Annual Report and Financial Statements For the year ended 31 March 2022
Registered Charity No. 1003314 Company No. 02620879 (England and Wales)
Another year like no other, that is how the 2021 to 2022 financial year can be described and coronavirus (COVID-19) is again all pervasive throughout our Annual Report and Financial Statements
Words can’t describe how fantastic you have all been. We admire all of you. Thank you for taking care of us as a family, we appreciate everything you have done. No part of this journey was easy, but you made it bearable and helped make amazing memories, these are extremely precious.
Our Strategic Plan for the period 2020 to 2024 set out ambitions which would lead to substantial growth in income and thus, enable the expansion of our care services. Year 1 of COVID-19 in 2020 to 2021 produced a seismic shock to these ambitions and retrenchment became imperative. Accordingly, a COVID-19 Response Plan was agreed in which we confirmed that our overarching objectives remained relevant, but that it would take 2 years to return to levels of income and services.
We anticipated that in 2021 to 2022 the country would begin to emerge from COVID-19, but that there would still be operational disruption.
In financial terms, the year produced some unexpectedly positive results. While income from voluntary fundraising remained challenging, we saw retail profitability recover to pre-COVID-19 levels and in particular, the charity experienced an unexpectedly large rise in legacy donations. The latter was a major contributory factor to a year-end surplus. This surprising result enabled us to plan for substantial investment in our care services in 2022 to 2023.
Supported by our prioritisation tool the Hospice, Home and Virtual Care Model was further developed. This assisted with making sure our resources were better targeted, ensuring that we were able to support families when they needed us most. This approach was invaluable in 2021 to 2022, because, surprisingly, our care services experienced a greater level of disruption and consequent reduction in service capacity
due to the high transmission of the Omicron variant of COVID-19.
Notwithstanding operational difficulties; our excellent staff have continued to provide a safe and high-quality service which has supported so many of our families.
In 2021, the charity celebrated its 30th Anniversary since its foundation. We are especially proud of the service we have been able to provide, and incredibly proud of the thousands of supporters who have been inspired to help the cause. COVID-19 rules prevented us from being able to hold a large celebratory event, but we were thrilled that our Royal Patron HRH The Duchess of Cornwall was able to join a modest celebration at our first hospice, Little Bridge House. This proved to be an especially poignant and moving event.
While in general the outcome for the coming period remains uncertain, we are delighted to report that Children’s Hospice South West will enter the next year being able to make a substantial investment in expanding our care services; all of which have been made possible by the incredible support that we receive from all parts of the community.
We commend this, our Annual Report and Financial Statements to you.
Tricia Morris Eddie Farwell MBE Chair of Trustees Co-Founder and Chief Executive
Children’s Hospice South West - Annual Report and Financial Statements year ended 31 March 2022
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Contents
Trustees’ report (including the strategic report) for the year ended 31 March 2022 ..............................3
Financial statements ......................................22
Accounting policies ..........................................41 Basis of preparation and accounting policies ...............41 Audit report .........................................................45
Our objectives and activities ........................3
Our purpose, vision and ethos ........................................... 3 Organisational principles ..................................................... 3 Our core values and behaviours ........................................ 4 Our strategy ............................................................................ 5 Our achievements in 2021 to 2022 .................................. 6 Our key objectives for 2022 to 2023 ............................... 7 Hear how families have been supported this year ......12 Income generation ..............................................................14
Independent auditor’s report to the members of CHSW .................................................45
Structure, governance and management ............................................ 48 Reference and administration ...................52 Fundraising standards .....................................53 Committed to the highest standards ..............................53
Our financial performance .......................... 16
Our financial reserves ........................................................18 Our investment approach .................................................18 How we manage risks and uncertainties .......................19 Statement of Trustees’ responsibilities ..........................21
Trustees’ report (including the strategic report) for the year ended 31 March 2022
Our objectives and activities
Our purpose, vision and ethos
Our purpose is to make the most of short and precious lives and to put children, young people and their families at the centre of all we do.
Our vision is to provide high quality care services to every child and young person in the South West who may not live to their 18th birthday.
Our ethos is to ensure that everyone (Trustees, staff and volunteers) places children, young people and their families at the centre of the organisation.
In order to achieve this, everyone will be expected to promote a strong, caring, community environment, characterised by a culture of sensitivity, trust, consideration and respect for others.
Organisational principles
Our ethos gives rise to a set of principles which determine how Children’s Hospice South West (CHSW) as an organisation operates on a day to day basis. We will: Be an organisation which places children, appropriate opportunities to develop
appropriate opportunities to develop and gain new skills
young people and their families at the heart of all that we do
Be ethical, open, honest and compliant in all that we do
Continually engage with and listen to our children, young people and families, employees, volunteers and supporters Ensure that diversity, integrity, quality and respect are an integral part of all that we do
Be one organisation with common goals while tailoring services to individual families, and according to individual need Work collaboratively with our colleagues and external partners
Ensure that all staff, volunteers and supporters are valued and appreciated Ensure that everyone has the tools to do their job and are provided with
Spend the money we raise wisely with our focus being on the care we provide Be safe, efficient and environmentally aware.
Children’s Hospice South West - Annual Report and Financial Statements year ended 31 March 2022
Children’s Hospice South West - Annual Report and Financial Statements year ended 31 March 2022
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Trustees' report including the strategic report
Trustees' report including the strategic report
Our core values and behaviours
Everyone working for, or on behalf of CHSW will act to or with:
C are and respect for each other: H onesty, openness and accountability: S trive for excellence: W ork together: Recognising and Behaving with Seeking to Ensuring dynamic accepting our openness, integrity continuously develop and harmonious team responsibility and honesty and improve for your working in order to for safeguarding Communicating own benefit and for achieve success children and adults, swiftly and openly the charity Working with protecting them and listening to Always protecting and involving our from harm the views of others the reputation of the families, supporters Acting fairly and respectfully charity and volunteers, with consideration, Taking responsibility Celebrating success. understanding who treating others as for your own they are and what we would wish to be actions and being their needs might be treated ourselves accountable for them Making the best use Finding out what Sorting out mistakes of organisational other colleagues do, and concerns swiftly resources; encouraging them and without fuss. having regard to and recognising sustainability, the value that efficiency and each brings to the respect for the organisation environment.
Finding out what other colleagues do, encouraging them and recognising the value that each brings to the organisation
Embracing and recognising the importance of difference and diversity.
Our strategy
Following a review in November 2021, our strategic aims extending to 2024 were reviewed and agreed as follows:
Marketing
Funding
Care
We remain committed to providing high quality, safe services to children and young people who may not live to their 18th birthday. This includes respite care for the whole family and being responsive when families need us most, including at the end of life and support during bereavement. Our focus is to develop our care services sustainably, ensuring we utilise our 3 hospice bases and be there when families need us most.
To afford our care objectives by delivering a step change in income generation to deliver additional annual income in excess of £2 million (minimum) by 2024.
To re-energise our brand awareness and re-establish our positioning, ensuring we remain a leading brand name in the South West and the charity of choice for charitable giving.
Strategic priorities to deliver this aim by 2024:
Strategic priorities to deliver this aim by 2024:
Diversifying and developing Research and benchmark voluntary income streams brand/hospice awareness, Growing and strengthening including review of logo retail (including Gift Aid) recognition and evolution of brand identity Growing net income from CHSW Lottery Introduction of a campaign approach to drive brand Securing long term awareness and donor legacy pipelines acquisition Securing continuing Defining and segmenting target statutory funding (and audiences with clear messaging increasing where possible). to ensure donor retention and donation growth.
Strategic priorities to deliver this aim by 2024:
To have a Care Model that ensures we have capacity to offer respite care to children, young people and families
To develop and grow our clinical expertise and resilience to respond when families need us most
To offer families choices with flexibility on how they access our services and where they wish to be at the end of life
To build on the support services on offer including psychological support and sibling services.
Progress against our strategic aims will be monitored, reviewed, and evaluated by the Senior Management Team (SMT) on a regular basis and by the Assurance Committees through Key Performance Indicators (KPIs) and Board reports at each meeting (currently 4 times per year).
These strategic objectives are due to be reviewed in November 2022 and will be considered in-line with any ongoing challenges of COVID-19.
Public benefit
The Trustees confirm that they have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing the charity’s aims and objectives. The benefits are clearly set out in the achievement section on
page 6 to 13. The Trustees life-limited and life-threatening review the activities of the charity conditions and their families. against its aims and objectives on A referral process is in place, an ongoing basis and are satisfied with clear guidance on criteria, that all activities continue to to ensure that those who meet be related to its purpose. the criteria are offered support The beneficiaries are children by the charity. and young people living with
Children’s Hospice South West - Annual Report and Financial Statements year ended 31 March 2022
Children’s Hospice South West - Annual Report and Financial Statements year ended 31 March 2022
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Trustees' report including the strategic report
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Our achievements in 2021 to 2022
| 2021 to 2022 objectves | What we achieved |
|---|---|
| 1To ensure that the positve achievements during COVID-19 are retained (new ways of working) and our services are resumed as soon as this can be supported safely following Government guidelines. Ofering a responsive model that ofers families choice. |
We have embedded the Care Model of hospice, home and virtual and this responsive model has enabled us to support children, young people and families when they need it most. However, COVID-19 has contnued to be impactul with regulatory safety standards and staf sickness levels impactng on capacity, while demand remains high. This year has seen us be our most resourceful and fexible to contnue to give a priority service, but we recognise many families would have benefted from additonal support had this been possible. It is a key achievement that all end of life or emergency care has been supported and safe stafng has been maintained. |
| 2To contnue to develop and implement our Workplace Health, Safety and Wellbeing Strategy in response to ongoing COVID-19 challenges with forward vision to adapt to the changing workplace environment. |
Our wellbeing focus for 2022 was to keep staf feeling supported, motvated and engaged through a further period of change in our working, economic and social environments. Initatves included setng up a Hybrid Working Framework for ofce-based staf; introducing a Newsleter with a monthly wellbeing theme and a Wellbeing Day was awarded to all staf. We have contnued to promote the services of our Employee Assistance Programme and have maintained our management atenton on pastoral care. Our bi-annual Staf Survey had a wellbeing and COVID-19 focus. 89% of partcipatng staf agreed they had access to appropriate emotonal and mental health support at work. |
| 3To conclude the response phase of our COVID-19 Fundraising Strategy while investng and resourcing a more structured approach to Individual Giving for the future, contributng to our over-arching objectve to deliver an additonal £2 million income per year by 2024. |
We have been so grateful for the commitment and generosity of our supporters throughout the last year. We have been delighted to see a recovery in some areas of our fundraising most impacted by COVID-19 restrictons; most notably events and community fundraising. |
| 4To identfy new commercial opportunites with our trading actvites during the recovery period of COVID-19. Look to restore shop turnover and new sign-ups for the Raise a smile Lotery. |
Following the reopening of our shops in April 2021, our shop income and proftability has been very strong and has exceeded that seen prior to the onset of COVID-19. During the year, we relocated the Barnstaple and Wellington shops to more commercially viable and ft for purpose locatons. During the year, our Lotery Canvassing Teams have been very actve and have increased Raise a smile Lotery memberships by over 2,200 partcipants. |
| 5To contnue to develop new marketng strategies to increase donor acquisiton and retenton, reach new audiences and stand out in a new and potentally crowded marketplace. |
2021 saw the launch of our Brand Awareness campaign, ‘For all the tmes that mater,’ targetng a new demographic of supporters. A short flm featuring families who are supported through our 3 hospices was shown on live and on-demand TV as well as YouTube and social media. The flm focused on highlightng the support that CHSW ofers families ‘For all the tmes that mater.’ |
| 6To embed the Digital Transformaton Strategy into the organisaton and drive CHSW towards adoptng a digital frst culture. |
A new Digital Transformaton Steering Group has been developed and contnues to work on plans and initatves to embed a digital frst culture into the organisaton. The steering group ensures a joined up and collaboratve approach to the investment and development of new digital technologies across all directorates at CHSW. |
Our key objectives for 2022 to 2023
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1 To develop the service 3 Action our capital budget 5 To continue to look for more offer of care to families, to support our business fit for purpose shop sites and while supporting COVID-19 infrastructure and development undertake a refurbishment recovery with a focus on 4 With a new Fundraising programme of our existing increasing capacity and reach Strategy in place, we will return shops. In addition to invest of care services to children, income to pre-COVID-19 more in the existing shop young people and families. levels through community resource model (to provide This requires recruitment, fundraising and corporate resilience) and invest in the supporting the education partnerships in 2022 to 2023. shop IT support and development of our We also hope to learn about 6 To continue to develop fresh staff and collaboration with how events return and play a marketing strategies to other providers role in bringing people together increase donor acquisition
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2 To continue to develop and to raise funds for our vital and retention, and reach new embed our Workplace Health, work. Our increased resource audiences, with a focus on Safety and Wellbeing Strategy for Individual Giving will help planning, brand engagement, in response to the changing deliver a rejuvenated strategy content development, analysis, external environment with to maximise opportunities and evaluation. particular focus on emotional and financial wellbeing
Children’s Hospice South West - Annual Report and Financial Statements year ended 31 March 2022
Children’s Hospice South West - Annual Report and Financial Statements year ended 31 March 2022
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How we have supported our beneficiaries
Care activity; who we supporting
----- Start of picture text -----
parents or carers were supported
by CHSW in 2021/2022, an increase
of 10 from the previous year.
1,023
565
children and young people
were supported by CHSW
in 2021/2022, an increase
of 7 from the previous year.
were supported
siblings by CHSW in 2021/2022,
an increase of 13 from
the previous year.
927
----- End of picture text -----
What type of activity have we seen?
5,545 2,844 1,703 926 72 total bed nights family member night children or young day visits Starborn ** in 2021/2022. stays in the hospices people bed nights in 2021/2022, nights in This is an increase in 2021/2022, in 2021/2022, a decrease of 2021/2022, of 1,282 more bed an increase of an increase of 767 from the a decrease of nights than the 1,470 from the 611 from the previous year. 32 from the previous year. previous year. previous year. previous year. 1,963 881 308 1,395 parent or carer sibling night hospice resilience emergency *** nights stayed stays in bed nights bed nights in 2021/2022, 2021/2022, in 2021/2022, in 2021/2022, an increase of an increase of an increase of an increase of 1,057 from the 413 nights from 101 from the 510 from the previous year. 2020/2021. previous year. previous year*.
How we have supported and cared for our children, young people and families during coronavirus (COVID-19)
CHSW staff also have provided care and support in the family home; this was not a service we provided pre-COVID-19. This ‘at home’ care includes full care shifts, end of life care, symptom control, resilience visits, sibling visits, bereavement visits and covering a care package when other care providers are unable to.
It was vital that the hospices remained open 24 hours a day, 7 days a week, for:
in the number of neonates being transferred from hospital to our services for end of life care within the first few hours or days of life. The Care Teams have cared for more children and young people at the end of life over this past year, both in the hospices and for the first time, in the child’s own home, working alongside other healthcare professionals and partner providers.
- Children and young people at the end of their life
Children and young people requiring symptom management
Children and young people requiring step down care from acute services in hospital so that they did not need to stay in hospital any longer than necessary
CHSW Care, Sibling and Music partner providers. Therapy Teams have maintained Furthermore, the hospices regular virtual contact with have provided resilience stays children, young people and for children, young people, families and provided a range of and families. Support has been services and support. provided in varied ways, including Staff have also visited children day visits to the hospice for and young people when they outpatient treatments such as have been in hospital for a period administration of intravenous of time, either just to be a friendly medications (to prevent a visit to and familiar face, or to allow hospital), a symptom management the parents a few hours off assessment; or simply to have from sitting at the bedside. fun in the hydrotherapy pool or On a few occasions, there has to enjoy the garden facilities and been the opportunity to share be spoilt with afternoon tea and a knowledge and experience with well-earned rest.
Children and young people who would have ordinarily needed a hospital stay Children and young people requiring a place of safety who were at risk in other environments.
Staff have also visited children and young people when they have been in hospital for a period of time, either just to be a friendly and familiar face, or to allow the parents a few hours off from sitting at the bedside. On a few occasions, there has been the opportunity to share knowledge and experience with the Hospital Team specifically about the child or young person they were caring for.
We have seen an increase in the complexity of care needs for some of the children and young people; with more requiring admissions or support at home for symptom management. We have also sadly seen an increase
Care for... The whole family; mums, dads, brothers sisters, nans and grandads.
*In addition to this our Care and Medical Teams provide support and advice to other professionals caring for end of life children and young people who are not at the hospice.
**‘Starborn’ is the name given to the cold room in CHSW hospices that the children or young people stay in after death.
*** Some resilience nights were recorded as emergency nights due to the short notice period and been captured as emergency resilience.
Children’s Hospice South West - Annual Report and Financial Statements year ended 31 March 2022
Children’s Hospice South West - Annual Report and Financial Statements year ended 31 March 2022
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Making memories
An important part of caring for was turned into Lapland. Both the child, young person and whole were experiences the whole family family is helping them to make could enjoy and make precious memories and we continued to do memories from. Another family this at all our hospices throughout had the opportunity to be together this last year. One of the hospices as a family, including siblings and arranged a Spiderman visit for a grandparents, after the baby died child at the end of life; another at only a few days old.
We helped make a real difference through bereavement support
Bereavement support continues to be an intrinsic part of the holistic care provided within CHSW and has previously been highlighted in the support provided by the Care Team, including the Sibling Teams and the Music Therapists. All 3 hospices have supported bereaved families; Little Bridge House invited families to spend Christmas at the hospice and Little Harbour started a new group for bereaved dads and carers called ‘Dads in the Loop.’ This coastal path walking group proved more accessible for dads than a traditional support group. Charlton Farm recognised
that there were a group of recently bereaved parents whose children became ill with COVID-19 and subsequently died. The team set up a virtual group for these parents to meet each other as they have faced different challenges due to isolation from family and friends during COVID-19.
I do enjoy listening to other people’s experiences, realising I am not alone and being able to talk in a safe place. I guess it has been a comfort thing too.
We continued to provide Remembering events over the year at each of the hospices albeit virtually. These events provided the opportunity for families to gather for candle lighting events, to listen and talk and to be supportive of one another.
Meeting the needs of the siblings
We have continued to be responsive in meeting the needs of siblings, including those who are bereaved, in a variety of imaginative, innovative, and fun ways. Virtual support sessions for individuals and groups have been provided across all 3 hospices over Zoom. In addition to virtual sessions, we have provided
ongoing support during hospice day visits, garden visits, community visits and doorstep visits. Easter provided an opportunity for family Easter egg hunts around the gardens and the delivery of activity packs. We have been available and responsive to the needs of siblings when their families have been in the hospice for end of life care and through to providing ongoing bereavement support. We have responded to some of the COVID-19 related challenges for children and young people by delivering more focussed sessions; Charlton Farm responded to concerns regarding returning to school and how
to manage during the school holidays. We have also made sure that there continued to be fun activities provided not only for the siblings but also for the whole family. In addition to quizzes, bingo sessions over Zoom have continued to be extremely popular in each of the hospices.
We have been particularly isolated over COVID-19, so all the interactions have been a godsend.
My children LOVE the online sib’s bingo.
Staying safe during coronavirus (COVID-19): Infection, Prevention and Control (IPC)
The safety of CHSW staff, children, young people and families has been paramount throughout COVID-19 and our new ways of working. We have followed Public Health England (PHE) IPC guidance throughout and ensured our policies and practices were compliant with national guidance and legislation.
for as many children and young people and families to confirm people as possible. At CHSW we COVID-19 status (pre-stay and have always cared for the whole during the stay), we removed family, not just the referred child the zones, unless the child, or young person and we wanted young person or family was to be able to continue with COVID-19 positive; they were that model. To achieve this, we unable or unwilling to test; or continued to divide the hospices they expressed a preference to into zones and segregated the remain zoned. This has enabled a different families, if more than more ‘normal’ feel to the hospices 1 family was in the hospice. This with children, young people and was a significant departure from families being able to mix and the pre-COVID-19 feel of the enjoy more of the facilities on hospice where families chatting, offer. As IPC restrictions ease, forming friendships and support we are looking forward to the for each other was an important hospices being a more sociable part of their stay. Once we were space again. able to test the children, young
We have reviewed and adapted our practice to balance the risk posed by COVID-19, the restrictions placed upon us by national legislation, with keeping the hospices open and with as much capacity as possible, to care
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Hear how families have been supported this year
Zian died, just 5 days old at Little Harbour
the most precious gift we received from God.
Dad, Nelu describes the before his due date. We care they received. were so impressed by the place, all the staff came to We know Zian came say hi during our visit, they into our life with a reason, were all so friendly. I kept to change our way of wondering how it was seeing life. We don’t possible to see such lovely believe in coincidences, people all in one place, it and we don’t believe it felt as though it was all was random. We believe too good to be true.
Secondly, we met the most beautiful people here. They made us feel safe, comfortable and loved. We couldn’t believe how blessed we were.
We know Zian came into our life with a reason, to change our way of seeing life. We don’t believe in coincidences, and we don’t believe it was random. We believe he came at the perfect time, and he changed our lives in a good way.
There are not enough words to describe the staff at Little Harbour, they are true superheroes.
After we left on that day, we were silent, we realised what an effect Little Harbour had had on us. We didn’t know if we would return but, in our hearts, we had peace.
We found out about Zian’s condition during the pregnancy. We were scared when we first found out as we didn’t know anything about it, to be honest we didn’t know that such a syndrome even existed and we were very afraid of the unknown.
We had the chance for Zian to be baptised at Little Harbour and we were allowed to have our Priest visit at any time. We prayed together, we laughed, we sang and when it became too emotional we cried.
know anything about it, to When Zian was born, tests be honest we didn’t know confirmed the diagnosis that such a syndrome even of Patau Syndrome. existed and we were very This affects every single afraid of the unknown. cell of the body and As time went on during unfortunately, his heart was severely affected. the pregnancy, we got more and more nervous We knew we wanted to about how we would value every single second manage to spend quality of Zian’s life, we decided time with Zian and at the Little Harbour was where same time comfort him. we wanted to be.
My mother (Zian’s grandmother) was able to stay with us too, she doesn’t speak English but she didn’t need to, because the lovely staff are mind readers.
We were amazed to see the staff took care of us at Zian’s funeral. We came back to visit a few months later and we were reminded of that same feeling we had when we first visited, this place is a piece of heaven.
We were referred to Little I can’t explain in Harbour by the Outreach words how happy I am Sister. We didn’t know because we came here. this place existed and we We had the most beautiful didn’t know how to react. 5 days in our life. After she explained to Firstly, we were together, us what the hospice was the whole family and and how it could help, we we could create lovely decided to visit 3 weeks
Firstly, we were together, the whole family and we could create lovely memories together, this is
Gracie and her family have been visiting at Little Bridge House for several years
Like many teenage girls, Gracie is a very funny, Gracie, age 16, loves loving, happy girl. When animals and spending time we started coming to Little with her friends. But she Bridge House, she used has also had to overcome to run up and down the huge challenges. corridors with her walker, now she’s got no walking When she was 4 years old, ability or much of an Gracie was diagnosed with immune system.
the whole family has had to lockdown to protect Gracie. We have to be very cautious about things like coughs and colds as they can cause her to have a chest infection.
When she was 4 years old, Gracie was diagnosed with Ataxia Telangiectasia, a rare inherited progressive disorder that affects the nervous and immune system. There is no cure, and although she has lost much of her mobility over the years, her parents say their little girl hasn’t lost her fun-loving spirit.
The family look forward to time at Little Bridge House, where they can take a break from routine and spend time together.
We give her prophylactic antibiotics 3 days a week and an infusion of haemoglobin every fortnight to help her regenerate antibodies. It’s been very difficult during the COVID-19 as
It is a home-fromhome for us, a family orientated place full of happiness and joy.
Tayen has been visiting Charlton Farm since 2016
Tayen’s condition is incurable and causes tumours to grow on nerves anywhere in her body. She has complex epilepsy, hydrocephalus and is fully blind.
at the hospice, would have been too difficult for her and would have caused her a lot of distress.
and make some great memories:
The decision was made to epilepsy, hydrocephalus offer the family support and is fully blind. through day visits and Tayen is fiercely activities the whole family independent and thrives could enjoy, reinforcing on the ability to explore the positive relationships her environment freely between siblings and without restrictions. parents rather than being Knowing Tayen, as the constant care givers. the Care Team do, the The team helped Tayen restrictions brought on by and her family enjoy COVID-19, such as zoning
Woodland walk jumping in puddles! Visit to a hotel swimming pool for the whole family that the hotel kindly provided while it was closed during COVID-19
The team helped Tayen and her family enjoy activities together
Easter egg hunt in the family’s garden.
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Income generation
A year of celebrations
With the ongoing challenges of COVID-19 our long anticipated celebrations to mark 30 years of CHSW naturally adapted; of course, what didn’t change at all was the generosity of our incredible supporters and fundraisers across the South West.
gatherings and see the return of fundraising activities as varying COVID-19 restrictions allowed.
We want to record our grateful thanks to everyone who supported CHSW during the last year in so many different ways. Together we are continuing to make the most of short and precious lives.
We were delighted to have the chance to celebrate with people across the peninsula at 30th Anniversary Gala Dinners, enjoy time with friends during the Great Big South West Cream Tea
Despite the unpredictability of 2021 and 2022, we were delighted to see people doing all they could to support children, young people and families.
Take a look at some of the highlights of our fundraising activities from the year:
£462k raised during the return of in-person events, while continuing to take part in virtual events too! This included the welcome return of Ride for Precious Lives with 100 cyclists raising an incredible £240k.
Over £4.3m raised from your donations and purchases as our CHSW charity shop doors were happily flung wide open once more across the South West.
£1.1m this year from individual giving as people continued to generously support our work.
Supporters and fundraisers continued to Be Incredible across social media, with more Facebook fundraising events and birthday fundraisers than ever before.
We launched a brand awareness campaign For all the times that matter which was shown on live and on-demand TV as well as YouTube and social media.
Over 15,000
players this year in our Raise a smile Lottery who have contributed £772k to CHSW income.
£30k raised in our 30th year from the launch of our CHSW 30th Anniversary Business Club and all 100 places were filled.
£5.6m received
£844k received from charitable trusts and foundations.
from supporters who chose to remember CHSW with a gift in their will.
Our awesome volunteers
What a joy it has been to see so many of our volunteers coming back to be part of the action in 2021. Whether it was staging fundraising in a Friends Group, tending to the gardens at our hospices or making sure our shops were open and full of things to buy, it’s been so great to see them all.
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Children’s Hospice South West - Annual Report and Financial Statements year ended 31 March 2022
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Our financial performance
The consolidated financial statement comprises the result of the charity together with those of C H S W Promotions Limited, a wholly owned subsidiary, which donates it profits to the charity. The consolidated statement of financial activities is set out on page 22.
donation income encouragingly increased on 2020 to 2021 levels, they remained significantly lower than the levels seen prior to COVID-19 This was an understandable consequence of the ‘social contact’ nature of these voluntary donation income streams as restrictions were still very prevalent in 2021 to 2022. As we move into the 2022 to 2023 financial year, with the easing of restrictions, we are pleased to see that these income streams appear to be returning to pre-COVID-19 levels and are very thankful to our all supporters for this bounce back.
Total income for the year was £18,309,096 (2021:£18,785,933).
Total expenditure for the year amounted to £14,882,416 (2021:£15,610,688). This resulted in an operational surplus of £3,426,680 (2021:£3,175,245). Net gains on investments were £456,920 (2021:gains £1,644,615) and therefore net income for the year was £3,883,600 (2021:£4,819,860).
Donations and legacies amounted to £10,282,604 (2021:£12,810,769), income raised from charitable activities (statutory income sources) amounted to £2,234,989 (2021:£2,216,854), trading activities (including retail and Raise a smile Lottery) generated income of £5,101,470 (2021:£1,867,939), investment income was £534,176 (2021:£360,013) and other income £155,857 (2021: £1,530,359 including £1 million Coronavirus Job Retention Scheme income).
Consolidated in the above figures C H S W Promotions limited, a trading subsidiary, has a turnover which amounted to £284,861 (2021:£94,203) and a profit after taxation of £11,497 (2021:£15,525). The company will donate this amount to the charity. During 2021 to 2022 the financial impact of COVID-19 continued for the charity and while our community, corporate and event
During the year, we were very grateful to receive a continued exceptionally high level of legacy donations. Legacy receipts are always a significant part of CHSW’s annual income but,
Where we received our income
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Where we received our income
Legacies
£5.6 million - 31%
Trading - lottery and shops
£5.1 million - 28%
Voluntary fundraising
Legacies
£3.6 million - 19%
Statutory income Trading
£2.2 million - 12%
Trusts
£0.8 million - 4%
Investment income
£0.5 million - 3%
Voluntary
COVID-19 funding fundraising
£0.4 million - 2% Statutory
income
Other
£0.1 million - 1%
Total - £18.3 million
OtherCOVID-19
Investment income
Trusts
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by their very nature, can be difficult to predict and their level can vary significantly, both up and down, from 1 year to the next. Our legacy income in 2021 to 2022 amounted to £5,570,894 which although being £1 million lower than 2020 to 2021, was significantly higher than we anticipated. We are very encouraged by the continued growth seen from our legacy incomes which will help to support the long-term investment in our care development.
their highest levels ever at nearly £4.4 million as compared to £1.1 million in 2020 to 2021.
driven by the unprecedented level of legacy receipts, trust and grant income, and the strong performance of our retail shops.
Despite being significantly reduced from 2020 to 2021 levels, during the year the charity made use of the Government support for charities and businesses impacted by COVID-19 in relation to the Retail Start-up grants £141,633 , the dedicated grant support for UK Hospices £260,025 and the supply of free Personal Protective Equipment (PPE) (£238,481). In total, during 2021 to 2022, the charity was very grateful to receive over £0.4 million (2021: £3.7 million) of support from central Government to deal with the impact of COVID-19.
We recognise the positive level of net income that has been generated during the year and are very grateful to all our supporters and donors who have helped us achieve this. We are very mindful that the financial challenges of COVID-19 and the cost-of-living crisis are set to continue into 2022 to 2023 and beyond and that Government support to deal with the COVID-19 crisis has now stopped. It is therefore the intention for the net income surplus generated in 2021 to 2022 to be used to further support the charity during the ongoing economic challenges and to ensure the continuance of its care delivery into the future.
In mid April 2021, we were pleased to reopen our 38 shop. All shops have traded very strongly from this point benefiting from significant local community support together with the everincreasing public interest in making sustainable purchases. Total shop income (including related Gift Aid receipts) achieved
It should be noted that the increase in income and net income (after expenditure) reported in 2021 to 2022 has been largely
Where we spent our income
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Where we spent our income
Trading activities
£3.9 million - 26%
Charlton Farm
£3.5 million - 23% Charlton Farm
Little Harbour Trading
£2.9 million - 20% activities
Little Bridge House
£2.5 million - 17%
Raising funds
£2 million - 13% Little Harbour
Investment costs
£0.1 million - 1% Raising funds
Total - £14.9 million
Little Bridge
House
Investment costs
----- End of picture text -----
Children’s Hospice South West - Annual Report and Financial Statements year ended 31 March 2022
Children’s Hospice South West - Annual Report and Financial Statements year ended 31 March 2022
Page 17
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Trustees' report including the strategic report
Trustees' report including the strategic report
Our financial reserves
(representing 8.8 months of 2022 to 2023 budgeted expenditure) and £14,878,581 (representing 10.3 months of 2022 to 2023 budgeted expenditure).
the unrestricted tangible and intangible fixed assets of the group in addition to £7,972,315 designated for the creation of an expendable CHSW Care Endowment Fund (CCEF).
We recognise our commitment and moral obligation to the children, young people and families who currently use our services, will extend many years into the future. It is imperative, therefore, for us to maintain unrestricted general reserves at a level that will ensure the continuity of the unique service provided by the charity, while recognising that the charity is facing a period of significant economic uncertainty.
The charities unrestricted general funds (free reserves) were at a On the 14 July 2022, the CCEF level of £18,116,360 (note 19) as was formally and legally set of 31 March 2022 (£14,647,748 as up to provide an additional of 31 March 2021). We note that income stream from long-term the groups unrestricted general investments to support future funds are above their upper target care services and developments range of reserves by £3,237,779 and reduce future dependence on (excluding designated funds). It fundraising and trading activity. is our intention that, in the short The need for this fund has been to medium term, the charity highlighted during the COVID-19 utilise these surplus funds to help crisis where voluntary and deal with the continuing impact trading incomes have been found on the charity of COVID-19, to be vulnerable. The CCEF is the possibility and disruption expendable and will also be used from further outbreaks, and the to finance care, operational and worsening economic outlook with developmental opportunities in the current cost of living crisis the future if unrestricted general and the very likely possibility of reserves fall below their required a recession in the near future. lower target level. The surplus will be used to further invest in maintaining and developing a skilled, resilient and responsive hospice service.
In establishing the CHSW reserves policy, we have taken guidance from the Charity Commission’s guidance CC19, by using an integrated approach for an organisation with complex activities and structures. This involves projecting cash flows over the next 3 years and identifying key risks associated in this period, with both income and expenditure, while also considering already committed expenditure. From this work, looking forward, it has been determined that CHSW should maintain a target range of unrestricted general reserves of between £12,717,978
Designated funds are £27,510,380 (2021: £27,140,885) and represent the net book value of
Our investment approach
2020 to 2021 financial year, as part of good governance, a formal retendering process in relation to investment management services was undertaken, which included a review of investment performance and charges. As a result of this work, Aberdeen Standard Capital Limited and Sarasins & Partners LLP were appointed as CHSW investment managers going forward. As part of this restructuring of investment managers, CHSW investments
The charity’s investment policy requires CHSW to invest funds in such a manner that the risk profile reflects planned expenditure and future plans.
were rebalanced and divided into a
lower and higher equity exposure fund allocation. The minimum performance requirements of these invested funds have been set as Consumer Price Index (CPI) +3% for the lower equity exposed fund and CPI +4% for the higher equity exposed fund. As of the end of the 2021 to 2022 financial period, and since inception of the investment funds, these performance objectives were met.
In 2019, we secured the services of an external independent investment advisor to undertake an investment risk profile review and to provide an ongoing expert assessment on the performance of our appointed investment managers. At the beginning of the
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Care when...
Your child looks at
you but can’t tell
you how he’s
feeling.
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How we manage risks and uncertainties
CHSW has a clear Risk
The CHSW agreed process for reviewing risk, is as follows:
The Governance Assurance Committee will take assurance from the Chairs of each Committee that their relevant risks have been reviewed and mitigated to satisfactory levels Where assurance cannot be given, further review/oversight or Internal Audit may be recommended or pursued
Management Framework in place, overseen by the Trustee Governance Assurance Committee as delegated by the Board of Trustees. We undertake a continual assessment of the principal risks facing the charity and are satisfied that adequate preventative and mitigating measures are in place to reduce the risks to an acceptable level. All risks identified are recorded on the CHSW Risk Register and scored based on impact and likelihood in line with the Charity Commission’s guidance CC26, based on the scores, the risks are prioritised using a Red, Amber, Green rating.
SMT will meet weekly to monitor and review current risks; and share, record and escalate any new or emerging risks as appropriate
SMT will meet as the Risk Management Committee every or Internal Audit may be quarter where the risk register recommended or pursued is reviewed and updated. The Governance Assurance Identified risks may be added Committee will report to the to the register at any time Board annually.
Each item on the risk register is owned and overseen by the relevant Assurance Committee as a standing item at each of their meetings (currently 3 times per year)
Children’s Hospice South West - Annual Report and Financial Statements year ended 31 March 2022
Children’s Hospice South West - Annual Report and Financial Statements year ended 31 March 2022
Page 19
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Trustees' report including the strategic report
Trustees' report including the strategic report
Current red risks
Committee continuing to meet on a monthly basis. An Omicron Emergency Response Plan was implemented in January 2022 with the emergence of the new variant. In the last quarter of the year, the impact of the new variant has been significant in terms of short notice staff absence due to COVID-19 or related reasons which has put a serious strain on our service delivery, particularly in both care and retail. We have remained responsive, flexible and safe during this testing period.
Recruitment: Inability to recruit and retain children’s nurses; as reflected in the national picture, exacerbated by COVID-19, this remains an ongoing and challenging red risk for CHSW. Salary and benefits benchmarking against the NHS are carried out on an annual basis to ensure we are competitive. New and different ways of working in 2020 to 2021 continued into 2021 to 2022. The new Care Model has created development opportunities and new career pathways to explore, supporting and encouraging the recruitment and retention of staff through a very difficult period.
security together with the increased risk presented by the Ukraine/Russia crisis. In 2021 to 2022 CHSW carried out the annual full cyber security audit (by an external provider). CHSW are implementing the recommendations of the audit. CHSW have installed firewalls at each hospice in line with our new Jisc internet connections. We successfully met the standards of the NHS Data Security Toolkit in 2021. Our IT partners (Commercial IT) continue to monitor and update our systems. CHSW IT regularly send simulated phishing emails and training packages to ensure staff remain vigilant and educated on the risks. Annual Data Security Awareness training is mandatory for all office based and care staff.
Safeguarding issues arising: Safeguarding is a top priority at CHSW with stringent policies, procedures and mandatory training in place for all staff. We continue to be vigilant and diligent; audit our policies and practices carefully; and embed our values and behaviours to reflect our ethos and duty of care.
COVID-19: The risk to operations remained our key red risk throughout 2021 to 2022 with elements of risk impacting on every aspect of the organisation. Board meetings continued virtually, falling back into a more usual pattern as the impact of COVID-19 became more understood, with only the Investment and Finance Assurance
Included on page 48 are the charities structure, governance and management, reference and administrative detail and fundraising disclosures which also form part of this report.
Failure of cyber security: Reflecting the global rise in criminal activity around data
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Care when...
You need someone
to talk to and
someone to
listen.
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Statement of Trustees’ responsibilities
The Trustees (who are also Directors of CHSW for the purposes of company law) are responsible for preparing the Trustees’ Annual Report (including the Strategic Report) and the financial statements, in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards).
The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company’s transactions, 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 and the provisions of the charity’s constitution. They are also responsible for safeguarding the assets of the charity and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Company law requires the Trustees to prepare financial statements for each financial year. Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and the group and of the incoming resources and application of resources, including the income and expenditure, of the charitable group for that period. In preparing these financial statements, the Trustees are required to:
Disclosure of information to Auditors
Insofar as each of the Trustees of the charity at the date of approval of this report is aware, there is no relevant audit information (information needed by the charity’s auditor in connection with preparing the audit report) of which the charity’s auditor is unaware. Each Trustee has taken all of the steps that he/she should have taken as a Trustee in order to make himself/herself aware of any relevant audit information and to establish that the charity’s auditor is aware of that information.
Select suitable accounting policies and then apply them consistently
Observe the methods and principles in the Charities Statement of Recommended Practice (SORP)
Make judgements and estimates that are reasonable and prudent
Approval
This report, incorporating the strategic report, was approved by the Board of Trustees on 14 July 2022 and signed on its behalf:
State whether applicable UK accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.
Tricia Morris Chair of Trustees
Children’s Hospice South West - Annual Report and Financial Statements year ended 31 March 2022
Children’s Hospice South West - Annual Report and Financial Statements year ended 31 March 2022
Page 21
Page 20
Financial statements
Financial statements
Consolidated statement of financial activities
Including income and expenditure account for the year ended 31 March 2022
| Notes | Unrestricted funds £ |
Restricted funds £ |
Endowment funds £ |
Total 2022 funds £ |
Total 2021 funds £ |
|
|---|---|---|---|---|---|---|
| Income from | ||||||
| Donatons and legacies | 1 | 7,511,642 | 2,770,962 | - | 10,282,604 | 12,810,769 |
| Charitable actvites: Statutory funding |
4 | 996,013 | 1,238,976 | - | 2,234,989 | 2,216,854 |
| Trading actvites | 3 | 5,101,470 | - | - | 5,101,470 | 1,867,939 |
| Investments | 2 | 475,078 | 59,098 | - | 534,176 | 360,013 |
| Other | 155,857 | - | - | 155,857 | 1,530,358 | |
| Total income | 5 | 14,240,060 | 4,069,036 | - | 18,309,096 | 18,785,933 |
| Expenditure on | ||||||
| Trading actvites | 3 | 3,948,812 | - | - | 3,948,812 | 4,653,991 |
| Total income net of trading expenditure |
10,291,248 | 4,069,036 | - | 14,360,284 | 14,131,942 | |
| Expenditure on | ||||||
| Raising funds | 1,969,748 | - | - | 1,969,748 | 1,750,573 | |
| Investment management fees | 100,374 | - | - | 100,374 | 71,663 | |
| Net income available for charitable actvites |
8,221,126 | 4,069,036 | - | 12,290,162 | 12,309,706 | |
| Charitable actvites | ||||||
| Care of children, young people and families |
6 | 4,856,017 | 4,007,465 | - | 8,863,482 | 9,134,461 |
| Total expenditure | 6 | 10,874,951 | 4,007,465 | - | 14,882,416 | 15,610,688 |
| Net income before gains on investments |
10 | 3,365,109 | 61,571 | - | 3,426,680 | 3,175,245 |
| Net gain on investments | 13b | 419,404 | - | 37,516 | 456,920 | 1,644,615 |
| Net income | 3,784,513 | 61,571 | 37,516 | 3,883,600 | 4,819,860 | |
| Transfer between funds | 17, 18, 19 | 53,595 | (53,595) | - | - | - |
| Net movement in funds | 3,838,108 | 7,976 | 37,516 | 3,883,600 | 4,819,860 | |
| Reconciliaton of funds | ||||||
| Total funds brought forward | 17, 18, 19 | 41,788,633 | 601,550 | 1,605,712 | 43,995,895 | 39,176,035 |
| Total funds carried forward | 17, 18, 19 | 45,626,741 | 609,526 | 1,643,228 | 47,879,495 | 43,995,895 |
Consolidated and charity balance sheet
Company number: 02620879
As at 31 March 2022
| Notes | Group 2022 £ |
Group 2021 £ |
Charity 2022 £ |
Charity 2021 £ |
|
|---|---|---|---|---|---|
| Fixed assets | |||||
| Tangible assets | 11 | 19,891,294 | 20,472,357 | 19,891,294 | 20,472,357 |
| Intangible assets | 12 | 26,770 | 122,913 | 26,770 | 122,913 |
| Investments | 13a | 20,577,682 | 15,046,858 | 20,577,782 | 15,046,958 |
| Total | 40,495,746 | 35,642,128 | 40,495,846 | 35,642,228 | |
| Current assets | |||||
| Stock | 14 | 25,592 | 21,846 | - | - |
| Debtors | 15 | 4,717,581 | 4,079,713 | 4,745,497 | 4,099,169 |
| Investments | 13c | 454,944 | 452,341 | 454,944 | 452,341 |
| Cash at bank and in hand | 5,606,929 | 6,482,467 | 5,589,340 | 6,462,678 | |
| Total | 10,805,046 | 11,036,367 | 10,789,781 | 11,014,188 | |
| Creditors falling due within 1 year | 16a | (1,998,638) | (1,097,947) | (1,995,173) | (1,091,593) |
| Net current assets | 8,806,408 | 9,938,420 | 8,794,608 | 9,922,595 | |
| Creditors falling due afer 1 year | 16b | (1,422,659) | (1,584,653) | (1,422,659) | (1,584,653) |
| Total net assets | 47,879,495 | 43,995,895 | 47,867,795 | 43,980,170 | |
| Funds of the group and charity | |||||
| Endowment fund | 17 | 1,643,228 | 1,605,712 | 1,643,228 | 1,605,712 |
| Restricted funds | 18 | 609,526 | 601,550 | 609,526 | 601,550 |
| Unrestricted designated funds | 19 | 27,510,380 | 27,140,885 | 27,510,380 | 27,140,885 |
| Unrestricted general fund | 19 | 18,116,361 | 14,647,748 | 18,104,661 | 14,632,023 |
| Total group and charity funds | 20 | 47,879,495 | 43,995,895 | 47,867,795 | 43,980,170 |
Of the net movement in funds for the year of £3,883,600 (2021:£4,819,860), an amount of £3,887,625 (2021:£4,814,269) has been dealt with in the Statement of Financial Activities of the parent company.
The financial statements were approved and authorised for issue by the Board of Trustees on 14 July 2022 and signed on its behalf:
Tricia Morris Chair of Trustees
The statement of financial activities includes all gains and losses recognised in the year, all income and expenditure derive from continuing activities of the group. The accounting policies on page 41 to 44 and the notes to the accounts on page 25 to 40 form part of these financial statements.
Children’s Hospice South West - Annual Report and Financial Statements year ended 31 March 2022
Children’s Hospice South West - Annual Report and Financial Statements year ended 31 March 2022
Page 23
Page 22
Financial statements
Financial statements
Consolidated cash flow statement
For the year ended 31 March 2022
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2022 2021
Notes
£ £
Cash provided by operating activities 28a 4,168,663 4,591,334
Cash flows from investing activities
Deposit interest received 1,464 3,458
Investment income received 429,607 225,814
Rental income received 2,744 9,040
Cash flows from investing activities 433,815 238,312
Capital expenditure and financial investment
Purchases of tangible and intangible fixed assets:
Charlton Farm (392) (21,278)
Other assets (378,824) (295,186)
Purchases of tangible and intangible fixed assets (379,216) (316,464)
-
Proceeds from sales of tangible fixed assets 1,200
Fixed asset investments
Payments (5,100,000) (2,000,000)
Fixed asset investments (5,100,000) (2,000,000)
Capital expenditure and financial investment (5,478,016) (2,316,464)
Net cash provided (used in) investing activities (5,044,201) (2,078,152)
Change in cash and cash equivalents in the reporting period 28b (875,538) 2,513,182
Cash and cash equivalent at the beginning of the year 6,482,467 3,969,285
Total cash and cash equivalent at the end of the year 5,606,929 6,482,467
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Care when...
You need the
time to breathe.
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Notes to the financial statements
For the year ended 31 March 2022
1 Donations and legacies
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Total 2022 Total 2021
£ £
Individuals 2,269,734 1,977,519
Friends Group fundraising 154,755 57,445
Legacies 5,570,894 6,541,232
Grants and donations from Charitable Trusts 844,423 950,003
Government Grant - NHS England COVID-19 funding 260,025 2,226,126
Other voluntary income 1,182,773 1,058,444
Total 10,282,604 12,810,769
----- End of picture text -----**
**The NHS England awarded funding to allow the hospice to make available bed capacity and community support from April 2020 to March 2022 to provide support to people with complex needs in the context of COVID-19.
2 Investment income
| Total 2022 £ |
Total 2021 £ |
|
|---|---|---|
| UK | 209,093 | 143,312 |
| Overseas | 48,947 | 35,626 |
| Mult-asset funds | 265,650 | 168,577 |
| Income from cash deposits | 1,456 | 3,458 |
| Rental income | 9,030 | 9,040 |
| 534,176 | 360,013 |
Children’s Hospice South West - Annual Report and Financial Statements year ended 31 March 2022
Children’s Hospice South West - Annual Report and Financial Statements year ended 31 March 2022
Page 25
Page 24
Financial statements
Financial statements
3 Income and expenditure of trading activities
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Total 2022 Total 2021
Trading income
£ £
C H S W Promotions Limited 284,861 94,203
Lottery and raffles 772,211 718,277
Donations relating to the sale of goods where the shops acted as agent 1,178,330 283,344
Gift Aid received on donations where the shops acted as agent 292,476 68,678
Shops turnover 2,573,592 703,437
Total 5,101,470 1,867,939
Trading expenditure
C H S W Promotions Limited 273,364 78,679
Lottery and raffles 350,567 183,257
Shops (all associated costs including depreciation) 3,398,220 3,062,055
Dilapidations provision (73,339) 1,330,000
Total 3,948,812 4,653,991
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The principal activity of the charity’s wholly owned subsidiary, C H S W Promotions Limited (company number 02645823) is the sale of bought-in goods, including Christmas cards, through the charity shops of the parent charity and through its network of Friends Groups and by mail order.
The income and expenditure of C H S W Promotions Limited are disclosed as ‘trading’ income and expenditure in the Consolidated Statement of Financial Activities on page 22.
the Consolidated Statement of Financial Actvites on page 22. |
||
|---|---|---|
| C H S W Promotons Limited | Total 2022 £ |
Total 2021 £ |
| Turnover | 284,861 | 94,203 |
| Total expenditure | (273,364) | (78,678) |
| Operatng proft and proft before tax | 11,497 | 15,525 |
| Taxaton | - | - |
| Proft afer taxaton | 11,497 | 15,525 |
| Retained earnings at the beginning of the year | 15,725 | 10,134 |
| Distributon of retained earnings as Gif Aid donaton to parent | (15,525) | (9,934) |
| Retained earnings at the end of the year | 11,697 | 15,725 |
| Assets | 43,268 | 41,742 |
| Liabilites | (31,471) | (25,917) |
| Net assets | 11,797 | 15,825 |
4 Income from charitable activities
| Total 2022 £ |
Total 2021 £ |
|
|---|---|---|
| Funding from regional Clinical Commissioning Groups (CCGs) | 996,013 | 1,017,154 |
| NHS England Children's Hospice grant | 1,205,176 | 1,164,351 |
| NHS England Superannuaton grant | 33,800 | 33,800 |
| NHS England Health educaton placements | - | 1,549 |
| Total income from charitable actvites | 2,234,989 | 2,216,854 |
CHSW acknowledges the award of grants for Little Bridge House, Charlton Farm and Little Harbour from the NHS England Children’s Hospice grant. The project undertakes to sustain and develop existing high quality hospice care for palliative care children and young people, their siblings and parents. It promotes education and learning needs of all those working in the sector in a responsive and flexible way. The funding and associated expenditure have been treated as movements in restricted funds.
In 2010 the charity succeeded in establishing contractual arrangements with the 6 CCGs whose areas the charity covers. These arrangements were constructed at the behest of government. A price per bed night has been agreed and it has also been agreed the volume of bed nights each CCG will purchase. There are no unfulfilled conditions in respect of these contractual arrangements.
5 Government grants
Included within donations and legacies and other income were government grants recognised in the year ended 31 March 2022
31 March 2022 |
||
|---|---|---|
| Total 2022 £ |
Total 2021 £ |
|
| COVID-19 Job Retenton Scheme | - | 1,010,628 |
| Retail, Hospitality and Leisure Grant Fund | 141,633 | 511,914 |
| NHS England Covid Funding** | 260,025 | 2,226,126 |
| Total | 401,658 | 3,748,668 |
**The 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 2022 for the same purpose.
Dear all, this is a note to say a huge thank you for all your help and kindness over the years. You have been our guardian angels over the years in fun times and in stress and crisis times. You will be sorely missed by our whole family but in particular by our children who have needed your loving shelter from time to time.
Children’s Hospice South West - Annual Report and Financial Statements year ended 31 March 2022
Children’s Hospice South West - Annual Report and Financial Statements year ended 31 March 2022
Page 27
Page 26
Financial statements
Financial statements
6 Total expenditure
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Staff costs Direct costs Support costs Total 2022 Total 2021
£ £ £ £ £
note 8 note 7
-
Costs of raising funds 3,332,631 2,686,303 6,018,934 6,476,227
Care of children, young
6,615,638 1,673,096 574,748 8,863,482 9,134,461
people and families
Total 9,948,269 4,359,399 574,748 14,882,416 15,610,688
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Governance costs of £44,936 are included within support costs and comprise the costs of running the charity. This includes insurance £1,815, external audit £18,979, internal audit £3,040, consultancy fees and legal advice for the Trustees £21,102 and all costs of complying with constitutional and statutory requirements such as the costs of Board and Committee meetings £nil.
7 Support costs
| Support costs reallocated to the expenditure category of care | Total 2022 £ |
Total 2021 £ |
|---|---|---|
| Communicatons and IT | 490,498 | 522,539 |
| Human Resources | 346,165 | 311,721 |
| Governance | 44,936 | 32,838 |
| Finance | 359,931 | 415,045 |
| Head Ofce Support | 392,029 | 451,404 |
| Retail grant provision | (84,884) | 254,653 |
| Total support costs | 1,548,675 | 1,988,200 |
| Less: staf costs | (973,927) | (934,118) |
| Total | 574,748 | 1,054,082 |
8 Employee information
| Staf costs | Total 2022 £ |
Total 2022 £ |
Total 2021 £ |
Total 2021 £ |
|---|---|---|---|---|
| Salaries and wages | 8,428,342 | 8,058,110 | ||
| Social security costs | 716,412 | 672,156 | ||
| Pension costs | 803,515 | 723,845 | ||
| Total | 9,948,269 | 9,454,111 | ||
| Average number of persons employed | FTE 2022* |
Total 2022 |
FTE 2021* |
Total 2021 |
| Hospice services | 132 | 168 | 136 | 175 |
| Fundraising and publicity | 42 | 52 | 44 | 57 |
| Trading | 71 | 110 | 73 | 105 |
| Management and Finance | 20 | 24 | 19 | 22 |
| Total | 265 | 354 | 272 | 359 |
5 employees earned between £60,000 and £70,000 per annum in the year (2021:4). 3 employees earned between £70,000 and £80,000 per annum in the year (2021:3). 2 employees earned between £80,000 and £90,000 per annum in the year (2021:2). 1 employee earned between £90,000 and £100,000 per annum in the year (2021:nil). 1 employee earned between £100,000 and £110,000 per annum in the year (2021:1).
Retirement benefits are accruing under a defined benefit scheme for 4 (2021:3) of these higher paid employees. In addition, the charity paid £54,926 (2021:£51,130) into a defined contribution pension scheme for 8 (2021:7) of these higher paid employees. Salaries and wages include contributions in respect of salary exchange agreements in addition to contractual salary.
Following advice from the Government Actuary’s Department as part of the 2016 scheme valuation process, the Department of Health and Social Care (DHSC) confirmed the employer contribution rate will increase to 20.68% with effect from 1 April 2019. The government has committed to cover this cost increase for a certain category of employer’s, including CHSW, recurring annually until 31 March 2023.
All Trustees and certain senior employees who have authority and responsibility for planning, directing and controlling the activities of the charity are considered to be key management personnel. Total employment costs (including social security and pension contributions) in respect of senior employees is £591,213 (2021:£567,678). As stated in note 9, there is no cost of employment in respect of the Trustees.
During the year, redundancy and settlement payments were made totalling £10,278 (2021:£17,183). At 31 March 2022 the payments outstanding were nil (2021:£5,690).
*Full time equivalent.
9 Trustees remuneration and related party transactions
None of the Directors or Trustees received emoluments or benefits in kind during the year in respect of their duties as a Trustee (2021:nil). None of the Directors or Trustees received reimbursement of expenses in the year (2021:nil) for travel and subsistence.
During the year the charity recharged expenses of £159,523 (2021:£33,457) to C H S W Promotions Limited and remittances were £151,080 (2021:£46,426). The amount due from C H S W Promotions at the year end was £28,006 (2021:£19,563) which is included in debtors. Included within this debtor is management recharges of £158,172 (2021:£33,457).
Children’s Hospice South West - Annual Report and Financial Statements year ended 31 March 2022
Children’s Hospice South West - Annual Report and Financial Statements year ended 31 March 2022
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10 Net income for the year
The net income is stated after charging
| Total 2022 £ |
Total 2021 £ |
|
|---|---|---|
| Depreciaton and amortsaton of owned tangible and intangible fxed assets | 1,056,422 | 1,167,498 |
| Loss on disposal of fxed assets | 1,200 | 110,655 |
| Operatng lease rentals | 858,501 | 784,655 |
| Auditor's remuneraton - audit fees | 17,219 | 17,085 |
| Auditor’s remuneraton - other fees | 4,561 | 9,185 |
11a Freehold land and properties
----- Start of picture text -----
Little Bridge House Charlton Farm Little Harbour Total
£ £ £ £
Cost
At 1 April 2021 3,480,452 12,501,679 5,715,306 21,697,437
Additions - 392 - 392
At 31 March 2022 3,480,452 12,502,071 5,715,306 21,697,829
Depreciation
At 1 April 2021 1,134,091 1,069,039 417,831 2,620,961
Charged in the year 101,311 271,656 94,427 467,394
At 31 March 2022 1,235,402 1,340,695 512,258 3,088,355
Net book value
At 31 March 2021 2,346,361 11,432,640 5,297,475 19,076,476
At 31 March 2022 2,245,050 11,161,376 5,203,048 18,609,474
----- End of picture text -----
Included in the above is land totalling £2,947,681 which is not depreciated.
11 Tangible fixed assets
12 Intangible fixed assets
----- Start of picture text -----
Freehold Leasehold Motor Office Fittings Total Computer software
land and property vehicles furniture and and other £ £
properties £ £ equipment equipment
Cost
£ £ £
At 1 April 2021 745,278
Cost
-
Additions
At 1 April 2021 21,697,437 501,267 283,475 1,108,726 3,184,986 26,775,891
-
Disposals
Additions 392 19,382 14,771 170,438 174,233 379,216
- At 31 March 2022 745,278
Disposals (14,497) (15,000) (8,637) (51,788) (89,922)
Depreciation
At 31 March 2022 21,697,829 506,152 283,246 1,270,527 3,307,431 27,065,185
Depreciation At 1 April 2021 622,365
Charged in the year 96,143
At 1 April 2021 2,620,961 307,821 262,079 840,577 2,272,096 6,303,534
-
Disposals
Charged in the year 467,394 74,126 17,564 124,030 277,165 960,279
- At 31 March 2022 718,508
Disposals (14,496) (15,000) (8,637) (51,789) (89,922)
Net book value
At 31 March 2022 3,088,355 367,451 264,643 955,970 2,497,472 7,173,891
At 31 March 2021 122,913
Net book value
At 31 March 2022 26,770
At 31 March 2021 19,076,476 193,446 21,396 268,149 912,890 20,472,357
At 31 March 2022 18,609,474 138,701 18,603 314,557 809,959 19,891,294
----- End of picture text -----
All of the assets above are used on a continuing basis in pursuit of the charity’s activities.
Children’s Hospice South West - Annual Report and Financial Statements year ended 31 March 2022
Children’s Hospice South West - Annual Report and Financial Statements year ended 31 March 2022
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Financial statements
Financial statements
13a Investments
| Group 2022 £ |
Group 2021 £ |
Charity 2022 £ |
Charity 2021 £ |
|
|---|---|---|---|---|
| Listed investments | ||||
| UK equites and bonds at cost | 3,798,240 | 2,174,223 | 3,798,240 | 2,174,223 |
| Overseas equites and bonds at cost | 3,471,399 | 2,500,730 | 3,471,399 | 2,500,730 |
| Mult-fund assets at cost | 9,691,774 | 8,141,189 | 9,691,774 | 8,141,189 |
| Other assets at cost | 1,665,667 | 1,100,176 | 1,665,667 | 1,100,176 |
| Cumulatve net gains on revaluaton at period end | 1,472,384 | 859,219 | 1,472,384 | 859,219 |
| Market value at period end (note 13b) | 20,099,464 | 14,775,537 | 20,099,464 | 14,775,537 |
| Cash held as part of investment portolios | 392,218 | 185,321 | 392,218 | 185,321 |
| 20,491,682 | 14,960,858 | 20,491,682 | 14,960,858 | |
| Other investments | ||||
| Donated land held for investment purposes (note 27) | 86,000 | 86,000 | 86,000 | 86,000 |
| Investment in C H S W Promotons Limited | - | - | - | - |
| Shares at cost | - | - | 100 | 100 |
| Total | 20,577,682 | 15,046,858 | 20,577,782 | 15,046,958 |
The charity’s investment portfolio was managed by Cazenove Capital Management (until November 2020), Aberdeen Standard (from July 2020) and Sarasin & Partners throughout the period. Investments are held in a diverse portfolio, managed by Sarasin, Cazenove, Aberdeen Standard and other fund managers, and in Government stocks.
C H S W Promotions Limited is a wholly owned subsidiary which is registered in England and Wales and whose principal activity is the sale of bought-in goods for the benefit of CHSW. The shares are Ordinary Shares of £1 each and are shown at cost. The company pays its taxable profits to the charity under Gift Aid.
----- Start of picture text -----
14 Stock
Group 2022 Group 2021 Charity 2022 Charity 2021
£ £ £ £
Stock for resale 25,592 21,846 - -
15 Debtors
Group 2022 Group 2021 Charity 2022 Charity 2021
£ £ £ £
- -
Amounts owed by group undertakings 28,006 19,563
Legacies receivable 3,522,804 2,810,639 3,522,804 2,810,639
Other debtors including tax recoverable 479,266 274,875 479,176 274,768
Prepayment and accrued interest 715,511 994,199 715,511 994,199
4,717,581 4,079,713 4,745,497 4,099,169
----- End of picture text -----
13b Listed investments market value
| Listed investments | 2022 £ |
2021 £ |
|---|---|---|
| Market value at 1 April | 14,775,537 | 11,096,745 |
| Additons at cost | 5,929,971 | 13,247,994 |
| Sales proceeds | (1,062,964) | (11,209,263) |
| Equalisatons | - | (4,554) |
| Net gains | 456,920 | 1,644,615 |
| At 31 March 2022 | 20,099,464 | 14,775,537 |
| 13c Current asset investment | ||
| 2022 £ |
2021 £ |
|
| Investment in Hope Cove | 454,944 | 452,341 |
16a Creditors less than 1 year
| Group 2022 £ |
Group 2021 £ |
Charity 2022 £ |
Charity 2021 £ |
|
|---|---|---|---|---|
| Trade creditors | 146,710 | 155,779 | 146,684 | 155,720 |
| Taxaton and social security | 174,979 | 162,501 | 174,979 | 162,501 |
| Sundry creditors | 188,552 | 145,069 | 188,552 | 145,069 |
| Accruals and deferred income | 1,488,397 | 634,598 | 1,484,958 | 628,303 |
| 1,998,638 | 1,097,947 | 1,995,173 | 1,091,593 |
Deferred income of £1,133,296 arose in the year and £376,554 brought forward from 2020 to 2021 was released.
Deferred income includes income relating to registrations and sponsorship for upcoming events £138,813 (2021:£387,366), lottery subscriptions for future draws £98,154 (2021:£89,188) and grant income of £808,804 (2021:£130,000).
Children’s Hospice South West - Annual Report and Financial Statements year ended 31 March 2022
Children’s Hospice South West - Annual Report and Financial Statements year ended 31 March 2022
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Financial statements
Financial statements
16b Creditors more than 1 year
| Group 2022 £ |
Group 2021 £ |
Charity 2022 £ |
Charity 2021 £ |
|
|---|---|---|---|---|
| Dilapidatons provisions | 1,252,890 | 1,330,000 | 1,252,890 | 1,330,000 |
| Retail grant provisions | 169,769 | 254,653 | 169,769 | 254,653 |
| 1,422,659 | 1,584,653 | 1,422,659 | 1,584,653 |
Dilapidations provision. During 2020 to 2021 COVID-19 had caused CHSW to review its Retail Strategy. It has therefore created a dilapidation provision for each of its shops. As each of CHSW’s shop leases comes to an end there is likely to be a dilapidation cost, if CHSW leave the premises, at this point the provision will be released. At the time of departure the dilapidations cost will be assessed by surveyors and may differ from the estimate made.
Retail grant provision. During 2020 to 2021 CHSW was in receipt of a number of retail grants (note 5) due to COVID-19. During the period 5 January 2021 to 15 February 2021 there was some ambiguity in the guidance due to the uncertainty following Brexit. CHSW sought appropriate legal council which advised that we were highly likely to be permitted by the subsidy rules to claim these grants, however it was agreed that a provision be established in case there was any requirement to repay. The amounts are being released over 3 years as the risk reduces of there being a payment required.
17 Endowment fund
During 2007 the charity received an expendable endowment of £1 million, the income from which is restricted. This income funds care staff costs at Charlton Farm and, in particular, the post of Head of Care. Income in 2021 to 2022 is £59,098 (2021:£48,650) and is included in restricted funds income on the Statement of Financial Activities. The gain in 2021 to 2022 is £37,516 (2021:£205,056).
| 1 April 2021 £ |
Income £ |
Expenditure £ |
Gains £ |
31 March 2022 £ |
|
|---|---|---|---|---|---|
| Endowment | 1,605,712 | - | - | 37,516 | 1,643,228 |
| 1 April 2020 £ |
Income £ |
Expenditure £ |
Gains £ |
31 March 2021 £ |
|
| Endowment | 1,400,656 | - | - | 205,056 | 1,605,712 |
----- Start of picture text -----
Care when...
You’re not sure how
to talk to your
friends or your
family.
----- End of picture text -----
18 Restricted funds
| 18 Restricted funds | |||||
|---|---|---|---|---|---|
| 1 April 2021 £ |
Income £ |
Expenditure £ |
Transfer between funds £ |
31 March 2022 £ |
|
| Litle Harbour capital | 380,000 | - | - | - | 380,000 |
| 380,000 | - | - | - | 380,000 | |
| NHS England grants | - | 1,499,001 | (1,499,001) | - | - |
| Litle Bridge House funds | 55,002 | 153,080 | (144,415) | (4,480) | 59,187 |
| Charlton Farm funds | 75,509 | 624,688 | (619,124) | (1,684) | 79,389 |
| Litle Harbour funds | 47,845 | 1,719,819 | (1,700,339) | (28,876) | 38,449 |
| CHSW funds | 43,194 | 72,448 | (44,586) | (18,555) | 52,501 |
| 601,550 | 4,069,036 | (4,007,465) | (53,595) | 609,526 | |
| 1 April 2020 £ |
Income £ |
Expenditure £ |
Transfer between funds £ |
31 March 2021 £ |
|
| Litle Harbour capital | 380,000 | - | - | - | 380,000 |
| 380,000 | - | - | - | 380,000 | |
| NHS England grants | - | 3,390,477 | (3,390,477) | - | - |
| Litle Bridge House funds | 57,763 | 87,662 | (87,852) | (2,571) | 55,002 |
| Charlton Farm funds | 188,296 | 501,314 | (479,524) | (134,577) | 75,509 |
| Litle Harbour funds | 48,867 | 816,662 | (807,023) | (10,661) | 47,845 |
| CHSW funds | 31,418 | 39,708 | (26,912) | (1,020) | 43,194 |
| 706,344 | 4,835,823 | (4,791,788) | (148,829) | 601,550 |
The NHS England grant is the NHS England ‘Children’s Hospice grant’ which was given to sustain and develop the existing high quality hospice care for palliative care children, their siblings and parents.
The Little Bridge House, Charlton Farm, Little Harbour and CHSW funds include donations towards specific projects at each hospice and across the whole charity, including Music Therapy, equipment, rooms and gardens, parties and presents, play equipment and materials, salary and other revenue costs, and funding of mums and dads groups.
Other legacies and donations are restricted to be spent at a specific hospice. 6 restricted legacies were over £50,000, of which a total of £183,242 was donated for Charlton Farm and £1,347,820 was donated for Little Harbour.
Transfers between funds represent the amounts spent on capital assets from revenue funds. Only assets with a continuing restriction are maintained as restricted funds.
Children’s Hospice South West - Annual Report and Financial Statements year ended 31 March 2022
Children’s Hospice South West - Annual Report and Financial Statements year ended 31 March 2022
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Financial statements
Financial statements
19 Unrestricted funds
----- Start of picture text -----
2021 to 2022 group 1 April Income Expenditure Investment Transfer 31 March
2021 £ £ gains between 2022
£ £ funds £ £
- -
Designated capital funds 20,215,272 (1,056,420) 379,213 19,538,065
- - -
Designated care income fund 6,925,613 1,046,702 7,972,315
- -
Total designated funds 27,140,885 (1,056,420) 1,425,915 27,510,380
Unrestricted general funds 14,647,748 14,240,060 (9,818,531) 419,404 (1,372,320) 18,116,361
Total unrestricted funds 41,788,633 14,240,060 (10,874,951) 419,404 53,595 45,626,741
2021 to 2022 charity 1 April Income Expenditure Investment Transfer 31 March
2021 £ £ gains between 2022
£ £ funds £ £
- -
Designated capital funds 20,215,272 (1,056,420) 379,213 19,538,065
- - -
Designated care income fund 6,925,613 1,046,702 7,972,315
- -
Total designated funds 27,140,885 (1,056,420) 1,425,915 27,510,380
Unrestricted general funds 14,632,023 14,128,897 (9,703,343) 419,404 (1,372,320) 18,104,661
Total unrestricted funds 41,772,908 14,128,897 (10,759,763) 419,404 53,595 45,615,041
----- End of picture text -----
| 2020 to 2021 group | 1 April 2020 £ |
Income £ |
Expenditure £ |
Investment gains £ |
Transfer between funds £ |
31 March 2021 £ |
|---|---|---|---|---|---|---|
| Designated capital funds | 21,176,960 | - | (1,167,499) | - | 205,811 | 20,215,272 |
| Designated care income fund | - | - | - | - | 6,925,613 | 6,925,613 |
| Jill Farwell’s memorial fund | 80 | - | (80) | - | - | - |
| Total designated funds | 21,177,040 | - | (1,167,579) | - | 7,131,424 | 27,140,885 |
| Unrestricted general funds | 15,891,995 | 13,950,110 | (9,651,321) | 1,439,559 | (6,982,595) | 14,647,748 |
| Total unrestricted funds | 37,069,035 | 13,950,110 | (10,818,900) | 1,439,559 | 148,829 | 41,788,633 |
| 2020 to 2021 charity | 1 April 2020 £ |
Income £ |
Expenditure £ |
Investment gains £ |
Transfer between funds £ |
31 March 2021 £ |
| Designated capital funds | 21,176,960 | - | (1,167,499) | - | 205,811 | 20,215,272 |
| Designated care income fund | - | - | - | - | 6,925,613 | 6,925,613 |
| Jill Farwell’s memorial fund | 80 | - | (80) | - | - | - |
| Total designated funds | 21,177,040 | - | (1,167,579) | - | 7,131,424 | 27,140,885 |
| Unrestricted general funds | 15,881,861 | 13,899,299 | (9,606,101) | 1,439,559 | (6,982,595) | 14,632,023 |
| Total unrestricted funds | 37,058,901 | 13,899,299 | (10,773,680) | 1,439,559 | 148,829 | 41,772,908 |
The Trustees have established designated capital funds which are equivalent to the net book value of unrestricted tangible and intangible fixed assets used to enable CHSW to carry out its charitable work. Of the net transfers between funds, £53,595 represent the amounts spent on capital assets from restricted funds where the restrictions on the donations for assets have been fulfilled. In the year £325,618 was spent on capital from general unrestricted funds and was transferred to designated capital funds.
The designated care income fund was established in 2021 to identify the funds that will be applied to the CHSW Care Endowment Fund (note 27).
Jill Farwell’s Memorial Fund was established by donations to remember Jill’s death in September 2004. The Trustees, together with Eddie Farwell, decided that the funds will be used to provide ongoing Music Therapy.
Unrestricted general funds have the primary aim of reducing the dependency of the charity on any of its income streams as they develop in the future and to specifically fund essential projects to improve the service of the organisation.
20 Analysis of fund balances between net assets
| As at 31 March 2022 | Unrestricted £ |
Restricted £ |
Endowment £ |
Total £ |
|---|---|---|---|---|
| Fixed assets | 19,538,064 | 380,000 | - | 19,918,064 |
| Investments | 18,934,454 | - | 1,643,228 | 20,577,682 |
| Net current assets | 8,576,882 | 229,526 | - | 8,806,408 |
| Non current liabilites | (1,422,659) | - | - | (1,422,659) |
| 45,626,741 | 609,526 | 1,643,228 | 47,879,495 | |
| As at 31 March 2021 | ||||
| Fixed assets | 20,215,270 | 380,000 | - | 20,595,270 |
| Investments | 13,441,146 | - | 1,605,712 | 15,046,858 |
| Net current assets | 9,716,870 | 221,550 | - | 9,938,420 |
| Non current liabilites | (1,584,653) | - | - | (1,584,653) |
| 41,788,633 | 601,550 | 1,605,712 | 43,995,895 | |
| Free reserves | Group 2022 £ |
Group 2021 £ |
Charity 2022 £ |
Charity 2021 £ |
| Unrestricted general funds | 18,116,361 | 14,647,748 | 18,104,661 | 14,632,023 |
| 18,116,361 | 14,647,748 | 18,104,661 | 14,632,023 | |
| Free reserves target (ceiling) | 14,878,581 | 13,411,160 | 14,878,581 | 13,411,160 |
| Free reserves target (foor) | 12,717,978 | 11,670,998 | 12,717,978 | 11,670,998 |
21 Status of the charitable company
The charity is a company limited by guarantee, having no share capital. The liability of each member, in the event of winding-up, is limited to £1.
Children’s Hospice South West - Annual Report and Financial Statements year ended 31 March 2022
Children’s Hospice South West - Annual Report and Financial Statements year ended 31 March 2022
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Financial statements
Financial statements
22 Operating lease commitments
The total commitment under operating leases for premises is as follows
| Payments falling due | 2022 £ |
2021 £ |
|---|---|---|
| Within 1 year | 749,653 | 697,782 |
| Between 2 and 5 years | 1,053,553 | 1,056,321 |
| In more than 5 years | 80,262 | - |
The total commitment under operating leases for other assets is as follows
| Payments falling due | 2022 £ |
2021 £ |
|---|---|---|
| Within 1 year | 30,459 | 27,433 |
| Between 2 and 5 years | 95,980 | 37,325 |
| In more than 5 years | 1,518 | - |
23 Pension commitments
CHSW employees belonged to two principal pension schemes during the year. The NHS pension scheme for eligible staff is a defined benefit scheme. Non eligible members of staff are offered a defined contribution scheme administered by Scottish Widows.
NHS scheme
Only ex-NHS qualified doctors and nurses are eligible to join the NHS scheme. The NHS scheme is a multi-employer defined benefit pension scheme. As the charity is unable to identify its share of the assets and liabilities of the scheme on a consistent and reliable basis, the scheme is treated by the charity as if it were a defined contribution scheme, in accordance with Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) ‘Retirement benefits’.
Total pension contributions and liabilities
The total pension costs, excluding salary exchange, charged in the year represent the charity’s contributions to all the schemes and amounted to £803,515 (2021:£723,845). The charity’s contributions outstanding at 31 March 2022 were £113,568 (2021:£101,953). The assets and liabilities of both schemes are held separately from those of the charity, in independently administered pension schemes.
24 Capital commitments
At the balance sheet date the Charity had capital commitments totalling £nil (2021:£nil).
25 Indemnities
26 Legacies receivable
As at 31 March 2022 the charity had been notified of a number of residuary legacies, the values of which were uncertain, as the executors were awaiting confirmation of other claims on the estate and may also be in the process of realising assets such as residential property. The estimated total of these legacies could be up to £2.8 million .
None of these legacies have been accrued in the financial statements.
27 Post balance sheet event
On the 27 April 2022 planning permission was granted to build 60 dwellings on the Land at Yatton, this decision can be appealed until 26 June 2022 (note 13a).
On the 14 July 2022 the CHSW Care Endowment Fund was formerly and legally set up.
28a Note to the cash flow statement
Reconciliation of net movement in funds to the net cash flow from operating activities
| Total 2022 £ |
Total 2021 £ |
||
|---|---|---|---|
| Net movement in funds | 3,883,600 | 4,819,860 | |
| Add back: depreciaton and amortsaton charges | 1,056,422 | 1,167,498 | |
| Add back: (losses) on investments | (456,920) | (1,644,615) | |
| Deduct: Investment income and deposit interest | (433,801) | (289,177) | |
| (Proft)/Loss on disposal of fxed assets | (1,200) | 110,650 | |
| (Increase)/decrease in stocks | (3,746) | 9,979 | |
| (Increase) in debtors | (585,709) | (573,435) | |
| Increase in creditors | 874,564 | 1,442,915 | |
| (Decrease) in provisions | (161,944) | - | |
| (Increase) in hope cove investment | (2,603) | (452,341) | |
| Net cash provided by operatng actvites | 4,168,663 | 4,591,334 | |
| 28a Note to the cash fow statement Analysis of changes in net cash resources |
|||
| Total 2022 £ |
Cash fow £ |
Total 2021 £ |
|
| Cash at bank and in hand | 6,482,467 | (875,538) | 5,606,929 |
Legacies
The charity has indemnified the executors of 3 estates in respect of residuary legacies distributed to the charity. The maximum liability under the indemnities at the date the accounts were approved is £27,437 (2021:£27,437).
Solicitors’ unclaimed client funds
Following the passing of relevant legislation, solicitors are now permitted to distribute to charities certain unclaimed client funds, however an indemnity is required from those charities to indefinitely commit to refund any funds that are subsequently claimed. The total of the charity’s indemnities is £104,919 (2021:£104,919).
Thank you for the information I feel very confident that the whole team are working hard to keep supporting each family and at the same time keeping everyone safe.
Children’s Hospice South West - Annual Report and Financial Statements year ended 31 March 2022
Children’s Hospice South West - Annual Report and Financial Statements year ended 31 March 2022
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Financial statements
Accounting policies
29 Prior year statement of financial activities
| Unrestricted £ |
Restricted £ |
Endowment £ |
Total 2021 £ |
|
|---|---|---|---|---|
| Income from | ||||
| Donatons and legacies | 9,223,296 | 3,587,473 | - | 12,810,769 |
| Charitable actvites: Statutory funding | 1,017,154 | 1,199,700 | - | 2,216,854 |
| Trading actvites | 1,867,939 | - | - | 1,867,939 |
| Investments | 311,363 | 48,650 | - | 360,013 |
| Other | 1,530,358 | - | - | 1,530,358 |
| Total income | 13,950,110 | 4,835,823 | - | 18,785,933 |
| Expenditure on | ||||
| Trading actvites | 4,653,991 | - | - | 4,653,991 |
| Total income net of trading expenditure | 9,296,119 | 4,835,823 | - | 14,131,942 |
| Expenditure on | ||||
| Raising funds | 1,750,573 | - | - | 1,750,573 |
| Investment management fees | 71,663 | - | - | 71,663 |
| Net income available for charitable actvites |
7,473,883 | 4,835,823 | - | 12,309,706 |
| Charitable actvites | ||||
| Care of children, young people and families | 4,342,673 | 4,791,788 | - | 9,134,461 |
| Total expenditure | 10,818,900 | 4,791,788 | - | 15,610,688 |
| Net income before gains on investments | 3,131,210 | 44,035 | - | 3,175,245 |
| Net gains on investments | 1,439,559 | - | 205,056 | 1,644,615 |
| Net income | 4,570,769 | 44,035 | 205,056 | 4,819,860 |
| Transfer between funds | 148,829 | (148,829) | - | - |
| Net movement in funds | 4,719,598 | (104,794) | 205,056 | 4,819,860 |
| Reconciliaton of funds | ||||
| Total funds brought forward | 37,069,035 | 706,344 | 1,400,656 | 39,176,035 |
| Total funds carried forward | 41,788,633 | 601,550 | 1,605,712 | 43,995,895 |
Basis of preparation and accounting policies
CHSW is a registered charity with the Charity Commission England and Wales (charity number 1003314) and was incorporated as a private company limited by guarantee (company number 02620879). Its registered office is Little Bridge House, Redlands Road, Fremington, Barnstaple, Devon EX31 2PZ. This is also the registered address of the subsidiary.
The following accounting policies have been applied consistently in dealing with items that are considered material in relation to the financial statements:
(a) Basis of preparation of accounts
(c) Fund accounting
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) (effective 1 January 2015) (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), the Companies Act 2006 and Charities Act 2011.
Restricted funds are those to be used in accordance with specific instructions imposed by donors or which have been raised by the charity for specific purposes. The aim and use of each restricted fund is set out in the notes to the accounts where material.
The Baylis Endowment Fund is to be retained for the benefit of the charity as a capital fund. The income generated from the capital is restricted due to the wishes of the donor. The endowment fund included in these accounts is an expendable endowment.
CHSW meets the definition of a public benefit entity under FRS 102.
Unrestricted funds are available for use at the discretion of the Trustees in furtherance of the general objectives of the charity.
These financial statements consolidate the results of the charity and its wholly owned subsidiary, C H S W Promotions Limited, on a line by line basis. All intergroup transactions are eliminated on consolidation.
The Trustees have designated certain unrestricted funds as capital funds, representing the net book value of the unrestricted fixed assets used to enable CHSW to carry out its charitable work. During the prior year the Trustees designated funds with the intention of setting up the CHSW Care Endowment Fund.
A separate statement of financial activities and income and expenditure account for the charity has not been presented because the charity has taken advantage of the exemption afforded by section 408 of the Companies Act 2006. The charity has taken advantage of the exemptions in FRS 102 from the requirements to present a charity only cash flow statement and certain disclosures about the charity’s financial instruments.
(d) 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 the amount can be measured reliably.
Income from voluntary sources is received by way of donations and gifts and is included in full in the Statement of Financial Activities when receivable.
(b) Going concern
The group has cash resources and no requirement for external funding to fund normal operating activities. The Trustees believe that there are no material uncertainties about the group’s ability to continue in operating existence for the foreseeable future, having reviewed our financial position, reserves levels and future plans. In forming these conclusions, the Trustees have considered the ongoing financial impact of COVID-19. They continue to believe the going concern basis of accounting appropriate in preparing the annual financial statements.
Income from Gift Aid tax reclaims is recognised for all donations made prior to the year end, where valid Gift Aid declarations are held, and allocated to the same fund as the underlying donation.
Donated services and facilities
Properties, investments, and other fixed assets donated to the charity are included as income and recognised as assets at market value at the time that the charity takes control of the item. Donated services and facilities are included as income, if material, at
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Accounting policies
Accounting policies
their estimated value to the charity when received, and under the appropriate expenditure heading depending on the nature of service provided, at the same value and time. Although it is of significant value to the charity, time donated by the charity’s many volunteers and Friends Group members is not recognised in the accounts as it cannot be reliably valued and is specifically exempted by the SORP. Details of the role played by volunteers and the nature of their contribution can be found in the Trustees’ Report.
Stocks of donated goods for resale cannot be measured reliably in a cost-effective manner, due to the high volume of low value items received. Therefore donated goods for resale are not recognised on receipt, but their value is recognised as income when sold.
Legacy income
Legacies are recognised when the charity is entitled to the funds (when there is a valid will and they are notified of the benefactors death), when receipt is probable (indicated by grant of probate) and the charity can reliably estimate the legacy income receivable.
Recognition is therefore dependent upon the type of legacy:
-
Pecuniary legacies are recognised when notification is received and probate has been granted
-
Residuary legacies are recognised when notification is received, probate has been granted and a reliable estimate of the fair value can be made (the executors have compiled draft accounts)
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Discretionary/conditional legacies are not recognised until a distribution has been made or all conditions have been satisfied.
Where legacies have been notified to the charity but the criteria for income recognition have not been met the legacy is treated as a contingent asset and disclosed if material (note 26).
Income received in advance
Income received in advance of an event or provision of other specific service, is deferred until the criteria for income recognition are met.
Interest received
Interest on funds held on deposit is included when receivable.
Investment income
Investment income is credited to income on an accruals basis.
Grants (including Government grants) Grants received for specific purposes are accounted for as restricted funds. Grants that provide core funding or are of a general nature provided by charitable foundations are recorded as donations. The grants detailed in note 4 have been included as income from charitable activities as they relate to the provision of care services. Grants are recognised in full when entitlement is established.
(e) Expenditure
Expenditure is accounted for on an accruals basis and 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 has been classified under the following activity headings:
The costs of raising funds are those incurred in encouraging individuals and organisations to make voluntary contributions and donations to the charity. This includes the costs of the charity’s fundraising offices and supporter groups, the cost of trading and investment management fees
- Charitable expenditure comprises direct expenditure including direct staff costs attributable to its care activities and support costs.
The treatment of VAT is detailed in (h) page 43.
Support costs include central functions and are allocated to activity cost categorised on a basis consistent with the use of resources. This allocation is carried out on a substantive activity basis and does not take account of incidental use.
Governance costs are included within support costs and comprise the costs of running the charity. This includes external audit, any legal advice for the Trustees and all costs of complying with constitutional and statutory requirements such as the costs of Board and Committee meetings.
(f) Operating leases
Rentals applicable to operating leases, where substantially all the risks and rewards of ownership remain with the lessor, are charged in the statement of financial activities over the life of the lease on a straight line basis. They include retail shops, vehicles and photocopiers.
(g) Pension costs
The charity contributed to 1 defined benefit scheme in the year, but also operates a defined contribution pension scheme. Pension costs charged to the statement of financial activities represent the contributions payable by the charity in respect of the accounting period. Both schemes are accounted for as defined contribution schemes. Note 23 provides a detailed explanation.
(h) Taxation
The charity is exempt from Corporation Tax on its charitable activities.
The charity is registered for Value Added Tax. Irrecoverable VAT is allocated to the areas in which it is incurred.
(i) Tangible and intangible fixed assets
Tangible and intangible fixed assets are depreciated and amortised in equal annual instalments, using the straight-line basis, over their estimated useful lives, as follows
| Litle Bridge House, Charlton Farm and Litle Harbour |
50 years |
|---|---|
| Other freehold buildings | 5 to 50 years |
| Leasehold property | Life of lease |
| Medical equipment | 5 to 10 years |
| Furniture and equipment; fxtures and ftngs |
4 to 20 years |
| Garden, play and external equipment | 5 to 10 years |
| Sof furnishings | 4 to 5 years |
| Computer equipment and sofware | 3 to 5 years |
| Motor vehicles | 4 years |
No depreciation is provided on freehold land.
The cost of minor additions, defined as those costing less than £500 each, are expensed in the year in which they are incurred.
(j) Fixed asset investments
Assets held with the intention of retaining them long-term for the continuing benefit of the charity through income and capital appreciation are classified as fixed asset investments. These may include investments listed on a recognised stock exchange (or ones valued by reference to such investments, such as common investment funds, open ended investment companies, and unit trusts), investment land or properties, investments in subsidiary undertakings, and cash held for investment purposes.
Fixed asset investments, other than cash deposits, are stated at market valuation and any gains or losses are dealt with in the statement of financial activities.
Investment in the subsidiary is stated at cost.
Current asset investment
Current asset investments consist of a property left to CHSW in a will. The property was valued by an independent agent at 31 March 2021 and has been recognised at the indicated value. Additional expenses are recognised at cost.
(k) Stock
Stock consists of purchased goods for resale. Purchased goods for resale are valued at the lower of cost and net realisable value, after allowing for obsolete and slow moving stock.
(l) Debtors
Other debtors, legacies receivable and accrued income are recognised at the settlement amount due after any trade discounts. Prepayments are valued at the amount prepaid net of any trade discount.
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Accounting policies
Audit report
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(m) Cash at bank and in hand
where these judgements and estimates are especially significant:
Cash at bank and in hand includes cash in hand and cash held by financial institutions.
Useful economic lives of tangible and intangible assets The annual depreciation and amortisation charges for the tangible and intangible assets are sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are amended when necessary to reflect current estimates and the physical condition of the assets. See notes 11 and 12 for the carrying amount of the tangible and intangible assets and policy (i) for the useful lives for each class of asset.
(n) Creditors
Creditors are recognised when 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.
(o) Financial instruments
The charity only has basic financial instruments that result in the recognition of financial assets and financial liabilities. Financial instruments include cash at bank, trade debtors, legacies receivable, accrued income from financial instruments (comprising dividends and interest due from investments), trade and sundry creditors and accrued expenditure. Financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.
Impairment of debtors
The group makes an estimate of the recovery of trade debtors and other debtors. When assessing the impairment of trade debtors and other debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience.
Provisions
The group has estimated the anticipated costs of dilapidations across its retail operations based on the age of the lease and the fit out costs.
(p) Significant estimates and judgements
Preparation of the financial statements requires management to make significant judgements and estimates. The items in the financial statements
The group has estimated the potential maximum claw-back on its retail grant income based on legal advice received and detailed calculations.
Independent auditor’s report to the members of CHSW
Conclusions relating to going concern
Opinion
We have audited the financial statements of Children’s Hospice South West (‘the charitable company’) and its subsidiary (‘the group’) for the year ended 31 March 2022 which comprise the Consolidated Statement of Financial Activities, Consolidated and Charity Balance Sheet, Consolidated Cash Flow Statement 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 Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ (United Kingdom Generally Accepted Accounting Practice).
In auditing the financial statements, we have concluded that the trustee’s use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company’s or the group’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.
In our opinion the financial statements:
Other information
- Give a true and fair view of the state of the group’s and the charitable company’s affairs as at 31 March 2022 and of the group’s income and expenditure, for the year then ended
The Trustees are responsible for the other information contained within the annual report. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
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Have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice
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Have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the 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 conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the Financial Reporting Council’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
We have nothing to report in this regard.
Thank you all for your professionalism and dedication for the really important care you provide for the families and children you look after.
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Audit report
Audit report
Opinions on other matters prescribed by the Companies Act 2006
In our opinion based on the work undertaken in the course of our audit:
The information given in the Trustees’ report, which includes the directors’ report and the strategic report prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements
The strategic report and the directors’ report included within the Trustees’ report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In light of the knowledge and understanding of the group and charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors’ report included within the Trustees’ report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
Adequate and proper accounting records have not been kept
The financial statements are not in agreement with the accounting records and returns Certain disclosures of Trustees’ remuneration specified by law are not made We have not received all the information and explanations we require for our audit.
Responsibilities of Trustees
As explained more fully in the Trustees’ responsibilities statement set out on page 21, the Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the Trustees are responsible for assessing the 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 charitable company or to cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an 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.
Details of the extent to which the audit was considered capable of detecting irregularities, including fraud and non-compliance with laws and regulations are set out below.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Extent to which the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We identified and assessed the risks of material misstatement of the financial statements from irregularities, whether due to fraud or error, and discussed these between our audit team members. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and appropriate to provide a basis for our opinion.
We obtained an understanding of the legal and regulatory frameworks within which the charitable company and group operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006, the Charities Act 2011 together with the Charities SORP (FRS 102). We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items.
In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the charitable company’s and the group’s ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the charitable company and the group for fraud. The laws and regulations we considered in this context were Care Quality Commission (CQC) Regulations.
Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Trustees and other management and inspection of regulatory and legal correspondence, if any.
We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within the timing of recognition of income and the override of controls by management. Our audit procedures to respond to these risks included enquiries of management and the Investment and Finance Committee about their own identification and assessment of the risks of irregularities, designing audit procedures over income, sample testing on the posting of journals, reviewing accounting estimates for
biases, reviewing regulatory correspondence with the Charity Commission, and reading minutes of meetings of those charged with governance.
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed noncompliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.
Use of our report
This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body for our audit work, for this report, or for the opinions we have formed.
Guy Biggin Senior Statutory Auditor
For and on behalf of Crowe UK LLP Statutory Auditor 4th Floor, St James House, St James Square, Cheltenham GL50 3PR Date: 2 August 2022
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Structure, governance and management
Structure, governance and management
CHSW is a registered charity with the Charity Commission in England and Wales (charity number 1003314) and was incorporated as a private company limited by guarantee (company number 02620879), on 17 June 1991. Legal and company information is set out on page 52 and lists the Directors and Trustees, the SMT and the principal advisors and forms part of this report.
Organisational structure
Principal object of the charity
The charity is constituted as a company limited by guarantee, and, therefore, is governed by a Memorandum and Articles of Association and has no share capital.
The charity was established ‘to promote the relief of illness and suffering in such ways as the Association shall from time to time think fit, and particularly in the South West counties of England and adjacent areas’ and in particular:
The charity has a wholly owned subsidiary, C H S W Promotions Limited. The principal activity of the subsidiary is the sale of promotional and bought in goods in support of CHSW.
- By establishing, maintaining and conducting residential nursing homes for the reception and care of young persons who are suffering from any chronic or terminal illness or from any other physical or mental infirmity, disability or disease and for the reception and care of the members of the family of such persons whether adult or otherwise, and so that any such home may be restricted to patients (and the families of patients) of under a certain age limit or to patients suffering from any particular types of illness, disability, disease or infirmity, and by providing medical or other treatment or attention for any such persons and their families as aforesaid in their own homes
The Directors of this subsidiary throughout the year, unless otherwise stated, are as follows:
Nicola Mason, CHSW Trustee
-
Jessica Patel, CHSW Director of Marketing and Communications
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David Turner, CHSW Trustee
-
Jonathan Webber, CHSW Director of Finance and Retail.
All Directors of CHSW, (excluding the SMT), are also Trustees of the charity and there are no other Trustees. All the Trustees named on page 52 served throughout the year and until the date this report has been signed, unless otherwise stated.
By conducting or promoting or encouraging research into the care and treatment of persons suffering from any such illness, disability, disease or infirmity as aforesaid and particularly into the care and treatment of persons suffering from terminal illness and the care of the families of such persons and by providing for the dissemination of the results of such research
The charity is organised so that the Trustees meet collectively 4 times a year to direct the management of its affairs. Strategy days are also held periodically. The members (the members of the charity include all Trustees’ and 3 other individuals) of the charity may, by ordinary resolution, appoint persons who are willing to act to be Trustees.
By promoting or encouraging or assisting in the teaching or training of Doctors, Nurses, Physiotherapists, Administrators, Social Workers, and other persons engaged in any branch of medicine, surgery, nursing or allied services, and in the teaching or training of students in any branch of medicine, surgery, nursing or allied services By providing or assisting or encouraging the provision of spiritual help and guidance for any persons resident (either as patients or as families) or associated in any way with any such home or homes as aforesaid.
The Child Death Overview Panel (CDOP) reviewed the case of one of our CHSW children who died at home and wanted to recognise the good practice of close and collaborative working between professionals which enabled her and her family to be supported to remain in their choice for end of life care.
In pursuing the principal objectives of the organisation, activities that CHSW provides to the families in the South West are detailed on page 8 to 13.
Assurance Committees
In addition to regular Board meetings, with the attendance of all Trustees and the SMT, delegated authority has been given to Assurance Committees to assist the Board in several functional and risk areas of the organisation. These Assurance Committees are attended by Trustees with relevant skills and experience, meet at least 3 times per year and report directly to the Board. They currently include:
-
Care Assurance Committee
-
Income Generation and Marketing Assurance Committee
-
Investment and Finance Assurance Committee Governance Assurance Committee (incorporating risk and remuneration).
Appointment of Trustees
The Board of Trustees is responsible for confirming the appointment of a new Trustee following a clear recruitment and selection policy and procedure. The term of office is 3 years after which period a Trustee must seek re-appointment by the Board if he or she wishes to continue as a Trustee. There is currently a 3 term maximum on the number of terms of office a Trustee can serve.
CHSW will ensure it maintains and enhances its own accountability and wider public confidence in its work by:
Engaging effectively with the community it serves
-
Responding equitably to the needs of its users
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Endeavouring to ensure a mix of Trustees that reflects the mix of CHSW beneficiaries and its local communities.
New Trustees are offered a programme of induction which includes reading a certain amount of literature, meeting with some of those who lead the organisation, and gaining some first-hand experience of situations in which we work. The programme of induction contains the following elements:
A document pack including:
-
Organisational structure chart
-
Governing documents and governance policies
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Strategic plan
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Latest annual report
-
Latest management accounts
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Risk register
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Annual meeting schedule
Meeting key personnel including the chair of Trustees and individual members of the SMT
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Taking a tour of one of our hospices and meeting with the Head of Care
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Attending a welcome day with other new staff Spending time on a shift, working with the Care Team, pending restrictions
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Attending other key events, fundraising events and a Friends Group conference.
Management
The day-to-day operation of the charity is carried out by SMT, listed on page 52, who have delegated responsibility and are employees of the charity.
Care services throughout the charity are provided under the direction of the Director of Care, Allison Ryder. Fundraising staff work under the direction of the Director of Fundraising, Paul Courtney. The Director of Marketing and Communications, Jessica Patel, oversees marketing and communication issues together with IT services. The finance function is overseen by the Director of Finance and Retail, Jonathan Webber. Jonathan is also Company Secretary and is responsible for retail trading operations.
The Director of HR, Daphne Sands, is also responsible for facilities management and health and safety.
The above members of SMT report to the Chief Executive, Eddie Farwell, who oversees all operational and strategic matters.
SMT remuneration, including that of the Chief Executive, is reviewed annually by the Governance Assurance Committee. Senior management remuneration is established and reviewed periodically based on the Hay Group methodology in respect to job evaluation and also having due regard to CHSW’s duty to ensure best value and after taking advice on pay levels, market conditions and other relevant factors.
Other than allowable business expenses, CHSW makes no payments in addition to the basic salary to the Chief Executive and SMT for undertaking their core role. Any authorised additional hours will be subject to the conditions in line with all staff.
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Structure, governance and management
Structure, governance and management
Employees
CHSW is committed to the principle of equal opportunities in employment and recognises its obligations under the Equality Act 2010. CHSW declares its opposition to any form of less favourable treatment, whether through direct or indirect, associated or perceived discrimination accorded to CHSW staff, or job applicants, on the grounds of their race, nationality or ethnic origin, disability, sex, age, sexual orientation and gender reassignment, marital and civil partnership status, pregnancy and maternity, religion or belief, (otherwise known as ‘protected characteristics’ as defined by the Equality Act 2010), including Human Rights.
CHSW is committed to creating a positive culture of respect for all CHSW staff and to promote positive practice and value the diversity of all individuals and communities.
CHSW embraces and recognises the importance of diversity, and that different people bring different perspectives, ideas, knowledge and culture, and that this difference brings great strength as well as contributing to employee wellbeing and engagement.
Our aim is to create a culture that respects and values each person’s differences, that promotes dignity, equality, diversity and inclusivity, and that encourages individuals to develop and maximise their true potential.
We expect commitment and involvement from all CHSW staff, partners and providers of goods and services in working towards the achievement of our aim. Continued close attention is paid to the health and safety of employees while at work and all employees are provided with appropriate training in compliance with our CHSW Health and Safety Policy.
Employee views are sought through a number of forums including 121s, team meetings, steering groups, staff survey and the Staff Council. CHSW’s strong ‘Speaking Up’ culture is also supported by a team of Freedom to Speak Up Champions from across the organisation which includes a Trustee. There were no concerns raised via the Whistleblowing Policy this year. Information concerning the charity and its activities and performance are shared with employees through several mediums including Internal Communications via email, the Staff Intranet, and Site Meetings. These forms of communication are constantly evolving and the use of video conferencing over Zoom and Teams has become embedded into our new ways of working.
Engaging with our stakeholders
The CHSW Trustees set out to define discrete stakeholder groups and recognises that in many cases they have complementary interests and shared priorities. Stakeholders identified include children and young people living with life-limiting conditions, their families, donors, staff, volunteers, CCGs, local communities, contractors, suppliers, and our Patron.
The Trustees have in place a strategy for regular and effective communication with these stakeholders about the charity’s purposes, values, work and achievements. Examples of this includes marketing strategies and a family engagement programme.
The Trustees communicate how the charity is governed, who they are, and decisions being made through the CHSW website and the Trustee Annual Report. The Trustees ensures that stakeholders have an opportunity to hold the board to account through agreed processes and routes such as Friend’s Group Conferences, Volunteer Appreciations days, Parent Forums, Parent Feedback Questionnaires, Staff Council and regular Staff Surveys.
The Trustees make sure there is suitable consultation with stakeholders about significant changes to the charity’s services or policies.
Memberships
To assist in its decision making and to ensure current and best practice is always followed, the charity is an active participant in the membership of several ‘not for profit’ organisations. These include the following:
Hospice UK Together for Short Lives Fundraising Regulator Charity Retail Association Hospice Lottery Association Gambling Commission The Lotteries Council.
Related parties
CHSW has a trading subsidiary C H S W Promotions Limited which is responsible for the sale of all new goods, including Christmas cards. The relationship between the 2 organisations is set out in a memorandum of understanding.
Energy and carbon reporting
Charity governance code
CHSW is a not-for-profit organisation which aims to follow charity sector best practice. The Charity Governance Code for larger charities was adopted into our new Governance Framework, which was completed in March 2021. The code sets out the principles and recommend practice for good governance and is a tool for continuous improvement towards the highest standards.
In November 2019, CHSW engaged an independent firm of consultants to demonstrate compliance under the Energy Savings and Opportunities Scheme. This piece of work involved assessing the organisations current energy usage including business, transport, and process, and suggesting energy efficient opportunities. This requires compliance every 4 years and is due again in 2023.
In the year ended 31 March 2022 the organisation’s annual energy usage as 1,436,224 kWh (2021:978,022 kWh) which equates to 406,552 CO2e (2021:276,849 CO2e). When assessed against the organisations charitable spend of £8,863,482 this gives an intensity ratio of 1 CO2e:£22 charitable spend.
A working party made up of Trustees from the Risk and Governance sub-committee undertook the Charity Governance Code Self-Assessment in August 2019 and reported back to the full subcommittee in October 2019 with their recommendations for areas for increased focus and improvement. This work was reinforced at the Board Development Day held in January 2020.
The report suggested the top 5 energy efficient opportunities which are currently being considered by the SMT and the Trustees:
Our governance and risk frameworks were reviewed and updated last year. Our focus for this year will include Trustee recruitment and continuing with our stakeholder voice reviews to support the strategic development of our care services.
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1 Rationalise Heating, Ventilation, and Air Conditioning (HVAC) setpoints - heating and cooling
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2 Upgrade lighting to LEDs
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3 Rationalise HVAC timings - match with occupancy
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4 Behaviour change
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5 Upgrade heating systems.
Progress has been limited by COVID-19 and the different ways we have been using our hospices however the LED lighting programme has continued, and we are currently piloting the use of hybrid cars for our Area Retail Managers and considering electric car charging points in hospice car parks.
Children’s Hospice South West - Annual Report and Financial Statements year ended 31 March 2022
Children’s Hospice South West - Annual Report and Financial Statements year ended 31 March 2022
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Reference and administration
Fundraising standards
Committed to the highest standards
| Company number | 02620879 |
|---|---|
| Charity number | 1003314 |
| Trustees | Stephen Hindley CBE, DL David Turner Karen Rogers Nicola Mason Patricia Morris Alan Broughton Roger Knight Elizabeth Childs Kate Martn |
| Secretary | Jonathan Webber |
| Registered ofce | Litle Bridge House, Redlands Road, Fremington, Barnstaple, Devon EX31 2PZ |
| Senior Management Team (SMT) |
Chief Executve (CEO):Eddie Farwell MBE, Hon LLD Director of Care: Allison Ryder Director of Finance and Retail:Jonathan Webber Director of HR:Daphne Sands Director of Fundraising:Paul Courtney Director of Marketng and Communicatons:Jessica Patel |
| Advisors | Principal Bankers:Barclays Bank Plc 3rd Floor, 3 Bedford Street, Exeter EX1 1LX Principal Solicitors:Burges Salmon LLP 1 Glass Wharf, Bristol BS2 0ZX Investment Managers:Aberdeen Standard Capital Limited 1 George Street, Edinburgh EH2 2LL Investment Managers:Sarasin & Partners LLP Juxon House, 100 St Paul’s Churchyard, London EC4M 8BU Independent Auditor:Crowe UK LLP Statutory Auditor 4th Floor, St James House, St James Square, Cheltenham GL50 3PR |
Advisors Principal Bankers: Barclays Bank Plc 3rd Floor, 3 Bedford Street, Exeter EX1 1LX
Principal Solicitors: Burges Salmon LLP 1 Glass Wharf, Bristol BS2 0ZX
Investment Managers: Aberdeen Standard Capital Limited 1 George Street, Edinburgh EH2 2LL
Investment Managers: Sarasin & Partners LLP Juxon House, 100 St Paul’s Churchyard, London EC4M 8BU
Independent Auditor: Crowe UK LLP Statutory Auditor 4th Floor, St James House, St James Square, Cheltenham GL50 3PR
Children’s Hospice South West is committed to ensuring all our fundraising activities are safe, respectful, transparent and accountable. We are registered with the Fundraising Regulator and through consistent training and monitoring, benchmark all of our activities against the Code of Fundraising Practise. Many of our Fundraising Team are individual members of the Chartered Institute of Fundraising, enabling them to keep up to date with best practise and developing industry guidelines.
These high standards of fundraising that we expect of our teams also extend to those acting on behalf of CHSW. Volunteers receive extensive training to ensure they are up to date with regulatory changes and any agencies or commercial participators that represent the CHSW brand must demonstrate their commitment to standards before work commences.
In the year to March 2022, CHSW was also supported by Engage & Connect to undertake door-to-door and private site fundraising for our Raise a smile Lottery. Engage & Connect canvassers have received regular training from the charity and agency throughout the year. We also undertake regular reviews of activity, monitor feedback from quality assurance questionnaires and have begun a programme of mystery shopping to ensure the highest standards of CHSW are reflected by those employed by this Professional Fundraising Organisation.
During the year, there were several Customer Relationship Management (CRM) agreements with companies partnering with us to raise funds. These agreements were reviewed regularly to ensure companies carrying the CHSW logo acted in-line with the standards expected at all times.
While we are committed to these very high standards, there are times when we do receive concerns or complaints. In the last year, 1 person (2021:2) contacted us to raise a concern about our fundraising and marketing activities and we received 2 complaints (2021:6). These were reviewed and resolved in line with the charity’s complaints policies and no further escalation or involvement of external regulators was required.
In addition to ongoing training and updates on COVID-19 safe fundraising practises throughout the last year, CHSW has continued to deliver training to ensure that everyone respects the privacy of supporters (especially those who may be classified as vulnerable). Everyone at CHSW is committed to behaviour and communications that ensure no potential or existing supporter feels under any undue pressure to support our work.
Children’s Hospice South West - Annual Report and Financial Statements year ended 31 March 2022
Children’s Hospice South West - Annual Report and Financial Statements year ended 31 March 2022
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www.chsw.org.uk enquiries@chsw.org.uk
Redlands Road, Fremington, Barnstaple, Devon EX31 2PZ 01271 325 270
Charlton Drive, Wraxall, North Somerset BS48 1PE 01275 866 600
Porthpean Road, Porthpean, St Austell, Cornwall PL26 6AZ 01726 871 800
Please note that no part of this report may be reproduced without the prior consent of Children’s Hospice South West.