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THE FRIENDS OF GUY'S HOSPITAL
Charity Registration No: 264150
REPORT AND ACCOUNTS
FOR THE YEAR ENDED 30TH SEPTEMBER 2004
THE FRIENDS OF GUY'S HOSPITAL
CONTENTS
Legal and Administrative Information Executive Committees’ Report Independent Auditors’ Report Statement of Financial Activities Balance Sheet Notes to the Accounts
WILKINS KENNEDY CHARTERED ACCOUNTANTS BRIDGE HOUSE LONDON BRIDGE LONDON SE1 9QR
THE FRIENDS OF GUY'S HOSPITAL
LEGAL AND ADMINISTRATIVE INFORMATION
Executive committee
President: Lord Harris of Peckham
Vice Presidents: Mrs. B.H. Cooper MBE - Died on 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: K.M. Jeremiah
Other Members: Dr. A. Campbell Her Honour Judge S. Coates Mrs. D. Hay Professor R. Hay P. Hiscock A.J. Roles Professor J. Rowe C. Saunders J.R. Simpson Dr. T. Mant Mrs. A. Franklin co-opted member
Principal office
Level 2, Thomas Guy House, Guy’s Hospital, St. Thomas’ Street, London, SE1 9RT.
Auditors
Wilkins Kennedy, Bridge House, London Bridge, London SE1 9QR.
Bankers
National Westminster Bank Plc, London Bridge Branch, 10 Southwark Street, London, SE1 1TT.
THE FRIENDS OF GUY'S HOSPITAL
executive COMMITTEES’ REPORT
The Executive Committee are pleased to present their report together with the financial statements of the Charity for the year ended 30th September 2004.
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, current statutory requirements and the Statement of Recommended Practice - Accounting and Report by Charities.
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 2004 show net incoming resources of £134,073 (2003 incoming resources £102,600).
Subscriptions and donations amounted to £50,120 (2003 - £51,914). £15,000 (2003 £15,000) 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.
Legacies receivable for the year were £155,706 (2003 - £80,418) and investment and deposit account interest £19,582 (2003 - £21,190).
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 at least £400,000, which gives flexibility to make grants while ensuring adequate working capital exists for our support, management and administration costs. Unrestricted funds were £646,507 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.
THE FRIENDS OF GUY'S HOSPITAL
executive COMMITTEES’ REPORT
(continued)
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; - Make judgements and estimates that are reasonable and prudent; - State whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and - Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
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.
Auditors
A resolution will be proposed at the Annual General Meeting that Wilkins Kennedy be appointed as auditors to the charity for the ensuing year.
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.
THE FRIENDS OF GUY'S HOSPITAL
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 2004 which comprise the Statement of Financial Activities, the Balance Sheet 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.
This report is made solely to the Charity’s members as a body, in accordance with regulations issued under Section 44 of the Charities Act 1993. Our audit work has been undertaken so that we might state to the Charity’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Charity and the Charity’s members as a body, for our audit work, for this report, or for the opinions we have formed.
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 whether it is consistent with the audited financial statements. We consider the implications for our report if we become aware of any apparent misstatements or material inconsistencies with the financial statements. Our responsibilities do not extend to any other information.
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 2004 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.
Wilkins Kennedy Chartered Accountants and Registered Auditors Bridge House London Bridge London, SE1 9QR
THE FRIENDS OF GUY'S HOSPITAL
STATEMENT OF FINANCIAL ACTIVITIES
(INCLUDING INCOME AND EXPENDITURE ACCOUNT)
FOR THE YEAR ENDED 30TH SEPTEMBER 2004
Restricted Unrestricted Total Total funds funds funds funds Note 2004 2004 2004 2003
Incoming resources Subscriptions and donations 2,200 47,920 50,120 51,914 Legacies - 155,706 155,706 80,418 Grants receivable (2) - - - 16,900 Activities for generating funds: - Hire of galleria - 17,718 17,718 17,758 - Other income (3) - 6,820 6,820 9,002 - Fete/raffle income 3,080 - Christmas and other stalls income - 4,232 4,232 1,973 Investment income and interest (4) - 19,582 19,582 21,190 ______ ______ ______ ______
Total incoming resources 2,200 251,978 254,178 202,235
Less: Costs of generating funds: - Fete/raffle/stall expenses - - - (1,035) - Depreciation of plant and machinery - (3,380) (3,380) (3,380) ______ ______ ______ ______ Net incoming resources available for charitable application 2,200 248,598 250,798 197,820 ______ ______ ______ ______ Charitable expenditure - Grants and donations payable (5) 2,200 65,643 67,843 48,755 - Support costs (6) - 32,682 32,682 31,803 - Managing and administering the charity (7) - 12,485 12,485 12,327 ______ ______ ______ ______
Total charitable expenditure 2,200 110,810 113,010 92,885 ______ ______ ______ ______
______ ______ ______ ______ Net incoming resources before revaluations - 137,788 137,788 104,935
Other recognised gains and losses - Unrealised gain/(loss) on investment - (3,715) (3,715) (2,391) - Realised gain on sale of investment - - - 56 ______ ______ ______ ______ Net incoming resources before transfers c/fwd. - 134,073 134,073 102,600
THE FRIENDS OF GUY'S HOSPITAL
STATEMENT OF FINANCIAL ACTIVITIES
(INCLUDING INCOME AND EXPENDITURE ACCOUNT)
FOR THE YEAR ENDED 30TH SEPTEMBER 2004
Restricted Unrestricted Total Total funds funds funds funds Note 2004 2004 2004 2003
Net incoming resources before transfers b/fwd. - 134,073 134,073 102,600
Gross transfers between funds (3,380) 3,380 - - ______ ______ ______ ______
Net movement in funds (9) (3,380) 137,453 134,073 102,600
Total funds brought forward 13,520 509,054 522,574 419,974 ______ _______ _______ ______
Total funds carried forward £10,140 £646,507 £656,647 £522,574 ______ _______ _______ ______
The Statement of Financial Activities includes all gains and losses recognised in the year.
None of the charity’s activities were acquired or discontinued during the above two financial years.
The later notes form part of these financial statements.
THE FRIENDS OF GUY'S HOSPITAL
BALANCE SHEET
AS AT 30TH SEPTEMBER 2004
Note 2004 2003
Fixed assets Tangible assets (10) 10,806 14,655 Investment in subsidiary (11) 2 2 _____ _____
10,808 14,657 _____ _____ Current assets Investments (12) 117,471 121,186 Debtors (13) 61,166 29,742 Cash on deposit 516,520 402,718 Cash at bank and in hand 4,979 10,667 ______ ______
700,136 564,313
Creditors: amounts falling due within one year (14) (54,297) (56,396) ______ ______
Net current assets 645,839 507,917 ______ ______
Net assets £656,647 £522,574 ______ ______ Funds Unrestricted surplus (15) 646,507 509,054 Restricted surplus (15) 10,140 13,520 ______ ______
£656,647 £522,574 ______ ______
Approved by the committee on and signed on their behalf by:
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O.H. Shaheen MS, FRCS - Chairman
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K.M. Jeremiah - Treasurer
The later notes form part of these financial statements.
THE FRIENDS OF GUY'S HOSPITAL
NOTES TO THE ACCOUNTS
FOR THE YEAR ENDED 30TH SEPTEMBER 2004
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) Incoming resources
Income from donations and grants, including capital grants, is included in incoming resources when these are receivable, except as follows:-
· when donors specify that donations and grants given to the charity must be used in future accounting periods, the income is deferred until those periods. · when donors impose conditions which have to be fulfilled before the charity becomes entitled to use such income, the income is deferred and not included in incoming resources until the pre-conditions for use have been met.
When donors specify that donations and grants, including capital grants, are for particular restricted purposes, which do not amount to pre-conditions regarding entitlements, this income is included in incoming resources of restricted funds when receivable.
(d) 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.
(e) 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 Plant and machinery - 20% per annum
(f) Investments
Investments are shown at market value. Unrealised gains and losses are recorded in the statement of financial activities as they arise.
THE FRIENDS OF GUY'S HOSPITAL
NOTES TO THE ACCOUNTS
FOR THE YEAR ENDED 30TH SEPTEMBER 2004
(g) Fund accounting
Funds held by the charity are either:
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.
(h) 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. Grants receivable Restricted Unrestricted Total Total funds funds funds funds 2004 2004 2004 2003
Guy’s and St. Thomas’ Charitable Foundation £- £- £- £16,900 ___ ___ ___ ______
3. Other income Restricted Unrestricted Total Total funds funds funds funds 2004 2004 2004 2003
Income from automation - 5,242 5,242 3,913 Concert and CD income - 1,043 1,043 4,127 Sale of cook books - 5 5 462 Advertising income - 530 530 500 ____ _____ _____ ____
£- £6,820 £6,820 £9,002 ____ _____ _____ ____
4. Investment income Restricted Unrestricted Total Total funds funds funds funds 2004 2004 2004 2003
Income from investments - 7,100 7,100 8,353 Interest on deposit account - 12,482 12,482 12,837 ___ ______ ______ _____
£- £19,582 £19,582 £21,190 ___ ______ ______ _____
THE FRIENDS OF GUY'S HOSPITAL
NOTES TO THE ACCOUNTS
FOR THE YEAR ENDED 30TH SEPTEMBER 2004
5. Grants and donations payable Restricted Unrestricted Total Total funds funds funds funds 2004 2004 2004 2003
Research grants - 15,284 15,284 28,066 Medical committee - 41,668 41,668 22,260 Amenities grants - 7,021 7,021 (3,545) Christmas grant - 1,670 1,670 1,974 ____ ______ ______ ______
£- £65,643 £65,643 £48,755 ____ ______ ______ ______
Individual research, medical committee and amenities grants committed/(unutilised/recovered) for the year ended 30th September 2004 are as follows:- 2004 Research grants Radiotherapy – Plants (200) Paediatric Bereavement – Duvets and Pillows (30) Guy’s Nursery – Curtains (1,156) Chapel flowers 2,000 Radiotherapy – Upgrade facilities to patient/staff 4,170 Radiotherapy – Plants 200 Palliative care – Toys for children 445 Nucler medicine – TV/Video 300 Guy’s Nursery – Toys/equipment 1,202 Radiology – Fridge 90 _____
£7,021 _____ Medical grants Dorcas Ward – 2 Volumetric Infusion Pumps (400) Service branch (419) Paediatric – Resuscitation manikins 200 Anaesthetics Department – Doppler Probe 12,500 Dietetic Department – Pictorial guide 850 Haematology Day Unit – Cancer backup files 190 GKT Dental Institute – Upgrade teaching facilities 28,747 ______
£41,668 ______ Research grants Oral Medicine and Pathology 648 Dental Biomaterials and Prosthodontics (114) Department of Palliative Care (2,500) Department of Craniofacial Development (2,500) Department of Partnership and Planning (250) Research grant 20,000 ______
£15,284 ______
THE FRIENDS OF GUY'S HOSPITAL
NOTES TO THE ACCOUNTS
FOR THE YEAR ENDED 30TH SEPTEMBER 2004
5. Grants and donations payable - (continued)
Reconciliation of grants payable 2004 2003
Commitments at beginning of year 41,133 272,773
Commitments made in the year 74,042 55,131
Grants recovered or not requested by grantee within one year of date granted (8,399) (6,376) ______ ______
Grants payable for the year 65,643 48,755
Grants paid during the year (66,829) (280,395) ______ ______
Commitments at end of year £39,947 £41,133 ______ ______
6. Support costs Restricted Unrestricted Total Total funds funds funds funds 2004 2004 2004 2003
Staff costs (direct costs of fundraising) - 32,043 32,043 29,590 Printing and stationery - - - 934 Postage - - - 57 Telephone - 287 287 272 Depreciation of tangible fixed assets - 352 352 950 ___ _____ _____ _____
£- £32,682 £32,682 £31,803 ___ _____ _____ _____
Part of the Charity’s administrative, overhead and staff costs have been allocated to support costs on the basis of a proportional allocation of such expenditure where they are identifiable as an integral part of the cost of activities in furtherance of the charity’s objects.
7. Managing and administering the Restricted Unrestricted Total Total Charity funds funds funds funds 2004 2004 2004 2003
Staff costs (general administration) - 3,561 3,561 3,288 Printing and stationery - - - 104 Postage - - - 6 Accountancy - 5,905 5,905 5,788 Telephone - 32 32 30 Bank charges /interest - 813 813 606 Sundry expenses - 2,057 2,057 2,188 Depreciation of tangible fixed assets - 117 117 317 ___ _____ _____ _____
£- £12,485 £12,485 £12,327 ___ _____ _____ _____
THE FRIENDS OF GUY'S HOSPITAL
NOTES TO THE ACCOUNTS
FOR THE YEAR ENDED 30TH SEPTEMBER 2004
8. Staff costs and Executive Committees’ remuneration 2004 2003
Total staff emoluments for the year were as follows:
Wages and salaries 30,982 29,450 Social Security costs 4,622 3,428 _____ _____
£35,604 £32,878 _____ _____
The average number of staff excluding members of the Executive Committee, employed during the year was 2 2 ____ ____
Members of the Executive Committee received no remuneration (2003 - £nil) and were reimbursed £nil (2003 - £140) of their expenses in the year.
9. Net movement in funds 2004 2003
Net movement in funds is arrived at after charging:- £ £
Depreciation 3,849 4,647 Auditors’ remuneration 5,905 5,788 _____ _____
10. Tangible fixed assets Plant and Office machinery equipment Total Cost At beginning and end of year 16,900 6,924 23,824 _____ _____ _____ Depreciation At beginning of year 3,380 5,789 9,169 Charge for the year 3,380 469 3,849 _____ _____ _____
At end of year 6,760 6,258 13,018 _____ _____ _____ Net book value At end of year £10,140 £666 £10,806 _____ _____ _____
At beginning of year £13,520 £1,135 £14,655 _____ _____ _____
THE FRIENDS OF GUY'S HOSPITAL
NOTES TO THE ACCOUNTS
FOR THE YEAR ENDED 30TH SEPTEMBER 2004
11. 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:- 2004 2003
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.
Profit and loss account 2004 2003
Turnover 53,339 55,499 Cost of sales (21,187) (22,338) _____ _____
Gross profit 32,152 33,161
Administrative expenses (18,235) (17,911)
Donation to The Friends of Guy’s Hospital (15,000) (15,000) _____ _____
Profit/(loss) on ordinary activities before interest and taxation (1,083) 250
Interest receivable and similar income 73 44 _____ _____
Profit/(loss) on ordinary activities before taxation (1,010) 294
Tax on profit on ordinary activities - - _____ _____
Retained in subsidiary £(1,010) £294 _____ _____
At 30th September 2004, the aggregate of the share capital and reserves of The Friends of Guy's Trading Company Limited amounted to £2,771 (2003 - £3,781).
THE FRIENDS OF GUY'S HOSPITAL
NOTES TO THE ACCOUNTS
FOR THE YEAR ENDED 30TH SEPTEMBER 2004
12. Current asset investments 2004 2003
Market value at beginning of year 121,186 163,521 (Loss)/gain in the year (3,715) (2,335) Disposals - (40,000) ______ ______
Market value at end of year £117,471 £121,186 ______ ______ Investments at market value comprise: Quoted UK Government securities £117,471 £121,186 ______ ______
Historical cost £87,756 £87,756 ______ ______
13. Debtors 2004 2003
Amounts due from group undertakings 9,384 10,680 Prepayments and accrued income 51,782 19,062 _____ ______
£61,166 £29,742 _____ ______
14. Creditors: amounts falling due within one year 2004 2003
Grants payable 39,947 41,133 Accruals 14,350 15,263 ______ _____
£54,297 £56,396 ______ _____
15. Funds Other recognised At start of Incoming Outgoing gains and At end of year resources resources losses Transfers year Unrestricted General 509,054 251,978 (114,190) (3,715) 3,380 646,507 Restricted Automaton 13,520 - - - (3,380) 10,140 Breast Cancer Fund - 2,200 (2,200) - - - _______ ______ ______ ______ _____ _______
£522,574 £254,178 £(116,390) £(3,715) £- £656,647 _______ ______ ______ ______ _____ _______
Automaton represents a grant made to the charity by Guy’s and St. Thomas’ Charitable Foundation for the purchase of an automated coin slot donations box for Guy’s Hospital. The restricted fund reduces annually by the amount of depreciation associated with the asset originally acquired.
Breast Cancer Fund relates to a donation received by the Charity specifically for the Breast Cancer Unit of Guy’s Hospital. The money was donated to the Unit in the year.
THE FRIENDS OF GUY'S HOSPITAL
NOTES TO THE ACCOUNTS
FOR THE YEAR ENDED 30TH SEPTEMBER 2004
16. Analysis of net assets between funds Restricted Unrestricted funds funds Total
Tangible fixed assets 10,140 666 10,806 Investment in subsidiary - 2 2 Cash on deposit - 516,520 516,520 Cash at bank and in hand - 4,979 4,979 Other net current assets - 124,340 124,340 ______ ______ ______
£10,140 £646,507 £656,647 ______ ______ ______
17. Related party transactions
(i) Lord Harris of Peckham, the Charity’s President has indicated that he would make donations to the Charity over a period of three years to cover half the cost of two medical grants made in the previous years. The grants, totalling £249,500 were included in grants payable in 2002.
Donations totalling £42,000 were received in 2002 and donations totalling £83,000 are expected to be received in the future. No asset has been recorded for the future donations 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.
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