Registered number: 02979587 Charity number: 1044816 BUTTERWICK LIMITED (A company limited by guarantee) TRUSTEES. REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 BUTTERWICK LIMITED IA company limited by guarantee) CONTENTS Page Referonce and administrative details of the charity, its Trustees and advisers Trustees. report Independent auditors, report on the financial statements Consoltdated statement of financial actlvltles 2-20 21-24 25-26 Consolidated balance sheet 27-28 Charity balance sheet Consolidated statement of cash flov 29-30 31 Notes to the financial statements 32-55 BUTTERWICK LIMITED IA company limited by guarantee) REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 MARCH 2024 Trustees Prof M Bramble B Carr Dr B P Corbett D Crew Y V Evans S R Grant T A Ler)ehan Company registered number 02979587 Charity regtstered number 1044816 Registered office Bulterwick Hospice, Middlefield Road, Stockton On Tees. Cleveland. TS19 8XN Company secretary S R Grant Chief executive officer E Gorringe Independent auditors Waltons Business Advisers Limited. Maritime House, Harbour Walk. The Marina, Hartlepool, TS24 OUX Bankers Barclays Bank plc. 49 High Street. Stockton on Tees, TS18 1AH Solicitors Knights PLC, Lakeside House, Kingfisher Way, Stockton on Tees, TS18 3NB Page 1 BUTTERWICK LIMITED (A Gompany limited by guarantee) TRUSTEES, REPORT FOR THE YEAR ENDED 31 MARCH 2024 The Trustees present their annual report together with the audited financial statements of the charity and group for the year 1 April 2023 to 31 March 2024. The annual report serves the purposes of both a Trustees, report and a directors, report under company law. The Trustees confinn that the annval report and financial statements of the charitable company comply with the current stalulory requirements, the requirements of the charitable companys governing document and Ihe provi5i0ns of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019). Since the group and the chaTity qualify as small under section 383 of the Companies Act 2006, the group strategic report required of medivm and lafge companies under the Companies Act 2006 (Strategic Report and Directors. Report) Regulations 2013 has been omitted. FOUNDER The chaflty was founded by Mrs Mary Butterwick OBE who sadly died, aged 91, on 30th September 2015. Mrs Bultemick's initial vision. personal self-sacrifi'ce and lenacity, coupled with her close interest in the work of the Hospice which continued until her death. ensures her considerable legacy, in the charrty which bears her family name. for the benefit of the community which we freely serve. STRUCTURE, GOVERNANCE AND MANAGEMENT Governing document Butterwick Limited is a charitable company limited by guarantee (incorporated October 19941 and as such is governed by a Memorandum and Articles of Association. It was regislered by the Charity Commission on 7th March 1995, registration number 1044816. Methods of appointment or election of Trustees The Trustees are drawn from a variety of disciplines with the aim of ensuring that the company has strong and informed leadership. During 23-24 there were 7 Trustees all of which stepped down from their term of office in 23-24 and were re-appointed. In order to increase overall Trustee numbers and target specific expertise the organisation is in the process of recruiting additional Trustees. When a vacancy occurs. the Chairman undertakes a skills audil to ascertain what particular expertise and background is desirable and thé post is advertised through the normal recruitment channels to identify suitable candidates who are then interviewed and appointed. once due diligence checks have been carried out. Wve maintain a split of trustees with clinical and medical 8xperience and business experience to ensure all aspects of Ihe busine55 are appropriately scrutinised. Trustees are given a general induction on joining the Board, and regular refresher training to mainlain statutory and mandatory requirements. The Trustees receive formal papers and reports. They are kept abreast of news and developments within the wider charity and hospice world by Ihe receipt of regular briefings and the circulation of relevant Charity Commission and other publications. Trustees are also given the opportunity of attending appropriate local and national seminars and conferences. The Trustees continue to review the company's governance arrangement5, including Ihe term of office of trustees, and to consider models of best practice. The Trustees have agreed to comply wilh the Charity Governance Code. Pa9e 2 BU￿ERwIcK LIMITED (A company limited by guarantee TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 STRUCTURE, GOVERNANCE AND MANAGEMENT (continued Organisational structure and decision-making policles The charity operates using the name Butterwick Hospice incorporating Butterwick Hospice, Stockton on Tees., Butterwick Hospice at Bishop Auckland and Butterwick House Children's Hospice. The charity is organised so that the Trustees meet quarterly to manage its affairs. the Trustees receive quarterly written reports from the Chief Executive and the Senior Leadership Team, which incorF)orate management accounts and reports on the charity's activities and progress in meeting pre-identified objectives. There are sub-committees, chaired by Trustees which meet quarterly., the Business Committee, and the Quality, Safety and Risk Committee. The minutes of both committee meetings are circulated to all Trustees for consideration at their quarterly meetings. The Business Committee has general oversight of non-clinical matters including Finan￿, Business Development, Retail, Human Resources, Voluntary Services, Health and Safety, Risk Management, Estates and Facilities. It is chaired by a Trustee, a Chartered Accountant, and typically a further two trustees are members. It is attended by the Chief Executive, the Director of Finan￿ and Business serVi￿S, Director of Income Generation and People Director, members of the charity's non-clinical Senior Leadership team. A key role of the committee is to scrutinise the charity's budgets and recommend the same for approval by the Board. Secondly, the committee reviews the charity's detailed quarterly management accounts showing actual income and expenditure compared to budget, along with future projections. The Quality, Safety and Risk Committee, which also acts as the Clinical Governan￿ Committee, has general oversight of all matters of a clinical nature including patient related health, safety and risk management, quality, audit and the development, delivery and monitoring of patient seNices. It is chaired by a clinically qualified Trustee, attended typically by four additional Trustees with clinical expertise, the Chief Executive, and the Director of Care. This meeting is also attended by the clinical leads of both adult and children's Servi￿5. Changes during the year Hospice Services The acting Chief Executive, appointed in October 2022, was made substantive in April 2023 followng the resignation of the previous post-holder. Work on preparing to reopen the Adult Inpatient Unit (AIPU) continued at the beginning of the year, including the joint project with North Tees and Hartlepool NHS Foundation Trust (NT&H NHS FT) to develop and implement a model of care provision reflective of the needs of the local community. The AIPU is a nurse led unit, with consultant oversight and support. Clinical Nurse Specialists, Registered Nurses, and Health Care Assistants are seconded from NT&H NHS FT to staff the AIPU. The application to the Care Quality Commission {CQC), in March 2023, to vary one of the conditions in place on the registration was approved at the end of June 2023. This meant that the AIPU could admit 2 patients that were known to the provider or NT&H NHS FT for respite or non-complex end of life care. The first patient was welcomed to the reopened AIPU on 21st August 2023. Page 3 BUTTERWICK LIMITED IA Company limited by guarantee} TRUSTEES, REPORT {CONTINUEDI FOR THE YEAR ENDED 31 MARCH 2024 STRUCTURE, GOVERNANCE AND MANAGEMENT Icontinuedl A CQC inspection of the AIPU look place in May 2024. the ￿sUIt of which is still awaited. This followed a request in December 2023 to lift the remaining restriction on our AIPU setvices, in July 2024 the CQC confirmed Ihat all restrictions had been lifted. From November 2024 the AIPU capacity has increased to a maximum of 8 patients. Retail Continued review of our shop portfolio led to the closure of our shops in DaTlington {June 2023). and Bishop Auckland (January 2024). and the opening of I￿0 new locations, Bishop Auckland Retail Park (February 2024} and Redcar (March 2024). The shop in Bishop Auckland is our first larger slore in an established retail stle, this will act as a flagship shop and allow a greater range of goods to be sold. Although we are still experiencing difficulty in attracting volunteers, we plan to increase retail profitability through utilising information from our recently implemented Electionic Point of Sale system and maximising the use of higher margin online sales Channels. Butterwick Lotteries Limited and North East Hospices Lottery INEHL) The day-to-day management of the Butterwick lottery continues to be provided by Starvale Lotteries, a company with over 25 years, experience of thè management, administration and development of lotteries. In June 2023 a new prize structure was recommended and adopted incorporating a roll-over prize resulting in greater player participation and profitability. Following a joint decision by all four member hospices. North East Hospice Lotteries {NEHLI ceased operations during the year with the last draw taking place on 29 March 2024. Following closure of the company any residual assets will be distribuled equally between the member hospices.. players have been encouraged to join the lottery of their local hospice. Pay pollcy for key management pefsonnel The charity is heavily dependent upon the skills. dedication and commitment of all its staff, inclsjding the senior staff team. who provide day lo day direction, leadership and management to what is a substantial and complex organisation. The Trustees recognise the necessity of setting remuneration levels which enable the retention and. when necessary. the recruilmenl of suitably qualified staff taking into account. where applicable. local comparable posts. remuneration group has been established lo review salaries and benefits and ensure equity of pay and Conditions for ev8ry member of staff. When any posl becomes vacant it is scrutinised to ensure its effectiveness and suitability in the organisalion, salaries are reviewed and benchmarked in advance of any post being advertised. Salaries of senior staff are agreed by the Trustees following a benchmarking exercise. Page 4 BUTTERWICK LIMITED (A company limited by guarantee) TRUSTEES, REPORT (CONTINUED} FOR THE YEAR ENDED 31 MARCH 2024 STRUCTURE. GOVERNANCE AND MANAGEMENT (continued) Rolationships with other charitles and organisations Within its charitable objectives and resources. Ihe charity seeks lo play a leading role within the local healthcare and voluntary sectors in the geographical and specialist afeas in which it operates. Over the last year, Butlefwick Hospice has developed a good relationship with several other charities and organisations. and has contributed to sharing of good pr3CtiGe. The charity in particular works closely and productively with the local NHS Integrated Care Board, the local NHS Foundation TiustS, Wlth neighbouring hospices and other local charities. The charity is also a member of Hospices North East and North Cumbria {HNENCI a collaborative of the ￿e1ve independent hospices in the north east of England. Within the Tees Valley Fegular meeting5 take place be￿een the Chairs and Chief Executives of the Tees Valley Hospices. Bulterwick, Sl Teresa's. Alice House and Teesside. NT&H NHS FT continues to be a key partner. supporting the development of Ihe AIPU and providing clinical staff and support services through a Service Level Agreement. The charity continues lo look for opportunities wheie we can work with local Universities and other education institutions in providing training, education and placement opportunities al both undergraduate and post graduate level lo healthcare professionals. Nationally, the charity works with Hospice UK, which is a national membership charity working on behalf of the hospice Movement. and Together for Short Lives which is a membership charity working on behalf of children's hospices. Risk management The charity routinely reviews ils risk register and has aligned il wilh the best practice guidance produced by the Charity Commission. The charity has policies, procedures, systems and controls in place lo mitigate operational risks. Five key areas of risk have been identified which are subject to rigorous risk assessment and management.. Governance including systems anrj Processes Operational covering clinical and non-clinical Financial.. including income generation. budgetary conlrol, cashflow and insurance Regulation and Compliance relaling to CQC, Health and Safety and legal requirements External including national pay bodies and IT operatin9 Systems The Business Conlinuily Plan has been reviewed and updated. There are on call rotas in place that ensure that clinical and non-clinical staff are supported out of normal office hour5. A risk awareness culture is embedded within the day to day working methods and thinking of the charity'5 Staff and volunteers and this is reflected in the fole of the Quality and Compliance Manager who oversees all elements of risk management in collabofation with the Quality and Governance lead Page 5 BUTTERWICK LIMITED (A company limited by guarantee) TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 OBJECTIVES AND ACTIVITIES Policies and objectives The aims and objectives of the charity as set out in Ihe Memorandum of Association {as amended in January 1995) are-. Provision of palliative care and seNices for patients suffering from life threatening and limiting illness. The operation of facilities to provide palliative services for residential, day care and communily. The advancement of education and training for all those concerned with the provision of palliative care, and for the general public. The Trustees have considered the Charity Commission's guidance on public benefit when reviewing the ompanWs aims and objectives and in planning future activities. In meeting its charitable objeclives.. Buttewick Hospice (BHI endeavours to freely provide an excellence in evidence-based specialist and holistic palliative care for all patients regardless of age or diagn051S.' to be a centre of expertise and a specialist Tesource within the community as a whole. However. BH retognises that we need lo approach and progress service improvement5 Wlth a sense of urgency. The care is provided by a skillecl multidisciplinary team and is supported by a wider organisation of administrative. finance and business development staff and a dedicated team of volunteers. In doing this the company operates in three distinct areas= Buttetwick Hospice, Stockton on Tees Butterwick Hospice in Bishop Auckland BullerwiGk House Children's Hospice. Stockton on Tees In all areas of operation, the charity provide5 a comprehensive range of services lo patients and th8ir families including specialist medical and nuising care, ¢omplementary and other therapies, bereavement and Spiritual support, and counselling. The charity seeks lo optimise th8 use of its facilities and make best use of the resources which it expends. Delailed records of patient related activily are maintained and the Trustees receive regular report5 in this respect. The charity continues to work closely with other healthcare providers (both voluntary organisalions and the National Health SeNicel to ensure that its current services and developments align with natiorTal and locally identified priorities. • Activities undertaken to achlevo objectives Butterwick Hospice, Stockton on Tees This is an eight bedded inpatient unit (inpatient residential unil temporarily closed 1st February 2022 to 20th August 2023) and day care facilities. The reopening of the inpatient unil marks a major step forward for the organisation, day services continue to develop offering physiotherapy, complementary therapies and group work. Page 6 BUTTERWICK LIMITED {A company limited by guarantee) TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 OBJECTIVES AND ACTIVITIES Icontinuedl Butterwick Hospice at Bishop Auckland The Hospice in Bishop Auckland setves a mainly dispersed rural community, in doing so the charity has developed. in partnership with statutory and other voluntary bodies, services which meet these distinct needs. The Hospice in Bishop Auckland serves the communities of Sedgefield, Wear Valley, Weardale and Teesdale. and as al the Stockton Hospice. provides an appointmenl-based Day Hospice setvice in Bishop Auckland. During the year the day care facilities gradually returned to pre-COVID patterns of working and reintroduced services suspended during the pandemic. Recognising the distinct healthcare needs of the area. the charity has a150 facililaled the delivery of specialist neurological services focused on patients. in particular those suffering from Multiple Sclerosis. and their carers. The charity also operates a Home Care Service which supports patients. on a 24-hour basis. and their carers in their own homes. The charity is woiking closely with the Integrated Care Board and other voluntary sector organisations to further address the palliative care needs in the area. Butterwick House Children's Hospice Butlerwick House cares for children from birth. teenagers and young adults to a maximum age of twenty-five. Based in Stockton-on-Tees. patients accessing Bulterwick House are drawn from a wide geographical area from North Yorkshire in the South. Teesside, County Durham and Weaiside in the North. Butterwick House is a six bedded unit. four beds for children and Iwo beds specifically designed for young adulls aged 18 to 25 years. which primarily offers planned specialist respite care. staff and volunteers To enable The Charity to achieve ils charitable objective5. including the generation of sufficient financial resoLfrces to fund its activities. the charity and its Iiading subsidiaiies, as al 31 st March 24. employed 100 staff. The charity additionally had the generous support of some 120 volunteers who assist in every area of the charity's activities. The charity reco9nises and acknowledges that it is dependent upon staff and volunteers, who have the necessary training and expertise, if it is to meet the needs of the patients whi¢h it serves and their families and carers. To this end the charity invests both in initial induction Iraininy and ongoing continuing development for all staff and volunteer5. The charity is supported by volunteers in every area of its activities including clinical. support services and income generation. Their contribution to the work of the charity is considerable in financial terms. However, their greatest value is that they represent the community that supports Bulterwick Hospice Care and for their dedication we offer our sincere thanks. Volunteer numbers have still not returned to the level enjoyed prior to the pandemic. In many areas of the charity'5 work, the demands can be both emotionally and physically draining. Staff and volunteers are dedicated and habitually go the exlra mile as is reflected in the many letters of appreciation which we receive. In supporting and equipping Staff and volunteers to meet these demands, the charity Provides a range of mechanisms ranging from informal peer support lo Clinical Supervision. Page 7 BUTTERWICK LIMITED (A company limited by guarantee) TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 OBJECTIVES AND ACTIVITIES (continued) All members of staff have an annual appraisal and regular one to one meetings which allows the opportunity to discuss work related issues. the needs of the charity and ongoing pefsonal development. The charity is proud of the skills. dedication and loyalty of its staff and volLtnteers and gratefLsI for their contribution to the charity meeting ils charitable and operational objectives. Main activities undertaken to further the charity's purposes for the public benefit The Trustees believe the charity provides a public benefit by offering palliative care to adults and children who are resident in the area5 of Teesside. County Durham Wearside and North Yorkshire, and who are suffering from a life limiting illness. People access our services by means of referral by their GP. hospital consultant or clinical nurse specialist. Admission to our services is determined only by clinical and psychological need without reference to gender, race or faith. The Hospice's services are free of charge to patients and their families. ACHIEVEMENTS AND PERFORMANCE Quality The charity's services are registered with, and regulated by. the Care Quality Commission which carries out periodic unannounced Inspections of the three rnain sites on which care is delivered. These Inspections are in-depih and rigorous. Following inspection, the Care Quality Commission publishes a report which is publicly available and to which there are links on the Hospices, websrte. The five key domains that hospices are measured against are.. Is the service safe Is the service effective Is the service caring Is the service responsive Is the service well led The overall rating of Butlerick House is currently Good. The overall rating of Butterwck Hospice at stockton and Bishop Auckland remains Inadequate pending the outcome of a full inspection by CQC undertaken in May 2024. The day services at Butterwi¢k Hospice Stockton and Bishop Auckland were de-registered with CQC in August 2024. A new re9lStration for Home Care Services in Bishop Auckland was also granted by CQC in August 2024. Page 8 BUTTERWICK LIMITED {A company limited by guarantee) TRUSTEES, REPORT {CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 ACHIEVEMENTS AND PERFORMANCE (¢ontinued) Summary of Patient Activity During 2023-2024 ButterwiGk Hospice Care provided 5 key services.. Adult Inpatient Unil (Stockton) (reopened in August 2023). Children's Inpalienl Unil (Butte￿Ick House, Stockton) Day Service (Stockton and Bishop Auckland) Palliative Home Care Team (Bishop Auckland) Family Support (Stockton and Bishop Auckland) Adult In- patient unit The Adult Inpatient Unit is an 8-bed unit, 6 of which have ensuite facilities, and 2 rooms have a shared bathroom close by. Butlerwick Hospice at Slocklon aims to provide specialist pallialive and end of life care"primarily for adult patients living in the Stockton Borough Council geographical area. Butterwick Hospice established a good collaborative relationship with North Tees and Hartlepool NHS FT, with the focus on re-opening the AIPU beds. An application was submitted lo CQC in March 2023 to vary the conditions and this was authorised in June 2023. This enabled AIPU lo also admit patients from North Tees and Hartlepool NHS FT that were receiving non-complex end of life care. Through a SeNice Level Agreement with NT&H NHS FT. the AIPU is staffed by registered nurses and healthcare assistants seconded fTom the Trust on a rolling 3-month rotation. Clinical Nurse Specialists and consltitants provide clinical cover. The objective5 are.. To provide a 24 hovr, 7 days a week inpatient service. To provide holistic multidisciplinary care, that meets the physical. emotional, spiritual and social needs of patients and. as relevant, Iheir carers and relatives. To provide nursing care. counselling. advice, complementary therapies. and bereavement sUPPOrt to patients, their carers and relalives. In all cases lo ensure patients. their carers. and relatives are supported by a team of skilled and appropriately trained staff and volunteers. Activities during 2023-2024 {from re-opening on 21 st August 20231 were.. 52 admissions for patients requiring end of life care. 48 deaths {preferred place of care). 4 dischar9es (patients who had been on the care ofthe dying person document bLtI recovered and were able to be discharged). Average length of slay was 6 days. Page 9 BUTTERWICK LIMITED (A company limited by guarantee) TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2024 ACHIEVEMENTS AND PERFORMANCE {continuedl Palliative Home Care Team The Service is for the provision of social. cultural, and personal care for adults who have a life limiting illness. This is a "sitting service for people who are nearing Ihe end of life and who wish to be cared for at home. The service is operational 7 days per week, and is provided by Health Care Assistants within the person's own home, and the focus is on providing 5UPPOrt for the patient and respite for their familylcarer. The objectives are.. To provide social and practical support for the patient. and their family. To provide care that will maintain the patient's dignity and support a sense of wellbeing. To provide support for their familylcarers a5 they are able to sleep, 01 go out, knowing that the patient is being well looked after. Activities during 2023-2024 were. 24 patients were supported by the setvice in their own home. There were 113 episodes of care. There were 907 hours of care provided. Day Care Services Day Service - Stockton.. The Day Services are delivered on an appointment basis with complementary therapist, and physiolherapy input as required, services are delivered from appropriately and attractively furnished rooms. The objectives are". To provide a day hospice service three days each week (Monday, Wednesday and Friday). To provide holistic multidisciplinary care, that meets Ihe physical. emotional, spiritual and social needs of patients and, as relevant, their carers and relatives. To provide physiotherapy. counselling. advice. Gomplemenlary therapies. and bereavement support to patients, their carers and relatives In all cases to ensure patients. their carers, and relatives are supported by a team of skilled and appropriately trained staff and volunteers. Activities during 2023-2024 were.. 560 patients attended the seNic8. There were 820 episodes of care. There wère 93 physiotherapy treatments provided. There were 506 complementary therapy treatments provided. There were 221 episodes of wellbeing group attendance. Page 10 BUTTERWICK LIMITED (A company Ilmited by guarantee) TRUSTEES, REPORT (CONTINUED} FOR THE YEAR ENDED 31 MARCH 2024 ACHIEVEMENTS AND PERFORMANCE (continued) Day Service- Bishop Auckland. The Day Services are delivered on an appointment basis with nursing, complementary therapist. and physiothefapy input as required Services are delivered from appropriately and attractively furnished rooms. The objectives are: To provide a day hospice seNice three days each week {Tuesday, Wednesday. and Thursday) To provide holistic multidisciplinary care. that meets the physical. emotional, spiritual and social needs of patients and. a5 relevant. their carers and relatives. To provide physiotherapy. counselling, advice. complementary theiapies, and bereavement support to patients. their carers and relatives. In all cases lo ensure patients, their carers, and relatives are supported by a team of skilled and appropriately trained staff and volunteers. Activities during 2023-2024 were. 557 patients attended the service. There were 1059 episodes of care. There were 77 physiotherapy treatments provided. There were 800 complementary therapy treatments provided. There were 182 episodes ofwellbeing group attendance. Page 11 BUTTERWICK LIMITED {A company IFmlted by guarantee) TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2024 ACHIEVEMENTS AND PERFORMANCE Icontlnued) Family Support Famil Su ort- Stocklon-. The service offers counselling and emotional support to our palients. their families and carers. at all stages of their health journey as well as post-bereavement. The Se￿IrE also offers 1-1 counselling lo adults in our community whu have no connection to the hospice, and have a diagnosis of a life-limiting illnes5. Bereavement counselling is available for adults and children aged 6+ following the loss of a loved one, due to a life-limiting illness. The service also offers two adult bereavement groups, one supporting those bereaved less than 10 months. and one supporting those bereaved more Ihan 10 months. The leam consist5 of qualified and experienced oounsellors, supported by a group of dedicated family support volunteers. The service also supports the supervised training practice of student counsellors, enrolled at university. and working towards their qualified status. Appointments take place on a face-lo-face basis, with the option for telephone or online counselling if this is more appropriate. The objectives are.. To provide a coun5elling and bereavement support service 5 days each week IMon- Fril. To provide professional yet compassionate support. to improve emotional wellbeing when living with or befeaved by a life-limrting illness. To provide a confidential space where people feel safe to voice their thoughts and feelings. To provide support at the point it is needed, at any stage of a person's health journey, helping them adjust to living with an illnes5. and considering the impact of this on their life, both now and in the future. To provide bereavement support to adults and children. following the loss of a loved one from a life- limiting illness. Activities during 2023-2024 were.. 565 clients attended the service.. 501 were adults and 64 were children. 1046 episodes of support. 948 1to1 counselling sessions were provided." 836 were adults and 112 were children. 98 episodes of adult bereavement group sessions were attended. Page 12 BUTTERWICK LIMITED IA company limited by guarantee) TRUSTEES, REPORT ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2024 ACHIEVEMENTS AND PERFORMANCE Icontinuedl Famil Su ort- Bisho Auckland: The seNice offers counselling and emotional 5UPPQrt lo our patients. their families and carers. at all slages of their health journey as well as posl-bereavement. The service also offers 1-1 counselling lo adults in our community who have no connection to the hospice. and have a diagnosis of a life-limiting illness. Beieavement counselling is available for adulls and children aged 6+ following the loss of a loved one, due to a life-limiling illness. The service also offers adull bereavement groups, one supporting those bereaved less than 10 months. and one supporting those bereaved more than 10 months. The team consists of qualrfied and experienced counsellors. SLlPPOrted by a group of dedicated family support volunteers. The service also supports the supeNised training practice of student counsellors. enrolled at university. and WOTking towards their qualified status. Appointments take place on a face-to-face basis. with the option for telephone or online counselling if this is more appropriate. The objectives are.. To provide a counselling & bereavement support service 3 days each week {Tuesmled￿huTsl. To provide professional yet compassionate support. lo improve emotional wellbeing when living with or bereaved by a life-limiling illness. To provide a confidential space where people feel safe lo voice their thoughts and teelings. To provide support al the point it is needed. at any stage of a person's health journey, helping them adjust to living with an illness, and considering the impact of this on their life, both now and in the future. To provide bereavement support to adults and children. following the loss of a loved one from a life- limiting illness. Activities during 2023-2024 were.. 468 clients attended the service 404 were adults and 64 were children. 1109 episodes of support. 1015 1101 coun5elling sessions were provided." 723 were adults and 292 were children. 94 episodes of adult bereavement group sessions were attended. Bereavement Group Support: The bereavement social groups al Stockton and Bishop Auckland enjoy meeting up every month. The group members value the support and conversation in the safe environment created al Bultewick Hospice. They say that this group is reassuring for them as they adjust lo living without the person that was of great importance lo them. The group discusses and share5 a diverse range of issues including. but not exclusive lo, their experience of living while grieving. Two counsellors facililale the group, offering empathic support, and assisting with the flow of conversation, ensuring Ihat everyone feels included. Feedback from this group.. I love this group $0 mu¢h- I have made some amazing friends, and I never thought I would afler losing my husband. Lifesaving - forever thankful. I was feeling a bit low this morning, bul coming lo this group this afternoon feels like a great big hug. I find the group so helpful ~ il is where I can be myself and show my tears lo others who Understand. It's a safe place to be vulnerable. Page 13 BUTTERWICK LIMITED IA company limitèd by guarantee) TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 ACHIEVEMENTS AND PERFORMANCE Icontinued) Bereavement Follow Up Service: Butterwick Hospice provides a follow up bereavement support service to the families of patients who have died while accessing one of the clinical services. A condolence card and letter are sent to bereaved families within the first 2 weeks following Ihe death of the patient. The family is contacted again between 8 to 10 weeks later. Families are informed that support can be provided. should they require it. Between April 2023 and March 2024. follow up support was offered to 116 families- 111 adults and 5 children. Children's Inpatient Unit: The Children's Inpalient Unit is a 6-bed unit - 4 rooms for children O-17 years and 2 rooms for young people 18- 25 years. Bultetwick House Children's Hospice al Stockton aims lo provide specialist pallialive and end of life care for infants, children, and young people with life-limiting conditions. It Is a holistic service providing physical, emotional, and spiritual caie to the whole family throughout theirjourney. The objectives are.. To provide a 24 hoLtr. 7 days a week inpatient service. To provide short lerm respite care. To provide emergency and end of life care. To provide holistic multidisciplinary care, that meets the physical, emotional, spiritua5 and social needs of the children. and their families as a whole. To provide nursing care, counselling, advice, complemenlary therapies, and bereavement support lo the children, their familie5. and carers. In all cases to ensure the children. their carers, and relatives are supported by a team of skilled and appropriately trained staff and volunteers. Aclivilies during 2023-2024 were.. 19 childrenfyoLtng people on our caseload. 15 children / young people were admitted to the inpatient unit for respite care. O were admitted for end-of-life care. O were admitted for symptom Gontrol. There were 275 episodes of careladmissions. There was a total of 105 admissions, Page 14 BUTTERWICK LIMITED IA company limited by guarantee) TRUSTEES, REPORT ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2024 Financial revlew • Overview The Consolidated Statement of Financial Activities sets out the results of these activities directly carried out by Bullerwick Limited {Butterwick Hospice.. Butterwick Hospice at Stockton on Tees, Buttewick Hospice al Bishop Auckland and Buttemick House. Children's HospiGel as well as those of which Butlerwick Limited is ultimately in control either as a corporate Iruslee (John Butterwick Trust Day Care Centre and Hospice) or as a parent Company {Butlerwick Lotteries Limited and Butterwick Hospice Retail Limited). The statement also includes the charity's share of the results of a joint venture. North East Hospices Loltery Limited. in which il has a 250/0 interest. The Trust's function is to hold the properties at Stockton, all day-to-day running being handled by Butterwick Limited. In the year ended 31 March 2024 the group operated al a deficit of £765.397 after depreciation against the budgeted deficit of £89.226. This compares to a deficit afier depreciation of £73,682 in the previous year. The deficit reflected the continued reduction in statutory funding as a result of the closure of the Stockton Adult Inpatient Unit IAIPU}. and the addilional costs involved in reopening the unit. A project with support from North Tees & Hartlepool Foundation NHS Trust led to the reopening of the AIPU in August 2023. This iesulled in limited statutory funding in 2023124, but with the expectation of full restoration during 2024125. • Income generation Statutory Funding {NHS) The operation of the charity is partly funded by NHS England and from the local NHS Integrated Care Board, wilh the majority of the funds being raised by fundraising activities. the securing of grants and by the receipt of donations and legacies. and Ihe operations of the subsidiary companies. In the year a total of £1.195,081 was received from the NHS Trust and Commissioning Authorities which equates to 38/0 of the group's lolal income in the yeai. This cornpa￿d to £999,574 in the previous year (35 %). Business Development The Business Development team work acTOSS the wide geographical area from which the Hospices draw patients. The Business Development team are performance managed against an annual plan. The charity does not use external professional fundraisers and does not buy. sell or share donor information with any third party. Strict policies and procedures are in place to ensure compliance with fundraising best practice and standards including data proteclion and the regularily and methods of maintaining contact with donors. Income from donation5 and fundraising was £1,486,353 including legacies, this compares to £1,419,507 in 2022123. The fundraising and publicity costs are £562,985 equating to 37.9V/o of gross fundraising income 12022123 Virtually all the charity's non-NHS income arises from fundraising and public activities including maintaining contact with our many commilled supporters. The Hospice is very grateful for all Ihe support il receives, particularly from the local communilies we support. Page 15 BUTTERWICK LIMITED (A company limited by guarantee) TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 The Trustees are maintaining their investment in the Business Development team and associated costs, as they are confident that this will provide the return on investment required to support the chariiy and contribute to building a sustainable financial base to ensure the longer-term security of the Charity and the cafe it provide5 to its patients and families. • Trading subsidiaries Butterwick Hospice Retail Limited Butterwick Hospice Retail Limited is a wholly owned subsidiary which operates charity shops selling predominantly donated goods.11 pays all its trading profits lo the company by dividend. In the year Butterwick Hospice Retail Limited generated insufficient profil to pay a dividend lo the company. it did however sell items donated to the company which. including Gifl Aid reclaimed, raised £140.304 for the company 12022123 £140.318). Butterwick Lotteries Limited Butterwick Lotteries Limited is a wholly owned subsidiary which operates lotterie5 on behalf of the charity. It pays all its trading profits to the charity by donation. In the year ended 31 March 2024 Butlerwick Lotteries Limited generated £118, 352 profit for the charity {2022123 £120,730). This refleds a conlinLting gradual decline in the number of lottery players. Butterwick Lotteries Limited also administers a lottery on behalf of North East Hospices Lottery Limited (NEHL). NEHL'S profits are paid equally under Gift Aid to four local North East Hospices including the Buttewick Hospice at Bishop Auckland. NEHL generated £28.052 for the charity in the period ended 31 March 2024 12022123 £51.413). Page 16 BUTTERWICK LIMITED {A company limited by guarantee) TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 • Going concern The main risks to the Charity in fulfilling the defined objectives are. CQC rating Financial risk in terms of being able to generate sufficient income to cover expenditure and being able to pay its debts as they fall dL(e Staffing Recruitment and loss of key personnel The Senior and Management Teams have progressed the action plan lo ensure that the charity complies with regulations and continues to make improvements with the aim of further improving the CQC grading. Day Care services not falling within the scope of CQC regulation have been deregistered lo avoid unnecessary and inappropriate inspection. ButleTwick House has been rated as Good by CQC, Bulterwick Hospice Slockton AIPU has now reopened and received a full CQC inspection in May 2024, a revised rating is still awailed. Following Ihe inspeclion Ihe CQC lifted all restrictions on our services. In 2024125 the funding provided by the ICB for the AIPU was reduced by 75 /D for the period in which only 2 beds were available, full funding was restored from 5th November 2024. The resulting shortfall has been mel from charitable resetves which have therefore come under severe strain. A reque51 has been submitted to the ICB for additional funding in line with agreed reference costs from April 2025, along with one off funding in 2024125 to ensure sufficient working capilal is retained going into 2025126. If this request is unsuccessful Trustees will need lo urgently reconsider service delivery. If il is successful Iruslees are confident that the enhanced funding will allow Butlerwick to be sustainable from 2025126 onwards_ The review of Our retail model involving the rationalisation of our shop locations and the addition of larger units in more appropriate locations is expected lo increase retail income in 2024125 and beyond_ Although recruilment is generally still difficult all key positions are now filled and working well. The use of seconded staff from NT&H NHS FT for the AIPU has removed a major area of difficulty and provided an experienced and qualified team who have settled in well. Recruitment of clinical staff for the CIPU remains difficult, limiling our ability lo increase patient numbers and income. The Trustees have reviewed the cash posilion of Ihe charity for the period to 31 sl December 2025 and detailed cash flow projections have been prepared and considered along with sensitivity analysis. The charity has not had to rely on the authorised overdraft and has been able to manage payment of debts as they fall due through the funding received during the year. After making enquiries, and subject to the provision of additional funding by the ICB, the Trustees have a reasonable expectation that the Charity has adequate reserves to continue in operational existence for the foreseeable future. although it is noted that addition to reserves is iequired lo protect against the risk of unexpected costs. Please also see nole 2.2 in the financial 51alements which gives further information about the expectations on going concern. Accordingly, the Trustees continue to adopt the going concern basis in preparing the financial slatemenls. Page 17 BUTTERWICK LIMITED (A company limited by guarantee) TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2024 Reserves The charitable group's reseNes have been depleted as a result of operational deficits in past years coupled with capital expenditure. At the year-end total group reserves were £2.66m wilh £790k of this restricted and £1.8m was unrestricted. Recognising our continued dependen¢e upon unpredictable charitable activity and support the Trustees have concluded that il would be prudent at the current time. to incrementally create a reserve equating to a minimum of three monlhs operational costs. Based on current expendilure levels. three months operational Gosts amounts to approximately £948k, at 31st March 2024 free reserve5 were £382k. The Tru51ees will continue to monitor this in the year 2024125. A key priority for the Trustees is to build cash reserves in line wilh policies. Future developments The reopening of the AIPU in August 2023 marked a major step forward for Butte￿Ick in restoring our seNices and reputation within the community. Very positively. the full inspection of the AIPU by the CQC in May 2024 led to the removal of all restrictions from the seTvice, a report and ievised overall rating are still awaited. We remain committed to achieving a minimum rating of 'Good' and will continue our work to ensure this should that be necessary. Our work with North Tees & Hartlepool NHS Foundation Trust was instrumental in reopening the AIPU and we intend to continue our collaboration to expand and develop the seNices offered. The Service Level Agreement with the Trust for the provision of staff and services to 5UPPOrt the AIPU has worked well and we intend to onlinue with and build upon this. The partnership has been beneficial to both parties and will be a key element in our plans going forward. Our relationship with Ihe North East & North Cumbria Integrated Care Board (ICBI has grown stronger with gular meetings and involvement by Butterwick in developing service and contract specrfications. We have now moved from grant funding to a conlracl basis and have adopted the ICB service specification for Palliative & End of Life care services. Plans by the ICB lo use a ￿gIonal reference cost for the supply of seNices continue and we have requested that our funding is based on Ihe agreed reference cost from 2025126 onwards. If agreed this would move the funding of our services onto a much more transparent and solid foundation reflecting the actual costs involved. Hospice generated income remains critical to supporting our work and we expect the investment in our income generation team during 2023124 to pay dividends in 2024125. A renewed focus on corporate support has led to increased income and we will be working hard to ensure we retain ancl build upon our new supporters. Good Tetention and an annual addition of new supporters will lead lo a solid block of corporate funding. Increased patient numbers across all of our services are a powerful driver of awareness in the community, this in lurn becomes a key source of fundraising opportunities. The reopening of the AIPU will be a powerful driver of awareness raising, although Ihe initial restrictions on patient numbers have meant that progress has been slow. Now that the restrictions have been lifted, we expect patient numbers to increase significantly and this will impact positively on community fundraising over the next few years. Page 18 BUTTERWICK LIMITED IA company limited by guarantee) TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 The charily retail sector has been moving to a model of larger stores in more accessible locations with parking and other atlraclions on hand. The opening in February 2024 of the first such store for Butlerwick in Bishop AuGkland retail park has been successful and our intention is lo open further such stores in strategic locations to sil alongside our existing shops providing a local presence and mainlaining awareness. Online sales Ihrough a number of pre-owned clothing platfoTrnS offer the potential to increase mar9ins, we will be increasing our online presence to maximise profitability from higher quality stock. We are committed to growing our telail operations into a major source of funding for the hospite. It is widely recognised that the whole hospice sector is currently under financial pressure with the vast majority using some element of reserves lo maintain services. Intensive lobbying by Hospice UK has increased awareness of this issue and resulted in Tecognilion by the government that the current situation is unsustainable. It is hoped that thi5 will lead to increased funding. although the amount and timing of any decision is unclear. This makes it all the more important that hospices work together to share besl practice and influence commissioning arrangements. Bulterwick is an active participant in Hospices North East & North Cumbria, a network of 12 independent hospices within Ihe footprint of the North East & North Cumbria Integrated Commissioning Board. This group has setup a number of working groups across professional disciplines lo share expert15e and explore best practice. The four h05pices within the Tees Valley have also started meeting more regularly as a group to explore way5 in which we can work more effectively logelher and speak with one voice. We expect collaboration to play an increasingly important role in the years to come. Statement of Trustees, responsibilities The Trustees {who are also the directors of the charily for the purposes of company lawl are responsible for preparing the Trustees, report antl the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Geneially Accepted Accounting Practice). Company law requires the Trustees to prepare financial statements for each financial . Under company law, the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Group and the charity and of their incoming resource5 and application of resources. including their income and expenditure. for that period. In preparing these financial statements. the Trustees are required to.. select suitable accounting policies and then apply Ihem consislenlly., observe the methods and principles of the Charities SORP {FRS 102)., make judgments and accounting estimates that are reasonable and prudent.. state whether applicable UK Accounting Standards (FRS 102} have been followed. subject to any material departures disclosed and explained in the financial statemenls-, prepare Ihe financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue in business. The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Group and the charity's transactions and disclose with reasonable accuracy at any time the financial p051tion of the Group and the charity and enable them lo ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Group and the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Page 19 BUTTERWICK LIMITED (A company limited by guarantee) TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Disclosure of information to auditors Each of the persons who are Trustees at the time when this Trustees, report is approved has confirmed that.. so far as that Trustee is aware, there is no relevant audit information of which Ihe charitable group's auditors are unaware, and that Trustee has taken all the steps that ought lo have been taken as a Trustee in order to be aware of any relevant audit information and to establish that the chafilable group's auditors are aware of that infoTmation. Auditors The auditors, Waltons Business Advisers Limited, have indicated their willingness to continue in office. The designated Trustees will propose a motion reappointing the auditors at a meeting of the Trustees. Approved by order of Ihe member f the board of TTUStees and signed on their behalf by.. Prof M Bramble Date: IE4y IZ[a* Page 20 BUTTERWICK LIMITED IA company limited by guarantee) INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF BUTTERWICK LIMITED UNQUALIFIED OPINION We have audited Ihe financial slalements of Buttefwick Limited (the 'parenl charitable companq) and its subsidiaries (the 'group'l for the year ended 31 March 2024 which comprise the consolidated slaleFnenl of finarFcial activities, the consolidated balance sheel. the charity balance sheet, the consolidated statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including 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.. give a true and fair view of the state of the Group's and of the parent charitable company's affairs as al 31 March 2024 and of the Group's incoming resources and application of resources, including its income and expenditure for the yeai 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 (UKII and applicable law. Our responsibilities under those standards are further described in the Auditors, responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have futfilled our other ethical responsibilities in accordance with these requirement5. Vve believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. MATERIAL UNCERTAINTY RELATED TO GOING CONCERN We draw attention to note 2.2 in the financial statèments. which indicates that additional funding is required from the ICB if the group is to continue as a going concern. As slated in note 2.2. these events or conditions. along with the other matters as set forth in the note 2.2, indicate that a material uncertainty exists that may cast significant doubt on the Group's or the parent charitable company's ability lo continue as a going concern. Our opinion is not modified in respect of this maller. In auditing the financial statements. we have concluded that the Trustees. use of the going concern basi5 of accounting in the Preparation of the financial statemenls is apppropriate. Our evaluation of the Trustees, assessment of the Group's ability to continue lo adopt the going con￿rn basis of accounting included discussions with management and a ieview of the budgets and cash flows prepared for 2024125 and 2025126. These were compared lo the results to March 2024 as well as post year end results. The budgets rely upon the additional fLtnding from the ICB in relation to 2024125 being received before 31 March 2025 and additional funding being agreed 2025126. Without the additional funding in 2024125 the group is predicted to run out of cash and to run into a negative free reserves position befoTe 31 March 2025. If funding is received in 2024125 challenges still remain as the Group will have to implement costs reduction plans lo enable lo il lo return to a net surplus position allowing them to rebuild reserves. Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report. Page 21 BUTTERWICK LIMITED IA company limited by guarantee) INDEPENDENT AUDITORS, REPORT TO THE MEMBERS OF 8UTTERWICK LIMITED {CONTINUED) OTHER INFORMATION The other information comprise$ the information included in the annual report other than the financial slalements and our auditors, report thereon. The Trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, excepl lo the exlent olhetwise explicitly slated in our report, we do not express any form of assurance conclusion Ihereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsislent wilh the financial statements or our knowledge obtained in the course of the audit, or olherwise appears to be materially misstated. If we identrfy such material inconsistencies or apparent material misstatements, we are required to delermine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed. we conclude that Ihere is a material misstatement of this other information. we ale requi￿d to report that fact. We have nothing to report in this regard. MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION We have nothing to report in respect of the followng matters where the Charilie5 (Accounts and Reports) Regulations 2008 requires us to report to you if. in our opinion= the information given in the Trustees, report is inconsistent in any material respect with the financial statements,. or the parent charitable company has not kept sufficient accounting records., or the parent charitable company financial stslements are not agreement with the accounting records and returns.. or we have not received all the information and explanations we require for our audit. RESPONSIBILITIES OF TRUSTEES As explained more fully in the trustees, responsibilities statement. the Trustees {who are also the directors of the 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 fai[ view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement. whether due to fraud or error. In preparing the financial statements. the Trustees are responsible for assessing the Group's and the parent charitable company's ability to conlinue as a going concern, disclosing. as applicable. matters related lo 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. Page 22 BUTTERWICK LIMITED (A company limited by guarantee) INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF BUTTERWICK LIMITED ICONTINUEDI AUDITORS. RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS We have been appointed as auditor under section 151 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder. Our objectives are to obtain reasonable assurance about whether the financial slalements as a whole are free from material misslatemenl. whether due to fraud or error. and lo issue an auditors. report that includes our opinion. Reasonable assurance is a high level of assurance. bul is not a guarantee that an audit conducted in accordance with ISAS IUKI will always delect 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 lo 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 lo which our procedLtres are capable of detecting irregularities, including fraud is detailed below.. We gained an understandin9 of the legal and Tegulatory framework applicable to the charity and the area in which it operates, and consideied the risk of acts by the charity that were contrary lo applicable laws and regulations. including fraud. We designed audit procedures to respond to the risk, recognising that the risk of not detecting a material mistatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or international misrepfesenlations. or through collusion. We identified the greatest potential for fraud in the followin9 areas." recognition and completeness of income and posting of unusual journals. We discussed these risks with management and designed audit procredures to test the recognition and completeness of revenue. We reviewed journals posted around the year end ID look foi potential "window dressing" A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at. www.frc.org.uklauditorsrespor]sibilities. This description forms part of our auditors, report. A further descTlPtion of our responsibilities for the audit of the financial statements is localed on the Financial Reporting Council's website at.. www.frc.or .uklauditorsres onsibilities. This description forms part of our auditar5' report. Page 23 BUTTERWICK LIMITED (A company limited by guarantee) INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF BUTTERWICK LIMITED (CONTINUED) USE OF OUR REPORT This Teport is made so19￿ lo the charitable company's trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports} Regulations 2008. Our audit work has been undertaken so that we might state to the charitable companys trustees those matters we are required to state lo them in an auditors, report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charttable company and its member5, as a body, for our audit work. for this report, or for the opinions we have formed. ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2024 Unrestricted funds 2024 Restricted Endowment funds funds 2024 2024 Total funds 2024 Total funds 2023 Note RECONCILIATION OF FUNDS: Total funds brought fO￿ard 2.490,526 883,746 50.961 3,425,233 3.498,975 TOTAL FUNDS CARRIED FORWARD 1.819.219 789,656 50.961 2,659,836 3,425, 233 The Consolidated Statement of Financial Aclivilies includes all gains and losses recognised in the year. The notes on pages 32 to 55 form part of these financial statements. Page 26 BUTTERWICK LIMITED IA company limited by guarantee) REGISTERED NUMBER: 02979587 CONSOLIDATED BALANCE SHEET AS AT 31 MARCH 2024 2024 2023 Note FIXED ASSETS Tangible assèts Investments 15 2,337,727 4,626 2.433, 264 4.626 16 2,342.353 2,437,890 CURRENT ASSETS Stocks Debtors Cash at bank and in hand 17 5.494 318,752 932,267 3,047 369, 152 998, 831 18 1,256,513 7.371.030 Creditors.. amounts falling due within one year 19 {873,273) (269, 965) NET CURRENT ASSETS 383.240 1. 101.065 Creditors." amounts fallin9 due afler more than one year 20 {65.7571 (113, 722) TOTAL NET ASSETS 2.659,836 3, 425.233 CHARITY FUNDS Endowment funds Restricted funds Unrestricted funds 21 21 21 50,961 789,656 1,819,219 50.961 883. 746 2,490,526 TOTAL FUNDS 2,659,836 3. 425, 233 Page 27 BUTTERWICK LIMITED IA company limited by guarantee) REGISTERED NUMBER: 02979587 CONSOLIDATED BALANCE SHEET ICONTINUEDI AS AT 31 MARCH 2024 The charity was entitled to exemption from audit under section 477 of the Companies Act 2008. The members have not required the entity to obtain an audit for the year in question in accordance with section 476 of the Companies Act 2006. However, an audit Is required in accordance with section 1 $1 of the Charities Acl 2011. The Trustees acknowledge their responsibilities for complyin9 Wlth Ihe requirements of the Act with respecl to accounting records and prepafation of financial statements. The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime. The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by.. Prof M Bramble Date.. The notes on pages 32 10 55 form part of these financial statements. Page 28 BUTTERWICK LIMITED IA company limited by guarantee) REGISTERED NUMBER: 02979587 CHARITY BALANCE SHEET AS AT 31 MARCH 2024 2024 2023 Note FIXED ASSETS Tangible assets Investments 15 788,533 4,630 823,053 4, 630 16 793.163 827. 683 CURRENT ASSETS Stocks Debtors Cash at bank and in hand 17 18 1,122 640.434 813,175 1.044 588. 685 856,319 1.454,731 1,446.048 Creditors.. amounts falling due within one year 19 1768.7751 (24g, 052) NET CURRENT ASSETS 685,956 1, 196,996 Creditors.. amounts falling due after more than one year 20 (65,7571 (113. 722) TOTAL NET ASSETS 1,413,362 1.910,957 CHARITY FUNDS Restricted funds Unrestricted funds 21 789,656 623.706 878,742 1.032,215 21 TOTAL FUNDS 1,413.362 1.910,957 Page 29 BUTTERWICK LIMITED (A company limited by guarantee) REGISTERED NUMBER." 02979587 CHARITY BALANCE SHEET {CONTINUEDI AS AT 31 MARCH 2024 The charity was entitled to exemption ffom audit under section 477 of the Companies Act 2006. The rnembers have not required the entity to obtain an audit for the year in question in accordance with seclion 476 of the Companies Act 2006. However, an audit is required in accordance with section 151 of the Charities Act 2011. The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements. The financial statements have been prepared in accordance with Ihe provisions applicable lo entities subject to the small companies regime. The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by.. Prof M Bramble Dale. The notes on pages 32 to 55 form part of these financial statements. Page 30 BUTTERWICK LIMITED (A company limited by guarantee) CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2024 2024 2023 CASH FLOWS FROM OPERATING ACTIVITIES Net cash used in operaling activities {19,521 > 14,551 CASH FLOWS FROM INVESTING ACTIVITIES Dividends. interests and rents from investments Purchase of tangible fixed assets Receipts from joint venture 30 127.160) 28,052 (69,371) 36.277 NET CASH PROVIDED BYIIUSED IN} INVESTING ACTIVITIES 922 (33,089) CASH FLOWS FROM FINANCING ACTIVITIES Repayments of borfowing {47,965) (42.111) CHANGE IN CASH AND CASH EQUIVALENTS IN THE YEAR 166,564) (60, 649) Cash and cash equivalents at the beginning of the year 998,831 1.059.480 CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR 932,267 998, 831 The notes on pages 32 to 55 form part of these financial statements Page 31 BUTTERWICK LIMITED IA company limlted by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 GENERAL INFORMATION The charity is a company limited by guarantee and regISte￿d in England and Wales. The members of the harily are the Trustees named on page . In the event of the charity being wound up. the liability in respect of the guaranlee is limited to £1 per member of the charity. The registered office address is.. Butlerwick Hospice Middlefield Road stockton on Tees Cleveland TS19 8XN ACCOUNTING POLICIES 2.1 Basis of preparation of financial statements The financial statements have been prepared in accordance with the Charities SORP {FRS 102) Accounting and Reporting by Charities= Statement af Recommended Practice applicable lo charities preparing their accounls in accordance with Ihe Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019). the Financial Reporting Standard applicable in Ihe UK and Republic of Ireland {FRS 102) and the Companies Act 2006. Bullerwick Limited meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless olhetwise stated in the relevant accounting policy. The consolidaled statement of financial activities (SOFA) and consolidated balance sheet consolidale the financial statements of the charity and its subsidiary undertakings. The results of the subsidiaries are Gonsolidated on a line by line basis. The charity has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own slalement of financial activitie5 in these financial statements. The income and expendrture account for the year dealt wtth in the financial slatements of the charity was a deficil of £497,595 (2023.. £49.520 surplus). Page 32 BUTTERWICK LIMITED IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 ACCOUNTING POLICIES (CONTINUED) 2.2 Going concern As outlined in the Trustee Report. the Senior and Management Teams have progressed the action plan to ensure that the charity complies wrth regulations and continues lo make improvements with the aim of further improving the CQC grading. Butlenmick Hospice Stockton AIPU has now reopened and received a full CQC inspection in May 2024, 8 revised rating is still awaited. Following the inspection the CQC lifted all iestriclions on our services. The review of our retail model. involving the rationalisalion of ovr shop locations and the addition of larger units, reached a key stage during the year with the opening of our first large store in Bishop Auckland. Initial trading has been positive and is expected to be the foundation for increased retail income in 2024125 and beyond. In 2024125 the funding provided by the ICB for the AIPU was reduced by 75 % for the period in which only 2 beds were available, full funding was restored from 5th November 2024 The iesulting shortfall has been met from charitable reserves which have therefore come under severe strain. A request has been submilled to the ICB for additional funding in line with agreed reference costs from April 2025. along with one off funding in 2024125 to ensure sufficient WOTking capital is retained going into 2025126. If the request Is successful trustees are confident that the enhanced funding will allow BulteTwick to be sustainable from 2025126 onwards. If the request is unsuccessful the cash position will become critical and Trustees will need to urgently consider the ongoing viabiltty of the charity. The Trustees have reviewed the cash position of the chaTily for the pefiod to 31 st December 2025 and detailed cash flow proiections have been prepared and considered along with sensitivity analysis. After making enquiries, and subject to the provision of the additional funding requested from the ICB. the Tru51ees have a reasonable expectation that the Charity will have adequate reserves lo continue in operational existence foi the foreseeable future, although it is noted that addition to resetves is required to protect against the risk of unexpected cosls. Accordingly, the Trustees continue to adopt the going concern basis in preparing the financial statements. Page 33 BUTTERWICK LIMITED (A company limited by guarantèe) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 ACCOUNTING POLICIES (CONTINUED) 2.3 Income All income is recognised once the charity has entitlement to the income, it is probable that the income will be re￿iVed and the amount of income receivable can be measured reliably. For legacies. entitlement is taken as the earlier of the date on which either: Ihe charity is aware that probale has been granted. the estate has been finalised and notification has been made by the executor{51 lo the Trust that a distribution will be made, or when a distribution is received from Ihe eslale. Receipt of a legacy. in whole or in part, is only considered probable when the amount can be measured reliably and the charity has been notified of the execulorfs intention to make a distribution. Where legacies have been notified to the charity, or the charity is aware of the granting of probate. and Ihe crileria for income recognition have not been mel, then the legacy is treated as a contingent asset and disclosed if matersal. Gifts donated for resale are included as income when they are sold. No amounts are included in the financial statement5 for services donated by volunteers. Where goods are donated under the gift aid scheme the charity is not entitled to the income until the goods are 501d and the donor has confirmed that they are gifling the proceeds. In this case the income is included as a donation rather than as a Sale. Income tax recoverable in relation to donation5 received under Gift Aid or deeds of covenant is recognised al the time of Ihe donation. 2.4 Expenditure Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expendilufe is classrfied by activity. The costs of each activrty are made up of the tolal of direct costs and shared costs. including support costs involved in undertaking each activity. Dirèct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to rn0￿ than one activity and support costs which are not atlribulable lo a single activity are apportioned bet￿een those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent. and depreciation charges allocated on the portion of the assel's use. Fundraising costs are those incurred in seeking voluntary contributions and do not include the costs of disseminating information in support of the charitable activities. Support costs are those cosls incurred directly in support of expenditure on the objects of the charity. Costs of generating funds are costs incurred in attracting voluntary income. and those incurred in trading activities that raise funds. 2.5 Tangible fixed assets and depreciation Tangible fixed assets are carried al cost, nel of depreciation and any provision for impairment. Page 34 BUTTERWICK LIMITED IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 ACCOUNTING POLICIES {CONTINUEDI 2.5 Tangible fixed assets and depreciation {continued> Depreciation is provided at rates calculated to write off the cost of fixed assets, less their estimated residual value, over their expected useful lives on the following bases". Freehold property Long term leasehold property over 50 years over 50 years, the period of the lease or until the first break clause over 5 years over 4 10 10 years over 5 years Short-term leasehold property Furniture & Equipment Motor vehicles 2.6 Investments Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the balance sheet dale, unless the value cannot be measured reliably in which case il is measured at cost less impairment. Investment gains and losses, whether realised or unrealised. are combined and presented as 'Gainsl(Lossesl on investments, in the consolidated statement of financial activities. Investments in subsidiaries are valued at cost less provision for impairment. Investments in joint ventures are slated al the amount of the Group's share of nel assets. The consolidated statement of financial activilies includes the Group's Share of the joint ventures, nel income or expenditure using the equity accounting basis. As the joint venture is a charity, the investment is presented within restricted funds. 2.7 Stocks Stock of unsold donated goods are not valued for balance sheet purposes. Stocks of merchandise are valued at the lower of cost and nel realisable value. 2.8 Debtors Trade and olhei debtors are recognised at the settlement amount aftei any trade discount offered. Prepayments are va5ued at the amount prepaid net of any trade discounts due. 2.9 Cash at bank and in hand Cash al bank and in hand includes cash and short-lerm highly liquid investments with a short malurily of three months or less from the dale of acquisition or opening of the deposit or similar account. 2.10 Llabilities and provisions Liabilities are recognised when there is an obligation at the balance sheet date as a result of a past event. it is probable that a transfer of economic benefil will be required in selllement, and the amount of the settlement can be estimated reliably. Liabilities are recognised al the amount that the chaflty anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services il must provide. Page 35 BUTTERWICK LIMITED IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 ACCOUNTING POLICIES ICONTINUEDI 2.11 Financial instruments The Group only has financial assets and financial liabilities of a kind that qualify a5 basic financial instruments. Basic financial instruments are initially recognised at Ifansaction value and subsequently measured at their seltlemenl value with the exception of bank loans which are subsequently measured at amortised cost using the effe¢live interest method. 2.12 Pensions The charity conlributes lo a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the group pays fixed contributions into a separate entity. once the contributions have been paid the charity has no further payment obligations. The contributions are recognised as an expense in the statement of financial activity when they fall due. Amounls not paid are shown in accruals as a liability in the balance sheet. The assets of the plan are held separately from the charity in independently administered funds. 2.13 Fund accounting General funds are unrestricted funds which are available for use al the discretion of the Trustees in furtherance of the general objectives of the Group and which have not been designated for other purposes. Restricted funds are funds which are to be used in accordance with specific reslrictions imposed by donors or which have been raised by the Group for particular pufposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial stalements. CRITICAL ACCOUNTING ESTIMATES AND AREAS OF JUDGMENT The preparation of the financial statements requires management to make judgments, estimates and assumptions that affect the amounts reported. These estimates and judgments are continually reviewed and are based on experience and other factors. includin9 expectations of future events that are believed to be reasonable under the circumstances. In preparing these financial statements the Truslee5 have used the going concern basis of accounting. As explained in nole 2.2 the charity faces a number of challenges and has requested additional funding from the ICB. If the request is successful truslees are confident thal the enhanced funding will allow Butterwick to be sustainable from 2025126 onwards. If the request is unsuccessful the cash p051tion will become critical and Trustees will need to urgently consider the ongoing viability of the charily. Page 36 BUTTERWICK LIMITED (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 INCOME FROM DONATIONS AND LEGACIES Unrestricted Restricted funds funds 2024 2024 Total funds 2024 Total funds 2023 Donations Legacies Grants 338.584 566.494 38.500 11.890 350,474 566,494 86,052 443.343 398.211 102,922 47.552 943,578 59,442 1.003.020 944. 476 Tolal 2023 882, 998 61,478 944.476 INCOME FROM CHARITABLE ACTIVITIES Restricted funds 2024 Total funds 2024 Total funds 2023 stockton on Tees Hospice Bishop Auckland Hospice Childrens Hospice National Health Service England 247,155 529,859 418.067 247,155 529,859 418,067 119, 108 519,249 361, 185 32 1.195,081 1,195.081 999,574 Total 2023 999. 574 999,574 Included within the balance above is £NIL 12023.. £32) received from NHSE (National Health Service England). The NHSE awarded funding to provide bed capacity and community support frorn November 2020 to March 2021 and then again from December 202110 March 2022 for the same purpose. Page 37 BUTTERWICK LIMITED IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 FUNDRAISING INCOME Unrestrlcted Restricted funds funds 2Q24 2024 Total funds 2024 Total funds 2023 Other charitable income Bishop Auckland Hospice Childrens Hospice Lottery 187,433 10,728 15.255 248.953 20,764 208,197 160.284 10,728 14.737 200 15,455 8, 828 248.953 291, 182 Total 2024 462,369 20.964 483,333 475,031 Tol812023 472.697 2.334 475.031 TRADING ACTIVITIES Unrestricted Restricted funds funds Total funds Total funds 2024 2024 2024 2023 Charity trading income Charity shops 441,203 7,790 441,203 7.218 334,435 18,260 other trading activities (5721 448,993 {572} 448.421 352, 695 Fundraislng trading expenses Charity shops Wages and salaries 377.989 340,989 54 377,989 340,989 54 232.910 291,049 920 Depreciation 719,032 719,032 524.879 Nel {expenditure}lincome from trading activities (270,039) {572) 1270,611) (172. 784) (174, 895) 2,711 (172.184) Total 2023 The £572 relates to a credit note issued for prior yeaf aromatherapy seNices where the service was never delivered due to covid. Pa9e 38 BUTTERWICK LIMITED IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 INVESTMENT INCOME Unrestricted Restricted funds funds 2024 2024 Total funds 2024 Total funds 2023 Share of joint venture net income Investment income 28,052 28.052 30 51,413 30 30 28,052 28.082 51,418 Total 2023 5t,413 51.418 COST OF RAISING FUNDS Unrestricted funds 2024 Total funds 2024 Total funds 2023 Fundraising Lottery Wages and salaries 110,664 110.664 108,262 108.262 344.059 344,059 56,938 138,897 211.914 Total 2024 562,985 562,985 407, 749 Tolal 2023 407, 749 407, 749 Page 39 BUTTERWICK LIMITED (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 10. ANALYSIS OF EXPENDITURE ON CHARITABLE ACTIVITIES Summary by fund type Unrestricted Restricted funds funds 2024 2024 Total funds 2024 Total funds 2023 Stockton on Tees Hospice Bishop Auckland Hospic6 Childrens Hospice 292,875 113,158 1,305,802 379,741 549.741 1,598,677 492,899 549,741 1, 114,256 411,644 438, 348 406.033 2,235.284 2,641,317 1,964, 248 Tolal 2023 351,381 1,612,867 7, 964,248 11. ANALYSIS OF EXPENDITURE BY ACTIVITIES Activities undertaken directly 2024 Support costs 2024 Total funds 2024 Total funds 2023 Stockton on Tees Hospice Bishop Auckland Hospice Childrens Hospice 916,842 281,456 410.039 681,835 211,443 139,702 1,598,677 492,899 549,741 7, 114.256 411,644 438, 348 1,608,337 1,032,980 2,641,317 1,964,248 Total 2023 1,065,090 899, t58 1. 964, 248 Page 40 BUTTERWICK LIMITED IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 11. ANALYSIS OF EXPENDITURE BY ACTIVITIES {CONTINUED) Analysls of direct costs Stockton on Tees Hospice 2024 Bishop Auckland Hospice 2024 Childrens Hospice 2024 Total funds 2024 Total fu17ds 2023 Wages and salaries Patient care Premise5 Occupational health Staff travel Volunteer travel Recruitment Training & education Clinical supervision Administration costs NHS charges Exceptional expenses 327,340 77,768 21.324 254,171 16.538 5.806 393,046 11,354 4.156 250 12 974,557 105,660 31,286 250 4,073 1,473 895.302 724.383 10,086 731 1,831 437 2.230 1,036 3,303 1,169 767 929 125 1,221 2.275 1,550 25,710 461,503 2.270 2.540 8. 101 1,550 25.710 461.503 16,438 916,842 281,456 410,039 1.608,337 1, 065, 090 Tol812023 360.033 318.230 386,827 1.065,090 Page 41 BUTTERWICK LIMITED (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 11. ANALYSIS OF EXPENDITURE BY ACTIVITIES (CONTINUED} Analysls of support costs Stockton on Tees Hospice 2024 Blshop Auckland Hospice 2024 Childrens Hospice 2024 Total funds 2024 Total funds 2023 Staff costs Depreciation Patient care Premises Staff travel Volunteer travel Recruitment Training & education Administration cosls Bank charges Telephone & fax Printing postage & stationery Insurance IT & Internet costs Equipment maintenance Audit fees 352.007 76,459 1,327 94,757 2,799 110,902 28.773 85,071 11,516 547,980 116,748 1,327 182,662 2,799 435.093 109,935 409 173, 768 4,234 218 47,665 40.240 1,331 8,571 3,658 14.276 5,619 4.494 46,422 38,650 13,239 18,226 1,331 8,809 3.810 14.276 8,337 5,279 46,422 53,053 21,921 18.226 1,081 9, 892 6.945 16.805 9, 625 3.654 37.325 57.864 17.809 14,501 238 152 2,661 482 57 303 11,888 8,682 2,515 681,835 211,443 139,702 1,032,980 899, 158 Total 2023 754.223 93,414 51.521 899, 158 Support costs which are split over more Ihan one area have been split based on staff time. During the year ended 31 March 2024. the charity incurred th8 following Governance costs.. £66.312 {2023 £99,328) included within the table above in respect of Direct & Support costs - Stockton on Tees Hospice. £17,470 {2023 £NIL) included wilhin the table above in respect of Direct & Support costs - Bishop Auckland Hospice. £15,141 12023 £NILI included within the table above in respect of Direct & Support costs - Childrens Hospice. Page 42 BUTTERWICK LIMITED IA company limited by guaianteel NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 12. AUDITORS, REMUNERATION 2024 2023 Fees payable to the group's auditor for the audit of the group's annual accounts 13,220 12,470 Fees payable to the charitls auditor in respect of.. All non-audit services not included above 5,140 5,300 13. STAFF COSTS Group 2024 Group 2023 Charity 2024 Charity 2023 Wages and salaries Social secuTlty costs Contribution to defined contribution pension schemes 1,954,356 142,880 1, 649.207 115.836 1,622,090 120,710 1,354.364 97,179 110.349 68,315 101.457 61,371 2,207.585 1, 833. 358 1,844,257 1,512,914 The average number of persons employed by the charity during the year was as follows". Group 2024 Group 2023 No. Charity 2024 Charily 2023 Childrens H05pice Stockton Adults Bishop Auckland Hospice Butterwick Lottery Butlerwick Relail 13 46 16 19 13 46 16 19 49 49 18 18 16 16 93 107 75 86 No employee received remuneration amounting to more than £60.000 in either year. Total remuneration of key management personnel in the year was £175,558 {2023'. £200,476). Page 43 BUTTERWICK LIMITED (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 14. TRUSTEES. REMUNERATION AND EXPENSES During the year, no Trustees received any remuneration or other benefits (2023 - £NIL). During the year ended 31 March 2024, no Trustee expenses have been incurred (2023 - £NIL). 15. TANGIBLE FIXED ASSETS Group Long-term Short-term Furniture Freehold leasehold leasehold and property property property equipment Motor vehicles Total Cost At 1 April 2023 Additions Disposals 1,074,026 2,899.520 35,105 1,313,067 27,160 40,562 5,362,280 27,160 (9,1651 19,1651 At 31 March 2024 1,074.026 2.899,520 35,105 1.340,227 31,397 5,380,275 Depreciation At 1 April 2023 Charge for the year On disposals 443,847 24,338 1,208,823 59,911 35,105 1,206,303 32,824 34.938 2,929,016 117,073 (3,541) 13,541) At 31 March 2024 468,185 1,268,734 35,105 1,239,127 31.397 3,042.548 Net book value At 31 March 2024 605,841 1,630,786 101,100 2,337,727 At 31 March 2023 630, 17g 1, 690, 697 106, 764 5, 624 2,433,264 Page 44 BUTTERWICK LIMITED IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 15. TANGIBLE FIXED ASSETS (CONTINUED) Charity Long-term leasehold property Furniture and equipment Freehold property Motor vehicles Total Cost At 1 April 2023 Additions 1,074,026 132.551 1.297,741 27,160 31,397 2,535,715 27,160 At 31 March 2024 1,074,026 132,551 1.324.901 31.397 2,562,875 Depreciation At 1 April 2023 Charge for the year 443,847 24,338 44,372 4.572 1,193,046 32,770 31.397 1,712,662 61,680 At 31 March 2024 468,185 48,944 1,225,816 31.397 1,774,342 Net book value At 31 March 2024 605,841 83,607 99,085 788,533 At 31 March 2023 630, 7 79 88,179 104. 695 823.053 Page 45 BUTTERWICK LIMITED (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 16. FIXED ASSET INVESTMENTS Investmen* in joint ventures Listed investments Total Group Cost At 1 April 2023 4,625 4,626 At 31 March 2024 4,625 4,626 Investments in subsidiary Listed companies investments Investment in joint ventures Total charity Cost At 1 April 2023 4,625 4.630 At 31 March 2024 4,625 4.630 Page 46 BUTTERWICK LIMITED {A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 16. FIXED ASSET INVESTMENTS (CONTINUED) PRINCIPAL SUBSIDIARIES AND JOINT VENTURES The following were subsidiary undertakings of the charity.. Names Company number Charity Basis of registration control number Holding Butterwick Hospice Retail Limited Butterwick Lotleries Limited John Bulterwick Trust Day Care Centre and Hospice 02775096 03141067 Shares Shares Sole Trustee 515705 The financial results of the subsidiaries for the year were-. Names Income ExpenditUTe ProfiUILossl I Surplusl (Deficit) for the year Butlerwick Hospice Retail Limited Butte￿iCk Lolteries Limited John Butlerwick Trust Day Care Centre and Hospice 508.737 248.953 53 1720.1461 1130,6011 {56.446} 1211,409) 118,352 156.3931 The net assets of the subsidiaries at the 31 March 2024 were. Names Net assetsllliabilities) Butte￿1¢% Hospice Retail Limited Bulle￿iCk Lotteries Limited John Bullemick Trust Day Care Centre and Hospice {345,0371 1.591.513 The following was a joint venture of the charity.. Name Holdlng North East Hospices Lollery Limited 250/0 North East Hospices Lottery Limiled's principal activity is the operation of a lollery. 11 has agreed to pay all of its trading profits equally to the four hospices which own it. Page 47 BUTTERWICK LIMITED IA company Ilmited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 17. STOCKS Group 2024 Group 2023 Charity 2024 Charity 2023 Merchandise Stamps Fundraising stock 4,372 314 808 2.003 236 808 314 236 808 808 5.494 3.047 1,122 1. 044 18. DEBTORS Group 2024 Group 2023 Charity 2024 Charity 2023 Amounts owed by group undertakings 385,564 385,564 Trade debtors Amounts owed by group undertakings Other debtors Prepayments and accrued income 96,291 182,431 78,764 19,198 123,080 33.828 170. 789 289, 187 82.718 45,991 147,809 74.652 100.956 85. 765 318.752 369, 152 640,434 588, 685 Page 48 BUTTERWICK LIMITED (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 19. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR Group 2024 Gmup 2023 Charity 2024 Charity 2023 Bank loans Trade creditors Amounts owed to group UFidertakings Other taxation and social security Other creditors Accruals and deferred income 50,000 639,716 3,882 34,093 69,551 76,031 50, 000 58, 794 50,000 599,414 47.486 34.093 18.045 19,737 50. 000 41,615 42,429 28, 777 37.930 48,301 28, 777 38,651 93, 743 873,273 269, 965 768,775 249, 052 The bank loan consists of a bounce back loan and a fixed term loan. The fixed term loan is secured by way of a legal charge over the assets of the charity. Group 2024 Group 2023 Charily 2023 Deferred income at 1 April 2023 Resources deferred during the year Amounts released from previous periods 40.090 3B,826 {40,0901 50, 148 40,090 (50, 748) 38,826 40,090 Deferred income represents Lottery payments received in advance. 20. CREDITORS." AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR Group 2024 Group 2023 Charity 2024 Charity 2023 Bank loans 65,757 113,722 65,757 113, 722 Page 49 BUTTERWICK LIMITED (A company lirnited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 21. STATEMENT OF FUNDS STATEMENT OF FUNDS - CURRENT YEAR Balance at 31 March 2024 Balance at 1 April 2023 Transfers inlout Income Expenditure Unrestricted funds General Funds Funds within non charitable subsidiaries 2,624,154 1,097,280 1838.475) (718,7051 2,164,254 (133,6281 757,690 1849,5751 {119,522) {345.035) 2,490,526 1,854,970 {1,688,050) (838.2271 1.819,219 Endowment funds Endowmenl Funds 50,961 50,961 Restricted funds Bishop Auckland Hospice Stockton on Tees Hospice Children's Hospice Dignity in Care Bishop Auckland Hospice Dignity in Care Stockton on Tees Hospice Outpatient Supportive Services Bishop Auckland Funds in joint venture 365,250 89,316 75.226 529,859 326,789 418,267 (370,7991 11.304,4181 1549,741) (197,641) 978,351 85,569 326.669 90,038 29,321 29,627 11,702) 27,925 49,196 (1,3841 47,812 275.130 (7,240) 267.890 28,052 128,052) 883,746 1,302,967 12,235,284) 838.227 789,656 Total of funds 3,425,233 3,157,937 (3,923,334) 2,659,836 Page 50 BUTTERWICK LIMITED (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 21. STATEMENT OF FUNDS (CONTINUED) STATEMENT OF FUNDS - PRIOR YEAR Balance al 31 March 2023 Balance al l April 2022 Transfers in/oul Income Expenditure Unrestricted funds General Funds Funds within non charitable subsidiaries 2.641,926 964.977 (594, 102) (388, 647) 2. 624, 754 (61,538) 740, 707 (689,907J (122,890) (133, 628) 2. 580,388 1, 705. 684 (1,284.009) (511,537) 2.490, 526 Endowment funds Endowment Funds 50.961 50.961 Restricted funds Bishop Auckland Hospice Stockton on Tees Hospice Children's Hospice Dignity in Care Bishop Auckland Hospice Dignity in Care Stockton on Tees Hospice Outpatient Supportive Services Bishop Auckland Funds in joint venture 371.280 92,347 40,527 542,986 121,474 401.637 f342.415J (822. 646) (438,348) (206, 601) 698, 147 71,410 365.250 89.316 75, 226 30.461 (834) 29,627 50.580 (1, 384) 49,196 282, 370 (7, 240) 275. 130 51,473 (51,473) 867.566 1,117,510 (1,612,867) 511,537 883, 746 Total of funds 3.498,915 2, 823. 194 (2, 896, 876) 3.425, 233 Page 51 BUTTERWICK LIMITED IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 STATEMENT OF FUNDS (CONTINUED) The Blshop Auckland Hospice fund operates to raise funds for the day lo day running of a hospice at Bishop Auckland. A transfer has been made from this into general to fund the core team which is essential to ensure compliance and the safe provision of services. The Stockton on Tees Hospice fund operates to raise funds for the day to day running of a hospice at Stockton on Tees. This 15 the largest cost and one of the primary charitable activities and income raised from unrestricted events and donations made without restrictions helps to fund this area. The Children's Hospice fund operates to raise funds for the day to day running of the children's hospice at Stockton on Tees. This is partially funded by a grant from NHS England. A transfer has been made from unrestricted funds to help fund this area. The Dignity in Care and Outpatient Supportive Services funds represent grants provided by the Department of Health to help fund improvements to Ihe hospices. Fixed asset expenditure when incurred and depreciation of those assets is charged to the appropriate fund over the life of the asset. The Endowment fund was created through the gift of the original hospice building. This was subsequently sold and the proceeds and related gains have been reinvested in the existing hospice premises. 22. ANALYSIS OF NET ASSETS BETWEEN FUNDS ANALYSIS OF NET ASSETS BETWEEN FUNDS - CURRENT PERIOD Unrestrlcted Restricted Endowment funds funds funds 2024 2024 2024 Total funds 2024 Tangible fixed assets Fixed asset investments 1.498,233 4,626 1,245,670 (863,553} {65,757) 788,S33 50,961 2,337,727 4.626 1.256,513 (873,273) (65.7571 Current assets Creditors due within one year Creditors due in more than one year 10,843 (9,720) TOTAL 1.819,219 789,656 50,961 2,659,836 Page 52 BUTTERWICK LIMITED IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 22. ANALYSIS OF NET ASSETS BETWEEN FUNDS (CONTINUED) ANALYSIS OF NET ASSETS BETWEEN FUNDS - PRIOR PERIOD Unreslricted lunds 2023 Reslricled Endowmanl funds lunds 2023 2023 Total funds 2023 Tangible fixed assets Fixed asset investments Current assets Creditors due within one year Creditors due in more than one year 1, 559,252 4. 626 1. 290.564 {250, 194) (113,7221 823,051 50.961 2.433,264 4,626 1,371.030 (269.965) (113, 722) 80,466 {19,771) TOTAL 2.490,526 883.746 50,961 3,425. 233 RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASH FLOW FROM OPERATING 23. ACTIVITIES Group 2024 Group 2023 Nel expenditure for the period {as per Statement of Financial Activities} (765,397> [73, 682J Adjustments for: Depreciation charges Dividends. interests and rents from investments Loss on the sale of fixed assets Decreasel(increasel in stocks Decreasel(increasel in debtors Increase in creditors Receipts from joint venture Joint venture deblor movement 117,073 130) 5,624 (2,4471 50.400 603.308 128,0521 111,405 {5) 2, 308 (3, 046) 13,848 (5t,413) 15,136 Net cash provided byl{used inl operating activities 119,521) 14,551 Page 53 BUTTERWICK LIMITED {A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 24. ANALYSIS OF CASH AND CASH EQUIVALENTS Group 2024 Group 2023 Cash in hand 932,267 998.831 Total cash and cash equivalents 932,267 998,837 25. ANALYSIS OF CHANGES IN NET DEBT At 1 April 2023 Cash flows At 31 March 2024 Cash al bank and in hand Bank loan within 1 year Bank loan over 1 year 998.831 {50,0001 {113,7221 166,564} 932,267 (50,000) (65,7571 47.965 835,109 {18,5991 816.510 26. CAPITAL COMMITMENTS Group 2024 Group 2023 Charity 2024 Charity 2023 Contracted for but not provided in these financial stalements Acquisition of intangible assets 6,363 6.363 27. PENSION COMMITMENTS The group contributes lo a defined contribution pension scheme. The assets of the scheme are held separately from those of the group in an independently administered fund. Some clinical staff are members of the NHS Pension Scheme and contributions are determined by the govemment actuary. The NHS Pension Scheme is an unfounded occupational scheme backed by the Exchequer. The pension cost charge represents contributions payable by the group to the fund and amounted to £110,349 12023 - £68,311. Contributions totalling £13,893 (2023- £74.261) payable lo the fund at the balance sheet date and are included in creditors. Page 54 BUTTERWICK LIMITED (A ¢ompany limlted by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 28. RELATED PARTY TRANSACTIONS During the year BUtte￿Ick Lotteries Limited provided managmenl services amounting to £nil (2023 £18.225) to North East Hospices Lottery Limited on an arms length commercial basis. At 31 March 2024. £nil 12023 - £629 was due lo Bulterwick Limited from Eastern Ravens Trust. a company with a director in common. Page 55