Peace Hospice Care PEACE HOSPIC£ CARE {A Charitable Company limitèd by guarantee) TRUSTEES ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 Cornpany No: 2604892 Charity No: 1002878 *ABEHVYCJ" 12110r2022 COMPANIES HOUSE PEACE HOSPICE CARE TRUSTEES REPORT FOR THE YEAR ENDED 31 MARCH 2022 CONTENTS Refèrence and administrative detsils Trustees. Report Independent auditors report 15 Consolidated Statement of Financial Activities 18 Consolidated and Charity balance 5heels 19 Consolidated Cashflow Statemeni . 21 Notes to the fLnancial statements 22 .PEACE HOSPICE CARE TRUSTEES REPORT FOR THE YEAR ENDED 31 MARCH 2022 Charlty Name Peace Hospice Care Charity Number 1002878 Company Number Registered OWtte 2604892 Peace Oti¥e Watford Herts WD17.3PH Trustee5 Dr Jeremy ShÉndler (Chairl Mr Jormo Kesan¢O (Wice-chairl Mr Richard Ru5sell-Hogg (Treasurer) Dr Brihad Abhyankar Mr David Cunnington Mr Garry Davis Mr Alan Graham MBE Mrs Seema Hill Mrs Erika Morale2-Perez Mr Geoff Cortè Iresigned 24 May 2022) Ms Annesha Archyangelio (resigned 24 May 20221 Chief Executiv* Execulive Manag¢mènt Team Mrs J Tritton Ms C Allen Mf A Forth Dr"S Klinger Mr N Harman Auditors Haysmacintyre LLP 10 Queen Stieet Place London EC4R IAG Bankers Nat West Bank PIC 72-74 High Street Watford Hèrts WD17 2GZ PEACE HOSPICE CARE TRUSTEES REPORT FOR THE YEAR ENDED 31 MARCH 2022 TRUSTEES ANNUAL REPORT The Annual Report is to ensure that Peace Hospice Carè IPHCI is pubLicly accountable to its stakeholders lor the stewardship and management of the funds it holds on trust This report meets the requirernents of law and ieguiation. It provides a fair, bal3nced and understandable review ol the Charit￿S structure, legal purpose, objectives, activities, fi.nancial performance and flnancial positLOn. REVIEWOF THE YEAR It has been another successful year in 2021-2022 for us despite the difhcult circumstances emerging from the COVID-19 pandemic restrictions. During ihis year our team has worked in collaboration with the Herts and West Essex local Integrated Care System in improving Palliative And End of Life Care services across West Herts. This has included working in partnership with other Hospices in provision of our Improving Access to Psychological Therapies IIAPTI contrac( which has increased our Berehvement and Covn5elling contacts. We continue to work with the two West Herts hospicès and Central London Community Health ICLCHI NHS trust in increasing our reach and coverage io people in their own homes/care homes. We have done this through the introductton ol the joint NHS ar￿ Peace Hospice Care community virtual ward model, which includes irnproved communication and coordination of care and extension of our Palliative Response teams service hours. as well as continually increasing referrats to our Rapid Personalised Careiseryice. This increase in actjvity is recognised with an increase in direct funding from the NHS, which ir¢ turn allows Lts to invest more of our donated resources across all our setvice5. A key marker of the impact of Palliative and end of-life care services s the number of people who achieve their preferred place of care and death. Our community services have achieved tn excess of 8 out of 10 of our patients dying in their preferred place of cafe and death. Our community services team are able to demonstrate an increase in patient prèference5 and wishes to die at home, which we are enabling them to achieve. Our Ch(el Executive OffLcer and Executive Managemènt team substantially Succeeded with 90% of their strategic objectives during the year and on behalf of the Boaid of Tru51ees. I thank them for their hard worl diligence and dedication to our service. l also wholeheartedly thank all of our volunteers. donors, corFK)rate Sponsors and supporters for all your contributtons to Peace Hospice Care during the last year. Without your" dedicated support we could not have ach4eved this enhanced level of service provision for all our clients. Jerèmy Shindler Chair OBJECTIVES AND ACTIVITIES Charltable Objects and Purpose Peace Hospice Care is a company limited by guaranlee and is a registered chaiity. The Chaiity purpose is set out in its Articles ol Association io promote=_ . the relief of sickness or suffering lor those sufferin9 from any Life-limiiing illness primarily btjt not exclu5tvely within the area of South West Hertfordshire support and care for their farniLies, friend5 and carers other objects of social welfare which may now or hereafter be deemed by law to be charitable, in such ways as the Trustees shall from time to time think fit through the provision of heolth and social care setvices of all types. including Iwithoui limitation) accommodation and day care servtces through establishing and maintaining a Hospice,. palliative care services,. Counselling, bereavement other 5ervice5 to help relieve emotionaL mental or Spiritual distress, and to promote education about, and research into the development Governance. PEACE HOSPICE CARE TRUSTEES REPORT FOR THE YEAR ENDED 31 MARCH 2022 . Public Benefit PHC is a PLJblic Benefit Entily. The Trustees confirm that they have complied with iheir duty under section 17 of the Charities Act 2011. They have considèred the public benefit guidance pUb[￿hed by the Charity Cornm￿510n and believe that they havÉ* followed it. Thts report provtde5 csetails of the aieas of charitable activity Lsndertaken by PHC. Pèace Hospice Care pn)vides the fotiowillg seNice5: Peacè Inpatient SÈrvi¢es'. Our Inpaiient Unit IIPUI is a 12-bedded. short stay unit providing high quality. 5pecialisl palli)tive care which includes symptom control rehabilitalion and end of life care for individuals whose symptoms cannot be controlled at home. The team deliver holistic carè for patients and their families including physical, emotionaL spiritual and practical 5UPPOrt lor those living with a lile-iimiting illness. The Unit supports the values of PHC in lis caring and relaxed environfflent. treating all patients and their loved ones with respect and dignity. The IPU has a highly effettive. multL-disciplinary team ensurkng all aspects of each patient's condition are addressed in a sensitive manner. Peace Outpatient Sèrvices: Pèace Outpatient SeNices provide holistic assessment care and Support for people living with life- limiting illnesses in South West Hertfordshire. The team tatlor services to meet the frequently changing needs of our individual patients at different points in time. ensuring that the patient and. their family i5 at the heart of all decision making. This includes providing detailed holistic assessments and. ieviews via a nurse-led clinio multidisciplinary teams and consensu5 decision making which underpin our patient-centfed approach. To achieve our aims,. we offer three tiers of wellbeing and rehabilitation support {univeisaL targeted and specialisedl. which may change overtime to meet the specific needs of each patient. The servtce includes a very wide range of rehabilitation interventions and support. wellbeing and creative arts a flourish¢ng and growing Compassionate Neighbours service and a grow(ng counsett(ng and bereavement service. We are keen to enhance the acces5 to these services for. those patients in seldom-heard communities who have not until r￿￿. regularly accessed our services. Pèace Communlty SÈtvtcÈs: Our Rapid Per5onèlised Cère Service prpvides personal care for up to 12 weeks to patients at home receiving end of lile care whilst our Palliative Response Team s a skilled nurse and medical team supportin9 Patients. their families and carers at home in line with their wishes to receive and remain at home for their care. Peace Education Services: As well as providing internal tiair)ing to Staff and volunteers, we work exlernally with care.home staff to raise awareness of the needs of patients with palliative care needs. STRATEGY 2020 - 2025 Oui Purpose Making J difference to those in our community who need us because, we believe. every person matters. every day counts. Our Wision Until the day that all paLL¢ative care needs in our community are mel we will stnve to extend our reach to support more people. whenever and wherever they need us. Our Value5 Which underpin everything we do: Page5. PEACE HOSPICE CARE TRUSTEES REPORT FOR THE YEAR ENDED 31 MARCH 2022 IntegTity- we are opery honest and forthri9ht. Qvality - we aTe committed to achieving the highest possible standards across our organisat(on to benefit patients, families, carer5. voILinteers. staff and the wider commLinity. Collaboration krK)w that working together makes u5 stronger and we seek to work in partnership to maximise resouices. skills, expertise and knowledge. as well as efftciencies. Compassion - the physicaL psychological and emotional weilbeiThJ of otheis ¢s at ihe heart of what we do. Key Stratègtc Alms This organisational wide work plan supports the agreed 5-year PHC strategic ambitions and clinical strategy goèls and planned prioiities 202212023. Progress against the plan will be monitored through Executive Board feain meelings. The plan will be reported by exception to the Board and ils sub committees on a quarterly basis. Peace H¢5pice Care Strategic Ambitions l. We will reach more people and their families ln our community living With a life-limitin9 Lllnèss. We w(11 continue to have exceptional care at the heart of whal we do. We will offer care and support to ouf community. regardless of their diagnosi* and as soon after ih¢s phase of illness is identified. 2. We will recognise. enga9e aNI actively respond to opportunities for working sharing and leaming from each other..As experts in delivering palilative care, we will work with other providers to improve care anij support and educate others about the value add impact of our work 3. We will manage our Charity eflicientty and effectively. To deliver our strategic pian. we will invest in our people, our income generatiorn oui brand and our cornrnunications. STRUCTURE. GOVERNANCE AND MANAGEMENT Legal Structure and Purposè Peace Hospice Care is a company limited by guarantee under the Companiès Act 2006. number 2604892. The charitable company ts governed by its Memorandum and Articles of Association and És registered with the Care Quality Commission whith monitors and inspects the Charity as an independent health care provider. Thè registered manager is Mrs Jackie Tritton, Chief Executive Officer. The Hospice provides care and support for adults and farnilies affected by cancer and otheT life- limiting illnesse5 from diagnosis, whether on a known curative pathway or not. Our offer 4$ focused on intervention5 of care from self-management through to specialisi palliative and end of life ca￿. This can be accessed through the IPU. day seThices and the Hospice at Home Service. In line with the UK'S independeni hospice movement, PHC'S services ère provided at ro c05t to patients or iheir famtiies. Nurses and rlinicians provide special￿t care as.well as practical hands-on nur5in9 carè for patienis with a range of terrninal and iile-threatening i(Inesses. PHC'S charitable purposes are set out rn the objects contained in the companys Memorandum of Association. In Section 4, the objects are defLned as'the relief of sickness. and this is further defined in relation to the charitable purposes through a series of more detailèd objects. The objècts all support the Charity's purpose which is the provision of a specialist palliative nursing ore seivice to patients with life-lirniting illness. Page 6 PEACE HOSPICE CARE TRUSTEES REPORT FOR THE YEAR ENDED 31 MARCH 2022 Corporate GovÈrnance 8oard of Trustees The Board of Trustees as Directors ol the Company are legally responsible for directtng the affairs of the Charity. They serve for a renewable term of three years and maxtmum ol nine years and have widè range of skills and experience (nclud(ng citnical and professional expertise. The Board meets at least flve times each year to review and direct Peèce Hospice Care strategy, budget and peTformance. Day-to-day management of the Charity is delegated to the Chief Executive, the Executive Board and the Sentor Management Team. Specific responsibilities are also delegated to a number of committees. Certain matters are reserved for 8oard approvaL incLuding change5 to strategy. budget and delegated authorities. Appointmènts. Trairilng and Évaluation of Board The Board of Trustees appoints all nevi Trustees and Commitiee members. Trustees are recruited through a process ol advertisemenL application and interviews based on clear selection criteria, which ensures a broad range of relevant skills and experience. Ar7 induction prograffjme is provided to all new Trustees with further updates and training as required. This includes meetings with the Chiel Executive. Executive Board and other membefs of the Senior Management Team as appropriate. The Board has a process where it reviews its performance annually and initiates periodic reviews. The Chair conducted Board Appraisals throughout the year in line with the Board Apprai￿[ Policy. In addition, the Board also reviewed its own performance and that of the Committees. OveralL the TrLtstees believe the Board and the Committees are performing welL although Tecognising Ihe need for continuous improvement. Remuneration The talented stèff we employ. alongside our skilled and cornmttted volunteers. are vit•l in providing the high-quality care we offer to people living with any life-limiting illnesses. and also their families. Peace Hospice Care is a large and complex organisation with more than 115 slalf and 450 voluntèers helping to provide this care and support. Peace Hospice Care use5 a fair and transparent process in determining all job performance levpls. These are then benchmarked against similar jobs in other tharities and relevant organisations to ensure we adopt and apply fair and consistent pay and benefits for staff. We curientiy operate The Peace Way pay Structure which e￿leavOurS to match NHS rates for our clinical services to attrart and retain people with the right skills. taLents and instght. and ensure we are as efficient and eflective as possible. No individual perf0rrnan￿ bonvses are paid. Publi¢ Benefit The Trustees have taken account of the Charity Commission's general guidance on public benefit when reviewing the Charit￿S aims. objectives and p&nning. Commlttees A new commiltee structure was agreod by the Boafd in February 2021 and commenced oft 111 April 2021 following the introduction ol a new integrated governance framework which brings together all the LegaL Clinical and Corporate Governance Structu￿5. process and documents. To support the Board fulfilling ils objectives to deliver the PuTpose and W￿lon of Peace Hospice care. the Board ol trustees has established three committees each responsible to the Board. Risk Audtt and Qualily Assurance Committee (RAQA).. The purpose of the RAQA Committee is to provide assurance to the Board ensLtring thal effective control systems are established and maintained across the oiganisation. while remaining compliant Wlth all legislative and Teguiatory requirements. To achieve th4S the Commitree considers and exatates to the board any strategic PEACE HOSPICE CARE TRUSTEES REPORT FOR THE YEAR ENDED 31 MARCH 2022 risks that could impact PHC'S ability to achieve its ambitions. It also provides board level assurance on all aspects of quality governance including audit. clinical effectiveness, customer. patient staff and voluntew expeTience and quality standards and best practice. Buslness Strategy and Performance Commlttee (BS&P): The Purpose of the BS&P Committee is to PTovide assurance io the Board on the development and dèlivery of the charit￿S strategic ambitions and annual operational plan. It identilies r*ew risks which may arise out of the development of the plan. It also identifie5 opportunities to maximtse business growth and service dèvelopments which are resPOn5ive to our local needs as well as ensLJring we have a fit and proper workforcè that Can fiexibly deliver the strategic pian. To achteve this. the Committee also provides board level assurancè on all 35peFts of performance induding financial accounts stewardship, Income Generation profitability and Patient Seryice5 capacity and activity- Remunerat40n and Nomlnation Committee (R&N):' this committee generally meets twice a year. The R&N Committee funaions primarily as an assurance tommittee, a55iSting the Board in its duty to ensure appropriate Fit and Propel governarbce arrangements are in pkce. It also supports recommendations feiating tr) remuneration terms and ¢ondiiitins of service for Board and the Executive Director roles. Charlty Governan¢e C(￿￿ The Charity Governance Code (the" Code} is a Set of principles and f￿0mmended good practice against which Charities may compare thtrmselves and identify area5 of Strength and foi potential improvement. The Code includes seven principles which the Board of Trustees ha5 considered in its aim to ensure ontinued strong governance at Peace H05pice Care. Integrlty The culture of the Board supports independent and challenging thought accompanied by a supportive ethos. Procedures are in place to prevent conliicts of interest and to en5vre the Board is independent in it5 decision making. Decision Making. Risk and Control The Board'has developed an effective structuie of board commiltee5 and working 9roups. This enables management to effectively implement the strategic priorities of Peace Hospice Care whitst allowing the Board time to focus on stiategy. Operational matters are delegated to the Executive management team who report on key strategic developments to the Board. Importance is placed on effective risk management. Durir¥J the period of this repor( the risk management proce5S Was reviewed and refined. Board Effectivene5S The Chair has initiated governance reviews during the year to ensure the process for the recruitment. appointment &nd Ketirement of ￿ Board members is effective. Equality. D¢versity 8r Inclusion The Board recogni5e5 that a variety of perspective5. backgrounds and skills is essential for good governance. These matter5 are considered as part of the Pro￿5$ for nominating new trustees. Openne55 and Arcountsbiiity The Board p￿teS great importance in ensuring that Peace Hospice Caie's services. activities and impact ale reported to all stakeholders in a transparent way. Key information is made available to staff and volunteers by the Chair and Chief Executive. In additiorn we aetiveiy seek feedback from our staff. voluntee¥5 and patients. PEACE HOSPICE CARE TRUSTEES REPORT FOR THE YEAR ENDED 31 MARCH 2022 Reiatconships with ￿￿er Interests and Related Parties Peace Hospice Care is a member of HO$￿Ce UK. the National Association foi Hospice at Home and Together lor Short Lives. Individual membeis of the Executive Management Team and other members of Staff afe membeis of various professional representative bodies. Management The board delegates operational responsibility to the Chief Executive and through them to the Executive management team. The Chief Executive has line managernent responsibility for the Executive team comprising the Dir￿tOrS ol Patient Services. Income Generation. People and Resources. Engagement and the Medical Director. Members of the Executive management team represent the oiganisation on significant locaL regional and national organisations, committees and bodies. The Board of Trustees agrees the strategy for the Chtyrity aThJ the Executive Management Team are accountable lor detiveiing this. Fundra¢sing Regulator Peace Hospice Care is registered with the Fundraising Regulator and is committed to the Fundraising Promise and adherence to the Code of Fundraising Practice. Donors can be assured thai we comply Wlth these regulatory.standards. Auditors In accoidance with section 489 of the Companies Act 2(K)6, a decision on the appointment of Auditors put to the Annual General Meeting IAGMI. Hay5macintyre were Te-appointed as auditors at the AGM in September 2022. PEACE HOSPICE CARE TRUSTEES REPORT FOR THE YEAR ENDEO 31 MARCH 2022 FINANCIAL REVIEW This financial year Peace Hospice Care IPHC) received a totsl of £7,118,621 of income {2021= .£6,221,602) ' including £2,576.904 from donations and legacies 12021- £3,189.002), Clinical Commi55koning Group funding of £1.368.965 12021.. £1.302.751) and £3.172,752 from other trading activities and investment irKome12021= £1.729N91. The main decrease in this year compared to 2021 is due to Fundraising income down due to the pandemic and disappointing low levels of legacies. These were partly offset fcom Government Funding including NHSE. Job Retention Scheme and Business Support Grants. The Fundraising income excluding legacie5 equated to £1,187,182 12021: £2.607,785) and when measured against the core fundraising costs (excluding SUPFK)rt cost5) of £413.363 12021-. £384,035) it resulted in a retur.n of £2.'87 £1 {2021= £6.79.. £11. A numbei of income streams did not perform as well as expected but this was mainly oftset by careful control of costs. Restricteil fvndraising income included grants totalling £223.926 {2021-. £1.346,0101 for various ro ects but matnl from NHSE for makin available bed capaoty and community support. Re¥lewd1￿•ffle20I0.I1 Re4lewoflKome2021.2Z The income streams for Fundraising and Retail were disappointing in 2021122 mainly due to the par￿emiC. These are being addressed for 2022123 to achieve the budget targets. RevlewofEyndiur*202ty21 Reviewol ExpendiurelOII.2Z Expenditure wa5 below budget (lue to good financial management during the pandemic which has partly offset some of the income shortfalls. The NHSE awardèd funding to allow the hospice to make available bed capacity and community support f¥om November 2021 to March 2022 to provide support to people with complex needs in the context of the COVID-19 situatton and to provide bed Capacity and Communty support Page 10 PEACE HOSPICE CARE TRUSTEES REPORT FOR THE YEAR ENDED 31 MARCH 2022 Plans for Coming Year In 2018/19 the Medium-Term Financial Sttategy IMTFS) was introduced which provides financial planning over 5 years. Th￿ strategy has been further developed and in 2021122 took account of the impact of the pandemic and strategies going forward to ensure financial sustainability. Thts is jointly owned by business management and finance. It also informed the other strategie5 that have been implemented, namely the f ive-year Strategic Plan 2020 to 2025 which detaÈls the strategic aims and ambitions of Peace Hospice Care. This is based on the plans that have been developed.. the Income Generation Strategy. the People Strote9y and Volunteerg Strategy. The Clinical Strategy was Launched during 2018119. Prop05ed Mer9Èr with Rennie GTove Hospice On 22 June 2022. PHC announced its inter*tion. subject to agreement of the Charity Commission. to merge with Klennie Grove Hospice la charity based in Hertlord5hire and Buckingham5hirel. The mèrger would be affected by a new charity. Rennie Grove Peace Hospice Care, assuming full ownership ol Peace Hospice Care and Rennie Grove Hospice. The target date for the merger is I October 2022. Collabo¢ative working with Rennte Grove Hospice in rècent ￿ar$ has been strong and the background to the proposed merger is our strong inilial projects involving lèarning & development outpatient services and medical supporL put in place duriryJ 2030 arKI 2021. The proposed merger will enable the new organ￿tIOn to.. Serve - provide a wider range of services to suppoit people in West Herts and Buck5 to ILve as well as possible w￿n diagnosed with a lile-limiting illness Reach - develop new aThJ enhanced seNices to reach ali sections of the local community and meet their changing needs Strengthen - use the strengthened combined voice to secure the resources needed to ensure every local person receives the ¢are they need. when they need li The proposal to merge supports the national drive for healthcare providers in all sectOf5 to combine resources and work together to provide the best possible care for people in the local communities, as weil as the passion shared by both charities to deliver the highest qualiiy care. PHC are reviewing the Patient Response service in our community and i5 developing a model to provide this 24 hours. 7 days a week. This will be part fvnd￿ from use of reserves and the CCG are being approached for match funding. The implications of COVID 19 reLiied control mèasures In March 2020, the country went into lockdown due to the coronavirus pandemic and across the UK the effects of the attempt to control the spread of the coronavirus has been felt and seen. Charities are seeing an impact to their finances as a result ol the cris(s. As the pandemic has continued but lockdown mèasures eased during this period. Income Generat(on income has started to. recover and the MTFS has taken this into account Wlth fuithe¥ growth from 2023n4 onwards. The Board approved a deficit budget for 2022123 but with projected growth in Income Generation income the MTFS goes back in to 5uiplus from 2024125 onwacds. The Revised Budget foi 2022123 showed a shortfall of £488k against the approved budget and took account of the risks of not achieving the income generation targets. The Hospice has an Operational ReseNe ot £1.38rn for this kind of 5Ltuation but due to go¢)d finar)cial management. and additional funding from the Government the year end position ended with a surplus. Page 11 PEACE HOSPICE CARE TRUSTEES REPORT FOR THE YEAR ENDED 31 MARCH 2022 The Hospice operational activities have not been impacted much due to the Covid-19. The Inpatient unit IIPUI has been operating throughout th￿ apart from a closure at the end of February until the end of June due to staff vacanc(es. CDmmunity SeNices has continued and the PutpatiÈnt Ser¥ice5 has been operating throughout 2021122. The Executive Team reviewed the new Strategic Pian 2020 - 2025 for any impact of Covid-19 and there were no major changes. In addition to the challenges of Covid-19. the cost of living cri5iS 1$ starting to have an impact on the Charity, mainly with the energy costs. There have been substantial increases in the contrac15 which are currently being evaluated. However. the Government's announcement will mitigate some of ihese large increases in the short term and are waiting for further details fiom the Government. The impact of the cost ol liv(ng on our fundraising activit￿5 and donors and is being monitowed but cuirently there has been no adverse impact. RESERVES All charities are required to consider how much they need to hold in ieserves. The extenl varies depending on the scale and nature of the Charity's attivity. Peace Hospice Care is dependent on several liuctuating income streams. particularly furKlraising. shop proflts. Legacy, trust and corporate donalions. To enable the Chartty to make commitments to the commijnity PHC works with. it needs to maintain Level of reserves so that it can contin45e its operation in the event that an. unforeseen shortfall in voluntary ineome, or increase in costs. creates an imbalance of funding. The Trustees calculate the amount that L5 requiTÈd to be held based on the assessment of risks affecting the tncome and expenditure of the Charity. In assessing the amount of rese￿e5 required to be held, the risk of a shortfall in income or an increase in costs is esiimatèd and a sum held to cover the 5hortlall for each element. The reseNes held by Peace Hospice Care would allow it to continue operat¢ons even when thwe is an unforeseen downtum in any of these source5 01 income. or an unforeseen increase in costs. In April 2021. the Board reviewed the new Reserves and Investment Policies that included.. An Operating Reserve.. An amount estinuted at between £1.3m and £1.4m {£1.38m at 31 March 20221 to cover the loss of Clinical Commissioning Groups {CCG) funding and/or a catastrophic 105s of reputation. This rationale will allow the Charity to meet its liabilities in the short term. under a variety. of scenarios, whilst making alternative plans, for rneeting ovr longer-term obltgations and ensuring the needs of our benefictarles are met The Legacy Investment Fund-. established from surplus funds over and above the budgeied income from legacies. fhis will be used os requtred to top up the legacy ￿ne in the budget in lean ye3rs and mitigate against fluctuaiing legary income. For 202V22 the fvnd stands at £3,772,257. It is also used to fund planned capital and one-off investmenis At the balance shpet date, the Charity holds both. restiicted ltsnds (which can only be applied for specific purposès) of £853.125 12021-. £812,416) and . unrestricted funds of £1,507,308 12021.. £1,260,737 (which can be expended at the discretion of the Twstees in furtherance of the CharIt￿S objects}. The unrestricted Funds are the General Fund for day to day operations of the Hospice, £1,508.308 12021.. £1.259.7471, the Revaluation Reserve for land and buildings £5.9)5 12021.. £5,905) and the Legacy Investment Fund £3.n2.25712021.- £3.539.711). Page 12 PEACE HOSPICE CARE TRUSTEES REPORT FOR THE YEAR ENDED 31 MARCH 2022 The Trustees have deslgnated £2.443.505 to a Property Éund {2021= £2.443.5051 to reflect the replacement cost of the assets held as land and buildings at 31 March 2022 excluding amounis i included in restrtrted funds.. £135.374 to the Capital PTogiamme Fund 12021.. £135.374) which will finance the Capital Programme and Strategic Bus¢ness Developmenls. The Revaluation Reserve has £S.90512021'. £5,905) allocated to ceflect the unrealised gains on the increase in the mafket value of the Listed investments. The ReseNes"policy is reviewed annually by the Investment Working Group and approved by the Board. Another review will be carried out in 2021r22 in Line with ihe other strategtes including the ' Medium-Term Financial Strategy and we WLU be feviewing the Reserves and Investment Policy. The designated reserves cover over 12 months of operating expenditure. Investments With the exceplion of two small IKAdin9s in equities. the Trustees have agreed to invest some surplus funds in Managed Funds with the balance held in cash for day to day expenditure. Funds held by external fund managers are held in line with an investment policy and strategy defined by the by the Board ol Trustees and advised by Epoch Consulting. Page13. PEACE HOSPICE CARE TRUSTEES REPORT FOR THE YEAR ENDED 31 MARCH 2022 STATEMENT OF TRUSTEES. RESPONSIBILITIES IN RESPECT OF THE TRUSTEES. ANNVAL REPORT AND FINANCIAL STATEMENTS The Trustees {who are also directors of Peace Hospice Care for the purposes of company lawl are responsible for preparing the Trustees. Annual Report and the financial siatements in accordance wlth applicable Law and Un£ted Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Company law requires the Trusiees. to prepare fmancial statements for each ftnarKial year. Under company law the Trustee5 must not appiove the finarKial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of iesourtes, including the income and expenditure. of the char(table company for that period. In preparing these financial 5tatementy the Trustee5 are required to.. selecr suitable actounting wlicies and then apply them consistently. observe the methods and piinciples in the Charities SORP,. make judgments and accounting estimates that ale reasonable and prudent,. state whether applicable UK Accounting Standards have beÉn.foEiowed, subject to any material departures disc105ed and explained in the financial statements.. prepare the financial statements on the going concern basis unless it is inappropriare to presume that the charitable company will continue in operation. The Trustees are responsible for keeping adequate accounting records that are sufficient to $￿W and explain the charitable company's transartions and disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the f￿￿ncial statement5 comply with the Companies Act 2(KJ6. They are a150 responsible for.s3feguarding the assets of the charitable company and hence for tsking reasonabte steps fo'r the pfevention and detection of fraud and other irregularities. The Trustees are responsible lor the maintenance and integrity ol the corporate and financial infoimation included on the charitable company5 website_ Legislation in Ihe United Kingdom governing the preparation and dissemination of knancial statements may differ from legislation in other jurisdictions. In approving this Trustees, ReFY)rL the Trustees are also approving the Strategic Report inctuded here in their capacity as Company Directors. This repott of the Board of TTUStees is approved on behalf of the Board of TTUStees. Dr Jeremy Shcndier Chalr 20 September 2022 Page14 PEACE HOSPICE CARE FINANCIAL REVIEW FOR THE YEAR ENDED 31 MARCH 2022 Independent auditor's report to the members of Peace H05pice Care Opinion We have audited the financial statements of Peace Hospice Care for the year ended 31 March 2022 wh¢ch comprise thè Consolidatèd Statement of Financial Activities, the Consolidated Balance Sheet, the Charity Balance Sheel. the Consolidated Statement of Cash flows and notes to the financial starements. including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, includ(n9 Financial Reporting Standard 102 T1￿ F(nèncial Reporting Standard applicable in the UKandRepubl¢c of Ireland{Un¢ted Kingdom Generally Accepted Accounting Piacticel. In our opinioTh the linanc¢al 5tatements= give a true and fair view of the state of the group's and of the parent charitable companls affairs as at 31 March 2022 and of the group's Jnd parent charitable company's net movemeni in funds, including the income and expenditure, for the year then ended,. have been properly prepared in accordance with.United Kingdom Generally Accepted Accounting Practice,. and have been prepared (n accoidance wilh the requirements of the Companies Act 2006. Basts for opinion We conducted our audit in accordance with Intemational Standards on Auditing (UK) (ISAS IUK)) and applicable law. Our responsibilities under those standards ale further described in the Auditor's responsibilities for the audit ol the financial statements section of our reporL We are independent of the group 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 fulliiled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appiopriaie to provide a basis for our opinion. Coniiusions reiaiing to golng concèrn 'In auditing the financial statement5, we have concluded that the trustees, of the going concern basis of accounting in the preparation of the financial statements 15 appropA•te. Based on the work we have performed. we have not identified any material uncertainties relating to events 01 condition5 that individLbally or collectively. may cast signilicant doubt on the group's ability to continue as a going concern for a period of at least ￿e1ve months from when the financial Statements arè author￿d tor issue. Ovr responsibilities and the responsibtlities of the trustees with respert to going concem are described in the relevant seclions of Ihis Kèpoit. Other informatlon The trustees are responsible for the other information. The other informaiion comprises the information included in the frustees. Report and the Financial Review. Our opinion on ihe financial statements does not cover the other informatton and. except to the extent otheryvise expliciily 5taied in our report, we do not expiess any form of assurance conclusion thereon. In connection with our èudit of the financial statements our responsibility is to read the other information and, in doing so. conslder whether the other information is matefiaiiy inconsistent wilh the linancial statemenis 01 our knowledge obtained in the audtt or otherwise appears to be materially misstated. If we identify such material Énconsistencies or apparent material misstatements. we are required to determine whether there is a material misststement in ihe financial statements or a material misstatement of the other information. If, based on the y￿rk 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. Page 15 PEACE HOSPICE CARE TRUSTEES REPORT FOR THE YEAR ENDED 31 MARCH 2022 Opinions on other matte¥s prescribèd by the Companies Act 2006 In our opinion, based on the work undertaken in Ihe course of the audit.. the infoTmation given in the Trustees. Report (which includes the strategic report and the directors. report prepared for the purposes of company lawl for the fLnancial year for which th'e fLnancial statefflents are prepared is con5islent with the financial statements,. and the strategic report and ihe directors, report induded within the Trustees. Report have been prepared in accordance w(th appllcable legal fequirements. Matters on which we are required to report by exception In the light of the knowledge and understandin9 of the group and the parent charitable company and its environment obtained in the iour5e ol the audiL we have not identified material M￿statementS tn the Trustees. Annual (which incoiporates the strategic report and the directors, repoit). We have nothing to report in respect of the following matters in reiat(on to which ihe Companie5 Act 2006 requires us to report to you if. in our opinion-. adequate acc(iunting iecords have not been kept by the parent charitable company." or the parent charitable company financial ststements are noi in agreement with the accounting records and returns,. or certain disclosures of tru￿ee5, remuneration specified by law ale not made,. or we have not received all the information and explanations we require for our audit Responsibilltits of trnstees for the financial ststements As explained more fully in the trusiees, responsibi(ities statement Iset out on page 141. the trustees (who are also the directors of the charitable company for the purposes of company lawl are responsible for the preparation of the financial statements and for being 50tlsfted that they give a true and fair view, and for such internal control as the trustees delermine is necessary to enable the preparation ol financial statements that are free from mater(al mi55tatemenL whether due to fraud or error. In preparing the financial staternents the trusiees a￿ responsible for assessin9 the group's and the parent charitable companys ability to continue as a going concern. disclosing. as applicable. matters related to going concern and using the going concern basis of accovnting unless ihe trustees either intend to liquidate the group or thp parent charitable company or to cease operations, or have no realistic alternative trt&t to do so. Auditor's responsibililies for the audit of the financial statements Our objectives are lo obtain reasonable assurance about whether the finarKÉal Statements a5 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. bui is not a gtjarantee that an audit conducted in accordance with ISAS IUKI wiii.always detect a material misstatement when it exists. Misstatements can arise from fraud or eiror arKI are considered material if, individually or in the èggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of th'ese financial statements. Irregularities, including fraud. ale instance5 of non-compliance with laws and regulations. We design procedures in line with our responsibilitles. .outtined above, to detert matèrial mi55tatèments in respect of irregular¢ties ¢ncluding fraud. The extent to which oui procedures are capable of detecting irregularities including fraud is detailed below-. Based on our understanding of the group and the environment in which it operates, we identified that the principal risks of non-corripliance wtth laws and regulations ieiated to Charity and company law applicable in England and Wale, and we considered the extent to which non-compliance might have a material effect on the fi.nancial statements. We also considered those laws antl regulations that have a direct impact on the preparation of the financial statements Such as the Charities Art 2011. We evaluated management's incentives and opportunities for fraudulènt maniputstion of the financ￿1 statements lincluding'the risk of override of controls). ènd determined that the principal r￿kS were Page 16 PEACE HOSPICE CARE TRUSTEES REPORT FOR THE YEAR ENDED 31 MARCH 2022 related to revenue recognition. in particular in relation to income from donations. legacies and income from charitable actiVLties and management override of controls. Audit procedures perfDrmed by the engagement team included= Inspecting corrèspontlence with regvlatOfS.' Discussions with management including consideration of krKJwn or suspected instsnces of non-compliance with laws and regulation and Iraud,. Reviewing the controts and procedures of the Charity relevant to the preparation of the financial statements to ensure these were in plate throughout the year. including during the Covid-19 iemote working period." Reviewing debtors recoverab¢lity post year end. Reviewing managements decisions QA bad debt. Reviewing post balance sheet evenls. Evaluating managemenys controb designed to prevent and detect irregularities., Ident(fying and testing journals, in particular journal entries posted with unusual account combinat(ons. postings by unusual users or with unusual de51riptions, and Challer¥Jing assumptions and judgements made by management in thetr critical accoLtnting estimates. 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 1.725 822.204 1309.046 2.368.835 50.000 812.415 Peace H05pi¢e Care is grateful for the wonderful sup.port of the trusts and foundations that made donations towards our Core service costs a5 well as for restricted projects such as the Inpatient Unit refurbishment which took place over March and April 2017. The response to our need to refurbish Qui Starirght Lounge was fantastic and we rerna¢n grateful to funders such as the Peicy Bilton Charity and Graham Rowlandson Foundation who, amongst other5, supported this Project lo improve the quality of our environment lor our ouipatients_ Also. thank5 to Woolfson Foundation that funded the exterior works to our building including the new mèin entrarKe door and the Lord Jnd Lady Lurgèn Trusi of assisting Hospice at Home by a 9rant Page 34 PEACE HOSPICE CARE NOTES foTHE FINANCNL STATEMENTS FOR THE YEAR ENtED 31 PMRCH 2022 We remain grateful to all of our tfust funders who. by funding the ongoing costs of our se￿iCe$, enable the day-to-day work ol the Hospice lo continue. For that we cannot thank them enough and would specifically like to mentton.The Ch(Idwick Trust alld the Inman Char¢ty. èga(n to name a few, without whose support we would nol be able to continue. Restricted funds explanations: A number ol-other donations. including-those from The February Foundation and the.Lawton Trust contributed to our Hospice ai Home, Inpallent Unit and Wellbeing Services as well as the maintenance of the IPU garden. Unrestricted funds lthco Expendltyre Transfer Funds 20 2022 9Jins1105*e51 Unresiricted l￿d$ GTOIIP. General Funds Legacy Investment Fund Generdl Funds Re¥alUati￿ ReseNe- Lind and eslgnated Furtds Operaliwal Rese Property Fun Capital Programme fvJnd 1539.7LI LM737 S.9)5 Z3Z546 (344.110) 177Z2S7 L619.872 &9)5 4.047.489 1344.244 LJ8Q(XYJ 2.441505 135.374 L38q(Kil 1441505 135.374 IIL564 IIL564 Total Unrestrirted Funds &761232 4,047.489 3.451808 9,35&913 Transfer Seiween Funds Batsnce •t 31 March 2022 l April 2021 I￿oTne (Inc gain51 Expenditurè Unrestritted lunds Charyty GenewA Funds General Fund5 Revaluaiirn ResEive-Lind and t￿lId￿￿$ Legacy Investment Furrfr ¢$19n4ted Funds Operaiional Re5ewve pro[￿rtY Fund Capital PrOjrary￿￿ Fund L259.737 s.￿$ 1539.711 4.(h17,489 1344244 1344.1101. L6l&8n 5.905 3.772,257 231546 1.380. 1443.%J5 135.374 1,360.0th7 2.443.505 135.374 111.564 IIL564- Total Unresillct￿ FUTh &764.232 4,Cty17.489 3,455.8 9.355.913 The transfers from General Fund a￿ the É344.110 to the Legacy Inveyment Fund. Then the Legacy lThvestmenl Fund transfeNed £lll,564 to Ihe Capital programme Fund reco9nising the expenditu￿ on Fixed Asse Unrestrf