East Kent Hospitals Charity - Annual Report & Accounts 2012/13 by East Kent Hospitals University NHS Foundation Trust

Annual Report & Accounts Year Ended 31st March 2013 Charity Registration No. 1076555

Contents Chair of Trustees Report

1 2 3

Focus on Fundraising Introduction from the Fundraising Manager

A busy year for our fundraisers

The East Kent Breast Cancer Mammography Appeal

Working in Partnership

How you can help your local hospital

Review of the Year Aims and Objectives

Financial Review Summary

Supporting the NHS in East Kent

Where our income came from

Looking Ahead

Structure, Governance and Management Overview

The Trustees

Structure

Investment Objective

26 28

Other Relevant Organisations

4 5

Our Funds Objects & Funds Structure

Divisional Funds

Financial Statements Statement of Trustees Responsibility

Independent Auditors Report

Statement of Financial Activities

Balance Sheet

Notes to the Financial Statements

37 46

Donation Form

Chair of Trustees Report Welcome to our 2012/13 Annual Report. On behalf of the Trustees of East Kent Hospitals Charity, I am delighted to present the Charity’s annual report and accounts for the year ending 31 March 2013. East Kent Hospitals Charity serves the NHS hospitals, satellite units and community services provided by the East Kent Hospitals University NHS Foundation Trust. Despite an increasingly difficult financial climate in the UK, the Charity has had a successful year enabling a number of significant projects to purchase equipment and undertake improvements to hospital facilities which could not be achieved within the normal limits of NHS funding. All of these projects make an important contribution to the Trust’s aim to provide high quality clinical care and a good experience for the patient. This year saw further purchases with the funds raised by the East Kent Breast Cancer Appeal. The new equipment enables staff to access digital images across the Trust, providing many benefits including quicker diagnoses from clearer images, in turn enabling more accurate treatment plans for patients. The Appeal has raised £988K and has a planned completion date of July 2013. Other significant projects have included the refurbishment of a flat at the William Harvey Hospital for the use of relatives of terminally, or critically ill patients. Such a facility allows the Trust to provide important support for these families at times of great anxiety in a quiet and more peaceful setting than is possible in the busy hospital ward. It is important to recognise that none of this would be possible without the generosity of all of our donors and supporters, including, of course, the hospitals’ Leagues of Friends. We are extremely grateful to everyone who has committed their time and energy to helping us this year. Finally I would like to express my thanks to all the staff, the Charity team and everyone who has worked hard to achieve so much for our hospitals in East Kent.

Nicholas Wells Nicholas Wells Chairman

Focus on Fundraising

Introduction from the Fundraising Manager

There is a tremendous amount of goodwill and support for the wards and services across the hospitals. I have been impressed with the variety and generosity of our fundraisers. If you are thinking about supporting the wards and departments of the East Kent Hospitals University NHS Foundation Trust, there are loads of ways you can help! Your support, no matter how big or small, plays a vital part in supporting the hospitals amazing work. Donations are critical to help fund much needed equipment and facilities and providing a brighter and happier environment for our patients while undergoing treatment. You will see in the following pages examples of the wonderful support that the wards and services across our hospitals have received. So whether you are setting out on an individual challenge, getting together a group of colleagues at work or fundraising at school, I am on-hand to provide you with tips, ideas and information on how to organise and run a successful fundraising event! Many thanks to all our supporters

Rupert Williamson Rupert Williamson Fundraising Manager

A busy year for our fundraisers East Kent Hospitals Charity is hugely grateful to the donors and fundraisers who support the wards and services under the umbrella of the East Kent Hospitals University NHS Foundation Trust. Here are some examples of the fundraising that has taken place this year:

Pots and Pennies The pennies all added up to over ÂŁ250 for the Neonatal Intensive Care Unit at the William Harvey Hospital after the 8th Ashford Beaver Scouts held a very small fundraising challenge! Using a single film container (remember them?) each of the Beavers held a sponsored challenge to see how many different items they could get into the container. The record was 98 items.

Best Foot Forward Emma Bevan and her worn out trainers accompanied her dad to the QEQM Heart Centre to present a foot-shaped cheque for ÂŁ1,250. The money was raised from her superb efforts that included the demanding London Marathon to recognise the care given by the Centre to her dad John.

Skydiving for NICU Dave Dawson reported on his fundraising. “I asked for support in my very big challenge to sky dive from 12000ft and I tell you a little secret I am really really scared of heights but I put myself through this for one very good cause.”

Charity Day at Westgate on Sea A charity event was held at Molly`s Bar, Westgate on Sea, in June to raise money for the Viking Day Cancer Unit. Lorraine Garrod organised the whole day in celebration of the life of her husband Richard.

The charity day included pictures with Peppa Pig, Woody and Tigger; face painting for the children; nail painting; and raffles. It was a complete success - lots of fun was had by all and it raised over £500.

“On January the 13th 2008 my daughter was born very poorly and nearly lost her life but for the quick thinking and acting staff at the Neonatal Intensive s e Care Ca e Unit U who saved my daughters ghters life. With their excellentt round the clock care and love for their job they kept ept my daughter alive and now she is 4 and a real shining light. I want to help so more newborn babies born ill will get the support my little princess got.”

Dave Dawson, who raised £703 for NICU, William Harvey Hospital

Christmas cheer on Padua Padua Ward - the children’s ward at the William Harvey Hospital - is grateful for the generous support it received last Christmas. Ashford Karate Jutsu Kai club raised funds to buy new toys for the ward. They raised the money by holding two self defence classes for adults and juniors.

A Tiny Pledge for a Tiny Life Jason Short has the magic touch when it comes to fundraising. Six years ago his daughter was born. Following a long and difficult birth his daughter was admitted to QEQM Special Care Baby Unit for 7 days. He has always been very grateful for the care given to his wife and daughter and promised to raise funds for the unit when his daughter was older. He embarked on several fundraising events over the year including a quiz night, band night, the London marathon and the main event a ride from John O’Groats to Broadstairs in 8 days (853 miles). His efforts were rewarded with gifts from friends, family and organisations. In total Jason raised a fantastic £32,400 which will be used to purchase a ventilator for the unit.

Cheque Cake! Eleanor Scott presented an edible cheque to the staff of Cambridge J Ward at the William Harvey Hospital. She wanted to say a personal thanks for the care given to her late Granddad. Eleanor organised and directed a talent show and cake stall at her school - Morehall Primary School in Folkestone - on behalf of East Kent Hospitals Charity. The money will be used to purchase extra fans for the patients.

Supporting Important Causes “I raised money for the Ashford Neonatal Unit for East Kent Hospitals Charity because it saved our daughters life. Maddison is now 4 months old and what an emotional 4 months it has been!” Rachel Wolstenholne reported. “Without the special care from the William Harvey Neonatal Unit it is fair to say that she wouldn’t be with us today. We were lucky enough to get a cot for her on the Neonatal Ward and once in the ThermaKid cooling suit, the process began to take her body temperature down to 34.6 degrees so that her brain could recover.” “The staff were amazing, caring and understanding of the emotions we were dealing with and the equipment was the best. We raised money to go towards purchasing more cots and other equipment to help other babies that have problems at the start of their life. You all helped us through a very difficult time with your kind words, thoughts and prayers, and we honestly wouldn’t have got through it without your support.” Rachel Wolstenholne, who raised £1,328.

Appeal Gala Concert

More than £988k has been raised for the East Kent Breast Cancer Mammography Appeal. The Appeal was launched in June 2010 to purchase digital equipment for the Symptomatic Breast Screening Service. The digital machines give a clearer image of the breast and therefore early and small cancers may be seen far more easily. This will enable the Trust to see more women more quickly, so their minds can be put at rest or their treatments started sooner. The appeal will and has already changed women’s lives. The Appeal has been the focus of the major fundraising efforts over the course of 2012/13.

The Appeal concert broke records! An excited audience packed the new Marlowe Theatre in June in aid of the East Kent Breast Cancer Mammography Appeal Charity Gala Concert. Records were broken as this was the largest number of participants to have performed on the stage of the Marlowe Theatre which included 260 children and a Brass Band. The Marlowe stage saw the massed choirs of the Kent College Choristers & Sedecim (winners of Top Choir Kent 2012), Kent College Junior School and Community Choir join with Choirs from Bridge, Challock, Hernhill and Wingham Primary Schools as well as Lorenden Preparatory School conducted by Jackie Spencer from Kent College and the well known local bandmaster Dave Cutting who directed Simon Langton Brass.

Dr Stuart Field, concert organiser said “We were delighted to see so many friends and supporters join the Lord & Lady Mayoress and the Canterbury MP Julian Brazier watch the brilliant young choristers singing on the big stage”. Jean Byers, Chairman of the East Kent Breast Cancer Mammography Appeal said “The audience had a thoroughly enjoyable evening and the parents in the audience can be rightly proud of all the children. What a pleasure it was to see so many young children obviously enjoying themselves, in the magnificent surroundings of the new Marlowe Theatre, given a ‘once in a lifetime’ opportunity, in the presence of parents and supporters to perform in this way.” The concert raised £8,400. The Appeal has also received a fantastic amount of support again this year from an army of volunteer fundraisers. Here are just a few of them:•

Garage Sale Safari by Cliftonville Crafters - raised £500

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Wedfest - donations requested instead of gifts - raised £1,260

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Short Plays by Ashcan Theatre – raised £86

Staff go Appealingly Pink Resourcing went appealingly Pink in support of the Appeal and raised a fabulous £221. Carolyn Apps, Resourcing Manager said, “We had fun! The fundraising will make a difference to the Appeal and it was great doing our bit!” Rupert Williamson, Fundraising Manager said, “We are most grateful for the staff team for their help. We are still pushing for more donations and encourage everyone to keep up their efforts and support.”

Stevie Morgan presenting the big cheque to Jean Byers the Chairman of the Appeal.

Danced for or the Appeal The young dancers from RS Dance in Ramsgate raised valuable funds for the Appeal at Queen Elizabeth the Queen Mother Hospital in Margate. The dance school have put on events in the local area and rallied parents and friends to support them. Stevie Morgan the Dance leader said “We know how vital this equipment is and how it will benefit local people so we are pleased to be able to make this donation of £810.” The Appeal has been supported by many groups and clubs over the last year including • • • • • • •

Whitstable & Seasalter Golf Club British Orthodontic Society Canterbury Womens Probus Club Deal & Betteshanger Rugby Club KWM Paul Marine Officers Club of Dover & Folkestone Friends of Ickham Parish Soroptomists International Canterbury and Ashford Groups

The Resourcing Team with their pink goodies on sale for the Appeal.

“From concerts, cake sales, marathons, cycling events, abseils and skydiving to the filling of matchboxes, the Trustees would like to thank each and every one of our fundraisers for supporting the Appeal. Some of the equipment has already been purchased and is making a difference to the women of East Kent; some has still to be bought. Whatever your event, however much you have raised, you have been helping your hospital and those who need our care.” Jean Byers, Appeal Chairman

Working in Partnership There are many voluntary organisations across the Trust who support our hospitals, including the Leagues of Friends, enabling delivery of improved patient care for both small and large projects. The Trust and the charity are very grateful to all these organisations for their tireless work in support of the individual hospitals. All the Friends are separately registered charities and their individual charity numbers are:• • • • •

The League of Friends of the Dover Hospitals (BHD) Registered Number 288330 The League of Friends of the Kent & Canterbury Hospital (KCH) Registered Number 206925 The League of Friends of the Queen Elizabeth The Queen Mother Hospital (QEQM) Registered Number 210234 The League of Friends of the Royal Victoria Hospital Folkestone (RVH) Registered Number 265095 and The Friends of the William Harvey Hospital (WHH) Registered Number 1122585

The contributions to the Trust from all of the voluntary organisations totalled £372k in this financial year. East Kent Hospitals Charity is working closely with many of these organisations, particularly the Leagues of Friends, to achieve a simplified application process and have a single point of contact in the Trust for everyone. The Leagues are invited to join the Trust Chairman and the Charity Manager and Fundraiser to a forum where ideas, events, successes and issues can be shared and discussed. Examples of jointly funded projects are:• • •

Dr Stuart Field, Chairman of the Kent and Canterbury League of Friends and some of their members, present Jean Byers, Chairman of the East Kent Breast Cancer Appeal with the oversized cheque!

Overbed Tables - KCH and QEQM Leagues with EKH Charity Blood Pressure machines - KCH and RVH Leagues and the Friends of WHH with EKH Charity Weigh Scales - KCH and QEQM Leagues and the Friends of WHH with EKH Charity

In addition to individual projects, tremendous support has been received from the League of Friends for the East Kent Breast Cancer Mammography Appeal. The Kent and Canterbury League of Friends made a further donation of £35k this year to add to their already very generous donations of £233k. The Friends of William Harvey Hospital have given a further donation this year of £22.5k, bringing their contribution to the Appeal to a total of £62.5k. Further publicity on the “East Kent Breast Cancer mammography Appeal” is planned later this year. The Trustees are very appreciative of the work that the various groups and Leagues undertake in support of the Trust and take this opportunity to thank each and every volunteer for their gift of time, energy and fundraising to help our hospitals. 10

How you can Help your Hospitals Fundraising is not just about how much individuals or groups raise, it brings together the community in a common aim from which the people of Kent benefit and promotes the Trust and the work of the Charity. There are many ways in which you can support your local hospital, or say thank you to the staff of a particular ward for caring for your loved ones. From making a donation to organising a fundraising event. A gift ‘In Memory’ can be a positive way to remember a family member. Or you may wish to consider leaving a bequest in your will to support your local hospital. To make a donation you can use the form at the back of this report, or visit our website www.ekhut.nhs.uk/charity and follow the links to donate on line. Text your gift from your phone:- “ekhc01” and the amount in pounds to 70070 e.g. ekhc01 £5 Join our lottery and you could win up to £25k whilst supporting your hospital. Establish your own fundraising event using Just Giving to set up your own web page on www.justgiving.com Whatever your event, the Charity can help you publicise and promote your event and celebrate with you when you have completed your challenge. We hope that you will continue to support the Trust as it seeks to enhance patient care and support staff in delivering a first class service to patients, relatives and visitors. The Trustees and staff appreciate the efforts of all our fundraisers who have made such valuable contributions to the Charity in the last year. If you would like more information on the appeal or would like to join our team of fundraisers, please visit our website:www.ekhut.nhs.uk/charity or contact us on 01227 868748.

Review of the Year

Aims and Objectives The mission of the Charity is to enhance the care and treatment of patients and visitors who use the hospitals, clinics and services provided by the East Kent Hospitals University NHS Foundation Trust.

The Charity’s strategy identified the following objectives:• •

We seek to:• • • • •

Improve levels of patient care and experience Improve environments and facilities for patients and staff Encourage and support innovation in the development of services Support additional training, personal development and welfare of staff Provide financial support for the advancement of scientific and medical research

The Trustees confirm that they have referred to the guidance provided by the Charity Commission with regard to the need for public benefit. They are confident that the activities which contribute to the above mission have a clear public benefit. The Trust provides clinical services within the scope of their NHS requirements and the Charity works hard to enhance these services to benefit the patients and visitors (and therefore the public). Last year the Trustees reviewed the strategic aims of the Charity and the strategies required to achieve these aims. A three year plan was agreed on the 17th February 2012 by the Charitable Funds Committee and ratified by the full Board of Directors on the 30th March 2012.

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To generate a sustainable income year on year Review Investment management to provide advice, competitive rates and achieve an income within set boundaries as a minimum To maximise patient benefit through continually improving the grant making policy, processes and practices and therefore our impact as a charity year on year Ensure the charity has access to the competencies and resources required to achieve our strategic aims Raise the awareness, visual presence and profile of the work of the charity within and outside of the NHS Maintain the highest standards of governance, management and service

In order to achieve these aims and to ensure that funds are expended in accordance with donors’ wishes for the benefit of the public, the Trustees, Directors and Hospital Managers assess the facilities available to patients and staff to determine how the funds can best be deployed. The applications have to indentify how the grant will benefit the public and are assessed on this basis before grants are authorised.

Financial Review Summary The net assets of the Charity as at 31st March 2013 are £4.55m (£4.33m 31st March 2012). During the year resources expended exceeded income by £152k. Gains in the value of investments totalling £372k resulted in an overall increase in net assets of £220k in the year.

Expenditure figure for this year includes:-

The Charity continues to rely on donations, legacies and investment income as its’ main sources of income. Over the past 3 years there has been specific focus on fundraising for the East Kent Breast Cancer Mammography Appeal which has generated significant income. Income from all voluntary donations was £513k, which is £319k less than the previous year when the Appeal received some very significant contributions. Total income from all sources reached £678K which is £317k less than in the previous year.

• •

• • •

Grant for Appeal medical equipment - £214k Grants totalling £139k for other medical equipment (incl. beds) Grants of £58k for projects that improve patient welfare and amenities Grants of £41k for staff training and welfare Grants of £28k for research

Total expenditure for the year was £830k of which £619k was a direct contribution to the Trust. This represents a decrease of £264k on the previous year’s direct support of £883k. The Appeal purchased equipment to the value of £373k in the previous year and £214k in this financial year, accounting for £159k of the difference in expenditure.

Supporting the NHS in East Kent Funding Modern Medical Equipment – Total spend £353k

Transonic Monitoring Machine – Renal Unit KCH; £25k

In order to provide high levels of care to patients it is vital to have the latest and most modern equipment. The Charity has invested £353k into new medical equipment this year. A few examples of what we have purchased and how this benefits the patients are given here.

The transonic machine has prompted many fistulogram procedures which detect a variety of problems with a fistula or graft. By initially detecting these problems with a transonic machine, it allows for early referral and prevents further radiological or surgical procedures.

Fluroscan for Trauma and Orthopaedics QEQM; £43k

Contrast Agent Injector – Radiotherapy KCH; £19k

This mini Image Intensifier is easier to position than the larger less mobile equipment. Surgeons are trained to use this equipment which reduces the waiting time for availability of a radiologist. There is reduced radiation and allows greater control by the surgeon giving a tighter, clearer image. Treatment is delivered quicker with more accuracy.

The use of IV contrast for the radiotherapy planning CT scan allows the clinicians to clearly visualise blood vessels on the scan. This allows greater accuracy when delineating target volumes and can reduce the volume of normal tissue irradiated. This can help reduce the toxicity to the patient alleviating side effects. The sparing of vital structures allowed by the new technology has the potential of increasing cure rates.

Two Faxitron Specimen Cabinets; £113k As part of the East Kent Breast Cancer Mammography Appeal, a further addition to the equipment already purchased has been made. These machines, which are located at the Kent and Canterbury hospital, allow the biopsies and images to be used during surgery to allow the surgeons to target the affected tissue with more accuracy and clarity. This prevents patients having to return to the hospital for further treatment and less discomfort from additional biopsies.

Patient welfare and amenities – Total spend £58k

Staff development and welfare – Total spend £41k

The aim of the Charity is to improve the patient experience and welfare alongside the clinical aspects of their care. To this end the Charity has invested £58k to improve the environment and facilities available to them and their families and loved ones.

It is important to recognise that, without the staff who work tirelessly to bring world-class patient care and treatment to the NHS in East Kent, none of this would be possible. The Trustees invested £41K in staff training, development and projects to improve staff wellbeing and the environment in which they work.

The major project this year, costing £33k, was the refurbishment of a flat at the William Harvey hospital for the use of relatives of terminally and critically ill patients. A similar project, funded by the Charity was completed at the Queen Elizabeth the Queen Mother Hospital in Margate in 2010. The Palliative Care Nurses, alongside the Critical Care Unit staff, started work to provide a facility in Ashford. The facility provides a sanctuary away from the hectic ward environment at a time of deep distress. The opening was attended by the Hodges family who experienced a life-changing event when they were not expecting their daughter, Nicola, to pull through ITU care. They donated £600 pounds to support the cause as they appreciated how much this facility would mean to relatives who may unfortunately find themselves in a similar situation as theirs. Nicola is pictured at the opening with Trust Chairman Nick Wells, mum Angela and dad Nick, Consultant Nurse Sue Cook and ITU Matron Jane Kirk-Smith. The local community got involved with the project and provided a number of paintings done by the students at Kent College which have helped decorate the rooms and a magnificent sculpture of an owl for the garden area. Sue is already working on identifying a suitable location for a facility at Kent and Canterbury Hospital.

Medical Research – Total spend £28k The Charity seeks to encourage and provide financial support for research which has the potential to impact on the treatment and well being of patients. Through the funding of medical research we are seeking to find new ways to prevent or treat complicated medical conditions or life-threatening illnesses. The Charity is working closely with the Trusts’ Research and Development team to identify suitable grants to achieve this. A grant of £16.5k was given to support research into the Risk Benefit of Angiotensin-Converting Enzyme Inhibitor (ACEi)/Angiotensin Receptor Blocker (ARB) Therapy in Cardiovascular and Renal Disease. This research will look at benefits of using or not using these agents in primary care and the associated risks. It is hoped that the data obtained through this project will support clinical decisions regarding treatment of patients with cardiovascular and acute kidney disease in East Kent. Projects are approved by the Research Ethics Group where applicable. The Charity continues to support smaller projects and posters for presentation at conferences and symposiums to aid developments in treatments.

the INSIDE Story Almost 100 staff learned how to manage anxious children before surgery at a Great Ormond Street course held at Kent and Canterbury Hospital. Calming children who are showing symptoms of anxiety before their operation does more than give them a better experience of hospital - it is critically important in reducing pain perception, post-operative analgesia, prolonged recovery time and dysfunctional behaviour. Almost 4000 children a year undergo surgery at EKHUFT. In November, almost 100 of the staff who care for them took part in the renowned POEMS course provided by Great Ormond Street to learn Photo: Dr Gustav Strandvik, Dr Matthew Gardner, Dr Rich Martin, Dr Agnes Fong and Dr Shola Ninan. techniques for detecting, reducing and preventing anxiety in children receiving medical care. The charity paid just over £5,200 for the day which averaged around £50 per person for this specialist training which would normally cost around £200 per person if delivered at Great Ormond Street. The course, organised by Consultant Anaesthetist Dr Gustav Strandvik was eye-opening and practical, potentially improving the outlook for thousands of children in east Kent. “It was great to have such a fantastic turnout from all the sites and different disciplines,” said Dr Strandvik. “It will make a big difference to many children.”

Children, surgery and anxiety • •

•

Between 50 and 75% of children having surgery experience anxiety in the anaesthetic room Between 24 and 60% of children will display dysfunctional behaviour, such as eating disorders, problems sleeping, nightmares, temper tantrums, bed-wetting and problems with authority, within the 3 weeks following surgery. Between 4 and 12% of children continue to display these patterns of behaviour one full year following surgery. 17

Where our income came from

Significant single donations were received from: •

The graph below shows an analysis of income sources for April 2010 – March 2013.

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Income Comparison 2010/11-2012/13

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Fundraising Activities/Appeal

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Legacies

Donations/grants 2012/13 2011/12

Investment Income

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2010/11

Properties

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£50k WRVS for Queen Elizabeth the Queen Mother Hospital £35k League of Friends Kent & Canterbury for Breast Cancer Appeal £25k East Kent Unit for Breast Screening for the Breast Cancer Appeal £30k Anonymous donor for the Breast Cancer Appeal £22.5k Friends of William Harvey Hospital for Breast Cancer Appeal St Saviours Medical Charity £50k for the Appeal

Other

100

200

300

400

500

600

£000's

The total income received from all sources was £678k. A total of £409k was received from donations and £104k from legacies. General donations have increased from the previous year by 40% which is encouraging. The Charity has benefited from some significant donations, but not in the same volumes as last year. The past year has been challenging and overall donations have declined by 33% from the previous year. However a reduction was anticipated due to the East Kent Breast Cancer Mammography Appeal drawing to its conclusion having achieved all its identified expenditure.

Legacies have provided an income of £104k this year. The most significant being for the following purposes:• • •

£85k From the estate of Harry Hirst for Kent & Canterbury Hospital £8k From the estate of Edith Wheeler for Buckland Hospital £5k From the estate of William Redding for Cancer Research

Investments Despite the continuing market tensions, the income received from the Alpha Common Investment Fund for Endowments has continued to provide an important cash source and has achieved a net income of ÂŁ87k (ÂŁ90k in 2011/12). The cash generated from fundraising activities for the Major Appeal have been maintained separately from other cash balances. The main event for the year was a concert held in the Marlowe Theatre in Canterbury achieving a net income of ÂŁ8k. The Charity holds three properties as an additional investment and currently rents these through a letting agent, to generate an income. Repairs and maintenance have been undertaken where required and all three properties have remained occupied throughout the year. The Trustees have agreed to keep the properties for at least a further year when market conditions will be reviewed to identify any benefit in selling.

Looking Ahead The future holds many challenges for the NHS in East Kent and for our Charity. The Trustees are however committed to strengthening the long term viability of the Charity and working in partnership with the Trust to achieve their aim of delivering a first class healthcare service for the people in East Kent. A programme of support has been developed within a new Strategy to take the Charity into the next three years to contribute to the evolving needs of the Trust, providing up to the minute technology, specialist centres and training. The Charity will continue to forge new links with the University of Kent to provide support for research to improve the delivery of healthcare in the future. The aim of the Trustees is to work with the Fundraiser to develop the charity into a major contributor to the future of the Trust. It is a very exciting and challenging time for the charity and all its supporters, to re-shape the future of healthcare in East Kent.

Structure, Governance and Management

Overview The East Kent Hospitals Charity is an independent registered charity, (registered number 1076555) which exists to raise and receive donations for any charitable purpose relating to the National Health Service wholly or mainly for the services provided by the East Kent Hospitals University NHS Foundation Trust. The Charity was established in April 1999 by Declaration of Trust Deed as East Kent Hospitals NHS Trust Charitable Fund and amended by Trustee resolutions and supplemental deeds to incorporate name and structure changes.

The Charity has one small Endowment fund, which allows only the net income to be spent, whilst the capital remains invested. The remaining funds are Unrestricted or Designated Funds created for donations received for use by hospitals, wards and departments to reflect donors’ wishes. These do not form a binding trust. The major funds within these categories are disclosed in Note 8 in the accounts. The total value of funds held at 31st March 2013 was £4.55m.

The Charity encompasses the funds given to wards, departments and services provided at the following hospitals:• • • • •

William Harvey Hospital (WHH), Ashford Queen Elizabeth the Queen Mother Hospital (QEQM), Margate Kent & Canterbury Hospital (KCH), Canterbury Buckland Hospital (BHD), Dover Royal Victoria Hospital (RVH), Folkestone

At the balance sheet date, 31st March 2013, there were a total of 47 individual funds established under this Umbrella registration. Of those funds 21 are restricted, or special purpose funds, and some of these are registered under the Umbrella as subsidiary charities governed by separate objects within the Charities Commission guidelines for fund expenditure.

The Umbrella registration allows for a single set of consolidated accounts for all the subsidiary charities and funds held under the umbrella. However, separate accounts for each fund are maintained to enable identification of transactions and balances. The principal office of the Charity is:East Kent Hospitals University NHS Foundation Trust 2nd Floor Trust Offices Kent and Canterbury Hospital Ethelbert Road Canterbury, Kent CT1 3NG Telephone: 01227 866356 Fax: 01227 866377

The Trustees East Kent Hospitals University NHS Foundation Trust (the Trust) is the Corporate Trustee, empowered by the NHS Act 2006. The Board of Directors effectively adopts the role of Trustee as defined by the Charity Commission. Individual members of the Board are not trustees under Charity Law, but act as agents on behalf of the Corporate Trustee. The Council of Governors is responsible for the appointment of the Chairman and Non Executive Directors (NEDs) and approving the appointment of the Chief Executive. The council of Governors are elected and appointed to post. For further details visit www.ekhuft.nhs.uk New appointees are given an induction which provides information regarding the Trust and their responsibilities within their role.

The following Trust Directors are members of the Charitable Funds Committee:Nick Wells Trust Chairman Stuart Bain Chief Executive Jeff Buggle Director of Finance & Performance Management Christopher Corrigan Non Executive Director Neil Martin Medical Director & Deputy Chief Executive Liz Shutler Director of Strategic Development & Capital Planning Richard Suthers (Chair of Charitable Funds Committee from February 2012 left February 2013) Non Executive Director

None of the Trustees have received any remuneration or reimbursement of expenses from the Charity in this financial year, or the previous year, whilst undertaking their responsibilities for the Charity.

Structure Administrative Structure

Administrative Staff

Acting for the Corporate Trustee, the Charitable Funds Committee (CFC) was established as a separate committee in August 2008 to provide a dedicated team to manage the affairs of the Charity independently from the business of the Trust, whilst still linking closely with its strategy and planning. It is responsible for the management of the Charitable Fund under the Terms of Reference which are reviewed annually and updated where required to meet the changing needs of the Charity. The CFC meets routinely quarterly with additional meetings held if required.

The Charity does not directly employ any staff but reimburses the Trust for the staff and services provided by the Trust. Key members of staff who administer the needs of the Charity are:•

• All new members of the Charitable Funds Committee attend an induction course for Charity Trustees within 6 months of appointment and delegated signatories are provided with guidelines and information regarding the Charity to ensure they understand their responsibilities. The CFC review the reports on the performance of the investment portfolio supplied by the appointed brokers and consider financial matters relating to realisation of investments to release cash, grant expenditure, policies and any other business of the Charity. The proceedings and recommendations of the CFC are recorded and taken to the next available Board of Directors meeting for ratification. Any items for which Board approval is not given will be discussed at the next CFC meeting.

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Charitable Funds Manager - reporting to Director of Finance and Performance Management and they are responsible for the day-to-day administration of the charity, providing financial reports, maintaining governing documents, policies and procedures and producing the Annual Report and Accounts. Charitable Funds Assistant - provides day-today support to the Charitable Funds Manager processing and managing applications and financial functions Fundraising Manager - reports to the Director of Strategic Development and manages all fundraising events, database, volunteers, publicity and marketing for the Charity. Fundraising Support Officer - provides administrative support to the Fundraising Manager

In addition to the charges for the above staff, the Charity agrees an annual charge for the use of the Trust systems, facilities, internal audit and payment and procurement services. This is charged monthly and is apportioned across all funds on an average balance basis.

Grant making policy

Investment Powers

The Charity makes grants from its unrestriced and restricted funds. A Scheme of Delegation is maintained for the authorisation of grants and signatories are approved by the appropriate Finance Lead. Divisional Directors, senior medical staff and department managers are appointed as fundmanagers under this scheme. These staff are made aware of the Trust’s Standing Financial Instrustions and Orders which are also applicable to the Charitable Funds. All signatories receive a monthly financial statement of all the charity’s funds.

The investment powers of the charitable fund are stated in the Declaration of Trust registered with the Charity Commission, which provides for the following:

Risk statement

a. shall exercise such power with the care that a prudent person of business would in making investments for a person for whom he felt morally obliged to provide; b. shall not make any speculative or hazardous investment (and, for the avoidance of doubt, this power to invest does not extend to the laying out of money on the acquisition of futures and traded options); c. shall not have power under this clause to engage in trading ventures; and d. shall have regard to the need for diversification of investments in the circumstances of the Charity and to the suitability of proposed investments.’’

During the year the Trustees continued to review the major risks to which the Charity is exposed. It has been agreed that an updated register will be approved by the CFC on an annual basis. Given the financial controls and procedures in place, the significant areas of risk for the Charity have been identified as those associated with investments which are subject to external market influences. These could result in reduction in capital values, dividends and loss of rental income from properties.

‘‘to invest the trust fund and any part thereof in the purchase of or at interest upon the security of such stocks, funds, securities or other investments of whatsoever nature and where so ever situate as the trustees in their discretion think fit but so that the trustees:

In all areas of risk the level of controls have been assessed and enhanced as far as possible. In the Trustees opinion all appropriate action has been taken to ensure the risks are mitigated.

Investment Objective The investment objective is to seek to maximise the total return from the fund consistent with a relatively low degree of risk. Trustees have directed the investment managers that no investments should be made in the shares of tobacco-producing companies and will also avoid investment in companies that have more than 10% of their turnover from the following:• • • •

Alcohol Manufacture Armaments Gambling Pornography

The ethical restrictions are not considered to be so restrictive as to be likely to impact on long term performance. After a tender process Cazenove Capital Management Limited were awarded a four year contract to manage the capital investments for the charity in January 2013 (with an option to extend for a further year). The approach is to remain with a pooled portfolio with relatively low risk, ethical restrictions and an expectation of returns achieving £80K-£100K per annum. The transfer of funds from Sarasin and Partners Limited Liability Partnership took some time to achieve to avoid a total sale process which could have been detrimental to the Charity holdings and would have incurred a period out of the market. The transfer was achieved prior to the end of the financial year but Cazenove retained the holdings in the Alpha CIF until the end of March to benefit from the dividend payout. The current asset portfolio allocation at 31st March 2013 is shown in the following graph.

Asset Allocation 2012/13 7%

4% 31%

12%

UK Equities Global Equities Fixed Interest Property Liquid Assets

41%

Alternative Assets

Investment Performance Performance of the Alpha portfolio held with Sarasin and Partners Limited Liability Partnership was monitored and reviewed on a quarterly basis by the CFC to ensure the Investment Managers met the targets and management criteria set by the Trustees. The total value of the investment portfolio at transfer was £2.94m and throughout the year the performance of the portfolio broadly equalled or exceeded the various benchmarks. Gross income from investments has increased from that achieved in the previous year, and the capital has shown growth over the last year to recover the full book value and a slight profit. There is an annual review of the investment policy to ensure that returns are maximised at medium to low risk. Unless the donor has expressed a specific request regarding investment, the investment of funds is in accordance with the Trustees Investment Act 1961.

The investment managers are required to meet with the Trustees at regular intervals, but at least once in any one financial year, to explain any deviation from the anticipated rate of return in order that investment opportunities can be maximised. Investment managers are asked to explain exceptional losses and proposed recovery plans.

Reserves Policy The Trustees recognise their obligation to ensure that income received by the Charity should be spent effectively and promptly in accordance with the funds’ objects. It is however considered prudent that a minimum reserve of between £200k and £250k should be held to cover contingencies, particularly stock market fluctuations. This sum has been identified as being equal to one year’s operational costs and outstanding commitments. Charity Reserves as defined under SORP 2005 (GL51) are those funds which become available to the charity to be spent at the Trustees’ discretion in furtherance of the charity’s objectives, excluding funds which are spent or committed or could only be realised through the disposal of fixed assets. These are therefore classified as ‘free’.

The Trustees have reviewed and revised their Reserves Policy and have determined that it is necessary to retain reserves over the longer term to:•

• •

•

Reduce the impact of risks from the external environment should the levels of income reduce significantly Continue their programme of support to the Trust. Hold sufficient reserves to ensure the charity can cover its ongoing operational costs to process outstanding commitments. Meet the cost of closure or transfer of the charity’s affairs should the need ever arise

At the 31st March 2013 the reserves were identified as per the table below:-

Breakdown of Reserves Total Unrestricted funds Less property funds Less Major Appeal fund Freely available reserves

£000,’s 1,790 (693) (264) 833

The current level of reserves exceeds the minimum requirement set in the policy with an additional £633k being held without firm commitment projects. The Trustees will continue to encourage the Divisions to identify large capital projects to support their areas of expertise and to develop projects to benefit the patient experience.

Definition of funds:Restricted Funds - funds which are subject to specific trusts e.g. terms of will Endowment Funds - funds which are to be held as capital and only the income generated can be expended. Unrestricted Funds - funds which are expendable at the discretion of the Trustees, or designated in consideration of donors wishes.

Other Relevant Organisations Investment Managers

Legal Advisors

Cazenove Capital Management Limited Juxon House 12 Moorgate London EC2R 6DA

Brachers Solicitors Somerfield House 59 London Road Maidstone Kent ME16 8JH

Bankers Lloyds Banking Group 2 City Place Beehive Ring Road Gatwick RH6 0PA

Agents Cooke & Co Letting Agents 147 Northdown Rd Cliftonville, Margate Kent CT9 2QY

Beachcroft Wansboroughs 100 Fetter Lane London EC4 1BN Hempsons Solicitors Hempsons House 40 Villiers Street London WC2N 6NJ

Auditor KPMG Limited Liability Partnership 15 Canada Square London E14 5GL

Valuations (property owned by the Charity) Damien Cook Msc MNAEA Cooke & Co Letting & Estate Agents 147 Northdown Road Cliftonville Kent CT9 2QY

Our Funds

Objects & Fund Structure Objects Under the terms of the governing document, the Trustees can use the unrestricted funds to â&#x20AC;&#x2DC;hold the trust fund upon trust to apply the income, and at their discretion, so far as may be permissible, the capital, for any charitable purpose relating to the National Health Serviceâ&#x20AC;&#x2122;. The restricted funds have individual specified purposes that govern their use, in conjunction with the objects of the umbrella Charity. Some of these are registered with the Charity Commission as subsidiary charities of the Umbrella Charity. See Note 8.3 page 44.

The Trustees periodically review balances held in designated funds to determine whether these funds are likely to be committed in the near future and the extent to which there is a continuing need identified for any particular fund(s). In the event that the need no longer exists, those funds will be redirected to the appropriate Service (Divisional) General Fund. Further rationalisation is undertaken for individual funds that are not considered financially viable, or have the same objective as another fund. These funds will also be redirected to General Purposes or amalgamated with a similar fund. The dissolution of special purpose funds is managed under Clause I in the governing documents, without the need for referral to the Charity Commission.

Fund Structure Where a donation is received under a legally binding trust, for example under the terms of a will, the funds are classified as restricted. Where the restriction is removed, either by the spending of original funds, or where no binding agreement is held, funds are re-classified as unrestricted and placed into general purpose funds or a fund that achieves the donorâ&#x20AC;&#x2122;s wishes.

A continuing programme of rationalisation of funds is maintained to support the objectives of the Charity. Where funds have been received without forming a binding Trust they are designated to the appropriate Divisional Fund which is responsible for delivering the service and are classified as unrestricted.

Divisional Funds The following funds are held as general purpose funds for the wards and services managed under the clinical division and are classified as unrestricted.

Urgent Care and Long Term Conditions - incorporates the following specialties:• • • • • • • • • •

Health Care of Older People Diabetes Rheumatology General Medicine A&E Neurological Services Cardiology Stroke Gastroenterology Respiratory

Surgical Services - incorporates the following specialties:• • • • • • • •

Specialist Services - incorporates the following specialties:• • • • • • •

Cancer and Oncology Haemophilia Clinical Haematology Renal Dermatology Womens Services Childrens Services

Clinical Support Services incorporates the following specialties:• • • • •

Laboratory Medicine Pharmacy Radiology Therapies Outpatients

Anaesthetics Critical Care Pain Services General Surgery Urology Head and Neck Trauma and Orthopaedics Vascular and Interventional Radiology

Financial Statements

Statement of Trustees Responsibility The following pages show the financial accounts for the year ended 31st March 2013.

Statement of Trustees’ responsibilities in respect of the Trustees’ annual report and the financial statements Under charity law, the trustees are responsible for preparing the Trustees’ Annual Report and the financial statements for each financial year which show a true and fair view of the state of affairs of the Charity and of the financial position at the end of the year. In preparing these financial statements, generally accepted accounting practice entails that the trustees:• • •

•

select suitable accounting policies and then apply them consistently; make judgments and estimates that are reasonable and prudent; state whether the recommendations of the Statement of Recommended Practice have been followed, subject to any material departures disclosed and explained in the financial statements; state whether the financial statements comply with the trust deed, subject to any material departures disclosed and explained in the financial statements; prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue its activities.

The trustees are required to act in accordance with the trust deed of the charity, within the framework of trust law. They are responsible for keeping proper accounting records, sufficient to disclose at any time, with reasonable accuracy, the financial position of the charity at that time, and to enable the trustees to ensure that, where any statements of accounts are prepared by them under section 132(1) of the Charities Act 2011, those statements of accounts comply with the requirements of regulations under that provision. They have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the charity and to prevent and detect fraud and other irregularities. As far as the trustees are aware, there is no relevant audit information of which the charity’s auditors are unaware and the trustees confirm that they have met the responsibilities set out above and complied with the requirements for preparing the accounts. The financial statements set out on pages 35 - 36 attached have been compiled from and are in accordance with the financial records maintained by the trustees. By Order of the Trustees Signed: Chairman: ........................................ ..... . ................ .... .... .. . ................ 5th September 2013 Date: ........................................

Trustee: ........................................ 5th September 2013 Date: ........................................

Independent Auditor’s Report We have audited the financial statements of East Kent Hospitals Charity for the year ended 31st March 2013. 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 charity’s trustees as a body, in accordance with section 144 of the Charities Act 2011 (or its predecessors) and regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the charity’s trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and its trustees 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 23 the trustees are responsible for the preparation of financial statements which give a true and fair view. We have been appointed as auditor under section 144 of the Charities Act 2011 (or its predecessors) and report in accordance with regulations made under section 154 of that Act. Our responsibility is to audit, and express an opinion on, the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland).

Those standards require us to comply with the Auditing Practices Board’s (APB’s) Ethical Standards for Auditors.

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 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 charity’s affairs as at 31st March 2013 and of its incoming resources and application of resources for the year then ended; have been properly prepared in accordance with UK Generally Accepted Accounting Practice; and have been properly prepared in accordance with the requirements of the Charities Act 2011.

Matters on which we are required to report by exception We have nothing to report in respect of the following matters where the Charities Act 2011 requires us to report to you if, in our opinion: • the information given in the Trustees’ Annual Report is inconsistent in any material respect with the financial statements; or • the charity has not kept sufficient accounting records; or • the financial statements are not in agreement with the accounting records and returns; or • we have not received all the information and explanations we require for our audit.

Philip Johnstone for and on behalf of KPMG LLP, Statutory Auditor 15 Canada Square London E14 5GL

Statement of Financial Activities Statement of Financial Activities for the year ended 31 March 2013

Incoming resources(CCSOFA) Donations Legacies Total Donations and Legacies

Activities for generating funds Investment income Other incoming resources

Total incoming resources Resources expended Costs of generating funds

Note Unrestricted Restricted Endowment Funds Funds Funds 2 £000 £000 £000 324 85 0 2 102 0 326 187 0 17 0 0 51 87 1 0 9 0 394 283 1 3 3.1

2012/13 2011/12 Total Total Funds Funds £000 409 104 513 17 139 9 678

£000 615 217 832 22 134 7 995

109

110

281 22 346

338 79 483

0 1 1

619 102 830

883 104 1,097

48 (14) 34

(200) 14 (186)

0 0 0

(152) 0 (152)

(102) 0 (102)

132 166

238 52

2 2

372 220

(132) (234)

1,624

2,687

4,333

4,567

1,790

2,739

4,553

4,333

Charitable Activities

Activities in furtherance of charity's objectives Governance and administration

3.2 3.3

Total resources expended Net inc/(outgoing) resources before Transfers Gross transfer between funds

Net incoming/(outgoing) resources Gains/(losses) on revaluation and acquisition Net movement in funds Fund balances brought forward at 31 March 2012 Fund balances carried forward at 31 March 2013

5 4

The notes at pages 37 to 45 form part of these financial statements.

Balance Sheet

Balance Sheet as at 31 March 2013 Notes

Unrestricted Funds £000

Restricted Endowment Total at 31 Total at 31 Funds Funds March 2013 March 2012 £000 £000 £000 £000

5 5

722 693 1,415

2,198 0 2,198

20 0 20

2,940 693 3,633

2,644 631 3,275

0 425 425

85 490 575

0 4 4

85 919 1,004

35 1,140 1,175

(60)

(34)

(94)

(127)

365

541

910

1,048

1,790

2,739

4,553

4,333

Fixed Assets Investments - CIF Properties

Total Fixed Assets Debtors due over one year Current Assets Debtors due within one year Cash at bank and in hand

Total Current Assets Creditors: Amounts falling due within one year

Net Current Assets/(Liabilities) Total Net Assets Funds of the Charity

Capital Funds: Endowment Funds Income Funds: Restricted Unrestricted

1,790

2,739 -

2,739 1,790

2,687 1,624

Total Funds

1,790

2,739

4,553

4,333

The notes at pages 37 to 45 form part of this account. Signed:

Date: 5th September 2013

Notes to the Financial Statements Principal accounting policies 1.1 Accounting Convention The financial statements have been prepared in accordance with applicable Accounting Standards in the United Kingdom and the Statement of Recommended Practice (SORP) “Accounting and Reporting by Charities” published in March 2005 and the Charities Act 2011. A summary of the principal accounting policies, which have been applied consistently, are set out below.

Basis of preparation The financial statements are prepared in accordance with the historical cost convention, except for Investments, which are included at market value. During the year, the Charity reviewed its accounting policies and made no changes.

Incoming resources from Capital Endowments are placed into an income fund when received. Income will be placed into funds in accordance with donors’ wishes, but without forming a binding trust, unless a signed document is received and approved by Trustees. Gifts in kind are valued at a reasonable estimate of their value to the Charity. Gifts donated for resale are included as income when they are sold.

Intangible Income Intangible income, which comprises donated services or use of Trust property, is included in income at a valuation which is an estimate of the financial cost borne by the donor where such a cost is material, quantifiable and measurable. No income is recognised when there is no financial cost borne by a third party.

1.2 Incoming Resources Donations, grants, legacies and gifts in kind Donations and grants are credited to revenue on a receivable basis. It is not the Charity’s policy to defer income even where a pre-condition for use is imposed. Legacies are accounted for either upon receipt or where confirmation has been received from the personal representatives of the estate that payment of the legacy will be made or property transferred when all conditions attached to the legacy have been fulfilled.

1.3 Resources expended

1.4 Structure of funds

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. All expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party. Overheads have been allocated pro rata to the value of the individual funds on a monthly basis.

Unrestricted funds are general funds, which are available for use at the discretion of the Trustees in furtherance of the objectives of the Charity. Funds which are not legally restricted but which the Trustees have chosen to earmark for set purposes are designated funds.

Costs of generating funds The costs of generating funds are the costs associated with generating income for the funds held on trust. This will include the costs associated with Investment Managers, administration costs for management of investment properties and other promotional and fundraising events including any trading activities.

Where there is a legal restriction or a binding agreement with a donor, on the purpose to which a fund may be put, the fund is classified in the accounts as a restricted fund. Funds where the capital is held to generate income for charitable purposes and cannot itself be spent are accounted for as endowment funds. The major funds held within these categories are disclosed in note 8.

Charitable Activities Expenditures are given as grants made to third parties (including NHS bodies) in furtherance of the charitable objectives of the funds. They are accounted for on an accruals basis, in full, as liabilities of the Charity when approved by the Trustees and accepted by the beneficiaries.

Transfers between funds are made at the discretion of the Trustees, taking account of any restrictions imposed by the donor. Please refer to the Fund Structure on page 30 within the Trustees report.

1.5 Fixed Assets Investments Fixed Assets

Governance and administration These are accounted for on an accruals basis and are recharges of appropriate proportions of the staff costs and overheads from East Kent Hospitals University NHS Foundation Trust. These are calculated on an average fund balance of the individual funds and allocated on a monthly basis. Governance costs include audit fees.

Recognition of liabilities Liabilities are recognised as and when an obligation arises to transfer economic benefits as a result of past transactions or events.

Investments held by the Trusteesâ&#x20AC;&#x2122; investment advisers are included at closing market value at the balance sheet date. Any realised and unrealised gains and losses on revaluation or disposal are combined in the Statement of Financial Activities.

Investment properties Property assets are not depreciated but are shown at market value. Valuations are carried out annually by an appropriate professional. Valuation gains and losses are recorded in the Statement of Financial Activities with the balance sheet reflecting the market value at 31st March 2013.

Income and expenditure in respect of investment properties are reflected in the appropriate category in the Statement of Financial Activities. See note 3.1.

1.6 Realised gains and losses Realised gains and losses on investments are calculated as the difference between sales proceeds and opening market value (or date of purchase if later). Unrealised gains and losses are calculated as the difference between market value at the year end and opening market value (or date of purchase if later). Investment income and gains/losses are allocated quarterly and monthly respectively according to the average fund balance, to the appropriate fund and included within the Statement of Financial Activities.

1.7 Cash flow The Charitable Fund qualifies as a small entity and as a consequence, it is exempt from the requirement to publish a cash flow statement under Financial Reporting standard 1 (revised) Cash Flow Statements.

1.8 Prior Year Adjustments There has been no change to the accounts of the prior years.

1.9 Pensions The Charity has no employees.

2 Incoming Resources 2 Incoming Resources

Voluntary Income

Unrestricted Funds £000

Restricted Endowment Funds Funds £000 £000

Donations Legacies

324 2

85 102

0 0

Total Donations and Legacies

326

187

2012/13 Total Funds £000

2011/12 Total Funds £000

409 104 513

615 217

832

17 17

22 103 0 6 24 1 134

Operating Activities Activities for generating funds-events

Dividends from investment portfolio Interest from investment portfolio Bank Interest Rent from Investment properties Interest from Loan

23 0 2 26 0

83 0 4 0 0

1 0 0 0 0

Total Investment income

107 0 6 26 0 139

0 0

9 9

0 0

9 9

7 7

394

283

678

995

Investment income

Other incoming resources-Staff Ball Tickets

Total Other income Total incoming resources

3 Resources Expended

3.1 Cost of generating funds

Unrestricted Restricted Funds Funds £000 £000

Endowment Funds £000

2012/13 Total Funds £000

2011/12 Total Funds £000

Fundraising events - insurance Fundraising events Fundraising - Just Giving Fundraising - Marketing and promotional material Fundraiser and support - Salaries

0 7 2 0 24

2 4 1 3 40

0 0 0 0 0

2 11 3 3

Total cost of Fundraising

3 14 1 3 63 84

Management of rented property Legal Fees/Valuations of investment property Administration Maintenance Council Tax Insurance

0 3 1 0 2

0 0 0 0 0

Total cost of property management

0 3 1 0 2 6

0 3 3 (2) 2 6

Investment managers fees

20 109

Total cost of generating funds

110

3.2 Charitable Activities:

Unrestricted Restricted Funds Funds £000 £000

Endowment Funds £000

2012/13 Total Funds £000

2011/12 Total Funds £000

8 35 4 2 9 58

4 18 0 1 0 23

1 15 38 54

Patients welfare and amenities Medical & Rehabilitation Equipment & Patient Information Furniture & Fittings Refurbishment Buildings & Gardens Hospitality Miscellaneous- Incl Christmas Gifts

1 9 3 0 9

7 26 1 2 0

0 0 0 0 0

Furniture & Fittings Christmas Events Long Service & other Awards

0 0 0

0 15 26

0 0 0

Total staff welfare & amenities

0 15 26 41

Research

Medical & Rehabilitation Equipment Bed Purchase Total Furniture & fittings IT Equipment Training Building, Garden & Refurbishments Grants for Supportive Therapy Staff

248 0 1 2 7 1 0

105 73 6 8 9 32 0

0 0 0 0 0 0 0

684 0 27 11 7 65 12

Total contribution East Kent Hospitals Trust

259

233

353 73 7 10 16 33 0 492

806

Total grants payable to East Kent Hospitals Trust

281

338

619

883

Unrestricted Restricted Funds Funds £000 £000 13 49 2 7 4 15 1 3 2 5

Endowment Funds £000 1 0 0 0 0

2011/12 Total Funds £000 60 10 23 3 8

1,097

Total patients welfare & amenities Staff welfare and amenities

Contributions to NHS

3.3 Governance & Support Costs

Support Costs - Salaries Support Costs - Non pay Governance - Salaries Governance - Audit fees (internal) Governance - Audit fees (external-Annual Report & Accounts)

Total management & administration costs Total resources expended

2012/13 Total Funds £000 63 9 19 4 7 102

346

483

830

104

3.4 Costs for WTE Staff The Charity does not employ any staff directly, but two administrative staff are employed on a full time basis by the East Kent Hospitals University NHS Foundation Trust to work on the Charity. Their costs have been included in note 3.3. A Fundraiser is also employed, the costs of which have been included in note 3.1.

4 Net Movements in Funds 4 Net Movement in funds Available for Charity Use

2012/13 Unrestricted Restricted Endowment Total Funds Funds Funds Funds £000 £000 £000 £000

Reinstated 2011/12 Total Funds £000

Net resources before transfers Net gain from fundraising-events (incl Ins) Net gain from investment properties Net gain from investment portfolio/bank Gross transfer between funds

(3) 10 20 21 (14)

(265) (6) 0 71 14

(1) 0 0 1 0

(269) 4 20 93 0

(223) 14 18 89 0

Sub total of net incoming/outgoing resources

(186)

(152)

(102)

Gains & Losses on investment assets

132

238

372

(132)

Net movement in funds available for future activities

166

220

(234)

5 Fixed Asset Investments 5 Analysis of Fixed Asset Investments -

Common Investment Fund Market value at 1st April 2012 add: Acquisitions Net gain/loss on revaluation and sale Charges applied to capital

b/fwd

Market value at 31 Mar 13

Alpha CIF Income Units £000's

Investment properties £000's

Total Fixed Assets £000's

2,644 0 310 (14)

631 0 62 0

3275 0 372 (14)

No of Units 3,448,854 0

2,940

3,448,854

Historic cost at 31 March 2013

693

3,633

3010

6 Debtors 6 Analysis of Debtors Amounts falling due within one year: Unrestricted Funds

Restricted Funds

£000

0 0

31 March 2013 Total Funds £000

31 March 2012

0 0 85

1 0 34

10 95

Total Funds £000

Accrued income Tax claim HMRC Investment Divs & Interest Legacies

Amounts falling due over one year Loan for property maintenance

Total debtors

7 Creditors 7

Unrestricted

Restricted

Funds £000

31 March 2013 £000

31 March 2012

52 2 6 60

5 5 24 34

57 7 30 94

14 8 105 127

Analysis of Creditors Amounts falling due within one year: Trade creditors (Trade Accruals) Audit (KMPG) 12/13 accs (Trade) East Kent Hospitals University NHS Foundation Trust Total creditors falling due within one year

£000

8 Details of Funds 8.1 Analysis of Funds Endowment Funds Name of fund

KCH Longbotham

Total

Balance 31 March 2012 £000 22

Incoming Resources Resources Expended

Transfers

Gains & Losses

£000 1

£000 (1)

£000 0

£000 2

(1)

Incoming Resources

Transfers

Gains &

Balance 31 Mar 2013 £000 24 0 24

8.2 Restricted Funds Material funds

Balance

Resources

Expended

£000

KCH Gen Purpose

626

115

(86)

QEQM General Purposes KCH Heart Research BHD General Purposes QEQM Coronary Care Unit - CCU RVH General Purposes WHH Gen Purpose WHH Special Care Baby Unit KCH Renal Unit Fund Others

595 211 151 162 124 193 105 136 384

91 7 12 5 4 5 25 5 14

(113) (18) (3) (11) (5) (82) (17) (49) (85)

0 0 0 0 0 0 0 0 0

56 20 15 15 12 14 12 10 29

2,687

283

(469)

238

Name of fund

Total

31 March

Losses

2012 £000

£000

Balance 31 Mar 2013 £000 710 629 220 175 171 135 130 125 102 342 2,739

8.3 Details of material Funds Endowment Name of fund KCH Longbotham Fund

Description of the nature and purpose of each fund

Promoting any Charitable purpose relating to Kent & Canterbury Hosital services as Trustees see fit

Restricted QEQM General Purpose KCH Gen Purpose KCH Heart Research BHD Gen Purpose QEQM Coronary Care Unit - CCU RVH Gen Purpose WHH Gen Purpose WHH Special Care Baby Unit KCH Renal Unit Fund

Any Charitable purpose relating to NHS wholly or mainly for Queen Elizabeth Hospital Charitable purposes relating to NHS wholly or mainly for Kent & Canterbury Hospital Charitable purposes relating to NHS to further Heart Research Any Charitable Purpose relating to NHS wholly or mainly for Buckland Hospital Charitable purposes relating to Coronary Care Unit Any Charitable Purpose relating to NHS wholly or mainly for Royal Victoria Hospital Any Charitable Purpose relating to NHS wholly or mainly for William Harvey Hospital Charitable purposes relating to NHS & provision of additional equip & staff training Charitable purposes relating to NHS & provision of additional equip & staff training for Renal Services

Designated QEQM Property Fund EKHT Digital Mammo Appeal Fund EKHT Urgent & Long Term Care Services Fund QEQM Diabetes Fund KCH Coronary Care Fund QEQM Special Care Baby Unit

Any Charitable purpose relating to NHS wholly or mainly for Queen Elizabeth Hospital For the provision of digital equipment. Staff training and other equipment related to breast cancer Any Charitable purpose relating to NHS & purchase of equipment & staff training Any Charitable purpose relating to NHS & purchase of equipment & staff training Any Charitable purpose relating to NHS & purchase of equipment & staff training Any Charitable purpose relating to NHS & purchase of equipment & staff training

9 Related party transactions During the year none of the Trustees or members of the key management staff or parties related to them has undertaken any material transactions with the East Kent Hospitals Charity. The Charitable Trust has made revenue and capital payments to the East Kent Hospitals University NHS Foundation Trust where the Trustees are also members of the Trust Board.

10 Charity Tax East Kent Hospitals Charity is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable trust for UK income tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Part 10 Income Tax Act 2007 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

11 Contingent Assets The Charity has been made aware of an estate in which they are a 25% residual beneficiary but which is currently being held in Trust where the interest is paid to an individual beneficiary for her lifetime. The Trust is significant (estimated to be in the region of ÂŁ300k), but this sum is subject to the markets and expertise of the investment manager. The Charity cannot at this time consider this as an assured income and has therefore not recognised the potential legacy of ÂŁ75k for the Cancer Services in the accounts.

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Registered Charity Number: 1076555

East Kent Hospitals University NHS Foundation Trust 2nd Floor Trust Offices Kent and Canterbury Hospital Ethelbert Road Canterbury, Kent CT1 3NG Telephone: 01227 866356 Fax: 01227 866377 E-Mail: ekh-tr.fundraising@nhs.net Charity Registration No. 1076555