Download Minute 19 January 2015

HIGHLAND NHS BOARD
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Beechwood Park
Inverness IV2 3BW
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MINUTE of MEETING of the
ENDOWMENT FUNDS COMMITTEE
Ante Room, Assynt House, Inverness
19 January 2015 – 10.00 am
Present
Mr Mike Evans, Non-Executive Director (In the Chair)
Mr Graham Crerar, Non-Executive Director (Teleconference)
Mrs Gillian McCreath, Non-Executive Director
In Attendance
Mr Iain Addison, Head of Area Accounting
Mrs Kelly Dallas, Endowment Support Officer
Miss Irene Robertson, Board Committee Administrator
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WELCOME, APOLOGIES AND DECLARATION OF INTERESTS
Apologies for absence were received from Adam Palmer, Nick Kenton and Lyn Wormald.
Members were asked to consider whether they had an interest to declare in relation to any
Item on the Agenda for this meeting. The following interests were declared:

All Members – NHS Board Non-Executive Director.
The Committee Noted the declarations of interest.
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MINUTE OF MEETING HELD ON 29 SEPTEMBER 2014
The Minute of the Meeting held on 29 September 2014 was Approved.
The Chair referred to the discussion that had taken place on restrictions on investments
when the Committee had been advised that while there would be no direct investment in
arms manufacturers at this time, there would likely be historic investment in the defence
sector.
The Committee agreed to seek clarification from Adam & Co, our investment
brokers on the current position in relation to linkages with companies involved in arms
manufacture, the level of our investments in those companies and the impact on our portfolio
of restrictions on armaments investment, and to ask them to develop a proposal as to the
way forward. The Committee also suggested an approach be made to NHSScotland,
however Iain Addison advised there was no specific national guidance on this issue and that
it was for local Board Trustees to decide on areas for investment. It was understood that two
NHS Boards had specifically excluded all investment in arms manufacturers. Mr Addison
undertook to contact these Boards to discuss the approach they had taken.
The Committee:


Agreed to seek clarification from Adam & Co on the current position and the impact
of restrictions on investment in arms manufacturers, and to ask them to develop a
proposal as to the way forward for the Committee’s consideration.
Remitted to Mr Addison to contact those Boards that had specifically excluded all
investment in arms manufacturers with a view to discussing their approach and
identifying any learning points.
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APPLICATIONS
3.1
Urology Stone Laser System
Kelly Dallas spoke to the circulated Application explaining there were two sources of funding
- a donation of £38,896 from the Raigmore Hospital League of Friends who had raised
money specifically for the purchase of this equipment, and £6,318 from Urology Endowment
Funds.
Having considered the business case, the Committee agreed that the Application could be
approved.
The Committee Agreed to Approve the Application.
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INVESTMENT FUNDS
4.1
Current Position
There had been tabled a report indicating that as at 31 December 2014 the value of NHS
Highland’s Endowment Funds Portfolio stood at £8.206 million. The graphs included in the
report illustrated changes in the Portfolio valuation since March 2008. The Committee was
pleased to note that the overall trend showed positive movement against a fluctuating FTSE
100 and reinforced the value of engaging experienced investment brokers. The position
continued to be monitored on a regular basis to ensure sufficient liquid funds were
maintained to cover expenditure commitments.
In response to a request from the Chair, Iain Addison undertook to amend the report to
include details of monies in/out along with expenditure in order to more readily identify the
growth in investment.
The Committee Noted the current position.
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FINANCIAL REPORTS
5.1
Financial Position to 30 November 2014
There had been circulated Financial Report providing a summary of the position in relation to
Restricted and Unrestricted Funds as at 30 November 2014. Progress continued to be made
with reducing the overall number of individual Funds.
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The Committee Noted the financial position.
5.2
Inactive Funds Position Statement at 30 November 2014
There had been circulated update report from which the Committee noted an improving
position. Work was ongoing to develop plans for using the money in order that these Funds
could be closed.
The Committee Noted progress with reducing the number of Inactive Funds.
Items of expenditure over £5,000 to 30 November 2014
5.3
There had been circulated report detailing expenditure from Endowment Funds in excess of
£5,000 to 30 November 2014. On the point raised regarding potential implications for the
management of endowment funds following integration in Argyll & Bute, Iain Addison
undertook to confirm the position in relation to the financial instructions for the new Argyll &
Bute Health and Care Partnership.
The Committee:


Noted the report.
Agreed to seek clarification of the position in relation to the management of
endowment funds following integration in Argyll & Bute.
Donations received over £5,000 to 30 November 2014
5.4
There had been circulated report detailing donations over £5,000 received to 30 November
2014.
The Committee Noted the report.
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RECOMMENDATIONS FOR ENDOWMENT FUND FOR NHS HIGHLAND
The Committee at its meeting on 29 September 2014 had considered national guidance
which recommended best practice for NHS endowment funds. The key recommendations
related to:
(1)
(2)
(3)
(4)
the adoption of a Charter covering endowment funds
the expenditure that may be authorised from within endowments
the development of a policy on fundraising
the development of operating procedures for endowments.
The Committee agreed to consider recommendations (1) and (2) at today’s meeting and
would review the other two recommendations at its next meeting in April 2015.
(1)
NHS Highland Endowment Fund Charter
There had been circulated for the Committee’s consideration draft NHS Highland
Endowment Fund Charter. After discussion the Committee agreed that the Charter be
adopted. The Committee recommended that a separate meeting of Trustees be held every
two months, independently of the NHS Board meeting, and that the Endowment Funds
Committee become a sub committee of the Trustees’ Group. The Committee further
recommended that the Chair of the Trustees Group be elected from within the body of the
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Trustees. It was remitted to Iain Addison to liaise with Kenny Oliver, Board Secretary, in
relation to the standing orders for meetings of the Trustees and refine them as required.
The Committee:




Agreed that the Charter be adopted.
Recommended that a separate meeting of Trustees be held every two months,
independently of the NHS Board meeting. The Chair of the Trustees Group to be
elected from within the Trustees.
Recommended that the Endowment Funds Committee become a sub committee of
the Trustees Group.
Remitted to Iain Addison, in collaboration with the Board Secretary, to review the
standing orders for meetings of the Trustees.
(2) Approval of Endowment Fund Expenditure
NHS Boards had raised a number of queries relating to endowment funds and transactions
expended from endowments on which advice had been sought from the Central Legal Office.
A paper had been circulated detailing the questions submitted by Boards, the responses
from the Central Legal Office and the current position in Highland. Discussion followed
during which the following points were made.

The Committee agreed that the use of specific staff funds for staff parties was not
acceptable. (Question 1).

The Committee felt that the use of endowment funds for functions or events that
could be deemed to include a team building element or which could improve staff
wellbeing (for example, a team meeting dinner or Christmas dinner for staff), should
continue and agreed £5 per head was the maximum from specific or budget funds.
(Question 2).

It was confirmed that long service awards were no longer funded from endowment
funds. (Question 3).

The Committee agreed that the current maximum allowance of £5 from specific or
budget funds for each year of service towards a retirement tea/function was
reasonable and should continue. (Question 7).

Physiotherapy services and sports and social activities were not currently funded
from endowments (Questions 8 and 9). However, acknowledging the importance of
promoting a healthy workforce the Committee may revisit this issue at a future date.

Endowment funding for complementary therapy services for stress related conditions
was a matter for individual charities. The Committee agreed it would wish to retain
that flexibility to allow it to consider requests on a case by case basis. (Question 10).

Contributions towards gym and swimming pool membership had been made from
endowments in the past. The Committee agreed that it would consider each case on
its merits, taking cognisance of potential benefits to the health and wellbeing of staff.
Further discussion to take place as to whether unrestricted funding should be used
for this purpose. The Committee also considered the inclusion of ‘Improving staff
health and wellbeing’ in the aims of the Charity. (Question 11)

The Committee confirmed payments towards non-core training and further education
of staff were acceptable. (Question 12).
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
The Committee confirmed that payments for ‘patient benefits’ were acceptable
provided they were of benefit to all patients and were not for items that should be
funded from core NHS resources. (Question 13).

NHS Highland does not run a Staff Lottery. It was noted that at national level staff
lotteries are considered acceptable. (Question 14).

NHS Highland Endowment Fund does not accept monies that are not compatible with
charitable purposes. (Question 15).

The Committee agreed it was permissible for lecture fees paid to an NHS employee
(eg a consultant) to be assigned to endowments funds rather than treated as Board
income. (Question 16).

NHS Highland Endowment Fund does not hold any non-charitable funds. (Question
17).
The Committee Agreed the types of expenditure allowable within NHS Highland
Endowment Fund, as detailed above.
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VALEDICTORY
The Chair advised that Gillian McCreath would complete her term of office as a NonExecutive Director of NHS Highland on 31 January 2015. On behalf of the Trustees he
wished to thank Mrs McCreath for her valuable contribution and input to the work of the
Endowment Funds Committee and wished her every success in her future endeavours.
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DATE OF NEXT MEETING
The next scheduled meeting of the Committee will be held on 13 April 2015 at 10.00am in
the Ante Room, Assynt House.
The meeting closed at 11.30 am
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