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2024-03-31-accounts

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Company Registration No. 02650110 Charity No. 1005165

Derian House Childrens Hospice

Financial Statements

For The Period 1 January 2023 to 31 March 2024

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DERIAN HOUSE CHILDRENS HOSPICE

CONTENTS

Page
Reference and administrative information 1
Welcome message: Karen Swindley, Chair of board of trustees 2
Our care in figures 3
Case study: Tommy’s Story 4
Trustees’ report 5
Independent auditor’s report 15
Consolidated statement of financial activities 18
Consolidated and charity balance sheets 20
Consolidated and charity cashflow statements 21
Accounting Policies 22
Notes to the financial statements 25

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DERIAN HOUSE CHILDRENS HOSPICE REFERENCE AND ADMINISTRATIVE INFORMATION

Registered Office & Principal address

Registered Office & Principal address Derian House Chancery Road Astley Village Chorley PR7 1DH Company Registration Number 02650110 (England and Wales) Charity Commission Number 1005165 Tax Exemption Number XN81887 GAYE Number T607/01 Trustees Karen Swindley Helen Rotheram ^ Christopher Monk ^ Andrew Chaterjee ^ (appointed 5 April 2023) Arshad Rafiq ^ (appointed 5 April 2023) Davina Hanlon (appointed 5 April 2023) Rick Bolton (appointed 5 April 2023) Helen Curtis (appointed 6 November 2023) Claire Granato (appointed 17 May 2024) Matthew Cowburn (resigned 4 March 2024) Jane Robinson (resigned 28 September 2023) Stephen Game (resigned 31 May 2023) Lisa Kauffmann (resigned 17 April 2024) Director of Derian House Children's Hospice Shops Limited ^Member of the Finance and Income sub committee

Senior Management Team: Chief Executive Officer Karen Edwards, OBE Chief Nurse Catherine Randall (appointed 1 September 2023) Director of Clinical Services Bridget Thomas (appointed 20 May 2024) Director of Clinical Services Lynn Grayson (resigned 30 November 2023) Director of Human Resources Kim Owen Director of Income Caroline Taylor Head of Finance Colin Taylor (resigned 11 June 2024) Head of Facilities and Infrastructure John Boe (appointed 20 November 2023) Head of Facilities and Infrastructure Luke Bateson (resigned 31 December 2023) Head of Governance and Compliance Anthony Mohammed (appointed 11 December 2023) Head of Governance and Compliance Vanessa Spinks (resigned 7 May 2023)

Professional Advisors: Bankers Virgin Money, 44 Fishergate, Preston PR1 8BH Auditors MHA, 9 Winckley Square, Preston PR1 3HP Investment Managers Brewin Dolphin Ltd, 1 The Avenue, Spinningfields, Manchester M3 3AP Veritas Investment Management LLP, 90 Long Acre, London WC2E 9RA Solicitors Napthens, 7 Winckley Square, Preston PR1 3JD Visiting Medical Officers Dr Qamar Ahmed, Croston Village Surgery, Croston PR26 9HJ Dr Elizabeth Craghill, Floor 2, 9 Portland Street, Manchester M1 3BE Dr Rebecca Boyes Rutlands, Sandy Lane, Mawdesley L40 2QB Dr Suzanne J Heald, Library House Surgery, Chorley PR7 2AD

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DERIAN HOUSE CHILDRENS HOSPICE

WELCOME MESSAGE

Introduction

Welcome to our financial report in which we'll show how we have helped children and young people from across the North West during the period 1 January 2023 to 31 March 2024.

We are lucky to have the most wonderfully loyal and dedicated supporters here at Derian House, who have enabled the team to provide a range of outstanding services and care to our growing number of families. The North West of England continues to have a higher number of children and young compared with other regions across the UK, with life limiting and life shortening conditions, and research continues to show that these numbers are increasing. This coupled with a challenging landscape for other healthcare providers and funding crisis within the ICBs and the NHS, only go to further demonstrate, how critical the hospice is for families across GM and L&SC.

At Derian House Children’s Hospice, it is out mission to reach as many of these children and young people as possible, ensuring that we remove the barriers that may lay in their way, as we provide outstanding palliative, respite and end of life care.

We offer a complete family approach, providing a range of post bereavements services for as long as it is needed. I am happy to report that it has been a busy year at the hospice, caring for a total of 411 babies, children and young people and their families.

This year has been a very special year for Derian House as we have celebrated our 30th anniversary. Ian Haydock lost his 19 old brother Derek after his battle with Duchenne Muscular Dystrophy in 1969, after which Ian and his family set up a fundraising group with the goal of building a children’s hospice in Lancashire. It was a time when there were very few hospices in the country for children. They were successful is achieving their goal and Derian House (Derian being a combination of the names Derek and Ian) was born from there. Supporters, press and schoolchildren gathered to watch local celebrities dig the first turf at a ceremony in 1992. In 1993, Derian House Children’s Hospice welcomed its first child through the door and the rest is a very special history, just like Derian itself, special.

Not only have we been celebrating our anniversary this year, but also we have welcomed a new Chief Executive. Karen has proved to be an outstanding leader and a real driving force in moving us forward and ensuring that we have another successful 30 years in the pipeline. We have also welcomed a number of new members to the senior management team and the trustee board who again will support us in continuing to provide care and support to more than 400 babies, children, young people and their families from across the North West.

I would also like to take this opportunity to pay tribute to all the staff and volunteers at Derian House, who continue to support the children, young people and families that we are proud to serve.

In 2024 and the years to come we will deliver against an ambitious strategic plan, improving our services, creating opportunities for families to really be involved in key decision that affect them, and upgrading our facilities to ensure that we remain fit for purpose and future proof.

Together we are making a difference and making sure that every child matters.

Thankyou

b Swindley

…………………………………………..

Karen Swindley

Chair of the Board of Trustees

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OUR CARE IN FIGURES

This year we cared for 411 babies, children and young people.

We provided 2,035 nights of overnight care, giving them a chance to have fun while their families rested and recharged.

We were there for 86 families to support when they needed us most, with end of life care at the hospice and at home.

We looked after 74 neonatal babies.

We sent 144 families sent on a free week’s holiday to our lodges where they made happy memories.

Families enjoyed 168 cinema sessions at Derian at the Movies – our in-house cinema.

A total of 45 people received counselling sessions to help them work through their grief and come to terms with difficult circumstances.

Children and their families enjoyed 71 splash sessions in our hydrotherapy pool.

We ran 11 different support groups.

We cared for 136 siblings, with support groups and fun days out.

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CASE STUDY: Tommy’s Story

By Dan, Tommy’s Dad

Our precious son Tommy lived for four years, four months and 27 days.

During that time he brought more joy and sunshine into our lives than we could have ever hoped for.

Tommy was born with Down’s Syndrome. We hadn’t had the tests – we didn’t care. I remember my first thought was “he’ll just be more cuddly.” And he was. Everyone who met him fell in love with him.

It was in September last year when we first noticed something wasn’t right. We were on holiday in France and Tommy was much sleepier than usual, but we put it down to the heat.

When we got home Tommy developed a rash and so we took him to the doctor. They sent us straight to hospital and it was there that they told us he had leukaemia.

By December we’d been given the news that Tommy wasn’t going to make it and we were determined to make our last Christmas together perfect.

The next few months were spent making as many memories as we could, and Derian House helped us.

Tommy enjoyed swimming in the hydrotherapy pool, relaxing in the sensory room and even doing some baking.

When we were at Derian they looked after us all and fed us three times a day. It took the pressure off and allowed us to just spend time together making happy memories.

Tommy passed away peacefully at Derian House on 23 March 2024, with me and his mum lying by his side.

I carried him to the Sunflower Room, which is a special cold bedroom they have where children can lay at rest.

Derian staff decorated the room with all his teddies and put cartoons on the TV for him.

Over the next days we got to make hand and footprints which we now cherish, and family got to visit to say their goodbyes.

Derian House continues to support us now, even after Tommy has gone. I’ve started going to the bereaved dads’ group, which is a great group of guys who all just get it.

We know the staff at Derian will be there for us whenever we need them.

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TRUSTEES’ REPORT

The Board of Trustees, who are also directors of the charity for the purposes of the Companies Act, submit their annual report and the audited financial statements for the period ended 31 March 2024, which are also prepared to meet the requirements for a directors’ report and accounts for Companies Act purposes.

The financial statements have been prepared in accordance with the accounting policies set out in notes to the financial statements and comply with the charity’s governing document, the Charities Act 2011 and 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 published in October 2019.

Structure, Governance and Management

The charity is a company limited by guarantee. It is governed by a Memorandum and Articles of Association last updated on 9th January 2018 and is excused from the requirement to use the word 'limited' as part of its name.

Trustees are elected in accordance with the Memorandum of Articles and meet four to six times per year. A panel comprising existing Trustees selects members of the Trustee Board, who each stand for re-election every 3 years in accordance with the Articles of Association, generally subject to a maximum of 9 years unless otherwise agreed by the Board of Trustees. Trustees are selected in general for their proven expertise and experience in professional, business and activity areas relevant to the charity. On joining the Board, the Trustees are given what is considered an appropriate level of training and undergo annual performance reviews.

Board Committees

The Board of Trustees also oversee operations of the Hospice through a set of Board Subcommittees:

Executive Management

The day to day running of Derian House and the exercise of executive responsibilities are carried out by the Chief Executive Officer who attends meetings of the Board along with other Senior staff. Senior staff also attend and contribute to the Board Sub-committees.

Objectives and Activities for Public Benefit

Derian House was established to provide care to children and young people who have a life-threatening or life limiting condition, and to support the families of such children and young people through the provision of a hospice and related support services.

The Board of Trustees refer to the Charity Commission's general guidance on public benefit when reviewing the charity's aim and objectives and in planning future activities. In particular, the Board consider how planned activities will contribute to the aims and objectives they have set.

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TRUSTEES’ REPORT (continued)

Derian House provides care and support for babies, children, young people and young adults from 0-26 years (and transitional services up to the age of 28) in a purpose built hospice with separate children's (The House) and young adults (The Lodge) accommodation and age appropriate facilities. Care and support is provided to the whole family through the provision of:

Future Plans

Derian House is at an exciting time in its journey to be a centre of excellence in the North West for children's palliative and end of life care. The appointment of a new CEO, additional senior managers and additional trustees has enabled the charity to re-evaluate its strategic plan and set a path for continued growth throughout 2025 and beyond. Central to this is the voice of children, young people and their families, and our wider stakeholder network, which is why we have chosen to invest in our engagement team. Ensuring sufficient reserve levels are maintained is key to being able to plan accordingly and ensure sustainability for our most vulnerable and complex families.

STRATEGIC REPORT

Care Services

Situated in the heart of Lancashire Derian House provides care across Lancashire, South Cumbria and large parts of Greater Manchester. We are renowned throughout the region as being at the forefront of children's and young peoples’ palliative and end of life care. Our holistic approach ensures we offer a range of services meeting the diverse range of needs to those who use our services and to their families.

We provide 24-hour care to Babies, Children and Young People (BCYP) from birth to their 26th birthday (0-25). Our services are provided free of charge to those who meet our criteria, with the majority of our income coming from the generosity of the communities we serve.

Families who have a BCYP with a life threatening or limiting condition can choose from a range of care and support services to meet their individual needs, with care available either in their home or at Derian House.

Our emphasis is, and always will be, on giving every support we can to children, young people and their families. In a year where the hospice celebrated its 30th birthday it is an opportunity to reflect on how the provision of hospice care has changed, but at the same time maintained the individualised needs of the child, young person and their family central to all services delivered. There has continued to be growth and development in all areas of hospice services as we continue with our aim to be recognised as a centre of excellence for the provision of palliative and end of life care for children and young people. Our aim and priority remains to deliver the highest standards of care possible and we are proud to have maintained a CQC rating of Outstanding.

Innovations in practice and service development have been recognised as examples of good practice both regionally and nationally. The work of the Advanced Clinical Practitioners in providing hospital in-reach services has been promoted nationally as a NHSE exemplar project and presented at national conferences and meetings. Other organisations are now implementing similar models of working to promote early referral to hospice services, prevention of hospital admissions and earlier discharge home. The team has supported children with complex symptom management at the end of life and of particular note is the excellent teamwork to support the withdrawal of mechanical ventilatory support for a child whose family had challenged the medical decision through the legal system. It was a challenging time for all involved but the child was able to die peacefully and with dignity surrounded by her family and with members of her faith community around her in line with specific religious beliefs that would not have been possible in hospital. Because of this care, Derian House teams now work more closely with the children's hospital concerned and have seen an increase in referrals for care and greater collaborative working across a range of specialities.

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TRUSTEES’ REPORT (continued)

We provide CQC regulated services for the following bands:

Hospice Update

2023/24 was a challenging but hugely successful year. We cared for over 400 Babies, Children and Young People (BCYP) and their families at Derian House and in the community and despite a challenging fundraising environment, we have continued to develop and improve all our services.

Catherine Randall joined the team as Clinical Director/Chief Nurse in September 2023 with a wealth of experience including working as the Head of Commissioning for Children Services in Lancashire and also as a former Chief Nurse in Manchester and Associate Director for Safeguarding for NHS England.

A new Head of Quality, Governance & Compliance joined us in December, and brings a wealth of healthcare quality and governance expertise gained in acute, maternity, mental health and private healthcare settings.

In January 2024 we moved all our care records from the electronic patient records system EMIS across to Care Database; a move which has been hugely beneficial for all our staff and BCYPs. During the rest of 2024 we will roll-out the system to both our End of Life and Community colleagues to aid our integrated reporting functionality and business performance intelligence for continuous improvement and commissioner reporting.

There are a number of factors, which can affect the quality of the service Derian House delivers. Our quality strategy looks at a number of sources to provide safe and effective person-centered care. It takes into account a number of influencing factors:

Say My Child’s Name

More than eight out of 10 parents who have suffered the loss of a child say they feel sad that people don’t speak about their son or daughter, according to research carried out by Derian House. This year, we undertook the largest research project of its kind and spoke to more than 70 bereaved families whose loss spanned 20 years.

The findings were stark – with many people saying they had lost friends and experienced people avoiding them in social situations because they didn’t know what to say. Families said they desperately want to talk about their child, and that people shouldn’t feel worried about saying the wrong thing as nothing could be as bad as just avoiding the subject. We used the research to launch a campaign, “Say my Child’s Name,” which spread the message far and wide, with our video being watched more than 1 million times on Facebook. We also used the families’ own words to create a practical guide for people on what to say and what not to say.

One parent shared, “We want you to bring up our child, we love speaking about them. You won’t remind us that they’re gone, we’re always thinking about them anyway.”

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TRUSTEES’ REPORT (continued)

During the year we have developed a new innovative Care Transformation programme which aligns with our new strategic plan. Annual plans have also been developed to deliver measurable outcomes against KPIs.

In addition, a key element of services going forward is the addition of the Family Engagement Team, an independent team tasked with ensuring that families are fully involved in all aspects of the decisions made about their care and services. The team have developed the following strategic plan for delivery through 2024-2027:

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TRUSTEES’ REPORT (continued)

The whole team should be proud of their achievements and the recognition received over the last year as none of this would have been possible without their continued commitment, dedication and hard work. There will be challenging times ahead but it is also a period of opportunity to continue to develop services further to ensure that all children, young people and families receive the same high standards of palliative and end of life care and support wherever they are cared for.

Income (Fundraising, Communication & Marketing)

2023/24 was a successful 15 months for fundraising and marketing at Derian House Children’s Hospice (we extended our financial year to March this year).

A strong performance throughout the period in all areas of fundraising meant the year ended ahead of budget, with fundraising activity breaking through the £3million barrier for the first time.

June 2023 also saw a record-breaking monthly performance, with fundraising activity exceeding £300,000 in one month for the first time.

Corporate donations performed very well, bringing in £549,488 - £178,488 ahead of budget. General donations and third-party events also surpassed expectations.

Legacies performed below budget, and a decision was made to seek to address this with a marketing campaign in 2024/25.

The Derian House Lottery performed well, bringing in £793,159, despite coming in slightly below budget. A decision was made to bring our lottery operations in-house in 2024 in order to gain more control and increase profits.

An increased focus on collecting Gift Aid paid off, with new processes in place to maximise this income stream.

This year presented a background of uncertainty with a cost of living crisis, but a detrimental effect on donations was not seen.

In 2023 we celebrated the hospice’s 30[th] anniversary and enjoyed a year of celebrations, including producing 30 stories for 30 years, looking back at the people instrumental to Derian’s rich history over that past three decades.

We began filming for The Little Things, a documentary about Derian House told by bereaved dad Paul Woodward, and backed by BAFTA-award winner Steve Pemberton as Executive Producer.

A campaign, Say my Child’s Name, aimed at helping to give bereaved parents a voice, attracted press coverage and attention from across the sector, reaching more than one million people over social media, giving Derian House a reputational boost as the North West charity of choice.

A fundraising challenge completed by seven-year-old Oscar Burrow from Lancaster attracted major national media interest and raised £40,000 for the charity. Oscar pledged to climb 12 mountains to the height of Mount Everest this year. News of his epic adventure even attracted the attention of the royal household, with Oscar meeting Prince William and Princess Catherine, and receiving a Prime Minister’s Point of Light Award.

Our social media continued to grow, reaching 23,000 on Facebook, solidifying our status as fastest-growing charity of our size on the platform.

Two successful direct mail campaigns telling the stories of our children brought in more than £101,794 and helped us to reach hundreds of new donors and to convert one-off donors to regular givers.

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TRUSTEES’ REPORT (continued)

A continued focus on our donor journey meant we could thank our donors in a more individual way, to build strong relationships.

The determination, resilience and creativity of our staff and volunteers meant we have been able to deliver an impressive performance in 2023/4. A strong relationship between fundraising, marketing and communications has led to an effective and aligned team.

Financial uncertainty prevails in 2024 in regards to statutory funding and the financial climate in general, but an appetite for growth and a desire to manage risk and increase organisational knowledge means we are forwardfacing and optimistic.

Ethical Fundraising

Derian House Children's Hospice undertakes fundraising through various methods including organised events, individual giving, corporate and community partnerships, legacy giving, trusts and grants, direct mail campaigns, text to donate, a raffle and a weekly lottery.

All activity is compliant with the Fundraising Regulator, Code of Fundraising Practice, Gambling Commission, and other associated regulators. The charity has a strong reputation and strives for the highest possible standards of ethical conduct. It makes a promise in its income generation policy to ensure that all fundraising activities are legal, open, honest, fair, responsible and respectful.

It is the charity's policy not to engage in street fundraising commonly known as “chugging" and carries out all of its own fundraising apart from lottery membership, some of which is carried out by a third party.

The companies concerned, The Fundraising Partnership (face-to-face canvassing) and OTS (telephone canvassing) have excellent reputations and the charity is in regular contact with them to ensure they are representing Derian House effectively. We monitor and record the number of complaints received – none have been made this year.

Volunteers

We have had continued success in recruiting volunteers across all areas of Derian House, including retail, reception, catering and gardens. We had 63 new volunteers who joined us across the organisation from Jan 23 to the end of March 24 increasing our army of supporters giving their time freely to over 300.

At Derian House, volunteers are at the heart of our teams and services, contributing in a variety of vital roles. From assisting with housekeeping, catering and gardening to welcoming families and visitors at reception, their support is invaluable. Many help with administrative tasks, ensuring smooth day-to-day operations, while others play a key role in our retail units by sorting donations and assisting with shop floor sales. Our events are brought to life by our dedicated group of helpers who take on tasks such as car park marshalling and collecting donations etc. Additionally, volunteers provide essential play services, including Sibling and Play Support, and Pet Therapy, creating engaging, fun, and supportive activities for children and their families. Their dedication helps us create a warm, welcoming environment for all.

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TRUSTEES’ REPORT (continued)

Strategic Aims

Our overarching aim is to continue to provide outstanding care to children and young people with life limiting and life threatening conditions. We believe that we have a solid foundation from which to innovate and respond to opportunities and challenges, having the following strategic plan in place, which, was developed with the whole workforce:

FINANCIAL REVIEW

Review of the period and period end position

Derian House Children’s Hospice Shops Limited

This company is a wholly owned subsidiary of Derian House Children's Hospice and carries out trading activities on behalf of the charity selling donated goods and bought in goods such as cards and giftware. Five (2022:six) outlets on short term leases and one owned outlet was rented out, but no profits were gifted to the Charity in both 2023 and 2022. During the year a full strategic review took place and a new strategy developed. A reduction in staffing took place and a new business model implemented. The year has ended in a much healthier position than originally planned. We expect the shops to continue to perform well and to increase the portfolio.

Investments

As of 31 March 2024, Derian House held £17.19 m in its long term investment portfolio (2022 £15.17m). Investment income in the 15 month year 2023/24 was £357,615 compared with £225,519 in 2022.

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TRUSTEES’ REPORT (continued)

Investment and Reserves Policy

As a consequence of sound financial management and fiscal prudence, Derian House has accumulated Reserves. In considering how best to manage these Reserves the Trustees have taken the following into consideration:

The Trustees have decided it is prudent to designate a level of free Reserves equivalent to a maximum of 24 months annual running costs to ensure the continuity of services and long-term care to our children, young people and families, as well as staff members in the event of a major shortfall in income such as a global pandemic. The majority of these Reserves are invested and are viewed as an asset, and a key part of the charities financial sustainability strategy.

Based on the 2024/25 budget 24 months annual running costs equates to approximately £14m. At 31st March 2024 the free reserves were £18.7m. Therefore 24 months running costs are currently adequately covered. The main objectives for the investment of the reserves are:

In addition, the charity is developing plans for capital investment across the hospice site, to enable it to deliver against its strategic plan. The remaining reserves will require designating for this purpose.

The time horizon for the investment portfolio is long term (i.e. in excess of ten years) to support the ongoing viability of Derian House, although the assets in the portfolio are not permanent endowment and both capital and income can be distributed from the portfolio at any time in the furtherance of Derian House. Holdings in the portfolio should therefore be realisable at relatively short notice under normal market conditions.

To protect real value of the assets in the portfolio and generate a reasonable income yield from the portfolio, the long term real return target for the portfolio has been set at 3.5% per annum after RPI inflation or 6.5% in nominal terms assuming RPI inflation averages 3% per annum in line with the trend over the past 30 years. This target is net of management fees. The ARC Balanced Asset Charity benchmark will be used by Trustees to compare performance of both.

A reasonable level of capital volatility within the investment portfolios is considered by the Trustees to be acceptable given the investment portfolios' long term time horizon and real return objectives. The portfolios should, nevertheless, be well diversified across asset classes and individual investments.

The Trustees wish to invest in a socially responsible manner and the investment manager is expected to take into account environmental, social and governance issues in their investment analysis and decision-making process and engage with company management when appropriate.

Diversification within the portfolios should be such as to limit the maximum downside risk in the portfolio in any one year period in normal market conditions (98% of the time) to 15-20%, which is generally accepted as a medium risk level.

The Trustees review this policy annually in light of changes to the Charity's economic and operating environment.

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TRUSTEES’ REPORT (continued)

Principal Risks and Uncertainties

Delivery of the services provided by the Charity is delegated to the CEO and the Trustees ensure that the delivery is in accordance with the Charity's aims and objectives by a number of internal controls, which also operate to provide reasonable assurance against material misstatement or loss. The procedures include:

Trustees’ Responsibilities Statement

The Board of trustees (who are also directors of the charity for the purposes of company law) are responsible for overseeing the preparation of the Trustees’ Annual Report (including the Strategic Report) and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and for their approval.

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 of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the trustees are required to:

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TRUSTEES’ REPORT (continued)

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

In so far as the trustees are aware:

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

Auditor

Following the merger of MHA Moore and Smalley with MHA, the company's independent auditor has now become MHA. A resolution proposing that MHA be re-appointed as auditor of the charity will be put to the Annual General Meeting.

December 18, 2024

This report which incorporates the Strategic Report was approved by the Board of Trustees on …………………...

b Swindley

…………………………………………..

Karen Swindley

Chair of the Board of Trustees

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INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS

Opinion

We have audited the financial statements of Derian House Childrens Hospice (the ‘parent charitable company’) and its subsidiaries (the ‘group’) for the year ended 31 March 2024, which comprise Group Statement of Financial Activities, Company Statement of Financial Activities, Group Balance Sheet, Company Balance Sheet, Group 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 FRS 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

The other information comprises the information included in the trustees’ annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

15

Docusign Envelope ID: 2A54F9C6-28B3-4377-9DBB-051D33A08145

DERIAN HOUSE CHILDRENS HOSPICE

INDEPENDENT AUDITOR’S REPORT (continued)

Opinion on other matters prescribed by the Companies Act 2006

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

In the light of our knowledge and understanding of the group and parent charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report and the directors’ report.

Matters on which we are required to report by exception

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:

Respective responsibilities of the trustees

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

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

Auditor responsibilities for the audit of the financial statements

We have been appointed auditor under the Companies Act 2006 and report in accordance with this Act.

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.

16

Docusign Envelope ID: 2A54F9C6-28B3-4377-9DBB-051D33A08145

DERIAN HOUSE CHILDRENS HOSPICE

INDEPENDENT AUDITOR’S REPORT (continued)

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud is detailed below:

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

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

Use of report

This report is made solely to the charitable company’s members, as a body, in accordance with the 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.

Nicola Mason MA(Cantab) ACA DChA

Senior Statutory Auditor For and on behalf of MHA, Statutory Auditor Preston, United Kingdom

December 18, 2024

……………………………………

MHA is the trading name of MacIntyre Hudson LLP, a limited liability partnership in England and Wales (registered number OC312313)

17

Docusign Envelope ID: 2A54F9C6-28B3-4377-9DBB-051D33A08145

DERIAN HOUSE CHILDRENS HOSPICE

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITES

(INCLUDING INCOME & EXPENDITURE ACCOUNT)

FOR THE PERIOD ENDED 31 MARCH 2024

Unrestricted
Funds
2024
Note
£
Income from:
Donations, legacies and grants
1
2,650,971
Charitable activities:
2
156,141
Other trading activities
3
1,875,238
Investment income
4
357,615
Total income
5,039,965
Expenditure on:
Raising voluntary funds
5
933,268
Commercial trading activities
6
939,899
Investment management costs
140,757
Charitable activities
7
3,396,135
Total expenditure
5,410,059
Net income/(expenditure)
before other gains and losses
9
(370,094)
Gain/(loss) on investments
13
2,165,733
Net income/(expenditure)
1,795,639
Transfers between funds
18
-
Net movement in funds
1,795,639
Total funds b/fwd
18
21,637,905
Total funds c/fwd
18
23,433,544		 Restricted
Period ended
Year ended
Funds
31 March
31 December
2024
2024
2022
£
£
£
2,933,153
5,584,124
3,920,268
-
156,141
237,911
-
1,875,238
1,288,836
-
357,615
225,519
2,933,153
7,973,118
5,672,534
-
933,268
904,006
-
939,899
854,247
-
140,757
110,227
2,911,228
6,307,363
4,467,012
2,911,228
8,321,287
6,335,492
21,925
(348,169)
(662,958)
-
2,165,733
(1,954,366)
21,925
1,817,564
(2,617,324)
-
-
-
21,925
1,817,564
(2,617,324)
28,075
21,665,980
24,283,304
50,000
23,483,544
21,665,980		 Restricted
Period ended
Year ended
Funds
31 March
31 December
2024
2024
2022
£
£
£
2,933,153
5,584,124
3,920,268
-
156,141
237,911
-
1,875,238
1,288,836
-
357,615
225,519
2,933,153
7,973,118
5,672,534
-
933,268
904,006
-
939,899
854,247
-
140,757
110,227
2,911,228
6,307,363
4,467,012
2,911,228
8,321,287
6,335,492
21,925
(348,169)
(662,958)
-
2,165,733
(1,954,366)
21,925
1,817,564
(2,617,324)
-
-
-
21,925
1,817,564
(2,617,324)
28,075
21,665,980
24,283,304
50,000
23,483,544
21,665,980
5,672,534
904,006
854,247
110,227
4,467,012
6,335,492
(662,958)
(1,954,366)
(2,617,324)
-
(2,617,324)
24,283,304
21,665,980

All of the above results are derived from continuing activities. All gains and losses recognised in the year are included above. The surplus for the year for Companies Act purposes comprises the net incoming resources for the year net of unrealised profits and losses on investments and was £76,746 (2022: £618,784 deficit).

18

Docusign Envelope ID: 2A54F9C6-28B3-4377-9DBB-051D33A08145

DERIAN HOUSE CHILDRENS HOSPICE

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITES

(INCLUDING INCOME & EXPENDITURE ACCOUNT)

FOR THE YEAR ENDED 31 DECEMBER 2022

Unrestricted
Funds
2022
Note
£
Income from:
Donations, legacies and grants
1
2,404,828
Charitable activities:
2
37,983
Other trading activities
3
1,288,836
Investment income
4
225,519
Total income
3,957,166
Expenditure on:
Raising voluntary funds
5
904,006
Commercial trading activities
6
854,247
Investment management costs
110,227
Charitable activities
7
2,778,708
Total expenditure
4,647,189
Net income/(expenditure)
before other gains and losses
9
(690,023)
Gain/(loss) on investments
13
(1,954,366)
Net income/(expenditure)
(2,644,389)
Transfers between funds
18
-
Net movement in funds
(2,644,389)
Total funds b/fwd
18
24,282,294
Total funds c/fwd
18
21,637,905		 Restricted
Funds
2022
£
1,515,440
199,928
-
-
1,715,368
-
-
-
1,688,303
1,688,303
27,065
-
27,065
-
27,065
1,010
28,075		 Total
2022
£
3,920,268
237,911
1,288,836
225,519
5,672,534
904,006
854,247
110,227
4,467,012
6,335,492
(662,958)
(1,954,366)
(2,617,324)
-
(2,617,324)
24,283,304
21,665,980		 Total
2021
£
3,087,023
562,863
856,039
192,203
4,698,128
851,371
668,310
112,455
4,092,795
5,724,931
(1,026,803)
2,357,650
1,330,847
-
1,330,847
22,952,457
24,283,304

All of the above results are derived from continuing activities. All gains and losses recognised in the year are included above. The deficit for the year for Companies Act purposes comprises the net incoming resources for the year net of unrealised profits and losses on investments and was £618,784 (2021: £116,684).

19

Docusign Envelope ID: 2A54F9C6-28B3-4377-9DBB-051D33A08145

DERIAN HOUSE CHILDRENS HOSPICE

CONSOLIDATED AND CHARITY BALANCE SHEET

AS AT 31 MARCH 2024

Group Group Charity Charity
2024 2022 2024 2022
Note £ £ £ £
Fixed assets
Tangible assets 12 5,334,879 5,366,769 5,209,879 5,214,731
Investments 13 17,195,623 15,168,702 17,195,623 15,168,702
Investment in subsidiary 14 - - 1,000 1,000
22,530,502 20,535,471 22,406,502 20,384,433
Current assets
Stock 15 27,438 27,438 - -
Debtors 16 326,330 516,803 928,454 1,173,636
Cash at bank and in hand 1,030,834 1,446,028 969,223 1,273,981
1,384,602 1,990,269 1,897,677 2,447,617
Creditors
falling due within one year 17 (431,560) (859,760) (384,913) (806,582)
Net current assets 953,042 1,330,509 1,512,764 1,641,035
Net assets 18 23,483,544 21,665,980 23,919,266 22,025,468
Unrestricted
General funds 20,501,533 19,513,103 20,501,533 19,513,103
Revaluation reserve 3,367,733 2,484,290 3,367,733 2,484,290
Non charitable trading funds (467,813) (391,579) - -
Non charitable Revaluation reserve 32,091 32,091 - -
Restricted
General funds 50,000 28,075 50,000 28,075
Total funds 18 23,483,544 21,665,980 23,919,266 22,025,468

As permitted by Sec 408 Companies Act 2006, the Charity has not presented its own Statement of Financial Activities and related notes as it prepares Group Accounts. The individual Charity's surplus for the period was £1,893,798 (2022: £2,443,276 deficit). The surplus for the year for Companies Act purposes comprises the net incoming resources for the year net of unrealised profits and losses on investments and was £152,980 (2022: £444,736 deficit).

December 18, 2024

These accounts were approved by the Board on ………………………. and signed on its behalf:

b Swindley

Kies V-—

………………………………………….. …………………………………………..

Karen Swindley

Helen Rotheram

Chair of the Board of Trustees

Trustee

Company Registration Number: 02650110 (England and Wales)

20

Docusign Envelope ID: 2A54F9C6-28B3-4377-9DBB-051D33A08145

DERIAN HOUSE CHILDRENS HOSPICE

CONSOLIDATED AND CHARITY CASHFLOW STATEMENT

FOR THE PERIOD ENDED 31 MARCH 2024

Cash flows from
operating activities
Net income/(expenditure)
Adjustments for:
Investment income
Loss on disposal of fixed assets
Depreciation
Changes in:
(Increase)/Decrease in stock
(Increase)/Decrease in debtors
Increase/(Decrease) in creditors
Cash provided by / (used in)
operating activities
Cash flows from
investing activities
Investment income
Purchase of tangible fixed assets
Proceeds from sale of fixed assets
Movement in investments portfolio
cash
Proceeds from sale of investments
Purchase of investments
Cash provided by / (used in)
investing activities
Increase/(decrease) in cash and
cash equivalents in the year
Cash and cash equivalents b/fwd
Cash and cash equivalents c/fwd		 Group
2024
2022
£
£
(348,169)
(662,958)
(357,615)
(225,519)
11,664
-
247,396
221,681
-
2,416
190,473
72,766
(428,200)
341,759
(684,451)
(249,855)
357,615
225,519
(227,170)
(147,076)
-
-
483,581
(299,553)
5,091,776
6,428,894
(5,436,545)
(5,677,532)
269,257
530,252
(415,194)
280,397
1,446,028
1,165,631
1,030,834
1,446,028		 Charity
2024
2022
£
£
(271,935)
(488,907)
(366,405)
(234,092)
-
-
232,022
191,436
-
-
245,182
(219,328)
(421,669)
326,384
(582,805)
(424,507)
366,405
234,092
(227,170)
(122,597)
-
-
483,581
(299,553)
5,091,776
6,428,894
(5,436,545)
(5,677,532)
278,047
563,304
(304,758)
138,797
1,273,981
1,135,184
969,223
1,273,981		 Charity
2024
2022
£
£
(271,935)
(488,907)
(366,405)
(234,092)
-
-
232,022
191,436
-
-
245,182
(219,328)
(421,669)
326,384
(582,805)
(424,507)
366,405
234,092
(227,170)
(122,597)
-
-
483,581
(299,553)
5,091,776
6,428,894
(5,436,545)
(5,677,532)
278,047
563,304
(304,758)
138,797
1,273,981
1,135,184
969,223
1,273,981
(424,507)
234,092
(122,597)
-
(299,553)
6,428,894
(5,677,532)
563,304
138,797
1,135,184
1,273,981

21

Docusign Envelope ID: 2A54F9C6-28B3-4377-9DBB-051D33A08145

DERIAN HOUSE CHILDRENS HOSPICE

ACCOUNTING POLICIES

FOR THE PERIOD ENDED 31 MARCH 2024

Basis of preparation

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued in October 2019, and the Companies Act 2006. The financial statements have been prepared under the historical cost convention, with the exception of investments which are included at market value. The financial statements are presented in sterling which is the functional currency of the charity.

Derian House Childrens Hospice meets the definition of a public benefit entity under FRS 102.

The charity has availed itself of Paragraph 4(1) of Schedule 1 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 and adapted the Companies Act formats to reflect the special nature of the charity’s activities.

Group financial statements

The statement of financial activities (SOFA) and balance sheet consolidate the financial statements of the charity and its subsidiary undertakings. The results of the subsidiaries are consolidated on a line by line basis.

The company owns all the share capital of Derian House Childrens Hospice Shops Ltd. The taxable profits of the subsidiaries are paid to the company under Gift Aid.

Company status

The charity is a company limited by guarantee. The members of the company are the trustees named on page 1. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity.

Reporting period

These financial statements cover the 15 months period from 1 January 2023 to 31 March 2024. 31 March has been chosen as the reporting date to align the charity with the financial year of their funding, as voted by the trustees. As a result, the figures for the current year are not directly comparable with the year ended 31 December 2022.

Going concern

The trustees assess whether the use of going concern is appropriate i.e. whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the company to continue as a going concern. The trustees make this assessment in respect of a period of at least one year from the date of authorisation for issue of the financial statements.

The trustees have concluded that the charity has adequate resources to continue in operational existence for the foreseeable future and there are no material uncertainties about the charity’s ability to continue as a going concern, thus they continue to adopt the going concern basis of accounting in preparing the financial statements. charity.

Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes. Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular reasons. The aim and use of each designated fund is set out in the notes to the financial statements. Restricted funds are those which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The aim and use of each restricted fund is set out in the notes to the financial statements.

22

Docusign Envelope ID: 2A54F9C6-28B3-4377-9DBB-051D33A08145

ACCOUNTING POLICIES (continued) FOR THE PERIOD ENDED 31 MARCH 2024

DERIAN HOUSE CHILDRENS HOSPICE

Income

All incoming resources are included in the SOFA when the charity is legally entitled to the income and the amount can be quantified with reasonable accuracy. For legacies, entitlement is the earlier of the charity being notified of an impending distribution or the legacy being distributed. Grants are recognised in the SOFA when receivable. When donors specify that grants given to the charity must be used in the future financial years the income is deferred until that year. Assets and investments donated to the charity are included as donation income at market value at the time of receipt. Items donated for resale are included as income when they are sold. Donated facilities are included at the value to the charity where this can be quantified and a third party is bearing the cost. No amounts are included in the financial statements for services donated by volunteers.

Expenditure

All expenditure is accounted for on an accruals basis and has been allocated to the appropriate heading in the accounts. Costs of generating funds include the costs incurred in attracting voluntary income and those incurred in trading activities that raise funds. Charitable activities expenditure comprises those costs incurred by the charity in the delivery of its activities and services for the beneficiaries. Governance costs are those associated with meeting the constitutional and statutory requirements of the charity such as audit fees and preparation of the statutory accounts.

Support costs are those costs which enable fund generating and charitable activities to be undertaken. Where expenditure relates to more than one cost category it is apportioned. The method of apportionment uses the basis of full time equivalent staff numbers. The irrecoverable element of VAT is included with the item of expenditure to which it relates.

Tangible fixed assets

Tangible fixed assets costing more than £1,000 are generally capitalised at cost including any incidental expenses of acquisition. This general policy is subject to the capital nature of project, smaller items may be capitalised if part of a bigger project and higher values may be expensed if part of a cyclical maintenance programme. Any development work to be capitalised will be depreciated on completion of the project.

Depreciation is provided on fixed assets to write off the cost over their estimated useful lives on a straight-line basis at the following principal rates per annum:

Hospice Long Leasehold land and buildings shorter of remaining term lease and 125 years Hospice fixtures and fittings over 4 and 8 years Office fixtures and fittings over 4 years Shop land and buildings over 50 years Shop fixtures and fittings over 3 years Office equipment over 3 years Motor vehicles over 3 and 4 years

Investment Properties

Investment properties are properties which are held for rental income. These are held at fair value, revalued by an appropriately qualified external party as deemed necessary, and therefore there is no requirement for depreciation to be calculated.

Investments

Investments are stated at market value at the balance sheet date, the cost of investments includes commission paid to the investment managers. The SOFA includes the net gains and Losses arising on revaluations and disposals throughout the year. Investments held in foreign currencies have been valued on the relevant basis and translated into sterling at the rate ruling at the balance sheet date. Exchange gains and Losses arising on translation are included as part of the change of market value in the investments. The charity also has an investment in Derian House Children's Hospice Shops Ltd, a wholly owned subsidiary, of which it has full control.

23

Docusign Envelope ID: 2A54F9C6-28B3-4377-9DBB-051D33A08145

ACCOUNTING POLICIES (continued) FOR THE PERIOD ENDED 31 MARCH 2024

DERIAN HOUSE CHILDRENS HOSPICE

Stock

Stock consists of purchased goods for sale and is valued at the lower of cost and net realisable value. Items donated for resale are not included in the financial statements until they are sold.

Pensions

The group contributes to the NHS defined benefit superannuation scheme. This is a multi-employer pension scheme and it is not possible to identify the assets and liabilities of the scheme which are attributable to the group. In accordance with FRS 102 Section 28 therefore, the scheme is accounted for as a defined contribution scheme. The group also contributes to defined contribution schemes for staff who are ineligible to join the NHS superannuation scheme. The assets of all schemes which the group contributes to are held separately from those of the group in independently administered funds. All contributions payable for the year are charged in the SOFA

Finance and operating leases

Rentals paid under operating Leases are charged to the SOFA over the period in which the cost is incurred.

Taxation

The charity is exempt from tax by virtue of Section 505(1) of the Income and Corporation Taxes Act 1988 subject to the continuing requirement that income be applicable and applied to charitable purposes only. Deferred tax is provided in full on timing differences which represent a liability at the balance sheet date, at rates expected to apply when they crystallise based on current tax rates and Law. Timing differences arise from the inclusion of items of income and expenditure in taxation computations in periods different from those in which they are included in the financial statements. Deferred tax is measured on a non-discounted basis.

Financial instruments

The group only has financial assets and liabilities of a kind that qualify as basic financial instruments. Basic financial instruments, including trade and other debtors and creditors are initially recognised at transactions value and subsequently measured at settlement value.

Critical accounting judgements and key sources of estimation uncertainty

In applying the charity's accounting policies, the trustees are required to make judgements, estimates and assumptions in determining the carrying amounts of assets and liabilities. The trustees' judgements, estimates and assumptions are based on the best and most reliable evidence available at the time when the decisions are made and are based on historical experience and other factors that are considered to be applicable. Due to the inherent subjectivity involved in making such judgements, estimates and assumptions, the actual results and outcomes may differ, The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised, if the revision affects only that period, or in the period of the revision and future periods, if the revision affects both current and future periods.

Critical accounting judgements

The critical accounting judgements that the trustees have made in the process of applying the charity's accounting policies that have the most significant effect on the amounts recognised in the statutory financial statements are discussed below. The trustees do not consider there to be any critical accounting judgements.

Key sources of estimation uncertainty

The key assumptions concerning the future, and other key sources of estimation uncertainty, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below. The revaluation of the Investment Property within the Subsidiary undertaking's accounts is based on the valuation provided by an external expert.

24

Docusign Envelope ID: 2A54F9C6-28B3-4377-9DBB-051D33A08145

DERIAN HOUSE CHILDRENS HOSPICE

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 31 MARCH 2024

1 Income from donations, legacies and grants

Income from donations, legacies and grants
Donations and gifts
Legacies
Department of Health grants
General fundraising for Hospice
Prize draw		 2024
£
2,067,701
538,740
2,817,746
101,794
58,143
5,584,124		 2022
£
1,594,404
553,932
1,410,988
125,864
235,080
3,920,268

Included within the Department of Health grants are grant contributions funded by NHS England of £1,337,871 (2022: £938,409).

The charity benefits greatly from the involvement and enthusiastic support of its many volunteers. In accordance with FRS 102 and the charities SORP (FRS 102), the economic contribution of general volunteers is not recognised in the accounts

2 Income from charitable activities

Income from charitable activities
Other grants and service agreements
Commissioned beds
Hospice UK Covid grant funding
Income from other trading activities
Fundraising events
Lottery
Shop Income (note 14)		 2024
£
152,483
3,658
-
156,141
2024
£
269,268
793,159
812,811
1,875,238		 2022
£
23,133
29,850
184,928
237,911
2022
£
178,543
449,571
660,722
1,288,836

3 Income from other trading activities

25

Docusign Envelope ID: 2A54F9C6-28B3-4377-9DBB-051D33A08145

DERIAN HOUSE CHILDRENS HOSPICE

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE PERIOD ENDED 31 MARCH 2024

4
Investment income
Dividend from investments
Bank interest
5
Cost of raising voluntary funds
Salaries and related costs
Other promotional costs
Travelling, training and recruitment
Support costs (note 8)
6
Cost of commercial trading activities
Fundraising events
Shop expenditure (note 14)
7
Charitable activities expenditure
Salaries and related costs:
Care team
Support services
Provision of care services
Occupancy costs
Equipment costs
Travelling, training and recruitment
Motor expenses
Depreciation
Support costs (note 8)		 2024
£
357,615
-
357,615
2024
£
267,094
596,826
435
68,913
933,268
2024
£
59,644
880,255
939,899
2024
£
3,721,721
432,600
4,154,321
212,541
375,424
53,993
9,754
66,671
183,399
1,251,260
6,307,363		 2022
£
225,460
59
225,519
2022
£
232,686
605,884
1,195
64,241
904,006
2022
£
28,050
826,197
854,247
2022
£
2,499,773
341,674
2,841,447
168,952
256,621
50,358
4,439
31,829
157,877
955,489
4,467,012

26

Docusign Envelope ID: 2A54F9C6-28B3-4377-9DBB-051D33A08145

DERIAN HOUSE CHILDRENS HOSPICE

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE PERIOD ENDED 31 MARCH 2024

8 Support costs

2024
2024
2022
Fundraising
Charitable
Fundraising
£
£
£
Salaries and related costs
49,369
896,404
41,413
Postage and telephone
1,723
31,286
1,223
Printing and stationery
287
5,207
279
Legal and professional fees
1,726
31,335
8,149
Travelling, training and recruitment
2,446
44,408
2,422
Computer and other costs
10,190
185,026
7,764
Office equipment costs
48
871
285
Governance costs
586
10,640
592
Depreciation
2,538
46,085
2,114
68,913
1,251,260
64,241
Support costs for fundraising are allocated on the basis of staff numbers.
Net income/(expenditure)
2024
£
Stated after charging:
Operating lease rentals – land and buildings
124,774
Depreciation – owned assets
247,396
(Profit)/loss on disposal of assets
11,664
Audit fees
11,130
Audit fees – subsidiary (part of Shop
expenditure) – note 14
6,095		 2022
Charitable
£
615,943
18,192
4,151
121,216
36,018
115,480
4,240
8,804
31,445
955,489
2022
£
133,579
221,681
-
9,396
5,830

9 Net income/(expenditure)

10 Trustees remuneration and benefits

The Trustees consider that they, together with the senior management team, comprise the key management personnel of the charity in charge of directing and controlling the charity having overall responsibility for ensuring the hospice is managed efficiently. In terms of the charity's subsidiary, the Board is responsible for the overall direction and management.

All Trustees are volunteers and receive no remuneration in connection with their duties as Trustees. There were no Trustees' expenses paid for the current nor prior period.

27

Docusign Envelope ID: 2A54F9C6-28B3-4377-9DBB-051D33A08145

DERIAN HOUSE CHILDRENS HOSPICE

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE PERIOD ENDED 31 MARCH 2024

11 Staff costs

Staff costs
Wages and salaries
National Insurance
Pension costs
The number of employees whose emoluments exceeded £60K were:
£60,001 - £70,000
£80,001 - £90,000
£100,001 - £110,000		 2024
£
5,000,834
485,020
402,282
5,888,136
2024
No.
2
-
1		 2022
£
3,539,464
343,950
297,730
4,181,144
2022
No.
-
1
1

Cost attributable to key management personnel in total was £546,679, this includes Employer NI and pension costs.

The average number of employees, analysed by function was:

Hospice
Hospice at home
General voluntary income
Fundraising activities
Support		 2024
No.
77
9
6
15
21
128		 2022
No.
73
11
7
24
20
135

28

Docusign Envelope ID: 2A54F9C6-28B3-4377-9DBB-051D33A08145

DERIAN HOUSE CHILDRENS HOSPICE

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE PERIOD ENDED 31 MARCH 2024

12
Tangible fixed assets
Group
Hospice
Long
Leasehold
land and
buildings
Fixtures
and
fittings
Office
fixtures
and
fittings
Shop
Property
Shop
Investment
property
Office
equipment
£
£
£
£
£
£
Cost
B/fwd
5,475,494
1,340,787
321,614
84,863
125,000
28,195
Additions
109,319
65,990
51,861
-
-
-
Disposals
-
(37,294)
-
(15,067)
-
(23,163)
Revaluation
-
-
-
-
-
-
C/fwd
5,584,813
1,369,483
373,475
69,796
125,000
5,032
Depreciation
B/fwd
599,028
1,097,683
245,780
62,904
-
24,352
Charge
96,266
75,518
48,623
10,295
-
3,843
Disposals
-
(37,294)
-
(3,403)
-
(23,163)
C/fwd
695,294
1,135,907
294,403
69,796
-
5,032
NBV
C/fwd
4,889,519
233,576
79,072
-
125000
-
B/fwd
4,876,466
243,104
75,834
21,959
125,000
3,843
The Investment Property was valued at market value of £125,000 by Robert Pinkus Et Co on 29 April 2021.
Charity
Hospice
Long
Leasehold
land and
buildings
Fixtures
and
fittings
Office
fixtures
and
fittings
Shop
Property
Shop
Investment
property
Office
equipment
£
£
£
£
£
£
Cost
B/fwd
5,475,494
1,274,244
321,614
-
-
-
Additions
109,319
65,990
51,861
-
-
-
Disposals
-
-
-
-
-
-
Revaluation
-
-
-
-
-
-
C/fwd
5,584,813
1,340,234
373,475
-
-
-
Depreciation
B/fwd
599,028
1,032,376
245,780
-
-
-
Charge
96,266
74,282
48,623
-
-
-
Disposals
-
-
-
-
-
-
C/fwd
695,294
1,106,658
294,403
-
-
-
NBV
C/fwd
4,889,519
233,576
79,072
-
-
-
B/fwd
4,876,466
241,868
75,834
-
-
-		 Motor
Vehicles
£
113,880
-
(13,000)
-
100,880
93,317
12,851
(13,000)
93,168
7,712
20,563
Motor
Vehicles
£
88,080
-
-
-
88,080
67,517
12,851
-
80,368
7,712
20,563		 Total
£
7,489,833
227,170
(88,524)
-
7,628,479
2,123,064
247,396
(76,860)
2,293,600
5,334,879
5,366,769
Total
£
7,159,432
227,170
-
-
7,386,602
1,944,701
232,022
-
2,176,723
5,209,879
5,214,731

29

Docusign Envelope ID: 2A54F9C6-28B3-4377-9DBB-051D33A08145

DERIAN HOUSE CHILDRENS HOSPICE

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE PERIOD ENDED 31 MARCH 2024

13
Fixed asset investments
Group and Charity
Market value at 1 January 2023
Additions
Disposals
Movement in portfolio cash
Net investment gains/(losses)
Market value at 31 March 2024
Historical cost at 31 March 2024
Listed Investments represented by:
Equity shares
Fixed interest securities		 Listed
Investments
14,263,285
5,436,545
(5,091,776)
-
2,165,733
16,773,787
13,827,890
11,062,716
5,711,071
16,773,787		 Portfolio
Cash
905,417
-
-
(483,581)
-
421,836
-
-
-
-		 Total
2024
£
15,168,702
5,436,545
(5,091,776)
(483,581)
2,165,733
17,195,623
13,827,890
11,062,716
5,711,071
16,773,787		 Total
2022
£
17,574,877
5,677,532
(6,428,894)
299,553
(1,954,366)
15,168,702
13,541,734
10,832,558
3,430,727
14,263,285

30

Docusign Envelope ID: 2A54F9C6-28B3-4377-9DBB-051D33A08145

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE PERIOD ENDED 31 MARCH 2024

DERIAN HOUSE CHILDRENS HOSPICE

14 Investments in subsidiary

The charity owns the whole of the issued ordinary share capital of Derian House Children's Hospice Shops Limited, a company registered in England and Wales with the number 02914583. The subsidiary is used for non-primary purpose trading, namely the sale of donated goods through four shops. All activities have been consolidated on a line by line basis in the SOFA. The subsidiary donates its taxable profits to the charity each year by gift aid. The registered address of the subsidiary is the same as that of the Charity. In the opinion of the Trustees the investment in the charity's subsidiary undertaking is worth the amount at which it is stated in the balance sheet of £1,000. Audited financial statements of the subsidiary company for the year ended 31 March 2024, on which an unqualified audit opinion has been given, to be delivered to the Registrar of Companies. A summary of the results are shown below:

Turnover
Cost of sales and other direct costs
Administrative expenses
Other operating income
Interest payable
Profit/(Loss) for the year
Charitable donations to Hospice
Retained Profit/(Loss) for the period
Fixed assets
Current assets
Current liabilities
Net liabilities
Share capital
Profit and loss account
Revaluation reserve
Net funds		 2024
£
801,535
(21,739)
(858,516)
11,276
(8,790)
(76,234)
-
(76,234)
125,000
116,720
(676,442)
(434,722)
1,000
(467,813)
32,091
(434,722)		 2022
£
647,987
(44,324)
(781,873)
12,735
(8,573)
(174,048)
-
(174,048)
152,038
220,777
(731,303)
(358,488)
1,000
(391,579)
32,091
(358,488)

31

Docusign Envelope ID: 2A54F9C6-28B3-4377-9DBB-051D33A08145

DERIAN HOUSE CHILDRENS HOSPICE

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE PERIOD ENDED 31 MARCH 2024

15 Stock

Goods for resale
16
Debtors
Amounts owed by group undertakings
Trade debtors
VAT recoverable
Prepayments and accrued income
17
Creditors: amounts falling due within one year
Trade creditors
Other taxes and social security
Other creditors
Accruals and deferred income		 Group
2024
2022
£
£
27,438
27,438
Group
2024
2022
£
£
-
-
56,761
26,225
29,368
103,505
240,201
387,073
326,330
516,803

Group
2024
2022
£
£
58,114
76,431
118,218
88,431
18,248
46,189
236,920
648,709
431,560
859,760		 Charity
2024
2022
£
£
-
-
Charity
2024
2022
£
£
629,795
678,125
56,563
26,225
23,909
103,505
218,187
365,781
928,454
1,173,636
Charity
2024
2022
£
£
41,037
49,485
118,278
88,002
18,248
46,189
207,350
622,906
384,913
806,582		 Charity
2024
2022
£
£
-
-
Charity
2024
2022
£
£
629,795
678,125
56,563
26,225
23,909
103,505
218,187
365,781
928,454
1,173,636
Charity
2024
2022
£
£
41,037
49,485
118,278
88,002
18,248
46,189
207,350
622,906
384,913
806,582
806,582

Accruals and deferred income at the period end includes deferred income from the Department of Health received in advance, as at 31 March 2024 this was £nil (2022: £341,471). Also included is £32,566 (2022: £195,394) relating to income received from Southampton University Hospitals for the Without Walls project which runs from July 2022 to July 2024. The movement in deferred income for the year was as follows:

Balance b/fwd
Amount released to income in period
Amount deferred in period
Balance c/fwd		 Group
2024
2022
£
£
536,865
244,171
(504,300)
-
33,024
292,694
65,589
536,865		 Charity
2024
2022
£
£
536,865
244,171
(504,300)
-
33,024
292,694
65,589
536,865		 Charity
2024
2022
£
£
536,865
244,171
(504,300)
-
33,024
292,694
65,589
536,865
536,865

32

Docusign Envelope ID: 2A54F9C6-28B3-4377-9DBB-051D33A08145

DERIAN HOUSE CHILDRENS HOSPICE

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE PERIOD ENDED 31 MARCH 2024

18 Funds and analysis by net assets – current period

Restricted funds
Department of health
Other
Unrestricted funds
General funds
Revaluation reserve
Total Charity funds
Shop trading funds
Revaluation reserve
Subsidiary funds
Total Group funds		 Balance at 1
January 2023
£
-
28,075
28,075
19,513,103
2,484,290
21,997,393
22,025,468
(391,579)
32,091
(359,488)
21,665,980		 Income
£
2,817,746
115,407
2,933,153
4,235,944
-
4,235,944
7,169,097
804,021
-
804,021
7,973,118		 Expenditure
£
(2,817,746)
(93,482)
(2,911,228)
(4,529,804)
-
(4,529,804)
(7,441,032)
(880,255)
-
(880,255)
(8,321,287)		 Other gains
or losses &
transfers
£
-
-
-
1,282,290
883,443
2,165,733
2,165,733
-
-
-
2,165,733		 Balance at 31
March 2024
£
-
50,000
50,000
20,501,533
3,367,733
23,869,266
23,919,266
(467,813)
32,091
(435,722)
23,483,544

General funds represent the free funds of the charity which are not designated for particular purposes.

Purposes of designated funds

The Revaluation Reserve Fund is required by the Companies Act 2006 and represents the amount by which fixed assets and investments exceed their historical cost.

Purposes of restricted funds

Restricted funds represent funds received for a specific purpose. The Department of Health fund are grants provided under S64 of the Health Service and Public Health Act 1968 and are awarded at the discretion of the Secretary of State and are recoverable if not used for the purpose for which they were given or the Hospice is in breach of extensive conditions.

The balance carried forward for the current year relates to a donation for a mobility vehicle.

Transfers between funds

Transfers between funds have been made to reflect the movements on the revaluation reserve fund in accordance with the Companies Act requirements and to show the gifting of profits from the trading subsidiary.

33

Docusign Envelope ID: 2A54F9C6-28B3-4377-9DBB-051D33A08145

DERIAN HOUSE CHILDRENS HOSPICE

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE PERIOD ENDED 31 MARCH 2024

18 Funds and analysis by net assets – current period (continued)

Funds and analysis by net assets – current period(continued)
Group
Unrestricted
Funds
Designated
Funds
£
£
Tangible fixed assets
5,302,788
32,091
Investments
13,827,890
3,367,733
Current assets
1,334,602
-
Creditors falling due within one year
(431,560)
-
20,033,720
3,399,824
Charity
Unrestricted
Funds
Designated
Funds
£
£
Tangible fixed assets
5,209,879
-
Investments
13,828,890
3,367,733
Current assets
1,847,677
-
Creditors falling due within one year
(384,913)
-
20,501,533
3,367,733		 Restricted
Funds
£
-
-
50,000
-
50,000
Restricted
Funds
£
-
-
50,000
-
50,000		 Total
2024
£
5,334,879
17,195,623
1,384,602
(431,560)
23,483,544
Total
2024
£
5,209,879
17,196,623
1,897,677
(384,913)
23,919,266

34

Docusign Envelope ID: 2A54F9C6-28B3-4377-9DBB-051D33A08145

DERIAN HOUSE CHILDRENS HOSPICE

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE PERIOD ENDED 31 MARCH 2024

19 Funds and analysis by net assets – prior period

Restricted funds
Department of health
Other
Unrestricted funds
General funds
Revaluation reserve
Total Charity funds
Shop trading funds
Revaluation reserve
Subsidiary funds
Total Group funds
Group
Tangible fixed assets
Investments
Current assets
Creditors falling due within
Charity
Tangible fixed assets
Investments
Current assets
Creditors falling due within		 Balance at 1
January 2022
£
-
1,010
1,010
19,984,904
4,482,830
24,467,734
24,468,744
(217,531)
32,091
(185,440)
24,283,304
one year
one year		 Income
Expenditure
Other gains
or losses &
transfers
£
£
£
1,410,988
(1,410,988)
-
304,380
(275,315)
-
1,715,368
(1,688,303)
-
3,296,444
(3,812,419)
44,174
-
-
(1,998,540)
3,296,444
(3,812,419)
(1,954,366)
5,011,812
(5,500,722)
(1,954,366)
660,722
(834,770)
-
-
-
-
660,722
(834,770)
-
5,672,534
(6,335,492)
(1,954,366)
Unrestricted
Funds
Designated
Funds
Restricted
Funds
£
£
£
5,334,678
32,091
-
12,684,412
2,484,290
-
1,962,194
-
28,075
(859,760)
-
-
19,121,524
2,516,381
28,075
Unrestricted
Funds
Designated
Funds
Restricted
Funds
£
£
£
5,214,731
-
-
12,685,412
2,484,290
-
2,436,359
-
28,075
(806,582)
-
-
19,529,920
2,484,290
28,075		 Income
Expenditure
Other gains
or losses &
transfers
£
£
£
1,410,988
(1,410,988)
-
304,380
(275,315)
-
1,715,368
(1,688,303)
-
3,296,444
(3,812,419)
44,174
-
-
(1,998,540)
3,296,444
(3,812,419)
(1,954,366)
5,011,812
(5,500,722)
(1,954,366)
660,722
(834,770)
-
-
-
-
660,722
(834,770)
-
5,672,534
(6,335,492)
(1,954,366)
Unrestricted
Funds
Designated
Funds
Restricted
Funds
£
£
£
5,334,678
32,091
-
12,684,412
2,484,290
-
1,962,194
-
28,075
(859,760)
-
-
19,121,524
2,516,381
28,075
Unrestricted
Funds
Designated
Funds
Restricted
Funds
£
£
£
5,214,731
-
-
12,685,412
2,484,290
-
2,436,359
-
28,075
(806,582)
-
-
19,529,920
2,484,290
28,075		 Balance at 31
December
2022
£
-
28,075		 Balance at 31
December
2022
£
-
28,075
28,075
19,513,103
2,484,290
21,997,393
22,025,468
(391,579)
32,091
(359,488)
21,665,980

Total
2022
£
5,366,769
15,168,702
1,990,269
(859,760)
28,075 21,665,980
Restricted
Funds
£
-
-
28,075
-		 Total
2022
£
5,214,731
15,169,702
2,464,434
(806,582)
28,075 22,042,285

35

Docusign Envelope ID: 2A54F9C6-28B3-4377-9DBB-051D33A08145

DERIAN HOUSE CHILDRENS HOSPICE

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE PERIOD ENDED 31 MARCH 2024

20 Commitments under operating leases – land & buildings

At 31 March 2024, the subsidiary had future minimum lease payments under non-cancellable operating leases as set out below:

Amounts due within one year
Amounts due between two and five years
Amounts due after five years
Capital commitments
Contracted but not provided for		 2024
£
108,700
204,281
-
312,981
2024
£
-		 2022
£
124,774
186,594
-
311,368
2022
£
-

21 Capital commitments

22 Related party transactions

The charity has taken exemption under FRS102 Sec 33 ‘Related party disclosures’ not to disclose transactions with group companies. There were no further transactions with related parties in the current period or prior year.

36