Company Reglstratlon No: 03755216 Charity No: 1075653 THE EAST LANCASHIRE HOSPICE (A registered charity and company limited by guarantee) Annual Report of the Trustees and Financial Statements For The Year Ended 31 March 2022 frmha MOORE & SMALLEY THE EAST LANCASHIRE HOSPICE CONTENTS Pagg Reference and admlnlstralive information Trustees, annual report Independent audilols report 18 Con5011dated statement of financial activities 21 Consolidated balance sheet 22 Balance sheet 23 Consolidated cash flow slatemenl 24 Notes lo the financial statements 25 THE EAST LANCASHIRE HOSPICE REFERENCE AND ADPAINISTRATIVE INFORMATION Trusteos MTFGParr MrT Kennedy Mrs A R Palllsler Mr R J Sutlleff Councillor Y Jan Vlrmanl Mrs G M Leacy Mr l M Willock Mr D McDonough Ichaliman) Iv1￿ Chairman) {se￿e(ary) Key Management Personnel (at 31 March 2022).. Chief Executlve Offlcer Mrs L Stevenson Medical Director Dr K Hogarth Mrs C Evans Clinical Servl¢•s Lead Fundraising & Lottery Load Mrs S Plunkett Company Number Rgglsterad charity number Tax exemption numbèr Reglstered office 3755216 1075653 XR 32869 The East Lancashire Hospice Park Lee Road Blackburn BB2 3NY Tel= Fax: 01254 287000 01254 665000 www.easllancshospice.org.tJk Auditor MHA Moore and Smalley Chartered Accounlanls & Stalulory Auditor Richard Hou58 Winckley Square Preston PR13HP THE EAST LANCASHIRE HOSPICE TRUSTEES, ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2022 The Trustees, who are alsts dlreclors ol the charity for the purposes of the Companies Act. submit their anTkual report and the audited finanaal slalemenls for the year ending 31 March 2022, which are also prepared to meet the requirements for a directors, report and accounts for Companiès Act purpos&s. The financlal statements have been prgpared in accordance with the accounting policies set out In notes to the accounts and comply with the charity's govemlng document, the Charities Act 2011 and Accountlng and Reporting by Charities.. Statement of Recommended Practice applic8blÉ to charities preparing their accounts In accordanc@ with Ihe Financial Reporting Standard applicable in the UK and Rèpublic of Ireland published in October 2019. Structure. Governance and Manag&m•nt Gov8rning Documont The charity is a charitable company limited by guarantee and not having a shar@ capital is exempl from the requiremènt to Lis8 the word 'limiled' as part of ils name. 11 is governed by a memorandum and articles of association and wa8 In¢orptsrated on 20 Aprll 1999 to laka over, from 1 July 1999, the acllvkle8 of The East Lancashlre Hospice Fund, an unlncorporatgd assoclation which was originally founded in 1981. The charity was 8nt6r@d in the Central Register of Charities with effect from 24 May 1999 and ?￿pIed by HM Revenue & Customs as a charlly for lax purposes. Rocruitmont and Appolntment of Trustees The Board of East Lancashire Hospice is made up of 8 trustees who are all r8gislBred Volunte￿S. Recruilmenl 18 undertaken via a formal, in¢lusSve process and positions are advertised in a largeled way In order lo reach a specialist audience lo maxlmlse the se¢uHng of appropriate skills and diversity mix. Pol@ntsal candidates a￿ invited to apply by a CV. and a formal process lakes place Including interview with a panel of Tiuslees. Trustees are appointed for o period of three years and may be re-elected after this period for a further three. Trustee induction consists of an Inducllon pack, this incorpor818s key information on the charity, and thè r8sponsibililias of being a Trustee. The induction process provides opportunllies lo meet staff and Heads of Service in order to gain a greater understanding of the hospice. Trustees are also supportad to altand appropriate external Iralnlng events that will assist them with their role. They also undertake organisatlonal mandatory training as appropriate lo theiT role. Organlsational We continued to be affected by the Covid-19 pandemic both within our community and Inpali8nt sellings, bringing difficulties and challenges and at limes sadness for far lor) many. We had already changed our ways of working and living and continued to do so throughout the year. We know that as we slowly return lo "noTmal" thèrè will be changes and consequences we are yel to fully realis8 - bul we are pDsilive about that. Whilst we have felt Ihal everything around us has changed some thlngs have remalned conslanl. East Lan¢ashire Hospice has continued lo provide Mlal care and support to people living wllh a terminal illness and bereavement In Blackbum, D8rw&n, Hyndbum and the Ribble Valley. We have continued to do this 365days a year over 24hrs 7 days a week as we have always dono. However it has changed as the communitles we serv8 ar8 const8nlly facing naw and different demands due lo the pandemic, sometimes on a daily basis. In this context we have looked at ourselves as an organisation to ensure we have been flexible and adaptable to enable us to meet these different demands. Our priorSty has been to keep as many Servi￿ open and accessible as possible for those people who n8gd us, as well as developlng new seNice models according lo the needs of the communities we servo whilst supporting our NHS colleagues. Such vision and rapid delivery of new and changed $éNiCéS has taken bravery, decisiveness and real commitment by all our staff and we would want to publlcly acknowledge and applaud all our staff who contlnu to givg to make things happen. THE EAST LANCASHIRE HOSPICE TRUSTEES. ANNUAL REPORT {CONTINUEDI FOR THE YEAR ENDED 31 MARCH 2022 Organlsational {contlnuedl We have had lo adopt new methods lo ensure we oonlinue to have a robust frarnework for governance which has rneanl that the majority of the govemance 8rrangem8nls have takon plac8 by Zoom, but in essence their terms of Teference and purpose h8ve remalned the samo wllh th8 addillon of the added d8mands, responslbilitles and challenges that the pandemlc brought us. The Board of TTuslees have conllnued lo meet on a monthly basis to direct and manage the governance of the hospice. The Trustees have ultimate responslblllly for settlng the strategic diredion of the hospice and Ihelr role is to ensure that the hospice Is financially viable, well run and thal11 meets th8 needs for whlch11 was set up. A CEO is appolnled by the board lo operalionally mar)age the hosplce supported by a Senlor Leadership Team with predetermined levels of authority. Matters such as policy, strategy and budgets are prepared for ¢onslderalion and approval by the trustees who monitor the implementation of these plans. Departmgnlal Lèads are r8sponsibla to the appropriat8 Hèads of Sarvice, who arB r8sponsible to th8 CEO who is in tum responsibl8 to the Board of Trustees. We contintjed lo have four governance committeas covering all aspects of the organisation although risk and cllnical combined over Ihe past year to more effectively deal with the challonges of the pandemic.. Clinical Governance Committee Finance Governance Committeg Rlsk GoveTnance CommSllee Corporate Governance Commltt88 Each commltteo worked lo Ils orlginal lerms of Teference each taking on the additional governanc8 responsibililles associated with the pandemic. The membership consists of elected members of the Board ol Truslees, Senior Leadership Team, and Heads of Service who have bgen selected for their particulaT skills, experience and knowledge. Committees meet al Igasl onoe per quart8r and report into th8 Corporate Governance Committee which in turn r8POrts into the main board meeting on a quarterly basis. The Senior Leadership Team. Head of Finance and Head of Quality and Governance present quarterfy comprehensive written reports lo the Board of Trustees. The report covers key risk issues which are inclusive of all aspects of govornance provlding both qualilalive and quanlllalive data. To support the management ar Governance dufing the pandemic additional briefingl situational reports have been presented lo the Board of Trusltsos on a monthly basis. To support our gov8rnance arrang8m8n15 during the pandemic we work@d with our partner organisalions across East Lancashlre havlng dally situatlonal update mgatlngs. We meet quarterty with our Cllnlcal Commlssloning Group where the content of the Board report forms the basls of dlsGusslon and review. Related Partle5 and Cooperatlon wlth Other Organlsatlons One of the rK)5I1ive learnlngs we have taken forward from the pandem1¢ this year is the Iniportan¢e of worklng with others. The h05pice has continued to work lo maintsin strong relationships and partnerships with local organisations and our local community and il Is these key partnerships and rela11onships that have helped us lo meet the many challenges we have fa￿d throughout the pandemic. Vve believe that the hospice belongs lo our community 8nd that we exist In order lo be able to provide a service which really makes a difference to Ihg quality of tho Ilves of patien15 and their familios which has bogn $ven moro important during this past year a8 many of our palienl$ have faced Isolallon 81ong wllh disrupllon to Ih8lr norm81 support and carè systems. Throughout the last year we have Worked on a dally basis wlth local key provlders both in hospital and the Community the aim being to keep palllalive and end of Ilfe pallenls al home and out of hospllal, often changing our services al short notice lo meet with the constant changes in demand. Working collectively lo Improve what w8 could offer ensurlng pallenls and thgir families w8r8 at tho Centre of what wg did. Key members of staff contlnued to bo involved in local, reglonal and nallonal network groups. whlch supported the sharing of best practice, ￿nCh marklng and mutual Support In last year'8 ev8r-changlng lan(18¢ape. THE EAST LANCASHIRE HOSPICE TRUSTEES, ANNUAL REPORT ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2022 Related Partie5 and Cooporatlon wlth Other Organisations Icontinuèdl We continue to have inlegral&d worknng 8rr8ngements which has helped and supporled pallents and their families by enabling them lo receive the right Care at the right lime and in the right place. Pay Pollcy for Staff All Trustegs glvg their time freely and Trustegs received no remunarat]on in th8 yèar ar*d nor have they received any payment for axpenses throughout th8 year. The Trustees consider the S8nlor Leadorshlp Team to be tha kay management parsonnèl of tha charity, in Charge of directing. controlllng. runnlng and operating the charity on a day.lo.day basis. All 8mploy8d staff are remunerated according to the responslblllllos of thelr job description. Job descripllons are revl8wed on an annual basis as part of the Personal Developrnent Review IPDRI process. Benchmarks are used nallonally, regionally and locally. All staff including the CEO and Senior Lead8rshlp Team recelve the same annual cost of living pay Increa888 and other benefits of employment that are agreed annually by the Board of Trustèes. Publlc Benefit Statement The Trustees have complièd with th8 Charities Acl to have regard lo the public bgn9fit guldance published by tho Charlty Commission. The Trustegs believe that the charlly providès a public benefit as ils principal actlvlty Is to enhanc8 the quality of Ilfe for individuals with a lrfe limlting Illness. The aim being lo provide specialist. supportive and end of Ilfe palliative care lo any adult in the communille$ wa $8rve, without discrimination, the place of their Choicè, gnd to Dffer support to them, their relatlves, carers and frltsnds. This Is provided in various sellings including, in thg hospice (Inpallenls, Specialist and Supportive oulpalienls and a hLrge variety of support and wellbeing services) In patients own homes (Specialist Clinlcal Nurses and Hospice at Home). We a180 provide specialist, generalist and end of life palliative care educallon wilhln the organisalKJn and lo the wider community. Over the past year these acliviti8s and Services have been adapted to ensure they are deliv8red in a Covid safe environment working lo national and local guidelines. Our Staff and V¢lunteers The hospice is commilled to an equal opportunlties approach in everything il does. Thls means that we Seek to ensure that anyone connected to us, from patients and families Ihrough to donors. supporters, volunlgers and staff are ITealed falrly, appropriately and with dignity and respect. From our day-to-day operational management lo our slraleglc de¢islon-making, we consider how we work may aff8Ct different groups and actively ellminale or reduce negative Impact and dlscrfminallon. All our staff from 811 departments of the organisation have had lo work flexibly and creatively adapting lo new and diffetenl way¥ of working anrt in some c2ses taking on new roles and responsibilities as we tslrove lo ensure everyone received the care they needed. Every single one of our staff played a vltal rol8 in halping patiènts, families and each other throughout this yèar. Throughout the pandemic we have been fortunat8 and 8Xtrèmèly gr2lÈful lo continue lo be supported by a small team of highly dedicated, harifvlorking and skilled volunteers. Over the year we have walcomed more volunteers back as well as wel¢oming new fac85. One thing we are sure of is that they have bfjen greatly missed by everyone in supporting our 51aff and patSents in the many areas of the hoSp￿e they truly are amazing p8opI8. We continue lo be proactive in gaining feedback from our staff and volunteers and we completed a Staff survey pre Covid-19 which will be regularly repeated. We also ask our external stakeholders for their views as we constanlly slrbve lo engage with as wide a range of people as posslble In all aspeels of the hospice, to enable us to develop In a way which builds our organisation's learning, understanding, Irusl and responsiveness. We are now preparing lo Introdu¢8 a mechanism for regular slaft feedback that wlll enable us to understand how staff are feeling about their wo￿, their support and environment and furth8r davelop the culture of eng8gemBnl and collaboration that makes such a difference to our team and ultimately the services we provide. THE EAST LANCASHIRE HOSPICE TRUSTEES, ANNUAL REPORT ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2022 Objactivgs and Activitles The prlnclpal objectives of the charity as sel out In Ihg Memorandum and Articles of Association are to PTovide speclallsl, supportive and end of life care for adults who are suffering from a life limiting illness to the communities we seNe In Blackburn, Darwen. Hyndburn and the Rlbble Valley. Wg also aSm lo collaborate and form partnershlps with other providers of palliative care. different fallh groups, Cultural communiligs as w&ll as divorse organlsalions that support patients and thèir familles livlng with a life limiting Illness and make our speclallsl resources avallable to them. Quality of care for patients and their families is al the heart of what we do al East Lancashire Hospice and our charitable adlvilies are focused on offerSng free care and support lo patients and their families from the moment they are inforned that their illness is incurable r8gardlo55 of diagnosis. Referrals are accepted from a variety of health care professionals and pallenls can self-refer too many of our seNlces with places allocated according to ne8d. The aclivltles 8UPPOrting these obl8Ctlve$ are - A ten-bgddèd Inpatiant Unil wh&r8 sp8clalist palliatSve care Is delivered by a mulli-disciplinary team A community team, which consists of Clinical Nurse Specialists who work with G8neral Pr8clilionèrs and other Health Care Professionals, and a Hospice al Home team who support the provlslon of palllatlv6 and end of Ilfe carg In people's own hom6S. Support and Wellbein9 Servlces consistlng of Creative and Supportive Therapy Counselling Famlly Support Complementary Theraples Physiolherapy Oulpali8nls Our services help sUPPOrt people wllh a life lim51ing illness from the first days of uncertalnty through to the last days of life, doath and b￿eaVemenl. These seTvices are offered irr&speclive of b8¢kground or belief and we are commilled lo offer care based on need not diagnosis. We recognise the increasing ng8d foi hlgh quality palliative care for people living with multiple conditions notjust a single diagnosis such as cancer. We have a multi-disciplinary t8am cov8ring all aspècts of the work we do. Our philosophy of care is that we care for the whole person, and thelr lamlw frlends and carers. The wlshes of each patient and their family are carefully assessed with relevant members ol the multidisciplinary team so that they can be 5UPPOrted in thg way they want. be it physically. socially, emotlonally. psychologlcally and lor splrllually. We rospect each palienl's prlorities and striv8 to anable them lo achleve their persona5 goals. Our clinical team8 are 5UPPOrted by a range of support services including facililles. domesllc, catering, administration. finance and volunteer8 all play a key role in ensuring that patlents and Ihelr familigs have the best possible care. Th8 Care Quality Commlssion has a record ol our activities and mollilois Lts through infomiallon suppli6d dlreclly lo them in the slalulory notifications we make, In wiillng alioul events and chang8s lo service. The Care Quality Comwnlsslon ICQCI ins￿¢1S the hospice and their report is posted on the commissions, webslte and can be accessed via 8 Ilnk on OLJr w8bslle. There Is a programme of planned revlews, whlch lako place on unannounced visits. On OLÈr last Inspecllon we were classed as Oulslandlng in Caring, Effectiv8 and Rasponsive and recelved an overall ratlng of Oulstanding for the organisallon. The CQC also had lo adapt ils methodology during Covid-19 and we now have regular monitorin9 calls Wlth them to satisfy Ihgm with our complian¢g, quality and safety. THE EAST LANCASHIRE HOSPICE TRUSTEES, ANNUAL REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022 Objectives and A¢tivitl8$ (¢ontlnuod) We have a comprehensive annual audit programme, to ensure Compliance with jegislalion and best practice Covering all asp?cls of the organisation including clinitral and non-clinical aclivltles. These are implemented and monltored through our GovernanGe structure to provide thg Trustees wllh assurancas that we ar8 compliar¢l with our legal and statutory obligations. The hospice continues to play a part In the widor healthcara agènda Ihrough Palliative Care Locallty Groups within East Lancashlre and through the wider Neiwork groups wllhln Lancashire and South Cumbria. Together with other hospS¢es in the reglon we are a part of Lancashlre and South CumbrSa Hospices Together Partnership {LSCHT} whloh Is another way of making sure hospice end of life and pallialiva care voices are heard. stratogl¢ r•port Achlevements and Perfomjance We are proud to continue lo have a CQC rating of oulslanding and despite this reassuring result we continue lo review and act upon feedback as well a8 reviewing the effectiveness and efficiencies of what we do. Despite the many challenges that the pantyemic has brought lo us we have continued lo operate our services to the people of Blackburn, Darwen, Hyndburn and the Ribble Valley. In order lo achleve Ihls we have had to in many ways adjust the way we work and d&liv8r our satvices throughout the organisalion, however onè thing that has remained unchanged is that we have continued lo care and support people living with a terminal illn055. W6 did this by looking into ourseEves as people and as an tsrg8nis8tion to ensure that we were able lo do what w8 do ￿st glve excellent care and support to Ihosa who neod us at th8 rlghl lime. in the right place. by the right people. The Covid-19 pandemic has brought about very many naw ways of Worklng, collaboratlons with kay partners and very Ihoughl-provoking decislons about th8 way we engage and deliver s&rvlces. Thare is much lo be said for the creativity and responsiveness that has unfolded within our teams In very difficult times. We continu8 lo have an honest and open relationship wllh our 2 local CCGS {allhough the structure Is changing In 20221 with a joint desire to enable everyone to access good end of lrfe care provision. We have worked close5y wlth Ihern lo ensure future s8rvlces are designed to meet the needs of th8 local populatlon. During the last year w8 Implemented plans for a single point of access to enable responsive support for those in our community working collaboT81ivety with lead commissioners, partner agencies Includlng Marie Curie, domiciliary agencies, district nursing seNices and thè continuing health care team. We have be8n instrumantal in maximising the use of all available night support capaclly and slrenglhening the quality of information shared with key partners for the benefit of those in our care. The CODrdin81ion and administrative work that underpins Ihls success cannot be undereslitnated and Is testament to thè er8alivily and commitment of all Involved. As this projeel is a pilot evaluation is ongoing and comynissioning intentions are lo be confirmed. W8 conllnued lo work wlth our Pandemic Plan which was designèd to 8UPPOrt thè hospic8 through the changes w8 8nvis8gèd we would face in delivering servi￿5 and ensuring our sustsinability. 11 primarily focused on rl8k management and how we would protect patients. staff and volunl88r8 lo provld8 safe seNices In the wake of the p8ndemlc. THE EAST LANCASHIRE HOSPICE TRUSTEES, ANNUAL REPORT ICOMTINUEDI FOR THE YEAR ENDED 31 MARCH 2022 Achlevemonts and Performancg (¢ontlnued) The impact of the pandemic has be8n exlens5ve and prolonged with the significant challenge of unplanned Covid related 2bsence that has truly evidenced the commitment and responsiveness of our hospice staff in maintaining senfice provssion. Thè need for 8 focus on staff support and wellbeing has become increasingly evident wilh the easing of reslriclion5 and plans for a relurn lo a'new normal. very much welcomed. No-one however underestSmales thè challenge we face In achlevlng thls. Whilst th8 focus dLtring this lime was adapling services to meet changlng demands, wfr also considered our fLtrture flnancial suslalnabllily, the scale of the Challenge and considerallon of the future. Wa re-assessed our fundTaising strategy adapting and changing the ways we generated income maklng a new survival plan for the year whllsl acknowledglng the future changes needed as the pandemic contlnues to an effect within the public arena and the way we live and work. The hospice continues lo play a role in the wider healthcare agenda through Palllalivg Cale locality groups in the Lancashire and Cumbria Clinical Commissioning Group areas engaging with Iovdl commissioners aTound the suslainabilily and transformation plan. As mgnlioned the hospice became part of the LSCHT collaborallve lo the regions sectors vo6ce and the Impact we all make. Restdclions eased durtng the latter part of the yeaT and engagement with commlssioners and key slak8holders focused on prèparation for the easing of restrictions and resloratlon planning. We started the progression toward a reluin lo 'no¥mal' while IBarning from all aspects of our exper¢en¢e du¥ing the pandemic and the opportunities and challenges that came with it. The pathway out of th8 pandem1c has p8rhaps beèn mor8 challenging than entering Into il,. as responsibility changing Irom government sel dirgctives and legal requiromenls lo indlvldual and social responsibllity has al times been both daunting and confusing for all Goncerned. We continued wth our premises modefnisalion programme although if somewhat al a slower pace which has enhanced the environment and facilities for pali@Dl's. relatives, stsff and volunl8¢1s. Work in the gardens and grounds has been intensified with the retum of volunteers. Improvement work in reception wa5 COtnplBled In readiness for the reopening of the Spa￿ and the return of our many valued volunteers. Mindful of the privacy and dignity of our patients and following extensive Tefurbishmgnl of our Calé Retreat, we decided lo erect somè relract8bl& screens to create privacy as patients head to our In Palienl Un51. There has been a slvJht delay in Ihelr Inslallallon because of CDvld-19. Our tèams throughout hospice services have demonstrated increasing flexibility this year as we have continued to adapt to the changing needs and Preferences of the patients and families who use our servi¢e$' as restrictions h8v8 8as@d thè level of anxiety amongst some of our service users has increased meaning contacts have been lallored lo the very IndSvldual needs we are seeing amongst people on our caseloads. W8 continued to SUPPOrt our NHS colleagues stepping up our services lo support caring for palients in the communlty lo support unavoldable admissions lo hospitals. We also provided Ihorough support with in- reach assessment lo facilitate timely transfer from the acute hospital 8etting to ho8plce care. Responsive Inletvention has supported hospital discharge for those patients awaiting packages of care facilitated by Hospice at Home in order to free up hospital beds sooner where this has been appropriate. We have continued to meet patient need through continuous revlew of both demand on servlc&s and staff capacity so that rasponsive support Is available 24 hours a day and 7 day8 a week. Thi8 has meant flexlbillly as clrcumslances changed lo deliver out-reach from Inpalienl Unil Into community as well as the dèployment of staff to lh8 Inpatient Unit. THE EAST LANCASHIRE HOSPICE TRUSTEES, ANNUAL REPORT ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2022 Achievemenls and Perfomi8n¢e (eontlnued) Excellent management of infection control was noted and commended by local authority Infection Prevention & Control IIPCI leam on a review vi8il. The value of the Introduction of PPE lead was evident as the pandemlc progressed; the lead provided consistency acr08S the h08PiC6 and in engaging with external partners on IPC lead Issueslsupplies. The year has been very Ghallenging for IPU staff who had to deal with a change of approach lo visiting arrangemgnls after being used lo 2417 access. This proved to be a continuous challenge even afler r8slrictions eased and autonomy of practitioners and ind￿[dual assessmanl of patient need was emphasised. Ther8 was a fear of getting il wrong or doing different things for differgnl p8ople. However, the IPU remained accesslblg all yoar round and patients were able to receive v181tors as well as b8lng supported to"see" them digitally. Staff worklng at the hosplce throughout the pandemic and those retumlng predomlnantly reported f881ing very safe heTe due lo the measur&$ in placè although retumers found il a very different Bnvironment compared lo the one they left. There has bBgn a great Commitment by all concerned to ensure the hospice returned lo the bustling community il was pre-covid. Early introduction lat the start of pandemlc) of a lelèphons absence Ilne and maintenance of this during tha last year has enabled 2417 reporting. early support for staff and timely ex18rnal reporting and guidance to ensure tlmely advice and thus limit the spread of Infectlon. In keeping with increased demand for night support, r051ers and work allocation systems were reviewed to enable responsive inletvention for those most In need In our communitl8s and Inpalienl UniL We continued lo develop new models of staff engag8m8nt and support at all levels throughout Ihg organisalion lo support the changes and challenges this brought lo staff and their families. Some of the different methods of staff support have induded virtual meetings and, over Ilme when 11 has been safe to do so, more face lo face meetings. Flèxibility has been available from direct lin8 managers in recognition of personal and professional challenges faced by staff and their families. Access lo hospice funded healthcare, health and wellbeing activities and helplines have been promoted. Thos8 unfortunate lo have experienced Covld-19 themselv85 have bo¢n dlre¢lly supported by Ilne managers and contact rnainlained during thelr absence. Inlroducllon durlng the pandèmic of 'Covid and a Cuppa. as a means of virtual supportlsharlng and learning for anyone working in carelheallh affgc16d In any way by Covid-19. This activity was led by our Counsellors. Engaged with staff via a survey lo build an understanding of thè éffèct that tha pandernlc had. The survey was completèd gnd a working group was established lo revigw findings, though the &ffgctiven8ss of the group was affected by atlendancelavailabilily because of Covid-19. Headlines were shared,. however tho Impact of Covid-19 became Incr9aslngly more apparent and the survgy will be relaunched durlng 2022. The key themes are discussed during 1..1 s and the mora convèrsational approach lo PDRS introduced Ihls year. Introdu¢tion of'click and Connect, as a virtual forum facilitsted by repr8s&nlatlves from each department as support me¢hanlsm for Volunteers. This proved very popular wllh some volunteers. Heads of S8Nice led contact with Ihelr own volunteers during pandemic and planned the gradual reintroduction back into services - some soonbr than olh8rs bul thg whole process was Gollaboralwe and personalised. Feedback was soughl from patients 8CCBssing Supporl and Wellbeing lo inform plans prlor lo restrictions bein9 eased land during that tlma) to gain aw8r8ness of their needs and preference5. hopes and fears. Programmeslevents and activities were then planned around fgedback where feasible. THE EAST LANCASHIRE HOSPICE TRUSTEES, ANNUAL REPORT {CONTINUEDI FOR THE YEAR ENDED 31 MARCH 2022 Achlevements and Porforniance (conllnued} We sought feedback from staff groups to galn theST vlews of how, dosplte the pandemic, we had sllll mad8 progress towards our slralegic plans perhaps In very differenV¢reallve ways. The good response we received Tneanl we could compile a summary report for year end and boost staff as they were able lo see their achievements. The inlensily of one lo one and small group support provlded throughout the year de8pil8 lockdown and rèstrictions in place was prOv￿ed by line managers plLES addS1ional peer support. Thls was positively recelved by staff and volunteers. Reviewed our Income G8neratson strategy redeslgning our retail and community fundraising servI￿s, focussing on marketing and social media and innovating how we asked our community for support by focusging mora on the impact of our services. Ros&rv8s Pollcy and Golng Concom Thè Board of Trustees review the reserves policy of the charity annually. Finance GoveTnance Committee wnonSlors and revlows reserves reportlng lo board on a quarterly basis. Resetves and investment reviews encompass all income and exper)dilure stfeams, the need to match vaTiabl8 incomè with fixed commitments and longer-term plans for a sustainable future. When defictts occur, we rely on our reserves to enable us lo continue lo provide hospice services for our patients and their families. The prudent approach, taken by the Board of TTllStees, takes into consideration the current potential unstable position. In that grants rocelved may slgn5ficantly drop and offer no security in terms of long-lerm financial planning. The gerteral policy remain5 one of a cautlOU8 approach in th8 event of a drop In CCG grant fundlng andlor voluntary inwm?. Developments ar8 plannèd for th8 upcoming yaBrs and Include the following: Review of community seNlces lo meet Ihe changlng needs of patients Improving Ihg garden and Duldoor space for patients and their families Replacements to patient equipment and enhancements to P81ients fadlilles Continue lo invest in educating our staff and volunteers to ensure we are fil for purpose Continue to upgrade tho hosplc8 envlronmonl for patients and their relaliv8s, carers and visitors. Investments are bein9 closely montiored by our investment managers, the Flnanca Governance Committee is kept well infomi8d and recewes quarterly valuations of porttolios and the hospice has a dedicated points of contsct for any quesllons. In the event of the Investment Manager's insolvency, assets would remaln in trust wllh the nomlnee company and would not be impacted by the insolvency. Th8 primary objective of the Investment policy Is to provlde financial security a￿d stsbility for the hospice. The investment approaGh also rècognises that the hospice is exposed lo the risk of a sharp fall in ils income due to the variabllity ol lega¢y incom8 and don8lKJns and the uncertainty ot fulijre funds from the govemment. To reflect this pos11ion the hosplce conllnues lo Invest In a varfed portfolS0. In 2021122 the hospice continued lo ensure sufflclorbt availablo funds were avallable lo dellver a quallly service focussed on sustainability. The hospice remains in a healthy position financially, our reseTves provide a buffer for uninlgrrupled services whilst ensuring the hospice remains a going concem. The hospice reseNeS policy is that il should maintain a minimum of 24 months running costs. THE EAST LANCASHIRE HOSPICE TRUSTEES. ANNUAL REPORT (CONTINUED) FOR THEYEAR ENDED 31 MARCH 2022 Reserves Poll¢y and Golng Concem (continued) Total res8rves as at 31 March 2022 were £16,213,283. of which £16.211.71015 unreslrlcled funds and £1.573 is restriGled funds. After Ihts deduction from total funds of restricted lunds, designated funds and tangibl6 fixed assets the totsl reserves are £14,600,596. This rgseryes value Gurrenlly represents no more than 42 months of budgeted expenditure. which meets thè r8s&rves pollcy. Any unr8Strict8d general funds, surplus lo the minimum resarves policy, wlll be used to safeguard future financial 8uslaln&blllty and to finan￿ short and long term dgv8lopmont plans, some of which will require significant levels of fundlng. Reserves and inveslm8nls are reviewed each quarter in11ghl of the major challenges facing the organisalion in temis of rising costs, patient expecialions, and the chall8nges that we faced as a consequence of the pandemic. Ensuring compliance with information govemance and data prolgction rgmains high on our agenda and is Incorporalod into our 2020-2023 strategic objeclwes action plan. An organisational risk reglstgr is monitored by the Govornance framewoyk. Inv8s*ment Pollcy The Memorandum and Articl&s of Associatlon of the East Lancashlre Hosplce hold no reslrlclKJns relating to Inv88tmenls. The inv8slments portrollo is monitored and managed on behalf of the Board of Trustees by the Finance Governance Commlttee which reports quarterly to the board. All Investment proposals and mov8m8nts are reported to the Board of Trustees for their appToval, in order that the Trustees can dlscharge their responsibilities in accordance wllh Secllon 4 of the Trustee Act 2000. The hospice aSms lo generate growth ancl maximise returns wilhln the paramelors of the risk profil8. comblnalion of Investments considered to be low risk {up to 80Yol and medium risk {up to 20(A* I. The Trustees also employ the servl¢es of 2 Investment Management companies lo manage the day to day op@ralions Df the Investment funds, both of which are under a Discrolionary Client Agreement. The Investment Managers havo full dlscrellon lo operate within th8 limits of a strategy agreed wllh and regularly reviewed by th Board of Trustees. CCLA Inveslm8nt Manag8m@nl Limited was appointed in 2015116 and holding dlscrelionary management of 20% of tho oveiall Investment portfolio within a medium risk profile Ilhis 200/. being th8 Ethical Funds hèld with CCLA). Their purpose 18 lo help cliants maximise their impact on society by harnessing the power of investment markets. They concentrate on working with charilles, religious and public sector organisalions {CCLA slands for Churches, Charities and Local Aulhoritiesl. Investments held with CCLA performed extremely well Ihroughout 2021122 wn55dering the lurbulence the stock markets experienced in March 2022. The CCLA invastm@nt portrolio de¢reasad in value in March following the global financial impact of the war in Ukralnts, the Impact on supply chains of continuing So¢kdowns in China and the high levels of inflation. Since then markets have sean a continued decline due lo the continuing prassures and tho capital values are down by approximately 100A for quarter one in 2022123. Close BTolhors, also appolnted in 2015116 and holding discretionary management of 20% of th8 overall Invéstmènt portfolio, operat6 wilhln a medium risk profile. Investments performed oxlremoly well through the period frorTt April 2021 to the end of the calendar year bul markets encountered sevère lurbulance in the first quarter of 2022. Relums for the year as a whole remalned positive. Investment maTkets have remained Challenging Ihrou9h the first half of 2Q22 followlng the global financial impaol of tha war in UkTaine. Investments are being closely monitored by our investment managers, the Fin8n¢e Governanc8 Committee is kept w811 infomi8d and r8ceiv6s quarterly valuations of portfolios and the hospice has a dedlcated points of contact for any questlons. In the event of the Investment Managar's Insolvency, assets would r8main in trijst with the nomlnee company and would not be impacted by the Insolvency. 10- THE EAST LANCASHIRE HOSPICE TRUSTEES, ANNUAL REPORT (CONTINUED} FOR THE YEAR ENDED 31 MARCH 2022 Invaslmont Policy (contlnuod) The prlmary oble¢tive of the inveslrnent pollcy Is lo provide financial security and stability for the hospice. The Investment approach also re¢ognise8 that the hospSce 18 exposed lo the risk of a sharp fall in ils income due to the variability of legacy Sncome and donations and the uncortainty of funds from the NHS IGovernm8nt). To refl8¢1 this position the hospice continues to invest in a varled portfollo. Flnan¢lal revlew This Is our 37DI year operatlng as East Lancashlre Hosplce and Is our 14￿ year of belng an independent charlty. Overall th8 hospi￿ and shops income is down this year, g8neraling a nel surplus of £207.96212020121'. surplus of £611.4421. Induding unrealised galns on investments the total net income for the year Is £1,084.608 {2020121.' lolal nel incomè was £2,445,246). Thls was mainly due to investment gains being valued at £1,833.804 on 31st March 2021, compared to £876,646 Inveslmenl gains as at 31 si March 2022. Total income, excluding unreallsed gains on inveslmenls, has decreased ov8rall this year by £234,788. Thls is tnainly due lo claiming funds last year from NHS England and Ihe government fuTlough funding in 2020121., had we not re￿ived some additional funding from the governmgnl this year the 2021122 year-end would have resulted in a deficit before investment gains. We are most grateful to all those that donate to the hospice and those who wish East Lancashlre Hospice lo benefit from thelr Ilfe 8avlngs by leaving a legacy to us in their will. The hospice highly depends on the goodwill of local communitie8 lo ensure sufficient funding 18 available for palignl servlces lo opgrale. In addS1ion to our public donors and corporate supporters, hospice staff and volunteers fiequenlly offer thelr Ilme, treasure and lal8nl$ to help plan and organise fundraising events and to promote h05pice servI￿s. Volunta Income Voluntary income remains under threat due lo the potential of another rece88ion a5 well as the increasing number of charii(es, both local and national, all ¢ompeling for the same 'donor pound,. Our 2020-23 strategy is focused on our own income generation activities, in addition to supporting our local cownmunlligs and PLttting our patients al the centre of all that we do. Donation8 are down by £8.7K and tho £301,205 Includgs £86K of donallons representing the proceeds from the sale of donated goods within the Tradlng company on whlch Glft Aid has b88n claimed (in 2020121.. Ihe £309,886 Sncluded £12K and In 2019120 il was £101 Kl. Legacy income is on par with budget thls year. Grant Fundin Clinical Commissioning GTOUP ICCGI fvndlng normally equates to approximately 113rd ol overall running ¢osl8, so the hospice needs lo raise over £2 million lo break even. The Trustees are very grateful for the support currently provided by the 2 CCGS and they recognise Ihe excellent working relationship that exists between the organisalions. Future gTanl funding in the long8r-lèrm still rèmains uncertain, which is partly the reason why we are holding onto reserves. as w811 as holdlng Investments alming to genorale additional incom8 for future years. Inve5tmgnts notp Investments Income Is slightly high8r Ihls year, only by £202 {£64,182 in 2021122 compared lo £63,980 In 2020J211- Overall. gains on Investments hav& slgnlflcanlly decraaseoj. Gains on investments are valued at £876,646 {2020121.' gains on investments were valued at £1,833,804). Income G8n8fatlon To enable us lo ronlinue lo prowde our excellent specialist. SLtpportive and end of life care our income generation learn have had to work especlally hard this year lo deal with the enormous challenges Ihal the pandemic brought with it in terms of working wilh our communities lo generate the income we needed. Last year income from fLFndTaising was signlficantly down due to the cancdlalion of avgnls and drop in mmunity and corporal8 fundraislng, therefore it is pleasing lo report that following the Ilftlng of the majority of the reslrlcllons, fundralslng income has increased in 2021122 from £314K last year to £391K this year. This however do8s not represent a 'nom181' y&ar, as prior to the Covid-19 pandemic fundralsing Income was £572K therefore over £180K down when comparBd lo a pre-pandemlc year. THE EAST LANCASHIRE HOSPICE TRUSTEES, ANNUAL REPORT ICONTINUEDI FOR THE YEAR ENDED 31 PdlARCH 2022 Flnanclal review (continued) The IncomÈ Generation Team quickly adapted lo face these challenges head on showing a commitment and determlnalion to generate the income that was needed to make sure our patients re￿IVed the care they ne8d8d. W8 have contlnued to engage with our supporters ￿)th through OUT printed newsletters and on soclal medla providlng the opportunity for fa￿ lo face engagement wh8n11 has béèn saf8 and digital engagement. Likewise, we have Saen our customers slowly returning to our shops and we have worked hard to make sure our on line shopping expeTienco is as good as it can be. We know how important 11 Is lo reach people within thelr own homès and to provid8 channels for Ihelr support. We were pleased to support one of our young851 fundTaisprs 'Young Frank Waddington" as he raised over £625 for the hospice as a thank you for the care his grandfather received her8. Young Frank took donations in retum for meals al his local pub. We also ran a campaign whlch had a patlent slory al Its h6art to explain the difference our carè makes not only for the patient bul fvr close family and carers. The campalgn was called "Th8 Covid Pandemlc Impact Appeal. and also highligh18d a naw Bpproach fi)r us to fundraising and story-lelllng. Our new restaurant, Café Retreat, Ilhat had only just opèned lo the publicl, had lo dose its doors when Covid- 19 hil but used this time lo set up a succsssfu1 external catering seNice and developed Innovatlve services Including °Click and Collect Fish Friday. and many others. Ensuring a high SDclal media presence Ihrou9houl has been paramount to keeping11 in the forefront of our customers, minds. staff were welcomed back lo Café Retreat part way through the year but our service to the Inpalienl Unll was continuous Ihroughoul the year. With all our shops having to close durlng the pandemic the Board of Trustees made a d8clsion to redes￿￿ our retail seNices. This has been a huge change that has been necessary lo ensure (hal retail remalns a profitable source of Incomo for the hospice. Our traditional hosplce shop remalns a thriving part of the community In Darwen supported by a warehouse operation which has evolved over the year to sell furniture and other ranges. Our boutique style offering under the Daisy's brand conUnues lo do well. Ovr Ecommerco soNice has expanded and this has been the biggest area of growth in r8lail for the whole sector durlng the lockdown pgriod and has changed the consumers shopping habits. Being adaptable and reacting quickly lo change hay been the k&y over the last 2 years and we are now looking to th8 future lo ensure our corllmunity can Still support Us IhroL¢gh whlchever method they choose, be it a lollery membor, a customer In Dur Cafe or shops, make a donallon or fundralsè in a way they are able to do so, we are extremèly gratèful and dependanl on Ihelr ongolng support. Lottery income has reduced by £20K when compared lo last year. Recruitment lo lottery membership vla our door lo door and in-slore canvassers had to remain paused due to th8 national and local restrictions because of th8 pandèmic, this has contributed to a reduction in lottery members. Canvassing resumed towards the end of tho financlal year 2021r22 and next yearfs budget aims lo bring lottery memb6rs back up lo where they were prior to Covid-19 by th8 end of March 2023. On avefage, 75¥0 of the money raised by the we8kly lottery is profil, that's over h￿Ice the amount of some other lotteries, and means that this year almost £280K has gone dlreclly lo halplng to care for patients with life limiting Ilnèsses. Of the remaining 25°h, this is made up of draw prlzos In the maln. also regulation and promotlon. Invo8llng In our lottery lo ensure we have a suslalnable Incomè for years to come. Our thanks go to our thousands of loyal, regular lottery players in our communities, as all of th8se profits help us to provide hospice services. 12- THE EAST LANCASHIRE HOSPICE TRUSTEES, ANNUAL REPORT {CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022 Flnanclal revlew (contlnued) Our sincere thanks go out to everyono who has conlributed their lime, treasure and talents lo East Lancashire Hospioe in the past, also lo those that continue io 8UPPOrt the hospice now and In the future. Income Gift Aid £52,240 1.4/. FundT?ising, Lott6ry, Donations, Shops. Merchandise and Catering lll¢ome £1,375,926 36.OQ/D InvestmGnt Incom¢ £64,182 Clit)i¢ol cOm￿ssion1tig Groups fiwding £1,132,885 29.60/¥ Legacies £304,495 8.OOA Other Grathts and inGomc £890,436 Income for th8 financlal year 8nded 31 March 2022 lolalled £3,820,164 and the graph above shows percentages for each income stream. Expenditure Fundraising, iA)ttery* Shops & Merchandise Costs £750.183 20.80/0 Piovision of Palientl Family Care and Support Costs £2,838,338 Prof¢ssional Costs £23,681 0.7/ Total gxpendltUTe for the year ended 31 March 2022 lolalled £3.612,202, and the graph above provides details of the major bTeakéowns. Ttstal èxpandlture for Ihls financial year increased by £168.692, almost 800/0 of this yeor's costs related to charltable a¢livS11gs providing specialist and supportSve care lo patlenls 8nd Ihg5r familias,. the r8malning was malnly used lo g8n8rate Income through ftjndraislng and marketing. We envisage that costs lo malnlaln quallly services will conllnue lo increasg in fulure yeaTS. In order for us lo ensure that we deliver high standards of care and SUPPDrt lo our patients and Ihglr famllles, one of the main strategic objectwes over the coming years is lo (x)nceDlrale on new or alternative ways of gen8ratsng incom& through refoousing on and investin9 in fundraising, the hospice lollery and our retail outlets. 13- THE EAST LANCASHIRE HOSPICE TRUSTEES, ANNUAL REPORT ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2022 Plans forFuture Perlods We continue lo work lo implement our strategic aims. bul obviously the changes w8 needed to make in ordér for s to 8ffecliv61y de81 with Ihe pandemic have quite rightly taken priority. How&ver w& are optimistic that along with the challon9es that the pandemic has hroughl us there have been opportunities to learn to work in different ways. We have form greater sustainabl8 relationships with other providers and with the community both in the way we provide servlces and how w8 fundraisa and thls will feed Into our strategy as WÉ bègin lo r&focus on our objectives for the comlng year. Over tha last yéar we have b88n working hard lo come out of Covld.19 and be responsive lo the changes it has made lo the ways In whlch we dellver sorvl¢es; roach out into the Community more., support our patients, their famllies, our staff and vtslunleers. Now, we need lo start to develop the next part of our strategy. taking account of structural changes at a local and reglonal level i.e. the establishment of NHS Lancashire and South Cumbria Inlegraled Care Board {which has replaced the Clinical Commissioning GroLJPS} and tha dèvelopment of Place Based Partnerships - the new structures put the patient at the centre lo provlde an integrated and seamloss experlence which Is very much the ethos of the East Lancashire Hospice. We wlll work hard Ithough there wlll be som8 uncertalntyl to m8ke suro the new system and this change is effective for all our patients. Our vision continues to be to help everyone who come5 Into contact wllh the hospice lo make the most of life. We do this by commilling to care, listen, respect and work together lo support peopl8 to live well until they die and support those affected by death. Our vision has not changed although due lo the impact of Covid-19 th8 way we de11ver seNices In the future potentially will. Thls past year has shown again what an incr8dible team we have. The team is ¢realive and insightful generating ideas on opportunities that lie ahead and we will incorporate that Into our planning. We will continue to challgnge ourselves both as p8opl& and as an organisalion lo ensure we are flexible and adaptabl8 playing key part in keeping our communities safe, Cared for and suppc>rted in the best way we can. Our overarching aim remains the same to reach and support more people within our community whilst ensurlng we remain financially viable both now and in the future. Our prloTitiès for the year ahèad will b8'.- Mainlaln East Lanc8shlre Hospice's ratlng of Oulslanding by safely delivering quality care to patients famllies and carers an appropriata rang8 and quality of integrated seNices, which are slruclured to provide accessible re8ponslve and achlgvable hollsllc cenlred care. We wlll do IhSs by bullding on our strategies for Capturing the very crpalivp, day lo day ex￿llenCe In praC￿ce and provlslon that our pali8nts experlgnce and that differenliale outstanding from gix)d. Conllnue lo work In partnership and collaboration with other provlders to achleve a shared vlslon to enabl8 tha best outCDmes for patients and thelr families within OUT communities focusing providlng Ihg Tlght care in the right place at the right lime. We will work closely wllh the Lancashlre and South Cumbrla Hospi¢es Tog8lh8r P8rtn&rship ILSCHTI to achieve greater consistency in hospice provision across our region and be better able lo artlculalelevidence where difference is required. This collaborative is another example of rea¢ling to Covld-19 and realising that sharing best practice and working toyelher was more powerful than individual hospices operating In isolation. W8 slart8d m6eling weekly when lockdown lirsl hil bul now meet monthly. We will implement the IT strategy lo ensure we are fit for purpose, maxlmlsing efficiency in our systems and enabling us to quIc￿Y evidence effectlveness are fit for purpo80'. Complete transition to electronic patient records Explore b8n8lits lo tho hospice of tools avallable lo maximise understanding of workforce plannlng and ranges In demand and depend8ncy in clinical d8partm8nls 14- THE EAST LANCASHIRE HOSPICE TRUSTEES, ANNUAL REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022 Plans for Future Periods {¢ontinued) Déliver care and support through an integrated staff and volunteer workforce of empowered people which Sncludes investing in our staff and offering quality and ffexlble opporluni11es for volunlews. Review education and training provision for staff and volunteers ané rebuild opportunllles for the provislon of education and support for external partners. Introduce and embed the new role of Head of Wellbeing, Support and Development id8nlifying organisalional PriOTilies and ensuring understanding of role across departments. Relain and bulld upon maintaining a visible profi16 of belng well known, respected and valued whilst continuing to develop new and SLislainabl8 relallonships with kay partners. Develop andlor re-design 8xisting community and support ServI￿S lo ensure we are fit for PUTpo8e workiTig with key stakgholders lo ensure appropriateness of any proposed new service developments. In light of th8 slru¢lurBI exlemal changes Ilhe inlroducliDn of Integrated Care BoaTds and Placg Based PartnBFshlps} there has been some delays but we have already held some $¢opSng m&elings internally and allo¢aled a CNS lo develop the concept of community bèds, but there have also been delays to this work because of Covid-19 pressures ar￿ plannedlunplanned absence. There is a drSv8 for some conslstan¢y Sn provision le.g. Hospice at Homel across PTovSders I the footprint bul if Blackbum wlth Darwen becomes a sèparaté 'Plac8' we may see a return to the days where very dlfferenl things were required by different authorllles. We wlll accordingly but 8UPPOrt &quality of access & provlslon. Continue to ba financially robust and prudent In all that we do to ensure that we use all our Tesources as efflclenlly as po8sible lo achieve the gTealesl impact for patients and Ihelr famllies. Conllnue wilh our programme of refurblshment to ensure our patl6nls have seamless care In a comfortable and therapaulic 8nvironmenl. Implement sustainable Income generation initiatives to work withln our changed ¢nvlronmenV communlty. Principal Rlsks and Un¢ertalnlles The Board of Trustees acknowledg8 their responslbillty In Idenllfylng major risks lo which the hospice may be exposed and there is a formal process of risk management throughout the org8nisalion The TrusleBs have examlned th¢ major slialegic and business risks that the charity faces, and confirm systems are 8stabli8hed lo enable regular reports to be produced so that the reasonable steps can be takeri lo minimise risks. Finance.. Gond co-operalk)n continues to exist with our two Cllnical Commissloning GTOUPS who support the grant funding of the hosplce. The most slgnlficant risk lo financial suslainabllily of the hospice Is the polenllal for a rapld delerioTalion in incowne, follow¢(J immedialeSy with a COTresponding reduction In Income. Therefore our reserves are planrbed lo cover the maxlmum for&s882bl6 reduction in Income over a period of 24 months. In¢ome Generolion.. Wè are always conscSous of minimising the costs of our fundraising and relalling activities lo en8ur8 we are making th8 best use of the generous donations we receive. We are conscious of the impact CDvid-19 has had and conlinues to havo on household income and in the future we know will be aTe even more pressures on tha donor pound. We work to ensure Ihal we can report back lo our donoTS on the results and impacb that their donations have on patients and thelr famlllos. All our Income ggnerallon Is managed internally by our Income Generallon 10am who are responsible for all volunteers who support our fundraising and retailing. 15- THE EAST LANCASHIRE HOSPICE TRUSTEES. ANNUAL REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022 Prln¢lpal Rlsks and Uncertalntlas (continuad) We continue lo work hard lo ensure our supporters data is secure as well as developing our systems to ensure that our supporters can choose how they would like to be conta¢led and with wh81 types of communicatlon. We are also aware that we have increasing competition as more and more charities compete for the same pots of money. Relall sales wllhln th8 high street shops remain unc8rtain and this will b8 closely monitored as our shops re- operb. Data Protecllon and Confidenliallty.. these are vital to our organisalion and we are fully aware of thB reputadonal risks posed by'social media, such BS'Facebook' and 'Twiller'. Approach to Fundraislng We are committed lo practicing the highe81 standards and we lake GaTe lo ensure all Olfr fundraising activities relect the hospice values. We are registered with the Funcjraising Regulator and as Such monitor ourselves ag8insl thèir r8cogni88d standards ènsuring that all our ftjndraising aolivity complies with the Fundraising Regulators Code of Fundralslng Standards. How we work wlth and oversee any commerclal partlclpatorslprofèsslonal fundral$or8 This is fully covered within our policias which are supported by a standard operallng procedure which Include8 a formal agreement that Is monitored wilhln our Govornan¢6 Framework. Conformatlon to Regulatlons Standards Compllance is managed by our Fundraising and Lottery Manager, and is governed through our Risk Management Governance Committee. This ensure5 that fundraSsing actSvity is fully compliant with legislalion and regulations and we have inleTnal policies which reflect thesè. We have a rSsk management policy so as lo minimise or as far as it is reasonably practicable eliminate any risks lo patients, stsff or volunl&ers, supporters and members of the publlc In relation lo our lundraising aolivity. staff identify and assess risks and put necessary prBv@ntable controls In place. Fundralslng Complalnts No fundraising complaints have been received. How Wo Protect Vulnerable Peoplo and Membors of the Publlc All our supporters are treated as Indlviduals and we have poIi¢i88 8nd systems in place for ensuring that vulnerable people are recognised and treated accordingly. Wa adh8r8 lo thè Fundralsing Regulator's Code of Practice and the Fundraising Promise We promptly actlon any requests for removal from our mailing list and dalabasas We never sell or pass on the data of any of our donors and 5UPPOrtors to any third partles under any clrcum51ances We only work with professional fundraising agencies who can demonstrate a track record of best pra¢llce in the sector and compliance with the Fundraising Regulator 16- THE EAST LANCASHIRE HOSPICE TRUSTEES. ANNUAL REPORT ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2022 Statement of Trustges. responslbllltles The Trustees (who are also dlrectors of The East Lan¢a$hire Hospice for the purposes of company law) are responsible for preparing the Trustees, Annual Report (including the Strategic Report) and Ihe financial statements in accordance wilh applicable law and Uniled Kingdom Accounting Standards {United Kingdom Generally Accepl8d Accounting Praclicel. Company law requlres the Trustees to prepare financial statements for each financtal year, whlch give a true and fair view of the slate of affairs of the charltable company and of the incomlng rgsources and applicallon of Tesouices, including the Income and expenditure. of the charitable company for that perlod. In preparlng thes& flnanclal stat8menls, the TrustaÉs ar8 requir￿ to.. select suitable accounting policies and then apply them consislenlly., observe the rnelhods and principles in the Charities SORP 2019 {FRS102)', mik8 judgemBnts and estimates that ar8 reasonable and prudent., slal? whether applicable UK accounting slandards hav6 been followed, subject to any malerlal departures disclosed and explairled in ihe financial statements., prepar8 the finanTh81 stalgmonts on the golng Goncern basis unless il is inappropriate lo presume that the charity will continue in operation. The Trustees are responsible for keeping adequate accounting records that dlsclose with reasonable accuracy al any time the financial position of the charitable company and enable them lo ensure that the financial statements ctsmply wslh the Comp3ni8s Act 2006. They ar8 also responsible for safeguarding the assets of the charitable company and hence for laklng reasonable stèps for the prevenllon and detection of frBud and othar Iiregularllles. In $0 far as the Trustees are aware. there is no relevant audit infoim81ion of whlch the charitable ¢ompany's auditor is unaware, and the Trustees have taken all Steps that they ought to h8ve lakgn lo makB themselves aware of any relevant 8udit information and to establish that the auditor is aware of that inforfflalion. Audltor A resolution proposing Ihal MHA Moore and Srnalley be re-appointed as auditor of the charity will be pul lo tho Annual General Meeting. Thls report, whlch Incorporates the Strategic ReporL was approved by the board of Trustee8 on slgned on Ils be 13 lo loJ¥ MTFGPar airman 17- THE EAST LANCASHIRE HOSPICE INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE EAST LANCASHIRE HOSPICE Opinion We have audited the financial statements of The East Lancashlre Hospice Ilhe 'par8nt charitable company'l and Ils subsidiary (thè 'group'l for the year ended 31 March 2022, which comprise Group Statement of Flnancial Activities. Company Slalemonl of Financial Aclivilies. Group Balance Sheet, Company Balance Sheet, Group Cash Flow Statement and nol8S to the financial slalemenls, including significant accounting pollcies. Th8 financial reporting framework that has been applied in Ihair preparation is applicabl8 law and United Kingdom Accounb'ng Standards, including FRS 102 'The Financial R8POrtlng Standard appllcable In the UK and Republi of Ireland. Iunlted Kingdom Generally Accepted Accounting Practice). In our opinion the financial slalements.. give a true and fair view of th8 state of the group's and parent charllable company's affalrs as al 31 March 2022, and of group's Incomlng resources and application of resources, Includlng Its Income and expendltL¢re, for th& year than ended,. have been properly prepared in accordance with Unlled Kingdom G8n8rally Accepted Accounting Practice., and have been prepared In accordance wllh the raquiremenls of th8 Companies Act 2006. Ba$l$ for oplnlon We conducted our audit In accordance with Inl8rnalEon21 Standards on Auditing {UKI {ISAs {UK}l and appllcable law. Our responsibilities under those standards are further described in the Auditor's responsibililigs for the audit of the financial statements section of our report. We are independent of the group and parent charitable company in accordance with th8 ethical requirements that are relevant lo our audit of the flnancial statements in the UK. including the FRC'S Ethical Standard, and we have ftjlfilled our other ethical responsibilities in accordance with these requirements. W8 b8lieve that the audit evidence wo h8ve obtained is suffiGienl and appropriate to provide a basis for our opinion. Concluslons relatlng to golng concern In gudiling the finanoial statements, we have conclud8d that the trustees, USB of the going concern basis of accounting in the preparallon of the financial statements is appropriate. Based on the work we have performe¢J, we have not idanlified any material uncertainties relating lo events or Conditions that, individually or collectively, may cast significant doubt on Ihe gyoup's or parent charitable company's ability lo ¢onlinue as a going concern for a period of al least twelve months from wh&n the financial slalemants are aiilhorised for issu8. Our responslbilltles and the r8sponslbSlltles of th8 trustees wllh respect lo going concern are described in the relevant seGlions of this report. Other Informatlon The other information comprises the information included in the trustees, annual report. olh8r than lh8 ffnancSal statements and our audllorfs report Ihereon. The Iruslees are responsible for the otheT information contained within the annual report. Our opinion on th8 financlal 8lalem8nts does not cover the other infomiation and, except lo tha extent olh8nNis8 explirAtly slated in our report, we do not exprgss any form of assurance concluslon theroon. Our responslblllty Is lo read the other informats'on and, in doing so. conslder whether the other Information is materially Inconsislenl wllh th8 financlal statements Dr Dur knowledge oblalned in the course of the audlt or othe￿iSe appears lo be materially misslaled. If we Identify 8u¢h material inconsistencies or apparent material misstal8m8nls, we afe required lo determine whether this gives rise lo a material mlsslalemenl in the financial ststements themselves. 11, based on the work we have performed, we con¢lude that thgre Is 2 materia misslalem8nt of this other information, we are required lo report that fact. THE EAST LANCASHIRE HOSPICE INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE EAST LANCASHIRE HOSPICE (CONTINUED} other Infomiation Icontlnuedl We have nolhlng lo report In thls regard. Oplnlon on othar matters proscribad by the Companias Act 2006 In OLtr opinion, basad on Ihg work undertakon in thè cours8 of the audit.. the information given in Ihe tTusI@es' report (incorporaling the slrale9ic report and the directors, report) for the financial year for which the financial statements are prepared is conslstent with th8 flnancial statemerils,. and the strategic report and the directors. report have been prepared in accordance with applicable legal iequlremenls. Matt¢rs on whlch we are requlred to report by exception In the light of our knowledge and undorstandlng of the group and parent charitable company ond its environment obtained the COUTse of the audit, we have not idBnlifled material misslalements in the strategic report and the directors. report. We have nothing to report in respect of the followlng matters in relation to which the Companios Act 2006 requires us to report lo you rf, in our opinion.. adequate accounting records have not been kept by lh8 parent charitable company, or returns adequate for our audit have not been received from branche8 not vl8Sted by L¢S', or the parent charitable company's financlal stat&men18 are not in agr8ement with th8 8¢¢ounling re¢ord$ and raturns., or certain disclosures of directors, remuneration spèclfiod by law are nol Made., or we have not received all the infomialion and explanations we require for our aLEdit. Respectlve responslbllltles of the trustees As explalned more fully In the trustees. responslbililles statement. the Iruslees (who are also the directors of the charitable company for the purposes of company law} are responsible for the preparation of the flnancAal stalemenls and lor being satisfied that IhBy giv8 a true and faSr view, and for such internal control as the Iruslees determine is necgssary to enable the preparallon of financ5al slat&m8nts that ar8 fraé from mal8rial mlsstal8m8nl, wh8ther due lo fraud or error. In preparlng the finan¢i81 slalèments, the Iruslees aro responsible for assessing the group's and parent charitable company's ability lo conllnu8 as a going coneem, disclosing, as applicable, mallers related lo going concern and using the going concern basis of accounting unless tho Iruslees either intend to liquidate the group or the parent charitable company or to cease operatSon$, or have no realistic altem8tlV8 bul to do so. Auditor's re¥ponsibilltlos for thg audlt of the Ilnanclal statements We have been appointed auditor under Ihg Companias Act 2006 and raport in accordance with this Act. Our objedives are to obtain reasonable assurance a1￿ul whether the financial statements as a wholg are fre8 from malgrial misslalement, whether due to fraud or error. and lo issue an alsdilorfs report that includes our opinion. Reasor5able assurance Is a high level of assurance, bul is not a guarantee that ari audit conducted in accordarbce with ISAS IUKI wlll always d61ecl a malertal misslatemenl when il exists. Misslalemenls can aTise from fraud or error and are considared material if, individually or in th8 aggregate, they could reasonably be gxp8cl8d to Influ8nce the economic deGisvJns of Usgfs taken on the basis of these financial slatemenls. 19- THE EAST LANCASHIRE HOSPICE INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF TrtE EAST IANCASHIRE HOSPICE (CONTINUED) Irregularlllos, Including fraud, 8re instances of non-compliance wllh laws and regulations. W6 design procedures in line with our responsibllilies, outlined above, to delect material misslalemenls in respect of irregularities. includin9 fraud. The 8pecrfic procedures for this engagement and the extent to which these are capable of deleGling irregularities, including fraud is d8lailed b81ow.' Enquiries wlth management about any known or suspected instances of non-compliance with laws and regulation8- Enquires with management about any known or 8U8PeCted instances of traud- Reviaw of minutes of board meetings.. Examlnatlon of lournal entriès and olhar adluslmenls lo test for appropriateness and Identlfy any instan￿S of management overrlde of controls., R8viaw of legal and professional expenditure to Idenllfy any evSdence of ongoing litsgalion or enqulrles. Because of th8 fleld In whlch the client operates we identified that employment law, health and safaty legislation, Care Quality Commlssion ICQCI compliance, and compliance with the UK Companies ABI are the areas most likèly to have a material impact on th8 financial statembnts. Bec8us8 tsf th6 inherent limitations of an audit. there is a risk that wts will not delect all irregularities, including thoselgading lo a matarial misslatemgnl in the financial statements OT non-compliance with Tegulafjon. This risk increases the more that compliance with a law or rogulalion is removed from the events and transacllons reflo¢tgd in the financial slalgments. as we will be less Ilkely lo become awara of instances of non-compliance. The rlsk Is also gr8alÈr règarding irregularities occurring due lo fraud rather than error, as fraud involves intentional concealment, forgery, colluslon, omission or misrepresenlalion. A further description of OLfr responsibilities for the audlt of the finanaal statements is located on the Flnanclal Reportlng Coun¢il's website al= www.frc.org.uklaudilorsresponsibililies. This descriptlon foms part of our auditorfs report. Llso of r•port This report is made solety tci thè cha¥ilable company's members, as a body. in accordance with the Chapter 3 of Part 16 of the Companies Act 2006. Our audll work has been undertaken so that we might slate to the charitable company's membefs those matters we are required to state to thom In an auditor's report and for no other purpose. To the fullest exlenl permitted by law, we do not accepl or assume restK>nsibility to anyona other than the charitable company and th6 chaTilable oompany's members as a body, for our audll work, for this report. or for the opinions we havg formed. Christina Wilson {Senlor Statutory Auditor} For and on behalf of MHA Moore and Smalley Chartered Accountants Statutory Audltor Richard House 9 VVind(ley Square Preston PR13HP Date.. 0611112022 -20- THE EAST LANCASHIRE HOSPICE CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING INCOME & EXPENDITURE ACCOUNTI FOR THE YEAR ENDED 31 MARCH 2022 UnTÈslrlctèd funds R8Btrlct8d funds Tot81 funds 2022 Total funds 2021 Nvte In¢omo frorn Donatlons and lega¢les.' Donallons and glfts Legacies 301.205 304,495 301,205 31W495 309,886 187.317 Charilable acllvltles.. Clinical Commissioning Groups other grants Catering ané other income 1.132,B85 490,877 79,599 1.132,885 491,627 79,599 1,120.662 510.321 42.895 750 Other tradlng activltles.. Goods for resale Fundraising events Lottory Shop 18,738 391,153 409,431 228,040 18.738 391.153 409,431 228,040 12,938 314,314 429,292 33,911 Investmants 64,182 64.182 63,980 Olherlncome 59,731 339,078 398,809 1.029,436 Total Incomo 3,480,336 339,828 3,820,164 4.054,952 Expendllure on Raising funds Charitable activities 750,183 2.517 807 750,q83 2,862,019 647,488 2,796,022 344,212 Total expendlture 3.267,990 344.212 3,612.202 3,443,510 Not Income boforo othor galns and lo$$es 212.346 14,384) 207,962 611,442 Galnllloysl on Inv8slmenls 876.646 876,646 1,833,804 Net income foT Ihe year 1,088,992 {4.3841 1,084,608 2,445,246 Transfers between funds Net movement in funds 1,088,992 14.3B4) 1.084608 2,445,246 Roconclllatlon of funds: Total funds bToughl fO￿￿8rd 15.122,718 5.957 15.128,675 12,683,429 Total funds Carried fon¥ard 16,211,710 1,573 16,213,283 15,128.675 All of the above results are derived from continuing aclivilles. All galns and Ioss8s recognised in the year are Included abova. Th8 surplus for the year for Companies Act purposes comprises the nel incoming resources lor the year nel of unreallsed profits and losses on investments and was £207,962 {2021: £611,442). -21- THE EAST LANCASHIRE HOSPICE CONSOLIDATED BALANCE SHEET AS AT 31 MARCH 2022 Unr6strl¢tsd funds R•strlct8d Total funds Total fund¥ funds 2022 2021 Noto Flxod assets Tangible fixed assets Investments 12 13 1,611.114 12,057,567 1.611,114 12.057,567 1,645,551 9,649,353 13,668.681 13.668,681 11,294,904 Current assets Stock Debtors Cash on bank deposit Cash at b&nk and in hand 13,409 405,924 2.309,078 643.060 13,409 405,924 2,309.078 644,633 4.186 468,1 $8 3.946,043 199,862 14 1,573 3.371,471 1.573 3,373,044 4,618.249 Credttors: amounts falllng due within one year 15 (828.4421 1828,4421 1784.4781 Net current assets 2,543,029 1,573 2,544,602 3,833.771 Net assets 16,211,710 1.573 16,213,283 15,128,675 Represented by: Total funds 16 16,211,710 1,573 16,213,283 15,128,675 These financial slalements were approved by the Trustees on bphalf by= .Lka..4.d4.s&(L........... MrFGParr- hairman Mrs A R Pallister- Trustee -22- THE EAST LANCASHIRE HOSPICE BALANCE SHEET AS AT 31 MARCH 2022 Unrestrlctod Rèstrlcted Total funds Total funds funds fund5 2022 2021 Note Flxed assgts Tanglble fixed assfits Inveslm8nls 12 13 1.576.346 12,057,667 1,576,346 12,OS7,687 1,645,551 9,e49.453 13,634,013 13,634.013 11,295,004 Curxent assets Stock Debtors Cash on bank d6posil Cash al bank and in hand 5,250 455,129 2.309,078 632,780 5,250 455,129 2,309,078 634,353 3,000 485,255 3.946,043 192,376 14 1,573 3,402,237 1,573 3,403,810 4,626,674 Credltors.. amounts falling due within one year 15 1796,510) 1796.510} {755,407) Net current assat5 2,605.727 1.573 2,607.300 3.871.267 Net assets 16,239.740 1,573 16.241,313 15.166.271 Repr8sonted by.. Total lunds 16.239.740 1,573 16,241.313 15,166,271 These financlal 8lalemenls were approved by the Trustees on behalf by- Mr F G Parr- Chalrman Mrs A R Pallisler- Trustee Company Registration Number= 03755216 -23- THE EAST LANCASHIRE HOSPICE CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2022 2022 2021 Nét income for the year 1,084,608 2.445,246 Adjustments for.. Investment income Gain on investments Depreciation Profit on disposal of fixed assets Increaso In stock Decrease in debtors Increase in creditors {64,182} 163,980} 1876.646} 11,833,804} 120,767 118,670 14.350} 19,2231 62,234 43,964 222,024 18,500 Net cash provlded by opgratlng aGtlvltles 361,522 902,306 Cash flows from Invesllng actlvltlos: Investment income Purchase of lan9ible fi'xed assets Recelpts from salès of fixed assets Purchase of Inveslmonls Proceeds from sal8 of invastmènts Movement in cash held as investments 64,182 (86,330) 63,980 113.544) 4.350 {521,528} 254,364 231,551 (1.945,656) 500,097 {86,0091 Not cash (used In) I provlded by Investlng a¢tlvltlos {1,553,7161 19,173 Change In cash and cash equivalents In the year 11,192,194) 921,479 Cash and cash equlvalents at the beginning of the year 4,145.905 3,224,426 Cash and cash equlvalents at the end of tha year 2,953,711 4,145,905 Analysls of cash and cash equlval¢nts Cash in hand Cash al bank 2,090 2.951.621 1,149 4,144.756 2,953,711 4,14S,905 Total group cash and cash equivalents InclLJdes a total of £1.57312021'. £1,573) relating lo reslrlcted funds. .24- THE EAST LANCASHIRE HOSPICE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 Accounting policies Basi5 of prgparation The financial slal¥ments have boen prfjpared In accordance with Accounting and Reporting by Charitl8s: Slatamgnt of Recommended Pra¢lic& applicable to chari1188 preparing their accounts in accordance with the Flnancial Reporting StandaTd applicable in the UK and Republic of Ireland issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republlc of Ireland IFRS 102), the ch￿11￿$$ Act 2011, Ihg Compan185 Act 2006 and UK Genera15y Accepted Ac¢ountSng Practtce. The financial statements have been prepared under the historical cost convention, with the exception of investments which ar8 included al market value. The East Lancashire Hospice meets the definitlon of a publlc ben8fil entity under FRS 102. Th8 StalBm8nt of Financial Activili8s {SOFAI and balanc8 sh881 consolidat8 th8 fin8na81 slalgments of the charity and Ils subsidiary und6rtaklng. The rosulls of the subsldlary ar6 consolldalod on a Iln8 by lin8 ba818. The charity has availed itself of Paragraph 411} of Schedule 1 of the Large and Medium-sized Companles and Groups (Accounts and Rgportsl Regulalions 2008 and adapted the Companies Act formats to reflect the speclal nature of the charity's aclivilies. No separate SOFA has been presented for the charity alone as permitted by Secliorb 408 of the Companies Act 2006. The parent company's surpEus for Ihe year for Companies Act purposes was £1,075,04212021.' £2,487,889). Going concern The trustees arg required to assgss whether the use of going concern is appropriate, 1.9. whether there are any maleriaS uncettalnties telal8d to events or conditions that may cast 51gnificant doubl on the abllily ol the charity lo continue as a going concern. The Trustees make Ihls assessment in respect of a period of at least one year from the date of aulhorisalion of the accounts. The ongoing impact of Covid- 19 is not considered by the trustees to be likely to create malerlal un¢ertalntles in rtslatlon to going concern. The liuslees and management have pul plans In place to manage the sltuation and monitor reserves levels. Al the dale of approving these accounts. the Iruslees have a reasonable expectation that the charity will be abl8 lo manage the situation and that it has sufficient cash resources to gnable il lo meet ils liabilllies as Ihey fall due for at least 12 months from the dale of approval. Thus the trustees conllnue to adopt the going concern bas[$ ttf accounllng In preparing the financlal statements. Company status The company is a company limltod by guarante?. Thg memb8r5 of the company are the Trustees named on page 1. In the event of the company belng wound up, the liablllty In respect of the guarantee is limited to £10 per member of the company. Fund ac¢ountlng Gèngral funds ar8 unr8stricled funds, which are avai18bl8 for use at the dis¢rglion of th& Trustees In furthEiance of the general objeclivos of Ihv Cha￿tY alld which have not been designated for other PUTposes. Des￿n￿led funds are Sel aside by tha Trustees out of L¢nrestricted general funds for specilic purposes or project8. Reslricled fLSnds are those lo be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular PUTposes. The cost of raislng and admlnislering such funds are charged against the specific fund. The alm and use of each reslrlcled fund Is sel out in th8 not8s lo th8 accounts. -25- THE EAST LANCASHIRE HOSPICE NOTES TO THE FINANCIAL STATEMENTS ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2022 AcGountlng policies {¢ontlnuod) Income Income is recognised when the charty h&s enlillemenl to the fijnds, any performance condltions attached to the Ètem{s} of income have been mel, il Ss probable that the income will be received and th8 amount Can be measured rellably. Income from govemmenl and olhor grants, whether 'capilal' grants or 'revenu8' grants, Is r8eognised when the charity has entitlement lo Ihg fvnds, any pèrformance conditions attached lo tho grants hava b88n mgt, it Is probable that the income wlll bg receSvgd and th6 amount can be measured rellably and Is not deferred. For18gacies, a￿￿tlement is taken as the earlier of the dale on which eilhgr. the charity is aware that probate has be8n granted, the estate has been finalised and nolrficalion has beèn mad3 by the exe¢ulor{sl lo the Tr¢Jst that a distribution will b8 mad8, or when a distribution is received from the 6slale. Recelpl of a legacy, in whole or in part. is only considered probablo when the amount can be measured reliabty and the ¢h#rlty has been notified of the executor's Intention to mak6 a distribution. Where legacies have been notified lo the charity, or the Charity is aware of the granting of probate, and thè criteria for income recognition have not been met, then the legacy is a treated as a contingent asset and dlsclosed rf material. Income received in advancè of an event or provision of other specific provl8lon of other specif18d s8Nice it is deferred until the criteria for income recognition are mel. Trading income is recognised al Ihe fair value of the consideration rec8w8d or reC￿Vable for goods and services providèd In the normal course of business, and is shown nel of VAT and other sales relaled taxes where applicable. Income from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyèr IusLJ8lly on dispatch of the goods). the amount ol revenue can ba measured rellably, it is probable that th& oconomlc benefits associated wlth the transaction will flow lo tho tsnuty and tha costs incurred or to be incurr8d in respect of tho transaction can be measured reliably. Lottery income is accounlBd for when received, lo the extent that the company has a right to consideration arising from the perfoTmance of its contra¢lual arrangements. Interest on fund8 held on deposll is included when receivable and the arnounl can be measured reliably by the charity- thÉs is normally upon nolificallon of Ihe Interest paid or payable by the Bank. Donatod ser￿¢$$ and facllltlas Donated professlonal servic8$ 8nd donated facilities are recognised as income when the charity has control ovBr the item, any conditions assoclated with the donated itam have been meL the r6CèiPt Df economlc benefit Irom the use by the charity of thè i18m Is probable and that economic benefll can be m6asurèd rèliabty. In accordance with the Charities SORP IFRS 102}, no amounts are Included In the financlal slalements for services donated by volunteers. On receipt. donated professlonal sétvices and donated facilf(ies are recognisBd on the basis of the value of the gift to the charity which is the amount the charity would have been willing lo pay to obt8in serVI￿S or facilities of equivalent economic benefit on th6 open market., a corresponding amount Is then recognised in expenditure In the period of receipt. Expendlture Expendlture Is recognised once thero Is a legal or ¢onstructive obligation to make a payment lo a thlrd party. il is probable that settlement will be requlred and tho amount of the obligation can be measured reliably. All expenditure is accountgd for on an accruals basis and has been classified und8r headings that aggregate a11 costs related to tha ealegory. Where costs cannot be dlreclly attributed to particular headings they have been allocated lo a¢livi1￿$ on a basis consistent with the use of the r&sourcoS. -26- THE EAST LANCASHIRE HOSPICE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022 Accountlng poll¢los {¢ontlnu•dl Expenditure (contlnuedl Detailed analyses of the expenditure, induding irrecoverable VAT where applicable, are provlded in the notès to the Bccounls. Tangible flxed assets Tangible fixed assets costing more Ihan £1,000 are capilalised and Included al cost Including any Incldental 8XP8nses of acquisition. Depreciation 1$ provlded on all tangible fixed assets al ratès cal¢ulaled lo wrilo off the eost on a slraighl 1Sne basis over their expected econom￿ lives as follows.. Short leasehold building itnprovements Fixlures, fillings and equipment over the peTlod of the lea8e over 5 years Investments Investments are inilialty recognised al their transaction value and subsequenlty measured at their market valu0 as at the balance she&l dale. The slalemenl of financial adivities inclLÉdos the nel gains and losses arlslng on revaluatlon and dl8posals throughout the yéar. All gains and loss8s ar& taken to the statement of financial aclivltles as they arlse. Reallsed galns and losses on Investments are calculal@d as Ihe differon¢¢ b¢￿e6￿ sales proceeds and Iheir opening carrylng value or their purchase value if acquired subsequent lo the flrsl day of the fftnanclal year. Unreali5ed gains 2nd losses are calculated as the difference between the fair value at the year end and their carrying value. ReallsBd and unreallsed inveslmenl galns and losses are combined in Ihe Statement of Finan¢lal Actwilies. stock Stock is included al the lower of cost and net realis8bl8 value. Items donated for r8sal8 or distribution ar8 not included in the financial statetnents until they are sold or distribuled, on the basi5 that il is considered impractical to measure the fair value of goods donated for resale, and Ihe costs of valuallon outwelgh the b@n8fil to LIS8rs of th8 accounts and tha charity of this informalk)n. Debtors Trade and olh8r debtors are recognlsed al the settl8menl amount due after any trade discount offered. Prepayments are valued at the amounl prepaid nel of any trade discounts due. Creditors Creditors are recognised where th9 charity has a present obligation resulling from a pasl event that will probably result in the transfer of funds to a third paty and the amount due to settle the O￿lgatiOn can be moasured or gslimaled reliably. Credilors are normally recognised at their settlement amount after alk)wing for any trade discounts due. Flnancial Instruments The charity only has financial assets and financial liabilities of a kind that qualify as bas￿ financial instruments. Basi¢ linancSal instruments are inilially re¢ognK%ed al transaction value and subsequenlly measured al their sett18manl value. -27- THE EAST LANCASHIRE HOSPICE NOTES TO THE FINANCIAL STATEMENTS {CONTINUEDI FOR THE YEAR ENDED 31 MARCH 2022 Accounting policies (¢ontlnuedl Operating leases Rentals applicable to operallng leases are charged to the SOFA on a straight ling basls over the term of thelease. Penslons The company operates a defined contribution pénslon scheme. The assets of the schemg ara held séparately from those of the company In an indep8ndently adminlslered fund. Conlrlbutlons payable for the year are charged in the SOFA. The company also contfibules to a mults-employer defined benefit sch8m&. A5 IhB proportion of the fL¢nd attributable to The East Lancashir8 Hospice cannot be calculated this scheme has been treated as if il was a defined contribution schgme. Taxatlon The company Is 8 registered Charity and therefore exempl from tsx811on. Govemment grants Governm8nt grants are recognised at the fair value ol the assfjt recelved or receivable when there Is reasonable assuranc8 that the grant conditions will be met and the grants will be received. A grant that specifies p8rfoTmanc8 condltlons is re¢ognised in income when the performance conditions are mel. Where a grant does not specify performance conditions il Is recognised in income when th proceeds are received or receivable. A grant received before the recognition ¢ritBria are satisfied is recognised as a liablllty. Judgoments and k$y $ources of estimation unc8rtainty In the appli¢alion of th8 charity's accciunting policies, the Trustegs are required lo make judgements, estimates and assumpllons about the Carrying amount of assets and Ilabililies that are not roadlly apparent from other sources. The estimates and a550clated assumptions arg based on hlslorlcal experl8ncg and olhor factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying as$umpllon$ arè r&viewèd on an ongoing basis. Revision8 to accounting eslimales are recognised in the period in which tho esllmate is revised where the revision affects only that poriod, or in the period of the revision and future periods where the revision affecls both Current and future periods. The Trustees do not believe that there are any estimates and assumptions which have a Significant rlsk of ¢ausing a material adjustment lo the carrylng amount of assets and liabllitles. -28- THE EAST LANCASHIRE HOSPICE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022 Income Unrestrlcted funds Restricted funds 2022 Donation$ and legacies- Donations and gifts L8gacles 301,205 304,495 301,205 304,495 Charltsble activltifrs: Clinical Commissloning Groups Other grants Catering and other income 1.132,885 490,877 79,599 1,132,885 491.627 79.599 750 Other tradlng activltles: Goods for resale Fundraising events Lottery Shop 18,738 391,153 409.431 228,040 18,73B 391,153 409,431 228,040 Invostments 64.182 64,182 Other Income (see belowj 59,731 339,078 398,809 3,480,336 339,828 3.820.164 Other unrBslricted income comprises £4,680 12021.. £228,439) Coronavlrus Job Retentlon Scheme I'CJRS'} Sneoma, £33,662 12021.. £89,580) Insuiance proceeds due lo buslness Snlerrupllon. and £21,389 {2021= £18,004) ol retail and other grants. Other reslricled income wmprises £339,07812021: £693,413) of NHSE funding. -29- THE EAST LANCASHIRE HOSPICE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022 In¢ome {contlnued) Unrestrlcted Restrlctod nds fund$ 2021 Donations and 1ggaGles.' Donations and gifts Legacl8s 309,886 t87,317 309,886 187,317 Charitable ac¢lvities.- Clinical Commissioning Gmups Olher grants Catertng and othorincom8 l. f 20,662 509.2t2 42.895 1. 120,662 510,321 42,895 1,709 other trading activities.. Goods fr)r resale Fundralslng events Loflery Shop 12,938 314.314 429,292 33,911 12.938 314,314 429,292 33,911 Investmenls 63,980 fj3,980 Otherlncome (seg b8low) 336,023 693,413 1.029.436 3,360,430 694.522 4,054,952 Exp8nditur Dlrect ¢osts Support costs (note 4) 2022 Expènditure on ralslng funds.. Goods for resale Fundraising events Lottery Shop Investm8nt management costs 5,555 291,377 96,378 278,205 29,651 1,257 30,164 17,596 6,812 321.541 113,974 278,205 29.651 701.166 49,Q17 750,183 Expendlluro on charltabla activitigs: Hospice (note 5) 2,408.292 453,727 2,86Z,019 3,109,458 502.744 3.612,202 30- THE EAST LANCASHIRE HOSPICE NOTES TO THE FINANCIAL STATEMENTS {CONTINUED) FOR THE YEAR ENDED 31 PIARCH 2022 Expenditure Icontlnuedl Dlrnct osts Support costs (note 4) 2021 Expenditure on Yalslng fund$.' Goods forr@$ale Fundraising events Lottery Shop Invoslmenl managoment costs 3.873 219,683 99,692 251,679 25,688 1,204 28.907 16,862 5,077 248,590 116,454 251,679 25.688 600,5t5 46.973 647,488 Expenditure on charitable actlvltlos.. Hospice (note 5) 2,361,215 434,807 2,796.022 2,961,730 481, 780 3,443,510 All exp8ndllure on ral8Sng fL¢nd8 was unrestrlcled In Ihe Current and previous year. Support costs 2022 2021 Salaries Motor and travel Printing and slalionery Postage Talephona Compul8r support Other staff costs Sundry expenses 433,207 70 11,431 14,398 15.954 24,999 1,689 996 420,365 222 9,474 7,092 12.329 24,486 7,309 503 502,744 481,780 31- THE EAST LANCASHIRE HOSPICE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022 Expendlture on charitabl8 actlvltles- Hospice Hospl¢e and $p8clallsed palllalive caro setvl¢es 2022 2021 Solarfes Training and recruibnent Property costs Provlsion of Care services Repairs and malntenance Motor and tfavel Sundry Depreciation Irrecoverable VAT Govemance costs {notg 61 Support costs allocated 1.908,580 23.162 94.135 108.000 90,686 9,832 27.188 117,038 6,493 23,681 453,224 1,914.510 8,668 86.185 85,823 88,250 9,879 25,437 118,670 4,878 19,397 434,325 2,862,019 2,798.022 Expenditure on Charltable activltias was £2,862.019 12021.. £2.796,0221 of which £2,517,807 was unrastricled12021-. £2,044,286) and £344.212 was restricled12021: £751,736). Governance costs 2022 2021 Audit Trustees, liability insurance Legal and professional fees Support costs alloc81gd 8,650 403 14125 503 7,226 907 10,783 482 23.681 19,397 Not Incoma 2022 2021 Slated after charging.. Depreciation Operating leases Audit fee- charity and consolidated accounts Audlt fee- subsidiary 120,767 58,584 6,650 2.000 118,670 88,995 5,550 1,675 32- THE EAST LANCASHIRE HOSPICE NOTES TO THE FINANCIAL STATEMENTS {CONTINUEDI FOR THE YEAR ENDED 31 MARCH 2022 Analysi5 of staff costs, Trust99 ramuneration and axponses, 8nd cost ol key managomont Porsonnol 2022 2021 Payroll costs were Waggs and salarlps Soclal security costs Penslon costs 2,286,981 199,730 196,617 2,221.772 189,764 1￿,488 2,683,328 2,608,024 The nurnber of omployees whose remunerallon for the year exceeded £60,000 was.. 2022 2021 £90,000 to £99,999 £100,000 to £109,999 Of the 8mployees whose remuneration exceeded £60.000, thère are two employees 12021.. tso) accruing benef¢ts under defined benefit pension schemes. Analysls of staff costs. Trustee remuneration and expenses, and cost of key management personnel (continued) The Trustees were not pald or recelved any other b8nofits from employment wllh the charlty or Sts subsidiary In tho year (2021.. £nill nelth6r were they relmbursed expenses duTing the year12021.' £nill. No charity Tfustee received payment for professional or other services supplied to the charity {2021.' £nll). Trustees made donations to the charity lolalling £43312021: £465}. The key rnanagemgnl per80nnel of the group comprise the key staff idenlrfied in the Trustees, Annual Report. The total Bmployee benefits of the key management personnel of the group were £351,157 12021.. £344,476). staff numbers The average monthly head count was 109 staff12021'. 97 staff). being 77 12021.. 67) oare staff, 19 {2021= 171 fundraising staff, and 13 {2021= 13) administration staff. 10 Related party transactlons Thero were no related party Iiansaclions durlng the current or prior year, apart from any disdosed above relating lo the Trustees. THE EAST LANCASHIRE HOSPICE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022 11 P•nslon wmmitments The charity participates in a multi-employer deflned benefit scheme, op8r8led through the National Health Servico. The assets of the scheme arè held separately by the National Health Seryic8 Superannuallon Sch8me. Conlrlbulions to the schome aro charged to the statement of fSnanclal activities as these are Incurred. This pansion scheme does not have a re21 pension fund but. as a statutory scheme, benefits are fully guaranteed by the Govemment. Contrlbulitsns from both members and employors are paid to the Exchequer, which m88t the cost of increaslng beneflts each ygar by the rate of Inllalion. This 8xlra cost is not met by contrlbullons from scheme members and erllployers. As a result of the nature of the pension scheme, there are no separately identifiable assets and Ilabilitias which can be identified as relating lo The East Lancashire Hospl¢e. Therefore, as permitted by FRSI02, Ihe scheme has been accounted for as a dafined contribution scheme. The charity also operates a stakeholder defined contribution scheme. The total contributions made during the year represent contributions to the funds of £196,617 12021: £196,4881- At the year end the charity had outstanding contributions of £41,93612021- £26,7821- 12 Tanglble flxed assets Short Flxtures, Leasehold Fittings, Building Equlpment Improve. & Motor monts vehicles Charlty Subsldlary Total Flxtures, Fittings, Equipment & Motor vehlcles Group Total Cost At 1 April 2021 Additions Dlsposals 4,218,519 3,200 508.758 44,633 4,727,277 47,833 42,264 38,497 4,769,541 86,330 At 31 March 2022 4,221.719 553,391 4,775,110 80.761 4,855,871 D¥preclatlon At 1 ApHI 2021 ChaTge for the year Eliminated on d18posals 2,662.291 70,254 419,435 46,784 3,081.726 117.038 42,264 3.729 3,123,990 120,767 At 31 March 2022 2,732,545 466.219 3.198,764 45.993 3.244,757 Net book valuo At 31 March 2022 1.489,174 87.172 1.576,346 34.768 1.611,114 At 31 March 2021 1,556,228 89,323 1.645.551 1,645,551 Total group fixed ass81s Include a total of tnil12021- £4.3841 relating lo reslricled funds. Al the year end there were capital commitments of £30,000 (2021.. £nil). 34- THE EAST LANCASHIRE HOSPICE NOTES TO THE FINANCIAL STATEMENTS {CONTINUEDI FOR THE YEAR ENDED 31 MARCH 2022 13 Fixed asset investments Group 2022 Charify 2022 2021 2021 Investments in subsldiary companles OlheT Snvestmenls 100 9,649.353 12.057.567 100 9,649,353 12,057,567 12,057.567 9,649,353 12,057,667 9,649,453 All fixed asset investments relate to unreslr5oted funds Sn both 2022 and 2021. Investments In subsSdiary companles The charlty owr)s the whole of the issued share capital of The East Lancashire Hosplce Shops Llmiled (company number 046607031, whieh is incorporated in England and Wales. The subsldiary is used for non-primary purpose Irading, namely the sale of donated goods through several shops. All actwilies havè bean consolid8led on a line by line basis. In the opinlon of the Trustees, the investment In the charlvs subsldlary und8rtaklng Is worth at least the amount al whlch 1115 Staled in the balance sheet of £100. A summary of the results for the trading company as show below.. 2022 2021 Turnover- shop sal8S CDs1 of sales 228.040 {24,757) 33.911 {5,077) Gross proflt 203283 28,834 Adminislralive expenses Other opeTaling incam8 {253.4481 59,731 1246,6021 175,125 Proflt I Ilo$s) for tho yoar 9,566 142.643) Amounts gift aided lo char¢ly RetAlned proflt I (loss) for the year 9,566 142,6431 Retalned earnlngs brought forward 137.596) 5.047 Retalned eamlngs carrled forward 128.0301 {37,5961 Tho aggregate of the assets, liabilities and funds of The East Lancashire Hosplce Shops Limited was.. Fixed assets Current assets Current li8bilili8s 34,768 87,447 (150,145) 121.462 1158,9581 Funds 127,9301 (37.4961 THE EAST LANCASHIRE HOSPICE NOTES TO THE FINAMCIAL STATEMENTS ICONTINUEDI FOR THEYEAR ENDED 31 MARCH 2022 Fixed a8S•t Invostmants {continuedl other investments Group and charily 2022 2021 Markgt value A8 at 1 April 2021 Additions Disposals M¢>vemenl in cash deposits held as invèstmonts Chang& in markal value 9,649.353 1.945,656 (500,0971 86,009 876,648 7,779.936 521,528 1254,3641 1231,5511 1.833,804 AS at 31 March 2022 12,057,567 9,649,353 Llsted investments are represented by: Group and Charity 2022 2021 Fixety interest Equities Ailemallves Property Invtsslment trust and unit trust Cash 647,611 1,740,80S 548.663 115,720 8,830,491 174.277 765,648 1,864,131 324,251 79,200 6,527.855 88.268 12.057.567 9,649,353 14 Debtors GTOUP 2022 Charlty 2022 2021 2021 Trade debtors Prepayments and accrued income Amounts owed by group undertakings VAT recoverable 70.424 284.025 43,645 313,616 69.823 221,429 118.213 45,664 38.424 208,860 129,887 108.084 51,475 110,897 405,924 468,158 455,129 485,255 All debtors rtslate to un￿StriCted funds In both 2022 and 2021. 36- THE EAST LANCASHIRE HOSPICE NOTES TO THE FINANCIAL STATEMENTS ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2022 Creditors: amounts falling du8 wlthln one yaar Group 2022 Charlty 2022 2021 2021 Lottery p8yments in advance Accruals and deferred Income Trade creditors Other taxes and soclal securlty 47,793 632,060 101,758 46.831 45,899 611.742 75,082 51,755 47.793 627,293 74.S93 46.831 45,899 592,531 65,222 59,755 828,442 784,478 796.510 755,407 All creditors relate lo unreslrfcled funds in both 2022 and 2021. 16 Funds Restricted funds Brought forwaTd at 31 March 2021 Income EKpendlture Gèlns, losses and transfar$ CaTried forward at 31 March 2022 Day Care Unil Building Support & W811b8ing NHSE Funding Co-op Community Fund Yorkshire Building Society Charitable Foundation 4,384 464 {4,384) 464 339.078 1339.078) 1,109 1,109 750 {7501 5.957 339.828 1344.212} 1,573 Unrestrlcted lunds Brought forward at 31 March 2021 Incomè ExpendSturo Galn$, losses and transfers Carrled foThvard at 31 March 2022 Unreslriclad fund Non-charilable trading 15.160,314 (37,5961 3,192,565 287,771 12,989,785} 278.205) 876,646 16.239.740 (28,0301 15,122,718 3,480,336 {3,267,990) 876,646 16,211.710 37- THE EAST LANCASHIRE HOSPICE NOTES TO THE FINANCIAL STATEMENTS {CONTINUEDI FOR THE YEAR ENDED 31 MARCH 2022 16 Funds- prfor yoar Restricted funds Brought fotward at 31 March 2020 Income Expendlture Galns, Caffied losses and forward at transfers 31 March 2021 Dgy C8ie Unit Building Support & Wellheing ISSA Foundgllon NHSE Fundlng Co-op Community Fund 51,393 464 11,314 (47,009) 4.384 464 (11,314) (693,413) 693,413 1, 109 1, 109 63,171 694,522 (751,736J 5,957 Unrestrlcted funds Brought fotrward at 31 March 2020 Income Exp8ndlturn Galns. Carrlgd losses and forwa￿ at transfors 31 March 2021 Unrestricled fund Non-charitgble trading 12,6t5,211 5,047 3,151,394 209,036 (2,440,095) (251.679 1,833,804 75.160.314 (37,596) 12.620,258 3.360,430 (2,691,774J 1,833,804 15, 122, 718 -38. THE EAST LANCASHIRE HOSPICE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022 16 Funds (continued> Purposé of thè rÈstrlctèd funds: The Day Care Vnll bullding fund was for the building of the Day Care Unil and largely relotes lo granls from the Community Fund (National Lottery Charities Board) towards the capital costs. The fund has been reduced by the related depreciallon chargo, and IhB balance Is now £nil 8131 March 2022. The Support & Wellbelng fund 18 a patient donation for patient activities. This remalns unspent a131 March 2022. The NHSE awarded funding lo allow Ihe hospico to make availablo bed capacity and community support from December 2021 to March 2022 to provide support lo people with complex needs in the context of th8 Covid-19 slluallon. This funding was fully spent in the year. The Co-op Local Communily Fund was lunding received for the cholr. Thls remalns unspent at 31 MÈrch 2022. The Yorkshlre Buildlng SoclÈty Charltsble Foundallon Fund was funding received for tha purchase of a fogging machine. This was fully spent in the year. 17 Oppratlng lease commitments At 31 March 2022 the group had future rninimum lease payments under non-¢ancellable operating leases as sel out below.. Land and bulldlngs 2022 2021 Amounts due wllhSn one year Amounts due between one and five years Awnounls due after fwe years 32.167 12.375 47,844 38,875 44,542 86,719 -39-