THE PENNINE ACUTE HOSPITALS CHARITY

AND

OTHER RELATED CHARITIES

A REGISTERED CHARITY

NUMBER 1050197

ANNUAL REPORT AND FINANCIAL STATEMENTS

2015/16

For the year to 31 March 2016

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Sections Page

1 Trustee’s Annual Report 3 - 6

2 Reference and Administrative Details 7

3 Structure, Governance and Management of the Charitable Funds 8

4 Trustee Induction and Training 9

5 Strategic Objectives & Activities – Public Benefit 9

6 Relationships with Related Parties/External Bodies 10

7 Review of the Finances, Achievements and 10 - 12 Performance of the Charitable Funds

8 Future Plans 12

9 Investment Policy and Performance 12

10 Reserves Policy (fund balances) 13

11 Risk Review 14

12 Statement of Trustees Responsibilities 15

13 Auditor’s Report 16 - 17

14 Statement of Financial Activities for the year to 31 March 2016 18

15 Balance Sheet as at 31 March 2016 19

16 Notes to the accounts 20 - 26

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Trustee’s Annual Report 1 Fundraising Report 2015/2016 Fundraising Highlights The Pennine Acute Hospitals Charity is well supported by people in each of the local communities it serves and continues to work with Trust staff and the general public to raise funds. Donations and fundraising support make a considerable difference by funding additional equipment, training, research and events to help the Trust provide the best standards of care for patients, engage and develop staff, and support a continuous programme of improvement. Donations continue to be received from patients and their relatives as well as from funeral donations to acknowledge treatment and care received. Gift Aid contributions from current UK taxpayers makes a vast difference to the income received by the charity and we are grateful to all those who are able to make this additional donation to our funds. Link4pink

The Link4Pink committee, led by Chairperson Helen Haigh has continued with its fundraising. The appeal, which supports the Victoria Breast Care Unit at The Royal Oldham Hospital held a number of successful events including the annual Pink Promenade, ‘Link4Pink Day’, and the Big Pink Dinner Dance. Link4Pink have celebrated as Mrs Haigh exceeded her target with the help from family, friends and the local community by raising over £12,000 in the first year as Chairperson. A cheque was presented to consultant breast surgeon Maria Bramley by the committee at the Big Pink Dinner Dance to mark this milestone.

The Pink Promenade sponsored 2.5k walk around Hollingworth Lake in Littleborough raised £2,078.19 for the appeal and was kindly supported once again by Littleborough Rugby Club where the participants congregated after the walk to enjoy drinks and delicious cakes. Receiving overwhelming support from local schools, businesses and members of the community, the appeal has this year purchased various pieces of equipment including a mammography biopsy mobile chair, and funded renovation of the Victoria Unit garden to provide an inviting, peaceful outdoor space where patients can sit.

Think Floyd The Think Floyd appeal, which was set up by Gordon Desser in memory of his wife Jill Desser, continues to receive support from members of the public who make donations. This year Flass Vale Vintage Tractor Club took Think Floyd fundraising in a new direction when they raised £2,800 through a vintage tractor run. Whilst the Floyd Unit raised £637.48 at their Autumn Fair. The appeal recently funded a new tracheostomy care simulator for the Unit.

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Watch Your Mouth The Watch Your Mouth appeal continues to be well supported by patients and their relatives through donation and fundraising. Setup in 2008 by the staff on the maxillofacial unit at North Manchester General Hospital, Watch Your Mouth raises funds to enhance the care and facilities the department are able to provide for head and neck cancer patients. Lorna Lotockyj teamed up with friends to organise a sponsored walk for the appeal, in memory of her parents. Funds were raised to thank the staff for the care they provide and benefit more patients treated on the unit. Children’s A&E Department, North Manchester General Hospital Lead by volunteer Michael Goldstone and colleagues within the department, fundraising for the Children’s A&E Department has continued this year. Gathering support from members of the community, local businesses and schools, funds raised

are used to enhance the experience of young patients who are admitted to the department and have provided new play equipment, craft kits, and medical equipment. One of the businesses who took part in fundraising is Asda Living who held a collection and “greed token scheme” in their Manchester Fort store. A representative from the store visited the hospital to present their donation of £284.91, which has purchases two electronic tablets and age appropriate apps that are now being used to provide information and offer distraction for the young patients during their admission.

Toys for North Manchester General Hospital Sick children at North Manchester General Hospital had a reason to smile after a member of staff donated brand new toys and games. Caroline Holland who works in the catering department at the hospital organised two charity events to raise the money that bought the new toys and visited the children’s ward to deliver the gifts. The toys will remain on the ward so all the children can benefit from them. Mrs Holland explained that her and her family wanted to give something back to the hospital that have cared for her daughter and was pleased to present the new toys for the children to make their stay a little more pleasant. Fundraising Activities Misba Khan, capital and charitable officer in the Trust’s finance department set herself the challenge of climbing Africa’s highest mountain, Mount Kilimanjaro, reaching the summit on Christmas Eve. The ten day slog in temperatures as low as -15 raised £1,486.60 towards new portable sensory equipment for the Children’s Unit at North Manchester General Hospital.

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The unit cares for patients aged 0 – 16 years with a wide variety of needs, and the sensory voyager will provide a portable sensory studio solution which brings sensory equipment to the children who are unable to access the sensory room. Many children with long term life limiting conditions are admitted to the unit for treatment throughout the year. For those children who are immobile in bed, the sensory voyager brings to life their single room. It will significantly help the children to relax, giving them control of the surroundings about them during their admission, as well as making their stay in hospital a more pleasant and memorable experience.

A doting granddad has raised £1,275 for The Royal Oldham Hospital’s Neonatal Intensive Care Unit. Malcolm Macfarlane was so impressed with the care that his first grandchild, Macy Ogden received that he decided to start a year-long campaign to support the unit. Mr Macfarlane, who is an author regularly gives talks on nostalgic music subjects, such as the sounds of the 50s, 60s and the great musicals of stage and screen. He donated all the fees he received from the talks to help towards his fundraising. Lynne Brooksbank and her daughter Terri held a joint birthday party this year, and then generously gave the money donated by friends and family to the Trust Charity. A patient at The Royal Oldham Hospital, Mrs Brooksbank and her family wanted to show their appreciation for the care she has received. Funds were split with a £1,330 donation going to the Link4Pink appeal and £500 to the Breast Care Advisory fund at The Royal Oldham Hospital. Pennies from Heaven In September the Trust launched Pennies from Heaven, a coin collection scheme which enables Trust staff to donate pennies from their income by rounding down their net salaries to the nearest pound with the spare pennies being donated to a nominated charity. Funds raised through the Pennies from Heaven scheme will be divided equally between the Trust Charity and one nominated charity, with the nominated charity for the first year being MedEquip4Kids. The scheme has received a positive response across the Trust, and in the first ten days after being launched 144 members of staff had signed up to donate.

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The Blossom Appeal The Blossom Appeal continues to be a donor to our hospitals and their contribution in purchasing comfort items for patients and medical equipment for breast services is greatly appreciated by the Trust Charity. The Blossom Appeal has recently provided a mammography biopsy mobile chair for North Manchester General Hospital. It was a pleasure to welcome members of The Blossom Appeal committee to visit the hospital, meet staff and thank them for their continued support. League of Friends During 2015-16, the League of Friends continued to support the Trust, holding weekly book stalls on The Royal Oldham Hospital site to generate donations and holding events within the community. Funds raised have enabled the League of Friends to make substantial donations to various areas within the Trust, including the donation of a television for the Pain Clinic and new embroidered feature artwork for the A&E Department at The Royal Oldham Hospital. Also funded by The Royal Oldham Hospital League of Friends, was a special dementia garden which has been created in a small enclosed safe area just off Ward G1 discharge unit. Originally made into a garden area in 2013 by stroke victim Sarah Graham and still retaining its name as Sarah’s garden, the space has now been updated. Thanks to a very generous donation of £1,000 from the League of Friends, new plants have been installed in the garden designed to be colourful and fragrant for patients to enjoy. There is also a colourful mural depicting a sweet shop scene from the 1960s which will evoke memories and stimulate conversations between patients, their families and staff about times gone by. Joshua Wilson Brain Tumour Charity Children’s Daycase Ward 4 at Fairfield General Hospital were delighted to accept a donation from Joshua Wilson Brain Tumour Charity this year. The charity, which was founded in 2014 by Joshua Wilson’s mother Dawn, received support from The Rock in Bury and raised funds to buy entertainment and distraction items for young patients at Fairfield General Hospital. Dawn and Joshua’s granddad John, accompanied by The Rock’s Marketing Manager Linzi Atkinson visited the ward to present their very generous donation. Children’s Daycase Ward 4 has 11 beds and cares for young patients aged three years up to 16, with a wide variety of ailments. With books, toys, a television, headphones and lots of DVD’s there is definitely something that will appeal to all our patients, making their time in hospital more pleasant.

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2 Reference and administrative details

Registered Charity No: 1050197

Address of Charity: The Pennine Acute Hospitals Charity Trust Headquarters

North Manchester General Hospital Delaunays Road Manchester M8 5RB

Trustee arrangements:

The Pennine Acute Hospitals NHS Trust is the corporate trustee of the charity. The directors who served The Pennine Acute Hospitals NHS Trust during the year to 31 March 2016 were as follows:

John Jesky, Chair (left February 2016)

Non-Executive Directors: Shauna Dixon Camilla Guereca Christine Mayer, (Acting Chair from 1 March to 31 March 2016) Margaret Ollerenshaw

Riaz Ahmad Wendy Cardiff

Executive Directors: Dr Gillian Fairfield Chief Executive (left February 2016) Brian Steven Deputy Chief Executive/Director of Finance (retired June 2015) Damien Finn Director of Finance (from September 2015), Acting Chief Exec (1 March

to 31 March 2016) Dominic Tkacyzk Interim Director of Finance (from 1 July to 27 September 2015) David Tomlinson Interim Director of Finance (from 1 March to 31 March 2016) Dr Anton Sinniah Acting Medical Director (until February 2016) Prof M Makin Medical Director (from March 2016) Gill Harris Chief Nurse (from April 2015) Hugh Mullen Director of Operations Jon Lenney Director of Workforce

Banker: Government Banking Service RBSG London Corporate Service Centre CPB Services 2nd Floor 280 Bishopgate London EC2M 4RB

Investment Manager: Legal Adviser: Auditor: Brewin Dolphin Securities Hempsons Solicitors KPMG LLP National House Portland Tower 1 St Peter’s Square 36 St. Ann Street Portland Street Manchester Manchester Manchester M2 3AE M60 2EP M1 3LF

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3 Structure, Governance and Management of the Charitable Funds

The charity was first created by Trust Deed on 26 October 1995 as the Bury Health Care NHS Trust General Charitable Fund. This was amended to create The Pennine Acute Hospitals Charity and other related charities in 2002 following the merger of the four previous NHS Trusts namely Bury, North Manchester, Oldham and Rochdale and the amalgamation of their respective charities. The Pennine Acute Charity administered funds that were for the benefit of the Pennine Care NHS Foundation Trust. During 2015/16 these funds were transferred to Pennine Care NHS Foundation Trust Charity (£82k).

Within the charity there are a number of designated (earmarked) funds relating to particular wards and departments. Where funds have been received which have specific restrictions set by the donor or legacy, for example the R L Gardner fund, a restricted fund has been established.

The charity manages spending through fund holders who operate in accordance with agreed authorisation limits. Fund holders for each fund manage these funds on a day to day basis within the standing financial instructions, standing orders and powers of delegated authority set by the corporate trustee. The Trustee oversees the work of the fund holders and has the power to revoke a fund holders remit or, subject to any specific donor restriction, direct the use to which the funds are put.

The corporate trustee is The Pennine Acute Hospitals NHS Trust. The executive and non-executive directors of the Board of Directors share the responsibility for ensuring that the NHS body fulfils its duties as corporate trustee in managing the charitable funds.

The chair and non-executive directors are appointed by the Appointments Commission. A formally constituted Remuneration Committee of the Board of Directors appoints the chief executive and executive directors.

The Board of Directors of The Pennine Acute Hospitals NHS Trust has delegated responsibility to manage the charitable funds to the Charitable Funds Committee. The Director of Finance is responsible for the day-to-day management and control of the administration of the charitable funds and reports to the committee. The Director of Finance has particular responsibility to ensure that the spending is in accordance with the objects and priorities agreed by the committee and the Board; that the criteria for spending charitable monies are fully met; that full accounting records are maintained; and that devolved decision making or delegated arrangements are in accordance with the policies and procedures set out by the Board on behalf of the corporate trustee.

The committee monitors the performance of the external investment manager and ensures that the investment of funds is in accordance with its policy on ethical investment, for example by ensuring that investments are not made in companies involved in the manufacture of tobacco or armaments. The committee approves the appointment and terms of the investment manager. The investment manager is Brewin Dolphin who was first appointed from 1 April 2004. During 2014/15 the committee agreed to extend the appointment of Brewin Dolphin for a further 2 years until March 2017. The membership of the committee during 2015/16 was as follows:

Shauna Dixon Non-executive Director, Chair Riaz Ahmad Non-executive Director

Damien Finn Director of Finance (from September 2015)

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Brian Steven Deputy Chief Executive/ Director of Finance (retired June 15) Prof M Makin Medical Director (started 1 Mar 2016)

Dr A Sinniah Medical Director (until Feb 2016) Phil Haigh Head of Financial Control

Gavin Barclay Assistant Chief Executive The committee had 4 meetings in 2015/16 with attendance as follows:

Shauna Dixon

Riaz Ahmad

Damien Finn

Brian Steven

Prof M Makin

Dr A Sinniah

Phil Haigh

Gavin Barclay

4/4 2/4 1/3 1/1 1/1 3/3 4/4 4/4

4 Trustee induction and training

As part of their induction programme new executive directors of The Pennine Acute Hospitals NHS Trust are made aware of their responsibilities as Board Members. NHS Improvement (NHSI) is responsible for the appointment of chair and non-executives to NHS trusts and charities and has a process in place to provide ongoing support, mentoring, induction and training.

5 Strategic Objectives & Activities – Public Benefit

The charity’s overall objectives are as follows:

‘The trustee shall hold the trust fund to apply the income, and at their discretion, so far as may be permissible, the capital, for any charitable purpose or purposes relating to the National Health Service’

The trustee confirms that they have considered the Charity Commission’s guidance on public

benefit when reviewing the charity’s aims, objectives, plans and achievements.

Within the main charitable registration a number of separate registrations (special purpose charities) are listed covering the constituent health bodies within the group registration. The objects of each listed charity provide for the funds to be applied for any charitable purpose relating to the NHS and then proceed to earmark the fund for a particular health body/area reflecting the origin of the fund.

The names and objectives are as follows:

Pennine Acute Hospitals NHS Trust General Fund (“Pennine Acute Hospitals Charity”) For any charitable purpose or purposes relating to the NHS wholly or mainly for The Pennine Acute Hospitals NHS Trust

Bealey Community Hospital General Charitable Fund (Bury community services) For any charitable purpose relating to the NHS wholly or mainly for the Bealey Community Hospital

Bury Community General Charitable Fund (Bury community services) For any charitable purpose or purposes relating to the NHS wholly or mainly for the Bury Community Community Services General Fund (Oldham, Heywood & Middleton/Rochdale community services) For any charitable purpose or purposes relating to the NHS wholly or mainly for the community service

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Pennine Acute Hospitals NHS Trust (Expendable Funds) Common Investment Fund To combine the investments and moneys belonging to the charities and representing expendable funds into one pooled fund. (This registration facilitates the pooling of the investments). The charity is funded by donations and/or legacies received from patients, their relatives, the general public and other organisations. The overall strategy of the charity is to provide support to the respective organisations by the following means:

Patients’ expenditure Purchase of items of equipment, provision of services and the provision

of facilities not normally provided or in addition to the normal NHS provision.

Staff expenditure a) motivation of staff by improving staff facilities and by providing

services that improve staff wellbeing b) education of staff by providing education over and above what would

normally be provided or in addition to the normal NHS provision.

Medical Research To provide funds in support of research projects which are of benefit to the NHS.

Whilst respecting the wishes of donors of designated unrestricted funds the corporate trustee has ultimate discretion to apply charitable funds where service changes have taken place or it is impractical to maintain the separate designated fund. Where the wishes of donors of restricted funds cannot be met the advice of the Charity Commission is sought.

6 Relationships with Related Parties/External Bodies

The charity maintains close links with staff and patients within the related health bodies and their hospitals and community. This is a key part of the Charitable Fundraising Manager’s role.

Close links are also maintained with individual hospital Leagues of Friends, RVS (formerly WRVS), hospital radios, MedEquip4kids and other voluntary organisations of which there are many. The charity is pleased to work with all interested parties in the provision of charitable support to the related health organisations and hospitals.

The trustee of the Pennine Acute Hospitals Charity would like to express their sincere thanks for all the generous donations received over the last year and the charitable work undertaken by all individuals and organisations. Charitable donations contribute greatly, enhancing the services that we are able to provide across the Trust. The Trust and Charity benefits significantly from the work and contribution of volunteers across all hospitals who give up their time freely to assist in the services provided. Their contribution is immeasurable and, therefore, the financial statements do not contain a financial measure of their contribution.

7 Review of the Finances, Achievements and Performance of the Charitable Funds

The strategy of the charity is to support its related constituent bodies by providing funds that provide a public benefit to patients, staff and users of the services. The Pennine Acute Hospitals Charity accounts for 100% of funds held within the main charity. The charity relies upon the generosity of the public, patients, their relatives, volunteers and other donors who are familiar with or have experienced the care of the NHS and hospitals or who are sympathetic and generous in their support of their local NHS service.

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The trustees’ specific objectives for the charity in 2015/16 were:

o To protect the value of the charitable funds in view of the challenging economic circumstances and consequent effect on the value of investments held. Where possible the charity will finance expenditure from income received to minimise the need to sell investments at a low point in investment market conditions. Comment: Since April 2015 the value of investments has decreased by £182k. This was offset against the unrealised gain from the last 3 years (£427k) which had been held in reserve as cushion. At this moment in time, the balance of the reserve is £95k. During the year, the committee agreed to release £150k of the reserve to support the Trust and the charity restructured the investment portfolio with Brewin Dolphin to release approximately £550k in cash to finance spending decisions. Working capital (bank plus debtors less creditors) was £170k at the end of the year.

o To encourage and support fundraising appeals to assist services and developments across the Trust. Comment: Medequip4kids continue to support the Trust including the recently extended or refurbished A&Es at ROH and FGH. Think Floyd and Link4Pink are well established and continue to raise funds for their areas. A variety of smaller fundraising appeals/activities continue to be undertaken. Shelley Owen, Charitable Fundraising Co-ordinator started in January 2015 and has initiated a number of measures to encourage greater fundraising.

o To review the commitments facing the general fund each year.

Comment: The commitments are reviewed at each meeting of the committee. At the end of the year, the general fund was sufficient to meet existing commitments and reserves until the end of 2016/17.

Overall, charitable funds have reduced by £754k from £3,404k at the end of last year to £2,650k at the end of March 2016. Total incoming resources were £362k; total resources expended £934k and net loss on investments £182k.

Of income, £136k was received from donations, £83k received from legacies and £143k received from investments. Of expenditure, £761k was spent on patients’ amenities, £44k on staff education and welfare, £13k on investment management costs, £34k on fundraising costs and £82k was transferred to Pennine Care NHS Foundation Trust Charity to enable them to manage their own funds.

The net loss on investments of £182k relates to the realised net loss of £110k and unrealised net loss of £72k arising from the revaluation of the investment portfolio at the end of the year.

Individual fund holders are responsible for the day to day management of charitable funds and the Trustee relies on the fund holders to ensure the effective use of those charitable funds earmarked for their clinical activity or area by applying their local or specialist knowledge.

Further information on resources spent is as follows:

Patients Amenities The majority of expenditure has been on medical equipment from general and designated funds. The largest item of expenditure in year was on electric profiling beds of £493k. In addition, the general fund supports the Hospital Arts project each year (2015/16 £34k) providing pictures, murals and other artwork throughout the hospitals. Also £40k was spent on a Digital Therapy System to support patients with dementia.

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Staff Education & Welfare The majority of staff education and welfare expenditure is on courses and conferences across a range of service areas and specialties. In 2015/16, the charity supported the Trust’s Staff Awards event with a contribution of £16k.

Fundraising Costs Of this, £27k relates to staff costs supporting various fund raising activities throughout the Trust.

8 Future Plans

The trustee does not expect any significant changes in the objectives of the charity in the forthcoming year and intends to continue to preserve funds where possible given the current economic climate. The objectives for 2016/17 are the same as last year with the addition of a specific objective to protect the reputation of the charity:

To protect the value of the charitable funds in view of the challenging economic circumstances and consequent effect on the value of investments held. Where possible the charity will finance expenditure from income received to minimise the need to sell investments at a low point in investment market conditions

To encourage and support fundraising to assist services and developments across the Trust

To review commitments facing the general fund

To promote and protect the reputation of the charity Links continue to be forged with charities in the locality and in particular with those who are directly linked to the Trust. Links are currently in place on the charity webpage to MedEquip4Kids, The Royal Oldham Hospital League of Friends, The Blossom Appeal and Rochdale Heartbeat Appeal.

9 Investment Policy and Performance

The trustee has adopted a low to medium risk profile. 50% of funds will be held in low risk investments and 50% in medium risk investments. The charity will maintain a balance in its own bank account (Government Banking Service GBS) and invest the balance in a portfolio managed by Brewin Dolphin. The following are extracts from the statement of investment principles for the portfolio managed by Brewin Dolphin:

- The Charity portfolio has a low to medium risk profile - The overall investment objective is for a balance between income and capital growth - Specifically a 40:60 ratio of low to medium risk - The equity element of the portfolio will tend to be invested in the larger constituents of the

FT All Share Index - The Charity has no specific income requirement - No investments are permitted in companies involved in the manufacture of armaments or

tobacco products

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The investments returned a loss of £182k on a portfolio valued at £2,496k as at 31 March with an estimated income yield of approximately £143k.

The performance of the investments is reviewed on a regular basis in comparison with suitable benchmarks (British Government Securities and FTSE 100). Overall the performance was under the benchmark as follows:

Changes in value 2015/16 : Q1 Q2 Q3 Q4 Total

% % % % %

Investment Portfolio (2.51) (4.01) 2.95 1.48 (0.52)

Benchmark (3.46) (2.89) 1.50 2.01 (0.71)

10 Reserves Policy (fund balances)

The trustee has established a reserves policy as part of their plans to provide medium term support to Pennine Acute Hospitals NHS Trust in compliance with charity legislation and good practice.

The trustee calculates the reserves as that part of the charity’s unrestricted income funds that is freely available after taking into account designated funds which have been earmarked for specific purposes. The reserves currently stand at £40k and are calculated as follows:

£000s

Total unrestricted funds 1,572 Less designated funds 1,532 Total reserves 40

Within the £1,572k unrestricted funds is the General Fund with a balance of £88k. Designated

funds are service specific and considered to be committed. Of the general fund £48k is earmarked for specific commitments leaving a balance of £40k available as free reserves.

The trustee intends that designated funds are spent within a reasonable period of receipt. The trustee foresees a need only to maintain reserves as follows:

£000s Provision for 1 year normal charitable expenditure 47 Estimate of unrestricted investment income less admin costs (24) 3 months management and administration costs 13 Total reserve requirement 36

Available reserves exceed the requirement by £4k. The position is kept under review by the committee during the year.

The trustee continues to review the 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 designated fund(s). In the event that the need identified for any designated funds no longer exists, those funds will be redirected to the general fund.

This policy is reviewed each year.

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11 Risk Review

The charity’s risk profile and controls to mitigate risks are reviewed by the committee each year. The last review was undertaken in March 2016.

The charity is not a complex charity. It receives donations and legacies from the general public who, generally, have had some connection, either directly or indirectly, with the services that The Pennine Acute Hospitals NHS Trust provides. Payments are made from the charity’s funds in line with its objects i.e. “For Any Charitable Purpose or Purposes Relating to the National Health Service”.

Fundraising is undertaken by individuals or groups in the name of the charity. Procedures are in place to ensure such fundraising is acknowledged by the charity and that individuals or groups are advised to adhere to good practice required by charity law. The charity does not employ staff of its own (services/staff are provided by the NHS Trust and recharged to the charity) nor own any assets other than investments and cash. Systems and procedures have been implemented to the same standard as the Pennine Acute Hospitals NHS Trust and are subject to regular review and audit both internal and external. This includes arrangements for the prevention and detection of fraud. The Trust and charity are mindful of the involvement of major donors and celebrities in light of national events in recent years for example, the Savile enquiry. The charity was exposed to media enquiries and headlines towards the end of 2015 in relation to the support provided by the charity to the Trust’s staff awards event. The charity received an enquiry from the Charity Commission and responded providing a full explanation and rationale for the support provided. The Charity Commission were satisfied with the charity’s response. The objectives of the charity have been amended to include a specific objective to promote and protect the reputation of the charity.

The trustee has engaged a reputable longstanding investment management company (Brewin Dolphin) to manage the charity’s investment portfolio. The company is authorised and regulated by Financial Services Authority.

Other than investment risk, the charity is not exposed to major risks which would severely impact on operational performance or achievement of aims and objectives. Brewin Dolphin works within the low to medium investment strategy determined by the trustee and provides regular reports on the performance and management of the investment portfolios. Shauna Dixon Chair of the Charitable Funds Committee on behalf of the Corporate Trustee

October 2016

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12 STATEMENT OF TRUSTEES' RESPONSIBILITIES IN RESPECT OF THE TRUSTEES’ REPORT AND THE FINANCIAL STATEMENTS

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 excess of expenditure over income for that period. The trustees have elected to prepare the financial statements in accordance with FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland.

In preparing these financial statements, generally accepted accounting practice entails that the trustees:

select suitable accounting policies and then apply them consistently;

make judgements 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 [and rules], 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 [and the rules] 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.

The trustees are responsible for the maintenance and integrity of the financial and other information included on the charity’s website. Legislation in the UK governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

By Order of the Trustees

S Dixon Chair of the Charitable Funds Committee D Finn

Trustee Date: October 2016

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13 INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF PENNINE ACUTE HOSPITALS CHARITY AND OTHER RELATED CHARITIES

We have audited the financial statements of Pennine Acute Hospitals Charity for the year ended 31 March 2016. The financial reporting framework that has been applied in their preparation is applicable law and UK Accounting Standards (UK Generally Accepted Accounting Practice), including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland. This report is made solely to the charity’s Trustee as a body, in accordance with section 145 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 Trustee 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 Trustee’ Responsibilities 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 145 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 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 31 March 2016 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 Trustee’ Annual Report is inconsistent in any material respect with the financial statements; or

the charity has not kept sufficient accounting records; or

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the financial statements are not in agreement with the accounting records; or

we have not received all the information and explanations we require for our audit.

Andrew Smith for and on behalf of KPMG LLP, Statutory Auditor Chartered Accountants 1 Peters Square Manchester M2 3AE

19th October 2016

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14 STATEMENT OF FINANCIAL ACTIVITIES (SoFA) for the year ended 31 March 2016

2015/16 2014/15 Notes Unrestricted

Funds Restricted

Funds Total

Funds Total

Funds £000s £000s £000s £000s Income and Endowments from Income from donations and legacies 3 Donations 115 21 136 139 Legacies 28 55 83 133 Income from Investments

102 41 143 150

Total Income and Endowments 245 117 362 422

Expenditure on Raising Funds 8 5 13 14 Expenditure on Charitable activities

5

Patients amenities 733 28 761 372 Staff Education & Welfare 39 5 44 110 Research 0 0 0 22 Fundraising costs 22 12 34 11 Transferred to Pennine Care 82 0 82 0

Total Expenditure 884 50 934 529

Net gains / (losses) on investments

(129)

(53)

(182)

64

Net Income / (Expenditure) (768) 14 (754) (43) Reconciliation of funds Fund balances brought forward 11 2,340 1,064 3,404 3,447

Fund balances carried forward 1,572 1,078 2,650 3,404

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15 BALANCE SHEET as at 31 March 2016

2015/16 2014/15 Notes Unrestricted

Funds Restricted

Funds Total

Funds Total Funds

£000s £000s £000s £000s Fixed Assets

Investments 8 1,487 1,009 2,496 3,293

Total Fixed Assets

1,487

1,009

2,496

3,293

Current assets

Debtors

9

32 4

36

34

Cash at bank and in hand 9 577 86 663 234

Total Current assets

609

90

699

268

Current liabilities

Creditors : falling due within

one year 10 524 21 545 157

Net Current Assets/(Liabilities) 85 69 154 111

Total Net Assets

1,572

1,078

2,650

3,404

Funds of the Charity

11

Restricted 0 1,078 1,078 1,064 Unrestricted 1,572 0 1,572 2,340

Total Charity Funds

1,572 1,078 2,650 3,404

Page 20

16 NOTES TO THE ACCOUNTS 1. ACCOUNTING POLICIES a. Basis of Preparation

The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standards applicable in the UK and Republic of Ireland (FRS 102) issued on 16 July 2014 and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011 and UK Generally Accepted Practice as it applies from 1 January 2015. In preparing the accounts, the Trustee has considered whether in applying the accounting policies required by FRS102 and the Charities SORP FRS 102 a restatement of comparative items was needed. No restatements were required relating to the previous year’s accounts, however the necessary changes in terms of presentation and disclosures have been made to bring the report in line with the new SORP requirements. The Corporate Trustee considers that there are no material uncertainties about the charity’s ability to continue as a going concern. There are no material uncertainties affecting the current year’s accounts.

b. Funds Structure

Endowment Funds are funds where the capital is held to generate income for charitable purposes with no discretion to expand the capital. The Pennine Acute Hospitals Charity no longer has any funds on this type. Restricted funds are funds which are to be used in accordance with specific restrictions imposed by the donor.

Unrestricted income funds comprise those funds which the Trustee is free to use for any purpose in furtherance of the charitable objects. All unrestricted funds are designated funds, where the donor has not made a binding restriction on the donation but where the trustees, at their discretion, have created a fund for a specific purpose. The major funds held in each of these categories are disclosed in note 11.

c. Income

All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably. Donations, are recognised when the charity has been notified in writing of both the amount and settlement date. In the event that a donation is subject to conditions that require a level of performance before the charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met. Or the fulfilment of those conditions will be fulfilled in the reporting period. Gifts in kind are valued at estimated fair market value at the time of receipt.

d. Incoming Resources from Legacies

Legacy gifts are recognised on a case by case basis following the granting of probate when the administrator / executor for the estate has communicated in writing both the amount and settlement date. In the event that the gift is in the form of an asset other than cash or financial asset traded on a recognised stock exchange, recognition is subject to the value of the gift being reliably measurable with a degree of reasonable accuracy and the title to the asset having been transferred to the charity. Interest on funds held on deposits is included when receivable and the amount can be measured reliably by the charity, this is normally upon notification of the interest paid or payable by the bank. Dividends are recognised once the dividend has been declared and notification has been received of the dividend due. This is normally upon notification by our investment advisor of the dividend yield of the investment profile.

Page 21

e. Resources Expended

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 committing the charity to the expenditure. Contractual arrangements are recognised once goods or services are supplied.

f. Taxation The 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 company for UK corporation 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.

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

g. Fund Raising costs

The costs of generating funds consist of investment management costs and certain legal fees.

h. Charitable Activities

Costs of charitable activities comprise all costs incurred in the pursuit of the charitable objects of the charity. These costs comprise direct costs and an apportionment of overhead and support costs as shown in note 4.

i. Allocation of Support and Governance Costs

Support costs have been allocated between governance costs and other support costs. Governance costs comprise all costs involving the public accountability of the charity and its compliance with regulation and good practice. These costs include costs related to statutory audit and legal fees. Governance costs and support costs relating to charitable activities have been apportioned based on the proportion of total spend. The allocation of support and governance costs analysed in note 4.

j. Fixed Asset Investments

Investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing quoted market price. The statement of financial activities includes the net gains and losses arising on revaluation and disposals throughout the year. The Trust does not acquire put options, derivatives or other complex financial instruments. The main form of financial risk faced by the charity is that of volatility in equity markets and investment markets due to wider economic conditions

k. Realised Gains & Losses

All gains and losses are taken to the Statement of Financial Activities as they arise. Realised gains and losses on investments are calculated as the difference between sales proceeds and opening market value (purchase date if later). Unrealised gains and losses are calculated as the difference between the market value at the year end and opening market value (or purchase date if later).

Page 22

2. RELATED PARTY TRANSACTIONS

The Pennine Acute Hospitals NHS Trust is the main beneficiary of the charity. The charity has provided funding to the NHS Trust for approved expenditure made on behalf the charity. This funding amounted to £913k (2014/15 £526k). During the year none of the members of the NHS Trust Board or senior NHS Trust staff or parties related to them were beneficiaries of the charity. Neither the Corporate Trustee nor any member of the NHS Board of Directors has received honoraria, emoluments or expenses in the year. Nor has the Trustee purchased trustee indemnity insurance.

3. INCOME

Unrestricted Funds £000

Restricted Funds £000

2015/16 Total £000

2014/15 Total £000

Donations from individuals Legacies

115 28

21 55

136 83

139 133

Total

143

76

219

272

4. ALLOCATION OF SUPPORT COSTS AND GOVERNANCE COSTS

Once allocation of overheads has been made to Governance Costs, the balance of overhead and support costs is apportioned across charitable activities.

Allocation and Apportionment

Governance Costs

Basis of Apportionment

Residual for Apportionment

£000

2015/16 Total £000

Salaries and Related Costs External Audit Cash Transit Security Other

Value of charitable expenditure Governance Value of charitable expenditure

26 5 1 1

26 5 1 1

Total

33

33

Patients amenities &

welfare £000

Staff education &

welfare £000

Research

£000

Fundraising

£000

2015/16 Total

£000

Salaries and related costs Others

25 6

1

1

0 0

0 0

26 7

Total

31

2

0

0

33

Page 23

5. ANALYSIS OF CHARITABLE ACTIVITIES The charity undertook direct charitable activities, mainly purchasing equipment for The Pennine Acute Hospitals NHS Trust in support of a range of services.

Activities Undertaken

Directly £000

Support Costs

£000

2015/16 Total

£000

2014/15 Total

£000

Patients Amenities Staff Education and Welfare Research Fundraising Other (tfr to Pennine Care)

733 39 0

22 82

28 5 0

12 0

761 44 0

34 82

372 110 22 11 0

Total

876

45

921

515

6. ANALYSIS OF STAFF COSTS

2015/16 Total £000

2014/15 Total £000

Salary costs Pension costs NI costs

42 6 6

29 4 4

Total

54

37

Notional whole time equivalent (WTE)

1.83

0.90

7. AUDITOR’S REMUNERATION

The auditor’s remuneration of £5,130 related solely to the audit with no other additional work undertaken

8. FIXED ASSET INVESTMENTS

Movement in Fixed Asset Investment

2015/16 Total £000

2014/15 Total £000

Market Value Brought Forward Add: Additions to Investments at Cost Less Disposals at Carrying Value Add Net Gain(Loss) on Revaluation Add change in cash balance

3,293 779

(1,515) (73) 12

3,231

91 (96) 67 0

Market Value as at 31 March

2,496

3,293

Page 24

All investments were listed on a UK stock exchange or in companies incorporated in the UK. Therefore all investment assets are treated as investment assets in the UK. No individual shareholding or investment was greater than 5% of the portfolio.

Risk Strategy in terms of investments held in line with investment managers

In line with the objectives of the charity, it is essential that the correct balance of risk and reward is conveyed to the Investment Managers running the charity portfolios. The view of the Charitable Funds Committee is that the risk levels should be based on low and medium risk. Low Risk The charity is prepared to accept a small degree of short term volatility, in the hope of producing slightly higher returns. The charity seeks to reduce the risk of returns being exceeded by inflation, while retaining a consistent pattern of returns and accepts the possibility of frequent but minor fluctuations in capital value. Medium Risk The charity is prepared to accept risk of some short term volatility in the pursuit of returns over the medium to long term, which should maintain capital after the effects of inflation and is aware that more significant fluctuations in capital are possible. Interest Rate Risk The interest rate payment on the Fund will reflect the rates available from top quality borrowers. The rate has remained constant over the last quarter of the financial year 201/16, reflecting stable conditions in commercial money markets. Liquidity Risk This is anticipated to be low as the Fund holds a diversified portfolio but one biased towards real assets including global equities, property and infrastructure, and with only modest exposure to bonds and cash. Currency Risk There is an element of currency risk as there are some overseas equities within the portfolio, but these should be minimal as the portfolio is diversified.

Portfolio Content

2015/16 Held in UK Total £000

2014/15 Held in UK Total £000

Quoted Investments – Brewin Dolphin Quoted Investments - CCLA Cash held on Deposit

2,335 149 12

3,139 154 0

Total

2,496

3,293

Page 25

9. ANALYSIS OF CURRENT ASSETS

Debtors under 1 Year

2015/16 Total £000

2014/15 Total £000

Brewin Dolphin – dividends due Gift Aid Pennine Acute Hospitals NHS Trust Legacies and Donations

9 2 0 25

16 0 12 6

Total

36

34

Analysis of Cash

2015/16 £000

2014/15 £000

Government Banking Service

663

234

Total

663

234

10. ANALYSIS OF CURRENT LIABILITIES AND LONG TERM CREDITORS

Creditors Under 1 Year

2015/16 Total £000

2014/15 Total £000

Pennine Acute Hospitals NHS Trust Trade Creditors Brewin Dolphin fee Audit fee

40 497

3 5

49 98 3 7

Total

545

157

11. ANALYSIS OF CHARITABLE FUNDS

Analysis of Restricted funds

Balance at 1 April 2015

b/fwd £000

Income & Endowments

£000

Expenditure

£000

Gains and

Losses

£000

Fund C/Fwd

31 March16 £000

RL Gardner, NMGH Hospital Palliative Care, ROH Prostate Scanner, Link for Pink, ROH Oral Surgery, NMGH Other Restricted Legacies Unallocated Unrealised gain

383 72 29 73 149 232 126

16 3 1 24 6 67 0

(8) (4) (1) (22) (3) (12)

0

0 0 0 0 0 0

(53)

391 71 29 75 152 287 73

Total

1,064

117

(50)

(53)

1,078

Page 26

RL Gardner Grants funds for cancer research Hospital Palliative Care Palliative Care Unit for patients at the Royal Oldham Hospital Prostate Scanner/Appeal To purchase a scanner for use in the treatment of prostate cancer.

Link for Pink To raise funds for the Victoria Breast Unit at the Royal Oldham Hospital

Analysis of unrestricted and material designated funds

Balance at 1 April 2015

b/fwd £000

Incoming Resources

£000

Resources Expended

£000

Gains and Losses

£000

Fund C/Fwd

31 March16 £000

General Fund

320

63

(295)

0

88

Haematology Research Fund 127 4 (3) 0 128 NMGH Research Fund 87 0 0 0 87 Women’s & Children’s Appeal 75 0 (75) 0 0

Urology training & equipment 64 0 0 0 64 Leukaemia Fund Special Care Baby Unit Fund

62 48

0 14

0 (7)

0 0

62 55

Rochdale Educ’n Centre Fund Aids Research Fund

53 51

0 0

0 0

0 0

53 51

179 other Funds all less than £50,000 Unallocated Unrealised gain

1,152 301

164

0

(354) (150)

0

(129)

962 22

TOTAL

2,340

245

(884)

(129)

1,572

Pennine Acute Hospitals FGH - Fairfield General Hospital NMGH - North Manchester General Hospital RI - Rochdale Infirmary ROH - Royal Oldham Hospital