BLOG - UNBOUNCE - EXAMPLE PAGE - ANNUAL REPORT - KCH - Flipbook - Page 36
2021/22 Financial Review
Reserves
The Board formally reviews its reserves policy annually,
and was unchaged compared with prior year, at 31
March 2022. This review is intended to ensure that the
reserves arrangements continue to be appropriate in
the constantly changing strategic and financial context
and support the Charity’s strategy.
The Trustees consider that the level of general funds
are sufficient to meet these purposes but intend to
keep this under review due to continuing uncertainty
regarding the longer-term impact of the external
environment on fundraising.
The objectives of our reserves policy are to:
1 Safeguard the long-term financial sustainability
of the Charity by maintaining a minimum level of
general reserves.
2 Set aside and then release resources to fund our
strategic grants programme.
3 Support the investment required in the Charity’s
growth strategy.
4 Comply with accounting principles and the
requirements of the Statement of Recommended
Practice applicable to charities (FRS 102
Charities SORP).
5 Comply with donor requirements where those
are specified.
At 31 March 2022, the value of restricted funds was
£3.5m (2021: £3.5m) – the name and value of each fund
above £100,000 is provided in Note 2.1. For these funds,
we will comply with the specific requirements of donors
and spend their donations on the restricted purpose
specified. Donations are held in restricted reserves
until suitable spending plans have been identified and
approved.
The Charity’s unrestricted funds are held in both
designated and general funds.
At 31 March 2022, £9.7m (2021: £8.1m) was held
in designated funds set aside for named clinical
specialties or hospital wards, where the donor has
indicated they wish the funds to be used for that
purpose. The Trustees expect these funds to be spent
within a reasonable timeframe – there is a process
in place for closing funds where there is no further
36
S U P P O R T K I N G S .O R G .U K
planned activity and transferring any remaining
balance back to general funds. Spending takes place
with advice from ‘Designated Fund Advisors’, subject to
compliance with the Charity’s policy and procedures.
Funds are available for spending in full, with no
reserves figure set. Designated Fund Advisors are
encouraged to fundraise to replenish funds for future
developments.
There is a further £6.9m (2021: £6.9m) designated as
strategic grant funds. We wish to develop our capability
to support the Foundation Trust in delivering some
major strategic and transformation projects. These
projects typically have a long lead time and require
time and resources before they can be progressed for
approval and fundraising. The value of the reserve is
based on the Charity’s medium-term grant-making
plan, with the expectation that further funds would
be raised from fundraising appeals to fund a series of
strategic projects. The value of this fund reflects the
amount required over the next three years to support
the Charity’s strategy and allow regular and sustained
investment in growing the Charity and increasing its
ability to support its beneficiaries.
A further fund to support the pump priming of pipeline
capital projects was established in 2018/19 and an
initial sum of £1m was transferred. Capital projects
by their nature require a large amount of funding to
be raised over a relatively short period of time. The
Trustees believe that in order to support King’s in
progressing projects currently at the planning stage,
funds should be set aside for this purpose. The fund
has not been drawn down during the year although a
number of capital projects are now being evaluated.
At 31 March 2022, £6.0m (2021: £5.8m) was held in
general funds, which are used by the Charity to ensure
the long-term financial sustainability of the Charity.
This includes both retaining reserves to mitigate
any adverse financial impact of strategic risks and
to underpin the delivery of the Charity’s three year
strategy which includes investment in growing the
numbers of our supporters, and maintaining the
planned level of our grant making . In both 2020/21
and 2021/22 the value of the fund increased in value
due to the gains in the financial markets of £5.2m and
£1.4m respectively but these funds remain at risk from
volatility of world markets.
