APPROVED
NHS Grampian (NHSG)
Minute of Endowment Committee Meeting
Wednesday 15 December 2010, 1000-1300
Conference Room, Summerfield House
Present
Mr Raymond Bisset (Chair), Non-Executive Board Member
Cllr Lee Bell, Non-Executive Board Member
Mr Mike Scott, Non-Executive Board Member
Mr Gordon Stephen, Employee Director
Mr Alan Gall, Finance Director
Mrs Laura Gray, Director of Corporate Comms and Board Secretary
In Attendance
Mr Derek Angus, Treasury Accountant
Mr Mike Connor/Ms Carol Clark, Newton Investment Management Ltd - Items 4.2/4.3
Mr Andrew Fowlie, General Manager Moray CHP, via vidcon, - Item 6
Anne-Marie Meconi, Minuting Secretary
Item / Subject / Action /1. / Apologies
Apologies were received from:
Dr David Cameron, Chairman of NHSG
Prof Neva Haites, Non-Executive Board Member
Garry Kidd, Acting Assistant Director of Finance
Dr Roelf Dijkhuizen, Medical Director
2. / Minute of Meeting held on 8 September 2010
Minute approved after the following amendment:
Mrs L Gray to be moved to "Present" list from the "In Attendance".
The Minutes of the above meeting were approved.
3. / Matters Arising
3.1 / Review of Action Sheet
Mr Bisset went through the Action Sheet and it was duly updated.
8.9.10 - Item 13.6 - Rock Challenge 2011: It was agreed that Endowments would make up the shortfall to the maximum of £7,500 for the requested costs.
Items to come back to the next meeting were:
23.6.08 - Item 4 - Evaluation and Workshop including Workplan and Constitution: Recruitment of a member of public to the Committee was dependent on the outcome of the Patients Rights Bill. However the Endowment Fund Constitution only permits four Non-Executive members and this already applies.
15.12.08 - Item 12 - Position of Board Members as Endowment Trustees: Andrew Jackson to provide an updated report. Still ongoing.
14.12.09 - Item 6 - Donations: Board Seminar day in January 2011 identified as a good opportunity to thank donors through press coverage.
8.9.10 - Item 5 - Grampian Hospitals Art Trust (GHAT): Positive responses had been received. Calculation of funds to be made on balances held at end of March 2011 for payment to be made in the early part of 2011/12.
5.10.09 - Item 7 - Future of 403 King Street: The sale of the property is still being processed through the respective solicitors. It is expected that the sale will be finalised in January 2011.
8.9.10 - Item 12.3 - General Endowments: Review of two nursing salaries being met from Endowments. A decision to be made on approving the funding at the meeting after the January 2011 Endowment Workshop. Legal advice to be sought from the CLO on the legality of funding these posts.
8.9.10 - Item 14 - Update of UCAN Development: In June 2007 a contribution of £302,250 was approved to the UCAN unit, over a five year period, a condition of the approval was to receive a formal annual report from UCAN.
The Committee noted the Action Sheet.
4. / Investments
4.1 / Investment Portfolio at 30 September 2010
Mr Angus gave a brief update to the Committee on the portfolio at 30 September 2010.
The Committee noted the report.
4.2 / Investment Portfolio at 30 September 2010
The Committee noted the report.
4.3 / Update from Newton Investment Management on Investments
Mr Mike Connor and Ms Carol Clark joined the meeting.
Mr Connor gave an account of the status of the investment portfolio and an overall view of the status of the world's current financial climate.
Newtons provided an update of the portfolio valuation as at 14 December 2010 at the meeting. It was encouraging that there was an increase between the book cost and market values:
Book cost: £29,977,978
Market value: £33,986,562
Returns from the stock market had been positive in the last three month period.
Mr Gall asked how our portfolio compared with other charities and were we investing in the right areas ie emerging markets. MrConnor said it was performing similar to others given our investment objectives and benchmark.
4.4 / Review of Investment Benchmark
The benchmark is used for the Endowments Fund, tailored to reflect the objectives and long-term requirements of the fund and based on the performance of the financial markets. The portfolio is required this financial year to generate a minimum income of £1.3m per annum. Due to the current financial climate, Newtons see this benchmark as a constraint on the management of the portfolio.
Carol Clark and Mike Connor left the meeting.
The benchmark to be discussed at the 14 January 2011 Endowment Workshop. / DA
5. / Review of NHS Lothian Office Endowments with the Office Scottish Charity Regulator (OSCR)
Mr Bisset went over the report.
OSCR had recently completed a review of the status of Lothian Health Board Endowment Fund as a registered charity.
A number of issues had arisen fro this review which had implications for NHSG. Namely, the requirement for trustees to ensure that the utilisation of the endowment funds is to the benefit of the public and good governance supports this.
Mr Bisset had discussed this with Mr Angus and we appear to have more governance in place than Lothian especially on the approval of expenditure.
An Endowment Workshop had been set up for 14 January 2011 to review:
Recommendations from the NHS Lothian review and compare with NHSG's to see if any changes need to be made on governance arrangements.
All Committee members to be invited to the Workshop including Andrew Jackson.
The Committee noted the report. / DA
DA
6. / Moray Sciences Life Project
Andrew Fowlie joined the meeting via vidcon
Funding was in place to build the centre subject to a contribution from NHSG Board which was supported by the Board at the October 2010 meeting.
Mr Angus had checked with Mr Andrew Jackson, Legal Adviser, who indicated that the endowment contribution towards the capital cost of construction of £700K was legally acceptable.
£200K - Catherine Williamson Fund
£500K – Headquarters General Endowment Fund
Andrew Fowlie left the meeting.
The Committee approved the request.
7. / Equipment for Transitional Medical Research
Mr Angus gave an update for Dr Dijkhuizen. The original application has been deferred and a new one will be provided in due course with the source of funding from the Cameron Executry
Two further projects to be funded from the Cameron Executry would also be coming to the Committee for approval in due course.
The Committee noted the position on the request for equipment.
8. / GAPF Endowment Funding: Approved expenditure requests from 1 September-30 November 2010
Mr Stephen went over the list of applications. He said that there had been a tightening up of criteria for best use of the monies available.
The Committee noted the report.
9 / Donations: Greater than £1,000 received from 1 August-30 November 2010
The Committee again mentioned the generosity of donations from members of the public.
The Committee noted the report.
10 / Summary Financial Report as at 31 October 2010
The Committee noted the new format of the financial report which provided more relevant information.
Mr Angus went through the various elements of the report.
The fund continues to demonstrate improved performance with the market value of investments increasing by a further £1.2m in the three month period to 31 October 2010.
Cllr Bell asked if there was any way of knowing when the research projects come to an end. MrAngus said that £300K per annum was provided to the R&D Committee on annual projects and this was on-going.
Mr Angus indicated the present variance on the retirement awards and that it was unlikely to stay within budget for the year.
The Committee agreed the report.
11 / Funding Requests
11.1 / Expenditure Requests Approved from 1 August - 30 November 2010
Mr Gall asked if his limit for signing off funding requests should be amended. Explanatory documentation is attached to the endowment request forms which helps him to decide whether to sign them off or not. The Committee got reassurance with Mr Gall signing off the requests.
Two nurse posts - After four years of continuous temporary employment contractors become full members of staff with full rights ie redundancy. They would then be redeployed and NHSG would pay their salaries.
Cllr Bell said that we should review the employment laws to ensure that the Committee is covered on funding posts from Endowments and this needs to be monitored and looked at from a legal perspective.
Mr Bisset thought it would be a good idea if the endowment request form was updated to take into account the employment issues.
Director of Finance (Mr Gall) limit for signing off endowment requests to be discussed at the Endowment Workshop on 14 January 2011.
Endowment funding requests forms to be looked at, at the 14 January Endowment Workshop.
Mr Angus to look into the research employment history and see if there are problems with continuous funding for these posts up to 4 years.
The Committee noted the report. / DA
DA
DA
11.2 / Forecasting Donated Buildings and Equipment
Mr Angus said that this was being reviewed on an on-going basis. Return to be submitted to the exchequer.
The Committee noted the update.
11.3 / Obstetrics and Gynaecology Research Nurse
The Committee considered the research post requested for a Gynae/Oncology study for one year.
The Committee approved the request.
11.4 / Salary of Research Doctor
The Committee considered the request for a contribution towards the salary costs of Senior Clinical Researcher for one year. Although not indicated on the expenditure form, Mr Angus indicated that Prof Alison MacLeod had approved this post.
The Committee approved the request.
12 / Update of Staff Physiotherapy Service
Mr Bisset said a report had been received from Lynn Morrison, Lead Physiotherapist. The Committee was asked to approve the two recommendations:
1. that funding be continued to support the delivery of a staff physiotherapy service for NHSG employees.
2. that the Committee consider whether they can give a commitment to support the service for a period greater than one year which would aid the retention of our experienced staff and assist with longer term planning of the service.
The Committee were keen for some clarification from the Regulator on funding this service.
Mr Gall to speak with the Regulator and feedback to Mr Angus.
Mr Angus to inform Lynn Morrison that the Committee still to confirm any funding for 2011/12 until advice on the use of Endowments received from the Regulator. However if approved, they cannot grant funding other than on an annual basis.
The Committee noted the report. / AG
DA
13 / Draft General Endowment Budget 2011/12
The Committee is asked to consider the proposed general endowment operating budgets for 2011/12.
The Committee deferred approval of the budget as there are numerous elements to be discussed at the Endowment Workshop on 14 January 2011 which may have an effect on the funding available and on what expenditure has to be approved.
Endowment Committee Workshop
After the meeting, the seminar was arranged for the afternoon of 14January 2011, 1300-1500, Conference Room, Summerfield House. A meeting of the Committee would follow this workshop / DA
14 / March 2011 Board Endowment Seminar
The Committee's approval is sought to participate in the Board seminar development session for all Board members and a draft endowment seminar programme for discussion.
The three main elements of the Endowment Seminar will be undertaken as follows:
Board Members Responsibility – Andrew Jackson
Current Arrangements – Garry Kidd
Risk Management – Alan Gall
The Committee approved the Seminar Programme.
15 / Review of Risk Control Plan
Mr Bisset asked the Committee for their comments on the plan.
Item 3 - "Green" to be replaced with "Amber" until certain issues have been cleared with CLO re exchequer funding.
The Committee noted the report. / DA
16 / AOCB
Mr Bisset circulated a copy of a letter received from GHAT for the Committee's information.
16.1 / Report to NHSG February Board
- Update on the Moray Life Sciences Project
- OSCR and implications for next year's budget
- Endowment Seminar at March Board meeting
- Valuation of fund
Date of Next Meeting
Friday 25 March 2011, 1000-1230, Conference Room, Summerfield House
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