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Innovation, partnership and learning: Improving health in Lambeth and Southwark

Annual Report and Accounts 2015/16

Registered Charity Number: 1160316Company Number: 9341980

Contents

Our year at a glance 2

Message from our Chairman 4

Message from our Chief Executive 5

Our mission and strategy in 2011–2016 6

Highlights of our work in 2015/16 7

Our funding 8

Transforming the system 13

Innovations that serve our communities 17

Using our assets 20

Working with Guy’s and St Thomas’ NHS Foundation Trust 25

Increasing our impact 28

Trustees’ report 33

Reporting against our priorities for the year 34

Our plans for 2016/17 36

Strategic report 38

Structure, governance and management 46

Auditor’s report and financial statements 55

Guy’s and St Thomas’ Charity Annual Report 2015/16

1

Our year at a glance


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↓ £11.7 million in charitable expenditure to improve health and care in Lambeth and Southwark

↑ Up to 80 lives a year could be saved by a new programme to improve heart failure

← Pilot testing new ways to care for children and young people in North Lambeth led to 17% fewer outpatient visits

→ New 3D printer at St Thomas’ Hospital leads to world first in kidney transplantation

← New series of seminars for local people in health to discuss current issues and challenges

← New project to improve sexual and reproductive health for 10,000 local people with severe mental illness, learning disability or substance misuse issues

← New app developed to help identify people at risk of inherited cancer

← Helped to pilot novel use of robots in kidney transplantation at Guy’s Hospital

→ Almost £1 million awarded to pioneer use of molecular imaging to improve cancer removal during surgery

↓ Programme to join up health and care locally (SLIC) results in stabilisation of hospital admissions and bed days

↑ 127 grants awarded to innovative ideas for improving health and wellbeing

127

↑ £6.8 million in grants and investments to support innovation at Guy’s and St Thomas’ NHS Foundation Trust

→ Parents and Communities Together (PACT) launches programme to give new families stronger community support and better health education

↑ Donations received for Guy’s, St Thomas’ and Evelina London hospitals up by 50% on last year at £3.9 million

← Project using dance to help young people with psychosis brings significant improvements in wellbeing

50%

million£11.7

2015/16 has been a year characterised by innovation, partnership and learning. Our funding will help tackle some of the major local health and care challenges, from alcohol misuse, to psychosis, to heart failure.

This is my first annual report as the Chief Executive of Guy’s and St Thomas’ Charity. What attracted me to the Charity was its capacity for impact – both as an independent foundation dedicated to improving health for the people of Lambeth and Southwark, and as the hospital charity for Guy’s and St Thomas’ NHS Foundation Trust.

These dual roles make us unique as an organisation. We are amongst the largest foundations – anywhere – relative to the size of the population we serve. We have deep and historic relationships with communities all across the two London boroughs of Lambeth and Southwark. And we work daily with some of the UK’s most admired healthcare professionals.

The achievements highlighted in this report predate my joining the Charity in April 2016. I am indebted to my predecessor, Peter Hewitt, and to the Trustees, partners and staff of the Charity for building such a wonderful platform for change here in South London.

Our work over the last five years has helped develop our reputation as a catalyst for innovation in health. We have directed this towards three main priorities: improving public health, transforming the healthcare system and providing outstanding cancer care. The achievements of programmes such as Southwark and Lambeth Integrated Care (SLIC) and the new Cancer Centre at Guy’s are testament to progress in nationally testing times.

This past year we have stepped up our support for redesigning health pathways, for accelerating digital health and for playing a more active role in bringing together innovators, communities and decision-makers to share and collaborate. The stories in this annual report give a snapshot of our impact and what this has meant for people in Lambeth and Southwark.

We are now coming to the end of our current five-year strategy and are in the process of developing a new strategy for the Charity, building on our progress to date. The challenge – simply – is how to have even more impact.

My Trustees, staff and I look forward to addressing that challenge. In so doing, we will be aiming for national impact from our locally-grounded activity; for partnerships with a wider range of organisations; and to be increasingly innovative in how we work.

The opportunity is significant. I am confident we can seize it, and am excited to lead the Charity in doing so.

Message from our Chief ExecutiveMessage from our Chairman

Throughout our long history, Guy’s and St Thomas’ Charity has worked to improve the health and wellbeing of people in Lambeth and Southwark.

The last five years have seen us focus particularly on those areas that have a strong, tangible and lasting impact on people’s lives. This year’s annual report includes stories of some of the people who have benefited from our work supporting health and care innovation – from the new mother finding her way through parenthood, to the clinician breaking new ground in transplant surgery with the help of new technology.

As both a hospital charity and an independent foundation backing new ideas in health, we are uniquely placed to be able to influence both local, frontline services, and whole-system change. In this annual report, we look at how our work in the past year impacts our communities. The new ideas we support ensure they get the help they need when they need it. They provide them with better ways of looking after their health and improving their care when they face life-altering health issues, both physical and mental.

Having been elected in October 2015 to succeed Sir William Wells as Chairman of the Charity, I could not have taken on the role at a more exciting time.

Next year, 2016/17, will be an important year for the Charity as we establish a new strategic direction for the coming five years. I look forward to working with our new Chief Executive, Kieron Boyle, the Trustees and staff to ensure the Charity has an even bigger impact on the health and wellbeing of people in Lambeth and Southwark. We will also be bolder in influencing the health and care agenda in our area and beyond. Our joint efforts will see the inspirational work Sir William led continuing and growing.

Much of the support we can give to others is tied to our financial capability, so I am pleased to report stability this year. This is a satisfactory outcome following the difficult start to 2016 in the markets. Our property portfolio saw returns of 19.1% and, helped by borrowing at historically low rates, we made a significant purchase as part of our long-term strategy.

I would like to thank the Trustees whose tenure ended this year for their guidance and support, and I welcome the new members to our board. With their unique mix of skills and shared enthusiasm in the Charity’s future, they will be a much valued and welcome driving force for the exciting times ahead.

Wol Kolade, Chairman

Kieron Boyle, Chief Executive

“ As both a hospital charity and an independent foundation backing new ideas in health, we are uniquely placed to be able to influence both local, frontline services, and whole-system change.”

“ Our work over the last five years has helped develop our reputation as a catalyst for innovation in health.”


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Our mission and strategy in 2011–2016

We support new ideas to tackle major health and care challenges in the London boroughs of Lambeth and Southwark.

Our mission is to be a catalyst for health and healthcare improvement. We support innovation in order to create world-leading healthcare in Guy’s and St Thomas’ NHS Foundation Trust; to improve the physical and mental health of the local population; and to fulfil the vision of King’s Health Partners.

Who we areWe are an independent charitable foundation dedicated to excellence in health and care in Lambeth and Southwark.

We are independent from the NHS but work closely with it and the whole healthcare system.

What we doWe help identify and act on key issues in health and care. We work with others to achieve radical, lasting change for people who live, work or are treated in Lambeth and Southwark.

Our current focus is on helping to improve public health, to transform the healthcare system and to provide outstanding cancer care.

How we do itOur endowment, donations and other assets allow us to provide funding, invest in new ideas and bring people together to share, learn and collaborate.

The careful management of our endowment and the generous donations we get from people allow us to invest around £20 million in local health every year.

We seek new ideas from everyone from senior executives to frontline staff from NHS trusts to GPs, local government, social entrepreneurs, third sector organisations or private companies.

We work closely with the academic health science centre King’s Health Partners, and the organisations that are part of it: three of the most prominent NHS foundation trusts in the UK – Guy’s and St Thomas’, King’s College Hospital and South London and Maudsley – and the largest healthcare education centre in Europe, King’s College London.

A big proportion of our funding directly supports Guy’s and St Thomas’ NHS Foundation Trust, our strategic and historic partner. We also handle all donations made to Guy’s, St Thomas’ and Evelina London hospitals.

We were established over 500 years ago to improve health and care locally

Highlights of our work in 2015/16

In the year ended 31 March 2016 we supported a range of exciting new ideas to improve the health and care of the people of Lambeth and Southwark. We also saw some of the projects that we have backed over recent years reach major milestones.

The following pages outline how our work has had a real impact on people, from providing a mother-to-be with advice and reassurance, to a health innovator using the benefits of our funding to perform life-saving surgery.


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Some of our grants and investments in 2015/16

£1,556,200 for an innovative care pathway for people with heart failure

£1,338,841 for an intensive outreach treatment service for frequent attenders at A&E with alcohol-related problems

£991,884 to pioneer molecular imaging during cancer surgery

£75,000 for a website and an app to help people find sports facilities near them

£446,555 to improve sexual and reproductive health for people with severe mental illness, learning disability or substance misuse issues

Our fundingOur charitable expenditure in 2015/16

Total £11,698,100

Our funding in the last four yearsOur charitable expenditure since establishing our strategic priorities in 2012/13

Total £113,595,731

This year we contributed £11.7 million in funding. We awarded 127 grants to new ideas from NHS foundation trusts, commissioners, voluntary organisations, community groups and more.

This year is the third year of our five-year budget cycle for charitable expenditure. Having made large commitments of funds in the first two years of it, in 2015/16 we brought balance by reducing charitable expenditure to £11.7 million.

Much of our support went to organisations that are part of King’s Health Partners – our local NHS trusts and university. A number of ambitious and transformational projects will see our local healthcare providers working closely together and with others, including commissioners and voluntary

organisations, to tackle some of the bigger issues affecting our communities – from heart disease to poor mental health.

We backed initiatives led by our historic and close partner Guy’s and St Thomas’ NHS Foundation Trust and provided almost twice as much funding to South London and Maudsley NHS Foundation Trust compared with last year. We also continued to partner with King’s College Hospital NHS Foundation Trust and King’s College London on major cross-system projects.

Our funding continued to focus on our priorities to transform the healthcare system, create better cancer care and improve public health. We also funded other activities including general improvements in hospital wards and research into new approaches in health.

Backing ideas that tackle big issues

Grants and investments are key to our aim of improving health and wellbeing in Lambeth and Southwark. Every year we commit millions towards driving meaningful, lasting change in our communities.

Our funding


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Strategic Priority

Stra

tegi

c Prio

rity

4 ye

ars

Recipient Partner

Recipient Partner 3 years

£6,867,697Guy’s and St Thomas’NHS Foundation Trust

£275,225King’s College Hospital NHS

Foundation Trust

£1,485,544Research and development

£10,527,069Research and development

£1,251,586Cancer

£28,807,225Cancer

£1,727,414King’s College

London

£25,340,205Other (e.g. healthcare commissioners and charities)

£6,449,299South London and Maudsley

NHS Foundation Trust

£5,374,652System transformation

£41,745,700System transformation

£1,443,040South London and

Maudsley NHS Foundation Trust

£63,326,087Guy’s and St Thomas’NHS Foundation Trust

£2,642,952 Other

£23,879,476 Other

£18,204,915King’s College

London

£8,636,261Public health

£943,366Public health

£1,659,949Other (e.g. healthcare commissioners and charities)

By recipient partner

By recipient partner

By strategic priority


We contributed £11.7 million towards new ideas in health, including grants for 127 innovative projects

King’s College Hospital NHS Foundation Trust continues to be a major partner on cross-system projects.

ENFIELD

HARINGEY

WALTHAMFOREST

BARNET

BRENT

HARROW

SLOUGH

WINDOR AND

MAIDENHEAD

EALING

HILLINGDON

HOUNSLOW

SURREY

ESSEX

HERTFORDSHIRE

CAMDENISLINGTON

CITY OFLONDON

CITY OFWESTMINISTER

HAMMERSMITH& FULHAM

KENSINGTON& CHELSEA

SOUTHWARKGREENWICH

BEXLEY

LEWISHAMLAMBETH

WANDSWORTH

RICHMOND UPON THAMES

MERTON

KINGSTONUPON

THAMES

BROMLEY

SUTTONCROYDON

HACKNEY

NEWHAM

BARKING&

DAGENHAM

REDBRIDGE

HAVERTING

TOWERHAMLETS

Our funding this year will help fight some of the most serious health issues in our communities. Grants are tackling big killers like cancer and heart failure.

This year we awarded funding for an innovative care pathway for people with heart failure, which could save up to 80 lives a year.

Alcohol is the leading cause of preventable morbidity and mortality in the UK, and is a particularly big issue in Lambeth and Southwark in South London. This year we awarded £1.3 million to help people who regularly attend hospital with alcohol-related problems.

Lambeth and Southwark have some of the worst cancer survival rates in the country. As our supported Cancer Centre at Guy’s readies to open in autumn 2016, this year we provided almost £1 million to King’s College London to introduce molecular imaging technology that helps detect cancer cells during surgery to improve removal. A further £177,628 went to Guy’s and St Thomas’ NHS Foundation Trust to improve outcomes following surgery for oesophageal cancer.

Rates of psychosis in Lambeth and Southwark are among the highest in the country. This year we supported a study into re-purposing the widely used drug glyceryl trinitrate (GTN) to treat patients with acute psychosis as an alternative to current treatment, which has severe side effects.

We have also supported projects to improve the outcomes of babies before they are born. A programme to detect foetuses that are growing slower than expected aims to prevent 150 stillbirths a year. We’re also supporting a project to develop non-invasive prenatal diagnosis for sickle cell disease, a serious inherited condition that affects the red blood cells.

This year we have also had a more active role in digital health. Exciting projects such as OpenPlay have the potential to make a real difference to people’s lives.

During 2015/16 we extended our support for groundbreaking research through the King’s Health Partners R&D Challenge Fund and our MRes/PhD programme in Biomedical and Translational Science. In the coming years, we will award grants to help develop solutions for very real issues in health and care by funding research pilots and high-quality studentships.

Working with Southwark Council, this year we supported a project that increased the uptake of bowel cancer screening in the borough.

There is a low uptake of bowel cancer screening in Southwark, and although there is evidence that GP endorsement can improve uptake, general practice isn’t routinely included in the screening programme. This project increased awareness and involvement of GPs in bowel cancer screening. It provided practice staff with information about the testing kit so that they are able to discuss screenings with patients and demonstrate how to use the kit.

In 11 months around 100 additional people returned their test kit. Non-return of test kits is now flagged on GP systems, enabling them to follow up on people. In some GP practices in Southwark, following up on people who did not return their bowel cancer tests led to 28% of them getting tested this year.

A digital solution to connecting sports facilities to individuals has been launched, with our support.

OpenPlay is an online sport and activity matching service – making the best use of existing local community assets to get more people active.

Founded in West Norwood, Lambeth, and launched in 2013, our investment this year of £75,000 has helped OpenPlay to create a new booking system and search function, and a mobile app – making it even easier for people to access sports and activities in their area.

This unique innovation allows sports organisers to find venues and participants; individuals to find local events, clubs and activities; and teams to connect with potential team-mates.

Using digital means, this innovation is helping people get active and so potentially improve health outcomes.

Find out more at www.openplay.co.uk

Key achievements

Our funding

Digital solution driving health outcomes

Increasing bowel cancer screening


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Our funding this year will help tackle issues like

heart failure, alcoholmisuse and psychosis

In some GP practices in Southwark,

following up on people who did not return their bowel cancer

tests led to 28% of them getting tested this year

Southwark and Lambeth Integrated Care

27 projects designed and tested or implemented

Emergency bed days in Lambeth and Southwark have stabilised, against a marked increase nationally

100% of patient records now available to GPs and NHS trusts

Emergency admissions have risen at a slower rate compared with national figures

3 out of 4 people attending falls exercise classes reported increased confidence and quality of life, and no hospital admissions have been registered due to falls

Evidence of stronger partnerships across the local health and care systems

Monica Wade is 85 years old and has lived on her own in Kennington since her husband died 18 years ago. When she recently attended a clinic at her GP practice, she mentioned that she was interested in doing exercise classes.

The nurse put her in contact with a care navigator, Erin Mee, who told her about Blackfriars Settlement, a charity that provides services for older people.The care navigation service is part of SLIC, a partnership – between all 92 local general practices, three local NHS foundation trusts, Southwark and Lambeth clinical commissioning groups, and the two local councils – that aimed to join up health and care for local people.

We supported SLIC from the start and provided £10.6 million in funding.

Erin has continued to help Monica since that first contact. She referred Monica to an occupational health service who has arranged for a bath chair to be installed in her home.

She has also helped her to find a suitable walking aid, and put her in contact with the Citizen’s Advice Bureau to help her with her gas and electricity bills.

“Erin knows exactly what to do about the issues I’ve been having”, said Monica. “She immediately puts me in touch with the right person, someone who can help.

“I didn’t know about Blackfriars Settlement, and now I go every week for exercise classes, yoga and reflexology.”

Erin is an Age UK care navigator. As part of SLIC she has been working closely with a group of local GP practices to manage the social needs of their older patients. She identifies support networks and community groups to help them remain as independent as possible.

“The issues that people have can be quite complex and it can take time to figure out what help they need”, explained Erin. “Rather than them going back to their nurse or GP, they can come to me and I can spend some time with them, find out what their issues are, and refer them to the right place.”

For Monica, attending a local exercise class is now an important part of her life. It keeps her fit, improves her balance and helps her meet people. She was introduced to the classes by a care navigator, part of the Southwark and Lambeth Integrated Care (SLIC) initiative, which we supported for four years.

Joining up care to help people like Monica

Transforming the system

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ENFIELD

HARINGEY

WALTHAMFOREST

BARNET

BRENT

HARROW

SLOUGH

WINDOR AND

MAIDENHEAD

EALING

HILLINGDON

HOUNSLOW

SURREY

ESSEX

HERTFORDSHIRE

CAMDENISLINGTON

CITY OFLONDON

CITY OFWESTMINISTER

HAMMERSMITH& FULHAM

KENSINGTON& CHELSEA

SOUTHWARKGREENWICH

BEXLEY

LEWISHAMLAMBETH

WANDSWORTH


MERTON

KINGSTONUPON

THAMES

BROMLEY

SUTTONCROYDON

HACKNEY

NEWHAM

BARKING&

DAGENHAM

REDBRIDGE

HAVERTING

TOWERHAMLETS

Up to 80 lives a year could be saved in Lambeth and Southwark as a result of a breakthrough initiative to improve the diagnosis and treatment of people with heart failure.

Heart failure affects an estimated 5,000 people in our community, and accounts for 5% of hospital admissions to Guy’s and St Thomas’. Dr Gerry Carr-White, a consultant cardiologist, is leading the introduction of an innovative heart failure pathway that will deliver seamless care for these people. We are supporting the project with a £1.5 million grant.

The pathway will join up care across different settings – from GPs to hospitals – and provide 24/7 access to community-based specialists. It aims to reduce mortality, length of hospital stay, the number of unnecessary visits to A&E and re-admissions to hospital. It aims to ensure people who experience heart failure have better outcomes and improved quality of life.

We continued to support a transformational partnership approach to improving the health and wellbeing of children and young people in our boroughs.

In 2015/16 we provided a further £583,000 to the Children and Young People’s Health Partnership (CYPHP). The funding helped prepare for an ambitious system transformation programme which will see primary and secondary care working more closely together. The programme aims to reduce hospital visits and A&E admissions of children and young people in our boroughs, which are higher than the national average.

CYPHP has been putting in place small-scale tests of change. Pilot ‘in-reach’ clinics in North Lambeth have brought a GP and paediatrician together to share clinical and system knowledge. This has resulted in a 17% reduction in outpatient usage and increased confidence in primary care among families.

Health and care that is disjointed leads to poor outcomes and inefficiencies. We are working with services in Lambeth and Southwark to join up provision for people, creating whole-person care that is effective and sustainable.

In 2015/16 we provided £5.4 million of funding to projects looking to transform the health and care systems. Some of this funding went to continue supporting ongoing long-term change programmes.

SLIC has been a major element of this work over the last four years. The programme has made huge strides in linking up services at scale across the local NHS and social care. SLIC ended in March 2016, making way for a new phase of partnership working. We are helping to support this collaborative way of working to build on the achievements of SLIC and address critical challenges in the system.

Joining up care for people with mental health needs can make a real difference to their outcomes. This year our supported Lambeth Living Well Network Hub expanded its holistic support

– spanning access to treatment, but also advice on welfare and employment – for people with mental health issues from North Lambeth to the entire borough.

We continued backing the Children and Young People’s Health Partnership. This pivotal programme is testing innovative models to strengthen primary and community care for children and young people and avoid unnecessary hospital admissions.

Meanwhile, TOHETI, our long-term programme to improve the use of imaging technology, has progressed apace this year. It piloted alternative pathways and introduced cutting-edge technology across King’s Health Partners.

We have also continued to support development across primary care. Our funding this year ensured that ‘emerging leaders’ from general practice had the time and resources to step out of their busy day-to-day work to continue growing vital leadership skills. This new generation of leaders is helping to cement the new federations of local GPs and create stronger links with hospitals and others.

“ Heart failure is a uniquely treatable condition. With evidence-based treatment, early and accurate diagnosis, access to high-quality care and a holistic focus on managing patients’ needs, we can reduce mortality.”

Dr Gerry Carr-WhiteConsultant Cardiologist at Guy’s and St Thomas’ NHS Foundation Trust

Key achievements

Transforming the system

Lifeline for people with heart failure

Groundwork to transform child health


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Pilots testing new ways to care for local children and young people in North Lambeth led to 17% fewer outpatient visits

Parents and Communities Together (PACT)

Aims to improve understanding and knowledge of health among parents in Southwark, and infant health and developmental outcomes

More help for parents to find and access social support and health education

First cohort of 12 parent champions from mosques, churches, tenants and residents’ associations, and primary schools recruited and trained

Closer relationships built between maternity services and local community organisations

Health visitors and midwives increasingly referring mothers to PACT’s parent hubs

183 mothers engaged in peer support groups called MumSpaces

This is Cynthia Okine’s first baby and she, like many expectant mothers, had many worries about what to expect: “I didn’t know anything about pregnancy and how to be a mother”, she said. Then she found out about the Parent University, being held near her home in Camberwell.

This innovative programme on pregnancy and early parenting has a very practical focus. It aims to arm new parents with knowledge and reassurance about what is ahead. The curriculum includes sessions on nutrition, breastfeeding, parenting skills, sleep and routine, and bonding with the baby, as well as how to access nursery places and what maternity rights there are.

Both pregnant women and parents with babies attend the same Parent University, with the emphasis being on attendees being able to share their hopes, worries and experiences, and make friends as a result.

“I have learnt so much”, said Cynthia, 29. “It is so important to know what to expect, as so much will change as soon as the baby arrives. I now feel so much more prepared than I did.

“I now feel excited about meeting and looking after my baby, rather than worried, as I was previously.”

New parents often need support. Many mothers in Southwark don’t receive specialist services and can feel isolated. They may lack social networks or community links. Evidence demonstrates that maternal stress and poor access to healthcare hinder a child’s development and health.

Health inequalities in Southwark mean poor health prospects for many newborns in the borough. The Parent University is one part of Parents and Communities Together (PACT), an innovative project from Citizens UK that aims to improve the health and development of babies in Southwark.

PACT is bringing together parents and carers, community and faith groups, children’s centres and maternity services to tackle social isolation and break down barriers to accessing health and care services.

As well as the Parent University, there are also parent hubs being established in community settings such as primary schools and churches. At these hubs parents can attend support groups and get donated baby clothes and toys.

PACT aims to help people like Cynthia have more support and access to more services, and be more informed about healthy behaviours and who to go to when they need help.

At six months’ pregnant, Cynthia is looking forward to giving her baby the best possible start to life. But only a few weeks ago she was worried about what to expect during pregnancy and concerned about how she would manage with a newborn baby. Her new-found confidence is down to attending the ‘Parent University’, part of one of the initiatives we’ve supported, which launched this year.

Community support to give families the best start

Innovations that serve our communities

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ENFIELD

HARINGEY

WALTHAMFOREST

BARNET

BRENT

HARROW

SLOUGH

WINDOR AND

MAIDENHEAD

EALING

HILLINGDON

HOUNSLOW

SURREY

ESSEX

HERTFORDSHIRE

CAMDENISLINGTON

CITY OFLONDON

CITY OFWESTMINISTER

HAMMERSMITH& FULHAM

KENSINGTON& CHELSEA

SOUTHWARKGREENWICH

BEXLEY

LEWISHAMLAMBETH

WANDSWORTH


MERTON

KINGSTONUPON

THAMES

BROMLEY

SUTTONCROYDON

HACKNEY

NEWHAM

BARKING&

DAGENHAM

REDBRIDGE

HAVERTING

TOWERHAMLETS

Our alcohol outreach

programme hopes to halve

A&E admissions of those benefiting

from the service, saving around

£800,000 a year

An innovative study has been looking at ways to improve the mental and emotional wellbeing of high-risk and vulnerable babies and young children in Southwark.

With the support of a £1.6 million grant from us in 2012/13, SUSI – Social-Emotional Screening for Under 4s Intervention Study – used an innovative screening model on specific groups of under fours, including those who are on child protection plans.

It targeted interventions such as practical advice for parents, play observation, discussion of screening results with key workers in children’s centres and care planning alongside child protection professionals.

Early results show a statistically significant improvement in families’ learning and confidence, and a decrease in depression and stress. They also show a higher proportion of children developing appropriately following the intervention.

Alcohol abuse is a growing health concern in the UK and in our local communities.

Analysis suggests that 9% of patients admitted with an alcohol diagnosis account for 36% of alcohol-related admissions to our local hospitals.

This year we began supporting a three-year project led by South London and Maudsley, King’s College Hospital and King’s College London aimed at identifying around 100 of these frequent attenders per year and providing them with 12 months of comprehensive support and treatment.

The assertive outreach treatment service will assess their physical and mental health, as well as wider social needs, develop treatment goals and coordinate care and support.

Our funding of over £1.3 million will help the project demonstrate effectiveness, reduce A&E admissions by the people benefiting from the service by over 50% and save the NHS around £800,000 per year once the service is established.

Helping the most vulnerable people within our communities has been a top priority for many of the projects we supported this year.

People who need help to keep healthy and well often have a combination of needs beyond their physical health – for example social and psychological needs.

This year we’ve backed innovation in social care with a grant to UnLtd, an organisation that provides support to social entrepreneurs, for its Southwark Adult Health and Social Care awards. This project is backing 13 entrepreneurs to work with some of the most vulnerable and difficult to access groups in the borough. These include people with a history of severe substance misuse and women who have been the victims of domestic violence.

Psychosis is particularly prevalent in our area. In south London there are 56% more new cases of schizophrenia and other psychoses diagnosed each year when compared with the average in England. The Alchemy Project, a dance-led intervention we supported to help young adults who are accessing early intervention in psychosis services, completed its second phase this year. Participants have demonstrated clinically significant improvements in wellbeing. The results also show improvements in self-belief, confidence and trust in others.

This year we also backed a new project to improve sexual and reproductive health for the 10,000 people in Lambeth and Southwark with severe mental illness, learning disability or substance misuse issues. With nearly £450,000 from us, this programme aims to reduce the burden of sexually transmitted infections and unmet contraceptive need.

Key achievements

Innovations that serve our communities

Mental health screening for vulnerable children

Alcohol service to curb A&E admissions


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Our mental health screening programme for 0–4 year olds

has improved families’ learning and confidence, and decreased

depression and stress

Our fine arts and heritage collection

One of the largest art collections belonging to a health charity in the UK

Includes over 4,000 artworks and artefacts

Comprises oil paintings, sculpture, photography, silverware, medical and pharmaceutical items, textiles, and an extensive fine art print collection

Holds artworks by the likes of Robert Motherwell, Dame Elizabeth Frink and Patrick Caulfield

The oldest items date back to the 1500s

Artworks are on display across Guy’s and St Thomas’ sites

Creativity, arts and culture can have a radical impact on helping people recover, stay well and have a better experience when in hospital. We are at the forefront of the arts and health agenda.

If you walk through Guy’s, St Thomas’ and Evelina London hospitals you will see many of our artworks on display. They are there to make healthcare spaces more inviting and less stressful for staff, patients and visitors.

Our collection has been built up over centuries by benefactors and art enthusiasts connected with the hospitals. Imogen explains its significance: “We believe it is one of the largest and most diverse collection belonging to a health charity in the UK. We care for artefacts, oil paintings, contemporary prints, photographs, furniture, wallpapers, pharmaceutical items, textiles and much more.”

This year we have worked closely with the hospitals to ensure those leading key redevelopments in the buildings consider introducing artworks and creative elements in the new spaces.

We also continued to collaborate with local museums and collections to maximise opportunities to show the rich heritage we own collectively.

Over 20 of our artworks that have rarely or never before been displayed were part of a special exhibition at the Florence Nightingale Museum, which helped us to open up the collection to a wider audience.

Part of the display was a fascinating discovery we made recently. While Imogen was refurbishing a storeroom that the art collection is held in, she found an oil painting of Edward VI. She explains: “The painting was listed as ‘missing’ and all I had was a very grainy photo of it. When I found it, I knew straight away what it was. It is an extraordinarily special painting, both from an artistic and a historical perspective.”

The son of Henry VIII, Edward re-established St Thomas’ Hospital after it was closed during the Reformation. The newly recovered portrait reminds us of the power of arts to connect us with our past and celebrate our history.

This year we worked hard to ensure more people could enjoy our unique art collection. Imogen Gray, our Collection Manager, led our work to make the most of opportunities to display high-quality, uplifting and thought-provoking art in healthcare spaces.

Boosting the healing potential of arts and heritage

Using our assets

20


ENFIELD

HARINGEY

WALTHAMFOREST

BARNET

BRENT

HARROW

SLOUGH

WINDOR AND

MAIDENHEAD

EALING

HILLINGDON

HOUNSLOW

SURREY

ESSEX

HERTFORDSHIRE

CAMDENISLINGTON

CITY OFLONDON

CITY OFWESTMINISTER

HAMMERSMITH& FULHAM

KENSINGTON& CHELSEA

SOUTHWARKGREENWICH

BEXLEY

LEWISHAMLAMBETH

WANDSWORTH


MERTON

KINGSTONUPON

THAMES

BROMLEY

SUTTONCROYDON

HACKNEY

NEWHAM

BARKING&

DAGENHAM

REDBRIDGE

HAVERTING

TOWERHAMLETS

From inspiring more people through our art collection, to investing in new property ventures, this year was especially productive in the use of our assets to improve health.

The careful management of our assets is what allows us to drive change in local health every year.

In 2015/16, the substantial return on the properties we own compensated for losses in the difficult financial markets experienced during the year. Overall, we generated a return of 2.9% on our Endowment.

We continued using some of our properties to help create better healthcare facilities. Meanwhile, we maximised others as commercial investments, using the returns generated to further our charitable aims.

We have also made a large property investment this year which we hope will help us to achieve our charitable mission.

In 2015/16 we also worked hard to get more items from our art collection out of our storeroom and into healthcare and other spaces. We refreshed some of the artworks across Guy’s and St Thomas’ hospital sites. This included a project which combined key pieces of our collection with new commissions, as part of the refurbishment in the Bermondsey Centre at Guy’s. Supported by an artist-in-residence, hospital staff and patients helped to select and curate the final artworks.

Some of our collection’s pieces are housed in the chapel at St Thomas’ Hospital, which re-opened in February 2016 after eight months of restoration supported by us. The Grade II listed multi-faith space offers a rare haven for patients and staff in the heart of a busy city hospital.

Building work on a new ‘home away from home’ for the families of children being treated at Evelina London Children’s Hospital began this year.

The new Ronald McDonald House will replace the old building that opened in 1990 by Guy’s Hospital. That building houses 20 families and is a bus ride away from the new children’s hospital site.

Sited on land donated by us, the new House features 59 family rooms and is a few minutes’ walk from Evelina London, meaning families can stay close to the hospital where their children are being treated.

The project is a partnership between ourselves, Ronald McDonald House Charities and Guy’s and St Thomas’ NHS Foundation Trust. It has been a long journey to secure this exciting development, which will offer more families a comfortable and modern space to live in, free of charge.

We made a significant financial move this year by acquiring Becket House, an office building opposite St Thomas’ Hospital, for £112 million.

The Charity already owned the freehold of Becket House and the neighbouring land. Buying the head lease enables us to plan for the redevelopment of the expanded site.

Buying Becket House is part of our long-term property strategy: it is an investment in a sought-after area, adjoining other land we own and with potential to deliver significant benefit to our mission.

To complete the purchase, we decided to take advantage of historically low interest rates and borrow £60 million. The fixed-rate loan is the first time we have taken on long-term debt. The move will allow us to maintain our spread of assets, which is important for the long-term health of our endowment as a whole.

Key achievements

Using our assets

‘Home away from home’ gets built

A strategic investment in property


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22

Our property provided significant returns in a

difficult year on the financial markets

The new Ronald McDonald

House will offer more families with

children being treated at Evelina London a ‘home

away from home’

3D printing at Guy’s and St Thomas’

The 3D printer is based at St Thomas’ Hospital and was funded by a £241,000 grant from our Health Innovation Fund in 2014/15

3D models have been used in 2 complex kidney transplants at the Trust on children using adult kidneys. 2 more are in the pipeline

The 3D models take around 12 hours to produce

Lucy’s transplant operation took about 4 hours

The innovation has been cited in over 40 articles and websites around the world, from Australia to India

Bladder and prostate cancer experts at the Trust have started to explore the use of 3D printing technology in their work

When Pankaj Chandak, Transplant Registrar and Research Fellow at the Trust, attended a lecture on 3D printing in heart surgery, little did he know it would lead to him developing an innovation in kidney transplantation that has made headlines around the world.

He entered a competition run by Dr Andy Coleman, Head of Non-ionising Radiation, for ideas to use the new 3D printer at the Trust, which was bought through one of our grants.

Pankaj explains: “I went to a lecture arranged by the medical physics team and had the idea straight away – why couldn’t we use the 3D printing technology that is now available at the Trust to help make complex kidney transplants in children safer and take away some of the risk?”

And things very quickly progressed from there. Within four months of having the idea and winning the competition, Pankaj and the team were performing life-saving surgery on two-year-old Lucy Boucher, using a 3D model to successfully transplant her father’s kidney.

Lucy suffered heart failure at four weeks old. Her kidneys subsequently failed after being starved of oxygen. She was referred to experts at the Trust and had a successful kidney transplant in November 2015, using a kidney donated by her father, Chris.

In a world first in the use of 3D printing, replicas of Chris’ kidney and Lucy’s abdomen were produced. Based on measurements obtained through CT and MRI scans, the 3D printer moulds liquid plastic resin under UV light to produce a model replicating the body part’s anatomy and, to some extent, the density.

The models helped Lucy’s surgeons plan how to put an adult-sized kidney into the body of a toddler.

“Producing 3D models for these complex operations not only helps us to accurately plan the procedure wtithin a team and minimise the risks, but it also provides reassurance for the family as it makes the procedure easier for them to understand. They also provide a valuable hands-on teaching source for training surgeons”, said Pankaj.

The model used in Lucy’s operation will soon be on permanent display in the Science Museum as an example of medical innovation.

Pankaj won the Cutler’s Surgical Prize,for technical advances in surgicaltreatment, and the Royal Society ofMedicine’s Norman Tanner Medal, forinnovative surgical research.

Pioneering 3D printing to help make complex transplants safer has been made possible this year at Guy’s and St Thomas’ NHS Foundation Trust – changing lives and transforming surgical practice.

Technology that sparks world-class innovation

Working with Guy’s and St Thomas’ NHS Foundation Trust

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ENFIELD

HARINGEY

WALTHAMFOREST

BARNET

BRENT

HARROW

SLOUGH

WINDOR AND

MAIDENHEAD

EALING

HILLINGDON

HOUNSLOW

SURREY

ESSEX

HERTFORDSHIRE

CAMDENISLINGTON

CITY OFLONDON

CITY OFWESTMINISTER

HAMMERSMITH& FULHAM

KENSINGTON& CHELSEA

SOUTHWARKGREENWICH

BEXLEY

LEWISHAMLAMBETH

WANDSWORTH


MERTON

KINGSTONUPON

THAMES

BROMLEY

SUTTONCROYDON

HACKNEY

NEWHAM

BARKING&

DAGENHAM

REDBRIDGE

HAVERTING

TOWERHAMLETS

Our support for the Trust in 2015/16

£3.5 million to back innovative ideas within the Trust

12 grants to transform care for heart failure patients, improve child healthcare, pioneer robotic surgery and more

£5.1 million received in donations and legacies, up from £2.7 million last year

£3.7 million from this and previous years’ donations went to support work across the hospitals

36 individual awards for professional development

Bespoke artworks installed at East Wing at St Thomas’ and Bermondsey Wing at Guy’s

St Thomas’ Chapel re-opened with our support after months of restoration

Knowing that a person is at risk of inherited cancer can ensure they get appropriate care. Cancer Genetics is helping healthcare professionals refer patients to the help they need.

A new app has been developed by Dr Anju Kulkarni, a consultant clinical geneticist at Guy’s and Thomas’, to identify people who may be at risk of developing inherited cancer.

Cancer Genetics uses an individual’s personal, family and medical history to assess their risk and, if necessary, refer them directly to specialist cancer genetics services. If the person is found not to be at risk, they and their family can be instantly reassured.

Dr Kulkarni developed the app with the help of a previous £15,000 grant from our Cancer Funds.

Two artists have taken the tradition of fish tanks in hospital waiting rooms as inspiration and created two stunning sculptures of ‘floating plants in an aquarium’ at St Thomas’ Hospital.

London-based artists Hsiao-Chi Tsai and Kimiya Yoshikawa were commissioned to produce bespoke artworks to sit inside the two glass atria of the hospital’s East Wing, which was unveiled in January 2016 after an extensive revamp.

Supported through our Health Innovation Fund, the designs were selected after receiving more than half of the votes from patients and staff who took part in the consultation exercise.

The artworks enhance the experience of patients, staff and visitors to the East Wing, which houses two intensive care units and 200 inpatient beds.

This year we continued to work with our strategic and historic partner, Guy’s and St Thomas’ NHS Foundation Trust, to improve care for patients. We supported staff to develop innovative ideas, enhance healthcare spaces, grow their skills and carry out groundbreaking research.

Our work with our partners at the Trust continued driving change for patients this year. We did it through our role as the charity for Guy’s, St Thomas’ and Evelina London hospitals, and in our capacity as an independent grant-maker backing new ideas.

Generous public donations and legacies received by the hospitals in 2015/16 totalled £5.1 million, an increase of £2.5 million on the previous year.

£3.3 million from these and previous donations was used this year to back developments with a big impact. For example, work started on a new 18-bed cardiac ward thanks to a £3 million donation.

As an independent foundation, we continued to support brilliant new ideas from within the Trust to transform health and care for people in Lambeth and Southwark. We awarded the Trust £3.5 million to back innovative projects.

This includes £1.5 million to transform care for heart failure patients and £583,000 to improve the healthcare of children and young people.

The Trust was also awarded £446,555 to improve sexual healthcare for people with severe mental health issues, learning disabilities and substance misuse issues. £82,567 went to pioneer a new use of robotics in kidney transplants to reduce pain and enable quicker recovery. And a further £117,600 went to improve outcomes following surgery for oesophageal cancer.

As our supported new Cancer Centre at Guy’s prepares to open its doors in autumn 2016, this year we backed the first ever Cancer Survivors’ Day in the UK, at Guy’s Hospital on 7 June 2015.

Finally, in October 2015 we helped celebrate 10 years of Evelina London Children’s Hospital on its current site – a decade delivering life-changing care for children, young people and their families.

Key achievements

Working with Guy’s and St Thomas’ NHS Foundation Trust

New app to spot cancer risk

Floating flowers for revamped East Wing


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26

A new app developed at

Guy’s and St Thomas’ is helping to

identify people at risk of inherited

cancer

Our events in 2015/16

3 seminar sessions

Attended by health and care professionals, CCG chairs, social entrepreneurs, patient representatives and more

Around 75% of attendees found the seminars ‘extremely’ or ‘very’ useful

3 out of 4 said the seminars met or exceeded their expectations

Lessons made available online, including a new guide to sustaining the impact of health innovation

In 2015/16 we started a series of seminars on health innovation. We brought together over 100 frontline clinical staff, social entrepreneurs, innovators, decision-makers and more to hear about innovative work happening in our area, share experiences and create new links and networks.

“By showcasing the work of some of our supported projects and giving people a space to come together and talk, we want to prompt fresh thinking.

“We want people to come out of these sessions having learned something new about what’s happening locally. We’d like them to leave inspired with ideas and new contacts that can help them and increase their potential impact” said Gayle Willis, our Director of Communications.

We ran three sessions to discuss big topics in health innovation. We explored what it takes to sustain the impact of it, including the difficulties of maintaining lasting change in our local system. We looked together at the challenges of evaluating innovation, particularly when numbers cannot tell the full story. And we explored how tackling wider determinants of health, such as poor housing or unemployment, could improve outcomes.

Some of the actions pledged by attendees after being at our events included: “Consider how to add rigour to our qualitative evaluation”; “Encourage earlier engagement with [health] commissioners”; and “Approach local organisations in Lambeth to collaborate on our work at primary school level”.

“Feedback from attendees to date has been very positive, but they have also challenged us to take these gatherings further, so we are building on our programme for next year”, said Gayle.

Innovative ideas are often sparked through conversations with others. And learning from those who have implemented similar projects can help make good ideas even better. Our events allowed people to discuss local challenges and foster potential new collaborations.

Bringing people together to spread new ideas

Increasing our impact

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ENFIELD

HARINGEY

WALTHAMFOREST

BARNET

BRENT

HARROW

SLOUGH

WINDOR AND

MAIDENHEAD

EALING

HILLINGDON

HOUNSLOW

SURREY

ESSEX

HERTFORDSHIRE

CAMDENISLINGTON

CITY OFLONDON

CITY OFWESTMINISTER

HAMMERSMITH& FULHAM

KENSINGTON& CHELSEA

SOUTHWARKGREENWICH

BEXLEY

LEWISHAMLAMBETH

WANDSWORTH


MERTON

KINGSTONUPON

THAMES

BROMLEY

SUTTONCROYDON

HACKNEY

NEWHAM

BARKING&

DAGENHAM

REDBRIDGE

HAVERTING

TOWERHAMLETS

In a process that began last year, we are getting under the skin of how our work is having an impact. What we learn is helping us shape our decision-making.

As a funder of new and risk-taking ideas, we know not everything we fund will achieve its goals. This year we began to gather and analyse on a regular basis evidence from the many grants we award and initiatives we fund. The main focus of our analysis this year was completed projects we funded through grants from our Health Innovation Fund over the past five years. We looked at data from 79 of these, amounting to £15.6 million. We learned that, of these, 65% achieved or exceeded their goals, 46% said they learned important lessons and 48% had strong plans for sustainability.

For the first time, we also looked in depth at the impact of our funds for children’s healthcare at Guy’s and St Thomas’ supported by public donations. Over the previous five years, we learned, grants have helped to create a welcoming and safe environment and to deliver excellent clinical quality. They have also helped the hospital to give more efficient care and promote a strong sense of community for parents and staff.

“We want Further, Faster to become the best and most extensive online library of advice and tips for the NHS and SMEs.”

Alex KafetzChief Operating Officer, ZPB Associates

Each project we support has a story to tell – sharing the lessons is integral to the success of future innovation. As a backer of new ideas, understanding better what works in health innovation is just as important to grow our potential impact.

This year we worked to ensure our funded programmes, particularly the largest like SLIC, have robust evaluation that tells the story of their achievements and challenges, which we and others can learn from.

Feedback from grant holders we gathered during 2015 and 2016 will help us adjust our processes for awarding and managing grants in ways that help them deliver more effective, innovative change.

Meanwhile our new series of seminars put a spotlight on some of our supported projects and prompted many others to share theirs too.

How to ensure the ideas we support become sustainable and mainstreamed was an area of particular interest for us this year. We looked back at hundreds of projects we’ve supported and spoke to innovators. What we learned is shaping our thinking and, although there are no quick fixes, it helped us produce a summary of key ingredients to sustain health innovation.

In a similar vein, this year we commissioned work to understand better what is preventing commissioners and providers from adopting arts-based projects. As strong advocates of the power of arts in health, we also backed efforts to highlight the field’s achievements on a national level, for example by advising the All Party Parliamentary Group for Arts, Health and Wellbeing.

This year we also explored whether enabling individuals and communities to improve their wellbeing could have a big impact on people’s health. This is a new and evolving picture, but research is helping us to look at the role we may play in driving change in that way.

We have supported a collaboration between the NHS and digital entrepreneurs to move the digitisation of the healthcare system along at pace.

Digital technology can and does improve healthcare, enhance people’s experience and outcomes, and reduce costs. However, implementing digital solutions in the NHS can be long-winded and frustrating.

Further, Faster is an online resource with practical advice and recommendations for NHS professionals and small and medium sized enterprises (SMEs) working in digital health. It features success stories and advice including ‘10 tips for SMEs who want to work with the NHS’, and ‘seven lessons for a digital health board’, contributed by those at the frontline of digital health.

The growing resource has been created through an expert panel that explored the issues from all perspectives, brought together by strategy and communications consultants ZPB Associates.

Key achievements

Increasing our impact

Learning about the difference we make

Accelerating the digitisation of the NHS


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30

Our analysis of some of our recently funded projects

showed that: 65% achieved or exceeded

their goals, 46% said they learned good

lessons, and 48% had strong plans for

sustainability

Trustees’ report


32

Reporting against our priorities for the yearReporting against our priorities for the year

In 2015/16 we continued to support new ideas to tackle major health and care challenges in Lambeth and Southwark.As well as our ‘business as usual’ activities, our business plan identified five key areas of focus for the year:

1. Influencing the agenda of radical innovation in health and healthcare in Lambeth and Southwark

• Delivering effective funding programmes that support high-quality activity, consistent with our strategic priorities and the indicators set to measure the change we want to see locally.

• Increase the support for, and active engagement in, radical innovation amongst our partners and stakeholders.

What we didIn 2015/16 we provided £11.7 million in grants and other charitable expenditure. Through our Health Innovation Fund and investments, we supported new ideas that are transforming healthcare pathways, introducing digital health solutions and tackling some of the biggest health issues in our communities, including cancer, alcohol abuse and psychosis.

We strengthened the way we manage grants. This included ensuring that our application and reporting processes allow us to improve our understanding and better measure how our funded projects are contributing to our theory of change. We also set up regular review meetings to discuss progress and named dedicated grant managers to have a closer relationship with our funded projects. We introduced detailed reporting on our findings for our decision-making committees and an annual review of our grants and their impact.

2. Reviewing our approach to support for local healthcare transformation

• Help to establish a new vehicle for local healthcare reform in Lambeth and Southwark.

• Agree and implement our position on the next phase of development for our key system transformation programmes on older people’s and children’s health, as well as primary care development.

What we didDuring the year we worked closely with key local healthcare providers and decision-makers to strengthen the structures to enable radical change. Following the challenging experience of large system transformation programmes such as SLIC, an independent report proposed a new alliance to formalise existing commitments. Although some of the core recommendations in the report were not adopted by our partners, they have come together under a new strategic partnership of CCGs, local authorities, GPs, local NHS trusts and others. We supported the creation of the new partnership, which brings a renewed opportunity to build on successes and address challenges for deep system transformation.

In 2015/16, whilst the negotiations around the new partnership were underway, we provided continuation support and funding to our large transformation programmes including SLIC, the Children and Young People’s Health Partnership and primary care development across the two boroughs.

3. Managing our assets effectively by delivering a property and estates strategy with a particular emphasis on developing key sites, and a finance and endowment strategy in line with expectations

• Agree plans to develop the Charity’s Royal Street and Guy’s Campus sites with Trustees and stakeholders.

• Handle Endowment according to investment policy to achieve performance in line with expectations.

What we didDuring 2015/16 we applied our investment policy with returns from financial investments in line with market results. Property returns were significantly ahead of comparable benchmarks.

Preliminary work took place to understand better the opportunities on our Royal Street and Guy’s Campus sites. However, our ambition to draw up plans for development could not be achieved within this financial year and has been deferred to 2016/17.

4. Consolidating the new charitable company formed from 1 April 2015

• Establish the new Board and fully recruit and induct new committee members.

What we didDuring a great part of 2015/16 efforts focused on recruiting to our Board and executive team, following the end of Sir William Wells’ chairmanship and of Peter Hewitt’s tenure as Chief Executive after seven years. In that period, two new Board members were also recruited: Barbara Moorhouse and Tom Joy.

Our new Board and all decision-making committees were effectively established and inducted following our reconstitution as a charitable company on 1 April 2015.

5. Preparing for the major review of the Charity’s strategy due to take place in early 2016

• Complete the groundwork to establish the new strategic direction, budget, partnerships and commercial strategy for 2016–21.

What we didChanges in leadership meant the start of the groundwork for our strategy review was postponed until the new executive team was in place, after Kieron Boyle joined us as Chief Executive in April 2016. The strategy work is now expected to complete by autumn 2016.


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In 2016/17 we will continue in our mission to be a catalyst for health and healthcare improvement in Lambeth and Southwark.Our strategic priorities for grant making are informed by health and healthcare needs, particularly major causes of premature death locally – coronary heart disease, cancer, respiratory diseases and stroke – and other health burdens such as mental illness.

Our three strategic priorities are:

• to help transform the healthcare system

• to help create integrated world-class cancer care and services

• to help improve the health of the local population.

As well as our ‘business as usual’ activities, our business plan identifies three key areas of focus for the year:

• effective core delivery

• managing our assets

• acting as an effective catalyst for innovation.

2016/17 will be a year of transition and therefore maintaining effective core delivery will be vital. We will:

• recruit and induct a new CEO to lead the organisation

• introduce a new company secretarial process, following our reconstitution as an independent charity and a registered company limited by guarantee

• review our fundraising activity and act on the recommendations of the review.

Our plans for 2016/17 Our plans for 2016/17

Managing our assets effectively is key to our long-term goals as an independent charitable foundation and can also contribute to our short- and medium-term goals.

We will:

• continue to work with our partners to agree plans across both the London Bridge and Westminster campuses: this remains a fundamental plank of our property and estates strategy

• establish a digital health incubation space to further support the growth of innovation in digital health in Lambeth and Southwark

• support the completion of Ronald McDonald House, a ‘home away from home’ for the families of children being treated at Evelina London.

As a catalyst for innovation in health we improve the health of people who live, work or are treated in Lambeth and Southwark. In 2016/17, we will:

• introduce a new strategic direction for the Charity, accompanied by a refreshed budget – this will follow a strategic review of our current activities and programmes

• work with our partners to deliver significant steps in a number of our current ‘landmark’ projects – notably, the completion of the Guy’s Cancer Centre; the construction of Science Gallery London, and the dissemination of impact and lessons learned through Southwark and Lambeth Integrated Care (SLIC)

• continue to award funding to new programmes of activity, including taking a key decision on the next steps for our work on transforming children and young people’s health

• disseminate what we are learning about the work we fund with key partners and those interested in health innovation to encourage the spread of successful innovation.


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Achievements and performanceBelow are highlights of our achievements across key areas of work.

Our funding:• Continued effecting change through grants and investments: contributed

£11.7 million in charitable expenditure to improving health and care in Lambeth and Southwark.

• Our funding went to our local NHS foundation trusts (£8.3 million), King’s College London (£1.7 million), and others including charities and health commissioners (£1.7 million).

• We awarded 127 grants, including:

° Innovative care pathway for people with heart failure: £1,556,200

° Assertive outreach treatment service for frequent attenders at A&E with alcohol-related problems: £1,338,841

° Pioneering a centre of excellence for intra-operative molecular imaging in cancer surgery: £991,884

° Introduction of robotic kidney transplantation at Guy’s Hospital: £82,567

° Exploring the use of glyceryl trinitrate (GTN) to treat patients with acute psychosis: £121,814

° Improving detection of small for gestational age foetuses: £253,622

° Trial of anti-malarial drug to reduce pregnancy issues in women with antiphospholipid syndrome (APS): £168,377

• Extended our support for ground-breaking research through the King’s Health Partners R&D Challenge Fund and our MRes/PhD programme in Biomedical and Translational Science. In the coming years, these programmes will award grants for research pilots to develop the evidence for large-scale funding and high-quality studentships.

Transforming the system:• Southwark and Lambeth Integrated Care (SLIC) came to an end this year. We have

funded the project throughout its four years and provided £10.6 million in funding.

• The Children and Young People’s Health Partnership continued to hone their model to radically change health and care for our youngest, assisted by a further £583,000 from us.

• We’ve continued to fund development across primary care, including supporting a new generation of leaders.

• TOHETI piloted alternative pathways and introducing cutting-edge technology.

Strategic reportStrategic report

Innovations that serve our communities:• We awarded £446,555 to improve sexual and reproductive healthcare for people

in Lambeth and Southwark with severe mental illness, learning disability or substance misuse issues.

• Our supported Parents and Communities Together is securing community-led social support and creating health education opportunities, including a Parent University.

• We saw clinically significant improvements for young people with psychosis as a result of The Alchemy Project, for which our support came to an end in March 2016.

• Our supported study, Social-Emotional Screening for Under 4s Intervention Study (SUSI), tested ways to improve the mental and emotional wellbeing of high-risk and vulnerable babies and young children in Southwark.

Using our assets:• Buying the head lease of Becket House for £112 million added to our

property portfolio.

• ‘Hidden Treasures’ exhibition held at the Florence Nightingale Museum, made available to the public previously unseen items from our art collection.

• We refreshed artworks across Guy’s and St Thomas’ hospital sites as part of new capital developments.

• Building work began on our supported new Ronald McDonald House to offer a ‘home away from home’ to families with children being treated at Evelina London.

Working with Guy’s and St Thomas’ NHS Foundation Trust:• We awarded £3.5 million to the Trust in grants and other investments for

innovative projects.

• We contributed £499,418 in benefits for Trust staff as part of a multi-year grant.

• 36 staff received awards for professional development.

• Design work started on a new 18-bed cardiac ward thanks to a £3 million gift agreement.

• The Bright Ideas Fund confirmed the first batch of funded projects, now underway.

• Bespoke artworks were installed as part of the redeveloped East Wing at St Thomas’ Hospital.

• Supported and joined in the celebration of the first ever Cancer Survivors’ Day in the UK, held at Guy’s.


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Increasing our impact:• Started a programme of seminars to discuss current issues and challenges in health

innovation and stimulate new ideas and collaboration.

• Continued learning from the hundreds of projects we’ve supported through our Health Innovation Fund to shape our thinking around how best to support health innovation.

• Explored in depth for the first time the impact of funds and grants for children’s health at Guy’s and St Thomas’ NHS Foundation Trust.

• Supported Further, Faster, a project to move the digitisation of the healthcare system along at pace, and bring digital health solutions to people sooner.

Financial review

Financial Key Performance Indicators

OverviewOver the last three years we have committed £68.7m to improving the health and wellbeing of people in Lambeth and Southwark. This year is the third year of our five-year budget cycle for charitable commitments.

Having made large commitments of funds in the first two years of our cycle (of around £28m each year), in 2015/16 we brought balance by reducing charitable expenditure to £11.7m.

Thanks to the hard work of our fundraising team and generous donations from the public, we have seen a much higher level of donations during the year – £3.9m compared with £2.6m last year. We were also fortunate to receive a number of large legacies, amounting to £2.3m.

Returns on our Endowment this year were in line with markets. Returns on the financial asset portfolio were negative, but this is in line with markets, with equity

markets in particular having a difficult start to 2016. However, 2015/16 was another strong year for our property portfolio, with returns of 19.1%. We took the opportunity to expand our portfolio and add to the valuable land we own opposite St Thomas’ Hospital.

Overall, the Charity ended the financial year in a strong position. Net assets increased by 2.2% to £631m. Cash levels decreased across the Charity with increased levels of grant payments in the Unrestricted Fund more than offsetting an increase in cash levels in the Restricted Funds from higher levels of donations and legacies.

Looking forward, the Charity remains soundly financed. From an investment perspective, we recognise that we may be entering a phase of lower and more volatile returns, although as with most issues in investment markets, nothing is certain. We therefore need to maintain our wide exposure to global investment markets to ensure that over the long term we can continue to achieve our goals of spending around 4% of the value of the Endowment each year and ensuring that the Endowment’s remaining value keeps pace with inflation. We will be focusing more on achieving returns through skilful investing through proven managers rather than relying quite so much on market returns. Cash levels are closely monitored to ensure that we can meet our grant and other obligations as they fall due.

Charitable activitiesWith large grants and ambitious programmes in progress, payments against commitments this year rose significantly. We paid out £36.9m in 2015/16, compared with £21.7m last year.

Grants commitments and other charitable expenditure reduced from £28.1m to £11.7m in 2015/16, in line with our plans to meet the five-year target for charitable commitments. Grant commitments and other charitable expenditure are managed in two streams representing the Restricted and Unrestricted Funds. In the Unrestricted Fund, a five-year budget was established starting from 1 April 2013, amounting to £97m.

Three years of this period have now been completed and expenditure is slightly ahead of the budget with 63% of the budget spent. This is because, during the first two years of our current budget cycle, we backed a number of highly ambitious projects with the potential to transform health and wellbeing in Lambeth and Southwark. As a result, our commitments were high, at around £28m per year.

It was a very positive year for donations, legacies and other income, which increased by £2.6m at £6.2m.

This year, the costs of the Charity’s contribution to the King’s Health Partners fundraising team have also been recognised; in previous years, the costs took the form of a donation to Guy’s and St Thomas’ NHS Foundation Trust.

Underlying support costs across the Charity were largely in line with the previous year. However, total support costs increased 7.3% to £2.6m, mainly due to the one-off costs of the borrowing taken on by the Endowment, which included advisory and analysis costs.

Measure Key Performance Key Indications

Cumulative total unrestricted charitable expenditure committed from 1 April 2013.

£61.0m or 63% committed by the third year of our £97m five-year budget cycle.

The Charity is on target to achieve its budgeted five-year commitment for unrestriced charitable expenditure (comprising grants committed, investment and other expenditure) of £97m, having reached 63% of the total within the first three years.

Return on the endowment compared to benchmark.

2.9% return on endowment for 2015/16 compared to benchmark return of 3.0%.

The performance of the Charity’s endowment investments, net of management and other costs, is in line with the Charity’s selected benchmark.

Total support costs. £2.6m compared to £2.4m in 2014/15, an increase of 5.7% after inflation.

The increase in the Charity’s total support costs was entirely due to the one-off costs associated with the new borrowing facilty. If these costs are excluded, total support costs have declined in real terms.


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InvestmentsThis year we saw Endowment returns of 2.9%, in line with markets. The make-up of our investment portfolio was affected this year by the purchase of the head lease of Becket House for £112m in March 2016. As a result of the purchase, allocations to other asset classes were reduced.

Table 1: Performance for the 12 months ending 31 March 2016

Asset class

Strategic asset

allocation band (%)

Strategic /asset

allocation (%)

Allocation as at

31 March 2016 (%)

Actual perfor-

mance (%)

Bench-mark per-formance

(%)

Allocation as at

31 March 2015 (%)

Global Equities 27-47 36 35.9 (5.4) (4.9) 44.7

Private Equity 5-15 15 7.6 14.2 5.3 7.6

Hedged Equities 0-12 0 0.8 (4.5) (6.6) 1.0

Absolute Return 0-12 10 7.2 (6.4) (5.3) 10.4

Credit 5-15 8 3.6 (0.7) (0.1) 7.1

Cash 0-10 4 2.2 0.6 0.6 2.6

Composite financial asset class performance – local currency (2.6) (2.9 )

Property 20-35 27 42.7 19.1 11.7 26.6

Composite asset class performance – local currency 2.1 1.0

Currency gain/(loss) 1.1 2.0

Fees and other expenses (0.2)

Return on gross investment assets 3.0 3.0

Effect of loans (0.1)

Return on the Endowment 2.9

All performance figures are net of management costs. The relevant benchmarks are identified in the Charity’s Distribution Rule and Investment Policy.

The loan from the Unrestricted Funds and the external borrowing had a marginal negative effect on returns as the return on the underlying assets was marginally below the total interest cost.

Returns on the financial asset portfolio were negative, in line with markets generally. Equity markets, in particular, had a difficult start to 2016, as did absolute return funds. However, the property portfolio saw returns of 19.1% (compared to 27.0% in 2015), with annualised rents increasing by 10% and strong capital value increases across all portfolios.

The Charity’s expendable and permanent endowment funds are invested on a total return basis. Information relating to the trust for investment and unapplied total return for the permanent endowment funds is shown in note 17 to the financial statements on page 80.

Longer-term performanceThe Distribution Rule and Investment Policy sets out the Charity’s approach to maintaining the value of the Endowment over the long term. This is defined as keeping the value of the Endowment in line with the UK’s Retail Prices Index (RPI), measured over rolling five-year and 20-year periods.

The Endowment was recognised in the accounts in March 1999 so its performance history can be traced back 17 years. The graph below illustrates that, over that period and thanks to recent performance, the Endowment’s value is now £83m higher than its indexed starting value. This level of outperformance was last seen in 2006 and 2007 when investment markets were strong prior to the dramatic market changes of 2008.

Figure 1: Endowment vs RPI

Net

Ass

et V

alue

(£ m

illion

s)

Endowment - actual

Endowment - indexed to UK RPI

0

100

200

300

400

500

600

700

2016

2015

2014

2013

2012

2011

2010

200

9

200

8

2007

200

6

200

5

2004

2003

2002

2001

200

0

199

9


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Reserves policyDuring the year our total Unrestricted Funds increased from £14.8m to £30.5m due mainly to the reduction in the level of charitable expenditure, as already detailed. As at 31 March 2016, £27.1m of these funds were designated in the form of properties and other assets that are used in the provision of our charitable activities. This leaves the Charity with free reserves of £3.4m (2015: deficit of £10.8m), which are managed through a Distribution Account.

The Charity plans the distribution of its Unrestricted Funds through a five-year budget. The first such budget was approved by Trustees for the period 1 April 2013 to 31 March 2018. Performance against the budget is reviewed annually and a new budget is normally established after three financial years to ensure that an adequate long-term planning horizon is maintained for the Charity’s grants programmes. The budget is based on the distribution of all available resources projected to arise in the five-year period covered by the budget. In view of the change of leadership of the Charity, it was decided to delay the formulation of a new five-year grants budget by a year to commence on 1 April 2017.

The Charity maintains the ability to transfer funds from the expendable Endowment if necessary to meet its disbursement targets.

Plans for the futureAs well as our ‘business as usual’ activities, our business plan identifies three key areas of focus for 2016/17: effective core delivery; managing our assets; and acting as an effective catalyst of innovation.

2016/17 will be a year of transition and therefore maintaining effective core delivery will be vital. We will also continue to manage our assets effectively, which is key to our long-term goals.

In 2016/17 we will: introduce a new strategic direction for the Charity; work with our partners to deliver significant steps in a number of our current ‘landmark’ projects; continue to award funding to new programmes of activity; and widely disseminate what we are learning about the work we fund.

Strategic report Strategic report

Principal risks and their management We believe we have appropriate procedures and controls to identify and mitigate against risks we are exposed to. Systems include:

• A long-term strategic plan, a five-year budget for charitable support and an annual budget for all income and expenditure – all of which are approved by the Trustees.

• Regular consideration by the senior management team and Trustees of financial results and performance indicators.

• Periodic review of systems and controls by the Audit Committee supported by internal audit reports.

• Identification, management of ongoing review of risks. Our risk register is reviewed regularly to ensure these are managed appropriately and promptly.

We have identified the following principal areas of risk, and ways to manage them:

Grants• Failure to source sufficient number or value of high-quality grant

applications or other charitable projects. Mitigation actions include reaching out and networking with potential stakeholders, and reviewing the design and promotion of funding programmes.

• Poor decision-making in the assessment and award of grant applications or other funding. Mitigation includes ensuring that relevant committees are well staffed and run effectively. We make use of information from the evaluation of grant outcomes to inform the decision-making process.

• Failure to effectively manage and monitor progress of grants and other charitable activities. We avoid this by having robust grant management processes in place and playing an active role in the governance of larger projects.

Investment• Poor selection and management of investment advisors. We annually review the

performance of managers and advisers and adjust where needed.

• Failure to maintain investment risk levels. We discuss how to react when markets are volatile to ensure we are willing to hold our investments in such circumstances.

Operations• Failure to develop succession plans and recruit effectively for key staff. We maintain

succession plans and facilitate senior staff involvement in the strategic development of the charity, and an open culture within the senior management team.

Reputation• Failure of major grants, or other charitable or investment projects. We ensure that

stakeholders understand that innovative projects, by their very nature, don’t always succeed, and we encourage an open culture between the Charity and its partners to help avoid concealment of problems.


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Structure, governance and managementStructure, governance and management

Charity’s reconstitution and objectsOn 1 April 2015, Guy’s and St Thomas’ Charity reconstituted as an independent charity. We are no longer governed by health service legislation and, instead, we are solely regulated by the Charity Commission. We have reconstituted to simplify our administration and to limit our Trustees’ liability. Our new status also confirms our independence from the Department of Health and allows us to continue on our mission to work as a catalyst for healthcare innovation in Lambeth and Southwark.

We have a new charity number (1160316) and are registered as a company limited by guarantee (with number 9341980).

To comply with regulation, the new charitable company became the Trustee of the previous charity (which was then renamed Guy’s and St Thomas’ Endowed Charity) in place of the Trustees, and the Trustees were appointed directors and Trustees of the new charitable company.

Today our Unrestricted Funds – and those Restricted Funds that were not separate charities linked to us – are now part of the new charitable company. The new charitable company was also appointed Trustee of the linked charities.

The Charity Commission approved a new scheme to update and simplify the objects and governance arrangements for Guy’s and St Thomas’ Endowed Charity and some of the linked charities.

The object of Guy’s and St Thomas’ Charity is any charitable purpose or purposes relating to the general or any specific purposes of Guy’s and St Thomas’ NHS Foundation Trust or the purposes of the health service (as described in section 1 of the NHS Act 2006 or any statutory modification of that section).

We support initiatives that make a real difference to people’s health and healthcare. We invest our finance and other assets into areas that have the potential to effect lasting change.

We seek new ideas from everyone, from senior executives and frontline staff from NHS trusts, to GPs, local government, social entrepreneurs, third sector organisations, community groups or private companies. We support ideas from the public, third and private sectors and have an especially close relationship with Guy’s and St Thomas’ NHS Foundation Trust.

Grants policyAll grant applications are reviewed by the Charity against our criteria for quality and value for money, with the more significant applications also receiving independent reviews by external experts. Ongoing projects are monitored to ensure that they are achieving their milestones and are formally evaluated through the life of the grant and at project completion.

We work with many partners and fund innovative projects and ideas that will make a positive contribution to our strategic priorities: improving the health of the local population and those who use our local NHS healthcare facilities; helping to create integrated, world-class cancer care and services; and instigating system-wide transformation of healthcare.

Appointment of TrusteesFollowing our reconstitution on 1 April 2015, Trustee appointments are made by the Trustees after open competition. Guy’s and St Thomas’ NHS Foundation Trust has the right to appoint and remove one Charity Trustee. Trustees are given a thorough induction to the Charity and its staff and operations when they join our Board, and training needs are also addressed.

Trustee changes Sir William Wells retired as Chair of the Board and a Trustee in September 2015 and was succeeded to the role by Wol Kolade, an existing Trustee of the Charity. Rory Maw stepped down as a Trustee in July 2015, having completed two four-year terms as a Trustee. Barbara Moorhouse and Tom Joy were appointed as Trustees in September 2015 and October 2015, respectively.

Powers of investmentThe Charity’s powers of investment in its own right are principally derived from its Articles of Association and the Companies Act 2006; in exercising these powers, the Trustees must act in accordance with their duties as charity trustees and as company directors as set out in the Charities Act 2011 and the Companies Act 2006 and as derived from case law. The Charity’s powers of investment in its capacity as corporate trustee of the Guy’s and St Thomas’ Endowed Charity and the other linked charities are principally derived from the revised Scheme approved by the Charity Commission in 2015 and the Trustee Act 2000; in exercising these powers, the Charity must act in accordance with its duties as set out in the Scheme and the Trustee Act 2000. In each case, these powers of investment are wide, allowing the Trustees and the Charity in its capacity as corporate trustee of the Endowed Charity and the other linked charities to invest in such stocks, funds, shares, securities or other investments as they see fit.

Public benefitThe Trustees confirm that they have complied with the duty in section 4 of the Charities Act 2011 and that they have considered the Charity Commission’s guidance on public benefit in shaping the Charity’s objectives and planning future activities.

The Trustees are conscious of the need to ensure that the activities of the Charity comply with the public benefit requirement and they believe that all the charitable activities, most of which are described in this report, are for the public benefit.


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RemunerationThe governing principles of the Charity’s remuneration policy are:

• To ensure delivery of the Charity’s objectives.

• To attract and retain a motivated workforce with the skills and expertise necessary for organisational effectiveness.

• That remuneration should be equitable and coherent across the organisation.

• To take account of the purposes, aims and values of the Charity.

• To ensure that pay levels and pay increases are appropriate in the context of the interests of our beneficiaries.

Senior executive remunerationIn relation to deciding remuneration for the Charity’s senior executives, the Charity considers the potential impact of remuneration levels and structures of senior executives on the wider Charity workforce and will take account of the following additional principles:

• Ensuring that the Charity can access the types of skills, experiences and competencies that it needs in its senior staff.

• The nature of the wider employment offer made to senior employees, where pay is one part of a package that includes personal development, personal fulfilment and association with the public benefit delivered. The Charity recognises that it is, on occasion, possible to attract senior executives at a discount to public sector or private sector market rates.

Remuneration for the year ended 31 March 2016 comprised salary and pension contributions. There are no other pecuniary benefits for senior or other staff at the Charity.

Table 2: Remuneration for the year ended 31 March 2016

Annual salary

Pension contributions1

Total remuneration

Increase over

2014/152

Peter Hewitt Chief Executive £130,440 £18,653 £149,093 2%

David Renton Finance and Development Director £110,664 £15,327 £125,991 2%

Oliver Smith Director of Strategy and Innovation £94,068 £13,452 £107,520 2%

Gayle Willis3

Director of Communications £53,856 £7,284 £61,140 2%

1 Contributions were made by the Charity to the NHS Pension Scheme at the Scheme rate of 14.3% of pay in relation to the membership of that Scheme of Peter Hewitt, Oliver Smith and Gayle Willis. David Renton received payment in lieu of the pension contribution and payments were made for life/critical illness cover.

2 All staff were awarded a pay increase of 2% on 1 April 2015.

3 Gayle Willis was appointed on 29 September 2014 on an annual salary of £52,800 for a three-day week. The percentage increase is based on this annual amount.

Trustees’ responsibilitiesThe Trustees (who are also directors of Guy’s and St Thomas’ Charity for the purposes of company law) are responsible for preparing the Trustees’ Annual Report (including the Strategic Report) and the financial statements in accordance with applicable law and regulations.

Company law requires the Trustees to prepare financial statements for each financial year. Under that law the Trustees have prepared the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of the affairs of the charitable company and the Group and of the incoming resources and application of resources, including the income and expenditure, of the Group for that period. In preparing these financial 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 judgements and estimates that are reasonable and prudent

• state whether applicable UK Accounting Standards have been followed, 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 charitable company will continue in business.

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company’s transactions and disclose with reasonable accuracy at any time the financial position of the charitable company and the Group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Trustees are responsible for the maintenance and integrity of the charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

In so far as the Trustees are aware, there is no relevant audit information of which the company’s auditors are unaware and they have taken all the steps that they ought to have taken as a Trustee in order to make themselves aware of any relevant audit information and to establish that the company’s auditors are aware of that information.

Signed on behalf of the Trustees

Barbara Moorhouse21 September 2016


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Organisation Our staffOur Executive Team is made up of:

Peter Hewitt, Chief Executive (until March 2016)

Kieron Boyle, Chief Executive (from April 2016)

Oliver Smith, Director of Strategy and Innovation

David Renton, Finance and Development Director

Gayle Willis, Director of Communications

Details of our Executive Team and a full list of our staff members are available on our website.

Trustee BoardTrustees who held office during the year ended 31 March 2016 or are currently Trustees are as follows:

Wol Kolade is the Managing Partner of private equity investor Livingbridge. Wol holds a number of non-executive positions and he is a former Chairman of the British Private Equity and Venture Capital Association. He has been a Governor at the London School of Economics and Political Science since 2002. He became Chairman of the Charity in October 2015.

Professor David Colin Thomé brings with him extensive experience of primary care as a GP for more than 30 years, as well as significant knowledge of national policy as the Department of Health’s National Clinical Director for Primary Care from 2001-10. He also chaired the Long Term Conditions Board and co-chaired and led the Primary and Community Care Strategy (PCSS) for the NHS Next Stage (Lord Darzi’s) Review, published in 2008. He subsequently chaired the PCSS Clinical Advisory Group and co-chaired the Transforming Community Health Services board.

Ian Dalton CBE is President, Global Government and Health, at British Telecom. Ian has 28 years’ experience in the NHS and social care, and was one of England’s most senior healthcare leaders. Before BT, he was Chief Operating Officer and Deputy Chief Executive Officer for NHS England. He has held many senior roles in the NHS including CEO of NHS North of England, MD of Provider Development, National Director of NHS Flu Resilience and CEO of NHS North East. He has also been CEO of two hospital trusts and worked on the reconstruction of civilian health services in Iraq.

Sue Gallagher has held a number of very senior roles in the NHS and was Chief executive of Merton, Sutton and Wandsworth Health Authority from 1997 to 2002. More recently she has worked with the Department of Health as a consultant and with many individuals and organisations in the public and third sectors as an executive coach, facilitator and development consultant. Sue is lay member on Lambeth Clinical Commissioning Group and a stakeholder governor of Guy’s and St Thomas’ and King’s College Hospital NHS Foundation Trusts.

Tom Joy (appointed on 20 October 2015) began his career as a graduate trainee at Royal Sun Alliance Investment Management. He then joined Schroders and held a variety of different roles culminating in becoming Head of Investment – Multi-Manager. He then joined RMB Asset Management as Chief Investment Officer. In 2009, he became Director of Investments at the Church Commissioners for England, where he has refocused the investment strategy and diversified the portfolio. Tom chairs our Investment Committee and is also a Board member of the Pension Protection Fund.

Barbara Moorhouse (appointed on 1 September 2015) joined the Charity in September 2015. She brings a depth of strategic, operational and financial leadership experience built up over a long career in the private and public sectors. After spending most of her career as Chief Operating Officer/Chief Finance Officer in international quoted companies, she then held senior posts at the Ministry of Justice and the Department for Transport before being Chief Operating Officer of Westminster City Council from 2010 until 2013 and. Her non-executive roles include the Lending Standards Board and the West Hampshire CCG. Barbara also chairs our Audit Committee.

Sally Tennant brings many years’ experience in the banking and investment sectors. She is currently an independent wealth management adviser, after serving as Chief Executive of Kleintworth Benson from 2011 to March 2014. Sally was previously Chief Executive of Lombard Odier (UK) Ltd, after four years as Chief Executive of Schroders Private Banking. Her early career was spent at Morgan Grenfell Asset Management and at S.G. Warburg & Co. Sally is a trustee of the STARS Foundation.

Rory Maw (stepped down on 31 July 2015) is a Fellow and Bursar of Magdalen College, Oxford. He was previously Partner and Chief Financial Officer of Bridges Ventures, a private equity firm and an investment banker at Schroders and Morgan Stanley. For eight years to 2013 he was a non-executive director of Guy’s and St Thomas’ NHS Foundation Trust.

Sir William Wells, (retired on 30 September 2015) was Chairman of the Charity from 30 November 2009. He has held numerous senior positions in the private and public sectors, over a career spanning more than 40 years. He has chaired a number of health-related and financial companies.


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We have a number of committees who report to the Trustee Board, and funding committees who advise the Board on charitable expenditure.

Our committees are made up of experts in their respective fields. A list of our committee members can be found on our website.

Investment CommitteeThis committee was established to take responsibility for investment strategy and management. It reports to the Trustee Board.

Audit CommitteeThis committee was established to take responsibility for overseeing financial governance and all matters relating to the internal and external audit. It reports to the Trustee Board.

Remuneration CommitteeThis committee was established to develop a policy on staff remuneration and approve overall spending on staff remuneration and benefits. The committee also approves senior executive remuneration.

Strategy CommitteeThis funding committee advises the Board on funding decisions of above £2 million and has responsibility to oversee and monitor the grants strategy. Members include representatives from our major local partners alongside national health and health policy experts.

Major Funding CommitteeThis committee advises the Board on funding decisions up to £2 million. Members include senior leaders from our local partners - including Guy’s and St Thomas NHS Foundation Trust, King’s Health Partners and our local CCGs - as well as national health experts.

Executive Funding TeamThis committee makes funding decisions of up to £250,000.

KHP Research and Development Challenge Fund CommitteeThis committee meets three times a year and is responsible for making recommendations to the Executive Funding Team in relation awards from the KHP Research and Development Challenge Fund. Details are available on the King’s Health Partners website.

Special Purpose Funds CommitteeThis is an advisory committee to the Executive Funding Team. The committee meets quarterly and oversees the management of our Special Purpose Funds.

Evelina Children’s Fund CommitteeThis committee meets quarterly and is responsible for considering applications for funding from the Evelina Children’s Fund.

Cancer Funds CommitteeThis committee meets three times a year and is responsible for overseeing Special Purpose Funds benefiting cancer services and considering applications for funding to improve cancer care at Guy’s and St Thomas’ NHS Foundation Trust.

Relationship with other charitiesNewcomen Collett FoundationThe Charity has the right to appoint a representative governor to serve on the Newcomen Collett Foundation Board of Trustees. Ms Helen Cockerill was re-appointed in 2013 for four years.

St Olave’s & St Saviour’s Schools FoundationThe Charity has the right to appoint a representative to serve on the Foundation Court of Governors of St Olave’s & St Saviour’s Schools Foundation.

Mr Malcolm Edwards is serving as Foundation Court Governor (Trustee) for St Olave’s & St Saviour’s Schools Foundation until February 2018.

Mrs Elizabeth Edwards is serving as Foundation Court Governor (Trustee) for St Olave’s and St Saviour’s Schools Foundation until May 2018.



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Auditor’s report and financial statementsStructure, governance and management

AdvisorsAuditors (Statutory)Kingston Smith LLP Devonshire House60 Goswell RoadLondon EC1M 7AD

Auditors (Internal) KPMG LLP15 Canada Square Canary Wharf London E14 5GL

BankersNatWest91 Westminster Bridge RoadLondon SE1 7HT

Insurance BrokersH W Wood LimitedThe Baltic Exchange38 St Mary AxeLondon EC3A 8BH

Investment AdvisorsPartners Capital LLP5 Young StreetLondon W8 5EH

Land AgentsSavillsEastgate HouseEastgate StreetWinchester SO23 8DZ

Property ManagersAllsop Letting and ManagementPrinces House53-54 Queens RoadBrighton BN1 3XB

Fresh Student LivingThird Floor7-9 Swallow StreetLondon W1B 4DE

Lambert Smith HamptonUK House180 Oxford StreetLondon W1D 1NN

SolicitorsWithers LLP16 Old BaileyLondon EC4M 7EG

Macfarlanes LLP20 Cursitor StreetLondon EC4A 1LT


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Auditor’s report

Independent Auditor’s Report to the Members of Guy’s and St Thomas’ Charity We have audited the financial statements of Guy’s and St Thomas’ Charity for the year ended 31 March 2016 which comprise the Consolidated Statement of Financial Activities, the Consolidated and Charity Balance Sheets, the Consolidated Statement of Cash Flows, and the related notes. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) including FRS 102 ‘The Financial Reporting Standard Applicable in the UK and Ireland’.

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members and trustees those matters which we are required to state to them in an auditors’ report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to any party other than the charitable company and charitable company’s members 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 Trustees’ Responsibilities Statement, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view.

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 An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material 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 been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the trustees; and the overall presentation of the financial statements and to identify any information that is apparently materially incorrect based on, or materially inconsistent with, the knowledge acquired by us in the course of performing the audit. In addition we read all the financial and non-financial information in the Annual Report to identify material inconsistencies with the audited financial statements. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report.


57

For the year ended 31 March 2016

2016 2015

Notes

UnrestrictedFunds£000

RestrictedFunds£000

EndowmentFunds£000

TotalFunds

£000



EndowmentFunds£000

TotalFunds

£000

Income from:

Investments 2 1,969 68 11,159 13,196 2,091 77 10,818 12,986

Release from endowment funds 3 19,902 215 (20,117) - 19,000 63 (19,063) -

Donations, legacies and other 4 1,058 5,188 - 6,246 945 2,675 - 3,620

Total income 22,929 5,471 (8,958) 19,442 22,036 2,815 (8,245) 16,606

Expenditure on:

Raising funds

Investment costs 5 (105) - 6,091 5,986 (100) - 6,544 6,444

Fundraising cost 5 467 - - 467 - - - -

362 - 6,091 6,453 (100) - 6,544 6,444

Charitable activities

Grants 5 8,912 1,449 - 10,361 18,532 1,878 - 20,410

Other charitable activities 5 1,371 2,285 - 3,656 8,782 1,520 - 10,302

10,283 3,734 - 14,017 27,314 3,398 - 30,712

Total expenditure 7 10,645 3,734 6,091 20,470 27,214 3,398 6,544 37,156

Net income/(expenditure) before gains and losses on investments 12,284 1,737 (15,049) (5,178) (583) (14,789) (20,550)

Net gains on revaluation and disposal of investments 9 3,585 - 11,194 14,779 2,434 - 99,076 101,510

Net income/(expenditure) 15,869 1,737 (3,855) 13,751 (2,744) (583) 84,287 80,960

Transfers between funds 19 (193) 193 - - 107 409 (516) -

Other recognised gains

Gain on revaluation of tangible fixed assets 8 46 - - 46 1 - - 1

Net movement in funds 15,722 1,930 (3,855) 13,797 (2,636) (174) 83,771 80,961

Reconciliation of funds

Total funds brought forward 14,824 9,398 593,243 617,465 17,460 9,572 509,472 536,504

Total funds carried forward 30,546 11,328 589,388 631,262 14,824 9,398 593,243 617,465

The notes on pages 63 to 87 form part of these financial statements

Consolidated Statement of Financial Activities(incorporating an Income and Expenditure Account)

Opinion on financial statementsIn our opinion the financial statements:

• give a true and fair view of the state of the group’s and the parent charitable company’s affairs as at 31 March 2016 and of the group’s incoming/outgoing resources and application of resources, including its income and expenditure, for the year then ended; and

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

• have been prepared in accordance with the requirements of the Companies Act 2006.

Matters on which we are required to report by exception We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

• the parent charitable company has not kept adequate accounting records, or returns adequate for our audit have not been received from branches not visited by us; or

• the parent charitable company’s financial statements are not in agreement with the accounting records and returns; or

• certain disclosures or trustees’ remunerations specified by law are not made; or

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

Nicholas St. J. Brooks (Senior Statutory Auditor) for and on behalf of Kingston Smith LLP, Statutory Auditor

21 September 2016 Devonshire House, 60 Goswell Road, London EC1M 7AD

Auditor’s report

(1,028)

Guy’s and St Thomas’ Charity – company limited by guarantee registered in England and Wales No. 9341980


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Balance Sheet

As at 31 March 2016

2016 2015

Notes



EndowmentFunds£000

Total at31 March

£000



EndowmentFunds£000

Total at31 March

£000

Fixed assets

Tangible assets 8 4,438 - - 4,438 4,401 - - 4,401

Investments 9 22,842 - 684,694 707,536 21,413 - 628,031 649,444

Total fixed assets 27,280 - 684,694 711,974 25,814 - 628,031 653,845

Current assets

Debtors 10 3,557 347 2,041 5,945 858 489 2,835 4,182

Inter-fund loan 11 50,000 - (50,000) - 50,000 - (50,000) -

Cash and short term deposits 12 2,073 14,865 15,808 32,746 19,356 12,096 15,092 46,544

Total current assets 55,630 15,212 (32,151) 38,691 70,214 12,585 (32,073) 50,726

Creditors: Amounts falling due within one year:

Grant creditors 6 35,660 2,886 - 38,546 49,699 2,046 - 51,745

Other creditors 13 3,287 740 3,155 7,182 2,085 659 2,715 5,459

38,947 3,626 3,155 45,728 51,784 2,705 2,715 57,204

Net current assets 16,683 11,586 (35,306) (7,037) 18,430 9,880 (34,788) (6,478)

Total assets less current liabilities 43,963 11,586 649,388 704,937 44,244 9,880 593,243 647,367

Creditors: Amounts falling due after one year

Grant creditors 6 13,396 - - 13,396 27,404 - - 27,404

Other creditors - 258 - 258 1,978 482 - 2,460

Loans 14 - - 60,000 60,000 - - - -

13,396 258 60,000 73,654 29,382 482 - 29,864

Total net assets 30,567 11,328 589,388 631,283 14,862 9,398 593,243 616,503

Funds of the charity

Income funds

Unrestricted 14,665 - - 14,665 218 - - 218

Unrestricted – revaluation reserve 18 15,902 - - 15,902 14,644 - - 14,644

15 30,567 - - 30,567 14,862 - - 14,862

Restricted 16 - 11,328 - 11,328 - 9,398 - 9,398

30,567 11,328 - 41,895 14,862 9,398 - 24,260

Capital funds

Endowment funds - - 358,064 358,064 - - 351,125 351,125

Endowment funds – revaluation reserve 18 - - 231,324 231,324 - - 242,118 242,118

17 - - 589,388 589,388 - - 593,243 593,243

Total funds 30,567 11,328 589,388 631,283 14,862 9,398 593,243 617,503

Approved by the Trustees and signed on their behalf:

Barbara Moorhouse

21 September 2016


Consolidated Balance Sheet

As at 31 March 2016

2016 2015

Notes



EndowmentFunds£000

Total at31 March

£000



EndowmentFunds£000

Total at31 March

£000

Fixed assets

Tangible assets 8 4,438 - - 4,438 4,401 - - 4,401

Investments 9 22,828 - 685,634 708,462 21,358 - 628,937 650,295

Total fixed assets 27,266 - 685,634 712,900 25,759 - 628,937 654,696

Current assets

Debtors 10 3,557 347 1,101 5,005 846 489 1,934 3,269

Inter-fund loan 11 50,000 - (50,000) - 50,000 - (50,000) -

Cash and short term deposits 12 2,133 14,865 15,815 32,813 19,496 12,096 15,093 46,685

Total current assets 55,690 15,212 (33,084) 37,818 70,342 12,585 (32,973) 49,954

Creditors: Amounts falling due within one year

Grant creditors 6 35,660 2,886 - 38,546 49,699 2,046 - 51,745

Other creditors 13 3,354 740 3,162 7,256 2,196 659 2,721 5,576

39,014 3,626 3,162 45,802 51,895 2,705 2,721 57,321

Net current assets 16,676 11,586 (36,246) (7,984) 18,447 9,880 (35,694) (7,367)

Total assets less current liabilities 43,942 11,586 649,388 704,916 44,206 9,880 593,243 647,329

Creditors Amounts falling due after one year

Grant creditors 6 13,396 - - 13,396 27,404 - - 27,404

Other creditors - 258 - 258 1,978 482 - 2,460

Private placement loan 14 - - 60,000 60,000 - - - -

13,396 258 60,000 73,654 29,382 482 - 29,864

Total net assets 30,546 11,328 589,388 631,262 14,824 9,398 593,243 617,465

Funds of the charity

Income funds

Unrestricted 14,382 - - 14,382 17 - - 17

Unrestricted - revaluation reserve 18 16,164 - - 16,164 14,807 - - 14,807

15 30,546 - - 30,546 14,824 - - 14,824

Restricted 16 - 11,328 - 11,328 - 9,398 - 9,398

30,546 11,328 - 41,874 14,824 9,398 - 24,222

Capital funds

Endowment funds - - 357,154 357,154 - - 350,248 350,248

Endowment funds - revaluation reserve 18 - - 232,234 232,234 - - 242,995 242,995

17 - - 589,388 589,388 - - 593,243 593,243

Total funds 30,546 11,328 589,388 631,262 14,824 9,398 593,243 617,465

Approved by the Trustees and signed on their behalf:

Barbara Moorhouse

21 September 2016


Guy’s and St Thomas’ Charity – company limited by guarantee registered in England and Wales No. 9341980 Guy’s and St Thomas’ Charity – company limited by guarantee registered in England and Wales No. 9341980


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60

1. Accounting Policies

1.1 GeneralThe financial statements have been prepared under the historical cost convention, with the exception of: investments and works of art which are included at market value; and grant creditors payable after more than one year which are included at their present value. The financial statements have been prepared in accordance with Financial Reporting Standard 102 (“FRS 102”), the Statement of Recommended Practice for Accounting and Reporting by Charities issued in January 2015 (“Charity SORP”), and applicable United Kingdom law and accounting standards. This is the first year that the Charity has prepared its financial statements under FRS102 and the resulting adjustments, of which the principal is the adjustment of the value of grant creditors from estimated settlement amount to net present value, are detailed in note 23. The Charity is a Public Benefit Entity as defined by FRS 102.

1.2 Going concernThe trustees have assessed whether the use of the going concern basis is appropriate and have considered possible events or conditions that might cast significant doubt on the ability of the charity to continue as a going concern. The trustees have made this assessment for a period of at least one year from the date of approval of the financial statements. In particular the trustees have considered the charities forecasts and projections and have taken account of pressures on income. After making enquiries the trustees have concluded that there is a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. The charity therefore continues to adopt the going concern basis in preparing its financial statements.

1.3 Transfer of assets and merger accountingOn 1 April 2015 the Charity was reconstructed as an idependent charity and ceased to be an NHS charity. The entire undertaking of the unincorporated trust then known as Guy’s and St Thomas’ Charity (the ‘Old Charity’) was transferred to a new charitable company called Guy’s and St Thomas’ Charity limited by guarantee and registered in England and Wales with company number 09341980 and registered with the Charity Commission for England and Wales with registered charity number 1160316 (the ‘Charity’) as follows:

• The legal and beneficial title to the unrestricted assets of the Old Charity were transferred to the Charity.• The restricted funds of the Old Charity were transferred to the Charity to be held on the same terms.• The transfer of ownership of the expendable endowment to the Charity was effected by the Charity Commission appointing the Charity as the sole

corporate trustee of the Old Charity in place of the existing trustees.• The transfer of ownership of the permanent endowments in related charities to the Charity was effected by the Charity Commission appointing the Charity

as the sole corporate trustee of the Old Charity and as trustee of its linked charities.

The reconstruction has been treated as a merger and comparative amounts have been presented as if the reconstruction had been in effect for the entire previous year; however there is no material difference between the restated comparative amounts and those reported by the Old Charity for the year ended 31 March 2015.

1.4 Fund accountingThe Charity maintains various types of funds and descriptions of these funds are provided in notes 15 to 17. Income and expenditure on these funds is shown separately within the Statement of Financial Activities and analysed into their main components also in notes 15 to 17.

There are three main types of funds as follows:

• Unrestricted funds are expendable at the discretion of the Trustees in furtherance of the objects of the Charity.• Restricted funds represent funds where the grants and donations are requested by the donor to be spent on a specific purpose.• Endowment funds are funds which are held as the long term capital of the Charity to provide an on-going income to expend in furtherance of the

Charity’s objects. The Charity has two types of endowment funds; those expendable at the Trustees’ discretion (expendable endowment funds) and those which must be permanently held as capital (permanent endowment funds). A total return approach to investment has been adopted for both types of endowment fund under which the funds are invested to produce an investment return without regard to whether that return is in the form of income or capital appreciation. The Charity has developed a distribution rule which is designed to produce a consistent and sustainable amount to be transferred annually to the unrestricted fund whilst maintaining the value of the endowments in real terms over the long term (see note 3).

1.5 Critical accounting estimates and judgementsThe Charity’s management is required to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements about carrying values of assets and liabilities that are not readily apparent from other sources. There is one judgement which has a significant risk of causing a material adjustment to the carrying amount of assets and liabilities, which is that relating to the discount rate applied to the calculation of the present value of grant creditors payable after more than one year. The Charity has assessed the most appropriate discount rate to be the interest rate of the inter-fund loan from the unrestricted fund to the endowment fund, as described in note 11, as this best reflects the opportunity cost of income foregone.

1.6 Incoming resourcesAll incoming resources received or receivable are brought into account and allocated as appropriate to one of the three types of fund – unrestricted, restricted or endowment.

• Donations, gifts, legacies and investment income are accounted for when received or when due and receipt is probable.• Dividends and interest are brought into account gross of recoverable UK and overseas taxation. 1.7 Resources expendedAll expenditure is accounted for on an accruals basis. The majority of costs are attributable directly to specific activities. Shared costs are apportioned to activities based on an estimate of the proportion of staff time spent on each of these areas of work. Expenditure in the accounts is analysed into the following activities:

• Expenditure on raising funds comprise costs incurred in managing the Charity’s investment portfolio and maintaining the Charity’s investment properties as well as the amount charged to the Charity for fundraising services.

• Grants awarded are brought into account when a constructive obligation exists for the Trustees to make the grant.• Other charitable activities relate to expenditure in support of beneficiaries which is not made as part of the normal grants programme. It includes

expenditure on Arts in the hospitals and day to day beneficiary expenditure incurred through special purpose funds.

Notes to the Financial StatementsConsolidated Statement of Cash Flows

For the year ended 31st March 2016

Notes

31 March2016£000

31 March2015£000

Cash flows from operating activities:

Net cash used in operating activities (43,552) (33,651)

Cash flows from investing activities:

Rents, dividends and interest from investments 13,196 12,986

Proceeds from sale of investments 167,357 244,820

Purchase of investments (210,917) (231,815)

Net cash (used in)/provided by investing activities (30,364) 25,991

Cash flows from financing activities:

Cash inflows from new borrowing 60,000 -

Net cash provided by financing activities 60,000 -

Change in cash and cash equivalents in the reporting period (13,916) (7,660)

Cash and cash equivalents at the beginning of the reporting period 12 46,685 54,411

Change in cash and cash equivalents due to exchange rate movements 44 (66)

Cash and cash equivalents at the end of the reporting period 12 32,813 46,685

Reconciliation of net income to net cash flow from operating activities

31 March2016£000

31 March2015£000

Net income for the reporting period 13,751 80,960

Adjustments for:

Depreciation charges 44 44

Gains on investments (14,779) (101,510)

Programme related investments written off 128 -

Rents, dividends and interest from investments (13,196) (12,986)

Donated fixed assets (35) -

Increase in debtors (1,736 ) (527)

Decrease in grants payable (27,207) (2,000)

(Decrease)/increase in other creditors (522) 2,368

Net cash used in operating activities (43,552) (33,651)

Decrease in grants payable comprises:

Grants awarded 9,066 18,892

Grants paid out (36,880) (21,709)

Change in fair value 607 817(27,207) (2,000)



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2. Income from investments

2016 2015

Unrestricted Funds £000

Restricted Funds £000

Endowment Funds £000

Total Funds

£000




Total Funds

£000

Financial investments


Dividends, distributions and interest

Global equity - - 1,413 1,413 - - 2,310 2,310

Private equity - - 68 68 - - 128 128

Credit - - 114 114 - - 482 482

Programme related financial investments

Royalties 5 - - 5 8 - - 8

5 - 1,595 1,600 8 - 2,920 2,928

Property investments

Property investments

Rents - - 9,634 9,634 - - 8,448 8,448

Other income - - 888 888 - - 469 469

Programme related property investments

Rents 761 - - 761 763 - - 763

Other income - - - - 88 - - 88

761 - 10,522 11,283 851 - 8,917 9,768

Interest

Cash and short term deposits 95 68 150 313 152 77 61 290

Inter-fund loan (see note 11) 1,108 - (1,108) - 1,080 - (1,080) -

1,203 68 (958) 313 1,232 77 (1,019) 290

1,969 68 11,159 13,196 2,091 77 10,818 12,986

3. Release from endowment funds

2016 2015



EndowmentFunds£000

Total Funds

£000



EndowmentFunds£000

Total Funds

£000

For disbursement under the Charity’s distribution rule 19,902 - (19,902) - 19,000 - (19,000) -

Permanent endowments total returnallocated to income - 215 (215) - - 63 (63) -

19,902 215 (20,117) - 19,000 63 (19,063) -

The Charity aims to release 4% of the value of the expendable endowment on a smoothed basis annually to the unrestricted fund for charitable and other expenditure, whilst maintaining the value of the endowment in line with the level of the Retail Prices Index over the long term. The Charity aims to release approximately 4% of the value of the permanent endowments annually for charitable spending in accordance with their objects by way of transfers to appropriate restricted funds.

4. Income from donations, legacies and other

2016 2015




Total Funds

£000




Total Funds

£000

Donations and legacies

Donations 278 3,586 - 3,865 279 2,278 - 2,557

Legacies 762 1,558 - 2,320 652 361 - 1,013

1,040 5,145 - 6,185 931 2,639 - 3,570

Charitable activities - 37 - 37 - 19 - 19

Other 18 6 - 24 14 17 - 31

1,058 5,188 - 6,246 945 2,675 - 3,620

Notes to the Financial Statements (continued)

1.8 Pensions contributionsThe cost of employer contributions to the NHS superannuation and other schemes is charged to the Statement of Financial Activities. The NHS Pension Scheme is an unfunded defined benefit scheme that covers NHS employers, GP practices and other bodies allowed under the direction of the Secretary of State. The Scheme’s liabilities are backed by the taxpayer and the Scheme uses contributions to pay current pensions rather than to accumulate for future payments. There are therefore no Scheme assets and liabilities that contributing employers can identify. Therefore the Scheme is accounted for as a defined contribution scheme. Employer contributions to the NHS Scheme are based on 14.3% of gross salaries.

1.9 Allocation and apportionment of costsStaff costs are considered on a person by person basis and allocated between expense headings on the basis of an estimate of time spent on activities in each area. Other overheads which are not directly attributable to one particular area of activity are apportioned in the same ratios as salary costs. Details of expenditure are provided in the notes to the accounts.

1.10 Tangible fixed assetsCapitalisation:• Leasehold improvements and fixtures, fittings and equipment which are capable of being used for more than one year and have a cost equal to or greater

than £5,000 are capitalised.• Works of art which are included in the Charity’s art collection are capitalised without reference to a minimum cost.

Valuation:• Leasehold improvements and fixtures, fittings and equipment are included at cost less depreciation where applicable.• Works of art which are included in the Charity’s art collection are included at open market value where such a market exists for a particular asset. Assets

for which there is no ready open market and for which the original cost is not available are included at a nominal value. The majority of the collection (approximately 80% by value) has been professionally valued either in 2011 or 2014, with the remainder valued by the Charity’s Trustees as at 31 March 2016.

Depreciation:• Leasehold improvements and fixtures, fittings and equipment are depreciated on a straight line basis. Leasehold improvements are depreciated over

10 years or the term of the lease if shorter. Furniture and equipment is depreciated over 5 years. Computers and other IT hardware is depreciated over 3 years. The art collection is not depreciated as the residual value of works of art is considered to be at least equal to the book value.

Impairment:• At the balance sheet date there was no indication that the recoverable amount of any functional fixed asset was below its net book value.

1.11 Fixed asset investments• Property assets are included at market valuation. Investment properties are professionally valued annually and the last valuation was at 31 December

2015. The charity also has holdings into poured property funds; these funds are included at the net acid value as at 31 March 2016.• Listed investments are included in the balance sheet at market value.• Unlisted investments are valued with reference to the most recent valuation is provided by the fund managers, all of which were at 31 March 2016.• The net gains and losses arising on revaluation and disposals throughout the year are included in the statement of financial activities.

1.12 Financial instrumentsFinancial instruments are contracts that give rise to a financial asset in one entity and a financial liability or equity intrument of another entity. Financial instruments, all of which are classified as basic financial instruments, are recognised in the accounts as follows:

• Cash and cash equivalents, which includes cash at banks and in hand and short term deposits with a maturity date of three months or less, are carried at the value of the cash so held.

• Trade and other exchange transaction debtors and creditors receivable or payable within one year of the reporting date are initially recognised at their settlement amount and subsequently measured at the cash or other consideration expected to be paid or received.

• Other debt instruments subject to a market rate of interest are initally recognised at the amount of principal advanced less material arrangement or similar fees and subsequently measured at amortised cost using the effective interest method.

• Fixed asset financial investments are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date as described in note 1.11 above.

1.13 Grant creditorsGrant creditors are amounts committed under grant awards but not yet paid. They are non-contractual in nature and therefore not financial instruments. Grant creditors that are estimated as payable in more than one year are measured at the present value of the expected future payments discounted at a market rate of interest.

1.14 ConsolidationThe consolidated financial statements include the results of the Charity and its wholly-owned subsidiary undertakings, GSTC Health Innovations Limited and GSTC Property Investments Limited. The Charity has not presented its unconsolidated income and expenditure account in accordance with the exemption under Section 408 of the Companies Act 2006.



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64

5. Total expenditure

2016 2015

Grants£000

Art£000

Othercharitableactivities

£000

Totalcharitableactivities

£000

Invest-ments£000

Fund-raising

£000Total£000

Grants£000

Art£000

Othercharitableactivities

£000

Totalcharitableactivities

£000

Invest-ments£000

Fund-raising

£000Total£000

Unrestricted funds

Direct expenditure

Property investments - - - - (241) - (241) - - - - (261) - (261)

Grants awarded 7,699 - - 7,699 - - 7,699 17,088 - - 17,088 - - 17,088

Other direct - 177 364 541 - 467 1,008 - 106 7,791 7,897 - - 7,897

7,699 177 364 8,240 (241) 467 8,466 17,088 106 7,791 24,985 (261) - 24,724

Support costs

Salary and other payroll 387 320 218 925 88 - 1,013 377 312 231 920 93 - 1,013

Other support 208 164 113 485 46 - 531 239 182 144 565 65 - 630

Depreciation 11 9 6 26 2 - 28 11 9 7 27 3 - 30

606 493 337 1,436 136 - 1,572 627 503 382 1,512 161 - 1,673

Change in fair value

Grants creditors 607 - - 607 - - 607 817 - - 817 - - 817

Total unrestricted funds 8,912 670 701 10,283 (105) 467 10,645 18,532 609 8,173 27,314 (100) - 27,214

Restricted funds

Direct expenditure

Grants awarded 1,367 - - 1,367 - - 1,367 1,804 - - 1,804 - - 1,804

Other direct - - 2,091 2,091 - - 2,091 - - 1,357 1,357 - - 1,357

1,367 - 2,091 3,458 - - 3,458 1,804 - 1,357 3,161 - - 3,161

Support costs

Salary and other payroll 52 - 116 168 - - 168 43 - 100 143 - - 143

Other support 29 - 74 103 - - 103 30 - 60 90 - - 90

Depreciation 1 - 4 5 - - 5 1 - 3 4 - - 4

82 - 194 276 - - 276 74 - 163 237 - - 237

Total restricted funds 1,449 - 2,285 3,734 - - 3,734 1,878 - 1,520 3,398 - - 3,398

Endowment funds

Direct expenditure

Financial investments - - - - 964 - 964 - - - - 3,174 - 3,174

Property investments - - - - 3,736 - 3,736 - - - - 2,844 - 2,844

- - - - 4,700 - 4,700 - - - - 6,018 - 6,018

Support costs

Salary and other payroll - - - - 359 - 359 - - - - 336 - 336

Other support - - - - 397 - 397 - - - - 180 - 180

Depreciation - - - - 11 - 11 - - - - 10 - 10

- - - - 767 - 767 - - - - 526 - 526

Interest costsPrivate placement loan - - - - 624 - 624 - - - - - - -

Total endowment funds - - - - 6,091 - 6,091 - - - - 6,544 - 6,544

10,361 670 2,986 14,017 5,986 467 20,470 20,410 609 9,693 30,712 6,444 - 37,156

Of which:

Total direct expenditure 9,066 177 2,455 11,698 4,459 467 16,624 18,892 106 9,148 28,146 5,757 - 33,903

The Charity’s fundraising activities have been undertaken since February 2011 by a King’s Health Partners consolidated unit within King’s College London through an arrangement under which the Charify did not incur any direct fundraising costs. With effect from 1 April 2015 this arrangement was changed so that the Ch arlty is now directly charged for its share of the consolidated unit’s costs.

Total expenditure includes auditor’s remuneration of £28,348 (2015: £28,107) in respect of the external audit of the statutory accounts.

Notes to the Financial Statements (continued) Notes to the Financial Statements (continued)


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66

5. Analysis of total expenditure (continued)

Direct charitable expenditure

By activity - five year profile

Total2012£000

Total2013£000

Total2014£000

Total2015£000

Total2016£000

Total2012-2016

£000

Grants

Unrestricted 26,322 40,086 25,005 17,088 7,699 116,200

Restricted 469 843 734 1,804 1,367 5,217

26,791 40,929 25,739 18,892 9,066 121,417

Art 95 126 130 106 177 634

Other charitable activities

Special purpose funds 1,222 2,427 2,065 1,357 2,091 9,162

Donations and other charitable support 1,517 826 626 417 - 3,386

Charity commissioned research/convening 569 477 187 223 155 1,611 Value of asset contribution to new Ronald McDonald House - - - 6,993 - 6,993

Other 214 156 65 158 209 802

3,522 3,886 2,943 9,148 2,455 21,954

30,408 44,941 28,812 28,146 11,698 144,005

Other charitable expenditure

By recipient - five year profile

Total2012£000

Total2013£000

Total2014£000

Total2015£000

Total2016£000

Total2012-2016

£000

Guy’s and St Thomas’ NHS Foundation Trust 1,222 3,253 2,691 1,775 2,091 11,032

Ronald McDonald House Charities - - - 6,993 - 6,993

Other charities 119 190 - - - 309

Other organisations 2,181 443 252 380 364 3,620

3,522 3,886 2,943 9,148 2,455 21,954

By strategic priority – five year profile

Total Total Total Total Total Total

2012 2013 2014 2015 2016 2012-2016

£000 £000 £000 £000 £000 £000

Cancer 351 - - - - 351

Public health - 190 35 37 - 262

Research & development - - - - - -

System transformation - 108 157 186 - 451

Other 3,171 3,588 2,751 8,925 2,455 20,890

3,522 3,886 2,943 9,148 2,455 21,954

6. Grants awarded

By recipient

RestrictedCreditors31 March

2015£000

UnrestrictedPayments

Made2016£000

RestrictedPayments

Made2016£000

Un- restrictedCreditors31 March

2016£000


2016£000

AwardedTotal2016

Number

AwardedUnrestricted

2016£000

AwardedRestricted

2016£000

AwardedTotal2016£000

Unrestricted Creditors31 March

2015£000

King’s Health Partners:Guy’s and St Thomas’ NHS Foundation Trust 39 3,517 1,216 4,733 49,191 1,978 (25,321) (476) 27,387 2,718

King’s College London 21 1,665 57 1,722 17,952 58 (5,022) (22) 14,595 93 South London and Maudsley NHSFoundation Trust

- - 3 1,443 - 1,443 3,304 - (894) - 3,853 -

King’s College Hospital NHS Foundation Trust - - - - 67 - (35) - 32 -

63 6,625 1,273 7,898 70,514 2,036 (31,272) (498) 45,867 2,811

Others:

Thames Reach - - - - 3,224 - (2,281) - 943 -

SH24 - - - - 1,547 - (861) - 686 - Breathe Arts Health Research - - - - 767 - (283) - 484 -

South London Citizens - - - - 686 - (148) - 538 -

Southwark CCG 1 585 - 585 200 - (516) - 269 -

Other 22 440 94 534 1,333 10 (958) (29) 815 75

23 1,025 94 1,119 7,757 10 (5,047) (29) 3,735 75

Individuals 41 49 - 49 15 - (34) - 30 -

127 7,699 1,367 9,066 78,286 2,046 (36,353) (527) 49,632 2,886

Fair value adjustments (1,183) - (576) -

77,103 2,046 49,056 2,886

Notes to the Financial Statements (continued)Notes to the Financial Statements (continued)


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68

6. Grants awarded (continued)

By recipient (continued)

Five year profile






AwardedTotal

2012-2016£000

King’s Health Partners:

Guy’s and St Thomas’ NHS Foundation Trust 14,854 29,895 7,964 10,747 4,733 68,193

King’s College London 10,346 6,560 6,757 3,145 1,722 28,530

South London and Maudsley NHS Foundation Trust 155 1,927 2,341 719 1,443 6,585

King’s College Hospital NHS Foundation Trust 230 49 76 150 - 505

25,585 38,431 17,138 14,761 7,898 103,813

Others:

Thames Reach - - 1,377 1,959 - 3,336

SH24 - - 3,054 - - 3,054

Breathe Arts Health Research 91 349 1,073 - - 1,513

Participle 650 - 844 - - 1,494

Design Council 50 203 1,195 - - 1,448

Southwark CCG 1 8 231 478 585 1,303

MAC-UK - 833 - - - 833

London Citizens - 50 - 714 - 764

Age Exchange - 595 - 13 - 608

Reader Organisation - - 467 - - 467

Men’s Health Forum - 258 - - - 258

Hurley Group - - 250 - - 250

Other 374 124 63 920 534 2,015

1,166 2,420 8,554 4,084 1,119 17,343

Individuals 40 78 47 47 49 261

26,791 40,929 25,739 18,892 9,066 121,417

Number Number Number Number Number Number

King’s Health Partners:

Guy’s and St Thomas’ NHS Foundation Trust 14 56 43 41 39 193

King’s College London 5 23 24 16 21 89

South London and Maudsley NHS Foundation Trust 2 5 3 3 3 16

King’s College Hospital NHS Foundation Trust 2 1 1 3 - 7

23 85 71 63 63 305

Others 14 25 23 25 23 110

Individuals 39 56 49 47 41 232

76 166 143 135 127 647

Amounts awarded are shown net of write backs and other adjustments. Grants to individuals are awarded to staff members of Guy’s and St Thomas’ NHS Foundation Trust, King’s College London and South London and the Maudsley NHS Foundation Trust.

6. Grants awarded (continued)


AwardedUnrestricted

2016£000

AwardedRestricted

2016£000

AwardedTotal2016

Number

UnrestrictedCreditors31 March

2015£000


2015£000

UnrestrictedPayments

Made2016£000

RestrictedPayments

Made2016£000

Un- restricted Creditors31 March

2016£000


2016£000

AwardedTotal2016

Number

Cancer 15 1,171 80 1,251 26,062 362 (13,601) (247) 13,632 195

Public health 9 943 - 943 2,640 - (1,230) - 2,353 -

Research & development 13 1,486 - 1,486 11,896 - (6,725) - 6,657 -

System transformation 35 5,375 - 5,375 29,617 - (10,947) - 24,045 -

Other 55 (1,276) 1,287 11 8,071 1,684 (3,850) (280) 2,945 2,691

127 7,699 1,367 9,066 78,286 2,046 (36,353) (527) 49,632 2,886

Fair value adjustments (1,183) - (576) -

77,103 2,046 49,056 2,886

Five year profile






AwardedTotal

2012-2016£000

Cancer 20 26,739 104 713 1,252 28,828

Public health 731 1,126 5,777 790 943 9,367

Research & development 10,173 629 6,906 1,507 1,486 20,701

System transformation 12,241 11,562 9,861 14,948 5,374 53,986

Other 3,626 873 3,091 934 11 8,535

26,791 40,929 25,739 18,892 9,066 121,417

Number Number Number Number Number Number

Cancer 1 7 7 8 15 38

Public health 3 8 8 7 9 35

Research & development 2 16 19 21 13 71

System transformation 25 39 27 29 35 155

Other 45 96 82 70 55 348

76 166 143 135 127 647

Amounts awarded are shown net of write backs and other adjustments. The credit for unrestricted other grants awarded in the year ended 31 March 2016 represents the write back of unspent amounts awarded in the years prior to the commencement of the current grants programme.



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7. Staff costs

Analysis of total staff costs Remuneration of senior employeesThe following number of senior employees received salaries falling within the following ranges:2016

£0002015£000

2016Number

2015NumberSalaries and wages 1,262 1,230

Social security costs 132 124

Other pension costs 146 138 £60,001 to £70,000 3 3

1,540 1,492 £70,001 to £80,000 1 2

£80,001 to £90,000 1 -

£90,001 to £100,000 1 1

Number of employees £100,001 to £110,000 - 1

2016 2015 £110,001 to £120,000 1 -

Number Number £120,001 to £130,000 - 1

£130,001 to £140,000 1 -

Average monthly number of employees in the year 23 22

No senior employee received any taxable benefits in kind in addition to their salaries as shown above.

Pension contributions for senior employeesThe following pension contributions were made for senior employees:

Total value ofcontributions

£000Number of

staff

Defined benefit schemes 85 7

Personal pension allowance 14 1

9. Fixed asset investments

2016 2015

Investments£000

Programmerelated

investments£000

Total£000

Investments£000

Programmerelated

investments£000

Total£000

Group

Unrestricted funds

Financial investments 10 1,598 1,608 10 1,318 1,328

Property investments - 21,220 21,220 - 20,030 20,030

10 22,818 22,828 10 21,348 21,358

Endowment funds

Financial investments 387,888 - 387,888 458,643 - 458,643

Property investments 297,746 - 297,746 170,294 - 170,294

685,634 - 685,634 628,937 - 628,937

Total funds

Financial investments 387,898 1,598 389,496 458,653 1,318 459,971

Property investments 297,746 21,220 318,966 170,294 20,030 190,324

685,644 22,818 708,462 628,947 21,348 650,295

Company

Unrestricted funds

Financial investments 10 1,612 1,622 10 1,373 1,383


10 22,832 22,842 10 21,403 21,413

Endowment funds

Financial investments 387,888 - 387,888 458,643 - 458,643


684,694 - 684,694 628,031 - 628,031

Total funds

Financial investments 387,898 1,612 389,510 458,653 1,373 460,026


684,704 22,832 707,536 628,041 21,403 649,444


8. Tangible fixed assets

Fixtures,Fittings

andEquipment

£000

ArtCollection

£000

LeaseholdImprove-

ments£000

Total£000

Group and Company

Cost or valuation

Balance at 31 March 2015 4,235 125 174 4,534

Acquistions 35 - - 35

Revaluation 46 - - 46

Balance at 31 March 2016 4,316 125 174 4,615

Depreciation

Balance at 31 March 2015 - 24 109 133

Charge for the year - 13 31 44

Balance at 31 March 2016 - 37 140 177

Net book value at 31 March 2016 4,316 88 34 4,438

Net book value at 31 March 2015 4,235 101 65 4,401


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9.1 Investments

Market Value

31 March 2015 £000

Disposals at Carrying

Value £000

Acquisitions at Cost

£000

Net Gains on

Revaluation £000

Market Value

31 March 2016 £000

Group

Unrestricted funds


Global equity 10 - - (0) 10

Endowment funds


Global equity 284,067 (100,850) 75,144 (8,687) 249,674

Private equity 53,595 (14,486) 9,548 4,013 52,670

Absolute return 70,960 (11,957) - (3,396) 55,607

Credit 45,051 (35,438) 13,933 1,666 25,212

Diversified portfolio 4,970 - - (245) 4,725

458,643 (162,731) 98,625 (6,649) 387,888

Property investments 170,294 (8,238) 112,000 23,690 297,746

628,937 (170,969) 210,625 17,041 685,634

628,947 (170,969 ) 210,625 17,041 685,644

Company

Unrestricted funds


Global equity 10 - - - 10

Endowment funds

Financial investments -

Global equity 284,067 (100,850) 75,144 (8,687) 249,674

Private equity 53,595 (14,486) 9,548 4,013 52,670

Absolute return 70,960 (11,957) - (3,396) 55,607

Credit 45,051 (35,438) 13,933 1,666 25,212

Diversified portfolio 4,970 - - (245) 4,725

458,643 (162,731) 98,625 (6,649) 387,888

Property investments 169,388 (8,238) 112,000 23,656 296,806

628,031 (170,969) 210,625 17,007 684,694

628,041 (170,969 ) 210,625 17,007 684,704


9.1 Investments (continued)

Analysis of market value and historic cost

Listed UK

£000

Listed Overseas

£000

Unlisted UK

£000

Unlisted Overseas

£000

2016 Total £000

2015 Total £000

Group

Global equity 89,682 160,002 - - 249,684 284,077

Private equity - - 813 51,857 52,670 53,595

Absolute return - 55,607 - - 55,607 70,960

Credit 1,846 9,122 - 14,244 25,212 45,051

Diversified portfolio - 4,725 - - 4,725 4,970

Property - - 296,038 1,708 297,746 170,294

Market value at 31 March 2016 91,528 229,456 296,851 67,689 685,644


Historic cost at 31 March 2016 90,241 183,149 132,844 47,166 453,400


Company

Global equity 89,682 160,002 - - 249,684 284,077

Private equity - - 813 51,857 52,670 53,595

Absolute return - 55,607 - - 55,607 70,960

Credit 1,846 9,122 - 14,244 25,212 45,051

Diversified portfolio - 4,725 - - 4,725 4,970

Property - - 295,098 1,708 296,806 169,388





9.2. Programme related investments

Market Value

31 March 2015 £000

Disposals at Carrying

Value £000

Acquisitions at Cost

£000

Written off/back

£000

Net Gains on

Revaluation £000

Market Value

31 March 2016 £000

Group

Unrestricted funds

Property 20,030 (1,550) - - 2,740 21,220

Health innovations investments 1,318 (4) 292 (128) 120 1,598

21,348 (1,554) 292 (128) 2,860 22,818

Historic cost at 31 March 2016 6,306


Company

Unrestricted funds

Property 20,030 (1,550) - - 2,740 21,220

Health innovations investments 1,373 - 217 - 22 1,612

21,403 (1,550) 217 - 2,762 22,832



All programme related investments were unlisted and held in the United Kingdom.Programme related investments are investments made directly in pursuit of the Charity’s charitable purposes.


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9.3 Net gains on revaluation and disposal of investments

2016 2015

Investments £000

Programmerelated

investments £000

Total £000

Investments £000

Programmerelated

investments £000

Total £000

Group

Unrestricted funds

Unrealised gains/(losses)

Financial investments - 120 120 (1) 200 199


- 2,860 2,860 (1) 2,435 2,434

Realised gains

Property investments - 725 725 - - -

- 725 725 - - -

Total gains/(losses)

Financial investments - 120 120 (1) 200 199


- 3,585 3,585 (1) 2,435 2,434

Endowment funds

Unrealised gains/(losses)

Financial investments (6,649) - (6,649) 54,434 - 54,434


17,041 - 17,041 76,864 - 76,864

Realised gains/(losses)

Financial investments (6,056) (6,056) 11,753 11,753

Property investments 165 - 165 10,525 - 10,525 (5,891) - (5,891) 22,278 - 22,278

Other gains/(losses) 44 - 44 (66 ) - (66)


Financial investments (12,705) - (12,705) 66,187 - 66,187


Other 44 - 44 (66) - (66)

11,194 - 11,194 99,076) - 99,076

Total funds


Financial investments (12,705) 120 (12,585) 66,186 200 66,386


Other 44 - 44 (66) - (66)

11,194 3,585 14,779 99,075) 2,435 101,510


9.4. Subsidiary undertakings

The Charity owns 100% of the following subsidiary undertakings.

• GSTC Property Investments Limited (registered in England and Wales number 7369879). The principal activity of this company is investment in land and buildings with long-term development potential. The company made a loss of £33,671 for the year ended 31 March 2016 and its net assets at that date amounted to £2,312,304. Its accounts have been consolidated into the Group accounts. The value of the Charity’s investment in this subsidiary undertaking has been estimated at the net asset value and is included in direct property investments in the Charity’s accounts.

• GSTC Health Innovations Limited (registered in England and Wales number 6852696). The principal activities of this company are investment in healthcare technology innovations arising out of King’s Health Partners (and the wider entrepreneurial community in Lambeth and Southwark) and commercialisation of these innovations. The company made a profit of £17,010 for the year ended 31 March 2016 and its net assets at that date amounted to £1,326,700. Its accounts have been consolidated into the Group accounts. The value of the Charity’s investment in this subsidiary undertaking has been estimated at £1,347,434.

• GSTC Health Investments Limited (registered in England and Wales number 6861110). This company is dormant and did not make a profit or loss for the year ended 31 March 2016. Its net assets at that date were £1. The value of the Charity’s investment in this subsidiary undertaking has been estimated at £1.

Summary accounts for the active subsidiaries are shown below:

GSTC Property Investments Ltd

Summary Income and Expenditure account for the year ended 31 March 2016

Summary Balance Sheetas at 31 March 2016

£ £

Gross income 12,801 Tangible fixed assets 3,252,150

Expenditure (46,472) Net current assets 4,280

Net loss (33,671) Total assets less net current liabilities 3,256,430

Creditors due after one year (944,126)

Net assets and shareholder’s funds 2,312,304

GSTC Health Innovations Ltd

Summary Income and Expenditure accountfor the year ended 31 March 2016

Summary Balance Sheet

as at 31 March 2016

£ £

Gross income 5,994 Tangible fixed assets 1,332,132

Expenditure (86,484) Net current liabilities (5,432)

Net expenditure (80,490) Total assets less net current liabilities 1,326,700

Investment gains 97,500

Net assets and shareholder’s funds 1,326,700

Net profit 17,010


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10. Debtors

2016 2015




Total Funds

£000




Total Funds

£000

Group

Debtors falling due within one year 3,111 347 1,101 4,559 400 489 1,934 2,823

Debtors falling due after one year 446 - - 446 446 - - 446

3,557 347 1,101 5,005 846 489 1,934 3,269

Company

Debtors falling due within one year 3,111 347 1,097 4,555 412 489 1,935 2,836

Debtors falling due after one year 446 - 944 1,390 446 - 900 1,346

3,557 347 2,041 5,945 858 489 2,835 4,182

10.1. Debtors falling due within one year

2016 2015




Total Funds

£000




Total Funds

£000

Group

Prepayments 145 - 169 314 112 - 126 238

Accrued income 779 277 425 1,481 49 62 200 311

Other debtors 2,187 70 507 2,764 239 427 1,608 2,274

3,111 347 1,101 4,599 400 489 1,934 2,823

Company

Prepayments 145 - 169 314 112 - 126 238

Accrued income 778 277 436 1,491 48 62 210 320 Amount due from subsidiary undertakings - - 5 5 - - 14 14

Other debtors 2,188 70 587 2,745 252 427 1,585 2,264

3,111 347 1,097 4,555 412 489 1,935 2,836

10.2. Debtors falling due after one year

2016 2015




Total Funds

£000




Total Funds

£000

Group

Charitable loans 446 - - 446 446 - - 446

446 - - 446 446 - - 446

Company

Loan to subsidiary undertaking - - 944 944 - - 900 900

Charitable loans 446 - - 446 446 - - 446

446 - 944 1,390 446 - 900 1,346

The loan to a subsidiary undertaking is a loan to GSTC Property Investments Ltd. It is drawn down under a facility of £9,000,000, is secured by a fixed and floating charge over the assets of that company, bears interest at a rate of 4.5% per annum, and is repayable by 9 December 2018.

Charitable loans comprise long term loans to Guy’s and St Thomas’ NHS Foundation Trust and South London and Maudsley NHS Foundation Trust. The loans are unsecured, non-interest bearing and have no fixed repayment date.

12. Cash and short term deposits

2016 2015




Total Funds

£000




Total Funds

£000

Group

Short term deposits

within one month - 3,015 - 3,015 3,000 - - 3,000

between one month and three months - - 5,000 5,000 1,000 2,000 5,003 8,003

between three months and one year - - - - 3,750 2,500 - 6,250

- 3,015 5,000 8,015 7,750 4,500 5,003 17,253

Cash at bank and in hand 2,133 11,850 10,815 24,798 11,746 7,596 10,090 29,432

2,133 14,865 15,815 32,813 19,496 12,096 15,093 46,685

Company

Short term deposits

within one month 3,015 - 3,015 3,000 - - 3,000

between one month and three months - 5,000 5,000 1,000 2,000 5,003 8,003

between three months and one year - - - 3,750 2,500 - 6,250

3,015 5,000 8,015 7,750 4,500 5,003 17,253

Cash at bank and in hand 2,073 11,850 10,808 24,731 11,606 7,596 10,089 29,291

2,073 14,865 15,808 32,746 19,356 12,096 15,092 46,544

11. Inter-fund loan

Within the unrestricted fund, the Charity’s policy is to closely match grant liabilites with cash or cash equivalents. In order to enable the unrestricted fund to obtain a better return on this cash than would be available in the money market without incurring additional market risk, on 9 April 2013 the unrestricted fund lent £50,000,000 to the endowment fund. The unrestricted fund receives interest on this loan at a rate of 12 month sterling LIBOR + 1.25% fixed annually on the anniversary of the commencement of the loan which is paid by transfers from the endowment fund to the unrestricted fund. The loan is repayable at the option of the unrestricted fund as follows: up to and including 8 April 2016 a maximum of £30,000,000; from 9 April 2016 up to and including 8 April 2017 a maximum of £10,000,000 plus any amount not repaid in the previous period; and from 9 April 2017 up to and including 9 April 2018 any outstanding principal amount. The final repayment date may be extended at the option of the unrestricted fund with the approval of the Charity’s Investment Committee up to and including 8 April 2023.


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14. Private placement loan

The private placement loan is a £60,000,000 loan advanced to the Charity by way of a senior loan note issued on 21 December 2015. The loan bears interest at a fixed rate of 3.72% per annum and is repayable on 21 December 2045 unless previously repaid.

15. Unrestricted funds

Balance1 April

2015£000

Income£000

Expenditure£000

Transfers£000

Gains andLosses

£000

Balance31 March

2016£000

Group

Programme-related investment funds

Charitable property fund 20,030 - - (2,275) 3,465 21,220

Health innovations investments fund 1,318 - - 160 120 1,598

21,348 - - (2,115 ) 3,365 22,818

Art collection fund 4,235 35 - - 46 4,316

Distribution account (10,759) 22,894 (10,645) (1,922) - 3,412

14,824 22,929 (10,645) (193) 3,631 30,546

Company

Programme-related investment funds

Charitable property fund 20,030 - - (2,275) 3,465 21,220

Health innovations investments fund 1,373 - - 217 22 1,612

21,403 - - (2,058 ) 3,487 22,832

Art collection fund 4,235 35 - - 46 4,316

Distribution account (10,766) 22,888 (10,558) (1,865) - 3,419

14,862 22,923 (10,558) (193) 3,533 30,567

16. Restricted funds

Balance1 April

2015£000

Income£000

Expenditure£000

Transfers£000

Gains andLosses

£000

Balance31 March

2016£000Group and Company

Material funds

Evelina Children’s Hospital Appeal 1,364 1,908 (1,175) - - 2,097

Integrated Cancer Centre Fund 321 988 (563) - - 746

The Lane Fox Respiratory Unit Patients Association Appeal Fund 454 38 (7) - - 485

Masterstroke - Polycythaemia 33 481 (74) - - 440

Guy’s and St Thomas’ Samaritan Fund 272 142 (28) - - 386

Guy’s and St Thomas’ Hospitals Nurses League Benevolent Fund 361 - (11) - - 350

Children’s Heart Fund 291 55 (41) - - 305

Neonatal Unit 183 83 (27) - - 239

Teenage & Young Adult Haematology/Oncology Unit 311 - (84) - - 227

Cardiac Intervention Research Fund 213 63 (76) - - 200

Janet James Fund 177 - - - - 177

St John’s Hospital 205 - (37) - - 168

Pharmacy Department Fund 174 2 (16) - - 160

The Dreadnought Hospital Fund 157 1 (2) - - 156

MPN Voice Fund 130 100 (81) - - 149

Others (190) 4,752 1,610 (1,512) 193 - 5,043

9,398 5,471 (3,734) 193 - 11,328

A full list of all financial transactions on restricted funds is available from the Charity.

Details of material funds at 31 March 2016: Description of the nature and purpose of each fundThe Evelina Children's Hospital Appeal For the benefit of the health and well being of children and families accessing

children's services at the Guy's and St Thomas' NHS Foundation Trust.

The Integrated Cancer Centre Fund For the relief of sickness amongst people with cancer.

The Lane Fox Respiratory Unit Patients Association Appeal Fund For the relief of people receiving care at the Lane Fox Respiratory Unit.

Masterstroke - Polycythaemia To support polycythaemia research.

Guy's and St Thomas' Samaritan Fund For the relief of patients and former patients of the hospitals operated by the Guy's and St Thomas' NHS Foundation Trust, preference being given to those in need of financial assistance.

Guy's and St Thomas' Hospitals Nurses League Benevolent Fund For relief of nurses, midwives or nursing assistants or former nurses of Guy's and St Thomas' NHS Foundation Trust in need, hardship or distress.

Children's Heart Fund To support research and treatment for children with heart problems.

Neonatal Unit To benefit the Neonatal Unit.

Teenage & Young Adult Haematology/ Oncology Unit To support the Teenage and Young Adult Haematology/Oncology Unit.

Cardiac Intervention Research Fund To support research into heart disease.

Janet James Fund To support research into rheumatism, rehabilitation or diabetes.

St John's Hospital To benefit the St. John's Institute of Dermatology.

Pharmacy Department Fund To benefit the Pharmacy Department.

The Dreadnought Hospital Fund For purposes relating to the relief of sickness among patients or former patients of the Dreadnought Unit and development of staff dealing with such patients or former patients.

MPN Voice Fund To provide medical information and emotional support to MPN patients and their families; educate the wider community about myeloproliferative disease; support MPN research, education and patients in the NHS.

13. Other creditors falling due within one year

2016 2015




Total Funds

£000




Total Funds

£000

Group

Purchase creditors 777 - - 777 1,322 - - 1,322

Accruals 62 - 1,093 1,155 477 23 1,529 2,029

Deferred investment property income 137 - 2,069 2,206 157 - 1,192 1,349

Tax and social security 58 - - 58 60 - - 60

Other creditors 2,320 740 - 3,060 180 636 - 816

3,354 740 3,162 7,256 2,196 659 2,721 5,576

Company

Purchase creditors 777 - - 777 1,322 - - 1,322

Accruals 62 - 1,093 1,155 477 23 1,529 2,029

Deferred investment property income 137 - 2,062 2,199 157 - 1,186 1,343

Amount due to subsidiary undertakings 1 - - 1 - - - -

Tax and social security 58 - - 58 60 - - 60

Other creditors 2,252 740 - 2992 69 636 - 705

3,287 740 3,155 7,182 2,085 659 2,715 5,459

Deferred investment property income represents rent received in advance of the period to which it relates and generally arises where, under the terms of a property lease, rent is due to be paid in advance at the commencement of a quarterly or half-yearly rental period. For the years ended 31 March 2015 and 2016, no income was deferred for more than six months and all amounts included in deferred income at the end of each year were released to the statement of financial activities during the subsequent year.


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17. Endowment funds

Balance1 April

2015£000

Income£000

Expenditure£000

Transfers£000

Gains andLosses

£000

Balance31 March

2016£000

Group

Permanent endowments

Guy’s and St Thomas’ Samaritan Fund 1,652 - (65) - (76) 1,511

The Leak Trust 1,288 - (52) - (59) 1,177

The Guy’s and St Thomas’ Patients Amenities Fund 1,197 - (48) - (54) 1,095

S J Lam Legacy Fund 750 - (30) - (34) 686

Dr Reginald Curle Trust 490 - (20) - (22) 448

5,377 - (215) - (245) 4,917

Expendable endowment

General fund 587,866 (8,958) (5,876) - 11,439 584,471

593,243 (8,958) (6,091) - 11,194 589,388

Company

Permanent endowments

Guy’s and St Thomas’ Samaritan Fund 1,652 - (65) - (76) 1,511

The Leak Trust 1,288 - (52) - (59) 1,177

The Guy’s and St Thomas’ Patients Amenities Fund 1,197 - (48) - (54) 1,095

S J Lam Legacy Fund 750 - (30 ) - (34) 686

Dr Reginald Curle Trust 490 - (20 ) - (22) 448

5,377 - (215) - (245) 4,917

Expendable endowment

General fund 587,866 (8,930) (5,870) - 11,405 584,471

593,243 (8,930) (6,085) - 11,160 589,388

Details of funds at 31 March 2016:

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

Guy’s and St Thomas’ Samaritan Fund For the relief of patients and former patients of the hospitals operated by the Guy’s and St Thomas’ NHS Foundation Trust, preference being given to those in need of financial assistance.

The Leak Trust For medical research.

Guy’s and St Thomas’ Patients Amenities Fund For the benefit of in or out patients who are or have been treated at hospitals operated by the Guy’s and St Thomas’ NHS Foundation Trust.

S J Lam Legacy Fund To provide bursaries for medical students.

Dr Reginald Curle Trust For providing extra comforts for the patients at hospitals operated by the Guy’s and St Thomas’ NHS Foundation Trust; and for the provision of accommodation for the use of relations.

General Fund No restrictions on expenditure of income. Capital may be expended at Trustees’ discretion.

17. Endowment funds (continued)

Permanent endowments - statement of total return

Group and Company

Trust forinvestment

£000

Unappliedtotal return

£000

Totalendow-

ments£000

At 1 April 2015

Gift components of the permanent endowments 2,329 - 2,329

Unapplied total return - 3,048 3,048

2,329 3,048 5,377

Movements during the period

Investment return

Realised and unrealised losses - (245) (245)

- (245) (245)

Allocated to income during the period - (215) (215)

Net movements during the period - (460) (460)

At 31 March 2016

Gift components of the permanent endowments 2,329 - 2,329

Unapplied total return - 2,588 2,588

Balance at 31 March 2016 2,329 2,588 4,917

In October 2014 the Trustees resolved (i) to adopt a total return approach to investment to the five permanent endowment funds shown above pursuant to the power contained in the Charities Act 2011, and (ii) that the provisions in the Charities (Total Return) Regulations 2013 would regulate the Trustees’ use of the total return approach on an ongoing basis. The Charity received advice from its legal advisors Withers LLP with regard to the use of the power. Consequently, effective from 1 January 2015, these funds are invested to maximise total return and the Charity aims to release 4% of their value annually for charitable spending in accordance with their objects by way of transfers of portions of the unapplied total return to income of appropriate restricted funds. Until the power to make transfers is exercised, the unapplied total return remains invested as part of the relevant permanent endowment.

The following table sets out the dates that the values of the initial endowments (or the valuations at the nearest dates for which the information is available) were established. The initial values of the unapplied total return (in practice, the capital profits arising from the investment of the endowments) were established as at 31 December 2015.

Guy’s and St Thomas’ Samaritan Fund 31 March 2004The Leak Trust 31 March 1998 The Guy’s and St Thomas’ Patients Amenities Fund 31 March 2001 S J Lam Legacy Fund 31 March 2013 Dr Reginald Curle Trust 31 March 1998

The following note shows the opening unapplied total return and fund transfer in the year.


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18. Revaluation reserves

2016 2015





Total Funds

£000



Total Funds

£000

Group

Balance at 31 March 2015

Financial investments 285 - 99,888 100,173 85 - 69,621 69,706

Property investments 14,926 - 143,107 158,033 12,691 - 118,954 131,645

Art collection (404) - - (404) (405) - - (405)

14,807 - 242,995 257,802 12,371 - 188,575 200,946

Revaluation gain/(loss) for the year

Financial investments (see note 9) 120 - (6,649) (6,529) 200 - 54,434 54,634

Property investments (see note 9) 2,740 - 23,690 26,430 2,235 - 22,430 24,665

Art collection (see note 8) 46 - - 46 1 - - 1

2,906 - 17,041 19,947 2,436 - 76,864 79,300

Disposals during the year

Financial investments - - (23,915) (23,915) - - (24,165) (24,165)

Property investments (1,549) - (3,887) (5,436) - - 1,721 1,721 (50) - (27,802) (29,351) - - (22,444) (22,444)




Art collection (358) - - (358) (404) - - (404)

16,164 - 232,234 248,398 14,807 - 242,995 257,802

Company




Art collection (404) - - (404) (405) - - (405)

14,644 - 242,118 256,762 12,371 - 187,664 200,035

Revaluation gain/(loss) for the year

Financial investments (see note 9) 22 - (6,649) (6,627) 37 - 54,434 54,471

Property investments (see note 9) 2,740 - 23,656 26,396 2,235 - 22,464 24,699

Art collection (see note 8) 46 - - 46 1 - - 1

2,880 - 17,007 19,815 2,273 - 76,898 79,171

Disposals during the year

Financial investments - - (23,914) (23,914) - - (24,165) (24,165)

Property investments (1,550) - (3,887) (5,437) - - 1,721 1,721 (1,550) - (27,801) (29,351) - - (22,444) (22,444)




Art collection (358) - - (358) (404) - - (404)

15,902 - 231,324 247,226 14,644 - 242,118 256,762

19. Gross transfers between funds

2016 2015




Total Funds

£000




Total Funds

£000

Group and Company

Restricted funds net support costs (201) 201 - - (159) 159 - -

Permanent endowments released - - - - 18 498 (516) -

Other transfers 8 (8) - - 248 (248) - -

(193) 193 - - 107 409 (516) -

The transfer from unrestricted to restricted funds of £201,000 (2015: £159,000) represents the balance of the support costs incurred by the Charity in administering the restricted funds after taking account of the interest income earned on restricted fund cash balances.Other transfers from restricted to unrestricted funds of £8,000 (2015: £248,000) represent the transfer of restricted donations for which no appropriate special purpose fund currently exists to support unrestricted grants which have objects that are most closely aligned to the original restriction.

20. Financial instruments

The financial statements include the following financial instruments:

2016 2015




Total Funds

£000




Total Funds

£000

Group

Financial assets measured at fair value through statement of financial activities

Fixed asset financial investments 1,608 - 387,888 389,496 1,328 - 458,643 459,971

Financial assets that are debt instruments measured at amortised cost

Sales and other debtors 2,169 - 507 2,676 194 - 1,608 1,802

Accrued income 128 2 425 555 49 12 200 261

2,297 2 932 3,231 243 12 1,808 2,063

Financial liabilities measured at amortised cost

Purchase and other creditors 2,899 - - 2,899 1,503 - - - 1,503

Accruals 62 - 1,093 1,155 477 23 1,529 2,029

Private placement loan - - 60,000 60,000 - - - -

2,961 - 61,093 64,054 1,980 23 1,529 3,532

Company

Financial assets measured at fair value through statement of financial activities

Fixed asset financial investments 1,622 - 387,888 389,510 1,383 - 458,643 460,026

Financial assets that are debt instruments measured at amortised cost

Sales and other debtors 2,169 - 488 2,657 193 - 1,600 1,793

Accrued income 125 2 435 562 48 12 209 269

Loans due from subsidiary undertakings - - 949 949 - - 900 900

2,294 2 1,872 4,168 241 12 2,709 2,962

Financial liabilities measured at amortised cost

Purchase and other creditors 2,830 - - 2,830 1,392 - - 1,392

Accruals 62 - 1,093 1,155 477 23 1,529 2,029

Private placement loan - - 60,000 60,000 - - - -

2,892 - 61,093 63,985 1,869 23 1,529 3,421


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21. Trustee and connected person transactions

Trustee expenses reimbursed Trustees’ indemnity insurance

2016 2015 2016 2015

£ £ £000 £000

Travel and subsistence 3,873 2,312 Trustees’ and officers’ liability 16 13

Trustees’ remunerationNo person received remuneration as a Trustee of Guy’s and St Thomas’ Charity in either the current year or the previous year.

Transactions with trustees or connected personsDuring the year ended 31 March 2016 none of the Trustees, key members of the Charity’s management or parties related to them has undertaken any material transactions with Guy’s and St Thomas’ Charity.

Number of trustees

2016 2015

Number Number

Total number of Trustees 7 7

22. Commitments

There was no capital expenditure contracted or provided for at 31 March 2016 (2015 £nil). The Group has no commitments for future lease payments (2015 £nil).

23. Transition to FRS 102

This is the first year that the Charity has prepared its financial statements under FRS 102. The last financial statements prepared under previous UK GAAP were for the year ended 31 March 2015 and the date of transition to FRS 102 was 1 April 2014. A reconciliation of amounts presented under previous UK GAAP and FRS 102 is set out below for the Group’s net income for the financial year ended 31 March 2015 and for its total funds at 1 April 2014 and 31 March 2015 together with an explanation of changes in accounting policies on transition.

Reconcilliation of net lncome/(expenditure) for the year ended 31 March 2015




Total Funds

£000

Net income/(expenditure) under previous UK GAAP (1,927) (583) 84,287 81,777

Fair value adjustment - grant creditors (817) - - (817)

Net income/(expenditure) restated under FRS 102 (2,744) (583) 84,287 80,960

Reconcilliation of total funds at 31 March 2015




Total Funds

£000

Total funds under previous UK GAAP 13,641 9,398 593,243 616,282

Fair value adjustment - grant creditors 1,183 - - 1,183

Total funds restated under FRS 102 14,824 9,398 593,243 617,465

Reconcilliation of total funds at 31 March 2014




Total Funds

£000

Total funds under previous UK GAAP 15,460 9 ,572 509,472 534,504

Fair value adjustment - grant creditor 2,000 - - 2,000

Total funds restated under FRS 102 17,460 9,572 509,472 536,504

Fair value adjustment - grant creditorsGrant creditors are non-contractual amounts committed under grant awards that are not yet paid. For commitments resulting from non-exchange transactions where settlement is delayed and the effect of the time value of money is material, the transaction is recognised at the present value of the likely settlement amount. This has resulted in the Charity measuring grant creditors that are estimated as payable in more than one year at the present value of the expected future payments discounted at a market rate of interest. Previously grant creditors were measured at the undiscounted value of the likely settlement amount. In the year to 31 March 2015 an additional charge of £817,000, being the change in the value of the discount from 1 April 2014, was recognised in the Statement of Financial Activities and the liability for grant creditors due after one year at 31 March 2015 was reduced by £1,183,000.

Other adjustments arising on transition to FRS 1021n order to comply with FRS 102 and the new Charity SORP, governance costs are no longer presented as a separate category of expenditure in the Statement of Financial Activrties as they are now regarded as part of support costs which are allocated to the cost of activities undertaken. This change has had no effect on the Group’s net income or its total funds.


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Registered OfficeGuy’s and St Thomas’ CharityFrancis House9 King’s Head YardLondon SE1 1NA

Registered Charity Number1160316

Company limited by guarantee registered in England and Wales9341980

This report was published in September 2016

www.gsttcharity.org.uk@GSTTCharity

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