allowed staff to attend specialist training events to enhance their skills.

3. Provision of services and facilities in connection to the above

Across Grampian, Community Hospitals in Stonehaven, Fraserburgh, Peterhead, Turriff, Huntly, Keith and Inverurie have benefitted from a wide range of enhancements. These have included

dementia-friendly curtains, doors, bed head protectors, an additional bladder scanner and improvements to the garden at Fraserburgh Hospital

new flooring in areas of Kincardine Community Hospital and the Renal Unit at Peterhead

additional equipment for Community Nurses in Turriff and Pitmedden

upgraded mattresses for Summers Ward in Peterhead Community Hospital

electric shower trolley for patients in Rothieden Ward in Huntly

new furniture for Donbank Ward at Inverurie Hospital conversion of three shower rooms to wet rooms at Turner Hospital, Keith

The Endowment Fund is also supporting a series of education classes in Fraserburgh, over three years, for patients diagnosed with diabetes.

In Moray, patients and their families have been particularly generous in relation to The Oaks and this has enabled work to start on a new craft room. Charitable funds also enable a range of activities to be offered to people who attend this day hospital including hairdressing, exercise classes, mindfulness and relaxation sessions, art therapy, massage and aromatherapy.



16

Grant-Making Activity (continued) Funds have been made available to enhance the environment of community facilities throughout Grampian. This has enabled, for example, GP surgeries to be redecorated, more comfortable seating to be available at dental practices and background music systems to be installed to aid both patient confidentiality and relaxation. Dementia is recognised as an increasing issue in the elderly population and the Endowment Fund was pleased to support, for the second year, a Dementia Conference at the Aberdeen City Exhibition Centre.

Although work is progressing on the Baird Family Hospital, there is still some time before the Baird Family Hospital relocates. The Endowment Fund was pleased to fund alterations to the Neonatal Unit at Aberdeen Maternity Hospital to provide a more welcoming reception area and portable air conditioning units for the Labour Wards. Charitable funds have also been used for staff to attend national and international conferences and for trainers to come to Aberdeen to help staff to make informed decisions about the new hospital and the optimum methods of caring for women and babies, particularly neonates.

Royal Cornhill Hospital benefitted from a large legacy several years ago and this has supported a number of projects. A new vehicle has been purchased for use by Occupational Therapists visiting patients’ homes to assess them for discharge. New garden furniture has been procured and the furniture in a number of wards upgraded. Way finding signs have been installed to make it easier for patients and their visitors to find their way around the hospital. At Woodend Hospital, charitable funds have supported the installation of new blinds in patient areas, new bedside lockers, chairs and tables, water coolers, an additional full body hoist and shower trolley and the conversion of a bathroom to a wet room. The Endowment Fund also supports activities and treats for patients in the wards for the elderly throughout the year including celebration of national events e.g. the royal wedding and the provision of fish suppers and ice creams.



17


Roxburghe House has benefitted from a redesign of its out-patient areas, again due to the generosity of patients, their families and friends donating to its Endowment Fund and to the Friends of Roxburghe House. The day care facilities are used by around 40 patients every week and the redesign has provided a more spacious room for complementary therapists and a larger area for staff to work with patients on exercise and falls prevention programmes. A new,

larger, assisted shower room has been installed for day care patients who require help with personal hygiene.

4. Research into any matters relating to the causation, prevention, diagnosis or treatment of illness, or any other matters relating to the health service as the Trustees see fit. Research continues to be a priority of the Endowment Fund and this year, circa approval of approaching £1million was given for a range of projects. Each year, the Endowment Fund works with NHS Grampian’s Research and Development Unit to support around 25-30 one-year projects to investigate a range of health-related topics at a cost of around £300,000. In addition to these projects, this year, the Fund has also supported new research investigating aspects of

Lung Cancer Colorectal Disease Falls and Fractures in the Elderly Eye Movements in relation to Mental Health Anaesthetic Toxicity Specialised Physiotherapy for Rheumatology Patients Renal Dialysis Crohn’s Disease Vasculitis Diabetes and MRI Brain Pathology Liver Cancer



18


Research funded by the Endowment Fund also continues into

Parkinson’s Disease Heart Disease Breast Cancer Huntington’s Disease

Investment Performance The market value of the portfolio was £44.247 million as at 31 March 2019 (2017/18 £41.528 million).The net difference between the market value and the initial purchase value of investments at 31 March 2019 was £9.187 million (2017/18 £7.839 million). Unrealised losses have been recognised against general funds whereas unrealised gains are held as a separate revaluation reserve on the Balance Sheet. During the year, the investment portfolio generated an income from interest and dividends of £1.493 million (2017/18 £1.664 million), a net gain on disposal of investments of £1.387 million (2017/18 £0.599 million) and net gain on in year revaluation of investments of £1.347 million (2017/18: net loss of £1.319 million).

The performance of the investments is reviewed on a regular basis in comparison with an agreed benchmark, which comprises the following elements: the FTA Government All Stocks Index (25%), the FTSE All Share Index (47%), the FTSE World excluding UK Index (25%), and Cash (3%). The performance of the Fund for 2019 against the agreed benchmark was as follows: Total Return

%

NHS Grampian Charitable Fund Investment Portfolio Negative (3.0)

Benchmark Indices Negative (4.8)

The portfolio performed well during the year with returns dropping by only 3% compared to the benchmark prediction, a drop of 4.8%. During the first quarter of 2019 (January – March) the portfolio is showing an increase in return of 7.9%, which is ahead of the benchmark for that period of 7.6%. Our investment manager monitors investments to ensure they have an attractive and sustainable long-term return profile with the ability to weather any setback – specifically identifying companies that can generate a long-term attractive return on



19

Investment Performance (continued) invested capital and have consistent cash flow generation. The Endowment Sub-committee monitors the portfolio’s performance at each quarterly meeting. The portfolio holdings for the year compared to the benchmark are summarised as follows: Actual Holdings

Year to 31 Mar 2019

%

Benchmark

%

FTA Government All Stocks Index FTSE All Share Index FTSE World excluding UK Index Cash TOTAL

18.2 43.6 33.4

4.8

100.0

25.0 47.0 25.0

3.0

100.0 The lower than benchmark percentage of holdings in the FTA Government All Stocks Index and the higher than benchmark holdings in the FTSE World (excluding the UK) Index reflects the better performance from equities than from bonds during the year. Funds The total funds held by the Charity at 31 March 2019 are £40.374 million (2017/18 £37.227 million) and comprise the following: 31 March

2019 £million

31 March 2018

£million Funds not available for the general purposes of the Charity:

Restricted Income Funds 23.689 23.218 Permanent Endowment Funds

0.395 0.482

Funds that can only be realised on sale of investments:

Revaluation Reserve 9.872 8.605 Unrestricted Funds Designated for use in specific hospitals 2.262 2.387 General Funds 4.156 2.535 Total 40.374 37.227

There are no material commitments against funds not provided for as liabilities in the accounts.



20

Funds (continued) The Trustees have adopted a formal reserves policy in relation to unrestricted funds driven by the investment objectives to achieve a balance between capital growth and the generation of income. The Trustees have agreed that the reserve level at 31 March 2019 is appropriate to provide long term sustainability and ensure that sufficient investment income is generated to fund the ongoing healthcare and patient welfare activities that are typically funded through unrestricted funds. After consideration, the Trustees have agreed that the unrestricted general fund should not fall below £3 million. Unrestricted funds may be applied to any use within the purpose of the Charity. The Restricted Funds, Permanent Endowment Funds and Revaluation Reserve are excluded from the reserves policy as they do not come within the definition of the £4.156 million “free reserves”. The Trustees actively encourage the application of funds in line with the charitable purposes and in a manner that as far as possible meets donors’ wishes. In addition to the restricted and unrestricted funds held in reserves, the Trustees have the power, if they so wish, to use the income generated from permanent endowments as stipulated within the terms of the donations received. For Permanent Endowments, Trustees must preserve the amount of the original donation, based on the terms of the donations. All funds are invested in line with the Charity’s Investment Policy which was agreed at the AGM in June 2018.With the exception of permanent endowments which are held in perpetuity, all funds are held until required to meet future expenditure commitments which materialise in line with the objectives of the Charity and the specific wishes of the donors. Principal Risks and Uncertainties The Trustees continuously assess and address the major risks associated with the operations and finances of the Charity. There is a formal Risk Management process in place including regular review of the risk register by the Endowment sub-committee to identify and assess risks and evaluate the actions required. The principal risks and uncertainties are:

the fluctuations in the stock markets which affect the performance of the Charity’s investments;

ensuring that the Charity is used appropriately through effective financial controls and reporting processes that mitigate error, mistake and fraud; and

ensuring positive publicity and public perception of the Charity is maintained.

The Trustees have delegated management of these risks and uncertainties to the Sub-committee which has carefully considered these risks and have procedures in place as follows:

1



21

Principal Risks and Uncertainties (continued)

review of the Investment Policy and the performance of the Investment Fund Managers on a regular basis, to ensure that both expenditure and firm financial commitments remain in line with the level of resource available to the Charity. In addition, during times of stock market uncertainty, the portfolio is monitored regularly with a view to reviewing expenditure and commitments if the value of the portfolio falls below a level agreed by the Trustees;

review of the investment portfolio and factors affecting the global economy to

inform decisions to release capital growth of the Charity;

the operational scheme of delegation for the Endowment Funds minimises the risk of inappropriate use of funds;

Fund expenditure is subject to regular review and independent scrutiny by

Audit;

all applications for the use of Endowment Funds follow an established process which involves a pre-approval assessment against the following criteria

The scheme is in line with NHS Grampian’s Clinical Strategy The scheme is in line with the charitable purposes of the fund The Endowment funded elements do not substitute core NHS provision There is demonstrable benefit to patients or the wider population

the Charity liaises with Grampian Health Board’s Corporate Communications team to raise awareness of how the Endowment Fund is used to meet the charitable purposes of the Charity.

Going Concern After making enquiries, the Trustees have a reasonable expectation that the organisation has adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis are included in Note 2 Accounting Policies of the financial statements. Plans for the Future Work continues to raise the profile of the Charity with the public, patients and staff. A fundraising campaign, in collaboration with Friends of Anchor, The Archie Foundation, Friends of the Neonatal Unit and the University of Aberdeen Development Trust was launched in October 2018. The purpose of the campaign is to raise funds for enhancement of the patient environment, additional patient amenities and to support research into cancer and women’s health.



22

Plans for the Future (continued) The Scottish Government has established a Project Group to review the governance of NHS Endowment Funds in Scotland, following a recent investigation by the Office of the Scottish Charity Regulator relating to matters affecting the governance of the Tayside NHS Board Endowment Fund. The key findings from this investigation related to the potential conflict of interest of NHS Board members who are also the Trustees of the NHS Board Endowment funds. Recommendations from the national review are expected to be reported during 2019 and will require the enactment of legislation to amend the 1978 NHS Act before any significant changes to existing governance arrangements can be implemented. There are potentially significant implications for the Charity however, particularly in relation to establishment of a Board of Governance where the majority of control rests with Trustees who are not NHS Board members. A Sub-Group is being established to focus on defining the Charity’s priorities, introducing a fund raising strategy and further developing systems to measure the impact of the Charity. Bequests and Legacies The Charity receives donations from eight Trusts or Legacies annually in excess of £1,600. Five of these are for specific sums, the others are variable. The Charity has received notification of four legacies and the residue of eight estates of which the Executors are unable to provide a value and the residue of three estates at the termination of life rents. The payment of 50% of death benefit has also been notified. See Note 2 (d) to the Accounts, for the accounting policy on Income from Legacies. Acknowledgement The Trustees would like to thank the many individuals, clubs and societies, work groups and other organisations who have donated generously to the Grampian Health Board Endowment Fund throughout the year. The Trustees are also grateful to a number of independent charities which work in partnership with NHS Grampian Endowment Fund to jointly fund a range of projects.



23

Statement of Responsibilities of the Trustees The Trustees are responsible for preparing the Trustees' Annual Report and accounts in accordance with applicable law, regulations and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”. The law applicable to charities in Scotland requires the Trustees to prepare accounts for each financial year which give a true and fair view of the state of affairs of the Charity and of the incoming resources and application of resources of the Charity for that period. In preparing these accounts, the trustees are required to:

select suitable accounting policies and then apply them consistently;

observe the methods and principles in the Charities SORP;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

prepare the accounts on the going concern basis unless it is inappropriate to presume that the Charity will continue in business.

The Trustees are responsible for maintaining adequate accounting records that are sufficient to show and explain the Charity’s transactions and disclose with reasonable accuracy at any time the financial position of the Charity and enable them to ensure that the accounts comply with the Charities and Trustee Investment (Scotland) Act 2005, The Charities Accounts (Scotland) Regulations 2006 and the provisions of the Charity’s constitution. They are also 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 Trustees are responsible for the maintenance and integrity of the Charity and financial information included on the Charity’s website. Legislation in the United Kingdom governing the preparation and dissemination of accounts may differ from legislation in other jurisdictions. Approved by the Trustees on 25 June 2019 and signed on their behalf by: Luan Grugeon Chair of Trustees Grampian Health Board Endowment Fund (Operating as NHS Grampian Endowment Funds)


Independent Auditor’s Report to the Trustees of Grampian Health Board Endowment Fund (Operating as NHS Grampian Endowment Funds) for the Year Ended 31 March 2019

24

Opinion We have audited the financial statements of Grampian Health Board Endowment Fund (Operating as NHS Grampian Endowment Funds) (the Charity) for the year ended 31 March 2019 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and the notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ (United Kingdom Generally Accepted Accounting Practice). In our opinion, the financial statements:

give a true and fair view of the state of the Charity’s affairs as at 31 March 2019 and of its income and expenditure 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 and Trustee Investment (Scotland) Act 2005 and regulation 8 of the Charities Accounts (Scotland) Regulations 2006 (as amended).

Basis for opinion We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the Charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council’s Ethical Standard, and we have fulfilled our ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Conclusions relating to going concern We have nothing to report in respect of the following matters in which the ISAs (UK) require us to report to you where:

the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

the trustees have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the Charity’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.


Independent Auditor’s Report to the Trustees of Grampian Health Board Endowment Fund (Operating as NHS Grampian Endowment Funds) for the Year Ended 31 March 2019 (Continued)

25

Other information The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The Trustees are responsible for the other information. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Matters on which we are required to report by exception We have nothing to report in respect of the following matters in relation to which the Charities Accounts (Scotland) Regulations 2006 (as amended) require us to report to you if, in our opinion:

the information given in the financial statements is inconsistent in any material respect with the Trustees’ Report; or

proper accounting records have not been kept; or the financial statements are not in agreement with the accounting records;

or we have not received all the information and explanations we require for

our audit.

Responsibilities of the Trustees As explained more fully in the Trustees’ responsibilities statement set out on page 23, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the Trustees are responsible for assessing the Charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the Charity or to cease operations, or have no realistic alternative but to do so.


Independent Auditor’s Report to the Trustees of Grampian Health Board Endowment Fund (Operating as NHS Grampian Endowment Funds) for the Year Ended 31 March 2019 (Continued)

26

Auditor’s responsibilities for the audit of the financial statements We have been appointed as auditor under section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and report in accordance with the Act and relevant regulations made or having effect there under. Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report. Use of our report This report is made solely to the Charity’s trustees, as a body, in accordance with regulation 10 of the Charities Accounts (Scotland) Regulations 2006 (as amended). Our audit work has been undertaken so that we might state to the Charity’s Trustees, as a body, those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Charity and the Charity’s trustees, as a body, for our audit work, for this report, or for the opinions we have formed.

Scott-Moncrieff, Statutory Auditor Eligible to act as an auditor in terms of Section 1212 of the Companies Act 2006 Chartered Accountants 25 Bothwell Street Glasgow G2 6NL

Date:25 June 2019

27

All income and expenditure derive from continuing operations. There were no other recognised gains or losses other than listed above and the net income for the year. The notes on pages 30 to 45 form part of these financial statements.

NHS Grampian Endowment Funds Statement of Financial Activities for the year ended 31 March 2019

NoteUnrestricted

FundsRestricted

FundsEndowment

Funds TotalUnrestricted

FundsRestricted

FundsEndowment

Funds Total£000 £000 £000 £000 £000 £000 £000 £000

Income and Endowments From:Donations and Legacies

Donations 38 1,003 0 1,041 47 1,060 0 1,107 Legacies 6 462 0 468 5 2,208 0 2,213

Total Income from Donations and Legacies 44 1,465 0 1,509 52 3,268 0 3,320

Investment Income 5 1,508 0 0 1,508 1,678 0 0 1,678

Total Income and Endowments 1,552 1,465 0 3,017 1,730 3,268 0 4,998

Expenditure on:Raising Funds:

Investment Management Costs 51 129 0 180 48 128 2 178 Charitable Activities 7 1,049 1,337 38 2,424 4,411 5,478 0 9,889

Total Expenditure 1,100 1,466 38 2,604 4,459 5,606 2 10,067

Net Gains / (Losses) on Investments 10 2,734 0 0 2,734 (720) 0 0 (720)

Net Income / (Expenditure) for the year 3,186 (1) (38) 3,147 (3,449) (2,338) (2) (5,789)

Transfers between Funds (423) 472 (49) 0 (539) 539 0 0

Net Movement in Funds 2,763 471 (87) 3,147 (3,988) (1,799) (2) (5,789)

Reconcilation of FundsTotal Funds Brought Forward 16 13,527 23,218 482 37,227 17,515 25,017 484 43,016

Total Funds Carried Forward 16 16,290 23,689 395 40,374 13,527 23,218 482 37,227

2019 2018

NHS Grampian Endowment Funds Balance Sheet as at 31 March 2019

28

These financial statements of NHS Grampian Endowments Funds, registered Number SC017296, were approved by the Trustees and authorised for issue on 25 June 2019. They were signed on its behalf by Luan Grugeon Chair of Trustees, Grampian Health Board Endowment Fund (Operating as NHS Grampian Endowment Funds) The notes on pages 30 to 45 form part of these financial statements.

Note2019

Total Funds2018

Total Funds£000 £000

Fixed AssetsInvestments 10 44,247 41,528

Total Fixed Assets 44,247 41,528

Current AssetsDebtors 11 27 49 Cash at Bank and in Hand 12 2,350 5,007

Total Current Assets 2,377 5,056

Liabilities

13 (1,027) (2,685)Provisions for liabilities 14 (5,223) (6,672)

Total Net Assets 40,374 37,227

The Funds of the CharityUnrestricted Funds

General funds 16 4,156 2,535 Designated Hospital Funds 16 2,262 2,387 Revaluation Reserve 16,17 9,872 8,605

16,290 13,527

Restricted Income Funds 16,18 23,689 23,218 Endowment Funds 16 395 482

Total Charity Funds 40,374 37,227

Creditors: Amounts falling due within one year


Statement of Cash Flows for the year ended 31 March 2019

29

Note 2019 2018

£000 £000

Net income / expenditure for year as per statement of financial activities 3,147 (5,789)

Adjustments for:

(Gains) / losses on investments (2,734) 720

Dividends, interest from investments (1,508) (1,678)

Decrease / (increase) in debtors 22 8

(Decrease) / increase in creditors (1,658) 2,260

(Decrease) / Increase in Provisions for Liabilities (1,449) 1,804

Net cash used in operating activities (4,180) (2,675)

Cash flows from investing activities

Dividends and interest from investments 1,508 1,678

Proceeds from sale of investments 8,808 4,264

Purchase of investments 11 (8,622) (3,528)

Net cash provided by investing activities 1,694 2,414

Net (decrease) / increase in Cash and Cash Equivalents (2,486) (261)

Cash and Cash Equivalents at 1 April 5,959 6,220

Cash and Cash Equivalents at 31 March 12 3,473 5,959

NHS Grampian Endowment Funds Notes to the Accounts for the year ended 31 March 2019

30

1. General information

These financial statements are presented in pounds sterling (GBP) as that is the currency in which the Charity’s transactions are denominated. They comprise the financial statements of NHS Grampian Endowment Funds.

The objective of NHS Grampian Endowment Funds is to enhance healthcare and patient welfare in Grampian.

NHS Grampian Endowment Funds is an unincorporated Charity, recognised as a Charity for tax purposes by HMRC and registered with the Office of the Scottish Charity Regulator (OSCR) under Charity number SC017296. Details of the principal address can be found on page 10 of these financial statements.

2. Accounting Policies

(a) Basis of accounting The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with United Kingdom Accounting Standards, including Financial Reporting Standard 102, ‘The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland’ (“FRS 102”) (United Kingdom Generally Accepted Accounting Practice), the Statement of Recommended Practice (SORP) ‘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)’, the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006 (as amended).

NHS Grampian Endowment Funds meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost unless otherwise stated in the relevant accounting policy.

The preparation of financial statements requires the use of certain critical accounting estimates. It also requires trustees to exercise their judgement in the process of applying the accounting policies. Use of available information and application of judgement are inherent in the formation of estimates. Actual outcomes in the future could differ from such estimates. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements are disclosed in Note 3.

The principal accounting policies applied in the preparation of these financial statements are noted below. These policies have been applied consistently to all the years presented in dealing with items which are considered material in relation to the Charity’s financial statements unless otherwise stated.

(b) Going Concern The Trustees have assessed the balance sheet and likely future cash flows of the fund at the date of approving the financial statements. The key uncertainty over the next 12 months is the fluctuation in the stock market impacting on the performance of the Charity’s investments, which is discussed in the Trustees Report. The Trustees believe that the Charity is well placed to manage its business risks successfully despite the current uncertain economic outlook. The Trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. Thus, they continue to adopt the going concern basis in preparing financial statements.

(c) Income recognition

Income is recognised when the Charity has legal entitlement to the funds, after any performance conditions attached to the items of income have been met, and it is probable that the income will be received and the amount can be measured reliably.


Notes to the Accounts for the year ended 31 March 2019 (Continued)

31

2. Accounting Policies (Continued)

(d) Income from Legacies Income from legacies is credited to the Statement of Financial Activities on an accruals basis when the income can be measured and it is probable that the Charity will receive the income. Material legacies which have been notified, but not recognised as income in the Statement of Financial Activities, are disclosed in a separate note to the accounts (see Note 21).

(e) Income from Endowment Funds The income receivable from the investment of endowment funds is either restricted or unrestricted and is ring-fenced in accordance with the donor’s stated wishes.

(f) Expenditure recognition

All expenditure as discussed in paragraphs (g) to (j) below, is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. All expenditure is recognised once there is a legal or constructive obligation committing the Charity to the expenditure, it is probable that settlement will be required and the amount can be measured reliably.

(g) Irrecoverable VAT

Irrecoverable VAT is charged against the category of resources expended for which it was incurred.

(h) Allocation of Governance and Support Costs The Charity incurs staffing and other costs associated with the administration and management of the funds. All staff are employed by Grampian Health Board and the costs are recharged to the Charity. The administration costs are allocated as appropriate across the categories of charitable expenditure. The basis of allocation is explained in Note 6 to the accounts.

(i) Costs of Raising Funds

The costs of raising funds are those costs attributable to generating income for the Charity and represent investment management fees.

(j) Charitable Activities Costs of charitable activities comprise all costs incurred in the pursuit of the Charity’s objectives.

(k) Realised Gains/Losses and Unrealised Gains/Losses Unrealised gains at the Balance Sheet date are now disclosed separately in a revaluation reserve. This provides a clearer statement of the resources immediately available to fund stewards. 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 the opening market value (or purchase value if later). Unrealised gains and losses are calculated as the difference between the market value at the year end and opening market value (or purchase date if later). Realised and unrealised gains are not separated in the Statement of Financial Activities. All unrealised gains at the Balance Sheet date are now disclosed separately in the revaluation reserve. Unrealised losses are provided for in the Statement of Financial Activities as part of net gains and losses on investments.



32


(l) Pensions

As the Charity does not have any employees (see Note 4 to the Accounts), Grampian Health Board, as employer, is the accountable body in relation to the pension provision for those members of staff whose salary costs are charged to the Charity. Grampian Health Board participates in the National Health Service Superannuation Scheme, and information on this scheme is included in Grampian Health Board’s annual accounts.

(m) Taxation

On the basis that our activities fall within the charitable purposes and our funds are applied only for these purposes, no provision for corporation tax is made. This is in accordance with the Charities and Trustee Investment (Scotland) Act 2005 and section 521 to 536 of the Income tax Act 2007.

(n) Funds Structure Unrestricted Funds are held without restriction, other than that they must be used in support of the Charity’s charitable purpose either throughout the Grampian Health Board catchment area or at a particular health location. Restricted Funds are received by way of donations and legacies where their use is restricted by conditions attached to the gift by the donor. For Permanent Endowment Funds, the capital sum cannot be expended and only the income attributable to the Fund can be used for expenditure purposes.

(o) Fixed Asset Investments

Investments are stated at market value as at the Balance Sheet date. The Statement of Financial Activities includes the net gains and losses arising on disposals throughout the year. Quoted stocks and shares are included in the Balance Sheet at their value at close of business on 31 March 2019.

(p) Debtors

Short term debtors are measured at transaction price, less any impairment.

(q) Cash and cash equivalents

Cash at bank and in hand includes cash and short term highly liquid investments with a maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

(r) Creditors

Creditors are recognised where the Charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors are normally recognised at their settlement amount after allowing for any trade discounts due.



33


(s) Contingent Liabilities and Provisions

In accordance with the SORP, a contingent liability is disclosed for those grants, which do not represent liabilities, where the possible obligation, which arises from past events, will only be confirmed by a contractual obligation. Provisions are recognised for those grants where there is uncertainty as to the timing or amount of the liability. They are only recognised when there is a legal or constructive obligation at the Balance Sheet date as a result of past events, and it is probable that a transfer of economic benefit will be required to settle the obligation and the amount can be reliably estimated.

(t) Financial Instruments Financial assets and financial liabilities are recognised when the Charity becomes a party to the contractual provisions of the instrument. All financial assets and liabilities are initially measured at transaction price (including transaction costs). The Charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value. Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due. Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account. Creditors and provisions are recognised where the Charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

3. Critical Accounting Judgements and Key Sources of Estimation

In the application of the Charity’s accounting policies described above, the Trustees are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements include the recognition of legacy income and provisions for liabilities.



34

4. Related Parties and Trustees’ Remuneration During the year, payments totalling £2.782 million (2018: £3.887 million) were made to Grampian Health Board

to enable a range of research and other activities for the benefit of patients and £0.236 million (2018: £0.200 million) was received from Grampian Health Board mainly relating to income from research activities.

No members or senior staff of Grampian Health Board or parties related to them, were beneficiaries of the Charity. The Trustees of the Charity are also members of the Grampian Health Board and information on the Trustees is included in the Trustees’ Report on page 7.The Trustees received no emoluments from the Fund in 2019 or 2018. There were no expenses reimbursed to Trustees or paid on their behalf during the current and prior years.

The Charity does not have any employees. Grampian Health Board employs the equivalent of 4.10 full time members of staff (2018: 3.91) whose time is spent on the provision of support for the administration and governance of the Fund. The salary costs for these staff members are recharged to the Charity on a monthly basis.

There were no other transactions with related parties during the year, although the Charity made donations totalling £0.107 million (2018: £0.109 million) to the following bodies whose purpose is the provision of charitable support to Grampian Health Board. The total amount owed to Grampian Health Board at 31 March 2019 was £0.844 million (2018: £2.565 million).The total amount owed by Grampian Health Board at 31 March 2019 included within debtors was £0.003 million (2018: £0.001 million).

Body 2019 2018 Objective

£ £

Grampian Hospital Arts Trust 79,656 72,913 Provision of art works and related services to within Grampian Health Board.

Networks of Wellbeing 4,800 - Support specialist child training for a counsellor to offer counselling tochildren and young people in the Huntly area.

Bodysurf Scotland 4,500 - Establishment of singing, exercise and tea groups to support older, vulnerable people in Moray

Outdoor & Woodland Learning North East Group

4,000 - Innovative outdoor programme for adults who use mental health services in Deeside, Aberdeenshire

Hope Counselling 4,000 - Expand the organisation's recruitment and training of volunteer counsellers

Broch Community First Responders 4,000 - Provision of two kit bags containing a defibrillator and accessories for volunteers in the Fraserburgh area

Middlefield Community Project 2,800 - Develop a programme to encourage self-care which culminates in a community heath fair to share learning

Aberdeen Voluntary Action 2,000 - Development of a sustainable network or activities to support older people in rural communities

The Victoria Hall Trust 1,250 - Contribution to the installation of a public access defibrillator in Ellon

Aberdeen FC Community Trust - 5,000 Walking for Wellness programme to promote activity and reduce social isolation via referrals from local medical centre

GCRA - 5,000 Upgrading defibrillators for cardiac rehabilitation exercise classes

Rock Challenge - 5,000 Contribution to an event raising awareness of social issues relating to young people including smoking, drugs, alcohol and anti-social behaviour, encouraging physical activity for a healthy lifestyle.

Sub Total 107,006 87,913



35

4. Related Parties and Trustees’ Remuneration (Continued)

5. Investment Income

6. Allocation of Governance Costs and Overheads

The Charity incurs staffing and other costs associated with the administration and management of the fund as follows:

All staff are employed by Grampian Health Board and the costs are recharged to the Charity. The cost of administration and management of the Charity and governance costs are allocated across the categories of charitable activities. The basis of apportionment is pro-rata to the total direct expenditure incurred on each activity.

Body 2019 2018 Objective

£ £

Sub Total from Previous Page 107,006 87,913

Banchory Stroke Association - 5,000 Support for a three-year project to provide a week exercise programme for stroke survivors in upper Deeside

Four Pillars - 5,000 Contribution towards the Grampian Pride event being held in May 2018 to celebrate diversity and encourage good mental health for an estimated 7,000 participants.

Aberdeen Action on Disability - 4,000 Establishment of a disability hub in enlarged premises

Friends Group - 3,000 Support people in recovery from mental health issues

Culsalmond Community - 2,872 Conversion of phone box and installation of public access defibrillator

Conversation Cafe, Maud - 1,040 Continuation of project to break down barriers of mental health and to promote inclusion.

Total 107,006 108,825

2019 2018

£000 £000

Dividends and interest from UK equities and fixed interest securities 1,493 1,664

Interest on cash deposits 15 14

1,508 1,678

2019 2018

£000 £000

Staff Costs 120 121

Administration running costs 25 16

Governance costs:

Staff Costs 33 33

Auditors remuneration - audit fee 14 9

192 179



36

7. Analysis of Charitable Expenditure

Reported expenditure on grants in 2018/19 was £2.232 million (2017/18 £9.710 million). During the year however a number of planned commitments, provided for in prior years, did not materialise. The gross expenditure on grant commitments, before adjusting for the impact of reversing these prior year provisions (£1.695 million) was therefore £3.927 million. This includes payments totalling £2.782 million (2018: £3.887 million) made to Grampian Health Board during the year to enable a range of research and other activities for the benefit of patients and staff. Grants made to other charities directly supporting Grampian Health Board are detailed in Note 4 above. No grants are paid to individuals. The minus figure shown for Infrastructure Improvements is due to the planned commitments that did not materialise - referred to above – exceeding spending for the year.

All grant payments by the Charity are made in line with the charitable purpose of the Charity i.e. the enhancement of healthcare and patient welfare in Grampian. Trustees delegate responsibility for the management of individual funds to named fund stewards who may incur expenditure, subject to the required authorisation process, provided the expenditure falls within the objects of the Charity, that the grant request is supported by Grampian Health Board and that the funds are available to meet the request.

Basis of Allocation of Charitable Expenditure between Restricted and Unrestricted Funds The grant funding of £2.232 million is charged directly to the fund in which it has been agreed each individual grant will be funded from. Support costs of £0.192 million are apportioned between Restricted and Unrestricted funds using the relative movement between the opening and closing balance of each fund.

2019 2019

Grant funding Support costs Total

£000 £000 £000Patient and staff education and welfare 1,127 97 1,224 Clinical research 600 52 652 Purchase of equipment 656 56 712 Infrastructure improvements (151) (13) (164)

2,232 192 2,424

2018 2018

Grant funding Support costs Total

£000 £000 £000

Patient and staff education and welfare 693 21 714

Clinical research 1,210 24 1,234

Purchase of equipment 3,017 41 3,058

Infrastructure improvements 4,790 93 4,883

9,710 179 9,889



37

8. Analysis of Staff Costs

The staff costs relate to recharges from Grampian Health Board for 4.18 (2018: 3.91) whole time equivalent members of staff7, (2018: 7.5 average staff), whose time relates to the provision of administration, planning and strategic management of the Charity, see Note 6 above. No employees received remuneration in excess of £60,000 (2018: nil).

9. Auditor’s Remuneration

The Auditor’s remuneration was £13,945 (2018: £9,300) inclusive of VAT. The remuneration is entirely for the audit of the Charity’s annual accounts.

10. Fixed Asset Investments

Investments at market value comprised:

The Trustees consider individual investments holdings in excess of 5% of the portfolio to be material. There were no material individual investments.

2019 2018

£000 £000Salaries and wages 121 123 Social Security Costs 13 13 Pension Costs 19 18

153 154

2019 2018

£000 £000

Market value of investments at 1 April 40,576 42,032

Additions to investments at cost 8,622 3,528

Disposal of investments (8,808) (4,264)

Realised net gain on disposals 1,387 599

Unrealised net gain / (loss) on revaluation 1,347 (1,319)

Market value of investments at 31 March 43,124 40,576

Cash balance 1,123 952

Total 44,247 41,528

Historical cost of investments at 31 March 35,060 33,689

2019 2018

£000 £000

Cash and cash equivalents 1,123 952

Listed investments

Fixed interest securities 8,122 7,787

Equities 35,002 32,789

44,247 41,528



38

11. Debtors

12. Cash and Cash Equivalents

13. Creditors Falling Due Within One Year

£0.845 million was due to Grampian Health Board at the balance sheet date (2018: £2.566 million) 14. Provisions for Liabilities

The provisions for liabilities related to the funding of posts within Grampian Health Board and committed expenditure resulting from a legal or constructive obligation. At 31 March the Charity had obligations payable as follows:

2019 2018

£000 £000

Accrued Income 7 31

Other debtors 20 18

27 49

2019 2018

£000 £000

Cash at bank and in hand 2,350 5,007

Cash held for investment (note 10) 1,123 952

3,473 5,959

2019 2018

£000 £000

Accruals 182 120

Public Sector 845 2,565

1,027 2,685

2019 2018

£000 £000

Obligations outstanding at 1 April 6,672 4,868

New obligations arising in the year 3,819 5,531

Obligations paid during the year (3,573) (3,018)

Obligations reversed unutilised (1,695) (709)

Obligations outstanding at 31 March 5,223 6,672

2019 2018

£000 £000

Within 1 year 4,941 6,054

Falling due after 1 year 282 618

5,223 6,672



39

15 Financial Instruments

Financial assets measured at amortised cost comprise accrued income and other debtors. Financial liabilities measured at amortised cost comprise provisions for liabilities, accruals and amounts due to public sector bodies.

16. Analysis of Charitable Funds

Restricted funds account for a proportion of fixed asset investments and as a result the Board of Trustees has transferred £0.423 million from general funds to restricted funds to allocate a proportion of the investment income received in the year. The Designated Hospital Funds are a part of the Unrestricted Funds that have been designated by the Board of Trustees to be spent on any purpose at specific hospitals. £0.049 million of prior years’ investment income allocated to one permanent endowment has been re-allocated to a Restricted Fund following advice that the fund can be merged as it has a similar purpose. The charity has received legal advice that funds with a similar purpose can be merged.

2019 2018

£000 £000

Cash and cash equivalents 3,473 5,959

Financial assets measured at amortised cost 27 49

Financial assets measured at fair value 43,124 41,528

46,624 47,536

Financial liabilities measured at amortised cost 6,250 9,357

Balance as at 1 April

2018Income Expenditure

Investment Gains & Losses

TransfersBalance as at 31 March

2019

£000 £000 £000 £000 £000 £000

Analysis of Fund Movements:

Unrestricted Funds

General funds 2,535 1,500 (923) 1,467 (423) 4,156

Designated Hospital Funds 2,387 52 (177) 0 0 2,262

Revaluation Reserves 8,605 0 0 1,267 0 9,872

13,527 1,552 (1,100) 2,734 (423) 16,290

Restricted Funds 23,218 1,465 (1,466) 0 472 23,689

Permanent Endowments 482 0 (38) 0 (49) 395

Total 37,227 3,017 (2,604) 2,734 0 40,374


2017Income Expenditure

Investment Gains & Losses

TransfersBalance as at 31 March

2018

£000 £000 £000 £000 £000 £000

Analysis of Fund Movements:

Unrestricted Funds

General funds 5,351 1,730 (3,918) 7 (635) 2,535

Designated Hospital Funds 2,832 0 (541) 0 96 2,387

Revaluation Reserves 9,332 0 0 (727) 0 8,605

17,515 1,730 (4,459) (720) (539) 13,527

Restricted Funds 25,017 3,268 (5,606) 0 539 23,218

Permanent Endowments 484 0 (2) 0 0 482

Total 43,016 4,998 (10,067) (720) 0 37,227



40

17. Revaluation Reserve

The balance on the revaluation reserve reflects any unrealised gains on investments calculated as any positive variance between the market value and the initial purchase value of investments in equities and bonds held at the Balance Sheet date.

18. Restricted Funds

The following analysis highlights all restricted funds with a balance greater than £0.075 million during the year. These funds form part of the total restricted funds of £23.689 million as at 31 March 2019. The previous year’s figures are shown in Note 18 on Page 32 of the 2017/18 accounts which can be viewed on the following link: https://www.nhsgcharities.com/about-us/

Name of Fund Purpose of Fund


2018 Income Expenditure

Transfers Between

Funds

Balance as at 31

March 2019

£000 £000 £000 £000 £000

A & E Nurses Fund Staff development 32 0 (1) 49 80 Aberdeen Diabetic Clinic Travl Fund

For research and meetings expenses 100 2 (2) 2 102

Aberdeen Geriatric Res Fund

Clinical and services research in geriatric medicine 107 9 (18) 14 112

Aberdeen Lung Cancer Group Fund

Benefit of lung cancer department 265 16 (60) 5 226

Aboyne Hospital Patients Fund

For the benefit of patients at Aboyne Hospital 9 0 112 2 123

Annie Tweedie Executry For the benefit of long term and elderly patients 22 0 119 2 143

ARI General Purposes Fund

General purposes for the benefit of patients at Aberdeen Royal Infirmary 145 129 (36) 3 241

ARI Oncology Research Fund

Research, meeting expenses and equipment 217 46 (3) 4 264

ARI Patients Fund For the benefit of patients at Aberdeen Royal Infirmary 96 0 (1) 2 97

ARI Small Donations Fund Individual ARI ward funds for the benefit of patients 134 13 (8) 2 141

ARI Ward 112 Haematology Pat's

For the benefit of Ward 112, Aberdeen Royal Infirmary 413 4 (65) 7 359

ARI Ward 114 Patients Fund

For the benefit of Ward 114, Aberdeen Royal Infirmary 266 4 (12) 4 262

ARI Ward 310 Patients Fund

For the benefit of patients of Ward 310 79 0 (1) 1 79

ARI Ward 404/405 Fund For the benefit of patient at Ward 404/405, Aberdeen Royal Infirmary 109 4 (1) 2 114

Banchory Group Practice For benefit of patients attending Banchory Group Practice 0 100 (1) 1 100

Breast Centre Dev & Refurb Fund

For the development and refurbishment of the Breast Centre 109 0 (1) 2 110

Breast Research Fund For Breast Cancer research 21 1 219 7 248

Sub Total 2,124 328 240 109 2,801



41

18. Restricted Funds (Continued)




Transfers Between

Funds

Balance as at 31

March 2019

£000 £000 £000 £000 £000

Sub Total from Previous Page 2,124 328 240 109 2,801 Buchan Renal Unit Fund Supporting Buchan renal

Unit 66 18 (3) 1 82 Cancer Res For Children Fund

Cancer research for children 386 1 (19) 6 374

Cancer Research Fund Cancer research 430 3 (60) 8 381 Cardiac Surgical Fund Research and

Development of Cardiac Surgery 223 3 (28) 4 202

Chalmers Hospital Gen Purp Fund

For the benefit of patients at Chalmers Hospital 109 0 (3) 2 108

Clin Biochem Diagnstic Res Fund

Research by the Clinical Biochemistry Department 129 0 (8) 2 123

Clin Biochem Lab Discret Fund

General purposes for the benefit of the Clinical Biochemistry Laboratory 91 18 (9) 2 102

Clinical Microbiology Fund General purposes for the benefit of the Clinical Microbiology Department 130 17 (1) 2 148

Colorectal Study Fund For the purposes of colorectal study 250 22 (5) 5 272

Coronary Care Research Fund

Research for Coronary Care 198 0 (3) 5 200

Coronary Care Unit Fund For the benefit of the Coronary Care Unit 867 8 29 (272) 632

Cystic Fibrosis Equip/Trav Fund

For the benefit of patients of the Cystic Fibrosis Service 123 9 (14) 2 120

Cytology Endowment Fund General purposes for the benefit of the Cytology Department 172 1 (25) 3 151

D Cameron Executry (Cancer)

Cancer research526 0 (5) 8 529

D Cameron Executry (Heart)

Research into heart disease 668 0 (50) 12 630

David Muiry Executry (Woodend)

Research at Woodend Hospital 139 0 (2) 3 140

Depart Of Clinical Oncology Fund

For the benefit of the Oncology Department 1 86 7 1 95

Depart Of Virology R & D Fund

For research and development work 124 2 (4) 2 124

Dermatology Research Fund

Dermatology research and educational travel 121 1 (1) 2 123

Diabetes Centre General Fund

For the benefit of the Diabetes Centre 628 3 (12) 27 646

Diabetes Clinical Trials Fund

For Diabetes research67 1 (2) 36 102

Dr Grays - RVS Fund For the benefit of relatives and carers and elderly patients 129 0 (11) 2 120

Sub Total 7,701 521 11 (28) 8,205



42





Transfers Between

Funds

Balance as at 31

March 2019

£000 £000 £000 £000 £000

Sub Total from Previous Page 7,701 521 11 (28) 8,205 Dr Grays-C K Williamson Executry

For the benefit of Dr Gray's Hospital 76 0 0 1 77

Elizabeth A Harper Executry

For treatment of chronic kidney failure and diabetic related disease 85 0 (1) 1 85

Evelyn Sim Executry For the purchase of equipment in the heart and kidney units at ARI 100 0 (1) 2 101

Fetal & Perinatal Fund For the benefit of Foetal and Perinatal at Aberdeen Maternity Hospital

457 0 (9) 8 456 Foresterhill Staff Garden Create and maintain Staff

Garden at Foresterhill 1 24 71 1 97 Gastro General Purposes Fund

General purposes for the benefit of patients of the Gastroenterology service 201 4 (1) (83) 121

Gordon Renal Dialysis Unit Fund

Solely towards costs of provision of the Unit 109 0 (21) 2 90

Grampian RVS Elderly Servs Fund

For the benefit of relatives and carers and elderly patients 88 0 (23) 2 67

Gynae/Oncology Research Fund

For gynaecological oncology research 74 0 32 2 108

Haematology O/P Clinic Fund

For the benefit of Haematology Outpatients Clinic 111 12 (7) 2 118

Huntingtons Disease Res Fund

Research into Huntington's Disease 192 27 (15) 3 207

Insch General Purposes Fund

For the benefit of patients at Insch War Memorial Hospital 93 0 (5) 2 90

Intensive Care Unit Fund For the benefit of the Intensive Care Unit at Aberdeen Royal Infirmary 81 13 (2) 3 95

Inverurie Renal Dialysis Unit

General purposes to benefit patients and staff of the Unit 178 3 2 3 186

Jubilee General Purposes Fund

For the benefit of patients at the Jubilee Hospital, Huntly 107 0 (3) 2 106

Leukaemia Research For Children

Leukaemia research for children 347 0 (40) 6 313

Leukaemia Research Fund Leukaemia research 168 42 (2) 3 211

Lymphoma Research Fund Research for Lymphoma263 0 (3) 4 264

Medical Renal Unit Ward Fund

For the benefit of the Renal Unit 88 11 (6) 1 94

Sub Total 10,520 657 (23) (63) 11,091



43





Transfers Between

Funds

Balance as at 31

March 2019

£000 £000 £000 £000 £000

Sub Total from Previous Page 10,520 657 (23) (63) 11,091 Miss Alexina E Shand Fund

For purposes at Stephen Hospital, Dufftown 340 0 (3) 6 343

Miss Elizabeth J Walker Fund

For the benefit of patients and staff in Skene Ward, Royal Cornhill Hospital 232 0 (2) 4 234

Miss I M Deans Exec (Heart)

Research into heart disease at Aberdeen Royal Infirmary 174 2 (2) 3 177

Miss I M Deans Exec (Thoracic)

Research into thoracic disease at Aberdeen Royal Infirmary 152 0 (25) 2 129

Moray Palliatiative Care Fund

For the benefit of palliative care patients in Moray

125 7 (1) 2 133 Mr Alexander Sim Executry

Improving care and comfort of patients at ARI 96 0 (45) 2 53

MRI Education Fund Woodend

For education and training80 0 (1) 1 80

Mrs Winifred C Simpson Executry

For research into mental illness 78 0 (1) 1 78

Mrs. K.M.Munros Fund Maintenance, Health & Welfare of Children 327 0 (21) 5 311

Neurological Research Fund

Research into neurological conditions 123 10 (2) 3 134

Neurology Department Fund

General purposes for the benefit of patients 96 15 (1) 2 112

Neurosurgical Unit Fund For the benefit of the Neurosurgical Unit 60 29 (4) 2 87

Oaks Centre Day Care Fund

For the benefit of the Oaks Day Care Centre 661 54 (39) 12 688

Oncology Discretionary Fund

For the benefit of the Department of Oncology, Aberdeen Royal Infirmary 532 8 (147) 9 402

Ophthalmic Research Fund

General ophthalmology research purposes 136 1 (1) 2 138

Ophthalmology Research Fund

General ophthalmology research purposes 91 0 (1) 2 92

Organ Donation Fund General purposes for the benefit of the Organ Donation Service 88 25 (25) 2 90

Orthopaedic Research Fund

Orthopaedic research7 0 (2) 70 75

Parkinson Disease Research Fund

Research into Parkinson's Disease 125 0 (25) 3 103

Pathology Depart Discret Fund

General purposes for the benefit of the Pathology Department 91 0 (4) 1 88

Peter Gibb Bequest For the benefit of the Department of Cardiology 172 0 (2) 3 173

Sub Total 14,306 808 (377) 74 14,811



44


19. Reconciliation of Funds by Net Assets




Transfers Between

Funds

Balance as at 31

March 2019

£000 £000 £000 £000 £000

Sub Total from Previous Page 14,306 808 (377) 74 14,811 Peterhead Community Hospital General Purpose Fund

General purposes at Peterhead Community Hospital 327 0 94 6 427

Royal Aberdeen Childrens Hospital General Purposes Fund

For the benefit of patients at the Childrens Hospital

70 11 (17) 38 102 Renal Dialysis Machines Fund

For the purchase of renal dialysis machines 88 96 (181) 1 4

Rheumatology General Fund

General purposes for the benefit of patients of the Rheumatology Service 116 2 (6) 58 170

Roxburghe House General Purposes Fund

General purposes at Roxburghe House 274 1 (127) 4 152

Royal Cornhill General Purpose Fund

General purposes at Royal Cornhill Hospital 739 11 (157) 13 606

Special Nursery Medical Fund

For the benefit of patients of the Neonatal Unit and relatives 117 0 (11) 2 108

Sudden Infant Death Fund For the benefit of parents/relatives of infants who have died suddenly

80 0 (1) 1 80 Turner General Purposes Fund

General purposes for the benefit of patients at Turner Memorial Hospital 143 0 (77) 30 96

Turriff Hospital General Purposes Fund

For the benefit of patients at Turriff Hospital 90 2 (7) 1 86

16,350 931 (867) 228 16,642

Other Restricted Funds 6,868 534 (599) 244 7,047

23,218 1,465 (1,466) 472 23,689

Unrestricted General

Funds

Designated Hospital

Funds

Revaluation Reserve

Restricted Funds

Endowment Funds

2019 Total

£000 £000 £000 £000 £000 £000

Fixed asset investments 4,684 2,549 9,872 26,697 445 44,247

Current assets 2,335 42 0 0 0 2,377

Current liabilities (779) 0 0 (230) (18) (1,027)

Provisions for liabilities (2,084) (329) 0 (2,778) (32) (5,223)

4,156 2,262 9,872 23,689 395 40,374



45

19. Reconciliation of Funds by Net Assets (continued)

20. Consolidation The results of NHS Grampian Endowment Funds have been consolidated into the accounts of Grampian Health

Board on the basis that all Trustees are also members of Grampian Health Board and therefore effectively operate under common control for accounting purposes. The consolidated accounts are publicly available after they have been laid before parliament, in the autumn of each year and can be accessed on the Grampian Health Board website at www.nhsgrampian.org and click on ‘About us’ followed by ‘Annual Accounts – Managing our Finances’.

21. Material Legacies

Legacy income is recognised when the charity has legal entitlement to the funds, it is probable the income will be received and the amount can be measured reliably. At the date of approval of the accounts, the Charity has received notification of four legacies and the residue of eight estates of which the Executors are unable to provide a value and the residue of 3 estates which consist of properties with Life Tenants in occupancy, the legacy will not become legally available to the Charity until the life tenancy ends.

22. Contingent Liabilities

The Charity has no contingent assets or liabilities.

Unrestricted General

Funds

Designated Hospital

Funds

Revaluation Reserve

Restricted Funds

Endowment Funds

2018 Total

£000 £000 £000 £000 £000 £000

Fixed asset investments 5,164 2,878 8,605 24,399 482 41,528

Current assets 3,380 0 0 1,676 0 5,056

Current liabilities (2,685) 0 0 0 0 (2,685)

Provisions for liabilities (3,324) (491) 0 (2,857) 0 (6,672)

2,535 2,387 8,605 23,218 482 37,227

Endowments Draft Accounts 201819 to AGM with Photos and cover€¦ · 1+6 *udpsldq (qgrzphqw )xqgv...

Documents

Transcript of Endowments Draft Accounts 201819 to AGM with Photos and cover€¦ · 1+6 *udpsldq (qgrzphqw )xqgv...