COMPANY REGISTRATION NUMBER: 02677824 CHARITY REGISTRATION NUMBER: 1008796
Eden Valley Hospice, Carlisle Company Limited by Guarantee Group Financial Statements
31 December 2021
SAINT & CO
Chartered Accountants & Statutory Auditor Sterling House Wavell Drive, Rosehill Carlisle, Cumbria CA1 2SA
Eden Valley Hospice, Carlisle
Company Limited by Guarantee
Financial Statements
Year ended 31 December 2021
| PAGE | |
|---|---|
| Trustees' annual report (incorporating the group director's report) | 1 |
| Independent auditor's report to the members | 15 |
| Consolidated statement of financial activities (including income and | |
| expenditure account) | 19 |
| Consolidated statement of financial position | 20 |
| Statement of financial position | 21 |
| Consolidated statement of cash flows | 22 |
| Notes to the financial statements | 23 |
Eden Valley Hospice, Carlisle
Company Limited by Guarantee
Trustees' Annual Report (Incorporating the Director's Report)
Year ended 31 December 2021
The trustees, who are also the directors for the purposes of company law, present their report and the financial statements of the charity for the year ended 31 December 2021.
OBJECTIVES AND ACTIVITIES
Eden Valley Hospice and Jigsaw Children’s Hospice provide respite, palliative and end of life care and support to adults and children with life-limiting and terminal illnesses. The hospice is a specialist unit.
Our Adult provision offers services for North Cumbria and our Children’s Hospice provides for the whole of Cumbria. We work closely with other care providers, both statutory and voluntary, to deliver seamless care for patients.
Our Mission
'By 2025 everyone in our community with life limiting conditions and palliative care needs will have access to excellent care in the right place at the right time.'
Our Vision
'To provide care and support to people affected by life limiting illness and those who require palliative care.'
Our Values
Caring we always remember we are here for the benefit of our patients, their families and each other
Respect we are always aware of and consider the personal circumstances of others Dignity we treat everyone as an individual
Professional we are accountable, honest, inclusive and never stop improving
Our services
Our services to patients and family include:
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10-bed unit for adult inpatient care
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5-bed Children's Hospice with Day Hospice provision
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Adult Day Care to support people living at home
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24/7 phone advice service
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Outpatient clinics
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Counselling support and specialist social care
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Spiritual care
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Sunflower group to support people caring for family or friends
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Complementary therapy
Our services have been modified during the COVID 19 pandemic; however, we continue to provide specialist care delivered by a skilled team of doctors, nurses, counsellors, social workers, spiritual carers, and therapists. The key pressure has been our ability to recruit appropriately qualified staff, particularly registered nurses. This is a national issue. As a result, and to ensure safe practice we reduced our bed capacity down to 4 adult beds. This has continued. Following a robust recruitment campaign, increasing nurse salaries and providing teaching and learning opportunities we are now in a position to increase to at least 8 adult in-patient beds in April 2022.
Within the children’s Jigsaw unit there were times when we had to temporarily close the unit even though we did continue to support children and their families through several support activities. From January 2022 the Jigsaw unit is now open 24/7 for up to 3 children at any given time.
Our provision both within the adult and children’s services aims to help our patients enjoy the best possible quality of life, through a wide range of treatments, therapies, and nursing & social care. We are proud to offer high quality personalised care which reflects the needs and wishes of each individual adult, young person, and child, creating positive memories.
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Eden Valley Hospice, Carlisle
Company Limited by Guarantee
Trustees' Annual Report (Incorporating the Director's Report) (continued)
Year ended 31 December 2021
STRUCTURE, GOVERNANCE AND MANAGEMENT
Governing document
Eden Valley Hospice, Carlisle was incorporated on 15 January 1992 as a company limited by guarantee with company registration number 02677824 and is registered with the Charity Commission with registration number 1008796. The charitable company is governed by its memorandum and articles of association. The Charity has one wholly owned subsidiary, Eden Valley Hospice (Shop) Limited which operates various retail outlets and a lottery.
Trustees
Governance of the charity is the responsibility of the Board of Trustees. The current Trustees are:
Mrs C M Weaving – Chair Mr David Tattersall Mr J Porter – Vice Chair Dr Bronwyn Kerr Mrs H A Wade Mr Mark Duffell Dr C H Harvey Mr Joseph Barrell Ms R Stephenson
In addition: Mr David Jackson is Retail Director
Recruitment, appointment, training and of trustees
The Board of Trustees is rotated on a cyclical basis. Trustees serve for a period up to four years. At the end of this period trustees may offer themselves for re-election in accordance with the memorandum and articles of association for a subsequent period of up to 4 years, if they have expertise or skills which the Board wishes to retain.
Audits of trustees' skills are carried out regularly and all trustees are expected to engage with and complete all mandatory training modules. If skills gaps are identified within the Board, emphasis is placed on these areas as part of the recruitment process. Advertisements are placed on social media, including LinkedIn and the hospice website and applications are invited from all sectors of the community. Members of the Board of Trustees, led by the Chairman, carry out interviews. Trustees are only appointed after a robust recruitment process that is supported by references and a disclosure and barring service certificate.
An induction programme is established and agreed by the Chairman. Supporting information from the Charity Commission, Hospice UK, Together for Short Lives and Companies House relating to the duties and responsibilities of trustees are also provided to each recruit. Details of relevant courses are shared with trustees to enable them to increase their knowledge and understanding of their role.
Organisational structure
The Chief Executive has responsibility for implementing strategy and overseeing day to day running of the Hospice, which is coordinated through the Senior Management Team. The Senior Management Team consists of:
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Prof P Livsey, Chief Executive
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Mrs. J Wilson, Head of Clinical Services (Deputy Chief Executive and Registered Manager)
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Mrs. S Lacaille-Burton, Head of Marketing and Income Generation
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Mr. N Heaney, External Financial Consultant as Mrs. G Martin, Head of Finance and Support Services resigned March 2021
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Dr T Storr, Medical Director and Consultant in Palliative Care
Eden Valley Hospice, Carlisle is registered with and regulated by the Care Quality Commission.
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Eden Valley Hospice, Carlisle
Company Limited by Guarantee
Trustees' Annual Report (Incorporating the Director's Report) (continued)
Year ended 31 December 2021
The Board of Trustees has overall responsibility for the governance and delivery of services, including agreeing strategy. The Board meets quarterly and takes special interest in specific areas of the Hospice. All conflicts of interest are stated at Board meetings, with expressions of interest noted at all meetings regarding agenda items.
There are four sub-committees with clear terms of reference and delegated powers; these are:
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People Services
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Finance, Audit and Risk
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Clinical Governance
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Marketing and Income Generation
Employee and volunteer involvement
Eden Valley Hospice is fortunate in being supported by 200 dedicated volunteers who offer their time to support such as our shops, reception, day care and in-patient ward support, complementary therapy, counselling and at various fundraising events throughout Cumbria.
These volunteers willingly donate their time to the Hospice, however the impact of the Covid pandemic has greatly reduced their involvement. As we move forward, we are beginning to re-engage with volunteers. As many volunteers are of retirement age and beyond there is some reluctance to return to social spaces so we are looking at recruitment of new volunteers and exploring new ways of working that are not as dependent on volunteer support.
Continual improvement to communications is at the heart of maintaining employees and engaging volunteers. Staff briefings are held weekly, and written communications are maintained through monthly news bulletins and regular staff meetings to ensure that all staff and volunteers are kept informed, briefed on topical issues, and invited to contribute to developments as necessary.
A staff survey is conducted bi-annually with the most recent staff survey took place in October 2021. The next staff survey is scheduled for June 2022. There is an open and transparent approach to the surveys with the results openly shared with all staff. There is also a staff working group that explores the findings and works with the SMT to identify actions. This demonstrates clearer lines of communications, inclusivity and prompt action that results in a more positive and productive workforce.
Related parties
Eden Valley Hospice, Carlisle actively works in partnership with other non-statutory and statutory service providers, commissioning authorities and service users, to develop and promote and deliver specialist palliative care services for both adults and children. Trustees and the Senior Management Team are proactively engaged in securing and sustaining links with a range of commissioning leads, NHS partners and other local providers.
Eden Valley Hospice (Shop) Limited is a wholly owned subsidiary of the charitable company involves retail and lottery operations. Retail operates several retail outlets which predominantly sell donated goods. The lottery operates a weekly lottery, seasonal raffles and an annual grand draw. The profits generated by Eden Valley Hospice (Shop) Limited are donated to Eden Valley Hospice, Carlisle.
Public benefit
Trustees have complied with their duty in section 17(5) of the Charities Act 2011 to have due regard to the Charity Commission’s guidance on public benefit.
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Eden Valley Hospice, Carlisle
Company Limited by Guarantee
Trustees' Annual Report (Incorporating the Director's Report) (continued)
Year ended 31 December 2021
Risk management
Eden Valley Hospice, Carlisle has embedded strategic risk management arrangements that comprise of:
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Identifying, managing and reviewing the strategic risks faced by Eden Valley Hospice, in line with the risk management arrangements and documenting these in a risk register.
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Finance, Audit and Risk sub-committee provides over-sight to the risk management arrangements and considers the Strategic Risk Register at each meeting.
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Establishing and reviewing policies and procedures to mitigate those identified strategic risks.
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Implementing policies and procedures designed to minimise any potential impact on Eden Valley Hospice, Carlisle should those risks materialise.
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Carrying out operational risk assessments on activities and events.
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A process for recording, examining, reporting and reflecting on all accidents, incidents and near misses.
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Business continuity planning arrangements.
The charitable company uses basic financial instruments, including trade debtors and creditors that arise directly from its operations. The main risks associated with these are cash flow, liquidity, reputation and interest risk. The charitable company manages its financial commitments to ensure sufficient liquidity to meet all foreseeable needs.
Fundraising Practices
We are extremely grateful for the support of the many people and organisations within our community, and wider, who raise funds on our behalf. The Income Generation & Marketing Team provide advice, support and guidance to those who notify us of their plans to raise funds. This advice includes statutory requirements and best practice recommendations where relevant.
In order to ensure that we protect the interests of those who are vulnerable and that we fundraise in an ethical manner, we adhere to the Fundraising Regulator’s Code of Practice and the Fundraising Promise. We also promptly action any requests for removal from our mailing lists and database and we promise not to sell or pass on the data of any of our donors and supporters to any third parties under any circumstances. At times when we do use professional fundraising agencies we will only use those who can demonstrate a track record of best practice in the sector and compliance with the Fundraising Regulator.
At present, we engage with one professional fundraising company to carry out lottery canvassing. This company is SEC Fundraising Ltd and the hospice has engaged with them since 2015 and we have an active SLA. They adhere to all relevant legislation and their activity is monitored frequently through shadowing and ‘mystery shopping’.
The Head of Income Generation and Marketing attends each quarterly meeting of the MIG sub committee and full Board of Trustees meeting and reports on progress on income raised, and activity, from fundraising, shops and lottery as well as marketing.
Fundraising Complaints
The hospice is committed to practising the highest standards of fundraising, taking care to ensure all income generation activity reflects the wider Hospice values. The hospice is registered with the Fundraising Regulator and has made a commitment to adhere to all recognised standards in relation to fundraising. The fundraising team works hard to ensure fundraising activity complies with the Chartered Institute of Fundraising Code of Fundraising Practice - the recommended practices of which have now been adopted by the Fundraising Regulator and embedded in the Fundraising Promise made by every charity on joining the regulator.
We received no formal complaints related to fundraising or marketing in 2021.
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Eden Valley Hospice, Carlisle
Company Limited by Guarantee
Trustees' Annual Report (Incorporating the Director's Report) (continued)
Year ended 31 December 2021
Compliance with laws and regulations
The Chief Executive reports to the Board of Trustees and meets regularly with the Chairman. The Board of Trustees meet quarterly, and the senior managers attend these meetings. Minutes from all sub-committees are circulated to the Board of Trustees. The Chair from each sub-committee presents the key points of business from each sub-committee to the Board and decisions and ratifications are recorded.
Key areas of compliance are scrutinised by the relevant sub-committee; Care Quality Commission requirements are overseen by the Clinical Governance sub-committee whereas Strategic Risk Management and Health and Safety is overseen by the Finance, Audit and Risk sub-committee.
Following publication of the Health and Social Care Act 2008 (Regulated Activity) Regulations 2009, Eden Valley Hospice, Carlisle is monitored on essential standards of quality and safety by the Care Quality Commission (CQC). The last full CQC inspection took place in 2016 and the Hospice was judged to be GOOD across all areas. In January 2022 the CQC undertook a review of the hospice through various documentation and the Following publication of the Health and Social Care Act 2008 (Regulated Activity) Regulations 2009, Eden Valley Hospice, Carlisle is monitored on essential standards of quality and safety by the Care Quality Commission (CQC). The last full CQC inspection took place in 2016 and the Hospice was judged to be GOOD across all areas. In January 2022 the CQC undertook a review of the hospice through various documentation and the hospice was upgraded from a Grade two to Grade one, this grading equates to an OUTSTANDING across all areas.
The CEO and Head of Care/ Registered Manager have regular meetings with the nominated CQC Relationship Manager. In addition, the Registered Manager also provides information on notifiable changes/incidents in line with its requirements and ensuring an open and supportive line of communication.
Eden Valley Hospice, Carlisle is monitored in respect of environmental health and has a comprehensive health and safety policy and audit framework in place which is overseen by the Facilities Manager.
The hospice is proud of its comprehensive learning and development framework, this includes coordination and delivery of a comprehensive mandatory on-line learning and development resource through the Bluestream system.
Becoming a learning and development organisation has been a key component to enhance the hospice delivery. Bluestream, an e-learning platform, continues to be utilised through modular based mandatory packages, with additional modules specific to roles and responsibilities. Additional training courses and events are selected and often hosted by the Hospice, to complement the e-learning suite and extend the training arrangements. However, the COVID pandemic has greatly reduced the opportunity for class-based/face-to-face sessions. As a result, the hospice has invested in a high-tech IT system that provides a wide range of opportunities for ways of delivering learning and has created greater opportunities for distance learning on a range of platforms.
Staff appraisals take place annually to ensure individual training needs are identified and met. We continue to review our approach to appraisals to ensure they focused on delivering personal development which support our values and the achievements of our core objectives.
Indemnity Insurance
The charitable company has purchased indemnity insurance during the year on behalf of the trustees. The insurers have indemnified the trustees in respect of any loss arising from any claim which may be made arising from any breach of duty, negligent act/omission and breach of warranty/authority or libel/slander/defamation committed in good faith in connection with the conduct of the business carried out by the charitable company.
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Eden Valley Hospice, Carlisle
Company Limited by Guarantee
Trustees' Annual Report (Incorporating the Director's Report) (continued)
Year ended 31 December 2021
REFERENCE AND ADMINISTRATIVE DETAILS
Registered charity name Eden Valley Hospice, Carlisle Charity registration number 1008796 Company registration number 02677824 Principal office and registered Durdar Road office Carlisle Cumbria CA2 4SD THE TRUSTEES OF THE GROUP Dr B Kerr (Appointed 30 April 2021) Mrs H A Wade Miss K A Jones (Resigned 4 January 2021) Mrs I M Bowles (Resigned 1 January 2022) Dr C L Harvey Mr J F Porter Mrs R Bagshaw (Resigned 10 May 2021) Mr J Barrell (Appointed 30 April 2021) Mr M C Duffell (Appointed 23 April 2021) Mr D A Jackson (Served from 23 April 2021 to 10 May 2021) Ms R Stephenson Mrs C M Weaving Mr M S Iredale (Resigned 06 January 2021) Mrs E M Close (Resigned 28 February 2021) Mr D Tattersall (Appointed 23 April 2021) COMPANY SECRETARY Ms R Stephenson AUDITOR Saint & Co Chartered Accountants & Statutory Auditor Sterling House Wavell Drive, Rosehill Carlisle, Cumbria CA1 2SA BANKERS Clydesdale Bank Plc 239 Kingstown Road Kingstown Industrial Estate Carlisle CA3 0BQ Cumberland Building Society Cumberland House Castle Street Carlisle CA3 8RX
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Eden Valley Hospice, Carlisle
Company Limited by Guarantee
Trustees' Annual Report (Incorporating the Director's Report) (continued)
Year ended 31 December 2021
HSBC Plc English Street Carlisle Cumbria CA3 8JX Shawbrook Bank Ltd Lutea House Warley Hill Business Park Great Warley Brentwood Essex CM13 3BE Handelsbanken 1 Merchant's Drive Parkhouse Road Carlisle Cumbria CA3 0JW
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Eden Valley Hospice, Carlisle
Company Limited by Guarantee
Trustees' Annual Report (Incorporating the Director's Report) (continued)
Year ended 31 December 2021
STRATEGIC REPORT
We regularly review our 2019-2025 strategy to better position us to meeting the external challenges we face. As providers of high-quality end of life care services, we aim to widen, improve, and increase access to our services for the communities we support and help those from diverse and underrepresented groups and in remote communities to access palliative and end of life care that helps them achieve their preferred place of care or death. We set the same targets for our Jigsaw Children’s Hospice that serves the whole of Cumbria.
Due to the Covid pandemic we have reviewed our strategic plan and as such we have in some areas re-focus our activity to create a sustainable future. This work has included considering our short and medium-term plan to help create financial security through creating efficiencies and identifying potential new funding streams.
Our recovery plan, which was reviewed in mid-2021 recognised that our financial position was much stronger than anticipated. The result is that we can enter 2022 with a balanced budget rather than the deficit budget that we had expected.
The demand for our services will continue and we are committed on making hospice care accessible locally to all who need or want it and to improve care across the county and beyond, by educating and supporting others in how care is delivered and how it can be improved upon and discussed at all the Hospice UK forums.
We recognise the importance of working with teams and services across the community and we are committed to continuing to grow key partnerships to strengthen care pathways and access to seamless palliative and end of life services for the communities of Carlisle and Cumbria. We continue to work closely with our colleagues to understand and meet the evolving needs of patients and develop and transform our services and teams to meet changing health and care demand. We are committed to developing partnerships to develop accessible patient pathways that help us deliver the high-quality care and produce evidence to demonstrate best outcomes for patients, their families and carers.
We are currently celebrating our 30[th] anniversary and we recognise the importance of building upon the legacy and reputation the service has established as a provider of high-quality palliative and end of life care for the communities of Carlisle and North Cumbria and for and Jigsaw Children’s Hospice the whole of Cumbria.
Our five strategic aims:
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To provide high quality education and training and deliver research-based practice.
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To improve access to, and quality of our inpatient and day hospice provision.
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To develop an appropriate environment to facilitate the highest quality care for all our patients.
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To transform our hospice provision to enhance the capacity of other provision.
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To ensure our financial stability and security.
ACHIEVEMENTS AND PERFORMANCE
Strategic Review
- Although we completed a fundamental review of our strategic direction in 2019 which resulted in a revised strategy for 2019-2025. This strategy has been reviewed due to the COVID-19 pandemic.
Workforce Planning and Development
- As reflected across the country the key challenge for 2021 was the recruitment of appropriately qualified staff. This was a particular challenge with the clinical area. As a result, we undertook a full review of salaries and ensured that all clinical posts are now in line with the NHS. In addition, we have identified opportunities for career progressions through both short training packages and full programmes of education such as the Nursing Associate Programme. We continue to address the retention and recruitment of staff through external benchmarking across the NHS and hospice sector.
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Eden Valley Hospice, Carlisle
Company Limited by Guarantee
Trustees' Annual Report (Incorporating the Director's Report) (continued)
Year ended 31 December 2021
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The clinical area now has a robust acuity tool to ensure that staff patient ratios are accurate. The staff profile now more closely reflects the needs within all the clinical settings.
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We have reconfigured our facilities team and changed roles and responsibilities, which included the introduction of a new role, Hospitality Lead.
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We continue to improve are pharmaceutical provision and now use a local Pharmaceutical Company and secured further funding from the CCG for the hospice pharmacist and pharmacy technician. We have also transferred the work of one HCA to be dedicated to pharmacy supplies.
Financial Stability
The COVID-19 pandemic has required us to review our financial position and as a result we have:
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Further defined our management reporting information to enable clear and succinct presentation of our financial position, which has helped us to understand the wider implications of our financial risks, sensitivities, and performance through a devolved budget.
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Developed a short-term financial plan, which we review every quarter. This approach will help us to keep abreast of the current uncertain financial climate and help us to ensure our sustainability going forward.
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We are now in year two of our three-year recovery plan, which supports our strategic plan and priorities yet is mindful of the potential changing financial position.
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Identified realistic capital projects plan to continue to improve patient facilities.
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Secured more stability to charity reserve levels which, in part, has enabled us to revisit our approach to managing our investments, expected returns on investments in alignment of risk appetite and the future reserve structures.
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We continue to review our policy framework and revise as necessary to ensure all policies and procedures were owned and reviewed within the required timescales.
Environment
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We have remodelled our four bedded room into two single rooms thus creating a reduction in adult inpatient bed capacity for twelve beds to 10 beds
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We continue to improve security through a more defined access system and security cameras.
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Eden Valley Hospice, Carlisle
Company Limited by Guarantee
Trustees' Annual Report (Incorporating the Director's Report) (continued)
Year ended 31 December 2021
----- Start of picture text -----
2021 2020 2019
Adult In-patient unit
Bed occupancy % 64.28% 89.14% 70%
Patient admissions 127 188 226
Patient deaths 87 102 153
Patient discharges 44 71 73
Referrals (% admitted) 57.73% 69.89% 67%
Average length of stay 12.34 10.49 9
Day Hospice
Outpatients in year 98
Attendance rate % Reduced services 64%
Reduced services
Patients discharged due to COVID -19 18
due to COVID-19
Patients deceased 25
Referrals admitted % 71%
Jigsaw Children’s Unit
No. of Patients 52 42 56
Day care sessions attended 685 (49%)
Overnight care sessions provided Reduced Services Reduced services 564 (44%)
Combined day and night respite stays due to COVID-19 due to COVID-19 307
Referrals (% admitted) 5 (38%)
Patient deaths 2 2 5
Bereavement Services – Support to Families and Carers
Total No. service users supported 457
Discharge from 1:1 support Not available Not available 94
No of sessions provided in year 629
Average period in service 102 days
Social Work – Support to Patients
Total No. patients supported Not Available Not available 205
----- End of picture text -----
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Eden Valley Hospice, Carlisle
Company Limited by Guarantee
Trustees' Annual Report (Incorporating the Director's Report) (continued)
Year ended 31 December 2021
FUNDRAISING ARRANGEMENTS
The Marketing and Income Generation team were continued to be challenged in 2021 due to the ongoing government restrictions placed on all public events and social gatherings. The requirement to close the retail outlets during the lockdown in early 2021 has also had an impact on income generation.
However, individual giving has been very productive as has the lottery figures and our legacies have helped to greatly improve the bottom line. The legacies along with government funding, hospice efficiencies and other funding initiatives has provided some financial security within 2021.
FINANCIAL REVIEW
We entered 2021 in a much stronger position than was anticipated. The Covid pandemic meant that much of the fundraising activity did not take place and there was great concern that this would have a huge impact on our financial position. However, after reporting strong results for 2021, we have entered 2022 with significant, positive reserves.
This strong financial position has meant that we have reserves available to fulfil the significant capital projects programme of work which will help secure the desired developments and improvements to our patient facilities.
The Hospice has continued to receive the statutory grants which together amount to just 20% of total expenditure requirements.
Legacies were, once again, exceptional and this was the key contributory factor to maintaining financial stability for the hospice in 2021. It is recognised that the level of legacy income is unpredictable despite on-going monitoring of pipeline funds and therefore we cannot be reliant on this income stream.
Trust income (unrestricted) was also higher than expected and government grants helped to realign income.
Expenditure continues to be carefully managed throughout 2021 and 80% of our costs continue to be attributed to staffing costs. The uplift in clinical salaries were countered by the under recruitment of nurses and HCAs for most of the year.
Through careful budgetary control, seeking efficiencies and applying robust procurement practices, we continue to effectively manage our overhead expenditure and seek opportunities to review and reduce expenditure wherever possible.
Financial forecast
The 2021 budget indicated a post-depreciation deficit of £222,229 due to the anticipated impact on the continuance of the COVID-19 pandemic. The total income of £9,614,285 was £5,685,217 above budget due to the emergency funding received through the latter part of 2020 and the early part of 2021 and strong fundraising income throughout the year. This emergency funding alongside the other income streams and other additional grant monies received was enough to stabilise the income position for the Hospice throughout 2021.
In 2021, the total expenditure incurred was £4,228,023 which was £76,726 more than budget. As most of the expenditure is salary related; the surplus of budgeted salary costs accounted for most of the overall surplus. Recruitment in the clinical area was particularly difficult through the early part of 2021 but, after a review of clinical salary grades, the number of vacancies reduced, and we ended 2021 with almost a full complement of clinical staff.
A planned programme of investment into the facilities of the hospice commenced in 2021 and is expected to continue through 2022 and beyond. 2021 saw extensive improvement works resulting in a spend on repairs
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Eden Valley Hospice, Carlisle
Company Limited by Guarantee
Trustees' Annual Report (Incorporating the Director's Report) (continued)
Year ended 31 December 2021
and renewals exceeding the budgeted figure by £62,262.
Grant funding from the Local Commissioning Group is expected to fall under heavy scrutiny and the Children’s grant funding from the Department of Health remains under pressure. The Hospice will continue to liaise with these external partners and be fully engaged in all funding reviews
We are forecasting a deficit, after depreciation of £140,629 for 2022. The receipt of large legacies cannot be relied upon, the grant funding being capped and the need for investment into the hospice’s facilities and services, will all impact by a reduction in the reserves brought forward from 2021. The strong financial position at the start of 2022, will enable the hospice to absorb the spending requirements which will be felt in 2022.
The impact of the national minimum wage increases in April 2022, together with the need to recruit, retain and develop quality staff, will also have a material impact on the expenditure of the hospice.
After a couple of years of consolidation, plans to progress services and invest in our facilities are well underway as we aim to provide and develop sustainable vital services. The hospice has endured a time of turbulence and has come out of the pandemic period in a very strong financial position. Whilst aiming to invest in the facilities and people of the hospice, we aim to maintain full control of expenditure to help secure the Hospice’s future financial viability.
Senior Management Pay Policy Statement
The directors of the charitable company are the board of trustees, who all give their time freely. No trustees received remuneration.
The Senior Management Team comprises the key management personnel of the Charity, responsible for directing and controlling the day-to-day operations of the Hospice. The pay of senior management positions is considered and agreed by the Workforce sub-committee and any changes to pay and remuneration and appointments to senior management positions must be approved by this sub-committee. The Pay Policy and associated controls applies equally to all staff including senior management. External benchmarking and other market factors are considered when setting the remuneration of senior management positions.
Our Reserves
The trustees have reviewed the reserves of the Charity in year and a Reserves Policy and an Investment Policy has been recently updated and approved. Current investments are on a cash basis with funds committed up to 12 months.
Cash held at the year-end stands at £6,281,416. The net surplus generated in 2021 of £5,394,191 as a welcome improvement on expected income.
The Charity’s total net assets are valued at £13,223,330. This is split between restricted and unrestricted funds. Restricted funds are valued at £2,655,687 (20%). Unrestricted funds are valued at £10,567,643 (80%). Its working capital, which is expressed by Net Current Assets, is £9,440,400.
The Charity’s unrestricted funds have been assembled to provide cash reserves equivalent to two years’ operating costs (circa £10m). This adheres to the reserves policy statement to provide sufficient cash flow resilience and a buffer for uninterrupted services and is in line with the Hospice UK recommendations. Alongside this contingency reserve, designated funds are held to support the development of services and improve our environment for the direct benefit of our patients and their families. Other unrestricted funds are earmarked to support long standing plans for a capital repair and a major refurbishment programme for our inpatient unit which, it is hoped, will progress as part of the Hospice’s 30[th] anniversary celebrations.
The group’s current level of unrestricted free reserves (total funds less the amount held in fixed assets and restricted funds) is £7,035,193. The present level of free reserves available to the Charity of £7,035,193 is below our target of £10m. The trustees are aware of this and work at increasing the level of reserves.
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Eden Valley Hospice, Carlisle
Company Limited by Guarantee
Trustees' Annual Report (Incorporating the Director's Report) (continued)
Year ended 31 December 2021
Tangible fixed assets of £3,532,450 are held for use by the group (unrestricted fund £892,978, restricted fund £2,639,472) and can only be realised by the disposal of these assets.
Investment policy
The Board of Eden Valley Hospice, Carlisle has an approved Investment Policy and has delegated investment decisions to the Audit and Risk committee. The committee has responsibility for agreeing the strategy, monitoring the investments and ensuring funds are placed in ethical investments wherever possible.
The charity has investments with Brewin Dolphin with a specific detailed investment policy including low/medium risk products and the right to exclude those companies that carry out activities contrary to the charity’s aims. The fund managers have a discretionary mandate to best invest in suitable products. The Audit and Risk committee regularly reviews the performance of the investments from information provided by the investment manager.
PLANS FOR FUTURE PERIODS
We operate in a dynamically changing health and social care sector with increasing demand for care services, changing demographic and disease trajectories for both cancer and other life limiting diseases. There are many challenges facing hospice services and the sustainability of operating and financial models. Whilst this causes great uncertainty, it provides us with opportunities to influence, modernise and transform our approach. We seek to meet these challenges head on and aspire to be at the forefront of change. Our strategic direction requires us to question our current approaches, think differently and seeking innovative solutions to achieve better use of resources, increase financial security with the highest service gains and achieve maximum impact for our patients and their families.
We continue to operate in such turbulent and unchartered times. Despite these pressures, we stand committed to our mission and remain passionate in delivering our strategic aims through the continued delivery of vital core services.
As specialists in palliative care provision, we recognise our duty and extended role in supporting and guiding others in the community in palliative care and bereavement support at this very difficult and restrictive time.
We have adapted and restricted (where necessary) our operations to enable us to continue to operate safely through the pandemic and beyond, with full adherence to government guidance. Looking ahead we are exploring innovative ways to remodel our services and approaches to continue to maintain our inpatient unit and reach to our most vulnerable patients in Jigsaw and Day Hospice.
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Eden Valley Hospice, Carlisle
Company Limited by Guarantee
Trustees' Annual Report (Incorporating the Director's Report) (continued)
Year ended 31 December 2021
TRUSTEES' RESPONSIBILITIES STATEMENT
The trustees, who are also directors for the purposes of company law, are responsible for preparing the trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the charity trustees to prepare financial statements for each year which give a true and fair view of the state of affairs of the charitable company and the incoming resources and application of resources, including the income and expenditure, for that period.
In preparing these financial statements, the trustees are required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the applicable Charities SORP;
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make judgments and accounting estimates that are reasonable and prudent;
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.
The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity's transactions and disclose with reasonable accuracy at any time the financial position of the charity 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 charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
AUDITOR
Each of the persons who is a trustee at the date of approval of this report confirms that:
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so far as they are aware, there is no relevant audit information of which the charity's auditor is unaware; and
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they have taken all steps that they ought to have taken as a trustee to make themselves aware of any relevant audit information and to establish that the charity's auditor is aware of that information.
The trustees' annual report and the strategic report were approved on 17 May 2022 and signed on behalf of the board of trustees by:
Ms R Stephenson Trustee
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Eden Valley Hospice, Carlisle
Company Limited by Guarantee
Independent Auditor's Report to the Members of Eden Valley Hospice, Carlisle
Year ended 31 December 2021
OPINION
We have audited the financial statements of Eden Valley Hospice, Carlisle (the 'charity') for the year ended 31 December 2021 which comprise the statement of financial activities (including income and expenditure account), statement of financial position, statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including 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:
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give a true and fair view of the state of the charity's affairs as at 31 December 2021 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;
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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
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 charity 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 charity'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.
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Eden Valley Hospice, Carlisle
Company Limited by Guarantee
Independent Auditor's Report to the Members of Eden Valley Hospice, Carlisle (continued)
Year ended 31 December 2021
OTHER INFORMATION
The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
OPINIONS ON OTHER MATTERS PRESCRIBED BY THE COMPANIES ACT 2006
In our opinion, based on the work undertaken in the course of the audit:
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the information given in the trustees' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
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the trustees' report has been prepared in accordance with applicable legal requirements.
MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION
In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in 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:
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adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
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the financial statements are not in agreement with the accounting records and returns; or
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certain disclosures of trustees' remuneration specified by law are not made; or
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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, the trustees (who are also the directors 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 charity'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 charity or to cease operations, or have no realistic alternative but to do so.
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Eden Valley Hospice, Carlisle
Company Limited by Guarantee
Independent Auditor's Report to the Members of Eden Valley Hospice, Carlisle (continued)
Year ended 31 December 2021
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.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud.
The extent to which the audit was considered capable of detecting irregularities including fraud
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the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
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we identified the laws and regulations applicable to the company through discussions with directors and other management;
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we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company;
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we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
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identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
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making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud;
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To address the risk of fraud through management bias and override of controls, we:
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performed analytical procedures to identify any unusual or unexpected relationships;
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tested journal entries to identify unusual transactions;
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assessed whether judgements and assumptions made in determining the accounting estimates set out in the accounting policies were indicative of potential bias; and
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investigated the rationale behind significant or unusual transactions.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
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agreeing financial statement disclosures to underlying supporting documentation;
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reading the minutes of meetings of those charged with governance;
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enquiring of management as to actual and potential litigation and claims; and
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reviewing correspondence with HMRC, Charity Commission and the company's legal advisors.
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Eden Valley Hospice, Carlisle
Company Limited by Guarantee
Independent Auditor's Report to the Members of Eden Valley Hospice, Carlisle (continued)
Year ended 31 December 2021
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
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 OUR REPORT
This report is made solely to the charity'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 charity'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 charity and the charity's members as a body, for our audit work, for this report, or for the opinions we have formed.
Stuart Farrer (Senior Statutory Auditor)
For and on behalf of Saint & Co Chartered accountants & statutory auditor Sterling House Wavell Drive, Rosehill Carlisle, Cumbria CA1 2SA
20 May 2022
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Eden Valley Hospice, Carlisle
Company Limited by Guarantee
Consolidated Statement of Financial Activities (including income and expenditure account)
Year ended 31 December 2021
| 2021 | 2020 | ||||
|---|---|---|---|---|---|
| Unrestricted | Restricted | ||||
| funds | funds | Total funds | Total funds | ||
| Note | £ | £ | £ | £ | |
| Income and endowments | |||||
| Donations and legacies | 5 | 6,893,842 | 1,060,549 | 7,954,391 | 3,353,255 |
| Charitable activities | 6 | – | – | – | 22,037 |
| Other trading activities | 7 | 1,578,112 | 57,216 | 1,635,328 | 1,662,580 |
| Investment income | 8 | 6,295 | – | 6,295 | 9,161 |
| Other income | 9 | 15,048 | 3,223 | 18,271 | 5,699 |
| -------------------------------------------- | -------------------------------------------- | -------------------------------------------- | -------------------------------------------- | ||
| Total income | 8,493,297 | 1,120,988 | 9,614,285 | 5,052,732 | |
| ============================================ | ============================================ | ============================================ | ============================================ | ||
| Expenditure | |||||
| Expenditure on raising funds | 10 | (1,035,191) | - | (1,035,191) | (704,455) |
| Expenditure on charitable activities | 11,12 |
(1,991,186) | (1,200,263) | (3,191,449) | (3,122,953) |
| Taxation | 13 | (1,383) | - | (1,383) | (540) |
| -------------------------------------------- | -------------------------------------------- | -------------------------------------------- | -------------------------------------------- | ||
| Total expenditure | (3,027,760) | (1,200,263) | (4,228,023) | (3,827,948) | |
| ============================================ | ============================================ | ============================================ | ============================================ | ||
| Net gains on investments | 14 | 7,929 | – | 7,929 | – |
| -------------------------------------------- | -------------------------------------------- | -------------------------------------------- | -------------------------------------------- | ||
| Net income/(expenditure) and net | movement | ||||
| in funds | 5,473,466 | (79,275) | 5,394,191 | 1,224,784 | |
| ============================================ | ============================================ | ============================================ | ============================================ | ||
| Reconciliation of funds | |||||
| Total funds brought forward | 5,094,177 | 2,734,962 | 7,829,139 | 6,604,355 | |
| ------------------------------------------------- | -------------------------------------------- | ------------------------------------------------- | -------------------------------------------- | ||
| Total funds carried forward | 10,567,643 | 2,655,687 | 13,223,330 | 7,829,139 | |
| ================================================= | ============================================ | ================================================= | ============================================ |
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
The notes on pages 23 to 46 form part of these financial statements.
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Eden Valley Hospice, Carlisle
Company Limited by Guarantee
Consolidated Statement of Financial Position
31 December 2021
| 2021 | 2020 | ||||
|---|---|---|---|---|---|
| Note | £ | £ | £ | ||
| FIXED ASSETS | |||||
| Tangible fixed assets | 18 | 3,532,450 | 3,584,586 | ||
| Investments | 19 | 251,245 | - | ||
| -------------------------------------------- | -------------------------------------------- | ||||
| 3,783,695 | 3,584,586 | ||||
| CURRENT ASSETS | |||||
| Stock | 20 | 3,072 | 2,609 | ||
| Debtors | 21 | 3,729,977 | 545,440 | ||
| Investments | 22 | 250 | – | ||
| Cash at bank and in hand | 23 | 6,281,416 | 4,194,925 | ||
| -------------------------------------------- | -------------------------------------------- | ||||
| 10,014,715 | 4,742,974 | ||||
| CREDITORS: amounts falling due within one year | 24 | (574,315) | (498,421) | ||
| -------------------------------------------- | -------------------------------------------- | ||||
| NET CURRENT ASSETS | 9,440,400 | 4,244,553 | |||
| ------------------------------------------------- | -------------------------------------------- | ||||
| TOTAL ASSETS LESS CURRENT LIABILITIES | 13,224,095 | 7,829,139 | |||
| PROVISIONS | (765) | - | |||
| ------------------------------------------------- | -------------------------------------------- | ||||
| NET ASSETS | 13,223,330 | 7,829,139 | |||
| ================================================= | ============================================ | ||||
| FUNDS OF THE GROUP | |||||
| Restricted funds | 2,655,687 | 2,734,962 | |||
| Unrestricted funds | 10,567,643 | 5,094,177 | |||
| ------------------------------------------------- | -------------------------------------------- | ||||
| Total group funds | 28 | 13,223,330 | 7,829,139 | ||
| ================================================= | ============================================ |
These financial statements were approved by the board of trustees and authorised for issue on 17 May, 2022, and are signed on behalf of the board by:
Mr J F Porter Trustee
The notes on pages 23 to 46 form part of these financial statements.
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Eden Valley Hospice, Carlisle
Company Limited by Guarantee
Statement of Financial Position
31 December 2021
| 2021 | 2020 | |||
|---|---|---|---|---|
| Note | £ | £ | £ | |
| FIXED ASSETS | ||||
| Tangible fixed assets | 18 | 3,520,979 | 3,569,629 | |
| Investments | 19 | 251,247 | 2 | |
| -------------------------------------------- | -------------------------------------------- | |||
| 3,772,226 | 3,569,631 | |||
| CURRENT ASSETS | ||||
| Debtors | 21 | 4,408,589 | 577,061 | |
| Investments | 22 | 250 | – | |
| Cash at bank and in hand | 23 | 5,518,961 | 4,080,924 | |
| -------------------------------------------- | -------------------------------------------- | |||
| 9,927,800 | 4,657,985 | |||
| CREDITORS: amounts falling due within one year | 24 | (477,171) | (398,934) | |
| -------------------------------------------- | -------------------------------------------- | |||
| NET CURRENT ASSETS | 9,450,629 | 4,259,051 | ||
| ------------------------------------------------- | -------------------------------------------- | |||
| TOTAL ASSETS LESS CURRENT LIABILITIES | 13,222,855 | 7,828,682 | ||
| ------------------------------------------------- | -------------------------------------------- | |||
| NET ASSETS | 13,222,855 | 7,828,682 | ||
| ================================================= | ============================================ | |||
| FUNDS OF THE CHARITY | ||||
| Restricted funds | 2,655,687 | 2,734,962 | ||
| Unrestricted funds | 10,567,168 | 5,093,720 | ||
| ------------------------------------------------- | -------------------------------------------- | |||
| Total charity funds | 28 | 13,222,855 | 7,829,139 | |
| ================================================= | ============================================ |
The surplus for the financial year of the charitable parent company was £5,394,173 (2020: £1,224,784).
These financial statements were approved by the board of trustees and authorised for issue on 17 May 2022, and are signed on behalf of the board by:
Mr J F Porter Trustee
The notes on pages 23 to 46 form part of these financial statements.
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Eden Valley Hospice, Carlisle
Company Limited by Guarantee
Consolidated Statement of Cash Flows
Year ended 31 December 2021
| 2021 | 2020 | ||
|---|---|---|---|
| Note | £ | £ | |
| CASH FLOWS FROM OPERATING ACTIVITIES | |||
| Net (expenditure)/income | 5,394,191 | 1,224,784 | |
| Adjustments for: | |||
| Depreciation of tangible fixed assets | 161,868 | 163,451 | |
| Other interest receivable and similar income | (6,295) | (9,161) | |
| Government grant income | (135,234) | (667,383) | |
| (Profit)/Loss on disposal of tangible fixed assets | 51 | 377 | |
| Donated fixed assets | (4,079) | - | |
| Interest on hire purchase | 152 | - | |
| Net (gains)/losses on investments | (7,929) | - | |
| Deferred tax movement | 765 | - | |
| Changes in: | |||
| Stocks | (463) | 478 | |
| Trade and other debtors | (3,183,375) | (331,845) | |
| Investments | 250 | - | |
| Trade and other creditors | 78,803 | 39,398 | |
| ----------------------------------------- | -------------------------------------------- | ||
| Cash generated from operations | 2,298,705 | 420,099 | |
| Interest received | 6,295 | 9,161 | |
| ------------------------------------------ | ---------------------------------- | ||
| Net cash from operating activities | 2,305,000 | 429,260 | |
| ======================================== | ================================== | ||
| CASH FLOWS FROM INVESTING ACTIVITIES | |||
| Purchase of tangible assets | (105,704) | (80,150) | |
| Proceeds from sale of tangible assets | - | 500 | |
| Purchase of other investments | (243,566) | - | |
| ---------------------------------------- | ---------------------------------- | ||
| Net cash used in investing activities | (349,270) | (79,650) | |
| ======================================= | ================================== | ||
| CASH FLOWS FROM FINANCING ACTIVITIES | |||
| Government grant income | 135,234 | 667,383 | |
| Payments of finance lease liabilities | (4,222) | - | |
| ---------------------------------- | ---------------------------------- | ||
| Net cash from financing activities | 131,012 | 667,383 | |
| ================================== | ================================== | ||
| NET INCREASE IN CASH AND CASH EQUIVALENTS | 2,086,742 | 1,016,993 | |
| CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR | 4,194,924 | 3,177,932 | |
| -------------------------------------------- | -------------------------------------------- | ||
| CASH AND CASH EQUIVALENTS AT END OF YEAR | 31 | 6,281,666 | 4,194,925 |
| ============================================ | ============================================ |
The notes on pages 23 to 46 form part of these financial statements.
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Eden Valley Hospice, Carlisle
Company Limited by Guarantee
Notes to the Financial Statements (continued)
Year ended 31 December 2021
1. GENERAL INFORMATION
The charity is a public benefit entity and a private company limited by guarantee, registered in England and Wales and a registered charity in England and Wales. The address of the registered office is Durdar Road, Carlisle, Cumbria, CA2 4SD.
2. STATEMENT OF COMPLIANCE
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland', the Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (Charities SORP 2019 (FRS 102)) and the Companies Act 2006.
3. ACCOUNTING POLICIES
Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through income or expenditure.
The financial statements are prepared in sterling, which is the functional currency of the entity.
Basis of consolidation
The consolidated financial statements incorporate the financial statements of the charitable company and all group undertakings. These are adjusted, where appropriate, to conform to group accounting policies. As a consolidated statement of financial activities is published, a separate statement of financial activities for the parent company is omitted from the group financial statements by virtue of section 408 of the Companies Act 2006.
Going concern
The trustees consider that there are no material uncertainties about the group’s ability to continue as a going concern nor any significant areas of uncertainty that affect the carrying value of assets held by the group.
Judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Significant judgements
The trustees consider there to be no significant judgements made in the process of applying the entity's accounting policies.
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Eden Valley Hospice, Carlisle
Company Limited by Guarantee
Notes to the Financial Statements (continued)
Year ended 31 December 2021
3. ACCOUNTING POLICIES (continued)
Key sources of estimation uncertainty
Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. The trustees consider there to be no key sources of estimation uncertainty.
Fund accounting
Unrestricted funds are available for use at the discretion of the trustees to further any of the charity's purposes.
Designated funds are unrestricted funds earmarked by the trustees for particular future project or commitment.
Restricted funds are subjected to restrictions on their expenditure declared by the donor or through the terms of an appeal, and are split between capital funds and income funds.
Incoming resources
All incoming resources are included in the statement of financial activities when entitlement has passed to the charity; it is probable that the economic benefits associated with the transaction will flow to the charity and the amount can be reliably measured. The following specific policies are applied to particular categories of income:
-
income from donations is recognised when there is evidence of entitlement to the gift, receipt is probable and its amount can be measured reliably.
-
income from grants is recognised when the group has entitlement to the funds and any conditions linked to the grants have been met. Where performance conditions are attached to the grant and are yet to be met, the income is recognised as a liability and included on the statement of financial position as deferred income to be released. Grants receivable have been included within donations and legacies as these have been provided for core funding.
-
legacy gift income is recognised on a case by case basis following the grant of probate when the administrator/executor for the estate has communicated in writing both the amount and settlement date.
-
income from donated goods is measured at the fair value of the goods unless this is impractical to measure reliably, in which case the value is derived from the cost to the donor or the estimated resale value. Donated facilities and services are recognised in the accounts when received if the value can be reliably measured. No amounts are included for the contribution of general volunteers.
-
income from contracts for the supply of services is recognised with the delivery of the contracted service. This is classified as unrestricted funds unless there is a contractual requirement for it to be spent on a particular purpose and returned if unspent, in which case it may be regarded as restricted.
-
income from gift aid is recognised at the same time as the gift to which they relate.
-
income from other trading activities such as fundraising events is recognised when there is evidence of entitlement, receipt is probable and its amount can be measured reliably.
- 24 -
Eden Valley Hospice, Carlisle
Company Limited by Guarantee
Notes to the Financial Statements (continued)
Year ended 31 December 2021
3. ACCOUNTING POLICIES (continued)
Incoming resources (continued)
- income from investments is recognised when receivable and the amount can be measured reliably by the charitable company; this is normally upon notification of the interest paid or payable by the bank. Dividends are recognised once the dividend has been declared and notification has been received of the dividend due.
Where income is received in advance of entitlement of receipts its recognised as deferred and included in creditors as deferred income.
Resources expended
Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is classified under headings of the statement of financial activities to which it relates:
-
expenditure on raising funds includes the costs of all fundraising activities, events, non-charitable trading activities, and the sale of donated goods.
-
expenditure on charitable activities includes all costs incurred by a charity in undertaking activities that further its charitable aims for the benefit of its beneficiaries, including those support costs and costs relating to the governance of the charity apportioned to charitable activities.
-
other expenditure includes all expenditure that is neither related to raising funds for the charity nor part of its expenditure on charitable activities.
-
termination benefits are recognised as an expense in income or expenditure immediately. Termination benefits are recognised as a liability and expense only when the company is demonstrably committed either to terminate the employment of an employee or group of employees before the normal retirement date or to provide termination benefits as a result of an offer made in order to encourage voluntary redundancy.
All costs are allocated to expenditure categories reflecting the use of the resource. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs are apportioned between the activities they contribute to on a reasonable, justifiable and consistent basis.
Operating leases
Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.
Taxation
The parent charitable company is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the parent charity is potentially exempt from taxation in respect of income or capital gains received within the categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.
The group taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items
- 25 -
Eden Valley Hospice, Carlisle
Company Limited by Guarantee
Notes to the Financial Statements (continued)
Year ended 31 December 2021
3. ACCOUNTING POLICIES (continued)
Taxation (continued)
recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively.
Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.
Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
Tangible assets
Individual tangible fixed assets, costing £1,000 or more, are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
| Leasehold Property Improvements | - 10% straight line |
|---|---|
| Hospice Land and Buildings | - 20 and 40 years straight line |
| Furniture and Equipment | - 10% straight line and 15% and 25% reducing balance |
| Motor Vehicles | - 25% reducing balance |
Investments
Unlisted equity investments are initially recorded at cost, and subsequently measured at fair value. If fair value cannot be reliably measured, assets are measured at cost less impairment.
Listed investments are measured at fair value with changes in fair value being recognised in income or expenditure.
Cash held in the "Income Account" within the investment portfolio has been classified as current investments since it is considered to be a short term, highly liquid investment.
Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.
For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets.
- 26 -
Eden Valley Hospice, Carlisle
Company Limited by Guarantee
Notes to the Financial Statements (continued)
Year ended 31 December 2021
3. ACCOUNTING POLICIES (continued)
Government grants
Government grants are recognised at the fair value of the asset received or receivable. Grants are not recognised until there is reasonable assurance that the charity will comply with the conditions attaching to them and the grants will be received.
Where the grant does not impose specified future performance-related conditions on the recipient, it is recognised in income when the grant proceeds are received or receivable. Where the grant does impose specified future performance-related conditions on the recipient, it is recognised in income only when the performance-related conditions have been met. Where grants received are prior to satisfying the revenue recognition criteria, they are recognised as a liability.
Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to is present location and condition.
Debtors
Trade debtors and other debtors are measured at their recoverable amounts. Prepayments are calculated as amounts paid during the financial year, but which relate to a future financial period. Accrued income is recognised where the entity is entitled to the income in the financial year, but the receipt does not occur until a future financial year.
Cash and cash equivalents
Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account (other than those held for investment purposes).
Creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the charitable company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.
Accruals are calculated as amounts relating to the financial year, but which are paid for after the year end. Deferred income includes amounts received in the financial year for income relating to future financial periods.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Outstanding pension contributions are at the year end are included within other creditors.
- 27 -
Eden Valley Hospice, Carlisle
Company Limited by Guarantee
Notes to the Financial Statements (continued)
Year ended 31 December 2021
3. ACCOUNTING POLICIES (continued)
Financial instruments
A financial asset or a financial liability is recognised only when the charity becomes a party to the contractual provisions of the instrument.
Basic financial instruments are initially recognised at the amount receivable or payable including any related transaction costs, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.
Current assets and current liabilities are subsequently measured at the cash or other consideration expected to be paid or received and not discounted.
Debt instruments are subsequently measured at amortised cost.
Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised under the appropriate heading in the statement of financial activities in which the initial gain was recognised.
Any reversals of impairment are recognised immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.
4. LIMITED BY GUARANTEE
The charity is a charitable company limited by guarantee and consequently does not have share capital. Every member of the company undertakes to contribute to the assets of the company, in the event of the same being wound up while he or she is a member, or within one year after he or she ceases to be a member, for payment of the debts and liabilities of the company contracted before he or she ceases to be a member, and of the costs, charges and expenses of winding up, and for the adjustment of the rights of the contributories among themselves, such amount as may be required not exceeding £1.
- 28 -
Eden Valley Hospice, Carlisle
Company Limited by Guarantee
Notes to the Financial Statements (continued)
Year ended 31 December 2021
5. DONATIONS AND LEGACIES
| Unrestricted | Restricted | Total Funds | |
|---|---|---|---|
| Funds | Funds | 2021 | |
| £ | £ | £ | |
| DONATIONS | |||
| Donations | 730,980 | 29,677 | 760,657 |
| LEGACIES | |||
| Legacies and bequests | 5,529,919 | 10,000 | 5,539,919 |
| GRANTS | |||
| NHS England Grant - Children | - | 250,351 | 250,351 |
| CCG Grant - Pensions | - | 40,422 | 40,422 |
| CCG Grant - Children | - | 111,284 | 111,284 |
| CCG Grant - Adult | - | 489,563 | 489,563 |
| CCG Grant - Other | - | 17,291 | 17,291 |
| MND Grant | 4,233 | 13,736 | 17,969 |
| Central Government - Hospice Grant | 234,240 | - | 234,240 |
| CCG - NCIC palliative care pathway | 252,372 | - | 252,372 |
| Respite care | 6,864 | - | 6,864 |
| Government emergency funding COVID-19 | 135,234 | - | 135,234 |
| OTHER DONATIONS AND LEGACIES | |||
| Pharmaceutical recharges to NHS Cumbria CCG | - | 98,225 | 98,225 |
| ---------------------------------------- | ----------------------------------------- | ------------------------------------------ | |
| 6,893,842 | 1,060,549 | 7,954,391 | |
| ======================================== | ======================================== | ========================================= | |
| Included within donations above is £3,384 relating to the donated use of a | mini bus and £4,079 relating to | ||
| donated fixed assets. | |||
| Unrestricted | Restricted | Total Funds | |
| Funds | Funds | 2020 | |
| £ | £ | £ | |
| DONATIONS | |||
| Donations | 536,340 | 90,503 | 626,843 |
| LEGACIES | |||
| Legacies and bequests | 766,821 | 30,488 | 797,309 |
| GRANTS | |||
| NHS England Grant - Children | – | 243,059 | 243,059 |
| CCG Grant - Pensions | – | 41,661 | 41,661 |
| CCG Grant - Children | – | 110,880 | 110,880 |
| CCG Grant - Adult | – | 487,786 | 487,786 |
| Training grants | 19,180 | – | 19,180 |
| MND Grant | – | 32,853 | 32,853 |
| Central Government - Hospice Grant | 51,000 | – | 51,000 |
| CCG - NCIC palliative care pathway | 33,136 | – | 33,136 |
| Government emergency funding COVID-19 | 735,669 | 60,000 | 795,669 |
| OTHER DONATIONS AND LEGACIES | |||
| Pharmaceutical recharges to NHS Cumbria CCG | – | 113,879 | 113,879 |
| -------------------------------------------- | -------------------------------------------- | -------------------------------------------- | |
| 2,142,146 | 1,211,109 | 3,353,255 | |
| =========================================== | ============================================ | ============================================ |
- 29 -
Eden Valley Hospice, Carlisle
Company Limited by Guarantee
Notes to the Financial Statements (continued)
Year ended 31 December 2021
6. CHARITABLE ACTIVITIES
| 6. | CHARITABLE ACTIVITIES | |||||
|---|---|---|---|---|---|---|
| Unrestricted | Restricted | Total Funds | ||||
| Funds | Funds | 2021 | ||||
| £ | £ | £ | ||||
| Sale of goods/services as part of direct charitable | ||||||
| activities | - | - | - | |||
| =============== | =============== | =============== | ||||
| Unrestricted | Restricted | Total Funds | ||||
| Funds | Funds | 2020 | ||||
| £ | £ | £ | ||||
| Sale of goods/services as part of direct charitable | ||||||
| activities | 11,386 | 10,651 | 22,037 | |||
| ============================= | ============================= | ============================= | ||||
| 7. | OTHER TRADING ACTIVITIES | |||||
| Unrestricted | Restricted | Total Funds | ||||
| Funds | Funds | 2021 | ||||
| £ | £ | £ | ||||
| Fundraising events | 253,809 | 57,216 | 311,025 | |||
| Sale of donated goods | 478,239 | - | 478,239 | |||
| Lottery sales | 846,064 | - | 846,064 | |||
| ------------------------------------------ | ----------------------------- | ------------------------------------------ | ||||
| 1,578,112 | 57,216 | 1,635,328 | ||||
| ======================================== | ============================ | ======================================== | ||||
| Unrestricted | Restricted | Total Funds | ||||
| Funds | Funds | 2020 | ||||
| £ | £ | £ | ||||
| Fundraising events | 299,271 | 110,637 | 409,908 | |||
| Sales of donated goes | 464,814 | - | 464,814 | |||
| Lottery sales | 787,858 | - | 787,858 | |||
| ------------------------------------ | ---------------------------------- | ---------------------------------------- | ||||
| 1,551,943 | 110,637 | 1,662,580 | ||||
| ================================== | ================================== | ======================================== | ||||
| 8. | INVESTMENT INCOME | |||||
| Unrestricted | Total Funds | Unrestricted | Total Funds | |||
| Funds | 2021 | Funds | 2020 | |||
| £ | £ | £ | £ | |||
| Bank interest receivable | 6,295 | 6,295 | 9,161 | 9,161 | ||
| ====================== | ====================== | ======================== | ======================== | |||
| 9. | OTHER INCOME | |||||
| Unrestricted | Restricted | Total Funds | Unrestricted | Total Funds | ||
| Funds | Funds | 2021 | Funds | 2020 | ||
| £ | £ | £ | £ | £ | ||
| Solar energy income | 4,078 | - | 4,078 | 2,941 | 2,941 | |
| Sundry income | 10,970 | 3,223 | 14,193 | 2,758 | 2,758 | |
| --------------------------- | ----------------------------- | ----------------------------- | ------------------------ | ------------------------ | ||
| 15,048 | 3,223 | 18,271 | 5,699 | 5,699 | ||
| =========================== | ============================ | ============================ | ======================== | ======================== |
- 30 -
Eden Valley Hospice, Carlisle
Company Limited by Guarantee
Notes to the Financial Statements (continued)
Year ended 31 December 2021
10. COSTS OF RAISING FUNDS
| Unrestricted | Total Funds | Unrestricted | Total Funds | |
|---|---|---|---|---|
| Funds | 2021 | Funds | 2020 | |
| £ | £ | £ | £ | |
| Costs of raising donations and legacies | ||||
| Fundraising costs | 26,495 | 26,495 | 16,921 | 16,921 |
| Fundraising consultancy | 49,279 | 49,279 | - | - |
| Marketing and printing | 62,861 | 62,861 | 24,135 | 24,135 |
| Wages | 182,322 | 182,322 | 161,421 | 161,421 |
| Costs of other trading | ||||
| Shop expenditure | 372,702 | 372,702 | 301,728 | 301,728 |
| Lottery expenditure | 341,532 | 341,532 | 200,250 | 200,250 |
| -------------------------------------------- | -------------------------------------------- | ---------------------------------- | ---------------------------------- | |
| 1,035,191 | 1,035,191 | 704,455 | 704,455 | |
| ============================================ | ============================================ | ================================== | ================================== |
11. EXPENDITURE ON CHARITABLE ACTIVITIES
| In- | Day | Children’s | Total 2021 | Total 2020 | ||
|---|---|---|---|---|---|---|
| patients | Services | Hospice | ||||
| Costs directly allocated to activities: | £ | £ | £ | £ | £ | |
| Medical and family support salaries | 297,799 | - | 158,434 | 456,233 | 396,228 | |
| Nursing and care salaries | 893,096 | - | 527,599 | 1,420,695 | 1,421,942 | |
| Medical supplies | 50,466 | - | 23 | 50,489 | 90,497 | |
| Training | 5,702 | - | 1,230 | 6,932 | 8,596 | |
| Admin and support salaries | - | - | - | - | 3,408 | |
| Property and equipment costs | 42,511 | - | 12,849 | 55,360 | 31,987 | |
| House Keeping and laundry | 17,674 | - | - | 17,674 | 322 | |
| Travel and subsistence | 609 | - | 182 | 791 | 2,306 | |
| Legal and professional fees | 4,671 | - | 88 | 4,759 | 9,750 | |
| Other office costs | 1,532 | - | 540 | 2,072 | 849 | |
| Supervision | 2,714 | - | - | 2,714 | - | |
| Subscriptions and publications | 725 | - | 641 | 1,366 | 711 | |
| Sundry expenses | 3,374 | - | - | 3,374 | 1,421 | |
| Support Activities (Note 12) | 768,629 | - | 400,361 | 1,168,990 | 1,154,936 | |
| -------------------------------------------- | -------------------------------------------- | -------------------------------------------- | -------------------------------------------- | -------------------------------------------- | ||
| 2,089,502 | - | 1,101,947 | 3,191,449 | 3,122,953 | ||
| ============================================ | ============================================ | ============================================ | ============================================ | ============================================ |
Expenditure on charitable activities was £3,191,449 (2020: £3,123,493) of which £1,991,186 (2020: £1,763,359) was unrestricted and £1,200,263 (2020: £1,360,134) was restricted.
- 31 -
Eden Valley Hospice, Carlisle
Company Limited by Guarantee
Notes to the Financial Statements (continued)
Year ended 31 December 2021
12. ANALYSIS OF SUPPORT COSTS
Support costs allocated to charitable activities
| In- | Day | Children’s | Total 2021 | Total 2020 | ||
|---|---|---|---|---|---|---|
| patients | Services | Hospice | ||||
| £ | £ | £ | £ | £ | ||
| Medical supplies | 20,525 | - | 10,859 | 31,384 | 16,056 | |
| Uniforms | - | - | - | - | 1,449 | |
| Training | 7,730 | - | 4,090 | 11,820 | 9,043 | |
| Admin and support salaries | 258,841 | - | 137,099 | 395,940 | 458,430 | |
| Advertising | - | - | - | - | 924 | |
| Bank charges and interest | 3,124 | - | 2,780 | 5,904 | 5,516 | |
| Catering salaries | 30,065 | - | 15,915 | 45,980 | 79,590 | |
| Catering supplies and cleaning | 8,390 | - | 4,439 | 12,829 | 19,934 | |
| Housekeeping and laundry | 23,458 | - | 12,411 | 35,869 | 21,852 | |
| Housekeeping salaries | 51,753 | - | 27,405 | 79,158 | 94,459 | |
| Legal and professional | 57,968 | - | 30,629 | 88,597 | 31,727 | |
| Insurance | 25,445 | - | 13,462 | 38,907 | - | |
| Rates and water | 3,454 | - | 1,827 | 5,281 | - | |
| Light and heat | 36,937 | - | 19,542 | 56,479 | - | |
| Property and equipment costs | 59,066 | - | 31,250 | 90,316 | 197,193 | |
| Other office costs | 24,887 | - | 11,859 | 36,746 | 21,656 | |
| Subscriptions and publications | 2,422 | - | 1,281 | 3,703 | 4,834 | |
| Sundry expenses | 16,384 | - | 8,580 | 24,964 | 860 | |
| Telephone | 6,753 | - | 3,573 | 10,326 | 10,450 | |
| Motor, travel and subsistence | 13,631 | - | 5,421 | 19,052 | 11,982 | |
| Supervision | 1,650 | - | 873 | 2,523 | 2,979 | |
| Depreciation | 103,614 | - | 54,818 | 158,432 | 159,164 | |
| Disposal on fixed assets | - | - | - | - | 377 | |
| Governance costs | ||||||
| Bad debts | 6,988 | - | - | 6,988 | - | |
| Investment management fees | 1,370 | - | - | 1,370 | - | |
| Audit and accountancy fees | 4,174 | - | 2,248 | 6,422 | 6,461 | |
| ---------------------------------------------- | -------------------------------------------- | -------------------------------------------- | -------------------------------------------- | -------------------------------------------- | ||
| 768,629 | - | 400,361 | 1,168,990 | 1,154,936 | ||
| =========================================== | =========================================== | =========================================== | =========================================== | =========================================== |
- 32 -
Eden Valley Hospice, Carlisle
Company Limited by Guarantee
Notes to the Financial Statements (continued)
Year ended 31 December 2021
13. TAXATION
Major components of tax expense for the group only
| 2021 | 2020 | |||
|---|---|---|---|---|
| £ | £ | |||
| Current tax: | ||||
| UK current tax expense | 618 | 540 | ||
| Deferred tax: | ||||
| Origination and reversal of timing differences | 765 | – | ||
─────── |
──── |
|||
| Taxation | 1,383 | 540 | ||
═══════ |
════ |
|||
| NET GAINS ON INVESTMENTS | ||||
| Unrestricted | Total Funds | Unrestricted | Total Funds | |
| Funds | 2021 | Funds | 2020 | |
| £ | £ | £ | £ | |
| Gains/(losses) on listed investments | 5,229 | 5,229 | – | – |
| Gains/(losses) on other investment assets | 2,700 | 2,700 | – | – |
─────── |
─────── |
──── |
──── |
|
| 7,929 | 7,929 | – | – | |
═══════ |
═══════ |
════ |
════ |
14. NET GAINS ON INVESTMENTS
15. NET (EXPENDITURE)/INCOME
Net (expenditure)/income is stated after charging/(crediting):
| 2021 | 2020 | |
|---|---|---|
| £ | £ | |
| Depreciation of tangible fixed assets | 161,863 | 163,451 |
| (Profit)/Loss on disposal of fixed assets | 51 | - |
| Operating leases | 70,537 | 92,607 |
| Fees payable for the audit of the financial statements | 4,562 | 5,925 |
| Fees payable to the auditor for other services | 1,860 | 536 |
| ================================== | ================================== |
- 33 -
Eden Valley Hospice, Carlisle
Company Limited by Guarantee
Notes to the Financial Statements (continued)
Year ended 31 December 2021
16. STAFF COSTS
The total staff costs and employee benefits for the reporting period are analysed as follows:
| 2021 | 2020 | |
|---|---|---|
| £ | £ | |
| Wages and salaries | 2,284,899 | 2,413,372 |
| Social security costs | 184,155 | 186,022 |
| Other pension costs | 145,066 | 152,296 |
| -------------------------------------------- | -------------------------------------------- | |
| 2,614,120 | 2,751,690 | |
| ============================================ | ============================================ | |
| The average head count of employees during the year was 94 (2020: 113). | ||
| 2021 | 2020 | |
| No. | No. | |
| Number of fundraising staff | 9 | 10 |
| Number of production staff | 9 | 5 |
| Number of administrative staff | 11 | 16 |
| Number of nursing staff | 53 | 69 |
| Number of house services staff | 12 | 13 |
| --------------- | --------------- | |
| 94 | 113 | |
| =============== | =============== |
During the year, the group made redundancy and payments which totalled £5,419 (2020: £13,846). All redundancy payments made during the current year were voluntary redundancies. The previous year’s redundancies were compulsory redundancies, calculated in accordance with the statutory scheme.
The number of employees whose remuneration for the year fell within the following bands, were:
| 2021 | 2020 | ||
|---|---|---|---|
| No. | No. | ||
| £60,000 | to £69,999 | 3 | 2 |
| =============== | =============== | ||
| £70,000 | to £79,999 | 1 | - |
| =============== | =============== |
Key Management Personnel
Key management personnel include all persons that have authority and responsibility for planning, directing and controlling the activities of the charity. The total compensation paid to key management personnel for services provided to the charity was £245,916 (2020: £257,805).
17. TRUSTEE REMUNERATION AND EXPENSES
No trustees, nor any persons connected with them, have received any remuneration from the group during the year.
No trustees have received any other benefits from the charity during the year.
- 34 -
Eden Valley Hospice, Carlisle
Company Limited by Guarantee
Notes to the Financial Statements (continued) Year ended 31 December 2021
18. TANGIBLE FIXED ASSETS
Group
| Group | ||||||
|---|---|---|---|---|---|---|
| Leasehold | Hospice | Furniture | Assets under | |||
| Property | Land and | Motor | and | the course of | ||
| Improvements | Buildings | Vehicles | Equipment | construction | Total | |
| £ | £ | £ | £ | £ | £ | |
| Cost | ||||||
| At 1 January 2021 | 20,134 | 5,079,326 | 80,140 | 1,110,202 | - | 6,289,802 |
| Additions | - | 1,200 | - | 58,471 | 50,112 | 109,783 |
| Disposals | (1,175) | - | - | (248,332) | - | (249,507) |
| -------------------------------------------- | -------------------------------------------- | -------------------------------------------- | -------------------------------------------- | -------------------------------------------- | -------------------------------------------- | |
| At 31 December 2021 | 18,959 | 5,080,526 | 80,140 | 920,341 | 50,112 | 6,150,078 |
| =========================================== | =========================================== | =========================================== | =========================================== | =========================================== | =========================================== | |
| Depreciation | ||||||
| At 1 January 2021 | 15,177 | 1,744,060 | 63,350 | 882,629 | - | 2,705,216 |
| Charge for the year | 1,272 | 114,524 | 4,201 | 41,871 | - | 161,868 |
| Disposals | (1,175) | - | - | (248,281) | - | (249,456) |
| -------------------------------------------- | -------------------------------------------- | -------------------------------------------- | -------------------------------------------- | -------------------------------------------- | -------------------------------------------- | |
| At 31 December 2021 | 15,274 | 1,858,584 | 67,551 | 676,219 | - | 2,617,628 |
| =========================================== | =========================================== | =========================================== | =========================================== | =========================================== | =========================================== | |
| Carrying amount | ||||||
| At 31 December 2021 | 3,685 | 3,221,942 | 12,589 | 244,122 | 50,112 | 3,532,450 |
| =========================================== | =========================================== | =========================================== | =========================================== | =========================================== | =========================================== | |
| At 31 December 2020 | 4,957 | 3,335,266 | 16,790 | 227,573 | - | 3,584,586 |
| =========================================== | =========================================== | =========================================== | =========================================== | =========================================== | =========================================== |
Charity
| Charity | |||||
|---|---|---|---|---|---|
| Assets under | |||||
| Hospice Land | Motor | Furniture and | the course of | ||
| and Buildings | Vehicles | Equipment | construction | Total | |
| £ | £ | £ | £ | £ | |
| Cost | |||||
| At 1 January 2021 | 5,079,326 | 64,145 | 1,100,705 | - | 6,244,176 |
| Additions | 1,200 | - | 58,471 | 50,112 | 109,783 |
| Disposals | - | - | (247,529) | - | (247,529) |
| -------------------------------------------- | -------------------------------------------- | -------------------------------------------- | ------------------------------------------- | -------------------------------------------- | |
| At 31 December 2021 | 5,080,526 | 64,145 | 911,647 | 50,112 | 6,106,430 |
| =========================================== | =========================================== | =========================================== | =========================================== | =========================================== | |
| Depreciation | |||||
| At 1 January 2021 | 1,744,060 | 53,890 | 876,597 | - | 2,674,547 |
| Charge for the year | 114,524 | 2,567 | 41,342 | - | 158,433 |
| Disposals | - | - | (247,529) | - | (247,529) |
| -------------------------------------------- | -------------------------------------------- | -------------------------------------------- | ------------------------------------------- | -------------------------------------------- | |
| At 31 December 2021 | 1,858,584 | 56,457 | 670,410 | - | 2,585,451 |
| =========================================== | =========================================== | =========================================== | =========================================== | =========================================== | |
| Carrying amount | |||||
| At 31 December 2021 | 3,221,942 | 7,688 | 241,237 | 50,112 | 3,520,979 |
| =========================================== | =========================================== | =========================================== | =========================================== | =========================================== | |
| At 31 December 2020 | 3,335,266 | 10,255 | 224,108 | - | 3,569,629 |
| =========================================== | =========================================== | =========================================== | =========================================== | =========================================== |
- 35 -
Eden Valley Hospice, Carlisle
Company Limited by Guarantee
Notes to the Financial Statements (continued) Year ended 31 December 2021
| 19. | INVESTMENTS | |||||
|---|---|---|---|---|---|---|
| Group | Cash or cash | Listed | Other | |||
| equivalents | investments | investments | Total | |||
| £ | £ | £ | £ | |||
| Cost or valuation | ||||||
| At 1 January 2021 | - | - | - | - | ||
| Additions | 7,035 | 204,203 | 32,078 | 243,316 | ||
| Disposals | - | - | - | - | ||
| Other movements | - | 5,229 | 2,700 | 7,929 | ||
──────── |
────────── |
──────── |
────────── |
|||
| At 31 December 2021 | 7,035 | 209,432 | 34,778 | 251,245 | ||
════════ |
══════════ |
════════ |
══════════ |
|||
| Impairment | ||||||
| At 1 January 2021 and 31 December 2021 | – | – | – | – | ||
════════ |
══════════ |
════════ |
══════════ |
|||
| Carrying amount | ||||||
| At 31 December 2021 | 7,035 | 209,432 | 34,778 | 251,245 | ||
════════ |
══════════ |
════════ |
══════════ |
|||
| At 31 December 2020 | - | - | - | - | ||
════════ |
══════════ |
════════ |
══════════ |
|||
| Charity | Shares in group | Cash or cash | Listed | Other | ||
| undertakings | equivalents | investments | investments | Total | ||
| £ | £ | £ | £ | £ | ||
| Cost or valuation | ||||||
| At 1 January 2021 | 2 | - | - | - | 2 | |
| Additions | - | 7,035 | 204,203 | 32,078 | 243,316 | |
| Disposals | - | - | - | - | - | |
| Other movements | - | - | 5,229 | 2,700 | 7,929 | |
──────── |
──────── |
────────── |
──────── |
────────── |
||
| At 31 December 2021 | 2 | 7,035 | 209,432 | 34,778 | 251,247 | |
════════ |
════════ |
══════════ |
════════ |
══════════ |
||
| Impairment | ||||||
| At 1 January 2021 and | ||||||
| 31 December 2021 | – | – | – | – | – | |
════════ |
════════ |
══════════ |
════════ |
══════════ |
||
| Carrying amount | ||||||
| At 31 December 2021 | 2 | 7,035 | 209,432 | 34,778 | 251,247 | |
════════ |
════════ |
══════════ |
════════ |
══════════ |
||
| At 31 December 2020 | 2 | - | - | - | 2 | |
════════ |
════════ |
══════════ |
════════ |
══════════ |
All investments shown above are held at valuation other than the investment in the subsidiary which is valued at cost.
Financial assets held at fair value
Valuations are prepared by Brewin Dolphin. Valuations are generally prepared on the basis of the middle market price at the close of business on the valuation date, and as supplied by external information providers. For certain securities, the price may be on a different basis e.g. last trade or bid price.
- 36 -
Eden Valley Hospice, Carlisle
Company Limited by Guarantee
Notes to the Financial Statements (continued)
Year ended 31 December 2021
19. INVESTMENTS (continued)
Subsidiary Undertakings
The charity has one trading subsidiary undertaking; Eden Valley Hospice (Shop) Limited (Company Registration Number 02677824). The company is a private company limited by shares, wholly owned and controlled by Eden Valley Hospice, Carlisle. The company is included in the consolidated accounts. The company is registered in England and Wales. The address of the registered office is Durdar Road, Carlisle, Cumbria, CA2 4SD. The principal activity of the subsidiary is that of charity shops and lottery, where a profit is made, this is donated to the parent charity.
The results of the subsidiary are as follows:
| The results of the subsidiary are as follows: | ||
|---|---|---|
| 2021 | 2020 | |
| £ | £ | |
| Gross Turnover | 1,394,002 | 1,380,999 |
| Gross Expenditure | 1,393,984 | 1,380,989 |
| Profit/Loss for the year | 18 | 10 |
| Gross assets as at 31st December | 813,922 | 240,451 |
| Gross liabilities as at 31st December | 813,445 | 239,992 |
| Funds | 477 | 459 |
20. STOCK
| Group | Charity | |||||
|---|---|---|---|---|---|---|
| 2021 | 2020 | 2021 | 2020 | |||
| £ | £ | £ | £ | |||
| Raw materials and consumables | 3,072 | 2,609 | - | - | ||
| ======================== | ======================== | ======================== | ======================== |
21. DEBTORS
| Group | Charity | |||
|---|---|---|---|---|
| 2021 | 2020 | 2021 | 2020 | |
| £ | £ | £ | £ | |
| Trade debtors | 300,234 | 110,036 | 300,234 | 111,199 |
| Amounts owed by group undertakings | - | - | 715,536 | 139,343 |
| Prepayments and accrued income | 3,386,697 | 336,850 | 3,351,896 | 227,965 |
| Other debtors | 43,046 | 98,554 | 40,923 | 98,554 |
| ------------------------------------------ | ---------------------------------- | ------------------------------------------ | ---------------------------------- | |
| 3,729,977 | 545,440 | 4,408,589 | 577,061 | |
| =========================================== | ================================== | =========================================== | ================================== |
22. INVESTMENTS
| Group | Charity | |||||||
|---|---|---|---|---|---|---|---|---|
| 2021 | 2020 | 2021 | 2020 | |||||
| £ | £ | £ | £ | |||||
| Cash equivalents on deposit | 250 | - | 250 | - | ||||
| ======================== | ======================== | ======================== | ======================== |
- 37 -
Eden Valley Hospice, Carlisle
Company Limited by Guarantee
Notes to the Financial Statements (continued)
Year ended 31 December 2021
23. CASH AND CASH EQUIVALENTS
Cash and cash equivalents comprise the following:
| Group | Group | Charity | Charity | ||
|---|---|---|---|---|---|
| 2021 | 2020 | 2021 | 2020 | ||
| £ | £ | £ | £ | ||
| Cash at bank and in hand | 6,281,416 | 4,194,925 | 5,518,961 | 4,080,924 | |
| -------------------------------------------- | -------------------------------------------- | -------------------------------------------- | -------------------------------------------- | ||
| 6,281,416 | 4,194,925 | 5,518,961 | 4,080,924 | ||
| =========================================== | =========================================== | =========================================== | =========================================== | ||
| CREDITORS: amounts falling due within one year | |||||
| Group | Charity | ||||
| 2021 | 2020 | 2021 | 2020 | ||
| £ | £ | £ | £ | ||
| Trade creditors | 75,712 | 80,606 | 62,418 | 66,727 | |
| Accruals and deferred income | 416,911 | 344,532 | 333,676 | 264,926 | |
| Social security and other taxes | 56,800 | 46,665 | 56,800 | 46,665 | |
| Hire purchase agreements | - | 4,070 | - | - | |
| Other creditors | 24,892 | 21,156 | 24,277 | 20,616 | |
| VAT recoverable | - | 1,392 | - | - | |
| ---------------------------------- | ---------------------------------- | ---------------------------------- | ---------------------------------- | ||
| 574,315 | 498,421 | 477,171 | 398,934 | ||
| ================================== | ================================== | ================================== | ================================== |
24. CREDITORS: amounts falling due within one year
Creditors include obligations under hire purchase contracts held by the subsidiary company which are secured of £nil (2020: £4,070).
25. DEFERRED INCOME
| Group | Charity | |||
|---|---|---|---|---|
| 2021 | 2020 | 2021 | 2020 | |
| £ | £ | £ | £ | |
| At January 2021 | 312,898 |
340,322 | 234,392 | 262,924 |
| Amount released to income | (312,898) |
(340,322) | (234,392) | (262,924) |
| Amount deferred in year | 290,547 | 312,898 | 223,363 | 234,392 |
| ---------------------------------- | ---------------------------------- | ---------------------------------- | ---------------------------------- | |
| At 31 December 2021 | 290,547 | 312,898 | 223,363 | 234,932 |
| ================================== | ================================== | ================================== | ================================== |
Deferred income comprises grants received relating to the next financial year and lottery income in advance of future draws.
26. PENSIONS AND OTHER POST RETIREMENT BENEFITS
Defined contribution plans
The amount recognised in expenditure as an expense in relation to defined contribution plans for the group was £145,066 (2020: £152,296). At the balance sheet date £11,276 (2020: £16,483) was included in other creditors in respect of outstanding pension contributions. The expense and liability recognised are allocated to the funds of the charitable group on the same basis as other employee related costs, as specified in the accounting policies.
- 38 -
Eden Valley Hospice, Carlisle
Company Limited by Guarantee
Notes to the Financial Statements (continued)
Year ended 31 December 2021
27. GOVERNMENT GRANTS
The amounts recognised in the financial statements for government grants are as follows:
| Group | Group | Charity | ||
|---|---|---|---|---|
| 2021 | 2020 | 2021 | 2020 | |
| £ | £ | £ | £ | |
| Recognised in income from donations and legacies: | ||||
| Government emergency funding COVID-19 | - | 474,608 | - | 474,608 |
| Coronavirus Job Retention Scheme | 22,115 | 132,775 | 14,131 | 132,775 |
| Local Authority Infection Control funding | 51,404 | 60,000 | 51,404 | 60,000 |
| Coronavirus retail and local restriction grant | 61,715 | 128,286 | - | - |
| --------------------------------- | ---------------------------------- | ---------------------------------- | ---------------------------------- | |
| 135,234 | 795,669 | 65,535 | 667,383 | |
| ================================== | ================================== | ================================== | ================================== |
- 39 -
Eden Valley Hospice, Carlisle
Company Limited by Guarantee
Notes to the Financial Statements (continued)
Year ended 31 December 2021
| 28. ANALYSIS OF CHARITABLE FUNDS |
|||||
|---|---|---|---|---|---|
| Balance at 1 | |||||
| January | Gains, losses | Balance at 31 | |||
| Group | 2021 | Income | Expenditure | and transfers | December 2021 |
| £ | £ | £ | £ | £ | |
| Unrestricted | |||||
| General funds | 5,094,177 | 8,493,297 | (3,027,760) | 7,929 | 10,567,643 |
| Restricted capital and income funds | |||||
| Hospice land | 640,800 | - | - | - | 640,800 |
| Hospice building – Jigsaw | 926,706 | - | (37,365) | - | 889,341 |
| Furniture and equipment | 5,466 | - | (607) | (81) | 4,778 |
| Nurse call system | 2,071 | - | (230) | - | 1,841 |
| Day care extension and improvements | 98,640 | - | (3,621) | - | 95,019 |
| Reception renovations | 26,371 | - | (969) | - | 25,402 |
| Minibus | 624 | - | (176) | 81 | 529 |
| Adult in-patient refurbishment | 16,740 | - | (750) | - | 15,990 |
| Department of Health (section 64) grant | |||||
| – front entrance extensions | 378,680 | - | (12,221) | - | 366,459 |
| Other restricted fund projects | 104,553 | - | (4,421) | (1,895) | 98,237 |
| Department of Health (section 64) grant | |||||
| – front entrance extensions | 188,741 | - | (5,719) | - | 183,022 |
| Department of Health (section 64) grant | |||||
| – ambulance | 5,185 | - | (1,296) | - | 3,889 |
| DOH grant re Walled Garden | 6,631 | - | (462) | - | 6,169 |
| Walled garden | 28,974 | - | (1,976) | (637) | 26,361 |
| Together for Short Lives (2014) | 4,184 | - | (1,178) | - | 3,006 |
| Wallace & Gromit | 10,232 | - | (781) | - | 9,451 |
| Together for Short Lives (2015) | 7,157 | - | (431) | - | 6,726 |
| Donated assets | 53,040 | 4,079 | (4,864) | - | 52,255 |
| Aviva | 18,137 | - | (1,860) | - | 16,277 |
| Day Hospice Bathroom | 3,685 | - | (545) | - | 3,140 |
| Adult Main Bathroom | 22,351 | - | (645) | 2,532 | 24,238 |
| Room 9 refurbishment | 95,497 | - | (645) | - | 94,852 |
| Pond and coffee lounge refurbishment | 9,562 | - | (563) | - | 8,999 |
| Jigsaw Playground | 40,204 | - | (1,886) | - | 38,318 |
| Lottery – IT support | 15,316 | - | (1,702) | - | 13,614 |
| CosyFit Hi Low Bed | - | 2,000 | (441) | - | 1,559 |
| Other restricted fund projects | 16,215 | - | - | - | 16,215 |
| Hospice land | 9,200 | - | - | - | 9,200 |
| Pharmaceutical recharges to NHS | |||||
| Cumbria CCG | - | 98,225 | (98,225) | - | - |
| Donations in relation to Jigsaw | - | 90,653 | (90,653) | - | - |
| CCG grant – adult | - | 489,563 | (489,563) | - | - |
| CCG grant – pensions | - | 40,422 | (40,422) | - | - |
| CCG grant – children’s unit | - | 111,284 | (111,284) | - | - |
| NHS England grant – children | - | 250,351 | (250,351) | - | - |
| Training grants | 17,291 | (17,291) | |||
| Donated lease vehicle | - | 3,384 | (3,384) | - | - |
| MND outreach | - | 13,736 | (13,736) | - | - |
| -------------------------------------------- | -------------------------------------------- | -------------------------------------------- | -------------------------------------------- | -------------------------------------------- | |
| Total restricted | 2,734,962 | 1,120,988 | (1,200,263) | - | 2,655,687 |
| -------------------------------------------- | -------------------------------------------- | -------------------------------------------- | -------------------------------------------- | -------------------------------------------- | |
| Total funds | 7,829,139 | 9,614,285 | (4,228,023) | 7,929 | 13,223,330 |
| ============================================ | ============================================ | ============================================ | ============================================ | ============================================ |
The total carried forward restricted funds are £2,655,687 (2020: £2,734,962), which are split as restricted capital funds £2,630,272 (2020: £2,709,547) and restricted income funds of £25,415 (2020: £25,415).
- 40 -
Eden Valley Hospice, Carlisle
Company Limited by Guarantee
Notes to the Financial Statements (continued)
Year ended 31 December 2021
| 28. | ANALYSIS OF CHARITABLE FUNDS | (continued) | ||||
|---|---|---|---|---|---|---|
| Balance at | Gains, | Balance at 31 | ||||
| 1 January | losses and | December | ||||
| Charity | 2021 | Income | Expenditure | transfers | 2021 | |
| £ | £ | £ | £ | £ | ||
| Unrestricted | ||||||
| General funds | 5,093,720 | 7,777,662 | (2,312,143) | 7,929 | 10,567,168 | |
| Restricted capital and income funds | ||||||
| Hospice land | 640,800 | - | - | - | 640,800 | |
| Hospice building – Jigsaw | 926,706 | - | (37,365) | - | 889,341 | |
| Furniture and equipment | 5,466 | - | (607) | (81) | 4,778 | |
| Nurse call system | 2,071 | - | (230) | - | 1,841 | |
| Day care extension and improvements | 98,640 |
- | (3,621) | - | 95,019 | |
| Reception renovations | 26,371 | - | (969) | - | 25,402 | |
| Minibus | 624 | - | (176) | 81 | 529 | |
| Adult in-patient refurbishment | 16,740 | - | (750) | - | 15,990 | |
| Department of Health (section 64) | ||||||
| grant – front entrance extensions | 378,680 | - | (12,221) | - | 366,459 | |
| Other restricted fund projects | 104,553 | - | (4,421) | (1,895) | 98,237 | |
| Department of Health (section 64) | ||||||
| grant – front entrance extensions | 188,741 | - | (5,719) | - | 183,022 | |
| Department of Health (section 64) | ||||||
| grant – ambulance | 5,185 | - | (1,296) | - | 3,889 | |
| DOH grant re Walled Garden | 6,631 | - | (462) | - | 6,169 | |
| Walled garden | 28,974 | - | (1,976) | (637) | 26,361 | |
| Together for Short Lives (2014) | 4,184 | - | (1,178) | - | 3,006 | |
| Wallace & Gromit | 10,232 | - | (781) | - | 9,451 | |
| Together for Short Lives (2015) | 7,157 | - | (431) | - | 6,726 | |
| Donated assets | 53,040 | 4,079 | (4,864) | - | 52,255 | |
| Aviva | 18,137 | - | (1,860) | - | 16,277 | |
| Day Hospice Bathroom | 3,685 | - | (545) | - | 3,140 | |
| Adult Main Bathroom | 22,351 | - | (645) | 2,532 | 24,238 | |
| Room 9 refurbishment | 95,497 | - | (645) | - | 94,852 | |
| Pond and coffee lounge refurbishment | 9,562 |
- | (563) | - | 8,999 | |
| Jigsaw Playground | 40,204 | - | (1,886) | - | 38,318 | |
| Lottery – IT support | 15,316 | - | (1,702) | - | 13,614 | |
| CosyFit Hi Low Bed | - | 2,000 | (441) | - | 1,559 | |
| Other restricted fund projects | 16,215 | - | - | - | 16,215 | |
| Hospice land | 9,200 | - | - | - | 9,200 | |
| Pharmaceutical recharges to NHS | ||||||
| Cumbria CCG | - | 98,225 | (98,225) | - | - | |
| Donations in relation to Jigsaw | - | 90,653 | (90,653) | - | - | |
| CCG grant – adult | - | 489,563 | (489,563) | - | - | |
| CCG grant – pensions | - | 40,422 | (40,422) | - | - | |
| CCG grant – children’s unit | - | 111,284 | (111,284) | - | - | |
| NHS England grant – children | - | 250,351 | (250,351) | - | - | |
| Training grants | 17,291 | (17,291) | ||||
| Donated lease vehicle | - | 3,384 | (3,384) | - | - | |
| MND outreach | - | 13,736 | (13,736) | - | - | |
| -------------------------------------------- | -------------------------------------------- | -------------------------------------------- | -------------------------------------------- | -------------------------------------------- | ||
| Total restricted | 2,734,962 | 1,120,988 | (1,200,263) | - | 2,655,687 | |
| -------------------------------------------- | -------------------------------------------- | -------------------------------------------- | -------------------------------------------- | -------------------------------------------- | ||
| Total funds | 7,828,682 | 8,898,650 | (3,512,406) | 7,929 | 13,222,855 | |
| ============================================ | ============================================ | ============================================ | ============================================ | ============================================ |
- 41 -
Eden Valley Hospice, Carlisle
Company Limited by Guarantee
Notes to the Financial Statements (continued)
Year ended 31 December 2021
28. ANALYSIS OF CHARITABLE FUNDS (continued)
| Balance at | Gains, | Balance at 31 | |||
|---|---|---|---|---|---|
| 1 January | Income | Expenditure | losses and | December | |
| Group | 2020 | transfers | 2020 | ||
| £ | £ | £ | £ | £ | |
| Unrestricted | |||||
| General funds | 3,841,656 | 3,720,335 | (2,467,814) | - | 5,094,177 |
| Restricted capital and income funds | |||||
| Hospice land | 640,800 | - | - | - | 640,800 |
| Hospice building – Jigsaw | 964,071 | - | (37,365) | - | 926,706 |
| Furniture and equipment | 6,073 | - | (607) | - | 5,466 |
| Nurse call system | 2,301 | - | (230) | - | 2,071 |
| Day care extension and improvements | 102,261 | - | (3,621) | - | 98,640 |
| Reception renovations | 27,340 | - | (969) | - | 26,371 |
| Minibus | 832 | - | (208) | - | 624 |
| Adult in-patient refurbishment | 17,490 | - | (750) | - | 16,740 |
| Department of Health (section 64) | |||||
| grant – front entrance extensions | 390,901 | - | (12,221) | - | 378,680 |
| Other restricted fund projects | 108,974 | - | (4,421) | - | 104,553 |
| Department of Health (section 64) | |||||
| grant – front entrance extensions | 194,460 | - | (5,719) | - | 188,741 |
| Department of Health (section 64) | |||||
| grant – ambulance | 6,914 | - | (1,729) | - | 5,185 |
| DOH grant re Walled Garden | 7,093 | - | (462) | - | 6,631 |
| Walled garden | 30,769 | - | (1,795) | - | 28,974 |
| Together for Short Lives (2014) | 5,362 | - | (1,178) | - | 4,184 |
| Wallace & Gromit | 11,513 | - | (1,281) | - | 10,232 |
| Together for Short Lives (2015) | 7,588 | - | (431) | - | 7,157 |
| Donated assets | 52,536 | 1,200 | (5,210) | 4,514 | 53,040 |
| Aviva | 19,997 | - | (1,860) | - | 18,137 |
| Day Hospice Bathroom | 4,230 | - | (545) | - | 3,685 |
| Adult Main Bathroom | 23,021 | - | (670) | - | 22,351 |
| Room 9 refurbishment | 96,142 | - | (645) | - | 95,497 |
| Pond and coffee lounge refurbishment | 10,196 | - | (634) | - | 9,562 |
| Jigsaw Playground | 6,393 | 33,972 | (161) | - | 40,204 |
| Lottery – IT support | - | 15,316 | - | - | 15,316 |
| Pharmaceutical recharges to NHS | |||||
| Cumbria CCG | - | 113,879 | (113,879) | - | - |
| Donations in relation to Jigsaw | - | 175,073 | (175,073) | - | - |
| CCG grant – adult | - | 487,786 | (487,786) | - | - |
| CCG grant – pensions | - | 41,661 | (41,661) | - | - |
| CCG grant – children’s unit | - | 110,880 | (110,880) | - | - |
| NHS England grant – children | - | 243,059 | (243,059) | - | - |
| Other restricted fund projects | 16,242 | 11,681 | (7,194) | (4,514) | 16,215 |
| Donated lease vehicle | - | 5,037 | (5,037) | - | - |
| MND outreach | - | 32,853 | (32,853) | - | - |
| Hospice land | 9,200 | - | - | - | 9,200 |
| Local Authority Infection Control | - | 60,000 | (60,000) | - | - |
| -------------------------------------------- | -------------------------------------------- | -------------------------------------------- | ------------------------------------------- | -------------------------------------------- | |
| Total restricted | 2,762,699 | 1,332,397 | (1,360,134) | - | 2,734,962 |
| -------------------------------------------- | -------------------------------------------- | -------------------------------------------- | ------------------------------------------- | -------------------------------------------- | |
| Total funds | 6,604,355 | 5,052,732 | (3,827,948) | - | 7,829,139 |
| ============================================ | ============================================ | ============================================ | ============================================ | ============================================ |
- 42 -
Eden Valley Hospice, Carlisle
Company Limited by Guarantee
Notes to the Financial Statements (continued)
Year ended 31 December 2021
28. ANALYSIS OF CHARITABLE FUNDS (continued)
| Balance at | Gains, | Balance at 31 | |||
|---|---|---|---|---|---|
| 1 January | losses and | December | |||
| Charity | 2020 | Income | Expenditure | transfers | 2020 |
| £ | £ | £ | £ | £ | |
| Unrestricted | |||||
| General funds | 3,841,209 | 3,217,807 | (1,965,296) | - | 5,093,720 |
| Restricted capital and income funds | |||||
| Hospice land | 640,800 | - | - | - | 640,800 |
| Hospice building – Jigsaw | 964,071 | - | (37,365) | - | 926,706 |
| Furniture and equipment | 6,073 | - | (607) | - | 5,466 |
| Nurse call system | 2,301 | - | (230) | - | 2,071 |
| Day care extension and improvements | 102,261 | - | (3,621) | - | 98,640 |
| Reception renovations | 27,340 | - | (969) | - | 26,371 |
| Minibus | 832 | - | (208) | - | 624 |
| Adult in-patient refurbishment | 17,490 | - | (750) | - | 16,740 |
| Department of Health (section 64) grant | |||||
| – front entrance extensions | 390,901 | - | (12,221) | - | 378,680 |
| Other restricted fund projects | 108,974 | - | (4,421) | - | 104,553 |
| Department of Health (section 64) grant | |||||
| – front entrance extensions | 194,460 | - | (5,719) | - | 188,741 |
| Department of Health (section 64) grant | |||||
| – ambulance | 6,914 | - | (1,729) | - | 5,185 |
| DOH grant re Walled Garden | 7,093 | - | (462) | - | 6,631 |
| Walled garden | 30,769 | - | (1,795) | - | 28,974 |
| Together for Short Lives (2014) | 5,362 | - | (1,178) | - | 4,184 |
| Wallace & Gromit | 11,513 | - | (1,281) | - | 10,232 |
| Together for Short Lives (2015) | 7,588 | - | (431) | - | 7,157 |
| Donated assets | 52,536 | 1,200 | (5,210) | 4,514 | 53,040 |
| Aviva | 19,997 | - | (1,860) | - | 18,137 |
| Day Hospice Bathroom | 4,230 | - | (545) | - | 3,685 |
| Adult Main Bathroom | 23,021 | - | (670) | - | 22,351 |
| Room 9 refurbishment | 96,142 | - | (645) | - | 95,497 |
| Pond and coffee lounge refurbishment | 10,196 | - | (634) | - | 9,562 |
| Jigsaw Playground | 6,393 | 33,972 | (161) | - | 40,204 |
| Lottery – IT support | - | 15,316 | - | - | 15,316 |
| Pharmaceutical recharges to NHS | |||||
| Cumbria CCG | - | 113,879 | (113,879) | - | - |
| Donations in relation to Jigsaw | - | 175,073 | (175,073) | - | - |
| CCG grant – adult | - | 487,786 | (487,786) | - | - |
| CCG grant – pensions | - | 41,661 | (41,661) | - | - |
| CCG grant – children’s unit | - | 110,880 | (110,880) | - | - |
| NHS England grant – children | - | 243,059 | (243,059) | - | - |
| Other restricted fund projects | 16,242 | 11,681 | (7,194) | (4,514) | 16,215 |
| Donated lease vehicle | - | 5,037 | (5,037) | - | - |
| MND outreach | - | 32,853 | (32,853) | - | - |
| Hospice land | 9,200 | - | - | - | 9,200 |
| Local Authority Infection Control | - | 60,000 | (60,000) | - | - |
| -------------------------------------------- | -------------------------------------------- | -------------------------------------------- | ------------------------------------------- | -------------------------------------------- | |
| Total restricted | 2,762,699 | 1,332,397 | (1,360,134) | - | 2,734,962 |
| -------------------------------------------- | -------------------------------------------- | -------------------------------------------- | ------------------------------------------- | -------------------------------------------- | |
| Total funds | 6,603,908 | 4,550,204 | (3,325,430) | - | 7,828,682 |
| ============================================ | ============================================ | ============================================ | ============================================ | ============================================ |
- 43 -
Eden Valley Hospice, Carlisle
Company Limited by Guarantee
Notes to the Financial Statements (continued)
Year ended 31 December 2021
29. ANALYSIS OF NET ASSETS BETWEEN FUNDS
| Group | |||
|---|---|---|---|
| Unrestricted | Restricted | Total Funds | |
| Funds | Funds | 2021 | |
| £ | £ | £ | |
| Tangible fixed assets | 892,978 | 2,639,472 | 3,532,450 |
| Investments | 251,245 | - | 251,245 |
| Current assets | 9,424,185 | 16,215 | 9,440,400 |
| Provisions | (765) | - | (765) |
| --------------------------------------------- | ----------------------------------------- | ---------------------------------------------- | |
| Net assets | 10,567,643 | 2,655,687 | 13,223,330 |
| ============================================ | ======================================== | ============================================ | |
| Unrestricted | Restricted | Total Funds | |
| Funds | Funds | 2020 | |
| £ | £ | £ | |
| Tangible fixed assets | 875,039 | 2,709,547 | 3,584,586 |
| Current assets | 4,219,138 | 25,415 | 4,244,553 |
| -------------------------------------------- | -------------------------------------------- | -------------------------------------------- | |
| Net assets | 5,094,177 | 2,734,962 | 7,829,139 |
| ============================================ | ============================================ | ============================================ | |
| Charity | |||
| Unrestricted | Restricted | Total Funds | |
| Funds | Funds | 2021 | |
| £ | £ | £ | |
| Tangible fixed assets | 881,507 | 2,639,472 | 3,520,979 |
| Investments | 251,247 | - | 251,247 |
| Current assets | 9,434,414 | 16,215 | 9,450,629 |
| --------------------------------------------- | ----------------------------------------- | ----------------------------------------------- | |
| Net assets | 10,567,168 | 2,655,687 | 13,222,855 |
| ============================================= | ========================================= | ============================================== | |
| Unrestricted | Restricted | Total Funds | |
| Funds | Funds | 2020 | |
| £ | £ | £ | |
| Tangible fixed assets | 860,082 | 2,709,547 | 3,569,629 |
| Investments | 2 | – | 2 |
| Current assets | 4,233,636 | 25,415 | 4,259,051 |
| -------------------------------------------- | -------------------------------------------- | -------------------------------------------- | |
| Net assets | 5,093,720 | 2,734,962 | 7,828,682 |
| ============================================ | ============================================ | ============================================ |
30. FINANCIAL INSTRUMENTS
The carrying amount for each category of financial instrument is as follows:
| Group | Group | Charity | ||||
|---|---|---|---|---|---|---|
| 2021 | 2020 | 2021 | 2020 | |||
| £ | £ | £ | £ | |||
| Financial assets measured at fair value through | ||||||
| income and expenditure | ||||||
| Investments | 251,245 | - | 251,245 | - | ||
| ================================== | ================================== | ================================== | ================================== |
- 44 -
Eden Valley Hospice, Carlisle
Company Limited by Guarantee
Notes to the Financial Statements (continued)
Year ended 31 December 2021
31. ANALYSIS OF CHANGES IN NET DEBT
Group
| Group | |||
|---|---|---|---|
| At | |||
| At 1 Jan 2021 | Cash flows | 31 Dec 2021 | |
| £ | £ | £ | |
| Cash at bank and in hand | 4,194,925 | 2,086,491 | 6,281,416 |
| Current asset investments | - | 250 | 250 |
| Finance leases and hire purchase contracts | (4,070) | 4,070 | - |
| -------------------------------------------- | -------------------------------------------- | ---------------------------------------- | |
| 4,190,855 | 2,090,811 | 6,281,666 | |
| ============================================ | ============================================ | ========================================= | |
| At | |||
| At 1 Jan 2020 | Cash flows | 31 Dec 2020 | |
| £ | £ | £ | |
| Cash at bank and in hand | 3,177,932 | 1,016,993 | 4,194,925 |
| Finance leases and hire purchase contracts | (8,471) | 4,401 | (4,070) |
| -------------------------------------------- | -------------------------------------------- | ------------------------------------------- | |
| 3,169,461 | 1,021,394 | 4,190,855 | |
| ============================================ | ============================================ | ========================================== | |
| Charity | |||
| At | |||
| At 1 Jan 2021 | Cash flows | 31 Dec 2021 | |
| £ | £ | £ | |
| Cash at bank and in hand | 4,080,925 | 1,438,036 | 5,518,961 |
| Current asset investments | - | 250 | 250 |
| -------------------------------------------- | -------------------------------------------- | ----------------------------------------- | |
| 4,080,925 | 1,438,286 | 5,519,211 | |
| ============================================ | ============================================ | ========================================= | |
| At | |||
| At 1 Jan 2020 | Cash flows | 31 Dec 2020 | |
| £ | £ | £ | |
| Cash at bank and in hand | 2,898,094 | 1,182,830 | 4,080,924 |
| -------------------------------------------- | -------------------------------------------- | -------------------------------------------- | |
| 2,898,094 | 1,182,830 | 4,080,924 | |
| ============================================ | ============================================ | ============================================ |
32. CAPITAL COMMITMENTS
Capital expenditure contracted for but not provided for in the financial statements is as follows:
Group and Charity
| Group and Charity | ||
|---|---|---|
| 2021 | 2020 | |
| £ | £ | |
| Tangible fixed assets | 128,933 | - |
| ================================== | ════ |
- 45 -
Eden Valley Hospice, Carlisle
Company Limited by Guarantee
Notes to the Financial Statements (continued)
Year ended 31 December 2021
33. OPERATING LEASE COMMITMENTS
The total future minimum lease payments under non-cancellable operating leases are as follows:
| Group | Group | Charity | ||
|---|---|---|---|---|
| 2021 | 2020 | 2021 | 2020 | |
| £ | £ | £ | £ | |
| Not later than 1 year | 54,170 | 70,537 | 6,800 | 10,304 |
| Later than 1 year and not later than 5 years | 97,450 | 34,600 | 17,450 | 16,000 |
| Over 5 years | 95,000 | - | - | - |
| --------------------------------- | ---------------------------------- | ---------------------------------- | ---------------------------------- | |
| 246,620 | 105,137 | 24,250 | 26,304 | |
| ================================== | ================================== | ================================== | ================================== |
34. RELATED PARTIES
There were no related party transactions in the current year or the previous year for the group or the charity.
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