## **East Anglia’s Children’s Hospices**
_**I’m really not sure where we would be today without EACH, from the phone calls checking in on us, to the day care for Libby and fun days for Jake. They are a part of our life now.**_
## **Contents**
|**3 – 7**|**Trustees’ Report**|
|---|---|
||Our Vision, Mission and Values|
||The Difference We Make and Public Beneft|
|||
|**7 – 21**|**Strategic Report**|
||Our Strategic Objectives|
||Our Key Activities - Care, Income Generation and People & Volunteers|
||Our Financial Performance|
||What We Achieved in 2020-21|
||What We Want to Achieve in 2021-22|
||Engagement with Stakeholders and Business Conduct|
||Trustees’ Responsibilities Statement - Charitable Company|
|||
|**22**|**Consolidated Statement of Financial Activities**|
|||
|**23**|**Consolidated and Charity Balance Sheets**|
|||
|**24**|**Consolidated Cash Flow Statements**|
|||
|**25 – 43**|**Notes to the Financial Statements**|
|||
|**44 – 46**|**Independent Auditors’ Report**|
|||
|**47 – 49**|**Structure, Governance and Management**|
|||
|**50**|**Company Information**|
|||
**Pg 2 • EACH Report and Accounts 2020-21 • www.each.org.uk**
**Trustees’ Report**
## **Our Vision, Mission and Values**
## **OUR VISION**
We aspire daily to lead the way in providing world class care for children with life-threatening conditions. Every child deserves support, alongside their families, whenever and wherever they need it.
## **OUR MISSION**
To improve the quality of life and wellbeing of every child and family under our care, by providing individual and comprehensive services at all times.
**Empathy and understanding** Understanding the views and feelings of others is central to our work relationships and how we interact daily.
**OUR VALUES**
**Make it happen**
We are empowered to and take responsibility for getting things done.
## **Commitment to quality**
We consistently employ our best efforts and strive for the highest standards in everything that we do, always looking for ways to improve.
## **Open and respectful**
We operate in an honest and participative way. Welcoming constructive feedback and different views, we understand the power of words and behaviour and hold ourselves accountable for maintaining a positive and considerate work environment.
## **The Difference We Make**
EACH cares for babies, children and young people with life-threatening conditions and supports their families. Our family-centred approach includes end of life care, specialist symptom management, short breaks, wellbeing activities, mental health therapies, counselling and volunteer services in the family home, all meeting the individual needs of the child, young person and all the family. For families, including those who have been bereaved, we are able to give them the best in the worst possible situation.
**Pg 3 • EACH Report and Accounts 2020-21 • www.each.org.uk**
## **The Difference We Make**
## **Joshua’s story…**
Joshua Howlett sadly died on Friday 24th April 2015. He had only been born on the Monday of that week, but complications cut parents Philip and Rebekah’s time with him to days.
Rebekah said: _“From Josh’s birth on the Monday to his death on Friday, I think we were really in shock the whole time. Although completely devastated, it took us a long time to process what had happened. EACH helped us on our journey.”_
On the Thursday, EACH Counsellor Michelle joined the family and helped putting Josh’s handprints, as well as those of brother Ben, two at the time, on a plate. They also created memory items such as handprints on a plant pot, footprints on a ceramic heart, footprints on a canvas, and hand and foot casts, without which Rebekah would never have discovered Josh had the same wonky toe as hers. The parents now have a handprint in clay for each of their three children, including youngest son James, on display alongside a photo.
When lockdown began EACH started speaking to bereaved parents and relatives by phone. Rebekah received calls every two weeks to start with as the anniversary of Josh’s birthday and death came around. She would usually talk this through in her support group but said: “Being able to talk on the phone has given me the support I’ve needed. I think I have more anxiety as a bereaved parent, but the calls make me feel more confident as a parent.”
Rebekah’s mum, Susan, Josh’s grandmother, attends a grandparents’ bereavement support group at EACH. She added: _“Although we’re a small group we do offer and receive support from each other. It’s a little bit of ‘me’ time with like-minded people. It helps me to open up about the loss of Josh. I’ve received phone calls from EACH, which was quite unexpected at first, but very welcome during lockdown. It was nice to chat with someone from outside the household, lovely to know help is on the end of the phone if needed.”_
Rebekah went on to have counselling sessions for over a year and the family started attending our monthly bereavement group, too.
**Pg 4 • EACH Report and Accounts 2020-21 • www.each.org.uk**
## **The Difference We Make**
## **Libby’s story…**
Three year old Libby Carlin lives with
**Bohring-Opitz syndrome** , a rare genetic condition that affects the development of many parts of the body.
Libby needs 24/7 care and is unable to sit, crawl or walk. She is severely delayed, having to have someone watch her at all times to check she is safe. She also needs postural care, is being treated for seizures and is fed through a feeding tube 16 hours a day.
Before the pandemic Libby and her family would attend EACH for hydrotherapy sessions, music groups and overnight stays. Libby’s brother, Jake, also enjoyed EACH sibling days.
Mum Kirsty said: _“Every part is so important to us, but I feel the day care and overnight stays are the most beneficial for us as a family. It took me a long time to leave Libby in the care of EACH’s amazing team, but once we got to know each other and I could see they knew Libby, and Libby was happy, I was able to relax. I had some time for me again, which took a long while to realise I needed. It also gives us time to spend with Jake doing fun activities or just watching a film. A lot of time_
_has been taken away from him to care for Libby and it’s nice to be able to have that one-on-one time with him. Knowing Libby is in safe hands is a weight off my mind._
_“I’m really not sure where we would be today without EACH, from the phone calls checking in on us to the day care for Libby and fun days for Jake. They are a part of our life now.”_
On the last year, Kirsty said shielding Libby for weeks had been _“tiring, stressful and emotional”_ , but that phone calls from EACH Care Assistant Anna had made a positive difference.
_“Anna has called us a few times and if we’ve been unable to answer she’s always left us a message. She just checks to see how we are, what’s been happening and if there’s anything she can help us with in any way. Just hearing a familiar voice makes everything seem that little bit better and lets us know we haven’t been forgotten.”_
**Pg 5 • EACH Report and Accounts 2020-21 • www.each.org.uk**
## **The Difference We Make Xanthe’s story…**
Fourteen year old Xanthe Carter contracted pneumococcal meningitis, a life-threatening infectious disease that causes inflammation of the layers that surround the brain and spinal cord, and affects only one in 6.5 million children, when she was just nine months old. She had a major stroke as a result.
Parents Hugo and Jessie were told Xanthe would not survive, however, she defied the odds. Xanthe has complex medical needs, including chronic epilepsy, and requires 24/7 supervision. She can speak a few words but is mainly non-verbal.
Xanthe has accessed EACH care since she was three years old. Music therapy sessions have been integral in her having a form of communication and connection she can be in charge of, whilst she has also enjoyed short breaks at EACH. As a family, the Carters attend various Christmas events put on by EACH and enjoy Treefest, an annual music festival in the grounds of the hospice, too.
Otto said: _“When Xanthe goes to the hospice it gives us some time on our own and we can do things my brother and I want with my mum and dad that sometimes Xanthe wouldn’t enjoy or want to do. It gives everyone a chance to do their own things as well. Without the hospice things wouldn’t be easy because Xanthe wouldn’t have her own time to have one-toone care and do the things she likes._
_“I really like the siblings days when we make things to take home. They always have really fun activities. I remember the Easter day when we made lambs from marshmallows, which was really fun. I like to be with my friends who have brothers and sisters like mine. No-one else at school has, so it’s good to have friends who understand what it’s like sometimes. It’s nice to have a special day just for the brothers and sisters, and I feel proud to be a carer for my sister.”_
Xanthe’s brothers, Milo, 15, and Otto, nine, have both attended EACH sibling days.
**Pg 6 • EACH Report and Accounts 2020-21 • www.each.org.uk**
## **Public Benefit Statement**
In setting its objectives and planning its activities and services, the Board has given careful consideration to the Charity Commission’s guidance on the Public Benefit Requirement under the Charities Act 2011. Access to services is based solely on need and no charges are made to families for any services provided.
The Board considers that the charity meets the two important principles of the public benefit requirement. Pages 4 to 6 detail activities carried out by the charity to further its purpose for public benefit and also provide feedback from families demonstrating the difference the charity’s activities made.
## **Strategic Report Our Strategic Objectives**
Our key strategic objectives, which were revised this year, are to:
- Implement flexible strategies and contingencies, with clearly defined plans for service delivery, people, organisation design, resources and income generation.
- Re-establish all operational delivery embedding, where relevant, learning from the pandemic.
- Re-establish supporter activity, engaging new and lapsed supporters through excellent stewardship and developing innovative fundraising initiatives to grow income.
- Re-establish our retail operations, recover our trading margin and continue to accelerate the growth of e-commerce.
- Maintain a strong public profile, including building awareness around the need for increased statutory funding for children’s hospices.
- Develop the Board ensuring all members receive relevant training to carry out their roles and build on their personal leadership skills, and to create a cohesive and effective strategic leadership body to take the charity forward. This will include recruiting a new Chair for the Board.
**Pg 7 • EACH Report and Accounts 2020-21 • www.each.org.uk**
## **Our Key Activities**
## **Our Care**
In response to the wide-ranging COVID-19 lockdown initiated on 23rd March 2020, the delivery of our care services changed rapidly to ensure the safety of vulnerable children and their families, and to comply with the mandatory stay-at-home guidance.
Whilst emergency and end of life care continued at families’ homes and in the hospices, all other face-to-face care and support activities paused. We then effectively relaunched as a ‘virtual hospice’, delivering wellbeing groups & activities and counselling & therapies using video online platforms, by phone and through activity films shared via the EACH website.
To support the NHS hospital bed capacity and help keep very vulnerable children safe, a small number of children were transferred to the hospices or received their treatment with us at one of our hospices. In addition, the work of the specialist symptom management nursing service meant that 178 hospital admissions and 215 calls to GP services were prevented. This was critical to both families and the NHS at a time when it was at its busiest.
Staff and families adapted incredibly well to the situation we found ourselves in. However, for families, as weeks became months, the toll of the pandemic and resulting lockdowns became more evident. Families talked about
their concerns about who would care for their child if they became ill. They also shared their frustration at not being able to access Personal Protection Equipment (PPE) for their local external community care staff, which meant they were left on their own caring for their child 24 hours a day. Newly bereaved families struggled with not having the funeral they wanted for their child and not being able to be with family and friends at a time they needed them most. Families were feeling isolated and alone.
Whilst we were able to provide support online it was clear we needed to provide more planned short breaks as well as emergency care as soon as it was safe to do so. During the autumn, we were able to start offering this vital element of our service in the hospices and at home, for both day and overnight care.
We also learned that, for some families, having access to online support suits them better than having sessions at the hospice or in their home, and we will be continuing to offer this choice moving forwards.
The events of the past year have not only reminded us of the importance of the services we provide to children and their families, but also how they can easily be forgotten in a system designed to care for the ‘many’ rather than the ‘few’, and yet these ‘few’ children are some of the most vulnerable and have the most complex healthcare needs.
|**The number of individuals we supported**
Lead child or young person
Number of attendees at universal wellbeing groups and activities
Children, young people and families who received care at end of life
_Location of death: home 14; hospice 7; hospital 14_|458
756
35|
|---|---|
|||
|**The sessions of care and support we delivered**
End of life care, short breaks and nursing care:
• in the community
• in hospices overnight
• day care sessions in the hospices
Number of universal wellbeing groups and events
Symptom Management Nursing Service (SMNS) preventables
_(no. of occasions a GP visit or admission to hospital were avoided for a family due to an SMNS intervention)_|101
889
200
88
393|
**Pg 8 • EACH Report and Accounts 2020-21 • www.each.org.uk**
## **Clinical Training Education and Research**
Because of the pandemic’s lockdown restrictions, our training programme was adapted significantly. Wherever possible training was delivered online and via e-learning programmes. Face-to-face education and training critical to clinical and non-clinical health and safety was delivered within COVID-secure working guidelines.
The following mandatory training was provided for all care staff:
Resuscitation and Anaphylaxis; Moving and Handling; Infection Control; Safeguarding Children; Safeguarding Adults; Preventing Radicalisation Level 3; Management of Oxygen; Fire Safety; Food Hygiene; Data Security Awareness e-learning.
Over the past 12 months we supported 13 applications from care staff to undertake training at one-day, extended study learning and development activities, and attendance at virtual conferences.
A total of 216 external professionals benefitted from training and education events provided by The East of England Managed Clinical Network (MCN), hosted by EACH.
Care staff had academic work accepted for journals and presentation at national meetings as follows:
- End of Life Discussions. How to do this well. Talking parents through death. C Norman presented at the Northern Ireland ECHO Knowledge Network Meeting.
- Emergency Response End of Life Care Symptom Control Guidance for use in the COVID-19 MCN (April 2020). L Maynard and P Sartori.
- Neonatal Palliative Care and Symptom Management. National Neonatal Network. L Maynard.
Over the past 12 months EACH has participated in the following research:
- Children’s Palliative Care Outcome Scale (CPOS) Delphi Study. Kings College, London and Cicely Saunders Institute of Palliative Care.
- Feasibility of a randomised clinical trial of transmucosal diamorphine versus oral morphine for breakthrough pain in children and young people with life-limiting conditions (DIPPER study). Looking at the best needlefree pain medicine for young patients (short title). University College London (UCL).
- Crisis Prevention rather than Crisis Management; the Health of Mothers of Children with a Life-Limiting Condition. York University and the Martin House Research Centre.
## **Our Income Generation**
Over the last year our income generation activities came under severe pressure. Our shops were closed for 30 weeks of the calendar year due to national lockdowns, and the impact on our supporter activity has been dramatic; our events were cancelled for over a year and income, particularly from corporate and community supporters, was significantly impacted.
In the face of these pressures we adapted our ways of fundraising, including online, and had overwhelming public fundraising support. Our thanks go to our loyal supporters who supported EACH throughout a very difficult year. Particular highlights included:
£469,066 was received in voluntary donations in response to our COVID emergency fundraising appeal.
£146,466 was raised from our Celebrity Bottom Drawer Auction with the incredible support of Griff Rhys Jones and many other celebrities across the country.
£61,700 was raised from a fine art auction with the wonderful support of Davina Barber and a wealth of art donations.
£311,131 was raised from our eBay shop which despite the closures within our high street shops still achieved growth of 28% on the previous year.
- The SHARE STUDY: How to **S** upport c **H** ildren with a life-limiting condition and their p **AR** ents during the COVID-19 outbreak: understanding **E** xperiences, information and support needs, and decision-making - University of Southampton, York University, the Martin House Research Centre, Together for Short Lives, Southampton University Hospital NHS Trust and Leeds Teaching Hospitals NHS Trust.
**Pg 9 • EACH Report and Accounts 2020-21 • www.each.org.uk**
## **Charitable Trusts**
Every year we receive incredible support from many charitable trusts and foundations, and we really appreciate all those who make the decision to donate to EACH. For our financial year 2020-21, we are especially grateful to the following:
Ben and Jane Du Brow, Cambridgeshire Community Foundation, Colchester Catalyst Charity, Essex Community Foundation, Harry-Krish Mootoosamy Foundation, Harwich and District Fellowship for the Sick, Jessie’s Fund, Rugby Group Benevolent Fund, ShareGift, St Lawrence Parish Hall Trust, Tesco Bags of Help, The Alan Boswell Group Charitable Trust, The Albert Hunt Trust, The Company of Actuaries Charitable Trust Fund, The Dudley and Geoffrey Cox Charitable Trust, The Earle & Stuart Charitable Trust, The Ellerdale Trust, The February Foundation, The Fence Club Trust Fund, The John Coates Charitable Trust, The Lady Hind Trust, The Lord Belstead Charitable Trust, The Music Sales Charitable Trust, The Northwick Trust, The Peter Dixon Charitable Trust, The Sir Jules Thorn Charitable Trust, The Spurrell Charitable Trust, The Thompson Family Charitable Trust, The True Colours Trust.
## **Complaints and concerns in relation to our fundraising activities**
Throughout 2020-21, we received a total of 10 complaints relating to fundraising activities. While we take these complaints seriously and are always looking for ways to improve, the number of complaints as a percentage of our activity is exceptionally low.
**Pg 10 • EACH Report and Accounts 2020-21 • www.each.org.uk**
## **Our Fundraising Standards**
We are registered with the Fundraising Regulator and we are committed to our Fundraising Promise.
The Board of Trustees, our Management Executive and staff are focused and committed to ensuring we build the best possible relationships with our donors, relationships built on trust and respectful fundraising practices.
We strive to ensure giving to charity is the great experience we believe it should be.
We take our responsibilities to our supporters very seriously. With the help of our valued fundraising volunteers, we undertake a diverse range of income generation activities and our fundraising programme includes: Trust fundraising, corporate fundraising with businesses and organisations, community fundraising with individuals and groups, and direct marketing through letter, telephone, face-to-face lottery and direct debit programmes, where we engage the services of partner agencies to gain the best value for money and to ensure reliable high-quality delivery.
We inform our fundraising partners of their obligations to ensure fundraising in our name is conducted to the highest possible standards.
We have developed a range of quality assurance mechanisms to monitor activities undertaken on behalf of EACH, including supporter feedback, complaints ratios and regular activity reviews.
We regularly evaluate our policies and procedures. Our overarching corporate policy and processes based on best practice identify, respect and protect vulnerable supporters and other members of the public from undue pressure, unreasonable intrusion and unreasonably persistent behaviour in connection with our fundraising activity.
Guidance for fundraising on protecting vulnerable supporters is followed across all our fundraising activities and our fundraising agencies are trained on protecting vulnerable people. This is monitored closely alongside our other policies to ensure we are operating the best fundraising standards.
## **Our People and Volunteers**
## **Our People**
EACH has a diverse workforce of 330 employees and 50 bank staff employed across predominantly three hospice locations, 44 retail outlets and a central services team based at Milton, Cambridgeshire.
Staff profiles are a mix of professional care roles; nurses, care assistants, clinical nurse specialists, counsellors, therapists and play specialists. Retail roles include retail store managers, retail assistants and online retail specialists. Professional services roles include finance, human resources, marketing and communications, fundraising and facilities. Career progression across the organisation is encouraged.
Employees work collaboratively and are inspired to be involved and empowered. Feedback is shared via twiceyearly formal appraisal meetings and informally on a regular basis. Employees have been working from home successfully during the pandemic, where possible, and hybrid working will continue as the lockdown restrictions come to an end. In 2021, EACH is working to achieve Investors in People Accreditation.
## **Our Volunteers**
Volunteers are a hugely valuable and integral part of EACH’s workforce and complement the work of our employees. EACH benefits from the time donated by over 1,600 volunteers undertaking many varied roles and key activities. This includes practical support in the family home, sibling support, fundraising, events, housekeeping, gardening, maintenance, reception, friends groups, administration and across the EACH shops and our Retail Distribution Centre. We are very fortunate to benefit
from the vast experience across our large volunteer base and the experience is very fulfilling for our volunteers.
_For full details of our supporter standards, including a link to our Fundraising Promise, visit www.each.org.uk/ supporterstandards._
**Pg 11 • EACH Report and Accounts 2020-21 • www.each.org.uk**
## **Our Financial Performance**
To provide high quality services for children, young people and families it is essential the charity has sufficient resources to achieve this. No charges are made to those using our services and we are dependent on raising funds through individual giving, fundraising, retail, legacies, charitable trusts and government funding.
## **Income and Expenditure in 2020-21**
Against a backdrop of significant financial uncertainty throughout the year, the charity’s accounts are in a positive position at 31st March 2021, with a gain in net income from operational activities of £1,795,227.
As the year began and the pandemic took hold, the charity’s financial forecasts suggested there would be a significant deficit by the end of the year. This position changed as the charity reacted to the constantly changing environment and put in place measures to replace lost income, reduce expenditure and take advantage of emergency funding.
Lost income, primarily from closed shops and cancelled fundraising events and activities, were initially replaced with an emergency fundraising appeal. A significant proportion of the retail and fundraising teams were placed on furlough, along with some administration and support roles.
Government grants became available throughout the year to support closed shops and further funding was provided by NHS England, through Hospice UK, to provide additional bed capacity during the pandemic and to provide community support for people with complex healthcare needs.
Total income for the year was £14.3m. Compared to the previous year we saw a decrease of £550k in donations, a decrease in charitable trust income of £292k and a reduction in legacy income of £588k. Legacy income was significantly reduced in 2020-21, however, the pipeline for this income remains robust. As a result of the pandemic, executors have taken longer to convert estates to cash which has impacted the charity’s income and cash flow.
Total expenditure was £12.5m compared to £13.4m in 2019-20. This was due to lower fundraising expenditure of £514k, mainly due to the cancellation of events because of the pandemic, lower retail and trading costs of £251k, resulting from savings made while shops were closed during lockdown, and lower expenditure on charitable activities due mostly to holding vacancies and implementing cost saving measures.
Following a dip in investment income at the end of the previous year, investments have performed well under the management of our investment advisers, with an increase of 23% over the year.
The surplus made in 2020-21 has been transferred into a COVID Recovery Reserve.
**Pg 12 • EACH Report and Accounts 2020-21 • www.each.org.uk**
## **Where we receive our income**
## **Where we spend it**
|||
|---|---|
|**Where we receive our income**|**Where we spend it**|
|**Community**
£3,045,805
**Corporate**
£595,389
**Trusts**
£942,885
**Legacies**
£1,102,611
**Statutory**
£4,598,774
**Retail & Trading**
£2,168,169
**Other**
£1,881,639
**Total**
**£14,335,272**|**EACH Milton**
£2,131,094
**EACH The Treehouse**
£2,278,546
**EACH The Nook**
£2,872,566
**Fundraising, publicity &**
**investment**
£1,244,412
**Retail & Trading**
£ 4,013,427
**Total**
**£12,540,045**|
|||
**Pg 13 • EACH Report and Accounts 2020-21 • www.each.org.uk**
## **Funds and Reserves**
In accordance with Charity Commission guidance, EACH Trustees have determined a policy for reserves. The EACH policy requires that:
**Restricted Funds** must be used for the purpose for which they were intended under the direction of the donor. At the year end the value of Restricted funds was £75k (2020: £0).
**Designated Funds** should include a capital reserve, funds to cover planned capital expenditure, development projects or other costs and sufficient funds to provide working capital. In addition, Trustees have allocated funds to a designated COVID Recovery Reserve.
- The capital reserve, or funds represented by assets at 31st March 2021 representing the net book value of fixed assets owned by the charity amounted to £17.1m (2020: £17.2m).
- Designated funds for planned capital expenditure at 31st March 2021 were £600k (2020: £400k).
- A COVID Recovery Reserve of £2.5m (2020: £0) has been set aside this year to cover the expected cost of achieving to a balanced budget over the next three years.
**Contingency Reserves** should be in place to protect the charity from fluctuations in income and expenditure, and ensure sufficient funds are available to deliver high quality services. EACH Trustees have reviewed the charity’s requirement for contingency reserves by considering the potential financial impact of:
- Fluctuations in income generation by considering historic trends and projections, and looking at the risks associated with variations in different income streams.
- Reviewing the operational requirement for cash to meet expenditure obligations and considering the minimum level of cover required to ensure that operations are not interrupted.
- Reviewing current risks, particularly those associated with the pandemic.
- Considering the impact of a sudden crisis which might require the charity to close, including calculations for potential redundancy payments, contractual commitments, liabilities and dilapidation costs offset by a prudent estimate for the market value of assets owned.
As a result of this review, EACH Trustees determined that for ongoing operational security the charity should aim to set aside the greater of £4m or four months planned expenditure for the forthcoming year as a contingency reserve.
The contingency reserve at 31st March 2021 was £4.8m (2020: £4m). This is equivalent to four months expenditure planned in 2021-22. The reserves policy is therefore fully funded.
**Free Reserves** at the year-end amounted to £568k (2020: £1.5m). This is sufficient to cover working capital requirements only.
|EACH Funds as at 31st March 2021|Designated|Restricted|Free reserves|**Total**|
|---|---|---|---|---|
|Funds represented by assets
Contingency Reserves
Planned capital expenditure
Covid Recovery Fund
Restricted Funds
Free reserves (working capital)|17,112,567
4,835,929
600,000
2,500,000
-
-|-
-
-
-
75,026
-|-
-
-
-
568,472|17,112,567
4,835,929
600,000
2,500,000
75,026
568,472|
||25,048,496|75,026|568,472|25,691,994|
**Pg 14 • EACH Report and Accounts 2020-21 • www.each.org.uk**
## **Investment Policy and Performance**
The charity’s investment policy requires the charity to invest funds in such a manner that the risk profile reflects planned expenditure and future plans. Investment managers are appointed by the Board following a selection procedure. J M Finn currently manages the charity’s investments.
The performance benchmark is monitored against a 70% equity : 30% gilts ratio. For the year ending 31st March 2021 the portfolio appreciated by 23.2% against a benchmark return of 17%.
## **Key Risks and Uncertainties**
The Board undertakes continual assessment of the principal risks facing the charity and they are satisfied that adequate controls and procedures are in place to mitigate these risks. The Audit Risk and Compliance Committee is responsible for overseeing the approach to risk across the whole of the charity’s activities.
The charity uses a risk management system to assess and report risk at both an operational and strategic level. All risks identified are logged and assessed as raw risks; mitigation and controls are then applied with the aim of reducing risk to an acceptable level.
Risks are scored based on impact and likelihood, and any risk scoring a red RAG rating is reported to the Board through the Board Assurance Framework (BAF). Operational risks are managed by the relevant manager or clinician. The Management Executive reviews the BAF every month and the Board Committees review the strategic risks relevant to them at their quarterly meetings. Trustees also carry out a full review of strategic risks annually.
The key risk areas identified by the Board are:
- The impact of COVID-19 on service delivery, our financial position and the welfare of staff, volunteers and all those connected to the charity.
- The risk of failure to provide care of the required quality resulting in potentially unsafe, ineffective care and/or poor families’ experience.
- The risk that EACH cannot fund its charitable objectives and strategic plan.
- The risk that financial resources are adversely affected by external factors.
- The risk of a significant adverse event which could damage reputation, including the potential for social media or online platforms to accelerate adverse publicity.
- The risk of failing to fulfil statutory obligations or failure to comply with applicable legislation.
- The risk that the Board does not have a strategy to deliver the charitable objectives.
- The risk of failure to recruit or retain appropriate staff or that staff motivation is adversely affected.
All the above risks have been reviewed by the Trustees who have accepted the risks and consider that the controls and mitigation in place for each risk area are appropriate.
**Pg 15 • EACH Report and Accounts 2020-21 • www.each.org.uk**
## **What we achieved in 2020-21**
Our primary objective for 2020-21 was to re-establish our operations and ensure organisational sustainability in the short and longer term and respond to the impact of COVID-19. This was specifically aimed at addressing sustainability of service provision, our workforce and the financial position.
To do this, the following areas of focus were implemented:
## **1. Re-establish the delivery of our range of services for all families, as soon as it safe to do so, including new and innovative ways of working.**
All service elements, except for hydrotherapy, were made available to families albeit it in a different way because of the pandemic. Emergency and end of life care continued throughout. Short breaks were re-established in the hospices and family homes. In line with government guidance, wellbeing support continued to be offered virtually via online video platforms, by phone and through the EACH website
As for many other healthcare and hospice
organisations, the recruitment of nurses remained a key challenge. This impacted on our ability to deliver the volume of short breaks we needed to. A priority for the coming year is to implement a range of measures to attract and retain nurses, and to upskill our care assistant workforce to increase the amount of care we can offer.
**2. Support our staff to work as effectively as they can through changed ways of working, and by promoting their wellbeing.**
Shortly after the first lockdown, a new home working policy was implemented together with the tools and technology required to make it highly effective for employees to work from home.
We issued a weekly communication to all-staff that included an up-to-date COVID-19 information and Q&A document. This continued throughout the year and also included a COVID wellbeing bulletin. We received extremely positive feedback from staff who were grateful to be kept fully informed during such a challenging time.
All EACH workplaces were regularly COVID-19 risk assessed and appropriate PPE and COVID-testing measures implemented.
We enhanced the Employee Assistance Programme offering so rather than just having a signposting service, employees could gain emotional, practical and legal advice and support via the service, as well as virtual face-to-face counselling if needed.
During the year, we furloughed a total of 184 members of staff, 86 of whom were placed on a flexi-furlough basis at different times. All furloughed employees’ salaries were topped up to 100% of earnings throughout and they received a weekly staff communication with information and wellbeing documents.
**3. Re-establish and support our volunteers as they all return to their valuable roles.**
During periods of national lockdown, the vast majority of our volunteers were stood down from their duties. This included hospice-based, Help at Home, fundraising and retail volunteers. The only exception was a small number who were deemed essential to business need.
Regular ‘keep-in-touch’ postal and email
communications were sent to volunteers throughout the year, to let them know we were thinking of them, update them with key EACH news and to offer reassurance. We also took this opportunity to administer annual mandatory training.
As we emerged out of each period of lockdown we carefully returned volunteers to their roles, if they were happy to do so. All members of staff supporting volunteers were provided with a returning checklist, and volunteers were provided with a summary of our COVID-19 measures and refresher training, as required. We also introduced regular testing for hospice-based and Help at Home volunteers.
Although not all volunteers had been able to return to their roles by the end of the year, volunteer numbers were sustained (April 2021: 1,672 (April 2020: 1,660)).
**4. To continually evaluate the changing financial landscape, anticipate trends and respond to external influences as they occur, whilst working towards re-establishing financial stability through a balanced budget and restoration of reserves in line with the EACH reserves policy.**
Due to the pandemic the necessity to monitor the changing financial landscape was heightened. Multiple forecasts and re-forecasts were carried out and plans put in place to protect resources. An emergency
**Pg 16 • EACH Report and Accounts 2020-21 • www.each.org.uk**
fundraising appeal was launched and cost reduction measures put in place. The number of fleet cars was reduced, some of our suppliers responded to requests for reductions in costs and many of our landlords kindly suspended rent for all or part of the periods of lockdown.
A budget for 2021-22 has been approved by EACH Trustees which forecasts a deficit of approximately £1m for the coming year. It is anticipated this will be a more difficult year given no additional emergency funding is expected.
Reserves have been designated to cover the deficit without impacting on the charity’s contingency reserves, which remains fully funded. It is anticipated it will take more than one year to return to a balanced budget following the impact of the pandemic.
**5. Re-establish our retail operation and support our fundraising team to optimise income generation, including in new and different ways.**
Due to national lockdowns our shops were closed for a period of 30 weeks during the financial year. Following the first national lockdown all 43 of our shops reopened in July/August 2020, in a phased approach, as we developed new safety measures to ensure a safe but enjoyable shopping experience for our customers.
Against a backdrop of limited customer numbers permissible in our shops and low consumer confidence in high street shopping, we traded at -5.7% like-for-like sales during the open period. Following the lessons learned in our return to trading, we were able to reopen all 43 shops on day one following the second national lockdown and put in place plans to do likewise following the third lockdown.
Due to continued difficult trading levels (pre-COVID), we closed our Stowmarket shop during the year, but prepared to open a new shop in Royston, Hertfordshire.
We continued to grow our eCommerce during the financial period, with our eBay shop growing by 28% on the previous year. We also established a new Amazon shop and launched ‘Style with EACH’ on the Asos Marketplace platform.
Our fundraising was equally challenged during the financial year; our EACH events were all postponed to 2021 and the majority of our supporter events and activities were cancelled or curtailed.
To compensate for the lost income, we launched a large variety of alternative events and activity including virtual quiz nights, auctions, balloon races, and challenges such as 2.6, EACH Mile Counts and Captain Tom 100.
We were overwhelmed with public support in response to our COVID emergency appeal that raised £469,066 in voluntary donations and our subsequent appeals also performed significantly better than in previous years.
In addition to this public support, the response to emergency grant applications and the generosity and uplift from some of our regular charitable foundations saw our Trust fundraising increase substantially on the previous year. This helped compensate further for the loss in fundraised income.
## **6. Maintain a strong public profile including an awareness of our care services.**
We continued to benefit from a significant amount of media coverage, taking in local, regional and national print, online and broadcast media. Our relationships with all existing and new media contacts strengthened further during the year.
We benefitted from a wealth of coverage from the point of lockdown, with reactive and proactive media engagement around the organisation’s response to the pandemic. Notably how we were adapting our service for the benefit of children and families, our ongoing support for staff and volunteers, telling the stories of families using our services, and the financial uncertainty arising from the pandemic and need for continued public support. This contributed significantly towards the awareness of our care services and the need for voluntary income generation.
We were able to positively promote many fundraising and retail campaigns, showcase examples of innovative care delivery and build on the opportunity to raise awareness regionally, nationally and globally (through our Royal Patronage).
In addition to the media, our social media channels were used effectively on a daily basis throughout, gaining increased following across all platforms and maintaining high levels of reach and positive public engagement.
**Pg 17 • EACH Report and Accounts 2020-21 • www.each.org.uk**
## **What we want to achieve in 2021-22**
- Engage with families, staff, trustees and our external partners to redefine our 3-year strategy.
- Increase the provision of nursing care short breaks for families.
- Develop online delivery of elements of the care model, providing families greater choice and increased access to the support they need.
- Develop and deliver a new EACH website and relevant social media presence.
- Deliver a new People strategy to develop our workforce and achieve Investors in People accreditation.
- Deliver a new Fundraising strategy to develop sustainable income streams.
- Proactively prioritise and engage active and lapsed supporters.
- Leverage our mission and compelling charitable cause to acquire new supporters and uplift existing ones.
- Accelerate the development of new products and fundraising initiatives that are resilient to COVID restrictions.
- Support staff to re-open our retail operation, improve volunteer recruitment, open four new shops, develop the e-commerce champion programmes and reduce costs.
- Monitor and evaluate the charity’s financial position and respond flexibly.
- Support Trustees to develop their knowledge of children’s palliative care and charity governance through training and close working with the Management Executive.
- Put in place a robust process to recruit a new Chair to the Board of Trustees.
**Pg 18 • EACH Report and Accounts 2020-21 • www.each.org.uk**
## **Engagement with Stakeholders and Business Conduct**
The Trustees consider they have complied with their duties in section 172 of the Companies Act (2006), by acting in good faith and focusing on the organisation’s charitable purpose in the short and long term regarding all stakeholders who interact with the charity. Activities have included:
## **Children, young people and families**
Continued engagement with and seeking feedback on the development of our services from the children, young people and families we provide care and support to. This includes via Family Forums, by e-newsletter, with digital resources, a dedicated Family Zone section on the EACH website, and through face-to-face interaction, text messaging, surveys and printed materials.
## **Supporters**
We are committed to ensuring we build the best possible relationships with our supporters, relationships built on trust and respectful fundraising practices. We have developed a range of quality assurance mechanisms to monitor activities undertaken on behalf of EACH, including supporter feedback, complaints ratios and regular activity reviews. Our policy and processes identify, respect and protect vulnerable supporters and other members of the public from undue pressure, unreasonable intrusion and unreasonably persistent behaviour in connection with our fundraising activity. This is monitored closely alongside our other policies to ensure we are operating the best fundraising standards.
## **Suppliers**
We have strict policies and standard operating procedures in place to ensure we maintain fair and professional relationships with all our suppliers, including to allow and control fair tender process and supplier selection.
## **Employees**
Engagement with staff included responding proactively to employee survey data, and valuing and promoting high quality internal communications. We responded promptly to the safe working requirements and communications required as a result of the pandemic. This included ensuring all employees and volunteers had access to support from colleagues and were regularly communicated with on a one-to-one basis and/or via print and digital communications. Equipment, including PPE, was provided where needed.
## **High standards of business conduct**
Trustees receive high quality management information and are supported in their decision-making processes to enable them to lead on developing the organisation’s long-term strategy. Our activities are highly regulated, and we maintain the highest levels of business conduct with effective internal controls. All three of our hospices are rated as ‘Outstanding’ by the Care Quality Commission (CQC). During the year, the CQC also carried out their transitional monitoring arrangements assessment and there were no concerns raised. There is effective monitoring of income and expenditure, with regular reporting at all levels up to and including the Board. Clear terms of reference exist for our Board and its various committees, with reviews of Board effectiveness and a policy on Board rotation. All our work is underpinned by our organisational values of Empathy and Understanding, Open and Respectful, Make it Happen and Commitment to Quality.
Our Royal Patron, HRH The Duchess of Cambridge, visiting The Nook as part of Children’s Hospice Week 2020.
The Duchess helped families plant a patio garden, including a special sunflower in memory of nine-year-old Fraser Delf.
**Pg 19 • EACH Report and Accounts 2020-21 • www.each.org.uk**
## **Impact on the environment**
Trustees consider the impact on the local community in which the charity operates, and the environmental impact of activities. This has included further developing our work on reducing the environmental impact of the charity and putting in place energy saving measures at many locations.
## **Energy efficiency actions**
We are committed to responsible energy management and will practise energy efficiency throughout our organisation, wherever it is cost effective. We recognise that climate change is one of the most serious environmental challenges currently threatening the global community and we understand we have a role to play in reducing greenhouse gas emissions.
We implemented the following policies which increased energy efficiency in the financial year.
- Closure of the Ipswich fundraising office; staff relocated to a hospice site.
- Hydrotherapy pools turned off during periods of low utilisation.
- Hybrid working practises adopted; combination of home and office working.
- Travel minimised by extensive use of video conferencing for meetings.
- Some care services delivered virtually thereby significantly reducing travel.
## **Methodology used in the calculation of disclosures**
SECR methodology as specified in ‘Environmental reporting guidelines: including Streamlined Energy and Carbon Reporting and greenhouse gas reporting’ used in conjunction with Government GHG reporting conversion factors.
- Site rationalisation:
- Closure of the Milton office; staff relocated to a hospice site.
|**Statement of Carbon Emissions in Compliance with**
**Streamlined Energy and Carbon Reporting (SECR)**|April 19 –
March 20|April 20 –
March 21|%
difference|
|---|---|---|---|
|Total energy use covering electricity, gas, other fuels and transport (kWh)
Total emissions generated through combustion of gas (tCO2e)
Total emissions generated through use of purchased electricity (tCO2e)
Total emissions generated through use of other fuels (tCO2e)
Total emissions generated through business travel (tCO2e)
Total gross emissions (tCO2e)
Intensity ratio - total gross emissions (kgCO2 per sqft)
Intensity ratio - transport emissions (kgCO2 per mile)|2,886,596
188.67
287.97
-
204.15
680.79
3.98
0.30|2,048,631
73.52
201.58
-
64.93
440.03
2.96
0.32|-29.03%
-8.03%
-30.00%
-
-68.19%
-35.36%
-25.63%
+6.67%|
Covering energy use and associated greenhouse gas emissions relating to gas, electricity and transport, intensity ratios and information relating to energy efficiency actions.
Small increase in transport intensity ratio was due to increased proportion of miles travelled by transit van type vehicles.
**Pg 20 • EACH Report and Accounts 2020-21 • www.each.org.uk**
## **Trustees’ responsibilities statement – charitable company**
## **Statement of Directors’ Responsibilities**
The Trustees (who are also directors of East Anglia’s Children’s Hospices for the purposes of company law) are responsible for preparing the Trustees’ Annual Report [(including the Strategic Report)] and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the Trustees to prepare financial statements for each financial year. 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 charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the Trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP 2019 (FRS 102);
- make judgements and estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
In so far as the Trustees are aware:
- there is no relevant audit information of which the charitable company’s auditor is unaware; and
- the Trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information.
The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
## **Auditors**
The Board recommends to the AGM that Price Bailey LLP should continue to be engaged as auditors for the forthcoming financial year.
## **BY ORDER OF THE BOARD**
## **Ruth Kiani**
## **Secretary**
**Date: 29th July 2021**
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in operation.
The Trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company 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 charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
**Pg 21 • EACH Report and Accounts 2020-21 • www.each.org.uk**
## **Consolidated Statement of Financial Activities (incorporating an income and expenditure account) for the year ended 31st March 2021**
||Note|General
£|Designated
£|Restricted
£|2021
Total Funds
£|2020
Total Funds
£||
|---|---|---|---|---|---|---|---|
|**Income:**
Donations and legacies:
Donations
Trust Income
Legacies
Income from charitable activities
Income from retail and
other trading activities
Investment income
Other income
**Total Income**
**Expenditure:**
**Cost of raising voluntary income**
Fundraising
Costs of goods sold and retail costs
Investment management costs
**Expenditure on**
**charitable activities**
**Total expenditure**
**Net income from operational**
**activities for the year**
Net gains/(losses) on investments
**Net income for the year**
Transfers between funds
**Net movement in funds**
**Reconciliation of funds:**
Total funds brought forward
**Total funds carried forward**||3,577,010
763,353
831,191|
-
-
-|
64,184
179,532
271,420|
3,641,194
942,885
1,102,611|
4,191,026
1,235,301
1,690,689||
||1
1
10
1|5,171,554
2,621,711
2,168,169
100,582
1,781,057|-
-
-
-
-|515,136
1,977,063
-
-
-|5,686,690
4,598,774
2,168,169
100,582
1,781,057|
7,117,016
2,370,660
4,896,877
129,120
753,623||
|||11,843,073|-|2,492,199|14,335,272|15,267,296||
||2
2
2|1,223,627
4,013,427
20,275|-
-
-|510
-
-|1,224,137
4,013,427
20,275|
1,738,110
4,263,969
19,641||
|||5,257,329|-|510|5,257,839|
6,021,720||
||2|4,114,751|700,792|2,466,663|
7,282,206|
7,409,472||
||2|9,372,080|700,792|2,467,173|
12,540,045|13,431,192||
|||2,470,993
742,168|(700,792)
-|25,026
-|
1,795,227
742,168|
1,836,104
(299,989)||
||19|3,213,161
(4,167,712)
(954,551)|(700,792)
4,117,712
3,416,920|25,026
50,000
75,026|
2,537,395
-
2,537,395|
1,536,115
-
1,536,115||
|||1,523,023|21,631,576|-|23,154,599|21,618,484||
|||568,472|25,048,496|75,026|25,691,994|23,154,599||
|||||||||
All amounts relate to continuing activities of the group. The Statement of Financial Activities includes all gains and losses recognised in the year. The notes to the accounts are shown on pages **25 - 43**
**Pg 22 • EACH Report and Accounts 2020-21 • www.each.org.uk**
**Consolidated and Charity Balance Sheet as at 31st March 2021**
|||Group|Group|Charity|Charity|
|---|---|---|---|---|---|
||Notes|
2021
£|2020
£|2021
£|2020
£|
|**Fixed assets**
Tangible assets
9
17,112,567
17,231,576
17,112,567
17,231,576
Investments
10
4,321,649
3,505,028
4,321,649
3,505,028
21,434,216
20,736,604
21,434,216
20,736,604
**Current assets**
Stock
18,909
6,825
-
-
Debtors
15
2,990,740
2,655,059
3,009,257
2,652,281
Cash
2,641,109
1,305,660
2,630,805
1,299,347
5,650,758
3,967,544
5,640,062
3,951,628
**Liabilities**
Creditors due within one year
16
(1,392,980) (1,549,549)
(1,382,285)
(1,533,634)
**Net current assets**
4,257,778
2,417,995
4,257,777
2,417,994
**Total net assets**
25,691,994 23,154,599
25,691,993
23,154,598
**The funds of the charity:**
Restricted income funds
19
75,026
-
75,026
-
Designated funds
19
7,935,929
4,400,000
7,935,929
4,400,000
General funds
19
568,472
1,523,023
568,471
1,523,022
Capital Reserve
19
17,112,567
17,231,576
17,112,567
17,231,576
**Total unrestricted**
25,616,968 23,154,599
25,616,967
23,154,598
**Total funds**
19
25,691,994 23,154,599
25,691,993
23,154,598|9
10|17,112,567
4,321,649|17,231,576
3,505,028|17,112,567
4,321,649|17,231,576
3,505,028|
|||21,434,216|20,736,604|21,434,216|20,736,604|
||15|18,909
2,990,740
2,641,109|6,825
2,655,059
1,305,660|-
3,009,257
2,630,805|-
2,652,281
1,299,347|
|||5,650,758|3,967,544|5,640,062|3,951,628|
||16|(1,392,980)|(1,549,549)|(1,382,285)|(1,533,634)|
|||4,257,778|2,417,995|4,257,777|2,417,994|
|||||||
|||25,691,994|23,154,599|25,691,993|23,154,598|
||19|75,026|-|75,026|-|
||19
19
19|7,935,929
568,472
17,112,567|4,400,000
1,523,023
17,231,576|7,935,929
568,471
17,112,567|4,400,000
1,523,022
17,231,576|
|||25,616,968|23,154,599|25,616,967|23,154,598|
|||||||
||19|25,691,994|23,154,599|25,691,993|23,154,598|
Approved by the Board of Directors and signed and authorised for issue on their behalf by:
John Pickering Chair 29th July 2021 East Anglia’s Children’s Hospices Charity Number: 1069284, Company Number 03550187 Registered in England & Wales in the United Kingdom The notes to the accounts are shown on pages **25 - 43**
**Pg 23 • EACH Report and Accounts 2020-21 • www.each.org.uk**
## **Consolidated Cash Flow statement for the year ended 31st March 2021**
||Notes|Group|Group|Charity|Charity|
|---|---|---|---|---|---|
|||2021
£|2020
£|2021
£|2020
£|
|**Cash fows from operating activities:**
23
1,892,893
546,388
1,888,902
574,553
**Cash fows from investing activities:**
Dividends, interest and rents from investments
98,760
124,313
98,760
124,313
Proceeds from sale of property, plant and equipment
154,038
66,056
154,038
66,056
Purchase of property, plant and equipment
9
(735,790) (2,688,812)
(735,790)
(2,688,812)
Proceeds from sale of investments
808,999
560,494
808,999
560,494
Purchase of investments
10 (1,139,214)
(424,248)
(1,139,214)
(424,248)
**Net cash used investing activities**
(813,207) (2,362,197)
(813,207)
(2,362,197)
**Change in cash and cash equivalents**
**in the reporting period**
1,079,686 (1,815,809)
1,075,695
(1,787,644)
Cash and cash equivalents at the beginning
of the reporting period
24/25
1,617,293
3,433,102
1,610,980
3,398,624
**Cash and cash equivalents at the end**
**of the reporting period**
24/25
2,696,979
1,617,293
2,686,675
1,610,980|23|
1,892,893|
546,388|1,888,902|574,553|
||9
10|98,760
154,038
(735,790)
808,999
(1,139,214)|124,313
66,056
(2,688,812)
560,494
(424,248)|98,760
154,038
(735,790)
808,999
(1,139,214)|124,313
66,056
(2,688,812)
560,494
(424,248)|
|||(813,207)|(2,362,197)|(813,207)|(2,362,197)|
|||1,079,686|(1,815,809)|1,075,695|(1,787,644)|
||24/25|1,617,293|3,433,102|1,610,980|3,398,624|
||24/25|
2,696,979|1,617,293|2,686,675|1,610,980|
The notes to the accounts are shown on pages **25 - 43**
**Pg 24 • EACH Report and Accounts 2020-21 • www.each.org.uk**
**Notes to the Financial Statements for the year ended 31st March 2021**
## **1. Income**
|**Income from Charitable Activities**|2021
£|2020
£||
|---|---|---|---|
|||||
|Community and hospice-based service delivered from EACH Milton
1,463,608
736,500
Community and hospice-based service delivered from EACH The Nook
1,878,267
1,108,604
Community and hospice-based service delivered from EACH The Treehouse
1,256,899
525,556
4,598,774
2,370,660|1,463,608
1,878,267
1,256,899|736,500
1,108,604
525,556||
||4,598,774|2,370,660||
|**Statutory Funds Received for Charitable Activities**|2021
|2020
£||
||£|||
|NHS England Children’s Paliative Care Grant
967,798
837,871
NHSE Covid Funding
1,977,063
-
Block funding from Clinical Commissioning Groups and County Councils
1,319,703
1,157,978
Continuing Care Funding
334,210
374,811
4,598,774
2,370,660
All income from charitable activities in both the current and previous year
relate to statutory income for provision of services as detailed above.|967,798
1,977,063
1,319,703
334,210|837,871
-
1,157,978
374,811||
||4,598,774|2,370,660||
|During the year the charity received a children’s palliative care grant directly from NHS England. The total awarded amounted to
£967,798 (2020 £837,871). The full amont of the grant was spent during the year.
NHS England also awarded funding to allow the hospice to make bed capacity and community support available from April 2020 to
July 2020, to provide support for 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. This amounted to £1,977,063 (2020: £0 )||||
|||||
|**Income from retail and other trading activities**|2021
£|2020
£||
|Charity Shop Sales
Other Income (includes grants received from the Coronavirus Job Support Scheme)|2,066,195
101,974|4,764,613
132,264||
||2,168,169|4,896,877||
During the year the charity received a children’s palliative care grant directly from NHS England. The total awarded amounted to £967,798 (2020 £837,871). The full amont of the grant was spent during the year.
NHS England also awarded funding to allow the hospice to make bed capacity and community support available from April 2020 to July 2020, to provide support for 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. This amounted to £1,977,063 (2020: £0 )
||||||||
|---|---|---|---|---|---|---|
|**Income from retail and other trading activities**|||2021||2020||
||||£||£||
||||||||
|Charity Shop Sales|||2,066,195||4,764,613||
|Other Income (includes grants received from the Coronavirus Job Support Scheme)|||101,974
2,168,169|
|132,264
4,896,877||
## **2. Analysis of expenditure**
||2021|2021|2021|2020|2020|2020|
|---|---|---|---|---|---|---|
||Direct costs
£|Support costs
£|Total costs
£|Direct costs
£|Support costs
£|Total costs
£|
||||||||
|**Raising funds**
Fundraising and publicity
Retail and trading
Investment management
**Charitable activities**|1,058,215
3,561,386
20,275|165,922
452,041
-|1,224,137
4,013,427
20,275|1,555,290
3,799,602
19,641|182,820
464,367
-|1,738,110
4,263,969
19,641|
||4,639,876|617,963|5,257,839|5,374,533|647,187|6,021,720|
|**Community and hospice-b**|**ased servic**|**e delivered f**|**rom:**||||
|EACH Milton
EACH The Nook
EACH The Treehouse
**Total**|1,918,081
2,573,479
2,049,370|
213,013
299,087
229,176|2,131,094
2,872,566
2,278,546|2,296,744
2,164,215
2,189,476|297,162
182,238
279,637|2,593,906
2,346,453
2,469,113|
||6,540,930|741,276|7,282,206|6,650,435|759,037|7,409,472|
||11,180,806|
1,359,239|12,540,045|12,024,968|1,406,224|13,431,192|
**Pg 25 • EACH Report and Accounts 2020-21 • www.each.org.uk**
## **3. Analysis of support costs**
||Support costs 2021|Management
& Admin
£|
Human
Resources
£|IT Systems
£|Finance
£|Governance
£|Total
£||
|---|---|---|---|---|---|---|---|---|
||Cost of generating
voluntary income
90,644
7,256
64,518
1,811
1,693
165,922
Trading: costs of goods
sold and other costs
290,791
19,699
116,696
19,838
5,017
452,041
381,435
26,955
181,214
21,649
6,710
617,963
Milton service
135,003
10,489
62,478
2,384
2,659
213,013
The Nook service
194,816
15,204
76,715
8,505
3,847
299,087
The Treehouse service
156,051
12,045
55,244
2,759
3,077
229,176
Charitable activities
485,870
37,738
194,437
13,648
9,583
741,276
**Total support costs**
867,305
64,693
375,651
35,297
16,293
1,359,239
Support costs are apportioned on the basis of staff costs.
Governance costs comprise of audit fees and accountancy fees £16,293 (2020: £17,456)|90,644
290,791|7,256
19,699|64,518
116,696|1,811
19,838|1,693
5,017|165,922
452,041||
|||381,435|26,955|181,214|21,649|6,710|617,963||
|||135,003
194,816
156,051|10,489
15,204
12,045|62,478
76,715
55,244|2,384
8,505
2,759|2,659
3,847
3,077|213,013
299,087
229,176||
|||485,870|37,738|194,437|13,648|9,583|741,276||
|||867,305|64,693|375,651|35,297|16,293|1,359,239||
||Support costs 2020|Management
& Admin
£|
Human
Resources
£|IT Systems
£|Finance
£|Governance
£|Total
£||
||Cost of generating
voluntary income
104,653
11,772
60,561
3,779
2,055
182,820
Trading: costs of goods
sold and other costs
281,379
29,681
102,276
35,532
5,499
454,367
386,032
41,453
162,837
39,311
7,554
637,187
Milton service
198,014
20,164
68,012
7,108
3,864
297,162
The Nook service
117,563
14,405
40,469
7,517
2,284
182,238
The Treehouse service
192,463
21,428
55,085
6,907
3,754
279,637
Charitable activities
508,040
55,997
163,566
21,532
9,902
759,037
**Total support costs**
894,072
97,450
326,403
60,843
17,456
1,396,224|104,653
281,379|11,772
29,681|60,561
102,276|3,779
35,532|2,055
5,499|182,820
454,367||
|||386,032|41,453|162,837|39,311|7,554|637,187||
|||198,014
117,563
192,463|20,164
14,405
21,428|68,012
40,469
55,085|7,108
7,517
6,907|3,864
2,284
3,754|297,162
182,238
279,637||
|||508,040|55,997|163,566|21,532|9,902|759,037||
|||894,072|97,450|326,403|60,843|17,456|1,396,224||
**Pg 26 • EACH Report and Accounts 2020-21 • www.each.org.uk**
## **4. Analysis of staff costs**
|Staff costs|2021
£|2020
£||
|---|---|---|---|
|Wages and salaries
National Insurance
Pension costs
**Total staff costs**|7,483,477
651,368
536,347|7,925,912
693,083
564,684||
||8,671,192|9,183,679||
The charity Trustees were not paid and did not receive any other benefits from employment with the charity or its subsidiaries in the year. Expenses paid to Trustees is detailed in note **22**
During the year a termination payment was made to one member of staff at a cost of £9,684 (2020: seven members of staff at £79,349). This was approved by the Board of Trustees.
## **5. Staff**
|Staff full-time equivalents and headcount|2021|2021|2020|2020||
|---|---|---|---|---|---|
||Headcount|Full-Time
Equivalent|Headcount|Full-Time
Equivalent||
|The average number of staff employed in the
year were:
Direct charitable services
178
Fundraising services
25
Retail
123
Support services
36
**Total staff**
**362**|178
25
123
36|154
24
87
30|169
28
104
36|142
27
79
29||
|||**295**
**337**||**277**||
**Pg 27 • EACH Report and Accounts 2020-21 • www.each.org.uk**
## **6. Key management personnel and higher paid employees**
The key management personnel comprise of the trustees and the management executive who are the; Chief Executive, and the Directors of; Care, Retail, People, Fundraising and Finance.
||Key management personnel|2021
£|2020
£|
|---|---|---|---|
||Employee benefts of key management personnel
Salary
Employers Pension Contribution
Employers National Insurance payments|312,539
16,294
38,698|289,460
25,560
35,183|
The number of employees whose total employee benefits excluding pension contributions earning over £60,000, classified within bands of £10,000 is as follows:
||Higher paid employee salary bands and pension|2021|2020
£|
|---|---|---|---|
|||£||
||£60,000-£69,999
£70,000-£79,999
£80,000-£89,999
£90,000-£99,999
Pension contribution of higher paid employees|1
2
2
-
53,582|-
2
2
1
24,780|
## **7. Pension cost**
The charity operates a ‘group personal pension plan’. The assets of the scheme are held separately from those of the charity in an independently administered fund. In addition, the charity made contribution to the NHS pension scheme in respect of certain employees. Whilst the NHS scheme is a defined benefit scheme, it is a multi-employer scheme for which the charity’s share of the underlying assets and liabilities cannot be identified; it is therefore accounted for as a defined contribution scheme in accordance with FRS102. The charity’s contribution to these schemes are therefore charged to the statement of financial activity when due.
At 31st March 2021 £76,449 (2020: £83,564) in pension contributions was due to be paid to pension providers.
|Pension scheme contributions
2021
2020
£
£
Total pension scheme contributions:
536,347
564,684
Pension contribution included in creditors:
76,449
83,565|Pension scheme contributions|2021
£|2020
£|
|---|---|---|---|
||Total pension scheme contributions:
Pension contribution included in creditors:|536,347
76,449|
564,684
83,565|
**Pg 28 • EACH Report and Accounts 2020-21 • www.each.org.uk**
## **8. Net income**
||**8. Net income**|||
|---|---|---|---|
||Net income|2021
£|2020
£|
||Net income is stated after charging:
Depreciation
Auditors’ remuneration:
- for audit services
- for other services
(Loss) on disposal of fxed assets
Operating lease rentals
Operating leases for property|815,402
16,250
750
(17,946)
26,480
756,455|682,634
15,750
1,706
(6,645)
35,640
931,934|
## **9. Tangible Fixed Assets, Group and Charity**
|Group and charity fxed assets
Leasehold
Freehold
Property held
Equipment
Total
Property
Property
for Investment
& Vehicles
£
£
£
£
£
**Cost**
At start of year
3,398,084
13,947,783
-
3,945,001
21,290,868
Additions
23,415
112,285
375,000
225,090
735,790
Disposals
(21,450)
-
(114,642)
(136,092)
At end of year
3,400,049
14,060,068
375,000
4,055,449
21,890,566
**Depreciation**
At start of year
184,709
1,482,923
-
2,391,661
4,059,293
Charge for the year
77,107
276,056
-
462,239
815,402
Eliminated on disposal
(17,914)
-
-
(78,782)
(96,696)
**At end of year**
243,902
1,758,979
-
2,775,118
4,777,999
**Net book value at the end**
**of the year**
3,156,147
12,301,089
375,000
1,280,331
17,112,567
Net book value at the start of the year
3,213,375 12,464,860
-
1,553,340 17,231,575|Group and charity fxed assets|Leasehold
Property
£|Freehold
Property
£|Property held
for Investment
£|Equipment
& Vehicles
£|Total
£|
|---|---|---|---|---|---|---|
||**Cost**
At start of year
3,398,084
13,947,783
-
3,945,001
21,290,868
Additions
23,415
112,285
375,000
225,090
735,790
Disposals
(21,450)
-
(114,642)
(136,092)
At end of year
3,400,049
14,060,068
375,000
4,055,449
21,890,566
**Depreciation**
At start of year
184,709
1,482,923
-
2,391,661
4,059,293
Charge for the year
77,107
276,056
-
462,239
815,402
Eliminated on disposal
(17,914)
-
-
(78,782)
(96,696)
**At end of year**
243,902
1,758,979
-
2,775,118
4,777,999
**Net book value at the end**
**of the year**
3,156,147
12,301,089
375,000
1,280,331
17,112,567
Net book value at the start of the year
3,213,375 12,464,860
-
1,553,340 17,231,575|3,398,084|13,947,783|-|3,945,001|21,290,868|
|||23,415
(21,450)|112,285
-|375,000|225,090
(114,642)|735,790
(136,092)|
|||3,400,049|14,060,068|375,000|4,055,449|21,890,566|
|||184,709|1,482,923|-|2,391,661|4,059,293|
|||77,107
(17,914)|276,056
-|-
-|462,239
(78,782)|815,402
(96,696)|
|||243,902|1,758,979|-|2,775,118|4,777,999|
||||||||
|||3,156,147|12,301,089|375,000|1,280,331|17,112,567|
|||3,213,375|12,464,860|
-|1,553,340|17,231,575|
## Property held for investment includes:
- A bungalow in Needham Market donated as a gift in kind valued by Hamilton Smith at £375,000 confirmed by S119 report by M J Sargeantson of Fenn Wright.
**Pg 29 • EACH Report and Accounts 2020-21 • www.each.org.uk**
## **10. Investments, Group and Charity**
|Investment movements|2021
Market Value
£|2020
Market Value
£||
|---|---|---|---|
|Market value at beginning of year
Additions at cost
Disposals at opening book value
Unrealised gains/(losses) on revaluation
Market value at end of year
Cash held on investments portfolio
Total portfolio market value including cash|3,193,395
1,139,214
(752,103)
685,273|3,629,631
424,247
(539,831)
(320,652)||
||4,265,779
55,870|3,193,395
311,633||
||4,321,649|
3,505,028||
|Investment categories|2021|2021|2020|2020|
|---|---|---|---|---|
||Cost
£|Market Value
£|Cost
£|Market Value
£|
|Equity Funds and Overseas Equities
UK Equities
Alternatives
Fixed Income
Cash held on investments portfolio|949,538
885,241
751,874
575,984
55,870|1,677,946
1,156,151
850,210
581,472
55,870|613,723
939,050
706,831
570,093
311,633|889,423
1,019,997
762,796
521,179
311,633|
||3,218,507|4,321,649|
3,141,330|
3,505,028|
**Pg 30 • EACH Report and Accounts 2020-21 • www.each.org.uk**
## **11. Financial Performance of the Charity**
The consolidated statement of financial activities includes the results of the charity’s wholly-owned trading subsidiaries EACH (Trading) Limited and Stable Trading Ltd. The summary performance of the charity alone is as follows:
|East Anglia’s Children’s Hospices
Charity No. 1069284, Company No. 03550187 Registered in UK|2021
£|2020
£|
|---|---|---|
|Income
Gift Aid from trading subsidiary
Total expenditure
Investment gain/(loss)
Net income
Total funds brought forward
Total funds carried forward
**Represented by:**
Restricted funds
Unrestricted funds:
Designated funds
General funds
Capital reserve|14,268,567
66,704
(12,540,044)
742,168|15,197,949
70,845
(13,432,690)
(299,989)|
||2,537,395
23,154,598|1,536,115
21,618,483|
||25,691,983|23,154,598|
||75,026
7,935,929
568,471
17,112,567|-
4,400,000
1,523,022
17,231,576|
||25,691,993|
23,154,598|
**Pg 31 • EACH Report and Accounts 2020-21 • www.each.org.uk**
## **12. Financial Performance of the Trading Subsidiary**
East Anglia’s Children’s Hospices (Trading) Ltd is wholly-owned by East Anglia’s Children’s Hospices. The subsidiary’s main purpose is to sell goods to raise funds for the charity. Profits are gift aided to the charity under a deed of covenant. The charity holds 1 share of £1 in its wholly-owned trading subsidiary company East Anglia’s Children’s Hospices (Trading) Ltd which is incorporated in the United Kingdom. These are the only shares allotted, called up and fully paid. The activities and results of this company are summarised as follows:
|East Anglia’s Children’s Hospices (Trading) Ltd
Company No. 09155768, Registered in UK|2021
£|2020
£||
|---|---|---|---|
|Turnover
101,409
105,069
Cost of sales
(34,535)
(34,054)
Gross proft
66,874
71,015
Operating expenses
(170)
(170)
Proft on ordinary activities
66,704
70,845
Gift Aid donated to the charity
(66,704)
(70,845)
Proft for the fnancial year being the retained proft for the year
-
-
**Balance Sheet**
Assets
43,616
34,846
Liabilities
(43,615)
(34,845)
Net Assets
1
1
Represented by:
Reserves
1
1
1
1|101,409
(34,535)|105,069
(34,054)||
||66,874
(170)|71,015
(170)||
||66,704
(66,704)|70,845
(70,845)||
||-|-||
||43,616
(43,615)|34,846
(34,845)||
||1|1||
||1|1||
**Pg 32 • EACH Report and Accounts 2020-21 • www.each.org.uk**
## **13. Trading Subsidiary - Stable Trading Limited**
## (company no 02593818 UK registered)
Stable Trading Limited is a company limited by guarantee which is under the control of the directors of East Anglia’s Children’s Hospices. The subsidiary’s main purpose was to sell goods to raise funds for the charity. In 2014 the subsidiary’s activities were transferred to the charity. There are no results or activities to report for this company. The company is dormant.
## **14. Subsidiary - Children’s Hospice for the Eastern Region (CHER)**
(company no 02776381, UK registered)
The Children’s Hospice for the Eastern Region is a dormant company wholly-owned by East Anglia’s Children’s Hospices. There are no results or activities to report for this company. The company is dormant.
## **15. Debtors and contingent assets**
|Debtors|Group|Group|Charity|Charity|
|---|---|---|---|---|
||2021
£|2020
£|2021
£|2020
£|
|Trade debtors
462,835
123,680
450,232
103,772
Amount owed by group companies
-
-
31,120
17,130
Taxation recoverable
198,095
228,993
198,095
228,993
Prepayments
403,957
425,378
403,957
425,378
Accrued income
1,832,214
1,854,112
1,832,214
1,854,112
Other debtors
93,639
22,896
93,639
22,896
2,990,740
2,655,059
3,009,257
2,652,281|462,835
-
198,095
403,957
1,832,214
93,639|123,680
-
228,993
425,378
1,854,112
22,896|450,232
31,120
198,095
403,957
1,832,214
93,639|103,772
17,130
228,993
425,378
1,854,112
22,896|
||2,990,740|2,655,059|3,009,257|2,652,281|
Accrued income includes the value of land bequeathed to EACH in Needham Market which has been valued by M J Sargeantson of Fenn Wright at £278,500
|Contingent Assets|2021
£|2020
£|
|---|---|---|
|Legacies, estimate of value of legacies being held by executors
Insurance claim in negotiation|1,457,773
300,000|
1,293,546
-|
Notified legacies are recognised as accrued income when their value is known with a degree of certainty. Where legacies have been notified but their value remains uncertain they are treated as contingent assets. At the balance sheet date contingent legacy assets are estimated to be as below.
An insurance claim was made during the year under Business Interruption Cover relating to the Pandemic lockdown. An interim payment was received for £250k which was recognised in the year. Negotiations are still in progress with insurers regarding a further £300k claimed but not paid.
**Pg 33 • EACH Report and Accounts 2020-21 • www.each.org.uk**
## **16. Creditors: amounts falling due within one year**
||Group|Group|Charity|Charity|
|---|---|---|---|---|
||2021
£|2020
£|2021
£|2020
£|
|Trade creditors
157,599
505,607
159,399
507,187
Taxation and social security
164,871
171,308
164,871
171,308
Other creditors
153,490
98,767
150,996
96,273
Accruals
584,704
447,593
584,704
447,593
Deferred income
239,415
132,666
229,414
117,665
Provisions
92,901
193,608
92,901
193,608
1,392,980
1,549,549
1,382,285
1,533,634|157,599
164,871
153,490
584,704
239,415
92,901|505,607
171,308
98,767
447,593
132,666
193,608|159,399
164,871
150,996
584,704
229,414
92,901|507,187
171,308
96,273
447,593
117,665
193,608|
||1,392,980|1,549,549|1,382,285|1,533,634|
## **17. Financial commitments under non-cancellable operating leases**
||2021|2021|2020|2020||
|---|---|---|---|---|---|
||Land &
Buildings
£|Other
£|Land &
Buildings
£|Other
£||
|Leases expiring:
Within 1 year
In 2-5 years
Over 5 years|739,691
1,015,075
-|26,043
84,853
24,388|775,416
1,498,887
-|33,346
100,560
43,684||
||1,754,766
135,284||2,274,303
177,590|||
## **18. Capital commitments**
|||2020
£|
|---|---|---|
||2021
£||
|At 31st March 2021 the charity had no capital commitments
(2020: there was £139,011 of capital commitments contracted
for but not provided for in these fnancial statements).|-|
139,011|
||-|139,011|
**Pg 34 • EACH Report and Accounts 2020-21 • www.each.org.uk**
## **19. Statement of Funds**
|Statement of funds 2021|Balance at
31/3/2020
£|Income
|Expenditure
& Gains
|Transfers
|Balance at
31/3/2021
||
|---|---|---|---|---|---|---|
|||£|£|£|£||
|**General funds**
Designated funds - revenue
Covid recovery fund
Reserves policy
Capital expenditure
**Designated funds - capital**
Land and buildings
Other fxed assets
Total Designated Funds
**Restricted funds**
Art and Play
Care
Complementary therapy
Computer equipment
Fundraising
Milton hub equipment
Milton service
Music therapy
NHSE Covid funding via HUK
The Nook build
The Nook grounds
The Nook service
Nursing kits
Protective equipment
Sound cradle
Staff fund
Syringe drivers
The Treehouse service
Total funds|1,523,023
-
4,000,000
400,000|11,843,073
-
-
-|(8,611,998)
-
-
-|(4,185,626)
2,500,000
835,929
200,000|568,472
2,500,000
4,835,929
600,000||
||4,400,000
15,678,235
1,553,341|-
-
-|-
(335,249)
(383,457)|3,535,929
489,250
110,447|7,935,929
15,832,236
1,280,331||
||17,231,576
21,631,576
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-|-
-
1,470
98,563
377
6,500
510
8,442
74,807
5,600
1,977,063
1,000
2,000
136,145
3,257
5,062
2,100
100
10,800
158,403|(718,706)
(718,706)
(1,470)
(98,563)
-
(6,500)
(510)
-
(74,732)
(5,600)
(1,977,063)
(1,000)
-
(136,120)
-
(5,062)
(2,100)
(50)
-
(158,403)|599,697
4,135,626
-
-
-
-
-
-
-
-
-
-
50,000
-
-
-
-
-
-
-|17,112,567
25,048,496
-
-
377
-
-
8,442
75
-
-
-
52,000
25
3,257
-
-
50
10,800
-||
||-|
2,492,199|(2,467,173)|50,000|75,026||
||23,154,599|14,335,272|(11,797,877)|-|25,691,994||
## **Restricted Funds**
Revenue restricted funds are allocated against expenditure as it is incurred.
## **Designated Funds**
Designated funds comprise of capital and other designated funds, the capital fund is a designated fund set aside by directors and represents the net book value of fixed assets. EACH Trustees consider it to be prudent to set aside designated funds to cover all fixed assets.
## **General Funds**
The general fund includes £1 (2020 £1) retained in the reserves of the subsidiary company.
**Pg 35 • EACH Report and Accounts 2020-21 • www.each.org.uk**
## **20. Statement of Funds Prior Year**
|Statement of funds 2020|Balance at
31/3/2019
£|Income
£|Expenditure
& Gains
£|Transfers
£|Balance at
31/3/2020
£||
|---|---|---|---|---|---|---|
|**General funds**
**Designated funds general**
Development fund
Reserves policy
Planned capital expenditure
Building maintenance
The Nook fund designated
**Designated funds - capital**
Land and buildings
Other fxed assets
**Restricted funds**
The Nook
Fundraising costs
Norfolk care
Colchester care
Cambridgeshire care
Treefest
Wheelchair vehicle
Hospice care
Nurse equipment
Research
Milton hospice
Pantomime
Suffolk care
Art therapy
Counselling
Music therapy
Help at home
**Total funds**|9,055
1,400,000
3,580,000
540,180
-
843,734|13,071,262
-
-
-
-
-|(12,959,260)
-
-
-
-
-|1,401,966
(1,400,000)
420,000
(140,180)
-
(843,734)|1,523,023
-
4,000,000
400,000
-
-||
||6,363,914
14,231,298
1,000,745|-
-
-|-
-
-|(1,963,914)
1,446,937
552,596|4,400,000
15,678,235
1,553,341||
||15,232,043
13,472
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-|-
1,558,572
30,055
335,210
6,500
33,541
700
12,000
3,500
1,000
-
28,000
1,900
165,082
7,385
170
9,419
3,000|-
(146,459)
(30,055)
(335,210)
(6,500)
(33,541)
(700)
-
(3,500)
(1,000)
-
(28,000)
(1,900)
(165,082)
(7,385)
(170)
(9,419)
(3,000)|1,999,533
(1,425,585)
-
-
-
-
-
(12,000)
-
-
-
-
-
-
-
-
-
-|17,231,576
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-||
||13,472
21,618,484|2,196,034
15,267,296|(771,921)
(13,731,181)|(1,437,585)
-|-
23,154,599||
**Pg 36 • EACH Report and Accounts 2020-21 • www.each.org.uk**
## **21. Net Assets by Funds**
|Net Assets 2021
|General funds
£|Designated
funds
£|Capital
Reserve
£|Restricted
funds
£|Total funds
£|
|---|---|---|---|---|---|
|Tangible fxed assets
Investments
Current assets
Creditors falling due in less than one year|-
-
1,961,452
(1,392,980)|-
4,321,649
3,614,280
-|17,112,567
-
-
-|-
-
75,026
-|17,112,567
4,321,649
5,650,758
(1,392,980)|
||568,472|7,935,929|17,112,567|75,026|25,691,994|
|||||||
|Net Assets 2020
|General funds
£|Designated
funds
£|Capital
Reserve
£|Restricted
funds
£|Total funds
£|
|Tangible fxed assets
-
- 17,231,576
-
17,231,576
Investments
-
3,505,028
-
-
3,505,028
Current assets
3,072,572
894,972
-
-
3,967,544
Creditors falling due in less than one year
(1,549,549)
-
-
- (1,549,549)
1,523,023 4,400,000 17,231,576
- 23,154,599|-
-
3,072,572
(1,549,549)|-
3,505,028
894,972
-|17,231,576
-
-
-|-
-
-
-|17,231,576
3,505,028
3,967,544
(1,549,549)|
||1,523,023|4,400,000|17,231,576|
-|23,154,599|
|||||||
## **22. Related party transactions**
||||
|---|---|---|
||2021
£|2020
£|
|Balance due at 31st March from EACH (Trading) Ltd to EACH
Donations made by Directors and Key Staff
Travel expenses waived by Directors and Key Staff|31,120
6,125
735|17,130
49,964
2,656|
East Anglia’s Children’s Hospices has three wholly-owned subsidiaries; Stable Trading Ltd, East Anglia’s Children’s Hospices (Trading) Limited (EACH (Trading) Ltd), and The Children’s Hospice for the Eastern Region (CHER). CHER and Stable Trading Ltd are dormant companies with no assets or liabilities. EACH (Trading) Gift Aids its profits to EACH under a deed of covenant arrangement.
East Anglia’s Children’s Hospices is controlled by its directors.
**Pg 37 • EACH Report and Accounts 2020-21 • www.each.org.uk**
## **23. Reconciliation of net income/expenditure to net cashflow from operating activities**
|||Group|Group|Charity|Charity||
|---|---|---|---|---|---|---|
|||2021|2020
£|2021|2020
£||
|||£||£|||
||**Net income for the reporting period (as**
**per the Statement of Financial Activities)**
2,537,395
1,536,115
2,537,395
1,536,115
Depreciation charges
815,402
682,634
815,402
682,634
(Losses)/gains on investments
(742,168)
299,989
(742,168)
299,989
Dividends, interest and rents from investments
(98,760)
(124,313)
(98,760)
(124,313)
(Proft) on the sale of fxed assets
(114,642)
(59,410)
(114,642)
(59,410)
(Increase)/decrease in stocks
(12,084)
5,530
-
-
Decrease/(increase) in debtors
(335,681)
(1,009,761)
(356,976)
(982,787)
(Decrease) in creditors
(156,569)
(784,396)
(151,349)
(777,675)
**Net cash provided by**
**operating activities**
1,892,893
546,388
1,888,902
574,553|2,537,395
815,402
(742,168)
(98,760)
(114,642)
(12,084)
(335,681)
(156,569)|
1,536,115
682,634
299,989
(124,313)
(59,410)
5,530
(1,009,761)
(784,396)|2,537,395
815,402
(742,168)
(98,760)
(114,642)
-
(356,976)
(151,349)|1,536,115
682,634
299,989
(124,313)
(59,410)
-
(982,787)
(777,675)||
|||1,892,893|546,388|1,888,902|574,553||
## **24. Analysis of cash and cash equivalents**
||Group|Group|Charity|Charity|
|---|---|---|---|---|
||2021|2020|2021|2020
£|
||£|£|£||
|Cash in hand
Cash held as part of the investment portfolio
**Total cash and cash equivalents**|2,641,109
55,870|1,305,660
311,633|2,630,805
55,870|1,299,347
311,633|
||2,696,979|
1,617,293|2,686,675|1,610,980|
## **25. Net debt reconciliation**
||At 1/4/2020
£|Cash
movement
£|At 31/3/2021
£|
|---|---|---|---|
|**Group**
Cash at bank and in hand
1,305,660
1,335,450
2,641,109
Cash held as part of investment portfolio
311,633
(255,763)
55,870
1,617,293
1,079,687
2,696,979
**Charity**
Cash at bank and in hand
1,299,347
1,331,458
2,630,805
Cash held as part of investment portfolio
311,633
(255,763)
55,870
1,610,980
1,075,695
2,686,675|1,305,660
311,633|1,335,450
(255,763)|2,641,109
55,870|
||1,617,293|1,079,687|2,696,979|
||1,299,347
311,633|1,331,458
(255,763)|2,630,805
55,870|
||1,610,980|1,075,695|2,686,675|
**Pg 38 • EACH Report and Accounts 2020-21 • www.each.org.uk**
## **26. Prior Year Consolidated Statement of Financial Activities**
|Statement of Financial Activities
(incorporating an income and expenditure account)
for the fnancial year to 31st March 2020|General
£|Designated
£|Restricted
£|2020
Total Funds
£||
|---|---|---|---|---|---|
|**Income:**
**Donations and legacies**
Donations
1,994,992
-
2,196,034
4,191,026
Trust income
1,235,301
-
-
1,235,301
Legacies
1,690,689
-
-
1,690,689
4,920,982
-
2,196,034
7,117,016
Income from charitable activities
2,370,660
-
-
2,370,660
Income from retail and other trading activities
4,896,877
-
-
4,896,877
Investment income
129,120
-
-
129,120
Other income
753,623
-
-
753,623
**Total Income**
13,071,262
-
2,196,034
15,267,296
**Expenditure:**
Cost of raising voluntary income
Fundraising
1,708,055
-
30,055
1,738,110
Costs of goods sold and retail costs
4,263,969
-
-
4,263,969
Investment management costs
(722,225)
-
741,866
19,641
5,249,799
-
771,921
6,021,720
**Expenditure on charitable activities**
7,409,472
-
-
7,409,472
**Total expenditure**
12,659,271
-
771,921
13,431,192
**Net income from operational**
**activities for the year**
411,991
-
1,424,113
1,836,104
Net gains/(losses) on investments
(299,989)
-
-
(299,989)
**Net income for the year**
112,002
-
1,424,113
1,536,115
Transfers between funds
1,401,966
35,619
(1,437,585)
-
**Net movement in funds**
1,513,968
35,619
(13,472)
1,536,115
**Reconciliation of funds:**
-
Total funds brought forward
9,055 21,595,957
13,472
21,618,484
**Total funds carried forward**
1,523,023
21,631,576
- 23,154,599|1,994,992
1,235,301
1,690,689|-
-
-|2,196,034
-
-|4,191,026
1,235,301
1,690,689||
||4,920,982|-|2,196,034|7,117,016||
||2,370,660
4,896,877
129,120
753,623|-
-
-
-|-
-
-
-|
2,370,660
4,896,877
129,120
753,623||
||13,071,262|-|2,196,034|15,267,296||
||1,708,055
4,263,969
(722,225)|-
-
-|
30,055
-
741,866|1,738,110
4,263,969
19,641||
||5,249,799|-|
771,921|6,021,720||
||7,409,472|-|
-|7,409,472||
||12,659,271|-|
771,921|13,431,192||
||411,991
(299,989)|-
-|
1,424,113
-|1,836,104
(299,989)||
||112,002
1,401,966
1,513,968|-
35,619
35,619|1,424,113
(1,437,585)
(13,472)|1,536,115
-
1,536,115||
||9,055|21,595,957|13,472|-
21,618,484||
||1,523,023|21,631,576|-|23,154,599||
**Pg 39 • EACH Report and Accounts 2020-21 • www.each.org.uk**
## **Accounting Policies**
The principal accounting policies, adopted judgements, and key sources of estimation uncertainty in the preparation of the financial statements are as follows:
## _a. Basis of preparation_
The financial statements have been prepared in accordance with 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) (effective 1 January 2019) – (Charities SORP (FRS 102)) and the Companies Act 2006.
East Anglia’s Children’s Hospices meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s).
_b. Significant accounting estimates and assumptions_ The most significant areas of adjustment and key assumptions that affect items in the accounts are to do with judging when legacy income should be brought into the figures. Further details regarding the contingent asset for legacy is shown in note 16.
- _c. Legal status of the charity and subsidiaries_
The charity is a company limited by guarantee and has no share capital. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity. East Anglia’s Children’s Hospices (Trading) Limited is a trading company and wholly-owned by the charity. Stable Trading Limited is a company limited by guarantee under the control of the Trustees and also East Anglia’s Children’s Hospices.
## _d. Going concern_
The Trustees consider that there are no material uncertainties about EACH’s ability to continue as a going concern.
- _e. Group financial statements_
The financial statements consolidate the results of the charity and its wholly-owned subsidiaries on a line-by-line basis. A separate Statement of Financial Activities and Income and Expenditure for the charity has not been presented because the charity has taken advantage of the exemption afforded by section 408 of the Companies Act 2006.
## _f. Fund accounting_
Unrestricted funds are available to spend on activities that further any of the purposes of the charity.
Designated funds are unrestricted funds of the charity which the Trustees have decided at their discretion to set aside to use for a specific purpose. The aim and purpose of each designated fund is set out in the notes to the financial statements. Restricted funds are given to EACH for a variety of specific purposes which mostly relate to the care of children and families or the development of new facilities. The cost of raising and administering such funds is charged against the specific fund. The aim and use of each material designated and restricted fund is set out in the notes to the financial statements. Investment income, gains and losses are allocated to the appropriate fund.
## _g. Income_
Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the item(s) of income have been met, it is probable that the income will be received, and the amount can be measured reliably.
Where income has related expenditure (as with fundraising or contract income), the income and related expenditure are reported gross in the Statement of Financial Activities.
Donations, grants and gifts are recognised when receivable. In the event that a donation is subject to fulfilling performance conditions before the charity is entitled to the funds, the income is deferred and not recognised until those conditions will be fulfilled in the reporting period. Income from Gift Aid tax claims are processed for donations with relevant and appropriate Gift Aid declarations. Claims are made in the same
period as the donation is received. Any amounts of Gift Aid not received by the year end are accounted for in income and accrued income in debtors.
Income from NHS contracts, government and other grants, whether ‘capital’ grants or ‘revenue’ grants, are recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received, and the amount can be measured reliably and is not deferred.
**Pg 40 • EACH Report and Accounts 2020-21 • www.each.org.uk**
For legacies, entitlement is taken on a case-by-case basis, pecuniary bequests are recognised following probate and on receipt of notification. Residuary bequests are recognised at the earlier date of either when the charity is aware the estate has been finalised and notification has been made by the executor(s) to the charity that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably, and the charity has been notified of the executor’s intention to make a distribution. If the legacy is in the form of an asset other than cash or an asset listed on a recognised stock exchange, recognition is subject to the value of the asset being able to be reliably measured and title to the asset has passed to the charity. Where legacies have been notified or the charity is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is treated as a contingent asset and disclosed if material (see note 16).
Income received in advance for a future fundraising event or for a grant received relating to the following year are deferred until the criteria for income recognition are met.
Interest on deposit funds held is included when receivable and the amount can be measured reliably by the charity which is normally upon notification of the interest paid or payable by the bank. Dividends are recognised once the dividend has been declared and notification has been received of the dividend due. This is normally upon notification by our investment advisor of the dividend yield of the investment portfolio. Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.
Sponsorship from events, fundraising and events’ registration fees are recognised in income when the event takes place. Lottery income is accounted for in respect of those draws that have taken place in the year. Trading income is recognised on point of sale for both donated and purchased goods.
## _h. Donated goods and services_
Donated services or facilities are recognised when the charity has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use of the item is probable and that economic benefit can be measured reliably.
Donated professional services and facilities are included in income at the estimated value of the gift to the charity when received, based on the amount that the charity would have been prepared to pay for these services or facilities had it been required to purchase them, with a corresponding entry in the appropriate expenditure heading for the same amount. Donated fixed assets are similarly taken to income at the value to the charity with the other entry being capitalised in fixed assets.
Rent-free periods and landlord contributions to shop set-up costs are spread over the life of the lease.
## _i. Expenditure and irrecoverable VAT_
Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. All expenditure is accounted for on an accruals basis under the following headings:
- Costs of raising funds comprise fundraising costs incurred in seeking donations, grants and legacies; investment management fees; costs of fundraising activities including the costs of goods sold, shop costs, commercial trading and their associated support costs. Fundraising costs do not include the costs of disseminating information of support of the charitable activities.
- Expenditure on charitable activities includes the costs of providing specialist palliative care and support, community services, research and other educational activities undertaken to further the purposes of the charity and their associated support costs.
- Support costs comprise those costs which are incurred directly in support of expenditure on the objects of the charity and include governance cost, finance, and office costs. Governance costs are those costs incurred in connection with the compliance with constitutional and statutory requirements of the charity. Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred. Support costs are allocated to each of the activities on the basis of staffing costs.
## _j. Volunteers_
The value of the services provided by volunteers is not incorporated into these financial statements. Further details of their contribution are provided in the Strategic report.
**Pg 41 • EACH Report and Accounts 2020-21 • www.each.org.uk**
## _k. Fixed assets_
All assets costing more than £1,000 are capitalised at their historical cost when purchased. Depreciation is provided to write off the cost or revaluated amount, less an estimated residual value, of all fixed assets evenly over their expected economic useful lives on a straight-line basis as follows:
- Motor vehicles 20% of cost • Fixtures and equipment 20% - 33% of cost • Freehold buildings 2% of cost
- Improvements to the leasehold property over lease period
The need for any impairment of a fixed asset writedown is considered if there is concern over the carrying value of an asset and is assessed by comparing that carrying value against the value in use or realisable value of the asset when appropriate.
## _l. Investments_
Investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing quoted market price, except for the shares in the trading subsidiary which are carried at cost. The statement of financial activities includes the net gains and losses arising on revaluation and disposals throughout the year. The charity does not acquire put options, derivatives or other complex financial instruments.
All gains and losses are taken to the Statement of Financial Activities as they arise. Realised gains and losses on investments are calculated as the difference between sales proceeds and their opening carrying value or their purchase value if acquired subsequent to the first day of the financial year. Unrealised gains and losses are calculated as the difference between the fair value at the year end and their carrying value. Realised and unrealised investment gains and losses are combined in the Statement of Financial Activities.
The main form of financial risk faced by the charity is that of volatility in equity markets and investment markets due to wider economic conditions, the attitude of investors to investment risk, and changes in sentiment concerning equities and within particular sectors or sub sectors.
## _m. Stock_
Stock of retail goods is included at the lower of cost or net realisable value. Donated items of stock for resale or distribution are not included in the financial statements until they are sold or distributed because the Trustees consider it impractical to be able to assess the amount of donated stocks as there are no systems in place which record these items until they are sold and undertaking a stock take would incur undue cost for the charity which far outweighs the benefits.
- _n. Debtors_
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. Accrued income and tax recoverable are included at the best estimate of the amounts receivable at the balance sheet date.
- _o. Cash at bank and in hand_
- Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
- _p. Creditors_ Creditors 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 are normally recognised at their settlement amount after allowing for any trade discounts due.
- _q. Financial instruments_
The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.
Fixed assets are recorded at depreciated historical cost and investments are recorded at fair value being closing bid value. All other assets and liabilities are recorded at cost which is their fair value.
**Pg 42 • EACH Report and Accounts 2020-21 • www.each.org.uk**
## _r. Pensions_
Employees of the charity are entitled to join a defined contribution ‘money purchase’ scheme OR NHS scheme. Charity contributions are disclosed in note 5. There were no overdue contributions at the yearend. The costs of the defined contribution scheme are included with the associated staff costs and allocated therefore to raising funds, charitable activities, support and governance costs and charged to the unrestricted funds of the charity.
The money purchase plan is managed by Aviva and the plan invests the contributions made by the employee and employer in an investment fund to build up over the term of the plan. The pension fund is then converted into a pension upon the employee’s normal retirement age which is defined as when they are eligible for a state pension. Aviva charges employees directly for the management of the scheme at 0.55% and this is deducted from the investment fund annually. The charity has no liability beyond making its contributions and paying across the deductions for the employee’s contributions.
## _u. Foreign currencies_
Monetary assets and liabilities denominated in foreign currencies are translated into sterling at rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate ruling on the date of the transaction. Exchange gains and losses are recognised in the Statement of Financial Activities.
## _v. Significant Accounting Estimates_
A dilapidation provision is made for leased property where there is a reinstatement on termination requirement in the lease.
## _s. Operating leases_
Operating leases are recognised over the period of which the lease falls due. Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the period of the lease.
## _t. Taxation_
The company is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the company is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 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.
**Pg 43 • EACH Report and Accounts 2020-21 • www.each.org.uk**
## **Independent Auditor’s Report to the Members of East Anglia’s Children’s Hospices**
## **Opinion**
We have audited the financial statements of East Anglia’s Children’s Hospices (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 charity Balance Sheet, the consolidated Cash Flow Statement and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
- give a true and fair view of the state of the group’s and parent charitable company’s affairs as at 31 March 2021, and of the group’s incoming resources and application of resources, including its income and expenditure, for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Companies Act 2006.
## **Basis for opinion**
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained
is sufficient and appropriate to provide a basis for our opinion.
## **Conclusions relating to going concern**
In auditing the financial statements, we have concluded that the Trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group’s or 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 other information comprises the information included in the Trustees annual report, other than the financial statements and our auditor’s report thereon. The Trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
**Pg 44 • EACH Report and Accounts 2020-21 • www.each.org.uk**
## **Opinions on other matters prescribed by the Companies Act 2006**
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Trustees’ report (incorporating the strategic report and the directors’ report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the strategic report and the directors’ report have been prepared in accordance with applicable legal requirements.
## **Matters on which we are required to report by exception**
In the light of the knowledge and understanding of the group and parent charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report and the directors’ report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate and sufficient accounting records have not been kept by the parent charitable company, or returns adequate for our audit have not been received from branches not visited by us; or
- the parent charitable company’s financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors’ remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.
## **Responsibilities of Trustees**
As explained more fully in the Trustees’ responsibilities statement (set out on page 21), the trustees (who are also the directors of the parent charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of 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 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 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 auditor under the Companies Act 2006 and report in accordance with this Act.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
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:
**Pg 45 • EACH Report and Accounts 2020-21 • www.each.org.uk**
We gained an understanding of the legal and regulatory framework applicable to the charity and how it operates and considered the risk of the charity not complying with the applicable laws and regulations including fraud in particular those that could have a material impact on the financial statements. This included those regulations directly related to the financial statements. In relation to the charity this included employment law, financial reporting, health & safety and safeguarding.
The risks were discussed with the audit team and we remained alert to any indications of non-compliance throughout the audit. We carried out specific procedures to address the risks identified. These included the following:
- We reviewed systems and procedures to identify potential areas of management override risk. In particular, we carried out testing of journal entries and other adjustments for appropriateness and evaluated the business rationale of significant transactions to identify large or unusual transactions. We reviewed key authorisation procedures and decision-making processes for any unusual or one-off transactions.
- We reviewed minutes of Trustee Board meetings, any correspondence with the Charity Commission and reviewed the procedures in place for the reporting of any incidents to the Trustee Board, including serious incident reporting of these matters as necessary with the Charity Commission.
- We agreed the financial statement disclosures to underlying supporting documentation, made enquiries of management and officers of the charitable company regarding laws and regulations applicable to the organisation and discussed whether there had been any known breaches of laws and regulations in order to consider any possible further considerations or impact upon the charity.
- We reviewed the risk management processes and procedures in place, including a review of the risk register maintained by the charitable company and reports reviewed by the board.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https:// www.frc.org.uk/Our-Work/Audit/Audit-and-assurance/ Standards-and-guidance/Standards-and-guidance-forauditors/Auditors-responsibilities-for-audit/Descriptionof-auditors-responsibilities-for-audit.aspx. 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. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
## **Richard Vass (Senior Statutory Auditor) For and on behalf of Price Bailey LLP**
Chartered Accountants and Statutory Auditors Tennyson House, Cambridge Business Park Cambridge, CB4 0WZ
Date: 4th August 2021
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## **Structure, Governance and Management**
## **Constitution**
EACH was incorporated as a private limited company by guarantee without share capital and is governed by the Memorandum and Articles of Association dated 16th April 1998 as amended. The charity has three wholly-owned subsidiaries:
- East Anglia’s Children’s Hospices (Trading) Limited, a private limited company governed by the Memorandum and Articles of Association dated 31st July 2014 as amended.
- Stable Trading Limited, a private limited company by guarantee and without share capital governed by the Memorandum and Articles of Association dated 1st February 1991 as amended. This company is currently dormant.
- Children’s Hospice for the Eastern Region, a private limited company without share capital governed by the Memorandum and Articles of Association dated 24th December 1992 as amended. This company is currently dormant.
EACH is governed by the Board of Trustees who are drawn from a variety of backgrounds and meet quarterly. The Board is responsible for setting the strategic direction of the charity. There is an approved scheme of delegation which enables decisions and actions to be taken by committees and the Management Executive. The Board Committees are:
- Clinical Governance Committee
- Finance and Income Generation Committee (which includes an investment sub-committee)
- Audit and Compliance Committee
- Human Resources Committee.
The Board has determined that the following powers are reserved to itself:
- Approval of reserved and delegated powers.
- Approval of the structure of arrangements for dealing with complaints.
- Approval of the corporate, organisational, management and control structure.
- Approval of the terms of reference of committees of the Board and the setting and variation of levels of delegation to the Chief Executive and Executive Directors.
- The appointment of members of the committees of the Board.
- The appointment of EACH representatives to outside bodies.
- The appointment of and the terms of service and remuneration policy applying to the Chief Executive and other Executive Directors.
- The appointment of investment and pension advisors, auditors, bankers, solicitors, insurers and other professional advisors.
- The approval of certain policies.
- Approval of the strategic objectives of the charity and of the key issues arising therefrom.
- Approval of the annual and five-year business plans.
- Approval of the operational budget for the forthcoming financial year, including any capital expenditure and any variations.
- Oversight of the charity’s operations and review of performance in the light of the strategic objectives, business plans and budgets.
- Acquisition, disposal or change of use of land or buildings.
- The introduction, extension or discontinuance of any significant activity or operation and the entering into of any transaction that is material strategically or by reason of size.
- Approval of contracts (capital or revenue) outside the budget likely to amount to over £20,000 during the period of the contract.
- Approval of action on legal and arbitration proceedings (including tribunal or alternative dispute resolutions involving the charity).
- Approval of investment strategy.
- The entering into of any indemnities or guarantees or any banking facilities and the creation of any charge or other encumbrance over assets of the charity.
- Approval of the charity’s annual report and accounts in compliance with current legislation.
- Approval of any significant changes in accounting policies or practices and of any alteration of the charity’s accounting reference date.
- Delegation to committees of the Board and to the Chief Executive.
- The appointment and role descriptions of the Chair, other officers of the charity and Trustees.
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## **Trustees serving during the year, appointment and induction**
New Trustees undergo an induction programme which involves visiting the various parts of the organisation, meeting with managers and staff, and observing at first hand the business of the charity. Trustees’ training requirements are reviewed on an annual basis.
During the year Trustee attendance at Board meetings was 95% (2020: 81%).
The Board has self-assessed against the requirements of the good governance code, identifying a review of the diversity of the Board as a key area of development.
In accordance with the Articles of Association a third of all Trustees in office are required to retire each year.
The Trustees who are required to retire by rotation are those who have been longest in office since their appointment or reappointment. The Trustees take into account the Charity Commission’s recommendation that the total length of office should not normally exceed nine years, however, the total period of appointment may be varied in any particular case if the other Trustees then serving determine that it would be in the interests of the charity to do so. Having carried out a review of the composition of the Board and taking into account the need for progressive refreshing, four Trustees retired during the year and five new Trustees were appointed. The Trustees noted that John Pickering has served a period in excess of nine years. The Board agreed that John Pickering would remain in post as Chair while plans are developed to recruit a new Chair. Periodically, the Board is assessed on skills, qualifications and experience to identify areas of Board strengths and weaknesses.
## **EACH Management Executive (MEX)**
Executive Directors in post:
## **Chief Executive**
Phil Gormley
## **Director of Care and Deputy Chief Executive**
Tracy Rennie
## **Director of Finance**
Ruth Kiani
The Management Executive (MEX) is headed by a Chief Executive who is supported by the Director of Care, Director of Finance, Director of Fundraising, Director of Retail and Director of People.
The Executive Directors are not directors within the meaning of the Companies Act, except for Phil Gormley, Ruth Kiani and Ian Nicolson who are directors within the meaning of the Companies Act for the subsidiary company East Anglia’s Children’s Hospices (Trading) Ltd. Ruth Kiani also acts as Company Secretary for East Anglia’s Children’s Hospices.
The Board last undertook a review of the salaries of the Executive Directors in 2020 drawing upon benchmarking of similar organisations. The Board further agreed that the salaries of Executive Directors salaries would be reviewed through a similar benchmarking exercise on a biennial basis.
## **Umbrella groups**
The charity is a member of both Hospice UK and Together for Short Lives, who act as umbrella organisations providing advice and support to member bodies in the field of palliative care. Together for Short Lives also operates a national fundraising scheme, of which EACH is a participant.
## **Partnership working**
EACH works in partnership with a variety of statutory and voluntary organisations engaged in providing care and support to children with life-threatening illnesses. Key partnership organisations are:
- ➢ The East of England Managed Clinical Network (MCN). EACH hosts this service which provides out-ofhours access to specialist medical support and advice, provides education, and develops and promotes good practice guidance. It comprises one tertiary centre and nine district general hospitals:
- Cambridge University Hospital Foundation Trust
- Norfolk & Norwich University Hospital NHS Trust
- West Suffolk Hospital, Bury St Edmunds, Suffolk
- Ipswich Hospital, Suffolk
- Colchester Hospital, Essex
## **Director of Fundraising**
Kevin Clements
## **Director of People**
Nicky Kendrick
- Princess Alexandra Hospital, Harlow, Essex
- James Paget Hospital, Gorleston, Norfolk
- Queen Elizabeth Hospital, King’s Lynn, Norfolk
- Hinchingbrooke Hospital, Huntingdon, Cambridgeshire
- Peterborough Hospital, Cambridgeshire.
## **Director of Retail**
Ian Nicolson
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- ➢ Community NHS Trusts including Norfolk Community Health and Care NHS Trust, Cambridge and Peterborough Foundation Trust, North and Mid and West Essex NHS Community Services.
- ➢ NHS England and County Council Commissioners, including NHS North East Essex Clinical Commissioning Group (CCG), NHS Mid Essex CCG, NHS West Essex CCG, NHS Norfolk and Waveney CCG, NHS Cambridgeshire and Peterborough CCG, NHS Ipswich and East Suffolk CCG, NHS West Suffolk CCG and Norfolk County Council.
- ➢ Other children’s hospices, including Keech Hospice Care in Bedfordshire, Haven House Hospice in West Essex and Little Havens Children’s Hospice, South Essex.
- ➢ Adult hospices, including St Elizabeth Hospice (Ipswich), Tapping House (Norfolk), Sue Ryder (Peterborough) and Arthur Rank Hospice (Cambridge).
EACH staff participate in the following external groups:
**Together for Short Lives Advisory Council.** The Director of Care is a member of this.
**The East of England Managed Clinical Network** (Norfolk, Suffolk, Cambridgeshire and North and West Essex). This is chaired by the EACH Medical Director and is attended by the Nurse Consultant Children’s Palliative Care and EACH Matrons.
## **Royal College of Nursing: Children & Young People Palliative Care Community.** The EACH Nurse Consultant is vice-chair of this group.
**Together for Short Lives/Association of Paediatric Palliative Medicine National Research Group.** This is attended by Nurse Consultant Children’s Palliative Care.
The Library and Information Service Manager and Nurse Consultant are members of the **editorial team for the Together for Short Lives publication: Synopsis.** This includes summaries of current research and evidencebased practice articles.
**National Children and Young People Hospice LTV Forum.** This group is chaired by the EACH Respiratory Nurse Specialist and attended by EACH Long-Term Ventilation Nurses.
## **Quality Account**
Under the Health Act 2009 and the NHS (Quality Accounts) Regulations 2010, there is a requirement for EACH to submit a Quality Account to the Secretary of State for Health. Quality Accounts are an annual statement from healthcare providers designed to demonstrate an organisation’s approach to ongoing quality improvement. The report is available to view on the NHS Choices website.
## **Other disclosures**
## **East of England Children’s Palliative Care Forum and county-based palliative care networks.**
These are responsible for developing and implementing the priorities of the Managed Clinical Network (MCN). The regional forum is chaired by the Director of Care and attended by the Medical Director and Nurse Consultant Children’s Palliative Care. The county-based networks are attended by the Nurse Consultant, Matrons and Service Managers.
The charity makes no grants to other organisations, has no social investment programme, holds no assets as a custodian Trustee and does not have powers to invest on a total return basis. No charity funds are in deficit. There are no uncertainties regarding the charity’s going concern basis. Pension commitments are described in note 8 to the financial statements
## **East of England Palliative & End of Life Care Strategic Clinical Network.**
The Director of Care and the EACH Medical Director attend this in their capacity as chairs of the CYP Palliative Care Forum and MCN respectively.
## **East of England Regional Action Group for Young**
**People.** This regional forum is chaired by an adult hospice clinician and information shared via the Palliative Care Forum.
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## **Company information**
**Trustees –** _in post at the point of the accounts being signed_ John Pickering (Chair) Lily Bacon Jasmine Bannon (Appointed 28th January 2021) Sheila Childerhouse Emma Deterding Trevor Holden (Appointed 18th November 2020) Iain Jamie (Appointed 18th November 2020) Helen Langton Annmarie Lloyd Jones Brad McLean Ann Monks Christopher Schwer (Appointed 18th November 2020) William Self Caroline Steggles (Appointed 18th November 2020) Loyola Weeks (Appointed 28th January 2021)
## **Royal Patron**
HRH The Duchess of Cambridge
## **Vice President**
Sir Martyn Lewis CBE
## **Patrons**
Mrs Julie Spence OBE QPM, HM Lord-Lieutenant of Cambridgeshire The Lady Dannatt MBE, HM Lord-Lieutenant of Norfolk The Countess of Euston, HM Lord-Lieutenant of Suffolk Mrs Jennifer Tolhurst, HM Lord-Lieutenant of Essex The Marchioness of Cholmondeley The Countess of Leicester Emma Deterding
## **Ambassadors**
Christina and Humphrey Burton CBE Frankie Dettori MBE Anthony Horowitz OBE Frankel Ed Sheeran Delia Smith CBE
## **Other Trustees in post during the year**
Robert Dawson (Resigned 28th January 2021) Roger Cobley (Resigned 18th November 2020) Paul Green (Resigned 18th November 2020) Judith Ingram (Resigned 18th November 2020)
## **Company Secretary**
Ruth Kiani
**Charities Number:** 1069284
**Registered Number:** 03550187
**VAT Number:** 216 8793 76
**Registered Office** Church Lane, Milton Cambridge, CB24 6AB
## **Statutory Auditors**
Price Bailey LLP, Tennyson House, Cambridge Business Park, Cambridge, CB4 0WZ
## **Bankers**
National Westminster Bank Plc., 5 Market Place, Wymondham, Norfolk, NR18 0AG
Barclays Bank Plc., 28 Chesterton Road, Cambridge, CB4 3AZ
## **Investment Managers**
J M Finn, 4 Coleman Street, London, EC2R 5TA
**Pg 50 • EACH Report and Accounts 2020-21 • www.each.org.uk**
**Pg 51 • EACH Report and Accounts 2020-21 • www.each.org.uk**
**East Anglia’s Children’s Hospices Milton** (Cambs and West Essex) • **The Nook** (Norfolk) • **The Treehouse** (Suffolk and East Essex)
**Call: 01223 800 800 Visit: www.each.org.uk**
EACHhospices EACH_hospices EACHhospices EACHhospices
**Royal Patron: HRH The Duchess of Cambridge**
Registered Charity No. 1069284 • Company No. 03550187 • Vat No. 216 8793 76