St John's Hospice North Lancashire and South Lakes Trustees, Report and Financial Statements For the year ended 31 March 2021 Ilyr t John's Hospi¢p n & Supii'ort, . st'John'5 Hospice North LanEashirR. and South Lakes is a charitable Incorporated organlsptlo.n reglstetdd iri'Englaknd with charity number 1157030 ST JOHN'S HOSPICE NORTH LANCASHIRE AND SOUTH LAKES TRUSTEES, ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021 CONTENTS Page Trustees, Annual Report Independent ALJdilors Report lo the Trustees 19 Consolidated Slalemenl of Financial Activities 23 Charity Slalement of Financial Activities 24 Consolidated Balance Sheet 25 Charity Balance Sheet 26 Group and Charity Cash Flow Slalements 27 Notes lo the accounts 28 ST JOHN'S HOSPICE NORTH LANCASHIRE AND SOUTH LAKES TRUSTEES. ANNUAL REPORT ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2021 BACKGROUND TO THE CHARITY Sl John's Hospice North Lancashire and South Lakes I'lhe Charity I was founded on 1 April 2014 as a charitable incorporated organisalion I'CIO l and registered with the Charity Commission on 13 May 2014 with Charity Number 1157030. The CIO was formed lo lake over the assets and undertakings of North Lancashire and Lakeland Continuing Care Trust, an unincorporated charity wilh ¢harily number 510667 Ihal was founded in 1980 lo establish a hospice for residents of Pjorth Lancashire and the South Lakes, These assets and undertakings were transferred on 1 October 2014. The objectives and trading name of the new CIO are identical lo those ol the unin¢orporaled charity, which was removed from the Register of Charities. The Charity is known as St John's Hospice l.the Hospice l. The principal object of Sl John's Hospi￿, which opened ils doors lo patients in December 1985, is the relief and care of persons of either sex Iwilhout regard to race or creed) who are suffering from any ¢hroni¢ or terminal illness or from any disability or disease. Thes& aims are achieved by inpalienl care, oulpalienl clinics, day hospice Icurrenlly suspended during the currtsnl Covid-19 pandemic), domiciliary care and assoGialed edu¢alional initiatives. The running costs of the Hospice are mel by dis¢relionary grants from the local Clinical Commissioning Group and by funds raised by the Charity supported by the remarkable generosity of the local community. The Hospice places great value on ils connections with a number of public sector and voluntary OTganisalions that Cooperate with il and at limes provide joint services. Our Vlslon Pulling local patients and families al the heart of everything we do will ensure that on Ihejourney towards the end of life, we provide the right Care, in the right place, al the right lime. Our Mission Ensuring our services are clearly understood and accessible lo those in need where and when required. Love Care Supporb Everybhing TrancLuiliby Hope-Sa-feby"- Peace Dignlby ST JOHN'S HOSPICE NORTH LANCASHIRE AND SOUTH LAKES TRUSTEES, ANNUAL REPORT ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2021 Ourvalues Care- We will provide first Class care, delivered by competent, committed people who pul the patient at the heart of all we do compa￿10n- We will Ireal evèryone with respect, dignity and empathy Collaboration We will work with others lo ensure that patients and families receive the best end of life care possible Charity - We will provide care free of charge lo patients and families and will connect with our local communities so that they continue to finance our present and our future Celebration We will celebrate the abilities of the people we care for, however limited they may be. When people are bereaved we will support them lo celebrate the lives of people they have lost "St John's Hospice - Built by the people for the people" LEGAL STRUCTURE, GOVERNANCE AND MANAGEMENT The Charity's offi¢ial name is Sl John's Hospice North Lancashire and South Lakes, though il is beller known as Sl John's Hospice. The Charity is a charitable incorporated organisalion governed by a Foundation Model Conslilulion dated l April 2014 Ljnder the terms of which the Trustees operate. Its Charity registration number is 115703Q. The Charity has 3 wholly owned subsidiaries. St John's Hospice Lan¢asler Limited (company number 72164441 was established lo promote the sale of Hospice goods. Sl John's Hospice Shops Limited (¢ompany number 24909561 operates charity shops in the area selling donated goods and fumilure. Sl John's Hospice Catering Limited (company number 109115251 runs the café al the Hospice and provides event catering. Trustees Governan￿ of the Charity is the responsibility of the Board of TrLJslees. Trustees who have served in office from 1 April 2020 until the dale of signing this report are sel out below. Mrs C Heginbolham- Chair Mrs C Redhead Mr M Cullinan- Vice Chair Dr N Sayer- Appointed 9 March 2021 Mrs E Bales Mr J Sharples Mr K Essa- Appointed 9 March 2021 Mrs S Smith Mr R Gaskell Mrs J Spencer Ms F Inglis Mrs F Ward Mrs D Mace Dr J Yarnall- Appointed 9 March 2021 Mr R Meacock Resigned 7 December 2020 ST JOHN'S HOSPICE NORTH LANCASHIRE AND SOUTH LAKES TRUSTEES, ANNUAL REPORT ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2021 In accordance with the Conslilulion, new Trustees are appointed by the existing Trustees and for a term of four years by Board resolution. In selecting new Trustees, the existing Trustees have regard lo the skills, knowledge and experience neeofed for the effective administration of Ihe Charity. On appointment new TTUStees complete an induction prog¥amme Ihal inGludes familiaiisation with the purposes and operations of the Charity, appreciation of current isstjes and guidance on relevant policies. All Trustees are encouraged lo attend seminais and training days as appropriate. The Board ordinarily meets every three months and has two additional slr2tegy meetings per annum lo revie the strategy and operation of the Charity including a rigorous review of the corporate risks affecting the Charity. Three regular sub-committees are in place lo review speGific areas of activ￿y. These comprise Finance and Resources,. Care, Quality and SeNices,' 2nd Fundraising and Communicalwjns. Those sub-commillees each meet every three mollths and report lo the lull Board meetings. A Remuneration sub-commillee meets annually. Trustees are encouiaged lo lake an interest in individL4al areas of Hospice activity. Perftsrman¢e of Trusl&es is subject lo perlodic review by the Chair. Trustees also communicate with each other and the Senior Managemènt Team in the event that consideration of any issuè is required between Board andloT sUb￿mMIttee meelings. The HOSPI￿ is an active participant in the North West Hospices Network Group. During this financial year, the Board agreed to hold additional full Board mfyelings lo address the impact of the Covid-19 pandem￿ on the Hospice's Servi￿8, staff and finances. CHARITY DETAILS Princlpal Office Sl John's Hospice, Slyne Road. Lancaster Bankers Barclays Bank plc, Market Street, Lancaster Audltors MHA Moore and Smalley, Priory Close, Lancaster Investm¢nt Managers Smith & Williamson Limilecl, London Sanlam UK Limited, London OPERATIONAL MANAGEMENT The general operation of Hospice mallers is devolved to the Sènior Management Team which during the year comprised of Mr5 S M¢Graw (Chief Executive Office¢, Dr S Edgecombe (Medical Diréolofj, Mrs M Bass IDireclor of Nuffying and Qualily), Mrs S Morch (Direclorof Finance and Resources), Mrs C Butlerworth (Directorof InGofTI8 General￿nI and Mrs S Horner (Dirértorof Marketing, commUn￿all0￿S & Engagement). Following the retirement ol Mrs S Morch in July 2021 Mrs Tracey Scoll replaced her as Director of Finance and Resouices. The SOn￿)r Management Team reports to the Board of Trustees and allends regular meetings of the Board. Operational risk is managed through the Senior Management Team, with key reference to the Care, Quality and Servsces sub-commillee. The Senior Management Team mettls weekly. ST JOHN'S HOSPICE NORTH LANCASHIRE AND SOUTH LAKES TRUSTEES. ANNUAL REPORT ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2021 Pay for the Senior Management Team is sel by the Tiuslees having regard lo the job scoring matrix used throughout the Hospice lo evaluate pay for all jobs and having regard lo market salary rates. VOLUNTEER SUPPORT AT ST JOHN'S HOSPICE The Charity is heavily dependent on, and very thankful for, the support il receives from volunteers, who work lo support the operation of the Hospice in a wide variety of ways, from helping lo provide direct care, supporting income generation by fundraising or working in the charity shops, serving as Trustees, or in a host of other capacities. Sadly. due lo the pandemi¢ the involvement of volunteers at the Hospice has been severely curtailed as we h8ve limited footfall lo the Hospice lo minimise the risk of spreading Covid-fj9. In addition, with non- essential retail closed for many months we have not needed as much volunteer support in our ¢harily shops either. Compared with 202012021 when we received the support of almost 114.000 volunteer hours, this year il was closer lo 28,000 hours. This would suggest an economic value of some £361k lo the Charity when calculated using the average staff cost of the department in which the volunteer works compared lo £1.34m last year. This is over and above the warmth and spirit of community that the volunteers generate. There are many more informal volunteers who help out with numerous fundraising and publicity events. The value of this support is incalculable bul could easily double the calculated value of the input of the more formal volunteers. OBJECTIVES AND ACTIVITIES INCLUDING PUBLIC BENEFIT The Charities Act 2011 requires ¢harilies to report on the public benefit of their activities. The Trustees have had regard lo the Charity Commission's guidance on publi¢ benefit and believe that an appreciation of the Charity's public benefit can be obtained from the following review of ils achievements and performance. ACHIEVEMENTS AND PERFORMANCE 202012021 During the year we updated the Strategic Plan for 2020-2023. Our Vision & Strategy for 2020-2023 was the result of conversations with our community, health and social care partners and volunteers and staff at the Hospice. 11 was clear from these conversations that Hospice care in our community Is valued, il is also clear that the price of providing increasingly costly services lo more and more people is simply unsustainable in the long-lerm and Ihal the challenges we fa￿ require a courageous response. We believe that a successful future for Sl John's demands a balance be￿￿een stability and agility. Stability comes from the ethos of hospice care- what we are known for and the things wewill not compromise such as excellence, compassion and dignity. However, we musl also have the agility lo respond lo new opportunities in an innovative and progressive way, actively seeking out partnerships, trying out new ideas and being creative and compelling with our fundraising and Communication messages. ST JOHN'S HOSPICE NORTH LANCASHIRE AND SOUTH LAKES TRUSTEES, ANNUAL REPORT ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2021 The Strategic Plan has been updated during a year when we have had lo respond to the Covid-19 pandemic however al the heart of the plan is for the Hospice to continue to provide for the needs of thos¢ fa¢ing life limiting illnesses in the locality. The Vision and Slralegy also identified the following six priorities in support of that mission. Develop and deliver high quality end of lil& ¢are services with the professional competence and unique ethos that make us oulslanding Proactively seek opportunities for collaborative working where appropriate Be an employer and volunteer base of choice Develop innovative, ethical and sustainable levels of resource lo meet the seTvice needs of our community Ensure Sl John's is the charity of Choice for our local community Ensure Sl John's is the end of life charity of choice for providers. This year we have faced unparalleled challenges as we adapted daily lo the challenges of Covid-19. Social distancing reslriclions meant that we had lo limit the number ol patients accessing our inpalienl unil. Many patients who stayed with us presented with complex holistic mulli-fa¢eled issues and with a variety of different medical, emotional and psychological needs and complexities. Whilst we have continued lo allow visitors lo the inpalienl unil we have been required lo limit the number of visitors, It Is not therefore surprising that many of our ptspulalion have SOU9hl to be supported lo die al home. This has meant that our Hospice al Home team and our Clinical Nurse Specialist team have received additional referrals. Sadly, social distancing meant that we had lo close our Day Hospice as il was not safe lo bring vulnerable patients together at the Hospice. Day Hospice staff were redeployed to provide a much needed Respite service lo our Hospice at Home patients. The pandemic has highlighted the need to adapt our way of working and we are looking al how we Iransftsm our digital capability and capacity so we can operate in a more agile way, not only in terms of clinical Gare bul also in the way we raise funds. To support the delivery of the 7 strategic prK>rilies, we are required each year lo produce a Quality Account outlining three key areas for improvement in the coming year. These have been developed in conjunction with feedback from our VOICE group. TheVOICE groLJP is made up of patients, family members and volunteers, all of whom have had recent èxperience of Hospice services. ST JOHN'S HOSPICE NORTH LANCASHIRE AND SOUTH LAKES TRUSTEES, ANNUAL REPORT ICONTINUEDI FOR THE YEAR ENDED 31 NIARCH 2021 The three key priorities foT improvement were". Priority 1- Develop a famlly-centred bereavement seNice ResearGh undertaken in partnership with Lan¢aslèr UnNersily idenlified a gap in the provision of bereavement support lor children and young people with a particulai emphasis on whole family support. We have been gifted a donation specifically to build a dedicated family support ￿ntre on our extsling sile, Work on the building has now been started and we have designated reserves to meet any shortfall. Priority 2- Pilot the FAB (Fatigue, Anxi8ty & Breathle55ne55) programme in Prisons We had secured grant funding to enable the Hospice lo work in partNe￿hIp with HM Prison servi￿ to provide a 'Faligue, Anxiety and Breathlessness, IFABI course for inmates al HMP Lancaster Farms. The Gourse was for people with a diagnosis of COPD or other progresswe lung disease affecting quality of bre8thing. Due to the Covid-19 pandemic, we have had lo postpone any work on this project. Prlorlty 3- Implemant the findings frorn the 2019120 community consultation During July - December 2019 an ¥ngagemenl project took place lo consider how commuiiily based sèrv￿￿$ could work differently lo shape a serviGe that meets increased future demand. The pandemic proved lo be a calalysl for working quite differently in the community and, whilst the findings of the community consullalion will in part influence the way services are slruclured in the future. our learning from the pandemic will also form part of this review. This is an on-going project. FINANCIAL REVIEW When we sel the budget lor the current financial year we were very aware of the dffticullies in trying lo quantify the effect the pandemic would have on Ihe finances ot the ktospice. Whilst wg fully appreciate that the TrL¢sleès' have the ongoing objective of rullning balanced budgets year on year, we racognised that th￿S was a year we would need to draw on our reserves lo fund anticipated shortfalls in income. This meant that we budgeted lo make a delicil of £403,840. When we set the budget, we knew that the National Health Service England INHSEI had awarded some fund1ng lo allow the Hospice to make available bed capacity and community support from April 2020 to July 2020 10 provide stjpport lo people with complex needs in the cont&xt of the COVID-19 situation. This was factored into the budget. NHSE did however continue their support as hospi￿$ nalionally provided bed capacity and community support fiom Novembar 2020 to March 2021 for the same purpose. When we set the budget neither did we anlicipale just how much our eommunily would gel behind u8 nor how much other Central and Local Government funding would be forthcoming. As a result of this unprecedented support we h8ve recorded consolidated nel income of £1,491,121 belore investment gains and £2,130,995 post investment gains. Sel out below is an anatysis of the main sources ol charity income. ST JOHN'S HOSPICE NORTH LANCASHIRE AND SOUTH LAKES TRUSTEES. ANNUAL REPORT ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2021 Olherincome 202012021Sources of Income Incornefromlafé Fu lou8h Monie5 Investmentlncome Contrfburion fromrerail activities and Ebay Le8acies Gift aid ttery Incomo enera 8rènts condwonil nty tthSE bed capaiity fuadb)B NHSCore Fundi NHSSpeiifii projectfundin8 NON NHSprojectfundin8 Consolidated income for the year lolalled £6,904.664 with the local CCG providing £1,138,939 to fund our core work and a further £700.722 to fund specific project inilialives. In addition, NHSE supported us with £1.48m ol bed capacity monies whilst as a group we also received just over £428,000 of furlough monies. Our subsidiary selling second hand 9oods on the High Street also received £113,000 of Local Authority Grants. The remaining £3,044,003 was generated from our loyal supporters, spe¢ifi¢ funding inilialives and our inveslmenls. Consolidated expendilijre for the year lolalled £5,413,543. Expenditure on charitable a¢livilies lolalled £4,189.947 ofwhich 840/0 was spent on staffing ¢osls. The remaining £1,223,596 has been spent on raising funds. Consolidated nel income for the year was £1,491,121 pre investment gains and £2.130,995 post investment gains. Our investment portfolio benefited from the rally in the stock and financial markets around the world with gains of £639,874 of which £137,668 have been realised. Full details of the Charity's financial position and of ils income and expenditure are sel out in the Slalemenls of Financial Activities. Balance Sheets and relaled notes which form part of these financial slatemenls. The conlinue¢J uncertainty around the pandemic and the Government's response lo the easing of lockdown has meant that selling a budget for 202112022 has also been challenging. Funding remains uncertain and this has been reflected in the delicil budget that has been sel of £355,130 for the year which includes £80,000 of ¢ompelling projects but excludes the extraordinary funding for the Forget Me Not Cenlre. The Trustees are commilled lo using reserves lo fund this deficit and the Senior Management Team is working closely with the Board lo generale new funding streams and manage costs in line with anli¢ipaled future revenues. ST JOHN'S HOSPICE NORTH LANCASHIRE AND SOUTH LAKES TRUSTEES. ANNUAL REPORT {CONTINUEDI FOR THE YEAR ENDED 31 MARCH 2021 We ale indebted again to OUT grant funders who have 8UPPOrted us during the financial yeai, many of whom have supported us in the past. All funds r8ceived have be&n spent on the projects they were intended for. For those projects where grant funding has been received in advance bul the costs have not yel been incurred, any grant monies received have been carried fotward lo the coming financial year, During the year ended 31 March 2021 we have received the following grants,. NHSE awarded £1.48m of funding to allow the Hospice to make available bed capacity and cornmunily support from April 2020 lo July 2020 to provide support lo people with complex needs in the context of the COVID-19 situation and lo provide bed capacity and community support from Novembei 2020 10 March 2021 for the same purpose > The Wesl Lancashire Freemastsns, the Yorkshire Building Sociely Foundation and the Cadenl Foundation donated monies towards the cost of a syringe driver > ARCO Limited donated monies towards bedding and linen for the inpalienl unit > Turner Scotl Limited donated monies foT pyjamas and night dressés for our inpatient unlt > Morecambe Men's Commillee funded specialist patient crockery to help patients eat and drink independently > Howard Connor Hearing purchased a Sound Ear 11 noise meter for the inpatient unil > Bow Enterprises Limited donated monies towards the purchase of two Royal Marsden Nursing manuals > The Sir John Fisher Foundation have again kindly funded the cost of a full lime Hospice al Home Nuise for thè South Lakes locaifty > The Lupton Tower Trust have again given funding towards running our Kend81 and South Lakes Hospice at Home and Clinlcal Nurse SP￿lalist service The CuTnbria Community Foundation also donated monies to fund the cost of providing Hospice al Home visits. in the South Lakes. > The Keswick to Barrow Walk Committee provided much needed funds lo cover the salary costs of our nLErsing staff. The Bay Inlegraled Care Community provided funding lo allow us to run progrdmtmes to support carers of indThiiduals with life limiting illnesses The Harold and Alice Bridges Charity donated moniès lo purchase equipment lo support the work of the Hospice's int6mal marketing 2nd communications department > The Medicash Foundation helped with our &xlrx waste and cleaning costs from the pandemic > The Asda Foundation donated monies lo provide toiletries for patients and staff to help with hygiene during the pandemic > Tesco Bags of Help donated rllonies lo help fund the purchase of memory box sets for our patients ST JOHN'S HOSPICE NORTH LANCASHIRE AND SOUTH LAKES TRUSTEES, ANNUAL REPORT ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2021 > Temple Heelis Solicitors have funded the purchase of dementia clocks for our inpalienl unil > Moto in the CDmmunily Trust have donated monies lo support the work of our Day Hospice staff, fund an observation machine, fund memory boxes for our patients and support training of our complementary therapy team. The Hadfield Charitable Trust have helped fund laptops for our clinical staff lo use for patient visits Mr and D Reynolds gave us a grant lo purchase a fruil cage for our Hospi￿ kitchen garden > The Slorth Community Co-operative funded the puichase of an ear irrigator machine > The Lakes Disability Tiusl funded the purchase of a ¢ar for our Clinical Nurse Specialist Team In addition, the Masonic Charitable Foundation. the Brownlie Trust, the Hospital Saturday Fund, Mazars Charitable Trust and the Ecclesiastical Group kindly gave unconditional grants lo support the funding of our charitable activities. RISK MANAGEMENT The Trustees consider and assess on an on-going basis the major risks lo which the Charity may be exposed. All risks identified are sel out and monitored using the Gorporale risk register. Systems are in place lo miligale those risks. Where they are financial il is believed that the reserves policy and financial ¢onlrols minimise the potential risks. In non-financial mallers there are reviews, appraisals and regulatory pro¢edures in place. By far the biggest risk to the Hospice has been the impact of the Covid-19 pandemic. We remain a Covid-19 Secure Organisalion. As a result, a complete risk management strategy was developed and implemented. This strategy comprised.. The eslablishmenl of a Covid-19 Risk Assessment process which has been shared with our colleagues The convening of additional Senior Management Team meetings The escalation of sub-commillee to full Board meetings Taking measures lo reduce the financial impact on the Hospice by furloughing non-essential staff and suspending non-essential services Taking advantage of additional Government funding where available Increasing the review of the Corporate Risk Register Selling up regular staff biielings lo include and support furloughed and non-furloughed staff Supporting staff lo be able lo work al horne by investing in technology -10- ST JOHN'S HOSPICE NORTH LANCASHIRE AND SOUTH LAKES TRUSTEES, ANNUAL REPORT ICONTINUED FOR THE YEAR ENDED 31 MARCH 2021 Eslablishmenl of cleaning, handwashing and hygiene procedures in line with guiLlance Taken steps lo manage the risk of transmission of the virus including ensuring cornpliance with physical distancing measures in the workplace The éslablishmenl of a Covid-19 T8sk Group which meets bi-weekly lo monitor and implement actions r&quired Staff receive appropriate annual mandatory liaining covering health 8nd safely issues such as lire safety, moving and handling. basic food hygiene, safeguarding, information conlidentialily and infection control. This has now been supplemented with a module on Coronawrus ICovid-191 staff support loolkil. Along with all charitable organisalions, the Hospice has a number of regulators. the principal two being the Charity Commission and the Care Quality Commission ICQG). The Hospice complies with all Charity Commission requirements. The Care Quality Commission regularly inspects the operations of the Hospice. either through self- assessment or visits and their last routine unannounced inspection visit was on 26 July 2016 when the Hospice was rated overall as"Oulslanding° The overview given by the insp6clors was as follows.. 'We spoke with people who us8d th8 $6ftvice, relat￿es, staff and other professk)nals during this inspection. They lokl us the strwice provided an exemplary level of Ca￿ and the leadership was exceptional. They spoke exlremely of staff. One person lold us, From being in despair l am now able lo focus on what mallers. All wNth the help from th8 Staff.. A relalw& said. 'The support from the hosp￿0 staff exceeded anything we had hoped for. 11 w8s fantaslio., Careplanning was exlremelyflexffble. petson centrod andproactive. Pgople &nd th8irfami1￿s lold us staff championed people's right lo choose how, wher8 &nd when they wanted their care provided. They said staff were especiallyproaclwe and 'made things happen, order lo provide exCept￿nal care forpeople. We saw staff h8d to support people lo allend special family eveiils with sléff support and helped patients with 8rrdngemenls lo marry in the hospw. People said staff were ext￿melY caring andrespecmul, listened lo them and assisted them promptly. They lold us slaff always 'wenl Ihal exlra mile and beyond,. We saw end of life care plans were inlormatwe and pap3onalis@d 8nd staff war8 r8msrksble in their determination lo help people lo cary oul Ihoir final wishes. This included providing advice, support 8nd staff al 8 person's home so Ihey could remain in the comfort of Iheir home with loved ones. Families told us staff were extremely con7pelenl and compassionate in Ihe way they assisted people lo have control of illness symptoms andpain. They Gommended61ctff forlhe praGlical, effloliunal and spirilual supportprovidgd and ouÈslendirFg care Ihal enabled Ih&ir relativ8 lo have 8 dignified, p&8ceful 8nd pain free death. Wrillen comments from families included, 'Thank you formaking Éhe end of[family membeffs] life so calm an6 dignified and filled with love,. And 'You worked miracle)s and [personJ d￿d s&ron&ly and comfortably. Thank you.. The mgnag&m8nt18gm and Irustses worked co112boralively with olher agenC￿S lo develop beslpractKe. excellent partne￿hIp work and support ror people. They ¢&med out innovative research with local end nalional organisalions and influenced besl practice and policy-m8king. This further improved carè pracliG&s and hulp¥d devslop innovalive support Ihe hospice and the communily. The man898ment l&am set up numen)us forums 8nd support gfrvups rfo seek people's views, p￿vIde support 8nd infomiation and ensure peopl8 Trc&ived pe￿On centred flexible c8re that fully mel theffr n&eds. Ono comment we saw slated. 'Nolhing n&8ds changing thé car8 is SUP8rb.' Anolherp8rson had written, 'Your wonderful, warm personalities cre&le such a lovely friendly almospher8. You afft amazing -11- ST JOHN'S HOSPICE NORTH LANCASHIRE AND SOUTH LAKES TRUSTEES, ANNUAL REPORT ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2021 and do a fantastic job.. The managemenl team used multiple ways of monitoring &nd &udiling care and S88king the vigws of people who used the seThice, their families. other professionals and staff. This assisl8d staff to provide care thal was personalised and exceptionally flexible. Olh@rprofessionals were extremely complimentary about Sl John's Hospice. th8 staff alliludes and their compelenG8. Staff demonslraled 8 highly sensitive and compassionate understanding of prolgcting and respecting people's human rights. We found slaff were passionate about providing a non-discriminatory and tremendously supportive SeTh￿e. P8opl& who us8d th& sewice, Iheir families and staff were supported throughout their joumey,. They were provided with complementary ther￿p￿S such as flexology ai?d massage to assist with relaxalion and reduce anxiety and distress. The care by hospice slaff did not end when a person died.. the hospiGe team continued lo support families aller Iheir fanpily memberfs death. They were offered bereavement counselling and support groups for emotional well- being. Recruilmenl and selection was ca￿le￿ out safely with approprFale checks m&de before new staff were appoinlgd. There were enough staff lo provide safe. personalised and timely Gare. Th8 provid8r had an extremely posiÉive and constructive response lo complaints and carried oul Ihgir dufy of candour with an open and transpar&nl approach. People told us they knew how lo ￿lse a concem or complaint and staff encouraged them to express any ideas orconcorns. The regislerecl managerhad systems to monilorand anage aGcid8nts and incid8nts lo m8inlain everyone's safely. One person confNNned, '1 feel safe and supported here and not worried." Full dotsils of the Charity Commission Report and Care Quality Commission's inspection can be found on the respective organisation's web-site. 11 should be noted that our next inspection 11 be as a provider of independent healthcare which will use different key lines of enquiry lo those used in the 2016 inspection. I￿lIst the last full inspection was in 2016, we have regular update and review meetings with our CQC Relationship Manager. the lalesl review meeting look pla¢e on the 24th February 2021 and the CQC confirmed there are no areas of risk or concern al the Hospice. The Hospice lakes the role of clinical governance very seriously and monitors all areas lo ensure clinical effectiveness,. patient safety and patient experien￿ are at the forefront of care. Our corporate and clinical governance structures ensure that we have both the systems and processes in place lo maintain a viable and responsible operation, whilst ensuring that OLJr services are of the highest quality and meet the aspirations of our vision. The Inlegraled Goveinance ComrMitte&, which ¢omprises all members of the Senior Manaoemenl Team. oversees the development. implemenlalion and monitoring oflhe Hospice's integrated governance arrangements. In addition il looks at the systems and processes by which the Hospice leads, directs and controls ils functions in -12- ST JOHN'S HOSPICE NORTH LANCASHIRE AND SOUTH LAKES TRUSTEES. ANNUAL REPORT ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2021 orderto aGhieve Strat￿1¢ organisalional Dbjeclives. assure safety and optimise quality of service. The Committee also seeks lo ensure that all slalulory responsibilities of the Hospi¢8 are covered appropriately and all Iequiremenls of our various regulators are met. The Committee ieports directly ID the relevant Board sub- ¢ommille6S. The annual Data Security & Protection Twlkil was completed in line with the NHS'S extended deadline of the 1 Él June 2021. Serious Incidents There are no seTiOUS incidents to report. FUNDRAISING With onty approximat61y one third of ourfunding being received from our local CCG, fyndraising is an integral part of the work we do al the HDBpice to ensure that our services can continue lo be prDvided free Of charge. We are grateful for the support of the very many people and organisations within our community who iaise funds on our bohalf. WÈ take our resKx)nslbilllles lowafds fundraising very seriously and are committed to ensuring that tho standards we adopt for fundraising mirror our vision and values treating everyone with care and compassion. The Direcloi of Income Generation and the Director of Marketing and Communicaliorbs ale responsible for devising and delivering the annual Income Generation, Communications and Engagement strategy. Income Generation fundraising activities cover. Individual giving Community and Gorporale fundraising Fundraising events organised by the Hospi¢e Sourcing of grants Legacy fundraising Operation of a lottery Selling second hand goods through our charity shops OperatSng a café wllhin the Hospi¢e. The Trustees are ultimately responsibl& for our fundraising aclivily and so review and approve the slralegy and bLEdgel each year. The DirecloT of Income Generation reports to the Board of Trustees through the quarterly Fundraising and Communications sub£ommittee and al the full Board meetings on performance and any ielevanl issues. A5 well as fundraisers who are ellher employed by. or volunteer for, the Hospice we currently have arrangements with the following commercial participatorslprofessional fundraisers.. ST JOHN'S HOSPICE NORTH LANCASHIRE AND SOUTH LAKES TRUSTEES, ANNUAL REPORT ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2021 Organi5atio Type Nature of relationship How we oversee and monitor their work Furness Building Society Commercial participator Charity Affinity accounl Conlra¢l in place. Regular monitoring and reviews. Inlegraled Promotions Professional fundraiser Provision of canvassing serviGes Contr8¢1 in pl8¢e. LIGen￿d and regulaled by the Gambling Commission. Bound by thè Code of Pracllce of the FLfndraising Regulator. Regular training and updates for canvassers. Regular commuv¥ication, feedback and meetings. Quality monitoring. Complaints procedure in silu. Skyline Commercial participator Provider of Overseas treks Contract in place. Regular communication, feedback and meetings. ATOL Protection 10069. Global Adventure Challenges Commercial participator Provider of Overseas Ireks Contract in place. Regular communication, feedback and meetings. ATOL PToleclion 6506. To ensure Ihal we proleel the publlc. including vulnerable people. from unreasonably Intrusive or persislenl fundraising approaches, and undue pressure to donate.. > We are registered with the Fundraising RegulaloT and committed lo adhering to all recognised standards in relation to our fundraisin9 activity > Staff ensure that all fundraising activity complies with the Fundraising Regulator's Code of Fundraising Practice and the Fundraising Promise > staff are trained in their responsibilities in relation lo fundraising regulation and legislation upon induction and periodically thereafter as required. Volunteers are also trained in compliance where neGossary for their role > In line with GDPR and the Fundraising Preference Service we prompuy action any requests for removal from our mailing lists by amending thèir contact preferences. -14- ST JOHN'S HOSPICE NORTH LANCASHIRE AND SOUTH LAKES TRUSTEES, ANNUAL REPORT ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2021 > We do not sell or pass on the data of any of our donors and supporters lo any third parties under any circumstances > We comply with all the fundraising requirements of the General Data Protection Regulation > We only use professional fundraising agencies who can demonslrale a track record of best practice in the se¢lor and Complian￿ with the Fundraising Regulator's Code of conduct. In addition we have a Risk Management Policy so as lo minimise or. as far as il reasonably practicable, eliminate any risks lo palittnts, staff, volunteers, supporters, members of the public or Ihe organisalion's repLJ121ion in relation lo our fundraising aclivily. Staff identify and assess risks and pul any necessary prevenlalive controls in place. During the 2020-2021 financial year we received 2 minor operaliDnal complaints about our fundraising and retail aclivily. All concerns have been salisfaolorily addressed through the risk management procedures of the Hospice. rtQSiiiL v> PLANS FOR THE FUTURE The pandemic has not stopped the Board ofTruslees making plans forthe Hospice's future. In the past 12 months. Trustees have conducted a skills gap analysis of the Board and recruited new Trustees with relevant skills and knowledge that will support our strategic aims. Our three strategic projects for the current year are.. The Development of the Forget Me Not Centre As mentioned previously, thanks to a significant donation from a major donor, in De¢ember 2021 w& are planning lo open our new family and children bereavement centre in the last month of our 35th anniversary year. Research conducted with Lancaster University will underpin the structure of the service which seeks lo support whole families pre and post bereavement. ST JOHN'S HOSPICE NORTH LANCASHIRE AND SOUTH LAKES TRUSTEES, ANNUAL REPORT ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2021 )'qi," yé,1 li Dlgltal Transformation During 202012021. the seNices of a Digital Consultant were employed lo develop a strategy and work plan for the Hospice. Again, Covid-19 has proved lo play a significant role in affecting the pa¢e of this work. 11 is fair lo say that, in the past year, our digital Iransformalion journey has progressed at speed bul Ihare is still more to do. Digital transformation remains a strategic priority in the year ahead. One Hospice- Bringing our team back togethèr post-Covid-19 The past year has seen our close-knil team forced to work separately in "bubbles" due lo Covid reslTi¢lions. The Board are keen for the SMT lo bling teams back together quickly and effectively once final restrictions are lifted. We are hopeful that this work can begin in early July when the Trustees and senior management host an afternoon lea of thanks for the whole team. Beyond this dale, a series of health and well-being inilialives are planned such as a day of Health checks and health MOTS, a focus on team ¢onlinuous professional development and a Christmas °Ihank you" event. FINANCIAL REVIEW Rèserves policy At 31 March 2021 the Hospi¢e's resetves wmprise: _ Total funds £12,893,013 Of which: -16- ST JOHN'S HOSPICE NORTH LANCASHIRE AND SOUTH LAKES TRUSTEES, ANNUAL REPORT ICONTINUED) FOR THE YEAR ENDED 31 MARCH 2021 Tangible fixed assets £4,499.878 Funds lo meet donation shortfall lor building a dedicated family-centred bereavement ¢entre £256,100 Unallocated free reserves £8,137,035 The Hospice could not do what il does wilhoul ils dedicalad team of around 200 skilled and professional staff. The Hospicè seeks to employ managers and staff that have both the necessary skills and experience and the right values and attitudes lo provide ils very special service and il is their employment ¢osts that make up the vast majority of the Hospice's running costs. This year with so much uncertainly the Trustees have remained very mindful ot the need to mainlain sufficient reserves lo meet the woiklng capit81 needs of the ChaTity, fund unexpected expenditure and shortfalls in income and lo allow appropriate and monitored service expansion. Furthermore lo ensure the financial security of the Charity rto new service developmenis ar@ introduced unless the Trustees are Gonfidenl that they are both affordable and sustainable. In addition we always considerthe revènue Consequences of any capital expenLlitUTe. The TTitslees monitor the level of res&rves each quarter through the Finance and Resources s¢Jb-comMillee and continuously review its reserves policy. Al a Board meeting on S June 2018 il was agreed that the Trustees adopt a policy of retaining unallocaled free resetves lo cover up to one yeaff s full operaling costs. Based on the Budget ftir 202112022 this amounts lo £5m. Unallocaled free reserves at 31 Mar¢h 2021 amounted to £8.137,035 whi¢h represents 19 months full opeialing costs. Investment pollcy The investment policy of the Charity Is to ring fence monies held in respect of grants received in advance or required for known Capital and major repair expenditure. Addition81 funds are invested in equities. gills, fixed interest and property funds with the intention of covering future inflation in running costs. The Charity has a policy lo maintain reserves foT the purposes given above. The reserves are lo be invested for the long term in portfolios and linancial instruments which the Trustees deem lo represent an acceptable level of risk combined with the aim of providing a reasonable return on the funds. Investment crit6ri8,' Capital preservation of adequate reserves for known and unforeseen shorter term needs BaLance of resetves invest&d with the potential of gTowlh above inflalion over the longer term Avoidance of tobacco related inveslmenls. An investment committee meets quarterly as part of the Financ8 and Resources sU￿)￿mittee lo review the Charity's inveslmenls. The invèslmenl policy and performance of funds against the policy is reviewed al each meeting with investment managers instructed to carry DUI any recommended changes as to the investment instruments. The managers -17- ST JOHN'S HOSPICE NORTH LANCASHIRE AND SOUTH LAKES TRUSTEES. ANNUAL REPORT ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2021 8re instructed lo keep a balanced portfolio lo spread the risk and maximise Gap￿81 growth wilhoul jeopardising revenue income. The Trustees are satisf￿d with the performance of th8 inv6slmenl portfolio over the period. TRUSTEES. RESPONSIBILITIES Trustè•s' responsibilities in relatlon to the flnancial statements The Trustees are responsible for preparing the Trustees, Annual Report and ihe linancial statements in accordance with applicable law and United Kingdom Accounting Standards {Uniled Kingdom Generally A¢¢epled Accounting Praclice)- The law applicable to charities in England & Wales requires the Trustees tts prepare financial statements foi each financial yearwhich give a true and fair vièw of the slate of affairs of the Charity, and ofthe income and expenditure of tho Charity, for that period. In pieparing these financial slalemenls, the T¥uslees are required lo.. select suitable accounting policies and then apply them consislenlly.. observe the methods and principles in the Charities SORP IFRS102}', make judgements and eslimales that are reasonable and prudent., slate whether applicable acGounting standards have been ltsllowed, subject lo any material departures diSGIDsed and explained in the financial slalements., prepare the financlal slalements on the going concern basis unless (t is inappropriale to presume that the Charity will continue in operation. The Tiuslees are responsible for keeping proper a￿OuntIng records that disclose with reasonable accuracy al any limè the financial position of the Charity and enable them lo ensure that the financial stslements Comply with the Charity's governing document, the Chartlie8 Act 2011, the Statement of Recornmend6d Practice., Accounting and Reporting by Charities preparing the accounts in accordan￿ with the Financial Reporting Standard applicable in the UK and Republic ol Ireland IFRS 1021, the Financial Reporting Slandaid applicable in the United Kingdom and Republic of Ireland IFRS1021 and UK Generally Accepted Accounting Practice, AUDITORS MHA Moore and Smalley have indicated their willlngness lo accept ieappoinlment as auditors lo the Charity. The Trustees Report was approved on 7 Seplember 2021 and was signed on behalf of the Trustees by=_ C Hegin tha Chair- Board of Trustses -18- ST JOHN'S HOSPICE NORTH LANCASHIRE AND SOUTH LAKES INDEPENDENT AUDITORS REPORT TO THE TRUSTEES OF ST JOHN'S HOSPICE NORTH LANCASHIRE AND SOUTH LAKES FOR THE YEAR ENDED 31 MARCH 2021 Opinio We have audited the financial slalemenls of St John's Hospice North Lancashire and South Lakes Ilhe 'paienl Charity'l and ils subsidiaries Ilhe'group'l for Ihe year ended 31 Mar¢h 2021 which comprise the consolidated and charity slalemenl ol linan¢ial a¢tivilies, the consolidated and Charity balance sheets, the consolidated and charity ¢ash flow slalemenls and the notes lo the financial slalemenls, including a summary of significant accounting policies. The financial reporting framework that has been applied in IheiT preparation is appli¢able law and United Kingdom Accounting Standards. including Finaii¢ial Reporting Standard 102 The Finanttial R6POrtino Slanclard applicable in the UK and Republic of Ireland Iuniled Kingdom Generally Accepted Accounting Praclicol. This report is made solely lo the Charity's Trustees, as a body, In a¢cord8ncewilh Part 4 oflhe Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we Inighl slate lo the Charit￿S Trustees those mallers we are required lo slat8 lo them in an auditor's report and for no other purp05e. To the fullest exlenl permilled by law, we do not accept or assume responsibility lo anyone other than the charity and the Charily's Trustees as a body, for our audit work. for this report, or for the opinions we have formed. In our opinion the financial stslemenls.. give a true and fair view of the slate of the group'$ and parent Charity's aflairs as at 31 March 2021, and of the grtsup's incoming resources and application of resource8 for the year then ended.. have been propèrly prepared in accordance with United Kingdom Generally Accepted A￿OUntIng Practice,. and have been prepared in accordan￿ with the requirements of th@ Charities Act 2011. Basls for opinion We conducted our audit in accordan¢e with International Standards on Auditing IUKI {ISAs IUKII and applicable law. Our responsibilities under those standards are further de5Gribed in the Auditorfs responsibilities for the audFt of the finanGial slalements section of our report. We ale independent of the group and parent Charity in accordance with the ethical requirements that are relevar)I lo our audit of the financi81 slalemènls in the UK, including the FRC'S Ethical Standard, and w& have fulfilled our other elhical responsibilities in aGGordan¢e with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide basis for our opinion. Conclusions relating to going concern In atjdiling the financial stalemenls, w& have concluded that the trustees. use of the going COn￿rTr basis of accounting in the preparation of the financial slalemenls is appropriate. Based on the work we havè perfom)ed. we have not identified any material urEcertainties relating to ￿antS or conditions that, individually or collectively, may cast significant doubl on the charity's ability lo continue as a going concern for a period of at least ￿e1ve months from wlien the finanGial slalemenls are aulhorised for issue. Our responsibilitiés and the responsibilFties of the Iruslees Wlth ie8pecl lo going concern are descrlbed In the relevant sections of this report. ST JOHN'S HOSPICE NORTH LANCASHIRE AND SOUTH LAKES INDEPENDENT AUDITORS REPORT TO THE TRUSTEES OF ST JOHN'S HOSPICE NORTH LANCASHIRE AND SOUTH LAKES (CONTINUED FOR THE YEAR ENDED 31 MARCH 202 other information The other information ¢ompris&s the information included in the trustees annual report. other than the finan¢ial statements and our audilor'E report Ihereon. The Iruslees are responsible for the other inform8tion contained within the annual report. Our opinion on the financial slztemenls does not cover the other information and, ex￿pt ID the exlenl otherwise explicitly slated in our report, we do not express any form of assurance conelusion thereon. Our responsibility is lo read the other Informatio￿ and, in doing so. consider whether the other information is materially inconsislenl with th@ financial slalements or our knowledge obtained in the course of th¢ audil or olhepNise appear5 to be materially misstated. 11 we identify such material inconsistencies or app8renl material misslalemenls, we are required to determine whether this gives rise lo a material misslalement in the financial slalemenls themselves. If, based on the work we havtr performed, we conclude that there is a material misslalemenl of this othèr information, we are required to report thal fact. We have nothing lo rewrt in this regard. Matters on whlch we are rèquirèd to report by exceptlon We have nDlhing to report in respect of the following matters in relation lo which the Charities (Accounts and Reports) Regulations 2008 require us lo report to you if. in our opinion.. the information given in the financial slalemenls is inconsistent in any material respect wth the Trustees. report., or suffi¢ienl accounting records have not been kept.. or the parent Charity's financial statements are not in agreement with the accounting records., or we have not received all the Information 8nd explanations we require foT our audit. Rèsponslbllitles of Trustaes As explained more fully in the Trusle8s' responsibilities statement, sel OL6t on page 18. the Trustees are responsible for the prepaTation of financial slalemenls which give a true and fair view. and for such internal control as the Trustees determine is necessary lo enable the pieparation of financial slalemenls that aTe free from material misslalemenl, whether due to fraud or error. In preparing the fi'nanGial stalem¥nls, the Trustees are responsible for assessing the group's and parent Charity's ability to continue as a going concern, disclosing, as appI￿able. mallers related lo going concern and using the going con￿rn basis of accountin9 unless the Trustees either intend tts liquidate the group or the parent Charity or to cease operations, or have no realistic allernalive bul to do so. Auditor's responslblllties lor the audit of the financlal statements We have been appointed as auditor under section 144 of the Charities 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 financial statements as a whole are free from material misgt81emenl. whether due lo fraud or eiror, and lo issve 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 a¢cordan¢e with ISAS IUKI will always detect a material misslalement when il exisls. Misslalemenls can arise from fraud or error and ale considered material if, indwidually or in the aggregate, they could reasonably be expected lo influence the economic decisions of users taken on the basis of these financial stslemenls. -20- ST JOHN'S HOSPICE NORTH LANCASHIRE AND SOUTH LAKES INDEPENDENT AUDITORS REPORT TO THE TRUSTEES OF ST JOHN'S HOSPICE NORTH LANCASHIRE AND SOUTH LAKES ICONTINUEDI FOR THE YEAR ENDED 31 WIRCH 2021 Irregularities, including fraud, are inslantes of non-compliance with laws and regulations. We design procedures in line with our responsibilities. outlined above, lo dete¢l malerial misslalemenls in respect of irregularities, including fraud. The exlenl to which our procedures are capable of delecling irregularilios. InGluding fraud is detailed below.. Enqviries with the board about any known or suspected instances of non-compliance with laws and regLJlalions, including fraud., Challenging assumptions and judgements made by the board in Ih8ir significant accounting estimates, in particular in relation lo piovisions and future perfo¥mance ol the company in light of the impact of Covid- 19., An evaluation of the risk of managemenl ovèrride of controls and subsequent testing, including through testing journal entries and other adjuslmenls for appropriateness., 2nd An evaluation of the charity's inlemal control environment. Because of the industry in which the charily operates, we identified the following areas as those most likely lo have a material impact on the financial slalemenls.. Compliance wtth the Care Quality Commission requirements, Health and Safety, compliance with Gambling Commission ¥ul@s, in particular holding the relevant lottery licen￿., employment law, and compltance with the UK Charities Act. BeGause of the inherent limilaliDns of an audit. there is a risk that we will not delecl all irregularities, including those leading lo a material misslalement in the financial slalemenls or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial slalemenls, as we will be less likely lo become aware of instances of non-¢OMpliance. The risk is also greater regarding irregularities occurring due lo fTaud rather than e¥ror, as fraud involves intentional con¢ealmenl, forgery. collusion, omission or misrepresenlaliork. As part of an audit in accordance with ISAS IUKI, we &xercise professional judgment and maintain professional sceplicism IhToughoul the audit. We also.. Identify and asstsss th& risks of material misst8lsm@nl of the financial stalemenls, whether due to fraLFd or error, design and perform audit procedures iesponsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. Thè risk of not detecting a malerral misslatemenl resulting from fraud is higher than for one resulting from error, as fraud m2y involve collusion, forgery, inténtional omissions, misrepre5enlalions. or the override of internal control. Obtain an understanding of internal control relevant lo the audit in order lo design audit procedures that are appropriate in the circumstances, bul not forthe purpose of expressing an opiniDn on the effectiveness of the group's internal control. Evaluate the appropriateness of accounting wlicies used and the reasonablgness of accounting estimates and related disclosures made by the Trustees. Conclude on the appropriateness of the Trustees, use of the going concem basis of accounting and, based on the audTt eviden¢& obtained, whether a material uncertainly exists related to events or conditions that may cast significant doubl on the group's or Charity's ability to continue as a going ¢oncern. If we conclude that a material uncertainty exists, we are required to draw atlenlion in our auditorfs report lo the related disclosures in the financial statements or, if such disclosures are inadequal8, lo modify our opinion. Our conclusions are based on the audit evidence obtained up to the dale of our auditor's report. However, future events or conditions may cause the group or parent Charity lo cease to continue as a going concern. -21- ST JOHN'S HOSPICE NORTH LANCASHIRE AND SOUTH LAKES INDEPENDENT AUDITORS REPORT TO THE TRUSTEES OF ST JOHN'S HOSPICE NORTH LANCASHIRE AND SOUTH LAKES ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2021 Evaluate the ovefall presenlalion, structure and ¢onlenl ol the financial slalemenls, in¢luding the disclosures, and whether the financial statem6nls represent the underfying transactions and events in a manner that achieves fair presenlalion. Obtain sufficient appropiiale audit eviden¢e regarding the financial information of the entities or business a¢livilies within the group lo express an opinion on the consolidated financial slalements. We ale responsible for the direction, supervision and performan¢è of the group audit. We rem8in solely responsible for our audit opinion. We communicate with those charged with governance regarding, among other mallers, the planned scope and liming of the audit and significant audit findings, including any significant deficiencies in intern81 Control that we identify during our audit. MHA Moore and Small8y Chartered Accountants and Statutory Auditor Priory Clos& Sl Mary's G818 Lancaster LA1 IXB 0711012021 MHA Moote Smalley is el￿Abl5 lo acl as an 2udiÈorin terffls of seclioft t212 of Ihe Companies Act 2006. -22- ST JOHN'S HOSPICE NORTH LANCASHIRE AND SOUTH LAKES CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2021 Unrèstrlctèd R&strlctèd Total funds funds fund5 2021 Total fvinds 2020 Income from. Donations and legacies cha￿table acti￿LieS Other Iradinu aeliiAties In￿stmentS Other 1,423,2S4 1,960,929 1,230,952 88,104 559,204 1,423,254 1,960.929 1,392,085 88,104 2.040,292 1,534,267 1,835,053 2,360,027 113,432 183,095 161,133 1,481,088 Total 5,262.443 1,642,221 6,904,664 6,025,874 Expenditur9 Qn.. Charitable act1￿lIeS Raising tunds 2.547.726 1,223.596 1.642,221 4,189.947 1,223.596 4,264,463 1,506,881 10 Totsl 3,771,322 1,642,221 5,413.543 5.771,344 Nèt Incom8 b8forè oth8r r8cognis•d galns 1,491.121 ,491,121 254.530 other recognisod gains Gains on disposal ol in￿StmentS Gain51llossesl on revaluation of in¥pslments 137.668 502,206 137.668 502,206 33.583 1255.1281 Net movement in fundy 2.130,995 2,130,995 32,985 Reconciliation of fvnds: Total fvJnd5 brought foTwar 10.707,772 10.707,772 10,674.787 Totsl funds carried forward 26 12.838.767 12,838,767 10,707,772 All income and expenditure derive from continuing a¢tivilies. All gains and losses recognised in each period are included above. Thè notes on page 2810 48 form p8rt of these financi81 statements. -23- ST JOHN'S HOSPICE NORTH LANCASHIRE AND SOUTH LAKES CHARITY STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2021 Unrèstrlcted Rèstrictèd Total funds funds fund5 2021 Total fvnds 2020 Income from: Donations and legacies Charitable a¢t1Mties Qlher trading a¢liMlies In￿StmentS Other 1,423,254 1,960,929 1.139.816 88.054 283.044 1,423,254 1,960,929 1,300,949 88,054 1,764,132 1,534.267 1,835,053 1,526,315 113,280 110,951 161,133 1,481.088 Total 4,895,097 1,642,221 6,537,318 5.119.866 Expenditure on: Charilable acti￿lieS Raising fvnds 2,544.459 581.758 1.642,221 4186,680 581,758 4,260,727 729,462 Total 3,126,217 1,642,221 4.768,438 4.990,189 Net income before other recognised gains 1,768,880 4,768.880 129,677 other recognis&d gains Gains on disposal of In￿StmentS Gainslllossesl on revaluation of in*slmenls 137.668 502,206 137,668 $02.206 33,583 1255,1281 Net movement in funds 2,408,754 2,408,754 (91,8S81 R8eonclliation of fund Total tjnds brought forward 10,484,259 10,484,259 10,576,127 Totsl funds Carrlod forward 26 12,893,013 12,893,013 10,484,259 All income and expenditure derive from continuing activities. All gains and10sses recognised each peTiod are included above. The notes on page 2810 48 form part of these financial statements. .24- ST JOHN'S HOSPICE NORTH LANCASHIRE AND SOUTH LAKES CONSOLIDATED BALANCE SHEET AS AT 31 MARCH 2021 2021 2020 Flxed awts Tangible assets Intangible assels Inkeslmenls 15 16 17 4,501,578 4.424,891 4,096,242 3,337,356 8,597.820 7.762.247 Current assets Slwk Debtors Cash al bank and in hand Cash held thilh In￿StMent managers 8,159 608,495 3,787,181 134,838 8,628 706,718 2,765,145 184,764 18 4.538,673 3,665.255 Creditors.. amounts faEling due within one year 19 1297,7261 (719,7301 Net current assets 4,240.947 2,945,525 Total assets le￿ current liabillties 12,838,767 1Q,707,772 Netassets 12,838,767 10,707,772 Fund& Reslricled funds Unrestri¢led ￿ndS 26 12,838,767 10,707,772 Total funds 12,838,767 to,707,772 These accounls were approved by the Trustees and aulhorssed for issue on 7 September 2021 2nd are signed on their behalf by.. C H¢gln oth Chalr- Board of Trust8aS M Cullinan Chairman- Finance and Resources Committee The notes on page 28 to 48 form part of thesè financial slalemenls. -25- ST JOHN'S HOSPICE NORTH LANCASHIRE AND SOUTH LAKES CHARITY BALANCE SHEET AS AT 31 MARCH 2021 2021 2020 Flxèd assets Tangible assets In￿StMentS 15 17 4,499,878 4,166,245 4,418.407 3.407.359 8,666,123 7,825.766 Current assets Stock Debtors Cash al bank and in hand Cash heid with in*slfnenl managers 650 752,012 3,631,146 134,838 1,017 973,295 2,226,164 184.764 18 4,518,646 3,385,240 Creditors: amounts falling due wthin one year 19 1291,7561 1726,7471 Net current assets 4,226,890 2,658,493 Total a￿ts less current liabilities 11893,013 10,484,259 Net a&8ets 12,893.013 10,484,259 Fund*. Restricted funds Unrestricted funds 26 12.893,013 10.484,259 Totsl fund 12,893,013 10,484,259 These ac¢ounls were approved by the Trustees and aulhorised for issue on 7 September 2021 and are signed on their behalf by.. C Hoginb hatn Chalr- Board of Trustees M Cullinan Chairman- Finance and Resources Commltteo The notes on page 28 10 48 fotm patt of these financial slalemenls. -26- ST JOHN'S HOSPICE NORTH LANCASHIRE AND SOUTH LAKES GROUP AND CHARITY CASH FLOW STATEMENT AS AT 31 MARCH 2021 Group 2021 Group 202QI Charity 2021 Charity 2020 Cash generated in operating activities 1.167,648 140,042 1,550,644 73,901 Cashtlows from inv8sting activitiès In￿Stment income Purchase of tangible fixed assets (including inveslmenls) Receipts from sale of In￿stmentS 88,104 113.432 88,054 113,280 14,501.428) 1604,Q82} 11,501,4281 1604,0821 1,217,786 404,894 1,217,786 404,894 Cash provided byllused inl investlng activitie5 972.110 54,286 1,355,056 112.0071 IncreasellDecreasel in cash and cash equivalents in the yèar 972,110 54,286 1,355,056 (12.007) Cash and cash eqUi￿rentS bl 2,949,909 2,895,623 2.410.928 2.422,935 Cash and cash 8qulvalènts clfwd 3.922,019 2,949,909 3,765,984 2,410,928 Reconciliation of net movement in funds to net ca51iflow from operating activiti95 Nel M0￿ment in funds In￿Stment income recei￿￿ Depreciation and amDrtisalion IlnGrBasellDeGrease in stock Ilncrease)IDe¢Tease in debtors Inc¥easellDecreasel in creditors Increas￿(DecreaSel in dÈfèrred income 1,491.121 254,53D 188,q041 1113,4321 87,943 77,921 469 1,077 98,223 1536,423) 39,1541 56.778 1382.8501 399,591 1,768,880 129,677 188.0541 1113,2801 83,159 70,333 367 574 221,283 1490,7891 152,1411 77,795 1382.8501 399,591 Net cash generated In operating a¢tivitles 1,167,648 140,042 I.SSO,644 73,901 Components of cash and cash equivalents Cash al bank and in hand Cash held wlh 1nltstm￿rt managers 3,787,181 134,838 2.765,145 184,764 3,631.146 134,838 2,226,164 184,764 3,922,019 2,949,909 3,76S,984 2,410,928 The notes on page 28 to 48 form part of these financi81 slalements. -27- ST JOHN'S HOSPICE NORTH LANCASHIRE AND SOUTH LAKES NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021 Accounting policies Basis of accounting Sl John's Hospice North Lancashire and South Lakes is a charitable Incorporated organisalion ICIOI registered in the United Kingdom. The address of the CIO, the nature of ils operations and ils principal activities are all detailed in the Trustees, report of these financial statements, The CIO conslilules a public benefit entity as defined by FRS102. The financial slalemenls have been prepared in 8ccord8nce with the St21ement of Recommended Practice.. Accounting and Reporting by Charities preparing their a¢¢oiJnts in a¢¢ordan¢e the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 and the Financi81 R@porting Standard applicable in the United Kingdom and Republic of Ireland IFRS 1021 and the Charities Act 2011 and UK Gènerally Accepted Practice. The financial ytstemenls have been prepared on a going concern basis under the historical cost convention. The financial slalemenls are prepared in sterling which is the functional Currency of the Charily. The financial statements have been prepared to give a 'true and fail, view and have departed from the Chartlies {A¢counls and Reports) Regulations 2008 only lo the extent required lo provide a 'lrue and fair, view. This departure has involved following AccoLJnting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standards applicable in the UK and Republic of Ireland IFRS1021 issued on 16 July 2014 ralhei than the Accounting and Reporting by Charities.. Stalemenl of Recommended Practice effective from 1 April 2005 which has since been withdrawn. The signifiGant accounting policies applied in the preparation of these financial slalements are sel out below. These policies have been consistently applied lo all years presented unless Dlherwise slated, Basis of consolidation The consolidated accounts ofthe group incorporate the accounts of Sl John's Hospice North Lancashire and South Lakès I IhÈ Charity") and ils three wholly owned subsidiary undertakings, Sl John's Hospice Shops Limited. Sl John's Hospice Lancaster Limited and Sl John's Hospice Catering Limited. The results of these subsidiaries are consolidated on a line by line basis. In¢ome Income including donations and gifts receivable is Credited to the Statemenl of Financial Activlties in the period in which il 18 re￿ivable. Legacies are ￿garded as receivable once probate has been granlecl, there is sufficient evrdence rtsgarding the certainly of the re¢eipl and there is a sufficiently reliable measurement of the amount in accordance with the recognition criteri8 ol the SORP. In practice this is rarely before the receipt of a leller advising of an intended payment or transfer. Interim receipts a￿ Irealed as being receivable on receipt. Where legacies have been notified to the Charity, or the Charity is aware of granting of probate and the criteria for income recognition have not been met, then the legacy is Irealed as a contingent as5el and disclosed if materkql in note 3. Funding recelved in advance Including grants are treated as deferred income where the funding agency requires an ongoing seNtce to be provided by expènditure in the future period lo which th8 funding relates. Other income includes income from NHS England and other support from the UK govemmenl including Ltnder the Coronavirus Job Retention Scheme ICJRSI to support the charity following the impact of COVID-19. -28- ST JOHN'S HOSPICE NORTH LANCASHIRE AND SOUTH LAKES NOTES TO THE ACCOUNTS ICONTINUED} FOR THE YEAR ENDED 31 MARCH 2021 Accounting policies Icontinuedl Expenditure Expenditure is re¢ouni$8d on an accruals basis and has been classified under headings that aggregate all costs related lo the Galegory. Expenditure is rewgnised where there is a legal or constructive obligation lo make payments to third parties. il is probable that the sèlllement will be required and the amount of the obligation can be measured reliably. Expenditure is calegorised undei the following headings.. Expenditure on the provision of Hospi￿ s#rvices and associated service costs Expenditure on raising funds Irrecoverable VAT is cha¥ged as an expense against the activity for which expendbture arose. Donated services and facilities Donalod services and facilities are recognised as income when the Charity has ¢ontrol over the item, any conditions associated with the donaled item have bean met, the receipt of economic benefit is probable and that economic benefit can be reliably measured. In aGcordan¢e with SORP IFRS 1021 no amounts are included in the financial statements for ServI￿S donated by volunteers. On receipt, donated professional services and donated facilities are iecognised on the basis ol the value of the gift lo the Charity whiGh is the amount the Charity would have been willing to pay lo obtain services or facilities of equivalent economic benefit on the open market., a corresponcling amount is then recognised in expenclilure on peiiod of receipt. Flxed assets Fixed assets are slated at Cost less depreciation. Potential capital items with a cost of less than £2,000 or items Ihal are deemed to have no value once in use by the Hospice are expensed through the Slalemenl of Financial Activities. Fixed assets are depreclated on a slraighl line basis over thei¥ anticipated useful Iwes. Freehold land and buildings Motor vehicles Fixtures and equipment 1Yo per annum 25% per annum 20Q/o per annum Freehold land and b(tildings inclLJdes non-depreclable land. the cost of which is not consiijered material. Intangible assets Amortisation is calculated so as lo write off the cost of an asset, less ils eslimated residual value, over the useful economic life of that asset as follows.. Goodwill in subsidiary 5 years slraighl line Investments Investments are shown al their markel value on the date of the balance sheet. Gains and losses on disposal and revalltalion of assets ar& ¢harued or credited to the Statemenl of Financial Aclivilies. Investments in substdiaries are held al cost less amounts wrbtton off. -29- ST JOHN'S HOSPICE NORTH LANCASHIRE AND SOUTH LAKES NOTES TO THE ACCOUNTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021 AcGouriting policies (continued) stock Stocks consist of shop rtems pur¢hased for resale and are stated at IhB lower of Cost nel realisable value. The Charity adopts a ¢osl formula of FIFO. Debtors and creditors within one yèar Debtors and ¢r6dilors with no slated inlerésl rale and receivable and payable within onè yèar aro recordeLf at Iran8action price. Any losses arising from impai¥menl are recogntsed in exp8ndrture. Pensions The Hospice operates a defined contribution SGheme. Contributions are Gharged in the Statement of Financial A¢bvilies as they become payable in accordance with the rules of the scheme. Certain eligible employees are members of the National Health Service Superannuation Scheme. Contributions lo this are also charged in the Slaloment of Financial Activities as they bocomo payable (see notè 231. Fund accounting Unr6slri¢led funds general funds are available for use al the discretion of tha Trustees in fuTtheran¢e of the general objectives of the Charity. RestT7cled funds - reslricled funds arise where there is a donor imposed reslriclion on the use of the fvnds, or the funds have arisen in response lo an appeal for a specific PUTP05e. Designated funds- designated funds are unreslricled funds sel aside by the Trustaes for particular purposes. Transfers are made from Reslricled to Unrestricted funds where the expenditure has been fully made in accor(lance with the objects of the fund. Cash and cash equivalents Cash balances comprise amounts held on deposit with recognised bank5 and building societies. Operating leases Rentals applicable lo operating leases are charged lo the Statement of Financial Activities over the period in which the co31 is incurred. Taxatlon Th6 Charity is exempl within the meaning of schedule 3 of the Charities Act 2011 and is considèred lo pass the lesls sel out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charily for UK corporation lax purposes. -30- ST JOHN'S HOSPICE NORTH LANCASHIRE AND SOUTH LAKES NOTES TO THE ACCOUNTS ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2021 Accounting policies Icontinuedl Going concern Prior lo the approval of Ihtrse a¢¢ounls there ha5 been a reduction in the measures taken within society lo mbal the Covid-19 panden)i¢. However, the Hospice still continues lo adhere to Public Health Guidance in relation lo Covid-19 measures and is reducing measures more slowly. The Trustees believe that no material uncertainties exist and have prepared the financial slalemenls on a going concern basis. The Trustees have Considered the level of funds held and the expected level of income and expenditure for 19 months from aulhorising these financial slalemenls. The budgeted income and expenditure is sufficient with the level of reserves for the Charity to be able lo continue as a going COn￿rn. Financial instruments The Charity has elected lo apply the provisions of Section 11 'Basic Financi81 Instruments. and Section 12 'Olher Financial Instruments Issues, of FRS 102 to all of ils financial instruments. Financial inslrumenls are recognised in the Charity's balance sheet when Ihe Charity becomes party lo contractual provisions of the inslrumenl. Financial assets and liabilities are offset, with the nel amounts presented in the financial slatemenls, when there is a legally enforceable right lo offset the recognised amounts and there is an inlenlion to settle on a nel basis or lo realise the asset and sellle the liability simullaneoLJsIy. Basic financial assgls Basic financial assets, which include debtors and cash and bank balances, are initially measLJred al transaction pri￿ including transaction costs and are subsequently carried al amortised ¢ost using the effective interest method unless the arrangement ¢onslilules a financing Iransa¢lion, where the transaction is measured al the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised. Impainnenl of financial assels Financial assets are assessed for indicators of impairment al each reporting end dale. Financial assets are impaired where there is objective evidence that, as a result of one or more events Ihal owurfed afterthe initial recognition of the financial asset, the eslimaled future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted al the asset's original effective interest rate. The impairment loss is recognised in the slalemenl of comprehensive income. If there is a decrease in the impairment loss arising from an event o¢¢urring after the impairment was recognised, the impairment is reversed, The reversal is such that the Current carrying amount does not exceed what the carrying amount would have been, had the impairment not previous￿ been recognised. The impairment reversal is recognised in the statement of comprehensive income. De-￿cognItIon of financial assels Financial assets are de-recognised only when the ¢onlraclual rights lo the cash flows from the asset expire or are settled, or when the Charity transfers the financi81 asset and subslanlially all the risks and rewards of ownership lo another entity, or if some significant risks alld rewards of ownership are retained bul control of the asset has transferred lo another party that is able lo sell the asset in ils entirely to an unrelated third party. -31- ST JOHN'S HOSPICE NORTH LANCASHIRE AND SOUTH LAKES NOTES TO THE ACCOUNTS ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2021 Ac¢ountlng pollcies Icontinuedl Classif￿all0n of financial liabililies Financial liabilities and equity instruments are classified according lo the subslarnce of the contractual arrangements entered into. An equity instrument is any corklract that evidences a ￿sIdUal interest in the assets of the Charity after deducting all of its liabilities. BasK financial liabilit￿$ Basic financial liabilities. including creditors, are initially recognised at transaction price unless the arr8ng@n)enl constitutes a financing transaction, where the debt instrument is measured al the present value of the future receipts discounted at a market ral& of inl&re$l. Financial liabilities classified as payable within one year are not amortised. Debt instruments are subsequently carried al amortised cost, using the effective interest rale method. Trade creditors are obligations lo pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities il payment is due within one year or less. If not, they are presented as non-currenl liabilities. Trade credilors ale Tecogllised initially al transaction price and subsequently measured al amortised cost using the efleclive interest method. De-recognilion of finanGi81 liabilities Financial liabilities are de-recognised when Ihe Charity's contractual obligations expire or are discharyed or cancelled. Judgements and key sources of estlmatlon uncertalnty In the application of the Charity's accounting policies, the Trustees are required to make judgements, estimates and assumptions about the Carrying amuunl of assets and liabilities that are not readily apparent from othèr sources. The estimatès and associated assumptions are based on historical 6xperience and other factors thal are considered lo be relevant. Actual results may differ from these eslimales. The eslirnales and underlying assumptions are reviewed on an ongoing basis. Revisions lo accounting 8stimales are recognised in the period in which the estimate is revised where the revision affects onw that period, or in the period of the revision and ftjlijre periods where the revision affe¢ts both current and future perrods. Key assumptions, judgèments and estimates In the opinion of the Trustees, there have been no significant judgements (apart from those involving eslimatesl made in the process of applying the above accounting policies. There have been no key assumptions Concerning future and other key SOLErces of estimation uncertainty al the reporting date that havÈ 8 significant risk of causing a material adjustment lo the carrying amounts of assets and liabilities within the next financial year. The Chaftty's key estimates are considered lo be depre¢ialion charges which are explained in the fixed asset policy on page 29. -32- ST JOHN'S HOSPICE NORTH LANCASHIRE AND SOUTH LAKES NOTES ro THE ACCOUNTS ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2021 Income from donations and legacies Unrestricted Restricted funds funds Total 2021 Total 2020 General donations Glft aid Urcondilional grants Legacies 678,164 122,252 13,965 610.873 676.164 122,252 13,965 610,873 455,565 152,402 84,262 842,038 1,423,254 1,423,254 1,534,267 Certain gifts are received with a request Ihal the money be spent on specific items of equipment OT for specifi¢ revenue purposes. The amounts so received are included in income and the cost of the related expenditure in the relevant category of expendilure. 11 is the Trustees, policy lo spend all such gifts for the purpose requested. Al the period end, the Trustees had been notified of legacies approximating £553.60D which do not meet the criteria for inclusion in these financial slalemenls under SORP IFRS 1021 which is further explained in the aGGounting policies on page 28. All income from donations and legacies in the comparalnie period was unrestricted. Income from ¢harlt8ble a¢tlvitl6s Unrestrictèd RestrScted fund5 funds Total 2021 Total 2020 NHS core ￿ndIng NHS specific projects Non-NHS InGome 1,138,939 7CX),722 121,268 1.138.939 700,722 121.268 1.201,063 580,591 53,399 1.960.929 1.960.929 1.835.053 Income from charitable activities is spent in accordance with the terms of the agreement or contract nder whiGh it is received. All income from charitable activities in th& comparative pèriod was unrestricted. -3 ST JOHN'S HOSPICE NORTH LANCASHIRE AND SOUTH LAKES NOTES TO THEACCOUNTS (CONTINUED FOR THE YEAR ENDED 31 MARCH 2021 Income from other trading activities Unrestrlcted Reslrlcted funds funds Total 2021 Total 2020 Fundraising e￿nIS Conditional grants Lottery in¢ome Retail acli¥ities Café income 451,719 451,719 161,133 420,528 358,696 618,860 109,701 359,869 1,086,321 185,276 161,133 420,528 358,696 1.230,952 161,133 1,392,085 2,360,027 Conditional grant income of £109.701 in the compaTative period represented restricted income. All other income was unrestricted. Income from investments Unrestricted RestriGted funds funds Totsl 2021 Total 2020 Bank and In￿StMent interest receivable Interest on G0￿mMent secvrilies and dilidends receI￿d 5,521 5,521 15,597 82,583 82,583 97,835 88,10d 88,104 113,432 All income from inveslmenls in (he comparative period was unrestricted. Other income Unrestrieted Restrlcted funds funds Totsl 2021 Tol 2020 NHSE fvjnding CJRS income Retail grants Other irKome 1,481.088 1,481,088 428.875 113,180 17.149 428,875 113,180 17.149 170.WO 13,095 559,204 1,481,088 2,040.292 183,095 All other income in the Comparative period was unreslricled. -34- ST JOHN'S HOSPICE NORTH LANCASHIRE AND SOUTH LAKES NOTES TO THE ACCOUNTS ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2021 Income from 5ub5idiaries' trading actlvltle5 2021 2020 St John'5 H05pice Shops Llmited (Company No. 024909561 Turnover Cost of sales 247,834 744.246 1445.0081 1476,65ei Gross proflt 1197,1741 267,588 Adminislratlon costs other ope¥aling income 1173.1621 1238,5831 265,290 177,805 Operatlng profit 1105,0461 206,810 Interest receiwble 50 152 Profit before charitable donation 1104,9961 206.962 478,156 549,169 1170.0571 1333,0391 Liabilities Shar9 capital and T989rves 8,099 216,130 St John's Hospice Lan¢#stor Llmltod (Company No. 072164441 Turnover Cost of sales 22,880 18,8631 64.880 (28,6991 Gross profit 14,01Y 36, 181 Admini$lrali()n eosls 11,069) 11.2991 Operatlng proffit 12,948 34,882 Profit before charitable donation 12,948 34.882 Assets Llabllltios 14049 {1.qOOI 35.983 11,1001 Share capital and re*rves 12,949 34.883 -35- ST JOHN'S HOSPICE NORTH LANCASHIRE AND SOUTH LAKES NOTES TO THE ACCOUNTS ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2021 Income from subsidiariès tradlng activitièg Icontinuedl 2021 2020 StJohn's Hospice Shops Caterlng (Company No. 109115251 Turnover Cost of sales 183,154 118,0201 1137.0301 Gross profit 118.011 46, 124 Adminislralion costs Other operating income 12,983) 10,870 15.744) 2,122 Operating profit 110,1241 42,502 Prof4t before charitable donation 110,1241 42,5L12 Assets Llabilities 4,593 179,646 19,884} 1137,143) Share capltal and reserves 15,2911 42,503 The Tesums presented above represent the resuRs for the wholly owned subsidiaries for the year to 31 March 2021. -36- ST JOHN'S HOSPICE NORTH LANCASHIRE AND SOUTH LAKES NOTES TO THE ACCOUNTS {CONTINUEDI FOR THE YEAR ENDED 31 MARCH 2021 Expenditure on charitable activitie5 PrOVi￿On of Hospice SeNi¢es Total 2021 Total 2020 Activity Staffing c051s Non salary costs of employment Medical supplies, ￿uipMent and seTri¢es costs Food and nutrition Transport Premises Depreciation 3,472,548 3.472.548 3,555,867 44,747 44.747 41,935 155,229 155,229 140,912 f8,588 18,588 75,336 11,310 11,310 23,5C11 123,199 123.199 114,165 83,159 83,159 70,333 74,019 74,019 75.1 C12 92,640 92,640 59,717 94,003 94,003 64,862 11.988 11,988 33.682 8,517 8,517 9,051 Managemenl and professional costs Admin and support costs Eduealion costs Audit fees 4,189,947 4,189,947 4,264.463 Of the above expenditure £1,642,22112020'. £109,701) is made against restricted income funds. All other expenditure was unreslricled. 10 Expondituro on ralslng funds Total 2021 Total 2020 staffing CDSIS Fundraising costs Lollery costs In￿Stment manager costs Shop purcha5E5 Transport Premises Depreciation 787.481 79,887 61,718 13,152 8.863 25,592 15,202 4,784 2S,526 125.995 13,117 9.725 52,554 830,082 19D,575 91,838 14.389 28.699 12.780 18.198 4,785 45.832 160.683 13,752 21.334 73.934 Ront Professional cost8 Admin and support Other costs 1,223,596 1,506,881 All expendilure on raisin9 funds was unTeslricled in the current and prior year. 47- ST JOHN'S HOSPICE NORTH LANCASHIRE AND SOUTH LAKES NOTES TO THEACCOUNTS ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2021 11 Net lincomellexp6nditure 2021 202Q Net income Is ststed after chargingllcrediting}= Depreciation Auditols remunerallon audit of the financial stètements 87.943 75,118 8,517 9,051 12 Analysis of staff costs and the cost of key management personnel Total staff costs ware as follows.. Totsl 2021 Total 2020 Wages and salaries Socid security costs Pension costs Bought in sepAces 3.626.918 289.014 345,807 17101 3.683,260 289.137 364,819 48.733 4.260,029 4,385,949 Bought in s&rvices are in respect of staff employed by the NHS Tru81 and other agencies whose services are commissioned via contracts and service level agreements. The disciplines covered are locum doctors, relief cooks, cleaners, and accounts staff. Included within wages and salaries is £9,282122020'. £nill of redundancy Severan￿ paymenls. Excluding the costs of staff recharged, the remuneration of employees who received employee benefits rrK)re than £6D,000 is as follows.. 2021 No 2Q20 £60,000 - £70,000 £80,000 . £90,000 £9O,O(bO - £100.000 The total amount of employee benefits reGeived by key marsagement personnel. as deleimined by the Charity, is £99,773 (2020: £94,929) during the current period. -38- ST JOHN'S HOSPICE NORTH LANCASHIRE AND SOUTH LAKES NOTES TO THE ACCOUNTS ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2021 12 Analysis of staff cosis and the cost of key management personnel (continued) Partlculars of employees: The average number of permanent employees paid directly by the Hospice during the yeaT, calculalecl on the basis of full-lime equwalenls, was as fDIIows'. 2021 No 2020 No Do¢lors Nurse practitioners and nurse management Inpatient unil Hospice al home Day hospice Family support and Spirit￿al Complimentary Iherapisls Clinical nurse specialists Quality and de￿lopmen1 Education AdministraliiK and HR Domestic arid m8lnlenance Finance Catering and ward hospitality Mart(eting and communication Fundraising Physiolherapy and occupational therapy Volunteers Lottery 31 18 32 16 29 126 140 Total head couTrl staff numbers for the year wa5 16012020.. 1891. The number of employees does not include the considerable number of unpaid voluntary helpers to whom the Trustees are indebted nor those who are employed by third parties and to which the Charity conlribules. -39- ST JOHN'S HOSPICE NORTH LANCASHIRE AND SOUTH LAKES NOTES TO THE ACCOUNTS ICONTINUEDI FOR THE YEAR ENDED 31 NIARCH 2021 12 Analysis of staff costs and the cost of key manag8ment personnel Icontinuedl Totsl staff ¢osls are analysed further as follows.. Totsl 2021 Total 2020 Doctors Nurse practitioners and nurse management Inpatient unil Hospice al home Day hospice Family support and sp1rit￿ Complimentary Iheiapisls Clinical nurse specialists Quality and da￿lopment Education Admlni8lr8tI￿ and HR Domestlc and mainlenan¢6 Finance Catering and ward tr￿pitalIty Marketing and CDmmunicalion Fundraising Physiolherapy and ￿CUpatIOnal therapy Voluntèèrs Lollery 286,809 143,952 1,125,397 541.542 26,844 81.816 18,916 251.180 87,582 75.369 261,562 125.371 115.136 146.157 95.0SS 757,818 44,941 44.919 29.663 290,393 136,894 1,036.048 493,765 86.331 81,205 22,861 232,412 124,779 114,777 263.307 133,869 116,897 194.829 70,161 801,507 104,289 53,050 28,575 4,260,029 4,385,949 13 Trustee remuneration and relatèd party transactions No remuneration is paid lo any Trustees in their capacity as Trustees. No travel and related expenses were reimbursed lo any Trustees during the period. Insuranc6 Costs included £3,01812020: £2,516) insurance premium paid for Trustees and Officer Insurance. No trustee ol other person related lo the Charity had any personal interest in any contract of transaction entered into by the Charity during the period. No material donations were mad8 by Trustees lo the Charity. There wa5 no ultimate controlling party dufing the current Dr prior peri1￿. 40- ST JOHN'S HOSPICE NORTH LANCASHIRE AND SOUTH LAKES NOTES TO THE ACCOUNTS ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2021 14 Taxation Sl John's Hospice North Lancashire and South Lakes is & registered charity. number 1157030. All the Charity's income is applied lo ils charitable objectives and the Charity Is therefore exempt under Currenl legislation from most forms of laxalion. Value added tax on expenditure that cannot be recovered is included in the cost of the expenditure on which il is charged. 15 Tangible fixed assets Group Land and Assets under Buildings Construction Motor Fixtures & Vehicles Equipment Totals Cost Al 1 April 2020 Additions Disposals 5.543,384 98.763 18.305 780,057 40,577 63,125 6,422,204 164,630 63,125 105,748 At 31 March 2021 5,543,384 105,748 117,068 757,509 6,523,709 Dèprèclation Al 1 April 2020 Charge for the year Eliminated on disposals 1,150,435 56,491 88,557 13,408 758,321 18,044 63,125 1,997,313 87,943 63, fj25 At 31 March 2021 1.206,926 101,965 713,240 2,022,131 Net book value At 31 March 2021 4,336.458 105,748 15,103 44,269 4,501,578 Al 1 A￿11 2020 4,392,949 10,206 21,736 4,424.891 Charity Land and Assets under Buildings Construction Motor Flxturès & Vehicles Equipment Tota15 Cost Al 1 April 2020 Additions Disposals 5,543,384 64,213 18,305 754,894 40,577 63,125 6,362,491 164,630 63,125 105,748 At 31 March 2021 5,543,384 105,748 82,518 732.346 6.463.996 Dèpreclatlon At 1 April 2020 Charge for the year Eliminated on disposals At 31 March 2021 1,150,435 56,491 59,147 9,298 734,502 17,372 63,125 1,944,084 83,159 63,125 1.206.926 68,443 688.749 1.964.118 Net book value At 31 March 2021 4.336,458 105,748 14,075 43,597 4,499.878 Al 1 Ap￿1 2020 4,392,949 5,066 20.392 4,418,407 41- ST JOHN'S HOSPICE NORTH LANCASHIRE AND SOUTH LAKES NOTES TO THE ACCOUNTS {CONTINUEDI FOR THE YEAR ENDED 31 MARCH 2021 16 Intangiblè fixod ass8ts Group Goodwill Cost At 1 April 2020 Di8r)osals 28,021 28,021 At 31 lJJarch 2021 Amortisalion Al 1 April 2020 Diswsals 28,021 28,021 At 31 March 2021 Net book value At 31 March 2021 Al 1 Apttl 2020 17 Fixed asset investments Group 2021 2020 Valuation Balance brought fotward Acquisitions al cost Receipts for sale of In￿lMentS Realised gains oli sale of in￿StMentS Unrealised gainslllossesl on In￿lmentS 3,33Y,356 3,564,844 1.336,798 398,951 {1.217,7861 1404,8941 137,668 33,583 502,206 1255,1281 Total investments 4.096,242 3.337,356 Total inKe$lments eomptise the frllowing type of In￿StMentS.. UK listed equities and fixed interest securities O*rseas listed equities and fixed interest securities COIF property ftjnd and other property in*slmenls 2.097,465 1,410,212 588,565 1,831,492 1.128,932 376,932 4,096,242 3.337,356 -42- ST JOHN'S HOSPICE NORTH LANCASHIRE AND SOUTH LAKES NOTES TO THE ACCOUNTS ICONTINUEDI FOR THE YEAR ENDED 31 iVJARCH 2021 17 Flxed assèt Investments {¢ontlnued} Charity 2021 2020 Invethjent in SUb￿diary undèrtaklngs 2 shares in Sl John's Hospice Shops ￿Mited 1 share in St John's Hospice Lancaster Limited 1 Sha￿ In St John's Hospice Catering Limited 70,001 70,001 70,003 70,003 Other investments at Valuatlon Balance brought forward Aequisitions at cost Receipts for Sale of In￿stMentS Realised gains on sale of inEslments Unrealised gainslllosses} on investments 3,337,356 1,336,798 11.217,7861 137,668 502,206 3.564,844 398,951 1404,8941 33,583 255,128 4,096,242 3.337.356 Totsl invastmants 4.166,245 3,407,359 Total in%EStments comprise Ihe follo￿￿9 type of in￿stMentS.. UK listed equities and fixed inlerest securities O¥Erseas listed équities and fixed interest securities COIF property and other p¥operty in¥estmenls In￿stMentS in subsidiary undertakings 2,097,465 1,410.212 588,565 70,003 1,831,492 1,128,932 376,932 70.003 4,166.245 3,407.359 Sl John's Hospice Shops Limlled, Sl John's Hosplce Lanc8sler Limited and Sl John's Hospice Catering Limited are all wholly owned subsidiaries of the Charity. The principal activities of th& former two Companies are the operation of retail charity shops selling donated and new goods respectively, with the laller being the oporalion of a café and event Catering. All exist to further the activities of Sl John's Hospice North Lancashire and South Lakes. 18 Debtors Group 2021 2020 Management debt Prepayments Taxation reco￿[￿ble VAT recfftrable 496,S74 38,492 33,956 39,473 452.548 189.724 35.355 29,091 608,495 706,718 -43- ST JOHN'S HOSPICE NORTH LANCASHIRE AND SOUTH LAKES NOTES TO THE ACCOUNTS ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2021 18 Debtors Icontinuedl Charity 2021 2020 Management debtors Prepayments Taxation reCo￿rable Amounts due from subsidiary undertakings VAT rec￿Erable 496.574 13.347 33,956 170,915 37.220 452.206 14.985 35,355 451,302 19,447 752,012 973,295 19 Creditors: amounts falllng due wlthin one year Group 2021 2020 Management C￿ditorS Taxallon and social securlty Accruals Lottery members other creditors Defe¥ied income (note 20} 18.868 87.636 54,368 37,321 20,047 79,486 37,661 77.657 34.878 42,821 64,377 462,336 297,726 719,730 Charity 2021 2020 Management cieditors Taxation and social security Acctuals Amounts due to subsidiary undertaking8 Lottery members Other ereditDrs Deferred income Iwle 201 18,868 87,636 44,339 4,059 37.321 20.047 79.486 37,661 72,022 23,548 26,900 42,821 61,459 462,336 291.756 726,747 -44- ST JOHN'S HOSPICE NORTH LANCASHIRE AND SOUTH LAKES NOTES TO THE ACCOUNTS ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2021 20 Def8rred Income 202 2020 Balance brought forwafd E*nt and course fees reCeI￿d in advance Grants reCeI￿d in ad￿nce Relesse of defetred income 462,336 29,980 29,300 1442,130 62,745 34,052 410,503 144,964} 79,486 462,336 21 Commitments under operating leases 2021 Land and Bulldlngs 2021 Other 2020 Land and Buildings 2020 Other Within l year Within 2 to 5 years After more than 5 yèars 94,438 93,625 11,334 18,959 100,750 188.063 11.334 30.293 188,063 30,293 288,813 41,627 22 Capltal commitments There were no capital commitment8 al the balance sheet date. 23 Pension schemes Tho HospKe operates two pension SGhemes-. al A defined contribution group personal pension Scheme. Contributions lo the scheme are Charged in the Slalement of Financial Activities when payable. bl For certain eligible employees a defined benefit pension scheme. The assets of the scheme are held separalew by the National Health Setvice Superannuation Schem8. Contributions are charged in the Slalemenl of Financia1 Activities as they become payable. Thls pension scheme does not have a real pension fund bLs1. as a slalulory scheme, benefits aTe fully guaranteed by the Govèrnment. Contributions from both members and employers are paid lo the Exchequer which meets the Cost of increasing benelils each year by the rale of inllalion. This extra cost is not mel by contributions from scheme members and employers. As a result of the nalure of the pension scheme there are no separately identifiable assets and liabilities which can be identified as relating to Sl John's Hospi￿, therefore as permitted by FRS 102, the scheme has been accounted for as a defined ¢onlribuliDn s¢heme. -45- ST JOHN'S HOSPICE NORTH LANCASHIRE AND SOUTH LAKES NOTES TO THE ACCOUNTS ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2021 Analysis of restricted funds.. current year At1 April 2020 At31 March 2021 Income Expenditure Transfers Restricted funds Fundraising grants NHSE funding 161,133 1161,1331 1,481.088 11,481,088) Total funds 1,642,221 11.642,2211 The NHSE awarded funding lo allow the hospice to make available bed ¢apa¢ily and community support from April 2020 to July 2020 to provide support lo people with complex need5 in the context of the COVID-19 situation and lo provide bed ¢apa¢ily and community support from November 2020 10 March 2021 for the same purpose. 25 Analysis of restricted funds: prior year At1 April 2019 At31 March 2020 Income Expenditure Transfer6 Rèstricted funds Fundraising grants 109,701 {109,7011 Total funds 109,701 1109,7011 46- ST JOHN'S HOSPICE NORTH LANCASHIRE AND SOUTH LAKES NOTES TO THE ACCOUNTS (CONTINUED FOR THE YEAR ENDED 31 MARCH 2021 26 Analysls of net assets between funds . current year Group Tangible & intanglble Fixed asset Net currènt Long tomi fixèd assets investm8nts a￿ts liabilities Total Unrestricted funds Designated fijnds Generdl fvnds 256.1( 3,g84,847 256,100 12,582.667 4,501.578 4,og6.242 Total funds 4,501,578 4,096,242 4,240,947 12,838,767 Charity TangÉble Fixed ossot Ngt current Long term fixed a550ts investrnents assets Total Unrestricted funds Designated funds General funds 256,10L7 3,970,790 256,100 12,636,913 4.499,878 4,166,245 Total funds 4,499,878 4,166,245 4,226,890 12,893,013 Designated funds consist of amounts sel aside by the Tmstees lo undèrtaké specific projects within the nexL 12 months designed lo meet a donation shortfall for building a dedicated family-centred bereavement Genlre. 47- ST JOHN'S HOSPICE NORTH LANCASHIRE AND SOUTH LAKES NOTES TO THE ACCOUNTS {CONTINUEDI FOR THE YEAR ENDED 31 MARCH 2021 27 Analysis of net assets between funds.. prior year Group Tangibl8 & intangible FixÈd assÈt N&t currènt Long tsrm fixed assets investments a55ets Totsl Unrestricted fvnds Designated fvnds General fiAr￿S 264,199 2.681.326 264,199 10,443,573 4,424,891 3.337,356 Total funds 4,424,891 3,337,356 2,945,525 10.707,772 Charity Tangible Fixed asset Net current Long lerm fixed assets investsnents assets Total Unrestricted funds Designated fvnds General funds 264.199 2,394,294 264,199 10.220,060 4,418,407 3,407,359 Total funds 4,418,407 3.407,359 2,658.493 10.484,259 -48-