The Trustees present their annual report and financial statements for the year ended 31 December 2021.
The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the Charity's governing document, the Companies Act 2006 and “Accounting and Reporting by Charities: Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (as amended for accounting periods commencing from 1 January 2016).
The company is a charity which exists to aid the provision of information and relief to cancer patients and their families and carers mainly in Surrey, West Sussex and Hampshire.
Advice and Information
The Fountain Centre was established in 1998 in the Royal Surrey County Hospital, Guildford to provide a caring environment for patients newly diagnosed with cancer, in order to balance the traditional approaches to cancer treatment with a range of complementary therapies and individual support. The Centre is located within the St Luke’s wing of the Hospital on two floors, a level A facility with treatment rooms was opened in April 2012 to extend the services provided by the original centre. Within this Centre, patients, their families and carers can make informed choices about their future and become active in their own self-management. In 2015, the Centre extended its outreach services at other local hospitals. Most administrative staff are employed by the Royal Surrey NHS Foundation Trust, which is then in most cases, reimbursed by the company. As a temporary arrangement, additional staff have been provided for level A via the hospital at full cost to the Centre.
The Hospital provides the accommodation together with the related utilities in which the centre is located. The company contributes towards the running costs of the Centre. Therapists and volunteers are an essential part of the day to day operation. The Company funds the provision of books, leaflets, audio and video facilities to give information free of charge to those who visit the Centre. The Fountain Centre has a resource website for patients to access information and advice. As a result of COVID the service has also significantly increased its virtual and online services.
Future Strategy and purpose
In order to meet the objects of the company in support of The Fountain Centre operations, the future strategy includes seeking ways to expand the premises and facilities available to allow an increase in the services provided to meet the rise in numbers of people using the Centre year on year. To accommodate trading activities, Fountain Centre Services Limited was incorporated in 2015 and started trading on 1 February 2016. The aims set out in the Business Plan established in 2014 covering 2015 to 2020 have been pursued and updated a nd a Centre Development strategic group established to monitor, review and update the plan to be completed in 2022.
The Trustees review the Charity’s objectives and activities to ensure they continue to reflect its aims. In carrying out this review, the Trustees have considered the Charity Commission’s general guidance on public benefit and are satisfied that it meets the criteria in full.
Funding via Tesco’s centennial grant provided us with the opportunity to create a post to work on the Hospital’s new chemotherapy bus. This service was discontinued in 2021 as the demand for our services was reduced as a result of COVID-19.
Space at Frimley Park and Ashford hospitals was identified and building in the two centres was to begin in 2020. Sadly, as a result of COVID-19, these plans were put on hold with a view to start discussions about developing outreach services when conditions allowed.
Since the outbreak of COVID-19 in the first quarter of 2020, Trustees have been aware that we are entering a more severe financial climate which may affect not only T he Fountain Centre directly but also the ability of grant awarding organisations to fund our activities in future might decrease. When funding for an activity enters its final year, Trustees review with the Head of The Fountain Centre whether there is still a demand for the service and, if so, how it might continue to be funded. The Head of The Fountain Centre updates the Board on progress in securing funding at its quarterly meetings.
COVID-19
The COVID-19 pandemic began during the first quarter of 2020 and continued into 2021. The pandemic has had an impact on the services offered by the charity, fundraising, reserves and governance. In early 2021, the country was back in lockdown , however, the hard work in the previous year to establish a strong virtual service meant we were able to switch back to virtual service until the summer. Although restrictions around mask wearing and social distancing remained during 2021, certain services were able to return following strict guidance.
Fundraising
Fundraising continued to be affected during 2021. Reduced donations due to limited fundraising activity and footfall within the centre combined with the Fountain Centre being unable to host any events all impacted on the overall income. We continued to be funded for specific activities and roles and are very grateful for the ongoing support from our donors. However, this year we have been unable to achieve the full income required and have needed to use some of our reserves.
Governance
We reported last year that we had been able to maintain good governance during the emergency by holding Board meetings and meetings of its key cornerstone groups via video conference. This practice has continued to the summer of 202 2 and is being kept under review.
The Trustees are grateful for the unstinting efforts of their staff and volunteers during this difficult period.
Although 2021 has been more stable and we were able to remain open throughout the year we did need to adapt the services based on government advice and due to cancer patients being immune compromised. We continue to be careful with some services remaining virtual and the remainder being reinstated slowly as we recruit new volunteers.
The national cancer picture shows more people are being diagnosed later and therefore needing more treatment. This can be seen with a 15-20% increase across chemotherapy and radiotherapy.
This increase has been mirrored in T he Fountain Centre and we are seeing more complex patients with specific demand on symptom support, welfare benefits and psychological support. We received on average 110 referrals a month, with each referral taking approximately 60 minutes to assess, and the majority being referred to 3 or more services.
Approximately 50% of our volunteers did not return to T he Fountain Centre following COVID. However, with strong business cases we were able to access funding for a number of roles to be able to maintain and develop our services whilst we advertised and recruited new volunteers.
We established a new connection with Macmillan Citizens Advice and in 2021, following a successful funding application, we agreed to provide welfare benefits on site at T he Fountain Centre. We also secured funding for an Occupational Therapist to run specific therapy education sessions for patients on hormone treatment following a cancer diagnosis.
Our relationship with Surrey and Sussex Cancer Alliance , The Royal Surrey NHS Foundation Trust and St Luke’s Cancer Centre grew stronger during 2021 with an increased feeling of collaboration and support.
Results
The net outgoing resources for the year amounted to £102,005 (2020: £175,110 incoming) including net incoming resources of £2,636 (2020: £37,737) related to designated and restricted funds. At the end of the year General Unrestricted Funds amounted to £360,156 (2020: £464,797), Designated Funds £271,128 (2020: £273,664) and Restricted Funds £134,088 (2020: £128,916).
Fundraising events raised negligible sums of £12,426 in 2021. In addition, general unrestricted donations were £99,344 (2020: £327,026) (see note 3).
Reserves Policy
The Trustees have established a policy whereby the aim is to hold General Reserves which equate to a minimum of six months of the annual running costs of operating the Fountain Centre. We are currently exceeding this reserve target and closely monitor funding needs of the charity on an ongoing basis, balancing the desire to maintain reserves with the cash requirements of developing the future strategy. The Trustees formally review the continuing appropriateness of the reserves policy on a regular basis.
Investment Policy
Due to a significant legacy and a few large donations , T he Fountain Centre’s investment strategy was revised at the end of 2019 to manage these funds appropriately. These funds have been set aside to cover the ongoing costs of posts and their associated services currently covered by grants, which, with termination dates, may possibly not be renewed. The Fountain Centre board felt it was appropriate to set these funds aside due to concerns regarding accessing future grants, thereby ensuring continuity around these posts and the value they add to patient support.
In 2019 an initial amount of £200,000 was earmarked to be drip-fed into three funds under a Standard Life wrap, which was completed in 2020. A later decision was made in 2021 to invest a further £300,000 and to modify the investment policy so that we could be assured that there was no direct exposure of the charity to the tobacco industry, resulting in investments in the Quilter Charities Fund and two new funds under the Standard Life wrap.
Risk Review
The Trustees have assessed the major risks to which the Charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.
External risks to funding have been diminished by the diversification of the sources of fundraising and the establishment of a reserves policy. Internal risks are minimised by the procedures for authorisation, before commitment and payment of all transactions and the policy of bringing forward all major projects for the approval of the Trustees and the annual operating costs budget before financial commitment is made.
Policies are reviewed on a regular basis.
Status
The organisation is a charitable company limited by guarantee and registered as a charity on 26 October 2001.
Members of the charitable company guarantee to contribute an amount not exceeding £10 to the assets of the charitable company in the event of a winding up. At 31 December 2021, the number of members was 10 (2020 – 8) with the total of guarantees of £100 (2020 - £80).
The company was established under a Memorandum of Association which sets out the objects and powers of the charitable company and is governed under its Articles of Association. New Trustees are appointed by the unanimous agreement of the Board with the appointments ratified at the next General Meeting.
Members of the Management Committee
The Trustees, who are also the directors for the purpose of company law, and who served during the year were:
The Trustees are directors for the purpose of company law and trustees for the purpose of charity law. The Trustees who served during the year and up to the date of the report are set out above.
The Directors, together with the Treasurer and the Head of Fountain Centre, are responsible for the operational management of the company and for the financial and other controls, procedures and risk assessments to ensure proper husbandry of resources.
The board of Trustees meet on a regular basis to consider and review the charity’s activities, general progress and current financial position. Decisions are then made on matters such as the investment of the charity’s funds and the level of reserves appropriate to each fund in order to meet their objectives.
The Trustees' r eport was approved by the Board of Trustees.
I report to the Trustees on my examination of the financial statements of The Fountain Centre (the Charity) for the year ended 31 December 2021.
As the Trustees of the Charity (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act).
Having satisfied myself that the financial statements of the Charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the Charity’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act) . In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
Since the Charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of , which is one of the listed bodies.
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
accounting records were not kept in respect of the Charity as required by section 386 of the 2006 Act; or
the financial statements do not accord with those records; or
the financial statements do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or
the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
Charitable activities
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
Charitable activities
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
The Fountain Centre is a private company limited by guarantee incorporated in England and Wales. The registered office is St Luke's Cancer Centre, Royal Surrey County Hospital, Egerton Road, Guildford, Surrey, GU2 7XX.
The accounts have been prepared in accordance with the Charity's governing document, the Companies Act 2006 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (as amended for accounting periods commencing from 1 January 2016). The Charity is a Public Benefit Entity as defined by FRS 102.
The Charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.
The financial statements are prepared in sterling , which is the functional currency of the Charity . Monetary a mounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
At the time of approving the financial statements, the Trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. Thus the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
Unrestricted funds are donations and other incoming resources receivable or generated for the objects of the charity without further specified purpose and are available as general funds. All income is included when receivable.
Designated funds are unrestricted funds earmarked by the trustees for particular purposes.
Restricted funds are to be used for specific purposes as laid down by the donor. Expenditure which meets these criteria is charged to the fund, together with a fair allocation of management and support costs.
Voluntary income is received by way of donations and gifts and is included in full in the Statement of Financial Activities when receivable. The value of services provided by volunteers has not been included.
Gift aid and discretionary trust fund distribution tax credits are recognised with the income to which they relate.
Legacies are treated as received when funds are notified as receivable. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably, and the charity has been notified of the executor's intention to make a distribution.
Income from government and other grants whether capital grants or revenue grants is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.
Resources expended are recognised in the period in which they are incurred. Resources expended include attributable VAT which cannot be recovered.
Governance costs represent the general running of the charity and which are not in respect of the direct management and costs of generating funds and the day to day delivery of the main objectives.
Support costs are directly attributed to the activity to which they relate.
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities .
Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year . Transaction costs are expensed as incurred.
A subsidiary is an entity controlled by the Charity. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
The Charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the Charity 's balance sheet when the Charity becomes party to the contractual provisions of the instrument.
Debtors are measured at their transaction value less any impairment losses. They are measured at their recoverable amounts. Cash at bank and in hand are basic financial assets and include deposits held at call with banks, other short-term liquid investments with maturities of three months or less.
Creditors are measured at transaction price and recognised when the charity has a present obligation resulting from a past event and the obligation can be measured or estimated reliably (usually the invoice price).
Financial liabilities are derecognised when the Charity ’s contractual obligations expire or are discharged or cancelled.
Covenants
In a covenant with the Royal Surrey County Hospital National Health Trust dated 21 February 2003 the Fountain Centre agreed to gift the cost of the new extension to the Hospital and in exchange the Fountain Centre will be permitted to use the whole area – including that under the covenant dated 19 July 2002 and the new extension. Subsequent two-year extensions to the initial ten-year licence have been agreed until replaced by a new Rolling Agreement with annual review taking effect from 1 February 2020. The agreement was renewed for a further 12 months from March 2022.
d esignated
Unrestricted fund donations include grants of £Nil (2020: £Nil). Restricted fund donations include grants of £122,893 (2020: £111,266).
As at 31 December 2020 the charity had accrued £103,066 for gift aid receivable on a specific donation. On receipt of the supporting documentation to the donation, gift aid did not apply to all of the receipt. As such, there was an overaccrual of gift aid receivable of £63,885 which was reversed in the year to 31 December 2021.
Charitable activities
Fundraising
Advice, Information and Centre costs (see note)
Therapy and other direct costs
Advice, information and centre costs relate to a contribution to Royal Surrey County Hospital salaries.
General
Governance costs includes payments to the independent examiner of £ 2,400 (2020 - £ 2,400 ) for the examination of the accounts .
The average monthly number of employees during the year was:
The company, being a registered charity, is exempt from corporation tax on its charitable activities.
Fountain Centre Services Limited is a wholly owned subsidiary of The Fountain Centre. The company is a private company limited by shares and incorporated in England. Its registered office is The Fountain Centre, Royal Surrey County Hospital, Egerton Road, Guildford GU2 7XX. It provides therapy services to cancer patients and their carers at other hospitals.
The Fountain Centre has not prepared consolidated accounts in accordance with the exemption permitted by FRS102 as the total income of Fountain Centre Services Limited is below the consolidation threshold. Separate financial statements are prepared presenting the information of the charity as an individual undertaking.
The investment in the subsidiary is shown at the initial cost of the shares of £100, the called-up share capital. The subsidiary company has traded since 1 February 2016. In 2021 a donation of £11,050 (2020: £Nil) was received by the parent from the subsidiary.
|
20 21 |
20 20 |
|
£ |
£ |
Capital and Reserves |
|
|
Called up share capital |
100 |
100 |
Profit and loss reserve |
6,967 |
4,083 |
|
7,067 |
4,183 |
Net Assets |
|
|
Assets |
8,844 |
4,343 |
Liabilities |
(1,777) |
(160) |
Net Assets |
7,067 |
4,183 |
|
|
|
Profit and Loss Account |
|
|
Sales |
22,435 |
10,133 |
Direct costs |
(15,035) |
(6,004) |
Administrative costs |
(4,516) |
(16,071) |
Net Profit/(Loss) |
2,884 |
(11,941) |
|
|
|
Investments in subsidiaries are stated at cost.
General
Designated
Restricted
General
Designated
Restricted
Development Fund
The development fund was established from general funds in 2012 for the future development of the Fountain Centre. Expenditure in the amount of £4,000 was incurred in 2021 (2020: £4,000).
Garden Project Fund
The project fund was set up to design and construct a garden for use by cancer patients and their carers in an area at the side of St Luke’s Cancer Centre entrance and leading to the Fountain Centre. The balance of the fund is available for maintenance and improvements to the garden. There was no expenditure in 2021.
Art Project
There was no expenditure in 2021.
Hascombe Oncology Support Fund
This was set up to provide assistance to young people with cancer.
Debra Stappard Fund
The purpose of the Fund is to look after and maintain the Debra Stappard Room in the Royal Surrey County Hospital in accordance with the original establishment of the room by the Debra Stappard Cancer Trust, which has now been wound up. The donation of £10,000 in 2004 by the trust to the company has been set aside to allow such future maintenance costs to be met.
Outreach Unit Fund
This was established from unrestricted general funds to prepare for the expected need for additional space to meet the rising demand for cancer treatment care. There are building plans for the St Lukes’ Cancer Care unit within the RSCH which include positive changes for the Fountain Centre. There remains uncertainty around the situation post COVID19 and how best to provide our services.
The RSCH chemotherapy bus was launched in February 2020 and the Fountain Centre provided services for a short period before COVID 19 lockdown. Service resumed in May 2020 at a reduced level than expected and as a result the decision was made to terminate the contract in February 2021. We continue to consider the need for other premises.
Positive Health Programme
The Research project is a Positive Health Programme initiative which takes a holistic view of the health of the participants to enable them to make significant lifestyle changes. It promotes the value of preventative measures aimed at the prevention of cancer or its recurrence. Participation is entirely voluntary and open to both patients who have completed treatment and to carers. It has initially been funded by a donation of £12,600 from the West Surrey Health Authority in 2001 with further funding received in 2009.
Brain Tumour Support Group
The fund was established in January 2013 for the provision of staff training and equipment to improve the treatment of skin cancer and brain tumours. The fund received donations of £Nil (2020 - £Nil) in 2021 and had outgoings of £Nil (2020 - £204).
Teenage and Young Adult Support Group
The support group was set up as a result of a new service provided by the Royal Surrey Hospital for 16 to 24-year-old cancer patients. Funds are raised by the group and used mainly for social events.
Family Support Services Fund
A children’s counsellor was recruited in March 2017 to support children under 18 of parents with cancer. A National Lottery grant funds two full-time counsellors to meet the demand for this service. The grant totals £ 401,831 over five years, ending in September 2022, with £ 75,643 being received in 202 1 (20 20 : £ 73,266 ). Prior to that the fund was supported by Waverley CCG.
Luigi Francescon Trust
The Trust, who had provided funding in 2019 to provide a new building for children’s counselling, provided funds to finance the development of online services launched during the pandemic and to offset the salary costs of those staff who were not redeployed in the Royal Surrey County Hospital.
In 2021, they invested in Fountain Centre services further by funding an Occupational Therapist , Benefits Advisor and additional Complementary Therapy hours for three years.
Fountain Centre Services Limited, a wholly owned subsidiary of The Fountain Centre, made a charitable donation totalling £11,050 to the charity during the year (2020: £Nil).