Company Reglstratlon No.. 03755216 Charily No.. 1075653 THE EAST LANCASHIRE HOSPICE (A reglstered charity and company limited by guaranteg) Annual Report of the Trustees and Financial Statements For The Year Ended 31 March 2023 (fy mha MOORE & SMALLEY THE EAST LANCASHIRE HOSPICE CONTENTS Page Reference and adminislralive information Trustees, annual report Independent auditor's report Consolidated slalement of financial activities 21 Consolidated balance sheet 22 Balance sheet 23 Consolidated cash flow slalemenl 24 Notes to the financial slalemenls 25 THE EAST LANCASHIRE HOSPICE REFERENCE AND ADMINISTRATIVE INFORMATION Trust&es MrFGParr MrT Kennedy Mrs A R Pallisler Mr R J Sullieff Mr Y Jan Virmani Mrs G M Le8Cy Mr l M Willock Mr D McDonough Ms L Robinson lappoinled 20 June 20231 Mr l Haleji (appointed 20 JLJne 20231 Mr S Almond lappoinled 20 June 2023} Mr P Hinnigan (appointed 20 June 20231 (Chairman) (Vice Chairman) ISecrÉlaryl Key Management Personnel (at 31 March 2023).. Chief Executlve Miss H Barrell lappoinled 16 May 20221 Dr K Hogarth Mrs C Evans Medical Director Clinical SgNices Director Income Gèneration Director Mrs N Hanna lappoinled 19 September 2022) Company Number Reglslefgd charity numbor Tax exemptlon numb8r Registered offlGe 3755216 1075653 XR 32869 The East Lancashire Hospice Park Lee Road Blackburn BB2 3NY Tel.. 01254 287000 www.easllancshospice.org.uk Auditor MHA Moore and Smalley Chtsrteied Accounlan18 & Slalulory Audiloi Richard House Winckley Squaie Preston PR1 3HP THE EAST LANCASHIRE HOSPICE TRUSTEES, ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2023 This is our 38th year operating as East Lancashire Hospice and is our 15th year of being an independertrt charity. The Truslees, who are also directors of the charity lor the purposes of Ihe Companies Act, 8ubmil their annual report and the audited financia1 slalemenls for the year ending 31 March 2023, which are also propared lo meet the fequiremenls for 8 directors. report and accounts lor Companies Act purposes. The financial slalemenls have been prepared in accordance with the accounting polici8s sel out in notes lo the accounts and comply with the charity's governing document, the Charities Act 2011 and Accounting and Reporting by Charities." Slalemenl of Recommended Pra¢li¢e 2ppli¢able lo charilies preparin9 their accounts in ac¢ord8nce with the Financial Reporting Sl8ndard 8pplicable in the UK and Republic ol Ireland published in October 2019. Slructure. Governance and Management Govèrnlng Document Tlie charity is a charitable company limited by 9uaranlee and nol having a share caprt81 is exempl from Ihe requirement lo use Ihe word 'limiled' as part of ils name. 11 is governed by a memorandum and articles of asso¢ialion and was incorporated or) 20 April 1999 to lake over, from 1 July 1999, the aclivtties of Thè East Lan¢$shire Hospice Fund, an unincorporated asso¢ialion which was originally founded in 1981. The charity was entered in the Central Register ol Charities with effect from 24 May 1999 and acceptèd by HM Revenue & Customs as a charity for lax purpDses. Recruitment and Appointment of Trustees Al 31 March 2023 the Board of East Lanc8shire Hospice was made up 018 Iruslees who are 811 registered volunteers. Recmilmenl is undertaken via a formal, inclusive process 8nd positions are advertised in a largeled way in order lo reach a specialist audience lo maximise the secuiing ol appropriate skills and diversity mix. Polenlial candidates are invited lo apply by a CV, and a lomial process lakes place including interview wilh a panel ol Trustees and the CEO. Trustees are appointed for a period ol three years and may be re-elected after this period lor a further three. Trustee induction consists of an induction pack, this incorpoiales key information on the charity, and the responsibilities ol being a Trustee. The induction process provides opportunities lo meet staff and Heads of Department in order lo gain a grealef understanding ol the hospice. Trustees are 81s0 supported lo allend appropriate exletnal Iiaining events that will assist them with their role. They also undertake Diganisalional manrlalory training as appropriate to their role. Organlyational 11 is lair lo say that Covid.19 still affected us within the hospice and in the community during the year However the changes lo the way we deliver our services Ibioughl on by Covid-191 have reillained with us and truly begun a lasting Change (for the benefit ol our patients and the SUPFX)rt we provide lo the NHS and other providers). Wè know that 8$ WÉ slowly return lo 'normal' there will be changes and consequences we are yel to fully realise bul we are positive about that and embrace the ¢hallenge. Al the same lime the slruclLITe of Clinical Commissioning groups changed lo Inlegraled Care B08rds IICBS) to Iiansform Olsr ways ol working lo a system wide, collaborative process which will ultimately benefit and simplify a¢¢ess lo he8llh¢ar& for the local population. This change is still in progress. Whilst we have fell that everything around us has Changed some things have remained conslanl. East Lancashire Hospicé has ¢onlinLJed ID provide vital car6 and support lo people living with a terminal illness and beieavemenl in Blackburn, Darwen, Hyndbufn and the Ribble Valley. We have continued lo do this 365 days a year over 24 ho(Jis 7 days a week as we have always done. Supporting p8lienls in their homes ¢onliniies lo be 8 priority for LJS we continue lo innovate how and what we do listening lo the feedback of palienls, their families and carers. This provisiDn in the community continues lo glow in importance. Al the same lime our IPU continues lo form an important part ol our service for those patients who need it. The most noticeable change we have seen here is the later presentation of patients with mor8 complex nèeds. THE EAST LANCASHIRE HOSPICE TRUSTEES. ANNUAL REPORT ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2023 Organlsatlonal Icontlnuèdl Over the year we have worked on a new 3 year strategy. part ol which looks al service provision and innovation where we not only work lo'relLJrn lo noimal. bul plan for service extension and responcl lo market trends with new services as well as enhancing existing ones. Such vision and Tapid delivery of new and changed services has laken bravery. decisiveness and rèal commitment by all our staff in all of the parts of the hospice and we would want lo publicly acknowledge and applaud a11 our staff and volunteers who continue lo make things happen. Wilhoul the support services we have Oilf clinical teams would not be able lo do the work they do so thank you all. The Board of Trustees have continued lo meel on a monthly basis lo direct and manage the gDvernance ol the hospice. The Trustees have ullimale responsibility for selling the strategic direction of the hospice and their role is lo ensuie that the hospice is linancialty viable, well run and that il meets the needs for whi¢h il was sel up. A CEO is appointed by the board lo operationally manage the hospice supported by a Senior Leadership Team with predetermined levels ol authority. Mallers such as policy, strategy and bud9els are prepared for ¢onsideralion 8nd approval by the trustees who monitor the implemenlalion of Ihese plans, Heads of Department afe responsible lo the appiopriale Senior Leadership Diieclors. who are responsible to the CEO who is in luin responsible lo the Board of Trustees, We conlinlied lo have four governance commillees covering all aspeclg of the organisalion.. Clinical Governance Committ@@ Finance Governance Committee Risk G0Veman￿ Committee Corporale Governance Committee OLJr governance arrangements are being reviewed lo make sure Ihey reflect the needs ol the hospice. The membership consists ol elected members ol Ihe Board ol Tru51ees, Senior Leadership Team, and Heads of Department who have been selected for their particular skills, experience and knowledge. Commillees meet al least once per quarter and report into the Corporate Governance Commillee which in lurn reports into the main board meeting on a quarterly basis. The Senior Leadership Team. Head of Finance and Head of Quglity and Governance present quarterly compreherlsive written reports lo the Board of Truslees. Th8 ieport covers key risk issues which are inclusive of all aspects ol governance providin9 both qualilalive and quanlilalive dala. This yeai because of slruclural flux al the ICB we have mel once lo discus8 quality and performance as detailed in the SLT quarterly board report referred lo. These reports are automatically submilled lo the ICB Quality and Performance team after our Board has approved them. Any ad hoc queries aré dealt with if and as they arise. Related Partles and Cooperatlon with Other Organlsations The benefits of working collaboTalively with olhfrr partners has become embedded in the way we Work. We have continued lo work to maintain strong relationships and partnerships with local organisalions and our local community foi the benefit ol our patients and families. We believts th81 the hospice belongs lo our community and th81 we exist in order lo be able to provide a service which ieally makes a difference lo the quality of the lives of patients and Iheii families. We believe Ihal this collaborative, joined up way of working, helps us lo make (hal positive difference. One of the key challenges this year hgs been lo support our NHS colleagues lo redu￿ the pressures Ihey face partiCLJlarly in Winter and in particular lo woik lo keep as many people oul of hospital and al home which. when il's appropriate, we know is whère palienls often prefer lo be. K8y members ol staff continued lo be involved in local, regional and national network groups, which supported the sharing of best practice. bgn¢h marking and mutual siipport in last year's ever-changing tandscape. We continue lo have inlegraled working arrangem&nls which has helped and supported patients and their lamilies by enabling them to receive the right care al the right lime and in th8 right place. THE EAST LANCASHIRE HOSPICE TRUSTEES, ANNUAL REPORT ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2023 Pay Policy for Staff All Truslees give their lime freely and Trustees received no remuneration in the year 2nd nor have they ieGeived any payment lor expenses throughout the year. The Trustees consider the Senior Leadership Team lo be the key managemenl personnel of the ¢harily, in charge ol directing, conlfollin9, wnning and operating the charity on 8 day-104ay basis. All employed staff ale iemuneraled according lo the responsibilities ol Iheirjob description. Job descriptions are reviewed on an annual basis as part of Ihe Personal Development Review IPDRI proce5S. Benchmarks are used nationally. regionally and locally. All staff including the CEO and Senior Leadership Team receive the sarlle annual cost ol living pay increases and other benefits of employment that are agreed annually by the Board of Twslees. During 2022, after ¢onsullalion with staff, we agreed lo review the pay and benefils lor all staff and formed a Task and Finish group lo carry out this broad review. The various sub groups have mel as freqiienlly as needed since their inception in January 2023 and the feedback is due in September 2023. We recogni9e (hal pay is just one element of the benefits package. Publlc Bènefit statement The Tiuslees have complied with the Charitiès Act lo havo due regard lo the public benefit guidance published by the Charity Commission. The Truslees believe that the Charity provides a public benefit as Ils principal aclivtLy is lo enhance the quality ol lifè for inclividuals with a life limiting illness. The aim being lo provide specialist, supportive and end of life palliative care lo any adult In the communities we serve, wilhoul discrimination, in the place ol their choice, and lo oflèr support lo them, their relatives, carers and friends. This is provided in vafiOUS sellings incliiding.. 11 in the hospice Ilnpalienls, Specialist ancl Supportive Community oulpalienls and a huge variety of support and wsllbeing services) and 21 In patients own homes (Specialist Clinical Nursès and Hospice al Homel. We also piovido specialist. generalist and end of life palliative care education within the organisalion and lo the wider commuriity. Our Staff and Volunteers The hospice is commilled to an equal opportun(ties approach in everything il does. This means that we seek to ensure that ariyone conne¢led lo us. from patients and families through lo donors, supporters, volunteers and staff are treated fairly, appropriately and with dignity and respect. From our day-lo-day operalional management to our strategic decision-making, we ¢onsid¥r how we work may affect different groups and aclwely eliminate or reduce negalive impact and discrimination. All our staff from all departm8nls ol thè organisalion have had lo work flexibly and creatively adapting lo new and different ways of working which we intend lo continue. Every single one of our staff and volunteers played a vital role in helping patients. families and each other throughout this year. Over the yeai we have welcomed more volLJnleers back as well as welcoming new faces. Volunteers are a truly special group ol people who we rely on across the hospice and out in retail. We thank Ih&m for their ongoing support and look fonvard lo growing thèir numbers which fell after the pandemic. We will be developing a strategy lo lay down a roadmap lor how we will do this and the role Ihal our volunteèrs can play as the hospice changes. We conlinue lo be proactive in gaining feedback from our staff and volunteers and we Gompleled a slafl survey which will be repealed annually. We also ask our external stakeholders for their views as we constantly slfive lo engage with as wide a range of people 88 possible in all aspects ol the hDspice, lo enable us to develop in a way which builds our organisalion's learning, undefslanding, trust and responsiveness. We have quarterly Tea N Toast sessions for regular staff Lipolales and feedback that will enable us lo tjndersland how staff aTe feeling about thèir work, their siipport and envifonmenl and further develop the culture of engagement and collaboration Ihal makes such a difference lo our team and ultimately Iho services we provide. THE EAST LANCASHIRE HOSPICE TRUSTEES. ANNUAL REPORT ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2023 Our Staff and Volunteers (continued) The results of the consullalions we started in 2022 all fed into the development of our new 3 year slralegy and informed one ol our strategic priorities which is about staff wellbeing, support and development in ils broadest sense. Oblectlves and Activities The piincipal objectives of the charity as sel out in Ihe Memorandum and Articles of Association are lo piovid& specialist, supportive and end of life care for adults who are suffering fron) a life limiting illness lo the Communities we serve in B13ckburn, Darwen, Hyndbum and the Ribble Valley. We also aim lo collaborate and foim partnerships with olher providers of palliative caie. diffeTenl faith groups, cullural communities as well As diverse organisalions that support patients and their families livin9 with a lile limiting illness and make our specialisl resources available lo them. Quality of care for palienls and their families is al Ihe heart of what we do al East Lancashire Hospice and our charitable activities are focused on offering free care and support lo patients and their families from the momènt they are informed that their illness is incurable regaidless of diagnosis. Referrals are accepted from g variely of health care professionals and patients can self.reler lo many of our services with places allocated ac¢ording lo need. The a¢livilies supporting these objectives are A ten-bedded Inpatlent Unit wherè specialist palliative care is delivered by a multi-disciplinary team A community team, which consists of Clinical Nurs8 Specialisls who work wilh General Praclilioners and other Health Care Professionals, and a Hogpice al Home team who stjpport Ihg provision of palliative and end of lifè care in people's own homes. Support and Wellbeing Services consisting ol Creative and Supportive Therapy CounsBlling and Bereavement Support Family Support Complementary Thèrapies Physiolherapy Outpatlent cllnlcs In addition lo face lo face consullalions al the hospice, our SUPPDrt and wellbèing services are provided in our clinic lacililies or via phonelvideo calls lo mèet the individual needs ol our patients We work in collaboration wilh the motor neurone specialist team lo host oulpalienl clinics lor thos& 8ffecled by the disease in addition lo hosting p811ialwe care consultant oulpalienl clinics Our seNices help support people with a life limitin9 illness from the first d2ys of iincertainty through lo the last days of life, dealh and bereavement. These services are offered irrespective of b8ckground or belief and we are commilled lo offer care based on need not diagnosis. We recognise th8 incr&asing need for high quality palliative care for people living with multiple conditions not just a single diagnosis such as cancer. We have a multi-disciplinary tèam covering all ?specls of the work we do. Our philosophy of care is that we care lor (he whole person, and their family, friends and cafers. The wishes of each patient and their family are earelully assessed with ielevanl members of the multidisciplinary team so that they can be supported in the way they want, be il physically, socially, ernolionally, psychologically and lor spiritually. We respect each patient's priorities and strive lo enable them lo achieve their personal goals. THE EAST LANCASHIRE HOSPICE TRUSTEES, ANNUAL REPORT ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2023 Objecllves and Activities {conlinuèdl Our clinical teams are supported by a range ol support services including facilities, domestic, catering, adminislialion, finance and volunteers. which all play a key role in ensuring that patients and their families have the best possible care. The Care Qualily Commission has a recoid of Dur a¢livilies and monitors us Ihiough information supplied dire¢lly lo them in the slalulory nolifi¢alions we make, it) writing about events and changes lo setvice. The Care Quality Commission ICQCI inspe¢ls the hospice and their report is posted on the commissions, websile and can be accessed via a link on our webstte, There is a programme of planned Teviews, which lake pl8ce on unannounced visits. On our last inspection we were classed as Oulslanding in Caring, Effective and Responsive and received an overall rating ol Oulslanding lor the organisallon. The CQC is in the process of changing ils assessment framework and we now have regular monitoring calls with thèm lo satisfy Ihem with our compliance. quality and safely. We have a compreh6nsive annual audit programme, lo ensure compliance wilh 18gislalion and best practice eoverin9 all aspects ol the organisalion including clinical and non-clinical 8clivilies. These are implemented 8nd monitored through our Governance structure lo provide the Tfuslees with assurances that we are compliant with our legal and slalulory obligations. The hospice continu85 to play a part in Ihe wider healthcare agenda through Palliative Care Locality Groups within Easl L8nc?shire and through the wider Network groups wilhill Lancashire and South Cumbria. Together with other hospices in the region w& ar& a part ol LanGashire and South Cumbria Hospices Together Partnership ILSCHTI which is another way of making sure hospi¢e end of life arsd palliative care voices are heard. strategic report Achievements and Performance We are proud lo continue lo have a CQC rating ol oulslanding and despite this reassuiing resull we continue lo review and act upon feedback as well as reviewing the effeclivene8s and efficiencies of what we We have continued lo support our patients lo make the most ol life through a flexible approach lo meeting need and ensuring a focus on the Ihinos that maller lo our patients and those close lo them. This has included patient led-¥clivilies and groups in our Creative and Support Therapy Deparimenl and individualised 'weddings' and 'dale ni9hls' for patients admilled lo oiir Inpalienl Unil, The launch of oui bathing service has proved lo bè very successful and much appreciated by those on our caseloads who are no longer able lo independently access balhing's Iherapeulic benefits. This has provided a baseline for further development of the s?tvice lo be continued. In Ihe laller part of the year an emphasis on 8xlending our reach within the communities we serve has resulted in significant engagement wilh providers of those who do not generally access hospice services inclLJding lor example Maundy Rélief, HMLOS and T.H.O.M.A.S. Engagement with thèse groups ar)d Heallhwalch has significantly increased opportunities lo raise awareness ol hospice services including those provided outside of the hospice wa11s and Ihal otji setvices are available lo those with a non-cancer diagnosis for example dementia. Following th& reslriclwe Covid-19 period we have reintroduced oiir much valued Complementary Therapy Service with the team working ID extend the range of provision for those who can benefit Irom Iherapeulic inl8rv&nlions. We continue lo have an honest and open rela110nship with our Inlegraled Ca¥e Board with a joint desire lo enable everyone lo access good end of life care proviaion. THE EAST LANCASHIRE HOSPICE TRUSTEES, ANNUAL REPORT ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2023 Achievements and Performance {continu8d) Throughoul the system changes we worked closely and ¢ollaboralively with thè team al the ICB lo ensure future services are designed lo meet the needs of the10¢81 POPLilalion. We are ple8sed lo report that Ihe liial we implemented last year lor a single pginl ol access lo enable responsive support for those in our eommunty has been successful and extended (we worked collaboratively with lead commissioners, partner 8gencies including Marie Curie, domiciliary agencies, dis1r￿1 nuising sèrvices and Ihe continuing health care leaml. We worked wrth our commissioners and 2 neighbouring hospices lo provide system wide support lo alleviate Winler P￿sSUre$ particularly in our hospitals Iholigh an importanl aspect of this work w8s the education of other providers, The Winter Pressures project was the first System wide project in Ihe new heatthcale slrtjclure. 11 marked a new approach lo collabor81ion and consistency of delivery. The need lor a focus on staff SUPPOTt and wellbeirlg has become increasingly evident. The impact on resilience and burnout cannot be undereslimaled. Our people ale our most importanl asset and we have created a role for 8 Head of Wellbeing, Support and Development initially focussed on staff needs bul with the intention of extending the support lo our volunteers. We also recognised the need lo keep developing our clinical skills and lo offer career development pathways so wè have invested in 8 Clinical Practice Development Facililalor. This year we began lo dev81op our next three year strategy which came into effeel from April 2023. A key part of that strategy was lo piolecl our future financial suslainabilily starting from th& point of considerable external change coupled with growing demand lor our services and the delerminalion lo build on what we do and bè fil for the future. From our extensive stakeholder engagement coupled wilh market intelligence and leedback from our own staff, we are focussing in Ihe next three years on suslainabilily Ilinancial and environmenlall, our people, our care service development and our digital oplimisalion. There will be more detail in the 2023124 accounts and copies of the strategy are available on request. We have successfiilSy navigated the new healthcare world so far and are represented on key ¢ommillees and groups both regionally and loc3lly. The hospice rem8ins part of the Lancashire South Cumbria Hospices Together ILSCHT) collaborative which adds lo the regional seclorfs voice and the impact we all make. Mindful of the privacy and dignity of our patients and following exlensive refuibishmenl ol our Calo Retreat, we decided lo erect some relraclable screens lo create privacy as patients head lo our In Palienl Unil. This was completed this year and we have added some signage lo help visitors. We conliniied lo support our NHS colleagues stepping up our seNices lo support caring for patients in the community lo support avoid8ble admissions lo hospitals, We also provided thorough support wilh in-reach assessment lo facilitale timely Iiansfer Irom the acute hospital selling lo hospice caits. We were Ihankerl by the k)cal hospital foi our responsiveness in December 2022. We invested signilicanlly in our team both in how lo build iesilience ancl deal wrth stress as well as upskilling both professionally and personally. We agreed lo work with CVS lo deliver a European funded Ir2ining programme for all staff which in¢ludes leadership, mentoring and coaching as well as basic project m8n8gemenl skills. The training conlenl was agreed in 2022123 and is being delivered in 2023124. We nominated one of our volunteers for a Community Award and won. We also won 2 awards with Universtty of Central Lancs IUCLANI loi our approach lo medical sludenl placements. THE EAST LANCASHIRE HOSPICE TRUSTEES, ANNUAL REPORT ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2023 Achlevements and Performance (continued) As part of our approach lo person cenlred care we always go the extra mile lo try lo accommodate patient's wishes. This year we celebrated a wedding al the hospice and created a special dinner dale for two in Calé Retreat. Excallenl manag8menl of infè¢lion control continued d8spile thè sev8rily of Ihe pandemic subsiding. An internal working group has been formed lo spe¢ifi¢ally deal with infection ¢onlcol issues ancl maintain best practice chaired by the Infection Control Le8d. We maintainecl the telephone Absence Line introduced at the start ol the pandemic Ihou9h il is being reviewed 81 the moment. All staff fell safe as clear rules were slated al the oulsel ol the pandemic. The Ips bec8mE 'guidance' and our slaff moved to Ilsk assessing situations and not relying on externally sel rules. This caused some eonfusion initially and was burdensome for many. However our team rose lo the challenge 2nd ensured that we were a￿vaYS sale for our patients, their families and Olir visitors. One of the learnings from the pandemic was the need lo be flexible about how and where we work. This flexibility is something we will relain. In addition we reviewed our digital and IT nèeds lo make sure we are fil lor purpose and we can maximise efficiency. In line with our strategy we identified the need lo create a new role in IT seTvices lo help us. The role was recruited lo in June 2023. We mapped out the move lo M365 and went out lo tender foi a man8ged service piovider IMSPI which was a success. The MSP has been working alongside us lo move our email and liles lo M365. This piojecl is on our Risk Register and will slay there whilst the project is live. We siiccesslully moved lo eleclronic care records on the IPU and with our medical leam. This further enhances paliènl safety with us. Bul il also allows Ihe sharing ol records across the region - giving r&al-lime dale lo other healthcare providers using the EMIS electronic patient recoid. We started the successful migration of our HR records and training lo an electronic system called 81ue Stream. We successfully started the migration ol incidenl reporting lo Vantage storing Quality Developmenl Reports and Audits on the same system so that we can easily map performance and identify trends. The introduction of new systems and ways ol working throughout thè year marks a significant achievement especially coming out ol Ihp demands of the pandemic. We also Iransrtioned Dur m2nagemenl team. ELH had been under the leadership ol the outgoing CEO for over 20 years. 2022123 saw the arrival of a new CEO and Income Generation Director bill (Sespile the ¢hange internally and externally ELH has continued lo deliver ils setvices and develop new ways of working as detailed in ils 3 ye8r slialegy 2023- 2026. This smooth transition was underpinned L>y slrono Clinical and medical leadership and the commitment of the staff and volunteers at the hospice lo succeed for the palienls. We have collaboraled and developed a new three year plan for Ir>come Geneialion Ihal builds on our existing success, bul looks lo implement a more diversified and sustainable income base. We have recruited a Corporate Fundraiser lo develop and grow the support we receive from businesses in the communily. This has been 8 shining example c>f fundraising success over the past few years which has been recognised with dedicated resource. THE EAST LANCASHIRE HOSPICE TRUSTEES, ANNUAL REPORT {CONTINUEDI FOR THE YEAR ENDED 31 MARCH 2023 Resetves Pollcy and Going Concern The hospice reserves policy Is lo maintain a minimum of 24 months iunning costs. The Board of Trustees review the reseNes policy of the chaiity annually. The Finance Covernance Commillee monilors and réviews reserves reporting lo boafd on a quarterly basis. Reserves and investments are reviewe(S each quartèr in light of the major challenges facing Ihe organisalion in terms ol rising costs, patient expeclalions, and the challenges that we continue lo face as a consequence of the cost ol living crisis. Reserves and investment reviews encompass all income and expenditure stream5, the eed lo match variable income with fixed commitments and longer-lerm plans for a sustainable future. When deficils occur, we rely on our reserves lo enable us lo continue lo provide hospice services for our patients and Iheii families. A prudent approach is taken by the Board ol Trustees which is based on our accounts as they currently sland along with a potential unstable fulure financial posilton. Tol81 funds have significantly dropped in ieal terms with inflation averaging 10 /0 over the past year and due to ieceiving no uplift in our grant funding since 2D21, this provides us wilh minimal security in terms ol long-lerm financial planning. The general policy remains one ol a cautious approach in the event ol a drop in grant funding andlor volunlary income. Total ieserves as al 31 March 2023 were £15,297,470 12022." £16.213.2831. of which £15.294,352 is unreslricled funds and £3,118 is ieslricled funds. After the deduction from lolal funds ol resliicled funds, designated funds and tangible fixed assets the lolal reserves are £13,770,021. This reseNes value Currently represents no mole than 33 months of budg6lÈd expendtture, which mèets the reserves policy. Any unreslri¢led general funds, surplus to the minimum reserves policy, will be used lo saleguard future financial sustainability and lo finance short and long term development plans, some ol which will require significant levels of funding. Developmenls planned for the upcoming years include the following., Regularly review communrty services lo meet the changing needs of patients Replacements lo patient equipment and enhancements lo patients faciltties Investment lo maximise the use of digital lechnology Further improve our gardens and outdoor space for patients, their families and Ca￿rs. staff and our supporters Continue lo invest in people and educating our slaff and volunleers lo ensure we are fil for purpose Continue to up9rade the hospice environment for patients and their relatives. our workforce and visitors. In 2022123 the hospice continued lo ensure sufficient available lunds wère 8vai18ble to deliver a quality service focussed on suslainabilily. Service provision has not been affected during 2022123 as the hospice remains in healthy position financially, our reserves provide a buffer for uninlerrupled services whilst ensuring the hospice remains a going concern. Service provision will be maintained and the increasing costs of providing all of our h05piGe services will be closely monitored throughout 2023124_ THE EAST LANCASHIRE HOSPICE TRUSTEES, ANNUAL REPORT ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2023 Investment Policy The Memorandum and Articles of Assoctalion of the East Lancashire Hospice holos no reslriclions relating lo inveslmenls. The primary objective of Ihe inveslmenl policy is lo provide financial security and stability lor the hospice. The investment approach also recognises Ihal the hospice is exposed ID the risk ol a sharp fall in ils income due lo the variability ol legacy income and donations and the uncertainly ol future funds from the government. To rèflect this position the hospice continues lo invest in a varied portfolio. The investments portfolio is mDnilored and managed on behalf ol the Board of Tfuslees by the Finance Governance Committee which reports quarterly lo Ihe board All investment proposals and movements are reFX)rtecl lo the Board of Trustees for their approv21, in order that the Trustees can discharge Iheii responsibiltiies in accoidance wtth Section 4 of Ihe Trustee Act 200D. The hospice aims lo g8neiale growth and maximise returns within the parameters of the risk profile. combination of investments considered lo be low risk lup lo 800/018nd medium risk lup lo 2DV/o The Trustees employ the services of 2 Inveslmenl Management companies lo manage the d8y lo day operations ol the investment funds, bolh of which are under a Ois¢relion8ry Client Agreement. The Investment Managers have full discrelitsn lo operatè within the limits of a strategy agreed with and regularly reviewed by the Board of Trustees. Investments are closèly monilorad by our invÈslm@nl managers, the Finance Governance Commillee is kepl well informed and ieceives quarteTly valuations ol portfolios and the hospice has 8 dedicated points of con12cI for any qufrslions. CCLA Investment Managemènt Limited was 8ppoinled in 2015116 and holding discretionary management of 72010 of capital invested, their investment portfolios are operated within a low lo medium risk pic>file on behalf of the hospice. Their purpose is lo help clients maximise their impact on society by harnessing the power ol investment maikels. They concenlrale on working with charities. religious and public sector organisations ICCLA stands for Churches, Chaiilies and Local Aulhoriliesl. Close Brothers, also appointed in 2015136 and holding discretionary management Df 280/D ol Capital invested, they also operate within 8 low lo medium risk profile. Investment markets have remained challenging through the first half 012022 following the global financial Impact of Ihe war in Ukraine. Investments perfotmance was reasonable throughout 2022123 ¢onsidefing the lurbulence the stock markets experienced in March 2022. Invèslmenls are bèing closely monitored by our investment managers, the Finance Govemance Committee is kept well informed and receives quarterly valuations of portfolios and Ihe hospice has dedicated points of contact for any questions. In the event ol the Inve81menl Manager's insolvency. assets would rèmain in trust with th6 nominee company and WOLild not be impacted by the insolvenGy. The primary objective of the inveslmenl policy Is lo provide financial security and stability for the hospice. The investment approach also recognises that the hospice is exposed io the risk ol a sharp fall in ils incorNe due lo the variability ol legacy income and donations and the uncertainly of funds from the NHS IGovernmenl). To reflect this position the h05pice continues lo invest in a varied portfolio. THE EAST LANCASHIRE HOSPICE TRUSTEES, ANNUAL REPORT ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2023 Flnanclal revlew The Slalemenl of Financial Activities is sèl out on page 21, and 8 summary of financial results is given below. Overall Ihe gioups, funds are down this year, a nel loss of £528K was made (2021122. surplus of £208K). Including unrealised gains on investments the lolal nel income for the year is in delicil by £915,81312021122.. lolal nel income was in surplus by £1.084,6081. This was mainly due lo investment reducing in value by £387.685 compared to £876,646 investment gains ag al 31 March 2022. Tol81 income, excluding unrealised gains on inveslmenls, has decreased overall this year by £333K and this is mainly due lo claiming funds 1gsI year fiom NHS England along with an insurance Claim lor business inlerruplion during the period ol the second lockdown. We are most grateful lo all those that donate lo the hospicè and those who wish Easl Lancashire Hospice to benefit from their life savings by leaving a legacy to us in their will. The hospice highly depends on the goodwill of our local Communities lo ensure sufficient funding is available lor patient Services lo operate. In addition lo our public donois and corporate supporters. hospice slaff and volunteers frequently offeT their time, treasure and talents lo help plan and organise funLlraising events and lo promote hospice seNi¢es. Income from Donatlons and Legacles Voluntary donations remains under Ihieal due lo the challenges imposed by the unprecedented economic uncertainly as well as the increasing number of charities, both local and national, all competing lor the same 'donor pound,. We did howevei receive a very generous donation for £10K Irom a local company who continues lo support the hospice, this income covered the cost of rsjnning all hospice geNices for one day. Legacies normally average around £300K per annum which is what we budget for, howover actual legacies received Ihis year are £117K below budget. We do however have a pipeline ol legacies valued al over £200K which are due lo be received in future periods. There continues lo be 8 delay wilh grants of probate which aff￿1$ how quickly a legacy ig received. Grant Fundlng Clinical Commissioning Group ICCGI lunding hislori¢a11y equated lo approximately 113id of overall running costs. therefore the hospice needs lo raise c. £2 million lo break even. This year our grant funding included some non-recurrenl funding lo support our local hospital with winter bed pressures. We were very fortunate lo receive a one-off grant for £10K this year which came with a re8liiclion. these funds were received following the care received on our In Patient Unil IIPU} and the reslriclion was for lacililies within IPU. we wertr able lo purchase some new beds lor our palienls using these funds, £1.6K of which we will carry forward lo use in 2023124. The planned reslrucluring of East Lancashire CCG and Blackburn with Darwen CCG into the NHS Lancashiie and South Cumbria Inlegraled Care Board IICB} in Apiil 2022 was delayed until July 2022 and we envisaged that relationships would change, however this has not yel happened and we have maintained relationships with our 2 commissioners from the CCG'S. The Trustees are very grateful lor the support provided by thè ICB and look forward lo a positive working relationship. Future grant funding in the longer-lerm still remains uncertain and we haven't received an uplift in grant funding since 2021, this is partly the reason why we are holding onlo reserves, as well ss holding inveslmenls aiming to generate additional income for lulure ye8rs. Income Generation This year has been all about Ihe continued growth and diversification of income slr¢ams with a move lo a more positive position than previous years have shown. Our community has b&en incredibly generous once again and combined with the hard work of the Income Generalion team we have sustained previous levels of income with important work being done to enable future growth. We are pleased lo have benefilled from a bounce back in the support we receive from our ¢ommunily, Irom schools lo gioups and associations. There is definitely an increased sense ol people coming logelher lo support the hospice. We are pleased lo say that this year oui fundraising ineome h88 remainerl relalivety Slalic despite uncertain economic limes for many. We aren't yel back lo pie-pandemic levels ol fundiaising income bul we are positive that giowth will be achieved as we move forward 8nd implement the new Income Generation plan. THE EAST LANCASHIRE HOSPICE TRUSTEES, ANNUAL REPORT ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2023 Financial review (continued) The team has worked harcs this yeaf lo produce a 3 year plan that aims lo dev8lop and grow our income generation activities in a sustainablè ancl innovative way. There is a real need lo be agile in what we do and be responsive lo new Dpportunilies as they present themselves. This year we have invested in a new role wiihin ltte funcsiaising team, Corpoiale Fundraiser, We have seen this income stream organically grow over the past few years and now have a dedicated resource lo drive this forward and work lo our strengths. The 3 year plan also sets oul a nlimber of additional posts in the team lo drive growth. There has also been significant investment lo upskill the fundraising team lo ensure the right levels of knowledge and skills exist lo deliver future plans. In peison events have continued lo grow and this year we saw record levels of people allend our annual pub walk, over 500 people walked through the Ribble Valley lo raise money for us. Lollery incorne has continued lo decline as recruilmenl levels hav@n'l been as high as hoped, canvassing didn't resume as quickly a5 planned bul this is being resolved and a new canvassing campaign will be underway next year. Our thanks go lo our Ihousands of loyal, regular lollery players in our communities, as all of these profits help us lo provide hospice setvices. Café Retreat has flourished this year with an increase in income and conlinlies lo providè delicious and nulrilious food lo our patients, their friends, families 2nd the wider cotllmunily. We have returned lo a lull service in thè café where ?nyone ¢an come and enjoy the food and atmosphere. External catering has also grown in popularity and is building a very good reputation in the community. Our shops have continuèd lo Ihiive and this year we are starting lo sellle back in lo a more normal pallern ol retail and how our comrnunily inleiacls and supports our shops. 11 is a slow build however and with Ihe Gos101 living crisis significantly aflecling households and those who support Us, there is a need lo be cautious about levels ol footfall and donations to our shops. Our shops have Gonlinued lo be community hubs lor us and a visible presence of Easl Lancashire Hospice on Ihe high street. Theie really isn't enough space here lor L*S lo write abDtsI all of our wonderful suppDrter$ as thère are so many. Our sincere thanks go out lo everyone who has ¢onlribuled Iheir lime, treasure and talents ID East Lancashire Hospice in the pasl, also lo those that continue to SLlPPOrt the hospice now and in the future. We wouldn't still be here delivering all of our seNices il il wasn'l lor the amazing work Ihal others commit lo in order lo support our hospic& and patients I families. Investments Investments income is higher this year by £39K1£102,991 in 2022123 compared lo £64,182 in 20211221 which is mainly due lo ulilising the best interest rates available for cash held on deposit accounts. The remainder ol our investment income is accumulating within our 2 investment portfolios, this Is lo maximise growth and lo generate income for the future. Funds within these portfolios are 8¢¢e$sible within 1 week should we need lo draw some lunds for cash flow purposes. Overall, gains on investments have decrèased significantly. Investments have decreased in value by £387,685 12021122.. gains on investments were valued al £876,646). 12- THE EAST LANCASHIRE HOSPICE TRUSTEES. ANNUAL REPORT ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2023 Flnanclal revlew (continued) Expenditure Total expendiluwe lor Ihis financial year incre88ed by just over f400K and 820h of this year's costs related lo charitable activities providing specialist and supportive care lo patients and their families,. the remainder was mainly used lo generaltr income through fundraising and marketing. Staffing is our single largest Cost and the majority of this year's increase relates to an inoiease in staff salaries, this was made up ol a 30/0 pay iise from 1st April along wrth £80Q bonus lo each employee in recognilion for their hard work and loyally whilst mainlsining parity ol pay with NHS employeLI colleagues. We remain grateful lo NHS England as Ihay hav& continued lo fund the increase in NHS pension's costs following the 2016 actuarial valuation leffeclive 20191. This increase in employers ¢onliibulions from 14.31/0 10 20.68'10 would otherwise have been an additional cost of over £75K to the hospiGe and il Is not yel clear when employers will be expected lo lake on this cost diieclly. Other key vari8nces in¢lude an increase of £14K in staff training and education costs lolalling £25K lor the year as we continue lo invest in peopltr and furthef develop our workforce. In some areas we have seen cost increases of almost 200/0 which 18 way above the average Cost ol inflation for the year, therefore with no uplift in our grant funding since 2021 and our costs constantly incieasirbg is the main reason that w& have resulted in 8 deficit position this financial year. Part of our long term commitment lo improve efficiency focus&s on the need lo have the right technology and oplimise rts use. To this end wè are in the prO￿sS ol finalising and future proofing our IT needs, which will incur some cost and we know that operational costs lo maintain quality seNices will conlinue to increase in future years. In order for us lo ensure that we deliver higli standards of care and support lo our patients and Iheif families, one of our main slralegi¢ objectives over Ihe next few years is lo concentrate on new or allernalive ways ol generaling income through refocusing on and investing in fundraising, the hospi¢e lollery and our retail oullels. 13- THE EAST LANCASHIRE HOSPICE TRUSTEES, ANNUAL REPORT ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2023 Plans for Future Periods We began lo develop s new Ihiee year strategy in 2022 lo be finalised ané launched in 2023124. This developtnenl made us focus on some ol the slruclural changes we had seen happening in the way we deliver serviceg lor our community and focus on how lo embed Ih05e changes, il made us focus on how oyr staff work and the flexibility we need lo continue lo be successful iri what we do. Collaboration with other providers and the approach lo inlegraled, system wide working foi the benefit of our patients is a key area that we will ooncenlrale on going into the futur&. Our new Strategy is bulk on the solid foundations of what we have achieved so far. Over the last year we have seen the desir& lor patients lo be cared for al home and the need lo support our NHS colleagues lo keep patients out of hospital wlierever possibl&. Although we hav& seen a return lo higher occupancy levels on our IPU, we will look al how lo develop our community setvices (both specialist and our general support) and assess how we use our IPU. We will continue lo work alongside the Inlegraled Care Board and contribute lo the d&velopmenl of th8 Place based strategies which will bring health and care plans lo a local levBI. We have always believed that our hospice belongs lo the community 2nd look lorward lo working in the new slruclure (which is still in developmenll. Our vision continues lo be lo help everyone who comes into contact with the hospice lo make the Tllost of life. We do this by commilling lo Care, listen, respect and work together to SLlPPOrt people lo live well until they die and support those affected by death. Our vision has not changed although the way we deliver our services might well do lor the ultimate benefit ol our patients and their families and carers. This past year has shown 2gain what an incredible leam we have. The team is crealnie and insightful geneialing ideas on opportunities that lie ahead alld we will incoiporale that into our planning. W8 will continue lo challenge ourselves bolh as people and as an organisalion lo ensure we are flexible and adaptable playing a key part in keeping our communities safe, cared for and supported in the best way we can. Our overarching aim remains the same to reach and support more people wilhiii Ouf community whilst ensijring we remain financially viab1& bolh now and in the Ililure. Our piiorilies lor the year ahead will be.. Maintain East Lancashiie Hospice's rating ol Oulslanding by safely delivering quality care lo patients, families and carers an appropriate range and quality ol inlegraled servI￿s, which are struclured lo provide accessible responsive and achievable holisl(c cenlred care. W8 will do this by building on our slrale9ies IDr capturing the very cre81ive, day lo day excellence in practice and provision that our palienls experience and that diff&renliale oulslanding from good. Conliniie lo work in partnership and collaboration with other providers lo achieve a shared vision lo enable the bèst outcomes for patients and their families within our commullilies focusing on providing the right care in the right place al the riohl lime, We will work closely with the Lancashire and Soulh Cumbria Hospices Together Partnership ILSCHTI to achieve greater GOn51slerioy in hDspice provision across our region and be beller able lo articulalelevidence where difference is required. This collaborative is another example of ieacling lo Covid-19 and realising that sharing best practice and working together w8s more powerful than individual hospices operating in isolation. We will implement the IT strategy lo ensur& we are fil for purpose, maximising efficiency in our systems and en8bling lis lo quickly evidence effectiveness are Ill for purpose.. Complete transition lo electronic patient recoids Explore benefrts to the hospice of tools available lo maximise understanding ol workforce planning and ranges in demand and depenrlency in clinical departments Scope OLSI e- prescribing 14- THE EAST LANCASHIRE HOSPICE TRUSTEES, ANNUAL REPORT ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2023 Plans for Future Perlods (contlnuedj Deliver care and support through an inlegraled staff and volunteer worklorce of empoweied people which include8 investing IF) Olir staff and offering quality and flexible opportunities lor volunteers. Review education and training provision for staff and volunteers and rebuild opporiunilies for the provision ol education and support for external partnels. Embed thè new role ol Head ol Wellbeing, Support and Development identifying organisalional priorities and ensuring understanding of role across departments. Relain and build upon maintaining a visible profile of being we11 known, respected and valued whilst eonlinijing lo dèvelop new and sustainablè relationships with key partners. Develop andlor re-design exisling community and support services lo ensure we are fil lor purpose working with key stakeholders lo ensure appropriateness ol any proposed new service developments. In light ol the slruclural extern81 changes. There is a drive lor some consistency in provision le.g. Hospice al Homel across providers I the loolprinl bul il Blackburn with Darwen becomes a separate 'Place' we may see a rel￿rn lo the days where very drfterenl things were required by different aulhorilies. We will Il&x accordinoly bul support equality ol access & provision. Continue lo be financially robust ancl prudent in all that we do lo ensure that we use all OLJr resources as efficiently as possible lo achieve the giealesl impact loi patients and Ih8ir families. Continue with our programme of refuibishmenl lo ensure our patients have seamless care in a comfortable and Ihefapeulic environment. lrnplemenl sustainable income generation in(tialives lo work within our changed enviionmenv community. Prlnclpal Risks and Un¢ertain¢ios An organisalional risk register is monitored by the Governance framework. The 8oard of Trustees acknowledge their iesponsibilily in identifying major risks lo which the hospice may be exposed and there is a formal process of risk management throughout the organisalion. The Truslees have exaTnined the major slralegic and business risks Ihal the Charity laces, and confirm systems ale established lo enable regular reports lo be produced so that the reasonabl& steps Can be laken lo minimise risks. Ensuring compliance wilh information governance and data protection remains high on our agenda and is incorpor8led into oui 2023-2026 slralegi¢ objectives 8clic>n plan. Flnancg Good eo-operalion continues lo exist with our Commissioners who support the grant funding of the hospice. The most significaiil risk lo financial suslainabilily ol Ihe hospice is the potential for a reduction in income combined with increasing costs. Therefore our reseTves are planned lo cover the maximum foreseeable reduction in income over a period of 24 months. 15- THE EAST LANCASHIRE HOSPICE TRUSTEES, ANNUAL REPORT ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2023 Princlpal Risks and Uncertainties {conlinuedJ Incom8 Generation We remain conscious ol the impact that Covid-19 had and continuès lo have on household income due lo the current economic climate. We know that there will be even more pressures on the donor pound in fuluie periods. All our income generation is managed internally by our Ineome Generation team who are responsible for all volunteers who support our fundraising and retailing. W8 Continue lo work hard lo ensure our supporters data is secure as well as developing our systems lo ensure Ihal our SLJPPOrters can choose how they would like lo be contacted and with what types ol communi¢alion. We are also aware that we have increasing compelilion as more and more charities compete for the same pols of money. Data Protection and Confidenllalily Thesa 8re vital lo our oigariisalion and we are fully aware ol the repulalional risks posed by 'social media, such as 'Facebook' anc6 'Twiller'. Approa¢h to Fundraising We are commilled lo praclicing the highest standards and we lake care lo erTrsure all oui fundraising a¢livilies reflect the hospice values. We are registered with the Fun(Sraising Regulator and as such monitor ourselves against their reGognised standards ensuring that all our lundraisin9 activity con)plie8 with Ihe Fundraising Regulators Code ol Fundraising Standards. Fundralsing Complaints Once again we did not receive any complaints about our fundraising activities during the year. We strive lo always act ethically and responsibly, using best practice when Communicating with our supporters, and WÈ strictly adhere lo General Data Prtsleclion Regulations IGDPRI processes in relation lo data usage. How We Protect Vulnerable People and Members of the Publi¢ All our supporters are Irealed as indivicluals and we have policies and systems in place for ensuring that vulnerable people are recognised and Irealèd aceordin91y, We adhère lo the Fundraising Regulator's Codp of Practice and the Fundraising Promise We promptly action any requests for removal from our database. We never sell or pass on the d8la of any ol our donors 2nd supporters lo any third parties under any ¢ir¢umslances We only work with professional fundraising agencies who can demonslrale a proven track record of best practice in the seclor and Compliance with Ihe Fundraising Regulalof. How we work with and oversee any commercial partlclpators I professional fLindral$ers This is fully covered within our policiès which are supported by a slandard operating procedure which includes form81 agreement Ihal is monitored within ouf Govern8nee Framework. Conformatlon to Fundraising Regulations Compliance is managed by our Income Generation and Marketing Director, snd Is governed through our Risk Mat)agemenl GDvernance Committee. This ensLJrÈs that fundraising aclivily is fully ¢omplianl with legis181ion and regulations and we have internal policies which ieflecl thes6. We have a risk management policy so as lo minimise or as lar as il is reBsonably practicable eliminate any risks lo patients, slafi or volunl@ers, supporters and members ol the publi¢ in relation lo our fundraising aGlivily. Staff ￿entIty and assess risks and pul necessary pr8venlable controls in place. 16- THE EAST LANCASHIRE HOSPICE TRUSTEES. ANNUAL REPORT ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2023 Statement of Trusteeg, responsibilitigs The Trusl@es (who are also directors of The Easl Lancashire Hospice for the purposes of company law} are responsible for preparing the Trustees, Annual Report (including the Slialegic Report) and the financial slalemenls in accordance with applicable law and United Kingdom Accounting Standards Iuniled Kingdom Generally Accepted A¢¢ounling Praclicèl. Company law requires the Trustees lo prepare financial slalemenls for each financial year, which give a true and lair view ol the slate of affairs of the charitable company and of the incomin9 resources and application of resour¢es. including the income and expendrture, of the charitable company for that period. In preparing these financial slalenienls, the Trustees are iequired lo.. select suitable accounting poli¢ies and then apply them consi8lenlty', obse*ve the methods and principles in the Charities SORP 2019 IFRS102}', make judgements and eslimales that ale reasonable and piud&nl', slal6 whether applicable UK accounting standards have been followed, subject to any material departures disclosed and explained in the financial slalemenls., prepare the financial slalemenls on the going concern basis unless il is inappropriate lo presume that the charity will continue in operation. The Trustees ale responsible for keeping adequate accounting records that disclose with reasonable accuracy al any lime the financial position ol the charitable company and enable them lo ensure that the financial slalemenls ¢omply with the Companies Act 2006. They are also responsible lor safeguardin9 the assets of th& chaF(table company and hence for taking reasonable steps for the prevention and detection of Iraud and other irregulariligs. In so lar as the TrLt$lees are aware, there is no relevant audit information ol which the charitable company's auditor is unaware, and the Trustees have taken all steps (hal they ought lo have taken lo make themselves aware of any relevant audil informalion and lo establish that the auditor is aware of that information. Audltor A resolution proposing that MHA Moore and Smalley b& re-appointed as Eudilor ol Ihe charily will be pul lo the Annual General Meeting. This report, which incorporates th8 Slralegic Report, was approved by the bg8rd ol Tmslees on .i¥l,i{!17%and signed on ils behalf Mr F G Parr- Chalrman 17- THE EAST LANCASHIRE HOSPICE INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE EAST LANCASHIRE HOSPICE Opinion We have audilecl the financial slalemenls of The East Lancashire Hospiee Ilhe'psrenl charitable company'l and ils subsidiary Ilhe 'group'l for thé yèar ended 31 March 2023, which comprise Group Slalemenl of Financial Aclivilies, Company Slalemenl of Financi81 Aelivilies, Group Balance Sheet, Company Balance Sheet, Group Cash Flow Slalernenl and notes lo the financial slalemenls, Including significant accounting policies. The financial reporting framework th21 has been applied in their prep3r81ion is applicable law and United Kingdom Accounting Standards, including FRS 102 'The Financial Reporting Standard applicable in the UK and Republic ol Ir61and' (United Kingcfom Gener811y Accepted Accounting Praclicel. In our opinion the financial slalemenls.. give a true and lair VIÈW of the slate of the group's and paienl charilable company's affairs as al 31 March 2023, and ol group's incoming resources and application of resources, including ils income and &xpendilure, for the yèar then ended., have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice.. and have been prepared in accordance with Ihe requirements of the Companies Act 2006. Basis for opinlon We conducled our audit in accordance with International Standards on Auditing (UK) IISAS IUKII and applicable law. Oui responsibilities under those $12ndaFds ar& further described in Ilie Auditor's responsibilities for thè aLJdil ol the financial slalemenls section of our report. We are independent ol the groLJP and paienl charitable company in accordance with the ethical requirements that are relevant lo our audit tsf the financial s181emenls in the UK, including the FRC'S Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance wilh these reqLJiremenls. We believe that the audit evidence we have obtained is sufficient and appTopriale lo provide a basis for our opinion. Conclusions rèlallng to golng concern In auditing the financial stalerllenls. we have concluded Ihal the Iruslees, use of the going concein basis of accounting in the preparation ol the financial sl8lemenls is appropriate. Based on the work we have performed, we have not identified any material un¢ertairTrlies relating lo events or Gondilions that, individually or colleclivety, may cast significonl doubl on the group's or parent charrtable company's ability lo continue as a going concèrn lor a period ol al least twelve months from when the financial slalemttnls are aulhorised for issue. Our responsibilities and the responsibilities of the Iruslees with respect lo going concern are clescribed in the relevant secliolls ol this report. Other informatlon The other infoimalion comprises the information included in the Iruslees, annual report, olher than the finallcial slalements and our auditor's report Ih&reori. The Ifuslees are responsible lor the olher information contained within the annual report. Our opiniDn on Ihe financial slalemonls does not cover the other information and, except lo the exlenl otherwise explicilly slated in our report, we clo not express any form of assurance conclusion Ihereon. Our responsibility is lo read the olher information and, in doin9 so. constder whether the othèr inloimalion is materially inconsislenl with the financial slalemenls or our knowledge obtained in the course of the audit or otherwise appears lo be materially misslaled. 11 we identify such material inconsislen¢i&s or apparent material misslalemenls, we are required Its determine whether this gives rise lo a material misslalemenl in the financial slalemen15 themselvès. 11, based on the work we have performed, we Conclude that Ih&ie is a material missl816ment ol this other inlomi81ion, we are required lo report Ihal fact. 18- THE EAST LANCASHIRE HOSPICE INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE EAST LANCASHIRE HOSPICE ICONTINUEDI Other information Icontlnuedl We have nothing to report in this regard. Oplnlon on other matters prescribed by the Companles Act 2006 In our opinion, based on the work undertaken in the course of the audit., the information gwen in the Iruslees, reF￿rt lincorporaling Ihe strategic report and the directors, report) for the lin8ftcial year for which the financial statements are prepared is consislenl with the financial slalemenls.. and the slralegic report and the directors, report have been prepared in accordance with appli¢able legal requirements. Matters on which we are requlred to report by exceptlon In the light of our knowledge and undeislanding of the group and parent charitable company and ils environment obtained in the course of the audit, we hav& not identified maleiial misslalemenls in the slfalegic report and the diTeclors' report. Wa have nothing lo report in respect ol the following mallers in relation lo which the Companie5 Act 20C requires us lo report lo you if, in our opinion,. ad&qu81g accounting iecords have not been kept by the parent charil3ble company, or returns adequate for our audit have not been received from branches not visited by us., or the paienl charitable company's financial $181emenls are not in agieemenl with the accounting records and returns., or ertain diselosures of directors, remiJneraliorE sp8cif18d by law are nol made,. or we have not received all the infoimalion and explanations we require lor our audit. Respecliv8 rasponslbllitles of the trustee$ As explained more fully in the Iruslees, responsibilities slalemenl, the Iruslees {who are also the direclor8 of the charitable company for Ihe purposes of company law) are responsible lor the preparation of the financial slalemenls and lor being sslisfied that they give a true and fair view, and for such internal control as thè Iruslees delefmine is necessary lo enable the preparalton ol financial slalemonls Ihal are free from material miss18lemenl, whether due lo fiaijd or error. In preparing the financial slatemenls, the Iruslees are responsible for assessing the group's and parent charitablè company's abilily lo ¢or>linue as a going concerti, disclosing. a5 applicable, malteTS relaled lo going concern and using the going concern basis of accountin9 unless the Irtsslees either intend lo liquidate the group or the parent charitable company or lo cease operations, 01 have no realistic allernalive bul lo do so. Auditor's responslbillliès for the audit of the flnancial statements We have been appolnled auditor under the Companies Act 2008 and report in accordance with this Act. Our objectives are lo obtain reasonable assu¥an¢e about whether the financial slalemenls as a whole are free from material misslalemenl, whether due lo Iraud or error, and lo issue an audilorfs report that includes our opinion. Reasonable assurance is a high level of assurance, bul is not a guarantee that an audit conducted in accordance with ISAS IUKI will always delecl a material misslalemenl when il exists. Misslalemenls Can arise fiom fraud or error and are considered material if, individually or in the 8ggr@gale, they could reasonably be éxpected lo Influence the economi¢ decisions of users taken on the basis of Ihestr financial slalemenls. 19- THE EAST LANCASHIRE HOSPICE INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE EAST LANCASHIRE HOSPICE ICONTINUEDI Irr￿UlarItIes, in¢ludinu fiaud. are instances of non-compliance with laws and regulations. We design procedures in line with our reyponsibililies, outlined above, lo dèlecl material misslalemenls in respect of irregularities, including fraud. The specrfic prtsceduies for this engagement and the extent lo which these are capable of delecling iriegularilies, including fraud is detailèd below.. Enquiiies with management about any known or suspe¢led instances of non-compliance wilh laws and regulations., Enquires with mallagemenl about any known or suspected instances ol fraud., Review ol minutes of board meelin9S', Examination ol journal entries and other adjuslmenls to lesl for app¥oprialenèss and identify any instances ol management override of conliols.. Review ol legal and professional expen(Silure lo identify any evidence of ongoing liligalion or enquiries., Review ol the systems for iecordiiig income, and lesling of a sample of income transactions throughout Ihe year lo check they have been recorded in the accounts and in the correct period. Because of th8 field in which the client operates we identified that employmenl12w, health and safety legislation, Care Quality Commission ICQCI compliance. and compliance wilh the UK Companies Act are the areas most likely lo have 2 malefial impact ori the financial slalemenls. Because of the inherent limitations of an audit, there 15 a risk that we will not delecl all irregulsrilies, including those leading lo a material misslalemenl in the financial slalemenls or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial slalemenls, 85 we will be less likely lo become awsre of instances of non-compliance. The risk is also greater regarding irregularities occurring due lo fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresenlalion. A further description of our responsibilities for the audtt of the financi81 slalemenls is located on the Financial Reporting Council's website al.. ￿￿w.frc.O1g.uk1audIt0rsresP0￿slb1lI1les. This description forms part of our aLJdilor's report. Use of report This report is made solely lo the charitable company's members, as a body. in accordance with the Chapter 3 of Part 16 of the Companies AGI 2006. Our audit work has been undertaken so that we might slate lo the charilable company's members those mallers we ale required lo slate lo them in an auditor's report and for no other purpose_ To the lullest exlenl permilled by law, we do not accept or assume responsibility lo anyone other than the charitable company and the chaiilable company's members as a body, lor our audit work. for Ihis ieport, or lor Ihe opinions we have formed. Chrlsline Wll$on (Senior Statutory Auditor) For and on behalf of MHA Moore and Smalley Chartered Accountarbts Statutory Audltor Richard House 9 WineklÈy Square Preston PR13HP Dale.. 2111112023 -20- THE EAST LANCASHIRE HOSPICE CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES IINCLUDING INCOME & EXPENDITURE ACCOUNTI FOR THE YEAR ENDED 31 MARCH 2023 Unrestrictèd fund8 Rostil¢ted funds Tol41 fund5 202J Total funds 2022 Note Income from Donations and legacies.. Donations and gifts Legacies 288,720 182,775 288,720 182,775 301,205 304,495 Charltable activities.. Commissioning Groups Inlegraled Care Board Other grants Catering and other In￿Me 1,132.885 1,132,885 1,132,885 68B.731 101,633 10,000 59B,731 101,633 491,627 79,599 Olher tradlng actlvlties.. Goods for resale Fundraising events Lollery Shop 20,731 391,409 399,081 268.121 20,731 391,409 399.081 268,121 18,738 391,153 409,431 228,040 Investments 102.991 102.991 64,182 Olher Income 398,809 Total income 3.477.077 10,000 3.487,077 3,820.164 Expenditure on Raising lund8 Charitable aclivilies 717,001 3.289,749 717,001 3 298,204 750,183 2,862,019 8,455 Total expendlture 4,006,750 8,455 4,015,205 3,612,202 Net incomellexpenditurel before other gains and losses 1529,673) 1,545 1528,1281 207,962 Gainlllossl on inveslmenls 1387,685) 1387,6851 876,646 Net incomellexp&ndilurel for th8 year 1917,358) 1,545 1915,8131 1.084,608 Transfers bebNeen funds N8t movement In funds 1917,3581 1,545 1915,8131 1,084,608 ReconcllSallon of funds.. Total funds brought forward 16,211,710 1,573 16,213.283 15,128,675 Total funds carried forward 15,294,352 3,118 15,297.470 16,213.283 All ol the above results are derived from Continuing aclivilies. All gains and losses recognised in the year are included abovè. The result lor the year lor Companies A¢1 purposes comprises the nel income lor the year nel of uniealised profits and losses on investments and was a delicil 01 £528,12812022'. suiplus of £207,9621. 21- THE EAST LANCASHIRE HOSPICE CONSOLIDATED BALANCE SHEET AS AT 31 MARCH 2023 Unr8stric18d fund5 Restricted Total funds Total funds funds 2023 2022 Note Flxed assets Tangible fixed assets Investments 1,524,331 11,715,144 1,524,331 1,611,114 11.715,144 12,057,567 13 13.239,475 13,239,475 13,668,681 Curr8nt assets Stock Debtors Cash on bank deposit Cash al bank and in hand 7,063 207,157 2,305,841 318,642 7,063 207,157 2,305,841 321,760 13,409 405,924 2,309,078 644,633 14 3,118 2,838,703 3,118 2,841,821 3,373,044 Creditors: amounts lalling due within one year 1S 1783,8281 1783,8261 1828,4421 Nel current assets 2,054,877 3.118 2,057,995 2,544,6J2 Net assets 15,294.362 3,118 15,297,470 16.213.283 Represented by: Total funds 16 15,294,352 3,a18 15,297.470 16.213.283 These financial slalemenls were approved by the Trustees on behalf by.. .,1.4.J 10 l.￿?.￿........ and signed on their MrFGParr- airman Mrs A R Palllsler- Trustee 22- THE EAST LANCASHIRE HOSPICE BALANCE SHEET AS AT 31 MARCH 2023 UnrestrScled RgStri¢ted funds funds Total funds Total funds 2023 2022 Note Flxed assets Tangible fixed assets Investments 12 13 1,497,263 11.715,244 1,497.263 1,576,346 11,715,244 12,057,867 13,212,507 13,212,507 13,634,013 Current as$els Stock Debtors Cash on b8nk deposit Cash al bank 8nd in hand 6,250 258,479 2,30S,841 302,562 5,250 258,479 2,305,841 305,680 5,250 455,129 2.309,078 634,353 14 3.118 2,872,132 3.118 2,875,250 3,403.810 Creditors.. amounts falling due within ono year 15 1770,299 1770,2991 1796.5101 Nel current assets 2.101,833 3,118 2,104,951 2.607.300 Net assets 15,314,340 3,118 15,317,458 16,241,313 Represented by.. Total funds 15,ts14,340 3,118 15,317,458 16,241,313 These linanctal slalemenls were approved by tha Trustees on behalf by.. 12().7,S,.. . and signed on their MrFGParr- airman Mrs A R Pallister- Trustee Company Registration Number.. 03755216 -23- THE EAST LANCASHIRE HOSPICE CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2023 2023 2022 Nel incomellexpenrlilurel lor the year 1915,8131 1,084,608 AdJ4islin9171s for Investment income {Gainllloss on investments Depreciation Profil on disposal of fixed assets Ilncreaselldecrease in stock Ilncreaselldecrease in debtors Increaselldecreasel in creditors 1102,9911 387,6B5 116,208 {1,2001 6.346 198,767 144,6161 164,1821 {876,6461 120,787 19.223} 62,234 43,964 Nel cash {used Inl I provided by operating acllvltles 1355,614} 361,522 Cash flows from investing actlvities: Investment income Purchase of tangible fixed assets Receipts from sales of fixed assets Purchase of illveslmenls Proceeds from sale of investments Movement in cash held as inveslmenls 102,991 29,4251 1.200 11,072,817) (1,945,6561 94B,679 500,097 78,876 186,0091 64,182 186,3301 Net cash {Lised inl I provided by investlng activStie5 29,504 11,553,716) Change In cash and cash equlvalenls in thp year 326,1101 11,192,194) Cash and c8sh equivalents al Ihe beginning of the year 2,953,711 4,145,905 Cash and Ga5h equivalents at the end of the year 2,627,601 2,953,711 Analysis of cash and cash equlvalents Cash in hand Cash al bank 1,660 2,625,941 2.09D 2,951,621 2,627,601 2,953,711 Total group cash ancl cash equivalents includes a lolal of £3,11812Q722.' £1,5731 relating lo r8slricled funds. -24- THE EAST LANCASHIRE HOSPICE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 Accounting pollcles Basis of preparation The financial slalemenls have been prepared in accordance with Accounting and Reporting by Charities.. Slalemenl of Recommended Practice applicable lo charilieg piepaiing Iheif accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Iieland issued in October 2019, the Financial Reportir)9 Slarkdard applicable in the United Kingdom and RèpLJblic ol Iieland {FRS 1021. the Charities Acl 2011, the Companies Act 2008 and UK Generally Ac¢epled Accounting Praelice. The financial slalemenls have been prepared undei the historical cost convention, with the exception of investments which are included al matkel value. The East Lan¢ashire Hospice meets the definition of a puljlic benefit entity under FRS 102. The Slalemenl of Financial Aclwilies (SOFA) and balance sheet consolidate Ihe financial slalemeftls ol the charity an(5 ils subsidiary undertaking. The results of the subsidiary are consolidated on a line by line basis. The charity has availed ilsell of Paragraph 4111 of Schedule 1 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulalions 2008 and adapted the Companies Act formals to reflect the speci81 nature ol the charrty's aclivilies. No separate SOFA has been presented foi the charity alone as permilled by Section 408 01 the Companies Act 2006. The parent Company's result for Ihe year for Companies Act purposes was a deficrt of £923,85512022' surplus of £1,075.0421. Golng concern The Iruslees are required lo assèss whalher the usg ol going concern is appropriate. i.e. whether there are any material uncertainties related to 8venls or conditions that may cast significant doubl on the ability ol the charity lo continue as a going concern. The Trustees make this assessment in respect of period of at least one year from the d8le ol aulhorisalion of the accounts. Al the dale ol appioving these accounts, the Iruslees have a reasonable expectation that the charrty has suffi¢ienl cash resources lo enable il lo meet ils liabilities as they fall due lor al least 12 months from the dale ol approval. Thus the Iruslees continue lo adopt the going concern basis of accounting in prep8ring the financial slalemenls. Company status The Company is a company limilecs by guarantee. The members of the company ale the Tiuslees named on page 1. In the event ol the company being wound up, the liability in respect of Ihe guarantee is limited lo £10 per member of Ihe company. Fund accounting General funds are unreslricled funds, which are available for use al the discrelion of the Trustees in furtherance of the general objeclivtrs of the charily and which have not been designated for other purposes. Designated funds are sel aside by the Trustees out of unreslricled general funds for specific purposes or projects. Reslricled fullds are those lo be used in accordan¢e with specrfic reslriclions imposed by donors or which have been raised by the charity foi particular purposes. The ¢osl ol raising and administering such funds are charged against the spectrt¢ fund. The aim and use of each reslricled fund is sel out in the notes lo the account8. -25- THE EAST LANCASHIRE HOSPICE NOTES TO THE FINANCIAL STATEMENTS ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2023 Accountlng policies Icontlnuedl Income Income is recognised when the ch81ily has enlillemenl lo the funds, any performance conditions allached lo Ihe ilemlsl of income have been mel, it 15 probable that the income will be received and th& amount can be measured reli£bty. Income from government and other gr8nls, whether 'capilal' grants or 'ievenue' grants, is recognised when the charty h8s enlrtlemenl lo the funds, any perfomiance conditions 8118ched lo the grants have been mel, il is probable that the ineome will be recewed and the amount can be measured reliably and is not deferred. For legacies, enlitlèmènl is taken as the e8rlier of th& dalè on which either.. thè charity is aware that probate has been granted, the eslale has been finalised and nolificalion has been made by the execulorlsl lo the Trust that 8 distribution will be made, or when a distribution is received from the eslale. Re¢eipl ol a legacy, in whole Dr in part, is onty considered probable when the amount can be measur@d reliab5y an(5 the charity has been nolrfied ol (he execulorfs inlenlron lo make a dislribulion. Where legacies have been nolrfied lo the charity, or the charity is aware tsl the granting of probate, and th& criteria for income ret￿nitIOn have not been mel, then the legaey is a Irealed as a conlingenl assel and disG105ed il material. Income received in advance of an event 01 provision of other specilic provision ol olher specffied service il is deferred until the criteria for income reco9nilion are mel. Trading income is recognised al the fair value ol the consideration receiv&d oi receivable for goods and services provided in the normal course of business. and is shown nel ol VAT and other sales related taxes where applicable. Income from the sale of goods is reCognis￿ when the signifi¢anl risks and rewards of ownership ol the goods have passed lo the buyer (Usual￿ on dispatch of th8 goods), the amount of revenue can be flleasured reliab￿, it is probable that the economic benefits associated with the transaction viill flow lo the enlity and the costs incurred or lo be incurrecl In respect ol the transaction can be measuied reliably. Lollery income is accounted lor whèn received. lo Ihe exlenl that the company has a right lo consideration arising from the perfDrrnan￿ of 115 conlraclual arrangements. Interest on fund5 held on depos11 is included when receivable and the amoiinl c2n be measured reliably by the charity." this is normal￿ upon nolifi¢alion of the interest paid or payable by the Bank. Donatfrd servlces and fa¢llltles Donated profession81 Services and donated 18cililies are re¢ognised as incom& when the charity has control Over the item, any conditions associated with the donated item havtr been mel, the receipt ol economic benèfit from the use by the charity ol Ihe item is probable and that economic benefit can be measured reliably. In accorclance with the Charities SORP IFRS 1021, no amounts are included in the financial slalemenls for services donated by volunteers. On receipt, donatèd professional serv￿eS ancf donated fa¢ililies ale recognised on thè basis ol the value ol the gift lo the chaiity which is Ihe amount the charity would have been willing lo pay lo obtain services or facilities of equivalent economic benefit on the open market., a Goiresponding amounl is then recognised in expendilure in Ihe periDd of receipt. Expenditure Expenditure is recognised once Ihere is a legal or consliuclive obligation lo make a p2ym?nl lo a third party, il is piobable that selllemenl will be required and the amount ol the oblig21ion c2n be measured reliably. All expenditure is accounted lor on an accruals basis and has been classified under headings Ihal aggregate all costs related lo the category. Vvhere cosls cannot be directly allribuled lo particular headings they have been allocated lo aclivilies on a basis consislenl with the use ol the resources. -26- THE EAST LANCASHIRE HOSPICE NOTES TO THE FINANCIAL STATEMENTS ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2023 Accounting policies Icontinued Expendlture Icontinuedl Detailed analyses of the expendrttJr&, including ifrecoveiable VAT where applicable, are provided in the notes lo the accounts. Tanglble flxed assets Tangible fixed assets costing more than £1.000 are capilalised and included at cosl including any incidental expenses ol a¢quisilion. Depreciation is provided on all tangiblè fixed assets al rates calculated to write off the cost on a slraighl line basis over their expected economic lives as follows.. Short leasehold building improvements Fixtures, fillings and equipment over the period ol the lease over 5 years Investm8nts Investments ale inilialty rec￿nised al Iheir transaction value and subsequenlty measured al Iheir market value as al the balance sheet dalè. The slalemenl of fi.nancial aclivilie5 inGludes the nel gains and losses arising on revaluation and dispDs819 throughout the year. All gains and losses are taken lo the slalemenl of financial activit￿5 as they arise. Realised gains and losses on investments are calculated as the difference be￿een sales proeeeds and their opening carrying value or their purchase value il acquired subsequent lo the first d8y of the financial yeai. Uniealised gains and losses are calculated as the difference between Ihe fair value al the year end and Ihoir carrying value. Re21iseiJ and unrealised investment gains and losses are combined in the Slalemenl of Financial Aclpiities. Stock Stock is included al the lower ol cost and nel realisable value. Items donated for resale or di81ribulion are not included in the linancial statements until they are sold or disliibuled, on the basis that il is considered impraclieal lo measure the fair value of goods donaled for resale, and th6 costs ol valuation outrNeigh Ihe benerrt lo users ol the accounts and the charily of this inlotmalion. Debtors Trade and other debtors are recognised al the selllemenl amounl due after any trade discount offttred. Prepayments are valued al the amounl prepaid nel of any Irade discounts due. Creditors Crediiors are recognised where the charity has a present obligation iesulling Irom a past event that will probably result in the Iransfer ol funds lo a Ihiid party and the amount due lo settle the obligation can be measured or eslimaled ieliably. Creditors are normally recognised al Iheir selllemenl amount after allowing for any trade discounts due. Financlal Inslrumènls The charity only has financial assels and financial liabilities of a kind Ihal qualify as basic financial insl¥umenls. Basi¢ Iinancial inslfumenlg are initially recognised al transaction value and subsequently measured al their selllement value. -27- THE EAST LANCASHIRE HOSPICE NOTES TO THE FINANCIAL STATEMENTS ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2023 Accounting policle$ Iconlinu8dl Operating leases Rentals applicable lo op8raling leases are charged lo the SOFA on a slraighl line basis over the leim ol the leas&. Penslons The eompany operates a definecl conlribulion pension scheme. The assets of the scheme are held separalely from those of the company in an independently administer￿ fund. Contributions payable for the year are charged in the SOFA. The company also conlribules lo a mulli-employer defined benefit scheme. As the proportion of the fund allribulable lo The East Lancashire Hospice cannot be calculated this schème has been Irealed as if il was a defined contribution scheme. Taxation Th@ company is a register￿ charity and therefore exempl from laxalion. Government grants Government grants are recognised 21 the fair value ol the asset reeeived or receivable when there is reasonable assurance that the grant conditions will be mel and the giants will be received. A grant that specifies performance conditions is rec￿niSed in income when the performance conditions are mel. Where a grant does not specify performance COnd￿lOn$ it is recognised in income when the pioceeds are received or receivable. A grant rèceived before the rec￿nitIon criteria are satisfied is recognised a5 a liability. Judgements and key sources of &sllmation uncertainty In the application of the charity's accounting policies, the Trustees are required lo make iudgemenls, eslimales and assumptions about the carrying amc>unl ol assets and liabilities that are not readily apparent from other sources. The esliTnales and associated assumptions are based on historical experience 8nd other laclors that are considered lo be relevant. AclLJal results may differ from these eslimales. The eslimales and underlying assumptions are reviewed on an ongoing basis. Revisions lo accounting estimal8s ale recognised in the period in which the eslimale is revised where the revision affects only that period, or in the period of the revision and future p8riods whe¥e the revision 8ffecls both current and future periods. The Trustees do not believe that there ale any eslimales and assumptions which have a significant risk ol causing a material adjuslmenl to the carrying amount of 8ssels and liabilities. 28- THE EAST LANCASHIRE HOSPICE NOTES TO THE FINANCIAL STATEMENTS {CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023 Income Unrestrlcted Restrlcted funds funds 2023 Donatlon$ and lggaciès: Donations and gifts Legacies 288,720 182.775 288.720 182,775 Charltable activities.. Clinical Commissioning Groups Other granls Caleiing and other income 1.132,885 S88,731 101,633 1,132,685 598,731 101,633 10,000 Other trading acllvitles.. Goods for resale Fundraising events Lollery Shop 20,731 391,409 399,081 268,121 20,731 391,409 399,081 268,121 Investments 102,991 102,991 Other Income (see below) 3,477.077 10,000 3.487,077 Olher unreslficled income comprises £nil 12022.. £4.6801 Coionavirus Job Relenlion Scheme I'CJRS'I income, £nil12022.. £33,662) insurance proceeds due lo business inlerruplion, and £nil {2022.. £21,389) of retail and other grants. Other reslricled income comprises £nil12022.. £339,0781 of NHSE funding. -29. THE EAST LANCASHIRE HOSPICE NOTES TO THE FINANCIAL STATEMENTS ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2023 Income Icontlnuedl Unrestrlcled Restricted funds funds 2022 Donatlons and legacies.. Donalions arFd gifts Legacies 307,205 304,495 301,205 304,495 CharAfable actlvltles.. Clinic(Il Cominissioi?ii?g Groups Olher granls Calei7ng 8nd olh6rincome 1, 132,885 490,871 7g,599 1, 132,885 491,627 19.599 750 Othèr Irading actlvities.. Goi)ds for resale Fui?draisii?g events Lollery Shop 18,T38 39Y, 153 409,431 228,Q40 18,738 391, 153 409,431 228,040 Investments 64, 182 64,182 Other Income 59,T31 339,OT8 398, 809 3,480,336 339.828 3,820, 164 Expenditure Dlre¢t Costs SLlPPOrt costs (note 41 2023 Expeiiditure on raising funds- Goods for resale Fundraising èvents Lollery Shop Investment management costs 6,992 281,519 94.053 260,079 27,121 1,211 29,068 16,958 8,203 310,587 111,011 280,079 27,121 669,764 47,237 717.001 Expenditurè on charitable activilies: Hospice Inole 51 2,860,967 437,237 3,298,204 3,530,731 484,474 4,015,205 -3D- THE EAST LANCASHIRE HOSPICE NOTES TO THE FINANCIAL STATEMENTS ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2023 Exp8ndlture Icontinued Dlrecl costs Support costs (note 4) 2022 Expenditure on ralslng funds.. Goods foi'iesale Fiindraising events Lollery Shop Inveslmenl mailagemenl costs 5,555 291,377 96,378 278,205 29,651 1,251 30, 164 17,596 6.812 321,541 If 3,9T4 278, 205 29,651 701, 166 49.017 750, 183 Expendllure on charitable actlvitles.. Hospica (noté 5) 2.408,292 453. 727 2,862,019 3, 109,458 502, 744 3,612,202 All expenditure on raising funds was unreslricled in the current and previous yea¥. Support costs 2023 2022 Salaries Motor and travel Printing and slalionery Postage Telephone Computer support Other staff cosls Sundry expenses 418.136 386 9,187 13.204 18,999 26,828 {3,0481 782 433,207 70 11,431 14,398 15,954 24,999 1,689 998 484,474 502.744 31- THE EAST LANCASHIRE HOSPICE NOTES TO THE FINANCIAL STATEMENTS ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2023 Expenditure on charitable activltles- H05plce Hosplce and 8peclallsed palllatlve car• $8rvices 2023 2022 Salaries Tr8ining and recruilmenl Property costs Provision of care services Repairs and maintenancè M(Jlor and travel Sundry Depre¢ialion Irrecoverable VAT Governance costs Inole 61 Support costs allocated 2,313,277 43,137 91,670 131,539 79,457 10,996 38,690 108,508 B,566 35,611 436,753 1,908,580 23,162 94,135 108.000 90,686 9,832 27,188 117,038 6,493 23,681 453,224 3,29B,204 2,862.019 Expenditure on ¢harilable aclivilies was £3,2gJ8,204 12022." £2,862,019) of which £3.289,749 was unreslricled12022'. £2,517,807) and £8,455 was reslricled12022.. £344,212). Governance cosls 2023 2022 Audit Trustees, liability insiirance Legal and professional fees Support costs allocated 10.250 423 24,454 484 8,650 403 14,125 503 35.611 23,681 Net income 2023 2022 Slated 8lleichai.gii?g.' Depiecialion Operating leases Aijdil l&e- charity and consolidated accounts Audit lee- subsidiary 116.208 58,022 7,900 2,350 120,767 58,584 6,650 2,OQO 32- THE EAST LANCASHIRE HOSPICE NOTES TO THE FINANCIAL STATEMENTS ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2023 Analysi5 of Staff costs. Trustee remuneralion and expenses, and cost of key manayement personnel 2023 2022 Payroll costs were Wages and salaries Social security cos18 Pension costs 2,565,000 228,774 204,028 2,286,981 199.730 196,617 2,997,802 2,683,328 The number ol employees whDse remuneration lor Ihe year exceeded £60,000 was.. 2023 2022 £60,000 10 £69,999 £90,000 10 £99,999 £100,000 10 £109,999 01 the employees whose remuneration exceeded £80,000. there is one employee12022.. two) accruing benefils under defined benefit pension schemes. Analysls of staff costs. Trustee r8muneralion and expenses, and cost of key management personnel Icontlnuedl The Trustees were not paid or le￿Ived any olhei benefits from employment wrth the charity or its subsidiary in the yoar12022". £nill neither were they reimbursed expenses during the year12022-. £nill. No charity Trustee received payment for professional or other services supplièd lo the charily12022.. Énill. Trustees made donations lo the charity lolalling £6012022.. £4331. The key management personnel ol the group comprise the key staff identified in the Trustèes, AnnLJal Reporl. The lolal employee benefits of the key management personnel of the gioup were £309,475 12022. £351,157). Staff numbers The average monthly head count wag 118 slaff12022.' 109 slaffj, being 84 12022.. 771 care staff. 17 12022.. 19) fundraising staff, ancl 17 (2022.. 131 adminislralioft Staff. 10 Relalod party transactlons There were no related party transactions during the curcenl or prior ye8r, apart from any disclosed above relating lo the Trustees. 33- THE EAST LANCASHIRE HOSPICE NOTES TO THE FINANCIAL STATEMENTS ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2023 11 Pension commitments The chzrily participates in a mulli-employer defined bènefit scheme. operated through the National Health SeNice. The assets ol the scheme are held separately by the National Hea￿h Service Superannu8lion Scheme. Contributions lo the scheme are charged lo the slalemenl DI financial activities as these are incufred. This pension scheme does not have a real pension fLJnd but, as a slalulory scheme, benefits are fully guaranteed by the Government. Contributions from both members and employers are paid ID the Exchequer, which meet Ihe cos101 increasing benefits each year by the rale of inflation. This extra cost is nol mel by contributions from scheme members and employers. As a result of the nature of the pension scheme, there are no separately idènliliablè assets and liabilities which can be identified as relating to The East Lancashire Hospice. Therefore, as pemiitled by FRS1 Q2, the scheme has been 8¢counled for as a defined ¢onlribulion scheme. The Charity 81so operates a stakeholder defined contribution scheme. The lolel CDnlribulions made during the year represent contributions lo the funds of £204.028 12022". £196,617). Al the year end the charity h8d oulslanding conlribulions of £28,24412022.. £41.9361. 12 Tangible fixèd assets Short Flxtures, Leasehold Fittings, Building EouipmBnt Improvg- & Motor ments vèhicles Charity Subsidiary Total Fixtures, Fitllngs, Equipment & Motor vehicles Group Total Cost Al 1 April 2022 Addition5 Disposals 4,221,719 553,391 29,425 4,775,110 29.425 80,761 4,855,871 29,425 112,8901 112,8901 At 31 March 2023 4,221,719 582,816 4,804,535 67,871 4,872,406 Depreciation Al 1 April 2022 Charge lor the year Eliminated on disposals 2,732,545 63,567 466,219 44,941 3,198,764 108,508 45.993 7.70J 112.8901 3,244,757 116,208 112,8901 At 31 March 2023 2,796,112 511,160 3,307,272 40,803 3,348,075 Net book value At 31 March 2023 1,425,607 71,656 1,497,263 27,068 1.524,331 Al 31 March 2022 1,489,174 87,172 1,576,346 34,768 1,811,114 All tangible fixed assets relate lo unreslricled funds in both 2023 and 2Q122. Al the year end Iheie weie capital commitments of £20,981 12022.. £30,000). THE EAST LANCASHIRE HOSPICE NOTES TO THE FINANCIAL STATEMENTS ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2023 13 Fixed asset investments Group 2023 Charity 2023 2022 2022 Inveslmenls in subsidiary Companies Other investments 100 100 12,057.567 11,715,144 12,057.567 11,715,144 11,715,144 12,057,567 11,715,244 12.057,667 All fixed asset investments relate lo unreslricled funds in both 2023 and 2022. Investments In subsldiary Companleg The charity ow115 the whole of the issued share capital of The East Lancashire Hospice Shops Limilerl (company number 046607031, which is incorporated in England and Wales. The subsidiary is used lor non-primary purpose trading, namely the sale ol donated goods through several shops. All activities have been consolidated on a line by line basis. In the opinion of the Trustees, the investment in Ihe charty's subsidiary undertaking is worth al least the amount al which il is slated in the balance sheet of £100. A summary ol Ihe resuSls for the Irading company as show below.. 2023 2022 Turnover- shop sales Cost of sales 26B,121 121.742) 228,040 124,7571 Gross profit 246.379 203,283 Adminislralive expenses Other operating income 1238,3371 1253.4481 59,731 Profit I Ilossl for the year 8.042 9,566 Amounls gift aided lo charity Retained proflt I Ilossl for the year 8,042 9,566 Retained earnlngs brought forward 128,030) 137,5961 Retalned earnings carried forward (19,9B8) 128,0301 The aggregate ol the assets, liabilities and funds of The East Lancashire Hospice Shops Limited was.. Fixed assets Current assets Current liabilities 27,088 50,423 197,3791 34,768 87,447 1150,1451 Funds 119,8881 127,9301 35- THE EAST LANCASHIRE HOSPICE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023 13 Fixed asset investments Icontlnuedl Olhgr investmènts Group and charity 2023 2022 Maikel valu As al 1 April 2022 Additions Disposals Movement in cash deposits held as investments Change in markèt value 12,057,567 1,072,817 194B,6791 178,876} 1387,6851 9,649,353 1,945,656 1500,0971 86,009 876.646 As al 31 March 2023 11,715,144 12,057,567 Listed investments are represented by., Group and Cl)arlty 2023 2022 Fixed interest Equities Allernalives Property Investment trust and unil Iiusl Cash 702,262 1.615,938 482,280 75.718 8,743,545 95,401 647,611 1.740,8L15 548,663 115,720 8,830,491 174,277 11,715,144 12,057,567 14 Debtors Group 2023 Charity 2023 2022 2022 Trade debtors Prèp8ymenls and accrued income Amounts owed by group undertakings VAT recoverable 76,411 75,223 70,424 284,025 76,411 45,578 83,852 52,638 69,823 221.429 118,213 45,664 55,523 51,475 207,157 405.924 258,479 455,129 All debtors ielale lo unreslricled funds in both 2C>23 and 2022. THE EAST LANCASHIRE HOSPICE NOTES TO THE FINANCIAL STATEMENTS ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2023 15 Creditors: amounts falling due wlthln one year Group 2023 Charlty 2023 2022 2022 Lollery payments in advance Accruals and deferred income Trade Creditors Other taxes and social security 46.722 602,464 81,401 53,239 47,793 632.080 101,758 46.831 46,722 596,653 73,685 53,239 47,793 627,293 74,593 46,831 783,826 828,442 770,299 796,510 All creditors relate lo unreslricled funds in both 2023 2nd 2022. 16 Funds Reslrlcted funds Brought foNawd al 31 March 2022 Income Expenditurè Galns, Carried losses and foNard at transfers 31 March 2023 Support & Wellbeing Co-op Community Funcl IPU facilities 464 1,109 464 1,024 1.630 1851 18,370} 10,000 1,573 10,000 18,4551 3,118 Unrestricted funds Brought forward at 31 March 2022 Income Expenditure Gains, Carrled losses and forward at transfers 31 March 2023 Unreslricled fund Non-charilable Ifading 16,239,740 128,030) 3,208,956 268,121 {3,746,6711 1260,0791 1387,6851 15.314,340 (19,988) 16,211,710 3,477,077 {4,006,7501 1387,685} 16.294,352 Purpose of the restricted funds: Th& Support & Wellbeing fund 15 a palitsnl donation for patient aclivilles. The Co-op Local Communily Fund was funding received for the choir. The IPU facilities Ilind was a donation from The Fort Foundation lo be used towards new facilities within the Inpalienl Unlc. 37- THE EAST LANCASHIRE HOSPICE NOTES TO THE FINANCIAL STATEMENTS ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2023 16 Funds- prior year Restricted lunds Brought forward at 31 March 2021 Income Expendlture Galns, losses and translers Carried fonvard at 31 March 2022 Day Cate Unil Building Sijpport & Lvellbeing NHSE Fliiiding Co-op CoF17nFunily Fiind Yoikshire 811ildii?g Soci81y Chai7lahle Foyndalion 4,384 464 (4,384) 464 339.078 (339,078) 1. 109 1,109 T50 (750) 5,957 339,828 (344,212) 1,573 Unrestrlcted lunds Brought lonvard at 31 March 2021 Income Expendi¢ure Galns, losses and transfers Carried fO￿ard at 31 March 2022 Urireslllcled fiind Non-ch8wil8ble Iradi17g 15,160,314 (37,596) 3, 192,565 (2,989, 785) 287, 771 (278,205) 876,646 16,239,740 (28,030) 15, 122. T18 3,480,336 (3,267,990) 876,646 16,211,710 17 Operating leasg commitments Al 31 March 2023 Ihe group had future rninimum lease payments under non-canc&llable operating leases as sel out below.. Land and buildings 2023 2022 Amounts due within Dn& year Amounts due betrNeen one and five years Amounts due after five years 50,379 116,911 3,999 32,167 12,375 171,289 44,542 -38-