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2021-03-31-accounts

Company number: 02588395 Charity Number: 1002856

St. Michael’s Hospice (North Hampshire) (Company Limited by Guarantee)

Group Report and financial statements For the year ended 31 March 2021

St. Michael’s Hospice (North Hampshire) and subsidiary company

Contents

For the year ended 31 March 2021

Reference and administrative information ...................................................................................... 1 Trustees’ annual report .................................................................................................................. 3 Independent auditor’s report ....................................................................................................... 23 Consolidated statement of financial activities .............................................................................. 28 Balance sheets .............................................................................................................................. 29 Consolidated statement of cash flows ........................................................................................... 30 Notes to the financial statements ................................................................................................. 31

St. Michael’s Hospice (North Hampshire) and subsidiary company

Reference and administrative information

For the year ended 31 March 2021 Company number 02588395 Country of incorporation United Kingdom Charity number 1002856 Country of registration England Registered office and Basil de Ferranti House operational address Aldermaston Road Basingstoke Hampshire RG24 9NB Patrons Val Buckley The Earl of Portsmouth Honorary Life President Mr A Soundy 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:

A Chancellor Chair E Verney Vice Chair M Poulter Treasurer and Secretary C Burghes M Dolby Appointed 17 April 2020 C Hutchings P Kaye J Lyons MBE Appointed 9 November 2020 D Salisbury C Thiriet Appointed 17 April 2020, Resigned 7 December 2020 C de Ferranti Resigned 9 November 2020 H Freeman Resigned 12 January 2021 S Scott-Malden Resigned 9 November 2020 Key management I Cameron Chief Executive J Astles Finance Director C Griffiths Commercial Director H Maskell Director of People and Culture J Storrar Medical Director Appointed 1 July 2020 M Partridge Director of Medical Services Seconded 30 June 2020 J Spreadbury Director of Patient Services Resigned 28 Feb 2021

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St. Michael’s Hospice (North Hampshire) and subsidiary company

Reference and administrative information

For the year ended 31 March 2021

Bankers Lloyds Bank PLC 2, Winchester Street BASINGSTOKE, RG21 1EB

Auditor Sayer Vincent LLP Chartered Accountants and Statutory Auditor Invicta House 108-114 Golden Lane LONDON EC1Y 0TL Investment CCLA Fund Managers Limited Managers Senator House 85 Queen Victoria Street LONDON EC4V 4ET

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St. Michael’s Hospice (North Hampshire) and subsidiary company

Trustees’ annual report

For the year ended 31 March 2021

The trustees present their report and the audited financial statements for the year ended March 31, 2021.

Reference and administrative information set out on page 1 forms part of this report. The financial statements comply with current statutory requirements, the memorandum and articles of association, the requirements of a directors’ report as required under company law, and the Statement of Recommended Practice - Accounting and Reporting by Charities: SORP applicable to charities preparing their accounts in accordance with FRS 102.

St. Michael’s Hospice is registered under the Health and Social Care Act 2008 (Regulated Activities) and the Care Quality Commission (Registration) Regulations 2009.

Objectives and activities

The trustees review the aims, objectives and activities of the charity each year. This report looks at what the charity has achieved and the outcomes of its work in the reporting period. The trustees report the success of each key activity and the benefits the charity has brought to those groups of people that it is set up to help. The review also helps the trustees ensure the charity's aims, objectives and activities remained focused on its stated purposes.

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.

Purposes and aims

The work of hospices is ultimately to provide a good death for people. What we saw nightly on our news programmes this year was our health service desperately trying to do just that but under the cruellest of circumstances as it was so vital to minimise human contact. The images of families unable to say goodbye to loved ones except through a computer screen, who didn’t get to spend precious time in those final days reflecting on the good times, brought into stark relief why those communities who have a hospice value them so dearly.

St. Michael’s purpose is to enable people faced with life limiting illness, their families and carers, to attain the highest possible quality of life by providing a choice of specialist care and support. In this extraordinary year we were able to fulfil this purpose in continually changing and challenging circumstances.

We enabled people still to die in a place of their choosing, with their loved ones at their side, having lived their final days and months in the best health and as free from pain as is possible.

We did this through the courage, resilience, passion and compassion of our clinical teams and through the professionalism and determination of all the supporting teams. And that really is the

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St. Michael’s Hospice (North Hampshire) and subsidiary company

Trustees’ annual report

For the year ended 31 March 2021

picture for this year that this report will focus on: 2020-21 cannot be compared to the year before and will not be a benchmark for the years that follow.

To achieve our purpose, we have a clearly defined set of aims:

We meet our aims through the following activities:

In the short term, delivering our aims means having the best clinical staff on hand to care for our patients, a dynamic team to raise the vital funds needed, and a dedicated staff for all the necessary support functions.

During this last year we knew our staff would be under incredible strain to deliver our services and we focussed on their health and wellbeing to enable them to do their roles. We added a staff intranet to increase communication channels from the Chief Executive so that everyone could always know what was happening whether they were at the hospice, working from home or furloughed. During the height of the crisis, daily communications were sent out along with weekly reports from the Medical Director. Our complementary therapy teams offered staff custom blended aromatherapy oils. The HR team frequently signposted staff to health and wellbeing resources that were available either through our private health provider, were part of the Hospice UK Hub initiative or were available through corporate partnerships.

The Hospice is not exempt from the shortage of nursing staff occurring across the county. To ensure that we offered working conditions competitive with other local healthcare providers, we reviewed our terms and conditions and instituted joining and referral bonuses. We also invested in video assets to be sure that prospective employees fully understood the advantages of working for St. Michael’s.

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St. Michael’s Hospice (North Hampshire) and subsidiary company

Trustees’ annual report

For the year ended 31 March 2021

During the earliest days of the crisis, the Hospice also fulfilled its aim to ensure that all dying people have access to the very best medical care by getting up and running a palliative care hub. By keeping patients who could stay at home out of the hospital, pressure was relieved on hospital wards. Working together with Hampshire Hospital NHS Foundation Trust (HHFT), Southern Health NHS Foundation Trust and the local GP surgeries, the COVID-19 Hub, based and operated by St. Michael’s:

We were also joined in the Hospice by the local Macmillan team from HHFT to enable them to work away from the hospital. What grew out of this arrangement begun from necessity was a much stronger working relationship between the two community teams, ours and the Macmillan team. Working in close proximity improved communication between the two teams so that the transfer of patient care from one team to the other became more fluid, to the great advantage of the patients and their families. The move was such a success that the team is now based here permanently, and our aim is to take the lead in coordinating end of life and palliative care to the community.

In the financial year 2019-2020, we set our long-term objectives through the development of our strategic plan. The plan focuses on:

Despite the circumstances of the last year, all of these objectives continued to be addressed and are at the forefront of the Senior Leadership Team’s (SLT) plans.

For the first point, as well as the relationships we nurtured during the establishment and running of the COVID-19 Hub, we were able to make room for the HHFT Lyford Unit to return to Basingstoke after they had to be relocated to Winchester to make room in the Hospital for Covid patients. The Lyford Unit provides treatment, investigative and therapeutic procedures and consultations to patients with a variety of long-term or prolonged conditions.

Thanks in part to initiatives from the government to provide funds to hospices, run a furlough scheme and provide retail grant funding scheme, combined with the cost saving measures we also implemented, we were able to continue our services. Without this support from the government, we would have needed to heavily draw on our reserves during the year.

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St. Michael’s Hospice (North Hampshire) and subsidiary company

Trustees’ annual report

For the year ended 31 March 2021

The quick-thinking and flexibility of our fundraising teams, who came up with novel ways to engage our supporters, from virtual events to Facebook dog shows, meant we also continued to bring in donations despite the challenging circumstances of lockdown and social distancing. A debt of thanks is also due to the Friends of St. Michael’s Hospice who, because all their events had to be cancelled, ran an appeal which raised over £250,000. Our retail team also helped by moving quickly to get an eBay store up and running as soon as that was allowed.

The clinical and non-clinical Blue Stream Academy eLearning suite which we run is designed to mean training and development can run inhouse at any time which suits the individual. This facility meant we were able to ensure that our staff maintained their continued investment in their skills.

During the year we also developed and launched a Compassionate Neighbours Scheme which will extend our services.

Strategic report

Achievements and performance

The charity's main activities and the people it seeks to help are described below. All its charitable activities focus on the provision of specialist palliative care and support services to the terminally ill, their carers and family, and are undertaken to further St. Michael’s Hospice’s charitable purposes for the public benefit.

Significant Achievements

The following are key achievements for the past year.

Principal activities and performance

Care Services provision

Care is provided to patients with a diagnosis of a life-limiting illness. Care is provided both in their own homes or at the Hospice in either our IPU or for visiting day patients in our treatment rooms. Covid meant that during this last year, we were limited in the extent to which patients could come to the Hospice for treatments. Care service provision is broken down for discussion into IPU, Hospice at Home, Therapies, and Family Support Services.

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St. Michael’s Hospice (North Hampshire) and subsidiary company

Trustees’ annual report

For the year ended 31 March 2021

1.In-Patient Unit (IPU)

The IPU provides 10 beds for those patients whose conditions are the most critical and complex and who would therefore benefit from a period of intensive care. During the year there were 225 (2020: 207) admissions to the IPU and the average length of stay was 8.8 days (2020: 12.1).

Some of the work done on the IPU is to stabilise patients and allow them to return home. This is demonstrated by the fact that 95 (2020: 57) patients were able to return home after a period on the IPU. While there are fluctuations in this number year on year, the increased number of patients returning home this year is partly because of the introduction of a new daily discharge meeting. The IPU staff start parallel planning for discharge from the start of the admission, resulting in earlier discussions with patients and families about what they would need to be in place prior to discharge. We are then better prepared for when the patient is well enough to be discharged.

Measuring performance can be difficult but we monitor key indicators from our VOICES survey, which is mailed to all families following a bereavement, as well as through Friends and Family Feedback cards. Results of these are monitored on an ongoing basis by our Quality and Governance Manager so that any important issues are immediately passed for follow up to senior members of the clinical team and the SLT where necessary. All the results are collated annually and published on our website. Monitoring feedback this way promotes a culture of transparency and continual improvement as well as providing learning opportunities.

One of our aims is to ‘ensure that all dying people have access to the very best medical care and support wherever and whenever they require it, allowing them to be as free as possible from unpleasant symptoms and pain’, and the latest figures from the report for January 2020 to Dec 2020 show the following:

Another of our aims is to ‘allow our patients to die with dignity in a place of their choice’. Achieving this can be difficult as the end of life may not always proceed in the way it was expected. The VOICES survey showed that 77% (2019: 60%) of patients wanted to die at home and that of those who had a preference, 57% (2019: 60%) achieved their preferred place of death. However, reflecting perhaps the degree to which things can change, 98% (2019: 90%) of respondents felt overall that their loved one died in the right place. Importantly, 95% (2019: 99%) of respondents felt the patient was always treated with dignity and respect by the nurses, 92% (2019: 95%) by the doctors.

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St. Michael’s Hospice (North Hampshire) and subsidiary company

Trustees’ annual report

For the year ended 31 March 2021

The Hospice worked hard during the year to prevent having to suspend all family visits and the guidance on visitors was regularly reviewed. While visiting restrictions did have to be put in place at the height of the crisis, families were never totally restricted from coming to the Hospice.

Enjoyed having meals with my husband. Excellent food, staff catered very generously to all our needs.

NB Data used here is from 89 returned surveys out of 197 which were posted and may not be truly reflective of all patients and their families that had accessed SMH services in the months leading up to their death in this survey period. It is no longer possible to benchmark our results as the survey, conducted by the Office for National Statistics, has not been run nationally since 2015.

2.Hospice at Home

The Hospice at Home service used to be called the St. Michael’s Hospice Community Palliative Care Team (SMHCPCT). The service is provided 365 days a year from 08:30 to 22:00. It allows patients to remain in their own homes, where the majority want to be, while still receiving the Hospice’s specialist palliative nursing and medical care. The service provided 1,709 (2020: 1,854) hours of care. 260 (2020: 229) new patients were referred to the service.

Evaluating the performance of Hospice at Home can also be done through the VOICES survey.

Naturally, the kind of intensive, round the clock care that is available on the IPU cannot be replicated in home visits so it is to be expected that some of these numbers will be lower than those on the IPU.

Part of our important work in the community also involves coordinating the care of those in their homes across all the clinical services and professionals who may be involved, for instance, GP surgeries, community nurses and social services. Last year, 92% (2019: 88%) stated that there was good communication between Hospice at Home and other professionals and 99% (2019: 99%) of respondents said that they felt the patient was treated with dignity and respect at all times.

My husband and I were extremely pleased with the amount of time given at each visit. The nurses never seemed in a hurry - this was so much appreciated.

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St. Michael’s Hospice (North Hampshire) and subsidiary company

Trustees’ annual report

For the year ended 31 March 2021

3.Therapies

Part of offering the full range of care and support to our community means providing therapeutic day services, physiotherapy, and occupational therapy as these play a vital role in patients’ wellbeing. The therapy team often work at home with patients from an early stage in their diagnosis, allowing them to build a bond of trust with patients and their families.

Covid prevented our therapeutic day services from being able to see out-patients in the Hospice, but the team carried on their support by telephone when in-person visits were not allowed. They quickly started video sessions where it was appropriate to continue to support patients with improving and managing their symptoms. At any one time, the Therapeutic Day Services is caring for around 93 (2020: 90) patients.

An important part of managing symptoms such as pain and anxiety is physiotherapy which can help the patient to adapt to any changes in their condition. Getting help with symptoms such as breathlessness and fatigue can allow patients to remain as physically able and independent as possible. There were 639 (2020: 1,140) face-to-face physiotherapy sessions during the year. To address being able to care for patients who couldn’t visit the weekly outpatient session, 119 sessions were conducted virtually including weekly yoga sessions.

Living with a progressive illness can be made easier by making adaptations to the environment and occupational therapy can support patients to do so. By providing patients and their families with solutions to challenges brought on by their deteriorating condition they can make the most of their time. As well as working with patients in their homes, occupational therapists work with patients on the IPU who are preparing for discharge to ensure their homes are adapted if necessary and providing equipment to help with needs. During the year, there were 878 (2020: 1,201) occupational therapy sessions.

4.Family Support Team

The Family Support team encompasses bereavement services, social work, chaplaincy, clinical psychology and complementary therapy.

Our social worker can provide expert advice and assistance to patients and families looking to access benefits and support outside the Hospice. 113 (2020: 101) new patients were referred to the social worker during the year.

The bereavement service for family members, including children and carers, is provided by both staff and volunteers. Due to the challenge of Covid and recruitment difficulties, we struggled to run this service to the standard that we would like during the year. However, at the end of the year we were able to recruit a high calibre bereavement lead to join the team and we look forward to better supporting our bereaved families in the future. We did run bereavement evenings as Covid restrictions lifted; we re-introduced monthly Bereavement Evenings in November 2020 and have continued to run them on a monthly basis in a Covid secure environment.

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St. Michael’s Hospice (North Hampshire) and subsidiary company

Trustees’ annual report

For the year ended 31 March 2021

The availability of a Chaplain to provide spiritual and religious care throughout the year has proved greatly beneficial to our patients and also to our staff. This care is designed to cater for all faiths and to those who would not see themselves as having a faith. Our Chaplain was particularly appreciated during the height of the Covid restrictions in the winter of 2020/21 when we did have to limit visitors on the IPU but he could be there for patients. During the year 265 chaplaincy visits were made.

The complementary therapy team work alongside the medical staff offering treatments to help symptom management - treatments are provided on the IPU and during this year patients and their families were also supported by telephone consultation. After consultation, bespoke aromatherapy oils were posted out and these treatments were also delivered to staff. Complementary therapists delivered 258 treatments during the year.

Other related activities

Environmental enhancements. Facilities management carried out several projects during the year to keep the Hospice buildings and grounds in good order. A full check was completed on all doors for fire safety purposes to ensure compliance with legislation and phase I and II of the project to replace doors was completed. Phase III will be completed in the first quarter of the new year.

In addition, a water risk assessment was completed to ensure compliance and an electrical wiring hotspot check was also carried out. Tree surgeons were employed to crown the tall trees which line our entrance way and new bumper rails were installed all around the IPU. New flooring was also laid in the Turner Centre.

Projects that had to be postponed during the year have all been rescheduled and will be completed in 2021.

Good that as a visitor I could get drinks and cake. Pleasant gardens, reception staff very friendly.

Staff feedback/engagement Monthly Hospice Forum meetings are held, chaired by the CEO, with all staff welcome and encouraged to attend. These continued during the year but were conducted by Zoom. A monthly staff bulletin is also emailed out and was added to the intranet for those staff working from home or furloughed.

Regretfully the Hospice was unable to hold any away days for staff, but these are already being planned for the next financial year.

Education and Training Our investment in Blue Stream Academy for our training and education needs was rewarded this year. When so much needed to be done virtually, staff could continue to access this vital resource

All staff have the opportunity for 1-2-1 sessions to discuss possible education and training pathways and professional development.

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St. Michael’s Hospice (North Hampshire) and subsidiary company

Trustees’ annual report

For the year ended 31 March 2021

Student placements are regularly offered to student nurses from the Universities of Southampton and Surrey. Student evaluation of their placements is very positive.

Through our Return to Nursing programme, we offer a flexible programme for those who have been out of nursing for some time. This continues to be a valuable source of new recruits.

Relative and Patient Feedback We gather feedback from relatives a few months after a death through the “Voices” survey which provides management with extremely valuable patient and carer feedback and is used to improve service provision. Of those who complete the survey, 100% (2020: 94%) would recommend our services. As a way to gather more immediate feedback, and to involve patients as well as relatives, we also have ‘Your Experience Matters to Us’ postcards throughout the IPU which can be filled in and deposited into a box anonymously. From these postcards, 96% (2019: 97%) would recommend our services.

Website development The Hospice had committed to a new website at the start of the financial year and that work was carried out as planned. The new website has better facilities for a staff intranet portal, sharing of resources with other health care professionals, as well as enhanced features to increase revenue. The site launched in January 2021 and by the end of the year there was a 50% increase in the number of people signing up for an event who added a donation to their entry. There was also a significant increase in t-shirt sales.

Income generation

The Hospice relies on a wide range of income generation activities to fund the above services. In a year without Covid funding, over 70% of our costs are paid for by community fundraising income. North Hampshire CCG continues to provide funding to support our IPU and community services.

The development of future services and the implementation of our strategy rely on our ability to generate significant additional funding. Whilst all our services relieve pressure on our NHS colleagues by preventing hospital admissions, there has not been a significant increase in the substantive yearly grant from the NHS for a number of years. That said, they have made additional yearly one-off payments for certain initiatives. This of course makes the sustainability of services more challenging. Therefore, we rely on our fundraising activities to provide the majority of income for current and future services.

Fundraising in 2020/21 has seen the fundraising department achieve revenues of £904,000 (2020: £994,000), a decrease of 9% against the previous year but a remarkable achievement in a year when so much was cancelled.

There was an increase in legacy income to £529,000 (2020: £447,000) and we continue to increase awareness of Gifts in Wills. Net profit from the lottery and scratch cards fell to £167,000 (2020: £195,000). Our scratch cards are sold at in our stores and at events so the decrease in net profit was to be expected.

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St. Michael’s Hospice (North Hampshire) and subsidiary company

Trustees’ annual report

For the year ended 31 March 2021

During the year, all the Hospice’s scheduled events were cancelled except for the autumn Golf Day. In their place, virtual events were created where possible and these were well supported by the community. All the fundraising events held in the community were also cancelled along with collections and campaigns.

We are also supported by The Friends of St. Michael’s Hospice who have been fundraising for us since inception of the Hospice. Their contribution significantly increased this year -- despite the cancellation of their events -- due to an extraordinary appeal they held in April 2020. In addition, in March 2021 they launched an appeal to increase regular givers. Their income was in excess of £250,000 (2020: £85,000).

Overall fundraising made a contribution of £1,179,000 (2020: 1,211,000).

Code of fundraising practice We are registered with the Fundraising Regulator and comply with all the relevant standards set out in the Code of Fundraising Practice. This report covers the requirements charities must follow as set out in the Charities Act 2016.

The charity mainly generates funds from its existing supporter database and does not utilise third-party professional fundraisers. All street collections and door-to-door fundraising was cancelled during the year due to Covid. During the year the charity changed its basis for gaining consent to contact people from an opt-in basis to a legitimate interest basis. This was undertaken after extensive consultation with an external company specialising in GDPR compliance.

We received one complaint in the financial year and it was from a store customer complaining about being challenged for not wearing a mask. It was dealt with as soon as it was received and to the satisfaction of the complainant by our Head of Retail without needing to be escalated. Had it not been satisfactorily dealt with by the Head of Retail, it would have been escalated to the SLT. The Head of Retail regularly reports to the SLT and Trustees so any lessons regarding complaints can be learnt.

The fundraising team also receive weekly reports from the Fundraising Preference Service ensuring that they can swiftly act on anyone who has requested not to hear from us. There have been no requests through this service since 2017.

Vice Patrons Initiative In recognition of the significant achievements by individual supporters, we honour those individuals as our Vice Patrons. Fifty-three supporters were recognised in the current year (2020: 54). The post is for one year and is awarded annually.

Retail . Our retail sales were affected by Covid from the middle of March 2020 through to middle of April 2021. During this time, the shops were closed for extensive periods and when open the operations were affected by the need to restrict the number of staff, volunteers and customers who could be in the stores at any one time. Total retail income was £594,000 (2020: £1,776,000). Included in this income is £79,000 (2020: £2,000) from the success story for the year, online sales

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St. Michael’s Hospice (North Hampshire) and subsidiary company

Trustees’ annual report

For the year ended 31 March 2021

through eBay. In addition, a successful business interruption insurance claim of £321,000 was made for the first lockdown. Unfortunately, when the second lockdown happened the insurance contract had been renewed and the business interruption clause updated to specifically exclude pandemics.

Retail expenditure for the year was £1,290,000 (2020: £1,336,000), resulting in a loss of £375,000 (2020: profit £440,000). This loss is mitigated by furlough income in respect of retail staff of £238,000.

Volunteer engagement Volunteer support for the Hospice in all appropriate areas of activity has historically always been very strong. This year we began standing our volunteers down for their own safety and the safety of our staff and patients from March 2020. Volunteers remained away until the summer when our retail operations reopened and those that were comfortable doing so returned to support those operations. We have since also welcomed back our gardening volunteers as well.

Many services could not be provided without volunteer input, and others would suffer staff shortages or additional staff costs. During the year volunteers contributed 14,958 hours (2020: 80,172 hours) of their time. The notional value of this equates to £196,700 (2020: £791,000). The notional value is determined by costing each role as if it were undertaken by a paid member of staff.

St. Michael’s Home Care As was detailed fully in our report for the financial year 2019/20, this subsidiary was wound up in December 2020 was in administration in December 2020 and entered liquidation on 7 January 2021.

In April 2020, before the seriousness of Covid was known, the Calleva Foundation provided £20,000 of funding to try and help the business through what was perceived as a short-term problem. However, the Covid issues proved to be long term and resulted in the closure of the business.

The business is in liquidation and there is no information available as to if or how much is available to pay creditors.

Financial review, Reserves Policy and Going Concern

Financial Review

The Hospice had a challenging year, but thanks to the support of the Government in the form of funding from NHS England, retail grants via Local Authorities, the furlough scheme and Hospice held insurance policies the result before gains in the value of investments is a surplus of £591,000. As can be seen below, without the afore mentioned one off funding, there would have been a deficit of £1,046,000.

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St. Michael’s Hospice (North Hampshire) and subsidiary company

Trustees’ annual report

For the year ended 31 March 2021

"Normal"
Activities		 Government
Funding		 Total 2020
£'000 £'000 £'000 £'000
Income
Donations and legacies 1,609 - 1,609 1,442
Charitable activities 1,000 1,637 2,637 912
Retail 914 - 914 1,768
Home Care including gain on 447 - 447 741
disposal
Lottery and Events 354 - 354 460
Investments 94 - 94 106
Total income
 4,418 1,637 6,055 5,429
Expenditure
Hospice 5,001 - 5,001 5,187
Home Care 463 - 463 873
Total expenditure
 5,464 - 5,464 6,060
Income less expenditure (1,046) 1,637 591 (631)

Total Hospice income for the year was £3,971,000 compared with £4,687,000 the previous year – a decrease of £716,000. There is an increase in donations of £85,000, due in part to an appeal by and other income from The Friends of St Michael’s Hospice which raised in excess of £250,000. Legacies increased by £82,000.

The most significant drop in income was retail income due to the three prolonged periods of lockdown when the shops were closed. The total decrease was £1,175,000, although there was a successful business interruption claim of £321,000 and online income grew by £77,000 during the year.

Hospice expenditure of £5,001,000 was £185,000 less than the previous years. This was a combination of staff savings due to a redundancy programme, furlough savings and rent savings due to the generosity of several our landlords offering a rent holiday.

Investments

The Hospice invests in three funds which are managed by CCLA Fund Manager Ltd. The investment committee meets with the fund manager annually to discuss the investments and their continued suitability. During the year £300,000 was transferred from the Deposit Fund and invested in the Ethical Fund. The total returns for the year can be summarised:

Return Benchmark
Charities Investment Fund 24.31% 22.90%
Charities Ethical Fund 23.87% 22.90%
Charities Deposit Fund 0.08% -0.04%

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St. Michael’s Hospice (North Hampshire) and subsidiary company

Trustees’ annual report

For the year ended 31 March 2021

Reserves Policy

General Reserves : The charity aims to hold sufficient general reserves to protect against a sudden short-term decline in income so that a full range of services can continue to be provided. If the level of income is not restored, then the Trustees have time to plan and implement change in a controlled way. The Trustees have reviewed the risks associated with income and expenditure and believe that cover for six months’ expenditure, net of guaranteed income, should be sufficient to allow this to happen.

Income generation is becoming increasingly challenging for all charities and the Trustees also hold reserves to invest in the short to medium term income generation strategy.

The policy is reviewed each year and the target level of general reserves is calculated at the end of the financial year based on the budget for the coming year. The Finance Committee meet regularly to monitor results and future forecasts.

The target for 2021-22 is £3,047,000. On the 31 March 2021, the actual general reserves (excluding fixed assets, but not land) was £4,421,000. However, it is deemed prudent to discount the fair value reserve by 50%, giving a surplus of £682,000.

Due to the uncertainties around future income as a result of the Covid 19 pandemic, excess reserves will not be invested in additional services until the organisation has a better understanding of results from Income Generation. The reserves policy is based on business as usual scenario and does not take into account the potential further detrimental impact of Covid19. The trustees consider it to be prudent to hold additional reserves at this time.

Designated Reserves : The Trustees have created three designated reserves during the year.

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St. Michael’s Hospice (North Hampshire) and subsidiary company

Trustees’ annual report

For the year ended 31 March 2021

Restricted Reserves : There are three types of restricted reserves.

Investment Policy : St. Michael’s Hospice’s articles of association give the trustees the power to make any investments considered appropriate. The responsibility for the investment policy is delegated to the Investment Committee which follows a policy of investing surplus funds in long term assets such as equities, bonds and property and places cash on deposit to further the Hospice’s aims by generating investment income and capital growth and as a reserve against any future shortfall in income. The funds are invested with CCLA, a charity specialist investor, in their COIF Charities Investment and Ethical Investment Funds with a view to generate an income yield together with potential capital growth, dependent on market conditions. The Finance Committee reviews the investment policy annually as well as the performance of CCLA. The Hospice seeks to balance maximising long-term returns and avoiding undue risk and volatility in capital values.

Going Concern

The Trustees have reviewed the budgets and plans for the period to 31 August 2022 and are content that based on what they believe is the worst-case scenario, the Hospice is a going concern.

Principal risks and uncertainties

The Hospice has monitoring systems in place for financial, clinical, and organisational risk. The CEO and Senior Leadership Team continually monitor and formerly undertake periodic reviews of the Risk Management Register before sharing annually with Trustees, A scheme of scoring is used and high level risks, defined as those which have a risk of 20+ after mitigating factors, are reported to the Board, by the CEO, on a quarterly basis and the Risk Management Register is reviewed by the Board twice a year.

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St. Michael’s Hospice (North Hampshire) and subsidiary company

Trustees’ annual report

For the year ended 31 March 2021

The main risks at the 31 March 2021 were:

  1. Nurse Recruitment and Retention

With over 38,000 nursing vacancies and no national NHS workforce strategy in place St. Michaels like many are finding recruitment of nursing staff enormously challenging. Competing against NHS trusts who have dedicated recruitment teams has dictated St. Michael’s take a pragmatic approach to successful future recruitment.

The Hospice has fully revised its management structure, terms and conditions, and development opportunities for its clinical staff to ensure we are competitive with other local health care providers. An investment in creating videos with its current staff to demonstrate the advantages of working here are fully marketed on its website.

During the year, funding from a trust was secured to be able to offer a 3-year Clinical Nurse Specialist post, from April 1, 2021. This is a great boost to the skills and reputation of the Hospice.

  1. Insufficient income : The impact of the COVID-19 pandemic has yet to be fully felt by St.

Michael’s with a great deal of unknowns looking ahead. The last year saw a catastrophic impact on traditional income generation methods with huge falls in retail, fundraising income this was mitigated by income from one off COVID-19 government funding, insurance policy and other successful grant applications secured.

Any loss in statutory income may result in a reduction in services, loss of jobs and Hospice closure.

A new Income Generation strategy has been adopted to identify and develop income streams whilst enhancing opportunities with existing ones. A new Marketing and Communications strategy will be developed to underpin the Income Generation strategy whilst extending the reach of the donor base. It will be assisted by maintaining effective spending controls, budgeting, and reserves management.

  1. Clinical IT Systems : Poor care planning, ineffective care, unsafe services and patient data not shared with other care providers. Increased drug errors as a result of multiple systems in place and no audit trail of data updates and deletions.

An information communication technology (ICT) strategy being developed to address the increasing technological requirements concerning patient data and use of shared Hospice and HHFT IT systems in conjunction with the wider healthcare system. Back-up measures are in place if systems fail, and secure login is required for all systems – clinical and non-clinical.

17

St. Michael’s Hospice (North Hampshire) and subsidiary company

Trustees’ annual report

For the year ended 31 March 2021

Plans for the future

During 2020, our new strategy for the next five years was launched. The overarching aim of St. Michael’s Hospice is to ‘Increase the reach of Hospice services and the quality of our care’. The SLT kept these four goals in mind during the year and ensured that at all times the Hospice was working towards achieving them.

The response of our staff, volunteers and community to support the Hospice during this last year proved that the Hospice can meet the toughest of hurdles and these goals will ensure we can continue to provide our services well into the future.

Structure, governance and management

The company was established on 5 March 1991 under a memorandum of association which set down the objects and powers of the charitable company and is governed under its articles of association and was registered as a charity on 10 May 1991.

18

St. Michael’s Hospice (North Hampshire) and subsidiary company

Trustees’ annual report

For the year ended 31 March 2021

Structure and Governance

St Michael’s Hospice is governed by the Board with each member in accordance with the Charities Act serving as a trustee. The Board is responsible for approving the strategic plan and the annual budget and ensuring that sufficient resources are provided to allow the Hospice to fulfil the purpose for which it was established.

All trustees give their time voluntarily and receive no benefits from the charity. The trustee board meets quarterly and there are three board sub-committees: Finance and General Purpose (including remuneration and investment policy), Income Generation, and Clinical Governance.

Appointments to the Board are ratified at the subsequent annual general meeting.

The current and future trustee base is seen as representing a good cross-section of accounting, medical, business and corporate governance, and local community input.

Management

Operational activities are delegated to employed staff via the Chief Executive who is responsible to the Board for overall management of the business and the provision of care and services which in the role of Responsible Individual meet the requirements of the Health and Social Care Act 2008 and comply with guidance provided by the Care Quality Commission.

The SLT at St. Michael’s Hospice ensures strategic direction is maintained and is led by the Chief Executive. Members of the team are:

The Management Team are responsible for dealing with the day-to-day operations of St. Michael’s Hospice. The team is led by the Chief Executive and, as well as the members of the SLT include the:

19

St. Michael’s Hospice (North Hampshire) and subsidiary company

Trustees’ annual report

For the year ended 31 March 2021

The Chief Executive meets regularly with the Chair and other trustees to discuss issues and progress against objectives.

Appointment of trustees

New trustees are identified according to skills required and vacancies arising. Two new trustees were recruited during the year with three leaving during the year. One trustee was appointed and resigned during the year. We are currently recruiting for two more trustees.

New trustees are proposed by either internal or external recommendation or recruitment and are interviewed by the Chair and another trustee. All trustees are then invited to comment confidentially on suitability prior to a vote of the board of trustees being taken.

Trustee induction and training

Trustees receive a comprehensive briefing on the role from the Chairman and Chief Executive and have access to an induction pack published by Hospice UK along with documentation on the Hospice’s policies and procedures. Trustees are expected to attend the same Hospice induction programme completed by all staff and volunteers.

During the year, all board meetings were conducted by video to reduce the risk of infection to the Hospice although during the summer a number of sub-committee meetings were conducted at the Hospice.

As from 2020, all Trustees now undergo formal annual appraisals, carried out by the Board Chairman.

Related parties and relationships with other organisations

St. Michael’s Hospice works closely with Hampshire Hospitals NHS Foundation Trust and North Hampshire Clinical Commissioning Group.

St. Michael’s Hospice also works in partnership with Odiham Cottage Hospital Trust (OCH) regarding the provision of befriending services as well as enhanced Hospice at Home care within that area. OCH provided a total of £79,000 (2020: £60,000) of income to the Hospice during the year, including a donation of £25,000.

St. Michael’s Hospice is a member of Hospice UK and works with regional hospice Chief Executives, sharing data and experiences.

20

St. Michael’s Hospice (North Hampshire) and subsidiary company

Trustees’ annual report

For the year ended 31 March 2021

Remuneration policy for key management personnel

The Finance Committee meets to establish the Chief Executive’s remuneration package on an annual basis.

Overall salary funding is part of the annual budget process, and within that approved budget the Chief Executive agrees with the finance committee the individual awards for key personnel.

Statement of responsibilities of the trustees

The trustees (who are also directors of St. Michael’s Hospice for the purposes of company law) are responsible for preparing the trustees’ annual report 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 group and of the incoming resources and application of resources, including the income and expenditure, of the charitable company or group for that period. In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the trustees are aware:

21

St. Michael’s Hospice (North Hampshire) and subsidiary company

Trustees’ annual report

For the year ended 31 March 2021

The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Members of the charity guarantee to contribute an amount not exceeding £10 to the assets of the charity in the event of winding up. The total number of such guarantees for 2021 was 35 (2020: 34). The trustees are members of the charity, but this entitles them only to voting rights. The trustees have no beneficial interest in the charity.

Auditor

Sayer Vincent LLP was re-appointed as the charitable company's auditor during the year and has expressed its willingness to continue in that capacity.

The trustees’ annual report which includes the strategic report has been approved by the trustees on 9 August 2021 and signed on their behalf by

A Chancellor Chairman

22

Independent auditor’s report

To the members of

St. Michael’s Hospice (North Hampshire)

Opinion

We have audited the financial statements of St Michael’s Hospice (North Hampshire) (the ‘charitable company’) and its subsidiary (the ‘group’) for the year ended 31 March 2021 which comprise the consolidated statement of financial activities, the group and parent charitable company balance sheets, the consolidated statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 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 group financial statements section of our report. We are independent of the group and parent charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’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 St Michael’s Hospice (North Hampshire)'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.

23

Independent auditor’s report

To the members of

St. Michael’s Hospice (North Hampshire)

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 other information comprises the information included in the trustees’ annual report, including the strategic report, other than the group financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the group 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. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the group financial statements or our knowledge obtained in the course of 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 this gives rise to a material misstatement in the group financial statements themselves. 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.

Opinions 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 the knowledge and understanding of the group and the parent charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ annual report, including the strategic report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 and Charities Act 2011 requires us to report to you if, in our opinion:

24

Independent auditor’s report

To the members of

St. Michael’s Hospice (North Hampshire)

Responsibilities of trustees

As explained more fully in the statement of trustees’ responsibilities set out in the trustees’ annual report, the trustees (who are also the directors of the parent 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

We have been appointed auditor under the Companies Act 2006 and section 151 of the Charites Act 2011 and report in accordance with those Acts.

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 auditor’s report that includes our 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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud are set out below.

Capability of the audit in detecting irregularities

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

25

Independent auditor’s report

To the members of

St. Michael’s Hospice (North Hampshire)

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

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 and section 144 of the Charities Act 2011 and regulations made under section 154 of that Act. 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 auditor’s report and for no other purpose.

26

Independent auditor’s report

To the members of

St. Michael’s Hospice (North Hampshire)

To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Fleur Holden (Senior statutory auditor)

3 September 2021

for and on behalf of Sayer Vincent LLP, Statutory Auditor Invicta House, 108-114 Golden Lane, LONDON, EC1Y 0TL

Sayer Vincent LLP is eligible to act as auditor in terms of section 1212 of the Companies Act 2006

27

St. Michael's Hospice (North Hampshire)

Consolidated statement of financial activities (incorporating an income and expenditure account)

For the year ended 31 March 2021

Note
Income from:
2
3
4
4
7
5
6
6
6
8
Reconciliation of funds:
Discontinued operations
Home Care
Discontinued operations
Home Care
Investments
Total income
Expenditure on:
Cost of raising funds
Total funds brought forward
Total funds carried forward
Net income/(expenditure) for the year and net
movement in funds
Raising funds
Total expenditure
Net income/(expenditure) before net
gains/(losses) on investments
Charitable activities
Specialist palliative care
Net gains/(losses) on investments
Retail
Retail
Lottery and Events
Gains on disposal of discontinued operations
Donations and legacies
Charitable activities
Other trading activities
Specialist palliative care		 Unrestricted
£
1,319,520
1,660,447
914,106
354,016
419,927
27,222
94,093		 Restricted
£
289,590
975,685
-
-
-
-
-		 2021
Total
£
1,609,110
2,636,132
914,106
354,016
419,927
27,222
94,093		 Unrestricted
£
1,379,687
912,148
1,768,538
459,590
741,226
-
105,627		 2020
Restricted
Total
£
£
61,876
1,441,563
-
912,148
-
1,768,538
-
459,590
-
741,226
-
-
-
105,627
61,876
5,428,692
-
1,336,260
-
691,560
150,000
873,115
257,320
3,158,467
407,320
6,059,402
(345,444)
(630,710)
-
(98,457)
(345,444)
(729,167)
1,040,375
4,870,504
694,931
4,141,337
4,789,331 1,265,275 6,054,606 5,366,816
1,290,216
598,169
463,178
1,760,445		 -
-
-
1,352,251		 1,290,216
598,169
463,178
3,112,696		 1,336,260
691,560
723,115
2,901,147
4,112,008 1,352,251 5,464,259 5,652,082
677,323
542,049		 (86,976)
-		 590,347
542,049		 (285,266)
(98,457)
1,219,372
3,446,406		 (86,976)
694,931		 1,132,396
4,141,337		 (383,723)
3,830,129
4,665,778 607,955 5,273,733 3,446,406

All the above results, other than those stated under discontinued operations, continued throughout the year.There were no other recognised gains or losses other than those stated above. Movements in funds are disclosed in Note 22 to the financial statements.

28

St. Michael's Hospice (North Hampshire)

Company no. 02588395

Balance sheets

As at 31 March 2021

Note
Fixed assets:
13
14
Current assets:
17
Liabilities:
18
21
22
Total unrestricted funds
Debtors
Funds:
Restricted income funds
Unrestricted income funds:
Fair value reserve
General funds
Designated funds
Creditors: amounts falling due within one year
Net current assets
Total net assets
Investments
Cash at bank and in hand
Tangible assets
Total funds		 2021
2020
£
£
862,922
952,657
3,459,108
2,617,059
4,322,030
3,569,716
727,630
445,675
746,872
701,638
1,474,502
1,147,313
(522,799)
(575,692)
951,703
571,621
5,273,733
4,141,337
607,955
694,931
1,384,177
842,128
165,000
-
3,116,601
2,604,278
4,665,778
3,446,406
5,273,733
4,141,337
The group		 2021
2020
£
£
862,922
952,657
3,459,108
2,617,059
4,322,030
3,569,716
727,630
445,675
746,872
701,638
1,474,502
1,147,313
(522,799)
(575,692)
951,703
571,621
5,273,733
4,141,337
607,955
694,931
1,384,177
842,128
165,000
-
3,116,601
2,604,278
4,665,778
3,446,406
5,273,733
4,141,337
The group		 2021
2020
£
£
862,922
952,657
3,459,108
2,617,060
4,322,030
3,569,717
727,630
382,296
746,872
674,155
1,474,502
1,056,451
(522,799)
(484,831)
951,703
571,620
5,273,733
4,141,337
607,955
694,931
1,384,177
842,128
165,000
-
3,116,601
2,604,278
4,665,778
3,446,406
5,273,733
4,141,337
The charity		 2021
2020
£
£
862,922
952,657
3,459,108
2,617,060
4,322,030
3,569,717
727,630
382,296
746,872
674,155
1,474,502
1,056,451
(522,799)
(484,831)
951,703
571,620
5,273,733
4,141,337
607,955
694,931
1,384,177
842,128
165,000
-
3,116,601
2,604,278
4,665,778
3,446,406
5,273,733
4,141,337
The charity
4,322,030
727,630
746,872		 3,569,716
445,675
701,638		 4,322,030
727,630
746,872		 3,569,717
382,296
674,155
1,474,502
(522,799)		 1,147,313
(575,692)		 1,474,502
(522,799)		 1,056,451
(484,831)
951,703 571,621 951,703 571,620
5,273,733 4,141,337 5,273,733 4,141,337
607,955
1,384,177
165,000
3,116,601		 694,931
842,128
-
2,604,278		 607,955
1,384,177
165,000
3,116,601		 694,931
842,128
-
2,604,278
4,665,778 3,446,406 4,665,778 3,446,406
5,273,733 4,141,337 5,273,733 4,141,337

Approved by the trustees on 9 August 2021 and signed on their behalf by

A Chancellor Chairman

29

St. Michael's Hospice (North Hampshire)

Consolidated statement of cash flows

For the year ended 31 March 2021

Note 2021 2020
£ £ £ £
Cash flows from operating activities
Net cash provided by/(used in) operating activities 23 251,141 (209,321)
Cash flows from investing activities:
Dividends and interest from investments 94,093 105,627
Purchase of fixed assets - (53,973)
Purchase of investments (300,000) -
Proceeds from sale of investments - 400,000
Net cash provided by investing activities (205,907) 451,654
Change in cash and cash equivalents in the year 45,234 242,333
Cash and cash equivalents at the beginning of the year 701,638 459,305
Cash and cash equivalents at the end of the year 746,872 701,638

30

St. Michael's Hospice (North Hampshire)

Notes to the financial statements

For the year ended 31 March 2021

a) Statutory information

The registered office address is Basil de Ferranti House, Aldermaston Road, Basingstoke, Hampshire, RG24 9NB.

b) Basis of preparation

The financial statements have been prepared in accordance with 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)- (Charities SORP FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy or note.

These financial statements consolidate the results of the charitable company and its wholly-owned subsidiary St. Michael's Home Care Limited on a line by line basis until the date of liquidation. Transactions and balances between the charitable company and its subsidiary have been eliminated from the consolidated financial statements. Balances between the companies are disclosed in the notes of the charitable company's balance sheet. 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 charitable company meets the definition of a public benefit entity under FRS 102.

d) Going concern

The trustees consider that there are no material uncertainties about the charitable company's ability to continue as a going concern.

The trustees do not consider that there are any sources of estimation uncertainty at the reporting date, and taking the impact of the Covid-19 pandemic into account, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next reporting period.

e) Discontinued operations

St Michael's Home Care Limited entered liquidation on 7 January 2021 and is in the process of being wound up. Amounts due to the charity were written off in full during the year. Income and expenses for the year to 7 January 2021 have been included in the accounts on a line by line basis. No balance sheet items are included in the accounts as at 31 March 2021.

f) Income

Income is recognised when the charity 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 and other grants, whether ‘capital’ grants or ‘revenue’ grants, is recognised when the charity 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 the amount can be measured reliably and is not deferred.

Income from insurance claims is recognised when the income criteria is met and the value is considered measurable.

31

St. Michael's Hospice (North Hampshire)

Notes to the financial statements

For the year ended 31 March 2021

1 Accounting policies (continued)

f) Income (continued)

For legacies, entitlement is taken as the earlier of the estate accounts have been drafted and notification has been made by the executor(s) to the charity that a distribution will be made or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the charity has been notified of the executor’s intention to make a distribution. Where legacies have been notified to the charity, or the charity is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is a treated as a contingent asset and disclosed if material.

On March 11 2020 the charity became eligible for £230,000 of retail, hospitality and leisure grants in respect of shops with a rateable value up to £51,000. The income was received in 2020/21 and relates to the period from 1 April onwards. The trustees have opted to recognise the grants in the financial year to 31 March 2021 based on an entitlement date of 1 April 2020 as per the guidance issued by the Department for Business, Energy and Industrial Strategy as that is the period to which income relates.

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

g) Interest and dividends receivable

h) Fund accounting

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.

Unrestricted funds are donations and other incoming resources received or generated for the charitable purposes.

Designated funds are funds allocated by the trustees for specific projects or costs.

i) Expenditure and irrecoverable VAT

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:

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

32

St. Michael's Hospice (North Hampshire)

Notes to the financial statements

For the year ended 31 March 2021

j) Allocation of support costs

Resources expended are allocated to the particular activity where the cost relates directly to that 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 the cost of raising funds.

Support costs are re-allocated to each of the activities on the following basis which is an estimate, based on the headcount associated with the attributable activity.

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. They are allocated on the following basis:

k) Operating leases

Rental charges are charged on a straight line basis over the term of the lease.

l) Tangible fixed assets

Tangible fixed assets are capitalised where the purchase price exceeds £10,000. 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 provided on all tangible fixed assets other than land, at rates calculated to write down the cost of each asset to its estimated residual value over its expected useful life. The useful lives are as follows:

20 years Between 4 & 5 years

m) Investments

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, whether realised or unrealised, are combined and shown in the heading ‘Net gains/(losses) on investments’ in the statement of financial activities. The charity does not acquire put options, derivatives or other complex financial instruments.

n) Stocks

Stocks of goods for resale in the shops are not included in the accounts. It is deemed that the effort required to value the high volume and low individual value of the stock outweighs any benefit of including stock in the financial statements.

33

St. Michael's Hospice (North Hampshire)

Notes to the financial statements

For the year ended 31 March 2021

1 Accounting policies (continued)

o) Debtors

Trade and other debtors 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.

p) Cash at bank and in hand

Cash at bank and cash 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.

q) Creditors and provisions

Creditors and provisions are recognised where the charity 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 and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

r) Pensions

The charity contributes to the NHS Superannuation pension scheme for certain qualifying employees. The assets of the scheme are held separately from those of the charity in an independently administered fund.

The pension charge represents contributions payable by the charity to the fund. It is a multi-employer scheme and the charity is unable to identify its share of the underlying assets and liabilities. It is therefore accounted for as though it were a defined contribution scheme.

The group also provides a defined contribution pension scheme for employees other than those within the NHS superannuation pension scheme and contributes up to 6% of basic salary. Contributions are recognised when due.

34

St. Michael's Hospice (North Hampshire)

Notes to the financial statements

For the year ended 31 March 2021

Income from donations and legacies
Total income from charitable activities
Income from North Hampshire Clinical
Commissioning Group
Income from Odiham Cottage Hospital
Other income
Covid 19 related funding from HM
Government, NHSE and Local Authorities
Donations
Legacies
Income from charitable activities		 Unrestricted
£
790,386
529,134		 £
289,590
-
Restricted		 2021
Total
£
1,079,976
529,134		 Unrestricted
£
932,465
447,222		 £
61,876
-
Restricted		 2020
Total
£
994,341
447,222
1,319,520 289,590 1,609,110 1,379,687 61,876 1,441,563
Unrestricted
£
880,023
79,377
660,820
40,227		 £
-
-
975,685
-
Restricted		 2021
Total
£
880,023
79,377
1,636,505
40,227		 Unrestricted
£
837,201
60,416
-
14,531		 £
-
-
-
-
Restricted		 2020
Total
£
837,201
60,416
-
14,531
1,660,447 975,685 2,636,132 912,148 - 912,148

Covid Funding was received from a number of sources, furlough income from HM Government, support for Hospices from NHSE and Local Authority Grants for retail premises.

The NHSE (NHS England) 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.

4 Income from other trading activities

Income from other trading activities
Lottery
Events
Retail
Retail Business Interruption Insurance Claim
Income		 Unrestricted
£
593,280
320,826
268,511
85,505		 £
-
-
-
-
Restricted		 2021
Total
£
593,280
320,826
268,511
85,505		 Unrestricted
£
1,768,538
-
313,322
146,268		 2020
Total
£
£
-
1,768,538
-
-
-
313,322
-
146,268
-
2,228,128
Restricted
1,268,122 - 1,268,122 2,228,128

The retail operation, excluding online sales, suffered from three lockdowns during the year; the first from 22 March 2020 with a phased re-opening between 26 June and 28 August 2020, the second from 2 November 2020 until 2 December 2020, the final lockdown was from 25 December 2020 until 12 April 2021.

Trading losses for the first lockdown, from 22 March to 15 June 2020 were covered by the business interruption clause in the Hospice's insurance policy. This clause was revoked by the Insurers when the insurance renewed in August 2020.

Income from investments
Bank interest
COIF Charities Investment Funds		 Unrestricted
£
92,851
1,242		 £
-
-
Restricted		 2021
Total
£
92,851
1,242		 Unrestricted
£
103,901
1,726		 2020
Restricted
Total
£
£
-
103,901
-
1,726
-
105,627
94,093 - 94,093 105,627

35

St. Michael's Hospice (North Hampshire)

Notes to the financial statements

For the year ended 31 March 2021

6a Analysis of expenditure - current year

Staff costs (Note 9)
Direct care costs
Direct cost of generating funds
Premises
Legal and professional services
Equipment, supplies and consumables
Depreciation & dilapidations
Other costs
Support costs (note 1j)
Governance costs
Total expenditure 2021
Total expenditure 2020		 Raising funds Raising funds Charitable
activities		 Discontinued
operations		 Support and
governance
costs
£
352,898
-
-
6,284
34,579
81,954
3,831
22,764		 2021
Total
2020
Total
£
£
4,077,232
4236720
113,022
146117
231,397
435726
379,177
447573
155,079
193243
361,711
301456
97,743
263719
48,898
34848
5,464,259
6,059,402
-
-
-
-
5,464,259
6,059,402
Retail
£
701,737
-
70,666
281,453
2,533
59,651
22,413
14,341		 Cost of
raising funds
£
357,144
132,742
27,317
5,123
25,095
-
-		 Specialist
palliative care
£
2,289,894
113,022
-
63,528
87,585
180,861
71,499
8,196		 Home Care
£
375,559
-
27,989
595
25,259
14,150
-
3,597
1,152,794
128,235
9,187		 547,421
41,561
9,187		 2,814,585
279,737
18,374		 447,149
16,029
-		 502,310
(465,562)
(36,748)
1,290,216 598,169 3,112,696 463,178 -
1,336,260 691,560 3,158,467 873,115 -

Support and governance costs above include £36,748 relating to governance, being £14,775 of staff costs, £21,127 legal and professional services and £846 of other support costs.

36

St. Michael's Hospice (North Hampshire)

Notes to the financial statements

For the year ended 31 March 2021

6b Analysis of expenditure - prior year

Staff costs (Note 9)
Direct care costs
Direct cost of generating funds
Premises
Legal and professional services
Equipment, supplies and consumables
Depreciation & dilapidations
Other costs
Support costs (note 1j)
Governance costs
Total expenditure 2020
Total expenditure 2019		 Raising funds Raising funds Charitable
activities		 Discontinued
operations		 Support and
governance
costs
£
373,689
-
-
5,776
23,021
68,108
9,435
17,230		 2020
Total
£
4,236,720
146,117
435,726
447,573
193,243
301,456
263,719
34,848
Retail
£
695,536
-
139,168
363,278
11,035
50,368
17,979
1,706		 Cost of
raising funds
£
357,205
-
218,540
27,171
6,827
25,407
-
668		 Specialist
palliative care
£
2,177,581
146,117
-
50,413
96,886
140,198
236,305
9,841		 Home Care
£
632,709
-
78,018
935
55,474
17,375
-
5,403
1,279,070
52,024
5,166		 635,818
45,411
10,331		 2,857,341
280,465
20,661		 789,914
78,036
5,165		 497,259
(455,936)
(41,323)		 6,059,402
-
-
1,336,260 691,560 3,158,467 873,115 - 6,059,402
1,154,707 711,535 3,062,913 1,002,311 -

Support and governance costs above include £41,323 relating to governance, being £14,141 of staff costs, £20,113 legal and professional services and £7,069 of other support costs.

37

St. Michael's Hospice (North Hampshire)

Notes to the financial statements

For the year ended 31 March 2021

7 Discontinued operations

On 7 January 2021 St Michael's Home Care Ltd entered liquidation. The loss for the period to this date was £27,222. There were £57,800 of net assets transferred to the Liquidator. At the end of the financial year the liquidation process was ongoing with no indication as to whether there would be funds available to creditors.

8 Net income/(expenditure) for the year

This is stated after charging:

This is stated after charging:
2021 2020
£ £
Depreciation 89,735 255,715
Operating lease rentals:
Property 251,555 278,775
Other 15,618 14,685
Auditor's remuneration (excluding VAT):
Audit - Group and subsidiary company audits 13,000 15,500
Additional costs for 2020 audit 4,500 -
Other services - Corporation tax services 950 750

Staff costs were as follows:

Salaries and wages
Social security costs
Employer’s contribution to pension schemes
Termination costs - paid
Other forms of employee benefits		 2021
2020
£
£
3,404,993
3,687,771
238,176
240,013
288,724
277,969
32,012
28,155
113,327
2,812
4,077,232
4,236,720

The following number of employees received employee benefits (excluding employer pension costs and employers national insurance), of over £60,000 during the year as follows:

2021 2020
No. No.
£60,000 - £69,999 1
£70,000 - £79,999 1 2
£80,000 - £89,999 1
£90,000 - £99,999 1 -

The total employee benefits including pension contributions and national insurance of the key management personnel were £488,326 (2020: £365,519). In 2020 there were two new members of the Senior Leadership team whose costs were included for part of that year and are included for the full year in 2021. The Director of Medical Services, who is employed by the Hospice was replaced by the Medical Director who is paid via a Service Level Agreement (SLA) with Hampshire Hospital Foundation Trust (HHFT). The HHFT SLA costs are included in the above figure.

During the year eleven employees received termination payments (2020: two).

The charity trustees were not paid or receive 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). During the year, no expenses were reimbursed to trustees (2020: £nil).

38

St. Michael's Hospice (North Hampshire)

Notes to the financial statements

For the year ended 31 March 2021

10 Staff numbers

The average number of employees (head count based on number of staff employed) during the year was as follows:

Support
Governance
Specialist palliative care
Raising funds
Staff in subsidiary company		 2021
2020
No.
No.
42.5
44.3
27.4
52.0
70.0
77.2
10.5
12.7
0.2
0.1
150.6
186.3

11 Related party transactions

During the year donations of £11,216 were received from trustees, of which £2,000 was restricted to additional Covid 19 costs.

12 Taxation

The charity is exempt from corporation tax as all its income is charitable and is applied for charitable purposes.

13 Tangible fixed assets

The group and the charity

The group and the charity
At the end of the year
Depreciation
At the end of the year
At the start of the year
At the start of the year
At the end of the year
At the start of the year
Charge for the year
Cost
Eliminated on disposal
Net book value
Additions in year
Disposals in year		 Freehold
land
£
182,049
-
-		 Freehold
buildings
£
2,992,786
-
(19,617)		 Fixtures,
fittings and
equipment
£
888,076
-
(189,146)		 Total
£
4,062,911
-
(208,763)
182,049 2,973,169 698,930 3,854,148
-
-
-		 2,261,931
75,544
(19,617)		 848,323
14,191
(189,146)		 3,110,254
89,735
(208,763)
- 2,317,858 673,368 2,991,226
182,049 655,311 25,562 862,922
182,049 730,855 39,753 952,657

The freehold land shown above at cost of £182,049 is not depreciated.

All of the group's assets shown above are used for charitable purposes.

39

St. Michael's Hospice (North Hampshire)

Notes to the financial statements

For the year ended 31 March 2021

14 Investments

Investments
Write off of investment in subsidiary
UK Common investment funds
Additions at cost
Fair value at the end of the year
Fair value at the start of the year
Historic cost at the end of the year
Disposal proceeds
Net (loss)/gain on change in fair value
Investments in subsidiaries
Investments comprise:		 2021
2020
£
£
2,617,059
3,115,516
300,000
-
-
(400,000)
-
-
542,049
(98,457)
3,459,108
2,617,059
2,074,930
1,774,930
2021
2020
£
£
3,459,108
2,617,059
-
-
3,459,108
2,617,059
The group
The group		 2021
2020
£
£
2,617,060
3,115,517
300,000
-
-
(400,000)
(1)
-
542,049
(98,457)
3,459,108
2,617,060
2,074,930
1,774,931
2021
2020
£
£
3,459,108
2,617,059
-
1
3,459,108
2,617,060
The charity
The charity
3,459,108 2,617,059

15 Subsidiary undertaking

The charitable company owned the whole of the issued ordinary share capital of St. Michael's Home Care Limited, a company registered in England (09218951). The subsidiary entered administration on 7 January 2021. All activities up to this date have been consolidated on a line by line basis in the statement of financial activities. A summary of the results of the subsidiary is shown below:

Interest receivable
Turnover
Cost of sales
Funds
St. Michael's Home Care Limited
Interest payable to parent charity
Management charges payable to parent charity
The aggregate of the assets, liabilities and funds was:
Administrative expenses
Assets
Liabilities
(Loss)/profit for the financial year
Gross profit
Operating (loss)/profit		 2021
£
419,929
(318,842)		 2020
£
741,227
(551,503)
101,087
(128,309)
-		 189,724
(214,462)
(35,746)
(27,222)
-
-		 (60,484)
8
-
(27,222) (60,476)
-
-		 112,570
(373,994)
- (261,424)

40

St. Michael's Hospice (North Hampshire)

Notes to the financial statements

For the year ended 31 March 2021

16 Parent charity

The parent charity's gross income and the results for the year are disclosed as follows:

Amounts due from group undertakings
Prepayments
Amounts due to group undertakings
Trade creditors
Taxation and social security
Deferred income (note 19)
Other debtors
Other taxation
Debtors
Accruals
Creditors: amounts falling due within one year
Trade debtors
Gross income
Result for the year		 2021
2020
£
£
25,987
171,956
-
-
45,550
128,464
523,567
45,850
132,526
99,405
727,630
445,675
2021
2020
£
£
91,265
100,983
-
-
-
8,795
298,889
338,114
132,645
127,800
522,799
575,692
The group
The group		 2021
2020
£
£
25,987
171,956
-
-
45,550
128,464
523,567
45,850
132,526
99,405
727,630
445,675
2021
2020
£
£
91,265
100,983
-
-
-
8,795
298,889
338,114
132,645
127,800
522,799
575,692
The group
The group		 2021
£
5,634,679
1,132,396		 2020
£
4,699,254
(930,115)
522,799 575,692

17 Debtors

18 Creditors: amounts falling due within one year

19 Deferred income

Deferred income comprises income received in respect of events being held after 31 March 2021 and lottery income received in advance of the draw.

received in advance of the draw.
Balance at the beginning of the year
Amount released to income in the year
Amount deferred in the year
Balance at the end of the year		 2021
2020
£
£
127,800
54,717
(32,150)
(54,717)
36,995
127,800
132,645
127,800
The group		 2021
2020
£
£
127,800
54,717
(32,150)
(54,717)
36,995
127,800
132,645
127,800
The charity
132,645 127,800

41

St. Michael's Hospice (North Hampshire)

Notes to the financial statements

For the year ended 31 March 2021

20 Pension schemes

The group operates a defined contribution pension scheme for certain qualifying employees and contributes up to 6% of basic salary matching employee contributions. The total pension contributions payable in the year were £172,442 (2020: £171,112). There were £13,648 outstanding contributions at the year end, (2020: £17,082).

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 (Government Financial Reporting Manual) 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 2020, is based on valuation data as 31 March 2019, updated to 31 March 2020 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.

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 £116,282 (2020: £106,857). There were no outstanding contributions at the year end or in 2020.

42

St. Michael's Hospice (North Hampshire)

Notes to the financial statements

For the year ended 31 March 2021

21a Analysis of group net assets between funds (current year)

Net current assets
Net assets at the end of the year
Tangible fixed assets
Investments		 General
unrestricted
£
261,756
2,074,931
944,914		 Fair value
reserve
£
-
1,384,177
-		 Restricted
funds
Total funds
£
£
601,166
862,922
-
3,459,108
6,789
951,703
607,955
5,273,733
3,281,601 1,384,177

21b Analysis of group net assets between funds (prior year)

Total restricted funds
Total designated funds
Fair value reserve
General funds
Unrestricted funds:
Calleva Foundation
Covid 19 related grant from NHSE
Movements in funds (current year)
Donations/Grants expended
Community Palliative Care
Insurance fund
Training fund
Net current assets
Restricted funds:
Friends of St Michael's Hospice Covid 19
Appeal
Total funds
Building projects
Tangible fixed assets
Property improvement fund
Total unrestricted funds
Designated funds:
Support Programmes
Equipment
Education
Net assets at the end of the year
Investments		 General
unrestricted
£
293,192
1,774,931
536,155		 Fair value
reserve
£
-
842,128
-		 Restricted
funds
£
659,465
-
35,466		 Total funds
£
952,657
2,617,059
571,621
2,604,278 842,128 694,931 4,141,337
At the start
of the year
£
659,465
26,302
8,203
961
-
-
-
-
-		 Income &
gains
£
-
7,226
-
-
25,000
51,401
975,685
185,963
20,000		 Expenditure &
losses
£
(58,298)
(27,466)
(8,203)
(371)
(25,000)
(51,265)
(975,685)
(185,963)
(20,000)		 At the end of
the year
£
601,167
6,062
-
590
-
136
-
-
-
694,931 1,265,275 (1,352,251) 607,955
-
-
-		 45,000
100,000
20,000		 -
-
-		 45,000
100,000
20,000
- 165,000 - 165,000
842,128
2,604,278		 542,049
4,624,331		 -
(4,112,008)		 1,384,177
3,116,601
3,446,406 5,166,380 (4,112,008) 4,500,778
4,141,337 6,596,655 (5,464,259) 5,273,733

22a Movements in funds (current year)

43

St. Michael's Hospice (North Hampshire)

Notes to the financial statements

For the year ended 31 March 2021

22b Movements in funds (prior year)

Total restricted funds
Fair value reserve
General funds
Donations/Grants expended
Support Programmes
Community Palliative Care
Building projects
Restricted funds:
Equipment
Calleva Foundation
Unrestricted funds:
Total funds
Total unrestricted funds
Education		 At the start
of the year
£
873,197
6,062
8,203
2,913
-
-
150,000		 Income &
gains
£
-
20,240
-
-
25,000
16,636
-		 Expenditure &
losses
At the end of
the year
£
£
(213,732)
659,465
-
26,302
-
8,203
(1,952)
961
(25,000)
-
(16,636)
-
(150,000)
-
(407,320)
694,931
(247,030)
842,128
(5,503,509)
2,604,278
(5,750,539)
3,446,406
(6,157,859)
4,141,337
1,040,375 61,876
1,089,158
2,740,971		 -
5,366,816
3,830,129 5,366,816
4,870,504 5,428,692

Funds - current and prior years

Building projects: Donations were received for building projects to provide for the expansion and refurbishment of the Hospice buildings. As the final project was completed in April 2014, all of the outgoings relate to depreciation.

Equipment: The equipment fund provides for the purchase of various types of equipment for which specific funding has been raised.

Education: The education funds provide for the support of course fees for nurses, together with delivering specific training to relevant bodies in the community.

Support programmes: The funding provides for supporting specified groups of patients and their families.

Community Palliative Care: This is funding for the continuation of the community palliative care programme.

Donations/Grants expended: The income is for a medical salaries grant and for various PPE supplies.

Calleva Foundation: The Calleva Foundation made a donation in April 2020 to provide funds to support St. Michael's Home Care Limited.

Covid 19 related grant from NHSE : The NHSE (NHS England) awarded funding to allow the hospice to make available bed capacity and community support from April 2020 to July 2020 and from November 2020 to March 2021. This funding was to provide support to people with complex needs in the context of the COVID-19 situation and to provide bed capacity and community support for the same purpose.

Friends of St Michael's Hospice Covid 19 Appeal: appeal run to mitigate loss of income from events and to further support the Hospice.

44

St. Michael's Hospice (North Hampshire)

Notes to the financial statements

For the year ended 31 March 2021

Funds - current and prior years (continued)

Purposes of designated funds

Property improvement fund: Reserves have been designated to complete the refurbishment programme in the In Patient Unit in 2021-22.

Insurance fund : during the year a successful claim for business interruption was made. However, this resulted in a significant increase in insurance premium. This fund is to cover the additional cost of insurance for a five year period.

Training fund : The Hospice has begun an extensive management development programme and this fund is set up to cover the high up front costs of developing the programme.

Fair value reserve: This fund represents the excess of fair value over the historic cost of the investments.

23 Reconciliation of net income / (expenditure) to net cash flow from operating activities

Net (expenditure)/income for the reporting period
(as per the statement of financial activities)
Depreciation charges
Losses/(Gains) on investments
Dividends and interest from investments
Decrease/(Increase) in debtors
Increase/(Decrease) in creditors
Net cash (used in) operating activities		 2021
2020
£
£
1,132,396
(729,167)
89,735
255,715
(542,049)
98,457
(94,093)
(105,627)
(281,955)
153,058
(52,893)
118,243
251,141
(209,321)

24 Operating lease commitments

The charity and group's total future minimum lease payments under non-cancellable operating leases is as follows for each of the following periods:

each of the following periods:
Less than one year
One to five years
Over five years		 2021
2020
£
£
211,700
279,355
721,350
779,850
312,100
465,300
1,245,150
1,524,505
Property		 2021
2020
£
£
10,491
10,600
10,071
2,860
-
-
20,562
13,460
Equipment
1,245,150 1,524,505

25 Legal status of the charity

The charity is a company limited by guarantee and has no share capital. The liability of each member in the event of winding up is limited to £10.

45