Presentmr Mike Evans, Non-Executive Director (In the Chair)

HIGHLAND NHS BOARD

PresentMr Mike Evans, Non-Executive Director (In the Chair)

Dr Andrew Evennett, Non-Executive Director

Mr Nick Kenton, Director of Finance

Mr Adam Palmer, Employee Director (from 10.15am)

MrsAnn Pascoe, Non-Executive Director

In AttendanceMr Iain Addison, Head of Area Accounting

Mrs Kelly Dallas, Endowment Support Officer

Mr Brian Mitchell, Board Committee Administrator

1WELCOME, APOLOGIES AND DECLARATION OF INTERESTS

Apologies for absence were received from Graham Crerar, Myra Duncan, Michael Foxley, Heidi May, Elaine Wilkinson and Lyn Wormald.

Members were asked to consider whether they had an interest to declare in relation to any Item on the Agenda for this meeting. The following interests were declared:

• All Committee Members – NHS Board Non-Executive Director.

2MINUTE OF MEETING HELD ON 19 JANUARY 2015

TheMinute of the Meeting held on 19 January 2015 was Approved.

3MATTERS ARISING

3.1Purchase of Mattresses

At their meeting held on 29 September 2014 the Committee had requested additional information in relation to the purchase of mattresses from the West Highland Budget Fund. Mrs Dallas advised that the purchase had been stated as being required to enable additional supply for use in the community.

Mr Evans stated all new applications were required to include a statement indicating the reason as to why spend was considered to be outwith Exchequer funded expenditure and requested this information be provided to members before the spend in question is agreed.

The Committee Agreed the relevant supporting information be provided to the next meeting.

3.2Investment Restrictions on Arms Manufacturers

At their meeting held on 19 January 2015 the Committee agreed to seek clarification from Adam & Co on the current position and the potential impact of restrictions on investment in arms manufacturers, and ask them to develop a proposal as to the way forward for consideration. The Committee also remitted to Mr Addison to contact those NHS Boards that had specifically excluded all investment in arms manufacturers with a view to discussing their approach and identifying any learning points.

Mr Addison advised guidance had been received on possible wording for inclusion within the NHS Highland Investment Policy along with an associated questionnaire for Trustees which would help determine the level of involvement in arms by an organisation that may be considered acceptable for investment purposes. Questionnaire feedback would provide Investment Brokers with clear direction on this area. It was reported that the Church of England had adopted an approach that restricted investment to companies with 10% or less direct involvement in arms manufacture. There was agreement that adopting this approach would provide the moral comfort that members were looking to provide.

After discussion, the Committee Agreed to direct Adam & Coto adopt a strategy restricting future investment to companies with 10% or less direct involvement in arms manufacture.

3.3Management of Endowment Funds Post Integration, Argyll and Bute

Mr Addison advised national guidance relating to integration did not include reference to Endowment Funds. Future reporting detail may be changed to reflect new arrangements. The Chair referred to aspects relating to publicity and promotion of Endowment Funds to existing/potential donors and suggested this be discussed with the Communications Team.

The Committeeso Agreed.

4INVESTMENT FUNDS

4.1Portfolio Valuation as at 31 March 2015

There had been tabled a report indicating that as at 31 March 2015the value of NHS Highland’s Endowment Funds Portfolio stood at £8.047 million. The graphs included in the report illustrated changes in the Portfolio valuation since March 2008. Members sought information on the percentage income return received from investments. Mr Kenton also sought clarification in relation to the baseline graphic representation of FTSE100 percentage changes in value and what this indicated.

The Committee:

• Noted the current position.
• Agreed clarification of the points raised in discussion be provided at the next meeting.

5APPLICATIONS

5.1Non-Core Learning and Development Activity

There had been circulated an application seeking funding in the sum of £50,000 for Non-Core Learning and Development activity in 2015/2016. The application included a request that consideration be given to an increase in funding in order to close the gap between application totals and allocation amounts. There had also been circulated detail of funding allocations made in 2014/2015, along with statements from funding recipients as to how some of this resource was utilised. It was confirmed that applications for resource were considered in line with the current Study Leave Policy.

The Committee Agreed to initially allocate £50,000 for Non-Core Learning in 2015/2016, with consideration to be given to providing additional resource as part of the overall scope of budget allocations for 2015/16 to be discussed later on the Agenda.

5.2St Vincent’s Hospital, Kingussie

There had been circulated an application seeking funding in the sum of £27530.40 for the purpose of improvement work to the male and female toilets on the Gynack Ward at St Vincent’s Hospital, Kingussie. It was noted the large Specific Fund in question was specifically for work on this building and that overall plans for spend had been sought for some time. There was concern the application had not been made on the revised application form that had been introduced and that supporting documentation was not comprehensive.

After discussion, the Committee otherwise Agreed to Approve the application.

6FINANCIAL REPORTS

6.1Financial Position to 28 February 2015

There had been circulated Financial Report providing a summary of the position in relation to Restricted and Unrestricted Funds as at 28 February 2015. During discussion some technical accounting issues were clarified and it was confirmed that progress continued to be made with reducing the overall number of individual Funds. In relation to the Fund A&BAKI30 Kintyre Dialysis Unit it was confirmed that this related to a large, externally raised donation in relation to which an application to spend was expected in early course.

6.2Inactive Funds Position Statement at 28 February 2015

There had been circulated update report detailing those Specific Funds where little, or no, activity had been evidenced in the previous two year period and outlining responses to requests for indication of associated spend proposals. There was also an indication of those Funds closed since 1 December 2014.

6.3Items of expenditure over £5,000 to 28 February 2015

There had been circulated report detailing expenditure from Endowment Funds in excess of £5,000 to 28 February 2015.

6.4Donations received over £5,000 to 28 February 2015

There had been circulated report detailing a number of donations over £5,000 received to 28 February 2015.

The CommitteeNoted the report.

The Committee adjourned at 11.10am and reconvened at 11.20am.

7BUDGETS 2015/2016

Mr I Addison spoke to the circulated report proposing that the distribution to Budget Funds for 2015/2016 remain at £180,000. Members were reminded that the decision previously taken to allocate resource to the New Craigs Greenspace project would have an impact on both the overall Capital base and Committee Discretionary Fund for 2015/16. The Committee had agreed to £12.5k of Committee Discretionary Fund being allocated to this project in both 2014/15 and 2015/16. There was noted a 2014/2015 year end underspend of £25,438.40 in relation to the Committee Discretionary Fund.

It was recommended that the basis of re-apportioning Funds in Patient Areas be the same as that adopted for 2014/2015, involving a 50% historic proportion and 50% to compensate for the lack of availability of Specific Funds. There was discussion as to the options available to the Committee in terms of allocations and there was agreement as to the desire of members to provide a Committee Discretionary Fund in 2015/16. The Chair subsequently proposed that the 2015/16 Discretionary Fund be set at £25,000, with £12,500 of that total being allocated to the New Craigs Greenspace Project as previously agreed. The remaining sum of £80,500 would then be allocated to the Operational Units on the basis originally outlined.

The Committee:

• Agreed that Budget Funds for 2015/2016 be set at £180,000.
• Agreed the distribution principles for Budget Funds as perOption B subject to £25,000 being allocated to the Committee Discretionary Fund.
• Agreed £12,500 of the Discretionary Fund in 2015/16 be allocated to the New Craigs Greenspace project.
• Agreed Discretionary Fund underspend in 2014/15 of £25,000 be allocated to the New Craigs Greenspace project.
• Agreed there be no additional allocation of resource for Non-Core Learning in 2015/16.

8ANY OTHER COMPETENT BUSINESS

8.1 New Craigs Greenspace Project

There was discussion in relation to this project in terms of the opportunity to raise awareness of the value offered and contribution made by Endowment Funds, this having been discussed on a number of previous occasions.

The Committee Agreed that Mr D Jenkins be invited to the next meeting to provide an update on the project, including relevant awareness raising activity.

8.2 Potential Development of Café Facilities, Outpatients, RaigmoreHospital

On the point raised by Dr Evennett, it was confirmed that financial support from Endowment Funds for any proposed development could include consideration of relevant Public Health issues and provision of healthy food options etc.

The Committee so Noted.

9DATE OF NEXT MEETING

The next scheduled meeting of the Committeewill be held on 6 July 2015 at 10.00am in the Ante Room, Assynt House.

The meeting closed at 12.00am

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