1. Role of Trustee of Tayside NHS Board Endowment Fund Board of Trustees Colin J Masson Director of Finance – Operational Unit Lead Officer

2. Background and Context Members of NHS Board Appointed Trustees ex officiis of Endowment Fund Endowment Fund separate from Exchequer Funds Trustee role separate from NHS Board Member role

3. Endowment Fund Recognised by OSCR as Scottish Charity No Trust Deed or Constitution NHS (Scotland) Act 1978 Not accountable to OSCR, but Acknowledge OSCR reflects current public thinking

4. Purpose of Endowment Fund Support any service which is NHS Board’s function to arrange, administer or provide Objectives and Activities include patients, staff, equipment, research, pioneering services end environmental Trustees responsible for ensuring funds under their stewardship are safeguarded and administered accordingly

5. Trustees Responsibilities Impartiality – public or private interests Declaration of interests – minuted Personal liability – breach of duty Not covered by CNORIS Duty to consult each other Right to be consulted Right to participate in decision taking Effective decision may be taken by majority

6. Endowment Advisory Group Remit determined by BOT Assist Trustees with stewardship 8 Non-Executive Members Consider expenditure proposals Consider fund raising proposals Monitor I&E v Budget approved by BOT Business Reports to BOT Annual Report to BOT

7. Endowment Fund Value Unrestricted Fund £11m Unrealised Gains £7m Restricted Funds (>500)£11m TOTAL£29m Of which: –with Investment Manager£28m –Cash etc£1m

8. Income Profile

9. Unrestricted Fund >99% income from investments and rent Review investment performance, and Performance of Investment Manager Advised by WM Company Adherence to asset categories Performance v indexes Portfolio : Income : Recurring spend Reserves Policy

10. Restricted Funds c80% from donations / legacies Expressed wishes of donors –Patients –Staff –Equipment –Research –Service / Department

11. Restricted Funds Respect expressed wishes of donors Timely use of donations Comply with Objectives and Activities Discussion with donors Not core service provision Impact on exchequer revenue

12. Future Developments Possible consolidation in Board accounts Effective 2013/14 – IAS27 Definition of ‘Control’ Potential reputational risk – donors Steering Group reviewing position Review mid year 2012/13 IAS27 may be superseded in Jan 2013 Change in definition of ‘Control’