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2023-03-31-accounts

Demelza Hospice Care for Children Annual report and financial statements for the period ended 31 March 2023

Registered Charity Number 1039651 Company Number 02948500

Contents

Contents
Introduction from our CEO 3
Jaxson-James’s Story 4
Why we are here 5
Our achievements and performance 7
Strategic report 8
Trustees report 8
Charitable Objects 8
Strategy April 2022-March 2027 10
Fundraising 12
Compliance with fundraising regulations 12
Section 172 (1) statement 12
Diversity and Inclusion 12
Financial review 16
Part 2
Review of quality
performance
Strategic Risk
16
Energy & carbon data
20
Statement of Responsibilities
23
Independent auditors report
24
Financial Statements
27
in 2022/23
Consolidated Statement of fnancial activities
Balance sheets		 27
28
Consolidated cash fow statement 29
Notes to fnancial statements 30
Structure, governance and management 50
Corporate Information 52

2 Demelza annual report and financial statements

Introduction from our CEO and Chairs

As we come to the end of another financial year, I have been taking some time to reflect on the successes and challenges of the last 12 months. As anyone who works for a charity will know, the sector has changed significantly over the last three years, meaning we must be increasingly agile in our approach to service delivery as well as our income generation, and collaboration is the way forward.

I am pleased to report that a year into my CEO role (my 24th year at Demelza), which coincides with year one of our five-year strategy, we are making fantastic progress.

We have increased the number of children referred, extended our reach into areas that will benefit from our support and are incorporating the child and family voice into our decision making. We have rebranded, changing and updating not only our look and feel but also our tone of voice, to ensure the expertise and specialisms of the teams are more evident, as is our impact.

It has not been without challenges; the national and international nursing shortage continues to impact our capacity to provide the specialist clinical support that children with serious or life-limiting conditions, and their families, need. The misconceptions around what children’s hospices are and why we are here, are still hindering professionals referring into our service and families actively accessing our support.

However, we have plans in place to overcome or at least mitigate these challenges and I am confident that in a short 12 months, when I am reflecting on this current year, I will be able to update you on progress.

I do have some sad news to share, David Highton, our Chair of Trustees, is stepping down. I am deeply grateful

to David, who has served as Demelza’s Chair since 2018 and has been an enormous support for our strategy and has helped with our ambitions with robust business considerations. I am pleased to say that David will continue to serve as a Trustee for the remainder of his tenure until 2024.

After an extensive interview process, I was thrilled that we appointed a new Chair in June; Sean Reynolds CB CBE DFC joined the team and has quickly got to know the charity and the Board of trustees.

This just leaves me to thank everyone who has been with us over the last year; our trustees, donors, supporters, children and families who access our services and our Demelza colleagues, all enabling us to provide extraordinary care to extraordinary children with care that doesn’t back down. We wouldn’t be here without you all and I hope you will join us for the next step in our exciting journey.

Lavinia Jarrett Chief Executive Officer

David Highton Chair to June 2023

Air Marshal Sean Reynolds CB CBE DFC Chair from June 2023

Demelza annual report and financial statements 3

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Jaxson-
James’
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Jaxson-James’ story

I was 16 years old when my brother, Shane, was referred to Demelza due to a severe form of epilepsy. When he stayed at Demelza, we knew he was in the safest possible hands, both clinically and emotionally and my mum could temporarily switch off from being a 24-hour carer.

Although Shane eventually left Demelza’s services, he tragically died in 2021 after contracting COVID-19, age 24. Our loss is still so fresh, and I never thought that just a year after his death, I would be back at Demelza with his nephew – my son – Jaxson-James.

Jaxson loves Demelza’s Little Dots playgroup which is run by a healthcare assistant who also cared for his uncle Shane. It’s comforting catching up with her and sharing our memories of him. The nursing and care team is amazing with Jaxson; they bring out his smiles and giggles, and their clinical expertise gives me and his dad Jim the confidence to hand over his complex care to them. Jaxson loves the sensory room – with the heated waterbed that keeps him cosy despite his poor blood flow – and having use of the hydro pool at Kent is a godsend considering Jaxson may never be well enough to use a public pool.

Jaxson was born with hypoplastic left heart syndrome. There was no time to welcome him to the world; at six days old, he was whisked away for the first of three heart surgeries he would need to survive.

When it became clear we would need ongoing support, our family was once again referred to Demelza. It made a difference to our situation immediately. Demelza’s family support team arranged support for Jaxson’s grandma and helped us apply for a grant which meant we could pay our bills during a lengthy stay in hospital.

Without Demelza, we’d be isolating at home, too scared to take Jaxson out in case he catches a virus that could kill him. Demelza has helped us live a happier life - we don’t know what the future holds for Jaxson but we’re able to enjoy every precious day we have together.

Laura, Shane’s sister and mum to Jaxson-James

4 Demelza annual report and financial statements

We are Demelza

Demelza delivers extraordinary care to extraordinary children who are facing serious or life-limiting conditions, throughout Kent, South East London and East Sussex. Demelza is here to support them and their families at every step – from first diagnosis and for as long as we’re needed.

Demelza is here with care that doesn’t back down. By their side when they feel isolated, helping to create the joy in family life and making precious memories during challenging times.

We support families when and where we’re needed most: at our three core sites, in their homes, in local communities and online.

With two residential hospices in Kent and South East London and a community hub in East Sussex, we go beyond providing outstanding care and emotional support. We help children explore their creativity, have fun and make memories.

Our support is as unique as every child and family and personalised to adapt around their specific circumstances: from creative therapies and short breaks to practical and emotional support for families and siblings, alongside expert clinical and end of life care. Our specialist teams are on hand day and night, all year round.

Demelza annual report and financial statements 5

Our Values

Fiercely committed to quality

The families and children we help, and our supporters, deserve nothing but excellence.

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Fiercely
committed
to quality
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Each one of us has a vital role to play in providing unique care and support, and we always strive to deliver outstanding service. By working together, we can give even more families a chance to enjoy their time making precious memories. We recognise everyone brings a different perspective and we celebrate all forms of diversity.

Passion Performance and Pride

Passion, performance and pride – it’s how we get the best from each other and deliver exceptional care and support.

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Passion,
performance
& pride
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We love what we do. It’s the most rewarding job in the world. We feel privileged to care and support children and their families. We are proud to be part of an inclusive team demelza.

Human is our nature

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Human is
our nature
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We see every person as a unique individual. We give every child and family member a service that suits their individual needs.

We’re all human beings, and through empathy and understanding, we can provide essential care as unique as the person who receives it. All our differences are respected and valued which makes us stronger. We value and respect everyone who is part of our story.

Always honest, always authentic

We are clear, open, and honest because we value everyone and their unique insight.

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Always
honest, always
authentic
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We always look for the best solution. We exist to give outstanding care and support to children and their families.

Innovate, develop & improve

Each member of team demelza is driven to do better.

Innovate, develop & improve

Through evidence, insight and experience, we strive to develop and improve to give children and families outstanding care and support. We always look for ways to transform change into opportunity and growth. We actively seek and welcome representation from all diverse and minority groups.

6 Demelza annual report and financial statements

Our achievements and performance

We’re here to support family life. We want life to be the best it can be for children who have serious or life-limiting conditions, their families, and all those who love them.

Demelza supports over 2,500 children and their family members every year. We work continually to extend our services and ensure we can reach even more children and families who need us, whilst doing more for those we are already supporting.

Over the last year we have:

We supported 663 children with serious or life limiting conditions and their families on our caseload

We provided 1,601 overnight stays over 491 bookings within our hospices

We had 1,312 children and family members attend our events

We provided 240 day care sessions

We had 187 new families referred to access our services

The community care team provided 3,010 sessions

The Hydro pool was used 293 times

We operate 30 shops including Sevenoaks and Walderslade which opened in 2022-23

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Strategic report

Trustees report

The Trustees (who are also directors of the charity for the purposes of the Companies Act) present their annual report together with the audited financial statements of Demelza House Children’s Hospice (the company) for 12 months ended 31 March 2023. The annual report includes both trustees’ report for the purposes of charity law, and the directors’ report and strategic report for the purposes of company law. This report includes pages 1-23 and pages 50–52.

The Trustees confirm that the annual report and financial statements of the company comply with the current statutory requirements, the requirements of company’s governing document and the provisions of the Statement of Recommended Practice (SORP) Accounting and Reporting by Charities, FRS102 and SORP 2015.

Charitable Objects

The memorandum and articles of association sets out the main charitable object:

The charity’s objects (Objects) are to promote the relief of illness and suffering in such ways as the charity shall from time to time think fit, and in particular in the counties of Kent, East Sussex, part of Surrey and South London, and in particular (but without prejudice to the generality whether geographical or otherwise of such object):

(1) by establishing, maintaining and conducting residential nursing and convalescent homes for the reception and care of young persons of either sex and whether or not a member of the charity (without regard to race or creed) who are suffering

from any chronic or terminal illness or from any other physical or mental infirmity, disability or disease and for the reception and care of the members of the family of such persons whether adult or otherwise, and so that any such home may be restricted to patients (and the families of patients) of under a certain age limit or of one sex only or (whether or not so restricted as aforesaid) to patients suffering from any particular type or types of illness, disability, disease or infirmity, and by providing medical or other treatment or attention for any such persons and their families in their own homes;

(2) by conducting or promoting or encouraging research into the care and treatment of persons suffering from any such illness, disability, disease or infirmity as aforesaid and particularly into the care and treatment of persons suffering from terminal illness and the care of the families of such persons and by providing for the dissemination of the results of such research;

(3) by promoting or encouraging or assisting in the teaching or training of doctors, nurses, physiotherapists, administrators, social workers and other persons engaged in any branch of medicine, surgery, nursing or allied services, and in the teaching or training of students in any branch of medicine, surgery, nursing or allied services; (4) by providing or assisting or encouraging the provision of spiritual help and guidance for any persons resident (either as patients or as families of such persons or otherwise) or associated in any way with any such home or homes as aforesaid.

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Demelza annual report and financial statements 9
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Strategy April 2022-March 2027

The five-year strategy started in April 2022. The pandemic has been a time of extraordinary hardship for many children with serious or life-limiting conditions and their families, but has enabled Demelza to re-think our offer and become agile and responsive in how and where we offer services and choice.

This strategy focuses more than ever on Demelza’s history of actively seeking the views and feedback from those who are the real experts; the children, young people and their families themselves. We continue to strive to involve those who use or might need

Demelza’s services in our decision making and how we develop our services and ensure services are accessible to all those that need support, particularly those from diverse and minority backgrounds.

Strategic Objective 1: Be Effective

To provide services that best meet the needs of expectant mothers, babies, children, young people and their families we will:

Strategic Objective 2: Be Responsive

We know that the prevalence of children living with a serious or life-limiting condition in the UK has almost tripled in less than 20 years, reaching nearly 90,000 and this number is only set to grow. To meet the needs of these families we will:

10 Demelza annual report and financial statements

Strategic Objective 3: Extend our Reach

Children in the UK with a serious or life-limiting condition is highest in the under-ones. An increasing number of young people are surviving to 19 (and beyond), an increase of over three-fold. To ensure we are reaching these children and families we will:

Strategic Objective 4: We are Demelza

With the right people in our various stakeholder groups, our organisation will be well-led, in all respects, ensuring we meet the ambitions and aspirations in supporting babies, children, young people and their families. To do this we will:

Strategic Objective 5: Strengthen and Sustain

We will strive to reduce our carbon footprint, collaborate with others and embrace digital means to provide consistent, safe and equitable services that are sustainable beyond the life of this strategy. To do this we will:

Demelza annual report and financial statements 11

Fundraising

Fundraising in 2022/23 saw our highest income in Demelza’s history, excluding legacies, with £5,584k, which was £64k above target and more than £2million higher than the previous year. Of every £1 donated, 82p was used in the care of children and their families (2022: 82p).

All income streams, apart from Individual Giving, showed growth from the prior year and all apart from Individual Giving (£79k behind) and Trusts (£27k behind) exceeded targets for the year.

Corporate had an exceptional year, with an income over £850k and Philanthropy exceeded expectations with an income over £360k.

The year has not been without its challenges; the cost of living crisis has significantly affected the ability and propensity of people to give and this will continue to affect our Individual Giving income into the next financial year.

Despite the challenges, fundraising at Demelza remains agile and innovative and we are confident that income will continue to grow into 2023/24.

Compliance with fundraising regulations

The charity undertakes fundraising activity via the support of volunteers fundraising in the community, applying to and partnering with companies and grant-giving trusts, direct mailings and appeals, and organising of events. Our fundraising activities are carried out in line with the Fundraising Code of Practice set by the fundraising regulator. Our fundraising promise is available on our website.

Section 172 (1) statement

The trustees and directors of Demelza Hospice Care for Children have acted in accordance with their duties codified in law, which include their duty to act in the way in which they consider, in good faith, would be most likely to promote the success of the charity for the benefit of its beneficiaries, having regard to the stakeholders and matters set out in section 172(1) of the Companies Act 2006.

Section 172 considerations are embedded in decision-making at board level and throughout the group. Issues, factors and stakeholders which the directors have considered when discharging their duty under section 172(1) are detailed on pages 3 to 23 and 50 to 52 and throughout this Annual Report.

Our vision and mission statement are set out on page 3 of this report. Our achievements, performance and future plans are described in the strategic report (pages 8 to 22) as are the risks facing our organisation and the mitigating actions we plan to take. Our environmental performance and information about our engagement with employees are also included in this strategic report. The section on structure, governance and management (pages 50 to 52) contains information about the governance of the organisation.

Diversity and Inclusion

Demelza is starting our journey with the Centre for Diversity to work towards ‘Investors in Diversity’ accreditation and create an inclusive workplace culture.

This will be based on the principles of FREDIE:

Charity supporters registered on the telephone preference service would only be called with an appeal if they have agreed to receive such calls. Callers are thoroughly trained and updated on the charity’s work and calls are regularly monitored.

Demelza received 1 complaint (2022: 13) about fundraising activity in the reporting period. This increase is mainly due to delays in thanking, which has been rectified with extra capacity being introduced in the Supporter Services team and a short-term issue with World Pay, which was resolved as soon as we knew there was a problem.

12 Demelza annual report and financial statements

This is to ensure that:

The steps we’re taking:

To achieve this, we are working to develop our knowledge, skills and awareness of diversity and difference. This includes considering how our care and support can be improved for people from all cultures, those with faiths, beliefs and religions and those without. We proactively seek to identify and remove prejudice and discriminatory practices relating to race, ethnicity, culture, sex, sexuality, gender and transgender, disability, age, marriage or partnership status and social class.

We are seeking to build a network of stakeholders who can help us engage with people we are less successful in reaching and we publish plans within our strategy against which we can be held to account.

We have identified that we need to improve in racial equality and have committed to addressing this problem. Whilst we are proud that the profiles of our service-users match the ethnic profiles of the communities in which we work, this is not the case for our workforce or leadership roles. We are formulating a plan, with support, to address this serious issue, for the benefit of the people and communities we serve and to improve our organisation. We welcome the advice and guidance of anyone who can help us achieve this aim.

S172(1) (b) ‘The interests of the company’s employees’

Employee Relations

attracting, retaining, motivating and developing them, wherever they are located in the world.

The annual staff survey is one of the Board’s principal tools to measure employee engagement, motivation and commitment to Demelza. It enables the Board to understand how we are learning from survey findings to strengthen Demelza’s culture and values, and informs decision-making, from pay and benefits to health, safety and wellbeing.

Disabled Employees

We are committed to equality, diversity and inclusion in the recruitment, training, promotion and career development of people living with a disability. Demelza aims to ensure that people with disabilities are given equal opportunity to obtain employment. In doing so, we will fully consider making reasonable adjustments to working practices, equipment and premises to ensure that a person living with a disability is not put at a substantial disadvantage due to their disability. Should staff become disabled in the course of their employment, every effort will be made through reasonable adjustment, retraining or redeployment to enable them to remain in employment. If a staff member or a candidate feels that they have been unfairly discriminated against, they may raise a complaint under Demelza’s Complaints Policy.

S172(1) (c) ‘The need to foster the company’s business relationships with suppliers, customers and others’ Demelza’s key business relationships are with: The NHS and other healthcare partners; our suppliers; and our donors and supporters. This is not an exhaustive list. Other key stakeholders include HMRC and the Charity Commission. In order to deliver our mission and strategy, we need to work with others. We are committed to prompt payment of invoices within agreed payment terms. The importance we attach to building relationships with our committed, generous donors and supporters is affirmed on pages 12 and 16.

The Board recognises that Demelza employees are the most important asset and are fundamental to the delivery of our strategic ambitions. Our success depends on

Demelza annual report and financial statements 13

S172(1) (d) ‘The impact of the company’s operations on the community and the environment’

In the published Strategy for 2022 to 2027, we have committed to achieving net carbon zero by 2030. The first step is to measure our carbon footprint in 2022-23. We will then devise a plan to reduce emissions over the next four years, at which point we will begin to offset by purchasing carbon credits. An analysis of our ccarbon emissions in 2022-23 is found on pages 20 to 22.

S172(1) (e) ‘The desirability of the company maintaining a reputation for high standards of business conduct’ It is crucial that Demelza maintains its reputation for high standards of conduct. We remain committed to financial and risk management, compliance, safeguarding and good governance. We are committed to a focus on the charity’s impact.

S172(1) (f) ‘The need to act fairly as between members of the company’

It’s not relevant to Demelza’s organisational structure, as the charity is run in the interests of its charitable objects and its beneficiaries rather than in the interests of its members.

14 Demelza annual report and financial statements

Demelza annual report and financial statements 15

Financial review

Income

In 2022-23 income completed the recovery from COVID-19 and surpassed pre-pandemic levels, with a total operational income of £14.48m (2022: £12.00m). All our main income streams grew and we would like to thank our donors, shoppers and lottery players for their generosity and loyalty.

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4%
13%
28% Retail
Fundraising
13% Statutory
Lottery
Legacies
Other
14%
29%
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Donations including gifts in kind were £3.11m (2022: £2.66m) reflecting significant increases in community and corporate income while major donor gifts and individual donations reduced.

Legacy income was £1.82m (2022: £1.71m).

Retail income was £4.03m (2022: £3.06m). New shops in Sevenoaks and Walderslade opened during the year. This was the second successive year in which retail income has been higher than ever before. The cost of living squeeze seems to have attracted more shoppers into our 29 shops.

Fundraising events continued their recovery to income of £735k (2022: £338k). This is the most that Demelza has raised through events.

Statutory funding from NHS England, CCGs and Local Authorities was £1.99m (2022: 1.77m). There was a substantial increase in the NHS England Annual Childrens Hospice Grant to £1.40m (2022: £894k) while funding from ICSs, CCGs and Local Authorities fell to £593k (2022: 877k).

Grants from charitable trusts and foundations totalled £397k (2022: £309k) reflecting a 28% increase.

Lottery income was £1.82m (2022: £1.71m), an increase of 6%. We began to attend venues to engage with the public face-to-face again. We explained to them about the work of Demelza and gave an opportunity to sign up and play the weekly draw and superdraw.

Government Covid support reduced to £8k (2022: £347k) as the disruption due to Covid-19 was confined to the very start of the year.

16 Demelza annual report and financial statements

Expenditure

Expenditure was £16.15m in 2022-23 (2022: £12.64m). This increase in expenditure represents additional staff who delivered a greater volume of services and built capacity in almost every area of our service delivery, to enable us to carry out the work laid out in our five-year strategy. To support our ambitious plans, investment was also made within fundraising, retail and lottery to ensure the increased costs are sustainable with longevity.

The cost of providing care was £9.36m (2022: 7.37m), an increase of 15%. We improved terms and conditions for all staff, and nurses in particular. The number of vacancies in our nursing and care teams reduced, but we didn’t quite achieve full establishment. We recruited family support workers, therapists and counsellors to provide new services for children, their parents and siblings.

The cost of generating funds was £6.79m (2022: £5.27m), an increase of 29%.

Fundraising costs were £2,109k (2022: £1,566k) The increase was due to in-person events taking place after restrictions were lifted.

Retail expenditure increased to £3,806k (2022: £2,905k) reflecting the opening of two shops in the year and the first full year of the Hempstead Valley shop. The infrastructure of the retail team was strengthened to enable the opening of a further seven shops by 2027.

Lottery costs increased marginally to £666k (2022: £650k).

The cost of maintaining and letting the properties owned by the subsidiary, ACG Lettings Ltd, increased to £125k (2022: £83k) due to increased maintenance and repair costs.

Reserves

Our reserves policy states that to ensure the sustainability of our service for those who need it most, we keep 7.5-10 months of running costs in free reserves. The policy was increased to 10-12 months from July 2020 to December 2022 to allow for uncertainty of income in relation to COVID-19. The trustees concluded that the increased COVID-19-related risks had diminished during 2022 and it was no longer

appropriate to maintain an elevated reserves policy.

At 31 March 2023 we held 7.57 months or £10.18m of free reserves (2022: 11.02 months or £11.61m). Expenditure has increased by 28% so when measured as a proportion of running costs the months of reserves held also fell by 28%.

The reduction in free reserves between March 2022 and March 2023 was £1.43m. The main factors in this reduction of free reserves were:

  1. The deficit in unrestricted funds of £2.44m. This included an operational unrestricted deficit of £1.90m. This was a planned deficit for the first year in a five-year strategy. Expenditure has increased sharply in year one but will level off in future years. Income is planned to grow steadily throughout the strategy so break-even will be achieved in 2027.

  2. The loss on investments of £827k and the gain on investment properties of £287k are included in the unrestricted total deficit of £2.45m.

  3. Capital assets of £244k were purchased in 22-23 while depreciation and amortisation was £426k. The revaluation of ACG properties resulted in a gain of £287k. The net result was a reduction in general funds of £105k.

  4. £831k of unrestricted expenditure was made in 22-23 from the Care and Resources Strategy Fund. This was expenditure on new elements of Care and Resources planned for the first year of the strategy.

  5. £444k of unrestricted expenditure was made in 22-23 from the Digital Transformation Fund. This focused on our use of data, digital platforms and making Demelza more accessible to our children and families, shoppers and supporters.

  6. A transfer was made to the new Capital Asset Fund of £300k. This is for the capital items which will be purchased in the next financial year. The balance of £150k on Capital COVID-19 Recovery Fund was recognised as being used to purchase fixtures and fittings for buildings.

Demelza annual report and financial statements 17

Principal risks, uncertainties and managing risk

The senior leadership team and Trustees regularly review organisational risks and how to negate or mitigate them as much as possible. The main strategic-level risks during this period have been:

Strategic Risk
 Actioned Mitigations
• Terms and Conditions of employment reviewed to enhance
Number of competitiveness.
appropriately • Workforce Strategy offers career opportunities to increase
skilled employees number of employed nurses.
and volunteers • Retention strategy has developed voice of the employee
including wellbeing plan and enhanced internal communications.
• Good engagement, support and training of volunteers.
• Ensuring volunteers’ skills are optimised.
• Review of safe recruitment procedures, including DBS
requirements for roles.
Infation and cost of • Detailed fnancial scenario planning.
living crisis leading • Timely review of management accounts, with Finance Business
to increased costs Partner support.
and a reduction in • Strengthened portfolio of income streams including Bubble Rush,
income Charity Extra campaign, new shops and developing Lottery sales
opportunities.
• Cost of living award of 5% April 23 to all staff.
• Increase children’s hospice grant by 56% increasing to £1,398k in
22-23.
• Wellbeing Strategy developed with champions recruited and
trained in mental health frst aid.
Information • Information Governance policy and procedure reviewed.
Governance, • Independent Virtual Data Protection Offcer appointed for routine
including Cyber expert advice.
Security • Data Retention policy and schedule reviewed.
• Caldicott Guardian training and deputy role appointed.
• Cyber Security an inherent strand of all Digital Transformation
Projects.
• Cyber Security ethical phishing simulation completed and
remedial training and information released.
Fire Safety at Kent • Full audit of Kent Hospice site completed, in collaboration with
Hospice Kent Fire and Rescue, with action plan identifed.
• Emergency evacuation plan put in place, with new overnight
sleep in with additional employees in place.

18 Demelza annual report and financial statements

Strategic Risk
 Further Planned Mitigations
Number of • Salaries to be aligned to the sector benchmark, if possible.
appropriately skilled • New recruitment application introduced to encourage
staff and volunteers applications and enable data analytics.
• New DBS management solution to be implemented.
• New nurse campaign to recruit nurses to Demelza, fully utilising
new branding.
Infation and cost • Planned increase in applications for statutory funding for
of living crisis services.
including income • Plans to campaign alongside local MPs to secure children’s
downturn hospice grant and raise awareness of Demelza’s services.
Information • Renewed Cyber Essentials Accreditation planned.
Governance, • Review of data retention and reduction of records stored.
including
Cyber Security
Fire Safety at Kent • Planned Business Continuity simulation to test policy and
Hospice procedure.
• Future proofng of building for changes of use
• Ongoing programme of works to assure future compliance

Investments

Brewin Dolphin acted as Demelza’s investment managers throughout the year. Our primary aim from investment is to achieve sustainable capital growth within a balanced risk environment. Ultimately these funds will provide a safety net to ensure the continued provision of the Charity’s core services. The primary objective is to generate a total return of 2% above the rate of inflation as measured by CPI on a 5-year rolling basis.

As set out in the financial notes on page 41; we held £12.28m at the start of the year and £11.74m at the end of the year. Dividends of £324k (2022: £270k) were received during

the year and there was an unrealised loss of £827k (2022: gain of £278k). Investment markets were volatile especially at the start of the year in the aftermath of the start of the war in Ukraine. Investment values recovered some of the lost ground in the second half of the year. The fees charged by our investment manager were £41k (2022: £45k).

Political and charity donations

Demelza is a registered charity and the whole of its payments are applied to charitable purposes as detailed in the accounts. No specific contributions to other charities were made in the period nor were any political contributions made.

Demelza annual report and financial statements 19

Greenhouse Gas emissions and energy consumption

Intensity ratio

It was decided to use total £m turnover as our metric. The resulting intensity ratio of tCO2e per total £m turnover will best reflect changes in operation and energy consumption over time.

20 Demelza annual report and financial statements

Efficiency narrative

We have a policy of recording and reviewing all energy use and investigating unexplained anomalies.

Quantification and Reporting Methodology

The methodology we have used is The GHG Protocol Corporate Accounting and Reporting Standard.

A specific project to replace corridor lighting at the Kent hospice with LEDs, supported by PIR motion sensors, has been completed. A programme to replace lighting at shops will also soon get underway, so all have the same fittings and LED bulbs.

The electric charging point is in regular use. The Energy Savings Opportunity Scheme is being completed for submission in December 2023 and completion of a Carbon Footprint and Carbon Reduction plan is underway.

We have followed the 2013 UK Government Environmental Reporting Guidelines (updated March 2019).

We have used the 2023 UK Government’s Conversion Factors for Company Reporting. The energy efficiency narrative methodology has been created based on energy management best practice.

Demelza annual report and financial statements 21

Organisational boundary

We have used the financial control approach.

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|||| |---|---|---| |Scope|Emissions (tCO2e)|% contribution to SECR| |1|175.95|51.32| |2|134.69|39.29| |3|32.20|9.39| |Total|342.84|100.00| |Scope 3| |10%| |Scope 1| |51%| |Scope 2| |39%|

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Structure, Governance and Management

Details about the structure, governance and management of the charity and its subsidiaries are shown at the end of this report on pages 50 to 52.

22 Demelza annual report and financial statements

Statement of Responsibilities

The Trustees are responsible for preparing the Trustees’ Report and the Financial Statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England & Wales 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 the group and of the incoming resources and application of resources of the charity and the group for that period. In preparing these financial statements, the Trustees are required to:

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, applicable accounting regulations and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and the group 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 charity and financial information included on the charity’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Disclosure of information to auditor

The Trustees who held office at the date of approval of this Trustees’ Report confirm that, so far as they are aware, there is no relevant audit information of which the company’s auditors are unaware; and each Trustee has taken all the steps that they ought to have taken as a Trustee to make themselves aware of any relevant audit information and to establish that the company’s auditors are aware of that information.

This report, incorporating the Strategic Report, was approved by the Trustees, in their capacity as Company Directors, on 5 October 2023 and signed on its behalf by

Air Marshal Sean Reynolds CB CBE DFC, Chair of Trustees

Demelza annual report and financial statements 23

Independent auditors report

Opinion

We have audited the financial statements of Demelza House Children’s Hospice (the ‘parent charitable company’) and its subsidiaries (the ‘group’) for the year ended 31 March 2023 which comprise the consolidated statement of financial activities, group balance sheet, charity balance sheet, consolidated cash flow statement and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the 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 the group or the parent charitable company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Other information

The 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.

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

We have nothing to report in this regard.

Other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

24 Demelza annual report and financial statements

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 and Strategic Report.

We have nothing to report in respect of the following matters where the Companies Act 2006 require us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the Statement of Trustees’ Responsibilities set out on page 23 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 the 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 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 as auditors under the Companies Act 2006 and report in accordance with regulations made under that Act.

Our objectives are to obtain reasonable assurance about whether the group and parent 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 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 specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud are detailed below.

Identifying and assessing risks related to irregularities:

We assessed the susceptibility of the group and parent charitable company’s financial statements to material misstatement and how fraud might occur, including through discussions with management and trustees, discussions within our audit team planning meeting, updating our record of internal controls and ensuring these controls operated as intended. We evaluated possible incentives and opportunities for fraudulent manipulation of the financial statements. We identified laws and regulations that are of significance in the context of the group and parent charitable company by discussions with trustees and updating our understanding of the sectors in which the group and parent charitable company operate.

Laws and regulations of direct significance in the context of the group and parent charitable company include The Companies Act 2006 and guidance issued by the Charity Commission for England and Wales.

Further the group is subject to other laws and regulations where the consequences of noncompliance could have a material effect on amounts or disclosures in the financial statements, through significant fine, litigation or restrictions on the group’s operations. We identified the most

Demelza annual report and financial statements 25

significant laws and regulations to be those issued by the Care Quality Commission covering health care services and those issued by the Gambling Commission covering requirements for running a lottery.

Audit response to risks identified:

We considered the extent of compliance with these laws and regulations as part of our audit procedures on the related financial statement items including a review of financial statement disclosures. We reviewed the parent charitable company’s records of breaches of laws and regulations, minutes of meetings and correspondence with relevant authorities to identify potential material misstatements arising. We discussed the parent charitable company’s policies and procedures for compliance with laws and regulations with members of management responsible for compliance.

During the planning meeting with the audit team, the engagement partner drew attention to the key areas which might involve non-compliance with laws and regulations or fraud. We enquired of management whether they were aware of any instances of non-compliance with laws and regulations or knowledge of any actual, suspected or alleged fraud. We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and identifying any significant transactions that were unusual or outside the normal course of business. We assessed whether judgements made in making accounting estimates gave rise to a possible indication of management bias. At the completion stage of the audit, the engagement partner’s review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud.

fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

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 parent charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the parent 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 parent charitable company and the parent charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

…………………..........................................................……………….. Cara Turtington (Senior Statutory Auditor) for and on behalf of Saffery LLP

Chartered Accountants Statutory Auditors

71 Queen Victoria Street London

EC4V 4BE Date………………………… 19 October 2023

Saffery LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to

26 Demelza annual report and financial statements

Financial Statements

Consolidated Statement of Financial Activities for the year ended 31 March 2023

Demelza annual report and financial statements 27

Demelza Hospice Care for Children Balance Sheet at 31 March 2023

As permitted by Section 408 of the Companies Act 2006 no separate Statement of Financial Activities for the charity alone has been presented. The deficit for the charity only in the period is £2.205m (2022: £361k).

28 Demelza annual report and financial statements

Consolidated Cash Flow Statement for the Year Ended 31 March 2023

Demelza annual report and financial statements 29

Notes to the financial statements For the Period ended 31 March 2023

Note 1. Accounting Policies

Statement of compliance

The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (Charities SORP (FRS102 second edition)) and the Financial Reporting Standard applicable in the United Kingdom and republic of Ireland (FRS 102) and the Charities Act 2011. Demelza House Children’s Hospice meets the definition of a public benefit entity under FRS 102. The functional currency is £ Sterling.

General information

The Charity is a company limited by guarantee, incorporated in England and Wales (company number 2948500) and a charity registered in England and Wales (charity number: 1039651). The Charity’s registered office address is: Demelza House, Rook Lane, Bobbing, Sittingbourne, Kent, ME9 8DZ.

Basis of consolidation

These financial statements consolidate the results, assets and liabilities of the charity’s trading subsidiary Demelza Trading Ltd (company number: 03090528) and ACG Lettings Ltd (company number: 03031999 on a line-by-line basis.

Going concern

The trustees have reviewed Demelza House Children’s Hospice’s financial position, considering the impact of future activities, and concluded that it is appropriate to produce the accounts on a going concern basis for the 12 months from the date the accounts are signed.

A summary of the accounting policies, which have been consistently applied, is set out below.

Significant judgements and estimates

The key sources of uncertainty in our estimations that have a significant effect on the amounts recognised in the financial statements are

described in the accounting policies and are summarised below:

Accounting for income

Income received by way of donations, collecting boxes or from functions, shops or flag days is not recorded in the financial statements until the cash, or document of title to the investment or property is received at headquarters. Legacy income is recognised in the SOFA when receipt is probable, amounts receivable can be measured with sufficient reliability and the charity is entitled to the income.

No account is taken of monies or other assets in the hands of outside or voluntary helpers until such monies are banked or other assets are remitted to headquarters. Contracted fees receivable and grants invoiced to local authorities, as well as investment income and accrued tax recoverable, are accrued. Other grants from central government and local authorities are recorded in the financial statements when they are receivable.

Contracted fee income specifically received in advance of expenditure in the next financial year is deferred in the balance sheet.

The value of investments and property bequeathed or donated to Demelza House Children’s Hospice is taken to be market value on the date when the documents of title are received.

Expenditure

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs relating to that category. Where costs cannot be directly attributable to particular headings, they have been allocated to activities on a basis consistent with the use of resources. Central overhead costs are allocated to operational and fundraising functions on the basis of their use of central support services.

Fundraising costs are those incurred in seeking voluntary contributions and do not include the cost of disseminating information in support of the charitable activities.

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Note 1. Accounting Policies (continued)

Support costs, which include central or regional functions such as general management, budgeting and accounting, payroll administration, human resources, information technology, facilities and estates, are allocated across charitable and fundraising activities under the following categories, financial management, people and organisational development, information systems, facilities and estates.

Where information about the aims, objectives and projects of the Charity is provided in the content of fundraising material in an educational manner in the furtherance of the Charity’s objectives, those costs are apportioned to charitable activities. Irrecoverable value added tax (VAT) is included in the relevant expense categories.

Support and governance costs are apportioned on the basis of usage of a resource in terms of time taken, capacity used and requests made.

Tax

Demelza House Children’s Hospice is considered to pass the tests set out in Paragraph 1 Schedule 6 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 from capital gains received within categories covered by Chapter 3 Part II 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. Profit from the subsidiaries is gift aided to Demelza House Children’s Hospice.

Leases

All leases are operating leases. Costs in respect of these leases are charged to the statement of financial activities over the term of the lease.

Fixed assets

to write off the assets other than freehold land over the following periods.

Freehold buildings

The period of the estimated useful life up to a maximum of 50 years from the date of purchase.

Leasehold land and buildings

The unexpired portion of the lease up to a maximum of 50 years from the date of the most recent revaluation or, if later, the date of the purchase.

Building improvements

Between 3 to 25 years based on nature of usage, or if earlier, the unexpired portion of the lease.

Motor vehicles

Motor vehicles are stated in the Balance Sheet at cost, less depreciation provided to write off the vehicles over a period of 4 years.

Equipment

Equipment is stated in the Balance Sheet at cost less depreciation to write off the equipment over a period of 4 years.

Intangible fixed assets

Intangible fixed assets such as the website, software and intellectual property are amortised over a period of 3 to 10 years.

Fund accounting Restricted funds

These funds are restricted by the donor for specific purposes. Revenue funds restricted by the donor are held in restricted reserves and funds are matched against expenditure as appropriate.

Unrestricted funds

These funds comprise accumulated surpluses and deficits on general funds that are expendable at the discretion of the Trustees in furtherance of the objects of the charity and that have not been designated for other purposes.

Land and buildings

Land and buildings are stated in the balance sheet at the most recent valuation or, in the case of purchases or additions subsequent to the date of such valuation, at cost, less depreciation provided in relation to such valuation or cost, as appropriate,

Designated funds

These are unrestricted funds that have been set aside at the discretion of the Trustees for particular purposes.

Demelza annual report and financial statements 31

Short term employee benefits

Salaries, wages and employment-related payments are recognised in the period in which the service is received from employees. The cost of annual leave entitlement earned but not taken by employees at the end of the period is recognised in the financial statements to the extent that employees are permitted to carry-forward leave into the following period.

Pensions

Demelza House Children’s Hospice operates a defined contribution scheme available to the majority of its permanent employees. The Charity and its subsidiaries also make contributions to the National Health Service Pension Scheme for certain employees which is a defined benefit scheme. However, the scheme is a multi-employer scheme and the charity is unable to identify its share of the underlying assets and liabilities. As a result, this scheme is also accounted for by the charity as a defined contribution scheme.

All the pension schemes are administered by separate trustees and are run independently of the charity.

The costs of providing pensions for employees are therefore all charged in the statement of financial activities for the year in which the contributions are payable.

Charity’s normal sale or usage requirements, are recognised when, and to the extent that, performance occurs, i.e. when delivery of the goods or services is made. Regular Note 1. Accounting Policies (continued) sales are recognised and de-recognised, as applicable, using the trade date.

De-recognition

All debtors are de-recognised when the rights to receive cash flows from the assets have expired or the Charity has transferred substantially all of the risks and rewards of ownership.

Investments

Investments held for the long-term to generate income or capital growth are carried at fair value as fixed assets. Realised and unrealised gains are accounted for within the statement of financial activities.

Investment properties

Investment properties are valued at the year end. Gains or losses are recognised in the accounts of the relevant subsidiary and shown within the statement of financial activities.

Stock

Stocks comprise finished goods and are stated at the lower of cost and net realisable value.

Creditors and provisions

Liabilities

Future liabilities are recognised when Demelza House Children’s Hospice has a legal or constructive financial obligation, that can be reliably estimated and for which there is an expectation that payment will be made.

Financial instruments

Cash at bank and short-term deposits includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account. All cash and short-term deposits are basic instruments and are measured at amortised cost.

Debtors recognition

Creditors and provisions 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 and provisions are normally recognised at their settlement amount after allowing for trade discounts due.

Donated goods

The trustees have concluded and agreed that the valuing of shops donated goods for resale on receipt is impractical due to the high volume of low value items, lack of stock system for recording these items and the administrative cost involved. Instead, the income is recognised in the accounts when these goods are sold.

Debtors which arise from contracts for the sale of non-financial items (such as goods or services), which are entered into in accordance with the

32 Demelza annual report and financial statements

Notes to the financial statements for the year ended 31 March 2023

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Notes to the financial statements for the year ended 31 March 2023

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Notes to the financial statements for the year ended 31 March 2023

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Notes to the financial statements for the year ended 31 March 2023

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Notes to the financial statements for the year ended 31 March 2023

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Notes to the financial statements for the year ended 31 March 2023

38 Demelza annual report and financial statements

Notes to the financial statements for the year ended 31 March 2023

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Notes to the financial statements for the year ended 31 March 2023

40 Demelza annual report and financial statements

Notes to the financial statements for the year ended 31 March 2023

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Notes to the financial statements for the year ended 31 March 2023

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Notes to the financial statements for the year ended 31 March 2023

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Notes to the financial statements for the year ended 31 March 2023

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Notes to the financial statements for the year ended 31 March 2023

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Notes to the financial statements for the year ended 31 March 2023

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Notes to the financial statements for the year ended 31 March 2023

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Notes to the financial statements for the year ended 31 March 2023

48 Demelza annual report and financial statements

Notes to the financial statements for the year ended 31 March 2023

Demelza annual report and financial statements 49

Structure, governance and management

Organisational structure

The charity operates as a company limited by guarantee, under the terms of its memorandum and articles of association. Legal responsibility for the management and stewardship of the hospice is vested in the Board of Trustees.

Day-to-day operational decisions are delegated to a Senior Leadership Team. During the period covered by this report this consisted of a Chief Executive, Director of Nursing and Care, Director of Fundraising & Marketing, Director of Trading and Director of Finance & Business Planning (none of whom are directors within the meaning of the Companies Act).

Key management personnel are those individuals who have authority and responsibility for planning, directing and controlling the activities of the charity, directly or indirectly, including any director (whether executive or otherwise). The Appraisal and Remuneration Committee is responsible for setting the pay for these personnel, comparing to industry benchmarks as appropriate.

The Trustees, directors and management are shown on page 52 of this document.

The trustees held four board meetings during the year. The five sub-committees also met regularly throughout the year, reporting respectively for matters concerned with clinical governance, strategy & transformation, fundraising & marketing, resources, and appraisal & remuneration.

The trading company (Demelza House Trading Limited No. 03090528) is a wholly owned subsidiary incorporated in England and Wales, and has a separate board of directors that reports to the Board of Trustees of the charity. The trading subsidiary runs shops and a weekly lottery to support the objects of the charity.

The charity’s subsidiary (South East Medical Services Limited (SEMS) No. 06042090), which built the Eltham hospice, had no turnover this year and is dormant.

The charity’s subsidiary (ACG Lettings Ltd No 03031999 is a wholly owned subsidiary incorporated in England and Wales, and has a separate Board of Directors which reports to the Board of Trustees of the charity. The trading subsidiary owns, maintains and lets residential property in East Kent.

Trustee induction and training

The Board of Trustees maintains a skills matrix of all Trustees to identify any shortfall in desired competencies. If any shortfall is identified the Trustees actively seek a suitable candidate to fill that role on the board. Candidates are interviewed, and those selected are invited to join the board for one meeting and given a tour of the hospice to assess whether they are deemed suitable by all the Trustees; this also allows candidates to judge whether the role is one they feel they could comfortably fulfil.

New board members are then given an induction pack, including relevant Charity Commission publications, statutory accounts, and explanations of their duties and copies of previous board meeting minutes. They also attend an induction session with selected Trustees and staff.

All members of the Board are encouraged to attend appropriate internal and external training events where these facilitate the undertaking of their role.

Clinical governance

Demelza has a comprehensive Clinical Governance Policy and appropriate procedures in place. Demelza will demonstrate accountability for, and ensure continuous improvement in, the quality of services for expectant mothers, babies, children and families and safeguard high standards of care by creating an environment in which excellence in clinical care will flourish.

The Clinical Governance Committee (which is a sub-committee of the Board):

50 Demelza annual report and financial statements

Key performance indicators

The Senior Leadership Team monitors a variety of key performance indicators (KPIs) to check achievement of strategic and operational objectives, reporting on them to Trustees. These KPIs monitor the amount and type of care provided, management of resources, and income generation.

Statement on public benefit

The Trustees confirm that they have complied with the duty in section 17 of the Charities Act 2011 to have due regard for public benefit guidance published by the Charity Commission in determining the activities undertaken by the charity. In the interest of transparency, the Trustees make the following observations on the two key principles of public benefit.

in surveys and representatives’ forums, to gain information on our impact.

The Trustees review the activities of the charity against its aims on an ongoing basis and are satisfied that all activities continue to be related to its aims.

The charity does not exclude or give priority on any basis other than medical and social need.

Any private benefits are incidental, with Trustees receiving no remuneration, and any personal or business involvement is listed under the related party transaction section.

Firstly, Demelza is clear on the beneficiaries of its work in this report and in its general communications. The beneficiaries are babies, children and young people with serious and lifelimiting conditions and their families, and expectant mothers, within Kent, East Sussex and South East London. A referral process is in place with clear guidelines on criteria, with anyone being able to refer a child subject to appropriate consent, including families themselves. The Trustees have paid due regard to the latest demographic and other research and data on the number of actual and potential beneficiaries, and their needs.

Secondly, our business-planning and monitoring/ reporting are structured around the benefits delivered to the beneficiaries through our work, including monitoring the impact we have had on their lives. This is reflected in the Trustees’ report. The benefits are respite care, therapeutic services, and other related activities, with access to emergency and end of life care when required. This can be at either of the hospices or within the family home via the community care teams. Support services include family support, therapies and pre and post bereavement support for the child and their immediate family.

The monitored benefits include whether assessed needs within individual care plans have been met, and improvements (including increased social functioning, resilience, and emotional wellbeing) monitored through standardised tools. We also regularly consult with our beneficiaries, for example

Demelza annual report and financial statements 51

Corporate Information

Demelza Hospice Care for Children (formerly Demelza House Children’s Hospice) . A company limited by guarantee Company No. 2948500. Charity No. 1039651 Registered office: Rook Lane, Bobbing, Sittingbourne, Kent, ME9 8DZ Website: demelza.org.uk Telephone: 01795 845200

Subsidiary companies:

Demelza Trading Limited (formerly known as Demelza House Trading Ltd) Company No 03090528. A private limited company ACG Lettings Ltd, Company No. 03031999. A private limited company

Trustee board

David Highton (Chairman) to May 2023 Sean Reynolds CB CBE DFC (Chairman) appointed May 2023

Robert Alexander Darren Anstee Pippa Barber Paul Smith Kate Stephens retired June 2022 Susan Lowson retired June 2023 Yvonne Parks Debbie Kemp Pedro Avery Nicola Porter (Tyers) Charlotte Parry-Jones Richard Douglas appointed Oct 2022 Richard Finn appointed Oct 2022 Alex Parry-Jones appointed Oct 2022 George Hunter appointed Oct 2022 Natasha Smith appointed Oct 2022 Paul Hewish appointed Oct 2022 Vinit Shah appointed Oct 2022

Founder president

Derek Phillips

President

Richard Oldfield OBE DL

Vice Presidents

The Most Reverend and Right Honourable Justin Welby, Archbishop of Canterbury Daniel Radcliffe Sally Lindsay Sir Martyn Lewis, CBE Dave Berry Jayne Torvill, OBE Cheryl Baker Robin Cousins, MBE Gary Lineker, OBE Lady Kingsdown, OBE Paul Auston, DL Turrloo Parrett Fiona Sunley Des Crampton James Kelly Rhiannedd Brooke Sarah Kemsley

Company Secretary

James Niblett

Chief Executive Officer Lavinia Jarrett

Director of Finance & Business Planning James Niblett

Acting Director of Clinical Services Katie Stevens

Director of People, Culture & Resources Hayley Clark

Director of Fundraising & Marketing Hayley Richardson

Director of Retai l Ashley Henson

Director of Quality Improvement & Clinical Governance

Liz Bray

Auditors

Saffery LLP 71 Queen Victoria Street, London, EC4V 4BE

Bankers

National Westminster Bank Plc 2nd Floor County Gate, Stacey’s Street, Maidstone, Kent ME14 1ST

Principal Solicitor

Mayo Wynne Baxter Solicitors 3 Bell Lane, Lewes, East Sussex BN7 1JU

Investment Manager

Brewin Dolphin 12 Smithfield Street London EC1A 9LA

@demelzacharity

info@demelza.org.uk

Demelza Kent (Registered Office) Rook Lane, Bobbing, Sittingbourne, Kent, ME9 8DZ T: 01795 845200

Demelza Demelza South East London East Sussex 5 Wensley Close, 150a Bexhill Road, Eltham, London, St Leonards-on-Sea, SE9 5AB East Sussex, TN38 8BL T: 020 8859 9800 T: 01323 446461

5 Wensley Close, Eltham, London, SE9 5AB T: 020 8859 9800

Find out more at:

demelza.org.uk

© Demelza 2023. Updated August 2023.