**Sobell House Hospice Charity Limited (limited by guarantee)**
**Registered Charity No: 1118646 Registered Company No: 05989017**
**Consolidated Accounts for the year ended 31st March 2023**
**Wenn Townsend** Chartered Accountants
**Oxford**
Sobell House Hospice Charity Ltd. Registered Charity No. 1118646. Company No. 5989017. Registered in England and Wales. Registered Office: 30 St Giles, Oxford OX1 3LE. **www.sobellhouse.org**
**Sobell House Hospice Charity Limited**
**Reference and administrative details**
|**Registered Office:**|30 St Giles|
|---|---|
||Oxford|
||OX1 3LE|
|**Principal Office:**|Sobell House|
||Churchill Hospital|
||Headington|
||Oxford|
||OX3 7LE|
|**Bankers:**|Barclays Bank plc|
||Oxford City Centre Branch|
||Oxford|
||OX1 3HB|
|**Solicitors:**|Blake Morgan LLP|
||Seacourt Tower|
||West Way|
||Oxford|
||OX2 0FB|
||BWH Legal|
||Ashbrook House|
||Westbrook Street|
||Blewbury|
||Didcot|
||Oxfordshire|
||OX11 9QA|
|**Auditors:**|Wenn Townsend|
||Chartered Accountants and Registered Auditors|
||30 St Giles|
||Oxford|
||OX1 3LE|
|**Investment Advisers:**|Quilter Cheviot Limited|
||1 Kingsway|
||London|
||WC2B 6AN|
**- 1 -**
## **Sobell House Hospice Charity Limited**
## **Trustees' Annual Report for the year ended 31st March 2023**
**Foreword**
The Trustees, who act as directors for the purposes of company law, of Sobell House Hospice Charity Limited (the Charity) present their annual report together with the audited financial statements for the Charity and its two subsidiary companies. The trustees have adopted the provisions of the Statement of Recommended Practice (SORP) “Accounting and Reporting by Charities” in preparing the annual report and financial statements of the Charity and the Group.
## **The Trustees and officers of the Charity**
The names of the members of this body who acted during the year ended 31st March 2023 together with changes subsequent to that date are as follows:
||Finance
Committee|Trading
Advisory
Committee|Investment
Committee|Remuneration
Committee|Fundraising and
Communications
Committee|
|---|---|---|---|---|---|
|Mr I Miles (Chairman)|x||x|x||
|Mr P Holloran(Treasurer)|x||x|x||
|MrsVSpurge|x||||x|
|Dr WCouldrick|x|||||
|Mr H Fraser||x|||x|
|MrsM Hodgson(resigned 30/06/23)||||||
|Mrs SNash|x|x|||x|
|Ms JFindley||||||
|MrGBirdseye|||||x|
|MrGVarney (resigned 04/07/23)||||x||
|MsA Foster(CEO)|x|x|x|x|x|
|Dr RStarer(resigned 07/12/22)||||||
## **Objectives and activities for the public benefit**
The key element of the Charity’s medium to long-term strategy is to provide on-going funding to Sir Michael Sobell House (The Hospice). The Hospice is an NHS hospice which has been providing care since 1976 for people in Oxfordshire with life-limiting illnesses. The Charity has provided financial support from the outset. The Hospice building is leased by the Charity to the NHS.
In the year ending 31st March 2023, the Charity provided ongoing funding to the Hospice totalling £1,341,653 (last year £840,405). This funding provided additional services to augment those offered by the Hospice and includes transport, catering, pastoral support and staff training.
The Charity measures the success of its strategy in two ways: **Within the Hospice:** the grant from the Charity allows the Hospice to provide a broader range of services and higher level of care to a greater number of people in Oxfordshire than would otherwise be possible using only the NHS provision for this type of service.
**Within the Charity:** fundraising results are measured against the previous year while being compared to external benchmarks and the budgets determined by the Charity staff and agreed with Trustees. The Trustees also closely monitor the performance of the investment portfolio and obtain advice from their broker relating to investment matters.
**- 2 -**
## **Sobell House Hospice Charity Limited**
## **Trustees’ Annual Report (continued)**
## **for the year ended 31st March 2023**
## **Objectives and activities for the public benefit (continued)**
## **Voluntary help**
Sobell House Hospice Charity Limited upholds the important principle that the Hospice is a community-owned organisation. There are a range of fundraising activities held in partnership with local people, such as organising events, operating seven Charity Shops, two warehouses and the Sobell Lottery through the Local Hospice Lottery. The generous support of our volunteers, with all of these activities and office administration, enables the Charity to continue to support the Hospice at its current level and agree to increase support for innovation in palliative and end of life care.
The Trustees wish to thank the volunteers for all their contributions and acknowledge that without their support, the Charity would not be able to provide the support for the Hospice, let alone undertake other possible areas for support to those with life limiting illnesses.
## **Fundraising standards information**
Members of the Charity’s fundraising department organise events and carry out fundraising activities in order to generate funds for the charity. The Charity does not use professional fundraisers but does work with Local Hospice Lottery as a commercial participator to carry out its Lottery under a formal agreement. There have been no complaints about fundraising activity this year. The charity has signed up to the Fundraising Regulator’s Code of Fundraising Practice.
All the charity’s marketing activities are undertaken directly to ensure that it is not unreasonably persistent or intrusive. Direct marketing materials contain clear details of how to unsubscribe to future communications and care is taken to limit the level of communications being sent out.
## **Public benefit statement**
The Trustees have complied with their duty to have due regard to the guidance on public benefit published by the Charity Commission in exercising their powers and duties.
## **Achievements and performance**
With the Charity’s support, the Hospice has extended help to the following number of patients over the last three years:
||**2022/23**|**2021/22**|**2020/21**|**2019/20**|
|---|---|---|---|---|
|Total home visits|2,652|2,340|3,045|4,811|
|Medical outpatients|167|108|186|407|
|Lymphoedema|2,270|1,782|2,345|2,016|
|Dayservice attendances|310|32|30|1,278|
|Telemed|5,366|6,868|7,511|2,939|
|Total Hospice bed days|6,150|4,885|5,824|5,781|
|Hospital specialist team # ofpatients|2,206|2,344|1,859|1,837|
|Bereavement # ofpeople supported|230*|164|152|230|
|Referrals accepted onto Home Hospice|565||||
* Due to changes in the way bereavement appointment data is now collected, the number for 22-23 is more difficult to disaggregate from that of our sister charity (Katharine House Hospice). This will be rectified in 23-24, and is an estimate therefore for 22-23 in the meantime.
While caring for such significant numbers of people, the Hospice maintains the ethos that the individual is of primary importance. The Hospice is not a place dominated by illness, but a place where people overcome pain and fear, and to make the very most of the time they have. The service is completely free to those in our community who may need it, regardless of their beliefs, race, age, sex or sexual orientation.
The Charity granted £1,341,653 (£840,405 in 2021-22) in the year ended 31 March 2023 to fund a broad range of services and activities provided in the Hospice by the NHS. The Charity continues to fund a multi-disciplinary team to provide palliative care throughout the hospitals and the OUH NHSFT. The cost of this project this year included in designated funds was £81,156 (£53,312 in 2021-22).
**- 3 -**
## **Sobell House Hospice Charity Limited**
## **Trustees’ Annual Report (continued) for the year ended 31st March 2023**
## **Achievements and performance (continued)**
A further £132,910 (£128,228 in 2021-2022) was used to fund the catering service within the Hospice and £38,240 (£34,716 in 2021-22) funded the transport service. The Charity continues to fund the bereavement service at a cost of £119,571 in the year ended 31st March 2023 (£110,702 in 2021-22). The Trustees have agreed to continue to fund this service.
## **Financial review**
The income from general donations and events increased by £26,841 from £946,972 in 2022 to £973,813 in 2023. In addition, significant specific fund support was received in the year, predominantly towards the RIPEL project. The Trustees are very grateful to all those who support the Hospice with gifts and legacies.
Income from legacies increased from £436,035 in 2022 to £1,350,592 in 2023. Legacy income streams are by their nature uncertain. However, they allow the charity to consider the funding of additional and developmental projects for the benefit of the Hospice service. It is the significant legacy income that has enabled the Trustees to consider the projects described in this report.
Trading income from the shops increased from £1,489,649 in 2022 to £1,756,696 in 2023; this is due to a full year’s trading and supportive pay and conditions for staff enabling collaborative working to maximise sales and stock rotation. The charity continues to review its trading activity and trading structure and has taken the decision to close the Didcot shop which has returned a loss even after staff and layout restructuring. The collaboration with the Local Hospice Lottery, a consortium carrying on a lottery on behalf of hospices throughout the United Kingdom, is continuing.
## **Investment policy and powers**
The Trustees are empowered by their Constitution to invest all funds not required for immediate application in any lawful manner at their discretion, and for this purpose to delegate the management of the investments to our professional investment managers, Quilter Cheviot Limited.
The investment objective, as agreed by the Trustees, is to achieve sufficient capital and income growth, which over the long term will maintain the real value of the assets. The Trustees continue to review their Investment Policy which holds separate portfolios for the Investment and Reserves Funds. On completion of the building project, the funds were rebalanced to reflect the level of reserves the Trustees felt were necessary to protect the Charity’s ongoing commitments. There are no specific restrictions on investments other than that they should be suitable for the Charity though in year the Charity divested itself of any Russian holdings due to the war in Ukraine. In addition, £1,000,000 in cash was drawn down from our investments and put into a CAF/Flagstone cash investment portal to support the Charity’s increased need for cash due to the commitment to fund the RIPEL project and to take advantage of rising interest rates.
## **Reserves policy**
The level of free reserves for the Group at the 31 March 2023 was approximately £3.3 million. This includes a £1.8 million gain shown on the revaluation reserve, representing stock market unrealised gains as at 31 March 2023.
Grants totalling £2.2 million were made to the Hospice and related services this year (last year £1.1 million). The cost of generating those funds, together with support costs (but excluding trading costs) amounted to £717,656 this year (last year £611,657). Future grants are estimated for the year ending 31st March 2024 at £3.0 million, with the costs of fundraising and support being estimated at £1.04 million.
The Trustees consider that the appropriate level of free reserves is equivalent to 12 months of budgeted running costs, with a designated fund covering a reasonable period of budgeted grant costs. At 31st March 2023 the estimate of running costs for the next year is £2.9m. The Charity currently holds approximately 14 months of free reserves on this basis. As a result of this strong financial position, the Trustees have approved a deficit budget for the year ending 31st March 2024 to continue to allow for investment in our retail and fundraising operations, and to continue to support the second year of the project with OUH NHSFT that is increasing end of life care services across Oxfordshire.
**- 4 -**
## **Sobell House Hospice Charity Limited**
## **Trustees’ Annual Report (continued) for the year ended 31st March 2023**
## **Plans for future periods**
On 1st April 2022, a new project – Rapid Intervention in Palliative and End of Life Care (RIPEL) – was launched in Oxfordshire and South Northamptonshire, co-funded by Sobell House Hospice Charity and Macmillan Cancer Care (through a social impact bond supported by Social Finance). In 2021-22, the Trustees entered into a grant agreement with OUH NHSFT to provide £3.1 million of funding over three years (with a further £900k potentially available at the end of the project) to support this project. This is a significant investment in changing the landscape for the increasing number of people in Oxfordshire experiencing life-limiting illnesses and helps move our service forward in reaching all in our community who need us. The first year was very successful – more on this below – and the next two years form an important part of our plans going forwards.
The first phase of RIPEL was a Home Hospice Care Team that supports those who wish to die at home, and their loved ones, to enable that to happen. In the first 12 months 645 referrals were accepted. A RIPEL patient spends on average 10.9 days in service, each of which would otherwise have been in hospital. In October 2022, the Hospital Rapid Response service was launched which supports those who are identified as actively dying to go home to die, if that is their wish. The final part of the project is an extension of the operating hours of our community hub, providing specialist phone and in-person support to palliative and end of life patients in the community, enabling us to respond in a timely manner to crises.
For 2024, Sobell House Hospice Charity has contracted Wild in Art – the leading company specialising in fundraising sculpture trails – to support us in developing a sculpture trail of life-sized oxen across Oxford in July and August 2024. This will involve significant fundraising activities, including corporate sponsorship, partnerships with the County and City Councils and other large organisations and will give the Charity the opportunity to raise significant funds, build new partnerships with organisations for the longer term, and raise awareness of the hospice and its services.
Alongside our existing fundraising activities, this will involve a significant amount of work and require additional staff members to support it while maintaining our current fundraising activities. In addition, we are planning new fundraising events such as a Lego walk, in conjunction with SeeSaw (Oxfordshire’s child bereavement charity), and a Sunset Stroll in the early Autumn.
In retail, we are redeveloping one of our warehouses to support increased capacity to take and rotate donations, as well as building a reference template for future shop developments. In addition, we are investing in our personnel infrastructure to support planned expansion into new retail premises in 2024-25 and beyond.
## **Structure, governance and management**
The Charitable Company is governed by its Memorandum and Articles of Association which were adopted on incorporation on 6 November 2006. It is registered as a charity with the Charity Commission. The liability of members in the event of a winding up is limited by guarantee to an amount not exceeding £1 per member. At the balance sheet date there were ten members.
The Board of Trustees, when complete, comprises a Chairman, Treasurer and Secretary plus a Vice Chairman and up to eight other members elected at the Annual General Meeting (AGM). One-third of the Trustees retire at each AGM, though retiring Trustees are eligible for re-election. The Trustees can fill any casual vacancy in their number, and may co-opt not more than three additional Trustees, any person so appointed being entitled to hold office until the next AGM.
The Board of Trustees meets four times a year and there are also four sub-committees; the Finance Committee, an Advisory Shops Committee, a Fundraising and Communications Committee, and a Remuneration Committee, which also meet four times a year or as often as is required. All policy and strategy decisions are formally tabled for approval at the Trustees’ quarterly meetings. Decisions concerning the day-to-day running of the Charity are delegated to the Chief Executive Officer and the team of office staff who work under the direction of the Chief Executive.
Trustees are selected, as required, to fill particular skill requirements on the Board of Trustees. Prospective Trustees are invited to make a series of introductory visits to the Hospice and Charity offices prior to being formally elected as Trustees. Prior to the appointment of Honorary officers, meetings are arranged with the Chief Executive and relevant staff.
**- 5 -**
## **Sobell House Hospice Charity Limited**
## **Trustees’ Annual Report (continued) for the year ended 31st March 2023**
## **Key Management Personnel Remuneration**
The Trustees consider the Board of Trustees, the Chief Executive and the senior leadership team as comprising the key management personnel of the charity in charge of directing and controlling the charity and running and operating the charity on a day-to-day basis. All Trustees give of their time freely and no Trustee remuneration was paid in the year. Details of Trustee expenses and related party transactions are disclosed in note 4 to the accounts.
Trustees are required to disclose all relevant interests and in accordance with the Trust’s policy withdraw from decisions where a conflict of interest arises.
The pay of the Chief Executive and senior leadership team is reviewed annually and is normally increased in accordance with average earnings. The remuneration is reviewed to ensure that it is commensurate with similar roles.
## **Related parties**
The Charity has two subsidiary companies.
Sobell Lottery Limited was incorporated on 22nd March 1999 as a wholly owned subsidiary.
Sobell House Hospice Company Limited ceased to be a dormant company on 1st July 2003 and began to trade in bought in goods. The company is limited by guarantee and is a wholly owned subsidiary of the Charity.
Sobell House Hospice Company Limited donates its taxable profits to the Charity each year by Gift Aid. Sobell Lottery Limited remains in use as a party to the agreement with Local Hospice Lottery Limited. LHL donate the lottery proceeds due directly to the Charity.
## **Risk management**
The Trustees continue to review the financial risks facing the Charity with a view to mitigating these.
The principal risks and uncertainties faced by the charity are to ensure that continuity of funding is maintained, particularly in the light of the current cost of living crisis caused by rising inflation, and the rise in the energy price cap.
The Trustees are monitoring cash flow and the senior leadership team are in regular contact with our Investment advisors to ensure that a secure cash flow is maintained.
## **Trustees’ responsibilities in relation to the financial statements**
The Trustees (who are also directors of Sobell House Hospice Charity Limited for the purposes of company law) are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the Trustees to prepare the financial statements for each financial year, which give a true and fair view of the state of affairs of the Charitable Company and of the incoming resources and application of resources, including the income and expenditure, of the Charitable Company for the year. In preparing these financial statements, the Trustees are required to:
- Select suitable accounting policies and then apply them consistently;
- Observe the methods and principles in the Charities SORP 2019 (FRS 102);
- Make judgements and estimates that are reasonable and prudent;
- State whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
- Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Charity and the group will continue in operation.
**- 6 -**
## **Sobell House Hospice Charity Limited**
## **Trustees’ Annual Report (continued) For the year ended 31st March 2023**
## **Trustees’ responsibilities in relation to the financial statements (continued)**
The Trustees are responsible for keeping adequate accounting records, which disclose with reasonable accuracy at any time the financial position of the charitable company and enables them to ensure that the financial statements comply with the Companies Act 2006. The Trustees are also responsible for safeguarding the assets of the charitable company and hence for taking any reasonable steps for the prevention and detection of fraud and other irregularities.
In so far as the Trustees are aware:
- there is no relevant audit information of which the charitable company’s auditors are unaware; and
- the Trustees have taken all the steps that they ought to have taken in order to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information.
The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
This report has been prepared having taken advantage of the small companies’ exemption in the Companies Act 2006.
## **By order of the Trustees**
**Mr I Miles Chair of Trustees** 25th July 2023
**- 7 -**
**Sobell House Hospice Charity Limited**
## **Independent Auditor’s Report to the Members and Trustees of Sobell House Hospice Charity Limited**
## **Opinion**
We have audited the financial statements of Sobell House Hospice Charity Limited (the ‘parent charitable company’) and its subsidiaries (the ‘group’) for the year ended 31st March 2023 which comprise the Consolidated Statement of Financial Activities, the Group and Charity Balance Sheets, the Consolidated Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 _The Financial Reporting Standard applicable in the UK and Republic of Ireland_ (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
- give a true and fair view of the state of the group’s and parent charitable company’s affairs as at 31st March 2023, and of the group’s incoming resources and application of resources, including its income and expenditure, for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Companies Act 2006 and the Charities Act 2011.
## **Basis for opinion**
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## **Conclusions relating to going concern**
In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the 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 trustees’ annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
## **Opinions on other matters prescribed by the Companies Act 2006**
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the trustees’ report (incorporating the directors’ report) for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the directors’ report has been prepared in accordance with applicable legal requirements.
## **Matters on which we are required to report by exception**
In the light of our knowledge and understanding of the group and parent charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the directors’ report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 and the Charities Act 2011 requires us to report to you if, in our opinion:
- adequate and sufficient accounting records have not been kept by the parent charitable company, or returns adequate for our audit have not been received from branches not visited by us; or
- the parent charitable company’s financial statements are not in agreement with the accounting records and returns; or
- • certain disclosures of directors’ remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit; or
- the trustees were not entitled to prepare the financial statements in accordance with the small companies’ regime and take advantage of the small companies’ exemptions in preparing the directors’ report and from the requirement to prepare a strategic report.
**- 8 -**
## **Sobell House Hospice Charity Limited**
## **Independent Auditor’s Report to the Members and Trustees of Sobell House Hospice Charity Limited (continued)**
## **Responsibilities of trustees**
As explained more fully in the trustees’ responsibilities statement set out on pages 6 and 7, 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 parent charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the group or the parent charitable company or to cease operations, or have no realistic alternative but to do so.
## **Auditor’s responsibilities for the audit of the financial statements**
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud is detailed below:
- Enquiry of management, those charged with governance and the entity’s solicitors around actual and potential litigation and claims;
- Enquiry of entity staff in tax and compliance functions to identify any instances of non-compliance with laws and regulations; • Reviewing minutes of meetings of those charged with governance;
- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
- Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
## **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 and to the charitable company’s trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charitable company’s members and its trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body and the charitable company’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.
**Benjamin Hayes FCA (Senior Statutory Auditor) For and on behalf of Wenn Townsend Chartered Accountants and Statutory Auditor 30 St Giles Oxford OX1 3LE**
**25th July 2023**
**- 9 -**
## **Sobell House Hospice Charity Limited**
## **Consolidated Statement of Financial Activities (including income and expenditure account) for the year ended 31st March 2023**
|
**Restricted**
**General**
**Designated**
**Total**
**Note**
**Funds**
**Funds**
**Funds**
**2023**
**£**
**£**
**£**
**£**
**Income from:**
_Voluntary income:_
General donations and events
423,244
973,813
-
1,397,057
Legacies
-
1,350,592
-
1,350,592
_Activities for generating funds:_
Shops - sales of goods
-
1,756,696
-
1,756,696
Income from lottery
-
228,897
-
228,897
_Investment income:_
Bank interest
-
20,811
-
20,811
Quoted investment income
-
141,700
-
141,700
**Total income**
423,244
4,472,509
-
4,895,753
**Expenditure on:**
**Raising funds:**
Fundraising and publicity
-
486,213
-
486,213
Shops - cost of sales
-
1,314,472
-
1,314,472
Office costs
-
231,443
-
231,443
**2**
-
2,032,128
-
2,032,128
**Charitable activities:**
Grants to Sobell House
90,811
1,117,387
133,456
1,341,654
RIPEL project costs
394,832
-
217,479
612,311
Donation to SeeSaw
-
30,000
-
30,000
Hospice depreciation
82,717
-
210,368
293,085
Catering service
-
132,910
-
132,910
Transport service
-
38,240
-
38,240
Bereavement Service
-
119,571
-
119,571
Office costs
-
231,443
-
231,443
**2**
568,360
1,669,551
561,303
2,799,214
**Total expenditure**
568,360
3,701,679
561,303
4,831,342|**Restricted**
**General**
**Designated**
**Total**
**Funds**
**Funds**
**Funds**
**2022**
**£**
**£**
**£**
**£**
30,261
946,972
-
977,233
-
436,035
-
436,035
-
1,489,649
-
1,489,649
-
222,891
-
222,891
-
22
-
22
-
211,601
-
211,601
30,261
3,307,170
-
3,337,431
-
401,123
-
401,123
-
1,200,502
-
1,200,502
-
210,534
-
210,534
-
1,812,159
-
1,812,159
34,702
745,592
60,111
840,405
-
-
-
-
-
36,000
-
36,000
86,792
-
206,293
293,085
-
128,228
-
128,228
-
34,716
-
34,716
-
110,702
-
110,702
-
210,534
-
210,534
121,494
1,265,772
266,404
1,653,670
121,494
3,077,931
266,404
3,465,829|
|---|---|
**- 10 -**
## **Sobell House Hospice Charity Limited**
## **Consolidated Statement of Financial Activities (including income and expenditure account) for the year ended 31st March 2023 (continued)**
|**Note**
**Net income/(expenditure) before gains/(losses)**
**on investments**
Realised gains/(losses)
on investment assets
**7**
Unrealised gains/(losses)
on investment assets
**7**
**Net income**
Transfers between funds
**12**
**Net movement in funds**
Fund balances brought forward
at 1st April 2022
**Fund balances carried forward**
**at 31st March 2023**|**Restricted**
**General**
**Designated**
**Total**
**Funds**
**Funds**
**Funds**
**2023**
**£**
**£**
**£**
**£**
(145,116)
770,830
(561,303)
64,411
-
(186,157)
-
(186,157)
-
(701,541)
-
(701,541)
(145,116)
(116,868)
(561,303)
(823,287)
-
(2,967,638)
2,967,638
-
(145,116) (3,084,506)
2,406,335
(823,287)
1,502,352
6,586,856
10,793,968 18,883,176
1,357,236
3,502,350
13,200,303 18,059,889|**Restricted**
**General**
**Designated**
**Total**
**Funds**
**Funds**
**Funds**
**2022**
**£**
**£**
**£**
**£**
(91,233)
229,239
(266,404)
(128,398)
-
(43,757)
-
(43,757)
-
644,949
-
644,949
(91,233)
830,431
(266,404)
472,794
-
41,000
(41,000)
-
(91,233)
871,431
(307,404)
472,794
1,593,585
5,715,425 11,101,372 18,410,382
1,502,352
6,586,856 10,793,968 18,883,176|
|---|---|---|
All income and expenditure derive from continuing activities.
The statement of financial activities includes all gains and losses recognised during the year.
**- 11 -**
## **Sobell House Hospice Charity Limited**
## **Balance Sheet As at 31st March 2023**
|**Group**
**Charity**
**Note**
**2023**
**2023**
**£**
**£**
**Fixed assets**
Tangible assets
**6**
5,957,907
5,957,907
Investments
**7**
9,561,445
9,561,447
15,519,352
15,519,354
**Current assets**
Stock
19,689
-
Debtors
**8**
1,383,695
1,383,148
Short term deposits
1,148,658
1,148,658
Cash at bank and in hand
702,015
697,152
3,254,057
3,228,958
**Creditors:**Amounts falling due
within one year
**9**
(713,520)
(712,588)
**Net current assets**
2,540,537
2,516,370
**Net assets**
18,059,889
18,035,724
**Funds:**
**Unrestricted funds**
General funds
1,646,068
1,646,068
Revaluation reserve
**11**
1,832,117
1,832,117
Designated funds
**12**
13,200,303
13,200,303
16,678,488
16,678,488
**Restricted funds**
**12**
1,357,236
1,357,236
**Non-charitable trading funds**
**14**
24,165
-
**Total funds**
18,059,889
18,035,724|**Group**
**Charity**
**2022**
**2022**
**£**
**£**
6,302,912
6,302,912
10,666,232
10,666,234
16,969,144
16,969,146
8,107
-
538,159
534,960
495,250
495,250
1,287,358
1,282,441
2,328,874
2,312,651
(414,842)
(428,158)
1,914,032
1,884,493
18,883,176
18,853,639
3,344,879
3,344,879
3,212,440
3,212,440
10,793,968
10,793,968
17,351,287
17,351,287
1,502,352
1,502,352
29,537
-
18,883,176
18,853,639|
|---|---|
The financial statements have been prepared in accordance with the special provisions of part 15 of the Companies Act 2006 relating to small companies.
The financial statements were approved by the Trustees on 25th July 2023 and signed on their behalf by:
## **Mr I Miles Chair of Trustees**
## **The notes on pages 14 to 27 form part of the financial statements**
## **Registered Company No: 05989017**
**- 12 -**
## **Sobell House Hospice Charity Limited**
## **Consolidated Statement of Cash Flows for the year ended 31st March 2023**
||**Note**|**2023**|**2022**|
|---|---|---|---|
|||**£**|**£**|
|**Net cash flow from operating activities**|**13**|(296,576)|(84,248)|
|||───────|───────|
|**Cash flow from investing activities**||||
|Payments to acquire tangible fixed assets||(14,959)|(56,255)|
|Payments to acquire investments||(2,042,289)|(520,542)|
|Receipts from sales of investments||2,259,378|1,374,358|
|Interest received||20,811|22|
|Dividends received||141,700|211,601|
|||───────|───────|
|**Net cash flow from investing activities**||364,641|1,009,184|
|||───────|───────|
|**Net increase in cash and cash equivalents**||68,065|924,936|
|**Cash and cash equivalents at 1st April 2022**||1,782,608|857,672|
|||───────|───────|
|**Cash and cash equivalents at 31st March 2023**||1,850,673|1,782,608|
|||═══════|═══════|
|**Cash and cash equivalents consists of:**||||
|Cash at bank and in hand||702,015|1,287,358|
|Short term deposits||1,148,658|495,250|
|||───────|───────|
|**Cash and cash equivalents at 31st March 2023**||1,850,673|1,782,608|
|||═══════|═══════|
**- 13 -**
**Sobell House Hospice Charity Limited**
## **Notes to the Accounts**
## **for the year ended 31st March 2023**
## **1. Accounting policies**
The following accounting policies have been used consistently in dealing with items which are considered to be material in relation to the Charity's and the Group’s accounts.
**(a) General information and basis of preparation** Sobell House Hospice Charity Limited is a charitable company limited by guarantee in the United Kingdom. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity. The address of the registered office is given in the charity information on page 1 of these financial statements. The nature of the charity’s operations and principal activities are noted in the Trustees Report.
These accounts have been prepared on an accruals basis and include income and expenditure as they are earned or incurred, rather than as cash is received or paid. The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011, and UK Generally Accepted Accounting Practice.
Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note. The financial statements are prepared in sterling which is the functional currency of the charity.
The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.
**(b) Fund accounting** Unrestricted funds consist of a general fund which the Trustees may use, for the furtherance of the objects of the Charity, at their discretion.
Designated funds are unrestricted funds which have been allocated for future expenditure for a specific purpose by the Trustees.
Restricted funds are subject to specific conditions imposed by the donor or by the terms of an appeal, these conditions being legally binding upon the Trustees.
**(c) Income recognition** All income is included in the Statement of Financial Activities (SoFA) when the charity is legally entitled to the income after any performance conditions have been met, the amount can be measured reliably and it is probable that the income will be received.
For donations to be recognised the charity will have been notified of the amounts and the settlement date in writing. If there are conditions attached to the donation and this requires a level of performance before entitlement can be obtained then income is deferred until those conditions are fully met or the fulfilment of those conditions is within the control of the charity and it is probable that they will be fulfilled.
Donated facilities and donated professional services are recognised in income at their fair value when their economic benefit is probable, it can be measured reliably and the charity has control over the item. Fair value is determined on the basis of the value of the gift to the charity. For example the amount the charity would be willing to pay in the open market for such facilities and services. A corresponding amount is recognised in expenditure. No amount is included in the financial statements for volunteer time in line with the SORP (FRS 102).
**- 14 -**
**Sobell House Hospice Charity Limited**
## **Notes to the Accounts**
## **for the year ended 31st March 2023 (continued)**
## **1. Accounting policies (continued)**
**(c) Income recognition (continued)** Where practicable, gifts in kind donated for distribution to the beneficiaries of the charity are included in stock and donations in the financial statements upon receipt. If it is impracticable to assess the fair value at receipt or if the costs to undertake such a valuation outweigh any benefits, then the fair value is recognised as a component of donations when it is distributed and an equivalent amount recognised as charitable expenditure.
Gifts in kind donated for resale are not considered practicable to fair value due to the volume of low value items, therefore they are not recognised in the financial statements until they are sold. This income is recognised within ‘shops – sales of goods’.
For legacies, entitlement is the earlier of the charity being notified of an impending distribution or the legacy being received. At this point income is recognised. On occasion legacies will be notified to the charity where it is not possible to measure the amount expected to be distributed. On these occasions, the legacy is treated as a contingent asset and disclosed.
Income from trading activities includes income earned from fundraising events and trading activities to raise funds for the charity. Income is received in exchange for supplying goods and services in order to raise funds and is recognised when entitlement has occurred.
Investment income is earned through holding assets for investment purposes such as shares and investment funds. It includes dividends and interest. Where it is not practicable to identify investment management costs incurred within a scheme with reasonable accuracy the investment income is reported net of these costs. It is included when the amount can be measured reliably. Interest income is recognised using the effective interest method and dividend income is recognised as the charity’s right to receive payment is established.
## **d) Expenditure recognition**
All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably.
Fundraising costs are those incurred in seeking voluntary contributions. Governance costs are those incurred in connection with administration of the Charity as a legal entity and are not connected with generating income or charitable expenditure.
Irrecoverable VAT is charged as an expense against the activity for which expenditure arose.
Grants payable to third parties are within the charitable objectives. Where unconditional grants are offered, this is accrued as soon as the recipient is notified of the grant, as this gives rise to a reasonable expectation that the recipient will receive the grants. Where grants are conditional relating to performance then the grant is only accrued when any unfulfilled conditions are outside of the control of the charity.
**(e) Support costs allocation**
Support costs are those that assist the work of the charity but do not directly represent charitable activities and include office costs, governance costs, administrative payroll costs. They are incurred directly in support of expenditure on the objects of the charity and include project management. Where support costs cannot be directly attributed to particular headings they have been allocated to cost of raising funds and expenditure on charitable activities on a basis consistent with use of the resources.
Fundraising costs are those incurred in seeking voluntary contributions and do not include the costs of disseminating information in support of the charitable activities.
**- 15 -**
**Sobell House Hospice Charity Limited**
## **Notes to the Accounts for the year ended 31st March 2023 (continued)**
## **1. Accounting policies (continued)**
**(f) Tangible fixed assets** These assets are shown at cost less accumulated depreciation. Cost includes costs directly attributable to making the asset capable of operating as intended.
Depreciation is provided using the following rates and bases which reflect the anticipated useful lives of the assets and their residual values:
Leasehold premises Equal instalments over lease term Fixtures, fittings and equipment - IT equipment 331/3% Straight line - Other 25% Reducing balance Motor vehicles 25% Reducing balance
Surpluses or deficits arising on the disposal of tangible fixed assets are adjusted in the depreciation charge for the year.
A limit of £1,000 has been set so that items of a fixed asset nature will be capitalised if above this amount.
## **(g) Investments**
Investments are recognised initially at fair value which is normally the transaction price excluding transaction costs. Subsequently, they are measured at fair value with changes recognised in ‘net gains/(losses) on investments’ in the SoFA if the shares are publicly traded or their fair value can otherwise be measured reliably. Other investments are measured at cost less impairment.
Investments in subsidiaries are measured at cost less impairment.
Current asset investments are short term highly liquid investments and are held at fair value. These include cash on deposit and cash equivalents with a maturity of less than one year.
**(h) Stock**
Stock consists of purchased goods for resale. Stocks are valued at the lower of cost and net realisable value. Items donated for resale are not included in the financial statements until they are sold, as noted in note (c) as it is not considered practicable to fair value the items. Provision is made for damaged, obsolete and slowmoving stock where appropriate.
**(i) Debtors and creditors receivable / payable within one year** Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in expenditure.
## **(j) Impairment**
Assets not measured at fair value are reviewed for any indication that the asset may be impaired at each balance sheet date. If such indication exists, the recoverable amount of the asset, or the asset’s cash generating unit, is estimated and compared to the carrying amount. Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised in the surplus or deficit unless the asset is carried at a revalued amount where the impairment loss is a revaluation decrease.
**(k) Employee benefit** When employees have rendered service to the charity, short-term employee benefits to which the employees are entitled are recognised at the undiscounted amount expected to be paid in exchange for that service.
The charity operates a defined contribution plan for the benefit of its employees. Contributions are expensed as they become payable.
**- 16 -**
## **Sobell House Hospice Charity Limited**
## **Notes to the Accounts for the year ended 31st March 2023 (continued)**
## **1. Accounting policies (continued)**
## **(l) Tax**
The charity is an exempt charity within the meaning of schedule 3 of the Charities Act 2011 and is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes.
## **(m) Going concern**
The financial statements have been prepared on a going concern basis as the Trustees believe that no material uncertainties exist. The Trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. They have concluded that the budgeted income and expenditure is sufficient with the level of reserves held for the charity to be able to continue as a going concern.
## **2. Analysis of total expenditure**
## **Charity and group**
|_Charitable activities_
Grants to Sobell House
RIPEL project costs
Donation to SeeSaw
Hospice depreciation
Catering service
Transport service
Bereavement service
Office costs|**Staff**
**Total**
**Total**
**Costs**
**Other**
**Depreciation**
**2023**
**2022**
**£**
**£**
**£**
**£**
**£**
- 1,341,654
-
1,341,654
840,405
-
612,311
-
612,311
-
-
30,000
-
30,000
36,000
-
-
293,085
293,085
293,085
-
132,910
-
132,910
128,228
-
38,240
-
38,240
34,716
-
119,571
-
119,571
110,702
136,132
89,094
6,217
231,443
210,534|
|---|---|
||136,132 2,363,780
299,302
2,799,214
1,653,670|
**- 17 -**
## **Sobell House Hospice Charity Limited**
## **Notes to the Accounts**
## **for the year ended 31st March 2023 (continued)**
## **2. Analysis of total expenditure (continued)**
|_Cost of raising funds_
**Group**
Fundraising and publicity
Shops cost of sales
Office costs
**Charity**
Fundraising and publicity
Shops cost of sales
Office costs|**Staff**
**Total**
**Total**
**Costs**
**Other**
**Depreciation**
**2023**
**2022**
**£**
**£**
**£**
**£**
**£**
307,348
170,387
8,478
486,213
401,119
675,673
592,832
45,967
1,314,472
1,200,506
136,132
89,094
6,217
231,443
210,534
1,119,153
852,313
60,662
2,032,128
1,812,159
307,348
170,387
8,478
486,213
401,254
675,673
561,490
45,967
1,283,130
1,180,459
136,132
89,094
6,217
231,443
210,534
1,119,153
820,971
60,662
2,000,786
1,792,247|
|---|---|
The Group’s support costs are allocated between Cost of raising funds and Charitable activities as shown below, using the following bases of apportionment:
|Salaries, training
and recruitment
Office overheads
Premises
Depreciation
Total|**Cost of**
**Charitable generating**
**Total**
**Total**
**Basis of**
**activities**
**funds**
**2023**
**2022**
**apportionment**
**£**
**£**
**£**
**£**
136,132
136,132 272,264
279,216
**Staff time**
82,524
82,524 165,048
116,078
**Use of resources**
6,570
6,570
13,140
6,436
**Use of resources**
6,217
6,217
12,434
19,338
**Use of fixed assets**
231,443
231,443 462,886
421,068|
|---|---|
## **Governance costs**
Governance costs comprise the following:-
|Governance costs comprise the following:-|||
|---|---|---|
||**2023**|**2022**|
||**£**|**£**|
|Audit fees|9,225|9,270|
||──────|──────|
||9,225|9,270|
||══════|══════|
**- 18 -**
## **Sobell House Hospice Charity Limited**
## **Notes to the Accounts for the year ended 31st March 2023 (continued)**
## **3.**
## **Analysis of staff costs**
|**Analysis of staff costs**|||||
|---|---|---|---|---|
||**2023**|**2023**|**2022**|**2022**|
||**Group**|**Charity**|**Group**|**Charity**|
||**£**|**£**|**£**|**£**|
|Wages and salaries|1,083,029|1,083,029|1,051,840|1,051,840|
|Social security costs|98,517|98,517|88,852|88,852|
|Pension costs|67,026|67,026|67,694|67,694|
||──────|──────|──────|──────|
||1,248,572|1,248,572|1,208,386|1,208,386|
||══════|══════|══════|══════|
The average full time equivalent weekly number of employees during the period was 30 (2022: 32). The average monthly number of employees during the period was 45 (2022: 47).
One employee of the Charity received remuneration of £70,000 - £80,000 during the year (2022: one; £60,000 - £70,000).
The number of volunteers was 136 (2022: 163).
The pension scheme is a defined contribution scheme. £9,647 of contributions were outstanding for payment as at 31st March 2023 (2022: £7,358).
## **4. Trustees' and key management personnel remuneration and expenses**
The trustees neither received nor waived any remuneration during the year (2022: £Nil).
The total amount of employee remuneration received by key management personnel is £246,454 (2022: £229,939). The Charity considers its key management personnel comprise the Board of Trustees, the Chief Executive, the Director of Finance, the Director of Fundraising, and the Director of Retail.
No (2022: None) trustees are accruing pension arrangements.
No trustees were reimbursed for expenses during the year (2022: £nil).
## **5. Auditors' remuneration**
The auditors' remuneration for the group in the year was:-
|r was:-|||
|---|---|---|
||**2023**|**2022**|
||**£**|**£**|
|- audit|9,225|8,625|
|- other|690|645|
||═════|═════|
**- 19 -**
## **Sobell House Hospice Charity Limited**
## **Notes to the Accounts for the year ended 31st March 2023 (continued)**
|**6.**
**Tangible fixed assets**
**Cost:**
At 1st April 2022
Additions
Disposals
At 31st March 2023
**Accumulated depreciation:**
At 1st April 2022
Charge for the period
Elimination on disposal
At 31st March 2023
**Net book value:**
At 31st March 2023
At 31st March 2022|**Leasehold**
**Leasehold**
**Fixtures,**
**Vans**
**Charity &**
**premises**
**premises**
**fittings &**
**Group**
**(hospice)**
**(shops)**
**equipment**
**total**
**£**
**£**
**£**
**£**
**£**
8,787,993
327,854
237,493
37,826
9,391,166
-
1,160
13,799
-
14,959
-
-
-
(13,245)
(13,245)
8,787,993
329,014
251,292
24,581
9,392,880
2,709,408
174,182
166,838
37,826
3,088,254
293,085
30,541
36,338
-
359,964
-
-
-
(13,245)
(13,245)
3,002,493
204,723
203,176
24,581
3,434,973
5,785,500
124,291
48,116
-
5,957,907
6,078,585
153,672
70,655
-
6,302,912|
|---|---|
The title to the new hospice leasehold premises is held by Sobell House Hospice Charity Limited under the terms of a 30 year lease running from and including 23rd March 2020. These premises are being depreciated over the 30 year period. To facilitate practical arrangements on site there is an underlease back to Oxford University Hospitals NHS Foundation Trust and Sobell House Hospice Charity Limited have a sub-underlease of office premises in the new hospice site.
The title to the existing hospice leasehold premises is now held by Sobell House Hospice Charity Limited under the terms of a 30 year lease with the term running from 7th July 2003. The hospice leasehold premises are being depreciated over the 30 year term. Again for practical reasons on site there is an underlease back to Oxford University Hospitals NHS Foundation Trust.
**- 20 -**
## **Sobell House Hospice Charity Limited**
## **Notes to the Accounts for the year ended 31st March 2023 (continued)**
## **7. Investments**
|**Investments**|||
|---|---|---|
||**2023**|**2022**|
||**£**|**£**|
|**Fixed asset investments**|||
|Quoted investments:|||
|Market value at 1st April 2022|10,666,232|10,918,856|
|Less: Disposals at opening book value|||
|(proceeds £2,259,378 loss £186,157)|(2,445,535)|(1,418,115)|
|Add: Acquisitions at cost|2,042,289|520,542|
|Add: Net gains on revaluation|(701,541)|644,949|
||───────|───────|
|Market value at 31st March 2023 - Group|9,561,445|10,666,232|
|Investment in subsidiary company:-|||
|Sobell Lottery Limited (see note 15)|2|2|
||───────|───────|
|Total - Charity|9,561,447|10,666,234|
||═══════|═══════|
The fair value of quoted investments is determined by reference to the quoted price for the assets in an active market at the balance sheet date.
The historical cost of the above investments was £7,729,326 (2022: £7,453,793).
|**8.**
**Debtors**
**Group**
**Charity**
**2023**
**2023**
**£**
**£**
Tax recoverable
68,182
68,182
Owed by Sobell House Hospice Company Limited
-
1,139
Other debtors
44,663
42,977
Prepayments and accrued income
1,270,850 1,270,850
1,383,695 1,383,148
**9.**
**Creditors**
**Group**
**Charity**
**2023**
**2023**
**£**
**£**
Trade creditors
202,562
202,562
Taxes and social security
39,000
39,000
Other creditors
132,697
130,879
Owed to Sobell House Hospice Company Limited
-
886
Accruals
339,261
339,261
713,520
712,588|**Group**
**Charity**
**2022**
**2022**
**£**
**£**
68,968
68,968
-
-
38,652
35,453
430,539
430,539|
|---|---|
||538,159
534,960|
||**Group**
**Charity**
**2022**
**2022**
**£**
**£**
95,560
95,560
20,006
19,389
9,039
7,357
-
18,368
290,237
287,484|
||414,842
428,158|
**- 21 -**
**Sobell House Hospice Charity Limited**
## **Notes to the Accounts**
## **for the year ended 31st March 2023 (continued**
## **10. Legacies**
A legacy of £242,409 was received and recognised in the year ending 31st March 2014, for which the charity has indemnified the donor against a possible but unlikely claim under the terms of intestacy, the expiry of which, in this case, is 8th November 2042. An additional £100,000 was received from the same legacy in the year ended 31st March 2015, and £16,045 in the year ended 31st March 2017 making a total of £358,454 that the charity has indemnified.
## **11. Analysis of Group net assets between funds**
|Fund balances at 31st March 2023 were
represented by:-
Tangible fixed assets
Fixed asset investments
Current assets
Current liabilities
**Total net assets**|**Restricted**
**General**
**Designated** **Total**
**Funds**
**Funds**
**Funds**
**Funds**
**£**
**£**
**£**
**£**
1,283,467
172,407
4,502,033 5,957,907
-
863,175
8,698,270 9,561,445
73,769
3,180,288
- 3,254,057
-
(713,520)
-
(713,520)
1,357,236
3,502,350 13,200,303 18,059,889|
|---|---|
|Fund balances at 31st March 2022 were
represented by:-
Tangible fixed assets
Fixed asset investments
Current assets
Current liabilities
**Total net assets**|**Restricted**
**General**
**Designated** **Total**
**Funds**
**Funds**
**Funds**
**Funds**
**£**
**£**
**£**
**£**
1,366,184
224,327
4,712,401 6,302,912
-
4,584,665
6,081,567 10,666,232
136,168
2,192,706
- 2,328,874
-
(414,842)
-
(414,842)
1,502,352
6,586,856 10,793,968 18,883,176|
|---|---|
**- 22 -**
## **Sobell House Hospice Charity Limited**
## **Notes to the Accounts for the year ended 31st March 2023 (continued**
## **11. Analysis of Group net assets between funds (continued)**
## **Revaluation reserve:**
Included in unrestricted funds above are the following gains on revaluation:
||**2023**|**2022**|
|---|---|---|
||**£**|**£**|
|Unrealised gains at 1st April 2022|3,212,440|2,917,369|
|In respect of disposals in the year|(492,625)|(306,121)|
||───────|───────|
||2,719,815|2,611,248|
|Net gains arising on revaluation in the year|(887,698)|601,192|
||───────|───────|
|**Unrealised gains at 31st March 2023**|1,832,117|3,212,440|
||═══════|═══════|
The net book value of the leasehold premises (Hospice) of £5,785,500 (2022: £6,078,585) shown in note 6, is allocated between funds as follows:
||**2023**|**2022**|
|---|---|---|
||**£**|**£**|
|Restricted Building Fund|1,283,467|1,366,184|
|Designated Building Fund|4,502,033|4,712,401|
||───────|───────|
||5,785,500|6,078,585|
||═══════|═══════|
**12. a) Designated funds**
|Designated building fund
Designated new projects fund
EOLC Project
Shops fund
Covid 19 emergency fund
Bursary & fellowship fund
EDI
RIPEL project fund
Hospice grant fund|**At 1st**
**At 31st**
**April 2022**
**Movement**
**Depreciation**
**Transfers** **March 2023**
**£**
**£**
**£**
**£**
**£**
4,712,401
-
(210,368)
-
4,502,033
3,262,141
-
-
(3,262,141)
-
658,426
(81,156)
-
-
577,270
161,000
-
-
(7,700)
153,300
1,000,000
-
-
(1,000,000)
-
1,000,000
(32,300)
-
-
967,700
-
(20,000)
-
20,000
-
-
(217,479)
-
3,617,479
3,400,000
-
-
-
3,600,000
3,600,000|
|---|---|
||10,793,968
(350,935)
(210,368)
2,967,638
13,200,303|
**- 23 -**
## **Sobell House Hospice Charity Limited**
## **Notes to the Accounts for the year ended 31st March 2023 (continued)**
## **12. a) Designated funds (continued)**
|Designated building fund
Designated new projects fund
EOLC Project
Shops fund
Covid 19 emergency fund
Bursary & fellowship fund|**At 1st**
**At 31st**
**April 2021**
**Movement**
**Depreciation**
**Transfers** **March 2022**
**£**
**£**
**£**
**£**
**£**
5,060,519
(6,074)
(206,293)
(135,751)
4,712,401
3,127,115
(725)
-
135,751
3,262,141
711,738
(53,312)
-
-
658,426
202,000
-
-
(41,000)
161,000
1,000,000
-
-
-
1,000,000
1,000,000
-
-
-
1,000,000|
|---|---|
||11,101,372
(60,111)
(206,293)
(41,000)
10,793,968|
The Designated Building Funds represent the funds incurred in the building of the original hospice in 2002 and the new hospice wing completed in 2019. It is represented by the book value of the hospice premises as at the year end.
The Designated New Projects fund represented an amount set aside by the Trustees to fund developments in end of life care for the communities of Oxfordshire. The Covid-19 pandemic had previously delayed the consideration and development of these projects. In 2022/23, the charity embarked on funding a significant project for the Oxford University Hospitals NHS Trust known as the ‘RIPEL’ project. The total costs of this project will utilise this fund in full over a three year period, and it has been transferred into a specific project fund above for future reference.
The EOLC (End of Life Care) Project Fund relates to a quality improvement project to help the care of the dying in the hospitals of the OUHFT. This encompasses clinical and educational services. The project provides end of life care for patients, support for their families and carers and staff. The project staff enable conversations about care planning, as well as medication review. The project is now being funded by the Oxford University Hospitals Trust with some ongoing funding being provided by the Charity to enable project evaluation.
The Shops Fund relates to compensation received in respect of the early closure of the Charity’s Botley shop. This fund has been set aside to enable the development of retail activities.
The COVID-19 Emergency Reserve Fund had been set up in April 2020 to cover any unexpected costs or loss of income arising from the COVID-19 pandemic. During the prior year there were no additional costs attributed to the fund and the Charity did not expect that further costs will be as significant and so decided to reduce this fund to £1M. The remaining balance on the fund has been released to general funds in 2022/23.
In May 2021 the Trustees have agreed to set up a Fellowship Reserve Fund of £1M. This will both support existing clinical staff and also attract individuals who would benefit from a medium term assignment at Sobell, with expenditure commencing in 2022/23.
The Hospice grant fund was established to ensure that designated funds are held to cover 24 months of planned grant expenditure, given the severity of the impact any loss of funding would have on the House.
**- 24 -**
## **Sobell House Hospice Charity Limited**
## **Notes to the Accounts for the year ended 31st March 2023 (continued)**
## **12 b) Restricted funds**
|Special purposes fund
RIPEL project fund
Restricted buildings fund
Special purposes fund
Restricted buildings fund|**At 1st**
**At 31st**
**April 2022**
**Income Expenditure** **Transfer March 2023**
**£**
**£**
**£**
**£**
**£**
136,168
81,412
(90,811)
(53,000)
73,769
-
341,832
(394,832)
53,000
-
1,366,184
-
(82,717)
-
1,283,467|
|---|---|
||1,502,352
423,244
(568,360)
-
1,357,236|
||**At 1st**
**At 31st**
**April 2021**
**Income Expenditure** **Transfer March 2022**
**£**
**£**
**£**
**£**
**£**
140,609
30,261
(34,702)
-
136,168
1,452,976
-
(86,792)
-
1,366,184|
||1,593,585
30,261
(121,494)
-
1,502,352|
The Special purposes fund consists of money donated to the charity for the specific use of the Hospice.
The RIPEL project fund relates to monies raised specifically for us on this project, as detailed in note 12a). £53,000 of the opening Special purposes fund balance related to this project, and thus these monies have been transferred into this fund during 2022/23, and subsequently expended.
The Restricted buildings fund relates to appeals to raise funds for the building of the existing Hospice and the new Hospice wing completed in 2019.
## **13. Reconciliation of net income to net cash flow from operating activities**
||**2023**|**2022**|
|---|---|---|
||**£**|**£**|
|Net income for year|(823,287)|472,794|
|Dividends received|(141,700)|(211,601)|
|Interest receivable|(20,811)|(22)|
|Depreciation of tangible fixed assets|359,964|359,096|
|Losses/(gains) on investments|701,541|(644,949)|
|Losses/(gains) on disposal of fixed asset investments|186,157|43,757|
|(Increase)/decrease in stock|(11,582)|(837)|
|(Increase)/decrease in debtors|(845,536)|50,402|
|Increase/ (decrease) in creditors|298,678|(152,888)|
||───────|───────|
|Net cash flow from operating activities|(296,576)|(84,248)|
||═══════|═══════|
**- 25 -**
## **Sobell House Hospice Charity Limited**
## **Notes to the Accounts**
## **for the year ended 31st March 2023 (continued)**
## **14. Related parties**
(i) For the year ended 31st March 2023 the subsidiary companies showed the following results:
|||**Sobell House**|
|---|---|---|
||**Sobell**|**Hospice**|
||**Lottery Ltd**|**Company Ltd**|
||**£**|**£**|
|Turnover|-|52,362|
|Cost of sales|-|(31,342)|
||──────|──────|
|Gross profit|-|21,020|
|Administrative expenses|-|-|
||──────|──────|
|Operating profit|-|21,020|
|Interest receivable|-|-|
||──────|──────|
|Net profit|-|21,020|
|Distribution to Charity|-|(21,020)|
||──────|──────|
|Profit for the year retained|-|-|
||══════|══════|
|The balance sheets of these subsidiaries at 31st March 2023 were:-|||
||**£**|**£**|
|Current assets:|||
|Stocks|-|19,689|
|Debtors|-|2,571|
|Cash at bank and in hand|1,464|3,399|
|Current liabilities:|||
|Other creditors|(1,817)|(1,139)|
||──────|──────|
|Net assets|(353)|24,520|
||══════|══════|
|**Represented by:**|||
|Share capital|2|-|
|Reserves|(355)|24,520|
||══════|══════|
Sobell House Hospice Charity Limited holds 100% of the share capital of Sobell Lottery Limited (company number 03737178). Sobell House Hospice Company Limited (company number 02437912) is a company limited by guarantee – control is via common directors.
- (ii) The Oxford Centre for Education and Research in Palliative Care: Sobell House (OxCERPC) (company number 10647198) is a company limited by guarantee and has one director in common with Sobell House Hospice Charity Limited.
During the year, Sobell House Hospice Charity incurred costs of £nil (2022: £27,870) from OxCERPC, and invoiced costs of £12,720 (£2022: £7,239) to OxCERPC. At the year end, £nil (2022: £1,747) was owed to OxCERPC.
**- 26 -**
## **Sobell House Hospice Charity Limited**
## **Notes to the Accounts**
## **for the year ended 31st March 2023 (continued)**
## **15. Charity Statement of Financial Activities**
The Charity’s own results are summarised below:
||**2023**|**2022**|
|---|---|---|
||**£**|**£**|
|Voluntary income|2,747,649|1,413,268|
|Activities for generating funds|1,933,231|1,666,105|
|Profit distributions from subsidiaries|26,390|12,008|
|Investment income|162,511|211,627|
||───────|───────|
|**Total income**|4,869,781|3,303,008|
|Cost of charitable activities|(2,799,214)|(1,653,670)|
|Cost of raising funds|(2,000,786)|(1,792,251)|
||───────|───────|
|**Net income/(expenditure) before (losses)/gains on investments**|69,781|(142,913)|
|Gains/(losses) on investment assets|(887,698)|601,192|
||───────|───────|
|**Net income/(expenditure)**|(817,917)|458,279|
||**═══════**|═══════|
## **16. Funds received as agent**
During the prior year the charity received funds of £216,000 from the OCCG, on behalf of another organisation. The charity is passing on funds as required, at the instruction of the OCCG, with £130,880 (2022: £168,096) still held at the year end date.
The trustees do not consider it appropriate to report this as income/expenditure of the charity, and the amounts still held are shown as a liability within accruals in note 10.
## **17. Funding commitment**
With effect from 1st April 2022 the charity has commenced funding of a new project for the OUH NHS Trust, in conjunction with Macmillan Cancer Support. The charity will provide funding of up to £3.1m over a three year period (subject to satisfactory delivery of the project), with a further £0.9m also potentially to be provided in addition if required and approved.
The trustees are satisfied that the charity has substantial discretion over future expenditure, and thus these costs are not accrued at the year end date.
General funds have been designated to cover the approximate maximum potential remaining cost of this project (as shown in note 12a).
**- 27 -**