OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

2020-12-31-accounts

Company number: 04120082 Charity Number: 1088475 Scottish Charity number: SC040117

Hospices of Hope Limited

Report and financial statements For the year ended 31 December 2020

Hospices of Hope Limited

Contents

For the year ended 31 December 2020

Reference and administrative information .................................................................................... 1 Trustees’ annual report ................................................................................................................ 3 Independent auditor’s report ...................................................................................................... 21 Consolidated statement of financial activities .............................................................................. 26 Charity statement of financial activities…………………………………………………………………………27 Balance sheets ........................................................................................................................... 28 Consolidated statement of cash flows ......................................................................................... 29 Notes to the financial statements ............................................................................................... 30

Hospices of Hope Limited

Reference and administrative information

For the year ended 31 December 2020

Company number 04120082 Charity number 1088475 (England and Wales) & SC040117 (Scotland)

Registered office and operational address 11 High Street Otford KENT TN14 5PG

Country of registration England & Wales and Scotland Country of incorporation United Kingdom

Trustees Trustees, who are also directors under company law, who served during the year and up to the date of this report were as follows:

Marilyn Boggust (Chair) Rev. Tony Redman (Co-chair) Dr. Jo Hockley OBE Dr. Alison Landon MBE Douglas Paterson Peter Russell Simone Ingram Phil Batson Yapincak Erkan Jim Penberthy Andres Espinosa (resigned 30 November 2020) Frederick Briance (appointed 27 January 2021)

Key management personnel

Alexandru Padureanu Chief Executive Officer (resigned 17 January 2020) Graham Perolls Interim Chief Executive Officer (appointed 17 January 2020) Anna Perolls Interim Chief Executive Officer (appointed 1 January 2021) Carolyn Perolls Trading Company Managing Director Bankers HSBC Bank Plc 1/5 Week Street Maidstone KENT ME14 1QW

1

Hospices of Hope Limited

Reference and administrative information

For the year ended 31 December 2020

Solicitors Latham & Watkins LLP 99 Bishopsgate LONDON EC2M 3XF Auditor Sayer Vincent LLP Chartered Accountants and Statutory Auditor Invicta House 108-114 Golden Lane LONDON EC1Y 0TL

2

Hospices of Hope Limited

Trustees’ annual report

For the year ended 31 December 2020

Our Vision is of a future where all patients who need palliative and/or end of life care in South East Europe are able to live and die with dignity as respected and valued members of their society.

Our Mission is to improve the quality of life for children and adults who need palliative and/or end of life care and provide support for their families in South East Europe by increasing provision and access to palliative care services and training of medical personnel.

Our Aim is to achieve policy changes in Romania, Serbia, Republic of Moldova and Albania that will lead to hospice/palliative care becoming available to a majority of the population. We also aim to influence the governments of the surrounding countries that do not currently have palliative care services, do not fund palliative care services or do not have adequate systems in place to care for those who need palliative or end of life care.

Our Structure

Hospices of Hope is a registered charity in England and Scotland, has two UK offices based in Otford and Edinburgh, a retail subsidiary trading from 17 charity shops in South-East England and Scotland, a branch in Republic of Moldova opened in 2017 and a branch in Albania opened in 2019. We also have a sister charity in New York, USA with 501 (c) 3 non-profit, tax exempt status.

We work through our partner organisations in Romania and Serbia and through our branches in Albania and Republic of Moldova, which support a national network of palliative care teams. Our objective is to enable these organisations to become self-sustainable as soon as practicable. We have a memorandum of understanding in place with each organisation.

We also support other hospice and palliative care organisations in Central and Eastern Europe through the provision of advocacy, technical support and training.

Our Country Partners:

ROMANIA Hospice Casa Sperantei: Brasov, Bucharest, Fagaras, Zarnesti, Copaceni and the “Princess Diana Training Centre”, Brasov Hospice Emanuel, Oradea SERBIA BELhospice, Belgrade REPUBLIC Hospices of Hope Republic of Moldova (branch), “IMSP Spitalul Raional (Cahul)”, “AO OF MOLDOVA Angelus (Ocnita)”, “AO Aripile Sperantei (Orhei)”, “AO Angelus (Soroca)”, “AO Angelus (Taraclia)” ALBANIA Hospices of Hope Albania (branch), Family Healthcare Association – Mary Potter (Korce), Ryder Albania (Tirana and Durrres), ABC Health (Tirana)

3

Hospices of Hope Limited

Trustees’ annual report

For the year ended 31 December 2020

Medical professionals from these countries have been trained:

Armenia, Bosnia, Bulgaria, Czech Republic, Georgia, Greece, Hungary, Kazakhstan, Kosovo, Kyrgyzstan, Macedonia, Montenegro, Poland, Russia, Turkey, Ukraine and Uzbekistan.

Our Purpose

Hospices of Hope serves the needs of patients needing palliative and/or end of life care and their families and carers in Romania, Serbia, Albania and the Republic of Moldova through its partner organisations and branches. The charity has a policy that it will only work with organisations that provide hospice care of a high international standard, free of charge to the beneficiary. Patients are accepted on the basis of need and residential proximity, not on the grounds of race, religion or ability to pay. The education provided to medical professionals is subsidised where possible.

In 2020, despite the pandemic, almost 6,000 patients were able to receive palliative care across our network.

The Trustees have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the charity's aims and objectives and in planning its future activities. In particular, the Trustees consider how planned activities will contribute to the aims and objectives that have been set.

Our Objectives

4

Hospices of Hope Limited

Trustees’ annual report

For the year ended 31 December 2020

Activity Highlights in 2020

In the UK we:

In Romania we:

In Serbia we:

In Republic of Moldova we:

5

Hospices of Hope Limited

Trustees’ annual report

For the year ended 31 December 2020

In Albania we:

Action plan for 2021 onwards

To encourage and assist the growth of palliative care provision in Romania, Serbia, Republic of Moldova, Albania and surrounding countries by providing advocacy, technical expertise, training and funding, in all ways possible but especially by:

In particular to:

Romania

Help sustain and support Hospice Casa Sperantei (‘HCS’) to continue its work based on two main pillars: 1) offering a high standard of palliative care to as many patients as possible and 2) continuing to advocate for the development of palliative care nationally. HCS continues to be the only organisation in Romania offering the full range of palliative care services, all free of charge, meaning that the services strategy for 2021 is focused on sustainability to be achieved through:

6

Hospices of Hope Limited

Trustees’ annual report

For the year ended 31 December 2020

Support advocacy initiatives as HCS continues to be the national leader in palliative education, a Centre of Excellence for the region and a member of the POCA project being led by the Ministry of Health and designed to establish the first national strategy for palliative care in Romania.

Encourage and assist Hospice Emanuel with their development goals including:

Serbia

Help sustain and support BELhospice with their development goals including:

7

Hospices of Hope Limited

Trustees’ annual report

For the year ended 31 December 2020

Republic of Moldova

Help sustain and support our teams in Republic of Moldova and build on our project there by:

Albania

Help sustain and grow the work in Albania by:

General

8

Hospices of Hope Limited

Trustees’ annual report

For the year ended 31 December 2020

The Trustees review the aims, objectives and activities of the charity each year. This report looks at what the charity has achieved and the outcomes of its work in the reporting period. The Trustees report the success of each key activity and the benefits the charity has brought to those groups of people that it is set up to help. The review also helps the Trustees ensure the charity's aims, objectives and activities remained focused on its stated purposes.

Achievements and Performance

Advocacy and Promotion

Advocacy and Promotion
In 2020 weplanned to: In 2020 we: In 2021 weplan to:
Continue to support and
raise awareness of the
development of the
children’s project at
Copaceni.		 Started to raise awareness
but our plans were
interrupted by the
pandemic.		 Continue to support the
development of the services
at Copaceni and help obtain
the additional approvals
needed.
Continue to promote the
national palliative care
strategy for Romania.		 Provided remote support to
our partner but were unable
to be actively involved due
to thepandemic.		 Continue to support the
development of the national
palliative care strategy.

9

Hospices of Hope Limited

Trustees’ annual report

For the year ended 31 December 2020

Find new ways to promote
awareness of the needs of
terminally ill patients in
Romania and the need for
increased funding to match
the increases given to
medical staff in the state
sector.		 Continued to support our
partner remotely but were
unable to be more actively
involved due to the
pandemic.		 Resume lobbying to achieve
a breakthrough in state
funding of palliative care.
Continue with lobbying of
the government in Albania
to achieve a breakthrough in
State funding of palliative
care.		 We were unable to visit the
country due to the
pandemic so this was put on
hold.		 Resume lobbying to achieve
a breakthrough in state
funding of palliative care.
Continue to lobby for
increased funding from the
government in Republic of
Moldova. Find other ways to
raise funds locally.		 Country Manager managed
to attend a series of
meetings with the
government and this
resulted in increased
funding for home care
services.		 Continue negotiations with
Republic of Moldova
government and devise a
new fundraising plan
following an interruption
caused by COVID-19.
Assist the Serbian team with
lobbying the government to
accept non-governmental
organisations as providers
of palliative care.		 Put on hold due to the
pandemic.		 Resume talks with
authorities to find a way
forward for BELhospice to
receive state funding.
Continue to use our
influence wherever possible
in the region to promote
palliative care.		 We were not able to hold
physical meetings during
the pandemic but held a
number of remote meetings.		 Resume physical meetings.
Continue to explore the
possibility of extending
network to Kosovo.		 Were unable to visit Kosovo
but kept in touch with key
stakeholders.		 Re-establish connections in
Kosovo and research the
possibility of starting a
project there.

10

Hospices of Hope Limited

Trustees’ annual report

For the year ended 31 December 2020

Technical Assistance

Technical Assistance
In 2020 weplanned to: In 2020 we: In 2021 weplan to:
Continue to provide advice
and assistance as the
development of the
Copaceni project continues.		 Only limited advice and
assistance provided as the
programme was interrupted
by the pandemic.		 Continue to provide advice
and assistance as the
development of the
Copaceni project
progresses, including the
opening of the Respite
Centre.
Continue to provide advice
and assistance to
BELhospice, particularly in
relation to developing the
first children’s service.		 Advice and assistance
provided throughout the
pandemic in order to help
them adapt to the Covid
restrictions.		 Continue to provide advice
and assistance to
BELhospice particularly
regarding developing the
first children’s service and
the possible provision of in-
patient care.
Continue to assist the
Republic of Moldova team,
particularly in the light of
current economic and
political instability.		 Advice and assistance
provided to the Republic of
Moldovan Country Manager
throughout the pandemic.		 Continue to assist the
Republic of Moldova team
and help them to recover
after the challenges of the
pandemic.
Continue to provide advice
to the Albanian fundraiser
on how to raise funds
locally.		 The Albanian fundraiser was
temporarily laid off due to
the pandemic		 Re-instate the Albanian
fundraiser and resume
advice on how to raise funds
locally.
Continue to provide advice
to Hospice Emanuel on their
capital appeal.		 Unable to make much
progress due to the
pandemic.		 Reconsider how we can help
with the capital appeal.
Continue to provide
fundraising expertise for
Galilee Hospice in Athens,
Greece		 Unable to visit but held on-
line talks.		 Consider whether we can
help Galilee Hospice going
forward.

11

Hospices of Hope Limited

Trustees’ annual report

For the year ended 31 December 2020

Education and Training

In 2020 weplanned to: In 2020 we: In 2021 weplan to:
Continue to support
ongoing training for the
team in Republic of
Moldova.		 We had to cancel all the
planned educational
activities (physical events)
due to the pandemic, but
on-line training continued
in all of the countries.		 We plan to resume the
training activities that were
planned for 2020 in 2021.
Continue to assist with the
training of staff at Copaceni,
as this project is a new
concept in Romania. Find
expert volunteers from the
UK.
Continue to assist with any
training needs identified by
the BELhospice.
Continue to assist with any
training needs identified by
the Albanian teams.
Organise a follow up ostomy
course in association with
the Ostomy Foundation.

Funding

Fundraising policy

The charity uses in-house fundraisers and volunteers. The main sources of income (apart from income generated by the trading company) are charitable events (gala dinner, ladies’ lunches, regular giving, sporting and crowdfunding events, quizzes, corporate giving and legacies). We have a very loyal database of core donors who are supporting our work.

The charity is compliant with The Code of Fundraising Practice which is found on the Fundraising Regulator’s website – we also have a fundraising promise on our website: - https://www.hospicesofhope.co.uk/donor promise

12

Hospices of Hope Limited

Trustees’ annual report

For the year ended 31 December 2020

There have been no instances of non-compliance with any code and we have not received any fundraising-related complaints. The organisation does all it can to protect vulnerable people, this is laid out in our privacy policy: https://www.hospicesofhope.co.uk/privacy-notice

The charity is especially careful and sensitive when engaging with vulnerable people or those we have reason to believe might be vulnerable.

Third party fundraisers notify us of their fundraising activities, and we support them in any way we can; providing materials, literature, speaker if needed, etc. We are in contact with them before and after their activity. The majority of our supporters use online fundraising pages, so the funds raised are received directly by the charity.

The management team has completed a fundraising strategy review, which was approved by the Board in November 2020.

In 2020 weplanned to: In 2020 we: In 2021 weplan to:
Raise £1.2m through
donations, legacies, events
and promotions.		 Achieved the target. Raise £1.2 million through
donations, legacies, events,
retail operations and
promotions.
Raise £107,000 through
retail activities.		 Exceeded target. Raise £148,000 through
charity retail activities and
break even in the first year’s
operation of the newly
reorganised Trading
Company.
Raise £150,000 to support
the running costs in
Romania.		 Achieved target. Raise £170,000 to support
running costs in Romania
HCS.
Raise £100,000 towards the
services at Copaceni.		 Did not achieve this target
as Copaceni had to close for
9 months of the year due to
COVID-19 as all the children
are in the vulnerable
category. Funds from
existing grants were
transferred.		 Raise £100,000 towards the
services at Copaceni.

13

Hospices of Hope Limited

Trustees’ annual report

For the year ended 31 December 2020

Raise funds to support
Hospice Emanuel.
Raise over £50,000 towards
BELhospice running costs.		 Exceeded target. Raise £70,000 towards
BELhospice running costs.
Continue paying grants and
seek new sources of funding
for Albania and Republic of
Moldova.		 Continued paying grants
and secured a new trust
donor.		 Continue paying grants and
seek new sources of
funding.
Organise another series of
summer camps and recruit
new volunteers to generate
income for Hospice Casa
Sperantei and BELhospice.		 Summer Trips were
cancelled due to COVID-19.
Suffered a loss as Ryanair
refused to refund flights
despite government
restrictions.		 Reinstate the summer
camps if COVID-19 allows.
Continue to strengthen the
local fundraising potential
in our network partners.		 Improved regular online
communication including
organising a virtual
fundraising conference.		 Build on the improved
communication and
reinstate visits to our
country partners and
branches to encourage more
fundraising initiatives.
Strengthen the Honorary
Patrons committee in USA
and organise a large event.		 Kept in close virtual contact
with the HPs but had to
cancel the US event in
March.		 Re-invigorate the Honorary
Patrons committee following
the pandemic. Re-instate
the cancelled event in New
York.
Amalgamate the retail part
of the Trading Company
within the charity.		 Completed the integration
of certain retail operations
within the charity to
improve efficiency.		 None.
Carry out the project to
rebuild the Tea Room in
Otford and secure grants
towards the cost.		 Re-building was carried out
and almost completed by
the end of the year. Secured
a number of grants towards
the cost of the rebuild.		 To open the tearoom (to be
renamed the Olive Tree
Bistro and Tearoom) as soon
as COVID-19 restrictions
are lifted,and use the new

14

Hospices of Hope Limited

Trustees’ annual report

For the year ended 31 December 2020

space to increase fundraising events.

The COVID-19 pandemic meant the UK went into lockdown on 23[rd] March 2020. As a result, our fundraising opportunities were radically reduced, particularly in the area of physical events, although a number of “virtual” forms of fundraising were undertaken.

Our charity shops were closed from April to June and part of November and December, which limited our ability to trade. However, we were able to access UK Government support.

The Trustees are aware that future plans will continue to be affected by COVID-19 and our finances and activities are therefore being kept under constant review. Updated cash flow forecasts to mid-2022 (i.e. 12 months from the date of approving the financial statements), taking into account the actual performance for the first four months of the current year, have been reviewed and, notwithstanding the continued uncertainties, the Trustees are of the opinion that the charity has the financial resources to continue in operation for at least 12 months from the date of this report.

N.B The lockdown has continued into 2021 but the Government has made new grants available for the retail and leisure industries and we do not anticipate any change to the forecast above.

The policy on grant making is that all projects that are accepted for assistance must be able to demonstrate that they fulfil the objectives of the charity. Rigorous controls and procedures are in place to ensure that grant money is spent on its intended purpose. Regular reports are received from the projects and the impact of the grants are assessed against our charitable objectives.

We have representatives on the Boards of our network partners (the main beneficiaries of the grants) to ensure a good understanding of the project and ensure that funds are expended properly and within the standards we expect from a partner.

Volunteers

Volunteers provide a valuable additional resource in the trading company, the head office, in summer trips and other events. Their contribution is invaluable.

Financial review

2020 was an exceptionally challenging year due to COVID-19 but, thanks to a number of factors we were able to meet our income budget and fulfil all our commitments to our partners. Firstly we launched a special COVID-19 appeal and received a very generous response from our donors. Secondly, we were able to adapt our fundraising to replace a

15

Hospices of Hope Limited

Trustees’ annual report

For the year ended 31 December 2020

number of physical events with virtual events. Thirdly, we were successful with a number of grant applications and finally we received support from the Government for our retail and trading operations.

Our expenditure was also lower than budgeted due to the support from the Government furlough scheme and other costs were also reduced such as travel to the region, fundraising support costs and office costs.

We also completed the integration of certain retail operations within the charity, which will help streamline future operations. The retail income has been augmented by grants from the government due to COVID-19. This should be taken into account when reviewing the retail operation.

The Trading Company’s activities now comprise the Tea Rooms at our Otford and Faversham Charity Shops which were closed for most of the year due to COVID-19, and the sale of bought-in merchandise in all of our shops.

The financial statements have been prepared in accordance with the accounting policies set out in the notes to the financial statements. The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with FRS 102.

Investment Policy

The charity has a conservative policy on investing surplus cash and it is held on a money market and short-term deposit accounts.

Reserve Policy & Restrictions

The Trustees have adopted a reserves policy of maintaining a minimum of four months’ running costs, in unrestricted charity reserves. This charity reserve is set at this level as income generated from fundraising activities is historically uneven and costs can exceed income for a large part of the year. In their opinion this is sufficient to ensure the charity has the ability to meet its objectives in a sustainable manner.

The charity’s reserves at the end of 2020 were at the level of 4.3 months of running costs.

Risk

The Trustees have a policy in place for the identification and mitigation of risk and for ensuring that an appropriate system of internal control is in place and working effectively. This review takes place at least annually.

16

Hospices of Hope Limited

Trustees’ annual report

For the year ended 31 December 2020

The main risk identified is the ongoing COVID-19 pandemic, which brings with it uncertainty related to our fundraising plans that could affect our income. However, we have learnt a lot from the experience of 2020 and are confident that we can continue to fulfil our commitments to our partners. If the income should suffer then commitments to the various countries could be reviewed in light of the reduced income. Based on these factors we do not consider the uncertainty of fundraising income to have an impact on the going concern of the charity.

Operational risks in Albania and Republic of Moldova are mostly related to the instability of these countries, both economically and politically, which is one of the reasons why we decided to operate through branches in these countries.

The Trustees are carefully monitoring the operations of all the country partners to ensure proper governance is in place.

An important source of income is derived from the shops. There are major challenges from competing charity shops, rising rents, the number of donors for whom we can receive Gift Aid and the future ability to attract competent volunteers. We aim to address this by increasing the level of retail experience represented on the Board of Directors and with increased support from the Finance Committee.

Structure, Governance and Management

The Trustees of the charity provide governance, develop policy, and accept ultimate legal authority for it. The Trustees formulate and regularly review the long and short-term strategic aims of the charity as well as setting specific goals and priorities. The Trustees approve budgets and are responsible for the good stewardship of the charity resources. They work in partnership with the CEO to achieve the charity aims. The Trustees meet at least five times a year and the finance committee meets at least twice a year.

The Hospices of Hope network comprises:

17

Hospices of Hope Limited

Trustees’ annual report

For the year ended 31 December 2020

of understanding with Hospices of Hope, and a Hospices of Hope representative sits on their Board of Trustees

Role of the CEO and Management Team

The CEO provides leadership to employees and is responsible for the operational detail and implementation of the strategic plan and the management of the charity, including control of expenditure in line with budgets and delegations approved by the Board. During the year, the CEO was supported by the Deputy CEO and Fundraising Director, the Finance Director and the Head of Retail and this group formed the Senior Management Team.

The former CEO (Alex Padureanu) resigned in January 2020 and was replaced, on an interim basis, by the previous CEO and Founder (Graham Perolls) until such time as interviews for the position could be arranged. Due to COVID-19, the interviews were still on hold at the year end and the Trustees agreed that the Deputy CEO (Anna Perolls) should undertake the role of Interim CEO with effect from 1 January 2021. Graham Perolls continues to support the Interim CEO on a part time basis.

Structure and governance

The organisation is a charitable company limited by guarantee, incorporated on 6 December 2000 and registered as a charity on 18 September 2001. The company was established under a Memorandum of Association which established the objects and powers of the charitable company and is governed by its Articles of Association.

All Trustees give their time voluntarily and receive no benefits from the charity.

Appointment of Trustees

The Trustees aim to maintain a Board of ten to twelve members with a range of skills and experience. When vacancies in the Board arise, the process is to recruit via recommendation from Trustees and supporters of the charity. New Trustees are then proposed to the Board by the Chairman.

Trustee Induction and Training

Trustees are given the Charity Commission’s booklet about the responsibility of being a Trustee and a summary of the history, personnel and activities of the charity. They are invited on an orientation visit and given further opportunities for training as required.

18

Hospices of Hope Limited

Trustees’ annual report

For the year ended 31 December 2020

Remuneration policy for key management personnel

The remuneration of all staff is delegated to the Chief Executive and the pay is reviewed annually taking into account inflation, market rates and affordability. The Chairman agrees the CEO’s remuneration taking into account the same factors. Where there are family connections, no decision is taken by a family member regarding another family member’s salary or employment terms.

Statement of responsibilities of the Trustees

The Trustees (who are also directors of Hospices of Hope Limited for the purposes of company law) are responsible for preparing the Trustees’ annual report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Company law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and group and of the incoming resources and application of resources, including the income and expenditure, of the charitable company or group for that period. In preparing these financial statements, the Trustees are required to:

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

In so far as the Trustees are aware:

19

Hospices of Hope Limited

Trustees’ annual report

For the year ended 31 December 2020

The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Members of the charity guarantee to contribute an amount not exceeding £1 to the assets of the charity in the event of winding up. The total number of such guarantees at 31 December 2020 was eleven. The Trustees are members of the charity, but this entitles them only to voting rights. The Trustees have no beneficial interest in the charity.

Auditor

Sayer Vincent LLP was re-appointed as the charitable company's auditor during the year and has expressed its willingness to act in that capacity.

The Trustees’ annual report has been prepared in accordance with the special provisions applicable to companies subject to the small companies' regime.

It was approved by the Trustees on 30 June 2021 and signed on their behalf by

Marilyn Boggust Chair

20

Independent auditor’s report

To the members of

Hospices of Hope Limited

Independent auditor’s report to the members of Hospices of Hope Limited

Opinion

We have audited the financial statements of Hospices of Hope Limited (the ‘parent charitable company’) and its subsidiaries (the ‘group’) for the year ended 31 December 2020 which comprise the consolidated and parent charitable company statement of financial activities, the group and parent charitable company balance sheets, the consolidated statement of cash flows and the notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

21

Independent auditor’s report

To the members of

Hospices of Hope Limited

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

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

Other Information

The other information comprises the information included in the Trustees’ annual report, other than the financial statements and our auditor’s report thereon. The Trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees’ annual report.

22

Independent auditor’s report

To the members of

Hospices of Hope Limited

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

Responsibilities of Trustees

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

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

Auditor’s responsibilities for the audit of the financial statements

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

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably

23

Independent auditor’s report

To the members of

Hospices of Hope Limited

be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud are set out below.

Capability of the audit in detecting irregularities

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements

24

Independent auditor’s report

To the members of

Hospices of Hope Limited

or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the charitable company's members as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Fleur Holden (Senior statutory auditor) 21 July 2021

for and on behalf of Sayer Vincent LLP, Statutory Auditor Invicta House, 108-114 Golden Lane, LONDON, EC1Y 0TL

Sayer Vincent LLP is eligible to act as auditor in terms of section 1212 of the Companies Act 2006

25

Hospices of Hope Limited

Consolidated statement of financial activities (incorporating an income and expenditure account)

For the year ended 31 December 2020

Note
Income from:
2
Government grants with regard to Coronavirus
3
Cost of generating donations and legacies 4
Cost of events and promotions
Trading
4
4
4
Transfers between funds
20
10
Reconciliation of funds:
Charitable activities
Funding support & hospice services
Tax (charge)/ credit in trading subsidiary
Net income / (expenditure) for the year and
net movement in funds
Total funds brought forward
Total funds carried forward
Advocacy and promotion
Technical assistance
Total expenditure
Net income / (expenditure) before taxation
Other
Raising funds
Donations and legacies
Investments
Trading turnover & retail gift donations
Events and promotions
Other trading activities
Total income
Expenditure on:
Profit on sale of fixed assets		 Unrestricted
£
502,023
567,161
931,484
31,436
13,923
-
1,698		 Restricted
£
505,166
-
-
34,351
-
-
3,583		 2020
Total
£
1,007,189
567,161
931,484
65,787
13,923
-
5,281
2,590,825
247,296
2,468
1,188,875
9,916
39,663
847,044
2,335,262
-
1,970
257,534
1,076,656
1,334,190
255,564		 Unrestricted
£
326,467
-
1,709,834
110,776
2,326
-
362		 2019
Restricted
Total
£
£
446,799
773,266
-
-
-
1,709,834
76,875
187,651
-
2,326
-
-
-
362
523,674
2,673,439
38,447
303,426
3,740
47,559
-
1,476,307
-
44,333
-
44,333
692,011
918,213
734,198
2,834,171
-
-
-
(1,504)
(210,524)
(162,236)
659,080
1,238,892
448,556
1,076,656
(210,524)
(160,732)
2,047,725 543,100 2,149,765
247,296
2,468
1,188,875
9,916
39,663
351,660		 -
-
-
-
-
495,384		 264,979
43,819
1,476,307
44,333
44,333
226,202
1,839,878 495,384 2,099,973
27,352
1,970
207,848		 (27,352)
-
47,716		 -
(1,504)
49,792
237,170
628,100		 20,364
448,556		 48,288
579,812
865,270 468,920 628,100

All of the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above. Movements in funds are disclosed in Note 20 to the financial statements.

26

Hospices of Hope Limited

Statement of financial activities (incorporating an income and expenditure account)

For the year ended 31 December 2020

Charity only figures

Income from:
Government grants with regard to Coronavirus
Cost of generating voluntary income
Cost of events and promotions
Costs of selling donated goods
Reconciliation of funds:
Total funds brought forward
Total funds carried forward
Transfers between funds
Net income / (expenditure) and net
movement in funds
Events and promotions
Total expenditure
Other
Total income
Expenditure on:
Raising funds
Charitable activities
Advocacy and promotion
Technical assistance
Hospice education
Funding support & hospice services
Profit on sale of fixed assets
Investments
Donation proceeds from donated goods
Other trading activities
Charge to trading company
Donations and legacies
Donation from trading company		 Unrestricted
£
502,023
567,161
110,000
826,443
-
31,436
13,923
-
1,699		 Restricted
£
505,166
-
-
-
-
34,351
-
-
3,583		 2020
Total
£
1,007,189
567,161
110,000
826,443
-
65,787
13,923
-
5,282
2,595,785
247,295
2,468
1,087,035
9,916
39,663
-
847,044
2,233,421
-
1,008,429
1,370,793
362,364		 Unrestricted
£
326,467
-
66,176
297,499
23,400
110,776
3,785
-
362		 2019
Restricted
Total
£
£
446,799
773,266
-
-
-
66,176
-
297,499
-
23,400
76,875
187,651
-
3,785
-
-
-
362
523,674
1,352,139
38,447
303,426
3,740
47,559
-
197,534
-
44,333
-
44,333
-
-
692,011
918,213
734,198
1,555,398
-
-
659,080
1,211,688
448,556
1,008,429
(210,524)
(203,259)
2,052,685 543,100 828,465
247,295
2,468
1,087,035
9,916
39,663
-
351,660		 -
-
-
-
-
-
495,384		 264,979
43,819
197,534
44,333
44,333
-
226,202
1,738,037 495,384 821,200
27,352
559,873
314,648		 (27,352)
448,556
47,716		 -
552,608
7,265
901,873 468,920 559,873

All of the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above. Movements in funds are disclosed in Note 20 to the financial statements.

27

Hospices of Hope Limited

Company no. 04120082

Balance sheets

As at 31 December 2020

As at 31 December 2020
Balance sheets		 As at 31 December 2020
Balance sheets		 As at 31 December 2020
Balance sheets		 Company no. 04120082 Company no. 04120082
2020
2019
Note
£
£
Fixed assets:
11
599,817
426,306
12
-
-
599,817
426,306
Current assets:
14
18,431
35,078
15
187,042
134,953
1,080,517
886,614
1,285,991
1,056,645
Liabilities:
16
(164,388)
(149,703)
1,121,603
906,942
1,721,420
1,333,248
17
(379,230)
(246,622)
18
(8,000)
(9,970)
19
1,334,190
1,076,656
20
468,920
448,556
836,410
364,412
-
130,000
28,860
133,688
Total unrestricted funds
865,270
628,100
1,334,190
1,076,656
Total assets less current liabilities
Stock
Debtors
Funds:
Restricted income funds
Unrestricted income funds:
General funds
Non-charitable trading funds
Designated funds
Creditors: amounts falling due within one year
Net current assets
Total net assets
Creditors: amounts falling due after one year
Provisions for liabilities
Investments
Cash at bank and in hand
Tangible assets
The group
Total funds		 2020
2019
£
£
557,888
373,049
65,451
65,451
623,339
438,500
2,961
9,575
235,177
130,571
1,048,458
779,490
1,286,596
919,636
(159,912)
(103,085)
1,126,684
816,551
1,750,023
1,255,051
(379,230)
(246,622)
-
-
1,370,793
1,008,429
468,920
448,556
901,873
429,873
-
130,000
-
-
901,873
559,873
1,370,793
1,008,429
The charity
599,817
18,431
187,042
1,080,517		 426,306
35,078
134,953
886,614		 623,339
2,961
235,177
1,048,458		 438,500
9,575
130,571
779,490
1,285,991
(164,388)		 1,056,645
(149,703)		 1,286,596
(159,912)		 919,636
(103,085)
1,121,603 906,942 1,126,684 816,551
1,721,420
(379,230)
(8,000)		 1,333,248
(246,622)
(9,970)		 1,750,023
(379,230)
-		 1,255,051
(246,622)
-
1,334,190 1,076,656 1,370,793 1,008,429
468,920
836,410
-
28,860		 448,556
364,412
130,000
133,688		 468,920
901,873
-
-		 448,556
429,873
130,000
-
865,270 628,100 901,873 559,873
1,334,190 1,076,656 1,370,793 1,008,429

Approved by the Trustees on 30 June 2021 and signed on their behalf by

Marilyn Boggust Chair

28

Hospices of Hope Limited

Consolidated statement of cash flows

For the year ended 31 December 2020

Net (expenditure)/income for the reporting period
(as per the statement of financial activities)
Depreciation charges
Dividends and interest from investments
(Profit)/loss on disposal of fixed assets
Decrease/(increase) in stocks
Decrease in debtors
Increase /(decrease) increase in creditors and provisions
Dividends and interest from investments
a
Analysis of cash and cash equivalents and of net debt
Cash at bank and in hand
a
Total cash and cash equivalents
Loans falling due within one year
Loans falling due after more than one year
b
Total net debt
Repayments of mortgage
Proceeds of sale of fixed assets
Cash flows from operating activities
Cash flows from financing activities:
Net cash provided by / (used in) investing activities
Net cash provided by / (used in) operating activities
Cash flows from investing activities:
Purchase of fixed assets
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
Net cash provided by / (used in) financing activities
Change in cash and cash equivalents in the year
New borrowing in year		 £
£
255,564
26,202
(13,923)
5,191
16,647
(52,089)
5,533
243,124
13,923
(204,904)
(190,981)
-
141,760
-
141,760
193,903
886,614
1,080,517
At 1 January
2019
Cash flows
£
£
886,614
193,903
886,614
193,903
14,789
(14,789)
246,622
156,549
261,411
141,760
2020		 £
£
255,564
26,202
(13,923)
5,191
16,647
(52,089)
5,533
243,124
13,923
(204,904)
(190,981)
-
141,760
-
141,760
193,903
886,614
1,080,517
At 1 January
2019
Cash flows
£
£
886,614
193,903
886,614
193,903
14,789
(14,789)
246,622
156,549
261,411
141,760
2020		 £
£
(160,732)
27,077
(2,326)
-
724
1,894
14,899
(118,464)
2,326
(33,584)
(31,258)
(14,272)
-
-
(14,272)
(163,994)
1,050,608
886,614
Other non-
cash
changes
At 31
December
2020
£
£
-
1,080,517
-
1,080,517
15,381
15,381
(15,381)
387,790
-
403,171
2019		 £
£
(160,732)
27,077
(2,326)
-
724
1,894
14,899
(118,464)
2,326
(33,584)
(31,258)
(14,272)
-
-
(14,272)
(163,994)
1,050,608
886,614
Other non-
cash
changes
At 31
December
2020
£
£
-
1,080,517
-
1,080,517
15,381
15,381
(15,381)
387,790
-
403,171
2019
-
141,760
-		 (14,272)
-
-
At 1 January
2019
£
886,614		 Other non-
cash
changes
£
-
193,903
886,614		 (163,994)
1,050,608
1,080,517 886,614
Cash flows
£
193,903		 At 31
December
2020
£
1,080,517
886,614 193,903 - 1,080,517
14,789
246,622		 (14,789)
156,549		 15,381
(15,381)		 15,381
387,790
261,411 141,760 - 403,171

29

Hospices of Hope Limited

Notes to the financial statements

For the year ended 31 December 2020

a) Statutory information

Hospices of Hope (formerly Hospice of Hope Romania) is a charitable company limited by guarantee and is incorporated in the UK. The registered office address and principal place of business is 11 High Street, Otford, Kent, TN14 5PG.

b) Basis of preparation

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) - (Charities SORP FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy or note.

These financial statements consolidate the results of the charitable company and its wholly-owned subsidiary Hospices of Hope Trading Limited a on a line by line basis. Transactions and balances between the charitable company and its subsidiary has been eliminated from the consolidated financial statements. Balances between the companies are disclosed in the notes of the charitable company's balance sheet.

c) Public benefit entity

The charitable company meets the definition of a public benefit entity under FRS 102.

d) Going concern

Covid 19 has had an impact on the activities for the current year, but the Trustees are of the opinion that the impact will not affect the ability of the charity to continue operating as a going concern because of the support of donors and the government throughout the pandemic.

The Trustees do not consider that there are any sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next reporting period.

e) Income

Income is recognised when the group has entitlement to the funds, any performance conditions attached to the income have been met, it is probable that the income will be received and that the amount can be measured reliably.

Income from government and other grants, whether ‘capital’ grants or ‘revenue’ grants, is recognised when the group has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.

Income received in advance of the provision of a specified service is deferred until the criteria for income recognition are met.

30

Hospices of Hope Limited

Notes to the financial statements

For the year ended 31 December 2020

f) Donations of goods, services and facilities

Donated goods, professional services and donated facilities are recognised as income when the charity has control over the item or received the service, any conditions associated with the donation have been met, the receipt of economic benefit from the use by the charity of the item is probable and that economic benefit can be measured reliably. In accordance with the Charities SORP (FRS 102), volunteer time is not recognised so refer to the Trustees’ annual report for more information about their contribution.

On receipt, professional services and donated facilities are recognised on the basis of the value of the gift to the charity which is the amount the charity would have been willing to pay to obtain goods, services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.

Donated goods received which are to be sold are recognised only once sold, with no value attributed to these as stock held at the year end.

The charity receives donated goods for use in its charitable activities. The majority of these gifts are for stoma bags which have no value in the UK and have no identifiable market value in Moldova, although the value to patients is invaluable. Other medical supplies are also difficult to value. Taking this into account the Trustees have concluded that the valuation in the financial statements should not include an amount for them.

g) Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank.

Restricted funds are to be used for specific purposes as laid down by the donor. Expenditure which meets these criteria is charged to the fund.

Unrestricted funds are donations and other incoming resources received or generated for the charitable purposes.

i) Expenditure and irrecoverable VAT

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

j) Grants payable

Grants payable are made to third parties in furtherance of the charity's objects. Single or multi-year grants are accounted for when either the recipient has a reasonable expectation that they will receive a grant and the Trustees have agreed to pay the grant without condition, or the recipient has a reasonable expectation that they will receive a grant and that any condition attaching to the grant is beyond the control of the charity.

Provisions for grants are made when the intention to make a grant has been communicated to the recipient but there is uncertainty about either the timing of the grant or the amount of grant payable.

31

Hospices of Hope Limited

Notes to the financial statements

For the year ended 31 December 2020

Support and governance costs are re-allocated to each of the activities on the following basis which is an estimate, based on staff time, of the amount attributable to each activity

Governance costs are the costs associated with the governance arrangements of the charity. These costs are associated with constitutional and statutory requirements and include any costs associated with the strategic management of the charity’s activities.

l) Operating leases

Rental charges are charged on a straight line basis over the term of the lease.

m) Tangible fixed assets

Items of tangible fixed assets are capitalised where the purchase price exceeds £500. Depreciation costs are allocated to activities on the basis of the use of the related assets in those activities. Assets are reviewed for impairment if circumstances indicate their carrying value may exceed their net realisable value and value in use.

Depreciation is provided at rates calculated to write down the cost of each asset to its estimated residual value over its expected useful life. The depreciation rates in use are as follows:

n) Investments in subsidiary

Investment in subsidiary is at cost.

o) Stocks

Stocks are stated at the lower of cost and net realisable value. In general, cost is determined on a first in first out basis and includes transport and handling costs. Net realisable value is the price at which stocks can be sold in the normal course of business after allowing for the costs of realisation. Provision is made where necessary for obsolete, slow moving and defective stocks.

p) Debtors

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

q) Cash at bank and in hand

Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

32

Hospices of Hope Limited

Notes to the financial statements

For the year ended 31 December 2020

s) Financial instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

t) Pensions

The charity provides a defined contribution pension scheme for staff. The assets of the scheme are held separately from those of the charitable company in an independently administered fund. The pension cost charge represents contributions payable under the scheme by the charitable company to the fund. The charitable company has no liability under the scheme other than for the payment of those contributions.

2a Income from donations and legacies (current year)

Businesses
Donations from individuals (including gift aid)
Legacies
Churches, schools and community groups
Other trusts		 Unrestricted
£
371,132
-
14,590
69,401
46,900
502,023		 2020
Restricted
Total
£
£
191,642
562,774
8,461
8,461
4,100
18,690
40,611
110,012
260,352
307,252
505,166
1,007,189

2b Income from donations and legacies (prior year)

Churches, schools and community groups
Businesses
Donations from individuals (including gift aid)
Legacies (UK & Moldova)
Other trusts		 Unrestricted
£
125,284
90,000
18,906
29,766
62,511
326,467		 2019
Restricted
Total
£
£
142,352
267,636
29,202
119,202
6,538
25,444
25,369
55,135
243,338
305,849
446,799
773,266

33

Hospices of Hope Limited

Notes to the financial statements

For the year ended 31 December 2020

3a
3b
Fundraising events (Moldova and Albania)
Travel and insight events
Fundraising events (Moldova and Albania)
Events and promotions (current year)
Fundraising events (UK)
Events and promotions (prior year)
Fundraising events (UK)
Travel and insight events		 Unrestricted
£
31,426
-
10
31,436
Unrestricted
£
102,340
-
8,436
110,776		 Restricted
£
25,376
8,975
34,351
Restricted
£
38,270
38,605
-
76,875		 2020
Total
£
56,802
-
8,985
65,787
2019
Total
£
140,610
38,605
8,436
187,651

34

Hospices of Hope Limited

Notes to the financial statements

For the year ended 31 December 2020

4a Analysis of expenditure (current year)

Charitable activities

Staff costs (Note 6)
Moldova branch costs
Albania branch costs
Transfers and equipment
Travel
Premises
Interest payable
Grants payable (Note 8)
Other costs
Legal and professional fees
Exchange rate losses
Support costs
Governance costs
Total expenditure 2020
Total expenditure 2019		 Raising
funds
£
785,252
-
-
-
3,317
310,298
-
-
282,727
17,456
-
1,399,050
32,709
6,880
1,438,639
1,827,291		 Advocacy
and
promotion
£
8,976
-
-
-
-
-
-
-
-
-
-
8,976
777
163
9,916
44,333		 Technical
assistance
£
35,904
-
-
-
-
-
-
-
-
-
-
35,904
3,106
653
39,663
44,333		 Funding
support &
hospice
services
£
50,938
165,098
8,000
20,241
2,048
-
-
524,621
9,039
-
(7,419)
772,566
61,535
12,943
847,044
918,213		 Governance
costs
£
-
-
-
-
139
-
-
-
-
20,500
-
20,639
-
(20,639)
-
-		 Support
costs
£
37,322
-
-
-
-
3,250
8,806
-
40,724
8,025
98,127
(98,127)
-
-
-		 2020 Total
£
918,392
165,098
8,000
20,241
5,504
313,548
8,806
524,621
332,490
45,981
(7,419)
2,335,262
-
-
2,335,262
-		 2019
Total
£
1,101,972
184,395
47,203
22,073
41,034
507,619
10,095
498,338
374,824
28,801
17,817
2,834,171
-
-
-
2,834,171

35

Hospices of Hope Limited

Notes to the financial statements

For the year ended 31 December 2020

4b Analysis of expenditure (prior year)

Charitable activities

Staff costs (Note 6)
Moldova branch costs
Albania branch costs
Transfers and equipment
Travel
Premises
Interest payable
Grants payable (Note 8)
Other costs
Legal and professional fees
Exchange rate losses
Support costs
Governance costs
Total expenditure 2019		 Raising
funds
£
911,205
37,070
-
-
24,872
492,133
-
-
298,943
13,950
-
1,778,173
37,958
11,160
1,827,291		 Advocacy
and
promotion
£
35,768
-
-
-
4,595
-
-
-
-
-
-
40,363
3,068
902
44,333		 Technical
assistance
£
35,768
-
-
-
4,595
-
-
-
-
-
-
40,363
3,068
902
44,333		 Funding
support &
hospice
services
£
47,690
147,325
47,203
22,073
6,924
-
-
498,338
41,499
780
17,817
829,649
68,442
20,122
918,213		 Governance
costs
£
17,262
-
-
-
-
-
-
-
3,204
12,621
-
33,087
-
(33,087)
-		 Support
costs
2019 Total
£
£
54,279
1,101,972
-
184,395
-
47,203
-
22,073
48
41,034
15,486
507,619
10,095
10,095
-
498,338
31,178
374,824
1,450
28,801
-
17,817
112,536
2,834,171
(112,536)
-
-
-
-
2,834,171

36

Hospices of Hope Limited

Notes to the financial statements

For the year ended 31 December 2020

This is stated after charging:

This is stated after charging:
2020 2019
£ £
Depreciation 26,202 27,077
Loss on disposal of fixed assets 5,193 -
Operating lease rentals:
Property 260,703 353,740
Auditor's remuneration (excluding VAT):
Audit 20,500 16,995
Other services - 4,350

6 Analysis of staff costs, Trustee remuneration and expenses, and the cost of key management personnel

Staff costs were as follows:

Social security costs
Employer’s contribution to defined contribution pension schemes
Salaries and wages
Redundancy and termination costs		 2020
2019
£
£
854,457
1,016,104
-
13,509
50,287
57,623
13,648
14,736
918,392
1,101,972

No employee earned more than £60,000 during the year (2019: nil).

The total employee benefits (including pension contributions and employer's national insurance) of the key management personnel were £141,274 (2019: £167,923).

The charity Trustees were neither paid nor received any other benefits from employment with the charity, or from expenses in the year (2019: £nil). No charity trustee received payment for professional or other services supplied to the charity (2019: £nil).

7 Staff numbers

The average number of employees (head count based on number of staff employed) during the year was 66 (2019: 80).

8 Grants Payable

Adunatii Copaceni renovation
Hospice Casa Speranti
Hospice Emmanuel
Serbian Hospice
Albania		 2020
2019
£
£
109,432
132,296
153,899
69,488
17,986
-
110,335
57,837
132,969
238,717
524,621
498,338

9 Related party transactions

Aggregate donations from connected parties were £7,961, £200 of which was restricted (2019: £12,963).

Graham Perolls was acting CEO of Hospices of Hope, during the year. His wife and two children are also employed by the charity.

37

Hospices of Hope Limited

Notes to the financial statements

For the year ended 31 December 2020

10 Taxation

The charity is exempt from corporation tax as all its income is charitable and is applied for charitable purposes. The charity's trading subsidiary Hospices of Hope Trading Ltd gift aids available profits to the parent charity. Its corporation tax in the year was:

Profit for the year before tax
Other
Tax on results on ordinary activities
Less Gift Aid to be paid
Profit chargable to tax
UK corporation tax at 19% (2019: 19%)
Deferred taxation: (charge)/credit
Add back depreciation and other disallowable costs
Less capital allowances		 2020
2019
£
£
3,202
108,835
3,966
15,521
4,438
(6,024)
(722)
173
10,884
118,505
(10,884)
(118,505)
-
-
1,970
(1,504)
1,970
(1,504)

Tax on results on ordinary activities

38

Hospices of Hope Limited

Notes to the financial statements

For the year ended 31 December 2020

11 Tangible fixed assets

At the start of the year
Additions in year
Cost
The group
Disposals in year
Eliminated on disposal
At the end of the year
At the end of the year
At the start of the year
Charge for the year
At the end of the year
At the start of the year
Depreciation
Net book value		 Freehold
property
£
477,383
155,826
-		 £
121,680
5,894
(34,312)
Leasehold
improvements		 Office
equipment
£
45,181
43,184
(480)		 Fundraising
equipment
£
6,069
-
-		 Total
£
650,313
204,904
(34,792)
633,209 93,262 87,885 6,069 820,425
110,649
9,325
-		 79,661
9,413
(29,169)		 30,095
6,847
(432)		 3,602
617
-		 224,007
26,202
(29,601)
119,974 59,905 36,510 4,219 220,608
513,235 33,357 51,375 1,850 599,817
366,734 42,019 15,086 2,467 426,306

£513,235 (2019: £366,734) of freehold land and buildings, in both the group and the charity, has been pledged as security for a mortgage liability.

Net book value
At the end of the year
Depreciation
Additions in year
Disposals in year
The charity
Cost
At the start of the year
At the start of the year
At the end of the year
At the end of the year
Charge for the year
At the start of the year		 Freehold
property
£
477,383
155,826		 Leasehold
Improvements
£
-
121,454
(34,312)		 Office
equipment
£
12,229
1,800
-		 Fundraising
equipment
£
6,069
18,614
(480)		 Total
£
495,681
297,694
(34,792)
633,209 87,142 14,029 24,203 758,583
110,649
9,325
-		 -
84,782
(29,169)		 8,381
1,646
-		 3,602
11,911
(432)		 122,632
107,664
(29,601)
119,974 55,613 10,027 15,081 200,695
513,235 31,529 4,002 9,122 557,888
366,734 - 3,848 2,467 373,049

39

Hospices of Hope Limited

Notes to the financial statements

For the year ended 31 December 2020

12 Subsidiary undertaking

The charitable company owns the whole of the issued ordinary share capital of Hospices of Hope Trading Limited, a company registered in England. The shares are valued in the accounts at the original nominal value in 2007 plus the amount retained as net assets at the date of acquisition, plus an additional £20,000 invested in shares in 2016.

Charity
2020 2019
£ £
Shares in Hospices of Hope Trading Limitied 65,451 65,451

The subsidiary is used to raise money for the charity. All activities have been consolidated on a line by line basis in the statement of financial activities. Available profits are gift aided to the charitable company. A summary of the results of the subsidiary is shown below: The results in the consolidated SOFA exclude intergroup transactions and include donated goods sold for gift aid as well as the gift aid received.

Administrative expenses
Other operating income
The aggregate of the assets, liabilities and reserves was:
Assets
Liabilities
Profit for the financial year
Deferred tax (charge)/credit
Profit on ordinary activities before tax
Net assets
Operating profit
Interest payable
Turnover
Cost of sales
Gross profit		 2020
£
105,042
(44,595)		 2019
£
1,593,741
(883,496)
60,447
(56,409)
-		 710,245
(615,878)
16,125
4,038
(836)		 110,492
(1,657)
3,202
1,970		 108,835
(1,504)
5,172 107,331
90,781
(61,921)		 333,095
(199,407)
28,860 133,688

The trading company made sales of £Nil (2019 - £237,993) on behalf of the charity under the retail gift aid donation scheme. The trading company made a charge of £Nil (2019 - £197,534) to the charity for processing these sales on their behalf.

40

Hospices of Hope Limited

Notes to the financial statements

For the year ended 31 December 2020

13 Parent charity

The parent charity's gross income and the results for the year are disclosed as follows:

14
15
Other debtors
Due from group entities
Gross income
Result for the year
Goods for resale
Gift aid recoverable
Stock
Debtors
Prepayments		 2020
2019
£
£
18,431
35,078
18,431
35,078
2020
2019
£
£
22,511
19,413
-
-
82,686
11,156
81,845
104,384
187,042
134,953
The group
The group		 2020
2019
£
£
18,431
35,078
18,431
35,078
2020
2019
£
£
22,511
19,413
-
-
82,686
11,156
81,845
104,384
187,042
134,953
The group
The group		 2020
£
2,595,785
362,364		 2019
£
1,352,139
(203,259)
187,042 134,953

£23,000 of the amount due from group entities is due in more than one year (2019: £23,000).

16 Creditors: amounts falling due within one year

Creditors: amounts falling due within one year
Bank loans
Taxation and social security
Other creditors
Accruals
Due to group entities
Other loans		 2020
2019
£
£
15,000
15,000
23,941
14,789
-
-
12,980
18,480
81,364
92,919
31,103
8,515
164,388
149,703
The group		 2020
2019
£
£
15,000
15,000
23,941
14,789
-
48,083
12,491
6,753
77,377
9,945
31,103
8,515
159,912
103,085
The charity
164,388 149,703

41

Hospices of Hope Limited

Notes to the financial statements

For the year ended 31 December 2020

Creditors: amounts falling due after one year
Mortgage on 11 - 13 High Street, Otford 2020
2019
£
£
379,230
246,622
379,230
246,622
The group		 2020
2019
£
£
379,230
246,622
379,230
246,622
The charity
379,230 246,622

Security of £246,110 (2019: £261,411) has been given by the group in relation to the mortgage creditor in note 15 and 16 by the following:

▪
▪
▪
a cross guarantee; and
first fixed legal charge with full title guarante
a negative pledge.		 e over the freehold interest in t e over the freehold interest in t he property;
Loan maturity analysis
In under one year
In more than five years
In more than two years but not more than five years
In more than one year but not more than two years		 2020
2019
£
£
38,941
14,789
29,500
15,381
92,234
49,734
257,496
181,507
418,171
261,411
The group		 2020
2019
£
£
38,941
14,789
29,500
15,381
92,234
49,734
257,496
181,507
418,171
261,411
The charity
418,171 261,411

18 Provisions - Group

Provisions - Group
At the end of the year
At the start of the year
Provided for in the year
The Charity does not have any provisions for liabilities.
Provision for tax has been made in the trading subsidiary.		 Deferred
tax liability
£
9,970
(1,970)		 Total
£
9,970
(1,970)
8,000 8,000

19a Analysis of group net assets between funds (current year)

Analysis of group net assets between funds (current year)
Net assets at 31 December 2020
Analysis of group net assets between funds (prior year)
Tangible fixed assets
Net current assets
Long term liabilities
Provisions for liabilities
Net assets at 31 December 2019
Tangible fixed assets
Provisions for liabilities
Long term liabilities
Net current assets		 General
unrestricted
£
599,817
652,683
(379,230)
(8,000)		 Restricted
funds
£
-
468,920
-
-		 Total funds
£
599,817
1,121,603
(379,230)
(8,000)
865,270 468,920 1,334,190
General
unrestricted
£
426,306
458,386
(246,622)
(9,970)		 Restricted
funds
£
-
448,556
-
-		 Total funds
£
426,306
906,942
(246,622)
(9,970)
628,100 448,556 1,076,656

19b Analysis of group net assets between funds (prior year)

42

Hospices of Hope Limited

Notes to the financial statements

For the year ended 31 December 2020

20a Movements in funds (current year)

Movements in funds (current year)
Otford building
Total restricted funds
General funds
Designated funds
Non-charitable trading funds
Unrestricted funds:
Bagpuss
Restricted funds:
Serbia
Total unrestricted funds
Summer Camps
Bucharest Children's Centre
Moldova BMS Grant
Hospice Casa Sperantei
Albania
Moldova - Medicor & other income
Medicor Grant Children's Centre
Total funds
Serbia Country Manager		 £
13,150
(16)
44,681
48,120
15,408
7,080
123,448
133,629
62,873
-
183
At 1
January
2020		 £
28,947
32,051
54,230
44,738
135,284
9,572
9,596
-
187,549
28,461
12,672
Income &
gains		 £
(43,206)
(31,696)
(60,197)
(43,554)
(71,659)
(7,339)
(82,454)
-
(144,084)
-
(11,195)
Expenditure
& losses		 £
£
1,109
-
-
339
-
38,714
-
49,304
-
79,033
-
9,313
-
50,590
-
133,629
-
106,338
(28,461)
-
-
1,660
(27,352)
468,920
267,352
836,410
(130,000)
-
(110,000)
28,860
27,352
865,270
-
1,334,190
At 31
December
2020
Transfers
448,556 543,100 (495,384)
364,412
130,000
133,688		 1,942,683
-
105,042		 (1,738,037)
-
(99,870)
628,100 2,047,725 (1,837,907)
1,076,656 2,590,825 (2,333,291)

The narrative to explain the purpose of each fund is given at the foot of the note below.

20b Movements in funds (prior year)

Movements in funds (prior year)
Total restricted funds
General funds
Non-charitable trading funds
Restricted funds:
Serbia
Serbia Country Manager
Unrestricted funds:
Total unrestricted funds
Total funds
Albania
Bagpuss
Moldova - Medicor & other income
Moldova BMS Grant
Bucharest Children's Centre
Medicor Grant Children's Centre
Hospice Casa Sperantei
Summer Camps
Designated funds		 £
18,252
8,228
91,719
7,275
11,850
1,649
12,110
243,607
264,390
-
At 1
January
2019		 £
12,674
31,776
90,582
87,455
51,119
51,004
110,878
-
86,626
1,560
Income &
gains		 £
(15,616)
(42,180)
(137,620)
(46,610)
(22,480)
(45,573)
460
(135,059)
(288,143)
(1,377)
Expenditure
& losses		 £
£
(2,160)
13,150
2,160
(16)
-
44,681
-
48,120
(25,081)
15,408
-
7,080
-
123,448
25,081
133,629
-
62,873
-
183
-
448,556
190,868
364,412
-
130,000
(190,868)
133,688
-
628,100
-
1,076,656
Transfers
At 31
December
2019
659,080 523,674 (734,198)
357,279
130,000
92,533		 439,931
-
1,709,834		 (623,666)
-
(1,477,811)
579,812 2,149,765 (2,101,477)
1,238,892 2,673,439 (2,835,675)

43

Hospices of Hope Limited

Notes to the financial statements

For the year ended 31 December 2020

Purposes of restricted funds

Serbia - Funds for Serbia are donated to meet some of the costs of running BELhospice in Belgrade which was launched in June 2005.

Serbia Country Manager - An individual has committed to support the Country Manager based in Belgrade.

Serbia New Hospice - The appeal to build the first hospice unit with integrated palliative care services in Serbia.

Moldova BMS - The fund is attached to a grant from BMS Foundation, the purpose of the project is to develop a national network of palliative care. This particular fund covers the expenses of two hospice teams in the south of the country.

Hospice Casa Sperantei - Funds to support the work of our partner in Romania in Brasov, Bucharest, Fagaras and Zarnesti.

Summer Camps - This fund is used to set up and run summer camps and holiday clubs run in Romania for patients and children who have been bereaved in previous years. The fund pays for these children to travel to and attend the activity weeks.

Bucharest Children Centre - The children's hospice is founded at Adunatii Copaceni, 18km south of Bucharest. The land and buildings were donated by the Florescu family in 2012.

Medicor Grant Children's Centre - The fund was attached to a grant from the Medicor Foundation, for the support and development of a ground breaking centre for vulnerable children and their families.

Albania - The fund was created to support the development of a national network for palliative care, replicating the succesful model from Moldova.

Otford Build- This relates to funds provided for the Otford Bistro. These funds were spent during the year as part of the larger project. The balance has therefore been released from restricted funds.

Bagpuss - Funds generated with regard to the Bagpuss rights are restricted for the children's work in Romania.

Designated fund - The Trustees had designated £130k towards the refurbishment of Otford. This has been spent in the year.

44

Hospices of Hope Limited

Notes to the financial statements

For the year ended 31 December 2020

21 Operating lease commitments

The group's total future minimum lease payments under non-cancellable operating leases is as follows for each of the following periods:

following periods:
Over five years
Less than one year
One to five years		 2020
2019
£
£
227,750
357,740
544,895
1,036,072
148,500
1,027,396
921,145
2,421,208
Property		 2020
2019
£
£
-
-
-
-
-
-
-
-
Equipment
921,145 2,421,208

The charity's total future minimum lease payments under non-cancellable operating leases is as follows for each of the following periods:

following periods:
One to five years
Less than one year
Over five years		 2020
2019
£
£
227,750
333,740
544,895
940,772
148,500
-
921,145
1,274,512
Property		 2020
2019
£
£
-
-
-
-
-
-
Equipment
921,145 1,274,512

22 Legal status of the charity

The charity is a company limited by guarantee and has no share capital. The liability of each member in the event of winding up is limited to £1.

45