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THE FRIENDS OF GUY'S HOSPITAL REPORT AND ACCOUNTS FOR THE YEAR ENDED 30TH SEPTEMBER 2002
CONTENTS
Legal and Administrative Information Executive Committees’ Report of the Activities Auditors’ Report Statement of Financial Activities Balance Sheet Statement of Total Recognised Gains and Losses Notes to the Accounts
W H PAYNE & CO CHARTERED ACCOUNTANTS SANDRINGHAM HOUSE 199 SOUTHWARK BRIDGE ROAD LONDON SE1 OHA
Charity Registration No. 264150
THE FRIENDS OF GUY'S HOSPITAL
LEGAL AND ADMINISTRATIVE INFORMATION
Executive committee
President: Lord Harris of Peckham
Vice Presidents: Mrs. B.H. Cooper MBE K. Glendinning MBE Lady Harris Hon Mrs. J. McBeath Lady Robens Mr. W. White
Chairman: O.H. Shaheen MS FRCS
Vice Chairman: M. Watson
Treasurer: J.R. Simpson
Other Members: Dr. A. Campbell Judge S. Coates (appointed October 2001) Mrs. D. Hay Professor R. Hay (appointed October 2001) P. Hiscock Dr. G. Mack Mrs. M. Roberts A.J. Roles Professor J. Rowe C. Saunders Dr. G.W. Scott MD FRCP
Mrs. A. Franklin co-opted member
Principal office Level 2, Thomas Guy House, Guy’s Hospital, St. Thomas’ Street, London, SE1 9RT. Auditors W H Payne & Co, Sandringham House, 199 Southwark Bridge Road, London, SE1 0HA. Bankers
National
Westminster Bank Plc, London Bridge Branch, 10 Southwark Street, London, SE1
1TT.
THE FRIENDS OF GUY'S HOSPITAL executive COMMITTEES’ REPORT OF THE ACTIVITIES The Executive Committee present their report along with the financial statements of the charity for the year ended 30th September 2002. Legal and administrative information set out on page 1 forms part of this report. The financial statements have been prepared in accordance with the accounting policies set out in note 1 and comply with the Charity’s Articles of Constitution and applicable law. Constitution The Friends of Guys Hospital is a registered Charity number 264150. The Charity was formed by an amalgamation of The Guild of Ex-Patient and Friends of Guy’s Hospital, and Guy’s Hospital Ladies Association, and traces its origin back to 1895. The Charity’s governing documents are its Articles of Constitution. Objects and activities The Charity provides amenities for patients and staff. Medical research is also supported and substantial grants are made for works of improvement which benefit patients, staff and visiting relatives. The Charity is able, from time to time, to purchase medical and surgical equipment which Guy's Hospital is not able to buy from its own budget. The Charity's wholly owned subsidiary, The Friends of Guy's Trading Company Limited, operates a shop in the grounds of Guy's Hospital selling flowers, gifts and sundry items in order to raise funds for the Charity. Organisation The Executive Committee who served during the year are set out in the Charity’s Legal and Administrative Information. Members of the committee are appointed by Executive Committee. At each annual general meeting one third of committee members retire from office and may be reappointed. Review of activities The financial statements for the year ended 30th September 2002 show net outgoing resources of £141,219 (2001 incoming resources £76,253). The relatively large reduction in funds in the current year is due primarily to two Medical grants of £150,000 and £99,500 made in the year as detailed in the notes to the financial statements. Subscriptions and donations amounted to £99,410 (2001 - £51,649). This included £42,000 donated from Lord Harris who intends to fund half the costs of the above medical grants. Members of the Executive Committee would like to express their gratitude to Lord Harris for enabling the Charity to make two such major awards. £15,000 (2001 £10,000) was donated from The Friends of Guy’s Trading Company Limited, the Charity’s subsidiary, which runs the flower shop in the grounds of Guy’s Hospital. During the year the flower shop commenced the sale of second hand clothes which has proved very successful Legacies receivable for the year were £17,250 (2001 - £40,000) and investment and deposit account interest £19,831 (2001 - £27,599). Reserves policy The Executive Committee have examined the requirement to maintain unrestricted funds which are the free reserves of the charity. The Executive Committee consider that, given the nature of our work, this should be approximately £400,000, which gives flexibility to make grants while ensuring adequate working capital exists for our support, management and administration costs. Unrestricted funds were £419,974 at the year end. Investment powers Under the Articles of Constitution, the Charity has the power to make any investment which the Executive Committee sees fit. Risk management The Executive Committee actively review the major risks to which the Charity is exposed on a regular basis and confirm that systems have been established to mitigate those risks. Responsibilities of members of the Executive Committee The Articles of Constitution requires the members of the Executive Committee to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the surplus or deficit of the charity for that period. In preparing those financial statements the members of the Executive Committee are required to Select suitable accounting policies and then apply them consistently; The members of the Executive Committee are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and which enable them to ensure that the financial statements comply with the Charities Act 1993. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Approved by the Executive Committee and signed on their behalf by: O.H. Shaheen MS, FRCS Chairman Guy's Hospital, St. Thomas Street, London, SE1 9RT. 21st January 2003
INDEPENDENT AUDITORS’ REPORT TO THE EXECUTIVE COMMITTEE OF THE FRIENDS OF GUY'S HOSPITAL We have audited the financial statements of The Friends of Guy’s Hospital for the year ended 30th September 2002 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Total Recognised Gains and Losses and the Related Notes numbered 1 to 17. These financial statements have been prepared under the historical cost convention as modified by the revaluation of investments and the accounting policies set out therein. Respective responsibilities of members of the Committee and auditors The members of the Executive Committees’ responsibilities for preparing the annual report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards are set out in the statement of Executive Committees’ responsibilities. Our responsibility is to audit the financial statements in accordance with relevant legal and regulatory requirements and United Kingdom Auditing Standards. We report to you our opinion as to whether the financial statements give a true and fair view and are properly prepared in accordance with the Charities Act 1993. We also report to you if, in our opinion, the Executive Committees’ report is not consistent with the financial statements, if the Charity has not kept proper accounting records, if we have not received all the information and explanations we require for our audit, or if information specified by law regarding Executive Committees’ remuneration and transactions with the Charity is not disclosed. We read the Executive Committees’ Report and consider the implications for our report if we become aware of any apparent misstatements within it. Basis of opinion We conducted our audit in accordance with Auditing Standards issued by the Auditing Practices Board. An audit includes examination, on a test basis, of evidence relevant to the amounts and disclosures in the financial statements. It also includes an assessment of the significant estimates and judgements made by the members of the Committee in the preparation of the financial statements, and of whether the accounting policies are appropriate to the Charity's circumstances, consistently applied and adequately disclosed. We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order to provide us with sufficient evidence to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or other irregularity or error. In forming our opinion we also evaluated the overall adequacy of the presentation of information in the financial statements. Opinion In our opinion the financial statements give a true and fair view of the state of affairs of the Charity as at 30th September 2002 and of the incoming resources and application of resources, in the year then ended and have been properly prepared in accordance with the Charities Act 1993. W.H.Payne & Co Chartered Accountants and Registered Auditors Sandringham House 199 Southwark Bridge Road London, SE1 0HA
THE FRIENDS OF GUY'S HOSPITAL STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 30TH SEPTEMBER 2002 Total funds Restricted Unrestricted Total As restated funds funds funds (see note 17) Note 2002 2002 2002 2001 Incoming resources Subscriptions and donations 42,000 57,410 99,410 51,649 Legacies - 17,250 17,250 40,000 Activities for generating funds: - Hire of galleria - 17,330 17,330 16,925 - Other income (3) - 500 500 1,542 - Fete/raffle income - 3,038 3,038 4,002 - Christmas and other stalls income - 2,509 2,509 2,348 Investment income and interest (2) - 19,831 19,831 27,599 ______ ______ ______ ______
Total incoming resources 42,000 117,868 159,868 144,065
Less: Costs of generating funds: - Fete/raffle/stall expenses - (1,602) (1,602) (1,208) ______ ______ ______ ______ Net incoming resources available for charitable application 42,000 116,266 158,266 142,857 ______ ______ ______ ______ Charitable expenditure: - Grants and donations payable (4) 42,000 221,479 263,479 32,645 - Support costs (5) - 28,837 28,837 27,906 - Management and administration (6) - 10,584 10,584 10,562 ______ ______ ______ ______
Total charitable expenditure 42,000 260,900 302,900 71,113 ______ ______ ______ ______
______ ______ ______ ______ Net incoming/(outgoing) resources before revaluations (8) - (144,634) (144,634) 71,744
Other recognised gains and losses: - Unrealised gain on investment - 3,415 3,415 4,509 ______ ______ ______ ______
Net movement in funds - (141,219) (141,219) 76,253
Total funds brought forward - 561,193 561,193 484,940 ______ _______ _______ ______
Total funds carried forward £- £419,974 £419,974 £561,193 ______ _______ _______ ______
THE FRIENDS OF GUY'S HOSPITAL
BALANCE SHEET
AS AT 30TH SEPTEMBER 2002
Note 2002 2001 As restated (see note 17) Fixed assets
Tangible assets (9) 1,346 1,215 Investment in subsidiary (10) 2 2 ____ _____
1,348 1,217 ____ _____ Current assets
Investments (11) 163,521 160,106 Debtors (12) 17,017 10,738 Cash on deposit 463,759 450,197 Cash at bank and in hand 54,370 499 ______ ______
698,667 621,540
Creditors: amounts falling due within one year (13) (280,041) (61,564) ______ ______
Net current assets 418,626 559,976 ______ ______
Net assets £419,974 £561,193 ______ ______ Reserves
Represented by:- Unrestricted funds £419,974 £561,193 ______ ______ Approved by the committee on 21st January 2003 O.H. Shaheen MS, FRCS - Chairman J.R. Simpson - Treasurer
THE FRIENDS OF GUY'S HOSPITAL STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES AS AT 30TH SEPTEMBER 2002
2002 2001 As restated (see note 17)
Total recognised gains and losses £(141,219) £76,253 ______ _____
Note on prior period adjustment (141,219)
Prior period adjustment (see note 17) 31,392 ______
Total gains and losses recognised since the last annual report £(109,827) ______
THE FRIENDS OF GUY'S HOSPITAL NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 30TH SEPTEMBER 2002
1. Accounting policies
The principal accounting policies, which have been consistently applied, are:-
(a) Basis of accounting
The financial statements are prepared under the historical cost convention modified to include the revaluation of investments, in accordance with applicable accounting standards and the Statement of Recommended Practice “Accounting by Charities”.
(b) Basis of consolidation
The Charity has taken advantage of the exemption provided by the Statement of Recommended Practice “Accounting by Charities” not to prepare group financial statements. The financial statements present information about the Charity as an individual undertaking and not about its group.
(c) Income
Donations and legacies are accounted for as soon as their amounts and receipt is certain.
Investment income and interest on deposits are dealt with on an accruals basis.
(d) Grants payable
The accounting policy in respect of grants payable has been changed to reflect the requirements of the Statement of Recommended Practice “Accounting by Charities”.
Grants payable are charged in the year when the offer is conveyed to the recipient. Grants offers remain payable for one year after the date of the offer. If grants are not paid in full within that period any undrawn amounts are credited to the Statement of Financial Activities.
The adoption of this policy requires a prior period adjustment to be made to recognise grant commitments outstanding at the start of the financial year which were not included in grants payable under the old accounting policy.
(e) Resources expended
Resources expensed are included in the Statement of Financial Activities on an accruals basis, inclusive of any VAT which cannot be recovered.
Certain expenditure is directly attributable to specific
activities and has been included in those cost categories. Certain other
costs, which are attributable to more than one activity, are apportioned
across cost categories on the basis of an estimate of the proportion of time
spent by staff on those activities. (f) Tangible fixed assets
Fixed assets are stated at original historical cost less aggregate depreciation.
Depreciation is provided at rates calculated to write off the cost of each asset on a straight line basis over its estimated useful life as follows:-
Office equipment - 20% per annum
(g) Investments
Investments are shown at market value. Unrealised gains and losses are recorded in the statement of financial activities as they arise.
(h) Fund accounting
Unrestricted funds – these are funds which can be used in accordance with the charitable objects at the discretion of the Executive Committee.
Restricted funds – these are funds that can only be used for particular restricted purposes within the objects of the Charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.
Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.
(i) Cash flow statement
The Charity has taken advantage of the exemption in Financial Reporting Standard 1 from producing a cash flow statement on the grounds that it is a small Charity.
2. Investment income 2002 2001
Income from investments 8,500 8,500 Interest on deposit accounts 11,331 19,099 _____ _____
£19,831 £27,599 _____ _____
3. Other income 2002 2001
Sale of cook books - 1,542 Advertising income 500 - _____ _____
£500 £1,542 _____ _____
4. Grants and donations payable 2002 2001
Research grants 8,021 (664) Medical Committee 245,055 19,952 Amenities 8,393 5,841 Christmas grant 2,010 1,604 Intensive Care donation - 5,912 _____ ______
£263,479 £32,645 _____ ______
Individual research, medical committee and amenities grants committed/(unutilised/recovered) for the year ended 30th September 2002 are as follows:-
Research grants Department of Haematology (593) Department of Conservative Dentistry – research equipment 75 Ultrasonic Angiology Lab. – computer (3) Department of Cytogenetics – submarine gel tank (1,242) Department of Radiological Science – camera (31) Haemophilia Reference Centre (2,500) Physiotherapy (2,400) Oral medicine (2,250) Pharmacy education 1,250 Department of chemical pathology 1,510 Department of urology 2,500 Pharmacy 2,500 Nutrition and diabetes 2,500 Department of chemical pathology 1,705 Paediatric intensive care 2,500 Nuclear medicine 2,500 _____
£8,021 _____ Medical grants Head and neck ward – pulse oximeter 2,228 Department of Ophthalmology – auto kerato/refractor (149) Department of Oral and Maxillofacial Surgery – camera and endoscopes (1,417) Oncology – infra – operative radiotherapy system 150,000 ENT – image guidance system 99,500 Paediatric Orthopaedic Department – cast saw (1,710) Aston Key Ward – pulse oximeter (1,795) Breast Surgery – make up machine (1,602) ______
£245,055 ______ 4. Grants and donations payable - (continued)
Amenities grants Chapel – sound system 5,695 Paediatric Intensive Care Unit – refurbishment of two visitor rooms 1,472 Nuclear Medicine – TV/video 149 Radiotherapy – upgrade facilities for patients and staff 4,170 Rheumatology Department – two couches 1,486 Guy’s Nursery – toys and equipment 503 Guy’s Nursery – science and maths equipment (82) Flower shop (refurbishment – see note 16) (5,000) _____
£8,393 _____
Reconciliation of grants payable 2002 2001
Commitments at beginning of year 34,968 66,360
Commitments made in the year 284,475 85,088 Grants recovered or not requested by grantee within one year of date granted (20,996) (52,443) ______ ______
Grants payable for the year 263,479 32,645
Grants paid during the year (25,674) (64,037) ______ ______
Commitments at end of year £272,773 £34,968 ______ ______
5. Support costs 2002 2001
Staff costs 27,330 25,789 Printing and stationery 436 664 Postage 54 58 Telephone 374 417 Depreciation of tangible fixed assets 643 978 _____ _____
£28,837 £27,906 _____ _____
6. Management and administration 2002 2001
Staff costs 3,037 2,865 Printing and stationery 49 74 Postage 6 7 Accountancy 4,506 4,518 Telephone 42 46 Bank charges/interest 640 524 Sundry expenses 2,090 2,202 Depreciation of tangible fixed assets 214 326 _____ _____
£10,584 £10,562 _____ _____
7. Staff costs and Executive Committees’ remuneration 2002 2001
Wages and salaries 27,751 27,099 Social Security costs 2,616 1,555 _____ _____
£30,367 £28,654 _____ _____
The average number of staff employed during the year was 2 2 ____ _____
Members of the Executive Committee received no remuneration (2001 - £nil) and were reimbursed £260 (2001 - £235) of their expenses in the year.
8 Net incoming/(outgoing) resources for the year 2002 2001
This is arrived at after charging:- £ £
Depreciation 857 1,304 Auditors’ remuneration 4,506 4,518 _____ _____
9. Tangible fixed assets Office equipment Total Cost At beginning of year 12,345 12,345 Additions 988 988 _____ _____
At end of year 13,333 13,333 _____ _____ Depreciation At beginning of year 11,130 11,130 Charge for the year 857 857 _____ _____
At end of year 11,987 11,987 _____ _____ Net book value At end of year £1,346 £1,346 _____ _____
At beginning of year £1,215 £1,215 _____ _____
10. Fixed asset investments Subsidiary undertaking
At beginning and end of year £2 ___ Subsidiary undertaking
Subsidiary undertakings and the proportions of share capital held by The Friends of Guy's Hospital are as follows:- 2002 2001
The Friends of Guy's Trading Company Limited 100% 100%
The above subsidiary undertaking is incorporated in Great Britain and registered in England and Wales.
The company runs a shop in the grounds of Guy's Hospital selling flowers, gifts and confectionery and second hand clothes.
10. Fixed asset investments – (continued)
Profit and loss account 2002 2001
Turnover 54,895 45,857 Cost of sales (23,543) (27,469) _____ _____
Gross profit 31,352 18,388
Administrative expenses (15,932) (13,149) Donation to The Friends of Guy’s Hospital (15,000) (10,000) Exceptional items: Refurbishment grant repair (5,000) - Reversal of refurbishment expenditure accrual 4,965 - _____ _____
Profit/(loss) on ordinary activities before taxation 385 (4,761) Corporation tax (28) 804 _____ ______
Retained in subsidiary £357 £(3,957) _____ ______
At 30th September 2002, the aggregate of the share capital and reserves of The Friends of Guy's Trading Company Limited amounted to £3,487 (2001 - £3,130).
11. Current asset investments 2002 2001
Market value at beginning of year 160,106 155,597 Gain in the year 3,415 4,509 ______ ______
Market value at end of year £163,521 £160,106 ______ ______ Investments at market value comprise: Quoted UK Government securities £163,521 £160,106 ______ ______
Historical cost £116,006 £116,006 ______ ______
12. Debtors 2002 2001
Amounts due from group undertakings 15,255 9,704 Prepayments and accrued income 1,762 1,034 _____ ______
£17,017 £10,738 _____ ______
13. Creditors: amounts falling due within one year 2002 2001 As restated (see note 17)
Grants payable 272,773 34,968 Bank overdraft - 19,548 Accruals and deferred income 7,268 7,048 ______ _____
£280,041 £61,564 ______ _____
14. Reconciliation of movement in funds 2002 2001
Net movement in funds for the year (141,219) 76,253 ______ ______
Funds at beginning of year as previously stated 630,243 484,940 Prior period adjustment (69,054) - ______ ______
Funds at beginning of year as restated 561,193 484,940 ______ ______
Funds at end of year £419,934 £561,193 ______ ______
15. Restricted funds At start of Incoming Outgoing At end of year resources resources year
Medical grants Oncology – Infra – operative radiotherapy System - 25,000 (25,000) - ENT – image guidance system - 17,000 (17,000) - ______ ______ _____ ______
£- £42,000 £(42,000) £- ______ ______ _____ ______
(i) Lord Harris of Peckham, the Charity’s President has indicated that he will make donations to the Charity over a period of three years to cover half the cost of two medical grants made in the year. The grants, totalling £249,500 were included in grant commitments at the year end.
In the current year donations totalling £42,000 were received from Lord Harris as recorded in note 15. No asset has been recorded for the future donations due which will be recorded in the financial statements when received.
(ii) During the year the Charity received a donation of £15,000 from The Friends of Guy’s Trading Company Limited.
(iii) A grant of £5,000 which the Charity made to The Friends of Guy’s Trading Company Limited in the year ended 30th September 2000 was refunded to the Charity in the current year.
17. Prior period adjustment
The effect of the change in accounting policy on grants as detailed in note 1(d) has been to reduce grants payable in the year ended 30th September 2001 by £31,392.
THE FRIENDS OF GUY'S TRADING COMPANY LIMITED REPORT AND ACCOUNTS FOR THE YEAR ENDED 30TH SEPTEMBER 2002
CONTENTS
Report of the Directors Report of the Auditors to the Shareholders Profit and Loss Account Balance Sheet Notes to the Accounts
W H PAYNE & CO CHARTERED ACCOUNTANTS SANDRINGHAM HOUSE 199 SOUTHWARK BRIDGE ROAD LONDON SE1 0HA
The Company's Incorporation No. is: 2981239 REPORT OF THE DIRECTORS
THE FRIENDS OF GUY'S TRADING COMPANY LIMITED
The directors present their annual report and audited accounts of the company for the year ended 30th September 2002. Principal activity The principal activity of the company is the sale of flowers, gifts, confectionery and sundries. Directors and their interests The directors who have held office during the year and their beneficial interests in the shares of the company are as follows:- Directors Interest Directors Interest Directors 30.9.02 30.9.01
Dr. A.C. Campbell (resigned 18.4.02) - - Mr. J.R. Simpson - - Mr. O.H. Shaheen - - Mrs. D. Hay (resigned 27.3.02) - - Mr. C.B.L. Saunders (appointed 18.4.02) - - Mrs. A.L. Franklin (appointed 18.4.02) - - Directors' responsibilities Company law requires the directors to prepare accounts for each financial year which give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing those accounts, the directors are required to:
The directors are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the company and which enable them to ensure that the accounts comply with the Companies Act 1985. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Auditors A resolution to re-appoint W.H. Payne & Co. as auditors of the company will be submitted to the annual general meeting. Small company exemption The accounts have been prepared in accordance with special provisions of Part VII of the Companies Act 1985 relating to small companies. BY ORDER OF THE BOARD J.R. Simpson Secretary Sandringham House 199 Southwark Bridge Road, London, SE1 0HA. 21st January 2003
INDEPENDENT AUDITORS' REPORT TO THE SHAREHOLDERS OF THE FRIENDS OF GUY'S TRADING COMPANY LIMITED
We have audited the accounts of The Friends of Guy’s Trading Company Limited for the year ended 30th September 2002 which comprise the Profit and Loss Account, the Balance Sheet and the Related Notes numbered 1 to 10. These accounts have been prepared under the historical cost convention and the accounting policies set out therein. Respective responsibilities of the directors and auditors The directors’ responsibilities for preparing the annual report and the accounts in accordance with applicable law and United Kingdom Accounting Standards are set out in the statement of directors’ responsibilities. Our responsibility is to audit the accounts in accordance with relevant legal and regulatory requirements and United Kingdom Auditing Standards. We report to you our opinion as to whether the accounts give a true and fair view and are properly prepared in accordance with the Companies Act 1985. We also report to you if, in our opinion, the directors’ report is not consistent with the accounts, if the company has not kept proper accounting records, if we have not received all the information and explanations we require for our audit, or if information specified by law regarding directors’ remuneration and transactions with the company is not disclosed. We read the Directors’ Report and consider the implications for our report if we become aware of any apparent misstatements within it. Basis of opinion We conducted our audit in accordance with United Kingdom Auditing Standards issued by the Auditing Practices Board. An audit includes examination, on a test basis, of evidence relevant to the amounts and disclosures in the accounts. It also includes an assessment of the significant estimates and judgements made by the directors in the preparation of the accounts, and of whether the accounting policies are appropriate to the company's circumstances, consistently applied and adequately disclosed. We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order to provide us with sufficient evidence to give reasonable assurance that the accounts are free from material misstatement, whether caused by fraud or other irregularity or error. In forming our opinion we also evaluated the overall adequacy of the presentation of information in the accounts. Opinion In our opinion the accounts give a true and fair view of the state of the company's affairs as at 30th September 2002 and of its profit for the year then ended and have been properly prepared in accordance with the Companies Act 1985. W.H. Payne & Co. Chartered Accountants and Registered Auditor, Sandringham House, 199 Southwark Bridge Road, London, SE1 0HA.
THE FRIENDS OF GUY'S TRADING COMPANY LIMITED
PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 30TH SEPTEMBER 2002
Note 2002 2001
Turnover (1) 54,895 45,857
Cost of sales (23,543) (27,469) ______ ______
Gross profit 31,352 18,388
Administrative expenses (15,932) (13,149)
Donation to The Friends of Guy’s Hospital (15,000) (10,000)
Exceptional items: - Refurbishment grant repaid (5,000) - - Reversal of refurbishment expenditure accrual 4,965 - ______ ______
Profit/(loss) on ordinary activities before taxation (2) 385 (4,761)
Tax on profit/(loss) on ordinary activities (3) (28) 804 ______ ______
Retained profit/(accumulated deficit) for the year 357 (3,957)
Retained profit at the beginning of the year 3,128 7,085 ______ ______
Retained profit at the end of the year £3,485 £3,128 ______ ______
Continuing operations None of the company's activities were acquired or discontinued during the above two financial years. Total recognised gains and losses The company has no recognised gains or losses other than the profit for the above two financial years. The accompanying notes are an integral part of this profit and loss account.
THE FRIENDS OF GUY'S TRADING COMPANY LIMITED
BALANCE SHEET 30TH SEPTEMBER 2002
Note 2002 2001 Fixed assets
Office equipment (4) - 231 ___ ___
Current assets
Stocks 8,000 9,500 Debtors (5) 1,259 1,208 Cash at bank and in hand 12,399 9,717 _____ _____ 21,658 20,425
Creditors: amounts falling due within one year (6) (18,171) (17,526) _____ _____ Net current assets 3,487 2,899 _____ _____
Net assets £3,487 £3,130 _____ _____ Capital and reserves
Called up share capital (7) 2 2 Profit and loss account 3485 3,128 _____ _____ Shareholders' funds (8) £3,487 £3,130 _____ _____
The accounts have been prepared in accordance with special provisions of Part VII of the Companies Act 1985 relating to small companies. Signed on behalf of the board of directors on 23rd January 2003
Mr. O.H. Shaheen The accompanying notes are an integral part of this balance sheet. THE FRIENDS OF GUY'S TRADING COMPANY LIMITED
NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 30TH SEPTEMBER 2002
1. Accounting policies
The principal accounting policies, which have been consistently applied, are:-
(a) Basis of accounting The accounts are prepared under the historical cost convention and in accordance with applicable accounting standards.
(b) Tangible fixed assets Fixed assets are stated at original historical cost less aggregate depreciation.
Depreciation is provided at rates calculated to write off the cost, less estimated residual value, of each asset on a straight line basis over its estimated useful life as follows:-
Fixtures and fittings 20% per annum
(c) Stocks Stocks are stated at the lower of cost and net realisable value.
(d) Taxation The charge for taxation is based on the profit for the year and takes into account taxation deferred because of timing differences between the treatment of certain items for accounting and taxation purposes.
The accounting policy in respect of deferred tax has been changed this year to reflect the requirements of FRS 19 “Deferred Tax”. Provision is made at current rates for tax deferred in respect of all material timing differences. Deferred tax assets are only recognised to the extent that they are regarded as recoverable. The company has not adopted a policy of discounting deferred tax assets and liabilities.
(e) Turnover Turnover comprises the value of sales (excluding VAT) of goods supplied in the normal course of business.
(f) Cash flow statement The company has taken advantage of the exemption in Financial Reporting Standard 1 from producing a cash flow statement on the grounds that it is a small company.
2. Profit on ordinary activities before taxation 2002 2001
Profit on ordinary activities before taxation is arrived at after charging/(crediting):- £ £
Directors' remuneration - - Auditors' remuneration 650 600 Depreciation 231 232 Exceptional items: - Refurbishment grant repaid 5,000 - - Reversal of refurbishment expenditure accrual (4,965) _____ ___
3. Tax on profit/(loss) on ordinary activities 2002 2001
Profit/(loss) on ordinary activities before taxation £385 £(4,761) ____ _____
Corporation tax at 10% 39 (476)
Effects of: Excess of depreciation over capital allowances 15 27 Adjustment in respect of prior period - (97) Losses carried back and utilised at the rate of 20% - (258) Profits chargeable at the rate of zero% (26) - ___ ___
Tax on profit/(loss) on ordinary activities £28 £(804) ___ ___
4. Fixed assets Office equipment Total Cost At beginning and end of year 1,159 1,159 ____ ____ Depreciation At beginning of year 928 928 Charge for the year 231 231 ____ ____
At end of year 1,159 1,159 ____ ____ Net book value At end of year £- £- ___ ___
At beginning of year £231 £231 ___ ___
5. Debtors 2002 2001
Corporation tax recoverable 731 731 Others 528 477 ____ ____
£1,259 £1,208 ____ ____ 6. Creditors: amounts falling due within one year 2002 2001
Trade creditors 266 947 Amounts owed to group undertakings 15,255 9,704 Corporation tax 52 24 Other creditors 2,598 6,851 _____ _____
£18,171 £17,526 _____ _____
7. Called up share capital 2002 2001
Authorised: 100 Ordinary shares of £1 each £100 £100 ____ ____ Allotted, called up and fully paid: 2 Ordinary shares of £1 each £2 £2 ____ ____
8. Reconciliation of movements on shareholders' funds 2002 2001
Profit/(loss) for the financial year after taxation 357 (3,957) Shareholders' funds at beginning of year 3,130 7,087 _____ ____
Shareholders' funds at end of year £3,487 £3,130 _____ ____ 9. Ultimate parent
The company is a subsidiary undertaking of The Friends of Guy's Hospital, a registered charity.
10. Related party transactions
The company’s related parties and the extent of the transactions with them are as follows:-
Party Relationship
The Friends of Guy’s Hospital Controlling party
Transactions 2002 2001 £ £
Amount due to controlling party at 30th September 2002 15,255 9,704 Expenses recharged from controlling party during the year 551 1,026 Donation to controlling party during the year 15,000 10,000 _____ ______
A grant of £5,000 received from The Friends of Guy’s Hospital in the year ended 30th September 2000 was repaid by the company in the current year. THE FRIENDS OF GUY'S TRADING COMPANY LIMITED
DETAILED PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 30TH SEPTEMBER 2002
2002 2001
Sales 54,895 45,857
Cost of sales
Opening stock 9,500 10,340 Purchases 22,043 26,629 Closing stock (8,000) (9,500) ______ ______ (23,543) (27,469) ______ ______
Gross profit 31,352 18,388
Administrative expenses
Salaries 12,360 8,432 Bank charges 638 730 Accountancy and audit 650 600 Travel - 46 Insurance 440 352 Rates 374 388 Sundry expenses 568 461 Volunteer expenses 211 1,126 Printing and stationery 33 - Telephone 164 80 Postage 6 95 Cleaning 120 107 Repairs and maintenance 137 500 Depreciation 231 232 ______ (15,932) _____ (13,149)
Donation to The Friends of Guy’s Hospital (15,000) (10,000)
Exceptional items: - Refurbishment grant repaid (5,000) - - Reversal of refurbishment expenditure accrual 4,965 - _____ ____ (35) - _____ _____
Profit/(loss) on ordinary activities before taxation £385 £(4,761) _____ _____
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