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Nightingale HOSPICE CHARITY Report of the Trustees and Consolidated Financial Statements For the Year Ended 31 March 2021 Company Registration Numbfrw: 06187174 Registsred Charity No. 1119499 Fl•r•nc• Nighlingal• Ho$pi¢• Charity 31 M4LrGh 2021 Contents Reference and Administration D8tails Report of the Trustees R8POrt of the independent auditor Princlpal a¢countiNJ pollcles 25 Consolidated statement of financial actNities 29 Consolidated balance sheet 30 Charity balance sheet 31 Consolidated cash flow statement 32 Notes to the financial statements 33 Florence Nlgthtln9ale Hosp1¢• Charily 31 Marckn 2021 Reference and administrative details Company r•gl*tratlon mirnber 06187174 Charlty number 1119499 R•glstwed offlco Unil 2 Walton Lodge Wallon Street Aylesbury Bucks HP217QY Board ol Trnst••s Mr M Bennett Mr P Bridgman Mr P Cotton Mrs D Earnshaw Mr M Fabes Mr S Jones Mr J Leggett Ms J Naismith Ms S Plumrtdge Mr N Ratclrffe Dr A Watt (Chaimian) Chl•f Exocutlve Mrs J Tumer Bankers Uoyds Bank plc Market Square Aylesbury Bucks HP20 1TD Auditors Azets Audrt SeNtis The Mill House BouThJary Road Loudwater High Wycombe HP10 9QN Inv•6tmont advisor45 Cazenove Fund Managemenl Limited Suite B 6 Worcester st￿et Glouce51er Green Oxlord OX12BX Ylebsite addr•ss wvrfw.fnhospice.org.uk Florènce Nightlnlale Hospice Charity 31 March 2021 Report of the trustees Report of the trustees The Truslees, who are a150 Directors of the Charity for the purpose5 of the Companies Act 20Cfj, present their annual report and Ihe audited finanaal slatemenls for the year ended 31 March 2021. Objectives and activitie$ for the publi¢ benefit The Charrly's vision is lo support the best hospice care for local people both within a Hospice setting and in the community. Objectives and aims The objects of Florence Nighling81e Hospice Charity (the Charity or FNHC) are to promote the relief of people who are suffering from any chronic or tenninal illness, disability or disease, or other physical or mental infiThity by.. 1) Providing care for persons who are suffering as aforesaid by establishing, maintaining and conducting one or more residenli81 nursing homes in England or Wales and by providing medic81 or other I￿atment and attention for any persons in their own homes and to provide assistance to other bodies or persons in achieving such provisions., 2) ConduGling. promoting or encouraging research into care and treatment of persons suffering any illness, disability. disease or infimity. particularty into the care and treatmenl of persons suffering from cancer or terminal illness- 3) Promoting. encouraging or assisting in the teaching ortraining of the medical and clinic81 professions or allied services., 4) Providing, assisting or encouraging the provlsion of splritU81 help and guidance for any persons resioent (either as patients or othe￿IS6). visf(ing. or working in any such home or homes as afores8id; 5) Providing, encouraging or 8ccesslng the provlsion of psychosocial support to families when needed. The Trustees confirm that they have referred to the guidance con18ined in The Charity Commission's general guidance on public benefit when reviewing the Charity's aims and objectives and in planning future aclivilie5 for the year. In order to meet th85e objeclives. the Charity worts in partnership with the Florence Nightingale Hospl¢e, part of Buckinghamshire Healthc8re NHS Trust. and funds or part-funds specific s8tvices, teams. some individual [￿15 and 8quipment indudiro= Working in the Hospice In-Patient Unit.. the Charity funds addrtional staffing costs lo cover absences thereby protecting and maintaining approprfate staffing levels within the 12 bed In-Palienl Unit. Day Hospice.. the Charity funds all costs of the Day Hospice which aims to improve the personal wellbeing of patients through symptom rnanagement *lvi¢e, psychological and therapeutic support. diversional techniques and complementary Iherapies. Lymphoedema Clinic.. the Charity funds all the costs of this seNice ￿lch provides specialist assessfflenls of symploms and treatment through massag8 and specialisl compression bandaging. Di￿ba￿je Liaison Nurse.. the Charity funds this post which assesses and co-ordinales the timely discharye of patien15 from the Hospice and, where necessary, plans package5 of palliative care on dis¢haThJe,' therefore facililating patients. preferred ￿ace of care. Triage Nurse.. the Charity funds a Triage Nurse who marsages patients requiring telephone support, aThJ also maKes first contact with patients referred to assess their needs and lo start symptom control as soon as possible. Flor•ft¢• Nl8htlTrgal• Hosplce Charlty 31 March 2Q21 Report of the trustees Capital costs.. the Charity funds specific clinical equipment and also the refurbishment of parts of the Hospice building as identified by the dinical leads. The Charily pays for the upkeep of the Hospice's courtyard garden, therapeutic and diVe￿I0￿￿ry fflaleria15 and additional food and beverage5 provided for patients and visitors. In the communlty FNH Home.. the Charity fully funds a team of qualified nurses and carers who 8dminisler p8111ative ca across the Aylesbury V81e in patients, homes so they can receive the same level of care and medical 811ention as Ihey would receive in the In-palienl Unil al the Hospice. FNH@Home was established in 2019 and incorporates the Heallhcare Assistants fom)etly known as Nightingale 2417. Communrty Palliative Care Team.. the Charity part-funds this le8m of senior nurses who support patients at their homes in the Aylesbury Vale. Flortie's Children's Team.. the Charity fully funds this team which provides respile and care for children with life-limiling illness in their own homes in addition to offering support to parents and sibliNJs. Bereavement Support.. the Charity fully funds the ¢osts of 50 Volunteer Beffavemenl Lislenets who provide support lo adulis and children pre- and p05t-bereavement. Other Education.. the Cttarity part-funds the provi&on of palliative care education to the dinical community locally and funds 50me specialisl Iraining and professional development for H05PiGe staff. voluntee￿.. the Charity also meets the costs of the Volunteers who contribute to hospice care and inoome generation, specrfically mileage cosis incurred whilst driving patients. Structure, governan¢o and managomont Govemance Florence Nigmingale Hospce Charity is a charita￿e company limited by guarantee.. incorporaled and registered with the Charily Commission on 27 March 2007. It is governed undef its Memorandum and Articles of Association. The liability of the members is limited to an amount not exceeding £10. Organisational structure In nom)al circumslan¢es, the full TtU51ee Board meets quarterty with the Chief Exe¢ulive and other members of the Senior Management Tearn as required, to review the Strategic plan and operational aclivtties of the Charity and the trading subsidiary. Day-to-day management 15 delegated to the Chief Execlrtive. Jo Tumer. The Chief Executive p￿SentS comp￿hen$lve ￿portS on a¢tivily, policy papers and finan¢ial updates in advance of each meeling to ensure the Twstees are fully infomed of the operational, financial and wider policy context. The Board also has responsibilily for overseeing the Charity's investments. As the Charity contended with the challenges arising from the Covi(k19 pandemic in 2020, no￿al Board meetings were suspended from April lo Oclober and replaced with regular meetings of an emergency Committee attended by the Chair of Trustees, Chairs of the Finance. Governance and Retail Boards and the CEO. This allowed decisions to be taken quickly. Flor*n¢• Nlghttngale Hospice Charlty 31 March 2021 Report of the trustees The Tmstees who have served during the year are lisled below. They have served throughout the year except where stated. DrAlan Watt (Chairnan) Mr M 8ennell Mr P Bridgman Mr P Colton Mrs D Eamshaw Mr M Fabes MrSJones Mr J Leggett Ms J Naismith Ms S Plumrsdge Mr N Raicliffe Mrs A Tomkins- resigned 16 September 2020 The Trustees have approved a delegated responsibility to two sub-committees. The Govemance sU￿COMMittee meets quarterly, or as required, to address govemance issues. Trustees in atlendance are John Leggelt (Chair). Alan Wall and Peter Colton. In the yearlhe Charity reviewed prarAice against the revised Charity Governance Code which has upjaled Integrity and Equality, diversity and inclusion principles. We also produced a prot¢)coI for the future appointment of a new Chair as well as ￿ltsng a role description. The Finance sub-committee meets quartedy. or as required, lo review and monitor management reports and cash flow and evaluate new income generation inilialives with the Chief E¥eculive. Finance Manager, Head of Fundraising and other members of the senior rnanagemenl team as appropriate. Trustees in allendance are Simon Jones (Chair), Alan Wall, Mike Bennett and Noel Ratcliffe. During the pandemic it received at leasl monthly cash flow forecasts. The Board of Florence Nighlingale Hospice Shops Limited also reports to the Trustees on Ihe retail aclivities of the business. Dr Watt will step down from the Chair role al the AGM in September 2021. remain on Ihe Board foi the remaining year of his pemitted lerm lo support his successor. Al the March 2021 Bo￿￿ of Trustees. Noel Ratcliffe. who has been a Trustee of FNHC for five ye8r5. wa5 selecled lo te the new Chair. Mr Ratcliffe is 8 nurse by training and worked in palliative care for 9 years including as Director of Nursing for lain Rennie Hospice at Home and Direclor of Clinic81 Services at the Peace Hospice. More recently he has been GP Practice Manager al the Nonlen House Surgery. Winslow, where he led the complex project to merge three GP Practices. He is passionate abolrt the importance of hospice c8re and the SUPPOrt offered to families at very difficult times. In anticipation of his new position Mr Ratcliffe is now also attending the Govemance sub- Committee and Florence Nightingale Hospice Shops B08rd. He was already a member of Finance sutr commitiee. Florence Nightingale Hospice Charily is a member of Hospi￿ UK. the Fundraising Regulator. the Chartered Institute of Fundraising, the Fundraising Preference Service. the Charity Retail Association, Ihe National Council for Voluntary Organisalions and the Association of Chief Executives of Voluntary Organisations. During the year the CEO ke&* up to date with development5 in the hospice and wider chatily sector by allending national and regional sessions led Hospice UK and other groups. We also helped fom a new informal group of Ghatilie5 SUPPOrting NHS Hospices. Floren¢e Nlghtlngale Hosplce Charlty 31 March 2021 Report of the trustees The Charity com[￿leS with all recommended codes of praolice and does not outsource any fom of fundraising lo commercial companies. Recrultment and appointmenl of new Trustees FNHC'S Truslee seleclion process require5 those who are being considered for joining the Board to be interviewed by a panel of nol fewer Ihan two. and no more Ih8n three. C￿￿ent Trustees who are nominated by the Chaiman according lo circumstances. The interview panel submils a recommendation lo the Boaftl of Truslees for a final decision. However, if a candidate has been recommended or introduced by 8 particular Truslee, then thal Truslee will not fom part of the inteNiew panel. Induction and Iraining of new Trustees New Trusiees receive an induction pack including a copy of Ihe Charity Commission s Guide 'The Essential Trustee" the Charity's Memorandum and Articles of Association, Ihe18test fin8nci81 statements, confidenliality and conflict of interest documents, organisational infomiation and a programme of meetings wilh key members of slaff. Related partles Florence NvJhtingale Hospice Shops Lim(ted is the wholly owned trading subsidiary of Florence Nightingale Hospice Charily. The Covid-19 lockdowns meant that our shDPS needed to close for much of 2020121. Measures were taken to mitigate losses such as claimin9 Govemment grants for closed shops and furfough payments. Some landlords kindly offered rent ￿dUCtIOns. A daim is being submitted for business irbterruption. There is more infomation below about how the RelAiI operAlion functioned in the year and the aGtions taken. It is encouraging that the trading sutsidiary has started 2021122 strongly. FlowenGe Nightingale Hospice Chatlly owns shares in The Hospice Lottery Partnership Limited frDm which ti receives a share of the profits raised. Mrs Jo Turner (Chief Executive) is also a dire￿Or of The Hospice Lollery Partnership Limited as the representative of the Charity. The Hospice Lollery Partnership Limited was established in 1997 and Florence Nighlinoale Hospice Charity is one of Ihe three founding hospices it SUPPOrts. FNHC has benefrted from a contribution to our funds of £2,399,852 since Ihal lime. For many years five Hospices have been supported through thls company. Since 2019-20, Associate pariners are being recruiled lo expand the partnership and ils long-leNn income potential. The organisation Reach (representing Wesl Hertfordshire Hospilals) joined as all Associate partner in 2020. Florence Nightingale Hospice Charity from time to lime uses the Se￿ICeS of Parrott and Coales LLP for legal advic8 and to process property leases. In addition, the Charity ha5 had the longsianding benefrf of at least one Parrotl and Coales member of staff serving on the Board of Trustees. However. these Trustees do not take part in any negolialions or discussions in regard to awarding work lo Parrott and Coales and remove themselves from any di5GU5sion where a conflict of interest may occur. Trustee Peter Bridgman 5UPPOrts the Charity at no charge on property matters such as the a￿UlSi110n of new shops and negotiation of leases. At the February 2020 Board meeting it was Agreed that his firm (Brown & Lee) should be paid for costs incurred in preparing fomial submissions and counter-submissions related to the independent rent review of our HQ office Iwallon Lodge in Aylesbury). The review was concluded in the Charity's favour in October 2020. In considering this issue, Trustees and the CEO devised criteria forthe rare o¢¢asions when Trustees migm need to b8 paid. based on Charity Commission documenl CC29. Flofence Nightln9al¢ Hosp1¢• Charity 31 March 2021 Report of the trustees Risk managemenl The TtUStees have a duly lo identify and review the risks lo which the Charily is exposed and lo ensure appropriate controls are in place lo provide reasonable assurance against fraud and error. The Organisational Risk Regisler is reviewed on an annual basis through the Governance Su￿coMmittee. The document follows a weighted likelihood versus impact approach. with an overall risk score and RAG rating for each risk. Since earfy 2020 the most significant risks faang the Charf(y are those posed by Ihe Covid-19 pandemic. Common with all chariiies, these risks have affe(aed multiple areas of operation from the safety and wellbeing of s18ff. volunteers and supporters, to the impad on income gener81ion from fundraising and rfail. Handling these risks wos the main focus of the previous year and the measures taken to add￿$$ them are described in various parts of Ihis report. They include.. Identifying relevant compensation (furfough, grants for dosed shops, insurance, rent reductions) and apply where eligible.. Reforecasling budgets and monitoring cash flow on a more regular basis., Ensuring that our shops and head office were Covid-secure through risk assessment. training and Ihe use of PPE.. Enabling office-based staff to wortE from home., 8nd Adjusting Ihe fundraising Fdan lo the most VIa￿e by limiting public events and focusing on other means. Disruption to income generation is the mosi significant risk because it affects our ability lo fund current and future commilmenls to hospice care to meet the needs of a growing and ageing population. We are addressing the risk by improving and diversifying fundraising approaches, rna￿n9 shops more profitable and acquiriro new ones, raising profile through events and markeling, seeking the help of volunleetS to benefft from their skills. whilst 81so controlling costs 8nd seeking value for money. Another milig8tion is hokling sufficrenl reserves. The Charity has revised rts Reserves Policy in the light of the pandemic which has shown fragility to income streams. The new Reserves Policy better proteds the Charity's significant long-tem commitment to fund existing Hospice services and other long lemi finanaal commitments e.g. the leases on shops and head Off￿e. It also protects funding of addition81 Hospice related services in the medium to long tern. The impact of the pandemic remains our top risk. During the current period fooffall Is affected in our shops and we have limhed our public fundraising. A related high risk is the impact on our volunteers who provide essential support to the Hospice, income generation and head office. It is a n8tionwide trend that many people decided to stop volunteering following the enforced breaks required by the lockdowns. We totally underst8nd Ihis and thank all those who have de￿ded to slep down al this lime for their corrttibulion. A priority task is to recruit and support additional volunteers. The Charily is also exposed to other risks thal could lead to significant disfuption including.. The Hospice being unable to meet the demand for palliative care frffi) local people affecting the reputaliDn of, and support for, the Charity- Failure to recruit and retain high perfomiing staff leads to loss of income, poor morale and risk to operation5 and reputation- A lack of a dear and agreed strategic direction and fonNard plan for the Charity which compromises its growth and finanaal potential,. IT systems not being fil for purpose and limiting flexible and effective working., risking system failure. viruslran50mware attack5. data protection and as a result could affecl incorne and reputation: Flor•n¢• Nl9htln9ale Hospice Charlty 31 Mar¢h 2021 Report of the trustees Poor financial management and pr8c*lces tlsk Income and reputation- and The Charity b￿a¢heS Health and Safety besl practice risking the personal safely of staff, volunteers or the public, thus affeding the Charity's reputation arKI leading to finaneAal pay-outs. However. are confident that we have procedures and resources in place to address these risks. Achievement and perforniance Main objectlves for the Florence Nightingale Hospice Charity in 2020-21 Objectlves for year To continue to 5UPPOrt the provision of high quality specialist palliative care delivered by the Florence N￿htingale Hospice both in the Hospice building and in Ihe community. Achievements over the past year Despite the impact of the Covid-19 pandemic. the Charity has significantly increased ils finanaal support of hospice care during the year thus enabling 8 range of services to be delivered for loc41 people 8t the Florence Niomingale Hospice and in the community. Thi5 wa5 possible despite the impacl of Covid-19 on the Charity's income generation. Trustees took the decision lo liquidate some investments. This was done in November 2020 when it was judged that investments had recovered sufficiently. This indudes the conlinuing two-year pilot projecl to lest 2417 Hospice at Home care in the Ayle5bury Vale which commenced in Octoter 2019. The Florence Nlghtlngale Hospice IFNH} needed to adjust its services appropriately as 8 response to Covid-19. This included the wearing of PPE. following NHS rules restricting the number of visitors allowed into the Hospice. the use of technology like iPads to connect patients and relatives, stopping the usual day hospice seNice and supporting Ihose patients in other ways such as phone calls and delivering support packages. The Hospice and Charity kept in dose touch through this dIff￿u￿ period. Some FNH staff funded by the Charity were reallocated to other Hospice teams as needed e.g. to cover si(*ness absence. The Charity agreed lo be flexible on this given the challenges faced. The Charity manages the website that explains the hospice services (as well as income generation) and keprt this and social media up lo date with news e.g. about Visiting rules and how indivKlual services were affe(Aed. During 2020-21, 301 patients were Gared for by the In- Patienl Unit. The Charity also funded clinics and palliative care in the community which supported 990 people. 625 people were supported by the Community Palliative Care Specialist service. 318 people were supported by the Lyrnphoedema Clinic. 43 people were supported by the Day Hospice- this was fewer than the previous year because of the closure of the Day Hospice building for much of the year. Fl•rpnr• Nl9htlngal• Mosplce Char5ty 31 M•rGh 2021 Report of the trustees Patient satisfaction surveys are given to palients and c4rer5 and routinely exceed the target of 91Yh of replies to be good or excellent. The FNH@Home servlce operating in the Aylesbury Vale continued ils pilot during 202(k21. 11 comprises qualified nurses and the team of Healthcare Assistants who used to be known as the Nighlingale 2417. 161 people were supported by the FNH@Home service as demand grew during the pandeml During the period FNH Home was particulady appreciated as many patients approaching the end of Itfe preferred to be supported al home due to the perceived risk of contracting Covid-19 in hospital and because they could better control who could visit. It was decided to poslpone the start of the first review of the service from October 2020 to May 2021 as all of the FNH staff and services were under severe pressure. The service has been operating from 8am to 8pm but is due to increase to Iwilight. hours from 78m to 11pm soon. It remains the objective of Ihe seNice to operate 2417 when possible. To explore if other palliative care services need lo be funded or rf any Capital improvements need to be made at the Hospice to benefil patients & staff. During Ihe pandemic the Chartiy did nol receive any bids lo fund additional palliative care services delivered by the Florence Nightingale Hospice. A project to completely refurbish the In-patient bathroom was completed in March 2021. The Charily mel Ihe £37,(KJO cost which allowed works to be al 8 high spectficalion in order lo offer a more spa-like environment whilst meeting all infection control and patient needs (e.g. a specialist tilling bath with hoisti. other purchases were made to asslsl wth handliThJ the Covid-19 situation including new chairs for the In-patienl Unit that met infeclion contml rules and iPads to allow communication between patienls and families who could not meet in person. Fan5 have a150 been purchased to imwove temperature control. A projecA to refurbish the Lymphoedema clinic room has been planned for complelion in 2021-22. 11 was not possible to scope further capital last year because of the restrictions. External training opportunities were limited during the year so there were minimal calls on the Chartiy's Hen¢erson education Fund. Florence Nlght5ngale Mosplc• Charlty 31 March 2021 10 Report of the trustees To St￿ng1hen financial and operational oversight of FNHC funded services and projects undertaken by Buckinghamshire Healthcare NHS Trust. Significant progress has been made in this area. A Memorandum of Understanding (MOUI was proposed by the Charily to sel the scene for our partnership wilh BuckinghamshiTe Healthcare NHS Tmst. This is part of a range of measures to m8ke the relationship more business like- ensuring that we have the corred level of oversight of the c.£1 million annu81 grant as well as the required Infom)ation for fundraising (especially from grant-makets) and marketing. The Mou includes the principle that all Hospice services funded by the Charity will have a periodic revlew al which time we could cease funding (with notice) or change the resourcing levels. Quarterfy steering groups have now been set up which will be attended by Charity Trustees and the CEO and senior staff from Buckinghamshire He81thcare NHS Trijst. The first took place in April 2021. At this meeting the Mou and a draft Service Level Agreement (SLA) forthe FNH@Home service were agreed. This SLA fom181 is more concise than the previous CDnlr8cis and makes service objectives and key performance indicators much clearer. The first steering group also considered the first review of the FNH@Home pilot project. Buckingham5hire He8llhc8re NHS Trust's Flnance Department 15 now supplying financial backing da14 alongside their qu8rterty invoices and under the temis of the data sharing agreement, signed in 2019, FNHC now receives transfers of anonymised d81a about FNH services. The Charity has made grant payments for 2019-20 in response to all of Ihese infomation and governance atrangemenls being put in ￿aCe. The new style SLAS now need to be introduced for every service funded by the Charfly. Income generatlon in general. The Covid-19 pandemic meant that the Chaiily made 8 loss of £378,356 before investment gains are taken inlo account. Forecasis during the year predicted a larger loss but this W8s reduced by efforts lo manage costs. claim available compensalions and raise income vthere this was posslble. Tmstees had ag￿ed lo the setting of a deficit budget for 2012110 enable the Charity to invest in additional staff and skills in order lo grow inGome for the medium temi. This defiat was in¢reased by the effects of the Covid-19 P8ndemi¢, particularfy the enforced dosure of non-essenlial retail. Despite the Government grants for closed shops and furfough income, our shops made a loss because Ih8y needed to be closed for such lon periods. We are Florence Nightingale Hospico Charity 31 March 2021 Report of the trustees continuing to exFlore the possibiltiy of a daim under business interruption insurance. Another factor leading to the deficit position was the lower than expecaed legacy income received in year. The main notification received in the year was received in March 2021. In addition our CharitylNHS partnership was not eligiNe for the Govemment's NHS Covid-19 Hospice ¢ompensation allocated by the sector organisation, Hospice UK. £325 million was made available to protect independent hospices from Ihe financial implications of the pandemic, and we understand that many made substantial surpluses as a result. Some partnerships of NHS hospice and supportin9 charities like ours, were awarded additional funding by their supporting NHS Tnjst or Clinical Commissioning Group. Our efforts to lobby for the Florence Nightingale Hospice lo be awarded Covid-19 funding to relieve some of the Charity's commitment in 20121 were unfc)rtunately unsuccessful. More positively. it was possible for fundraising to adjust (ts approach this year in order lo reduce costs signtfic8ntly and raise addrtional funds from virtual events and the crisis appeal. There is more information alx)ut shops and fundraising below. To continue to generate sustainable income from our Retail operation, through online sales and the reopening of shops in a manner which complies with Covid-secure guidance-, prioritising those with highest income polenlial. The 20121 finan￿al year began with all of the shops closed. as mandated by the Government to help control the spread of Covid-19. This w8S P8rticularty fnjstrating as the new Buckinoham shop {ae4uired In e8rty 2020) w8s due to open in March, and we had successfully acquired a new sile for the Furniture Showroom. While the shops were closed. the focus was lo maintain communications with volunteers and fudoughed staff.. mitigate fin8ncial losses.. and make the complex preparations to reopen s8fely Islarting with the shops with the highest income potential) which required de18iled risk 855e5srnents, staff training, making significant changes to shop floors lo allow for soci81 distancing and the purchase of PPE. We are grateful for Ihe advice provided by the Charity Retail Association which helped us to navigate the required changes. Vvendover and Bradmoor reopened al the b inning of July 2020. with the new Showroom opening on 12 August. The shops were initially run by larger staff teams (from various shops), in order lo manage the requirefflenls lo trade safely-, train and build staff confidence lo Irade in very challenging circumstances,, and because volunteers largely chose not return lo the shops. Florence Nlghllnoale H05pl¢e Charlty 31 March 2021 Report of the trustees Warton Court and Winslow reopened In October, although unfortunately all five of the shops were closed once again by the Government in November, and then 8gain in December for the remainder of the finan(ial year. When shops were allowed to open. the focus for the Retail Team was to trade in a Covid-secure way whilst creatlng an engaging retail offer for customers. Despite opening fewer dAys and shorter trading hours., limiied customer num￿(S., and lower footfall, sales in Ihe 5 shops trading in December 2020 were 16QA up on the previous year. This was largely driven by strong perfomiance In Bradmoor and Showroom, the relocations of which proved to be fortuitously timed. This gave confidence lo make ￿an$ to reopen All of our shops as soon as we were able (which they did in April 2021). Thame. Chinnor, Buckingham and Aylesbury High Street remained closed throughout 20121. This was lo mitigate financial loss by saving payroll costs (all of the shops had vac8nciesl and because they had limited income potential due lo size and location.11 is considered that all four shops would have lost more money had they opened as the likely sales would not have covered the staff and operating r￿Sts. The Online Sales team continued ID work throughout the year, including during each lockdown initially wth st8ff and volunteers working at home. The operation was reduced due not being able to sell fumilure140Qh of sales in 2019) and an inconsistent supply of donations during Ihe periods of lockdown. One of the bigge51 challenges for the Relail team duriNJ 20121 was stock management due to the unprecedented amounl of donations (which all had to be quarantined) alongside reduced waste and recycling colleclions. This extraordinary level of donations were managed through opening donation drop off fM)inls, timed bookings and an incredible amount of work by the Relail team. In the summer of 2020, we received support fwom18ndlor(Is to help facilitate donations. by kindly being given use of a second unil in Bradmoor Farm al no cost, and being allowed to have storage container posltioned in the Wallon Lodge HQ car park. We were also supported by landloAls in Thame, Chinnor, Wendover and Buckinoham with generous rent reductions. During the lockdown, the majority of the Retail leam We￿ fudoughed and some ￿mained furfoughed until the summer, allowing the charity lo apply for available Govemment furlough payments. Following a restructu￿, a number of new staff 'oined the Retail team in the final Florence Nightingale Mospite Charity 31 March 2021 13 Report of the trustees quarter of 20-21 and most olher staff were flexi-fudoughed - this time was used for induction and training. and prepare the sho s for stron trade on re-o enin The fundraising response to the pandemic was lo downsize and restructure the fundraising leam lo diversrfy income and redu￿ acilvity and slafflng in areas most affeded by Covid.19. To continue to generate sustainable income from our Fundraising operalion, for example by priorilising approaches that are most promlsing at the current lime. The community, challenge and events team significantly reduced in size aThJ activity. whilst new p)silions were created in the areas of In Memory giving. Trust fundraising and Individual giving. The income diversification efforts meanl income only fell £86,085 during the year, with savings to budgel of £275,552 meaning Ihe fundraising team generated an addilional surplus of £189,438 compared lo budget. The year contained two very successful initiatives. Not the Midnight Walk {NTMNW) and a Crisis appeal. Not the Midnight Walk took p18ce in July 2020 at sunrise with no defined route. It attracted more than 800 walkers and raised over £120,000, nearly tw.ce the amount of a USU81 Midnight Walk. The Crisis appeal took rlace in J8nu8ry, In response to the Charity faeing a £1 million shortfall in income, whilst also receiving no legacy notifications at this wint in the year. All supporters received a leller asking for donations, and more than 1,000 replied. donating more than £130,000. Together. these Iwo inilialives contributed neady a third of the fundraisino leam's income for the year, and show the incredible community support for Florence Nightingale Hospice in Buckingham5hiTe and ils bor(lets. During Ihe year, progress was made prepaiing for Nightingale's Rainbow al Stoke Mandeville Hospital and the associated Nighlingales Rainbow appeal inbow.o .uk raisiw funds for the Charity and the Buckinghamshire NHS Charitable Fund. The rainbow is due to be Gon5truGled in Summer 2021. To contlnue to attract Volunleers to support the Hospice and income generation. For much of 2020-21 most of our volunteers could not help in the usual way.. whether that was in roles assisling palients directly, in our shops or supporting fundraising. The Charity stayed in touch with volunteers through phone calls and e- newsletters. Exceptions were the small group of volunteers who continued lo su ort head office (for exam Floren¢• Nightlngale Hospic• Charoty 31 March 2021 14 Report of the trustees phoning other volunteers) and the bereavement listeners who continued to provide much needed support throughout the pandemic. either by telephone, orwhere Covid restrictions allowed, outside in gardens. Our volunteers retumed lo income generation and administrative roles when this became possible under the Govemmenl rules and following a risk assessment procEss. The gardening volunteers We￿ the first to return to the Hospice in Spting 2021. Many of the volunteers who drive patients to Day Hospice and some of the volunteer Iher8PlSts relumed in June. We have taken the opportunity lo revisit the Hospice volunteer roles so th21 they more acGut3tely meet the needs of the patients. A plan for these roles to return lo the Hosplce is being devised and includes refreshed training. Since reopening in April 2021, our shops have been affected by a significant proportion of volunteers delaying their retum (e.g. wailing for vaccinations) or deciding not to after a yearfs gap. The Charity Ret8il Association estirnates Ihat 40% of charity shop volunteers have decided to call il a day. Recruitment of new volunteers and Iraining staff to be excellent managers of volunteers is therefore a priority. We have identified that a(klitional Charily 51affing will be required to do this. To review the Charily's IT systems and hardware. A substantial IT revlew was carried out by an exlernal provider durino 20121 with 8 detailed implementation rewrt pr(#Juced, which recommended.. new h8rdw8re and soflware improvements to replace unsupported equipment., Cloud based computing on Microsofl 365, induditvJ intemel telephony, Sharepoint for shared files and Team5 for collaboration. The implementation of this ￿VIeW has been pul out for separate tender, with bids being considered over the summer of2021 by a small 9roup oftruslees and SMT. The implementation project will be com￿eted within the 2021122 financial year. As part of the IT transfomiation, the charity's CRM. website and payment processing SUFolle￿ will also be reviewed durin 2021122. Florence Nightlllgale Hospi¢• Charity 31 MarGh 2021 Report of the trustees Maln objectives for Ihe Florence Nlghtingale Hospice Charity in 2021-22 To continue lo support the provision of high quality specialist palliative care delivered by the Florence Nightingale Hospice both in the Hospice building and in the community. This inclLsdes the continuing two-year pilot pmjeci to test Hospice at Home care in the Aylesbury Vale, with Ihe objective in 2021-22 being to increase the hours of operation. To explore rf other palllallve care seNices need to be funded or if any capital improvements need to be made al the Hospi￿ to benefrt patlents & staff. To set a 3 year strategy for Ihe Charity's operations. To further develop the financial and operalional oversight of FNHC funded servi￿$ and projects undertaken by Buckinghamshire HealthrA ￿ NHS Tnjst. This will indthje jointly prTrJuciThJ a SeNi¢e Level Agreement for each service funded by the Charity. To enable in¢ome from the Charity's Retail operation to recover an(J increase- through our CLtrrent portfolio of shops, online sales and by acquiring & opening additional shops. To Increase incDme generation from Fundraising by continuing to diversify inccwne streams and reinlroducing public fundiaising when restricliDn5 allow. To attract additional Volunteers to support the Hospice and income generation following some long- 51anding members of the team standing down because of the pandemic. To implement improvements to the Chaiity's IT sy51ems and hardware In order to drive business efficienThes. Financial review The rgsuKs forthe year ended 31 March 2021 are given in the Consolidated Slatemenl of Financial Adivities together with the Consolidated Balance Sheet giving details of Ihe assels and liabilities. The cornparalwe figures are for the year ended 31 March 2020. The Charity had 8 defi￿1 before investment gains or losses of £378,356 compared lo a surplus in 2020 of £752,554, a f811 of £1,130,910, which wa5 lanjely 8tliibulable lo the CovpJ pandeffiic. However, nel income after significant inve51ment gainsl(los585) was £624,05212020-. £113.392). Legacy income received in the year was £107,518 (2020.. £620,033). In c(￿mOn with other chanlies Legacies are recognised when certain criteria are achieved.. the Charity is advised by the personal representative of an estate that the payment will be made, the re¢eipt is probable and the amount involved can be quantified with reasonable certainty. Grant payments made from the Chaiity to the Buckinghamshire Healthc8re NHS Trust increased ty £113,431 to £887,238. ￿h8 Chaiity had in fact budgeted for the higher sum of £1.010.686 but the Trust kept some vacancies unfilled e.g. in the Day Hospice team because normal operations could not be pursued during the pandemic, In addition to gr8nl funding. a further £97.238 was provided to support the Hospice (2020- £149,903). Overall expenditure on ch8ri18ble activities increased by £130.495 to £1,116,062. Florence Nlghtlnialt H05plce Charity 31 Marcb 2021 16 Report of the trustees There was significant fixed assel spend during the year of £268.94312020.' £56.3301 as the Charity invested in the large new Retail premises al Broadfields. Aylesbury and brought the Chinnor and Thame shops up to slandanl. The Charity's bank balance as at 31 March 2020 was £212.80212020.' £938,223). This inGludes committed funds lo cover the Quarter 4 payment to Buckinghamshi￿ Healihcare NHS Tru51 for £237,409 which was paid in June 2021. Post Balance Sheet Events As mentioned. Covid-19 is having a continuing impact on Ihe Charity. Please see the Risk Management seclion (above) and Going Concem section (below) for more inforTnats'on. The Charity is continuing to explo￿ the p05sibilily of a claim under business inlerTuplion insurance due lo the continued closure of our shops in 2020121. Investments Perfonnance Review The Charity's investment porlfolio is managed by Cazenove Capital Management Limited. The assets are invested in accordance with the inveslmenl managers 'progressive' mandate. this being a portfolio which can invest in an array of asset classes induding bul not lirniled lo equitses, fixed income, commerual pmperty, portfolio funds and hedge funds primarily through Common Investment Funds and Open Ended Inveslmenl Compani8s, lo provide both income and capital apprecialion. Investment parameters are set within this mandate for each asset class. The Charily does not invest in tobacco companies. The Florence Nightingale Hospice Charlty portfolio continues to remain well diversified within the Gonfines of the mandate. The Charity's investments were revalued at 31 March 2021 at a market value in accordance with the accounting poli¢es resutting in a significant unrealised gain of £1,002.408 {2020.' unrealised loss of £639.1621. This relleds Ihe recovery in investments that followed the temporary collapse triggered by the pandemic, followed by furlher growth. Given the financial impact of the pandemic. Trustees took Ihe decision lo encash £0.5 million of investments in November 2020 once markets had recovered. in order to meel the Charity's commitments to Buckinghamshire Healihcare NHS Trust. The value of the investments at 31 March 2021 was £5,183,035. The main focus is on long lem) Capital growth rather than income generation, although £96,246 was received in the year and ￿InVeSted by our Investment Manager. The incom8 on our investments wa5 2.09% (£96.246 on £4,604,000) which is higher than the investment policy sel by Ihe Charily. The Total Return on the portfolio overlhe 12 month period to 31st March 2021 was 24.8%. Iv$ 28.67% for the FTSE All Share and 23.53% for the ARC PCI Growth Index. The of the investment portfolio comes under the ￿mit of the main Board with the detail being reviewed by the Finance Committee. A Cazenove Caprial management ￿presentatIVe attends the Board twice yeady to review the perfomian¢e of the Chartty's investments. Reserves policy During 2020-21, the Truslees have reviewed the Charity's Reserves policy in light of recent experience during the pandemic, the long-te￿n financial commitments of the Charrty. and the Trustees, desire to fund additional Hospice ￿lated seNices in the medium lo long temi. In fomulating a new reseNes policy, the trustees have conSide￿d Ihe Charity Commission Guidance on reserves (CC19). Flor*n¢e Nlghtltk9ale H05pice Charity 31 March 2021 17 Report of the trustees Free reserves a￿ that part of a charity's unreslricled funds that a￿ f￿elY available to spend on any of the charity's purposes. The starting point for calculating the amount of f￿e reserves held is the￿0￿ the amount of unreslri¢ted funds held by a charity. However. some or all of the Un￿sInc1ed funds of a charity may not be readily available for Spending. This is because spending those funds may adversely impact on the charity's ability lo deliver ils aim5. In accordance with the Charily Commission guidance, the items that should be excluded from free reserves are.. Commitments that have nol been provided for as a liability in the accounts.. The Florence Nightingale Hospice Charrly generally has in place a series of Ihreevyear contracls with Buckinghamshire Healthcare NHS Trust IBHT) for the provision of various Se￿iceS at or connected to the FlO￿nCe Nighlingale Hospice. These contracts have staggered dales and therefo￿ on average have eighleen months lo two years unexpired term; and The Chariiy has long le￿ financial commilments on the leases on its shops and head offKe p￿miSes. Designated funds Set aside to meet esselltial future spending, such as funding a projecl that could nol be mel from future income.. A ￿cent exam of this was the FNH@Home service. The remaining Un￿striCted reseNe5, Yree reserves,, shoukl be adequate to cover fluctuations in the Charily's finances broughl aboul by the unpredictability of income sources or unexpeoled ¢osts that might arise. The recent pandemic has shown that some of the Charity's income streams are sus¢eplible lo fluctuation e.g. shop income, which along with the unpredictable nature of legacy income, ￿su11$ in a degree of volatllkty of Income. For much of the year the forecast loss was running 81 six months running costs, but ended up being four monlhs running costs after the Charity received the equlvalent of four months running costs in Government support Ifmm the Job Retention Scheme and the grants for closed shops). In other words the real loss was eight months. worth of runnino costs. We also antieipale a small loss next year as income recovers afterthe pandemic. In liohl of this experience, the Iruslee5 believe that the Charity should aim to hold free reserves of between six and twelve-monlhs running c051s. alongside designated reserves to cover the long-lerm financial comrnrtments and future essential project funding. Designated reserves al 31 March 2021 were £3,945.773 (2020.. £2.140.217). Target free reserves are in the ranoe £650,000- £1,300,000. AI 31 March 2021 free re5erve5 were £1,498,991. Fundralslng standards infomiation The FundraisiThJ Slrategy. which identif18s our income slrearns and the approach taken for each activity in line with the Code of FuThJraising Practice. was reviewed and approved by the Trustees as part of budgeting in February 2021. The Charity 15 registered with the Fundraising Regulator. The Fundraising Regulator holds the Code of Fundraising Pradice for the UK. We follow the Code and ensure thal our fundraising is respectful. open. honest and accountable to the public. All fundraSsing is done in-house and not outsourced to any professional fundraisers or Comffler￿al partner5. All fundraising activity is carried oul wilhin the tems of the Charity's Vulnerable Person Policy, which place5 a stricl duty on staff as reoatrls to appropriate ¢ommuni¢ation and behaviour. The charity prevents Floren¢* NlghtSngale Hospic• Charity 31 Mar¢h 2021 18 Report of the trustees unreasonable inlrusion and persi51enl 8pproaches by excluding recently bereaved individuals from mass communications for 1 year. Supporters also receiv8 a maximum of four fundraising appeals a year. Supporiers also have the ability lo opt-in or opl-oul of fundraisin9 communic81ions. As frontline fundr8iser5 routinely work with bereaved individuals, ￿gUlar Èereavement Ir8ining is compulsory for all fundraising staff and fonns part of the induction process of new fundraisers. The Charity has not received any complainls ￿gardIn9 ils fundraising efforts in the year ended 31 March 2021 or to the date of this report. In all our polic4es and practices we have not aclively sought a(klitional data th81 is not alre8dy in the public domain. We only record data that people opt to provide to us. We do not run face to face ortelerknone fundraising campaigns. Going Concem A5 sel out throughout this report. the Covid-19 pandemic had a profound impact on most of the Charity's income 5treaffls and operations in 2020121. Challenges remain in 2021122. These include the delayed relaxation of lockdown reslriclion5 because of the prevalence of the Def(a variant. the prediction that there will be increased cases of inffluenza in the winter. and the likelihood that any future Govemment finan￿al compensations will be less generous along with insurers no longer offering cover against Covid-19 risk5. 8ecause of this we have budgeted for a small105s in 21122. Profil exceeds budget for Ihe first two months of the year. Our approach to fundraising in 2021122 includes a cautious return lo more in-per50n ComM￿nitY and events fundraising as thi5 becomes possible. Because rnass gatherings were not permitted until after the 19, July 2021, the flagshp Midnight Walk look the fo￿ of 'Not the Midnight Walk. for a second year with participants walking from th￿r own chosen location al dawn on 10, July. Our overall strategy involves conlinuing to develop the fundraising approaches that we invested in last year through the slaffing ￿StrU￿￿Te. The team is focussed on In Mefflory. indwidual gwing, applying lo charitable trusts and partnering with local companies. The Nightingale's Rainbow fundraising initl8tive with Buckinghamshire NHS Charitable Fund is also a priority. As noted for Retail, when the Governmellt restrictions lifted on 12 April 2021, 7 of our shops reopened as well as the Fumilure Showroom. Three of these shops had not traded since March 2020. The new Buckingham shop opened forthe first time on Thursday 15th April. The fo¢us for the Retail Team remains to trade in a Covid-se¢ure way whilst oreating an engaging retail offer for customers. As expecled, so¢ial dislancing, mandatory mask wearing for shoppers, challenges around handling donations ond lower volunleer numbeT5 remain Significant challenges for the Retail operation and all have an impact on inwme. However, due to the inve51menls made in people, property and product, Retail perfom)ance since reopening has been strong, and looks to be mitigating the impact on income that comes with the on-going pandernic 511ualion. The 2021122 Retail budget has been set to allow for a gradual build in sales over Ihe first 4 months lo allow for these challenges. Profrt has also been boosted by the Govemment Restart grants that were paid in April 2021. and the news that no business rales are payable in the year.11 is hoped that sales wll retum lo more nonnal levels as ￿$trICt10n5 lift and vaconalion numbe￿ increase, and that the more oplimistic perfortnance originally ￿anned for in 2020 will be realised in 2021122. The financial statements have been prepared on a goiro concern basis. The Twstees consider thai there are no material uncertainlies about the Charity's 8bility to continue as a going concem despite the continuing Florence Noghtlngale H05pl¢e Charity 31 Mar¢h 2021 19 Report of the trustees ifflpacl of Covid-19. The Charity Can call on the experience of handling the unprecedented situation in 2020121. Thi5 and our f￿ e reselves mean Going Concern ￿MainS the appropriate basis. Volunteers The Charity benefils from the support of around 450 volunleers of all ages who use their skills and experience to work alongside Charity staff on retail and fundraising activities, and with Hospice staff providiro direct patient and family support. As noled, volunteering was very disrupted in 2020121 wrth the Hospice limlllng on site attendance. our shops needing to shut and public fundraising curtailed. The Trustees would like to thank volunteers for retumlng when that became possible. and for their conlinuiThJ commitment and dedication. As noted, we have an objective to allraci addition81 volunteers and this will be a priorily in 2021-22. In doino so we will seek to increase the numbers of young volunteers, especially in our retail shops, as well a5 reaching out widely in order to more accurately reflect our community. Without the time, expertise, generosity and compasslon of our volunteers we could not support arvj enhanc8 Ihe lives of local patients and families or raise the funds needed to secure vital palliative care services for our community. Slaff The Trustees would like to thank all of the staff of Florence Nightingale Hospice Charity for their hard work and dedication in raising and administering the funds needed by the Hospice duting this tn051 challenging lime. The team showed great resilience and flexit4lity whelher Ihey worked Ihroughoul the pandemic period or needed to be furfoughed. The CEO and senior management leam issued frequenl update5 to staff during the year about the is8ues faced by the Charity. An employee consultative committee was created a￿1 a monthly e-newsletter. As part of Ihe Charity's growih slr8legy the original bu(kJet for 2020-21 had included some additional specialist posts lo increase the profilabilily of retail and fundraising.. specifically by diversifying our fundraising approaches and developing the retail management team prior lo acquiring additional shops. When Ihe 5everily of Covid-19 became clear in March 2020 this recruitment was put on hold. In Ihe summer of 2020 Trustee5 and the senior managemenl team agreed on a restructure programme because some existing roles could not be pursued successfully for Ihe foreseeable fuiure and in order to bring in the additional ski115 and experience already identified. Of the slaff affecled. some were SUC￿$sful in applying for n8wly crealed role5 and others opted for voluntary redundancy. No compulsory redundancie5 were made. The cost of redundancies for the Charity and Shops in 2021122 was £59,833. As part of this process contracts of employment Were reviewed and updaled. Trustees would also like to record their sincere thanks lo all of the staff of Florence Nlghtingale Hosplce for how they adapted the delivery of their skilled and comp8ssionate care for local people despite the challenge5 posed by the Covid-19 pandemic. Pay pollcy for senlor staff The directors. who are Ihe Charity's trustees. the Chief Executwe and the senior managemerrt team (see below) comprise the senior management personnel of the Charity in charge of direcling and controlling. running and operating the Chaiity on a day to day basis. All Truslees give of their lime freely and no director received remuneration in Ihe year. Details of di￿¢tOrS, expenses and related party transactions are disclosed in note 9 lo Ihe accounts. Florence Nightingale H¢$pl¢e Charity 31 March 2021 20 Report of the trustees The Senior Management Team consisls of the Chief Executlve. Head of Retall, Head of Fundraising, Head of HR & Volunteering and Finance Manager. Mr Mike Stubberfield is retiring as Finance Manager in July 2021 and Trustees offer Iheir thanks for his conscientious management of the Chaiity's finances over the last 6 years. Mrs Anne Roberts has joined as Head of Finance. The pay of all staff is reviewed and benchmarked peri 1,805,656 1114,662) 624,062 113,392 Reconciliation of funds Total funds brought forward al 1 April 2020 Total funds carried fonvard at 17 1,498,991 31 March 2,565,943 2,140,217 147.271 4,853,431 4,740,039 3.945,773 32,719 6,477,483 4.853.431 The stalement of financial activities also Complies with the ￿qUirementS for an income 8nd expenditure a¢counl under the Companies Act 2006. All the above results are derived from continuing activilies. All gains and losses recognised in the year a￿ included. Th• prln¢lpal a¢¢ouDtlng poll¢l•s and 4¢Fompanylng notes form part of ttt•s• flnanclal statements. Florence Nlghtlnoale Hospice Charity 31 March 2021 30 Consolidated balance sheet Unrestricted Designated Restricted Total Funds Total Funds Funds Funds Funds 2021 2020 Note Fixed assets Tangible Assets Investmenls 12 299,188 13 1,237,262 299,188 78.926 5.183.035 4,405,276 3,945,773 1,536,450 3,945,773 5,482,223 4.484,202 Current assels Stocks Debtors Cash at bank and in hand 14 15 2.893 376.816 180,083 2,893 376,816 212,802 5,010 400.857 938.223 32,719 659.792 32,719 692,511 1.344,090 Creditors Amounts falling due within one year 16 {597,251 137,4S9 {697.251) (974.8611 14,740 369,229 Net current {LiabilitiOS)IAssels 32,719 Total assets less Current liabilities 1.498.991 3,945,773 32,719 S,477,483 4.853,431 Net Assets 1,498.991 3.945.773 32,719 5,477,483 4,853,431 Funds un￿$1(1¢ted funds.. Designated funds.. Restricted don8tlons 1,498,991 3.945,773 32,719 2,565,943 2.140,217 147,271 Tolal funds 17 6,477,483 4,853,431 These financial statements We￿ approved by the Boatd of Trustees on4 Auoust 2021 on their behalf by.. ..8nd were slgned Alan Watt Chairn?an of Trustees Thè prlnclpal aeeountlng polic195 accompanylTrg notes form part of th•s• fln•nGl•l stat•m•nts. Flotence Nlghtlngale Hospice Chawity 31 March 2021 31 Charity balance sheet Unrestricted Designated Restricted Total Funds Total Funds Funds Funds Funds 2021 2020 Note Fixed a$set$ Tangible Assets Investments 12 11,147 13 1,237,264 11,147 5.183.037 18,670 4.405.276 3,94S,773 1,248,411 3,945,773 6,194,184 4,423,946 Currenl assets Deblors Cash at bank and in hand 15 843.764 146.604 843.764 179,323 771.193 480,147 32,719 990,368 32,719 1,023,087 1.251,340 Creditors Amounts falling due within one year 1579,0241 411,344 1579,024) (864,2231 444,063 387,117 Net currenl assets 32,719 Total assets les$ Cur￿n1 liabilitie$ 1,659,755 1,669,755 3,945.773 3,945,773 32,719 5,638,247 32,719 5,638,247 4,811.063 Net As$et$ 4.811.063 Funds Unrestricted funds: Designated fund5: Restricted donations 1,659,7S5 3,945,773 32,719 2,523,575 2,140,217 147.271 Total funds 17 5,638,247 4,811,063 These financial statements were 8pproved by the Board of Trustees on4 Au9.USt 2021 on their behalf by: ..and were slgned Alan Watt Chaimian of Trustees Thè prlnclpal •ccountlTh9 poIIG1•5 and *CGompanyin9 notes form part of th•50 linancial statem•nts. Florenco Nightinoal• H•$pl¢¢ charlty 31 March 202 32 Consolidated Cash flow statement 2021 2020 Cash flows from operating activities: Net eash provided l (used in) by operating a¢livTiies (analysed klow) 1683,0941 1,193,847 (683,0941 1,193,847 Cash flows from investing activities: Purchas8 of tangible fixed assets Purchase of inveslmenls Proceeds from sale of investinents 1266,9761 126,4611 {1,755,7961 (2,091,957) 1,980,446 1,183,842 Net cash used in investlng a¢tivlties 142,3271 1933,576) Change In cash and cash equivalents in the reportlng period 1725,421) 260.271 Cash and cash equivalents at the beginnin9 of the ￿porting period Cash and cash equivalents al Ihe end of the reporting period 938,223 677,962 212,802 938,223 Note: Reconciliation of net movement in funds 2021 2020 Nel movement in funds for the rew)rting period (as per the statement of finan￿al activities) 624,052 111,392 Adjustments for. Depreciallon charges Loss on disposal of fixed asset UnTeali5ed investment gains Movement in stocks Movement in debtors Movernenl in creditors 46,714 45.466 11,002,408) 2,117 24.041 {377.610) 639,162 3,309 (165,196) 559,714 Net ¢ash provided by l (used In) operating activities 1683,094) 1.193.847 Analysis of changes in nel funds 2020 Cash Flov 2021 Cash and cash equlvalents 938.223 1725,421) 212,802 Florence Nightin9al• Hospic• Ch•rity 31 MawGh 2021 33 Notes to the financial statements Donations. Legacies and Grants 2021 2020 Donations (including In Memory aThJ grants from Charitsble Trusts) Legacles Government grants: Furfough re¢eipls for Charity Furlough receipts for Shops Local Authority Covid-19 Shops Grants 630,942 107,518 848,923 620,033 29.860 138.130 256,824 1,163,274 1.468,956 Government grants The Charily has been eligil￿e to clalm addilional funding in year from Govemment support schemes in sponse to the coronavirus outbreak. The Charity fuwloughed 34 employees under the Govemmenl's CJRS. Income from other trading activities 2021 2020 Fundraising from m8s>partlClP8tlon and comffluniiy events Shop income Lollery 216,140 255,809 217.852 378,405 808,946 225,000 689,801 1,412,351 Income from investments 2021 2020 Bank interesl received Dividends ￿ceiVed 59 96,246 1,173 125.721 96,306 126,894 Fl•r•n¢• Nlghtlny•l* Hospl¢e ¢harlty 31 Mar¢h 2021 34 Notes to the financial statements (continued) Costs of raising funds 2021 2020 Fundraising Direct staff costs {note 7) Fundraising expenses and rKomotion Support slaff costs {note 7) Support other costs 203,189 26,503 252,628 102,569 71.658 120,155 301,350 475.352 Shops Tradlng staff costs {note 7) Other costs 501,456 323,594 456,265 340,283 825.OSO 796.528 Support staff costs (note 7) 102,276 Expenditure on charitable activities 2021 2020 Grant funding to staff and seNi¢es deliVe￿d by Florence Nightingale Hospice 887,238 773.807 887.238 773,807 Capital Improvements Direct costs - Paravan Dire￿ costs- Specialisl Palliative Care Education and Training Olher direct oosts Staff cosls (note 7) Govemance (note 6) 36.882 3,649 681 26,167 66.781 94,664 13,034 5,347 9,044 22.586 112,927 48,823 1,116,062 985.568 Govemance costs 2021 2020 Staff costs (not8 7) Legal and professional fees Auditors, remuneration Auditors. remuneration for non-audit seNices 37,328 47,356 9.230 750 15,701 21,991 9,000 2,131 94,664 48,823 Florence Nlghtlngale Ho$plce Charlty 31 March 2021 Notes to the financial statements (continued) Allocation of staff costs 2021: Fundraising Shop Charitable £ Govemance Activities 2021 Tolal Support Payroll Recruitment & Training Other staff costs 201,215 1.598 376 601,456 37,328 65,186 1,033 562 102,275 564 47 907,460 3,195 986 203,189 501,466 37,328 66,781 102.886 911,640 2020: Fundraising Shop £ Governance Charitable Activities 2020 Tol81 Support Payroll Recruitment & Training Olher staff costs 247,252 3,753 1,623 456,208 57 15,701 103,704 4,152 5,071 822.865 7,962 6,694 252,628 456.265 15.701 112.927 837.521 The ollo¢ation of staff ¢0s15 ha5 been reviewed. A proportion of Costs hove been allocated to the Support fun¢tion. This is defined as costs which are necessary to deliver an activity bul which are not, in themselves, a direct Cost of an event or a charilable activity. They include central office fundions such as general management, staff and payroll costs induding training, accounting and finanoe, infomiation technology, marketing, human resources and premises costs. The costs have been allocated based on staff lime spent. Net income Net income is slated after charg1￿j 2021 2020 Auditors, remuneration.. PO￿nI Company Auditors, ￿muneratiOn.. Group {Including Parent company) Auditors, remuneration for non-aLKlit services Depreciation Operating Sease payments-18nd and buildings 5.350 9,230 750 46,714 220,460 5,250 9,000 2,131 45,486 219.088 Trustees, remuneration and benefits There were no trustees. remuneration or other benefrts forthe year ended 31 March 2021 {2020'. nil). Tmstees, ¢xpen$es There were no expens85 reimbursed to the Trustee5 in the year ended 31 March 2021 (2020.. nil). Donations from trustees Donations from Iruslees totalled £845 in the ye8r ended 31 March 2021 P020. £4,767) 10 Staff costs 2021 2020 Wages and salaries Social security costs Pension costs 825,615 55,449 26.396 744.672 52,466 25,727 907.460 821.430 Pl•r*n¢• Nlohtlngalg H05plc• Charity 31 March 2021 Notes to the financial statements (continued) The average number ol persons employed by the Charity during the period was as follows.. 2021 FTE 26 2020 FTE 25 2021 No. 35 2020 No. 33 Fundraising Administration Govemance Ch8rit8ble activrtles 33 31 45 43 No employee eamed more than £60.OIXJ during th8 year (2019: nil). Key management personnel (as defined in the Trustees, Annual Report) toL91 remuneration was £275,472 (2020.. £238,620). Tolal redundancy payments amount to £ $9,833 (2020- £Nil) and relat￿￿ lo ￿struCtUring. 11 Taxation The deferred tax ass81 arises on losses sustained by the trading subsidiary and Is expected to be realised within the next 12 months. 12 Tangible fixed assels Group Short leasehold Fixtur•$ and improvom•nts rthings Computer Equipmfrnl Vans Totals Cost At 1 April 2020 Additions Disposals 29,913 12,022 131,826 248,097 30,259 73.535 6,857 265.533 266.976 Al 31 March 2021 41,935 379,923 30,259 80,392 532.509 Depreciation Al 1 April 2020 Charge for the year On disposal 27,318 3,049 75.498 35,484 22.960 3,649 80.833 4,532 186,607 46.714 At 31 March 2021 30.367 110.980 26.609 85.365 233.321 Net Book Amount At 31 March 2021 11,568 268,943 3,650 15,027 299,188 At 31 March 2020 2,595 58,330 7,299 12,702 78.926 Flor•nc* Nlghtlng*l* H•splc• Charity 31 Mar¢h 2021 37 Notes to the financial statements (continued) Tangible fixed assets Icontinuedl Charfty Fixtures and fittings Computer Equipment Vans Totals Cost At 1 April 2020 Additions 12,109 18,245 33,729 64,083 At 31 Mar¢h 2021 12,109 18,245 33,729 64,083 Depreciation At 1 April 2020 Charge for the year 9,873 869 10,947 3.849 24,594 3,004 45,414 7.522 At 31 March 2021 10,742 14.596 27.598 52,936 Net Book Amount At 31 March 2021 1.367 3,649 6,131 11,147 At 31 Ma￿h 2020 2.236 7.298 9,1 18,670 13 Fixed asset investments Group Shares in Listed participating Investments interesls Totals Market value Al 1 April 2020 Addrtions Disp05als Investment gains l (losses) 4,388,597 1,755.796 (1,980,445) 1.002.408 16,679 4.405.276 1,755,796 (1,980,445) 1,002,408 At 31 March 2021 5.186.356 16.679 5,183,035 Net book value At 31 March 2021 5,166,356 16,679 5,183,035 At 31 Match 2020 4,388,597 18,679 4.405.276 Flor•nGÈ Nlghtlngale Hospice Charity 31 March 2021 3B Notes to the financial statements (continued) Fixed asset investments (continuod Charity Shares in group undertakings Shares in Listed participating Investments interests Totals Market value Al 1 April 2020 Additions DispK)sals Investment gainsl Oossesl 4.388,597 1,755,796 (1,980,445) 1,002.408 16.679 4.405,278 1,755,796 (1,980,445) 1,002.408 Al 31 March 2020 5,166,356 16,679 6,183,037 Net book value At 31 March 2021 5.166,356 16,679 5.183,037 A131 March 2020 4,388,597 16,679 4,405.278 The historical cost of listed investments (for Group and Ch8riiy> held at the year-end was £4,015.539 {2020: £4,294,786>. The Company's investments al the balance sheet date in the share capilal of group undertaknnos indude the following.. The Hosplce Lottery Partnership Limlted Al 31 March 2021 the charitable company owned fourteen sha￿S of £1 nomin81 value each In The Hospice Loiiery Partnetship Limited, A company registered in England and Wales, c8rrying Dut furKlraising for six hospices including Florence Nightingale Hospice Charity. Florence Nightingale Hospice Ch8rrly has held an Interest in The Hospice Lottery Partnership Limiled since ils incorporation in 1997. The difeclors consider thi5 an inveslfflenl a5 they have no significant influence and have no management rights in the slrategi¢, lactical or operational decision5 made by The Hospice Lottery Partne￿hIp Limited. The value of the investment in the company is recognised at cost a5 the equity investment is unquoted and the value cannot be measured reliably. The group doe5 not intend to disp05e of the investmenl in the foreseeable future. Florence Nightingale Hospice Shops Limited N8lure of buslne&s.' Oper8llng Charlty shops Class of share: Ordinary holding 100 2021 2020 Aggregate capital and res8Tves 1160,7611 42,372 The inveslmenl in oroup undertakings relales to the cost of the 2 ordinary shares of £1 each, being 100% of the issued Sha￿ capital of Florence Nightingale Hospice Shops Limited, 8 company incorporated in England and Wales. which is the trading subsidiary of the charitable company. Fl•r•n¢* Nightingale Ho$pi¢• Charlty 31 March 2021 39 Notes to the financial statements (continued) A summary of the results of the subsidiary ks shown below.. 2021 2020 Turnover Cost of sales 249.561 124,948) 808,945 (55,053) Gross profit 224,613 753.892 Adminislralive expenses Other operating income, interest and Charity recharge receN8ble 1794,9671 401,396 (713,571) 2.047 Net Iloss)Iprofil before taxation Tax on Ooss)Iprofit 1168,9581 16,851 42,368 {Loss}Iprofit forlhe financial year 1152,1071 42,368 The aggregate of the assets, liabilities and funds was.. Assets Liabiliknes 424,478 1686,2391 637,746 (595.3761 42,370 DeficiVFunds 1160,761) 14 Stocks 2021 2020 Group 2,893 5,010 15 Deblors: Amounls falling due wilhin one year Group 2021 Charity 2021 Group 2020 Charity 202Q Amounts owed by group undertakings Prepayments and accrued income Deferred Tax Asset Other debto 567,013 58,699 562,739 40,068 122,778 16,851 237.187 196.822 218,062 204,035 168,386 376,816 843,764 400.857 771,193 16 Creditors: Amounts falling due within one year Group 2021 Charity 2021 Group 2020 Charity 2020 Trade credito Taxation and 50¢ial se¢uriiy Olher cTrditotS 455.435 13.385 128,431 456,461 6,960 116,613 795.149 15,909 163,803 783.002 8,556 72.665 597,251 679,024 974.861 864.223 Floren¢0 Nlghtlngale Hosplc• ¢h4rlty 31 March 21121 Notes to the financial statements (continued) 17 Movement in funds Group Net movement In funds Al l Aprll 2020 At 31 March 2021 Unrestricted funds Designated funds R¢strict•d funds 2.565.943 2.140,217 147,271 (1.086,952) 1.805.556 (114.552) 624,052 1.498,991 3.945,773 32,719 Total funds 4,853,431 5,477,483 Charfty Nei movement in funds At l April 2020 At 31 March 2021 Unrestricted funds Designated funds Restricted funds 2,523,575 2,140,217 147.271 (863,820) 1,805,S56 (114.552) 827.184 1,659,7SS 3,945,773 32.719 Total funds 4.811.063 5,638.247 Designated funds have been set up for. 1. An investment income fund lo rellect the unrealised gains on the listed investment portfolio. 2. The funding of.. 2.1. The Charity's conlribution lo palliative and end of life Services delivered by Ihe Florence Nightingale Hospice, part of Buckinghamshire Healthcare NHS Trust. in 2021122 aml 2022123, 2.2. A 5% overheads conlribLrtion lo the cost of Hospice staff funded by the Charity, 2.3. An estimated £30.000 annual contribution lo upgrading Ihe Hospice building, 2.4. Renlals due on the Charity's HQ building and its current portfolio of shops lo the end of Iheir lea5e5. and 2.5. An estimate of the rentals due on new shop leases likely lo be ao]uired in 2021122. Ro$tri¢ted fund5 During the year the oroup and the ¢harilable company received donations that the don0￿ had specified to be spent on certain areas of the Charity's expenditure. These are classified as restricted furK15 a5 follows= Al 1 April 2020 Monies received Expenditure in year At 31 March 2021 staff Benefft 2,182 62.400 135,328) 29,254 FNH Home Day Hospice Lymphoedema Flortie's Children's Team 132,936 1,300 14.893 (147,829) 1.300 2.165 2,901 1,561 {736) (12,414) 10,853 147,271 81,755 1196.3071 32,719 Flor•n¢¢ Nlghtlttg*l* Hosplc• Charity 31 M•r¢h 2021 41 Notes to the financial statements (continued) 17 Movement in funds (Contin1￿1) At 1 April 2019 Monies received Expenditure in year Al 31 March 2020 Staff Benefit FNH@Home Out of Hours Support Lymphoedema Florrie's Children's Team 4,000 2,182 229,500 1,300 701 35.913 {4,000) 196,564> 2,182 132,936 1,300 (701} (25,060) 10,853 4,000 269,S98 (126,325> 147.271 18 Related party disclosure The group and Ihe charitable company received monies from The Hospice Lottery Partnership Limited of which it is a shareholder. tolalling in the year £217,852 (2020.. £225,000). Al the year-end there was a balance of £30,000 owed from The Hospice Lottery Partnership Limited to the Group and the Charitable Company (2020.. £18.075)- Jo Turner (Chief Executive) is also a direGtor of The Hospice Lottery Partnership Limited 8S the representattve of Ihe Charity. The Hospice Lottery Partnership Limited was established in 1997 and Florence Nightingale Hospice Ch8rity is one of the three founding hospices it supports, beneftiting from a contribution lo our funds of £2.399.852 since Ihal time. There are now six hospices which are supported through thi5 company. Florence Nightingale Hospice Charity owns shares in The Hospice Lottery Partnet3hip Limtted from which tt receive5 a sh8re of the proffls raised. As mentioned, when needed the Chartly use the seNices of P8rrotl and C081es LLP for leg81 advice and to process property leases. Mr J Leggett from P8rrott and Coales LLP is a Trustee. The value of the amount Spent by the Charity wrth Pa￿01t and C081es LLP in 2020-21 Is £12,312 + VAT for legal work. {201￿20 is £18,447 + VAT) As mentioned. in 2020-21 the Chadty h8$ benefrted from the seNlces of Brown & Lee in preparing fomial submissions and counter-submissions related to Ihe ￿nt review of its HQ office. A fee of £2,000 plus VAT was paid for this service on 19, October 2020. Currently Mr Peter Bridgman of Brown & Lee is a Trustee and other work on this case was carried out by him at no charge. 19 Operating lease commitments As at 31 March 2021 the Charsly had lotal commitments under non.cancellable leases as follows.. Group Charity Group 2021 2021 2020 Charity 2020 Within one year Between one and five year5 In more than five years 263,310 761,328 363,135 114,720 221,746 21,549 232,532 711,156 188.694 139.063 388.796 39.037 1,377,773 368,016 1.132.382 566.896 Flor•nce Nightingale H¢splce Charlty 31 Mar¢h 2021 42 Notes to the financial statements (continued) 20 Outstanding membership liability Each memb8r 9ives a guarantee to contribute a sum, not exceeding £10, lo the Charity should it be wound up. 21 Financial instruments Group 2021 Charity 2021 Group 2020 Charity 2020 Finan¢ial assets measured at fair value through net incomelexpendilure Fixed asset investments 6,166,356 5,166,356 4,388,592 4,388,592 Financial assets measured al 8mortised cost Fixed 8sset investments 16,179 16,179 18,179 18.179 Debt instmments measured at 8mortised cost other debtors Amounts owed by group uThJertakings 254,038 218,052 567,013 204,035 168,386 562.739 254.038 785.065 204.035 731,126 Fin8nGial liabilities measured at amortised cost Trade Greditors other credito 455,435 128,431 456.451 116,613 795,149 163,803 783.Ch)2 72.865 583,866 572,064 974,861 864,223 The in¢ome, expense5. net gains and losses attributable to th& Charity's financlal instruments are summafised as follows.. Group 2021 Charity 2021 Group 2020 Charity 2020 Income and expenses Fin8nrial assels measured al fair value through net incomelexpenditure 96,305 96,305 126.894 126,894 Nel gains and losses (including changes in fair value) Financial assets measured at fair value through nel incomelexpenditure 1.002,408 1,002,408 (639,162 1639,1621 Flor•nc8 Nlghtlhgal• Ho$pl¢e Gh#rity 31 Mar¢h 2021 43 Notes to the financial statements (continued) 22 Comparatlve statement of financlal activities Unrestricted Designated Restricled Totsl Funds Funds Funds Funds 2020 Income and endowments Donations and legacies Income from olher tradlng activilies other inc¢Jme Income fr(￿ investments 1,199,360 1.412,351 289.596 1,468,956 1,412,351 1.800 126,894 1.800 126,894 Total income and endowments 2.740,405 269.596 3,010,001 Expenditure Costs of raising funds: Fundraising Trading Expenditure on charitable aclivilies 475,352 769,528 859,242 475,352 796,528 985.567 126,325 Total expenditure 2,131.122 126.325 2,257,447 Net incomel{ex￿ndl1yreI before gain$ and lo$so$ on investments Net g8insl(105ses) on investments assets 809,283 143,271 752,554 (639,162) {639,162) Net incomel{expenditure) Tran5fets between funds (29,879) 288.479 143,271 113,392 (286,4791 Net movement in funds 256,600 (288.479) 143,271 113,392 Re¢on¢iliation of funds 2,309,343 2.426.696 4,000 4.740,039 Total fund5 broughl forward 2,565,943 2,140.217 147.271 4,853,431 Total funds cawriod forward 23 Post Balance Sheet Events Infomi81ion Telaling lo the ongoing impact of Covi&19 on the organisation is set out on pages 7-14 and pages 1&19 oflhe Trustees Report. The Charity is putsuing a claim under buslness interruption insurance due to the closure of our shops in 2020121.