Annual Report 2015 by Barts Charity

Trusteesâ&#x20AC;&#x2122; Annual Report 2015

Contents Barts Charity: A brief introduction

Chairman’s and Chief Executive’s report

Grants Grants review

Transforming care of diabetic kidney disease

Film show: A multilingual film promoting self-care of children with gastroenteritis

Through a Glass, clearly: Pioneering use of new technology in medical education

Trauma: Prevention, treatment and rehabilitation

Echoes of the heart: A new echocardiography machine for critical care

Predicting pneumonia: Identifying critical care patients at risk of severe infections

Unmasking hidden viral infections: Innovative testing for HIV and hepatitis viruses

Having faith: Creating a more supportive environment for people with HIV

Getting the message to the masses: Using a converted bus to engage communities

ACP: A neglected childhood tumour

Controlling high blood pressure: Exploring new surgical treatments for hypertension

A helping hand: Psychological support for people with inherited cancers

Fundraising Fundraising review

Banking on success: Transforming the appearance of Barts Children’s Hospital

Zapping cancer: ‘PlasmaJet’ equipment for treatment of ovarian cancer

Governance Governance review

Trustees and advisers

Finance review and strategic report Financial review

Professional advisers

Financial statements Covering 8 months to 31 March 2015 Statement of Trustees’ responsibilities

Auditor’s report

Financial statements and notes to the accounts

Supplementary financial statements Covering year to 31 March 2015

Trustees’ Annual Report 2014/15

Background and basis of preparation

Auditor’s report

Supplementary statements and notes

www.bartscharity.org.uk

Our vision

To be a leading charity promoting extraordinary healthcare.

Our mission

To raise, invest and grant funds for innovation and improvement in patient care, medical research and education.

Our beneficiaries

We support projects that will enhance the health and well-being of our beneficiaries, namely the people receiving NHS medical care, attention or treatment. We work primarily (but not exclusively) through Barts Health NHS Trust and Barts and The London School of Medicine and Dentistry, which is part of Queen Mary, University of London.

Trusteesâ&#x20AC;&#x2122; Annual Report 2014/15

Our grants strategy We award grants to support innovative healthcare and medical research to promote the health and well-being of the many communities served by Barts Health. Our strategy is to support the best people and the best projects, building on excellence. In this way, our funding can make a real difference to healthcare, now and in the future. We liaise closely with Barts Health and the Medical School to ensure that grants are awarded in areas of strategic importance. We obtain independent opinions on grant applications, to ensure that projects are worthwhile and offer good value for money. We also track projects to ensure they achieve their milestones and main aims in order to demonstrate impact.

Our financial strategy Barts Charity plans to exist in perpetuity, a principle that guides our investment and grant-giving strategies. Our investmentsâ&#x20AC;¨are managed with a long-term perspective, generating income to support an annual grant-giving programme while also growing our asset base. Our investments are widely diversified by asset type, geographically and by fund manager.

www.bartscharity.org.uk

Our recent impact includes: Funding the creation of the new Barts Diabetic Kidney Centre

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4 3 2

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Its associated medical school, Barts and The London School of Medicine and Dentistry, is internationally recognised for its medical research. It is regularly ranked in the top five medical schools nationally for the quality of its research.

Newham University Hospital

Whipps Cross University Hospital

11/

Mile End Hospital

The Royal London Hospital

St Bartholomew’s Hospital (Barts, founded in 1123)

£m

Our impact

Barts Health is the largest NHS Trust in the UK, treating more than a million patients a year. It provides a network of health facilities across North and East London through its five hospitals:

Figure 1: Charitable expenditure.

Our principal focus is on securing ‘major gifts’ (between £10,000 and £1m) from individuals, corporate bodies and charitable trusts. We have established a ‘Barts Ambassador’ programme to underpin our major donor strategy. We also rely on the exceptional generosity of many individual fundraisers and donations from patients and their families, and are looking to grow our income from in memoriam donations and legacies. Because endowment income covers all our administrative costs, we can guarantee that 100% of every donation supports a donor’s chosen cause.

Barts Health: Old and new

Our fundraising strategy

Purchase of two MRI scanners for Barts Heart Centre Pump-priming excellence in trauma care via the Centre for Trauma Sciences

Funding of internationally acclaimed in-hospital programmes to provide HIV screening

Trustees’ Annual Report 2014/15

www.bartscharity.org.uk

Chairman’s and Chief Executive’s report This has been a momentous year, as we became the first NHS charity to achieve full independence. In 2014, new rules were introduced enabling NHS charities to become independent of the Department of Health – removing dual oversight whereby such charities are regulated by both the Department of Health and the Charity Commission. We had been anticipating this move, and recent changes to our governance arrangements have been based on the long-term goal of achieving independence. Hence we were able to move swiftly once the rule changes were formally announced, and acquired our independence in July 2014. The change in status has a number of important implications. One practical outcome is that it will reduce our administrative burden, as we will be reporting only to the Charity Commission. More importantly, however, independence provides us with more freedom to act strategically on behalf of our beneficiaries – the populations served by Barts Health NHS Trust – and to fulfil the wishes of our donors. Indeed, with our finances in rude health, we are looking to award substantial sums to ventures aiming to deliver significant benefits to patients, as well as maintaining our annual grant-giving programme. This year, we released a third tranche of funding to our major trauma initiative, bringing our total funding to £3m, and we committed £3.4m to establish a world-leading centre focusing on diabetic kidney disease. Furthermore, we are in

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advanced discussions regarding further major awards to strategically important areas – exciting projects we hope to report on in future years. Our independence gives us scope to be even more imaginative in our grant-giving. We are, for example, exploring the potential for international collaborations to enable Barts clinician scientists to forge closer ties with world-leading centres outside the UK. This is, therefore, the beginning of an exciting new era for Barts Charity. We are pleased that Barts Health NHS Trust has contributed so constructively to all governance discussions, and we look forward to maintaining a close working relationship with the Trust. Alongside these strategically important moves, we have also been modernising and integrating our business systems. Our integration project will provide a common IT infrastructure for our grant-giving, fundraising and financial operations, ensuring that we continue to be an efficient, professionally run organisation. We would like to pay tribute to Nicholas Woolf, who is stepping down as Deputy Chairman. Nicholas has been a key figure in Barts Charity since 2002 and especially in recent years as we have prepared for our new independent status. His calmness and good judgement, particularly in financial matters, have been enormously helpful and greatly appreciated.

Michael Smith Chairman

Andrew Douglas Chief Executive

www.bartscharity.org.uk

Grants

We support projects that will enhance the health and well-being of our beneficiaries, the individuals and communities served by Barts Health. Barts Charity’s grants programme supports projects that enhance high standards of care, and funds research of major importance to health. The aim is to ensure that St Bartholomew’s Hospital, The Royal London Hospital and the other institutions under the Barts Health umbrella maintain their position at the forefront of innovative healthcare delivery. Funding is aligned with areas of known strength, including cardiovascular medicine, paediatrics and trauma. Through our annual grants programme, we provide two forms of support: small project grants up to £20,000 and project grants from £20,000 to £500,000. During 2014/15, 36 grants were awarded – 20 small project grants and 16 project grants – totalling £7.4m. In addition, exceptional grants funding of some

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£4.4m was committed in 2014/15. Our long-term aim is to increase the number of large awards we make that are genuinely transformational. A good example has been our major support to establish a centre for translational trauma research, which received its third £1m tranche of funding this year (see page 8). We committed £3.4m to create what will be a world-leading site for research into, and care of, diabetic kidney disease (see page 6). We are currently exploring a range of exciting possibilities, and look forward to announcing other major awards in the near future. Other awards made this year have also focused on trauma and critical care, including new echocardiography equipment to enhance patient care and research that may help to identify people at risk of severe

infections in critical care (see page 9). In cancer, we are supporting research on a rare but devastating condition affecting children (see page 12), as well as an innovative pilot study that may ultimately enable clinicians to provide psychological as well as clinical support to people genetically destined to develop cancers in adulthood (see page 13). We have continued to support innovative community outreach projects, particularly focused on HIV, hepatitis viruses and sexual health (see page 10). We have also provided funding to advance highly innovative approaches to medical teaching, through new video-streaming and virtual reality technologies (see page 7) – an area where the Medical School is leading the way nationally and internationally.

www.bartscharity.org.uk

Grants

Left: Dialysis in Barts Health Renal Unit. Below left: A patient undergoing dialysis in the Renal Unit. Right: A still from the patient information film on gastroenteritis care. Far right: Mr Shafi Ahmed using Google Glass technology during surgery.

Transforming care of diabetic kidney disease A major new grant from Barts Charity will help to create one of Europe’s leading sites for treatment and research into diabetic kidney disease.

Diabetes has a major impact on the health and lives of East Londoners. Nearly a third of people living with diabetes will develop diabetic kidney disease – a serious complication that can lead to kidney failure and a need for dialysis or kidney transplantation. Barts Health’s Renal Unit, one of the UK’s largest renal services, provides specialist care for an ethnically diverse population of almost 2 million people across North-East London. With £3.4m

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funding from Barts Charity, Professor Magdi Yaqoob, Dr Neil Ashman and colleagues aim to build on this platform to transform the delivery of care, to generate a better understanding of diabetic kidney disease, and to develop new and improved treatments. The programme’s research will aim to identify possible new treatments, which can then be tested in large clinical trials. The uniquely diverse ethnic mix of East London offers the opportunity to understand mechanisms of disease and test treatments relevant to people with diabetes all over the world. A further important aim is to develop a more proactive approach to patient management. The team is forging stronger links with GPs, developing automated systems that spot deteriorating kidney function at an early stage, enabling patients to be treated

promptly to prevent complications. Over time, this network will be used to identify 35,000 people at risk of kidney disease who can be followed up continuously and enrolled in research – by far the largest such cohort in Europe. A related aim is to provide a more patient-centred approach to treatment. People with diabetes and diabetic kidney disease live at risk of several other complications, including cardiovascular disease, loss of sight and foot problems. Patients can end up seeing multiple specialists, and their care is not always as joined up as it might be. The kidney team is developing a single multidisciplinary clinic that will provide more integrated care, bringing specialists to the patient. Barts Diabetic Kidney Centre is being supported by a £3,369,000 grant from Barts Charity.

www.bartscharity.org.uk

Grants

Film show A short film in more than a dozen languages is helping families care for children with gastroenteritis at home. Gastroenteritis is a common cause of visits to paediatric accident and emergency (A&E). In most cases, however, the condition is not serious and can be managed at home. To enable consultants to concentrate on serious cases, children with gastroenteritis are now rapidly assessed by nurses in Barts Health’s paediatric A&E department. In the most straightforward cases, families are given advice on how to care for their child at home. To support this new approach, Dr Matthew Clark and Dr Alexandra Pledge have worked with Mile End Films to develop a short film on care, highlighting the ‘red flag’ warning signs that indicate a return to A&E is warranted. The film, available in 14 different languages, is shown to parents in the hospital and can be viewed on Barts Health’s YouTube channel. As well as freeing up paediatric specialists, the new approach is reducing waiting times for patients. In addition, experience to date suggests it is also encouraging parents to care for children at home when they next experience gastroenteritis. Production of the multilingual patient information videos was funded by a £7,581 grant from Barts Charity.

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Through a Glass, clearly

A pioneer in the use of Google Glass technology in medical education is now experimenting with the wonders of virtual reality.

In May 2014, Mr Shafi Ahmed captured newspaper headlines around the world when he used Google Glass to live-stream a surgical procedure to some 13,000 people in 115 countries. As well as a high-definition camera, the Google Glass headset has an integrated screen, enabling Mr Ahmed to receive and respond to questions during procedures. With funding from Barts Charity, Mr Ahmed has been building on this pioneering first, incorporating Google Glass into undergraduate and postgraduate medical education, and extending the range of applications from surgery to other areas, such as development of patient interaction skills. He has also begun exploring the potential of other technologies to enhance the learning experience, such as interactive 3D videos

and virtual reality. Using special headsets, students will have a truly immersive experience of surgery – even in real time, if the surgeon is using Google Glass. Streamed procedures can be accessed at http://virtualmedics. org and the first-ever 3D surgical video was posted on YouTube in March 2015 (https://www.youtube. com/watch?v=VAUbacNs4MQ). Mr Ahmed is now using the experience gained in his Charity-funded project to develop longer-term plans, so use of such innovative technologies can be expanded nationally and internationally. Mr Ahmed’s use of Google Glass and virtual reality to enhance medical

teaching and training has been

supported by a £20,000 grant from Barts Charity.

www.bartscharity.org.uk

Left: Care for critically ill patients. Right: Dr Parjam Zolfaghari with the new portable echocardiography machine.

Grants

Far right: Dr Michael O’Dwyer.

Trauma: Prevention, treatment and rehabilitation The Barts Centre for Trauma Sciences is achieving impact nationally and internationally. In 2012, Barts Charity provided substantial funding to establish the Barts Centre for Trauma Sciences, led by Professor Karim Brohi. Following another highly successful year, in 2014 Barts Charity approved a third year’s funding of £1m, bringing its total grant funding in the Centre to £3m. The Centre provides a platform enabling clinicians and researchers to work together on key themes in trauma, particularly bleeding, organ failure and brain injury. Its clinical trials include highly promising studies of fibrinogen supplements to reduce bleeding – a unique study that also recruited military patients from Camp Bastion in Afghanistan. The platform has also enabled the Centre to secure other major funding, including €5.9m from the European Union for an international study on bleeding and its prevention, £760,000 from the Wellcome Trust for novel studies of an antimalarial drug

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that may be able to protect against organ failure, and £400,000 industry funding to test a lipid emulsion in neurotrauma. More fundamental studies have begun to examine the body’s response to trauma. The Centre is able to obtain samples early after trauma, supporting studies that may shed light on why certain patients are particularly vulnerable to impaired clotting responses, organ failure, or infection during recovery. The Centre has also carried out a landmark evaluation of the newly reorganised London-wide trauma services, showing that the changes introduced after the 2007 National Confidential Enquiry into Patient Outcomes and Death have improved quality of care and reduced mortality. These findings are likely to have a significant influence on the development of UK trauma services.

In addition, the Centre has been tackling prevention and awareness, drawing attention to the dangers of head injury during rugby matches. Preventive projects have focused on areas such as cycling-related injuries and knife crime. A further strand of work is addressing the neglected area of long-term support. The Centre has developed a website, AfterTrauma, which provides guidance and support to trauma survivors and their families, and enables them to form their own support networks. The year also saw the Centre strengthen its international networking. It hosted a landmark international meeting which attracted leading figures in trauma care and research from around the world. The meeting identified key issues facing the trauma field and priorities that could be addressed through international collaboration. www.bartscharity.org.uk

Grants

Echoes of the heart

Thanks to a new portable echocardiography machine, critical care specialists can keep a closer eye on heart function in seriously ill patients. Echocardiography provides valuable information on the structure and function of the heart. Maintaining heart function is essential in critical care and monitoring heart function can provide important pointers to guide treatment. Traditionally, echocardiography is the territory of specialist cardiologists but, explains critical care consultant Dr Parjam Zolfaghari, critical care units are increasingly integrating it into their routine practice. With less need for a cardiologist to be present, devices can be used more flexibly. Although the critical care unit at Barts Health had a portable echocardiography machine, it was becoming outdated. The new model, funded through a £20,000 grant from Barts Charity, provides greatly improved

image quality, is easier to use, and is the model used in standard training modules. Unlike its predecessor, it is also compatible with the hospital’s digital image sharing system, so results can be sent rapidly to cardiologists when more specialist advice is required. Dr Zolfaghari and cardiologist colleagues have developed a training programme for critical care unit consultants, who ultimately achieve certification from the Intensive Care Society. With staff now trained, the new machine is in daily use to assess new patients and monitor those recovering in the unit. The portable echocardiography machine was funded by a £20,000 grant from Barts Charity.

Predicting pneumonia

New research may help to identify which critically ill patients are at greatest risk of pneumonia. Great strides have been made in keeping severely injured patients alive. However, even when stabilised, trauma patients face many challenges – including an increased risk of infections such as pneumonia, which affects up to 40% of patients requiring critical care support. With £368,000 funding from Barts Charity, critical care consultant Dr Michael O’Dwyer is aiming to discover why some patients are particularly vulnerable to infection. Trauma patients typically succumb to relatively innocuous bacteria that most of us deal with easily, suggesting that their immune system function is impaired. Using samples collected from patients soon after injury, Dr O’Dwyer is analysing the activity of genes linked to immune system function immediately after trauma, focusing on characteristic DNA modifications that control whether genes are switched on or off. By following patients during recovery, he hopes to identify modifications that are associated with increased susceptibility to infection. These ‘signatures’ could then provide a way to identify patients at particular risk of pneumonia or other infections, who could be given immune-boosting medication or other support to help them fight off infections.

Dr O’Dwyer’s project has been

funded by a £368,029 grant from Barts Charity.

Trustees’ Annual Report 2014/15

www.bartscharity.org.uk

Grants

Unmasking hidden viral infections

By piggybacking blood testing in Accident and Emergency (A&E) departments, ‘Going Viral’ has identified ‘hidden’ HIV and hepatitis virus infections. Infections with HIV or hepatitis B or C viruses are potentially life-threatening but they are now treatable, especially if caught early. Unfortunately, many people with the viruses are unaware they are infected. As well as the threat to their own health, they can also unwittingly pass a virus on to others. Population-wide screening is impractical, so identifying these hidden infections is challenging. In ‘Going Viral’, consultant Dr Chloe Orkin adopted a novel approach, teaming up with ten A&E departments across the UK, including five in London, to offer diagnostic tests to any patient having a blood sample taken. Dr Orkin piloted this approach with great success in the ‘Test me East’ project, funded by Barts Charity, which focused just on HIV. ‘Going Viral’ extended testing to include hepatitis B and C viruses. During one week in October 2014, 2,148 tests were performed, identifying 71 people with HIV and hepatitis C infections – all potentially life-changing discoveries. The project generated exceptional levels of publicity, with active support from public figures such as actor Richard Wilson and DJ Tim Westwood (and endorsement by numerous professional bodies). As well as encouraging people to participate, such visible shows of support may help to ‘normalise’ testing for the viruses.

Following up these successful projects, Dr Orkin has been working on a longer-term initiative with local commissioners and antiviral drug manufacturers, exploring the possibility of offering testing routinely. The project has had other important implications, providing data on hepatitis virus infection rates, which appear to be considerably higher than previously thought. The work has also attracted global interest from groups considering similar projects with their local populations. In further recognition of her endeavours, Dr Orkin featured in the 2014 Rainbow List, produced by the Independent to recognise those making major contributions to the lives of lesbian, bisexual, gay and transgender people. ‘Going Viral’ was funded by an £85,000 grant from

Barts Charity.

Caption From top: Actor Richard Wilson; Dr Chloe Orkin being interviewed about ‘Going Viral’; Dr Orkin with Tim Westwood; a display at the Science Museum featuring a ‘Going Viral’ T-shirt.

Trustees’ Annual Report 2014/15

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Now that I have the knowledge and information about HIV and people who suffer from it, I feel like it’s my duty to spread the word and encourage people in the Muslim community to wake up to the realities of our society. And to encourage more Muslims to get tested and, if HIV positive, get treated for the disease.” Muslim Faith Leader

Grants It was an excellent course. Before the course my knowledge of HIV was limited but I left deeply knowledgeable. I left aware that HIV can be managed and the need for support and treatment for those diagnosed with it. Support and treatment can prolong the life of a person. I gained so much awareness that will be of benefit to my community.” Christian Faith Leader

Having faith

Work with faith leaders across London is creating a more supportive environment for people with HIV. More than half of all HIV diagnoses in London are in black and minority ethnic populations and late diagnosis is alarmingly common. To reach such groups, the ‘Testing Faith’ project has used funding from Barts Charity to engage with Christian and Muslim faith leaders to encourage them to make HIV prevention and care a priority in their communities. The work is being led by Naz Project London, a charity specialising in the sexual health of black and minority ethnic communities. Two-day workshops have been run for faith leaders, to raise awareness of HIV and issues such as the harm associated with late diagnosis or use of ineffective alternative therapies. An important role is played by advocates – people from within religious communities who have HIV and can share their experiences and bring the subject to life. More than 100 faith leaders participated in the Testing Faith training course, representing both Muslim and Christian communities. Faith congregations ran workshops and HIV events, or organised referrals to local genitourinary medicine clinics, and 735 individuals undertook an HIV test – leading to the identification of ten new cases who could be offered the appropriate care and treatment. More generally, the project is encouraging churches and religious leaders to play a more active role in protecting the sexual health of their communities.

‘Testing Faith’ was supported by a £20,000 grant from Barts Charity.

Getting the message to the masses

Rather than just relying on people coming to their clinics, the Barts Health sexual health team is heading out into the community, in a specially converted bus. Tower Hamlets has some of the country’s highest rates of sexually transmitted infections. Although existing sexual health clinics are well-used, there is clearly high demand and many people are not giving their sexual and reproductive health the attention it deserves. In an attempt to reach more people, in 2014 the Barts Health sexual health team used funding from Barts Charity to hire and kit out a trailer, setting up shop at events such as music festivals, local markets and community fairs. The aim was to raise awareness, offer testing services and provide space for confidential conversations. Following this successful venture, the team obtained further funding to purchase a converted bus that, as well as attending one-off events, also makes regular visits to communities across East London. It now addresses broader issues linked to sexual health, including drug and alcohol use and domestic violence, focusing on the topics most relevant to each local population. ‘Barts Health On the Move’ has been funded by a £88,400 grant from Barts Charity.

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Grants

ACP: A neglected childhood tumour

Children whose lives are overshadowed by a rare endocrine tumour could benefit from the joint efforts of laboratory scientists, clinicians and cancer specialists. Adamantinomatous craniopharyngiomas (ACPs) are tumours that arise from the pituitary gland and can invade neighbouring structures such as the brain and the optic and cranial nerves. Although rare, they have a devastating impact – usually diagnosed in childhood, they disrupt many aspects of hormone function, causing multiple clinical problems and having a life-long impact on patients’ quality of life. Patients are typically treated with surgery and radiotherapy, but tumours often regrow. Tumours vary significantly in their aggressiveness, and a better understanding of how tumours are likely to develop could enable clinicians to provide more tailored care to individual patients.

Working with a rodent model of ACP, Dr Carles Gaston-Massuet has identified a host of genes whose activity is disrupted in ACPs. Notably, changes in several of these genes are associated with aggressive tumour growth and poor prognosis. Furthermore, small-scale studies suggest that the same may be true in human ACP cases. Measuring changes in the activity of these genes could thus be a way to predict the future behaviour of these tumours. With funding from Barts Charity, laboratory scientist Dr Gaston-Massuet, consultant paediatric endocrinologist Dr Evelien Gevers, and evolution and cancer specialist Dr Trevor Graham have established a collaborative network within Barts and The London

School of Medicine and Dentistry and internationally, to pool resources and coordinate research on ACP. Dr Gaston-Massuet and his colleagues have begun testing the effect of drugs that appear to influence prognosis. The team is also hunting for new mutations associated with ACP – in many cases, tumour-causing mutations have yet to be identified. These genetic studies could identify targets for the development of new chemotherapies for these devastating and neglected childhood tumours. Dr Gaston-Massuet’s research is being funded by a £211,155 grant from Barts Charity.

Left: Dr Carles Gaston-Massuet and members of his laboratory team.

Trustees’ Annual Report 2014/15

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Caption

A helping hand As well as clinical care, people with an inherited cancer syndrome may also benefit from psychological support. People with von Hippel–Lindau disease develop a wide range of tumours, particularly affecting the kidney, retina, adrenal glands and nervous system. The offspring of patients can undergo testing to see if they have inherited the faulty gene causing the condition. If they have, they are in the agonising situation of knowing they will develop a serious tumour at some point, but not when or where. Professor William Drake and other Barts Health specialists meet regularly with people carrying the faulty gene, who are screened annually for emerging signs of disease. While patients are highly positive about their clinical treatment, Professor Drake’s team would like to add psychological support to the care they offer. People respond very differently to a positive genetic test: while some adjust rapidly, others find it difficult to deal with; some families pull together, others are torn apart. Unfortunately, very little is known about the psychological impact of diagnosis, or what support would be beneficial. As a first step to filling this gap, Professor Drake and clinical psychologist Dr Caroline Dancyger (above left) have begun pilot studies systematically exploring the psychological distress associated with a positive result and subsequent screening tests. This information will feed into a larger application to other funders, to support the development of a psychological profiling tool to identify those most in need of support and to shape possible therapeutic strategies. Professor Drake’s pilot project was funded by a £9,562 grant from Barts Charity.

Controlling high blood pressure

A suite of innovative surgical interventions may offer hope to patients whose blood pressure remains stubbornly high. High blood pressure is common and raises the risk of a host of cardiovascular conditions, including stroke and heart attacks. For many patients, lifestyle modifications or drugs bring their blood pressure down to normal levels, but for some, standard treatments have little impact. Consultant Dr Melvin Lobo, whose research has received significant funding from Barts Charity, is exploring a range of approaches that may help this high-risk, difficult-to-treat group, and shedding new light on the complex control of blood pressure. Funding from Barts Charity has enabled Dr Lobo to establish an innovative laboratory set up to explore the role of the nervous system in control of blood pressure. The nervous system is a key component of a complex network of signalling systems that Trustees’ Annual Report 2014/15

connect multiple organs and tissues, and which work together to monitor and regulate blood pressure. Of particular note are signals sent from the kidney to the brain. Crucially, blocking these signals – for example by eliminating the kidney tissue that generates them – may lower blood pressure. Funding from Barts Charity has enabled Dr Lobo to lead an international trial assessing this strategy – known as renal denervation – in a range of patients with difficult-totreat hypertension. The trial is based on the use of catheters inserted through the groin. However, technologies are advancing rapidly and Dr Lobo is also evaluating use of targeted high-energy ultrasound as an alternative, non-invasive approach. His extensive experience with

renal denervation has enabled him to play a lead role in developing national guidelines on use of the technique. In 2014, Dr Lobo also led a groundbreaking trial demonstrating highly positive results with a new device that creates a ‘bridge’ between an artery and vein in the upper thigh. He is currently pursuing more studies of this approach, alongside the work on renal denervation and studies on healthy individuals, to shed light on underlying physiological mechanisms controlling blood pressure. The ultimate goal, he suggests, is to develop a range of effective therapies, so patients receive the treatment most suited to their particular condition.

Dr Lobo’s research is funded through a £400,000 grant from Barts Charity.

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Fundraising

Caring for infants in the Children’s Hospital.

Ambassadors, including our new ‘Exceptional Ambassadors’, are providing a huge boost to our fundraising efforts. In September 2014, we celebrated the first anniversary of our Ambassador programme, with a dinner event at the House of Lords hosted by Lord Clement-Jones. Our growing network of Ambassadors – now numbering more than 40 – are making a major contribution to our fundraising, either by raising funds themselves or by encouraging others to become involved in our work. Those who have made outstanding contributions will receive a new accolade –‘Exceptional Ambassador’. One person truly deserving of this recognition is Tom Baker who, having been treated successfully for Hodgkin’s lymphoma, has been unstinting in his efforts to raise money for our good causes. We are planning to erect an Ambassadors’

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plaque in the atrium of the newly redeveloped King George V building at Barts Hospital which will certainly feature Tom’s name prominently. We are also fortunate that several past donors are continuing to support our work. The London Freemasons have a long tradition of supporting Barts Charity, recently raising funds to support the purchase of PlasmaJet equipment to treat ovarian cancer (see right), while the Bank of Montreal has been a long-term supporter of Barts Health’s Children’s Hospital (see right). We are also extremely grateful to Canary Wharf Contractors, whose latest donations to the Barts Kids Bones Appeal this year brought their total contributions to more than £100,000. As well as the ongoing Barts Kids

Bones Appeal and Barts Charity Safe Cycling Appeal, we have also been preparing for the launch in 2015 of a major new fundraising appeal in support of the Barts Heart Centre. Thanks to our generous and committed supporters, we have worked across a broad range of exciting projects. These include fundraising to facilitate the use of life-saving and innovative techniques to stop bleeding in seriously injured patients, community outreach programmes targeting disadvantaged youths at risk of becoming involved in gang crime, our yearly campaign to ensure all young patients across Barts Health receive a gift at Christmas time, and music therapy for premature babies and children with eye cancer.

www.bartscharity.org.uk www.bartscharity.org.uk

Banking on success With the help of the Bank of Montreal, Barts Health’s Children’s Hospital is being transformed into a welcoming and uplifting environment. The Children’s Hospital is part of the stunning new Royal London Hospital development in Whitechapel. Initially opened as plain clinical areas, two wards have already been transformed into warm and welcoming spaces, thanks to donations from the Bank of Montreal. The vibrant and friendlier environment has been greatly appreciated by both patients and care staff. Vital Arts, Barts Health’s arts organisation, worked with a range of award-winning artists and designers to develop imaginative wall decorations, as well as engaging hospital furniture and even privacy curtains. The Bank and its staff are maintaining their commitment to Barts Health children’s services, with a Christmas fundraising appeal by employees helping to pay for improved play facilities in the paediatric A&E department at the Royal London Hospital, which sees more than 35,000 children every year. Decoration of the Children’s Hospital has been made possible by £64,324 donations from the Bank of Montreal.

Fundraising

Above: Decorated wards in the Children’s Hospital. Below: Ms Elly Brockbank and the PlasmaJet machine.

Zapping cancer

Generous fundraising by London’s Freemasons has ensured that women with ovarian cancer are benefiting from the latest ‘PlasmaJet’ technology.

Hard to diagnose, ovarian cancer has often spread from its initial location by the time it is identified. Surgical treatment is known to be most effective when all cancerous tissue is removed. However, by the time it is detected, the cancer may well have spread through the abdomen, growing around blood vessels or forming small nodules on the bowel, diaphragm or other tissues – all of which present a considerable surgical challenge. A highly sophisticated surgical ‘blowtorch’, the PlasmaJet uses a blast of ionised argon gas to vaporise cancerous tissue with remarkable precision. As well as enabling surgeons to remove cancerous tissue from tricky locations, use of the PlasmaJet also means that

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more drastic measures, such as removal of part of the bowel, can be avoided. Having had a PlasmaJet machine on loan, Ms Elly Brockbank and her surgical colleagues carried out pilot studies on 16 women, in several cases achieving results that would not have been possible with conventional techniques. Thanks to generous donors to Barts Charity, the machine has now been bought outright, along with a set of disposable handpieces. Funding from Barts Charity was made possible by donations from London Freemasons (£77,000 for the Plasmajet console) and Mount Zion Lodge (£20,624 for handpieces).

www.bartscharity.org.uk

Governance

Independence On 31 July 2014, Barts Charity became the first NHS charity to gain its independence from the Department of Health. Under approvals granted by both the Department of Health and the Charity Commission, Barts Charity is no longer subject to the NHS Act 2006, the provisions of which impose constitutional and governance restrictions upon NHS charities, and which give the Secretary of State for Health powers to appoint and remove trustees, and to transfer assets. As a result of independence, Barts Charity was able to amend its constitution to a more conventional model, so that it is now a company limited by guarantee (registration number 7168381) and a registered charity in England and Wales (registration number 212563). It is governed by Articles of Association most recently updated on 15 December 2014.

Trusteesâ&#x20AC;&#x2122; Annual Report 2014/15

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Governance Charitable purposes

Trusteeship

Stakeholders

Barts Charity’s charitable purposes were unchanged by the move to independence and relate to hospital services (including research), or to any other part of the health service associated with any hospital as the Trustees think fit. Barts Charity also includes five Special Purpose Charities, which are registered with the Charity Commission but accounted for as restricted funds in the financial statements of Barts Charity under a Charity Commission uniting direction. Their purposes are set out in their respective governing documents and are largely connected with the provision of health services and medical research. The Trustees confirm that they have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing Barts Charity’s aims and objectives and in planning future activities and setting the grant-making policy for the year.

Barts Charity acts through its Directors (who are known as Trustees). At the end of the reporting year, there were 12 such Trustees. Since then, one Trustee has retired, two new Trustees have been appointed, and one has been appointed ex officio (see page 18).

Barts Charity works closely with, and provides the majority of its grants to, Barts Health NHS Trust, which provides services to the communities served by St Bartholomew’s Hospital, The Royal London Hospital, Whipps Cross University Hospital, Mile End Hospital and Newham University Hospital. It also awards grants to Barts and The London School of Medicine and Dentistry at Queen Mary, University of London and to the School of Community and Health Sciences at City University London. Although the Trustees are careful to consult with representatives of these organisations through their committee meetings and other less formal contacts, they retain their independence to act in the best interests of Barts Charity and the communities it serves.

Recruitment and induction Power to appoint new Trustees lies with the existing Trustees, in accordance with the provisions of Barts Charity’s Articles of Association. All Trustees are appointed for a fixed term of not more than three years (renewable to a maximum of nine years in total). New Trustees have an induction programme, during which they are familiarised with key constitutional and operating documents, meet senior Trustees, and tour the hospitals. All Trustees give of their time freely and no Trustee remuneration is paid. Details of Trustee expenses and related transactions are disclosed in notes 15.1–4 to the accounts. Trustees are required to disclose all relevant interests and register them with the Director of Legal and Governance and, in accordance with Barts Charity’s policy, withdraw from decisions where a conflict of interest arises.

Wider networks Barts Charity is one of over 400 NHS-linked charities in England, and is an active member of the Association of NHS Charities. As a member, Barts Charity has the opportunity to discuss matters of common concern, exchange information and experiences, and participate in conferences and seminars that offer support and education for its staff and Trustees. The Chief Executive is a member of the Council of the Association.

Trustees’ Annual Report 2014/15

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The Trustees Michael Smith Chairman Michael Smith

Nicholas Woolf

Sir Stephen O’Brien

Katherine Payne

Paul Rawlinson

Professor Ian Sanderson

Nick Anstee

Professor John Shepherd

Adviser in healthcare strategy; formerly Chairman of Nuffield Health, of NHS Trusts and of private healthcare organisations; formerly Managing Director of BUPA.

Nicholas Woolf Deputy Chairman (to 31 March 2015) Chartered Accountant; Chartered Tax Adviser; formerly partner at Arthur Andersen; formerly Non-Executive Director of Westminster PCT; Chairman and Trustee of St John of Jerusalem Eye Hospital Group, Trustee (former Chairman) of Princess Alice Hospice and Beating Bowel Cancer; Master of the Worshipful Company of Tax Advisers 2009/10.

Paul Rawlinson Deputy Chairman

(from 1 April 2015) Chartered Accountant; partner and former member of Executive Board of PricewaterhouseCoopers LLP. Andy Bruce

Dominic Hollamby

Jessica Wanamaker

Leopoldo Zambeletti

Nick Anstee

Chartered Accountant and Senior Director at City law firm King & Wood Mallesons LLP; former head of the private equity advisory practice at Arthur Andersen and Lord Mayor of London 2009/10.

Andy Bruce

William Medlicott

Dr Thomas Round

Professor John Monson

Trustees’ Annual Report 2014/15

(from 1 April 2015) Partner, Head of UK Real Estate, Linklaters LLP solicitors.

Dominic Hollamby

(from 1 April 2015) Chartered Accountant; Vice-Chairman of Rothschild Bank, Global Head of Healthcare/Life Sciences and Pharmaceuticals; formerly partner at Arthur Andersen, Honorary Treasurer of the Refugee Council and Honorary Treasurer of Home-Start.

William Medlicott

Chartered Accountant; formerly Finance Director for ITV Broadcasting, part of ITV plc.

Professor John Monson

Emeritus Professor of Clinical Endocrinology at Barts and The London School of Medicine and Dentistry; Associate Medical Director, the London Clinic.

Sir Stephen O’Brien CBE

Chairman, London Works; Chairman of Ed Miliband’s Mental Health in Society Task Force; Deputy Chairman of Woods River Cruises and Water City Developments; President of Proshanti (charity promoting the construction of a health centre in Bangladesh); Vice-President of Business in the Community; Trustee/Director of the Mayor’s Fund for London; formerly Chairman of Barts Health NHS Trust, Barts and The London NHS Trust, NHS Tower Hamlets, International Health Partners, Teach First, London First, NCH Leadership Board (now Action for Children) and the Board of Governors of the University of East London.

Katherine Payne

Solicitor; Head of Charities at the Mercers’ Company; Trustee of the Retail Trust.

Professor Ian Sanderson

Professor of Paediatric Gastroenterology, Barts and The London School of Medicine and Dentistry; Visiting Professor, University College London; Visiting Professor at Juntendo University, Tokyo, Japan; external faculty, Harvard Medical School, Boston, USA.

www.bartscharity.org.uk

Senior Management Andrew Douglas Chief Executive

Fiona Bickley Director of Legal and Governance

Professor John Shepherd

Emeritus Professor of Surgical Gynaecology at Barts and The London School of Medicine and Dentistry; Consultant Surgeon and Gynaecological Oncologist, the Royal Marsden Hospital, London; Honorary Consultant at the London Clinic and King Edward VII Hospital, London.

Jessica Wanamaker

Solicitor; Chief Executive of Volunteer Centre Kensington and Chelsea; Council Member and Chair of External Relations Committee of Goldsmiths, University of London; Board Member and Company Secretary, Contemporary Applied Arts.

Leopoldo Zambeletti

Strategic adviser to healthcare companies in corporate finance matters; Director of Nogra Pharma (Irish pharmaceutical company), Advanced Accelerator Applications (nuclear diagnostics and therapeutics company) and Summit Therapeutics (NASDAQ-listed biotech company); formerly Managing Director, Head of Healthcare Investment Banking at Credit Suisse and JP Morgan, London.

Ex Officio Trustee

The new Chairman of Barts Health NHS Trust, John Bacon CB, joins the Board of Trustees from 1 August 2015.

Belinda Dee Director of Development

Aneta Saunders Director of Community and Communications

Arati Patel Director of Finance

Dr Laura Wilson Director of Grants

Board Advisers

Advisers to the Board are appointed for their expertise in various fields for an initial two-year term, renewable to five years in total.

Dr Thomas Round

(from 1 April 2015) GP at the Bromley by Bow Health Partnership; Academic Clinical Research Fellow in Primary Care and Public Health Sciences at King’s College London; Clinical Lead for the Royal College of General Practitioners (RCGP) Essential Knowledge Updates programme; member of the National Cancer Research Institute primary care clinical studies group; represents RCGP on the management board of the National Institute for Health and Care Excellence Collaborating Centre for Cancer.

Committees

The Board of Trustees has established a series of committees so that much of the detailed work of the Board can be conducted by groups of Trustees and specialist advisers with the most relevant experience and expertise. Day-to-day management is delegated to the Chief Executive and the management team.

Finance and Audit Committee

William Medlicott (Chairman)

Governance and Remuneration Committee Michael Smith (Chairman) William Medlicott Katherine Payne Paul Rawlinson (from 1 April 2015) Nicholas Woolf (to 31 March 2015)

Grants Committee

Katherine Payne (Chairman) William Medlicott (from 1 April 2015) Professor John Monson Sir Stephen O’Brien Paul Rawlinson (from 1 April 2015) Dr Thomas Round (from 1 April 2015) Professor Ian Sanderson Professor John Shepherd Jessica Wanamaker Leopoldo Zambeletti

Investment Committee

Michael Smith (Chairman) Andy Bruce (from 1 April 2015) William Medlicott (to 31 March 2015) Paul Rawlinson Nicholas Woolf (to 31 March 2015) Leopoldo Zambeletti

Nick Anstee Dominic Hollamby (from 1 April 2015) Paul Rawlinson Nicholas Woolf (to 31 March 2015)

Governance

Trustees’ Annual Report 2014/15

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Finance review and strategic report Prudent financial and investment management has seen Barts Charity continue to deliver excellent results. This strong performance has provided a sound basis upon which to grow the grant-giving programme still further. Total gross asset base: £374.9m (+£45.1m) Net assets: £354.1m (+£46.4m) Total grant programme: £11.8m (+£1.8m)

Financial review

Spending review

Barts Charity’s proactive approach to managing its investment portfolio and annual operating activities delivered 15.1% growth in net assets for the 12-month period to 31 March 2015 (Figure 1). Annual growth has averaged 11% over the past five years, increasing net assets by 55%. Income has also been healthy, with the investment portfolio generating £10.6m for the 12-month period to 31 March 2015 (£9.1m in FY2013/14; Figure 2). Fundraising income for the 12-month period was £2.6m. Since Barts Charity uses income generated from its endowment to cover operating costs, it is in the unusual position of being able to guarantee its supporters that 100% of their contributions will be committed to charitable activities. It is this financial strength that supports the Trustees’ decision to solicit higher-value grant applications.

Total expenditure for the 12-month period was £14.37m (Figure 3; FY2013/14: £12.76m) owing to a significant increase in charitable activities. Expenditure for charitable activities relates to annual grant expenditure, which has ranged from £7.2m in FY2009/10 to £11.8m in the 12-month period to 31 March 2015 (Figure 4). With the significant recent growth in the investment portfolio, Barts Charity has been able to plan for annual grant-making expenditure of £10–12m, while maintaining provision for large one-off grant requests that would have a significant impact on healthcare delivered by Barts Health NHS Trust (such as the Barts Diabetic Kidney Centre, see page 6). The total cost of generating funds – expenditure on fundraising activities and the management of the investment portfolio – was £2.27m in the 12-month period to 31 March 2015, a reduction of £0.16m compared to FY2013/14. Of this figure, £1.55m relates to management of investments. Costs relating to financial investments amount to less than 1% of asset value (exclusive of private equity and private credit). The annual spend for property-related investments for the 12-month period to 31 March 2015, £0.20m against an average asset value of £89.4m, represents 0.2% of asset value, down from 0.6% in FY2013/14. This decline is due to rigorous management of property assets, which are now chiefly multi-let commercial properties in London and the South-East. Annual governance costs in the 12-month period to 31 March 2015 amounted to £0.30m or 2.1% of total resources expended, a decline from 2.2% in FY2013/14.

Figures as at 31 March 2015. Owing to the constitutional changes undertaken by Barts Charity to achieve independence from the Department of Health, its audited accounts (pages 25–41) cover only the 8-month period from 31 July 2014 to 31 March 2015. Supplementary financial statements (pages 42–55) have been prepared to summarise activities for the 12-month period 1 April 2014 to 31 March 2015. As such, they consolidate the 4-month activity of Barts Charity prior to independence, when it was known as Barts and The London Charity Trustee, with the 8-month activity of Barts Charity from 31 July 2014. The figures quoted in this section relate to the 12-month period to 31 March 2015 unless stated otherwise.

Trustees’ Annual Report 2014/15

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Finance

Net assets

Summary of expenditure

Figure 3:

400 £m

2.1%

350

1.4%

300

9.4%

250

5.0%

200 150 82.2%

100 50

£11.80m

Charitable activity

12 20

11/

10 20

Capital in perpetuity Unrestricted funds Restricted funds Expendable endowment

Fundraising

£0.72m

Financial investment management

£1.35m

Property investment management

£0.20m

Governance

£0.30m

See note 1.3 to the accounts for details of fund structure

Figure 2:

Income

Figure 4:

Grant expenditure

£m

£m 10 15 8 10

4 5 2

5 /1

14 20

20 1

12 20

11/

10 20

5 /1 14

12 20

20 1

/1 10

11/

Barts Charity conducts an annual review of its Statement of Investment Policies and Objectives, which sets out its financial and investment objectives. Endowment and unrestricted funds are intended to last into perpetuity and are managed accordingly. Hence the investment policy provides for long-term stability, preservation of purchasing power and liquidity sufficient for the funding of annual grant-making and other operating activities. It also sets out guidelines for the portfolio’s risk profile, strategic asset allocation and investment restrictions. These restrictions prevent Barts Charity from direct investment in tobacco-related securities and from engaging in ‘soft commission’ arrangements. The investment portfolio is defined by a relatively simple structure with below-average risk and complexity (Table 1). Movements in the investment portfolio in the 12-month period to 31 March 2015 continued the realignment begun in FY2007/08 to create a high-quality portfolio that is diversified, robust and generates a reliable source of income and market appreciation to support the grant programme. The target allocation of 30% for property and 70% for financial investments was reached during the reporting year. Financial investments are principally held in 14 investment funds, allowing for diversification by asset type, risk profile, geographical exposure and manager style (active and passive). There are additional holdings in both private equity (with a focus on secondaries) and private credit, which account for only 4.18% and 1.58%, respectively, of the total investment portfolio.

Figure 1:

Investment review

Other income Legacies and donations Stocks, shares and cash dividends Property

Trustees’ Annual Report 2014/15

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Finance

Investment review cont. Measured against standard benchmarks, the investment portfolio is showing healthy performance during uncertain economic times and the transitioning of the portfolio (Table 2). The target for the portfolio is to earn an average real return of 4.5% over a rolling three-year period. This has been achieved since the inception of the current portfolio in November 2005. Despite low levels of risk, long-term investment returns have exceeded market benchmarks and the performance of peers. Several factors have contributed to this success: a realignment of direct property holdings to focus on lower-risk ‘core’ investments; an emphasis on investment in straightforward cash-yielding strategies; and remaining fully invested in order to minimise the low yield on cash deposits. There has also been a tactical shift from sovereign bonds to public credit in response to a perceived overvaluation of the former. Barts Charity’s investment performance is monitored quarterly by the Investment Committee with the assistance of Cambridge Associates Ltd, which provides advice and monitoring services for the financial portfolio. Gryphon Property Partners provides similar support for the property portfolio. In addition, Workman provides tactical advice and management services for the property portfolio.

Table 1:

Asset allocation FY2014/15 (%)

FY2013/14 (%)

FY2012/13 (%)

Target (%)

Growth drivers (public and private equity)

48.8

50.7

48.2

45.5

Diversifiers (public and private credit)

9.2

9.9

16.6

5.0

Inflation hedging (property and commodities)

32.8

29.9

22.7

30.0

Deflation/disaster hedging (fixed income and cash)

9.2

9.6

12.5

19.5

Table 2:

Total investment portfolio performance Cumulative trailing 1 Year (%)

Annualised trailing 3 Year (%)

Annualised since November 2005 (%)

12.7

13.8

9.3

13.6

9.7

5.9

Value added

–0.9

4.1

3.4

Total assets excl. private investments

9.3

6.1

12.0

8.8

7.0

Value added

–2.7

0.5

–0.9

Total assets excl. property

8.9

9.2

6.1

12.0

9.0

7.0

–3.1

0.2

–0.9

Total assets Long-term policy benchmark

Long-term policy benchmark

Long-term policy benchmark Value added

Trustees’ Annual Report 2014/15

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Finance

Future plans

Reserves and risks

Barts Charity has plans to grow its grant-giving programme, further develop its fundraising presence, and integrate its business systems to enhance operational efficiency. Priorities include:

Barts Charity’s reserves, spending and long-term investment policies are updated annually and are intended to deliver the following objectives:

A continued focus on major project funding delivering patient benefits over the lifetime of a grant, over and above the twice-yearly grant rounds; Launching a cardiac appeal to support the Barts Heart Centre; Improving Barts Charity’s visibility and raising awareness in Barts Health hospitals through increased signage and community-based fundraising activities; Implementing new business systems and IT infrastructure to integrate grant-giving, fundraising and financial operations.

Reserves policy

Provide for long-term stability and liquidity sufficient for the funding of the annual grant-making and other operating activities, and occasionally exceptional grants beyond the normal annual level when appropriate circumstances arise; Maintain the ‘real’ purchasing power of the reserves such that Barts Charity can exist in perpetuity; Confirm the annual minimum level to which Barts Charity could expect reserves to fall temporarily in the worst case as a result of exceptional grants and/or market movements; and Agree actions to rebuild the levels of reserves if the minimum is not sustained.

The management of risk

The Trustees regularly review the major risks to which Barts Charity is exposed. An operational risk register is reviewed and updated annually as part of the annual business planning process, while a strategic risk register is reviewed by the Trustees at all Board and Committee meetings. Where appropriate, systems and procedures have been established to mitigate risks, and these are also reviewed regularly. The major risks include the ability to sustain the current level of income, a fall in investment values and returns, and unforeseen changes in the operation of the NHS. These risks are mitigated by careful portfolio construction, active management and review of investments, and regular liaison with Barts Health NHS Trust, Barts and The London School of Medicine and Dentistry, and the School of Community and Health Sciences at City University London.

Inside the new Barts Heart Centre.

Trustees’ Annual Report 2014/15

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Finance

Donations and grants Donations and grants

(greater than £50,000)

Legacies Legacies £5,000 and over

K Ashton

Boston Scientific

M Berill

Canary Wharf Contractors

W Bryan

Fund

E Collins

London Freemasons

D Elliott

Oleander Corporation

J Flavell

Walk the Walk Worldwide

S Fox B Jones C Kemp T McKeagney N Mitchener A Page F White J Wright

Professional advisers Bank

Property advisers

Royal Bank of Scotland

Gerald Eve LLP

London EC2M 4RB

London W1G 0AY

280 Bishopsgate

Auditors KPMG LLP

15 Canada Square Canary Wharf

72 Wellbeck Street Gryphon Property Partners 60 Gresham Street London EC2V 7BB Workman LLP

London E14 5GL

Alliance House

Legal advisers

London SW1H 0QS

Bircham Dyson Bell

50 Broadway

12 Caxton Street

Investment adviser

London SW1H 0BL

Cambridge Associates Ltd

Capsticks Solicitors LLP

Cardinal Place

(to 31 March 2015)

1 St George’s House East St George’s Road London SW19 4DR Taylor Wessing LLP

80 Victoria Street London SW1E 5JL Global custodian

The Northern Trust Company 50 Bank Street

5 New Street Square

Canary Wharf

London EC4A 3TW

London E14 5NT

HR advisers

Insurance broker

Capsticks HR Advisory

Willis Ltd

1 St George’s House East

51 Lime Street

St George’s Road

London EC3M 7DQ

(to 31 March 2015)

The Willis Building

London SW19 4DR St James’s Place Beech House

Brotherswood Court Great Park Road Bristol BS32 4QW

Left: Curtains and furniture designed by Ella Doran in Barts Health Children’s Hospital.

Trustees’ Annual Report 2014/15

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Accounts Statement of Trustees’ responsibilities in respect of the Trustees’ Annual Report and the financial statements Financial statements for 8 months to 31 March 2015 Statement of Trustees’ responsibilities

Auditor’s report

Financial statements and notes to the accounts

The Trustees are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and regulations. Company law requires the Trustees to prepare financial statements for each financial year. Under that law, they are required to prepare the financial statements in accordance with UK Accounting Standards and applicable law (UK Generally Accepted Accounting Practice). Under company law, the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of the excess of expenditure over income for that period. In preparing these financial statements, the Trustees are required to: Select suitable accounting policies and then apply them consistently; Make judgements and estimates that are reasonable and prudent; State whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and Prepare the financial statements on a going concern basis unless it is inappropriate to presume that the charitable company will continue its activities. The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company’s transactions and disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the charitable company and to prevent and detect fraud and other irregularities. The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the UK governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. The Trustees have accepted responsibility to prepare the non-statutory accounts for the year ending 31 March 2015 on the basis set out in the background note to the non-statutory accounts. In preparing the non-statutory accounts, the Trustees have: Selected accounting policies that are consistent with those used in the statutory financial statements of Barts Charity for the period ended 31 March 2015 and then applied them consistently; Made judgements and estimates that are reasonable and prudent; and Prepared the non-statutory accounts on the going concern basis as they believe that the entity will continue in business. Signed on behalf of the Trustees of Barts Charity.

Chairman 15 July 2015

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Independent auditor’s report to the members of Barts Charity We have audited the financial statements of Barts Charity for the period ended 31 March 2015 set out on pages 27–41. The financial reporting framework that has been applied in their preparation is applicable law and UK Accounting Standards (UK Generally Accepted Accounting Practice). This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members 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 charitable company and its members as a body, for our audit work, for this report, or for the opinions we have formed. Respective responsibilities of Trustees and auditor As explained more fully in the Statement of Trustees’ Responsibilities set out on page 25, the Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. 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.

Trustees’ Annual Report 2014/15

Scope of the audit of the financial statements A description of the scope of an audit of financial statements is provided on the Financial Reporting Council’s website at http://www.frc.org.uk/ auditscopeukprivate. Opinion on financial statements In our opinion the financial statements: give a true and fair view of the state of the charitable company’s affairs as at 31 March 2015 and of its incoming resources and application of resources, including its income and expenditure, for the period then ended; have been properly prepared in accordance with UK Generally Accepted Accounting Practice; and

Matters on which we are required to report by exception We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: the charitable company has not kept adequate accounting records or returns adequate for our audit have not been received from branches not visited by us; or the financial statements are not in agreement with the accounting records and returns; or certain disclosures of Trustees’ remuneration specified by law are not made; or we have not received all the information and explanations we require for our audit.

have been prepared in accordance with the requirements of the Charities Act 2006. Opinion on other matters prescribed by the Companies Act 2006 In our opinion the information in the Trustees’ Annual Report, which constitutes the Directors’ Report, for the financial period for which the financial statements are prepared is consistent with the financial statements.

Fleur Nieboer For and on behalf of KPMG LLP, Statutory Auditor Chartered Accountants 15 Canada Square London E14 5GL 16 July 2015 KPMG LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006.

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Accounts

Statement of Financial Activities for the 8-month period ended 31 March 2015 8 months to 31 March 2015 Notes Unrestricted Restricted Endowment Total funds funds funds funds £000 £000 £000 £000 Incoming resources Incoming resources from generated funds: Voluntary income: Donations Legacies Grants and other voluntary income Total voluntary income Investment income 7.3 Total income from generated funds and total incoming resources

30 97 0 127 6,413

745 841 336 1,922 420

0 0 0 0 0

775 938 336 2,049 6,833

6,540

2,342

8,882

Resources expended Costs of generating funds: Voluntary fundraising costs Investment management costs: Financial Property Total cost of generating funds

515

517

896 150 1,561

0 0 2

0 0 0

896 150 1,563

Charitable activities 2.1 Governance costs Total resources expended

9,153 203 10,917

1,763 0 1,765

0 0 0

10,916 203 12,682

Net incoming/(outgoing) resources before other recognised gains/(losses)

(4,377)

577

(3,800)

Gains/(losses) on revaluation and disposal of investment assets Receipt from prior year property transaction 10.5

8,477 6,718

109 0

17,856 9,984

26,442 16,702

Net movement in funds Fund balances transferred from Barts and The London Charity Trustee as at 31 July 2014 10.4 Balances representing permanent endowment funds 10.1

10,818

686

27,840

39,344

85,738

19,062

197,322

302,122

12,641

Fund balances carried forward at 31 March 2015

96,556

19,748

237,803

354,107

During the reporting period, no operations have been either discontinued or acquired by Barts Charity. The notes on pages 30–41 form part of these accounts.

Trustees’ Annual Report 2014/15

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Balance Sheet as at 31 March 2015 Notes Unrestricted Restricted Endowment funds funds funds £000 £000 £000

8 months to 31 March 2015 Total funds £000

Fixed assets Intangible and tangible assets 5 Heritage assets 6 Investments 7 Total fixed assets

130 0 93,483 93,613

0 0 22,849 22,849

0 14,428 223,375 237,803

130 14,428 339,707 354,265

Current assets Debtors 8 Cash at bank and in hand Total current assets

8,268 12,408 20,676

0 0 0

8,268 12,408 20,676

Creditors: amounts falling due within one year

(12,538)

(2,665)

(15,203)

Net current assets/(liabilities)

8,138

(2,665)

5,473

Total assets less current liabilities Creditors: amounts falling due after more than one year 9.2

101,751

20,184

237,803

359,738

(5,195)

(436)

Total net assets

96,556

19,748

237,803

354,107

10.1

237,803

10.2

0 95,581 975

19,748 0 0

0 0 0

19,748

96,556

19,748

237,803

354,107

Funds of Barts Charity Capital funds: Endowment funds Income funds: Restricted funds Unrestricted funds General funds Designated funds

9.1

10.3

Total funds

(5,631)

95,581 975

The notes on pages 30–41 form part of these accounts.

Michael Smith Chairman 15 July 2015

Trustees’ Annual Report 2014/15

William Medlicott Trustee

www.bartscharity.org.uk

Accounts

Cash Flow Statement for the 8-month period ended 31 March 2015 8 months to Notes 31 March 2015 £000 Cash outflow from operating activities

Returns on investments and servicing of finance Investment income Net cash inflow from returns on investments and servicing of finance

(4,574)

7,374 7,374

Capital expenditure and financial investment Payments to acquire intangible fixed assets Payments to acquire investment assets Receipts from sales of investment assets Receipt from prior year property transaction

(47) (31,720) 24,476 16,702

Net cash inflow from capital expenditure and financial investment

9,411

12,211

Increase in cash and liquid resources

The notes on pages 30–41 form part of these accounts.

Trustees’ Annual Report 2014/15

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Notes to the accounts 1 Accounting policies 1.1 Accounting convention The financial statements have been prepared under the historic cost convention, with the exception of investments and heritage assets, which are included at period-end market value. The financial statements have been prepared in accordance with the Statement of Recommended Practice by Charities (SORP 2005) issued in March 2005, applicable UK Accounting Standards, the Charities Act 2011, and the Audit Commission Act 1998.

2014. The differences in assets, liabilities, incoming resources and expenditure during this one-day period were not material. By virtue of a Charity Commission Order dated 31 July 2014, Barts Charity was appointed as trustee of the permanent endowment assets remaining in Barts and The London Charity and the four Special Purpose Charities related thereto. By a Charity Commission uniting direction dated 31 July 2014, Barts Charity is permitted to account for these trustee assets within its accounts.

1.3 Fund structure 1.2 Transfer of assets and legal a. Restricted funds are funds for separation which a legal restriction exists Barts Charity is a charitable company over their use and related income limited by guarantee, regulated solely is restricted to the purpose of the by the Charity Commission. Before fund as set out in note 10.2. 31 July 2014, it was known as Barts b. Endowment funds include the and The London Charity Trustee and following: was regulated by both the Charity (i) Permanent endowment funds: Commission and the Secretary of capital is held in perpetuity but State for Health, under the powers the related income may be used set out in the NHS Act 2006. Under for unrestricted or restricted an appointment by the NHS Trust purposes as specified by the Development Authority effective donor. 1 April 2013, it acted as the trustee of (ii) Expendable endowment: the unincorporated charity, Barts and donations received by the The London Charity. hospitals of Barts Health NHS By a Deed of Assignment effective Trust prior to 5 July 1948 (the midnight 30 July 2014, Barts and The date on which the NHS was London Charity Trustee transferred established). The income and all of the assets which it held in its capital are available for such capacity as trustee (save as set out expenditure related to sections below) to itself as absolute owner. The 220(3) and 220(5) and paragraph Charity Commission approved this 10(1) of Schedule 4 of the National assignment in an Order dated 28 July Health Service Act 2006 (see c(i) 2014. By a Statutory Instrument dated below). 31 July 2014 (2014 No. 1905), Barts and c. Unrestricted funds and their The London Charity Trustee ceased to related income are available be regulated by the Secretary of State for use at the discretion of the for Health under the provisions of the Trustees for general charitable NHS Act 2006. Barts and The London purposes relating to the Charity Trustee also changed its name following: to Barts Charity with effect from the (i) General same date. Sections 220(3) and 220(5) and Following the legal separation, paragraph 10(1) of Schedule 4 of the opening balance sheet date for the National Health Service Act Barts Charity is 31 July 2014; however, 2006: To hold the property on for ease of understanding, the trust for such purposes relating figures reported in these financial to hospital services (including statements commence as at 1 August

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research), or to any other part of the health service associated with any hospital, as the person holding the property thinks fit. (ii) Designated The Trustees have chosen to earmark these funds for specific areas within the general charitable purposes (see note 10.3). 1.4 Incoming resources Donations and gifts are recognised in the Statement of Financial Activities in the period received, while pecuniary and residuary legacy income is recognised when receivable. Investment income is recognised in the Statement of Financial Activities on an accrual basis. 1.5 Resources expended All expenditure is accounted for on an accrual basis. Direct costs of generating funds (including fundraising), charitable activities and support and governance costs are charged to the relevant category or activity according to the area to which the expenditure relates. Support costs incurred that relate to more than one cost category are apportioned based on estimates of time spent on activity in each area. 1.6 Fixed assets a. Tangible and intangible assets Tangible and intangible assets are included in the balance sheet at cost less accumulated depreciation. Intangible assets include software and related development costs. Depreciation is charged on a straight-line basis over the estimated useful life of five years. b. Heritage assets Heritage assets are capitalised and include art collections, historic archives, sculptures, ceramics, surgical instruments, uniforms, teaching materials and other items. They are reported on

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Accounts

the balance sheet at their insured values, which are based on replacement values in the retail market or, where appropriate, in the second-hand retail market with items of a similar nature, age, condition and quality. They are not depreciated but are revalued every five years with the last valuation completed by Gurr Johns, auctioneers and valuers, in March 2014. Any surplus or deficit on revaluation is credited or debited to the Statement of Financial Activities. Assets are reviewed regularly for significant damage and appropriate remedial works are carried out wherever possible to preserve the assets or prevent further deterioration. See note 6 for further details. c. Investments Quoted investments are stated at market value at the balance sheet date. Asset purchases and sales are recognised at date of trade. Unquoted pooled financial investments are stated at fair value, the basis of fair value being the market value of the underlying investments held. These valuations are provided by the fund managers and are subject either to independent valuation or annual audit. Private equity investments are held through funds managed by private equity groups. As there is no identifiable market price for private equity funds, these funds are included at the most recent valuations from the private equity groups and adjusted for cash flows if the valuation is not available at the balance sheet date. The annual market valuation of Barts Charity’s investment properties has been carried out in accordance with the Royal Institution of Chartered Surveyors’ ‘Valuation Standards’ (January 2015). The valuations were carried out by Gerald Eve LLP, Chartered

Trustees’ Annual Report 2014/15

Surveyors, who have been instructed as external valuer to value Barts Charity’s freehold and long leasehold interests at 31 March 2015. They have reported their opinion of the aggregate of the values of Barts Charity’s interest in the individual buildings. 1.7 Realised and unrealised gains and losses Realised and unrealised gains and losses on investment assets are included in ‘gains and losses on investment assets’ within the Statement of Financial Activities. 1.8 Overdraft facility An overdraft facility permitted under charity law and supported by Bart’s Charity’s Memorandum and Articles of Association was renewed in April 2015. It is used for short-term cash flow requirements while also allowing Barts Charity to be fully invested.

of participating in the Scheme is taken as equal to the contributions payable to the Scheme. Applicable rates for employee contributions for the NHS Pension Scheme ranged from 9.3% to 13.5% during the 8-month period to 31 March 2015, while employer contributions were 14%. Employees employed after 1 April 2011 can choose to belong to a Defined Contribution Scheme, which is a Group Personal Pension Scheme. For the 8-month period to 31 March 2015, the rates of employer contribution for the Defined Contribution Scheme were 9% for directors and 7% for other staff. Employee contributions are voluntary.

1.9 Pensions contributions The cost of employer contributions to the NHS Pension Scheme and the Defined Contribution Scheme is charged to the Statement of Financial Activities. Certain past and present employees are covered by the provisions of the NHS Pensions Scheme. Details of benefits payable under these provisions can be found on the NHS Pensions website (www.pensions.nhsbsa. nhs.uk). The Scheme is an unfunded, defined benefit scheme, preparing its own statements, that covers NHS employers, general practices and other bodies, allowed under the direction of the Secretary of State, in England and Wales. The Scheme is not designed to be run in a way that would enable NHS bodies to identify their share of underlying Scheme assets and liabilities. Therefore, the Scheme is accounted for as if it were a defined contributions scheme: the cost to an NHS body

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Notes to the accounts Details of 2.1 resources expended – charitable activities by funding source Research Enhancement in service delivery Innovation and training Patient and community engagement Others Reversal of prior years’ grants (a) Total

8 months to Grant- Activities Staff and 31 March 2015 funded undertaken support Total activity directly costs funds £000 £000 £000 £000 9,528 646 0 266 0 (525) 9,915

2 126 258 28 188 0 602

261 42 51 13 32 0 399

9,791 814 309 307 220 (525) 10,916

(a) Reversal of prior years’ grants reflects underspend across various projects which were committed to prior to the transfer of assets from Barts and The London Charity Trustee on 31 July 2014 (see note 1.2). Although Barts Charity maintains regular contact with grantholders, there are occasions when planned expenditure is not achievable and the related grant accrual is reversed.

Direct charitable 2.2 8 months to expenditure by 31 March 2015 institution Aggregate amount paid £000

5,791 3,691 433 9,915

Barts Health NHS Trust Barts and The London School of Medicine and Dentistry Other Grant-funded activity Activities undertaken directly for benefit of patients at Barts Health NHS Trust Total grants awarded

A detailed list of grants paid to institutions during the 8-month period can be obtained on application to Barts Charity’s office at 12 Cock Lane, London EC1A 9BU.

602 10,517

paid Grants individuals to

2.3

No grants were paid to individuals during the 8-month period ending 31 March 2015.

Auditor’s remuneration

3.1

During the 8-month period ending 31 March 2015, the external auditor was paid £50,280 in respect of the audit of statutory accounts of Barts Charity. Additional costs of £8,400 were incurred in relation to transfer of assets and legal separation, including the audit of the non-statutory statements on pages 42–55 (see note 1.2).

Trustees’ Annual Report 2014/15

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Accounts

Cost of generating funds Resources 3.2 expended, Fundraising Investment Property Charitable Governance including management management activity support costs £000 £000 £000 £000 £000

Direct costs

838

10,517

8 months to 31 March 2015 Total £000 11,500

Salary costs 293 44 49 300 69 755 Temporary staff 26 0 0 8 1 35 Audit fees 0 0 0 0 59 59 Insurance 0 0 0 0 22 22 Professional fees 0 0 0 0 29 29 Apportionment of other overheads 138 14 16 91 23 282 Total support costs 457 58 65 399 203 1,182 Total resources 517 896 150 10,916 203 12,682 Where possible, costs have been directly allocated to one of the above categories. Of total overheads, 79% were allocated in this manner. The remainder, relating to general office costs, has been allocated on the basis of staff time.

Analysis of 4.1 8 months to costs staff 31 March 2015 Total £000

Salaries and wages Social security costs Other pension costs Total

672 71 47 790

Average monthly number of full-time equivalents in the 8-month period:

Pension 4.2 The following pension contributions were made for employees within the annual emolument ranges contributions indicated: for higher paid Value of Number employees contributions of staff £000 receiving £ contributions 70,001 to 80,000 80,001 to 90,000 170,001 to 180,000

11 11 1

1 1 1

The pension contributions are for the 12-month period whereas costs in note 4.1 are for 8 months only.

Trustees’ Annual Report 2014/15

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Notes to the accounts Higher paid 4.3 The following number of employees received annual emoluments falling within the ranges indicated: employees £ 31 March 2015

1 1 1 1

60,000 to 70,000 70,001 to 80,000 80,001 to 90,000 130,001 to 140,000

These employees have been in post for 12 months and so the emoluments indicated above are for this period of time, whereas the cost included in note 4.1 is for 8 months only.

Fixed assets 5 Fixed assets: Intangible and tangible

Freehold land and buildings £000

Fixtures, Intangible fittings and assets equipment £000 £000

Tangible and intangible fixed assets: Balance transferred by Barts and The London Charity Trustee as at 31 July 2014 0 229 Additions 0 0 Disposal 0 0 Balance at 31 March 2015 0 229 Accumulated depreciation: Balance transferred by Barts and The London Charity Trustee as at 31 July 2014 0 137 Charge for the period 0 30 Balance at 31 March 2015 0 167 Net book value at: 31 March 2015 0 62 Point of transfer from Barts and The London Charity Trustee as at 31 July 2014 0 92

Total

£000

51 59 0 110

280 59 0 339

35 7 42

172 37 209

130

108

Balances transferred represent the accumulated cost and depreciation on tangible fixed assets held by Barts and The London Charity Trustee up to 30 July 2014 (see note 1.2).

Trustees’ Annual Report 2014/15

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Accounts

Heritage assets

2015 £000

Transfer from Barts and The London Charity Trustee at 31 July 2014 Revaluation Valuation at 31 March 2015

14,428 0 14,428

2015 £000

Type of heritage asset: Antique furniture 2,165 Paintings, prints and drawings 5,631 Books and manuscripts 2,897 Other 3,735 Total 14,428

The balance transferred represents the valuation of the heritage assets held by Barts and The London Charity Trustee up to 30 July 2014 (see note 1.2).

Painting, prints and drawings include two William Hogarth paintings which have been valued at £1.4m and £1.25m. Other heritage assets include clocks, barometers, works of art, sculptures, ceramics, glass, silver and gold (see note 1.6b).

Fixed asset investments Property Financial Analysis of 7.1 asset fixed £000 £000 investments

2015 Total £000

Balanced transferred by Barts and The London Charity Trustee as at 31 July 2014 78,028 Assets representing permanent endowment 12,641 Less: Disposals at carrying value (11,364) Add: Acquisitions at cost 9,633 Net gain/(loss) on revaluation 13,928 Market value at 31 March 2015 102,866

214,309 292,337 0 12,641 (11,938) (23,302) 22,151 31,784 12,258 26,186 236,780 339,646

61 236,841

Cash held as part of the investment portfolio Total

0 102,866

61 339,707

The balance transferred represents the valuation of the financial and property investments held by Barts and The London Charity Trustee up to 30 July 2014, less those representing the permanent endowment funds which are reported in Barts Charity accounts by virtue of a Charity Commission uniting direction (see note 1.2). A cash sum of £979,000, held as part of the investment portfolio, was also transferred from Barts and The London Charity Trustee on 31 July 2014.

Trustees’ Annual Report 2014/15

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Notes to the accounts Investments 7.2 Market value at 31 March 2015: Held in UK £000

Held outside UK £000

2015 Total £000

Investment properties 102,866 Investments listed on stock exchange 89,253 Cash held as part of the investment portfolio 61 Alternative investments 4,499 Total 196,679

0 128,019 0 15,009 143,028

102,866 217,272 61 19,508 339,707

Financial investments held at 31 March 2015 include 14 investment funds, representing 92% of the total value, and eight separate alternative investments.

8 months to Analysis of 7.3 Total gross income Held Held 31 March 2015 gross income in UK outside UK Total from investments £000 £000 £000 Investment properties Investments listed on stock exchange Interest on cash held as part of the investment portfolio Total

Analysis of debtors

3,398 1,977

0 1,410

3,398 3,387

48 5,423

0 1,410

48 6,833

Amounts falling due within one year as at 31 March:

2015 £000

Trade debtors Prepayments Accrued income Other debtors Total

1,786 135 1,302 5,045 8,268

Accrued income relates to income on financial investments.

Other debtors includes a receivable of £5.07m due in January 2016, part of property sales proceeds (see note 13). It is recognised net of its unamortised discount (£40,000 at 31 March 2015), with related interest income recognised as investment income in the Statement of Financial Activities.

Analysis of 9.1 Amounts falling due within one year as at 31 March: 2015 creditors £000

Trade creditors Other creditors Grant accruals Deferred income Total

Deferred income represents rent billed to the tenants in advance for first quarter of the following financial year.

Trustees’ Annual Report 2014/15

1,387 157 12,583 1,076 15,203

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Accounts

Analysis of 9.2 Total creditors falling due after more than one year as at 31 March: creditors (continued)

2015 £000

Grant accruals Total

5,631 5,631

There are no grants payable whose values require subjective estimation and therefore no provisions have been included in this set of accounts.

Analysis of 10.1 Endowment funds funds

BTLCT funds transfer £000

Permanent endowment funds £000

Gains and losses £000

Balance 31 March 2015 £000 224,071

Expendable endowments 197,322 0 26,749 Permanent endowments: H F Bailey 0 5,248 453 0 1,903 164 Aylwen Bursaries Edward Hewlett 0 1,563 135 JJ Guthrie Blandford and George Shuter Staff Benefit 0 1,375 119 Hannington 0 616 53 0 458 39 David Hughes Bailey City and Hackney 0 193 17 Hamblen Thomas 0 192 17 MacCready Mann 0 189 16 11 Funds each under £200k 0 904 78 Total 197,322 12,641 27,840

5,701 2,067 1,698 1,494 669 497 210 209 205 982 237,803

Note 1.3 on page 30 provides further details of the endowment fund structure. The funds transferred represent the expendable endowment fund balance held by Barts and The London Charity Trustee up to 30 July 2014. The permanent endowment funds are reported in Barts Charity accounts by virtue of a Charity Commission uniting direction (see note 1.2). There were no other resources received, expended or transferred in the reporting period.

Details of material funds Name of fund

Nature and purpose of each fund

Expendable endowments For purposes relating to NHS hospitals Permanent endowments: H F Bailey For children’s services Aylwen Bursaries Funding of research bursaries Edward Hewlett General purposes JJ Guthrie Blandford and George Shuter Staff Benefit Staff benefit Hannington General purposes David Hughes General purposes Bailey City and Hackney For children’s services Hamblen Thomas For children’s services MacCready Mann Research purposes

Trustees’ Annual Report 2014/15

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Notes to the accounts 10.2 Restricted funds

BTLCT Incoming Resources funds resources expended transfer £000 £000 £000

Gains Transfer Balance and between 31 March losses funds 2015 £000 £000 £000

Material funds JJ Guthrie Blandford and George Shuter Staff Benefit 1,322 50 17 134 0 1,523 Margaret Centre 1,251 44 (9) 0 0 1,286 Tallerman Research Fund Legacy 993 13 0 0 0 1,006 Children’s Fund 733 54 (46) 0 0 741 Gastroenterology Whipps Cross 0 1 0 0 619 620 Irritable Bowel Disease Research 0 1 0 0 563 564 Cancer Fund 473 51 0 0 0 524 Renal Disease Research 512 6 0 0 0 518 Funds £300k–£400k (4) 1,170 173 (24) 0 0 1,319 Funds £200k–£300k (5) 1,789 788 (42) 0 (1,182) 1,353 Funds £100k–£200k (21) 2,788 308 (169) 0 0 2,927 Others 8,031 853 (1,492) (25) 0 7,367 Total 19,062 2,342 (1,765) 109 0 19,748 Note 1.3 on page 30 provides further details of the restricted fund structure. The funds transferred represent the restricted fund balances held by Barts and The London Charity Trustee up to 30 July 2014 (see note 1.2). The transfer between funds relates to two substantial legacies that were held in a holding legacy fund until the appropriate Special Purpose Funds were created to receive them. Details of material funds Name of fund Nature and purpose of each fund JJ Guthrie Blandford and George Shuter Staff Benefit Staff benefit Margaret Centre Margaret Centre at Whipps Cross hospital Tallerman Research Fund Legacy Facilitates research into children’s diseases Children’s Fund Treatment of and research into paediatric illnesses Gastroenterology Whipps Cross Gastroenterology department at Whipps Cross Irritable Bowel Disease Research Irritable bowel disease research Cancer Fund General cancer purposes Renal Disease Research Renal research

Trustees’ Annual Report 2014/15

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Accounts

10.3 Designated funds BTLCT Incoming Resources funds resources expended transfer £000 £000 £000

244 132 110 108 3,246 3,840

21 15 8 8 27 79

0 0 0 0 (2,706) (2,706)

Transfer between funds £000 0 0 0 0 (238) (238)

Balance 31 March 2015 £000

HF Bailey Newham Community HF Bailey City and Hackney Cardiac fund Sir Alan Parks research fund Funds up to £100k (24) Total

265 147 118 116 329 975

The funds transferred represent the designated fund balances held by Barts and The London Charity Trustee up to 30 July 2014 (see note 1.2). During the 8-month period, a grant of £3.4m was made to Barts Diabetic Kidney Centre, of which £2.45m was expended from one designated fund. Of the transfer between funds, £223,000 represents a decision to utilise designated funds for a grant awarded from unrestricted funds in a prior year. A further £15,000 previously designated was transferred to unrestricted funds during the 8-month period.

Details of material funds Name of fund

Nature and purpose of each fund

HF Bailey Newham Community Paediatric services provided by Newham CCG HF Bailey City and Hackney East London NHS Foundation Trust Cardiac fund Treatment of and research into cardiac disease Sir Alan Parks research fund Treatment of and research related to gastrointestinal tract illnesses

Transfer of 10.4 net assets from Barts and The London Charity Trustee

By a Deed of Assignment effective midnight 30 July 2014, Barts and The London Charity Trustee transferred all the assets that it held in its capacity as trustee to itself as absolute owner. The Charity Commission approved this assignment in an Order dated 28 July 2014 (see note 1.2).

Prior year property transaction receipt

The sale of an investment in a freehold interest in land and buildings in the City of London was completed on 1 April 2011 but was subject to further payments. During the 8-month period, £16.7m was received in relation to this transaction, of which £12.4m was received on 31 March 2015 (see note 12).

10.5

Trustees’ Annual Report 2014/15

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Notes to the accounts Notes to 11 Reconciliation of cash flows from operating activities to net outgoing resources 8 months to the Cash Flow 31 March 2015 Statement £000 Net outgoing resources Non-operating cash flows eliminated: Investment income Depreciation charges Decrease in debtors Increase in creditors Cash outflow from operating activities

(6,833) 37 2,797 3,225 (4,574)

Analysis of changes in cash

BTLCT Movement balance transfer £000 £000

(3,800)

Cash in hand and at bank Change in cash and liquid resources in the 8-month period

197 197

12,211 12,211

Balance 31 March 2015 £000 12,408 12,408

The balance transferred represents the cash balances held by Barts and The London Charity Trustee up to 30 July 2014, when legal separation from the Department of Health was achieved and assets were transferred to Barts Charity.

A receipt of £12.4m, in relation to a prior year property transaction, was received on 31 March 2015. This was subsequently invested in two existing investment funds (see note 10.5).

Contingent assets

There is one contingent asset and one deferred debtor (note 8) arising from a prior year property disposal which were transferred from Barts and The London Charity Trustee on 31 July 2014 (see note 1.2). The sale of a freehold interest in land and buildings located in Whitechapel was completed on 31 January 2013 for £49.38m with a book value of £30.02m. A sum of £44.46m was received in cash along with a non-interest-bearing receivable of £5.07m due on 31 January 2016 (see note 8). A sum of £1.17m is also held in escrow pending satisfactory resolution of the rights of light impact on a specific aspect of the site. In addition, the transaction is subject to further payments by the purchaser of up to £9m, contingent upon the floor area of planning permission being sought for redevelopment of the land. These contingent assets have not been recognised in the financial statements.

Contingent liability

There is one contingent liability as at 31 March 2015. A grant of £6.8m, to fund the building of a new Children’s Centre at Newham Hospital, was agreed in principle in September 2014. This is subject to a number of conditions and is premised on several uncertain future events.

Trustees’ Annual Report 2014/15

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Accounts

Trustee 15.1 Trustee expenses reimbursed and Trustee expenses of £1,200 (for hospitality) were reimbursed to one Trustee during the 8-month period. connected persons transactions

15.2

Trustee remuneration No Trustee received remuneration during the 8-month period.

15.3

Details of transactions with Trustees or connected persons There were no other transactions with the Trustees or connected persons during the 8-month period.

15.4 Trustee indemnity insurance

8 months to 31 March 2015 £

Premiums paid by Barts Charity during the reporting period

813

16 Loans or guarantees secured against assets

There were no such loans or guarantees for Barts Charity during the 8-month period.

Connected organisations

There were no connected organisations of Barts Charity during the 8-month period.

Related party transactions

During the 8-month period, neither the Trustees, nor any member of the key management staff or parties related to them, undertook any material transactions with Barts Charity. During the 8-month period, Barts Charity made revenue and capital grants totalling £5.79m and £3.69m to Barts Health NHS Trust and Barts and The London School of Medicine and Dentistry, respectively. Sir Stephen O’Brien is a Trustee and was Chairman of Barts Health NHS Trust until 31 March 2015. Professor Joanne Martin, Director of Academic Health Sciences at Barts Health NHS Trust, is part of a clinical research project to which grant funding was committed in 2011/12, payments for which were made during the 8-month period to 31 March 2015. Professor Martin is the wife of Paul Rawlinson, a Trustee. Paul Rawlinson had no part in the grant decision.

Trustees’ Annual Report 2014/15

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Accounts Supplementary statements for year to 31 March 2015: Background and basis of preparation Background

Supplementary financial statements for year to 31 March 2015

Background and basis of preparation

Auditor’s report

Supplementary statements and notes

Trustees’ Annual Report 2014/15

Barts Charity is a charitable company limited by guarantee, regulated solely by the Charity Commission. Before 31 July 2014, it was known as Barts and The London Charity Trustee and was regulated by both the Charity Commission and the Secretary of State for Health, under the powers set out in the NHS Act 2006. Under an appointment by the NHS Trust Development Authority effective 1 April 2013, it acted as the trustee of the unincorporated charity, Barts and The London Charity. By a Deed of Assignment effective midnight 30 July 2014, Barts and The London Charity Trustee transferred all of the assets which it held in its capacity as trustee (save as set out below) to itself as absolute owner. The Charity Commission approved this assignment in an Order dated 28 July 2014. By a Statutory Instrument dated 31 July 2014 (2014 No. 1905), Barts and The London Charity Trustee ceased to be regulated by the Secretary of State for Health under the provisions of the NHS Act 2006. Barts and The London Charity Trustee also changed its name to Barts Charity with effect from the same date. By virtue of a Charity Commission Order dated 31 July 2014, Barts Charity was appointed as trustee of the permanent endowment assets remaining in Barts and The London Charity and the four Special Purpose Charities related thereto. By a Charity Commission uniting direction dated 31 July 2014, Barts Charity is permitted to account for these trustee assets within its accounts.

Basis of preparation The supplementary financial statements have been prepared to summarise the detail of Barts Charity’s activities for the 12-month period 1 April 2014 to 31 March 2015. As such, they consolidate the 4-month activity of Barts and The London Charity Trustee with the 8-month activity of Barts Charity. The comparatives are those of the 12-month period to 31 March 2014 for Barts and The London Charity Trustee. The accounting convention applied is consistent to that applied to the statutory financial statements in that they have been prepared under the historic cost convention, with the exception of investments and heritage assets, which are included at year-end market value. The financial statements have been prepared in accordance with the Statement of Recommended Practice by Charities (SORP 2005), where deemed appropriate.

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Accounts

Independent auditor’s report to Barts Charity We have audited the non-statutory accounts of Barts Charity (previously Barts and The London Charity Trustee) for the year ended 31 March 2015 set out on pages 44–55. The non-statutory accounts have been prepared for the reasons and on the basis of the accounting policies set out in the background note to the non-statutory accounts. Our report has been prepared for the charitable company solely in connection with the engagement letter dated 12 February 2015. It has been released to the charitable company on the basis that our report shall not be copied, referred to or disclosed, in whole (save for the charitable company’s own internal purposes) or in part, without our prior written consent. Our report was designed to meet the agreed requirements of the charitable company determined by the charitable company’s needs at the time. Our report should not therefore be regarded as suitable to be used or relied on by any party wishing to acquire rights against us other than the charitable company for any purpose or in any context. Any party other than the charitable company who obtains access to our report or a copy and chooses to rely on our report (or any part of it) will do so at its own risk. To the fullest extent permitted by law, KPMG LLP will accept no responsibility or liability in respect of our report to any other party.

Respective responsibilities of Trustees and auditor As explained more fully in the Trustees’ Responsibilities Statement set out on page 25, the Trustees are responsible for the preparation of the non-statutory accounts in accordance with the basis of preparation as set out in the background note to the non-statutory accounts. Our responsibility is to audit, and express an opinion on, the non-statutory accounts in accordance with the terms of our engagement letter dated 12 February 2015 and in accordance with International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board’s Ethical Standards for Auditors.

Fleur Nieboer For and on behalf of KPMG LLP, Statutory Auditor 15 Canada Square London E14 5GL 16 July 2015

Scope of the audit of the non-statutory accounts A description of the scope of an audit of accounts is provided on the Financial Reporting Council’s website at www.frc. org.uk/auditscopeukprivate. In addition, we read all the financial and non-financial information in the Trustees’ Annual Report 2015 to identify material inconsistencies with the audited non-statutory accounts and to identify any information that is apparently materially incorrect based on, or materially inconsistent with, the knowledge acquired by us in the course of performing the audit. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report. Opinion on non-statutory accounts In our opinion the non-statutory accounts of the entity for the year ended 31 March 2015 have been properly prepared, in all material respects, in accordance with the basis of preparation and the accounting policies set out in the background note to the non-statutory accounts.

Trustees’ Annual Report 2014/15

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Supplementary Statement of Financial Activities for the year ended 31 March 2015

2015 Notes Unrestricted Restricted Endowment Total funds funds funds funds £000 £000 £000 £000 Incoming resources Incoming resources from generated funds: Voluntary income: Donations 33 1,039 0 1,072 Legacies 122 953 0 1,075 Grants and other voluntary income 0 498 0 498 Total voluntary income 155 2,490 0 2,645 Investment income 6.3 9,979 623 0 10,602 Total income from generated funds and total incoming resources 10,134 3,113 0 13,247

1,455 1,513 456 3,424 9,139 12,563

Resources expended Costs of generating funds: Voluntary fundraising costs Investment management costs: Financial Property Total cost of generating funds

716

719

625

1,349 201 2,266

0 0 3

0 0 0

1,349 201 2,269

1,418 384 2,427

Charitable activities 1.1 Governance costs Total resources expended

9,500 295 12,061

2,302 0 2,305

0 0 0

11,802 295 14,366

10,047 284 12,758

808 0

(1,119)

(195)

Net incoming/outgoing resources before other recognised gains/(losses) Administrative transfer of Charitable Funds from Whipps Cross Hospital Charity and Newham Hospital Charity 10.1

2014 Total funds £000

(1,927)

2,586

Total net incoming resources for the year Gains/(losses) on revaluation and disposal of own fixed assets Gains/(losses) on revaluation and disposal of investment assets Receipt from prior year property transaction 10.2

(1,927)

808

(1,119)

2,391

2,292

9,944 6,718

144 0

20,697 9,984

30,785 16,702

14,729 0

Net movement in funds Fund balances brought forward at 31 March 2014

14,735

952

30,681

46,368

19,412

81,821

18,796

207,122

307,739

288,327

Fund balances carried forward at 31 March 2015

96,556

19,748

237,803

354,107

307,739

Trustees’ Annual Report 2014/15

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Accounts

Supplementary Balance Sheet as at 31 March 2015 Notes Unrestricted Restricted Endowment funds funds funds £000 £000 £000

2015 Total funds £000

2014 Total funds £000

Fixed assets Intangible and tangible assets 4 Heritage assets 5 Investments 6.1 Total fixed assets

130 0 93,483 93,613

0 0 22,849 22,849

0 14,428 223,375 237,803

130 14,428 339,707 354,265

126 14,428 307,517 322,071

Long-term debtor 7.1 Total long-term assets

0 93,613

0 22,849

0 237,803

0 354,265

4,980 327,051

Current assets Debtors 7.2 Cash at bank and in hand Total current assets

8,268 12,408 20,676

0 0 0

8,268 12,408 20,676

2,788 0 2,788

Creditors: amounts falling due within one year

8.1

(12,538)

(2,665)

(15,203)

(16,314)

Net current assets/(liabilities)

8,138

(2,665)

5,473

(13,526)

Total assets less current liabilities Creditors: amounts falling due after more than one year 8.2

101,751

20,184

237,803

359,738

313,525

(5,195)

(436)

(5,631)

Total net assets

96,556

19,748

237,803

354,107

307,739

9.1

237,803

207,122

9.2

19,748 0 0

0 0 0

19,748 95,581 975

18,796

9.3

0 95,581 975

Total funds

96,556

19,748

237,803

354,107

307,739

Funds of Barts Charity Capital funds: Endowment funds Income funds: Restricted funds Unrestricted funds General funds Designated funds

(5,786)

78,012 3,809

The notes on pages 47–55 form part of these accounts.

Michael Smith Chairman 15 July 2015

Trustees’ Annual Report 2014/15

William Medlicott Trustee

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Supplementary Cash Flow Statement for the year ended 31 March 2015 Notes

2015 £000

2014 £000

(12,786)

(2,484)

Returns on investments and servicing of finance Investment income Net cash inflow from returns on investments and servicing of finance

10,467 10,467

9,698 9,698

(47) (47,417) 46,076 16,702

0 (110,399) 100,426 0

Net cash inflow/(outflow) from capital expenditure and financial investment

15,314

(9,973)

11.2

12,995

(2,759)

Cash outflow from operating activities

Increase/(decrease) in cash and liquid resources

11.1

The notes on pages 47–55 form part of these accounts.

Trustees’ Annual Report 2014/15

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Accounts

Supplementary notes to the accounts Details of 1.1 resources expended – charitable activities by funding source Research Enhancement in service delivery Innovation and training Patient and community engagement Others Reversal of prior years’ grants (a) Total Total for 2014

Grant- Activities funded undertaken activity directly £000 £000

Staff and support costs £000

2015 Total funds £000

2014 Total funds £000

10,366 1,064 491 344 429 (892) 11,802

4,529 4,728 536 305 235 (286) 10,047

9,964 763 32 293 0 (892) 10,160

4 214 380 35 224 0 857

398 87 79 16 205 0 785

8,552

888

607

10,047

(a) Reversal of prior years’ grants reflects underspend across various projects. Although Barts Charity maintains regular contact with grantholders, there are occasions when planned expenditure is not achievable and the related grant accrual is reversed. Direct charitable 1.2 2015 2014 expenditure by Aggregate Aggregate institution amount paid amount paid £000 £000 5,898 3,643 619 10,160

4,672 2,845 1,035 8,552

857 11,017

888 9,440

A detailed list of grants paid to institutions during the year can be obtained on application to Barts Charity’s office at 12 Cock Lane, London EC1A 9BU.

Trustees’ Annual Report 2014/15

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Supplementary notes to the accounts Resources 2 Cost of generating funds expended, Fundraising Investment Property including management management support costs £000 £000 £000

Charitable Governance activity £000 £000

2015 Total £000

2014 Total £000

Direct costs 69 1,255 110 11,016 0 12,450 11,017 Salary costs 439 72 69 638 96 1,314 1,151 Temporary staff 26 0 0 8 1 35 61 Audit fees 0 0 0 0 59 59 68 Insurance 0 0 0 0 33 33 29 Annual Report 0 0 0 0 19 19 18 Professional fees 0 0 0 0 55 55 36 Apportionment of other overheads 185 22 22 140 32 401 378 Total support costs 650 94 91 786 295 1,916 1,741 Total resources expended 719 1,349 201 11,802 295 14,366 12,758 Direct costs 59 1,268 250 9,440 0 11,017 Support costs 566 150 134 607 284 1,741 Total for 2014 625 1,418 384 10,047 284 12,758 Where possible, costs have been directly allocated to one of the above categories. In 2015, 79% of total overheads were allocated in this manner (78% in 2014). The remainder, relating to general office costs, has been allocated on the basis of staff time. Analysis of 3.1 2015 2014 costs staff Total Total £000 £000

Salaries and wages Social security costs Other pension costs Total

1,170 107 72 1,349

1,022 107 83 1,212

Average monthly number of full-time equivalents in the year:

Staff costs include exceptional costs relating to restructuring of £161,000.

Pension 3.2 The following pension contributions were made for employees within the ranges indicated: contributions Value of Number for higher paid contributions of staff employees £000 receiving £ contributions 70,001 to 80,000 80,001 to 90,000 170,001 to 180,000

Trustees’ Annual Report 2014/15

11 11 1

1 1 1

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Accounts

Higher 3.3 paid The following number of employees received emoluments falling within the ranges indicated: employees £ At 31 March 2015 60,000 to 70,000 70,001 to 80,000 80,001 to 90,000 130,001 to 140,000 170,001 to 180,000 Fixed 4 assets Fixed assets: Intangible and tangible Freehold Fixtures, Intangible land and fittings and assets buildings equipment £000 £000 £000 Tangible and intangible fixed assets: Balance at 31 March 2014 Additions Disposal

1 1 1 1 1

Total

£000

351 0 0

120 59 0

471 59 0

Write off 0 (122) Balance at 31 March 2015 0 229 Accumulated depreciation: Balance at 31 March 2014 0 245 Write off 0 (122) Charge for the year 0 44 Balance at 31 March 2015 0 167 Net book value at: 31 March 2015 0 62 31 March 2014 0 106

(69) 110

(191) 339

100 (69) 11 42

345 (191) 55 209

68 20

126

2012 £000

2011 £000

0 0 0

130

2015 Heritage assets 5 £000

2014 £000

2013 £000

Valuation at 1 April 14,428 12,136 12,136 12,136 12,136 Revaluation 0 2,292 0 0 0 Valuation at 31 March 14,428 14,428 12,136 12,136 12,136 2015 £000 Type of heritage asset: Antique furniture 2,165 Paintings, prints and drawings 5,631 Books and manuscripts 2,897 Other 3,735 Total

14,428

Heritage assets are revalued every five years, with the last valuation completed by Gurr Johns, auctioneers and valuers, in March 2014. Painting, prints and drawings include two William Hogarth paintings which have been valued at £1.4m and £1.25m. Other heritage assets include clocks, barometers, works of art, sculptures, ceramics, glass, silver and gold.

Trustees’ Annual Report 2014/15

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Supplementary notes to the accounts Fixed asset investments Property Financial Analysis of 6.1 asset fixed £000 £000 investments

2014 Total £000

Market value at 1 April Less: Disposals at carrying value Add: Acquisitions at cost Net gain/(loss) on revaluation Market value at 31 March

75,937 (11,364 ) 24,365 13,928 102,866

231,149 (33,932 ) 23,164 16,399 236,780

307,086 (45,296) 47,529 30,327 339,646

282,511 (100,309) 110,433 14,451 307,086

0 102,866

61 236,841

61 339,707

431 307,517

Held Held in UK outside UK £000 £000

2015 Total £000

2014 Total £000

102,866 217,272 61 19,508 339,707

75,937 213,145 431 18,004 307,517

Cash held as part of the investment portfolio Total

Market value at 31 March: Investments 6.2

Investment properties Investments listed on stock exchange Cash held as part of the investment portfolio Alternative investments Total

Financial investments held at 31 March 2015 include 14 unit trust funds, representing 92% of the total value, and eight separate alternative investments.

Total gross income Analysis of 6.3 gross income from investments

Analysis of debtors

7.1

102,866 89,253 61 4,499 196,679

0 128,019 0 15,009 143,028

Held Held in UK outside UK £000 £000

2015 Total £000

2014 Total £000

5,021 3,188

0 2,327

5,021 5,515

3,444 5,625

66 8,275

0 2,327

66 10,602

70 9,139

Amounts falling due after more than one year as at 31 March:

2015 £000

2014 £000

Long-term debtors

Investment properties Investments listed on stock exchange Interest on cash held as part of the investment portfolio Total

2015 Total £000

4,980

The FY2013/14 debtor related to the proceeds from property sales (see note 7.2).

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Accounts

Analysis of debtors (continued)

7.2

Amounts falling due within one year as at 31 March:

2015 £000

2014 £000

Trade debtors Prepayments Accrued income Other debtors Total

1,786 135 1,302 5,045 8,268

1,286 71

1,410

21 2,788

Accrued income relates to income on financial investments.

Other debtors includes a receivable of £5.07m due in January 2016, part of proceeds from property sales, which is recognised net of its unamortised discount, £40,000 at 31 March 2015, with related interest income recognised as investment income in the Statement of Financial Activities.

Analysis 8.1 of Amounts falling due within one year as at 31 March: creditors 2015 2014 £000 £000

Overdraft Trade creditors Other creditors Grant accruals Deferred income Total

0 1,387 157 12,583 1,076 15,203

587 1,177 279 13,277 994 16,314

The overdraft is used for short-term cash flow requirements, allowing Barts Charity to be fully invested. Deferred income represents rent billed to the tenants in advance for first quarter of the f ollowing financial year. Prior year deferrals were released in FY2014/15.

8.2 Total creditors falling due after more than one year as at 31 March:

2015 £000

2014 £000

5,631 5,631

5,786 5,786

Grant accruals Total

There are no grants payable whose values require subjective estimation and therefore no provisions have been included in this set of accounts.

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Supplementary notes to the accounts Analysis of 9.1 Endowment funds funds

Balance 31 March 2014 £000

Gains and losses £000

Transfers between funds £000

Expendable endowments 194,481 29,590 0 Permanent endowments: H F Bailey 5,248 453 0 Aylwen Bursaries 1,903 164 0 Edward Hewlett 1,563 135 0 JJ Guthrie Blandford and George Shuter Staff Benefit 1,375 119 0 Hannington 616 53 0 David Hughes 458 39 0 Bailey City and Hackney 193 17 0 Hamblen Thomas 192 17 0 MacCready Mann 189 16 0 11 Funds each under £200k 904 78 0 Total 207,122 30,681 0

Balance 31 March 2015 £000 224,071 5,701 2,067 1,698 1,494 669 497 210 209 205 982 237,803

There were no resources received, expended or transferred in FY2014/15.

Details of material funds Name of fund

Nature and purpose of each fund

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Accounts

Balance Incoming Resources Gains Transfers Balance 9.2 Restricted funds 31 March resources expended and between 31 March 2014 losses funds 2015 £000 £000 £000 £000 £000 £000 Material funds JJ Guthrie Blandford and George Shuter Staff Benefit Margaret Centre Tallerman Research Fund Legacy Children’s Fund Gastroenterology Whipps Cross Irritable Bowel Disease Research Cancer Fund Renal Disease Research Funds £300k–£400k (4) Funds £200k–£300k (5) Funds £100k–£200k (21) Others Total

1,325 1,249

50 53

15 (16)

134 0

993 751 0 0 467 513 1,103 1,789 2,725 7,881 18,796

13 54 1 1 57 7 186 790 406 1,495 3,113

0 (64) 0 0 0 (2) 31 (46) (205) (2,018) (2,305)

0 0 0 0 0 0 0 0 0 10 144

0 0

1,524 1,286

0 1,006 0 741 619 620 563 564 0 524 0 518 0 1,320 (1,182) 1,351 0 2,926 0 7,368 0 19,748

The transfer between funds relates to two substantial legacies which were held in a holding legacy fund until the appropriate Special Purpose Funds were created to receive them. Details of material funds Name of fund Nature and purpose of each fund JJ Guthrie Blandford and George Shuter Staff Benefit Staff benefit Margaret Centre Margaret Centre at Whipps Cross hospital Tallerman Research Fund Legacy Facilitates research into children’s diseases Children’s Fund Treatments of and research into paediatric illnesses Gastroenterology Whipps Cross Gastroenterology department at Whipps Cross Irritable Bowel Disease Research Irritable bowel disease research Cancer Fund General cancer purposes Renal Disease Research Renal research

Trustees’ Annual Report 2014/15

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Supplementary notes to the accounts 9.3 Designated funds Balance Incoming Resources Transfers 31 March resources expended 2014 £000 £000 £000 £000 HF Bailey Newham Community HF Bailey City and Hackney Cardiac fund Sir Alan Parks research fund Funds up to £100k (24) Total

21 15 8 8 60 112

0 0 0 0 (2,708) (2,708)

0 0 0 0 (238) (238)

265 147 118 116 329 975

During the year, a grant of £3.4m was made to Barts Diabetic Kidney Centre, of which £2.45m was expended from one designated fund. Of the transfer between funds, £223,000 represents a decision to utilise designated funds for a grant awarded from unrestricted funds in a prior year. A further £15,000 previously designated was transferred to unrestricted funds during the year.

Details of material funds

Name of fund Nature and purpose of each fund

HF Bailey Newham Community HF Bailey City and Hackney Cardiac fund Sir Alan Parks research fund

244 132 110 108 3,215 3,809

Balance 31 March 2015 £000

Paediatric services provided by Newham CCG East London NHS Foundation Trust Treatment of and research into cardiac disease Treatment of and research related to gastrointestinal tract illnesses

Whipps Cross 10.1 and Newham Hospitals Charitable Funds transfer

An administrative transfer of the charitable assets held by Whipps Cross University Hospital NHS Charity and Newham University Hospital NHS Trust General Charitable Fund was agreed by the Department of Health on 17 June 2013 and effected in October 2013.

Prior year property transaction receipt

The sale of an investment in a freehold interest in land and buildings in the City of London was completed on 1 April 2011 but was subject to further payments. During the year, £16.7m was received in relation to this transaction, of which £12.4m was received on 31 March 2015 (see note 11.2).

10.2

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Accounts

Notes to the 11.1 Reconciliation of cash flows from operating activities to net incoming/(outgoing) resources Cash Flow Statement 2015 £000

2014 £000

(1,119)

2,391

(10,602) 55 (283) (837) (12,786)

(9,139) 57 660 3,547 (2,484 )

Balance Movements 2014 £000 £000

Balance 2015 £000

Net incoming/(outgoing) resources Non-operating cash flows eliminated: Investment income Depreciation charges (Increase)/decrease in debtors Increase/(decrease) in creditors Cash inflow/(outflow) from operating activities

11.2

Analysis of changes in cash and short-term investments and deposits

Cash in hand and at bank Overdraft Change in cash and liquid resources in the year

A receipt of £12.4m, in relation to a prior year property transaction, was received on 31 March 2015. This was subsequently invested in two existing investment funds (see note 10.2).

0 (587) (587)

12,408 587 12,995

12,408 0 12,408

The overdraft is reported as part of creditors falling due within one year.

Trustees’ Annual Report 2014/15

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Trusteesâ&#x20AC;&#x2122; Annual Report 2014/15

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Support Barts Charity There are many ways in which you can help, either as an individual or organisation:

Make a regular donation and become a long-term partner, working closely with our clinicians and scientists

Support a specific project or area through a one-off donation

Introduce us to contacts who could help support our work Select us as your organisation’s charity partner Encourage your employees and colleagues to take part in fundraising activities Organise or take part in a fundraising event Leave a gift in your will

For further information about how you can get involved and support our beneficiaries, contact our fundraising team on 020 7618 1720 or go to www.bartscharity.org.uk.

Photography: Cover: Edward Miller/Medical Realities Ltd, Oliver Trampleasure; inside front cover (lower), p. 7: Oliver Trampleasure; inside front cover (lower): inside front cover (upper): artwork, Morag Myerscough; photography, Gareth Gardner; commissioned by Vital Arts; pp. 2, 3, 4, 5, 6, 8, 9, 12, 13, 14, 16 (centre), 17: Noel Murphy; p. 10: courtesy Dr Chloe Orkin; pp. 10, 11 (lower): courtesy Naz Project London; p. 11 (upper): courtesy Vanessa Apea; p. 15 (upper): artworks, Morag Myerscough, Chris Haughton; photography, Gareth Gardner, Jess Bonham; commissioned by Vital Arts; p. 16 (upper): artwork: Morag Myerscough; photography, Gareth Gardner; commissioned by Vital Arts; p. 16 (lower): from gastroenteritis information film (see p. 7); p. 23: Barts Health NHS Trust; p. 24: designs by Ella Doran; commissioned by Vital Arts. Artists’ images supplied by Vital Arts (www.vitalarts.org.uk). Text and project management: Ian Jones, Jinja Publishing Ltd. Design and production: Fountainhead Creative Consultants.

Barts Charity

Ground Floor, 12 Cock Lane London EC1A 9BU Tel: 020 7618 1717 Fax: 020 7248 9395 Web: www.bartscharity.org.uk Barts Charity is a charity registered in England and Wales, no. 212563, and a company registered in England and Wales, no. 7168381, whose registered office is 12 Cock Lane, London EC1A 9BU.