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2021-03-31-accounts

Phyllis Tuckwell Memorial Hospice Limited

Report and Financial Statements For the year ended 31 March 2021

Company number 1063033 - Charity number 264501

Reference and administrative details 3
Trustees' annual report 4
Section 1: Introduction & 4
Message from the Chair
Section 2: Objectives and Activities 5
Section 3: Strategic Report 6
Section 4: Our Performance 7
Section 5: Financial Review 19
Section 6: Plans for the Future 23
Section 7: Leadership & How We Work 24
Section 8: Statement of Responsibilities 30
of the Trustees
Independent auditor's report 32
Statement of fnancial activities 35
(incorporating an income and expenditure
account)
Balance sheet 36
Consolidated statement of cash fows 37
Notes to the fnancial statements 38

Phyllis Tuckwell Memorial Hospice Ltd Annual Report and Financial Statements 2021

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Company number 1063033 Charity number 264501 Country of registration England & Wales Country of incorporation United Kingdom Registered office and Waverley Lane, operational address FARNHAM, Surrey GU9 8BL

Country of registration
Country of incorporation
Registered offce and
operational address		 England & Wales
United Kingdom
Waverley Lane,
FARNHAM,
Surrey GU9 8BL		 England & Wales
United Kingdom
Waverley Lane,
FARNHAM,
Surrey GU9 8BL
Status The organisation is a charitable company limited by guarantee, incorporated on
27 July 1972 and registered as a charity on 8 September 1972. The organisation
operates under the name Phyllis Tuckwell.
Trustees Trustees, who are also directors under company law, who served during the year
and up to the date of the signing of this report, were as follows:
Dr David Eyre-Brook Chair (from November 2020)
Michael Maher Chair (until November 2020)
Veronica Carter Vice Chair
Rosy Anand
Helen Atkinson (from November 2020)
Professor Michael Bailey
Helen Franklin
Alison Huggett
Richard Hunt
Dr Robert Laing
Ken Ratcliff
Ian Trotter (until November 2020)
Elizabeth Wells (from November 2020)
Anne Whelan
President Chris Tuckwell
Key management Sarah Church Chief Executive
personnel Dr Cate Seton-Jones Medical Director
Jayne Holland Director of Patient Services
Peter Foxton Director of Income Generation
Mark Beale Director of Finance & Business Development
Jaci Curtis-Donnelly Director of People
Paul Batten Director of Estates & IT
Tony Carpenter Director of Marketing & Communications
Bankers Lloyds Bank plc Santander
147, High Street, Bridle Road
GUILDFORD, Surrey BOOTLE, Merseyside
GU1 3AG L30 4GB
Investment managers Investec Wealth & Investment Ltd
2 Gresham Street
LONDON, EC2V 7QN
Auditor Sayer Vincent LLP
Chartered Accountants and Statutory Auditor
Invicta House, 108-114 Golden Lane
LONDON, EC1Y 0TL

Phyllis Tuckwell Memorial Hospice Ltd Annual Report and Financial Statements 2021

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This has been an exceptional year, and I am so proud of the way the Phyllis Tuckwell team have responded to the pandemic and found new ways to help people approaching the end of their lives.

The pandemic reminded us yet again of the importance of providing compassionate, dignified care that is focused on the individual and their personal circumstances. Our core purpose has never been more important, and we have been determined to continue providing high quality care to people who need us. We helped over 3,000 people last year, more than in 2019/20, and our data shows this took a lot more effort (with many more contacts per patient than normal, often by phone because of the challenges of caring during Covid).

The safety and quality of care provided has remained our priority throughout, and this has been thanks to the resilience, compassion, and hard work of our wonderful team. They have had to work through periods of huge uncertainty, learn how to work safely with PPE, and how to adapt the way we care for people. All this whilst juggling the day job with constant pressures, including home schooling, and caring responsibilities. Phyllis Tuckwell has rightly put a great emphasis on well-being and looking after our staff so that they can look after others. We increased clinical supervision so that Nurses, Health Care Assistants (HCAs) and our Doctors could talk about their experiences, worked hard to encourage people to take their annual leave wherever possible, and made sure all clinical staff were offered vaccination as quickly as possible.

The team has taken the experience of being forced to work differently and turned it into an opportunity where possible. In just a few weeks we went from being an office-based place of work, to one where we had a mixture of people working across their homes, the Beacon Centre and the Hospice. We have found new ways to raise money through ‘virtual’ events, and rapidly improved our online retail offering. We have found ways to redeploy people which has helped to give people the experience of working in different parts of the

organisation. We have learned a great deal about how to use our physical spaces in a way that reduces the risk of infection and has helped us shape our understanding of what we want our working spaces to be like. We will incorporate this learning into our plans for the future.

Financially, it has been a challenging year for charitable income generation. We had to cancel long-planned events and our shops were forced to shut three times, which meant we lost more than £1.6m of expected income. However, the impact of this has been significantly offset by the astonishing generosity of our local community and charitable Trusts. We are hugely grateful for this and for the much-needed injection of additional Government money for Hospices. This support has made an enormous difference to us this year as demonstrated by our accounts, but it is already clear that it will take several years for us to build back our events and retail income. Agreeing sustainable levels of funding from the NHS is a priority for the year to come.

I would like to thank Michael Maher for his strong chairmanship of the Board until November last year and his dedicated service to Phyllis Tuckwell. Many thanks also to Ian Trotter who, alongside Michael, retired from the Board late last year. We also welcomed a new Chief Executive at the start of the financial year who, working alongside a very strong senior team, has helped steer the organisation safely through the twists and turns of the pandemic.

Dr David Eyre-Brook Chairman

Phyllis Tuckwell Memorial Hospice Ltd Annual Report and Financial Statements 2021

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Mission, Vision and 5-Year Strategy

Mission:

To care compassionately for adults living with an advanced or terminal illness, and those closest to them, so that they have the best possible quality of life and the patients’ final days are peaceful...because every day is precious.

Vision:

Easy access to compassionate supportive and end of life care for patients and families in a place of their choice.

Strategy:

The pandemic has shown starkly how much need there is for high quality, compassionate care for people as they approach the end of their lives. We know that more people will need us in the years ahead.

By 2030, one in five people in the UK (21.8%) will be aged 65 or over, 6.8% will be aged 75+ and 3.2% will be aged 85+.

Our 5-year strategy runs from 2019–2024. We reviewed it late last year to see if it needed to be adjusted because of the pandemic or reforms to the NHS. We concluded that the objectives are as true today as they were in 2019, but we do want to focus more on digital projects, making sure we are inclusive, and that we help as many people in our community as possible. Our ambition fits well with the new national priorities for palliative and end of life care, as well as those from the two Integrated Care Systems (ICS) and Integrated Care Partnerships (ICP) we work across.

Our strategic goals are:

Public benefit:

Phyllis Tuckwell exists to provide direct specialist palliative care, as well as Education, Training and advice to support delivery of palliative care by others. All our services are delivered free of charge to patients and their families. Patients are referred by GPs, Community Nurses, Hospital teams or other health and social care professionals, and are considered based on clinical need alone.

The Trustees confirm that they have referred to the Charity Commission’s general guidance on public benefit when reviewing the charity’s aims and objectives and business planning, and are satisfied that public benefit is at the heart of everything we do.

Phyllis Tuckwell Memorial Hospice Ltd Annual Report and Financial Statements 2021

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Different World, Same Care: How we delivered in 2020.

We provided high quality palliative and End of Life care services to patients, their families and carers.

We helped as many people as possible through education and training, as well as giving advice to other health professionals.

We generated sufficient funds to enable us to deliver our clinical services and demonstrated we are making good use of the money donated to us.

We demonstrated organisational efficiency and effectiveness in the way we responded to the pandemic.

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The Story of a Remarkable Year: compassionate care during the pandemic.

We faced huge uncertainty as we worked out how to care for people in different ways during the pandemic. Throughout we stayed true to our core purpose and mission and asked ourselves ‘ what does this patient need, and how can we care for them? ’

We played our part in helping to relieve pressure from the NHS during the peaks of activity, keeping over 1,000 people out of hospitals by providing high quality care in homes, and worked closely with District Nursing and GP teams.

It has been difficult at times, and there has been anxiety about the dangers of Covid for our patients, their families, our staff and their families. The values and quality of our people and their determination to do the very best we can has shone through. This was captured by our approach of ‘Different World, Same Care’.

The next section describes some of our achievements this year.

You are all a true inspiration and we cannot thank you enough. We hope you all keep well as your care and compassion are a beacon of hope for our future in these difficult times.

Phyllis Tuckwell Memorial Hospice Ltd Annual Report and Financial Statements 2021

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The figures below show how many people and their families we cared for over the period of the pandemic and in comparison with the previous year.

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Year on Year
Phyllis Tuckwell 2019/20 2020/21
Change
Patient referrals 1,564 1,483 -5.2%
Patients supported 2,045 2,068 1.1%
Family members/Carers supported 784 1,046 33.4%
Total number of people supported 2,829 3,144 11.1%
% non-cancer referrals 37.0 32.4 -12.4%
% of deceased patients with a recorded
63.4 66.4 4.7%
preferred place of death
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Overall we are very pleased that we were able to help as many people as we did in the previous year despite Covid, and substantially more family members and carers than normal. You can also see that the number of patient referrals is down slightly. Perhaps this is because people stayed away from the hospitals & GPs, especially during lockdown periods, which led to a slight reduction in referrals.

We saw a reduction in non-cancer referrals and want to see this figure increase this year as normal NHS services restart. It is good to see an increase in the proportion of people with a recorded preference for place of death. This indicates good practice, because it means we know people's wishes for end of life, and we will work to increase this further.

Phyllis Tuckwell Memorial Hospice Ltd Annual Report and Financial Statements 2021

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Our In-Patient Unit (IPU) at the Hospice is where we care for people who have complex needs and require constant supervision and care.

We are pleased we cared for nearly as many patients as the previous year, given people’s fears about coming to a health care setting and the constraints Covid gave on visiting hours. An increase in patients recognised as dying and on the Last Days of Life (LDL) care plan, meant that families were able to say their timely and important goodbyes.

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Year on
In-Patient Unit 2019/20 2020/21 Year
Change
Total admissions 272 262 -3.7%
% patients going home 27% 25% -7.4%
% bed occupancy 91% 85% -6.6%
% deaths on LDL 77% 82% 6.0%
IPU admission
2
waiting time (days)
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The IPU looked and felt very different over the last year, however, we were determined to provide the same compassionate and professional care.

In March 2020 we braced ourselves for an influx of unwell patients, and staff were deployed from other areas of Phyllis Tuckwell to make sure we were ready. We opened up our full 18 beds. Camaraderie on the unit was high, with staff pleased to be out of the house and at work, and doing something to help.

We know it was tough for our patients.

Visiting was limited to just 2 hours a day at the height of the pandemic, and only the nearest and dearest could visit. The ward team made daily phone calls to worried families, who struggled to wait until the 6pm visiting hour for news about how things were going. We also facilitated calls on FaceTime. One of the hardest parts of working through the pandemic, was not being able to get to know patients’ families as well as we normally would. Something that is so important to providing effective palliative care.

Infection control measures were (and remain) stringent, with all staff wearing face masks and the clinical team with additional aprons, gloves and eye protection. We learned to smile with our eyes!

One end of the ward was designated to care for those who developed Covid symptoms and we worked hard to maintain the highest level of infection control measures. We converted a small room into a PPE store/dressing room, and used the space for donning our gloves, masks and aprons. The room remains in place in case of future outbreaks.

As part of our infection control procedures, we closed the four-bed bays and converted them to single rooms.

This means that we are now operating 12 beds, so that each patient has their own space, and we have significantly extended visiting hours.

Phyllis Tuckwell Memorial Hospice Ltd Annual Report and Financial Statements 2021

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Our Community teams support patients in their own homes and care homes during their last few days, weeks or months of life.

They work alongside, families, carers and community partners. The aim is to tailor compassionate and timely support, and join up with GPs and District Nurses so the patient, family, and carers’ needs are co-ordinated and it feels seamless. This joined-up care includes skilled communication, assessment, symptom control, advance care planning, nursing and personal care and care after death. The team assist with emotional, spiritual, financial and bereavement support, facilitate access to specialist equipment and provide information about the dying process.

We are so proud of the care we have provided to people so they can remain in their own homes (whether private homes or Care Homes). This equates to over 1,000 people dying at home who might otherwise have died in hospital. We believe this greatly improves the experience for the person and their family, as well as reducing pressure on the NHS.

Care at Home 2019/20 2020/21 Year on Year
Change
Total referrals 1,302 1,220 -6.3%
Patients supported 1,950 2,013 3.2%
% home deaths 63.5% 69.7% 9.7%
% non-cancer referrals 34.5% 28.9% -16.4%

Phyllis Tuckwell Memorial Hospice Ltd Annual Report and Financial Statements 2021

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“
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Thank you to the Care at Home Team for their exceptional care that Dad and my family received in his last days at home. The support was so efficient and second to none; … the communication with the District Nursing team was amazing.

The pandemic saw a 40% increase in deaths at home nationally, and all services were stretched. Although home visits were difficult due to the restrictions imposed by the pandemic, it was important to maintain faceto-face contact as we realised that patients often had heightened concerns related to isolation. The team rapidly adapted working practices, including maintaining very high standards of infection prevention and control, communicating sensitively despite masks and eye protection.

We increased the support from Hospice Care at Home, our last stage of life nursing team, by 26% in the last year.

During the height of the pandemic we extended our Advice & Referral Team hours to 10pm, and we extended our weekend visits for emergency cases too.

Families can feel most alone at night. Symptoms can be overwhelming and knowing how to access the help you need can be confusing.

We added a Registered Nurse and another Health Care Assistant (HCA) in addition to our planned overnight care service. This has helped us provide 972 night visits in the last year (an increase of more than 200%) and has been very positively received.

Pre-existing systems for communication and partnership working with our community colleagues have been strengthened across the area and in North East Hampshire, we have joined a daily video call with other teams to co-ordinate care of those that are at the end of life in that locality. We are so proud of the care we have been able to provide, and grateful for the positive feedback we have received.

We also appreciate that it has taken a lot more effort this year to provide care, as you can see from the data below. Whilst the number of face-to-face patient contacts went down by about 16%, the number of non-face-to-face contacts (e.g. phone calls) went up by 38% for patients and an astonishing 221% for families.

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Year on year
Care at Home 2019/20 2020/21
change
Patient face-to-face contact 14,634 12,273 -16.1%
Patient non-face-to-face contact 46,732 64,481 38.0%
Family Member face-to-face contact 251 458 82.5%
Family Member non-face-to-face contact 930 2,991 221.6%
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Our Living Well service cares for people coping with advanced illness, and provides advice on nutrition, exercise and wellbeing and, in usual years, runs therapeutic groups to help keep people mobile and independent.

This service played an important part in our pandemic response. Whilst our Day Hospice remained closed, telephone support and virtual groups provided a muchneeded connection for patients back to Phyllis Tuckwell.

It allowed staff to review how patients were faring from their illness and from isolation. All of our patients were asked to shield as all are vulnerable.

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Year on Year
Living Well at Home 2019/20 2020/21
Change
Total referrals 424 417 -1.7%
Patients supported 787 699 -11.2%
Family members/Carers supported 591 240 -59.4%
% non-cancer referrals 42.7% 40.1% -6.2%
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Phyllis Tuckwell Memorial Hospice Ltd Annual Report and Financial Statements 2021

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We do not know how we would
have all managed without your
kindness and gentle guidance.
“
”
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Face-to-face groups had to be suspended in March 2020, and we adapted to help meet patient and family needs in new ways. Some nurses and HCAs moved to support community and the In-Patient Unit. Our complementary therapists and pastoral care colleagues helped patients to use video technology to communicate with loved ones. We learned a lot from working in different areas, returning with fresh ideas, better understanding of how to use our electronic documentation system (EMIS) and with greater confidence in using technology.

The Living Well service continued to support 250 patients and families at any one time. Daily meetings were introduced to prioritise and coordinate care. Many

patients received care remotely with regular phone calls, either pre-planned or in response to escalating needs. Patients were offered support to maintain quality of life, plan for the future, learn to manage symptoms and to adjust to this phase of their lives.

New ways to connect with patients included delivering equipment to doorsteps and following up with video advice, introducing a newsletter and delivering 230 ‘goodie bags’ containing resources and activities at Christmas. Patients were also offered a face-toface home or outpatient visit from a member of our multidisciplinary team, as needed.

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Year on Year
Living Well at Home 2019/20 2020/21
Change
Patient face-to-face contacts 6,918 445 -93.6%
Patient non-face-to-face contacts 3,202 6,774 111.6%
Family Member face-to-face contacts 2,475 124 -95.0%
Family Member non-face-to-face contacts 976 681 -30.2%
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The data here shows that, as with other services, we significantly increased our non-face-to-face contacts to make sure that we were still keeping in touch and supporting people.

We piloted online groups and established them as an opportunity for peer support and to ensure multi-professional input. These will continue alongside site-based groups, and focus on a range of activities from Tai Chi and relaxation, to creative projects and a support group for carers.

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The Patient and Family Support team works to help patients and families with every aspect of their lives: body, mind and spirit.

Our services range from practical issues like accessing care and getting all relevant benefits, to considering how to support the psychological and spiritual needs of the patient and their family. The team work together to provide a joined-up service that meets the changing needs of patients, and helps families come to terms with what is happening.

One of our priorities is to keep vulnerable patients safe from harm, and this has been a challenge this last year with the restrictions and minimum face-to-face contact.

We have worked creatively to ensure we understand the issues patients and carers are facing, so we offer the right support, safely. This support could be from a Social Worker, Counsellor, Psychologist or Chaplain, as well as all of the other clinical professionals the team works with.

After the patient has died, we continue to support families.

This has evolved throughout the pandemic with the addition of a post-bereavement welfare call, remote support groups, services of remembrance and increased online resources, leaving us with a responsive service that meets the needs of those bereaved.

I am hugely grateful for the support that has been given to me at this difficult time… and thank you for the bereavement counselling sessions.

The support the Phyllis Tuckwell clinical team provides to families and carers continues to be a priority, as we support more patients through our Care at Home and Living Well services.

The total number of carers and family members supported through the year increased by 33.4% to over 1,000 individuals. We undertook 1,007 face-toface contacts and 4,749 non-face-to-face contacts, as counselling and telephone support was increased during the Covid crisis.

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We want to care for as many people as we can, so that everyone gets the best possible palliative and end of life care.

Sadly, there is a limit to how many people we can care for directly. Therefore, we also support the wider team of professionals working in our area, so that everyone gets the best possible palliative and end of life care.

We do this in several ways, for example, through giving best-practice advice about how to care for someone not on our caseload, our education programme, and joint working with Care Homes.

During the year, Phyllis Tuckwell also provided clinical bereavement support sessions to care homes, for their staff coping with the challenges of caring during the Covid pandemic. This improved working relationships and the expertise of our counselling team was appreciated by staff from 11 Care Homes.

Broader advice

We estimate that in addition to the patients referred to us for direct care, the Phyllis Tuckwell Advice & Referral Team offers telephone support and advice to around 200 other patients and their healthcare professionals each year.

Education

We have a highly skilled workforce and a comprehensive in-house education programme to ensure our palliative and end of life care skills are kept up-to-date. We also want people in other organisations working with people at the end of their lives to have the opportunity to develop their skills. We deliver this through our external education programme. The education team has been extremely busy and, despite the challenges of the pandemic, we increased the number of training sessions by 65%. All training this year was provided free of charge.

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Internal Staff External Professional Year on year change
Education Total Attendances
Attendances Attendances (Total)
2018-19 257 310 567 -
2019-20 584 445 1029 81.5%
2020-21 1051 645 1696 64.8%
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We made supporting Care Homes a priority, because of the specific challenges they faced with the pandemic. 73% (472) of the external training attendances, were Registered Nurses and Health Care Assistants within Care Homes.

Key topics were syringe driver management, verification of expected death, breathlessness management, advance care planning, symptom management, assessment of pain, care in the last weeks of life, care of the person with agitation, and care of patients with dementia.

Support was provided to sign-off competencies – a successful model implemented by the Care Home clinical leads and our clinical educator. This is an essential part of making sure our education translates into enhanced care for patients.

We worked closely with the Care Home Matrons across our area and with the Quality Lead for Care Homes in Frimley South. We attended the 2 monthly Palliative Care Link meetings at Frimley South – attended by an average of 25 Care Homes. We also worked closely with RSCH Care Home Matrons within Guildford & Waverley.

We organised drop-in half-hour Care Homes sessions, which were attended by Learning Disability home professionals as well as Care Homes’ staff.

As many group training sessions were not possible during the pandemic, training videos and resources were made available on our website, for health and social care colleagues to download, free-of-charge.

Phyllis Tuckwell Memorial Hospice Ltd Annual Report and Financial Statements 2021

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Our wonderful team - staff and volunteers

Our staff have been amazing, resourceful, and resilient. At the start of the year, we quickly found ways for large numbers of people to work from home, whilst making space for social distancing for those that needed to remain on site.

Looking after our team is always a priority and this year it has been essential.

We have been determined to look after staff wellbeing, those working from home, on furlough and coming into the Hospice or Beacon Centre. We have stayed connected, keeping everyone up-to-date, reassured and safe. We were fortunate to secure early vaccines for patient-facing staff and volunteers, and then all staff and volunteers coming into the Hospice.

We have made good use of the virtual resources – holding meetings, conducting training, socials such as coffee mornings and resilience sessions on-line. Individual teams stayed connected with their colleagues, some meetings took

place socially distanced in gardens, and managers were in regular contact with team members working from home or on furlough. Making sure people felt supported, and weren’t isolated was so important.

Staff willingly offered to be redeployed in other departments, helping with cleaning, testing, admin and reception, there has been a real sense of unity and collaboration across the whole organisation.

We were pleased to be able to offer all staff a 1% pay rise for 2021/22. We balanced a really strong desire to say thank you to our teams, with the need to be cautious about the financial situation for the next couple of years. We benchmarked against other Hospices locally and the NHS to make sure we continue to offer attractive overall employment packages.

We were very fortunate to have had a great deal of support from local companies and members of the public to keep our spirits up donating hot lunches and treats.

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Some volunteers remained on-site during the first lockdown, covering roles on reception, ward desk, cleaning patient rooms and tending our garden. Our Home Support volunteers provided virtual support to patients at home, others delivered care packages to patients in the community. Volunteers made scrubs, face coverings, baked cakes for us and collected our PPE. Retail volunteers returned to our shops as soon as we were able to reopen these. Pre-Covid our volunteer numbers were around 800, but regrettably most were required to cease volunteering during the Covid restrictions. More recently, active volunteer numbers have risen from 20 at the start of the pandemic, to 440.

We are immensely grateful to our volunteers, particularly over the past year as, despite the pandemic, volunteers have provided much-needed support and contributed approximately 50,000 hours of their time to the charity.

The Covid pandemic has had a significant effect on the way all our people have worked over the past year. They have been adaptable, flexible and shown great resilience. We are very proud of everyone and the continued dedication to their roles, despite understandable concern for themselves and their families.

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As a Charity our Trustees need to make sure that all our work is focused on achieving our charitable goals.

Our Trustees take this responsibility very seriously, and work to ensure that decisions take the long term consequences into account, along with the interests of our staff and patients alike. They also ensure we are professional in the way we work with suppliers and that our relationship with the NHS is well organised. Maintaining the support of our wider community, protecting our environment and maintaining our reputation for high standards in the way we work are also issues the Board considers on a regular basis.

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The year was a remarkable roller-coaster financially, and we are delighted to have ended in a very strong position.

There was significant disruption within retail, with shops closed for much of the year during periods of lockdown. Most fundraising events had to be cancelled but, when it was possible to operate them, support from the community was outstanding. The fundraising team was particularly creative, holding many events on-line and helping supporters find new ways of raising money in a safe, socially distanced way.

One-off support from the government via Hospice UK and NHS England was indispensable and gave huge confidence to us and to the wider sector. Other government support such as income for furloughed staff during lockdown periods also contributed to our positive financial result, despite the pandemic. We are nonetheless aware that the new financial year is likely to leave us with income still short of that in the years immediately prior to the pandemic.

The annual Light up a Life event which starts the Christmas celebrations for Phyllis Tuckwell was, this year, held outside Guildford Cathedral and streamed online, with the names of remembered loved ones lit-up on the cathedral wall.

The generosity of our local community meant that we had an exceptional year for donations and we are so grateful both for the financial support and for the boost to morale it gave our teams, to know there were people in our community rooting for us.

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an exceptional year for donations and we are so grateful
both for the financial support and for the boost to morale
it gave our teams, to know there were people in our
community rooting for us.
HMG Covid Funding
Investments
2%
3%
Income Lottery Income NHS Income
8%
2019/20 NHS Income 2020/21 19%
HMG Covid
21%
Funding
26%
Retail
19%
Investments
2% Lottery Fundraising
Fundraising 7% 27%
27%
Retail
Legacies
7%
20%
Legacies
12%
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Phyllis Tuckwell Memorial Hospice Ltd Annual Report and Financial Statements 2021

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20/21 Total income for the year
19/20
was £13.08m (2019/20
£12.0m).
Of this approximately 45%
£13.1m £12.0m
was government/NHS
funding whereas in a more
normal year NHS funding
is around 21%.
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Of this approximately 45% was government/NHS funding whereas in a more normal year NHS funding is around 21%.

The charity held £18.0m in investments at 31 March 2021.

These earned £301,000 of interest and dividends during the year and had unrealised gains of £4.1m.

Total expenditure for the year was £11.84m (2019/20 £11.83m).

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20/21 19/20
£11.8m £11.8m
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This gave us an operating surplus of £1.24m (2019/20 £0.17m).

The total reserves of the charity increased by £5.3m to £25.4m at 31 March 2021.

The balance in the General Reserve was £6.7 million.

Investments

Movements on global stock markets at the start of the pandemic led to a loss on our investment portfolio last year (2019/20) of £1.4m. With confidence returning to economies, stock markets have recovered their losses. This together with careful management of our portfolio led to a gain of £4.1m by 31 March 2021. The total portfolio is divided into two funds, an Income Fund and a Growth Fund.

The portfolio is managed on a discretionary basis by Investec Wealth and Investment, a firm of professional investment managers. The only ethical restriction imposed by the Board is that there must be no direct investment in any securities issued by tobacco companies and any amount within a tracker or unit trust fund will be insignificant. Finance Sub-Committee is comfortable with the policies that Investec use to satisfy themselves that proper environmental, social and governance principles are integrated into the operations of companies they invest in.

A bespoke benchmark is set for the funds with pre-set amounts of different classes of asset. The actual results are then compared to the benchmarks. For the 12 months to 31 March the medium term (income) fund earned a total return of 26.7% against a benchmark of 22.2% and the longer term (growth) fund earned a return of 38.3% against a benchmark of 33.4%.

Investment properties are measured initially at cost and subsequently included in the balance sheet at fair value. Investment properties are not depreciated. Any change in fair value is recognised in the statement of financial activities. The valuation method used to determine fair value is stated in the notes to the accounts.

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There is a Trustee-approved reserves policy in place.

There is a Trustee-approved reserves policy in place. The General Reserve is to enable Phyllis Tuckwell to continue to deliver a full range of services should there be an unexpected fall in income. If income cannot be restored to previous levels, then services may have to be curtailed, but changes can be implemented in a planned way.

The policy is reviewed each year and a target level for the General Reserve is calculated at the end of each financial year based on the approved budget for the next year, the general economic climate and recent trends in charity giving. The target for 2021/22 is £6.2 to £7.0 million which equates to 6-7 months of expenditure. At 31 March 2021 the balance on the General Reserve was £6.7m. The target was £6.1 to £6.9 million.

Endowment Fund – The Jenabai Ebrahim fund, with income generated each year used to fund one of the inpatient rooms.

Restricted Funds - £1.0m held for specific purposes as determined by the donor. 77% of these relate to building projects.

The charity has four designated funds :

i. Property Fund

This fund represents the net value of Tangible Fixed Assets that were purchased with unrestricted funds.

assist with the costs of any new premises or major refurbishments that may be required in the future. A review of the Hospice’s premises has been carried out following the rapid growth in recent years and the serviceability of current buildings. The fund has been reviewed in the light of requirements for locality working and will be further reviewed following the Covid-19 pandemic.

Before Phyllis Tuckwell introduces a new service or expands an existing service, the Trustees need to know that it can be funded for at least three years, whilst allowing time for Income Generation to cover these additional costs. This fund provides this financial backing, thereby speeding up the development of services. The balance at 31 March 2021 was £1.5 million based on the cost of services introduced over the last three years and budgeted for the next year, including Hospice Care at Home, and locality working.

This fund is to cover the investments in our general operating plan over the next four to five years. It is to fund our planned deficit budgets, ensuring the plan is adequately funded through a period of economic uncertainty.

ii. Building Development Fund

This fund was established to accrue funds to

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The UK Government’s Streamlined Energy and Carbon Reporting policy was implemented on 1 April 2019, when the Companies (Directors’ Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018 came into force.

Phyllis Tuckwell Memorial Hospice Limited (PTMH) meets SECR qualification criteria in the UK. The reporting period for the compliance is 1[st] April 2020 - 31[st] March 2021.

Included within that are Scope 1 & 2 emissions. The Green House Gas Protocol Corporate Accounting &

Reporting Standard and UK Government’s Green House Gas Conversion Factors for Company Reporting have been used as part of carbon emissions calculation.

Scope of report

The scope covered under this report includes:

----- Start of picture text -----
kWh tonnes of CO2e
Gas consumption at premises where PTMH holds control
721,492 147
over metering and invoicing
UK Electricity at premises where PTMH holds control
508,209 118
over metering and invoicing
Owned transport – for vehicles owned by PTMH 126,115 30
Business Travel (land) – private staff and volunteer mileage. 66,976 16
TOTAL 1,422,792 312
----- End of picture text -----

The results show that the charity’s total gross Green House Gas emissions amounted to 312 tonnes of CO2 equivalent emissions in the 2020/21 financial year in the UK. (2019/20 337 tonnes).

This gives an energy intensity metric of 150.9 kg of CO2e per patient supported (2019/20 164.8 kg).

Our retail operation also has a positive impact on the environment. In addition to selling 183,000 donated items and clothing, much of which would otherwise end up in landfill or the waste chain, many unsellable items are sent for recycling. In 2020/21 we sent 84 tonnes of textiles for recycling, generating an additional £30,000, and scrap metal with a value of £2,300.

With many shops closed and staff working from home, our fuel usage was lower during the year than last year. We continue an awareness of the effect of our work on the environment and are, for example, installing six electric vehicle points in the Hospice car park.

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As always, our top priority is to provide people with high quality, compassionate end of life care.

Doing this well relies on us having a great team of motivated, skilled staff. We will continue to support our people, giving them the chance to rest and re-energise after a very challenging year, recruiting new members of the team, and investing in skills and training.

We will focus on inclusion and increasing our ‘reach’. We will take action to make sure that we are accessible, flexible and that our face-to-face services meet the needs of all people in our community. We will also increase the efforts we put into supporting people through others – through training Care Homes’ staff and others on latest thinking and practice in end of life care or by providing advice to District Nurses, GPs and others.

We will also need to start gradually rebuilding our charitable income generation activity, investing in things that will put us on a stronger footing in years to come. Our 3-year grant from the NHS comes to an end in March 2022, so we will also be working to secure a fair deal for future years.

The pandemic has changed the way we work, and over the next few years we want to invest in digital skills and create an environment where our staff can work anywhere and access the tools they need. We want to make it easy for patients, families and supporters to engage with us digitally if they want to. We will also be taking forward our estates modernisation project to give the people we care for, and our staff, buildings that feel welcoming and are a pleasure to work in.

We aim to work ever more closely with other Hospices and colleagues working locally across the health and adult social care field - collaborating to support delivery of the Surrey Heartlands End of Life Care Strategy and Frimley ICS’s palliative and end of life care priorities.

We feel fortunate to have come through the pandemic stronger than ever, with a clear refreshed vision for what we want to do and how we intend to make it happen.

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Trustees & the Board

Trustees are appointed at the Annual General Meeting. They are selected through a process of open competition based on their skills and experience. New Trustees attend an induction day (which we continued to provide, virtually, during the outbreak). They also meet with each of the senior team as part of their induction. We are actively seeking to increase the diversity of age, ethnicity and perspective when vacancies arise. Page 3 lists the current make-up of the Trustee Board.

The management of Phyllis Tuckwell is the responsibility of the Trustees, who are Directors for the purposes of company law and Trustees for the purpose of charity law. The day-to-day running of Phyllis Tuckwell is devolved to the Chief Executive and Senior Management Team.

We have not carried out a formal governance review in 2020/21 however, the composition and number of Sub-Committees was reviewed, and the Chair carried out bilateral conversations with Trustees to inform that work. The work on IT & Estates was brought together into a new ‘Resources’ Sub-Committee, and HR was renamed the ‘People’ Sub-Committee. We have continued to use the ‘Board Wheel’ to put a regular programme of Board activities into an annual calendar. This has proved extremely useful for Trustees and the Executive alike.

The full list of Sub-Committees and their main responsibilities is below:

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This has been an exceptional year and so to ensure that our people were kept fully informed we introduced weekly virtual meetings with the Senior Management Team and Middle Managers. The purpose of these meetings was to ensure that all staff were well-versed in matters of concern and kept up-to-date as the situation changed rapidly. The meetings allowed for consultation with colleagues and information was cascaded across the organisation. Staff were encouraged to feedback via their managers, or directly to Senior Management of any concerns or suggestions for improvement. We also made excellent use of the company intranet posting regular updates on this, including the monthly team brief. This ensured that views were heard, that people were able to influence decisions and that everyone was kept abreast of matters affecting the organisation and themselves.

Staff were informed of our financial position via briefings from the Director of Finance and were encouraged to ask questions or seek further This clarification from the Director of Finance. information and reassurance was particularly important due to the impact of Covid on income generation

opportunities and to allay any concerns about the risk of redundancy.

The Senior Management Team has also adapted ways of working, with regular virtual meetings that were daily at the start of the pandemic, and during periods of heightened activity. As we progressed through Covid this shifted to weekly meetings to discuss the day-to-day business and priorities for the organisation. This information is then cascaded to the Hospice Managers and then to the rest of the organisation at the joint fortnightly meetings.

In addition to the regular Board and SubCommittee meetings, ad hoc Covid briefings have been provided to Trustees. These were fortnightly at the start of the first lockdown, and then moved to monthly updates more recently. A slide pack updating Trustees on operational activities was produced and Zoom calls arranged so Trustees could ask questions. Both Trustees and the Executive found this a positive way to share information, and make sure that there was a good flow of communication as events unfolded rapidly and in ways that were hard to anticipate.

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Phyllis Tuckwell aims to be a diverse and inclusive organisation, one that reflects the diverse population in our catchment area.

Within our application process we provide disabled applicants with the opportunity of advising HR whether any assistance is required to enable them to progress their application. On appointment all applicants undertake a ‘fit to work in role’ check. This enables Phyllis Tuckwell to provide appropriate equipment to support disabled colleagues. Throughout their tenure with the organisation we ensure that disabled colleagues are not

disadvantaged with regards to training and education or promotion. We make adjustments to ways of working or/ and roles.

Our aim is to operate as a single, empowered team, coming together to agree our approach to issues that need everyone to work together, and underpinned by clear roles and accountabilities.

Remuneration Policy

Phyllis Tuckwell is committed to ensuring that we pay our staff fairly and in a way which ensures we attract and retain the right skills to have the greatest impact in delivering our charitable objectives. In deciding senior pay awards we consider the national recommendations for Charity Senior Executive Pay and follow these where appropriate. We have a People Board Sub-Committee, which looks at all matters relating to staff and volunteers. The Chair of this Board Sub-Committee, along with the Chair of the Board and the Chair of the Finance Board Sub-Committee, form a Remuneration Sub-Group of the

Board. The main responsibilities of this group are to determine the remuneration package for the CEO and the Senior Management Team. All other remuneration discussions outside of the CEO’s level of authority, take place at the People Board Sub-Committee. In determining Phyllis Tuckwell’s remuneration policy, the People Board Sub-Committee takes into account all factors such as external and internal benchmarking, including comparators of both charity and public sector pay awards, as and when necessary. Recommendations are submitted to the Board of Trustees for ratification.

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In a ‘normal’ year we have to raise 75-80% of our total income ourselves. Roughly a fifth comes from NHS funding. This year we have benefitted from one-off funding from the NHS in recognition of the role we have played in tackling the pandemic and reducing pressure on the NHS. We are extremely grateful for much-needed funding, however we still had to raise £6m ourselves.

Our fundraising usually involves encouraging donations and gifts in wills, running events, engaging our local community to fundraise on our behalf, running a chain of charity shops, working with local companies and applying for grants from Trusts. There was severe disruption to many of these activities during the pandemic, and we have been amazed and inspired by how much support we received from supporters and donors. We believe

this is in part because of the effort we put into securing and maintaining the trust of our supporters, for example through not selling or passing on their data to third parties and by keeping our community engaged through regular social media activity.

We voluntarily subscribe to the Fundraising Regulator, and respond quickly to any complaints. In 2020/21, from tens of thousands of transactions we received just 6 complaints, all of which were dealt with satisfactorily, and none was referred to the Fundraising Regulator.

We also adhere to the Code of Fundraising Practice which ensures we work appropriately with those who are vulnerable or who need additional support.

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Relationships with wider interests and related parties.

We work closely with 6 neighbouring Hospices, local Care Homes and NHS organisations. The value of close integration with other health and social care providers has never been clearer than over the last year. We have worked as a team to manage the impact of the pandemic together.

The NHS landscape is complex and active. We work across part of the Frimley Healthcare ICS and Surrey Heartlands ICS areas, 2 acute hospitals (Frimley Health and Royal Surrey County Hospital), Guildford & Waverley Alliance Partnership (ICP) and Frimley CCG (bringing together North East Hampshire & Farnham, Surrey Heath and East Berkshire Clinical Commissioning Groups).

We have strong relationships with our local Commissioning partners, and have kept them informed about our performance over the last year on a regular basis. We look forward to working together over the next year.

We have had two relationship meetings with our Care Quality Commission (CQC) manager since April 2020. These were an opportunity for us

to brief CQC about the work we were doing to provide high quality, safe care, and the measures we were taking to adapt our services in light of the pandemic. We also ensure that CQC are kept up-to-date with any serious incidents or significant events.

Phyllis Tuckwell also owns 50% of the Tuckwell Chase Lottery, from which we receive funds. The other 50% is owned by Shooting Star Children’s Hospice. The Lottery Company pays half its profits to each owner. During 2020/21 Phyllis Tuckwell received over £500k. They take their responsibilities for fundraising seriously and are committed to best practice standards. They are a member of the Lotteries Council and The Hospice Lotteries Association, and are regulated by the Gambling Commission under the 2005 Gambling Act.

Phyllis Tuckwell owns the whole of the issued ordinary share capital of PTH Trading Limited. (Company number 06906850). The subsidiary is used for non-primary purpose trading activities. Available profits are gift aided to the charity.

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The Board holds proactive, regular discussion of the things that could jeopardise delivery of our strategy.

The Board has identified 10 strategic risks that are monitored at quarterly Board meetings, with a ‘deep dive’ into one of the main areas of risk twice a year. The next level of risks is kept under regular review by the relevant Sub-Committee with an expectation that any emerging issues can be escalated to the Board.

Covid continues to be managed as a live issue and has dominated much of our work clinically and financially over last year. It continues to have a significant impact on many of the other strategic risks we worry about – recruitment, staff welfare, quality of patient care, income generation, inclusion, data security and health and safety.

We take Business Continuity seriously, and regularly review and update our plans. For example, this year we

have significantly improved our planning/arrangements to ensure clinicians can get to patients when it snows, by working with a local charity that provides 4x4 vehicles in extreme weather to provide essential services to vulnerable people.

We also consider external events that we cannot control or influence ourselves but have to adapt to, for example Brexit. To date, we have not experienced problems specifically associated with Brexit (e.g. workforce or supplies) but will continue to monitor the situation. As for future extreme events (e.g. climate or pandemic events) we recognise the need to plan for the possibility of future disruption.

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Statement of Responsibilities of the Trustees

The Trustees (who are also directors of Phyllis Tuckwell Memorial Hospice Ltd for the purpose of company law) are responsible for preparing the Trustees’ annual report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

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

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

In so far as the Trustees are aware:

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

Members of the charity guarantee to contribute an amount not exceeding £1 to the assets of the charity in the event of winding up. The total number of such guarantees at 31 March 2021 was 56 (2020 – 54). The Trustees are members of the charity but this entitles them only to voting rights. The Trustees have no beneficial interest in the charity.

Auditor

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

The Trustees’ annual report, including the strategic report, was approved by the Trustees on 22[nd] July 2021 and signed on their behalf by

Dr David Eyre-Brook

Chair

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I had often heard tell of the atmosphere in a hospice to be cheerful and not gloomy, and this was certainly my experience when visiting. All the staff were so incredibly caring, friendly, supportive and helpful, you really do have an amazing place.

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Opinion

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

In our opinion, the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on Phyllis Tuckwell Memorial Hospice Limited's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other Information

The other information comprises the information included in the trustees’ annual report, including the strategic report, other than the group financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the group financial statements does not cover the other information, and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the group financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the group financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

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Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required

to report by exception

In the light of the knowledge and understanding of the group and the parent charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ annual report, including the strategic report.

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

Responsibilities of trustees

As explained more fully in the statement of trustees’ responsibilities set out in the trustees’ annual report, the trustees (who are also the directors of the parent charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the group’s and the parent charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the group or the parent charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

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

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of noncompliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud are set out below.

Capability of the audit in detecting irregularities

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

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

Use of our report

This report is made solely to the charitable company's members as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and section 144 of the Charities Act 2011 and regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditor’s report and for no other purpose.

To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Joanna Pittman (Senior statutory auditor) 3[rd] August 2021

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

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

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.

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----- Start of picture text -----
For the year ended 31 March 2021
2021 2020
Restricted/ Restricted/
Unrestricted Total Unrestricted Total
Endowment Endowment
Note £ £ £ £ £ £
Incoming resources:
Voluntary income 2 3,232,241 10,191 3,242,432 3,545,520 9,231 3,554,751
Activities for generating funds:
Fundraising 1,471,772 408,076 1,879,848 1,717,215 344,726 2,061,941
Retail 1,087,951 297,430 1,385,381 2,532,667 - 2,532,667
- -
Lottery 943,138 943,138 918,274 918,274
Charitable activities 3 2,501,177 2,812,559 5,313,736 2,338,170 167,126 2,505,296
Investments 4 294,490 22,830 317,320 423,223 1,881 425,104
Total income 9,530,769 3,551,086 13,081,855 11,475,069 522,964 11,998,033
Resources expended:
Raising funds: 5
- -
Voluntary income generation costs 170,869 170,869 214,074 214,074
-
Fundraising costs 632,872 13,362 646,234 752,225 752,225
Retail costs 1,484,854 297,430 1,782,284 1,914,789 - 1,914,789
- -
Lottery costs 419,590 419,590 478,063 478,063
- -
Investment management costs 55,370 55,370 52,280 52,280
Sub-total for raising funds 2,763,555 310,792 3,074,347 3,411,431 - 3,411,431
Charitable activities: 5
In-Patient Unit 2,632,908 1,256,841 3,889,750 3,603,915 118,330 3,722,245
Living Well 834,555 27,448 862,003 778,806 72,136 850,942
Care at Home 1,925,516 2,092,098 4,017,613 3,583,805 262,230 3,846,035
Sub-total for charitable activities 5,392,979 3,376,387 8,769,366 7,966,526 452,696 8,419,222
Total expenditure 8,156,534 3,687,179 11,843,713 11,377,957 452,696 11,830,653
Net income / (expenditure) before
1,374,236 (136,093) 1,238,143 97,112 70,268 167,380
net gains on investments
Net gains / (losses) on investments 13 4,072,930 - 4,072,930 (1,379,701) - (1,379,701)
Net movement in funds 5,447,166 (136,093) 5,311,072 (1,282,589) 70,268 (1,212,321)
Reconciliation of funds:
Total funds brought forward 18,904,818 1,220,472 20,125,290 20,187,407 1,150,204 21,337,611
Total funds carried forward 24,351,984 1,084,379 25,436,362 18,904,818 1,220,472 20,125,290
----- End of picture text -----

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----- Start of picture text -----
As at 31 March 2021
The group The charity
2021 2020 2021 2020
Note £ £ £ £
Fixed assets:
Tangible assets 11 3,110,997 3,366,780 3,110,997 3,366,780
Investment properties 12 115,000 115,000 115,000 115,000
Investments 13 18,012,943 12,870,183 18,012,944 12,870,184
Total fixed assets 21,238,940 16,351,963 21,238,941 16,351,964
Current assets:
Stocks 15 8,499 10,236 - 2,416
Debtors 16 1,277,405 1,565,811 1,297,283 1,584,351
Short term deposits 1,000,000 1,766,396 1,000,000 1,766,396
Cash and cash equivalents 2,474,584 1,013,258 2,463,116 1,005,037
Total current assets 4,760,488 4,355,700 4,760,399 4,358,200
Liabilities:
Creditors: amounts falling due within one year 17 (563,066) (582,374) (562,978) (584,874)
Net current assets 4,197,422 3,773,327 4,197,421 3,773,326
Total net assets 20 25,436,362 20,125,290 25,436,362 20,125,290
Funds: 21
Restricted income funds:
Endowment fund 69,182 69,182 69,182 69,182
Restricted funds 1,015,197 1,151,290 1,015,197 1,151,290
Total restricted funds 1,084,379 1,220,472 1,084,379 1,220,472
Unrestricted income funds:
Designated funds 17,638,149 11,409,084 17,638,149 11,409,084
General funds 6,713,835 7,495,734 6,713,835 7,495,734
Total unrestricted funds 24,351,984 18,904,818 24,351,984 18,904,818
Total funds 25,436,362 20,125,289 25,436,362 20,125,289
----- End of picture text -----

Approved by the Trustees on 22 July 2021 and signed on their behalf by

David Eyre-Brook (Chair) Veronica Carter (Trustee)

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Note
2021
2020
£
£
£
£
For the year ended 31 March 2021		 Note
2021
2020
£
£
£
£
For the year ended 31 March 2021		 2020 2020
Cash fows from operating activities
Net income for the reporting period
5,311,072
Depreciation charges
361,829
(Gains) / Losses on investments
(4,072,928)
Loss of disposal of fxed assets
1,710
Dividends, interest and rent from investments
(317,320)
Decrease / (Increase) in stocks
1,737
Decrease / (Increase) in debtors
288,406
(Decrease) in creditors
(19,308)		 (1,212,321)
355,596
1,379,701
-
(425,104)
(1,521)
(901,990)
(13,580)
Net cash (used in) operating activities 1,555,198 (819,219)
Cash fows from investing activities:
Dividends and interest from investments
317,320
Purchase of fxed assets
(107,756)
Proceeds from sale of investments
2,094,878
Purchase of investments
(3,115,954)
Decrease / (Increase) in term deposits
766,396
(Increase) in cash funds held by investment managers
(48,755)		 425,104
(276,546)
2,920,754
(2,514,119)
(2,474)
(28,082)
Net cash (used in) / provided by investing activities (93,872) 524,637
Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
Analysis of cash and cash equivalents
At 1 April 2020
£
Cash at bank and in hand
513,258
Term deposits (less than 3 months)
500,000		 1,461,326
1,013,258
2,474,584
Cash fows
Other changes
£
£
1,461,326
-
-
-		 (294,582)
1,307,840
1,013,258
At 31 March
2021
£
1,974,584
500,000
Closing balance at bank
1,013,258		 1,461,326
-		 2,474,584

Phyllis Tuckwell Memorial Hospice Ltd Annual Report and Financial Statements 2021

37

For the year ended 31 March 2021

1 Accounting policies

a) Statutory information

Phyllis Tuckwell Memorial Hospice Limited is a charitable company limited by guarantee and is incorporated in the United Kingdom.

The registered office address of the charity and its subsidiary, PTH Trading Limited is Waverley Lane, Farnham, Surrey, GU9 8BL.

b) Basis of preparation

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) - (Charities SORP FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

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

These financial statements consolidate the results of the charitable company and its wholly-owned subsidiary PTH Trading Limited on a line by line basis. Transactions and balances between the charitable company and its subsidiary have been eliminated from the consolidated financial statements. Balances between the two companies are disclosed in the notes of the charitable company's balance sheet. A separate statement of financial activities, or income and expenditure account, for the charitable company itself is not presented because the charitable company has taken advantage of the exemptions afforded by section 408 of the Companies Act 2006.

c) Public benefit entity

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

d) Going concern

The effects of Covid-19 create considerable risk in forecasting. However when taking into account the level of reserves, the Trustees consider that there are no material uncertainties regarding the charitable company's ability to continue as a going concern.

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

e) Income

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

Income from government and other grants, whether ‘capital’ grants or ‘revenue’ grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred. During the year £245,688 of retail hospitality & leisure grants in respect of shops with a rateable value up to £51,000 was received. These accounts recognise the grants within Retail Income.

Income from HMRC relating to the Coronavirus Job Retention Scheme (total: £352,374) is shown as income within Fundraising, Retail or Charitable activities as appropriate.

For legacies, entitlement is taken as the earlier of the date on which either: the charity is aware that probate has been granted, the estate has been finalised and notification has been made by the executor(s) to the charity that a distribution will be made, or when a

Phyllis Tuckwell Memorial Hospice Ltd Annual Report and Financial Statements 2021

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distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the charity has been notified of the executor’s intention to make a distribution. Where legacies have been notified to the charity, or the charity is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is treated as a contingent asset and disclosed if material.

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

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

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

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

Endowment funds are restricted funds whereby the capital sum is invested but the income is used for objects of the charity.

i) Expenditure and irrecoverable VAT

Irrecoverable VAT is charged as a cost against general overheads and allocated according to note 5.

g) Investment income and dividends

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j) Allocation of support costs

Resources expended are allocated to the particular activity where the cost relates directly to that activity. However, the cost of overall direction and administration of each activity, comprising the salary and overhead costs of the central function, is apportioned on the following basis which is an estimate, based on staff time, of the amount attributable to each activity.

Where information about the aims, objectives and projects of the charity is provided to potential beneficiaries, the costs associated with this publicity are allocated to charitable expenditure.

Where such information about the aims, objectives and projects of the charity is also provided to potential donors, activity costs are apportioned between fundraising and charitable activities on the following basis:

In-Patient Unit 30%
Living Well 10%
Care at Home 30%
Activities for generating funds 30%

Support and governance costs are re-allocated to each of the activities on the following basis:

The cost of overall direction and administration of each activity, comprising the salary and overhead cost of the central function is apportioned on the number of staff attributable to each activity:

Activities to generate funds 28.17%
In-Patient Unit 32.49%
Living Well 7.38%
Community Care 31.96%

Premises costs are allocated on the basis of square footage attributable to each activity:

Activities to generate funds 6.78%
In-Patient Unit 69.92%
Living Well 8.46%
Care at Home 14.84%

IT costs are allocated based on the number of computers attributable to each activity:

Activities to generate funds 13.21%
In-Patient Unit 36.48%
Living Well 3.77%
Community Care 46.54%

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

k) Operating leases

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

l) Pensions

The charitable company contributes to two pension schemes on behalf of employees. The charitable company operates a defined contribution pension scheme. The charitable company has no liability under the scheme other than for the payment of those contributions. It also contributes to a defined benefit superannuation scheme. The assets of both these schemes are held separately from the charitable company. The pension cost charge represents contributions payable under the schemes by the charitable company. Further information on the schemes is included in note 19.

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m) Tangible fixed asses

Items of equipment are capitalised where the purchase price exceeds £1,000. Depreciation costs are allocated to activities on the basis of the use of the related assets in those activities. Assets are reviewed for impairment if circumstances indicate their carrying value may exceed their net realisable value and value in use.

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

Freehold property 50 years
Freehold property improvements 10 years
Leasehold property 3 years
Furniture, equipment, fxtures and fttings 5 years
IT equipment 3 years
Vehicles 5 years
Software 5 years

o) Investment properties

Investment properties are measured initially at cost and subsequently included in the balance sheet at fair value. Investment properties are not depreciated. Any change in fair value is recognised in the statement of financial activities. The valuation method used to determine fair value will be stated in the notes to the accounts.

p) Investments in subsidiaries

Investments in subsidiaries are at cost.

q) Stocks

Stocks are stated at the lower of cost and net realisable value. In general, cost is determined on a first in first out basis and includes transport and handling costs. Net realisable value is the price at which stocks can be sold in the normal course of business after allowing for the costs of realisation. Provision is made where necessary for obsolete, slow moving and defective stocks. The value of donated goods for resale is not recognised on receipt. Instead, the value to the charity of these goods is recognised as income when sold.

r) Debtors

Land valued at £31,250 within Freehold property is not depreciated.

n) Listed investments

Investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing quoted market price. Investment gains and losses, whether realised or unrealised, are combined and shown in the heading “Net gains/(losses) on investments” in the statement of financial activities. The charity does not acquire put options, derivatives or other complex financial instruments.

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

s) Cash at bank and in hand

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

t) Short term deposits

Short term deposits represent amounts held on deposit with a maturity of between three months and one year.

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2 Voluntary income

u) Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

v) Financial instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

----- Start of picture text -----
2021
Unrestricted Restricted Total
£ £ £
Donations 1,704,001 9,191 1,713,192
Legacies 1,528,240 1,000 1,529,240
Total income 3,232,241 10,191 3,242,432
2020
Unrestricted Restricted Total
£ £ £
Donations 1,107,572 9,231 1,116,803
-
Legacies 2,437,948 2,437,948
Total income 3,545,520 9,231 3,554,751
----- End of picture text -----

The 2020 figures have been restated to include patient related donations of £463,352 which were previously reported as income from charitable activities - see also note 3.

At the year end the charity had been notified of two material legacies that it was unable to measure reliably at that time. Since the year end the charity has been informed that it is due £310,000 from these legacies.

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3 Income from charitable activities

----- Start of picture text -----
2021 2020
Unrestricted Restricted Total Unrestricted Restricted Total
£ £ £ £ £ £
Grants:
NHSE - Covid Support - 2,749,351 2,749,351 - - -
NHS Guildford & Waverley -
2,254,876 2,254,876 2,201,182 145,000 2,346,182
CCG
Surrey Heath CCH - -
21,626 21,626 22,126 22,126
Home Support
- -
Continuing Health 231,052 231,052 136,988 136,988
Total grant income 2,485,928 2,770,977 5,256,905 2,338,170 167,126 2,505,296
Other income 15,249 41,582 56,831 - - -
Total income from
2,501,177 2,812,559 5,313,736 2,338,170 167,126 2,505,296
charitable activities
----- End of picture text -----

The 2020 figures have been restated to exclude patient related donations of £463,352 which were previously reported as income from charitable activities - see also note 2.

NHSE - Covid Support

NHSE awarded funding to allow the Hospice to make available bed capacity and community support from April 2020 to July 2020 to provide support to people with complex needs in the context of the Covid-19 situation and to provide bed capacity and community support from November 2020 to March 2021 for the same purpose.

4 Income from investments

----- Start of picture text -----
2021 2020
Unrestricted Endowment Total Unrestricted Endowment Total
£ £ £ £ £ £
Investments (interest
277,917 22,830 300,747 389,137 1,881 391,018
& dividends)
Investment property - - - 7,542 - 7,542
income
- -
Term deposit interest 16,191 16,191 24,921 24,921
Bank interest 382 - 382 1,623 - 1,623
Total income 294,490 22,830 317,320 423,223 1,881 425,104
----- End of picture text -----

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5a Analysis of expenditure (current year)

----- Start of picture text -----
Charitable activities
Cost of
In-Patient Care at Governance Support
raising Living Well 2021 Total 2020 Total
Unit Home costs costs
funds
£ £ £ £ £ £ £ £
Staff costs (note 7) 1,415,583 2,652,589 648,769 3,349,760 7,877 1,075,580 9,150,158 8,769,608
Fundraising/ - - - - -
236,813 236,813 361,382
Retail costs
Marketing & - -
34,246 20,202 8,081 20,202 82,731 100,469
Communications
- - - - -
Lottery costs 419,590 419,590 478,063
Catering - 188,026 - 76 - 11,793 199,895 243,143
Premises 491,755 - 44,583 - - 119,491 655,829 696,681
Travel 16,839 - 1,776 32,582 - 3,068 54,265 111,263
Consumables - 89,397 22,012 53,759 - 1,892 167,060 155,479
Depreciation & - -
45,588 57,305 10,054 250,592 363,539 355,596
loss on disposal
Maintenance & - -
45,111 1,240 5,580 68,289 120,220 132,702
repairs
Subscriptions & - 3,724 827 3,724 - 14,306 22,581 12,894
publications
IT 20,359 22,463 4,992 22,463 - 131,907 202,184 192,348
Insurance 16,065 - 281 3,936 1,392 24,225 45,899 48,246
Audit & - - - -
3,550 13,025 16,575 17,600
accountancy fees
Legal & - 2,547 566 2,547 352 4,110 10,122 54,085
professional fees
Office costs - 1,813 403 17,944 - 20,721 40,881 48,812
Investment - - - - -
55,370 55,370 52,280
management costs
Sub-total 2,755,759 3,083,177 733,530 3,522,627 22,646 1,725,974 11,843,713 11,830,653
Governance costs 6,228 7,406 1,729 7,283 (22,646) - - -
Support costs 312,360 799,167 126,744 487,703 - (1,725,974) - -
Total
expenditure 3,074,347 3,889,750 862,003 4,017,613 - - 11,843,713 -
2021
Total expenditure 3,411,431 3,722,245 850,942 3,846,035 - - - 11,830,653
2020
----- End of picture text -----

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5b Analysis of expenditure (prior year)

----- Start of picture text -----
Charitable activities
Cost of
In-Patient Care at Governance Support
raising Living Well 2020 Total
Unit Home costs costs
funds
£ £ £ £ £ £ £
Staff costs (note 7) 1,465,694 2,478,884 588,302 3,101,044 8,422 1,127,261 8,769,608
Fundraising/ - - - - -
361,382 361,382
Retail costs
Marketing & - -
41,040 24,762 9,905 24,762 100,469
Communications
- - - - -
Lottery costs 478,063 478,063
Catering - 202,538 18,630 740 - 21,235 243,143
Premises 528,855 - 65,821 - - 102,006 696,681
Travel 30,433 - 4,061 73,506 - 3,264 111,263
Consumables - 83,556 22,336 47,709 - 1,878 155,479
Depreciation & - -
66,070 49,188 14,272 226,066 355,596
loss on disposal
Maintenance & - -
46,684 2,642 11,891 71,485 132,702
repairs
Subscriptions & - 3,046 677 3,046 - 6,125 12,894
publications
IT 21,172 22,506 5,001 22,506 - 121,163 192,348
Insurance 20,230 - 270 3,781 1,171 22,794 48,246
Audit & - - - -
3,450 14,150 17,600
accountancy fees
Legal & - 2,547 566 2,547 554 47,870 54,085
professional fees
Office costs - 1,852 412 22,577 - 23,970 48,812
Investment - - - - -
52,280 52,280
management costs
Sub-total 3,068,670 2,915,564 718,624 3,328,382 24,297 1,775,117 11,830,653
Governance costs 6,681 7,946 1,856 7,814 (24,297) - -
Support costs 336,080 798,736 130,463 509,838 - (1,557,117) -
Total
expenditure 3,411,431 3,722,245 850,942 3,846,035 - - 11,830,653
2020
----- End of picture text -----

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6 Net income / (expenditure) for the year

This is stated after charging:

2021 2020
£ £
Depreciation 361,829 355,596
Loss on disposal of fxed assets 1,710 -
Operating lease rentals:
Property 369,263 390,423
Other 5,104 5,856
Auditor's remuneration (excluding VAT):
Audit - Hospice 12,050 11,850
Audit - Trading Company 2,700 2,650
Other Services 1,800 4,150

7 Analysis of staff costs, the cost of key management personnel and trustees' remuneration and expenses

a) Staff costs were as follows:

----- Start of picture text -----
2021 2020
£ £
Salaries and wages 7,508,109 7,122,591
Social security costs 695,335 646,535
Employer's contribution to pension schemes 614,395 588,035
Self-employed / contractors costs 239,444 294,594
Other forms of employee benefits 92,875 117,853
Total 9,150,158 8,769,608
----- End of picture text -----

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8 Staff numbers

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


during the year between:
2021 2020
No. No.
£60,000 - £69,999 3 5
£70,000 - £79,999 1 1
£80,000 - £89,999 1 -
£90,000 - £99,999 1 1
£100,000 - £109,999 1 1
£120,000 - £129,999 - 1
£130,000 - £139,999 1 -

The employees above include four medical/clinical staff, the CEO and three other members of the SMT, with the two highest paid employees being from the medical team (2020: five medical/clinical staff, the CEO and three other members of the SMT, with the two highest paid employees being from the medical team).

The total employee benefits, including pension contributions and employer national insurance, of the eight key management personnel listed on page 3 were £744,325 (2020: £735,628).

Trustees' expenses of £nil were incurred (2020: £nil).

The average number of employees (head count based on number of staff employed) during the year was as follows:

----- Start of picture text -----
2021 2020
No. No.
Nursing staff 123 117
Medical staff 10 9
Clinical support staff 22 20
Patient & Family Support 13 15
Therapists 18 17
Fundraising and publicity 19 21
Retail staff 63 65
Administration 19 19
Support staff 32 30
Education staff 4 4
Total 323 316
----- End of picture text -----

The average number of full time equivalent employees was as follows:

----- Start of picture text -----
2021 2020
No. No.
Nursing staff 83.7 80.0
Medical staff 6.1 6.2
Clinical support staff 16.3 15.2
Patient & Family Support 9.1 9.7
Therapists 11.9 11.2
Fundraising and publicity 15.7 16.4
Retail staff 40.7 41.1
Administration 16.5 16.4
Support staff 16.5 16.2
Education staff 2.9 3.0
Total 219.4 215.4
----- End of picture text -----

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47

9 Related party transactions

The Phyllis Tuckwell Memorial Hospice Limited owns 50% of Tuckwell Chase Lottery Limited. The Hospice received £523,548 during the year from the Lottery company (2020: £440,211).

10 Taxation

The charity is exempt from corporation tax as all its income is charitable and is applied for charitable purposes. The charity's trading subsidiary PTH Trading Limited gift aids available profits to the parent charity. Its charge to corporation tax in the year was £nil (2020: £nil).

The Phyllis Tuckwell Memorial Hospice Limited recognises 50% of the total income and expenditure from the Tuckwell Chase Lottery Limited in the Statement of Financial Activities. In substance, the Tuckwell Chase Lottery pays over 50% of its generated surplus throughout the year. Any difference between the amounts paid over during the year and the surplus for Tuckwell Chase Lottery Limited at the end of the year is recognised as a debtor or creditor by the Phyllis Tuckwell Memorial Hospice Limited at the end of the year.

There are no donations from related parties which are outside the normal course of fundraising activities and no restricted donations from related parties.

11 Tangible fixed assets

For the group and the charity

----- Start of picture text -----
Freehold Clinical Equipment & Fixtures &
Total
property Equipment Other Assets Fittings
----- End of picture text -----

£
£
£
£
£		 £
£
£
£
£		 £
£
£
£
£		 £
£
£
£
£
Cost
At the start of the year
5,306,565
Additions in year
7,522
Disposals in year
-		 559,321
7,543
(3,945)		 1,713,034
79,415
(8,950)		 142,278
7,721,198
13,276
107,756
-
(12,895)
At the end of the year
5,314,087		 562,919 1,783,499 155,554
7,816,059
Depreciation
At the start of the year
2,517,961
Charge for the year
142,401
Eliminated on disposal
-		 411,459
47,268
(2,236)		 1,312,847
162,124
(8,950)		 112,151
4,354,418
10,037
361,829
-
(11,186)
At the end of the year
2,660,361		 456,491 1,466,021 122,188
4,705,062
Net book value
At the end of the year
2,653,725		 106,428 317,478 33,366
3,110,997
At the start of the year
2,788,604		 147,862 400,187 30,126
3,366,780

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48

12 Investment properties

The group
The charity
2021
2020
2021
2020
£
£
£
£		 The group
The charity
2021
2020
2021
2020
£
£
£
£
The charity
2020 2021 2020
Fair value at start of year
115,000
115,000
115,000
115,000
Fair value at the end of the year
115,000
115,000
115,000
115,000

The Charity received the freehold interest in a property as the result of a legacy. The Charity has reviewed a valuation undertaken by a recognised professional independent valuer at 31 March 2020 and considered this and current market conditions when determining the value at 31 March 2021.

13 Investments

Investments comprise:

----- Start of picture text -----
The group The charity
2021 2020 2021 2020
£ £ £ £
UK fixed interest corporate bonds 954,811 746,309 954,811 746,309
UK listed equities 4,912,013 4,275,531 4,912,013 4,275,531
UK listed overseas equities 8,966,556 6,002,656 8,966,556 6,002,656
Investment Property funds 651,687 668,987 651,687 668,987
Other listed investments 925,880 873,460 925,880 873,460
Short term cash investments 1,250,000 - 1,250,000 -
Investment portfolio cash 351,996 303,240 351,996 303,240
Investment portfolio value 18,012,943 12,870,183 18,012,943 12,870,183
Investment in subsidiary - - 1 1
Total value of investments 18,012,943 12,870,183 18,012,944 12,870,184
----- End of picture text -----

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49

Movement in the investment portfolio fair value:

The group
The charity
2021
2020
2021
2020
£
£
£
£		 The group
The charity
2021
2020
2021
2020
£
£
£
£		 The charity The charity
2020 2021 2020
Fair value at the start of the year excluding cash
12,566,943
14,353,280
12,566,944
14,353,281
Additions at cost
3,115,954
2,514,119
3,115,954
2,514,119
Disposal proceeds
(2,094,878)
(2,920,754)
(2,094,878)
(2,920,754)
Net (loss)/gain in fair value
4,072,928
(1,379,701)
4,072,928
(1,379,701)
Sub-total
17,660,947
12,566,943
17,660,948
12,566,944
Cash held by investment manager pending reinvestment
351,996
303,240
351,996
303,240
Fair value at the end of the year
18,012,943
12,870,183
18,012,944
12,870,184
Historic cost at the end of the year
12,249,390
11,303,086
12,249,391
11,303,087

14 Subsidiary undertaking and parent charity results

The charitable company owns the whole of the issued ordinary share capital of PTH Trading Limited, a company registered in England. The subsidiary is used for non-primary purpose trading activities. All activities have been consolidated on a line by line basis in the Statement of Financial Activities. Available profits are gift aided to the charitable company. A summary of the results of the subsidiary is shown below:

2021 2020
£ £
Turnover 61,457 97,213
Cost of sales (13,818) (28,138)
Gross proft 47,639 69,075
Administrative expenses (8,231) (6,773)
Management charge payable to parent charity (2,400) (2,400)
Proft on ordinary activities 37,008 59,902
Taxation - -
Proft for the fnancial year 37,008 59,902

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50

Retained earnings

----- Start of picture text -----
2021 2020
£ £
- -
Total retained earnings brought forward
Profit for the financial year 37,008 59,902
Distribution paid in the year under Gift Aid to parent charity (37,008) (59,902)
- -
Total retained earnings carried forward
----- End of picture text -----

The aggregate of the assets, liabilities and reserves was:

The aggregate of the assets, liabilities and reserves was:
2021 2020
£ £
Assets 23,551 24,958
Liabilities (23,550) (24,957)
Reserves 1 1

Amounts owed from the parent undertaking are shown in note 17.

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

2021 2020
£ £
Gross income 13,059,806 11,963,122
Result for the year 5,311,072 (1,212,321)

15 Stocks

----- Start of picture text -----
The group The charity
2021 2020 2021 2020
£ £ £ £
Finished goods 8,499 10,236 - 2,416
Total 8,499 10,236 - 2,416
----- End of picture text -----

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51

16 Debtors

----- Start of picture text -----
The group The charity
2021 2020 2021 2020
£ £ £ £
Tax and social security 58,715 81,927 58,593 81,927
Trade debtors 36,722 25,098 36,722 25,098
Other debtors 960,491 1,236,629 960,491 1,236,629
Prepayments 221,477 222,157 221,477 220,697
Loan due from subsidiary due in over one year - - 20,000 20,000
Total 1,277,405 1,565,811 1,297,283 1,584,351
----- End of picture text -----

17 Creditors: amounts falling due within one year

----- Start of picture text -----
The group The charity
2021 2020 2021 2020
£ £ £ £
Taxation and social security 164,302 173,856 164,302 172,349
Trade creditors 70,380 55,734 70,380 55,734
Other creditors 1,761 2,209 1,761 2,209
Accruals 192,804 234,798 189,254 231,348
Pension accruals 91,690 86,907 91,690 86,907
Deferred income 42,129 28,870 42,129 28,870
Amount due to subsidiary - - 3,462 7,457
Total 563,066 582,374 562,978 584,874
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18 Deferred income

Deferred income comprises various amounts relating to fundraising events being held in 2020/21.

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The group The charity
2021 2020 2021 2020
£ £ £ £
Balance at the beginning of the year 28,870 64,117 28,870 64,117
Amount released to income in the year (28,870) (64,117) (28,870) (64,117)
Amount deferred in the year 42,129 28,870 42,129 28,870
Balance at the end of the year 42,129 28,870 42,129 28,870
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19 Pension schemes

NHS Pension Scheme

The NHS Pension Scheme is an unfunded occupational scheme backed by the Exchequer, which is open to all NHS employees and certain employees of other approved organisations. The Phyllis Tuckwell Hospice is an approved organisation. The Scheme provides pensions, based on final salary, in varying circumstances for employees of participating employers. The Scheme receives contributions from employees and employers to defray the costs of pensions and other benefits.

Relevant past and present employees are covered by the provisions of the two NHS Pension Schemes. Details of the benefits payable and rules of the Schemes can be found on the NHS Pensions website at www.nhsbsa.nhs. uk/pensions. Both are unfunded defined benefit schemes that cover NHS employers, GP practices and other bodies, allowed under the direction of the Secretary of State for Health and Social Care in England and Wales. They are not designed to be run in a way that would enable NHS bodies to identify their share of the underlying scheme assets and liabilities. Therefore, each scheme is accounted for as if it were a defined contribution scheme: the cost to the NHS body participating in each scheme is taken as equal to the contributions payable to that scheme for the accounting period.

In order that the defined benefit obligations recognised in the financial statements do not differ materially from

those that would be determined at the reporting date by a formal actuarial valuation, the FReM requires that “the period between formal valuations shall be four years, with approximate assessments in intervening years”. An outline of these follows:

A valuation of scheme liability is carried out annually by the scheme actuary (currently the Government Actuary’s Department) as at the end of the reporting period. This utilises an actuarial assessment for the previous accounting period in conjunction with updated membership and financial data for the current reporting period, and is accepted as providing suitably robust figures for financial reporting purposes. The valuation of the scheme liability as at 31 March 2021, is based on valuation data as at 31 March 2020, updated to 31 March 2021 with summary global member and accounting data. In undertaking this actuarial assessment, the methodology prescribed in IAS 19, relevant FReM interpretations, and the discount rate prescribed by HM Treasury have also been used.

The latest assessment of the liabilities of the scheme is contained in the report of the scheme actuary, which forms part of the annual NHS Pension Scheme Accounts. These accounts can be viewed on the NHS Pensions website and are published annually. Copies can also be obtained from The Stationery Office.

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b) Full actuarial (funding) valuation

The purpose of this valuation is to assess the level of liability in respect of the benefits due under the schemes (taking into account recent demographic experience), and to recommend contribution rates payable by employees and employers.

The latest actuarial valuation undertaken for the NHS Pension Scheme was completed as at 31 March 2016. The results of this valuation set the employer contribution rate payable from April 2019 to 20.6% of pensionable pay.

The 2016 funding valuation was also expected to test the cost of the Scheme relative to the employer cost cap set following the 2012 valuation. In January 2019, the Government announced a pause to the cost control element of the 2016 valuations, due to the uncertainty around member benefits caused by the discrimination ruling relating to the McCloud case.

Group Personal Pension Scheme

In addition to the NHS Pension Scheme, Phyllis Tuckwell operates a Group Personal Pension Plan. This plan is administered and invested with Aegon, with advice and support provided by Chase de Vere Independent Financial Advisers Ltd. It is a money purchase plan and all eligible employees are automatically enrolled after three months' service, unless they ask to join earlier. Contributions are on a matched basis of between 4% and 7.5%. Employees may contribute more to the plan. Membership of the plan entitles the employee to Life Assurance cover of 2.5 x annual earnings.

The Government subsequently announced in July 2020 that the pause had been lifted, and so the cost control element of the 2016 valuations could be completed. The Government has set out that the costs of remedy of the discrimination will be included in this process. HMT valuation directions will set out the technical detail of how the costs of remedy would be included in the valuation process. The Government has also confirmed that the Government Actuary was reviewing the cost control mechanism (as was originally announced in 2018). The review assessed whether the cost control mechanism is working in line with original government objectives and reported to Government in April 2021. The findings of this review did not impact the 2016 valuations, with the aim for any changes to the cost cap mechanism to be made in time for the completion of the 2020 actuarial valuations.

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20a Analysis of group net assets between funds (current year)

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General
Designated Fair value Restricted Endowment
unrestricted Total funds
funds reserve funds funds
funds
£ £ £ £ £ £
- - -
Tangible fixed assets 2,138,149 972,848 3,110,997
- - - -
Investment properties 115,000 115,000
Investments 3,943,761 14,000,000 - - 69,182 18,012,943
Net current assets 2,655,073 1,500,000 - 42,349 - 4,197,422
Net assets as at 6,713,835 17,638,149 - 1,015,197 69,182 25,436,362
31 March 2021
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20b Analysis of group net assets between funds (prior year)

----- Start of picture text -----
General
Designated Fair value Restricted Endowment
unrestricted Total funds
funds reserve funds funds
funds
£ £ £ £ £ £
- - -
Tangible fixed assets 2,341,987 1,024,793 3,366,780
- - - -
Investment properties 115,000 115,000
Investments 5,233,904 6,000,000 1,567,097 - 69,182 12,870,183
Net current assets 2,146,830 1,500,000 - 126,497 - 3,773,327
Net assets as at
7,495,734 9,841,987 1,567,097 1,151,290 69,182 20,125,290
31 March 2020
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21a Movements in funds (current year)

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Income and Expenditure At 31 March
At 1 April 2020 Transfers
gains and losses 2021
£ £ £ £ £
Endowment funds:
Jenabai Ebrahim Endowment Fund 69,182 22,830 (22,830) - 69,182
Total endowment funds 69,182 22,830 (22,830) - 69,182
Restricted funds:
- -
Building projects completed 801,647 (19,222) 782,425
-
Other capital items 223,146 17,251 (49,974) 190,423
Donations/Grants expended:
NHSE Covid hospice support - 2,749,351 (2,749,351) - -
Other government - 352,374 (352,374) - -
Covid support
NHS Hospice Home Support - 22,126 (22,126) - -
IPU 122,852 105,353 (226,005) - 2,200
-
Therapists 3,316 11,423 (7,226) 7,513
Care at Home/HCAH 329 269,378 (237,071) - 32,636
Living Well - 1,000 (1,000) - -
Total restricted funds 1,151,290 3,528,256 (3,664,349) - 1,015,197
Unrestricted funds:
Designated funds:
- -
Property fund 2,341,987 (203,838) 2,138,149
- -
Buildings development fund 6,000,000 2,000,000 8,000,000
- - -
Services development fund 1,500,000 1,500,000
- -
Operational plan fund 4,072,928 1,927,072 6,000,000
Fair value reserve 1,567,097 - - (1,567,097)
Total designated funds 11,409,084 4,072,928 - 2,156,137 17,638,149
General funds 7,495,734 9,530,769 (8,156,534) (2,156,137) 6,713,835
Total unrestricted funds 18,904,817 13,603,697 (8,156,534) - 24,351,984
-
Total funds 20,125,289 17,154,783 (11,843,713) 25,436,362
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21b Movements in funds (prior year)

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Income and Expenditure At 31 March
At 1 April 2019 Transfers
gains and losses 2020
£ £ £ £ £
Endowment funds:
Jenabai Ebrahim Endowment Fund 69,182 1,881 (1,881) - 69,182
Total endowment funds 69,182 1,881 (1,881) - 69,182
Restricted funds:
- -
Building projects completed 834,918 (33,271) 801,647
-
Special item donations 219,184 49,702 (45,740) 223,146
Donations/Grants expended:
- - - - -
NHS pension funding
NHS Hospice Home Support - 22,126 (22,126) - -
IPU 299 193,262 (70,709) - 122,852
-
Therapists 3,500 22,839 (23,023) 3,316
Care at Home/HCAH 23,121 217,312 (240,104) - 329
Living Well - 15,842 (15,842) - -
Total restricted funds 1,081,022 521,083 (450,815) - 1,151,290
Unrestricted funds:
Designated funds:
- -
Property fund 2,391,727 (49,740) 2,341,987
- - -
Buildings development fund 6,000,000 6,000,000
- -
Services development fund 2,000,000 (500,000) 1,500,000
Fair value reserve 3,525,327 - (1,379,701) (578,529) 1,567,097
Total designated funds 13,917,054 - (1,379,701) (1,128,269) 11,409,084
General funds 6,270,353 11,475,069 (11,377,957) 1,128,269 7,495,734
Total unrestricted funds 20,187,407 11,475,069 (12,757,658) - 18,904,818
-
Total funds 21,337,611 11,998,034 (13,210,354) 20,125,290
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Purposes of endowment funds

Jenabai Ebrahim Endowment Fund

The Jenabai Ebrahim Endowment Fund was donated by Professor Zef Ebrahim in memory of his mother. The income from this fund is used to support one of our In-Patient Unit rooms.

Purposes of restricted funds

Building projects completed

These are donations which have been specifically made to a number of building projects for the modernisation and expansion of the Hospice. All donations have been used as part of expenditure on the modernisation of the Hospice and are included in fixed assets. These appeals are now closed and the outgoings relate to depreciation.

Special item donations

These are donations made for specific items of equipment (fixed assets), which have been purchased in the year or are to be purchased in the coming year.

Donations/grants expended

Home Support - funding is received from the NHS to provide general, non-nursing support for patients and their families at home.

IPU - donations made to support the work carried out on our In-Patient Unit.

Therapists - donations made to support the provision of therapists.

Care at Home/HCAH - various donations received which are specifically restricted for care at home/ community care.

Living Well - donations made to support the provision of the Living Well services. Living Well services comprise our traditional day services as well as groups and outpatients.

Purposes of designated funds

Property fund

The property fund represents the net book value of tangible fixed assets that were purchased with unrestricted funds.

Buildings Development fund

This fund was established to accrue funds to assist with the costs of any new premises that may be required in the future. A review of the Hospice’s premises is being carried out following the rapid growth in recent years and the serviceability of current buildings. The fund has also been reviewed in the light of requirements for locality working.

Service Development fund

Before Phyllis Tuckwell introduces a new service or expands an existing service, the Trustees need to know that it can be funded for at least three years. This fund provides this financial backing, thereby speeding up the development of services. The balance at 31 March 2021 was £1.5 million based on the cost of services introduced over the last three years and budgeted for the next year, including Hospice Care at Home and locality working.

Operational Plan fund

This fund is to cover the investments in our general operating plan over the next four to five years. It will ensure the plan is adequately funded through a period of economic uncertainty.

Fair value reserve

This was a fund to set aside the unrealised gain on investments. The accounting standards no longer require the fair value reserve to be shown separately, as unrealised gains on investments are now included as part of the surplus or deficit for the year.

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22 Operating lease commitments

For the group and charity

The total future minimum lease payments under noncancellable operating leases is as follows for each of the respective periods:

23 Legal status of the charity

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

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Property Equipment
2021 2020 2021 2020
£ £ £ £
Less than one
322,782 345,780 2,295 6,372
year
One to five years 659,158 933,333 2,808 4,158
Over five years - 31,146 - -
Total 981,940 1,310,259 5,103 10,530
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Sarah Church, Chief Executive

Phyllis Tuckwell, Waverley Lane, Farnham, Surrey, GU9 8BL Phyllis Tuckwell Memorial Hospice Ltd. Limited by Guarantee. Incorporated in England and Wales. Registered No. 1063033 Registered Charity No. 264501 Copyright ©PT 2021