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2022-03-31-accounts

Annual Report and Financial Statements For the year ended 31 March 2022

Table of Contents

The trustees present their annual report which includes the directors’ report and strategic report required by Company Law, and the Trustees’ Report required by Charity Law

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Trustees Annual Report 3-29
The Year in Numbers 3
How We Delivered Our Care During The Year? 5
Chair and CEO Report 6
How Did We Improve Our Care During The Year? 7
Your Voice - Patient And Family Feedback 12
Objectives And Plans For Next Year 15
Structure, Governance and Management 16
Statement Of Trustee’s Responsibilities 22
Risk 23
Financial Review 26
Financial Performance 27
Independent Auditors’ Report 30
Statement of Financial Activities 34
Balance Sheet 35
Cash Flow Statement 36
Notes to Financial Statements 37-52
Our Thanks 53
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The Year in Numbers

I n another challenging year for the charity, with Covid restrictions gradually easing, our staff volunteers continued to work hard to support the increase in clinical and fundraising activity.

For the year ended March 2022, in total, it cost £7.2m to provide care for patients and their families facing life limiting illness, this included the cost of raising funds to support these services. £6.7m of total income was raised from the generosity of supporters via voluntary income, shops and lottery activities. This was particularly heartening in a year when our local community faced growing difficult economic conditions and new Covid variants threatened to restrict local activities to support ellenor . Working together with the community to meet their hospice care needs, these funds raised help support the delivery of high standard, professional care services during the year. Through these services ellenor was able to care for 3,023 patients (2021: 2981) during the year. These patients had 5,047 interactions across ellenor's wide range of services. Our clinical community teams in conjunction with our support departments, made 58,321 contacts with patient and their families in the year.

This increase in care capacity, in most of ellenor's services, could not have been achieved without the hard work of it's 152 staff and 333 volunteers. The Trustees are proud that these staff and volunteers, with their wealth of specialist skills, knowledge and experience, working together across all ellenor's services assisted in reducing local hospital admissions and the length of stay. This in turn supported local health providers to cope with any new variants and an increasing patient demand. This was recognised through the receipt of National Health Service England (NHSE) Covid grant funding during the year. This funding was available to hospices which demonstrated that they could maintain and increase capacity to support the National Health Service. The Trustees were particularly grateful for the continued support of ellenor's 333 active volunteers,who increased their volunteer work activities for the charity after pandemic restrictions were lifted.

With continued uncertain and challenging times ahead, ellenor is better placed to continue to demonstrate the impact the charity makes in the local community and improve the care of patients and families facing life limiting illnesses. The Trustees are confident that the charity can do this with the continued support of the local community and the increasing collaborative relationships with local health providers.

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58,321
370 contacts made across
new referrals all community teams
during the year (33% more than
2021)
5,047
total patient interactions
across all our services (6%
more than 2021)
86% 89%
died in their preferred place admitted in 48 hrs
of care (target: 80%) (target: 85%)
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ellenor Annual Report and Financial Statements 2022 | Trustees Annual Report

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Our Vision, Mission and Values

PEOPLE ARE AT THE HEART OF EVERYTHING WE DO

Our Vision

We are dedicated to enabling every person we support to have a seamless and personal experience, that meets their needs and wishes.

Our Mission

We are respecting patients’ dignity and

independence, providing quality care and supporting them and their family to live with a life limiting illness in their home or our hospice.

Our Values

We are inclusive

We work together with you, your families and our community to ensure your care is based on what you tell us is important to your individual needs and preferences.

We are caring

We are caring with every interaction. Our team of professionals are employed and trained to the very highest standards. It is why we care.

We are focused

We are focused on providing high quality services with compassion.

Trustees Annual Report | ellenor Annual Report and Financial Statements 2022

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How We Delivered Our Care During The Year?

Hospice @ Home

We provided care to adults, assisting, and supporting them and their families to enable them to remain at home in line with their place of choice wherever possible. Support is available 24 hours a day 365 days of the year.

Care Home Support

1,494 face to face contacts by our Care Home Support Service

We offered support to care home residents, their families, and the staff to reduce unnecessary admission s to hospital and support end of life care in their place of choice.

Children Services

For children in Dartford, Gravesham and Swanley, we provide d clinical nursing support working with children’s families to provide care at their place of choice, which is often their own home. This mean t the children receive d care in familiar surroundings. In addition, we provide R espite and W ellbeing services, which include d Play Therapy, Music Therapy, Counselling and Bereavement support in the boroughs if Dartford, Gravesham,Swanley and Bexley .

Wellbeing Services

We provided support and advice for patients and families using a holistic approach (the whole person) to promote wellbeing, offering counselling, therapies, and spiritual support with the aim of reducing fears and anxieties.

29%

increase in emergency admissions to our Inpatient Ward

3,614 visits by our Hospice @ Home Team

Outpatient and Living Well Services

Our team supported patients t o make the most of life and to overcome any concerns such as managing symptoms. We provided a variety of therapies to offer relief, enable rehabilitation and to give a chance to meet others.

1,619 counselling sessions provided.

Inpatient Ward

Our Inpatient Ward at Gravesend provided specialist inpatient care for people from the age of 14 upwards, in a reassuring and peaceful environment. The ward offered symptom control, crisis respite and end of life care. The aim of the Inpatient Ward is to provide a home feel for patients and their families and provide support and advice as well as hands on clinical care. During the year we continued to support local hospitals with COVID recovery step-down patients, before their transition back to their homes or care homes.

2,921 telephone and online contacts

3,673 number of contacts made by our Children Services

ellenor Annual Report and Financial Statements 2022 | Trustees Annual Report

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Chair and CEO Report

Welcome to our 2022 Annual Report, which reflects on our achievements over the past year whilst looking forward to our priorities for the coming year.

The work of ellenor could not be delivered without the remarkable staff and volunteers, and the support of the community. We would like to thank the staff for being agile in responding to the challenges and changes and being compassionate to each other during this difficult time. We would also like to thank the 333 volunteers, who returned from lockdown and helped us to continue to provide care to the community that we serve to enable us to continue helping thousands of families facing life limiting illnesses each year.

It would be very difficult not to mention Covid and the impact the pandemic has had in terms of our income and service provision. As with our 2021 financial year, COVID-19 has continued to disrupt our ability to generate income, challenged staffing levels, and increased the workloads of all clinical and support services colleagues. However, it has also brought the opportunity to adapt and try new and innovative ways to deliver high-quality and sustainable palliative care services to our community.

Further, on behalf of all the staff and the volunteers, we would like to thank our community for continuing to support the hospice in all sorts of ways but , in particular, by providing the much-needed funds to enable ellenor to continue to deliver its services.

Our wide range of hospice services has undoubtedly eased the pressure on our local acute hospital, primary care, and community nursing services at a time when all health and social care providers experienced unprecedented demand. We are proud that we are able to support our local health providers and work in greater collaboration with similar organisations in our area. Our income generation activities, though working in an unpredictable and post-Covid environment, managed to fall within expectation and we are pleased that our retail income finished the year strong ly , despite further disruption to the High Street and the need to close two shops during the period. We have high hopes to see our retail department go from strength to strength in the years to come.

At the end of the year, Vikki Harding stepped down as CEO and Ben Alonso was appointed as Interim CEO whilst a recruitment process was undertaken for a new CEO . We would like to thank Vikki for all the hard work she put in and the stellar way she managed the hospice during the very difficult times it faced over the pandemic. We also welcome Stephanie Barwick to ellenor , who starts on 1st September 2022. This will also be Roger Wedderburn-Day’s last report as Chair as

his term as a trustee expires in 2023. Roger would like to thank his fellow trustees for all their support and help during his tenure and he looks forward to seeing ellenor thrive under the leadership of its new CEO.

During the year, we have continued our regular and detailed discussions with local Clinical Commissioners ' leads regarding the level of statutory funding the charity receives, which is below the national average that hospice s receive. We beg a n high-level discussions with other hospices in Kent & Medway as well as other healthcare providers, to explore opportunities for collaboration and service delivery in palliative and end of life care.

Roger Wedderburn-Day Vikki Harding Ben Alonso Chair of Trustees Chief Executive Officer Interim until 31 March 2022 Chief Executive Officer from 1 April 2022

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How Did We Improve Our Care During The Year?

Identify a clear vision, mission and 3-year strategic plan (2022-25)

What we said we would do?

From the learnings and impacts that the pandemic had on our charity we said we would review our care service provision in order to ensure it is aligned to the local health economy and meets our community needs. The outcome of this review, in conjunction with our Board and Senior Managers, resulted in revised ellenor vision and mission statements and a new 3-year strategic plan to meet the future needs of the community whilst maintaining financial sustainability.

What impact did we make?

After the third UK lockdown at the beginning of the year, the charity, in conjunction with patients and their families, we started the transitional process of moving some on-line care services to more face-to-face contacts and home visits . The impact of this resulted in an increased number of home visits by our Adult Hospice at Home team to 3,614 for the year, an increase of 48% on the 2,441 visits in the previous year. Despite the continuation of Covid restrictions in care homes we supported in our community, our Care Home Support team attended 1,494 care home visits during the year, an increase of 10% in comparison to 2021. Of the 1,223 hours of support provided by our Living Well services during the year, 59% were face to face with patients, compared to 0% in 2021.

Providing support to the wider health system by increasing our bed capacity helped the local acute hospital to provide care for those patients requiring it. During this time, our Inpatient Ward saw an increase in emergency admissions by 29% in the year.

However, despite some successes in increasing face to face care activities post Covid, the year remained challenging for our hospice patients and our care activities. Therefore, a transitional, cautious and phased approach was taken to build patient and family confidence. This Covid-induced hesitant feeling in our local community, along with growing economic uncertainty, had an impact on our voluntary and trading income generating and support activities.

With the Trustees accepting that the year remained a transitional, uncertain year for the hospice, and with a new CEO being appointed, it was agreed that the setting of a new three-year strategic plan should be postponed to the following year. By this time, it is envisaged that better understanding of our community needs, resource and financial capacity will increase certainty in the assumptions underlying the plan. Work did, however, get started on reviewing and revising our Vision and Mission, following input and feedback from ellenor’s numerous stakeholders.

In collaboration with Dartford, Gravesham and Swanley Health frailty service and Covid Response teams, we ensured patients identified as palliative and/or end of life received care that is joined up and provided the best support to patients and families. Throughout the year, we continued to provide inpatient beds to support local hospitals with Covid recovery step-down patients before their transition back to their homes or care homes.

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Sustainability of income and growth to strengthen our financial position and ellenor’s future

What we said we would do?

What impact did we make?

In a continued challenging year for our fundraising team, we reviewed all areas of income generating activities to improve net income performance. This remains a priority objective for ellenor to enable it to become more financially stable in subsequent years with Covid support funding ending and the impact of rising inflation adding pressure to the operating costs. This is important as during the year, excluding Covid funding, the charity became more dependant on voluntary and trading and investment activities to generate income. Excluding non-recurring Covid funding and sundry other income, 7 5 % of our total income came from these activities in comparison to 6 7 % in the previous year.

To support this objective investment was made in a lottery activity and rationalisation of our charity shops, with the closure of 2 shops during the year. This enabled us to increase overall net income from voluntary and trading income by £0.58m. This was mainly due to improved net performance in our l ottery and charity shops. However, improving net income in voluntary income activities remained extremely challenging with voluntary and legacy income declining by £0.35m compared to the previous year. ellenor remains reliant on increasing local community support particularly with some difficult increasing economic pressures ahead.

During a transitional year for a care services, as we increased more face-to-face patient contacts, post pandemic, we took this opportunity to further review our staffing mix in our various care activities. Although this was hampered by the ongoing risks of Covid variants impacting on how quickly we could open up more face to face activities, the charity did well to efficiently manage 3,706 new referrals during the year. To support this, we established Operational Leads in all care departments. The recruitment of qualified clinical staff with palliative expertise was extremely challenging in a competitive labour market which impacted all local health providers. To support this we implemented a clinical pay review during the year to ensure we remain competitive.

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Throughout the year we worked with local health providers to improve our collaborative working. We have been a key player in the development of a frailty pathway within the Dartford, Gravesham and Swanley area, collaborating with DGS health, Virgin and Dartford and Gravesham NHS trust, to ensure a clear pathway to support patients with these complex needs.

ellenor continued with a partnership with Supportive Care UK to provide support and education to our medical and nursing team from p alliative care c onsultants by virtual means . T his started just before lockdown and was a leap of faith for both organisations at the time, but has successfully continued to strengthen our expertise and has proved beneficial to clinicians and patients alike.

this free to all health and Social care professionals across Kent and Medway, giving more people the confidence to provide symptom management and end of life care for their patients. We were then joined in this effort by other hospices across Kent and are part of a collaborative looking at establishing this long term across Kent and Medway. At the end of year we obtained funding to further strengthen our training, working with other hospices, on heart failure training and a Recommended Summary Plan for Emergency Care and Treatment (ReSPECT), as Kent and Medway wide initiative.

Inflationary pressures on the charity made it difficult to achieve cost efficiencies during the year, especially as we opened to increased activities post pandemic. Despite this increased activity, the charity worked hard to control costs .

We instigated a training programme covering a variety of aspects of palliative and End of Life care, including Bereavement and management of breathlessness and offered

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Develop and commence an Equality Diversity and Inclusion (EDI) strategic plan to address the equality and diversity shortfalls within the organisation

What we said we would do?

During the year we launched various end of life care surveys aimed at our local groups. EDI data was gathered on these to understand their views on death and dying. We also captured data on different cultural beliefs to understand if we need to adjust our care services to provide more support for these particular groups.

We have embedded unconscious bias training as part of our mandatory training modules for all staff. As recruitment is one of the four pillars of success in our EDI Strategy, we will be focusing heavily on this area in the following years, committing to additional inclusive recruitment training for managers, a candidate accessibility review, hospice open days and staff shadowing opportunities. During a challenging year, it has been slower than anticipated in obtaining user groups' feedback to provide a more informed EDI strategy plan. Despite this, we have made some good progress during the year to be able to finalise our strategy and devise an action plan to ensure that we start to address the equality and diversity gaps at ellenor.

What impact did we make?

We set up an EDI Steering Group which met twice during the year with more meetings planned in the following year. To support this EDI project and develop strategy, ellenor has established strong relationships with various organisations and advisory bodies representing several local groups.

We continued to work with members of the LGBTQ+ community, our local Sikh population, the Traveller, Gypsy and Roma community, those with physical and learning disabilities, and our local homeless community. Representatives from these community groups attend our EDI Steering Group.

We aim to continue our development of bespoke outreach pathways with various minority groups including (but not limited to) those mentioned above, as we deliver our EDI Strategy over the coming two years. We have also received[media interest in our work so ] far with Hospice UK, who wish to film and showcase our EDI project.

Trustees Annual Report | ellenor Annual Report and Financial Statements 2022

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Innovation to increase productivity and efficiency whilst maintaining robust governance and best practice

What we said we would do?

What impact did we make?

With the challenging conditions post pandemic during a transitional year, it was difficult to obtain enough user engagement to fully understand how we can further develop our service delivery. User feedback will continue to be gathered over the next year as we open services more fully.

To aid collaboration in our support services we worked closely with Pilgrims hospice to further expand our Health & Safety expertise and compliance during the year. This enabled us to have an independent audit of Heath & Safety policies and procedures. It also supported the reduction of costs, as well as increasing expertise, in this area.

We continued our commitment to further modernise the hospice facilities. An exciting plan for a new, modern Wellbeing Centre project will expand ellenor’s existing hospice building located in Gravesend, Kent with a range of improved facilities for patients, families, staff and volunteers.

Once built, the Wellbeing Centre will offer improved outpatient facilities, with extended space for play therapy and counselling, multi-purpose rooms for a whole range of activities and quiet spaces for patients and their families.

In addition, the new space will serve as a facility for training and education on palliative and end-of-life care for health and social care professionals. To enable a start to construction, during the year our internal project team worked hard with an experienced external design team to complete the design stage of the build to further ensure the development meets community needs, The project has a detailed programme to start construction by October 2022. To support financing of the development, the Board of trustees approved the designation of a further £2m of reserves to this development in conjunction with capital appeal monies received (2022: total of £3.5m).

Throughout the year we continued our work to implement the next stage of our IT strategy to improve the efficiency of delivering our care services in our patients' homes, in the hospice and working with other health providers. We started work to implement a new care database (EMIS) which will enable us to have improved care information sharing with GP practices. We further developed our Office 365 capabilities, successfully implementing Teams to further aid communication and agile working. We further modernised our staff equipment to aid more efficient working.

Working with patients, families and health & social care professionals, we reviewed and redesigned our website to improve the ease of access to information on the range of services we provide, and to explain more clearly why and how people can support us.

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Your Voice - Patient And Family Feedback

Wellbeing

"Our experience would lead us to recommend that anybody being offered this service should grab the opportunity with both hands"

Hospice @ Home

"They ( ellenor ) just can't do enough - they're always there. I can't explain how much that means to me. Just knowing someone's there to help me"

Inpatient Ward

"To all the lovely and wonderful doctors and nurses of ellenor hospice this is a very large thank you to each and everyone of you for your dedicated love,care and support during my stay here as it really has been second to none from angels in uniform complete with glittering halos.

I say this in a very compassionate way because that is how its meant when one is taken care of at an individual level rather than as a number. Your first care and attentiveness is also so second to none it is often beyond reach where a simple thank you really isn't enough, meaning that love, care and support can be seen as a personal thing which is better still as seeing you all is very special all day long.

If i may introduce myself as i speak as i find type of guy then this is it because no matter what ive done or where i have been i can truthfully say with hand firmly on heart, i have never known such touching kindness. Also in reality, i may only have been here in excess of a month but long enough to know you all for your happy smiling faces and friendly little chats so may i say i am going to miss you all from the guy who loves you all for the good you do.

Finally, its all the thank yous in the world for being here for me in my times of illness and need and bringing me back to wellness again. Godbless you all."

Trustees Annual Report | ellenor Annual Report and Financial Statements 2022

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Play Therapy

"Very useful to my child, he is more confident. before he was in past struggling with his grief, now more open up about his feelings. You guys are doing very well, just keep it up."

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Hospice @ Home

"Thank you for the wonderful care provided to our mother. She seems to be so much different now, we have tried to do as much as possible to that end. You pulled her back and treated her with dignity and worked wonders. We will always be grateful to you all. We will keep you all in our prayers all the staff and patients, as you tirelessly work for the good of all."

Children Services

"A big thank you to everyone who looked after my daughter, you made her last few weeks as comfortable as it could be. From a heartbroken mum."

Trustees Annual Report | ellenor Annual Report and Financial Statements 2022

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Objectives And Plans For Next Year

The following plans for 2022-23 reflect a strategy to concentrate on priority areas and to improve efficiency to enable us to continue to demonstrate impact in the delivery of our vital care services in a sustainable manner. These strategic objectives represent that our patients, their families, supporters, staff, and volunteers are at the heart of everything we do.

Identify a clear vision, mission, and 3-year strategic plan (2023-26)

Background

Start the construction of our exciting hospice development to further enhance our care service facilities.

Background

The Board made the decision to postpone the setting of a longer-term strategic plan until early 2023. This decision was also considered in light of the requirement to recruit a permanent CEO during 2022 following an interim CEO post. The Board were pleased to announce the appointment of Stephanie Barwick as permanent CEO from 1st September 2022.

What we will do?

With the appointment of a permanent CEO in September 2022 gives the Board, along with the Senior Management team, the opportunity to have a thorough review the organisations activities , post pandemic and in light of challenging future economic conditions. Following a current strategic review, a longer-term strategy plan will be formulated to meet the future needs of the community whilst maintaining financial sustainability. This could result in a revised ellenor vision and mission statement.

We are excited by our plans for a new, modern Wellbeing Centre. This project will expand ellenor’s existing hospice building located in Northfleet, Kent, with a range of improved facilities for patients, families, staff and volunteers. The new Wellbeing Centre will enable ellenor to enhance the support for people with life-limiting conditions, such as Heart Failure, Dementia, Muscular Dystrophy, Parkinson’s and Motor Neurone Disease (MND) to live the best they can with the time they have left.

What we will do?

To support achieving this objective, we will work during the coming year in the following areas:

ellenor Annual Report and Financial Statements 2022 | Trustees Annual Report

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Further develop & commence an Equality Diversity & Inclusion (EDI) strategic plan to address the equality & diversity shortfalls within ellenor

Background

EDI is a continued area of work that ellenor needs to address and continues to be a key objective i n improving its equality, diversity, and inclusion. The importance of this project has been recognised by the Board and approval has been granted to extend this project so that objectives agreed to date are embedded into ellenor's culture .

What we will do?

To meet this objective, we will start working in the year on the following:

Access:

Recruitment:

Culture:

Trustees Annual Report | ellenor Annual Report and Financial Statements 2022

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Review our service delivery and support functions to develop further cost efficiencies .

Background

This pandemic demonstrated our need to quickly adapt our work across all our teams to find new ways of efficiently delivering our care services and raise funds. As we further open up our activities post pandemic, we want to evaluate how we can grow our reach, support this growth and raise more funds more efficiently. This is of particular importance in the light of increasing difficult economic conditions that are likely to increase costs. Also we need to continue these activities whilst implementing a major hospice build project.

What we will do?

To achieve this, we will work on the following objectives:

ellenor Annual Report and Financial Statements 2022 | Trustees Annual Report

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Structure, Governance and Management

ellenor is a charitable company limited by guarantee (company number 06302132), incorporated on 4 July 2007, and registered with the Charity Commission, in England and Wales, as a charity on 9 November 2007 (charity number 1121561). Our registered office is at Coldharbour Road, Gravesend, Kent, DA11 7HQ. We are governed by our Articles of Association which were updated in 2017. The hospice care and support we provide is completely free.

ellenor is an independent charity working in a wide and diverse region of Northwest Kent and Bexley. ellenor group has two subsidiaries. Ellenor Lions Hospices Trading Limited (registered number 5985820) which conducts the trading elements of the charity, mainly through the sale of new goods from ellenor ’s charity shops. The other subsidiary is Ellenor Lions Hospice Lottery Company Limited (registered number 03116416). The principal activity of this company is to raise funds for the charity through the administration of a lottery.

Any distributable profits of the two subsidiary companies are gift aided to the charity at year end.

How are we governed

ellenor is ultimately governed by its Board of Trustees which meets on a quarterly basis to set and review ellenor's strategy and oversee its management. The Chief Executive is appointed by the Board and has delegated responsibility for the day-today management of ellenor with the support of the Executive Management Team. The Board of Trustees is fully committed to the financial stewardship, quality, and safety of ellenor .

ellenor has a well-established governance structure, with members of the Board having an active role in ensuring that the hospice provides a high-quality service in accordance with its Statement of Purpose. Under ellenor ’s articles, the Board has delegated some of it powers and responsibilities to Committees.

The minutes of all Committee meetings held are shared with all Board members via papers submitted at each Board meeting to ensure full transparency of this delegated authority. The Board and each Committee meeting have Terms of References that are annually reviewed to ensure they are fit for purpose.

Committees

All committees are chaired by a trustee with a quorum of at least two trustees in attendance at every meeting. The committees are well established to monitor and scrutinise services. The membership of Committees also consists of Senior Management and advisory expertise in the form of honorary members where appropriate.

The regular committees held each quarter are:

ellenor 's risk register is an agenda item at each Board meeting, as it was agreed this is an area where all Board members need to have more detail. A member of the Board scrutinises the detailed risk register with the CEO and Company Sectretary, and then presents back to the Board at each meeting.

Trustees

ellenor ’s trustees are the directors of the hospice for the purposes of the Companies Act 2006. ellenor provides trustee Indemnity Insurance cover each year. Trustees must retire from their office at their third anniversary. Retiring trustees can be reappointed for a second three-year term and, but only under exceptional circumstances approved by the Board, for a third term.

ellenor ’s trustees and executive team regularly review the skills and capabilities of the Board. Various recruitment methods are used to ensure the charity attracts a good selection of candidates. One of the priority targets in recruiting new trustees is to ensure the Board reflects the diversification

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and ethnicity of the local community. This objective will form part of the Equality, Diversity & Inclusion Strategy that is being project led this coming year. The trustees also aim to ensure the Board has a broad range of skills and experience to scrutinise and advise on ellenor ’s wide range of activities.

Prior to election, new trustees are given an induction and serve a probationary period. The trustees are managed by the Chair, Roger Wedderburn-Day, and he is supported by Kerry-Jane Packman as Vice-Chair. During the year, there were twelve trustees serving on the Board and eleven by the end of the year. Another trustee was appointed post year end. To ensure continuation of good governance and to add new member scrutiny, the charity will embark on a trustee recruitment campaign in the year 2022.

Trustees serving during Roger Wedderburn-Day (Chair)
the year Bryan Harris
Jan Stanton
Kerry-Jane Packman (Vice-chair)
Ann Barnes
Mary Kirk (Resigned 6 September 2021)
Peter Shotter
Shaminder Bedi
Nigel Springhall
Vicky Heath
Manjit Atwal
Mac Cheema		 (Appointed 22 November 2022)
Trustees serving post Karen Griffiths (Appointed 25 May 2022)
year end
Company Secretary Tim Hammond
Key Management during
the year		 Chief Executive
Director of Care		 Vikki Harding
Linda Coffey
Director of Income Generation Ben Alonso
Director of Finance & Resources Tim Hammond
Director of Human Resources Natalie Webb
Key Management
changes post year end		 Interim Chief Executive
Director of Projects
(Hospice building development		 Ben Alonso
Vikki Harding
lead)
Appointment of permanent Chief Stephanie Barwick
Executive
(starting 1 September 2022)

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Pay policy

We seek to ensure that all employees receive appropriate pay and reward for their work, taking into account the financial resources available. All decisions about pay are taken according to the principles of equal pay for work of equal value. We aim to reward people fairly and equitably and to recognise individually the contribution which each person makes towards our success. We want to ensure accountability, transparency, objectivity, and equality of opportunity. Independent external benchmarking studies are sought to compare market conditions.

Money available for pay reviews takes into consideration ellenor 's financial position during the year and its likely financial position in subsequent years via the it s budget approval process. The budgeted pot of money available to fund pay proposals is approved by the Board and recommended by the People Committee.

The Board delegates responsibility for individual non-executive pay proposals to the executive team and the head of the department for the senior manager of the relevant team.

The Board delegates responsibility for setting executive pay to a panel of the People Committee comprising trustees only with external benchmarking provided by the HR Director and/or independent external reviews commissioned.

With Board approval, during the year, work began on amending our current pay policy to ensure staffing pay structures remain fair and competitive. The objective of any changes is to ensure ellenor continues to remain attractive in recruiting and retaining staff, particularly clinical staff where there is currently a national shortage. During the year we reviewed our qualified clinical staff pay structure , benchmarking against other hospices and local health providers to ensure the hospice can continue to attract and retain clinical expertise in an increasing competitive local labour market. The Board then approved the implementation of this pay structure.

To support good governance and best practice, the SIRO has support from a Caldicott Guardian (Director of Care). To further improve our governance practices and policies, we employ a Head of Governance, Compliance and Projects to ensure we have a dedicated lead in these important areas for the charity. This role also incorporates the responsibilities of the Data Protection Officer and the Health and Safety lead.

An Information Governance meeting and a Governance and Compliance Panel had monthly meetings with participation from a diverse cross section of department leads to discuss in detail ellenor 's day-to-day operational governance of the charity and create an action list to make further improvements.

Fundraising Regulation

The Finance and Income Generation Committee and the Board of Trustees have oversight of ellenor 's compliance with fundraising regulation and receive regular reports on this matter. ellenor continue s to adhere to the code of fundraising practice issued by the Institute of Fundraising and is a paid-up member of the new Fundraising Regulator.

During the year, no supporters contacted ellenor via the fundraising preference service, to ask for their contact details to be removed.

Internal Audit

ellenor regularly undertake audits of its services against national or local standards. All the local audits are taken to monitor and to improve clinical practice. These audits include medication and patient falls audits and are detailed in our Quality Account.

Governance

The Board oversees the stewardship and monitoring of the ellenor ’s governance systems, processes, and reporting. The Board delegates the day-to-day governance to the Senior Information Risk Owner (SIRO). SIRO forms part of the CEO’s responsibilities.

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Care Quality Commission

The CQC reported:

As a health provider we are required to be registered with the Care Quality Commission (CQC) and are currently registered to carry out the following regulated activities: Treatment of disease, disorder or injury.

The Care Quality Commission has not taken any enforcement action against us during 2022-23. We have not participated in any special reviews or investigations by the CQC during this reporting period.

Our last on-site inspection by the CQC was announced and carried out on 25-27 July 2017. During the pandemic the CQC suspended the routine inspection program. This suspension continued for the 2022 year. Instead, the CQC currently uses a mix of on-site and off-site monitoring.

During the year 2022, the CQC conducted off-site monitoring inspections at various monthly intervals throughout the year. The last inspection was the 9th December 2021 , as a result the following wording has been added to the CQC website in relation to ellenor :

“We carried out a review of the data available to us about Ellenor Gravesend on 09 December 2021. We have not found evidence that we need to carry out an inspection or reassess our rating at this stage.

This could change at any time if we receive new information. We will continue to monitor data about this service.” (Care Quality Commission)

We received an overall rating of Outstanding.

Is the Service Safe? Good
Is the Service Effective? Good
Is the Service Caring? Outstanding
Is the Service Outstanding? Outstanding
Is the Service Well-led? Good

The last CQC inspection full report can be found at: www.cqc.org.uk/sites/default/files/new_reports/INS2-2810386868.pd

ellenor Annual Report and Financial Statements 2022 | Trustees Annual Report

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Statement Of Trustee’s Responsibilities

The trustees, who are also directors of ellenor for the purpose of company law, are responsible for preparing the Trustees’ Report and the accounts 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 and not approve the financial statements unless they are satisfied that the financial statements give a true and fair view of the state of the affairs of the Charity as at the balance sheet date and of its incoming resources and application of resources, including income and expenditure, for the year then ended.

In preparing financial statements which give a true and fair view, the trustees should follow best practice and:

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

The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website.

Each of the trustees, who held office at the date of approval of this Trustees’ Report, has confirmed that there is no information of which they are aware which is relevant to the audit but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditors are made aware of such information.

Audit

Haysmacintyre LLP have expressed their willingness to continue in office, and will be deemed reappointed for the next financial year in accordance with section 487(2) of the Companies Act 2006, unless the company receives notice under section 488(1) of the Companies Act 2006.

The Annual Report incorporating the Strategic Report, Directors’ Report and Trustees’ Annual Report was a pproved by the trustees on 12 September 2022 and signed on their behalf by:

A R Wedderburn-Day

Roger Wedderburn-Day Chair of Trustees

Trustees Annual Report | ellenor Annual Report and Financial Statements 2022

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Risk

During 2022 we reviewed our risk register reporting and process to ensure it meets best practice and good governance. Following this exercise, we updated our reporting format and processes to a single Board risk register derived from risk registers under each directorate.

The trustees regularly review the risks faced by ellenor to develop proportionate controls and deliver on the ellenor ’s strategic aims. We operate an overarching working Board Risk Register for the group, supported by sub risk registers under each Senior Management Director. These are regularly appraised, and the level of risk is assessed by the trustees and Senior Management Team. The Risk Register follows the Charity Commission CC26 guidance and principles on managing risks.

The trustees have reviewed ellenor 's financial position and financial forecasts, considering the levels of investment reserves and cash, and the systems of financial control and risk management. The trustees believe that ellenor is well placed to manage operational and financial risks successfully. Accordingly, they consider that ellenor has adequate resources to continue in operational existence for the foreseeable future as a going concern. The trustees considered the increasing challenging economic conditions and the funding of the hospice development when coming to this consideration.

During the year the major risks identified and reviewed by the Trustees included:

Risk – Unable to recruit or retain key staff and volunteers

To ensure we can continue to efficiently operate our wide range of clinical services, it is important that we can retain and recruit qualified clinical and support staff with palliative expertise. Post pandemic the local labour market continued to be challenging and extremely competitive, reflecting a national shortage of qualified trained clinical staff. Later in the year this was ex acerbated by a growing cost of living crisis adding further pressures.

during the year. However, this risk remains a continued challenge and we will continue to monitor closely to see if further measures are needed. This will include listening to staff and monitoring staff morale, particularly how our staff and volunteers are impacted by the rising cost of living.

Although a challenge during the year, we continued to review our clinical strategic resources to look at ways we could proactively reduce the need for some agency staff. This included development training initiatives for qualified clinical staff to further mitigate this risk in the future.

Existing controls – A key objective, to mitigate these risks , is to ensure the ellenor ’s pay structure remains competitive. To support this, during the year, the Board approved a new pay structure for qualified clinical staff following a review and a benchmarking exercise against local hospices and health providers. This change, along with revamping our recruitment process to maximise the attractiveness of working at ellenor , had some success

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Risk – Changes to the environmental conditions - Brexit, Inflation, minimum wage, pensions, health pandemics makes it difficult to maintain services .

Along with increasing demand for our services, increasing inflation in the local economy has a risk of adding further pressures maintain services as our operating costs are likely to rise.

Existing controls – although we were pleased by the continued funding support from our local Clinical Commissioning Group (CCG), the funding we received during the year did not match the rising costs of delivering those contracted services. We are therefore increasingly reliant on the generosity of our local supporters, as Covid funding support ends. To raise the awareness of this issue, we continued to network with other local hospices and the CCG to have a collective voice to highlight this funding gap.

Our F undraising and Retail teams worked hard during the year to improve monies raised for the hospice as we opened up to more income generating and trading activities post pandemic. We continued to invest in marketing activities to raise awareness of the impact we make in our local community and the importance of continued local support.

As care activities increased post pandemic, we continued to review and remodel these activities, and the resources needed to deliver them, to improve the reach of these services more cost effectively. This work will continue in the following years.

We continued to invest in an IT strategy to further modernise our IT infrastructure to support more agile working, improve information sharing and increase the efficiency of administration. The initial work began to replace our care database and this work will continue in the following year when we aim to implement this system.

We will continue to ensure any known future inflationary government proposals form part of our budgeting and financial planning process and are robustly appraised via our Finance and Income Generation Committee.

Trustees Annual Report | ellenor Annual Report and Financial Statements 2022

24

Risk – Increased demand for our services and lack of inadequate facilities puts pressure on maintaining services efficiently.

As people are living longer and with more complex diseases and conditions, there is a need to invest in our facilities to support our care services to meet this growing need. With the current facilities we are increasingly finding it more challenging to flexibly support the range of Outpatient service we offer to our patients and their families. Added to this we have temporary staff accommodation that needs to be replaced with more modern offices to support improving collaborative working , and improve our ability to r ecru it and retain staff

Throughout the year the internal development project team worked closely with an external design team, with hospice development expertise, to ensure the completed extension and refurbishment meets our local palliative care strategic needs. This work will continue in the following year at which point we will be ready to start construction.

These new multi-purpose spaces will allow us to expand and grow the large variety of our already popular groups such as seated exercise, music and gardening, whilst introducing new activities for our patients, their families and the wider community.

To support this project, along with Capital Appeal monies, raised and to be received, the Board have approved designated reserves totaling £3.5m .

Existing controls – during the year we continued to work hard to complete the design of our exciting new, modern Wellbeing Centre. This project will expand ellenor ’s existing hospice building located in Northfleet, Kent with a range of improved facilities for patients, families, staff and volunteers.

ellenor Annual Report and Financial Statements 2022 | Trustees Annual Report

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Financial Review

At first glance, financially, the year 2022, seems a successful one for the charity, in comparison to the previous year, with an increase in total income (£ 3 . 1 m) and an increase of funds (£ 6.3 m). We were certainly successful in increasing charitable capacity, and , with this the ability to attract further Covid support funding from National Health Service England (NHSE). Our trading activities also improved performance, as we fully opened shops and increased lottery activity post pandemic. Trading activity income increased by£1.0m against the previous year, £0.8m from our retail shops and £0.20m from l ottery.

However, 2022, also saw a decrease in income from local authority contracts of £0. 18 m (note 3), despite the increase in spend on our adult services of £0.71m (note 4), as we started to increase care service activities as the pandemic became less restrictive. 2022, also saw a drop in donations income received by £0. 12 m (note 2).

ellenor continues to be grateful and heartened by the generosity of support in our fundraising activities from our local community. Our fundraising team had a challenging year increasing activities in a competitive and increasingly economically demanding fundraising market.

Excluding non-recurring Covid support, ellenor is becoming increasingly reliant on its fundraising , trading and investment activities to fund any future increased charitable activity and manage inflationary costs, these activities generated 7 5 % of total income in 2022 (2021: 6 7 %).

A national shortage of qualified trained clinical staff, in the local labour market, required investment in a pay restructure for ellenor to remain competitive, to ensure it retains and recruits clinical expertise. An objective to significantly reduce agency costs during the year was less successful than we had targeted due to a national shortage of staff. This along with other inflationary pressures resulted in an increase in staff costs during the year despite a fall in the average number of employees (note 9) .

Overall, the Trustees and Senior Management Team were pleased that the increased level of unrestricted reserves increased during the year .

HIGHLIGHTS 2022

£1 3 . 4 million in total income received in the year. Largely due to increased oneoff Covid funding to ensure ellenor continues to have available bed and community capacity to support local health providers. Also increased trading activities, post pandemic.

£5.4m spent on charitable activities, an increase of £0.35m , as we continued to increase care services post pandemic.

An increase in unrestricted reserves to sustainably maintain and increase clinical services, mitigate inflationary pressures, and support much needed investment in the hospice building (£3.5m designated to this project)

This will help support future financial stability and much needed investment in facilities and infrastructure for the charity. However, increasingly difficult inflationary pressures impacting on the local community and a continued national shortage of qualified clinical staff are both likely to impact on ellenor 's charitable costs over the next few years.

We also face pressure from a growing cost of living crisis for our local supporters, and increased demand for our expert services from a growing local community. As a result the Board and the Finance & Income Generation Committee remain cautious and intend to keep monitoring levels of reserves.

The Trustees and Senior Management Team recognise there is much work to be done to continue to be financially stable with Covid funding ending and the need to invest to grow our charitable activities. This includes collaboratively working with local hospices and our local commissioning groups to demonstrate our care value and ensure our funding is matched to the core activities we deliver and rising inflation. We also need to keep raising awareness of the impact our services have on our local community and how we need their continued generous support more than ever.

26 Trustees Annual Report | ellenor Annual Report and Financial Statements 2022

Financial Performance

Overview

The Consolidated Statement of Financial Activities (SOFA) on page 34 reports a surplus for the year of £ 6 . 3 m (2021: surplus £3.5m). Our income for the year, excluding net gains on investments, totalled £1 3 . 4 m (2021 £10.3m).

Group total expenditure for the year was £7.2m up on last year’s total by £0.4m (2021: total expenditure £6.8m). The charity spent more money raised on charitable services than the previous year, £5.4m (2021: £5.1m). This was a combination of increased care service activities, as we opened up more capacity and face to face contacts post Covid and wage inflation in the wider market leading to a revised clinical pay structure.

Costs of raising income from fundraising and trading activities also increased, as we fully opened all shops through the year and increased investment in fundraising activities. Other costs also increased, mainly due to the increased maintenance and management of our investment properties.

----- Start of picture text -----
How was the money spent? £’000
Cost of voluntary income £504
Charitable activities £5,408
Shops and lottery £1,297
Investments and other £16
----- End of picture text -----

ellenor Annual Report and Financial Statements 2022 | Trustees Annual Report

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How we raised income?

How we raised income

£'000

Donations and legacies £ 4,580 NHS and local authorities £2,188 Shops and lottery £2,111 COVID grant funding £4,137 Investments and other £383

Excluding the non-recurring Covid grant funding received during the year , 7 5 % (2021: 6 7 %) of our total income comes from voluntary income, trading activities and investments.

In another challenging year for our local community and fundraising team, we were thankful by the continued support we received from our local supporters who raised £ 6 . 7 m (2021: £ 4 . 9 m) from donations, legacies and trading activities.

Including legacies, and excluding trading activities, for every £1 spent on fundraising £ 9 . 08 was returned to the charity. This increased return was partly achieved by our work to control the costs of generating voluntary income. This was p articularly pleasing during a period when raising funds remained challenging, competitive, and required more investment to increase the number of supporter participation events, as Covid restrictions were lifted. Total costs of generating funds decreased from previous year; the cost of generating voluntary income in 2022 was £504k (2021: £509k).

Improving the net return from investments in fundraising for the charity is a key objective. It is important we continue to demonstrate to our local community that the money they give is money well spent.

Income from Charitable Activities decreased by 8% by the end of the year, in comparison to the previous year, £2.2m (2021: £2.4m) despite the increase in clinical services in comparison to previous year. In 2022 ellenor had a patient caseload of 3,023 (2021: 2,981).

In 2022 for every £1 spent on fundraising* £ 9.08 was raised for the charity.

2 4 % Only 2 4 % of our income comes from the NHS and local authorities.

Trustees Annual Report | ellenor Annual Report and Financial Statements 2022

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Reserves

Policy

The trustees have agreed a reserves policy with a target to have enough free reserves to cover at least 6 months of the charity’s operating costs. The trustees believe this level of funds is necessary to ensure an uninterrupted provision of its charitable activities due to the unpredictable nature of the charity’s incoming funds.

Whilst the trustees and the Senior Management Team are confident that ellenor has good internal management of cash flow and budgetary processes, the timing of incoming funds into the charity is always difficult to predict due to their nature.

The trustees and Senior Management monitor and review cash reserves on a weekly basis. ellenor rel ies predominantly on incoming funds from voluntary income through fundraising.

Restricted reserves Designated reserves Free reserves

The receipt of certain elements of this type of income, such as legacies and general donations, can be hard to predict and forecast, therefore ellenor requires cash reserves to maintain working capital and smooth out these fluctuations

----- Start of picture text -----
2022 2021
£’000 £’000
Reserves Analysis
Total reserves of Group 1 6 ,7 85 10,520
Less: restricted reserves 1,095 1,237
Unrestricted reserves 1 5 ,6 90 9,283
Less: designated reserves 5,626 3 , 715
Free reserves 10 ,0 64 5,568
Months cover 1 6 . 7 9.9
----- End of picture text -----

ellenor Annual Report and Financial Statements 2022 | Trustees Annual Report

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Reserves during the year

At the end of the year, the charity had £1 6 . 8 m in funds, of this £1.1m is restricted and £5.6m are designated funds. £2.1m of these funds is designated to replace ageing, end of life fixed assets. The remaining £3.5m to support the first phase of developing our hospice building at Gravesend to improve our outpatient facilities. The remaining funds of £ 10 . 1 m were free reserves. These free reserves equated to 1 7 months cover of the total spend (2021: 10 months).

The Board recognise this level of free reserves is currently above our 6 months reserve policy. Trustees feel this level will be necessary, to have a level of contingency, that ensures the charity can sustainably navigate the likely increasing pressure on future charitable cashflows, namely:

30 Independent Auditor’s Report | ellenor Annual Report and Financial Statements 2022

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.

Opinion

We have audited the financial statements of ellenor for the year ended 31 March 202 2 which comprise the Consolidated Statement of Financial Activities, the Consolidated and Parent Charitable Company Balance Sheets, the Consolidated Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies.

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

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:

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

Other Information

The trustees are responsible for the other information. The other information comprises the information included in the Trustees’ Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated.

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/ group 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.

If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

ellenor Annual Report and Financial Statements 2022 | Independent Auditor’s Report 31

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent charitable company and its environment obtained in the course

of the audit, we have not identified material misstatements in the Trustees’ Report (which incorporates the strategic report and the directors’ report).

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

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

Auditor’s responsibilities for the audit of the financial statements

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

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.

Responsibilities of trustees for the financial statements

As explained more fully in the trustees’ responsibilities statement set out on page 22, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

32 Independent Auditor’s Report | ellenor Annual Report and Financial Statements 2022

Based on our understanding of the group and the environment in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to compliance with regulatory requirements of the Care Quality Commission, Charity Commission, employment law and health and safety regulations, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such the Companies Act 2006, the Charities Act 2011, the Statement of Recommended Practice for Charities (SORP 2015) (Second Edition, effective 1 January 2019), payroll taxes and VAT.

We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to recognition of income and management bias in certain accounting estimates.

Audit procedures performed by the engagement team included:

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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

Use of our report

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an Auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Siobhan Holmes (Senior Statutory Auditor) For and on behalf of Haysmacintyre LLP, Statutory Auditor :

10 Queen Street Place London EC4R 1AG

Date: 26 January 2023

ellenor Annual Report and Financial Statements 2022 | Independent Auditor’s Report

33

Consolidated Statement of Financial Activities

INCOME FROM:
Donations and legacies
Charitable activities services for
families facing terminal illness
Other trading activities
Subsidiary retail shops and lottery
Charity retail shops
Total trading activities
Investments
Other income – sundry
Other income – Covid grant funding
Total other income
Total income
EXPENDITURE ON:
Raising funds
Fundraising and trading activities
Charitable activities
Services for families facing terminal
illness
Other
Total expenditure
Net gains/(losses) on investments
Net movement in funds
Funds brought forward
Funds at 31 March 2022
Notes
2
3
8
4
11
7
 Restricted
Funds
£
160,385
755,945
-
-
-
-
-
4,089,899
4,089,899
5,006,229
-
5,148,440
-
5,148,440
-
(142,211)
1,237,338
1,095,127		 Unrestricted
Funds
£
4,419,849
1,432,516
935,449
1,175,757
2,111,206
48,406
334,467
47,584
382,051
8,394,028
1,801,286
259,841
15,786
2,076,913
90,224
6,407,339
9,282,385
15,689,724		 Total
2022
£
4,580,234
2,188,461
935,449
1,175,757
2,111,206
48,406
334,467
4,137,483
4,471,950
13,400,257
1,801,286
5,408,281
15,786
7,225,353
90,224
6,265,128
10,519,723
16,784,851		 Total
2021
£
3,835,553
2,370,469
711,547
394,994
1,106,541
30,554
304,663
2,664,657
2,969,320
10,312,437
1,709,255
5,059,732
9,594
6,778,581
448
3,534,304
6,985,419
10,519,723

The notes on pages 37 to 52 form part of these financial statements. The statement of financial activities includes all gains and losses recognised in the year. All amounts derive from continuing activities.

Full comparative figures for the year ended 31 March 2022 are shown in note 24.

34 Statement of Financial Activities | ellenor Annual Report and Financial Statements 2022

Consolidated and Charity Balance Sheet

Group Group Charity Charity
2022 2021 2022 2021
£ £ £ £
FIXED ASSETS
Tangible fxed assets 2,748,395 2,909,392 2,748,395 2,909,392
Investments 14,737 14,513 14,739 14,515
Investment Properties 1,500,000 552,500 1,500,000 552,500
TOTAL FIXED ASSETS 4,263,132 3,476,405 4,263,134 3,476,407
CURRENT ASSETS
Stocks of goods for resale 19,008 19,526 - -
Debtors 7,988,008 2,731,971 8,511,990 2,968,439
Cash at bank and in hand 6,843,260 4,848,094 6,289,760 4,579,871
TOTAL CURRENT ASSETS 14,850,276 7,599,591 14,801,750 7,548,310
CREDITORS: amounts falling due
within one year (2,328,557) (556,273) (2,266,741) (497,490)
NET ASSETS 16,784,851 10,519,723 16,798,143 10,527,227
FUNDS OF THE CHARITY
General funds 10,064,056 5,567,718 10,077,348 5,575,222
Designated funds 5,625,668 3,714,667 5,625,668 3,714,667
Restricted funds 1,095,127 1,237,338 1,095,127 1,237,338
TOTAL CHARITY FUNDS 16,784,851 10,519,723 16,798,143 10,527,227

The charity net movement in funds for the year ended 31 March 2022 is a surplus of £6,270,916 (2021: surplus £3,554,415)

The Accounting Policies and notes on pages 37 to 52 form part of these Accounts.

The Accounts were approved and authorised for issue by the Board on 12 September 2022 and were signed below on its behalf by:

A R Wedderburn-Day

Roger Wedderburn-Day Chair of Trustees

ellenor Annual Report and Financial Statements 2022 | Balance Sheets 35

Consolidated Statement of Cash Flows

2022 2022 2021 2021
Note Group Charity Group Charity
£ £ £ £
Cash fows from operating
actvities 20 2,051,326 1,766,049 1,945,922 2,188,901
Cash fows from investing
activities
Purchase of tangible fxed assets (56,160) (56,160) (45,072) (45,072)
Cash provided by (used in)
Investing activities (56,160) (56,160) (45,072) (45,072)
Increase (decrease) in cash and
cash equivalents in the year 1,995,166 1,709,889 1,900,850 2,143,829
Cash and cash equivalents at the
beginning of the year 4,848,094 4,579,871 2,947,244 2,436,042
TOTAL CASH AND CASH
EQUIVALENTS AT THE END OF
THE YEAR 6,843,260 6,289,760 4,848,094 4,579,871

36 Cash Flow Statement | ellenor Annual Report and Financial Statements 2022

Notes to Financial Statements

1. ACCOUNTING POLICIES

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:

Statement of Compliance

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

ellenor meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s).

General information

The charity is a private company limited by guarantee, incorporated in England and Wales (company number 06302132) and a charity registered in England and Wales (charity number: 1121561). The charity’s registered office is shown on page 18.

Preparation of accounts on a going concern basis

The Trustees consider there are no material uncertainties about the Charity’s ability to continue as a going concern. The review of our financial position, reserves level and future plans gives Trustees confidence the charity remains a going concern for the foreseeable future. A forecasted cashflow to 31 March 2025 and going concern statement have been prepared, appraised, and approved by the trustees at the Board meeting when these accounts were signed.

The going concern statement and cash flow forecasts included worst case scenarios, the investment needed to fund the hospice building development and likely impacts of inflation. The trustees also appraised contingency measures including where necessary, implementing an emergency appeal, a further continuation of cost efficiency savings over the next few years, maximising freehold investment potential and ensuring ellenor applies for all appropriate funding support available.

Although the increasing uncertainty in the UK economy make forecasting with a degree of certainty a challenge, the trustees are satisfied that the senior management’s future plans and measures will result in enough group reserves and investments to cope with the economic uncertainty.

As the near future currently remains volatile the Finance and Income Generation Committee will continue to monitor the going concern basis of the charity throughout the year. This includes working closely with the directors of Ellenor Lions Hospices Trading Limited to ensure the subsidiary returns to profits in the near future and taking appropriate action where it does not.

Income recognition

All income is recognised once the charity has entitlement to income, it is probable that income will be received and the amount of income receivable can be measured reliably.

Donations and legacies

Donations in cash and gifts are included in full in the Statement of Financial Activities when there is entitlement, probability of receipt and the amount of income receivable can be measured reliably.

Gifts in kind

Gifts in kind represent assets donated for distribution or use by the charity. Assets given for distribution are recognised as income only when distributed. Assets given for use by the charity are recognised when receivable. Gifts in kind are valued at the amount actually realised from the disposal of the assets or at the price the charity would otherwise have paid for the assets.

ellenor Annual Report and Financial Statements 2022 | Notes to Financial Statement 37

Notes to Financial Statements

Grants

Expenditure

Grants are recognised in full in the statement of financial activities in the year in which the charity has entitlement to the income, where grant conditions have been met, the amount of income receivable can be measured reliably and there is probability of receipt.

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required, and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:

Income from charitable activities

Income from charitable activities is recognised as earned as the related services are provided. Income from other trading activities is recognised as earned as the related goods are provided.

Investment income

Investment income is recognised on a receivable basis once the amounts can be measured reliably.

Retail grants (other income)

The government and local authorities announced several grants during the year in support of COVID 19 including the retail, hospitality and leisure grant fund (RHLG) and Hospice UK grant to maintain capacity. These grants do not have any performance related conditions attached and are designed to provide immediate financial support. Under FRS 102, a company is required to recognise income where there is evidence of entitlement, receipt is probable and its amount can be reliably measured. In the case of government grants, this is when there is reasonable assurance that the entity will comply with the conditions attaching to these grants and the grants will be received.

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

Expenditure is allocated to the particular activity where the cost relates directly to that activity. However, the cost of overall direction and administration of each activity, comprising the salary and overhead costs of the central function is apportioned based on staff time attributable to each activity.

Allocation of costs

Staff costs are allocated between direct charitable expenditure and support costs based on the time spent on these activities. Other costs are allocated directly to the relevant heading.

Operating leases

Rental charges are charged on a straight line basis over the life of the lease.

Entities became eligible for RHLG grants based on rateable value in April 202 1 . For the Hospice UK Grant this was based on care Capacity. As the charity met the eligibility requirements and intended to participate in these schemes, we can confirm that the total of these grants totaling £ 4 , 137,483 were recognised as income in the 2022 year.

Donated Goods

The Trustees consider that the valuation of goods donated for resale at the point of receipt is impractical, due to the high volume of low value items and the administrative costs involved in valuation. Goods donated for resale are therefore recognised in the accounts at the point of sale.

38 Notes to Financial Statement | ellenor Annual Report and Financial Statements 2022

Notes to Financial Statements

Investments

Investments are a form of basic financial instruments and are initially shown in the financial statements at market value. Movements in the market values of investments are shown as unrealised gains and losses in the Statement of Financial Activities.

Profits and losses on the realisation of investments are shown as realised gains and losses in the Statement of Financial Activities. Realised gains and losses on investments are calculated between sales proceeds and their opening carrying values or their purchase value if acquired subsequent to the first day of the financial year. Unrealised gains and losses are calculated as the difference between the fair value at the year end and their carrying value.

measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

Stock

Stock is valued at the lower of cost or net realisable value.

Realised and unrealised investment gains and losses are combined in the Statement of Financial Activities.

Fixed assets

Funds

Unrestricted funds are donations and other income receivable or generated for the objects of the charity.

Fixed assets are stated at cost or deemed cost (donated valuation at estimated fair value) less accumulated depreciation and impairment losses. Assets costing more than £500 are capitalised.

Depreciation is calculated to write off the costs of the fixed asset by equal instalments as follows:

Designated funds are unrestricted funds earmarked by the Trustees for particular purposes.

Restricted funds are those funds which are to be used in accordance with specific instructions imposed by the donor or trust deed.

Employee benefits

Short term benefits Short term benefits including holiday pay are recognised as an expense in the period in which the service is received.

Employee termination benefits

Financial instruments

Termination benefits are accounted for on an accrual basis and in line with FRS 102.

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently

ellenor Annual Report and Financial Statements 2022 | Notes to Financial Statement 39

Notes to Financial Statements

Pension scheme

Cash at bank and in hand

ellenor operates a defined contribution pension scheme for the benefit of its employees. The assets of the scheme are held independently from those of ellenor in an independently administered fund. The pensions costs charged in the financial statements represent the contributions payable during the year.

Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due. The indicative value of volunteers’ contributions is valued as their estimated average time spent helping the charity, at the charity’s minimum salary rate.

Cash at bank and cash in hand includes cash and short term highly liquid investments with a maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

Estimates and judgements

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Although these estimates are based on management’s best knowledge of the amount, events or actions, actual results ultimately differ from those estimates. The Trustees consider the valuation of investment property and the recognition of legacy income to be the areas of significant judgement.

40 Notes to Financial Statement | ellenor Annual Report and Financial Statements 2022

Notes to Financial Statements

2. DONATIONS AND LEGACIES
Donations
Legacies
3. INCOME FROM CHARITABLE
ACTIVITES
Department of Health
Local authority contracts
Other charitable income
Education and training
Restricted
Funds
£
160,385
-
160,385
Restricted
Funds
£
221,787
494,158
-
40,000
755,945
Unrestricted
Funds
£
1,391,166
3,028,683
4,419,849
Unrestricted
Funds
£
-
1,328,090
39,856
64,570
1,432,516
Total
2022
£
1,551,551
3,028,683
4,580,234
Total
2022
£
221,787
1,822,248
39,856
104,570
2,188,461
4. ANALYSIS OF GROUP EXPENDITURE
Cost of generating voluntary income
Fundraising trading:
Charity shops
Trading company
Lottery company
Investment property expenses
Charitable activities:
Services for adults
Services for children and young people
4. ANALYSIS OF GROUP EXPENDITURE
(2021 COMPARABLES)
Cost of generating voluntary income
Fundraising trading:
Charity shops
Trading company
Lottery company
Investment property expenses
Charitable activities:
Services for adults
Services for children and young people
Direct
Costs -
Staf
£
410,366
457,082
32,572
11,747
-
3,741,941
708,913
5,362,621
Direct
Costs -
Staf
£
397,651
472,835
54,497
13,129
-
3,155,934
1,051,978
5,146,024
Direct
Costs -
Other
£
78,700
97,814
95,782
225,149
15,786
349,694
66,608
929,533
Direct
Costs -
Other
£
80,784
337,218
100,627
160,312
9,594
109,342
36,447
834,324
Support
Costs
£
15,233
310,008
45,955
20,878
-
439,335
101,790
933,199
Support
Costs
£
30,666
35,923
11,618
13,995
-
556,991
149,040
798,233		 Total
2021
£
1,668,790
2,166,763
3,835,553
Total
2021
£
215,327
2,065,800
27,594
61,748
2,370,469
Total
2022
£
504,299
864,904
174,309
257,774
15,786
4,530,970
877,311
7,225,353
Total
2021
£
509,101
845,976
166,742
187,436
9,594
3,822,267
1,237,465
6,778,581

ellenor Annual Report and Financial Statements 2022 | Notes to Financial Statement

41

Notes to Financial Statements

Support Finance Total
Premises Admin and IT Governance 2022
5. ANALYSIS OF SUPPORT COSTS £ £ £ £ £
Raising funds:
Cost of generating voluntary
income - 2,792 - 12,441 15,233
Fundraising trading:
Charity shops 262,212 5,820 16,954 25,022 310,008
Trading company 19,815 21,431 2,103 2,606 45,955
Lottery company - 12,438 5,674 2,766 20,878
Charitable activities:
Services for adults 15,173 284,402 107,954 31,806 439,335
Services for children and
young people 2,890 72,468 20,563 5,869 101,790
300,090 399,351 153,248 80,510 933,199
Support Finance Total
5. ANALYSIS OF SUPPORT COSTS Premises Admin and IT Governance 2021
(2021 COMPARABLES) £ £ £ £ £
Raising funds:
Cost of generating voluntary
income - 15,254 7,214 8,198 30,666
Fundraising trading:
Charity shops - 952 14,256 20,715 35,923
Trading company - 7,685 1,429 2,504 11,618
Lottery company - 1,800 9,535 2,660 13,995
Charitable activities:
Services for adults 97,888 270,131 166,021 22,951 556,991
Services for children and
young people 32,629 53,455 55,340 7,616 149,040
130,517 349,277 253,795 64,644 798,233
6. GOVERNANCE COSTS INCLUDE: 2022 2021
£ £
Staf costs 41,650 41,078
Auditor’s remuneration: Audit work 17,700 15,800
Professional fees 21,160 7,766
80,510 64,644
7. NET INCOME FOR THE YEAR IS STATED AFTER CHARGING:
2022 2021
£ £
Depreciation of tangible fxed assets: - owned by the charitable group 217,157 236,278
Auditors’ remuneration 12,700 11,000
Auditors’ remuneration – subsidiaries 5,000 4,800

No expenses were reimbursed to Trustees in the current year ended March 2022 (2021: £nil). No Trustee received remuneration in the current or prior year.

42 Notes to Financial Statement | ellenor Annual Report and Financial Statements 2022

Notes to Financial Statements

8. SUBSIDIARIES

Ellenor Lions Hospices Trading Limited
Turnover
Cost of sales
Gross proft
Administrative expenses
Other operating income
Operating proft/(loss)
Interest payable
Proft before tax
Tax on proft
Proft/(loss) for the year
Gift aid distribution to parent
Proft/(loss) after distribution
Net assets
Ellenor Lions Hospices Lottery Company Limited
Turnover
Cost of sales
Gross proft
Administrative expenses
Operating proft
Interest receivable
Gift aid donation to parent
Proft/(loss) after distribution
Net assets		 2022
£
168,522
(126,478)
42,044
(47,832)
-
(5,788)
-
(5,788)
-
(5,788)
-
(5,788)
(25,898)
2022
£
766,926
(101,244)
665,682
(156,529)
509,153
1
509,154
(509,154)
-
12,610		 2021
£
142,952
(136,057)
6,895
(30,685)
3,679
(20,111)
-
(20,111)
-
(20,111)
-
(20,111)
(20,110)
2021
£
564,912
(98,961)
465,951
(88,475)
377,476
4
377,480
(377,480)
-
12,610

Note 22 provides further details of the charity’s investment in the subsidiary undertakings.

ellenor Annual Report and Financial Statements 2022 | Notes to Financial Statement 43

Notes to Financial Statements

9. STAFF COSTS AND NUMBERS

Group
Staf costs were as follows:
Salaries and wages
Social security costs
Pension contributions Redundancy payments
Redundancy
Charity total staf costs were		 2022
£
4,778,563
332,076
216,061
35,921
5,362,621
5,318,302		 2021
£
4,559,170
338,744
210,002
38,108
5,146,024
5,078,398

The total employee salary and benefits of the key management personnel of the Group and Charity were £429,398 (2021: £426,264). These salaries include Employers National Insurance Contributions.

The number of employees whose emoluments for the year 2022 2021
fell within the following bands were: Number Number
£60,001 - £70,000 4 2
£70,001 - £80,000 1 1
£80,001 - £90,000 1 1

These 6 above employees are accruing pension contributions totalling £36,892 (2021: £24,712).

Group

The average number of employees during the year was as follows:
Charitable activities
Finance and Admin
Fundraising
The Charity average number of employees		 2022
Number
132
5
15
152
150		 2021
Number
152
4
14
170
165

44 Notes to Financial Statement | ellenor Annual Report and Financial Statements 2022

Notes to Financial Statements

10. TANGIBLE FIXED ASSETS
Group
Cost
At 1 April 2021
Additions
Disposals
At 31 March 2022
Depreciation
At 1 April 2021
Charge for the year
Disposals
At 31 March 2022
Net book value
At 31 March 2022
At 31 March 2021
Charity
Cost
At 1 April 2021
Additions
Disposals
At 31 March 2022
Depreciation
At 1 April 2021
Charge for the year
Disposals
At 31 March 2022
Net book value
At 31 March 2022
At 31 March 2021		 Freehold
Property
£
4,166,383
-
4,166,383
1,561,152
77,538
1,638,690
2,527,693
2,605,231
4,166,384
-
4,166,384
1,561,153
77,538
1,638,691
2,527,693
2,605,231		 Long
term
Leasehold
Property
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 Furniture
&
Equipment
£
1,308,199
56,160
1,364,359
1,012,394
131,263
1,143,657
220,702
295,805
1,308,199
56,160
1,364,359
1,012,394
131,263
1,143,657
220,702
295,805		 Motor
Vehicles
£
73,241
73,241
64,885
8,356
73,241
-
8,356
73,241
-
73,241
64,885
8,356
73,241
-
8,356		 Total
£
5,547,823
56,160
-
5,603,983
2,638,431
217,157
-
2,855,588
2,748,395
2,909,392
5,547,824
56,160
-
5,603,984
2,638,432
217,157
-
2,855,589
2,748,395
2,909,392

ellenor Annual Report and Financial Statements 2022 | Notes to Financial Statement 45

Notes to Financial Statements

11. INVESTMENT PROPERTY Freehold Freehold
Investment
Property
Group £
Valuation
At 1 April 2021 552,500
Revaluations
Investments gifted to the		 charity 90,000
857,500
At 31 March 2022 1,500,000
Company
Valuation
At 1 April 2021 552,500
Revaluations
Investments gifted to the		 charity 90,000
857,500
At 31 March 2022 1,500,000

The above valuations are based on 2022 survey revaluations made by a RICS Registered Valuer.

The Trustees consider that the value of investment properties is a fair reflection of their current value on an open market value for existing use basis as at 31st March 2022.

Two investment properties (161 & 171 Bells Lane, Hoo, Rochester) have a loan charge against them. The loan expires on 3rd May 2022 and had a balance outstanding of £11,674.

INVESTMENTS: Group
Market value at 1 April
Revaluations
Market value at 31 March
Historical cost as at 31 March		 2022
£
14,513
224
14,737
8,106		 2021
£
14,065
448
14,513
8,106

All the above shares are equities listed on the London Stock Exchange.

INVESTMENTS: Charity
Market Value
At 1 April 2021
Revaluations
At 31 March 2022		 Sub total
brought
forward
£
14,513
224
14,737
Shares
in Group
Undertakings
£
2
-
2		 Total
£
14,515
224
14,739

All the fixed asset investments are held in the UK. The shares in group undertakings are the charity’s shares in its wholly owned subsidiaries – Ellenor Lions Hospices Trading Limited and Ellenor Lions Hospices Lottery Company Limited.

46 Notes to Financial Statement | ellenor Annual Report and Financial Statements 2022

Notes to Financial Statements

12. STOCKS
Finished goods and goods for resale
13. DEBTORS
Amounts falling due after more than one year
Amounts owed by group undertakings
Amounts falling due within one year
Trade debtors
Amounts owed by group undertakings
Other debtors
Prepayments, legacies and accrued income		 Group
£
19,008
Group
£
-
1,638,916
-
87,768
6,261,324
7,988,008
Charity
£
-
Charity
£
-
1,638,916
526,911
86,792
6,259,371
8,511,990
2022
2022		 Group
£
19,526
Group
£
-
14,574
-
67,452
2,649,945
2,731,971
Charity
£
-
Charity
£
10,000
14,574
231,901
66,477
2,645,487
2,958,439
2021
2021
1,638,916
-
87,768
6,261,324
7,988,008
2022 2022 2021 2021
14. CREDITORS
Group Charity Group Charity
£ £ £ £
Amounts falling due within one year
Bank loan/ overdraft 11,674 11,674 80,594 80,594
Trade Creditors 301,347
295,306		 173,068 171,454
Other taxes and social security 90,976 90,976 76,833 76,833
Other creditors 55,253 55,288 29,110 29,144
Accruals 230,367
227,187		 141,865 139,465
Deferred income 1,638,940 1,586,310 54,803 -
2,328,557 2,266,741 556,273 497,490

The above 2022 deferred income includes £1,586,310 funding for clinical services that will be performed in 2023 under a grant agreement.

ellenor Annual Report and Financial Statements 2022 | Notes to Financial Statement 47

Notes to Financial Statements

15. OPERATING LEASE COMMITMENTS

At the year end, the charity was committed to make the following payments in total in respect of operating leases.

Group
Leases which expire:
Within one year
Within two to fve years
Greater than 5 years
Charity
Leases which expire:
Within one year
Within two to fve years
Greater than 5 years
16. ANALYSIS OF GROUP NET ASSETS
Fixed assets
Current assets
Current liabilities
Net assets at 31 March 2022
ANALYSIS OF GROUP NET ASSETS
(2021 COMPARABLES)
Fixed assets
Current assets
Current liabilities
Net assets at 31 March 2021		 Vehicle
Lease
2022
£
6,590
8,237
-
6,590
8,237
-
Restricted
Funds
£
622,727
472,400
-
1,095,127
Restricted
Funds
£
694,726
542,612
-
1,237,338		 Vehicle
Lease
2021
£
13,180
29,654
-
13,180
29,654
-
Designated
Funds
£
2,125,668
3,500,000
-
5,625,668
Designated
Funds
£
2,214,667
1,500,000
-
3,714,667		 Shop
Leases
2022
£
195,750
309,458
110,208
195,750
309,458
110,208
General
Funds
£
1,514,737
10,877,876
(2,328,557)
10,064,056
General
Funds
£
567,012
5,556,979
(556,273)
5,567,718		 Shop
Leases
2021
£
186,750
421,750
131,208
186,750
421,750
131,208
Total
Funds
£
4,263,132
14,850,276
(2,328,557)
16,784,851
Total
Funds
£
3,476,405
7,599,591
(556,273)
10,519,723

48 Notes to Financial Statement | ellenor Annual Report and Financial Statements 2022

Notes to Financial Statements

17. ANALYSIS OF FUNDS
Unrestricted funds:
General fund
Designated fund - Property
Development
Designated fund - Fixed Assets
Total unrestricted funds
Restricted funds:
Property extension 2008
Hospice DTU extension 2010/11
NHS England Grant
2014/15
Climate control and bathroom
refurbishment
CIN –Music Therapist
Restricted Legacy
NHS England Children’s
Hospice Grant 2021/22
NHS D.G.& S –Care Home
Support
Kent County Council –
Kent & Medway CCG –
Funding for RESPECT training
Kent & Medway CCG –
Funding for Heart Failure training
Coniston –mini bus
Various –beds & mattresses
DGS CCG Step Down Patients Grant
Various Donated Income
Hospice UK Covid Grant
Capital Appeal Income
Total restricted funds
Group total		 Balance
01 April 21
£
5,567,718
1,500,000
2,214,667
9,282,385
156,347
347,736
174,110
358,812
-
-
-
-
-
8,755
7,778
-
-
183,800
1,237,338
10,519,723		 Income
£
8,394,028
8,394,028
221,787
258,220
5,000
20,000
20,000
230,938
88,281
4,089,899
72,104
5,006,229
13,400,257		 Expenditure
£
(2,076,913)
(2,076,913)
(7,095)
(14,850)
(37,285)
(182,316)
(221,787)
(258,220)
(5,000)
-
-
(8,755)
(4,014)
(230,938)
(88,281)
(4,089,899)
(5,148,440)
(7,225,353)		 Investment/
Transfers
£
(1,820,777)
2,000,000
(88,999)
90,224
-
90,224
Balance
31 March 22
£
10,064,056
3,500,000
2,125,668
15,689,724
149,252
332,886
136,825
176,496
-
-
-
20,000
20,000
-
3,764
-
-
-
255,904
1,095,127
16,784,851

The property extension fund was a capital project relating to the extension of the Gravesend hospice in 2008. The NHS England Children’s Hospice grant 2021/22 is restricted to paediatric activities.

The Hospice at Gravesend had a further extension which was completed in 2011. The Department of Health funded this capital project.

The designated fund Fixed Assets represents the net book value of tangible fixed assets excluding those already accounted for in restricted funds.

The designated fund property – has been designated to a property extension and refurbishment for Outpatients at the Hospice, Gravesend. Building works will start in October 2022.

The legacy balance of £176,496 is restricted to capital property development. The legacy has been used to fund the Design Team fees and survey work for the Outpatient development.

Capital Appeal income with a balance of £255,904 is also restricted to development of the hospice at Gravesend. The NHSE awarded funding to allow the hospice to make available bed capacity and community support from December 2021 to March 2022 to provide support to people with complex needs in the context of the COVID-19 situation – this was received via a Hospice UK Grant and fully spent during the year.

ellenor Annual Report and Financial Statements 2022 | Notes to Financial Statement

49

Notes to Financial Statements

17. ANALYSIS OF FUNDS
(2021 COMPARABLES)		 Balance
01 April 20		 Income Expenditure Investment/
Transfers		 Balance
31 March 21
£ £ £ £ £
Unrestricted funds:
General fund 3,389,847 6,852,816 (3,294,201) (1,380,744) 5,567,718
Designated fund - Property
Development - 1,500,000 1,500,000
Designated fund - Fixed Assets 2,333,475 (118,808) 2,214,667
Total unrestricted funds 5,723,322 6,852,816 (3,294,201) 448 9,282,385
Restricted funds:
Property extension 2008 163,442 (7,095) 156,347
Hospice DTU extension 2010/11 362,586 (14,850) 347,736
NHS England Grant
2014/15 211,395 (37,285) 174,110
Climate control and bathroom
refurbishment
Restricted Legacy 439,974 (81,162) 358,812
NHS England Children’s
Hospice Grant 2020/21 - 215,327 (215,327) -
NHS D.G.& S –Care Home
Support - 258,220 (258,220) -
Kent County Council –
Family fun days & short breaks - 313 (313) -
NHS West Kent –
Children’s Nurse - 54,756 (54,756) -
NHS Bexley CCG –
Children’s Nurse - 55,769 (55,769) -
Coniston –mini bus 17,908 (9,153) 8,755
Various –beds and mattresses 11,792 (4,014) 7,778
DGS CCG Step Down Patients Grant 368,651 (368,651) -
Various Donated Income - 100,520 (100,520) -
Hospice UK Covid Grant 2,277,265 (2,277,265)
Capital Appeal Income 55,000 128,800 183,800
Total restricted funds 1,262,097 3,459,621 (3,484,380) - 1,237,338
Group total 6,985,419 10,312,437 (6,778,581) 448 10,519,723

50 Notes to Financial Statement | ellenor Annual Report and Financial Statements 2022

Notes to Financial Statements

18. PENSION COMMITMENTS

The charity operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the charity in an independently administered fund. The pension cost charge represents contributions payable by the charity to the fund and amounted to £216,061 (2021: £210,002).

19. TAXATION

The charity is exempt from corporation tax as all its income is charitable and is applied for charitable purposes.

The charity is not exempt from VAT which is included with the expenses to which it relates on the Statement of Financial Activities.

20. RECONCILIATION OF NET INCOME / (EXPENDITURE) TO NET CASH INFLOW FROM OPERATING ACTIVITIES.

Net income/(expenditure)for the year
Add back depreciation charge
Gain on investments
Investment properties from legacies
Decrease in stocks
Increase in debtors
Increase/ (decrease) in creditors
Net cash used in operating activities		 Group
£
6,265,128
217,157
(90,224)
518
(5,256,037)
1,772,284
2,051,326
Charity
£
6,270,916
217,157
(90,224)
-
(5,543,551)
1,769,251
1,766,049
2022
(857,500)
(857,500)		 Group
£
3,534,304
236,278
(448)
4,921
(1,730,827)
(98,306)
1,945,922
Charity
£
3,554,415
236,278
(448)
-
(1,504,395)
(96,949)
2,188,901
2021
-
-

21. CONTROLLING PARTY

ellenor is controlled by its Board of Trustees.

22. PRINCIPAL SUBSIDIARIES

22. PRINCIPAL SUBSIDIARIES
Percentage
Company Name Country Shareholding Description
EllenorLions Hospices Lottery Company Limited England 100 Operates charity lottery
(Company number: 03116416)
EllenorLions Hospices Trading Limited England 100 Sells new goods
(Company number: 05985820)

23. RELATED PARTY TRANSACTIONS

In 2022 the following transactions took place between the Charity and its wholly owned subsidiaries Ellenor Lions Hospices Trading Limited and Ellenor Lions Lottery Company:

Intercompany operating transaction balances of £47,730 and £469,181 respectively. There were no other outstanding balances with related parties as at 31 March 2022 (2021: £nil). The Trustees support the charity throughout the year and are regularly involved in fundraising and events. It is not possible for the charity to quantify the aggregate donations and fundraising by Trustees in the year.

ellenor Annual Report and Financial Statements 2022 | Notes to Financial Statement 51

Notes to Financial Statements

24. COMPARATIVE CONSOLIDATED
STATEMENT OF FINANCIAL ACTIVITIES
(2021):
INCOME FROM:
Donations and legacies
Charitable activities services for families
facing terminal illness
Other trading activities
Subsidiary retail shops and lottery
Charity retail shops
Total trading activities
Investments
Other income – sundry
Other income – Covid grant funding
Total other income
Total income
EXPENDITURE ON:
Raising funds
Fundraising and trading activities
Charitable activities
Services for families facing terminal illness
Other
Total expenditure
Net gains/(losses) on investments
Net movement in funds
Funds brought forward
Funds at 31 March 2021
Notes
2
3
8
4
11
7		 Restricted
Funds
£
229,320
953,036
-
-
-
-
-
2,277,265
2,277,265
3,459,621
-
3,484,380
-
3,484,380
-
(24,759)
1,262,097
1,237,338		 Unrestricted
Funds
£
3,606,233
1,417,433
711,547
394,994
1,106,541
30,554
304,663
387,392
692,055
6,852,816
1,709,255
1,575,352
9,594
3,294,201
448
3,559,063
5,723,322
9,282,385		 Total
2021
£
3,835,553
2,370,469
711,547
394,994
1,106,541
30,554
304,663
2,664,657
2,969,320
10,312,437
1,709,255
5,059,732
9,594
6,778,581
448
3,534,304
6,985,419
10,519,723

52 Notes to Financial Statement | ellenor Annual Report and Financial Statements 2022

Our Thanks

We are immensely grateful to all of the supporters who gave so generously in 2022, enabling us to continue providing high quality hospice care to babies, children and adults in our local community. THANK YOU!

ellenor.org

ellenorcharity

ellenor is a charity registered in England and Wales (1121561), and a company limited by guarantee (6302132). Registered office at Coldharbour Road, Gravesend, Kent DA11 7HQ.