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2023-12-31-accounts

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

Hospices of Hope Limited

Report and consolidated financial statements For the year ended 31 December 2023

Hospices of Hope Limited

Contents

For the year ended 31 December 2023

Reference and administrative information Trustees’ annual report

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Chair and Chief Executive’s Report 3 Our reason for being Our Vision, Mission and Aims Our Structure Our Purpose 2023 Activity 2024 Plans Finance & Risk Review Structure Governance & Management Statement of Responsibilities of Trustees Independent auditor’s report 33 Consolidated statement of financial activities 38 Balance sheets 39 Consolidated statement of cash flows 40 Notes to the financial statements 41

Hospices of Hope Limited

Company number 04120082 (England and Wales)
Charity number 1088475 (England and Wales) & SC040117 (Scotland)
Registered office and 11 High Street
operational address Otford
KENT
TN14 5PG
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:
Rev. Tony Redman
Dr. Alison Landon MBE
Peter Russell
Simone Ingram
Frederick Briance
Rick Woodward
Stephanie Storer
David Grace
Yapincak Erkan
Andreea Petreanu (appointed 5 June 2023)
Dr. Sioned Evans (appointed 5 June 2023)
Denis Keefe (appointed 5 June 2023)
David Goldsborough (appointed 5 June 2023)
Key management Anna Perolls - Chief Executive Officer
Personnel Graham Perolls CMG, OBE - Development Director
Carolyn Perolls - Trading Company Managing Director/Head of Retail
Jess McKechie – Donor Relations Manager
Julie Easy – Fundraising Manager
Sue Nicklin - Finance Manager
Bankers HSBC Bank Plc
1/5 Week Street
Maidstone
KENT
ME14 1QW

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Hospices of Hope Limited Reference and administrative information

For the year ended 31 December 2023

Solicitors Latham & Watkins LLP 99 Bishopsgate LONDON EC2M 3XF Independent auditor Lindeyer Francis Ferguson Limited, North House, 198 High Street Tonbridge, Kent, TN9 1BE

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Hospices of Hope Limited Trustees’ Annual Report For the year ended 31 December 2023

Chair and Chief Executive’s Report

Firstly, we wish to express our sincere gratitude to our donors and funders for their unwavering support throughout 2023, which has been instrumental in enabling Hospices of Hope carry out its mission.

We were able to distribute £694,036 in grants to our hospice partners and via our Moldovan branch, which helped them advance their objective of increasing access to palliative care for children and adults in their countries of operation.

The past year has seen good progress made by each of our partners, details of which are detailed below. Particularly notable achievements included the successful opening of a day care centre in Chi ş in ă u, the capital of the Republic of Moldova; BELhospice in Serbia hosting its largest fundraising event to date; and the start of construction of a new children’s hospice in Romania.

In the UK, our efforts focused on strengthening the provision of palliative care in South & East Europe. We have facilitated training opportunities, organised meetings with health ministries and fostered connections between our partners with the aim of sharing best practice.

A large number of fundraising events were held throughout the year, including another successful annual Gala Dinner. More than 14% of our income was received through the generous support of Trusts and Foundations and our charity shops achieved a record financial performance, raising a profit of over £400,000.

This level of success was all the more noteworthy when considered against a backdrop of an extremely challenging economic and geopolitical climate where higher costs of living and competing demands for support across the globe have impacted donors’ ability to maintain traditional levels of funding. Substantial increases in the day-to-day costs of our hospice partners and an ever-growing demand for their services, only served to reinforce the importance of the support we are able to provide.

Our hospice charity partner in Ukraine faces a serious lack of funding. Hospices in Ukraine have traditionally relied on government funding to pay medical staff and to cover essential costs like utilities and medication. However, due to the war, this funding has been gradually reduced and the Ministry of Health has just announced another 22% cut. This is a critical time. Prior to the war, 19 independent hospices operated in the country. Of those, only five remain, two of which (Ivano-Frankivsk Regional Palliative Care Centre and the Nadvirna First Children's hospice) are our partner hospices.

Now more than ever, it is crucial that we intensify our fundraising efforts; continue to advocate for financial support for palliative care from the national governments where our partners operate; and further develop the medical capability and expertise to provide support, comfort and dignity for those with life-limiting illnesses.

We would also like to thank our staff and volunteers for their commitment, enthusiasm and continued support. We look forward to another successful year.

Rev. Tony Redman Anna Perolls Chair CEO

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Hospices of Hope Limited

Trustees’ Annual Report

For the year ended 31 December 2023

OUR REASON FOR BEING

In the UK, we are incredibly fortunate to have such good end-of-life care services and a comprehensive national government strategy. The UK is consistently rated first in the “Quality of Death Index”, which ranks countries by how well they care for the physical and mental needs of patients at the end-of-life. By contrast, Ukraine ranks 69 out of 81.

The UK was the birthplace of the modern hospice movement, which takes a holistic approach to a patient’s wellbeing: care for their physical, emotional, spiritual and social needs. Palliative care is now widely understood and accepted in the UK, but unfortunately this is not the case in most of South & East Europe.

Greece, Albania and Serbia receive no state funding for palliative care whatsoever. Our other partners receive, on average, less than 30% of their overall budget through state funding, and often the money provided is only for specific services. Our hospice partner in Romania, Hospice Casa Sperantei, is still the only organisation in the country that provides the whole range of palliative care services for both adults and children: in-patient care, day care, out-patient clinics and bereavement services. However, thanks largely to the palliative care training programmes run at their Princess Diana Palliative Care Education Centre, there are now more than 100 organisations in Romania that offer some elements of palliative care.

Hospices of Hope has a vital role to play in continuing its part to develop better access to palliative care services in the region, using its knowledge, advocacy skills, fund raising and networking experience. Medical professionals and other key individuals in the region are very keen to benefit from the experience of the UK in developing hospice services and are particularly grateful for any funding that can help them pioneer and grow their services.

It is indeed sometimes hard to work in this region, which has so many challenges socially, economically and politically. However, it is an enormous privilege to be able to make a difference to the lives of some of the most disadvantaged citizens in Europe.

Our Vision, Mission and Aims

We have a Vision of a future where all patients who need palliative and/or end of life care in South and 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 and 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, Albania, Greece and Ukraine 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 and/or end of life care.

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Hospices of Hope Limited Trustees’ Annual Report

For the year ended 31 December 2023

We fulfill our vision, mission and aim by:

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 (14 in South-East England and 3 in Scotland) and a branch in Republic of Moldova opened in 2017. The branch is managed by the local Country Manager (who reports to the Development Director) and is governed by the same Board of Trustees in the UK. We also have a sister charity in New York, USA with 501 (c) 3 non-profit, tax-exempt status and its own separate Board of Trustees. The mission of the American charity is identical to the UK based charity, but they are separate legal entities. Two of our UK team members sit on the American Board.

We work through our partner organisations in Romania, Serbia, Albania, Greece and Ukraine and through our branch in Republic of Moldova, which provides a day care service in the capital, Chisinau and supports a national network of palliative care teams across the country. 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 (HCS): Brasov, Bucharest, Fagaras, Zarnesti, Adunatii Copaceni and the “Princess Diana Training Centre”, Brasov Hospice Emanuel (HE), Oradea SERBIA BELhospice (BH), Belgrade REPUBLIC Hospices of Hope Republic of Moldova (HofHM) – branch (Chisinau) OF MOLDOVA “AO Angelus (Ocnita)”, “AO Aripile Sperantei (Orhei)”, “AO Angelus (Soroca)”, “AO Angelus (Taraclia)” ALBANIA Ryder Albania (RA) (Tirana and Durres) and ABC Health (Tirana) GREECE Merimna, Athens (M) Nosilia, Athens (N) UKRAINE St. Panteleymon Charity Fund (Ivano-Frankivsk Regional Palliative Care Group – IF and Nadvirna Children’s First Hospital)

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Hospices of Hope Limited

Trustees’ Annual Report

For the year ended 31 December 2023

Our Purpose

Hospices of Hope serves the needs of patients needing palliative and/or end of life care, their families and carers, in Romania, Serbia, Republic of Moldova, Albania, Greece and Ukraine through both its fundraising and other activities in the UK and elsewhere and also its partner organisations and branch. 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 based on need and residential proximity, not on the grounds of race, religion or ability to pay. The education provided to medical professionals is subsidised by the charity where possible.

In 2023, despite the continuation of Russia’s invasion of Ukraine, over 8,000 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.

ACTIVITY HIGHLIGHTS IN 2023

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 remain focused on its stated purposes.

UK:

Each of our hospice partners received our financial support in 2023. Although the year came with its challenges, our mission endured and we were delighted that our country partners were able, not only to continue to operate successfully but also to increase the services they provide and the number of people they are able to support.

Albania:

The existing services in Tirana and Durres were supported and sustained for another year. The team were also able to move offices allowing them to focus on opening a day care / outpatient unit.

Greece:

Both partners attended an event with the British Ambassador, organised by Hospices of Hope, to raise awareness of their vital work. Nosilia employed their first social worker, which was a high priority for them, and Merimna received an award for ‘NGO of the Year’ in the country’s ‘Responsible Business Awards’.

Moldova:

Hospices of Hope Moldova were able to open a day care centre in the capital, Chisinau, which will allow better access to palliative care in the surrounding area. The Minister of Health has been very supportive and hopes to help us further. The team also received approval to offer home-care services in Chisinau. Nurse Ludmila visited Hospices of Hope in the UK, and other organisations here, to further her knowledge of palliative care and deliver training in Moldova.

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Hospices of Hope Limited

Trustees’ Annual Report

For the year ended 31 December 2023

Romania:

Hospice Casa Sperantei began their campaign for a children’s hospice at Copaceni and have started the process of developing plans to increase the capacity of the hospice centre in Brasov. Emanuel Hospice focused on building their hospice centre in Oradea. We have been able to support their fundraising, whilst this is ongoing, and covered the salary of their fundraiser.

Serbia:

Serbia held their largest ever Gala Dinner this year, a 500-person event at the White Palace – over 150,000 Euros were raised by this event, which was attended by CEO Anna Perolls and our patron the Duchess of Norfolk.

Interest in, and awareness of, palliative care in Serbia is growing. Our founder, Graham Perolls, spoke in October at a palliative care conference in Novi Sad which was attended by 120 doctors.

The children’s care services continue, most of the cases are extremely complex and specialist care is gratefully received as families would have nowhere else to turn. We arranged for the BELhospice pediatrician to visit a children’s hospice in Scotland to further his knowledge, and members of the hospice team also visited an Austrian Children’s Hospice on a trip financed by World Bank.

Ukraine:

Renovations have begun on the Regional Centre of Palliative Care building so that it is more comfortable for patients. It was last renovated in 2005. Palliative care in Ukraine presents unique challenges at this time, with the team having to address the care needs of a significant number of severely injured servicemen and women, in addition to addressing substantial bereavement issues.

In December, a local church in Kent funded a generator for Nadvirna First Children’s Hospice, which will be a great help when blackouts occur, by providing heat, light and in some cases, life support.

Advocacy and Promotion

We aim to use our experience and knowledge to help achieve policy changes that will lead to hospice care becoming available to the majority of those who need it in all our partner countries. We also draw on the experience of our network partners who have already achieved success in these areas. Hospice care is a fairly new concept in this region and our successes have included for example: establishing the first palliative care service for adults and children in Romania (1992) and assisting our partner, Hospice Casa Sperantei, to have palliative care recognised as a medical specialty in its own right (2011). In the majority of countries where we work, we have paved the way for non-governmental organisations to receive funding for medical services. However, much still remains to be done in the region.

In 2023, we supported our network partners with their lobbying efforts to provide legal frameworks and funding for palliative care and in particular by:

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Hospices of Hope Limited Trustees’ Annual Report

For the year ended 31 December 2023

Technical Expertise

Our aim has always been to develop “models of care” that can be replicated in other parts of a country or in other countries in our target region. We have given particular help in areas such as the design of new hospices and palliative care centres (Brasov and Bucharest, Romania, Belgrade, Serbia, Tirana Albania and Chisinau, Republic of Moldova) and the implementation of services. However, our biggest contribution has been in the area of advising our country partner charities on how to raise funds, as charitable giving was virtually unknown in this region after 40 years of communism.

In 2023, we worked with our network partners to help develop their organisations and this included:

Education and Training

We recognise the importance of teaching palliative care to health care professionals from an early stage. We raised the funds to build the first residential palliative care training centre in Romania in Brasov and to date they have provided more than 25,000 training sessions to thousands of health-care professionals from over 27 different countries in the region. Courses range from introductory courses in hospice care to diplomas in palliative medicine and masters degrees. We often recruit volunteer experts in palliative care from the UK, USA and other countries to participate in training courses or conferences.

In addition to our country partners, medical professionals from Montenegro have also been trained by Hospices of Hope during 2023.

In 2023, we facilitated training opportunities for all within our network and the highlights included:

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Hospices of Hope Limited Trustees’ Annual Report

For the year ended 31 December 2023

Funding

Fundraising policy

The charity uses in-house fundraisers and volunteers. The main sources of income (apart from income generated by the retail operation) are donations from trusts and foundations, charitable events (gala dinner, lunches, quizzes, sporting and crowdfunding events), regular giving, corporate giving and legacies. We have an extensive database of very loyal donors who are supporting our work.

The charity is compliant with The Code of Fundraising Practice which can be found on the Fundraising Regulator’s website – we also have a fundraising promise on our website, which can be viewed here.

We are not aware of any instances of non-compliance with any code of practice 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. The charity is especially careful and sensitive when engaging with vulnerable people or those we have reason to believe might be vulnerable.

The management team completes a fundraising strategy review annually. Third party fundraisers notify us of their fundraising activities, and we support them in any way we can; providing materials, literature, speakers 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 following table details how we performed against the targets we set ourselves for 2023 and establishes new targets for 2024.

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Hospices of Hope Limited

Trustees’ Annual Report

For the year ended 31 December 2023

In 2023 weplanned to: In 2023 we: In 2024 weplan to:
Raise just over £1.5m
through trust grants,
donations, legacies, events,
retail operations and
promotions. We will Support
our hospice Partners objectives
from the funds we aim to raise.		 Exceeded our target and raised
over £1.6m.		 Raise just over £1.6m
through trust grants,
donations, legacies, events,
retail operations and
promotions. We will Support
our hospice Partners objectives
from the funds we aim to raise.
Open a further three charity
shops and raise £186,000
through charity retail.		 We opened three shops and
exceeded our target by raising
over £400k.		 Open a further a two charity
shops and raise a surplus of
just over £400k through charity
retail.
Continue the five Summer Trips
in Romania and recruit new
volunteers to join the team.		 The five Summer Trips in
Romania went ahead as
planned. 43 volunteers were
recruited from the UK.		 Organise three Summer Trips in
Romania (reduced from five
after a review of the need) and
recruit new volunteers to join
the team.
Carry out visits to all our
partners and
encourage/support fundraising
initiatives. Continue to build on
increased communication
amongst the network.		 Visits were made to all our
partners in 2023 apart from
Albania, where we used online
communication instead. As part
of these visits, we attended
fundraising activities including
a Ball in Serbia for 500
attendees and the first spring
Gala Dinner in Moldova.		 Carry out visits to our partners
and encourage/support
fundraising initiatives. In
particular, work with the HofH
representatives across the
Network.
Continue to build on increased
communication across the
network, including a
conference in the autumn for
key personnel from our partner
hospices.
Continue working with the
Honorary Patrons and engage
their support for the Copaceni
capital appeal.		 The Honorary Patrons
continued to support a variety
of fundraising activities
throughout theyear.		 Continue working with the
Honorary Patrons and engage
their support for the Copaceni
capital appeal.
Continue to organise a variety
of fundraising events and
expand the use of The Olive
Tree bistro to include evening
functions and new events.		 Four evening functions were
arranged at The Olive Tree as
well as the charity’s regular
quiz nights.
An additional 15 fundraising
events were organised
throughout the year which
included a variety of new ones;
a private dinner at the
Caledonian Club, Speed Quiz,
Networking and Serbian Wine
Tasting.		 Implement a fundraising of
fundraising events adding
some new locations/activities.
Increasing the evening
functions at The Olive Tree to
six.

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Hospices of Hope Limited Trustees’ Annual Report

For the year ended 31 December 2023

Recruit a fundraiser in the UK
to specifically fundraise for the
work in Ukraine.		 Two part-time fundraisers were
appointed in March. A private
dinner at the Caledonian Club
was organised with the new
British Ambassador to Ukraine.
An appeal was sent out to mark
the first-year anniversary of
when the war began and to
update supporters on the work
undertaken with our hospice
partner.		 Continue the fundraising
efforts for Ukraine.
Recruit a fundraiser to
specifically fundraise for the
work in Greece.
Raise the funds for key
personnel roles from our
hospice partners.		 Contributed to salary costs of
key personnel roles from our
hospice partners, who made
significant impact on the
development of palliative care
in South and East Europe.		 Continue to raise funds to
contribute to the salary costs
relating to key personnel roles
from our hospice partners.
Utilise the various membership
schemes in order to receive
regular donations towards
salary costs, for example
monthlysalaryof a nurse.
Raise further funds to support
the work of our hospice
partners to develop palliative
and hospice care across South
and East Europe.		 Grants totalling £694,036 were
made to our hospice partners
and via our Moldovan branch.		 Continue to raise further funds
to support the work of our
hospice partners to develop
palliative and hospice care
across South and East Europe.
Seek new sources of funding
utilising the fundraising tools
we have in place.

ACTION PLAN FOR 2024 ONWARDS

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

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Hospices of Hope Limited

Trustees’ Annual Report

For the year ended 31 December 2023

Regional activity:

ALBANIA

Ryder Albania

GREECE

Nosilia

Merimna

MOLDOVA

Hospices of Hope Moldova

ROMANIA

Hospice Casa Sperantei

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Hospices of Hope Limited

Trustees’ Annual Report

For the year ended 31 December 2023

Hospice Emanuel

SERBIA

BELhospice

UKRAINE

General

The continuing war between Russia and Ukraine created a risk to our branch in Moldova and our partner in Romania, both of which are very near the conflict zone, as well as our partner within Ukraine. In October a war began in the middle east which presented a challenge to our fundraising objectives, as the strong media coverage diverted attention from the situation in Ukraine. We have seen a fall in oneoff donations towards our specific appeals.

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Hospices of Hope Limited Trustees’ Annual Report

For the year ended 31 December 2023

Our policy on grant making requires that all projects 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 main network partners (the main beneficiaries of the grants) to ensure a good understanding of each project and ensure that funds are used appropriately and within the standards we expect from a partner. Where there is no Board representation our CEO maintains regular contact with the CEO of the partner organisation and necessary information is received according to our memorandum of understanding. We also have members of the Hospices of Hope team working in Albania and Ukraine.

Volunteers

Volunteers provide a valuable additional resource in the retail operation, the head office, on summer trips and other events. We are extremely grateful for their contribution to the success of our organisation.

Finance and risk review

The war between Russia and Ukraine, the war in the middle-east and the challenging economic environment have all affected our fundraising opportunities in 2023. Nevertheless, we achieved our budget and continued to provide significant financial support to our hospice partners. This was largely thanks to a strong contribution from our retail operations which delivered a surplus of over £400k. We secured some additional corporate partnerships which provided funds for key personnel roles within our hospice network. We held our annual Gala Dinner in London and were successful with several grant applications.

Total income was £285k higher than last year. This was driven by income from trusts and corporate & partnership support, which together were up by £382k, and retail income which was £383k ahead of last year. A number of shops performed well ahead of expectations and Otford continued to benefit from the additional footfall driven by the Bistro. The level of individual donations came under pressure although a large contributor to the £509k shortfall over last year was the receipt in 2022 of a donated house with a market value of £380k. This property now has a paying tenant and is providing a regular income. Some remedial work was undertaken during year, and it now has a market value of £425k.

The decision was made to close The Olive Tree café which was located in St Paul’s Church Hammersmith in December 2023. There were a number of unforeseen challenges including lack of footfall from reduced number of people attending the offices in the local area. However, we will continue to investigate similar opportunities to support the increase of profit within the Trading Company.

Expenditure was lower than budget, partly as a result of unfilled staff vacancies which in turn led to a lower level of event activity and travel, and partly a consequence of the continued tight control of overheads, particularly fundraising support and office costs.

Whilst the net margin attributable to the retail operation is inherently relatively small, and this reduces the percentage of our turnover which is available to spend on our charitable activities, the retail operation remains an important part of our activities, both in terms of the net funds raised but also the indirect benefits from raising awareness of the charity and providing another and valuable source of donations.

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Hospices of Hope Limited

Trustees’ Annual Report

For the year ended 31 December 2023

Updated cash flow forecasts to mid-2025 (i.e. 12 months from the date of approving these financial statements), have been prepared taking into account the actual performance for the first six months of the current year. The forecasts 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

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. The Trustees’ Annual Report is also the Directors’ Report as required by company law.

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 free unrestricted reserves. Running costs are calculated based on the budget for the forthcoming year and include all costs except grants payable and the costs of the Moldovan branch. For 2024, four months’ running costs calculated on this basis is £780,637 (2023: £667,619). The 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.

Total reserves at the balance sheet date were £1,955,586 (2022: £1,720,193) of which restricted funds were £370,591 (2022: £371,805). The free reserves (unrestricted reserves less amounts represented by designated funds and fixed assets, less associated debt) were £771,076 (2022: £1,013,547).

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 is reviewed regularly by the management and discussed and updated as appropriate at Trustees’ meetings.

The main risks identified are the ongoing conflicts in Ukraine and the Middle East and the continuing economic strain, which create uncertainty related to our fundraising plans that could affect our income. Whilst we are confident that we can continue to provide significant support to our partners, if our income was to decline significantly then the support provided to them would be reviewed. Based on these factors we do not consider the uncertainty of fundraising income will have an impact on the going concern of the charity.

There are operational risks in the Republic of Moldova due to its proximity to Ukraine and Russia’s attempts to undermine the government.

The Trustees carefully monitor the operations of all the country partners to ensure proper governance is in place. Visits are made to the hospice partners by members of the Senior Management team as well regular meetings online throughout the year. An overview is provided in the CEO report at each Trustees meeting on the progress of the hospice partners and how the organisation is supporting them.

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Hospices of Hope Limited Trustees’ Annual Report

For the year ended 31 December 2023

In accordance with the memorandum of understanding, each partner provides annually the required paperwork to Hospices of Hope to ensure proper governance is in place.

An important source of income is derived from our shops. There are major challenges from competing charity shops, rising rents, the number of donors for whom we can receive Gift Aid, and our ability to continue to attract competent volunteers. This is addressed in part by ensuring we have retail experience represented on the Board of Directors and through 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 meet at least twice a year.

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

Role of the CEO and Management Team

The CEO provides leadership to the executive team 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. The CEO is supported by the Development Director, the Head of Retail, the Finance Manager, the Fundraising Manager and the Donor Relations Manager and this group forms the Management Team. The CEO and management team also lead the efforts to help raise funds which are passed by donors directly to partner organisations (which are not reflected in these accounts) and to provide all the other forms of help and advice provided by the charity to these organisations.

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.

Appointment of Trustees

The Trustees aim to maintain a Board of nine 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 Chair.

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.

Remuneration policy for key management personnel

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

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Hospices of Hope Limited Trustees’ Annual Report For the year ended 31 December 2023

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.

Statement of Disclosure to Auditors

Each of the persons who are Trustees at the time when this Trustees' report is approved has confirmed

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 Trustees are members of the charity, but this entitles them only to voting rights. The Trustees have no beneficial interest in the charity.

31

Hospices of Hope Limited Trustees’ Annual Report

For the year ended 31 December 2023

Auditor

Sayer Vincent were first appointed as auditor to the company in respect of the 2016 year-end. Following seven years in office, the Trustees considered it appropriate to put the audit out to tender. Five firms including the incumbent were invited to participate and following a thorough process the firm of Lindeyer Francis Ferguson Limited was appointed to audit the Report & Accounts for the year ended 31 December 2023. The Trustees extend thanks to Sayer Vincent for their guidance and support over the last seven years.

Lindeyer Francis Ferguson Limited have expressed their willingness to continue as auditor for the year ending 31 December 2024.

The Trustees’ annual report has been prepared in accordance with the special provisions applicable to companies subject to the small companies' regime and was approved by the Trustees on 27 June 2024 and signed on their behalf by

Rev. Tony Redman Chair

32

Independent Auditor’s Report

To the members of Hospices of Hope Limited

Opinion

We have audited the group and parent company financial statements of Hospices of Hope Limited (“the charitable company”) for the year ended 31 December 2023, which comprise the Consolidated Statement of Financial Activities, the Balance Sheets, the Consolidated Statement of Cash Flows and the notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

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 and parent charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity'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 annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information.

33

Independent Auditor’s Report

To the members of Hospices of Hope Limited

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.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

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 charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the directors’ report included within the trustees’ report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 require us to report to you if, in our opinion:

34

Independent Auditor’s Report

To the members of Hospices of Hope Limited

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 31, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the 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 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

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

Irregularities, including fraud, are instances of 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, is detailed below.

We obtained an understanding of the legal and regulatory framework applicable to the preparation of the financial statements of the charity, and the procedures that management adopt to ensure compliance. We have considered the extent to which non-compliance might have a material effect on the financial statements, and in particular we identified: the Companies Act 2006 and the Charities Statement of Recommended Practice.

We have also identified other laws and regulations that do not have a direct effect on the amounts or disclosures within the financial statements, but for which compliance is fundamental to the charity’s operations and to avoid material penalties, including the General Data Protection Regulation, data protection regulations, employment law, health and safety, Gift Aid regulations, tax laws and local laws in relation to the branch in Moldova.

35

Independent Auditor’s Report

To the members of Hospices of Hope Limited

Having reviewed the laws and regulations applicable to the charity, we designed and performed audit procedures to obtain sufficient appropriate audit evidence. Specifically, we:

We assessed the susceptibility of the charity’s financial statements to material misstatement, including considering how fraud might occur. This was performed by:

We then designed audit procedures in response to the risks identified, including performing substantive testing on all material income streams; reviewing journal entries and accounting estimates etc; review of all performance material overseas grants paid to minutes and supporting documentation and review of correspondence back from donees to confirm appropriate use of funds; enquiry with management and review of business plans/forecasts for the trading subsidiary; and review of meeting minutes where grants are discussed and agreed.

36

Independent Auditor’s Report

To the members of Hospices of Hope Limited

The audit has been planned and performed in in accordance with auditing standards, however, because of the inherent limitations of audit procedures there remains a risk that we will not detect all irregularities, including those that may lead to material misstatements in the financial statements. There are inherent difficulties in detecting irregularities, and irregularities that result from fraud may be more difficult to detect than irregularities that result from error, for example due to concealment, override of controls, collusion or misrepresentations. In addition, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less audit procedures are able to identify it.

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

Use of our report

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

Amy Healey FCA CTA DChA Senior Statutory Auditor

For and on behalf of: Lindeyer Francis Ferguson Limited Statutory Auditors Chartered Accountants

Date: 17 July 2024

North House 198 High Street Tonbridge Kent TN9 1BE

37

Hospices of Hope Limited

Consolidated statement of financial activities

(including income and expenditure account)

For the year ended 31 December 2023

Note
Income from:
Donations and legacies
4
Government grants - coronavirus
Other trading activities:
Trading turnover and retail Gift Aid
Events and promotions
5
Interest received
Rent receivable
Other income
Total income
Expenditure on:
Raising funds:
6
Cost of generating donations & legacies
Cost of events and promotions
Rental property costs
Trading
Charitable activities
7
Total expenditure
Net gains on investments
15
Net income
9
Tax credit / (charge)
13
Net income and
net movement in funds
Reconciliation of funds:
Total funds brought forward
Total funds carried forward
23		 2023
£
245,734
-
2,374,096
116,765
1,867
8,100
360
2,746,922
178,047
11,580
1,511
1,963,507
389,625
2,544,270
33,050
235,702
905
236,607
1,348,388
1,584,995
Unrestricted
funds		 2023
£
824,824
-
-
29,187
-
-
-
854,011
62,337
3,098
-
-
789,790
855,225
-
( 1,214)
-
( 1,214)
371,805
370,591
Restricted
funds		 2023
Total
funds
£
1,070,558
-
2,374,096
145,952
1,867
8,100
360
3,600,933
240,384
14,678
1,511
1,963,507
1,179,415
3,399,495
33,050
234,488
905
235,393
1,720,193
1,955,586		 2022
£
564,220
64
1,989,227
133,255
584
-
360
2,687,710
192,995
15,067
-
1,756,724
235,099
2,199,885
-
487,825
( 675)
487,150
861,238
1,348,388
Unrestricted
funds		 2022
£
564,755
-
1,910
61,897
-
-
-
628,562
-
-
-
-
785,179
785,179
-
( 156,617)
-
( 156,617)
528,422
371,805
Restricted
funds		 2022
Total
funds
£
1,128,975
64
1,991,137
195,152
584
-
360
3,316,272
192,995
15,067
-
1,756,724
1,020,278
2,985,064
-
331,208
( 675)
330,533
1,389,660
1,720,193

All income and expenditure relates to continuing activities. There were no other recognised gains or losses other than those stated above.

38

Hospices of Hope Limited

Balance sheets

Company number: 04120082

As at 31 December 2023

Note
Fixed assets:
Tangible assets
14
Investment property
15
Investments
16
Current assets:
Stock: goods for resale
Debtors
18
Cash at bank and in hand
Liabilities:
Creditors: amounts falling due within one
year
19
Net current assets
Creditors: amounts falling due after more
than one year
20
Provisions for liabilities
21
Total net assets
22
Funds:
Restricted income funds
Unrestricted income funds:
General funds
Designated funds
Total unrestricted funds
Total funds
23		 Group
2023
£
689,331
425,000
-
1,114,331
18,962
156,289
1,116,016
1,291,267
( 162,438)
1,128,829
( 280,704)
( 6,870)
1,955,586
370,591
1,589,115
( 4,120)
1,584,995
1,955,586		 Group
2022
£
638,179
380,000
-
1,018,179
17,479
135,548
1,021,716
1,174,743
( 169,620)
1,005,123
( 295,334)
( 7,775)
1,720,193
371,805
1,352,556
( 4,168)
1,348,388
1,720,193		 Charity
2023
£
653,171
425,000
65,451
1,143,622
4,435
232,381
1,105,679
1,342,495
( 150,256)
1,192,239
( 280,704)
-
2,055,157
370,591
1,654,566
30,000
1,684,566
2,055,157		 Charity
2022
£
597,258
380,000
65,451
1,042,709
4,427
179,491
1,016,697
1,200,615
( 158,177)
1,042,438
( 295,334)
-
1,789,813
371,805
1,418,008
-
1,418,008
1,789,813

The financial statements were approved by the Board of Trustees on 27 June 2024 and signed on its behalf by:

Tony Redman

Chair

39

Hospices of Hope Limited

Consolidated statement of cash flows

For the year ended 31 December 2023

Net cash provided by operating activities
Cash flows from investing activities
Interest received
Purchase of fixed assets
Receipts from sale of fixed assets
Net cash used in investing activities
Cash flows from financing activities
Mortgage repayments
Net cash used in financing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
A. Net cash provided by operating activities
Net income for the reporting period (as per the
statement of financial activities
Depreciation
Loss on disposal
Net gains on investments
Interest received
Non-cash transfer of acquisition of property
Increase in stocks
(Increase) / decrease in debtors
(Decrease) / increase in creditors
Tax recovered
Net cash provided by operating activities
B. Analysis of cash equivalents and net debt
At 1 January 2023
Cash flows
Other non-cash changes
At 31 December 2023		 Note
A
B
Cash at bank
and in hand
£
1,021,716
94,300
-
1,116,016
Cash and cash
equivalents:		 2023
2022
£
£
165,162
61,381
1,867
584
( 61,905)
( 71,807)
4,417
-
( 55,621)
( 71,223)
( 15,241)
( 18,145)
( 15,241)
( 18,145)
94,300
( 27,987)
1,021,716
1,049,703
1,116,016
1,021,716
234,488
331,208
( 7,492)
35,727
1,878
1,260
( 33,050)
-
( 1,867)
( 584)
-
( 380,000)
( 1,483)
( 1,245)
( 20,741)
11,867
( 6,571)
61,100
-
2,048
165,162
61,381
Loans due
within one
year
Loans due
after one
year
£
£
16,199
295,334
-
( 15,241)
( 611)
611
15,588
280,704
Net debt:		 2022
£
61,381
584
( 71,807)
-
( 71,223)
( 18,145)
( 18,145)
( 27,987)
1,049,703
1,021,716
331,208
35,727
1,260
-
( 584)
( 380,000)
( 1,245)
11,867
61,100
2,048
61,381
280,704

40

Hospices of Hope Limited

For the year ended 31 December 2023

Notes to the financial statements

1 Status

Hospices of Hope is a charitable company limited by guarantee and incorporated in the UK . It has no share capital and the liability of each member in the event of winding up is limited to £1. The charitable company meets the definition of a public benefit entity under FRS 102. The registered office address and principal place of business is 11 High Street, Otford, Kent, TN14 5PG.

2 Accounting policies

2.1 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.

The accounts are presented in pounds sterling and rounded to the nearest pound.

2.2 Going concern

There are no material uncertainties about the charity's ability to continue, and so the going concern basis of accounting has been adopted.

2.3 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.

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.

41

Hospices of Hope Limited

Notes to the financial statements

For the year ended 31 December 2023

2 Accounting policies continued

2.4 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.

2.5 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.

2.6 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.

42

Hospices of Hope Limited

Notes to the financial statements

For the year ended 31 December 2023

2 Accounting policies continued

2.7 Allocation of support costs

Resources expended are allocated to the particular activity where the cost relates directly to that activity. Costs which relate to more than one activity are apportioned accordingly. Support costs, which are the costs of the central functions which underpin all of the charity's activities, are allocated on the basis of staff costs.

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.

2.8 Operating leases

Operating lease rentals are charged on a straight line basis over the term of the lease.

2.9 Tangible fixed assets

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:

Freehold buildings 2% straight line (land is not depreciated) Leasehold improvements Over the remaining life of the lease or over ten years straight line, whichever is shorter Office equipment 20% straight line Fundraising equipment 10% - 20% straight line

Fundraising equipment includes assets relating to the bistro and retail operation.

2.10 Investment property

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. The surplus or deficit on revaluation is recognised in the statement of financial activities.

2.11 Investments

Investments in subsidiary undertakings are stated at cost less provision for impairment.

43

Hospices of Hope Limited

Notes to the financial statements

For the year ended 31 December 2023

2 Accounting policies continued

2.12 Stock

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.

2.13 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.

2.14 Cash at bank and in hand

Cash at bank and 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.

2.15 Creditors and provisions

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

2.16 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.

2.17 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.

2.18 Fund accounting

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.

44

Hospices of Hope Limited

For the year ended 31 December 2023

Notes to the financial statements

3 Prior period reclassifications

The prior period comparatives have been reclassified to show income from fundraising events of £68,832 separately from donations, and staff costs and grants paid via the Moldovan branch of £129,171 and £19,784 respectively separately from the other branch operating costs.

In addition, the prior period allocations of staff and support costs have been reclassified to achieve a fairer representation of the cost of each activity. These reclassifications increased the total cost of raising funds by £108,838, and reduced the direct costs of charitable activities by the same amount.

There was no effect on the prior period result or net assets of either reclassification.

4
Income from donations and legacies
Donations from individuals (including Gift Aid)
Gift in kind: investment property
Other gifts in kind
Legacies
Churches, schools and community groups
Businesses
Trusts and foundations
5
Income from events and promotions
Fundraising events
6
Expenditure on raising funds
Direct costs:
Staff costs (see Note 10)
Moldova branch costs
Travel
Premises costs
Other costs
Gifts in kind: fundraising
Legal and professional fees
Support costs allocated (See Note 8)		 2023
£
301,446
-
41,868
14,494
33,186
164,804
514,760
1,070,558
2023
£
145,952
145,952
2023
£
1,124,016
26,095
4,677
441,202
492,570
22,381
4,812
104,327
2,220,080		 2022
£
430,039
380,000
-
5,962
14,607
51,443
246,924
1,128,975
2022
£
195,152
195,152
2022
£
984,096
11,702
3,262
357,454
458,151
-
9,431
140,690
1,964,786

45

Hospices of Hope Limited

Notes to the financial statements

For the year ended 31 December 2023

7 Expenditure on charitable activities

Expenditure on charitable activities
Current period
Direct costs:
Staff costs (see Note 10)
Moldova branch costs
Summer trips
Transfers and equipment
Gifts in kind: direct
Travel
Grants payable (see Note 11)
Exchange rate variances
Support costs allocated (See Note 8)
Prior period
Direct costs:
Staff costs (see Note 10)
Moldova branch costs
Summer trips
Transfers and equipment
Travel
Grants payable (see Note 11)
Exchange rate variances
Support costs allocated (See Note 8)		 Advocacy &
promotion
2023
£
14,137
-
-
-
-
-
-
-
1,312
15,449
Advocacy &
promotion
2022
£
12,752
-
-
-
-
-
-
1,823
14,575		 Technical
assistance
2023
£
19,726
-
-
-
-
-
-
-
1,831
21,557
Technical
assistance
2022
£
17,904
-
-
-
-
-
-
2,560
20,464		 Funding
support &
hospice
services
2023
£
265,077
82,338
18,344
14,546
19,487
19,296
694,036
4,681
24,604
1,142,409
Funding
support &
hospice
services
2022
£
160,392
38,969
39,974
17,365
11,655
695,852
931
20,101
985,239		 Total
2023
£
298,940
82,338
18,344
14,546
19,487
19,296
694,036
4,681
27,747
1,179,415
Total
2022
£
191,048
38,969
39,974
17,365
11,655
695,852
931
24,484
1,020,278

46

Hospices of Hope Limited

Notes to the financial statements

For the year ended 31 December 2023

8
Support costs
Staff costs (see Note 10)
Premises costs
Interest payable
Other costs
Accountancy fees
Legal and professional fees
Governance costs:
Audit fees
9
Net income
This is stated after charging:
Depreciation
Loss on disposal
Operating lease rentals - property
Auditor's remuneration excluding VAT
10
Staff costs
Gross salaries
Employer's National Insurance
Employer's pension contributions
Moldovan branch staff costs
Consultancy fees		 2023
£
59,944
5,732
23,047
26,226
-
1,875
15,250
132,074
2023
£
( 7,492)
1,878
367,477
15,250
2023
£
1,205,140
66,900
18,484
123,189
69,187
1,482,900		 2022
£
50,504
4,068
13,708
69,119
3,500
7,175
17,100
165,174
2022
£
35,727
1,260
300,417
17,100
2022
£
1,065,887
66,900
15,711
40,477
36,673
1,225,648

No employee earned more than £60,000 in the year (2022: None).

The total employee benefits (including employer's National Insurance and pension contributions) of key management personnel was £143,122 (2022: £137,040).

The charity Trustees were neither paid nor received any other benefits from employment with the charity, or from expenses in the year (2022: £Nil).

The average number of employees (head count based on number of staff employed) during the year was 71 (2022: 67).

47

Hospices of Hope Limited

Notes to the financial statements

For the year ended 31 December 2023

11 Grants payable

Grants payable
Hospice Casa Sperantei
Hospice Emmanuel Oradea
Other grants to Romania
Belhospice Serbia
Greece
Albania
Ukraine
Moldova - mobile teams		 2023
£
-
32,077
100,000
169,456
81,416
133,670
69,584
107,833
694,036		 2022
£
235,386
30,000
76,584
73,430
60,000
54,712
36,569
129,171
695,852

12 Related party transactions

Aggregate donations from related parties were £20,581 (2022: £11,018).

Anna Perolls is the CEO of Hospices of Hope. Her father, mother and brother are also employed by the charity. Anna Perolls and Graham Perolls (Anna's father) sit on the board of Hospice Casa Sperantei and are assembly members of Belhospice, Serbia, but ultimately the trustees make the decisions to award grants. Note 11 gives details of grants paid to overseas organisations.

13 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:

parent charity. Its corporation tax in the year was:
Profit or (loss) for the period
Adjustments for disallowable items
Capital allowances
Profit or (loss) for tax purposes
Losses brought forward
Losses carried forward
Deferred tax credit or (charge) for the year
Total tax credit or (charge)		 2023
£
( 30,857)
10,035
( 6,012)
( 26,834)
( 21,418)
( 48,252)
905
905		 2022
£
( 3,990)
5,763
( 9,201)
( 7,428)
( 13,990)
( 21,418)
( 675)
( 675)

48

Hospices of Hope Limited

Notes to the financial statements

For the year ended 31 December 2023

14 Tangible fixed assets

Group
Cost
At 1 January 2023
Additions
Disposals
At 31 December 2023
Depreciation
At 1 January 2023
Charge for the year
Adjustment
Eliminated on disposal
At 31 December 2023
Net book value
At 31 December 2023
At 31 December 2022		 Freehold
property
£
667,087
-
-
667,087
146,506
13,342
( 48,000)
-
111,848
555,239
520,581		 Leasehold
improve-
ments
£
130,472
35,743
-
166,215
65,082
13,031
-
-
78,113
88,102
65,390		 Office
equipment
£
19,879
2,398
( 2,995)
19,282
14,086
2,859
-
( 2,995)
13,950
5,332
5,793		 £
94,313
11,814
( 16,810)
89,317
47,898
11,276
-
( 10,515)
48,659
40,658
46,415
Fundraising
equipment		 Total
£
911,751
49,955
( 19,805)
941,901
273,572
40,508
( 48,000)
( 13,510)
252,570
689,331
638,179

The adjustment relates to a correction for depreciation previously charged on freehold land.

49

Hospices of Hope Limited

Notes to the financial statements

For the year ended 31 December 2023

14 Tangible fixed assets continued

Charity
Cost
At 1 January 2023
Additions
Disposals
At 31 December 2023
Depreciation
At 1 January 2023
Charge for the year
Land adjustment
Eliminated on disposal
At 31 December 2023
Net book value
At 31 December 2023
At 31 December 2022		 Freehold
property
£
667,087
-
-
667,087
146,506
13,342
( 48,000)
-
111,848
555,239
520,581		 Leasehold
improve-
ments
£
130,472
35,743
-
166,215
65,082
13,031
-
-
78,113
88,102
65,390		 Office
equipment
£
19,879
2,398
( 2,995)
19,282
14,086
2,859
-
( 2,995)
13,950
5,332
5,793		 £
29,950
2,105
-
32,055
24,456
3,101
-
-
27,557
4,498
5,494
Fundraising
equipment		 Total
£
847,388
40,246
( 2,995)
884,639
250,130
32,333
( 48,000)
( 2,995)
231,468
653,171
597,258

£507,239 (2022: £520,581) of freehold land and buildings, in both the group and the charity, has been pledged as security for a mortgage liability.

15 Investment property

Investment property
Group and charity - fair value
At 1 January 2023
Additions
Change in fair value
At 31 December 2023		 2022
£
380,000
11,950
33,050
425,000

The historical cost of the investment property is £380,000 which was the market value of the property when it was donated to the charity.

At 31 December 2023 the fair value of the investment property was ascertained by a member of the Board of Trustees who has relevant professional experience and expertise, based on a review of the local market, comparable properties and estate agent's advice. An independent valuation report was not commissioned.

50

Hospices of Hope Limited

Notes to the financial statements

For the year ended 31 December 2023

16 Investment in 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 with number 02421289 and registered office 11 High Street High Street, Otford, Sevenoaks, England, TN14 5PG. 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.

invested in shares in 2016.
Charity Charity
2023 2022
£ £
Shares in subsidiary 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.

summary of the results of the subsidiary is shown below: The results in
intergroup transactions.		 the consolidated SOFA exclude
Turnover
Cost of sales
Gross profit
Administrative expenses
Other operating income
Operating loss
Interest payable
Loss on ordinary activities before tax
Tax credit / (charge)
Loss for the financial year
The aggregate of the assets, liabilities and reserves was:
Assets
Liabilities and provisions
Net liabilities		 2023
£
415,405
( 165,895)
249,510
( 279,199)
1,147
( 28,542)
( 2,315)
( 30,857)
905
( 29,952)
56,954
( 91,074)
( 34,120)		 2022
£
325,964
( 135,684)
190,280
( 193,533)
58
( 3,195)
( 795)
( 3,990)
( 675)
( 4,665)
60,338
( 64,506)
( 4,168)

51

Hospices of Hope Limited

Notes to the financial statements

For the year ended 31 December 2023

17 Parent charity

As permitted by s408 Companies Act 2006, the parent charity has not presented its own Statement of Financial Activities and related notes. The parent charity's net income for the year was £265,344 (2022: £335,187).

18 Debtors

Debtors
Gift aid recoverable
Due from group undertakings
Tax recoverable
Other debtors
Prepayments
Creditors: amounts falling due within one
Other loans
Bank loans
Trade creditors
Other tax and social security
Other creditors
Accruals		 Group
2023
£
33,239
-
1,274
24,363
97,413
156,289
year
Group
2023
£
-
15,588
82,345
18,477
14,088
31,940
162,438		 Group
2022
£
25,060
-
1,274
19,652
89,562
135,548
Group
2022
£
15,000
16,199
78,063
16,255
13,075
31,028
169,620		 Charity
2023
£
33,239
61,427
-
40,302
97,413
232,381
Charity
2023
£
-
15,588
78,626
16,718
7,384
31,940
150,256		 Charity
2022
£
25,060
30,695
-
34,174
89,562
179,491
Charity
2022
£
15,000
16,199
75,330
14,294
7,473
29,881
158,177

19 Creditors: amounts falling due within one year

52

Hospices of Hope Limited

Notes to the financial statements

For the year ended 31 December 2023

20 Creditors: amounts falling due after more than one year

Creditors: amounts falling due after more than one year
Bank loans Group
2023
£
280,704
280,704		 Group
2022
£
295,334
295,334		 Charity
2023
£
280,704
280,704		 Charity
2022
£
295,334
295,334

Security of £296,292 (2022: £311,533) has been given by the group in relation to the bank loans by way of a first fixed legal charge with full title guarantee over the freehold interest in the property at 11-13 High Street, Otford, a cross-guarantee, and a negative pledge.

The bank loans are repayable over 25 years and carry an interest rate of 3% over base rate.

Loan maturity analysis
Due within one year
Due in one to two years
Due in two to five years
Due in more than five years		 Group
2023
£
15,588
16,992
60,170
203,542
296,292		 Group
2022
£
31,199
17,217
59,016
219,101
326,533		 Charity
2023
£
15,588
16,992
60,170
203,542
296,292		 Charity
2022
£
31,199
17,217
59,016
219,101
326,533

21 Provisions for liabilities

Provisions for liabilities
Deferred tax liability:
At the start of the year
(Credit) / charge for the year		 Group
2023
£
7,775
( 905)
6,870		 Group
2022
£
7,100
675
7,775

53

Hospices of Hope Limited

Notes to the financial statements

For the year ended 31 December 2023

22
Analysis of group net assets between funds
Current year
Fixed assets
Net current assets
Long term liabilities
Provisions for liabilities
Total net assets
Prior year
Fixed assets
Net current assets
Long term liabilities
Provisions for liabilities
Total net assets		 £
1,114,331
758,238
( 280,704)
( 6,870)
1,584,995
1,018,179
633,318
( 295,334)
( 7,775)
1,348,388
Unrestricted
funds		 Restricted
funds
£
-
370,591
-
-
370,591
-
371,805
-
-
371,805		 Total funds
£
1,114,331
1,128,829
( 280,704)
( 6,870)
1,955,586
1,018,179
1,005,123
( 295,334)
( 7,775)
1,720,193

54

Hospices of Hope Limited

Notes to the financial statements

For the year ended 31 December 2023

23 Statement of movements on funds

Current year
Restricted funds:
Ukraine
Serbia
Romania
Moldova
Moldovan branch
Hospice Casa Sperantei
Summer Camps
Copaceni
Albania
Greece
Bagpuss
Total restricted
Unrestricted funds:
General fund
Designated funds:
Greece
Non-charitable trading
Total unrestricted
Total funds		 Brought
forward
£
46,249
2,616
-
101,122
119,827
36,290
-
50,748
-
5,595
9,358
371,805
1,352,556
-
( 4,168)
1,348,388
1,720,193		 Income
£
76,932
56,418
23,017
281,762
93,476
22,821
35,435
73,476
206,847
256
11,011
881,451
2,330,370
-
416,552
2,746,922
3,628,373		 £
£
( 88,818)
-
( 59,034)
-
( 1,206)
-
( 213,544)
-
( 166,819)
-
( 30,986)
-
( 18,137)
-
( 112,604)
-
( 188,300)
-
( 2,984)
-
( 233)
-
( 882,665)
-
( 2,096,861)
3,050
-
30,000
( 446,504)
-
( 2,543,365)
33,050
( 3,426,030)
33,050
Expenditure
Transfers and
gains / (losses)		 Carried
forward
£
34,363
-
21,811
169,340
46,484
28,125
17,298
11,620
18,547
2,867
20,136
370,591
1,589,115
30,000
( 34,120)
1,584,995
1,955,586

55

Hospices of Hope Limited

Notes to the financial statements

For the year ended 31 December 2023

23 Statement of movements on funds continued

Prior year
Restricted funds:
Ukraine
Serbia
Moldova
Hospice Casa Sperantei
Summer Camps
Copaceni
Albania
Greece
Bagpuss
Total restricted
Unrestricted funds:
General fund
Non-charitable trading
Total unrestricted
Total funds		 Brought
forward
£
-
24,080
217,855
47,611
9,465
176,812
43,946
-
8,653
528,422
860,741
497
861,238
1,389,660		 Income
£
166,171
56,067
232,041
100,854
22,127
5,520
31,218
5,656
8,908
628,562
2,361,688
326,022
2,687,710
3,316,272		 £
( 119,922)
( 77,531)
( 228,947)
( 112,175)
( 31,592)
( 131,584)
( 75,164)
( 61)
( 8,203)
( 785,179)
( 1,869,873)
( 330,687)
( 2,200,560)
( 2,985,739)
Expenditure		 Transfers
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 Carried
forward
£
46,249
2,616
220,949
36,290
-
50,748
-
5,595
9,358
371,805
1,352,556
( 4,168)
1,348,388
1,720,193

Purposes of restricted funds

Ukraine - Funds to support the work of our partner in Ukraine through the Charity Fund St Panteleymon in support of Ivano-Frankivsk Group of Hospices.

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

Moldova - Funds to support the work of direct activities through our Moldovan branch including grants to mobile teams in Moldova.

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.

56

Hospices of Hope Limited

For the year ended 31 December 2023

Notes to the financial statements

23 Statement of movements on funds continued

Copaceni (formerly split into Bucharest Children's Centre and Medicor Grant Children's 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.

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

Greece - Funds to support the work of our partners in Greece; Merimna and Nosilia.

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

24 Operating lease commitments

The group's and the charity's total future minimum lease payments under non-cancellable operating leases is as follows:

Property
Less than one year
One to five years
Over five years		 2023
£
366,974
847,284
-
1,214,258		 2022
£
360,599
1,136,419
77,838
1,574,856

57