## **Annual Report and Accounts** ## 2020-2021 Registered Charity Number: 1128881 Company Number: 06775584 **----- Start of picture text -----**
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## **Contents** |**Report of the Board of Trustees**|| |---|---| |References and administrative details|3| |Chairman’s statement|4| |About us|5| |Progress towards our 2020 - 21 strategic aims|6| |Our focus for 2021 - 22|7| |Our fundraising|8| |Our finances|9| |Principal risks and uncertainties|11| |Structure, governance and management|12| |Independent auditor’s report|14| |Financial statements|17| |Notes to the accounts|20| |Find out more|28| **2 |** P a g e South Bucks Hospice ## **References & Administrative Details** ## **REGISTERED OFFICE ADDRESS** Butterfly House Kingswood Park High Wycombe Buckinghamshire HP13 6GR ## **CHARITY REGISTRATION NUMBER** 1128881 ## **COMPANY REGISTRATION NUMBER** ## **EXTERNAL AUDITORS** Haysmacintyre LLP 10 Queen Street Place London EC4R 1AG **PRINCIPAL BANKER** Lloyds 27-31 White Hart Street High Wycombe Buckinghamshire HP11 2HL 06775584 ## **PATRONS** S Baker MP Baroness Finlay of Llandaff M Harker OBE R Jefcoate CBE DL ## **PRINCIPAL SOLICITORS** Reynolds Parry Jones (Blaser Mills LLP) 10 Easton Street High Wycombe Buckinghamshire HP11 1NP ## **BOARD OF TRUSTEES** D R Ellis OBE (Chairman) D Balls A H Chandler (Resigned 28 July 2021) T P F Davey (Resigned 7 December 2020) J L Kerridge C A Langley J B Pickersgill (Vice Chairman) Dr S Procter (Appointed 28 July 2021) S V Rabheru (Resigned 17 September 2021) Dr J A Walter (Resigned 24 February 2021) P J Watkins Lymphoedema patient **3 |** P a g e South Bucks Hospice ## **Chairman’s statement** more limited in our ability to raise income from other sources due to the restrictions in place. These income challenges brought with them uncertainty around our ability to generate the income we needed to deliver our care. **David Ellis OBE, Chairman** On behalf of the trustees, I am pleased to present this annual review, which gives us an opportunity to reflect on our activities over the year and to communicate our plans for the future. 2020/21 proved to be a challenging year for our patients, volunteers and staff, with the Covid-19 pandemic continuing to confront us with an extraordinary number of challenges. I am so proud of the way everyone has navigated the challenges Covid-19 has brought and, in particular, the ways in which new ways of working and receiving care have been embraced. Our clinical staff adapted their services to allow remote support. Alongside face-to-face appointments, we were able to offer telephone and video consultations as well as virtual support groups. The virtual support groups in particular offered a fantastic opportunity to connect with people during a time when many felt socially isolated. During the year we also looked to the future and began work on our new strategy post Covid-19. As part of this we reviewed our service provision and applied for registration with the Care Quality Commission. Our registration was successful and will enable us to both grow and diversify our services in the future. We were fortunate to be able to apply for a number of grants throughout the year and we managed our resources with great care. This meant we were able to continue to provide our essential services throughout the pandemic and remain financially sustainable. We are enormously grateful to Hospice UK and the Government for the support they have given during this time. As a day hospice we are committed to raising awareness in our community of palliative care and the benefits this can bring early in diagnosis. Palliative care helps to keep people well and those who receive it early are more able to cope with their illness. It also helps reduce unnecessary hospital admissions and the use of other health services. It remains vitally important we continue to build firm foundations for a sustainable future. We continue therefore to look to the future and embrace change and are ready for the challenges ahead. Finally, I would like to thank everyone who supports the hospice – our volunteers, fundraisers and employees – as we look forward to the year ahead. Our patients, volunteers, staff and supporters are at the heart of everything we do ## **David Ellis OBE Chairman** We also had to negotiate a number of openings and closures of our retail operation during the year, in line with government guidelines. We were also **4 |** P a g e South Bucks Hospice **About us** ## **OUR HOSPICE & SERVICES** We are a local day hospice providing care and support to patients aged 18 and over in South Buckinghamshire through the provision of specialist palliative care on an outpatient basis. We also support the families and carers of our patients and provide support to those requiring lymphoedema treatment and those bereaved as a result of cancer or a life-limiting illness. additional income. All our services are free of charge. ## **OUR HOLISTIC APPROACH** ## **Nursing Care** **Physical Therapies** **Complementary Therapies** We help people in our community earlier rather than later in their diagnosis, helping to keep them well and to cope with any health and care needs at home, wherever possible. Our aim is to help enhance the quality of life of those who use our services through the provision of specialist care that reflects the personal wishes of those we support. **Spiritual Care** **Counselling** **Practical Support Bereavement Support** ## **OUR VALUES** Our focus is: ## **C** ompassionate - To provide relief from pain and other troubling symptoms - To support emotional and spiritual needs - To provide practical support ## **OUR LOCATION** We are based in High Wycombe in Buckinghamshire and we support patients, their families and carers living in or with a GP in South Buckinghamshire. _We treat everyone with compassion in a caring, safe and supportive environment._ **A** spirational _We aspire to be the best in everything we do_ **R** espectful _We value each person as an individual, treating everyone with dignity and respect_ **E** nabling _We enable and empower people_ ## **OUR FUNDING** Most of our income comes from our fundraising activities. Our hospice requires greater funding to fulfil its potential and currently our service expansion is constrained by our ability to generate _South Bucks Hospice patient_ ## _**Our patients are at the heart of everything we do.**_ **5 |** P a g e South Bucks Hospice **Progress Towards Our 2020-21 Strategic Aims** ## **1: STRATEGIC REVIEW AND SERVICE DEVELOPMENT** The Covid-19 pandemic meant that we had to adapt our services and ways of working to ensure that we could deliver these as safely as possible. We continued to provide face-to-face outpatient appointments at the hospice, where appropriate and safe to do so, but also developed virtual services. We created a number of virtual groups, such as Positivity Art, Mindfulness and Self-care to support the wellbeing of our patients and carers. We developed and ran a new twelve-week online bereavement course, “Recovery from Loss of a Soul Mate”. One-to-one remote consultations also took place throughout the pandemic. We also started work on our strategic review, looking both in the shorter-term post Covid-19 and the longer-term aspirations for the hospice’s growth and development. As part of this review, we revisited the registration requirements with the Care Quality Commission and successfully registered with them in November 2020. We made changes to our organisational structure and identified a number of new positions. Recruitment during the year was however more difficult than anticipated due to Covid-19 and therefore much of the recruitment was delayed. ## **2. TECHNOLOGY, DATA AND REPORTING** We commenced a review of some of our systems during the year to improve our processes and to further our development. The need to integrate our lymphoedema system into our main clinical system was identified and a new lymphoedema module in our main system was built to support this. Work on restructuring our clinical data also commenced to enable us to improve our reporting both internally and externally. Our fundraising database was upgraded in September. ## **3. INCOME TO FUND OUR EXPANSION** 2020/21 proved to be a very difficult year in terms of developing our income generation. Due to Government lockdowns our shops were closed for long periods and our ability to undertake fundraising in the community was very limited. We were pleased however to receive support from the Covid-19 Emergency Fund during the year via Hospice UK. In January 2021 we recruited a new fundraiser to improve our trusts and foundations engagement and corporate giving programme. We continue to rely heavily on the generosity of the community for funding in an increasingly challenging fundraising environment and receive only a small amount of funding from Clinical Commissioning. ## **4. PEOPLE** A new external Human Resources provider was appointed with a new HR system to further support our HR function. The new system allows us to make greater use of technology to streamline our ways of working, including improved reporting and compliance. Many of our HR policies and procedures were reviewed during the year to ensure we are aligned with best practice. A new in-house staff newsletter was also launched in 2021. Recruitment of a Volunteer Co-ordinator was delayed until the next financial year and therefore did not take place as planned. **6 |** P a g e South Bucks Hospice ## **Our Focus for 2021-22** ## **1. SERVICE DEVELOPMENT** We will develop our care provision through a number of new initiatives: - New support groups and bereavement courses will be available for patients and carers - We will strengthen wellbeing through building on the spiritual support we offer - A new Bereavement Listening Service is planned for early 2022 and volunteers to support this service will be sought and trained. We will also recruit additional staff, including a new Lead Palliative Care Nurse to help develop our nursing service and a Facilities Manager. ## **2. ENGAGEMENT** A Clinical Engagement Lead position will be created to improve our links with the healthcare community, promoting the benefits of early referral and raising awareness of the services we provide. We will improve our collaboration with others to further support the provision of care both to our patients and in the wider community. We will make improvements to the frequency and ways that we gather feedback from our service users. This will enable us to be more proactive in developing and adapting services within the hospice, maintaining our patient focus. ## **3. TECHNOLOGY** We will continue our review of technology to ensure that we keep pace with changing needs. In 2021/22 we plan to migrate more systems to the cloud to improve resilience and collaboration. We also plan to put in place a new risk management system to help improve and develop our governance and risk management reporting. We will complete the final phase of our plan to move all of our services onto one clinical platform. We will continue to make improvements to our clinical system to increase efficiency and reporting to further support our decision making. ## **4. INCOME** Income generation remains a priority for the hospice to enable us to develop and grow and therefore further initiatives will be undertaken to enable us to support this. ## **5. STRATEGY AND GOVERNANCE** We will consult on and finalise a new 3-year strategy for the hospice. We will continue to make improvements to the governance of our hospice. We aim to complete the full review of our policies and procedures during the year and to ensure regular reviews are automated through our new risk management software. Our clinical governance framework will be reviewed and strengthened. This review will include benchmarking work and audit. South Bucks Hospice patient **7 |** P a g e South Bucks Hospice ## **Our Fundraising** **Without fundraising we would not be able to provide our services to those who need our help and support. Every pound donated brings us one step closer to caring for our next patient.** It is important to us that those who give to our Charity enjoy the experience and that we are clear about the ways in which we raise our funds. ## **REGULATION** As part of our commitment to best fundraising practice, South Bucks Hospice voluntarily subscribes to the Fundraising Regulator. We are also a member of the Institute of Fundraising. We are committed to adhering to best practice, applicable laws and codes, such as the Fundraising Regulator’s Code of Fundraising Practice. We report our complaints to the Fundraising Regulator. We received no fundraising complaints during the year. ## **WAYS TO SUPPORT US** There are a range of ways to support our work. These include: - Regular giving - Business partnerships - Legacy giving ## **COMMUNICATION** We ask our supporters if they would like to be kept up to date about our work and fundraising and retail activities. We do not use fundraising agencies. - Fundraising events - Grant funding - Shopping in and donating to our charity shops and reuse centres - Volunteering ## **GENERAL DATA PROTECTION REGULATION** ## **OUR FUNDRAISING COMMITMENT** The privacy and security of personal information is extremely important to us and as such we are committed to adherence to the General Data Protection Regulation which came into effect in May 2018. ## **COMPLAINTS** We strive for the highest standards however it is possible that there are occasions when we do not get things quite right. We take any complaints raised seriously and investigate them promptly. All complaints are dealt with sympathetically and thoroughly. We promise: - To keep our supporters’ details safe. We will not sell or pass their details to anyone who is not working directly on our behalf. - We promise to communicate with our supporters in a way that suits their needs. _South Bucks Hospice patient_ **8 |** P a g e South Bucks Hospice ## **Our Finances** ## **FINANCIAL SUMMARY** We entered the financial year with a great deal of financial uncertainty due to the pandemic, forecasting a considerable loss for the year. Due to the financial support we received from the Government, careful management of our costs and the income we received from our supporters, this foreseen loss was not realised. |foreseen loss was not realised.|| |---|---| ||**£'000**| |Deficit Before Covid Support|(188.2)| |Impact of Covid Support|601.5| |Surplus After Covid Support|413.3| At the end of the financial year we made a surplus of £316,427 before unrealised gains on listed investments of £94,886 for the financial year 2020/21. The overall surplus was therefore £413,313 for the year. A summary of the income and expenditure is as follows: |**Net income**|**2021**|2020| |---|---|---| ||**£'000**|£'000| |Total income|1,639.7|1,589.8| |Total expenditure|1,323.3|1,625.0| |Net income|316.4|(35.2)| |Unrealised gains/(losses) on
investment|96.9|(64.5)| |Net income|413.3|(99.7)| ## **INCOME** The Charity’s income excluding unrealised gains and losses on investments increased from £1.589m to £1.639m. This increase in income was largely due to Government support that was not forecast at the start of the year and a generous legacy. Our other income includes income from claims made under the furlough scheme for those operations that could not operate and also Covid-19 grant income during the period. Our retail operation was closed for large parts of the year due to Covid-19 and therefore the income generated fell considerably. |**Income**|**2021**|2020| |---|---|---| ||**£'000**|£'000| |Statutoryincome|67.8|79.8| |Fundraising|589.8|492.7| |Retail|378.4|1,007.7| |Investments|1.3|2.2| |Other|602.4|7.4| |Total|1,639.7|1,589.8| |Gains/losses on
investments|96.9|(64.5)| |Total|1,736.6|1,525.3| In order to best illustrate where our income comes from and how this is applied to our charitable work we have used the net income approach to show this: |**Net income by source**|**2021**
**£'000**|2020
£'000| |---|---|---| |Fundraising|472.6|358.4| |Retail|(186.1)|248.8| |Investments|98.2|(62.3)| |Other*|670.2|87.2| |Less expenditure on
objectives|641.6|731.8| |Total|413.3|(99.7)| _*Includes clinical commissioning and Covid-19 grants_ ## **EXPENDITURE** The Charity’s expenditure reduced from £1.625m to £1.323m. |£1.323m.||| |---|---|---| |**Expenditure**|**2021**|2020| ||**£'000**|£'000| |Retail|564.5|758.9| |Other cost of raisingfunds|117.2|134.3| |Patient Care|641.6|731.8| |Total|1,323.3|1,625.0| Our costs fell due to our operations being curtailed and a restructure of our operation mid-year alongside this to reduce our costs and preserve our financial sustainability. **9 |** P a g e South Bucks Hospice ## **Our Finances** ## **RESERVES** South Bucks Hospice’s reserves policy is in place to safeguard against unforeseen fluctuations in income. This allows us to ensure that we can continue to provide our services during these times. We were fortunate at the start of the pandemic to enter the financial year in a stronger position than originally intended due to expenditure in 2019/20 being significantly less than was planned. We anticipated that in 2020/21 we would have to draw on our reserves as we forecasted a large fall in our income due to the closure of our retail outlets and limitations on our ability to fundraise due to the Covid-19 pandemic. Our policy on reserves is to hold free reserves of at least 40% of annual operational expenditure. Measures were therefore taken during the year to mitigate the level of reduction in our reserves. Many of the measures undertaken by the hospice were based on factors known at the time, during a period of considerable financial uncertainty with a view to protection of our long-term financial viability. We were fortunate to be able to claim support through the Government’s furlough scheme and to receive a number of grants during the period, most significant of which was the Covid-19 grant received via Hospice UK. We also received a very welcome and unanticipated legacy during the period. This meant that we ended the financial year in a much better financial position than was foreseen at the start of the year. Our level of free reserves at the end of the year was £1,510,923 representing 78.3% of the Charity’s forecast annual operational expenditure. This higher level of end-year reserves means that we can continue with our plan to invest in the growth and development of our charity. At the end of the year, the trustees were pleased to be in the position to be able to designate funds of £380,000 for investment in the development of hospice services. The trustees are however mindful that the hospice’s income needs to increase significantly if it is to fulfil its longer term aims to provide greater palliative care support in the community At 31 March 2021, South Bucks Hospice held total funds of £6,685,294 (2020: £6,271,981) of which £1,873,494 (2020: £1,982,327) was restricted. Of the total funds, £4,841,401 (2020: £4,987,774) was held as fixed assets. ## **INVESTMENTS** South Bucks Hospice’s objective is to produce the best financial return on cash reserves within an acceptable level of risk. Capital preservation is therefore of high importance. As such, an amount at least equal to the Reserves Policy is held in cash or easily liquidated deposits to ensure capital protection and interest income. Most of the hospice's funds were held in cash during the year. At the end of the last financial year there was a significant unrealised loss on long-term investments due to Covid-19. During 2020/21 we saw our investments bounce back and are pleased to report a surplus of £96,886. These long-term investment funds are designed to provide a high and growing income, whilst at the same time protecting capital from the erosive effects of inflation. ## **FIXED ASSETS AND CAPITAL EXPENDITURE** The majority of our fixed assets comprise the land, building, furniture and equipment at our hospice. Other assets include our shops and van. We had no capital commitments at the end of the year. **10 |** P a g e South Bucks Hospice ## **Principal Risks & Uncertainties** The Board of Trustees are responsible for identifying and managing the major risks facing South Bucks Hospice and are satisfied that the steps being taken to mitigate risk meets the needs of the Charity. To this end, South Bucks Hospice maintains a risk register which is regularly reviewed by the trustees. There are also a number of systems of control in place to monitor risk: - The Charity has operational subcommittees in place to which responsibilities in key areas of risk are delegated - There is an annual planning and budgeting process in place which is subject to ongoing review during the year by the Board of Trustees The most significant risks and uncertainties identified and the steps being taken to mitigate these risks are: |**PRINCIPAL RISKS AND**
**UNCERTAINTIES**|**MITIGATION**| |---|---| |**Income**
Insufficient growth in stable and
sustainable income to support the
ongoing operational costs of the
hospice and its other business needs|• We have diversified income streams
• Financial performance, including cash flow forecasts, are
produced and reviewed on a regular basis
• A reserves policy is in place and the reserves position is
regularly monitored by the Finance Committee at each
meeting and by the Board of Trustees| |**Covid-19 Pandemic**
The risk of business disruption and
capability to function in terms of both
income generation and service
provision|• We have measures in place at our premises to protect our
staff, volunteers and service users
• Covid-19 training is in place
• We have business continuity plans which include remote
working for employees and non-face to face care and support
for our service users
• We have adequate cash to ensure our hospice’s resilience| |**Clinical Services**
The risk that the quality of our clinical
service is compromised|• We have a Clinical Committee in place to oversee the
governance of our clinical service
• We provide high-quality training to our clinical staff
• Policies and procedures are in place and regularly reviewed
• Patient feedback and incident reporting is in place| |**People**
The risk that we are unable to recruit
and retain the right people to support
our future strategy which may lead to
an inability to deliver services and
strategy|• Although recruitment during the Covid-19 pandemic remains
challenging, our reserves enable us to continue be in a
position to invest in our development and growth
• We have made improvements to our statutory and
mandatory training for staff and widened the availability of
training opportunities within the charity. We remain
committed to provide greater training opportunities and
continuing professional development| **11 |** P a g e South Bucks Hospice ## **Structure, Governance & Management** ## **STRUCTURE** The Charity was originally constituted as a Charitable Trust and governed by a Trust Deed, dated 20th October 1986. On 17th December 2008, the Trust’s charter and all its assets were transferred and became a new Company, limited by guarantee, maintaining its charitable status and service aims. The Charitable Company is a company limited by guarantee and is registered with the Charities Commission as a Charity. The liability of its members in the event that the charitable company is wound up is limited to £1 per member. ## **TRUSTEES** The Charitable Company is managed by the Board of Trustees, who are unpaid directors for the purpose of company law. Appointment to the Board of Trustees is by resolution of the Board members. The trustees have no financial interest in the Charitable Company. Trustees are recruited to ensure that the Board maintains a suitable mix of skills, knowledge and experience for the Hospice, including clinical expertise. The power to appoint new trustees is vested in the existing trustees, in accordance with the Charitable Company’s Articles and Memorandum of Association. When new trustees are appointed they are inducted through a process of consultation with existing trustees. New trustees are given relevant training in the responsibilities and duties of trustees of the Company as set out in Charity Commission guidelines and the Company‘s Articles and Memorandum of Association. Further guidance is also provided to new trustees through Hospice UK, of which South Bucks Hospice is a member. The Board meets at least four times per year to review and direct South Bucks Hospice’s strategy and performance. It will determine overall policy and trustees are required to formally declare any conflicts of interest at each meeting. ## **MANAGEMENT** The Board delegate the day-to-day responsibility for the operation of the Charitable Company and its main services to the Chief Executive, assisted by staff and volunteers. Responsibilities were also delegated to its committees during the year which reported back to the Board on a regular basis. The pay of the Senior Management is set by the Board of Trustees and is based on remuneration levels for similar roles in other charities. ## **COMMITTEES** The two trustee led committees operated during the year: - The Finance Committee - The Clinical Committee These committees met at least four times during the year and all had trustees serving on them. A staff led Health and Safety Committee was also formed during the year. ## **RELATED ORGANISATIONS** The Charity has one wholly-owned subsidiary, South Bucks Hospice Development Company Ltd, which was formed on 6th August 2013 to construct a new hospice on behalf of the Charity. ## **STATEMENT OF TRUSTEES’ RESPONSIBILITIES** The trustees (who are also the directors of the Charity for the purposes of company law) are responsible for preparing the trustees’ Annual Report and Accounts in accordance with applicable law and regulations. **12 |** P a g e South Bucks Hospice ## **Structure, Governance & Management** Company law requires the trustees to prepare accounts for each financial year. Under that law the trustees have elected to prepare the accounts in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the trustees must not approve the accounts unless satisfied that they give a true and fair view of the state of affairs of the Charity and of the group and the incoming resources and application of resources, including the net income or expenditure of the group for the year. In preparing those accounts, the trustees are required to: - Select suitable accounting policies and then apply them consistently - Observe the methods and principles in the Charities SORP - Make judgments and estimates that are reasonable and prudent - State whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the accounts - Prepare the accounts on a going concern basis unless it is inappropriate to presume that the charity will continue in operation. The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Charity’s transactions and disclose with reasonable accuracy at any time the financial position of the Charity and the group and enable them to ensure that the accounts comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Charity and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. - There is no relevant audit information of which the Charity’s auditor is unaware; and - The trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information. ## **PUBLIC BENEFIT** We have referred to the guidance in the Charity Commission’s general guidance on Public Benefit when reviewing our aims and objectives and in planning our future activities. In particular, the trustees have considered how planned activities will contribute to the aims and objectives they have set. The trustees confirm that they have complied with the duty in section 4 of the Charities Act 2011 to have due regard to the Public Benefit guidance published by the Charities Commission in determining the activities undertaken by the Charity. The trustees have taken the exemptions available to small companies and have not prepared a Strategic Report. ## **CHARITY GOVERNANCE CODE** The Board of Trustees is committed to ensuring that high standards of governance are in place. As part of that commitment, the Board of Trustees will work to the Charity Governance Code. ## **APPROVAL** This report was approved by the trustees and signed on their behalf on 27 October 2021. ## David Ellis ## **D R Ellis OBE Chairman** In so far as the trustees are aware: **13 |** P a g e South Bucks Hospice **Independent Auditor’s Report to the Member of South Bucks Hospice** ## **Opinion** We have audited the financial statements of South Bucks Hospice for the year ended 31 March 2021 which comprise the Consolidated Statement of Financial Activities, the Consolidated and Charity Balance sheet, the Consolidated Cash flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion, the financial statements: - give a true and fair view of the state of the groups and charitable company’s affairs as at 31 March 2021 and of the groups and charitable company’s net movement in funds, including the income and expenditure, for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and - have been prepared in accordance with the requirements of the Companies Act 2006. ## **Basis for opinion** We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the group and charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. ## **Emphasis of matter** We draw attention to note 1 on page 20 of the financial statements which discloses the premise upon which the group has prepared its financial statements by applying the going concern assumption. Our audit opinion is not modified in respect of this matter ## **Conclusions relating to going concern** In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the groups and charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report. ## **Other information** The trustees are responsible for the other information. The other information comprises the information included in the Trustees’ Annual Report. 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 **14 |** P a g e South Bucks Hospice ## **Independent Auditor’s Report to the Member of South Bucks Hospice** other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. ## **Opinions on other matters prescribed by the Companies Act 2006** In our opinion, based on the work undertaken in the course of the audit: - the information given in the Trustees’ Annual Report (which includes the strategic report and the directors’ report prepared for the purposes of company law) for the financial year for which the financial statements are prepared is consistent with the financial statements; and - the strategic report and the directors’ report included within the Trustees’ Annual Report have been prepared in accordance with applicable legal requirements. ## **Matters on which we are required to report** ## **by exception** In the light of the knowledge and understanding of the group and charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees’ Annual 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 requires us to report to you if, in our opinion: - adequate accounting records have not been kept by the group and charitable company; or - the group and charitable company financial statements are not in agreement with the accounting records and returns; or - certain disclosures of trustees’ remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit ## **Responsibilities of trustees for the financial statements** As explained more fully in the trustees’ responsibilities statement set out on pages 12 and 13, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the group’s and charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so. ## **Auditor’s responsibilities for the audit of the financial statements** Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with 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 **15 |** P a g e South Bucks Hospice ## **Independent Auditor’s Report to the Member of South Bucks Hospice** influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of noncompliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: 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 health and social care and charity and company law applicable in England and Wales, and we considered the extent to which noncompliance 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 as the Companies Act 2006 and the Charities Act 2011. 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 revenue recognition, in particular in relation to income from donations, legacies and income from charitable activities, and management override of controls. Audit procedures performed by the engagement team included: - Inspecting correspondence with regulators and tax authorities; - Discussions with management including consideration of known or suspected instances of non-compliance with laws and regulation and fraud; - Evaluating management’s controls designed to prevent and detect irregularities; - Identifying and testing journals, in particular journal entries posted with unusual account combinations, postings by unusual users or with unusual descriptions; - Reviewing the cut-off of income recognised to consider whether income had been recognised in the correct accounting period; and - Challenging assumptions and judgements made by management in their critical accounting estimates. 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 group and 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. - the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or - the trustees have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the group’s or the parent charitable ## _Steve Harper (Senior Statutory Auditor)_ _for and on behalf of Haysmacintyre LLP, Statutory Auditor_ _Date:_ 17 December 2021 _10 Queen Street Place, London, EC4R 1AG_ **16 |** P a g e South Bucks Hospice ## **Consolidated Statement of Financial Activities for the Year Ended 31 March 2021** ## **(incorporating the income and expenditure account)** All amounts relate to continuing operations. All gains and losses recognised in the year are included in the Consolidated Statement of Financial Activities (SOFA). The Consolidated Statement of Financial Activities is for the Group. **17 |** P a g e South Bucks Hospice **Company registration Number: 06775584** ## **Consolidated & Charity Balance Sheets at 31 March 2021** ## The surplus of the Charity only prior to consolidation was £413,313 (2020: Deficit of £99,682). The financial statements on pages 17 to 27 were approved and authorised for issue by the Trustees on 27 October 2021 and signed on their behalf by ## David Ellis David Ellis OBE, Chairman **18 |** P a g e South Bucks Hospice ## **Consolidated & Charity Cash Flow Statements for the Year Ended 31 March 2021** ## **_________________________________________________** **19 |** P a g e South Bucks Hospice **Notes to the Accounts** ## **1. ACCOUNTING POLICIES** ## **ENTITY INFORMATION** South Bucks Hospice is a company limited by guarantee (company number 06775584) registered in England and Wales. It is also a charity registered with the Charity Commission (charity number 1128881). Its registered address is shown on page 3. ## **BASIS OF PREPARATION OF ACCOUNTS** The financial statements have been prepared on the going concern basis and under the historic cost convention except for investments which are included at market value. ## **CRITICAL ACCOUNTING JUDGEMENTS AND ESTIMATES** In preparing these financial statements, management has made judgements, estimates and assumptions that affect the application of the charities accounting policies and the reported assets, liabilities, income and expenditure and the disclosures made in the financial statements. 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. Specific judgements taken are included elsewhere within this note, including those over the depreciation rates utilized and the recognition of income. ## **INCOME** They comply with the Statement of Recommended Practice: Accounting and Reporting by Charities (Second Edition, effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), the Companies Act 2006, the Charities Act 2011 and UK Generally Accepted Practice. The Statement of Financial Activities (SOFA) and Balance Sheet consolidate the financial statements of the Charity and of its subsidiary undertaking on a line by line basis. No separate company Statement of Financial Activity (SOFA) has been prepared for the Charity as permitted by section 408 of the Companies Act 2006. The hospice meets the definition of a public benefit entity under FRS 102. The accounts are presented in pounds sterling, rounded to the nearest pound. ## **GOING CONCERN** The trustees consider there are no material uncertainties about the Charity’s ability to continue as a going concern. This assessment takes onto account the principal risks and uncertainties, including the impact of the coronavirus pandemic. The review of our financial position, reserves levels and future plans gives trustees confidence the Charity remains a going concern for the foreseeable future. All income is recognised when the Charity is legally entitled to the income and the amount can be quantified with reasonable accuracy. For legacies, entitlement is recognised when receipt is probable and there is sufficient information to value them. Goods donated for resale are included as income when they are sold. Gifts in kind and donated services are accounted for at a reasonable estimate of their value to the Charity. No amounts are included in the Financial Statements for services donated by volunteers. Grant income is treated on an accruals basis being brought into income in the period to which it relates. ## **EXPENDITURE** Expenditure is accounted for on an accruals basis. Governance costs are those costs which provide strategic direction and include the costs of the preparation and examination of the statutory accounts. Support costs include central functions and are allocated to activity costs based on a combination of headcount, staff time and transaction volumes. **20 |** P a g e South Bucks Hospice **Notes to the Accounts** ## **TANGIBLE FIXED ASSETS AND DEPRECIATION** Items of a fixed asset nature are only capitalised when the unit cost of the item exceeds £1,000 and they can be used for more than one year. Tangible fixed assets for use by the Charity are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost of the fixed assets over their normal expected useful lives: ## **STOCK** Stock is stated at the lower of cost and net realisable value. Items donated for resale are included in the financial statements when they are sold. The trustees consider that the time and cost involved in valuing the donated goods at the time of donation and including them as stock at the year end outweigh the benefit to the user of the accounts. No value is placed on medical supplies. ## **GIFTS IN KIND** Freehold land: _Not depreciated_ Freehold buildings: _2% straight line_ Landscaping: _4% straight line_ Patient lift: 6.67 _% straight line_ Fencing: 10% straight line Leasehold premises and property improvements: _20% straight line or over the term of the lease if shorter_ Fixtures, fittings and equipment (exc. computers): _20% straight line_ Computer Equipment: _25% straight line_ Motor Vehicles: _25% straight line_ **INVESTMENTS** Listed investments are stated at market value. Realised and unrealised gains and losses on investments are dealt with in the Statement of Financial Activities. Unlisted investments are stated at cost as they cannot be reliably valued as there is no open market valuation available. ## **FINANCIAL INSTRUMENTS** The Charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments, including trade and other debtors and creditors are initially recognised at transaction value and subsequently measured at their settlement value. The Charity receives donated services in the form of voluntary help. In line with section 6 of the Charities SORP (FRS 102) this is not reflected in the Statement of Financial Activities as the financial value of the contribution of volunteers is not quantifiable. ## **TAXATION** The Charity is exempt from income and corporation tax on income and gains to the extent that these are applied to its charitable objectives. South Bucks Hospice Development Company Ltd was formed to build a new hospice for the Charity. It has no taxable profits as it invoices the Charity for work undertaken at cost. ## **PENSIONS** South Bucks Hospice employees may become members of a defined contribution pension scheme operated by an independent company to which the Charity also contributes. The amounts charged to the Statement of Financial Activities are charged as they fall due. ## **FUND ACCOUNTING** Funds held by the Charity are: - Unrestricted funds, which the trustees can use at their discretion for the furtherance of the Charity’s objectives - Designated funds, which the trustees set aside out of unrestricted general funds for a specific purpose or project - Restricted funds, which are subject to special conditions imposed by the donor or were raised for a particular restricted purpose. **21 |** P a g e South Bucks Hospice Notes to the Accounts 2 DONATIONS The Income receried from donations Includes gifts In kind valued 31 £2.630.9512020'. £4501. 3 CHARITABLE ACTIVITIES AND CLINICAL COMMISSIONING The income we receive from clinical commissioning has been classified under donations as it is gwen as grant rather than as a contractfor service5. 4 INVESTMENTINCOME 2021 2020 ank deposit intprest 1,349 2,220 2.220 All Investment income in both the currentand previous year relate to unrestricted funds. 5 Oth•r Incomè 2021 2020 Government Grants Other Intome $01,522 887 602,409 6 GOVERNANCE COSTS 2021 2020 External auditDf5 remuneratian other Total 11,672 3,161 14.833 15,339 2.184 17.523 7 EXPENDITURE Charftable ArtMtle5 2021 Total 2020 Total RJlsln¥ Fund5 Ra151nz Funds Artlvltles Staff costs OtherdireEt costs Supportcosts 378,298 203,562 99,755 327,778 248,299 65,556 706,076 451,861 165,311 461,021 330,342 101,851 366.741 273,772 91,280 827,762 &M,114 193.131 Totsl 681.615 641.633 1.323.248 893.214 731,793 1.625.007 Analy515 Otsupport Costs 2011 Total 2020 Totwl Rwlsln¥ Fund ArtMtI@s R4151n8 Funds Artlvitles Human re50urce5 and general management ITSuppori Finance Governance 34A19 9,731 45,569 10,036 21,517 17,515 21,727 4,797 55,936 27,246 67,296 14,833 27,869 10,438 53,078 10,466 32,068 17,396 34,759 7,057 59,937 27,834 87,837 17,523 Total 99.755 65.556 165.311 101.851 91,280 193.131 SupportC05ts have been allocated on the basis of the accounting poliq setout in note l. 22 | Page south Bucks HospicÈ Notes to the Accounts STAFF COSTS AND TRUSTEE EXPENSES Total stsft costs 2021 E020 Wa8P5 and salarie5 Social security costs Pension costs for defined coDtribution Schemes Total 674,523 46,736 18,831 740,090 724,106 52.164 21,664 797.934 Redundanty and termination costs intluded in expenditure duringthe year were É17,90212020 £92￿1. Employee5 receiving total employee benefits (excluding employer pension wntributlQn51 over £60,(Kl) in the year-. one12020.- Nill. The total amount of employee benefit5 received bythe key mana8ement personnel lthe trustee5 and senior mana£ement of the charityl fortheir servites during ihe yèar was £156,05912020.- £86,956). None of thetrustee5 reteived any remuneration or anyother benefits durin8theyear12020.- Enill neitherwere they reimbursed expenses during the Staff attd voluntèèr numbors The average number of staff pmployed bysauth Bucks Hospi￿ duringthe year wa5" 2021 Av•rag+ h•Ad count 16.3 2020 A¥@ra8• h•ad ¢ount 22.2 Full tlm+ eqU￿alent 10.4 equlvalent Charity shop5 Management and administration Total 14.4 13.2 14.2 13.3 26.2 42.0 28.3 The average number of volunteer5 5UPPOrtin8 South Bucks H05pice durin8theyearwas.' zozi 2020 86 30 91 32 Fundr3ising3nd other Total 170 zoz 9 TANGIBLE FIXED ASSETS Freehold prop•rty Frqehold IAnd Leasehold prop•rty Flxtur•s. fittln85 & 4qulpm•nt Motor v•hld•s 2021 Tot*1 C05t At 1st April 2020 Additions 4,328,129 685,495 66,617 451,807 4,463 11,8011 454,469 15,125 5,547,173 4,463 11,8011 5,549,835 At315t March 2021 4,328.129 685,495 66,617 15.125 Accumulated depreciation.. At 1st April 2020 252,474 64,542 227,258 15,125 559,399 11,7621 150,797 708,434 Charge for the period At31st March 2021 86,563 339,037 1,9fy5 66,448 62,328 287,824 15,125 Net bookvalue At 31st March 2021 At 315t March 2020 3,989,092 4,075,655 685,495 685,495 169 2,075 166,645 224,549 4,841AOI 4,987,774 The tan8ible fixed assets are for the Charty only as there were no other tangible fixed assets within the Group. south Bucks HospicÈ Notes to the Accounts 10 INVESTMENTS 2021 Group E021 Charfty 334,241 334.242 Additions 96,886 431,127 96,886 431,128 At 315t Marth 2021 Anafysls of Investménts 2021 Group 2021 Char￿Y 2020 Group 2020 Charfty sted Inve5tment5 at market value Unquotpd investment at cost Total 414,448 16,679 431,127 414,448 16,680 431,128 317,562 16,679 334,241 317,562 16,680 334.242 Unguoted investment relates to the shareholdin8 In Hospice Lottery Partnership Ltd, owned equally by five local charities involved in the provision of h05pice or similar services. Unquoted investments a150 iDdude5 South 8uck5 Hospice'5 investment ID South Bucks H05pice Development Company of £1, Due to the uncertaintie5 in the global financial market5 as a result of the COVID-19 pandemic, there was a si£nificant unreali5ed loss of £64,527 in Investments aithe 2019-20 year end. This loss was rectsve￿d dufing202(k21 11 SUBSIDIARY South Bucks H05pice Developmentcompany Limited 15 a wholly owned subsidiary of South Bucks Hospice established a5 a construrtion company forthe Percentaae of apltal held No. of £1 ordlnary Shares held South Bucks H05pice Developmentcompany Ltd Registered Company Number.. 8638747 loo% The summ3rised financial information Df the South Bucks H05pice Development Cotnpanyw35.- 2021 2020 Total income Total eNpendilure Profit on ordinary activities 820 820 Assets 1,766 1,765 Net Assets 12 DEBTORS 2021 Group 2021 Char 2020 Group 2020 Charfty Taxation recoverable other debtors Legacie5 reco8ni5ed Prepayments Total 11,524 73,962 225,571 56,701 367,758 11,524 73,961 225,571 56,701 367,757 17,161 54,789 17,161 54,788 60.210 132.160 fA).210 132,159 24 | Page south Bucks HospicÈ ## **Notes to the Accounts Notes to the Accounts** The designated funds are funds set aside by the Board of Trustees for investment in hospice services, IT and other required equipment and upgrades. **25 |** P a g e South Bucks Hospice Notes to the Accounts 14 ANALYSIS OF NET ASSETS BETWEEN FVNDS l¢ontlnu•dl b} Chartty Hosptce n•wbulhl 20ZI Totsl Hosplce new bulld Othwr Oth•r 2020 Totsl Restrlded Funds Tangible fixed a55ets Investments IA16347 54,177 1070,524 1,9)2,W9 73,902 1,976,811 2,970 2,970 5,516 5,516 Totsl net assets IAIS,347 57,147 I￿73,494 I,￿2,￿9 79,418 1,982,327 Deslghated Funds Tan8iblefixed assets Current35sets 330,0 330,0 Totsl nei assets 380,( 380,OQKTr G•norql Funds Tangiblefixed assets Investments Current?ssets 2,920,8TI 431.128 1,180,317 1100,5221 2,920,877 431.128 1,180,317 IIW,S221 3,010,963 334.241 1,098,341 3,010,963 334,241 1,098,341 1153,8911 Ttstsi net assets 4,431,8 4,431,8CN) 4,289,654 4,289,654 Total Funds IA16?47 3,025,054 431,128 1,513,287 1100,5211 4,841,401 431,128 1,513,287 IIM,5221 1,9)2,gJ9 3,084,865 334,241 1,103,857 4,987,774 334,241 1,103,857 1153,8911 Investments Total net a55ets IAIS,347 4,868,947 6,685,294 I,9D2,￿9 4.369,072 6,271,981 15 FUNDS Hoipk 2011 Hosplu bulld 2010 Oth•r Total Othor Total R•%trlcted Fund Total funds brouBhtforw3rd Income and gains 1,902,910 79,417 302,645 1324,9151 1,982,327 302,64S 1,989,473 112,063 13.947 2,101,536 13,947 186,5631 186,5631 Transfer5 113.6CKII 79A17 113.fthl 1,982,327 IA16347 57,147 1,873,494 I,W2,910 045*natsd Funds Toial Ivnds brou8hrforward Income and gain5 250,( 250,0 380,( 380,OQKI 1250,OWI 1250,QWI Tran5fer5 Totsl funds carried forward 380,( 380,OQKI Gtneral Funds Totsl funds brou8htforward Income and gain5 4,289,654 1,210,600 1308,4541 4,289,654 1210,6C 1308,4541 4,020,127 1.511.378 4,020,127 1,511,378 Transfers Totsl funds carried forward 13,600 4,289,654 13,6C 4,289,654 5,191,8 5,191,8 Tota1 Funds Total funds brou8htforward Income and gains Expenditure and1055e5 Trènslers Total fund5 carried forward 1,902,910 4,369,071 1,513,245 6271,981 1,513,245 11,OYg,9321 1,989,473 4,382,190 1,525,325 11,538,444) 6,371,663 1,525,325 I1,625,￿7) 186,5631 IAIS,347 4,868,947 6,685,294 I,￿2,910 4.369,071 6,271,981 Althe end of the year no£aPltal commitments remained 15ee note 191. south Bucks HospicÈ ## **Notes to the Accounts** **27 |** P a g e South Bucks Hospice ## **Find out more** If you would like to find out more about our work and how you can support us contact us at Butterfly House Kingswood Park High Wycombe Bucks HP13 6GR Tel: 01494 552750 Fax: 01494 449841 Email **:** info@sbhospice.org.uk Web: www.sbh.org.uk ## **Make a donation** To donate visit us at **www.sbh.org.uk** or call **01494 552781** ## **Support us** To find out ways you can get involved with fundraising and volunteering call us on **01494 552781** ## **South Bucks Hospice** ## **@SBucksHospice** **----- Start of picture text -----**
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