APPROVED

NHS Grampian (NHSG)

Minute of Endowment Committee Meeting

held on Monday 1 September 2014 at 11.30am

in the Conference Room, Summerfield House

Present

Mr Raymond Bisset (Chair), Non-Executive Board Member

Cllr Stewart Cree, Non-Executive Board Member

Ms Sharon Duncan, Employee Director

Mr Alan Gray, Director of Finance

Mrs Laura Gray, Board Secretary/Director of Corporate Communications

Prof Mike Greaves, Non-Executive Board Member

In Attendance

Mr Garry Kidd, Assistant Director of Finance

Mrs Sheena Lonchay, Operational Manager for NHSG Charities

Mr Terry Mackie, Non-Executive Board Member

Cllr Anne Robertson, Non-Executive Board Member

Ms Tracey Leete, Minuting Secretary

Item / Subject / Action
1. / Apologies
Dr Roelf Dijkhuizen, Medical Director
Cllr Bill Howatson, Chairman
Mr Mike Scott (Vice Chair), Non-Executive Board Member
2. / Declaration of Interest
Prof Greaves declared an interest in Quarriers, a Scottish Charity which is dedicated to helping children, families and adults overcome adversity.
3. / Minute of Meeting held on 11 June 2014
The minute of the above meeting was approved by the Committee.
4. / Matters Arising
4.1 / Action Log of 11 June 2014
The Committee reviewed the action log from the previous meeting and highlighted the following items:
11.6.14 – Item 4.1 – Improving Patient Experience
Ms Laura Kluzniak, Corporate Project Manager, to write a report regarding review of Hospedia Services to be considered at November 2014 meeting.
11.6.14 – Item 8.2 – ACC Charitable Trusts
Mr Kidd and Mrs Lonchay have met with the Mental Health Sector General Manager regarding the availability of this funding which is ring fenced for Mental Health Projects; £14k+ of applications have already been received.
Mrs Duncan advised that an application for £6k for upgrading the RCH staff dining room is being submitted to the GAPF meeting in November. The room will become a rest or social area for staff.
Mrs Lonchay to provide an update at the November 2014 meeting.
10.6.14 – Item 9.3 – AMH/RVS Café Refurbishment
Mrs Lonchay has met with both the RVS Scotland Manager and Unit Operational Manager to try to progress project.
Mrs Lonchay will provide a further update at the November meeting.
10.6.14 – Item 9.5 – Therapeutic Roof Garden
Mrs Gray advised of ongoing fundraising including car raffle to be drawn on 16 December 2014. Foyer being handed over to ECC on 12 September 2014. / LK
SD
SL
SL
4.2 / Any other matters arising
None.
5. / Review of PWC Audit Report of NHSG Board Governance
A review meeting was held on 30 July 2014 to discuss the audit findings. A number of recommendations were noted for consideration at the Board Development Day scheduled for 10 September 2014.
It was noted that a number of the recommendations were already routine practice for the Endowment Committee.
The Committee agreed to undertake a review of effectiveness and to consider skills required by members, at the February 2015 meeting. / ALL
6. / Communication Plan
Mrs Lonchay presented a report and action plan to update the Committee on her activities since commencement of her post on 2 June 2014, as requested at the previous meeting.
It was noted that RVS had submitted an application to use some of the funds donated to Endowments for a volunteer project. However, there were issues around the management and support of volunteers which required to be resolved before the application could be considered.
The Committee noted the report and action plan and approved the work streams proposed. / SL
7. / GAPF Endowment Funding
Mrs Duncan presented the report and highlighted the following points:-
·  £3k funds for European Health and Safety Week had been approved in principle.
·  iMac Computer application deferred for further information..
·  Funds sought for upgrading the former RCH staff canteen as a rest room for staff.
The Committee noted the report.
8. / Donations
Donations greater than £1,000 received from 1 May to 31 July 2014.
The Committee noted the report and acknowledged, with thanks, the receipt of recent donations.
9. / Funding requests
9.1 / Expenditure Requests Approved from 1 May to 31 July 2014
The Committee noted the report.
9.2 / Mortuary Update
Mr Kidd advised that an accreditation issue has now been resolved. There has been long-standing approval to spend £125k which was 50%. Scheme is currently on hold as land next to mortuary belongs to the University and they already have plans for the land. Estates and University have already been asked to review due to new death certificate legislation from March 2015.
Prof Greaves advised that the University is sympathetic to NHSG needs and further discussion is required.
Mrs Gray to provide an update at future meeting. / LG
9.3 / UCAN and Robotic Surgery Update
Mr Kidd reported that the Scottish Government has given permission for the clinical service and they will also provide us with money towards the robot itself. £230k has been pledged from Endowment Funds. Dr Manju Patel is lead and meeting appropriate consultants and service managers. Robot will be delivered 2015/16.
Mr Kidd will provide an update at each meeting. / GK
9.4 / Foresterhill Mosque Update
Mrs Gray to liaise with University to determine if funding can be shared. Planning permission has expired. / LG
9.5 / Laparoscopic Equipment for RACH Theatre
Mrs Lonchay to circulate explanation paper which supports application to Committee for approval. / SL
9.6 / Roxburghe House Refurbishment
Mrs Lonchay introduced the request to refurbish Roxburghe House including improvement to shower rooms and patient bathrooms, build new day room and improve work areas and reception.
The Committee raised concern that the building should not be defective when relatively new. Mrs Lonchay clarified that the building was not defective but the request was to enhance patient experience and comfort. Members also queried building capacity which Mrs Lonchay will raise at next meeting with Roxburghe.
The Committee agreed the request for £200k from endowment funds in partnership with Friends of Roxburghe and Macmillan.
10. / Financial Performance Report
Year to date performance
Mr Kidd presented the report.
Overall, the Fund continues to demonstrate a favourable performance with net assets increasing by £1.063m compared to the position reported at 31 March 2014. A full report on investments was given to the Annual General Meeting.
(The minute of that section of the AGM is replicated here for ease of reference)
Mrs Clark from Standard Life Wealth gave an overview of investment performance. The overall market value of investments was valued at £42.6m at 19 August 2014 compared to £42.3m at 6 June 2014 with income for 14/15 forecast at £1.6m, in excess of the agreed target of £1.25m.
To counter variations in the markets, SLW has overweighted overseas equities and underweighted UK equities and bonds, compared to the benchmark. There was discussion about whether the benchmark should be revised to reflect the current position. However, Mrs Clark clarified that the benchmark is long-term and would be reviewed if unachievable or if NHSG was uncomfortable with SLW’s strategy. Mr Gray confirmed that NHSG reviews the plan with SLW on a quarterly basis and that a risk assessment was completed with SLW following the June meeting.
The Committee also raised concern regarding the potential risk with overseas assets. Mrs Clark gave reassurance that there was only 15% overseas investment compared to 85% UK, and overseas equities were of no more risk than UK equities.
The Committee confirmed that current investment restrictions are to remain.
The Committee members noted the investment performance and expressed their thanks to Mrs Clark and the SLW team.
The Committee noted the report.
11. / Review of Risk Control Plan
Investments (Items 4 and 5) had been reviewed at the last meeting and Items 6 (Fraudulent Use of Endowment Funding) and 7 (Lack of disaster recovery planning for the Endowments Finance System) were considered.
The Committee agreed that both these risks should continue to be assessed as “Green”.
12. / Update to NHSG Board
The Committee agreed that the following points would be of interest to Board members :-
·  Review of PwC Audit Report of NHSG Board Governance and actions.
·  Greenspace
·  Communication Plan
·  East End Site Visit
·  Trustees’ attendance at AGM – Mr Gray to raise at Board Development Session. / AG
13. / AOCB
Wildcat – Re-starting Hearts in Rural Scotland Paper for information
Mrs Lonchay introduced the Project Proposal Document for information from Claire Maitland of The Sandpiper Trust, which is expected to commence in April 2015.
Formal bid to be submitted at November 2014 meeting. / SL
14. / Date of Next Meeting
Monday 24 November 2014 at 10.00am-12.30pm in the Seminar Room, Summerfield House.

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