2022-03-31-accounts

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2022 Trustees’ Annual Report

YEAR ENDED 31 MARCH 2022

For Excellence. For Compassion. For People. For Living.

Princess Alice Hospice makes a difference

It costs us £10 million each year to provide free, high-quality care.

Funding provided by CCGs (Clinical Commissioning Groups) represents circa 24% of our expenditure on charitable activities. In more normal times the balance is raised through legacies, fundraising, dedicated shop units, investments and the generous support of our communities. It is only the support of our community and beyond, that makes it possible to do our work.

In the year under report, the Hospice has also received additional support through NHS emergency capacity funding grants via Hospice UK, Government grants to support nonessential retail and the Coronavirus Job Retention Scheme (CJRS). It is only as a result of this support that we were able to maintain our services and help to alleviate the pressure on our NHS colleagues throughout the pandemic.

We have once again been rated by the Care Quality Commission as providing outstanding palliative and end of life care in the community and within our Hospice. Our teams of employees, volunteers and supporters are positive, passionate and professional.

No one can prevent death, but we do everything we can to make dying as good as possible for patients, their families and friends. We believe that hospice care is for living.

Our Vision

Our communities will have the best care and support before, during and after death.

Our Mission

We will develop hospice ways of working so that we can best deliver services that place people at the centre of everything we do.

Chair and CEO report ..................................................................................................................... 2 How we improved our care and support in 2021/22 ........................................................................ 4 Objectives for 2022/23 .................................................................................................................... 6 Structure, governance and management ........................................................................................ 9 Fundraising Regulation ................................................................................................................. 22 Principal risks and uncertainties .................................................................................................... 23 Independent auditor’s report to the members of Princess Alice Hospice ....................................... 25 Financial Statements .....................................................................................................................29 Who’s who at Princess Alice Hospice ........................................................................................... 47 Special thanks to ……................................................................................................................... 50

Chair and CEO report

The year under report has seen us transition from responding to COVID-19 as an all-consuming pandemic to operating with it as a near-constant backdrop. In practice this meant that we relaxed restrictions when it was safe to do so, re-instating them when the environment changed. We built on the innovations implemented across the organisation during the worst of the pandemic and embedded them into operating and service models where there was clear benefit in doing so. The acceleration in the pace of digital transformation across the organisation was maintained and provides an excellent foundation for the coming years.

All organisations providing health and social care have faced unprecedented challenges over the past two years and it has never been more important to work in collaboration and partnership. Nationally, the move towards Integrated Care systems (ICS), Integrated Care Boards (ICB) and Partnerships has resulted in both opportunities and threats for smaller specialist providers such as hospices.

Princess Alice Hospice operates in a care area that is part of two emerging Boards; Surrey Heartlands and South West London. Members of the Senior Leadership Team (SLT) continue to invest time and resource in ensuring that Palliative and End of Life Care (PEoLC) receives the focus it deserves. This included supporting the development of a PEoLC Strategy in Surrey Heartlands and taking on the role of Senior Responsible Officer for End of Life Care (EoLC) in Surrey Downs Health and Care Partnership. Moves towards greater integration have also prompted much closer working between hospices operating in the same ICB. We are hopeful that this will result in a more equitable and sustainable approach to NHS funding and investment in hospice care, so that in turn we are better able to support our health and social care partners and, more importantly, deliver the high-quality care and support that our community deserves.

We made changes and adaptations to our services to respond to changing needs and system pressures and sought to implement them in a way that did not impact on quality. We were delighted to have that validated when we retained our overall rating of Outstanding by the Care Quality Commission (CQC) following their inspection in late 2021. The inspectors commended us for our promotion of inclusivity and equality and the tangible sense of flexibility and adaptability amongst staff to meet people’s needs. It is only possible to achieve an Outstanding rating when every member of staff, every volunteer, every team and every department works together. We are extremely proud of them all and very pleased that their energy, compassion and commitment has been recognised in the rating.

Further acknowledgement of the quality and commitment of our staff came in the form of a visit last November by Ruth May, Chief Nursing Officer for England. She presented two of our senior InPatient Unit nurses with a prestigious Chief Nursing Officer Silver Award for their services in providing exceptional care to patients at the end of life – a very special moment.

This year represented the last year of our five-year strategy, so in addition to delivering “business as usual” and focusing on the objectives set for 2021/22, the Board and SLT formed a Strategic Development Group (SDG) and spent a large part of the year developing the new strategy for the organisation. Launched in April “A strategy for our future” sets out four over-arching priorities that will underpin, sustain and develop our vital work, now and in the future. The priorities and focus for the first two years are described in more detail on page 6.

We are first and foremost a people organisation and as the SDG developed its thinking it became clear that we needed to develop a People Plan to support the implementation of the strategy. Structured against five themes; growing our culture, resourcing for the future, developing skills and capabilities, supporting engagement and wellbeing and building leadership and management, the plan builds on the previous Talent and People Strategy and sits alongside the Inclusion strategy approved by the Board in September. The overall aim is that we will be a “values-led and inclusive organisation, with flexible, skilled and engaged people capable of delivering our mission”. Effective

implementation of the plan will be crucial if we are to recruit and retain the people we will need to deliver organisational success.

We said goodbye to some long-standing colleagues and friends on the Board and within SLT during the year and welcomed new ones. Professor Fiona Ross CBE stood down having completed her five-year tenure as Chair and ten years as a Trustee and we said goodbye to Christopher Roshier who had also completed his ten-year term as a Trustee – both remain loyal and committed supporters of the Hospice. We welcomed Monica Harding, Tim Hewens and Darren Webb as new trustees and two additional committee advisers who generously share their knowledge and skills to help us move projects and programmes forward. Two new colleagues joined the SLT; Dr Jennifer Todd took over as Medical Director from Dr Craig Gannon who had been with us for 26 years and Lesley Munro replaced Lesley Spencer as Director of Patient Care, Community Engagement and Support. They have been welcome additions to an already high performing SLT.

Princess Alice Hospice holds a special place in our local community. It is only through the extraordinary generosity of all our supporters and volunteers – donating time, money and resources – that we are able to deliver against our strategic objectives and plan for the future. We are grateful to every one of them.

We feel very privileged to be the Chair and Chief Executive of such a vibrant and innovative organisation, and we look forward to what’s in store in 2022/23. Throughout, our dedicated and passionate people will provide and facilitate excellent care and support for every person who touches our services.

Chair Chief Executive

Strategic Report

How we improved our care and support in 2021/22

GOAL 1 We will be recognised for the outstanding care we provide

We will use our specialist expertise to develop wide-ranging approaches to palliative and end of life care and support to help more people live life to the full, and when the time comes, to have a good death .

The COVID-19 pandemic continued to impact some aspects of our service delivery during 2021/22, however the experience and learning that we gained from the previous year meant that we were better placed to respond and adapt as restrictions were imposed, removed and, often, reinstated. We are particularly proud of the fact that we maintained compassionate visiting throughout the pandemic and were delighted to be able to remove the remaining restrictions in February of this year.

Our health and social care partners continued to experience unprecedented demand and we worked hard to support them by being flexible and responsive – adapting our services as necessary. We provided care and support to 3,200 patients, enabling more than 71% of them to be cared for and to die at home.

As well as delivering our core services, clinical colleagues set themselves some challenging objectives for the year. They wanted to build on the learning from the previous year, particularly how best to integrate digital services within our core offer and maximise the value from our move to EMIS – the electronic patient record system used by most GP colleagues within our care area.

Achievements include:

Continuing to explore and embrace digital innovations to modernise and improve services and offer support in ways that respond to patient and family preferences. This has included:
Establishing digital sharing agreements with GP practices in our care area so that patient records can be shared, leading to improved communication between us and Primary Care, and a more joined up response to the needs of patients.
Utilising Zoom to deliver Wellbeing sessions offering a wider range of sessions, doctor Q&As, peer support and therapeutic interventions – there were nearly 4,200 attendances during 2021/22.
Enabling patients and families to use a mix of digital and physical tools to provide feedback and influence the development of future services.
Working more closely with frailty consultants to support Advance Care Planning and discharge from acute trusts to both home and care home settings.
Establishing a referral pathway from GPs and Social Prescribers into the Wellbeing service so that more people can benefit from the service.
Re-establishing out-patient clinics in four sites across the care area with a fifth due to come on board in 2022/23.
Refreshing the IPU by decorating throughout and installing new lighting, flooring, patient call system and soft furnishings, incorporating design features that are dementia friendly.

We had set ourselves the objective to develop a strategic response to diversity and inclusion across our care and support services ahead of the launch of the new strategy in April 2022. We have taken opportunities to work with partners who are supporting people who have not traditionally had access to hospice care and have taken a blended approach of providing direct support, together with education and training, with the aim of improving the end of life experience for these groups. Establishing a strategic response has progressed more slowly. Its importance, however, was emphasised throughout the strategy development process and the Board of Trustees has allocated funding to support the delivery in the first two years of the new strategic period.

Strategic Report

GOAL 2 We will nurture compassionate communities

We will continue to grow and nurture our Compassionate Communities and equip more people with the knowledge, skills and confidence to support each other through death, dying, grief and loss.

It became increasingly clear that one of the legacies of COVID-19 was a steep increase in the numbers of people who needed bereavement support.

We responded by:

Creating a new section about bereavement support on our website - our resources have been enhanced to include links articles, blogs, podcasts and videos.
Training six new partner organisations to deliver community bereavement support.
Delivering training courses to our Compassionate Neighbour (CN) Volunteers about bereavement to enable them to support family members and bereaved relatives.
Implementing a Chaplaincy review and reintroducing pastoral support volunteers who can also provide pre-bereavement and bereavement support.

In addition, we have:

Continued to recruit and train CNs and match them with Community Members. Since the beginning of this project in 2017 we have trained 370 CNs and made 453 matches.
Trained volunteers to support people to have planning ahead conversations and delivered Introduction to Planning Ahead courses with volunteers to support more people to have the knowledge and confidence to think about what would be important to them at the end of life.
Reintroduced volunteer roles that had been paused during the pandemic and developed new ones in both the hospice and in the community.

Goal 3

We will share our knowledge and expertise and influence the debate around death and dying

We will raise awareness of high-quality end of life care by sharing our skills, knowledge, research and opinions.

While it became possible to re-introduce some face-to-face learning opportunities in 2021/22, the shift to delivering most of our programme digitally was maintained. This was in response to feedback from both learners and the organisations sponsoring them. By providing this flexibility we have been able to extend our reach, enabling more health and social care colleagues to access the knowledge and skills they need to support good end of life care in their settings.

As well as delivering a programme of 266 education sessions to 2,756 learners, during the year we:

Increased the number of hospices delivering the European Certificate in Essential Palliative Care (ECEPC), now in its 20[th] year.
Created new learning and development partnerships with Learning Disability services – including delivering staff wellbeing training to their teams.
Delivered a Summer School to a diverse group of 53 young people interested in a career in health or social care
Worked with Hospice UK and the Foundation of Nursing Studies to develop a programme of Resilience-Based Clinical Supervision which will in turn better support clinical colleagues delivering palliative and end of life care
Seized opportunities to disseminate our education and research activity at conferences and through publication.

Strategic Report

Crucial to the achievement of our objectives for 2021/22 has been the ability of our income generation teams to generate the funds that we need and our operational and support services to create an environment that is positive, supportive, sustainable, safe and enables us to take advantage of, for example, new technologies, or improved ways to communicate with our stakeholders.

Highlights from the year include:

The retail business making a net contribution to the Hospice of £335,374 after the previous year of significant disruption, due mainly to periods of shop closures throughout the pandemic.
Continuing to generate strong financial and volunteer support from our local community against a back-drop of increasing competition for time, money and resources.
Increasing the confidence and ability of the Marketing and Communications team to generate digital content for our various social media channels.
An on-going focus on staff health and wellbeing, coupled with an internal focus on inclusion and diversity and what it means for Princess Alice Hospice culminating in the approval of the Inclusion and Diversity Strategy by the Board in May 2022.
Delivery of the IPU refurbishment to time and budget with minimal operational down time.
Significant progress in the implementation of MS365 including migrating Outlook to the cloud and introducing SharePoint across the organisation.
A greater emphasis on sustainability, energy efficiency and minimising our environmental footprint.

Objectives for 2022/23

We entered the final year of our five-year organisational strategy in April 2021. The Board of Trustees and SLT established an SDG and spent a significant part of the year under report developing a new strategy for our future. This process was informed by our experiences of operating throughout the pandemic. It was also a response to internal and external drivers that were having and would continue to have, a wide-ranging impact, namely:

Changing demographics, with a projected increase in the number of people who will need palliative and end of life care in the future.
An existing gap between those who need PEoLC and those who receive it – a gap that is exacerbated by inequality and social exclusion.
Changing health and social care structures with an increased emphasis on integration
Developments in technology and a growing acceptance of people to use digital services to access and receive health care.
Increasing and changing demands of the people we care for.
A competitive market for resources and skills.
Funding shortfalls – costs increasing faster than the income we can generate
A growing emphasis on sustainability and the ESG (environmental, social, governance) agenda.

Some of the drivers represented opportunities, some significant challenges, however it was clear that simply maintaining the status quo was not an adequate strategic response. At the same time the SDG recognised that we were operating in a period of continuous change and unprecedented uncertainty and complexity and that the ability to be agile, adaptive and responsive was crucial, while not losing sight of our long-term vision.

Strategic Report

We have therefore developed four overarching priorities for our next strategic period that will support our vision and sustain and develop our vital work now and in the future:

PRIORITY 1

Developing and expanding our specialist care

We will provide and develop outstanding, personalised, specialist end of life care by adapting our models of care and broadening access to our community services, focusing on providing the right care, by the right people, at the right time and in the right place.

In 2022/23 we will focus on:

Using data and patient and family insight to refine our service design and pathway flows to improve accessibility, reach and responsiveness.
Exploring emerging models of care such as “Virtual Wards”, and, where there are clear benefits, using the evidence and learning to adapt our services.
Implementing an effective digital solution to deliver remote consultations by clinicians to increase flexibility and choice for patients and families.

PRIORITY 2

Empowering people in our communities to better support and care for people at the end of life

We will make sure that people feel supported and have access to the right tools and advice to support others who are faced with death, dying, grief and loss. We will champion equity of access so that people can access our services equally, regardless of background, gender, sexual orientation or religion.

In 2022/23 we will focus on:

Deepening our understanding of the needs and make-up of our local community to allow us to address inequalities of access and respond to unmet needs.
Working in partnership with groups which are under-represented to deliver communitybased bereavement support.
Continuing to increase the number of CNs developing their skills and expertise so that they are better able to support community members through death, dying, grief and loss.
Re-launching the Planning Ahead programme (Advance Care Planning) to highlight the importance of understanding and sharing future needs and wishes.

PRIORITY 3

Developing our education, research and learning programmes to improve quality and encourage and support innovation

We will make sure people are supported and cared for at the end of life by health and social care professionals who have the right skills, expertise and confidence.

In 2022/23 we will focus on:

Scoping the potential of the ECEPC in terms of growth and diversification.
Continuing to develop ways in which we can support care home staff to improve their confidence and competence in end of life care.
Developing a Research Strategy that aligns with and supports the new organisational strategy.

Strategic Report

PRIORITY 4

Enhancing our collaborative influence in palliative and end of life care through leadership and advocacy

We will use our expertise and knowledge to improve end of life care for everyone facing death, dying, loss and bereavement.

In 2022/23 we will focus on:

Investing the time of senior leaders to work with health and social care partners within our care area as the new NHS governance and delivery structures form and develop.
Developing a way of assessing the value of partnerships and collaborations to inform decisions on how we allocate time and resources.

SUSTAINABILITY AND RESILIENCE

Delivery of the organisational priorities across the strategic period will be supported by organisational projects that will focus on sustainability in its widest context and develop greater organisational capacity, capability, and resilience.

The focus for 2022/23 will be:

Investing in additional fundraising posts in areas that we perceive to have growth potential
Investing in digital fundraising and marketing capabilities so that we can scale up digital engagement and support.
Implementing the People Plan and refreshing our employer brand so that we can continue to attract and retain the talent we need to deliver the strategy.
Developing a framework for ESG to capture our impact against all these areas across the organisation.
Developing greater organisational maturity in the use of data to support decision making.

In addition, once it became clear that we were finishing 2021/22 with a significant surplus, the Board agreed to establish a Sustainable Building Development fund of £500k from reserves so that we can continue to make capital investments in our building and infrastructure that will result in a decrease in our environmental impact.

Structure, governance and management

Princess Alice Hospice was incorporated as a company limited by guarantee on 25 November 1981 and is governed by its Articles of Association. We are registered with the Charity Commission in England and Wales. Our registered office is at West End Lane, Esher, Surrey KT10 8NA.

Objectives

The Hospice is an independent charity working across a large part of Surrey, south west London and Middlesex. We provide free high-quality, compassionate care and support at the end of life for patients, families, carers and close friends at every stage, up to, and after death.

Through education and research, we aim to improve palliative care knowledge and to change practice in the wider health and social care economy. Founded by our local community, fundraising and community support are crucial to our continuing work as a charity.

How we are governed

Trustees

Our Board of Trustees is responsible for overseeing the Hospice’s strategy and performance. It is chaired by Professor Sean Hilton (Professor Fiona Ross CBE until September 2021) and Jeannine Nolan has served as Vice-Chair (Professor Sean Hilton until September 2021).

The Trustees are the directors of Princess Alice Hospice for the purposes of the Companies Act 2006. They are not paid. There is a short biography of the Trustees on page 47.

The Board meets regularly throughout the year to consider, set and review strategies, policies, budgets, plans and performance. An annual “away day” is held for in-depth strategic discussions and decision-making. Members of the Senior Leadership Team (SLT) attend Board meetings to report back on performance and progress against strategic objectives. In-depth “spotlight” sessions and business reviews are delivered by members of the leadership team, a practitioner working in front-line services or a family member representing “patient voice”. This allows the Board to gain a deeper understanding of the organisation.

Impact of COVID-19

The Board has continued to work flexibly during 2021/22 to maximise the contribution from Trustees and Advisory Members and support diversity. Board and Committee meetings have been held face-to-face when restrictions allowed but the option to join remotely has been retained, allowing hybrid meetings to take place. Meetings were temporarily moved back online from December 2021 to February 2022 as a response to the rising number of COVID cases.

The Finance and General Purposes Committee has continued to monitor the Hospice’s cash position closely, receiving weekly updates. Individual Committee Chairs have been in regular contact with the lead SLT for their area.

Board Committees

The Board delegates powers and responsibilities to Committees, more details of which are given below. The Board believes that this enables more detailed discussion and understanding of key areas of the organisation. Each Committee has terms of reference defining membership, responsibilities and delegated authority. These are reviewed annually by the Committee and approved by the Board. There is an annual process of review to give the Board assurance that the Committees are working effectively. Minutes of Committee meetings are on the agenda for the following Board meeting and Committee Chairs provide a summary report for the Board on the major issues discussed and decisions taken.

The Clinical Strategy and Governance Committee , chaired by Heather Patel, is responsible for overseeing clinical strategy, education and research. It provides assurance on the development, implementation, safety and effectiveness of the clinical services delivered by the Hospice. It monitors clinical activity, performance and risks against the annual business plan, raising issues to the Board where appropriate. It also oversees relationships with our health and social care partners regarding grants, contracts and service level agreements. The Committee monitors health and education policy and regulation and keeps the Board informed as appropriate.

The Finance and General Purposes Committee , chaired by Despina Don-Wauchope, oversees the finances of the Hospice. It is responsible for reviewing and recommending to the Board the annual budget and financial strategy and monitoring performance against budget during the year. It oversees the investment of the Hospice’s funds, recommending on the appointment of an investment manager and reviewing their performance annually. In addition, the Committee is responsible for overseeing capital expenditure, estates and infrastructure.

The Income Generation Committee , chaired by Gail Cookson, is responsible for the identification, development, implementation and effectiveness of all income generation activities (except for NHS grants) including the Hospice’s retail portfolio. It ensures compliance with all regulatory requirements impacting the Hospice’s income generation activities.

The People and Communities Committee , chaired by Karen Roberts, oversees the development, implementation and effectiveness of the People Plan, diversity and inclusion, community engagement, marketing and communications programmes. It oversees and reviews HR governance, the volunteer strategy and from time to time undertakes workforce reviews, ensuring the Hospice has the skills and expertise it needs to deliver its strategy.

The Remuneration and Nominations Committee , chaired by the Board Chair, has a membership of the Committee Chairs, the Vice-Chair of the Board, the Chief Executive (CEO) and Company Secretary (nominations only). It meets twice a year to consider the skill mix of the Trustees, Committee membership and succession planning. Once a year it reviews the performance of the SLT and the CEO and makes recommendations on their remuneration. The Committee also oversees the recruitment process for Trustees, Advisory Members and SLT.

The Audit and Risk Committee , chaired by Tim Hewens (Sean Hilton to December 2021), oversees risk management and governance processes, external audit and internal risk and quality reviews. It reviews the management of systems for internal control and advises the Board on exposure, mitigation and lessons for continuous improvement. It manages the relationship with the external auditors, reviews feedback on their performance and value for money and advises on reappointment as appropriate.

Trustee and Committee advisory member recruitment

The Board believes it is vital to get a mix of Trustees with healthcare, legal, financial, investment, fundraising, commercial, digital and retail skills, as well as skills and experience drawn from the local community. Trustees are initially appointed for two years and may then be reappointed for up to two more four-year periods (up to a maximum of 10 years). The Board has a good gender balance and is setting goals to increase the representation of people from a variety of ethnic minority backgrounds, skills and experiences as part of our Inclusion Strategy.

There was no external recruitment campaign during 2021/22. Darren Webb joined the Board in July 2021 having previously been an advisory member to the Finance and General Purposes Committee. Darren has extensive experience in investment banking.

The Remuneration and Nominations committee added a second meeting to the cycle this year to focus specifically on Trustee recruitment and succession planning. The Committee reviewed the skills and knowledge of current Board members and identified some key skills gaps over the next few years as longer-standing Trustees step down at the end of their tenure. The review also identified some different skills that would support the Board over the new strategic period. The Board agreed that a recruitment campaign for a Trustee with senior digital experience should take place in the first quarter of 2022/23.

In addition to Trustees, the Board may invite individuals to become advisory members to Committees. This is typically someone with relevant specialist expertise in the Committee’s area of responsibility. These appointments are normally for an initial period of up to two years. During this time, the person may be invited to become a Trustee, or they may continue as a committee advisory member. Their appointment may be renewed by mutual agreement, and the Board may end the appointment at any time. During the year, there were 11 committee advisory members serving on Board committees.

The Board were delighted to welcome two new committee advisory members recruited during the year – Ros Irving, who joined the People and Communities Committee and Louise Mitchell, who joined the Income Generation Committee. Details of the current advisory members can be found on page 48.

New Trustees and advisory members receive an induction and training specific to their role, coordinated by the lead SLT and respective Committee chair. They also attend the Hospice’s induction day for all new employees and volunteers. Induction has taken place mainly remotely during 2021/22 but face-to-face visits have been arranged when restrictions allowed. The Chair and Vice-Chair follow up individually newly recruited Trustees and advisors to ensure that they feel supported and informed.

Charity Governance Code

The Board is committed to maintaining the highest standards of governance and has adopted the Charity Governance Code (the Code) as a tool to support continuous improvement:

https://www.charitygovernancecode.org/en/front page

The Code sets out seven principles and provides recommended practice to support charities to develop high standards of governance. Not all of the recommended practice will be appropriate for us to adopt but the Code is designed to be aspirational and to support the development of the charity over time.

Equality, diversity and inclusion have remained a focus for the Board in 2021/22 and an item has been added to every Board agenda giving time to reflect on the impact that Board discussions and decisions have for diversity.

The Board is committed to continuously improving its governance processes. Work was undertaken in the year to formally document the annual cycle of Board Assurance. A forward agenda was put in place for the Board and each of the committees. The flow of information was mapped, reducing duplication and ensuring that the work of the committees is strategically focused and provides the appropriate level of assurance to the Board. Meeting agendas have been reviewed to clearly identify the purpose of each item of business and to allow time for meaningful discussion. The introduction of SharePoint as the Hospice intranet during the year has greatly improved the efficiency of access to meeting papers, which no longer have to be circulated by email and can be accessed via a link within the agenda. Trustees and committee advisors now have improved access to an extensive range of resources to increase their understanding of the Hospice.

Senior Leadership Team

The Hospice internal management structure is made up of seven directorates, each led by a member of the team.

These directorates are:

Clinical Services – responsible for in-patient care, community care, wellbeing services, therapies, social work and education.

Medical – responsible for palliative medical care in all settings and covering doctors, including consultants.

Finance and Operations – responsible for finance, company secretarial and governance, facilities, front of house, health, safety, environment and business continuity, housekeeping and catering.

People and Organisational Development – responsible for human resources.

Community Engagement – responsible for volunteering, community engagement, bereavement care and spiritual care.

Income Generation – responsible for all income generation activities, apart from NHS income.

Digital, Marketing, Communications and Performance – responsible for ICT, digital, data, marketing, communications and performance.

Remuneration Policy

We recognise that we have a duty to deliver our services effectively and maximise the use of our resources. To do this we need to attract and retain suitably qualified people with the right skills, knowledge and experience and pay them fairly and responsibly.

The market comparator for the majority of our clinical roles is the NHS. We directly employ medical consultants, doctors, nurses and other allied professional healthcare staff and in order to recruit and retain qualified and experienced professionals we pay them at a rate equivalent to the relevant national scale.

For the remainder of our roles, when setting salaries, we take into account the knowledge, skills, experience and effort needed for the job and market forces affecting recruitment, which may be local or national. We also benchmark against available information such as comparable roles being advertised locally and charity salary surveys. We take part in such surveys ourselves and benchmark against a range of our peers.

Financial review

The COVID-19 pandemic has continued to impact the Hospice in 2021/22 although not on the scale experienced in the 2020/21. We have not seen any direct business impact of the Russian invasion of Ukraine apart from the general economic effect being experienced across the UK.

Over the period our main income streams can be categorised as legacies, NHS funding, fundraising and retail, these are discussed in more detail below.

Legacies

Legacies accounted for 34% of our net income in 2021/22 (2021: 23%). We use forecast information produced by Legacy Foresight, a specialist legacy sector analysis company, as a basis for budgeting and business planning. Legacy KPIs such as notifications, open estates and outstanding accruals are monitored and reported monthly. This should enable us to identify whether any fluctuations in legacy income are short-term, or part of a longer-term trend, so that we

can adapt our plans accordingly. We commissioned an updated report from Legacy Foresight in February 2022 to inform our projections for future years.

NHS England COVID-19 funding

A new package of NHS England funding was announced in December 2021 to allow the hospice sector to provide patient care to support the NHS COVID-19 response. The Hospice received £2,049,130 under this funding agreement. The income was restricted for patient care and has been fully expended in 2021/22. In 2020/21 the Hospice received £6,276,936 NHS England funding under two separate grant programmes.

NHS grants

NHS grants accounted for 19% (2021:16%) of our net income. These are block grants based on historical practice and not related to the level of clinical activity undertaken. We have one-year grant funding agreements with Surrey Heartlands CCG and South West London CCG. The Board has assumed in its strategic plans that there would not be a significant drop in this source of income over the next few years.

Fundraising and retail

The COVID-19 pandemic continued to impact trading activities in 2021/22 although much less than in the previous year.

Retail recovered strongly once the shops were able to re-open from 12 April 2021, helped by Government re-start grants of £200,963 (2021: £531,940). There have been no further enforced store closures and retail made a net contribution of £335,374 in 2021/22 compared with a net deficit of £3,154,707 in 2020/21.

Work on a strategic plan for the future of our retail portfolio continued during the year and as a result of this we outsourced our furniture collection and delivery service to Box Move, a specialist charity furniture business, in November 2021. In December 2021 we closed our Enfield store. Future plans include looking to exit our Distribution Centre to reduce central costs as it no longer suits our needs. We remain committed to maximising the contribution of our retail footprint in the future, both in terms of profitability and the part the shops play in disseminating our service and support to the local community.

Fundraising continued to be challenging in 2021/22, income from donations was £2,311,295 (2021: £2,563,840). Events fundraising has shown a small recovery, as some face-to-face events were able to resume after restrictions eased. Events income was £449,611 (2021: £397,182) but this remains low when compared with pre-pandemic income of over £800,000. We have continued to look at where we can maximise fundraising activity online and our community have supported us by responding generously to our campaigns and appeals.

Going concern

The Board and the Finance and General Purposes Committee continue to closely monitor the ongoing impact of the pandemic on both short and longer-term operations. A range of budget scenarios have been considered and cash flow forecasts prepared in response to scenario planning. The Trustees are satisfied that even under the worst-case scenario considered, there are sufficient funds in current bank and building society accounts, together with investment funds, to continue operating and meet liabilities as they fall due for the foreseeable future.

The Board’s view, therefore, is that the Hospice’s balance sheet is sufficiently robust to provide resilience and that our reserves should allow the Hospice time to respond with reduction of services and cost savings if income projections indicate a significant reduction over the next three years.

Reserves

As noted above, a significant amount of the Hospice’s income comes from legacies and NHS income. The Board maintains scrutiny over the external environment and uncertainties related to these sources of income. We carry out financial planning and produce a three-year projection of income and expenditure, cash and reserves.

The Trustees have set aside funds in a designated Running Costs Reserve to meet future charitable expenditure in the event of a significant short-term drop in income. This has a target of nine months’ (plus or minus three months’) budgeted charitable expenditure for the year ahead. During the current uncertain economic climate, and the fact that future pandemic-related restrictions cannot be entirely ruled out, the Board feels that the aim should be to maintain this reserve at the upper end of the target range. The balance on this reserve at the year-end represented 12 months (2021: 12 months) of the Hospice’s budgeted charitable expenditure for 2022/23.

The strength of this reserve has enabled the Board to approve a deficit budget for 2022/23. At the time the budget was approved we were projecting to return to a balanced budget in cash terms by 2023/24 but are now unlikely to achieve this. We are facing an increase of 292% in our energy costs, the impact of rising inflation on consumables and services, plus the need to pay the market rate to recruit and retain the skilled workforce that we need to deliver our care. Nevertheless, the Board feel that it is vital the Hospice maintains its services and continues to support our NHS partners in the local health economy. They have therefore authorised the SLT to spend an additional £250,000 over the agreed budget for 2022/23, where necessary to alleviate pressures on the workforce and to maintain our services. This is in addition to a commitment to matching the NHS pay award if it is in excess of the 3% the Hospice awarded from 1 April 2022. The cost of these commitments is expected to be additional expenditure of c.£510,000 from reserves.

The Trustees have established a designated fund, the Strategic Development Reserve, to support the delivery of the Hospice’s strategic objectives. There was no draw-down in 2021/22 (2021: £Nil) as the Board was engaged in the development of plans for the new strategic period. The Hospice’s new strategy was launched in April 2022 and the Trustees have agreed a number of strategic change projects starting from April funded from this reserve. The reserve is expected to be fully expended over the next three years and expenditure of up to £600,000 has been agreed for 2022/23.

This year the Trustees have established a new designated fund, the Sustainable Building Development Fund, to cover the cost of bringing the older part of the Hospice building, which is now 16 years old, up to modern standards of energy efficiency and to make it fit for purpose for new ways of working. It will also finance sustainable building development initiatives, as they are identified, in order to meet our sustainability goals.

Notes 5 to 7 of the Financial Statements provide more detail on these and other reserves.

Investments

As set out in the Articles, the Trustees may invest the Hospice’s reserves in banks and building society deposits, stocks, funds, shares or other securities they feel to be appropriate. The Hospice’s investments are managed on a discretionary basis by Cazenove Capital Management, a firm of professional investment managers. As at 31 March 2022, the Investment Portfolio totalled £3,203,711 (2021: £3,007,844). The market value of the Investment Portfolio increased by £164,758 (2021: £437,365) during the year.

Currently the only ethical restriction imposed by the Board is that there must be no direct investment in any securities issued by tobacco companies.

A review of the investment policy took place during the year, taking into consideration the growing debate around ethical and responsible investment. The new policy was approved by the Board in May 2022 and the Hospice has adopted a socially responsible approach to investment allowing ethical considerations to be taken into account whilst ensuring there is no significant detrimental impact on the investment return. Investments should deliver the best return for the Hospice, adhere to the agreed risk profile and also show compliance with any Environmental, Social and Governance (ESG) principles that are agreed by the Board. If any surplus funds are identified for investment in 2022/23 consideration will be given to investing in ethical and responsibly screened multi assets funds. The ESG principles will be further developed during the year ahead.

The Finance and General Purposes Committee and our investment manager regularly review the performance of the investments in meeting the Hospice’s investment policy.

More details about our investments are in Note 11 of the Financial Statements.

Employees

Our work is only possible because of the dedicated service that our employees provide. Each year we thank them for their hard work, commitment and extraordinary contributions. 2021/22 has not been the return to normal we had hoped for; it has continued to present challenges with everchanging Government guidance on how we can all work and live safely during the ongoing pandemic. Our employees have battled through all of this to keep our services operating and to continue to offer vital extended support to our local health economy.

Those who were working from home have gradually returned to the workplace and resumed their previous working pattern. We have always been open to flexible working and have approved new flexible working requests where these can be accommodated and are mutually beneficial to the employee and to the Hospice. When COVID cases were rising in December 2021 some teams resumed working mainly from home for a short period as a precautionary measure.

We recognise the stress that the pandemic has caused for people both at home and at work and its impact on personal resilience. We continue to do all we can to support employee wellbeing through the BUPA Healthy Minds service, regular email updates and Zoom sessions delivered by the Chief Executive and the SLT.

In 2021/22 the Hospice employed 416 people (2021: 428), the equivalent of 306 full-time employees (2021: 317).

Volunteers

We have welcomed back our volunteers returning to their roles over the course of 2021/22 as regulations and COVID-secure measures allowed. Understandably for some their circumstances have changed during the pandemic and they have decided that they can no longer continue volunteering. We thank them for the generous gift of time they have given us in the past. We have also welcomed new volunteers joining us for the first time and are pleased to see that our volunteer numbers have increased.

We are immensely grateful to all of our volunteers, without them we simply could not deliver our services in the way that we do. Volunteers provide enormous added benefit to the Hospice and the people we help.

Around 1,200 (2021: 970) volunteers support the Hospice in a variety of different roles. Some provide care services to our patients and families, as ward support volunteers, compassionate neighbours, bereavement support volunteers or complementary therapists. Others volunteer in the Hospice by manning our reception and coffee shop, supporting with administrative tasks, patient transport and maintaining our grounds. We also welcome volunteers from local companies who donate their time for a day to support us in the Hospice or our shops.

Other volunteers are involved in fundraising, including the Friends’ Committees, which organise events in the community and promote the work of the Hospice to raise vital funds. The largest group (around 550) normally volunteer in our retail operation, supporting the staff to keep the Hospice’s shops open six or seven days a week or helping with administration at the retail head office in Molesey.

Volunteers are recruited through advertising. They attend an induction programme and receive initial and ongoing training. Service users such as patients, families and carers, who have expressed an interest in participating in-service design, work with us on steering groups and in other activities where they can influence areas of service delivery.

Environmental reporting

We recognise the increasing and urgent need to improve environmental sustainability and the growing influence of stakeholder pressures and expectations to pro-actively demonstrate those improvements. We are at the beginning of our environmental journey so are focusing on compliance with the legal ‘Streamlined Energy and Carbon Reporting’ (SECR) requirement to report on our greenhouse gas (GHG) emissions, and introducing some of the initial areas of work identified for environmental improvement and sustainability.

SECR Reporting

The Companies (Directors’ Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018 implement the SECR requirements which require the Hospice to report on its greenhouse gas emissions in relation to use of gas, electricity and vehicle fuel, including the methodology used to calculate the emissions, as well as a benchmarking intensity ratio that will allow on-going comparisons in future years. Information on actions identified to improve energy efficiencies is also required.

The Hospice has met two of the qualifying criteria for reporting GHG emissions for the past two consecutive years. The data below covers the two qualifying years 2020/21 and 2021/22.

SECR Report – All hospice activity and retail operations

Emission Scopes	Emission Activities	Emissions (tCO2e)	Emissions (tCO2e)	Total kWh	Total kWh
		2021/22	2020/21	2021/22	2020/21
Scope 1		173.73	158.00	948516.09	858452.00
		23.23	11.55	98136.22	48049.99
	Data source: Gas and	vehicle fuel invoices
Scope 2		222.00	174.12	1045522.30	746845.00
	Data source: Hospice - smart meter; retail – British Gas ‘Billed kWhs’ data and invoices for non-British Gas supplies
Scope 3		35.41	31.06	143946.80	125277.59
	Data source: business	mileage from expenses claims
		19.65	14.97	N/A	N/A
	Data source: electrical	transmission/distribution based on Scope 2 data
Totals		474.02	389.70	2236121.02	1778624.58

Totals are for Hospice and retail operations combined
Scope 1 = Gas consumption and fuel consumption for Hl owned vehicles
Scope 2 = Electricity consumption
Scope 3 = Business use of private vehicles and transmission / distribution emissions associated with electricity consumption

• Totals are for Hospice and retail operations combined • Scope 1 = Gas consumption and fuel consumption for Hl owned vehicles • Scope 2 = Electricity consumption • Scope 3 = Business use of private vehicles and transmission / distribution emissions associated with electricity consumption	• Totals are for Hospice and retail operations combined • Scope 1 = Gas consumption and fuel consumption for Hl owned vehicles • Scope 2 = Electricity consumption • Scope 3 = Business use of private vehicles and transmission / distribution emissions associated with electricity consumption	• Totals are for Hospice and retail operations combined • Scope 1 = Gas consumption and fuel consumption for Hl owned vehicles • Scope 2 = Electricity consumption • Scope 3 = Business use of private vehicles and transmission / distribution emissions associated with electricity consumption	• Totals are for Hospice and retail operations combined • Scope 1 = Gas consumption and fuel consumption for Hl owned vehicles • Scope 2 = Electricity consumption • Scope 3 = Business use of private vehicles and transmission / distribution emissions associated with electricity consumption
Intensity ratio =tCO2e / fte(hospice and retail combined)		2021/2022 =1.59	2020/2021 =1.23
Intensity ratio =tCO2e / Retail units sold(≡ kgCO2e / unit sold)		2021/2022 =0.0004 (≡ 0.4 kgCO2e / unit sold)	2020/2021 =0.001 (≡ 1.0 kgCO2e / unit sold)
Methodology	• The Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (revised edition March 2004) • The UK Government GHG Conversion Factors for Company Reporting 2021 (for the 2021/2022 reporting year) • The UK Government GHG Conversion Factors for Company Reporting 2020 (for the 2020/2021 reporting year) • HM Government: Environmental Reporting Guidelines: Including streamlined energy and carbon reporting guidance (March 2019) • The Hospice will follow the rolling base year option to more easily compare year on year environmental performance, and to minimise the ongoing implications from 2020/2021.
Table Notes 1. 2020/2021 is not a true representative year due to COVID lockdowns and restrictions resulting in 45 shop closures from April 2020 and a phased re-opening from April 2021. There was also a reduction in other associated Retail activities. The Hospice In-Patient Unit remained open but with reduced bed numbers, although Community team visits to patients in their own homes increased. A majority of non-clinical staff worked from home, and volunteers were stood down from their roles from March 2020, with a few returning from September 2020. Retail services resumed between April and September 2021, and there was a phased return of Hospice services by April 2022. 2. Emissions, total kWh energy used, business mileage and the fte intensity factor for 2021/2022 all increased from 2020/2021, most likely due to full resumption of services and activities across the Hospice following easing/removal of COVID restrictions, although some COVID restrictions did also influence energy use, eg increased heating demand due to open windows to ensure effective ventilation. 3. Although not clear from the combined overall totals, there was an actual decrease in electrical consumption in 2021 / 2022 in the main Hospice building, which could be explained by greater numbers of staff working from home, LED replacements of older lights and greater general awareness. 4. The figures do not take account of the work-related increase in use of domestic energy for workers working from home. 5.More meaningful comparisons should be available in future years.

Energy Related Mitigation Measures

Taking forward recommendations from the Hospice’s Energy Savings Opportunities Scheme (ESOS) Report (based on the last qualifying period of 2018/2019) and other initiatives we are pursuing, the following mitigation measures to reduce energy use are being actioned/considered.

Lighting

We will continue with our programme to replace older, energy inefficient lighting, eg fluorescent lights, with energy efficient LED lights. Currently around 60% of the main Hospice building has been upgraded. LED replacement plans also include our Retail estate.

Heating, Ventilation and Air Conditioning

We are looking at a centrally controlled temperature system, to stop unreasonable demands on the system. We will continue with planned preventative maintenance work to maximise system insulation and efficient operation, including identifying key components for replacement where they cannot maintain the required energy efficiency levels.

Two more energy efficient condensing boilers have been installed recently to replace the old, inefficient boiler. The new control panel allows finer, more precise and targeted system tuning and adds additional efficiencies.

Energy Monitoring and Management

We are currently in fixed-term contracts with our energy suppliers that expire in 2022. Our ESOS report recommended researching alternative suppliers and we will be using the Hospice Quality Partnership approved broker Focus Energy to support us with this process.

Using available data, we will look at energy usage monitoring and how this can be used to promote/change behaviours and consumption.

Renewables and Other Energy Reduction Measures

The Board has approved a three-year capital expenditure programme that includes approval for the installation of solar panels on the zinc roof of the main Hospice building in 2023/24. These would provide an estimated 50,000kWh of electricity per year (approximately an 1/8th of the main building annual usage) all of which will feed back into Hospice demand. If we can secure funding this project will be brought forward.

Transport

We have invested in the technology to support hybrid-working to cut down on travel to/from the workplace. Many of our meetings and education courses now take place via video conferencing.

Two electric car charge points were installed at the main Hospice building in May 2022 and are available for use by employees, volunteers and visitors. This will enable us to replace the current Hospice diesel vehicle with an electric vehicle and support people coming on site to use electric vehicles.

We will encourage alternative travel options by promoting the Hospice Cycle to Work Scheme and safe walking routes.

General

Our ‘Environment Working Group’ will promote environmental awareness and behaviours within the Hospice and capture improvement ideas.

We will identify areas where key performance indicators (KPIs) and improvement targets can be set.

Areas for further development

Waste: identify areas of waste generation and develop initiatives to reduce wastage and promote re-use, up-cycling and re-cycling.
Water: identify areas of highest water usage and waste and develop initiatives to increase re-use and reduce wastage.
Nature: identify ways to introduce and support new, non-harmful species into the Hospice grounds while maintaining our current biodiversity, and promote these to our stakeholders to provide wellbeing benefits, interest and awareness.
Procurement: develop procurement systems that take into account our environmental standards and expectations to ensure responsible and ethical investments, purchases and supply chains.
Publicity: increase and promote internal and external interest and awareness of Hospice environmental initiatives to all current and future stakeholders.

Public benefit

The Trustees give careful consideration to the Charity Commission’s guidance on public benefit when setting the Hospice’s aims and objectives and planning activities. Access to our services is on the basis of need and open to anyone via referral from a healthcare professional, or, in the case of bereavement support, self-referral. There is no charge to patients or their families for any of our current care services.

Statement of Trustee’s responsibilities

The Trustees (who are the Directors of the Hospice for the purposes of company law) are responsible for preparing the Trustees’ Annual Report and the financial statements in line with the law and the regulations that apply. Under company law, the Trustees must prepare financial statements for each financial year. Under that law, the Trustees have elected to prepare such statements in accordance with United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). By law, these statements must give a true and fair view of the Hospice’s finances and of the income and expenditure for the financial year.

When preparing these financial statements, the Trustees must:

Choose suitable accounting policies and follow them consistently;
Keep to the methods and principles in the Charities’ Statement of Recommended Practice (FRS 102);
Make judgements and estimates that are reasonable and prudent;
State whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;
Prepare the financial statements on a ‘going concern’ basis, unless the Hospice is unlikely to continue in business.

The Trustees must keep proper accounting records that disclose the Hospice’s financial position to a reasonable level of accuracy at all times and make sure that the financial statements comply with the Companies Act 2006. They are also responsible for protecting the Hospice’s assets and taking reasonable steps to prevent and detect fraud and other unusual activity.

The Trustees believe they have taken all the necessary steps to make the auditors aware of any relevant audit information and have given the auditors a written undertaking to that effect. They

also believe that they have identified the major risks that the Hospice faces. These have been reviewed, and systems have been put in place to reduce these risks as far as possible.

Auditor

Mazars LLP, having expressed their willingness to continue in office, will be deemed reappointed for the next financial year in accordance with section 487(2) of the Companies Act 2006, unless the company receives notice under section 488(1) of the Companies Act 2006.

Fundraising Regulation

Princess Alice Hospice is registered with the Fundraising Regulator and committed to adhering to the Code of Fundraising Practice. We review compliance through audit and monitoring feedback, and take corrective action where required.

Standards and monitoring

We are committed to following the highest ethical standards and ensuring a quality supporter experience. We have detailed policies and procedures in place that in many cases go beyond the minimum requirements for the sector, and we regularly monitor ourselves and our agencies through a range of methods (including regular internal audits and call listening). This helps ensure all Hospice fundraisers, and those who work on our behalf are aware of, and adhere to, our high standards. Some of our fundraising activity is conducted on our behalf, by carefully selected professional fundraising agencies. We also work with agencies to telephone existing supporters to talk about their donation and, on some occasions, to ask for a further donation. We work very closely with our agencies to make sure they represent our work and our organisation to the highest standards. None of our fundraisers, whether employed by us or one of our agencies, are paid on a commission basis.

Complaints

We report our complaints on a calendar year basis to comply with the Fundraising Regulator’s requirements. The number of complaints received for the 12 months to 31 March 2022 regarding fundraising was zero.

Managing communications

Most people who donate to us want to know how their money is making a difference. We ask whether they would like us to keep in touch with them so we can update them on our work and how they’ve helped us. From time to time, we ask supporters if they would like to support us further – for example, by increasing their donation or by taking part in a particular event. Sometimes, we need to share information with authorised people or organisations so they can deliver services. If this is the case, we only give them the information they need to do so – and we always make sure that they will protect information with security and confidentiality processes equivalent to ours.

We ask supporters how they would prefer us to communicate with them. We give them the option to let us know if they prefer less contact or no longer wish to hear from us, and always respect their wishes. We never share, swap, rent or sell our supporters’ details to any other charities or third parties for marketing purposes.

Our Fundraising Promise

We will commit to high standards.

We will be clear, honest and open.

We will be fair and reasonable.

We will be respectful.

For further details please see our privacy policy at www.pah.org.uk

Principal risks and uncertainties

The Audit and Risk Committee (A&RC) oversees the Hospice’s risk management and governance processes on behalf of the Board.

During 2021/22 we reviewed and refined our approach to risk management. A new organisational risk register was developed, with risks assigned to the SLT lead for each area of business. The register was reviewed by A&RC and approved by the Board. The SLT review the register on a regular basis, at least before every Board meeting, and risks can be escalated or de-escalated at any time, informed by the individual directorate risk registers. The role of A&RC is to oversee the Main Risks and to moderate the organisational risk register. Each committee reviews the risks relevant to its area of operation, supported by the SLT lead.

The Main Risk register has six risk areas that impact the Hospice. These act as domains for the organisational risk register and each committee gives them a “RAG” rating for their area under their remit. This helps A&RC to determine an overall risk rating for the domains. A summary status of main risks, and a commentary, is provided for each board meeting by the Chair of A&RC.

The organisational risk register helps us to prioritise risks in terms of the effect they might have and how likely they are to occur. The register also identifies the controls, systems and procedures in place for mitigation. At each Committee’s meeting the register is reviewed and the A&RC is notified of any significant change in any of the major risk areas. Committees cross representation by Trustees allows a verbal report from each Committee to the A&RC by a Trustee member who is also a member of that committee.

There is a formal annual review of the risk domains and organisational risk register by the A&RC and the Board. A&RC collates views and presents a summary to the Board for further discussion.

Along with every other charity, corporation and organisation, the Hospice had to adjust its policies and operations to meet the challenges of the COVID-19 pandemic which impacted on every main risk area. Although most restrictions have been removed the Trustees continue to monitor the business impact of living with COVID-19 during 2022/23. The potential for restrictions to be reimposed if infection levels rise later in the year cannot be ruled out.

At the present time we have not seen any significant business impact as a result of the Russian invasion of Ukraine apart from the general economic impact being experienced across the UK. However, the impact of rising inflation is a serious concern for the Board and we are seeing significant increases in the cost of utilities, services and consumables. One of our main risks is recruitment and retention and we are facing an increasingly competitive jobs market locally. The Board have agreed to match the NHS pay award, when announced, to mitigate the risk of losing staff. We have already paid a 3% increase from 1 April, recognising that our employees are also experiencing the effect of rising prices.

The longer-term economic impact of the UK leaving the EU, the pandemic and the conflict in Ukraine remains, and will remain, a significant concern/risk for the Board and its committees.

Our Main Risk areas are:

Income – inability to generate sufficient income to deliver our charitable activities. We have diversified our income streams, monitor our finances closely and have an appropriate level of reserves to withstand short term funding fluctuations. If we identify a longer-term trend of falling income, our reserves will ensure continuity of service provision whilst we seek other sources of funding or implement an appropriate cost reduction programme. Since the onset of the COVID-19 pandemic, F&GP receive a weekly update on our cash position.

People – inability to recruit and retain the people with the right skills we need across the organisation. We carry out workforce planning and monitor supply and demand carefully,

introducing new roles and diversifying skills and competencies to make scarce resource go further. We have developed a new “People Plan” for the strategic period 2022 – 27 which supports effective recruitment, development and retention. We also carry out employee satisfaction and wellbeing surveys.

Culture/morale – inability to align our culture with changes that we need to make and that are being made in the environment within which we work. The Board and SLT recognise that our people are at the heart of all we do and that it is essential that our employees and volunteers understand what is important to us, our patients and families and the communities that we work with. We are open and transparent in our communications, share our business decisions and rationale and take steps to ensure that the organisational strategy is known and understood throughout the organisation. We monitor the effectiveness of these steps by conducting regular employee and volunteer engagement surveys.

Health and Social Care Environment – the risk that changes in the health and social care environment will impact on our NHS funding and/or our ability to continue to deliver palliative and end of life care and support. Senior colleagues work in partnership with health and care professionals and organisations across local health economies, demonstrating the impact of the care that we deliver. As new structures emerge, we take every opportunity to ensure that we have effective representation and continue to advocate for the needs of patients facing the end of life.

Reputation – risk of reputational damage . As a sector leader, our reputation is of vital importance. We have a comprehensive set of policies and procedures in place to ensure compliance with best practice and legislation. All comments and complaints are promptly responded to and investigated to ensure that lessons are learned for organisational improvement. This is supported by our communications strategy. In 2021/22 the Hospice was inspected by the CQC and achieved an overall rating of “Outstanding” for the second consecutive time.

Business continuity – risk of fire, flood or other environmental events that impact on our ability to operate . We have a comprehensive business continuity plan in place. This includes contingency plans for maintaining services and operations in the event that the Hospice building is out of use. We have an offsite disaster recovery server which can be brought online very quickly to ensure continued access to patient records and other business critical information. Staff receive regular training on dealing with emergency situations, including evacuation of the premises if necessary. Elements of the plan are tested on a regular basis. Our ability to continue to deliver care and support and maintain our operations during the COVID-19 pandemic has provided reassurance to the Board.

Approved by the Board of Trustees on 13 July 2022 and

signed on its behalf by

Sean Hilton

Chair, Board of Trustees, Princess Alice Hospice

Independent auditor’s report to the members of Princess Alice Hospice

Opinion

We have audited the financial statements of Princess Alice Hospice (the ‘charity’) for the year ended 31 March 2022 which comprise the Consolidated Statement of Financial Activities, the Consolidated and Charity Balance Sheets, the Consolidated Statement of Cash Flows and notes to the financial statements, 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:

give a true and fair view of the state of the charity and the group’s affairs as at 31 March 2022 and of the group’s income and expenditure for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared 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.

Other information

The other information comprises the information included in the Strategic Report and Trustees’ 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 course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material

misstatements, we are required to determine whether 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:

the information given in the Trustees’ Report which includes the Strategic Report and the Directors’ Report prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic Report and the Directors’ Report included within the Trustees’ Report has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors’ Report included within the Trustees’ Report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion adequate and proper accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of trustees’ remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.

Responsibilities of Trustees

As explained more fully in the trustees’ responsibilities statement set out on page 21, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the 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.

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 the financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

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.

Based on our understanding of the charity and its industry, we considered that non-compliance with the following laws and regulations might have a material effect on the financial statements: employment regulation, health and safety regulation, anti-money laundering regulation, noncompliance with implementation of government support schemes relating to COVID-19.

To help us identify instances of non-compliance with these laws and regulations, and in identifying and assessing the risks of material misstatement in respect to non-compliance, our procedures included, but were not limited to:

Inquiring of management and, where appropriate, those charged with governance, as to whether the charity is in compliance with laws and regulations, and discussing their policies and procedures regarding compliance with laws and regulations;
Inspecting correspondence, if any, with relevant licensing or regulatory authorities;
Communicating identified laws and regulations to the engagement team and remaining alert to any indications of non-compliance throughout our audit; and
Considering the risk of acts by the charity which were contrary to applicable laws and regulations, including fraud.

We also considered those laws and regulations that have a direct effect on the preparation of the financial statements, such as tax legislation, pension legislation, the Companies Act 2006, the Charities Act 2011 and the Charities Statement of Recommended Practice.

In addition, we evaluated the trustees’ and management’s incentives and opportunities for fraudulent manipulation of the financial statements, including the risk of management override of controls, and determined that the principal risks related to posting manual journal entries to manipulate financial performance, management bias through judgements and assumptions in significant accounting estimates, in particular in relation to accrued income, income recognition (which we pinpointed to the cut-off assertion), and significant one-off or unusual transactions.

Our audit procedures in relation to fraud included but were not limited to:

Making enquiries of the trustees and management on whether they had knowledge of any actual, suspected or alleged fraud;
Gaining an understanding of the internal controls established to mitigate risks related to fraud;
Discussing amongst the engagement team the risks of fraud; and
Addressing the risks of fraud through management override of controls by performing journal entry testing.

There are inherent limitations in the audit procedures described above and the primary responsibility for the prevention and detection of irregularities including fraud rests with management. As with any audit, there remained a risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal controls.

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 the audit 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.

Nicola Wakefield (Senior Statutory Auditor) for and on behalf of Mazars LLP Chartered Accountants and Statutory Auditor

6 Sutton Plaza, Sutton Court Road, Sutton, Surrey, SM1 4FS

Date: 1 September 2022

Consolidated statement of financial activities (including income and expenditure account) For the year ended 31 March 2022

Consolidated Notes Un	Consolidated Notes Un	Consolidated Notes Un	restricted Designated R funds funds	restricted Designated R funds funds	restricted Designated R funds funds	estricted En funds	dowment funds	To	tal funds To 2022	tal funds To 2022	tal funds 2021
Income			£		£	£	£		£		£
Donations and legacies Donations Legacies NHS grants	1.4 1.4 1.4		2,048,934 3,840,693 2,106,148		- - -	262,361 - -	- - -		2,311,295 3,840,693 2,106,148		2,563,840 2,943,798 2,095,908
Other trading activities Retail shops Fundraising events Trading subsidiaries	2 1.4 3		6,042,851 449,611 665,358		- - -	- - -	- - -		6,042,851 449,611 665,358		1,544,272 397,182 595,067
Investments	1.4		51,826		-	-	905		52,731		51,933
Charitable activities NHS England Covid-19 funding NHS Covid-19 local response funding NHS service funding NHS continuing healthcare funding Education	1.4 1.4 1.4 1.4 1.4		- - 322,963 55,183 240,286		- - - - -	2,049,130 - - - -	- - - - -		2,049,130 - 322,963 55,183 240,286		6,276,936 289,529 278,519 62,190 132,902
Other income Coronavirus Retail Grants Coronavirus Job Retention Scheme Other income	1.4 1.4 1.4		200,963 51,067 59,054		- - -	- - -	- - -		200,963 51,067 59,054		531,940 1,302,403 10,942
Total income		16,134,937			-	2,311,491	905	18,447,333		19,077,361
Expenditure
Expenditure on raising donations and legacies	4	966,114			586	-	-	966,700		930,301
Expenditure on other trading activities Retail shops Fundraising events Trading subsidiaries	2 & 4 4 3 & 4	5,705,055 139,326 281,639			2,422 - -	- - -	- - -	5,707,477 139,326 281,639		4,698,979 131,327 246,129
Total expenditure on raising funds		6,126,020			2,422	-	-	6,128,442		5,076,435
Expenditure on charitable activities In-patient care Hospice at home Community engagement and support Education	4 4 4 4	3,563,571 2,812,784 596,642 800,697			2,018 1,622 274 339	1,194,633 1,013,737 48,125 -	885 - - 20	4,761,107 3,828,143 645,041 801,056		5,011,016 3,698,611 569,383 776,909
Total expenditure on charitable activities		7,773,694			4,253	2,256,495	905	10,035,347		10,055,919
Total expenditure	4	14,865,828			7,261	2,256,495	905	17,130,489		16,062,655
Net income before gains/losses Net gains on investments	11	1,269,109 164,758			(7,261) -	54,996 -	- -	1,316,844 164,758		3,014,706 437,365
Net income Transfer from designated funds Transfer from restricted funds	5 6	1,433,867 (379,126) 53,201			(7,261) 379,126 -	54,996 - (53,201)	- -	1,481,602 - -		3,452,071 - -
Net movement in funds		1,107,942			371,865	1,795	-	1,481,602		3,452,071
Reconciliation of funds
Total funds brought forward at 1 April 2021		322,403		18,391,230		78,069	905,041	19,696,743		16,244,672
Total funds carried forward at 31 March 2022		1,430,345		18,763,095		79,864	905,041	21,178,345		19,696,743
Note 5						Note 6	Note 7

All the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above.

The comparative figures for each fund are shown in Note 8. The Notes on pages 31 to 46 form part of these financial statements.

Balance sheets as at 31 March 2022

----- Start of picture text -----
Group Charity
Notes 2022 2021 2022 2021
£ £ £ £
Fixed assets
Intangible assets 9 71,867 110,982 71,867 110,982
Tangible fixed assets 10 5,820,191 6,201,950 5,820,191 6,201,950
Investments 11 3,203,711 3,007,844 3,204,811 3,008,944
Total fixed assets 9,095,769 9,320,776 9,096,869 9,321,876
Current assets
Stock 12 16,732 28,594 - -
Debtors 13 6,318,098 4,802,990 6,573,728 5,018,254
Cash at bank 7,236,261 6,544,196 6,887,633 6,253,622
Total current assets 13,571,091 11,375,780 13,461,361 11,271,876
Liabilities
Creditors: Amounts falling due within one year 14 (1,389,515) (900,813) (1,280,885) (798,009)
Net current assets 12,181,576 10,474,967 12,180,476 10,473,867
Total assets less current liabilities 21,277,345 19,795,743 21,277,345 19,795,743
Provisions for liabilities
Annuity provision 1.9 (99,000) (99,000) (99,000) (99,000)
Total net assets 21,178,345 19,696,743 21,178,345 19,696,743
The funds of the charity:
Endowment funds 7 905,041 905,041 905,041 905,041
Restricted income funds 6 79,864 78,069 79,864 78,069
Designated funds 5 18,763,095 18,391,230 18,763,095 18,391,230
Unrestricted funds 1,430,345 322,403 1,430,345 322,403
21,178,345 19,696,743 21,178,345 19,696,743
----- End of picture text -----

Approved by the Board of Trustees on 13 July 2022 and signed on its behalf by:

Sean Hilton Chair

D.Don-Wauchope Honorary Treasurer

Consolidated cash flow statement for the year ended 31 March 2022

Notes to the Financial Statements

FOR THE YEAR ENDED 31 MARCH 2022

1. Accounting Policies 1.1 Basis of preparation

These financial statements are 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) - (“Charities SORP” (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (“FRS 102”) and the Companies Act 2006.

The charitable company, Princess Alice Hospice (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).

The financial position of the Hospice is set out in the Trustees’ Annual Report. The COVID-19 pandemic has continued to impact the Hospice’s voluntary and trading income in 2021/22. Retail income has recovered strongly and alongside planned changes to the structure of the retail estate saw a significant improvement. The Hospice has been able to access Government re-start grants for retail businesses of £200,963 (2021: £531,940 various support grants). The Hospice claimed, and was reimbursed for, £34,299 (2021: £1,197,431) from the Coronavirus Job Retention Scheme

(CJRS) for shop staff who were furloughed. (See note 1.4 for more details of these grants). The retail shops also benefitted from a business rates holiday for part of 2021/22.

Fundraising has recovered more slowly, with community fundraising particularly impacted. PAH Trading Limited saw a recovery in new goods sales and commission on Gift-aided sales after the shops re-opened. Face-to-face education courses have remained limited during the year but courses offered via remote learning have expanded.

The Hospice has benefited from NHS England restricted funding in the form of grants through Hospice UK to support the NHS COVID-19 response. This is on a similar basis to the programme that ran from November 2020 to March 2021. A total of £2,049,130 (2021: £6,276,936) was receivable during 2021/22 of which £1,682,811 (2021: £1,187,019) remained outstanding at 31 March 2022. (See note 1.4 for further details)

Cash flow forecasts have been prepared and a range of future scenarios considered. The Trustees are satisfied that, due to the level of cash and reserves held, even under the worst-case scenario considered there are sufficient funds to continue operating and meet liabilities as they fall due for the foreseeable future.

The Trustees are of the opinion that the Hospice has sufficient money in current bank and building society accounts together with investment funds to continue in operational existence for the foreseeable future. The Trustees therefore continue to adopt the going concern basis of accounting in preparing these annual financial statements.

1.2 Group financial statements

The financial statements consolidate the results of the Hospice and its wholly-owned subsidiaries PAH Trading Limited and PAH Lottery Limited (“the group”) on a line-by-line basis. A separate Statement of Financial Activities (“SoFA”) and Income and Expenditure Account for the charity has not been presented because the Hospice has taken advantage of the exemption afforded by section 408 of the Companies Act 2006. The income of the Hospice was £18,165,695 (2021: £18,831,497) and the expenditure was £16,848,851 (2021: £15,816,790).

1.3 Fund accounting

Endowment, restricted, designated and unrestricted funds are separately disclosed in the Balance Sheet and in the Consolidated SoFA. These different funds are defined as follows:

Endowment funds are funds given to the Hospice where it may use only the income generated from investing these funds
Restricted funds are subject to specific restrictive conditions imposed by the donor or by the nature of an appeal
Designated funds are set aside at the discretion of the Trustees for specific purposes. They would otherwise form part of unrestricted funds
Unrestricted funds are available to use at the discretion of the Trustees in furtherance of the charitable objectives of the Hospice.

1.4 Income

The total income receivable in the year comprises donations, legacies, NHS income, income from trading activities, interest, fees from education courses run by the Hospice, coronavirus-related government grants and other sundry income.

Legacies are recognised as income when it can reasonably be assumed that the Hospice is entitled to the legacy and the amount can be estimated with sufficient reliability.

NHS England (NHSE) COVID-19 funding is income received under a funding programme administered by Hospice UK during 2021/22. The NHSE awarded funding for hospices to provide

patient care to support the NHS COVID-19 response. The funding was restricted and has been fully expended in 2021/22.

NHS grants are the block grants that the Hospice receives from NHS Surrey Heartlands Clinical Commissioning Group, and NHS South West London Clinical Commissioning Group (the “CCGs”). These are based on historic practice and not related to the level of clinical activity undertaken by the Hospice. They are only agreed for up to one year at a time.

NHS service funding is income received related to the provision of a clinical service, which is normally linked to specific clinical activities undertaken by the Hospice. This may be funding for a new initiative which has been commissioned by a CCG in its care area, such as rapid response night service, or a pilot project. Funding is typically received as a percentage contribution towards the total costs.

NHS continuing healthcare funding is income received for patients who are eligible for a continuing care package. These patients are ready for discharge from the In-Patient Unit but are waiting for a suitable place in a care home or nursing home, or for domiciliary care to be arranged.

Retail re-start grants are Government grants received via local authorities to support non-essential retail businesses to get up and running after lockdown closure.

The CJRS was set up by the Government to support businesses with the employment costs of staff who would otherwise have been laid off or made redundant because the business was severely impacted by the COVID-19 crisis. The Hospice claimed, and was reimbursed for, £51,067 in total for 2021/22 (2021: £1,302,403).

1.5 Donated goods and services

Donated vehicles, plant or furniture are recognised as tangible fixed assets and the corresponding gain recognised as income from donations in the SoFA. Donated facilities or services are likewise recognised as income from donations on the basis of the value of the gift to the Hospice and an equivalent amount recognised as an expense under the appropriate heading in the SoFA.

The Hospice received donations of goods to the value of £12,593 in the year ended 31 March 2022 (2021: £Nil). Donated goods for resale are recognised as income when sold and included in income from retail shops in the SoFA. It is not practical to estimate the fair value of these goods on receipt because of the volume of low-value items received and the lack of detailed records.

In accordance with the Charities SORP (FRS 102), general volunteer time is not included as income in the accounts as it is not possible to measure this reliably. However, the Hospice relies on the contribution of volunteers and is very grateful for their time. See page 16 for further details.

1.6 Expenditure

Direct costs comprise expenditure incurred during the year both directly and indirectly attributable to the activity concerned. Support costs include the cost of governance, housekeeping, catering, facilities and health & safety, people services, marketing and communication, finance and administration and depreciation of fixed assets. These have been allocated to activities on a proportionate basis e.g. by activity level, headcount or on the basis of staff time spent (see Note 4).

1.7 Taxation

As a registered charity, the Hospice benefits from business rates relief from local Councils and is exempt from direct tax on its charitable activities. The Hospice is able to claim back VAT on most of its activities, any irrecoverable VAT is included in the cost of those items to which it relates. Income tax recoverable in respect of donations under Gift Aid and investment income is included with the income to which it relates.

1.8 Intangible and tangible fixed assets

Fixed assets are stated at cost, net of depreciation. Depreciation is provided at rates calculated to write off the cost in equal instalments over the economic life of the asset at the following annual rates:

s:
•	Intangible assets	20%/33%
•	Freehold land	0%
•	Freehold buildings	4%
•	Leasehold buildings	over the life of the lease
•	Furniture and equipment	10%
•	Medical equipment	20%
•	Motor vehicles	25%
•	Information and Communication Technology Equipment	20%/33%

Items are treated as fixed assets and their costs capitalised only where the purchase price exceeds £1,000.

Intangible fixed assets are non-monetary fixed assets that do not have physical substance, such as computer software, licences and website development.

The cost of leasehold buildings represents capital expenditure on retail shops and lease acquisition premiums.

1.9 Pension costs

The total employer pension contribution to all schemes for the year ended 31 March 2022 was £623,568 (2021: £632,716). Total contributions of £95,838 (2021: £98,040) were due to be paid after the year end.

NHS Pension Scheme

The Hospice makes payments to the NHS Pension Scheme for former NHS employees who, on employment with the Hospice, are eligible to continue in or re-join the NHS Pension Scheme. The NHS Pension Scheme is an unfunded defined benefit scheme that covers employees of NHS employers, General Practices and other bodies allowed under the direction of the Secretary of State for Health and Social Care in England and Wales, which includes the Hospice. It is not possible to identify the Hospice’s share of the underlying assets and liabilities and as a result the NHS Pension Scheme is treated as a defined contribution scheme under FRS102.

The employer contribution payable in the year to the NHS Pension Scheme was £318,855 (2021: £335,766).

Group Personal Pension Scheme

A defined contribution scheme is in operation for eligible employees with contributions payable by both the Hospice and the relevant employees. The assets of these plans are held separately from those of the Hospice, being invested with an insurance company. The current provider of the scheme is Scottish Widows Limited.

The employer contribution payable in the year into the Group Personal Pension Scheme was £199,982 (2021: £203,009).

Auto-enrolment

All employees meeting certain criteria must be enrolled into a workplace pension if they are not already in a qualifying scheme. The Hospice has chosen the National Employment Savings Trust (“NEST”) to meet its auto-enrolment obligations. The employer contribution payable in the year into NEST was £87,025 (2021: £77,518).

Other pension schemes

The Hospice contributed to one other pension scheme (2021: one). This scheme is a defined contribution pension scheme.

Prior to 31 December 2011 it was a defined benefit scheme, which is now closed to new members and also to future accrual of benefits to existing members. It is not possible to identify the Hospice’s share of the underlying assets and liabilities and as a result the scheme is treated as a defined contribution scheme under FRS102. However, the scheme is in deficit and the Hospice is paying its share of the deficit on an ongoing basis through its employer contributions at a rate set by the scheme and reviewed annually.

The employer contribution payable in the year into the scheme was £9,960 (2021: £8,503).

Annuities

The Hospice is contracted to pay annual sums for life to two former employees based on a sum of £4,499 per annum in 1998 increased by the Hospice annual salary increase (if any). The sum paid in the year under review was £7,746 (2021: £7,520). This liability is met from income in the year in which it is paid. During 2021/22 the Hospice was notified that one of the former employees had died.

A provision of £99,000 is retained to cover future unfunded liabilities. The Trustees consider this provision to be adequate.

1.10 Stock

Stock purchased for sale is valued at the lower of cost and net realisable value. Stock donated for sale in the Hospice’s retail shops is valued at nil.

1.11 Operating leases

The Hospice has entered into various operating leases, the future financial commitment to which is set out in Note 18. Rentals payable under these leases are charged on a straight-line basis over the term of the lease.

1.12 Investments

Listed investments are included in the balance sheet at market value. Realised gains and losses on disposals in the year and unrealised gains and losses on investments at the balance sheet date are included in the Consolidated Statement of Financial Activities. The movement in the valuation of investments during the year is set out in Note 11.

2. Retail shops results

----- Start of picture text -----
2022 2021
£ £
Turnover 6,042,851 1,544,272
Direct costs (5,407,501)
Support costs (299,976) (5,707,477) (4,698,979)
Net contribution/(deficit) as per SoFA 335,374 (3,154,707)
"Other income" related to retail operations
Coronavirus Job Retention Scheme 34,299
Coronavirus retail grants 200,963 235,262 1,729,371
570,636 (1,425,336)
----- End of picture text -----*

*Turnover includes £1,870,868 (2021: £503,015) of donations and associated Gift Aid of £467,717 (2021: £125,754) from the retail Gift Aid scheme. This scheme involves PAH Trading Limited selling goods on behalf of supporters (“Agency Sales”) in the Hospice’s retail shops and the supporters then donating the proceeds of the Agency Sales to the Hospice under Gift Aid.

The retail shops re-opened from 12 April 2021 and there were no further enforced closures due to the pandemic. Retail shop staff were furloughed from 1 – 12 April 2021 and the Hospice was able to recover the majority of their salary costs through the CJRS. A total of £34,299 (2021: £1,197,431) was recovered. This is shown under “other income” in the Statement of Financial Activities (SoFA) on page 29. The Hospice has also been able to access retail re-start grants of £200,963 (2021: £531,940). Although the grants are directly related to the retail shops the income is treated as a Government grant and is shown under “other income” in the SoFA.

3. Trading subsidiaries

The Hospice has two wholly-owned subsidiaries which are incorporated in the UK for the purposes of generating income for the Hospice’s charitable purposes. The whole of their taxable profit is donated to the Hospice under a Deed of Covenant within nine months of the year end. The specific activity of each of the trading subsidiaries is:

PAH Trading Limited (1925762) – sells new and promotional goods, as well as receiving commission on Agency Sales, provides catering services for the benefit of the Hospice and external users and undertakes other sundry trading activities.

Agency sales and sales of new goods resumed when the shops re-opened in April 2021. Catering services for visitors were only re-introduced once all of the Covid-19 restrictions were lifted. The business has shown a good recovery although profits are not yet at pre-pandemic levels.

PAH Lottery Limited (3347939) – operates lotteries. The lottery was less impacted by the pandemic but ticket sales through the shops did not recommence until September 2021. There continued to be a small decline in regular subscribers and plans are in place to address this in 2022/23.

----- Start of picture text -----
PAH PAH Total Total
Trading Ltd Lottery Ltd 2022 2021
Profit and loss accounts £ £ £ £
Turnover 184,108 481,250 665,358 595,067
Income 184,108 481,250 665,358 595,067
Cost of sales (100,563) (104,520) (205,083) (170,232)
Direct overheads - (33,669) (33,669) (42,384)
Administrative expenses (9,344) (45,414) (54,758) (38,105)
Expenses (109,907) (183,603) (293,510) (250,721)
Net profit 74,201 297,647 371,848 344,346
Amount covenanted to the Hospice (74,201) (297,647) (371,848) (344,346)
Retained in subsidiary - - - -
Previous year net profit (all covenanted to the Hospice) 29,363 314,983 344,346 -
Shareholder's funds
Share capital (issued) 100 1,000 1,100 1,100
----- End of picture text -----

4. Total expenditure

Direct Support Total Total Costs costs 2022 2021 (See note 1.6)	Direct Support Total Total Costs costs 2022 2021 (See note 1.6)	Direct Support Total Total Costs costs 2022 2021 (See note 1.6)	Direct Support Total Total Costs costs 2022 2021 (See note 1.6)	Direct Support Total Total Costs costs 2022 2021 (See note 1.6)	Direct Support Total Total Costs costs 2022 2021 (See note 1.6)
£ £ £ £
In-patient care Princess Alice at home Community engagement and support Education Raising donations and legacies Fundraising events Retail shops		2,956,286 2,999,996 481,158 475,330 557,135 139,326 5,407,501	1,804,821 828,147 163,883 325,726 409,565 - 299,976	4,761,107 3,828,143 645,041 801,056 966,700 139,326 5,707,477	5,011,016 3,698,611 569,383 776,909 930,301 131,327 4,698,979
Trading subsidiaries		13,016,732 281,639	3,832,118 -	16,848,850 281,639	15,816,526 246,129
		13,298,371	3,832,118	17,130,489	16,062,655

Analysis of support costs: Basis of apportionment Group Group 2022 2021
£ £
Governance Housekeeping Catering Facilities and health & safety People services Volunteering Information technology Marketing and communication Digital and data Executive, finance and administration Amortisation/depreciation (excluding retail)	Time spent Time spent Resource allocated Resource allocated Head count Resource allocated Time spent Resource allocated Time spent Time spent Resource allocated		30,033 541,351 281,572 394,767 265,670 103,800 418,260 314,971 187,526 696,067 598,101 3,832,118		34,465 526,368 260,011 441,833 209,749 98,345 301,663 318,574 273,629 699,569 602,265 3,766,471
Group Group 2022 2021 The above figures include: £ £ Auditor's remuneration - statutory audit 20,503 17,220 - other services 4,370 4,350 Operating lease rentals: For charitable activities: Equipment 25,312 31,350 For generating funds: Leasehold retail shops 1,561,717 1,441,120 Amortisation/depreciation of owned assets 725,253 691,141

5. Designated funds

The Fixed Asset Equalisation Fund represents the net book value of tangible and intangible fixed assets. This assists in identifying funds which are not free for the Trustees to use. The transfer of £429,504 out to (2021: £504,643 out to) unrestricted funds represents the difference between net capital expenditure and depreciation.

The Running Costs Reserve is intended to provide adequate reserves to meet future charitable expenditure in the event of a significant short-term drop in income. The Trustees are targeting a level of 9 months +/- 3 months budgeted charitable expenditure. A transfer of £300,000 (2021: £2,796,000) has been made in from unrestricted funds. The balance on this fund is 12 months (2021:12) of the Hospice’s budgeted cash expenditure on charitable activities for 2022/23.

The Strategic Development Reserve has been established to support the delivery of the Hospice’s strategic objectives. There has been no transfer into the reserve from unrestricted funds in the year (2021: £983,442). No expenditure was incurred in the year (2021: £Nil). The Hospice’s new strategy was launched in April 2022 and the Trustees have agreed a number of strategic change projects starting from April funded from this reserve. The reserve is expected to be fully expended over the next three years and expenditure of up to £600,000 has been agreed for 2022/23.

The Sustainable Building Development Fund has been established to cover the cost of bringing the older part of the Hospice building, which is now 16 years old, up to modern standards of energy efficiency and to make it fit for purpose for new ways of working. It will also fund sustainable building development initiatives, as they are identified, to meet our sustainability goals. A transfer of £500,000 has been made in from unrestricted funds (2021: nil).

The Staff Wellbeing Fund has been established to fund initiatives to improve workforce wellbeing and engagement. Expenditure of £7,261 (2021: £Nil) was incurred during the year on providing an Employee Assistance Programme through BUPA, delivering a Wellbeing Week and a staff summer party.

6. Restricted funds

----- Start of picture text -----
Group and Hospice
Balance Income Expenditure Transfers Balance
2021 2022
£ £ £ £ £
Ward equipment fund 20,631 3,520 (161) (10,818) 13,172
Children in Need project - 9,670 (9,670) - -
Community Choir 1,500 - (1,500) - -
Bereavement Service 3,262 21,200 (21,151) - 3,311
Wellbeing 664 3,750 (33) - 4,381
Rapid response nurse - 50,000 (50,000) - -
Enhanced support service 5,769 48,771 (23,523) - 31,017
Hospice at Home 26,904 - (26,904) - -
Compassionate neighbours 4,549 10,000 (10,000) 4,549
Man Shed 5,155 10,000 (5,804) (2,083) 7,268
Covid visitor coordinator 7,366 - (4,794) - 2,572
NHS England - patient care - 2,049,130 (2,049,130) - -
In-patient unit general - 50,000 (50,000) - -
In-patient unit refresh - 40,300 (40,300) -
Garden - 15,100 (3,346) - 11,754
Other Funds 2,269 50 (479) - 1,840
78,069 2,311,491 (2,256,495) (53,201) 79,864
----- End of picture text -----

The policy of the Trustees is to treat donations given for specific purposes as Restricted Funds until properly expended. The funds shown are those which were directed by donors to be used for specific purposes and are unexpended at 31 March 2022. These funds will be used in accordance with the directions of the donors in a subsequent accounting period.

7. Endowment funds

7. Endowment funds	7. Endowment funds	7. Endowment funds	7. Endowment funds	7. Endowment funds
Group and Hospice
Balance Balance 2021 Income Expenditure 2022 Movement in resources
£ £ £ £
The Edwin Stevens fund The D.J. Squires “Love of Roses” fund The June Daphne Allen fund	40,000 20,000 845,041	40 20 845	(40) (20) (845)	40,000 20,000 845,041
	905,041	905	(905)	905,041

The Edwin Stevens fund relates to a permanent capital contribution received on establishment of the Hospice. The D.J. Squires Love of Roses fund was established in 1996, the income from which is to be used for the research and advance of palliative care. The June Daphne Allen fund was created by the conditions of a legacy received in July 2001, the income from which is to be used for the general purposes of the Hospice. All income arising from these funds was expended during the year.

8. Comparative results for each group of funds

Year ended 31 March 2021 Unrestricted Designated Restricted Endowment Total funds funds funds funds funds 2021	Year ended 31 March 2021 Unrestricted Designated Restricted Endowment Total funds funds funds funds funds 2021	Year ended 31 March 2021 Unrestricted Designated Restricted Endowment Total funds funds funds funds funds 2021	Year ended 31 March 2021 Unrestricted Designated Restricted Endowment Total funds funds funds funds funds 2021	Year ended 31 March 2021 Unrestricted Designated Restricted Endowment Total funds funds funds funds funds 2021	Year ended 31 March 2021 Unrestricted Designated Restricted Endowment Total funds funds funds funds funds 2021
Income £ £ £ £ £
Donations Legacies NHS grants NHS England Covid-19 emergency funding NHS Covid-19 local response funding NHS service funding NHS continuing healthcare funding Education Retail shops Fundraising events Trading subsidiaries Investments Coronavirus retail grants Coronavirus job retention scheme Other income	2,369,906 2,943,798 2,095,908 - - 278,519 62,190 132,902 1,544,272 397,182 595,067 51,842 531,940 1,302,403 10,942	- - - - - - - - - - - - - - -	193,934 - - 6,276,936 289,529 - - - - - - - - - -	- - - - - - - - - - - 91 - - -	2,563,840 2,943,798 2,095,908 6,276,936 289,529 278,519 62,190 132,902 1,544,272 397,182 595,067 51,933 531,940 1,302,403 10,942
Total income	12,316,871	-	6,760,399	91	19,077,361
Expenditure £ £ £ £ £
Raising donations and legacies Retail shops Fundraising events Trading subsidiaries In-patient care Hospice at Home Community engagement and support Education	930,301 - 4,698,979 - 131,327 - 246,129 - 1,252,205 - 779,667 - 476,710 - 776,907 -		- - - - 3,758,722 2,918,944 92,673 -	- - - - 89 - - 2	930,301 4,698,979 131,327 246,129 5,011,016 3,698,611 569,383 776,909
Total expenditure	9,292,225	-	6,770,339	91	16,062,655
Net gain on investments	437,365	-	-	-	437,365
Net income/(expenditure)	3,462,011	-	(9,940)	-	3,452,071
Transfer to designated funds Transfer from restricted funds	(3,274,799) 2,243	3,274,799 -	- (2,243)	- -	- -
Net movement in funds	189,455	3,274,799	(12,183)	-	3,452,071

9. Intangible assets

9 Intangible assets	9 Intangible assets
.
Total 2022
Cost £
At 1 April 2021 Purchases Disposals	492,316 17,019 (9,231)
At 31 March 2022	500,104
Amortisation
At 1 April 2021 Charge for year Disposals	381,334 56,134 (9,231)
At 31 March 2022	428,237
Net book value
At 31 March 2022	71,867

At 31 March 2021	110,982

10. Tangible fixed assets

----- Start of picture text -----
Group and Hospice
Freehold Freehold Leasehold Furniture, Total
land buildings buildings equipment 2022
and vehicles
Cost or valuation £ £ £ £ £
At 1 April 2021 71,586 12,164,021 526,288 2,165,737 14,927,632
Purchases - 83,536 18,505 185,319 287,360
- -
Disposals (67,299) (249,504) (316,803)
At 31 March 2022 71,586 12,247,557 477,494 2,101,552 14,898,189
Depreciation
-
At 1 April 2021 6,748,757 248,382 1,728,543 8,725,682
-
Charge for year 439,031 90,770 139,318 669,119
- -
Disposals (67,299) (249,504) (316,803)
At 31 March 2022 - 7,187,788 271,853 1,618,357 9,077,998
Net book value
At 31 March 2022 71,586 5,059,769 205,641 483,195 5,820,191
At 31 March 2021 71,586 5,415,264 277,906 437,194 6,201,950
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11. Investments

2022 2021 Marketable investments £ £	2022 2021 Marketable investments £ £	2022 2021 Marketable investments £ £
Market value at start of year 3,007,844 2,536,839 Net additions at cost 441,108 1,146,356 Disposals at market value (409,999) (1,112,716) Net (loss)/gain on revaluation/disposal 164,758 437,365 Market value at 31 March 3,203,711 3,007,844 Trading subsidiaries (see Note 3) 1,100 1,100 Total investments 3,204,811 3,008,944 Cost at 31 March 2,562,875 2,494,557 2022 2021 Marketable investments comprise: £ £
Equities 1,610,606 1,536,927 Fixed Income 498,064 476,230 955,449 794,708 Short term deposits and cash 139,592 199,979 Other securities (absolute return funds, multi-asset funds, property funds, etc.)
3,203,711 3,007,844
12 Stock
.
2022 2021 Group
£ £
Stock of promotional and new goods (all stock is held by PAH Trading Limited)	16,732	28,594

13. Debtors

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Group Hospice
2022 2021 2022 2021
£ £ £ £
Operating debtors 404,647 234,119 414,564 234,119
Accrued legacy income 2,926,436 2,472,085 2,926,436 2,472,085
Gift Aid recoverable 437,695 76,370 437,695 76,370
NHS England Covid-19 funding 1,682,811 1,184,223 1,682,811 1,184,223
Retail rents prepaid 388,585 404,230 388,585 404,230
- -
Insurance pre-paid 114,740 114,740
Coronavirus Retail Grants - 84,143 - 84,143
Coronavirus Job Retention Scheme - 160,495 - 160,495
Other debtors and prepayments 363,184 187,325 359,869 173,896
Amounts due from subsidiaries - - 249,028 228,693
6,318,098 4,802,990 6,573,728 5,018,254
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14. Creditors

2022 2021 2022 2021 Group Hospice	2022 2021 2022 2021 Group Hospice	2022 2021 2022 2021 Group Hospice	2022 2021 2022 2021 Group Hospice	2022 2021 2022 2021 Group Hospice
£ £ £ £
Taxation and social security costs Salaries and holiday pay Operating creditors NHS grants paid in advance Other creditors and accruals	235,604 56,268 377,053 171,123 549,467	223,834 94,481 186,880 - 395,618	235,604 56,268 372,253 171,123 445,637	223,834 94,481 185,869 - 293,825
	1,389,515	900,813	1,280,885	798,009

15. Staff remuneration

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Group
2022 2021
Costs £ £
Salaries 10,599,134 10,289,040
Employer's National Insurance 937,950 902,067
Pension costs 623,568 632,316
Apprenticeship Levy 37,778 36,415
Agency staff 94,801 50,244
Recruitment and training expenses 114,162 90,877
Subsidiary companies staff costs 33,669 42,384
12,441,062 12,043,343
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Group
2022 2021
Headcount FTE Headcount FTE
Average number of employees
In-patient unit 62 48 60 49
Hospice at home 63 46 62 47
Community engagement and support 10 8 12 10
Consultants and doctors 9 6 10 7
Clinical administration 16 11 15 11
Therapies 3 1 5 2
Housekeeping 20 15 18 14
Other support services 31 23 26 21
Education 11 8 10 7
Marketing and communication 8 6 9 6
Fundraising 15 13 14 12
Digital and technology 6 5 7 6
Retail 153 109 171 118
Executive and finance 9 7 9 7
416 306 428 317
Group
2022 2021
The number of employees whose earnings (excluding employer's pension
contributions) fell into the bands below were: No. No.
£60,000 to £69,999 4 2
£70,000 to £79,999 3 1
£80,000 to £89,999 3 4
£90,000 to £99,999 1 -
£100,000 to £109,999 1 1
£130,000 to £139,999 - 1
----- End of picture text -----

*The pay of the Chief Executive falls within this band.

Included in the number above are medical consultants, doctors and other senior clinical staff directly employed by the Hospice who are paid at a rate equivalent to the relevant NHS scale.

The key management personnel of the Hospice are the Trustees and the Senior Leadership Team (“SLT”). The SLT comprises the Chief Executive, Medical Director, Director of Patient Care and Strategic Development, Director of Digital, Communication, Marketing and Performance, Director of Income Generation, Director of Finance and Operations, Director of People Services and Organisational Development. They are subject to the same terms and conditions as other members of staff and do not receive any additional employee benefits. They are only reimbursed for expenses wholly and necessarily incurred for business purposes in accordance with Hospice policy. The total employee benefit (salary and employer’s pension contribution) received by the SLT was £629,355 (2021: £630,382)

The Trustees are the directors for the purposes of the Companies Act 2006 and, as required by the Articles of Association, are the members of Princess Alice Hospice, a Company limited by Guarantee. They receive no remuneration. During the year to 31 March 2022 they were reimbursed for expenses of £292 (2021: nil).

An aggregate payment of £37,658 (2021: £55,751) was made to 6 ex-employees (2021: 4) under a settlement agreement. An aggregate payment of £7,849 (2021: £9,498) was made to 6 (2021: 3) employees on redundancy in respect of statutory redundancy pay.

16. Related Party Transactions

During the year ended 31 March 2022, the aggregate amount of donations received from Trustees and their close family members, the SLT and their spouse/partner was £7,981 (2021: £4,126).

The Trustees volunteer their time to fulfil their governance and leadership role. They provide support and advice to the SLT, which took the form of increased communication during the rapid fluctuations of the pandemic when staff and patient safety was paramount. They have continued to attend internal and external meetings, Hospice events and external events, in person where possible but otherwise virtually during the year. The Trustees estimate that during the year they donated over 2,000 hours of time in aggregate.

Gail Cookson, Trustee, is an International Director of WPNC a company providing direct marketing services. During the reporting period WPNC did not provide any services to the Hospice (2021: £28,430). There was no balance outstanding at 31 March 2022 (2021: £Nil).

During the year to 31 March 2022 the Hospice invoiced PAH Trading Limited for £7,876 (2021: £2,431) for the use of retail shop facilities to sell goods on behalf of supporters (Agency Sales) and £3,995 (2021: £2,161) for the preparation of sandwiches to sell in the coffee shop.

17. Analysis of net assets between funds (Group)

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Unrestricted Designated Restricted Endowment Total Total
funds funds funds funds 2022 2021
£ £ £ £ £ £
Fixed assets - 5,892,058 - - 5,892,058 6,312,932
Investments - 2,298,670 - 905,041 3,203,711 3,007,844
Current assets 2,918,860 10,572,367 79,864 - 13,571,091 11,375,780
Current liabilities (1,389,515) - - - (1,389,515) (900,813)
- - -
Annuity provision (99,000) (99,000) (99,000)
1,430,345 18,763,095 79,864 905,041 21,178,345 19,696,743
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18. Other financial commitments

18 Other financial commitments	18 Other financial commitments	18 Other financial commitments	18 Other financial commitments	18 Other financial commitments
.
2022 2021 2022 2021 Retail Shops Equipment
£ £ £ £ At 31 March 2022 the Group was committed to making the following payments under non-cancellable operatingleases:
Operating leases which expire: Within 1 year Within 2 to 5 years After 5 years	1,070,088 2,231,398 829,950	1,369,671 2,700,167 1,042,935	1,990 22,924 -	30,623 - -
	4,131,436	5,112,773	24,914	30,623

19. Simplified income and expenditure statement

Notes	Notes	2022 2022 2021 2021 Group Group	2022 2022 2021 2021 Group Group	2022 2022 2021 2021 Group Group	2022 2022 2021 2021 Group Group	2022 2022 2021 2021 Group Group	2022 2022 2021 2021 Group Group
Income		£ £ £ £
NHS grants Voluntary income Legacies Donations Cost of generating voluntary income Fundraising events Cost of fundraising events Trading subsidiaries Cost of trading subsidiaries Retail Retail income Coronavirus Retail Grants Coronavirus Job Retention Scheme Income attributable to retail Cost of retail Retail contribution NHS England Covid-19 funding Investment income NHS service funding NHS local Covid response funding NHS continuing healthcare funding Education Coronavirus Job Retention Scheme (ex. retail) Other	1.4 1.4 1.4 4 1.4 4 3 3 2 4 1.4 1.4 1.4 1.4 1.4 1.4 1.4 1.4	2,311,295 (966,700)	2,106,148 3,840,693 1,344,595 310,285 383,719 570,636 2,049,130 52,731 322,963 - 55,183 240,286 16,768 59,054	19% 34% 12% 3% 3% 5% 18% 0.6% 3% 0.5% 2% 0.1% 0.5%	2,563,840 (930,301)	2,095,908 2,943,798 1,633,539 265,855 348,938 (1,425,336) 6,276,936 51,933 278,519 289,529 62,190 132,902 104,972 10,942	16% 23% 12% 2% 3% -11% 48% 0.4% 2% 2% 0.5% 1% 1% 0.1%
		449,611 (139,326)			397,182 (131,327)
		665,358 (281,639)			595,067 (246,129)
		6,042,851 200,963 34,299			1,544,272 531,940 1,197,431
		6,278,113 (5,707,477)			3,273,643 (4,698,979)

Net income			11,352,191	100%		13,070,625	100%
Expenditure Charitable activities In-patient care Princess Alice at home Community engagement and support Education	4 4 4 4	(4,761,107) (3,828,143) (645,041) (801,056)	(10,035,347)	47% 38% 7% 8%	(5,011,016) (3,698,611) (569,383) (776,909)	(10,055,919)	50% 37% 5% 8%

Total expenditure on charitable activities			(10,035,347)	100%		(10,055,919)	100%

Operating surplus			1,316,844			3,014,706

WHO’S WHO

Trustees

Professor Sean Hilton

Chair (from September 2021)

Sean is Emeritus Professor at St George’s, University of London. He was a GP partner for 30 years in Kingston upon Thames.

Jeannine Nolan

Vice-Chair (from September 2021)

Jeannine has over 30 years’ experience in the healthcare communications sector, working with leading pharmaceutical companies and global agencies.

Despina Don-Wauchope

Honorary Treasurer

Despina is a Chartered Management Accountant and has more than 30 years’ experience working for a number of FTSE100 companies.

Deborah Bowman MBE

Deborah is an Emeritus Professor of Medical Ethics and Law and a Clinical Ethicist who has combined a successful academic career with effective and values-based senior leadership in Higher Education.

Gail Cookson

With over 30 years’ experience in fundraising, Gail has been a director of WPNC for 18 years.

Monica Harding

Monica has worked as a CEO, Director and consultant in the UK and internationally across government, charity and business sectors.

Tim Hewens

Tim is a solicitor and a partner at Osborne Clarke LLP where he specialises in M&A and Private Equity. He was previously a trustee of Walton Charity and of the RG Foundation.

Andrew Jennings

Andrew is retired following a career as a Chartered Accountant in the City where he spent over 30 years in International Law management.

Heather Patel

Heather is a recently retired GP with 35 years’ experience. Her practice was in Claygate where she worked closely with the Princess Alice Hospice on behalf of her patients.

Karen Roberts

Karen has over 30 years’ experience of managing Human Resources in global companies, specialising in talent management and workforce planning.

Christopher Roshier (to September 2021)

Christopher is a retired chartered accountant with 20 years’ experience working in the City as a merchant/investment banker.

Fiona Ross CBE (to September 2021)

Fiona is Emeritus Professor and former Dean at Kingston University and St George’s, University of London; she is also a Governor of Westminster University.

Jamie Tolentino-Deludet

Jamie has extensive experience in digital marketing and innovation. She helps the traditional industry of financial services become digitally enabled.

Sean Watson

Sean is a Solicitor and formerly a Corporate Finance partner in International Law Firm CMS Cameron McKenna and a Non-Executive Director of 2 Listed FTSE companies. He is a founding Trustee of Dovedale Foundation, a family charitable foundation.

Darren Webb

Darren has nearly 20 years’ experience in Financial Markets working for a number of international businesses. He currently works for the Bank of Montreal in London.

Dr Peter West

Peter is a health economist with over 40 years’ experience working for consulting groups, universities and government agencies across the world.

Honorary President

Jane Formby MBE

Jane has been involved with the Hospice for over 30 years, first as a volunteer then as a founding Trustee. Jane stepped down as a Trustee in 2018 and took up the role of Honorary President.

Committee Advisory Members

Rob Aldous, Director of Kingston Hospital Charity – Income Generation Committee

Duncan Burton, Deputy Chief Nursing Officer for England - Clinical Strategy and Governance Committee

Jon Cunliffe, Chief Investment Officer, Charles Stanley – Audit and Risk Committee

Karen Frend , Deputy Head of Central Governance at the Cabinet Office – Audit and Risk Committee

Ros Irving, Member of Group Management Board, Euromoney Institutional Investor PLC – People and Communities Committee

Esther Kitto , Director of Clinical Operations (clinical drug development) – People and Communities Committee

Louise Mitchell, Regional Brand Manager COS – Income Generation Committee

Tim Moody , Head of Property, British Heart Foundation – Income Generation Committee

Maxine Obeng , Assistant Director East London NHS Foundation Trust and founder of Niche Careers Consultancy – People and Communities Committee

Monday Ugiagbe , Senior Lecturer in Nursing, Middlesex University – Clinical Strategy and Governance Committee

Representatives of the Friends of Princess Alice Hospice

Veronica Eagles – People and Communities Committee

Mary Houghton – People and Communities Committee

Senior Leadership Team

Nicki Shaw Chief Executive

Karen Garforth Director of People Services and Organisational Development

Angela Grimes Director of Income Generation

Lesley Munro Director of Patient Care, Community Engagement and Support (from May 2021)

Diane Rickwood Director of Finance and Operations and Company Secretary

Nigel Seymour Deputy Chief Executive, Director of Digital, Marketing, Communications and Performance

Lesley Spencer Director of Patient Care and Strategic Development (to May 2021)

Jennifer Todd Medical Director

Advisors

Cazenove Capital Management , 1 London Wall Place, London EC2Y 5AU Mazars LLP , 6 Sutton Plaza, Sutton Court Road, Sutton, Surrey, SM1 4FS Barclays Corporate , Ground Floor, Tagus House, Ocean Way, Southampton, SO14 3TJ

Special thanks to ……. Trusts

The Albert Hunt Trust The Ann Jane Green Trust The Anonymous Donor Trust The Basil Samuel Charitable Trust BBC Children in Need The Bookhams, Fetcham & Effingham Nursing Association The Brock Webb Trust The Catherine Lewis Foundation Charles Hayward Foundation Community Foundation for Surrey D'Oyly Carte Charitable Trust The Dandy Charitable Trust Dentons UKMEA LLP Charitable Trust The Diana Edgson Wright Charitable Trust Diocese of Arundel and Brighton Edwin George Robinson Charitable Trust The Elizabeth Frankland Moore & Star Foundation Emily Huffer Settlement The Erica Leonard Trust F G Roberts Charitable Trust Family Rich Charities Trust Farrer-Brown Charitable Trust Garfield Weston Foundation The Gerald Bentall Charitable Trust The Girdlers Company Grace Trust Hampton Fund Hargrave Foundation for A Brighter Future Holloway Charitable Trust The Hospital Saturday Fund Charitable Trust The Ingram Trust Inlight Trust Institute of Our Lady of Mercy The James Wise Charitable Trust The Joseph Strong Frazer Trust Kingston Nursing Association London Aged Christian Society Loseley & Guildway Charitable Trust The Margaret and David Walker Trust Mark Masons' Hall Masonic Charitable Foundation The Michael & Anna Wix Charitable Trust The National Lottery Community Fund Quartet Community Foundation

Ratcliffe Charitable Trust Rest-Harrow Trust Richmond Parish Lands Charity The Rowan Bentall Charitable Trust The Rozel Trust The Shirley & Ian Watson Charitable Trust The Souter Charitable Trust SSP Foundation Surrey Provincial Charity Fund The Three `T' Charity The Vernon N Ely Charitable Trust Wimbledon Foundation

Masons

Addlestone Lodge 5222 Clerkenwell Lodge of Installed Crescent Lodge No. 788 Elmbridge Lodge L5838 Hampton Lodge No 6435 Lodge Light From The East Lovekyn Chantry Lodge No 6807 Molesey Lodge Chapter 2473 OSM Masonic Group of Surrey RAOB New Venture St Georges Esher Lodge Surbiton Lodge No 2146 Surrey Provincial Grand Stewards' Chapter No. 8297

01372 468811 pah.org.uk

Princess Alice Hospice is a registered charity no: 1010930 and a company limited by guarantee in England and Wales no: 1599796. Registered as a US Tax Exempt charity under Section 501 (c) (3) IRC. © Princess Alice Hospice 2022 TAR | SEPTEMBER 2022

Princess Alice Hospice makes a difference

Our Vision

Our Mission

Contents

Chair and CEO report

How we improved our care and support in 2021/22

GOAL 1 We will be recognised for the outstanding care we provide

GOAL 2 We will nurture compassionate communities

We responded by:

Goal 3

We will share our knowledge and expertise and influence the debate around death and dying

Objectives for 2022/23

We have therefore developed four overarching priorities for our next strategic period that will support our vision and sustain and develop our vital work now and in the future:

PRIORITY 1

Developing and expanding our specialist care

PRIORITY 2

Empowering people in our communities to better support and care for people at the end of life

PRIORITY 3

Developing our education, research and learning programmes to improve quality and encourage and support innovation

PRIORITY 4

Enhancing our collaborative influence in palliative and end of life care through leadership and advocacy

SUSTAINABILITY AND RESILIENCE

Structure, governance and management

Objectives

How we are governed

Trustees

Impact of COVID-19

Board Committees

Trustee and Committee advisory member recruitment

Charity Governance Code

Senior Leadership Team

Remuneration Policy

Financial review

Legacies

NHS England COVID-19 funding

NHS grants

Fundraising and retail

Going concern

Reserves

Investments

Employees

Volunteers

Environmental reporting

SECR Reporting

Energy Related Mitigation Measures

Lighting

Heating, Ventilation and Air Conditioning

Energy Monitoring and Management

Renewables and Other Energy Reduction Measures

Transport

General

Areas for further development

Public benefit

Statement of Trustee’s responsibilities

Auditor

Fundraising Regulation

Standards and monitoring

Complaints

Managing communications

Our Fundraising Promise

Principal risks and uncertainties

Our Main Risk areas are:

Independent auditor’s report to the members of Princess Alice Hospice

Opinion

Basis for opinion

Conclusions relating to going concern

Other information

Opinions on other matters prescribed by the Companies Act 2006

Matters on which we are required to report by exception

Responsibilities of Trustees

Auditor’s responsibilities for the audit of the financial statements

Use of the audit report

Consolidated statement of financial activities (including income and expenditure account) For the year ended 31 March 2022

Balance sheets as at 31 March 2022

Consolidated cash flow statement for the year ended 31 March 2022

Notes to the Financial Statements

FOR THE YEAR ENDED 31 MARCH 2022

1. Accounting Policies 1.1 Basis of preparation

1.2 Group financial statements