Annual report and financial accounts 2016 - RCN Foundation

Annual Report 2016

The RCN Foundation Annual Report and Financial Statements 1 January to 31 December 2016

Contents Introduction from the Chair

2

Introduction from the Head of Foundation

3

Report of the Trustees

4-18

Successes in 2016

5

Strategic priorities

7

Objectives for 2017

7

Financial review

8

Principal risks and uncertainties

10

Board of Trustees

11

Reference and administrative details

11

Structure, governance and management

12

Thank you to our supporters

14

Statement of Trustees’ responsibilities

16

Independent auditor’s report Financial statements

Registered Charity: 1134606 Scottish Registered Charity: SC043663 Registered Company: 07026001

Photograph: RCN Foundation West Highland Way 2016 team

17 20-32

Introduction from the Chair Robert Sowney It has been another busy year for the Foundation on so many different fronts. I have, once again, been amazed at the support and enthusiasm shown for our work by so many different people around the country.

This year, 70% of all our expenditure was on our charitable activities We were delighted to welcome Deepa Korea as the new Head of the RCN Foundation in March 2016. Deepa brings considerable experience from the charity sector and this has already added real value to our work. She will be working closely with the Board of Trustees to ensure that our projects and programmes achieve the maximum impact for the benefit of nurses, midwives and health care assistants. In line with this, I am pleased to report that this year, 70% of all our expenditure was on our charitable activies. As Chair of the Board of Trustees, I have spent much of this year focused on strengthening our governance and working relationships. This has included rationalising our Committee structure to make it more efficient and effective, and beginning to streamline our grantmaking processes in preparation for the new Customer Relationship Management (CRM) system that we will be introducing in 2017. This programme of change and improvement is set to continue in 2017. This year has also seen a focus on our role within the RCN Group alongside the RCN and RCNi. During the year I have been working closely with the Chairs of both of these organisations, discussing with them how we leverage greater benefit as a charity from being part of the Group. A particular highlight for me in 2016 was the awards ceremony at Congress in Glasgow, when we marked the 2

incredible achievements of some of our bursary recipients. I was very pleased to be able to feature their fantastic work and the impact it has made. I hope that reading about our successes in 2016 will give you a flavour of just some of the many initiatives we have been involved in over the past year and our ambitions for the future. Our work would not have been possible without the support of so many organisations and individuals. Thank you to my fellow trustees, Foundation staff, RCN staff and members of RCN Council, and the many others who have shown such tremendous support for the Foundation during the year. I look forward to next year with the confidence that the Foundation will continue to increase its impact for the benefit of the nursing profession, their patients and the health of the wider public.

Robert Sowney Chair of the RCN Foundation Board of Trustees

T HE RCN FOUNDAT ION

Introduction from the Head of Foundation Deepa Korea In my first year as Head of the RCN Foundation, I have been in the privileged position of seeing first-hand the difference the charity is making to the lives of nurses, midwives and health care assistants across the four countries of the UK. Since the Foundation was established in 2010, its work has had a positive impact on many hundreds of individuals. Whether they needed help to get their lives back on track because of illness or personal difficulty, or to improve their education and career prospects, the Foundation has supported them every step of the way. A few of their stories are featured in the pages of this review but there are many more. I have been inspired and motivated by what our grantees have achieved with our help and how, in many cases, they have gone on to improve care for their patients.

The RCN Foundation is uniquely positioned to make a positive and longterm contribution to the nursing and wider health care agendas in the UK In 2017, we will be setting out to gain a better understanding of the impact we have on the lives of the individuals we support, and our influence on the key health challenges facing the nation. This will inform our future strategy and enable us to take forward our ambitions to support nursing and improve care.

ANNUAL REP ORT AND F INANCIAL STAT EMENT S

In seeking to achieve our plans, we will be building partnerships with a wide range of individuals and organisations who share our vision, in the firm belief that together we are greater than the sum of our parts. The RCN Foundation is uniquely positioned to make a positive and long-term contribution to the nursing and wider health care agendas in the UK. If you would like to work with us to achieve our aspirations, please do get in touch. I look forward to an important year in the growth of the Foundation.

Deepa Korea Head of Foundation

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Report of the Trustees for the year ended 31 December 2016 (incorporating the Director’s Report) The Board of Trustees of the RCN Foundation presents its annual report and financial statements for the year ended 31 December 2016 in accordance with Generally Accepted Accounting Practice in the United Kingdom (UK GAAP), the Statement of Recommended Practice: Accounting and Reporting by Charities (Charities SORP), the Charities Act 2011 and the Companies Act 2006; the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006 (as amended). This document is a summary of our activities and finances at the end of our sixth year as a registered charity. It is available in hard copy by written request and can be downloaded from the Foundation’s website (www.rcnfoundation.org.uk), where there are further details about the Foundation’s work.

2016 Objectives Our objectives for 2016 were to: • • • • • •

refresh our strategy and review our governance arrangements; develop and implement our marketing and fundraising strategy and introduce our new customer relationship management system and website; embed our new welfare support service in partnership with the RCN; introduce a single grants programme to increase our impact and improve the customer service experience; grow our supporter network and our partnerships; and establish our Scotland Committee and setting up country committees in Wales and Northern Ireland.

John was referred to the LampLight Support Service by a member of the Royal College of Nursing’s Legal team, who were concerned about his welfare. When the service contacted John in the run-up to the Christmas period, he was homeless and sleeping in a hostel. After an initial discussion, a LampLight adviser identified that John could be supported with the cost of temporary accommodation whilst he explored more permanent options for housing. But the situation deteriorated during the assessment process, with John contacting the service to tell them that he had been evicted and was sleeping rough. The same day, an adviser spoke with a housing charity and

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was given details of alternative accommodation. The adviser contacted the owner of a local guest house and explained the situation, and she was happy to offer John accommodation with a commitment from the service that it would meet the costs. Within the space of a few hours, the LampLight Support Service had secured accommodation for John that would ensure he had somewhere safe, dry and warm to sleep over the Christmas and New Year period. The service continued to work with a local housing charity and John to find a permanent solution to his housing problems.


Successes in 2016 Supporting nurses facing hardship In 2016, the Foundation changed the way in which it supports nurses, midwives and health care assistants (HCAs) who are facing hardship. In partnership with the Royal College of Nursing, we established the LampLight Support Service. This service seeks to provide a holistic model of support to those in greatest need through the provision of FCA-regulated debt advice, income maximisation guidance and financial grants. In total, 1,111 nurses, midwives or HCAs were helped in 2016. On average, a person who received income maximisation advice from the service was £2,775 better off per year even before being awarded a hardship grant. Enhancing career development opportunities for nurses In 2016, the Foundation provided education grants and bursaries totalling around £216,000 to 135 individuals. Over the year, we experienced a significant increase in applications for funds. For example, the second round of the Professional Bursary Scheme in the autumn saw a 100% increase in applications compared to the first round in the spring. As budgets continue to be cut, we expect this trend to continue and, as a result, next year the Foundation will review how it can meet this growing demand effectively in the years ahead. Partnership working continued to play an important role with the Foundation’s education bursaries in 2016. We continued to work with the Worshipful Company of Needlemakers, Florence Nightingale Foundation and Cavell Trust for Nurses and we developed a new partnership with Leukaemia CARE to focus on nursing and blood cancers. Nurse-led projects to improve patient care The Foundation’s project work during the year encompassed a wide range of activities. As part of a continued focus on the care home sector, the Foundation of Nursing Studies was funded to develop an animated film supporting the revalidation process


The NHS deals with over 1,000,000 people every 36 hours. All of these people are likely to have contact with a nurse, midwife or health care assistant. A highly skilled nursing workforce is central to the delivery of excellent patient care. That’s why the Foundation’s programme of education and career development grants is so vital. Beata was awarded £2,235 towards three modules of her degree in Cancer and Palliative Care. She told us: “I tried to self-fund my course and found it financially very hard. I worked full time, studied on my days off work and tried to find a good balance with family commitments. The bursary came at just the right time for me – I’d had my baby and was not able to work that much, so obviously I was worried about how I would be able to pay the university fees. I am grateful for the money I received as I could pay for three final modules without having to take on any debts. I think that receiving the bursary improved my confidence, which enabled me to finish my degree. This form of support and encouragement had such a positive impact on my studies. Towards the end of my studies, I found it really hard to balance work, university and family life. I also failed one of the modules, which made me think that maybe I should just leave it. Fortunately, with family support and financial support I received from the RCN Foundation, my work paid off and I got my degree last year.”

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for nurses working in a care home setting. Importantly, the film was endorsed by the Nursing and Midwifery Council. During the year, we also issued two open calls for projects to develop nursing in care homes. These projects will be delivered in 2017, underlining the Foundation’s commitment to improving nursing and care in this important sector. Projects that were awarded funding in 2015 continued to be developed and delivered in 2016. The Celebrating Nursing Practice project aims to showcase the very best of the profession by revealing nursing practice that often goes unobserved or is ‘under the radar’. This will be achieved by building a library of good practice and investing in a small number of projects to support their wider development and evaluation. We also supported 14 nursing students to attend the RCN’s International Centenary Conference as a development opportunity.

An international presence In 2016, we awarded our first international grant. Working in partnership with the Impact Foundation – which aims to build the national workforce of developing countries in order to reduce their reliance on overseas assistance – the Foundation fully funded the training of two student nurses in Bangladesh. The project was funded following a sustained fundraising appeal by RCN President Cecilia Anim. The funds raised by Cecilia were matched by the RCN Foundation and the project will begin in 2017. Fundraising achievements It has been another exciting year of fundraising for the Foundation. We are very grateful to the many hundreds of individuals who chose to fundraise for us or to make a donation. Many of our donors are nurses who, despite their constrained financial circumstances, have committed to making a regular donation to support nurses facing hardship. In 2016, the RCN centenary provided many varied opportunities for raising funds. This included a 1,500mile walk across the UK by RCN staff, who raised nearly £7,000 for the Foundation in the process. Another equally impressive achievement was the West Highland Way Challenge. Led by the Chairs of RCN Council and RCN Congress, 17 participants walked 96 miles in five days, raising nearly £12,000 in the process. Alongside this, fundraising activities also encompassed parties, cake eating (of course!), beauty treatments and naming a life-sized Lego nurse!

During the year, there have been a number of issues on which we have made slower progress than we would have liked. One example of this is the Customer Relationship Management (CRM) system, which was due to go live in 2016, but which has yet to be implemented. Whilst there was extensive development and testing of the new system in 2016, it was not ready to be implemented during the year. This also resulted in a delay to the redevelopment of the Foundation’s website, which was linked to the CRM system. However, these delays enable us to better plan and prepare for the onset of CRM. We were also unable to make as much progress as we would have liked with streamlining our grants programme. However, we hope to move forward with this important piece of work in 2017, with the appointment of a new Grants Manager.

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Strategic priorities The strategic priorities outlined below will guide and shape the RCN Foundation’s work in 2017 and beyond. They represent a commitment to supporting the nursing profession in the most effective ways, and to improving care for patients and their families, and the health and wellbeing of the wider public. Strategic Priority 1 Enabling nurses to improve patient care In 2017, we will develop and expand our grant-making activities. Our commitment to supporting projects with a care-home focus will continue, and we will be funding at least two major projects to support the nursing profession in a care-home setting. The aging population presents an urgent challenge for the health care sector in the years ahead. The Foundation is committing its resources to ensure that nursing teams are equipped with the skills and confidence needed to face the many issues that this presents, both to their profession and to their patients. We will also be ensuring that the learning from these projects is widely shared. In addition, we will be introducing new thematic priorities in response to the most critical issues facing the nursing profession and health care. These will form the basis of our work over the next five years. By the end of the year, we will have reshaped our education and career development grants to ensure that they enable the best and brightest individuals to enter and develop a career in nursing given the new funding arrangements introduced in England. We will also be evaluating our first international project to better understand the impact we can make in supporting nursing and health care overseas.

Strategic Priority 2 Providing support in times of need Supporting the nursing community in times of need remains a key priority for the Foundation. With the LampLight Support Service having been established in April 2016, the Foundation will be continuing to consolidate and strengthen the work of this service in 2017. We will be undertaking a formal evaluation to identify ways to extend the service to best meet the needs of nurses and health care assistants facing hardship. We will also be seeking ways to increase the impact of the service by building on our partnerships with other organisations. Strategic Priority 3 Increasing our impact We expect the challenges and pressures facing nursing and health care in the UK over the next few years to be immense. Increasing demand and decreasing resources will remain a constant theme, as will continual change and the need to innovate. Increasing our impact and growing potential to contribute positively to the agenda despite these challenges will be a central theme for our work in 2017. We will therefore be defining what impact means for us and how we increase it for our many different stakeholders. To achieve this priority there will also be a greater focus on publicising and disseminating the outcomes of our funded projects.

Objectives for 2017 In 2017 the Foundation will be focussing on: • Developing a new five year strategy 2018 – 2022; • Continuing to improve and expand our grant making; • Strengthening our governance framework; • Developing our fundraising, marketing and communications activities; • Embedding the new CRM and launch our new website; and • Developing effective partnerships.


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Financial review Investments, policy and performance The RCN Foundation is subject to the Trustee Act 2000. The Foundation’s investment objective is to seek to protect real income and capital growth over time. The trustees accept that in achieving this objective the portfolio will be subject to short-term volatility, but nevertheless they would like to achieve their goal with a low to medium level of risk. The Board oversees the management of the Foundation’s investment portfolio and monitors the performance of the investment manager. The Income Generation and Investment Committee reviews the investment strategy, policy and performance and makes recommendations to the Board as appropriate. The trustees specified that a part of the portfolio should be accessible at relatively short notice. Therefore the investment managers retain a short-term fund consisting of cash, short-term deposits and short-dated bonds. At 31 December 2016, £1,001,000 was held in the short-term fund as Money Market Investments and is shown as a current asset on the Balance Sheet (31 December 2015: £1,001,000). The Investment Committee agreed to adopt a segregated approach, investing in fixed interest issues and individual shares rather than funds. This is the most efficient way of achieving the agreed asset allocation and the Foundation’s ethical requirements. The fund managers have discretion over the selection of stocks but the contract with Sarasin & Partners stipulates the trustees’ requirement for the investments to be managed in a socially responsible manner in line with their values and corporate policies and their wish to avoid any investment in companies that manufacture tobacco products. The trustees have also stated a preference to avoid investments in hedge funds. Movement in the investments resulted in an overall increase in the market value of the combined portfolio from £28,700,000 at the start of the year to £30,774,000 at the end of the year including £1,001,000 in the short term investments. This appreciation in value can mainly be attributed to the net gains of the portfolio. The market value of investments is subject to the fluctuation of the open market and is thus exposed to a degree of uncertainty

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and speculation. The gross investment income in the year ended 31 December 2016 was £1,001,000 (31 December 2015: £989,000), associated investment management fees of £135,000 (31 December 2015: £134,000), which was higher than anticipated. Review of financial position The financial statements are presented in the format required under ‘Statement of Recommended Practice: Accounting and Reporting by Charities’ (SORP FRS 102) and the Statement of Financial Activities reflects the strategic objectives of the RCN Foundation and Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006 (as amended). The Statement of Financial Activities for the year ended 31 December 2016 and the balance sheet as at 31 December 2016 are set out on pages 20 and 21. The Statement of Financial Activities shows that the RCN Foundation had a net income of £2,351,000 in the year ended 31 December 2016 (31 December 2015: net loss of £141,000). Income Total income in the year was £1,524,000 (31 December 2015: £1,192,000). This included unrestricted income of £910,000 (31 December 2015: £747,000). Legacies, donations, income from fundraising events and gift aid amounted to £523,000 (31 December 2015: £203,000), including two substantial legacies with a combined total of £297,512. Unrestricted donations include £10,856 raised by the participants of the West Highland Way Challenge and £662 donated by RCN staff under the Pennies from Heaven Scheme. Investment income for the year was £1,001,000 (31 December 2015: £989,000), of which £744,000 was unrestricted (31 December 2015: £734,000). The RCN Foundation investments reported net gains of £2,068,000 (31 December 2015: £4,100 gains) mainly due to unrealised gains on the investment portfolio.


Expenditure Total expenditure in the year amounted to £1,241,000 (31 December 2015: £1,337,491), of which £764,382 (31 December 2015: £849,000) was from unrestricted funds. Expenditure was lower than anticipated mainly due to a substantial underspend in the awarding of Practice Development grants. In 2016, due to staff changes, the RCN Foundation focused its efforts on individual grant giving, laying the grounds for a more inclusive approach in 2017. In 2016, £483,000 restricted grants were paid; of these £268,000 (31 December 2015: £308,000) relates to benevolent grants awarded through the LampLight Support Service (refer to page 4 for more information about LSS) and the remainder are educational bursaries. The RCN Foundation paid £229,000 to the RCN as part of the agreement to run the LSS; this expenditure has been charged against unrestricted funds. An annual fee is agreed in advance to meet the cost of the service provided by the RCN for governance, finance, marketing and other services and is included within unrestricted expenditure. This was £266,223 in the year ended 31 December 2016 (31 December 2015: £283,000). The fee reflects staff costs for those RCN employees working on behalf of the RCN Foundation plus 10% overheads. In the expenditure note (Note 3 of the Financial Statements), the fee is allocated to the activities on which these staff members work. The total cost of raising funds in the year was £200,000 (31 December 2015: £184,000); this figure includes investment management fees, the cost to run the West Highland Way Challenge and a portion of operational and support costs (31 December 2015: £184,000). In the year trustee expenses of £13,000 were incurred (31 December 2015: £11,800). These costs are treated as unrestricted expenditure.

The level of free reserves at 31 December 2016 was £23,515,000 (31 December 2015: £21,848,000). This excludes those unrestricted funds that have been earmarked for particular purposes by the trustees and are shown as designated funds on the Balance Sheet, and excludes tangible fixed assets. The increase in reserves relates mainly to net investment gains and operating surplus. The investment and reserves policies reflect the trustees’ wish to increase the Foundation’s direct charitable expenditure year on year whilst recognising that, until alternative income streams are developed, the Foundation is largely reliant on reserves together with investment income for the furtherance of its charitable objectives. The trustees also acknowledge the inherent risk in holding the majority of assets within the investment portfolio, namely the fluctuation in market values. This risk is considered when setting the reserves policy, which is reviewed annually. The RCN Foundation financial statements have been prepared in accordance with the special provisions applicable to companies subject to the small companies regime. The RCN Foundation is considered to have sufficient resources to meet its obligations as they fall due for at least 12 months after the signing of the financial statements and there is no indication that the RCN Foundation would not be able to operate as going concern for the foreseeable future.

Reserves The RCN Foundation has adopted a reserves policy which it considers appropriate to ensure the Foundation can meet its objectives and at the same time manage the expectations of both its potential supporters and beneficiaries.


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Principal risks and uncertainties Our risk management framework is used to test the organisation’s key decisions and influence the use of our resources. Risks are assessed on a quarterly basis by the Board of Trustees to ensure that adequate measures are in place to manage the identified risks.

which is being rolled out by our new Grants Manager. A clear plan for the work will be developed, which will set out the key actions to be taken, the time frames within which these will be completed, and the stakeholders who will need to be involved.

Risk appetite is the amount and type of risk that the Foundation is willing to take in order to meet our strategic objectives. We have a range of appetites for different risks and these are set out below.

There is also a risk that large grant-funded projects are not properly managed and do not deliver the expected results, harming the reputation of the Foundation as an effective grant-giver. Controls to manage our grantmaking are in place and include having a robust due diligence process in place to select applications; linking funding to the satisfactory receipt of reports; and maintaining regular liaison with grantees.

Financial Appetite for risk: low There is an ongoing dependency on reserves and investment income. We continue to rely heavily on returns from our investment income to support our activities. Trustees are prioritising the need to diversify sources of income over time, though with a clear understanding that results will not be immediate. A more focused fundraising plan is being put in place, with targets from key fundraising areas identified. The Brexit vote and the US election result mean that investment income in 2017 could be lower than in previous years, and the Board will be keeping a close eye on our investments with our investment managers. Governance Appetite for risk: low There is a risk that the programme of change to streamline our governance processes, which began in 2016, will result in the loss of trustees and key staff, and a failure to agree the new strategy. While we have a low appetite for risk in this area, we do recognise that change is necessary and are therefore willing to accept the inherent risk associated with change. Therefore, changes will be carefully planned and taken forward in a structured and measured way, with the involvement of trustees. Operational Appetite for risk: medium There is a risk that the process of streamlining the Foundation’s grant-making process, which began in 2016, will take longer than expected. To mitigate this risk, the Foundation is taking a phased approach,

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Regulatory Appetite for risk: low There is a risk that the Foundation is not prepared for changes in charity and fundraising legislation. We will keep abreast of guidance and best practice emerging from the Fundraising Regulator, and ensure that our fundraising meets regulatory and good practice. The Foundation places great importance on compliance and has no appetite for any breaches of statute, regulations or professional standards, or for bribery or fraud. We have a low appetite for risk relating to actions that may put our standing in society and with our stakeholders in jeopardy. External Appetite for risk: medium There is a risk that the Foundation is not able to gain public and stakeholder support for its work in a highly competitive sector. The Foundation will be developing its new strategy during the year ahead. This will provide a clearer picture of its direction and priorities. It will also begin to demonstrate the clear blue water that exists between the Foundation and other nursing charities, even where there is overlap in our work. Finally, the Foundation will seek to develop more strategic partnerships with a wide range of organisations that meet our objectives and further our reach. We recognise that there is an inherent degree of risk in entering into such partnerships and so will ensure that we undertake due diligence before making any decision.


Board of Trustees

Reference and administrative details

The trustees who are in office or have been during 2016 are:

Registered office 20 Cavendish Square, London W1G 0RN Telephone 020 7409 3333 Website: www.rcnfoundation.org.uk

Robert Sowney Chair of the Board Charles Butterworth CBE, FRCN Vice-Chair and Chair of the Appointments Panel Helen Carter (resigned February 2017) Returned March 2016 following convalescence leave

Bankers National Westminster Bank PLC 1 Cavendish Square, London W1A 4NU

His Honour Judge John Colyer QC (retired January 2017)

Independent auditor Deloitte LLP Chartered Accountants and Statutory Auditor 2 New Street Square, London EC4A 3BZ

David Jones Chair of the Income Generation and Investment Committee from October 2016

Lawyers Bates Wells and Braithwaite 2-6 Cannon Street, London EC4M 6YH

Alison Leary Interim Chair of Grants Committee until October 2016

Investment managers Sarasin & Partners LLP Juxon House, 100 St Paul’s Churchyard, London EC4M 8BU

Sally Macdonald (resigned August 2016) Chair of the Investment Committee until August 2016 Vanessa Martin Chair of Scotland Committee Ian Norris Chair of the Benevolent Fund Committee until October 2016, then Chair of the Grants Committee from October 2016

Charity and Company registration numbers Registered Charity: 1134606 Scottish Registered Charity: SC043663 Registered Company: 7026001

Nicholas Pearson OBE Richard Piper Chair of Income Generation, Marketing and Communications Committee until October 2016 Sylvia Simmons Christine Perry Claire Vocat (née Jeeves) In 2016 a new committee structure was implemented further information is on page 13.


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Structure, governance and management Constitution

Our Strategy – 2012 and Beyond (2012-2017), are to:

The RCN Foundation was registered as a charity on 2 March 2010. It was registered as a company limited by guarantee in December 2009 and the Royal College of Nursing in the United Kingdom (RCN UK) is the sole member. The Memorandum and Articles of Association were incorporated on 22 September 2009.

•

The Foundation was set up as a result of a review of the legal and governance structure of the Royal College of Nursing, which is no longer a registered charity.

• • •

The Foundation has a Memorandum of Agreement with the Royal College of Nursing that sets out how the two organisations will work together to support nursing and improve care.

Governance

Objects The objects of the RCN Foundation are to: •

• •

•

promote the science and art of nursing and the better education and training of the nursing team and its efficiency in the profession of nursing; promote the advancement of nursing as a profession in all its branches; promote, through the medium of international agencies and otherwise, the foregoing purposes in other countries; and assist members of the nursing team who, by reason of adversity, ill health or otherwise, are in need of assistance of any nature.

Public benefit statement The trustees confirm that they have complied with the duty in section 4 of the Charities Act 2006 to have regard to the Charity Commission’s guidance on Charities and Public Benefit. Strategic plan Our mission is to support nurses, midwives and health care assistants as well as nursing students so that they can continue to provide the best possible care to their patients. Our priorities, as described in

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• •

fund and disseminate research into nursing practice and development; grant scholarships and learning and development bursaries; fund innovative nurse-led clinical development projects to improve the care experience of patients; reach out to those in need; support our people and community; and sustain the future of the Foundation.

The RCN Foundation’s Board of Trustees is independent of the Royal College of Nursing (RCN UK). Currently, it has 13 trustees, four of whom are appointed by RCN Council, and at least three of the members of the Board of Trustees must have no previous connection with the RCN. This enables us to retain our strong connections with the RCN whilst maintaining our independence. The first trustees were appointed by the RCN’s Council in 2010 through a public advertisement and interview process designed to identify trustees with as wide a range of different skills, backgrounds and experience as possible, in order to establish the new RCN Foundation. Since then the Appointments Panel of the Board has led the process of appointing a number of independent trustees. An induction programme for new trustees has been developed and will be implemented for new trustees from 2017. The Board of Trustees normally meets quarterly. In 2016, the Board reviewed its committee structure and agreed to merge some of its committees. Two new committees were created to manage our affairs efficiently and implement our strategic plan. The membership of these committees is largely drawn from the Board and the committees are chaired by Board members. However, we have also appointed additional committee members with particularly relevant experience and expertise.


During 2016 the Benevolent Fund and Grants Committees were merged to create a new Grants Committee. This committee is accountable to the Board for the development and implementation of the strategy to support members of the nursing team in need of assistance, as well as the Foundation’s project grants and education bursaries programme. The Income Generation Marketing and Communications Committee was merged with the Investment Committee to become the Income Generation and Investment Committee. The committee has been tasked with diversifying the Foundation’s income sources. It is accountable to the Board for the development and delivery of the fundraising, marketing and communications initiatives, as well as keeping the investment strategy under regular review and monitoring the performance of the investment manager. The Appointments Panel oversees the recruitment and appointment of trustees, chair and vice chair elections and committee appointments on behalf of the Board. It also oversees trustees’ personal inductions, development programmes and performance reviews.

Compliance Our key governance documents, processes and controls are in place to ensure that the Foundation operates in an efficient and effective way in order to best deliver its charitable objectives. We conduct regular effectiveness reviews of these. We have a statement of beliefs and values described in the original strategic document Our strategy – 2012 and Beyond. This is available in hard copy and on the Foundation website. It sets out our priorities up until 2018. We review our strategy each year and we have an annual plan against which our activities and achievements for that year are monitored. A financial strategy is also in place. Conflicts of interest Our register of interests is available on our website. We have guidance for managing conflicts and we ask trustees and advisers to identify any conflicts at the beginning of each meeting.

The Scotland Committee monitors and evaluates our work in Scotland. We are looking to set up committees in Wales and Northern Ireland over the next 12 to 18 months. Terms of reference have been agreed for these committees by the Board. Management The RCN Foundation operates from the RCN’s headquarters and is staffed by RCN employees under a Services Agreement, which is kept under regular review. A new Head took up post in March 2016. The Foundation is also supported by Jane Clarke, RCN Group Secretary, and Tim Golbourn, RCN Director of Finance & Business Enablement. Other RCN staff support the RCN Foundation as required.


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Thank you to our supporters The work of the Foundation, and the support that we have been able to provide to hundreds of nurses, midwives and health care assistants, would not have been possible without the help of so many individuals and organisations. We therefore want to say a big thank you to all of the people and organisations that have supported our work in 2016. Your generosity has been truly remarkable. Here are just a few examples of the support that we have received during the year.

Worshipful Company of Needlemakers The Worshipful Company of Needlemakers, a City of London livery company, once again partnered with the Foundation to deliver an education bursary for nurses to fund learning and development activities that enhance patient care. As a result of the funding, 13 bursaries were awarded. Helen Kerslake

LV provided sponsorship for the Foundation’s West Highland Way Challenge. Their support of the event contributed to making it a success. The walk raised nearly £12,000 for the Foundation.

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Helen is a nurse and was a member of the team of 17 that took on the West Highland Way Challenge in aid of the RCN Foundation. This arduous 96-mile trek was undertaken in just five days, over challenging terrain including Loch Lomond and Conic Hill. Helen raised over £1,000 for the Foundation.



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Statement of trustees’ responsibilities The trustees (who are also directors of RCN Foundation for the purposes of company law) are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including FRS102, “The Financial Reporting Standard applicable in the UK and Ireland”. Company law requires the trustees to prepare financial statements for each financial year. Under that law the trustees have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including FRS102 “The Financial Reporting Standard applicable in the UK and Ireland”. Under company law the trustees must not approve the financial statements unless they are satisfied that they which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the trustees are required to: • • • •

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select suitable accounting policies and then apply them consistently; observe the methods and principles in the Charities SORP; make judgments and estimates that are reasonable and prudent; and 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 disclose with reasonable accuracy at any time the financial position of the charitable company 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 hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. In so far as the trustees are aware: • there is no relevant audit information of which the charitable company’s auditor is unaware; • the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information; and • the trustees are responsible for the maintenance and integrity of the corporate and financial information included on 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.

Robert Sowney Chair of the Board of Trustees Date: 14 March 2017


Independent Auditor’s report to the Trustees and members of RCN Foundation We have audited the financial statements of RCN Foundation for the year ended 31 December 2016 which comprise the Statement of Financial Activities, the Summary Income and Expenditure Account, the Balance Sheet, and the related notes 1 to 15. 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 Republic of 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 and to the charity’s trustees, as a body, in accordance with section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and regulation 10 of the Charities Accounts (Scotland) Regulations 2006 (as amended). Our audit work has been undertaken so that we might state to the charitable company’s members and the trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company, the charitable company’s members as a body and the charitable company’s trustees as as 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. We have been appointed as auditor under section 44(1) (c) of the Charities and Trustee Investment (Scotland) Act 2005 and under the Companies Act 2006 and report in accordance with regulations made under those Acts. 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 charitable company’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. In addition, we read all the financial and non-financial information in the annual report to identify material inconsistencies with the audited 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. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report. Opinion on financial statements In our opinion the financial statements: • give a true and fair view of the state of the charitable company’s affairs as at 31 December 2016 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended; • have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and • have been prepared in accordance with the requirements of the Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005 and regulation 8 of the Charities Accounts (Scotland) Regulations 2006 (as amended). Opinion on other matters prescribed by the Companies Act 2006 In our opinion, based on the work undertaken in the course of the audit: • the information given in the Trustees’ Annual Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and • the Trustees’ Annual Report have been prepared in accordance with applicable legal requirements.

17

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified any material misstatements in the Trustees’ Annual Report. 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 and the Charities Accounts (Scotland) Regulations 2006 (as amended) requires us to report to you if, in our opinion: • the charitable company has not kept proper and adequate accounting records or returns adequate for our audit have not been received from branches not visited by us; or • the financial statements are not in agreement with the accounting records and returns; or • certain disclosures of trustees’ remuneration specified by law are not made; or • we have not received all the information and explanations we require for our audit; or • the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies exemption from the requirement to prepare a Strategic Report.

Reza Motazedi (Senior statutory auditor) for and on behalf of Deloitte LLP Chartered Accountants and Statutory Auditor London, United Kingdom Date: 4 April 2017 Deloitte LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006 and consequently to act as the auditor of a registered charity.

18



19

Statement of financial activities 31 December 2016 (Incorporating the income and expenditure account)

Note

Unrestricted funds 2016 2015 £’000 £’000

Restricted funds 2016 2015 £’000 £’000

Endowment funds 2016 2015 £’000 £’000

31 December

31 December

2016 £’000

2015 £’000

Income and endowments Donations and legacies

155

13

357

190

–

–

512

203

744

734

257

255

–

–

1,001

989

11

–

–

–

–

–

11

–

910

747

614

445

–

–

1,524

1,192

188

184

–

–

–

–

188

184

12

–

–

–

–

–

12

–

112 402 12 38

390 255 10 10

185 292 – –

181 307 – –

– – – –

– – – –

297 694 12 38

571 562 10 10

764

849

477

488

–

–

1,241

1,337

Net gains on investments

1,527

3

444

1

97

–

2,068

4

Net income/(expenditure)

1,673

(99)

581

(42)

97

–

2,351

(141)

(6)

–

6

–

–

–

–

–

12

1,667

(99)

587

(42)

97

–

2,351

(141)

Fund balances brought forward at the start of the period

12

21,902

22,006

6,335

6,372

991

991

29,228

29,369

Fund balances brought forward at the end of the period

12

23,569

21,902

6,922

6,335

1,088

991

31,579

29,228

Income earned from other activities Investment income

2

Income earned from other trading activities Income from fundraising events Total Expenditure Cost of raising funds: Investment management costs Fundraising activities Expenditure on charitable activities: Education and training Benevolent funds Clinical practice Research Total

3

Transfers between funds Net movement in funds Reconcilation of funds

Fund balances brought forward have been restated as £5,000 has been reallocated from the unrestricted funds to the restricted funds for the period ended 31 December 2015. The balances brought forward as at 31 December 2015 reported unrestricted funds: £21,907,000 and restricted funds: £6,330,000. These have been restated to report unrestricted funds: £21,902,000 and restricted funds: £6,335,000. Further information can be found in note 12. There are no recognised gains or losses other than those disclosed above. All of the above results derive from continuing operations. There is no difference between the net income for the periods stated above and the historical cost equivalent. Notes on pages 23 to 32 form part of these financial statements. 20


Balance sheet as at 31 December 2016

Note

31 December 2016 £’000

31 December 2015 £’000

6

48

48

7.1

29,773

27,700

29,821

27,748

8

15

31

7.2

1,001

1,001

Cash at bank and in hand

1,174

884

Total current assets

2,190

1,916

(372)

(436)

1,818

1,480

31,639

29,228

9

(60)

–

10

31,579

29,228

Permanent endowment

12

619

563

Expendable endowment

12

469

428

Restricted income funds

12

6,922

6,335

8,010

7,326 1,471 20,425 6

Fixed assets Tangible assets Long-term investments Total fixed assets Current assets Debtors Short-term investments

Liabilities Creditors: amounts falling due within one year

9

Net current assets Total assets less current liabilities Creditors: amounts falling due after one year Total net assets The funds of the charity Restricted funds:

Total restricted funds Unrestricted funds: Revaluation reserve General funds Designated funds

12

3,665 19,898 6

Total unrestricted funds

12

23,569

21,902

31,579

29,228

11

Total charity funds

Notes on pages 23 to 32 form part of these financial statements. RCN Foundation financial statements have been prepared in accordance with the special provisions applicable to companies subject to the small companies’ regime. Approved by the Board of Trustees on 14 March 2017, and signed on their behalf by:

Robert Sowney Chair of the Board of Trustees ANNUAL REP ORT AND F INANCIAL STAT EMENT S

21

Statement of cash flows 2016 Total funds £’000

2015 Prior year funds £’000

2,351

(141)

Dividends and interest from investments

(1,001)

(989)

Gains from investments

(2,068)

(4)

Note Reconciliation of net movement in funds to net cash flow from operating activities: Net movement in funds

Decrease/(increase) in debtors

8

16

(30)

(Decrease)/increase in creditors

9

(4)

134

(706)

(1,030)

(706)

(1,030)

Net cash used in operating activities Cash flows from operating activities: Net cash used in operating activities Cash flows from investing activities: Purchase of fixed assets

6

–

(24)

Dividends and interest from investments

2

1,001

989

Proceeds from sale of investments

7

13,435

13,233

Purchase of investments

7

(13,238)

(12,835)

1,198

1,363

Change in cash and cash equivalents in the reporting period

492

333

Opening cash at bank

884

950

Opening cash in investments

757

245

Cash and cash equivalents at the beginning of the reporting period

1,641

1,195

Change in cash and cash equivalents due to exchange rate movements

(693)

113

Cash and cash equivalents at the end of the reporting period

1,440

1,641

1,174

884

266

757

Net cash provided by investing activities

Represented by: Closing cash at bank Closing cash in investments

22


Notes to the financial statements 1. Accounting policies The principal accounting policies are summarised below. They have all been applied consistently throughout the year and to the preceding year. a. Accounting convention The financial statements have been prepared under the historical cost convention, as modified for the revaluation of investments at market value, and are in accordance with the Statement of Recommended Practice: Accounting and Reporting for Charities (SORP 2015) guidance on the application of the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS102) effective 1 January 2015 and the Companies Act 2006, and Charities Accounts (Scotland regulations 2006) and Charities and Trustee Investment (Scotland) Act 2005. The RCN Foundation meets the definition of a qualifying entity under FRS102 and has therefore taken advantage of disclosure exemptions available to it in respect of its separate financial statements, which are presented alongside the consolidated financial statement (see note 15). Accordingly, exemption has been taken in relation to disclosure of remuneration of key management personnel. The RCN Foundation constitutes a public benefit entity as defined by FRS102. The trustees consider that there are no material uncertainties about the RCN Foundation’s ability to continue as a going concern. The most significant areas of adjustment and key assumptions that affect items in the financial statements are to do with the valuation of investments. With respect to the next reporting period, 2017, the most significant area of uncertainty that affects the carrying value of assets held by the RCN Foundation is the valuation of investments. Since the market value of investments are dependent on the fluctuation of the open market these are exposed to a degree of uncertainty and speculation. b. Statement of cash flows The RCN prepares and files a consolidated statement of cash flows which includes the cash flows of the RCN Foundation. Under FRS102, a statement of cash flow is incorporated within these financial statements for the year ended 31 December 2016 on page 21. c. Income All income is accounted for when the RCN Foundation has entitlement to the funds, the amount can be quantified


and it is probable that the income will be received. Income includes interest and dividends receivable from the investment portfolio, donations and legacies to the various restricted funds held by the RCN Foundation, and unrestricted legacies and donations gifted to the RCN Foundation. Legacy income is accrued at the point that the entitlement and measurability of the amount become known and it is probable that the legacy income will be received. Entitlement in the case of residual and pecuniary legacies is counted from the earlier of estate financial statements being finalised and cash received. d. Expenditure Expenditure is recognised on an accruals basis and allocated according to the RCN Foundation’s objectives. Charitable activities relate to the objectives which are explained within the Trustees’ report of this annual report and financial statements. Restricted expenditure relates to grants and awards paid out under the terms of the individual funds. Where expenditure cannot be directly allocated under these main categories, they are allocated across activities in the ratio shown below based on actual direct expenditure incurred on the activities. 31 December 2016 %

31 December 2015 %

Cost of raising funds

16

14

Education and training

24

42

Benevolent fund

56

42

Clinical practice

1

1

Research

3

1

Cost of raising funds The cost of raising funds relate to the fee paid to the investment managers and other costs incurred by the charity to raise funds for its charitable work. Objective 1: Education and training Promoting the science and art of nursing and the better education and training of nurses and their efficiency in the profession of nursing. Objective 2: Benevolent funds Assisting nurses who by reason of adversity, ill-health or otherwise are in need of assistance of any nature.

23

Objective 3: Clinical practice Supporting the development of clinical practice and the improvement of care. Objective 4: Research To fund nursing-led innovation projects and research and development activity to support the development of leading edge clinical practice, educational tools and the improvement of patient care. Grants payable Grants and bursaries payable are charged to the Statement of Financial Activities in the year in which the grant is awarded and the successful granting is conveyed to the recipient. In cases where the offer is conditional, grants are wholly recognised as expenditure in the year when the conditions attached solely relate to the recipient meeting the conditions of the grant. If there are conditions that are within the control of the RCN Foundation the expenditure is recognised to the extent the conditions are fulfilled. Those grants which are payable in future periods are included in creditors as set out in note 5. The grant payable to RCN for the LampLight Support Service is recognised on a yearly basis for the duration of the grant due to the terms of the agreement, which aligns the grant payable to the cost of providing the service in the year. Support costs Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. These costs have been allocated between cost of raising funds and expenditure on charitable activities. The bases on which support cost have been allocated are set out in note 3. Governance costs include all cost of compliance with constitutional and statutory requirements, including legal and audit fees and the cost of trustee meetings and are included within support costs. e. Irrecoverable value added tax Where value added tax is incurred and cannot be recovered it is expensed in the Statement of Financial Activities. Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred. f. Tangible assets - software The RCN Foundation along with the RCN has jointly commissioned Silverbear to build a CRM Database which at 31 December remains as an asset under construction and is not depreciated until it is brought into use. The database will cost the RCN Foundation

24

£72,700 payable in 3 instalments to the RCN. The database will be depreciated over five years using straight line depreciation after deducting any residual value at the end of the useful life of the database. g. Investments Investments are initially recognised at their transaction value and subsequently measured at their market value, where market value represents the mid-market price on the last trading day before the period end. Investments purchased as part of the treasury management, which are intended to be held for less than one year, are shown as current assets (short-term investments). Investments held to generate longer term income and capital growth are shown within fixed assets. All gains and losses are taken to the Statement of Financial Activities as they arise. Realised and unrealised investment gains and losses are combined in the Statement of Financial Activities. Any unrealised or realised gains arising from investments are taken to the fund for which the investments are held. h. Endowments Where funds are given to be held as capital, they are shown as endowment funds in the financial statements. Expendable endowments are those where the trusts’ terms provide for the expenditure of capital rather than its preservation. Permanent endowment funds are donations that have been given to the RCN Foundation to be held as capital with no power to convert the funds to income. Permanent endowment funds are held by the Foundation as a corporate trustee and do not form part of the corporate property of the charitable company. Investment income generated from the endowment funds is allocated to these restricted funds. i. Restricted income funds Where income is received for purposes specified by the donor or the terms of appeal under which it was raised, that income is shown as restricted in the Statement of Financial Activities. This includes income arising from endowment funds if it is restricted in use by the donor. Expenditure for the specified purposes is shown as restricted expenditure. Any unexpended balance at the balance sheet date is carried forward as a restricted income fund. j. Unrestricted funds Unrestricted funds are expendable at the discretion of the trustees in the furtherance of the objects of the RCN Foundation.


k. Designated funds Designated funds are unrestricted funds that have been earmarked for a particular purpose by the trustees. The purposes of the designated funds are set out in note 12. l. Financial Instruments Debt instruments that are classified as payable or receivable within one year on initial recognition and which meet the above conditions are measured at the undiscounted amount of the cash or other consideration expected to be paid or received, net of impairment. m. Pensions The RCN UK operates defined benefit and defined contribution schemes. As Foundation staff are employed by the RCN and work for the Foundation in accordance with the SLA they fall within the pension schemes of the RCN. n. Critical accounting judgements The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the statement of financial performance date and the amounts reported for income and expenditure during the year. However, the nature of the estimates means that actual outcomes could differ from those estimates. o. Going concern The RCN Foundation is considered to have sufficient resources to meet its obligations as they fall due for at least 12 months after the signing of the financial statements and there is no indication that the RCN Foundation would not be able to operate as going concern for the foreseeable future.


25

2. Investment income 31 December 2016 £’000

31 December 2015 £’000

UK equities

465

454

Overseas equities

265

276

UK fixed interest

268

254

3

5

1,001

989

Bank interest Total

3. Analysis of total expenditure Cost of raising funds £’000

Charitable activities £’000

Support costs £’000

31 December 2016 £’000

31 December 2015 £’000

– –

301 465

– –

301 465

362 477

40

210

16

266

283

135

–

–

135

134

Trustee costs

–

–

13

13

12

Audit and tax advice

–

–

11

11

10

Publicity and events

–

–

25

25

35

12

–

–

12

–

Professional services

–

–

6

6

16

Travel and subsistence

–

–

4

4

4

Miscellaneous cost

–

–

3

3

4

187

976

78

1,241

1,337

13

65

(78)

–

–

200

1,041

–

1,241

1,337

Grants/bursaries: — to organisations — to individuals RCN service fee Investment management fee

Fundraising costs

Support costs Total

Support costs are allocated across the charitable activities and the cost of raising funds based on the actual costs incurred on these activities. Included in the support costs are £23,892 spent on governance for the year (31 December 2015: £28,000). External audit fees — auditor services of £10,800 including VAT are included in these financial statements (31 December 2015: £10,400).

26


Expenditure on charitable activities Total charitable activities

Grants/bursaries (note 5): — to organisations — to individuals

Education and training £’000

Benevolent funds £’000

Clinical practice £’000

Research £’000

31 December 2016 £’000

31 December 2015 £’000

16 202

259 263

– –

26 –

301 465

362 477

60

128

11

11

210

225

278

650

11

37

976

1,064

19

44

1

1

65

89

297

694

12

38

1,041

1,153

RCN service fee Support costs Total

Staff costs The RCN Foundation does not employ any staff directly. A service level agreement is in place between RCN UK and RCN Foundation for the provision of services to RCN Foundation. Under the SLA there are are six employees who work for RCN Foundation (31 December 2015: seven employees), one of whom earns between £60,000 - £70,000 per annum. Pension payments made with regard to this individual amounted to £5,200 (31 December 2015: £nil). 31 December 2016 £’000

31 December 2015 £’000

Wages and salaries

183

237

Social security costs

20

20

Other pension costs

15

26

218

283

Total

4. Taxation The charity is exempt from tax as all its income is charitable and is applied for charitable purposes. 5. Grants payable Unrestricted funds £’000

Restricted funds £’000

31 December 2016 £’000

31 December 2015 £’000

201

179

380

210

Awarded in the period: Grants and bursaries Unused awards written back

289 –

483 (6)

772 (6)

862 (23)

Charge to SOFA (note 3)

289

477

766

839

(309)

(461)

(770)

(669)

Balance carried forward at the end of the period

181

195

376

380

Falling due within one year

121

195

316

380

Falling due after one year

60

–

60

–

Balance brought forward at start of period

Paid in period


27

Grants were awarded as follows: 31 December 2016 £’000

31 December 2015 £’000

Educational bursaries

203

192

Benevolent grants

268

308

(6)

(23)

465

477

RCN Public Lecture Series

19

18

Custody Caring Conference

–

2

LampLight Support Service (LSS)

229

109

Florence Nightingale Foundation

19

19

–

10

(32)

192

RCN Centenary Conference Student Bursaries

(1)

7

Healthy Weight Initiatives for Nurses

30

–

The IMPACT Foundation

11

–

Foundation of Nursing Studies

26

–

–

5

301

362

Grants to individuals:

Write-backs Total grants to individuals Grants to organisations

Cavell Nurses Trust RCN Centenary Project (Educational)

Huntingtons Disease Association Total grants to organisations

In the year the RCN Foundation awarded educational bursaries to 127 individuals and benevolent grants to 526 individuals. 6. Tangible assets The RCN Foundation along with the RCN has jointly commissioned Silverbear to build a CRM Database which at 31 December remains as an asset under construction. The database will cost the Foundation £72,700 payable in 3 instalments to the RCN. An amount of £48,484 (two instalments of £24,242) has been recognised as asset under construction.

28


7. Investments 7.1. Long-term investments 31 December 2016 £’000

31 December 2015 £’000

26,943

27,450

9,238

9,836

(8,704)

(10,195)

(731)

(38)

567

620

2,194

(730)

29,507

26,943

266

757

Market value at the end of the period

29,773

27,700

Historic cost at the end of the period

26,108

26,229

31 December 2016 £’000

31 December 2015 £’000

5,248

4,567

UK equities

10,209

9,306

Global equities

10,496

10,411

Alternative assets

2,033

1,326

Property

1,597

1,401

190

689

29,773

27,700

Market value at the start of the period Additions at cost Disposals at carrying value Redemptions Realised gain/(loss) Unrealised gain/(loss) Investments at market value at the end of the period Cash held for reinvestment

Investments at market value comprise:

Listed investments Fixed interest (Government securities and bonds)

Liquid assets in long-term fund Total

The trustees believe that the carrying value of the investments is supported by their underlying net assets. Holdings over 5% None of the investments represented holdings in excess of 5% of the investment portfolio at the start or the end of the period. 7.2. Short-term investments 31 December 2016 £’000

31 December 2015 £’000

Market value at the start of the period

1,001

1,000

Additions at cost

4,000

3,000

(4,000)

(3,000)

1,001

1,000

–

1

Market value at the end of the period

1,001

1,001

Historic cost at end of the period

1,000

1,000

Redemptions Investments at market value at period end Cash held for reinvestment


29

8. Debtors 31 December 2016 £’000

31 December 2015 £’000

1

6

Due from RCN UK

14

25

Total

15

31

31 December 2016 £’000

31 December 2015 £’000

10

5

316

380

46

47

–

4

372

436

Grants payable (note 5)

60

–

Total

60

–

Prepayments and accrued income

9. Creditors

Amounts falling due within one year Trade Creditors Grants payable (note 5) Accruals Other Creditors Total Amounts falling due after one year

10. Analysis of net assets between funds

Unrestricted funds £’000

Restricted funds £’000

Endowment funds £’000

Total funds 31 December 2016 £’000

Total funds 31 December 2015 £’000

Fund balances at the end of the period are represented by: Software Investments Current assets – Current liabilities and provisions – Non current liabilities

48 23,821 (84) (156) (60)

– 4,864 2,274 (216) –

– 1,088 – – –

48 29,773 2,190 (372) (60)

48 27,700 1,916 (436) –

Total net assets

23,569

6,922

1,088

31,579

29,228

11. Revaluation reserve 31 December 2015 £’000

Investment Unrealised Gain £’000

31 December 2016 £’000

Revaluation Reserve

1,471

2,194

3,665

Total

1,471

2,194

3,665

30


12. Movement in funds

Expenditure £’000

Net investment gains £’000

Transfers between Funds £’000

31 December 2016 £’000

–

–

14

–

161

417

–

–

41

–

458

Educational funds

34

–

–

3

–

37

Benevolent funds

382

–

–

38

–

420

11

–

–

1

–

12

991

–

–

97

–

1,088

1,619

218

(106)

138

–

1,869

Trevor Clay Scholarship fund

337

12

(6)

26

–

369

John Colyer fund

243

8

(34)

24

–

241

Cowdray Scholarship fund

197

8

7

14

–

226

Other educational funds

543

49

(46)

30

6

582

Total educational funds

2,939

295

(185)

232

6

3,287

505

201

(290)

8

–

424

1,686

60

–

126

–

1,872

857

31

(2)

63

–

949

3,048

292

(292)

197

–

3,245

348

27

–

15

–

390

6,335

614

(477)

444

6

6,922

21,896

910

(764)

1,527

(6)

23,563

6

–

–

–

–

6

29,228

1,524

(1,241)

2,068

–

31,579

31 December 2015 £’000

Income £’000

Educational funds

147

Research fund — Daphne Heald R&D Fund

Endowment funds Permanent

Expendable

Other funds Total endowment funds Restricted income funds Educational funds England & Wales Edu. fund

Benevolent funds RCN Benevolent fund RCN Housing fund Other Benevolent funds Total benevolent funds Research funds Total restricted funds Unrestricted funds General funds Designated funds Total funds


31

The funds we hold are for the following purposes: Educational funds To provide higher educational facilities, scholarships and annual awards for nurses who are studying or intending to study. Benevolent funds To assist nurses who by reason of adversity, ill health or otherwise are in need of assistance. Research funds To fund a research and development unit within the RCN and to provide funds to undertake research projects. Transfers between funds During the year transfers totalling £6,100 were made from the unrestricted fund into the restricted education fund to be used for additional educational bursaries. Designated fund - restatement Designated fund balance brought forward at 31 December 2015 (£1,000) has been restated to £6,000 to correct a fund categorisation error. The adjustment was correctly presented in 2015 financial statements in Note 12 Movement in funds, not in the Statement of Financial Activities. This has been corrected in 2016 Statement of Financial Activities. 13. Related party transactions During the year a service charge of £266,223 was paid by the RCN Foundation to RCN UK based upon the agreed service level agreement (31 December 2015: £283,000). Project grants of £192,000 were committed towards the RCN Centenary, celebrating the good practice in Nursing and its wider dissemination. As at year end £131,967 remains unpaid. In 2016 a total of £229,058 has been paid to RCN UK for the LampLight Support Service (LSS) which has replaced the Referral and Assessment Services (RAS). A repayment of LSS unused grant of £8,706 from RCN UK remains outstanding at year end. The RCN Foundation will grant the RCN UK funding of £56,620 towards the Public Lecture Series project. The second tranche of £18,865 was paid to RCN UK in the year. This is aimed at inspiring learning and debate on issues that concern nursing for the benefit of all. 14. Remuneration None of the trustees received remuneration. Costs incurred by the RCN Foundation Trustees while carrying out trustee duties amounted to £11,009 in the period (31 December 2015: £11,816). These expenses related to £3,585 in accommodation and meals and £7,424 in travel. These costs are made up of both out of pocket expenses reimbursed as well as those paid directly to a third party. 15. Ultimate controlling party The RCN is the sole company law member of the Foundation. It discharges that role as a quasi trustee by using its membership to further the charitable purposes of the Foundation. However the Foundation is established for exclusively charitable purposes and the RCN will respect at all times the Foundation’s independence as a charity, separate and distinct from the RCN. The ultimate sanction to appoint and dismiss trustees resides with the RCN. The RCN’s principal place of business is 20 Cavendish Square, London, W1G 0RN. The results of the Foundation are included in the consolidated financial statements of the RCN which are available from the above address.

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The RCN foundation is an independent charity supporting nursing to improve the health and wellbeing of the public. Registered Charity: 1134606 Scottish Registered Charity: SC043663 Registered Company: 7026001 Published by The RCN Foundation 20 Cavendish Square London W1G 0RN www.rcnfoundation.org.uk 2017 Publication code 005 914

How you can support us and get involved If you have been inspired by what you have read, please join us in helping as many nurses, midwives and health care assistants as possible. You can get involved and support our work in a number of different ways. Make a donation

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Your challenge, your way

Get baking, get quizzical or get active and help nursing today and for the future. We’ve got lots of fundraising ideas, tips and materials to help you have a great time while you fundraise. Visit www.rcnfoundation.org.uk for more ideas.

Leave a legacy in your will

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Support from companies is an important way of ensuring that we can continue to carry out our vital work. We know that each company is unique and has different needs. That’s why we will provide a tailor-made approach for each company we work with, helping them to get the best out of the partnership. However you choose to become involved, your support will make a lasting difference to the lives of the nursing community both now and in the years ahead. Thank you.