Welcome

Contents:

1. THE CHARITY
2. ORGANISATION
3. CHARITABLE ACTIVITIES
4. GRANT MAKING
5. PROPERTY
6. MANAGEMENT DEVELOPMENTS DURING 2002/03
7. STATEMENT OF FINACIAL ACTIVITIES
8. BALANCE SHEET

Annual Report

The Hospital of God at Greatham

Trustees Annual Report made under the Accounting and Reporting of Charites: Statement of Recommended Practice 2005

1. Reference and Administrative Details of the Charity, its Trustees and Advisers

a) The charity is the Hospital of God at Greatham also known as Greatham Hospital.

b) The charity registration number is 228571.

c) The address of the principal office is:

The Estate Office

Greatham Hall

Greatham

Hartlepool

TS25 2HS

d) The names of the charity Trustees on the date this report was approved (13 th June 2007) are:

Mr John Allen

Mr Stephen Croft

Mr Malcolm Dale

The Venerable Ian Jagger

Miss Muriel Jones

The Venerable Geoff Miller

Mrs Sophia Mitchell

Mr Charles Porter (Vice Chair)

Mrs Judyth Jacqueline Thomas (Chairman)

Mr Barry Winter

• One other person, The Venerable Stephen Conway, served as Trustees in the year 1st November 2005 to 31 st October 2006.

• The Director (chief executive and clerk to the trustees) is Mr David Granath.

g) The names and addresses of other relevant organisations are:

Auditors: William Fortune & Son, Chartered Accountants, Collingwood House, Hartlepool, TS24 7EN

Banker: Barclays Bank PLC, Stockton Business Centre, The Tees Group (North), P O Box 7, Stockton-on-Tees, TS18 1AH

Investment Manager, JP Morgan Private Wealth Management Ltd, 125 London Wall, London, EC2Y 5AJ

Solicitor, Archers Law LLP, Lakeside House, Kingfisher Way, Stockton-on-Tees, TS18 3NB

Project Architect, Pearce Bottomley Architects, The Priory, Aberford, Leeds, LS25 3DW

Pension Scheme Adviser, Barnett Waddingham, West Riding House, 67 Albion Street, Leeds, LS1 5AA

2. Structure, Governance and Management

• The charity was founded in 1273 by Robert de Stichell, Bishop of

Durham and was re founded by King James 1 in 1610.

• The present charity governing document is the Scheme of the Charity Commission dated 27 th June 2002.

• There are 8 co-opted Trustees and they are elected by the existing Trustees at a special meeting as vacancies arise and in accordance with the needs of the charity. Trustees are generally recruited through personal contacts with existing Trustees, external advertising having proved less effective. There is a one year trial period for new co-opted Trustees. Each co-opted Trustee may serve for 2 periods of five years.

There are 3 ex – officio Trustees. the Archdeacons of Durham and Northumberland and the Bishop of Durham. The Archdeacons take up the role of Trustee by virtue of their position and hold office for as long as they remain in post. The Bishop of Durham holds office for as long as he remains in his post. He may and historically has nominated someone to act on his behalf for a 5 year period although this nomination is terminated if the Bishop ceases to hold office.

• The Trustees are required to elect a Chairman of their meetings at the first meeting of each calendar year.

• As part of their induction andtraining new Trustees receive the following documents:

The Trustee Handbook

The latest set of audited accounts

The scheme of the charity

The charity business plan

The budget for the current financial year

The Trustee code of conduct

The Trustee declaration of interests

Relevant Charity Commission publications

In addition new Trustees may meet with the Chairman and Director for a discussion about the aims of the charity, its strategies, current operations and key pressure points.

The board of Trustees meets 6 times each year and is responsible for establishing structures for the proper governance and management of the charity and the development of the strategy of the charity in accordance with its objects.

The Trustees establish sub committees as necessary and at the time of writing the following committees are in place:

• Finance and Property Committee
• Grants Committee
• Building Project Committee

The day to day running of the charity and the exercise of executive responsibility is delegated to the Director and his management team. The charity management team which consists of the Home Manager, Accountant/bookeeper, Property Manager, Head Gardener, Secretary and Chaplain meets monthly.

g) The Trustees have conducted a review of the major risks to which the charity is exposed. A risk register has been established and is updated annually. Control systems have been put in place to mitigate such risks. The Director reports to Trustees on any new risks that might arise during the course of the year.

h) The charity is not part of a formal network of other charities. It does however have contractual and working relationships with the local authority for the provision of residential care services and Supporting People services. In addition it also has working relationships with the local primary care trust and other social care providers and charities with similar aims.

i) There is a relationship with a local charity the Waddington Street Centre in Durham. The Hospital of God provides a house that is managed by Waddington Street Centre as a halfway house for people recovering from mental illness.

The Hospital of God manages the Fox Almshouses in Norton on behalf of the Fox Almshouses trustees.

3. Objectives and Activities

• The objects of the charity as set out in the governing document are:

• The provision of care or housing accommodation for beneficiaries who are defined as “poor persons of good character”.
• Grants not exceeding £5,000 in any year for parochial purposes in Greatham
• The relief of persons in need, hardship or distress by the making of grants or the provision of services.

These objects are achieved through the provision of residential care for older people, the provision of almshouses and associated services for older people and the making of grants to other charities.

• The main objectives of the charity in 2005/06 were:

• To complete the work on the new care home, Stichell House, and transfer the service in the old care home to the new facility.
• To continue to provide residential care in the new facility in accordance with recognised good practice, all regulatory requirements and in a way that promotes the independence and well-being of residents.
• To convert the old care home into 15 new almshouses for older people with associated support facilities and in so doing promote independence and well-being within a housing setting.
• To continue to provide good quality almshouses to beneficiaries of the charity.
• To operate the grant making scheme in order to address social need within Hospital of God grant making criteria in the wider north east.
• To explore further directions for the development of the charity when the new services are established in Greatham.
• To maintain the good financial health of the charity.

c) The charity’s strategies for achieving these objectives are:

• A recognition of the continuing and increasing need for residential care and housing for older people and a strategy of investment in this area of work through the building of Stichell House and the conversion of the old home into new almshouses.
• A view amongst Trustees that the charity has the potential, given its knowledge base and infrastructure, to further develop its services in the ancient diocese of Durhamand a strategic decision in the light of this to explore further developments in residential care, housing and mental health services for older people.
• A strategy of grant making to spread the benefits of the charity throughout the north east with a policy of providing support to charities that work with more marginalized groups.
• Supporting these activities there have been significant improvements in financial reporting and improvements in income levels from investment properties and charitable activities.
• All service should meet their direct operating costs thus reducing reliance upon investment income.

• The grant making policy of the charity is to apply funding in a strategic manner in order to make as much impact as possible on the alleviation of need, hardship and distress.

Applications are assessed against the following criteria:

• Whether it enhances the ability of the individual or the community to achieve self determination.
• Whether the work can be seen to benefit directly people who are disadvantaged.
• The evidence of the need for the project for which a grant is sought.
• The ability of the organisation to deliver the service.

4. Achievements and Performance in 2005/2006

a) Review of performance achieved against objectives set.

5. Financial Review

• The Trustees have examined the main risks to the charity and have established a policy whereby if all sources of income ceased at once the charity could operates for a period of three months. Reserves of £250,000 are held for this purpose.

At 31 st October 2006 the unrestricted free reserves were £165,063.

b) The principal funding sources of the charity during the year were:

Endowment fund £605,081 41% of income

Fees for residential care £351,274 24% of income

Almshouse maintenance contributions £164,737 11% of income

Rents £348,338 24% of income

These funding sources have supported the key objectives of the charity in the following ways:

• There was an expenditure of £596,746 on the Hospital and an income of £351,274, the deficit of £245,472 was met from charitable funds.
• There was an expenditure of £228,919 on almshouses and an income of £164,737 the deficit of £64,182 was met from charitable funds.
• There was an expenditure of £106,136 on grants and this was all met from the charities own resources.

c) The investment policy of the charity in relation to the endowment is to earn an agreed level of income to be spent on charitable operations while at the same time at least preserving the capital value of the portfolio and accepting a moderate level of risk.

The charity’s investment managers have been instructed that the charity has an ethical investment policy. This encourages investment in companies that can demonstrate success in business and financial matters, that adopt responsible employment practices, are conscientious in relation to corporate governance and environmental matters and are sensitive to the communities in which they operate.

The charity does not invest in any company that supplies armaments or promotes pornography. Investment is also avoided in any company a major part of whose business involves gambling, tobacco, alcohol or non offensive military equipment. Investment is also avoided in newspaper publishing.

• Plans for Future Periods