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2021-03-31-accounts

Company number: 07846810 Charity Number: 1146310

KEMP House Trust Ltd

Report and financial statements For the year ended 31 March 2021

KEMP House Trust Ltd

Contents

For the year ended 31 March 2021

Reference and administrative information ...................................................................................... 1 Trustees’ annual report .................................................................................................................. 3 Independent auditor’s report ....................................................................................................... 19 Statement of financial activities (incorporating an income and expenditure account) ................... 24 Balance sheet ............................................................................................................................... 25 Statement of cash flows ................................................................................................................ 26 Notes to the financial statements ................................................................................................. 27

KEMP House Trust Ltd

Reference and administrative information

For the year ended 31 March 2021

Company number 07846810 Country of incorporation United Kingdom Charity number 1146310 Country of registration England & Wales Registered office and operational address 41 Mason Road KIDDERMINSTER DY11 6AG

Operational name KEMP Hospice Trustees Trustees, who are also directors under company law, who served during the year and up to the date of this report were as follows: Mrs Alison Field Chair (Resigned 30 June 2021) Mr Geoff Taylor-Smith Chair (Appointed 1 July 2021) Director (Appointed 1 December 2020) Mrs Kate E Collyer Mrs Janet Rowe Mr Malcolm Plant (Resigned 1 June 2020) Mr Shayne Taylor Mrs Julia Neal (Resigned 30 June 2021) Ms Polly Symondson Ms Katherine Ellis (Appointed 7 Sept 2021) Key management Heidi Hawkins Chief Executive personnel Caroline Beech Head of Finance & Infrastructure Laurey Grennall Head of Hospice Services (Appointed 14 Sept 2020) Charlie Homer Head of Fundraising & Communications Lynne Haines Head of Retail (Retired 31 August 2020) Gary Barnes Head of Retail (Appointed 24 August 2020) Ruth Power Head of People Bankers Santander Bridle Road Bootle L30 4GB HSBC Bank plc 6 Broad Street Worcester WR1 2EJ

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KEMP House Trust Ltd

Reference and administrative information

For the year ended 31 March 2021

Solicitors Painters 29 Church Street Kidderminster CY10 2AU Auditor Sayer Vincent LLP Chartered Accountants and Statutory Auditor Invicta House 108-114 Golden Lane LONDON EC1Y 0TL

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KEMP House Trust Ltd

Trustees’ annual report

For the year ended 31 March 2021

The trustees present their report and the audited financial statements for the year ended 31 March 2021.

Reference and administrative information set out on pages 1 and 2 forms part of this report. The financial statements comply with current statutory requirements, the memorandum and articles of association, the requirements of a directors’ report as required under company law, and the Statement of Recommended Practice - Accounting and Reporting by Charities: SORP applicable to charities preparing their accounts in accordance with FRS 102.

Objectives and activities

Purposes and aims

Our objectives: To provide clinical, emotional, and spiritual care with practical support for people, their families, carers and the wider community who may be affected by serious and life-limiting illness within Worcestershire and the surrounding areas, are contained in full within our Articles of Association and also reflected in our vision, mission and values as follows:

Our Vision is quality and choice in end-of-life care and bereavement support, easily accessed by everyone in the Wyre Forest who needs it.

Our Mission:

Our Values:

Positive; Respectful; Professional, Compassionate; Inclusive and Trustworthy

Our Activities

Care and Support

KEMP Hospice provides free specialist care for people affected by life limiting illness and gives support to those who have been bereaved in the Wyre Forest (Worcestershire) and surrounding areas. Our expert and compassionate care and support is provided not only for the patient but also for their carers and wider family, including children and young people.

KEMP House Trust Ltd

Trustees’ annual report

For the year ended 31 March 2021

Provided by a team of dedicated staff and over 200 volunteers all our support is free to access and with our hospice users facing a wide range of life limiting illnesses and conditions, we place great importance on taking a holistic view of patient care so as to deliver everything in response to the specific needs of an individual and their family. Our services include:

We are proud to work closely with the Community Specialist Palliative Care Team and the Wyre Forest Palliative Care Consultant, to ensure the care being provided to patients is as streamlined and comprehensive as possible. Additionally, we facilitate a heart failure clinic once every two months and Worcestershire Health and Care Trust operate a Lymphedema outpatient clinic every Thursday from one of our treatment rooms.

Generation of Income

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KEMP House Trust Ltd

Trustees’ annual report

For the year ended 31 March 2021

Governance

KEMP Hospice trustees review the aims, objectives, and activities of the charity each year. This report looks at what the charity has achieved and the outcomes of its work in the reporting period. The trustees report the success of each key activity and the benefits the charity has brought to those groups of people that it is set up to help. The review also helps the trustees ensure the charity's aims, objectives and activities remained focused on its stated purposes.

The trustees have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the charity's aims and objectives and in planning its future activities. In particular, the trustees consider how planned activities will contribute to the aims and objectives that have been set.

The trustees agree the strategic direction of the charity through the preparation and monitoring of a 5-year strategy. To support delivery of the strategy, an operational business plan and budget is developed annually, approved, and reviewed by the trustees. Our full strategy can be viewed by visiting our website: https://www.kemphospice.org.uk/strategy2024

We have clear objectives set out for each of our strategic plans, which are based on consolidation and sustainability, rather than expansion, and our aims reflect our desire to tangibly improve every area of our business, to be the very best that we can be, for all those who need us, and to keep our patients and clients at the heart of everything we do. We base all our activities, measure performance and plan business objectives around our 5 aims:

Progress towards achieving objectives is monitored and reviewed through the respective subcommittee which are focussed on Services, Finance, Resources and Risk and Income Generation, and

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KEMP House Trust Ltd

Trustees’ annual report

For the year ended 31 March 2021

at full Board meetings of the trustees. Monthly management accounts and quarterly reports by the Chief Executive and departmental managers are provided.

Day-to-day responsibility for the management of the charity is delegated to a senior management team of six, comprising: Chief Executive Officer, Heidi Hawkins; Head of Finance & Infrastructure, Caroline Beech; Head of Fundraising & Communications, Charlie Homer; Head of Hospice Services, Laurey Grennall; Head of People, Ruth Power and Head of Retail, Gary Barnes. The senior management team meet fortnightly to discuss both strategic and operational matters.

The trustees consider that they have complied with their duty in Section 17(5) of the Charities Act 2011 and have referred to the guidance provided by the Charity Commission on public benefit when reviewing the charity’s aims and objectives.

Achievements and performance 2020/21

2020/21 saw the second year of our five year strategy and, of course, Coronavirus. Regrettably we had to close the doors to our hospice on 16 March 2020 and cease face to face counselling support.

Our shops closed from 23 March 2020 until 9 June 2020, when we took a calculated and cautious approach, reopening in stages, testing, and evaluating our safety measures, welcoming back staff and volunteers in a staggered and deliberate way. We also introduced an online booking system to help us safely manage donations, a system we have retained. Similarly, all our community and events fundraising ceased for that period and face to face fundraising has only really tentatively started again following the end of the third lockdown in Winter 2021.

From February 2020, when we were aware that a pandemic was likely, we had been preparing to support those within our workforce who could work from home with enhancements to our digital and IT infrastructure, so our team was well placed to effortlessly move to home working; something which meant that our Family Support & Bereavement Team were able to continue their work almost seamlessly, albeit remotely.

We accessed the government’s Coronavirus Job Retention Scheme and furloughed all staff who were unable to work from home, such as our retail staff, as well as those who had seen a reduction in their work due to reduced activity such as housekeeping, some of our fundraising team and others across support services.

However, throughout the pandemic we adapted our services and remained responsive to the needs and feedback of our patients and their carers and families.

Our key developments have included:

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KEMP House Trust Ltd

Trustees’ annual report

For the year ended 31 March 2021

We anticipated a reduction in referrals into our service, with the lockdowns and society’s wish not to burden healthcare services. We were also conscious that our community might think because our buildings were closed that we had paused services too. However, we communicated updates on the services we continued to provide through local press and social media.

Following a quiet Summer, we started to receive referrals to our Care Services again steadily in the Autumn and at the end of March had 77 new referrals (106 2020/21). Our Finance and Welfare Officer received requests for support from 233 individuals (275 2020/21). Supporting Care Homes to update individual’s wishes and choices for their care in the form of Advance Care Planning. Over 400 individuals were directed to the service in comparison to 182 in the previous year.

We received 245 referrals for support for bereaved adults and 91 for children and young people. We anticipated that Coronavirus would place greater pressure on our Bereavement Services team, and we were able to recruit two additional ‘bank’ counsellors. However, although we are supporting a number of people who have lost a loved one as a result of Coronavirus, we are relieved to report that the surge in demand we feared may arise last summer did not come to pass. 1256 counselling sessions have been delivered across the year, either by phone or Zoom.

We were incredibly honoured to have been presented with awards from both the High Sheriff of Worcestershire and Bewdley Rotary Club. It meant a lot to have our team and work recognised. One of our nurses also received a special recognition award for her individual contribution over a long and distinguished career with KEMP, specifically acknowledging how she delayed her retirement when the pandemic struck to add support where it was needed.

KEMP House Trust Ltd

Trustees’ annual report

For the year ended 31 March 2021

Some feedback from those who have used our services this year

“Counselling has made a tremendous difference – my confusion & distress affected my family badly and by gradually unpeeling the layers, airing my anxieties helped me process and unburden. I’m feeling the joy in my life again and of course my family benefit from that too!”

“One of KEMP’s nurses now comes to see my husband regularly and calls to check in on how we are doing. He also has regular support with his mobility thanks to Physiotherapy sessions.”

“I have missed coming to KEMP and seeing everyone. I was always asked how I am and made to feel so special – that’s just how KEMP make you feel. It has been so nice to see all of the people I used to see on Tuesdays and the staff, to hear how other people are coping, their experiences of lockdown and how it has affected them. Although it isn’t the same as seeing people, it really is a marvellous way of keeping in touch and to say hello.”

“My Counsellor provided a very safe pair of hands to hold me whilst I explored my grief. She was a tremendous support to me and helped me put many demons to rest. She provided so much care and compassion, I truly miss our sessions. She is an exceptional counsellor.”

“The sessions gave me the opportunity to speak about issues that I had not been able to process and in some ways were holding me back from moving on. KEMP’s support has helped me to live in my ‘new normal’.”

oOo

Irene Preston is the wife and full-time carer of KEMP patient David Preston – just one of many individuals who our team has been able to support with in-home care services during the pandemic. Irene explains:

“After David was diagnosed with progressive supranuclear palsy, a severe movement disorder, we felt very alone and isolated. However, six months ago we were referred to KEMP and everything changed. The nurses called and arranged an appointment to come around to our home to meet David. They followed up immediately with how they could support us. We were so relieved.

One of KEMP’s nurses, Alison, now comes to see David regularly and calls us to check in on how we are doing, and Sarah, their physio, supports him with his mobility, which has been a great help. Caitlyn, their Advance Care Planning Facilitator, came and completed David’s ReSPECT form[1] with him. She was so kind and really took her time going through everything with him which was so helpful as he can get muddled and struggles with his speech.

We have been enjoying KEMP’s Virtual day Hospice programme and attend the weekly Zoom sessions. They really brighten and break up our days. We look forward to them. We

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KEMP House Trust Ltd

Trustees’ annual report

For the year ended 31 March 2021

really like the bingo – not the quizzes so much as we aren’t any good! - as well as the relaxation exercises which we do together. I also enjoy watching the creative therapy sessions. David sleeps a lot nowadays, but he always stays awake for KEMP’s Zoom calls. What has meant the most to us about the care and support we have received from KEMP, is the understanding and the kindness shown by all the staff. They are fantastic and we no longer feel on our own.”

oOo

Child X is a girl aged 9 years, she and her sister are being supported by KEMP. She started her counselling at KEMP 12 months ago when her father died suddenly. Losing her father so traumatically has been very difficult for X, 1:1 sessions had been via Zoom while schools were closed or not receiving visitors, this has also been difficult for X, increasing the isolation from her friends, school peers and ‘normal’ life.

We wanted X to come on the Memory Day to enable her to be with other children who had lost a loved one and have the opportunity to remember but also have some fun with the outdoor activities with children her own age that are dealing with similar emotions. Prior to the Memory Day it has been difficult to use creative tools to support X with her grief, the day enabled her to explore her grief and emotions creatively.

On arrival at the Memory Day X was very apprehensive about being in a group and leaving her mother. Once her mother had left, X joined the group and settled in well. Initially she sought out the company of the adult volunteers but relished the outdoor activities and soon built friendships with others in the group, including the other children. X gradually began to interact and seek out the company of peers rather than the adults.

X felt able to share her emotions individually and in a group setting - she became more confident and resilient throughout the day. Her anxiety levels dropped as she interacted with others and enjoyed being in a child’s world.

At the end of the day X was able to share how she was feeling, explore and highlight important memories of her father and come away with a set of defined coping skills for when things may feel too much.

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KEMP House Trust Ltd

Trustees’ annual report

For the year ended 31 March 2021

Income

There are some notable achievements for our income within this financial year, despite the incredibly challenging backdrop:

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KEMP House Trust Ltd

Trustees’ annual report

For the year ended 31 March 2021

Risk and Compliance

As a company and charity providing regulated and commissioned services, we follow codes of ethics and practice in our services and fundraising activities; we take our regulatory responsibilities seriously and work to protect our reputation and credibility as a professional organisation.

Please see ‘Plans for the Future’ on page 14 for how we will take the opportunities that Coronavirus has presented us with to reshape our services.

Sincere Thanks

The flexible approach and dedication to ensuring the people who need our services continued to be cared for and supported throughout this year would not have been possible without the dedication of our hardworking staff along with the very many willing volunteers who give freely of their time and talents and we would like to take this opportunity to thank them all for their efforts. Unsurprisingly with the disruption and very real threat caused by Covid, we saw a reduction in the numbers of volunteers who support our work. However, at the end of the financial year we are fortunate to still have an incredible 205 individuals volunteering their time across our charity within

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KEMP House Trust Ltd

Trustees’ annual report

For the year ended 31 March 2021

Retail; Fundraising; Finance; Care and Bereavement Services; and on our Board of Trustees. In total a no less incredible 11,702 hours of time, commitment, hard work and skills were shared to help us in delivering our work.

Financial review

Under such extraordinary circumstances our total income for the year of £2,154,186 (2020: £1,888,775) with a net surplus of £656,500 (2020: £186,497) was much better than we might have expected. All our income is used to support in the delivery of services to our patients and clients.

Income

We are grateful for the various government initiated financial support streams which helped us to retain our staff by accessing the furlough option, as well as the Retail, Hospitality and Leisure Grant which contributed to our Trading income and significantly offset potential losses from lockdown closures, resulting in a much better than anticipated income from our Trading activities of £681,397 (2020: £712,676).

So too we are thankful to Hospice UK for working with the government to secure funding which hospices were able to access in exchange for supporting the NHS in the Covid response. KEMP Hospice received a total of £274,386, enabling us to keep all of our service team members working and providing vital care and support throughout.

Additional to the funding which we receive from Herefordshire and Worcestershire Clinical Commissioning Group (CCG) in the form of a grant agreement, we were awarded additional funding to support anticipated increase in Covid related bereavement support which brought our CCG income to £361,094 this year.

Expenditure

Our total expenditure in 2020/21 was £1,497,686 (2020: £1,702,278) and contribution split can be seen below. The former half of the year saw a very strict review and pause on all non essential spending and the remainder of the year saw careful financial management, without detrimentally affecting any of our operations.

Our fundraising and retail expenditure directly supports our income generation for the charity and unsurprisingly this was reduced in this financial year at £645,425 (2020: £787,154).

Total funds held at the end of the financial year were £2,260,049 (2020: £1,603,549), of which £604,614 (2020: £629,819) is restricted to support the fixed assets which are essential for our charitable activities.

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KEMP House Trust Ltd

Trustees’ annual report

For the year ended 31 March 2021

Risk Management

We have a risk policy and register to enable the identification, monitoring and management of controls to mitigate risks. The Senior Team and Board of Trustees consider risks on a quarterly basis.

The key strategic risks are:

Our strategy, experienced team and spread of income streams means we are not reliant on one particular source of income. Our governance and operating model is such that any responsive changes to income strategy could be agreed within a short time period.

Reserves policy and going concern

The trustees have examined the charity’s requirements for reserves in light of the main risks to the organisation. A policy is established whereby the unrestricted funds not committed or invested in tangible fixed assets held by the charity should be 6 months of the anticipated expenditure. At the end of the financial year unrestricted free reserves were £1,210,247 (2020: £844,201), which is 20 months of the anticipated expenditure and representative of the desired reserves position.

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KEMP House Trust Ltd

Trustees’ annual report

For the year ended 31 March 2021

Plans for the future

From June 2021 we have re-opened our hospice building and crucially have increased the number of days a week, KEMP Hospice is open to patients from four to five days so we can reach more people, more often. Specifically our aims with this development are to:

Our dedicated team of staff and volunteers will offer the following services across two phases, provisionally scheduled to co-ordinate with the Government’s plan for the lifting of national lockdown restrictions:

Phase One (started June 2021)

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KEMP House Trust Ltd

Trustees’ annual report

For the year ended 31 March 2021

- Phase Two (to be phased in August 2021 March 2022)

We will be mindful that reintroducing patients, clients, volunteers and staff back to our shops and the hospice building will not necessarily be straightforward and we will have a focus on wellbeing and supporting everyone to feel safe and secure at KEMP.

Income Generation

Not unexpectedly this year will be about recovery and maximising every opportunity for income generation across our Fundraising & Communications department and through our Trading activities.

Governance

The Board of Trustees have embraced the Charity Governance Code, carrying out a self-assessment and have identified two key areas of focus: how the charity can demonstrate not only our financial/economic sustainability, but also our ecological and environmental impact in all our operations and; how the organisation as a whole can embed Equality, Diversity and Inclusion within our culture and across all operations, including within the Board itself.

Structure, governance and management

KEMP House Trust Ltd. (KEMP Hospice) is a charitable company limited by guarantee, incorporated on 14 November 2011 and registered as a charity on 9 March 2012.

The company was established under a memorandum of association which established the objects and powers of the charitable company and is governed under its articles of association.

All trustees give their time voluntarily and receive no benefits from the charity. Any expenses reclaimed from the charity are set out in note 7 to the accounts.

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KEMP House Trust Ltd

Trustees’ annual report

For the year ended 31 March 2021

Appointment of trustees

KEMP Hospice recruits trustees based on a number of factors including, but not limited to, the need for a particular skill, a mix of backgrounds, experiences and considering a range of dynamics. The charity utilises social media to promote trustee vacancies, as well as charity and individual networks. A comprehensive recruitment process includes formal interview, time spent with a range of the charity personnel, and attendance at two Board meetings. The existing trustees then vote to appoint.

Within this financial year the Board appointed Geoff Taylor Smith to a Chair Designate position, in readiness for taking on the Chair role following Alison Field’s resignation on 30[th] June 2021.

Some governance work was carried out throughout Summer 2020, including a more formalised succession planning process, and a review of the sub-committee structure to better meet the needs of our strategic aims. The following committees were agreed upon and commenced in September 2020: Patient Services (unchanged); MAGIC (Marketing and Generation of Income Committee); Finance & Resources and introducing a new committee overseeing Risk & Compliance. Additionally our Trustees agreed to a formal term of office of four years with an option to serve a further term, following a voting process.

Related parties and relationships with other organisations

KEMP House Trust is a separate registered charity, governed by a Trust Deed, which manages an investment portfolio and whose principal objective is to support the activities of KEMP Hospice, on provision of a costed business case which demonstrates the benefits to the beneficiaries of the hospice services.

During the year ending March 2021 there were four trustees, who meet quarterly and manage and oversee the investment portfolio with the professional advice of Investec Wealth and Investment Ltd. who visit the hospice twice a year and provide regular written reports to the board.

KEMP House Trust and KEMP House Trust Ltd. (KEMP Hospice) each have an appointed conduit member who attends the meetings of the other Board, but without voting rights, to ensure a greater understanding of what is taking place in each area.

KEMP House Trust (Hospice Shop Ltd): The Trading Company is a wholly owned subsidiary of the Hospice. There were three directors serving during the year who have accountability for retail activities. The Hospice Chief Executive has ultimate responsibility for the management of the Hospice and Trading Company. All three of the current directors are hospice Trustees. The Head of Retail and Head of Finance attend the Board meetings, which are held quarterly.

We are in the finishing stages of dissolving the Trading Company, pending finalising lease terms with landlords. All trading activities will then sit within the Hospice. We expect that this work will be completed by the end of the financial year ending 31[st] March 2022.

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KEMP House Trust Ltd

Trustees’ annual report

For the year ended 31 March 2021

Statement of responsibilities of the trustees

The trustees (who are also directors of KEMP House Trust Ltd for the purposes of company law) are responsible for preparing the trustees’ annual report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and group and of the incoming resources and application of resources, including the income and expenditure, of the charitable company or group for that period. In preparing these financial statements, the trustees are required to:

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

In so far as the trustees are aware:

The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Members of the charity guarantee to contribute an amount not exceeding £1 to the assets of the charity in the event of winding up. The total number of such guarantees at 31 March 2021 was 6 (2020: 7). The trustees are members of the charity but this entitles them only to voting rights. The trustees have no beneficial interest in the charity.

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KEMP House Trust Ltd

Trustees’ annual report

For the year ended 31 March 2021

Auditor

Sayer Vincent LLP was re-appointed as the charitable company's auditor during the year and has expressed its willingness to continue in that capacity.

The trustees’ annual report has been prepared in accordance with the provisions applicable to companies subject to the small companies’ regime.

The trustees’ annual report has been approved by the trustees on 1 December 2021 and signed on their behalf by

Geoff Taylor-Smith

Chair

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Independent auditor’s report

To the members of

KEMP House Trust Limited

Opinion

We have audited the financial statements of KEMP House Trust Limited (the ‘parent charitable company’) and its subsidiary (the ‘group’) for the year ended 31 March 2021 which comprise the consolidated statement of financial activities, the group and parent charitable company balance sheets, the consolidated statement of cash flows and the notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the group financial statements section of our report. We are independent of the group and parent charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on KEMP House Trust Limited'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.

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Independent auditor’s report

To the members of

KEMP House Trust Limited

Other Information

The other information comprises the information included in the trustees’ annual report other than the group financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the group 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. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the group financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the group financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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 their environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ annual report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 and Charities Act 2011 requires us to report to you if, in our opinion:

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Independent auditor’s report

To the members of

KEMP House Trust Limited

Responsibilities of trustees

As explained more fully in the statement of trustees’ responsibilities set out in the trustees’ annual report, the trustees (who are also the directors of the parent 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 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

We have been appointed auditor under the Companies Act 2006 and section 151 of the Charites Act 2011 and report in accordance with those Acts.

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 are set out below.

Capability of the audit in detecting irregularities

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

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Independent auditor’s report

To the members of

KEMP House Trust Limited

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

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Independent auditor’s report

To the members of

KEMP House Trust Limited

Use of our report

This report is made solely to the charitable company's members as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and section 144 of the Charities Act 2011 and regulations made under section 154 of that Act. 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.

Fleur Holden (Senior statutory auditor) 14 December 2021

for and on behalf of Sayer Vincent LLP, Statutory Auditor Invicta House, 108-114 Golden Lane, LONDON, EC1Y 0TL

Sayer Vincent LLP is eligible to act as auditor in terms of section 1212 of the Companies Act 2006

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KEMP House Trust Ltd

Consolidated statement of financial activities (incorporating an income and expenditure account)

For the year ended 31 March 2021

Note
Income from:
2
3
3
5
5
12
6
Reconciliation of funds:
Donations and legacies
Charitable activities
Management charges
Lottery income
Sale of merchandise
Fundraising costs
Raising funds
Other income
Coronavirus Job Retention Scheme
Retail, Hospitality & Leisure Grants
Retail Business Interruption Insurance
Charity shop income
Other trading activities
Hospice services
Education income
Net income / (expenditure) for the year
Total expenditure
Charitable activities
Hospice services
Tax payable by subsidiaries
Charity shop costs
Investments
Total income
Expenditure on:
Total funds brought forward
Total funds carried forward
Transfers between funds
Net movement in funds		 Unrestricted
£
718,381
368,817
-
328,961
2,052
35,343
-
140,527
197,441
56,364
1,327		 Restricted
£
30,588
274,386
-
-
-
-
-
-
-
-
-		 2021
Total
£
748,969
643,203
-
328,961
2,052
35,343
-
140,527
197,441
56,364
1,327		 Unrestricted
£
823,349
277,756
3,608
712,676
3,000
23,835
311
-
-
-
2,894		 2020
Restricted
Total
£
£
41,346
864,695
-
277,756
-
3,608
-
712,676
-
3,000
-
23,835
-
311
-
-
-
-
-
-
-
2,894
41,346
1,888,775
-
338,871
-
599,834
52,315
763,463
-
109
52,315
1,702,278
(10,969)
186,497
-
-
(10,969)
186,497
640,788
1,417,052
629,819
1,603,549
1,849,212 304,974 2,154,186 1,847,429
263,158
514,032
381,193
9,124		 -
-
330,179
-		 263,158
514,032
711,372
9,124		 338,871
599,834
711,148
109
1,167,507 330,179 1,497,686 1,649,963
681,705
-		 (25,206)
-		 656,500
-		 197,466
-
681,705
973,730		 (25,206)
629,819		 656,500
1,603,549		 197,466
776,264
1,655,435 604,614 2,260,049 973,730

All of the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above. Movements in funds are disclosed in Note 18a to the financial statements.

24

KEMP House Trust Ltd

Company no. 07846810

Balance sheets

As at 31 March 2021

Note
Fixed assets:
11
12
Current assets:
14
15
Liabilities:
16
18a
Total assets less current liabilities
Stock
Debtors
Funds:
Restricted income funds
Unrestricted income funds:
Designated funds
General funds
Creditors: amounts falling due within one year
Net current assets
Total net assets
Investments
Cash at bank and in hand
Tangible assets
Total funds		 2021
2020
£
£
713,914
750,826
-
-
713,914
750,826
2,579
5,212
384,080
374,161
1,241,625
572,254
1,628,284
951,627
(82,149)
(98,904)
1,546,135
852,724
2,260,049
1,603,549
2,260,049
1,603,549
604,614
629,819
337,800
-
1,317,635
973,730
2,260,049
1,603,549
The group		 2021
2020
£
£
713,914
750,826
-
-
713,914
750,826
2,579
5,212
384,080
374,161
1,241,625
572,254
1,628,284
951,627
(82,149)
(98,904)
1,546,135
852,724
2,260,049
1,603,549
2,260,049
1,603,549
604,614
629,819
337,800
-
1,317,635
973,730
2,260,049
1,603,549
The group		 2021
2020
£
£
699,156
729,237
5,002
5,002
704,158
734,239
-
178
685,165
620,841
996,308
356,884
1,681,473
977,903
(34,364)
(43,379)
1,647,109
934,524
2,351,268
1,668,763
2,351,268
1,668,763
604,614
629,819
-
337,800
-
1,408,854
1,038,944
2,351,268
1,668,763
The charity		 2021
2020
£
£
699,156
729,237
5,002
5,002
704,158
734,239
-
178
685,165
620,841
996,308
356,884
1,681,473
977,903
(34,364)
(43,379)
1,647,109
934,524
2,351,268
1,668,763
2,351,268
1,668,763
604,614
629,819
-
337,800
-
1,408,854
1,038,944
2,351,268
1,668,763
The charity
713,914
2,579
384,080
1,241,625		 750,826
5,212
374,161
572,254		 704,158
-
685,165
996,308		 734,239
178
620,841
356,884
1,628,284
(82,149)		 951,627
(98,904)		 1,681,473
(34,364)		 977,903
(43,379)
1,546,135 852,724 1,647,109 934,524
2,260,049 1,603,549 2,351,268 1,668,763
2,260,049 1,603,549 2,351,268 1,668,763
604,614
337,800
1,317,635		 629,819
-
973,730		 604,614
-
337,800
1,408,854		 629,819
-
1,038,944
2,260,049 1,603,549 2,351,268 1,668,763

Approved by the trustees on 1st December 2021 and signed on their behalf by

Geoff Taylor-Smith Janet Rowe Chair Trustee

25

KEMP House Trust Ltd

Consolidated statement of cash flows

For the year ended 31 March 2021

For the year ended 31 March 2021
Note
Net income for the reporting period
(as per the statement of financial activities)
Depreciation charges
Interest from investments
(Increase)/decrease in stocks
(Increase)/decrease in debtors
Increase/(decrease) in creditors
Net cash provided by operating activities
Net cash provided used in investing activities
Analysis of cash and cash equivalents
Cash at bank and in hand
Total cash and cash equivalents
Cash and cash equivalents at the beginning of the
year
Cash and cash equivalents at the end of the year
Change in cash and cash equivalents in the year
Cash flows from operating activities
Cash flows from investing activities:
Interest received
Purchase of fixed assets
Loss on disposal of fixed assets		 £
£
656,500
63,127
1,558
(1,327)
2,634
(9,919)
(16,755)
695,817
1,327
(27,773)
(26,446)
669,371
572,254
1,241,625
At 1 April
2020
£
572,254
572,254
2021		 £
£
186,497
45,984
-
(2,894)
(1,678)
(211,139)
15,143
31,913
2,894
(117,286)
(114,392)
(82,479)
654,732
572,254
Cash flows
At 31 March
2021
£
£
669,371
1,241,625
669,371
1,241,625
2020
695,817
(26,446)		 31,913
(114,392)
Cash flows
£
669,371
669,371
572,254		 (82,479)
654,732
1,241,625 572,254
At 1 April
2020
£
572,254		 At 31 March
2021
£
1,241,625
572,254 669,371 1,241,625

26

KEMP House Trust Ltd

Notes to the financial statements

For the year ended 31 March 2021

1 Accounting policies

a) Statutory information

KEMP House Trust Limited is a charitable company limited by guarantee and is incorporated in England and Wales.

The registered office address is 41 Mason Road, Kidderminster, Worcestershire, DY11 6AG.

b) Basis of preparation

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) - (Charities SORP FRS 102), The Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

These financial statements consolidate the results of the charity and its wholly-owned subsidiary KEMP House Trust (Hospice Shop) Limited on a line by line basis. Transactions and balances between the charity and its subsidiary have been eliminated from the consolidated financial statements. Balances between the two entities are disclosed in the notes of the charity's balance sheet. A separate statement of financial activities, or income and expenditure account, for the charity itself is not presented as a summary of the result for the year is disclosed in the notes to the accounts.

Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy or note.

The accounts are prepared as full values however are presented to the nearest £1. This may cause small discrepancies in the financial statements.

In applying the financial reporting framework, the trustees have made a number of subjective judgements, for example in respect of significant accounting estimates. 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. The nature of the estimation means the actual outcomes could differ from those estimates. Any significant estimates and judgements affecting these financial statements are detailed within the relevant accounting policy below.

c) Public benefit entity

The charity meets the definition of a public benefit entity under FRS 102.

d) Going concern

The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern. Further information in relation to the trustees' appraisal of going concern is included in the trustees' annual report. There are no key judgements that the charity has made which have a significant effect on the accounts.

The trustees do not consider that there are any sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next reporting period.

Whilst the trading subsidiary, KEMP House Trust (Hospice Shops) Limited is due to be liquidated within the financial year ending 31 March 2021, and its accounts have been prepared on a basis other than going concern, there is no impact on the going concern conclusion for the parent charity or group, as the activities, assets and liabilities of the trading subsidiary will be transferred to the parent charity prior to liquidation.

e) Income

Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the income have been met, it is probable that the income will be received and that the amount can be measured reliably.

Income from government and other grants, whether ‘capital’ grants or ‘revenue’ grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.

For legacies, entitlement is taken as the earlier of the date on which either: the charity is aware that probate has been granted, the estate has been finalised and notification has been made by the executor(s) to the charity that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the charity has been notified of the executor’s intention to make a distribution. Where legacies have been notified to the charity, or the charity is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is treated as a contingent asset and disclosed if material.

Income received in advance of the provision of a specified service is deferred until the criteria for income recognition are met.

27

KEMP House Trust Ltd

Notes to the financial statements

For the year ended 31 March 2021

Donated professional services and donated facilities are recognised as income when the charity has control over the item or received the service, any conditions associated with the donation have been met, the receipt of economic benefit from the use by the charity of the item is probable and that economic benefit can be measured reliably. In accordance with the Charities SORP (FRS 102), volunteer time is not recognised so refer to the trustees’ annual report for more information about their contribution.

On receipt, donated gifts, professional services and donated facilities are recognised on the basis of the value of the gift to the charity which is the amount the charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.

The trading subsidiary has received a Retail, Hospitality and Leisure Grant from the local authority for each shop. The grants were received and have been recognosed in the financial year ending 31 March 2021 based on an entitlement date of 1 April 2020 as per the guidance issued by the Department for Business, Energy and Industrial Strategy.

h) Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank.

Unrestricted funds are donations and other incoming resources received or generated for the charitable purposes.

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

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:

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

k) Allocation of support costs

Where possible, costs have been allocated directly to the activity to which they relate. However, there are also shared support costs that enable the hospice's charitable, income generating and governance activities to be undertaken. Support and governance costs are re-allocated to each of the activities on the following basis which is an estimate, based on staff time, of the amount attributable to each activity

34% 66%

Governance costs are the costs associated with the governance arrangements of the charity. These costs are associated with constitutional and statutory requirements and include any costs associated with the strategic management of the charity’s activities.

28

KEMP House Trust Ltd

Notes to the financial statements

For the year ended 31 March 2021

1 Accounting policies (continued)

l) Operating leases

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

m) Tangible fixed assets

Items of equipment are capitalised where the purchase price exceeds £500. Depreciation costs are allocated to activities on the basis of the use of the related assets in those activities. Assets are reviewed for impairment if circumstances indicate their carrying value may exceed their net realisable value and value in use. Major components are treated as a separate asset where they have significantly different patterns of consumption of economic benefits and are depreciated separately over its useful life.

Where fixed assets have been revalued, any excess between the revalued amount and the historic cost of the asset will be shown as a revaluation reserve in the balance sheet.

Depreciation is provided at rates calculated to write down the cost of each asset to its estimated residual value over its expected useful life. The depreciation rates in use are as follows:

n) Investments in subsidiaries

Investments in subsidiaries are at cost.

o) Stocks

Stocks are stated at the lower of cost and net realisable value. In general, cost is determined on a first in first out basis and includes transport and handling costs. Net realisable value is the price at which stocks can be sold in the normal course of business after allowing for the costs of realisation. Provision is made where necessary for obsolete, slow moving and defective stocks. Donated items of stock, held for distribution or resale, are recognised at fair value which is the amount the charity would have been willing to pay for the items on the open market.

p) Debtors

Trade and other debtors are recognised at the settlement amount due. Prepayments are valued at the amount prepaid.

q) Cash at bank and in hand

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

r) 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.

s) Financial instruments

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

t) Pensions

Pension contributions to the group personal pension plan are charged against income when payable.

29

KEMP House Trust Ltd

Notes to the financial statements

For the year ended 31 March 2021

Income from donations and legacies
General donations
Gift aid
In memoriam
Grants from KEMP House Trust
Other charitable trusts
Legacies
Corporate income
Fundraising income		 Unrestricted
£
29,795
26,593
19,474
357,019
91,950
55,500
43,108
94,942		 £
-
-
-
-
30,588
-
-
-
Restricted		 2021
Total
£
29,795
26,593
19,474
357,019
122,538
55,500
43,108
94,942		 Unrestricted
£
48,991
56,227
25,313
367,127
29,618
98,212
31,304
166,557		 2020
Total
£
£
-
48,991
-
56,227
-
25,313
-
367,127
40,949
70,567
-
98,212
-
31,304
397
166,954
41,346
864,695
Restricted
718,381 30,588 748,969 823,349

Fundraising income includes events, raffle, community fundraising and donations.

CCG grant
Hospice UK Income
Other income
Sub-total for Hospice services
Education income
Sub-total for Education
Total income from charitable activities		 Unrestricted
£
361,094
-
7,723		 Restricted
£
-
274,386		 2021
Total
£
361,094
274,386
7,723		 2020
Unrestricted
Total
£
£
277,756
277,756
-
-
-
-
277,756
277,756
3,608
3,608
3,608
3,608
281,364
281,364
368,817 274,386 643,203
- - -
- - -
368,817 274,386 643,203

Education income is for medical student palliative care placements. All income from charitable activities is unrestricted.

30

KEMP House Trust Ltd

Notes to the financial statements

For the year ended 31 March 2021

Staff costs (Note 7)
Fundraising costs
Hospice events
Hospice care
Community fundraising
Corporate costs
Spiritual care
Volunteer costs
Catering
ACP costs
Running costs
Comms and marketing
Operations
Building costs
IT costs
Training
Professional fees
Audit fee
Support costs
Governance costs
Total expenditure 2021
Total expenditure 2020		 Raising
funds
£
87,663
17,034
5,267
-
1,279
13,424
-
-
-
-
-
-
-
-
4,096
1,101
-
-
129,863
126,140
7,155
263,158
338,871		 Charity shop
costs
273,664
-
-
-
-
-
-
-
-
-
240,368
-
-
-
-
-
-
-
514,032
-
-
514,032
599,834		 Hospice
services &
Education
£
418,900
-
-
20,127
-
-
80
-
8,985
889
-
-
-
-
998
2,643
-
-
452,623
244,861
13,889
711,372
763,463
Charitable
activities		 Governance
costs
£
-
-
-
-
-
-
-
210
-
-
1,461
-
-
-
167
7,761
11,445
21,043
-
(21,043)
-
-		 Support
costs
£
215,115
-
-
-
-
-
-
-
-
-
-
6,962
44,455
78,413
21,829
1,280
2,947
-
371,001
(371,001)
-
-
-		 2021
Total
2020
Total
£
£
995,342
1,067,191
17,034
16,571
5,267
31,385
20,127
49,881
1,279
4,207
13,424
17,090
80
65
210
1,508
8,985
8,956
889
796
241,829
293,645
6,962
9,011
44,455
41,266
78,413
112,083
26,923
26,271
5,190
5,308
10,708
5,139
11,445
11,795
1,488,562
1,702,168
-
-
-
-
1,488,562
1,702,168

31

KEMP House Trust Ltd

Notes to the financial statements

For the year ended 31 March 2021

5b Analysis of expenditure (prior year)

Staff costs (Note 7)
Fundraising costs
Hospice events
Hospice care
Community fundraising
Raffle
Corporate costs
Spiritual care
Volunteer costs
Catering
ACP costs
Running costs
GDPR
Comms and marketing
Operations
Building costs
IT costs
Training
Professional fees
Audit fee
Support costs
Governance costs
Total expenditure 2020
Total expenditure 2019		 Raising
funds
£
111,059
16,571
31,385
-
4,207
-
17,090
-
-
-
-
4,864
-
-
-
-
-
2,144
-
-
187,320
145,927
5,624
338,871
295,186		 Charity shop
costs
314,653
-
-
-
-
-
-
-
-
-
-
285,181
-
-
-
-
-
-
-
-
599,834
-
-
599,834
544,415		 Hospice
services &
Education
£
408,732
-
-
49,881
-
-
-
65
882
8,921
796
-
-
-
-
-
-
-
-
-
469,277
283,269
10,917
763,463
742,045
Charitable
activities		 Governance
costs
£
-
-
-
-
-
-
-
-
626
35
-
3,600
-
-
-
-
-
60
425
11,795
16,540
-
(16,540)
-
-		 Support
costs
£
232,747
-
-
-
-
-
-
-
-
-
-
-
9,011
41,266
112,083
26,271
3,104
4,714
-
429,196
(429,196)
-
-
-		 2020
Total
2019
Total
£
£
1,067,191
1,020,055
16,571
8,737
31,385
23,009
49,881
53,208
4,207
7,564
-
5,260
17,090
7,171
65
97
1,508
100
8,956
8,310
796
2,134
293,645
268,936
-
24,307
9,011
8,945
41,266
43,823
112,083
73,026
26,271
20,513
5,308
504
5,139
448
11,795
5,500
1,702,168
1,581,646
-
-
-
-
1,702,168
1,581,646

32

KEMP House Trust Ltd

Notes to the financial statements

For the year ended 31 March 2021

This is stated after charging:

This is stated after charging:
2021 2020
£ £
Depreciation 63,127 62,820
Loss on disposal of fixed assets 1,558 -
Operating lease rentals:
Property 81,758 105,691
Equipment 5,600 8,146
Auditor's remuneration (excluding VAT):
Audit 11,445 11,220
Other services 2,355 1,500

Staff costs were as follows:

Salaries and wages
Redundancy and termination costs
Social security costs
Employer’s contribution to defined contribution pension schemes		 2021
2020
£
£
903,508
971,466
-
986
65,165
66,970
26,670
27,769
995,343
1,067,191

The following number of employees received employee benefits (excluding employer pension costs and employer's national insurance) during the year between:

2021 2020
No. No.
£60,000 - £69,999 1 1

The total employee benefits (including pension contributions and employer's national insurance) of the key management personnel were £279,439 (2020: £259,355).

The charity trustees were neither paid nor received any other benefits from employment with the charity in the year (2020: £nil).

No charity trustee received payment for professional or other services supplied to the charity (2020: £nil).

No charity trustee received expenses for the payment or reimbursement of travel and subsistence costs (2020: £nil).

33

KEMP House Trust Ltd

Notes to the financial statements

For the year ended 31 March 2021

8 Staff numbers

The average number of employees (head count based on number of staff employed) during the year was 55 (2020: 49.0).

Staff are split across the activities of the charity as follows (full time equivalent basis):
Raising funds
Retail
Support
Governance
Management and administration		 2021
2020
No.
No.
2.0
2.1
7.0
5.2
12.2
14.5
14.2
9.2
-
-
35.4
31.0

9 Related party transactions

During the financial year ended 31 March 2021, KEMP House Trust (Hospice Shop) Ltd made sales of donated goods on behalf of the hospice to the value of £45,966 (2020: £156,858).

At 31 March 2021 KEMP House Trust (Hospice Shop) Ltd owed KEMP House Trust Ltd £264,238 (2020: £271,297).

KEMP House Trust Limited received grants of £357,019 (2020: £367,127) from KEMP House Trust, of which £76,005 (2020: £101,599) was outstanding at year end.

Aggregate donations from related parties were £1,436 (2020: £7,302).

10 Taxation

The charity is exempt from corporation tax as all its income is charitable and is applied for charitable purposes. The charity's trading subsidiary KEMP House Trust (Hospice Shop) Limited distributes under Gift Aid available profits to the parent charity. Its charge to corporation tax in the year was:


charge to corporation
tax in the year was:
2021 2020
£ £
UK corporation tax at 19% 9,124 109

34

KEMP House Trust Ltd

Notes to the financial statements

For the year ended 31 March 2021

For the year ended 31 March 2021
11
At the start of the year
Additions in year
Tangible fixed assets
The group
The Charity
At the start of the year
Additions in year
At the end of the year
Cost
Net book value
At the end of the year
At the start of the year
Net book value
Disposals in year
At the end of the year
At the start of the year
Charge for the year
Depreciation
At the start of the year
At the end of the year
Eliminated on disposal
At the end of the year
At the end of the year
At the start of the year
Cost
Charge for the year
Depreciation		 Leasehold
buildings
£
787,751
20,731
-		 £
26,080
-
-
Leasehold
property
improvements		 Motor
vehicles
£
22,120
-
-		 Office
equipment
£
91,577
3,716
-		 Furniture
and
equipment
£
371,312
3,327
(33,075)		 Total
£
1,298,840
27,773
(33,075)
808,482 26,080 22,120 95,293 341,564 1,293,538
127,078
19,691
-		 21,657
1,517
-		 15,899
1,555
-		 34,734
29,918
-		 348,647
10,446
(31,517)		 548,014
63,127
(31,517)
146,769 23,174 17,454 64,652 327,576 579,624
661,713 2,906 4,666 30,641 13,988 713,914
660,673 4,423 6,221 56,843 22,665 750,826
Leasehold
buildings
£
787,751
20,731		 Office
equipment
£
88,577
3,716		 Furniture
and
equipment
£
310,767
2,614		 Total
£
1,187,095
27,061
808,482 92,293 313,381 1,214,156
127,078
19,691		 34,134
29,318		 296,646
8,132		 457,858
57,141
146,769 63,452 304,778 514,999
661,713 28,841 8,603 699,156
660,673 54,443 14,121 729,237

The above assets are used for the Group and Charity.

35

KEMP House Trust Ltd

Notes to the financial statements

For the year ended 31 March 2021

12 Subsidiary undertaking

The charity owns the whole of the issued ordinary share capital of KEMP House Trust (Hospice Shop) Limited, a company registered in England. The company number is 02847086. The registered office address is 41 Mason Road, Kidderminster, DY11 6AG.

The subsidiary is used for non-primary purpose trading activities. All activities have been consolidated on a line by line basis in the statement of financial activities. Available profits are distributed under Gift Aid to the parent charity.

The Hospice trustees and Directors of the subsidiary have agreed to liquidate the trading company within the next financial year. The retail income generation will continue to operate in the parent charity.

Shayne Taylor, Alison Field and Polly Symondson are also directors of the subsidiary.

A summary of the results of the subsidiary is shown below:

Management charge payable to parent undertaking
Taxation on profit on ordinary activities
Retained earnings
Total retained earnings brought forward
Profit for the financial year
Loss on ordinary activities before interest and taxation
Interest receivable and similar income
The aggregate of the assets, liabilities and reserves was:
Liabilities
Amounts owed to the parent undertaking are shown in note 16.
Shares in group undertaking
Cost at 1 April 2020 and 31 March 2021
Gross profit
Loss on ordinary activities before taxation
Distribution under Gift Aid to parent charity
Total retained earnings carried forward
Profit for the financial year
Reserves
Assets
Administrative expenses
Turnover
Cost of sales
Other operating income
 2021
£
282,850
(2,456)		 2020
£
555,818
(4,864)
280,395
(516,706)
(13,003)
352,436		 550,953
(603,437)
(12,520)
-
103,122
144		 (65,003)
563
103,267
(9,124)		 (64,440)
(109)
94,143 (64,550)
(65,214)
94,143
(94,143)		 (664)
(64,550)
-
(65,214) (65,214)
332,951
(393,163)		 266,612
(326,823)
(60,212) (60,212)
2021
£
5,002		 2020
£
5,002

The charity owns 100% of the share capital of KEMP House Trust (Hospice Shop) Limited.

36

KEMP House Trust Ltd

Notes to the financial statements

For the year ended 31 March 2021

13 Parent charity

The parent charity's gross income and the results for the year are disclosed as follows:

14
15
Amounts due from subsidiary company
16
Result for the year
Gross income
Gift Aid
Amounts due from KEMP House Trust
Debtors
Taxation and social security
Accruals and deferred income
Prepayments and accrued income
Other creditors
VAT
Trade creditors
Pension Fund
Stock
Trade debtors
Other debtors
Creditors: amounts falling due within one year
Bought goods		 2021
2020
£
£
2,579
5,212
2,579
5,212
2021
2020
£
£
20,055
95,204
-
-
76,004
101,599
118,989
97,232
14,797
30
24,504
24,291
129,732
55,804
384,080
374,161
2021
2020
£
£
27,982
53,738
25,922
17,670
4,697
4,227
-
244
23,547
23,025
82,149
98,904
The group
The group
The group		 2021
2020
£
£
2,579
5,212
2,579
5,212
2021
2020
£
£
20,055
95,204
-
-
76,004
101,599
118,989
97,232
14,797
30
24,504
24,291
129,732
55,804
384,080
374,161
2021
2020
£
£
27,982
53,738
25,922
17,670
4,697
4,227
-
244
23,547
23,025
82,149
98,904
The group
The group
The group		 2021
£
1,625,900
656,500		 2020
£
1,344,914
251,711
82,149 98,904

17a Analysis of group net assets between funds (current year)

Analysis of group net assets between funds (current year)
Net current assets
Net assets at 31 March 2020
Net assets at 31 March 2021
Analysis of group net assets between funds (prior year)
Tangible fixed assets
Net current assets
Tangible fixed assets		 General
unrestricted
£
116,388
1,201,247		 Restricted
funds
£
597,526
7,088		 Designated
funds
£
-
337,800		 Total funds
£
713,914
1,546,135
1,317,635 604,614 337,800 2,260,049
General
unrestricted
£
129,529
844,201		 Restricted
funds
£
621,297
8,522		 Designated
funds
£
-
-		 Total funds
£
750,826
852,723
973,730 629,819 - 1,603,549

17b Analysis of group net assets between funds (prior year)

37

KEMP House Trust Ltd

Notes to the financial statements

For the year ended 31 March 2021

For the year ended 31 March 2021
18a
Total restricted funds
Total designated funds
General funds
Blakemore Foundation - Bereavement Support
(COVID response)
Eveson Charitable Trust - KEMP for Carers
KEMP in the Garden Building - depreciation of
annexe buildings
Freehold property at Mason Road
QBE European Operations Foundation - Butterfly
Room adaptations
J A Gillett Charitable Trust - Nursing Services
BBC Children in Need - Childrens Bereavement
Residential Weekend
Brian Shaw Trust - Coronavirus Community Support
Service
W A Cadbury Charitable Trust - Coronavirus
Community Support Service
Western Power (Community Matters Fund) -
Coronavirus Community Support Service
Restricted funds:
Worcestershire Community Foundation -
Coronavirus Community Support Service
Baron Davenport's Charity - Bereavement Support
(COVID response)
Sir Jules Thorn Charitable Trust - Coronavirus
Community Support Service
Hospice Aid UK - Bereavement Support (COVID
response)
Laslett's (Hinton) Charity - Bereavement Support
(COVID response)
Movements in funds (current year)
Total funds
Unrestricted funds:
Designated funds:
Redesign and landscaping of garden
Refurbishment of hospice patient
focussed rooms and general areas
Hospice roof and cellar
Total unrestricted funds
Wellbeing
Digital
Hospice kitchen & equipment
Hospice UK		 £
286,416
330,557
4,324
-
-
-
-
-
-
-
-
-
-
-
-
8,522
At 1 April
2020		 £
-
-
-
-
274,386
7,088
1,000
1,500
2,700
4,600
5,000
200
2,500
5,000
1,000
-
Income &
gains		 £
(15,912)
(3,535)
(4,324)
-
(274,386)
-
(1,000)
(1,500)
(2,700)
(4,600)
(5,000)
(200)
(2,500)
(5,000)
(1,000)
(8,522)
Expenditure
& losses		 £
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Transfers		 £
270,504
327,022
-
-
-
7,088
-
-
-
-
-
-
-
-
-
-
At 31 March
2021
629,819 304,974 (330,179) - 604,614
-
-
-
-
-
-		 -
-
-
-
-
-		 -
-
-
-
-
-		 100,000
105,800
20,000
4,000
48,000
60,000		 100,000
105,800
20,000
4,000
48,000
60,000
- - - 337,800 337,800
973,730 1,849,212 (1,167,508) (337,800) 1,317,635
973,730 1,849,212 (1,167,508) - 1,655,435
1,603,549 2,154,186 (1,497,687) - 2,260,049

Designated funds are funds which the trustees have set aside for the maintenance and improvement works to the hospice building, employee wellbeing and the development of our digital strategy.

38

KEMP House Trust Ltd

Notes to the financial statements

For the year ended 31 March 2021

18b Movements in funds (prior year)

Total restricted funds
General funds
QBE European Operations Foundation - Butterfly
Room adaptations
J A Gillett Charitable Trust - Nursing Services
BBC Children in Need - Childrens Bereavement
Residential Weekend
Michael & Anna Wix Charitable Trust - Nursing
Services
Lynn Foundation - Nursing Services
Pamela Barlow Charitable Foundation - Nursing
Services
L & R Gilley Charitable Trust - Nursing Services
Inman Charity - Nursing Services
Total funds
Restricted funds:
GJW Turner Trust - KEMP for Carers
Birmingham District Nursing Charitable Trust - KEMP
for Carers
Edgar E Lawley Foundation - KEMP for Carers
Eveson Charitable Trust - KEMP for Carers
St John's Club - KEMP for Kids
DMF Ellis Charitable Trust - KEMP for Kids
W E Dunn Trust - Nursing Services
Rowlands Trust - Furniture for Counselling Rooms
KEMP in the Garden Building - depreciation of
annexe buildings
Freehold property at Mason Road
Mrs J B Albright's Grimley Charity - KEMP for Carers
Unrestricted funds:
Total unrestricted funds		 £
302,328
334,092
4,368
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
At 1 April
2019		 £
-
-
-
1,000
6,949
200
500
500
1,750
4,050
2,000
4,000
1,000
3,000
2,000
1,500
10,000
397
2,500
Income &
gains		 £
(15,912)
(3,535)
(44)
(1,000)
(6,949)
(200)
(500)
(500)
(1,750)
(4,050)
(2,000)
(4,000)
(1,000)
(3,000)
(2,000)
(1,500)
(1,478)
(397)
(2,500)
Expenditure
& losses		 £
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Transfers		 £
286,416
330,557
4,324
-
-
-
-
-
-
-
-
-
-
-
-
-
8,522
-
-
At 31 March
2020
640,788 41,346 (52,315) - 629,819
776,264 1,847,429 (1,649,963) - 973,730
776,264 1,847,429 (1,649,963) - 973,730
1,417,052 1,888,775 (1,702,278) - 1,603,549

39

KEMP House Trust Ltd

Notes to the financial statements

For the year ended 31 March 2021

19 Operating lease commitments payable as a lessee

The group's total future minimum lease payments under non-cancellable operating leases is as follows for each of the following periods:


periods:
Less than one year
One to five years
Over five years		 2021
2020
£
£
70,403
70,403
189,285
271,701
-
20,833
259,688
362,937
Property		 2021
2020
£
£
1,296
1,296
4,304
7,120
-
-
5,600
8,416
Equipment
259,688 362,937

The charity's total future minimum lease payments under non-cancellable operating leases is as follows for each of the following periods:


following periods:
Less than one year
One to five years
Over five years		 2021
2020
£
£
14,667
14,667
110,500
146,000
-
20,833
125,167
181,500
Property		 2021
2020
£
£
439
439
3,076
4,833
-
-
3,515
5,272
Equipment
125,167 181,500

20 Capital commitments

At the balance sheet date, the group had no capital committments (2020: £5,850).

21 Legal status of the charity

The charity is a company limited by guarantee and has no share capital. The liability of each member in the event of winding up is limited to £1.

40