KCHC Annual Report and Accounts 2024-25 Spreads - Flipbook - Page 35
2024/25 Financial Review
B) Unrestricted designated funds
C) Restricted funds
As of March 31, 2025, £12.7 million (2024: £14.8 million)
was held in designated funds, allocated for specific
purposes as advised by Designated Fund Advisors.
At March 31, 2025, restricted funds were valued at
£2.9 million (2024: £3.8 million). These funds comply
with donor requirements and are held until suitable
spending plans are approved – the name and value
of each fund above £100,000 is provided in Note 2.1.
For these funds, we will comply with the specific
requirements of donors and spend their donations on
the restricted purpose specified.
£8.2m (2024: £9.0m) was held in designated funds set
aside for named clinical specialties or hospital wards,
where the donor has indicated they wish the funds to
be used for that purpose. The Trustees expect these
funds to be spent within a reasonable timeframe – there
is a process in place for closing funds where there is no
further planned activity and transferring any remaining
balance back to general funds.
Spending takes place with advice from ‘Designated Fund
Advisors’, subject to compliance with the Charity’s policy
and procedures. Funds are available for spending in full,
with no reserves figure set.
Designated Fund Advisors are encouraged to fundraise to
replenish funds for future developments.
A further £2.4m (2024: £3.4m) is designated as strategic
grant funds. We wish to develop our capability to support
the Foundation Trust in delivering major strategic and
transformation projects. These projects typically have
an extended lead time and require time and resources
before progressing for approval and fundraising. The
value of the reserve is based on the Charity’s mediumterm grant-making plan, with the expectation that
further funds would be raised from fundraising appeals
to fund a series of strategic projects. The value of this
fund reflects the amount required over the next three
years to support the Charity’s strategy and allow regular
and sustained investment in growing the Charity and
increasing its ability to support its beneficiaries.
A further fund to support the pump priming of pipeline
capital projects was established in 2018/19, and an initial
sum of £1m was transferred. Capital projects, by their
nature, require a large amount of funding to be raised
over a relatively short period. The trustees believe that
in order to support King’s progress in projects currently
at the planning stage, funds should be set aside for
this purpose. The fund was not drawn down during the
year, although several capital projects are now being
evaluated.
A further £1.2m (2024: £nil) is designated as Investment
Revaluation Reserve. During the year an investment
revaluation reserve of £2.3m was set up, of which £1.1m
investment revaluation losses during the year were
offset.
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