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2023-03-31-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 2023

ST JOSEPH'S HOSPICE ASSOCIATION

CONTENTS

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Page
Legal and administrative information 1
Trustees' report 2 – 11
Statement of trustees' responsibilities 12
Independent auditors' report 13 – 16
Consolidated statement of financial activities 17
Summary consolidated income and expenditure account 18
Consolidated balance sheet 19
Consolidated cash flow statement 20
Notes to the financial statements 21 – 38
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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 2023

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 2023. 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 2022/23 was approximately £245,000.

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 (2021/22 - £4,000) and made a charitable donation of £5,980 (2021/22- £2,653) 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.’

As we emerged from the more severe effects of the pandemic into a comparatively normal operating environment, albeit with the shadow of Covid-19 and its attendant risks still looming, we were able to focus once again on developing our site and services in line with our strategic aims. However, in the immediate aftermath of the crisis we, as with other charities, have been faced with the economic challenges from other factors such as energy prices and inflationary pressures that have not been seen for many years, which have affected both our income and our running costs. Income has been affected by the level of donations and general charitable giving, as our communities and supporters clearly feel the impact on their own households. NHS commissioning increases failed to keep pace with inflation and consequently this income stream was also impacted. Our expenditure was affected by the rising costs of energy and other consumables, and pay awards which were the subject of much news coverage during the year; the hospice should and does attempt to achieve parity with NHS rates of pay, despite the commissioning rates not reflecting this.

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ST JOSEPH'S HOSPICE ASSOCIATION

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2023

But despite the constant pressures of maintaining a sustainable service for our patients it is pleasing to report the very positive financial position in the accounts and also the many and various site developments and collaborative activities undertaken during the year, which are summarised below.

External Partnerships

During the year we completed our partnership working with Manchester Metropolitan University, which conducted research into developing a new end of life care model for people with substance misuse issues. We concluded by hosting a staff training session delivered by academics from the university and consolidating our links with local agencies from whom we may expect referrals in the future.

We also developed a working relationship with our local prison with a view to up-skilling their Family Support Officers, who work with prisoners and their families. Our focus has been on awareness raising, communications skills, and some practical aspects of providing end of life care, whether in the hospice or in-situ at the prison.

We continue to work with our regional hospice partners through the North West Hospice meetings, which also serve as an interface with Hospice UK, and through our Integrated Care Board (ICB) engagement model, the Cheshire and Merseyside Collaborative. In addition, we also met with other voluntary sector representatives through a number of forums, including the 800 Group – a collaborative comprising Chief Executive Officers from a variety of local charities – and the local Health and Social Care Forum, which allows for interaction in a group setting with key agencies including our local Place Directorate.

Through the 800 Group we also participate in an annual Volunteer Awards Evening – this is in addition to our own hospice awards evening – which brings together volunteers from charities across Merseyside to celebrate and recognise their efforts.

Our working relationship with the Care Quality Commission remains good, with our Clinical Director having regular updates with them, as well as sharing quarterly reports on hospice activity. Our patient feedback remains excellent, as evidenced by our 5-star rating on the ‘I Want Great Care’ website.

Community Engagement

Our strategic planning has committed the hospice to extend and expand our community engagement and we have been progressing this objective in a number of ways; our bee hives, established and maintained by a local apiarist, have been thriving and have allowed us to produce a limited batch of ‘Hospice Honey’ which sold out almost immediately. The hives are sited in our new wildflower meadow, which will support not only the bees themselves but also a range of other invertebrates and wildlife on our biodiversity-rich site. To further encourage visitors from our local communities we have also installed a new woodland pathway through the hospice’s twelve-acre site and in the coming year will be enhancing this with wildlife interpretation panels and seating. We have received valuable support from a local (ex-wildlife trust) volunteer to help develop content and species information for the new interpretation panels. The pathway is designed to a mobility standard, thereby allowing those patients who are able to spend time outdoors, and other wheelchair users, to access the woods. We were able to access a grant from the Liverpool City Region Community Environment Fund to pay for this work.

A further development worthy of note is our community garden, raised planters, and greenhouse, maintained by our team of volunteers and led by our Catering Manager. This project made use of some redundant space at the rear of the hospice, and not only provides fresh produce for use in patient meals but has also, in an unintended consequence, created a focal point for conversations and meetings for relatives, patients and staff. The project has also resulted in increased interest from new and existing volunteers alike.

These improvements and enhancements to the grounds are part of a wider strategy to improve wellbeing for patients, relatives, staff, and visitors and will complement our proposed new wellbeing hub (see below) in making the hospice walls ‘permeable’ by joining the internal and external environments together.

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ST JOSEPH'S HOSPICE ASSOCIATION

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2023

Our final engagement activity has been our podcasts; most of these have been recorded on-site at the hospice, and cover a range of activities from volunteering to our clinical care, but we have also participated in a community podcast hosted by a local community group (Liverpool Online). We will be continuing with these as they seem, judging from the download data, to be very popular.

Site Improvements & Development

We have been steadily working to update and improve the facilities at the hospice, with projects including the following;

Future Work

Our main aspirations for the future are centred on our plans for a wellbeing hub, providing non-clinical therapies as well as a serviced communal space with café and a community meeting room. The new building will also give us the opportunity to launch more outreach services in future by providing additional office space. This is a huge project and we will need to raise significant capital funds to make it a reality, but we do have significant community support, as well as draft plans in place.

On a smaller scale, we will be developing a new nurse’s station on one of our wards to update and modernise the existing facilities. This has been supported by grant funding and will take place during 2023/4. Likewise, we are planning for the introduction of air conditioning throughout the clinical areas as the many recent hot spells over the past few years have been too much for our portable units.

On a more strategic note, we will be looking at consolidating and diversifying our income streams to offset the pressures from diminishing NHS commissioning rates. We will also be planning for the introduction of a new electronic patient record system to facilitate better communication and integration with healthcare partners, as well as enabling improved patient care. We will be establishing a planned major works programme for the fabric of the hospice, the main building of which is now 100 years old, and will be establishing a sinking fund for this purpose.

The trustees and staff are proud of the way in which the hospice has managed the extraordinary challenges of the recent past, and of the strong position in which the charity finds itself. In March 2024 the hospice will have been in operation for 50 years – an achievement that we will be celebrating throughout the year – and everyone currently involved in providing our valuable service will be doing everything possible to ensure that it continues to care for future generations of patients and their families. In conclusion, we have no concerns about the ability of the hospice to continue its operations through 2023/24 in terms of financial viability, and we fully 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 2023

Financial review

Income generation

In 2022/23 the hospice recorded an operating surplus of £361,306, increasing the general reserves to £1,521,777 with a further £10,530 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 £461k from 2021/22, whilst we were also able to increase spending on patient care from £2.43m in 2021/22 to £2.66m in 2022/23.

In 2022/23, 63% of the gross income of the hospice came from charitable donations, fundraising activities, shop sales, lottery income, and legacies (2021/22 - 60%), with patient fee income from the CCGs (NHS) contributing 37% (2021/22 – 40%).

Gross income from the hospice shops, lottery and trading company contributed £1.076m (2021/22 - £975k), 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 £317k, up from £225k in in 2021/21, showing another excellent performance by the retail staff and volunteers. We will continue to grow the retail estate to increase our revenue from this valuable income stream.

In 2022/23 the donations we received increased slightly by £8k, from £236k in 2021/22 to £244k. The general trend across the charitable sector suggests donations are falling, so this increase demonstrates strong support for the hospice in times of significant financial hardship for many people.

Legacies in 2022/23 also improved significantly on 2021/22 in terms of notification and receipts, as the backlog in processing which occurred during the pandemic continued to ease, and notifications and payments flowed through from solicitors. The accrued figure for 2022/23 was £753k (the actual receipts being slightly lower), a significant increase on 2021/22 (£213k). We expect this figure to fall slightly in 2023/24 as the backlog is cleared, although the records indicate that c£900k is still to be received.

Receipts from fundraising events in 2022/23 were down by £9k against the previous year, with one of the two ‘Ladies Days’ being cancelled and lower attendances at other events. As we have observed in the past, fundraising income streams can be extremely volatile and difficult to predict, but there was excellent work from both our Retail and Fundraising teams to maintain our profile within our communities and in particular building new links within business networks. Grant income was £343k for the year, including the outstanding NHS contributions relating to the pandemic. This is an expected reduction from 2021/22 (£588k) as the level of support from the NHS tailed off at the end of the pandemic, and similar grant programmes from other trusts and funders aimed previously at supporting organisations through the crisis also tapered off.

Our hospice lottery yielded higher gross receipts in 2022/23 (£271,713) compared with the previous year (£268,263), despite the difficulties experienced in migrating to a direct debit system. A long-running and protracted process with the bank meant that we were unable to canvass for new members for much of the year, and with natural ‘churn’ accounting for around 10% of players dropping out of the lottery, the income did not grow as much as we had hoped. The commission paid to canvassers during the year (£41k) meant that, despite growing the overall receipts, the net surplus was reduced by £39k. The banking issues have now been fully resolved and we have been able to resume canvassing for new members with our contracted canvassing team. Our target remains set at a net contribution of £250k (which requires a playing membership of 10,000, and we clearly still have some way to go in this respect.

Expenditure in 2022/23 grew by £246k in comparison with 2021/22, and as in previous years the bulk of this additional expenditure (£230k) was on direct patient care. Other cost increases included wages across the hospice, as well as the burden from energy prices, inflation, and the unavailability of some regular goods and services due to the many external environmental factors (Ukraine, Brexit and the after-effects of the pandemic). We were, however, able to find savings by reviewing and consolidating contracts. We are a

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ST JOSEPH'S HOSPICE ASSOCIATION

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2023

founder member and shareholder of the Hospice Quality Partnership – a nationwide group purchase scheme for hospices – and have sourced several services through this scheme, making savings on a variety of products and contracts.

Overall, the charity proved to be very resilient against the various external financial pressures, increasing the free reserves to the highest level in the charity’s history and giving a very positive outcome for the year as a whole.

Reserves and investment policy

The hospice aims to have free reserves of £2m – equivalent to approximately six months running costs. Current levels are below this figure and now stand at £1,521,777 as detailed in Note 23 to the Accounts.

The hospice has minimal sums invested, and income during the year was £3,702, a significant increase from £407 in 2021/22. As free reserves increase the amount available for investment and gains from interest on funds held at the bank 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

Our five-year strategic plan operationalised in 2020 identified five key themes, and remains in place. The plan is reviewed annually, typically in January, and objectives are cascaded to managers and teams. A summary of the vision and plans follows:

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:

The hospice expects all trustees, staff and volunteers to abide by the Nolan Principles of Public Life, i.e.

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ST JOSEPH'S HOSPICE ASSOCIATION

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2023

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 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

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ST JOSEPH'S HOSPICE ASSOCIATION

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2023

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 2023

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 2023 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 2023

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 (2021/22 - £4,000). In addition, the subsidiary made charitable donations to St Joseph’s Hospice Association of £5,980 (2021/22 - £2,653).

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.

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.

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ST JOSEPH'S HOSPICE ASSOCIATION

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2023

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: 7[th] December 2023

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ST JOSEPH'S HOSPICE ASSOCIATION

STATEMENT OF TRUSTEES' RESPONSIBILITIES

FOR THE YEAR ENDED 31 MARCH 2023

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 2023 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.

14

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:

15

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: 7[th] December 2023

Chartered Accountants Statutory Auditor Bixteth Street Liverpool L3 9LQ

509-510 Cotton Exchange Bixteth Street

16

ST JOSEPH'S HOSPICE ASSOCIATION

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR ENDED 31 MARCH 2023

----- Start of picture text -----
Unrestricted Restricted Total Unrestricted Restricted Total
funds funds funds funds
2023 2022
Notes £ £ £ £ £ £
Income from:
Donations, legacies and grants 2 1,357,836 39,126 1,396,962 1,005,484 99,603 1,105,087
Charitable activities 5 1,429,569 - 1,429,569 1,364,902 - 1,364,902
Other trading activities 3 1,076,035 - 1,076,035 975,089 - 975,089
Investment income 4 3,702 - 3,702 407 - 407
Total income 3,867,142 39,126 3,906,268 3,345,882 99,603 3,445,485
Expenditure on:
Raising funds 7 885,621 3,181 888,802 825,294 46,894 872,188
Charitable activities
Patient care 7 2,641,195 15,058 2,656,253 2,391,336 35,860 2,427,196
Total expenditure 3,526,816 18,239 3,545,055 3,216,630 82,754 3,299,384
Net gains/(losses) on investments 16 93 - 93 35 - 35
Net income/(expenditure) 340,419 20,887 361,306 129,287 16,849 146,136
Transfers between funds 22 / 23 17,782 (17,782) - 13,278 (13,278) -
Net movement in funds 358,201 3,105 361,306 142,565 3,571 146,136
Reconciliation of funds:
Fund balances at 1 April 2022 3,408,425 7,425 3,415,850 3,265,860 3,854 3,269,714
Fund balances at 31 March 2023 3,766,626 10,530 3,777,156 3,408,425 7,425 3,415,850
----- 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.

17

ST JOSEPH'S HOSPICE ASSOCIATION

SUMMARY CONSOLIDATED INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 MARCH 2023

----- Start of picture text -----
2023 2022
£ £
Total income 3,906,268 3,445,485
Total expenditure from income funds (3,545,055) (3,299,384)
361,213 146,101
Gains/(losses) on investments 93 35
Net income/(expenditure) for the year 361,306 146,136
----- End of picture text -----

The summary consolidated income and expenditure account is derived from the consolidated statement of financial activities on page 17 which, together with the notes on pages 21 to 38 provides full information on the movements during the year on all funds of the charitable company.

18

ST JOSEPH'S HOSPICE ASSOCIATION

CONSOLIDATED BALANCE SHEET

FOR THE YEAR ENDED 31 MARCH 2023

----- Start of picture text -----
Group Charitable Group Charitable
company company
2023 2022
Notes £ £
Fixed assets
Tangible assets 15 2,199,917 2,199,917 2,213,557 2,213,557
Investments 16 781 782 688 689
2,200,698 2,200,699 2,214,245 2,214,246
Current assets
Debtors 18 417,336 417,336 301,838 301,838
Cash at bank and in hand 1,387,295 1,387,295 1,118,364 1,118,364
1,804,631 1,804,631 1,420,202 1,420,202
Creditors: amounts falling due within
one year 19 (228,173) (228,174) (218,597) (218,598)
Net current assets 1,576,458 1,576,457 1,201,605 1,201,604
Total assets less current liabilities 3,777,156 3,777,156 3,415,850 3,415,850
Income funds
Restricted funds 22 10,530 10,530 7,425 7,425
Unrestricted funds
Unrestricted income funds 23 1,521,777 1,521,777 1,150,030 1,150,030
Designated funds 23 2,199,917 2,199,917 2,213,556 2,213,556
Revaluation reserve 23 44,932 44,932 44,839 44,839
3,766,626 3,766,626 3,408,425 3,408,425
3,777,156 3,777,156 3,415,850 3,415,850
----- End of picture text -----

The notes on pages 21 to 38 form part of these financial statements.

The financial statements were approved by the board of trustees on 7 December 2023 and are signed on its behalf by:

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

Company Registration No. 04267625

19

ST JOSEPH'S HOSPICE ASSOCIATION

STATEMENT OF CASHFLOWS AND CONSOLIDATED CASHFLOWS

FOR THE YEAR ENDED 31 MARCH 2023

----- Start of picture text -----
Group Charitable Group Charitable
company company
2023 2022
£ £
Cash flows from operating activities
Net movement in funds (as per SOFA) 361,306 361,306 146,136 146,136
Adjustments for :
Depreciation 85,507 85,507 82,285 82,285
(Gains)/losses in investments (93) (93) (35) (35)
Dividends from investments (28) (28) (6) (6)
Interest receivable (3,674) (3,674) (401) (401)
(Increase)/decrease in stock - - 749 -
(Increase)/decrease in debtors (115,498) (115,498) (162,952) (162,251)
Increase/(decrease) in creditors 9,576 9,576 (13,291) (13,237)
Net cash provided by (used in) operating activities 337,096 337,096 52,485 52,491
Cash flows from investing activities
Purchase of property, plant and equipment (71,867) (71,867) (126,337) (126,337)
Dividends from investments 28 28 6 6
Interest receivable 3,674 3,674 401 401
Net cash provided by (used in) investing activities (68,165) (68,165) (125,930) (125,930)
Change in cash and cash equivalents in the year 268,931 268,931 (73,445) (73,439)
Cash and cash equivalents as at 1 April 2022 1,118,364 1,118,364 1,191,809 1,191,803
Cash and cash equivalents as at 31 March 2023 1,387,295 1,387,295 1,118,364 1,118,364
----- End of picture text -----

20

ST JOSEPH'S HOSPICE ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2023

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.

21

DRAFT

ST JOSEPH'S HOSPICE ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2023

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:

22

ST JOSEPH'S HOSPICE ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2023

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.

23

ST JOSEPH'S HOSPICE ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2023

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.

24

ST JOSEPH'S HOSPICE ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2023

2 Donations, legacies and grants

Unrestricted
funds
£
Donations and legacies
Donations and gifts
243,804
Legacies received
752,532
Events
56,168
Other income
1,872
Grants
303,460
1,357,836		 Restricted
funds
£
-
-
-
-
39,126
39,126		 Total
2023
£
243,804
752,532
56,168
1,872
342,586
1,396,962		 Unrestricted
funds
£
235,600
212,879
65,189
3,435
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 fund grants in 2022 include income from the following: Coronorvirus Job Retention Scheme - 11,432

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		 2023
£
791,396
(219,837)
(178,294)
(76,599)
316,666
10
271,713
(79,500)
(49,084)
143,129
12,926
(2,946)
9,980
1,076,035
(603,314)
(2,946)
469,775		 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

25

ST JOSEPH'S HOSPICE ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2023

4 Investment income

Income from listed investments
Interest receivable
5
Charitable activities
Patient care fee income		 2023
£
28
3,674
3,702
2023
£
1,429,569		 2022
£
6
401
407
2022
£
1,364,902

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		 2023
£
3,893,342
9,980
3,903,322
3,532,317
9,792
3,542,109
361,213
93
361,306
3,415,850
3,777,156
10,530
3,766,626
3,777,156		 2022
£
3,433,695
6,653
3,440,348
3,285,309
8,938
3,294,247
146,101
35
146,136
3,269,714
3,415,850
8,306
3,407,544
3,415,850

26

ST JOSEPH'S HOSPICE ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2023

7 Total resources expended

Staff
costs
£
Notes
Costs of raising funds
8
Costs of generating
voluntary income
222,992
Cost of activities for
generating funds
216,655
Trading company
cost of sales
-
439,647
Charitable activities
Patient care
9
1,816,724
Support costs
10
119,120
Governance costs
-
Total
1,935,844
2,375,491		 Unrestricted
reserves
Depreciation
£
-
-
-
-
85,507
-
-
85,507
85,507		 Other
costs
£
59,551
383,477
2,946
445,974
525,458
84,595
9,791
619,844
1,065,818		 Staff
Other
costs
costs
£
£
-
-
3,181
-
-
-
3,181
-
-
15,058
-
-
-
-
-
15,058
3,181
15,058
Restricted
reserves		 Total
2023
£
282,543
603,313
2,946
888,802
2,442,747
203,715
9,791
2,656,253
3,545,055

Governance costs relates to the auditors' fees of £9,791 including irrecoverable VAT.

27

ST JOSEPH'S HOSPICE ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2023

----- Start of picture text -----
7 Total resources expended continued
Unrestricted Restricted
reserves reserves
Staff Depreciation Other Staff Other Total
costs costs costs costs 2022
Notes £ £ £ £ £
Costs of raising funds 8
Costs of generating
- - -
voluntary income 257,644 52,698 310,342
Cost of activities for
- -
generating funds 181,286 328,564 46,894 556,744
Trading company
cost of sales - - 5,102 - - 5,102
- -
438,930 386,364 46,894 872,188
Charitable activities
Patient care 9 1,625,537 82,285 472,144 9,183 21,677 2,210,826
Support costs 10 128,304 - 79,128 - 5,000 212,432
Governance costs - - 8,938 - - 8,938
Total 1,753,841 82,285 560,210 9,183 26,677 2,432,196
2,192,771 82,285 946,574 56,077 26,677 3,304,384
----- 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		 2023
£
51,232
895
7,424
59,551		 2022
£
44,532
876
7,290
52,698

28

ST JOSEPH'S HOSPICE ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2023

----- Start of picture text -----
8 Costs of raising funds (continued)
2023 2022
£ £
Other cost of activities for generating funds comprise:
Shop rent, rates and utilities 178,295 171,406
Other shop costs 59,958 54,745
Equipment hire - vans 16,640 16,160
Lottery prizes 79,500 78,000
Lottery commission and other costs 49,084 8,253
383,477 328,564
Trading company cost of sales
Purchase of goods for resale 2,946 5,102
9 Charitable activities
2023 2022
£ £
Other costs relating to UK hospice activities comprise:
Laundry and cleaning 40,374 49,637
Hospice expenses 224,836 217,123
Sundry expenses 4,299 4,119
Repairs and maintenance 81,984 48,992
Food 59,994 40,190
Rates and water rates 18,040 20,715
Light and heat 53,999 53,238
Travelling 248 39
Training 6,844 9,162
Insurance 33,498 27,615
Telephone 1,342 1,314
Restricted fund expenditure (see Note 22)
Defibrilator fund (equipment hire) 398 398
Recliner chair fund 10,735 2,400
TV/CCTV wildlife watch fund 3,925 -
Training fund - 880
Dementia care fund - 650
Bedside table fund - 1,500
Refurbishment fund - 4,301
-
Bee project fund 1,000
V R Equipment fund - 840
Fence Fund - 5,000
-
Suction pump fund 4,608
Patient support group - 100
540,516 493,821
----- End of picture text -----

29

ST JOSEPH'S HOSPICE ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2023

----- Start of picture text -----
10 Support costs
2023 2022
£ £
Support costs relating to UK hospice activities comprise:
Telephone 6,713 5,693
Postage and stationery 5,578 6,551
Legal and professional fees 43,833 30,554
Bank charges 6,848 6,370
Repairs and maintenance - 244
Subscriptions 1,220 4,139
Computer costs 20,403 18,618
Sundry expenses - 794
-
Equipment hire 1,165
Restricted funds
-
Feasibility fund 5,000
84,595 , 79,128
----- 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.

30

ST JOSEPH'S HOSPICE ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2023

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		 2023
Number
71
21
7
99
2023
£
1,816,724
442,828
119,120
2,378,672
2023
£
2,102,093
174,236
102,343
2,378,672
2023
Number
1
1		 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

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 £118,298 (2022 - £100,760).

The total employee benefits of the key management personnel of the group, excluding pension contributions, was £153,315 (2022 - £150,281).

31

ST JOSEPH'S HOSPICE ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2023

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|2023|2022| |£|£| |Net incoming/outgoing resources is stated after charging:| |Depreciation of fixed assets|85,507|82,285| |Auditors' remuneration|9,791|8,938| |Hire of equipment - cost of raising funds|16,640|16,160| |Hire of equipment - support costs|398|1,563|

----- 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 2022|2,802,888|899,047|3,701,935| |Additions|44,054|27,813|71,867| |-|-|-| |Disposals| |At 31 March 2023|2,846,942|926,860|3,773,802| |Depreciation and impairment| |At 1 April 2022|678,335|810,043|1,488,378| |Charge for the year|56,459|29,048|85,507| |-|-|-| |Disposals| |At 31 March 2023|734,794|839,091|1,573,885| |Carrying amount| |At 31 March 2023|2,112,148|87,769|2,199,917| |At 31 March 2022|2,124,553|89,004|2,213,557|

----- 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.

32

ST JOSEPH'S HOSPICE ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2023

16 Fixed asset investments

Listed
Unlisted
Total
£
£
£
Market value
At 1 April 2022
688
-
688
Change in value in year
93
-
93
Realised in year
-
-
-
At 31 March 2023
781
-
781
Unrestricted funds
781
-
781
The investment assets are held:
In the UK
-
-
-
Outside the UK
781
-
781
781
-
781
Historical cost:
At 31 March 2023
-
-
-
At 31 March 2022
-
-
-
Group		 Listed
Unlisted
Group
Total
£
£
£
£
688
-
1
689
93
-
-
93
-
-
-
-
781
-
1
782
781
-
1
782
-
-
1
1
781
-
-
781
781
-
1
782
-
-
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		 2023
£
12,926
(2,946)
9,980
(4,000)
(5,980)
-
1,484
(1,483)
1
1		 2022
£
11,790
(5,137)
6,653
(4,000)
(2,653)
-
61
(60)
1
1

33

ST JOSEPH'S HOSPICE ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2023

----- Start of picture text -----
18 Debtors Group Charity Group Charity
2023 2023 2022 2022
£ £ £ £
Trade debtors 139,865 139,865 128,319 128,319
Other debtors 22,642 22,642 9,364 9,364
Prepayments and accrued income 254,829 254,829 164,155 164,155
417,336 417,336 301,838 301,838
19 Creditors: Group Charity Group Charity
amounts falling due within one year 2023 2023 2022 2022
£ £ £ £
Trade creditors 76,734 76,734 74,441 74,441
Amounts owed to group undertakings - 1,484 - 61
Taxes and social security costs 44,127 42,644 37,754 37,694
Other creditors 53,252 53,252 48,381 48,381
Accruals 54,060 54,060 58,021 58,021
228,173 228,174 218,597 218,598
----- 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 £53,750 (2022 - £50,596). Total employer and employee contributions of £10,054 (2022 - £9,134) 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 £47,703 (2022 - £43,186). Total employer and employee contributions of £16,824 (2022 - £11,773) were due to this scheme at the year end and is included in creditors.

21 Share capital

The charitable company is limited by guarantee.

34

ST JOSEPH'S HOSPICE ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2023

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
Kickstart fund
Recliner chair fund
Kitchen garden fund
Wi-Fi improvement fund
Grounds refurbishment fund
TV/CCTV wildlife watch fund
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		 Balance at
1 April
2022
£
805
3,120
-
3,500
-
-
-
-
7,425
Balance at
1 April
2021
£
1,203
2,000
650
1
-
-
-
-
-
-
-
-
-
3,854		 Incoming
resources
Resources
expended
Transfers
£
£
£
(398)
3,181
(3,181)
7,235
(10,735)
1,028
2,782
(2,782)
15,000
(15,000)
9,900
(3,925)
39,126
(18,239)
(17,782)
Incoming
resources
Resources
expended
Transfers
£
£
£
-
(398)
-
2,000
(880)
-
-
(650)
-
56,076
(56,077)
-
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
(82,754)
(13,278)
Movement in funds
Movement in funds		 Balance at
31 March
2023
£
407
3,120
-
-
1,028
-
-
5,975
10,530
Balance at
31 March
2022
£
805
3,120
-
-
-
-
-
-
-
3,500
-
-
-
-
7,425

35

ST JOSEPH'S HOSPICE ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2023

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
2022
£
1,150,030
44,151
688
2,213,556
3,408,425
Balance at
1 April
2021
£
1,051,551
44,151
653
2,169,505
3,265,860		 Incoming
resources
£
3,813,056
-
-
54,086
3,867,142
Incoming
resources
£
3,232,823
-
-
113,059
3,345,882		 Resources
expended
Transfers
£
£
(3,441,309)
-
-
-
-
(85,507)
17,782
(3,526,816)
17,782
Resources
expended
Transfers
£
£
(3,134,344)
-
-
-
-
(82,286)
13,278
(3,216,630)
13,278
Movement in funds
Movement in funds		 Investments
gains/losses
£
-
-
93
-
93
Investments
gains/losses
£
-
-
35
-
35		 Balance at
31 March
2023
£
1,521,777
44,151
781
2,199,917
3,766,626
Balance at
31 March
2022
£
1,150,030
44,151
688
2,213,556
3,408,425

36

ST JOSEPH'S HOSPICE ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2023

----- Start of picture text -----
24 Analysis of net assets between funds
Unrestricted Restricted Total
funds funds
£ £ £
Fund balances at 31 March 2023 are represented by:
Tangible fixed assets 2,199,917 2,199,917
Investments 781 781
Current assets 1,794,101 10,530 1,804,631
Creditors amounts due within one year (228,173) (228,173)
3,766,626 10,530 3,777,156
Unrealised gains included above:
- - -
On tangible fixed assets
On investments 781 - 781
781 - 781
Reconciliation of movements in unrealised gains:
-
Unrealised gains at 1 April 2022 44,839 44,839
Net profit on revaluations in year 93 - 93
-
Unrealised gains at 31 March 2023 44,932 44,932
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
-
(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
----- End of picture text -----

37

ST JOSEPH'S HOSPICE ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

25 Commitments under operating leases

At 31 March 2023 the group had future minimum commitments under non-cancellable operating leases as follows:

Within one year
Between two and five years
After five years		 2023
2022
£
£
135,145
114,750
301,500
207,728
21,041
45,541
457,686
368,019
Land and buildings		 2023
2022
£
£
-
-
-
-
-
-
-
-
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.

38