## **ANNUAL REPORT AND ACCOUNTS** ## **FOR THE YEAR ENDED 31 MARCH 2022** Registered Company No 08102611 Registered Charity Number 1151018 ## Annual Report and Accounts for the year ended 31 March 2022 |**Trustees Annual Report**
Foreword by the Chairman of Trustees
Who We Are
What We Aim to Do
Our Objectives
How we Invest our Funds
Performance and Achievements
Marketing
Our Impact with End-of-Life Services
Our Risk Management
Service Development & Our Future Plans
**Trustees Annual Report on Finance and Governance**
Basis of Preparation and Legal Framework
Structure, Governance and Management
Public Beneft Test
Risk Management
Our Fundraising Practices
Protection of the Public
Complaints Received from Supporters
Reserves Policy
Partnership Working and Networks
Investment Policy
Statement of Trustees’ Responsibilities
**Detailed Accounts**
Statement of Financial Activities
Balance Sheet
Statement of Cash Flows
**Notes to Accounts**
**Auditors Report**
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34| |---|---| 2 ## Foreword by the Chair of Trustees of Cransley Hospice Trust It is a tribute to our supporters, staff and volunteers of Cransley Hospice Trust that, even as the pandemic still affected all our lives, so many people in North Northamptonshire continued to support our fundraising activities, enabling us to grow our income again in 2021-22 to just over £1M. I would, once again, like to pay tribute to the amazing dedication and flexibility of the entire CHT community who displayed such resilience and resourcefulness in so many ways during the year. Although 2022 has thankfully seen the world start to emerge from the pandemic, its impact in 2021 remained significant and many of our events remained ‘virtual’. Of course, it has also been the case that many of the crucial end of life care services that we fund were also subject to restrictions relating to managing COVID-19 well into 2022. In a change to the format of our annual report I am pleased that we are able to include some specific information about the performance of end of life care services in Northamptonshire. I am sure you will join with me in expressing our appreciation for the dedication of all those who have supported patients, carers and families during the year across all of our care settings. Halfway through the year our Chief Executive, Peter Kelby, decided to retire. His contribution to developing Cransley Hospice Trust has been well documented over the years in previous Annual Reports and it only remains for me to thank him on behalf of all those involved in the Trust and wish him the very best for the future. We were delighted to recruit a new Chief Executive, Philip Talbot, who joined us in October and began the task of helping us move forward in the next phase of our ambition to grow the Trust. The challenge of the Cransley Hospice inpatient site continued to be a key focus during the year and we worked hard with Northamptonshire Healthcare (NHS) Foundation Trust (NHFT) to develop a preferred option for both organisations to pursue. This work has continued throughout the summer and an extension to the lease on the current Pipers Hill Road location has been agreed, and further plans are now being explored to develop the facilities on the site. The security of the ‘in house’ facility was a priority for the Board’s strategy, however the Board also continued to review the strategy and set a number of objectives which are outlined in detail later in the report. With stronger strategic clarity and alignment, CHT will continue to grow and increase its contribution over the coming 4 years and beyond. Looking forward, the Trust is engaging with the development of a new strategy for end-of-life care in partnership with all the providers and commissioners. As part of this development and partnership we have specifically been developing a proposed 24/7 Single Point of Access service which we hope to have commissioned in 2023. This service will offer patients, families and carers better access to end of life support services. We will also be celebrating the 25th anniversary of the opening of Cransley Hospice. We are planning a series of events to mark the occasion and we hope you will be able to continue to support us throughout the year. In closing, I thank my fellow Trustees for their time and expertise and our staff and volunteers for their hard work and dedication to our cause. Most of all I would like to thank our supporters for their magnificent efforts in helping us achieve our fundraising goals. **----- Start of picture text -----**
Paul Humphrey
Chair
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3 “When Mum was admitted to the hospice, we felt like a weight was lifted and we could just focus on being there for Mum, rather than having to worry about the care she so desperately needed. “The hospice staff were beyond amazing. It was like they could read your mind and they knew what we needed as a family even before we did! “When we were all sleeping at the hospice to be by Mum’s side, the team were simply incredible. I recall a wonderful Nurse, Becky, who turned up with toast and tea to make sure we were looking after ourselves too, so that we had the strength to support Mum.” “The hospice team really did go above and beyond to help both our Mum and our family. I’m so aware that if Mum had been in hospital, our experience could have been so very different – so we are incredibly grateful for the care and support of Cransley Hospice in our time of need.” _Toni Smith_ (loving daughter) 4 ## Who we are Cransley Hospice Trust (CHT) is an independent charity that raises funds to enhance end of life care in North Northamptonshire. This care is based around the ‘in house’ services provided by Cransley Hospice and is managed and operated by Northamptonshire Healthcare NHS Foundation Trust (NHFT). Income is generated from several sources including community and corporate fundraising, legacies, trusts and foundation giving, individual giving, and Gift Aid. The Trust is registered as a general-purpose charity under registration number 1151018. The Trust is also a Company Limited by Guarantee (Registration No 08102611). End of life services provide care for patients with life limiting illnesses including Hospice at Home which supports patients who would prefer to remain at home in the last weeks and days of life; Palliative Lymphoedema support; Outpatient support; and a Bereavement support service. CHT works in partnership with Cynthia Spencer Hospice Charity (CSHC) in Northampton, providing similar services to West Northamptonshire. “Cransley Hospice will forever have a special place in all of our hearts. It is an amazing facility that helps so many families like ours through difficult times with an unrelenting level of care and support. ” _The Dobbs family._ CHT continually seeks to improve and expand the support that makes a real difference to the care of patients who require palliation and end of life care. This support extends to the families and loved ones of patients as well as the staff who look after them in Cransley Hospice and within the local community. 5 ## What we aim to do ## Our Primary Aim In 2021-22, following a review of the impact of COVID-19 on our community, and the predicted changes to the Health and Care Act, CHT revised its main aim (object) with a view to better reflecting the role it plays in supporting the needs of people in end of life situations in the local community. It now states that CHT’s main purpose is to commission services: ## **‘For the care of patients in Cransley Hospice and the community who require palliation and end of life care’.** CHT interprets the community to be those living in and around North Northamptonshire who can benefit from a range of end-of-life care services. **----- Start of picture text -----**
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## Our Objectives CHT also revised its annual objectives during 2021-22, developing further clarity on what we do, why we do it, and the impact we wish to have. These are: 7 ## How we invest the funds The income we generate is used to support the hospice and associated services in the community for the provision of specialist care to patients with complex needs, supporting patients in their chosen place of care at the end of life, be it in the hospice or the patient’s home. We do this in partnership with the local NHS commissioning body known as the Integrated Care Board (ICB) and Cynthia Spencer Hospice Charity, enabling there to be an integrated approach across both unitary local authorities in Northamptonshire (North and West). Where the support is given is identified by the demand of patients and planned through the development of a longer-term strategy to support patients as locally as possible to their homes. Having identified what services are required, we collectively ‘commission’ providers across the county to deliver those services. The delivery is tracked by monitoring both the provision of the services (quantitative analysis) and the quality of the care and patient outcomes (qualitative analysis). People are at the heart of everything we do at CHT. This extends beyond the wellbeing of patients and their families to the hospice team and the fundraising office staff. Our volunteers are also a pivotal part of the CHT team. They support the work of the Hospice, the running of the Charity and are essential to the success of our fundraising initiatives. Without them we could not achieve our aims. In setting plans for the year, the Trustees gave consideration to the Charity Commission’s general guidance on public benefit and, in particular, to the public benefit of providing support for the relief of ill-health. “I don’t know how myself and my daughter would have managed without Hospice at Home. They are the most understanding, caring people you could hope to meet. They are very special people. The nurses would talk to my husband as a person not as a number. I cannot put into words what a lovely lot of people you have. When myself or my daughter were upset they would chat to us and listen to our concerns and help us to come to terms with what was happening.” _Janice Stuart,_ (loving wife) 8 “You don’t realise until you’re in Cransley, how important it is. “Despite her blindness, Claire got to know all the nurses by their voices and they all took a shine to her, everybody did – she was the best. “All the staff were fantastic, I can’t praise them enough. Claire was the patient, but they still made time for me and Mason, always putting us at ease. They helped make a bed up in her room so that I could be there with her and they would always come and see us to check that we were doing ok.” _Mick Massey_ (loving husband) 9 ## Performance and Achievements The impact of COVID-19 has continued to challenge the sector throughout the year, and we have seen a curtailment or continued adaption of a number of programmes as a fundraising organisation. Whilst this has been frustrating for our fundraiser supporters and our own fundraising activities, it is a credit to all concerned that we recorded a significant increase in fundraising by the end of the year, achieving just over £1m income (excluding bank interest and investment income). The team continued to innovate and adapt to the ever changing social and economic landscape finding new ways of fundraising and working. Our charity shop re-opened after closure during the COVID lockdown and demand increased steadily throughout the year. Following a review of our coffee shop provision we converted the shop into a ‘new look’, designer led outlet and ‘Curated by Cransley’ was introduced. We also took the first tentative steps into e-commerce with an online shopping function enabling people from a wider community to support us. Our legacy income is notoriously difficult to predict however we maintained a level of income from legacies in line with the previous year but below our target expectations. Our legacy marketing programme will highlight the importance of these gifts and provide easy ways for our supporters to leave a gift in their will to Cransley Hospice Trust. In the first half of the financial year, our events programme was again affected, we were able to make both Cycle for Cransley and our annual Tree of Lights remembrance events virtual. We began a gradual return to staging events in September with the new Starlight Walk staged at Boughton House with the kind permission of the Duke of Buccleuch. Its success encouraged us to gradually return our full events programme by 2022-23. Our lottery income continued to perform well during the year with income up from 2020/21. Our lottery provider Your Hospice Lottery (YHL), continued telephone fundraising due to restrictions imposed by the pandemic, this work is undertaken by a third party. We work closely with YHL to ensure that all legal requirements are met along with training for any staff undertaking calls on our behalf. Regular giving remained stable during the year and we are enormously grateful for this continued and valuable support. During 2021/22 we began to implement our revised fundraising strategy and structure. We continued to invest in our online activity throughout the year. We made further investments in our website and digital marketing channels. Our focus on community engagement and supporter experience resulted in a robust return on our investment. We are hugely grateful to our local community of individuals and businesses who continue to provide invaluable support through their continued fundraising efforts in addition to volunteering their time and expertise, sponsorship of events and gifts in kind. Our successful Christmas tree recycling project was a great example of how our business and local communities came together over a weekend providing support with equipment and planning, volunteering their time and the generation of income from the collection of trees. Gift Aid remains a valuable additional source of income and we continue to encourage our supporters to sign up where appropriate. 10 ## Marketing The investment in the Digital Co-ordinator has provided us with a significant growth in our ability to market our fundraising portfolio and the Cransley profile. An additional impact has been to enable us to inform our communities of wider end of life issues. “The nurses are absolute angels, they treated Kyle as a person, they would talk and laugh with us and most importantly they listened. Successful programmes included patient and family case studies to support our fundraising activities, most notably the Tree of Lights – Kyle’s Story - shared by Kyle’s wife Gemma Devlin, and the Memory Box project, supported by our partner health professionals, which supports families to open difficult conversations with their children, helping them to remember their special person and to be involved and included in saying their goodbyes. Our social media channels grew over the last year with Facebook page reach up 33.5%, Instagram audience growth up 55% LinkedIn audience growth up 39% and Twitter audience growth up 21%, on the previous year. We will continue to develop our social media channels for marketing and engagement activity and respond to new and emerging trends. When Kyle wanted me to stay with him, they set up a bed for me right next to his. Nothing was too much trouble. They were patient and kind to our little boy who was inquisitive about everything! _Gemma,_ (loving wife) **----- Start of picture text -----**
Source of Income
2%
Legacies
4% Events
10%
8% Direct Marketing
9%
7% Corporate (CSR)
Community
6% Trusts & Grants
General Donations
22%
Shop
E-Commerce
27%
5% Gift Aid
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“I subscribe monthly to the lottery and know this money is going to a very worthy cause” 11 _Louise Kerr_ (supporter) Our Impact with End of Life Services North Northamptonshire has a current **population of 359,500** people and makes up 46% of the population covered by the new Northamptonshire Integrated Care system which covers the two unitary authorities of West Northamptonshire and North Northamptonshire. **----- Start of picture text -----**
Number of deaths in Northamptonshire
3435 3558
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The total number of deaths in 2021-22, in North Northamptonshire was 3,435. There is no verifiable data available at present on the number of deaths with a palliative and End-of-Life care diagnosis. This pie chart illustrates the places where people died across North Northamptonshire. **----- Start of picture text -----**
The number of people and place of death
in North Northamptonshire
13
Care Homes
668
Elsewhere
74 Home
1628
Hospice
Hospital
947
105
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12 There is currently little verifiable data providing information about the use of palliative and end of life services across North Northamptonshire. Northamptonsire ICB however, has analysed data from NHFT (the main provider of palliative and end of life care) and the following pie chart illustrates the number of engagements across the services NHFT provide. **----- Start of picture text -----**
Northamptonshire EOL data
16,691 engagements in 2021 - 2022
In House Hospice Admissions
Hospice at Home Contacts
Lymphoedema Contacts
Wellbeing Day Attendees
Bereavement Support
Appointments
Spiritual Support Contacts
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We are endeavouring to develop the monitoring and reporting of information on the delivery of services and plan to provide further details in the next Annual Report. **----- Start of picture text -----**
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## Risk Management Following the experiences of managing our way through COVID-19, the Board has introduced more robust risk management processes. Corporate and operational risks were reviewed and are now part of the regular agenda at board and senior management meetings. It is worth noting that whilst for most people, COVID-19 has become an ‘experience of the past’, it still affects performance within the hospice as NHS safety regulations have limited the number of bed occupancies and NHS sickness due to COVID-19 continues to affect delivery. This has had an impact on our investment returns across the end-of-life service programme. some continued demands on the wider system, and this was recognised by NHS England who were able to compensate us for the use of the facilities to support wider needs. This amounted to a £71,000 contribution for the period of January 2022 to the end of March 2022. The impact of COVID-19 was most vividly illustrated by the significant investment the Board decided to make from reserves at the end of the year. Just over £130,000 was allocated from reserves to meet the investment made in the current end of life services programme. This was managed carefully throughout the year by the Board to ensure both CHT remained financially sound, and that service provision was not affected by funding challenges. In addition, hospices were used in the year to alleviate 14 ## Service Development and our Future Plans Cransley Hospice provides specialist care to patients and their families who have complex care needs because of a life limiting illness. Care is provided both within the hospice and to patients within their own homes by the Community Team which works in the community. The services provided through Cransley Hospice are funded through a combination of NHS and charitable monies. The Board has developed a five-year plan with the aim of growing income to enable further investment in services for the people of North Northamptonshire. Our strategy includes increasing the range of patients able to access hospice care and to develop the care available to patients in their own homes. The Board has also undertaken a comprehensive review of our service provider contractual arrangements, and is establishing a new approach to commissioning services which supports the development of services, and enables more effective monitoring of the contracts. This ensures that by achieving our fundraising targets, and controlling our costs, we will be able to provide our partners with the required income to develop services. We aim to maintain a level of charitable funding for the palliative care service relating to Cransley Hospice, this will enable Northamptonshire Healthcare (NHS) Foundation Trust to deliver its contractual obligations. Our additional investment will also enable the wider delivery of better End of Life services across North Northamptonshire. The need for a refreshed strategy for end-of-life care across Northamptonshire has increased. It is clear that inequality of access to some services exists across North Northamptonshire. We see the provision of services in an appropriate local place to be a key local outcome for patients, their families and carers. We are actively engaged in planning the development of facilities and services across North Northamptonshire with a view to ensuring the community is properly supported at a critical time in their lives. As part of this development programme, we were fortunate enough to secure funding at the end of the year to support the development of a 24/7 Single Point of Access service. This is now in the development stage with plans for it to be commissioned sometime in 2023 in conjunction with the new strategy development. **----- Start of picture text -----**
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## Trustees Annual Report on Finance and Governance ## Basis of preparation and legal framework The Trustees present the Annual Report together with the Audited Financial Statements for the year ended 31 March 2022. Full Name of Charity: Cransley Hospice Trust Registration Charity Number: 1151018 Company No 08102611 77 London Road The principal office is at: Kettering Northants NN15 7PW Directors & Trustees: Chief Executive Officer Rev Dr J S Smith Mr. Daniel Freeland Mr. Andrew Attfield Mr. Christopher Turner Mrs. D Mukhtar Ms. M Estop-Green (Vice Chair) Mr P Humphrey (Chair) Mr. P J Kelby (until1/10/21) Mr Philip Talbot (from 11/10/21) The advisors used by the Charity during the year ended 31 March 2022 were: Bankers Lloyds Bank 2 George Row Northampton NN1 1DJ Auditors Hawsons Chartered Accountants Jubilee House 32 Duncan Close Moulton Park Northampton NN3 6WL 16 ## Structure, Governance and Management Cransley Hospice Trust is governed by a board of Trustees/Directors. Its Articles of Association and Memorandum of Association were signed and dated on 12 June 2012. During the year, the Trustees made two minor amendments to the M&As, clarifying the Object more clearly and clarifying the role of a Trustee as a member of the organisation. Acting for the Trustees, the Chief Executive is responsible for the operational management of the Trust. This role is required to: - Control, manage and monitor the use of resources. - • Provide support, guidance and encouragement for all its income raising activities whilst managing and monitoring the receipt of all income. - Ensure that “best practice” is followed in the conduct of all its affairs fulfilling all of its legal responsibilities. Day to day operation of the charity is vested with the Chief Executive.The main Board monitors the integrity of the annual financial statements of the Trust and reviews the significant financial reporting issues and judgements which they contain. Newly appointed Trustees are provided with information about the Charity, including the strategy and plans, previous annual reports and accounts, budgets, policies and minutes, and information about trusteeship and the current market environment in which the charity operates. The Chair gives new members a briefing on the current policies and priorities for the Charity and ensures any additional training that their role may require is also offered. ## Public Benefit Test In accordance with Section 4 of the 2006 Charities Act the Trustees have ensured that due regard has been taken to ensure that all expenditure incurred has met the Public Benefit test. ## Risk Management The major risks to which the Charity is exposed have been identified and considered. These are included in a formal risk register and reviewed at each Board meeting and will include reference to mitigating actions. Income and expenditure is being monitored monthly and is compared with the approved budget to detect trends as part of the risk management process to avoid unforeseen calls on reserves. ## Our Fundraising Practises ## Our Approach to Fundraising We are registered with the Fundraising Regulator and are a member of both Hospice UK and the Hospice Income Generation Network. We ensure our fundraising is legal, conforms to recognised standards and follows best practice. Each team member is aware of our ethical approach to fundraising and the requirement to work within the framework provided by the Code of Fundraising Practice. The charity is also a member of the Chartered Institute of Fundraising and is required to adhere to the Code of Fundraising Practice and the standards and behaviours set out in the Chartered Institute’s Code of Conduct. We believe that every person who volunteers for us, works for us, or comes into contact with one of our fundraisers should be treated with dignity and respect, and feel that they are in a safe and supportive environment. We consider ourselves to be an integral part of the community and it is these strong relationships that enable the charity to fund care provided by Cransley Hospice. Cransley Hospice Trust’s fundraising team organises fundraising events and campaigns and co-ordinates the activities of our supporters in the community. Our work is supported by a large number of volunteers. The roles undertaken include helping raise the profile of the charity in the local community; supporting on community-led fundraising activities; various duties in our shop; helping with administration duties in our office; and collecting and counting the cash donated from the community. All of these people are valuable extensions to our network and enable us to build the best possible relationships with our supporters. All volunteer fundraisers receive an induction and follow up training to ensure that they are fully aware of our fundraising practices. We continue to work with Your Hospice Lottery (operated by St Helena Hospice) who are experts in their field and an experienced and professional team. They adhere to codes of practice set out by the Code of Fundraising Practice, The Gambling Commission, and the Lotteries Council. Quarterly meetings are held to receive updates and ensure best practice is adhered to. We use professional fundraisers as part of our contract with ‘Your Hospice Lottery’. These fundraisers are employed by Your Hospice Lottery but work on our behalf to promote the lottery. We are assured via Your Hospice Lottery that their fundraisers are all trained and follow the appropriate codes of conduct. ## Protection of the public We do not provide any incentivised pay structure around fundraising. Each team member is aware of our ethical approach to fundraising and the requirement to work within the framework provided by the Code of Fundraising Practice. The team are encouraged to build long term relationships and work to develop ongoing support. We understand the importance of building trust within the community and the fundraising team are transparent about how funds will be used, the options around restricting donations and the shortfalls that we may encounter in our fundraising activities. We work to ensure that we are compliant with the General Data Protection Regulation (GDPR). All personal data is kept securely, and we do not swap or sell personal details. When communicating with supporters we work on an opt in basis (we have been given permission to contact). We communicate with our supporters in the way that is relevant to them and recognise that to build strong meaningful relationships we need to ensure that our communications are tailored to their personal preferences. All direct marketing for specific events is undertaken by the fundraising department and we ensure that it is not unreasonably intrusive or persistent. All marketing materials contain clear instructions on how a supporter can alter their preferences or be removed from our mailing list completely. We do occasionally work on the basis of legitimate interest when communicating with supporters this only applies to our annual in memory Tree of Lights event, this communication also contains clear instructions on how a supporter can be removed from this mailing list completely. ## Complaints received from supporters As part of our obligations under the Fundraising Regulator’s code, we should highlight any complaints in our Annual Report. We have received no complaints with regard to our fundraising activities during the year. ## Reserves Policy Cransley Hospice Trust is primarily a fundraising charity relying primarily on the generosity of our donors. In order to be able to ensure that the charity’s support to hospice services in North Northamptonshire is maintained when there are variations in fundraising income caused by factors outside the charity’s control, the Trustees current aim is to maintain free reserves of 1 year’s total expenditure. At present, total unrestricted reserves are £1.51m. Of this, £986,000 has been designated for the potential reprovisioning of the hospice. Free reserves are therefore £0.52m, which represents approximately 6 months’ worth of expenditure at current levels. This is below the target set out in the policy. The charity continued to be affected by the consequences of the pandemic during 2021-22, however decided to use reserves to maintain the service provision for patients. It is in the process of rebuilding its fundraising income as the impact of the pandemic reduces, and starting to diversify income sources, and so is likely to run at a lower reserves level in the short to medium term. A 5-year plan has been agreed, that should see the charity have ability to rebuild reserves from the financial year ending March 2024. During that period, the charity’s resilience and ability to maintain grantgiving in response to financial shocks is potentially lowered. The trustees continue to maintain an open dialogue with the NHS on funding levels required to maintain and strengthen end-of-life services. This should be strengthened by the proposed new contract arrangements with NHFT in 2022-23. The Board also recognises that the new approach being taken to the reprovision of Cransley Hospice may enable them to revise their Reserves Policy and they will be reviewing this during 2022-23. ## Partnership Working and Networks Palliative care patients in the North of Northamptonshire are the main beneficiary of the charity. The delivery of palliative and end of life services is undertaken by a complex network of organisations. Most of our commissioning is undertaken by Northamptonshire Healthcare NHS Foundation Trust (NHFT), which is the largest single provider having responsibility for the ‘in house’ hospice facility (Cransley Hospice) and the Hospice at Home service. We continue to develop positive working relations with NHFT. The advent of the ‘Integrated Care System’ (ICS) in Northamptonshire (replacing the CCGs), has led us to develop a partnership with the local ICS. The realisation that a co-ordinated approach to commissioning is important for all our patients has also led to an initiative to develop a new strategy for end-of-life care for the county. It is expected this will be completed in 2023. Partnerships are very important to the Charity. During 2022 we recognised the need to work more closely with Cynthia Spencer Hospice Charity who provide similar services in West Northamptonshire. This included the 24/7 Single Point of Access programme; and work on developing a formal contract with NHFT. They are also our partners in the ICS engagement. We are also grateful to them for leading on the development of the Wellbeing service based in Northampton but enabling patients from North Northamptonshire to attend. ## Investment Policy We invest funds to generate income while, where possible maintaining the value of the assets. We take a low risk approach to the investments. Throughout the year partnerships have been formed with members of the corporate sector, the local community and membership organisations as well as individuals. As a health charity, we do not invest in companies whose primary activity is tobacco related. **----- Start of picture text -----**
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Statement of Trustees’ responsibilities in respect of the Trustees’ annual report and the financial statements The Trustees are responsible for preparing the Trustees’ Annual Report (including the Strategic 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 of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the Trustees are required to: Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. Signed on behalf of the trustees by: **Name: Paul Humphrey Chair Date: 15th December 2022** - Select suitable accounting policies and then apply them consistently; - Observe the methods and principles in the Charities SORP 2015 (FRS 102); - Make judgements 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 financial statements; - Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in operation. 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 hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. In so far as the Trustees are aware: - There is no relevant audit information of which the charitable company’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. The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. 20 CRANSLEY HOSPICE TRUST ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2022 Cransley Re￿519re6 Compa￿V No 08102611 Registered Charity Number 1151018 Annual Report and Accounls Page 1 Annual Re ort and Accounts for the ear ended 31 March 2022 Contonts Page Numbgr Introduction Foreword by the Chairman of Trustees Who we are What we aim lo do.. our objectives and activities Performan￿ and Achievement Marketing Our impact with End Of Life Services Risk Management 4-6 Cransley 0￿ratiOnal Roviow Service Development & Our plans golng forward Trustees Annual Report on Flnance and Govemance Basis of preparation and Legal Framework Structure. Governance and Management Public Benefit Test Risk Management Our Fundraising Practices Reserves Policy Partnership Working and Ne￿rkS Investment Policy 10 11-12 13 13 14 Statement of Trustees. Responsibilities 15 Detailed Accounts Statement of Financial Activities Balance Sheet Slalement of Cash Flows 16 17 18 Notes to Accounts 19-28 Audit Report 29-33 Annual Reporl and Accounts Page 2 Foreword b the Chalrrnan of Trustees of the Cransle Hos Ice Trust It is a tribute to our supporters, st8ff and volunteers of Cransley Hospice Trust that, even as the pandemic still affected all our lives, 80 many people in North Northamptonshire continued lo SUPPDrt our fundraising activities, enabling us to grow our Income again in 2021-22 to lust over £1M. I would, once again. like to pay tribute to the amazing dedication and flexibilty of the enlire CHT community who displayed such resilience and resourcefulness in so many ways during the year. Although 2022 has thankfully seen the world start lo emerge from the pandemlc. its impact in 2021 remained significant and many of our events remained 'virtual'. Of course, it has also been the case that many of the crucial end-of-lrfe care services thal we fund were also subject to restrictions relating to man8ging COVID-19 well inlo 2022. In a change lo the fonn8t of our annual report l am pleased that we are able to include some specific infomiation about the perfomiance of endvof-life care services in Northamplon5hire. l am sure you will join with me in expressing our appreciation for the dediCat￿n of all those who have supported patients, carers and families during the year across all of our care settings. HaI￿aY through the year our Chief Executs've, Peter Kelby. decided to retire. His contribution to developing Cransley Hospice Trust has been well documented over the years in previous Annual Reports and it only remains for me to thank him on behalf of all those involved in the Trust and wish him the very best for the fvture. We were delighted to recruit a new Chief Executive, Philip Talbot. who joined us in October and began the task of helping us move forward in the nexl phase of our ambi￿on to grow the Trust. The challenge of the Cransley Hospice inpatient site continued to be a key focus during the year and we worked hard wth Northamptonshire Health Foundation (NHS) Trust INHFT} to develop a p￿ferred opts.on for both organisations to pursue. This work has continued throughout the summer and an extension to the lease on the current Pipers Hill Road location has been provisionally agr88d, and fvrther plans are now being explored to develop the ts¢ilitieg on the 8lte. The security of the 'in house, faThlrly was a priority for the Board's strategy, however the Board also continued to review the strategy and set a number of objectives which are outlined in detail later in the report. With stronger strategic clarity and alignment, CHT will continue to grow and increase its ￿ntribUtIon over the coming 4 years and beyond. Looking forward, the Tntst is engaging with the development of a new strategy for end-of-life Care in partnership with 811 the providers and commissioners. As part of this development and partnership we have specifically been developing a propo8ed 2417 Single Point of Access setvice which we hope to have commissioned in 2023. This service will offer patients, families and carers better access lo end of life support services. We will also be celebrating the 251h anniversary of the opening of Cransley Hospice. We are planning a series of events to mark the occasion and we hope you will be able to continue to support us throughout the year. In dosing, I thank my fellow Trustees for th8ir lime and expertise and our staff and volunteers for their hard work and dedication to our cause. Most of all I would like to thank our supporters for their magnfficent efforts in helping us achieve our fundraising goals. Paul HUMph￿y. Chalr Annual Report and Accounts Page 3 Who We Are Cransley Hospice Trust {CHT} is an independent charity Ihat raises funds to enhance end of life care in North Northamptonshire. This care is based around the 'in house, services provided by Cransley Hospice and is managed and operaled by Northamptonshire Healthcare NHS Foundation Trust (NH￿). End of life services provide &qre for patients with life limiting illnesses including Hospice al Home which supports patients who would prefer to remain at home in the last weeks and days of life,. Palliative Lymphoedema support- Outpatient support,. and a Bereavement support service. CHT works In partnership with Cynthia Spencer Hospice Charity {CSHC) in Northamplon, providing similar servi￿$ for West Northamptonshire. CHT continually seeks to improve and expand the support Ihat makes a real differen￿ to the care of patients who require palliation and end of life care. This support extends lo Ihe families and loved ones of patients as well as the staff who look after them in Cransley Hospice and wilhin the local community. Income is generated from several sources including community and corporate fundraising. legacies, trusts and foundation giwng. individual giving, and Gift Aid. The Trust is registered as a general-purpose charity under registrat￿n number 1151018. The Trust is also a Company Llmited by Guarantee (Registration No 08102611 }. What We Alm to Do: Our Prlmary Aim In 2021-22, following a review of the Smpact of COVID-19 on our community, and the predicled ¢hang8S to the Health and Care Act. CHT revised its main aim (object) with a view lo better reflecting the role il plays in supporting the needs of people in end of life situations in the local community. It now states that CHT'S main purpose is to commission services.. 'For the care of patients in Cransley Hospice and the community who require palliation and end of life care.. CHT interprets the community to be those Iwing in and around North Northamptonshire who can benefil from a range of end-of-life care services. Annual Report and Accounts Page 4 Our Objertives CHT also revised its annual objectives during 2021-22, developing further clarity on what we do, why we do it and th8 impact we wish to have. These are.. El L¢p wvty. *trfSS frjr￿Y Pkn¥Trce r4fCf￿￿ 4or - L*t WfrX5*1ts9S Likk•JV ￿￿e5 ILrCry ll ￿0b￿S ¢4irtr¢¢ w ErK ri IrfE c￿E atsL¢k of fLW Iht ¥¥y •wbe We VJ Erd ci Lfv N IlJrt.Jwi*ire Yle lle lo m*SftDI ￿ Er4 W8 pity o trAtl< r *t IDrelPW￿eI￿W1 E Wiwjot p j.elry57￿ Annual Report and Accounts Pag8 5 How we invest the funds The income we generate is used lo support the hospice and associated services in the community for the provision of specialist care lo patients wilh cofflplex needs, supporting patients in their chosen place of care at the end of life, be il in the hospice or the patient's home. We do this in partnership with the local NHS commissioning body known as the Integraled Care Board (ICBI and Cynlhia Spencer Hospice Charity, enabling there to be an integrated approach across both unitsry local authorities in Northamptonshir8 (North and Wésti. Where the support is given is identified by thè demand of patients and planned through the development of a longer-temi slrategy to support patients as locally as possible lo their homes. Having identified whal services are required, we collectively 'commission' providers across the county lo deliver those Servi￿9. The delivery is tracked by monitoring both the provision of the ServI￿S (quantitative analysis) and the quality of the care and palient oulcomes (qualllailve analysis). People are at the heart of everylhing we do at CHT. This extends beyond the wellbeing of patients and their families to the hospice team and the fundraising office staff. Our volunle8rs ar8 also a pivolal part of the CHT leam. They support the work of the Hospice, the running of the Charity and are ess8ntial to the success of our fundraising initiatives. Wlthout Ihèm w8 could not achl8V8 our alms. In setting plans for thè year, th8 Trustees gave consideration to the Charity Commission's general guidance on public benefit and, in particular, to the public benefit of providing support for the relief of ill-health. Annual Report and Accounts Page 6 Perfom)ance and Achlovements The impact of COVID-19 has continued to challenge the sector throughout the year, and we have seen a curtailmént or continued adaption of 8 number of progr8mmes as a fundraising organisation. Whilst this has been frustratlng for our fundraiser support8rs and our own fundraislng activities. it Is a credlt to all concemed that we rewrded a significant increase in fundraising by the end of the year, achieving just over £1 m Income (exduding bank interest and Snv&stment income). The team ￿ntInUed to innovate and adapt lo the ever changing soclal and economSc landscape ffindlng new ways of fvndraising and working. Our charity shop re￿ned 8fter closure during the COVID lockdown and demand Ir￿reaSed steadily throughout the year. Following a review of our coffee shop provision we converted the shop into a 'n8w look,, designer led outlet and 'Curated by Cransley. was introduced. We also took Ihe first tentative steps into e-cornmerc8 With an online shopplng function enabling people from a wider community lo support us. Our legacy income is notoriously difficult to predict however we maintained a level of income fromlegacies in line with the previous year but below our target expectations. Our legacy marketing programme will highlight the importance of these gifts and provlde easy ways for our supporters to leave a gift in their wll to Cransley Hospice Twst. In the first half of the financi81 year. our events programme was agaln affected, we were able to make both CYC￿ for Cransley and our annual Tree of Lights remembran￿ events virtual. We began a gradual retum to staging events in Septemb6r wllh the new Starlight Walk staged al Boughton Hall with the kind peThission of the Duke of Buccleuch. Its SUGGess encouraged u5 to gradually retum our full events programme by 2022-23. Our lottery Sncome continued to perfom well during the year with income up from 2020121. Our lottery provider Your Hospice Lottery (YHLI. Gontinued telephone fundralsing due to restrictions imposed by the pandemic, this work is undertaken by a third party. We work Closely with YHL to ensure that all legal requirements are met along with training for any staff undertaking calls on our behalt. Regular giving remalned stsble during the year and we are enomously grateful for this continued and valuable support. During 2021122 we began to implement our revised fundral$ing strategy and structure. We continued to invest in our onllne activity throughout the year. We made further investrnents in our website and digital marketing channels. Our focus on community engagement and supporter experience resulted in a robust retum on our investment. W6 are hugely grateful to our local community of individuals and businesses who continue to provide invaluable support through their continued fundraising efkirts in addition to volunteering their time and expertise, sponsorship of events and gifts in kind. Our successful Christrnas tree recyding projecl wa$ a great example of how our business and local communitios came together over a weekend providing support with equipm8nt and planning, volunteering their timè and the generation of income from the collection of trees. Gift Aid remains a valuable additional 80urce of incom8 and we continue to encourage our 8UPPOrters to sign up where appropriate. Annual Report and Accounts Page 7 Markotlng The investment in the Digitsl Co-ordinator has provKJed us with a signlficanl growth in our ability to market our fundraising portfolio and the Cransley profile. An 8dditional impact has been to enable us to infom our communities of wider end of life issues. su￿88￿j1 programmes included patient and family case studles to support our fundraising activities, most notsbly the Tree of Lights - Kyle's Story - shared by his wife Gemma Devlin, and the Memory Box project, supported by our partner health professionals, which supports families to open difficult conversations with their children, helping them to remember their special person and to be involved and included in sayng their goodbyes. Our social media channels grew over the last year with Facebook page reach up 33.5LAI , Instagram audience growth up 55°A, Linkedln audien￿ growth up 390A, and Twitler audien growth up 21 /0, on Ihe previous year. We will continue to develop our social media channels for marketing and engagement activity and ￿Spond to new and emerging trends. Our Im act wlth End of Llfe serv1￿$ The following diagrams illustrate the environmènt in which Cr8nsley Hospice Trusl w0￿S and provides an overview of the engagement impact our funds hav8 in supportlng End of Life Services across North Northamptonshire. Risk Mana ement Following the experiences of managing our way through COVID-19. the Board has Inlroduced more robust risk management processes. Corporate and operational risks were reviewed and are now part of the regular agenda at board and senior manag6ment meetings. It is worth noting that whilst for r￿st wople. COVID-19 has become an 'experie￿8 of the past.. it still affects perfomiance within the hospice as NHS safety regulations have limited the number of bed occupancies and NHS sickness (lue to COVID-19 continues to affect delivery. This has had an impacl on our investment retums a¢ross the endthof-life seNiGe programme. In addition, hospices were used In the year to alleviate some continued demands on the wrder system, and this was recognised by NHS England who were able to compensate us for the use of the facilities to support wider needs. This amounted to 8 £71,000 conlrllxjtion for the period of January 2022 to the end of March 2022. The impact of COVID-19 was most vividly illustrated by the significant investment the Board decided to make from reserves at the end of the year. Just over £130,000 was allocaled from reseNes tr) meet the investment made in thg current and of life services programme. This was managed carefully throughout the year by the Board to ensure both CHT remained financially sound, and that se￿iCe provision was not affected by funding Ghallenges. Annual Report and Accounts Page 8 S•rvi¢o Develo ment and our Future Plans Cran51ey Hospice provides specialist care to patients and their families who have complex care needs because of a life limiting illness. Care is provided both within Ihe hospice and to patients within iheir own homes by the Community Team which WOTks in th& community. The services provided through Cransley Hospice are fijnded through a combination of NHS and ch8ritabl8 monies. The Board has developed a five-year plan with the aim of growing in￿rne to enable further inveslment in Sgtvices for the people of North Northamptonshire. Our Strategy includes increasing the rang6 of paiienls able to a￿esS hospice care and to develop the care available to patients in Iheir own homes. The Board has also undertakèn a comprehensive review of our service provider contractual arrangements and is establishing a new approach to commissioning seNices which supports thè development of services and enables more effective monitoring of the contracts. This ensures that by achieving our fundraising largets and controlling our Costs, we will be able to provide our partners with the required income to develop seNices. We aim lo maintain a level of charitsble funding for the palliative care service relating to Cransley Hospice, this will enable Northamptonshire HeallhGare {NHS) Foundation Trust to deliver Its contractual obligations. Our additional investment will also enable the wider delivery of better End of Life services across North Northamptonshire, The need for a refreshed strategy for end-of-life care 8cross Northamptonshlre has Sncreased. It is clear that inequallty of access to some services exists across North NorthamptonshI￿. We see the provision of seNices in an appropriate local place to be a key local outcome for patients, their lamilies and carers. We are actively engaged in planning the development of facilities and 5ervi¢es across North Northamplonshire with a view to ensuring the community is propedy supported at a critical time in their lives. As part of Ihis development programme, we were fortunate enough to secure fijnding at the end of the year to support the development of a 2417 Single Point of Access service. This is now in the development stage with plans for it lo ￿ commlssioned sometlme in 2023 in conjunction with the new strategy devek)pment. Annual Report and Accounts Page g Trustee's Annual Re rt on Finance and Governance Basi5 of proparatlon and legal framowork The Trustees present the Annual Report together wrth the Audited Financial Statements for the year ended 31 March 2022. Full Name of Charity.. Registration Charity Number: Company No Cransley Hospice Trusl 1151018 08102611 The principal Offi￿ is at.. Sl Mary's Hospital 77 London Road Kettèring Northants NN15 7PW Directors & Trustees: Rev Dr J S Smith Mr. Danlel Freeland Mr. Andrew Atffield Mr. Christopher Tumer Mrs. D Mukhtar Ms. M Eslop-Green (Vlce Chair) Mr P Humphrey (Chair) Chief ExecutNe Officer Mr. P J Kelby (unli11110121) Mr Philip Talbot lfrom 11110121) The advisors us8d by the Charity during the year ended 31 March 2022 were.. Bankers Lloyds Bank 2 George Row Northampton NN1 1DJ Audrtors Hawsons Chartered Aco)untants Jubilee House 32 Duncan Close Moulton Park Northampton NN3 6WL Annual Report and Accounts Page 10 Structure Governance and Mana ement Cransley Hospice Trust is govemed by 8 board of TrusteeslDirectors. Its Articles of Association and Memorandum of Association were signed and dated on 12 June 2012. During the year, the Trustees made minor amendmenl$ to the M&As, clarifying the Object more clearly and clarifying the role of a Trustee as a member of the organi5ation. Acting for the Trustees. the Chief Executive is r8sponslbl8 for the operational management of the Trust. This role is required to: Control. manage and monitor the use of resources. Provide support. guidance and encouragement for all Its income raising activities whilst managing and monitoring the receipt of all income. Ensure that 'best practice. is followed in the conduct of all its affairs fuffilling all of Its legal re8ponsibililies. Day to day operatK)n of the charity is vested with the Chief Executive. The maln Board monitors the irrtegrity of the annual financial statements of the Trust and review5 the significant financial reporting issues and judgements which they contain. Newly appointed Trustees a￿ provided with info￿natIon about the Charity. IriGluding the Strategy and plans. previous annual report and accounts. budgets. policies and minutes. and information about trusteeship and the current market environment in which the charity operates. The Chair glves new member5 a brief5ng on the current policies and priorities for the Charity and ensures any additional training that thelr role may require is also offered. Public Benofll Tèst In accordance with Section 4 of the 2006 Charities AGt the Trustees have ensured Ihat due regard has been tsken to ensure that all expenditure incurred has met the PubliG Benefit test. Rlsk M The major risks to which the Charlty is exposed have been identified and considered. These are included in a fomial risk register and revlewed at each Board meeting and will include reference to mitigating actions. Income and expendSture Is belng monilored monthly and is cornpa￿d with the approved budget to detect trends 8s part of the risk management process to avoid unforeseen calls on ￿seNeS. Our Fundraisln Practlses Our Approach to Fundraising We are registered with the Fundraising Regulator and are a memb&r of both Hospice UK and Ihe Hospice Income Generation NetNork. We ensure our fundrdising is legal. confoms to recognised standards and follows best pract1￿. Each team member is 8ware of our ethical approach to fundraising and the requirement to work within the framework provided by the Code of Fundraising Practi￿. The charity is also a member of the Chartered Institute of FuThJraising and is required to aJher8 to the Code of Fundraising Practice and the standards and behaviours set out in the Chartered Instilute's Code of Conduct. We believe that every person who volunleers for us, works for us, or ¢omes into conlact with one of OUT fundraisers should be treated with dignity and respect. and feel that they are in a safe and supportive environment. Annual Report and Accounts Page11 We Consider ourselves lo be an integral part of the community and it is these strong relationships that enable the charity to fund care provided by Cransley HosFMce. Cran51ey Hospice Trusvs fundraising te8m organises fundraising events and ￿MPaIgnS and co-ordinat8S the activities of our supporters in the community. Our work is supported by a large number of volunteers. The ro18s undertaken include helping raise the profile of the charity in the local community., supporting on Gommunty-led fvndraising activities., various duties in our shop- helping with administration duties in our offl(*: 8nd collecting and counting the cash donated from the community. All of these people are valuable extensions to our ne￿0t* and enablè us to bulld the best possSble relationships wtth our SUPFQrters. All volunteer fundraisers receiv8 an induction and follow up training to ensu￿ that they are fully aware of our fundraisiro practices. We continue to work wth Your Hospice Lottery (0￿￿rated by St Helena Hospice) who are experts in their field and an experienced and professlonal team. They 8dhere to codes of practice set out by the Code of Fundraising Prdctice, The Gambling Commission, and the Lotteries Council. Quarterly meetings are held to receive updates and ensure best practice is adh8r8d to. We us8 profession81 fundraisers as part of our contract with 'YDur Hospice Lottery,. These fundraisers are employed by Your Hospice Lottery but work on our behalf to promote the lottery. We are assured vla Your Hospice Lottery that their fundraisers are all trained and follow the appropriate codes of conduct. Prot•ctlon of tho publlc We do not provide any incentivised pay structure around fundraising. Each team member is aware of our ethical approach to fiJndraising and the requiremenl to work within the fr8mework provided by the Code of Fundraising Practice. The team are encouraged to build long tem relationships and work lo develop ongoing support. We understand the importance of building trust within the community and the fundraising team are transparent about how funds will be US8d. the options around restriGting donations and the shortfalls that we may encounler in our fundraislng aclivllles. We work to ensu￿ that we are compliant with the General Data Protection Regulation IGDPR). All personal data is kept securely, and we do not swap or sell personal details. When communicating with Supporters we work on an opt in basis (we have been given pemission to contsct). We communicate with our supporters in the way that is relevant to them and recognise that to build strong meaningful relationships we need to ensure that our communications are tailored to their personal preferen￿s. All dir8Ct marketing for specific events 1$ undertaken by the fundraising department and we ensur8 that it is not unreasonably intrusive or persistent. All marketing materials contain clear Instrudlons on how a supporter can alter their preferences or be removed from our mailing list completely. We do occasionally work on the basis of legitimate interest when communicating wlth supporters this only applies to our annual in merTh)ry Tree of Lights event. this communiGation also contain8 clear instructions on how a supwrter Can be removed from this mailing list ompletely. Cornplaints roceived from supporters As part of our obligations under the Fundraislng Regul8to¢s codé. we should highllght any complaints in our Annu81 RerKIrt. We have received no complaint5 Wlth regard to our fundraising activities during the ye8r. Annual Report and AGmunls Page 12 Reserves Polic Cransley Hospice Trust is primarily a fundraising charity relying primarily on the generosity of our donors. In order to be able to ensu￿ that the charity's support to hospice services in North Northamplonshire is maintained when there are variations in fundraising income caused by factors outside the charity's control, the Trustees current aim is to maintain free ￿serveS of 1 yea¢s total ex￿nditure. At present, total unreslricted ￿SeNeS are £1.51m. Of this. £986,000 has been designated for the potential reprovlslonlng of the hosplce. Free reserves are therefore £0.53m, which represenls approximately 6 monlh$' worth of expenditure at current levels. Thls Is telow the target set oul in the Folrcy. The charity continued to be affected by the consequences of the pandemic during 2021-22. however decided to use reserves to maintain the service provision for patients. It is in the process of rebuilding its fundraising income as the impa¢l of the pandemic reduces, and starting to diversify income sources, and so is likely to run at a lower ￿serveS level in the short to medium tem. A 5-year plan has b8en agreed, that should see the charity have ability to rebuild reserves from the financial y&ar ending March 2024. During that period. the charity's resilience and ability lo mainlaln grant%iving In response to financial Shocks is potentially lowered. The trustees ￿ntinue to maintain an op8n dialogu& with the NHS on funding levels required to maintain and strengthen end-of-life services. This should be strengthened by the proposed new contract atrangemenls with NHFT in 2022-23. The Board also ￿CognISeS that the new approach being taken to the reprovision of Cransley H¢spic8 may enable them lo revise their Reserves Policy and they will be reviewing this during 2022-23. Parlnershi Workin and Networks Palliative care patients in the North of Northamptonshire are the main beneficlary of the charity- The dellvery of Palllallve and End of Life services is undertaken by a ￿MPleX neiwod( of organisations. Most of our commissioning is undertaken by Northamptonshire Healthcare NHS Foundation Trust INHFTI, which is the largest single provider having responsibility for the 'in house, hospice facility (Cransley Hostmce) and the Hospice at Home service. We conb'nue to develop p￿ItIVe working relations wth NH￿. The advent of the 'lntegrated Care System, {ICS) in Northamptonshire I￿plac1ng the CCG81. has led us to develop a partnership with the loc81 ICS. The realisalion that a co-ordinated approach to commissioning is important for all our patients has also led to an initiative to develop a new strategy for erKlaof-life Ca￿ for the county- It Is expecled this will be completed in 2023. Partnerships are very important to the Charity. During 2022 we recognised Ihe need to work more closely with Cynthia Spen￿r Hospice Charity who provide simi18r Services in West Northamptonshire. This included the 2417 Single Point of Access programme. and work on developing a fomjal contrydct with NHFT. They are also our partners in the ICS engagement. We are also gra18fv1 to them for leading on the development of the Wellbeing service based in Northampton bul enabllng patients from North Northamptonshire to attend. Throughout the year p8rtner8hips have been formed with members of the corporate sector, the local community and membership organisations as well as individuals. Annual Report and Accounts Page 13 Investment Polic Wè inv6St funds to generate income while, where possible maintaining the value of the assels. We take a ksw risk approach to the investments. As a health charity. we do not invest in companies vthose primary activlty is lobacw related. Annual Report and Accounts Page 14 statomenl of Trustoe$' res onsibilitios in ros oct of tho Trustees. annual ro financial stat8m•nts ort and tho The Trustees are responsible for preparing the Trustees, Annual Report (including the Strategic Report) and the financial statements in accordance with applicable law and United Kin9(k)m Accounting Stsndards (United Kingdom Generally A¢￿pIed Accounting Practice). Company law requires Ihe Twstees lo prepare financial Stalements for each financial year. which give a Irue and fair view of the slate of affairs of the charitable company and of the incoming resources and applicatlon of resources. Including the Income and expenditure. of the Charitable company for that period. In preparing these financial 8t8tement8. the Trustees are r8qUitBd to: Select suitable accounting p)Iici8s and then apply them consislendy., observ6 the methods and principles in the Charities SORP 2015 IFRS 102)., make judgements and estimates that are r8asonable and prudent. stale whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements: prepar8 th8 financial stat8m8nts on the going concem basis unless il is inappropriate to presume that the charitsble company will Continue in operation. The Truslee6 are reswnsilJe for keeping adequate accounting records that disclose wlth reasonable accuracy at any tlme the financial posltlon of the charitable company and enable them to ensure that the financial statements compty with the Companies Act 2006. They are also responsible for safeguarding the assets of the ch8ritable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. In so far as the Trustees are aware: there is no relevant aLNJit infomiakn'on of which the charitable company's auditor is unaware; and the Trustees have taken all steps that they ought to have tsken to make themselves aware of any relevanl audlt Infomiatlon and to establlsh that the auditor is aware of that infomialion. The Trustees are responsible for the maintenance and integrity of the cotporate and financial info￿allon induded on the charitable company's website. Legislation in the United Kingdom governing the prepardtion and dissemination of financial statements may differ from legislation in other juri5diGtions. Slgned on behalf of the trustees by: Namo: Paul Humphrey Chalr Dato: Annual Report and Accounts Page 15 Cransley Hospice Trust Statement of Financial Activities (including income and expenditure account) For the year ended 31 March 2022 Unrostrlcted Re8trlctsd Total Total 31 March 31 March 2022 2021 G¢n•ral Fund• Dg61gnat8d Funds FundB Noiè Funds Fund$ £OOO's £ooo' £000'5 £OOO's £OOO's INCOME.. DoMti¢*ns & LeyGies'. Donab'ons 294 302 111 111 138 Other tradlng 8ctivities 512 512 Ir¢wme from investm8nts 13 37 80 37 Incx)me from grants WWV8ble Ttytal In¢¢Jm¢ and gndowm•nt 1.123 EXPENDITURE-. Exp￿di1￿re w Raigng fvnds 021 510 Exp•nfllturé eharitsblt xli￿tl¢s. MedKal Equlpmant purchase Cor• seM¢8 funding Charity enhanc8mentol hosplce care Gtrvernarte o)sts 542 310 99 12• 18 18 17 Total expendlturo N•t •xp•ndlluro before loswd on Invgstm•nts 1263) 171 I1￿) Nèt g&ns on investments 12 N•t rnovgrrffint In fund$ for th• year 12071 11301 Rèc0￿1111t1￿rt of funds.. Tot81 bll¥t 31 MarGh 21 736 11 1.740 1.672 Total Funds clf at 31 March 22 529 986 95 The slalemenl of financial activities includes all gains and1055es reGognisgd in the year. All income and expenditure derive from continuing aclivilies. Annual R8POrt and Accounts Page 16 Cransley Hospice Trust BalanGe Sheet (Company number 08102611) As at 31 March 2022 Unrestrlcted Total 31 March 2022 Total 31 March 2021 Funds £OOD's Genoral Dg¥igna¢*d Funds £OOO's Fynd$ Not• Fund £OOO'$ 000.5 £OOO's Flx8d asMt8: Tangi14& fixed 8ssets Investments 11 12 817 817 761 Tc441 fthd •$••l$ 817 817 783 Curront a¥s•ts: Stock Debtors aThJ prepayments Cash al bank in hand 14 122 122 14 538 95 Tctal Guwrent•M•ts 169 95 921 1.026 Liabiliti•* Creditors." AmouTts falling due Yknin OnE year 15 133 133 N•t cuTrant a888t8 529 16 95 793 •7T Total as80ts IWSB Current liabilitvJ$ 986 95 1.610 Fund¥ of th• Ch￿ty.. Unr0Stri¢W Incomè Fund8 17 $29 736 Restricted Inwme Funds D8sffJn818d Income Funds 17 17 95 11 993 T4)tal G￿rIty funds 95 1.740 The notes at pages 19 to 28 form part of these accounts The financi81 statements were approved by the trustees and signed on their behalf by.. Paul Humphrey Gharity Chair i L Ck 2o%L Annual Report and Accounts Page 17 Cransley Hospice Trust Statement of Cash Flows For the year ended 31 March 2022 Totsl 31 M8r¢h 2022 Tvlal 31 March 2021 Funds £OOO'¥ Funds £OOO's ¢a$h lows fr4)m OPBrating acti￿lIes. N•t cosh us•dln operatlng acllYftle$ 18 12151 11261 ash fl¢)ws from In￿￿Trg actlvitlos.. Diwdends from Investmants 13 37 N•t ￿5h provldgd by Inv•stln9 actlvltle8 37 ¢hang• In ¢Mh •nd Msh •qur¥alents in tho reporting perlod 11781 1921 a•h and eash •4ulv*hnt¥ 4t lh• b•glnnlng of th• rgpgrtln9 p•rfod 1,072 Cash #nd Gash equivalerts at thè and of tho r8portlng PBrlod 14 02 980 Annual Report and Accounts Page 18 Notes on the accounts 1. Summary of significant accounting policies and kay accounting estlmates (a ) General infonnation and basis of preparation The charity is a company limited by guarantee incorporated in England within the United Kingdom. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity. The address of the registered office is given in the charity infomiatlon on page 11 of these financial statements. Cransley Hospice Trust meets the definition of a public benefit entity under FRS 102. The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable lo charities p￿parIng their accounts in accordan￿ with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. The financial statements have been prepared on a going concem basis under the historic cost convention, with the exception of any investments which are included at market value. The financial statements are presented in sterlirvJ. which is Ihe functional currency of the charity and rounded lo the nearesl £1,000. The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated. (b ) Funds structure Restricted funds and designated funds are funds which are lo be used in accordance with specific restrictions imposed by the donor. Unrestricted income funds comprise those funds whlch the Trustee is free to use for any purpose in furtherance of the charitable objects of the identified special purpose fvnd. Unrestricted funds include designated funds, where the donor has made known their non-binding wishes or where the trustees. at their discretion, have created a fund for a specific purpose. (c ) Income Income is recognised once the charity has entitlement to the resources, it is probable that the resources will be re￿iVed and the monetary value of Incoming resources can be measured with sufficient reliability. Annual Report and Accounts Notes lo the accounts Page 19 (d ) Income from legacies Income from legacies are accounted for either upon receipt or where the receipt of funds in relation to the legacy is probable- this will be once Confirmation has been received from the representatives of the estatels) that payment from the legacy will be made or property transferred and once all conditions attached to the legacy have been fulfilled. (• ) Government grants Grants that do not impose specified futu￿ performance-related conditions are recognised in income when the grant proceeds are re￿iVed or receivable. Grants that impose specific future performance-related condrtions are recognised in income only when the performance-related conditions are met. Grants re￿Ived before the revenue recognltion criteria are satisfied are recognised as a liability. {f ) Expenditure Expenditure is recognised when a liability is incurred. Grant commitments are recognised when a constructive obligation arises that result in payment being unavoidable. Contractual arrangements are recognised as goods or services supplied. (g ) Irrecoverable VAT lffecoverable VAT is charged against the category of resources expended for which it was incurred. (h ) Allocatlon of overhead and support costs Overhead and support costs have been allocated directly or apportioned on an appropriate basis (refer to note 6) between Charitable Activities and Govemance Costs. Once allocation andl or apportionment of overhead and support costs has been made between Charitable Activities and Governance Costs, the cost attrlbutable to Ch8ritable Actlvltles Is apportloned across those activtties in proportion to total spend. {1 } Expendlture on raislng funds Expendrture of raising funds relate to expenses incurred to support fund raising activities, the operating costs of the shops and funding of the Fundraising teams, costs. ti ) Expenditure on charitable activities Expendlture on charitable activities comprise all costs incurred in the pursuit of the charitable objects of the charity. These costs comprise direct costs and an apportionment of overhead and support costs as shown in note 6. (k ) Governance costs Governance costs comprise all costs incurred in the g0Veman￿ of the charity. These costs include costs related to statutory audit. together with an apportionment of overhead and support costs. Annual Report and Accounts Notes to the accounts Page 20 (l }Tangible fixed assets Individual fixed assets costing £2,000 or more with a useful life of over 18 months are capitalised al cost and are depreciated over their estimated useful economic lives on a straight-line basis as follows.. Asset dass Plant and machinery Depreciation rate 33% (m ) Flxed asset Investments Any investments are staled at market value as at the balance sheet date. The statemenl of financial activities includes the net gains and losses arising on revaluation and disposals throughout the year. (n ) Net gains and losses All gains and losses are taken to the Statement of Financial Activities as they arise. Realised gains and losses on investments are calculated as the differen￿ belween sales proceeds and opening market value (purchase date rf later)- Unrealised gains and losses are calculated as the difference between the market value at the year end and opening market value (or purchase date rf later). (o ) Pensions One member of staff at the Charty is currently employed by Northamptonshire Healthcare NHS Foundation Trust with their full costs recharged to the Charity. Under this arrangement the Charity's staff are entitled to join the NHS Pensions Scheme. The Scheme is an unfunded. defined benefit scheme that covers NHS employers, General Practices and other bodies, allowed under the direction of the Secretary of State, in England and Wales. The scheme Is not designed to be run in a way that would enable partlcipating bodies to Identify their share of the underlying Scheme assets and liabilities. Therefore. the Scheme is accounted for as if it were a defined contribution scheme.. the cost to the charity of participating in the Scheme is taken as equal to the contributions payable to the Scheme for accounting period. The Scheme is a "final salary. scheme. Annual pensions are nonnally based on 1180 of the best of the last 3 years pensionable pay for each year of service. A lump sum normally equivalent to 3 years pension is payable on retirement. Annual increases are applied to pension payments at rates defined by the Pensions (Increase) Act 1971, and are based on changes in retail prices in the ￿e1ve months ending 30 September in the previous calendar year. On death, a pension of 500/0 of the memberfs pension is normally payable to the survlvlro spouse. The Scheme is subject to a full actuarial valuation every four years. and a FRS102 accounting valuation every year. The conclusion from the 2012 valuation was that the Scheme had accumulated a notional deficit of £10.3 Annual Report and Accounts Notes to th8 accounts Page 21 billion against the notional assets as at 31 March 2012. However, after taking into account the changes in the benefit and contribution structure effective from 1 April 2015, the Scheme actuary reported that employer contributions could continue at the existing rate of ]4.30￿ of penslonable pay. The valuation of scheme liability in accordance with FRS102 is carried out annually by the Scheme Actuary. The latest assessment of the liabilities of the Scheme are contained in the Scheme Actuary report. which forms part of the annual NHS Pension Scheme (England and Wales) Resou￿ Account, published annually. These accounts can be viewed on the NHS Pensions website. The Charity also operates a defined contribution pensK)n scheme. Premiums payable to the scheme are charged to the SOFA in the period to which they relate. {p ) Operating leases Rentals applicable to operating leases are charged to the SOFA over the period in which the costs are incurred. 2. Related party transactions There were no related party transactions to note during the year. 3. Analysis of income from donations and legacies 31 March 22 £OOO's 351 42 111 31 March 21 £OOO's 215 87 138 440 DonalK)ns over £Sk Other donations Legacies Total 4. Other trading activities 31 March 2022 31 March 2021 £OOO's £OOO's Events in¢ome Shop sales Lollery Total 261 142 33 171 162 512 346 Annual Report and Accounts Notes to the accounts Page 22 5. Expenditure on raising funds fRelètg8 lo notes 3 and 4 Gomknn&d) 31 March 2022 £OOO's 59 50 33 39g 65 31 Ma￿h 2021 £OOO's 33 Fundraising direct expenditurg Shop running wsls Coffee shop running costs Salaries Apportioned overheads (note 61 Legacy costs Communlty FR costs Total 58 341 42 621 510 6. Analysis and allocatlon of support costs and overhaads Total support and overhead costs of the charity excluding fundraising was £68,000. An allocation and apwrtionment of overhead and support costs has been made to Govemance Costs as outlined below and the balance has been apportioned across Expenditure on Raising funds in proportion to actual direct outlay. 31 March 2022 Total £OOO's 13 Allocated to Govornanc8 £OOO's Residual for ortionmant ort cost anal si$ £OOO's Support staff costs External Audit fees Professional fees & services Office costs Bank charges 63 Total 83 18 65 7. Expenditure on charltable activities The charity's direct expenditure in the year supported the following activities. Unrestricted Designated 8xpendilure expenditure Restricted exp8ndilure Totsl £OOO's £OOO's £OOO's £OIXJ's Grant Actlvlty Medical Equipment purchase Core seNice funding 542 542 Charity enhan¢emenl of hospice ca 116 103 658 645 Annual Report and Accounls Notes to the accounts Page 23 8. Analysis of grants The grants highlighted in note 7 We￿ made to Northamplonshire Healthcare Foundation Trust. The charity does not make grants to individuals. 9. Analysis of staff costs 31 March 2022 Total £000 31 March 2021 Total £000 Salaries and wages Social security costs other pension costs Total 393 412 30 25 14 13 437 450 Staff costs are allocated between the various categories of expenditure as follows: 31 March 2022 Total £000 31 March 2021 Total £000 E Commlcoffee shop running costs Shop running costs Charity enhancement of hospice care (unreslricled) Expenditure on raising funds Governance costs 12 29 24 35 396 343 10 Total 437 450 The average number of full-time equivalent staff during the year was 13 (2021.. 15) wlth all staff time involved in providing fundraising and support services for charitable activities. No staff member had an emolument in excess of £ 60,000 (2021: None). The charity trustees were nol paid or received any other benefits from employment with the Trust or its subsidiary in the year (2021: £nil) neither were they reimbursed expenses during the year (2021: £nil). No charity trustee received payment for professional or other services supplied to the charity (2021: £nil). The key management personnel of the charity comprise the Chief Executive Officer. The total employee benefits of the key management personnel of the Trust were £43.838 (2021.. £44,346). Annual Report and Accounts Notes to Ihe accounts Page 24 10. Auditor's remuneralion The auditorfs remuneration of £4.545 (2021: £4,875) relates to the audit fee and preparation of the charity's statutory accounts. 11. Tangible fixed assets Plant and Machlnery £000 Co¥t Al 1st April 2021 Additions At 31st March 2022 16 16 Depreclatlon Al 1st April 2021 Charge for the year Al 31st March 2022 14 16 Net Book Value Al 31 sl March 2022 Al 31st March 2021 12. Fixed asset Invastments Asat31 March 22 £000 761 56 Asat31 March 21 £000 647 114 Market value brought forward Nel gain on revalualion Market value carried forword 817 761 Holdings which individually represent in excess of 4 % of the total Investments are as follows:_ Investments In a Common Invgstment Fund M&G Charibond M&G Charifund Schroders Equity Income Tru$1 for Charities A Income Units 213 199 190 414 198 13. Totsl Gross income from Investments and cash on deposlt £36,766 of investment income was received during the financial year {2021'. £34,219). Annual Report and Accounts Notes to the accounts Page 25 14. Analysis of current assets Debtors under 1 year Asat31 March 22 £OOO's Asat31 Mar¢h 21 £OOO's Other deblors Prepayments 109 13 122 There are no long-temi deblors Analysis of cash at bank Asat31 March 22 £000'8 Asat31 March 21 £000'8 Bank balan￿ held in Lloyds current account Savings account 49 753 930 15. Analysls of current liabilities and long-terni creditors Asat31 Asat31 March 22 March 21 £000 £000 Trade Creditors Accruals Other Creditors 33 46 133 49 There are no long-tem creditors. 16. Income from grants receivabl? A8at31 March 22 £000 Asat31 ljlarch 21 £000 40 38 Covid-19 Relail Support Grant Covid-19 Job Retention Scheme NHFT hospice grant 71 80 78 Annual Report and Accounts Notes to the accounts Page 26 16. Analysis of movements and purpose of main funds by category The following prowdes analysis of movements by Special Purpose Fund and designation for the year ended 31 March 2022. Balance at31st M•reh 2022 £OOO's Balan￿ at 31st IA#r¢h 2021 £OOO's G•lnBI ILossosl on investrnenti In¢om• EKp8nditur• £OOO'$ Transfvrs £OOO'B £OOO'$ Unrestrlcted Funds GEneral Fund 736 1,034 11.2971 529 736 529 Designated Funds Nurse8 Fund R￿0￿￿On5- New ￿lI￿[n9 {71 Total 993 986 Restricted Funds New bJild fvnd EqulKjn￿tfiJDd Hospice at Hcffle Totsl 11 89 95 Totsl for Cransley Funds Purpose of large funds cran￿OY G8n8ral Fund Av8ilat4eto support the woffrt of the Cransley Hospice The following provides analysis of movements by Special Purpose Fund and designation for the year ended 31 March 2022. Designated Fund A designated fund has been set aside out of unrestrided funds by the trustees representing monles that are held on behalf of the nurses to pay for ServI￿S on site. A designated fund was set up out of general funds representing monies that are held specifically for the development and search of a new hospice site. Restricted Fund The new build fund relates to funds specifically held for the development and search for a new hospice site. Annual Report and Accounts Notes to the accounts Page 27 17. Analysis of tho charity's net assets between funds Unrestricted General Deslgnated Funds Funds £OOO'$ £OOO's Restricted Fund8 Total Funds £000'8 £OOO's Fund balan￿ at 31 MarGh 2022 Tangible fixed assets Investments Nel current assets 817 169 817 793 529 95 529 986 95 1,544 Unrestricted General Deslgnated Funds Funds £OOO's £OOO's Rgstrlct Funds Total Funds £OOO's £OOO's Fund balance at 31 March 2021 Tar@ible fixed assets Investments Nel current assets 761 232 761 977 734 11 736 11 1,740 18. Reconciliation of net movement in funds to net cash flow from operating activities Asat31 March 22 Asat31 March 21 £000'8 £OOO's Net movements in funds (Gains) on investments Dividends from investment5 Depreciation Decrease in stocks IlncreasellDecrease in debtors Increasel{Deuease) in creditors 11301 {56) {371 (114) (34) 178} 84 13 (671 Net cash us•d in op•rating activiti•s 215 126 Annual Report and Accounts Notes to the accounts Page 28 INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CRANSLEY HOSPICE TRUST Oplnlon We have audited the financial statements of Cransley Hospice Trust for the year ended 31 March 2022 which comprise the Statement of Financial Activities, Balance Sheet and the related notes. The financial reporting framework that has been applied in their preparation is applicable law and the Financial Reporting Standard 102 (United Kingdom Generally Accepted Accounling Practice). In our oplnlon the financial statements.. give a true and fair view of the state of the charitable company's affairs as at 31 March 2022. and of its incoming resources and application of resources, including its income and expenditure. for the year then ended. have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practi￿,. and have been prepared in accordance with the requirements of the Companies Act 2006. Basis for opinion We conducted our audit in accordance wlth Intemational 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 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 Stsndard, 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. Concluslons relating to going concern In auditing the financial statements. we have concluded that the trustees, use of the going concem basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have perfomied, we have not identified any material uncertainties relatlng to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concem for a period of at least twelve months from when the financlal statements are authorised for issue. Our responsibilities and the responsibilrties of the trustees with respect to going concern are described in the relevant sections of this report. Annual Report and Accounts Auditorfs opinion Page 29 Other Inforniation The other infomialion comprises the Infomiation included in the trustees, annual report, other than the financial statements and our auditorfs report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other infomiation and, except to the extent othe￿iSe explicitly stated in our report, we do not express any fomi of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so. consider whether the other infomation is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material mlsstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a Material misstatement of this other infomiation, we are required to report that fact. We have nothing to report in this regard. Oplnlons on other matters prescribed by the Companles Act 2006 In our opinion, based on the work undertaken in the course of the audit: the infomiatlon given in the trustees, report for the financial y8ar for which the financial statements are prepared is consistent with the financlal statemenls. and the trustees, report has been prepared in accordance with applicable legal requirements. Matters on which we are requirèd to report by exception In the ligh* of our knowledge and understarmjing of the charitable company and its environment obtained in the course of the audit, we have not identified malerial misstalements in the trustees, report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if. in our opinion: adequate accounting records have rv)t been kept, or retums adequate for our audit have not been received from branches not visited by us; or the financial statements are not In agreement with the accounting records and retums. or rtain disclosures of directors, remuneration specified by law are not made., or we have not received all the infomiation and explanations we require for our audit. Annual Report and Accounts Auditorfs opinion Page 30 Responsibllities of trustaes As explained more fulty in the trustees, responsibilities statement set out on page 13, the twstees (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 slatements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements. the trustees are responsible for assessing the charitable ￿mpanY'S ability to continue as a going concem, 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 rK) realistic alternative bLrt to do so. Audltor's responsibilities for the audit of the financlal ststements We have been appointed as auditor under section 144 of the Charlties Act 2011 and report in accordance with regulations made under section 154 of that Act. Our objectives are to obtain reasonable assurance about whether the financlal 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 a￿ayS detect a malerial misstaternenl 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 ecorKJmic 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 misststements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularltles, including fraud is detailed below: The charity Is subject to laws and regulations that directly and Indlrectly affect the financial statements. Based on our understanding of the charity and the environment it operates within. we detennined that the laws and regulations that were most signtficant included FRS 102, Charities Act 2011, and Health and Safety regulations. We considered the extent to which non-compliance with these laws and regulations might have a material effect on the financial ststements, including how fraud might occur. We evalualed management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override on controls). and detemined that the principal risks were related to the posting of inappropriate accounting entries to improve the charitys results for the period, and management bias in key accounting eslimates. In addition to this, we have also identified the following principal risk areas: Annual Report and Accounts Auditors opinion Page 31 Revenue recognition - there are two components to this risk, being revenue completeness and revenue cut-off. Going concem - an area that requires enhanced scrutiny in the context of the challenging economic conditions caused by the COVID-19 pandemic,. Grant expenditure- there is a risk that grants made close to the period-end could be included wÉthin the incorrect period; Portfolio valuation - there is a risk that the carrying value of the investment portfolio could be misstated due to changes in market values of shares. Audit procedures performed by the engagement team inclLNJed: Discussions with management and those responsible for legal compllance procedu￿$ within the charity to obtain an understanding of the legal and regulatory framework applicable to the charity and how the charity complies with that framework. including consideration of known or suspected instances of non-compliance with laws and regulations and fraud. Reviewing minutes of Trustees, meetings., Identifying and assessing the design effediveness of controls that management has in place to prevent and detect fraud and non-compliance with laws and regulations: Robustly challenging the Trustees. assessment of going concem" Reviewing the grant expenditure close to the period-end to gain assurance that expenditure is included in the period to which it relates; Reviewing the valuation of investment F)or1folios at the year-end. and comparing share values to market values available on that date, to ensure values are recognised as appropriate. 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 wlth a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to becom8 aware of InStan￿S 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 responsibilf(ies is available on Ihe Financial Reporting Council's website at,. https:Ilwww.frc.org.uk. This description forms part of our auditor's report. Use of our report This report is made solely to the charity's trustees. as a body, in accordance with Part 4 of the Charities (Accounts and Reports} Regulations 2008. Our audtt work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditor's report and for no other purFrf)se. To the fullest extent permitted by law. we do not accept or assume responsibility to anyone other than the charity and the charity's trustees as a body, for our audit work, for this report, or for the opinions we have formed. Annual Report and Accounts Auditors opin￿￿ Page 32 David Owens Senior Statutory Audltor for and on behalf of: Hawsons Chartered Accountants. Statutory Auditor Jubilee House 32 Duncan Close Moulton Park Northampton NN3 6WL Annual Report and A¢counts Auditoffs opIn￿n Page 33 CRANSLEY HOSPICE TRUST ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2022 Cransley Re￿519re6 Compa￿V No 08102611 Registered Charity Number 1151018 Annual Report and Accounls Page 1 Annual Re ort and Accounts for the ear ended 31 March 2022 Contonts Page Numbgr Introduction Foreword by the Chairman of Trustees Who we are What we aim lo do.. our objectives and activities Performan￿ and Achievement Marketing Our impact with End Of Life Services Risk Management 4-6 Cransley 0￿ratiOnal Roviow Service Development & Our plans golng forward Trustees Annual Report on Flnance and Govemance Basis of preparation and Legal Framework Structure. Governance and Management Public Benefit Test Risk Management Our Fundraising Practices Reserves Policy Partnership Working and Ne￿rkS Investment Policy 10 11-12 13 13 14 Statement of Trustees. Responsibilities 15 Detailed Accounts Statement of Financial Activities Balance Sheet Slalement of Cash Flows 16 17 18 Notes to Accounts 19-28 Audit Report 29-33 Annual Reporl and Accounts Page 2 Foreword b the Chalrrnan of Trustees of the Cransle Hos Ice Trust It is a tribute to our supporters, st8ff and volunteers of Cransley Hospice Trust that, even as the pandemic still affected all our lives, 80 many people in North Northamptonshire continued lo SUPPDrt our fundraising activities, enabling us to grow our Income again in 2021-22 to lust over £1M. I would, once again. like to pay tribute to the amazing dedication and flexibilty of the enlire CHT community who displayed such resilience and resourcefulness in so many ways during the year. Although 2022 has thankfully seen the world start lo emerge from the pandemlc. its impact in 2021 remained significant and many of our events remained 'virtual'. Of course, it has also been the case that many of the crucial end-of-lrfe care services thal we fund were also subject to restrictions relating to man8ging COVID-19 well inlo 2022. In a change lo the fonn8t of our annual report l am pleased that we are able to include some specific infomiation about the perfomiance of endvof-life care services in Northamplon5hire. l am sure you will join with me in expressing our appreciation for the dediCat￿n of all those who have supported patients, carers and families during the year across all of our care settings. HaI￿aY through the year our Chief Executs've, Peter Kelby. decided to retire. His contribution to developing Cransley Hospice Trust has been well documented over the years in previous Annual Reports and it only remains for me to thank him on behalf of all those involved in the Trust and wish him the very best for the fvture. We were delighted to recruit a new Chief Executive, Philip Talbot. who joined us in October and began the task of helping us move forward in the nexl phase of our ambi￿on to grow the Trust. The challenge of the Cransley Hospice inpatient site continued to be a key focus during the year and we worked hard wth Northamptonshire Health Foundation (NHS) Trust INHFT} to develop a p￿ferred opts.on for both organisations to pursue. This work has continued throughout the summer and an extension to the lease on the current Pipers Hill Road location has been provisionally agr88d, and fvrther plans are now being explored to develop the ts¢ilitieg on the 8lte. The security of the 'in house, faThlrly was a priority for the Board's strategy, however the Board also continued to review the strategy and set a number of objectives which are outlined in detail later in the report. With stronger strategic clarity and alignment, CHT will continue to grow and increase its ￿ntribUtIon over the coming 4 years and beyond. Looking forward, the Tntst is engaging with the development of a new strategy for end-of-life Care in partnership with 811 the providers and commissioners. As part of this development and partnership we have specifically been developing a propo8ed 2417 Single Point of Access setvice which we hope to have commissioned in 2023. This service will offer patients, families and carers better access lo end of life support services. We will also be celebrating the 251h anniversary of the opening of Cransley Hospice. We are planning a series of events to mark the occasion and we hope you will be able to continue to support us throughout the year. In dosing, I thank my fellow Trustees for th8ir lime and expertise and our staff and volunteers for their hard work and dedication to our cause. Most of all I would like to thank our supporters for their magnfficent efforts in helping us achieve our fundraising goals. Paul HUMph￿y. Chalr Annual Report and Accounts Page 3 Who We Are Cransley Hospice Trust {CHT} is an independent charity Ihat raises funds to enhance end of life care in North Northamptonshire. This care is based around the 'in house, services provided by Cransley Hospice and is managed and operaled by Northamptonshire Healthcare NHS Foundation Trust (NH￿). End of life services provide &qre for patients with life limiting illnesses including Hospice al Home which supports patients who would prefer to remain at home in the last weeks and days of life,. Palliative Lymphoedema support- Outpatient support,. and a Bereavement support service. CHT works In partnership with Cynthia Spencer Hospice Charity {CSHC) in Northamplon, providing similar servi￿$ for West Northamptonshire. CHT continually seeks to improve and expand the support Ihat makes a real differen￿ to the care of patients who require palliation and end of life care. This support extends lo Ihe families and loved ones of patients as well as the staff who look after them in Cransley Hospice and wilhin the local community. Income is generated from several sources including community and corporate fundraising. legacies, trusts and foundation giwng. individual giving, and Gift Aid. The Trust is registered as a general-purpose charity under registrat￿n number 1151018. The Trust is also a Company Llmited by Guarantee (Registration No 08102611 }. What We Alm to Do: Our Prlmary Aim In 2021-22, following a review of the Smpact of COVID-19 on our community, and the predicled ¢hang8S to the Health and Care Act. CHT revised its main aim (object) with a view lo better reflecting the role il plays in supporting the needs of people in end of life situations in the local community. It now states that CHT'S main purpose is to commission services.. 'For the care of patients in Cransley Hospice and the community who require palliation and end of life care.. CHT interprets the community to be those Iwing in and around North Northamptonshire who can benefil from a range of end-of-life care services. Annual Report and Accounts Page 4 Our Objertives CHT also revised its annual objectives during 2021-22, developing further clarity on what we do, why we do it and th8 impact we wish to have. These are.. El L¢p wvty. *trfSS frjr￿Y Pkn¥Trce r4fCf￿￿ 4or - L*t WfrX5*1ts9S Likk•JV ￿￿e5 ILrCry ll ￿0b￿S ¢4irtr¢¢ w ErK ri IrfE c￿E atsL¢k of fLW Iht ¥¥y •wbe We VJ Erd ci Lfv N IlJrt.Jwi*ire Yle lle lo m*SftDI ￿ Er4 W8 pity o trAtl< r *t IDrelPW￿eI￿W1 E Wiwjot p j.elry57￿ Annual Report and Accounts Pag8 5 How we invest the funds The income we generate is used lo support the hospice and associated services in the community for the provision of specialist care lo patients wilh cofflplex needs, supporting patients in their chosen place of care at the end of life, be il in the hospice or the patient's home. We do this in partnership with the local NHS commissioning body known as the Integraled Care Board (ICBI and Cynlhia Spencer Hospice Charity, enabling there to be an integrated approach across both unitsry local authorities in Northamptonshir8 (North and Wésti. Where the support is given is identified by thè demand of patients and planned through the development of a longer-temi slrategy to support patients as locally as possible lo their homes. Having identified whal services are required, we collectively 'commission' providers across the county lo deliver those Servi￿9. The delivery is tracked by monitoring both the provision of the ServI￿S (quantitative analysis) and the quality of the care and palient oulcomes (qualllailve analysis). People are at the heart of everylhing we do at CHT. This extends beyond the wellbeing of patients and their families to the hospice team and the fundraising office staff. Our volunle8rs ar8 also a pivolal part of the CHT leam. They support the work of the Hospice, the running of the Charity and are ess8ntial to the success of our fundraising initiatives. Wlthout Ihèm w8 could not achl8V8 our alms. In setting plans for thè year, th8 Trustees gave consideration to the Charity Commission's general guidance on public benefit and, in particular, to the public benefit of providing support for the relief of ill-health. Annual Report and Accounts Page 6 Perfom)ance and Achlovements The impact of COVID-19 has continued to challenge the sector throughout the year, and we have seen a curtailmént or continued adaption of 8 number of progr8mmes as a fundraising organisation. Whilst this has been frustratlng for our fundraiser support8rs and our own fundraislng activities. it Is a credlt to all concemed that we rewrded a significant increase in fundraising by the end of the year, achieving just over £1 m Income (exduding bank interest and Snv&stment income). The team ￿ntInUed to innovate and adapt lo the ever changing soclal and economSc landscape ffindlng new ways of fvndraising and working. Our charity shop re￿ned 8fter closure during the COVID lockdown and demand Ir￿reaSed steadily throughout the year. Following a review of our coffee shop provision we converted the shop into a 'n8w look,, designer led outlet and 'Curated by Cransley. was introduced. We also took Ihe first tentative steps into e-cornmerc8 With an online shopplng function enabling people from a wider community lo support us. Our legacy income is notoriously difficult to predict however we maintained a level of income fromlegacies in line with the previous year but below our target expectations. Our legacy marketing programme will highlight the importance of these gifts and provlde easy ways for our supporters to leave a gift in their wll to Cransley Hospice Twst. In the first half of the financi81 year. our events programme was agaln affected, we were able to make both CYC￿ for Cransley and our annual Tree of Lights remembran￿ events virtual. We began a gradual retum to staging events in Septemb6r wllh the new Starlight Walk staged al Boughton Hall with the kind peThission of the Duke of Buccleuch. Its SUGGess encouraged u5 to gradually retum our full events programme by 2022-23. Our lottery Sncome continued to perfom well during the year with income up from 2020121. Our lottery provider Your Hospice Lottery (YHLI. Gontinued telephone fundralsing due to restrictions imposed by the pandemic, this work is undertaken by a third party. We work Closely with YHL to ensure that all legal requirements are met along with training for any staff undertaking calls on our behalt. Regular giving remalned stsble during the year and we are enomously grateful for this continued and valuable support. During 2021122 we began to implement our revised fundral$ing strategy and structure. We continued to invest in our onllne activity throughout the year. We made further investrnents in our website and digital marketing channels. Our focus on community engagement and supporter experience resulted in a robust retum on our investment. W6 are hugely grateful to our local community of individuals and businesses who continue to provide invaluable support through their continued fundraising efkirts in addition to volunteering their time and expertise, sponsorship of events and gifts in kind. Our successful Christrnas tree recyding projecl wa$ a great example of how our business and local communitios came together over a weekend providing support with equipm8nt and planning, volunteering their timè and the generation of income from the collection of trees. Gift Aid remains a valuable additional 80urce of incom8 and we continue to encourage our 8UPPOrters to sign up where appropriate. Annual Report and Accounts Page 7 Markotlng The investment in the Digitsl Co-ordinator has provKJed us with a signlficanl growth in our ability to market our fundraising portfolio and the Cransley profile. An 8dditional impact has been to enable us to infom our communities of wider end of life issues. su￿88￿j1 programmes included patient and family case studles to support our fundraising activities, most notsbly the Tree of Lights - Kyle's Story - shared by his wife Gemma Devlin, and the Memory Box project, supported by our partner health professionals, which supports families to open difficult conversations with their children, helping them to remember their special person and to be involved and included in sayng their goodbyes. Our social media channels grew over the last year with Facebook page reach up 33.5LAI , Instagram audience growth up 55°A, Linkedln audien￿ growth up 390A, and Twitler audien growth up 21 /0, on Ihe previous year. We will continue to develop our social media channels for marketing and engagement activity and ￿Spond to new and emerging trends. Our Im act wlth End of Llfe serv1￿$ The following diagrams illustrate the environmènt in which Cr8nsley Hospice Trusl w0￿S and provides an overview of the engagement impact our funds hav8 in supportlng End of Life Services across North Northamptonshire. Risk Mana ement Following the experiences of managing our way through COVID-19. the Board has Inlroduced more robust risk management processes. Corporate and operational risks were reviewed and are now part of the regular agenda at board and senior manag6ment meetings. It is worth noting that whilst for r￿st wople. COVID-19 has become an 'experie￿8 of the past.. it still affects perfomiance within the hospice as NHS safety regulations have limited the number of bed occupancies and NHS sickness (lue to COVID-19 continues to affect delivery. This has had an impacl on our investment retums a¢ross the endthof-life seNiGe programme. In addition, hospices were used In the year to alleviate some continued demands on the wrder system, and this was recognised by NHS England who were able to compensate us for the use of the facilities to support wider needs. This amounted to 8 £71,000 conlrllxjtion for the period of January 2022 to the end of March 2022. The impact of COVID-19 was most vividly illustrated by the significant investment the Board decided to make from reserves at the end of the year. Just over £130,000 was allocaled from reseNes tr) meet the investment made in thg current and of life services programme. This was managed carefully throughout the year by the Board to ensure both CHT remained financially sound, and that se￿iCe provision was not affected by funding Ghallenges. Annual Report and Accounts Page 8 S•rvi¢o Develo ment and our Future Plans Cran51ey Hospice provides specialist care to patients and their families who have complex care needs because of a life limiting illness. Care is provided both within Ihe hospice and to patients within iheir own homes by the Community Team which WOTks in th& community. The services provided through Cransley Hospice are fijnded through a combination of NHS and ch8ritabl8 monies. The Board has developed a five-year plan with the aim of growing in￿rne to enable further inveslment in Sgtvices for the people of North Northamptonshire. Our Strategy includes increasing the rang6 of paiienls able to a￿esS hospice care and to develop the care available to patients in Iheir own homes. The Board has also undertakèn a comprehensive review of our service provider contractual arrangements and is establishing a new approach to commissioning seNices which supports thè development of services and enables more effective monitoring of the contracts. This ensures that by achieving our fundraising largets and controlling our Costs, we will be able to provide our partners with the required income to develop seNices. We aim lo maintain a level of charitsble funding for the palliative care service relating to Cransley Hospice, this will enable Northamptonshire HeallhGare {NHS) Foundation Trust to deliver Its contractual obligations. Our additional investment will also enable the wider delivery of better End of Life services across North Northamptonshire, The need for a refreshed strategy for end-of-life care 8cross Northamptonshlre has Sncreased. It is clear that inequallty of access to some services exists across North NorthamptonshI￿. We see the provision of seNices in an appropriate local place to be a key local outcome for patients, their lamilies and carers. We are actively engaged in planning the development of facilities and 5ervi¢es across North Northamplonshire with a view to ensuring the community is propedy supported at a critical time in their lives. As part of Ihis development programme, we were fortunate enough to secure fijnding at the end of the year to support the development of a 2417 Single Point of Access service. This is now in the development stage with plans for it lo ￿ commlssioned sometlme in 2023 in conjunction with the new strategy devek)pment. Annual Report and Accounts Page g Trustee's Annual Re rt on Finance and Governance Basi5 of proparatlon and legal framowork The Trustees present the Annual Report together wrth the Audited Financial Statements for the year ended 31 March 2022. Full Name of Charity.. Registration Charity Number: Company No Cransley Hospice Trusl 1151018 08102611 The principal Offi￿ is at.. Sl Mary's Hospital 77 London Road Kettèring Northants NN15 7PW Directors & Trustees: Rev Dr J S Smith Mr. Danlel Freeland Mr. Andrew Atffield Mr. Christopher Tumer Mrs. D Mukhtar Ms. M Eslop-Green (Vlce Chair) Mr P Humphrey (Chair) Chief ExecutNe Officer Mr. P J Kelby (unli11110121) Mr Philip Talbot lfrom 11110121) The advisors us8d by the Charity during the year ended 31 March 2022 were.. Bankers Lloyds Bank 2 George Row Northampton NN1 1DJ Audrtors Hawsons Chartered Aco)untants Jubilee House 32 Duncan Close Moulton Park Northampton NN3 6WL Annual Report and Accounts Page 10 Structure Governance and Mana ement Cransley Hospice Trust is govemed by 8 board of TrusteeslDirectors. Its Articles of Association and Memorandum of Association were signed and dated on 12 June 2012. During the year, the Trustees made minor amendmenl$ to the M&As, clarifying the Object more clearly and clarifying the role of a Trustee as a member of the organi5ation. Acting for the Trustees. the Chief Executive is r8sponslbl8 for the operational management of the Trust. This role is required to: Control. manage and monitor the use of resources. Provide support. guidance and encouragement for all Its income raising activities whilst managing and monitoring the receipt of all income. Ensure that 'best practice. is followed in the conduct of all its affairs fuffilling all of Its legal re8ponsibililies. Day to day operatK)n of the charity is vested with the Chief Executive. The maln Board monitors the irrtegrity of the annual financial statements of the Trust and review5 the significant financial reporting issues and judgements which they contain. Newly appointed Trustees a￿ provided with info￿natIon about the Charity. IriGluding the Strategy and plans. previous annual report and accounts. budgets. policies and minutes. and information about trusteeship and the current market environment in which the charity operates. The Chair glves new member5 a brief5ng on the current policies and priorities for the Charity and ensures any additional training that thelr role may require is also offered. Public Benofll Tèst In accordance with Section 4 of the 2006 Charities AGt the Trustees have ensured Ihat due regard has been tsken to ensure that all expenditure incurred has met the PubliG Benefit test. Rlsk M The major risks to which the Charlty is exposed have been identified and considered. These are included in a fomial risk register and revlewed at each Board meeting and will include reference to mitigating actions. Income and expendSture Is belng monilored monthly and is cornpa￿d with the approved budget to detect trends 8s part of the risk management process to avoid unforeseen calls on ￿seNeS. Our Fundraisln Practlses Our Approach to Fundraising We are registered with the Fundraising Regulator and are a memb&r of both Hospice UK and Ihe Hospice Income Generation NetNork. We ensure our fundrdising is legal. confoms to recognised standards and follows best pract1￿. Each team member is 8ware of our ethical approach to fundraising and the requirement to work within the framework provided by the Code of Fundraising Practi￿. The charity is also a member of the Chartered Institute of FuThJraising and is required to aJher8 to the Code of Fundraising Practice and the standards and behaviours set out in the Chartered Instilute's Code of Conduct. We believe that every person who volunleers for us, works for us, or ¢omes into conlact with one of OUT fundraisers should be treated with dignity and respect. and feel that they are in a safe and supportive environment. Annual Report and Accounts Page11 We Consider ourselves lo be an integral part of the community and it is these strong relationships that enable the charity to fund care provided by Cransley HosFMce. Cran51ey Hospice Trusvs fundraising te8m organises fundraising events and ￿MPaIgnS and co-ordinat8S the activities of our supporters in the community. Our work is supported by a large number of volunteers. The ro18s undertaken include helping raise the profile of the charity in the local community., supporting on Gommunty-led fvndraising activities., various duties in our shop- helping with administration duties in our offl(*: 8nd collecting and counting the cash donated from the community. All of these people are valuable extensions to our ne￿0t* and enablè us to bulld the best possSble relationships wtth our SUPFQrters. All volunteer fundraisers receiv8 an induction and follow up training to ensu￿ that they are fully aware of our fundraisiro practices. We continue to work wth Your Hospice Lottery (0￿￿rated by St Helena Hospice) who are experts in their field and an experienced and professlonal team. They 8dhere to codes of practice set out by the Code of Fundraising Prdctice, The Gambling Commission, and the Lotteries Council. Quarterly meetings are held to receive updates and ensure best practice is adh8r8d to. We us8 profession81 fundraisers as part of our contract with 'YDur Hospice Lottery,. These fundraisers are employed by Your Hospice Lottery but work on our behalf to promote the lottery. We are assured vla Your Hospice Lottery that their fundraisers are all trained and follow the appropriate codes of conduct. Prot•ctlon of tho publlc We do not provide any incentivised pay structure around fundraising. Each team member is aware of our ethical approach to fiJndraising and the requiremenl to work within the fr8mework provided by the Code of Fundraising Practice. The team are encouraged to build long tem relationships and work lo develop ongoing support. We understand the importance of building trust within the community and the fundraising team are transparent about how funds will be US8d. the options around restriGting donations and the shortfalls that we may encounler in our fundraislng aclivllles. We work to ensu￿ that we are compliant with the General Data Protection Regulation IGDPR). All personal data is kept securely, and we do not swap or sell personal details. When communicating with Supporters we work on an opt in basis (we have been given pemission to contsct). We communicate with our supporters in the way that is relevant to them and recognise that to build strong meaningful relationships we need to ensure that our communications are tailored to their personal preferen￿s. All dir8Ct marketing for specific events 1$ undertaken by the fundraising department and we ensur8 that it is not unreasonably intrusive or persistent. All marketing materials contain clear Instrudlons on how a supporter can alter their preferences or be removed from our mailing list completely. We do occasionally work on the basis of legitimate interest when communicating wlth supporters this only applies to our annual in merTh)ry Tree of Lights event. this communiGation also contain8 clear instructions on how a supwrter Can be removed from this mailing list ompletely. Cornplaints roceived from supporters As part of our obligations under the Fundraislng Regul8to¢s codé. we should highllght any complaints in our Annu81 RerKIrt. We have received no complaint5 Wlth regard to our fundraising activities during the ye8r. Annual Report and AGmunls Page 12 Reserves Polic Cransley Hospice Trust is primarily a fundraising charity relying primarily on the generosity of our donors. In order to be able to ensu￿ that the charity's support to hospice services in North Northamplonshire is maintained when there are variations in fundraising income caused by factors outside the charity's control, the Trustees current aim is to maintain free ￿serveS of 1 yea¢s total ex￿nditure. At present, total unreslricted ￿SeNeS are £1.51m. Of this. £986,000 has been designated for the potential reprovlslonlng of the hosplce. Free reserves are therefore £0.53m, which represenls approximately 6 monlh$' worth of expenditure at current levels. Thls Is telow the target set oul in the Folrcy. The charity continued to be affected by the consequences of the pandemic during 2021-22. however decided to use reserves to maintain the service provision for patients. It is in the process of rebuilding its fundraising income as the impa¢l of the pandemic reduces, and starting to diversify income sources, and so is likely to run at a lower ￿serveS level in the short to medium tem. A 5-year plan has b8en agreed, that should see the charity have ability to rebuild reserves from the financial y&ar ending March 2024. During that period. the charity's resilience and ability lo mainlaln grant%iving In response to financial Shocks is potentially lowered. The trustees ￿ntinue to maintain an op8n dialogu& with the NHS on funding levels required to maintain and strengthen end-of-life services. This should be strengthened by the proposed new contract atrangemenls with NHFT in 2022-23. The Board also ￿CognISeS that the new approach being taken to the reprovision of Cransley H¢spic8 may enable them lo revise their Reserves Policy and they will be reviewing this during 2022-23. Parlnershi Workin and Networks Palliative care patients in the North of Northamptonshire are the main beneficlary of the charity- The dellvery of Palllallve and End of Life services is undertaken by a ￿MPleX neiwod( of organisations. Most of our commissioning is undertaken by Northamptonshire Healthcare NHS Foundation Trust INHFTI, which is the largest single provider having responsibility for the 'in house, hospice facility (Cransley Hostmce) and the Hospice at Home service. We conb'nue to develop p￿ItIVe working relations wth NH￿. The advent of the 'lntegrated Care System, {ICS) in Northamptonshire I￿plac1ng the CCG81. has led us to develop a partnership with the loc81 ICS. The realisalion that a co-ordinated approach to commissioning is important for all our patients has also led to an initiative to develop a new strategy for erKlaof-life Ca￿ for the county- It Is expecled this will be completed in 2023. Partnerships are very important to the Charity. During 2022 we recognised Ihe need to work more closely with Cynthia Spen￿r Hospice Charity who provide simi18r Services in West Northamptonshire. This included the 2417 Single Point of Access programme. and work on developing a fomjal contrydct with NHFT. They are also our partners in the ICS engagement. We are also gra18fv1 to them for leading on the development of the Wellbeing service based in Northampton bul enabllng patients from North Northamptonshire to attend. Throughout the year p8rtner8hips have been formed with members of the corporate sector, the local community and membership organisations as well as individuals. Annual Report and Accounts Page 13 Investment Polic Wè inv6St funds to generate income while, where possible maintaining the value of the assels. We take a ksw risk approach to the investments. As a health charity. we do not invest in companies vthose primary activlty is lobacw related. Annual Report and Accounts Page 14 statomenl of Trustoe$' res onsibilitios in ros oct of tho Trustees. annual ro financial stat8m•nts ort and tho The Trustees are responsible for preparing the Trustees, Annual Report (including the Strategic Report) and the financial statements in accordance with applicable law and United Kin9(k)m Accounting Stsndards (United Kingdom Generally A¢￿pIed Accounting Practice). Company law requires Ihe Twstees lo prepare financial Stalements for each financial year. which give a Irue and fair view of the slate of affairs of the charitable company and of the incoming resources and applicatlon of resources. Including the Income and expenditure. of the Charitable company for that period. In preparing these financial 8t8tement8. the Trustees are r8qUitBd to: Select suitable accounting p)Iici8s and then apply them consislendy., observ6 the methods and principles in the Charities SORP 2015 IFRS 102)., make judgements and estimates that are r8asonable and prudent. stale whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements: prepar8 th8 financial stat8m8nts on the going concem basis unless il is inappropriate to presume that the charitsble company will Continue in operation. The Truslee6 are reswnsilJe for keeping adequate accounting records that disclose wlth reasonable accuracy at any tlme the financial posltlon of the charitable company and enable them to ensure that the financial statements compty with the Companies Act 2006. They are also responsible for safeguarding the assets of the ch8ritable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. In so far as the Trustees are aware: there is no relevant aLNJit infomiakn'on of which the charitable company's auditor is unaware; and the Trustees have taken all steps that they ought to have tsken to make themselves aware of any relevanl audlt Infomiatlon and to establlsh that the auditor is aware of that infomialion. The Trustees are responsible for the maintenance and integrity of the cotporate and financial info￿allon induded on the charitable company's website. Legislation in the United Kingdom governing the prepardtion and dissemination of financial statements may differ from legislation in other juri5diGtions. Slgned on behalf of the trustees by: Namo: Paul Humphrey Chalr Dato: Annual Report and Accounts Page 15 Cransley Hospice Trust Statement of Financial Activities (including income and expenditure account) For the year ended 31 March 2022 Unrostrlcted Re8trlctsd Total Total 31 March 31 March 2022 2021 G¢n•ral Fund• Dg61gnat8d Funds FundB Noiè Funds Fund$ £OOO's £ooo' £000'5 £OOO's £OOO's INCOME.. DoMti¢*ns & LeyGies'. Donab'ons 294 302 111 111 138 Other tradlng 8ctivities 512 512 Ir¢wme from investm8nts 13 37 80 37 Incx)me from grants WWV8ble Ttytal In¢¢Jm¢ and gndowm•nt 1.123 EXPENDITURE-. Exp￿di1￿re w Raigng fvnds 021 510 Exp•nfllturé eharitsblt xli￿tl¢s. MedKal Equlpmant purchase Cor• seM¢8 funding Charity enhanc8mentol hosplce care Gtrvernarte o)sts 542 310 99 12• 18 18 17 Total expendlturo N•t •xp•ndlluro before loswd on Invgstm•nts 1263) 171 I1￿) Nèt g&ns on investments 12 N•t rnovgrrffint In fund$ for th• year 12071 11301 Rèc0￿1111t1￿rt of funds.. Tot81 bll¥t 31 MarGh 21 736 11 1.740 1.672 Total Funds clf at 31 March 22 529 986 95 The slalemenl of financial activities includes all gains and1055es reGognisgd in the year. All income and expenditure derive from continuing aclivilies. Annual R8POrt and Accounts Page 16 Cransley Hospice Trust BalanGe Sheet (Company number 08102611) As at 31 March 2022 Unrestrlcted Total 31 March 2022 Total 31 March 2021 Funds £OOD's Genoral Dg¥igna¢*d Funds £OOO's Fynd$ Not• Fund £OOO'$ 000.5 £OOO's Flx8d asMt8: Tangi14& fixed 8ssets Investments 11 12 817 817 761 Tc441 fthd •$••l$ 817 817 783 Curront a¥s•ts: Stock Debtors aThJ prepayments Cash al bank in hand 14 122 122 14 538 95 Tctal Guwrent•M•ts 169 95 921 1.026 Liabiliti•* Creditors." AmouTts falling due Yknin OnE year 15 133 133 N•t cuTrant a888t8 529 16 95 793 •7T Total as80ts IWSB Current liabilitvJ$ 986 95 1.610 Fund¥ of th• Ch￿ty.. Unr0Stri¢W Incomè Fund8 17 $29 736 Restricted Inwme Funds D8sffJn818d Income Funds 17 17 95 11 993 T4)tal G￿rIty funds 95 1.740 The notes at pages 19 to 28 form part of these accounts The financi81 statements were approved by the trustees and signed on their behalf by.. Paul Humphrey Gharity Chair i L Ck 2o%L Annual Report and Accounts Page 17 Cransley Hospice Trust Statement of Cash Flows For the year ended 31 March 2022 Totsl 31 M8r¢h 2022 Tvlal 31 March 2021 Funds £OOO'¥ Funds £OOO's ¢a$h lows fr4)m OPBrating acti￿lIes. N•t cosh us•dln operatlng acllYftle$ 18 12151 11261 ash fl¢)ws from In￿￿Trg actlvitlos.. Diwdends from Investmants 13 37 N•t ￿5h provldgd by Inv•stln9 actlvltle8 37 ¢hang• In ¢Mh •nd Msh •qur¥alents in tho reporting perlod 11781 1921 a•h and eash •4ulv*hnt¥ 4t lh• b•glnnlng of th• rgpgrtln9 p•rfod 1,072 Cash #nd Gash equivalerts at thè and of tho r8portlng PBrlod 14 02 980 Annual Report and Accounts Page 18 Notes on the accounts 1. Summary of significant accounting policies and kay accounting estlmates (a ) General infonnation and basis of preparation The charity is a company limited by guarantee incorporated in England within the United Kingdom. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity. The address of the registered office is given in the charity infomiatlon on page 11 of these financial statements. Cransley Hospice Trust meets the definition of a public benefit entity under FRS 102. The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable lo charities p￿parIng their accounts in accordan￿ with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. The financial statements have been prepared on a going concem basis under the historic cost convention, with the exception of any investments which are included at market value. The financial statements are presented in sterlirvJ. which is Ihe functional currency of the charity and rounded lo the nearesl £1,000. The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated. (b ) Funds structure Restricted funds and designated funds are funds which are lo be used in accordance with specific restrictions imposed by the donor. Unrestricted income funds comprise those funds whlch the Trustee is free to use for any purpose in furtherance of the charitable objects of the identified special purpose fvnd. Unrestricted funds include designated funds, where the donor has made known their non-binding wishes or where the trustees. at their discretion, have created a fund for a specific purpose. (c ) Income Income is recognised once the charity has entitlement to the resources, it is probable that the resources will be re￿iVed and the monetary value of Incoming resources can be measured with sufficient reliability. Annual Report and Accounts Notes lo the accounts Page 19 (d ) Income from legacies Income from legacies are accounted for either upon receipt or where the receipt of funds in relation to the legacy is probable- this will be once Confirmation has been received from the representatives of the estatels) that payment from the legacy will be made or property transferred and once all conditions attached to the legacy have been fulfilled. (• ) Government grants Grants that do not impose specified futu￿ performance-related conditions are recognised in income when the grant proceeds are re￿iVed or receivable. Grants that impose specific future performance-related condrtions are recognised in income only when the performance-related conditions are met. Grants re￿Ived before the revenue recognltion criteria are satisfied are recognised as a liability. {f ) Expenditure Expenditure is recognised when a liability is incurred. Grant commitments are recognised when a constructive obligation arises that result in payment being unavoidable. Contractual arrangements are recognised as goods or services supplied. (g ) Irrecoverable VAT lffecoverable VAT is charged against the category of resources expended for which it was incurred. (h ) Allocatlon of overhead and support costs Overhead and support costs have been allocated directly or apportioned on an appropriate basis (refer to note 6) between Charitable Activities and Govemance Costs. Once allocation andl or apportionment of overhead and support costs has been made between Charitable Activities and Governance Costs, the cost attrlbutable to Ch8ritable Actlvltles Is apportloned across those activtties in proportion to total spend. {1 } Expendlture on raislng funds Expendrture of raising funds relate to expenses incurred to support fund raising activities, the operating costs of the shops and funding of the Fundraising teams, costs. ti ) Expenditure on charitable activities Expendlture on charitable activities comprise all costs incurred in the pursuit of the charitable objects of the charity. These costs comprise direct costs and an apportionment of overhead and support costs as shown in note 6. (k ) Governance costs Governance costs comprise all costs incurred in the g0Veman￿ of the charity. These costs include costs related to statutory audit. together with an apportionment of overhead and support costs. Annual Report and Accounts Notes to the accounts Page 20 (l }Tangible fixed assets Individual fixed assets costing £2,000 or more with a useful life of over 18 months are capitalised al cost and are depreciated over their estimated useful economic lives on a straight-line basis as follows.. Asset dass Plant and machinery Depreciation rate 33% (m ) Flxed asset Investments Any investments are staled at market value as at the balance sheet date. The statemenl of financial activities includes the net gains and losses arising on revaluation and disposals throughout the year. (n ) Net gains and losses All gains and losses are taken to the Statement of Financial Activities as they arise. Realised gains and losses on investments are calculated as the differen￿ belween sales proceeds and opening market value (purchase date rf later)- Unrealised gains and losses are calculated as the difference between the market value at the year end and opening market value (or purchase date rf later). (o ) Pensions One member of staff at the Charty is currently employed by Northamptonshire Healthcare NHS Foundation Trust with their full costs recharged to the Charity. Under this arrangement the Charity's staff are entitled to join the NHS Pensions Scheme. The Scheme is an unfunded. defined benefit scheme that covers NHS employers, General Practices and other bodies, allowed under the direction of the Secretary of State, in England and Wales. The scheme Is not designed to be run in a way that would enable partlcipating bodies to Identify their share of the underlying Scheme assets and liabilities. Therefore. the Scheme is accounted for as if it were a defined contribution scheme.. the cost to the charity of participating in the Scheme is taken as equal to the contributions payable to the Scheme for accounting period. The Scheme is a "final salary. scheme. Annual pensions are nonnally based on 1180 of the best of the last 3 years pensionable pay for each year of service. A lump sum normally equivalent to 3 years pension is payable on retirement. Annual increases are applied to pension payments at rates defined by the Pensions (Increase) Act 1971, and are based on changes in retail prices in the ￿e1ve months ending 30 September in the previous calendar year. On death, a pension of 500/0 of the memberfs pension is normally payable to the survlvlro spouse. The Scheme is subject to a full actuarial valuation every four years. and a FRS102 accounting valuation every year. The conclusion from the 2012 valuation was that the Scheme had accumulated a notional deficit of £10.3 Annual Report and Accounts Notes to th8 accounts Page 21 billion against the notional assets as at 31 March 2012. However, after taking into account the changes in the benefit and contribution structure effective from 1 April 2015, the Scheme actuary reported that employer contributions could continue at the existing rate of ]4.30￿ of penslonable pay. The valuation of scheme liability in accordance with FRS102 is carried out annually by the Scheme Actuary. The latest assessment of the liabilities of the Scheme are contained in the Scheme Actuary report. which forms part of the annual NHS Pension Scheme (England and Wales) Resou￿ Account, published annually. These accounts can be viewed on the NHS Pensions website. The Charity also operates a defined contribution pensK)n scheme. Premiums payable to the scheme are charged to the SOFA in the period to which they relate. {p ) Operating leases Rentals applicable to operating leases are charged to the SOFA over the period in which the costs are incurred. 2. Related party transactions There were no related party transactions to note during the year. 3. Analysis of income from donations and legacies 31 March 22 £OOO's 351 42 111 31 March 21 £OOO's 215 87 138 440 DonalK)ns over £Sk Other donations Legacies Total 4. Other trading activities 31 March 2022 31 March 2021 £OOO's £OOO's Events in¢ome Shop sales Lollery Total 261 142 33 171 162 512 346 Annual Report and Accounts Notes to the accounts Page 22 5. Expenditure on raising funds fRelètg8 lo notes 3 and 4 Gomknn&d) 31 March 2022 £OOO's 59 50 33 39g 65 31 Ma￿h 2021 £OOO's 33 Fundraising direct expenditurg Shop running wsls Coffee shop running costs Salaries Apportioned overheads (note 61 Legacy costs Communlty FR costs Total 58 341 42 621 510 6. Analysis and allocatlon of support costs and overhaads Total support and overhead costs of the charity excluding fundraising was £68,000. An allocation and apwrtionment of overhead and support costs has been made to Govemance Costs as outlined below and the balance has been apportioned across Expenditure on Raising funds in proportion to actual direct outlay. 31 March 2022 Total £OOO's 13 Allocated to Govornanc8 £OOO's Residual for ortionmant ort cost anal si$ £OOO's Support staff costs External Audit fees Professional fees & services Office costs Bank charges 63 Total 83 18 65 7. Expenditure on charltable activities The charity's direct expenditure in the year supported the following activities. Unrestricted Designated 8xpendilure expenditure Restricted exp8ndilure Totsl £OOO's £OOO's £OOO's £OIXJ's Grant Actlvlty Medical Equipment purchase Core seNice funding 542 542 Charity enhan¢emenl of hospice ca 116 103 658 645 Annual Report and Accounls Notes to the accounts Page 23 8. Analysis of grants The grants highlighted in note 7 We￿ made to Northamplonshire Healthcare Foundation Trust. The charity does not make grants to individuals. 9. Analysis of staff costs 31 March 2022 Total £000 31 March 2021 Total £000 Salaries and wages Social security costs other pension costs Total 393 412 30 25 14 13 437 450 Staff costs are allocated between the various categories of expenditure as follows: 31 March 2022 Total £000 31 March 2021 Total £000 E Commlcoffee shop running costs Shop running costs Charity enhancement of hospice care (unreslricled) Expenditure on raising funds Governance costs 12 29 24 35 396 343 10 Total 437 450 The average number of full-time equivalent staff during the year was 13 (2021.. 15) wlth all staff time involved in providing fundraising and support services for charitable activities. No staff member had an emolument in excess of £ 60,000 (2021: None). The charity trustees were nol paid or received any other benefits from employment with the Trust or its subsidiary in the year (2021: £nil) neither were they reimbursed expenses during the year (2021: £nil). No charity trustee received payment for professional or other services supplied to the charity (2021: £nil). The key management personnel of the charity comprise the Chief Executive Officer. The total employee benefits of the key management personnel of the Trust were £43.838 (2021.. £44,346). Annual Report and Accounts Notes to Ihe accounts Page 24 10. Auditor's remuneralion The auditorfs remuneration of £4.545 (2021: £4,875) relates to the audit fee and preparation of the charity's statutory accounts. 11. Tangible fixed assets Plant and Machlnery £000 Co¥t Al 1st April 2021 Additions At 31st March 2022 16 16 Depreclatlon Al 1st April 2021 Charge for the year Al 31st March 2022 14 16 Net Book Value Al 31 sl March 2022 Al 31st March 2021 12. Fixed asset Invastments Asat31 March 22 £000 761 56 Asat31 March 21 £000 647 114 Market value brought forward Nel gain on revalualion Market value carried forword 817 761 Holdings which individually represent in excess of 4 % of the total Investments are as follows:_ Investments In a Common Invgstment Fund M&G Charibond M&G Charifund Schroders Equity Income Tru$1 for Charities A Income Units 213 199 190 414 198 13. Totsl Gross income from Investments and cash on deposlt £36,766 of investment income was received during the financial year {2021'. £34,219). Annual Report and Accounts Notes to the accounts Page 25 14. Analysis of current assets Debtors under 1 year Asat31 March 22 £OOO's Asat31 Mar¢h 21 £OOO's Other deblors Prepayments 109 13 122 There are no long-temi deblors Analysis of cash at bank Asat31 March 22 £000'8 Asat31 March 21 £000'8 Bank balan￿ held in Lloyds current account Savings account 49 753 930 15. Analysls of current liabilities and long-terni creditors Asat31 Asat31 March 22 March 21 £000 £000 Trade Creditors Accruals Other Creditors 33 46 133 49 There are no long-tem creditors. 16. Income from grants receivabl? A8at31 March 22 £000 Asat31 ljlarch 21 £000 40 38 Covid-19 Relail Support Grant Covid-19 Job Retention Scheme NHFT hospice grant 71 80 78 Annual Report and Accounts Notes to the accounts Page 26 16. Analysis of movements and purpose of main funds by category The following prowdes analysis of movements by Special Purpose Fund and designation for the year ended 31 March 2022. Balance at31st M•reh 2022 £OOO's Balan￿ at 31st IA#r¢h 2021 £OOO's G•lnBI ILossosl on investrnenti In¢om• EKp8nditur• £OOO'$ Transfvrs £OOO'B £OOO'$ Unrestrlcted Funds GEneral Fund 736 1,034 11.2971 529 736 529 Designated Funds Nurse8 Fund R￿0￿￿On5- New ￿lI￿[n9 {71 Total 993 986 Restricted Funds New bJild fvnd EqulKjn￿tfiJDd Hospice at Hcffle Totsl 11 89 95 Totsl for Cransley Funds Purpose of large funds cran￿OY G8n8ral Fund Av8ilat4eto support the woffrt of the Cransley Hospice The following provides analysis of movements by Special Purpose Fund and designation for the year ended 31 March 2022. Designated Fund A designated fund has been set aside out of unrestrided funds by the trustees representing monles that are held on behalf of the nurses to pay for ServI￿S on site. A designated fund was set up out of general funds representing monies that are held specifically for the development and search of a new hospice site. Restricted Fund The new build fund relates to funds specifically held for the development and search for a new hospice site. Annual Report and Accounts Notes to the accounts Page 27 17. Analysis of tho charity's net assets between funds Unrestricted General Deslgnated Funds Funds £OOO'$ £OOO's Restricted Fund8 Total Funds £000'8 £OOO's Fund balan￿ at 31 MarGh 2022 Tangible fixed assets Investments Nel current assets 817 169 817 793 529 95 529 986 95 1,544 Unrestricted General Deslgnated Funds Funds £OOO's £OOO's Rgstrlct Funds Total Funds £OOO's £OOO's Fund balance at 31 March 2021 Tar@ible fixed assets Investments Nel current assets 761 232 761 977 734 11 736 11 1,740 18. Reconciliation of net movement in funds to net cash flow from operating activities Asat31 March 22 Asat31 March 21 £000'8 £OOO's Net movements in funds (Gains) on investments Dividends from investment5 Depreciation Decrease in stocks IlncreasellDecrease in debtors Increasel{Deuease) in creditors 11301 {56) {371 (114) (34) 178} 84 13 (671 Net cash us•d in op•rating activiti•s 215 126 Annual Report and Accounts Notes to the accounts Page 28 INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CRANSLEY HOSPICE TRUST Oplnlon We have audited the financial statements of Cransley Hospice Trust for the year ended 31 March 2022 which comprise the Statement of Financial Activities, Balance Sheet and the related notes. The financial reporting framework that has been applied in their preparation is applicable law and the Financial Reporting Standard 102 (United Kingdom Generally Accepted Accounling Practice). In our oplnlon the financial statements.. give a true and fair view of the state of the charitable company's affairs as at 31 March 2022. and of its incoming resources and application of resources, including its income and expenditure. for the year then ended. have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practi￿,. and have been prepared in accordance with the requirements of the Companies Act 2006. Basis for opinion We conducted our audit in accordance wlth Intemational 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 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 Stsndard, 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. Concluslons relating to going concern In auditing the financial statements. we have concluded that the trustees, use of the going concem basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have perfomied, we have not identified any material uncertainties relatlng to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concem for a period of at least twelve months from when the financlal statements are authorised for issue. Our responsibilities and the responsibilrties of the trustees with respect to going concern are described in the relevant sections of this report. Annual Report and Accounts Auditorfs opinion Page 29 Other Inforniation The other infomialion comprises the Infomiation included in the trustees, annual report, other than the financial statements and our auditorfs report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other infomiation and, except to the extent othe￿iSe explicitly stated in our report, we do not express any fomi of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so. consider whether the other infomation is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material mlsstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a Material misstatement of this other infomiation, we are required to report that fact. We have nothing to report in this regard. Oplnlons on other matters prescribed by the Companles Act 2006 In our opinion, based on the work undertaken in the course of the audit: the infomiatlon given in the trustees, report for the financial y8ar for which the financial statements are prepared is consistent with the financlal statemenls. and the trustees, report has been prepared in accordance with applicable legal requirements. Matters on which we are requirèd to report by exception In the ligh* of our knowledge and understarmjing of the charitable company and its environment obtained in the course of the audit, we have not identified malerial misstalements in the trustees, report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if. in our opinion: adequate accounting records have rv)t been kept, or retums adequate for our audit have not been received from branches not visited by us; or the financial statements are not In agreement with the accounting records and retums. or rtain disclosures of directors, remuneration specified by law are not made., or we have not received all the infomiation and explanations we require for our audit. Annual Report and Accounts Auditorfs opinion Page 30 Responsibllities of trustaes As explained more fulty in the trustees, responsibilities statement set out on page 13, the twstees (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 slatements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements. the trustees are responsible for assessing the charitable ￿mpanY'S ability to continue as a going concem, 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 rK) realistic alternative bLrt to do so. Audltor's responsibilities for the audit of the financlal ststements We have been appointed as auditor under section 144 of the Charlties Act 2011 and report in accordance with regulations made under section 154 of that Act. Our objectives are to obtain reasonable assurance about whether the financlal 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 a￿ayS detect a malerial misstaternenl 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 ecorKJmic 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 misststements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularltles, including fraud is detailed below: The charity Is subject to laws and regulations that directly and Indlrectly affect the financial statements. Based on our understanding of the charity and the environment it operates within. we detennined that the laws and regulations that were most signtficant included FRS 102, Charities Act 2011, and Health and Safety regulations. We considered the extent to which non-compliance with these laws and regulations might have a material effect on the financial ststements, including how fraud might occur. We evalualed management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override on controls). and detemined that the principal risks were related to the posting of inappropriate accounting entries to improve the charitys results for the period, and management bias in key accounting eslimates. In addition to this, we have also identified the following principal risk areas: Annual Report and Accounts Auditors opinion Page 31 Revenue recognition - there are two components to this risk, being revenue completeness and revenue cut-off. Going concem - an area that requires enhanced scrutiny in the context of the challenging economic conditions caused by the COVID-19 pandemic,. Grant expenditure- there is a risk that grants made close to the period-end could be included wÉthin the incorrect period; Portfolio valuation - there is a risk that the carrying value of the investment portfolio could be misstated due to changes in market values of shares. Audit procedures performed by the engagement team inclLNJed: Discussions with management and those responsible for legal compllance procedu￿$ within the charity to obtain an understanding of the legal and regulatory framework applicable to the charity and how the charity complies with that framework. including consideration of known or suspected instances of non-compliance with laws and regulations and fraud. Reviewing minutes of Trustees, meetings., Identifying and assessing the design effediveness of controls that management has in place to prevent and detect fraud and non-compliance with laws and regulations: Robustly challenging the Trustees. assessment of going concem" Reviewing the grant expenditure close to the period-end to gain assurance that expenditure is included in the period to which it relates; Reviewing the valuation of investment F)or1folios at the year-end. and comparing share values to market values available on that date, to ensure values are recognised as appropriate. 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 wlth a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to becom8 aware of InStan￿S 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 responsibilf(ies is available on Ihe Financial Reporting Council's website at,. https:Ilwww.frc.org.uk. This description forms part of our auditor's report. Use of our report This report is made solely to the charity's trustees. as a body, in accordance with Part 4 of the Charities (Accounts and Reports} Regulations 2008. Our audtt work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditor's report and for no other purFrf)se. To the fullest extent permitted by law. we do not accept or assume responsibility to anyone other than the charity and the charity's trustees as a body, for our audit work, for this report, or for the opinions we have formed. Annual Report and Accounts Auditors opin￿￿ Page 32 David Owens Senior Statutory Audltor for and on behalf of: Hawsons Chartered Accountants. Statutory Auditor Jubilee House 32 Duncan Close Moulton Park Northampton NN3 6WL Annual Report and A¢counts Auditoffs opIn￿n Page 33