## **Forest Holme Hospice Charity**
**Annual Report and Financial Statements Year Ended 31 March 2023** Charity registration number: 1038021
## **Forest Holme Hospice Charity**
## Contents
|Trustees' Report|1 to 7|
|---|---|
|Reference and Administrative Details|1|
|Statement of Trustees' Responsibilities|8|
|Independent Auditors' Report|9 to 12|
|Statement of Financial Activities|13 to 14|
|Balance Sheet|15|
|Cash Flow Statement|16|
|Notes to the Financial Statements|17 to 26|
## **Forest Holme Hospice Charity**
## Trustees' Report
## Reference and Administrative Details
**Trustees** Angie Smith, Chair of Trustees Rosemary Lewis, Treasurer and Vice-Chair Lynn Cherrett Lavina Clarke Lewis Hamm Karen Johnson Dr. Beverly Lee Charlotte Lilley Richard MacMillan **Senior Management /** Hannah O'Hare, Chief Executive **Leadership Team** Paul Tucker, Communications Manager Sara Fripp, Fundraising Manager **Charity Registration Number** 1038021 **Principal Office** Forest Holme Hospice Charity 5 Seldown Road Poole Dorset BH15 1TS **Auditor** PKF Francis Clark LLP Chartered Accountants Towngate House 2-8 Parkstone Road Poole Dorset BH15 2PW **Solicitors** Coles Millers Solicitors LLP 44-46 Parkstone Road Poole Dorset BH15 2PG
Page 1
## **Forest Holme Hospice Charity**
## Trustees' Report
## **The Chair's Welcome**
On behalf of Forest Holme Hospice Charity, I would like to extend a warm welcome to our annual report. It is with great pleasure that I present to you the achievements and impact we have made over the past year.
As we emerged from the Covid pandemic we faced numerous challenges, but your unwavering support has allowed us to weather the storm.
We are truly grateful for the trust you have placed in us to make a difference in the lives of those affected by life-limiting illnesses and bereavement.
The pandemic brought forth unforeseen obstacles that tested our resilience. However, with your generous contributions, we have been able to adapt and continue investing in vital care for our community.
The Charity's income from fundraising and investment return was £1,169,000 and we spent £876,000 to make a lasting impact on the lives of our patients, their families, and the staff at Forest Holme.
During 2022/23, we allocated £99,213 towards counselling support, ensuring that the care we provide extends into bereavement. Additionally, £27,641 was dedicated to supporting patients with Motor Neurone Disease, a debilitating and progressive illness.
We also continued to fund roles on the in-patient ward and invested £71,278 in nurse training and development to ensure that we retain the highest level of palliative care skills for the future.
The surplus income has been set aside to invest in a refurbishment at Forest Holme Hospice, which will improve the care environment for visitors to the in-patient ward.
As we move forward, we remain committed to improving the lives of those affected by life-limiting illnesses and bereavement.
With your continued support, we will strive to make an even greater impact in the years to come.
Once again, I extend my deepest gratitude to each and every one of you. Your compassion and generosity have made a real difference in the lives of those we serve.
Together, we can continue to provide the care and support that our community needs.
Sincerely, Angie Smith Chair
Page 2
## **Forest Holme Hospice Charity**
## Trustees' Report
## **Our Vision**
is for every adult in our community affected by a potentially life limiting illness to have equal access to the support and service they need, whenever and wherever they are, in order to enhance their quality of life.
## **Our Mission**
is to enhance the lives of adults in Dorset with life limiting illnesses through clinical excellence, exceptional service and compassionate care. We are committed to; providing emotional and practical support; supporting innovation and research; striving for equity of service provision; supporting training and education.
## **Our Values**
underpin and influence all areas of our work. We are: ambitious to support the provision of world class palliative and end of life care; approachable in our manner; committed to delivering the best possible service in a cost-effective manner; person centred in all that we do to ensure the best possible outcome for the individual; transparent in all that we undertake to deliver our organisation’s goals.
## **Trustees Report**
The Trustees present their report and financial statements for the year ended 31 March 2023. The reference and administration set out on page 1 forms part of this report. The financial statements comply with current statutory requirements and the Statement of Recommended Practice - Accounting and Reporting by Charities (SORP FRS102).
Forest Holme Hospice Charity is proud to support Forest Holme Hospice, part of University Hospitals Dorset NHS Foundation Trust, to help provide exemplary Palliative and End of Life Care to over 1,500 patients and their families across Poole, Wimborne and the Isle of Purbeck.
Forest Holme Hospice Charity funded the following services in 2022/23 to achieve its aims:
1. Counselling and Bereavement Support
The charity currently funds the majority of Counselling and Bereavement services at Forest Holme Hospice including; individual and family Bereavement counselling, Palliative care counselling, Oncology patient counselling, Bereavement support groups and Cancer patient support groups.
There were a total of 502 referrals to the Forest Holme counselling and bereavement services in 2022/23. The charity continues to provide funding for permanent and bank contract counsellors as well as funding for various support groups, literature, books and coaching.
2. Palliative Care on the in-patient ward, in the community and within Poole Hospital During 2022/23 the charity continued to fund various clinical roles at Forest Holme Hospice including; overnight health care assistants, 2 ward clerks/receptionists, a therapy assistant, nursing on the inpatient ward, nursing within the hospital palliative care team and specialist nursing within the community palliative care team.
_"It's hard to describe what the people at Forest Holme do. They are exceptional. For us they allowed the family to just be family in the last few days of my Dad's life rather than his carers. They don’t just care for the patient, but they provide a warm hug for all family and friends. Thank you." Daughter of a patient supported by Forest Holme Hospice._
Page 3
## **Forest Holme Hospice Charity**
## Trustees' Report
## 3. A range of complementary therapies
The complementary therapy team based at Forest Holme Hospice continue to make exciting developments in reducing the stress and anxiety associated with cancer or other serious illness. They have also seen excellent results when treating patients with Peripheral Neuropathy which is damage to the nerves that carry messages between the brain, the spinal cord and the rest of the body.
The charity continues to fund a part time therapist who provides a range of complementary therapies including Aromatherapy, Reflexology Reiki and Emotional Freedom Techniques.
## 4. A Motor Neurone Disease specialist
The Charity funds a MND Co-ordinator to support people with MND and their families from diagnosis onwards. The MND Co-ordinator is the main point of contact for people with MND in our local community, and their families.
_“I am grateful to have found support in people like Annemieke, who have been invaluable in helping me navigate the complexities of my condition. Annemieke’s support and skills extend far beyond my medical care. She offers guidance and counsel for my wife and children as well, recognizing the impact that this condition has on our entire family.” Danny._
## 5. Staff development and training
Forest Holme Hospice Charity funds up 2 full time Developmental Specialist Palliative Care Nurse roles to help develop and enhance skills in palliative and end-of-life care.
In December 2022, one of the nurses who had completed the development role successfully secured a permanent role within the Community Specialist Palliative Care team at Forest Holme.
Alongside this, the charity provided funding for all clinical staff to attend training events and conferences.
## 6. Patient Welfare
The charity believe that it is often the little things that make the biggest difference. During 2022/23, the charity funded various patient welfare items including; yoga sessions for cancer patients, Christmas gifts for in-patients, a ward drinks ‘jolly trolley’, daily newspapers, and even a visit from a therapy donkey.
## 7. Staff Welfare
Boosting morale after the pandemic became a priority. The charity fund regular Coffee van visits for staff alongside seasonal treats, team building activities and recognition.
## **Contribution from Volunteers**
Forest Holme Hospice Charity is fortunate to have the support of over 75 dedicated volunteers. Their diverse talents and generosity have been instrumental in propelling our charitable initiatives to the next level. Beyond their individual efforts, our volunteer community has thrived, fostering a sense of belonging and camaraderie. Forest Holme Hospice Charity extends heartfelt gratitude to each volunteer for their selfless dedication, as they remain the driving force behind our impactful journey towards making a difference in the lives of those we serve.
Page 4
## **Forest Holme Hospice Charity**
## Trustees' Report
## **Plans for the future**
Looking ahead, Forest Holme Hospice Charity envisions a future marked by enhanced support and compassionate care for individuals and families facing life-limiting illnesses. In the upcoming year, our focus is on expanding outreach programs to ensure that our services reach even more communities in need. This will include the launch of our befriender service, enhanced bereavement support and investment into community nursing care. Through financial investment, we aim to further strengthen the multidisciplinary team at Forest Holme, comprising of skilled healthcare professionals and dedicated volunteers, to provide comprehensive and personalised care. Additionally, Forest Holme Hospice Charity is committed to strengthening partnerships with University Hospital Dorset and MacMillian Caring Locally to create a more integrated and holistic approach to end-of-life care.
## **Financial Review**
Income for the year totalled £1,169,000 (2021/2022 £859,000) mainly from donations and legacies £947,000 (2021/22 £694,000), other trading activities £191,000 (2021/22 £145,000) and £31,000 (2021/22 £20,000) received from dividends and interest on investments.
Expenditure totalled £876,000 (2021/22 £857,000).
Cash balances amount to £1,338,000 (2021/22 £1,083,000) and represent 56.4% (2021/22 55.6%) of all funds invested.
The Trustees have decided to invest a proportion of the charitable funds in Common Investment Funds (CIFs) and would expect these funds to provide long term capital growth and income. CIFs represent 35.1% (2021/22 44.4%) of all the funds invested. As per the investment plan agreed in 2019/20, a decision was then made to transfer the remaining two tranches of £150,000 from the CCLA Deposit account into the CIF Equity Fund. The monies held in the CIF Equity Fund showed an overall increase/decrease in value of -3.8% (2021/22 5.9%).
£833,000 (2021/22 £866,000), representing 35.1% (2021/22 44.4%) of the total funds is invested on behalf of the Charity (COIF) in Common Investment Funds. £387,000 (2021/22 £356,000), representing 16.3% (2021/22 18.7%) of the total funds is invested with CCLA in a short term deposit account.
Expenditure on our charitable purposes represented 92.0% of our total expenditure (compared to 77.8% in 2021/22). Expenditure on administration and fundraising represented 8.0% of total expenditure (compared to 22.2% in 2021/22).
## **GOVERNANCE**
## **Organisational Structure**
During 2022/23 Forest Holme Hospice Charity was governed by a Board of nine Trustees who met formally six times during the year. Forest Holme Hospice Charity operates a full strategic planning and budgeting process, with detailed budgets and plans being presented to, and approved by, the Board each year, with performance subsequently reported and assessed against those plans and budgets on a bi-monthly basis. Day-to-day running of the charity is delegated to the Chief Executive, who reports to the Chair of Trustees. Appropriate approval levels are in place within the charity regarding requests for funding.
Page 5
## **Forest Holme Hospice Charity**
## Trustees' Report
## **Public Benefit**
The Trustees have given due regard to public benefit when planning the charity's activities, in accordance with the Charity Commission's guidance on Public Benefit. In particular, the Trustees consider how planned activities will contribute to the aims and objectives that have been set. The charity achieves its principal objects and purposes through the provision of patient care and staff welfare at Forest Holme, which provides palliative and end of life care at home, in the hospice and in University Hospitals Dorset NHS Foundation Trust to those living within the Poole, Wimborne and the Purbeck area. These benefits are directly related to the aims of the charity and are fully compliant with the Charity Commission guidance on Public Benefit.
## **Reserves Policy**
The Trustees would expect to hold reserves of a minimum of twelve months’ budgeted expenditure. This takes into account the fact that Forest Holme Hospice Charity does not have any committed long-term income, that income levels fluctuate across the year, and a proportion of costs are fixed in nature, all of which have a direct impact on the cash flow of the organisation. Total unrestricted reserves at 31 March 2023 were £2,311,000 (2021/2022 £2,063,000) which includes designated amounts of £908,000 (2021/2022 £592,000).
The Trustees recognise that the level of reserves is above their minimum requirement at present, but they are comfortable with this position due to the impact the cost of living crisis has had, and will continue to have on the charity’s resources, the nature of the flow of income and the Charity’s medium term commitments having designated £700,000 for the refurbishment of Forest Holme Hospice and £208,000 for the development of its services within the community.
## **Appointment of Trustees**
New trustees are appointed when existing trustees retire or resign. Trustees are normally expected to have a professional background (e.g. legal, accounting, medical, or health), lived experience or direct involvement in palliative care and have a good understanding of the aims and objectives of the charity and its relationship with University Hospitals Dorset NHS Foundation Trust. In the first instance new Trustees are introduced to the existing Trustees. The potential new Trustee is then invited to a Board meeting as an observer before appointment is confirmed by a majority vote of the existing Trustees held at a special meeting of the Board. Trustees receive introductory training to the Charity and an annual update on good governance. Trustees can serve a maximum of three, three-year terms on the Board before they must retire.
## **Investment Policy**
The Trustees have the power to invest in such assets as they see fit. They have decided to invest monies with COIF Charity Funds, managed by CCLA investment Management Ltd. The Investment Policy is reviewed annually by the Board of Trustees.
Page 6
## **Forest Holme Hospice Charity**
## Trustees' Report
## **Risk Management**
The major strategic risks to which the Charity is exposed have been identified and considered by the Board of Trustees. They include the fundraising targets not being delivered due to the cost of living crisis, subsequent rise in cost of living and likelihood of a recession (being addressed by scenario planning, cashflow forecasting and excellent stewardship of supporters), University Hospitals Dorset NHS Foundation Trust discontinues investing in End of Life Care (being addressed by working collaboratively with Macmillan Caring Locally and participating in the Pan Dorset Steering Group for Palliative and End of Life Care) and the clarity and parity of NHS commissioning arrangements (being addressed by representing NHS Hospice Charities on NHS England's Commissioning Steering and Sustainability Work Groups.) These risks, amongst many others, are discussed and systems established to help mitigate those risks. The Charity maintains a risk register which is reviewed at each Board meeting by the Trustees.
Income and expenditure is monitored in total and compared with the approved plan on a monthly basis with the Treasurer to detect trends as part of the risk management process to avoid unforeseen calls on reserves.
## **Pay policy for senior staff**
There are three key management personnel of the Charity including the Chief Executive, Fundraising Manager, and the Communications Manager who comprise 2.9 full time equivalents. Their posts are paid in accordance with the NHS (Agenda for Change) salary framework. Subject to satisfactory performance, they also receive annual increments on the anniversary of their appointment until they reach the top of their band. Where senior employees take on significant ' new responsibilities during the year, salaries are adjusted accordingly.
## **Fundraising Practice**
Forest Holme Hospice Charity is committed to ensuring that our fundraising is undertaken in an accountable, courteous, legal, respectful and transparent manner. We are voluntarily registered with the Fundraising Regulator and all of our activities adhere to the Code of Fundraising Practice. We received no complaints about our fundraising methods during the course of the year. We do not use third party professional fundraisers or commercial participators to undertake any of our fundraising activities and as a small, local charity we feel very strongly that donors are not put under any pressure to donate to our cause, We do not use cold calling to solicit donations, we do not buy or share personal data or allow, anyone else to do so on our behalf. We adhere to best practice with regards to data protection and ensure it is straightforward for anyone to stop all, or particular, contact from us.
## **Disclosure of information to auditor**
Each trustee has taken steps that they ought to have taken as a trustee in order to make themselves aware of any relevant audit information and to establish that the charity's auditor is aware of that information. The trustees confirm that there is no relevant information that they know of and of which they know the auditor is unaware.
The annual report was approved by the trustees of the charity on 11 January 2024 and signed on its behalf by:
......................................... Angie Smith Trustee
Page 7
## **Forest Holme Hospice Charity**
## Statement of Trustees' Responsibilities
The trustees are responsible for preparing the trustees' report and the financial statements in accordance with the United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and applicable law and regulations.
The law applicable to charities requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity 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 accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.
The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charities (Accounts and Reports) Regulations 2008, and the provisions of the constitution. The trustees are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
Approved by the trustees of the charity on 11 January 2024 and signed on its behalf by:
......................................... Angie Smith Trustee
Page 8
## **Forest Holme Hospice Charity**
## Independent Auditor's Report to the Members of Forest Holme Hospice Charity
## **Opinion**
We have audited the financial statements of Forest Holme Hospice Charity (the 'charity') for the year ended 31 March 2023, which comprise the Statement of Financial Activities, Balance Sheet, Cash Flow Statement, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is United Kingdom Accounting Standards, comprising Charities SORP - FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and applicable law (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
- give a true and fair view of the state of the charity's affairs as at 31 March 2023 and of its 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; and
- have been prepared in accordance with the requirements of 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 responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
The trustees did not obtain an audit for the period ended 31 March 2022 as the charity was exempt from the requirement for audit. Consequently the prior period comparatives, being those for 31 March 2022 are unaudited.
## **Conclusions relating to going concern**
In auditing the financial statements, we have concluded that the trustees use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
## **Other information**
The trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
Page 9
## **Forest Holme Hospice Charity**
## Independent Auditor's Report to the Members of Forest Holme Hospice Charity (continued)
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
## **Matters on which we are required to report by exception**
In the light of our knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees' Report.
We have nothing to report in respect of the following matters where the Charities (Accounts and Report) Regulations 2008 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of trustees remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.
## **Responsibilities of trustees**
As explained more fully in the Statement of Trustees' Responsibilities (set out on page 8), the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the charity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.
## **Auditor Responsibilities for the audit of the financial statements**
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Page 10
## **Forest Holme Hospice Charity**
## Independent Auditor's Report to the Members of Forest Holme Hospice Charity (continued)
As part of our audit planning we obtained an understanding of the legal and regulatory framework that is applicable to the Charity. We gained an understanding of the Charity and the sector in which the Charity operates as part of this assessment to identify the key laws and regulations affecting the Charity. As part of this, we reviewed the Charity's website for an indication of any regulations in place and discussed these with the relevant individuals responsible for compliance. The key regulations we identified were Charity legislation, health and safety regulations and breaches of The General Data Protection Regulation ("GDPR"). We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Charities Act 2011 and Charities SORP - FRS 102.
We discussed with management how the compliance with these laws and regulations is monitored and discussed policies and procedures in place. We also identified the individuals who have responsibility for ensuring that the Charity complies with laws and regulations and deals with reporting any issues if they arise. As part of our planning procedures, we assessed the risk of any non-compliance with laws and regulations on the Charity's ability to continue trading and the risk of material misstatement to the accounts.
Based on this understanding we designed our audit procedure to identify non-compliance with such laws and regulations. Our procedures involved the following:
- Enquiries of management and trustees regarding their knowledge of any non-compliance with laws and regulations that would affect the financial statements. As part of these enquiries we also discussed with management whether there could have been any known instances, allegations or suspicions of fraud.
- Reviewed filings with the Charity Commission and whether there were any serious incident reports made during the period.
- Discussed with management if any health and safety incidents have been recorded during the period.
- Review of the GDPR policy and enquiries to management as to the occurance of any reportable breaches.
- Reviewed legal and professional costs to identify any possible non-compliance or legal costs in respect of non-compliance.
- Reviewed Board minutes.
- Audited the risk of management override of controls, including through testing journals entries and other adjustments for appropriateness.
- Reviewed estimates and judgements made in the accounts for any indication of bias.
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. This risk increases the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements as we are less likely to become aware of instances of non-compliance. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment, collusion, omission or misrepresentation.
Page 11
## **Forest Holme Hospice Charity**
## Independent Auditor's Report to the Members of Forest Holme Hospice Charity (continued)
A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
## **Use of our report**
This report is made solely to the charity trustees, as a body, in accordance with 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 trustees those matters we are required to state to trustees in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and its trustees as a body, for our audit work, for this report, or for the opinions we have formed.
......................................
Anne-Marie Gates FCCA FCA (Senior Statutory Auditor) PKF Francis Clark LLP, Statutory Auditor
Towngate House 2-8 Parkstone Road Poole Dorset BH15 2PW
Date: 25 January 2024
Page 12
## **Forest Holme Hospice Charity**
## Statement of Financial Activities
## Year Ended 31 March 2023 (Including Income and Expenditure Account)
|**Note**
**Income and Endowments from:**
Donations and legacies
2
Other trading activities
3
Investment income
4
Total income
**Expenditure on:**
Raising funds
5
Charitable activities
6
Total expenditure
Gains/losses on investment assets
11
Net income
Net movement in funds
**Reconciliation of funds**
Total funds brought forward
Total funds carried forward
14|**Unrestricted**
**funds**
**£ 000**
855
191
31
1,077
(70)
(726)
(796)
(33)
248
248
2,063
2,311|**Restricted**
**funds**
**£ 000**
92
-
-
92
-
(80)
(80)
-
12
12
50
62|**Total**
**2023**
**£ 000**
947
191
31|
|---|---|---|---|
||||1,169|
||||(70)
(806)|
||||(876)
(33)|
||||260|
||||260
2,113|
||||2,373|
The notes on pages 17 to 26 form an integral part of these financial statements. Page 13
## **Forest Holme Hospice Charity**
## Statement of Financial Activities
## Year Ended 31 March 2023 (continued) (Including Income and Expenditure Account)
|**Note**
**Income and Endowments from:**
Donations and legacies
Other trading activities
Investment income
4
Total income
**Expenditure on:**
Raising funds
Charitable activities
Total expenditure
Gains/losses on investment assets
Net income
Net movement in funds
**Reconciliation of funds**
Total funds brought forward
Total funds carried forward
14|**Unrestricted**
**funds**
**£ 000**
595
145
20
760
(190)
(611)
(801)
48
7
7
2,056
2,063|**Restricted**
**funds**
**£ 000**
99
-
-
99
-
(56)
(56)
-
43
43
7
50|**Total**
**2022**
**£ 000**
694
145
20|
|---|---|---|---|
||||859|
||||(190)
(667)|
||||(857)
48|
||||50|
||||50
2,063|
||||2,113|
All of the charity's activities derive from continuing operations during the above two periods. The funds breakdown for 2022 is shown in note 14.
The notes on pages 17 to 26 form an integral part of these financial statements. Page 14
## **Forest Holme Hospice Charity**
## Balance Sheet
## 31 March 2023
|**Note**
**Fixed assets**
Investments
11
**Current assets**
Debtors
12
Cash at bank and in hand
**Creditors: Amounts falling due within one year**
13
**Net current assets**
**Net assets**
**Funds of the charity:**
**Restricted income funds**
Restricted funds
**Unrestricted income funds**
Unrestricted funds
**Total funds**
14|**2023**
**£ 000**
833
238
1,338
1,576
(36)
1,540
2,373
62
2,311
2,373|**2022**
**£ 000**
866
199
1,083|
|---|---|---|
|||1,282
(35)|
|||1,247|
|||2,113|
|||50
2,063|
|||2,113|
The financial statements on pages 13 to 26 were approved by the trustees, and authorised for issue on 11 January 2024 and signed on their behalf by:
......................................... Angie Smith Trustee
The notes on pages 17 to 26 form an integral part of these financial statements. Page 15
## **Forest Holme Hospice Charity**
## Cash Flow Statement
## Year Ended 31 March 2023
|Year Ended 31 March 2023|||
|---|---|---|
|**Note**
**Cash flows from operating activities**
Net cash income
**Adjustments to cash flows from non-cash items**
Investment income
4
Revaluation of investments
**Working capital adjustments**
(Increase)/decrease in debtors
12
Increase in creditors
13
Net cash flows from operating activities
**Cash flows from investing activities**
Purchase of investments
11
Income from dividends
4
Net cash flows from investing activities
Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at 1 April
Cash and cash equivalents at 31 March|**2023**
**£ 000**
260
(31)
33
262
(39)
1
224
-
31
31
255
1,083
1,338|**2022**
**£ 000**
50
(20)
(48)|
|||(18)
191
27|
|||200|
|||(300)
20|
|||(280)|
|||(80)
1,163|
|||1,083|
All of the cash flows are derived from continuing operations during the above two periods.
The notes on pages 17 to 26 form an integral part of these financial statements. Page 16
## **Forest Holme Hospice Charity**
## Notes to the Financial Statements
## Year Ended 31 March 2023
## **1 Accounting policies**
## **Statement of compliance**
The financial statements have been prepared in accordance with the second edition of the Charities Statement of Recommended Practice issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011.
## **Basis of preparation**
Forest Holme Hospice Charity meets the definition of a public benefit entity under FRS 102. The accounts (financial statements) have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant note(s) to these accounts.
## **Going concern**
The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern.
## **Income**
Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the item(s) of income have been met, it is probable that the income will be received and the amount can be measured reliably.
Where income has related expenditure (as with fundraising or contract income), the income and related expenditure are reported gross in the Statement of Financial Activities.
## _**Donations and legacies**_
Donations, grants and gifts are recognised when receivable. In the event that a donation is subject to fulfilling performance conditions before the charity is entitled to the funds, the income is deferred and not recognised until it is probable that those conditions will be fulfilled in the reporting period. Income from Gift Aid tax reclaims is for any donations with relevant Gift Aid certificates recognised in income for the year. Any amounts of Gift Aid not received by the year end are accounted for in income and accrued income in debtors.
Legacy gifts are recognised on a case by case basis following the grant of probate when the administrator/executor for the estate has communicated in writing both the amount and settlement date. In the event that the gift is in the form of an asset other than cash or a financial asset traded on a recognised stock exchange, recognition is subject to the value of the gift being reliably measurable with a degree of reasonable accuracy and the title to the asset having been transferred to the charity.
## _**Grants receivable**_
Income from government and other grants, whether ‘capital’ grants or ‘revenue’ grants, are recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.
Page 17
## **Forest Holme Hospice Charity**
## Notes to the Financial Statements
## Year Ended 31 March 2023 (continued)
## _**Other trading activities**_
Sponsorship from events, fundraising and events registration fees are recognised in income when the event takes place. Lottery income is accounted for in respect of those draws that have taken place in the year.
## _**Investment income**_
Interest on deposit funds held is included when receivable and the amount can be measured reliably by the charity which is normally upon notification of the interest paid or payable by the bank. Dividends are recognised once the dividend has been declared and notification has been received of the dividend due. This is normally upon notification by our investment advisor of the dividend yield of the investment portfolio. Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.
## **Expenditure**
All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All expenditure is accounted for on an accruals basis under the following headings:
## _**Raising funds**_
Costs of raising funds comprises fundraising costs incurred in seeking donations, grants and legacies; investment management fees; costs of fundraising activities and their associated support costs. Fundraising costs do not include the costs of disseminating information of support of the charitable activities.
## _**Charitable activities**_
Expenditure on charitable activities includes the costs of providing specialist palliative care and support, community services, research and other educational activities undertaken to further the purposes of the charity and their associated support costs.
## **Volunteers**
The value of the services provided by volunteers is not incorporated into these financial statements. Further details of their contribution is provided in note 9 to these financial statements and in the Trustees' report.
## **Taxation**
The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.
Page 18
## **Forest Holme Hospice Charity**
## Notes to the Financial Statements
## Year Ended 31 March 2023 (continued)
## **Fixed asset investments**
Fixed asset investments, other than programme related investments, are included at market value at the balance sheet date. Realised gains and losses on investments are calculated as the difference between sales proceeds and their market value at the start of the year, or their subsequent cost, and are charged or credited to the Statement of Financial Activities in the period of disposal.
Unrealised gains and losses represent the movement in market values during the year and are credited or charged to the Statement of Financial Activities based on the market value at the year end.
## **Debtors**
Debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade and other debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the charity will not be able to collect all amounts due according to the original terms of the receivables.
Prepayments are valued at the amount prepaid net of any trade discounts due. Accrued income and tax recoverable is included at the best estimate of the amounts receivable at the balance sheet date.
## **Cash and cash equivalents**
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
## **Creditors**
Creditors are recognised where the charity has 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 are normally recognised at their settlement amount after allowing for any trade discounts due.
## **Fund structure**
Unrestricted income funds are general funds that are available for use at the trustees discretion in furtherance of the objectives of the charity.
Designated funds are unrestricted funds earmarked by the trustees for particular purposes.
Restricted income funds are those donated for use in a particular area or for specific purposes, the use of which is restricted to that area or purpose.
Page 19
## **Forest Holme Hospice Charity**
## Notes to the Financial Statements
## Year Ended 31 March 2023 (continued)
## **Pensions**
Employees of the Charity whose costs are recharged by University Hospital Dorset are entitled to join the NHS Pension Scheme, a defined benefit scheme. The scheme is not designed to be run in a way that enables bodies to identify their share of the underlying scheme assets and liabilities. Therefore, the scheme is accounted for as if it were a defined contribution scheme: the cost to the charity of participating in the scheme is taken as equal to the contributions payable to the scheme for the accounting period. There were no outstanding contributions at the year end. The costs of the scheme are included with the associated staff costs and allocated to raising funds, charitable activties, support and governance costs and charged to the unrestricted funds of the charity.
The charity operates a defined contribution pension scheme for direct employees of the charity. Contributions are charged in the statement of financial activities as they become payable in accordance with the rules of the scheme.
## **2 Income from donations and legacies**
|Donations and legacies;
Donations
Legacies
Grants, including capital grants;
Grants|**Unrestricted**
**funds**
**General**
**£ 000**
308
410
137
855|**Restricted**
**funds**
**£ 000**
10
-
82
92|**Total**
**2023**
**£ 000**
318
410
219
947|**Total**
**2022**
**£ 000**
306
257
131|
|---|---|---|---|---|
|||||694|
## **3 Income from other trading activities**
|Events income;
Other events income|**Unrestricted**
**funds**
**General**
**£ 000**
191
191|**Total**
**funds**
**£ 000**
191
191|**Total**
**2022**
**£ 000**
145|
|---|---|---|---|
||||145|
Page 20
## **Forest Holme Hospice Charity**
## Notes to the Financial Statements
## Year Ended 31 March 2023 (continued)
## **4 Investment income**
|Income from dividends;
Dividends receivable from other listed
investments
**5**
**Expenditure on raising funds**
**a) Costs of generating donations and legacies**
**Note**
Other direct costs of generating voluntary
income
**b) Costs of trading activities**
Events and conferences
**6**
**Expenditure on charitable activities**
Nursing
Counsellors
Contribution to UHD for Hospice running costs
Patient welfare / amenities
Staff welfare / amenities
Miscellaneous|**Unrestricted**
**funds**
**General**
**£ 000**
31
**Unrestricted**
**funds**
**General**
**£ 000**
70
**Note**|**Total**
**2023**
**£ 000**
31
**Total**
**2023**
**£ 000**
70
**Total**
**2023**
**£ 000**
-
-
**Total**
**2023**
**£ 000**
277
151
129
185
41
23
806|**Total**
**2022**
**£ 000**
20|
|---|---|---|---|
||||**Total**
**2022**
**£ 000**
181|
||||**Total**
**2022**
**£ 000**
9|
||||9|
||||**Total**
**2022**
**£ 000**
276
105
109
116
36
25|
||||667|
Page 21
## **Forest Holme Hospice Charity**
## Notes to the Financial Statements
## Year Ended 31 March 2023 (continued)
## **7 Net incoming/outgoing resources**
Net incoming resources for the year include:
|Audit fees
Independent examination|**2023**
**£ 000**
12
-|**2022**
**£ 000**
-
4|
|---|---|---|
## **8 Trustees remuneration and expenses**
No trustees, nor any persons connected with them, have received any remuneration from the charity during the year.
No trustees have received any reimbursed expenses or any other benefits from the charity during the year.
## **9 Staff costs**
The aggregate payroll costs were as follows:
|**Staff costs during the year were:**
Wages and salaries
Social security costs
Pension costs|**2023**
**£ 000**
29
2
1
32|**2022**
**£ 000**
-
-
-|
|---|---|---|
|||-|
The monthly average number of persons (including senior management / leadership team) employed by the charity during the year expressed as full time equivalents was as follows:
## Charity Administration
|**2023**|**2022**|
|---|---|
|**No**|**No**|
|3|-|
In the prior year, no staff were employed directly by the charity, all staff were employed by University Hospital Dorset which continues to be the case for most of the hospice staff, average number 19 - £602k (2022:19 - £601k). The Forest Holme Hospice payroll scheme was effective for 22/23 from October 2022 and the above staff number are for the 6 months from this date.
No employee received emoluments of more than £60,000 during the year
## **10 Taxation**
The charity is a registered charity and is therefore exempt from taxation.
Page 22
## **Forest Holme Hospice Charity**
## Notes to the Financial Statements
## Year Ended 31 March 2023 (continued)
## **11 Fixed asset investments**
|**11 Fixed asset investments**|||||
|---|---|---|---|---|
|Other investments
**Other investments**
**Cost or Valuation**
At 1 April 2022
Revaluation
At 31 March 2023
**Net book value**
At 31 March 2023
At 31 March 2022
**12 Debtors**
Prepayments
Accrued income
Gift aid receivable
**13 Creditors: amounts falling due within one year**
Trade creditors
Other creditors||**2023**
**£ 000**
833
**Listed**
**investments**
**£ 000**
866
(33)
833
833
866
**2023**
**£ 000**
3
221
14
238
**2023**
**£ 000**
-
36
36||**2022**
**£ 000**
866|
|||||**Total**
**£ 000**
866
(33)
833
833
866
**2022**
**£ 000**
3
190
6|
|||833|||
|||833|||
|||866|||
|||**2023**
**£ 000**
3
221
14
238
**2023**
**£ 000**
-
36
36|||
|||||199|
|||||**2022**
**£ 000**
4
31|
|||||35|
Page 23
## **Forest Holme Hospice Charity**
## Notes to the Financial Statements
## Year Ended 31 March 2023 (continued)
## **14 Funds**
|**14 Funds**|||||||
|---|---|---|---|---|---|---|
|**Unrestricted funds**
**_General_**
General unrestricted fund
**_Designated_**
Designated funds
**Total unrestricted funds**
**Restricted funds**
Restricted funds
**Total funds**|**Balance at 1**
**April 2022**
**£ 000**
1,471
592
2,063
50
2,113|**Incoming**
**resources**
**£ 000**
1,077
-
1,077
92
1,169|**Resources**
**expended**
**£ 000**
(796)
-
(796)
(80)
(876)|**Transfers**
**£ 000**
(316)
316
-
-
-|**Other**
**recognised**
**gains/(losses)**
**£ 000**
(33)
-
(33)
-
(33)|**Balance at 31**
**March 2023**
**£ 000**
1,403
908|
|||||||2,311
62|
|||||||2,373|
Page 24
## **Forest Holme Hospice Charity**
## Notes to the Financial Statements
## Year Ended 31 March 2023 (continued)
|**Unrestricted funds**
**_General_**
General unrestricted fund
**_Designated_**
Designated funds
**Total unrestricted funds**
**Restricted**
Restricted funds
**Total funds**|**Balance at 1**
**April 2021**
**£ 000**
1,456
600
2,056
7
2,063|**Incoming**
**resources**
**£ 000**
760
-
760
99
859|**Resources**
**expended**
**£ 000**
(793)
(8)
(801)
(56)
(857)|**Other**
**recognised**
**gains/(losses)**
**£ 000**
48
-
48
-
48|**Balance at 31**
**March 2022**
**£ 000**
1,471
592|
|---|---|---|---|---|---|
||||||2,063
50|
||||||2,113|
Page 25
## **Forest Holme Hospice Charity**
## Notes to the Financial Statements
## Year Ended 31 March 2023 (continued)
The specific purposes for which the funds are to be applied are as follows:
Restricted funds are allocated to patient welfare and amenities.
## **15 Analysis of net assets between funds**
|Fixed asset investments
Current assets
Current liabilities
Total net assets
Fixed asset investments
Current assets
Current liabilities
Total net assets|**Unrestricted funds**
**General**
**£ 000**
**Designated**
**£ 000**
833
-
606
908
(36)
-
1,403
908
**Unrestricted funds**
**General**
**£ 000**
**Designated**
**£ 000**
866
-
640
592
(35)
-
1,471
592|**Restricted**
**funds**
**£ 000**
-
62
-
62
**Restricted**
**funds**
**£ 000**
-
50
-
50|**Total funds**
**at 31 March**
**2023**
**£ 000**
833
1,576
(36)|
|---|---|---|---|
||||2,373|
||||**Total funds**
**at 31 March**
**2022**
**£ 000**
866
1,282
(35)|
||||2,113|
## **16 Related party transactions**
During the year the charity made the following related party transactions:
University Hospitals Dorset NHS Foundation Trust (UHD) operates Forest Holme Hospice. UHD supports the Hospice financially and is committed to pay for certain agreed staff costs and amenities.
The Charity agreed to make a contribution of £604k (2022: £667k) towards the general running costs of Forest Holme Hospice during 2022/23.
The following Trustee of the Charity, during the accounting year, was employed by (UHD): Dr Beverley Lee, Consultant in Palliative Medicine.
Stuart Bradford, who resigned as a Trustee in 2021/22, was a Partner at Coles Miller Solicitors LLP, the Charity's solicitors.
Charlotte Lilley, a Trustee, is an Associate Solicitor at Coles Miller Solicitors LLP, the Charity's solicitors.
Page 26