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2022-03-31-accounts

Charity Registration No. 1090151

Company Registration No. 04267625 (England and Wales)

ST JOSEPH'S HOSPICE ASSOCIATION

TRUSTEES' REPORT AND

CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

ST JOSEPH'S HOSPICE ASSOCIATION

CONTENTS

Page
Legal and administrative information 1
Trustees' report 2 – 9
Statement of trustees' responsibilities 10
Independent auditors' report 11 – 14
Consolidated statement of financial activities 15
Summary consolidated income and expenditure account 16
Consolidated balance sheet 17
Consolidated cash flow statement 18
Notes to the financial statements 19 – 36

ST JOSEPH'S HOSPICE ASSOCIATION

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Mrs J Daly
Ms Y E Atkinson
Mr D J Bricknell
Dr J Welch
Mr P S Morgan
Mrs L Moore
Mr K A Guy
Chief Executive Mr M Parr
Director of Clinical Services Ms C Waller
Company Secretary Mr M Parr
Charity Number 1090151
Company number 04267625
Registered Office Ince Road
Thornton
Liverpool
L23 4UE
Auditors Lonsdale & Marsh
509-510 Cotton Exchange
Bixteth Street
Liverpool
L3 9LQ
Bankers National Westminster Bank plc
23 Sankey Street
Warrington
Cheshire
WA1 1XH
Solicitors Morecrofts
Cotton Exchange
Old Hall Street
Liverpool
L3 9LQ

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ST JOSEPH'S HOSPICE ASSOCIATION

TRUSTEES' REPORT

FOR THE YEAR ENDED 31 MARCH 2022

The trustees, who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 March 2022. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015).

Objectives and Activities for Public Benefit

The principal objectives of the charity during the year under review were to promote the relief of suffering from terminal and life limiting illnesses by providing in-patient palliative care to patients, to support their families and carers and to promote the work of the hospice in the wider community. These objectives were achieved by the provision of the following services: -

Further support was given to patients, their families and carers in the areas of: -

Voluntary help

The trustees remain very grateful to all volunteers who have helped by staffing the shops, carrying out fundraising initiatives, working in the hospice and various other activities. The public have been very kind in continuing to support fundraising events and by generous donations made to the hospice. The accounting treatment of voluntary help and donations of gifts in kind is set out on page 20 in the accounting policies. It is estimated that the notional value of volunteer help in 2021/22 was approximately £245,000 although due to the various restrictions resulting from the pandemic, volunteer attendance was much reduced in comparison to previous years as we sought to ensure the safety of everyone across all our hospice sites, including our shops, clinical areas and other on-site support functions. Consequently, estimating a true value for the year 2021/22 would be impossible. However, it is gratifying to note that as restrictions changed or eased our volunteer supporters returned to the hospice, along with some new recruits who now help run our improved reception desk function.

Subsidiaries

St Joseph’s Hospice Association has one wholly owned subsidiary – St Joseph’s Academy Services Limited. The main activity of the company is the sale of promotional goods in support of St Joseph’s Hospice Association. During the year, the company paid a management charge of £4,000 (2020/21 - £4,000) and made a charitable donation of £2,653 (2020/21- £3,373) to St Joseph’s Hospice Association.

STRATEGIC REPORT

Achievement and performance

The key activity areas across the hospice – Clinical, Fundraising, Retail and Human Resources – all have team plans to enable the delivery of the high level hospice objectives which in turn will take us towards our vision of reaching ‘all patients and their families in our communities who need nurse-led end of life care, offering support and compassion through our outstanding and unique service.’

It goes without saying that in the two years since launching the plan we have experienced one of the most turbulent periods in recent history, with the ongoing impacts of Brexit, followed by the global pandemic, and latterly the repercussions from the Russian invasion and protracted war in Ukraine, all of which have contributed in varying degrees to the current economic environment in which we find ourselves. Of course not all of these consequences have affected the hospice directly; for example, the impact at a national level has led to the inevitable funding constraints placed upon the NHS, which then filter down to the hospice in the form of reduced uplift to the rates commissioners pay for our beds, leading in turn to greater pressure

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ST JOSEPH'S HOSPICE ASSOCIATION

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2022

on raising charitable funds to subsidise the shortfall. The same events have of course put pressure on individuals who support the hospice, meaning that those charitable funds are harder to come by as household budgets and disposable income have been squeezed.

Although in some senses the hospice has been able to navigate its way through this period of uncertainty quite successfully – e.g. the limited impact of the Covid-19 virus on our patients through the efforts of staff in implementing control measures, accessing funding from the NHS for ensuring beds were available throughout the crisis, which offset some shortfall in other areas, accessing grants and support from trusts and foundations, and, latterly, finally receiving some long-overdue legacies from benefactors – there is no doubt that many of the developments in services, some aspects of modernising internal processes and functions, and the growth of our income generation models, have been delayed, postponed or only partly achieved. Staff have worked incredibly hard simply just to maintain the service ‘as is’. Despite this, however, there have been many successes. Our retail operation is growing, despite the setback of the warehouse fire last year. Our lottery membership has been maintained and much work has gone into switching to a new canvassing model and direct debit systems of sign-up/subscription collection, whilst in fundraising the focus has shifted to maintaining a presence in the community in readiness for the new, post-crisis operating environment as well as increasing our visibility to local businesses through membership of trade groups. HR has been working very hard to modernise, improve and extend our support for staff, our governance processes and our sustainability in terms of recruitment and retention. In our clinical area we have increased the number of patients we are able to care for by building two new rooms (meaning a 7% increase in our capacity, or 30 – 40 additional patients receiving care each year) as well as carrying out a number of grant-funded improvements across the wards, whilst also increasing the number of Non-Medical Prescribers.

Our work with Manchester Metropolitan University continued, as we look to help develop a new model of end of life care for people who suffer from substance misuse. This, along with our good working relationship with the prison service, has meant we can address our objective of greater inclusivity in our patient population and we were able to help patients from both groups last year in our inpatient unit.

We also increased our work on creating a dementia friendly environment at the hospice, both for patients and also their relatives who may also suffer from the disease. We have a lead dementia nurse (RGN) and are members of Dementia Friendly Sefton; a significant bid for capital funds to support further improvements is planned for the coming year.

We have, through accessing various grants, been able to plan for further improvements to our wards, nurses’ stations, and take steps toward our major capital project to provide a wellbeing centre on site for our local communities

In short, despite the obvious challenges to delivering anything other than a basic level of service we have still been able to develop and improve, albeit on nothing like the scale we would have wished before the various crises unfolded.

The trustees and staff are proud of the way in which the hospice has managed the extraordinary challenges of the past two years and of the strong position in which the charity finds itself. There is no doubt that, if the hospice had not been in such a strong position at the outset, it would have been very difficult to demonstrate such resilience and deal with those challenges so robustly, a fact which bears out the importance of the structural changes and business remodelling which took place in the years immediately prior to the pandemic.

As a result of the above we have no concerns about the ability of the hospice to operate through 2022/23 in terms of financial viability and we expect to maintain a safe, fully operational clinical service.

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ST JOSEPH'S HOSPICE ASSOCIATION

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2022

Financial review

Income generation

In 2021/22 the hospice recorded an operating surplus of £146k, increasing the general reserves to £1,150,029 with a further £7.4k in restricted funds for specific purchases. Across the year we have seen a typical liquidity ratio of around 30:1 at any one time, which is of course very high. Overall, gross income grew this year by £72k from 2020/21, whilst we were also able to increase spending on patient care from £2.27m in 2020/21 to £2.43m in 2021/22.

In 2021/22, 32% of the gross income of the hospice came from charitable donations, fundraising activities and legacies (2020/21 - 46%), with patient fee income from the CCGs (NHS) contributing 40%. This in part reflects the increased number of patient rooms which, whilst increasing the number of patients cared for each year, also increased the revenue stream from the NHS

Gross income from the hospice shops, lottery and trading company contributed £975k (2020/21 - £603k), showing that the shops in particular had recovered well from the lockdown measures of the pandemic and perhaps proving their value to our local communities, who returned to the shops in numbers. The net surplus from shops was £225k, up from a £147k loss in in 2020/21, showing a fantastic performance, particularly in light of losing our warehouse due to fire half way through the year. We will continue to grow the retail estate and progress towards our target of a net contribution of £250kpa.

Legacies and donations fared less well in 2021/22. Much of this was due to the known legacies being delayed in legal process, as legal firms appeared to work much slower during the pandemic. Although the 2021/22 figure (£213k) increased significantly from 2020/21 (£51k), it still left a number of bequests unprocessed during the year. We expect this backlog to come through in the current (2022/23) financial year (as it is indeed appearing to do), with notifications totalling almost £1m in outstanding legacies. Donations inevitably dropped as supporters had less disposable income, and we received around £100k less from donors than in 2021/22 (£235k). On the other hand, our fundraising events did pick up, raising around £40k more than in 2020/21, generating £65k. All of this shows that if nothing else, fundraising income streams can be extremely volatile and difficult to predict, but there was excellent work from both our Retail and Fundraising teams last year to maintain our profile within our communities and in particular building new links within business networks. Particular mention must also be made of our Grants & Community Engagement Manager who continued to seek out and access capital monies to enable specific purchases and service developments across the hospice during a year when such funding was in short supply. The total grant income, including NHS contributions relating to the pandemic, was £588k for the year.

Lottery income suffered during the pandemic, and this has been exacerbated by banks refusing to take on new Standing Orders, our traditional route to signing up new members. As is typical for any year, the natural ‘churn’ in membership resulted in fewer players each week but with the combination of less disposable income, the inability to canvass door to door for new members during the pandemic (and the public’s natural reticence to stand at the doorstep with canvassers for health reasons), plus the added complication of having to move to a new direct debit system of sign-ups, membership has fallen. We have of course taken steps to address the direct debit situation, but this is a protracted process with the banks. We are only a little over half way towards our target of 10,000 members now, resulting in a drop in lottery net income from £226k (2020/21) to £182k this year.

Expenditure in 2021/22 grew by £280k in comparison with 2020/21, and the bulk of this additional expenditure (£158k) was on direct patient care. Other cost increases included wages, as well as rebuilding teams and augmenting support services. We also faced unexpected rises in other areas such as IT costs and our warehouse fire. But the greater part of the balance of the increase in costs was staff costs as a whole, which rose by £120k with the use of agency staff for clinical cover increasing dramatically during the pandemic, and a cost of living award for all staff. Support costs – the day to day costs of administering the hospice, such as postage, banking and the like – actually fell slightly in comparison to the previous year.

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ST JOSEPH'S HOSPICE ASSOCIATION

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2022

Overall, the charity proved to be very resilient against the impacts of the pandemic, with the clinical service operating a normal service for patients and relatives and the income generating activities flexing and adapting to the dramatically changed operating environment to give a very positive outcome for the year as a whole.

Ethical and Sustainable Fundraising

The charity maintains its own in-house fundraising team to stage fundraising events and support community fundraising initiatives and is a member of the Fundraising Preference Service. The charity subscribes to a weekly update from the Fundraising Regulator which informs of any persons contacted by the charity who no longer wish to receive communications; any such person would be removed from the charity’s database, but no such requests have been received this year. The charity also subscribes to the Fundraising Regulator’s Code of Fundraising Practice to ensure that fundraising activities at the hospice are carried out in an ethical and sustainable manner. This has helped ensure that the charity has received no complaints about fundraising activities in the last year.

The charity has adopted policies covering data protection, confidentiality and privacy for donors and supporters, including the option to opt in to fundraising communications (rather than opting out), to only hold details with the consent of the individual and to have any such details as are held, removed at the request of the ‘data owner’.

The charity uses a third party to canvass for the in-house lottery and the contract covering the arrangement embodies all of the above principles, including a methodology for bringing any conversation about lottery membership to an end after receiving a second refusal from an individual.

Reserves and investment policy

The hospice aims to have free reserves of £1.7m – equivalent to approximately six months running costs. Current levels are below this figure and now stand at £1,150,029 as detailed in Note 23 to the Accounts.

The hospice has minimal sums invested, and income during the year was just £407, a reduction from £579 in 2020/21. Returns on invested income remain low, but as free reserves increase the amount available for investment will increase and a greater return can be expected.

At the current level of reserves the trustees feel that they would be able to continue the current activities of the hospice in the medium term. The current approach of careful financial management will be maintained.

Future plans

The five year strategic plan operationalised in 2020, which identified five key themes, remains in place:

Our Vision

To reach all patients and their families in our communities who need nurse-led end of life care, offering support and compassion through our outstanding and unique service.

Our Values

Our values form the foundation on which we work and conduct ourselves, including the way we interact with patients, relatives, visitors, contractors, partner agencies, staff and volunteers. They also help define the approach we take to delivering our objectives and fulfilling our mission. In short, they are the practices we endeavour to use every day in everything we do. Our hospice values are:

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ST JOSEPH'S HOSPICE ASSOCIATION

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2022

Our Mission

We intend to realise our vision and deliver our objectives by:

Our Strategic Objectives - Summary

Priority 1 - High quality End of Life patient care

Maintaining and improving our services and facilities for our patients & their relatives:

At St Joseph’s Hospice we are committed to providing the best possible care for our patients. By remaining financially autonomous we will augment the NHS commissioning income received for each patient and focus on delivering care with compassion, respect, dignity, hospitality and trust, in line with our values. We know that we will have only one chance to ensure that each of our patients and their relatives will have a dignified, pain-fee, and peaceful end of life experience and we aim to provide this by constantly reviewing and improving our services, recruiting and training the best staff and working collaboratively alongside our partners. Improving our operating environment is a key part of this strategy, including the improvement of facilities for relatives and visitors. We will also focus on the less visible aspects of site management, including programmed maintenance schedules, site improvements and improved access to the grounds to provide a tranquil space for patients and relatives alike.

Priority 2 – Developing our services

Identifying and addressing emerging End of Life needs across our local communities:

We know that we need to continually review our service provision in order to keep pace with societal change and associated health care needs of our communities. We know that our local population will see an increase in life expectancy, but also an increase in long-term health conditions. We are likely to see more complex conditions in some of our older patients as they live longer, and an increase in comorbidities. The increasing prevalence of the various forms of dementia in an ageing population will present challenges for us – not only from our patients, but also potentially from their loved ones who may have the condition and who may visit them at the hospice. It is likely that the number of older people living alone will increase, and as social isolation has been acknowledged as an exacerbating factor in poor end of life experience we will be working to develop services that tackle or alleviate this problem for our surrounding communities.

We also know that our communities will become increasingly diverse, and our services must change to ensure that everyone, regardless of their circumstances or beliefs, not only has access but feels comfortable using the hospice, along with their relatives and friends. We will work to reach excluded and

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ST JOSEPH'S HOSPICE ASSOCIATION

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2022

marginalised groups, such as offenders, substance misusers, homeless people, and travelling communities to ensure that anyone who needs our care is able to receive it.

Priority 3 – Engaging with our communities and collaborating with our partners

Working with our supporters, partners and peers to improve and develop the services we provide to our communities:

We know that no health service is delivered in isolation, and end of life or hospice care is no exception. We have a good working relationship with our local CCG and meet regularly with them. We also have good operational relationships with our key partners and will maintain this multi-disciplinary approach to our work, using these networks to inform, innovate, and adopt new models of best practice. We must be able to demonstrate our value to our partners and funders and we will be explicit about our long term goals by sharing our plan. We want to support local delivery agendas whilst maintaining our unique service; we will be independent but collaborative, as a long standing healthcare charity operating end of life care services for over 40 years. We will maintain our links across the voluntary sector and our national dialogue with Hospice UK, both of which have served us well and ensured that our services remain relevant and supportive of local and national initiatives.

Priority 4 – Building a sustainable service for the future Ensuring that we have the resources to deliver high quality end of life services for the next stage of the hospice journey:

For the hospice, sustainability means people, spaces, technology, systems and finance. As an independent organisation with around 60% of our income generated through charitable activity, we will continue to be innovative and creative in order to develop our business model and thus make the hospice more sustainable for the long term. We cannot, and do not aspire to be, wholly funded by the NHS or CCGs but as the scale of clinical operations grows and the costs of maintaining it increases, we must ensure the hospice is run efficiently and with a sustainable business model in order to maintain the service for our patients well into the future. We can no longer rely on small-scale fundraising events to provide the level of income required to keep a 21st century healthcare facility operational. We will be ensuring that we have more predictable, robust income streams to give greater surety to our future financial plans.

Priority 5 – Good governance; a well-led, well managed and safe organisation

Creating a culture and developing the tools to ensure that the hospice is well led, compliant, safe and sustainable:

Good governance is critical to the continued safe and compliant operation of the hospice. This objective relates not just to the matter of ensuring our trustee body and management of the hospice is fit for purpose but also to our systems and checks in place across the organisation which are designed to deliver safe services, accurate measurements and management data, legal compliance. This priority is at the heart of all that we do; without good governance the hospice would be exposed to risk across clinical services, finances, staff safety and all other areas of our operation. Good governance also has very tangible positive benefits too, and we will work to ensure that the data from our monitoring systems is put to good use promoting our work, and also in more prosaic operational matters such as reducing insurance premiums.

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ST JOSEPH'S HOSPICE ASSOCIATION

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2022

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing Document

The organisation is a charitable company, incorporated in England and Wales on 9[th] August 2001, limited by guarantee under clause 6 of its Memorandum of Association. The charitable company has no share capital, being a company limited by guarantee. Liability is limited to £1 for each member in the event of its being wound up. The number of members registered at 31 March 2022 is 7. The charitable company is governed by its Memorandum and Articles of Association. The company was registered as a charity by the Charity Commissioners for all purposes on 8 January 1983 (certificate number 1090151).

Recruitment and appointment of Trustees

The Board of Trustees is made up of between seven and nine members. They may be elected at any time by trustees at Trustee Board meetings. Trustees are expected to retire after four years in office, but are eligible for re-election to the Board for a further four year term. The Chairman is elected by the trustees at a Trustee Board Meeting and serves a four year term unless he or she steps down sooner. Recruiting and retaining the right trustees is an important aspect of governing the hospice. It is important that the Board of Trustees has a balance of people with a range of skills and backgrounds who are able to contribute to the governance process.

Organisational structure

The board of trustees meets at least four times a year to direct and manage the governance of the hospice.

The trustees have ultimate responsibility for setting the direction of the hospice and their role is to ensure that the hospice is financially viable, well run and that it meets the needs for which it was set up. This work includes agreeing the hospice strategy, service developments and finances and reviewing and ratifying appropriate hospice policies and procedures. Day to day management is delegated to the members of the senior leadership team.

The Board of Trustees considers current initiatives, service developments and strategic issues at its scheduled quarterly board meetings. Comprehensive written reports are provided by the senior leadership team which are discussed and considered at the meetings. A sub committee structure comprising of finance and clinical governance sub committees meet quarterly and provides reports and recommendations to the trustee meetings.

Departmental Heads are responsible to the appropriate member of the Senior Leadership Team which is led by the Chief Executive who, in turn, is responsible to the Board of Trustees. The current Senior Management Team comprises of the Chief Executive and the Director of Clinical Services.

Trustees

The trustees, who are also the directors for the purpose of company law, and who served during the year and the period up to which the accounts were approved were:

Mrs J Daly Ms Y E Atkinson Mr D J Bricknell Dr J Welch Mr P S Morgan Mrs L Moore Mr K A Guy

Key management remuneration

Senior management remuneration is agreed by the Board of Trustees in consultation with the Chief Executive and by reference to the annual Hospice Rewards survey facilitated by Hospice UK together with data on salary levels for vacant posts advertised through the hospice network. The salaries currently being paid are commensurate with these roles in similarly sized hospices.

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ST JOSEPH'S HOSPICE ASSOCIATION

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2022

Related parties

The charity has a wholly owned non-charitable company, St Joseph's Hospice Academy Services Limited which enables it to manage its trading activities in line with charity law. The main activity of the subsidiary is the sale of promotional goods in support of the charity. All profits arising in the subsidiary are passed to the charity under the gift aid scheme. The charity provides management and other support for the trading company and is reimbursed through a management charge and during the year the charity received a management fee of £4,000 (2020/21 - £4,000). In addition, the subsidiary made charitable donations to St Joseph’s Hospice Association of £2,653 (2020/21 - £3,373).

Public benefit

The trustees have considered the Charity Commission's guidance on public benefit and, in particular, the guidance on the relief of those in need by reason of ill-health. The trustees believe this charity provides a public benefit as its principal activity is to provide palliative and end of life care services which seek to enhance the quality of life of individuals living with a life limiting condition through the provision of in-patient, community and day therapy care and through education, training and support within the hospice and to the wider health and social care economy.

Risk Management

The senior leadership team and delegated departmental heads have conducted a review of the major risks to which the hospice is exposed and systems have been established to mitigate those risks. This work is summarised in the Business Risk Register, which is presented quarterly to trustees and reviewed regularly throughout the year. A comprehensive program of regular activity, process and risk mitigation process audits is in place across the hospice.

A Clinical Risk register is maintained by the Director of Clinical Services and reviewed quarterly by the Clinical Governance Sub Committee.

A Business Continuity Plan has been developed and is updated as risks change in order to ensure the continued safe operation of critical clinical services in an emergency and the resumption of all support services at the earliest opportunity.

All staff and appropriate volunteers are required to complete the hospice-specific annual mandatory training, which covers a wide range of core competencies. The Hospice Infection Control Team carries out regular audits and provides more advanced training to clinical staff. The Food Standards Agency carries out regular inspections of the hospice and has once again rated our catering services as 'Good' with 5 stars, the highest rating.

Disclosure of information to auditors

Each of the directors has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditors are aware of such information.

On behalf of the board of trustees

Mr D Bricknell

Chair of trustees

Dated: 14[th] December 2022

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ST JOSEPH'S HOSPICE ASSOCIATION

STATEMENT OF TRUSTEES' RESPONSIBILITIES

FOR THE YEAR ENDED 31 MARCH 2022

The trustees, who are also the directors of St Joseph's Hospice Association for the purpose of company law, are responsible for preparing the Trustees' Report and the accounts in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the trustees to prepare accounts for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.

In preparing these accounts, 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 charity and enable them to ensure that the accounts comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the company’s website.

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ST JOSEPH'S HOSPICE ASSOCIATION

INDEPENDENT AUDITORS' REPORT

TO THE MEMBERS OF ST JOSEPH'S HOSPICE ASSOCIATION

Opinion

We have audited the financial statements of St Joseph’s Hospice Association (the ‘charitable company’) and its subsidiary (the ‘group’) for the year ended 31 March 2022 which comprise the Consolidated Statement of Financial Activities, the Summary Consolidated Income and Expenditure account, the Consolidated Balance Sheet, the Statement of Cashflows and Consolidated Cashflows 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 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 the provisions available for small entities, in the circumstances set out in note 26 to the financial statements, 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 trustees are responsible for the other information. The other information comprises the information included in the annual report other than the financial statements and our auditor’s report thereon. 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.

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ST JOSEPH'S HOSPICE ASSOCIATION

INDEPENDENT AUDITORS' REPORT (CONTINUED)

TO THE MEMBERS OF ST JOSEPH'S HOSPICE ASSOCIATION

Other information cont.

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 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 requires us to report to you if, in our opinion:

Responsibilities of the trustees

As explained more fully in the trustees’ responsibilities statement, the trustees 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 they 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 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 charitable company or to cease operations, or have no realistic alternative but to do so.

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ST JOSEPH'S HOSPICE ASSOCIATION

INDEPENDENT AUDITORS' REPORT (CONTINUED)

TO THE MEMBERS OF ST JOSEPH'S HOSPICE ASSOCIATION

Our 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 frameworks that are applicable to the charity and group and determined that the most significant are those that relate to fundraising regulations and Care Quality Commission requirements. We also considered those laws and regulations that have a direct impact on the financial statements such as Charity SORP including FRS 102 and Companies Act 2006.

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, included the following:

We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including override of controls) and addressed the risk through testing of journal entries to identify unusual transactions and assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed our audit procedures which included, but was not limited to:

13

ST JOSEPH'S HOSPICE ASSOCIATION

INDEPENDENT AUDITORS' REPORT (CONTINUED)

TO THE MEMBERS OF ST JOSEPH'S HOSPICE ASSOCIATION

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulations. 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 for the audit of the financial statements is located 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. 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’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Nicholas James O’Donovan (Senior Statutory Auditor) For and on behalf of Lonsdale and Marsh

Date: 14[th] December 2022

Chartered Accountants Statutory Auditor

509-510 Cotton Exchange Bixteth Street

Liverpool

L3 9LQ

14

ST JOSEPH'S HOSPICE ASSOCIATION

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR ENDED 31 MARCH 2022

----- Start of picture text -----
Unrestricted Restricted Total Unrestricted Restricted Total
funds funds funds funds
2022 2021
Notes £ £ £ £ £ £
Income from:
Donations, legacies and grants 2 1,005,484 99,603 1,105,087 652,128 908,770 1,560,898
Charitable activities 5 1,364,902 - 1,364,902 1,208,895 - 1,208,895
Other trading activities 3 975,089 - 975,089 603,430 - 603,430
Investment income 4 407 - 407 579 - 579
Total income 3,345,882 99,603 3,445,485 2,465,032 908,770 3,373,802
Expenditure on:
Raising funds 7 825,294 46,894 872,188 748,201 - 748,201
Charitable activities
Patient care 7 2,391,336 35,860 2,427,196 2,038,122 231,728 2,269,850
Total expenditure 3,216,630 82,754 3,299,384 2,786,323 231,728 3,018,051
Net gains/(losses) on investments 16 35 - 35 162 - 162
Net income/(expenditure) 129,287 16,849 146,136 (321,129) 677,042 355,913
Transfers between funds 22 / 23 13,278 (13,278) - 675,474 (675,474) -
Net movement in funds 142,565 3,571 146,136 354,345 1,568 355,913
Reconciliation of funds:
Fund balances at 1 April 2021 3,265,860 3,854 3,269,714 2,911,515 2,286 2,913,801
Fund balances at 31 March 2022 3,408,425 7,425 3,415,850 3,265,860 3,854 3,269,714
----- End of picture text -----

The statement of financial activities includes all gains and losses for the year. All incoming resources and resources expended derive from continuing activities of the group.

15

ST JOSEPH'S HOSPICE ASSOCIATION

SUMMARY CONSOLIDATED INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 MARCH 2022

----- Start of picture text -----
2022 2021
£ £
Total income 3,445,485 3,373,802
Total expenditure from income funds (3,299,384) (3,018,051)
146,101 355,751
Gains/(losses) on investments 35 162
Net income/(expenditure) for the year 146,136 355,913
----- End of picture text -----

The summary consolidated income and expenditure account is derived from the consolidated statement of financial activities on page 15 which, together with the notes on pages 19 to 36 provides full information on the movements during the year on all funds of the charitable company.

16

ST JOSEPH'S HOSPICE ASSOCIATION

CONSOLIDATED BALANCE SHEET

FOR THE YEAR ENDED 31 MARCH 2022

----- Start of picture text -----
Group Charitable Group Charitable
company company
2022 2021
Notes £ £
Fixed assets
Tangible assets 15 2,213,557 2,213,557 2,169,505 2,169,505
Investments 16 688 689 653 654
2,214,245 2,214,246 2,170,158 2,170,159
Current assets
Stock - - 749 -
Debtors 18 301,838 301,838 138,886 139,587
Cash at bank and in hand 1,118,364 1,118,364 1,191,809 1,191,803
1,420,202 1,420,202 1,331,444 1,331,390
Creditors: amounts falling due within
one year 19 (218,597) (218,598) (231,888) (231,835)
Net current assets 1,201,605 1,201,604 1,099,556 1,099,555
Total assets less current liabilities 3,415,850 3,415,850 3,269,714 3,269,714
Income funds
Restricted funds 22 7,426 7,426 3,854 3,854
Unrestricted funds
Unrestricted income funds 23 1,150,029 1,150,029 1,051,551 1,051,551
Designated funds 23 2,213,556 2,213,556 2,169,505 2,169,505
Revaluation reserve 23 44,839 44,839 44,804 44,804
3,408,424 3,408,424 3,265,860 3,265,860
3,415,850 3,415,850 3,269,714 3,269,714
----- End of picture text -----

The notes on pages 19 to 36 form part of these financial statements.

The financial statements were approved by the board of trustees on 14 December 2022 and are signed on its behalf by:

.......................................................... .......................................................... Mr D J Bricknell Mr K A Guy Trustee Trustee

Company Registration No. 04267625

17

ST JOSEPH'S HOSPICE ASSOCIATION

STATEMENT OF CASHFLOWS AND CONSOLIDATED CASHFLOWS

FOR THE YEAR ENDED 31 MARCH 2022

----- Start of picture text -----
Group Charitable Group Charitable
company company
2022 2021
£ £
Cash flows from operating activities
Net movement in funds (as per SOFA) 146,136 146,136 355,913 355,913
Adjustments for :
Depreciation 82,285 82,285 83,668 83,668
(Gains)/losses in investments (35) (35) (162) (162)
Dividends from investments (6) (6) (2) (2)
Interest receivable (401) (401) (577) (577)
(Increase)/decrease in stock 749 - - -
(Increase)/decrease in debtors (162,952) (162,251) 329,939 329,962
Increase/(decrease) in creditors (13,291) (13,237) 4,205 4,176
Net cash provided by (used in) operating activities 52,485 52,491 772,984 772,978
Cash flows from investing activities
Purchase of property, plant and equipment (126,337) (126,337) (29,429) (29,429)
Dividends from investments 6 6 2 2
Interest receivable 401 401 577 577
Net cash provided by (used in) investing activities (125,930) (125,930) (28,850) (28,850)
Change in cash and cash equivalents in the year (73,445) (73,439) 744,134 744,128
Cash and cash equivalents as at 1 April 2021 1,191,809 1,191,803 447,675 447,675
Cash and cash equivalents as at 31 March 2022 1,118,364 1,118,364 1,191,809 1,191,803
----- End of picture text -----

18

ST JOSEPH'S HOSPICE ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2022

1 Accounting Policies

1.1 Company Information

St Joseph's Hospice Association is a private company limited by guarantee, incorporated in England and Wales. Its wholly owned subsidiary, St Joseph's Academy Services Limited, is a private company limited by shares incorporated in England and Wales (company no: 04271430). The registered office of both the parent and subsidiary company is Ince Road, Thornton, Liverpool, L23 4UE.

1.2 Basis of accounting

The charitable company is a public benefit entity as defined by FRS 102.

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. The financial statements have been prepared under the historical cost convention with the exception of investments stated at market value and modified for the revaluation of leasehold interest.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

1.3 Group Financial Statements

The financial statements consolidate the results of the charitable company and its wholly owned subsidiary St Joseph's Academy Services Limited on a line-by-line basis. A separate Statement of Financial Activities and Income and Expenditure account for the charitable company itself are not presented because the charitable company has taken advantage of the exemptions conferred by s408 of the Companies Act 2006. A summary of the financial performance of the charitable company can be found in Note 6.

1.4 Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.5 Income

All income is recognised when the charitable company 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 the amount can be measured reliably.

Grants which are to be used for specific purposes, as laid down by the donor, are treated as restricted funds. Expenditure which meets the criteria is charged to the fund. Grants, including those received from government agencies are recognised on the performance model. They are included under income from charitable activities.

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

19

ST JOSEPH'S HOSPICE ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2022

1 Accounting Policies

(continued)

1.5 Income (continued)

Donated goods are not recognised as incoming resources in the Statement of Financial Activities on receipt of an item as it is impractical and not a cost effective use of resources. Instead the value of the donated goods is recognised as income when sold.

In accordance with the SORP (FRS102), the general volunteer time is not recognised in the Statement of Financial Activities. Refer to the trustee’s annual report for more information on their contribution.

Lottery income is recognised on a receivable basis. Any income lottery income received in advance is deferred until the following accounting period.

Legacy income – entitlement to legacy income is taken to be either the earlier of estate accounts being finalised or a notification by the executor of a payment to be made or cash received.

Events – income from major events is recognised in the period in which the event takes place. Income received in advance is included in deferred income.

Investment income is accounted for on an accruals basis.

Gifts in kind are valued at their realised amount or the equivalent to an alternative commercial supply, and are included in the Statement of Financial Activities as appropriate. In accordance with the SORP (FRS102), the general volunteer time is not recognised in the Statement of Financial Activities.

Income from trading activities is recognised on point of sale for both donated and purchased goods.

1.6 Resources expended

Resources expended are included in the Statement of Financial Activities on an accruals basis. Expenditure includes any VAT that cannot be fully recovered and is reported as part of the expenditure to which it relates.

Certain expenditure is directly attributable to specific activities and has been included in those cost categories. Certain other costs which are attributable to more than one activity are apportioned across the cost categories on the basis of the estimated percentage of costs on those activities.

1.7 Fund accounting

Funds held by the charitable company are either:

20

ST JOSEPH'S HOSPICE ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2022

1 Accounting Policies

(continued)

1.8 Tangible fixed assets and depreciation

Tangible fixed assets other than freehold land are stated at cost less depreciation. The costs of minor additions, being those below £500, are not capitalised. Depreciation is provided at rates calculated to write off the cost or valuation less estimated residual value of each asset over its expected useful life, as follows:

Freehold land not depreciated Freehold buildings 2% per annum on cost Fixtures, fittings and equipment 15% per annum on reducing balance / 20% per annum on cost / 33.33 % per annum on cost / 15% per annum on cost Motor vehicles 25% per annum on reducing balance

1.9 Financial instruments

The charitable company has financial assets and financial liabilities of a kind which qualify as basic financial instruments. Basic financial instruments are initially recognised at the amount receivable or payable. Investments are held at fair value.

1.10 Investments

Fixed asset investments are stated at market value at the balance sheet date and the gain or loss taken to the Statement of Financial Activities.

Investment in subsidiary, St Joseph's Academy Services Limited, is stated at cost in the charitable company's balance sheet.

1.11 Stock

Stocks of bought in goods are stated at the lower of cost and estimated selling price. Cost comprises direct materials. As it is not practical to value items donated for resale on receipt because of the volume of low value items, they are not recognised in the financial statements until they are sold.

1.12 Debtors

Debtors are basic financial assets and are recognised at the settlement amount due. Prepayments are valued at the amount prepaid.

1.13 Cash at bank and in hand

Cash at bank and in hand are basic financial assets, and include cash in hand and deposits held with banks.

1.14 Creditors

Creditors are recognised at their settlement amount after allowing for any trade discounts due. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities.

21

ST JOSEPH'S HOSPICE ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2022

1 Accounting Policies

(continued)

1.15 Leasing and hire purchase commitments

Assets obtained under hire purchase contracts and finance leases are capitalised as tangible assets and depreciated over the shorter of the lease term and their useful lives. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the Statement of Financial Activities so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

Rentals payable under operating leases are charged against income on a straight line basis over the period of the lease.

1.16 Pensions

The charitable company operates a defined contribution pension scheme. Contributions are charged as an unrestricted expense in the financial statements as they become payable in accordance with the rules of the scheme. The assets of the scheme are held in an independently administered fund.

The charitable company also contributes to several individual private pension schemes. Contributions to these schemes are treated on the same basis as its own defined contribution pension scheme.

The charitable company also contributes to the NHS Scheme for certain former NHS employees, which is a defined benefit scheme. The charitable company is obliged to make contributions to the scheme at a rate of 14% of pensionable pay. The charitable company has no commitment to make good any actuarial deficit, nor entitlement to a benefit from surplus funding. On this basis, the scheme is accounted for as a defined contribution pension scheme. Contributions are charged to the Statement of Financial Activities as an unrestricted expense as they fall due.

1.17 Employment costs

The costs of short-term employee benefits are recognised as a liability and an expense.

Where relevant, the cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Where relevant, termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

22

ST JOSEPH'S HOSPICE ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2022

2 Donations, legacies and grants

Unrestricted
funds
£
Donations and legacies
Donations and gifts
235,600
Legacies received
212,879
Events
65,189
Other income
3,435
Grants
488,381
1,005,484		 Restricted
funds
£
-
-
-
-
99,603
99,603		 Total
2022
£
235,600
212,879
65,189
3,435
587,984
1,105,087		 Unrestricted
funds
£
334,444
50,982
19,237
1,430
246,035
652,128		 Restricted
funds
£
-
-
-
-
908,770
908,770		 Total
2021
£
334,444
50,982
19,237
1,430
1,154,805
1,560,899
Unrestricted fund grants in 2022 include income from the following:
Coronorvirus Job Retention Scheme
11,432
11,432
3
Other trading activities
Shops
Shop income
Shop staff costs
Shop rent, rates and utilities
Other shop expenses
Profit/(loss) arising from shops
Number of shops trading in year
Lottery
Lottery income
Lottery prizes (see Note 8)
Lottery commission and other costs
Profit arising from lottery
Trading company
Income
Cost of sales
Gross profit arising from trading company
Summary
Income
Cost of activities for generating funds
Trading company cost of sales		 2022
£
695,036
(228,181)
(171,406)
(70,905)
224,544
10
268,263
(78,000)
(8,253)
182,010
11,790
(5,102)
6,688
975,089
(556,745)
(5,102)
413,242		 95,410
95,410
2021
£
298,691
(227,536)
(178,290)
(40,216)
(147,351)
11
294,211
(78,000)
10,384
226,595
10,528
(3,120)
7,408
603,430
(513,658)
(3,120)
86,652

23

ST JOSEPH'S HOSPICE ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2022

4
Investment income
Income from listed investments
Interest receivable
5
Charitable activities
Patient care fee income		 2022
£
6
401
407
2022
£
1,364,902		 2021
£
2
577
579
2021
£
1,208,895

6 Financial performance of charity

The consolidated statement of financial activities includes the results of the charitable company's wholly owned subsidiary St Joseph's Academy Services Limited.

The summary financial position of the charitable company alone is:
Income
Management fee and gift aid from subsidiary company
Expenditure on charitable activities
Governance costs
Net income/(expenditure)
Gains/(losses) of investments
Net movement in funds
Total funds brought forward
Total funds carried forward
Represented by
Restricted income funds
Unrestricted income funds		 2022
£
3,433,695
6,653
3,440,348
3,285,310
8,938
3,294,248
146,100
35
146,135
3,269,714
3,415,849
8,306
3,407,544
3,415,850		 2021
£
3,363,274
7,373
3,370,647
3,005,958
8,938
3,014,896
355,751
162
355,913
2,913,801
3,269,714
3,854
3,265,860
3,269,714

24

ST JOSEPH'S HOSPICE ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2022

7 Total resources expended

Staff
costs
£
Notes
Costs of raising funds
8
Costs of generating
voluntary income
257,644
Cost of activities for
generating funds
181,287
Trading company
cost of sales
-
438,931
Charitable activities
Patient care
9
1,625,536
Support costs
10
128,304
Governance costs
-
Total
1,753,840
2,192,771		 Unrestricted
reserves
Depreciation
£
-
-
-
-
82,285
-
-
82,285
82,285		 Other
costs
£
52,698
328,564
5,102
386,364
472,145
74,128
8,938
555,211
941,575		 Staff
Other
costs
costs
£
£
-
-
46,893
-
-
-
46,893
-
9,184
21,676
-
5,000
-
-
9,184
26,676
56,077
26,676
Restricted
reserves		 Total
2022
£
310,342
556,744
5,102
872,188
2,210,826
207,432
8,938
2,427,196
3,299,384

Governance costs relates to the auditors' fees of £8,938 including irrecoverable VAT.

25

ST JOSEPH'S HOSPICE ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2022

----- Start of picture text -----
7 Total resources expended continued
Unrestricted Restricted
reserves reserves
Staff Depreciation Other Staff Other Total
costs costs costs costs 2021
Notes £ £ £ £ £
Costs of raising funds 8
Costs of generating
- - -
voluntary income 199,191 32,232 231,423
Cost of activities for
- - -
generating funds 227,536 286,122 513,658
Trading company
cost of sales - - 3,120 - - 3,120
- - -
426,727 321,474 748,201
Charitable activities
Patient care 9 1,381,166 83,668 364,238 200,815 30,913 2,060,800
Support costs 10 120,459 - 79,653 - - 200,112
Governance costs - - 8,938 - - 8,938
Total 1,501,625 83,668 452,829 200,815 30,913 2,269,850
1,928,352 83,668 774,303 200,815 30,913 3,018,051
----- End of picture text -----

Governance costs relates to the auditors' fees of £8,938 including irrecoverable VAT.

8 Costs of raising funds

Other costs of generating voluntary income comprise:
Fundraising costs
Telephone
Printing, postage and stationery		 2022
£
44,532
876
7,290
52,698		 2021
£
24,712
963
6,557
32,232

26

ST JOSEPH'S HOSPICE ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2022

----- Start of picture text -----
8 Costs of raising funds (continued)
2022 2021
£ £
Other cost of activities for generating funds comprise:
Shop rent, rates and utilities 171,406 178,290
Other shop costs 54,745 26,776
Equipment hire - vans 16,160 13,440
Lottery prizes 78,000 78,000
Lottery commission and other costs 8,253 (10,384)
328,564 286,122
Trading company cost of sales
Purchase of goods for resale 5,102 3,120
9 Charitable activities
2022 2021
£ £
Other costs relating to UK hospice activities comprise:
Laundry and cleaning 49,637 37,726
Hospice expenses 217,123 140,426
Sundry expenses 4,119 455
Repairs and maintenance 48,992 48,130
Food 40,190 34,967
Rates and water rates 20,715 17,765
Light and heat 53,238 47,439
Travelling 39 144
Training 9,163 4,268
Insurance 27,615 31,473
Telephone 1,314 1,445
Restricted fund expenditure (see Note 22)
Training fund 880 -
Dementia care fund 650 -
Bedside table fund 1,500 -
Refurbishment fund 4,300 -
-
Bee project fund 1,000
V R Equipment fund 840 -
Fence Fund 5,000 -
Recliner chair fund 2,400 -
-
Suction pump fund 4,608
Patient support group 100 -
Defibrilator fund (equipment hire) 398 398
PPE fund - 12,500
Dementia care fund - 400
-
Bedding fund 5,000
Mattress fund - 9,750
-
Syringe pump fund 2,865
493,821 395,151
----- End of picture text -----

27

ST JOSEPH'S HOSPICE ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2022

----- Start of picture text -----
10 Support costs
2022 2021
£ £
Support costs relating to UK hospice activities comprise:
Telephone 5,693 1,589
Postage and stationery 6,551 3,270
Legal and professional fees 30,554 35,979
Bank charges 6,370 4,244
-
eBay and PayPal fees (included in fundraising costs from 2022) 4,179
Repairs and maintenance 244 -
Subscriptions 4,139 3,890
Computer costs 18,618 17,485
Sundry expenses 794 204
Equipment hire 1,165 8,813
Restricted funds
-
Feasibility fund 5,000
79,128 , 79,653
----- End of picture text -----

11 Trustees

None of the trustees (or any persons connected with them) received any remuneration, expenses or benefits during the year.

28

ST JOSEPH'S HOSPICE ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2022

12 Employees

Number of employees

The average number of employees during the year was:

Hospice
Shops, fundraising and publicity
Support
Employment costs
Hospice
Shops, fundraising and publicity
Support
Employment costs
Wages and salaries
Social security costs
Other pension costs
Number of employees whose total employee benefits for the year fell
between each band from £60,000 upwards:-
£60,001 - £70,000
£80,001 - £90,000		 2022
Number
73
21
7
101
2022
£
1,634,720
485,824
128,304
2,248,848
2022
£
1,996,858
158,208
93,782
2,248,848
2022
Number
1
1		 2021
Number
71
21
7
99
2021
£
1,581,981
426,727
120,459
2,129,167
2021
£
1,889,221
149,172
90,774
2,129,167
2021
Number
1
1

Agency nursing or care staff are used when it is not able to sustain the staffing levels to which it is committed from its employees or in response to particular needs. Agency costs are included in hospice expenses (see Note 9) and the cost during the year was £100,760 (2021 - £52,045).

The total employee benefits of the key management personnel of the group, excluding pension contributions, was £150,281 (2021 - £145,344).

29

ST JOSEPH'S HOSPICE ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2022

13 Taxation

The charitable company is a registered charity and as such is exempt from taxation on its income so long as this is applied for charitable purpose. No taxation charge arises in the subsidiary company.

----- Start of picture text -----
||||| |---|---|---|---| |14|Net incoming/outgoing resources|2022|2021| |£|£| |Net incoming/outgoing resources is stated after charging:| |Depreciation of fixed assets|82,285|83,668| |Auditors' remuneration|8,938|8,938| |Hire of equipment|17,723|22,651|

----- End of picture text -----

15 Tangible fixed assets - group and charitable company

----- Start of picture text -----
||||| |---|---|---|---| |Freehold|Fixtures,|Total| |land and|fittings and| |buildings|equipment| |£|£|£| |Cost or valuation| |At 1 April 2021|2,696,651|899,667|3,596,318| |Additions|106,237|20,100|126,337| |-| |Disposals|(20,720)|(20,720)| |At 31 March 2022|2,802,888|899,047|3,701,935| |Depreciation and impairment| |At 1 April 2021|622,757|804,056|1,426,813| |Charge for the year|55,578|26,707|82,285| |-| |Disposals|(20,720)|(20,720)| |At 31 March 2022|678,335|810,043|1,488,378| |Carrying amount| |At 31 March 2022|2,124,553|89,004|2,213,557| |At 31 March 2021|2,073,894|95,611|2,169,505|

----- End of picture text -----

In line with the charitable company's accounting policy, the freehold land and buildings are included at cost less depreciation except for freehold land which is not depreciated. It is noted that in August 2015 a valuation of the property was undertaken by Sutton Kersh showing a value of £2,500,000.

30

ST JOSEPH'S HOSPICE ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2022

16 Fixed asset investments

Listed
Unlisted
Total
£
£
£
Market value
At 1 April 2021
653
-
653
Change in value in year
35
-
35
Realised in year
-
-
-
At 31 March 2022
688
-
688
Unrestricted funds
688
-
688
The investment assets are held:
In the UK
-
-
-
Outside the UK
688
-
688
688
-
688
Historical cost:
At 31 March 2022
-
-
-
At 31 March 2021
-
-
-
Group		 Listed
Unlisted
Group
Total
£
£
£
£
653
-
1
654
35
-
-
35
-
-
-
-
688
-
1
689
688
-
1
689
-
-
1
1
688
-
-
688
688
-
1
689
-
-
1
1
-
-
1
1
Charitable company

17 Subsidiary undertakings

The wholly owned trading subsidiary St Joseph's Academy Services Limited (company registration number 04271430) is incorporated in the United Kingdom and pays all of its profits to the charitable company by gift aid. St Joseph's Academy Services Limited sell merchandise for fundraising purposes.

The charitable company owns the entire share capital of one ordinary share of £1. The summary financial performance of the subsidiary alone is:

Turnover
Cost of sales and administration costs
Net profit
Management fee paid to the charitable company
Amount gift aided to the charitable company
Retained in subsidiary
The assets and liabilities of the subsidiary were:
Current assets
Current liabilities
Total net assets
Aggregate share capital and reserves		 2022
£
11,790
(5,137)
6,653
(4,000)
(2,653)
-
61
(60)
1
1		 2021
£
10,528
(3,155)
7,373
(4,000)
(3,373)
-
754
(753)
1
1

31

ST JOSEPH'S HOSPICE ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2022

----- Start of picture text -----
18 Debtors Group Charity Group Charity
2022 2022 2021 2021
£ £ £ £
Trade debtors 128,319 128,319 91,079 91,079
Amounts owed by group undertakings - - - 701
Other debtors 9,364 9,364 12,463 12,463
Prepayments and accrued income 164,155 164,155 35,344 35,344
301,838 301,838 138,886 139,587
19 Creditors: Group Charity Group Charity
amounts falling due within one year 2022 2022 2021 2021
£ £ £ £
Trade creditors 74,441 74,441 72,371 72,371
Amounts owed to group undertakings - 61 - -
Taxes and social security costs 37,754 37,694 33,320 33,267
Other creditors 48,381 48,381 58,834 58,834
Accruals 58,021 58,021 67,363 67,363
218,597 218,598 231,888 231,835
----- End of picture text -----

20 Pension and other post-retirement benefit commitments

The charitable company enabled a number of staff to contribute to either their NHS Pension Scheme or to their private scheme. Employer pension contributions to these schemes amounted to £50,596 (2021 - £42,570). Total employer and employee contributions of £9,134 (2021 - £7,563) were due to these schemes at the year end and are included in creditors.

During the year the employer pension contributions to the workplace pension scheme amounted to £43,186 (2021 - £48,261). Total employer and employee contributions of £11,773 (2021 - £20,330) were due to this scheme at the year end and is included in creditors.

21 Share capital

The charitable company is limited by guarantee.

32

ST JOSEPH'S HOSPICE ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2022

22 Restricted funds

The income funds of the charitable company include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:

Defibrilator fund
Training fund
Dementia care fund
Kickstart fund
Bedside table fund
Refurbishment fund
Bee project fund
V R Equipment fund
Fence Fund
Recliner chair fund
Feasibility study fund
Suction pump fund
Patient support group
Garden Furniture fund
Defibrilator fund
Overseas hospice fund
PPE fund
Building fund
Flooring fund
Training fund
Dementia care fund
Bedding fund
Student fund
Service delivery fund
NHS England Grants
Mattress fund
Syringe pump fund		 Balance at
1 April
2021
£
1,204
2,000
650
-
-
-
-
-
-
-
-
-
-
3,854
Balance at
1 April
2020
£
1,602
684
-
-
-
-
-
-
-
-
-
-
-
2,286		 Incoming
resources
Resources
expended
Transfers
£
£
£
-
(398)
-
2,000
(880)
-
-
(650)
-
56,076
(56,076)
-
1,500
(1,500)
-
4,301
(4,301)
-
1,000
(1,000)
-
9,200
(840)
(8,360)
5,000
(5,000)
-
5,900
(2,400)
-
5,000
(5,000)
-
4,608
(4,608)
-
100
(100)
-
4,918
-
(4,918)
99,603
(82,753)
(13,278)
Incoming
resources
Resources
expended
Transfers
£
£
£
-
(398)
-
-
(684)
-
12,500
(12,500)
-
2,000
-
(2,000)
7,640
-
(7,640)
2,000
-
-
1,050
(400)
-
5,000
(5,000)
-
941
(941)
-
199,190
(199,190)
-
665,834
(665,834)
9,750
(9,750)
-
2,865
(2,865)
-
908,770
(231,728)
(675,474)
Movement in funds
Movement in funds		 Balance at
31 March
2022
£
806
3,120
-
-
-
-
-
-
-
3,500
-
-
-
-
7,426
Balance at
31 March
2021
£
1,204
-
-
-
-
2,000
650
-
-
-
-
-
-
3,854

33

ST JOSEPH'S HOSPICE ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2022

23 Unrestricted funds

The unrestricted funds include a revaluation reserve which represents:

Designated fixed asset fund which represents reserves set aside by the trustees showing the extent to which funds are invested in tangible fixed assets for use by the charitable company and therefore not available for other purposes.

General fund
- core reserve
Revaluation reserve
- land and buildings
Revaluation reserve
- investments
Designated fund
- tangible fixed assets
General fund
- core reserve
Revaluation reserve
- land and buildings
Revaluation reserve
- investments
Designated fund
- tangible fixed assets		 Balance at
1 April
2021
£
1,051,551
44,151
653
2,169,505
3,265,860
Balance at
1 April
2020
£
643,129
44,151
491
2,223,744
2,911,515		 Incoming
resources
£
3,246,103
-
-
113,059
3,359,162
Incoming
resources
£
2,445,243
-
-
19,789
2,465,032		 Resources
expended
Transfers
£
£
(3,134,347)
(13,278)
-
-
-
-
(82,286)
13,278
(3,216,633)
-
Resources
expended
Transfers
£
£
(2,702,655)
665,834
-
-
-
-
(83,668)
9,640
(2,786,323)
675,474
Movement in funds
Movement in funds		 Investments
gains/losses
£
-
-
35
-
35
Investments
gains/losses
£
-
-
162
-
162		 Balance at
31 March
2022
£
1,150,029
44,151
688
2,213,556
3,408,424
Balance at
31 March
2021
£
1,051,551
44,151
653
2,169,505
3,265,860

34

ST JOSEPH'S HOSPICE ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2022

----- Start of picture text -----
24 Analysis of net assets between funds
Unrestricted Restricted Total
funds funds
£ £ £
Fund balances at 31 March 2022 are represented by:
-
Tangible fixed assets 2,213,556 2,213,556
Investments 688 - 688
Current assets 1,411,896 7,426 1,419,322
-
Creditors amounts due within one year (218,537) (218,537)
3,407,603 7,426 3,415,029
Unrealised gains included above:
- - -
On tangible fixed assets
On investments 688 - 688
688 - 688
Reconciliation of movements in unrealised gains:
-
Unrealised gains at 1 April 2021 44,804 44,804
Net profit on revaluations in year 35 - 35
-
Unrealised gains at 31 March 2022 44,839 44,839
Unrestricted Restricted Total
funds funds
£ £ £
Fund balances at 31 March 2021 are represented by:
-
Tangible fixed assets 2,169,504 2,169,504
Investments 653 - 653
Current assets 1,327,590 3,854 1,331,444
-
(231,887) (231,887)
3,265,860 3,854 3,269,714
Unrealised gains included above:
- - -
On tangible fixed assets
On investments 653 - 653
653 - 653
Reconciliation of movements in unrealised gains:
-
Unrealised gains at 1 April 2020 44,642 44,642
Net profit on revaluations in year 162 - 162
-
Unrealised gains at 31 March 2021 44,804 44,804
----- End of picture text -----

35

ST JOSEPH'S HOSPICE ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022

25 Commitments under operating leases

At 31 March 2022 the group had future minimum commitments under non-cancellable operating leases as follows:

Within one year
Between two and five years
After five years		 2022
2021
£
£
114,750
121,000
207,728
207,416
45,541
135,041
368,019
463,457
Land and buildings		 2022
2021
£
£
-
682
-
-
-
-
-
682
Other

26 Auditors' Ethical Standards

In common with many businesses of our size and nature we use our auditors to assist with the preparation of the financial statements and, with regard to the subsidiary, to submit returns to the tax authorities.

27 Related party transactions

There are no related party transactions which require disclosure.

36