**Cope Children’s Trust Trustees’ Annual Report and Accounts Year ended 31 March 2022** Company Number: 02743297 Registered Charity Number: 1014051
**We care for children, young people and families in the East Midlands – wherever they are. Hospice | Hospital | Home**
**Cope Children’s Trust - Trustees’ Annual Report and Accounts**
**Year Ended - 31 March 2022**
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## **Sections**
## **1. Introduction**
**Elijah’s story**
**2**
- **Who we are and what we do 3**
**Introduction from the Chairman**
- **4**
## **3. Statement on Fundraising Activities**
**4. Structure, Governance and Statement of Trustees’ Responsibilities**
## **5. Reference and Administrative Details**
## **2. Our Strategic Report**
**How we work**
**5**
## **6. Independent Auditor’s Report**
**Volunteers**
**Our priorities and objectives**
**6**
- **7**
## **7. Accounts and Notes to the Accounts**
**22**
- **Our achievements and performance 8**
**Looking ahead - 2022 and beyond 10**
**Principal risks and uncertainties**
**Financial review**
- **11**
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**Cope Children’s Trust - Trustees’ Annual Report and Accounts**
**Year Ended - 31 March 2022**
## **1. Introduction**
## **Elijah’s Story**
A brain injury has left Elijah unable to do anything for himself and needing round the clock care - but he embraces life with a smile on his face.
“I am constantly in awe of him,” said mum Lizzie. “Despite everything he faces, Elijah is an incredibly happy, cheeky and fun-loving little boy who just loves life.”
**Elijah was born 14 weeks early at just 2lbs 8oz and initial brain scans were promising. However at just four-weeks-old, a hernia caused a perforation in his bowel. Medics battled to save Elijah who was fi ghting for his life at Nottingham’s Queen’s Medical Centre. He was so poorly, his body had begun to shut down and his parents, Lizzie and Tim, were told several times he might not survive.**
“I think I have blocked a lot of this time out,” said Lizzie. “He was just four weeks old. We thought ‘we can’t lose him now’; everything had been going so well. He was transferred from Derby to Nottingham in the middle of the night. I was scared and I was terrifi ed. I still struggle to go to the Queen’s Medical Centre (QMC) now, it brings back so many painful memories and I fi nd it overwhelming.”
Amazingly Elijah pulled through but the injury to his brain caused widespread damage. He is unable to talk, eat or move independently. He is profoundly deaf and has frequent seizures.
When he was four-years-old, the family fi rst visited Rainbows and have been supported by us ever since. Elijah and his brother, Zach, love to visit our Hospice.
**“I was excited to see Rainbows and was wowed by it. Tim found it more overwhelming to start with but it had everything, and more, that we could wish for Elijah,” said Lizzie.**
**“Rainbows doesn’t feel at all how you expect a hospice might feel and is more about having fun and making precious memories together.**
“Elijah loves the Hydrotherapy Pool and the benefi t on his muscle tone has been huge. He thinks the waterbed and lights in the Multisensory Room are great fun and thoroughly enjoys being in the garden where he can use the accessible swing and roundabout.
**“As a family, we personally have benefi ted from Family Support services, counselling and the home sitting services during Covid. The provision is amazing for all of us, we wouldn’t be without Rainbows.**
“My professional background is in nursing where I worked with children with very complex health needs. I had supported families like ours for so long, and all of a sudden, we are on the other side of the fence. No amount of training could have prepared me for that.
**“I like to think I was always a good nurse but actually, I had no idea what those families went through on a day-to-day basis. I don’t think you can truly understand that unless you are living it. Rainbows helps us to get through the tough times and, along with so many other families, we rely on their support.”**
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“Elijah loves the
Hydrotherapy
Pool and the
benefi t on his
muscle tone has
been huge.”
Elijah’s Mum
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**Cope Children’s Trust - Trustees’ Annual Report and Accounts**
**Year Ended - 31 March 2022**
We provide the following services as part of the holistic care to our users
## **Who we are and what we do**
Cope Children’s Trust is a registered charity which is based in Loughborough, Leicestershire. The charity operates Rainbows Hospice for Children and Young People. The Hospice based at Lark Rise provides care and support for children and young people who have a life-limiting or life-threatening illness and for their families from across the East Midlands.
Rainbows opened its doors in 1994, was offi cially opened by Prince Charles in 1995 and in 2019 celebrated 25 years of care.
## **Our Vision**
The Rainbows Experience wherever you are.
## **Our Mission**
Across the East Midlands we will:
- transform care for those children and young people who have a life-limiting or life-threatening condition
- relieve the pain and symptoms associated with life-limiting or life-threatening conditions
- support every child and young person to achieve their full potential
**End of Symptom Respite Life Care Control Care Music Physiotherapy Multi-sensory Therapy Complementary Family Neo-natal Therapy Support Support At Home Bereavement Social Support Support Support Services Rainbows Sibling Complex Nurses in Support Care**
**Hydrotherapy**
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Specialist Play
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**Neo-natal Youth Support Support**
**Psychological support**
**Rainbows Outreach Nurses in Support Hospitals**
- create memories for families to treasure
- provide comfort and compassion at the time of and following the death of a child or young person
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**Cope Children’s Trust - Trustees’ Annual Report and Accounts**
**Year Ended - 31 March 2022**
## **Introduction from the Chairman of the Board of Trustees**
“May you live in interesting times” has often been used as a familiar quote. Whether this is true or not, it is certainly the case that we all are living in what can be conservatively defi ned as interesting times.
Along with everyone else, I suspect, the people involved with Rainbows took their fi rst tentative steps, collectively and individually, out of the terrible shadow of Covid towards what we hoped would pass for something resembling the normality that we had been missing for over two years. Yet we are now faced with another bout of uncertainty and restriction brought about by confl ict in the Ukraine and associated shortages and spiralling costs.
Rainbows as an organisation is in a better position than many. This is largely due to the generosity of our supporters, the skills and dedication of our staff and volunteers, the leadership of the management team and the governance and insight of the Trustees.
Our balance sheet remains strong, we have retained an excellent group of people and continue to enjoy strong support from stakeholders and the families we support.
As such, whilst we will inevitably have to show some caution, I am confi dent that we can further develop and grow the reach of our services to ensure that the children and young people of the East Midlands with life-threatening and life-limiting conditions, whatever their background, can benefi t from the Rainbows experience wherever they are.
I want to take a moment here to thank my fellow Trustees. The past couple of years have not been easy and the necessary reliance on video-conferencing has stretched relationships at times. However, I am pleased to say that we have stuck at it and continued to provide the Senior Leadership Team our support and challenge in equal measure. At this year’s AGM we will be bidding farewell to Joanne Brunner after 10 years as a Trustee. Those who have had dealings with Joanne will understand me when I say we will miss her wise counsel, passion and compassion as part of not just the Board but the wider Rainbows family.
I am constantly amazed and humbled by the skills, professionalism and dedication shown by all those involved in making Rainbows the special organisation that it is. The children, young people and their families constantly and consistently praise the support they receive from the care team. But we should not forget the whole host of staff and volunteers who also dedicate their time to contributing to what makes Rainbows special.
To you all, on behalf of the Board, I extend our gratitude and best wishes.
## **Paul Stothard - Chairman**
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**Cope Children’s Trust - Trustees’ Annual Report and Accounts**
**Year Ended - 31 March 2022**
## **2. Our Strategic Report**
## **How we work**
## **Organisation**
The Board has overall remained stable during the year. The Board met quarterly during the year with other away days or meetings as necessary including a strategy away day with the Senior Leadership Team. In between the Board Meetings both Governance Committees met. Both the Clinical Quality Assurance Committee and the Corporate Governance Committee have met four times during the year. The Audit Committee met during the year to receive the Auditor’s report on the Annual Report and Accounts. Due to Covid-19 restrictions and given that the majority of these meetings have been held and continue to be held virtually, Trustees have not been as visible to the staff and volunteers this year but it is hoped that we can engage their physical participation next year.
Our Senior Leadship Team welcomed Julia Bates to the role of Director of People in October 2021.
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Our care and other professional teams are committed to continuous professional development.
The Care Team are well qualifi ed and experienced and are supported by specialists in play, physiotherapy, complementary therapy and music therapy. The team are supported by dedicated administrators, housekeepers and catering staff .
Medical Support is provided by GP’s, Hospital and Community Paediatricians.
The charity has a Supporter Relations Team who raise the funds to enable the Charity to carry out its charitable purpose.
The Business Resources and People Teams provide support functions to the Hospice such as fi nance, IT, estates, facilities, health and safety, human resources and learning and development.
The charity continues to develop the role of the Operational Leadership Team involving the Heads of Department and members of the Senior Leadership Team. The Operational Team are integral to the decision making and performance monitoring processes. They are consulted on developments in strategy and policies and procedures.
## **Purpose built facilities**
We operate the charity and run the Hospice from the Rainbows site at Lark Rise in Loughborough. The Hospice is a purpose built unit that houses 14 bedrooms, two quiet rooms, a therapy suite, offi ces and extensive grounds with gardens for play and quiet refl ection. During 2022/23 we will be revisiting the footprint of Lark Rise to ensure we are making the most of available space and meeting environmental targets.
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**Cope Children’s Trust - Trustees’ Annual Report and Accounts**
**Year Ended - 31 March 2022**
## **Developing the next generation of Hospice professionals**
Rainbows supports a wide range of learning and development activities for staff and volunteers to meet mandatory requirements, develop role specific skills and address personal development needs identified through the appraisal process.
We have run a number of organisational development courses involving all staff and Trustees across the charity. This programme will continue.
During the year the charity fi nancially supported a nurse to attend the Masters course in Paediatric Palliative Care in Cardiff , and the knowledge they gain will be shared with colleagues back at the Hospice.
We work closely with local universities to support the needs of medical students. We support students on placement at Rainbows and off er clinical expertise, education and training in palliative care across the region and further afi eld.
We run palliative care courses at diff erent academic levels to meet the identifi ed training needs of internal staff and others external to Rainbows. We have also introduced a ‘monthly’ learning and development focus within the Care Team to ensure competence is maintained or to improve knowledge for new techniques.
## **Volunteers**
Without the generosity of the people and organisations of the East Midlands, Rainbows would simply not exist. Volunteers are an integral part of the Charity.
In addition to our regular active volunteers, we are also supported by many volunteers in the form of “friends” groups and individuals. They help us on an ad hoc basis with promoting Rainbows in their community, fundraising and event support, as well as organising their own fundraising initiatives.
In addition, we will continue to work alongside our volunteers based at Lark Rise.
In retail, we have continued our links with organisations to provide work placement opportunities through Kickstart for people looking to gain practical work experience. The positive benefi t of these links is that many participants have signed up as regular volunteers at the end of their placement.
Our volunteers are also recognised externally. An example of this being our gardening volunteers, who work tirelessly to keep our gardens looking amazing, winning the highest award in the “It’s Your Neighbourhood” category as part of the RHS Britain in Bloom campaign for a second time this year.
The Charity is committed to being a learning and development organisation. Two of the members of Supporter Relations have successfully completed the certifi cate in fundraising.
Covid-19 has presented us with opportunities to develop and enhance the skills of our nursing workforce by working in partnership with the NHS. We are continuing to develop, embed and utilise these skills in our future service provision proposals and remain committed to supporting the wider healthcare system by maintaining strong relationships built during this challenging time. We now provide Hospice Nurses in Hospitals and are developing our community and outreach model to ensure we continue to provide relevant services in a post Covid world.
**Covid-19 continued to limit our normal volunteer activity but collectively they still donated 19,011 hours to the hospice which is equivalent to approximately ten FTE’s. At an average annual salary, including on costs, this would value their time at £325,000.**
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**Cope Children’s Trust - Trustees’ Annual Report and Accounts**
**Year Ended - 31 March 2022**
## **Our priorities and objectives**
## **Purpose**
The purpose of the Charity, as set out in the governing document, is to provide the Rainbows experience to children, young people and families wherever they are: Hospice, Hospital or Home.
## **Aims**
To provide emergency palliative and end of life care and short breaks, to children and young people with life-limiting or life-threatening conditions and to provide family and bereavement support to their families.
## Across the East Midlands we will:
- transform care for those children and young people who have a life-limiting or life-threatening condition
- relieve the pain and symptoms associated with life-limiting or life-threatening conditions
- support every child and young person to achieve their full potential
- create memories for families to treasure
- provide comfort and compassion at the time of and following the death of a child or young person
The Hospice off ers dynamic forward-thinking services meeting ethnic, cultural, religious, spiritual, and care needs of those using the services.
## **Signifi cant Activities for Public Benefi t**
## **In Hospice Care**
Care at the hospice in Lark Rise is made available to all children and young people who meet the medical criteria laid down by the charity. Each has an allocation of nights they can attend the hospice during the year. We have slightly reduced the number of nights available due to increased demand for complex care and end of life stays.
Each child and young person has an individualised care plan that details all of their care needs and choices, including information about the ways in which they would like to communicate with their carers.
## **Outreach Service**
We continue to develop outreach services to include care and support in the home at the end of life, increasing our reach to all communities within the East Midlands.
## **Rainbows in Hospital**
We also support a number of hospitals with Rainbows Palliative Care Specialist Nurses in both the Neonatal and Paediatric Units. We provide expert clinical advice to staff and emotional support to families and staff .
## **Family Support**
Families of children with life-limited conditions are often overwhelmed by the challenge of caring for their children; the complexities of working with many professionals, services and appointments; the diffi culties of maintaining family life and employment; and can be isolated in the community. Accessing hospice care from Rainbows helps by providing them with relief from the day to day responsibility of care; expert care for their sick child and support for the whole family, including siblings.
When a child or young person is referred to Rainbows, a member of our Family Support Team will contact the family to talk about what they can expect from Rainbows. The team works in partnership with Community Nursing Teams and Social Care Providers to support families in the community, as well as when they are resident at the Hospice.
The Family Support Team off ers a range of services including spiritual and cultural support and benefi ts advice. We have a bereavement co-ordinator and counsellor who off ers support with end of life care planning and in all aspects of bereavement care.
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**Cope Children’s Trust - Trustees’ Annual Report and Accounts**
**Year Ended - 31 March 2022**
## **Our achievements and performance**
## **Getting full use of our facilities**
Normally we enable families to access the facilities on a number of weekends and make the facilities in our Therapy Wing available to some external groups, including other local charities and mother and baby groups. This unfortunately has not been possible over the past year.
Rainbows is an integral part of the East Midlands Children and Young People’s Palliative Care Network and hosts regular meetings throughout the year.
## **Statement on Public Benefi t**
The Charity provides public benefi t through the operation of a hospice for children and young people with life-limiting and life-threatening conditions and through the provision of family, community and bereavement support. The Trustees confi rm that they have complied with the duty in Section 4 of the Charities Act 2006 to have due regard to public benefi t guidance published by the Charity Commission in determining the activities undertaken by the Charity.
## **Criteria for measuring success**
The Trustees’ criteria for measuring success is to ensure the Charity continues to develop its services and reaches more children and young people who could benefi t from the services we off er. We also seek to ensure our operating costs are well controlled whilst maintaining the quality of service delivery and that we maintain a level of income and reserves to ensure the sustainability of the Charity.
## **Care**
We are now entering the second year of our fi ve year strategy, which will focus on increasing specialist nursing provision in hospitals and expanding our reach in the community. We continue to support the wider Health and Social Care system by providing hospital step down/transition services.
We reached out to more families across the East Midlands during the year and have continued to provide outstanding care at our Hospice in Loughborough. During the year, we continued the work of providing care for some of our region’s most poorly children. And once again, this care was made possible because of the ongoing support we receive from our donors.
We continue to work with adult hospices and other services on ways in which we can successfully transition our young adults.
We recognise that we only reach 33% of those children who could benefi t from Rainbows within the East Midlands and part of our strategic aim going forward is to increase the number of children we reach.
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**Cope Children’s Trust - Trustees’ Annual Report and Accounts**
**Year Ended - 31 March 2022**
## **Care Continued**
Despite the ongoing pandemic, below are some of the services we provided always ensuring theses were in line with the latest Government guidelines. More details can be obtained from our 2022/23 Quality Account.
- end of life care
- symptom control
- step down beds to support the NHS
- developed and implemented hospice at home services
- Rainbows in Hospital
- 66% of total referrals related to neo-natal
- provided virtual family support to an average of 100 families per day
## **Investing in Technology**
Implementation of our IT strategy has gathered pace over the past year. Having switched our external IT provider to Blaze Networks we have invested in a new private managed network, a new wifi system, migrated to cloud hosted servers and implemented a new care database, SystmOne. During the coming year we look to implement a new HR and recruitment system, improve the entertainment experience for all children and young adults at Lark Rise as well as embracing Offi ce 365 and the use of SharePoint to its full potential. We continue to benefi t from the continued support of our Trustee, David Wilson, for his valued guidance and support.
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**Cope Children’s Trust - Trustees’ Annual Report and Accounts**
**Year Ended - 31 March 2022**
## **Looking ahead - 2022 and beyond**
Having obtained Board approval for rolling out our nurses in hospitals we have been rather preoccupied with the day to day impact of Covid-19. However, we remain committed to extending our reach in the future by increasing the number of nurses within hospitals as well as increasing Rainbows services at Lark Rise and in the community.
Learning from the Covid-19 crisis has shown us that there is much room to develop our technology and use of it to improve service delivery as well as communicating and recording data. We have proven that we can work from home, so what do we do with the offi ces at Lark Rise?
We have reinstated all short break services at the Hospice and are continuing to provide hospice at home services developed during the pandemic. We will be further developing our Community and Outreach services following an in depth review of the needs of children, young people and families.
The continuance of social distancing will be a part of our everyday life and we need to bear that in mind when planning services.
**Sadly, some children just don’t live long enough.**
Since 1994 we have opened our doors and hearts to those children, young people and the people who love them most. And now more than ever, we need your help to keep on bringing care and happiness to our children, young people and their families.
**Help brighten short lives**
As we emerge from the Covid-19 crisis there are likely to be opportunities to develop further partnerships and the potential for more commissioned services in the future.
It is important that the links we have built up through the crisis are not lost but built on to work in true partnership with other professionals and the wider health and social care community. Rainbows is not an island but a part of the health community and the wider community.
It is important we hear the voice of the child and the family in all of our strategic decisions and changes to services. We must ensure we build services based on the changing needs of our community and the evidence from research such as Lorna Fraser’s ‘Making Every Child Count’.
We will be developing systems to ensure ‘the voice of the child’ is heard by implementing the 15 steps challenge and the Voice of the Child Survey in 2022.
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**Cope Children’s Trust - Trustees’ Annual Report and Accounts**
**Year Ended - 31 March 2022**
## **Principal risks and uncertainties**
Through the risk management processes established for the charity, the Trustees are satisfi ed that the major risks identifi ed have been adequately mitigated where necessary.
Major risks are identifi ed and ranked in terms of their potential impact and likelihood; there are those which have a high likelihood of occurring and would, if they occurred, have a severe impact on the operational performance, achievement of aims and objectives or could damage the reputation of the charity, changing the relationship between Rainbows and our Trustees, supporters or benefi ciaries.
an assessment of the likelihood of each of those events arising and the potential consequences for the charity of not being able to meet them are also considered.
Low risks have been brought together in a “low risk register” so that we do not lose sight of these risks even if we consider them to have a low severity or impact at the time they were considered.
The Covid-19 crisis has presented the charity with signifi cant risks to its staff , volunteers and users if they should contract the virus. There is also potential risk to our income streams as we emerge from the pandemic and seek clarity on whether the economic downturn has impacted our donors, funders and supporters. The Executive Team are working on alternative income streams to mitigate this risk going forward.
As a charity providing care for children, young people and their families all staff have a responsibility to ensure the safeguarding of children, young people and vulnerable adults. In order to fulfi ll our responsibilities and mitigate risks, DBS checks are routinely performed on new and existing staff and volunteers where appropriate to do so. Trustees, staff and volunteers attend statutory and mandatory training, adhering to local Safeguarding Children and Adults Boards’ policies and procedures and inter-agency guidance. The Charity has appropriate policies and procedures in place, employs a Safeguarding Lead and the Executive Nurse and Director of Clinical Operations has responsibility for oversight of this activity.
The annual review has identifi ed only a few minor risks but this has resulted in improved procedures and contingency plans and has given the impetus for better planning. Particular attention was focused on non-fi nancial risks which might arise from shortages of qualifi ed and experienced staff which could aff ect the charity’s ability to comply with healthcare requirements. From an employment perspective, the charity aims to recruit and maintain a motivated, skilled workforce, providing training and support as appropriate. We maintain high standards in employment practices to ensure the fair and effi cient use of our most valuable asset, our people.
A key element in the management of fi nancial risk is the setting of a reserves policy and its regular review by the Trustees. The policy is informed by forecasts of future income levels, expenditure in future years, and an analysis of future needs, opportunities and contingencies of risk. If and when these risks arise,
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**Cope Children’s Trust - Trustees’ Annual Report and Accounts**
**Year Ended - 31 March 2022**
## **Financial Review**
Results for the year ended 31 March 2022 are shown in the Consolidated Statement of Financial Activities on page 22. This, together with the Consolidated Balance Sheet on page 23, should be read in conjunction with the related notes which have been produced in accordance with the Charities SORP (FRS102).
The Trustees are pleased with the result for the year recognising the continuing impact from the Covid-19 pandemic and the uncertainties and challenges this has presented.
## **Where our income came from in 2021/2022**
Total income in the year grew by 11.1% from £7,180,000 to £ 7,976,000, which is an excellent result for the year in the current climate.
The above increase includes £625,000 from a signifi cant major donor.
All of our supporters, donors, funders and volunteers are incredible and never fail to amaze us with their dedication and commitment to helping the children, young people and families that we support at Rainbows. We cannot thank enough each and every one of them for all they do and give in support of our cause.
Staff employment costs were the largest item of expenditure in the year at 70% of total costs, and they represent the salaries of the care team within the hospice and the team of staff who provide support throughout the hospice and in the community.
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Every pound we raise Every pound we spend is
is given by you: spent carefully:
8p
5p 17p
Retail
Events and 2p Raising
Challenges 17p Events and costs the next £1
7p NHS support
Retail sales Challenges
12p
8p Hospice
17p Grants facilities
Gifts from Of every
Of every
in wills £1 raised... Trusts £1 spent... 3p
Lottery
8p costs
Lottery
38p
58p
Voluntary
Care and Family
donations
Support Teams
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Thank you so very much.
## **How we spent your money in 2021/2022**
Total expenditure during the year increased by 10.9% from £5,986,000 to £6,642,000.
Expenditure on fundraising activities has increased to £2,064,000 from £1,634,000 in the previous year.
Overall charitable spending increased during the year from £4,350,000 to £4,565,000 and is 69% of the total expenditure for the year (2021 73%).
We aim to maximise the value of all donations by obtaining best value for money on all our operating costs. We exercise restraint on pay increase costs having due regard to the economic climate and other sector awards. Cost savings are never made at the expense of the quality of care we provide.
## **Investment Policy**
The Trustees, having regard to the liquidity requirements of operating the hospice and to the reserves policy, have operated a policy of keeping a large proportion of available funds in interest bearing deposit accounts and seek to achieve a rate of deposit interest which matches or exceeds infl ation. However, the Trustees have placed the security of cash deposits above possible fi nancial return. Where monies are available that are not needed to fund immediate charitable activities, the Trustees have appointed investment managers on a discretionary basis. Regular communication is maintained between the investment managers and the Corporate Governance Committee relating to all portfolio changes. The Trustees exercise the “duty of care” described in the Trustee Act 2000 with regards to all investments.
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**Cope Children’s Trust - Trustees’ Annual Report and Accounts**
**Year Ended - 31 March 2022**
## **Reserves Policy**
The charity’s reserves are detailed in note 17 and 18 to the accounts.
The review of current and future predicted reserves, in line with forecast management accounts performance and cashfl ow requirements, demonstrates robustness and reassurance in relation to the preparation of the fi nancial statements on a going concern basis.
The Trustees have established the level of reserves using the methodology outlined in the Charity Commission Guidance so have considered the level of required reserves based on the assets used in the charity and the risk to the charity and likelihood of an event occurring. This ensures that where reserves are needed to bridge any funding gaps between running the hospice and income being received, and events, commitments or emergency requirements, funds are available. This enables us to continue our current activities and fund short term expenditure should external funding drop signifi cantly.
A review was carried out by the Director of Business Resources, the CEO and the Treasurer based on the Charity Commission Guidance on Reserves. The Trustees consider the level of required reserves to be £3,698,000 (2021 - £3,698,000) based on the report presented to them and agreed that both the policy and its implementation will be reviewed annually. The total free reserves at 31 March 2022 was £5,624,000 (2021 - £3,986,000). Note 18 details the analysis of reserves of the charity.
## **Review of subsidiary company performance**
Shop trading was only slightly interrupted at the start of April 2021 as a result of the Covid-19 pandemic. Company results are shown in note 12 to the accounts.
The charity has fi ve shops and their fi nancial performance improved collectively as a result of increased sales during the year. The subsidiary made a net profi t of £51,794 (2021 - £21,367) for the year.
The Directors continue to review the development of retail activities as we gain an understanding of the economic climate post lockdown restrictions.
## **Review of investment performance**
Brewin Dolphin and St James’s Place have acted as investment managers to the Trust during the year. Investments made by the advisors on our behalf are within the risk classifi cation “Cautious with Risk”.
This year the performance of the investment portfolio, which is benchmarked against the WMA Private Investors Income Index (Total Return), has performed lower than the benchmark. At the year end the portfolio refl ected a gain, on a total return basis, of 3.01% compared with the benchmark of 6.08%.
The Trustees carry out an annual review of the investment managers’ performance.
The Trustees consider it appropriate to retain the surplus reserves held for prudence in an uncertain economic climate and so that future strategic service developments can be pursued. We are in a positive position in that our surplus reserves will enable us to build our strategic aims in a sustainable way and allow for improvements in the utilisation of technology in our work. To facilitate these strategic aims Trustees have agreed to £2,741,000 of designated reserves.
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**Year Ended - 31 March 2022**
## **3. Statement on Fundraising Activities**
Rainbows has a team of fundraisers who are employed by the charity. This team of fundraisers, part of the Supporter Relations department, supports individuals and groups that fundraise on our behalf. They also raise funds from individual donors, events, companies and grant making bodies to secure the funds needed to keep the Hospice in operation year after year. The department is split into four teams which refl ect the diff erent focus areas for our fundraising activities.
The four departments are:
1. Individual Giving (which includes our lottery and gifts in wills)
2. Organisational Giving (focusing on companies and grant making bodies)
3. Community and Events
4. Retail
The teams all work collaboratively on all aspects of funding and work hard to ensure that we off er the best support we can to those who fundraise on our behalf. Our focus is to build long term meaningful relationships with our supporters.
In addition to our in-house team, we have a commercial contract in place with Burden and Burden for the recruitment of new lottery players, which enables us to grow the amount of money we raise from the lottery to fund our work. All Rainbows fundraising activity complies with the Code of Fundraising Practice.
Where fundraising activity is taking place on our behalf (for example Burden and Burden or supporters putting their own events on for us) we ask that the Codes of Practice are followed. In some cases (as required by the Code of Fundraising Practice) we insist on a Commercial Participator Agreement being signed by all parties. Rainbows is registered with the Fundraising Regulator.
There is no occurrence of non-compliance with the Fundraising code.
In the year ended 31 March 2022 there were no signifi cant matters of complaint that required further action.
The charity protects vulnerable people including its users by having appropriate checks and balances in our promotion of the charities fundraising activities to them and ensuring staff are aware of our responsibility in this area.
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**Year Ended - 31 March 2022**
## **4. Structure, Governance and Statement of Trustees’ Responsibilities**
## **Governing Document**
Cope Children’s Trust, operating as Rainbows Hospice for Children and Young People, is a registered charity and a Company limited by guarantee with one trading subsidiary, namely Cope Marketing Ltd. Rainbows Hospice in Loughborough is primarily engaged in the provision of specialist respite, symptom control, palliative and end of life care for children and young people with a life-limiting and life-threatening conditions. The governing document of the charity is the Articles of Association of the Company dated 2018. Having completed the review of the articles these were approved by the Board and the Charity Commission and adopted during 2019.
## **Charity Governance code**
The Charity has its own Framework for Board and Governance which is drawn up in line with the Charity Governance Code and there are no material departures there from.
## **Recruitment and Appointment of Trustees**
Trustees are appointed in accordance with the Articles of the Company and serve for an initial period of three years. An audit of the Trustees’ skills and a review of available skills is completed annually and also undertaken in relation to any vacant positions. All Trustees are also directors of the Company limited by guarantee. The articles state that all trustees serve a term of three years and may stand for two further terms. Thereafter Trustees may be elected for further periods on an annual basis.
Trustees may from time to time elect a Chair and one or more Vice Chair. The Chair may be re-elected once and serve a maximum of six years.
## **Trustee induction and training**
and recent fi nancial performance of the charity. During the induction day they meet key employees and other Trustees. Training needs are discussed annually with the Chair as part of the appraisal process and Trustees can access training from a variety of sources. There are Trustee/Senior Management “away days” including training, education and strategic planning. All Trustees and senior management receive safeguarding training to enable them to monitor the charity’s responsibilities in this area.
## **Organisation**
The Board of Trustees administers the charity. As a registered charity, a limited Company, an employer and a provider of health services to vulnerable children and young people, Cope Children’s Trust faces complex legislative and inspection arrangements. The Trustees have the responsibility to ensure that all the activities comply with best practice and that reliance can be placed on well documented procedures that are consistently applied. Two groups have been established to check that adequate procedures exist and to monitor by inspection that they are used eff ectively: a ‘Corporate Governance’ committee, comprising both Trustees and senior managers, and a ‘Clinical Governance’ committee, consisting of suitably qualifi ed Trustees and the Executive Nurse. Both committees report to the full Board of Trustees. To facilitate eff ective operations, the Chief Executive Offi cer has delegated authority, within terms of delegation approved by the Trustees, for operational matters including employment, fi nance, and the day to day running of the Hospice.
The Trustees confi rm that all major risks have been reviewed and procedures have been established to manage those risks.
New Trustees undergo an orientation day to brief them on their legal obligations under Charity and Company Law, the content of the Articles of Association of the Company, the sub-committee and decision-making processes, the business plan
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## **Related Parties**
None of our Trustees receive remuneration or other benefits from their work with the charity. Any personal interest between a Trustee or senior manager and the charity’s activities must be disclosed to the full Board of Trustees in the same way as any other contractual relationship with a related party. Transactions with related parties are disclosed in note 21 to the accounts. The charity’s wholly owned subsidiary Cope Marketing Ltd was established for non-primary trading activities and when available covenants its profits to the charity.
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation
The Trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
In so far as the Trustees are aware:
## **Key Management personnel remuneration**
The key management personnel are the Board of Trustees and members of the Senior Leadership Team who are detailed on page 17 and 18. The Trustees lead the strategic direction of the charity and act as an oversight Board to the Senior Leadership Team who manage the operational aspects of the charity on a day to day basis. The remuneration of the Chief Executive Officer and the Senior Leadership Team is reviewed and set annually by the Board of Trustees.
## **Statement of responsibilities of the Trustees**
The Trustees (who are also directors of Cope Children’s Trust for the purposes of company law) are responsible for preparing the Trustees’ annual report including the strategic report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and group and of the incoming resources and application of resources, including the income and expenditure, of the charitable company or group for that period. In preparing these financial statements, the Trustees are required to:
- select suitable accounting policies and then apply them consistently
- observe the methods and principles in the Charities SORP
- there is no relevant audit information of which the charitable company’s auditor is unaware
- the Trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information
The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
Members of the charity guarantee to contribute an amount not exceeding £1 to the assets of the charity in the event of winding up. The total number of such guarantees at year end was £13 (2021 - £13). The Trustees are members of the charity but this entitles them only to voting rights. The trustees have no beneficial interest in the charity.
## **Auditor**
Sayer Vincent LLP was re-appointed as the charitable company’s auditor during the year and has expressed its willingness to continue in that capacity.
The Trustees’ annual report which includes the strategic report has been approved by the Trustees on date and signed on their behalf by
- make judgements and estimates that are reasonable and prudent
- state whether applicable UK Accounting Standards and statements of recommended practice have been followed, subject to any material departures disclosed and explained in the financial statements
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**Paul Stothard (Chairman of the Board of Trustees) Date:** 04/08/2022
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**Year Ended - 31 March 2022**
## **5. Reference and Administration Details**
**Chairman** Paul Stothard **Founder** Harry Moore **Vice Chair** Sue Dryden **President** The Duchess of Rutland Chan Kataria OBE **Vice President** Vacant **Treasurer** Angela Browning **Patrons** Anne Davies Tony Jacklin CBE **Corporate Governance Committee** Chan Kataria OBE (Chair) Chris Cohen Joanne Brunner Fiona Cairns Vipal Karavadra Andy Abraham Richard Whall Ady Dayman Angela Browning Angela Rippon OBE Dave Wilson William Roache MBE **Clinical Quality Assurance Committee** David Walliams OBE Nina Conti Sue Dryden (Chair) Rakhee Thakrar Vijay Sharma Sam Bailey Matt Rooney Lydia Bewley Dr Gail Allsopp (retired 16/05/2022) Christina Brooks Kwoklyn Wan
## **Corporate Governance Committee**
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**Year Ended - 31 March 2022**
## **5. Reference and Administration Details (continued)**
## **Company Secretary**
Glyn Rees-Jones
## **Senior Leadership Team**
Dee Sissons – Chief Executive Offi cer
Julie Taylor – Executive Nurse and Director of Clinical Operations
Jane Burns – Director of Supporter Relations
Glyn Rees-Jones – Director of Business Resources
Julia Bates - Director of People - appointed October 2021
## **Contact Details**
Charity number – 1014051
Company number – 02743297
Operating name – Rainbows Hospice for Children and Young People
Principal and Registered Offi ce - Lark Rise, Loughborough, Leicestershire, LE11 2HS
Countries of Registration and Incorporation: England and Wales
**Auditor** Sayer Vincent, London
**Principal Bankers** National Westminster bank plc, Leicester
**Principal Solicitors** Shoosmiths, Nottingham
**Principal Investment** Brewin Dolphin, Leicester and St James’s Place, Birmingham **Managers**
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## **6. Independent Auditor’s Report to the Members of Cope Children’s Trust (Limited by Guarantee)**
## **Opinion**
## **Conclusions relating to going concern**
We have audited the fi nancial statements of Cope Children’s Trust (the ‘parent charitable company’) and its subsidiary (the ‘group’) for the year ended 31 March 2022 which comprise the consolidated statement of fi nancial activities, the group and parent charitable company balance sheets, the consolidated statement of cash fl ows and the notes to the fi nancial statements, including a summary of signifi cant accounting policies. The fi nancial 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 fi nancial statements:
In auditing the fi nancial statements, we have concluded that the Trustees’ use of the going concern basis of accounting in the preparation of the fi nancial statements is appropriate.
Based on the work we have performed, we have not identifi ed any material uncertainties relating to events or conditions that, individually or collectively, may cast signifi cant doubt on Cope Children’s Trust’s ability to continue as a going concern for a period of at least twelve months from when the fi nancial 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.
- give a true and fair view of the state of the group’s and of the parent charitable company’s aff airs as at 31 March 2022 and of the group’s incoming resources and application of resources, including its income and expenditure, for the year then ended
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice
- have been prepared in accordance with the requirements of the Companies Act 2006 and the Charities Act 2011
## **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 group fi nancial statements section of our report. We are independent of the group and parent charitable company in accordance with the ethical requirements that are relevant to our audit of the fi nancial statements in the UK, including the FRC’s Ethical Standard, and we have fulfi lled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is suffi cient and appropriate to provide a basis for our opinion.
## **Other information**
The other information comprises the information included in the Trustees’ annual report, including the strategic report, other than the group fi nancial statements and our auditor’s report there on. The Trustees are responsible for the other information contained within the annual report. Our opinion on the group fi nancial statements does not cover the other information, and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the group fi nancial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the group fi nancial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
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## **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’ annual report, including the strategic report, for the fi nancial year for which the fi nancial statements are prepared is consistent with the fi nancial statements
- the Trustees’ annual report, including the strategic report, has been prepared in accordance with applicable legal requirements
## **Matters on which we are required to report by exception**
In the light of the knowledge and understanding of the group and the parent charitable company and their environment obtained in the course of the audit, we have not identifi ed material misstatements in the Trustees’ annual report, including the strategic report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 and Charities Act 2011 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept by the parent charitable company, or returns adequate for our audit have not been received from branches not visited by us; or
- the parent charitable company fi nancial statements are not in agreement with the accounting records and returns; or
- certain disclosures of trustees’ remuneration specifi ed 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 statement of Trustees’ responsibilities set out in the trustees’ annual report, the Trustees (who are also the directors of the parent charitable company for the purposes of company law) are responsible for the preparation of the fi nancial statements and for being satisfi ed that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of fi nancial statements that are free from material misstatement, whether due to fraud or error.
In preparing the fi nancial statements, the Trustees are responsible for assessing the group’s and the parent charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the group or the parent charitable company or to cease operations, or have no realistic alternative but to do so.
## **Auditor’s responsibilities for the audit of the fi nancial statements**
We have been appointed auditor under the Companies Act 2006 and section 151 of the Charities Act 2011 and report in accordance with those Acts.
Our objectives are to obtain reasonable assurance about whether the fi nancial 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 infl uence the economic decisions of users taken on the basis of these fi nancial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud are set out below.
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## **Capability of the audit in detecting irregularities**
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:
- we enquired of management, and the audit committee, which included obtaining and reviewing supporting documentation, concerning the group’s policies and procedures relating to:
- identifying, evaluating, and complying with laws and regulations and whether they were aware of any instances of non-compliance
- detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected, or alleged fraud
- the internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations
- we inspected the minutes of meetings of those charged with governance
- we obtained an understanding of the legal and regulatory framework that the group operates in, focusing on those laws and regulations that had a material eff ect on the fi nancial statements or that had a fundamental eff ect on the operations of the group from our professional and sector experience
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the fi nancial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions refl ected in the fi nancial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
## **Use of our report**
This report is made solely to the charitable company’s members as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and section 144 of the Charities Act 2011 and regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
- we communicated applicable laws and regulations throughout with the audit team and remained alert to any indications of non-compliance throughout the audit
- we reviewed any reports made to regulators
- we reviewed the fi nancial statement disclosures and tested these to supporting documentation to assess compliance with applicable laws and regulations
- we performed analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud
- in addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments, assessed whether the judgements made in making accounting estimates are indicative of a potential bias and tested signifi cant transactions that are unusual or those outside the normal course of business
## **Fleur Holden (Senior Statutory Auditor)**
for and on behalf of Sayer Vincent LLP Charity Accountants, Statutory Auditor Invicta House, 108-114 Golden Lane, London, EC1Y 0TL Sayer Vincent LLP is eligible to act as auditor in terms of section 1212 of the Companies Act 2006
## **Date: 19 August 2022**
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21
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**Year Ended - 31 March 2022**
## **7. Accounts and Notes to the Accounts**
## **Consolidated Statement of Financial Activities Year ended 31 March 2022**
## **Incorporating Income and Expenditure Account**
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Unrestricted Restricted Total Total
funds Funds 2022 2021
Notes £ £ £ £
Income from
Donations and legacies 3 4,132,380 686,676 4,819,056 3,940,270
Charitable activities 3 620,177 743,027 1,363,204 1,621,443
Other trading activities 3 1,663,767 0 1,663,767 1,043,772
Investments 3 75,423 0 75,423 66,696
Other 3 54,753 0 54,753 507,445
Total 6,546,500 1,429,703 7,976,203 7,179,626
Expenditure on
Raising funds 4 2,064,321 0 2,064,321 1,633,610
Charitable activities 5 2,934,457 1,630,600 4,565,057 4,349,838
Tax payable by subsidiary 10 12,351 0 12,351 2,338
Total 5,011,129 1,630,600 6,641,729 5,985,786
Net gains/(losses) on investments 12 86,152 0 86,152 449,560
Net income/(expenditure) 1,621,523 (200,897) 1,420,626 1,643,400
Net movement in funds 1,621,523 (200,897) 1,420,626 1,643,400
Fund balances at 1 April 2021 7,534,728 3,541,524 11,076,252 9,432,852
Fund balances at 31 March 2022 17/18 9,156,251 3,340,627 12,496,878 11,076,252
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**----- Start of picture text -----**
“I trust the
staff at Rainbows
so much, it is great
and it enables
me to get
some respite.”
Rainbows’ Mum
**----- End of picture text -----**
All income and expenditure derive from continuing activities.
The statement of fi nancial activities includes all gains and losses arising during the year.
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**Year Ended - 31 March 2022**
## **Group and Charity Balance Sheets at 31 March 2022**
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Group Group Charity Charity
2022 2021 2022 2021
Notes £ £ £ £
Fixed assets
Tangible assets 11 3,759,570 3,666,380 3,853,567 3,757,507
Investments 12 3,760,516 3,668,461 3,760,518 3,668,463
Total fi xed assets 7,520,086 7,334,841 7,614,085 7,425,970
Current assets
Stock 13 10,949 10,850 0 0
Debtors: including those due after one year 14 1,684,738 1,509,422 1,709,317 1,567,791
Cash at bank and in hand 4,220,603 3,329,363 4,140,230 3,318,212
Total current assets 5,916,290 4,849,635 5,849,547 4,886,003
Creditors: amounts falling due within one year 15 939,498 1,108,224 874,214 1,088,181
Net current assets 4,976,792 3,741,411 4,975,333 3,797,822
Total net assets 12,496,878 11,076,252 12,589,418 11,223,792
The funds of the Charity
Restricted funds 17 3,340,627 3,541,524 3,457,279 3,661,261
Unrestricted funds 18 8,589,433 7,025,459 8,565,321 7,053,262
Fair value reserves 18 566,818 509,269 566,818 509,269
Total Charity Funds 12,496,878 11,076,252 12,589,418 11,223,792
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As permitted by s408 Companies Act 2006, the Charity has not presented its own statement of fi nancial activities and related notes. The charity’s income for the year was £7,433,000 (2021 - £6,790,000). The charity’s surplus for the year was £1,365,625 (2021 – surplus £1,628,132). The accounts were approved and authorised for issue by the Board of Trustees on 04/08/2022 and are signed on its behalf by:
## **Paul Stothard - Chairman of the Board of Trustees**
## **Angela Browning - Treasurer**
The notes on pages 25 to 41 form part of these accounts Company Registration No. 02743297
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**Year Ended - 31 March 2022**
##
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2022 2021
Notes £ £ £ £
Net cash infl ow from
operating activities 20 1,188,411 1,670,779
Cash fl ow from
investing activities
Payments to acquire
tangible fi xed assets (366,691) (58,651)
Receipts from sale of
tangible fi xed assets 0 1,800
Payments to acquire
investments (123,671) (452,643)
Receipts from sale of
investments 118,480 409,431
Interest received 3,798 (1,415)
Dividends received 63,880 60,491
Rent received from
investment properties 7,745 7,620
Net cash outfl ow from
investing activities (296,459) (33,367)
Net increase in cash or
cash equivalents 891,952 1,637,412
Cash or cash equivalents
at 1 April 2021 3,404,985 1,767,573
Cash or cash equivalents
at 31 March 2022 4,296,937 3,404,985
Cash and Cash
equivalents consist of
Cash at bank or in hand 4,220,603 3,329,363
Cash at investment
managers 76,334 75,622
Total 4,296,937 3,404,985
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## **1. Accounting Policies**
## **Company information**
Cope Children’s Trust (the Charity) is a Company limited by guarantee, domiciled and incorporated in England and Wales. The group consists of Cope Children’s Trust and its subsidiary (the Group), Cope Marketing Limited. In the event of the Company being wound up, the liability in respect of the guarantee is limited to £1 per member of the Charity. The address of the registered office is given in the reference and administration information on page 18.
## **Basis of preparation**
The Charity constitutes a Public Benefit entity as defined by FRS 102. These financial statements have been prepared in accordance with: the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), Accounting and Reporting by Charities: Statement of Recommended Practice applicable to Charities applying FRS 102, the Charities Act 2011, the Companies Act 2006 and UK Generally Accepted Practice.
The accounts are prepared in sterling, which is the functional currency of the Charity. Monetary amounts in these accounts are rounded to the nearest £.
These accounts are prepared under the historical cost convention, modified to include the revaluation of fixed asset investments. The principal accounting policies adopted are set out below. These policies have been consistently applied to all years presented unless otherwise stated.
## **Basis of consolidation**
The consolidated financial statements incorporate those of Cope Children’s Trust and its subsidiary (i.e. the entity that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits).
All financial statements are made up to 31 March 2022. Where necessary, adjustments are made to the financial statements of the subsidiary to bring the accounting policies used into line with those used by the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation.
## **Going concern**
At the time of approving the accounts, the trustees consider that there are no material uncertainties about the charity’s ability to continue as a going concern. In line with ISA 570, it is felt that the charity can demonstrate it maintains sufficient reserves for the future based on prospective financial performance, cashflow and identification of risk reserves. Thus the Trustees continue to adopt the going concern basis of accounting in preparing the accounts.
## **Funds**
General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Charity and which have not been designated for other purposes.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Charity for particular purposes. The cost of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the accounts.
Designated funds are funds which the Board have approved to be designated out of unrestricted reserves and which are for the purpose of spending against budgeted strategic aims. We anticipate these designated reserves will have been utilised in their entirety by 31 March 2025.
## **Income Recognition**
All income is included in the Statement of Financial Activities (“SOFA”) when the Charity is legally entitled to the income after any performance conditions have been met, the amounts can be measured reliably and it is probable that the income will be received.
Entitlement to donations usually arises immediately on receipt. For donations to be recognised the Charity will have been notified of the amounts and the settlement date in writing. If there are conditions attached to the donation and this requires a level of performance before entitlement can be obtained then income is deferred until those conditions are fully met or the fulfilment of those conditions is within the control of the Charity and it is probable that they will be fulfilled. Income Tax recoverable in relation to donations received under Gift Aid is recognised at the time of the donation.
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Donated facilities and donated professional services are recognised in income at their fair value when their economic benefi t is probable, the amount can be measured reliably and the Charity has control over the item. Fair value is determined on the basis of the value of the gift to the Charity. For example the amount the Charity would be willing to pay in the open market for such facilities and services. A corresponding amount is recognised in expenditure.
No amount is included in the fi nancial statements for volunteer time in line with the Charities SORP (FRS 102). Further detail is given in the Trustees’ Annual Report.
Gifts in kind donated for resale or distribution are not recognised in the accounts until they are sold or distributed because the Trustees consider it is impractical to fair value the items due to the large volume of low value items. The Charity operates a retail Gift Aid Scheme for these goods which are sold in its shops on an agency basis.
Fixed asset gifts in kind are recognised when receivable and are included at fair value.
For legacies, entitlement is the earlier of the Charity being notifi ed of an impending distribution or the legacy being received. At this point income is recognised. On occasions, legacies will be notifi ed to the Charity but it is not possible to measure the amount expected to be distributed. On these occasions, the legacy is treated as a contingent asset and disclosed.
Income from charitable activities includes income received from NHS contracts, income from local care commissioning groups and local authorities. Income from these categories is recognised at fair value when the Charity has entitlement after any performance conditions have been met, it is probable that the income will be received and the amount can be measured with reliability. If entitlement is not met, then the amounts are deferred.
Income from trading activities includes income earned from the retail shops, fundraising events and trading activities to raise funds for the Charity. Income is received in exchange for supplying goods and services in order to raise funds and is recognised when entitlement has occurred.
Interest is recognised on an accruals basis and dividend and rental income is recognised as the Charity’s right to receive payment is established.
Income from government and other grants is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred. Income arising from the coronavirus job retention scheme and retail, hospitality and leisure grants have been accounted for and included within other income. Income from NHSE Covid-19 funding through Hospice UK is included within charitable activities.
Other income primarily includes hire of facilities and other sources and is recognised on an accruals basis.
## **Expenditure recognition**
All expenditure is accounted for on an accruals basis and has been classifi ed under headings that aggregate all costs relating to the category. Expenditure is recognised when there is a legal or constructive obligation to make payments to third parties, it is probable that settlement will be required and the amount of the obligation can be measured reliably. It is recognised under the following headings:
- costs of raising funds includes costs incurred in seeking donations, grants and legacies, fundraising and investment management fees
- expenditure on charitable activities includes those costs providing specialist palliative care and support, community services, research and other educational activities undertaken to further the delivery of the objects of the Charity
Irrecoverable VAT is charged against the category of resources expended for which it was incurred.
Lottery income is accounted for in respect of those draws that have taken place in the year.
Investment income is earned through holding assets for investment purposes such as listed investments and property. It includes dividends, interest and rent. Where it is not practicable to identify investment management costs incurred within a scheme with reasonable accuracy the investment income is reported net of these costs. It is included when the amount can be measured reliably.
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**Cope Children’s Trust - Trustees’ Annual Report and Accounts**
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## **Support costs allocation**
Support costs are those that assist the work of the Charity but do not directly represent charitable activities and costs of raising funds and include offi ce costs, governance costs, and administrative payroll costs. Support costs are allocated to costs of raising funds and expenditure on charitable activities on a basis consistent with use of the resources.
The analysis of these costs is included in note 6.
## **Tangible fi xed assets and depreciation**
Tangible fi xed assets costing more than £250 are capitalised and other than freehold land are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, as follows:
- freehold land is not depreciated
- leasehold property – over the life of the lease
Investment property is measured at fair value at the reporting date with changes in fair value recognised in ‘net gains / (losses) on investments’ in the SOFA.
Interests in subsidiaries are measured at cost less impairment losses.
## **Financial instruments**
Financial instruments are recognised in the group’s balance sheet when the group becomes party to the contractual provisions of the instrument.
## **Stocks**
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. Stock cost is recorded at invoice price net of any discounts received. Donated items of stock for resale or distribution are not included in the accounts until they are sold or distributed because the Trustees consider it impractical to be able to assess the amount of donated stocks as there are no systems in place which record these items until they are sold and undertaking a stock take would incur undue cost for the Charity which would far outweigh the benefi ts.
- fi xtures, fi ttings and equipment – on cost between three and seven years
- motor vehicles - on cost over four years
## **Impairment of tangible fi xed assets**
At each reporting period end date, the Charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suff ered an impairment loss. If any such indication exists, the recoverable amount of the asset, or the asset’s cash generating unit, is estimated and compared to the carrying amount estimated in order to determine the extent of the impairment loss (if any). Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised in the SOFA.
## **Debtors receivable within one year**
Debtors with no stated interest rate and receivable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the SOFA.
## **Cash at bank and in hand**
Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity ranging from three to six months or less from the date of acquisition or opening of the deposit or similar account.
## **Fixed asset investments**
Investments in equity instruments which are not subsidiaries are initially recognised at transaction price excluding transaction costs. Subsequently, they are measured at fair value with changes recognised in ‘net gains / (and losses) on investments’ in the SOFA if the shares are publicly traded or their fair value can otherwise be measured reliably. Other investments are measured at cost less impairment.
**27**
**Cope Children’s Trust - Trustees’ Annual Report and Accounts**
**Year Ended - 31 March 2022**
## **Creditors payable within one year**
Creditors with no stated interest rate and payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the SOFA.
## **Loans**
Loans are initially recognised at the transaction price including transaction costs. Subsequently, they are measured at amortised cost using the eff ective interest rate method, less impairment.
## **Employee benefi ts**
When employees have rendered service to the Charity, short-term employee benefi ts to which the employees are entitled are recognised at the undiscounted amount expected to be paid in exchange for that service.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefi ts are recognised immediately as an expense when the Charity is demonstrably committed to terminate the employment of an employee or to provide termination benefi ts.
## **Retirement benefi ts**
The Charity contributes to the NHS defi ned benefi t pension scheme. This is a multi-employer pension scheme and it is not possible to identify the assets and liabilities of the scheme which are attributable to the group. In accordance with FRS 102 therefore, the scheme is accounted for as a defi ned contribution scheme.
The Charity also contributes to defi ned contribution schemes for other staff that are not eligible to join the NHS pension scheme. Contributions are expensed as they become payable.
## **Leases**
Rentals payable under operating leases, including any lease incentives received, are charged to the SOFA on a straight line basis over the term of the relevant lease.
## **Critical accounting estimates and judgements**
In the application of the Charity’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may diff er from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision aff ects only that period or in the period, of the revision and future periods where the revision aff ects both current and future periods.
The Trustees do not consider there to be any key sources of estimates or uncertainty that have a signifi cant eff ect on the amounts recognised in the fi nancial statements.
**28**
**Cope Children’s Trust - Trustees’ Annual Report and Accounts**
**Year Ended - 31 March 2022**
## **2. Comparative Statement of Financial Activities Year ended 31 March 2021 Incorporating Income and Expenditure Account**
**----- Start of picture text -----**
Unrestricted Restricted Total
funds Funds Total 2021 2020
£ £ £ £
Income from
Donations and legacies 3,216,204 724,066 3,940,270 4,029,983
Charitable activities 279,017 1,342,426 1,621,443 778,538
Other trading activities 1,043,772 0 1,043,772 1,797,364
Investments 66,696 0 66,696 91,007
Other 507,445 0 507,445 54,077
Total 5,113,134 2,066,492 7,179,626 6,750,969
Expenditure on
Raising funds 1,633,610 0 1,633,610 1,957,771
Charitable activities 2,237,362 2,112,476 4,349,838 4,630,093
Tax payable by subsidiary 2,338 0 2,338 0
Total 3,873,310 2,112,476 5,985,786 6,587,864
Net (losses)/gains on investments 449,560 0 449,560 (255,897)
1,689,384 (45,984) 1,643,400 (92,792)
Net (expenditure)/income 1,689,384 (45,984) 1,643,400 (92,792)
Net movement in funds 1,689,384 (45,984) 1,643,400 (92,792)
Fund balances at 1 April 2020 5,845,344 3,587,508 9,432,852 9,525,644
Fund balances at 31 March 2021 7,534,728 3,541,524 11,076,252 9,432,852
**----- End of picture text -----**
**29**
**Cope Children’s Trust - Trustees’ Annual Report and Accounts**
**Year Ended - 31 March 2022**
## **3. Income Donations and legacies**
**----- Start of picture text -----**
Unrestricted Restricted Total Unrestricted Restricted Total
funds Funds 2022 Funds Funds 2021
£ £ £ £ £ £
Corporate
donations
and gifts 1,172,263 103,746 1,276,009 963,951 10,000 973,951
Community
donations
and gifts 1,528,453 25,326 1,553,779 916,605 8,481 925,086
Legacies
receivable 1,334,691 0 1,334,691 1,198,822 0 1,198,822
Grants -
Trusts and
foundations 96,973 557,604 654,577 136,826 705,585 842,411
Total 4,132,380 686,676 4,819,056 3,216,204 724,066 3,940,270
**----- End of picture text -----**
The above fi gures include gifts in kind donated by supporters amounting to £7,206 (£72,143 in 2021).
## **Charitable activities**
The income from the Clinical Care Commissioning Groups and local authorities relates to annually agreed contracts for the provision of Hospice services for the regions or individuals. The NHS England grant is our share of the block grant to children’s hospices.
The NHSE again awarded funding to allow the hospice to make available bed capacity and community support from December 2021 to March 2022 to provide support to people with complex needs in the context of the Covid-19 situation.
## **Other trading activities**
**----- Start of picture text -----**
Unrestricted Restricted Total Unrestricted Restricted Total
funds Funds 2022 Funds Funds 2021
£ £ £ £ £ £
Organised
Events 283,644 0 283,644 66,854 0 66,854
Challenges 119,413 0 119,413 76,971 0 76,971
Lottery 669,780 0 669,780 681,642 0 681,642
Retail and
business
activities 590,930 0 590,930 218,305 0 218,305
Total 1,663,767 0 1,663,767 1,043,772 0 1,043,772
**----- End of picture text -----**
**----- Start of picture text -----**
Unrestricted Restricted Total Unrestricted Restricted Total
funds Funds 2022 Funds Funds 2021
£ £ £ £ £ £
Clinical Care
Commissioning
and Local
Authorities 620,177 20,000 640,177 279,017 0 279,017
Grants from
NHS England 0 603,293 603,293 0 540,986 540,986
NHSE Covid-19
Funding 0 119,734 119,734 0 801,440 801,440
Total 620,177 743,027 1,363,204 279,017 1,342,426 1,621,443
**----- End of picture text -----**
**30**
**Cope Children’s Trust - Trustees’ Annual Report and Accounts**
**Year Ended - 31 March 2022**
## **3. Income (continued) Investment income**
**----- Start of picture text -----**
Unrestricted Restricted Total Unrestricted Restricted Total
funds Funds 2022 Funds Funds 2021
£ £ £ £ £ £
Income from
Listed
investments 63,880 0 63,880 60,491 0 60,491
Interest
receivable 3,798 0 3,798 (1,415) 0 (1,415)
Investment
property income 7,745 0 7,745 7,620 0 7,620
Total 75,423 0 75,423 66,696 0 66,696
**----- End of picture text -----**
## **Other income**
**----- Start of picture text -----**
Unrestricted Restricted Total Unrestricted Restricted Total
funds Funds 2022 Funds Funds 2021
£ £ £ £ £ £
Contributions
received for
use of facilities 0 0 0 330 0 330
Coronavirus
job retention
scheme
income 0 0 0 330,052 0 330,052
Retail,
hospitality and
leisure grants
income 16,000 0 16,000 143,969 0 143,969
Other
sundry income 38,753 0 38,753 33,094 0 33,094
Total 54,753 0 54,753 507,445 0 507,445
**----- End of picture text -----**
## **4. Expenditure on raising funds**
**----- Start of picture text -----**
Total Total
Staff Costs Depreciation Other Costs 2022 2021
£ £ £ £ £
Cost of seeking
donations and
legacies 642,769 0 192,007 834,776 596,972
Fundraising
Events/challenges 21,039 0 92,227 113,266 37,342
Lottery 17,995 0 174,435 192,430 163,291
Retail and
business activities 267,346 11,789 247,177 526,312 423,183
Investments
management costs 0 0 11,228 11,228 9,471
Support costs
allocated (note 6) 289,494 17,438 79,377 386,309 403,351
Total 1,238,643 29,227 796,451 2,064,321 1,633,610
Restricted
expenditure 0 0
Unrestricted
expenditure 2,064,321 1,633,610
**----- End of picture text -----**
**31**
**Cope Children’s Trust - Trustees’ Annual Report and Accounts**
**Year Ended - 31 March 2022**
## **5. Expenditure on charitable activities**
**----- Start of picture text -----**
Total Total
Staff Costs Depreciation Other Costs 2022 2021
£ £ £ £ £
Hospice direct
care costs 2,881,476 0 429,662 3,311,138 3,039,262
Support costs
allocated (note 6) 544,846 244,271 464,802 1,253,919 1,310,576
Total Care Costs 3,426,322 244,271 894,464 4,565,057 4,349,838
Restricted
expenditure 1,630,600 2,112,476
Unrestricted
expenditure 2,934,457 2,237,362
**----- End of picture text -----**
## **6. Support Costs**
**----- Start of picture text -----**
Charitable
Raising Funds Expenditure Total 2022 Total 2021
£ £ £ £
Governance
Staff costs 0 24,648 24,648 23,202
Governance
Other costs 0 15,000 15,000 14,280
Support Staff costs 289,494 520,198 809,692 861,330
Depreciation 17,438 244,271 261,709 244,563
Establishment costs 29,820 168,981 198,801 188,704
Other
administration costs 49,557 280,821 330,378 381,848
Total 386,309 1,253,919 1,640,228 1,713,927
**----- End of picture text -----**
## **7. Net income/expenditure for the year**
**----- Start of picture text -----**
Total 2022 Total 2021
£ £
Is stated after charging:
Depreciation 273,501 259,850
Operating leases - land and buildings 109,702 108,266
Auditor’s remuneration (excluding VAT) – Audit 15,000 14,280
Auditor’s remuneration (excluding VAT) – Other 1,075 1,020
**----- End of picture text -----**
## **8. Trustees remuneration and expenses**
None of the Trustees (or any persons connected with them) received any remuneration or benefi ts from the Charity during the year, or the previous year. Two of the Trustees (but not any persons connected with them) received reimbursed expenses totalling £267 from the Charity during the year, in relation to mainly travel costs arising from activities or training as a Trustee. In the previous year, one Trustee received reimbursed expenses totalling £117.
## **9. Employees**
**----- Start of picture text -----**
Average Head Count
excluding Trustees 2022 Actual 2022 FTE 2021 Actual 2021 FTE
Care 108 85 106 85
Administration 8 7 9 8
Fundraising 42 38 38 35
Finance 6 6 7 6
Human Resources 6 5 5 5
Total 170 141 165 139
**----- End of picture text -----**
Support costs have been allocated on a basis designed to refl ect the use of the resources.
Governance other costs relate to the costs of the annual audit.
**32**
**Cope Children’s Trust - Trustees’ Annual Report and Accounts**
**Year Ended - 31 March 2022**
## **9. Employees (continued)**
**----- Start of picture text -----**
Employment costs Total 2022 Total 2021
£ £
Wages and salaries 4,047,856 3,810,082
Social security costs 335,415 306,116
Defi ned contribution
pension costs 129,795 163,241
Defi ned benefi t pension
operating costs 134,066 111,678
Termination payments 17,833 44,663
Total 4,664,965 4,435,780
Key management costs
- Total Remuneration 358,370 388,925
Number of volunteers 208 249
Number of employees whose
annual remuneration was
£60,000 - £70,000 4 2
£70,000 - £80,000 0 0
£80,000 - £90,000 1 1
£90,000 - £100,000 0 1
**----- End of picture text -----**
We only include fi ve employees in the above salary bandings. Should one of our other Directors have been in employment for the full twelve months, this would be higher and we would have shown fi ve employees in the salary banding £60,000 - £70,000.
## **10. Tax status**
The company is a Registered Charity and is entitled to certain exemptions from Corporation Tax on profi ts from investments and its trading activities carried on in furtherance of the Charity’s primary objectives. The trading subsidiary is subject to corporation tax on its profi ts. A taxation charge for the year of £12,351 has been recognised (2021 - £2,338).
**33**
**Cope Children’s Trust - Trustees’ Annual Report and Accounts**
**Year Ended - 31 March 2022**
## **11. Tangible fi xed assets**
**----- Start of picture text -----**
Long Leasehold Fixtures Fittings
Property and Equipment Motor Vehicles Total
a) Group £ £ £ £
**----- End of picture text -----**
|a)Group|Long Leasehold
Property
£|Fixtures Fittings
and Equipment
£|Motor Vehicles
£|Total
£|
|---|---|---|---|---|
||||||
|**Cost**
At 1 April 2021
Additions
Disposals
**At 31 March 2022**
**Depreciation**
At 1 April 2021
Charge for the year
Disposals
**At 31 March 2022**
**NBV**
**At 31 March 2022**
At 31 March 2021|5,064,267
2,195,095
67,752
7,327,114
10,215
356,476
0
366,691
0
(20,162)
0
(20,162)||||
||**5,074,482**
**2,531,409**
**67,752**
**7,673,643**||||
||1,621,783
2,003,444
35,507
3,660,734
101,241
166,383
5,877
273,501
0
(20,162)
0
(20,162)||||
||**1,723,024**
**2,149,665**
**41,384**
**3,914,073**||||
||**3,351,458**
**381,744**
**26,368**
**3,759,570**||||
||3,442,484
191,651
32,245
3,666,380||||
**----- Start of picture text -----**
Long Leasehold Fixtures Fittings
Property and Equipment Motor Vehicles
b) Charity £ £ £ Total £
**----- End of picture text -----**
|b)Charity|Long Leasehold
Property
£|Fixtures Fittings
and Equipment
£|Motor Vehicles
£|Total £|
|---|---|---|---|---|
||||||
|**Cost**
At 1 April 2021
Additions
Disposals
**At 31 March 2022**
**Depreciation**
At 1 April 2021
Charge for the year
Disposals
**At 31 March 2022**
**NBV**
**At 31 March 2022**
At 31 March 2021|5,224,608
1,990,306
51,986
7,266,900
10,215
350,764
0
360,979
0
0
0
0||||
||**5,234,823**
**2,341,070**
**51,986**
**7,627,879**||||
||1,657,007
1,817,925
34,461
3,509,393
104,448
155,996
4,475
264,919
0
0
0
0||||
||**1,761,455**
**1,973,921**
**38,936**
**3,774,312**||||
||**3,473,368**
**367,149**
**13,050**
**3,853,567**||||
||3,567,601
172,381
17,525
3,757,507||||
Freehold land adjacent to the leasehold property was acquired as a gift from JS Bloor (Measham) Limited and Fairmeadow Limited in 2008. The Trustees believe its value is not material as the land is intrinsic to the Hospice site and buildings and could not be realised whilst this remains the case.
Leasehold property is inclusive of assets donated to the Charity in previous years. Such assets are valued at the cost price that would have been paid if the assets had not been donated as gifts in kind.
**34**
**Cope Children’s Trust - Trustees’ Annual Report and Accounts**
**Year Ended - 31 March 2022**
The fair value of the investment property was not independently valued but is determined by the Trustees by reference to the open market value for similar properties at the Balance Sheet date.
## **12. Fixed asset investments**
**----- Start of picture text -----**
Listed Cash held for Investment Subsidiary
Investments investments Property Undertaking Total Total net gains on investments recognised in the SOFA total £86,152 which
a) Group £ £ £ £ £ include £80,528 unrealised gains and £5,624 realised gains.
Market value at
1 April 2021 3,339,839 75,622 253,000 0 3,668,461 Subsidiary Undertaking
Disposals
at opening The Charity holds 100% of the share capital of Cope Marketing Limited
book value (120,624) 0 0 0 (120,624) (no 03209321) a company registered in England and Wales. The principal
Acquisitions activity is the sale of new and donated goods. A summary of the trading
at cost 123,671 0 2,144 0 125,815 results of Cope Marketing Limited is shown below:
Movement
in Cash 0 712 0 0 712 2022 2021
Change in value £ £
in year 42,296 0 43,856 0 86,152 Turnover 545,307 402,065
Market value at Cost of sales 23,077 12,600
31 March 2022 3,385,182 76,334 299,000 0 3,760,516
Gross Profit 522,230 389,465
Admin expenses 458,085 365,760
Cash Taxation payable 12,351 2,338
Listed held for Investment Subsidiary Profit for the year 51,794 21,367
Investments investments Property Undertaking Total Total comprehensive income 51,794 21,367
b) Charity £ £ £ £ £
Market value at
1 April 2021 3,339,839 75,622 253,000 2 3,668,463 A summary of the assets, liabilities and funds of Cope Marketing Limited is
**----- End of picture text -----**
|||||||||2022
£|2022
£|2021
£|2021
£|
|---|---|---|---|---|---|---|---|---|---|---|---|
||||||||Turnover
545,307
402,065
Cost of sales
23,077
12,600
**Gross Proft**
**522,230**
**389,465**
Admin expenses
458,085
365,760
|||||
|||||||||||||
|b) Charity|Listed
Investments
£|Cash
held for
investments
£|Investment
Property
£|Subsidiary
Undertaking
£|Total
£||Taxation payable|12,351
2,338||||
||||||||**Proft for the year**|**51,794**
**21,367**
**51,794**
**21,367**||||
||||||||**Total comprehensive income**|||||
||||||||A summary of the assets, liabilities and funds of Cope Marketing Limited is
shown below:|||||
|Market value at
1 April 2021
Disposals
at opening
book value
Acquisitions
at cost
Movement
in Cash
Change in value
in year
**Market value at**
**31 March 2022**|3,339,839
75,622
253,000
2
3,668,463
-120,624
0
0
0
-120,624
123,671
0
2,144
0
125,815
0
712
0
0
712
42,296
0
43,856
0
86,152|||||||||||
||||||||||2022
£||2021
£|
||||||||Fixed assets||27,911
33,988
138,543
59,433
(89,284)
(44,043)
(47,800)
(71,800)|||
||||||||Current assets|||||
||||||||Current liabilities|||||
||||||||Long term liabilities
**Total net liabilities**|||||
||||||||||**29,370**
**(22,422)**|||
||**3,385,182**
**76,334**
**299,000**
**2**
**3,760,518**||||||**Aggregate share capital and reserves**||**29,370**
**(22,422)**|||
|||||||||||||
All assets are stated at fair value. The fair value of listed investments is determined by the market price, using the bid price, at the Balance Sheet date.
**35**
**Cope Children’s Trust - Trustees’ Annual Report and Accounts**
**Year Ended - 31 March 2022**
## **13. Stock**
**----- Start of picture text -----**
2022 2021
Group Charity Group Charity
£ £ £ £
Goods for resale 10,949 0 10,850 0
**----- End of picture text -----**
## **14. Debtors**
**----- Start of picture text -----**
2022 2021
Group Charity Group Charity
£ £ £ £
Trade debtors 27,806 26,183 57,724 54,029
Amounts due from group
undertaking 0 71,800 0 95,800
Prepayments 246,315 210,015 127,372 105,151
Other debtors 90,034 84,283 39,376 38,950
Accrued income 1,320,583 1,317,036 1,284,950 1,273,861
Total 1,684,738 1,709,317 1,509,422 1,567,791
**----- End of picture text -----**
Amounts falling due after more than one year and included in the debtors above are:
**----- Start of picture text -----**
2022 2021
Group Charity Group Charity
£ £ £ £
Amounts due
from group undertakings 0 47,800 0 71,800
**----- End of picture text -----**
Amounts due from Group undertakings includes a current account and a loan to Cope Marketing Limited.
Interest on the loan was charged at 2.5% above the Bank of England base rate and the agreed monthly loan repayments of £2,000 each month were made. The loan has now been extended for a further three years, with loan repayments to continue to be paid at £2,000 each month with the outstanding balance being repaid by 31 March 2025.
Accrued income includes legacies receivable of £1,182,445 (2021 £1,105,471).
## **15. Creditors: amounts falling due within one year**
**----- Start of picture text -----**
2022 2021
Group Charity Group Charity
£ £ £ £
Trade Creditors 205,044 189,427 87,927 82,301
Taxes and Social Security 109,648 97,297 86,645 84,307
Accruals 227,721 195,685 104,161 97,782
Deferred Income 397,085 391,805 829,491 823,791
Total 939,498 874,214 1,108,224 1,088,181
Deferred income represents income received in advance for grants, lottery ticket
draws and entrance fees relating to events occurring in the next fi nancial year. The
movements in deferred income are shown below:
2022 2021
Group Charity Group Charity
£ £ £ £
Balance at the beginning of the year 829,491 823,791 472,246 466,967
Amount released to income in the
year (762,153) (756,453) (311,796) (306,517)
Amount deferred in the year 329,747 324,467 669,041 663,341
Balance at the end of the year 397,085 391,805 829,491 823,791
**----- End of picture text -----**
**36**
**Cope Children’s Trust - Trustees’ Annual Report and Accounts**
**Year Ended - 31 March 2022**
## **16. Pension costs**
## **Defi ned Contribution Schemes**
The Charity operates a defi ned contribution pension scheme and contributions are charged in the fi nancial statements as they are incurred. This scheme was closed to new members from the 31 March 2014 other than to senior employees joining the Charity.
With the introduction in July 2015 of the statutory requirements for employers to contribute to schemes and for employees to be auto-enrolled in a scheme, the Charity adopted the Governments own scheme - The People’s Pension.
The Charity also contributed to the personal pension arrangements of a small number of employees who have their own private schemes.
## **Defi ned Benefi t Scheme**
Past and present employees are covered by the provisions of the two NHS Pension Schemes. Details of the benefi ts payable and rules of the Schemes can be found on the NHS Pensions website at www.nhsbsa.nhs.uk/pensions. Both are unfunded defi ned benefi t schemes that cover NHS employers, GP practices and other bodies, allowed under the direction of the Secretary of State for Health and Social Care in England and Wales. They are not designed to be run in a way that would enable NHS bodies to identify their share of the underlying scheme assets and liabilities. Therefore, each scheme is accounted for as if it were a defi ned contribution scheme: the cost to the NHS body of participating in each scheme is taken as equal to the contributions payable to that scheme for the accounting period.
An outline of these follows:
## a) Accounting valuation
A valuation of scheme liability is carried out annually by the scheme actuary (currently the Government Actuary’s Department) as at the end of the reporting period. This utilises an actuarial assessment for the previous accounting period in conjunction with updated membership and fi nancial data for the current reporting period, and is accepted as providing suitably robust fi gures for fi nancial reporting purposes. The valuation of the scheme liability as at 31 March 2022, is based on valuation data as 31 March 2021, updated to 31 March 2022 with summary global member and accounting data. In undertaking this actuarial assessment, the methodology prescribed in IAS 19, relevant FReM interpretations, and the discount rate prescribed by HM Treasury have also been used.
The latest assessment of the liabilities of the scheme is contained in the report of the scheme actuary, which forms part of the annual NHS Pension Scheme Accounts. These accounts can be viewed on the NHS Pensions website and are published annually. Copies can also be obtained from The Stationery Offi ce.
b) Full actuarial (funding) valuation
The purpose of this valuation is to assess the level of liability in respect of the benefi ts due under the schemes (taking into account recent demographic experience), and to recommend contribution rates payable by employees and employers.
The latest actuarial valuation undertaken for the NHS Pension Scheme was completed as at 31 March 2016. The results of this valuation set the employer contribution rate payable from April 2019 to 20.6% of pensionable pay.
In order that the defi ned benefi t obligations recognised in the fi nancial statements do not diff er materially from those that would be determined at the reporting date by a formal actuarial valuation, the FReM requires that “the period between formal valuations shall be four years, with approximate assessments in intervening years”.
**37**
**Cope Children’s Trust - Trustees’ Annual Report and Accounts**
**Year Ended - 31 March 2022**
The 2016 funding valuation also tested the cost of the Scheme relative to the employer cost cap that was set following the 2012 valuation. There was initially a pause to the cost control element of the 2016 valuations, due to the uncertainty around member benefi ts caused by the discrimination ruling relating to the McCloud case.
HMT published valuation directions dated 7 October 2021 (see Amending Directions 2021) that set out the technical detail of how the costs of remedy are included in the 2016 valuation process. Following these directions, the scheme actuary has completed the cost control element of the 2016 valuation for the NHS Pension Scheme, which concludes no changes to benefi ts or member contributions are required. The 2016 valuation reports can be found on the NHS Pensions website at https://www.nhsbsa.nhs.uk/nhs-pension-scheme-accounts-and-valuation-reports.
**----- Start of picture text -----**
2022 2021
Group Charity Group Charity
Employer contributions £ £ £ £
To defi ned
contribution schemes 129,795 121,677 163,241 155,457
To defi ned benefi t scheme 134,066 134,066 111,678 111,678
Total 263,861 255,743 274,919 267,135
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## **17. Restricted funds**
## (a) Group
The funds of the Group include restricted funds comprising the following balances of donations and grants held on trust for specifi c purposes:
|Movement
in funds|
Building for the
future
£|Hospice
Funding
£|Original
Hospice
£|Total
£|
|---|---|---|---|---|
|Balance at 2021
Income
Expenditure
Depreciation
**Balance at 2022**|2,207,141
497,730
836,653
3,541,524
0
1,429,703
0
1,429,703
0
(1,456,237)
0
(1,456,237)
(57,105)
(85,185)
(32,073)
(174,363)||||
||**2,150,036**
**386,011**
**804,580**
**3,340,627**||||
## (b) Charity
The funds of the Charity include restricted funds comprising the following balances of donations and grants held on trust for specifi c purposes:
|Movement
in funds|Building for the
future
£|Hospice
Funding
£|Original
Hospice
£|Total
£|
|---|---|---|---|---|
|Balance at 2021
Income
Expenditure
Depreciation
**Balance at 2022**|2,326,878
497,730
836,653
3,661,261
0
1,429,703
0
1,429,703
0
(1,456,237)
0
(1,456,237)
(60,190)
(85,185)
(32,073)
(177,448)||||
||**2,266,688**
**386,011**
**804,580**
**3,457,279**||||
The ‘Building for the Future’ fund is for the therapy wing at the main Hospice site in Loughborough, Leicestershire.
The ‘Hospice Funding’ amounts were donated for the purchase of specifi ed items on the Hospice wish expenses and equipment list and to increase services.
The ‘Original Hospice’ relates to the leasehold property building fund.
**38**
**Cope Children’s Trust - Trustees’ Annual Report and Accounts**
**Year Ended - 31 March 2022**
## **18. Unrestricted income funds**
## (a) Group
## **19. Analysis of net assets between funds**
(a) Group Fund balances at 31 March 2022 are represented by:
The funds of the Group include unrestricted funds comprising the following balances:
|Movement
in funds|
Balance
at 2021
£|Movement
in year
£|Revaluation
£|Balance
at 2022
£|
|---|---|---|---|---|
|Designated funds for Strategic Aims
General funds
Unrestricted funds excluding fair
value reserve
Fair value reserve
**Total unrestricted income funds**|3,092,930
(351,439)
0
2,741,491
3,932,529
1,892,434
22,979
5,847,942||||
||7,025,459
1,540,995
22,979
8,589,433
509,269
80,528
(22,979)
566,818||||
||**7,534,728**
**1,621,523**
**0**
**9,156,251**||||
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Unrestricted fund Restricted funds Balance at 2022
£ £ £
**----- End of picture text -----**
||Unrestricted fund
£|Restricted funds
£|Balance at 2022
£|
|---|---|---|---|
|||||
|Tangible Fixed Assets
Investments
Current assets
Creditors due within
one year
**Total**|789,199
2,970,371
3,759,570
3,760,516
0
3,760,516
5,546,034
370,256
5,916,290
(939,498)
0
(939,498)|||
||**9,156,251**
**3,340,627**
**12,496,878**|||
(b) Charity Fund balances at 31 March 2022 are represented by:
## (b) Charity
The funds of the Charity include unrestricted funds comprising the following balances:
|Movement
in funds|
Balance
at 2021
£|Movement
in year
£|Revaluation
£|Balance
at 2022
£|
|---|---|---|---|---|
|Designated funds for Strategic Aims
General funds
Unrestricted funds excluding fair
value reserve
Fair value reserve
**Total unrestricted income funds**|3,092,930
(351,439)
0
2,741,491
3,960,332
1,840,519
22,979
5,823,830||||
||7,053,262
1,489,080
22,979
8,565,321
509,269
80,528
(22,979)
566,818||||
||**7,562,531**
**1,569,608**
**0**
**9,132,139**||||
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Unrestricted fund Restricted funds Balance at 2022
£ £ £
**----- End of picture text -----**
||Unrestricted fund
£|Restricted funds
£|Balance at 2022
£|
|---|---|---|---|
|
||||
|Tangible Fixed Assets
Investments
Current assets
Creditors due within
one year
**Total**|766,543
3,087,024
3,853,567
3,760,518
0
3,760,518
5,479,292
370,255
5,849,547
(874,214)
0
(874,214)|||
||**9,132,139**
**3,457,279**
**12,589,418**|||
Designated funds for strategic aims includes planned spend on nurses in hospitals, other care developments, IT projects and lark rise developments. It is expected that £0.7m of designated funds will be spent during the fi nancial year to 31 March 2023, with the balance of the designated fund expected to be spent over the following two years.
The fair value reserve represents the revaluation gains on the investment property and listed investments.
**39**
**Cope Children’s Trust - Trustees’ Annual Report and Accounts**
**Year Ended - 31 March 2022**
## **20. Reconciliation of net income /(expenditure) to net cash fl ow from operating activities**
**----- Start of picture text -----**
2022 2021
£ £
Net income for the year 1,420,626 1,643,400
Investment income (75,423) (66,696)
Depreciation of tangible assets 273,501 259,850
Gains on investments (80,528) (416,912)
Profi t on disposal of tangible fi xed assets 0 (1,800)
Profi t on disposal of fi xed asset investments (5,624) (32,648)
Increase in stocks (99) (453)
(Increase)/decrease in debtors (175,316) 30,384
(Decrease)/increase in creditors (168,726) 255,654
Net cash fl ow from operating activities 1,188,411 1,670,779
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## **21. Related parties**
## **22. Operating Lease Commitments**
At the reporting date the group and Charity had outstanding commitments for future minimum lease payments under non-cancellable operating leases which fall due as follows:
**----- Start of picture text -----**
2022 2021
Group Charity Group Charity
£ £ £ £
Operating leases which expire:
Within one year 51,050 0 77,761 1,277
Between two and fi ve years 35,704 0 86,754 0
In over fi ve years 0 0 0 0
Total 86,754 0 164,515 1,277
**----- End of picture text -----**
Cope Children’s Trust acts as guarantor for the leases of two of the subsidiary company’s charity shops. Outstanding commitments for future minimum lease payments in respect of these shops total £39,011 (2021 £70,047).
A Trustee is an employee of a healthcare company with which the charity has fi nancial transactions. The healthcare company invoiced the Charity for a total of £102,544 during the fi nancial year to 31 March 2022 for the provision of medical staff , of which £627 was outstanding at the year end. The trustee has no involvement in the decisions or arrangements of these contracts.
The transactions between the charity and subsidiary include the interest on the loan amounting to £2,507 (2021 £2,834). During the year, the subsidiary sold donated goods on behalf of the charity which amounted to £84,313 (2021 £29,813).
**40**
**Cope Children’s Trust - Trustees’ Annual Report and Accounts**
**Year Ended - 31 March 2022**
**----- Start of picture text -----**
“Abigail loves the
time she spends at
Rainbows, it’s like a
home from home.”
Abigail’s Mum
**----- End of picture text -----**
## **23. Financial Instruments**
**----- Start of picture text -----**
2022 2021
Group Charity Group Charity
£ £ £ £
Carrying amount of fi nancial assets:
Measured at fair value through
income and expenditure 3,385,182 3,385,182 3,339,839 3,339,839
**----- End of picture text -----**
Financial assets measured at fair value comprise listed investments.
The basis of fair value for quoted investments is equivalent to the market value, using the bid price.
The main risk to the Charity from fi nancial instruments lies in the combination of uncertain investment markets and volatility in yield.
Liquidity risk is anticipated to be low as all assets are traded and the commitment to intervention by central banks and market regulators has continued to provide for orderly trading in the markets and so the ability to buy and sell quoted equities and stock is anticipated to continue. The Charity’s investments are mainly traded in markets with good liquidity and high trading volumes. The Charity has no material investment holdings in markets subject to exchange controls or trading restrictions.
The Charity manages these investment risks by retaining expert advisors and operating an investment policy that provides for a high degree of diversifi cation of holdings within investment asset classes that are quoted on recognised stock exchanges. Furthermore, regular communication is maintained between the advisors and the Trustees.
**41**
## **Thank you for making a diff erence and helping to brighten short lives!**
**rainbows.co.uk**
Rainbows is registered as Cope Children’s Trust in England and Wales. Registered Charity No. 1014051. Registered Offi ce: Lark Rise, Loughborough, Leicestershire LE11 2HS.