## **Trustees’ Report and Financial Statements For the year ended 31 March 2023**
**St John’s Hospice North Lancashire and South Lakes is a charitable incorporated organisation registered in England with charity number 1157030**
**ST JOHN’S HOSPICE NORTH LANCASHIRE AND SOUTH LAKES**
## **TRUSTEES’ ANNUAL REPORT AND ACCOUNTS**
## **FOR THE YEAR ENDED 31 MARCH 2023**
|**CONTENTS**||
|---|---|
||**Page**|
|Trustees’ Annual Report|2|
|Independent Auditors Report to the Trustees|19|
|Consolidated Statement of Financial Activities|23|
|Charity Statement of Financial Activities|24|
|Consolidated Balance Sheet|25|
|Charity Balance Sheet|26|
|Group and Charity Cash Flow Statements|27|
|Notes to the accounts|28|
**ST JOHN’S HOSPICE NORTH LANCASHIRE AND SOUTH LAKES**
## **TRUSTEES’ ANNUAL REPORT (CONTINUED)**
## **FOR THE YEAR ENDED 31 MARCH 2023**
## **BACKGROUND TO THE CHARITY**
St John’s Hospice North Lancashire and South Lakes (“the Charity”) was founded on 1 April 2014 as a charitable incorporated organisation (“CIO”) and registered with the Charity Commission on 13 May 2014 with Charity Number 1157030. The CIO was formed to take over the assets and undertakings of North Lancashire and Lakeland Continuing Care Trust, an unincorporated charity with charity number 510667 that was founded in 1980 to establish a hospice for residents of North 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 to those of the unincorporated charity, which was removed from the Register of Charities. The Charity is known as St John’s Hospice (“the Hospice”).
The principal object of St John’s Hospice, which opened its doors to patients in December 1985, is the relief and care of persons of either sex (without regard to race or creed) who are suffering from any chronic or terminal illness or from any disability or disease. These aims are achieved by inpatient care, outpatient clinics, day hospice, domiciliary care and associated educational initiatives.
The running costs of the Hospice are met by discretionary grants from the Integrated Care Board (ICB) and by funds raised by the Charity supported by the remarkable generosity of the local community.
The Hospice places great value on its connections with a number of public sector and voluntary organisations that cooperate with it and at times provide joint services.
## **Our Vision**
Putting local patients and families at the heart of everything we do will ensure that on the journey towards the end of life, we provide the right care, in the right place, at the right time.
## **Our Mission**
Ensuring our services are clearly understood and accessible to those in need where and when required.
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**ST JOHN’S HOSPICE NORTH LANCASHIRE AND SOUTH LAKES**
## **TRUSTEES’ ANNUAL REPORT (CONTINUED)**
## **FOR THE YEAR ENDED 31 MARCH 2023**
## **Our Values**
**Care** – We will provide first class care, delivered by competent, committed people who put the patient at the heart of all we do
**Compassion** – We will treat everyone with respect, dignity and empathy
**Collaboration** – We will work with others to ensure that patients and families receive the best end of life care possible
**Charity** – We will provide care free of charge to 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 to 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 official name is St John’s Hospice North Lancashire and South Lakes, though it is better known as St John's Hospice. The Charity is a charitable incorporated organisation governed by a Foundation Model Constitution dated 1 April 2014 under the terms of which the Trustees operate. Its charity registration number is 1157030. The Charity has 3 wholly owned subsidiaries. St John’s Hospice Lancaster Limited (company number 7216444) was established to promote the sale of Hospice goods. St John’s Hospice Shops Limited (company number 2490956) operates charity shops in the area selling donated goods and furniture. St John’s Hospice Catering Limited (company number 10911525) runs the café at the Hospice and provides event catering.
## **Trustees**
Governance of the Charity is the responsibility of the Board of Trustees. Trustees who have served in office from 1 April 2022 until the date of signing this report are set out below.
|Mrs C Heginbotham - Chair|Mrs C Redhead|
|---|---|
|Mr M Cullinan - Vice Chair (up until 7thJune 2022)|Dr N Sayer|
|Mrs E Bales|Mr J Sharples|
|Mr K Essa|Mrs S Smith (Vice-Chair from 7thJune 2022)|
|Mr R Gaskell|Mrs F Ward|
|Ms F Inglis|Dr J Yarnall|
|Ms A Bargh (Appointed 7 June 2022)||
In accordance with the Constitution, 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 to the skills, knowledge
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**ST JOHN’S HOSPICE NORTH LANCASHIRE AND SOUTH LAKES**
## **TRUSTEES’ ANNUAL REPORT (CONTINUED)**
## **FOR THE YEAR ENDED 31 MARCH 2023**
and experience needed for the effective administration of the Charity. On appointment new Trustees complete an induction programme that includes familiarisation with the purposes and operations of the Charity, appreciation of current issues and guidance on relevant policies.
The Board ordinarily meets every three months and has two additional strategy meetings per annum to review 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 to review specific areas of activity. These comprise Finance and Resources; Care, Quality and Services; and Fundraising and Communications. These sub-committees each meet every three months and report to the full Board meetings. A Remuneration sub-committee meets at least annually. Trustees are encouraged to take an interest in individual areas of Hospice activity. Performance of Trustees is subject to periodic review by the Chair. Trustees also communicate with each other and the Senior Management Team in the event that consideration of any issue is required between Board and/or sub-committee meetings. The Hospice is an active participant in the North West Hospices Network Group and the newly formed Lancashire & South Cumbria Hospice Alliance, of which the CEO is the current Chair.
## **CHARITY DETAILS**
|**Principal Office**|St John's Hospice, Slyne Road, Lancaster|
|---|---|
|**Bankers**|Barclays Bank plc, Market Street, Lancaster|
|**Auditors**|MHA Moore and Smalley, Priory Close, Lancaster|
|**Investment Managers**|Evelyn Partners, London|
||Atomos Investments Limited, London|
## **OPERATIONAL MANAGEMENT**
The general operation of Hospice matters is devolved to the Senior Management Team which during the year comprised of Ms S McGraw ( _Chief Executive Officer_ ), Dr S Edgecombe ( _Medical Director – part year_ ), Dr A Bacon ( _Medical Director – part year_ ), Mrs M Bass ( _Director of Nursing and Quality_ ), Mrs T Scott ( _Director of Finance and Resources_ ), Mrs C Butterworth ( _Director of Income Generation_ ) and Mrs S Horner _(Director of Marketing, Communications & Engagement)._
The Senior Management Team reports to the Board of Trustees and attends regular meetings of the Board.
Operational risk is managed through the Senior Management Team, with key reference to the Care, Quality and Services sub-committee. The Senior Management Team meets weekly.
Pay for the Senior Management Team is set by the Trustees having regard to the job scoring matrix used throughout the Hospice to evaluate pay for all jobs and having regard to market salary rates.
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**ST JOHN’S HOSPICE NORTH LANCASHIRE AND SOUTH LAKES**
## **TRUSTEES’ ANNUAL REPORT (CONTINUED)**
## **FOR THE YEAR ENDED 31 MARCH 2023**
## **VOLUNTEER SUPPORT AT ST JOHN’S HOSPICE**
The Charity is heavily dependent on, and very thankful for, the support it receives from volunteers, who work to support the operation of the Hospice in a wide variety of ways, from helping to provide direct care, supporting income generation by fundraising or working in the charity shops, serving as Trustees, or in a host of other capacities. During 2022/23 Covid restrictions were eased which meant we could welcome back our volunteers. It was also a year of additional services, such as the bereavement service at the newly opened Forget Me Not Centre. We were delighted to see an influx of volunteers to support this new service.
During 2022/2023 the number of volunteer hours in the hospice increased compared with 2021/2022, due to the opening up of some services after the pandemic. Compared with 2021/2022 when we received the support of almost 40,000 volunteer hours, this year it was closer to 97,000 hours. This would suggest an economic value of some £1,392k to the Charity when calculated using the average staff cost of the department in which the volunteer works compared to £529k last year.
There are many more informal volunteers who help out with numerous fundraising and publicity events. The value of this support is incalculable but 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 charities to report on the public benefit of their activities. The Trustees have had regard to the Charity Commission’s guidance on public benefit and believe that an appreciation of the Charity’s public benefit can be obtained from the following review of its achievements and performance.
## **ACHIEVEMENTS AND PERFORMANCE 2022/2023**
There were a number of achievements during 2022/23. The most significant being the opening of the Forget Me Not Centre.
During the year we reviewed 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. It was clear from these conversations that Hospice care in our community is valued, it is also clear that the price of providing increasingly costly services to more and more people is potentially unsustainable in the long-term and that the challenges we face require a courageous response.
We believe that a successful future for St John’s demands a balance between stability and agility. Stability comes from the ethos of hospice care – what we are known for and the things we will not compromise such as excellence, compassion and dignity. However, we must also have the agility to respond to 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.
At the heart of the Strategic plan is for the Hospice to continue to provide for the needs of those facing life limiting illnesses in the locality.
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**ST JOHN’S HOSPICE NORTH LANCASHIRE AND SOUTH LAKES**
## **TRUSTEES’ ANNUAL REPORT (CONTINUED)**
## **FOR THE YEAR ENDED 31 MARCH 2023**
The Vision and Strategy identified the following six priorities in support of that mission.
- Develop and deliver high quality end of life care services with the professional competence and unique ethos that make us outstanding
- Proactively seek opportunities for collaborative working where appropriate
- Be an employer and volunteer base of choice
- Develop innovative, ethical and sustainable levels of resource to meet the service needs of our community
- Ensure St John’s is the charity of choice for our local community
- Ensure St John’s is the end of life charity of choice for providers.
To support the delivery of the 6 strategic priorities, we are required each year to produce a Quality Account outlining three key areas for improvement in the coming year.
The three key priorities for improvement were:
## _**Priority 1 – The formation of the Lancashire & south Cumbria Hospice Alliance**_
There are 8 adult Hospices and 2 children’s Hospices covering the new Lancashire and South Cumbria Integrated Care Board (ICB) footprint. During the pandemic, Hospices came together each Thursday lunchtime to share learning, updates and information. From this informal arrangement, a more formal collaboration began. In April 2022, the Lancashire & South Cumbria Hospice Collaborative was formed, its mission is “To ensure the population of Lancashire & South Cumbria receive the very best end of life and palliative care available”.
The Hospice collaborative aims:
- To influence and shape the future commissioning and delivery of integrated Palliative and End of Life Care (PaEOLC).
- To develop qualitative, person-centred outcome measures.
- To support the implementation of outcomes linked to the Ambitions Framework NICE guidance palliative and end of life care.
- To act as the infrastructure that delivers Lancashire & South Cumbria’s aspirations, standards and frameworks at a local level.
- To share and review data.
- To tackle inequality of access to Palliative and End of Life Care.
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**ST JOHN’S HOSPICE NORTH LANCASHIRE AND SOUTH LAKES**
## **TRUSTEES’ ANNUAL REPORT (CONTINUED)**
## **FOR THE YEAR ENDED 31 MARCH 2023**
- To ensure we continue to deliver the very best specialist PaEOLC to all adults, young people and children who need us - overcoming constraints both financial and workforce-related - by coming together, acting together and achieving together.
- To enable hospices to survive and thrive, whilst maintaining our identity, independence and freedom to innovate.
- To encourage shared innovation and learning.
- To reduce needless duplication, and share resources (staff, costs) wherever appropriate and feasible, so that every pound is stretched as far as possible for the people who need us.
- To advocate for a compassionate regional strategy.
Each Hospice contributed funding to recruit a Lancashire & South Cumbria Hospice Collaborative Strategic Lead. The purpose of this role is to ensure the collaborative is seen as “one voice” by the ICB and to ensure all opportunities for “strength in numbers” are grasped.
Our CEO is the chair of the Hospice Collaborative and, because of this role, attends the Integrated Care Partnership Board of the ICB.
A link to the Collaborative’s website can be seen here:
LSC Hospices Together (lscht.org.uk)
## _**Priority 2 – SJH @ 40 – Developing a sustainable Hospice for the Future**_
Our Hospice was built in the 1980s and will be 40 years’ old in 2026. The building is beginning to show signs of age, not only physically but also operationally. Whilst there is no sense of patients and families being concerned about this, the Trustees know we must plan for the future of Hospice care, and this cannot be done in a building that was designed decades ago.
In January 2023, a team engagement process began. We asked the team two questions:
- If we were starting again, what would the building look like in terms of patients and families?
- If we were starting again, what would the building look like in terms of team well-being?
We had a remarkable response to this with some key themes emerging:
- Clinical services should be co-located
- We should really think about quiet space for the team
- We must move the mortuary
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**ST JOHN’S HOSPICE NORTH LANCASHIRE AND SOUTH LAKES**
## **TRUSTEES’ ANNUAL REPORT (CONTINUED)**
## **FOR THE YEAR ENDED 31 MARCH 2023**
At the Board meeting in March, it was agreed that a steering group should be formed to progress this work. The steering group will consist of Trustees and team members. It was also agreed that the work should not be rushed. Whilst the idea of having the building project completed by our 40[th] anniversary in 2026 may seem attractive, in the current economic climate cost, in terms of materials and labour, must be a consideration for the steering group.
## _**Priority 3 – Development of an Education Strategy and Structure to support end of life care beyond the Hospice walls**_
In COVID we were unable to continue the previous education offering and the Learning and Development team roles were made redundant bar one person who co-ordinated mandatory training compliance. With the continuing pressure on NHS services, feedback from staff and the importance of effective recruitment and retention, it is clear that continuous professional development for our team and colleagues is key to ensuring the fundamentals of palliative care can be undertaken to ensure resources are utilised better.
With local ICB funding, the Hospice will be recruiting to a nurse specialist level education post. This post will work in one part of our catchment, the South Lakes, with our community, domiciliary agency and care home partners, to ensure the workforce understand how to identify palliative patients, give them the best fundamental care they can, and refer to St John’s Hospice for support and guidance.
The postholder will link with a similar post in the acute hospitals to ensure the same courses are offered, ensuring the consistent and ongoing education and support required. There will also be firmer links made with education strategy groups and the wide Health Education England, to ensure relevant guidance and procedures are included in the education.
We will also be working in partnership with neighbouring Hospices to jointly recruit a Hospice Collaborative Strategic Education Lead.
## **FINANCIAL REVIEW**
When we set the budget for the current financial year we were very aware of the difficulties in trying to quantify the effect the pandemic would have on the finances of the Hospice along with the impact of external factors such as a significant increase in the national minimum wage, increases in utility costs and a feeling of austerity within the public. Whilst we fully appreciate that the Trustees have the ongoing objective of running balanced budgets year on year, we recognised that this was a year we would need to draw on our reserves to fund anticipated shortfalls in income and increases in costs. This meant that we budgeted to make a deficit of £494,400.
During the financial year we received over £300,000 more legacy income than had been budgeted, a significant increase against budget of in-memoriam income, largely due to the increase in numbers on the inpatient unit and significant head of service staffing savings due to delays in recruitment.
As a result of this higher than expected income we have recorded consolidated net income of £140,885 before investment losses and the deficit was restricted to £140,890 post investment gains.
Set out below is an analysis of the main sources of charity income **.**
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**ST JOHN’S HOSPICE NORTH LANCASHIRE AND SOUTH LAKES**
## **TRUSTEES’ ANNUAL REPORT (CONTINUED)**
## **FOR THE YEAR ENDED 31 MARCH 2023**
Consolidated income for the year totalled £6,651,584 with the local ICB providing £1,167,070 to fund our core work and a further £963,017 to fund specific project initiatives. The remaining £4.5m was generated from our loyal supporters, specific funding initiatives and our investments.
Consolidated expenditure for the year totalled £6,510,699. Expenditure on charitable activities totalled £4,838,131 of which 83% was spent on staffing costs. The remaining £1,672,568 has been spent on raising funds.
Consolidated net income for the year was £140,885 pre investment gains and other losses, and a deficit of £140,890 after these adjustments. Our investment portfolio suffered from the change in the stock and financial markets around the world with losses of £281,775.
Full details of the Charity’s financial position and of its income and expenditure are set out in the Statements of Financial Activities, Balance Sheets and related notes which form part of these financial statements.
The continued uncertainty around the increased cost of living and rising inflation has again meant that setting a budget for 2023/2024 has been challenging as per previous years. Soaring costs, coupled with increases in the minimum and real living wage has been reflected in the deficit budget that has been set of £483,184 for the year which includes £127,943 of compelling projects. The Trustees are committed to using reserves to fund this deficit and the Senior Management Team is working closely with the Board to generate new funding streams and manage costs in line with anticipated future revenues.
We are indebted again to our grant funders who have supported us during the financial year, many of whom have supported us in the past. All funds received have been spent on the projects they were intended for. For those projects where grant funding has been received in advance but the costs have not yet been incurred, any grant monies received have been carried forward to the coming financial year.
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**ST JOHN’S HOSPICE NORTH LANCASHIRE AND SOUTH LAKES**
## **TRUSTEES’ ANNUAL REPORT (CONTINUED)**
## **FOR THE YEAR ENDED 31 MARCH 2023**
During the year ended 31 March 2023 we have received the following grants:
- ➢ The Albert Hunt Trust kindly gave us an unconditional grant which we used towards staffing our ward and community services teams.
- ➢ Eric Wright Charitable Trust gave us an unconditional grant which was also used towards staffing our ward and community services teams.
- ➢ Brownlie Trust gave us an unconditional grant again that was used towards funding our ward and community services staffing
- ➢ HSBC Group kindly gave us funds in order to buy furniture at the Forget Me Not Centre
- ➢ Walney Extension gave us a grant for 18 months to cover a large element of the young people’s Nourish project
- ➢ Sir John Fisher Fund gave us a grant towards the salary of a hospice at home nurse
- ➢ Morrisons Foundation paid for a cuddle bed for the ward
- ➢ Mr & Mrs Scholes kindly donated monies to build the Forget Me Not Centre
- ➢ Morecambe Men’s Committee donated monies for syringe drivers which are used within our community services team
- ➢ Population Investment Fund gave us funding to provide 3 Fatigue and Breathlessness groups
- ➢ The Francis C. Scott Foundation donated funds to support our bereavement services within South Cumbria
## **RISK MANAGEMENT**
The Trustees consider and assess on an on-going basis the major risks to which the Charity may be exposed. All risks identified are set out and monitored using the corporate risk register. Systems are in place to mitigate those risks. Where they are financial it is believed that the reserves policy and financial controls minimise the potential risks. In non-financial matters there are reviews, appraisals and regulatory procedures in place.
By far the biggest risk to the Hospice since the Covid-19 pandemic has been the cost of living crisis. There is uncertainty as to the levels of income whether these could be sustained and also be grown to meet the rising costs. Continuous monitoring of expenditure is now in place and the governance handbook has been reviewed by the Chair of the Trustees, the Chief Executive and the Director of Finance and Resources. The governance team has seen new staffing and all policies and procedures are being reviewed across the hospice.
Staff receive appropriate annual mandatory training covering health and safety issues such as fire safety, moving and handling, basic food hygiene, safeguarding, information confidentiality and infection control.
During the pandemic the Trustees were unable to visit the hospice. In December 2022 four Trustees did a walk about of the hospice and asked clinical and non-clinical staff about their experience in the hospice. The presence of the trustees within the hospice is seen by staff to be a benefit and shows staff that they are supported and being listened to. Further dates are planned during 2023/24.
Along with all charitable organisations, the Hospice has a number of regulators, the principal two being the Charity Commission and the Care Quality Commission (CQC). The Hospice complies with all Charity Commission requirements. The Care Quality Commission regularly inspects the operations of the Hospice, either through selfassessment or visits and their last routine unannounced inspection visit was on 26 July 2016 when the Hospice was rated overall as “Outstanding”. The overview given by the inspectors was as follows:
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**ST JOHN’S HOSPICE NORTH LANCASHIRE AND SOUTH LAKES**
**TRUSTEES’ ANNUAL REPORT (CONTINUED)**
## **FOR THE YEAR ENDED 31 MARCH 2023**
_“We spoke with people who used the service, relatives, staff and other professionals during this inspection. They told us the service provided an exemplary level of care and the leadership was exceptional. They spoke extremely highly of staff. One person told us, ‘From being in despair I am now able to focus on what matters. All with the help from the staff.’ A relative said, ‘The support from the hospice staff exceeded anything we had hoped for. It was fantastic.’_
_Care planning was extremely flexible, person centred and proactive. People and their families told us staff championed people’s right to choose how, where and when they wanted their care provided. They said staff were especially proactive and ‘made things happen’ in order to provide exceptional care for people. We saw staff had to support people to attend special family events with staff support and helped patients with arrangements to marry in the hospice._
_People said staff were extremely caring and respectful, listened to them and assisted them promptly. They told us staff always ‘went that extra mile and beyond’. We saw end of life care plans were informative and personalised and staff were remarkable in their determination to help people to carry out their final wishes. This included providing advice, support and staff at a person’s home so they could remain in the comfort of their home with loved ones._
_Families told us staff were extremely competent and compassionate in the way they assisted people to have control of illness symptoms and pain. They commended staff for the practical, emotional and spiritual support provided and outstanding care that enabled their relative to have a dignified, peaceful and pain free death. Written comments from families included, ‘Thank you for making the end of [family member’s] life so calm and dignified and filled with love’. And ‘You worked miracles and [person] died serenely and comfortably. Thank you.’_
_The management team and trustees worked collaboratively with other agencies to develop best practice, excellent partnership work and support for people. They carried out innovative research with local and national organisations and influenced best practice and policy-making. This further improved care practices and helped develop innovative support in the hospice and the community._
_Other professionals were extremely complimentary about St John’s Hospice, the staff attitudes and their competence. Staff demonstrated a highly sensitive and compassionate understanding of protecting and respecting people’s human rights. We found staff were passionate about providing a non-discriminatory and tremendously supportive service. People who used the service, their families and staff were supported throughout their ‘journey’. They were provided with complementary therapies such as reflexology and massage to assist with relaxation and reduce anxiety and distress. The care by hospice staff did not end when a person died; the hospice team continued to support families after their family member’s death. They were offered bereavement counselling and support groups for emotional wellbeing.”_
In March 2020, the CQC suspended their routine inspection programme in response to Covid-19 and do not intend to resume it for the immediate future. They continue to use a mix of off-site and on-site monitoring to ensure the public have assurance to the safety and quality of the services they receive. They now carry out a monthly review of data available to them and have found no evidence our rating should change.
However, the Hospice is keen to assure itself that the quality of service is of the highest standard, so in August 2022 a team from Healthwatch Lancashire were invited to conduct an “Enter and View” inspection of ward services. Healthwatch looked at:
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**ST JOHN’S HOSPICE NORTH LANCASHIRE AND SOUTH LAKES**
## **TRUSTEES’ ANNUAL REPORT (CONTINUED)**
## **FOR THE YEAR ENDED 31 MARCH 2023**
- The external and internal environment – First Impressions
- Observation of corridors, toilets and bathrooms
- Lounges and public areas
They then observed patient and staff interactions and interviewed patients (as appropriate) and their family members and carers.
Healthwatch could find no areas for improvement stating:
_“No areas for improvement were identified during the visit and the quality of service was deemed to be a prominent level”._
Full details of the Charity Commission Report, the Healthwatch “Enter & View” Inspection report and Care Quality Commission’s inspection can be found on the respective organisation’s web-site.
The Hospice takes the role of clinical governance very seriously and monitors all areas to ensure clinical effectiveness; patient safety and patient experience are at the forefront of care. Our corporate and clinical governance structures ensure that we have both the systems and processes in place to maintain a viable and responsible operation, whilst ensuring that our services are of the highest quality and meet the aspirations of our vision.
The Integrated Governance Committee, which comprises all members of the Senior Management Team, oversees the development, implementation and monitoring of the Hospice’s integrated governance arrangements. In addition it looks at the systems and processes by which the Hospice leads, directs and controls its functions in order to achieve strategic organisational objectives, assure safety and optimise quality of service. The Committee also seeks to ensure that all statutory responsibilities of the Hospice are covered appropriately and all requirements of our various regulators are met. The Committee reports directly to the relevant Board subcommittees.
The annual Data Security & Protection Toolkit was completed in line with the NHS’s deadline of the 30[th] June 2023.
## **Serious Incidents**
There are no serious incidents to report.
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**ST JOHN’S HOSPICE NORTH LANCASHIRE AND SOUTH LAKES**
## **TRUSTEES’ ANNUAL REPORT (CONTINUED)**
## **FOR THE YEAR ENDED 31 MARCH 2023**
## **FUNDRAISING**
With less than one third of our funding being received from the ICB, fundraising is an integral part of the work we do at the Hospice to ensure that our services can continue to be provided free of charge. We are grateful for the support of the very many people and organisations within our community who raise funds on our behalf.
We take our responsibilities towards fundraising very seriously and are committed to ensuring that the standards we adopt for fundraising mirror our vision and values treating everyone with care and compassion.
The Director of Income Generation and the Director of
Marketing and Communications are responsible for devising and delivering the annual Income Generation, Communications and Engagement strategy.
Income Generation fundraising activities cover:
- Individual giving
- Community and corporate fundraising
- Fundraising events organised by the Hospice
- Sourcing of grants
- Legacy fundraising
- Operation of a lottery
- Selling second hand goods through our charity shops
- Operating a café within the Hospice
- Operating a gift shop within the café.
The Trustees are ultimately responsible for our fundraising activity and so review and approve the strategy and budget each year. The Director of Income Generation reports to the Board of Trustees through the quarterly Fundraising and Communications sub-committee and at the full Board meetings on performance and any relevant issues.
As well as fundraisers who are either employed by, or volunteer for, the Hospice we currently have arrangements with the following commercial participators/professional fundraisers:
|**Organisation**|**Type**|**Nature of relationship**|**How we oversee and monitor their work**|
|---|---|---|---|
|Furness
Building Society|Commercial
participator|Charity Affinity account|Contract in place and regular monitoring
and reviews.|
|Integrated
Promotions Ltd|Professional
fundraiser|Provision of canvassing
services|Contract in place.
Licenced and regulated by the Gambling
Commission.|
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**ST JOHN’S HOSPICE NORTH LANCASHIRE AND SOUTH LAKES**
## **TRUSTEES’ ANNUAL REPORT (CONTINUED)**
## **FOR THE YEAR ENDED 31 MARCH 2023**
||||Bound by the Code of Practice of the
Fundraising Regulator.
Regular training and updates for
canvassers.
Regular communication, feedback and
meetings.
Quality monitoring.
Complaints procedure in situ.|
|---|---|---|---|
|Global
Adventure
Challenges|Commercial
participator|Provider of Overseas
treks|Contract in place.
Regular communication, feedback and
meetings.
ATOL Protection 6506.|
To ensure that we protect the public, including vulnerable people, from unreasonably intrusive or persistent fundraising approaches, and undue pressure to donate:
- ➢ We are registered with the Fundraising Regulator and committed to adhering to all recognised standards in relation to our fundraising 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 to fundraising regulation and legislation upon induction and periodically thereafter as required. Volunteers are also trained in compliance where necessary for their role
- ➢ In line with GDPR and the Fundraising Preference Service we promptly action any requests for removal from our mailing lists by amending their contact preferences.
- ➢ We do not sell the data of any of our donors and supporters to 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 demonstrate a track record of best practice in the sector and compliance with the Fundraising Regulator’s code of conduct.
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**ST JOHN’S HOSPICE NORTH LANCASHIRE AND SOUTH LAKES**
**TRUSTEES’ ANNUAL REPORT (CONTINUED)**
## **FOR THE YEAR ENDED 31 MARCH 2023**
In addition we have a Risk Management Policy so as to minimise or, as far as it reasonably practicable, eliminate any risks to patients, staff, volunteers, supporters, members of the public or the organisation’s reputation in relation to our fundraising activity. Staff identify and assess risks and put any necessary preventative controls in place.
## **PLANS FOR THE FUTURE**
The pandemic has not stopped the Board of Trustees making plans for the 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:
## **Engagement with the public to develop a new Hospice Strategy**
The current Hospice Strategy will end in 2023. Trustees are keen to hear from members of the public, our team and Volunteers to hear what matters most to them about the future of Hospice care. In December, January and February, more than 500 local people took part in an engagement roadshow. The clear message was that Hospice’s are much needed but we need to provide more support in people’s own homes through the night and for short respite breaks. The next Hospice strategy will be developed to reflect what we heard.
-15-
**ST JOHN’S HOSPICE NORTH LANCASHIRE AND SOUTH LAKES**
## **TRUSTEES’ ANNUAL REPORT (CONTINUED)**
## **FOR THE YEAR ENDED 31 MARCH 2023**
## **Preparation for the SJH @ 40 Building Project**
In 2026 our Hospice building will be 40 years old. Before signs of wear become apparent, we are keen to undertake major, structural work to ensure our facility is fit for the future. A new clinical strategy is being developed, visits to new Hospice sites are being planned and a steering group of Trustees and key members of the Executive team have begun to plan for SJH @ 40.
## **Building positive relationships with the new ICB**
In 2021, commissioning arrangements changed as CCGs disbanded and ICBs formed. ICBs will work at scale across a much bigger patch covering the whole of Lancashire & South Cumbria – a population of 1.8million people. The formation of the Hospice collaborative has been fundamental to this new relationship. The CEO is on the Board of the new Integrated Care Partnership and is working closely with new members of the ICB Board to ensure Hospices are not forgotten during this period of fast-paced change.
## **FINANCIAL REVIEW**
## **Reserves policy**
At 31 March 2023 the Hospice's reserves comprise: -
**Total funds £15,103,969**
## **Of which:**
Tangible fixed assets £5,191,181 Designated funds £5,080,307 Restricted income funds £39,748 **Unallocated free reserves £4,792,733**
The Hospice could not do what it does without its dedicated team of around 195 skilled and professional staff. The Hospice seeks to employ managers and staff that have both the necessary skills and experience and the right values and attitudes to provide its very special service and it is their employment costs that make up the vast majority of the Hospice’s running costs.
This year with so much uncertainty the Trustees have remained very mindful of the need to maintain sufficient reserves to meet the working capital needs of the Charity, fund unexpected expenditure and shortfalls in income and to allow appropriate and monitored service expansion. Furthermore to ensure the financial security of the Charity no new service developments are introduced unless the Trustees are confident that they are both affordable and sustainable. In addition we always consider the revenue consequences of any capital expenditure.
-16-
**ST JOHN’S HOSPICE NORTH LANCASHIRE AND SOUTH LAKES**
## **TRUSTEES’ ANNUAL REPORT (CONTINUED)**
## **FOR THE YEAR ENDED 31 MARCH 2023**
The Trustees monitor the level of reserves each quarter through the Finance and Resources sub-committee and continuously review its reserves policy. In 2021 the Trustees agreed to adopt a policy of retaining unallocated free reserves to cover 12-18 months’ full operating costs and this was expanded further at a trustee away day in February 2023 to include a specific reserve for legacies, in case the budget is not met. This is in line with other hospices.
Unallocated and designated reserves at 31 March 2023 amounted to £9,873,040 which represents 18 months full operating costs.
## **Investment policy**
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. Additional funds are invested in equities, gilts, fixed interest and property funds with the intention of covering future inflation in running costs.
The Charity has a policy to maintain reserves for the purposes given above. The reserves are to be invested for the long term in portfolios and financial instruments which the Trustees deem to represent an acceptable level of risk combined with the aim of providing a reasonable return on the funds.
## _Investment criteria:_
- Capital preservation of adequate reserves for known and unforeseen shorter term needs
- Balance of reserves invested with the potential of growth above inflation over the longer term
- Avoidance of tobacco related investments.
The investment policy and performance of funds against the policy is reviewed at each sub-committee meeting with investment managers instructed to carry out any recommended changes as to the investment instruments. The managers are instructed to keep a balanced portfolio to spread the risk and maximise capital growth without jeopardising revenue income.
The Trustees are satisfied with the performance of the investment portfolio over the period.
-17-
**ST JOHN’S HOSPICE NORTH LANCASHIRE AND SOUTH LAKES**
## **TRUSTEES’ ANNUAL REPORT (CONTINUED)**
## **FOR THE YEAR ENDED 31 MARCH 2023**
## **TRUSTEES’ RESPONSIBILITIES**
## **Trustees’ responsibilities in relation to the financial statements**
The Trustees are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
The law applicable to charities in England & Wales requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Charity, and of the income and expenditure of the Charity, for that period. In preparing these financial statements, the Trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP (FRS102);
- make judgements and estimates that are reasonable and prudent;
- state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Charity will continue in operation.
The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the Charity and enable them to ensure that the financial statements comply with the Charity’s governing document, the Charities Act 2011, the Statement of Recommended Practice: Accounting and Reporting by Charities preparing the accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued on 16 July 2014, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS102) and UK Generally Accepted Accounting Practice as it applies from 1 January 2015.
## **AUDITORS**
MHA Moore and Smalley have indicated their willingness to accept reappointment as auditors to the Charity.
12/10/2023 The Trustees Report was approved on …………………. and was signed on behalf of the Trustees by:
**…………………………………… C Heginbotham Chair – Board of Trustees**
-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 2023**
## **Opinion**
We have audited the financial statements of St John’s Hospice North Lancashire and South Lakes (the ‘parent Charity’) and its subsidiaries (the ‘group’) for the year ended 31 March 2023 which comprise the consolidated and charity statement of financial activities, the consolidated and charity balance sheets, the consolidated and charity cash flow statements and the notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 _The Financial Reporting Standard applicable in the UK and Republic of Ireland_ (United Kingdom Generally Accepted Accounting Practice).
This report is made solely to the Charity’s Trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the Charity’s Trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the Charity’s Trustees as a body, for our audit work, for this report, or for the opinions we have formed.
In our opinion the financial statements:
- give a true and fair view of the state of the group’s and parent Charity’s affairs as at 31 March 2023, and of the group’s incoming resources and application of resources, including its income and expenditure, for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Charities Act 2011.
## **Basis for opinion**
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent Charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## **Conclusions relating to going concern**
In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group and parent charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
-19-
**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 2023**
## **Other information**
The other information comprises the information included in the trustees annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
## **Matters on which we are required to report by exception**
We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:
- the information given in the financial statements is inconsistent in any material respect with the Trustees’ report; or
- sufficient 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 and explanations we require for our audit.
## **Responsibilities of Trustees**
As explained more fully in the Trustees’ responsibilities statement, set out on page 18, the Trustees are responsible for the preparation of financial statements which give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the Trustees are responsible for assessing the group’s and parent Charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the group or the parent Charity or to cease operations, or have no realistic alternative but to do so.
## **Auditor’s responsibilities for the audit of the financial statements**
We have been appointed as auditor under section 151 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 misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
-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 (CONTINUED)**
## **FOR THE YEAR ENDED 31 MARCH 2023**
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
- Enquiries with the board about any known or suspected instances of non-compliance with laws and regulations, including fraud;
- Challenging assumptions and judgements made by the board in their significant accounting estimates;
- An evaluation of the risk of management override of controls and subsequent testing, including through testing journal entries and other adjustments for appropriateness; and
- An evaluation of the charity’s internal control environment.
- Auditing the risk of fraud in revenue, including through the testing of the cut-off of income at the year end and sales transaction testing to ensure revenue is complete in the financial statements and recognised in the correct accounting period.
Because of the industry in which the charity operates, we identified the following areas as those most likely to have a material impact on the financial statements: Compliance with the Care Quality Commission requirements, Health and Safety, compliance with Gambling Commission rules, in particular holding the relevant lottery licence; employment law, and compliance with the UK Charities Act.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:
- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the group’s internal control.
- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Trustees.
- Conclude on the appropriateness of the Trustees’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the group’s or Charity’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the group or parent Charity to 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 (CONTINUED)**
## **FOR THE YEAR ENDED 31 MARCH 2023**
- Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
- Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
## **MHA Moore and Smalley Chartered Accountants and Statutory Auditor**
Priory Close St Mary’s Gate Lancaster LA1 1XB
## 19/10/2023
……………………..
_MHA Moore and Smalley is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006._
-22-
**ST JOHN’S HOSPICE NORTH LANCASHIRE AND SOUTH LAKES**
## **CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES**
## **FOR THE YEAR ENDED 31 MARCH 2023**
|**Income from:**
Donations and legacies
**3**
Charitable activities
**4**
Other trading activities
**5**
Investments
**6**
Other
**7**
**Total**
**Expenditure on:**
Charitable activities
**9**
Raising funds
**10**
**Total**
(Loss)/gain on revaluation of investments
**Net income/(expenditure)**
Transfer between funds
**25**
**Other recognised gains/(losses)**
Profit/(loss) on disposal of fixed assets
Gains on disposal of investments
**Net movement in funds**
**Reconciliation of funds:**
Total funds brought forward
**Total funds carried forward**
**27**|**Unrestricted**
**Restricted**
**Total funds**
Total funds
**funds**
**funds**
**2023**
2022
**£**
**£**
**£**
£
**1,825,597**
**12,500**
**1,838,097**
2,315,755
**2,130,087**
**-**
**2,130,087**
2,008,016
**2,414,835**
**146,570**
**2,561,405**
1,931,645
**111,748**
**-**
**111,748**
90,319
**10,247**
**-**
**10,247**
1,880,454|
|---|---|
||**6,492,514**
**159,070**
**6,651,584**
8,226,189|
||**4,735,920**
**102,211**
**4,838,131**
4,359,527
**1,672,568**
**-**
**1,672,568**
1,402,627|
||**6,408,488**
**102,211**
**6,510,699**
5,762,154|
||**(210,088)**
**-**
**(210,088)**
96,102|
||**(126,062)**
**56,859**
**(69,203)**
2,560,137|
||**700,803**
**(700,803)**
**-**
-
**-**
**-**
**-**
(238,905)
**(71,687)**
**-**
**(71,687)**
84,860|
||**503,054**
**(643,944)**
**(140,890)**
2,406,092
**14,561,167**
**683,692**
**15,244,859**
12,838,767|
||**15,064,221**
**39,748**
**15,103,969**
15,244,859|
|||
All income and expenditure derive from continuing activities.
All gains and losses recognised in each period are included above.
The notes on page 28 to 48 form part of these financial statements.
-23-
**ST JOHN’S HOSPICE NORTH LANCASHIRE AND SOUTH LAKES**
## **CHARITY STATEMENT OF FINANCIAL ACTIVITIES**
## **FOR THE YEAR ENDED 31 MARCH 2023**
|**Income from:**
Donations and legacies
Charitable activities
Other trading activities
Investments
Other
**Total**
**Expenditure on:**
Charitable activities
Raising funds
**Total**
(Loss)/gain on revaluation of investments
**Net income/(expenditure)**
Transfer between funds
**25**
**Other recognised gains/(losses)**
Profit/(loss) on disposal of fixed assets
Gains on disposal of investments
**Net movement in funds**
**Reconciliation of funds:**
Total funds brought forward
**Total funds carried forward**
**27**|**Unrestricted**
**Restricted**
**Total funds**
Total funds
**funds**
**funds**
**2023**
2022
**£**
**£**
**£**
£
**1,825,597**
**12,500**
**1,838,097**
2,315,755
**2,130,087**
**-**
**2,130,087**
2,008,016
**1,458,915**
**146,570**
**1,605,485**
1,175,796
**111,748**
**-**
**111,748**
90,319
**78,135**
**-**
**78,135**
1,806,639|
|---|---|
||**5,604,482**
**159,070**
**5,763,552**
7,396,525|
||**4,728,960**
**102,211**
**4,831,171**
4,354,307
**736,236**
**-**
**736,236**
603,885|
||**5,465,196**
**102,211**
**5,567,407**
4,958,192|
||**(210,088)**
**-**
**(210,088)**
96,102|
||**(70,802)**
**56,859**
**(13,943)**
2,534,435|
||**700,803**
**(700,803)**
**-**
-
**-**
**-**
**-**
(238,905)
**(71,687)**
**-**
**(71,687)**
84,860|
||**558,314**
**(643,944)**
**(85,630)**
2,380,390
**14,589,711**
**683,692**
**15,273,403**
12,893,013|
||**15,148,025**
**39,748**
**15,187,773**
15,273,403|
|||
All income and expenditure derive from continuing activities.
All gains and losses recognised in each period are included above.
The notes on page 28 to 48 form part of these financial statements.
-24-
**ST JOHN’S HOSPICE NORTH LANCASHIRE AND SOUTH LAKES**
## **CONSOLIDATED BALANCE SHEET**
## **AS AT 31 MARCH 2023**
|**Fixed assets**
Tangible assets
**15**
Investments
**16**
**Current assets**
Stock
Debtors
**17**
Cash at bank and in hand
Cash held with investment managers
**Creditors:**amounts falling due within
one year
**18**
**Net current assets**
**Total assets less current liabilities**
**Net assets**
**Funds:**
Unrestricted funds
**23**
Designated funds
**23**
Restricted funds
**25**
**Total funds**|**£**
**£**
£
£
**5,191,181**
5,129,376
**4,067,558**
4,347,152
**9,258,739**
9,476,528
**9,905**
10,159
**278,196**
1,900,709
**5,741,098**
4,197,630
**182,381**
118,589
**6,211,580**
6,227,087
**(366,350)**
(458,756)
**5,845,230**
5,768,331
**15,103,969**
15,244,859
**15,103,969**
15,244,859
**9,983,914**
10,295,167
**5,080,307**
4,266,000
**39,748**
683,692
**15,103,969**
15,244,859
**2023**
2022|
|---|---|
||**9,905**
**278,196**
**5,741,098**
**182,381**|
||**6,211,580**
**(366,350)**|
|||
## 13/10/2023
These accounts were approved by the Trustees and authorised for issue on ……………, and are signed on their behalf by:
…………………………………… …………………………………… **C Heginbotham M Cullinan Chair – Board of Trustees**
**Chairman – Finance and Resources Committee**
The notes on page 28 to 48 form part of these financial statements.
-25-
**ST JOHN’S HOSPICE NORTH LANCASHIRE AND SOUTH LAKES**
## **CHARITY BALANCE SHEET**
## **AS AT 31 MARCH 2023**
|**Fixed assets**
Tangible assets
**15**
Investments
**16**
**Current assets**
Stock
Debtors
**17**
Cash at bank and in hand
Cash held with investment managers
**Creditors:**amounts falling due within
one year
**18**
**Net current assets**
**Total assets less current liabilities**
**Net assets**
**Funds:**|**£**
**£**
£
£
**5,163,127**
5,123,166
**4,137,561**
4,417,155
**9,300,688**
9,540,321
**3,052**
3,052
**965,987**
2,196,894
**5,055,724**
3,845,249
**182,381**
118,589
**6,207,144**
6,163,784
**(320,059)**
(430,702)
**5,887,085**
5,733,082
**15,187,773**
15,273,403
**15,187,773**
15,273,403
**2023**
2022|**£**
**£**
£
£
**5,163,127**
5,123,166
**4,137,561**
4,417,155
**9,300,688**
9,540,321
**3,052**
3,052
**965,987**
2,196,894
**5,055,724**
3,845,249
**182,381**
118,589
**6,207,144**
6,163,784
**(320,059)**
(430,702)
**5,887,085**
5,733,082
**15,187,773**
15,273,403
**15,187,773**
15,273,403
**2023**
2022|
|---|---|---|
||**3,052**
**965,987**
**5,055,724**
**182,381**||
||**6,207,144**
**(320,059)**||
||||
|Unrestricted funds
**27**||**10,067,718**
10,323,711|
|Designated funds
**27**
Restricted funds
**25**||**5,080,307**
4,266,000
**39,748**
683,692|
|**Total funds**||**15,187,773**
15,273,403|
||||
## 13/10/2023
These accounts were approved by the Trustees and authorised for issue on ……………., and are signed on their behalf by:
…………………………………… …………………………………… **C Heginbotham M Cullinan Chair – Board of Trustees Chairman – Finance and Resources Committee**
The notes on page 28 to 48 form part of these financial statements.
-26-
**ST JOHN’S HOSPICE NORTH LANCASHIRE AND SOUTH LAKES**
## **GROUP AND CHARITY CASH FLOW STATEMENT**
## **FOR THE YEAR ENDED 31 MARCH 2023**
||**Group**|Group|**Charity**|Charity|
|---|---|---|---|---|
||**2023**|2022|**2023**|2022|
||**£**|£|**£**|£|
|**Cash generated in operating activities**|**1,661,423**|1,325,933|**1,303,023**|1,121,825|
|**Cashflows from investing activities**|||||
|Investment income|**111,748**|90,319|**111,748**|90,319|
|Purchase of fixed assets (including|||||
|investments)|**(595,001)**|(1,674,209)|**(569,594)**|(1,666,447)|
|Receipts from sale of fixed assets (including|||||
|investments)|**429,090**|652,157|**429,090**|652,157|
|**Cash provided by/(used in) investing**|||||
|**activities**|**1,607,260**|394,200|**1,274,267**|197,854|
|**Increase in cash and cash equivalents**|||||
|**in the year**|**1,607,260**|394,200|**1,274,267**|197,854|
|Cash and cash equivalents brought forward|**4,316,219**|3,922,019|**3,963,838**|3,765,984|
|**Cash and cash equivalents carried**|||||
|**forward**|**5,923,479**|4,316,219|**5,238,105**|3,963,838|
|**Reconciliation of net movement in funds to**|**net cashflow from operating activities**||||
|Net movement in funds|**(69,203)**|2,560,137|**(13,943)**|2,534,435|
|Loss (gain) on revaluation of investments|**210,088**|(96,102)|**210,088**|(96,102)|
|Investment income received|**(111,748)**|(90,319)|**(111,748)**|(90,319)|
|Depreciation and amortisation|**101,925**|85,401|**98,362**|82,149|
|(Increase)/Decrease in stock|**254**|(2,000)|**-**|(2,402)|
|(Increase)/Decrease in debtors|**1,622,513**|(1,292,214)|**1,230,907**|(1,444,882)|
|Increase/(Decrease) in creditors|**(57,685)**|139,843|**(34,162)**|117,759|
|Increase/(Decrease) in deferred income|**(34,721)**|21,187|**(76,481)**|21,187|
|**Net cash generated in operating**|||||
|**activities**|**1,661,423**|1,325,933|**1,303,023**|1,121,825|
|**Components of cash and cash equivalents**|||||
|Cash at bank and in hand|**5,741,098**|4,197,630|**5,055,724**|3,845,249|
|Cash held with investment managers|**182,381**|118,589|**182,381**|118,589|
||**5,923,479**|4,316,219|**5,238,105**|3,963,838|
The notes on page 28 to 48 form part of these financial statements.
-27-
**ST JOHN’S HOSPICE NORTH LANCASHIRE AND SOUTH LAKES**
## **NOTES TO THE ACCOUNTS**
## **FOR THE YEAR ENDED 31 MARCH 2023**
## **1 Accounting policies**
## **Basis of accounting**
St John’s Hospice North Lancashire and South Lakes is a charitable incorporated organisation (CIO) registered in the United Kingdom. The address of the CIO, the nature of its operations and its principal activities are all detailed in the Trustees’ report of these financial statements.
The CIO constitutes a public benefit entity as defined by FRS102. The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011 and UK Generally Accepted Practice.
The financial statements have been prepared on a going concern basis under the historical cost convention. The financial statements are prepared in sterling which is the functional currency of the Charity.
The financial statements have been prepared to give a ‘true and fair’ view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a ‘true and fair’ view. This departure has involved following Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standards applicable in the UK and Republic of Ireland (FRS102) issued on 16 July 2014 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.
The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.
## **Basis of consolidation**
The consolidated accounts of the group incorporate the accounts of St John’s Hospice North Lancashire and South Lakes (“the Charity”) and its three wholly owned subsidiary undertakings, St John’s Hospice Shops Limited, St John’s Hospice Lancaster Limited and St John’s Hospice Catering Limited. The results of these subsidiaries are consolidated on a line by line basis.
## **Income**
Income including donations and gifts receivable is credited to the Statement of Financial Activities in the period in which it is receivable.
Legacies are regarded as receivable once probate has been granted, there is sufficient evidence regarding the certainty of the receipt and there is a sufficiently reliable measurement of the amount in accordance with the recognition criteria of the SORP. In practice this is rarely before the receipt of a letter advising of an intended payment or transfer. Interim receipts are treated 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 treated as a contingent asset and disclosed if material in note 3.
Funding received in advance including grants are treated as deferred income where the funding agency requires an ongoing service to be provided by expenditure in the future period to which the funding relates.
Other income includes income from NHS England and other support from the UK government including under the Coronavirus Job Retention Scheme (CJRS) to support the charity following the impact of COVID-19.
-28-
**ST JOHN’S HOSPICE NORTH LANCASHIRE AND SOUTH LAKES**
## **NOTES TO THE ACCOUNTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023**
## **1 Accounting policies (continued)**
## **Expenditure**
Expenditure is recognised on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably. Expenditure is categorised under the following headings:
- Expenditure on the provision of Hospice services and associated service costs
- Expenditure on raising funds
Irrecoverable VAT is charged as an expense against the activity for which expenditure arose.
## **Donated services and facilities**
Donated services and facilities are recognised as income when the Charity has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit is probable and that economic benefit can be reliably measured. In accordance with SORP (FRS 102) no amounts are included in the financial statements for services donated by volunteers.
On receipt, donated professional services and donated facilities are recognised on the basis of the value of the gift to the Charity which is the amount the Charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure on period of receipt.
## **Fixed assets**
Fixed assets are stated at cost less depreciation. Potential capital items with a cost of less than £2,000 or items that are deemed to have no value once in use by the Hospice are expensed through the Statement of Financial Activities. Fixed assets are depreciated on a straight line basis over their anticipated useful lives.
Freehold land and buildings - 1% per annum Leasehold improvements - Over the course of the lease Motor vehicles - 25% per annum Fixtures and equipment - 20% per annum
Freehold land and buildings includes non-depreciable land, the cost of which is not considered material.
The Forget Me Not Centre included within Assets Under Construction last year was completed during the year and transferred to freehold land and buildings during the year.
## **Investments**
Investments are shown at their market value on the date of the balance sheet. Gains and losses on disposal and revaluation of assets are charged or credited to the Statement of Financial Activities.
Investments in subsidiaries are held at cost less amounts written off.
-29-
**ST JOHN’S HOSPICE NORTH LANCASHIRE AND SOUTH LAKES**
## **NOTES TO THE ACCOUNTS (CONTINUED)**
## **FOR THE YEAR ENDED 31 MARCH 2023**
## **1 Accounting policies (continued)**
## **Stock**
Stocks consist of shop items purchased for resale and are stated at the lower of cost and net realisable value. The Charity adopts a cost formula of FIFO.
## **Debtors and creditors within one year**
Debtors and creditors with no stated interest rate and receivable and payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in expenditure.
## **Pensions**
The Hospice operates a defined contribution scheme. Contributions are charged in the Statement of Financial Activities 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 to this are also charged in the Statement of Financial Activities as they become payable (see note 22).
## **Fund accounting**
Unrestricted funds - general funds are available for use at the discretion of the Trustees in furtherance of the general objectives of the Charity.
Restricted funds - restricted funds arise where there is a donor imposed restriction on the use of the funds, or the funds have arisen in response to an appeal for a specific purpose.
Designated funds - designated funds are unrestricted funds set aside by the Trustees for particular purposes.
Transfers are made from Restricted to Unrestricted funds where the expenditure has been fully made in accordance with the objects of the fund.
## **Cash and cash equivalents**
Cash balances comprise amounts held on deposit with recognised banks and building societies.
## **Operating leases**
Rentals applicable to operating leases are charged to the Statement of Financial Activities over the period in which the cost is incurred.
## **Taxation**
The Charity is exempt within the meaning of schedule 3 of the Charities Act 2011 and is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charity for UK corporation tax purposes.
-30-
**ST JOHN’S HOSPICE NORTH LANCASHIRE AND SOUTH LAKES**
**NOTES TO THE ACCOUNTS (CONTINUED)**
## **FOR THE YEAR ENDED 31 MARCH 2023**
## **1 Accounting policies (continued)**
## **Going concern**
The financial statements have been prepared on a going concern basis as the Trustees believe that no material uncertainties exist. The Trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure is sufficient with the level of reserves for the Charity to be able to continue as a going concern.
## **Financial instruments**
The Charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the Charity’s balance sheet when the Charity becomes party to contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
## _Basic financial assets_
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at 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.
## _Impairment of financial assets_
Financial assets are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated 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 at the asset’s original effective interest rate. The impairment loss is recognised in the statement of comprehensive income.
If there is a decrease in the impairment loss arising from an event occurring 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 previously been recognised. The impairment reversal is recognised in the statement of comprehensive income.
## _De-recognition of financial assets_
Financial assets are de-recognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the Charity transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
-31-
**ST JOHN’S HOSPICE NORTH LANCASHIRE AND SOUTH LAKES**
**NOTES TO THE ACCOUNTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023**
## **1 Accounting policies (continued)**
_Classification of financial liabilities_
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Charity after deducting all of its liabilities.
## _Basic financial liabilities_
Basic financial liabilities, including creditors, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest.
Financial liabilities classified as payable within one year are not amortised. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
_De-recognition of financial liabilities_
Financial liabilities are de-recognised when the Charity’s contractual obligations expire or are discharged or cancelled.
## **2 Judgements and key sources of estimation uncertainty**
In the application of the Charity’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
## **Key assumptions, judgements and estimates**
In the opinion of the Trustees’ there have been no significant judgements (apart from those involving estimates) made in the process of applying the above accounting policies.
There have been no key assumptions concerning future and other key sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.
The Charity’s key estimates are considered to be depreciation charges which are explained in the fixed asset policy on page 29.
-32-
**ST JOHN’S HOSPICE NORTH LANCASHIRE AND SOUTH LAKES**
## **NOTES TO THE ACCOUNTS (CONTINUED)**
## **FOR THE YEAR ENDED 31 MARCH 2023**
## **3 Income from donations and legacies**
|General donations
Gift aid
Legacies|**Unrestricted**
**Restricted**
**Total**
Total
**funds**
**funds**
**2023**
2022
**£**
**£**
**£**
£
565,529
-
**565,529**
1,139,207
146,670
-
**146,670**
123,344
1,113,398
12,500
**1,125,898**
1,053,204|
|---|---|
||**1,825,597**
**12,500**
**1,838,097**
2,315,755|
Certain gifts are received with a request that the money be spent on specific items of equipment or for specific revenue purposes. The amounts so received are included in income and the cost of the related expenditure in the relevant category of expenditure. It is the Trustees’ policy to spend all such gifts for the purpose requested.
At the period end, the Trustees had been notified of legacies approximating £1,241,198 which do not meet the criteria for inclusion in these financial statements under SORP (FRS 102) which is further explained in the accounting policies on page 32.
General donation income of £678,411 in the comparative period represented restricted income. All other income was unrestricted.
## **4 Income from charitable activities**
|**Income from charitable activities**||
|---|---|
|NHS core funding
NHS specific projects
Non-NHS income|**Unrestricted**
**Restricted**
**Total**
Total
**funds**
**funds**
**2023**
2022
**£**
**£**
**£**
£
1,167,070
-
**1,167,070**
1,145,304
812,298
-
**812,298**
743,988
150,719
-
**150,719**
118,724|
||**2,130,087**
**-**
**2,130,087**
2,008,016|
|||
Income from charitable activities is spent in accordance with the terms of the agreement or contract under which it is received.
All income from charitable activities in the comparative period was unrestricted.
-33-
**ST JOHN’S HOSPICE NORTH LANCASHIRE AND SOUTH LAKES**
## **NOTES TO THE ACCOUNTS (CONTINUED)**
## **FOR THE YEAR ENDED 31 MARCH 2023**
## **5 Income from other trading activities**
|Fundraising events
Conditional grants
Lottery income
Retail activities
Café income|**Unrestricted**
**Restricted**
**Total**
Total
**funds**
**funds**
**2023**
2022
**£**
**£**
**£**
£
716,764
-
**716,764**
477,615
-
146,570
**146,570**
56,686
417,892
-
**417,892**
423,803
1,130,316
-
**1,130,316**
955,140
149,863
-
**149,863**
18,401|
|---|---|
||**2,414,835**
**146,570**
**2,561,405**
1,931,645|
|||
Conditional grant income of £56,686 in the comparative period represented restricted income. All other income was unrestricted **.**
## **6 Income from investments**
|Bank and investment interest receivable
Interest on Government securities and
dividends received|**Unrestricted**
**Restricted**
**Total**
Total
**funds**
**funds**
**2023**
2022
**£**
**£**
**£**
£
26,866
-
**26,866**
4,232
84,882
-
**84,882**
86,087|
|---|---|
||111,748
-
**111,748**
90,319|
|||
All income from investments in the comparative period was unrestricted.
## **7 Other income**
|**Other income**||
|---|---|
|NHSE funding
CJRS income
Retail grants
Other income|**Unrestricted**
**Restricted**
**Total**
Total
**funds**
**funds**
**2023**
2022
**£**
**£**
**£**
£
-
-
**-**
1,766,105
-
**-**
**-**
20,559
-
-
**-**
74,552
10,247
-
**10,247**
19,238|
||**10,247**
**-**
**10,247**
1,880,454|
|||
Conditional NHSE income of £1,766,105 in the comparative period represented restricted income. All other income was unrestricted.
-34-
**ST JOHN’S HOSPICE NORTH LANCASHIRE AND SOUTH LAKES**
## **NOTES TO THE ACCOUNTS (CONTINUED)**
## **FOR THE YEAR ENDED 31 MARCH 2023**
**8 Income from subsidiaries’ trading activities**
|**Income from subsidiaries’ trading activities**||
|---|---|
|**St John's Hospice Shops Limited (Company No. 02490956)**
**Turnover**
Cost of sales
**Gross profit**
Administration costs
Other operating income
**Operating (loss)/profit**
**(Loss)/profit before charitable donation**
**Assets**
**Liabilities**
**Share capital and reserves**
**St John's Hospice Lancaster Limited (Company No. 07216444)**
**Turnover**
Cost of sales
**Gross profit**
Administration costs
**Operating profit**
**Profit before charitable donation**
**Assets**
**Liabilities**
**Share capital and reserves**|**2023**
2022
**£**
£
**784,368**
716,554
**(584,176)**
(517,054)|
||**200,192**
199,500
**(274,080)**
(257,302)
**5,385**
79,568|
||**(68,503)**
21,766|
||**(68,503)**
21,766|
||**571,641**
383,449
**(610,279)**
(353,584)|
||**(38,638)**
29,865|
||**£**
£
**49,363**
37,842
**(28,319)**
(12,120)|
||**21,044**
25,722
**(1,665)**
(2,048)|
||**19,379**
23,674|
||**19,379**
23,674|
||**21,720**
25,700
**(2,340)**
(2,025)|
||**19,380**
23,675|
|||
-35-
**ST JOHN’S HOSPICE NORTH LANCASHIRE AND SOUTH LAKES**
## **NOTES TO THE ACCOUNTS (CONTINUED)**
## **FOR THE YEAR ENDED 31 MARCH 2023**
## **8 Income from subsidiaries trading activities (continued)**
|**St John's Hospice Shops Catering (Company No. 10911525)**
**Turnover**
Cost of sales
**Gross profit/(loss)**
Administration costs
Other operating income
**Operating profit/(loss)**
**Profit/(loss) before charitable donation**
**Assets**
**Liabilities**
**Share capital and reserves**|**2023**
2022
**£**
£
**149,863**
18,401
**(125,324)**
(25,512)|
|---|---|
||**24,539**
(7,111)
**(8,023)**
(4,772)
**1,022**
5,093|
||**17,538**
(6,790)|
||**17,538**
(6,790)|
||**190,311**
32,749
**(184,854)**
(44,830)|
||**5,457**
(12,081)|
|||
The results presented above represent the results for the wholly owned subsidiaries for the year to 31 March 2023.
-36-
**ST JOHN’S HOSPICE NORTH LANCASHIRE AND SOUTH LAKES**
## **NOTES TO THE ACCOUNTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023**
## **9 Expenditure on charitable activities**
|**Activity**
Staffing costs
Non salary costs of employment
Medical supplies, equipment and services costs
Food and nutrition
Transport
Premises
Depreciation
Profit on disposal of fixed assets
Utilities
Management and professional costs
Admin and support costs
Education costs
Audit fees|**Provision of**
**Hospice**
**Total**
Total
**Services**
**2023**
2022
**£**
**£**
£
4,004,546
**4,004,546**
3,630,805
44,750
**44,750**
49,236
192,114
**192,114**
175,893
98,752
**98,752**
24,600
13,887
**13,887**
14,935
78,251
**78,251**
78,068
98,362
**98,362**
82,149
(4,000)
**(4,000)**
-
139,393
**139,393**
70,471
27,351
**27,351**
53,972
103,061
**103,061**
141,273
25,279
**25,279**
27,655
16,385
**16,385**
10,470|
|---|---|
||4,838,131
**4,838,131**
4,359,527|
|||
Of the above expenditure £102,211 (2022: £1,783,563) is made against restricted income funds. All other expenditure was unrestricted.
## **10 Expenditure on raising funds**
|Staffing costs
Fundraising costs
Lottery costs
Investment manager costs
Shop purchases
Transport
Premises
Depreciation
Utilities
Rent
Professional costs
Admin and support
Other costs|**Total**
Total
**2023**
2022
**£**
£
**891,517**
724,463
**173,479**
117,474
**104,476**
110,110
**19,125**
26,574
**28,319**
12,120
**98,909**
109,238
**12,089**
20,602
**3,563**
3,252
**85,180**
42,578
**142,835**
147,630
**6,180**
17,914
**13,863**
8,379
**93,033**
62,293|
|---|---|
||**1,672,568**
1,402,627|
|||
All expenditure on raising funds was unrestricted in the current and prior year.
-37-
**ST JOHN’S HOSPICE NORTH LANCASHIRE AND SOUTH LAKES**
## **NOTES TO THE ACCOUNTS (CONTINUED)**
## **FOR THE YEAR ENDED 31 MARCH 2023**
|**11**
**Net (income)/expenditure**
**Net income is stated after charging/(crediting):**
Depreciation
Auditor's remuneration
- audit of the financial statements
- other non audit services
**12**
**Analysis of staff costs and the cost of key management personnel**
**Total staff costs were as follows:**
Wages and salaries
Social security costs
Pension costs||
|---|---|
||**2023**
2022
**£**
£
**103,360**
85,401
**9,500**
7,300
**6,050**
3,170|
|||
|||
||**Total**
Total
**2023**
2022
**£**
£
**4,144,966**
3,703,409
**351,954**
299,760
**399,143**
352,099|
||**4,896,063**
4,355,268|
|||
Excluding the costs of staff recharged, the remuneration of employees who received employee benefits more than £60,000 is as follows:
|£70,000 - £80,000
£90,000 - £100,000|**2023**
2022
**No**
No
**-**
1
**1**
1|
|---|---|
|||
The total amount of employee benefits received by key management personnel, as determined by the Charity, is £112,973 (2022: £109,489) during the current period.
-38-
**ST JOHN’S HOSPICE NORTH LANCASHIRE AND SOUTH LAKES**
**NOTES TO THE ACCOUNTS (CONTINUED)**
## **FOR THE YEAR ENDED 31 MARCH 2023**
## **12 Analysis of staff costs and the cost of key management personnel (continued)**
## **Particulars of employees:**
The average number of permanent employees paid directly by the Hospice during the year, calculated on the basis of full-time equivalents, was as follows:
|Doctors
Nurse practitioners and nurse management
Inpatient unit
Hospice at home
Day hospice
Family support and spiritual
Complementary therapists
Clinical nurse specialists
Quality and development
Administrative and HR
Domestic and maintenance
Finance
Catering and ward hospitality
Marketing and communication
Fundraising (including Shops)
Physiotherapy and occupational therapy
Volunteers
Lottery
Governance
IT|**2023**
2022
**No**
No
**3**
5
**1**
2
**31**
30
**20**
27
**2**
-
**4**
4
**1**
1
**7**
5
**-**
2
**14**
10
**6**
8
**2**
3
**9**
7
**2**
3
**32**
30
**1**
2
**1**
1
**1**
1
**2**
-
**3**
-|
|---|---|
||**142**
141|
Total head count staff number for the year was 195 (2022: 208).
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 contributes.
-39-
**ST JOHN’S HOSPICE NORTH LANCASHIRE AND SOUTH LAKES**
## **NOTES TO THE ACCOUNTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023**
## **13 Trustee remuneration and related party transactions**
No remuneration is paid to any Trustees in their capacity as Trustees.
No travel and related expenses were reimbursed to any Trustees during the period. Insurance costs included £5,382 (2022: £3,560) insurance premium paid for Trustees and Officer Insurance.
No trustee of other person related to the Charity had any personal interest in any contract of transaction entered into by the Charity during the period. No material donations were made by Trustees to the Charity.
There was no ultimate controlling party during the current or prior period.
## **14 Taxation**
St John’s Hospice North Lancashire and South Lakes is a registered charity, number 1157030. All the Charity’s income is applied to its charitable objectives and the Charity is therefore exempt under current legislation from most forms of taxation. Value added tax on expenditure that cannot be recovered is included in the cost of the expenditure on which it is charged.
## **15 Tangible fixed assets**
|**Group**
**Cost**
At 1 April 2022
Additions
Disposals
Transfers
**At 31 March 2023**
**Depreciation**
At 1 April 2022
Charge for the year
Eliminated on disposals
**At 31 March 2023**
**Net book value**
**At 31 March 2023**
At 1 April 2022|**Land and Assets under**
**Motor**
**Fixtures &**
**Buildings Construction**
**Vehicles Equipment**
**Totals**
**£**
**£**
**£**
**£**
**£**
5,264,665
1,016,017
117,944
782,805
7,181,431
96,000
-
18,940
50,225
165,165
-
-
(18,420)
-
(18,420)
1,016,017
(1,016,017)
-
-
-|
|---|---|
||**5,360,665**
-
**118,464**
**833,030**
**7,328,176**|
||1,223,451
-
94,318
734,286
2,052,055
65,058
-
13,135
25,167
103,360
-
-
(18,420)
-
(18,420)|
||**1,288,509**
**-**
**89,033**
**759,453**
**2,136,995**|
||**4,072,156**
**-**
**29,431**
**73,577**
**5,191,181**|
||4,041,214
1,016,017
23,626
48,519
5,129,376|
|||
-40-
**ST JOHN’S HOSPICE NORTH LANCASHIRE AND SOUTH LAKES**
## **NOTES TO THE ACCOUNTS (CONTINUED)**
## **FOR THE YEAR ENDED 31 MARCH 2023**
## **15 Tangible fixed assets (continued)**
|**Charity**
**Land and Assets under**
**Motor**
**Fixtures &**
**Buildings Construction**
**Vehicles Equipment**
**Totals**
**£**
**£**
**£**
**£**
**£**
**Cost**
At 1 April 2022
5,264,665
1,016,017
83,394
749,880
7,113,956
Additions
81,648
-
18,940
37,735
138,323
Disposals
-
-
(18,420)
-
(18,420)
Transfers
1,016,017
(1,016,017)
-
-
-
**At 31 March 2023**
**6,362,330**
**-**
**83,914**
**787,615**
**7,233,859**
**Depreciation**
At 1 April 2022
1,223,451
-
59,768
707,571
1,990,790
Charge for the year
63,623
-
13,135
21,604
98,362
Eliminated on disposals
-
-
(18,420)
-
(18,420)
**At 31 March 2023**
**1,287,074**
**-**
**54,483**
**729,175**
**2,070,732**
**Net book value**
**At 31 March 2023**
**5,075,256**
**-**
**29,431**
**58,440**
**5,163,127**
At 1 April 2022
4,041,214
1,016,017
23,626
42,309
5,123,166
**16**
**Fixed asset investments**
**Group**
**2023**
2022
**£**
£
**Valuation**
Balance brought forward
**4,347,152**
4,096,242
Acquisitions at cost
**431,271**
716,359
Receipts for sale of investments
**(429,090)**
(646,411)
Realised (losses)/gains on sale of investments
**(71,687)**
84,860
Unrealised (losses)/gains on investments
**(210,088)**
96,102
**Total investments**
**4,067,558**
4,347,152
Total investments comprise the following type of investments:
UK listed equities and fixed interest securities
**2,083,369**
2,167,675
Overseas listed equities and fixed interest securities
**1,453,059**
1,544,737
COIF property fund and other property investments
**531,130**
634,740
**4,067,558**
4,347,152|**Land and Assets under**
**Motor**
**Fixtures &**
**Buildings Construction**
**Vehicles Equipment**
**Totals**
**£**
**£**
**£**
**£**
**£**
5,264,665
1,016,017
83,394
749,880
7,113,956
81,648
-
18,940
37,735
138,323
-
-
(18,420)
-
(18,420)
1,016,017
(1,016,017)
-
-
-|**Land and Assets under**
**Motor**
**Fixtures &**
**Buildings Construction**
**Vehicles Equipment**
**Totals**
**£**
**£**
**£**
**£**
**£**
5,264,665
1,016,017
83,394
749,880
7,113,956
81,648
-
18,940
37,735
138,323
-
-
(18,420)
-
(18,420)
1,016,017
(1,016,017)
-
-
-|
|---|---|---|
||**6,362,330**
**-**
**83,914**
**787,615**
**7,233,859**||
||1,223,451
-
59,768
707,571
1,990,790
63,623
-
13,135
21,604
98,362
-
-
(18,420)
-
(18,420)||
||**1,287,074**
**-**
**54,483**|
**729,175**
**2,070,732**|
||**5,075,256**
**-**
**29,431**|
**58,440**
**5,163,127**|
||4,041,214
1,016,017
23,626|
42,309
5,123,166|
||||
||||
|||**2023**
2022
**£**
£
**4,347,152**
4,096,242|
|||**431,271**
716,359|
|||**(429,090)**
(646,411)
**(71,687)**
84,860
**(210,088)**
96,102|
|||**4,067,558**
4,347,152|
|||**2,083,369**
2,167,675
**1,453,059**
1,544,737
**531,130**
634,740|
|||**4,067,558**
4,347,152|
||||
-41-
**ST JOHN’S HOSPICE NORTH LANCASHIRE AND SOUTH LAKES**
## **NOTES TO THE ACCOUNTS (CONTINUED)**
## **FOR THE YEAR ENDED 31 MARCH 2023**
|**16**
**Fixed asset investments (continued)**
**Charity**
**Investment in subsidiary undertakings**
2 shares in St John's Hospice Shops Limited
1 share in St John's Hospice Lancaster Limited
1 share in St John's Hospice Catering Limited
**Other investments at Valuation**
Balance brought forward
Acquisitions at cost
Receipts for sale of investments
Realised gains on sale of investments
Unrealised gains/(losses) on investments
**Total investments**
Total investments comprise the following type of investments:
UK listed equities and fixed interest securities
Overseas listed equities and fixed interest securities
COIF property fund and other property investments
Investments in subsidiary undertakings||
|---|---|
||**2023**
2022
**£**
£
**70,001**
70,001
**1**
1
**1**
1|
||**70,003**
70,003
**4,347,152**
4,096,242
**431,271**
716,359
**(429,090)**
(646,411)
**(71,687)**
84,860
**(210,088)**
96,102|
||**4,067,558**
4,347,152|
||**4,137,561**
4,417,155|
|||
|||
||**2,083,369**
2,170,207
**1,453,059**
1,544,737
**531,130**
634,740
**70,003**
70,003|
||**4,137,561**
4,419,687|
|||
St John’s Hospice Shops Limited, St John’s Hospice Lancaster Limited and St John’s Hospice Catering Limited are all wholly owned subsidiaries of the Charity. The principal activities of the former two companies are the operation of retail charity shops selling donated and new goods respectively, with the latter being the operation of a café and event catering. All exist to further the activities of St John’s Hospice North Lancashire and South Lakes.
## **17 Debtors**
|**Group**
Management debtors
Prepayments
VAT recoverable|**2023**
2022
**£**
£
**196,632**
1,763,624
**32,809**
93,442
**48,755**
43,643|
|---|---|
||**278,196**
1,900,709|
|||
-42-
**ST JOHN’S HOSPICE NORTH LANCASHIRE AND SOUTH LAKES**
## **NOTES TO THE ACCOUNTS (CONTINUED)**
## **FOR THE YEAR ENDED 31 MARCH 2023**
|**17**
**Debtors (continued)**
**Charity**
Management debtors
Prepayments
Amounts due from subsidiary undertakings
VAT recoverable
**18**
**Creditors: amounts falling due within one year**
**Group**
Management creditors
Taxation and social security
Accruals
Lottery members
Other creditors
Deferred income (note 19)
**Charity**
Management creditors
Taxation and social security
Accruals
Amounts due to subsidiary undertakings
Lottery members
Other creditors
Deferred income (note 19)||
|---|---|
||**2023**
2022
**£**
£
**196,632**
1,763,624
**4,935**
56,737|
||**739,581**
353,862|
||**24,839**
22,671|
||**965,987**
2,196,894|
|||
|||
||**2023**
2022
**£**
£
**37,572**
35,431
**86,793**
79,408
**121,027**
133,510
**30,814**
35,687
**65,952**
74,047
**24,192**
100,673|
||**366,350**
458,756|
||**2023**
2022
**£**
£
**37,474**
35,431
**72,858**
70,837
**81,500**
108,764
**11,565**
18,373
**30,814**
35,687
**61,656**
60,937
**24,192**
100,673|
||**320,059**
430,702|
|||
-43-
**ST JOHN’S HOSPICE NORTH LANCASHIRE AND SOUTH LAKES**
## **NOTES TO THE ACCOUNTS (CONTINUED)**
## **FOR THE YEAR ENDED 31 MARCH 2022**
## **19 Deferred income**
|**Deferred income**||
|---|---|
|Balance brought forward
Event and course fees received in advance
Grants received in advance
Release of deferred income|**2023**
2022
**£**
£
**100,673**
79,486
**13,242**
98,510
**10,950**
-
**(100,673)**
(77,323)|
||**24,192**
100,673|
|||
## **20 Commitments under operating leases**
|Within 1 year
Within 2 to 5 years
After more than 5 years|**2023**
**2023**
2022
2022
**Land and**
**Other**
Land and
Other
**Buildings**
Buildings
**£**
**£**
£
£
80,021
5,402
76,274
5,402
172,813
5,119
22,625
10,521
-
-
-
-|
|---|---|
||252,834
10,521
98,899
15,923|
|||
## **21 Capital commitments**
There were a total of £39,748 (2022: £39,748) capital commitments at the balance sheet date.
## **22 Pension schemes**
The Hospice operates two pension schemes:
- a) A defined contribution group personal pension scheme. Contributions to the scheme are charged in the Statement of Financial Activities when payable.
- b) For certain eligible employees a defined benefit pension scheme. The assets of the scheme are held separately by the National Health Service Superannuation Scheme. Contributions are charged in the Statement of Financial Activities as they become payable. This pension scheme does not have a real pension fund but, as a statutory scheme, benefits are fully guaranteed by the Government. Contributions from both members and employers are paid to the Exchequer which meets the cost of increasing benefits each year by the rate of inflation. This extra cost is not met by contributions from scheme members and employers. As a result of the nature of the pension scheme there are no separately identifiable assets and liabilities which can be identified as relating to St John’s Hospice, therefore as permitted by FRS 102, the scheme has been accounted for as a defined contribution scheme.
-44-
**ST JOHN’S HOSPICE NORTH LANCASHIRE AND SOUTH LAKES**
## **NOTES TO THE ACCOUNTS (CONTINUED)**
## **FOR THE YEAR ENDED 31 MARCH 2023**
## **23 Analysis of unrestricted funds: current year**
|**Unrestricted funds**
Designated funds
General reserves
**Total funds**|**At 1**
**Other**
**At 31**
**April**
**recognised**
**March**
**2022**
**Income**
**gains**
**Transfers**
**2023**
**£**
**£**
**£**
**£**
**£**
**£**
4,266,000
-
(335,693)
-
1,150,000
5,080,307
10,295,167
6,492,514
(6,072,795)
(281,775)
(449,197)
9,983,914
**Expenditure**|
|---|---|
||**14,561,167**
**6,492,514**
**(6,408,488)**
**(281,775)**
**700,803 15,064,221**|
|||
The Trustees agreed on designated reserves in order to fund a number of items across the Hospice:
- £200,000 to upgrade the premises. The Hospice is now 37 years old and advanced maintenance is required.
- £2,000,000 to replace the roof. The roof is becoming past its useful life and needs a major repair or replacement.
- £51,915 to upgrade IT equipment and progress IT led projects to increase efficiency and productivity across the Hospice.
- £78,392 to invest in our staff in relation to training, CPD, health and wellbeing.
- £100,000 to upgrade our electrics in order to reduce future electricity spend.
- £1,500,000 to use as matched funding when applying for bids in order to develop our Hospice into its 40[th] year and beyond.
- £1,000,000 for a legacies equalisation reserve.
- £150,000 for the main electricity board in the hospice which requires a major upgrade.
## **24 Analysis of unrestricted funds: prior year**
|**Unrestricted funds**
Designated funds
General reserves
**Total funds**|**At 1**
**Other**
**At 31**
**April**
**recognised**
**March**
**2021**
**Income**
**gains**
**Transfers**
**2022**
**£**
**£**
**£**
**£**
**£**
**£**
256,100
-
-
-
4,009,900
4,266,000
12,582,667
5,724,987
(3,978,591)
(57,943)
(3,975,953)
10,295,167
**Expenditure**|
|---|---|
||**12,838,767**
**5,724,987**
**(3,978,591)**
**(57,943)**
**33,947**
**14,561,167**|
|||
-45-
**ST JOHN’S HOSPICE NORTH LANCASHIRE AND SOUTH LAKES**
**NOTES TO THE ACCOUNTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023**
## **24 Analysis of unrestricted funds: prior year (continued)**
At 1 April 2021 the charity had a £256,100 designated fund brought forward (£256,100 carried forward) was the additional funding agreed by the Trustees for the Forget Me Not Centre. This was the difference between the total cost of the build and the generous donation by one of our donors.
In November 2021 the Trustees agreed on designated reserves in order to fund a number of items across the Hospice:
- £200,000 to upgrade the premises. The Hospice is now 36 years old and advanced maintenance is required.
- £2,000,000 to replace the roof. The roof is becoming past its useful life and needs a major repair or replacement.
- £80,000 to upgrade IT equipment and progress IT led projects to increase efficiency and productivity across the Hospice.
- £90,000 to invest in our staff in relation to training, CPD, health and wellbeing.
- £40,000 for additional projects across local hospices in order to streamline services and obtain efficiencies.
- £100,000 to upgrade our electrics in order to reduce future electricity spend.
- £1,500,000 to use as matched funding when applying for bids in order to develop our Hospice into its 40th year and beyond.
## **25 Analysis of restricted funds: current year**
|**Restricted funds**
Fundraising grants
Forget Me Not Centre
Legacies
**Total funds**|**At 1**
**At 31**
**April**
**March**
**2022**
**Income Expenditure**
**Transfers**
**2023**
**£**
**£**
**£**
**£**
**£**
5,281
146,570
(89,711)
(62,140)
-
678,411
-
-
(638,663)
39,748
-
12,500
(12,500)
-
-|
|---|---|
||**683,692**
**159,070**
**(102,211)**
**(700,803)**
**39,748**|
|||
The restricted fundraising grants received were for internal furniture, TV equipment, children’s books and external garden furniture and plants.
The Forget Me Not Centre balance of £39,748 was the balance of our generous donor who paid for the majority of the capital build expenditure. The funding was split over 2020/21 and 2021/22 with the majority being in 2021/22. Amounts were transferred to unrestricted reserves in the year as a result of the build being completed, with the remaining funds relating to costs withheld until after the year end.
The legacy received was that for the funding of items of necessity for direct patient care.
-46-
**ST JOHN’S HOSPICE NORTH LANCASHIRE AND SOUTH LAKES**
## **NOTES TO THE ACCOUNTS (CONTINUED)**
## **FOR THE YEAR ENDED 31 MARCH 2023**
## **26 Analysis of restricted funds: prior year**
|**Restricted funds**
Fundraising grants
Forget Me Not Centre
NHSE funding
**Total funds**|**At 1**
**At 31**
**April**
**March**
**2021**
**Income**
**Expenditure**
**Transfers**
**2022**
**£**
**£**
**£**
**£**
**£**
-
56,686
(17,458)
(33,947)
5,281
-
678,411
-
-
678,411
-
1,766,105
(1,766,105)
-
-|
|---|---|
||**-**
**2,501,202**
**(1,783,563)**
**(33,947)**
**683,692**|
|||
The NHSE funding was received by the Hospice from December 2021 to March 2022. This was funding due to the Omicron variant and was to ensure patients were being supported either in our inpatient unit or through our community services team, instead of being admitted to hospital.
## **27 Analysis of net assets between funds: current year**
|**Group**
**Unrestricted funds**
Designated funds
General funds
**Restricted funds**
Fundraising grants
Forget me not centre
**Total funds**
**Charity**
**Unrestricted funds**
Designated funds
General funds
**Restricted funds**
Fundraising grants
Forget me not centre
**Total funds**|**Tangible**
**& intangible**
**Fixed asset**
**Net current**
**Long term**
**fixed assets**
**investments**
**assets**
**liabilities**
**Total**
**£**
**£**
**£**
**£**
**£**
-
-
5,080,307
-
5,080,307
5,191,181
4,067,558
725,175
-
9,983,914
-
-
-
-
-
-
-
39,748
-
39,748|
|---|---|
||**5,191,181**
**4,067,558**
**5,845,230**
**-**
**15,103,969**|
||**Tangible**
**Fixed asset**
**Net current**
**Long term**
**fixed assets**
**investments**
**assets**
**liabilities**
**Total**
**£**
**£**
**£**
**£**
**£**
-
-
5,080,307
-
5,080,307
5,163,127
4,137,561
767,030
-
10,067,718
-
-
-
-
-
-
-
39,748
-
39,748|
||**5,163,127**
**4,137,561**
**5,887,085**
**-**
**15,187,773**|
|||
-47-
**ST JOHN’S HOSPICE NORTH LANCASHIRE AND SOUTH LAKES**
## **NOTES TO THE ACCOUNTS (CONTINUED)**
## **FOR THE YEAR ENDED 31 MARCH 2023**
## **28 Analysis of net assets between funds: prior year**
|**Group**
**Unrestricted funds**
Designated funds
General funds
**Restricted funds**
Fundraising grants
Forget me not centre
**Total funds**
**Charity**
**Unrestricted funds**
Designated funds
General funds
**Restricted funds**
Fundraising grants
Forget me not centre
**Total funds**|**Tangible**
**& intangible**
**Fixed asset**
**Net current**
**Long term**
**fixed assets**
**investments**
**assets**
**liabilities**
**Total**
**£**
**£**
**£**
**£**
**£**
-
-
4,266,000
-
4,266,000
4,450,965
4,347,152
1,497,050
-
10,295,167
-
-
5,281
-
5,281
678,411
-
-
-
678,411|
|---|---|
||**5,129,376**
**4,347,152**
**5,768,331**
**-**
**15,244,859**|
||**Tangible**
**Fixed asset**
**Net current**
**Long term**
**fixed assets**
**investments**
**assets**
**liabilities**
**Total**
**£**
**£**
**£**
**£**
**£**
-
-
4,266,000
-
4,266,000
4,444,755
4,417,155
1,461,801
-
10,323,711
-
-
5,281
-
5,281
678,411
-
-
-
678,411|
||**5,123,166**
**4,417,155**
**5,733,082**
**-**
**15,273,403**|
|||
-48-