Annual report and financlal statements -For the year ended 31 March 2021 Bevan::Buckland LLP *PAJZESS8* 23112r2021 COMPANIES HOUSE A23 Tg Hafan - the hospice for children in Wales www.tyhafan.org Registered Charity No. 1047912 Company No. 3077406 Contents Bevan::Buckland LLP Truslees. statement ChaI￿nan,5 introduction Chief executive's statement Tg Hafan - being there Publi¢ benefit. vision, mission, and strategic objectives 13 Achievement and perfomiance 14 Fundraising 15 People (employees and volunleers) 17 Financial review 18 Structure, govemance and management 22 Managing risks and uncertainty 23 Reference and administrative details 25 Trustees, restM)nsibiltties in relation to the financial ststements 26 Independent auditors report 27 Consolidated statement of financial activities 31 Truste•s Statement Bevan::Buckland LLP The trustees confirm that their annual report and the accounts of the Chanty and tts subsidiaries for the year ending 31 March 2021, have been prepared in accordance with: the Companies Act 2006 the Charities Act 2011 TP Hafan's Articles of Association the Accounting and Reporting by Charities". Stslement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting StarKlard applicable in the UK and Republic of Ireland {FRS102). Chalrnian's Introductlon Bevan::Buckland LLP While the pandemic created challenges across society. the impact on children with lrfe- limiting conditions and their families in Wales was extreme. Already facing unimaginable difficulties in daily life. COVID-19 conditions required them to rnaintain shielding across the entire year. In response. Ty Hafan needed to adapt and innovate our services to ensure that we could continue to provide support for children,and families in the ways that they needed us. We did so by the introduction of a virtual community hospice model designed to reach our families in their homes, allowirKJ families across Wales to receive expert support and care from familiar faces at the time when it was needed most. l arn proud to say that the hospice remained open throughout the year. Families requiring emergency admissions, offering of life Ca￿ and post death transfers from hospitals were sepied by our dedicated care sen/ices team, who rose to the challenge of Working under full PPE conditions in a¢cLi￿anCe with Welsh Govemment and Public Health Wales guidance. This level of resilience was P￿sent across the organisation with our fundraising and SUPtMJrt teams maintaining focus on our key relationship with our supporters. T9 Hafan relies on the continued support of the public with their generous donations to deliver our vision and mission. and this was unwavering during the year. We saw huge support for our fundraising appeals. continued participation in our lottery, donation from major donors and business partners. and much more besides. The continued generosity of the Welsh public during a period of unprecedented anxiety and uncertainty is both humbling and heart-warming. Martin Davies Chairman of the Board Chief executive's statement Bevan::Buckland LLP In a year that saw the wortd catapufted into the grips of a global pandemic. with unprecedented disruption to both personal arKI professional lives. l am proud to report that Ty Hafan's determination lo be there for the children and families who needed us became ever MO￿ resolute. Our response was to collaborate. to become more agile and to adapt and innovate to meel the myriad of new challenges that seemed to unfold by the day. Al the start of the financial year 2020121, across the Charity, over half of our 203 staff were on furlough. arKI all of our near 500 volunteers had to step away. Colleagues showed remarkable resilience in the face of this challenge. vthether on front-line or in the back-offi￿. with those who continued to work taking on a Tange of responsibilities to enable us to continue to be there. Having joined the Charity in May, and working remotely, the imminenl challenge for myself and the executive team was to ensure we could continue to operate safely. adapting both services arKI ways of working to ensure continuity arKI support for the children and families who describe us as their 'lrfeline'. The prevalence of the virus. and the related restrictions, impacted every aspect of the Charity - our care provision. our service users and service providers, our stsff and volunteers. and. importantly our finances. as inevitably our In￿Me generatron activities were severely curtailed. As the children who access our serrfices are amongst the most vulnerable members of society requiring them to 'shield' throughout the various lockdowns, remaining COVID- secure was our ultimate priority so that we could keep our doors open for those children and families who needed crisis or end-of-life care. Our care team implemented close adherence to public health guidance, includirrtJ wearing the highest levels of PPE. and I am incredibly proud that we were able to keep our doors open throughout the pandemic. with no outbreaks of COVID-19 relating to our seniice provision; this nO￿lthstanding the ongoing major refurbishment of our hospice. Our community and partnerships team adapted to provide virtual services. ensuring that families did not feel isolated and that they were appropriately supported during this mst challeroing of times. Despite our initial trepidation (and the usual technical 'glitches'). we discovered some positives which we will embrace going foThvard. For example. we delivered our annual memorial event virtually. enabling many more families to participate, and our online therapeutic interventions enabled us to reach more children who were geographically distant to the hospice. Where possible we embraced remote working so as not to miss a beat. Inevitably. finances were severely impacted. requiring us to release resep4es to fund day-to-day operations as key sources of income We￿ curtailed. Typically receiving less than 5°/0 of our funds from Welsh Govemment, we were pleased to be the beneficiaries of govemment hospice grant funding. and job ￿tentIOn ('furlough') schemes. Our retail shops remained closed for over half of the financial year, and our events schedule for 2020121 was cancelled in its entirety resulting in the very difficult decision to restructure our events team. Opportunities for promoting bttery and collecting cash door-to4oor We￿ curtailed. Our engagement with corporates was severely compromised. ThroughoLrt our tireless fundraising efforts. we were buoyed by the generosity of our donors. supporters, granl funders and the amazing Welsh public, who responded positively to both initial virtual activities and our Th for future. campaign, yielding higher than usual income from both raffles and appeals. As we continued to invest in our organisation arKI joiners throughout the year, most of whom outside work virtually for several months before meeting their new colleagues and teams. oar many ,RdlLP The board met with us regularly. monthly al the he￿h1 of the uncertainty, to provide oversight and support. They endorsed our ambition to continue to invest in strategic and foundational projects designed to enable the charity to emerge stronger from this difficult period. l am delighted to report we made excellent progress with these initiatives whilst juggling the inevitable and often unforeseen day-to4ay challenges of restrictions, illness and self-isolation. Notably. these projects irKluded: Family Vol￿S {w4vw.tyhafan.orthmilyvoices) jointly commissioned with Ty Gobaith. the children's hospice in rK)rth Wales- to understand the needs of children with lrfe- limiting conditions and their families WI￿rn we support across Wales. The key messages, recapped below. were insightful. reiterating the importance of the services we provide: o Hospice serrfices provide essential support lo families (94Yo say respite care is essential). o The hospices are often their main. or only. source of support (85% say the hospice is their only source of respite). o Ac￿sS to respitelshort break care is essential to family coping and ¥￿IlbeIng (75 /• identrfied they would benefft from more resprte provision at the hospice). The impact on family life of providing complex care (20°/o said they V￿re isolated, 160/0 said they were lonely. 350/0 reported lrfe is dtfficult and 45°/o said life is stressful). The whole family need support (counselling and emotional support in top three services families ￿ported they wanted. but do not always receive at the levevfrequency they need). The importance of end-of-life care in a preferred setting (740/0 of families reported that knowing Ihey can access end-of-lrfe care makes a big differen￿ to their lives and 95¥0 of families who experienced their end-of-lrfe care at the hospice identified it as their preferred setting). Young people (aged 18 to 25) leaving hospice ServI￿S need more support (over 75Yo of young people identified that access io a break away was the mosl valued service provided by the hospice). Bereavement support and counselling make a differen￿ (over 800/0 of bereaved families felt that the support they had re￿iVed did meet their needs. leaving c. 20 % feeling that they needed more). Services are not always easy to aC￿sS (73% face barriers when St comes to accessing hospice services. almost 600/0 of respondents reported that respite is only someb'mes available when needed. plus 720/0 of families have to travel more than 30 minutes lo aC￿sS respite services). Families are experiencing serious financial challenges {51 % of families have an annual income less than £25.000. 210/0 of families rely on less than £12,000 a year. 870A identified that they have experienced financial hardship and 54Yo inCUr￿d debt to cover expenses wrthin the last iwo years). Describing us as their 'lrfeline' the majority of families said mre respite and longer breaks would make a difference to their lives. The findings prompted us to further collat()rate to represent their voices in.an ongoing proposal for sustainable govemment furKJing: A Lrfeline Fund for Wales (tyhafan.org) through a joint investrnent in publtc affairs. It has also infomed several ongoing strategic projects at Ty Hafan. includirYJ an extension of our reach. advocacy for families. and support for those serwces. Bey￿K8Ud(,lQ￿4èLLP Independent Care Services Review- in Spring of 2021 we received the findings of this review and are cuThently in the process of implementing a plan to address its recommendations (see re￿1 by Ihe Director of Care on page 14). 'Fit for Future. _ we progressed a project initiated in 2020121 involving a comprehensive upgrade to our 22 year old hospice facilities. funded through a public appeal. At the time of writing. the major phases of this refurbishment are drawing to a close, and we are grateful to the project team including ambassador. Steve Knapton, who acted as project manager. our employer agent. Capits and main contractors Knox and Wells as well as our own care seNices and facilities learns for their incredible tenacity and resilience in seeing this through at an incredibly difficult time. We also owe a debt of gratitude to the Charit￿$ major donors and corporate supporters who funded additional alterations that were identlfied as the project was underway. Governan￿ and Risk Management- we commenced the implementation of a quality and assuran￿ compliance system to enable more efficient processes, improved communication. dats analysis. data security and overall improvements to end-to*nd clinical governan￿ and to embed risk management across the organisation. While inevitably the wellbeing of our colleagues was compromised through the strain of both living and working through a pandemic. as well as dealing with illnesses or the loss of loved ones, there was never any doubt at)out our collective comm(tment to the vision and mission of the Charity. Care services colleagues embraced the additional burden of PPE and worked flexibly to protect and support the youThJ people and families they care about so deeply. Income generation teams. including our fundraising, philanthropy. lottery and retail teams worked incredibly hard to generate much needed funds. supported by corporate and support setvices who worked tirelessly behind the scenes to ensure our colleagues were supp)rted. Retail colleagues re-engaged with the public. focused on keeping them safe and secure while also adapting to a new ePOS system which launched at the end of the finanaal year. We also launched a new wellbeing initiative which is going from strength to strength and supported colleagues to work from home where possible while planniro to Iransition to hybrid WOTkirw arrangements where. and when. this ts feasible. As we embrace anothef winter ar￿ the uncertainties around variants of the virus, we are inspired by the children and families whose lives are unfairly challenging every day. Carrying on the legacy of the Chanvs founder. Suzanne Goodall. we are motivated to continue to give 11 Ovo to ensure we can make a drfference. We remain deeply indebted to those who support us and enable us to conlribute to the work for this y￿nderfUl charity. Maria Timon Samra Chief Executive Ty Hafan - being there Bevan°°Buckland LLP Tg Hafan exists to provide paediatric palliative care and support services for children and young people wtth life-limiting corKlitions and their families in Wales. Children and young people are described as being life-limited rf they are not expected to live beyond 18 years of age. As a chanty we support children with many different conditbons which include Duchenne muscular dystrophy, cystic fibrosis. severe cerebral palsy, cancer, and very rare genetic conditions. Some of thè children we care for have been diagrK)sed at, or before birth. some in early childhood whilst others receive no diagnosis and live with unpredictable health over an extended period of time with an uncertain prognosis. In every case. the care we provide for chiklren and families is tailored and heartfelt, and designed to meet their individual needs. It is ts)listic and family integrated. focusing on physical, emotional. social. and spiritual needs. In order to deliver the best possible standard of care. Tg Hafan has a skilled and experienced mU￿1￿lscLpllnary care team, which inclujes medical consultants, specialist nurses and therapists. famity support and play workers. The care and SLWPOrt provided by a Child￿n'S hospi￿ is different to the services typically offered by an adult hospice whose primary focus is care in the last year of life. At T9 Hafan, our care and support is lifelong, family focused, and extends over many years. For teenagers. our dedicated support continues as they move towards their 18th birthday, helping them and their family navigate the often difficult transition to adult seNices. Our aim is to be there for families when and where they need us most, and lo help them share precious moments over whatever time they have together. Such long periods of illness and extended uncertainty inevitably places a huge strain on family life, so our support is inclusive, encompassing the wider family including parents and siblings. Our support Continues after the death of a child. and we are always there for bereaved farnilies. Tg Hafan is a more than a buikjing. it is a diverse and flexible service that exiends into homes, hospital and communities across Wales. Ty Hafan's services. including the hospice in Sulty. Vale of Glarnorgan, have conts'nue to be there for children and families throughout the pandemic. providing a wide range of seNices adapted to minimise COV11>19 risks for children. families arKJ colleagues Wherever and however our services are provided. they are available completely free of charge for children and families. What we do Bevan":Buckland LLP The COVID-19 pandemic brought unprecedented challenges for the children and families who access Ty Hafan services. Many children with lrfe-limiting conditrons are extremely clinically vulnerable, meaning they were required to shield for extended periods of time. Already unfairly hard lives became suddenly more difficult. An unwavering focus on being there for children and families ensured that services were transfomied to be available. arxd accessible for as many children and families as possible. as well as safe and COVID-secure. Side by side services traditionally provided by T9 Hafan in family homes or community settings have been delivered through a virtual communty hospi￿ model. using video enabled technology to reach into family homes across our geography- familiar faces delivering valued support differently. Residential care and support at the hospice has been available for families requiring emergency admissions. and for children and young people needir¥J end of life care. Post death transfers from hospital have also been available, meaning families separated by restrictions. were able to sperKJ precious final moments with their children after they had died. Telephone support has also been available around the clock for families. and heafth and social Gare professionals. ensuriThJ a listening ear arKI aC￿sS to specialist advi￿. Service recovery plans ensured we were well prepared to step services up or down in response to changes to Welsh Govemment and Public Health Wales guidance. This resulted in the timely re-introduction of community. hospice and hospital-based services. included prowding activities for families in the summer of 2020 and in the De￿rnber before the second national lockdown. We have continued to provide lifeline support for children and families. While the pandemic has required changes to be made to how our services have been delivered. our care and support has been defined by compassion. skill and understanding. focused on providing the best FM)ssible quality of family life. Practical emotional care for the child and family was maintained as much as possible, arKJ during a time of additional financial strain. our experts We￿ able to sign post sources of additional suptM)rt. The range of services offered by TP Hafan is broad and diverse. The complexity of need as well as the unique circumstances ol each child and family means over a lifetime of support most children and families requi￿ a mix of services. servI￿s are designed to be delivered independently, but In realiiy, operate in a complimentary way that ensures support is seamless. Respite care Respite care is a lrfeline service for many families. While this core service was disrupted by the restrictions imposed by the pandemic. families V￿re able to access emergency respite care at the hospice. Recognising the impact of shielding on families, the virtual hospice model provided a range of bespoke activities to chIld￿n and families to relieve isolation and provide distraction. The resumption of residential resp%te care remains high priority for the hospice and will be reintroduced when tt is safe to do so. Respite care offers farnilies the opportunty to enjoy a short break secure in the krK)wledge their children are being well cared for. Emotional support Caring for a child with a life-limiting illness is exha to rest.and who futfil their role as parent carers with skill and expertise. Our skilled family support team is available around the clock every day of the year. The strain experienced by families during the pandemic has been intensified. The family support team has played a pivotal role in sustaining ¢>Jping through ￿gUlar support that is tailored to an individual famills unique needs. This support has been available through the virtual hospice model. and through one to one sessions at the hospice and in local communities. B￿aLK&BU[kIahx1&Lp Play and specialist Iherapies Play is at the heart of a happy childhood. and it is central to all of our work with children and families. Play specialists are a core part of our team, and skilfully help children understand or communicate their emotions, as well as maximise fun and enjoyment in their short lives. Art and music therapies also offer an essential way for children to express themselves. Specialist physiotherapy. hydrotherapy and occupational therapy is also available. Play and therapy 5UPPOrt is available through the virtual hospice model. in family homes, in ¢ommunty settings. in hospitals, and at the hospice. Sibling support The siblings of children wth lrfe-limiting conditions face unique challenges themselves. Ty Hafan offers specialist support that recognises the impact of this, and provides opportunities to understand and express their thoughls and feelings as well as develop mechanisms to help them cope and thrives against a backdrop of isolation and loss. Sibling support is age appropriate and flexes to rneet need5 over a lrfetime of support. Supsxjrt is offered at the hospice and closer to home on a one to one basis as well as groups. Practical support Families of children with lif&limiting conditions are more likely lo experience financial hardship and can find il difficult to access addbtional support. Ty Hafan is able offer signposting to sources of financial support that can make a world of.difference for families already living urKler incredible strain. End of life care Families live with the reality that the time they share with their children wrll be short. When it becomes dear that Ihis time is drawing closer. Tg Hafan is always there. We support the family as they make decisions and talk to them about their wishes. including where they would prefer their child to be cared for. Our skilled teams help them navigate this difffcult time, providing support and specialist care when and where they need it. At the very end of lrfe. we are often by their side, at the hospice. at home, or in hospital. When they have said Iheir final goodbyes. our family support team support them as they face the challenges of registering their Child's death and making plans for a funeral. rransitional care and support When a young person expecled to die in childhood approaches their 18th birthday. they and their family. need to navigate the transition from children's services to adult services. Some families describe this time as a 'cliff edge, where they move away from all that is known and familiar. and need to form new relationships with adult services. Ty Hafan has a range of services that Wofk wtth individual families to make this experience less daunting. This includes w0￿1ng across organisational boundaries so that families feel safe and supported and includes joint work with adutt hospices and other specialist teams. 10 Bereavement care Ty Hafan continues to provide SUPFK)rt for families a ereavement. This support is designed with the individual needs of families in mind, but also includes opportunith'es for families to come logether to remember their children through dedicated events arKI reMernbran￿ Servi￿5. Bereavement is experienced uniquely. and we are here for families for as long as they need us. B%!èn°°Buckland LLP Peer support Children and young people. and families. including siblings. can feel different and isolated with few others really knowing arKI understanding the challenges they face. Peer support is important and builds a sense of cnmmunity for the families we meet. This is enabled through groups events but also through privale socia5 media groups that are facilitated by Ty Hafan. This includes groups for mums. dads. siblings. young people, and bereaved families. 11 Key facts for 2020121 Bevan::Buckland LLP Number of children and young people supported: 273 Number of families supported: 406 Number of siblings supported: 72 Number of community interventions: 7.341 Seprfices lo young people transitionirKJ to adult care: 24 12 Publlc benefit and how our activlties dellver 8evan°°Buckland LLP Under the Charities Act 2011 we have a duty to repK)rt on our organisation's public benefit. The board is confKJent that we meet those public benefit requirements having taken Charity Cornmission guidance into consideration, and that our activities are consistent with our aims and objectives. Through the Charitys vision. mission and slralegic objectives, we believe that we meet the public benefft requirements as a result of the breadth of the sepdices that we deliver free of any charge to the chari￿s beneficiaries. Vision A Wales where all children who may die in childhood live a fulfilling family lrfe. Mission To offer a high standard of free care to children in Wales who may die in chikjhood in order to enrich Iheir qualrty of lrfe and support their families during life, at end-of-lrfe and through bereavement. Strat•glc objectives. Ty Hafan's strategy is intended lo achieve four core goals.. expand the reach of the Charity, develop our services. build resilience within the organisation, and invest in our people. We are commttted to demonstrating transparency and openness across all these goals and objectives. Objectives: To support the identification of all children with lif&lirniting corKlitions in Wales who may die in childhood and. in cooperation with olhers. offer them and their families. needs assessed palliative care and support. To ensure best practi￿ in the delivery of a range of unique. high qualty and complementary bespoke care services to Ghildren and their families. Aim to position Ty Hafan as the primary authority leading collaborative efforts to facilitate the development of paediatric palliative care in Wales. and as the most recognised charity in Wales. To provide sustainable furKling to support the provision of care. now and in the future. and ensure the effective and efficient use of resources. To attract. retsin, engage. and nurture Ihe best people to achieve the Chaiity's objectives. 13 Achlev•ment and Perfomiance Bevan::Buckland LLP The restrictions resulting from the Cov1￿19 crisis and the need for TP Hafan children and families to shield meant that care SeNi￿S had to be delivered through the virtual community hospi￿ model with rJisis and end of life admissions facilitated by the hospice as required. Despite these Condi￿nS there were a number of notsble achievements across the year. Hospice refurbishnlenl The success of the 'Fit for the Future. cash appeal enabled us to progress with the refurbishment of our hospice building. The hospice was opened 22 years ago and over time the building had become tired and outdated. vthilst the needs of children accessing our services have grown more complex. The aim of the refurbishment has been to retain the wami and welcoming nature of the hospice bLrt modemise and ensure a safe and secure environment in which to care for the children and allow them to enjoy their time at the facility. The needs of families have been pardmount in the preparation of the refurf)ishment plan and the beach-themed development should enable them to spend time together having fun and creating special memories. Over the course of the year a number of phases of the refurbishment have been completed with fijrther completion due in the year ahead. All of this worf( has been completed under covid-secure conditions and with the hospice remaining open throughout. Lrfeline fund TP Hafan joined forces wilh North Wales based Ty Gobaith to call for a new sustainable 'Lrfeline Furnl. and funding parity with the rest of the UK'S chiklren's hospices to ensure that all children with lrfe-limiting ￿nditionS and their families can receive the support they desperately need. Combined, the two hospices provide respite and palliative care for more than 400 families with children with lrfe-limiting conditions but receive less than 10Q/o of their annual funding from the Welsh Govemment. Children's IK)spices in England receive 21 0/0 of their funding from the UK Govemment while those in Northem Ireland and SrJ)UarKI receive 250/0 arKI 50% respectively from their govemment bodies. The proposal stems from the 'Family Voices, report published jointly by Ty Hafan and T9 Gobaith in 2020. In the report, families from across Wales expressed their experiences, hopes and fea￿, and described children's hospices as "our lifeline.. The report set out the urgent need for more of the care that only hospices can provide, especially in relation to respite care. The only two children's hospices in Wales are w0￿1ng constructively with Welsh Govemment. Members of the Senedd. and the End-of-Lrfe Care Board to find a sustsinable funding solution. 14 Fundraising Bevan::Buckland LLP The coronavirus pandemic has had a devastatTng impact on so many. and TP Hafan's fundraising activities suffered unprecedented disruption as a result of the global crisis. However. despite the tunnoil and Un￿rtaInty that characterised the year. the generous donations of supporters continued throughout. By adapting and innovating our approach to fundraising our donors were able to maintain their SUPFM)rt for us even during the bleakest periods of the crisis. Unfortunately, the pandemic caused the cancellation of all of Ty Hafan's mass fundraising events. but we were able to estsblish virtual events. which allowed supporters to continue to fundraise on our behalf in a COVI￿seCUre manner and generate much needed funds for the charity. We also encouraged individuals to set themselves challenge tssks as a way of the replacing the marathon runs or cycle rides that were not able to take pla￿. Individual supporters continued to help us by making one-off gifts or establishing regular donations via digital platforms as they were prevented from filling our collection boxes during lockdown periods. Legacy donations from supporters remembering us with a gift in their will remained a poignant and important SOU￿ of funds for the Chanty. Th generosty of philanthn)pic individuals making large donations On￿ again played a vital role in TP Hafan's furKlraising activities this year while awards from grant making bodies such as trusts and foundatrons also fom)ed an im[￿)rtant part of our income. Ffiends of Tg Hafan groups have always played a fundamental role in raising much needed donations for the charity. However. lockdowTr o)nditions curtailed the abilty to conduct their nonnal activities. Their continued support was evident as restrictions relaxed and they continue to play a pivotal role for our organisation. We were On￿ again fortunate to receive support from businesses and corporate sponsors who were responsible for delivering much needed funds across the year. The ability to reach into a business workforce to raise awareness was limited over the year but the mutual benefits of business partnerships remain an essential part of fundraising .activities. The financial support from our donors were supported by TP Hafan's commercial activities, which play an important role in enabling the chanty to create diversified income sources. A lottery was established from the inception of the chaiity and has grown to become one of Ihe largest hospice lotteries in the UK. Crackeiiackpot, a wholly owned subsidiary of Ty Hafan, is a stable revenue source and has been able to operate continuously throughout the pandemFC. TP Hafan's network of shops allow the Charity to reach across Wales and both generate income and increase aWa￿nesS in the local communrties that we serve. The network was severely impacted by Ihe pandemic with closures during lockdown periods but as these were lifted supporters returned to strK)P With us and generate with much needed income. 15 These income streams combine lo provide Ty Haf to continue providing fAre and SUPFMJrt for chiklre families in Wales. anci Fundraising perfomiance Our fundraising efft)rts w￿re severely impacted by the coronavirus pandemic. However, there were a number of significant highlights for fundraising activities over the year. £1.7m frorn entries into our Crackeriackpot k)ttery. Over 30.000 average weekly plays. £1.5m re￿iVed from individual supporters resporKling to our appeals or giving by various means such as regular weekly donations. £1.1 m received from individuals who have remembered us with a gift in their will £0.6m generated frorn our supporters shoppirKJ or donating at one of Ty Hafan ' shops across Wales. £0.4m received in grant awards from institutions such as trusts arKY foundations. £0.3m from businesses and corporate organisations that have donated funds to help deliver care and support to Ty Hafan children and families. 16 Our people Bevan°°Buckland LLP Employees Over 200 staff are employed at TP Hafan to ensure we achieve our aim of delivering the highest quality services to children with lrfe-limiting conditions and their families. Whilst we are relatively small organisation. the need to deliver care services, and fundraise to support them, requires a broad and diverse range of skills. Our staff includes phamiacists and play v￿rkers. corporate fundraisers and shop managers. lottery canvassers and registered nurses. and much more besides. Support from IT. finance. HR and facilities professionals enables the organisation to operate efficiently. Staff wellbeing is of paramount Importan￿ to us. The issues created by the pandemic were many and complex, with staff contending with the need to operate in a covid- secure manner. working from horne or furloughed underthe govemmentjob retention scheme. Maintaining staff health and well-being under these circumstances meant a greater focus was required, arid beyond the implementation of govemment guidance the charity applied a range of measures to ensure that staff were supported and nurtured during this period of uncertainty and concem. Training and personal development provide the foundation for excellence across the organisation. Bespoke training plans with both intemal and extemal programmes were implemented alongside slatutory training to ensure that staff have the skills required to deliver our strategic goals. Diversity and inclusion are fundamental to Ty Hafan as an organisation. Our processes ensure that no member of staff or job applicant receives less favourable treatment on grounds of age, disability. gender reassignment. marital status. pregnancy and matemity, religion or philosophical belief. sex and sexual orientation. Volunteers Volunteers play a vital role in the enabling Ty Hafan to support children with lrffrlimiting condrtions and their families. The scope of volunteering at the charity is too broad to detail but is fundamental in all aspects of the of the organisation from Ty Hafan's SI￿pS and the Charity's fundraising activities to its ambassadors promoting awareness. raising income, or securing gifts in wills. Volunteers devote their time to the maintenance of our extensive grounds. and even working direclly with children arKI families at the hospice and beyorKI. We are unable to capture the TrnPOrtan￿ of volunteers to ourorganisation within our financial accounts, but the organisation v￿Uld not be able to function without them and we offer our sincere thanks to each and every one. 17 Financial review and results for the year Bevan::Buckland LLP Results for the year ended 31 March 2021 are shown in the Consolidated Statement of Financial Actrvities on page 31. This shows Ihe financial results for Ty Hafan and its trading subsidiaries. TP Hafan TradirvJ Limited and Crackefjackpot Limited, which l)oth donate their profits to the charity. Income Total income received in 2020121 increased to £9.157,070 (2019120 £8,506,379). This represents an 80/a increase from the previous year. Where we received our income • Gifts in Wills Retail Lottery Investment Income LHB Fundir6 Fundraisin8 • Covid Funding 225 It is important to acknowledge the signfficant impacl the pandemic had on incorr generation. Without support from the varioLJS govemment COVID funding schemes. total income would have reduced to £6.1m. a 28 /0 reduction to 2019120. Retail income was the hardest hit as our shops were closed due to lockdown restrictions for large periods of Ihe year. Unfortunately. as a result of the pandemic we took the decision to close six of our 25 shops as they were no longer commercially viable. Expenditure Total experKliture in 2020121 fell by £864.968 (9%) to £8,527.720 (2019120 £9,392,688). There was a slight reduction of spend in the provision of care of £62.307 (10/0) with the majority of the expenditure reductFon coming in retail which fell by £534.764 (210/0) mainly due to shop closures in the year. 18 Five Year Expandituré on Charitable Actiw"ties Bevan::Buckland LLP 83% .dri 82% 84.4 79% CL 4.2 77% 76% 75% 74% 2017 2018 2019 2020 2021 Provlsion of Care l£ml % of costs excluding trading activity Excluding our trading activity in retail and lottery. 82 pence of every pound of expenditu is spent on charitable activity. This is in line with our objective to ensu￿ more of our donations are used directly on our beneficiaries. Cashflow Overall, in 2020121 there was a net cash.ouffiow of £119.136 reducing the cash held to £249,541 as at 31 March 2021. This included the wrthdrawal of £500.000 of funds from our investment portfolio during the year. Reserves The board considers the maintenance of unrestricted reserves as an essential safeguard to mitigate the risks faced by the Chanty and their potential impact on income and planned expenditure. The Charity has a responsibilty to give Confiden￿ to its beneficiaries that we can provide our services even during times of ecorK)mic uncertainty. The board has established the level of reserves using the methodology outlined in the Charity Commission guidance and has consKlered the level of required reserve's based on the assets used in the Chanty and the risks to the Chaiity and likelihood of an event occurring. The reserves policy is reviewed and agreed each year by the board. The chari￿$ reserves are detsiled in note 22 and 23 of the accounts. 19 At 31 March 2021. the Charity held £9.898.183 ' £9.760,950). The reserves were broken down as f unrestricted free rves (2020.. @van::BucTr1and LLP 3110312021 £18.718.536 £7.937.068 £883,285 £9,898 183 3110312020 £15,895,977 £5,019,414 £1.115.613 £9,760,950 Net Assets Less Desi nated Reserves Less Restricted Reserves Unrestrict•d Free Reserv•s Unrestricted free rese￿eS have increased by £137.233 (1 Yo) during the year. Designated reserves have increased by £2.917,654 (580/0) due to the inclusion of the provision for planned deficits in 2021122 arKI 2022123 totalling £2,136,000. Designated reserves also include the nel Ix)ok value of property owned by Ty Hafan. Going GOn￿M The Charitys financial position arKI perfomiance has been outlined in the financial review above. The board has assessed projected futu￿ income. expenditure and cash flows, and analysed strength of the ChariWs resepies. liquid assets and its abilty to withstand a material fall in income. Consideration has been given to the stability and diversty of various income streams in making this assessment and the challenges currently faced by the Charity due to the paThJemic. The board has concluded that there is a reasonable expectation that Ty Hafan and its trading subsidiaries. Ty Hafan Trading Limited and Crackefjackpot Limited. have adequate resources to continue actiVFties for the fO￿Seeab.1e future. The￿fore, they have continued to adopt the going concem basis in preparing the financial statements. Approach to financial investments Oecisions about the investment strategy and policy a￿ govemed by the finan￿ with govemance cornmittee and approved by tlie board. The investment policy is reviewed annually by the board. T9 Hafan's investment portfolio is rnaT￿ed by investment managers according to the board's instructions. The inveslment stralegy is formally reviewed with our investment managers and finance with govemancE committee annually and more frequently when considered necessary. During 2020121 the investment portfolio was Iransferred to newly appointed investment manager5. Brewin Dolphin following the periodic review of investment management services. Ty Hafan's investmenl risk appetite for its inveslment portfolio is consistent with a strategy of seeking to preserve and generate longer temi capital growth and income ahead of the rate of inflation in orderto grow the free reserves of the Chartty. TP Hafan d￿S not depend on inveslment retums to fund its short-tenn operats'onal requirements and is, therefore. able lo tolerate short to medium temi volatilty of its investment portfolio. The total value of the investmenl portfolio as at 31 March 2021 was £12.530.466 (2020: £10,664,014) representing an overall increase in value forthe year of £1.866,452 or +180 (2020: .10%). During the year, there was a cash withdrawal from the portfolio totslling £S00.000 (2020: £300.000). The board recognises it has a responsibility to investments. This could lead to conflicting objectives belween delivering the targeted retums and excluding certain investments that go against Ty Hafan's ethos and purpose. It is, therefore, Ty Hafan's policy to use a negative screening approach avoiding investment in companies or sectors undertaking a particular activity or operating in a way which may be harmful to TP Hafan's interests. Thts is reviewed annually alongside the investment policy review. &RK9￿$°..￿,Ufi￿1apd 44P 21 Structure, governance and management Bevan::Bucklansl,FLP Tg Hafan is a registered charitable company limited by guarantee and an indepen hospital. It is subject to company law. chanty Jaw. trust law and bound by legislation goveming the safe delivery of healthca￿. As a result of its activitbes. Ty Hafan is accountable to a range of regulators: the Charity Commission Ihe Fundraising Regulator the Gambling Commission Healthcare Inspectorate Wales (HIW) HMRC. The board of directors is legally responsible for financial probty. legal and regulatory compliance, and the CharIt￿S registration as a private voluntary tv)spital under the Independent Healthcare (Wales) Regulations 2011. The board, as the accountable body. govems Ty Hafan through its constitution. Ty Hafan's Articles of Associal￿n. Scheme of Governan￿ (including Standing Orders, Matters reserved for Board. and Scheme of DelegatK)n) and Statement of Purpose form the Charity's govemance framework for implementing the Charity's strategic objectives, monitoring progress. and managing the Charity's activities effectively. honestly, prudently, safely, transparently. and without personal gain. Trustee recrurfment and development A trustee ￿de of conduct ensures trustees continue lo act within their powers to deliver the Charity's objectives for the long-tenn benefit of the Charity's beneficiaries. They must exercise their duties, individually arKI collectively. according to the Charitls constitution and charity law. In line ￿th best practice arKI the Charity Governan￿ Code, the board continuously seeks to augment the diversity of its skillset through a continuous succession plan. Trustees are subject to a rigorous interview process. probationary period, due diligence checks and induction to ensure they become effective members of the board. working in the best interest of the Charity. Trustees play an engaged role, volunteering their time and support freely. They contribute the benefft of their professional expertise. and collaborate to protect and develop the Charity in a heavily regulated environment. Trustees may serve up to a maximum of six years arKI may be nominated for re-election at the end of Ihe first three-year term. The board and senior executives of TP Hafan are listed within the 'reference and administrative details. section of the accounts. Delegation Although specffic authority is delegated to the chaimian, committees and the chief executive. the board remains ultimately accountable for the Charity's affairs. financial probity. legal and regulatory compliance and registration as an independent hospital. The board sets the long-term goals for the Charity and the chief executive. who is responsible for operational activity, translates this into a strategy and business plan to be delivered by the executive team. The board overseas the management of the Charity and meets regularfy to receive rew)rts from its committees, executive directors and officers of the board. 22 Committees The board benefits from the support of four sts committees. with specific remits to scrutinise the management of the Charity's operations. Each committee comprises a chair. members selected by the nominations committee and commtttee chair. and executive directors, as advisors to the board. Standing committees include: Clinical governance committee, upholding excellence in clinical care by monrtoring the quality of safeguarding and care service delivery. Diredorate arvJ operations committee. which consi(lers operdkn'onal management and fundraising actmty Finance with govemance committee examines financial, fiducrary and investment issues. as well as the Charitys g0Veman￿ arrangements Remuneration committee reviews issues relating to staff financial compensation. and temis, conditions arKI beneffts. ¥An8￿.11clS11QA LLP The noTninations committee meets as required to ensure an effective board is in place to govem the Chanty with financial probity and transparency. This committee scrutinises the board's cornposition and perfonnance. ensures robust recruitment and succession planning. and that the board complies with the Charity's govemiThJ documents arxs policy framework. Pay structure The board ensures that there is a transparent process in pla￿ for the setting of salaries within the Charity to ensure fair and equitable pay. determined by affordability. ecorKJmiG indicators. and competitiveness. This is achieved by an annual revlew to benchmark every paid role within the Charity against comparable roles in similar organisations. Recommendations for proposing annual pay awards are considered by the remuneratron committee and. rf endorsed. require board approval. Remuneration for members of the executive team. including the chief executive. is considered separately, and agreed by Ihe board. In 2020121 there was no pay award due to the financial position of the Charty. Subsidiary companies As disclosed in note 16 to the financial statements. T9 Hafan owns two subsidiaries, Tg Hafan Trading Limited and Crackeriackpot Limited. which are independently govemed and gift surplus funds to the Charity. 23 Managing risk and uncertainti•s Bevan::Bucklp,pd LLP Tg Hafan conducts a broad range of activilies including the delivery of specia paediatric palliative care within a hospice environment. operating a r￿twork of retail shops, organising fundraising. marketing. and events activities. and conducting regulated gambling through the Charity's subsidiary. Crackeriackpot. The breadth of these activities requires a careful and systematic approach lo risk arKJ uncertainty to safeguard the Charitys people and resources %*thilst delivering on charitable objectives. We were unable to predict the massive impact that the global pandemic would have on the whole organisation, but we have been able to rely on robust risk management processes to ensure continuity of the highest standards of clinical and charity govemance. The trustees are confident that with careful planning and the continued generous support of our donors that we will continue lo deliver our objectives successfully and maintain our financial position. Ty Hafan's risk management framework. as part of our risk management policy, is central to Ty Hafan's Scheme of Govemance and is based upon the principles of BSI ISO 31000 and COSO Enterprise Risk Management framewoA(. The aim is to integrale the risk management policy in the Charitys business planning processes enabling trustees to comply wth the regulatory reqU1￿ment to publicly account for the effectiveness of the Charity's risk management processes. Process of risk management The corporate risk register is scnrtinised regularfy by the executive team and risk management group to ensure that adequate control measures are in place for each risk identified. Recommended actions are attached to each risk and a$s￿ned to an owner to reduce the likelihood of the risk occurring or miti'gate the consequences should it do so. The recommendatrons are examined by the relevant committees and passed forward to the board for approval at least on an annual basis. Prrncipal risks identffied for the Charity include.. the impact of COVID-19 economic uncertainty environmental challenges financial stsbility and safeguarding the Charity's assets infonnation govemance reputational risk safeguardir The board is satisfied that risk management is regularly assessed to ensure that actions and controls are effective and ensure that the Charity remains compliant and works to best practice in caring for children and their families. T9 Hafan is not aware of any principal uncertainties as at 31 March 2021, nor in the period before signing the annual report and accounts. 24 Ref•ren¢e and administrative details Bevan°°Buckland LLP Registered Company Number 3077406 Registered Charity Number 1047912 Registered Office Ty Hafan. Hayes Road. Sulty, CF64 5XX Auditors Bevan Buckland LLP. Swansea Principal Solicitors Hutchinson Thomas, Swansea Principal Bankers HSBC Plc, Cardiff. Barclays Bank. Cardiff Inveslrnent fvlanagers Brewn t>olphin Investment Managers The board The trustees, who are also company directors. served the Charitable Company during the period were as follo￿ts. Martin Davies Chaiman of the board from 24 August 2017. appointed as a trustee 11 December 2014 Deputy chair of the board Appointed 26 Ma￿h 2020. appointed as a Irustee 20 April 2017 Appointed 3 May 2018 Appoinied g April 2020 Appointed 29 May 2019 Appointed 29 May 2019 Appointed 9 December 2019 Appointed 19 De￿rnber 2018, resigned 30 March 2021 Aptx)inted 9 December 2019, resigned 21 May 2021 Dr Keith Holgale Dr Huw Jenkins James Pepper Elizabeth Thomas Sian Thomas Sue Carter Gareth Morgan Richard Adams CO￿pted member James Pepper from 29 May 2019 to 9 April 2020 when appointed as a trustee Chief Executive and Company Secretary Maria Timon Samra Chief executive from 11 May 2020 Rob Jones. Chief Executive. resigned 13 July 2020 Rob Jones Company Secretary from 29 November 2018 to 16 June 2020 Executive Team Deborah Ho Jason Foster Julian Hall Director of Care from 16 March 2020 Director of Finance Director of Fundraising and Marketing from 29 July 2019 to 4 September 2020 Director of Income Generation from 12 October 2020 Phae Jonés 25 Trustees, responsibilities in relatlon to the fin ial stateme Yevan::luFklanq..¥LP The trustees (who are also the directors of Ty Hafan for the purposes o company are responsible for preparing the trustees. annual report and financial statements in accordance applicable law and United Kingdom accounting standards (United Kingdom Accepted Accounting Practice). Company law requires the charity truslees to prepare financial statements for each year, which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources. including the income and expenditure. of the charitable company for that period. In preparing the financial ststernents, the tfustees are required to: select suitable accounting p)licies and then apply them consistentty observe Ihe methods and principles in the Charities SORPS make judgements and accounting eslimates that are reasonable and prudent state whether applicable UK accounling standards have been followed. subject to any material departures disclosed and explained in the financial statements prepare the financial statements on the going concem basis unless it is inappropriate to presume that the charitable company will continue to operate. The trustees are responsible for keepTng adequate accounting records that disclose, with reasonable accuracy at any time. the financial position of the charitable company and to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company, and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. In so far as the trustees are aware: there is no relevant aLNYit infonnation (as defined by Section 418 of the Companies Act 2006). of whbch the charitable company's auditor is unaware; and the trustees have taken all Steps that they ought to have taken.to make them aware of any relevant audit inforniation and to establish that the auditor is aware of that information. The trustees are responsible for the maintenance and inlegrity of the corporate and financial infonnation included on the charitable company's website. Legislation in the United Kingdom goveming the preparation and disseminats'on of financial stalements may differ from legislation in other jurisdictions. Auditors The auditors. Bevan Buckland LLP, will be proposed for reapwintment at the forthcoming general meeting. Approval This report was approved by the ttustees as members of the charitable company on 7 December 2021 and was signed on their behalf by OIJ Martin Davies. Trustee and Chainnan of the Board Date. !.).[i42oLI 26 Independent audltorfs rnport to the members Bev8NYfftok4and LLP Oplnlon We have audited Ihe financial slatemenls of Ty Hafan (the 'parent charitable company,) and its subsidiaries {Ihe group.) for the year ended 31 March 2021 which comprises the consolidated slatement of financial activities, the Consolidated and Parent Charitable Company balance sheets. the Group statement of cash flows and notes to the financial statements. including a summary of significant accounting policies. The financial reporting frafflev￿Tk 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 Ihe group's and of the parent charitable companls affairs as at 31 March 2021 and of the group's profit for the year then ended have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice have been prepared in accordan￿ with the requirements of the Companies Act 2006. Basis for opinion We conducted our audit in accordan￿ with Intemational Standards on Auditing (UK) (ISAS (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditorfs responsibilities for the audit of the finanoal 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 ststements in the UK, including the FRC'S Ethical Standard. and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have oblained is sufficient arvj appropriate to provide a basis for our opinion. Conclusions relating to going concern In auditing the financial statements, we have concluded that the trustees. use of Ihe going concem basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have perfonned, we have not identified any material uncertainties relating to events or cormditions thal individually or collectively, may cast significant doubt on the group's and the parent charitable company's ability to continue as a going concem for a period of at least twelve months from when the financial statements are authorized for issue. Our responsibilities and the responsibilities of the trustees with respect to going concem are described in the relevant sections of this report. 27 Other infomiation Bevan::Buckland LLP The trustees are responsible for the other inf0m￿tion. The other infomiation comprises the information included in the annual report. other than the financial statements and our auditorfs report thereon. Our opinion on the financial statements does not cx)ver the other infomation and. except to the extent otherwise explicitly slated in our report. we do not express any fomi of assurance conclusion thereon. In connection with our audit of the financial ststements, our responsibilrty is to read the other infomialion and. in doing so. consider whether the other infonnation is materially inconsistent with the financial statements or our knowledge obtained in the audit or otheNise appears to be materially misstated. If we identrfy such material inconsistencies or apparent material misstatements, we are required to detemiine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If. based on the work we have perfomed. we conclude that there is a material misstatement of this other inf0m￿tiOn, we are required to report that fact. We have nothing to report in this regard. Opinions ¢)n ¢)th•r matter5 presCri￿d by the Compani•s Act 2006 In our opinion. based on the work undertaken in the course of Ihe audit: the infomiation given in the Report of Ihe Trustees for the financial year for which the financial statements are prepared is consistent with the financial statements and the Report of the Trustees has been prepared in accordance with applicable legal requirements. Matters on which we arn rnquirèd to rnport by •xc•ptlon In the light of the knowledge and urKJerstanding of the group and the parent charitable company and its environment obtained in the course of the audit, we have not identffied material misstatements in the Report of the Trustees. We have nothing to report in respect of the following matters in relation to wthich the Companies Act 2006 requires us to report to you rf, in our opinM)n.' adequate accounting records have not been kept by the parenl charitable company, or retums adequate for our audit have not been received from branches not visited by us. or the parent charitable r￿MpanY financial statements are nol in agreement with the accounting records and retums, or certain disclosures of trustees, remuneration Specif￿ by law are rK)t made. or we have not received all the information and explanations we require for our audit. Responsibilities of trustees As explained rn0￿ fully in the statement of Trustees responsibilities. the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the p￿paratIOn of the financial statements and for being sakn'sfied that they give a true and fair view, and for such internal control as the trustees detemine Is necessary to enable the prepardtion of financial stalements that are free from material misstatement, whether due to fraud or errDr. 28 In preparing the financial statements. the trustee group's and the parent charttable companrfs abil" disclosing. as applicable. matters related to going concem and using the going concem basis of accounting unless the trustees erther intend to liquidate the group or the parent charitable company or to cease operations. or have no realistic aliemative bul to do so. PE%llLlgpd LLP Our responsibilities for the audit of the financial statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditorfs report that includes our opinion. Reasonable assurance is a high level of assuran￿. but is nol a guarantee that an audit conducted in accordance with ISAS (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to Influen￿ the economic decisions of users taken on the basis of these financial statements. We design procedures in line with our responsibilities outlined above, to detect rnaterial misstatements in respect of irregularities. including fraud. The extent to which our procedures are capable of detecting irregularities. including fraud is detailed below: Extent to whlch the audit was considered capable of detecting irregularities. including fraud We identify and assess the risks of material misstalement of the Financial Statements, whelher due to fraud or error. and then, design and perform audit procedures responsive to those risks. including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion. We discussed our audit independence complying with the Revised Ethical Star)dard 2019 with the engagement team members whilst planning the audit and continually monitored our irK1ependen￿ throughout the process. Identifying and assessing potential risks related to irregularities In identifying and assessing risks of material misstatement in respect of irregularities, including fr8LxI and rK)rKompliance with laws and regulalions, our procedures included the following: enquiring of managemenl. including obtaining and reviewing supporting documentation, conceming the Group's and parent charitable ￿MpanY'S policies arKI procedures relating to. identifying. evaluating. and complying with lay￿ and regulations and whether they were aware of any instances of norFcompliance deteding and responding to the risks of fraud and whether Ihey have knowledge of any actual. suspected or alleged fraud Internal controls established to mitigate risks related to fraud or r￿n-cOMpliance with laws arrtl regulations Discussing among the ervJagement team how and where fraud might occur in the Financial Statements and any potential indicators of fraLwJ. As part of this discussion, we identified p)tential for fraud in the following areas. 29 Obtaining an understanding of the legal and regul Parent Charitable company operates in. focusing had a direct effect on Ihe Financial Statements or that had a fundamentsl effect on the operations of Ihe Group and Parent Charitable Company. the key laws and regulations we considered in this context indLKled the UK Companies Act and relevant tax legislab'on. framewo that Group luckland,tLP Audit response to risks identified In addition to the above. our procedures to respond to risks identffied included the following- reviewing the financial statement disclosures and testing to supporting documentation to assess Complian￿ with relevant laws and regulations enquiring of management conceming actual and potential litigation and claims: performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud reading minutes of meetings of those charged with governance and revièwing correspondence with HMRC in add￿Ssing the risk of fraud through management override of ￿ntrolS, testing the appropriateness of joumal entries and other adjustments assessing whether the judgements made in making accounting estimates are indicative of a potential bias evaluating the business rationale of any significant transactions that are unusual or outside the nomal course of business. We also communicated relevant identffied laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non- compliance with laws and regulations throughout the audit. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website al ww.frc.or .uklauditorsres nsibilities. This description fornis part of our Report of the Independent Auditors. Uso of our report This report is made solely to the company's members. as a body. in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members Ihose rnatters we are required to stale to them in an auditorfs report and for no other purpose. To the fullest extent permttted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body. for our audit work, for this report, or for opinions we have fomied. Alison Vickers (Senior Statutory Auditor) For and on behalf of Bevan Buckland LLP, Statutory Auditor Grourmd Floor Cardigan House Castle Court Swansea Enterprise Park Swansea SA7 9LA 30 Ty Hafan Consolidated Statement of Financial Activitie (Incorporating the Consolidated Income arKI Expenditure Account) for the ear ended 31 March 2021 Fevan::Buckland LLP Unr¢stricttd Restrict*d Totsl Funth 1•21 T4yal Funds 2020 F￿ndS Funds Income fron Donations and Legxles Charitable Actfvltles . ￿VI￿On ofcare Other TradlnK Activitses In￿￿7)•￿ts oth¢r Incon 5.081000 432.200 6.114210 3,304634 519,164 1270.547 143,079 499370 4,385.681 324.694 1270,S47 243,•79 Totsl Income 280 9 157070 8,506.379 Expendlturt on: . Trading Actyybties Total Income net oftrathnl expeThdltsrn 3 115442 3•15 442 3,665.971 4.840.4 5 7•1348 432 180 1 141 618 ExpÈndl¢ur* w: istng Funds - lrtve5Dnent Managew*nt Net incom* a¥•il*ble ft•r Chari¢alA• A(thitles •2l501 922,501 1.070.616 73.P)9 4717•6S 43 5 141345 3.695.993 Cth4rhbl* Artiyiti Provision of Care 4453 152 451991$ 4,582,302 9,392,688 Totsl Expefftdltuye 0 527 72• N¢t in¢•m* bef•re VIn￿(lo$s¢s) in¥es¢mettts 263*13 305 437 629 350 886,309 Nff pinsl(h)ss¢s) on iAv¢sfmtyvs I1•3.2•9 Il93,ZlJg Net income l {Expenditure) 365 437 S59 1.998.670 Grtsss transfers bEty￿en fLm 22 597,7IS (597.7bS) Net movemerf In fvnds 3.054W7 1232.3281 1821559 (1.998,670) R¢con¢lll*tloth of Funds Funds hlances brou￿ forvArd 14,71•JM 15,195.•77 17.894.647 17135 251 l•J 215 1871•$36 15.895.977 The ¢onSor￿led statemenr offman¢41 aaivir*s inchth5 al gav￿ Al￿ losse5 r￿o￿lSed in the ye¥. 31 T9 Hafan Group and Charity Balance Sheet At 31 March 2021 Bevan::Buckland LLP 2021 2020 No Group Charlty Graup Chariry Fixed assets Tawble Assets Investments 15 6.198.015 6.191.015 11540.467 18 738482 5.788.945 10.664.014 5,78Q945 10,674,015 16 18728481 1&452.959 16.462.960 Currént assets Stotk 17 16.302 1,208.746 249.S41 1474 $89 33.016 655.478 368.677 12.700 697.435 115.853 Debtors 18 .195.818 152973 Cash ac bank l J48791 1.057.171 825.988 Cyrrert liabilities Creditors: Amounts fallbng due ￿thin one year 19 409 171 935.528 740.499 N•t turrent assets 605 418 583.239 121.643 85.489 Provisions for liabilr¢i¢s and charges 20 (615J63) (61 S.363) {678.62S) (67&6251 Net Assets 18.718.536 18.706.358 15.895.977 15.869.824 Funds Rescricted 883.285 17 lJ5.2S1 18 718.$36 883,285 17813 07J .115,613 14.780,364 115,613 Unrestricted 14,754.211 18.706,358 15.895,977 15,869,824 The financial ststements were approved by Ihe 8oard of Directors on . and were signed on its behaff by: Martin Davies - Trustee and Chair of the Board Registered Company Number. 3077406 Ty Hafan Group Statement of Cash Flows for the year ended 31 March 2021 Bevan::Buckland LLP 2021 2020 N•t (a%h provlded by {uJed ln) oprthz act6v1th5 24 J15.31S 549.163 Cash IIow5 from In¥estin8 Xtlvltlu: Interest received 53 703 Payments to ufipbte r￿ed assas Investment F*)rtlolio man>ymert fees Transfer of o5h hEld from invesunertts (1,004J5T) 69.712 s•0 o•0 1480.4091 73.799 300.OLXI IOS.90 Net ea5h provlded by {used Sn) InYestln8 actlvld 434521 in cash and cash equivalents in the rtportlng peri￿1 (11?.134) (455,Q7•) Cash and cash equinlents at the bw"nD¥¥ of the year 3bL677 1.023.747 Cash and cash ewNaknts ar the end oftl* rear Analysis of cash and equtvalents 31 March 2021 31 Mwch 2020 Cash at bank and in hand 249.541 368,677 Total and cash equivalents 249,541 368,677 Analysis of ¢h¥n8t5 in net debt 31 March 2020 Cash flow 31 March 2021 Cash 368.677 19,136 249.541 rotal 368.677 119.136 249,541 33 Tg Hafan Notes to the Financial SLthments Bevan°:Buckland LLP for the year ended 31 March 2021 ACCOUNTING POLICIES Basls of preparatlon The financial statements of the Charitable Company, which is a public benefrt entity under FRS 102. have been prepared in accordance with the Charities SORP (FRS 102). 'Accounting and Reporting by charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Slandard applicable in the UK and Republic of Ireland (FRS 102), Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland. and the Companies Act 2CM)6. The financial statements have been prepared under the historical cost convention or transaction value unless otherwise stated in the relevant accounting policy note(s). The Charitable COmpan￿S functronal and presentational currency is the pound sterling (£). and balances are rourmled to the nearest £1. Preparation of the accounts on a going concern basls At the time of approving the accounts, the Trustees have a reasonable expectation that the Charity, and the Group, have adequate resources to continue in operational existence for the foreseeable future. The Trustees have reviewed the resenies policy which supports the bng-temi business plan of the Charity. Thus, the trustees continue to adopt the going concem basis of accounting in preparing the aco)unts. Basis of consolidation The group financial statements o)nsolidate those of Ty Hafan and its subsidiary undertakings. Ty Hafan Trading Limited and Crackeiiackpot Limited {see rM)te 16>, made up to 31 March 2021. on a line by line basis. The consolidated entity is known as the 'Group'. Accounting policies specific lo the Charitsble Company or group in total are laid out bek)w. No separate cnmpany Stalement of Financial Activrties (SOFA) has been prepared for the Charitable Company as pemiitted by Section 408 of the Companies Act 2006. Incomlng resources Income is recognised when the Charitable Company has entrtlement to the funds, any perforrnan￿ conditions attached to the item(s) of income have been met, it is probable that the income will be received and the amount can be measure reliably. It is derived from the activities outlined below. Donations and similar incoming resources are recognised wthen they are ￿Ceived. Where refundable income is received in resped of a specified event or project. the income is deferred until Comp￿tion of that event or project. Pecuniary and residuary legacies are recognised on a case by case basis following the granting of probate arKJ when the adrninistratorlexecLrtor for the estate has communicated in writing the amount and of the legacy. In the event that the legacy is in the fomi of an asset other than cash or a financial asset traded on a recognised stock exchange. recognition is sutyect to the value for the legacy being reliably measurable with a degree of reasonable accuracy and the titi Charilable Company. Reversionary legacies are the original beneficiary under the will. An eskn'male of the total number and value of all open legacy cases which do not meet the above conditions. but to which the Charitable Company may be entilled.is. disclosed within the noles to the accounts. ILP Donated goods capitslised as tangible fixed assels are included as 'lncome from t>onations and Legacies. at.their-mafketyalue-atlhe time ofTeceipt. Gift Aid receivable is induded in in￿)Me when there is a valid declaration from the donor. Grants (including govemment grants) which are received to fund specific purposes are recognised as restricted incoming resources in the year in which the Charitable Company is entitled to the funds. Revenue grants are credited as inix)ming resources vthen they are receivable. provided corKlitions for receipt have been complied with. During the year the following Cov1￿19 govemment support was re￿iVed (as per note 2).. Job Retention Scheme Hospi￿ Emergency Funding Retail business grants Total 710.256 1,584.869 .737 500 3 032 625 There are no unfulfilled conditions attached to the alM)ve grants re￿iVed Fees receivable from Welsh Local Healih Boards in respect of respite care are recognised on receipt. The value of the goods donated for sale in the shops operated by the Charitable 'Company is recognised at the point of sale unless it is practicable for th'e goods to be measured at fair value on receipt. For these items the value is recognised as stock on the balance sheet and the released to the income ststement when the item is sold. The income for the weekly membership lottery is recognised when it is received except for money received in advance of the draw to which it relates, whid) is treated as deferred income. Investment income comprises bank deposit interest and dividends and interest arising from discretionary investment activities. Investment income arising from discretionary investment activities is re-invested by the Investment Managers. Expenditur• Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following headings: Costs of raisiro furKls." includes the direct costs of operats'ng the Charttable Company's shops. membership lottery arrfj appeals office logether with an apportionment of head office costs to reflect the support provrded to the fundraising operat40r4s. The dI[￿t￿ostS￿lf-OPeraknngjhe Ch￿Itable £onyany.'s shops do nol include any valuation of donated goods sold. 35 Costs of charitable activities., includes the d. together with an apportionment of head office these activities. costs o ratin rese Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred. Allocation of support and governance costs Support costs are those functions that assist the work of the Charitable Company but do not directly undertake charitsble actmties. Support costs have been allocated between governance costs and other support costs. Govemance (x)sts comprise all costs involving the public accountability of the Charitable Company and its compliance with regulation and good practice. These costs include costs related to statutory audit and legal fees together with an apportionment of overhead and support costs. The bases on which supw)rt costs have been allocaled are set out in note 8. Taxation The charitable members of the group are exempt from income arNJ corporation taxes on income and gains to the extent that they are applied for their charttable objects. The trading subsidiaries do not generally pay UK Corporation Tax because their policy is to pay tsxable profits to the Charitable Company as grft aid. Tangible fixed assets All tangible fixed assets are induded at cost less accumulated depreciation. Items of a capital nature costing less than £1.000 are not capitalised. There are no heritage assets. At present there are no circumstances existing to suggest that an impaimient review of the carrying value of fixed assets is required. This position is reviewed on an annual basis. Any impairment is recognised in the year in which rt occurs. Depreciation Depreciation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful aconornic lrfe of that asset as follows: Hospice development and equipment Freehold Land & Building Shops and office equiprnent Computer equipment Fixtures and fittings Molor Vehicles 5%. 100/0 and 20% on cost 2% on cost 20% on cost 33 /0 on cost 200A on cost 25°/o reducing balan Assets under construction are carried at cost arKI are nol depreciated until they come into use. Investments Assets held for investment purposes are valued at fair value (their market value) at the balance sheel date. ex￿pt for investments in trading subsidiaries. which are held at cost, as the truslees believe that the market value of the trading subsidiary is not .materially different to its cost. Realised gains and losses on investments are calculated as the difference.between sales proceeds of these inveslments and their rna￿et value at the slart of the year, or their subsequent costs, and are charged or credi activities in the period of disw)sal. BÈvan:*eitkkind°LLP Unrealised gains and losses represent the movement in market values during the year and are credited or charged to the ststement of financial activities based on the market value at the year-end. Investments in Subsidiaries Investment in subsidiary enttties are held at (X)St less impaimient. Debtors Debtors are recognised at the settlement amount due after any discount offered. Prepayments are valued at the amounl prepaid [￿t of any discounts due. Stocks Stocks represent purchased stock items onty and are stated at the bwer of cost and estimated net realisable value. Where necessary. provision is made for obsolete. slow moving and defective stocks. Stock does not include goods donated for sale in the Group's charity shops unless it is p.racticable for the goods to be measured at fair value on receipt. Cash at bank and in hand Cash at bank and in hand includes cash and short-lerm highly liqu￿ investrnents wsth a short maturity of th'ree months of less from the dale of acquisition or opening of the deposit or similar accounl. Creditors and provlsions Creditors and provisions are recognised where the Charitable Company has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Financial instruments The Charitable Company only has financial assets arKJ financial liabilities of a kiryj that qualfy as basic financial instNments. Basic financial inslruments are initially recognised at transaction value and subsequently measured at their settlemenl value. Fund accounting policy Unrestricted funds are those which are available for use at the discretion of the Board of Directors in furtherance of the general objectives of the Charitable Company arKI which have not been designated for other pufj)oses. Restricted funds are furKls which are to be used in accordance wrth specific restrictions imposed by donors or which have been raised by the Charitable Company for particutar purposes. The costs of raising and adrninislrating such funds are charged against the specific fund. The aim and use of each restricted fvnd is set out in the notes of the financial statements. Designated funds are unrestricted funds of the Charitable Company, which the trustees have decided at their discretion to set aside to use for a specific purp)se. 37 Operating lease agreements Rentals applicable to operating leases where subBoYWg ownership remain with Ihe lessor are charged to the sL3tement of financial activities on a straight-line basis over the period of the lease. c&lafidkLlfP Pension costs Contributions in respect of defined contribution pension scheffles are charged to the slatement of financial activities in the pericKI in which they are payable. The Charitable Company also participates in the NHS Pension Scheme. a defined benefft pension scheme. but it is unable to identify its share of the underlying assets and liabilities. The pension wsts charged against net incoming r&8ources are the COntribu￿nS payable to the scheme in respect of the accounting period. Critical accounting estimates and assumptions The Charitable Company makes estimates arKJ assumptions conceming the future. The resulting accounting estimates will by. definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing material adjustment to.the carrying amunts of assets and liabilities within the next year are addressed below: (l) Useful economic lives of taThJible assets The annual depreciation charge for.tangible assets is sensitive to changes in the estimate useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amerKJed when necessary to reflect current estimate. based on technological advancefnent, futu￿ investments, economic utilisation and the physical condition of the assets. see note 15 for the carrying amount of each class of asset held. and above for the useful economic lives for each class of assets. (11) Impairment of debtors The Charitable Company makes estimales of the recoverable value of debtors. Vthen assessing the impairment of debtors. management consider factors including the current credit rating of the debtor. the ageing profile of debtors and historic experience. See note 18 for Ihe net carying amount of debtors and assoaaled impairment provision. (111) Provisions Provision is made for the dilapidation on leasehold premises. These provisions require management's best estimate of the costs that will be incurred based on. legislative and contractual requirements. (See r￿te 20). (IV) Income recognition of legacies Residuary legacies have been recognised using 8 case by case basis when the amount receivable can be measured accurately following written confimiath)n from ihe estate executorladministrator. Management have accwèd for a percentage of the legacy pipeline which is consistent with experience over the last four years. 38 TP Hafan Bevan':Buckland LLP Notes to the Financial Statements - contlnued for the year ended 31 March 2021 INCOME FROM DONATIONS AND LEGACIES Unrestritted Restritted Total Fufids Funds Funds 2021 Total Funds 2020 Donations. appeals and similar income 1.517.211 432.280 1,949.491 2.502.799 Lèrdcies 1.131104 1.131164 803,83S Cowd Fundin¥ 3 031625 3.03 625 5 082 000 431280 6 114.280 3.30&634 In accordan￿ with the Chariue5 SORP (FRS102} the Charitable Company accounts for leDcies a5 receivable when conditions for entitlement have been mer and ree•pt of the income can be measured iccuratefy. An externil notification ser¥ice 15 used to notsfy the Cl4rioble Company of bequests and a system of monitoring ensurts that the lÉgacy is trackèd until receipL At the yearwend the Charioble Company had 36 P02tr. 27) open leKaq cases v*thsth had not met all ol the above condition& Should indicaty¥e amounrs be received in respett of these legacie5 the Charity could benefit from a further £S61,169 (2020 £478.430) in the fLbtLw& In apPI￿r4 the r4uTrremÈnts ol the ChaTitiÈ5 SOAP (FRS 102) in measuring incom* when it can be accuratety measured. an of £1 5.300 (2020: £92,632) has been induded in the aCCo￿tS for le%aty b8que5S INCOME FROM CHARITABLE AcfiviTIES Unrestricted Restricted Tot*1 Funds Fund5 Furbd5 2021 Total Fund5 2020 Local Heakh Authoritie5 480.176 416.176 443,913 Public ￿ndIng 988 45.4S7 529.164 SZg.164 489.370 INCOME FROM OTHER TRADING ACTIVITIES Unrestrirt¢d Funds Restrirted Funds Total Furrf5 2021 Total Funds 2020 Rètail attiviriès 611881 61L861 2,484.694 Member5hlp lottery 1.657,666 1.900.987 1270 547 1270,547 4.385.681 39 Tg Hafan Notes to the Financial Statements - continued for the year ended 31 March 2021 Bevan°°Buckland LLP INVESTMENf AND OTHER INCOME Total Funds 2021 Total Funds 2020 Funds Funds Listed in¥escment Income 243.026 243,026 53 323.991 Interest Rec￿ed SJ 703 243 079 243,079 324,694 EXPENDITURE ON RAISING FUNDS Unrnstri¢ted Restrirted Totsl 2021 Total 2020 Donatti>n% appeals. legaci*s and siNMiar Income 92lSQ I 92lSOI 1.070,616 Membership Lottwy 1.1)09.442 1.009.442 1,125,207 69.782 69.782 73.799 Re￿1 Expenditure 006 000 1540,764 4 007 725 4 007 725 4.810,386 EXPENDITURE ON CHARITABLE ACTIVITES Unrnstrild Equi&ffiwt Total Cost At I W"12020 Addiuons 7.520.45 1.164.506 438M4 106.898 •.230.731 45.489 134 I,Q04,357 Reva￿a￿On$ Oisposals 42&826 436 272 At 31 March 2021 7.917.606 1.109.995 564J24 I￿898 9 791823 D¢pr*¢latio At l April 2020 Charze the year Re441ua¢ions 1061873 t.￿.154 290.274 83.492 3.441.713 201051 59M 77J78 5052 345,361 Dtspos* 186.346 116346 At 31 Marth 2021 107&578 1.065.034 367A52 89.344 3 6•• 808 Net Book Value 196 472 At 31 March 2011J 5 457.577 l S*J52 23.4•6 5.711.945 16. FIXED ASSET INVESTMENTS Total fixed asset investrnents comprise: 2021 2020 Group Group Charity In¢orests in $ub5idiary undertakings 10.001 10.001 Market ￿41￿e of othw r￿ed asset investmw 530.466 10.664.014 10,6(A,014 11530.466 S40,467 10.664.014 10.674.015 45 TP Hafan Notes to the Financial Statements- continued Bevan Buckland LLP for the year ended 31 March 2021 00 FIXED ASSET INVESTMEPfft (CONTINUED) Interests In group undertakings At 31 March 2021, the Charitable Company held 100% of the allotted ordinary share capitsl of the following subsidiaries: Country of Cla55 of Incorporation Share Capital Held Company Natstr• of Capital and Result for Number Buslness Reserves tht Financial Year T*"HaFan Trading Limited England & Wa￿$ 05129825 Tra¢Jiryg 11182 (13,976) Crackeriackpx England & Limited w￿e$ Ordinary I￿1671 IQL Operations Other fixed asset investments were held as follows: 2021 Group and Charsty 2020 Gro￿ and Charity Listed Irbv•stments Market Ydlue at l April Addityons 10.664.014 11.826.182 9.46l878 {9,123.889) 34.254 193.209 I,S97,397 Di5pos&Is (1.925.041) 2n.837 RE￿Ul￿on Market ￿￿e at 31 M￿h 10,664.014 Cash included in w¢al 680.814 648.100 His¢oriul c¢)st 11.$54.921 9.937.105 The market value at 31 March 2021 comprises a sum of £12.459.404 managed by Brewin Dolphin (2020.. £5.053.379 managed by Barclays PIC and £5,548,756 managed by Rathbones). Also included in the market value are £71.062 (2020: £61,879) of shares which were bequeathed to the Charity taking the investment portfolio to £12.$30.466 at the balance sheet date. Ty Hafan Notes to the Financial Statements - continue for the year ended 31 March 2021 Fevan::Buckland LLP Income generated totalling £243.026 (2020: £323,991) VRS invested after deduction of management charges of £69.782 (2020: £73.799). The investments are unrestricted. During the year there were £500.000 (2020: £300.000> withdrawals from the investment portfolio to fund capital and other programrne expenditure. The portfolio includes £6,630,922 (2020: £6.986,553) invested in UK investments arKI £5,899.544 (2020: . £3.677.461) invested in overseas investments. 17. STOCKS 2021 2020 Group Charity Growj Charity Retail goods held for safe 16J02 33.016 11700 18. DEBTOR5 2021 2020 Group Group Ch￿ty Trade Dehor5 755.495 755.495 34.373 28.373 PrepaYm￿tt ar0 a¢¢rued in¢4)me 364.046 347.598 514,774 509.960 Due from subsKIHry ￿der￿￿"n 4.120 51771 Eftwoyee btrefi¢ 377 377 922 922 VAT recoverable 18.228 105.409 105.409 1,208.746 1,195.818 655.478 697.435 Debtors are slated after provisions for impaiment of £Nil (2020: £Nil). 47 Ty Hafan Notes to the Financial Statements- continued Bevan Buckland LLP OD co for the year ended 31 March 2021 I?. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 2021 2020 Group Charity Group Charfty TTrde creditors 219.125 211.203 345.788 333.925 Owed to sub*diary urthrtaki 81.282 5.842 security and other taxes 140.907 131.900 155.962 143.627 Accruals 204.$70 191490 166.267 155.829 Dderred income 304 569 267.511 101.276 765 552 935,528 740,499 Tg Hafan Notes to the Finan¢ial Statements - cont5nu• for th• year ended 31 March 2021 evan°°Buckland LLP CREDITORS: DEFERRED INCOME Deferred income consists of income re￿iVed in respect of future draws of the group's weekly membership lottery. arnj grants to be utilised in future periods. 2021 2020 Group Charity C￿OuP Charity As at l April 267.511 101.276 273.158 106,199 Amounts released to irKomtng resources (166.2J5) 1174,6731 (7,7141 Amounts dèferred in the year 203 293 47.001 169.026 1791 Asa¢31 Marth 304.569 148,277 267,511 101 270 20. PROVISIONS FOR LIABILITIES AND CHARGES 2021 2020 Group Group Charity A5 at l April Additions 678.625 120.977 678,62S 120.977 646.570 181742 150.68 646.570 181742 Charled dwir¢ the year As ac 31 March 150,68 615.303 615.J63 678.625 678.62S The nature of the Charrtable CompanYs activities requires it to enter into lease agreements for various items of equipment. property and vehides. The provision relates to management's best estimate of costs in respect of such items beyond fair wear and tear for which the Charitable Company is liable under the tems of each agreement. 49 Tg Hafan Notes to the Financial Statements- continued.Bevan"Buckland LLP for the year ended 31 March 2021 21. PENSION SCHEMES The Charitable Company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the Charitable Company to the scheme and amounted to £232.863 (2020: £254.093). There were no outstatmling or prepaid coiilributions at either the beginning or erKI of the financial year. The Charitable Company also contributes to the NHS Pension scheme, whose fund is held independently of the Charitable Company. The scheme is an unfunded defined benefit scheme but the Charitable Company is unable to identify its share of the underlying assets and liabilities. Employer contribution rdtes are reviewed every four years following a scheme valuation carried out by the. govemment actuary. On the advice of actuary, the contributions may be varied from time to titrie to reflect changes in the scheme"s liabilities. The last formal aetuarial valuation undertaken for the NHS Pension Scheme was completed as at 31 March 2016 (published in February 2019). The primary purpose of the formal actuarial valuations is to set eniployer and employee contribution rates from April 2019. The Department of Health and S¢xial Care have recently laid Scheme Regulations confimiing that the employer contribution rate will increase to 20.6.10 of pensionable. pay from this date. CoMpl￿10n of the 2020 valuation is expected from HMT in summer 2021, and the results of the 2020 valuaknon and the employer cost cap will be reported in the 2021- 22 NHS Pension Scheme accounts. The contributions to this NHS scheme in the year were £88,282 (2020: £88,282) The Charitable Company has made no employer contributions into employee personal pension schemes. 50 Ty Hafan Notes to the Financial Statements - contlnued for the year ended 31 March 2021 Bevan°°Buckland LLP 21 MOVEMENT IN FUNDS - GROUP Unreallsed 84ln on Inve5tmeAts Bal*nce at l Apr 202Q Incomlng Outyoing Balance at jl Mar2021 Unreitrlcted fihbds General fvnds 9.760.9SO n4.7Y> 310.4% 1193.209 9118 183 Desiqll*ted FuTrd5 C¥¢ ih Commwrty Fixed Assets 51827 4.593.730 (20AO4 32,220 s,395,￿1 2.130.000 115.000 11261 Flanned Oekrts 113&1 Hosplce STaff Costs Transitton 12&( 247J57 5.019.414 Q60 1938.261 7 *37 068 Rwtrirt•d funds 8uilding H05pice EquiFffien¢ H05pice Stsff Costs H05wce service Usqrs Hospice R¢lurbishment Hospi¢¢ IT Gardm Work5 fvolect Care in Community 436,154 Is.( (8.11 44J,037 60.949 163.913 51339 9.390 (740) 134.775) {14M9 76.240 5240 427.692 325,110 (589.6481 163,154 (3 (i.ryx)) 3&061 4312 66A43 597.765 883.285 15.895.977 9.157.070 527.no 2.193,209 11718S36 Included within above general funds are funds of the subsidiaries amounts to £12,182 (2020: £26.158) all of which are unrestricled. 51 Tg Hafan Notes to the Flnanclal Statements- continued Bevan"'Buckland LLP for the year ended 31 March 2021 MOVEMENT IN FUNDS- GROUP (CONTINUEO) General Funds: General funds are available for use al the trustees, discretion in furtherance of the objectives of the Charitable Company. Included in general funds is the revaluation gain of investments to market value of £2.193.209 {2020: revaluation loss of £1.112,361). Fund Tr•nsfÈrL" During the year £597.765 was transferred from restricted funds lo unrestricted funds. The Hospice Refijrbishment restricted fijnds are restricted in nature as the funds are for use specifically for the refurbishment project. on￿ the monies are spent. and all conditions met. the donationslgrants are held for a general arKI not a restricted purpose. During the year £589,648 has been iransferred to unrestricted funds following the satisfaction of all corKlitions surrouThaing the sperKI. Restrkted FundL' The Big Lottery provided funds towards an extension to the hospice in 2015 arKI equipment. This fund is charged with the depreciation arising thereon. Welsh Government provided funding towards the purchase of the hospice freehold land. This land was purchased in 2010 and has been caprtalised in the finan￿al statements. During the year we were also kindty donated funds towards the refurbishment of the hospice, staffing for play and music therapy and lowards solar panels for the hospi￿. Designated Fun¢h: Included in the Unrestricted Funds are 3 donations received that have been designated for specific future expenditure. a total of £125,000 has been ring fenced for hospice staff costs, £32,220 for prowding care in the communty and a legacy donation of £247.857 which will be spent on resources lo help the transttion between child and adult sepiices. There is also an allowance for the funds invested in the hospice and office building of £5,754.978 and a provision of £2,136.000 to cover planned deficits for the 2021122 and 2022123 financial years. 52 Ty Hafan Notes to the Financial Statements - continue for the year ended 31 March 2021 evan::Buckland LLP 23. ANALYSIS OF NET ASSETS BETWEEN FUND5 GROUP N•t Fixed assets Provision Unrestrkted funds 5.754.978 IZ090.218 605.418 {615.363) 17,835,251 Restrirted funds 443.037 440.248 8•3.285 Total ￿ndS 6 198.015 11530 466 605.418 615 363 18.718 536 CHARITY Net current Fixed assets Investments Oiabilities) Provision Total Unrestrl¢t¢d funds 5.754.978 1111)0.219 583.239 {615.3631 17,823,073 Restrirted funds 443,037 440.248 883.285 Total funds 6 198.015 I I540 467 615363 53 Bevan°:Buckland LLP Ty Hafan Notes to the Flnanclal Statements - continued for the year ended 31 March 2021 24. RECONCILIATION OF INCOMEI(EXPENDITURE) TO NET CASH FLOWS FROM OPERATING ACTIVITIES 2021 2020 rplus l {Defi(itl of income over expeThli¢ure {Gainsl l Losses ￿ investments Nrf inwment income and bank interest payable D•preoavon Disposals l Rev4luatron Movem Detrèase in stock 1•22.559 (2.193,209) (1.998,670) 1.111361 16 (243.079) 345.361 249,926 16.714 1324.694) 346,972 72,296 15 17 1,828 185,385 23,304 trKrease in debrors 18 (5$3.268) (66,J57) Decrease in creditors Movem•nt in pro*sion lor liabilities arKI charges 19 20 32.055 315385 549,163 25. CAPITAL COMMITMENTS As at 31 March 2021. the Charity had capital Commitments totalling £313.790 {2020: £761,321) for the hospice refurbishment which commenced in January 2020. 26. OPERATING LEASE COMMITMENTS As at 31 March 2021, the group had annual commTirnents urKler non-cancellable operating lease arrangement as follows: 2021 2020 Gr￿P Company Gro C¢)nwany Land and Buildings L¢a5es expiring within one year Leases expiring within 2 to 5 years Leases expring withift greater than 5 years 243.341 243.341 33&258 336.258 425.583 886,875 7&5 1.390.958 425.583 8￿875 7&5fy) 1.390.958 579.599 579.599 Other Op•rating sts Èxpiring within one year Lèases È¥piring within 2 to 5 years Lease5 expiring wthin greater than S years 11216 4.430 11216 4.430 29,524 47,312 29.524 47.312 1&646 16.646 76.836 76.836 Bevan::Buckland LLP T* Hafan Not•s to the Financlal Statements - continued for the year •nded 31 March 2021 27. LEGAL CHARGE The Charitable Company has entered into a covenant with the New Opwrtunities Fund to discharge all monies and liabilities which shall from time lo time be due as set out in the granl contract. As part of the agreernenl to award the Charitable Company a grant to fund the building of the new Hospice extension as continuirHJ security for the payment and discharge of the liabilities. the New Opportunities Fund have been granted a first legal mortgage over the land and premises at Sully. Penarth. which has a net book value of £5.839.028 {2020'. £5.457.577). and the Charitable Company assigns to the fund by way of first fixed equitable charge each and all of the insurance and all future easements and other rights at any lime vested in or conferred on the Charitable Company in connection with or otherwise for the benefft of the property. 28. CONTINGENT LIABILITY Sale of Land As part of the agreemenl to purchase the freehold of the land on ￿lch the hospice is built an overage agreement applies to future development which is payable to the previous freeholder. The restriction is in place until 2035. It is not wssible at this time to quantify any contingenl liabiSty arisirKJ. 29. MEMBERS. LIABILITY The Charitable Company is a private company limited by guarantee and o)nsequently has no share capital. Each of Ihe members is liable to contribute an amount not exceeding £1 towards the assets of the Charitable Company in event of liquidation. 30. RELATED PARTY DISCLOSURES The Charitable Company is exempt from disclosing Iransactions with its subsidiaries under the provisions of FRS 102. as the subsidiaries are 1000/0 controlled by the Charitable Company. 31. INDEMNITY INSURANCE The group has tsken out Charity and Charity Trustees Indemnity Insurance at a cost of £498 (2020: £498). 55