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2021-03-31-accounts

Registered number: 02601495 (England and Wales) Charity number: 1002832

WESSEX CHILDREN’S HOSPICE TRUST (A company limited by guarantee)

TRUSTEES’ REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

WESSEX CHILDREN’S HOSPICE TRUST (A company limited by guarantee)

CONTENTS

CONTENTS
Page
Reference and administrative details of the Charity, its Trustees and advisors 1
Chairman’s Statement 2 - 3
Trustees report 4 - 16
Independent auditor’s report on the financial statements 17 - 20
Consolidated statement of financial activities 21
Consolidated balance sheet 22
Company balance sheet 23
Consolidated statement of cash flows 24
Notes to the financial statements 25 - 48

WESSEX CHILDREN’S HOSPICE TRUST (A company limited by guarantee)

REFERENCE & ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISORS FOR THE YEAR ENDED 31 MARCH 2021

Company Number 02601495 (England and Wales)
Charity number 1002832
Registered office Naomi House, Stockbridge Road, Sutton Scotney, Winchester, SO21 3JE
Trustees Trustees, who are also directors under company law, who served during the year
and up to the date of this report were as follows:
Mrs Faith Ramsay Chair
Mr Julian Cracknell Vice Chair (appointed 8 July 2021)
Mr Steve Radjen
Dr Michael Miller
Mr Julian Walker
Mrs Sam Nicolson Treasurer
Mr Shaun Southern
Mrs Alison Richardson (resigned 10 December 2020)
Mr Robin Hassan
Mr Rob Simpson
Mrs Nicola Redfern
Ms Lucinda Smith (appointed 26 January 2021)
Ms Julie Dawes (appointed 26 January 2021)
Ms Jane Ferguson (appointed 26 January 2021)
Ms Helen Burrows
Key Management
Personnel Mr Mark Smith Chief Executive Officer
Mrs Lesley Brook Director of Care/Deputy CEO
Ms Claire Imhofe Director of Finance/Secretary
(resigned 31 August 2020)
Mrs Katie Lumsden Director of Finance (appointed 1
February 2021)
Ms June Morton Director of Human Resources
Mr Paul Morgan Director of Fundraising &
Communications
Bankers Royal Bank of Scotland Plc Barclay’s Bank Plc
Drummond House, 1 Redheughs PO Box 612, Ocean Way, SO14 2ZP
Avenue, Edinburgh EH12 9JN
Solicitors Blake Morgan Gardner Leader
New Kings Court, Tollgate White Hart House
Chandlers Ford SO23 9DA 24 Market Place, Newbury RG14 5BA
Independent Auditor Crowe U.K. LLP
Aquis House
49-51 Blagrave Street
Reading
Berkshire
RG1 1P

Page 1

WESSEX CHILDREN’S HOSPICE TRUST (A company limited by guarantee)

CHAIRMAN’S STATEMENT FOR THE YEAR ENDED 31 MARCH 2021

A Message from the Chair

I am pleased to present the Annual Report and Accounts for Wessex Children’s Hospice Trust known as Naomi House and Jacksplace, Hospices for children and young adults who live with life-limiting and life-threatening conditions and their families.

The last year has been one of the most challenging we have all faced as individuals, families, communities, organisations and as a nation due to the Coronavirus pandemic. For the children, young people and their families that Naomi House & Jacksplace are here to support, the year has been particularly hard with many families and young people facing lengthy periods of shielding and isolation. Due to Government restrictions throughout lockdown periods, we were forced to cease our planned respite stays for families although remained open for end of life care, symptom management, step down care from hospital and supportive and emergency respite care for families in most need of support.

Our Family Support Team has been busier than ever providing remote support and counselling services to families by phone, email and Zoom meetings. Our Play and Activities Team have also been supporting families by arranging many different creative play packs to send to families and by also arranging play activities and sessions online and through some community visits when permitted. Through the increased frequency and volume of contact, we have been able to identify those families who may need further support and have offered supportive or emergency respite stays.

In the early days of the pandemic, we supported our local NHS organisations too by providing the opportunity for patients to be discharged to Jacksplace from hospital therefore freeing NHS beds when in the height of the first wave of the pandemic. Since then, we have continued to be on standby to assist our NHS colleagues and have helped children, young people and their families avoid hospital admissions by enabling them to receive care here at the hospices when possible to do so.

Amid all of the uncertainty and changes to our short-term plans as a result of COVID-19, our new strategy for the period 2020-2025 was launched in April, the underlying themes of which still remain. Our strategic aims are to provide outstanding services to the families we support; to be financially sustainable for the foreseeable future; and to be an integral part of the local healthcare environment. I am pleased to report that we have made progress in all these areas which will be covered in more depth later in this report.

At the beginning of the year, our financial forecast looked incredibly challenging, with all of our Retail network closing and the majority of our fundraising activities and events either postponed or cancelled. As the year progressed however, we were able to make use of all the support made available by HM Government as a result of COVID-19 including the Retail Grant Scheme and Rate Relief, the Job Retention Scheme and in particular, grants from NHSE through Hospice UK. The NHSE awarded funding to allow the hospice to make available bed capacity and community support from April 2020 to July 2020 to provide support to people with complex needs in the context of the COVID-19 situation and to provide bed capacity and community support from November 2020 to March 2021 for the same purpose.

Our Fundraising Team and Retail colleagues also rose to the challenges presented throughout the year by adapting their plans and activities to continue generating funds wherever possible and by keeping in touch with donors individually and in groups through many different virtual meetings and events. Our Shops have performed well when they have been able to open and have been well supported through significant volumes of donated stock. Although income has been significantly lower than in a normal year, income generation has performed ahead of expectation and combined with close monitoring of expenditure, we have finished the year in a strong financial position producing a surplus for the year. We recognise that there are still challenging times ahead as our fundraised income recovers however,

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WESSEXCHILDREN'S HOSPICE TRUST {A company Ilmlted by guarantsg) CHAIRMAN'S STATEMENT {CONTINUEDI FOR THE YEAR ENDED 31 MARCH 2021 we ar• well placed to SUFPOrt a￿1v￿•S With the aim of fetuming our income generation lo pre COVID- 19 levels. As we look forward to a yearfull of cyJmlsm beyond COVID-19, we will double our efforts lo re-e8tabli8h a full range of services for families lo use and continue lo develop our 8ims and ambrtions for better access lo specialist paedialric palliative care service5 for the famil￿$ who need them. We have made progre8s Ihls year by working wkh our nel9hbouring children's ho$pice$ lo explore ways of working together towards this aim and are also pleased lo be an active member of the Hampshire and Isle of Wight Hospice Collaborative Group. This Group will work togelhef wth bcal NHS and 31alulory bodies wth the aim of 8UPPOrting and contributing to improved servi￿9 to all lamilles who need palllalive core oGros¥ the South Central Region. Evoryone al Naomi House & Jacksplace 58 dedicated lo providing excelLgnl $ervice$ lo the children, young adutt8 and their familie8, who need us despite the financial and operational challenges we are all facing as a result of COVIO-19. Al this lime therefore, I would like lo tske the opportunity lo thank all our staff and volunteers for thelr hard work and dedication lo making Naomi 4ou$è & Jacksplace the wonderful placo it is. They havg faced the challenge$ of COVID.19 with courage. resilience and adaplabllity and a focus on making ¥ure that we do the utmost 10 8UPPOrt both those in our immediate care and the wider community. We 8r• only abla to provide the servkeg we do due to the conllnued 8UPPQrt of individuals, groups, tru819 and companies in the community wth the majority of our income coming from voluntsry ¥our¢e$. le9acie8 and through our shops and lottery programme. Therefoie, I would1ike lo thank everyone who ha8 8UPPOrted u8 in the p881, we couldn t do what we ¢Jo. wthoul your generou5 donations. Falth R•m••y Chalr oftho Bo•rd of Trusts•• Page 3

WESSEX CHILDREN’S HOSPICE TRUST (A company limited by guarantee)

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2021

The Trustees are pleased to present their annual report and accounts of the Charity and its subsidiaryf for the year ending 31 March 2021.

The accounts have been prepared in accordance with:

Vision and Mission

OUR VISION

Is that every child, young adult, and their families receive the care services they need, when and where they need them, and for as long as needed.

OUR MISSION (The Charity’s Objectives)

Is to provide high quality care services to children, young adults and their families and through innovation, partnership working, good governance and leadership, to ensure their sustainability for the future.

Underpinning our vision and our mission, are our core values:

We place great reliance on committed staff and volunteers, whether they are caring for children, raising money or providing the essential administration. Living our values will continue to be a strong theme as we ensure that everybody, paid or otherwise, is valued and respected for their contribution to our work.

Governance and Public Benefit

The Trustees hold legal responsibility for setting the strategy of the charity and for ensuring the group complies with the Companies Act, Charities Act and Statement of Recommended Practice. The Trustees delegate the day to day operational management of the charity to the Chief Executive and the Senior Management Team to facilitate the effective delivery of the charity’s aims and objectives and to ensure compliance with all regulatory requirements.

The Trustees have many responsibilities that can be summarised as two overriding objectives:

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WESSEX CHILDREN’S HOSPICE TRUST

(A company limited by guarantee)

TRUSTEES’ REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

As a Board we are confident that, whilst uncertainty remains around income and the continuance of the effects of COVID-19, the immediate and foreseeable future of the organisation is secure.

The aim of Naomi House & Jacksplace, as stated in its vision, clearly sets out who the beneficiaries are, where they are located and what is being offered to those children from 0 years to young adults up to 35 years and their families. It is entirely consistent with the charity’s objective as set out in its governing document, and statement of purpose. Services are delivered free of charge to beneficiaries and are also provided under funded arrangements with Statutory bodies.

The Trustees have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the charity's aims and objectives and in planning its future activities. In particular, the Trustees consider how planned activities will contribute to the aims and objectives that have been set. The core policy of the Trustees is to put families at the centre of our work and to support parents, carers, siblings and other family members, as well as the life-limited children, and young adults.

Structure and Management

The organisation is a charitable company limited by guarantee, incorporated on 15 April 1991.

The company was established under a Memorandum of Association, which established the objects and powers of the charitable company and is governed under its Articles of Association.

The Trust is run by a Board of Trustees, which sets and monitors strategy and policies. The Board delegates authority to deliver the strategy to the Chief Executive and staff. The Board meets quarterly to receive reports of all the principal activities of the Trust. Two special meetings are arranged each year for Trustees to discuss and review the strategy.

In addition, the Trustees have established standing committees, each with its own terms of reference, for Finance Risk & Audit, Fundraising Retail & Marketing, Healthcare Governance, Trust Governance and People & Culture which also incorporates health and safety and remuneration.

Trustees are elected in accordance with the memorandum and articles of association by the Trustee Members of the Trust. There are currently 14 Trustee Members who hold voting rights and 24 Advisory Members, all of whom have liability limited to £10.

In line with best practice and the Charity Governance Code, the Board continuously seeks to enhance the diversity of its skillset. Trustees are recruited following open advertisement, are subject to a rigorous interview, probationary period, and induction to support them in becoming effective members of the Board, working in the best interests of the charity. This includes formal Trustee Training with our professional legal advisors and through online training courses. In the year, we have seen one Trustee step down and three new Trustees joining the board strengthening our clinical expertise and also the crucially important role of parent Trustee to ensure our service users are represented on the board.

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WESSEX CHILDREN’S HOSPICE TRUST (A company limited by guarantee)

TRUSTEES’ REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Strategic Report

The financial year 2020-21 saw the Trust’s activities significantly interrupted by the Coronavirus Pandemic which is outlined later in this report, however we continued to make progress on our strategic objectives during the year. Our new 2020-2025 Strategy was launched at the beginning of the year although was overshadowed by global events. Nevertheless, our strategic direction continued from our previous strategy and so we have managed to make progress in a number of significant areas.

A number of the key objectives set and the progress towards them included;

We have also made progress in our aim to reduce our recurring deficit budget position and have a surplus year end position along with significant unrealised investment gains further strengthening our financial position. The Trustees are confident that with this strong base and continued community support along with our strategy to be an active partner in the development of integrated and collaborative ways of working across the voluntary and statutory organisations, we are well positioned for a sustainable future.

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WESSEX CHILDREN’S HOSPICE TRUST (A company limited by guarantee)

TRUSTEES’ REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Risk Management - Principal risks and uncertainties

A risk register is at the centre of the Trust’s risk management process. It is regularly reviewed by the senior management team and scrutinised by committees for onward presentation and approval by the board. Risk management is inherent in all the charity’s activities and key risks broadly cover patient care, data protection, finance, fundraising, governance and compliance, health and safety and information technology.

The risk assessment process identified the following major risks:

The Trustees have put in place mitigating measures to manage these risks and monitor the likelihood of these risk events occurring. It is felt that the financial and reputational impact on the Trust, has been controlled and minimised. Regular review and updates are managed through the charity’s Risk Register and through review by internal governance committees.

Clinical governance is overseen by the Clinical Committee monthly and Healthcare Governance Committee quarterly. The Fundraising, Retail & Marketing Committee monitors the income streams of the Trust. The Finance, Risk & Audit Committee advises the Board on all finance and risk matters, and makes appropriate recommendations, when required. This includes reviewing the annual accounts and budgets, as well as appraising investment performance. The Governance Committee provides assurance to the Board of Trustees in discharging its responsibility for scrutiny, compliance and probity. The Trust also has an external consultant, on health and safety, which the Trustees receive regular reports from and have this year introduced a new People & Culture Committee.

Care Services Review

As for all providers the 2020/21 year has been challenging. 30 January 2020 saw the World Health Organisation declare an outbreak of Coronavirus as a ‘Public Health Emergency of International Concern’, and a ‘pandemic’ on 11 March 2020. This pandemic declaration shaped the services that we were able to provide to children, young people and their families over the last year, led to new ways of delivering services and also changed the way we raised funds and generated income. Difficult decisions had to be made, often at short notice, due to the ever changing guidance that was being received whilst ensuring that the maintenance of high quality standards throughout was at the centre of gour decision making and actions.

In the early stages of the Pandemic the decision was made to close both hospices to respite services but take a child out of the high risk hospital environment and support them in house whilst a long term placement was sourced. The Trust also agreed to provide a service to adult NHS patients to free up hospital capacity, these patients were no longer requiring acute services and were transferred into Jacksplace to support their ongoing rehabilitation until they were fit for their discharge destination. End of life and emergency referrals continued to be accepted during this time. All adult patients had been discharged by early May and our support in this role was no longer required. At this point services were transferred back to Naomi House to facilitate planned works being undertaken in Jacksplace and

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WESSEX CHILDREN’S HOSPICE TRUST (A company limited by guarantee)

TRUSTEES’ REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

support families who had been identified by us or other healthcare professionals as requiring emergency support.

Throughout the year we have continued to support families at end of life and post death. This has been particularly important to families where siblings and the extended family have had limited access in the hospitals due to COVID-19 restrictions. Our space and facilities have given these families the opportunity to spend some time together and make memories that weren’t possible in other settings.

As usual the staff pulled out all the stops to accommodate family wishes where able, including Christmas in October Naomi House style!

The pandemic has given us the opportunity to review how we deliver some of our services and the Family Support Team have been busier than ever continuing to support people initially via virtual platforms and telephone, moving to socially distanced meetings as and when restrictions allowed. All teams have learnt to be flexible in their contact methods and provide support in ways we would previously not have considered. Additional models of supporting people have also been commenced such as providing play sessions in the community for those not in full time education/college or accessing other services for play community visits.

We now have two established Paediatric Palliative Care Consultants and an Adult Associate Specialist. Their joint working between the hospices and University Hospital Southampton ensures that we have good links with acute services and has enabled us to identify children and young people that would benefit from additional services. This has included step down from hospital following an extended, or traumatic stay, to support transition home or admission to the hospices for symptom management avoiding a hospital admission. Their involvement in planning is likely to shape the future development of the services alongside the clinical management team.

The introduction of a Neuromuscular Clinic, alternate months, at Jacksplace has been very well received by both clinicians and service users. This allows young men with neuromuscular conditions, such as Duchenne Muscular Dystrophy, to be seen by a variety of clinicians in the one setting in one day. Feedback has been very positive and particularly appreciated at this time due to the avoidance of having to attend the hospital setting in such uncertain times.

This year has seen us review our eligibility criteria and develop an eligibility assessment tool that supports us in ensuring that the same criteria for acceptance, or discharge, is applied to all service users.

The integration of two electronic systems, i Want Great Care (iWGC) and Vantage continues. i Want Great Care allows us to collect anonymous feedback from service users and their families to identify where changes and improvements can be made to services. Vantage, a risk management software system, supports the electronic reporting of incidents. Both systems ensure that potential problems can be identified and followed up early and learning cascaded to address any gaps or concerns.

Fundraising, Retail and Marketing Review

The benefit of hindsight is that we can look back on the entirety of the year and see both the individual elements as well as the overall impact of the pandemic on our effectiveness as fundraisers, managers, colleagues and as a team. Like everyone else, the last year brought a raft of challenges and opportunities. The only certainty was at the beginning of the financial year when we had to discard, or place on hold, carefully crafted plans and schedules as we were all called upon to flex and adapt according to the prevailing need or permitted way of working at any one time.

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WESSEX CHILDREN’S HOSPICE TRUST (A company limited by guarantee)

TRUSTEES’ REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Initially, many presumed the impact of the pandemic might possibly stretch out as far as the summer. However, as we continued to evolve and be shaped by the rolling development in knowledge and understanding of what would and would not be possible or permitted, so too our plans and options began to grow as short-term needs adapted to meet the longer-term challenges. Whilst plans may have had to become more fluid, the overriding outcome from the year is that the team collectively needed to remain pragmatic and flexible - adapting to circumstance and maximizing every opportunity that arose.

An early decision in adapting to the impact of COVID was as awareness that the reactive approach that we had adopted in the first few weeks of the pandemic was not sustainable. Our focus needed to become strategic and planned. Plans were quickly improvised so that we could adjust ways of giving for people to give and support as they wanted to.

One of the most visible immediate impacts from Lockdown was on the Retail sales operation. Our retail colleagues stoically wanted to keep trading for as long as possible, but it quickly became clear that what was hoped for and what was practicable or safe was on two entirely separate plains. When lockdowns eased, like other charity retail operations, we saw an increase in the number of goods being donated to our warehouse. It is pleasing to report that we were fortunate that the quality of the goods remained relatively high throughout the period.

A standard part of our fundraising portfolio is the range of challenge and physical events that we offer supporters throughout the year. A refreshed Clarendon Way Walk was planned for 2020 incorporating a night walk. Due to COVID, this element, together with some other planned events had to be postponed. However, the team were focused on delivery of a COVID Safe event and managed to achieve safe delivery of a controlled Clarendon Way Walk in September with 232 participants and over £70,000 raised.

The team were early adopters of the London Marathon alternative event The 2.6 Challenge. We had over 48 people raise £18,000. A series of daily evening gigs throughout Lockdown 1 cumulatively raised over £10,000 for the charity. Each performer generously donated their time and talents and helped lift the spirits of all those who logged in to watch and enjoy the gigs. Other innovations included a variety of virtual events such as the online Mexican Night, our Celebration of Christmas and our Christmas Party all delivered by the team from the hospices using the newfound skills on Zoom. Overall, the learnings of the year spanned several areas including better use of data, increased flexibility in taking events and campaigns to supporters and better use of digital giving channels to empower supporters to give in the ways that suit their lifestyles.

The final major learning of the year was the success of our first direct mail activity for several years. Focused on the practical impact of COVID over the year, our summer and Christmas campaigns highlighted the impact of the pandemic on the services we offer and the children and families we support. Although no one could have expected the year to develop as it has, the fundraising and income generation teams have adapted as required and our supporters have continued to demonstrate the trust, faith, and support for the work of the charity.

Fundraising Statement

The charity employs a team of Fundraisers based at the Hospices in Sutton Scotney. The team are line managed by function and oversee all aspects of income generation for the charity. We also have a retail operation made up of a warehouse, 21 shops, and a mix of paid and volunteer delivery drivers. The team is overseen by the Head of Retail who reports to the Director of Fundraising and Communications. The income for the charity includes voluntary giving from the Community, Retail and an established Lottery operation which is supported by our External Lottery Manager – Starvale Management and Technologies Ltd. During the year our canvassing of new lottery players was subcontracted to Local Fundraising Ltd.

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WESSEX CHILDREN’S HOSPICE TRUST (A company limited by guarantee)

TRUSTEES’ REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Naomi House & Jacksplace is registered with the Fundraising Regulator and carries the Fundraising Regulator Logo on the website as a sign of our ongoing commitment to the principles and aims of that body and sector best practice.

Fundraisers receive regular training and updates to the development of new regulatory changes through a combination of regular team training sessions, 1:1’s and induction training. The Director of Fundraising continues to act as Chair of the regional association of the Chartered Institute of Fundraising and regularly offers the team opportunities to join or take part in free or low-cost training and peer to peer networking sessions. All new fundraisers are encouraged to take the Chartered Institute of Fundraising’s Fundraising Foundation Course.

The Fundraising Management team continually monitor guidance and regulations from the Charity Commission, the Fundraising Regulator and the Gambling Commission. Specifically, we review information relating to GDPR, data protection and the Gambling activities.

In the past year we have not received any suppression requests from the Regulator. All complaints that we receive in relation to income generation activities are reviewed by the Board Sub-Committee responsible for Fundraising Retail and Marketing on a quarterly basis. We received a total of 18 Complaints – all of which were investigated and resolved.

As we have a Lottery, we are alert to the needs of vulnerable people and use the framework from the Gambling Commission and the Code of Fundraising Practice to guide our approach to dealing with any such individual or group. In the retail operation each shop has a manager and assistant who undertake regular training in these areas supported by Relief Managers, our volunteer coordinator and the HR partner. Each shop displays information on contacts for anyone to report concerns.

We provide Third party fundraisers with a fundraising agreement. This sets out expectations in regard of health and safety arrangements together with information for insurance, cash handling etc. We acknowledge donations electronically or by post and provide receipts on controlled stationery for staff involved in cash collections.

Human Resources Review

The year has been dominated by the Pandemic which has had a major impact on the working lives of everyone across the world. At the start on the financial year, we placed over 70 of our staff on furlough as the first national lockdown began. As the year unfolded, we had to furlough more of our staff, hitting the 100 mark at one time with some colleagues from every department being unable to work due to the outbreak. Our criteria has been simple: if your job has temporarily disappeared due to the impact of Coronavirus, we will ask you to accept a period of furlough. No colleague refused to be placed on furlough and once we were able to take advantage of flexi furlough, all but four colleagues accepted these arrangements. Both staff and the managers who have to plan work rotas have demonstrated considerable flexibility during these stressful and uncertain times. We have remained in contact with staff, both working and furloughed, throughout the year with over 50 Trust wide newsletters, Zoom social gatherings and numerous individual calls and e-mails and bulletins from the Chief Executive, Chair of the Board of Trustees and Divisional Heads.

Despite the benefit of the furlough scheme, we have had to declare a small number of roles redundant but we have also been able to successfully redeploy some staff. Recruitment over the last year was very limited and we ended the year with 159 staff (excluding bank staff), 20 fewer than at the start. Notable appointments have been a new Head of Marketing and an internal promotion into the role of Director of Finance.

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WESSEX CHILDREN’S HOSPICE TRUST (A company limited by guarantee)

TRUSTEES’ REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Like most employers, we swiftly moved to a home working arrangement when lockdown was announced. Staff adjusted to this very well and as a result, we have agreed to embrace a “hybrid” model, allowing office based staff to work up to 40% of their time from home by agreement. Our staff survey conducted with our Investors in People partner in August indicated that there was no desire to move to total homeworking and in fact, staff reported that they missed the office atmosphere and the social support they received from their colleagues.

Volunteering was sadly very badly impacted by the pandemic and the restrictions. With all our shops closed for long and repeated periods, and no household mixing allowed, we have had fewer opportunities for our loyal teams of volunteers. Moreover, Shop volunteer numbers have reduced as many of our elderly colleagues have spent the year shielding. At present we have approximately 200 active shop volunteers and are hoping to increase that to 350 in the year ahead. Hospice based volunteering has been more difficult to manage. As a clinical environment we have discouraged nonessential visitors and indeed asked our office staff to work from home where possible. Our office procedures continue to change which means many previous volunteer tasks are no longer required. Our garden and maintenance volunteers have returned to the premises with vigour and we hope to identify more opportunities for our communities to support fundraising initiatives once the current restrictions are finally lifted.

The Pandemic placed further pressure on our finances and the Board of Trustees made a decision to postpone a planned pay increase for 2020-21. Staff salaries were therefore not increased in the financial year, for staff at any level, including the five members of the Senior Management Team (SMT). For reference, the SMT pay is traditionally reviewed annually in March along with all other staff. The Trust aims to offer a competitive salary and compares rates of pay to counterpart level roles from other charities or similar sized organisations. Salary increases for the SMT are approved by the Board. It was agreed to top up furlough pay (from 80% to 100% and to national minimum wage) for a limited period to ease the financial pressure on those colleagues whose roles had been impacted via the pandemic. After a whole year of uncertainty and disruption for our employees, the Trustees agreed a pay award of 1.5%, effective from April 2021.

We have appointed two new clinical Trustees from an open recruitment campaign and we approached a parent of a former service user to join the Board as Parent Trustee.

Financial Review

Despite significant uncertainty at the start of the financial year due to the ongoing pandemic, we have achieved a healthy surplus of £2,745,218 for the year-ending 31 March 2021, much of this surplus £2,233,082 has resulted from good investment performance. Total funds held are £28,734,326 (2020: £25,989,108).

COVID-19 has impacted Naomi House and Jacksplace, as it has the rest of the UK and world. We have been fortunate to receive significant aid from the NHS and government to support our activities throughout the year, enabling us to maintain our income levels to continue to deliver services and ensure a sustainable future.

Total income for the year ending 31 March 2021 amounted to £7,631,096 (2020: £7,516,015).

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WESSEX CHILDREN’S HOSPICE TRUST (A company limited by guarantee)

TRUSTEES’ REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

NHS England have supported our services through the Children’s Hospice Grant Scheme with an annual grant of £602,676 (2020: £414,469). Income from Clinical Commissioning Groups (CCGs) was £416,590 (2020: £731,312) in 2020 we had two children who had extensive long-term stays.

During the year we’ve utilised emergency government funding to mitigate the fall in income due to the pandemic. The NHSE awarded funding to allow the hospices to make available bed capacity and community support from April 2020 to July 2020 to provide support to people with complex needs in the context of the COVID-19 situation and to provide bed capacity and community support from November 2020 to March 2021 for the same purpose.


2020 to March 2021 for the same purpose.
COVID-19 Grants Total £
NHSE Grant(Emergencyand Bed Capacity) £1,203,333
COVID-19 Retail Grants £310,605
Government Job Retention Scheme £880,640
Total COVID-19 Grant Support £2,394,578

On the 1 April 2020 the Trust had a network of 23 shops selling donated goods and a small quantity of bought in goods. The retail network had significant disruption during the year with the imposed local and national lockdown restrictions. Many of our landlords have been supportive and allowed favourable payment terms and, in some cases, a rent reduction. Unfortunately, despite this support we exited our Waterlooville shop in the last quarter of the year and our Hythe shop has closed in Q1 of 2021/22.

Naomi House Children’s Hospice Limited is a wholly owned subsidiary of the Trust. The subsidiary is the agent for the Retail Gift Aid scheme along with carrying out all trading activities. All profits from the trading activities can be gift aided to the Trust, subject to HMRC regulation, benefiting the charity by reducing any corporation tax liability on trading activities.

Shops and merchandising income totalled £613,365 (2020: £2,235,794) this decline demonstrates the impact of COVID-19, a reduction of 73% of income compared to the prior year. Retail Gift Aid claimed from HMRC during the year was £33,848 (2020: £185,016). During the year we continued to utilise Retail Government support including business rate reductions, local restriction support grants and circuit break lockdown grants.

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WESSEX CHILDREN’S HOSPICE TRUST (A company limited by guarantee)

TRUSTEES’ REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Naomi House Children’s Hospice Limited turnover, for the year was £9,080 (2020: £13,846). Income is low due to limited ability to run the Retail Gift Aid Scheme with enforced shop closures for a major portion of the year.

During a year of uncertainty, it was imperative that we worked to increase our efficiency and control our costs. Annual costs for the year totalled £7,118,960 compared to £8,300,475 in 2020, a reduction of 14%.

Investments

The Trust’s investments totalled £12,599,635 as at 31 March 2021. The capital value of the Trust’s investment portfolio increased by £2,233,082 (2020: decrease of £228,998).

The Trust’s investment portfolio is managed by an independent fund manager, Veritas, in accordance with the Trust’s investment policy. As with all investment portfolios this is subject to market conditions. The investment manager’s objectives are “real returns on a rolling 5-year view with an emphasis on capital growth with income”. The performance aim is to outperform UK CPI +3% net of all costs over the medium term (5 years). Despite the global pandemic our portfolio has achieved 59.4% return over a rolling five-year period compared to UK CPI+3% at 25%.

Reserves policy

The purpose of the reserves is to secure the future of our services and our long-term obligation to the children, young people and families we support. Our reserves ensure that we can sustain periods where our income is unpredictable and allows us to absorb our forecast deficit of £448,000 in 2021/22.

It is the opinion of the Trustees that it is prudent that the Naomi House and Jacksplace services, require ideally reserves of 18 months, to ensure the continuity of care, in the event of a large variation of income. The balance at the 31 March 2021, of £4,486,000 for the Naomi House Designated Fund and £4,029,000 for the Jacksplace Designated Fund, represents a coverage of 18 months of care, and fundraising costs.

Page 13

WESSEX CHILDREN’S HOSPICE TRUST (A company limited by guarantee)

TRUSTEES’ REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Our unrestricted reserves total £21,739,735, of which £14,653,174 has been designated for specific purposes.


purposes.
Total Fund £28,734,326 100%
Less Restricted Funds(includingendowment) £6,994,591 24%
Less Designated Fixed Asset Fund £4,730,574 17%
Less Designated Reserves £9,922,600 35%
Free Reserves – Revaluation Reserve £3,539,044 12%
Free Reserves – Non-charitable tradingfunds £6,574 0%
Free Unrestricted Reserves £3,540,943 12%

The general unrestricted reserves fund at the 31 March 2021 is £3,540,943 (2020: £2,613,382). The increase has occurred due to the in-year surplus and investment gains.

Financial Sustainability including COVID-19 considerations

On behalf of the Board the Finance Risk and Audit Committee (FRAC) has undertaken a detailed review of the cashflow forecasts, unrestricted reserves and investments position of the group in response to the COVID-19 pandemic and the risks this places on income generation in the immediate and mediumterm future. The FRAC has reported to the Board to assure Trustees of the sustainability of the group and considered the level of reserves, the liquidity and resilience of the organisation’s financial position and ability to create a sustainable future.

As at 31 March 2021 the consolidated Wessex Children’s Hospice Trust financial statements are reporting funds totalling £28,734,326 of which £7,086,561 would be freely available to use if the need arises.

A review of our liquidity and resilience shows:

The Board of Trustees recognise that there continues to be uncertainty over the level of income achievable in the next year and has taken this into consideration when reviewing the group’s sustainability and status as a going concern. In addition to the financial information set out above, Trustees have also considered;

Trustees have, therefore, concluded that the group is in a sustainable position for the foreseeable future and will continue to review, monitor and act as necessary to remain so.

Page 14

WESSEX CHILDREN’S HOSPICE TRUST (A company limited by guarantee)

TRUSTEES’ REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Strategy 2020-25

In the next five years, our strategic priorities are to:

The NHS Long Term Plan published in January 2019 outlines the changing healthcare landscape. This will see the provision of services across larger geographical areas and movement towards the NHS, CCGs, Local Authorities, and public and voluntary service providers working together through Strategic Transformation Partnerships (STPs). This should lead to the development of Integrated Care Systems (ICSs) to improve service delivery and funding. It outlines the need to deliver services through Managed Clinical Networks (MCNs), encouraging a system wide approach to the delivery of high quality CYP palliative care services that meet families’ needs.

The revised NHS England Children’s and Young Peoples (CYP) Palliative Care Service Specification sets out the framework for delivering a comprehensive palliative care service across all service providers. We will work with UHS and the NHS more broadly, Specialist Palliative Care Consultants, Paediatricians, Community Nursing Teams, Commissioners, other hospices, and charity providers to work toward delivering the service standards as specified across the region.

Statement of Trustees’ Responsibilities

The Trustees (who are also directors of Wessex Children’s Hospice Trust for the purposes of company law) are responsible for preparing the report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and the group and of the incoming resources and application of resources, including the income and expenditure, of the group for that period. In preparing these financial statements, the Trustees are required to:

Page 15

WESSEX CHILDREN'S HOSPICE TRUST IA cofflpany limited by guarantsel TRUSTEES, REPORT ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2021 The Trustees are responsible lor keepin9 proper accounting records that disclose with reasonable aecuraey at any lime the financi81 posllion ol the charttsble company and enable them to ensure that the financlal statements comply with the Companie8 Acl 2006. They arè also responsible for safeguardbng the assets ofthe charrtable company and the group and hence for taking reasonable steps for the prevention and d8leclion of fraud and other irregularities. In ￿ far as the Tru$lee$ are aware: There is no relevant audlt Inlormation of which the charitable company¥ auditor is unaware.. and The Trustees have taken all 81eps that they ought lo have taken lo make them8elveg aware of any rel•vanl audit information and lo establish that the auditor is aware of that informallon The Trustees arè responsible for the malntenance and integrity of th? corporate and finanaal information Included on the charitabl8 company's web8118. Legislation in the United Kingdom governing the preparation and d1s80mlna￿on of financial statements moy diffgr from legislation In other lurisdlcllons. The Trustees undertake and Gomplele tralning, ès deflned and requlred by the Board. and themselves, lo ensure they can offocllvely perform their Tru8lee role, Aud5tor Crowe U.K. LLP have Indlcated Ihelr wlllngness to conllnue a8 8tatulory auditors lo the Trust. The Trustee8 approved this report, Including th¢ ¥tralegK report on Sth trlclxr and It was $lgn•d on their b•half by Falth R•m••y- Chalr Page 16

WESSEX CHILDREN'S HOSPICE TRUST

(A company limited by guarantee)

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF WESSEX CHILDREN'S HOSPICE TRUST

Opinion

We have audited the financial statements of Wessex Children's Hospice Trust (the 'parent charitable company') and its subsidiaries (the 'group') for the year ended 31 March 2021 which comprise the Consolidated Statement of Financial Activities, the Consolidated balance sheet, the Company balance sheet, the Consolidated statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the Trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group's or the parent charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.

Other information

The Trustees are responsible for the other information. The other information comprises the information included in the Annual report, other than the financial statements and our uditor's report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our

Page 17

WESSEX CHILDREN'S HOSPICE TRUST

(A company limited by guarantee)

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF WESSEX CHILDREN'S HOSPICE TRUST (CONTINUED)

knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinion on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees' Report including the Strategic Report.

We have nothing to report in respect of the following matters in relation to which Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the Trustees' responsibilities statement, the Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Trustees are responsible for assessing the Group's and the parent charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the Group or the parent charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an uditor's report that includes our

Page 18

WESSEX CHILDREN'S HOSPICE TRUST

(A company limited by guarantee)

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF WESSEX CHILDREN'S HOSPICE TRUST (CONTINUED)

opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Details of the extent to which the audit was considered capable of detecting irregularities, including fraud and non-compliance with laws and regulations are set out below.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditor's report.

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We identified and assessed the risks of material misstatement of the financial statements from irregularities, whether due to fraud or error, and discussed these between our audit team member]. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and appropriate to provide a basis for our opinion.

We obtained an understanding of the legal and regulatory frameworks within which the charitable company and group operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006, the Charities Act 2011, together with the Charities SORP (FRS 102). We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the charitable company’s and the group’s ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the charitable company and the group for fraud. The laws and regulations we considered in this context for the UK operations were the Gambling Commission, CQC Regulations and General Data Protection Regulations.

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Trustees and other management and inspection of regulatory and legal correspondence, if any.

We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be with the completeness and accuracy of income and the override of controls by management. Our audit procedures to respond to these risks included enquiries of management, and the Finance, Risk and Audit Committee about their own identification and assessment of the risks of irregularities, designing audit procedures over income, sample testing on the posting of journals, reviewing accounting estimates for biases, reviewing regulatory correspondence with the Charity Commission and reading minutes of meetings of those charged with governance.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing noncompliance and cannot be expected to detect non-compliance with all laws and regulations.

Page 19

WESSEX CHILDREN'S HOSPICE TRUST

(A company limited by guarantee)

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF WESSEX CHILDREN'S HOSPICE TRUST (CONTINUED)

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an uditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and its members, as a body, for our audit work, for this report, or for the opinions we have formed.

Janette Joyce (Senior statutory auditor) for and on behalf of

Crowe U.K. LLP Statutory Auditor Aquis House 49-51 Blagrave Street Reading Berkshire RG1 1PL

Date: 2 November 2021

Page 20

WESSEX CHILDREN'S HOSPICE TRUST

(A company limited by guarantee)

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2021

Note
Income from:
Donations and legacies
3
Charitable activities
4
Other trading activities:
Fund raising events and lotteries
Income from shops and
merchandising
Investments
5
Other income
Total income
Expenditure on:
Raising funds:
6
Voluntary income
Operating shops
Investments
Charitable activities
7
Total expenditure
Net income/(expenditure) before net
gains/(losses) on investments
Net gains/(losses) on investments
13
Net movement in funds
Reconciliation of funds:
Total funds brought forward
18
Net movement in funds
Total funds carried forward
18		 Unrestricted
funds
2021
£
3,582,405
511,127
749,301
613,365
147,280
15,946
5,619,424
1,042,858
1,610,859
93,273
1,817,789
4,564,779
1,054,645
2,233,082
3,287,727
18,452,008
3,287,727
21,739,735		 Restricted
funds
2021
£
2,011,672
-
-
-
-
-
2,011,672
-
-
-
2,554,181
2,554,181
(542,509)
-
(542,509)
7,537,100
(542,509)
6,994,591		 Total
funds
2021
£
5,594,077
511,127
749,301
613,365
147,280
15,946
7,631,096
1,042,858
1,610,859
93,273
4,371,970
7,118,960
512,136
2,233,082
2,745,218
25,989,108
2,745,218
28,734,326		 Total
funds
2020
£
3,273,767
811,112
895,102
2,235,794
269,946
30,294
7,516,015
1,283,123
2,315,898
99,798
4,601,656
8,300,475
(784,460)
(228,998)
(1,013,458)
27,002,566
(1,013,458)
25,989,108

The notes on pages 25 to 48 form part of these financial statements.

Page 21

WESSEX CHILDRENE HOSPICE TRUST IA company limited by guar8ntee) REGISTERED NUMBER: 02601495 {England and Wales) CONSOLIDATED BALANCE SHEET AS AT 31 MARCH 2021 2021 2020 Nolo Flxod asseti Tanglble assets Inveslm8nts 12 13 11.534.933 12,599.635 11,960.318 9,488,408 24.134.568 21.448,726 Currnnt •18et• Sio¢ks D&blor$ Cash al bank and in hand 14 15,102 15 2,598,279 2,889.190 2,575 3,348. 169 2,065, 772 5,502.631 5,416,516 Creditors.. amounts falling dug wilhln one year (902,873} (876, 134) Not current auetA 4,599,758 4.540,382 Total not a•8et• 28,734,326 25,989. 108 Charlty lundg Reslrlcted funds Unreslricled lund8 18 6,994.591 7,537,100 Designated luThJs General funds Aevalualion reserve 18 14.653.174 18 3,547.517 18 3,539,044 14,399,435 2,624,707 1,427,866 Total unreslricl8d lunds 18 21.739.n5 18,452,008 Totsl funds 28,734,326 25,989, 108 The surplus lor the Charlty deah wth in the financal stat6meni$ was £2,749.969 la120.' £7.004,978 defycit). The 1Snancial slalem8nls were approved and aulhorised lor issue by the Trusl8es on 57IK (kloLTr ZQI and signed on their b8hall by.. Falth Ramsay Chalr The notes on page5 25 to 48 form part of Ihgso financial statemgnts. Page 22

WESSEX CHILDREN'S HOSPICE TRUST {A ¢omp8ny Ilmited by guarAntee) REGISTERED NUMBER: 02601495 (Englgnd and Wale8) COMPANY BALANCE SHEET AS AT 31 MARCH 2021 2021 2020 Not& FI￿d •88els Tangibb as59ts Investments 12 13 11.534,933 12,599,637 11,960,318 9,488,410 24,134,570 21,448,728 Curront as••t8 Slo¢ks Debtors Gash al bank and In hand 14 13,348 15 2,597,928 2.881,868 3,343,889 2,058. 106 5.493.140 5,401.995 Creditors.. amounts falling due within one year 16 {899,9561 {872,938) Net current agjetg 4,593,184 4,529,057 Total net a•¥gt8 28.727.754 25.977, 785 Chorlly lund• Reslricle(I funds UnreslTicled lunds 18 6,994,591 7,537, 100 Dgsignaled funds General funds Revaluation reseNe 18 14.653,174 18 3.540.945 18 3.539.044 14,399,435 4,04 1,250 Total unreslricled funds 18 21.733.163 18,440.685 Total fund$ 28,727,754 25,977,785 The Ilnancial statements were approved and authorised for is$u¢ by th& Tru$lee$ on 2021 and signed on Ihelr behalf by.. Ftylth Ramgay Ch•lr The notes on pages 25 10 48 form part ol these financial slalemenls. Page 23

WESSEX CHILDREN'S HOSPICE TRUST

(A company limited by guarantee)

CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2021

Note
Cash flows from operating activities
Net cash provided by operating activities
20
Cash flows from investing activities
Dividends and interest from investments
Proceeds from the sale of tangible fixed assets
Purchase of tangible fixed assets
Withdrawals from investment portfolio
Additions to investment portfolio
Net cash (used in)/provided by investing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
21		 2021
£
1,832,457
147,280
-
(178,890)
158,026
(1,135,455)
(1,009,039)
823,418
2,065,772
2,889,190		 2020
£
547,428
269,946
29,000
(153,299)
438,302
(187,344)
396,605
944,033
1,121,739
2,065,772

The notes on pages 25 to 48 form part of these financial statements

Page 24

WESSEX CHILDREN'S HOSPICE TRUST

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

1. General information

Wessex Children’s Hospice Trust is a registered charity (charity number 1002832) and a private company limited by guarantee (company number 02601495) incorporated in England & Wales. The registered office and principal place of business is Stockbridge Road, Sutton Scotney, Winchester, SO21 3JE. This is also the address of its wholly owned subsidiary Naomi House Children’s Hospice Ltd.

2. Accounting policies

2.1 Basis of preparation of financial statements

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), the Companies Act 2006 and the Charities Act 2011.

Wessex Children's Hospice Trust meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

These financial statements consolidate the results of the charitable company and its wholly-owned subsidiary Naomi House Children's Hospice Ltd on a line by line basis. Transactions and balances between the charitable company and its subsidiary have been eliminated from the consolidated financial statements. A separate statement of financial activities, or income and expenditure account, for the charitable company itself is not presented because the charitable company has taken advantage of the exemptions afforded by section 408 of the Companies Act 2006. The Charity has taken advantage of the exemptions in FRS 102 from the requirement to present a charity only Cash Flow Statement and certain disclosures about its own financial instruments within the consolidated financial statements.

2.2 Going concern

The Trustees consider that there are no material uncertainties about the Group’s ability to continue as a going concern.

In light of the current climate in relation to the COVID-19 pandemic the Trustees have undertaken planning and forecasting and continue to closely monitor the developing situation. Despite the current circumstances the Trustees believe that the Group’s financial resources and contingency planning is sufficient to ensure the ability of the Group to continue as a going concern for the foreseeable future, being at least twelve months from the date of approval of these financial statements and therefore have prepared the financial statements on a going concern basis.

2.3 Income

Income is recognised when the Group has entitlement to the funds, any performance conditions attached to the income have been met, it is probable that the income will be received and that the amount can be measured reliably.

Income from government grants (including retail grants) and other grants, whether 'capital' grants or ‘revenue’ grants, is recognised when the Group has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and

Page 25

WESSEX CHILDREN'S HOSPICE TRUST (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

2. Accounting policies (continued)

2.3 Income (continued)

the amount can be measured reliably.

Where entitlement occurs before income is received, the income is accrued. Where income is received in advance of the Group having entitlement to the funds the income is deferred.

Donations and gifts represents amounts receivable during the year, together with any associated tax refund and do not include the value of any pledges secured for future donations. Income from gift aid tax reclaims is recognised for all donations made prior to the year end, where valid gift aid declarations are held.

The contribution of volunteers is not included in the Statement of Financial Activities, but is disclosed in the Trustees’ Report in accordance with the SORP.

Income received in advance of the provision of a specified service is deferred until the criteria for income recognition are met.

Where legacies have been notified to the charity, but the criteria for income recognition have not been met, the legacy is treated as a contingent asset and disclosed if material in note 23.

The recognition of income from legacies is dependent on establishing entitlement, the probability of receipt and the ability to estimate with sufficient accuracy the amount receivable. Evidence of entitlement to a legacy exists when the charity has sufficient evidence that a gift has been left to them (through knowledge of the existence of a valid will and the death of the benefactor) and the executor is satisfied that the property in question will not be required to satisfy claims in the estate. Receipt of a legacy must be recognised when it is probable that it will be received and the fair value of the amount receivable, which will generally be the expected cash amount to be distributed to the charity, can be reliably measured.

2.4 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably.

Expenditure is classified under the following activity headings:

• Costs of raising funds relate to the costs incurred by the Group in inducing third parties to make voluntary contributions to it, the costs of running the charity shops, as well as the cost of any activities with a fundraising purpose. It also includes the investment manager fees.

• Expenditure on charitable activities includes the costs of running the Naomi House and Jacksplace hospices together, including the long term ventilation unit, with the provision of support for the families of the referred children and young people.

Irrecoverable VAT is charged as a cost to the Statement Of Financial Activities when the expenditure is incurred.

2.5 Allocation of support costs

Expenditure is allocated to the particular activity where the cost relates directly to that activity.

Page 26

WESSEX CHILDREN'S HOSPICE TRUST (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

2. Accounting policies (continued)

However, the cost of overall direction and administration of each activity, comprising the salary and overhead costs of the central function, is apportioned on the following basis which are an estimate, based on staff time, of the amount attributable to each activity.

Where information about the aims, objectives and projects of the charity is provided to potential beneficiaries, the costs associated with this publicity are allocated to charitable expenditure.

Support and governance costs are reallocated to each of the activities on the following basis:

• Costs of investments
 1%
• Naomi House 31%
• Jacksplace
 23%
• LTV 0.3%
• Community & Family Support 6.7%

Governance costs are the costs associated with the governance arrangements of the charity. These costs are associated with constitutional and statutory requirements and include any costs associated with the strategic management of the charity's activities and are included within support costs.

2.6 Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Group; this is normally upon notification of the interest paid or payable by the bank.

2.7 Operating leases

Rental charges are charged to the Statement of Financial Activities on a straight line basis over the term of the lease.

2.8 Tangible fixed assets and depreciation

Tangible fixed assets costing £2,500 or more are capitalised.

Depreciation costs are allocated to activities on the basis of the use of the related assets in those activities. Assets are reviewed for impairment if circumstances indicate their carrying value may exceed their net realisable value and value in use. Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives.

Depreciation is provided on the following bases:

Leasehold land - Over period lease
Leasehold buildings - 50 years
Motor vehicles - 4 years
Fixtures and fittings - 5 years
Computer equipment - 3 years

Page 27

WESSEX CHILDREN'S HOSPICE TRUST (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

2. Accounting policies (continued)

2.9 Listed investments

Investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the Balance Sheet date using the closing quoted market price. Any change in fair value will be recognised in the Statement of Financial Activities and any excess of fair value over the historic cost of the investments will be shown as a fair value reserve in the Balance Sheet. Investment gains and losses, are shown in the heading "Net gains/(losses) on investments" in the Statement of Financial Activities. The Group does not acquire put options, derivatives or other complex financial instruments.

Investments in subsidiaries are valued at cost.

2.10 Stocks

Stocks are stated at the lower of cost and net realisable value. In general, cost is determined on a first in first out basis and includes transport and handling costs. Net realisable value is the price at which stocks can be sold in the normal course of business after allowing for the costs of realisation. Provision is made where necessary for obsolete, slow moving and defective stocks.

2.11 Debtors

Trade debtors, other debtors and accrued income are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

2.12 Cash at bank and in hand

Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

2.13 Creditors

Creditors are recognised where the Group has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors are normally recognised at their settlement amount after allowing for any trade discounts due.

2.14 Financial instruments

The Group only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

2.15 Pensions

The Trust operates two pension schemes. The first is a defined contribution pension scheme, the assets of which are held independently from those of the Group. Expenditure made through the Statement of Financial Activities represents the contributions arising in the year.

Page 28

WESSEX CHILDREN'S HOSPICE TRUST (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

2. Accounting policies (continued)

2.15 Pensions (continued)

The second scheme is a final salary multi-employer pension plan which is available for certain employees only. It is not possible to identify separately the assets and liabilities relating to Wessex Children's Hospice Trust for the purposes of FRS 102 disclosure. As neither the Trust nor its employees are liable to pay any additional sums towards a funding shortfall, which is met directly by the Exchequer, pension contributions are accounted for in the year in which they become payable. See Note 25 for more details.

2.16 Fund accounting

Unrestricted funds are donations and other income received or generated for the charitable purposes and have not been designated for other purposes.

Designated funds are unrestricted funds earmarked by the trustees for particular purposes. Details of the aim and use of designated funds are included within the notes to the financial statements.

Restricted funds are to be used for specific purposes as laid down by the donor. Expenditure which meets these criteria is charged to the fund. Details of the restrictions are included within the notes to the financial statements.

Endowment funds are investments donated to the charity to generate income which can be spent on charitable activities. Details of the aim and use of endowment funds are included within the notes to the financial statements.

2.17 Significant estimates and judgements

Preparation of the financial statements requires management to make significant judgements and estimates. The items in the financial statements where these judgements and estimates have been made include:

Management judgement is applied over the valuation of legacy income and the legacy pipeline where cash is not yet received. See note 2.3 for the legacy accounting policy and note 23 for the value of the legacy pipeline.

Page 29

WESSEX CHILDREN'S HOSPICE TRUST

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

3. Income from donations and legacies

Unrestricted
funds
2021
£
Grants
Grants & Trusts
240,234
Government grants
Government Retail, Leisure & Hospitality
Grant
-
NHS England Children's Hospices Grants
Programme
-
COVID-19 Retail Grant
310,605
Coronavirus Job Retention Scheme
880,640
NHSE Emergency COVID-19 grant funding
-
1,431,479
Donations
1,092,369
Legacies
1,058,557
3,582,405
Total 2020
2,732,201		 Restricted
funds
2021
£
127,839
-
602,676
-
-
1,203,333
1,933,848
77,824
-
2,011,672
541,566		 Total
funds
2021
£
368,073
-
602,676
310,605
880,640
1,203,333
3,365,327
1,170,193
1,058,557
5,594,077
3,273,767		 Total
funds
2020
£
300,580
500,000
414,469
-
-
-
1,215,049
1,416,634
642,084
3,273,767

The NHSE awarded funding to allow the hospice to make available bed capacity and community support from April 2020 to July 2020 to provide support to people with complex needs in the context of the COVID-19 situation and to provide bed capacity and community support from Novermber 2020 to March 2021 for the same purpose.

Page 30

WESSEX CHILDREN'S HOSPICE TRUST

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

4. Income from charitable activities

Clinical Commissioning Groups
Individuals
Other		 2021
£
416,590
26,400
68,137
511,127		 2020
£
731,312
76,050
3,750
811,112

Income from charitable activities is unrestricted during this and the prior year.

5. Investment income

Unrestricted
funds
2021
£
Dividends
146,840
Interest
440
147,280
Total 2020
269,946		 Total
funds
2021
£
146,840
440
147,280
269,946		 Total
funds
2020
£
269,683
263
269,946

Page 31

WESSEX CHILDREN'S HOSPICE TRUST

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

6. Expenditure on raising funds

Costs of raising voluntary income

Unrestricted
funds
2021
£
Other staff and volunteer costs
1,078
Direct costs
300,868
Overhead costs
140,653
Wages and salaries
438,457
National Insurance
40,783
Pension costs
28,542
Depreciation
3,028
Allocated centrally incurred support and governance costs
89,449
1,042,858
Total 2020
1,283,123
Costs of operating shops
Unrestricted
funds
2021
£
Facilities & maintenance
622,259
Wages and salaries
761,753
National Insurance
45,336
Pension costs
25,034
Depreciation
18,367
Allocated centrally incurred support and governance costs
138,110
1,610,859
Total 2020
2,315,898		 Total
funds
2021
£
1,078
300,868
140,653
438,457
40,783
28,542
3,028
89,449
1,042,858
1,283,123
Total
funds
2021
£
622,259
761,753
45,336
25,034
18,367
138,110
1,610,859
2,315,898		 Total
funds
2020
£
5,530
338,056
170,135
462,889
43,634
28,632
3,028
231,219
1,283,123
Total
funds
2020
£
853,890
876,380
59,740
25,037
70,317
430,534
2,315,898

Page 32

WESSEX CHILDREN'S HOSPICE TRUST

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

7. Analysis of expenditure by charitable activities

Naomi House
Jacksplace
Long Term Ventilation Unit
Community & Family Support
Total 2020		 Activities
undertaken
directly
2021
£
2,036,974
1,536,663
21,990
409,759
4,005,386
3,527,863		 Support
costs
2021
£
185,843
140,199
2,065
38,477
366,584
1,073,793		 Total
funds
2021
£
2,222,817
1,676,862
24,055
448,236
4,371,970
4,601,656		 Total
funds
2020
£
2,212,698
1,599,236
95,102
694,620
4,601,656

Analysis of direct costs

Staff costs
Depreciation
Other staff &
volunteer costs
Direct costs
Facilities &
maintenance
Overhead costs
Total 2020		 Naomi
House
2021
£
1,315,223
229,568
17,183
171,676
102,465
200,859
2,036,974
1,606,477		 Jacksplace
2021
£
992,185
173,183
12,962
129,510
77,298
151,525
1,536,663
1,314,389		 LTV
2021
£
-
19,456
-
2,534
-
-
21,990
67,845		 Community
& Family
Support
2021
£
380,403
7,073
435
14,883
-
6,965
409,759
539,152		 Total
funds
2021
£
2,687,811
429,280
30,580
318,603
179,763
359,349
4,005,386
3,527,863		 Total
funds
2020
£
2,829,856
80,262
138,719
357,243
-
121,783
3,527,863

Page 33

WESSEX CHILDREN'S HOSPICE TRUST

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

7. Analysis of expenditure by charitable activities (continued)

Analysis of support costs

Staff costs
Depreciation
Other staff &
volunteer costs
Direct costs
Facilities &
maintenance
Overhead costs
Total 2020		 Naomi
House
2021
£
134,816
1,451
8,887
-
-
40,689
185,843
606,221		 Jacksplace
2021
£
98,075
1,095
10,333
-
-
30,696
140,199
284,847		 LTV
2021
£
1,445
16
152
-
-
452
2,065
27,257		 Community
& Family
Support
2021
£
26,917
300
2,836
-
-
8,424
38,477
155,468		 Total
funds
2021
£
261,253
2,862
22,208
-
-
80,261
366,584
1,073,793		 Total
funds
2020
£
434,342
249,128
66,876
11,760
113,359
198,328
1,073,793

Governance costs of £20,446 (2020: £57,371 ) are included within support costs.

8. Auditor's remuneration

- The auditor's remuneration amounts to an auditor fee of £15,120 (2020 £14,750) , and non-audit fees of of £4,850 ( 2020 - £3,100 ).

9. Staff costs

Wages and salaries
Social security costs
Contribution to defined contribution and
defined benefit pension schemes		 Group
2021
£
3,852,997
344,866
255,896
4,453,759		 Group
2020
£
4,325,809
403,738
305,922
5,035,469		 Company
2021
£
3,852,997
344,866
255,896
4,453,759		 Company
2020
£
4,325,809
403,738
305,922
5,035,469

Redundancy and termination payments totalling £20,161 were made to seven employees during the financial year (2020: £2,500 to two employees).

Page 34

WESSEX CHILDREN'S HOSPICE TRUST (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

9. Staff costs (continued)

The average number of persons employed by the Company during the year was as follows:

Care
Fundraising
Retail & Merchandice
Management & Administration		 Group
2021
No.
91
16
54
12
173		 Group
2020
No.
96
17
61
13
187

The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:

Group Group
2021 2020
No. No.
In the band £60,001 - £70,000 1 1
In the band £80,001 - £90,000 1 1
In the band £90,001 - £100,000 1 1

The total employee benefits including pension contributions and employers NI of the key management personnel were £438,580 (2020: £432,505). Key management personnel are listed on page 1.

10. Trustees' remuneration and expenses

The Charity trustees were neither paid nor received any other benefits from employment with the charity in the year (2020: £Nil) . No Charity trustee received payment for professional or other services supplied to the charity (2020: £Nil).

Expenses of £55 (2020: £50) were paid for, or reimbursed to, one trustee (2020: one trustee) . Expenses related to travel and subsistence.

11. Taxation

The Charity is exempt from corporation tax as all its income is charitable and is applied for charitable purposes. The Charity's trading subsidiary Naomi House Children's Hospice Ltd gift aids available profits to the parent Charity within nine months of the year end so it has no tax charge.

Page 35

WESSEX CHILDREN'S HOSPICE TRUST

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

12. Tangible fixed assets

Group and Company

Cost or valuation
At 1 April 2020
Additions
Disposals
Transfers between
classes
VAT adjustment
At 31 March 2021
Depreciation
At 1 April 2020
Charge for the year
On disposals
At 31 March 2021
Net book value
At 31 March 2021
At 31 March 2020		 Freehold
property
£
700,000
-
-
-
-
700,000
-
-
-
-
700,000
700,000		 Leasehold
land and
property
£
13,508,835
102,772
(21,712)
25,920
(148,898)
13,466,917
2,575,333
327,917
(21,712)
2,881,538
10,585,379
10,933,502		 Assets
under
construction
£
34,187
-
-
(34,187)
-
-
-
-
-
-
-
34,187		 Motor
vehicles
£
218,665
-
-
-
-
218,665
154,950
37,294
-
192,244
26,421
63,715		 Fixtures
and fittings
and
computer
equipment
£
1,393,834
76,118
(100,373)
8,267
-
1,377,846
1,164,920
90,166
(100,373)
1,154,713
223,133
228,914		 Total
£
15,855,521
178,890
(122,085)
-
(148,898)
15,763,428
3,895,203
455,377
(122,085)
4,228,495
11,534,933
11,960,318

Page 36

WESSEX CHILDREN'S HOSPICE TRUST

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

13. Fixed asset investments

Group
Valuation
At 1 April 2020
New money invested
Amounts extracted
Net gain on change in fair value
Investment management fees
At 31 March 2021
Company
Valuation
At 1 April 2020
New money invested
Amounts extracted
Net gain on change in fair value
Investment management fees
At 31 March 2021		 Investments
in
subsidiary
companies
£
2
-
-
-
-
2		 Listed
investments
£
9,488,408
1,135,455
(158,026)
2,233,082
(99,284)
12,599,635		 Listed
investments
£
9,488,408
1,135,455
(158,026)
2,233,082
(99,284)
12,599,635
Total
£
9,488,410
1,135,455
(158,026)
2,233,082
(99,284)
12,599,637

Page 37

WESSEX CHILDREN'S HOSPICE TRUST

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

13. Fixed asset investments (continued)

Principal subsidiaries

The following was a subsidiary undertaking of the Company:

Name Company Registered office or principal Principal activity number place of business Naomi House Children's Hospice 02861158 Naomi House, Stockbridge Road, Non-primary purpose Ltd

Naomi House, Stockbridge Road, Non-primary purpose Sutton Scotney, Winchester, trading SO21 3JE

Class of Holding Included in shares consolidation Ordinary 100% Yes

The financial results of the subsidiary for the year were:

Name
Income
£
Expenditure
£
Naomi House Children's Hospice Ltd
9,080
(13,830)
14.
Stocks
Group
Group
2021
2020
£
£
Finished goods and goods for resale
15,162
2,575
15.
Debtors
Group
Group
2021
2020
£
£
Trade debtors
95,638
90,791
Other debtors
60,498
87,746
Prepayments and accrued income
2,442,143
3,169,632
2,598,279
3,348,169		 (Loss) for
the year
£
(4,750)
Company
2021
£
13,346
Company
2021
£
95,404
60,379
2,442,143
2,597,926		 Net assets
£
6,574
Company
2020
£
-
Company
2020
£
86,511
87,746
3,169,632
3,343,889

Page 38

WESSEX CHILDREN'S HOSPICE TRUST

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

16. Creditors: Amounts falling due within one year

Trade creditors
Amounts owed to group undertakings
Other taxation and social security
Other creditors
Accruals and deferred income		 Group
2021
£
263,205
-
72,312
149,225
418,131
902,873		 Group
2020
£
256,580
-
95,630
133,261
390,663
876,134		 Company
2021
£
263,205
533
72,312
149,225
414,681
899,956		 Company
2020
£
254,450
2,285
95,630
133,261
387,312
872,938

Deferred income of £160,785 (2020: £60,819) relates to amounts received in advance for events held in the next financial year and a deferred grant. All of the prior year deferred income has been released in the current year.

17. Financial instruments

Group Group Company Company
2021 2020 2021 2020
£ £ £ £
Financial assets
Financial assets measured at fair value
through income and expenditure 12,599,635 9,488,408 12,599,635 9,488,408

Financial assets measured at fair value through income and expenditure comprise listed investments.

Page 39

WESSEX CHILDREN'S HOSPICE TRUST

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

18. Statement of funds Statement of funds - current year

Unrestricted
funds
Designated
funds
Fixed Asset fund
Naomi House
fund
Jacksplace fund
Capital
Development
Fund
Retail
Operations Fund
General funds
General Funds
Non-charitable
trading funds
Revaluation
reserve
Total
Unrestricted
funds		 Balance at 1
April 2020
£
4,795,885
4,486,000
4,029,000
314,550
774,000
14,399,435
2,613,382
11,325
1,427,866
4,052,573
18,452,008		 Income
£
-
-
-
-
-
-
5,615,834
3,590
-
5,619,424
5,619,424		 Expenditure
£
-
-
-
-
-
-
(4,556,438)
(8,341)
-
(4,564,779)
(4,564,779)		 Transfers
in/out
£
(65,311)
-
-
(80,550)
399,600
253,739
(253,739)
-
-
(253,739)
-		 Gains/
(Losses)
£
-
-
-
-
-
-
121,904
-
2,111,178
2,233,082
2,233,082		 Balance at
31 March
2021
£
4,730,574
4,486,000
4,029,000
234,000
1,173,600
14,653,174
3,540,943
6,574
3,539,044
7,086,561
21,739,735

Page 40

WESSEX CHILDREN'S HOSPICE TRUST

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

18. Statement of funds (continued)

Restricted
funds
Fixed Asset
Fund-Jacksplace
Fixed Asset
Fund-Naomi
House
Jacksplace Fund
Hospice
Running Costs
Building &
Facilities
Diversion
Therapy
Endowment
Fund
Bereavement
Support
Total of funds		 Balance at 1
April 2020
£
5,165,004
1,999,429
51,348
5,001
260,228
46,090
10,000
-
7,537,100
25,989,108		 Income
£
35,712
-
100,000
1,845,960
-
-
-
30,000
2,011,672
7,631,096		 Expenditure
£
(155,157)
(367,052)
(151,348)
(1,844,461)
-
(6,163)
-
(30,000)
(2,554,181)
(7,118,960)		 Transfers
in/out
£
91,064
44,397
-
-
(113,825)
(21,636)
-
-
-
-		 Gains/
(Losses)
£
-
-
-
-
-
-
-
-
-
2,233,082		 Balance at
31 March
2021
£
5,136,623
1,676,774
-
6,500
146,403
18,291
10,000
-
6,994,591
28,734,326

Page 41

WESSEX CHILDREN'S HOSPICE TRUST

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

18. Statement of funds (continued)

Statement of funds - prior year

Unrestricted
funds
Designated
funds
Fixed Asset fund
Naomi House
fund
Jacksplace fund
Capital
Development
Fund
Retail
Operations Fund
General funds
General Funds
Non-charitable
trading funds
Revaluation
reserve
Total
Unrestricted
funds		 Balance at
1 April 2019
£
4,352,231
6,170,000
3,900,000
279,900
655,000
15,357,131
1,716,917
19,803
2,003,443
3,740,163
19,097,294		 Income
£
-
-
-
-
-
-
6,974,449
-
-
6,974,449
6,974,449		 Expenditure
£
-
-
-
-
-
-
(7,382,259)
(8,478)
-
(7,390,737)
(7,390,737)		 Transfers
in/out
£
443,654
(1,684,000)
129,000
34,650
119,000
(957,696)
957,696
-
-
957,696
-		 Gains/
(Losses)
£
-
-
-
-
-
-
346,579
-
(575,577)
(228,998)
(228,998)		 Balance at
31 March
2020
£
4,795,885
4,486,000
4,029,000
314,550
774,000
14,399,435
2,613,382
11,325
1,427,866
4,052,573
18,452,008

Page 42

WESSEX CHILDREN'S HOSPICE TRUST

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

18. Statement of funds (continued)

Restricted
funds
Fixed Asset
Fund-Jacksplace
Fixed Asset
Fund-Naomi
House
Jacksplace Fund
Hospice
Running Costs
Building &
Facilities
Diversion
Therapy
Endowment
Fund
Total of funds		 Balance at
1 April 2019
£
5,322,963
1,999,429
128,749
95,000
197,074
152,057
10,000
7,905,272
27,002,566		 Income
£
14,795
-
2,288
452,444
67,199
4,840
-
541,566
7,516,015		 Expenditure
£
(176,799)
-
(79,689)
(542,443)
-
(110,807)
-
(909,738)
(8,300,475)		 Transfers
in/out
£
4,045
-
-
-
(4,045)
-
-
-
-		 Gains/
(Losses)
£
-
-
-
-
-
-
-
-
(228,998)		 Balance at
31 March
2020
£
5,165,004
1,999,429
51,348
5,001
260,228
46,090
10,000
7,537,100
25,989,108

Page 43

WESSEX CHILDREN'S HOSPICE TRUST (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

18. Statement of funds (continued)

Unrestricted funds

Charity only unrestricted funds total £21,733,163, being total unrestricted funds of £21,739,735 less the trading subsidiary retained earnings of £6,572.

Purposes of restricted funds

Restricted funds can only be expended in accordance with the donors' specific instructions. The purpose of each fund is as follows:

Fixed Asset Fund - Jacksplace

The net book value of restricted fixed assets purchased with restricted funds and predominantly relates to the Jacksplace hospice.

Fixed Asset Fund - Naomi House

This represents the refurbishment cost funded by restricted funds.

Jacksplace Fund

Funds received specifically to meet the running cost of Jacksplace.

Hospice Running Costs

This denotes donations received to pay for care staff and the direct costs of running both hospices.

Building & Facilities

This fund relates to donations received explicitly to meet the costs of improving and maintaining hospice facilities.

Diversion Therapies

This covers the cost of the wide range of therapies, play and activities which enrich the children and young adult’s stays.

Endowment Fund

This was donated to the Trust to be held as investment cash to generate income from interest.

Purpose of designated funds

The designated funds comprise:

Fixed Asset Fund

This is the net book value of unrestricted Tangible Fixed Assets. This mainly represents the Naomi House building and equipment.

Naomi House Fund

Children's hospice services are expensive to run and the families are highly dependent on the Trust providing uninterrupted services from initial referrals right through to end of life.

Our funding is highly dependent on private rather than government sources. The Trustees have to ensure that there are sufficient reserves to keep our Naomi House hospice open and running to capacity.

This fund ensures that a continued service can be delivered in the event of an unforeseen income disruption. This would include a failure of fundraising arising from changes in sentiment, relationships and reputation.

The Trustees have calculated that a reserve to secure 18 months running costs of the Naomi House hospice (and the related community & family services) would ensure continuity in the event of a large

Page 44

WESSEX CHILDREN'S HOSPICE TRUST (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

18. Statement of funds (continued)

variation in income. The balance at 31 March 2021 of £4.5m represents 18 months of Care, Fundraising and Management costs.

Jacksplace Fund

Similar to Naomi House above. This is to ensure that a continued service can be delivered in the event of an unforeseen income disruption. The fund should represent 18 months running costs of the Jacksplace young adult's hospice to ensure continuity in the event of a large variation in income.

The balance at 31 March 2021 of £4.0m represents 18 months of Care, Fundraising and Management costs.

Fund transfers are either for capital purchases made during the year where the restriction has been fulfilled or they were transfers to accurately reflect the closing designated fund balances.

19. Analysis of net assets between funds

Analysis of net assets between funds - current year

Unrestricted
funds
2021
£
Tangible fixed assets
4,718,386
Fixed asset investments
12,589,635
Current assets
5,334,587
Creditors due within one year
(902,873)
Total
21,739,735		 Restricted
funds
2021
£
6,816,547
10,000
168,044
-
6,994,591		 Total
funds
2021
£
11,534,933
12,599,635
5,502,631
(902,873)
28,734,326

Analysis of net assets between funds - prior year

Tangible fixed assets
Fixed asset investments
Current assets
Creditors due within one year
Total		 Unrestricted
funds
2020
£
4,795,885
9,478,408
5,053,849
(876,134)
18,452,008		 Restricted
funds
2020
£
7,164,433
10,000
362,667
-
7,537,100		 Total
funds
2020
£
11,960,318
9,488,408
5,416,516
(876,134)
25,989,108

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WESSEX CHILDREN'S HOSPICE TRUST

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

20. Reconciliation of net movement in funds to net cash flow from operating activities

Net income/(expenditure) for the year (as per Statement
Activities)
Adjustments for:
Depreciation charges
Investment management charges
(Gains)/losses on investments
Dividends and interest from investments
Loss/(profit) on the sale of fixed assets
(Increase)/decrease in stocks
Decrease in debtors
Increase in creditors
Capital Goods Scheme adjustment
Net cash provided by operating activities
21.
Analysis of cash and cash equivalents
Cash in hand
Total cash and cash equivalents
22.
Analysis of changes in net debt
Cash at bank and in hand		 of Financial
At 1 April
2020
£
2,065,772
2,065,772		 Group
2021
£
2,745,218
455,377
99,284
(2,233,082)
(147,280)
-
(12,587)
749,890
26,739
148,898
1,832,457
Group
2021
£
2,889,190
2,889,190
Cash flows
£
823,418
823,418		 Group
2020
£
(1,013,458)
560,446
95,670
228,998
(269,946)
(21,842)
8,080
714,330
245,150
-
547,428
Group
2020
£
2,065,772
2,065,772
At 31 March
2021
£
2,889,190
2,889,190

Page 46

WESSEX CHILDREN'S HOSPICE TRUST

(A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

23. Contingent assets - legacies

At the year end the Charity had a legacy pipeline with a potential value of £816,857.

24. Contingent liabilities

In the year ended 31 March 2010, Hampshire PCT awarded a capital grant of £1,500,000 towards the construction cost of Jacksplace. The Grant Agreement and underlying Charge operate for an unlimited duration; therefore the potential to repay the Grant will remain indefinitely. The Grant can be required to be repaid mandatorily in a number of circumstances such as the Trust ceasing to be a charity or Jacksplace ceasing to be used for the provision of hospice services.

25. Pension commitments

The Group operates a defined contribution pension scheme for certain qualifying employees and contributes up to 8% of basic salary matching employee contributions. The total pension contributions payable in the year were £126,617 (2020: £133,032). There were £18,950 outstanding contributions at the year-end (2020: £20,826).

The Charity also operates the NHS Pension Scheme. Past and present employees are covered by the provisions of the two NHS Pension Schemes. Details of the benefits payable and rules of the Schemes can be found on the NHS Pensions website at www.nhsbsa.nhs.uk/pensions. Both are unfunded defined benefit schemes that cover NHS employers, GP practices and other bodies, allowed under the direction of the Secretary of State for Health and Social Care in England and Wales. They are not designed to be run in a way that would enable NHS bodies to identify their share of the underlying scheme assets and liabilities. Therefore, each scheme is accounted for as if it were a defined contribution scheme: the cost to the NHS body of participating in each scheme is taken as equal to the contributions payable to that scheme for the accounting period.

In order that the defined benefit obligations recognised in the financial statements do not differ materially from those that would be determined at the reporting date by a formal actuarial valuation, the FReM requires that “the period between formal valuations shall be four years, with approximate assessments in intervening years”. An outline of these follows:

a) Accounting valuation

A valuation of scheme liability is carried out annually by the scheme actuary (currently the Government Actuary’s Department) as at the end of the reporting period. This utilises an actuarial assessment for the previous accounting period in conjunction with updated membership and financial data for the current reporting period, and is accepted as providing suitably robust figures for financial reporting purposes. The valuation of the scheme liability as at 31 March 2021, is based on valuation data as 31 March 2020, updated to 31 March 2021 with summary global member and accounting data. In undertaking this actuarial assessment, the methodology prescribed in IAS 19, relevant FReM interpretations, and the discount rate prescribed by HM Treasury have also been used.

The latest assessment of the liabilities of the scheme is contained in the report of the scheme actuary, which forms part of the annual NHS Pension Scheme Accounts. These accounts can be viewed on the NHS Pensions website and are published annually. Copies can also be obtained from The Stationery Office.

b) Full actuarial (funding) valuation

The purpose of this valuation is to assess the level of liability in respect of the benefits due under the schemes (taking into account recent demographic experience), and to recommend contribution rates payable by employees and employers.

Page 47

WESSEX CHILDREN'S HOSPICE TRUST (A company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

25. Pension commitments (continued)

The latest actuarial valuation undertaken for the NHS Pension Scheme was completed as at 31 March 2016. The results of this valuation set the employer contribution rate payable from April 2019 to 20.6% of pensionable pay. The 2016 funding valuation was also expected to test the cost of the Scheme relative to the employer cost cap that was set following the 2012 valuation. In January 2019, the Government announced a pause to the cost control element of the 2016 valuations, due to the uncertainty around member benefits caused by the discrimination ruling relating to the McCloud case.

The Government subsequently announced in July 2020 that the pause had been lifted, and so the cost control element of the 2016 valuations could be completed. The Government has set out that the costs of remedy of the discrimination will be included in this process. HMT valuation directions will set out the technical detail of how the costs of remedy will be included in the valuation process. The Government has also confirmed that the Government Actuary is reviewing the cost control mechanism (as was originally announced in 2018). The review will assess whether the cost control mechanism is working in line with original government objectives and reported to Government in April 2021. The findings of this review will not impact the 2016 valuations, with the aim for any changes to the cost cap mechanism to be made in time for the completion of the 2020 actuarial valuations.

The total pension contributions payable in the year were £129,279 (2020: £175,538) . There were £19,632 outstanding contributions at the year-end (2020: £24,730).

26. Operating lease commitments

At 31 March 2021 the Group and the Company had commitments to make future minimum lease payments under non-cancellable operating leases as follows:

Not later than 1 year
Later than 1 year and not later than 5 years		 Group
2021
£
350,035
657,220
1,007,255		 Group
2020
£
374,164
363,538
737,702		 Company
2021
£
350,035
657,220
1,007,255		 Company
2020
£
374,164
363,538
737,702

27. Related party transactions

The intercompany balance at the year end was £533 (2020: £2,285) owed by Naomi House Children's Hospice Limited. Amounts of £2,743 were recharged to the subsidiary during the year.

Page 48