The Robert Jones and Agnes HuntOrthopaedic Hospital Troat Charity

Registered Chadty No. 1058878

OswestryShropshireSY10 7AG

Email: charitable. fvnds@rjah. nhs. uk

C~ib~C

Trustee's Annual ReportFor

The Robert 3ones & Agnes Hunt OrthopaedicHospital Charitable Fund for the year ending

31 March 2012

The Robert Jones and Agnes Hunt tarthopaedic Hospital Charitable Funds,Trustee's Annual Report 8 Accounts 2011-12

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Charity Registration No. 1058878

Independent Auditor'a Opinion

INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEE OF THF. ROBERTJONES AND AGNES HUNT ORTHOPAEDIC HOSPITAL CHARITABLE FUND

We have audited the financial statements of The Robert Jones and Agnes I lunt OrthopaedicHospital Charitable Fund for the year ended 31 March 2012 which comprise the Statement ofFinancial Activities, the Balance Sheet and the related notes 1 to 13. '1'he financial reportingframework that has been applied in their preparation is applicable law and United KingdomAccounting Standards (United Kingdom Generally Accepted Accounting Practice).This report is made solely to the charity's trustee, as a body, in accordance with section 144of the Charities Act 2011 and regulations made under section 154 of that Act. Our audit worikhas been undertaken so that we might state to the charity's trustee those matters we arcrequired to state to it in an auditor's report and for no other purpose. To the fullest extentpermitted by law. we do not accept or assume responsibility to anyone other than the charityand the charity's trustee as 6 body, for our audit work, for this report, or for the opm tons wehave formed.

Respective responsibilities of trustee aud auditor

As explained more fully in the Trustee's Responsibilities Statement, the trustee is responsiblefor the preparation of the financial statements which give a true and fair view.We have been appointed as auditor under section 144 of the Charities Act 2011 and report inaccordance with regufations made under section 154 of that Act. Our responsibi! ity is to auditand express an opinion on the fmancial statements in accordance with applicable law andInternational Standards on Auditing (UK and Ireland). Those standards require us to complywith thc Auditing Practices Board's Ethical Standards for Auditors.

Scope of the audit of the financial statements

An audit involves obtaining evidence about the amounts and disclosures in the financialstatements sufficient to give reasonable assurance that the financial statements are free frommaterial misstatement, whether caused by fraud or error. This includes an assessment of:whether the accounting policies are appropriate to the charity*s circumstances and have beenconsistently applied and adequately disclosed; the reasonableness of significant accountingestimates made by the trustee: and the overall presentation of the financial statements. Inaddition, we read all the financial and non-fmancial information in the annual report toidentify material inconsistencies with the audited financial statements. If we become aware ofany apparent material misstatements or inconsistencies we consider the implications for ourreport.

Opinion on financial statements

ln our opinion the financial statements:~ give a true and fair view of the state of the charity s affairs as at 31 March 2012. and

of its incoming resources and application of resources, for the year then ended;~ have been properly prepared in accordance with United Kingdom Generally Accepted

Accounting Practice; and~ have been prepared in accordance with the requirements of the Charities Act 2011

and the trust deed.

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The Robert Jones und Agnes Hunt Orthopaedic Hospital Charitable Funds,Trustee's Annual Report Si Accounts 20t t-t2

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 20 I lrequires us to report to you if, in our opinion:

~ the information given in the Trustee's Annual Report is inconsistent in any materialrespect with the financial statements; or

~ sufficient accounting records have not been kept; or~ the financial statements are not in agreement with the accounting records and return;

oi'

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

Detoitte LLPChartered Accountants and Statutory AuditorBirmingham, UK

30a November 20 I 2

Deloitte LLP is eligible to act as an auditor in terms of section! 2'l 2 of the Companies Act2006 and consequently to act as the auditor of a registered charity.

The Robert 3ones and Agnes Hunt Orthopaedic Hospital Charitable Funds,Trustee's Annual Report a Accounts 2013-12

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Statement of Trustees' responsibilities in respect of the Trustees' Report andFinancial Statements

The trustees are responsible for preparing the Trustees' Annual Report and the financialstatements in accordance with applicable law and United Kingdom Accounting Standards(United Kingdom Generally Accep'ted Accounting Practice).

The law applicable to charities in England and Wales requires the trustees to prepare financialstatements for each finanoal year which give a true and fair view of the state of affairs of thecharity and of the incoming resources and application of resources of the charity for thatperiod. In preparing these finanaal statements, the trustees are required to:

~ select suitable accounting policies and then apply them consistently;

~ observe the methods and principles in the Charities SORP;

~ make judgments and estimates that are reasonable and prudent;

~ state whether applicable accounting standards have been followed, subject to anymatenal departures disclosed and explained in the financial statements; and

~ prepare the financial statements on the going concern basis unless it is inappropriateto presume that the charity will continue in business.

The trustees are responsible for keeping proper accounting records that disclose withreasonable accuracy at any time the financial position of the charity and enable them toensure that the financial statements comply with the Charities Act 2011, the Charities(Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are alsoresponsible for safeguarding the assets of the charity and hence for taking reasonable stepsfor the prevention and detection of fraud and other irregularities.

The trustees are responsible for the maintenance and integrity of the charity and finanualinformation included on the charity's website, Legislation in the United Kingdom governingthe preparation and dissemination of financial statements may differ from Iegislat'ion in otherjunsdictions.

Signed on behalf of the Trustees:

Russell Hardy, Chairman,

Date: 29 November 2012

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Ihe Robert 1ooes ahd Agnes Hunt Drthopaedic Hospital Charitable Funds,Trustee's Annual Report ter Accounts 2011-12

tsfessage from Corporate Trustee

2011/12 was a notable year both for the fundraising efforts of our donors and some of theexciting projects which have been supported by the chanty.

Our donors have hand-cycled from Lands End to john O'Groats, ridden their bikes acrossWales and solicited gifts for the hospital mstead of themselves at their weddings andbirthdays. On behalf of the Trustees I must thank everyone for their hard work andgenerosity.

During 2011/12 the chanty continued to support research projects aimed at benefitingosteoporosis and arthritis patients.

There have also been a number of small purchases which have provided extra comfort forour patients.

We are looking forward to 2012/13 which will see the charity making a significantcontribution towards the major scheme to redevelop part of the hospital, due for completionin early summer 2012 and which will have a positive impact on all of the hospital's patientsand visitors.

We are planning to actively raise funds for the charity and looking at launching an appeal toprovide facilities dedicated to turnour and cancer patients.

These are all made possible by the generous contribution of so many different people.So, thank you once again to everyone who contributed and to those who continue to supportus.

Russell Hardy, ChairmanOn Behalf of the Corporate Trustee

29 November 2012

The Robert )ones and Agnes Hunt Orthopaedic Hospital Charitable Funds,Trustee's Annual Report & Accounts 2011-12

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TRUSTEEcS REPORT

Forward

The corporate trustee presents the charity's Annual Report together with the AuditedFinancial Statements for the year ended 31 March 2012.

The charity's report and accounts relate to the funds administered for the public benefit byRobert Jones and Agnes Hunt Orthopaedic Hospital NHS Foundation Trust. The charitablefunds held are for the benefit of patients, their families and carers and the communitiesserved. The patients of Robert Jones and Agnes Hunt Orthopaedic Hospital NHS FoundationTrust are the main beneficiaries of the charity.

The charity has a corporate trustee; the Robert Jones 8r Agnes Hunt Orthopaedic HospitalNHS Foundation Trust, Listed below are the members of the NHS Trust Board who servedduring the financial year:

R HardyM DeanJ TurnerP JonesG LawesR ClarkeW Farrington-ChaddD JamesI McCallJ GrinnellN BellingerJ Downey

ChairmanNon Executive DirectorNon Executive DirectorNon Executive DirectorNon Executive DirectorNon Executive DirectorChief Executive OfficerDirector of OperationsMedical DirectorDirector of Finance, Contracting and PerformanceInterim Director of Nursing (until 4 March 2012)Director of Nursing (from 5 March 2012)

The Charitable Funds are registered with the Charity Commission (No. 1058878) inaccordance with the Charities Act 2011.

Reference and Administrative Detail

The main charity, The Robert Jones 8r Agnes Hunt Orthopaedic Hospital NHS Trust CharitableFund, Registered Charity No. 1058878, was entered on the Central Register of Charities on 28October 1996. The charity was renamed on 1 August 2011 as The Robert Jones and AgnesHunt Orthopaedic Hospital Charitable Fund following the change in status of the corporatetrustee to an NHS Foundation Trust.

Chantable funds received by the charity are accepted, held and administered as funds heldon trust for purposes relating to the health service in accordance with the National HealthService Act 1977, the National Health Service and Community Care Act 1990 and the NationalHealth Service Act 2006. These funds are held on trust by the corporate body.

The charity's Annual Report and Accounts for the year ended 31 March 2012 have beenprepared by the corporate trustee in accordance with Part 8 of the Charities Act 2011 and theregulations made thereunder; the Charities (Accounts and Reports) Regulations 2008 and theRegulatory Reform (Nation Health Service Charitable and Non-Charitable Trust Accounts andAudit) Order 2005.

The charity is constituted of an unrestricted general fund which is split into 23 designated subfunds and 3 restricted funds, a total of 26 funds as at 31 March 2012 (no change from 2010-11) and the notes to the accounts distinguish the types of fund held and disclose separatelyall material funds. The restricted funds were set up following the receipt of two legacies.

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The Robert Jones and Agnes Hunt Orthopaedic Hospital chantahie Funds,Truatee'S Annual Repart Sr ACCOuntS 2011-12

T~ru ee

The Robert Jones Br Agnes Hunt Orthopaedic Hospital NHS Foundation Trust is the corporatetrustee and the hospital Trust Board has devolved responsibility for the on-goingmanagement of the funds to the Charitable Funds Committee which administers the funds onbehalf of the corporate trustee. The Committee was formecf on 28 October 1996 and re-established following the change of the corporate trustee to NHS Foundation Trust status,The Charitable Funds Committee operates within the terms of reference and delegatedpowers set out by the trustee.

The names of those people, who served on the Charitable Funds Committee, as permittedunder regulation 16 of the NHS Trusts (Membership and Procedures) Regulations 1990, wereas follows:

R HardyJ TurnerR ClarkeW Farrington-ChaddJ Grinnell

ChairmanNon Executive DirectorNon Executive DirectorChief Executive OfficerDirector of Finance, Contracting and Performance

Non-executive members of the Trust Board were appointed by the NHS AppointmentsCommission and from 1 August 2011 they were appointed by the Council of Governors of theRobert Jones and Agnes Hunt Orthopaedic Hospital NHS Foundation Trust. Executivemembers of the Board are subject to recruitment by the NHS Trust Board, Members of boththe Trust Board and the Charitable Funds committee are not individual trustees under charitylaw but act as agents on behalf of the corporate trustee.

Princi al Charitable Fund Adviser to the Board

The Director of Finance, Contracting and Performance acts as the Principal Charitable FundAdviser to the Board, under a scheme of delegated authority approved by the corporatetrustee. He is responsible for ensuring that the funds are managed appropriately and withdue regard to their purpose and requirements.

The Trustee has delegated authorities for expenditure from charitable funds, both designatedand restricted, which are shown below:

Up to f500 per request

Up to E10,000 per request

Fund Advisor

Chief Executive or Director ofFinance

Up to 620,000 per request Chief Executive Lfr Director ofFinance

Up to E50,000 per request Charitable Funds Committee orbetween committee meetingsChief Executive and Director ofFinance in consultation with otherTrust Board members including atleast one Non-Executive Director

Over E50,000 per request Charitable Funds Committee eitherat a regular meeting or a meetingespecially called for that purpose

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The Robert Jones and Agnes Hunt Orthopaedic Hospital Chantable Funds,Trustee's Annual Report Iti Accounts 2lJ11-12

Princi al Addresses

OfliceCharitable Funds, Finance DepartmentThe Robert jones and Agnes Hunt Orthopaedic Hospital NHS Foundation TrustQswestryShropshireSY10 7AG

Principal Professional Advisers:

AuditorsDeloitte LLPFour BrindleyplaceBirminghamB1 2HZ

BankersGovernment Banking ServiceSouthern House 17'" Floor)Wellesley GroveCroydenCR9 1WW

SolicitorsHill DickinsonPearl Assurance House2 Derby SquareLiverpoolL2 9XL

Structure Governan and Mana m nt

In ils operation of the charitable funds, the corporate trustee has had regard to the chantyCommission's guidance on independence and established the Chaditable Funds Committee toassist in maintaining independence. It does this by ensuring that the use of charitable fundsis focused on the needs of the NHS patients, their carers and families.

All the funds held on trust as at the date of registration on 28 October 1996 wereunrestricted, The chanty's restricted funds were created subsequently following the receiptof two legacies. Subsequent donations and gifts received by the charity that are attributableto the original funds are added to those fund balances within the existing charity.

To assist the corporate trustee in the day to day rnanagernent of the unrestricted charitablefunds, the funds available for spending are allocated to designated funds within the generalfund related to the purpose of the donation or gift. For example, there are charitable fundsfor each ward, for some of the therapy departments such as Physiotherapy and OccupationalTherapy and for specific areas such as Arthritis and Rheumatism and the Spmal Injuries Unit.Where no specific area is indicated then the gift is allocated to the non-designated generalfund.

The charity's funds are invested and accounted for separately from other income received bythe hospital for the provision of healthcare. This is in accordance with the requirement of the2011 Charities Act.

The corporate trustee fulfils its legal duty by ensuring that funds are spent in accordance withthe objects of each fund and by designating the funds the trustee respects the wishes of ourgenerous donors to benefit patient care and advance the good health and welfare of patients,and the carers and staff who look aRer them.New Trust Board members, as agents for the corporate trustee, are committed to familiansethemselves with their responsibilities. In broad terms, trustees have a duty to ensurecompliance with charity law and accounting regulations set out by the Charity Commission; a

The Robert Jones and Agnea Hunt Orthopaedie Hospital Charitable Funds,Trustee's Annual Report a AccOunts 2011-12

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duty of prudence in ensuring that the charity remains solvent and income and property isapplied solely for the purposes held within the governing document; and they also have aduty of care to donors and potential donors.

Full use is made of Charity Commission guidance and support for trustees.

An induction pack is given to newly appointed members of the NHS Trust Board andCharitable Funds Committee which includes the governing documents of the charity, theterms of reference of the Charitable Funds Committee, the Trustee's Annual Report andAccounts and the Charity Commission booklet CC3, Being a trustee.

The accounting records and the day to day administration of the funds are dealt with by theFinance Department located at Robert Jones and Agnes Hunt Orthopaedic Hospital NHSFoundation Trust, Gobowen, Oswestry, Shropshire, SY10 7AG.

Charitable Funds Committee

Acting for the corporate trustee, the Charitable Funds Committee is responsible for the overallmanagement of the charitable funds. The Committee is required:

To manage the affairs of The Robert Jones and Agnes Hunt Hospital CharitableFund within the terms of its declaration of Trust and appropriate legislation.To manage the investment of funds in accordance with the Chadities Act 2011 andif necessary appoint fund managers to act on its behalf.To ensure funding decisions are appropriate and consistent with the Robert Jonesand Agnes Hunt Orthopaedic Hospital NHS Foundation Trust's objectives, to ensuresuch funding provides added value and benefits to the patients and staff of theRobert Jones and Agnes Hunt Orthopaedic Hospital NHS Foundation Trust abovethose afforded by the Exchequer funds.To receive regular reports on fundraising activities.To implement as appropriate, procedures and policies to ensure accountingsystems are robust, donations are received and recorded as instructed and that allexpenditure is reasonable and clinically and ethically appropriate.To approve the Annual Report and Accounts and to ensure that all relevantinformation is disclosed.Identify and consider the major risks to which the charity is exposed and reviewthe systems to mitigate those risks.

The Committee's full terms of reference are attached at Appendix 1,

The Charitable Funds Committee reviews the training needs of the Trust Board as agent forthe corporate trustee. They are committed to holding a formal training session and update oflegal and statutory requirements.

~Ri kM t

The major risks to which the charity is exposed have been identiTied and considered. TheCharitable Funds Committee has established a risk register which records these key risks, thesteps taken to mitigate them, and actions required. This register is reviewed by theCommittee as a standing agenda item and updated as requirecl.

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The Robert Jones and Agnes Hunt Orthopaedic Hospital Chantable Funds,Trustee's Annual Report e Accounts 2011-12

The most significant risks identified relate to the current economic climate and are:

~ The impact on the level of donations received~ Lower potential returns on funds held~ The loss of funds both through stock market performance or bank collapse

The charity has an Investment and Reserves Policy which was passed by the Committee andwill be reviewed annvally, This is discussed in greater detail in the Finance section.

Partnershi Workin an Networks

The Robert Jones ac Agnes Hunt Orthopaedic Hospital NHS Foundation Trust is a related partyby virtue of being corporate trustee of the chanty. By working in partnership with the Trust,the charitable funds are used to best effect. When deciding upon the most beneficial way touse charitable funds, the corporate trustee has regard to the main activities, objectives,strategies and plans of the Trvst. However, overriding this, the corporate trustee is requiredby the Charity Commission to ensure all decisions are made in the interests of the charity tofurther its charitable objects and that there is a clear and open process of decision making bythe corporate trustee.

The trustee safeguards the independence of the charity by ensuring that sound governancearrangements are in place, in line with gvidance issued by the Charity Commission.

We remain indebted to the work of the volunteers of the Robert Jones and Agnes HuntHospital League of Friends who raise thousands of pounds of funds each year.

Ob'ectives and Strate

The object of the charity as stated in the Declaration of Trust document is 'Any chantabiepurpose or purposes relating to the lflational Health Service wholly or mainly for the serviceprovided by Robert Jones and Agnes Hunt Orthopaedfc and Distnct Hospital NHS Trust. "Given this wide remit, the charity seeks in particular to add to or enhance the servicesprovided by the NHS whilst ensuring that the wishes of the donors are respected at all times.

The charity has an underlying duty and objective to ensure all donations are spent inaccordance with the wishes of donors and, consequently, specific svb funds have beencreated with a fund advisor from the relevant service or department appointed by the trusteeto ensure this objective is met.

The income to achieve this is mainly received from donations, legacies and interestreceivable. The main areas of activity are patient and staff welfare.

Generatmg income and achieving ovr objective involves all our partners including staff,patients and their families, carers, and the local community.

Grant Makin Poli

The use of our funds is restricted by the governing document which established the charityfor the purposes connected with the NHS. All grant requests have to be countersigned by therelevant Divisional Manager or Executive Director to confirm that expenditure would be in linewith the strategic objectives of the division and the Foundation Trust. Authorisation issubject to the delegated authority levels previously listed. Grants are normally made fromthe charity's unrestricted funds. These funds consist of two elements, the general fund andthe designated sub-funds of the general fund,

General Fund —constituted of gifts received by the charity where no particular preference asto its expenditure by donors. Any member of staff may apply for a grant from the general

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The Robert Jones and Agnes Hunt Oithopaedic Hospital Charitable Funds,Trustee's Annual Report ts Accounts 2011-12

fund, Typically this fund is used for areas with no or insufficient designated funds or forhospital wide events or purchases.

Designated Funds —these contain gifts where a wish was expressed to benefit a particularpart af the hospital or activity by the donor at the time the gift was made. Although theirnomination is noi binding on the trustee, the designated funds exist to enable the charity tohonour the wishes of aur donors without plaang restrictions on the chanty which might resultin the monies not being spent in a timely manner. Each fund has a fund advisor, usually theclinical lead or the ward manager, who makes recommendations on proposed grants. Whilstthese recommendations are not binding on the trustee, they are normally accepted.

Public Benefit Statement

In partnership with Robert Jones and Agnes Hunt Orthopaedic Hospital NHS FoundationTrust, the charity aims to:

~ enhance the provision of high quality patient care for the public benefit;~ support research in areas relevant to the hospital's activity and patients and to make

such research publicly available; and~ support the provision of healthcare free at the point of need and cares for the

patients, families, carers and staff by focusing on areas not covered ar fullysupported by central NHS funds.

These objectives and the activities described below fall within those set out in the CharitiesAct 2011 and meet the criteria for public benefit.

R view of Finances and Activities for 2011 12

Our ActivitiesThe focus of our charitable work is to advance patient care, firstly by funding equipment,facilities, therapies and training and secondly through supporting patients and their carersand families. During the year the charity continued to support a wide range of charitable andhealth related activities benefiting patients, their carers, their families and the hospital staffwho care for them. Funds were used to purchase goods and services over and above thoseprovided by the hospita! from central NHS funds. Further details are given under the patientWelfare and Amenities expenditure paragraph below.

In addition, gifts are often received fram patients or their families to thank the staff wholooked after them. This is reflected in the use of funds to enable staff to attend courseswhich are not normally funded by the NHS but will benefit patients such as counselling andlistening skills or conferences of a specialist interest or to access morale boosting events,facilities and amenities.

The charity also makes available funds to sponsor non-commercial research in areas whereour partner NHS Foundation Trust has considerable expertise with a view to developing newtherapies for treating and caring for patients. These projects refIect the nature of thedesignated funds they are funded from and are subject to the scrutiny of the Trust'sResearch Committee before they were approved. During 2011/12 the charity continued tosupport two research projects.

The General Fund receives donations and legacies that may be used for any charitablepurpose relating to the NHS. This flexibility has been used to fund staff recognition awardssuch as prizes for the "One hundred ideas in one hundred days" scheme which was runfollowing the hospital's authansation as an NHS Foundation Trust on 1 August 2011, staffwelfare expenditure such as a self-referral scheme for staff for physiotherapy and theinstallation and supply of water coolers in areas where drinking water is nat otherwisesupplied. The charity has also funded the digitalisation of medical records to improve access.

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The Robert Jones and Agnes Hunt Orihopaedic Hospital Charitable Funds,Trustee's Annual Report 5. Accounts 2011-12

Reserves

The charity's reserves policy takes note of the Charity Commission publication CC19 Charitiesand Reserves.

This publication defines reserves as being that part of a charity's unrestricted funds that isfreely available ta spend on any of the charity's purposes, This definition excludes restrictedincome funds, although holding such funds may influence a charity's reserve policy. Reserveswill also normally exclude amounts designated for essential future spending.

Charity law requires any income received by a charity to be spent within a reasonable periodof receipt and trustees should be able to justify the holding of this income as reserves.

The Trustees have established a "free" reserves target af 6125,000 to cover payment ofsupport costs far the charity and to allow grants for expenditure to be made in the context ofan uneven income flow.

The reserve is calculated as being that part of this charity's unrestricted funds that is freelyavailable after taking account of designated funds which have been earmarked for specificpurposes.

Calculation of reserves as at 31 March 2012

Total Funds

Less restricted

Less designated

Reserves

f000

1,293

-181

-971

141

The f141,000 held on reserve as at 31"March 2012 was marginally greater than the targetreserve of f129,000.

l~ttThe Trustees have adopted a prudent investment policy in the face of an uncertain financialclimate. The policy is also informed by cash flow requirements, in particular the expectationaf any significant expenditure or fundraising due to occur.

The Trustees have decided not to invest in equities and to place the funds an deposit, havingdue regard to the security rating of the investment bodies, with a view to maximising thereturn whilst maintaining security.

The Trustees have decided that if, in the future, funds were to be invested in equities noinvestment would be made in companies which derive a substantial amount of their profitfrom investment in tobacco, gambling or alcohol.

At the end of 2011/12 no funds were invested and all funds were held with the GovernmentBanking Service in the charity's current account.

The Robert Jones and Agnes Hunt Orthopaedic Hospital Chantabfe Funds,Trustee's Annual Report Ik Accounts 2011-12

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Movem ntin Funds

At the sta*of the year, 1 April 2011, the total fund balance amounted to E1,402, 540. Ofthis:

~ E1,213,796 related to unrestncted funds~ E188,744 related to restricted funds.

The total fund balance as at 31 March 2012 amounted to E1,292,777 which was a decreaseof E109,763 during the year. Of this:

~ E1,111,991 related to unrestricted funds, a decrease of E101,805~ E180,786 related to restricted funds, a decrease of E7,958.

Income

Total Income for the year was f217,141 compared with E347,494 for 2010-11, a reduction ofE130,353 which reflected the E136,472 reduction in legacy income,

Subscriptions and Donations;The charity received E66,485 from donations during 2011-12compared to E58,156 in 2010-11. These donations were ail received for the unrestricted funds. They came from a largenumber of grateful patients and their friends and families plus from generous individuals whoundertook fund raising events on behalf of the charity, The charity received 270 such giftsincluding:

~ A signiTicant donation designated to the Spinal Injuries Unit Activities Fund(Physiotherapy) from a long term patient who described how grateful she was for thededication, care and hard work of all the staff and the difference they had made toher life,

~ Funds received following the generosity of a former patient and his bride who askedfamily and friends to make a gift to the hospital rather than purchase weddingpresents.

~ Hard won funds raised by a paraplegic man who completed a 900 mile hand cyclefrom Lands End to John O'Groats with a friend, accurately calling it the "MadMission".

~ Nore funds raised the hard way from a sponsored bike ride across Wales, starting inGlandyfi and finishing in Middletown.

~ Another generous donor raised funds instead of receiving presents at a black tiebirthday bash.

In total there were 270 donations of various sizes but all gratefully received during 2011-12.

Legacies:The charity received legacies totalling E145,040 during 2011-12 compared to E281,512 in2010-11,

Income was received from 12 legacies; the amounts varied from E45,000 to E500 and wereall gratefully received.

All the legacies were allocated to unrestricted funds thus being available for the charity to usefreely to further its objectives and benefit the Trust's patients, their families and carers andthe Trust's staff.

The Rotrert Jones ahd Agnes Hunt Orthopaedic Hospital Charitable Funds,Trustee's Annual Report Sr Accounts 2rt11-12

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The charity recognises legacy income only once there is certainty that the incoming resources

will be received and the value of those incoming resources can be reliably measured.

The charity has a subscription with an agency which reviews Wills as they are released andalerts beneficiaries to the existence of potential legacies,

Interest:The Trust earned E5,616 in interest during 2011-12compared to E6,121 in 2010-11. Thisreflects the similar cash balances for both years.

~r«dit

During the year, the funds continued to support a wide range of charitable and health relatedactivities benefiting both patients and staff. In general they are used to purchase the veryvaried additional goods and services that the NHS is unable to provide. The main areas ofexpenditure were;

Research:Spending on research is aimed at benefiting future patients of the NHS. Monies from two ofthe designated funds were used for the continuation of two research projects.

Fund

Charles SaltArthritis 8r Rheumatism,

On oin Research Pro ectsproject

Osteo rosisRole of leukocytes in arthritis

Projected ExpenditureE0003630

Patient Welfare and Amenities:Total patient welfare expenditure for 2011-12 was E83,349 compared to E88,596 for2010-11. Purchases covered a wide range of equipment items from specialist beds andpatient hoists for the Spinal Injuries Unit to a specialist cot and mattress and outdoor playequipment for the Children's Unit. Other expenditure improved the patient environment andexperience and included the provision of Sky television subscription for the Spinal Injuriesand Children's Units, support for a trip to the Paralympics, toys and gifts for child patients.

Staff Welfare and Amenities:Total expenditure for 2011-12was E121,796 compared to E63,036 in 2010-11. Expendituremainly related to non-statutory training. The physio self referral scheme continued during2011-12 and has proved popular amongst staff and benefitted patients by helping the Trustsuccessfully reduce sickness days. This scheme has now been adopted by the Trust and willbe funded from Exchequer revenue sources in the future.

Other Grants Payable:Total expenditure for 2011-12was E9,448 compared to E11,190 in 2010-11 and includedlaptop computers for Spinal Injury consultants and the cost of a visit to the hospital byPrincess Alexandria who toured the TORCH facility which was built and equipped following asuccessful appeal by the charity.

Administration Costs:

SupportSupport costs for 2011-12 tol'alled E33,101, compared to E28,268 in 2010-11.The funds areadministered by Hospital staff, and a fixed proportion of their salary is charged to theCharitable Funds. Other operational costs of running the charity include bank charges and theannual charitable funds accounting software licence fee.

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The Robert 3ones and Agnes Hunt Orthopaedic Hospilal Charitable Funds,Trustee's Annual Report & Accounts 2011-12

Governance Costs and TransfersGovernance costs for 2011-12were E19,731, compared to 625,048 in 2010-11.These are thecosts associated with the governance arrangements and indude the proportion of timedevoted to the Charitable Funds by the Director of Finance and the External Auditor's fees.

For the designated non-restricted funds, the cost of governance is charged straight to theundesignated General Fund. For the restricted funds, their share of governance costs arecharged to each fund and then a transfer is made from the general fund to the restrictedfund for an amount equivalent to the i estricted fund's governance costs.

The transfer of f4,824 is the movement of funds from the unrestricted, General Fund, to therestricted funds in lieu of those administration charges which would have been borne directlyby the General Fund if they had been applied to non —restricted funds.

Present and Future Pro ects

The many changes in the NHS continue to shape the environment m which the charityoperates. The reconfiguration of services and plans for redesigning patient care to meet theneeds of the future will continue to influence the priorities for spending charitable funds.

Post year end a f600,000 contnbution was approved and made towards a majordevelopment being undertaken at the Trust. This is to improve the facilities for patients ontheir arrival at the hospital. It involves a new main entrance and reception complex in closeproximity to the outpatient and diagnostic facilities and relocating the patients' car park closeby the main entrance. This project was well on its way to completion as at 31 March 2012and opened in May. Conditional approval had been made subject to the successfulcompletion and opening of the facilities.

The charity will also be contributing to a new medical unit from restricted funds which wereoriginally set up following legacies received for the benefit of the arthritis and rheumatismpatients to be treated in the unit.

The Charitable Funds Committee has also discussed the approval of an appeal to raise fundsfor new facilities for cancer and tumour patients. This appeal will be set up subject toapproval of the relevant business case by the Trust Board and would be a significant projectfor the charity.

The Trustees continue to rewew the expenditure plans for the other designated funds.

Approved on behalf of the corporate trustee

Russell HardyChairmanRobert Jones 21 Agnes Hunt Orthopaedic Hospital rttHS Foundation Trust29 November 2012

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The Robert 2ones and Agnes Hunt Orthopaedic Hospitai Charitable Funds,Trustee's Annual Report S. Accounts 2011-12

Accounts

The Robert 3ones gt Agnes Hunt Orthopaedic Hospital Charitable Fund

Statement of Financial Activities for the year ended 31 March 2022

Note Unrestricted

Funds

E000

RestrictedFunds

EOOD

2011-12Total

FundsEOOD

2010-11Total

Funds

EOOO

Incoming resourcesVo4ntary Incame

Donations

legaciesSub Total V04ntary IncomeInvestment HcomeTotal incoming resources

66145

0 66 580 145 282

211 0 211. 3404 5 I 6 6

216 1 217 346

Resources expendedChaltable expenditure

Grants payable5uppart costsGovernance costs

Total resources expended

2.12.322

275271.1

3 313

2492825

2783316

14 327 302

Net (outgoing)/ tnconing resourcesTransfers*Movement in funds

(97)(5)

(102)

(13) (110) 445 0 0

(8) (110) 44

Fund balances brought forward at 31 March 20ii

Fund balances carried forward at 31 March 2012

*Transfer equates ta support cast ta restricted fuixls

Notes 1 ta 13 lorm part af these accounts

1,214

1 112

189 1,403 1,359

181 ~1293 ~1403

The Robert Jones and Agnes Hunt Orthopaedic Hospital Charitable Funds,Trustee's Annual Repart 8 Accoune 2011-12

Page 16 of 26

The Robert 3ones Bt Agnes Hunt Orthopaedic Hospital Charitable Fund

Balance Sheet as at 31 March 2012

Note Unrestncted

Funds

EOOD

Itestricted Total at 31 Total at 31Funds 31 March 2012 31 lvlarch 2011EOOD EOOD EQQD

Current AssetsDebtorsShort term investments and depositsCash at bank and m hand

Total Current Assets1 216

0 80

183 ~t4017

1,4DO

Creditors: Amounts falling duewithin one year 112 116 72

Net Current Assets/(Liabilities)

Total Assets less Current tjabilities I 112

Funds of the Charityincome Funds;

RestnctedUnrestricted

Total Funds

Bt8.3

01,112

1810

1811,112

1891,214

Signed

Date: 29 November 2012

The Robert Jones and Agnes Hunt Orthopaedic Hospital Charitable Funds,Trustee's Annual Report tk Accounts 201!.-12

Page 17 of 28

Notes to the Accounts

Note I Accounting Policies

Basis of Preparation

The charity's Trustee's Annual Report and Accounts for the year ended 3IMarch 2012 have been prepared on behalf of the corporate trustee inaccordance with Part 8 of the Charities Act 20II and the regulationsthereunder. Accounts have been prepared on an accruals basis in line withthe charities' Statement of Recommended Practice (SORP).

Accounting Convention

The financial statements have been prepared under the historic costconvention and in accordance with applicable United Kingdom accountingstandards and the charities' Statement of Recommended Practice"Accounting and Repo*ing by Charities" issued by the Charity Commission in?005 (as updated).

Incoming Resources

a) All incoming resources are included in full in the Statement of FinancialActivities as soon as the following three factors can be met:

i) entitlement —arises when a particular resource is receivableor the charity's right becomes legally enforceable;

ii) certainty —when there is reasonable cestainty that theincoming resource will be received;

measurement —when the monetary value of the incomingresources can be measured with sufficient reliability. Onceincoming resources have been recognised in the accounts,these will be apportioned across relevant funds on aconsistent and transparent basis.

b) Legacies

Legacies are accounted for as incoming resources once the receipt of thelegacy becomes reasonably certain. This will be once confirmation hasbeen received from the representatives of the estates that payment ofthe legacy will be made or property transferred and once all conditionsattached to the legacy have been fulfilled, or on cash receipt, whicheveris earlier.

Resources Expended

The charity's accounts are prepared in accordance with the accruals concept.All expenditure is recognised once there is a legal or constructive obligationto make a payment to a third party.

a) Grants payable

Grants payable are authorised in line with the delegated authority limitsof the Charitable Funds Committee and are payments made to thirdparties (including NHS bodies) in the furtherance of the charity's

Page IS of 26

The Robert Jones and Agnes Hunt Onbopaedic Hospital charrtable Funds,Truatee'S Annual Repert ttr ACCOuntS 2011-12

objective. They are accounted for on an accruals basis where theconditions for their payment have been met or where a third party has areasonable expectation that they will receive the grant.

b) Governance and Support Costs

Governance and Support costs are accounted for on an accruals basis.Governance costs are made up of an appropriate proportion of theChairman, Non Executive Directors and Director of Finance costs.Support Costs include the costs of staff administering the income andexpenditure of the charity and other expenditure incurred in the day today running of the charity.

c) l2esearch and Development Costs

These are accounted for on an accruals basis and are included in the"grants payable" expenditure line in the accounts.

Structure of funds

Where there is a legal restriction on the purpose to which a fund may bespent, the fund is classified in the accounts as a restricted fund. Other fundsare classified as unrestricted funds. Funds which are not legally restrictedbut which the agents of the trustee have chosen to earmark for set purposesare classified as designated funds. The major funds held within thesecategories are disclosed in notes 8.1 and 8.2.

Change in the Basis of Accounting

There has been no change in the basis of accounting during the year.

Cash Flow Statement

No Cash Flow statement is included as this is not required for charities whichfall below the "small company threshold. "

Pooling Scheme

The charity does not have an official pooling scheme,

Except where restricted funds are invested separately, all returns on anyinvestments are apportioned on an average funds balance basis to the valueof funds they relate to. The values of any separately invested funds arededucted from restricted funds values prior to apportionment, TheCharitable Funds Committee believes this to be a fair and consistentapproach. Any gains or losses made on the funds invested separately forrestricted funds are solely allocated to the relevant restricted fund,

Short Term Investments and Deposits

The methodology used to split the value of short term cash investmentsbetween restricted and unrestricted funds is the same as detailed above.

Debtors/Creditors

The charity adopts the accruals concept to the calculation of all debtors andcreditors.

The Robert 3ones and Agnes Hunt Orthopaedic Hospital Chantable Funds,Trustee's Annual Report 5 Accounts 2011-12

Page 19 of 26

Provisions/Commitments

The charity adopts the accruals concept to the calculation of all commitmentsand provisions in the accounts, Grant commitments are recognised whereconstructive obligations arise which result in a payment being unavoidable,

Plans for future expenditure where there is no such obligation are notcommitments in accounting terms and have not been included in theseaccounts. However, these plans for future expenditure are included on fundstatements and in reports to the Charitable Funds Committee where they areconsidered useful.

Note 2 Detail of Resources Expended

2.1 Ikants Payabte:

Unrestricted

Funds

E'000

Restricted

Funds

EOOD

Total2011-12

FundsEOOD

Total2D1D 11

Funds

EDDD

Patients welfare and amer!liesStaff weitare and amenibesResearch & DevelopmentOther

83119

6'-i

9275

83122649

3 276

896386!.1

249

2.2 !governance Costs Uhreetn dadFunds

EOOD

Restncted

Funds

EOOD

Total2011-12

FundsEOOD

Total2010-11

Funds

EOOD

Salary RechargesAudit Fees

106

1411

5 16 26

2.3 Support Costs UnrestrictedFunds

EOOD

ResthctedFunds

Total costsFunds

2011-12EDOD

Total costsFunds

2010-11EOOD

Staff RechargesOther

261

321

27

27 33 28

The Robert Jones and Agnes Hunt Orthopaedic Hospital Charitable Funds,Trustee's Annual Report & Accounts 2011-12

Page 20 of 26

Note 3 Analysis of Total Resources Expended

Costs ofActivities forCharitableObjectives

EOOO 6000 EOOO

Support GovernanceCosts

Total2011-12

6000

Total2010-11

f000Bought-in servicesfrom NHS

Other0

27832

1

1010

42286

90212

278 33 20 328 302

Note 4 Analysis of Gross Income From Investments

Total grass income frain investments

Interest received on cash held

Held

in UK

EOOO

6

Held

outside UK

EOOO

0

2011-12Total

EOOO

6

2010-11

Total

EOOO

66 6

Note 5 Analysis of Debtors

Amounts falling due within ane year:

Accrued income

Total debtors falling due within one year

31 March 2012 31 March 2011EOOO 6000

6 78 7

Note 6 Analysis of Creditors

Amounts felling ilue within ane year:

Trade creditorsAmounts due to RIAH NHS Foundation Trust

for payments on charity's behalfTotal creditors falling due within one year

31 March 2012 31 March 2011EOOO f000

17 36

99 34116 72

The charity holds no creditors due after more than one year.

Note 7 Endowment Funds

The charity holds no endowment funds.

The Robert 3ones and Agnes Hunt Qrthopaedic Haspitel Charitable Funds,Trustee's Annual Report & Accounts 2011-12

Page 21of26

Note 8 Analysis of Funds

The trustee has set a closing balance of 5% or above of total unrestricted funds as thethreshold for reporting matenal designated funds. In addition, the General Fund isdisclosed.

B.1 Restricted ftrnds

Materul funds

Balance incoming Resources Transfers Balance

31 March Resaurces Expended 31 March2011 2012EOOD EOOD EDDD EOOD f000

A Ercafi Ward (Resincted)

8 Arlhnbs & Rhuemabsm(Restarted)

C MCSI (Restricted)

29

33

127

0 (1) 1 290 (2) 1 32

1 (11) 3 120

Total 189 1 14 5 181

8.2 Details of materia! funds — restricted funds

Msme Of fund Description of the nature and purpose of each fund

A brcall Ward (Restricted) Legacy received in 2006-D7 specified funds ta be split50i'50 between Ercafi Ward and Arthnbs and Rheumatismto be used as they saw lit. Fund Balance as at 31 March2012 is E 28,548. This fund is lo be fully ublised in 2D12-t3 la Contribute to the new medical unit where farmerErcall Ward pal'eels are now treated

8 Arthntis & Rheumabsm (Resiricted) Legacy received in 2DD6-t37 specified funds lo be split50:50 between Ercafi Ward and Arthnbs and Rheumahsm.Fund Balance as at 31 March 2D12 is E31,977. This fundis to be fully ulilised in 2012-13 ta contribute to the newmedical unit where former Ercall Ward arthritis andrheumatism pabenls are now treated.

C MCSI (Restricted) Fund created during 2007-08 fallowing a legacy ~eceivedin 2007-08 which speafied fund to be used for the benefitof spinal injuries patients m MCSI. Fund balance as at 31March 2012 is E 120,261. Various plans to utilise this fundare ongoing.

The Robert Iones and Agnes Mont Orthopaedic flospital Charitable Funds,Trustee's Annual Report & Accounts 2011-12

Page 22 of 26

8.3 Unrestricted Funds

Material funds

Balance incoming Resources Transfers Balance

31 March Resources Expended 31 March2011 2012FOOO EOOO EOOO EOOO EOOO

D Hospital RedevelopmentFund

E General Fund

F Children's Unit

G Arthribs & Rheumatism(unrestricted)

H Ercall Ward

(unrestricted)I Aggregate of remaining

unrestricted funds

Total

600 0 0 0 600

132

106121

159 (145)8 (13)4 (33)

(5) 1410 1010 92

60

195 44 (107)

1,214 216 313

0 132

5 1,112

1 (15) 0 46

8,4 DetaSs of material funds - unrestricted funds

Name of fund Description of the nature and purpose of each fund

D Hospital Redevelopment Fund(Unrestricted)

E General Fund

F Children's Unit

This fund was created using funds from the General Fund(undesginated). This is to be used ta support a prelect toenhance the Patient Pathway by relocating the patient carpark & providing a main entrance close to the reception,IJut Patient and X-Ray facilities, This contribution isconditionally approved subject to final approval once thefacilities have been successfully completed and madeavailable ta the Trust. Fund Balance at the end of March2012 was F600,000.

This fund is where ail the unrestricted funds of the charitywhich have not been designated are shown. They arefreely available to be used ta further the ob)eats af thecharity, within the specified authorisation limits. Fundbalance as at 31 March 2012 was E141,878.

A designated fund within the charity's general I'und tabenefit the patients and slaff of Alice Ward (the children' sunit). Fund balance as at 31 March 2012 was E100,746.

G Arthritis & Rheumatism(unrestricted)

A designated fund within the charity's general fund set upfor arthritis and rheumabsm related research and staffand pabent welfare. Fund balance as at 31 March 2012was E92,888.

H Ercall Ward

(unresbicted)A designated fund within the charity's general fund set upfor the benefit of staff and patien(s of Ercall Ward. Fundbalance as at 31 March 2012 was E45,681.

I Aggregate of remainingunrestricted funds

18 designated funds each with a balance belaw 5% of thetotal value of the unrestricted funds.

Page 23 of 26

The Rabeit Jones and Agnes Hunt Orthopaedic Hospital Chantabie Funds,Trustee's Annual Report & Accounts 2011-12

Note 9 Contingencies

There are no contingent gains or (losses) included in the accounts.

Note 10 Commitments, Liabilities and Provisions

The charity has no commitments or liabilities and has made no provisions in theseaccounts.

Post year end, final approval and payment of a E600,000 contribution was made towardsa major development being undertaken at the Trust. This project was well on its way tocompletion as at 31 March 2012 and opened in May. However, no commitment wasaccrued as payment was conditional on the successful completion and opening of thesefacilities.

Note 11Trustee and Connected Persons Transactions

11.1 Trustee expenses reimbursed

The corporate trustee, Robert Jones and Agnes Hunt Orthopaedic Hospital, chargedthe charity E32k for support work (E27k in 2010-11) and E10k for governance costs(E14k in 2010-11).

11.2 Trustee remuneration

The trustee received no remuneration payments from the charity's funds ineither 2011-12 or 2010-11.

11.3 Details of transactions with Trustee or connected persons

There were no transactions with the Trustee or connected persons in either2011-12 or 2010-11other than the charge to the charity for support andgovernance costs,

11.4 Trustee Indemnity Insurance

There was no expenditure on Trustee Indemnity Insurance in either 2011-12or 2010-11 as the Robert Jones and Agnes Hunt Orthopaedic Hospital NHSFoundation Trust is a corporate trustee with the Trust Board acting as theagent.

Note 12 Loans or Guarantees Secured against assets of the charity

There were no loans or guarantees secured against assets of the charity in either2011-12 or 2010-11.

Note 13 Related party transactions

During the year none of the agents of the corporate trustee who are also Directors ofthe Robert Jones Irs Agnes Hunt Orthopaedic Hospital lrlHS Foundation Trust orparties related to them has undertaken any material transactions with The RobertJones 8r Agnes Hunt Orthopaedic Hospital Charitable Fund.

ihe Robert Jones and Agnes Hunt Orthopaedic Hospital Charitable Funds,Trustee's Annual Report tlr Accounts 20t1-22

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APPENDIX j

The Robert Jones and Agnes Hunt ++Orthopaedic Hospital Charity

Registered Charity No 1068878

CHARITABLE FUNDS COMMITTEE

TERMS OF REFERENCE

I ConstitutionThe Board, as the Trustees of the Robert Jones rk Agnes Hunt Charitable Fund, havedelegated operational management of the charity to the Charitable Funds Committee.This operates as a sub-committee of the Board and has no executive powers other thanthose specifically delegated in these Terms of Reference.

2 RoleThe role of the Committee is to oversee the management of the affairs of The RobertJones ik Agnes Hunt Charitable Fund. This is a delegated duty carried out on behalf ofthe Robert Jones and Agnes Hunt NHS Foundation Trust, who is the sole corporatetrustee of the charity. The role is to ensure that the charity acts within the terms of itsdeclaration of trust and appropriate legislation and to provide information to theTrustees to enable it to gain assurance that the charity is properly governed and wellmanaged across the full range of activities.

3 MembershipThe membership of the Committee shall consist of the Trust Chairman, two Non-Executive Directors plus the Chief Executive and Director of Finance. A quorum will betwo Non-Executive members (or the Chairman and one Non Executive member) andone Executive member. The Trust Chairman will chair the Charitable Funds Committee.

4 AttendanceThe following individuals shall normally be in attendance

~ Finance Manager with responsibility for Charitable Funds~ If appropriate, any external fund manager~ All Trustees may attend should they wish to do so.

The Finance Manager with responsibility for Charitable Funds shall agree the agendawith the Chair of the Committee and other attendees, collate and distribute the papersand keep a record of matters arising and issues to be carried forward.

3 Frequency of meebngsNot less than four times a year, with one of those meetings attended by all of theTrustees. The Chair may at any time convene additional meetings of the Committee toconsider business that requires urgent attention. Members may participate in theseadditional meetings by telephone, video or computer link and participation in thismanner shall be deemed to constitute presence in person at the meeting.

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The Robert )ones ahd Agnes Hunt Orthopaedic Hospital Charitable Funds,Trustee's Annual Report 8L Accounts 2011-12

6 AuthorityThe Committee is authorised by the Trustees to oversee the management of theCharitable Funds, within its terms of reference. It will approve expenditure from theFunds within the limits delegated to it. It is authorised to seek any information itrequires from any employee and all employees are directed to co-operate with anyrequest made by the Committee. The committee is authorised by the Trustees toobtain outside legal or other inde pendent professional advice and to secure theattendance of outsiders with relevant expenence and expertise if it considers thisnecessary.

7 ReportingThe Committee will circulate copies of the minutes of its meeting to all of the Trustees.The Annual Report and Accounts will be presented to a meeting of all of the Trustees.The Committee will also undertake a self-assessment and produce an annual report ofits activities which it will present to the Trustees at the meeting of all Trustees.

8 Key responsibilitiesTo manage the affairs of The Robert Jones and Agnes Hunt Charitable Fund withinthe terms of its declaration of Trust and appropriate legislationTo manage the investment of Funds in accordance with the Charities' Act 2006 andif necessary appoint fund managers to act on its behalfTo ensure funding decisions are appropriate and consistent with the Robert Jonesand Agnes Hunt Orthopaedic Hospital NHS Foundation Trust's objectives, to ensuresuch funding provided added value and benefits to the patients and stait of theTrust above those afforded by the Exchequer fundsTo receive regular reports on fundraising activitiesTo implement as appropriate, procedures and policies to ensure that accountingsystems are robust, donations received and recorded as instructed and that allexpenditure is reasonable, clinically and ethically appropriateTo approve the Annual Report and Accounts and to ensure that all relevantinformation is disclosedIdentify and consider the major risks to which the charity is exposed and reviewthe systems to mitigate those nsksTo review annually these terms of reference, recommending any changes to theTrust ttoardEvaluate its own membership and performance on an annual basis.

Date prepared: 2gth March 2010Amended 27 October 2011Amended: 26~ January 2012Review date January 2013

The Robert Jones and Agnes Hunt Orthopaedic Hospital Charitable Funds,Truacee's Annual Report & Accounts 2011-12

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