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2022-03-31-accounts

Alexander Devine Children's Hospice Service rii Annual Report and Financial Statements For the year ended 31st March 2022 REACHING OUTTO EVERY CHILD AND FAMILYTHAT NEEDS US www.alexanderdevine.org Company No. 05757493 Registered Charity No. 1118947

Alexander Devine Children’s Cancer Trust Annual Report and Financial Statements for the year ended 31[st] March 2022

CONTENTS

PAGE
Report of the Trustees 3 - 9
Reference and Administrative details 10 - 11
Report of the Independent Auditors 12 - 15
Statement of Financial Activities 16
Balance Sheet 17
Statement of Cash Flows 18
Notes to the Financial Statements 19 - 35

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Alexander Devine Children’s Cancer Trust Annual Report and Financial Statements for the year ended 31[st] March 2022

REPORT OF THE TRUSTEES (including Directors Report)

The Trustees who are also directors and members of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31st March 2022. The Trustees have adopted the provisions of the Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

ABOUT THE CHARITY

Alexander Devine Children’s Hospice Service (Alexander Devine) is a registered charity (no.1118947) and company limited by guarantee (No. 5757493).

We are registered as a service provide under the Health and Social Care Act 2008 to carry out regulated activity of treatment of disease, disorder and injury. We are required to register with the Care Quality Commission and the current rating is Good.

John and Fiona Devine set up the charity in memory of their extraordinary little boy, Alexander, who in early 2006 sadly passed away at the age of eight from a rare brain tumour. Their personal experience, and subsequent extensive research, let them to realise that there was a vital need for a local children’s hospice service with a hospice facility in Berkshire.

The charity was established in 2007 and has grown to become the key provider for children’s palliative care in Berkshire. The hospice building, based just outside Maidenhead, was opened in the summer of 2018. Complementing the established community service, it provides day care, overnight respite and end of life care as well as splash sessions in the hydrotherapy pool, specialist play, music therapy and sibling support.

VISION AND MISSION

Our vision is to provide a children’s hospice service within Berkshire and into surrounding counties that will give children and families a choice of care and support from a skilled team. We work closely with the NHS, local authorities and other services to deliver care in the community and in the hospice.

Our mission is to reach out to every child and family who needs us, offering support and care from people who understand.

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Alexander Devine Children’s Cancer Trust Annual Report and Financial Statements for the year ended 31[st] March 2022

In 2022, the charity is celebrating 15 years of providing specialist care and vital support to children and families across Berkshire and into surrounding counties

SERVICE

Alexander Devine Children’s Hospice Service provides palliative and end of life care to babies, children and young people with a life-limiting or life-threatening condition aged 0-25. We care for a wide range of difference conditions and our staff is skilled in meeting the individual and complex needs of each individual child and young person. The support we provide extends to the whole family from diagnosis through to bereavement.

Our service is vital with more than 1,370 children with life-limiting conditions across Berkshire alone. Research shows that this number is likely to increase a further 11% by 2030.( Data source: ‘Make Every Child Count’ study by Fraser et al 2018 )

We work closely with our NHS colleagues and Children’s Community Nursing teams to ensure families have timely access and seamless care.

For children who meet our eligibility criteria our service includes:

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Alexander Devine Children’s Cancer Trust Annual Report and Financial Statements for the year ended 31[st] March 2022

All services are free at point of delivery and are funded through a combination of mainly fundraising activity and a small amount of support from NHS England and local commissioning groups.

ACHIEVEMENTS

We have invested in care delivery to support quality and safe care to improve the experience and outcome for babies, children and young people who require specialist palliative care. Alexander’s Care Team, led by the Director of Care and supported by the Lead for Quality and Governance. In March 2022, the Care Quality Commission (CQC) carried out its first inspection of our children’s hospice service. We were rated GOOD and the inspectors identified some outstanding areas of practice, including:

“I have found the support offered by Alexander Devine absolutely invaluable, literally a lifeline.” Parent supported by Alexander Devine, 2022 Family Survey

Care is delivered by a skilled multi professional team made up of qualified nurses, clinical nurse specialists, carers, play specialists, music therapists, counsellors, pharmacist and doctors.

Of note, the achievements this year have included:

Over the course of the year, Alexander’s Care Team has in total delivered 17,184 (2021 14,454) hours of care to children and families.

The number of children, young people and families Alexander’s Care Team supports has continued to grow. By the end of March 2022 it had increased to 151 (2021: 143). We are finding that the cases referred to us, of which there were 32 in the past year, are becoming more complex such that where a visit previously could be made using just one member of staff, this increasingly needs two.

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Alexander Devine Children’s Cancer Trust Annual Report and Financial Statements for the year ended 31[st] March 2022

PLANS FOR THE FUTURE

The charity had planned to continue to grow and expand services in 2020/21 and thereafter. The restrictions surrounding the COVID-19 virus caused us to pause this further expansion and do everything we could to reduce costs as we suffered a large drop in income with many of the companies and groups that provide a significant proportion of our income closing for a period of time and almost all suffering drops in income. We received income from NHS England to assist us to continue in operation and ease the burden on local hospitals.

For 2021/22, although our usual funding remained low the Board is happy that with the reserves we now have in place, the charity can continue expanding the service, in line with the strategic plan, with the fundraisers actively seeking opportunities to develop other income streams to ensure that our service is sustainable in the long term. The main obstacle to doing this is the shortfall in suitably qualified staff which affects all hospices and in particular children’s hospices. The workforce issue is a national problem and well-recognised by Together For Short Lives, Hospice UK and the NHS.

GOVERNING DOCUMENT

Alexander Devine Children’s Cancer Trust is a charitable company limited by guarantee, incorporated on 27th March 2006 and registered as a charity on 25th April 2007. The company was established under a Memorandum of Association which sets out the objects and powers of the charitable company and is governed under its Articles of Association. The Articles were last updated on 5th October 2017. The charity operates as Alexander Devine Children’s Hospice Service.

All Trustees give their time voluntarily and received no benefits from the charity, with the exception of Dr Fiona Devine as she works full time for the charity as CEO and received permission from the Charity Commission to be paid for this work. Her costs of employment and all expenses claimed by Trustees in the execution of their duties are reported in note 8 to the financial statements. The Trustees have carried out a skills audit to ensure that the Board has the necessary spread of skills to ensure good governance. They look to fill any gaps in knowledge within their contacts and charity supporters and if they do not find suitable candidates, they will widen the spread of applicants by advertising. They ask successful candidates to attend Board meetings for a period to assess their contribution before appointing them full Trustees. There is an induction process in place for new Trustees and ongoing training is available as applicable.

RESPONSIBILITIES OF TRUSTEES

The Directors are responsible for preparing the Report of the Trustees 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 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 that period. In preparing those financial statements, the Trustees are required to:

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Alexander Devine Children’s Cancer Trust Annual Report and Financial Statements for the year ended 31[st] March 2022

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 to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Each of the Trustees has confirmed that in so far as they are aware:

RISK MANAGEMENT

The Trustees regularly consider risk at their bi-monthly meetings and are satisfied that systems in place to mitigate the impact of key risks are being observed. Internal control risks are minimised by the implementation of procedures for the authorisation of all transactions and projects. Procedures are in place to ensure compliance with health and safety regulations for staff, volunteers and families. A comprehensive risk register is in place which is reviewed by the senior management team on a quarterly basis with the biggest risk being difficulty in finding staff. The charity raises money from a suitable spread of sources thereby minimising the risk to overall income of the charity. The Trustees believe that the charity will be able to sustain the service despite the threat of reduced income due to COVID-19. They believe it will prove possible to continue expansion in a measured way.

RESERVES

The target for free reserves now stands at between twelve and fifteen months of ongoing expenditure which is between £1,743,000 and £2,179,000 based on 2021/22 costs. However, with the planned expansion of the service, these figures increase to between £2,331,000 and £2,914,000 for 2022/23. They believe this level will enable the charity to continue its activities and make all payments as they fall due whatever short-term issues may arise. The level of free reserves at the end of March 2022 was £4,152,124 (2021: £2,128,574). Due to the windfall £1.8 million legal receipt this figure is above the Trustees target. However, with a shortfall in income predicted for the next two years they are happy that this level of reserves is appropriate given this, the continuing uncertainty and the expansion in service that they wish to make.

The Trustees believe that they are managing risk and have a sensible and sustainable approach.

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Alexander Devine Children’s Cancer Trust Annual Report and Financial Statements for the year ended 31[st] March 2022

FINANCIAL REVIEW

Total income for the year was £3,817,198 (2021: £1,888,773), showing an increase of over 100% on the previous year. This was completely skewed by the one off legal receipt and without this would be comparable to last year with the usual sources of income producing much less during the year due to the pandemic, but this was supplemented by restricted funding from NHS England of £214,000 which was given to the charity so that the service could continue and could take pressure off the NHS. We have also secured funds from East and West Berkshire Clinical Commissioning Groups to contribute towards the cost of the paediatric end of life pathway.

Expenditure on charitable activities has increased by 12% to £1,435,150 (2021: £1,280,888) reflecting the expansion of the service and the increased running costs of the hospice. Expenditure on raising funds has decreased by nearly 12% to £307,506 (2021: £349,077) reflecting the decreased level of staff required due to the pandemic and a reduction in fundraising activities as well as the loss of our Fundraising Director who had to depart part way through the year for personal reasons.

Support and governance costs have reduced by 1%. Support costs have been allocated between charitable activities and activities to raise funds based on time spent by the members of staff employed in this area. Hospice costs have increased by 9%. £199,000 of this is depreciation with £130,000 of this being building depreciation. Hospice costs are allocated between charitable activities and activities to raise funds on the basis of area of the building occupied. Despite the significant expansion in the service, due to a difficulty in recruiting staff it has not been possible to expand as quickly as Trustees would have wished. The net movement of funds was £2,074,542 (2021: £258,808). The total fund is now over £12.1 million despite having started from nothing in 2006.

PUBLIC BENEFIT

The Trustees considered the guidance offered by the Charity Commission on public benefit and have developed strategic plans to ensure their objectives, the provision of care and support to children with life-limiting and life-threatening conditions and their families, fall under the purposes defined by section 4 of the Charities Act 2011.

STRUCTURE

The day-to-day operations, strategic management and events are managed by Fiona Devine with the support of the Trustees and the four senior management staff. Fiona and the senior team have previous management experience and are suitably qualified. By the end of the year the charity employed 34 permanent members of staff with 20 of these directly involved in the provision of care. Governance is overseen by the Board of Trustees who receive regular briefings from the management and timely financial reports.

FUNDING

The charity takes the fundraising regulations seriously and is registered with the Fundraising Regulator and Fundraising Institute.

The charity raises funds through a variety of income streams, predominantly grants from trusts and foundations, major donors, individual givers, corporate partnerships, community groups and fundraising events. Fundraising from individuals is carefully controlled following

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Alexander Devine Children’s Cancer Trust Annual Report and Financial Statements for the year ended 31[st] March 2022

industry guidelines and no cold calling takes place. The charity does not employ third party organisations for its fundraising.

The charity has a Volunteer Development Manager in post who has responsibility for overseeing volunteers and their compliance with regulations and best practice.

DONORS AND SUPPORTERS

We would like to thank all those who give so generously to our charity for their faith, commitment to us and ongoing support.

KEY MANAGEMENT STAFF PAY

The pay of the charity’s senior management team is set by the Trustees on the recommendation of a third party HR consultancy, which benchmarks the roles against similar posts in other charities.

PATRONS AND VOLUNTEERS

In addition to our nine patrons, we have over 150 volunteers who give up their time and offer endless enthusiasm for the charity. We would like to thank them all sincerely for their help.

AUDITORS

A resolution to reappoint Moore Kingston Smith LLP as auditors will be presented at the AGM.

ON BEHALF OF THE BOARD

John Devine, Chairman

Date: 29[th] September 2022

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Alexander Devine Children’s Cancer Trust Annual Report and Financial Statements for the year ended 31[st] March 2022

REFERENCE AND ADMINISTRATIVE DETAILS

Registered company number 05757493 (England and Wales)

Registered charity number 1118947

Registered office Alexander Devine Children’s Hospice Snowball Hill Maidenhead, Berkshire SL6 3LU

Trustees

Mr John Devine MBA BA (Hons) CMgr MCMI Co-Founder (Chairman) Dr Fiona Devine Co-Founder (Secretary) Mrs Helen Johnson Dr Andrew Boon BSC MD FRCP DCH Mr Fraser Silvey Mr Warren Tonkinson Trustees are also directors of the company and members of the charity

Patrons

Rt Hon Theresa May MP Sir Michael Parkinson CBE Dr Sanjiv Mata Mr Nick Parkinson Dr Peter Sebire Air Marshal Sir Ian Macfadyen CB OBE Mr John Barley BEM Mr Mark Beard

Key management staff Dr Fiona Devine, CEO Dr Helen Bennett, Director of Care Mr Andrew Rice, Director Finance Mr Warren King, Director of HR and Wellbeing Mrs Harjit Bola, Director of Fundraising (left September 2021)

Hospice Telephone Website Snowball Hill 01628 822777 www.alexanderdevine.org Maidenhead 0845 055 8276 Berkshire SL6 3LU Email fundraising@alexanderdevine.org

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Alexander Devine Children’s Cancer Trust Annual Report and Financial Statements for the year ended 31[st] March 2022

Auditors

Moore Kingston Smith LLP Chartered Accountants 9 Appold Street London EC2A 2AP

Bankers

HSBC Bank Plc Barclays Bank Plc 25 High Street 29-30 High Street Windsor Windsor Berkshire Berkshire SL4 1LN SL4 1PG

Shawbrook Bank Lutea House, Warley Hill Business Park Great Warley, Brentwood Essex, CM13 3BE

Solicitors

Russell-Cooke 2 Putney Hill London SW15 6AB

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Alexander Devine Children’s Cancer Trust Annual Report and Financial Statements for the year ended 31[st] March 2022

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF ALEXANDER DEVINE CHILDREN’S CANCER TRUST

OPINION

We have audited the financial statements of Alexander Devine Children’s Cancer Trust (the ‘charity’) for the year ended 31[st] March 2022 which comprise the statement of financial activities, the balance sheet the statement of cash flows, and the notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

BASIS FOR OPINION

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charity 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 charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.

OTHER INFORMATION

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The Trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements

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Alexander Devine Children’s Cancer Trust Annual Report and Financial Statements for the year ended 31[st] March 2022

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. 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 course of 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 this gives rise to a material misstatement in the financial statements themselves. 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

MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION

In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the directors' report included within the Trustees' report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

RESPONSIBILITIES OF TRUSTEES

As explained more fully in the statement of Trustees' responsibilities, the Trustees, who are also the directors of the charitable charity for the purpose 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 charitable charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of

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Alexander Devine Children’s Cancer Trust Annual Report and Financial Statements for the year ended 31[st] March 2022

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 FINANICAL STATEMENTS

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

As part of our planning process;

The key procedures we undertook to detect irregularities including fraud during the course of the audit included:

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Alexander Devine Children’s Cancer Trust Annual Report and Financial Statements for the year ended 31[st] March 2022

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements even though we have properly planned and performed our audit in accordance with auditing standards. The primary responsibility for the prevention and detection of irregularities and fraud rests with those charged with governance of the entity.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

USE OF OUR REPORT

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditors' 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.

Shivani Kothari (Senior Statutory Auditor) for and on behalf of Moore Kingston Smith LLP

Chartered Accountants Statutory Auditor 9 Appold Street London EC2A 2AP United Kingdom

2022

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Alexander Devine Children’s Cancer Trust Annual Report and Financial Statements for the year ended 31[st] March 2022

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31[ST] MARCH 2022

Notes
INCOME from
Donations and legacies
2
Trading activities
3
Other
1c
Investment
Total income
EXPENDITURE on
Raising funds
4
Charitable activities
5
Total expenditure
NET INCOME BEFORE
TRANSFERS
Transfers
Net movement in funds
16
RECONCILIATION OF
FUNDS
Total funds brought
forward
16
TOTAL FUNDS
CARRIED FORWARD
16		 Unrestricted
Funds
£
Restricted
Funds
£
Endowment
Funds
£
2022
Total funds
£
2021
Total funds
£
792,036
1,081,895
-
1,873,931
1,759,862
139,230
-
-
139,230
42,462
1,800,000
-
-
1,800,000
81,815
4,037
-
-
4,037
4,634		 Unrestricted
Funds
£
Restricted
Funds
£
Endowment
Funds
£
2022
Total funds
£
2021
Total funds
£
792,036
1,081,895
-
1,873,931
1,759,862
139,230
-
-
139,230
42,462
1,800,000
-
-
1,800,000
81,815
4,037
-
-
4,037
4,634
2,735,303
1,081,895
-
3,817,198
1,888,773
301,636
-
5,870
307,506
349,077
462,374
847,917
124,859
1,435,150
1,280,888
764,010
847,917
130,729
1,742,656
1,629,965
1,971,293
233,978
(130,729)
2,074,542
258,808
6,411
(6,411)
-
-
-
1,977,704
227,567
(130,729)
2,074,542
258,808
3,475,530
101,809
6,481,286
10,058,625
9,799,817
5,453,234
329,376
6,350,557
12,133,167
10,058,625

The statement of financial activities also complies with the requirements for the income and expenditure account under the Companies Act 2006. All Income and expenditure derives from continuing activities.

Notes 1 to 19 form part of these financial statements.

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Alexander Devine Children’s Cancer Trust Annual Report and Financial Statements for the year ended 31[st] March 2022

BALANCE SHEET AS AT 31[ST] MARCH 2022

Notes
FIXED ASSETS
Tangible assets
11
CURRENT ASSETS
Stocks
Debtors: amounts falling
due within one year
12
Cash at bank and in hand
Cash on deposit
CREDITORS
Amounts falling due within
one year
13
NET CURRENT ASSETS
NET ASSETS
FUNDS
16
Unrestricted funds:
Reserves
Designated
Restricted funds:
Restricted fund
Endowment funds:
Property
TOTAL FUNDS		 £
1,543
236,455
55,702
5,573,945		 2022
£
6,501,546
5,631,621
12,133,167
12,133,167		 £
1,333
166,917
70,777
3,536,716		 2021
£
6,678,242
3,380,383
5,867,645
(236,024)
4,152,124
1,301,110		 3,775,743
(395,360)
2,128,574
1,346,956
10,058,625
10,058,625
5,453,234
329,376
6,350,557		 3,475,530
101,809
6,481,286

Notes 1 to 19 form part of these financial statements.

The financial statements were approved by the Board on 29th September 2022 and were signed on its behalf by:

John Devine – Chairman

Company Registration No. 05757493

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Alexander Devine Children’s Cancer Trust Annual Report and Financial Statements for the year ended 31[st] March 2022

STATEMENT OF CASH FLOWS

Notes
Cash flows from operating activities:
Net cash provided by operating activities
17
Cash flows from investing activities:
Investment income
Purchase of property, plant and
equipment
Sale proceeds from disposal of property,
plant and equipment
Net cash provided by (used in)
investing activities
Cash flows from financing activities
Change in cash and cash equivalents
in the reporting period
Cash and cash equivalents at the
beginning of the reporting period
Cash and cash equivalents at the end
of the reporting period		 2022
£
2,053,198
4,037
(35,081)
-
2,022,154
-
2,022,154
3,607,493
5,629,647		 2021
£
633,131
4,634
(67,848)
-
569,917
-
569,917
3,037,576
3,607,493

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Alexander Devine Children’s Cancer Trust Annual Report and Financial Statements for the year ended 31[st] March 2022

NOTES TO THE FINANCIAL STATEMENTS

1a. ACCOUNTING POLICIES

Charity information

Alexander Devine Children’s Cancer Trust is a private company limited by guarantee incorporated in England and Wales.

Accounting convention

The financial statements have been prepared in accordance with the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1[st] January 2019)". The charity is a Public Benefit Entity as defined by FRS 102.

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

The financial statements have been prepared on the historical cost convention. The principal accounting policies adopted are set out below.

Going concern

At the time of approving the financial statements, despite the effects of COVID-19, given the reserves held, the Trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus, the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

Income

Expenditure

Impairment of fixed assets

At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment

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Alexander Devine Children’s Cancer Trust Annual Report and Financial Statements for the year ended 31[st] March 2022

loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

Financial instruments

The charity has elected to apply the provisions of Section11 “Basic Financial Instruments” and Section 12 “Other Financial Instruments Issues” of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charity’s balance sheet when the charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability immediately.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Financial instruments classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life. Items costing over £1,000 are capitalised. Office equipment – 20% on cost Computer equipment – 25% on cost Hospice equipment – 20% on cost Completed freehold buildings – 2% on cost Land is not depreciated

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

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Alexander Devine Children’s Cancer Trust

Annual Report and Financial Statements for the year ended 31[st] March 2022

Debtors

Debtors include amounts owed to the charity for the provision of goods and services as well as amounts paid in advance for goods and services it will receive.

Cash at bank and in hand

Cash at bank and in hand is held to meet short term commitments as they fall due rather than for investment purposes.

Cash on deposit

Cash on deposit represents monies held on a short-term basis in excess of immediate requirements which are invested to produce investment income.

Creditors

Creditors include amounts due for goods and services provided to the charity and income received in advance.

Taxation

The charity is exempt from corporation tax on its charitable activities.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the Trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Endowment funds represent the value of the building and land. This is not readily realisable as the donors of the land restricted the use of the land.

Designated funds comprise funds which have been set aside at the discretion of the trustees for specific purposes. The purposes and uses of the designated funds are set out in the notes to the financial statements.

Further explanation of the nature and purpose of each fund is included in note 16 to the financial statements.

Support

Support costs are split between charitable activities and the cost of raising funds on the basis of the number of staff employed in each activity.

Page 21

Alexander Devine Children’s Cancer Trust Annual Report and Financial Statements for the year ended 31[st] March 2022

1b. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS

In the application of the Foundation’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Depreciation is the only material ongoing estimate in these accounts. Assets are depreciated based on their estimated useful life.

Apart from this the Trustees do not consider there to be any critical accounting estimates or judgements in preparing the financial statements.

1c. OTHER INCOME

£nil (2021: £81,815) was received in respect of furlough payments from HMRC.

The charity claimed damages for breach of covenant over land adjacent to their premises in 2017. £150,000 plus costs was awarded by the Lands Tribunal. However, the Trustees did not think this was adequate compensation and successfully appealed during the year 2018/19. The Lands Tribunal ruling was set aside and £150,000 damages were repaid. £50,000 was awarded in costs as an interim amount on account. The net amount of these transactions amounting to a charge of £100,000 was shown in other income in 2018/19. The other party made a counter appeal but were not successful. The Trustees have negotiated compensation amounting to £1.8 million which has been received in the year. All costs incurred during the year were treated as governance costs and are shown in note 6.

Page 22

Alexander Devine Children’s Cancer Trust Annual Report and Financial Statements for the year ended 31[st] March 2022

2. INCOME FROM DONATIONS AND LEGACIES

Individual donations
Collections
Community
Gift aid
Corporate donations
Trust and Foundations
In memory
Legacies
Sponsored events
Clinical Commissioning Group income
NHS England COVID-19 support
Department of Health Grant
Individual donations
Collections
Community
Gift aid
Corporate donations
Trust and Foundations
In memory
Legacies
Sponsored events
Clinical Commissioning Group income
NHS England COVID-19 support
Department of Health Grant		 2022
Restricted
2022
Unrestricted
2022
Total
2021
Total
£
£
£
£
650
116,553
117,203
176,763
-
8,558
8,558
4,119
-
115,272
115,272
98,109
-
43,129
43,129
50,285
-
307,885
307,885
300,525
399,805
95,589
495,394
379,131
-
28,003
28,003
15,002
-
20,000
20,000
4,500
-
57,047
57,047
64,234
342,650
-
342,650
100,158
213,514
-
213,514
460,657
125,276
-
125,276
106,379
1,081,895
792,036
1,873,931
1,759,862
2021
Restricted
2021
Unrestricted
2021
Total
£
£
£
3,000
173,763
176,763
-
4,119
4,119
(2,288)
100,397
98,109
-
50,285
50,285
39,000
261,525
300,525
235,673
143,458
379,131
-
15,002
15,002
-
4,500
4,500
-
64,234
64,234
100,158
-
100,158
460,657
-
460,657
106,379
-
106,379
942,579
817,283
1,759,862

Page 23

Alexander Devine Children’s Cancer Trust Annual Report and Financial Statements for the year ended 31[st] March 2022

3. INCOME FROM OTHER TRADING ACTIVITIES

Fundraising events
Volunteer events
Recycling
Sale of merchandise		 2022
Unrestricted
2021
Unrestricted
£
£
86,346
32,547
50,583
8,493
-
14
2,301
1,408
139,230
42,462

4. EXPENDITURE ON RAISING FUNDS

Staff and recruitment costs
Share of hospice costs
Share of hospice depreciation
Fundraising events and other
direct costs
Cost of merchandise sold
Cost of sponsored events
Share of support and
governance costs		 2022
Restricted
2022
Endowment
2022
Unrestricted
2022
Total
2021
Total
£
£
£
£
£
-
-
124,863
124,863
204,340
-
-
2,896
2,896
1,900
-
5,870
3,084
8,954
8,885
-
-
49,382
49,382
14,639
-
-
1,819
1,819
1,533
-
-
-
-
396
-
-
119,592
119,592
117,384
-
5,870
301,636
307,506
349,077
Staff and recruitment costs
Share of hospice costs
Share of hospice depreciation
Fundraising events and other
direct costs
Cost of merchandise sold
Cost of sponsored events
Share of support and
governance costs		 2021
Restricted
2021
Endowment
2021
Unrestricted
2021
Total
£
£
£
£
-
-
204,340
204,340
-
-
1,900
1,900
-
5,835
3,050
8,885
-
-
14,639
14,639
-
-
1,533
1,533
-
-
396
396
239
-
117,145
117,384
239
5,835
343,003
349,077

Page 24

Alexander Devine Children’s Cancer Trust Annual Report and Financial Statements for the year ended 31[st] March 2022

5. EXPENDITURE ON CHARITABLE ACTIVITIES

Staff and recruitment costs
Other direct costs
Payments to NHS for external
pharmacy costs
Payments to NHS for
paediatrician support
CQC subscription
Share of hospice running costs
Share of hospice depreciation
Share of support and
governance costs
Staff and recruitment costs
Other direct costs
Payments to NHS for external
nursing costs
Payments to NHS for
paediatrician support
Patients Christmas party
CQC subscription
Share of hospice running costs
Share of hospice depreciation
Share of support and
governance costs		 2022
Restricted
2022
Endowment
2022
Unrestricted
2022
Total
2021
Total
£
£
£
£
£
475,627
-
200,788
676,414
588,834
16,959
-
11,677
28,636
24,967
9,303
-
-
9,303
-
24,351
-
4,057
28,409
7,079
709
-
1,224
1,933
1,933
30,008
-
31,605
61,613
40,393
31,404
124,859
34,201
190,464
189,006
259,556
-
178,822
438,378
428,676
847,917
124,859
462,374
1,435,150
1,280,888
2021
Restricted
2021
Endowment
2021
Unrestricted
2021
Total
£
£
£
£
494,986
-
93,848
588,834
22,189
-
2,778
24,967
-
-
-
-
5,291
-
1,788
7,079
-
-
-
-
1,445
-
488
1,933
22,593
-
17,800
40,393
48,496
124,117
16,393
189,006
335,681
-
92,995
428,676
930,681
124,117
226,090
1,280,888

Page 25

Alexander Devine Children’s Cancer Trust Annual Report and Financial Statements for the year ended 31[st] March 2022

6. SUPPORT AND GOVERNANCE COSTS

Support costs
Staff and recruitment costs
Office rent and utilities
Telephone, bank costs,
printing and other costs
Travel costs
Consultancy
Insurance
Depreciation
Governance costs
Audit fee
Legal costs (see note 1c)
Trustee expenses
Total support and
governance costs
Reallocated to raising funds
Reallocated to charitable
activities		 2022
2021
£
£
297,409
297,575
18,390
18,208
44,680
44,222
-
32
343
813
21,930
20,055
12,360
18,075
395,112
398,980
16,823
5,420
145,037
140,994
998
667
162,858
147,081
537,970
546,061
119,592
117,396
438,378
428,665
537,970
546,061

Support and governance costs are split between charitable activities and cost of raising funds on an assessment of the workload of each employee allocated to support.

Page 26

Alexander Devine Children’s Cancer Trust Annual Report and Financial Statements for the year ended 31[st] March 2022

7. NET INCOME

Net income is stated after charging:

2022 2021
£ £
Depreciation – owned assets 211,777 215,965
Auditors remuneration 16,823 5,420
Auditors other fees - -

8. TRUSTEES’ REMUNERATION AND BENEFITS

Apart from as set out below, there were no Trustees' remuneration or other benefits for the year ended 31st March 2022 nor for the year ended 31st March 2021. Trustees' expenses paid for the year ended 31st March 2022 were £998 (2021: £667) paid to two Trustees (2021: one Trustee). These sums were paid in reimbursement of items purchased on behalf of the charity.

The Charity Commission has given approval for the employment of Dr Fiona Devine as CEO. Her total remuneration for the year to 31st March 2022 amounted to £69,477 (2021: £69,513). Employer National insurance costs on this amounted to £8,368 (2021: £8,380) and pension costs to £2,084 (2021: £2,085).

The Connor Consultancy Ltd, a company of which one of our Trustees (Fraser Silvey) is a Director, gave the charity £1,650 during the year in exchange for tickets to the annual ball.

Other than this there are no other related party transactions other than those disclosed above.

Page 27

Alexander Devine Children’s Cancer Trust Annual Report and Financial Statements for the year ended 31[st] March 2022

9. HOSPICE COSTS

Utilities
Depreciation of buildings and
equipment
Equipment maintenance
General running costs
Reallocated to raising funds
Reallocated to charitable
activities		 2022
2021
£
£
31,533
23,116
199,417
197,891
29,979
12,947
2,998
6,230
263,927
240,184
11,850
10,785
252,077
229,399
263,927
240,184

Hospice costs are split between charitable activities and cost of raising funds on the basis of area occupied.

10. STAFF COSTS

0. STAFF COSTS
Wages and salaries
Charitable activities
Fundraising activities
Support and governance
Total wages and salaries
Employer National Insurance
Travel and uniforms
Staff training
Pension costs
Recruitment fees		 2022
2021
£
£
555,985
490,380
107,879
182,758
261,018
262,338
924,882
935,476
84,972
80,975
16,603
12,319
15,076
9,475
52,571
48,082
4,583
4,422
1,098,687
1,090,749

There were 15 permanent full-time employees and 19 part time employees as at 31st March 2022, equal to 24.18 (2021: 25.34) full-time employees. The average number of full-time equivalent employees during the year was 26.07 (2021: 24.77).

No employee earned more than £60,000 per annum apart from Dr Devine as above. Remuneration for the four and half key management staff in the year was £218,673 (2021: five staff, £243,877). The personnel are listed on page 10.

Included in the above is £nil (2021 £35,350) in respect of redundancy costs during the year.

Page 28

Alexander Devine Children’s Cancer Trust Annual Report and Financial Statements for the year ended 31[st] March 2022

11. TANGIBLE FIXED ASSETS

COST
At 1st April 2021
Additions
As at 31st March 2022
DEPRECIATION
At 1st April 2021
Charge for year
As at 31st March 2022
NET BOOK VALUE
At 31st March 2022
At 31stMarch 2021		 Land and
Buildings
Hospice
Equipment
Office
Equipment
Computer
Equipment
Total
£
£
£
£
£
7,009,292
342,936
1,562
72,443
7,426,233
-
17,913
-
17,168
35,081
7,009,292
360,849
1,562
89,611
7,461,314
528,005
158,544
1,508
59,934
747,991
130,730
68,687
54
12,306
211,777
658,735
227,231
1,562
72,240
959,768
6,350,557
133,618
-
17,371
6,501,546
6,481,287
184,392
54
12,509
6,678,242

12. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Prepayments
Other debtors
Floats
Gift aid outstanding
VAT due from HMRC
Interest receivable		 2022
2021
£
£
12,194
11,654
205,935
142,362
300
-
8,030
6,060
9,658
5,989
338
852
236,455
166,917

Page 29

Alexander Devine Children’s Cancer Trust Annual Report and Financial Statements for the year ended 31[st] March 2022

13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Deferred Income
At 1stApril 2021
Income deferred
Income released
At 31stMarch 2022
Social security and other taxes
Provision for liabilities
Accruals
Pension payments due		 2022
2021
£
£
117,440
66,086
(178,714)
4,812
22,777
5,540
113,100
(1,200)
117,440
20,482
60,000
-
139,203
249,502
9,232
7,936
236,024
395,360

In respect of the legal case mentioned in note 1c an ongoing discussion has arisen in respect of amounts due to advisors. Trustees have offered a settlement of £60,000 and a provision for this amount has been included above.

14. COMMITMENTS UNDER OPERATING LEASES

At 31st March 2022, the charity had outstanding commitments for future minimum lease payments under non-cancellable operating leases as follows:

Expiry date:
Within one year
Between two and five years		 2022
2021
£
£
7,000
7,000
-
-
7,000
7,000

15. CAPITAL COMMITMENTS

There were no capital commitments at 31st March 2022 (2021: £nil).

Page 30

Alexander Devine Children’s Cancer Trust Annual Report and Financial Statements for the year ended 31[st] March 2022

16. MOVEMENT IN FUNDS

Unrestricted funds
Designated
Free reserves
Restricted funds
Restricted
Endowment fund
TOTAL FUNDS
Unrestricted funds
Designated
Free reserves
Restricted funds
Restricted
Endowment fund
TOTAL FUNDS		 At
1st April 2021
Net Movement
in funds
At
31st March 2022
£
£
£
1,346,956
(45,846)
1,301,110
2,128,574
2,023,550
4,152,124
101,809
227,567
329,376
6,481,286
(130,729)
6,350,557
10,058,625
2,074,542
12,133,167
At
1st April 2020
Net Movement
in funds
At
31st March 2021
£
£
£
1,418,604
(71,648)
1,346,956
1,688,733
439,841
2,128,574
134,725
(32,916)
101,809
6,557,755
(76,469)
6,481,286
9,799,817
258,808
10,058,625

The endowment fund represents the value of land donated on 28th March 2012 plus amounts spent on the building less depreciation.

There is a covenant in the transfer agreement that the land may only be used for a hospice, hospital or nursing home.

Designated funds were set aside by the Trustees for further work on the hospice and gardens and for ongoing maintenance for the hospice, and also to take account of the amounts tied up in fixed assets that cannot readily be realised.

Page 31

Alexander Devine Children’s Cancer Trust Annual Report and Financial Statements for the year ended 31[st] March 2022

FUND BALANCES AT 31[ST] MARCH 2022

Tangible fixed assets
Current assets
Creditors: amounts falling
due within one year
TOTAL FUNDS AS AT 31st
MARCH 2022		 Unrestricted
funds
Restricted
funds
Endowment
funds
Total
£
£
£
£
150,989
-
6,350,557
6,501,546
5,538,269
329,376
-
5,867,645
(236,024)
-
-
(236,024)
5,453,234
329,376
6,350,557
12,133,167

FUND BALANCES AT 31[ST] MARCH 2021


Tangible fixed assets
Current assets
Creditors: amounts falling
due within one year
TOTAL FUNDS AS AT 31st
MARCH 2021		 Unrestricted
funds
Restricted
funds
Endowment
funds
Total
£
£
£
£
196,956
-
6,481,286
6,678,242
3,673,934
101,809
-
3,775,743
(395,360)
-
-
(395,360)
3,475,530
101,809
6,481,286
10,058,625

Page 32

Alexander Devine Children’s Cancer Trust Annual Report and Financial Statements for the year ended 31[st] March 2022

PURPOSE OF RESTRICTED FUNDS

Restricted funds must be used in accordance with specific conditions imposed by donors.

Alexander’s Nursing team
Local Clinical
Commissioning
NHS palliative care
funding
NHS England COVID
funding
Play specialist
Additional nurse
Hospice gardens
Equipment
Total Restricted funds
Alexander’s Nursing team
NHS palliative care
funding
NHS England COVID
funding
Play specialist
Additional nurse
Local Clinical
Commissioning
Hospice gardens
Equipment
Total Restricted funds		 At
1stApril
2021
Incoming
Resources
Resources
Expended
Transfers
At
31st March
2022
£
£
£
£
£
29,760
340,924
(109,129)
(3,565)
257,990
-
342,650
(284,650)
-
58,000
-
125,276
(125,276)
-
-
-
213,514
(213,514)
-
-
-
14,127
(14,127)
-
-
63,485
27,000
(90,485)
-
-
-
5,500
-
-
5,500
8,564
12,904
(10,736)
(2,846)
7,886
101,809
1,081,895
(847,917)
(6,411)
329,376
At
1stApril
2020
Incoming
Resources
Resources
Expended
Transfers
At
31stMarch
2021
£
£
£
£
£
19,428
77,151
(66,819)
-
29,760
-
106,379
(106,379)
-
-
-
460,657
(460,657)
-
8,639
1,000
(9,639)
-
-
60,746
185,452
(182,713)
-
63,485
-
100,158
(100,158)
-
-
37,375
-
-
(37,375)
-
8,537
11,782
(4,555)
(7,200)
8,564
134,725
942,579
(930,920)
(44,575)
101,809

The Alexander Nursing team fund arose from a number of donations, which were restricted to the care team associated activities and is being spent on providing direct care and support to life limited children and their families.

Local Clinical Commissioning relates to payments from the local Clinical Commissioning Group to be spent on our clinical nurse specialists.

NHS palliative care funding is a Section 64 grant from the Department of Health specifically for the cost of palliative care in the community.

Page 33

Alexander Devine Children’s Cancer Trust Annual Report and Financial Statements for the year ended 31[st] March 2022

NHS England COVID funding is funding that was awarded to allow the hospice to make available bed capacity and community support from December 2021 to March 2022 to provide support to children with complex needs in the context of the COVID-19 situation.

Donations have also been received towards funding a play specialist as well as an additional nurse and carer.

The gardens fund was set up to raise money to construct gardens for the hospice. Donations to this fund are set against expenditure on the gardens.

A number of other donations have been received for equipment for the hospice. Some of these are restricted to specific items.

The transfers arose in respect of expenditure on gardens and equipment which was directly allocated to the balance sheet and not to the income and expenditure account.

17. RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES

Net income for the reporting period (as per the statement of financial
activities)
Adjustments for:
Depreciation charges
Investing activities
(Increase)/decrease in stocks
(Increase) in debtors
)Decrease)/Increase in creditors
Net cash provided by operating activities		 2022
2021
£
£
2,074,542
258,808
211,777
215,965
(4,037)
(4,634)
(210)
577
(69,538)
(123,932)
(159,336)
286,347
2,053,198
633,131

18. ANALYSIS OF NET CHANGES IN FUNDS

The charity had no debt during the year.

Page 34

Alexander Devine Children’s Cancer Trust Annual Report and Financial Statements for the year ended 31[st] March 2022

19. STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31[ST] MARCH 2021

Notes
INCOME from
Donations and legacies
2
Trading activities
3
Other
1c
Investment
Total income
EXPENDITURE on
Raising funds
4
Charitable activities
5
Total expenditure
NET INCOME BEFORE
TRANSFERS
Transfers
Net movement in funds
16
RECONCILIATION OF
FUNDS
Total funds brought
forward
16
TOTAL FUNDS
CARRIED FORWARD
16		 Unrestricted
Funds
£
Restricted
Funds
£
Endowment
Funds
£
2021
Total funds
£
2020
Total funds
£
817,283
942,579
-
1,759,862
1,417,652
42,462
-
-
42,462
128,920
81,815
-
-
81,815
3,451
4,634
-
-
4,634
17,052		 Unrestricted
Funds
£
Restricted
Funds
£
Endowment
Funds
£
2021
Total funds
£
2020
Total funds
£
817,283
942,579
-
1,759,862
1,417,652
42,462
-
-
42,462
128,920
81,815
-
-
81,815
3,451
4,634
-
-
4,634
17,052
946,194
942,579
-
1,888,773
1,567,075
343,003
239
5,835
349,077
468,781
226,090
930,681
124,117
1,280,888
967,385
569,093
930,920
129,952
1,629,965
1,436,166
377,101
11,659
(129,952)
258,808
130,909
(8,908)
(44,575)
53,483
-
-
368,193
(32,916)
(76,469)
258,808
130,909
3,107,337
134,725
6,557,755
9,799,817
9,668,908
3,475,530
101,809
6,481,286
10,058,625
9,799,817

The statement of financial activities also complies with the requirements for the income and expenditure account under the Companies Act 2006. All Income and expenditure derives from continuing activities.

Page 35