The government is retrospectively reviewing a £9m donation to the Royal Marsden Cancer Charity after auditors raised concerns that the grant had not been approved.
An external auditor of the Royal Marsden NHS Foundation Trust called the decision to donate £9m to its linked charity without the Treasury’s approval “a significant weakness in the trust’s governance arrangements”.
According to the NHS trust’s recently filed accounts, the donation was granted in March alongside £200,000 in gift aid from its wholly-owned subsidiary, RM Medicines Limited.
The auditor raised an issue with the donation due to the Treasury’s guidance on managing public money which recommends the department approve all significant spending of public sector funds.
Following the concerns raised, the NHS trust has retrospectively requested the approval of the Treasury for the donation.
A spokesperson from the Department of Health and Social Care said NHS trusts are required to seek approval ahead of time and that the government is considering whether it will retrospectively grant approval.
Donation made ‘in good faith’
The London-based hospital trust’s accounts state that it made the £9m donation to its linked charity after seeking legal advice.
“The trust entered into the transaction in good faith without seeking approval from HM Treasury, following legal advice and an understanding that other trusts had entered similar transactions”, it reads.
The NHS trust said it had discussed the donation with NHS England after the auditor’s concerns were raised. NHS England did not respond to a request for comment.
RMC Charity, which raises money to support Royal Marsden Hospital, has yet to publish its accounts for the year ending March 2023.
Its latest financial accounts for the year ending March 2022 show the charity had a total income of £31.2m, including no donation from the NHS trust.
A spokesperson for RMC Charity said: “The Royal Marsden NHS Foundation Trust made a £9m donation to The Royal Marsden Cancer Charity, following legal advice and an understanding that other trusts had entered similar transactions. The donation was reviewed by the Trust’s auditors who suggested that retrospective approval be applied for from HM Treasury, which the Trust has subsequently completed.
“The Royal Marsden Cancer Charity received an unqualified assessment of their 2022/23 annual report and accounts from their auditors.”
Editor's note 26.10.23: This article has been edited to include a comment from the RMC Charity.
