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2021-03-31-accounts

Trustees, Annual Report and Accounts 2020-21 palliotive. neurological and bereavement support

- i fe a a > ae atl -_ Members of our team at Sue Ryder Leckhampton Court Hospice.. 1 ee - b “7 ‘ T. ' hie ats . : the “em ; he

Contents

Foreword: ‘There when it matters’ 7
Strategic report (including the Directors’ report) 8
The impact of coronavirus (Covid-19) 8
Our achievements 10
Our future plans 14
Section 172 statement 16
Financial review 19
Risk matrix 28
Fundraising 32
Energy and carbon reporting 36
Structure, governance and management 40
Legal and administrative details 46
Financial statements 52
Independent auditor’s report 52
Accounts for year ended 31 March 2021 58
Notes to the accounts 64
Thank you 96
Recognition of our high value supporters 96

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Foreword

Foreword: ‘There when it matters’

Welcome to our Trustees’ Annual Report and Accounts for 2020–21.

We have never been prouder of Sue Ryder and the way everyone pulled together to manage the coronavirus crisis.

Heidi Travis Neil Goulden Chief Executive Chair of Trustees

Personally and professionally, 2020–21 will be among the most difficult years we will ever face. Every week seemed to present a new challenge and the next few pages demonstrate the enormous impact of coronavirus (Covid-19) on our organisation, not only on our income but on our ways of working and delivering care during the pandemic.

At Sue Ryder, we support people through the most difficult times of their lives. Whether that’s a terminal illness, the loss of a loved one or a neurological condition – we’re there when it matters. Our doctors, nurses and carers give people the expert care and compassion they need to help them live the best life they possibly can.

We have never been prouder of Sue Ryder and the way everyone pulled together to manage the coronavirus crisis. Our healthcare teams faced significant additional pressure and worked in incredibly difficult conditions, wearing PPE for hours at a time and having to socially distance from each other and from the people we care for. Despite all this, they continued to deliver the exceptional care that Sue Ryder is known for, placing the wellbeing of our service users and their families above everything else.

Our fundraisers came up with new and innovative ways to raise money virtually; our shop teams adapted to new ways of working amid multiple lengthy closure periods; our influencing and communications teams helped to build awareness and support; and everyone, no matter where in the charity they work, played a key role in helping Sue Ryder stay true to our vision, mission and values. Every step of the way, our focus was on finding ways to ensure we could continue providing our expert care and compassion to the people who need us. Successes ranged from the rollout of virtual care technology and increasing our short-term rehabilitation provision to expanding our Sue Ryder Online Bereavement Support to reach more people in their own homes. Ensuring our services

continued to deliver a high standard of care remained our top priority and we achieved a great deal in 2020– 21, despite the challenges that came our way.

This report outlines our progress under our two strategic aims. These are set out in our five-year strategy for 2018–2023, which is available on the Sue Ryder website at sueryder.org. Our strategic aims are: • To provide care and support for more people • To influence new models of care across the UK

This report also includes a section on how we have operated differently to achieve our ambition to provide more care for more people. In addition to providing an overview of our achievements, the report contains our full financial report and accounts, as well as legal and administrative information about Sue Ryder. We have also published a separate Impact Report, illustrating how our palliative, neurological and bereavement services have benefitted the people we support. Both this report and the Impact Report are available on our website.

We have entered 2021–22 with a clear Covid-19 recovery plan in place, and a confidence in our ability to deliver on our strategic aims and our ambition to provide more care for more people. We have also welcomed a new Chair of Trustees, Dr Rima Makarem, who took up the post from 15th July 2021 following Neil’s retirement after nearly nine years with Sue Ryder.

Thank you for your interest in Sue Ryder. If you would like to find out more about our work or how to support us, please visit our website at sueryder.org.

Best wishes,

Heidi Travis Neil Goulden Chief Executive Chair of Trustees (to 15 July 2021)

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Strategic report

Strategic report

The impact of coronavirus (Covid-19)

Throughout 2020–21, as with many organisations across the charity sector, Covid-19 had a significant impact on our operations and the income generated through our retail activity and fundraising events. Our main priority was to continue delivering our frontline healthcare services while protecting our staff, volunteers and service users. We also focused on growing our online bereavement support as the need for this increased across the UK. This page includes a summary of the key initiatives we introduced in response to the crisis. You can read about the financial impact of Covid-19 on pages 19–27.

Emergency funding

Expansion of our Online Bereavement Support

To address the funding gap left by the cancellation of fundraising activity and the closure of our shops, we delivered a number of fundraising campaigns in 2020– 21. The first was our Coronavirus Emergency Appeal which, combined with the enhanced government funding for hospices announced in April 2020, allowed us to continue providing our services in the first half of the financial year. A second successful appeal, called We Can’t Stop, was run in November 2020, alongside the announcement of further government funding for hospices over the Winter months. We also grew our annual December Daily Dash event, as supporters were able to do this on their own or with their household.

We saw an increase in demand for our Online Bereavement Support, particularly our Online Bereavement Community and Online Bereavement Counselling. Both services were already uniquely placed to provide support free of charge in people’s own homes before the crisis so, to ensure that we could support as many bereaved people as possible, we expanded the services and promoted them more widely. In particular, we secured additional funding, which allowed us to hire more counsellors at a time of increased need for this support.

Virtual care growth

PPE for our frontline services

Using the learnings from our trial at Sue Ryder Wheatfields Hospice, we rolled out virtual care technology to all our hospices and neurological care centres at the start of the outbreak. We mobilised quickly to introduce this major shift in our care delivery, and our use of this technology meant we were able to continue providing our palliative, neurological and bereavement support despite severe visiting restrictions. Doctors, nurses, day services and family support teams used the technology for online consultations, group therapy, peer-to-peer clinical support and family contact. We will continue to offer this blended healthcare delivery model in future, combining virtual support with face-to-face contact to meet care needs in the most effective way.

We launched a PPE campaign early in 2020–21, asking supporters to email their MPs about the lack of supplies for our hospices and neurological care centres. This attracted widespread support and significant media interest, which resulted in improvements in the availability of PPE to non-NHS health and social care providers. We also sourced PPE directly from new suppliers to ensure we could cover shortages from the NHS supply, and utilised the logistics skills and expertise of our retail teams to set up a national distribution centre from one of our hospices, to ensure our frontline healthcare services could continue.

Adapting our neuro-rehab services

Following approaches from clinical commissioning groups (CCGs), we dedicated several beds across two of our neurological care centres to shorter, more intense periods of rehabilitation treatment for people being discharged from hospital. The CCGs were concerned at the loss of rehab beds due to Covid-19 and were keen to ensure people who needed specialist rehab following a stroke or acquired brain injury could still access this. Without this rehab at the right time, these people may never get to return home or may remain highly dependent in the long term. As well as achieving better outcomes for our clients, this presented a new way of collaborative and effective working with our partners.

New roles for our volunteers

Our volunteers sprang into action to support Sue Ryder in new ways in 2020–21. Volunteers from our healthcare and fundraising teams were redeployed into online, outdoor and telephone-based roles. These roles were very effective and the collective impact of our volunteers continued to be huge. We also welcomed a number of new volunteers to support our Online Bereavement Community. Volunteers contributed an amazing 350,000 hours of support during 2020–21, and their passion and commitment is very much appreciated.

Wellbeing support for our staff

We rolled out wellbeing resources and tools to support frontline healthcare teams, other active colleagues and furloughed staff. These included coaching for senior leaders across healthcare, support resources for line managers, signposting access to support organisations, wellbeing guidance on a variety of subjects, wellbeing training sessions and mental health awareness resources. We have also trained new Mental Health First Aiders throughout the charity to support staff and signpost them to additional resources where needed.

In response to funding gap left by fundraising events being cancelled and the closure of our shops, we launched our Coronavirus Emergency Appeal in April 2020.

----- Start of picture text -----
Looking after your mental health Wellbeing guidance
The outbreak of Covid-19 has led Having good mental health can help us how we feel mentally and physically, so it’s Need more help?
to unprecedented change, new sleep better, feel better, enable us to do important to get enough. If you need further information or advice,
challenges and greater uncertainty the things we want to do and improve contact your line manager, your Mental
in all of our lives. This will take an the relationships we have with those Connect with others Health First Aider, your People Advisor
emotional as well as a physical toll, around us. Spending quality time with friends or or the Learning and Organisational
so it is essential to be aware of how family, talking to someone about how you Development team.
to look after the mental health of ourselves and others. Tips for keeping are feeling or finding ways to help other people can reduce feelings of loneliness If you need more information about
mentally healthy: and improve your mental health and Covid-19, visit RyderNet or email
What is good mental health? wellbeing. covid19.queries@sueryder.org
Looking after our mental health is not Reframe our thoughts
just something we should do if we are The way we think, feel and behave are Live a healthy life
struggling or feeling low, anxious or linked. Sometimes, we develop patterns of Being active, enjoying the outdoors and
stressed. It’s actually something we thoughts or behaviours that are unhelpful. having a healthy, balanced diet all have an
should think about all the time and really Recognising them, and taking steps to impact on how we feel. Also, binning bad
invest in, just like with our physical health. think about things differently, can improve habits like smoking and cutting down on
your mental health and wellbeing. alcohol and caffeine can have a positive
effect on our mood.
Be in the present
If we take time to be aware of ourselves Do something for yourself
and be present in the moment, noticing From enjoying your favourite hobby to
our own thoughts and feelings, and the learning something new or simply taking
world around us, we can gain a better time to relax, it’s important to do things
perspective. Sometimes this is known as that make you happy.
being more mindful.
7 For further advice please visit: wl
Get good sleep www.nhs.uk
Good quality sleep makes
a big difference to
= Sue Ryder is a charity registered in England and Wales (1052076) and in Scotland (SC039578). Ref. 07186. ©Sue Ryder. May 2020. _
----- End of picture text -----

Wellbeing guidance

Our wellbeing resources to support colleagues throughout the Covid-19 crisis.

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Strategic report

Strategic report

Our achievements

Despite the challenges of the coronavirus pandemic, we made significant progress towards the aims set out in our five-year strategy to provide care and support for more people and to influence new models of care across the UK. Here is a summary of our key achievements from 2020–21.

Providing care and support for more people

Influencing new models of care across the UK

Sue Ryder Neurological Care Centre Lancashire.

Our #PPEtoProtect Handraiser launched in April 2020 urging our supporters to contact their MP’s to stress our urgent need for PPE.

Our Sue Ryder Online Bereavement Counselling Website.

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Strategic report

Strategic report

Our achievements (continued)

Operating differently to achieve

our aims

England’s palliative care funding challenge

The current situation

Palliative care is the care and support given to people with life-limiting conditions like cancer, heart failure and lung disease. Sue Ryder is one of the country’s leading specialist palliative care providers, providing expert and compassionate care to people at the end of their lives. Currently, less than 50% of all people dying in England receive palliative care, yet up to 90% may have palliative care needs. What’s more, demand is projected to increase from 245,000 patients in the coming year to 379,000 by 2030/31 . This is due to a number of factors such as increased mortality rates caused by demographic changes, as well as a growing desire by patients to die at home rather than in hospital. Such a significant increase in demand for these services is leading to a crisis in the charitable care sector and it does not even address the number of people who need palliative care but don’t receive it. New research findings

Sue Ryder has recently commissioned independent research to examine the costs required to meet the demand for palliative care services over the next ten years. It found that the cost of hospice provision of palliative care is estimated to be £947m per year between now and 2030. Given the future increase in demand over the next decade, if Government funding continues in line with its current model of covering 37% of these costs, hospices will be required to raise £597m each year through fundraising. This is simply unrealistic, and the hospice sector cannot be balanced on this fragile basis. This research has highlighted the stark reality of the danger facing the independent hospice sector . If high-quality patient outcomes are to be preserved and the hospice sector is to continue to be able to provide these essential services, it is clear that the Government needs to commit now to an increase in funding to ensure its future sustainability. What needs to change

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Despite the Health Secretary affirming in Parliament
that the Government is committed to investing
in ‘high quality palliative care’, no sustainable
funding has, as yet, been forthcoming.
Without a Government commitment to
significantly increase levels of statutory
funding to cover clinical costs for palliative
care services, there is a genuine and
serious risk of services being
withdrawn and patients and their families
losing out on the specialist, holistic support
that hospices offer.
----- End of picture text -----

Palliative Care Funding campaign launched based on independent research which shows that Government covers just 37% of palliative care costs each year.

Social medial influencer Lottie Tomlinson becomes a Sue Ryder ambassador.

Develop your career through Sue Ryder’s Knowledge Academy We can now offer structured external learning opportunities to all paid colleagues at Sue Ryder – with qualifications at all levels!

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There’s a wealth of information and
resources to help you, including how
to apply and information about the course
providers we are working with. Head to
RyderNet to find out more or pick up an
information leaflet.
If you have any further questions, contact
Michael Zacaroli in the Organisation
Development Team on 07773 039 125 .
Sue Ryder is a charity registered in England and Wales (1052076) and
in Scotland (SC039578). Ref. No 06992 ©Sue Ryder. September 2019
----- End of picture text -----

As of March 2021, 113 apprenticeships were underway through the Sue Ryder Knowledge Academy.

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Strategic report

Our future plans

It has been three years since we launched our five-year strategy with the ambition to provide more care for more people. With the support of everyone across the organisation, we have already achieved many great things, transforming lives and changing the way we work at Sue Ryder.

As we move into the fourth year of our strategy, taking into account external changes and lessons learned from the coronavirus crisis, we have reshaped our areas of focus to help us achieve our goals. We are now focusing on the following four key areas, encouraging collaborative working and bringing more teams together to work in partnership towards our ambition.

Impact Growth

We will:

Financial Sustainability

We will:

Brand and Culture

We will:

Technology and Data

We will:

Our new HR system PeopleHub launched in June 2021.

We are progressing our ED&I strategy.

We will build our retail operation to be the very best it can be.

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Strategic report

Strategic report

Section 172 statement

Trustees’ duties to promote the success of the charity – s172 statement

Under section 172 of the Companies Act 2006,

Sue Ryder’s Trustees have a duty to act in the way they consider, in good faith, would be most likely to promote the success of the charity to achieve its charitable purposes. In doing so, they are required to have regard to various factors including:

Throughout this report, we have summarised our governance and decision making framework, our values and behaviours, and our engagement with our service users, employees, volunteers, commissioners and other stakeholders during the year. This demonstrates how these factors are embedded in decision making at board and executive level and

throughout Sue Ryder. The Council of Trustees was involved in all decisions relating to crisis management as a result of the coronavirus pandemic and took an active role in ensuring the charity remained operational and continued to deliver the high standard of expert care and compassion that we are known for. In making these key decisions, the primary focus was on the financial sustainability of the charitable company, and ensuring the safety and wellbeing of our beneficiaries, employees and volunteers.

The likely consequences of any decision in the long term

Our five-year strategy was approved by the Council of Trustees in 2018. This strategy is the reference point for all decision making and its strategic aims are to provide care and support for more people and to influence new models of care across the UK. You can read about our key achievements against our strategic objectives on pages 10–13. The strategy is regularly reviewed to ensure that we respond and adapt to changes in the external environment. The table sets out our key stakeholder groups, the key considerations of each group and how we engage with them.

Stakeholder group

Existing and

potential

Employees and volunteers

Key considerations

How we engage

Stakeholder group Key considerations

How we engage

commissioning groups and local authorities)

Key opinion leaders and influencers (MPs)

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Strategic report

Section 172 statement (continued)

Financial review

Sue Ryder reported net income of £11.1m in the year compared to net expenditure of £4m in 2019–20. The effect of the Covid-19 pandemic on our finances has been significant. The results for the year include the closure of non-essential retail for a total of six months over the course of the year, and the cessation of face to face and public fundraising activities due to lockdown restrictions. In response we developed and launched a number of fundraising campaigns which, combined with local and central Government Covid-19 support funding provided in response to the pandemic, ensured that we could continue with the provision of our charitable activities throughout the year. The results are inclusive of this Covid-19 support funding which comprised: £20.8m of hospice funding awarded by NHS England; support of £1.3m received from Clinical Commissioning Groups and local authorities; £10.8m from the Coronavirus Job Retention Scheme; and £3.3m from the Retail, Hospitality and Leisure Grant Fund.

the Job Retention Support Scheme and grants relating to the enforced closure of our shops.

The support from the public and trusts in response to our major national appeals and our ongoing local fundraising activity was overwhelming. At the beginning of the crisis in March 2020, we implemented tighter cost and cashflow management controls in order to mitigate the impact of reduced income. These controls remained in place throughout the year and we will continue to maintain appropriate additional controls whilst we navigate the ongoing financial economic uncertainties and challenges posed by the pandemic.

The table below shows income and expenditure before gains/(losses) on investments. The charity’s retail contribution is shown net, rather than gross. Due to the closure of retail in the year, a net deficit contribution of £26.0m was recorded (income of £17.0m, less direct and allocated support costs of £43.0m).

Results for 2020–21

Our consolidated results include the income (and costs) of the charitable and trading subsidiaries. Whilst retail provides income to the charity, the cost of operating retail is considerable. When the income is considered in gross terms, it can distort our income and expenditure analysis. In reality it is the net contribution of retail (after all operating expenses and allocated support costs) which the charity has available to spend on charitable activities.

The charity’s financial results for 2020–21 were impacted by the actions taken by management in response to the exceptional circumstances presented by the Covid-19 pandemic. Our hospices have benefited from additional funding from NHS England, to allow the hospices to make available bed capacity and community support; and to provide support to people with complex needs in the context of the Covid-19 pandemic. We also received government support from

*including the Fundraising Regulator, Care Quality Commission, Care Inspectorate, Charity Commission, Office of the Scottish Charity Regulator, Information Commissioner’s Office and Companies House.

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Strategic report

Statement of Financial Activities summary and net calculations

Income
£000s		 Expenditure
£000s		 2020–21 Net
£000s		 2019 –20 Net
£000s
Charitable activities
– End-of-life care 32,929 (25,310) 7,619 (14,801)
– Neurological care 18,234 (19,788) (1,554) (2,690)
– Homecare Scotland 1,575 (1,259) 316 447
– International - (80) (80) (64)
Raising Funds
– Fundraising 20,989 (3,192) 17,797 16,280
– Retail contribution (deficit)/surplus* (26,081) - (26,081) 724
Other
– Other 2,456 - 2,456 2,244
– Support - (5,456) (5,456) (5,439)
– CJRS and RHLGF Covid support 14,150 - 14,150 -
Net income/(expenditure) 64,252 (55,085) 9,167 (3,299)

Sue Ryder provide more care for more people when it really matters.

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Strategic report

Strategic report

Financial review (continued)

Income

Income from the NHS and local authorities increased by £1.0m (3%) in the year to £30.7m (2019–20 £29.7m).

Our principal sources of income are statutory funding from the NHS and local authorities for our palliative, neurological and homecare services; donations from the public, trusts, foundations and corporate; and retail activities. Income lost during the year due to the closure of retail and the cessation of face to face and public fundraising activities was supplemented by additional government support (Covid-19 support funding).

The core grants we received for end-of-life care in our hospices remained broadly unchanged from previous years. We received non-recurring income of £0.1m during the year (2019–20 £0.5m) from additional funding for hospices released by central government in late 2019.

Neurological income increased by £3.8m to £17.8m. This was achieved through increased capacity at Sue Ryder Neurological Care Centre Lancashire which opened in April 2020, as well as a full year of additional capacity at Sue Ryder Neurological Care Centre Dee View Court (an extension with increased bed capacity opened in November 2019). We secured increased income in all of our centres commensurate with the increasing complexity of our clients’ care needs.

Statutory income

Income

----- Start of picture text -----
£20.0m
17.8
£17.5m
£15.0m
14.0
12.9
£12.5m
11.4
£10.0m
£7.5m
£5.0m
2.8
£2.5m
1.5
£0.0m
End-of-life care Neurological Homecare
2020–21 2019–20
----- End of picture text -----

In Homecare Scotland we exited the market in Angus at the end of April 2020 and now operate in Stirling only. We delivered fewer hours of care as a result of this (in 2019–20 Angus generated £1m income) and coupled with increased competition in the market and the impact of the pandemic on staff availability, we saw a fall in income of £1.3m.

We received other non-recurring income of £1.3m from Commissioners and Local Authorities in direct response to the pandemic which has been disclosed separately with other NHS, local and central government funding received as a result of the pandemic.

Fundraising

£8.9m). Legacies are variable in their nature, and the prior year was positively impacted by a particularly large single gift which significantly bolstered the income in 2019–20.

Income

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£12.0m
10.7
Retail
£10.5m
9.8
Income/costs
8.9
£9.0m £70m
8.3
£63m
£7.5m 58.8
£56m
52.5
£6.0m
£49m
£4.5m
£42m
38.2
£3.0m 2.7 £35m
2.0
£28m
£1.5m
£21m
17.0
£0.0m
Lottery/Other Donations Legacies £14m
2020–21 2019–20
£7m 4.8 [5.6]
Total fundraising income declined by £0.4m to £21.0m 0.7
in the year. The cancellation of public and face to face £0m
Income Direct Indirect Net
fundraising events as a result of the pandemic had a
costs costs income
significant impact on our fundraising operations. In
response we developed the Coronavirus ‘Emergency
Appeal’ to enable us to continue provision of our
services in the first half of the year. The appeal ran from
2020–21
April–June 2020 and generated £3.65m in donations.
2019–20
A second appeal ‘We can’t stop’ was launched later,
-26.0
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Total fundraising income declined by £0.4m to £21.0m in the year. The cancellation of public and face to face fundraising events as a result of the pandemic had a significant impact on our fundraising operations. In response we developed the Coronavirus ‘Emergency Appeal’ to enable us to continue provision of our services in the first half of the year. The appeal ran from April–June 2020 and generated £3.65m in donations. A second appeal ‘We can’t stop’ was launched later, running from November 2020 – January 2021 and generated an additional £1m to ensure continuation of our charitable activities. General donations from the public, trusts, foundations and corporates increased by 9% to £10.7m in the year (2019–20 £9.8m).

The national lockdown in response to the Covid-19 pandemic forced the closure of our retail shop network, which began in the prior year and has contributed to the net deficit position for retail in the year.

Income from the Sue Ryder Lottery was significantly impacted by shop closures and face to face fundraising restrictions and fell by 26% to £2.0m [2019–20: £2.7m]. Legacies fell by 7% to £8.3m in the year (2019–20

The last day of trading for our shops was 20th March 2020. Retail returned from the first lockdown with a phased re-opening programme from June – October 2020. On returning, whilst footfall and trade were higher

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Financial review (continued)

than anticipated, like for like trade was down 20% on 2019–20 performance due to a reduction in consumer confidence. The announcement of a further lockdown commencing in November, followed by tier restrictions in December and a third lockdown in January 2021; meant that across the year all retail shops were only open for a total of 26 weeks. In addition to this in the period from June – October 2020 trading was at limited capacity due to phased shop re-openings.

The retail closures and loss in consumer confidence as a result of the pandemic had serious and significant consequences on both retail income and the net contribution that retail was able to provide. Income was down £41.8m against the prior year, leading to a deficit contribution position of £26.0m in the year (2019–20 surplus contribution of £0.7m).

Our cost base was adjusted where possible to mitigate the lack of income; however by its nature much of the cost base in retail is fixed. We took steps early in the pandemic to manage the financial risks caused by the closure of retail, and engaged in negotiations with landlords across our retail estate. During the year we secured a number of short term rent concessions as a direct consequence of the Covid-19 pandemic. We also utilised the Coronavirus Job Retention Scheme (CJRS) and the Retail, Hospitality and Leisure Grant Fund (RHLGF), which are included within income from donations and legacies in the Statement of Financial Activities.

Covid-19 support funding

NHS England awarded funding to allow the hospices to make available bed capacity and community support; and to provide support to people with complex needs in the context of the Covid-19 pandemic. This funding was provided to Sue Ryder from April to July 2020 and November 2020 to March 2021; and provided charitable activity income of £20.8m in the year. To facilitate certainty of cashflows during the pandemic, Commissioners, NHS England and NHS Improvement

ensured that statutory funding was paid promptly. From April – June 2020 prior to the introduction of a national grant structure, we were able to claim costs relating to additional infection control directly from Commissioners and local authorities. Thereafter in England we received Covid-19 support through the Infection Control Fund (from June 2020), the Rapid Testing Fund (from January 2021) and the Workforce Capacity Fund.

From July 2020 in England, PPE was made available via government supplies direct to our services. In Scotland

Income

----- Start of picture text -----
£22.50m
20.8
£20.25m
£18.00m
£15.75m
£13.50m
£11.25m 10.8
£9.00m
£6.75m
£4.50m
3.3
£2.25m 1.3
0.7
0.0 0.0 0.0
£0.00m
NHSE Healthcare CJRS RHLGF
grants
2020–21 2019–20
----- End of picture text -----

we received provider payments to cover Covid-19 infection control costs, PPE and rapid testing. Across Healthcare in England and Scotland during the year, the total income provided in response to the pandemic was £1.3m.

The CJRS support measure provided by the Government was utilised throughout the year. A significant number of our colleagues, particularly in retail, were furloughed or flexi furloughed. This allowed grant claims of up to 80% of the salary for hours not worked, up to a maximum of £2,500 per colleague. Sue Ryder continued to cover employer national insurance and pension contributions for hours not worked. The CJRS provided income of £10.8m in the year, included within income from donations and legacies.

that. This allows an entity to claim up to a maximum of £9m in government grants above the other allowances of £1.9m that are available under the subsidy control measures. The RHLGF grants have provided total income of £3.3m in the year.

Expenditure

Total expenditure (excluding retail) reduced by 3.8% to £55.1m in the year [2019–20: £57.3m]. Wages and other staff-related costs are our largest cost. These have reduced 2.5% in the year due to restructures that occurred at the end of 2019–20 and are net of increases in the national living wage and contributions to workplace pensions. The closure of our Nettlebed Centre in March 2020 has generated cost savings in our end-of-life care services this year; whilst the expansion and opening of our Neurological Care Centres (Dee View Court (Aberdeen) and Lancashire) has resulted in a significant increase in expenditure. Our exit in April 2020 from the Angus contract in Homecare Scotland generated a reduction in costs. The reduction in fundraising expenditure is due largely to restrictions placed on face to face public fundraising events. Note that included in end-of-life care is expenditure of £0.43m relating to running the Bereavement Service (2019–20: £0.33m).

A number of government grants have been made available to provide support for businesses throughout the pandemic. During the year, the Retail, Hospitality and Leisure Grant Fund has been utilised to support the charity’s retail operations. The level of grants that can be claimed is subject to subsidy control measures which set a limit on the amount that an entity can claim. The Trustees have given due consideration to the guidance provided by The Department of Business, Energy and Industrial Strategy (BEIS) concerning entitlement to these grants. A full review was performed to ensure that the ‘turnover’ and ‘uncovered fixed cost’ tests have been met during the period that the guidance relates to. It is therefore considered that a strong case exists to make use of the Covid-19 special allowance available to the charity, and income recognition in these financial statements is reflective of

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Expenditure
£30m 27.7
2020–21 2019–20
25.3
£25m
19.8
£20m
16.7
£15m
£10m
5.0 5.4 5.4
£5m 3.2
1.3 [2.4]
0.1 0.1
£0m
End-of-life care Neurological care Homecare International Fundraising Support
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Financial review (continued)

Reserves policy

At 31st March 2021, total funds (fixed and current assets including property less liabilities) stood at £64.9m [2019–20: £53.8m]: £8.1m [2019–20: £6.1m] was restricted for specific purposes and £11.3m [2019–20: £12.4m] was property revaluation reserves (representing the estimated increase in the current values of our freehold care centre assets over their historic values).

Sue Ryder holds ‘liquid’ free reserves in order to maintain services in the event of a temporary downturn in income and to invest in new opportunities as they become available. The charity depends on a number of diverse but fluctuating income streams in order to fund its services. In assessing the appropriate level of reserves that we should maintain, the Trustees perform a risk based review of our income and expenditure. Taking into account the diverse nature of our income streams, the levels of asset backing, current and future investment and borrowing projections, the growing demand for the services which we provide, and the general and specific market conditions in which we operate; they are of the opinion that an appropriate level of liquid free reserves (held as cash and investments) would be in the range of £11–17m for the year 2020–21. Significant financial uncertainties remain on the economic outlook as a result of the Covid-19 pandemic; and the continued challenges that may arise could place further pressure on reserves as the new financial year progresses. In response to the challenges and risks caused by the pandemic, Trustees are currently reviewing the target level of reserves. Maintaining a healthy reserves position as we navigate these ongoing challenges will ensure that Sue Ryder remains a going concern.

At year end, our liquid free reserves were £23.6m, comprising £13.6m cash at bank and £10.0m of portfolio investments [2019–20: £12.5m comprising £4.4m cash and £8.1m of investments]. The increase

in the year was primarily due to the provision of government funding in response to the ongoing pandemic and an increase in the value of our investment portfolio. Whilst investment values fluctuated at the very start of the pandemic, during the year we have seen an improved performance of the stock markets.

Investments

Sue Ryder investments are managed on our behalf by CCLA Investment Management Limited and held in the COIF Charities Investment Fund. Investments are distributed in a range of asset classes, the details of which are included below. The Council of Trustees sets the overall performance and ethical parameters under which our investment managers operate.

The primary objectives of our investment portfolio are to:

The return on our portfolio over the financial year was a positive return of 23.0% (2019–20: negative return of 6.7%). At the year end, all consolidated and charity investments were held in the COIF Charity Fund.

The distribution of the COIF Charity Investment Fund as at 31 March 2021 was:

Overseas equities 67.23%
UK equities 9.89%
Infrastructure & Operating Assets 9.12%
Contractual & Other Income 2.68%
Property 3.90%
Fixed Interest 0.34%
Private Equity & Other 2.01%
Cash 4.83%

Investment restrictions

The Trustees have declared that the charity will not directly invest in armaments, tobacco or pornography, as these sectors are considered not to be in the best interest of the charity, its beneficiaries and the objects of the charity.

Going concern

The charity’s financial performance for 2021–22 to date has been positive. We have continued to receive government support by utilising the CJRS, Healthcare grants; the RHLGF ‘restart’ grant and through business rate concessions.

In early June we launched our ‘A room full of love’ fundraising campaign which is currently running alongside our ongoing local fundraising activity.

We have continued the tighter cost and cashflow management controls that we implemented at the start of the crisis in order to mitigate the impact of reduced income and financial economic uncertainty caused by the pandemic and continue to closely monitor the cash flow forecast.

The ongoing pandemic has made financial forecasting difficult but we continue to navigate the challenges and have prepared a detailed forecast for the remainder of 2021–22 and beyond.

This forecast and our ongoing assessment of our liquid reserves position forms the basis of our assessment of going concern. Our forecasts take into account the most recent Government announcements on the easing of restrictions, and whilst we have not forecast any further lockdown restrictions, we have factored in a slow return to face to face fundraising events.

In assessing the going concern of the charity, cashflows have been prepared for 12 months from the date of sign off and our forecast has been stress tested to reflect a number of different scenarios around the potential future impact of the pandemic on our operations and the economy. In running a number of different scenarios on our key forecast assumptions, we have included an extreme scenario which models a combination of further national lockdowns in the autumn/winter and reductions in legacy and other fundraising income. As there is little or no correlation between these income streams, this scenario is considered to be very unlikely. We have also given consideration to any potential material uncertainty that could place significant doubt over the use of the going concern basis of accounting for a minimum period of 12 months from the date of approval of these accounts.

Whilst the scenarios modelled would have a significantly adverse financial impact, all scenarios demonstrate that we remain in a cash positive position. There are also a number of further mitigations that would be available to us over and above those already modelled, including:

Based on our forecasts and the reverse stress testing scenario analysis, the Trustees have not identified any material uncertainties that would place doubt relating to going concern and therefore consider that the going concern basis of accounting is appropriate in the preparation of the accounts.

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Strategic report

Risk matrix

Principal risks and uncertainties

The Council of Trustees has responsibility for ensuring that there is adequate and effective risk management and a system of internal controls in place to manage Sue Ryder’s major risks and support the achievement of our strategic objectives.

Processes in place to manage the key risks that could affect Sue Ryder’s ability to achieve its objectives include the following:

Information relating to the principal risks to Sue Ryder’s objectives and how these are managed is set out on the next few pages.

Principal risks

Covid-19 pandemic

Throughout 2020–21, Sue Ryder faced an ongoing risk that the pandemic could adversely impact the continuation of the charity in its current form, leading to the charity no longer being able to carry out its charitable objects, resulting from a combination of all or several of the following:

Key controls and mitigating factors

Covid-19 recovery

As we continue to navigate the pandemic and adjust to new ways of working, we face a number of ongoing risks, including:

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Risk matrix (continued)

Principal risks Principal risks Key controls and mitigating factors Key controls and mitigating factors Key controls and mitigating factors Key controls and mitigating factors Key controls and mitigating factors

Workforce: culture and environment There is a risk that the culture/ environment of Sue Ryder does not enable, attract and retain the workforce that is needed to enable delivery of the five year plan.

Workforce: capability and skills

There is a risk that the organisation’s capability and skills may not be ready to deliver the scale of the five year plan.

Information security and data protection

A successful cyber-attack disables the charity’s IT systems and/or leads to a data breach, resulting in fines and negative publicity.

Sue Ryder Healthcare Assistant, Beverley.

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Fundraising

Fundraising statement

1. Sue Ryder’s approach to fundraising activity, and in particular whether a professional fundraiser or commercial participator was used.

Our fundraising teams work tirelessly to raise money in a number of different ways – through gifts left in Wills, corporate fundraising with local companies and national partners, and soliciting gifts from trusts and foundations to the Sue Ryder lottery and our ‘Friends of Sue Ryder’ regular giving scheme. In addition, our Sue Ryder hospices, and our neurological care centres in Aberdeen and Lancashire, each have their own fundraising teams working within the local community to raise funds and awareness of our work.

2. Details of any voluntary fundraising scheme or standards which the charity or anyone fundraising on its behalf has agreed to. This includes the regulation scheme established by the Fundraising Regulator.

Sue Ryder complies with current regulations and best practice set out by regulatory and professional membership bodies such as the Charity Commission, the Fundraising Regulator, the Chartered Institute of Fundraising and the Direct Marketing Association. We are registered with the Fundraising Regulator and we are committed to adhering to the Code of Fundraising Practice and the Fundraising Promise.

3. Any failure to comply with a scheme or standard cited.

Due to the nature and logistics of delivering fundraising across multiple sites, we are aware that the potential for breaches of fundraising compliance exists. We manage and minimise these risks through training and inductions for new starters, quality checking and audits, implementing compliance policies and having

compliance champions in each area. We proactively engage and work with the Fundraising Regulator and other professional bodies to ensure that any concerns raised are addressed as a priority.

There were three identified breaches of the Code of Fundraising Practice in 2020-21. Two of these related to the behaviour of third party face to face fundraisers, and these were followed up with the third party. The third breach related to a delay in the counting and banking of a cash donation. No complaints have been escalated to the Fundraising Regulator.

4. Whether and how the charity monitored

fundraising activities carried out on its behalf.

At Sue Ryder we acknowledge that the use of third parties can have a significant impact on our ability to raise funds and support our work, as well as improve efficiency and reduce cost. However, it is imperative that we have the right safeguards in place when working with suppliers and those who deliver fundraising work on our behalf to protect our reputation, our supporters, service users, their families and the financial position of Sue Ryder.

Sue Ryder requires that any agency or third party that we work with complies with data protection legislation as prescribed by the Code of Fundraising Practice, including the requirements of the Telephone, Mailing and Fundraising Preference Services. Details of how we do this are set out in our Privacy Policy.

We follow a robust procurement process when recruiting third parties to work on our behalf, making sure we apply appropriate due diligence and contracts for this work. We work closely with these third parties, regularly reviewing their work against performance targets and compliance with fundraising regulation, including the Code of Fundraising Practice. This ensures that we are delivering the best value for

----- Start of picture text -----
Sue Ryder Nurse, Jenny.
----- End of picture text -----

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Fundraising (continued)

money for the charity and our supporters. We have organisational policies that outline what is expected at each stage of a relationship with a third party.

All third party personnel adhere to a code of conduct when engaging with supporters and potential supporters on our behalf. That means they should be polite, respectful and aware that anyone can be in a vulnerable situation – even if it is not immediately apparent. It also means that nobody should be pressurised, or made to feel guilty for not supporting us. They make it clear when communicating on our behalf how a person can register feedback or a complaint directly with the charity. This is also highlighted in communications sent on our behalf by third parties and in our donor pledges on the Sue Ryder website.

5. How many complaints the charity or anyone acting on its behalf has received about fundraising for the charity.

Sue Ryder received a total of 33 complaints about fundraising in the 2020 –21 financial year. This was a 46% decrease in complaints received when compared to the previous year, largely aligned with the areas where there had been a reduction in fundraising activity. For example, our private site fundraising, volunteer fundraising, and events fundraising activities were significantly reduced due to the pandemic, and this was mirrored by receiving fewer complaints in relation to these activities. This year we also shifted our public fundraising activities to take a more digital-first approach. We sent fewer campaigns via the post to our supporters and we saw this matched with fewer complaints. However, despite significantly increasing our email marketing activity, we saw a large reduction in complaint numbers in this area too. This could be a result of people across the nation adopting greater use of digital communication channels due to the pandemic, and therefore being happier

to be communicated with in this way. On average, we received fewer than three complaints a month about fundraising, compared with five per month the previous year. 97% of complaints were responded to within ten days of receipt. No serious complaints were received and therefore nothing was escalated to the Trustees in this financial year.

We report on the number of complaints we receive in regards to fundraising each year to the Fundraising Regulator. We also publish an internal complaints report that is shared with our Senior Leadership Team (SLT), reviewing complaints and suggesting actions and learnings taken from them that have positively impacted on our work. The charity has a Fundraising Complaints Policy which outlines how complaints should be dealt with and when serious complaints should be escalated to our Senior and Executive Leadership teams and Trustees. This policy is included on our intranet, highlighted quarterly in our Fundraising Operations team newsletter and in our ongoing training on fundraising compliance. Our donor promise on the Sue Ryder website highlights how an individual can make a complaint and how they can contact us to do so.

6. What the charity has done to protect

vulnerable people and others from unreasonable intrusion on a person’s privacy, unreasonably persistent approaches or undue pressure to give, in the course of or in connection with fundraising for the charity. Here the charity might report whether it has signed up to receiving suppressions under the Fundraising Preference Service.

As part of our Ethical Fundraising Policy the charity employs a code of conduct which sets out key principles and behaviours that we expect all Charity Personnel to adhere to, including those employed via a third party. It contains instruction to fundraisers

to take all reasonable steps to treat donors fairly and make an informed decision, taking into account the needs of any potential donor who may be in a vulnerable circumstance or require additional support. It also includes specific instruction not to engage in fundraising that is an unreasonable intrusion on a person’s privacy, unreasonably persistent, or places undue pressure on a person to donate. We place age limits on who can be approached with a fundraising ask by our canvassers to protect minors and older people who may be vulnerable. Our Lottery team works with the Gambling Commission to ensure we adhere to the law and offer self-exclusion for individuals who may have issues with gambling.

Sue Ryder has created a Vulnerable Supporters Policy to ensure all staff have guidance in this area and are comfortable in recognising a person in vulnerable circumstances. All of our direct marketing and thank you correspondence contains clear instructions as to how a supporter can easily opt out of receiving further communications from the charity should they choose to do so. Sue Ryder has signed up to the Fundraising Preference Service and to date has received and actioned 38 requests via this channel, three of which were in the financial year 2020–21. We have seven fundraising pledges published on our website and shared with colleagues, which lets our supporters know how we expect our staff to behave.

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Energy and carbon report

We are required to report publicly on our UK energy use and carbon emissions under the Government’s Streamlined Energy and Carbon Reporting (SECR) scheme. This new requirement has been implemented by the Department for Business, Energy and Industrial Strategy (BEIS).

Company information

Operational scope

Sue Ryder is a private limited company, incorporated in the UK (00943228). Registered address: Kings House, King Street, Sudbury, Suffolk, CO10 2ED.

Measurements include all mandatory scope 1 and 2 emissions, and the scope 3 emissions relating to electricity transmission and distribution losses and transport from private vehicles used for business purposes. Estimates have been made with the collation of data.

Reporting period

The reporting period coincides with the financial year of 1st April 2020–31st March 2021.

Exclusions

There are no data exclusions in this reporting period.

Business travel

The use of online conferencing is encouraged for internal meetings. Area managers plan their shop visits based on location to minimise overall travel miles. Shops managers covering for colleagues in other stores is kept to a minimum.

Base year

The base year is April 2019 – March 2020 and the gross reported emissions during that period were 5,971 tonnes of CO2e. The gross emissions for the current period show a significant reduction (54%) regarding the base year, which is mainly due to the Covid-19 restrictions during 2020.

Activities relating to travel are limited to company cars and employee-owned vehicles for business use.

Quantification and reporting

Target setting and responsibilities

methodology

The target is to reduce gross scope 1, 2, and 3 emissions in tonnes of CO2e per hundred ft2 of retail floor used by 2% per year. The reduction of the performance of the current period against the retail target was 53%.

HM Government Environmental Reporting Guidelines: including streamlined energy and carbon reporting guidance (March 2019) has been used for the collation of data sources and reporting of emissions. UK Government GHG Conversion Factors for Company Reporting has been used for the reporting of emissions, using the 2020 version.

The target set for the third year is to keep the emissions at least 4% lower than the base year, as this year was a complete anomaly with closed shops and offices and it would be difficult to maintain the present level of emissions once Covid-19 restrictions finish and the business activity is restored. Activities to reduce emissions will be investigated in relation to business activities, with any pilot schemes being used to understand the improvements achievable.

Organisational boundary

The financial boundary of the business has been used to determine the reporting boundary.

Intensity measurement

The reporting metric chosen is gross scope 1, 2, and 3 emissions in tonnes of CO2e per hundred ft2 of retail floor, The metric is based on the retail shops as they represent more than 90% of the total number of sites, and therefore most of the emissions.

The intensity measurement will be reported each year, with a comparison made against the previous year’s performance.

Carbon offsetting

Carbon offsetting from electricity purchased under green supply contracts started in October 2020, has been considered in this report.

Energy efficiency actions

In the financial period, April 2020 to March 2021 Sue Ryder has helped to minimise energy consumption by:

Replacement equipment

Where equipment has required replacement due to failure, the new equipment is, where possible, the most efficient available for the application. This has included the fitting of LED lighting in place of fluorescent and incandescent units, heating controls with start optimisation technology integrated and air conditioning controls with built in time schedules, as well as low energy point of sale and IT equipment.

Staff awareness

Having identified that the staff in a retail store can change over time due to the nature of volunteer

availability, some stores have placed instructions on various electrical items such as light switches and heating thermostats, advising them to switch off, or providing instructions on the best operating parameters.

Travel minimisation

The use of technology is being adapted where possible and this was expanded during the Covid-19 pandemic. With increased mobile technology and ‘work at home’ practices being implemented, online meetings are encouraged where the necessity for face-to-face interaction at a central location is not essential.

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Energy and carbon report (continued)

Scope 1 CO2e (tonnes) % estimated Specific exclusions, % April 19 – March 20 April 20 – March 21
Natural Gas 0 None 1,057.6 1,119.7
Company-owned transport 0 None 533.1 201.3
Refrigerant gases
Total
Scope 2 CO2e (tonnes)		 0 None None 0.0
0 None 1,590.7 1,321.0
% estimated Specific exclusions, % April 19 – March 20 April 20 – March 21
0 None 2,799.5 1,243.5
0 None 2,799.5 1,243.5
Specific exclusions, % April 19 – March 20 April 20 – March 21
ElectricityT & D Losses 0 None 237.7 106.9
Private travel for business purposes 0 None 1,342.7 95.7
0 None 1580.4 202.6
5,970.6 2,767.1
IntensityMetric Measure (hundred ft2of retail floor) 5,326.5 5,295.1
IntensityMetric (Gross emissions) tCO2e/hundred ft2of retail floor 1.121 0.523
Energy consumption
Specific exclusions, %		 April 19 – March 20 April 20 – March 21
kWh
As above		 24,452,677 12,664,265
Carbon offsets - EON 0 462.2
Total CO2e Scope 1,2,3 Net emissions (tonnes) 5,970.6 2,304.9
IntensityMetric (Net emissions) tCO2e/hundred ft2of retail floor 1.121 0.435

Emissions Summary, Sue Ryder Streamlined Energy & Carbon Reporting.

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Structure, governance and management

Structure, governance and management

Structure, governance and management

Objects of the charity

The main activities undertaken in relation to the purposes of the charity are described in the Foreword on page 7.

Our objects are as follows:

  1. To provide or assist in the provision of care for persons suffering from any serious or permanent disability, incapacity or illness, whether physical or mental

  2. To relieve the needs of those people potentially excluded from society by reason of old age, ill health (physical or mental), disability, poverty, or criminal history, and to assist their integration into society for the public benefit

  3. To advance the education of the public about the causes of disability, incapacity or illness, whether physical or mental, and the means of relieving those needs

  4. To relieve the mental and physical suffering of persons affected by bereavement or loss, including by the provision of counselling and support for such persons.

Sue Ryder is comprised of Sue Ryder Charity (the main operating charity through which all charitable activity is undertaken), Sue Ryder Direct Limited (a trading company which sells new goods and operates the donated Gift Aid scheme) and Sue Ryder Lottery Limited (a company which runs the Sue Ryder Lottery and holds a gambling license to do so). Woburn Property Investments Limited and Duchess of Kent House Charity are also subsidiaries of Sue Ryder Charity, and are both dormant. Within the next 12 months, the Trustees intend to wind up the Duchess of Kent House Charity (DOKH). This means that the financial statements for DOKH were prepared in line with FRS 102 but not as a going concern.

Council of Trustees

The Council of Trustees is responsible for the overall governance of Sue Ryder. Trustees are appointed by Council for three years and can be reappointed for further terms of three years up to a maximum of nine years.

Responsibility for the day-to-day running of the charity is delegated to the Chief Executive. The Chief Executive is supported by a group of executives and senior managers. The Chief Executive attends all Council meetings and other executives attend as required.

The Nominations Subcommittee oversees the recruitment, appointment, induction and training of new Trustees. Trustees are recruited following open advertising or by using the services of external advisors. Appointment is based on merit against objective criteria and taking into account the benefits of diversity on the Board. In recruiting new Trustees, we seek to maintain a balance of skills and experience appropriate to the charity’s activities. The CEO and Chair take responsibility for ensuring Trustees receive a corporate induction, including access to organisation documents and those relevant to the committees on which they sit, as well as an online pack of up-to-date strategic information. They are taken through the legal requirements of their role and, on starting, one-to-ones with Board colleagues are arranged in a timely manner. Trustees may also attend NCVO induction online.

The Council of Trustees meets five times a year to review the performance of the charity both financially and in meeting its charitable objectives. To discharge its governance responsibilities effectively, Council has created a number of subcommittees (Trustees form the membership with managers in attendance) which have delegated powers from the main Council of Trustees.

For the year ending 31st March 2021 these subcommittees and their remits were:

Council review

The Council of Trustees supports the principles of good governance set out in the Charity Governance Code and uses the code to evaluate its effectiveness. The performance of individual Trustees is assessed each year. The charity completed the Governance Code Assessment against the Charity Governance Code and did not identify any areas of departure from the Code. The Charity Governance Code has been updated and expanded in some areas and has added a new principle in relation to Equality, Diversity and Inclusion. The charity will be assessing itself against the updated Code and identifying areas for improvement and actions required. An external board review was completed in July 2021, the results of which are being taken forward by the new Chair.

Governance, risk management and internal controls

The Trustees regularly review the risks faced by the charity to develop proportionate controls and deliver on the charity’s strategic aims. The main risks being monitored include:

Trustees receive regular performance information by way of financial reports and analysis, cash flow forecasts and key performance indicators.

Trustees receive assurance from internal assurance providers which have been assessed as fit for purpose. These are the Quality and Governance team, which reports to the Health and Social Care Subcommittee, and Internal Audit, which reports to the Finance, Audit, Risk and Commercial Subcommittee (previously known as the Audit, Risk and Commercial Subcommittee).

Regular audits are undertaken from a risk-based annual audit plan as approved by Subcommittee. Progress on audit and risk activity and implementation of management action plans are reported on at meetings of the Finance, Audit, Risk and Commercial Subcommittee.

Financial risk management

Internal controls over all forms of income, assets, commitment and expenditure continue to be refined to improve efficiency. Performance is monitored and appropriate management information is prepared and reviewed regularly, together with proposed corrective actions by both the Chief Executive and the Trustees. The charity currently produces an annual budget and reports monthly against that budget, requiring senior management to comment on variances and outline corrective action. Updated financial forecasting is undertaken during the year to reflect changes in the operating environment and their impact on income and expenditure.

During the year to 31st March 2021, the charity’s

planning and reporting processes were represented through the charity’s five-year rolling planning process, which supports the charity’s long-term strategic goals.

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Structure, governance and management

Structure, governance and management (continued)

Internal audit

Our Internal audit function implements an approved internal audit plan of work to cover the major risks identified by the Trustees and management. As a result of the pandemic, the audit programme was paused for five months and the audit plan was reviewed with some audits being rescheduled into the next audit year. Audit results and progress by management on the implementation of the audit recommendations are presented to the Finance, Audit, Risk and Commercial Subcommittee.

Mazars continue to act as a cosource partner on certain internal audit assignments, with a focus on specialised areas such as IT.

Management and policies

Grant making

Sue Ryder currently provides a £20,000 grant each quarter to support the ongoing work of an independent Sue Ryder organisation in Albania. Sue Ryder does not provide grants to any other organisations.

Foreign exchange

The charity’s trading subsidiary, Sue Ryder Direct Limited, purchases new goods from overseas suppliers that require payment in US dollars. These US dollars are purchased at the spot rate to satisfy short-term contractual commitments.

Policy and practice on the payment of creditors

The charity complies with best practice and always endeavours to meet the payment terms agreed with suppliers through our procurement and tendering process. The ratio of amounts owed to trade creditors at the year-end to purchases during the year was 6.14% [2019–20: 5.2%].

Pensions

Sue Ryder operates the following pension schemes:

• The Sue Ryder Care Pension Scheme (1992) The defined contribution group pensions scheme with Equitable Life was sold to Utmost in 2019 and was wound up on 22nd March 2021, following the transfer of all members funds out of the Scheme. The Scheme Trust has been dissolved and following the reporting of this event to the Pensions Regulator and HMRC, the Scheme Trustees have now been relinquished of their responsibilities.

Sue Ryder contributes to individual personal pension plans, under a group personal pension plan operated by Royal London.

Sue Ryder provides an auto-enrolment scheme through The People’s Pension.

Sue Ryder also contributes to a defined benefit contributory pension scheme on behalf of certain former National Health Service employees. As it is not possible to identify the surpluses or deficits that relate to Sue Ryder, this scheme is treated as a defined contribution scheme under FRS102.

Employment of disabled persons

Sue Ryder is committed to a policy of recruitment and promotion on the basis of aptitude and ability without negative discrimination of any kind. Management actively pursues both the employment of disabled persons whenever a suitable vacancy arises and the continued employment and retaining of employees who become disabled whilst employed by the charity. Where a current employee or volunteer becomes disabled due to illness or injury, the charity, wherever possible and reasonable, will provide assistance with rehabilitation, adaptation to premises, modification of equipment, provision of special aids, job restructuring, retraining and/or redeployment opportunities.

Sue Ryder also has a People with Disabilities network group which feeds into our Equality, Diversity and Inclusion work. The group aims to raise awareness amongst all colleagues of the breadth of impact that having a disability can have, and to encourage our staff and volunteers with disabilities to come forward and gain support in a safe space.

Gender pay gap

At Sue Ryder, our mean gender pay gap is 0.09%. This shows that, on average, the hourly rate men are paid is just fractionally higher than the rate women receive. This compares well to the national average of 14.6%. Our median gender pay gap is -3.83%. This is the difference if we line up all salaries and take the middle point and shows that the median pay point is lower for men. The national figure for this is 15.5%, so we compare very favourably.

We have around 2,900 staff based across the UK and the gender split is 81.8% women and 18.2% men. Although our pay gap figures are low, we still strive to eliminate any gender bias.

Remuneration policy

Our reward policies ensure that the charity can attract, retain and motivate its staff by offering and maintaining appropriate remuneration and benefits. This includes both financial and non-financial rewards and recognition.

We recognise and reward excellent performance through merit-related pay awards, although the uncertainty created by Covid-19 meant that these were paused for the 2020–21 financial year. A 2% pay award was given to Healthcare staff in recognition of their dedication and commitment to delivering care to our service users throughout the national lockdowns and the very worst stages of the pandemic. We determine our market position through

benchmarking. It is our aim to pay and provide employee benefits at the market midpoint; that is the average of similar employers in the locality of where the job is based.

We ensure similar treatment for comparable jobs and maintain appropriate differentials between different roles and different levels of performance. We take a structured approach, linking pay to job level or grade and job function as the job market requires. Underpinning pay at Sue Ryder is a global grading system.

We aim to encourage a culture where all people feel included and valued for the unique contribution they bring to our organisation. We seek to attract and engage people from a diversity of backgrounds, cultures, ages and abilities who bring a broad range of knowledge, skills and experience. We do not discriminate on the basis of sex, age, disability, race, religion or belief, sexual orientation or any other protected characteristic. We encourage and reward innovation, achievement and behaviours through recognition schemes, appraisal criteria and skills frameworks. Reasons for reward decisions are clearly communicated to those concerned.

Employee/volunteer involvement

Information about aims and activities is disseminated to all staff and volunteers through management briefings, extended use of our intranet, email and printed publications.

We also run annual surveys for both staff and volunteers to gather feedback on people’s experiences of working and volunteering at Sue Ryder. As well as local improvements, feedback from previous years sparked the launch of our ‘We are Sue Ryder’ culture development programme and led to the creation of the Sue Ryder Knowledge Academy. We’ve also improved our volunteer experience and developed new volunteer communications as a result of volunteer

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Structure, governance and management

Structure, governance and management (continued)

feedback, including a monthly e-newsletter and Facebook group. The results influence the way we move forward with our strategy and help to make Sue Ryder a great place to work and volunteer.

Auditors

BDO LLP was automatically reappointed as auditors of the charitable company and group.

The Trustees confirm that, so far as they are aware, there is no relevant audit information of which the charity’s auditors are unaware. They have taken all the steps that they ought to have taken as Trustees in order to make themselves aware of any relevant audit information and to establish that the charity’s auditors are aware of that information.

Trustees’ responsibilities

The Trustees are responsible for preparing the Annual Report (including the Strategic report) and the financial statements in accordance with applicable law and regulations. Company law requires the Trustees to prepare financial statements for each financial year in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and charity and of the incoming resources and application of resources, including the income and expenditure, of the group for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity’s transactions and disclose with reasonable accuracy at any time the financial position of the charity, and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Financial statements are published on the charity’s website in accordance with legislation in the United Kingdom governing the preparation and dissemination of financial statements, which may vary from legislation in other jurisdictions. The maintenance and integrity of the charity’s website is the responsibility of the Trustees. The Trustees’ responsibility also extends to the ongoing integrity of the financial statements contained therein.

Public benefit

The Council of Trustees has given regard to the legislative and regulatory requirements for disclosing how its charitable objectives have provided benefit to the public. The Trustees confirm that they have complied with their duty under the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission in determining the activities undertaken by the charity. This report outlines how our achievements during 2020–21 have benefited the public, either directly or indirectly.

The Trustees’ Annual Report, incorporating the Strategic report and Directors’ report, was approved on 16 December 2021.

Signed

Rima Makarem Chair of Trustees

Sue Ryder Nurse, Josh.

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Structure, governance and management

Legal and administrative details

For the year ended 31 March 2021

Status

Sue Ryder is a registered charity and also a private company limited by guarantee, incorporated on 28th November 1968 (last amended on 4th December 2019) and registered as a charity in England and Wales on 17th January 1996 and in Scotland on 14th May 2008.

Governing document

Sue Ryder was established under a memorandum of association and is governed under its articles of association, which establish the objects and powers of the organisation.

Company number

00943228

Charity number

1052076

Scottish charity number

SC039578

Registered office

King’s House, King Street, Sudbury, Suffolk CO10 2ED

Principal office 183 Eversholt Street, London, NW1 1BU

Royal Patron

Her Majesty The Queen

Council of Trustees

Unless otherwise indicated, the Trustees below were in post from 1st April 2020 to 31st March 2021. Membership of subcommittees is also indicated.

Neil Goulden (to 15 July 2021)

Chair of Trustees

Director of Sue Ryder Direct Limited Director of Sue Ryder Lottery Limited

Neil spent 13 years as Group Managing Director, Chief Executive, Chairman and Chairman Emeritus of the Gala Coral Group, who were a major corporate sponsor of Sue Ryder. He stepped down from the company in 2014. Neil is currently Chair of Gamesys Group PLC.

Neil’s key interests are health, housing and education. He was Chairman of Clarion Housing Association. He is also pro Chancellor and Chair of Governors at Nottingham Trent University and Chair of Trustees at Ambitious about Autism. He is a Companion of the Chartered Management Institute.

Subcommittees: Nominations

Rima Makarem (appointed 19 May 2021) Chair of Trustees (from 15 July 2021)

Rima trained as a scientist before going on to hold senior roles within the global pharmaceutical sector. She is the Chair of Queen Square Enterprises Ltd, an independent healthcare provider based in London, as well as Chair of Bedfordshire, Luton and Milton Keynes Integrated Care System (BLMK ICS).

Rima is a Lay Council member for the General Pharmaceutical Council, and is nearing the end of a role as External Commissioner at the House of Commons Commission, working closely with the Speaker and the Leader of the House. She is also completing her term at NICE, where she has been the senior independent director and audit chair for the last five years.

Margaret Moore

Vice Chair of Trustees

Chair of People and Remuneration Subcommittee Director of Duchess of Kent House Charity

Margaret is Vice-Chair of the Fundraising Regulator, the independent regulator of charitable fundraising in England, Wales and Northern Ireland. She is a Trustee of the Royal Voluntary Service and a Trustee of Great Britain Wheelchair Rugby, the national governing body of the sport. She was Head of Competition and Regulatory Practice at city law firm Travers Smith LLP and a Partner in the firm for over 20 years. She is also a Trustee of Prior Park Schools – a family of schools comprising Prior Park College (Bath), the Paragon junior school (Bath) and Prior Park school (Gibraltar)

Subcommittees: Health and Social Care;

Finance, Audit, Risk and Commercial; People and Remuneration; Nominations

Guy Boersma (appointed 1 September 2020)

Guy Boersma is a Social Enterprise CEO and a creative collaborator on social change. Currently CEO at Kent Surrey Sussex Academic Health Science Network, he has led its establishment and rapid growth. He also serves as Healthcare Denmark’s UK Ambassador. Guy brings a wealth of health & care and public service experience from Central Government and closer to the public service frontline. He convenes creative partnerships, collaborates generously with partners whilst working together with them on systems change, effective joint working and increasing impact.

Subcommittees: Health and Social Care

Katherine Buxton

Katherine currently works as a Consultant in Palliative Medicine at Imperial College in London. Since her appointment in January 2012, she has developed and led on numerous work streams focused around her interests of improving planned care pathways, the electronic co-ordination of care across healthcare settings and enhanced supportive care in advanced liver disease.

Katherine was appointed as Clinical Lead for End of Life Care for Imperial College in July 2017. Since her appointment she has led on several key projects, including improving the rapid discharge pathway in line with patient preferences, the introduction of Coordinate My Care (CMC) and improvements related to CPR and treatment escalation decisions. Katherine is also integrated with both the North West London and London End of Life Care Networks and is currently chairing a flow coaching programme to improve endof-life care across the settings.

More latterly, Katherine has been appointed as a Medical Examiner for Imperial College.

Subcommittees: Health and Social Care

Rima joined Sue Ryder as a Trustee on 19 May 2021, ahead of taking up her new position as Chair of Trustees from 15 July 2021.

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47

Structure, governance and management

Structure, governance and management

Legal and administrative details (continued)

Jeremy Chataway

After qualifying in medicine at Cambridge and Oxford Universities, and general medical training in London, Jeremy specialised in neurology over an eight-year period with posts in Edinburgh, Cambridge and the National Hospital for Neurology and Neurosurgery (NHNN) in London. He took up the post as a Consultant Neurologist at the NHNN in 2001. He is fully familiar with managing diverse conditions such as dementia, motor neurone disease and stroke, at all stages of disability, with a focus on multiple sclerosis (MS). As Professor of Neurology, he combines an NHS clinical role in MS with an academic role in clinical trials and their design, again predominantly in MS.

Subcommittees: Health and Social Care

Linda Goodacre (appointed 1 September 2020)

Linda has worked in property for over 35 years, most of that time has been spent working in national and multinational retailers where she has dealt with all types of property including logistics, manufacturing, residential, research, leisure, hospitality and of course all types of retail.

Linda has been a Fellow of the RICS since 2011. She joined the Higher Education sector in April 2018, as Director Estates & Facilities at the University of Nottingham, which is her home town. Linda looks after the estates capital programme, all facilities management and all catering and hospitality. The University has one of the largest estates in the sector and Linda manages a team of over 1100 people.

In her time in retail she has been a representative of many organisational bodies including CBI, British Retail Consortium, The Property Managers Association and BITC, Business In The Community where she has undertaken extensive lobbying.

Sue Hopgood

With over 30 years of experience gained across NHS organisations and the wider public sector, Sue is currently Managing Director of the Cross Sector Leadership Exchange, a community interest company that brings together leaders from different sectors to challenge and develop their leadership practice. Sue’s expertise lies in human resource management and organisational development and she has an MA in Strategic Human Resources. She has dedicated the last 18 years to specialising in leadership development, talent management, employee engagement and culture change. She is passionate about helping individuals and organisations to be the very best they can be, which in turn improves organisational and individual performance.

Subcommittees: People and Remuneration

Nicola Hayes

Chair of Finance, Audit, Risk and Commercial Subcommittee

Nicola has had a wide-ranging career covering everything from pedigree dogs and universities to trade associations, with the vast majority spent in financial services at two firms, Invesco Perpetual and Baring Asset Management. When she left Barings in December 2016, she was Global Head of Client Service and Relationship Management, and a non-executive director of eight fund management companies.

Nicola now works as a senior advisor to Independent Audit Ltd, the leading board review consultancy, and chairs the Remuneration, Nomination and Governance committee of the Metropolitan Police Friendly Society (Metfriendly). She has an MA in Modern History from the University of St Andrews.

Subcommittees: Finance, Audit, Risk and Commercial

Stuart Hudson

Senior Independent Trustee (from 24 March 2021)

Stuart Hudson is Senior Director of Strategy, Communications and Advocacy at the Competition and Markets Authority. Stuart was previously a Partner at the consulting firm Brunswick, where he advised companies across Europe, North America and Asia on mergers and acquisitions. He served as Special Adviser to Prime Minister Gordon Brown and Head of Government Affairs at the energy regulator, Ofgem, having originally trained in competition policy with the Office of Fair Trading.

Stuart holds a BA in History and Politics from the University of Oxford and an MSc in Finance from the University of London.

Subcommittees: Finance, Audit, Risk and Commercial (from April 2021 People & Remuneration Subcommittee), Nominations

Christine Kanu (appointed 1 September 2020)

Christine has fifteen years’ experience in the charity sector and is currently Executive Director of Finance and Corporate Services at the Chartered Institute of Environmental Health. She has a real interest in organisations which have a strong focus on improving interventions and care outcomes for service users. Christine is passionate about using her professional skills to positively impact the business performance of forward-thinking organisations.

Subcommittees: Finance, Audit, Risk and

Commercial

Andrew Richmond (appointed 1 December 2020) Director of Sue Ryder Lottery Ltd

Andrew was a number one rated healthcare and smaller companies analyst enjoying a wide ranging career in London in stockbroking, fund management and private equity. His non-executive positions have included being Deputy Chair of the Scottish Ambulance Service, sitting on the Board of NHS Tayside and Chairing hub North Scotland, an infrastructure procurement specialist delivering properties for both the NHS and Local Authorities.

He has also Chaired the Angus Community Health Partnership (CHP) and sat on the Court of the University of Dundee where he Chaired the Finance and Resources Committee.

He currently Chairs Frontier IP Group PLC which is a London Stock Exchange Alternative Investment Market (AIM) traded Intellectual Property (IP) specialist, is a member of the Management Board of the Caledonia Housing Association (CHA) and is a Trustee of Scotland’s Charity Air Ambulance (SCAA).

Andrew has an MA in Economics and Accounting from the University of Edinburgh and is an Associate of the Society of Investment Professionals (ASIP).

Subcommittees: Finance, Audit, Risk and Commercial

Subcommittees: Finance, Audit, Risk and Commercial

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Structure, governance and management

Structure, governance and management

Legal and administrative details (continued)

Kevin Rusling

Director of Sue Ryder Direct

With over 20 years of experience in retail, Kevin is currently Chief Operating Officer at the global retailer Mothercare. Kevin’s early career at Marks and Spencer gave him excellent grounding in retail, and he went on to lead teams at Walmart and Monsoon Accessorize prior to joining Mothercare to lead the transformation of the business. Kevin’s expertise lies in shaping and delivering a strategic vision across challenging, international business portfolios. He brings tremendous energy, drive and exceptional focus, and works with not-for-profit organisations enabling companies from non-retail sectors to benefit from his experience.

Subcommittees: Finance, Audit, Risk and

Commercial

Helen Thomson

Chair of Health and Social Care Subcommittee

Helen has over 20 years of experience as a Chief Nurse and Deputy CEO within the NHS. She is a registered nurse and midwife, and also has a number of years of experience as a coach. Upon retiring from the NHS in 2014, she formed her own business offering consultancy and coaching. She is an Associate of the Florence Nightingale Foundation, Non-Executive Director for Leeds Community NHS Trust and a Council Member of the University of Huddersfield. She was also appointed Deputy Lieutenant for West Yorkshire in 2012.

Subcommittees: Health and Social Care

Auditors

BDO LLP, 55 Baker Street, London, W1U 7EU

Bankers

Lloyds TSB plc, Cornhill, Ipswich, IP1 1DG

Solicitors

Eversheds, Bridgewater Place, Water Lane, Leeds, LS11 5DR Willans, 28 Imperial Square, Cheltenham, Gloucestershire, GL50 1RH

Gately Legal, Minerv, 29 East Parade, Leeds, LS1 5PS

Investment advisers

CCLA, Senator House, 85 Queen Victoria Street, London, EC4V 4ET

The Executive

Leadership Team

Chief Executive

Heidi Travis

Chief Operating Officer (from April 2021) Chief Financial Officer (until April 2021) plus Interim Director of Hospices (from September 2020 until April 2021) Alan Bowers

Chief Medical Director

Dr Paul Perkins

Company Secretary and

General Counsel and Director of Compliance and Risk Helen Organ

Director of Finance (from April

Director of Patient Services and Nursing

Director of Nursing (until April 2021) plus Interim Director of Hospices (until September 2020) Sarah Gigg

Director of People and

Corporate Services (from April 2021)

Director of People and Marketing and Communications (until April 2021) Tracey Taylor-Huckfield

Director of Retail and Estates

(from April 2021)

Director of Retail and

E-commerce (from June 2020 until April 2021) Martin Wildsmith

2021)

Interim Operational Finance

Director (from September 2020 until April 2021) Kirsten Stevens

Director of Fundraising

Caroline Graham

Director of Neurological

Services and Scotland (until April 2021) Pamela Mackenzie

50 Sue Ryder Chief Medical Director, Dr Paul Perkins and patient.

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Financial statements

Financial statements

Independent auditor’s report

Opinion on the financial statements

In our opinion, the financial statements:

We have audited the financial statements of Sue Ryder (“the Parent Charitable Company”) and its subsidiaries (“the Group”) for the year ended 31 March 2021 which comprise the Consolidated Statement of Financial Activities, the Consolidated Balance Sheet, the Consolidated Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is 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).

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Independence

We are independent of the Group and the Parent Charitable Company in accordance with the ethical requirements 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.

Conclusions related to going concern

In auditing the financial statements, we have concluded that the Trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group and the Parent Charitable Company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Other information

The Trustees are responsible for the other information. The other information comprises the information included in the Trustees’ Annual Report, other than the financial statements and our auditor’s report thereon. The other information comprises: the Trustees’ Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise

appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Other Companies Act 2006 reporting

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

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 misstatement in the Strategic report or the Trustees’ report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 and the Charities Accounts (Scotland) Regulations 2006 requires us to report to you if, in our opinion;

are not in agreement with the accounting records and returns; or

Responsibilities of Trustees

As explained more fully in the Trustees’ responsibilities statement, the Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Trustees are responsible for assessing the Group’s and the Parent Charitable Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the Group or the Parent Charitable Company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditor under section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and under the Companies Act 2006 and report in accordance with the Acts and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due

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Financial statements

Financial statements

Independent auditor’s report (continued)

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.

Extent to which the audit was capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of noncompliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We made enquiries of management, and the Board, including:

Audit response to risks identified

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.

A further description of our responsibilities for the audit of the financial statements is located at the Financial Reporting Council’s (“FRC’s”) website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the Charitable Company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006, and to the Charitable Company’s Trustees, as a body, in accordance with the Charities and Trustee Investment (Scotland) Act 2005. Our audit work has been undertaken so that we might state to the Charitable Company’s members and Trustees 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 Charitable Company, the Charitable Company’s members as a body and the Charitable Company’s Trustees as a body, for our audit work, for this report, or for the opinions we have

formed. DocuSigned by:

Heather Wheelhouse (Senior Statutory Auditor) DA15AED75D45453 For and on behalf of BDO LLP, statutory auditor London, UK

Date 16 December 2021

BDO LLP is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.

BDO LLP is a limited liability partnership registered in England and Wales (with registered number OC305127).

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Financial statements

Financial statements

Accounts for year ended 31 March 2021

Consolidated Statement of Financial Activities, incorporating consolidated income and expenditure account – Year ended 31 March 2021

Note Unrestricted
funds
£000s		 Restricted
funds
£000s		 Total
2020–21
£000s		 Unrestricted
funds
(as restated)
£000s		 Restricted
funds
(as restated)
£000s		 Total
2019–20
(as restated)
£000s
Income:
– Donations and legacies 3 21,967 11,194 33,161 3,689 14,968 18,657
– Charitable activities 4 33,703 21,242 54,945 30,974 663 31,637
– Other tradingactivities 5 19,178 - 19,178 61,530 21 61,551
– Investment income 6 45 - 45 172 - 172
Total income
Expenditure:		 74,893 32,436 107,329 96,365 15,652 112,017
Raisingfunds
– Fundraisingcosts 3,430 - 3,430 5,240 - 5,240
– Retail costs 43,077 - 43,077 58,073 - 58,073
– Investment management costs 75 - 75 37 - 37
Total expenditure on raising funds
Charitable activities		 46,582 - 46,582 63,350 - 63,350
– End-of-life care (427) 28,072 27,645 19,611 9,503 29,114
– End-of-life care impairment 493 - 493 1,802 - 1,802
End-of-life care total expenditure 66 28,072 28,138 21,413 9,503 30,916
– Long-term neurological care 21,161 281 21,442 18,228 65 18,293
– Long-term neurological care impairment 483 - 483 203 - 203
Long-term neurological care
total expenditure		 21,644 281 21,925 18,431 65 18,496
– Homecare 1,437 - 1,437 2,488 2 2,490
Homecare total expenditure 1,437 - 1,437 2,488 2 2,490
– International 8 80 - 80 64 - 64
International total expenditure 80 - 80 64 - 64
Total expenditure on charitable
activities		 23,227 28,353 51,580 42,396 9,570 51,966
Total expenditure on fundraising
and charitable activities		 7 69,809 28,353 98,162 105,746 9,570 115,316
Net income/(expenditure)
for theyear		 5,084 4,083 9,167 (9,381) 6,082 (3,299)
Note Unrestricted
funds
£000s		 Restricted
funds
£000s		 Total
2020–21
£000s		 Unrestricted
funds
(as restated)
£000s		 Restricted
funds
(as restated)
£000s		 Total
2019–20
(as restated)
£000s
Gain on disposal of fxed assets 2 - 2 - - -
Gains/(loss) on investment assets 11 1,938 - 1,938 (691) - (691)
Net income/(expenditure) for the
year before transfers		 7,024 4,083 11,107 (10,072) 6,082 (3,990)
Transfer between funds 17, 18 2,065 (2,065) - 4,029 (4,029) -
Net income/(expenditure) for the
year after transfers		 9,089 2,018 11,107 (6,043) 2,053 (3,990)
Reconciliation of funds:
Total funds brought forward 47,747 6,075 53,822 53,790 4,022 57,812
Net movement of funds for theyear 9,089 2,018 11,107 (6,043) 2,053 (3,990)
Total funds carried forward
as at 31 March 2021		 56,836 8,093 64,929 47,747 6,075 53,822

The Statement of Financial Activities includes all gains and losses recognised in the 12 month period. All amounts relate to continuing activities.

The notes on pages 64 to 94 form part of these financial statements.

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Financial statements Financial statements Accounts for year ended 31 March 2021 (continued) Consolidated and Charity balance sheets Company registration number: 00943228 Consolidated cash flow statement Consolidated Charity Consolidated 31 March 31 March 31 March 31 March 2020–21 2019–20 Note 2021 2020 2021 2020 £000s £000s Note (as restated) (as restated) Cash flows from operating activities £000s £000s £000s £000s Net cash provided by operating activities 25 10,640 4,389 Fixed assets Tangible assets 10 36,923 39,037 36,923 39,037 Cash flows from investing activities Freehold properties held for sale 12 9,007 9,500 9,007 9,500 Investment income received 6 172 Investments 11 9,980 8,110 9,980 8,110 Net receipts from sales of fixed assets held for sale - 751 55,910 56,647 55,910 56,647 Payments to acquire tangible fixed assets 10 (2,285) (12,103) Current assets Receipts from sale of investments 11 7,524 2,836 Stocks – new goods for resale 1,208 1,836 49 8 Purchase of investments 11 (7,520) (2,194) Debtors 13 14,632 14,726 15,825 16,207 Cash at bank and in hand 13,627 4,407 13,127 3,957 Net cash used in investing activities (2,275) (10,538) 29,467 20,969 29,001 20,172 Cash flows from financing activities Creditors: amounts falling due within one year 14 (10,216) (14,821) (9,866) (14,134) Cash inflows from new borrowing to finance fixed asset development 851 6,167 Net current assets 19,251 6,148 19,135 6,038 Net cash provided by financing activities 851 6,167 Total assets less current liabilities 75,161 62,795 75,045 62,685 Change in cash and cash equivalents during the year 9,216 18 Cash and cash equivalents at the beginning of the year 4,407 4,423 Creditors: amounts falling due after one year 15 (7,225) (6,610) (7,225) (6,610) Change in cash and cash equivalents due to exchange rate movements 4 (34) Provisions for liabilities 16 (3,007) (2,363) (2,895) (2,260) Long term liabilities and provisions (10,232) (8,973) (10,120) (8,870) Cash and cash equivalents as at the end of the year 13,627 4,407 Total net assets 64,929 53,822 64,925 53,815 Funds of the Charity Income funds Net Acquisition/ New Foreign Other At start cash disposal of finance Fair value exchange non cash At end Unrestricted funds of year flows subsidiaries leases movements movements changes of year Property revaluation reserve 17 11,325 12,357 11,325 12,357 Analysis of changes in net debt 11,325 12,357 11,325 12,357 Bank and cash 4,407 9,216 - - - 4 - 13,627 Unrestricted general funds 17 45,511 35,390 45,507 35,383 4,407 9,216 - - - 4 - 13,627 Total unrestricted funds 56,836 47,747 56,832 47,740 Loans falling due within one year (18) (235) - - - - (162) (415) Restricted funds 18 8,093 6,075 8,093 6,075 Loans falling due within two to five years (1,110) 37 - - - - (5,91) (1,664) Total funds (483) 64,929 53,822 64,925 53,815 Loans falling due after five years (5,500) (653) - - - - (1,298) (7,451) (6,628) (851) - - - - (2,051) (9,530) The notes on pages 64 to 94 form part of these financial statements. No charity Statement of Financial Activities is presented as permitted by section 408 of the Companies Act 2006. The charity’s surplus for the financial period is £11,110,237 and the income for the charity is £103,020,295. Total change in net debt (2,221) 8,365 - - - 4 (2,051) 4,097 Approved and authorised for issue by the Council of Trustees on 16 December 2021 and signed on its behalf by ~~Hl =~~ Rima Makarem 60 Chair

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62 Sue Ryder supporters taking part in a cycle to raise vital funds for our services. Vee

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Financial statements

Financial statements

Notes to the accounts

1 Accounting policies

(a) Basis of preparation

The Financial Statements are prepared in accordance and compliance with: (i)FRS 102, the Financial Reporting Standard applicable in the United Kingdom; (ii) 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 (FRS 102) ‘Charities SORP (FRS 102) (second edition – October 2019)’ issued by the Charity Commission; and (iii) Companies Act 2006.

Sue Ryder meets the definition of public benefit entity under FRS102. Monetary values are calculated under the historical cost convention, as modified by the revaluation of investments.

(b) Going concern

The Trustees have not identified any material uncertainties and are not aware of any specific or general event that would place significant doubt on the charity’s ability to continue as a going concern.

The effect of the Covid-19 pandemic on our finances has been significant. In response, we developed and launched a number of fundraising campaigns, which combined with local and central government Covid-19 support funding ensured that we could continue with the provision of our charitable activities throughout the year. At the start of the pandemic, management implemented tighter cost and cashflow management controls in order to mitigate the impact of reduced income caused by the pandemic, and these controls remain in place. Our approved budget for the financial year 21–22 is conservative and demonstrates the charity’s ability to preserve cash. We closely monitor the cashflow forecast and whilst the ongoing pandemic has made financial forecasting difficult, we continue to navigate the challenges well and have prepared detailed forecasts for the remainder of

This forecast and our ongoing assessment of our liquid reserves position forms the basis of our assessment of going concern. Our forecasts take into account the most recent Government announcements on the easing of restrictions, and whilst we have not forecast any further lockdown restrictions, we have factored in a slow return to face to face fundraising events.

In assessing the going concern of the charity, cashflows have been prepared for 12 months from the date of sign off and our forecast has been stress tested to reflect a number of different scenarios around the potential future impact of the pandemic on our operations and the economy. In running a number of different scenarios on our key forecast assumptions, we have included an extreme scenario which models a combination of further national lockdowns in the autumn/winter and reductions in legacy and other fundraising income. As there is little or no correlation between these income streams, this scenario is considered to be very unlikely. We have also given consideration to any potential material uncertainty that could place significant doubt over the use of the going concern basis of accounting for a minimum period of 12 months from the date of approval of these accounts.

Whilst the scenarios modelled would have a significant adverse financial impact, all scenarios demonstrate that we remain in a cash positive position. In carrying out the reverse stress testing, we gained assurance that we would be able to continue as a going concern in the event of the following adverse scenarios, both individually and combined:-

The combined scenarios assume that management would not do anything to mitigate against the downsides. In reality, and as proven during the year 2020–21, management response would be swift and expenditure would be tightly controlled in line with any shortfall in income. Spend on discretionary items could be reduced and consideration could be given to reducing the scope of services.

Based on our forecasts and the reverse stress testing scenario analysis, the Trustees have not identified any material uncertainties that would place doubt relating to going concern and therefore consider that the going concern basis of accounting is appropriate in the preparation of the accounts.

(c) Consolidated financial statements

Consolidated financial statements have been prepared in respect of Sue Ryder, its wholly owned trading subsidiaries, Sue Ryder Direct Limited, Woburn Property Investment Company Ltd (dormant) and Sue Ryder Lottery Ltd, and subsidiary charity Duchess of Kent House Charity (dormant) and linked charity Sue Ryder Care (Chantry).

(d) Restricted funds

Restricted funds are those which are subject to specific conditions imposed by donors or grant making organisations.

(e) Unrestricted General Fund

The General Fund is comprised of accumulated net income and expenditure in the Statement of Financial Activities after any transfers between funds.

(f) Designated funds

Designated funds are those which the Trustees have assigned to a particular project or purpose.

(g) Income

All income is included when the charity is entitled to the income, the receipt of funds is probable and the amount can be reliably quantified.

Income for the provision of care services, principally from clinical commissioning groups and local authorities, is recorded on a receivable basis in respect of the services provided.

The NHSE awarded funding to allow the hospices to make available bed capacity and community support from April 2020 to July 2020 and to provide support to people with complex needs in the context of the Covid-19 situation and to provide bed capacity and community support from November 2020 to March 2021 for the same purpose.

Interest receivable is accrued on a day-to-day basis, and other investment income is recognised on receipt. Donations are shown as income on receipt, unless there is earlier evidence of entitlement and the amount can be measured reliably. Legacy income is recognised when there is legal entitlement (from date of probate, or from receipt if earlier), receipt is probable (there are no material uncertainties on the estate) and the amount can be measured reliably (financial information in respect of the estate has been received). A 10% provision is made as an estimate to allow for legal costs and diminution in estate assets. Where legacies have been notified to the charity but these criteria are not fully met, the legacy is treated as a contingent asset and disclosed if material (see note 13).

Income received from grants is recognised when it was awarded and when the terms and conditions of any performance criteria linked to the grant award or stage payments have been met.

2021–22 and beyond.

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Financial statements

Financial statements

Notes to the accounts (continued)

1 Accounting policies (continued)

Support from clinical commissioning groups and local authorities in response to the Covid-19 pandemic was received through the Infection Control Fund (from June 2020), the Rapid Testing Fund (from January 2021) and the Workforce Capacity Fund.

A number of government grants have been made available to support businesses through the pandemic. During the year, the Retail, Hospitality and Leisure Grant Fund (RHLGF) has been utilised to support the charity’s retail operations. The level of grants that can be claimed is subject to subsidy control measures which set a limit on the amount that an entity can claim. The Trustees have given due consideration to the guidance provided by The Department of Business, Energy and Industrial Strategy (BEIS) concerning entitlement to these grants. A full review was performed to ensure that the ‘turnover’ and ‘uncovered fixed cost’ tests have been met during the period that the guidance relates to. It is therefore considered that a strong case exists to make use of the Covid-19 special allowance available to the charity. This allows an entity to claim up to a maximum of £9m in Government grants above the other allowances of £1.9m that are available under the subsidy control measures. RHLGF income of £3.3m in aggregate has therefore been reflected in these financial statements.

During the year, the Coronavirus Job Retention Scheme (CJRS) has also been utilised. Employee costs have been recognised in full in the financial statements and the CJRS grant income is included in income from legacies and donations.

Income in the charity’s wholly owned subsidiaries is included under other trading income. Income is accounted for on an accruals basis. New goods income represents the value of new goods sold after trade discounts and net of value added tax. Tax rebates under Gift Aid are accrued for in accordance with the appropriate Gift Aid rules.

Gifts donated for resale are included as income when they are sold. No amounts are included in the financial statements for services donated by volunteers.

Gift Aid income claimed under the UK retail Gift Aid scheme is estimated and accrued at the point of sale.

(h) Expenditure

All expenditure is accounted for on an accruals basis and grants are recognised when a constructive or actual obligation arises.

Costs are allocated to the cost of raising funds and charitable activities on the basis of direct allocation and apportionment of support costs as detailed in note 7.

Costs of raising funds include fundraising, all retail and property trading activities and the costs of managing the investment portfolio.

Charitable activities include the costs of care provided, grants to the independent Sue Ryder charities abroad and funding for research and service improvement.

Costs of raising funds from trading activities do not include any valuation of donated goods sold (refer to accounting policy (k) Stocks on page 67).

Business rates relief is treated as an absent cost and the charge in the Statement of Financial Activities has been reduced for the period of the relief.

(i) Termination payments

Sue Ryder’s policy is to make redundancy payments in line with minimum statutory requirements unless the employee has protected rights from a previous employer.

(j) Fixed assets

Tangible fixed assets are included in the financial statements at cost less depreciation with the exception

of freehold land and buildings (refer to note 2(b) Fair value of tangible assets on page 70). Items with a value of £1,000 or more and with a useful life of more than one year are capitalised. Where assets are valued at less than £1,000 but form part of a group of assets (e.g. a computer network) which totals more than £1,000 they are capitalised.

Assets in the course of construction are included in the financial statements at cost of construction. They are depreciated once the asset becomes operational and moved into the category of freehold land and buildings.

Where an asset comprises two or more major components, the components are reviewed and consideration is given to whether they have substantially different useful economic lives which should be depreciated separately.

Management undertake a review of useful economic lives where appropriate. Depreciation is provided to write off assets over their estimated useful lives at the following annual rates:

Depreciation rate
Asset category Depreciation rate
Freehold land Not depreciated
Freehold buildings 2.5%per annum
Leasehold buildings Over the lesser of the term
of the lease or the life of the
asset in its current use
Motor vehicles 10% of the original cost
Care centre fxtures 10%–25% of the
and fttings original cost
Retail shops fxtures 25% of the original cost
and fttings original cost
Computer equipment 33.33% of the original cost
and software

Profits or losses on disposal of fixed assets are calculated as proceeds after any legal and other associated costs less the net book value at time of disposal.

Freehold and leasehold properties no longer being used are shown at net realisable value at the point the decision was made to dispose of the asset. Any properties that are being actively marketed at the year end are transferred to current assets, at this point any impairment is recognised.

(k) Stocks

Stocks on new goods are valued at the lower of cost or net realisable value, after making due allowance for obsolete and slow moving items, based on the principle of first in, first out.

Estimating the fair value of donated goods for resale is impractical because of the volume of low-value items received or the absence of detailed stock control systems or records. Donated goods for resale are therefore not recognised on receipt. Instead, the value to the charity of the donated goods sold is recognised as income when sold. The proceeds of sale are categorised as ‘Income from other trading activities’ in the Statement of Financial Activitiies.

(l) Pension costs

Defined contribution schemes are available to eligible employees with contributions payable by both Sue Ryder and the members. The contributions are charged to expenditure in the year they are payable to the scheme.

Sue Ryder contributes to defined benefit contributory pension schemes on behalf of certain former National Health Service employees

These contributions are fixed by reference to quinquennial valuations by the Government actuary. The contributions are charged to expenditure on the basis of ensuring a level charge over the remaining service lives of employees. Information is not available to identify the surplus or deficit that relate to Sue Ryder, and as a result of this, the scheme is treated as a defined contribution scheme under the provisions of FRS 102.

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67

Financial statements

Financial statements

Notes to the accounts (continued)

(m) Value Added Tax (VAT)

Sue Ryder bears VAT to the extent that there is no recovery in respect of the care centres’ expenditure of a revenue or capital nature, other than that recoverable under Section 33D of the VAT Act 1994 as a palliative charity, and only partial recovery in respect of administrative expenditure. Irrecoverable VAT is allocated across the expenses that give rise to the tax.

(n) Investments

Investments are stated at bid value at the Balance Sheet date. Realised and unrealised gains and losses are recorded in the Statement of Financial Activities (SOFA).

(o) Leasing

Plant and machinery/fixtures and fittings Rentals paid under operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged to expenditure as incurred. Assets held under finance leases are capitalised on project completion and disclosed under tangible fixed assets at their net book value. The capital element of the future payments is treated as a liability and the interest is charged to the Statement of Financial Activities on a straight-line basis.

Property

Rentals paid under operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged to expenditure as incurred.

Property lease premiums are expensed over the primary period of the lease.

The effect of any rent-free period or other lease incentives received is spread over the primary period of the lease.

In October 2020 an amendment was made to FRS102

in respect of the accounting for rent concessions occurring as a direct consequence of the Covid-19 pandemic. Rent concessions provided by landlords in direct response to the Covid-19 pandemic are recognised in the period that benefits from the concession and are not spread over the term of the lease. These concessions only relate to lease payments that were originally due on or before 30 June 2021.

Rent received under operating leases where substantially all of the benefits and risks of ownership remain with the lessee are recognised as income when due.

(p) Taxation

The company is a charity within the meaning of Part 1 of Schedule 6 to the Finance Act 2010. Accordingly the charity is potentially exempt from taxation in respect of income or capital gains within categories covered by Chapter 3 of Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes. No tax charge arose in the period.

The subsidiary companies make qualifying donations of all taxable profits to Sue Ryder under deed of covenant, keeping reserves in the subsidiary Sue Ryder Direct above an agreed level. No subsidiary corporation tax charges arise in the accounts.

No provision for deferred tax is made in the subsidiaries’ accounts, as in the view of the Trustees, any tax charge in the subsidiaries will be minimal due to the arrangements to gift their taxable profits to the parent charity.

(q) Grants

Grant expenditure

Sue Ryder awarded a grant to support the work of a Sue Ryder organisation overseas. This is recognised when there is a valid expectation by the grantee that the amount will be paid.

(r) Foreign currency transactions

Sue Ryder accounts for foreign currency purchases at the rate prevailing at the time the currency is bought. All other transactions during the year are calculated using the previous month’s average rate. Assets and liabilities held in foreign currency at the balance sheet date are valued at the rate prevailing at that date. Differences on exchange are taken to the Statement of Financial Activities.

(s) Debtors and prepayments

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

(t) Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are recognised at their settlement amount after allowing for any trade discounts due.

(u) Financial instruments

The charity has financial assets and 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.

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69

Financial statements

Financial statements

Notes to the accounts (continued)

2 Accounting estimates and judgements

(a) Accounting estimates and judgements

In preparing these financial statements within the accounting frameworks set out in Note 1(a), the Trustees are required to adopt those accounting policies most appropriate to the charity’s circumstances with a view to presenting fairly the charity’s financial position. In determining and applying accounting policies, Trustees make estimates and judgements and the matters set out below are considered to be the most important in understanding the judgements that have been involved in preparing the Financial Statements and the uncertainties that could impact the amounts reported.

(b) Fair value of tangible assets

FRS 102 requires that property is held at cost or valuation. The Trustees obtained valuations for property at 1st April 2014 to ensure the carrying value is a reliable estimate. In determining the value of the charity’s freehold properties, Trustees have relied on estimates provided by professionally qualified advisers as described in note 10. Trustees considered that historic cost was the most appropriate basis to state the fair value of Thorpe Hall at the time and still consider this to be relevant. All other freehold property is held at deemed cost.

At the year end, an impairment review has been carried out on the two freehold property assets held for resale. The asset values have been impaired to reflect an estimated sales value for each that the Trustees consider to be fair and reasonable as described in note (h) below and in note 7.

(c) Estimation of assets’ useful lives

The charge in respect of periodic depreciation is derived from determining an estimate of an asset’s expected useful life and the expected residual value

at the end of its life. These estimates of lives by asset category are set out in note 1(j). The useful lives and residual values of the charity’s assets are determined by management at the time the asset is acquired and reviewed annually for appropriateness. The Trustees determined that the main freehold properties’ lives do not need to be altered to reflect their anticipated useful lives taking into account their physical condition, the services being provided from them and the planned maintenance programme.

During the year the freehold properties have been reviewed considering their material constituent parts with consideration to their differing useful economic lives. Any substantial differences between this and the standard depreciation policy would result in the need to change the depreciation of that component. The Trustees do not consider the difference arising to be significant or material enough to make an adjustment for in the financial statements; therefore no adjustment has been made.

(d) Provision for doubtful debts

Provisions have been made against invoiced debts where the collectability of these debts is uncertain. Debts over 12 months old are provided for in full and debts between 4 months and 12 months are provided for at 50% of their value.

(e) Cost allocations

Support costs not directly attributable to a single activity, such as IT, Finance and HR, are allocated to activities using suitable cost drivers for that cost category. Examples of cost drivers used can be found in note 7.

(f) Provision for dilapidations

Dilapidation provisions are calculated using an average

dilapidation cost per square foot for all properties vacated during the previous two years. The average cost is applied to the rateable value of all properties in the estate to calculate the expected liability at the end of the lease. The provision is recognised on a straight line basis over the life of the lease and discounted back from the lease end date to the balance sheet date using a rate of 4%.

(g) Provision for slow moving and obsolescent stock

Stock is shown at the lower of cost or net realisable value. Where stock is discounted to less than cost price it is provided for at the lower of cost and net realisable value. Provisions have been made for slow moving and obsolete stock. Slow moving stock over 18 months old is provided for at 75% of cost.

Donated goods for resale are not recognised as stock on the balance sheet on the grounds that the cost of obtaining stock information would be outweighed by any benefit.

(h) Key sources of estimation uncertainty and accounting judgement

At the reporting date the Trustees have reviewed the key sources of estimation uncertainty detailed below and do not consider there to be a significant risk of a significant adjustment in the carrying value of the assets and liabilities in the next financial year. Estimates and judgements are continually evaluated and are based on historical evidence and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Property valuations

CBRE Ltd carried out the valuations of freehold land and buildings in accordance with UK Generally Accepted Accounting Principles (GAAP) and reported

on Fair Values for all 12 properties as at 31st March 2014. Underlying this basis of value are two principal approaches. First, to value the property as a trading entity assuming continued use as a care facility. Second, where it was deemed there would be limited or no demand, CBRE valued the property for alternative use assuming vacant possession.

These values have been applied at the transition date to FRS102 of 1st April 2014 for all the freehold properties except for the buildings at Thorpe Hall and are the deemed cost of these properties. Thorpe Hall has been stated at historic cost (plus subsequent additions) which reflects its value in use to the charity and its beneficiaries.

Properties held for resale

At the end of the year two properties were held for resale, Cuerden Hall and Nettlebed. Cuerden Hall is under offer and contracts have been exchanged with a sale price of £1.5m. An impairment of £0.2m was recognised in the 2019–20 annual accounts to reflect the reduction in deemed cost to agreed sale price. A deposit of £200,000 was paid for the property on exchange and contract completion is scheduled for October 2021. No further impairment is considered necessary on Cuerden Hall.

An impairment of £1.5m was recognised in the 2019–20 annual accounts against Nettlebed to reflect the reduction in deemed cost to £8m. During the year a further impairment of £493,000 has been included in the accounts to reflect what is considered to be a fair estimation of sale proceeds based on third party external valuations. Since the year end Nettlebed has been actively marketed for sale and an offer accepted.

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71

Financial statements

Financial statements

Rent concessions

In October 2020 an amendment was made to FRS102 in respect of the accounting for rent concessions occurring as a direct consequence of the Covid-19 pandemic. Rent concessions provided by landlords in direct response to the Covid-19 pandemic are recognised in the period that benefits from the concession and are not spread over the term of the lease. These concessions only relate to lease payments that were originally due on or before 30 June 2021 and the following three conditions must be met:

Grant funding

During the year, the Retail, Hospitality and Leisure Grant Fund (RHLGF) has been utilised to support the charity’s retail operations. The level of grants that can be claimed is subject to subsidy control measures which set a limit on the amount that an entity can claim. The Trustees have given due consideration to the guidance provided by the Department of Business, Energy and Industrial Strategy (BEIS) concerning entitlement to these grants. A full review was performed to ensure that the ‘turnover’ and ‘uncovered fixed cost’ tests have been met during the period that the guidance relates to. It is therefore considered that a strong case exists to make use of the full amount of the Covid-19 special allowance. This allows an entity to claim up to £9m in government grants above the other allowances of £1.9m that are available under the subsidy control measures. RHLGF income has therefore been reflected in these financial statements.

In preparing the financial statements for the year ended 31st March 2021 a review was undertaken of all rent concessions offered in direct response to the Covid-19 pandemic. Those concessions that met the criteria amounted to £1,113,842 in the year and have been recognised in the financial statements.

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Sue Ryder Occupational Therapist, Helen with service user Maiya.
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73

Financial statements

Financial statements

Notes to the accounts (continued)

3 Income from donations and legacies

3 Income from donations and legacies
2020–21
£000s		 2019–20
£000s
Legacies 8,264 8,860
Donations and other voluntaryincome 10,747 9,797
Retail, Hospitalityand Leisure Grant Fund 3,350 -
Coronavirus Job Retention Scheme 10,800 -
Total 33,161 18,657

Retail, Hospitality and Leisure Grant funding of £700,000 was received in 2019–20 and is included in note 5 below within ‘Shop income from selling donated and bought in goods’.

4 Income from charitable activities

4 Income from charitable activities
2020–21
£000s		 2019–20
£000s
Provision of end-of-life care:
– NHS and local authorities 11,412 12,881
– NHSE Covid-19 funding 20,806 -
– NHS and local authorities Covid-19 funding 711 -
– Private care 2 49
– Other 1,384 1,232
Provision of long-term neurological care: 34,315 14,162
– NHS and local authorities 17,767 13,980
– NHS and local authorities Covid-19 funding 467 -
– Private care 575 570
– Other 229 127
Homecare: 19,038 14,677
– Local authorities and other commissioners 1,480 2,798
– NHS and local authorities Covid-19 funding 95 -
– Other 17 -
1,592 2,798
Total 54,945 31,637

6 Investment income

6 Investment income
2020–21
£000s		 2019–20
£000s
Dividends 9 141
Bank interest received 36 31
Total 45 172

7 Expenditure

Activities
undertaken
directly
£000s		 Grant funding
of activities
£000s		 Support
costs
£000s		 Total
2020–21
£000s		 Total
2019–20
(as restated)
£000s
Charitable activities
End-of-life care 24,817 - 2,828 27,645 29,114
End of life care impairment 493 - - 493 1,802
Long-term neurological care 19,305 - 2,137 21,442 18,293
Long-term neurological care impairment 483 - - 483 203
Homecare 1,259 - 178 1,437 2,490
Support for international - 80 - 80 64
Total charitable activities
Raising funds		 46,357 80 5,143 51,580 51,966
Raisingfunds – fundraisingcosts 3,192 - 238 3,430 5,240
Raisingfunds – retail costs 38,230 - 4,847 43,077 58,073
Investment management costs 75 - - 75 37
Total cost of raising funds 41,497 - 5,085 46,582 63,350
Total expenditure 87,854 80 10,228 98,162 115,316

The impairment of fixed assets in 2019–20 relates to two properties. In October 2020, contracts were exchanged on the sale of Cuerden Hall at an agreed price of £1.5m. The sale is due to complete in October 2021. For the second property, an impairment of £1.5m was recognised in the 2019–20 annual accounts against Nettlebed to reflect the reduction in deemed cost to £8m. During the year a further impairment of £493,000 has been included in the accounts to reflect what is considered to be a fair estimation of sale proceeds based on third party external valuations. Since the year end Nettlebed has been actively marketed for sale and an offer accepted.

5 Income from other trading activities

5 Income from other trading activities
2020–21
£000s		 2019–20
£000s
Income
Fundraisingevents 34 202
Shop income from sellingdonated and bought ingoods 16,996 58,797
Income from Sue Ryder Lottery 1,944 2,458
Propertylettingand licensing 204 94
Total 19,178 61,551

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75

Financial statements

Financial statements

Notes to the accounts (continued)

7 Expenditure (continued)

Analysis of support costs allocated

2020–21 Total
£000s		 Central
Management
and Admin
£000s		 Finance
and
Governance
£000s		 Human
Resources
£000s		 IT
£000s		 Legal and
Property
Services
£000s		 Marketing and
Communications
£000s
Activity
End-of-life care 2,828 281 474 522 736 350 465
Long-term neurological care 2,137 213 358 395 556 264 351
Homecare 178 18 30 33 46 22 29
Retail shops 4,847 482 812 895 1,262 599 797
Fundraising 238 24 40 44 62 29 39
Total support costs allocated 2020–21 10,228 1,018 1,714 1,889 2,662 1,264 1,681
2019–20 Total
£000s		 Central
Management
and Admin
£000s		 Finance
and
Governance
£000s		 Human
Resources
£000s		 IT
£000s		 Legal and
Property
Services
£000s		 Marketing and
Communications
£000s
Activity
End-of-life care 3,234 305 607 528 788 419 587
Long-term neurological care 1,826 172 343 298 445 237 331
Homecare 139 13 26 23 34 18 25
Retail shops 5,587 527 1,049 912 1,361 724 1,014
Fundraising 203 19 38 33 50 26 37
Total support costs allocated 2019–20 10,989 1,036 2,063 1,794 2,678 1,424 1,994
Support Service Allocation basis
Central Management and Administration Income
Finance Turnover, non directlyattributable irrecoverable VAT
Human Resources Headcount
Legal and Property Turnover; number of properties
IT Services Turnover
Marketingand Communications Turnover

Included within Central Management and Administration costs are governance costs of £320,193 (2019–20 £325,678). These are detailed below:

2020–21
£000s		 2019–20
£000s
Governance
Staf costs 174 176
Audit, consultancyand corporation tax fees 96 87
Legal and professional fees 44 28
Meetings, travel and associated costs - 30
Trainingcosts 1 12
Other costs 5 9
Total 320 342

7 Expenditure (continued)

Net income/(expenditure) is stated after charging/(crediting):

Net income/(expenditure) is stated after charging/(crediting):
2020–21
£000s		 2019–20
£000s
Depreciation 3,916 4,395
Operating leases: 10,247 12,088
– Land and buildings 9,539 11,158
– Motor vehicles 463 641
– Other 245 289
Auditors remuneration 91 87
– Charity 61 66
– Tradingsubsidiaries 30 21
Other services 42 20
– Tax compliance 12 5
– Tax advisory - 15
– Strategic consultancy 30 -
Trustee indemnity insurance 6 5
Defned contribution pension costs (Note 9) 2,202 2,025

8 International grant expenditure

An independent Sue Ryder charity operates in the country shown below. The organisation is independent of this charity but bears the name Sue Ryder.

the name Sue Ryder.
2020–21
£000s		 2019–20
£000s
Grants awarded
Albania 80 80
Total grants 80 80
General support, monitoringand administration expenditure - (16)
Total international 80 64

Auditors fees identified here are those relating to central Charity Governance. Total fees paid to the auditors in the year, including subsidiaries, are broken down further on within this note.

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77

Financial statements

Financial statements

Notes to the accounts (continued)

9 Staff costs

f
9 Sta costs Consolidated
2020–21
£000s
2019–20
£000s		 Charity
2020–21
£000s
2019–20
£000s
2020–21
£000s		 2020–21
£000s
Wages and salaries 58,403 60,245 53,583 59,354
Social securitycosts 4,117 4,129 4,064 4,070
Pension costs 2,202 2,025 2,182 2,002
Total 64,722 66,399 59,829 65,426

Included within the wages and salaries figure above are the costs of £4,180,358 (2019–20: £4,049,946) for employing agency and contract staff. No remuneration was paid to any Trustee during the period (2019–20: Nil).

Included in wages and salaries are redundancy and termination payments made in the year of £806,641 (2019–20: £558,211). Of this £14,911 was outstanding as at 31st March 2021 (2019–20: £237,027). Sue Ryder’s policy is to make redundancy payments in line with minimum statutory requirements unless the employee has protected rights from a previous employer.

During the year, higher paid employees comprised the following:

During the year, higher paid employees comprised the following:
2020–21
No.		 2019–20
No.
£60,001 – £70,000 16 14
£70,001 – £80,000 9 10
£80,001 – £90,000 2 6
£90,001 – £100,000 3 2
£100,001 – £110,000 2 2
£120,001 – £130,000 1 -
£150,001 – £160,000 1 1

The bandings exclude employers’ national insurance and employers pension. Contributions to pension schemes for these employees amounted to £173,792 (2019 –20: £161,109 ). Included in the above figures are members of the Executive Leadership Team (2019–20 includes one individual who was employed on a fixed term contract) as follows:

includes one individual who was employed on a fxed term contract) as follows:
2020–21
No.		 2019–20
No.
Under £60,000 - 1
£70,001 – £80,000 2 1
£80,001 – £90,000 2 5
£90,001 – £100,000 2 1
£100,001 – £110,000 2 2
£120,001 – £130,000 1 -
£150,001 – £160,000 1 1

9 Staff costs (continued)

Contributions to pension schemes for these employees amounted to £54,947 (2019–20 £50,087). The bandings exclude employers’ national insurance and employers pension. The total remuneration for members of the Executive Leadership Team during the year, including employers’ national insurance and pension contributions, was £1,179,409 (2019–20: £1,138,228).

Remuneration of key management personnel, including employers’ national insurance and pension contributions were £288,207 (2019–20 £272,876) key management personnel are defined as Trustees and the roles of Chief Executive and Chief Financial Officer (commencing March 2020). Prior to March 2020 the role of Finance Director was also considered key management personnel. Note that the key management personnel remuneration in 2019–20 includes an individual who was on a fixed-term contract.

No emoluments are payable to any Trustee and only directly incurred travel expenses are reimbursed. During the year, travel expenses of £nil (2019–20: £4,595) were reimbursed to Trustees (2019–20: 7 Trustees). As permitted by the Articles of Association, the charity has purchased and maintained throughout the year a Management Liability Policy which includes Trustees’ and Officers’ liability insurance. The charity incurred expenditure of £6,300 in respect of that insurance for the period (2019–20: £5,250).

The average number of employees during the period comprised the following:

Con
Total number of employees
2020–21
No.
2019–20
No.		 Con
Total number of employees
2020–21
No.
2019–20
No.		 solidated
Adjusted for full-time equivalent
2020–21
No.
2019–20
No.
966
979
867
932
211
196
2,044
2,107		 solidated
Adjusted for full-time equivalent
2020–21
No.
2019–20
No.
966
979
867
932
211
196
2,044
2,107		 solidated
Adjusted for full-time equivalent
2020–21
No.
2019–20
No.
966
979
867
932
211
196
2,044
2,107
Adjusted for full-time equivalent
2020–21
No.
2019–20
No.
2020–21
No.		 2020–21
No.
Care services 1,556 1,547 966 979
Retail 1,277 1,383 867 932
Support services 229 210 211 196
Total 3,062 3,140 2,044 2,107
Total number of employees
2020 –21
No.
2019 –20
No.		 Total number of employees
2020 –21
No.
2019 –20
No.		 Charity
Adjusted for full-time equivalent
2020–21
No.
2019–20
No.
2020 –21
No.		 2020–21
No.
Care services 1,556 1,547 966 979
Retail 1,245 1,344 835 895
Support services 229 210 211 196
Total 3,030 3,101 2,012 2,070

During the year, the number of volunteers donating their services to the charity were:

Total number of volunteers
2020–21
No.
2019–20
No.		 Total number of volunteers
2020–21
No.
2019–20
No.		 Estimation of time donated
2019 –20
Hours 000
2020–21
No.		 2020 –21
Hours 000
Care services 153 2,199 12 325
Retail 8,375 12,791 348 3,303
Support services 4 14 - 4
Total 8,532 15,004 360 3,632

The calculation for volunteer hours for retail is based on actual recorded hours. For health and social care and support services volunteers, it is based on average hours pledged.

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Financial statements

Financial statements

Notes to the accounts (continued)

10 Tangible fixed assets

10 Tangible fxed assets
Consolidated Leasehold
property
£’000s		 Freehold
property
£’000s		 Assets in the
course of
construction
£’000s		 Fixtures,
fttings and
equipment
£’000s		 Motor
vehicles
£’000s		 Total
£’000s
Cost
At 1 April 2020 4,022 25,396 10,002 33,922 468 73,810
Additions 88 - 1,084 1,113 - 2,285
Transfer between categories - 10,553 (10,553) - - -
Transfer to assets for resale - (585) - - - (585)
At 31 March 2021 4,110 35,364 533 35,035 468 75,510
Depreciation
At 1 April 2020 3,569 3,926 - 26,880 398 34,773
Charge for theyear 31 754 - 3,121 10 3,916
Eliminated on disposal - - - - - -
Transfer to assets for resale - (102) - - - (102)
At 31 March 2021 3,600 4,578 - 30,001 408 38,587
NBV
At 31 March 2021 510 30,786 533 5,034 60 36,923
At 31 March 2020
453 21,470 10,002 7,042 70 39,037
Charity Leasehold
property
£’000s		 Freehold
property
£’000s		 Assets in the
course of
construction
£’000s		 Fixtures,
fttings and
equipment
£’000s		 Motor
vehicles
£’000s		 Total
£’000s
Cost
At 1 April 2020 4,022 25,396 10,002 33,585 468 73,473
Additions 88 - 1,084 1,113 - 2,285
Transfer between categories - 10,553 (10,553) - - -
Transfer to assets for resale - (585) - - - (585)
At 31 March 2021 4,110 35,364 533 34,698 468 75,173
Depreciation
At 1 April 2020 3,569 3,926 - 26,543 398 34,436
Charge for theyear 31 754 - 3,121 10 3,916
Eliminated on disposal - - - - - -
Transfer to assets for resale - (102) - - - (102)
At 31 March 2021 3,600 4,578 - 29,664 408 38,250
NBV
At 31 March 2021 510 30,786 533 5,034 60 36,923
At 31 March 2020
453 21,470 10,002 7,042 70 39,037

Included in freehold properties is a value of £2,560,000 (2019–20: £2,560,000) relating to freehold land.

82

83

Financial statements

Financial statements

Notes to the accounts (continued)

11 Investments

11 Investments
Consolidated and Charity
2020–21
£000s
2019–20
£000s
2020–21
£000s
Funds held with Portfolio managers
Market value at 1 April 2020 7,075 8,697
Acquisitions at cost (7,524) 1,196
Proceeds on disposal - (2,836)
Net realised investmentgains/(losses) 449 (24)
Unrealised investmentgains/(losses) - (704)
Cash increase at 31 March 2021 - 746
Market value at 31 March 2021 - 7,075

The investments are represented by:

The investments are represented by:
Consolidated and Charity
2020–21
£000s
2019–20
£000s
2020–21
£000s
UK equities - 1,123
Overseas equities - 2,697
UK fxed interest andgilts - 1,120
Overseas fxed interest andgilts - 327
Others - 987
Cash held for investment purposes - 821
COIF Charityfunds 9,980 1,035
Total 9,980 8,110

The charity does not have any investment holdings that account for more than 5% of the total portfolio value held with investment managers.

The investment shown above includes an investment of £5 held by the charity in its subsidiary undertaking Sue Ryder Direct Limited and £1 held by the charity in each of its subsidiary undertakings Woburn Property Investment Company Ltd and Sue Ryder Lottery Limited.

COIF Charity Funds
Market value at 1 April 2020 1,035 -
Acquisitions at cost 7,520 998
Unrealised investmentgains 1,489 37
Investment fees deducted from portfolio (64) -
Market value at 31 March 2021 9,980 1,035
Total funds invested 9,980 8,110

84

85

Financial statements

Financial statements

Notes to the accounts (continued)

12 Freehold Properties held for resale

Opening
balance		 Transferred
from tangible
fxed assets		 Impairment Sale proceeds Closing balance
Nettlebed 8,000 - (493) - 7,507
Cuerden Hall 1,500 483 (483) - 1,500
Freehold Properties held for resale 9,500 483 (976) - 9,007

At the end of the year two properties were held for resale, Cuerden Hall and Nettlebed. Cuerden Hall is under offer and contracts have been exchanged with a sale price of £1.5m. A deposit of £200,000 was paid for the property on exchange and contract completion is scheduled for October 2021. Since the year end Nettlebed has been actively marketed for sale and an offer accepted.

14 Creditors: amounts falling due within one year (continued)

Movements in deferred income Consolidated
2020–21
£000s
2019–20
£000s		 Consolidated
2020–21
£000s
2019–20
£000s		 Charity
2020–21
£000s
2019–20
£000s		 Charity
2020–21
£000s
2019–20
£000s
2020–21
£000s		 2020–21
£000s
Openingbalance 5,552 1,985 5,382 1,838
Openingbalance released (5,552) (1,985) (5,382) (1,838)
Deferred in theyear 2,303 5,552 2,165 5,382
Movement (3,249) 3,567 (3,217) 3,544
Closing balance 2,303 5,552 2,165 5,382

13 Debtors

Consolidated
2020–21
£000s
2019–20
£000s		 Consolidated
2020–21
£000s
2019–20
£000s		 Charity
2020–21
£000s
2019–20
£000s		 Charity
2020–21
£000s
2019–20
£000s
2020–21
£000s		 2020–21
£000s
Amounts owed by group undertakings - - 1,285 1,582
Debtors for care services 2,677 5,797 2,677 5,797
Accrued income – legacies 6,581 3,658 6,581 3,658
Other debtors 2,740 3,261 2,725 3,169
Prepayments 2,634 2,010 2,557 2,001
14,632 14,726 15,825 16,207

In addition to the £6.581m (2019–20: £3.658m) of legacy accrued income, there were 31 (2019–20: 29) legacies that have been notified to the charity in the year that have not been valued due to the uncertainty of the amount due. There were also 31 (2019–20: 27) reversionary legacies notified to the charity valued at £1.6m (2019–20: £1.6m ) which were not recognised in the Financial Statements due to life tenants.

14 Creditors: amounts falling due within one year

Consolidated
2020–21
£000s
2019–20
£000s		 Consolidated
2020–21
£000s
2019–20
£000s		 Charity
2020–21
£000s
2019–20
£000s		 Charity
2020–21
£000s
2019–20
£000s
2020–21
£000s		 2020–21
£000s
Trade creditors 2,059 2,726 1,946 2,380
Other creditors 430 470 430 470
Amounts payable under loans due 254 18 254 18
Accruals 4,277 5,015 4,178 4,844
Deferred income 2,303 5,552 2,165 5,382
Other taxes and social security 893 1,040 893 1,040
10,216 14,821 9,866 14,134

Income is deferred where it has been invoiced or received in advance, and is for the provision of goods and services after the year end.

15 Creditors: amounts falling due after one year

Consolidated
2020–21
£000s
2019–20
£000s		 Consolidated
2020–21
£000s
2019–20
£000s		 Charity
2020–21
£000s
2019–20
£000s		 Charity
2020–21
£000s
2019–20
£000s
2020–21
£000s		 2020–21
£000s
Amounts payable under loans due within 2 to 5years 1,073 1,110 1,073 1,110
Amounts payable under loans due in more than
fveyears		 6,152 5,500 6,152 5,500
7,225 6,610 7,225 6,610

The charity has a bank loan which has a balance at the end of the year of £7,479,360 (2019–20: £6,628,720) which is secured against freehold property owned by the charity with a total net book value of £10,897,423. The loan interest is repayable on the balance outstanding over the term of the loan which is 25 years. Under the terms of the loan, capital repayments commenced in March 2021 and the loan may be repaid in advance of the end of the term. The interest rate on the loan outstanding as at 31 March 2021 is 2.20% (2019–20: 2.60%) which represents an interest rate of 2.1% plus Bank of England base rate.

16 Provisions for liabilities

Consolidated
2020–21
£000s
2019–20
£000s		 Consolidated
2020–21
£000s
2019–20
£000s
2020–21
£000s
Provisions for propertydilapidations 3,007 2,363
3,007 2,363
Movements in provision for property dilapidations Consolidated
2020–21
£000s
2019–20
£000s
2020–21
£000s
Openingbalance 2,363 2,036
Increase in provision 644 327
Provision for property dilapidations 3,007 2,363

Dilapidations are provided for against the initial term of a property lease with the expectation that, should the lease not be extended, dilapidation costs will become payable after the termination of the lease and after negotiations with the landlord have been concluded.

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Financial statements

Financial statements

Notes to the accounts (continued)

17 Unrestricted funds

Year ended 31 March 2021 Balance at
31 March
2020
£000s		 Income
£000s		 Expenditure
£000s		 Transferred
between
funds
£000s		 Transferred
from
restricted
£000s		 Unrealised
gains and
losses
£000s		 Balance at
31 March
2021
£000s
11,325
45,507
4
56,836
Unrestricted funds
Revaluation reserve 12,357 - - (1,032) - -
General funds 35,386 68,394 (63,308) 1,032 2,065 1,938
Subsidiary's retained funds 4 6,501 (6,501) - - -
Total unrestricted funds 47,747 74,895 (69,809) - 2,065 1,938

The transfer from restricted funds relates to expenditure against projects restricted in previous years for which service provision requirements have now been fully met. The total includes the following transfers: Dee View Court capital appeal – £270,409; Neurological Centre for Lancashire capital appeal – £680,699; Community services at Leckhampton Court Hospice – £166,314; Thorpe Hall Hospice at Home services – £252,294; and Community services at Manorlands Hospice – £252,294.

Year ended 31 March 2020 Balance at
31 March
2019
£000s		 Income
£000s		 Expenditure
£000s		 Transferred
between
funds
£000s		 Transferred
from
restricted
£000s		 Unrealised
gains and
losses
£000s		 Balance at
31 March
2020
£000s
Unrestricted funds
General funds
Revaluation reserve 14,587 - (2,230) - 12,357
General funds 38,699 84,946 (94,327) 2,730 4,029 (691) 35,386
Subsidiary's retained funds 4 11,419 (11,419) - - - 4
Totalgeneral funds 53,290 96,365 (105,746) 500 4,029 (691) 47,747
Designated reserves 500 - - (500) - - -
Total unrestricted funds 53,790 96,365 (105,746) - 4,029 (691) 47,747

18 Restricted funds

The income funds of the Group and charity include restricted funds comprising the following:

Year ended 31 March 2021 Balance at
31 March 2020
£000s		 Income
£000s		 Expenditure
£000s		 Transfers
note 18
£000s		 Balance at
31 March 2021
£000s
Funds held at care centres and centrally 5,048 11,336 (7,535) (1,119) 7,730
Patient rights training 30 - - - 30
Scottish Government training 16 23 - 5 44
Dee View capital appeal - 270 - (270) -
NHSE Covid-19 funding - 20,806 (20,806) - -
Lancashire Neuro Centre Appeal 981 1 (12) (681) 289
Total group restricted funds 6,075 32,436 (28,353) (2,065) 8,093

The Lancashire Neuro Centre Appeal is the total of funds generated for the project to build Sue Ryder Neurological Care Centre Lancashire, which opened in April 2020. Included in transfers out of funds held centrally in the year were £166,314 for community services at Leckhampton, £252,294 for Thorpe Hall Hospice at Home services and £252,294 for community services at Manorlands. The funds held at care centres and centrally of £7,730,790 (2019–20 £5,047,807) comprise the unexpended balances of donations and grants held on trust for specific projects. Included in the balance of £7,730,790 are unexpended legacies for the following hospices: Leckhampton £2,720,000, Wheatfields £1,559,103, St Johns £1,170,180 and Manorlands £726,358.

Year ended 31 March 2020 Balance at
31 March 2019
£000s		 Income
£000s		 Expenditure
£000s		 Transfers
note 18
£000s		 Balance at
31 March 2020
£000s
Funds held at care centres and centrally 1,963 13,890 (9,545) (1,260) 5,048
BigLottery5R's Programme Dee View & Chantry - 23 - (23) -
Dee View Capital Appeal 2,001 717 - (2,718) -
Patient rights training 48 30 - (48) 30
Scottish Government training - 21 (25) 20 16
Lancashire Neuro Centre Appeal 10 971 - - 981
Total group restricted funds 4,022 15,652 (9,570) (4,029) 6,075

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89

Financial statements

Financial statements

Notes to the accounts (continued)

19 Analysis of net assets across funds

19 Analysis of net assets across funds
Consolidated Unrestricted
funds
£000s		 Restricted
funds
£000s		 Total funds
(as restated)
£000s
Fund balances at 31 March 2021 are represented by:
Tangible fxed assets 36,923 - 36,923
Freehold properties held for resale 9,007 - 9,007
Investments 9,980 - 9,980
Current assets 21,374 8,093 29,467
Current liabilities (10,216) - (10,216)
Provision for liabilities (3,007) - (3,007)
Longterm liabilities (7,225) - (7,225)
Total net assets 56,836 8,093 64,929
Consolidated Unrestricted
funds
£000s		 Restricted
funds
£000s		 Total funds
(as restated)
£000s
Fund balances at 31 March 2020 are represented by:
Tangible fxed assets 39,037 - 39,037
Freehold properties held for resale 9,500 - 9,500
Investments 8,110 - 8,110
Current assets 14,894 6,075 20,969
Current liabilities (14,821) - (14,821)
Provision for liabilities (2,363) - (2,363)
Longterm liabilities (6,610) - (6,610)
Total net assets 47,747 6,075 53,822
Charity Unrestricted
funds
£000s		 Restricted
funds
£000s		 Total funds
(as restated)
£000s
Fund balances at 31 March 2021 are represented by:
Tangible fxed assets 36,923 - 36,923
Freehold properties held for resale 9,007 - 9,007
Investments 9,980 - 9,980
Current assets 20,908 8,093 29,001
Current liabilities (9,866) - (9,866)
Provision for liabilities (2,895) - (2,895)
Longterm liabilities (7,225) - (7,225)
Total net assets 56,832 8,093 64,925
Charity Unrestricted
funds
£000s		 Restricted
funds
£000s		 Total funds
(as restated)
£000s
Fund balances at 31 March 2020 are represented by:
Tangible fxed assets 39,037 - 39,037
Freehold properties held for resale 9,500 - 9,500
Investments 8,110 - 8,110
Current assets 14,097 6,075 20,172
Current liabilities (14,134) - (14,134)
Provision for liabilities (2,260) - (2,260)
Longterm liabilities (6,610) - (6,610)
Total net assets 47,740 6,075 53,815

20 Pension costs

(a) Defined contribution schemes of Sue Ryder

A defined contribution group pension scheme was introduced with effect from 1st December 1992, administered by Equitable Life. This scheme is now closed although some members have opted to leave their benefits with Equitable Life. Following the closure of the Equitable Life scheme in October 2001, personal pension plan facilities were arranged with pension providers, currently Zurich, into which the charity pays matched contributions up to a maximum of 5% of pensionable pay for eligible employees who choose to join. From 1 August 2013, eligible Sue Ryder staff not already enrolled in a pension scheme were automatically enrolled into The People’s Pension provided by B&CE. The Charity pays a matched contribution into the scheme in accordance with the auto-enrolment requirements.

(b) National Health Service pension scheme

Sue Ryder also contributes to a defined benefit contributory pension scheme on behalf of certain former National Health Service employees. These contributions are fixed by reference to quinquennial valuations by the Government actuary which is currently 14.38% (2019–20: 14.38%) of earnings. The latest available report relates to the period ending 31st March 2016. It is not possible to identify the surplus or deficit that relates to Sue Ryder and therefore this scheme is treated as a defined contribution scheme under FRS 102, with costs recognised in accordance with contributions payable.

21 Lease obligations

21 Lease obligations
31 March
2020–21
£000s		 31 March
2019–20
£000s
Consolidated operating leases:
Land and buildings
Total minimum commitments which expire:
Within oneyear 9,397 11,246
In the second to ffthyears inclusive 23,793 28,024
After more than fveyears 2,542 8,585
Total minimum commitment 35,732 47,855
Other
Total minimum commitments due:
Within oneyear 529 654
In the second to ffthyears inclusive 504 845
Total minimum commitment 1,033 1499
Total 36,765 49,354

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91

Financial statements

Financial statements

Notes to the accounts (continued)

22 Capital and other commitments

Sue Ryder Direct Limited has outstanding foreign currency commitments of USD $1,299,370 (2019–20: $1,001,380) which are due to mature within 12 months.

During the year work continued on the construction of the Sue Ryder Neurological Care Centre Lancashire. Construction completed and the site was open and operational in April 2020. The outstanding contracted build costs as at 31st March 2021 were £130,289 which represents the final retention balance (2019–20: £708,246). At the year end, a final balance of £221,611 was also due against outstanding build costs which are approved but not yet contracted relating to the Sue Ryder Dee View Aberdeen centre.

23 Prior period adjustments

Two Prior Period Adjustments (“PPA’s”) have been made in these financial statements. Both relate to the classification of amounts relating to two properties, Cuerden Hall and Nettlebed which affect the presentation within the Statement of Financial Activities and the Balance Sheet. Neither of the two errors identified affect the retained result or reserves for either the current year or previous period.

[1] In the consolidated financial statements for the year ended 31 March 2020, two properties with a value of £11,505 were reclassified from tangible fixed assets to current assets, held for resale and were impaired based upon the expected sale values. There is no concept within UKGAAP or the Charity SORP for freehold properties held for resale within current assets and as such the properties have been reclassed in the current and comparative period to be shown within tangible fixed assets.

25 Cash fows from operating activities net cash
provided by operating activities		 Consolidated
2020–21
£000s
2019–20
£000s		 Consolidated
2020–21
£000s
2019–20
£000s
2020–21
£000s
Net income/(expenditure) for the reportingperiod as per the Statement of Financial Activities: 11,107 (3,990)
Add back depreciation (note 10) 3,916 4,395
Increase/(decrease) in investment cash holding - (773)
Investment fees deducted from portfolios 59 -
Loss on foreign currencyheld 4 34
Dividend and interest received from investments (9) (172)
Loss on impairment of fxed assets 976 2,005
(Gain)/loss on the sale of investment assets (1,938) 691
Decrease in stocks 628 556
Decrease/(increase) in debtors 94 (2,545)
(Increase)/decrease in creditors (4,841) 3,861
Increase in provisions for liabilities 644 327
Net cash provided by operating activities 10,640 4,389

[2] The impairment charge of £2,005 relating to the properties above was shown as a separate line item on the face of the Statement of Activities and noted as “other expenditure.” This treatment was not in line with the provisions of the Charity SORP and as such the amounts have been reclassed in the comparative period to charitable activities.

24 Related party disclosures

There are a number of independent charities operating in various countries which share the main objectives of Sue Ryder. The charity awards grants to these entities as shown in note 8.

The financial statements of the Group consolidate the results of its 100% subsidiary companies, Sue Ryder Direct Limited, Sue Ryder Lottery Ltd and Woburn Property Investment Company Limited, and subsidiary charity Duchess of Kent House Charity. The Woburn Property Investment Company Limited is dormant and has not traded during the year. The Duchess of Kent House Charity is dormant and within the next 12 months the Trustees intend to wind up the charity.

is dormant and within the next 12 months the Trustees intend to wind up the charity.
2020–21
£000s		 2019–20
£000s
The following amounts are due to the charity from its subsidiary undertakings:
Sue Ryder Direct Limited 978 1334
Sue Ryder LotteryLimited 299 240
Woburn PropertyInvestment CompanyLimited 7 7
During the year the following transactions took place between the charity
and its subsidiary undertakings:
The transfer under Gift Aid of the tradingprofts of Sue Ryder Direct Limited 46 49
The transfer under Gift Aid of the tradingprofts of Sue Ryder LotteryLimited 1,678 2,192
The recharge of costs associated to the use of the charity’s shops for trading by
Sue Ryder Direct Limited		 468 711
Commission charged to the charity by Sue Ryder Direct Limited as agent in regards
the Retail Gift Aid scheme		 83 277

All transaction that occurred during the year between the charity and its subsidiary undertakings were at arms length.

92

93

Financial statements

Financial statements

26 Net income from trading activities of subsidiaries

Sue Ryder has four wholly owned subsidiaries which are incorporated in the UK. The principal activities of the subsidiary Sue Ryder Direct Limited are the sale of new goods and the running of the donated goods Gift Aid scheme. The principal activity of the subsidiary Sue Ryder Lottery Limited is the running of the Sue Ryder Lottery and it holds the Sue Ryder gambling licence. The companies gift their taxable profits to Sue Ryder. Woburn Property Investment Company Limited and Duchess of Kent House Charity are now dormant.

----- Start of picture text -----
||||||||| |---|---|---|---|---|---|---|---| |There was no activity during the current or previous year for Woburn Property Investment Company Limited or the Duchess of Kent House| |Charity. Within the next 12 months, the Trustees intend to wind up the Duchess of Kent House Charity. This means that the accounts were| |prepared in line with FRS 102 but not as a going concern.| |The results for the current and prior year were:|Sue Ryder|Sue Ryder|Sue Ryder|Sue Ryder| |Direct Ltd|Lottery Ltd|Direct Ltd|Lottery Ltd| |EE| |Company number|00889743|09479300|00889743|09479300| |2020–21|2020–21|2019–20|2019–20| |£000s|£000s|£000s|£000s| |Turnover|4,557|1,944|8,959|2,458| |Cost of sales|(2,726)|(253)|(6,327)|(256)| |Gross profit|1,831|1,691|2,632|2,202| |Other expenses|(1,785)|(13)|(2,583)|(12)| |Profit on ordinary activities before tax|46|1,678|49|2,190| |Interest received|-|-|-|2| |Tax on profit on ordinary activities|-|-|-|-| |Profit on ordinary activities after tax|46|1,678|49|2,192| |Qualifying charitable donation|(46)|(1,678)|(49)|(2,192)| |-|-|-|-| |Retained profit for the period|a| |Tangible fixed assets|-|-|2|-| |Net current assets|12|-|10|-| |Total net assets|12|-|12|-| |Share capital|-|-|-|-| |Profit and loss account|12|-|12|-| |I|EE| |C|Shareholder's funds|C,|12|-|OE—————|12|-|

----- End of picture text -----

A subsidiary charity exists, Sue Ryder Care (Chantry), to administer a permanent endowment passed to Sue Ryder by the Charity Commission. The registered office for all subsidiaries is Kings House, King Street, Sudbury, Suffolk CO10 2ED.

Sue Ryder’s Online Bereavement Support makes it easy to connect with the right support.

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Thank you

Thank you

Recognition of our high value supporters

Although we can’t mention everyone who has made our work possible, we’d like to recognise the following donors’ significant support this year.

Trusts:

– The Horne Trust

– The Len Pick Trust

– The Northwood Charitable Trust

– The P F Charitable Trust

Every aspect of Sue Ryder’s work is reliant on voluntary donations to continue. Donations from trusts and major donors are instrumental in helping us provide expert palliative, neurological and bereavement support to people who need it.

Organisations:

Individuals:

Thank you also to the donors who wished to remain anonymous.

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There when it matters

Sue Ryder supports people through the most difficult times of their lives. For over 65 years our doctors, nurses and carers have given people the compassion and expert care they need to help them live the best life they possibly can.

We take the time to understand what’s important to people and give them choice and control over their care. This might be providing care for someone at the end of their life, in our hospices or at home. Or helping someone manage their grief when they’ve lost a loved one. Or providing specialist care, rehabilitation or support to someone with a neurological condition.

We want to provide more care for more people when it really matters. We see a future where our palliative and neurological care reaches more communities; where we can help more people begin to cope with bereavement; and where everyone can access the quality of care they deserve.

For more information about Sue Ryder

call: 0808 164 4572

email: info@sueryder.org visit: sueryder.org

/SueRyderNational

@sue_ryder

Sue Ryder, 183 Eversholt Street, London NW1 1BU

This document is available in alternative formats on request.

Sue Ryder is a charity registered in England and Wales (1052076) and in Scotland (SC039578). Ref. 07218. © Sue Ryder. September 2021.