2022-03-31-accounts

Annual Report and Accounts 2021- 2022

Every one of us Making every day count.

We’re here for the community because of ~~the community.~~ 2 | Havens Hospices

CONTENTS

TENTS
INTRODUCTION	4
Introduction	5
Message from our Chief Executive	5
Message from our Chair of Trustees	6
Statement of Trustees’ Responsibilities	7
OBJECTIVES AND CORE CHARITABLE ACTIVITIES	8
Objectives and Core Charitable Activities	9
Strategic Report	9
Benefciaries of Havens Hospices’ Care – Outcomes and Impact	9
FAIR HAVENS	10
LITTLE HAVENS	12
WELLBEING	14
HAVENS HUB AND COMPASSIONATE COMMUNITIES	16
Havens Hub	17
Compassionate Communities	17
INCOME GENERATION – FUNDRAISING AND RETAIL	18
Income Generation – Fundraising and Retail	19
Income and Expenditure	21
OUR PEOPLE AND CULTURE	22
Our People and Culture	23
Employee Engagement	23
Volunteers	24
Equality, Diversity and Inclusion	24
Quality and Compliance	26
Stakeholder Engagement	26
STREAMLINED ENERGY AND CARBON REPORTING (SECR)	28
FUTURE PLANS	30
FINANCIAL REVIEW & STATEMENT	34
STRUCTURE, GOVERNANCE AND MANAGEMENT	57
INDEPENDENT AUDITOR’S REPORT	61

Annual Report and Accounts 2021-2022 | 3

INTRODUCTION

Introduction

Havens Hospices is an Essexbased charity with a long and rich history in caring for local people of all ages when told their illness cannot be cured.

The support is extended to those closest to them too, cushioning the impact of caring, and grieving, for a loved one.

Palliative and supportive care are provided through two hospices – Fair Havens and Little Havens – as well as homes of patients and through communitybased services.

Message from our Chief Executive

A key part of hospice care is about making time for important moments in life. Havens Hospices’ experienced healthcare professionals slow down, listen, and respond to the needs of patients and their families. We do our best to deliver what matters most to them.

Like any high-quality service delivery, what appears effortless is deceptive. Behind the scenes is a dynamic and fast-paced environment that removes the service user from the unnecessary details of the delivery and focuses on the experience. When working at this pace there is rarely time to reflect on our achievements and look for where we might seek to make improvements, but this document provides such an opportunity.

With the events of Covid-19 requiring a unique operational response over the last two years, we have now inevitably focused on our recovery and growth. During the pandemic, we saw an increase in individual financial support, trust and government donations that enabled us to continue delivering our care. That encouraged us to meet the increased demand for our services by growing our workforce and care services.

However, the recovery has seen our traditional methods of fundraising significantly impacted and we continue to be challenged by the cost of living

crisis. It seems that the challenge of increasing demand and decreasing income will be with the Third Sector for some time.

But charities were built upon the principle that sees every challenge as an opportunity and we are now championing innovation across the whole organisation whilst remaining true to our purpose. The last two years have brought about significant changes to the hospice sector, as have the local commissioning structures that underpin our statutory income. A new spirit of collaboration and shared learning is pervading the health and social care landscape.

Havens Hospices now sits at the forefront of local collaboration and we have successfully elevated our influence in the new Integrated Care System. We are building diverse streams of income to create a stronger, more sustainable charity that will continue to provide essential palliative and end-of-life services for adults, children and young people across Southend and Essex.

Steve Smith

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Message from our Chair of Trustees

It is a pleasure to look back over this year and recognise the achievements of Havens Hospices.

Responding to the ongoing pandemic has been a catalyst for change and many positive new ways of working across the organisation. Increasing staff involvement has brought renewed energy and ideas which have enabled us to revitalise and develop in all areas including our governance. Enhanced systems and structural changes in our teams now ensure that we can see the data that we need at the right time to effectively fulfil our legal and moral obligations as a Board of Trustees.

We will continue to use the Charity Commission Governance Code to benchmark our governance processes and ensure that they achieve effective oversight and assurance of the risks, challenges and developments impacting the charity whilst allowing operational colleagues to get on with the ‘everyday’ tasks of delivering for those who need us alongside managing a complex organisation.

Trustees are proud to lead the governance of a charity with such resilience and commitment to inclusion and innovation. Over the year we have welcomed a number of new board members representing the worlds of nursing, business, fundraising and digital marketing. All have brought valuable skills and knowledge which is already supporting the development of our future strategy and all have been impressed with the professionalism of those who work and volunteer for the charity.

The passion and care demonstrated every day by our tremendous workforce of staff and volunteers are second to none. We thank them sincerely for all that they give. We are committed to supporting their wellbeing and increasing their involvement across all areas of the organisation. We would like to express our particular thanks to the Leadership Team whose dedication to looking out and forwards for ways to work smarter and more effectively for the benefit of Havens Hospices is a huge asset for the future strength of the charity. They have guided the charity through uncertain times with skill, confidence and assurance.

The past few years have shown us all that anything can happen and taught us the value of being flexible, agile and effective with our thinking and resources. The year ahead will bring new challenges; the Board looks forward to continuing to challenge and support the whole of Havens Hospices to 'Making every day count' for more people in our community.

Elisabeth Mell

6 | Havens Hospices

Statement of Trustees’ Responsibilities

The trustees present their annual report (including strategic report) and the audited financial statements for the year ended 31 March 2022.

Reference and administrative information set out on page 47 form part of this report.

The financial statements comply with current statutory requirements, the Memorandum and Articles of Association, the requirements of a directors’ report as required under company law, and the Statement of Recommended Practice - Accounting and Reporting by Charities: SORP applicable to charities preparing their accounts in accordance with FRS 102.

Caring at Havens Hospices April 2021-March 2022

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Patients supported across all Havens
Hospices care services
1,424
Adult Care at Fair Havens Environmental Impact
228 Patients who stayed at Fair Havens Switched to suppliers who provide
Hours of care delivered
within the In Patient Unit 59,496
100%
Patients supported by Fair Havens Hub 289
( 21%  from previous year) renewable electricity
Adult Care at Home Volunteers
Patients supported in their volunteers
own home
860 contributing around
413
Hours of care delivered in
patient homes 8,905 £1,523,880
( 17%  from previous year) worth of their time
Children and Young People’s Care Wellbeing Team
Children cared for by Little Havens
344 Children and Young People’s Service People supported by
( 35%  from previous year) our Wellbeing Team 642
Hours of care delivered ( 9%  from previous year)
within Little Havens 11,880 complementary therapies
3,981 Hours of care delivered in family homes 274 given to patients
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For every pound donated to directly to the charity, around 73p is spent caring for local families when they need us most.

The rest is split between raising awareness of the charity to our supporters, overheads such as our Finance Team (which arranges insurances, processes donations, claims Gift Aid and VAT and manages our bank accounts) and essential fundraising costs, which help us to raise the next pound.

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OBJECTIVES AND CORE CHARITABLE ~~ACTIVITIES~~

8 | Havens Hospices

Objectives and Core Charitable Activities

As set out in the charity’s Articles of Association, we exist to support those in need of hospice care. This is achieved through the provision of a range of palliative and supportive care services, both within the hospices of Fair Havens and Little Havens and in the community through home care and community outreach projects.

Fair Havens covers the adult population of Southend, Castle Point and Rochford, whilst Little Havens support children and young people (up to the age of 25) across the county of Essex.

The Board of Trustees regularly reviews the aims, objectives and activities of the charity. This report looks at what the charity has achieved and its outcomes during the year, ensuring it stays focused on its core purpose.

As a result of reviewing the Charity Commission’s guidance on how the objectives of Havens Hospices bring benefit to those it serves, the Board of Trustees are confident in that the activities carried out during the last 12 months are serving its local communities and contributing value to all those connected with the charity – patients, families, supporters, colleagues and suppliers.

Strategic Report

As the pandemic continued throughout 2021, our focus remained on three key areas: income, patients and staff. Whilst designed to be a short-term measure, the societal and economic challenges persisted throughout this review period:

• Work with our supporters to secure the future of Havens Hospices in Southend, Castle Point and Rochford, and throughout Essex

• Ensure Havens Hospices staff and volunteers are supported to achieve their aims with training, development and suitable wellbeing opportunities

These strategic objectives have been revisited to reflect the recovery from the pandemic. The process and outcome of this are detailed later in the report.

• Remodel our services for our patients and their families in light of the impact of Coronavirus on their lives and choices

Beneficiaries of Havens Hospices’ Care – Outcomes and Impact

Havens Hospices focuses on holistic care – what is important to the patient and their loved ones. As well as nursing and medical

care, this extends to their emotional, psychological and spiritual needs too.

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FAIR HAVENS - ~~ADULT SERVICES~~ 10 | Havens Hospices

Fair Havens - Adult Services

Our Hospice at Home service continued to see patients in their own homes. There was however a 17% increase in the number of hours being provided in a patient 's home compared to the previous year. We were told by some of our families that this was due to pressures on local NHS services and pandemic visiting restrictions. This is reflected in a 17% increase in the number of hours being provided in a patient’s home compared to the previous year.

We had planned to expand our Hospice at Home service to 24/7, but we had been unable to secure the right partner to jointly deliver this project. This now forms part of the charity’s Five Year Strategy (see page 31)

Electronic Prescribing was introduced across our adult hospice services, meaning that our qualified prescribers can issue medication immediately and efficiently as part of their contemporaneous approach to patient record keeping.

The Outcome Assessment Complexity Collaborative (OACC) tool is used across Fair Havens In Patient Unit and Hospice at Home. It’s a form of Integrated Palliative Care Outcome Scale to measure patients’ physical, psychological, emotional and spiritual needs.

Our senior team has been bolstered through the appointments of Head of Adult Services, Medical Director, In Patient-Unit Ward Manager and Hospice at Home Sister. Working alongside our colleagues in the NHS hospital and community services, our integrated team can provide specialist care to patients when and where they need it most.

Having Hospice at Home come in and support me has been amazing. Their visits have allowed me to stay at home and spend time with my family and prevented me from going into the hospital.

It’s lovely to see the team. They help with my personal care and get me ready for the day. They have made sad times into special times by helping me get dressed up for my granddaughter’s wedding which I couldn’t attend. They will take me out for walks in my wheelchair, just around the close where I live, or into the garden to feed my fish.

Fair Havens Hospice at Home has made such a difference to my life, as I’m now able to do more things on my own

Renee

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LITTLE HAVENS - CHILDREN AND YOUNG PEOPLE'S ~~SERVICE~~

12 | Havens Hospices

Little Havens - Children and Young People's Service

Even into last spring, as a result of the pandemic, many families were still in isolation meaning demand for overnight respite was incredibly low. However, this has steadily increased along with demand for our day respite, resulting in a 51% increase in the hours of care provided within the hospice.

We altered our activities to be mainly online, moving to hybrid, which enabled some children and young people to access services they have not been able to access previously. The digital booking system has been extended for more activities, giving more control to families to choose therapeutic sessions suitable for them.

In response to feedback from families, we reviewed our admission processes and introduced online pre-assessment clinics. This has helped to shorten admission time from an average of four hours to one hour, so families can make the most of their respite stay. We now collect feedback on a continual basis after each stay and activity session so we can make rapid changes to our care provision where needed.

Meanwhile, an initiative to deliver end-of-life care in the homes of children who are dying was developed in conjunction with other healthcare partners, community services and tertiary centres.

In her final days, Little Havens made sure that every single day counted. Her days consisted of pampering sessions with her sister, evenings in the grounds watching the sunset together and lots of sensory stories and music therapies.

The hospice is so full of love even during your darkest time, and because of that, her last moments weren’t filled with trauma or pain. Everything the Care Team did just reinforced to us that Bella mattered.

Christine, Bella’s mum.

Bella was supported by Little Havens for 15 years and cared for at the hospice for the end of her life in August 2021.

Due to recruitment challenges across the healthcare sector, .we have been unable to secure enough Registered Nurses to open the hospice building for 24/7 care. Safe staffing levels were implemented for respite ‘blocks’ with flexibility to ensure end of life care.

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Id •apr WELLBEING

Wellbeing

A project to merge therapeutic services within Wellbeing was introduced at Havens Hospices. The four-tier model has reduced pressure on counselling support and shortened the wait time for those needing counselling.

Patients and families now only tell their stories once through our holistic assessment and referral process. This earlier intervention is improving endof-life experience and bereavement outcomes for those supported by our hospice services.

We have seen an increase in post-bereavement contacts and referrals for earlier professional intervention. The demand for bereavement support has increased with a notable increase in community enquiries.

Bereavement Information Packs were tested and trialled within Fair Havens In-Patient Unit to support families once a loved one had died. These will now be rolled out across our community and children’s services to ensure a consistent approach to support grieving families.

Speaking with children about death, dying and bereavement can be very hard, but my advice is to always be honest.

“Children really do know what is happeningand avoiding the 'elephant in the room' can be damaging in the long-term. They deserve to be spoken to, listened to and have the chance to say goodbye to their loved ones.

Jane, Children and Young People’s Service Lead at Havens Hospices

The increased need for intervention postbereavement is reflective of the impact of the pandemic which has exacerbated an individual’s experiences of grief, mental health issues and feelings of isolation. The Wellbeing Team saw a 9% increase in the number of people it supported, compared to the previous year.

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HAVENS HUB AND COMPASSIONATE ~~COMMUNITIES~~

Garry with Occupational ~~Therapist Mary-Ann~~

16 | Havens Hospices

Havens Hub

The Hub (outpatient services at Fair Havens) focuses on maintaining independence and enhancing the quality of a patient's life whilst they are living with illness.

In spring 2021, it reintroduced face-to-face clinics and activities for patients who had undergone a holistic assessment, meaning the sessions were tailored to their needs and desired outcomes. We’ve seen a 21% increase in patients being supported by the Hub, and many patients requiring psychological support as a result of the pandemic, a trend we predict will continue.

One of the new additions is a Motor Neurone Disease (MND) Clinic, building support and relationships to help encourage advanced care planning, which has been accessed and welcomed by healthcare professionals too.

Ten members of staff have been trained to provide the HOPE ( Help in Overcoming Problems Effectively) programme. This is a cognitivebased therapy programme which concentrates on building participants’ existing strengths and resilience to help them cope emotionally, psychologically and practically.

Therapy Through Nature is a programme that has grown in popularity. Connecting with nature, the sessions are improving wellbeing and quality of life for patients whilst restoring skills, personal identity and a sense of purpose through therapeutic gardening activities.

Fair Havens is definitely part of my care plan as my illness progresses. I’ve already discussed end of life and I'm confident that Fair Havens would meet my needs and I would feel very comfortable here.

“I wasn’t frightened at all about coming to the hospice. I understood that Fair Havens was as much about wellbeing as the end of life.

“You never know when you’re going to need the help of a hospice like Fair Havens. Hopefully you won’t, but the important thing is to support its work because otherwise there’ll be lots of people in the community who will not have a positive end of life experience.

Garry, an original member of Therapy Through Nature was supported by Fair Havens Hub and died at the hospice in April 2022.

Compassionate Communities

A pilot project kickstarted our Compassionate Communities scheme, working with St Vincent’s Centre in Southend to train and empower them to support local people, often vulnerable, who have been diagnosed with a serious illness or have experienced bereavement.

helping at the Night Soup Kitchen, both run by St Vincent’s.

A tailored training programme was then delivered to the volunteers at St Vincent’s so they feel more confident in supporting service users who have been diagnosed with a serious illness.

A Counsellor and Social Worker from the Havens Hospices’ Wellbeing Team spent time at St Vincent’s to understand the challenges they face in supporting their clients. These sessions included the Wellness Homeless Women’s Group and

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INCOME GENERATION – FUNDRAISING ~~AND RETAIL~~ 18 | Havens Hospices

Income Generation – Fundraising and Retail

Havens Hospices is a local charity, and most voluntary income comes from local people and organisations.

For much of 2021/2022 many of our traditional events were still impacted by the restrictions in place because of the Covid-19 pandemic. However, many virtual fundraising activities, such as Virtual Quiz Nights, were delivered before a return to more traditional face-to-face activities later in the year. In the summer of 2021 we were able to deliver a Covid-delayed major public art trail in Southendon-Sea, Hares About Town, which attracted 174,000 visitors. This ultimately generated £447,000 for Havens Hospices, predominantly through the auctioning of 30 large hare sculptures.

Every week around 19,000 chances were played through the Havens Hospices Lottery and circa 980 supporters gave a regular monthly gift to the charity. Local and London-based companies supported the work of the charity through direct giving, employee fundraising or through partnerships with the umbrella bodies for hospice care, Together for Short Lives and Hospice UK.

In the year we received an extremely generous £1 million donation from a local business in support of our ongoing work through the pandemic. Gifts received through wills and legacies remain a core area of income for the charity, although we feel behind our projections in 2021/22 after experiencing a slower than expected rate of notifications.

Finally, our 23 charity shops continued to receive a good level of donations but were also impacted by periods of closure through the pandemic. Since fully reopening sales have been strong, particularly in our newly rebranded Leigh-on-Sea Re:Loved shop, and our e-commerce operation has flourished.

Havens Hospices fundraise in accordance with guidance from the Fundraising Regulator, which is the independent regulator of charitable fundraising, established to strengthen the system of charity regulation and restore public trust in fundraising. Havens Hospices is committed to ensuring all its fundraising is clear, honest and open; fair and reasonable; accountable and responsible; respectful and abides by all the codes of fundraising practice.

Havens Hospices does not accept donations from donors where we know, or have good reason to believe, that the person lacks capacity to make the decision to donate or is in vulnerable circumstances which may mean they cannot make an informed decision to donate.

The work we deliver as Havens Hospices means that potentially vulnerable donors are most likely to be patients themselves or recently bereaved relatives. Clear processes are in place for communicating with these audiences and appropriate clinical input is sought to ensure these are appropriate processes, timely and safe for such donors.

Furthermore, we are now capturing and recording date of birth on donor records in order to both ensure donors are of age for lottery or regular gifts but equally that older donors are treated sensitively and with any vulnerability they have.

The Fundraising Team receives regular updates from the Fundraising Regulator, operates within the guidelines of the Code of Practice and fundraising-specific policies are written in line with the code of practice. Fundraising activity is governed by a newly formed Fundraising and Marketing Committee, a subcommittee of the Board of Trustees, who consider the validity, value and ethics of the charities fundraising methods,

Annual Report and Accounts 2021-2022 | 19

providing assurance for our operation in line with the Fundraising Regulator’s code of practice and other relevant guidance and legislation.

Havens Hospices also complies with all relevant legislation including General Data Protection Regulations and Privacy and Electronic Communications Regulations. All Havens Hospices’ supporters receive opportunities in their communications to choose what information they may like to receive and when.

During this year, Havens Hospices has not engaged with any third-party commercial participators, however a policy is being developed to ensure this is managed effectively should it arise in the future. The organisation does work with professional fundraising companies to acquire new donors for the lottery. Regular compliance checks are made on the agency and this is reviewed by the Director of Income Generation and Chief Executive on a regular basis. The professional fundraising company that Havens Hospices currently uses is appropriately registered and follows the Fundraising Regulator Code of Conduct.

The charity has a clear complaints policy and updated fundraising policies to guide the acceptance of donations and appropriate due diligence checks where appropriate. These are checked and monitored via the charity’s governance committees. The charity received eight complaints between April 2021 and March 2022 relating to fundraising activity. All were investigated in line with our Complaints policy and are resolved and closed. None were significant or reportable to any regulatory body. We have had no incidents or complaints reported through the Fundraising Preference Service, Fundraising Regulator, Gambling Commission or the Information Commissioners Office.

20 | Havens Hospices

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OUR PEOPLE ~~AND CULTURE~~ 22 | Havens Hospices

Jamie, Hospice at Home ~~Team Leader~~

Our People and Culture

Following the appointment of a new Head of People and Organisational Development, the People Team has been restructured to ensure effective and professional HR, Volunteer and Learning support. This is available to our diverse mix of colleagues across the organisation.

Fundamental principles have now been introduced:

• Attract and retain talented people

• Create a supportive and inclusive culture

The commitment to match Agenda for Change pay structures for patient-facing staff was made, with the extensive process of this continuing into 2022.

Families often say thank you to me, but they don’t need to thank me because caring for someone at the end of their life is an honour. I feel humbled working with my colleagues and the patients that I see every day. I wouldn’t want to be anywhere else or doing anything else in my nursing career.

Jamie, Hospice at Home Team Leader

• Create a culture of continual learning and development

• Create a framework for everyone to bring their ‘best self’ to work

Employee Engagement

We have expanded the frequency and mechanism of engaging with employees and volunteers. As our workforce is diverse in the location, shift pattern and nature of its day-to-day tasks, we know that ‘one size’ of colleague engagement does not fit all.

Our ‘Staff Forum’ takes place on a regular basis, now supplemented by a ‘Social Committee.’ Both of these feed into the Leadership Team, with actions taken and communicated back as appropriate.

We have a range of newsletters for various audiences – ‘The NiB’ for all colleagues across Havens Hospices, The Trading Post for our retail arm and Care & Quality Matters covering issues and updates for our hospice services. All newsletters are shared with all colleagues, ensuring everyone has the opportunity to

learn about the impact their role has on others.

The Leadership Team also sends out a monthly email with an update on organisation-wide issues and topics.

We use a mixture of email, Microsoft Teams, face-to-face briefings and designed materials to communicate information and encourage engagement.

For the first time, colleagues and external stakeholders were asked to engage with the production of the charity’s five-year strategy, with suggestions and feedback added to the proposal for Trustees and taken into consideration during the creation of department Business Plans.

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Volunteers

Of the whole organisation’s 860 volunteers, 603 work in its 24 charity shops, with a typical shop having two members of paid staff and, depending on size, an average pool of 25 volunteers. Volunteers also support paid staff within our hospices including all areas such as care, catering, housekeeping, gardening, fundraising and administration support.

The charity estimates that, in the year to March 2022, its volunteers gave some 166,000 hours of time (based on a minimum commitment of four hours per week), which - using the valuation method advised by the National Council for Voluntary Organisations (based on minimum wage per hour) - contributed an economic saving to the charity of around £1,523,880.

Our Board of Trustees pays tribute to their continued invaluable contribution, carrying out essential tasks to enable the organisation to function in an effective and professional way. The number of volunteers disclosed here includes the trustees, some of whom are also directors of the charity’s subsidiary companies (see page 47).

Equality, Diversity and Inclusion

We want all of Havens Hospices to think inclusively and to be inclusive. As an organisation, we are committed to providing an environment that values diversity and promotes equality and inclusion.

We strive to do this through our Equality, Diversity and Inclusion programmes for staff and patients, in partnership with the National Centre for Diversity. We are also a recognised Mindful Employer and Disability Confident Employer.

It’s our aim to provide a supportive environment in which to work and volunteer where we will treat each other with dignity and respect. Reasonable adjustments and support are provided for disabled employees to ensure they are not unfairly restricted by disability, or by perceptions of it.

A project to ensure inclusive spiritual care was implemented across the organisation, resulting in an increase in spiritual care support. This project was displayed as a poster at the Hospice UK Conference.

24 | Havens Hospices

Quality and Compliance

Our dedicated team ensure the highest standards are being met with the delivery, training and impact reporting of our care teams across Havens Hospices.

Havens Hospices attended the Hospice UK Conference in November 2021, showcasing five posters and one presentation, with attendance from representatives from each of our care services.

Quality Improvement Projects (QIP) was an initiative introduced to empower colleagues across the organisation (care and non-care) to make changes, no matter what the size, to enhance our working practices. Eight projects were implemented last year, ranging from a collaborative Motor Neurone Disease Clinic to a bespoke dispensing box for syringe drivers.

Stakeholder Engagement

Havens Hospices has a continual engagement with its beneficiaries. A ‘Patient Feedback Project’ was implemented by the Quality and Compliance Team to gather qualitative comments from all corners of our care services, both during an episode of care or at the end through feedback cards with a digitalised option to send comments via the website.

For the first time, we undertook a stakeholderwide engagement approach to create our fiveyear strategy – requesting feedback, suggestions and contributions from our healthcare partners, supporters, suppliers and the wider community. This was sought through 1-1 networking, PR, email and social marketing.

This is promoted around the hospice buildings (including patient bedrooms at Fair Havens), within the bereavement packs and emailed to the Little Havens families following a respite stay or activity visit.

26 | Havens Hospices

Havens Hospices Team at Hospice UK Conference 2021

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STREAMLINED ENERGY AND CARBON ~~REPORTING (SECR)~~ 28 | Havens Hospices

Streamlined Energy and Carbon Reporting (SECR)

The Havens Hospices Climate Change Strategy will capture our commitment to reducing our emissions of global warming gases and provide a framework for managing the changes needed across the entire organisation. Every action will deliver results for our community, the environment and the planet. Our ambition is to achieve net zero carbon emissions by 2030. The charity has a dedicated group of colleagues who come together regularly, to discuss ways we can make energy savings under the Climate Change Strategy.

Under the Companies (Directors’ Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018, Havens Hospices is mandated to disclose our UK energy use and associated greenhouse gas (GHG) emissions. As a minimum Havens Hospices is required to report those GHG emissions relating to natural gas, electricity and transport fuel, as well as an intensity ratio under the Streamlined Energy & Carbon Reporting (SECR) Regulations.

The period covered under the report for the purposes of the Streamlined Energy & Carbon Reporting Regulations is the last Havens Hospices financial year, 1 April 2021 to 31 March 2022.

Scope of report

The scope covered under this report includes:

• Permanent premises-related energy use – natural gas consumption (scope 1), UK electricity (scope 2) and energy-related transmission & distribution (scope 3).

• Transport – Fuel purchased for rented vehicles by Havens Hospices (Scope 1) and private staff and volunteer mileage (Scope 3).

Quantification and reporting methodology

Havens Hospices has complied with ESOS Phase 2 and has established internal methodology for collating energy and transport usage data. In assessing which GHG emissions to report on for the purposes of SECR, Havens Hospices has followed the 2013 (updated 2019) UK Government environmental reporting guidance and has used the 2019 UK Government GHG Conversion Factors for Company Reporting in the calculation of reported figures.

Energy efficiency actions and targets

Havens Hospices has continued to invest in LED lighting whenever practical. An extensive roll-out of LED lighting has taken place at Little Havens, including office locations and the replacement of the legacy Sodium lighting in the visitor’s car park.

The electricity supply at both Fair Havens and Little Havens has been moved to 100% renewable sources from October 2021 and January 2022 respectively. The charity is planning to move its gas supply at Fair Havens to 100% renewable from August-22.

Element	2021/2022(tCO2e)	2021/2022(tCO2e)
Gas consumption – at premises where Havens Hospices holds control over meteringand invoicing (SCOPE 1)	148.26	49.434
Owned Transport – for vehicles rented by Havens Hospices for workpurposes(SCOPE 1)	63.29	87.421
UK Electricity – at premises where Havens Hospices holds control over meteringand invoicing (SCOPE 2)	130.94	301.210
TOTAL (tCO2e) SCOPE 1 & 2	342.49	438.066

Annual Report and Accounts 2021-2022 | 29

FUTURE PLANS

Future Plans

Creating a longer-term plan for care at Havens Hospices has been a blend of optimism and caution, trepidation and excitement.

We know that demand for hospice care is increasing as our population is ageing and living for longer with complex health and social needs. The restrictions of the pandemic highlighted the fear and isolation that comes with illness, death and bereavement. We know that good, holistic hospice care can reverse this.

However, we’re faced with significant challenges to provide this. As a charity relying almost entirely on donations, income may be the most obvious. The recruitment of healthcare staff is an issue facing the entire sector. Resilience needs to be woven into the fabric of the organisation to ensure we are prepared to face any future health crises.

Our strategy was created collaboratively; built on external research and reports, using data collated from our progress so far, projections from our local healthcare partners and the engagement and expertise of our workforce.

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Ambition
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To support everyone facing complex or incurable illnesses to live well and die well by providing access to quality compassionate care when they need it most

Strategic Objectives

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Priorities
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To give true choice To challenge the To embed hospice to patients over narrative of hospice care in all corners how, when and care and champion of our local where they are palliative and community cared for supportive care Prioritise our Elevating our Building a People Influence Stronger Future

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Outcomes
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Department strategy - every strategy must contribute to the priorities

Business plans - the high level activities that will achieve the department strategy

Department plans - detailed operational plans with team targets to work towards

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Under these headings, we’re planning to:

• Expand our Hospice at Home services through recruitment and collaboration

• Remove barriers so people can make a direct and easier referral to our hospice services

• Increase therapeutic services and activities, including Palliative Consultant-led clinics

• Create stronger transitional pathways in and out of care services for all ages

• Reach more people with different palliative conditions by widening our referral routes

• Challenge any system that isn’t putting the patient first, including our own

• Empower local groups and charities supporting underrepresented communities experiencing barriers to hospice care through Compassionate Communities schemes

• Be present at more local events and within the education sector to support difficult conversations about death, dying and bereavement

• Talk openly and honestly about the difficult subjects surrounding death

• Build relationships within Primary Care and Integrated Care Systems to ensure end-of-life care remains a strategic priority

The Havens Hospices Five Year Strategy can be read in full on our website

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32 | Havens Hospices
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Financial review 2021-2022

The trustees are pleased to present the financial results for the year which show a net surplus of £1,433k (2021: £2,763k).

Total gross income for the year was £12,189k, 5.5% below the £12,907k received in the previous year. Of this, total, income from donations and legacies, net of the associated costs of generating this income, totalled £4,121k (2021: £5,933k).

Trading activities generated £1,934k of net income, 213% above the £908k produced in 2021. This was as a direct result of the end of the COVID restrictions. The Charity’s 23 shops reopened in April 21. The weekly hospice lottery continued, however challenge style fundraising events continue to be impacted following COVID.

The Charity received a “one off” donation of £1,000,000 in the year from a Corporate Donor. The Charity also received numerous donations from both new and existing donors, many of whom gave frequently significant amounts.

The Trustees would like to thank the many friends and supporters of Havens Hospices for their donations and bequests. They would also like to thank the thousands of volunteers who give their time so generously.

Income derived from charitable activities was generated from statutory sources, which in 2022 totalled £2,371k (2021: £2,391k).

Total expenditure on charitable activities for the year was £7,163k (2021: £6,988).

The charity did not generate any realised gains on its investment portfolios, these have all been liquidated (2021: £nil). There were no unrealised losses in the period (2021: £nil).

The charity's cash position increased over the year with £2,699k of cash being held at 31 March 2022 (2021: £1,701k), in addition to £6,055k of cash investments (2021: £6,048k). The reasons for the £998k increase in total cash and cash equivalents are detailed in the Statement of Cash flows on page 38.

Principal risks and uncertainties

Although the Charity and its subsidiaries have various risks surrounding their operations, going into 2022/23 the main risk for the Charity is still the significant decreased levels of fundraising income following Covid-19. During the coming year the Charity will form a property company to hold legacy assets as rental properties to enhance our balance sheet, invest our income and provide an additional income stream.

We are innovative in our approach to raising income and are investing into our local

communities to raise awareness and support for our work. We recruit Young Ambassadors to represent us in their communities. and increase the use of social media to generate more interest from potential volunteers.

~~STATEMENTS~~

Annual Report and Accounts 2021-2022 | 33

The trustees take seriously their responsibility to ensure that actual and potential risks to the organisation, its clients and visitors are identified, and that all necessary and appropriate steps are taken to manage them. To achieve this, the trustees have delegated to their sub-committees and to staff at all levels of the organisation responsibility for managing risk in their respective areas. Each board committee maintains a highlevel risk register, which collectively provide the basis for the trustees’ overarching risk register. Staff and volunteers throughout the organisation receive specific training on risk awareness, assessment and management. For managing day to day risks, the organisation also operates a computerised risk management database system.

The charity also undertakes business continuity planning as part of its risk management strategy. There are three key risks for Havens Hospices over the next 12 months. All three risks are separate but interlinked.

The first risk is workforce shortage. This is a national risk that was identified in 2019 by the NHS Long Term Plan and has now been exacerbated by the coronavirus pandemic. In May 2022, the NMC reported a 13% increase in leavers from the healthcare profession since 2021.

Havens Hospices mitigation to prevent loss of hospice healthcare professionals was to improve the employment experience and match NHS pay scales. This has reduced the risk and delivered improvements, but workforce shortage is still a national concern.

The second risk is the combination of the rising cost of salaries caused by matching NHS pay scales and the cost of living crisis. To mitigate this we are now developing new commercial opportunities to increase our income.

The third risk is the reduction in fundraised income. This has arisen due to a combination of the residual effects of the pandemic and the continuing impact of the cost of living crisis. Our trading company continues to flourish through its retail offer, but traditional events and activities are not getting the participation we expect.

Mitigation for this risk is underway through investigations into alternative commercial activities with the intention of diversifying our income. These risks are monitored at board level by Trustees.

Investment powers and policy

The trustees' policy for management of cash is to hold funds deemed surplus to immediate operational requirements in a range of interestbearing term deposit accounts with differing maturity dates, spread across high-quality UK banks or building societies to mitigate risk.

At 31 March 2022, a total of £6,055k (2021: £6,048k) was held in bank or building society deposits due to mature in more than three months but less than two years, which are classified in these accounts as current asset investments, and £2,699k held in deposits of three months’ notice or less, including instant access accounts (2021: £1,701k), which are classified in these accounts as cash in hand and at bank.

Ethical investment policy

This policy states that Trustees will not invest directly in a company if it carries out activities which are directly contrary to the charity’s purposes and, therefore, against its interests and those of its beneficiaries. Our current plans are to spend surplus funds within 2-5 years on expanded patient services, and therefore all funds are invested in cash deposits.

Reserves policy and going concern

Reserves are required, if necessary, to bridge any gap between spending on the charity’s services and the income it receives from all sources, to invest in services and future income generation, and to fund future initiatives. The trustees recognise the need to hold adequate reserves as part of their overall risk management strategy.

The charity’s overall reserves increased this year by £1,433k as a result of the net surplus (2021: £2,763k).

34 | Havens Hospices

All Restricted and designated funds are excluded from the trustees’ computation of the organisation’s free reserves. Free reserves at March 2022 were, therefore, £9,420k, an increase of £1,718k on the previous year (2021: £7,702k).

Free reserves at 31 March 2022 represent more than eight months’ expenditure. Our current reserves policy requires 3 months expenditure. In the event that the free reserves are expected to fall below £3,000,000 in the short term, the income and expenditure will be reviewed and cost savings implemented to reach the five-year plan to March 2027.

The current economic uncertainty is having a negative impact on expected future income. The Charity currently reviews, periodically, income and expenditure for the current year ending March 2022 and forecast through to March 2027. Having reviewed the post COVID and strategic risks facing the charity, the budget and business plan for the periods 2022 to 2023 and the overall cash levels held, the trustees consider that sufficient reserves are held at 31 March 2022 to manage those risks successfully.

The trustees therefore consider that there is a reasonable expectation that the charity and its subsidiary companies have adequate resources to continue in operational existence for the foreseeable future.

Accordingly, they continue to adopt the going concern basis in preparing the annual report and accounts.

Annual Report and Accounts 2021-2022 | 35

Consolidated statement of financial activities (incorporating an income & expenditure account)

	Note	Restricted £000's	Unrestricted £000's	2022 Total £000's	Restricted £000's	Unrestricted £000's	2021 Total £000's
INCOME FROM: Donations and legacies	2	727	4,630	5,357	2,289	4,716	7,005
Charitable activities: Adult hospice Adult community services Children's hospice Children's community services	3	- - 482 -	981 145 591 172	981 145 1,073 172	- - 408 59	980 228 458 258	980 228 866 317
		482	1,889	2,371	467	1,924	2,391
Raising Funds: Trading activities Other activities	4 5	1,450 9	2,842 160	4,292 169	798 10	2,194 509	2,992 519
TOTAL INCOME		2,668	9,521	12,189	3,564	9,343	12,907
EXPENDITURE ON: Raising funds: Fundraising Costs Trading Activities	12	- 1,054	1,236 1,303	1,236 2,357	81 991	991 1,093	1,072 2,084
Charitable activities: Adult hospice Adult community services Children's hospice Children's community services		878 - 241 460	2.868 914 1,802 -	3,746 914 2,043 460	2,089 - - 674	1,222 1,049 1,954 -	3,311 1,049 1,954 674
		1,579	5,584	7,163	2,763	4,225	6,988
TOTAL EXPENDITURE		2,633	8,123	10,756	3,835	6,309	10,144
Net (expenditure) / income for the year Net movement in funds Reconciliation of funds: Total funds brought forward	6 28, 29	35 35 106	1,398 1,398 25,366	1,433 1,433 25,472	(271) (271) 377	3,034 3,034 22,332	2,763 2,763 22,709
Total funds carried forward	28, 29	141	26,764	26,905	106	25,366	25,472

All of the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above. Movements in funds are disclosed in Notes 28 and 29 to the financial statements.

36 | Havens Hospices

Balance Sheet As at 31 March 2022

Company number: 02805007

	Note	The Group £000's 2022 £000's 2021	The Group £000's 2022 £000's 2021	The Charity £000's 2022 £000's 2021	The Charity £000's 2022 £000's 2021
Fixed Assets Tangible assets Investments in subsidiary undertakings	13 14	17,344 -	17,664 -	17,290 75	17,596 75
		17,344	17,664	17,365	17,671
Current Assets Stocks Debtors Current investment cash deposits Cash at bank and in hand	16 17 18	7 1,586 6,055 2,699	23 1,223 6,048 1,701	- 1,420 6,055 2,672	- 1,073 6,048 1,701
		10,347	8,995	10,147	8,822
Liabilities Creditors: amounts falling due within one year	19	(786)	(1,175)	(1,176)	(1,828)
Net current assets		9,561	7,820	8,791	6,994
Total assets less current liabilities Provisions for liabilities and charges	21	26,905 -	25,484 (12)	26,336 -	24,665 -
Net assets	22, 23, 28 & 29	26,905	25,472	26,336	24,665
Funds Restricted funds		141	106	141	106
Unrestricted funds: Designated funds: Fixed assets reserve		17,344	17,644	17,290	17,596
Total designated funds		17,344	17,664	17,290	17,596
General funds		9.420	7,702	8,905	6,963
Total unrestricted funds		26,764	25,366	26,195	24,559
TOTAL FUNDS	28, 29	26,905	25,472	26,336	24,665

Approved by the trustees on 28 October 2022 and signed on their behalf by

Terry Harding - Treasurer

Annual Report and Accounts 2021-2022 | 37

Consolidated statement of cash flows

Company number: 02805007

For the year ended 31 March 2022

For the year ended 31 March 2022
	2022 £000's £000's		2021 £000's £000's
Cash fows from operating activities: Net cash provided by operating activities Cash fows from investing activities: Dividends, interest and rents from investments Proceeds from sale of fxed assets Purchase of fxed assets Proceeds from withdrawal of cash investment deposits Purchase of cash investment deposits Proceeds from sale of non-cash investments	25 88 (260) - -	1145	47 - (240) 1,226 (4,500) 1,000	3,358
Net cash provided by investing activities		(147)		(2,467)
Change in cash and cash equivalents in the year Cash and cash equivalents at the beginning of the year		998 1,701		891 810
Cash and cash equivalents at the end of theyear		2,699		1,701

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

Reconciliation of net income to net cash fow from operating activities:
	2022 £000's	2021 £000's
Net income reported for the year Depreciation charges Dividends, interest and rents from investments Proft /( Loss) on sale of fxed assets Decrease in stocks (Increase)/ Decrease in debtors Decrease in creditors (Increase) / Decrease in provisions	1,289 621 (25) 7 17 (363) (389) (12)	2,763 647 (47) 8 36 441 (483) (7)
Net cashprovided by operating activities	1,145	3,358

Analysis of cash and cash equivalents:

Cash in hand and at bank (total cash and cash equivalents)	At 1 April 2021 £000's 1,701	Net Cash Flows £000's 998	At 31 March 2022 £000's 2,699

38 | Havens Hospices

Notes to the financial statements

For the year ended 31 March 2022

1. Accounting policies

(a) Statutory information

Havens Hospices is a company limited by guarantee and is incorporated in the UK. The registered and operational office address is 226 Priory Crescent, Southend on Sea, Essex, SS2 6PR.

• (b) Basis of preparation and consolidation The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice, which is applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applying in the UK and Republic of Ireland (FRS 102 - the Charities SORP FRS 102), with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), and with the Companies Act 2006.

Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy or Note.

These financial statements consolidate the results of the charitable company and its wholly owned active subsidiaries held at the balance sheet date of 31 March 2022:

• Havens Hospice Trading Company Limited (registered company no. 2582455)

• Havens Development Company Limited (registered company no. 6245406)

Transactions and balances between the charitable company and its subsidiaries have been eliminated from the consolidated financial statements.

Balances between the companies are disclosed in the Notes to the charitable company's balance sheet. Intragroup transactions and balances are disclosed in Note 10.

A separate Statement of Financial Activities for the charity itself is not presented because the charitable company has taken advantage of exemptions afforded by section 408 of the Companies Act 2006.

The trustees also do not consider that there are any areas of uncertainty affecting accounting estimations at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next reporting period. Key judgments that the charitable company has made which have a significant effect on the accounts include determining the value of legacy income to accrue at the end of the financial year, in accordance with the charity's policy for income recognition.

(c) Public benefit entity

The charitable company meets the definitions of a public benefit entity under FRS 102.

(d) Going concern

Havens Hospices reported free reserves at 31 March 2022 of £9,420,000. At the end of July 2022 we have reported deficit of (£996,074) against a deficit budget of (£431,312), resulting in a negative variance of (£564,761) against budget and cash of £8,727,000 (year end) the trustees consider that there are no material uncertainties about Havens Hospices ability to continue as a going concern. Further details are included in the trustees' report

Annual Report and Accounts 2021-2022 | 39

(e) (i) Incoming resources -

donations and legacies

Income is included in the SOFA when the charity has entitlement to the funds, any performance conditions attached to the income have been met, it is probable that the income will be received, the income is not deferred and the amount can be measured reliably. Income received in advance of the provision of a specified service is deferred until the criteria for income recognition are met.

Legacy income is recognised at the earlier receipt or when the charity has been notified of its entitlement, probate has been granted, and estate accounts have been provided enabling the charity to measure the value of its entitlement reliably. Where the criteria for income recognition have not been met for legacies which have been notified to the charity, the income is treated as a contingent asset and the total disclosed in the Notes to these accounts (see Note 2).

(f) Donations of goods and services

• Donated goods are recognised as income when the economic benefit from their use can be measured reliably. Items donated for sale via charity shops, or for use as raffle prizes or by auction at fundraising events, are recognised as income when sold or when income is generated from them rather than on receipt. The principal 'donated goods' recognised in these financial statements is the provision of free drugs and medical supplies by local pharmacies or NHS hospitals. The value included in the accounts is the amount the charity would have paid to obtain supplies of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt. The charity receives no donated services other than time generously given by its volunteers, for which no value is included in the financial statements in accordance with the Charities SORP.

(g) Interest receivable

Income from government and other grants, whether ‘capital’ grants or ‘revenue’ grants, is recognised when the group 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.

Coronavirus job retention scheme income and other coronavirus support income is recognised when the Charity has entitlement to the funds, any performance conditions attached to the income have been met, it is probable that the income will be received and that the amount can be measured reliably.

• (ii) Incoming resources - charitable activities Income from government and other grants, whether ‘capital’ grants or ‘revenue’ grants, is recognised when the group 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.

• Interest on funds held on deposit is included when receivable and the amount can be measured reliably.

(h) Expenditure and irrecoverable VAT

• Expenditure is recognised once there is a legal obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:

• Costs of raising funds relate to the expenditure incurred in inducing third parties to make voluntary contributions to the charity, as well as the cost of activities whose primary purpose is fundraising. This includes costs of trading activities which relate to expenditure on raising funds by means of charity shops, weekly draws and challenge style.

• Expenditure on charitable activities includes all costs of delivering hospice care services, undertaken to further the purposes of the charity, together with the associated direct support costs.

40 | Havens Hospices

Irrecoverable VAT is charged as a cost against the activities for which the underlying expenditure was incurred. Since 1 April 2015, irrecoverable VAT has been minimised as a result of the introduction of Section 33 VAT relief for palliative care charities, under which the charity is able to recover VAT relating to its core care services and on some fundraising costs, in addition to a proportion of the VAT incurred on corporate overheads.

• (i) Allocation of support and governance costs Resources expended are allocated to the appropriate activities under the headings identified in (h) above, with spend on charitable activities being subdivided between the four main areas of the charitable company's care services as defined on pages 6-9. The cost of overall direction and administration of the charity, comprising the salary and overhead costs of the executives, finance and human resources functions, is apportioned to the charitable activities, activities for raising funds and trading activities as set out in the analysis of expenditure note (Note 12). The apportionment is based on an estimation of the relative use of these central overhead resources by the respective activities. Costs incurred in the governance of the charity and its trading company, which result primarily from constitutional and statutory requirements, are apportioned to key activities on a similar basis.

(j) Pensions

A number of the group’s employees contribute to either defined contribution or Group Personal Pension Schemes in which the employers participate, or to the NHS pension scheme. Further details are set out in Note 9. The group’s contributions to these schemes are charged to the Statement of Financial Activities when they fall due.

(k) Operating leases

Annual rentals, net of all aggregated lease inducements where applicable, are charged to the profit and loss account on a straight-line basis over the whole term of the lease.

(l) Tangible fixed assets and depreciation Items of equipment or other assets of an enduring nature are capitalised where the purchase price, individually or as part of a single project, exceeds £5,000.

Depreciation charges commence when an asset is brought into use, and are spread evenly at rates calculated to write down the cost of each asset to its estimated residual value over its expected useful life. Depreciation is applied to all fixed assets except freehold land, and is calculated at the following rates:

Land is held at cost - No depreciation Freehold Buildings - over 25 to 100 years as appropriate

Fixtures and fittings, furniture, equipment and shop-fit costs - over 7 years or over useful life if shorter

Motor vehicles - over 4 years

Computer hardware and software - over 3 years or over useful life if longer

Assets are reviewed for impairment if circumstances indicate that their carrying value may exceed their net realisable value and value in use.

(m) Investments

Investments in subsidiary undertakings are stated at cost in the charity's accounts, and are eliminated as a consolidation adjustment in the group financial statements.

(n) Cash investments, and cash at bank and in hand Cash deposits are classified as fixed asset investments, whereas deposits held for more than three months but less than one year, and which are not part of the day to day cash balances of the charitable company or its subsidiaries, are classified as current asset investments. Cash at bank and in hand includes cash in current accounts or with deposits maturing in three months or less from the date of acquisition.

Annual Report and Accounts 2021-2022 | 41

Transfers between funds are carried out in order to:

(o) Stocks

Stocks of donated items for resale in the charity shops are not valued, as the trustees consider that it is impractical to apply a value to these items and that the costs of attempting to do so would outweigh any benefits. Consequently, the stock value carried in the group's balance sheet relates entirely to bought-in goods not yet sold by Havens Hospices Trading Company. These stocks are valued at the lower of cost and net realisable value, with cost value based on purchase prices - including any invoiced delivery or packaging cost - on a first in, first out basis. Net realisable value is the price at which stocks can be sold in the normal course of business after allowing for costs of sale. Provision is made where necessary for obsolete, slow moving or defective stocks.

(p) Creditors and provisions

Creditors and provisions are recognised where the charity or its subsidiaries have a present obligation resulting from a past event that will probably result in the transfer of funds to a third party, and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due. The charity and its subsidiary undertakings only have financial assets and liabilities of a kind that qualify as basic financial instruments.

i) designate funds reflect the carrying value of fixed assets.

ii) release designate funds for other specified purposes, New Adult Hospice. This project is now complete.

iii) recognise that restrictions placed on capital grants have been satisfied by their expenditure, or

iv) cover any deficiency in restricted funds.

(r) Taxation

The charitable company is exempt from corporation tax as all of its income is charitable and is applied for charitable purposes. Available taxable profits arising in subsidiary companies which are not charities sharing Havens Hospices' objects are donated to the parent charity under gift aid.

(q) Funds

Restricted funds are those where the purpose for use has been restricted by the givers. Expenditure which meets the relevant criteria is charged to the appropriate restricted funds.

Designated funds are unrestricted funds set aside by the trustees for specific purposes.

Unrestricted funds are monies which can be used for any of the charitable company’s operations at the trustees’ discretion.

42 | Havens Hospices

2. Income from donations and legacies

2. Income from donations and legacies
Other restricted £000's	Unrestricted £000's	2022 Total £000's
Donations and voluntary income Legacies COVID funding received from Hospice UK 291 - 436	3,509 1,121 -	3,800 1,121 436
727	4,630	5,357
Other restricted £000's	Unrestricted £000's	2021 Total £000's
Donations and voluntary income Income from Coronavirus Job Retention Scheme Legacies COVID funding received from Hospice UK 462 - - 1,827	2,989 518 1,209 -	3,451 518 1,209 1,827
2,289	4,716	7,005

Legacy income includes accruals for bequests where the charity has been notified of its entitlement, probate has been granted, and estate accounts or other documents evidencing the estate value have been provided to enable the charity to measure the value of its entitlement reliably. The charity has reviewed the legacy entitlements notified to it and has accrued £,1,570 (2021: £201,570.00) in line with this criteria. A total of £363,499 (2021: £870,206) of legacy pipeline which does not meet the new estimation criteria is, however, treated by the charity as a contingent asset at March 2022.

3. Income from charitable activities

3. Income from charitable activities
Restricted £000's	Unrestricted £000's	2022 Total £000's
CCGs NHS England revenue funding - 482	1,889 -	1,889 482
482	1,889	2,371
restricted £000's	Unrestricted £000's	2021 Total £000's
CCGs NHS England revenue funding - 467	1,924 -	1,924 467
467	1,924	2,391

Annual Report and Accounts 2021-2022 | 43

4. Income from trading activities

4. Income from trading activities
Restricted £000's	Unrestricted £000's	2022 Total £000's
Charity shops Weekly draw subscriptions Challenge fundraising events 1,450 - -	1,605 996 241	3,054 996 241
1,450	2,842	4,291
restricted £000's	Unrestricted £000's	2021 Total £000's
Charity shops Weekly draw subscriptions Challenge fundraising events 798 - -	1,149 1,001 44	1,947 1,001 44
798	2,194	2,992

5. Other Income

5. Other Income
Other restricted £000's	Unrestricted £000's	2022 Total £000's
Training & Staf Meals Investments Disposal Proceeds - Fixed Assets Insurance Proceeds - 9 - -	127 3 5 25	127 12 5 25
9	160	169
restricted £000's	Unrestricted £000's	2021 Total £000's
Training & Staf Meals Investments Disposal Proceeds - Fixed Assets Insurance Proceeds - 10 - -	32 37 (8) 448	32 47 (8) 448
10	509	519

6. Net income for the year

6. Net income for the year
This is stated after charging/(crediting)		2022 £000's	2021 £000's
Depreciation Auditor's remuneration: Audit Tax Operating lease rentals payable Loss/ (proft) on disposal of fxed assets		621 23 3 481 3	648 21 5 471 8

44 | Havens Hospices

7. Analysis of staff costs, trustee remuneration & expenses, and cost of key management personnel

Staf costs incurred during the year were as follows:	2022 £000's	2021 £000's
Salaries and wages National insurance Employer's contributions to pension schemes (see Note 9) Redundancy and termination costs	6,038 512 508 -	5,805 491 534 225
Payroll related costs Other staf costs	7,058 462	7,055 334
	7,520	7,389

No trustees received pay or other benefits from the charity in either year, and no trustees received payment for professional or other services supplied to the charity in either year. No trustees claimed expenses for attending to charity business in either year. The value of expenses waived by trustees was not material in either year. The charity paid £708 of premiums in the year for trustee indemnity insurance (2021: £708).

The following number of employees received total remuneration during the year, excluding employer's pension and National Insurance contributions, in the stated value bands:

	2022 No.	2021 No.
£60,001 - £69,999 £70,001 - £79,999 £80,000 - £89,999	1 1 1	2 - 1

The total employee benefits, including National Insurance and pension contributions, of the key management personnel in the 2022 accounting year were £486,707 (2021: £472,324).

8. Staff numbers

8. Staf numbers
	Headcount 2022 No. 2021 No.		Full time equivalent 2022 No. 2021 No.
Adult hospice Adult community services Children's hospice Children's community services Activities for raising income Trading activities Support and governance activities	92 27 48 10 26 61 25	76 32 36 17 27 60 21	68 20 33 7 20 48 21	64 25 28 12 22 47 20
	289	269	217	218

Annual Report and Accounts 2021-2022 | 45

9. Pensions and benefits

Past and present employees are covered by the provisions of the two NHS Pension Schemes. Details of the benefits payable and rules of the Schemes can be found on the NHS Pensions website at www.nhsbsa.nhs.uk/pensions. Both are unfunded, defined benefit 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 defined 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.

In order that the defined benefit obligations recognised in the financial statements do not differ 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”. 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 financial data for the current reporting period, and is accepted as providing suitably robust figures for financial 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 Office.

b) Full actuarial (funding) valuation

The purpose of this valuation is to assess the level of liability in respect of the benefits 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.

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 benefits 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 benefits or member contributions are required. The 2016 valuation reports can be found on the NHS Pensions website at https://www.nhsbsa.nhs.uk/nhs-pensionscheme-accounts-and-valuation-reports.

The combined contributions payable by the group into all pension schemes for the year amounted to £507,551 (2021: £534,000). Contributions of £37,597 (2021: £58,000)

46 | Havens Hospices

were outstanding at the year end and are included in creditors.

In addition, the group contributes to an employee life assurance scheme, for which the contributions payable were £14,264 (2021: £13,470)

10. Related party transactions

Other than the related party transactions between group companies noted below and the transactions disclosed in Note 7 (payments to employee pension schemes and employment benefits paid to key management personnel and to their related parties), there were no other related party transactions requiring disclosure (2021: £nil).

All of the disclosed transactions with related parties were made within the normal course of business, including any restrictions applied to donations which were restricted to purposes which were already part of the charity's approved business plan.

During the year, donations were received from trustees totalling £2,726 (2021: £7,793) and from key management personnel of £141 (2021: £665).

11. Taxation

The charitable company is exempt from corporation tax as all of its income is charitable and is applied for charitable purposes.

Available taxable profits in the subsidiary are donated to the parent charity under gift aid. As a result of this, or due to taxable losses incurred, there were no profits chargeable to corporation tax in any subsidiary company in the 2022 or 2021 tax years.

Annual Report and Accounts 2021-2022 | 47

12. Analysis of expenditure

12. Analysis of expenditure
	Direct costs £000's	Support costs £000's	2022 Total £000's	Direct costs £000's	Support costs £000's	2021 Total £000's
Costs of raising funds Fundraising marketing Trading activities	1,120 2,277	116 80	1,236 2,357	947 1,987	125 97	1,072 2,084
	3,397	196	3,593	2,934	222	3,156
Charitable activities: Adult hospice Adult community services Children's hospice Children's community services	3,333 819 1,827 412	413 95 216 48	3,746 914 2,043 460	2,912 910 1,724 644	399 139 230 30	3,311 1,049 1,954 674
	6,391	772	7,163	6,190	798	6,988
TOTAL EXPENDITURE	9,788	968	10,756	9,124	1,020	10,144

Included in the costs above are governance costs of £93,729 (2021: £99,294).

Governance Costs are an allocation of the Leadership Team costs to oversee the operations of the Charity.

Analysis of support costs	2022 Total £000's	2021 Total £000's
Executive Finance Human Resources and volunteer services	230 289 441	303 296 416
	960	1,015

Of total expenditure, £8,123,000 was unrestricted (2021: £6,309,000), and £2,633,000 restricted (2021: £3,835,000).

Support costs cover central service functions which have been allocated to the main activities of the charity on a basis deemed consistent with the use of those resources. In accordance with the

requirements of Charities SORP FRS 102, governance costs are also apportioned across the organisation's principal activities on a similar basis. The £6,512 of governance costs attributed to the trading subsidiary, Havens Hospices Trading Ltd, are its own (2021: £6,512).

48 | Havens Hospices

13. Tangible fixed assets

13. Tangible fxed assets
For the group:	Freehold land £000's	Property £000's	Assets under construction £000's	Furnishings, fttings, computers & equipment £000's	Motor vehicles £000's	Total £000's
Cost At 1 April 2021 Additions in year Transfer Disposals	2,046 - - -	15,581 - - -	52 - - -	2,019 258 - (20)	35 - - (19)	19,733 258 - (39)
At 31 March 2022	2,046	15,581	52	2,257	16	19,952
Depreciation At 1 April 2021 Charge for the year Disposals	- - -	988 290 -	- - -	996 331 (13)	35 - (19)	2,019 621 (32)
At 31 March 2022	-	1,278	-	1,314	16	2,608
Net Book Value At 31 March 2022	2,046	14,303	52	943	-	17,344
At 31 March 2021	2,046	14,593	52	1,023	-	17,714
For the charity:	Freehold land £000's	Property £000's	Assets under construction £000's	Furnishings, fttings, computers & equipment £000's	Motor vehicles £000's	Total £000's
Cost At 1 April 2021 Additions in year Transfer Disposals	2,046 - - -	15,581 - - -	52 - - -	1,486 251 - (4)	35 - - (19)	19,200 251 - (23)
At 31 March 2022	2,046	15,581	52	1,733	16	19,428
Depreciation At 1 April 2021 Charge for the year Disposals	- - -	988 290 -	- - -	581 263 -	35 - (19)	1,604 553 (19)
At 31 March 2022	-	1,278	-	844	16	2,138
Net Book Value At 31 March 2022	2,046	14,303	52	889	-	17,290
At 31 March 2021	2,046	14,593	52	905	-	17,596

All of the above assets are used for charitable purposes, or for trading purposes the objective of which is to generate profits to fund the core work of the charity.

Annual Report and Accounts 2021-2022 | 49

14. Fixed Assets Investments

14. Fixed Assets Investments
	The Group 2022 £000's 2021 £000's		The Charity 2022 £000's 2021 £000's
Cost of investment in subsidiary undertakings incorporated in the UK	-	-	75	75

The investments in subsidiary companies represent 100% of the issued share capital of: Havens Hospice Trading Company Limited: £75,100 Havens Development Company Limited: £1

15. Subsidiary undertakings' summarised results

At the balance sheet date, the charity had two wholly owned and active subsidiary companies registered in England, Havens Hospices Trading Company (HHT) and Havens Development Company (HDCL). HHT’s principal purpose is to generate income for the benefit of the hospices from the sale primarily of donated goods. Its financial results are consolidated line by line in the Statement of Financial Activities. HDCL was established to undertake the project of building the new Fair Havens adult hospice facility. All work incurred by HDCL in the planning, design and work-in-progress for constructing the new hospice is invoiced to the charity in full periodically, and capitalised in the charity's accounts. HDCL was dormant during the financial year. Available taxable profits from either subsidiary are distributed to the parent charity (see Note 11), and transactions between the parties are disclosed in Note 10.

Summary results for the group:	HHT £000's 2022	HHT £000's 2021	HDCL £000's 2022	HDCL £000's 2021
Gross turnover Gift aided sales transferred to charity Intercompany management charges	1,631 771 36	1,001 236 30	- - -	- - -
Net turnover Cost of sales	2,438 (13)	1,267 (39)	- -	- -
Gross Proft Other operating income Administrative expenses	2,425 165 (2,147)	1,228 1,278 (1,841)	- - -	- - -
Proft for the fnancial year Distribution of profts	443 (718)	665 (257)	- -	- -
Retained proft / (loss) for the fnancialyear	(275)	408	-	-
The aggregate of the assets, liabilities and funds was: Assets Liabilities	714 (57)	984 (52)	- -	235 (235)
Funds	657	932	-	-

The Charity income for the year is £9,060k (2021 £10,416k) The Charity net surplus for the year is £416k (2021 £2,116)

50 | Havens Hospices

16. Stocks

16. Stocks
	The Group 2022 £000's 2021 £000's		The Charity 2022 £000's 2021 £000's
Bought ingoods for resale bytradingcompany	7	23	-	-

17. Debtors

17. Debtors
	The Group 2022 £000's 2021 £000's		The Charity 2022 £000's 2021 £000's
Trade debtors Other debtors VAT recoverable Legacies receivable Prepaid expenses	633 432 77 2 442	319 85 75 202 542	613 389 77 2 339	319 66 75 202 411
	1,586	1,223	1,420	1,073

18. Current investment cash deposits comprise:

18. Current investment cash deposits comprise:
	The Group 2022 £000's 2021 £000's		The Charity 2022 £000's 2021 £000's
Bank and building society deposits	6,055	6,048	6,055	6,048
	6,055	6,048	6,055	6,048

Short term deposits and investments are held to provide a return on short term cash. These are held in pooled funds or deposits of varying maturity dates of more than 3 but less than 24 months.

19. Creditors: amounts due within one year

19. Creditors: amounts due within one year
	The Group 2022 £000's 2021 £000's		The Charity 2022 £000's 2021 £000's
Trade creditors Taxation and social security creditors Pension creditors Accrued expenses Amounts due to subsidiaries Deferred income (see Note 20)	58 129 38 375 - 186	49 107 34 674 - 311	58 129 38 317 448 186	31 107 34 417 928 311
	786	1,175	1,176	1.828

Annual Report and Accounts 2021-2022 | 51

20. Deferred income

20. Deferred income
	The Group 2022 £000's 2021 £000's		The Charity 2022 £000's 2021 £000's
Balance at the beginning of the year Amount released to income in the year Amount deferred in the year	311 (2,237) 2112	287 (1,958) 1,982	311 (2,237) 2,112	287 (1,958) 1,982
Balance at the end of theyear	186	311	186	311

Deferred income comprises monies raised in respect of future fundraising activities which take place or fall due in the following accounting year. The income primarily relates to events such as the London Marathon and receipts in advance for future weekly draws (hospice lottery).

21. Provisions for liabilities and charges

21. Provisions for liabilities and charges
	The Group 2022 £000's 2021 £000's		The Charity 2022 £000's 2021 £000's
Balance at the beginning of the year Released, utilised or transferred during the year Provisions created during the year	12 (12) -	5 - 7	- - -	- - -
Balance at the end of theyear	-	12	-	-

22. Analysis of group net assets between funds: as at 31 March 2022

	Restricted funds £000's	Designated funds £000's	General funds £000's	Total funds £000's
Tangible fxed asset Cash investments Cash in hand and at bank Other net current assets	- - 141 -	17,344 - - -	- 6,055 2,558 807	17,344 6,055 2,699 807
Net assets at end ofyear	106	17,344	9,420	26,905

23. Analysis of group net assets between funds comparisons: as at 31 March 2021

	Restricted funds £000's	Designated funds £000's	General funds £000's	Total funds £000's
Tangible fxed asset Cash investments Cash in hand and at bank Other net current assets	- - 106 -	17,664 - - -	- 6,048 1,595 59	17,664 6,048 1,701 59
Net assets at end ofyear	106	17,664	7,702	25,472

52 | Havens Hospices

24. Operating lease commitments

The group's total future minimum lease payments under non-cancellable operating leases are as follows:

	Land and property 2022 £000's 2021 £000's	Land and property 2022 £000's 2021 £000's	Motor vehicles, printers and photocopiers 2022 £000's 2021 £000's	Motor vehicles, printers and photocopiers 2022 £000's 2021 £000's
Total minimum leases payments falling due: In the year following the balance sheet date In years two to fve	359 496	415 690	19 20	20 11
Net assets at end ofyear	855	1,105	39	31

The charity's total future minimum lease payments under non-cancellable operating leases are as follows:

	Land and property 2022 £000's 2021 £000's	Land and property 2022 £000's 2021 £000's	Motor vehicles, printers and photocopiers 2022 £000's 2021 £000's	Motor vehicles, printers and photocopiers 2022 £000's 2021 £000's
Total minimum leases payments falling due: In the year following the balance sheet date In years two to fve	359 496	415 690	8 15	12 3
Net assets at end ofyear	855	1,105	23	15

25. Operating lease commitments (continued)

The commitments relating to land and property result from rental of shop premises which are subject to non-cancellable operating leases held in the name of the charity. These are licensed by the charity to Havens Hospices Trading Ltd, which occupies the premises for the purpose of operating charity shops.

The minimum lease payments computed for the purpose of this Note have been calculated to the earliest of the lease expiry date or next tenant's break clause date. FRS 102 requires that operating lease incentives such as rent free periods or contributions to fitting out costs should be spread over the full lease period.

26. Capital commitments

There are no capital commitments at the year end (2021: £nil).

27. Purpose of restricted and designated funds

a) Purpose of restricted funds:

Fair Havens - other / Little Havens - other

These represent funds restricted to use within the existing adult or children's hospice respectively. As the day to day operating costs of the hospices generally exceed the value of these restricted gifts, the balance at each year end normally represents just those funds which are restricted to specific purposes within the adult or children's hospice which have not been spent at 31 March 2022.

Little Havens - Martha McGilda trust

This gift from a trust was initially restricted to maritime-related activities, but this was subsequently widened, with the consent of the donor, to apply to all children's activities.

Little Havens - NHS England revenue grant

This represents funding received annually from NHS England's transitional grant which replaced the

Annual Report and Accounts 2021-2022 | 53

former Section 64 grant for children's hospices, pending finalisation and implementation of a proposed new palliative care currency and associated tariff. The income is restricted and can not be used to finance fundraising activities. The grant is spent out each year on the specified purpose of providing hospice services to children in the Essex community, and the level of grant has been agreed in advance by NHS England to remain at the present value until 31 March 2023..

b) Purpose of designated funds:

Fixed assets reserve

Designated funds consist primarily of the fixed assets reserve, which is updated at each year end to reflect movements in asset values by transferring the appropriate increases or reductions from general reserves or, where appropriate, from the appropriate restricted funds.

28. Movement in funds: year ended 31 March 2022

	At the start of the year £000's	Income resources and gains £000's	Expenditure resources and losses £000's	Transfers £000's	At the end of the year £000's
Restricted funds: Fair Havens adult hospice Other	282	727	(878)	-	131
	282	727	(878)	-	131
Little Havens children's hospice Martha McGilda trust NHS England revenue grant Other	5 - (186)	- 482 1,459	- (482) (1,273)	- - -	5 - -
	(181)	1,941	(1,755)	-	5
Other restricted funds	5	-		-	5
Total restricted funds	106	2,668	(2,633)	-	141
Unrestricted funds: Designated funds: Fixed assets reserve New adult hospice appeal reserve	17,664 -	- -	(320) -	- -	17,344 -
Total designated funds	17,664	-	(320)	-	17,344
General funds	7,702	9,521	(7,803)	-	9,420
Total unrestricted funds	25,366	9,521	(8,123)	-	26,764
TOTAL FUNDS	25,472	12,189	(10,756)	-	26,905

54 | Havens Hospices

29. Movement in funds comparisons: year ended 31 March 2021

	At the start of the year £000's	Income resources and gains £000's	Expenditure resources and losses £000's	Transfers £000's	At the end of the year £000's
Restricted funds: Fair Havens adult hospice Other	282	261	(261)	-	282
	282	261	(261)	-	282
Little Havens children's hospice Martha McGilda trust NHS England revenue grant Other	6 - 84	- - 1,476	(1) - (1,746)	- - -	5 - (186)
	90	1,476	(1,747)	-	(181)
Other restricted funds	5	1,827	(1,827)	-	5
	5	1,827	(1,827)	-	5
TOTAL RESTRICTED FUNDS	377	3,564	(3,835)	-	106
Unrestricted funds: Designated funds: Fixed assets reserve	18,087	-	(423)	-	17,664
Total designated funds	18,087	-	(423)	-	17,664
General funds	4,245	9,343	(5,886)	-	7,702
Total unrestricted funds	4,245	9,343	(5,886)	-	25,366
TOTAL FUNDS	22,709	12,907	(10,144)	-	25,472

30. Legal status of the charity

The charity is a company limited by guarantee and has no share capital.

The 109 members of the charitable company at 31 March 2022 (2021: 109) include the trustees, as named on page 63.

The liability of each member in the event of winding up is limited to £1.

Annual Report and Accounts 2021-2022 | 55

Structure, governance and management - Section 172 of Companies Act 2006

Directors and trustees

Havens Hospices (HH) is registered both at Companies House (as a company limited by guarantee) and with the Charity Commission, and trades as “Havens Hospices”, “Fair Havens”, “Little Havens”, “The Heath Centre” and “Leaves of Life”.

Acting in accordance with Section 172 of the Companies Act 2006 (‘Duty to promote the success of a company’) Havens Hospices Trustees consider that they have complied with their duties in regard to Section 172 of the Companies Act 2006 by promoting the Charity’s success in achieving its charitable purpose: offering the best possible palliative and supportive care, Havens Hospices’ company directors are also the trustees of Havens Hospices, and in line with the charity's governing document, they are referred to as "the trustees" in this document. Collectively, they constitute the organisation's governing body.

Acting fairly between members - The Trustees act in good faith to promote the success of the Charity to achieve its charitable objectives. Refer to Objectives and Core Charitable Activities on page 9.

Appointment of trustees

Under the Articles of Association, as amended in September 2019, trustees are elected at the AGM for a term of office of four years.

The trustees have procedures, overseen by the charity's governance sub-committee, for the recruitment, induction, training and support of newly appointed trustees. The trustees determine the range and mix of skills, attributes and diverse experience they believe are required to enable the Board as a whole to fulfil its responsibilities and analyse their existing skills and experience regularly in order to identify those areas they will be looking for particularly when seeking to attract new trustees.

Long-term consequences of decisions -refer to Principal risks and uncertainties on page 33.

Interest of employees – refer to Employee involvement on page 23.

Impact on the community and the environment refer to Services Provided on pages 11-17.

Induction and training of Trustees

Newly appointed Trustees are inducted into the organisation through a programme of formalised training, strategic and policy information sharing and face-to-face meetings both at Trustee and Leadership Team levels.

Trustees are encouraged to visit and meet clinical and professional services staff throughout the hospices, to visit the organisation's charity shops, and to attend external training as well as the relevant sessions of the organisation’s induction programmes. The Chair

also considers the governance committees on

which newly appointed Trustees might be willing and able to serve and how best to utilise their skills and experience for the mutual benefit of both parties.

During the first six months of the appointment of a new Trustee, the Chair, other Trustees and the Chief

~~MANAGEMENT~~ 56 | Havens Hospices

Executive meet with them regularly to ensure they have received a thorough grounding in the work they will be asked to carry out. Additional and ongoing training is provided when needed along with a development programme.

Governance

The trustees usually meet quarterly, with additional meetings being scheduled to consider strategy, budgets and any exceptional or urgent items of business. To ensure good governance, the trustees have appointed sub-committees to act as governance committees. All of the committees are chaired by trustees. The Leadership Team also meets as an executive committee, which reports through the Chief Executive to the trustees.

The trustees exercise a system of delegated responsibility. Other than their governance role and specified reserved matters such as the setting of strategy, approval of policies and of the charity’s Vision and Mission, day to day management of the organisation is delegated to the Chief Executive and Leadership Team through an approved scheme of delegation.

During the period covered by this report, the Trustees continued to review and apply the recommended practice guidance in the Charity Commission Governance Code for larger charities, including amendments made to the Code in 2020. We are committed to implement the new guidance on equality, diversity and inclusion and have taken steps to ensure that we are able to apply the guidance in full in the coming year.

Related parties and relationships with other organisations

At 31 March 2022 the charity had two wholly owned subsidiaries:

Havens Hospices Trading Company Limited – operation of charity shops for the charity

Havens Development Company Limited – design and build new Fair Havens (now dormant)

All trustees give their time voluntarily and receive no benefit from the charity. No trustees claimed any

expenses. All trustees were required to complete and sign an annual declaration of interests and of any relevant gifts and hospitality received during the year.

Remuneration policy for key management personnel

The trustees have identified the Leadership Team as the key management personnel of the charity. The Chief Executive’s pay is determined by the Governance Committee. The remuneration of other Leadership Team members is determined by the Chief Executive in consultation with the Governance Committee. In line with the remuneration policy for all staff, decisions about leadership pay are informed by market testing of salaries and are subject to affordability.

Statement of responsibilities of the trustees

The trustees (who are also directors of Havens Hospices for the purposes of company law) are responsible for preparing the report of the trustees 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 the group and of the incoming resources and application of resources, including the income and expenditure, of the 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

• make judgements and estimates that are reasonable and prudent

• state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements, and

Annual Report and Accounts 2021-2022 | 57

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company 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 the 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:

• there is no relevant audit information of which the charitable company’s auditors are unaware, and

• 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 auditors are 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.

Auditors

Sayer Vincent LLP were re-appointed as the group and charity's auditors during the year and have expressed their willingness to continue in that capacity.

The trustees’ annual report which iincludes the Strategic Reporton page 9, has been approved by the trustees on 28th October 2022 and signed on their behalf by:

Elisabeth Mell, Chair of Trustee

58 | Havens Hospices

Independent auditor’s report to the members of Havens Hospices

Opinion

We have audited the financial statements of Havens Hospices (the ‘parent charitable company’) and its subsidiaries (the ‘group’) for the year ended 31 March 2022 which comprise the consolidated statement of financial activities, the group and parent charitable company balance sheets, the consolidated statement of cash flows and the notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

• select suitable accounting policies and then apply them consistently Give a true and fair view of the state of the group’s and of the parent charitable company’s affairs 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 financial 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 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 Havens Hospices'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.

~~REPORT~~

Annual Report and Accounts 2021-2022 | 59

Other Information

The other information comprises the information included in the trustees’ annual report, including the strategic report, other than the group 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 group financial statements does not cover the other information, and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the group 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 group 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.

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, the financial year for which the financial statements are prepared is consistent with the financial 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 identified 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 financial statements are not in agreement with the accounting records and returns; or

• Certain disclosures of trustees’ remuneration specified by law are not made; or

• We have not received all the information and explanations we require for our audit

Responsibilities of trustees

As explained more fully in the 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 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 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 financial statements

We have been appointed auditor under the Companies Act 2006 and section 151 of the Charites Act 2011 and report in accordance with those Acts.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole

60 | Havens Hospices

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 noncompliance 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.

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 fundraising and finance 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.

or that had a fundamental effect on the operations of the group from our professional and sector experience.

• We communicated applicable laws and regulations throughout the audit team and remained alert to any indications of noncompliance throughout the audit.

• We reviewed any reports made to regulators.

• We reviewed the financial 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 significant transactions that are unusual or those outside the normal course of business

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.

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.

• 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 effect on the financial statements

Annual Report and Accounts 2021-2022 | 61

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.

Fleur Holden (Senior statutory auditor)

15 December 2022

Date for and on behalf of Sayer Vincent LLP, 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

62 | Havens Hospices

Status

The organisation is a charitable company limited by guarantee, incorporated on 30 March 1993 in the UK and registered as a charity in England & Wales on 2 June 1993

Company number

02805007

Charity number

1022119

Registered office and operational address

226 Priory Crescent Southend on Sea Essex SS2 6PR

Other trading names

Fair Havens, Little Havens, The Heath Centre, and Leaves of Life

Trustees

The trustees, who are also directors under company law, who served during the year and up to the date of this report were as follows:

Mr R DeCristofano (Resigned November 21)

Mr T Harding FCA - Honorary Treasurer Mr R Player (Resigned November 21) Mrs M Roberts-Smith Mrs E Mell - Chair Dr P Duell (a.) Wendy Matthews OBE (Appointed November 21) Rebecca Rawl (Appointed November 21) Iain Wilton (Appointed November 21. Resigned February 22) Tom Sweeney (Co-opted November 2021) Rakesh Krishnan (Co-Opted November 2021)

Key management

Mr S Smith BA(Hons) - Chief Executive Officer (b.)

• a. Also a Director of Havens Hospices Trading Company Ltd

• b. Also a Director of Havens Development Company Ltd

Principal Bankers

National Westminster Bank South Essex Commercial Office 3rd Floor, Phoenix Place Christopher Martin Road Basildon Essex SS14 3GQ

Principal Solicitors

BTMK Todmans Barringtons Hockley Road Rayleigh Essex SS6 8EH

Auditor

Sayer Vincent Chartered Accountants and Statutory Auditor LLP Invicta House 108-114 Golden Lane London EC1Y 0TL

Personnel

Ms E Miller RN BSc (Hons) - Director of Care MSc Heathcare Leadership (Merit) (Resigned September 2022) Mr T Abbot BSc - Director of Income Generation (a.)

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Havens Hospices Gamcare Registered Charity Number 1022119