2023-03-31-accounts

Annual report and financial statements For the year ended 31 March 2023

Ty Hafan - the hospice for children in Wales www.tyhafan.org Registered Charity No. 1047912 Company No. 3077 406

Contents Trustees, statement Chairman's introduction Chief executive's statement Ty Hafan - being there Key facts Public benefrt, vision, purpose, and strategic objectives Fundraising People (employees and volunteers) Financial review Structure, govemance and management Managing risks and uncertainty Reference and administrative details Trustees, responsibilities in relation to the financial statements Independent auditorfs report Consolidated statement of financial activities

Trustees. Statement The trustees confimi that their annual report and the accounts of the Charity and its subsidiaries for the year ending 31 March 2023, have been prepared in accordance wrth: the Companies Act 2006 the Charities Act 2011 Ty Hafan's Articles of Association the Accounting and Reporting by Charities". Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102).

Chairnian's introductlon As we approach our twenty-fifth anniversary, the need for Ty Hafan's services becomes more and more apparent. We are seeing increased life expectancy for children with complex conditions and the demand on paediatric palliative care is growing. Ty Hafan has adapted our services lo ensure we can care and support children with life- shortening conditions and their families when and where they need us. Ty Hafan's trustees remain mindful of our role in leading the Charity to deliver on our vision and purpose, to understand how best we develop our services to meet the needs of our children and their families, and how to approach the future in the ever-changing health and social care landscape. We have seen how the shadow cast by the pandemic continued to impact our work in a multitude of ways.. nursing staff had to endure working in PPE, the difficulties in recruiting nursing staff was exacerbated, and fundraising activities continued to be negatively impacted. However, we also witnessed care staff determined to deliver the care and support that was desperately needed., we saw innovation in the service provision, and we were impressed by the novel and focused activity of our fundraising teams. As a charity we remain bold, determined and steadfast in support of our beneficiaries. We do not stand still. Ty Hafan is also fortunate to enjoy the continued support of generous supporters and fundraisers who enable us to deliver our services around the clock and free of charge at a time when generating income is becoming increasingly difficult. We sincerely thank each and every one of you. Our thanks also extends to the army of volunteers who dedicate their time to a wide array of activities including fundraising, working in shops and hospice care services. We simply could not provide our service without you. Our ongoing commitment to deliver care and support was highlighted this year by the refurbishment of our hospice "den" area, which focuses on the needs of adolescents, and the increased provision of "play and stay" hubs in communities across Wales. allowing parents the priceless opportunity to spend time with their peers and access family support servI￿s. Ty Hafan is uniquely placed to provide care and support for children with life-shortening conditions and their families in Wales. It is a privilege for trustees to lead the Charity and humbling to hear families describe the Charity as their'lifeline" We look fomard wtth an immense degree of pride to commemorating our landmark anniversary in 2024. The drive and insatiable determination to be there for all the families in Wales that need us, whether that is in the hospice, in hospitals, in the home, or in the community, will continue to guide us. As ever, on behalf of the board, our heartfelt gratitude is extended to our dedicated staff, volunteers, supporters and donors. While many people contribute to running our organisation, Ty Hafan undoubtedly belongs to the children we constantly strive to support. Martin Davies Chairman

Chief executive's statemant l am pleased to report that 2022123 was another productive year at Ty Hafan. notwithstanding the many challenges thrown up by the cosl-of-living crisis and resourcing pressures in the wake of the pandemic. A positive legacy of COVID-19 was a marked increase in our offering of child and family wellbeing services {initially virtually and, when permitted, in person) across south and west Wales. Seeing the benefit of this, and to address the increasing complexity involved in care serVI￿S provision at the hospice, upon the resignation of our incumbent director of care, our trustees approved a new senior leadership structure involving a dual directorate focused on hospi￿ and community services respectively.. Director of nursing and clinical services role, supported by introducing a deputy director role focused on Clinical governance and service improvement. Director of family wellbeing and outreach services, recognising the increasingly vital partnership role we play in the health and social care ecosystem in Wales. Every day these professionals {two of vthorn are 8Xtemal appointments and one internal) collaborate to ensure that our care services are delivered safely. and children and families remain at the heart of all we do, A key priority has been filling registered nurse vacancies. As with other care services providers in Wales, we have experienced post-pandemic tumover in an environment where qualified resources are in short supply. To complemenl our hospice provision, where it has become increasingly challenging to keep up with increasing demand and complexity, we continued to invest in expanding our community provision. Our stay and play hubs, through which we bring our hospice to children and families in the community, received national recognition for innovation and have since become a key feature of our services, which are free at the p)int of access. We also introduced a youth social action and participation project, funded by Children in Need, which is vital to give voice to older children and young people accessing our services. In April we wel￿rned back a fomer colleague in the capacty of director of income generation. bringing stability and focus to this team and driving our highest levels of income since before the pandemic. Our retail team also delivered increased levels of contribution from a ￿dUCed portfolio of 18 shops (2019.. 25 shops). A number of new roles were introduced to support efficiencies across the Charity. Our fantastic volunteers {c.500 in number) continued to play a vital part in ensuring we could be there for the children and families, whether in our retail shops, in the hospice. supporting our head office teams, supporting with fundraising activities or maintaining the lovely gardens at our beautiful coastal hospice site. We were also delighted to host our all-staff conference on-site, our first in-person engagement with all colleagues since before the pandemic. Throughout the year we delivered a number of strategic business plan projects. For example. our marketing and communications team led a consultative project with internal and extemal stakeholders to refresh our brand, our vision and our purpose (articulated within the 'Public benefit, vision, purpose, and strategic objectives, section of this report). Our focus on colleagues, our key asset, was manifold. Building on our l Hospice UK.. Exam les of Innovation

new vision and purpose, we launched a multi-year cultural change project, engaging colleagues from across the Charity in activities to redefine our values and to inform a team-based behavioural competency framework. To support retention in the post­ pandemic era, we trialled hybrid working in our offices, for which feedback was overwhelmingly positive. We were also delighted to promote a number of internal candidates to key roles; delivered leadership and management development programmes and continued to implement initiatives to support colleague wellbeing. A 'care pathways' project and additional professional development programmes were introduced in care, both to ensure learnings from clinical incidents and to support colleagues in delivering safe care in an increasingly acute context.

From a public affairs perspective, we continued to engage with ministers and officials in local and Welsh Government to raise awareness about how we complement the statutory health and care ecosystem, and why our services matter to some of Wales most vulnerable children. Our 'Lifeline Fund' campaign, jointly delivered with Hope House/Ty Gobaith in North Wales, resulted in an uplift of £461 k in statutory funding from Phase 1 of the Palliative End of Life Care Board's review, but unfortunately no further funding, or inflationary uplift, was received in Phase 2. This leaves Wales' children's hospices firmly at the bottom of the league tables of UK children's hospices in terms of statutory funding and work is ongoing to inform Phase 3 of the review.

Across the Charity, funding of our ever-increasing care costs has been our primary focus throughout the year. Against the backdrop of intense cost pressures, particularly within salaries and utilities, and the resulting potential of falling donations, it felt like a perfect storm for the Charity heading into the 2022/23 financial year. Due to a combination of measures, including rigorous cost containment and diligent fundraising, highlights of which were our 'When life is short, time is precious' match-funding appeal, the successful return of our flagship 'Chefs Night Out' event, last held in 2019, and fantastic support from our corporate partners. I am pleased to report that we ended the year with a surplus of £276k (before investment losses) against a budgeted deficit of £1 .4m (revised at half year), and ahead of the previous year's £1.1 m deficit before £935k of Covid funding. Prior to investment losses and Covid funding, 2022/23 therefore represented our best results since 2017/18.

I am incredibly proud of, and grateful to, my colleagues and our volunteers for their commitment and dedication to our purpose. However, as ever, we could not have been there without the generous support of the public in Wales, which is particularly appreciated at a time when everyone was - and continues to be - faced with very difficult economic conditions. Through fundraising, challenges and events, playing the Crackerjackpot lottery, donating to, or buying goods from our retail shops, making regular donations or remembering the Charity in their wills, our supporters enabled us to continue to provide our services both in the hospice and across Wales. There is always more to do, and our fantastic corporate supporters, donors and grant funders have enabled us to innovate and invest in continuous improvement. 2023/24 will be a year of building back, as we invest in resources and projects to help us to establish sustainable income sources, and to place us in a strong position when economic conditions return to a more favourable and positive state.

Until then, on behalf of the children and families we support, all of whom face the ultimate unimaginable challenge, thank you for whatever part you played, or continue to play, and for considering us when you are choosing a charity to support. We look forward to our 25th anniversary next year, and to the next quarter of a century, with renewed resolve and commitment to being there for every child and family who needs us.

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Thank you for your support. We could not do what we do without you.

Maria Timon Samra Chief Executive

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Ty Hafan - belng there Ty Hafan offers specialist care and support for children and young people living with life- shortening conditions and their families in Wales. As the children and young people referred to our service are not expected to live beyond 18 years of age, we focus all we do on ensuring a short life is a full life. The care and support provided by Ty Hafan continues through bereavement and beyond. Put simply. we are always there. Ty Hafan's multi-disciplinary care services team includes a consultant. specialist nurses. therapists, family support and play professionals. They work in collaboration with GPS and medical experts to deliver child and family focused palliative care and support. Our service provides searnless support that flows across organisational and geographical boundaries. The Ty Hafan hospice in Sully offers a tranquil stay for families and features bespoke medical equipment, a specialist playground, sensory aids and a hydrotherapy pool. We also increasingly offer our services in the home and in the community. reflecting a greater focus on family wellbeing and outreach services. As the needs of children and families change over time, we re-shape our care and support striving to make it available for families when and wher8 It is needed most. Our care is always holistic, focusing on physical, emotional, social, and spiritual needs. As a charity we support children and young people with a diverse range of conditions which include severe cerebral palsy. cancer. neuro-muscular conditions and many rare genetic conditions. Some of the children we care for have been diagnosed at, or before birth, some in early childhood, whilst others receive no diagnosis and live with unpredictable health over an extended period with an uncertain prognosis. Wherever and however our services are provided, they are available completely free of charge to hildren and their families. Families live each day with the reality of knowing their child may die young. Our unique understanding of how this impacts every part of their life shapes the care we provide. In all cases. this is tailored and heartfelt, and designed to meet the individual needs of a child and family. This means that throughout our joumey with the child and their family we help them make the most of every moment, enabling them to focus on living whilst acknowledging dying. Such long periods of illness and extended uncertainty inevitably place a huge strain on family life, so our support is inclusive. encompassing the wider family including parents and siblings. When the time comes, our support continues after the dealh of a child, and we are there for bereaved families for as long as they need us. Quite simply, Ty Hafan provides support that would not be available to children with life- shortening conditions and their families in Wales from anywhere else. Care at Ty Hafan's hospice While we have prioritised residential care for children and families with the greatest need and for children at the very end of life, we continue to extend our hospice based play and therapy services to families on a day care and drop in basis throughout 2022123. Our newly refurbished 'Den', a bespoke area for adolescents, has provided both indoor and outdoor opportunities for young people to come together and access peer group support as well as emotional. practical and clinical advice.

Throughout 2022/23 the impact of the Covid-19 pandemic has continued to place significant challenges on the delivery of care services. Our nursing teams continued to work in PPE, in order to provide confidence to families still feeling anxious and uncertain. Staffing resource has also remained a challenge with the recruitment of skilled paediatric nurses being particularly problematic, resulting in the hospice only able to staff five of the available beds. This meant that a return to the provision of short break stays remained challenging. Often referred to as respite care, this is a vital lifeline for families, enabling them to step away from the 'round the clock' caring responsibilities, secure in the knowledge that trusted help and support is nearby. For some families this allows them time to focus on themselves or other siblings, perhaps to enjoy activities that are too difficult to arrange or participate in with a child who is dependent on help and support.

Care at or closer to home

An increased focus on family and wellbeing services is reflected in the expansion of the scope and diversity of services delivered at home or closer to home. Through talking with families, we have come to understand how shorter and more local interventions, delivered more frequently, can make a big difference.

The majority of children living with life-shortening conditions live their lives in their local communities. By extending our services into homes and communities, families can receive care and support in a more adaptable manner. Local services tend to be more accessible, causing less disruption to the family's daily routine, and assist the whole family to be involved.

Families can select from a range of services that includes in person visits at home or accessing services in community hubs and events across our geography, ranging from Chepstow to Caerphilly to Haverfordwest.

Our 'stay and play' hubs offer meaningful play and engaging activities for children closer to home. Staffed by our experienced play and therapies team they provide a time for enjoyment and diversion within an environment that encourages them to share experiences alongside other children. For parents, it is an opportunity to seek peer support, learn from one another, and exchange experiences. Moreover, it provides a dedicated period to focus on their own wellbeing, allowing access to complementary therapies and family support services.

Care in hospitals

The children we help receive care and support across various settings. We collaborate to ensure our services integrate with hospitals and organisations, to complement the services they offer.

When a child with a life-shortening condition is admitted to hospital, it usually means the child has become more unstable, or a sudden deterioration has occurred. Ty Hafan's services work with hospital-based care teams, enhancing the support and providing families a trusted and familiar point of contact at a time when life may feel out of control. In the final days and weeks, our teams will be alongside the family, exploring their wishes for end-of-life care, including arranging a transfer to the hospice if the child, young person or family prefers.

Fostering connections and strengthening self-support

Ty Hafan creates a feeling of community that ensures families feel more supported through shared experiences. Many of the families that we support live with the fact that their child's condition is so rare that few other families can understand what this feels

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like. One way of achieving this has been through a nelwork of 'closed' Facebook groups an online community of people leaming from each other, accessing information, and providing mutual support when things feel tough. This vital service is available for mums, dads. siblings, and our'squad, of older young people who no longer access TP Hafan's residential services but want to stay in touch with their friends. Emotlonal support around the clock Caring for a child with a life-shortening condition is exhausting for families who have little time to rest while fulfilling their role as parent carers with skill and expertise. Our skilled family support team, comprising of family support workers and family support practitioners, is available around the clock, every day of the year. They provide support in family homes, over the telephone, via video enabled technology, and through one-to- one sessions at the hospice and in local communities. When coping feels over whelming, they are often the team that identifies the need for additional support. Support for siblings The siblings of children with life-shortening conditions face unique challenges themselves. Ty Hafan offers specialist support that recognises the impact of this, the impact on their own childhood, a sense of isolation and loss. We help provide them with opportunities to understand and express their thoughts and feelings as well as develop mechanisms to help them cope and thrive. Sibling support is age appropriate and flexes to meet needs over a lifetime of support. Support is offered at the hospice and closer to home on a one to one basis as well as groups. We help these children enjoy their time with their parents and siblings, devote time to their own wellbeing, and cope with bereavement and beyond. Practical support Studies show that the families we meet are more likely to face financial difficulties and find it difficult to access additional support. The role of Tg Hafan in signposting and advocating for families in this context is crucial. We use our voice whenever and wherever it is needed to enable the challenges experienced by families to be better understood, and to help identify solutions to make these unfairly difficult lives a little easier. We have also established a hardship fund during 2022123 to provide financial support to families impacted by the cost-of-living crisis. Transitional care and support When a young person expected to die in childhood approaches their 18th birthday, there will be cause for celebration, but this is often accompanied by anxiety as they begin the transition from children's services to adult services. Some families describe this time as a 'cliff edge, as they move away from all that is familiar and need to fomi new relationships with adult services. Ty Hafan provides a range of individualised services to make this experience less daunting. A paediatric palliative care consultant and a specialist nurse work across organisational boundaries in collaboration with adult hospices and other specialist teams so that the young person and their family feel safe and supported. Recognising the need for young people to have social opportunities to engage with peers is another important focus for transition support. The leam facilitates a number of social events for these young people and for their parents who are also leaming to navigale new relationships with their adult children. Bereavement care Ty Hafan continues to provide support for families after bereavement. At this point our focus tums to supporting families with the unfamiliar experience of bereavement and with the immediate praclical decisions they need to make. This support is designed with the individual needs of families in mind, but also includes opportunities for families to 10

come together to remember their children through dedicated events and remembrance services. Bereavement is experienced uniquely, and we are here for families for as long as they need us. Families are always welcome back to the hospice, where children are remembered in memorial services and our memorial pebble garden.

Key facts Number of families supported: (including young people 18+): 344 Total family member beneficiaries.. 1,400 Number of bereaved families supported.. 268 Number of crisis respite nights provided: 1.168 Number of end-of-lrfe care and symptom management stays provided: 199 Number of community interventions.. 8,131 12

Public beneflt, vlslon, purpose and strategic objectives Having taken Charity Commission guidance into consideration, the board is confident that our Charity meets the public benefit requirements outlined the Charity Act 2011, and that our activities are consistent with our aims and objectives. We believe that the Charity's vision, rnission and strategic objectives enable us to meet the public benefit requirements by delivering a broad range of services free of charge to our b8naficiaries. Vlslon A Wales where every child with a lrfe-shortening condition lives a fulfilling life. supported with the compassion and specialist care they and their family need. Purposo No family should have to face the unimaginable loss of their child alone. With children and families at the heart of all we do, we provide free care and support in our hospice and in the community, offering a lifeline throughout the child's short life, at end of life, through bereavement and beyond. Strateglc objectives Ty Hafan's strategy has four core goals.. develop our services, expand the reach of the Charity, build resilien￿ within the organisation, and invest in our people. Across all of our goals we are committed to demonstrating openness and transparency. Objectives.. To support the identification of all children with lrfe-shortening conditions in Wales who may die in childhood and, in cooperation with others, offer them and their families, needs-assessed palliative care and support. To ensure best practice in the delivery of a range of unique. high quality and complementary bespoke care services to children and their families. To provide sustainable funding to support the provision of care. now and in the future. and ensure the effective and efficient use of resources. 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 attract, retain, engage, and nurture the best people to achieve the Charity's objectives. To demonstrate transparency and openness in all activities. 13

Fundraising The financial year 2022123 continued to be challenging for fundraising activities, but our amazing supporters continued to show how much they care about the children and families who need Ty Hafan's support, with incredible generosity. In 2022123 we received just 11 % of our funding from government sources. and raised Ihe remaining funds (£8.7 million) through voluntary fundraising activity. We are extremely grateful to all of our supporters who continued to show such generosity during another challenging year. The first half of the year remained challenging for fundraising events still being affected by the impact of the Coronavirus pandemic. However, fundraising events saw a revival in the second half of the year, with significant success through our Christmas concert at St David's Hall with Treorchy Male Choir and Callum Scott-Howells. 2022123 saw the retum of one of our flagship fundraising events, Chefs Night Out. This was the first time Ihe event had been held since 2019, as a result of the pandemic, and raised more than £240,000 taking the total raised from the event since its inception to over £1 million. We are extremely grateful to David Loosemore and Huw Edwards, whose dedication to this event has resulted in such a phenomenal amount being raised. We continued to see incredible fundraising efforts from the families we have supported, and in July 2022 a team of eight dads took on the 10nTaff Challenge, climbing the ten mountains in Wales followed by cycling the 52 mile Taff Trail from Brecon to Cardiff. all within 55 hours and raising over £40,000 in the process. Legacy donations from people who remember us with a gift in their will remained high in 2022123, following significant growth in the previous year. This remains a poignant and important source of funds for Ty Hafan, covering the cost of around 35 % of our care. Individual supporters continued to help us by making one-off gifts or giving monthly and this remains a crucial and stable part of our fundraising activities. For the first time, we ran a time-limited match funding appeal in November 2023, raising over £344,000 through the 60-hour appeal. Fundraising from businesses saw significant growth for Ty Hafan in 2022123, with significant donations and fundraising activities from a range of seclors. We continue to focus on building mutually beneficial relationships with businesses - their support is vital in helping us to deliver our mission, but we also aim to play a key role in helping businesses to meet their strategic objectives. too. Fundraising from community groups, organisations and institutions showed good signs of recovery in 2022123 and we received support from friends groups, schools, universities and community groups all across south Wales, as well as from individuals organising their own fundraising activities. Income from trusts and foundations saw significant growth in 2022-23, with greater focus on securing multi-year funding for key projects. Financial support from our donors was supported by Ty Hafan's commercial activities, which play an important role in enabling the Charity to retain diversified income sources. The Crackerjackpot lottery, wholly owned by Ty Hafan, generates a reliable and sustainable source of income for us. Ty Hafan's shops allow the Charity to reach across

Wales and both raise funds and increase awareness in the local communities that we serve of the services that we deliver. Fundraising practices Ty Hafan is registered with the Fundraising Regulator and is committed to the Fundraising Promise and adherence to the Fundraisiry Code of Practice. In the course of fundraising, we will inevitably come into contact with people who may be in vulnerable circumstances, including the families of the children we support. Our Ethical Fundraising Policy outlines our commitment to engage carefully and sensitively with vulnerable people. In 2022123 we did not pay third party professional fundraisers to generate funds, but did receive funds from local and national corporate partners who provided charitable contributions to us from the sale of their goods or services. For all of these partners. commercial participator agreements were in place. We are continually looking for ways to improve Ty Hafan's fundraising practices and ensure we maintain high standards for fundraising at all times. Listening to and leaming from complaints about fundraising is a crucial part of this process. In 2022123 we received one complaint directly related to our fundraising activities, and two related to retail, all of which were resolved. We were not subject to any complaint investigations through the Fundraising Regulator. We provide details of how to contact us, including our complainls policy and procedure on our website.

Our people The ability to provide our services relies on the extensive skills, expertise, and commitment of our people: employees and volunteers. Employees Ty Hafan employs over 190 staff with a broad range of skills experience to enable us both deliver care to our service users and fundraise for our income. Roles in the organisation range from nurse to shop manager, from lottery administrator to play therapist, community fundraiser to health care support worker. These clinical, health and social care specialists, fundraisers and retail professionals are supported in their work by a network of IT, HR. facilities, and finance specialists with the one aim of delivering the best possible care and support to children with life-shortening conditions and their families in Wales. To ensure that we meet this goal we continue to implement plans to attract, retain. engage, and nurture the best people to deliver the Charity's objectives. Alongside statutory care training and personal development training, this year we implemented new training and development programmes, including a management and development programme, to continue to enable employees to fulfil their potential. In 2022123, we also introduced our culture change project and engaged all staff in redefining our new values and infoming a culture change action plan. We also held our first onsite conference providing an opportunity for colleagues to come together in person after the pandemic. The post pandemic recruitment market, in addition to the national shortage of paediatric nurses, created workforce challenges across the Charity. However, despite this we welcomed new colleagues and promoted talented colleagues from within. We continued to develop our wellbeing support for colleagues and implemented a range of initiatives and mechanisms including support for the cost-of-living crisis, and women's health. Equality, diversity and inclusion Ty Hafan is committed to encouraging equality, diversity and inclusion among its workforce, and eliminating harassment, victimisation and unlawful discrimination. Our aim is to create a supportive and inclusive environment where all colleagues can reach their full polential. where respect and understanding is fostered, and the diversity of people's backgrounds and circumstances is positively recognised and valued. Voluntoers The dedication and hard work of our volunteers is essential in ensuring that Ty Hafan can deliver care and support our beneficiaries. Volunteer roles at the Charity are many and varied, each as meaningful and important as the next. They include providing play and therapies for the children. tending the extensive gardens at the hospice, assisting in our shops. providing specialist and administralive support, promoting awareness, and helping with fundraising activities. The wide variety of ways in which Ty Hafan has been supported by volunteers cannot be captured fully in this report. However, their work is invaluable in supporting children with life-shortening conditions and their families. 16

Flnancial roview and results for the year Results for the year ended 31 March 2023 are shown in the Consolidated Statement of Financial Activities on page 30. This shows the financial results for Ty Hafan and its trading subsidiaries, Ty Hafan Trading Limited and Crackeriackpot Limited, which both donate their profits to the Charity. Income Total income received in 2022123 was £9.722,442 (2021122 £8,741,164). This represents an 11010 increase from the previous year. Where we received our income £'OOO 1.112 19% 1,511 17% ,743 935 11% Gifts in Wil Retail Lottery 1.85() 21% Investment Income 1,809 21% 2,05? 21Y, LHB Funding Fundraising 613 1,116 7% 2J 2% Covid Funding 1.763 323 1,636 i /0/, 2022123- outer clrcle 2021122- Inner clrcle We saw gr0￿h in most areas of income generation which helped to compensate for the end of our Covid funding from the govemment (£935k received in 2021122>. In particular, our fundraising income increased by almost 50 % thanks to the tremendous support we received from our donors in the local community and corporate sector. Expenditure Total expenditure in 2022123 increased by £522,693 (+6 % ) to £9,446,725 (2021122 £8,924,032). The highest increase in spend was in the provision of care of £238,453 {+50/0) due to an uplift in services provided at the hospice and in the community and the impact of cost-of-living increase on our staff costs. 17

Fiv8 year expenditure on charitable activities 83% 82%> 8rA 81% 81% 2019 2020 2021 2022 2023 Pr¢)vision of Care {£ml +As % of costs eX(￿dIng tradin8 actNity Excluding our trading activity in retail and lottery, 81 pence of every pound of expenditure is spent on charitable activity. This is in line with our objective to ensure more of our donations are used directly on our beneficiaries. Cashflow Overall, in 2022123 there was a net cash inflow of £524,395, increasing the cash held to £1,309,343 as at 31 March 2023. There were no withdrawals from the 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 Charity and their potential impact on income and planned expenditure. The Charity has a responsibility to give confidence to its beneficiaries that we can provide our services even during limes of economic uncertainty. The board has established the level of reserves using the methodology outlined in the Charity Commission guidance and has considered the level of required reserves based on the assets used in the Charity and the risks to the Charity and likelihood of an event occurring. The reserves policy is reviewed and agreed each year by the board. The Charity's reserves are detailed in note 22 and 23 of the accounts. 18

At 31 March 2023, the Charity held £9,750,718 in unrestricted free reserves (2022.. £10,789,789). The reserves were broken down as follow: 3110312023 £18,796,758 £8,232,755 £813,285 £9 750,718 3110312022 £19,147,961 £7,480,427 £877,745 £10 789 789 Net Assets Less Desi nated ReSe￿aS Less Reslricled Reserves Unrestricted Free Reserves Unrestricted free reseNes have decreased by £1.039,071 1-10%) during the year. Designated reserves have been increased by £752.328 {+10 % ) and include an increased provision for future planned deficits and an allowants for major capital projects if no funding is available. Designated reserves also include the net book value of propety owned by TP Hafan. Going GonG8m The Charity's financial position and performance has been outlined in the financial review above. The board has assessed projected future income, expenditure and cash flows. and analysed the strength of the Charity's reserves, liquid assets and its ability lo withstand a material fall in income. Consideration has been given to the stability and diversity of various income streams in making this assessment and the challenges currently faced by the Charity due to the pandemic. The board has concluded that there is a reasonable expectation that TP Hafan and its trading subsidiaries. Ty Hafan Trading Limited and Crackeriackpot Limited, have adequate resources to continue activities for the foreseeable future. Therefore, they have continued to adopt the going concem basis in preparing the financial statements. Approach to financial investments Decisions about the investment strategy and policy are governed by the finance with govemance committee and approved by the board. The investment policy is reviewed annually by the board. Ty Hafan's investment portfolio is managed by investment managers according to the board's instructions. The investment strategy is fomially reviewed with our investment managers and finants with governance committee annually and more frequently when considered necessary. Ty Hafan's investment risk appetite for its investment portfolio is consistent with a strategy of seeking to preserve and generate longer term capital growth and income ahead of the rate of inflation in order to grow the free reserves of the Charity. Ty Hafan does not depend on investment retums to fund its short-terni operational requirements and is, therefore, able to tolerate short to medium term volatility of its investment portfolio. The total value of the investment portfolio as at 31 March 2023 was £12,476,891 (2022.. £12.837,993) representing an overall decrease in value for the year of £361,102 (-3 %. 2022.. +2 % ). During the year, there was no cash withdrawal from the portfolio {2022: £500.000}. The board recognises it has a responsibility to consider any ethical implications of its investments. This could lead to conflicting objectives between delivering the targeted returns and excluding certain investments that go against TP Hafan's ethos and purpose. 19

It is, therefore, Ty Hafan's policy to use a negative screening approach avoiding investment in companies or sectors undertaking a particular activily or operating in a way which may be harmful to Ty Hafan's interests. This is reviewed annually alongside the investment policy review. 20

Structure, governance and management Ty Hafan is a registered charitable company limtted by guarantee. which operates an independent hospital and runs a lottery. It is subject to company law. charity law, trust law and bound by legislation governing the safe delivery of healthcare. As a result of its activities. Ty Hafan is accountable to a range of regulators: the Charity Commission Healthcare Inspectorate Wales (HIW) the Fundraising Regulator the Gambling Commission Healthcare Inspectorate Wales (HIW) We're also registered with govemment departments e.g., HMRC, Companies House, local authority services and other bodies, e.g., ICO. usually govemed by self- assessment of compliance with regulations andlor filing annual retums. The board of directors is legally responsible for financial probity. legal and regulatory compliance, and the Charity's registration as a private voluntary hospital under the Independent Healthcare (Wales) Regulations 2011. The board. as the accountable body, governs Ty Hafan through its constitution. Ty Hafan's Articles of Association, Scheme of Govemance (including Standing Orders. Matters Reserved for Board, and Scheme of Delegation) and Statement of Purpose fomi the Charity's govemance frarnework for implementing the Charity's strategic objectives, monitoring progress, and managing the Charity's activtties effectively, honestly, prudently, safely. transparently, and without personal gain. Trustee recruitment and development A code of conduct ensures trustees continue to act within their designated authority to deliver the Charity's objectives for the long-term benefrt of the Charity's beneficiaries. They a￿ obligated to fulfil their duties, both individually and collectively, in alignment with the Charity's constitution and chartty law. In line with best practice and the Charity Govemance 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 lo 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 benefit of their professional expertise, arKI collaborate to protect and develop the Charity in a heavily regulated environment. Trustees are eligible to serve a maximum tenure of eight years and can be proposed for re-election upon completion of their initial four-year temi. The board and senior executives of Ty Hafan are outlined in the 'reference and administrative details, section of the accounts. Delegation Specific authority is delegated to the chairman, committees, and the chief executive, however, the board retains ultimate accountability for the Charity's operations, financial integrity, adherence to legal and regulatory standards, and its independent hospital registration. 21

Setting the Charity's long-term objectives. the board entrusts the chief executive, responsible for operational functions. wtth translating these goals into a strategic framework and a business plan to be executed by the executive team. The board oversees the Charity's managemenl and convenes regularly to receive reports from its committees, executive directors, and the board's officers. Committees The board benefits from the SUp￿rt of four standing committees, and various ad hoc committees, with specffic remits to scrutinise the management of the Charity's operations. Each committee comprises a chair and members selected by the nominations committee, and executive directors act as advisors to the board. The standing committees are.. Clinical governance committee, upholding excellence in clinical care by monitoring the quality of safeguarding and care service delivery. Finance with governance committee examines financial. fiduciary and investment matters, as well as the Charity's govemance arrangements. Directorate and operations committee, which considers operational management and fundraising activity. Remuneration committee reviews issu8s relating to staff financial compensation, and temis, conditions and benefits. The nominations committee convenes as n￿SSary to ensure the establishment of an efficient board responsible for goveming the Chartty with financial integrity and transparency. This committee scrutinises the composition and perfonnance of the board, oversees rigorous recruitment and succession strategies, and verifies the board's adherence to the Charity's governing documents and policy framework. Pay structure Ensuring fairness and equity in pay, the board maintains a transparent process for setting salaries within the Charity, considering affordability, economic indicators, and competitiveness. This involves an annual review that benchmarks each paid role within the Charity against similar positions in comparable organisations. Recommendations for annual pay awards are evaluated by the remuneration committee and, if endorsed, require approval from the board. Remuneration for the ex8CUtive team, including the chlef executive, is reviewed separately and approved by the board. Subsldiary compani•s As disclosed in note 16 to the financial statements, Tg Hafan owns subsidiaries, TQ Hafan Trading Limited and Crackeriackpot Limited, which are independently govemed and gift surplus funds to the Charity. 22

Managing risk and uncertalntles T9 Hafan undertakes a wide raroe of activities, which includes the provision of specialist paediatric palliative care within a hospice environment, operating a chain of retail shops, organising fundraising and marketing activity, and delivering mass participation events activities, as well as delivering regulated gambling through the Charity's subsidiary. Crackerjackpot. The extensive scope of these activities necessitates a comprehensive and methodical approach to risk and uncertainty to protect the Charity's people and resources while effectively achieving its charitable objectives. 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 framework. The aim is to integrate the risk management policy in the Charity's business planning processes enabling trustees to comply with the regulatory requirement to publicly account for the effectiveness of the Charity's risk management pro￿sses. Process of risk management The executive team and risk management group routinely scrutinise the corporate risk register to verify the p￿sence of adequate control measures for identified risk. Each risk is accompanied by recommended actions. designated to an owner with the aim of reducing the likelihood of its occurrence or mitigating its potential consequences. These recommendations undergo scrutiny by relevant committees and are subsequently presented to the t)oard for approval at least on a six-monthly basis. Risk mitigation measures are central to the Charity's business plan while addressing extemal factors such as economic, environmental and geopolitical crises. This involves continuous assessment and adoption of additional management controls while reinforcing the Charity's governance structure. Below are the primary strategic risks to delivering the business plan, each capable of adversely affecting the Charity's reputation- experienced across wider charitable sectors.. challenging economic conditions impacting financial resilience and sustainability inability to achieve contribution targets due to the cost-of-living crisis and poor fundraising perf0miancel￿source capacity staff shortages impacting the Charity's ability to continue providing charitable servI￿s. The board is satisfied that risk management is regularty assessed to ensure that actions and controls are effective and ensure that the Charily remains compliant and works to best practice in caring for children and their families. Ty Hafan is not aware of any principal un￿rtaintieS as at 31 March 2023, nor in the period before signing the annual report and accounts. 23

Reference and administrative details Registered Company Number Registered Charity Number Registered Office Auditors Principal Solicitors Principal Bankers Investment Managers 3077406 1047912 Ty Hafan, Hayes Road, Sully, CF64 5XX Bevan Buckland LLP, Swansea Hulchinson Thomas, Swansea HSBC Plc, Cardiff, Barclays Bank. Cardiff Brewin Dolphin Investment Managers The Board The following were appointed during the period or are currently registered as non- executive directors and trustees.. Martin Davies Dr Keith Holgate Susan Cooper John Hoskinson Dr Helen Matthews Mick McGuire James Pepper Matt Sinnott Sian Thomas Suzanne Carter Elizabeth Thomas Cathrine Grubb Dr Huw Jenkins ChainTtan of the board Deputy chair of the board Appointed 3 February 2023 Appointed 30 June 2022 Appointed 2 August 2023 Resigned 20 January 2023 Resigned 6 March 2023 Resigned 12 June 2023 Resigned 31 August 2023 Executive d7rectors The following were in post during the period: Maria Timon Samra Jason Foster Tracy Jones Jenna Lewis Sian Middleton John Mladenovic Zoe Tippins Chief executive Director of finance Director of family wellbeing and partnerships Director of income generation Director of nursing and clinical services Director of marketing & communications and lottery Director of people services 24

Trustees, responsibilities in relation to the financial statements The trustees (who are also the directors of Ty Hafan for the purposes of company law) are responsible for preparing the trustees, annual report and financial statements in accordance applicable law and United Kingdom aCc￿untIng standards (United Kingdom Accepted Accounting Practice). Company law requires the charity trustees 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 expendilure, of the charitable company for that period. In preparing the financial statements, the trustees are required to: select suitable accounting policies and then apply them consistently observe the methods and principles in the Charities SORPS make judgements and accounting estimates that are reasonable and prudent state whether applicable UK accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements 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 keeping adequate accounting records that disclose, with reasonable accuracy at any lime, 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 audit infomation (as defined by Section 418 of the Companies Act 2006), of which 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 information and to establish that the auditor is aware of that information. The trustees are responsible for the rna1ntenan￿ and integrity of the corporate and financial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. Auditors The auditors, Bevan Buckland LLP, will be proposed for reappointment at the forthcoming general meeting. Approval This report was approved by the trustees as members of the charitable company on 29 November 2023 and was signed on their behalf by: Martin Davies Trustee and Chalrnian of the Board Date 18 December 2023 25

Independent auditorfs report to the members and trustees of Ty Hafan Opinion We have audited the financial statements of Ty Hafan (the 'parent charitable company'l and its subsidiaries {'the group'l for the year ended 31 March 2023 which comprises the consolidated statement 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 framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion, the financial statements.. give a true and fair view of the state of the group's and of the parent charitable company's affairs as at 31 March 2023 and of the group's profit for the year then ended have been properfy prepared in accordance with United Kingdom Generally Accepted Accounting Practice have been prepared in accordance with the requirements of the Companies Act Basls for oplnlon We conducted our audit in accordance with International Standards on Auditing (UK) {ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC'S Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Concluslons relating to going concern In auditing the financial statements, we have concluded that the trustees, use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have perfomied, we have not identified any materlal uncertainties relating to events or conditions that 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 ￿e5ve months from when the financial statements are authorized for issue. Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report. 26

Other inforniation The trustees are responsible for the other information. The other infomiation comprises the infomiation included in the annual report, other than the financial statements and our auditorfs report thereon. Our opinion on the financial statements does not cover the other infomation and, except to the extent othewise explicitly stated in our report, we do not express any fomi of assuran￿ conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other infomiation and, in doing so, consider whether the other infomiation is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misststements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have perfonned. we conclude that there is a material misstatement of this other infonnation, we are required to report that fact. We have nothing to report in this regard. Opinions on oth•r matters prescribed by the Companies Act 2006 In our opinion, based on the work undertaken in the course of the audit: the infonnation given in the Report of the 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 are required to report by exceptlon In the light of the knowledge and understanding of the group and the parent charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Trustees. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion.. adequate accounting records have not been kept by the parent charitable company, or retums adequate for our audit have not been received from branches not visited by us, or the parent charitable company financial statements are not in agreement with the accounting records and returns. or certain disclosures of trustees, remuneration specified by law are not made, or we have not received all the information and explanations we require for our audit. Responsibilitigs of trustees As explained more 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 preparation of the financial statements and for being satisfied that they give a true and fair view, and for such intemal control as the trustees detemine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. 27

In preparing the financial statements, the trustees are responsible for assessing the Group's and the parent charitable company's ability to continue as a going concern, disclosing, as applicable, matters related lo going concern and using the going concem basis of accounting unless the trustees either intend to liquidate the group or the parent charitable company or to cease operations, or have no realistic alternative but to do so. Our responslbllltles for the audit of the flnanclal statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAS (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. We design procedures in line with our responsibilities outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: Extent to whlch the audlt was consldered capable of detecting Irregularltles. including fraud We identify and assess the risks of material misstatement of the Financial Statements, whether 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 Standard 2019 with the engagement team members whilst planning the audit and continually monitored our independence throughout the process. Identifying and assessing potential risk5 related to irregularities In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations. our procedures included the following- Enquiring of management, including obtaining and reviewing supporting documentation, conceming the Group's and parent charitable company's policies and procedures relating to: identifying, evaluating, and complying with laws and regulations and whether they were aware of any instances of non-compliance detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud Internal controls established lo mitigale risks related to fraud or non-compliance with laws and regulations Discussing among the engagement team how and where fraud might occur in the Financial Statements and any potential indicators of fraud. As part of this discussion. we identified potential for fraud in the following a￿as. 28

Obtaining an understanding of the legal and regulatory frameworks that the Group and parent charitable company operates in, focusing on those laws and regulations that had a direct effect on the Financial Statements or that had a fundamental effect on the operations of the Group and parent charitable company, the key laws and regulations we considered in this context included the UK Companies Act and relevant tax legislation.

Audit response to risks identified

In addition to the above, our procedures to respond to risks identified included the following:

• reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with relevant laws and regulations

• enquiring of management concerning 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 reviewing correspondence with HMRC

• in addressing the risk of fraud through management override of controls, testing the appropriateness of journal 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 normal course of business.

We also communicated relevant identified 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 at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors.

Use 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 those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Alison Vickers (Senior Statutory Auditor) For and on behalf of Bevan Buckland LLP, Statutory Auditor Ground Floor Cardigan House Castle Court Swansea Enterprise Park Swansea SA? 9LA Date: 18 December 2023

29

Ty Hafan Consolidated Statement of Flnanclal Activities {Incorporating the Consolidatod Income and Expenditure Account) for the year ended 31 Mar¢h 2023 Unrestrl¢¢•tl A￿trIct•d Total Funds Total Funds Funds Funds 2023 2022 No In¢om• from: Donatlons and Legacies Charl¢•bk A¢thTltles 438l330 4.594.12 4,301032 - Prov¢5￿￿ ol Care ,116,442 3,688,869 613,139 O¢hr Tradln8 A¢tlvltle5 Investments and other Incom 3.6BB,869 323,002 3.571.190 323,002 254,803 Total Income 9.510643 211 7•9 9 722,442 8.741,164 Exp¢ndltyr¢ on: . TradiD8 Act￿￿e5 Total Income n¢¢ f•f ¢r•dlng eJKptnditure 1940.120 940 120 1841034 4 570.523 0 782,312 5.899,130 Expendltur¢ •n: Raising Funds Investrnent Minigement Net Income avallable for Charitable Actlvltles 1.192.743 1,192,743 999,217 59,548 5 325 604 211 799 5.537.403 4.840,365 ChrS¢*ble A¢¢l¥ltl Provi510n of Care 4 993,544 5,261,686 5.023.233 Total Expendltur¢ 9 178S83 108 142 9 446 725 8.924.032 Net income b•forn plnsl{10s5es} on Inyestments 331.060 275.717 181868 Net Ilossesllgains on ifivesunen (626,920) {626,920) 611293 Net Income l (Exp•ndlture) 294,800 3SI 203 429.425 Gr055 transl•3 btheen funds 22 1,117 (a,IID Net movement In lundi P86.743 {64,4601 13S1,2031 429.425 Reconciliation of Funds Funds balances brought f¢rt¥ard 22 18,270,216 •77.745 19.147.961 18.718.536 Fund balances carrled forward 22 17 983.473 813 285 18 796,758 19.147.961 The consolNlated statement of financrdl actNitie5 includes all gaiD5 aDd1055es reCO￿￿ed in the year. All incomin£ rtsources and resources expended derrrfe from continuing ac￿1[1¢& 30

Ty Hafan Group and Charity Balance Sheet At 31 March 2023 2023 2022 Note Group Charity Group Charity Fixed assets Tangble Assets InvestrTient5 15 5.828.607 12 476.891 18305 498 5.828.607 12.486.892 18.315499 6.050,979 6,050,979 12,847,994 16 12,837,993 18,888,972 18,898,973 Current assets Stock 17 5,127 1.007,400 1.309.343 2.321.870 3,460 Debtors 18 1.153.283 965.260 2.118.543 840,541 1,167.132 Cash ai bank 784.948 266.984 1,628,949 1.434.116 Curront liabilities Creditors.. Amounts falling due within one year 19 .319.571 .138.517 867,654 694.760 Net curront asstts 1001299 980.026 761.295 739,356 Provisions for liabilities and charges 20 (511.039) (511.039) 1502.3061 1502,3061 Net Assets 18.796.758 18.784,486 19,147.961 19,136,023 Funds Restricted 22 813.285 17.983.473 813.285 17.971 201 877.745 877,745 Unrestricted 22 18.270.216 18,258.278 18 796758 18,784,486 19,147.961 19,136,023 The f1nancial statemenls were approved by the Board of Directors on 29 November 2023 and were signed on its behalf by.. Martin Davies Trustee and Chairman of the Board Registered Company Number.. 3077406 31

Tg Hafan Group Statement of Cash Flows for the oar ended 31 March 2023 2023 2022 Note Net cash pro¥ld¢d by (used In) operatlng artlvltles 24 735 191 680.792 Cash fbowg from In¥•stln8 actl¥ltles: Deposir Infere$t receNed Paymenrs to acquire tangible fixed asse 25 (210.803) 1645.4101 soo.000 Transfer of Cash held from investmen Net cash provlded by (used In) investing acthitles 210796 145.385 Chan8• In <ash and ¢ash ¢4uh7•ltnts IA th¢ rep•rtltt8 perlod 524.3*5 535.407 Qsh ahd Cash equTr3￿nts at the bewnniTr¥ of the year 784.941 249541 Cash and cath equ￿a￿nts a¢ the end of the year 1 309,343 784 948 Analysls of cash and cash equivalents 31 Mwrh 2023 31 Marth 2022 Cash a¢ bank and in hand 1309 343 784.948 Total cash and cash equivalents 1309 343 784.948 Analysis of Changes in net debt J l March 2022 Cash flow 31 March 2023 784,948 524,395 1 309.343 Total 784,948 524.395 1 309 343 32

Tg Hafan Notes to the Financial Statements - contlnuod for the year ended 31 March 2023 ACCOUNTING POLICIES Basis of preparatlon The financial statements of the Charitable Company. which is a public benefit entity undar FRS 102. have been prepared in accordance with the Charities SORP (FRS 1021 'Accounling and Reporting by charities.. Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 102), Financial Reporting Slandard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland, and the Companies Act 2006. Th8 financial slalements have been prepared under the historical cost convention or transaction value unless otherwise stated in the relevant accounting policy note(sl. The Charitable Company's functional and presentational currency is the pound sterling 1£), and balances are rounded to the nearest £1. Preparatlon of the accounts on a going concern basis At the lime of approving the accounts, the Trustees have a reasonable expectation that thè Charity, and the Group, have adequate resources lo continue in operational existence for the foreseeable future. The Trustees have reviewed the reserves policy which supports thè long- term business plan of the Charity. Thus, the trustees continue to adopt the going conc8m basis of accounting in preparing the accounts. Basls of consolidation The group financial statements consolidate those ofTy Hafan and its subsidiary undertakings. Ty Hafan Trading Limiled and Crackeriackpot Limited {see note 161, made up to 31 March 2023, on a line by line basis. Th8 consolidated entity is known as the 'Group'. Accounting polioes specific to the Charitable Company or group in total are laid out below. No separate company Statement of Financial Activities {SOFA) has been prepared for the Charitable Company as permitted by Section 408 of the Companies Act 2006. Incomlng resources Income is r8cognised wh8n the Chantable Company has entitlement to th8 funds. any perfomiance conditions attached to Ihe item(s) of income have been met, it is probable that th8 income will be recèived and Ihe amount ¢an be measure reliably. It is derived from the activities oullined below. Donations and similar incoming resources are recognised when Ihey are received. Where refundable income is received in respect of a specified event or project, the income is deferred until Completion of that evenl or project. 33

Ty Hafan Notes to the Flnancial Statement8 - continued for the year ended 31 March 2023 ACCOUNTING POLICIES (continued) Pecuniary and residuary legacies are recognised on a case by case basis following the granting of probate and when the administratorlexe¢ulor for the estatè has communicated in writing the amount and of the legacy. In the event that the legacy is in th8 form of an asset other than cash or a financial asset traded on a recognised stock exchang8, r8cognition is subject to the value for the legacy being reliably measurabl8 with a degree of reasonable accuracy and th8 titl8 to the asset being transferred to the Charitable Company. Reversionary legacies are not recognised during the lifetime of the original beneficiary under the will. An estimate 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 entitled is disclosed within the notes to the accounts. Donated goods capilalised as tangible fixed assets are included as 'lncome from Donations and Legacies, at their market value at the time of receipt. Gift Aid receivable is included in income when there is a valid dèclaration from the donor. Grants (including government grants) which are re￿iVed to fund specific purposes are recogni58d as restricted incoming resources in the year in which the Charitable Company is entitled to the funds. Revenue grants are credited as incoming resources when they are receivable, provided conditions for receipt hav8 baen complied wilh. There ar8 no unfulfilled conditions attached to th8 above grants received. Fees receivable from Welsh Local Health Boards in respect of respite care are recognised on receipt. The value ofthe goods donated for sale in the shops operated by the Charitable Company is ¢ognised at the point of sale unless it is practicable for Ihe goods to be measured al fair value on r8ceipl. For these items the value is recognised as stock on the balance sheet and the re18ased lo the income slatemenl when the item is sold. The income for the weekly membership lottery is recognised when il is re￿Ived except for mon8y received in advance of the draw to which it relates, which is treated as deferred income. Investment income comprises bank deposit interest and dividends and interest arising from discretionary investment aclivilies. Investment income arising from disGretionary investment activities is re-invested by the Investment Managers. 34

TP Hafan Notes to the Flnanclal Statèments - continued for the year endod 31 March 2023 ACCOUNTING POLICIES {continu•d) Expènditurè Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party. il is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classTfied under the following headings.. Costs of raising funds: includes the direct costs of operating the Charitable Company s shops, membership lottery and appeals office together with an apportionrnenl of head office costs to reflect the support provided to the fundraising operations, The direct costs of operating the Charitable Company's shops do not include any valuation of donated goods sold. Costs of charitable activities.. includes the direcl costs of operating care serwces together with an apportionment of head office costs lo reflect th8 SUPPOrt provided to these activities. Irrecoverable VAT is Gharged as a cost against the activity for which the expenditure was inGurred. Allocation of support and governance costs Support costs are th05e functions that assist the work of the Charitable Company bul do not directly undertake charitsble activities. Support costs have been allocated betsveen govemance costs and other support costs. Govemance costs comprise all costs involving the public accountability of the Charitable Company and ils compliance with regulation and good practice. Th8Sa Costs include costs related lo statutory audit and legal fees together with an apportionmènt of overhead and support costs. The bases on which support costs have been allocated are sel out in note 8. Taxatlon The charitable members of the group are exempt from income and corporation taxes on income and gains to the extent that they are applied for their charilable objeGls. The trading subsidiaries do not generally pay UK Corporation Tax because their policy is to pay taxable profits lo the Charitable Company as gift aid. Tangible fixed assets All tangible fixed assets are included at cost less accumulated depreciation. Items of a capital nature costing less than £1,000 are not capilalised. There are no heritage assets. At present Ihere are no circumstances existing to suggest that an impairrnent review of the carrying value of fixed assets is required. This position is reviewed on an annual basis. Any impaimient is recognised in the year in which it occurs. 35

Tg Hafan Notes to the Financlal Stalements- contlnued for the year ended 31 March 2023 ACCOUNTING POLICIES (continutd) D8proclation Depreciation is calculated so as to write off the cost of an asset. less its estimated residual value, over the useful eGonomic life of that asset as follows= Hospice development and equipment Freehold Land & Building Shops and office equipment Computer 8quipment Fixlures and fittings Motor Vehicles 5%. 10% and 20Yo on cost 2% on cost 20% on cost 33¢/0 on cosl 204A on cost 25% reducing balance Ass81s und8r construclion are Garried al Cost and ar8 not d8pr8ciated until they come into use. Investments Assets held for investment purposes are valued at fair value (their market value) al the balance sh8et dale, except for investments in trading subsidiaries. which are held at cost, as Ihe trustees 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 investments and their market value at the start of the year, or their subsequent costs, and are charged or credited to the slalemenl of the financial aGtivities in the period of disposal. Unrealised gains and losses represent the movement in market values during the year and are credited or charged to the statement of financial activities based on th8 mark8t value at the year-end. Investments in Subsidiaries Investrnent in subsidiary entities are held at Cost less impaim8nt. Debtors Debtors arè r8cognised at the settlement amount due after any discount offered. Prepayments are valued at the amount prepaid net of any discounts due. Stocks Stocks represent purchased slock items only and are stated at the lower of cost and estimated net realisab18 valu8. 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 practicable for the goods to b8 measured al fair value on rec8iPt. 36

Ty Hafan Notes to tho Flnanclal Statements- continued for the year ended 31 March 2023 ACCOUNTING POLICIES (Cofitlnu￿) Cash at bank and In hand Cash at bank and in hand includes cash and short-term highly liquid investments wilh a short maturity of three months of less from the date of acquisition or opening of Ihe deposit or similar account. Creditors and provlsions Creditors and provisions are recognised where the Charitable Company has a present obligation resulting from a past event thal will probably result in the transfer of funds to a third party and the amount due lo settle the obligation ¢an be measured or estimated reliably. Financial Instruments The Charitable Company only has financial ass8ts and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value. Fund a¢¢ounting policy Unrestricted funds arg those which are available for use at the discretion of the Board of Directors in furtherance of the general objectives of the Charitable Company and which have not bèen designated for other purposes. Restricted funds are funds which are to be used in accordance with sp8cific restrictions imposed by donors or which have been raised by the Charitable Company for particular purposes. The costs of raising and administrating such funds are charged against the specific fund. The aim and use of each restrictèd fund is set out in the notes of the financial statements. Designated funds are unrèstrictèd funds of the Charitable Company, which the trustees have decided at thair discretion to set aside to use for a specific purpose. Operatlng lease agreèments Rentals applicable lo operating leases where substants'ally all of the benefits and risks of ownership remain with th8 lessor are charged lo the statement of financial activities on a straight-lin8 basis over th8 P8ri0d of the lease. Penslon costs Contributions in respect of defined contribution pension schemes are charged to thè stal8m8nl of financial activities in the period in which they are payable. The Charitable Company also participales in the NHS Pension Scheme, a defined benefit pension scheme, but it is unable to identify its share of the underlying assets and liabilities. The pension costs charged against net incoming resources are the contributions payable to the sch8m8 in respect of the accounting period. 37

Tg Hafan Notes lo the Financial Statements - continued for the year ended 31 March 2023 ACCOUNTING POLICIES (continuÈd) Critical accounting ostimates and assumptions The Charitable Company makes estimates and assumptions concerning the future. The resulting accounting estimates will by definition, seldom equal the related actual results. The estimates and assumptions that have a signif1cant risk of causing material adjustment to the carrying amounts of assets and liabilities within the next year are addressed below-. 11) Useful economic lives of tangible assets The annual depreciation charge for tangible assets is sensitive to changes in the estimate useful economic lives and residual valu8s of Ihe assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimate, based on technological advancement, future investments, economic utilis81ion and the physical condition of the assets. see note 15 for the carrying amount of each class of asset hèld. and above for the useful economic lives for each class of assets. (111 Impairm8nt of d8btors The Charitable Company makes estimates of the recoverable value of debtors. When assessing the impaimenl of debtors, management consider factors including the current credit rating of the debtor, the ageing profile of debtors and historic experien￿. See note 18 for the net carrying amount of deblors and associated impainnent provision. 11111 Provisions Provision is made for the dilapidation on leasehold premises. These provisions require management's best estimate of the costs that will be incurrsd based on legislative and contraotual requirements. (See note 20}. (IV) InGome recognition of legacies Residuary legacies have been recognised using a case by case basis when the amount receivable can be measured accurately following written conf1rmation from the estate executorladministrator. Management have aocrued for a percentage of the legacy pipeline which is Consistent with experience over the last four years. 38

Ty Hafan Notes to the Financial Statements - continued for the year ended 31 March 2023

2. INCOME FROM DONATIONS AND LEGACIES

Donations, appeals and similar income Legacies Covid Funding Unrestricted Funds £ 2,531,139 1,827,540 23,651 4,382,330	Restricted Funds £ 211,799 211,799 Total Funds Total Funds 2023 2022 £ £ 2,742,938 1,856,346 1,827,540 1,510,896 23,651 934,790 4,594,129 4,302,032

During the year the following COVID-19 government support was received

Job Retention Scheme Hospice Emergency Funding Covid Insurance Claim	2023 2022 £ £ 16,194 918,596 23,651 23,651 934,790

There are no unfulfilled conditions attached to the above grants received.

In accordance with the Charities SORP (FRS I 02) the Charitable Company accounts for legacies as receivable when conditions for entitlement have been met; and receipt of the income can be measured accurately. An external notification service is used to notify the Charitable Company of bequests and a system of monitoring ensures that the legacy is tracked until receipt.

At the year-end the Charitable Company had 74 (2022: 47) open legacy cases which had not met all of the above conditions. Should indicative amounts be received in respect of these legacies the Charity could benefit from a further£ 1,632,799 (2022 £969,599) in the future. In applying the requirements of the Charities SORP (FRS I 02) in measuring income when it can be accurately measured, an accrual of£ 142,973 (2022: £82,619) has been included in the accounts for legacy bequests.

3. INCOME FROM CHARITABLE ACTIVITIES

Local Health Authorities Training Public Funding	Unrestricted Restricted Funds £ 1,068,890 47,552 1,116,442 Funds £ Total Funds Total Funds 2023 2022 £ £ 1,068,890 565,984 47,552 47,155 1,116,442 613,139

39

Ty Hafan Notes to the Financial Statements - continued for the year ended 31 March 2023 INCOME FROM OTHER TRADING ACTIVITIES Unrestricted Funds Restricted Funds Total Funds 2023 Total Funds 2022 Retail attivities 2.052.407 2.052.407 1,808,629 Membership lottery 1,636,462 1,636.462 1,762,561 3,688,869 3,688,869 3,571 190 INVESTMENT AND OTHER INCOME Unrestricted Funds Restricted Funds Total Funds 2023 Total Funds 2022 Listed investment Income 322.995 322,995 254.778 Interest Received 25 323.002 323.002 254,803 6. EXPENDITURE ON RAISING FUNDS Unrestricted Restricted Total 2023 Total 2022 Donityon5. appeal& legacies and similar income 1,192,743 1,192,743 999,217 Membership Lottery 890.255 890,255 992.153 Investment Management Costs 52.176 52.176 59,548 Recall Expenditure 2,049.865 2,049,865 1,849,881 4.185.039 4,185,039 3,900,799 7. EXPENDITURE ON CHARITABLE ACTIVITES Unrestricted Restricted Total 2023 Total 2022 Prowsion of c￿.. Dirett Costs 3.828.700 268.142 4.096.842 3,908,568 Support Costs (see note 81 1,164,844 1.164.844 1.114.665 4.993.544 268.142 5,201.686 5,023,233 40

Ty Hafan Notes to the Financial Statements - continued for the year ended 31 March 2023 8. SUPPORT COSTS Charitable Activities Donat5ons & Legacies Membership Lottery Cost Categories Retail Total 2023 Basi5 Management 42.869 31,036 59,606 303.621 Average Head Count Finance 294.674 77.648 48,964 110.865 532,151 Average Head Count Governance Inotr 91 118,41 l TIMÈ Spent 119.42S 33,484 16.991 49,459 219.359 Average Head CouTr¢ Hutnan Resources 247,488 65,483 40,743 93.716 447.430 Average Head Count PK & Marketing 214 736 385,809 fime Spent 1,164.844 274.985 174.949 392,003 2006 781 All costs are attributed by activity on the basis of head count or time spent on each activity. As the Charitable Company has only one charitable activity all support costs are allocated lo this activity. 9. GOVERNANCE COSTS Analysed as: Unrestricted Restricted Total 2023 Total 2022 s￿ary costs 108,116 108.116 100,854 Audit fees 10.239 10,239 10,673 Accounung services 8,402 Legal and professional 56 56 63 Trustee's expenses 80 120,on 41

Ty Hafan Notes to the Financial Statements - continued for the year ended 31 March 2023

I 0. NET INCOME

The net surplus/ ( deficit) is stated after charging:

Operating leases Fees payable to the Charitable Company's auditor for the audit of the group Depreciation of owned assets 11. TRUSTEES' REMUNERATION AND BENEFITS Trustees Expenses	2023 £ 342,237 10,239 478,394 2023 £	2022 £ 359,533 10,673 736,718 2022 £ 80

During the year, 0 (2022:1) Trustees were reimbursed for miscellaneous expenses.

12. EMPLOYEES' REMUNERATION

a) Staf costs Staf costs during the year were: 2023 £ Wages and salaries 5,361,259 Social security costs 492,409 Pension costs 337,296 Redundancy and Termination Costs 21,131 6,212,095	2022 £ 5,079,928 427,659 329,649 17,311
	5,854,547

The key management personnel of the Charitable Company are the Chief Executive Officer, the Director of Nursing and Clinical Servies, the Director of Family Wellbeing and Outreach Services, the Director of Finance, the Director of Income Generation, the Director of People Services and the Director of Marketing Communications and Lottery. The employee benefits of key management personnel for the year totalled £477,490 (2022: £444,100). During the year there have been no ex-gratia payments to staff.

42

Ty Hafan Notes to the Financial Statements - continued for the year ended 31 March 2023

b) Staff numbers - average head count

) Staf numbers - average head count
	2023	2022
	No.	No.
Care Staf	91	92
Donations & Legacies Retail Staf Lottery staf	23 48 9	26 SI 14
Central services	23	22
	194	205

c) Higher paid staff

The number of employees whose gross emoluments fall within each band of £10,000 from £60,000 upwards are as follows:

60,000 upwards are as follows:
	2023	2022
	No.	No.
£60,00 I to £70,000
£70,00 I to £80,000
£80,00 I to £90,000
£90,00 I to £ I 00,000
£100,001 to £110,001

The Charitable Company· also made pension contributions on behalf of the above employees totalling £38,190 (2022: £35,548) which have not been included within the banding categories above.

13. TAXATION

As a registered charity, Ty Hafan is entitled to the exemptions from taxation in respect of income and capital gains received within Sections 478 - 489 of the Corporation Tax Act 2010 and section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that these are applied to its charitable objects purposes only.

The trading subsidiary, Ty Hafan Trading Limited, has utilised previous taxation losses against taxable profit for the year and hence there are no amounts chargeable to corporation tax.

The trading subsidiary, Crackerjackpot Limited, has gifted taxable profits arising during the year to its charitable parent Ty Hafan Limited and hence there are no amounts chargeable to corporation tax.

As a consequence of the above, no tax charges have arisen in the group.

43

Ty Hafan Notes to the Financial Statements - continued for the year ended 31 March 2023 14. CHARITABLE COMPANY RESULTS The Charitable Company has taken advantage of Section 408 of the Companies Act 2006 and has not included its own income and expenditure account in these financial statements. The results of Ty Hafan (the Charitable Company} are summarised below.. 2023 2022 Total incoming resources Total resources expended Net incoming resource5 Net unrealised investment gainll105sI Net movement in fund5 8.957.290 8681 907 7.892.103 8,074,731 275,383 626,920 (351,537) 1182.6281 612.293 429,665 Funds.. A5 1 April 2022 19 136.023 18,706,358 At 31 M2rch 2023 18,784,486 19.136,023 The above results include £808,809 (2022.. £852,567) in gift aid donations received by the Charitable Company from its trading subsidiary Crackerjackpol Limited. 44

Ty Hafan Notes to the Financial Statements - continued for the year ended 31 March 2023

15. TANGIBLE FIXED ASSETS

Group and Charity

Cost At I April 2022 Additions Revaluations Disposals At 3 I March 2023 Depreciation At I April 2022 Charge fr the year Revaluations Disposals At 3 I March 2023 Net Book Value At 31 March 2023 At 3 I March 2022	Freehold Land and Buildings £ 8,387,009 93,806 61,370 8,542,185 2,623,958 285,9 I 8 16,151 2,926,027 5,616, I 58 5,763,05 I	Fixtures and Fittings £ 1,201,397 17,528 1,218,925 1,069,421 87,033 I, I 56,454 62,471 131,976	Equipment £ 625,652 99,469 725,121 480,056 98,984 579,040 146,081 145,595	Motor vehicles Total £ £ 106,898 I0,320,956 210,803 (9,000} 52,370 97,898 I0,584, 129 96,542 4,269,977 6,459 478,394 (9,000} 7,15 I 94,001 4,755,522 3,897 5,828,607 10,357 6,050,979

16. FIXED ASSET INVESTMENTS

Total fixed asset investments comprise:

Interests in subsidiary undertakings Market value of other fixed asset investments	2023 2022 Group Charity Group Charity £ £ £ £ 10,001 10,001 12,476,891 12,476,891 12,837,993 12,837,993 12,476,891 12,486,892 12,837,993 12,847,994

45

Ty Hafan Notes to the Financial Statements - continued for the year ended 31 March 2023

FIXED ASSET INVESTMENTS (CONTINUED)

Interests in group undertakings

At 31 March 2023, the Charitable Company held 100% of the allotted ordinary share capital of the following subsidiaries:

	Country of	Class of	Company	Nature of	Capital and	Result fr
	Incorporation	Share	Number	Business	Reserves	the Financial
		Capital				Year
		Held			£	£
Ty Hafan	England &	Ordinary	05129825	Trading	12,273	334
Trading	Wales	shares		Merchandise
Limited
Crackerjackpot	England &	Ordinary	08221671	Lottery	10,000
Limited	Wales	shares		Operations

Other fixed asset investments were held as follows:

	2023	2022
	Group and Charity	Group and Charity
	£	£
Listed Investments
Market value at I April	12,837,993	12,530,466
Additions	2,062,442	3,500,777
Disposals	(I, 788,075)	(4,001,036)
Cash movement	(8,549)	195,493
Revaluation	{626,920}	612,293
Market value at 3 I March	12,476,891	12,837,993
Cash included in total	867,758	876,307
Historical cost	12, I 07,828	11,685,893

The market value at 31 March 2023 comprises a sum of £12,395,033 managed by Brewin Dolphin (2022: £12,754,664). Also included in the market value are £81,858 (2022: £83,329) of shares which were bequeathed to the Charity taking the investment portfolio to £12,476,891 at the balance sheet date.

46

Ty Hafan Notes to the Financial Statements - continued for the year ended 31 March 2023

Income generated totalling £322,995 (2022: £254,778) was invested after deduction of management charges of £52,176 (2022: £59,548). The investments are unrestricted. During the year there were £0 (2022: £500,000) withdrawals from the investment portfolio to fund capital and other programme expenditure. The portfolio includes £5,589,565 (2022: £6,244,176) invested in UK investments and £6,887,326 (2022: £6,593,817) invested in overseas investments.

17. STOCKS

Retail goods held for sale 18. DEBTORS Trade Debtors Prepayments and accrued income Due from subsidiary undertakings Employee beneft schemes VAT recoverable	2023 Group Charity £ £ 5,127 2023 Group Charit £ £ 460,649 460,649 478,799 444,668 180,014 2,405 2,405 65,547 65,547 1,007,400 **I,I 53,283 **	2022 Group Charity £ £ 3,460 2022 Group Charity £ £ 379,577 379,577 410,001 403,577 333,015 23 23 50,940 50,940 840,541 I, 167,132	2022 Group Charity £ £ 3,460 2022 Group Charity £ £ 379,577 379,577 410,001 403,577 333,015 23 23 50,940 50,940 840,541 I, 167,132
			I, 167,132

Debtors are stated after provisions for impairment of £Nil (2022: £Nil).

47

Ty Hafan Notes to the Financial Statements - continued for the year ended 31 March 2023

19. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Trade creditors Owed to subsidiary undertakings Social security and other taxes Accruals Deferred income	Group £ 142,445 164,555 320,495 692,076 1,319,571 2023 Charity £ 129,946 7,146 157,371 306,750 537,304 1,138,517 Group £ 192,184 154,665 193,832 326,973 867,654 2022 Charity l 190,379 8,480 142,550 183,660 169,692 694,760	Group £ 142,445 164,555 320,495 692,076 1,319,571 2023 Charity £ 129,946 7,146 157,371 306,750 537,304 1,138,517 Group £ 192,184 154,665 193,832 326,973 867,654 2022 Charity l 190,379 8,480 142,550 183,660 169,692 694,760
		694,760

48

Ty Hafan Notes to the Financial Statements - continued for the year ended 31 March 2023

CREDITORS: DEFERRED INCOME

Deferred income consists of income received in respect of future draws of the group's weekly membership lottery, and grants to be utilised in future periods.

As at I April Amounts released to incoming resources Amounts deferred in the year As at 3 I March	2023 Group £ 326,973 (223,194) 588,297 692,076	Charity £ 169,692 (65,913) 433,525 537,304 Group £ 304,569 (269,078) 291,482 326,973 2022 Charity l 148,277 ( I 12,786) 134,201 169,692

20. PROVISIONS FOR LIABILITIES AND CHARGES

		2023			2022
	Group		Charity	Group		Charity
	£		£	l		l
As at I April	502,306		502,306	615,363		615,363
Additions	8,733		8,733	I 5,484		I 5,484
Charged during the year	0		0	{128,541}		{128,541}
As at 3 I March	511,039		511,039	502,306		502,306

The nature of the Charitable Company's activities requires it to enter into lease agreements for various items of equipment, property and vehicles.

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 terms of each agreement.

49

Ty Hafan Notes to the Financial Statements - continued for the year ended 31 March 2023

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 £255,492 (2022: £242,229).

There were no outstanding or prepaid contributions at either the beginning or end 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 rates are reviewed every four years following a scheme valuation carried out by the government actuary. On the advice of actuary, the contributions may be varied from time to time to reflect changes in the scheme's liabilities.

The last formal actuarial 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 employer and employee contribution rates from April 2019. The Department of Health and Social Care have recently laid Scheme Regulations confirming that the employer contribution rate will increase to 20.6% of pensionable, pay from this date.

Completion of the 2020 valuation is expected from HMT in summer 2022, and the results of the 2020 valuation and the employer cost cap will be reported in the 2022- 22 NHS Pension Scheme accounts.

The contributions to this NHS scheme in the year were £83,150 (2022: £94,311)

The Charitable Company has made no employer contributions into employee personal pension schemes.

50

Ty Hafan Notes to tho Financial Statements - continued for the year endèd 31 March 2023 22. MOVEMENT IN FUNDS- GROUP ealance atlApr 2022 Unrnallsed 8aln on In¥estments Incomlng resourc¢s Outgolng Balance at 31 Mar 2023 re50yrres Tranlfert Unre5tr1cted lunds General fiJnds 10,789,789 9,510,643 9,107.929 814,865 626.920 9750718 Desi4nated Fundi Care In C¢)mmunity fvxed Assers 40.013 40,013 5.343.132 1138,7781 961.760 5.204.354 Aanned Dekbts 1.226.1J 2,187,760 Mapr Captsl ProiKts HospKe Staff Cos Trans￿"on SC#).C¥y) 500,000 125.0 125.000 246.282 .654 17S.628 7.4￿.427 .654 821982 8.232.755 Restrlcted fundi 588.717 (8.Iin 510.600 Hospice Egulpment Staff C05t5 39,487 16.(**J 139.9591 1149,8131 1414121 12501 1 5,528 183.593 65,952 99,731 ospice Service Users Hospice Bulldln8 Works H05picp IT Girden Works Proj¢tt 13,918 96.206 95,956 34.789 3,356 135,7081 2.437 Care in Communi S.114 877,745 211.799 268.142 813 285 19.147,%1 9.721H2 9.446.725 626,920 18796758 Included within the above ganaral funds are funds of the subsidiaries amounts to £12.273 (2022-. £11,939) all of which are unrestricted. 51

Ty Hafan Notes to the Flnanclal Statements - continued for the year ended 31 March 2023 MOVEMENT IN FUNDS- GROUP (CONTINUED) General Funds: General funds are available for use al th& trustees. discretion in furtherance of the objectives of the Charitable Company. Included in general funds is the revaluation loss of investments to markel value of £626,920 (2022.. rèvaluation gain of £612.2931. Fund Transfers: During the year £8,11712022 £212.6631 was transferr8d from restricted funds to unrestricted funds. This relates lo the depreciation charge on the building asset funded by the Welsh Government held in restricted funds (see note below). Restricted Funds: The Big Lottery provided funds towards an extension to the hospice in 2015 and equipment. This fund is charged wilh 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 capitalised in the financial statements. During the year we were also kindly donated funds towards the refurbishment of the hospice sanctuary space, staffing for bereavement, play and transition services. Designated Funds: Included in the Unreslrioted Funds are 3 donations received that have been designaled for specific future expenditure, a total of £125,000 has been ring fenced for hospice staff costs, £40,013 for providing care in the Community and a legacy donation of £246,282 which is being spent on resourcgs lo help the transition between Child and adult services. There is also an allowance for the funds invested in the hospice and office building of £5,204,354, a provision of £2,187,760 to cover planned deficits for the 2023124 financial year and a £500,000 provision for major Gapital projects where grant funding is not available. 52

Ty Hafan Notes to the Financial Statements - continued for the year ended 31 March 2023

23. ANALYSIS OF NET ASSETS BETWEEN FUNDS

GROUP

Unrestricted funds Restricted funds Total funds CHARITY Unrestricted funds Restricted funds Total funds		Fixed assets £ 5,248,007 580,600 5,828,607 Fixed assets £ 5,248,007 580,600 5,828,607	Investments £ 12,244,206 232,685 12,476,891 Investments £ 12,254,207 232,685 12,486,892	Net current assets £ 1,002,299 1,002,299 Net current assets £ 980,026 980,026		Provision £ (51 1,039) (S 11,039) Provision £ (51 1,039) (511,039)		Total £ 17,983,473 813,285
								18,796,758 Total £ 17,971,201 813,285
								18,784,486

53

Ty Hafan Notes to the Financial Statements - continued for the year ended 31 March 2023

24. RECONCILIATION OF INCOME/(EXPENDITURE) TO NET CASH FLOWS FROM OPERATING ACTIVITIES

			2023	2022
		Note	£	£
Surplus / (Deficit) of income over expenditure			(3S 1,203)	429,425
(Gains) / Losses on investments		16	626,920	(612,293)
Net investment income and bank interest payable		5	(323,001)	(254,803)
Investment portfolio management fees		6	57,176	59,548
Depreciation		15	478,394	736,718
Disposals/ Revaluation Movement		15	(45,219)	55,728
Increase in stock		17	(1,667)	12,842
Decrease/ (Increase) in debtors		18	(166,859)	368,205
Increase in creditors		19	451,917	(1,521)
Movement in provision for liabilities and charges		20	8,733	( I 13,057}
Net cash outflow from operating activities			735,191	680,792
2S. CAPITAL COMMITMENTS
s at 31 March 2023, the Charity had capital	commitments totalling £0		(2022: £0).
26. OPERATING LEASE COMMITMENTS
s at 31 March 2023, the group had annual commitments under non-cancellable operating
ease arrangement as follows:
	2023		2022
	Group	Company	Group	Company
	£	£	£	£
Land and Buildings
Leases expiring within one year	142,717	142,717	193,800	193,800
Leases expiring within 2 to 5 years	80,825	80,825	214,792	214,792
Leases expiring within greater than 5 years
	223,542	223,542	408,592	408,592
Other Operating
Leases expiring within one year	10,086	10,086	I 0,633	10,633
Leases expiring within 2 to 5 years	5,625	5,625	10,295	10,295
Leases expiring within greater than 5 years
	15,711	15,711	20,928	20,928

As at 31 March 2023, the Charity had capital commitments totalling £0 (2022: £0).

As at 31 March 2023, the group had annual commitments under non-cancellable operating lease arrangement as follows:

Ty Hafan Notes to the Financial Statements - continued for the year ended 31 March 2023

27. LEGAL CHARGE

The Charitable Company has entered into a covenant with the New Opportunities Fund to discharge all monies and liabilities which shall from time to time be due as set out in the grant contract. As part of the agreement to award the Charitable Company a grant to fund the building of the new Hospice extension as continuing 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 £5,616,158 (2022: £5,763,051), 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 time vested in or conferred on the Charitable Company in connection with or otherwise for the benefit of the property.

28. CONTINGENT LIABILITY

Sale of Land

As part of the agreement to purchase the freehold of the land on which 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 possible at this time to quantify any contingent liability arising.

29. MEMBERS' LIABILITY

The Charitable Company is a private company limited by guarantee and consequently has no share capital. Each of the 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 transactions with its subsidiaries under the provisions of FRS 102, as the subsidiaries are 100% controlled by the Charitable Company.

31. INDEMNITY INSURANCE

The group has taken out Charity and Charity Trustees Indemnity Insurance at a cost of £499 (2022: £499).

55

Ty Hafan Notes to the Financial Statements - continued for the year ended 31 March 2023 32. PRIOR YEAR STATEMENT OF FINANCIAL ACTIVITIES Unrestricted Restricted Total Funds Funds Funds 2022 Income from: Donation5 and Legacies Charitable Activitie5 3.880.571 421.401 4.302,032 Provision of Care 613,139 3,571.190 254,803 613,139 3.571,190 254.803 Other Trading Activities Investments and other income Total income 8,319,703 421,461 ,741.164 E¥penditure on: Trading Activityes Total income net of trading expenditure 2,841034 1842,034 5,899,130 5,477,669 411,461 Expenditure on: Raising Funds Investment Management 999,217 59.548 999,217 59,548 4 840,36S Net incorne Avwlable for Charitable Activitie5 4418904 421.401 Charitable Activities Prov15ion of Care 4.808.895 8 709 094 214.338 214338 5.023,233 8 924 032 Tot1 Expenditure Net Income before galnsl(10sses) on Investments 389.991 207 123 182868 Nec ￿InsI<l0$sesI on invesrments 612,293 612,293 Net Income l (Expendlture) 222 302 207 123 429 425 Gross transfers between funds 212,603 (212.663) Net movement in funds 434,965 IS.5401 429.425 Reconciliation of Funds Funds baI2nces brought forward 17,83S.251 883,285 18,718,536 Fund balances Carrled forard 18,270,216 877,745 19,147,961 56

Ty Hafan Notes to tho Flnanclal Statemonts- contlnued for tho year ended 31 March 2023 33. PRIOR YEAR MOVEMENT IN FUNDS- GROUP Balan¢e 4¢ IApr 2021 Unreallsed gain on Inv¢itmÈnts B￿aTh(e at 31 Mar 2022 Incoming resources OutBolnB resources Transfers Vnrwtrir¢¢d funds General fun¢ts 9.89&183 .319.703 715.912 675.522 611293 10719 719 D¢slgn4ted Fundi Care in Communsry 31220 7,793 40,013 5.395,991 {51859 (910.CWI 5.J43.132 anned 1.226.000 Major Capital Projects Hospice Staff Costs Transffjon 50•.0011 125,Cl)) 125.000 247,857 1,575 146 281 7,937,068 6.218 462,859 7 480 427 Restrkted funds Building Hospice Equipment StAff Cosrs 443.037 168,797 {15.OC#J} (&iin 588,717 38,945 39,487 187.867 149.469 1153.7431 I34.￿2} 103,593 Hoswce Service Users H05wce Relurtrthment ApFxal H05pi¢e IT Garden Work5 Projett Care in Cornrnuni¢y 12,221 51940 31,159 163.154 36.620 {199.7741 38,061 14.7ni 34.789 883,285 421.461 214,338 212,663 877 745 1&718.536 8.741.164 8.924.032 611293 19 147.961 57