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← St Joseph's Hospice Hackney

2024-03-31-accounts

Annual Report and Financial Statements

31 March 2024

St Joseph’s Hospice, Hackney Charity Registration No.: 1113125 Company Registration No.: 05513914 (England and Wales)

Company Limited by Guarantee

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Contents

Reports 3
Reference and administrative information 3
Chair’s statement 5
Message from the Joint CEOs 6
Trustees’ report (incorporating the strategic report) 7
Independent auditor’s report 26
Financial Statements
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Consolidated statement of financial activities 30
Balance sheets 32
Consolidated statement of cash flows 33
Principal accounting policies 34
Notes to the financial statements 40

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Reports

Reference and administrative information

Board of Trustees

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Mr Paddy McGuinness CMG, OBE, MA (Chair)

©:

Mr Michael Moran Ph.D MMedSci, MBBChBAO, BSc (Hons) MRVS, DO-HNS

Mr Peter Pledger

Mr Nick Howard ~~.~~ 2B Mr Edward Davies MA (Oxon)

Mr Edward McGuigan BA, FFA, FIPA

Prof. Jim McManus

BD (Hons,) OCDS, CPsychol, CSci, AFBPsS, FFPH, FRSB Chartered FCIPD

Margaret Doherty BA (Hons), DEBA, MCIPR

Jane Heffernan

BA (Hons), MA, NPQH NPQEL

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Senior Management Team

Senior Management Team
Joint Chief Executive Tony McLean SRN, RMN, RHV, Fellow of IOD
Joint Chief Executive / Jane Naismith RN, QN, PGCE, BSc (Hons), MSc
Director of Clinical Services
Medical Director and Consultant
Dr Andrew Tysoe-Calnon BSc, MBBS, FRCP
in Palliative Medicine
Director of Finance, IT & Facilities David French FCCA, MBA (Open)
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 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
Upper Borough Court
Upper Borough Walls
Bath BA1 RG
Bankers Barclays Bank plc
1 Churchill Place
London E14 5HP
The Co-operative Bank plc
80 Cornhill
London EC3V 3NJ

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Chair’s statement

On 5[th] May 2023, the WHO declared an official end to what they described as a three-year public health emergency. Whilst the impact of Covid will remain with us for a long time, the formal end of the emergency was a prompt for St Joseph’s to look forward to what promises to be an even brighter future. These transitions are not new to our Hospice. Events now echo the return to normal after the Flu epidemic of just over a hundred years ago where we also made our contribution and built ourselves up afterwards.

We Trustees remain ever grateful to the skills and dedication of our staff who kept us and our patients’ safe through a challenging period. We are grateful too for the leadership shown by our CEO Tony McLean, alongside his now Co-CEO Jane Naismith. The Hospice has continued to thrive under their leadership and good governance, alongside the executive team.

Our priority is that all activities at the Hospice further the cause of excellent care for the sick, the dying and for their families. In this, we are inspired by the five Religious Sisters of Charity who founded the Hospice in 1905. Their Catholic Mission and Values live on in our own. We give thanks for our link to the RSC and the Archdiocese of Westminster and our Patron Cardinal Vincent Nichols.

Faith remains a cornerstone of our foundation. The work of a multi-faith Chaplaincy team supports people of all faiths and none, reflecting the diverse communities that we are proud to serve.

Through careful stewardship, we have again met our financial targets. This would not have been possible without support from volunteers who give us their time so freely, and our individual and corporate donors and all who all gave and raised funds for us. Without your charity and generosity, we would not have helped so many. I thank you on behalf of my fellow Trustees.

May God bless all who have made the work of the Hospice possible.

Paddy McGuinness CMG OBE Chair of Trustees

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Message from the Joint CEOs

We have emerged unscathed from the pandemic, but as a nation we are now facing the impact of the cost of living crisis. Despite these challenges, we are proud that St Joseph’s has remained stable throughout. We are in a good place. This is in no part thanks to our talented senior leadership team, staff and volunteers, and of course our Board of Trustees who continue to provide solid governance and clear strategic direction.

The demand on our services continues to rise. The number of IPU admissions remains high, referrals for day services are increasing year on year, and the number of patient contacts made by the Community Palliative Care Team (CPCT) continues to grow – up by 12% compared with the previous year.

We take care to monitor patient demographics so that we can continue to evolve our services to best meet their needs. Our core boroughs are among some of the most diverse in the country. The proportion of Global Majority (non-White British) service users continues to increase year on year, from 56.78% in 2022-23, to 62.55% in 2023-24. This is reflected in the fact that on any given day, there can be forty-four different languages spoken by staff, patients, visitors and callers – up from 39 the year before. The age profile is broadly in line with the previous year, but we are seeing far more non-cancer patients – now almost half (47%), compared with 36% a year ago.

We are now four years into delivering Vision 2024 – our five-year strategy - and are planning its next phase. We have taken many steps forward with all five pillars against a challenging external environment, while remaining true to our Mission and core values, and at the same time ensuring we balance the books.

We remain humbled by the professionalism and commitment demonstrated every day by our staff and supporters.

Tony McLean Joint Chief Executive

Jane Naismith Joint Chief Executive

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Trustees Report (incorporating the Strategic Report)

Introduction

The Trustees present their statutory report together with the consolidated financial statements of St Joseph’s Hospice, Hackney, for the year ended 31 March 2024. 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 Vlll of the Charities Act 2011.

The financial statements consolidate the accounts of St Joseph’s Hospice with those of its fully owned trading subsidiary, Five Sisters Managed Services Limited, which was established on 22 October 2021.

The financial statements have been prepared in accordance with the accounting policies set out on page 34 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 in the United Kingdom and Republic of Ireland (FRS 102).

Overview

“The hospice makes one understand that dying means living before death, because even the last phase of earthly life can be lived consciously and organised individually. Far from being a “home for the dying,” this place becomes a threshold of hope which leads beyond suffering and death’’

Pope, St John Paul II - June 1998 Rennweg Hospice, Vienna

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

The provision of outstanding standards of care for our patients and their families is our primary priority. In achieving the level of care which we do, our team of highly skilled and innovative clinical and nursing staff work tirelessly to ensure that all our services are specifically tailored to each individual person under our care. Patients come to the hospice often with complex medical conditions.

At St Joseph’s we have an expert multi-disciplinary team always ready to positively meet those complex medical conditions, ensuring that our care always begins and remains with the patient and their family, who are at the very centre of everything that we do. That same specialist support and expertise in end-of-life care is also provided to generalist services within the hospitals and communities within our catchment area and wider area.

In addition, we offer expert advice and support to other professionals, in specialist palliative and end of life care, we deliver specialised education and training, and we 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

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which their poverty takes, whether it be poverty in health, economic condition, social circumstance, or emotional or spiritual need.

We operate the Hospice in full sight of the highest clinical and ethical standards, underpinned by our Catholic values. We are profoundly committed to our responsibility to promote a clear vision of the highest quality in specialist 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.

Approximately half of our income comes from the NHS through our contracts with Integrated Care Boards (ICBs), which means we need to raise an additional £7million a year just to meet our existing operating costs and commitments. This funding comes from the legacies, individual and corporate donations, and other fundraising initiatives that we undertake. We owe a significant debt to the generosity and goodwill of our corporate sponsors, our local communities, and many others in the City, across London, as well as nationally and internationally. We thank them for their continued commitment to us, and the considerable support that they offer us, year after year.

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

We continue to develop new sources of funding to augment the income that 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, Mission, and Core Values.

A key element of these enterprises is our continuing commitment 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 valueadded efficiency and effectiveness.

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Objectives and activities

Charitable objectives and 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 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.

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Care of the poor and vulnerable/advocacy

We are 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 five-year strategic plan. Vision 2024 continues to underpin our strategic path, setting out how we planned to develop and invest in the Hospice until the end of 2024, with the flexibility to respond to the evolving external environment, including the changing profile and needs of the population we serve. Our leadership team, ensured that we remain on track to deliver our goals, driving each of the plan’s five pillars – Patients, People, Enterprise, Estates, and Funding and Fundraising.

We are currently in the final stages of refining Vision 2029 which will build on the achievements of Vision 2024 as we set our strategic ambitions for the next five years.

Patients

Our primary priority remains unchanged - to deliver an outstanding quality of service to our patients. We maintain and enhance our reputation as a centre of excellence for specialist palliative care through our continued close working with colleagues within primary care, and our local hospitals. Our services include:

The planned respite service transitioned to become the planned rehabilitation and enablement service in January 2024.

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Demand on the Hospice remains extremely high. In the year to March 2024, we recorded a total of 6,270 patient contacts which included both bereavement contacts and external referrals from the geographical areas we serve. This is the highest number of contacts we have experienced over the last four-year period. The number of external referrals for all services in our core areas of care also increased, from 2,470 last year to 2,813 in 2023-24 – a 14% increase year on year.

The number of Day Hospice appointments has also increased by 10% to 965 compared with the previous year (872). Total annual appointments are now running in excess of prepandemic levels.

The volume of patient contacts made by the Community Palliative Care Team (CPCT) including bereavement in the community contacts has increased exponentially, from 17,559 last year, to 24,185 in 2023-24. CPCT visited more than 2,500 patients in their homes.

Bed occupancy has increased year on year from 51% last year to 67% during 2023-24. Of patients admitted to the Hospice almost a third were discharged to their usual place of residence which included their own home, their care home or into the care of a relative. We remain focused on advance care planning and detailed conversations with patients on their preferred place of death. In 2023-24 almost three quarters (74%) of patients who died whilst under our care did so in their preferred place of death. This was a slight reduction on 2022-23 where slightly less than 80% of patients who expressed a wish to die in their home as the preferred place of death, did so.

The geographical area which the Hospice serves presents a complex tapestry of ethnic and cultural diversity just as existed in 1905. Our imperative is to uphold the profound values which we inherited from our founding Sisters. No less amongst those values is Compassion for and Love of all humanity. We strive to uphold the exemplar gifted to us as we serve and support all and every member of the communities which we serve regardless of circumstance.

It is our ongoing Mission to reach out to all, especially to those who may not traditionally have considered using our range of Hospice services. We all work extremely hard to meet the varying needs and expectations of every patient, and those of their families and carers, regardless of their cultural, spiritual, ethnic, gender or sexual orientation. We offer culturally sensitive diets, a comprehensive range of advocacy services, as well as a multi-faith Mission and Chaplaincy service.

We at St Joseph’s are exclusively committed to continuing the work of those five Religious Sisters of Charity who arrived in Hackney in 1905. They faced a herculean task as they spread their ministry of selfless love, expressed through acts of kindness towards others. By loving selflessly without expectation of receiving, they exemplified the highest form of love – Charity.

Each and every day at St Joseph’s we continue to cherish and honour the truly universal nature of our shared Catholic heritage.

Our ability to communicate effectively with those we serve is essential and, on any given day, the range of languages spoken by our staff, patients, visitors, volunteers and callers, number in excess of forty distinct languages and dialects.

In the last year, in order to further improve access to information about the Hospice and our services, we developed new features to within our website whereby every page can be translated into multiple languages, which are presented in both written and spoken word.

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This year we also created a wonderful new film ‘What is a Hospice’ featuring Justin Melluish, an actor with Downs Syndrome.

We continually develop, direct, and enhance our service provision to ensure that we dovetail into the specific needs of our patients and their relatives and carers to ensure that we exceed their expectations whilst fully respecting their unique identity.

The pandemic delayed further our planned refurbishment of St Michael’s ward with work starting during the year we are reporting on. We are delighted to report that the refurbishment was completed in the early part of the 2024-25 year with the ward being officially reopened by our Hospice Patron, His Eminence, Cardinal Vincent Nichols, Bishop of Westminster on 11 June 2024.

This 15-bed ward design presents a calm, safe, and peaceful environment providing patients and their families with wonderful spaces in which to socialise and relax surrounded by warm, vibrant, and restful colours which enhance the positive experience we know exists within St Joseph’s. We look forward to reporting next year, the patient and relative feedback which we will receive over the coming year.

We work extremely hard in providing a warm, welcoming, and comfortable environment for our patients, their families, and all our visitors and staff. This includes our five-star rated catering provision, with food freshly prepared by our kitchen staff each and every day.

Visitors as well as staff continue to enjoy an ever-expanding range of affordable hot and cold food and drinks from our ever popular Five Sisters Café, and everyone can relax and unwind when visiting our spectacular award-winning gardens.

People

Our HR department continues to drive forward its staff development programme that aims to deepen and improve our organisational and cultural strength to better serve those who need our care.

A key priority for the Board is to enable our staff and volunteers to make their fullest contribution to the Mission of the Hospice. Their welfare is critical to this, and we continually survey the staff experience within St Joseph’s to make sure our staff and volunteers remain safe. Our emphasis on wellbeing has continued to centre on the cost-of-living crisis. We have introduced a life insurance (Death in service) benefit and we have reviewed our pension provision, migrating to a pension provider which will hopefully offer better retirement benefits and the opportunity for salary exchange.

We continue in our development of and our approach to equality, diversity, and inclusion - EDI – which enhances everything we do as we seek to gain accreditation as a FREDIE ( F airness, R espect, E quality, D iversity, I nclusion and E ngagement) organisation. This year we have become a White Ribbon organisation as well as achieving Disability Confident Employer status. We have co-created our policy, guidance and approach to staff experiencing menopause and menstruation.

Training, Education and Development

Training, education, and development remain high on our agenda, and we currently have 23 managers actively engaged on the ILM programme, two of whom have been awarded Fellowship of the Institute of Leadership status. Our statutory and mandatory compliance level remains at 95% across the Hospice.

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Our apprentice scheme is also running well, with nine staff apprentices working towards occupational qualifications.

We have returned to completing our Mental Health First Aid programme including Suicide First Aid, and have introduced Oliver McGowan training which highlights the particular needs and experiences of people with learning disabilities and autism.

Staff Engagement and Voice

Our one staff concept is continuing within the organisation. This ensures continuing staff recognition culminating in employees and volunteers celebrating activities such as the Annual Service Awards, the Above and Beyond Awards, ‘Staff Love’ to mark calendar events such as Valentine’s Day, celebrating the Hospice’s birthday, and St Joseph’s Day.

This year we have created closer joined up working between the SMT and service leads, and we are developing our Values and Behaviours framework to further embed our Core Values within every aspect of Hospice life. We have incorporated PSIRF and Just Culture principles into our employment policies.

Hospice news is communicated regularly by our Joint CEOs who hold CEO Clinics every two months. A FREDIE Bulletin has joined the quarterly CEO Bulletins, SMT surgeries, and the quarterly People Bulletin. News is also distributed through our intranet and email system, and heads of department are circulated with a weekly summary of key SMT discussion points.

Freedom to Speak Up

We have 13 ‘Freedom to Speak Up’ champions. They report into the Guardians who have oversight on clinical and non-clinical processes and policies. We are delighted that a wellestablished culture of speaking up has continued in its development. This will further enhance established processed in patient and staff safeguarding within the Hospice.

The Guardians and Champions have actively addressed and promoted the Freedom to Speak Up learning which has arisen following notable legal prosecutions. All staff and Trustees are training at the appropriate level in Freedom to Speak processes and principles.

Two Freedom To Speak Up guardians represent the Hospice in matters involving the Office of the National Guardian, with one guardian continuing as Chair of the Hospice Freedom to Speak Up Network.

Enterprise

Our Enterprise strategy – developed as a pillar within Vision 2024 back in 2019 to establish more predictable, sustainable, and new income streams remains firmly established as an important source of income for the Hospice. This assists with our ongoing strategy of finding new ways to fill the financial gap between our running costs and the income that we derive from our NHS block contract and fundraising.

We have made efficient use of our space resource and, without impacting the Hospice’s clinical or operational functions, we have rented or leased entire floors or rooms to local organisations that are fully aligned with our overall Ethos and Core Values.

Demand for commercial office space within the Hospice site currently outstrips supply, and we remain at full occupancy, with all tenants or licence holders choosing to renew at the

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end of their terms. This is against the trend of other commercial properties which are still trying to regain ground that was lost as a result of the pandemic, and despite the prevailing economic downturn. We are maintaining an active occupancy waiting list, and hope to be able to release additional space for Enterprise within the coming financial year. We are committed to respecting the occupancy space required for core hospice activity as our enterprise efforts support all patient centred services.

In 2022 we took over responsibility for the management of a neighbouring Hospice-owned building from the previous long-term leaseholder and, having navigated that transition, we successfully retained the two incumbent tenants and secured a third on a lease basis.

Additionally, we also generate rental and hospitality income from our state-of-the-art education and conference facilities. Our Garden Room continues to host community-based organisations, social enterprises and commercial businesses for meetings, events, and workshops.

We have experienced a remarkably successful year for our Retail portfolio, and have fully recovered from the impact of the pandemic. Our flagship shop on Mare Street opposite the Hospice is firmly established and attracts a number of regular customers, and the pop-up shop in nearby Well Street continues to sell low-cost goods to the1 local population. Our aim is to secure a permanent shop in that street. We still retain two rent-free pop-up units adjacent to our Mare Street shop, which are branded as Five Sisters® Home to sell donated furniture, with the second positioned as Five Sisters® Books.

In addition to our shops and as part of our Mission, we hold regular ‘pound sales’ in order to sell low-cost goods to the local community, participate in local vintage and pop-up markets, and maintain a presence at Broadway Market when space is available. We continue to be extremely grateful to the local community for their support and the generosity and quality of their donations.

The Retail strategy is to further extend our portfolio, with the aim of opening one to two additional shops a year in our core boroughs.

On-site, we continue to provide low-cost on-site accommodation to our nursing staff. As well as providing a valuable service to them and generating an additional Enterprise income stream, the ability to offer on-site accommodation is a useful tool in our armoury when recruiting staff from further afield. We also offer rooms to overseas students who attend the Hospice to participate in some of our training programmes.

Five Sisters® Managed Services – the separate company established in November 2021 as a platform to provide commercial services to external organisations – continues to successfully provide a full catering service to another hospice. Results will be reported separately in Five Sisters® Managed Services accounts.

Estates & IT

It has been a busy year for both departments – which are continually supported through participating in the lions’ share of our routine annual capital expenditure.

We have boosted the Facilities management team, creating the new role of Hotel Services Manager. This post entails responsibility for both portering and housekeeping as well as having key links with catering and the inpatient wards. At St Joseph’s we remain immensely proud of the quality of our housekeeping – a service which is essential in adding value to the care experience for our patients and their families.

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Environmental sustainability remains a key feature of our planning and during this year three major projects included the installation of more solar panels on our roofs, and the replacement of the existing radiators with energy efficient versions. We regularly review technological innovation within the Hospice and in November 2023 we installed a voltage optimisation system which regulates and reduces the voltage required by electronic equipment. This system was initially installed in a small part of our estate and the initial indications are that electricity consumption has fallen by about 10% as a consequence. There are plans to roll the same technology out across the larger part of our estate in 2024/25. These measures will drive the continued downward trend in our annual energy consumption and should contribute positively to reducing our carbon footprint.

The Estates team at St Joseph’s work on both planned and reactive maintenance and this year we have been assessing the balance between the two – with the result that we have implemented more planned maintenance contracts. One of the beneficiaries of this approach was our launderette. Two washing machines have been replaced this year and we have used the opportunity to take out a planned maintenance contract on all the laundry equipment – a service that is vital to the ongoing quality of care at the Hospice. Such ancillary services appear almost the silent contributor however we recognise the critical contribution which they make towards patient comfort and hygiene standards.

There have also been some changes within our IT team during the year. We took the opportunity to create a data analyst role to support our new ‘Project Opus’ which will involve a deep dive into the way we manage data and information. The information team now has one clinical analyst, who will continue to focus on clinical data, and one data analyst, who focuses on the non-clinical data. Following a long illness, the IT team lost a much loved and valued colleague in 2023.

The key focus on IT this year has been planning how we deliver our services into the future and we have been reviewing the way we support the rest of the hospice including our out of hours provision. Our mid-term focus is to become ‘serverless’ as far as possible within the next five years. This year, we replaced several of our servers with the commitment that this is the last time we will do so. In future, cloud-based systems will prevail.

The IT team is also planning two significantly sized projects. The first of these is the replacement of our current patient administration system following the supplier having recently confirmed the imminent obsolescence of the current software iteration. We are commencing an eighteen-month development and implementation plan on this project.

The other project we are scoping is the telephony system, although this is not due for replacement for a couple of years. In the field of IT telephony, five years seems like a lifetime and comprehensive scoping is an absolutely imperative to ensure that we have a system which is as future proofed as possible.

The key to success for both the Facilities and IT departments is comprehensive with excellent planning and implementation processes which run in tandem with the clinical teams. The communication links between both teams excellent.

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Gardens

As ever, our gardens remain a feature we are so proud of and the team that manages them are much valued, and are also multi-award winning. This year, the gardens hosted several events including a carers garden party, a staff barbeque, and the London Open Gardens weekend. The latter event involved the general public attending, which presented a perfect opportunity to promote the Hospice. On a daily basis and throughout the year, these gardens are open and accessible to patients, relatives, and staff both night and day.

We have considered how we can protect pedestrians entering the Hospice and have created a dedicated walkway, with our flower beds acting as a separation between pedestrians and vehicles. This enhances safety, as well as creating aesthetic improvements.

Health and Safety

St Joseph’s prides itself in being a learning organisation, and inherent to good Health & Safety practices lie in continual education. We always aim to get our processes, procedures, and policies right at every opportunity especially in an such a complex discipline.

Our Health and Safety consultants have supported significant and positive progress in this field over the last few years by developing an all-staff ethos. Health & Safety never stands still and St Joseph’s recognises this. Over recent years, we have developed one of our key external relationships with PIB, our insurance brokers, and we now work in partnership with them to ensure the highest possible compliance in all aspects of Health and Safety policy as it relates to the Hospice.

At the last health and safety audit, PIB scored us a rating of 84% (80% is the threshold for good) which demonstrates continuing progress and development. We intend to build on this progress as we strive to achieve our ambition of reaching outstanding in the scoring framework. Our partnership with PIB has transparency at its core, which reassures our insurers on risk level. PIB and our external fire advisor provide additional sense-checks as we continue on our journey of improvement.

During the year we undertook a full review of our high-level risk assessments to ensure that they reflect our current business risk and consequently we have expanded the number of risk assessments to over fifty. Staff throughout the organisation are engaged with risk assessments which is greatly reassures us as individual and collective responsibility are enhanced. During 202324 this was demonstrated by the engagement of our maintenance staff who collectively undertook manual handling, working at heights and ladder training.

Whilst we take staff on a journey of improved awareness and understanding of risk, we do so with a ‘light-touch’ so that they feel engaged and eager to approach managers regarding training, rather than feeling pressurised into the training. The rewards of such an approach create a disproportionately positive dividend as we see the internal health and safety culture steadily change.

Governance of Health & Safety is crucial and our advisor acts largely independently, being accountable to the Health & Safety Committee, which reports into the SMT and ultimately to the Board of Trustees. The Committee is responsible for ratifying policies and training that supports our ethos. Training participation has improved and at the year-end was at 97%, which further demonstrates the positive engagement of our staff.

Our incidence management database (Datix) is invaluable as a tool to help us comply with RIDDOR and to be a reflective tool that enables us to move further forwards in all matters Health & Safety.

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Energy and carbon reporting

This year, the hospice has continued on its journey reducing energy consumption with projects that include new radiators and more solar panels, voltage optimisers being installed and battery storage.

The Hospice continues to be engaged in a process aimed at reducing our greenhouse gas emissions.

St Joseph’s incurs scope 1 and 2 emissions (natural gas and electricity) on our main site and in our shops and we have a longstanding commitment to tackling climate change and reducing carbon emissions. In previous years, we have taken numerous steps to reduce consumption including the solar panels, LED lighting and replacement boilers.

Our calculated carbon footprint for the 2023/24 is 1,127 metric tonnes and is based on total

energy consumption of 2,816MWh.

Our CO2 per FTE shows a 12% reduction to 5.10, which is the same percentage reduction as the previous year, demonstrating that our energy saving measures continue to have a positive impact.

The data in the below table has been calculated using the calculation tools provided by the Greenhouse Gas Protocol (GHG) and the principles of the Greenhouse Gas Protocol (GHG) Corporate Accounting and Reporting Standard (Revised Edition).

UK Emissions and Energy Use data for period 1[st] April to 31[st] March

Our CO2 per FTE shows a 12% reduction to 5.10, which is the same percentage reduction
as the previous year, demonstrating that our energy saving measures continue to have a
positive impact.
The data in the below table has been calculated using the calculation tools provided by the
Greenhouse Gas Protocol (GHG) and the principles of the Greenhouse Gas Protocol
(GHG) Corporate Accounting and Reporting Standard (Revised Edition).		 Our CO2 per FTE shows a 12% reduction to 5.10, which is the same percentage reduction
as the previous year, demonstrating that our energy saving measures continue to have a
positive impact.
The data in the below table has been calculated using the calculation tools provided by the
Greenhouse Gas Protocol (GHG) and the principles of the Greenhouse Gas Protocol
(GHG) Corporate Accounting and Reporting Standard (Revised Edition).		 Our CO2 per FTE shows a 12% reduction to 5.10, which is the same percentage reduction
as the previous year, demonstrating that our energy saving measures continue to have a
positive impact.
The data in the below table has been calculated using the calculation tools provided by the
Greenhouse Gas Protocol (GHG) and the principles of the Greenhouse Gas Protocol
(GHG) Corporate Accounting and Reporting Standard (Revised Edition).
UK Emissions and Energy Use data forperiod 1st April to 31st March
2023/24 2022/23
Energy Consumption
Electricity 914,487 918,957
Gas 1,901,094 2,597,245
**Total Consumption(kWh) ** 2,815,581 3,516,202
Direct Energy Emissions
Electricity 777.31 781.11
Gas 349.56 477.56
**Total Emissions(Metric Tonnes) ** 1,126.87 1,258.67
Intensity Ratio metric:
Tonnes CO2per Staff FTEper annum
5.10
5.74

Funding and Fundraising

St Joseph’s Hospice is committed to responsible fundraising, complying with regulatory standards, and ensuring that it is delivered in a manner consistent with our Core Values. We are registered with the Fundraising Regulator and are committed to the Fundraising Promise and adhere to the Code of Fundraising Practice. Any third-party agencies we use for the purpose of our fundraising are contractually obliged to adhere to the relevant codes of practice.

St Joseph’s Hospice does not share any of its supporter data with other charities or companies unless we have a data-sharing agreement in place allowing us to do so. Our legal basis is “legitimate interest” for new supporters who have provided us with an address and/or telephone

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number and “consent” for supporters who provide email addresses and mobile numbers. We regularly review supporter journeys to ensure we protect potentially vulnerable supporters and to address process improvements following supporter feedback.

We complete an annual complaints return for the fundraising regulator. Fundraising complaints reported during 2023/24 was 8 (2022/23 - 4).

This year saw the Fundraising team deliver year two of its three-year plan, focussing on rebuilding relationships and income growth post pandemic.

Our accounts show that the cost of Fundraising has increased by 34% to £1.254M compared to last year.

The second year of our strategy has gone well. Despite the cost-of-living crisis, we succeeded in growing our income year on year. Our key pillars for success are:

We have increased our face-to-face activity through a third-party provider in 2023-24 and will continue this work in 2024-25. In addition, we have appointed a new third-party telephone fundraising agency to conduct calls on our behalf and this relationship will also continue into 202425. Relationships with third-party online processing platforms and legacy administration also continue.

In terms of our key successes, we added a further 1,000 new regular givers to our supporter base, and are proud that we were elected as charity of the year by both the Speaker of Hackney and Speaker of Tower Hamlets, which helped to raise money and the profile and awareness of the Hospice.

We have also further developed our links with the City of London through its livery and ward clubs. This supports our fundraising activity, but more importantly gives us an opportunity to remind them that we are the hospice that serves the City. We are very grateful to the Lord Mayor of London who hosted two events that enabled us to illuminate our work and our need to raise £7M a year.

Successful events included the London Marathon in April that exceeded its target, the Hackney Half in May, a team abseil on the London Orbit, and our ever-popular annual East End Walk. Special events were a fundraising appeal in May to celebrate International Nurses Day, followed by Flowers of Celebration in June in which more than 200 beautiful blue ceramic flowers were planted in our Flowers of Celebration Garden.

We work closely with our local community, and in December 2023 8 schools and 1 local football club took part in our annual Rudolph Run, with hundreds of children donning antlers for the sponsored walk. In the same month we held our annual Light up a Life service, at which more than 350 people joined us to remember lost loved ones.

As part of our legacy strategy, we hold will writing workshops in partnership with local legal firms. Across the year, seventy-four people attended to find out more about our free will writing services and estate planning.

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This year we held our first Spring Ball. We hope that this will be the beginning of many such successful events and we thank the National Australia Bank and Canary Wharf Contractors Fund for their support.

We acknowledge the support of our generous supporters and wonderful corporate and community partners, without whom we would be unable to provide the outstanding levels of care for which we are known.

We would like to take this opportunity to thank the Rayne Foundation for supporting Namaste Care, St John of Southworth Fund for supporting Compassionate Neighbours, the Hodge Foundation for purchasing sleep chairs and Inman Charity for funding a new wheelchair ramp for patients.

Hospice Finances

At St Joseph’s we focus on our operational performance as that ensures our long-term financial sustainability and it has again been a satisfactory year resulting in a small operational deficit. This is primarily thanks to our continued sound control of expenditure. Prudent financial management is not a matter of luck, rather it is based on confidence in delivery, trust, and teamwork. Our strong internal controls ensure we forecast expenditure with a high degree of confidence, but above all, our staff demonstrate that their purchasing is pragmatic. We are reviewing our scheme of delegation to enable increments in managers ordering limits with a view to securing additional discounts.

2023-24 was year one of a five-year statutory contract with the NHS, which enables the hospice to continue to develop in a stable and positive fashion. Fundraising and Enterprise retain a solid performance, with both projected to increase yields in the next five years. Legacies are by their nature volatile, but this year we achieved legacy income £2.2M for the hospice which reflects the great love and respect which those who have gone before us held for St Joseph’s.

Whilst operational financial performance remains our primary financial health indicator, we also keep a careful watch on of the value of our investment portfolio, which is held by CCLA. Over the past three years we have focused on holding more of our cash in CCLA and this year it again yielded a solid return of approaching 10%.

Including a revaluation of our commercial property, the total financial value of the Hospice rose by nearly £3.9M.

Our subsidiary company, Five Sisters Managed Services Ltd., had a more difficult year financially due to ongoing staffing issues which resulted in the use of more expensive agency staff for several months. Despite this, turnover increased and the company generated a healthy surplus for the hospice. We have a profit-share arrangement in place with Saint Francis Hospice and this continued to work well – the donation in 2024 was £20k, slightly up on the previous year. Saint Francis recognise the value of this joint arrangement and we plan to use it in future contracts.

With the balance sheet growing by £3.9M, the overall financial health of the organisation is in no doubt as long as we remain pragmatic and prudent. This year however, the biggest challenge we faced was the relationship between cash and debtors.

Whilst our policy is to invest surplus cash into CCLA, we have had to reverse this in 23/24. Greater focus has been given to our cash forecasting and treasury management – and that is a challenge which our finance function relishes. The ward refurbishment project cost £1.8M of which donations accounted for about half of this. This will result in a world-class palliative care ward. Regrettably we had not quite anticipated a significant slowdown in cash receipts from legacies – the debtor figure increasing by 233% to £2.8M. Several high value legacies which included property had an impact in this. Consequently, we had to transfer money from CCLA into our current account to bridge the difference. We have healthy and close relationships with both our fund managers at CCLA and

19

Barclays Bank and we are developing our treasury management processes over the next year in an attempt to smooth out any anomalies. Barclays has signalled its long-term confidence in the hospice by inviting us to apply for funding.

Our capital expenditure plan continues to be focused on environmental sustainability to the extent that in this financial year we invested in more solar panels, energy efficient radiators throughout the hospice and voltage optimisation controls. We continue to demonstrate the commitment towards our staff and this year refurbished staff changing rooms and installed air-conditioning into more offices.

From a financial perspective it is important to conclude that this year’s financial performance was underpinned by our commitment to world-class services and we would never seek to deliver a financial performance that compromised this commitment. Our highly effective finance department inherently supported our quality healthcare provision which patients and their families enjoy every day at St Joseph’s. Our finance team is proud to contribute towards achieving the best experience for all we serve at St Joseph’s.

Reserves Policy

The Trustees have set a minimum free reserves target of nine months operating expenditure.

Included in their consideration are the winding up costs of the organisation which have been calculated at around six months. At current expenditure levels, nine months expenditure represents £11.4 million. To ensure the ongoing viability of the Hospice they have deemed that we need to have sufficient funds to sustain a period of income uncertainty whilst maintaining expenditure on clinical quality.

Whilst there is no ‘set’ figure for reserves, the pandemic has also demonstrated how organisations need to keep sufficient funds available for significant adverse events and the Trustees are confident that this policy ensures the sustainability of the Hospice, even through major short to medium term adverse events.

The Trustees have decided that reserves in excess of nine-months can be designated for projects which will benefit the hospice as a centre of excellence in Palliative Care for years to come. The designations are reviewed regularly and amended accordingly if required.

Investment Policy

Listed Investments

Our listed investments continue to be held with CCLA. Our policy has two broad financial aims, in addition to ensuring our investments are held with organisations who are sympathetic to our mission and values.

The £1.459M gain in 23/24 represents 9.3% of our average portfolio value (average of the opening and closing values).

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There have been no material movements in our portfolio this year. We have withdrawn £2M to fund our ward refurbishment project and to support our current account cash balances due to the low cash received from legacies.

==> picture [290 x 176] intentionally omitted <==

----- Start of picture text -----
Unrealised Gains or Losses on CCLA Portfolio
2,038
=>
1,495 1,459
— «6=«§l§s§§$ rté‘t(eSUS
1,004
—_ mma [6]
177
OO
(192)
(680)
————————
2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24
----- End of picture text -----

Note: All numbers are in £000’s

Investment Property

The Hospice holds investment property which we rent out and has a current market value of £8.7M, an increase following the latest valuation. The policy sets out to deliver an annual 7.5% return on the market value.

This year, due to changes in tenants and rent reviews, we earned £631k, which is a 12% return (22/23 - £608k). This represents a 3.8% increase. This includes sums received from external tenants and staff who rent rooms.

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 (2022/2023: no remuneration).

No Trustee expenses were paid during the year.

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Risk management

The Senior Management Team and Board regularly review risk and have put in place a learning infrastructure, which can identify risk, review, and implement change.

Our policies and procedures are reviewed by independent external assessors and where recommendations are made, we take corrective action. Policies are also reviewed periodically to ensure they remain relevant.

The risk register forms an integral part of our risk assessment and is supported by various committees that meet regularly. Sitting under our corporate risk register is a suite of department risk registers, which are reviewed on a quarterly basis, or more regularly if specific new risks materialise (or risks are eliminated).

All staff undergo relevant training and accreditation and our Health & Safety Coordinator ensures that risk assessments and learning are a normal part of our operations. These risk assessments are owned by the relevant person within the organisation, inspiring a positive health and safety culture.

We work closely with PIB, our insurance brokers to ensure that our health and safety processes are aligned with our insurer’s guidance. PIB conducts an annual on-site audit which scores the hospices overall health & safety rating, but also identifies weaknesses, which the Health & Safety Coordinator actions as a workplan for delivery. During the year, our overall score rose to 84% which is a good rating.

We are continually reviewing our Business Continuity Plan to help identify and mitigate risk at an organisational level and using that to inform some of our departmental strategies.

Our corporate risk register is discussed at each Board, where Trustees are able to challenge management on risks and mitigation.

The Health & Safety Committee has primary oversight and its representation is from all areas of The Hospice. Policy revisions are ratified at this committee, which recommends proposals for further improvements.

At the Hospice our aim is to mitigate risk as far as possible and this requires a learning culture – our primary reporting tool being Datix. Staff are encouraged to record incidents to support this learning and the reflective outcomes are part of the process of dealing with any adverse incidents.

The role of Health & Safety Coordinator cannot be understated – supporting a multidepartment approach to risk management where required and ensuring that teams and individuals receive the correct specialist training (in addition to mandatory training) where required.

Financial sustainability

Following another good year, our financial outlook for the medium to long-term remains positive. 2023/24 saw the first year of our new ICB contract and we have a good relationship with our commissioners, who view us as the ‘go to’ Palliative Care specialists.

We have recognised that expenditure management will form a key component of our financial strategy for the next few years, but we are taking strides to ensure this is done in a planned way and mitigating this with new income generation ideas.

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We were able to weather the energy increases due to a combination of our incumbent approach to environmental efficiency which had already seen some energy saving measures, and short-term government support. Since summer 2023, prices have started to settle, although it is unlikely they will ever return to the pre-crisis levels.

At the Hospice we continued to demonstrate commitment to our staff by matching the pay rise given by the NHS. Although this will create additional pressure on our cost-base we are currently confident that this is a manageable approach.

Income generation plans are in place in Fundraising and Enterprise and both teams are working dynamically to ensure the Hospice aspires towards financial balance. We opened one new shop in the financial year and another one is planned for 2024. We are reviewing estate usage to increase the volume of tenants.

The commitment to good financial probity is further demonstrated by our approach to finance balance. During the year, we have been analysing our expenditure base to identify efficiency opportunities which either have no impact on clinical quality or improve it.

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 we run outpatient clinics in Newham. 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 day-to-day running of St Joseph’s Hospice and to inform and implement Board decisions.

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

Trustees

The Trustees listed on page 3 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 2024 and up to the date on which this report was approved are shown below.

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Directors

Appointed//Resigned Mr Paddy McGuinness CMG, OBE, MA (Chair) Mr Edward McGuigan BA, FFA, FIPA Mr Michael Moran Ph.D MMedSci MBBChBAO, Bsc (Hons) MRVS, DO-HNS Prof. Jim McManus BD (Hons), OCDS, CPsychol CSi, AFBPsS, FFPH, FRSB Chartered FCIPD Mr Peter Pledger Margaret Doherty BA (Hons), DEBA, MCIPR Mr Nick Howard Appointed 23[rd] August, 2023 Jane Heffernan Appointed 23[rd] August, 2023 BA (Hons), MA, NPQH, NPQEL Mr Edward Davies Appointed 23[rd] August, 2023 MA (Oxon) Sister Rita Dawson MBE DL Resigned 16[th] November 2023 RSC MSc BSc (Hons) RGN RSCN Una Molloy RGN, RM Resigned 12[th] September 2023 BNS( Hons), MSc Nursing, phD

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 Congregational Leader 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.

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 Chief Executive. In order to keep Board members informed about the charity’s ongoing work, the Board receives reports from senior staff members as required. Moreover, 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

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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 Group and the Charity and of the income and expenditure of the Group and 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 Group and the Charity and hence taking reasonable steps for the prevention and detection of fraud and other irregularities.

Each of the Trustees confirms that:

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

Signed on behalf of the Trustees:

Trustee

Date of approval: 17[th] September 2024

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Independent Auditors Report to the Member of St Joseph’s Hospice, Hackney

Opinion

We have audited the financial statements of St Joseph’s Hospice, Hackney (the Charitable Company and its subsidiary (the group’) for the year ended 31 March 2024 which comprise the consolidated statement of financial activities, the Group and Charity balance sheets, the consolidated statement of cash flows, the charity statement of financial activities, 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 Group and Charitable 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 Group and 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 obtained in the audit or

26

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

Responsibilities of Trustees

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

In preparing the financial statements, the Trustees are responsible for assessing the Group’s and Charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the 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

27

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 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 Group and Charity’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

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

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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.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at www.frc.org.uk/auditors responsibilities. 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.

Peter Mackereth, Senior Statutory Auditor For and on behalf of Buzzacott LLP, Statutory Auditor 130 Wood Street London EC2V 6DL

31 October 2024

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Financial statements

Consolidated statement of financial activities Year to 31 March 2024

Unrestricted Restricted 2024
Unrestricted		 Restricted
2023
funds funds Total funds funds funds Total funds
Notes
£'000		 £'000 £'000 £'000 £'000 £'000
Income and Expenditure
Income From:
Donations and legacies 1 3,589 667 4,256 3,873 20 3,893
Other trading activities:
Charity shops 220 - 220 185 - 185
Five Sisters Managed Services Ltd 297 - 297 240 - 240
Investments and bank deposits 2 1,092 58 1,150 1,063 55 1,118
Charitable activities 3 9,390 111 9,501 8,853 405 9,258
Miscellaneous Income 64 - 64 29 - 29
Total income 14,652 836 15,488 14,243 480 14,723
Expenditure on:
Raising funds:
Costs of generating donations &
legacies 4 1,254 - 1,254 930 - 930
Costs of trading
. Charity Shops 4 225 - 225 121 - 121
. Investment property costs 124 - 124 104 - 104
. Five Sisters Managed Services Ltd 275 - 275 203 - 203
Charitable Activities
. Hospice inpatient care 5 8,986 155 9,141 8,292 270 8,562
. Hospice outpatient and day services 5 964 10 974 1,147 10 1,157
. Community palliative care services 5 2,368 20 2,388 2,132 82 2,214
. Psychosocial and bereavement
services 5 753 41 794 740 38 778
. Education, training and research
5 318 - 318 301 - 301
. Patient café and dining room 38 - 38 32 - 32
Total expenditure 15,305 226 15,531 14,002 400 14,402
Net Income before Investment gains
and transfers (653) 610 (43) 241 80 321
Net (Losses)/gains on investments 12 3,818 153 3,971 (325) (75) (400)
Net income before transfers 3,165 763 3,928 (84) 5 (79)
Transfers between funds 15 930 (930) - 47 (47) -
Net income and net movement in
funds 7 4,095 (167) 3,928 (37) (42) (79)
Reconciliation of funds
Balances brought forward at 1 April
2023 38,385 2,395 40,780 38,422 2,437 40,859
Balances carried forward at
31 March 2024 42,480 2,228 44,708 38,385 2,395 40,780

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Charity statement of financial activities Year to 31 March 2024

Income From:
Donations and legacies 1 3,619 667 4,286 3,873 20 3,893
Other trading activities:
Charity shops 220 - 220 185 - 185
Five Sisters Managed Services Ltd
Investments and bank deposits 2 1,092 58 1,150 1,063 55 1,118
Charitable activities 3 9,390 111 9,501 8,886 405 9,291
Miscellaneous Income 64 - 64 29 - 29
Total income 14,385 836 15,221 14,036 480 14,516
Expenditure on:
Raising funds:
Costs of generating donations & legacies 4 1,254 - 1,254 930 - 930
Costs of trading
. Charity Shops 4 225 - 225 121 - 121
. Investment property costs 124 - 124 104 - 104
Charitable Activities
. Hospice inpatient care 5 8,986 155 9,141 8,292 270 8,562
. Hospice outpatient and day services 5 964 10 974 1,147 10 1,157
. Community palliative care services 5 2,368 20 2,388 2,132 82 2,214
. Psychosocial and bereavement services 5 753 41 794 740 38 778
. Education, training and research
. Patient café and dining room		 5
5		 318
38		 -
-		 318
38		 301
32		 -
-		 301
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Total expenditure 15,030 226 15,256 13,799 400 14,199
Net Income before Investment gains
and transfers (645) 610 (35) 237 80 317
Net gains / (Losses) on investments 12 3,818 153 3,971 (325) (75) (400)
Net income before transfers 3,173 763 3,936 (88) 5 (83)
Transfers between funds 15 930 (930) - 47 (47) -
Net income and net movement in funds
7		 4,103 (167) 3,936 (41) (42) (83)
Reconciliation of funds
Balances brought forward at 1 April
2023 38,385 2,395 40,780 38,426 2,437 40,863
Balances carried forward at
31 March 2024 42,488 2,228 44,716 38,385 2,395 40,780

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Balance sheets as at 31 March 2024

Group Charity
2024 2023 2024 2023
Notes Notes
£'000		 £'000 £'000 £'000
Fixed Assets
Tangible assets 11 16,834 16,022 16,834 16,022
Investments 12 24,683 22,712 24,683 22,712
41,517 38,734 41,517 38,734
Current assets
Stocks 6 35 - 30
Debtors 13 3,831 2,021 3,835 1,981
Short term deposits 384 1,882 384 1,882
Cash at bank and in hand 1,051 182 1,030 163
5,272 4,120 5,249 4,056
Creditors: amounts falling due
within one year 14 (2,081) (2,074) (2,050) (2,010)
Net Current assets 3,191 2,046 3,199 2,046
Total net assets 44,708 40,780 44,716 40,780
The funds of the charity:
Income funds
Restricted funds 15 2,228 2,395 2,228 2,395
Unrestricted funds
. General funds 11,747 16,168 11,747 16,168
. Designated Funds 16 5,200 5,200 -
. Tangible fixed assets fund 17 16,834 16,022 16,834 16,022
. Investment property fund 18 8,707 6,195 8,707 6,195
, Non-Charitable trading funds 10 (8) - - -
42,480 38,385 42,488 38,385
44,708 40,780 44,716 40,780

Approved by the Trustees and signed on their behalf by:

Trustee

Date of approval: 17[th] September 2024

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

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Statement of cash flows Year to 31 March 2024

Group
Charity		 Group
Charity
2024
2023
2024
2023
Notes
£'000
£'000
£'000
£'000
Cash flows from operating activities
Net cash provided by (used in) operating
activities
A
(2,593)
153
(2,595)
202
Cash flows from investing activities
Investment income and interest received
1,150
1,118
1,150
1,118
Purchase of tangible fixed assets
(1,186)
(642)
(1,186)
(642)
Acquisition of Investments
-
(750)
-
(750)
Proceeds from disposal of investments
2,000
2,000
Net cash used in investing activities
1,964
(274)
1,964
(274)
Change in cash and cash equivalents in the year
(629)
(121)
(631)
(72)
Cash and cash equivalents at 1 April 2023
B
2,064
2,185
2,045
2,117
Cash and cash equivalents at 31 March 2024
B
1,435
2,064
1,414
2,045
Notes to the statement of cash flows for the year to 31 March 2024
A
Reconciliation of net movement in funds to net cash provided by operating activities
2024
2023
2024
2023
£'000
£'000
£'000
£'000
Net movement in funds (as per the statement of financial
activities)		 3,928
(79)
3,936
(83)
Adjustments for:
Depreciation charge
866
808
866
808
loss/(Gains) on investments
Investment income and interest receivable		 (3,971)
400
(3,971)
400
(1,150)
(1,118)
(1,150)
(1,118)
Decrease / (Increase) in stock 29
(4)
30
1
Decrease / (Increase in debtors (1,810)
503
(1,854)
543
Increase/(Decrease) in creditors (485)
(357)
(452)
(349)
Net cash provided by (used in) operating activities (2,593)
153
(2,595)
202
B
Analysis of cash and cash equivalents
2024
2023
2024
2023
£'000
£'000
£'000
£'000
Cash at bank and in hand
Short term deposits		 1,051
182
1,030
163
384
1,882
384
1,882
Total cash and cash
equivalents		 1,435
2,064
1,414
2,045

33

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.

These financial statements have been prepared for the year to 31 March 2024 with comparative information presented for the year to 31 March 2023.

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.

Basis of consolidation

The financial statements consolidate the accounts of St Joseph’s Hospice, Hackney with those of its wholly owned subsidiary, Five Sisters Managed Services Limited to the balance sheet date. All figures are consolidated on a line by line basis.

Critical accounting estimates and areas of judgment

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:

Assessment of going concern

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

34

Over the past few years, the Hospice has faced Brexit, the pandemic and the subsequent cost of living crisis that have brought a range of challenges including a national shortage of staff, increase in energy prices and general inflation. Despite this we have delivered an aggregate operational surplus demonstrating our continued ability to manage finances well whilst delivering quality care to patients.

We have increased our Enterprise and are continually reviewing the efficiency of our expenditure base. We are entering Year 2 of a five year NHS contract and have good relationships with commissioners.

Reserves remain healthy and the Trustees have confidence in us continuing to deliver Palliative Care in East London for a long time into the future.

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 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.

35

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 Group and 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:

Allocation of support and governance costs

Support costs represent indirect charitable expenditure. In order to carry out the primary purposes of the Group and 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 Group and 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

Freehold land and buildings

Transfers 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

36

valuation is now assumed to be the deemed cost of these assets. Additions since 1 April 2012 are included on the balance sheet at cost. 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.

Plant and equipment

Transfers 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 since 1 April 2012 on the purchase and replacement are capitalised at cost. Plant and equipment is depreciated between 10 and 20 years on a straight line basis, dependent upon the individual asset. 

Computer equipment

Additions are capitalised at cost. Computer equipment is depreciated over a three year period on a straight line basis in order to write off the cost of over its estimated useful life.

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.

Furniture

Transfers 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 since 1 April 2012 are capitalised at cost. Furniture is depreciated over a four-year period on a straight line basis

Fixed asset investments

The main form of financial risk faced by the Group and 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.

37

resulted in an increased valuation to £8.7M. The basis for valuation has been amended this year. We aim to make a 7.5% average return on commercial property and the valuer has used this figure as the basis for the valuation. Previously, the valuation was based on differing returns for our commercial property, but the new basis uses this standard basis.

Investment by the Charity in the issued share capital of Five Sisters Managed Services Limited is shown at cost.

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.

Stock

The value of charity stock is immaterial for the size of the organisation. Thus, stock is charged directly to the I&E. This has been changed for the 2023/24 accounts following a review of our stock management and handling systems. The stock held by Five Sisters Managed Services Ltd is held on the group balance sheet.

Debtors

Debtors are recognised at their settlement amount, less any provision for nonrecoverability. Prepayments are valued at the amount prepaid.

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 Group and Charity anticipate they 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. The investment property fund represents the value of the buildings utilised by the Charity to generate a commercial return. Such assets

38

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. Other funds have been designated for specific purposes as described later in this report.

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

Non-charitable trading funds comprise the accumulated losses of the subsidiary company, Five Sisters Managed Services Limited.

Operating Leases

An operating lease is a lease that does not transfer substantially all the risks and rewards incidental to ownership of an underlying asset to the lessee. Lease payments are recognised as an expense on a straight-line basis over the lease term.

The Hospice identifies a contract as a lease if it conveys the right to control the use of an identified asset for a period of time in exchange for consideration.

Changes to lease terms are accounted for by adjusting the lease expense over the remaining lease term.

Pension Costs

Pension costs are payable in respect of defined contribution and defined benefit pension schemes. The Group and Charity are unable to identify their 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. Normal contributions are charged to the statement of financial activities when payable.

39

Notes to the financial statements

1. Income from: Donations and legacies

Group
Unrestricted
funds
Restricted
funds
Total
2024
Unrestricted
funds
Restricted
funds
Total
2023
£'000
£'000
£'000
£'000
£'000
£'000
Donations
1,218
667
1,885
1,265
20
1,285
Donations of cremation fees received
13
-
13
10
-
10
1,231
667
1,898
1,275
20
1,295
Legacies
2,358
-
2,358
2,598
-
2,598
Total funds
3,589
667
4,256
3,873
20
3,893

1. Income from: Donations and legacies

Charity
Unrestricted
funds
Restricted
funds
Total
2024
Unrestricted
funds
Restricted
funds
Total
2023
£'000
£'000
£'000
£'000
£'000
£'000
Donations
1,248
667
1,915
1,265
20
1,285
Donations of cremation fees received
13
-
13
10
-
10
1,261
667
1,928
1,275
20
1,295
Legacies
2,358
-
2,358
2,598
-
2,598
Total funds
3,619
667
4,286
3,873
20
3,893

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 Restricted Total Unrestricted Restricted Total
Group and Charity funds funds 2024 funds funds 2023
£'000 £'000 £'000 £'000 £'000 £'000
-
Income from listed investments
UK common investment funds 413 58 471 424 55 479
Rental income from investment
properties 631 - 631 608 - 608
Bank interest 48 - 48 31 - 31
Total funds 1,092 58 1,150 1,063 55 1,118

40

-

3. Income from: Charitable activities

Unrestricted Restricted Total Unrestricted Restricted Total
Group funds funds 2024 funds funds 2023
£'000 £'000 £'000 £'000 £'000 £'000
Statutory grants and service agreements
Integrated Care Boards 9,074 48 9,122 8,602 325 8,927
Grants receivable - Big Lottery - - - - - -
Other grants and service level
agreements - 63 63 25 80 105
Fees for education services and room
hire 137 - 137 94 - 94
Residencies and other rental income 84 - 84 65 - 65
Income from provision of catering,
newspapers and books 95 - 95 67 - 67
Total funds 9,390 111 9,501 8,853 405 9,258
3. Income from: Charitable activities
Charity
Unrestricted
funds
Restricted
funds
Total
2024
Unrestricted
funds
Restricted
funds
Total
2023
£'000
£'000
£'000
£'000
£'000
£'000
Statutory grants and service
agreements
Clinical Commissioning Groups
9,074
48
9,122
8,602
325
8,927
Grants receivable - Big Lottery
-
-
-
-
-
-
Other grants and service level
agreements
-
63
63
25
80
105
Fees for education services and room
hire
137
-
137
127
-
127
Residencies and other rental income
84
-
84
65
-
65
Income from provision of catering,
newspapers and books
95
-
95
67
-
67
Total funds
9,390
111
9,501
8,886
405
9,291

4. Expenditure on: Raising funds - costs of generating donations & legacies and costs of charity shops

Support Support
Direct costs
Total		 Direct costs
Total
Group and Charity costs (note 6) 2024 costs (note 6) 2023
£'000 £'000 £'000 £'000 £'000 £'000
Staff costs 715 - 715 544 - 544
Other direct costs 400 - 400 269 - 269
Support costs - 364 364 - 238 238
Total funds 1,115 364 1,479 813 238 1,051

41

5. Expenditure on: Charitable activities

Support Support
Direct costs
Total		 Direct costs Total
Group and Charity costs (note 6) 2024 costs (note 6) 2023
£'000 £'000 £'000 £'000 £'000 £'000
Hospital inpatient care 6,720 2,421 9,141 6,367 2,195 8,562
Hospice outpatient and day services 672 302 974 825 332 1,157
Community palliative care services 1,778 610 2,388 1,681 533 2,214
Psychosocial and bereavement services 598 196 794 597 181 778
Education, training and research 251 67 318 240 61 301
Patient café and dining room 38 - 38 32 - 32
Total funds 10,057 3,596 13,653 9,742 3,302 13,044

6. Support costs

6. Support costs
2024 2023
Group and Charity £'000 £'000
Staff costs 1,488 1,361
Recruitment and training 253 251
Services contracted out 54 64
Consumables 44 34
Maintenance and running costs 744 515
Depreciation 866 808
Office expenses 468 462
Auditors remuneration 44 45
Total funds **3,961 ** 3,540

Support costs are allocated 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
Group
This is stated after charging:
2024
2023
£'000
£'000
Staff costs (note 8)
11,463
10,811
Auditors remuneration
.Current year audit fees
26
27
.Prior year audit fees
-
14
.Fees for VAT Advice
-
6
.HR advisory & assurance services
18
-
Depreciation
866
808
Operating lease rentals
11
33		 Charity

2024
2023
£'000
£'000
11,309
10,729
26
25
-
14
-
6
18
-
866
808
11
33

42

8.
Staff costs and trustees'
remuneration
Staff costs during the year were as
follows
Wages and salaries
Social security costs
Pension costs
Seconded and agency staff		 Group
Charity


2024
£'000
2023
£'000
2024
£'000
2023
£'000
9,492
8,917
9,426
8,853
991
969
984
964
588
553
585
550
11,071
10,439
10,995
10,367
392
372
314
362
11,463
10,811
11,309
10,729

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


pension contributions) during the year was as follows:
pension contributions) during the year was as follows:
Group and Charity
2024
2023
£60,001 - £70,000
11
7
£70,001 - £80,000
5
2
£80,001 - £90,000
3
4
£100,001 - £110,000
-
2
£110,001 - £120,000
2
1

Of those employees who earned £60,000 or more during the year (as defined above), employer contributions were made to money purchase schemes in respect of nine employees (2023 – six employees), and to defined benefit schemes in respect of eleven employees (2023 – nine employees).

Total employer contributions to pension schemes in respect of such employees during the year amounted to £159,858 (2023 -£128,616).

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 £608,960 (2023 – £625,842)

No Trustees received any remuneration during the year (2023 – £nil) and no expenses were reimbursed to Trustees (2023 – £nil). The average number of employees during the year, analysed per function, was as follows:

43

2024
2023
2024
2023
Full time
equivalent
Full time
equivalent
Average
Headcount
Average
Headcount
Raising funds 18
13
19
14
Hospice inpatient care 133
135
155
157
Hospice outpatient and day services 8
10
11
13
Community palliative care services 15
15
16
16
Psychosocial and bereavement services 10
10
22
22
Education and training 3
3
4
4
Hospice Catering 7
6
8
7
Support and administration 27
27
30
29
221
219
265
262

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. The subsidiary company Five Sisters Managed Services Limited has entered into a Gift Aid compliant Deed of Covenant whereby it donates its taxable profits (if any) to its parent charity each year. In the year to 31 March 2024, the amount payable was £30,467 (2023 –£28,506). Five Sisters incurred a tax charge of £8,314. This was necessary following an administrative error relating to the payment of the 2023 gift aid which has resulted in the company incurring a tax charge.

10. Subsidiary undertaking

The Charity owns the entire issued share capital of £1 in Five Sisters Managed Services Limited, a company registered in England and Wales (Company Registration Number 13698763). The subsidiary was set up on 22 October 2021. The results of the subsidiary for the year ended 31 March 2024 and comparative results for 31 March 2023.

Five Sisters® Managed Services Ltd
2024
2023
£'000
£'000
Turnover 297
240
Cost of Sales (86)
(60)
Gross Profit. 211
180
Administrative expenses (181)
(147)
Operating Profit/(loss) before tax 30
33
Corporation Tax (8)
Gift Aid (30)
(29)
(Loss)/Profit for theyear (8)
4
Accumulated losses at 31 March 2024 (8)
-

44

As at 31[st] March 2024, the subsidiary had accumulated losses of £8,314 relating to a corporation tax charge (2023: £nil) and called up share capital of £1 (2023: £1).

11
Tangible fixed assets
GROUP AND CHARITY Furniture,
equipment
Freehold
Major
and
land and
building
Assets
motor
buildings
refurbishment
Under
vehicles
Total
£'000
£'000
Construction
£'000
£'000
At cost or deemed cost
At 1 April 2023 16,039
2,790
-
3,299
22,128
Additions -
62
1,235
381
1,678
Disposals -
-
-		 (129) (129)
At 31 March 2024 16,039
2,852
1,235
3,551
23,677
Depreciation
At 1 April 2023 2,539
1,642
-
1,925
6,106
Charge for the year 231
259
-
376
866
Disposals -
-
-		 (129) (129)
At 31 March 2024 2,770
1,901
-
2,172
6,843
Net book value
At 31 March 2024 13,269
951
1,235
1,379
16,834
At 31 March 2023 13,500
1,148
-
1,374
16,022

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.

Capital Commitments

At year-end the Group and Charity had one capital commitment of £531k (2022/23 – £64k) relating to the completion of St Michael’s Ward refurbishment.

45

12. Investments

12. Investments
GROUP AND CHARITY Investment
property
£'000		 Listed
Investments
£'000		 2024 2023
Total Total
£'000 £'000
Market value at 1 April 2023 6,195
-
-		 16,517
-
(1,871)		 22,712 22,362
Acquisitions - 750
(1,871) -
Unrealised gains/losses 2,512 1,330 3,842 (400)
At 31 March 2024 8,707 15,976 24,683 22,712
Cost of investments at 31 March 2024 1,599 11,138 12,737 14,141

Investment property comprises of:

The Hospice has no intention of disposing of its investment properties and is a long-term investor.

Listed investments held at 31 March 2024 are as follows:

2024
2023
£'000
£'000		 2024
2023
£'000
£'000		 2024
2023
£'000
£'000		 2024
2023
£'000
£'000
UK common investment funds 15,976
16,517

At 31 March 2024, the Charity’s investments comprised holdings in COIF and CAIF Charities Investment Funds. Both are managed by CCLA.

In addition to the above, the charity owns the entire issued share capital of £1 in Five Sisters Managed Services Ltd (note 10).

46

13. Debtors

13. Debtors Debtors Debtors Debtors Debtors
GROUP CHARITY
2024 2023 2024 2023
£'000 £'000 £'000 £'000
Revenue grants and fees receivable 0
-
2,891
1,205
108
118
305
257
248
185
-
0
279
256		 -
-
Legacies receivable 2,891
1,205
108
118
305
257
248
185
36
24
247
192
Investment income and interest
receivable
VAT recoverable
Prepayments
Subsidiary
Other debtors 279
3,831 2,021 3,835 1,981
14 Creditors: amounts falling due within one year
GROUP CHARITY
2024 2023 2024 2023
£'000 £'000 £'000 £'000
1,121
242
125
372
98
-
92
Expense creditors
Capital Creditors
Social security and other taxes
Accruals for capital works
Other accruals
Deferred income
Corporation Tax
Other creditors		 759
794
367
243
237
125
-
377
408
98
595
8
-
104
40		 730
237
-
408
595
-
40
2,081 2,074 2,050 2,010

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

GROUP & ChARITY
CHARITY
2024 2023
Deferred income £'000 £'000
Balance as at 1 April 2023 595
610
32
57
(529)
(72)
Income deferred in the year
Income released in theyear
Balance as at 31 March 2024 98
595

47

15 Restricted Funds

15 Restricted Funds Restricted Funds Restricted Funds Restricted Funds Restricted Funds Restricted Funds Restricted Funds
Mission
fund
Restricted
funds
2024
Mission fund		 Restricted
funds		 2023
£'000
£'000
£'000
£'000		 £'000 £'000
At 1 April 2023
1,875
520
2,395
1,919		 518 2,437
Income
58
778
836
55		 425 480
Expenditure
0
(226)
(226)
0		 (400) (400)
Gains/losses on listed investment
153
(0)
153
(75)		 (0) (75)
Transfers
(28)
(902)
(930)
(24)		 (23) (47)
At 31 March 2024
2,058
170
2,228		 1,875 520 2,395

The income funds of the Group and Charity include restricted funds comprising the donations and grants held on trusts to be applied for specific purposes.

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.

16 Designated Funds

16
Designated Funds		 16
Designated Funds		 16
Designated Funds
Group and Charity At 1 April
2023		 New
Designations		 At 31
March
2024
£'000 £'000 Utilised £'000
Patient Admin Software Fund - 1,000 - 1,000
Repairs & Maintenance Fund - 500 - 500
Development Fund - 1,500 - 1,500
R&D & Education Fund - 500 - 500
Data & Information Fund - 500 - 500
Legacies Fund - 1,200 - 1,200
At 31 March 2024 - 5,200 - 5,200

Patient Admin Software Fund is a specific fund for replacing our patient administration system, which is due to become obsolete at the end of 2025.

St Joseph’s has a large estate and we recognise the value to our patients, relatives, staff and the wider community of continue to invest in this estate.

The Repairs and Maintenance Fund recognises that occasionally we have major unplanned works and setting aside money to fund this ensures a funding stream over the next three years.

48

Development Fund . This is a fund to focus on projects which will expand St Joseph’s charitable impact as a centre of excellence in Palliative Care and is a five-year project.

The R&D and Education Fund will be used to pump prime new developments over the next three years and to grow our income. It will enable us to be part of more funded projects and it is our aim to be the ‘go to Hospice’ for future R&D projects and Education.

The Data & Information Fund recognises our ambition to support our understanding of everything we do through the smart use of data and evidence. This fund will be used to demonstrate the value of St Joseph’s to East London and to protect and grow our income streams by making a clear and compelling story. The project has started and is due to last five years.

Legacies Fund . Legacies income is a key income source for the charity and the volatility of this income stream can have a large impact on whether or not the charity is able to meet a balanced budget in any given year. The Trustees therefore decided to establish a fund to provide a buffer against this volatility. The fund value was initially established at £1m and it is the intention that funds shall be released to general funds if there are significant shortfalls in legacy income in any particular year. Correspondingly, the fund may be topped back up to £1m if legacy income raised significantly exceeds expectations. The aim of utilising this fund in such a way is to maintain the long-term financial sustainability of the charity, allowing us to continue to focus on our excellent clinical care.

17 Tangible fixed assets fund

17 Tangible fixed assets fund
GROUP and CHARITY 2024 2023
£'000 £'000
At 1 April 2023 16,022 16,188
642
(808)
Capital Purchases 1,678
Depreciation Charge for Year (866)
At 31 March 2024 **16,834 ** 16,022
18. Investment property fund Investment property fund Investment property fund Investment property fund Investment property fund Investment property fund Investment property fund Investment property fund Investment property fund
GROUP and CHARITY 2024 2023
£'000 £'000
At 1 April 2023 6,195
5,915
2,512
280
Net movement in the year
At 31 March 2024 8,707 6,195

==> picture [106 x 40] intentionally omitted <==

49

19. Analysis of net assets between funds -

GROUP

GROUP

Designated
fixed assets
Property
Restricted
Total
~~Tangible~~
~~Investment~~
General
funds Funds
fund
fund
funds
2024
£'000 £'000
£'000
£'000
£'000
Fund balances at 31 March 2024 are represented by
Tangible fixed assets - -
16,834
-
-
16,834
Investments 8,820 5,200
-
8,707
1,956
24,683
Current assets 5,000 -
-
-
272
5,272
Creditors: amounts falling due within one year (2,081) -
-
-
-
(2,081)
Total net assets 11,739 5,200
16,834
8,707
2,228
44,708
Accumulated unrealised gains included above
consists of:
.On listed investments 4,341 -
-
497
4,838
.On investment properties - -
7,108
-
7,108
4,341 -
7,108
497
11,946
Reconciliation of movements in unrealised
gains on investments
Unrealised gains at 1 April 2023 3,560 -
4,596
416
8,572
Less: brought forward unrealised gains realised
in the year		 (396) -
-
(72)
(468)
Add Net unrealised gains in the year 1,177 -
2,512
153
3,842
Unrealised gains at 31 March 2024 4,341 -
7,108
497
11,946

==> picture [116 x 33] intentionally omitted <==

19. Analysis of net assets between funds - Hospice

Charity

19. Analysis of net assets between funds- Hospice Analysis of net assets between funds- Hospice Analysis of net assets between funds- Hospice Analysis of net assets between funds- Hospice Analysis of net assets between funds- Hospice Analysis of net assets between funds- Hospice
Charity
Tangible
Investment
General Designated
fixed
assets
Property		 Restricted Total
funds Funds
fund
fund		 funds 2024
£'000 £'000
£'000		 £'000 £'000
Fund balances at 31 March 2024 are represented by
Tangible fixed assets - -
16,834
-		 - 16,834
Investments 8,820 5,200
-
8,707		 1,956 24,683
Current assets 4,977 -
-
-		 272 5,249
Creditors: amounts falling due within one
year		 (2,050) -
-
-		 - (2,050)
Total net assets 11,747 5,200
16,834
8,707		 2,228 44,716
Accumulated unrealised gains included
above consists of:
.On listed investments 4,341 -
-
-		 497 4,838
.On investment properties -
-
7,108		 - 7,108
4,341 -
-
7,108		 497 11,946
Reconciliation of movements in
unrealised gains on investments
Unrealised gains at 1 April 2023 3,560 -
-
4,596		 416 8,572
Less: brought forward unrealised gains
realised in the year		 (396) -
-
-		 (72) (468)
Add Net unrealised gains in the year 1,177 -
-
2,512		 153 3,842
Unrealised gains at 31 March 2024 4,341 -
-
7,108		 497 11,946

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20. 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 NHS 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 20. Pension costs of the contributory levels are as follows:

Proportion of members’ accrued benefits covered by the actuarial value
of the assets
The employer’s contribution rate
Latest actuarial valuation
Actuarial method
Discount rate (real rate)
Discount rate (nominal rate)
Pension increases
Long term salary growth
Value of assets at date of last valuation
Value of liabilities at date of last valuation		 Latest actuarial valuation
Actuarial method
Discount rate (real rate)
Discount rate (nominal rate)
Pension increases
Long term salary growth
Value of assets at date of last valuation
Value of liabilities at date of last valuation
23.7%
31 March
2020
Prospective
benefits
1.7%
1.8%
4.1%
2.5%
Nil
£653.2 billion

Contributions paid to the Scheme during the year amounted to £559,383 (2023 – £568,018), of which £240,927 (2023 – £260,661) was employees’ contributions.

Royal London Pension Scheme

This is a defined contribution scheme where employees can choose their level of contribution. From April 2024 the Hospice moved from Royal London Pension Scheme to Standard Life Pension Scheme.

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21. 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 had a trustee in common until 16 November 2023 . 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 (2023 – nil).

There were no other related party transactions during the year (2023 – none).

22. 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.

23. Operating lease commitments

At 31 March 2024, the Hospice had the following future commitments under noncancellable operating leases, relating to items of equipment; and a five-year lease on a shop ends in May 2024.


p ends in May 2024.
2024
2023
£'000
£'000
Operating leases payments due: within one year
. Within one to two years
Within two to five years		 51
33
91
11
160
11
302 55

24. Post Year-End Events

There have been no post year-end events to report.

52