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MINUTE of MEETING of the ENDOWMENT FUNDS COMMITTEE
Ante Room, Assynt House, Inverness / 11 January 2010–11.35 am

PresentMr Okain McLennan, Non Executive Director (In the Chair)

Mr Bill Brackenridge, Non Executive Director

Mr Ray Stewart, Employee Director

Also PresentMrs Gillian McCreath, Non-Executive Director

In AttendanceMr Iain Addison, Head of Area Accounting

Mr Malcolm Iredale, Director of Finance

Mr Brian Mitchell, Board Committee Administrator

1APOLOGIES

Apologies for absence were received from Mr T Cowan-Martin and Mr I Gibson.

2MINUTE OF MEETING HELD ON 6 JULY 2009

The Committee Approved the Minute of the Meeting held on 2 November 2009.

3MATTERS ARISING

3.1Patient Self Management Programme

Mr I Addisonspoke to the circulated document outlining the five year vision for a Patient Self Management Programme(PSMP), in relation to which it had previously been agreed that outstanding resource be utilised to prime a bid to LTCAS to develop a structured partnership approach with Local Authority and Voluntary Agencies. Mr I Addison confirmed that approximately £12,000 was being utilised and no further resource was being requested. It was stated that further information relating to the proposal would be welcomed.

The Committee:

  • Noted the circulated vision document.
  • Agreed that a report on future action, including timescales and reference to partner agency responsibilities, be requested for submission to the next meeting.

4APPLICATIONSPREVIOUSLY APPROVED

There were no applications for consideration at this meeting.

5INVESTMENT FUNDS

5.1Investment Valuation as at 31 December 2009

There had been circulated report outlining the portfolio value for NHS Highland Endowment Funds at 31 December 2009, this being £7.971m. The report indicated that the value of the portfolio showed positive movement toward previous levels. It was advised that appropriate resource for payment to NHS Highland for the period April to December 2009, in the sum of £600k, would be drawn from the portfolio in January 2010 and it was considered that the existing cash holding of £270k would be sufficient for to cover cash requirements in the forthcoming six month period. It was also advised that the opportunity would be taken to restructure the portfolio in line with the previous decision of the Committee increase investment in lower-risk fixed interest stocks and reduce investment in equities to a maximum of 70%. Mr Addison advised that an initial meeting had been held with Mr Mark Ivory, the new fund manager within Adam & Co.

The Committee:

  • Noted the position in relation to Investment Funds.
  • Agreed that Mr Mark Ivory, be invited to attend the meeting of the Committee to be held on 5 July 2010.

6FINANCIAL REPORTS

6.1Financial Position to 30 November 2009

There had been circulated Financial Report outlining that the balance of the Unrestricted Funds as at 30 November was £3,634,803.20 and that for 2009/10 Budget Funds, some £246,763.65 remained unspent. During discussion Mr I Addison advised that there had recently been greater moves made toward utilisation of Specific Funds, with Plans for utilisation of these now in place. Mr McLennan emphasised that Fund holders managed these on behalf of the NHS Board and that these should be utilised as opposed to the sums involved being protected. It was suggested that there be held a workshop event, for General/Fund Managers where significant resource existed, to encourage use of these Funds through examples of beneficial utilisation elsewhere. Mr B Brackenridge stated that beneficial use of Funds could help to raise public awareness of the impact donations can make and this in turn may lead to higher donation levels. It was also suggested that awareness of this issue be raised at the NHS Highland Annual Event to be held on May 2010.

The Committee:

  • Noted the financial position.
  • Agreed a proposal for a summer 2010 workshop event for managers of significant Funds be submitted to the next meeting.

7ENDOWMENT BUDGET FUNDS 2010/2011

Mr I Addison spoke to the circulated report proposing that the distribution to Budget Funds for 2010/2011 remain at £180,000. There were three options outlined, for the basis of re-apportioning Funds in Patient Areas, and it was advised that for 2009/2010 this had been on the basis of 50% historic proportion and 50% to compensate for the lack of availability of Specific Funds. For Non-Patient areas, the level of unused funds in the Corporate and Facilities budgets were considered sufficient and as such no further apportionment was recommended. For Other Areas the Non-Core Learning and Valuing Service Awards levels would remain as per 2009/2010, there had been circulated a request that had been received for the Committee to consider an increase in the Research and Development allocation, and the Committee Discretionary Fund would comprise the balance of the original £180,000 figure. The unused balance from the 2009/2010 Discretionary Fund would be returned to the General Fund.

During discussion, there was reference to outstanding balances within Patient Area Budget Funds and the view was expressedthat future allocations should be directed to those areas with a proven ability to use resources and derive associated benefit, such as South east Highland CHP. Budget Fund managers had not been requested to provide spending Plans to date. As per previous discussion, managers required to be given the message that Funds should be utilised given this was the intent of those who made the donation. Spending Plans should be requested, as had been the case for the larger Restricted Funds. With regard to the request for increased funding for Research and Development, the view was expressed that further background information would be required to enable an informed decision to be taken, such as revenue generation and direct benefit accrual to the Highland area.

The Committee:

  • Agreed that Budget Funds for 2010/2011 be set at £180,000.
  • Agreed that Patient Area Budget Managers be requested to provide Spending Plans to the next meeting.
  • Agreed that the South East Highland CHP Budget be set at £12,200.
  • Agreed that further information be sought in relation to Non-Core Learning and Development activity.
  • Agreed that Dr Ken Proctor be invited to address the Committee on the request for increased funding in relation to Research and Development.
  • Agreed there be no further allocation to Corporate and Facilities budgets in 2010/2011.
  • Agreed that the Valuing Service Awards budget be set at £20,000.
  • Agreed the balance of funds be allocated to the Committee Discretionary Budget.
  • Agreed that the unused balance of the Committee Discretionary Budget in 2009/2010 be returned to the General Fund.

8ANY OTHER COMPETENT BUSINESS

There were no matters raised under this Item.

9DATE OF NEXT MEETING

The next meeting of the Committeewill be held on Monday12 April 2010 at 10.00am in the Ante Room, Assynt House.

The meeting closed at 12.40pm

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