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2021-03-31-accounts

Annual Report and Financial Statements

31 March 2021

Charity Registration No: 1113125 Company Limited by Guarantee Company Registration No: 05513914 (England and Wales)

Contents

Reports 1
Reference and administrative information 2
Chair’s statement 3
Message from the CEO 4
Trustees’ report (incorporating the strategic report) 5
Independent auditor’s report 24
Financial Statements
Statement of f nancial activities 28
Balance sheet 30
Statement of cash f ows 31
Principal accounting policies 32
Notes to the f nancial statements 38

Reports

Reference and administrative information

St Joseph’s Hospice, Hackney

Mr Paddy McGuinness CMG, OBE, MA (Chair)

Mr Edward B McGuigan

BA FFA FIPA

Prof Francis Campbell BA MA PhD (honoris causa) DUniv (Vice-Chair) (resigned 19 May 2020)

Prof Jim McManus,

BD (Hons) OCDS CPsychol CSci FBPsS FFPH FRSB Chartered FCIPD

Sister Rita Dawson MBE DL RSC MSc BSc (Hons) RGN RSCN

Dr Una Molloy

RGN, RM, BNS (Hons), MSc Nursing, PhD

Margaret Doherty BA (Hons), DEBA, MCIPR

Dr Michael Moran

PhD MMedSci MBBChBAO BSc (Hons) MRCS DO-HNS

Sister Jacqueline Doherty RSC

Mr Peter Pledger

Annual Report 2021

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Senior Management Team
Chief Executive Tony McLean SRN, RMN, RHV, Fellow of IOD
Director of Clinical Services Jane Naismith RN QN PGCE BSc (Hons) MSc
Medical Director and Consultant Dr Andrew Tysoe-Calnon BSc MBBS FRCP
in Palliative Medicine
Director of Finance & Facilities David French FCCA, MBA
Director of Communications & Enterprise Tracey Macbeth BA (Hons)
Director of Human Resources Janet Simkins BA (Hons) MCIPD, MCIH
Head of Mission Carolyne Barber RGN, BSc (Hons) Oncology, MA
Company Registration Number 05513914 (England and Wales)
Charity Registration Number 1113125
Registered Address Mare Street
Hackney
London E8 4SA
Telephone 020 8525 6000
Email info@stjh.org.uk
website www.stjh.org.uk
Auditor Buzzacott LLP
130 Wood Street
London EC2V 6DL
Investment Managers CCLA Investment Management Limited
80 Cheapside
London EC2V 6D2
Solicitors Stone King LLP
13 Queen Square
Bath BA1 2HJ
Winckworth Sherwood LLP
Minerva House
5 Montague Close
London SE1 9BB
Bankers Barclays Bank plc
1 Churchill Place
London E14 5HP
The Co-operative Bank plc
80 Cornhill
London EC3V 3NJ
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St Joseph’s Hospice, Hackney

2

Chair’s statement

The past year has been challenging for St Joseph’s Hospice and for the communities we serve. Some of us are mourning the loss of loved ones and even more have had our lives changed by the eff ects of the Covid-19 Pandemic. It is a source of great pride and comfort to me that through all this St Joseph’s has continued to care so well for the sick and dying and for their families.

Of course, it is not the fi rst pandemic we have faced in our 116-year history and sadly will not be the last. In meeting it we are inspired by the example of our forebears, the fi ve sisters who founded the Hospice in 1905, and their Mission and Values which endure in our own.

In spite of the pandemic, we end the year in good order, under the leadership of Chief Executive Tony McLean, the Senior Management Team (SMT), and with support from the staff, volunteers and Board of Trustees. We have remained true to the strategic direction laid out in our fi ve-year plan – Vision 2024 – but with some Covid-19 related adjustments. One particular example is fundraising which has experienced diffi culties right across the charitable sector, but St Joseph’s has more than compensated for unavoidable shortfalls with robust fi nancial management and new enterprise initiatives. We are also proud to have provided contingency ward space for the great NHS hospitals in our area.

As part of our Care Strategy we worked to provide care closer to home, which has often been challenging during periods of lockdown though ever more important. By harnessing technology, we have found new ways to stay connected with our patients without losing the essential human connection which is so much a part of our care. I am sure that some of these methods will stay with us for the future.

I take particular pride in how we have been able to support the dying and their families, especially given that demand for support sessions increased by 20% as people have experienced more traumatic bereavements during the pandemic.

On a positive note, the last twelve months have reminded me how much St Joseph’s is embedded in the local community, and I would like to pay tribute to the numerous local people and organisations who came forward in their droves with PPE, food and offers of help when we needed it most. We felt embraced by their love just as our founding sisters did when they arrived here with little to support their Mission. The Board of Trustees, Senior Management Team and staff would like to say ‘thank you and God bless you’.

For the Trustees, the delivery of excellence in patient care – under the umbrella of well-led and good governance – is central to what we do, and every day we see examples of this from the staff, volunteers and the senior management team who work tirelessly with the same aim of Service. I continue to be humbled and to give thanks for all that they do.

Paddy McGuinness, CMG OBE, MA, Chair of Trustees.

Paddy McGuinness CMG OBE Chair of Trustees

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Message from the CEO

As Chief Executive of St Joseph’s Hospice for the last two and a half years, my priority has continued to be the execution of Vision 2024 – the strategy that has underpinned everything we have planned and achieved in the last fi nancial year.

That plan of course could not have anticipated the dreadful pandemic that the world is still facing, but despite this, we have had a successful year, thanks to the hugely talented individuals who provide care and support to those we care for as well as the Senior Management Team who lead each strand of the plan, and of course our wonderful wider workforce.

If I had to choose three words that defi ne how we have operated in the last twelve months, they are committed, adaptable and dogged. I am incredibly proud of how we have faced and embraced each challenge head on. When we had to temporarily shut down services, our staff simply found other ways to support our patients. Technology has played a big part, providing us with new ways to operate many of our services. This meant that whilst our on-site footfall decreased, the sheer volume of contacts with our patients has increased exponentially, with no impact on the quality of the service.

Of course, we have also played our part in the fi ght against Covid-19, and just before the peak of the crisis, were asked by our CCGs to make more beds available. Our team worked incredibly hard to prepare our St Anne’s Ward and add beds to our two existing wards, so that we were ready to further contribute to London-wide Covid-19 efforts in a matter of weeks.

As part of our Enterprise strategy, we have continued to seek new ways to generate income and, as a result, have not experienced the fi nancial challenges that some other hospices have faced. We have continued to invest in the Hospice site by refurbishing unused parts of the site, which, in turn, has enabled us to rent more space to commercial organisations. We have also taken giant leaps forward in terms of our sustainability programme, including the purchase of electric vehicles and the installation of solar panels.

Like all charities, fundraising has not been easy, and retail has experienced some diffi culties due to long periods of shop closures. Nevertheless, we have still been able to achieve most of our fundraising targets, in no small part thanks to the generous support from our local community and corporate donors, all of this despite a downturn in legacies.

I have left 2021 with a sense of immense pride in what we have achieved this year, and cannot stress the importance of all our staff – of course those on the frontline, but also those who work behind the scenes – who have made it possible for us to continue to provide a safe service to our patients.

We look to the year ahead with confi dence, and I know that we will deliver our Mission and preserve our values thro ughout.

Tony McLean Chief Executiv e

4

Trustees Report

Introduction

The trustees present their statutory report together with the financial statements of St Joseph’s Hospice, Hackney, for the year ended 31 March 2021. The report, which constitutes a trustees’ report for the purposes of charity legislation and a directors’ report for the purposes of company legislation, has been prepared in accordance with Part VIII of the Charities Act 2011.

The financial statements have been prepared in accordance with the accounting policies set out on pages 37 to 43 of the attached financial statements, and comply with the charitable company’s Memorandum and Articles of Association, applicable laws and 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 United Kingdom and Republic of Ireland (FRS 102).

Overview

St Joseph’s Hospice is a proud, modern, caring and compassionate independent Catholic charity which supports the diverse communities of East London and its surrounding areas. We deliver specialist palliative care, end of life care and respite care for people with progressive and life-limiting illnesses, as well as providing comprehensive support for their families and carers. All of our services are provided free of charge.

Our priority is to provide excellent care for people with complex conditions which require a multidisciplinary clinical and nursing approach and to provide specialist support and expertise in end of life care to generalist services in hospitals and the community. In addition, we offer expert advice and support to other professionals on specialist palliative and end of life care, deliver specialised education and training, and undertake targeted research in aspects of this care. Underpinning all of our work, as part of our founding Mission, is a particular responsibility to support the poor – regardless of the form which their poverty takes – whether it be poverty of health, economic condition, social circumstance, or emotional and spiritual need.

We operate the Hospice in full sight of the highest clinical and ethical standards underpinned by our Catholic values. We are committed to our responsibility to promote a clear vision of the highest quality in specialist palliative and end of life care, being called to speak and act in our commitment to the human dignity of the entire person and the sacredness of every human life.

Historically, approximately half of our income comes from the NHS, which means we need to raise no less than £7 million a year just to meet our operating costs. This funding comes from the legacies, donations and other fundraising initiatives which we undertake. We owe a significant debt of gratitude to the generosity and goodwill of our local communities and we thank them for their continued commitment to us and the considerable support which they offer us, year after year.

St Joseph’s Hospice was founded by The Religious Sisters of Charity in 1905 in Hackney and has built an outstanding reputation in providing the highest quality care to our communities in East London and beyond. This part of East London has been characterised by a long history of material poverty and deprivation as well as religious, ethnic and cultural diversity.

We continue to explore new sources of funding to augment the income which we currently receive from the NHS and our charitable donors, and we endeavour to increase income from our various enterprises which are operated entirely in keeping with our founding Ethos and Mission.

As part of all of these enterprises, we remain committed to ensuring that we always protect those we care for and their families, as we continue to influence those who commission our services, demonstrating the excellence of our care in a setting of valued-added efficiency and effectiveness.

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Objectives and activities

Charitable objectives & principal activities

Our charity’s purposes, as set out in the objects contained in our Articles of Association, are the relief of sickness and disability, in particular by:

The aims of the charity are to provide physical, emotional, social and spiritual care to physically ill people of all races and creeds.

Mission statement

Our mission at St Joseph’s is:

Vision

Our vision is that everyone with a life-limiting illness is as fully supported as possible to ensure that they live well until the end of their natural life, and that support is provided where and when they need it.

Core values

We are committed to five core values. These are:

Respect for human dignity

We respect human dignity when we respect the sacredness of life, care for the whole person, demonstrate unity of purpose while recognising individual differences, value each person’s contribution and act in a culturally appropriate manner.

Service/quality

We provide service when we create an environment of welcome and hospitality, promote quality care and excellence, encourage and demonstrate team spirit, recognise the value of individual initiatives and ideas and show an openness to constructive criticism and feedback.

Care of the poor and vulnerable/advocacy

We care for the poor and vulnerable when we listen attentively to identify unmet needs, respond in a practical way to those in need, collaborate with others to share resources, create access to needed services and provide basic resources for daily living to those in need.

Compassion

We show compassion when we act with understanding and sensitivity, work cooperatively with others, are available to those we serve and to each other and respect and nurture the environment.

Justice

We promote justice when we act with integrity, respect the rights of others, take responsibility for our actions, preserve resources, provide quality without extravagance, demonstrate fairness in decision making, affirm, celebrate and develop the gifts and talents of each person and model justice in all aspects of business practice.

Strategic achievements and performance

The Senior Management Team, with the support of our Board of Trustees, continues to drive forward with implementation of the 5-year strategic plan. Now in Year 3, Vision 2024 sets out how we will develop and invest in the Hospice until 2024 with the flexibility to respond to the evolving external environment, including the changing needs of the population we serve.

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Patients

We aim to provide a warm, welcoming and comfortable environment for our patients, their families, and our visitors and staff. This includes our 5 star hygiene rated high quality catering provision for inpatients with food freshly cooked daily on site. Visitors as well as staff can purchase a range of affordable hot and cold food and drinks from our popular Five Sisters Café, and all have access to our stunning award-winning gardens. Our Reception and Community Hub area is welcoming, and incorporates our Heritage Room where visitors can learn more about, and develop a deeper understanding of our rich heritage, and the role which it rightly takes within today’s modern society.

We continue to deliver high quality services to our patients, as well as building our reputation as a centre of excellence for specialist palliative care, working closely with primary care and local hospitals. Our services include in-patient, outpatient, day care, respite care, advice and support in the individual’s home or care home, and bereavement support. Much of this is available 24/7. We take immense pride in the excellent feedback which we regularly receive on the care and quality of our services which we provide.

The Hospice serves an ethnically and culturally diverse set of communities, and over many years we have developed a fully inclusive approach in supporting members of those communities, especially those who may not traditionally have considered using our range of hospice services. We work extremely hard to meet the varying needs and expectations of all our patients, their families and carers, whatever their cultural, spiritual, ethnic background, gender or sexual orientation. We

offer culturally sensitive diets, a comprehensive range of advocacy services, as well as a multifaith Mission and Chaplaincy service. Our ability to communicate effectively with those we serve is essential, and on any given day, there can be as many as 33 different languages spoken by our staff, patients, visitors and callers as well as our numerous volunteers.

Within the communities which we serve, approximately half (49%) of the patients referred identify themselves as BAMER, and their predominant stated religions are Christian, Catholic and Muslim.

Just over a third (36%) of patients are on or below the poverty line, and 35% of the patients referred to us had a non-cancer diagnosis, compared with 44% in the previous year.

We continually strive to improve equitable access to specialist palliative and end of life care, providing education, training and support to partners, and to healthcare professionals requiring advice on managing complex symptoms.

We have continued to deliver high quality service to our patients, despite the obvious impacts of the Covid-19 Pandemic. We maintain and enhance our reputation as a centre of excellence for specialist palliative care through our continued close working with our colleagues within primary care and our local hospitals. Our core services include:

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Further services provided through our internal referral process are:

The overwhelming majority of our services are available 24/7.

We take particular pride in the excellent feedback on the care and quality of our services. As we previously reported, our CCG conducted their annual review in autumn 2019. This focused on the quality of our clinical services, our safeguarding procedures and our organisational leadership. They rated our services as being good. We have continued very close contact with our Commissioners throughout 2020/21 to ensure that we provided targeted support to patients and communities particularly in light of the well-rehearsed pressures within acute settings throughout the Covid-19 pandemic.

Demand on the Hospice continues to increase. During the last 12 months, we have recorded 5,748 patients contacts including 3,470 external referrals, an 8% increase on the previous year along with 386 in the inpatient unit referrals. 212 appointments were made through our day services which represents a slight reduction compared with the previous year due to the temporary closure of services due to the Covid-19 pandemic. We did however see a corresponding increase in community contacts with an increase of 4% to 18,500 contacts by our Community Palliative Care Team (CPCT) as they adjusted and adapted their support routes in order to maintain contact with

patients in agile and different ways due to the restrictions imposed by the pandemic, such as by telephone or video meetings.

Of particular note is the 20% increase in support sessions provided to patients and bereaved people as a result of referrals, from 6,234 in the previous year to 7,458 in the last twelve months. This is mainly due to higher demand as bereaved people have experienced bereavements that have been significantly more traumatic during the pandemic.

Of the patients admitted to the Hospice, 35% were discharged to their usual place of residence such as their own home, care home or to the care of a relative, and 81% of patients died within their preferred place of death. This compares with 77% in the previous year, and 74% two years ago, indicating an encouraging trend of patients dying in the place of their choice.

This year our bed occupancy decreased to 57% compared to 67% in the previous year. This is due to a slight reduction in the average length of stay (from 15.3 days to 14.4), a reflection of the re-orientation towards more care being delivered within the community, the temporary closure of respite beds due to Covid-19, and the desire of some patients to remain within their homes as anxiety over Covid-19 grew during the peaks of the pandemic.

Our planned refurbishment of St Michael’s Ward did not take place due to the uncertainties related to Covid-19, as well as the requirement to minimise footfall into the Hospice in order to fully comply with government safety guidelines. The work will be re-planned once restrictions have eased.

Service user feedback is essential in our quality improvement journey as it is vital to be able to monitor what we do well and what we might need to do differently or better. We also refer to our User Group – an independent group drawn from our service users or carers of service users – as a sounding board for both patient and organisational ideas. The CEO, SMT and senior members of our workforce regularly participate in their weekly User Group meetings to share and discuss new initiatives and to obtain feedback on our service provision. Their contribution to our quality improvement strategy is invaluable. Feedback from patients and their families from the independent ‘I

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Want Great Care’ survey continues to provide us with a benchmark target, and with a consistent maximum average rating of 5 out of 5 we continue to be both proud and humbled by the feedback we receive.

Below is a selection of I Want Great Care comments about our services from patients and their families this year:

Counselling

29th January 2021

B was fantastic. She travelled to my home for our counselling sessions. It has been a tough couple of years but her help has enabled me to cope with my mum’s passing and deal with anticipatory grief. B, thank you for helping me to make the most of my time left with my and for helping me to cope.

Children’s Counselling

5th June 2020

What was good? She has enjoyed her sessions with C and likes her very much. She felt supported and trusted by C to give her the time and space she needed. C and the team also provided her with art materials that she (and I) very much appreciated. We are both very grateful to C, J and the St. Joseph’s team. I cannot think of anything that could be improved.

Social Work

27th September 2020

The support from K in helping me with my finances has been amazing.

Lourdes Ward

27th February 2021

All my needs were met. The staff showed compassion and sympathy when I became teary and emotional.

St Michael’s Ward

27th September 2020

The care was extremely excellent, and I could not have wanted a “better bunch” from a dozen other units. All the nurses had a special way about them, all helpful, charming, and waking up to a smiling face makes all the difference. Their passion and compassion are phenomenal.

Day Hospice

28th October 2020

Staff are very welcoming, warm and very accommodating. The staff really look after you and work with you while you are sick and help in every way. Very friendly and nice team, including transport staff very helpful and makes your stay very pleasant and happy. Thank you very much for all the support and help given to me.

Namaste

18th January 2021

Best support we have had – unrivalled; very supportive; great empathy with mum and family members. Very accessible, professional, warm. Great understanding, expert advice re dementia. In-depth care, great listener, great commitment. Real comfort and reassurance in time of great need and uncertainty. C is mum’s new best friend. When she walks in, I can see there is a connection. Just being there watching her with mum, it’s a learning curve. I can pass it on to other family members.

Community Nursing

12th September 2020

On the whole, the care received from St. Josephs, from reception staff to practitioner level, is entirely holistic, friendly and proactive. As a point of note regarding the Covid-19 situation, the phone consultations with service-users, as replacement for face-to-face, was very effective, patients reassured by this course of action, contact with professionals very much maintained.

Physiotherapy/Occupational Therapy 27th September 2020

I do not think anything can be improved. All staff are wonderful, could not wish for better, looking forward to seeing them all again in November on my next visit. Smiley face.

Complementary Therapy 29th July 2020

Thank you for your kindness and care.

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Partnership working and collaboration

We fully recognise that we cannot meet the needs of all of our patients without other like-minded partner organisations.

In the last 12 months, we have continued to work closely with local NHS providers, Clinical Commissioning Groups (CCGs), STP, Marie Curie, Age UK East London, Macmillan Cancer Support and with many other voluntary sector care providers to deliver integrated services.

Human resources

Our HR department continues to drive forward its organisational development programme that exists to further improve our organisational and cultural strength. Projects that have been undertaken in the last twelve months have include the successful migration of our HR and Payroll MIS to a new system that underpins all our people, pay, training, education and development work. This provides staff and managers with better access to information that they have not previously had, enabling them to develop further in their roles.

Looking after the welfare of our staff is of paramount importance. St Joseph’s Hospice is at the forefront of delivering care, training and support tailored to individual needs and we will continue to develop and share best practice.

The pandemic has had a major impact on the life of Hospice staff. In order to promote staff safety, three Covid-19 workstreams were set up to look at physical safety, psychological safety, and supporting those returning to work after a period of either self-isolation or remote working. We also undertook a staff survey to capture the various experiences of staff during the pandemic. In terms of practical steps, the workplace was made safe including establishing maximum room occupancy risk assessments, office partitioning, LFD and PCR

testing. We have also recognised the impact of the pandemic in giving staff a space and place to record their experiences of loss and bereavement.

Training, Education and Development Education across the Hospice has continued to be developed, and we achieved ILM accreditation for our Managers Development Programme; unfortunately, its launch has been delayed by the pandemic. The Hospice maintains its high standard of compliance with statutory and mandatory training at 94%.

Staff engagement and voice

Our “one staff concept” recognises the value of employees and volunteers and the unique contribution of both groups to the life and work of the Hospice, recognising that motivated and engaged individuals are critical to the continued high standard of care experienced by our patients. Key to embedding this concept in the Hospice was ensuring that the staff team has uniform access to information and services throughout the Hospice.

Within the constraints of the pandemic, our induction programme has been extended to volunteers so that our paid and unpaid staff team are afforded the same opportunities to learn about the organisation. We are improving skills and development opportunities for our volunteers to attract more people, and are working collaboratively in community outreach with other projects at the Hospice, promoting our Compassionate Communities model.

Positive, proactive and consistent workforce engagement continues to be a high priority, and we are proud to celebrate long service from staff and volunteers, some who have worked at St Joseph’s for more than 40 years.

Our staff engagement is delivered through weekly SMT briefings, regular CEO updates, CEO Clinics and Bulletins, SMT surgeries, and news distributed

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through our intranet and email systems to the whole workforce. This strategy has been further extended to our commercial tenants in order to more fully engage them in Hospice activities and news.

Throughout the year, we have been implementing the fi ndings from the previous year’s staff survey with a view to enhancing the employee experience. The success of the resulting action plan will enable the staff experience to be measured in future pieces of research.

We are in the third year of our very popular “staff love” programme where we celebrate specifi c special events in the calendar with our workforce such as St Valentine’s Day, Easter and Christmas, as well as the presentation of long service awards on and around St Joseph’s Day.

We have continued to provide opportunities for refl ective practice via the well-attended Schwartz Rounds when social distancing guidelines allowed, and our Values and Behaviours Framework – led by the Mission team and co-created with the workforce – lay out St Joseph’s guiding principles.

Within the constraints of the pandemic, our induction programme has been extended to volunteers so that our paid and unpaid staff team are afforded the same opportunities to learn about the organisation.

Equality, Diversion and Inclusion

2020/21 saw the introduction of a reconstituted Equality, Diversity and Inclusion Committee which was led by the trustees. Work quickly commenced on establishing a fresh and innovative strategy and work plan to ensure that the Hospice remains a sector leader in Equality, Diversity and Inclusion within the workplace.

We continue to support our membership of the London Hospices LGBTQ Network, and we regularly contribute where appropriate as we seek to reinforce our position as an inclusive Hospice. Other highlights include launching a policy on domestic abuse, training a number of mental health fi rst aiders, and the development of a wellbeing strategy.

Our drive to ensure that we are a dementia-friendly hospice continues, with all staff undergoing mandatory training to understand the needs of dementia patients. Our ‘my name is’ dementiafriendly name badges have been positively received by staff, patient-facing volunteer and patients.

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A guide to the way we
behave in the workplace
Values and Behaviours
Framework
Core
Values
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Freedom to Speak Up

In the last twelve months, two Freedom to Speak Up Guardians were appointed and trained, and both have oversight on clinical and nonclinical concerns. They in turn trained seventeen champions from all areas of the staff team. The Guardians have been instrumental in establishing a national Hospice Freedom to Speak Up Guardian Network.

Enterprise

Our Enterprise strategy, developed as a pillar within Vision 2024, to establish more predictable, sustainable and fresh income streams for the Hospice – continues in meeting its ambitions. We are constantly try to plug the financial gap between our running costs and the income which we derive from our NHS block contract and fundraising opportunities.

With carefully planning of our space resource, we have been managed to repurpose unused parts of our site by refurbishing and converting them, then renting or leasing to organisations which are aligned with our overall Ethos and Values.

A privately owned Nursery has doubled its footprint at the Hospice and now has two sites, the second of which is in Mare Street Wing – a previously unused building on the Hospice site that has been renovated as part of a wider estate review.

Demand for office space within the Hospice site is high and we are almost at full occupancy; the thirteen offices in St Patrick’s Wing that we currently rent to local businesses remain fully occupied. We have let the first floor of Mare Street Wing to one organisation, and only one room remains on the second floor at the time of writing.

Toward the end of the 2020 financial year, we welcomed a Lymphoedema Service that relocated from elsewhere in the borough to St Joseph’s on a five-year lease basis; we are already working collaboratively with this organisation in a number of areas. We also generate rental and hospitality income from our stunning education and conference facilities, as well as our Garden Room and Finding Space room, to communitybased organisations, social enterprises and commercial businesses for meetings, events and workshops.

We worked collaboratively with any of our tenants who experienced financial difficulty due to the pandemic and despite modest rent refinancing initiatives, we still comfortably exceeded the targets we had set, and all licence and lease holders have renewed their contracts with us.

Our first pop up shop in Well Street provided the opportunity to test the potential for a retail presence within the area, and this subsequently led to the launch of our first permanent high street shop – the Five Sisters Shop – in Mare Street. Both shops have inevitably faced long periods of closure as a result of the pandemic, but both show promise in generating additional income for us due to their advantageous positions, and the high quality of the used goods which they sell. We continue to be extremely grateful to the local community for their support and generous donations.

We plan to further extend our retail portfolio, aiming to open at least two additional shops a year. Additionally, we are driving a migration towards online sales through the online shop on our new website.

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St Joseph’s Hospice, Hackney 12
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Estates

Our focus continues to be to further strengthen site and Hospice resilience, underpinned by the comprehensive site audit that was conducted last year and which included a review of safety policies.

We have also continued to support the Enterprise strategy by redeveloping parts of the Hospice site for commercial purposes, most recently as outlined above the refurbishment of Mare Street Wing.

Energy, environment and sustainability

Our year-on-year comparison is valid as the Hospice continued to operate throughout the pandemic and represents real reductions in both gas and electricity.

The goal is to work towards a nationally recognised award in environmental sustainability, and have already taken a number of steps towards operating in a more sustainable way.

Our strategy is underpinned by a Sustainability Management plan, incorporating a site energy survey.

In last year’s Annual Report, we highlighted that we planned to identify and address waste issues, and have since started to replace some of our aged boilers and laundry machines with significantly more energy efficient equipment.

We have recently completed the installation of 514 solar panels covering the east/west and south facing roofs of the Centenary Wing, Heenan House, Mare Street, St Patrick’s Wing and the Chapel building. These panels will improve and add to our green credentials within the community, as well as reducing our carbon emissions. It will also generate year on year savings in utilities and energy costs.

A fundraising campaign fuelled the purchase of two electric cars for our Community Palliative Care Team, and we secured OLEV funding for the installation of two electric car-charging points, located in the Hospice car park.

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Proportion of Proportion of
UK emissions Kwh UK emissions Kwh % Change
2020/21 2019/20
Direct Emissions
Combustion of Gas 100% 2.37M 100% 2.47M -4%
Indirect Emissions
Purchase of Electricity 100% 0.97M 100% 1.12M -13%
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Annual Report 2021

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Funding and fundraising

Funding

We have exceeded year two of our threeyear financial strategy targets due to effective expenditure management and a large legacy. Funds have been further boosted by additional new income generated through the Enterprise strategy, which exceeded plan.

We have continued to work closely with our Commissioners in order to maximise income for the Hospice, and have a wide-ranging engagement strategy to help plug the funding shortfall through funders, Enterprise and a robust fundraising programme.

From an operational perspective, the tighter financial management processes that we introduced last year – including more robust and earlier budgetary planning and monthly meetings with budget holders – ensure that we stay on track.

Fundraising

The Covid-19 pandemic had a major impact on our ability to fundraise with most of our events being postponed or cancelled, and our own retail shops were closed for much of the year. Some of our fundraising team were furloughed, and we held over vacancies at the height of the pandemic to save expenditure on staff costs. On a very positive note, we were entirely overwhelmed by the generosity of our local community who gave so generously to our appeals. They also fundraised at home, and we were also able to increase our online sales through eBay as the entire country migrated toward home shopping

We worked very hard to keep our supporters engaged and up to date with how the pandemic was affecting the Hospice and had some positive responses from funders, corporates and high net worth individuals, securing three donations of more than £100,000 in the year.

Legacy income is always difficult to predict and presented a particular challenge this year, largely due to the delays in probate due to the pandemic. Our legacy income declined by over 50% for the year.

While it has been a challenging and sometimes frustrating year for Fundraising, we were able to use some of our time to re-develop and automate our platforms, and we still achieved some positive results:

Urgent Appeal

In April, our Urgent Appeal to supporters raised more than £100,000 in donations.

Great East End Walk

We asked supporters to “Do it Your Way” and over 100 people signed up to walk the Great East End Walk to fundraise for the Hospice, generating over £20,000.

JumpStart Campaign

An appeal to replace the ageing Community Palliative Care Team’s vehicles raised almost £27,000 towards the purchase of two electric vehicles.

Light up a Life

A virtual event for the very first time, the livestreamed event took place with a handful of people on site, with staff, volunteers, supporters and friends of the Hospice invited to join us online. The event generated income of over £50,000.

As to the impact of the pandemic, St Joseph’s has weathered the storm better than we anticipated by successfully adapting our ways of working in response to evolving government guidelines and our agile responses to immediately problems. Where we have needed to change or in some cases halt some face-to-face clinical services, we have – where possible – continued to provide them, albeit in a different way. Our ICT Team has helped to facilitate much of this change, providing our teams with the tools to maintain contact with patients either by telephone or virtually. Our social media channels and new website were constantly updated to reflect any changes to our services. We are continuing to assess what the short – and long-term effects could be, but have not experienced a significant operational or financial impact, and continue to actively manage and mitigate risk through our robust risk strategy. Despite the current challenges, we believe that we are well placed following a successful 2020/21 financial year, and are moving forward with real confidence into 2021/22.

St Joseph’s Hospice, Hackney

14

Operating Surplus / (defi cit) £m

----- Start of picture text -----
2016/17 2017/18 2018/19 2019/20 2020/21
1.7
0.3
-0.4
-1.9
-2.7
----- End of picture text -----

Financial Review

Our key fi nancial target is to achieve at least a recurrently balanced operating position, so after an unprecedented year, we are delighted to report a £399k surplus (£1.7M – 19/20). After accounting for unrealised gains on our investments (£1.5M) the balance sheet improved by £1.9M. Annual operating performance is shown in the graph above.

Covid-19 dominated the fi nancial year and was a big infl uence on our fi nances. At the outset of the pandemic the Hospice offered support to local CCG’s through, for example, the provision of St Anne’s Ward. The decision to continue operating as normally as possible came with considerable fi nancial risk as nobody knew how the pandemic would pan out, but with the support of the CCG’s, donors and staff, we were able to end the year with this healthy fi nancial position.

Income of £14.5M (£15.1M – 19/20) exceeded budget by 2% but within this, there were some notable variances. We received an additional £1M of funding from CCG’s for provision of the extra beds on St Anne’s to assist in relieving the inherent pressure within the acute sector during the peaks of pandemic. We also received £725k of emergency Covid-19 funding from NHSE, via Hospice UK. This was targeted funding by the NHS to support Hospices during the pandemic.

The Hospice claimed £80k of funding from HMRC for business relief and through our very limited use of the furlough scheme.

Rental income also increased signifi cantly despite the pandemic. We worked closely with our tenants and offered discretionary rent reductions and rental holidays to support them. Despite this, our rental income increased by 47% to £461k, with the addition of new tenants in new refurbished spaces and refl ecting that this is a strategic growth area.

Like all charities, retail income suffered due to lockdown but unlike other hospices, our reliance on this source of income is limited so the impact was relatively low and a 50% reduction represents £50k in real terms.

Staffi ng costs remain the highest area of our annual expenditure, being 75% of total costs. Overall, our staffi ng costs rose by 4.5% to £10.5M (19/20 – £10.1M). £130k of the increase is accounted for through the decision to bring our Catering Services back in-house. One of the consequences of the pandemic was that staff were allowed to carry forward more leave and the extra cost of this has been factored into our results. The annual pay rise to keep pace with our local competitors for our staff has increased our staffi ng costs by £150k.

19/20 saw a reduction in our sub-contracts to £399k (19/20 – £734k) due to the cancellation

Annual Report 2021

15

of our outsourced Catering contract. The levels of our other sub-contracts remained similar to previous years. Other expenditure also remained broadly similar as we continued to operate as close to normal as possible, with additional costs being incurred in relation to Covid-19 specific purchases, such as PPE, internal changes to facilitate social distancing and signage to indicate safe distances and safe areas.

Fixed Assets

During the year our capital expenditure was £322k (19/20 – £167k), including investment in IT and refurbishment of Estate. Our fixed asset fund, which reflects the net book value of all our fixed assets ended the year with a value of £16.65M (19/20 – £17.4M).

Investments

At the start of the year, we retained extra cash resources until the impact of the pandemic on our cash flows became clearer. During the year we were able to invest an extra £3.8M in CCLA investments whilst retaining sufficient cash balances to cover our normal operations. At the year-end, the value of our CCLA investments had grown by £5.3M to £11.9M due to the combination of the extra investment and a £1.5M increased in unrealised gains.

Our investments have also earned the Hospice £769k through dividend and rental income.

Working Capital

Working capital reflects our ability to pay current liabilities with current assets – indicating the liquidity of the Hospice.

Overall working capital reduced by 35% to £4.8M during the year, halving the current ratio from six to three (current assets are three times current liabilities). Early in the pandemic, we were conscious that a lot of charities were encountering income problems and we had little visibility on the immediate future, so we decided to hold a relatively high level of cash. Later in the year we invested £3.8M of cash in our investment portfolio and by year-end our cash balance had decreased by £2.2M to £4.5M.

Legacies account for 53% of our debtors with the remaining balance related in the main to monies due from CCG funders These funds are paid monthly in arrears and continue to be received regularly. Our creditors increased by £1M which is

in part due to £0.5M of fundraising income being received in advance for future projects.

We are confident that the current ratio of three continues to ensure adequate liquidity now we are better placed to understand the impact of the pandemic.

Funds

Total funds increased by £1.9M to £39.3M. Of this total, nearly £22.5M is tied up in our estate as either fixed assets or investment property with a further £2.2M being restricted. The balance, whilst healthy, reflects the sustainability of the Hospice, especially in these uncertain times. We anticipate facing dual financial challenges – the impact of the pandemic will potentially be more profound over the next three years and the likelihood that the NHS will face greater financial funding constraints, and this may impact our statutory funding. The Trustees believe that our reserves level allows us to face these challenges optimistically and we are able to demonstrate our viability as a going concern.

Reserves policy and financial position As of 31 March 2021, the general funds of £14.5m exclude tangible fixed assets, investment properties and restricted reserves and, therefore, are the free reserves available to the charity for use towards its charitable purposes.

Our trustees review the reserves policy each year and set financial plans accordingly. The general unrestricted funds at 31 March 2021 represent about twelve months’ expenditure. The prevailing policy is ten months. The trustees will continue to review the level of reserves appropriate to the charity.

Investment policy

The Hospice had listed investments with a market value of £11.9m at 31 March 2021, together with investment properties with a market value at that date of £5.9m.

There are no restrictions on the Hospice’s power to invest. The investment strategy is set by the Trustees and takes into account income requirements, the risk profile and, in the case of listed investments, the investment manager’s views of the market prospects in the medium term. The overall investment policy for listed investments is to maximise total return through a diversified portfolio, aiming to provide the level of income agreed by the trustees and, at the same time, with

St Joseph’s Hospice, Hackney

16

An appeal to replace the ageing Community Palliative Care Team’s vehicles raised almost £27,000 towards the purchase of two electric vehicles.

Annual Report 2021

17

a view to ensuring that capital appreciation of the fund exceeds inflation over any five-year period.

The Finance and General Purposes Committee regularly reviews the performance of the investments against agreed benchmarks and the Trustees are satisfied that their investment policy is being achieved. However, due to stock market volatility, including the impact of Covid-19, it is difficult to rely upon capital growth of investments with any certainty, in the short to medium term. This reinforces the appropriateness of the reserves policy selected by the trustees.

Key management personnel

The trustees consider that they, together with the Senior Management Team, comprise the key management personnel in charge of directing, controlling, running and operating the charity on a day-to-day basis.

Salaries for the Senior Management Team are set having regard to national pay agreements, considering the seniority and experience required by each post.

All Trustees give their time freely and no trustees were remunerated during the year (2020-2021: no remuneration). Details of Trustee expenses are disclosed in note 8.

Risk management

We have assessed the major risks to which the charity is exposed, in particular those relating to the specific operational areas of the charity, its investments and its finances. The Covid-19 pandemic will bring some uncertainties to our financial position moving forward, and we have had to make changes to our operations and clinical services across the organisation. The key risks identified include the following:

Clinical risks to patients under our care, either as inpatients or in their usual place of residence. These risks are mitigated by the use of appropriately qualified and trained clinical and care services staff; having appropriate equipment which reduces risk, such as automated equipment to prevent human error; having robust policies and procedures in place; and our incident reporting system which includes reporting near misses so that future incidents can be prevented.

COVID-19

From a Covid-19 perspective, risk mitigation has centred on limiting the introduction of the virus to the Hospice, including the management of patients admitted with potential infection, the infection or potential infection of staff, and staff shortages due to isolation procedures. Robust controls have been introduced to significantly reduce footfall, as well as changes to patient visiting in line with government guidelines. At the same time, this has meant not permitting any commercial visitors or volunteers. The use of technology such as video calls has been helpful.

Our community team continued to operate normally by seeing patients in their own homes, however to minimise the risk of infection we used video contact where appropriate during periods of lockdown.

Securing adequate PPE has been challenging across the healthcare sector, but St Joseph’s has been able to procure sufficient supplies through a number of means such as active campaigning through the media, the support of the local community, through some NHS commercial channels and via Hospice UK.

Our control of the environment and our clinical practice and cleanliness of the Hospice has meant that in the financial year and since we have had no cases of Covid-19 transfer between patients in our care and none between staff patients and staff or staff to staff

Financial stability and sustainability

This risk is mitigated by a robust three-year financial plan which includes developing ongoing relationships with our NHS Commissioners so that our services are responsive to their changing needs; diversifying funding streams so that we are less reliant on NHS income, for example by seeking funding from trusts, foundations and local authorities where relevant; and strengthening our fundraising team to increase general fundraising income and continue legacies marketing.

The Enterprise strategic pillar has been successful in generating a sustained revenue stream through improved space utilisation and modest levels of investment. Despite the challenges faced by some of our small business renters requiring short-term rent reductions, this has not had a significant impact on our Enterprise income.

St Joseph’s Hospice, Hackney

18

Our community team continued to operate normally by seeing patients in their own homes, however to minimise the risk of infection we used video contact where appropriate during periods of lockdown.

Our restaurant has remained closed in line with Covid-19 restrictions imposed by the Government strategy, but we have continued to develop the Five Sisters Café food and drink offering to ensure no loss of amenity to staff as a consequence of the pandemic. Staff surveys indicate that the new Café and improved amenities provide a popular service for staff, and visitors and it is generating a reasonable income with a healthy margin.

Hospice operations

Many of our operational staff have continued to work remotely, in line with government guidelines to stay at home. Homeworking has been facilitated by the ICT department, who have more than doubled our remote working capacity. In order to minimise exposure to the virus on public transport and to ensure that key workers were still able to safely travel to work, an agreement was negotiated with Hackney Council whereby staff have been able to drive and park in residential zones in the local area. More than 80 staff have taken advantage of this agreement to-date, and this has helped to limit staff absence levels.

Major incident at the Hospice site – Risk Management

This risk is mitigated by our fire and other incident policies and procedures. We are strengthening our plans into a full disaster recovery plan.

We believe that by examining the operational and business risks faced by the charity in delivering care services, and by monitoring reserve levels and ensuring controls exist over key financial systems, we have established effective systems to mitigate those risks. We keep a detailed risk register, which is reviewed not less than quarterly by the SMT and fully reviewed at least annually by the Finance and General Purposes Committee, with the help of the Clinical Governance Committee.

Public benefit

We have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing our aims and objectives and in planning our future services. In particular, the Trustees consider carefully how planned activities will contribute to the aims and objectives they have set, and deliver public benefit.

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19

Fundraising

The Hospice aims to achieve best practice in the way in which it communicates with donors and other supporters. It takes care with both the tone of its communications and the accuracy of its data to share a factual, accurate and inspirational picture of the Hospice and its activities, inviting constituents to donate with confidence and clarity as to how their donations will be used. The Hospice is registered with the Fundraising Regulator and adheres to the Code of Fundraising Practice. St Joseph’s Hospice never pressurises its supporters, nor implies preferential treatment to those who donate.

As noted above, it applies best practice to protect supporters’ data and never sells, or swaps data, and ensures that supporters’ and donors’ communication preferences can be changed at any time. The Hospice manages its own fundraising activities, and does not employ the services of Professional Fundraisers. The Hospice undertakes to react to and investigate any complaints regarding its fundraising activities and to learn from them to improve its service. During the year ended 31 March 2021, the Hospice received no complaints about its fundraising activities (2020 – none).

Employees

The Hospice strives to be an equal opportunities employer and applies objective criteria to assess merit. It aims to ensure that no job applicant or employee receives less favourable treatment on the grounds of age, race, colour, nationality, religion, ethnic or national origin, gender, marital status, sexual orientation or disability.

The Hospice aims to attract and retain high quality staff. When determining salary rates the Hospice always has regard to national pay agreements and considers the seniority and experience demanded by each post.

Voluntary support

The Trustees give sincere thanks for the significant contribution that volunteers make to St Joseph’s Hospice. During the year, more than 600 volunteers gave their time with enthusiasm and generosity and we are indebted to them for all they do. Our volunteers completed more than 52,000 hours of volunteering across the year, which is a phenomenal contribution and is increasing significantly each year. We have been building upon our Investing in Volunteers accreditation, ensuring our training and induction programmes are robust and give our volunteers the best experience with us, as well as ensuring that our volunteers are supported well in their roles.

Two thirds of volunteers have some kind of direct patient contact in their voluntary role. We have embedded our award winning Compassionate Neighbours programme into our ward-befriending role to ensure that our patients are receiving the highest quality support. This has enabled our neighbours to feel more supported when volunteering on the wards and for us to support more people. The opening of our new retail sites has significantly increased our need to recruit more volunteers, and will be developing new partnerships in the coming year to support us to that end.

St Joseph’s Hospice, Hackney

20

The Trustees give sincere thanks for the significant contribution that volunteers make to St Joseph’s Hospice.

21 Annual Report 2021

Governance, structure and management

Constitution

St Joseph’s Hospice, Hackney, a charity registered under the Charities Act 2011, is constituted as a company limited by guarantee and is governed by its Memorandum and Articles of Association.

Liability of the members

The charity is constituted as a company limited by guarantee. In the event of the charity being wound up during the period of membership, or within the year following, company members are required to contribute an amount not exceeding £1.

Structure

The charity has staff based at three locations: the majority at St Joseph’s Hospice in Mare Street, Hackney; and two community outreach locations in Newham: at East Ham Care Centre and Richard House Children’s Hospice. Services are also delivered in patients’ own homes. The charity is governed by its trustees (the Board) which meets regularly throughout the year to determine strategic vision and direction. The trustees appoint a Chief Executive who is responsible for the dayto-day running of St Joseph’s Hospice and to inform and implement Board decisions.

The Registered Manager is the Director of Care and the CEO is the Responsible Individual for Care Quality Commission registration purposes.

Trustees

The Trustees listed on page 1 were in office at the date on which this annual report was approved. The Trustees who served on the Board throughout the year to 31 March 2021 and up to the date on which this report was approved are shown below.

----- Start of picture text -----
Directors Appointed/resigned
Mr Paddy McGuinness
CMG, OBE, MA (Chair)
Prof Francis Campbell Resigned 19 May 2020
BA MA PhD (honoris causa)
DUniv (Vice-Chair)
Sister Rita Dawson
MBE DL RSC MSc BSc
(Hons) RGN RSCN
Margaret Doherty
BA (Hons), DEBA, MCIPR
Sister Jacqueline Doherty
RSC
Mr Edward B McGuigan
BA FFA FIPA
Prof Jim McManus,
BD (Hons) OCDS CPsychol
CSci FBPsS FFPH FRSB
Chartered FCIPD
Dr Una Molloy
RGN, RM , BNS( Hons),
MSc Nursing, PhD
----- End of picture text -----

Dr Una Molloy RGN, RM , BNS( Hons), MSc Nursing, PhD Dr MichaelMoran PhD MMedSci MBBChBAO BSc (Hons) MRCS DO-HNS Mr Peter Pledger

The election of Trustees

The Trustees are elected at the Annual General Meeting of the charity by the members. Trustees are normally elected for an initial term of three years and, if reappointed, may serve for a second term of three years. In exceptional circumstances, the members may reappoint a trustee for a third term of three years. The maximum length of service is therefore nine years. The trustees, with the consent of the Provincial Superior of the Sisters of Charity, also have the power to co-opt people during the year to help deal with specific matters.

The Trustees are recruited and selected for their specific skills and experience, which currently cover law, finance, fundraising, business, clinical, nursing and healthcare.

St Joseph’s Hospice, Hackney

22

Policies and procedures relating to trustees’ training and induction

All Trustees receive induction on joining the Board so that they are equipped to carry out their role, as well as signing a statement of their willingness to serve as a trustee and completing a declaration of interests’ statement. Additionally, new Board members receive direct support from the Chair of the Board and the Chief Executive. In order to keep Board members informed about the charity’s on-going work, the Board receives reports from senior staff members as required. In addition, members of the Board meet from time to time more informally with the management team and other staff to work on specific areas of development.

Statement of Trustees’ responsibilities

The Trustees (who are also directors of St Joseph’s Hospice, Hackney, for the purposes of company law) are responsible for preparing the Trustees’ report and financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Trustees to prepare financial statements for each financial year, which give a true and fair view of the state of affairs of the charity and of the income and expenditure of the charity for that period.

In preparing these financial statements, the trustees are required to:

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

Each of the trustees confirms that:

so far as the Trustee is aware, there is no relevant audit information of which the charity’s auditor is unaware; and

the Trustee has taken all the steps that he/she ought to have taken as a trustee in order to make himself/herself aware of any relevant audit information and to establish that the charity’s auditor is aware of that information.

This confirmation is given and should be interpreted in accordance with the provisions of s418 of the Companies Act 2006.

Signed on behalf of the Trustees:

Trustee Date of approval: 30 November 2021

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23

Independent auditor’s report to the members of St Joseph’s Hospice, Hackney

Opinion

We have audited the financial statements of St Joseph’s Hospice, Hackney (the ‘charitable company’) for the year ended 31 March 2021 which comprise the statement of financial activities, the balance sheet, the statement of cash flows, the principal accounting policies and the notes to the financial statements. 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 charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We

believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company’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 and Financial Statements, 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.

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

St Joseph’s Hospice, Hackney

24

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 charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in 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 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 the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditor’s responsibilities for the audit of the financial statements

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

Irregularities, including fraud, are instances of noncompliance with laws and regulations. We design

Annual Report 2021

25

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.

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

We assessed the susceptibility of the charity’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and

To address the risk of fraud through management bias and override of controls, we:

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

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of key management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

St Joseph’s Hospice, Hackney

26

A further description of our responsibilities for the audit of the fi nancial 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 and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Amanda Francis , Senior Statutory Auditor for and on behalf of Buzzacott LLP, Statutory Auditor 130 Wood Street London EC2V 6DL December 2021

Annual Report 2021

27

Financial Statements

Statement of financial activities Year to 31 March 2021

----- Start of picture text -----
Un-restricted Restricted 2021 Total Un-restricted Restricted 2020 Total
funds funds funds funds funds funds
Notes £’000 £’000 £’000 £’000 £’000 £’000
Income and Expenditure
Income From:
Donations and legacies 1 2,762 159 2,921 5,057 87 5,144
Other trading activities: –
– Fundraising events 47 – 47 97 – 97
Investments and bank
deposits 2 733 36 769 534 27 561
Charitable activities 3 9,784 1,023 10,807 8,898 349 9,247
Other income
– Miscellaneous 6 1 7 25 4 29
Total income 13,332 1,219 14,551 14,611 467 15,078
Expenditure on:
Raising funds 4 758 – 758 817 – 817
Charitable activities –
– Hospice inpatient
care 5 8,591 701 9,292 8,563 77 8,640
– Hospice outpatient
and day services 5 986 8 994 791 7 798
– Community palliative
care services 5 1,708 291 1,999 1,926 209 2,135
– Psychosocial and
bereavement services 5 749 30 779 640 – 640
– Education, training
and research 5 268 – 268 253 32 286
– Patient café and
dining room 5 24 – 24 42 – 42
Other Costs 38 – 38 20 – 20
Total expenditure 13,122 1,030 14,152 13,052 326 13,378
----- End of picture text -----

St Joseph’s Hospice, Hackney

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----- Start of picture text -----
Un-restricted Restricted 2021 Total Un-restricted Restricted 2020 Total
funds funds funds funds funds funds
Notes £’000 £’000 £’000 £’000 £’000 £’000
Net Income before
Investment gains and
transfers 210 189 389 1,559 141 1,700
Net gains / (Losses) on
investments 11 1,317 178 1,495 1,557 (26) 1,531
Net income before
transfers 1,527 367 1,894 3,116 115 3,231
Transfers between
funds 14 69 (69) - 62 (62) -
Net income and net
movement in funds 7 1,596 296 1,894 3,178 53 3,231
Reconciliation
of funds
Balances brought
forward at 1 April
2020 35,456 1,912 37,368 32,278 1,859 34,137
Balances carried
forward at
31 March 2021 37,052 2,210 39,262 35,456 1,912 37,368
----- End of picture text -----

All of the charity’s activities derived from continuing operations during the above two years. All recognised gains and losses are included in the above statement of financial activities.

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Balance sheet

----- Start of picture text -----
2021 2021 2020 2020
Notes £’000 £’000 £’000 £’000
Fixed assets
Tangible assets 10 16,652 17,400
Investments 11 17,813 12,541
34,465 29,941
Current assets
Stocks 33 24
Debtors 12 2,665 2,063
Short term deposits 4,470 6,709
Cash at bank and in hand 31 37
7,199 8,833
Creditors: amounts falling due within one year 13 (2,402) (1,406)
Net current assets 4,797 7,427
Total net assets 39,262 37,368
The funds of the charity:
Income funds
Restricted funds 14 2,210 1,912
Unrestricted funds
. General funds 14,530 12,186
. Tangible fi xed assets fund 15 16,652 17,400
. Investment property fund 5,870 5,870
37,052 35,456
39,262 37,368
----- End of picture text -----

Approved by the trustees and signed on their behalf by:

Trustee

Date of approval: 30 November 2021

St Joseph’s Hospice, Hackney: Company Registration No. 05513914 (England and Wales)

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30

Statement of cash flows Year to 31 March 2021

----- Start of picture text -----
2021 2020
Notes £’000 £’000
Cash flows from operating activities:
Net cash provided by (used in) operating activities A 1,085 2,090
Cash flows from investing activities:
Investment income and interest received 769 561
Purchase of tangible fixed assets (322) (168)
-
Acquisition of Investments (3,777)
Proceeds from the disposal of investments - 122
Net cash (used in) provided by investing activities (3,330) 515
Change in cash and cash equivalents in the year (2,245) 2,605
Cash and cash equivalents at 1 April 2020 B 6,746 4,141
Cash and cash equivalents at 31 March 2021 B 4,501 6,746
----- End of picture text -----

Notes to the statement of cash flows for the year to 31 March 2021.

A Reconciliation of net movement in funds to net cash provided by operating activities

----- Start of picture text -----
2021 2020
£’000 £’000
Net movement in funds (as per the statement of financial activities) 1,894 3,231
Adjustments for:
Depreciation charge 743 744
Loss on disposal 327 -
Gains on investments (1,495) (1,531)
Investment income and interest receivable (769) (561)
Decrease in stocks (9) (2)
(Increase) / decrease in debtors (602) 215
Increase / (decrease) in creditors 996 (6)
Net cash provided by operating activities 1,085 2,090
B Analysis of cash and cash equivalents
2021 2020
£’000 £’000
Cash at bank and in hand 31 37
Short term deposits 4,470 6,709
Total cash and cash equivalents 4,501 6,746
----- End of picture text -----

No separate reconciliation of net debt has been prepared as there is no difference between the movements in cash and cash equivalents and the net cash (debt) of the charity.

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31

Principal accounting policies

The principal accounting policies adopted, judgements used and key sources of estimation and uncertainty in the preparation of the financial statements are laid out below.

Basis of preparation

These financial statements have been prepared for the year to 31 March 2021 with comparative information presented for the year to 31 March 2020.

The financial statements have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant accounting policies below or the notes to these financial statements.

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 United Kingdom and Republic of Ireland (Charities SORP FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

The charity constitutes a public benefit entity as defined by FRS 102.

The financial statements are presented in sterling and are rounded to the nearest thousand pounds.

Critical accounting estimates and areas of judgement

Preparation of the financial statements requires the trustees and management to make significant judgements and estimates.

The items in the financial statements where these judgements and estimates have been made include:

St Joseph’s Hospice, Hackney

32

Assessment of going concern

The trustees have assessed whether the use of the going concern assumption is appropriate in preparing these financial statements. The trustees have made this assessment in respect to a period of one year from the date of approval of these financial statements.

The restrictions due to the Covid-19 pandemic have lasted much longer than initially expected and had a significant impact on the hospice’s finances. The protracted nature of these restrictions means that there is still uncertainty as to when exactly when things will return to ‘normal’ or how the pandemic may change things.

The hospice’s commitment to supporting the NHS Covid-19 response was demonstrated through its agreement to offer St Anne’s Ward throughout 20/21, for which it was financially recompensed. The NHS also made emergency funding available to all hospices and the hospice accessed about £725k.

This NHS support and the hospice’s relationship with Clinical Commissioning Groups means that it remains well positioned relative to other hospices. The reliance on retail is low and prior to the pandemic it had already focused on growing enterprise. During the pandemic it was agreed to give rent reductions and holidays to our tenants and the hospice has worked closely with them to ensure they are able to continue occupying the hospice’s premises.

The trustees acknowledge supporters for continuing to donate to the hospice, enabling it to continue to carry out its work. The fact that the hospice continued to operate throughout the pandemic, with very limited furlough, demonstrates its commitment to the community it serves. There were clear risks with continuing to operate at the same expenditure level, but so far those risks have been managed effectively.

The timing of the pandemic (at the end of the 2019/20 financial year) meant the hospice reported a significant downturn in the value of its listed investments at 31 March 2020. However, these recovered in 20/21 and showed an unrealised gain at the end of the year of £1.5M.

As the restrictions further unwind during the first half of 21/22, the trustees expect inpatient activity to increase and the hospice will continue to work

with CCG’s and other stakeholders planning for the future. The trustees are optimistic that the charity continues as a going concern, with the level of assets required to meet its liabilities into the long-term, supported by future plans to diversify operations whilst continuing to demonstrate value for money for the NHS.

Income recognition

Income is recognised in the period in which the charity has entitlement to the income, the amount of income can be measured reliably and it is probable that the income will be received.

Income comprises donations, legacies, income from fundraising events, income from investments and bank interest, and contracts, service level agreements and grants income for the provision of healthcare and related services.

Donations are recognised when the charity has confirmation of both the amount and settlement date. In the event of donations pledged but not received, the amount is accrued for where the receipt is considered probable. In the event that a donation is subject to conditions that require a level of performance before the charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charity and it is probable that those conditions will be fulfilled in the reporting period.

In accordance with the Charities SORP FRS 102 volunteer time is not recognised.

Legacies are included in the statement of financial activities when the charity is entitled to the legacy, the executors have established that there are sufficient surplus assets in the estate to pay the legacy, and any conditions attached to the legacy are within the control of the charity. Entitlement is taken as the earlier of the date on which either: the charity is aware that probate has been granted, the estate has been finalised and notification has been made by the executor to the charity that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the charity has been notified of the executor’s intention to make a distribution. Where legacies

Annual Report 2021

33

have been notified to the charity, or the charity is aware of the granting of probate, but the criteria for income recognition have not been met, then the legacy is treated as a contingent asset and disclosed if material. In the event that the gift is in the form of an asset other than cash or a financial asset traded on a recognised stock exchange, recognition is subject to the value of the gift being reliably measurable with a degree of reasonable accuracy and the title of the asset having being transferred to the charity.

Investment income from listed investments is recognised once the dividend has been declared and notification has been received of the dividend due.

Investment income generated from investment properties is recognised at the point when the income is due to the charity under tenancy or lease agreements.

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

Contracts and service agreements in respect to the provision of healthcare services are recognised to the extent that it is probable that the economic benefits will flow to the charity and the revenue can be reliably measured. It is measured at fair value of the consideration received or receivable, excluding any relevant value added tax. Grants from government, NHS bodies, Clinical Commissioning Groups and from trusts and foundations have been included as income from charitable activities i.e. the provision of healthcare and related services where they amount to a contract for services but as donations where the money is given in response to an appeal or grant application or with greater freedom of use, e.g. for core purposes.

Expenditure recognition

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to make a payment to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably.

All expenditure is accounted for on an accruals basis. Expenditure comprises direct costs and support costs. All expenses, including support

costs, are allocated or apportioned to the applicable expenditure headings. The classification between activities is as follows:

All expenditure is stated inclusive of irrecoverable VAT.

Allocation of support and governance costs

Support costs represent indirect charitable expenditure. In order to carry out the primary purposes of the charity it is necessary to provide support in the form of personnel development, financial procedures, provision of office services and equipment and a suitable working environment.

Governance costs comprise the costs involving the public accountability of the charity (including audit costs) and costs in respect to its compliance with regulation and good practice.

Support costs and governance costs are apportioned based on the number of full time equivalent staff allocated to each of the charitable activities.

Tangible fixed assets

All assets costing more than £750 and with an expected useful life exceeding one year are capitalised.

Freehold land and buildings

Freehold land and buildings transferred to the charity on 1 April 2012 are included on the balance sheet at a valuation as at that date based on depreciated replacement cost. As permitted by FRS 102, this valuation is now assumed to be the deemed cost of these assets. Additions to freehold buildings since 1 April 2012 are included on the balance sheet at cost.

St Joseph’s Hospice, Hackney

34

Freehold buildings are depreciated at a rate of 2% per annum based on cost or deemed cost. No depreciation is charged on freehold land.

Major building refurbishment

Major building refurbishment since 1 April 2012 is included on the balance sheet at cost. Major building refurbishment, once completed, is depreciated at a rate of 10% per annum based on cost. Major building refurbishment that is in progress is capitalised but only depreciated in accordance with the above policy once complete.

Furniture, plant and equipment

Furniture, plant and equipment transferred to the charity on 1 April 2012 is included on the balance sheet at a valuation as at that date based on depreciated replacement cost. As permitted by FRS 102, this valuation is now assumed to be the deemed cost of these assets.

Expenditure since 1 April 2012 on the purchase and replacement of furniture, plant and equipment (including computer equipment (hardware and software)) is capitalised at cost. Furniture and equipment is depreciated over a four-year period on a straight line basis. Plant is depreciated over 20 years on a straight line basis.

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35

Motor vehicles

Motor vehicles transferred to the charity on 1 April 2012 are included on the balance sheet at a valuation as at that date based on depreciated replacement cost. Motor vehicles purchased since 1 April 2012 are capitalised at cost. As permitted by FRS 102, this valuation is now assumed to be the deemed cost of these assets. Motor vehicles are depreciated over a four-year period on a straight line basis in order to write off the cost of each motor vehicle over its estimated useful life.

Fixed asset investments

Listed investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing quoted market price.

The charity does not acquire put options, derivatives or other complex financial instruments.

As noted above the main form of financial risk faced by the charity is that of volatility in equity markets and investment markets due to wider economic conditions, the attitude of investors to investment risk, and changes in sentiment concerning equities and within particular sectors or sub sectors.

Properties held for investment purposes are included in these accounts at open market value. The valuations have been determined by the trustees, with professional assistance.

Realised gains (or losses) on investment assets are calculated as the difference between disposal proceeds and their opening carrying value or their purchase value is acquired subsequent to the first day of the financial year. Unrealised gains and losses are calculated as the difference between the fair value at the year end and their carrying value at that date. Realised and unrealised investment gains (or losses) are combined in the statement of financial activities and are credited (or debited) in the year in which they arise.

Stocks

Stocks of medical supplies, stationery and sundry stores are valued at the lower of cost and net realisable value.

Debtors

Debtors are recognised at their settlement amount, less any provision for non-recoverability. Prepayments are valued at the amount prepaid. They have been discounted to the present value of the future cash receipt where such discounting is material.

Cash at bank and in hand

Cash at bank and in hand represents such accounts and instruments that are available on demand or have a maturity of less than three months from the date of acquisition.

Short term deposits relate to cash held in deposit accounts for medium term use or future reinvestment, but which are available on demand or have a maturity less than three months from the date of acquisition.

Creditors and provisions

Creditors and provisions are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Creditors and provisions are recognised at the amount the charity anticipates it will pay to settle the debt. They have been discounted to the present value of the future cash payment where such discounting is material.

Fund structure

The general fund comprises those monies which may be used towards meeting the charitable objectives of the charity and which may be applied at the discretion of the trustees.

The tangible fixed assets fund represents the net book value of the land and buildings occupied by the charity and other tangible fixed assets. Such assets are vital to the charity being able to carry out its charitable work and the value invested in the assets cannot, therefore, be realised in order to meet future expenditure or contingencies. To emphasise this point, the net book value of the assets is represented by a specific tangible fixed assets fund on the balance sheet.

St Joseph’s Hospice, Hackney

36

The investment property fund represents the value of the buildings utilised by the charity to generate a commercial return. Such assets cannot be realised easily in order to meet future expenditure or contingencies. To emphasise this point, the value attributed to these assets is represented by a specific investment property fund on the balance sheet.

The restricted funds are monies raised for, and their use restricted to, a specific purpose, or donations subject to donor-imposed conditions.

Normal contributions are charged to the statement of financial activities when payable. The present value of the expected deficit recovery contributions is recognised as a liability at the balance sheet date. The amount is reviewed annually taking into account any changes to the deficit contribution rate or the implicit rate of interest used in discounting the liability.

Contributions in respect of personal pension schemes and defined contribution schemes are recognised in the statement of financial activities in the year which they are payable to the scheme.

Pension costs

Pension costs are payable in respect of defined contribution and defined benefit pension schemes. The charity is unable to identify its share of the underlying assets and liabilities of the defined benefit schemes on a reasonable and consistent basis. Therefore, in accordance with FRS 102, it has accounted for its normal contributions as if the schemes were defined contribution schemes.

Leased assets

Rentals applicable to operating leases where substantially all the benefits and risk of ownership remain with the lessor are charged to the statement of financial activities on a straight-line basis over the lease term.

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37

Notes to the financial statements

1 Income from: Donations and legacies

Unrestricted
funds
£’000
Restricted
funds
£’000
Total
2021
£’000
Unrestricted
funds
£’000
Restricted
funds
£’000
Total
2020
£’000
1,335
159
1,494
1,171
87
1,258
12
—
12
14
—
14
1,347
159
1,506
1,185
87
1,272
1,415
—
1,415
3,872
—
3,872
2,762
159
2,921
5,057
87
5,144
Donations
Donations of
cremation fees
received
Legacies
Total funds

We are grateful to all the individuals, trusts and companies who have supported our work this year.

2 Income from: Investments and bank deposits

Unrestricted
funds
£’000
Restricted
funds
£’000
Total
2021
£’000
Unrestricted
funds
£’000
Restricted
funds
£’000
Total
2020
£’000
268
36
304
200
27
227
461
—
461
312
—
312
4
—
4
22
—
22
733
36
769
534
27
561
Income from listed
investments
- UK common
investment funds
Rental income from
investment properties
Bank interest
Total funds

St Joseph’s Hospice, Hackney

38

3 Income from: Charitable activities

----- Start of picture text -----
Unrestricted Restricted Total Unrestricted Restricted Total
funds funds 2021 funds funds 2020
£’000 £’000 £’000 £’000 £’000 £’000
Statutory grants and
service agreements
- Clinical
Commissioning
Groups 9,440 787 10,227 8,576 — 8,576
Grants receivable –
Big Lottery — 133 133 — 138 138
Other grants
and service level
agreements 78 101 179 28 208 236
Fees for education
services and room
hire 114 — 114 164 — 164
Residences and other
rental income 84 — 84 31 — 31
Income from provision
of catering, telephone,
newspapers and
books 68 2 70 99 3 102
Total funds 9,784 1,023 10,807 8,898 349 9,247
----- End of picture text -----

Disclosure Note:

Following year end the Hospice received £534k of Covid-19 emergency grant funding from Hospice UK. This funding has not been recognised in these financial statements as the income recognition criteria were not deemed to have been met as at the reporting date.

Insufficient information was made available to the Hospice to confirm that it was entitled to further funds or enable a reliable estimate to be made of the probable value of receipt in advance of the date that they were received. The Trustees are satisfied that all reasonable endeavours were made by management prior and subsequent to the reporting date to determine the value of any further funds to be received by the Hospice and the likely timing of these funds.

4 Expenditure on: Raising funds

Direct
costs
£’000
Support
costs
(note 6)
£’000
Total
2021
£’000
Direct
costs
£’000
Support
costs
(note 6)
£’000
Total
2020
£’000
396
—
396
433
—
433
187
—
187
228
—
228
—
175
175
—
156
156
583
175
758
661
156
817
Staf costs
Other direct costs
Support costs
Total funds

Annual Report 2021

39

5 Expenditure on: Charitable activities

----- Start of picture text -----
Support Support
Direct costs Total Direct costs Total
costs (note 6) 2021 costs (note 6) 2020
£’000 £’000 £’000 £’000 £’000 £’000
Hospice inpatient care 6,764 2,528 9,292 6,572 2,068 8,640
Hospice outpatient
and day services 685 309 994 583 215 798
Community palliative
care services 1,493 506 1,999 1,647 488 2,135
Psychosocial and
bereavement services 559 220 779 488 152 640
Education, training
and research 215 53 268 233 53 286
Patient café and
dining room 24 — 24 42 — 42
Total funds 9,740 3,616 13,356 9,565 2,976 12,541
----- End of picture text -----

6 Support costs

----- Start of picture text -----
2021 2020
£’000 £’000
Staff costs 1,460 1,332
Recruitment and training 53 50
Services contracted out 16 42
Consumables 66 22
Maintenance and running costs 572 463
Depreciation 743 743
Loss on disposal of tangible fixed assets 327 —
Office expenses 535 462
Auditor’s remuneration 19 18
3,791 3,132
----- End of picture text -----

The allocation of support costs to raising funds and charitable activities based on the full-time equivalent staff allocated to each charitable activity.

7 Net income (expenditure) and net movement in funds

----- Start of picture text -----
2021 2020
This is stated after charging: £’000 £’000
Staff costs (note 8) 10,539 10,084
Auditor’s remuneration
- Current year audit fee 17 18
- Prior year audit fee — 4
- Other services: taxation compliance 2 —
Depreciation 743 743
Loss on disposal of tangible fixed assets 327 —
Operating lease rentals 22 9
----- End of picture text -----

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40

8 Staff costs and trustees’ remuneration

----- Start of picture text -----
2021 2020
£’000 £’000
Staff costs during the year were as follows:
Wages and salaries 8,533 8,109
Social security costs 846 812
Pension costs 517 502
9,896 9,423
Seconded and agency staff 643 661
10,539 10,084
----- End of picture text -----

The number of employees who earned £60,000 per annum or more (including benefits but excluding employer pension contributions) during the year was as follows:

----- Start of picture text -----
2021 2020
£60,001 - £70,000 7 5
£70,001 - £80,000 2 1
£80,001 - £90,000 — 1
£90,001 - £100,000 1 —
£110,001 - £120,000 1 1
----- End of picture text -----

Of those employees who earned £60,000 or more during the year (as defined above), employer contributions are made to money purchase schemes in respect of six employees (2020 – five employees), and to defined benefit schemes in respect of four employees (2020 – three employees). Total employer contributions to pension schemes in respect of such employees during the year amounted to £75,209 (2020 – £56,365).

When determining salary rates for clinical staff, the Hospice always makes reference to national pay agreements and considers the seniority and experience demanded by each post.

Key management personnel remuneration during the year totalled £511,441 (2020 – £595,092).

No trustees received any remuneration during the year (2020 – £nil) and no expenses were reimbursed to trustees (2020 – none).

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41

The average number of employees during the year, analysed per function, was as follows:

----- Start of picture text -----
2021 2020 2021 2020
Full time Full time Average Average
equivalent equivalent headcount headcount
Raising funds 9 9 10 10
Hospice inpatient care 143 145 179 174
Hospice outpatient and day services 9 7 12 10
Community palliative care services 15 16 16 17
Psychosocial and bereavement services 11 10 23 20
Education and training 3 3 4 5
Catering 5 – 8 –
Support and administration 22 23 23 25
217 213 274 261
----- End of picture text -----

9 Taxation

St Joseph’s Hospice, Hackney is a registered charity and is not liable to income tax or corporation tax on income derived from its charitable activities as it falls within the various exemptions available to registered charities.

10 Tangible fixed assets

----- Start of picture text -----
Furniture,
plant,
Freehold Major equipment
land and building and motor
buildings refurbishment vehicles Total
£’000 £’000 £’000 £’000
At cost or deemed cost
At 1 April 2020 16,039 3,189 2,229 21,457
Additions — 22 300 322
— —
Disposals (593) (593)
At 31 March 2021 16,039 2,618 2,529 21,186
Depreciation
At 1 April 2020 1,846 1,088 1,123 4,057
Charge for the year 231 309 203 743
— —
Disposals (266) (266)
At 31 March 2021 2,077 1,131 1,326 4,534
Net book values
At 31 March 2021 13,962 1,487 1,203 16,652
At 31 March 2020 14,193 2,101 1,106 17,400
----- End of picture text -----

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42

The Hospice’s freehold land and buildings held at 1 April 2012 were valued on a depreciated replacement cost basis by an external valuer, Gerald Eve LLP, following the transfer of assets and liabilities from The Religious Sisters of Charity Charitable Trust as at that date. The valuation was carried out in accordance with the valuation standards and guidance notes contained in the Valuation – Professional Standards, incorporating the International Valuation Standards (“the Standards”) of the Royal Institution of Chartered Surveyors (RICS) March 2012. Other tangible fixed assets transferred at that date are included at their net book value at the date of transfer i.e. 1 April 2012. As permitted by FRS 102, all valuations at 1 April 2012 are now assumed to be the deemed cost of the relevant assets. Additions to tangible fixed assets since 1 April 2012 are included at cost.

The Hospice restaurant was closed due to the pandemic; a closure that has become permanent. The residual net book value of £327k associated with the restaurant and its equipment has been written off.

Capital commitments

At 31 March 2021, the charity had £70K of capital commitments in relation to Solar Panel installation (2020 – none).

11 Investments

Investment
property
£’000
Listed
investments
£’000
Total
£’000
5,870
6,671
12,541
–
3,777
3,777
–
1,495
1,495
5,870
11,943
17,813
1,599
8,292
9,891
Market value at 1 April 2020
Acquisitions
Unrealised gains on revaluation
Market value at 31 March 2021
Cost of investments at 31 March 2021

Investment property comprises of:

Annual Report 2021

43

11 Investments (continued)

Listed investments held at 31 March 2021 comprised the following:

2021 2020
£’000 £’000
UK common investment funds
11,943		 6,671

At 31 March 2021, the charity’s investments comprised holdings in CCLA COIF Charities Investment Fund only.

12 Debtors

----- Start of picture text -----
2021 2020
£’000 £’000
Revenue grants and fees receivable 776 168
Legacies receivable 1,405 1,528
Investment income and interest receivable 141 56
VAT recoverable 159 108
Prepayments 93 112
Other debtors 91 91
2,665 2,063
----- End of picture text -----

13 Creditors: amounts falling due within one year

----- Start of picture text -----
2021 2020
£’000 £’000
Expense creditors 823 509
Social security and other taxes 223 227
Accruals 660 430
Deferred income 615 118
Other creditors 81 122
2,402 1,406
----- End of picture text -----

Deferred income consists of grants and contractual income received in advance.

2021
£’000
118
578
(81)
615
Balance as at 1 April 2020
Income deferred in the year
Income released in the year
Balance as at 31 March 2021

St Joseph’s Hospice, Hackney

44

14 Restricted funds

The income funds of the charity include restricted funds comprising the following donations and grants held on trusts to be applied for specific purposes:

Mission
fund
£’000
Other
restricted
funds
£’000
2021
£’000
Mission
fund
£’000
Other
restricted
funds
£’000
2020
£’000
1,584
328
1,912
1,607
252
1,859
36
1,183
1,219
33
434
467
—
(1,030)
(1,030)
(7)
(319)
(326)
178
—
178
(26)
—
(26)
(23)
(46)
(69)
(23)
(39)
(62)
1,775
435
2,210
1,584
328
1,912
At 1 April 2020
Income
Expenditure
Gains on listed
investments
Transfers
At 31 March 2021

The specific purposes for which the funds are to be applied are as follows:

Mission fund

This fund is to provide for resources to promote the mission statement and core values of Religious Sisters of Charity and St Joseph’s Hospice. Transfers to unrestricted funds represent qualifying expenditure that was not charged to the fund when incurred.

Other restricted funds

These comprise monies provided to cover nursing and other specific costs. Transfers to unrestricted funds represent qualifying expenditure that was not charged to the relevant fund when incurred.

15 Tangible fixed assets fund

----- Start of picture text -----
2021 2020
£’000 £’000
At 1 April 2020 17,400 18,333
Capital Purchases 322 167
Depreciation Charge for year (743) (743)
–
Loss on disposals of assets (327)
–
Reclassification to Investment Properties (357)
At 31 March 2021 16,652 17,400
----- End of picture text -----

16 Investment property fund

2021
£’000
2020
£’000
5,870
3,886
–
1,984
5,870
5,870
At 1 April 2020
Net movement in the year
At 31 March 2021

Annual Report 2021

45

17 Analysis of net assets between funds

----- Start of picture text -----
Tangible
General fixed assets Investment Restricted Total
funds fund property funds 2021
£’000 £’000 fund £’000 £’000 £’000
Fund balances at 31 March 2021 are represented by:
— — —
Tangible fixed assets 16,652 16,652
Investments 10,181 — 5,870 1,762 17,813
Current assets 6,751 — — 448 7,199
Creditors: amounts falling due within
— — —
one year (2,402) (2,402)
Total net assets 14,530 16,652 5,870 2,210 39,262
Accumulated unrealised gains included
above consists of:
- On listed investments 3,277 — — 374 3,651
— — —
- On investment properties 4,271 4,271
3,277 — 4,271 374 7,922
Reconciliation of movements in
unrealised gains on investments
Unrealised gains at 1 April 2020 1,960 — 4,271 196 6,427
Add: Net unrealised gains in the year 1,317 — — 178 1,495
Unrealised gains at 31 March 2021 3,277 — 4,271 374 7,922
Tangible Investment
General fixed assets property Restricted Total
funds fund fund funds 2020
£’000 £’000 £’000 £’000 £’000
Fund balances at 31 March 2020 are represented by:
— —
Tangible fixed assets 17,400 17,400
Investments 5,087 — 5,870 1,584 12,541
Current assets 8,506 — — 328 8,833
Creditors: amounts falling due within
— — —
one year (1,406) (1,406)
Total net assets 12,186 17,400 5,870 1,912 37,368
Accumulated unrealised gains included
above consists of:
- On listed investments 1,960 — — 196 2,156
— — —
- On investment properties 4,271 4,271
1,960 — 4,271 196 6,427
Reconciliation of movements in unrealised gains on investments
Unrealised gains at 1 April 2019 2,152 — 2,548 222 4,922
—
Add: Net unrealised gains in the year (192) 1,723 (26) 1,505
Unrealised gains at 31 March 2020 1,960 — 4,271 196 6,427
----- End of picture text -----

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46

18 Pension costs

National Health Service Scheme

Retirement benefits for nursing staff and staff previously employed by the National Health Service (NHS) are provided by a defined benefit scheme, the National Health Service Pension Scheme, which is funded by contributions from the Hospice and the employees.

The National Health Service Pension Scheme is an unfunded scheme. Contributions on a ‘pay-as-you-go’ basis are credited to the Exchequer under arrangements governed by the Superannuation Act 1972. Actuarial valuations are carried out on a notional set of investments.

The charity is unable to identify its share of the underlying assets and liabilities as each employer is exposed to actuarial risks associated with the current and former employees of other entities participating in the National Health Service Pension Scheme. For schemes like this, FRS 102 requires the charity to account for normal pension contributions on the basis of amounts payable to the Scheme in the year.

The Hospice has set out below the information available on the deficit in the scheme and the implications for it in terms of the anticipated contribution rates.

The pension cost is assessed in accordance with the advice of the government actuary. The assumptions and other data that have the most significant effect on the determination of the contributory levels are as follows:

----- Start of picture text -----
Latest actuarial valuation 31 March 2016
Actuarial method Prospective benefits
Discount rate (real rate) 2.8% until 2019 and
then 2.4%
Discount rate (nominal rate) 4.86% until 2019 and
then 4.45%
Pension increases 2.0%
Long term salary growth 4.2% (CPI + 2.2%)
Value of assets at date of last valuation £278.1 billion
Value of liabilities at date of last valuation £297.5 billion
Proportion of members’ accrued benefits covered by the actuarial value of the assets 93.5%
The employer’s contribution rate for the year 20.6%
----- End of picture text -----

Contributions paid to the Scheme during the year amounted to £421,914 (2020 – £455,387), of which £176,843 (2020 – 196,960) were employees’ contributions.

Royal London Pension Scheme

This is a defined contribution scheme where employees can choose their level of contribution.

Annual Report 2021

47

19 Related party transactions

St Joseph’s Hospice, Hackney is connected to The Religious Sisters of Charity Charitable Trust, a registered charity, Charity Registration Number 231323, by virtue of the fact that the two charities have some trustees in common.

During the year, the following transactions took place between the charity and The Religious Sisters of Charity Charitable Trust:

During the year, trustees made donations to the charity totalling £nil (2020 - £8,089).

There were no other related party transactions during the year (2020 - none).

20 Liability of the members

The charity is constituted as a company limited by guarantee. In the event of the charity being wound up, members are required to contribute an amount not exceeding £1.

21 Operating lease commitments

At 31 March 2021, the Hospice had the following future commitments under non- cancellable operating leases, relating to items of equipment; and a five-year lease on a shop, which is cancellable after three years, with a maximum increase rate of 10% at unspecified review dates.

2021
£’000
2020
£’000
22
33
44
22
66
55
Operating leases payments due:
- within one year
- within one to two years

The lease relates to commitment on our Retail Shop.

22 Post Balance Sheet Event

On 22 October 2021 the charity set up Five Sisters Managed Services, a wholly owned trading subsidiary (company registration number 13698763). The company was established to provide catering services and began trading on 30 October 2021.

St Joseph’s Hospice, Hackney

48

49 nnual Report 2021

St Joseph’s Hospice, Mare Street, Hackney, London E8 4SA

T: 020 8525 6000 E: info@stjh.org.uk www.stjh.org.uk

Founded in 1905 under the care of the Religious Sisters of Charity. Charity No. 111312550