OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

2021-12-31-accounts

Charity Registration No. 1014800

Company Registration No. 02750734 (England and Wales)

MARY ANN EVANS HOSPICE

ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

MARY ANN EVANS HOSPICE

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees J Barrett
C Bartup
S Darby (Appointed 19 May 2022)
S Dibb (Simkin)
R Dollen (Appointed 19 May 2022)
K Fawcett (Appointed 20 May 2021)
P Handslip
M Hawkins
C McKenzie (Appointed 19 May 2022)
H Norgrove
P Robson
T Storrow (Appointed 19 May 2022)
J Town
Secretary E Hancock
Charity number 1014800
Company number 02750734
Registered office Eliot Way
Nuneaton
Warwickshire
CV10 7QL
Auditor Dafferns LLP
One Eastwood
Binley Business Park
Coventry
CV3 2UB

MARY ANN EVANS HOSPICE

CONTENTS

Page
Chairman's statement 1
Trustees' report 2 - 5
Statement of trustees' responsibilities 6
Independent auditor's report 7 - 9
Statement of financial activities 10
Balance sheet 11
Statement of cash flows 12
Notes to the financial statements 13 - 27

MARY ANN EVANS HOSPICE

CHAIRMAN'S STATEMENT

FOR THE YEAR ENDED 31 DECEMBER 2021

The Annual Accounts for 2021 reflect the truly exceptional work delivered by all employees and volunteers. While COVID-19 continues to influence how we work in so many ways, we at Mary Ann remain resolute in our commitment to our community in northern Warwickshire. As demonstrated in our recent CQC review, the quality of the services we offer is evident and relied upon by so many.

Equally celebrated is the work of those who run the shops and raise money to allow us to serve our community as without this support none of the clinical outcomes would be possible and the care offered to families would suffer significantly. As I have said before, our Hospice is truly a team undertaking and it is everyone's efforts for which all Trustees are extremely grateful.

As a small, local charity we are substantially dependent on the generosity of beneficiaries, supporters, and other philanthropic contributions and whilst fundraising is somewhat easier than last year it remains a significant challenge in a post Covid-19 world with increased competition and the current economic environment in which we operate.

As we look to the future, we continue our journey out of managing the crisis that COVID-19 presented us with and moving into the new world, with new ways of doing things, different pressures, and the legacy that COVID19 has left.

As Chair I believe that only by working ever more closely with our community, our numerous partners in healthcare and those who use our services can we be successful in ensuring that access to the very best in end-of-life care and support continues.

I am immensely proud of all those who work for and support our Hospice and as a team I know we are up to whatever challenges may come our way!

Chris Bartup Chairman

Dated: 21 July 2022

MARY ANN EVANS HOSPICE

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)

FOR THE YEAR ENDED 31 DECEMBER 2021

The trustees present their report and financial statements for the year ended 31 December 2021.

Constitution

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's [governing document], the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)".

The Mary Ann Evans Hospice (Mary Ann) is a registered charity (Registered Charity Number: 1014800, Company Number: 02750734) and is governed by its Memorandum and Articles of Association dated 25 September 1992 (updated 16 September 2005).

Objectives and activities

Mary Ann is principally engaged in the provision of community (home based) hospice services which operate from Mary Ann’s main address in Nuneaton, Warwickshire.

Any changes to activities during the year were due to Mary Ann’s reaction to the COVID-19 pandemic. These are outlined in more detail on page 3.

Mary Ann’s Vision, Mission and Strategic Aims (2021 – 2024)

Vision

Patients, families and carers in our community experience a journey towards end of life and into bereavement that is personalised, supported, comfortable, safe and is in a place of their choice.

Mission

Strategic Aims

Mary Ann’s focus for Strategic Development during 2021-2024 is on the following objectives: Clinical, People, Relationships and Marketing & Communications. Overarching and vital to the success of the strategic objectives is Mary Ann’s ongoing financial sustainability, its identity as a critical partner and key position to address market developments.

COVID-19

Mary Ann’s reaction to the COVID-19 pandemic highlighted how they can move with agility and expedience to ensure their service provision remains safe, effective, caring, responsive and well led.

Mary Ann has continued to ensure their services are available to patients and families within the local area. Mary Ann has worked alongside NHS and other third sector colleagues to help relieve the ongoing pressures on acute services. However, due to the ongoing pressures of COVID-19 and workforce issues the full restoration of all clinical services is unlikely to recommence until the autumn of 2022.

The Job Retention scheme, local government grants and emergency funding programme, for hospices, from NHS England enabled Mary Ann to continue to provide services to its local community and secure a small surplus at yearend.

The emergency funding programme for hospices is classed as restricted income. It came in two phases from April 2020 to March 2021. The funding was for the purpose of making available bed capacity (and in Phase 2 utilisation) and providing community support for people with complex needs.

MARY ANN EVANS HOSPICE

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2021

Current Services

Mary Ann is a community hospice which offers, where possible, home or hospice based specialised services to patients who live within Nuneaton, Bedworth, North Warwickshire, and surrounding areas, and are suffering from a life-limiting illness.

The Trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.

Our current services include:

The provision of a service will always depend on adequate resources being identified. Where a service is commissioned through the public provision of a personal budget to the intended recipient an appropriate charge may be made. Where a new service results in a cost benefit to another provider or commissioner, a share of this benefit should be transferred to Mary Ann.

Significant Activities and Future Direction

In response to COVID-19 CQC suspended, in March 2020, their routine inspection programme. They continued to use a mix of onsite and off-site monitoring to ensure the public had assurance as to the safety and quality of the care received. In 2020 Mary Ann took part in a CQC Engagement meeting which went well with good outcomes.

As the CQC emerged from the pandemic they are further developing their monitoring approach. In accordance with this approach, they carried out a review, on 7 April 2022, of the data available to them about the Mary Ann Evans Hospice. They reported that they had not found any evidence that they needed to carry out an inspection or reassess their rating at that stage. They will continue to monitor data regarding Mary Ann.

NB. This does not amount to an assessment of the rating for this service under section 46 of the Health and Social Care Act 2008.

The Board of Trustees highlighted the following as priorities for 2021 to 2022:

As with all hospices Mary Ann relies heavily on the support of their wonderful volunteers. Whilst many had to cease their volunteering activities during the pandemic their input remains vital to the ongoing provision of our services and income generation efforts.

MARY ANN EVANS HOSPICE

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2021

Achievements and Performance

Financial Review

The financial statements show a surplus for the year 2021 of £197,628 (2020 - surplus of £80,295). The surplus was achieved following additional support reflecting our additional activity, received in the latter part of the year, from local and national government initiatives, NHS England and Coventry & Warwickshire CCG. The local community offered financial and practical support to Mary Ann throughout the year.

Mary Ann’s Reserves Policy 2020 (reviewed January 2022) seeks to balance spending the maximum amount of income raised as soon as possible after receipt, with maintaining the minimum level of Reserves to ensure uninterrupted operation and provide time to adjust to financial fluctuations.

It is the policy of Mary Ann that unrestricted funds, which have not been designated for a specific use, should be maintained at a level equivalent to between three and six months’ expenditure. Mary Ann’s Board of Trustees (the Trustees) consider reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue Mary Ann’s current activities while consideration is given to ways in which additional funds may be raised, and/or savings made.

Following a number of deficit account years Mary Ann’s reserves had significantly reduced and during 2020 Mary Ann was working outside of its Reserves policy. The Board of Trustees recognised the weakness of Mary Ann’s financial sustainability and the need to maximise organisational impact through robust financial management, effective investments and growing the support of the community.

Should reserves move significantly away from target, specifically below 2 months or above 12 months then the recovery plan prepared by the Chief Executive will be presented for consideration by the Trustees.

Principle Funding Sources:

Risk Assessments:

Risk Registers have been established by Mary Ann and are reviewed and updated by the subcommittees and the main Board. The Trustees are satisfied that they have assessed the major risks to which Mary Ann is exposed; that actions are taken to mitigate or manage those risks, and that there are systems in place to monitor any changes.

Structure, governance and management

Mary Ann is a Company Limited by Guarantee (company number: 02750734). The Board of Trustees, who meet at least every 2 months, govern Mary Ann. There are 4 subcommittees which look at the Business (strategy, health & safety and financial management), Clinical Governance, People (human resources and volunteers) and Marketing, Income Generation & Communication.

During the COVID-19 pandemic a Strategy Working Group was formed to temporarily cover the role of the subcommittees – this last met in May 2021.

The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:

J Barrett C Bartup H Daniel (Resigned 18 March 2021) S Darby (Appointed 19 May 2022) S Dibb (Simkin) R Dollen (Appointed 19 May 2022) K Fawcett (Appointed 20 May 2021) S Hancox (Resigned 20 May 2021) P Handslip

MARY ANN EVANS HOSPICE

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2021

Trustees cont’d:

M Hawkins C McKenzie (Appointed 19 May 2022) H Norgrove P Robson T Storrow (Appointed 19 May 2022) J Town

None of the trustees has any beneficial interest in the company. All of the trustees are members of the company and guarantee to contribute £1 in the event of a winding up.

The Trustees of Mary Ann are also Directors for the purpose of Company Law and under the Company’s Articles are known as members of the Board of Directors. Under the requirements of the Memorandum and Articles of Association the Directors and Chair are elected to serve for a period up to three years after which they must be re-elected at the next Annual General Meeting. The Chair can be appointed for a second 3 year term but after serving a maximum of 2 terms must retire and cannot be considered for re-election to the post of Chair for a period of 3 years.

The Board of Trustees seeks to ensure that representation on the Board covers all areas. The Trustees bring a mix of skills to the Board, providing financial, corporate and care experiences. When Trustees retire individuals are either approached to offer themselves for election or sought from public advertisement and/or nominations presented to the Board.

Training and induction of new Trustees is undertaken on an informal and ongoing basis via discussions with existing Trustees, attendance at Board Meeting etc.

Key Management Personnel

The Board of Trustees delegate the authority and responsibility for day to day running of Mary Ann to the Chief Executive and the Leadership Team. The Chief Executive throughout the year and at the end of the reporting period was Mrs E M Hancock.

Pay Reviews

Mary Ann’s Clinical staff are linked to the NHS Agenda for Change pay scales and Mary Ann adopts the NHS Cost of Living award, for all staff, every year. In 2021 an increase of approximately 3% increase was applied to salaries. The Chief Executive can, within budget, sanction individual one-off increases as necessary.

Auditor

Dafferns LLP were appointed as auditor to the company on 16 September 2021 and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at the General Meeting on 15 September 2022.

Mary Ann plans to review the provision of audit, accounting and advisory services at least every three years.

Disclosure of information to the auditor

We, the directors of the company who held office at the date of approval of these Financial Statements as set out above each confirm, so far as we are aware, that:

The trustees' report was approved by the Board of Trustees.

C Bartup Trustee Dated: 21 July 2022

MARY ANN EVANS HOSPICE

STATEMENT OF TRUSTEES' RESPONSIBILITIES

FOR THE YEAR ENDED 31 DECEMBER 2021

The trustees, who are also the directors of Mary Ann Evans Hospice for the purpose of company law, are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company Law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.

In preparing these financial statements, the trustees are required to:

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

MARY ANN EVANS HOSPICE

INDEPENDENT AUDITOR'S REPORT

TO THE TRUSTEES OF MARY ANN EVANS HOSPICE

Opinion

We have audited the financial statements of Mary Ann Evans Hospice (the ‘charity’) for the year ended 31 December 2021 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and the notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

MARY ANN EVANS HOSPICE

INDEPENDENT AUDITOR'S REPORT (CONTINUED)

TO THE TRUSTEES OF MARY ANN EVANS HOSPICE

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

Responsibilities of trustees

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

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

Auditor's responsibilities for the audit of the financial statements

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with regulations made under section 154 of that Act.

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

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

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

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

MARY ANN EVANS HOSPICE

INDEPENDENT AUDITOR'S REPORT (CONTINUED)

TO THE TRUSTEES OF MARY ANN EVANS HOSPICE

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/Our-Work/Audit/Audit-and-assurance/Standards-and-guidance/Standards-and-guidance-forauditors/Auditors-responsibilities-for-audit/Description-of-auditors-responsibilities-for-audit.aspx. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the charity’s trustees, as a body, in accordance with part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Dafferns LLP

Chartered Accountants

Statutory Auditor, Eligible to act as an auditor in terms of Section 1212 of the Companies Act 2006 One Eastwood,

Harry Weston Road Binley Business Park Coventry CV3 2UB

Dated: 21 July 2022

MARY ANN EVANS HOSPICE

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 DECEMBER 2021

Unrestricted
Restricted
funds
funds
2021
2021
Notes
£
£
Income from:
Donations and legacies
3
465,558
437,793
Charitable activities
4
759,778
-
Other trading activities
5
581,564
-
Investments
6
2,978
-
Other
8,208
-
Total income
1,818,086
437,793
Expenditure on:
Raising funds
7
583,435
78,959
Charitable activities
8
1,087,223
308,634
Total resources
expended
1,670,658
387,593
Gross transfers
between funds
60,796
(60,796)
Net income/(expenditure) for
the year/
Net movement in funds
208,224
(10,596)
Fund balances at 1
January 2021
1,415,793
471,584
Fund balances at 31
December 2021
1,624,017
460,988		 Total
Unrestricted
funds
2021
2020
£
£
903,351
530,145
759,778
639,647
581,564
475,222
2,978
1,996
8,208
-
2,255,879
1,647,010
662,394
485,937
1,395,857
1,070,182
2,058,251
1,556,119
-
-
197,628
90,891
1,887,377
1,324,902
2,085,005
1,415,793		 Restricted
funds
2020
£
503,909
-
-
-
-
503,909
160,731
353,774
514,505
-
(10,596)
482,180
471,584		 Total
2020
£
1,034,054
639,647
475,222
1,996
-
2,150,919
646,668
1,423,956
2,070,624
-
80,295
1,807,082
1,887,377

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

MARY ANN EVANS HOSPICE

BALANCE SHEET

AS AT 31 DECEMBER 2021

Notes
Fixed assets
Tangible assets
13
Investments
14
Current assets
Stocks
15
Debtors
16
Cash at bank and in hand
Creditors: amounts falling due within
one year
17

Net current assets
Total assets less current liabilities
Income funds
Restricted funds
19
Unrestricted funds		 2021
£
£
1,276,498
2
1,276,500
1,296
140,568
746,862
888,726
(80,221)
808,505
2,085,005
460,988
1,624,017
2,085,005		 2020
£
£
1,250,020
2
1,250,022
3,983
194,342
506,763
705,088
(67,733)
637,355
1,887,377
471,584
1,415,793
1,887,377		 2020
£
£
1,250,020
2
1,250,022
3,983
194,342
506,763
705,088
(67,733)
637,355
1,887,377
471,584
1,415,793
1,887,377
1,250,022
637,355
1,887,377
471,584
1,415,793
1,887,377

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 December 2021, although an audit has been carried out under section 144 of the Charities Act 2011.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements under the requirements of the Companies Act 2006, for the year in question in accordance with section 476.

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the Trustees on 21 July 2022

C Bartup Trustee

Company Registration No. 02750734

MARY ANN EVANS HOSPICE

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 DECEMBER 2021

Notes
Cash flows from operating activities
Cash generated from operations
24
Investing activities
Purchase of tangible fixed assets
Sale of tangible fixed assets
Investment income received
Net cash used in investing activities
Net cash used in financing activities
Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year		 2021
£
(94,699)
250
2,978		 £
331,570
(91,471)
-
240,099
506,763
746,862		 2020
£
(19,150)
-
1,996		 £
68,771
(17,154)
-
51,617
455,145
506,763

MARY ANN EVANS HOSPICE

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

1 Accounting policies

Charity information

Mary Ann Evans Hospice is a registered charity reference number 1014800, and company number 02750734 and is governed by its Memorandum and Articles of Association dated 25th September 1992 (updated 16 September 2005).

1.1 Accounting convention

The financial statements have been prepared in accordance with the charity's governing document] the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)". The charity is a Public Benefit Entity as defined by FRS 102.

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

1.4 Income

Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

Assets for distribution are recognised only when distributed. Assets given for use by the charity are recognised when receivable. Stocks of undistributed donated goods are not valued for balance sheet purposes.

1.5 Expenditure

All expenditure is accounted for on an accruals basis and has been classified under heading that aggregate all costs related to that category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

MARY ANN EVANS HOSPICE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2021

1 Accounting policies

1.6 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold land and buildings 2% straight line Leasehold land and buildings Over the lease term Fixtures and fittings 25% reducing balance Motor vehicles 25% reducing balance

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in net income/(expenditure) for the year.

1.7 Fixed asset investments

Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred.

A subsidiary is an entity controlled by the charity. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.8 Impairment of fixed assets

At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

1.9 Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. Items held for distribution at no or nominal consideration are measured the lower of replacement cost and cost.

Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.

1.10 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

MARY ANN EVANS HOSPICE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2021

1 Accounting policies

1.11 Financial instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.

1.12 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.13 Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.14 Leases

Rentals payable under operating leases, including any lease incentives received, are charged as an expense on a straight line basis over the term of the relevant lease.

MARY ANN EVANS HOSPICE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2021

1 Accounting policies

1.15 Irrecoverable Vat

The charity is registered for Vat and vat is recoverable on the operation of the taxable supplies made via the shops and through sales of merchandise, and in respect of non-business supplies as allowed by Vat Act 1994 section 33.

1.16 Taxation

The hospice has charitable status for taxation purposes and its activities are not subject to corporation tax.

1.17 Volunteers

Many of the hospice's activities are performed by volunteers and the donated costs of these activities are not reflected in the financial statements. The trustees consider that it would be impossible to quantify the notional cost of the voluntary assistance received by the hospice.

2 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 differ 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 affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Critical judgements

Donated goods

Donated goods for resale are not included in valuation prior to being sold as it has been deemed impractical to measure the fair value of the goods and the cost of valuation would outweigh the benefit to the users of the accounts.

Support cost allocation

Support costs are allocated between the expenditure categories of the statement of financial activities on a basis designed to reflect the use of resources. Costs relating to a particular activity are allocated directly.

MARY ANN EVANS HOSPICE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2021

3 Donations and legacies

Unrestricted
Restricted
funds
funds
2021
2021
£
£
Donations and gifts
277,384
-
Legacies receivable
127,263
-
Other general grants
60,911
437,793
465,558
437,793
Charitable Activities
NHS grants for contract services - Community Services		 Total
Unrestricted
Restricted
Total
funds
funds
2021
2020
2020
2020
£
£
£
£
277,384
323,599
-
323,599
127,263
51,500
-
51,500
498,704
155,046
503,909
658,955
903,351
530,145
503,909
1,034,054
Total
Total
2021
2020
£
£
759,778
639,647		 Total
2020
£
323,599
51,500
658,955

4 Charitable Activities

MARY ANN EVANS HOSPICE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2021

5 Other trading activities

5 Other trading activities
Unrestricted Unrestricted
funds funds
2021 2020
£ £
Fundraising events 5,718 26,984
Shop income 575,846 448,238
Other trading activities 581,564 475,222
6 Investments

7











UnrestrictedUnrestricted
funds
funds
2021
2020
£
£
Interest receivable
2,978
1,996
Raising funds
Unrestricted Restricted
Total Unrestricted
Restricted
Total
funds
funds
funds
funds
2021
2021
2021
2020
2020
2020
£
£
£
£
£
£
Fundraising and publicity
Staging fundraising events
11,179
-
11,180
10,487
-
10,487
Advertising
1,504
-
1,504
5,513
-
5,513
Other fundraising costs
6,064
-
13,304
6,725
8,662
15,387
Staff costs
119,023
- 119,023
92,286
-
92,286
Depreciation and impairment
8,603
-
8,603
3,613
954
4,567
Fundraising and publicity
146,373
- 146,373
118,624
9,616
128,240
Trading costs
Operating charity shops
192,697
- 192,697
180,076
-
180,076
Staff costs
239,004
78,959 317,963
177,201
148,466
325,667
Depreciation and impairment
5,362
-
5,362
10,036
2,649
12,685
Trading costs
437,062
78,959 516,021
367,313
151,115
518,428
583,435
78,959 662,394
485,937
160,731
646,668

MARY ANN EVANS HOSPICE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2021

8
Charitable activities expenditure
Staff costs
Depreciation and impairment
Patient care
Office costs, heat and light
Repairs and equipment
Training and recruitment
Mini bus running costs
Other costs
Share of support costs (see note 10)
Share of governance costs (see note 10)
Analysis by fund
Unrestricted funds
Restricted funds		 Community
Services
Lymphoedema
Support
Services
£
£
877,828
65,918
45,365
4,320
4,722
531
26,288
2,957
22,649
2,548
5,232
589
4,440
495
694
78
987,178
77,436
172,723
27,272
4,560
720
1,164,461
105,428
877,329
95,350
287,132
10,078
1,164,461
105,428		 Family
Support
Total
2021
£
£
84,859 1,028,605
4,320
54,005
649
5,902
3,615
32,860
3,114
28,311
719
6,540
605
5,500
95
867
97,976 1,162,590
27,272
227,267
720
6,000
125,968 1,395,857
114,544 1,087.223
11,424
308,634
125,968 1,395,857		 Total
2020
£
1,087,406
33,487
12,920
33,406
12,217
2,928
4,655
655
1,187,674
232,032
4,250
1,423,956

MARY ANN EVANS HOSPICE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2021

9 Description of charitable activities

Community Services

The provision of 24/7 home and hospice-based services including a Well-being Centre (formally known as Day Hospice), Hospice at Home and Rapid Response.

Lymphoedema Support

Secondary to cancer lymphoedema support, treatment, and advice.

Family Support Services

An Adult and Children’s Bereavement and Family Support service.

10 Support costs

Staff costs
Insurance
Office costs
Travel expenses
Volunteer expenses
Legal and professional expenses
Bank charges
Audit fees
Analysed between
Charitable activities		 Support
costs
Governance
costs
£
£
162,097
-
30,871
-
6,284
-
336
-
3,517
-
18,435
-
5,727
-
-
6,000
227,267
6,000
227,267
6,000		 2021
£
162,097
30,871
6,284
336
3,517
18,435
5,727
6,000
233,267
233,267		 2020
£
169,649
26,973
9,371
1,007
2,340
17,987
4,455
4,500
236,282
236,282

Support costs are allocated between the expenditure categories of the statement of financial activities on a basis designed to reflect the use of resources.

Governance costs includes payments to the auditors of £6,000 (2020- previous auditor £4,500) for audit fees.

11 Trustees

None of the trustees (or any persons connected with them) received any expenses or benefits from the charity during the year.

MARY ANN EVANS HOSPICE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2021

12 Employees

The average monthly number of employees and full time equivalent (FTE) during the year was:

Employment costs
Wages and salaries
Social security costs
Other pension costs		 2021
Number
63		 2021
FTE
47		 2020
Number
80
2021
£
1,418,557
113,747
155,872
1,688,176		 2020
FTE
48
2020
£
1,393,804
112,276
168,928
1,675,008
The number of employees whose annual remuneration
were:
£60,000-£70,000
13
Tangible fixed assets
Freehold land
and buildings
£
Cost
At 1 January 2021
1,599,217
Additions
-
Disposal
-
At 31 December 2021
1,599,217
Depreciation and impairment
At 1 January 2021
406,001
Depreciation charged in the year
31,984
Released on disposal
-
At 31 December 2021
437,985
Carrying amount
At 31 December 2021
1,161,232
At 31 December 2020
1,193,216		 was £60,000 or more
Leasehold
land and
buildings
Fixtures and
fittings
£
£
76,362
152,313
-
94,699
-
(8,494)
76,362
238,518
76,362
108,566
-
32,488
-
(8,010)
76,362
133,044
-
105,747
-
43,747		 2021
Number
2
Motor
vehicles
£
23,214
-
-
23,214
10,157
3,264
-
13,421
9,793
13,057		 2020
Number
2
Total
£
1,851,106
94,699
(8,494)
1,937,311
601,086
67,737
(8,010)
660,813
1,276,498
1,250,020

MARY ANN EVANS HOSPICE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2021

14 Fixed asset investments

Cost or valuation
At 1 January 2021 & 31 December 2021
Carrying amount
At 31 December 2021
At 31 December 2020
Other investments comprise:
Notes
Investments in subsidiaries
23
15
Stocks
Raw materials and consumables		 Other
investments
£
2
2
2
2021
2020
£
£
2
2
2021
2020
£
£
1,296
3,983		 Other
investments
£
2
2
2
2021
2020
£
£
2
2
2021
2020
£
£
1,296
3,983
2
2
2020
£
2
2020
£
3,983

Stocks relate to fundraising goods. In addition at 31st December 2021 the trustees estimate the value of donated goods held at the shops to be £80,000 (2020: £80,000) which is not included in the financial statements until sold.

16 Debtors

Debtors
Amounts falling due within one year:
Trade debtors
Other debtors
Prepayments and accrued income		 2021
£
15,811
86,007
38,750
140,568		 2020
£
8,668
160,656
25,018
194,342

MARY ANN EVANS HOSPICE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2021

17 Creditors: amounts falling due within one year

Creditors: amounts falling due within one year
Deferred income
Trade creditors
Accruals and deferred income		 2021
£
49,675
11,652
18,894
80,221		 2020
£
45,600
13,332
8,801
67,733

18 Retirement benefit schemes

Defined contribution schemes

The charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charity in an independently administered fund.

The total charge to profit or loss in respect of defined contribution schemes was £155,872 (2020 - £168,928).

Scheme one

Certain of the hospice's employees are eligible to join the National Health Service pension scheme. The scheme is a defined benefit multi employer scheme administered for the benefit of NHS employers, general practices, and other bodies allowed under the discretion of the secretary of state. The charity is unable to identify its share of the underlying notional assets and liabilities of the scheme, and accordingly has accounted for the scheme as if it was a defined contribution scheme. The employers contribution to the scheme for the current year was based on a contribution rate of 14.3% of pensionable pay (2020: 14.3%) with employees contributing between 5.6% and 9.3% in accordance with NHS revised contribution rules.

Scheme two

Following the legislation being introduced leading to auto-enrolment of employees into a pension scheme, a further scheme was set up by the charity to meet the legislative requirements. The charity and employees are able to make separate contributions into this scheme which is a defined contribution scheme and is not final salary linked.

MARY ANN EVANS HOSPICE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2021

19 Restricted funds

The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific

Movement in funds Movement in funds Movement in funds Movement in funds
Balance at Incoming Resources Transfers Balance at Incoming Resources Transfers
Balance at
1 January resources expended 1 January resources expended 31 December
2020 2021 2021
£ £ £ £ £ £ £ £
£
The Warren Project 482,180 - (10,596) - 471,584 - (10,596) -
460,988
Small restricted grants - - - - - 3,974 (3,974) -
-
Rapid Response - 4,000 (4,000) - - - - -
-
Canopy Grant - 8,662 (8,662) - - - - -
-
Hospice UK - 342,780 (342,780) - - 181,060 (181,060) -
-
Coronavirus Job Retention Scheme - 148,466 (148,466) - - 78,959 (78,959) -
-
WCC Infection control - - - - - 173,800 (113,004) (60,796)
-
482,180 503,908 (514,504) - 471,584 437,793 (387,593) (60,796)
460,988

MARY ANN EVANS HOSPICE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2021

19 Restricted funds

The Warren project represents funds obtained to assist the building and furnishing of the "The Warren". Grant funding of £529,867 was awarded by NHS England towards the new building which was completed at a total cost of £846,000.

The hospice receives various small grants for specific purposes, grants are spent in accordance with their requirements. Any small restricted grants obtained to acquire fixed assets are transferred to unrestricted funds after the assets have been acquired, discharging the restriction.

Rapid Response relates to funding to provide a rapid response home-based service round the clock to people approaching the end of life. As part of this project WPH Charitable Trust provided some specific funding to cover staff costs.

The Canopy Grant has been provided to use against the purchase of a Canopy.

The Hospice UK relates to the NHSE awarded funding to allow the hospice to make available bed capacity and community support from April 2020 to July 2020 to provide support to people with complex needs in the context of the COVID-19 situation and to provide bed capacity and community support from November 2020 to March 2021 for the same purpose.

The Coronavirus Job Retention Scheme (CJRS) is a government wage support measure and is designed to protect jobs in during the economic impacts of the COVID-19 pandemic.

The Warwickshire County Council Infection Control Scheme is to assist with the reduction of the rate of Covid-19 transmission within and between care settings and to provide support with the additional cost that results in compliance with government guidance.

MARY ANN EVANS HOSPICE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2021

20
Analysis of net assets between funds
Unrestricted
Restricted
2021
2021
£
£
Fund balances at
31 December 2021
are represented by:
Tangible assets
815,510
460,988
Investments
2
-
Current assets/(liabilities)
808,505
-
1,624,017
460,988		 Total Unrestricted
2021
2020
£
£
1,276,498
778,437
2
2
808,505
637,355
2,085,005
1,415,794		 Restricted
2020
£
471,583
-
-
471,583		 Total
2020
£
1,250,020
2
637,355
1,887,377

21 Operating lease commitments

At the reporting end date the charity had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Within one year
Between two and five years		 2021
£
126,283
310,792
437,075		 2020
£
50,947
36,320
87,267

22 Related party transactions

Remuneration of key management personnel

The remuneration of the 5 (2020: 3) key management personnel is as follows.

2021 2020
£ £
Aggregate remuneration 268,035 156,420

MARY ANN EVANS HOSPICE

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2021

23 Subsidiaries

These financial statements are separate charity financial statements for Mary Ann Evans Promotions Ltd

Details of the charity's subsidiaries at 31 December 2021 are as follows:

Name of undertaking
Registered		 Nature of business Class of % Held
office shares held Direct
Mary Ann Evans Promotions
England		 Dormant Ordinary 100.00
Ltd
24 Cash generated from operations 2021 2020
£ £
Surplus/(deficit) for the year 197.628 80,295
Adjustments for:
Investment income recognised in statement of financial activities (2,978) (1,996)
Depreciation and impairment of tangible fixed assets 67,737 50,739
Loss of disposal of tangible fixed assets 234
Movements in working capital:
(Increase)/decrease in stocks 2,687 (220)
(Increase)/decrease in debtors 53,774 (87,474)
(Decrease)/increase in creditors 8,413 (18,173)
Increase/(decrease) in deferred income 4,075 45,600
Cash generated from operations 331,570 68,771
25 Analysis of changes in net funds
The charity had no debt during the year.