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2021-03-31-accounts

ST DAVID’S FOUNDATION HOSPICE CARE

TRUSTEES’ ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

ST DAVID'S FOUNDATION HOSPICE CARE CONTENTS YEAR ENDED 31 MARCH 2021

TRUSTEES REPORT 2
COVID-19 Statement and response 2
Objectives and activities 3
Strategic report 5
Achievements and performance 5
Financial review 7
Plans for future periods 11
Structure, governance and management 11
Reference and administrative details 13
Trustees’ responsibilities in relation to the financial statements 14
Statement of disclosure to our auditors 14
INDEPENDENT AUDITORS' REPORT 15
CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES 17
BALANCE SHEETS 18
CONSOLIDATED STATEMENT OF CASH FLOWS 19
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT 19
NOTES TO THE FINANCIAL STATEMENTS 21

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ST DAVID'S FOUNDATION HOSPICE CARE TRUSTEES REPORT YEAR ENDED 31 MARCH 2021

The Trustees are pleased to present their annual report with the audited, consolidated financial statements of St David’s Foundation Hospice Care (“the Hospice”) for the year ending 31 March 2021.

This Trustees report incorporates the requirements of a Directors’ report required by company law.

COVID-19 Statement and

response

On Monday March 23rd 2020 St David’s Hospice Care faced one of the most difficult times in its history as did many hospices across the UK. The hospice was faced with having to adapt and change its service delivery in a very short timescale. Our priority was to ensure we could deliver our core services but being increasingly mindful of how the pandemic might increase demand for our care.

Overnight two key sources of income (retail and fundraising) stopped abruptly with no indication of how long the pandemic would last.

Financial Response

Furlough – St David’s Hospice Care took the decision to furlough all retail and fundraising staff during the first wave and this approach continued into the second wave in autumn 2020.

Welsh Government Support – St David’s Hospice Care took an active role in negotiating and talking to Welsh Government to highlight the financial risks facing the sector due to the pandemic. This work was led by Hospice UK and Hospices Cymru. The support and response from Welsh Government was very positive and we are very grateful for their support.

Landlord Support – At the beginning of the pandemic we contacted landlords to ask them to offer the hospice a rent holiday. Many landlords were very sympathetic and offered various options to help.

Business Rates Relief and Related Grants – St David’s Hospice Care applied, where applicable, for all grants and relief schemes from the local authorities.

Insurance Claim – A business interruption claim was made and this was successful.

Clinical Response

Clinical Nurse Specialists – Clinical Nurse Specialists introduced virtual visits, Attend Anywhere and increased phone support. All face-to-face visits continued for symptom management and end of life care.

Hospice at Home – Service delivery continued and there was an increase in activity during the pandemic. The service coped remarkably well during very difficult circumstances.

Family Support Team – The services were adapted to virtual platforms and phone support but visits were undertaken where needed.

Day Hospice – Sadly, all four day hospices had to shut temporarily but new ways of supporting patients were

developed and this proved to be very successful. A new befriending service was developed at the beginning of the pandemic to address the issues around loneliness and isolation.

Bereavement – Further investment from Welsh Government ensured St David’s Hospice Care could cope with any increasing demand due to families losing loved ones due to COVID-19.

In Patient Unit – The unit coped well during the first wave and we continued to admit patients as normal. Unfortunately, during November 2020, a COVID-19 outbreak within the staff group took hold and we were unable to admit patients for seven weeks.

Care Homes – St David’s Hospice Care supported many care homes during the pandemic, either with symptom management or by providing staff to care for end of life patients within the home, sincere thanks goes out to all our staff who supported this effort.

The Head of Service for Caerphilly Borough, Palliative Care & Primary Care Diabetes Service at Aneurin Bevan University Health Board acknowledged the work and commitment of St David’s staff by including the following thanks in their newsletter:

The Caerphilly Management Team would sincerely like to thank the St David’s Foundation for all the support they have provided to the Caerphilly locality during the last 10 months. In the spirit of partnership working they have again responded to the calls of support from many different areas, whilst providing a much needed and important community service along with a platinum inpatient service at the St David’s Hospice.

Not only have they provided support to Caerphilly during this second wave of the pandemic but have been kind enough to offer support to other boroughs as well at times of need. St David’s nurses have provided support to our District Nursing Service and have provided specialist nursing support within care homes across Caerphilly during the recent crisis, which we would not have managed without. The support they provided to care home patients was second to none and provided that additional level of specialist nursing support required to negate patients being admitted to a hospital setting unnecessarily.

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ST DAVID'S FOUNDATION HOSPICE CARE TRUSTEES REPORT YEAR ENDED 31 MARCH 2021

PPE – Grateful thanks to Aneurin Bevan University Health Board for their tremendous support with PPE. We were able to ensure our staff and patients remained safe during the pandemic due to their support.

The response from our Health and Safety Officer was extraordinary ensuring a plentiful supply to all front line staff.

Objectives and activities

The principal objective of the Hospice is to relieve sickness and pain among persons who are suffering from any chronic or life-threatening illness in England and Wales. The Hospice currently confines its work to Caerphilly, Monmouthshire, Newport, Torfaen and in South & Mid Powys.

The Hospice provides a specialist, multi-professional palliative care service in community, Day Hospice and inpatient settings.

The main focus of our work is to provide 24-hour supportive palliative nursing care in patients' own homes via our Clinical Nurse Specialists, Hospice at Home team, our In-Patient Unit, our Day Hospices and to provide support through our Family Support Team.

The Hospice aims to meet this objective by:

Putting patients and their carers first

Supporting and empowering staff and volunteers

Strengthening our foundations as a charitable organisation

Engaging with our communities

Looking forward

Striving to be the best at what we do

The Hospice undertakes nine core charitable activities to meet its objectives:

Community Clinical Nurse Specialists

“The CNS always has a smile on her face, a kind word and a fantastic sense of humour. My mother and I have had good days and bad but the CNS always pulled us through the bad and out the other side to a new day again.”

A family member of a patient

The Hospice employs a large team of Clinical Nurse Specialists. They are highly trained, skilled palliative care professionals. The Clinical Nurse Specialists are allocated to GP practices and work as core members of the primary healthcare team. The role of the Clinical Nurse Specialist is to:

Hospice at Home

The Hospice at Home team aims to provide end of life care at home and to enable patients to have choice about where they die. The service also provides respite care to patients to help relieve carer fatigue. The service is delivered with a skill mix of qualified palliative care nurses and health care assistants. Each patient and their family are assessed individually to ensure the Hospice develops the best possible package of care for each situation.

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ST DAVID'S FOUNDATION HOSPICE CARE TRUSTEES REPORT YEAR ENDED 31 MARCH 2021

“The service made all the difference and allowed us to keep dad at home until the end which we couldn’t have otherwise have coped with, thank you.” A relative

Day Hospices

We have 4 Day Hospices which run throughout the week with patients attending between 10am and 4pm at the service most local to them. They are:

for the management of complex symptoms, assessment, emotional or psychological distress, rehabilitation following treatment and care at the end of life. The In-Patient Unit does not provide long term nursing care. Holistic care is coordinated by a multi-professional team, with a mix of skills that encompass the physical, spiritual, psychological and social requirements of patients and families. All admissions to the In-patient Hospice are decided by the ABUHB medical team.

The Family Support Team

The Family Support Team are part of the multi-professional team supporting patients and their families with a wide range of social, financial, practical and emotional needs. The team includes:

Day Hospice is a friendly and comfortable place for patients to meet and gain support from others who are in a similar situation, and take part in a range of activities and interests. Patients are able to choose breakfast and lunch from our menu and can enjoy a relaxing bath at any of the locations. Group or individual relaxation sessions and complementary therapy treatments are also available. There is always a Specialist Palliative Care Nurse on hand for patients to discuss their condition or medication.

The Hospice Harmony Choir

The Hospice Harmony Choir have been singing together for over three years and have performed at music concerts and festivals. Any patient, their carer or family member can join the Choir which usually meets in Blackett Avenue Day Hospice. Those that attend will often report feeling much more energised and uplifted after attending and the group have become a new form of support for each other. On average we have around 30 participants and have more concerts and activities planned, including percussion sessions to be introduced.

In-Patient Unit

“I would like to take time to say a massive thank you to your staff. As I have stated, I have never been treated with so much help and kindness in my life, they do and will go out of their way to help and treat you, not just one of them, all of them. I salute the Hospice for employing a fantastic group who work so well together”

A patient

The In-Patient Unit is a Consultant led Specialist Palliative Care unit with 15 beds for adult patients who suffer from progressive life limiting conditions and live within the five localities of Aneurin Bevan University Health Board (ABUHB). The service is free for patients and families who fulfil the criteria for admission, which include short term care

Social workers work across the community and in patient services supporting patients, families and carers with a wide range of issues.

Welfare Rights Advisors ensure that our patients and families have support to navigate the welfare reforms, access their full entitlements and have fewer money worries.

The Bereavement Service provides support to anyone coping with the loss of a patient of the Hospice.

“T. just listened which really helped me as I am not good at talking about feelings, she was so nice and made me feel at ease. I found her easy to chat to.”

A bereaved relative

Complementary Therapy

The Complementary Therapy Team at St David’s Hospice is made up of experienced therapists. Complementary therapies are offered in conjunction with conventional medical treatment and are offered primarily for the relief of stress and anxiety but can also assist in relieving physical symptoms such as pain, insomnia, nausea and muscle tension. In general, complementary therapies can be used to induce a feeling of well-being and of ‘letting go’ and are also aimed at giving the patient a ‘treat’ rather than a treatment.

Therapies include massage, aromatherapy, reflexology and Reiki and are provided at patient’s homes or within the Day Hospice or In-Patient Unit setting.

Chaplaincy Service

The Hospice has been providing a chaplaincy service since June 2019. The volunteer spiritual care team remain very dedicated and are much appreciated by parents and families alike.

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ST DAVID'S FOUNDATION HOSPICE CARE TRUSTEES REPORT YEAR ENDED 31 MARCH 2021

Occupational Therapy

Historically this service was purchased from ABUHB but now the Hospice employees the OT directly. The service is provided primarily in the In Patient Hospice but the OT also provides community and Day Hospice session. This has been a positive development.

Education

The Education Department works closely with local Universities through endorsements of specific courses and mentoring of student nurses. A wide range of teaching strategies are used to improve the knowledge and skills of staff to care for people, their families and carers facing a progressive life-threatening illness which is no longer curable. Regular courses are provided for nursing and residential homes in palliative care.

Public benefit

Our charitable services are provided without charge to all members of the public with a life threatening illness who are referred by a health care professional and who live in Caerphilly, Monmouthshire, Newport, Torfaen and in South & Mid Powys.

The Trustees are of the opinion that they have complied with their duties to have due regard for the guidance on public benefit. We have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing the Hospice’s aims and objectives and in planning our future activities.

Statement of purpose

St. David's Hospice Care aims to:

Caerphilly, Monmouthshire, Newport, Torfaen and in South & Mid Powys;

Strategic report

The strategic report required under company law comprises the three sections Achievements and performance , Financial review and Plans for future periods below.

Key performance indicators

The Hospice uses a range of performance measures to monitor its performance. The key measures related to its charitable work are given in the achievements and performance section starting on page 5. The key financial performance indicators, including the Hospice’s reserves, are disclosed in the financial review starting on page 7.

Achievements and performance

In last year’s financial statements we set out the following priorities for the forthcoming year:

Priority Outcome
Stabilise income and expenditure by accessing all
Government helpavailable		 This was fully achieved.
Plan for an increase demand on our clinical services
due to COVID-19		 This was fully achieved.
Develop an emergency budget for the year and
implement monthly forecasting		 This was fully achieved.
Keep our staff and volunteers safe This was fully achieved.
Keep our patients safe This was fully achieved.

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ST DAVID'S FOUNDATION HOSPICE CARE TRUSTEES REPORT

YEAR ENDED 31 MARCH 2021

Community Clinical Nurse Specialists

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2021 2020
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2021 2020
Number of patients 3,455 3,371
Average caseload 1,305 1,203
New referrals 2,143 2,296
Discharges 231 254
Deaths 1,734 1,720
Deaths at home 1,291 1,192
% died at home 75% 69%

A St David’s patient

Hospice at Home

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2021 2020
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2021 2020
Average monthly caseload 84 48
New referrals 737 715
Hours of care 48,137 46,738

“The lady that came was a pleasure to have in our home. The night she came to care for my mum I slept for the first time in two weeks, thanks to her care of my mother that night”

The relative of a patient

Day Hospice

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2021 2020
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Average monthly caseload 126
New referrals 344
Attendances 3,366

Complementary Therapy

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2021 2020
Average monthly community caseload 41 67
Treatments given 461 1,556
New referrals 81 416
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The community caseload does not include Day Hospice and IPU patients.

Family Support Team

2021 2020
Social Work
Average monthly caseload 54 55
New referrals 144 204
Visits 546 321
Welfare Rights
Average monthly caseload 110 272
New referrals 583 734
Visits 2 484
Adult bereavement service
Average monthly caseload 58 92
New referrals 186 186
Sessions 710 1,340
Children's bereavment service (Unicorn)
Average monthly caseload 143 142
New referrals (families) 236 275
Sessions 1,344 1,203

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ST DAVID'S FOUNDATION HOSPICE CARE TRUSTEES REPORT YEAR ENDED 31 MARCH 2021

“The service offered a safe place for my child to talk and discuss the bereavement. He was able to talk to someone who could give him age appropriate answers and clarity. Help him understand emotions and that it is ok to cry and be sad sometimes. ”

A parent whose child had used the Unicorn service

In-Patient Unit

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2021 2020
Referrals 249 217
Admissions 191 204
Discharges 57 59
Deaths 113 112
Average length stay in days 17 15
Average bed occupancy 52% 56%
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“I don’t think there is any way the Hospice could improve. They even let my dogs in to visit me.”

An In-Patient Unit patient

The report recommended improvements in some areas of record keeping, updating of care plans and one area of staff training. All these recommendations have now been implemented.

There was no inspection during the year.

“It’s a very relaxed environment.

The staff are wonderful – they take time to explain things and go the extra mile.”

An In-Patient Unit patient

Education

The Education team were unable to operate their normal programme of courses during the year.

Out of hours – on call

This 24-hour a day advice line provides invaluable support to patients, families and healthcare professionals. The demand for this service has remained similar to previous years. A total of 1,742 calls were made in the year (2020 – 2,052).

Clinical risk management

Compliments and complaints

Although the Hospice aims to provide the very best care to our patients and families there are rare occasions where we do not meet the standard we would expect. As a hospice we take every complaint or concern very seriously and aim to learn from these occasions. A copy of our complaints policy can be obtained from the Hospice.

We receive many compliments and always take the opportunity to learn from these situations and share good practice.

Financial review

Overall the Hospice’s income increased from £8,951,000 to £9,037,000. The Hospice’s total expenditure decreased by £952,000 to £7,419,000. The Hospice’s spending on charitable activities decreased by £308,000 from £4,935,000 to £4,627,000.

The financial impact of COVID-19

The pandemic had a substantial impact on the traditional income streams of the hospice. The hospice has been reliant on substantial government support from various sources to replace this lost income which has enabled it to continue to deliver its services.

The hospice is also very grateful for the public’s response to our donation appeal during the year. The financial response to the COVID-19 pandemic is set out on page 2.

Legacy income

The Hospice has recognised legacy income of £718,000. This represents a decrease of £254,000 compared to 2019/20. It compares to an average per year over the five years to 31 March 2021 of £822,000.

Funding sources

The Hospice receives funding to provide its services from a variety of sources. The Hospice received the following from

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ST DAVID'S FOUNDATION HOSPICE CARE TRUSTEES REPORT YEAR ENDED 31 MARCH 2021

the Welsh Government and NHS Health Boards under long term agreements:

% of the
expenditure
Income on charitable
£000 activities
2021 2020 2021 2020
NHS service level
agreements 1,770 1,719 38% 35%
Welsh Government 23 25 0% 1%
1,793 1,744 38% 36%

The Hospice receives additional NHS funding for individual continuing health care packages. .

% of the
expenditure
on charitable
Income activities
£000
2021
2020		 2021
2020
Care packages
436
368		 9%
7%

The Hospice augments this public funding with donations, legacies and grants from trusts. In addition the Hospice operates three core fundraising activities:

As set out on page 2 the hospices ability to raise funds from its charity shops and fundraising events was severely restricted in the year.

Charity shops (retail trading)

The Hospice operates 38 (2020 – 36) charity shops. The shops primarily sell second hand goods donated by members of the public. In addition new goods are sold by the Hospice’s trading subsidiary within the shops. The sale of new goods represented 6% (2020 – 6%) of retail trading income.

Due to shops being closed for substantial periods of the year retail trading suffered a deficit, after allocation of support costs, of £912,000 (2020 - £713,000 surplus). This deficit does not include income from the Job Retention Scheme or Business Rates related grants.

Lottery

The Hospice operates a weekly lottery draw. Most members play every week. Twice a year extra prizes are awarded for the draw. On these weeks additional tickets are sold more widely to the general public.

The net surplus from the lottery after the allocation of support costs was £120,000 (2020 - £145,000). This represents a surplus margin of 36% (2019 - 38%).

During the year door to door ticket sales were suspended for significant periods of the year.

VAT

The Hospice continues to benefit from the VAT refund scheme for palliative care charities which means it has been able to reclaim the VAT on its non-business activities. The additional VAT that the Hospice would not otherwise have been able to recover was £94,000 (2020 - £115,000). The Hospice continues to suffer irrecoverable VAT on some of its expenditure notably expenditure on its lottery and on most fundraising events. The total irrecoverable VAT suffered was £11,000 (2020 - £34,000).

Investment policy

The Trustees reviewed and approved the investment policy on 5 March 2020.

Purpose of the Hospice’s investment

The Hospice’s investment policy is closely aligned with its reserves policy which sets out that free reserves are primarily held to cover an unexpected reduction in income over the forthcoming twelve months. As such the Hospice’s policy is to keep most surplus cash on deposit with UK based institutions. The terms of deposits may range from instant access to twelve months term deposits to ensure the funds are available if required without loss of capital or interest.

However in order to mitigate the risk of a real term loss in the value of reserves due to inflation the Hospice will invest a limited proportion of reserves in asset classes other than cash (the investment portfolio).

The Hospice calculates a risk based, free reserves requirement every year as set out in the reserves policy. This sets out the level of free reserves that the Hospice will seek to hold. The Hospice will retain at least 100% of the free reserves requirement as cash on deposit. Any additional funds may be invested in the portfolios at the discretion of the Senior Management Team.

The level of funds invested in the portfolio will be reported to the Governance Committee as part of the routine management accounts reporting.

Fundraising

Investment Manager

The fundraising department incorporates both the work associated with appealing for donations and the subsequent administration together with the work associated with organising fundraising events. The net surplus from all fundraising, after the allocation of support costs, was £1,762,000 (2020 - £1,980,000). This represents an increased surplus margin of 86% (2020 - 80%).

The investment portfolio will be managed on a discretionary basis which means the buy and sell decisions will be made by an Investment Manager subject to the conditions and ethical considerations set out in this policy. The Investment Manager will be appointed by the Governance Committee.

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ST DAVID'S FOUNDATION HOSPICE CARE TRUSTEES REPORT YEAR ENDED 31 MARCH 2021

The Governance committee may select one or more Investment Managers to manage the portfolio.

The Governance Committee will review the appointment of the Investment Managers at least every five years. This review may include a formal tender for the role at the discretion of the committee.

Objectives of the investment portfolio

Funds in the investment portfolio will be invested to produce the best financial return with an acceptable level of risk.

In the short term, income from the investment portfolio will not be used to fund charitable activities. The investment objective is therefore to increase the overall total return of the fund. Since the expectation is that any income from the investment portfolio will be reinvested in the portfolio, the Hospice does not have a preference for either income or capital growth.

To meet its objectives the Hospice investment portfolio can be invested widely according to the general power of investment and should be diversified by asset class, and by security. Asset classes could include cash, bonds, equities, commodities and any other assets that are deemed suitable for the Hospice. The weighting of the classes of assets will be at the discretion of the Investment Manager subject to the conditions of this policy.

It is anticipated that investments will primarily be in UK based assets.

Benchmarking

Performance of the investment portfolio will be monitored against the FTSE UK Private Investor Balanced index.

Restricted funds

The investment portfolio will not include any restricted funds of the Hospice.

Ethical investment policy

The Hospice will not invest in companies that produce more than 5% of their revenues from the production and distribution of tobacco and alcohol products. This is in line with the overall objectives of the Hospice.

Principal risks and uncertainties

COVID-19

The global pandemic continues to represent a very significant risk to the hospice’s ability to deliver its services effectively. The UK vaccine rollout appears to be effectively controlling the worst aspects of the pandemic and governments internationally and at all levels in the UK have demonstrated an unparalleled commitment to tackling the pandemic. However there remain risks at the wider level such as impacts on the national economy as well as localised risks such as infections within the staff group. These risks may continue for some years.

Financial risks

Risk

Giving due consideration to the proportion of the overall free reserves the investment portfolio represents, the low risk to which the rest of the free reserves are subject and the acceptance of risk identified following the analysis undertaken the risk level has been set as medium high.

A medium high risk level means that a large proportion of the investment portfolio may be held in equity investments. A broader range of equity markets and sectors is likely to be used. However fixed interest and non-equity investments may form part of the portfolio.

Time horizon

The Hospice is expected to exist in perpetuity therefore the Hospice can adopt a long term investment time horizon. For the purpose of this policy, the anticipated investment time horizon is over ten years.

Reporting and monitoring

The Investment Managers will be required to produce a valuation and performance report every month.

The Investment Managers will present a performance report at least once a year.

The Governance Committee have responsibility for agreeing the investment objectives and monitoring the investment assets. The committee will meet at least once a year to review the portfolio, including an analysis of return, risk and asset allocation and to review this policy.

The Trustees identify the financial risks facing the Hospice as part of the review of the reserves policy. The risk based policy identifies over 20 potential risks to the Hospice’s income and expenditure. These may be general, covering a broad class of income or expenditure, or may identify a more specific risk. The principal risks by value are:

The Hospice primarily mitigates these risks by a regular review of the reserves policy which is aligned closely with the risks identified. Action is taken to ensure reserves remain sufficient. Regular management accounts and other management information is prepared monthly and reviewed by management and Trustees to monitor whether, in light of any risks occurring, any mitigating action is necessary.

Non-financial risks

The Hospice also faces non-financial risks. These may ultimately have a financial impact but would principally affect the services we provide in other ways. The principal non-financial risks are:

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ST DAVID'S FOUNDATION HOSPICE CARE TRUSTEES REPORT YEAR ENDED 31 MARCH 2021

The Hospice’s strategy for mitigating the impact of reputational risk is primarily to ensure appropriate clinical governance is in place to monitor and improve our service. The Hospice follows best practice for protecting vulnerable adults and others. Monitoring of staff and public health and safety is core to governance at all levels and is supported by a qualified Health and Safety Officer.

Plans are in place in the case of the loss of a senior member of staff. The Hospice has a strong senior team who would provide proficient management in the short term.

Reserves policy

The Trustees have determined that the Hospice maintains reserves:

As a mature organisation with a variety of established income streams and predictable, well-planned expenditure the Trustees consider it most appropriate for the Hospice to operate a reserves policy centred on an analysis of the potential risks to the amounts of those income streams and of the potential risks of over-expenditure. In order to quantify the reserves required, the following steps were undertaken as part of the annual budgeting process:

It is the opinion of the Trustees that the total reserves requirement need only cover a 12 month period since this would provide sufficient time to reduce expenditure or seek alternative sources of income.

The Trustees have included an additional £860,000 (2020 - £980,000) in the reserves requirement to cover expected loss of income due to the COVID-19 pandemic.

From this exercise the Trustees have determined that the Hospice requires reserves of £2,591,000 (2020 - £2,882,000). The following table compares reserves required by the policy and reserves held. In accordance with Charities SORP (FRS 102) paragraph 1.48, reserves held are considered after making allowance for

2021 2020
£000 £000
Total funds 14,435 12,715
Less restricted funds (48) (43)
Less fixed assets held in unrestricted
funds (8,632) (8,905)
Total reserves before
designation of funds		 5,755 3,767
Designated funds - -
Undesignated reserves 5,755 3,767
Reserves required by the policy 2,591 2,882
Undesignated reserves above
policy		 3,164 885

The Hospice holds £3,164,000 (2020 - £885,000) of undesignated reserves above the policy.

There remains considerable uncertainty around the length of time the COVID-19 pandemic may have an impact. Therefore it would be imprudent to consider significant utilisation of reserves held above the policy at this time.

The Trustees are mindful that the last two years have been exceptional in terms of legacy income and therefore it is appropriate that at this point undesignated reserves are in excess of the policy. It is expected that legacy income will not remain at this level in forthcoming years and will continue to be volatile.

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Plans for future periods

Our key priorities for the forthcoming year are to:

Structure, governance and management

Governing document

St David's Foundation Hospice Care is a company limited by guarantee and a registered charity governed by its Memorandum and Articles of Association.

The Hospice was incorporated on 24[th] March 1992 and its Memorandum and Articles of Association were altered by Special Resolutions passed on 9[th] January 1995, 29[th] March 2001, 26[th] May 2005 and 27[th] September 2007.

Wonderful with my first husband and wonderful again after 17 years.

A patient

Operating name

The Hospice operates under the name “St David’s Hospice Care”.

Directors and Trustees

Recruitment and appointment of Trustees

The Chair, Board and Chief Executive review the Board performance yearly through an appraisal system. During this process it is identified if there are any skills or experience gaps on the Board. If and when a vacancy becomes available the Board will look to recruit a member to the Board with the necessary knowledge and experience. Appointments are made via an application and interview process. References are obtained and and enhanced DBS check completed.

Anyone co-opted onto the Board during the year is formally elected at the AGM as set out in the Articles of Association.

Trustee induction and training

The Hospice ensures each Trustee has a comprehensive induction when appointed. Trustees are provided with various Charity Commission documents and guidelines to support them in their role. An annual appraisal system for Trustees highlights any training needs.

Organisation

The Board of Trustees are voluntary members, who meet six times per year and administer the Hospice. The following sub-groups advise the Board: Governance Committee; Retail; Clinical; safeguarding and Income Generation. The remit of the Governance Committee includes Finance, Health & Safety, the reporting of Clinical Incidents and Risk Management. Health & Safety matters are discussed by an employee Health & Safety Committee in the first instance and issues are forwarded to the Governance Committee. The Governance Committee report back to the Board of the Trustees on a bi-monthly basis.

The Trustees appoint a Chief Executive to take overall responsibility for the management of the Hospice by providing professional leadership through the development of strategic plans agreed with the Board of Trustees. The Chief Executive is supported by other members of the Senior Management Team, who prepare reports for the bi-monthly meetings of the Board of Trustees. The key management personnel comprise the Board of Trustees and the members of the Senior Management Team. The structure of the key management team is set out in the chart below.

The subsidiary company has two directors who are the Chair and Chief Executive of the Hospice.

The directors of the charitable company are its Trustees for the purpose of charity law and throughout this report are collectively referred to as the Trustees.

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ST DAVID'S FOUNDATION HOSPICE CARE TRUSTEES REPORT YEAR ENDED 31 MARCH 2021

----- Start of picture text -----
Board of Trustees
Chief Executive and
Director of Nursing
Senior Manager Senior Manager
Senior Manager Clinical
Deputy Chief Executive Director of Fundraising and Lottery Care Governance and Performance Patient Suport SerivicesFST
IPU
CNS Teams Domiciliary care
Retail
Finance Fundraising
Hospice at Home, Communiy nursing, In-Patient Unit, Education,
HR Lottery
Day Hospices and Family Support Team
Health and Safety Marketing
ICT
----- End of picture text -----

The key management personnel

Pay policy for key management personnel

The Trustees consider the key management personnel of the Hospice to be the Board of Trustees and the Senior Management Team.

All Trustees give their time freely and no trustee received remuneration in the year. Details of Trustees’ expenses and related party transactions are disclosed in notes 29 and 30 of the accounts.

The pay of the Senior Management Team is benchmarked against similar roles in the NHS or other comparable organisations. There is an emphasis on ensuring value for money for the Hospice whilst enabling the recruitment and retention of staff with appropriate skills and experience.

For the Chief Executive / Director of Nursing this exercise may be undertaken by the Chair or an external consultant. Any increases are related to performance and approved by the Board of Trustees.

For other members of the Senior Management Team, benchmarking is undertaken informally by the Chief Executive / Director of Nursing.

The remuneration paid to key management personnel is set out in note 28.

Disabled employees

The Hospice gives full consideration to applications for employment from disabled persons where the candidate’s

particular aptitudes and abilities are consistent with adequately meeting the requirements of the job. Opportunities are available to disabled employees for training, career development and promotion.

Where existing employees become disabled, it is the group’s policy to provide continuing employment wherever practicable in the same or an alternative position and to provide appropriate training to achieve this aim.

Volunteers

The Hospice benefits greatly from the support of general volunteers who contribute throughout the organisation supporting both our charitable work and our fundraising activities. Roles include assisting in charity shops, marshalling at fundraising events, volunteering on reception and in our Day Hospices.

Special acknowledgements

The Board wishes to record its appreciation for the generosity of the many supporters of St David’s for their donations and bequests and to the hundreds of volunteers who give so willingly of their time and expertise. Thanks are also expressed to the President, Vice-Presidents and Patrons who serve in an honorary capacity.

The Board also wishes to acknowledge the tremendous dedication of the clinical, fundraising, retail and administrative staff to fulfilling the objectives of the Hospice. The continued increase in the level and quality of the service is a tribute to their commitment and loyalty.

12

ST DAVID'S FOUNDATION HOSPICE CARE TRUSTEES REPORT YEAR ENDED 31 MARCH 2021

Reference and administrative details

Charity number: 1010576
Company number: 2700097
Registered Office: St David’s Hospice Care, Blackett Avenue, Newport, NP20 6NH
President: Brigadier Robert Aiken CBE, Lord Lieutenant of Gwent
Vice-Presidents: Mr I. S. Burge Mr J. Capel
Mrs G. A. Goodacre Mr W. Jenkyn-Jones
Dr R. Lurvey MBE Mr R. Noble OBE
Prof W. B. Peeling CBE Mrs P. A. White MBE
Patrons: Baron Touhig of Islwyn and Glansychan
Mr J. Over QPM, CPM, DL
Mrs S. Lloyd
Mr R. O’Shea
Mr A. Jones
Key Management Personnel: Trustees
Chair: Mr M. Davies OBE CStJ
Vice- Chair: Mr J. O. Thompson
Treasurer: Mrs M. Van de Weyer
Trustees: Dr R. C. G. Bracchi Dame R. Butler DBE
Mrs J. E. Child Mrs P. J. Davies (resigned 7 July 2020)
Mr J. L. M. Felvus Dr C. C. Gaffney
Rev E. Hills Mr M. Hine
Dr J. W. Holland
Key Management Personnel: Senior Management Team
Chief Executive: Mrs K.E. Saysell MBE
Deputy Chief Executive Mr A. Hadley
Director of Fundraising and Lottery: Mr K. Broome
Senior Manager Governance and Performance: Ms K. Hughes
Senior Manager Clinical Care: Ms S. Thomas
Senior Manager Patient Support Services: Ms G. Tanner

Advisors

Auditors: Advantage Accountancy & Advisory Ltd, Carlyle House, 5-7 Cathedral Road, Cardiff, CF11 9HA Bankers: National Westminster Bank plc, High Street, Newport, NP20 1GG Solicitors: Robert Davies Partnership LLP, Wentwood House, Langstone Business Village, Newport, NP18 2HJ Temple Bright LLP, 29 Great George Street, Bristol, BS1 5QT Investment Managers: Charles Stanley & Co. Ltd, 7/8 Park Place Cardiff CF10 3DP Brewin Dolphin, 2nd Floor, 5 Callaghan Square, Cardiff, CF10 5BT

13

ST DAVID'S FOUNDATION HOSPICE CARE TRUSTEES REPORT YEAR ENDED 31 MARCH 2021

Trustees’ responsibilities in relation to the financial statements

The Trustees (who are also directors of St David’s Foundation Hospice Care for the purposes of company law) are responsible for preparing the Trustees' report and the financial statements in accordance with applicable law and the United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and the group and of the incoming resources and application of resources, including the income and expenditure, of the charitable group for that period. In preparing these financial statements the Trustees are required to:

Statement of disclosure to our auditors

So far as the Trustees are aware, there is no relevant audit information of which the Hospice’s auditors are unaware, and they have taken all the steps that they ought to have taken as Trustees in order to make themselves aware of any relevant audit information and to establish that the Hospice’s auditors are aware of that information.

In approving this Trustees’ Report, the Trustees are also approving the Strategic Report (which comprises the three sections Achievements and performance , Financial review and Plans for future periods ) in their capacity as company directors.

Approved by the Board of Trustees on 30 September 2021.

Mrs K.E. Saysell Company Secretary Registered Office St David's Hospice Care Blackett Avenue Newport NP20 6NH

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

Internal controls over all forms of commitment and expenditure continue to be refined to improve efficiency. Processes are in place to ensure that performance is monitored and that appropriate management information is prepared and reviewed regularly by both the Senior Management Team and the Board of Trustees. The systems of internal control are designed to provide reasonable, but not absolute assurance against material misstatement or loss.

They include:

14

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ST DAVID'S FOUNDATION HOSPICE CARE

YEAR ENDED 31 MARCH 2021

Opinion

We have audited the financial statements of St David’s Foundation Hospice Care for the year ended 31 March 2021 which comprise of the Group Statement of Financial Activities, the Group and Parent Charitable Company’s Balance Sheet, the Group Statement of Cashflows and the notes to the accounts, 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 Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the accounts:

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 accounts section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the accounts 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 charitable company’s ability to continue as a going concern for a period of at least twelve months from when the original financial statements were authorised for issue.

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

Other information

The other information comprises the information included in the annual report, other than the accounts and our auditor’s report thereon. The Trustees are responsible for the other information. Our opinion on the accounts 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 accounts, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the accounts 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 accounts 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.

Opinion on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements within the Trustees' Report.

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

Responsibility of Trustees

As explained more fully in the Trustees' Responsibilities Statement [set out on page 14], the Trustees (who are also the Directors of the charitable company for the purposes of company law) are responsible for the preparation of the accounts 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 accounts that are free from material misstatement, whether due to fraud or error.

15

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ST DAVID'S FOUNDATION HOSPICE CARE YEAR ENDED 31 MARCH 2021

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

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the charitable company’s members, as a body, in accordance Chapter 3 of Part 16 of the Companies Act 2006 Act. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and its trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Stephen John Bickerton (Senior Statutory Auditor) For and on behalf of Advantage Accountancy & Advisory Ltd Chartered Certified Accountants & Statutory Auditors

Carlyle House 5-7 Cathedral Road Cardiff CF11 9HA

Date:

A further description of our responsibilities available on the Financial Reporting Council’s website at:

16

ST DAVID'S FOUNDATION HOSPICE CARE CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (Including Income & Expenditure Account) YEAR ENDED 31 MARCH 2021

----- Start of picture text -----
Unrestricted Restricted Total Unrestricted Restricted Total
funds funds funds funds funds funds
2021 2021 2021 2020 2020 2020
£000 £000 £000 £000 £000 £000
Note
Income
Donations and legacies 3 1,877 59 1,936 1,963 88 2,051
Charitable activities 4 3,529 - 3,529 2,145 - 2,145
Other trading activities 5 1,823 - 1,823 4,216 1 4,217
Investments 6 28 - 28 31 - 31
Other 7 1,721 - 1,721 507 - 507
Total Income 8,978 59 9,037 8,862 89 8,951
-
Expenditure
Raising funds 9 2,792 - 2,792 3,436 - 3,436
Charitable activities 11 4,579 48 4,627 4,873 62 4,935
Total expenditure 7,371 48 7,419 8,309 62 8,371
Net gains / (losses) on investments 15 102 - 102 (77) - (77)
Net income 1,709 11 1,720 476 27 503
Transfers between funds 22 6 (6) - 19 (19) -
Net movement in funds 1,715 5 1,720 495 8 503
Reconciliation of funds:
Total funds brought forward 22 12,672 43 12,715 12,177 35 12,212
Total funds carried forward 14,387 48 14,435 12,672 43 12,715
----- End of picture text -----

17

ST DAVID'S FOUNDATION HOSPICE CARE BALANCE SHEETS

YEAR ENDED 31 MARCH 2021

----- Start of picture text -----
Group Group Charity Charity
2021 2020 2021 2020
£000 £000 £000 £000
Note
FIXED ASSETS
Tangible assets 14 8,632 8,905 8,776 9,050
Investments 15 610 497 610 497
9,242 9,402 9,386 9,547
CURRENT ASSETS
Stock and work in progress 17 47 41 2 1
Debtors 18 2,376 1,473 2,419 1,565
Cash at bank and in hand 19 3,355 2,442 3,354 2,440
5,778 3,956 5,775 4,006
LIABILITIES
Creditors: Amounts falling due within one
year 20 525 564 523 614
NET CURRENT ASSETS 5,253 3,392 5,252 3,392
TOTAL ASSETS LESS CURRENT
LIABILITIES
14,495 12,794 14,638 12,939
Creditors: Amounts falling due after
more than one year 21 60 79 60 79
TOTAL NET ASSETS 14,435 12,715 14,578 12,860
THE FUNDS OF THE CHARITY
Restricted income funds 22 48 43 48 43
Unrestricted income funds 22 14,387 12,672 14,530 12,817
TOTAL CHARITY FUNDS 14,435 12,715 14,578 12,860
----- End of picture text -----

Signed and authorised for issue on behalf of the Board of Trustees

Mr M Davies OBE CStJ

Approved and authorised for issue by the Board on 30 September 2021.

18

ST DAVID'S FOUNDATION HOSPICE CARE CONSOLIDATED STATEMENT OF CASH FLOWS

YEAR ENDED 31 MARCH 2021

2021 2020
Note £000 £000
Cash flows from operating activities
Net cash provided by operating activities A 961 320
Cash flows from investing activities
Dividends, interest and rents from investments 28 31
Purchase of property, plant and equipment (43) (231)
Purchase of investments (11) (260)
Net cash used in investing activities (26) (460)
Cash flows from financing activities
Repayment of finance leases (18) (22)
Finance lease interest paid (4) (7)
Cash inflows from new finance lease - 113
Net cash used in financing activities (22) 84
Change in cash and cash equivalents in the
reporting period		 913 (56)
Cash and cash equivalents at the beginning of the
reporting period 2,442 2,498
Cash and cash equivalents at the end of the
reporting period		 B 3,355 2,442

NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT

A Reconciliation of net income to net cash flow from operating activities

2021 2020
£000 £000
Net income for the reporting period
(as per the Statement of Financial Activities) 1,720 503
Adjustments for:
Depreciation charges 316 298
(Gains)/losses on investments (102) 77
Dividends, interest and rents from investments (28) (31)
Interest payable 4 7
Profit on the disposal of fixed assets - 6
Increase in stocks (6) (7)
(Increase) in debtors (903) (473)
(Decrease) in creditors (40) (60)
Net cash provided by operating activities 961 320

19

ST DAVID'S FOUNDATION HOSPICE CARE CONSOLIDATED STATEMENT OF CASH FLOWS

YEAR ENDED 31 MARCH 2021

B Analysis of cash and cash equivalents

----- Start of picture text -----
2021 2020
£000 £000
Cash in hand 1,353 942
Notice deposits (less than 3 months) 2,002 1,500
Total cash and cash equivalents 3,355 2,442
----- End of picture text -----

20

ST DAVID'S FOUNDATION HOSPICE CARE NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2021

1. Accounting policies

Basis of Accounts Preparation

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019) - (Charities SORP (FRS 102) – second edition), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

The Hospice meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s).

All financial information is rounded to the nearest £1000 except for the Trustees’ expenses set out in note 29 and the subsidiary undertaking table in note 15.

Group financial statements

The financial statements consolidate the results of the Hospice and its wholly owned subsidiary St David’s Trading Limited on a line by line basis. A separate Statement of financial activities and income and expenditure account for the Hospice has not been presented because the Hospice has taken advantage of the exemption afforded by section 408 of the Companies Act 2006.

Income

Income arises when an event (such as a financial transaction) results in either an increase in the Hospice’s assets or a reduction in its liabilities. Income is recognised by the Hospice when all of the following criteria are met:

Legacies

Entitlement to legacy income is deemed to occur when either the Hospice is aware probate has been granted, the estate has been finalised and the Hospice has been notified by the executor that a distribution will be made or when a distribution is received from the estate if that is earlier.

Where legacies have been notified to the Hospice or the Hospice is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is treated as a contingent asset. This most commonly occurs when the Hospice has been notified of residuary legacy but it is unable to reliably measure the amount of the income.

Grants

Grants are recognised when the Hospice has entitlement to the funds. This includes grants received for the purpose of purchasing fixed assets. When a grant cannot be claimed until certain expenditure has been defrayed entitlement is not deemed to have passed to the Hospice until the expenditure has been so defrayed.

Fundraising events

Fundraising income from the sale of entry fees for events is included in income when received even if this is before the event. The likelihood of cancellation of the event is remote so it is more likely than not that the economic benefit will flow to the Hospice.

Donations that are closely associated with fundraising events such as sponsorship of event participants by their friends and family are included in fundraising within other trading activities.

Retail

The Hospice receives a high volume of donations of low value second hand goods for resale in its network of charity shops. The Trustees consider it would be impracticable to recognise the income when the Hospice becomes entitled to the economic benefit of the donated goods since the cost of doing so would outweigh the benefits. Therefore in accordance with FRS102 paragraph 34B.4 the income is recognised in the period in which the donated goods are sold.

The Hospice operates a retail gift aid scheme. Under the scheme the legal form of the transaction is that the Hospice operates as an agent on behalf of the donor. Once the goods have been sold on behalf of the donor, the donor offers to donate the proceeds of the sale to the Hospice. This allows the Hospice to claim gift aid on the cash donation. However the substance of the transaction is such that the donor is donating the goods to the Hospice and is therefore treated as such.

21

ST DAVID'S FOUNDATION HOSPICE CARE NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2021

Lottery

Lottery tickets sold in advance are deferred and included in the period in which the draw takes place.

Expenditure

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably.

Irrecoverable VAT

The Hospice suffers from irrecoverable VAT due to the fact that it makes exempt supplies and therefore not all input VAT is recoverable. This is written off to the Statement of Financial Activities in the period in which it arises. Under sections 33C and 33D of the VAT Act 1994 the Hospice can recover the VAT on its non-business transactions.

Support costs

Support costs are those costs that whilst necessary to deliver an activity, do not themselves produce or constitute the output of the charitable activity. These costs include Governance, Finance, Human resources, ICT and Health and Safety as well as corporate costs including the costs of employing the Chief Executive, financing costs, insurance and legal and professional fees.

Where these costs are directly attributable to specific activities they have been included in those cost categories. Where these costs are attributable to more than one activity they are apportioned across cost categories on the basis of direct staff hours. The Trustees consider this to be the most equitable method of splitting expenditure attributable to more than one activity.

Pensions

Details of the pension schemes including the accounting policies adopted can be found in note 26.

Termination payments

Termination payments are payable when employment is terminated by the Hospice before the normal retirement date or end of employment contract. Termination payments are recognised when the Hospice can no longer withdraw the offer of the benefits.

Fixed assets

Intangible fixed assets

Negative goodwill arising from business acquisitions is capitalised and amortised over 2 years.

Tangible fixed assets

Tangible fixed assets are recorded at cost, or in cases where fixed assets have been donated to the Hospice, at valuation at time of acquisition. Fixed assets with an initial cost of less than £1,000 are not capitalised but are included in full in expenditure in the year of acquisition. Depreciation is charged to write off the cost of fixed assets over their estimated useful lives at the following annual rates:

Freehold buildings 2% Straight Line Leasehold buildings Life of Lease Straight Line (current leasehold buildings have a 99 year lease) Fixtures, fittings and equipment 20% Straight Line Computer equipment 33% Straight Line Motor vehicles 20% Straight Line Computer equipment is included within fixtures, fittings and equipment in note 14.

Investments

Investment properties

Investment properties are included in the balance sheet at fair value. The Hospice arranges a full professional valuation by an independent valuer every five years. In the intervening years the Hospice management obtain advice from an independent valuer to ensure the asset is held at fair value. The next full professional independent five year valuation will be at 31 March 2023.

Listed investments

Listed investments held are shown at fair value which is their market value.

22

ST DAVID'S FOUNDATION HOSPICE CARE NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2021

Stock

Stock consists of purchased goods for resale. Stocks are valued at the lower of cost and net realisable value. Donations of low value second hand goods that remain unsold at the balance sheet date are not included in stock since they are recognised when sold as set out above.

Funds structure

The Hospice's funds are split into restricted funds and unrestricted funds.

Restricted funds

These are funds that can only be used for a particular restricted purposes within the objects of the Hospice.

Restrictions arise when they are specified by the donor or when funds are raised for particular restricted purposes.

Unrestricted funds

These funds are available for the general purposes of the Hospice, to be used in accordance with the charitable objects at the discretion of the Trustees. From time to time the Trustees may allocate part of the unrestricted funds to be used for particular purposes within the Hospice’s objects. Such sums are described as ‘designated funds’.

2. Auditor’s remuneration

The net income for the year is stated after charging:

----- Start of picture text -----
Unrestricted Restricted Total Unrestricted Restricted Total
funds funds funds funds funds funds
2021 2021 2021 2020 2020 2020
£000 £000 £000 £000 £000 £000
Statutory audit fees 8 - 8 7 - 7
Other services - - - 1 - 1
----- End of picture text -----

3. Donations and legacies

----- Start of picture text -----
Unrestricted Restricted Total Unrestricted Restricted Total
funds funds funds funds funds funds
2021 2021 2021 2020 2020 2020
£000 £000 £000 £000 £000 £000
Legacies 718 - 718 972 - 972
In memory 353 2 355 348 3 351
Individuals 600 1 601 310 - 310
Corporate, clubs and societies 16 - 16 48 4 52
Trusts and foundations 65 56 121 37 68 105
Community fundaising 102 - 102 223 13 236
Welsh Government 23 - 23 25 - 25
1,877 59 1,936 1,963 88 2,051
----- End of picture text -----

23

ST DAVID'S FOUNDATION HOSPICE CARE NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2021

4. Income from charitable activities

----- Start of picture text -----
Unrestricted Restricted Total Unrestricted Restricted Total
funds funds funds funds funds funds
2021 2021 2021 2020 2020 2020
£000 £000 £000 £000 £000 £000
-
Service level agreements 1,770 1,770 1,719 1,719
- - - -
Covid-19 emergency funding 1,288 1,288
Continuing health care 436 - 436 368 368
Other charitable activities 35 - 35 58 58
3,529 - 3,529 2,145 - 2,145
----- End of picture text -----

5. Income from other trading activities

----- Start of picture text -----
Unrestricted Restricted Total Unrestricted Restricted Total
funds funds funds funds funds funds
2021 2021 2021 2020 2020 2020
£000 £000 £000 £000 £000 £000
- -
Retail trading 1,374 1,374 3,400 3,400
Fundraising 113 - 113 436 1 437
Lottery 336 - 336 380 - 380
1,823 - 1,823 4,216 1 4,217
----- End of picture text -----

6. Income from investments

----- Start of picture text -----
Unrestricted Restricted Total Unrestricted Restricted Total
funds funds funds funds funds funds
2021 2021 2021 2020 2020 2020
£000 £000 £000 £000 £000 £000
Interest received 13 - 13 17 - 17
Rent from investment property 4 - 4 4 - 4
Dividend income 11 - 11 10 - 10
28 - 28 31 - 31
----- End of picture text -----

7. Other income

Unrestricted Restricted
Total		 Unrestricted Restricted
Total
funds funds funds funds funds funds
2021 2021 2021 2020 2020 2020
£000 £000 £000 £000 £000 £000
Job Retention Scheme 648 - 648 30 - 30
Retail Business grants 597 - 597 475 - 475
Insurance Claim 470 - 470 - - -
Other 6 - 6 2 - 2
1,721 - 1,721 507 - 507

24

ST DAVID'S FOUNDATION HOSPICE CARE NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2021

8. Support costs

The Hospice allocates its support costs as shown in the table below in accordance with the basis of allocation set out in the accounting policies.

Health and
Governance Corporate Finance HR Safety ICT Total
£000 £000 £000 £000 £000 £000 £000
Raising funds
Retail trading 17 64 43 26 15 12 177
Fundraising 2 6 4 2 1 1 16
Lottery 1 3 2 1 1 - 8
Investment management - - - - - - -
Charitable activities
Community Nursing 6 21 14 8 5 3 57
Hospice At Home 9 34 23 13 8 5 92
Day Hospice 2 6 4 3 2 1 18
In-Patient Unit 8 29 20 11 7 5 80
Education - 1 1 - - - 2
Family Support Team 2 7 5 3 2 1 20
Complementary Therapy - 1 1 1 - - 3
Clinical Governance - - - - - - -
Chaplaincy - 1 1 - - - 2
Occupational Therapy - - - - - - -
47 173 118 68 41 28 475

9. Expenditure on raising funds by cost type

----- Start of picture text -----
Direct Support Total Direct Support Total
costs costs costs costs costs costs
2021 2021 2021 2020 2020 2020
£000 £000 £000 £000 £000 £000
Retail trading 2,109 177 2,286 2,504 183 2,687
Fundraising 271 16 287 488 20 508
Lottery 208 8 216 227 8 235
Investment management 3 - 3 6 - 6
2,591 201 2,792 3,225 211 3,436
----- End of picture text -----

10. Expenditure on raising funds by fund

Unrestricted Restricted
Total		 Unrestricted Restricted
Total
funds funds costs funds funds costs
2021 2021 2021 2020 2020 2020
£000 £000 £000 £000 £000 £000
Retail trading 2,286 - 2,286 2,687 - 2,687
Fundraising 287 - 287 508 - 508
Lottery 216 - 216 235 - 235
Investment management 3 - 3 6 - 6
2,792 - 2,792 3,436 - 3,436

25

ST DAVID'S FOUNDATION HOSPICE CARE NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2021

11. Expenditure on charitable activities by cost type

----- Start of picture text -----
Direct Support Total Direct Support Total
costs costs costs costs costs costs
2021 2021 2021 2020 2020 2020
£000 £000 £000 £000 £000 £000
Community Nursing 1,007 57 1,064 1,089 58 1,147
Hospice At Home 1,200 92 1,292 1,176 88 1,264
Day Hospice 305 18 323 443 23 466
In-Patient Unit 1,437 80 1,517 1,518 84 1,602
Education 71 2 73 75 2 77
Family Support Team 221 20 241 237 18 255
Complementary Therapy 35 3 38 50 4 54
Clinical Governance 18 - 18 17 - 17
Chaplaincy 39 2 41 33 2 35
Occupational Therapy 20 - 20 18 - 18
4,353 274 4,627 4,656 279 4,935
----- End of picture text -----

12. Expenditure on charitable activities by fund

----- Start of picture text -----
Unrestricted Restricted Total Unrestricted Restricted Total
funds funds costs funds funds costs
2021 2021 2021 2020 2020 2020
£000 £000 £000 £000 £000 £000
- -
Community Nursing 1,064 1,064 1,147 1,147
Hospice At Home 1,287 5 1,292 1,260 4 1,264
Day Hospice 322 1 323 442 24 466
In-Patient Unit 1,513 4 1,517 1,602 - 1,602
Education 73 - 73 77 - 77
Family Support Team 203 38 241 221 34 255
Complementary Therapy 38 - 38 54 - 54
Clinical Governance 18 - 18 17 - 17
Chaplaincy 41 - 41 35 - 35
Occupational Therapy 20 - 20 18 - 18
4,579 48 4,627 4,873 62 4,935
----- End of picture text -----

26

ST DAVID'S FOUNDATION HOSPICE CARE NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2021

13. Intangible fixed assets

----- Start of picture text -----
Negative
goodwill
£000
Asset cost
Brought forward (278)
Additions -
Carried forward (278)
Accumulated amortisation
Brought forward (278)
Carried forward (278)
Net book value
Carried forward -
-
Brought forward
----- End of picture text -----

Negative goodwill arose following the acquisition of St Anne’s In-Patient Unit in June 2013.

14. Tangible fixed assets

Group

Freehold Leasehold Fixtures,
land and land and Motor fittings and
buildings buildings vehicles equipment Total
£000 £000 £000 £000 £000
Asset cost
Brought forward 225 8,635 213 1,829 10,902
Additions - - 17 38 55
Disposals - (12) (22) - (34)
Carried forward 225 8,623 208 1,867 10,923
Accumulated depreciation
Brought forward 41 443 167 1,346 1,997
Disposals - - (22) - (22)
Charge for the year 4 90 21 201 316
Carried forward 45 533 166 1,547 2,291
Net book value
Carried forward 180 8,090 42 320 8,632
Brought forward 184 8,192 46 483 8,905

27

ST DAVID'S FOUNDATION HOSPICE CARE NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2021

Company

Freehold Leasehold Fixtures,
land and land and Motor fittings and
buildings buildings vehicles equipment Total
£000 £000 £000 £000 £000
Asset cost
Brought forward 225 8,788 213 1,829 11,055
Additions - - 17 38 55
Disposals - (12) (22) - (34)
Carried forward 225 8,776 208 1,867 11,076
Accumulated depreciation
Brought forward 41 451 167 1346 2,005
Disposals - - (22) - (22)
Charge for the year 4 91 21 201 317
Carried forward 45 542 166 1,547 2,300
Net book value
Carried forward 180 8,234 42 320 8,776
Brought forward 184 8,337 46 483 9,050

The fixed assets of the Hospice includes £59,000 (2020 - £60,000) under Leasehold land and buildings which relate to depreciated, capitalised cost of services provided to the Hospice by its subsidiary for the construction of the Blackett Avenue site. In the year depreciation of £1,000 (2019 - £1,000) has been charged against this asset.

The fixed assets of the Hospice also includes £84,000 (2020 - £85,000) under Leasehold land and buildings which relate to capitalised cost of services provided to the Hospice by its subsidiary for the construction of the In-Patient Unit. In the year depreciation of £1,000 (2019 - £1,000) has been charged against this asset.

Included in Fixtures, fittings and equipment are assets that were acquired under finance leases with a net book value of £74,000 (2020 - £97,000).

15. Investments

Group and company

Property Listed Total
£000 £000 £000
Fair value brought forward 65 432 497
Additions - 11 11
Gains / (Losses) - 102 102
Fair value carried forward 65 545 610

The Hospice’s Investment Property was revalued to £65,000 at 31 March 2018. The valuation was undertaken by independent RICS Registered Valuers, Linnells Property Consultants. Linnells Property Consultants have confirmed that there has been no significant change in the market value of the property and £65,000 reflects fair value at 31 March 2021.

Listed investments comprise two investment portfolios managed by two independent investment managers and listed investments held outside the investment portfolios. Cash held from time to time within the investment portfolios as part of normal trading within the portfolios is included in listed investments. The asset classes held in listed investments at 31 March 2021 are shown below:

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ST DAVID'S FOUNDATION HOSPICE CARE NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2021

----- Start of picture text -----
2021 2020
Portfolio 1 Portfolio 2 Other listed
£000 £000
Fixed income - UK 12 21 - 33 31
Fixed income - International 22 18 - 40 24
Equity - UK 75 - - 75 48
Equity - International - - 1 1 1
Equity funds - UK - 72 - 72 78
Equity funds - International 98 131 - 229 150
Property funds 17 6 - 23 15
Absolute return funds 6 14 - 20 23
Infrastructure funds 12 8 - 20 16
Alternative structured investments 6 - - 6 4
Mixed investment 9 - - 9 8
Cash 10 7 - 17 34
Total investment 267 277 1 545 432
----- End of picture text -----

The Hospice owns the entire ordinary share capital in its subsidiary undertaking St David’s Trading Limited (company number 05734138). This unlisted investment cannot be measured reliably at fair value so has been measured at cost.

Subsidiary
undertaking
£
Group
Cost brought forward and carried forward -
Charity
Cost brought forward and carried forward 1

16. Subsidiary company

St David’s Trading Limited, the Hospice’s wholly owned subsidiary undertakes two core activities: the sale of new, bought in goods within the Hospice’s network of charity shops and the development of a new In-Patient Unit. The development of the new In-Patient Unit is now complete. Profits in St David’s Trading Limited are remitted to the Hospice by way of a gift aid payment. At 31 March 2021 St David’s Trading Limited had assets of £46,000 (2020 - £109,000) and liabilities of £46,000 (2020 - £109,000). Its funds at the end of the reporting period were therefore £nil (2020 - £nil). The turnover during the year was £71,000 (2020 – £199,000) and expenditure was £71,000 (2020 - £199,000).

17. Stock

----- Start of picture text -----
Group Group Charity Charity
2021 2020 2021 2020
£000 £000 £000 £000
Stock 47 41 2 1
47 41 2 1
----- End of picture text -----

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ST DAVID'S FOUNDATION HOSPICE CARE NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2021

18. Debtors

----- Start of picture text -----
Group Group Charity Charity
2021 2020 2021 2020
£000 £000 £000 £000
Trade debtors 873 399 873 399
Amounts owed by group undertakings - - 6 -
Prepayments and accrued income 1,448 999 1,486 1,091
Other debtors 55 75 54 75
2,376 1,473 2,419 1,565
----- End of picture text -----

19. Cash at bank and in hand

----- Start of picture text -----
Group Group Charity Charity
2021 2020 2021 2020
£000 £000 £000 £000
Cash and bank balances 1,353 942 1,352 940
Cash on short term deposit 2,002 1,500 2,002 1,500
3,355 2,442 3,354 2,440
----- End of picture text -----

20. Creditors: Amounts falling due within one year

----- Start of picture text -----
Group Group Charity Charity
2021 2020 2021 2020
£000 £000 £000 £000
Trade creditors 77 87 77 87
Amounts owed to group undertakings - - - 56
Accruals and deferred income 297 304 295 302
Taxation and social security 84 93 84 93
Obligations under finance leases 19 18 19 18
Pension liability 43 46 43 46
Other creditors 5 16 5 12
525 564 523 614
----- End of picture text -----

21. Creditors: Amounts falling due after one year

----- Start of picture text -----
Group Group Charity Charity
2021 2020 2021 2020
£000 £000 £000 £000
Obligations under finance leases 60 79 60 79
60 79 60 79
----- End of picture text -----

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ST DAVID'S FOUNDATION HOSPICE CARE NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2021

22. Movement in funds

----- Start of picture text -----
Balance at Balance at
1 April Gains and 31 March
2020 Income Expenditure losses Transfers 2021
£000 £000 £000 £000 £000 £000
UNRESTRICTED FUNDS
General fund 12,672 8,978 (7,371) 102 6 14,387
Total unrestricted funds 12,672 8,978 (7,371) 102 6 14,387
RESTRICTED FUNDS
Blackett Avenue Day Hospice
General - 1 (1) - - -
Children in Need 2019 10 28 (34) - - 4
Hoist 1 - - - - 1
Hospice at Home (Monmouthshire) 2 3 (5) - - -
In-patient unit general - 1 (1) - - -
IPU Family refreshments 1 - - - - 1
IPU new build 1 - - - (1) -
Panteg garden furniture 1 - - - - 1
Patient vehicle 2 - - - (2) -
Refurbishment of Day Hospice 7 - - - - 7
Scrubs for CNSs - 3 (3) - - -
Social worker fund 2 - - - - 2
Spiritual Room Furniture - 3 - - (3) -
Trevor Gray Education Centre 9 - - - - 9
Unicorn Project 2 - - - - 2
Welfare Rights Advisor salary - 19 (3) - - 16
Other restricted funds 5 1 (1) - - 5
Total restricted funds 43 59 (48) - (6) 48
Total funds 12,715 9,037 (7,419) 102 - 14,435
----- End of picture text -----

During the year the balance of certain restricted funds were transferred to unrestricted funds. The original use of these funds was restricted to the purchase of fixed assets. Since the assets are held for a general and not a restricted purpose the balance has been transferred to unrestricted funds in accordance with Charities SORP (FRS 102) paragraph 2.26.

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ST DAVID'S FOUNDATION HOSPICE CARE NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2021

Name of Fund Description, nature andpurpose of the fund
Unrestricted funds
General fund The undesignated unrestricted funds of the Hospice.
Restricted funds
Blackett Avenue Day Hospice General Funded from various sources to support our work in the Blackett Avenue Day
Hospice.
Children in Need 2019 Funded by BBC Children in Need to fund our Unicorn Project, our Children and
young people’s service.
Hoist Provided by Welsh Church Fund to fund a hoist.
Hospice at Home (Monmouthshire) Funded by the Deymel Charitable Trust and Rathbones to support our Hospice at
Home work in Monmouthshire.
In-patient unit general Funded from various sources to support our work in the In-patient Unit.
IPU Family refreshments Support from a private donation to provide refreshments for relatives visiting
patients in our IPU.
IPU new build Funded from various sources to support the costs of the new IPU.
Panteg garden furniture To fund the re-development of the garden at Panteg.
Patient vehicle Provided by Caldicot Methodist Church and MonMotors Limited to purchase a
vehicle for transporting patients.
Refurbishment of Day Hospice Provided by Plutus Health to fund the refurbishment of our Day Hospice.
Scrubs for CNSs Provided by Gwent Association of Voluntary Organisations and Torfaen Voluntary
Alliance to provide additional scrubs for Clinical Nurse Specialists.
Social worker fund This fund received from various sources is used to support patients who are facing
financial hardship.
Spiritual Room Furniture Provided by E Lewis for furniture for the Spiritual Room.
Trevor Gray Education Centre Provided to fund an e-learning suite and staff training.
Unicorn Project Fund to support the Unicorn project. Provided by various funders.

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ST DAVID'S FOUNDATION HOSPICE CARE NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2021

Name of Fund Description, nature andpurpose of the fund
Welfare Rights Advisor salary Provided by the Moondance Foundation towards the salary of A Welfare Rights
Advisor.
Other restricted funds Other restricted funds with balances less than £500.

23. Analysis of group net assets between funds

Tangible Other net
Investments fixed assets assets Total
£000 £000 £000 £000
Restricted income funds - - 48 48
Unrestricted income funds 610 8,632 5,145 14,387
610 8,632 5,193 14,435

24. Commitments

The group and company’s future minimum operating and finance lease payments are as follows:

Finance leases Operating leases
2021 2020 2021 2020
£000 £000 £000 £000
Not later than one year 22 22 456 460
later than one year but not later than five years 64 86 706 834
later than five years - - - 4
86 108 1,162 1,298

The net book value of fixed assets held under finance lease are given in note 14.

25. Staff costs

Total Total
2021 2020
£000 £000
Wages and salaries 4,585 4,760
Social security costs 363 370
Pension costs 313 323
5,261 5,453

Included in Wages and salaries are termination payments of £18,000 (2020 – £6,000).

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ST DAVID'S FOUNDATION HOSPICE CARE NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2021

The number of employees, whose total employee benefits (excluding employer pension costs) for the reporting period, fell within each banding of £10,000 from £60,000 were as follows:

----- Start of picture text -----
2021 2020
£60,001 - £70,000 1 1
- -
£70,001 - £80,000
- -
£80,001 - £90,000
- -
£90,001 - £100,000
£100,001 - £110,000 1 1
----- End of picture text -----

26. Pensions

The Hospice contributed to two pension schemes in the financial year: the Royal London scheme and the NHS pension scheme.

Royal London scheme

The Hospice operates a defined contribution pension scheme for its employees, where all the assets are held in a separately administered fund, which is outside the control of the Hospice. At the year-end there were 155 (2020 – 167) employees who were members of the scheme. Employer contributions charged against income in the year were £127,000 (2020 - £131,000). Outstanding contributions (both employer and employee) at the balance sheet date were £17,000 (2020 - £19,000).

Employees who are enrolled into a pension under “automatic enrolment” are enrolled into this scheme.

NHS scheme

Staff transferring from the NHS may continue to contribute to the NHS scheme. The scheme is a multi-employer, unfunded defined benefit scheme but the Hospice is unable to identify its share of the underlying assets and liabilities of the Plan on a consistent and reasonable basis and therefore, as permitted by FRS 102 para 28.11, it accounts for the Plan as if it were a defined contribution scheme. As a result, the amount charged to the income and expenditure account represents the Hospice’s contributions payable to the Plan in respect of the accounting period. The employee contribution percentage rates under this scheme vary depending on pensionable earnings. At the year end there were 39 (2020 - 41) who were members of the scheme. Employer contributions charged against income in the year were £186,000 (2020 - £191,000). Outstanding contributions (both employer and employee) at the balance sheet date were £26,000 (2020 - £27,000).

27. Staff numbers

The average number of staff employed by the Hospice during the year was 258 (2020 – 252). Some of the Hospice’s employees do not undertake work every month. The average number of staff paid each month was 235 (2020 - 242).

28. Key management personnel

The key management personnel comprise the Trustees and the Senior Management Team as set out on page 13. None of the Trustees were paid any remuneration or received any other benefits from an employment with the Hospice or its subsidiary. Trustees’ expenses are set out in note 29. The total employee benefits paid to the key management personnel was £370,000 (2020 - £382,000).

29. Trustees’ expenses

No Trustee claimed expenses in the previous two years.

30. Related party transactions

There were no related party transactions in the previous two years.

31. Non adjusting events after the financial period

Both during and after the year-end the worldwide economy has been affected by the COVID-19 virus outbreak and resulting lockdowns. This has affected the ability of the organisation to trade freely, particularly within our network of charity shops. However, the charity has managed the impact of the pandemic and has also received support from local and national governments. The Trustees believe that at the date of signing the financial statements, the Hospice had adequate cash reserves to meet its liabilities as when they fall due. Therefore, it is considered appropriate to prepare the financial statements on a going concern basis.

34

ST DAVID'S FOUNDATION HOSPICE CARE YEAR ENDED 31 MARCH 2021

NOTES TO THE FINANCIAL STATEMENTS

32. Legal status of the Hospice

St David's Foundation Hospice Care is a company limited by guarantee, not having a share capital, exempt from the requirement to use the word "limited" and is a registered charity. The liability of each member in the event of a winding-up is limited to £1.

33. Taxation

The company has obtained charitable status under Section 505(1a) and (1c) Income and Corporation Taxes Act 1988 and has only undertaken primary purpose activities during the year and is therefore exempt from Corporation Tax.

35