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2021-03-31-accounts

Annual Report and Accounts 2020/21 (•) Dorothy lo House HOSPICE CARE

Annual Report and Accounts 2020/21

2 Dorothy House

Contents

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Trustees’ and Strategic Report 3
Introduction 4
Objectives and Activities 5
Achievements and Performance 7
Financial Review 10
Plans for the Future 11
Structure, Governance and Management 12
Reference and Administrative Details 15
Independent Auditor’s Report to the Members 17
Financial Statements 21
Consolidated Statement of Financial Activities 22
Group and Parent Charitable Company Balance sheet 23
Consolidated Cash Flow Statement 24
Notes to the Financial Statements 25
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DOROTHY HOUSE

(formerly THE DOROTHY HOUSE FOUNDATION LIMITED)

Company number: 1360961 Charity registration: number 275745 Principal address: Winsley, Bradford on Avon, Wiltshire BA15 2LE

The Trustees (who are directors of the Charity for the purposes of the Companies Act) present their report together with the financial statements of the Charity for the year ended 31 March 2021.

The financial statements comply with current statutory requirements, the Memorandum and Articles of Association and SORP 2019.

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Trustees’ and Strategic Report

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Introduction

“It was the best of times, it was the worst of times…” Dickens – A Tale of Two Cities

It would be easy to just focus on the challenges of last year; the COVID-19 pandemic, social distancing, lockdowns, funding concerns and how to continue providing our vital palliative and end of life care.

But faced with adversity, we chose innovation. We adapted, we achieved and we learned. With the onset of COVID-19, we modified our services swiftly so we could continue to support our patients, their families and carers. Working closely with our community health and social care partners, we supported the NHS directly, including increasing our capacity by opening a temporary second ward at Winsley for ‘step down’ patients from our local acute hospital and running an anti-body testing centre in Summer 2020.

The pandemic has helped expedite much greater collaboration between Dorothy House and our health and social care partners, most notably through our work with NHS colleagues and fellow hospice providers as part of the B&NES, Swindon and Wiltshire (BSW) Partnership, now an integrated care system (ICS). With the majority of our geography in the BSW area, Dorothy House and neighbouring hospices have played a leading role in setting the future direction for palliative and end of life care locally.

COVID-19 and its impact, the need to progress our ambitious Strategic Plan and ongoing changes in the wider health and social care system were three key reasons to start a review of our services in the autumn of 2020. Our vision for a new model of care at Dorothy

House was approved by the Board of Trustees in December 2020 and we are now working on the design and operational detail, and changes needed to our services to realise this vision.

Delivering our new care model is an exciting opportunity for Dorothy House and a natural evolution of our work. It will enable us to use our staff expertise in the right way, retaining the “best of what we do” but also adapting to future need, using the learning from new working practices adopted during the pandemic. It will help us to prepare for future population and financial challenges and ensure our services are fit for the future, meeting the expectations of patients, their families and carers as well as commissioners and external stakeholders. Measuring the impact and success of our new model of care will lie at the heart of all our planning.

At the start of the pandemic, we moved quickly to shore up our finances in the face of a significant decline in our fundraising and retail income, always maintaining our strong governance structures. With huge thanks to our community’s continued generosity, local NHS commissioners and emergency funding from the Government, including a series of grants for loss of income via Hospice UK, the Job Retention Scheme and the Retail, Leisure and Hospitality Grant Fund, we stabilised our financial position.

As the first lockdown finished and we moved, temporarily, into a ‘new normal’ before returning to lockdown in January this year, we have inevitably seen a very different set of financial themes to previous years. While retail income and some fundraising areas came to

an abrupt halt during lockdowns, clinical income from the NHS has increased over the year, along with Trusts and Individual Giving income. In spite of ever-changing times, we have finished the year in a stronger financial position than budgeted and this will help us to roll out our new model of care.

After a year of turmoil, we look to the future and we feel optimistic about our direction. We are focused on our plans to revive and thrive as we emerge from the pandemic and person-centred care will remain at the heart of all we do. Despite uncertainty over the longerterm impact of COVID-19, we have demonstrated our agility over the last year and we will continue to adapt, plan and invest in developing our services for the future.

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Objectives and Activities

Overall purpose

“The objects for which the Charity is established are, for the public benefit, to promote by such charitable means as the Trustees shall from time to time think fit the relief of sickness among people suffering from any chronic or life limiting illnesses of any description through the provision of treatment, holistic care, financial assistance, support, education and practical advice for such individuals, their families, dependants and carers and to advance the education of the general public in all areas relating to such conditions.”

Dorothy House, Objects, Articles of Association – Revised 2018, approved by Charity Commission and adopted by Trustees’ Resolution 26 March 2019

Main activities

The following is a list of the services we provide in the community or at Winsley, some of which have been adapted in light of COVID-19. Since 2020, people can now self-refer to Dorothy House. Following an initial conversation and with the patient’s consent, we will contact the patient’s GP to get the up-to-date information we need to provide the right care.

All these services help us to achieve our overall purpose and objectives and provide the best care we can for patients, their families and carers. In FY20/21 we cared for more than 3,000 patients, their families and carers, with people accessing one or more of our services below including some of our open access day services, where a formal referral is not required.

(Further details of our services can be found in our annual Quality Account, prepared for our NHS partners.)

Medical Service: Our doctors deliver care and professional advice at the Dorothy House Inpatient Unit, in the community and at the Royal United Hospital (RUH), Bath. They also provide support to community colleagues via Consultant Connect.

Inpatient Unit - Specialist Palliative Care: 10-bed specialist unit at Dorothy House, Winsley

24hr Advice Line: Clinical advice and support for patients, their families/carers and professional colleagues about any palliative and/or end of life care issue, irrespective of a person’s diagnosis or whether they are known to us.

Community Nurse Specialists (CNSs): Supporting patients and their families with and in the community, closely aligned to the NHS’s Primary Care Networks (PCNs), GP surgeries and District Nursing teams

Hospice at Home: Experienced healthcare assistants providing respite, crisis and end of life care – day and night – within homes or residential care settings.

Therapies including:

During the pandemic we have continued to provide assessments and support to patients over the phone, via video consultation, online group work

and supported patients and clients in their own home or via the Inpatient Unit.

Family Support Services providing access to:

During the pandemic we have supported people remotely using telephone or video consultation and seen people in person, where necessary.

We have launched a new Spiritual Strategy; the intent is to “shine a light out into our communities,” providing more support in partnership with local faith leaders.

Day Services: Prior to the pandemic, Day Services included a nurse-led service and a growing range of informal wellbeing, relaxation, exercise and social groups across our area. At the current time, with COVID-19 restrictions still in place, Day Services include regular nurse calls to review symptoms/ medication, one-to-one online consultations, access to online group exercise sessions and individual outpatient appointments or home visits, as necessary.

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Education, Research & Professional Development: As a key pillar of Dorothy House services, we offer:

Level 3 – Generating and leading research

Level 2 – Engagement in research activities generated by others

Level 1 – Awareness of research

Source: Payne and Turner, 2012

Dorothy House continues to develop its resources in palliative and end of life care for health and social care colleagues in the community, particularly in light of the COVID-19 pandemic. These include downloadable guides and videos on subjects such as Advance Care Planning, symptom control, bereavement and loss.

Volunteering: Volunteers are vital to Dorothy House and the pandemic has made it a challenging year. Some have been stretched to capacity, supporting additional and existing services, and some have been unable to perform their usual roles because of temporary service closures or lockdown restrictions.

As at the end of FY20/21, our volunteer figures numbered 376 in Hospice/Community roles and 618 in Retail, making a current total of 994 volunteers.

Much of our work over the last year has been delivered online and the volunteer teams have successfully adapted, as demonstrated in the following ways:

Looking to the future, we are working to develop our volunteer model as part of the wider Services Review that is currently ongoing.

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Achievements and Performance

The following are key achievements, resulting from our annual objectives and linked to our strategic goals. Annual objectives were approved by the Trustees in March 2020 and set out in the Annual Report FY19/20.

1. Ensure that Dorothy House has a clearly managed response to meet the current and future needs of our community during the COVID-19 pandemic.

Throughout the COVID-19 pandemic in 2020, we continued to deliver every aspect of our care, albeit with some adaptations in line with Government guidelines. The wearing of PPE, infection control procedures and social distancing measures were swiftly put in place across our services in March 2020. For some of our care, including day services, counselling and therapies, we provided on-line / telephone provision of support where possible to minimise face-to-face contact and risk to patients, their families and staff and volunteers.

Our website was updated regularly with any changes to our services including IPU visiting rules and we communicated adaptations specifically with key clinical stakeholders (including GP referrers) by regular email bulletin.

We continue to provide resources for professionals on our website and during the first stages of the pandemic, we provided a series of webinars to support care home staff on key areas such as Advance Care Planning.

Specific new areas of support to the NHS and to our community during the pandemic included the creation of a temporary ward for ‘step down’ patients from our local acute hospital, providing nursing and rehabilitation care to keep more hospital beds available for those with

COVID-19. We also provided an anti-body testing centre for the community from July – October 2020.

Working innovatively with our partners, we introduced the use of a disposable, single-use elastomeric infusion pump to administer medications to palliative patients discharged home from the Hospice’s Inpatient Unit. This helps ensure no interruption to medication and safeguards syringe driver supplies. Dorothy House has trained its clinical staff and Virgin community teams in this procedure.

2. People: Ensure that Dorothy House has a

well-led, enabled and empowered workforce (of staff and volunteers) with the skills and competence to meet the current and future needs of our community.

Supporting the staff and volunteers of Dorothy House was, and continues to be, vital during the pandemic. Every member of the workforce has had to cope with some sort of adaptation to their working life, including changes in work practice, a reduction in their ability to work, the use of PPE, working from home or going on furlough. Added to this, two valued members of staff died unexpectedly (unrelated to COVID-19) during the year, bringing an additional level of stress and grief to parts of the workforce.

Recognising the phenomenal changes experienced by everyone, Dorothy House set out to increase and enhance our internal communications. This has included a weekly email and video from the Chief Executive to staff and volunteers. Additionally, monthly Coffee

Mornings, meetings and catch ups were moved online, as far as possible, and regular communication updates were arranged for furloughed staff who numbered 163 at the height of the pandemic.

Mindful of the challenges of working from home and/ or operating largely online, Dorothy House set up a Wellbeing Programme with resources and activities for staff and volunteers to access.

Following the Services Review, the clinical senior management team has been restructured to allow for the roll out of our new model of care.

As part of our ongoing commitment to developing and supporting our workforce, in-house coaching was made available to staff from January 2021, with a trained coaching pool ready to support colleagues.

3. Governance: Ensure all aspects of Dorothy House practices exceed statutory requirements.

In 2020, Dorothy House employed a specialist function to review charity governance practices, implement planned improvements and horizon scan for emerging best practice in the sector. Attention has focused on translating strategic governance into a practical tool which underpins and supports operational activities, including adopting changes to the Articles of Association to ensure they are fit for purpose and future proof, reviewing and updating the Governance Handbook and renewing energy on Board training and development, and the charity governance code.

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Dorothy House is committed to meeting the highest standards in all areas of governance, including clinical and information, to ensure our beneficiaries, supporters and the general public can have trust and confidence in us. In March 2021, we received Cyber Essentials Plus certification. This Government-backed scheme helps protect organisations against a whole range of the most common cyber attacks and demonstrates a strong commitment to cyber security.

The Audit Committee’s remit has also been expanded to give greater focus on all areas of governance, including clinical governance, to provide greater assurance to the Board of Trustees.

Operating under new guidelines, our relationship with the Care Quality Commission remains strong and managed through monthly liaison meetings between the CQC relationship manager and our Registered Manager.

4. Our community: Ensure that Dorothy House understands and can meet the palliative and end of life care needs of our community as articulated in the 2018-25 Strategic Plan.

We have and will continue to develop our understanding of the palliative and end of life care needs of our community.

At the beginning of the Services Review we conducted an extensive Listening Project which analysed the results of previous and new research/feedback from patients, families, carers, stakeholders and the wider community, including changes to our care in light of the pandemic.

Some of the common themes which arose from this analysis have been key to the development of our vision for a new model of care.

The needs of our community must always underpin the care and support that we provide. As the Services Review working groups now develop the operational detail of each service, the starting point will always be an identification of need and how we will measure the success of our care. Accordingly, we are developing a new User Group to test our thinking and planning on an ongoing basis.

Now mid-way through the life of our Strategic Plan, our anticipation is that the roll out of our new model of care will enable us to more easily meet our strategic goals and achieve our accompanying Key Organisational Outcomes.

5. Financial sustainability: Ensure delivery of year

three of the 2018-25 Strategic Plan by developing and implementing an effective 2020/21 financial plan that is achievable and sustainable.

Our continued aim is to reduce our reliance on uncontrollable income streams, such as investments and legacies, and as such we have increased our income from yearly, regular NHS commissioned sources by 3.7%. We have received additional NHS monies for support provided during the pandemic and in September 2020, our Hospice at Home Team started to deliver extra care to complex patients in our Wiltshire area through a separate NHS Continuing Health Care Fast-Track (CHC FT) contract made with local NHS Commissioners.

Understandably, over the year Fundraising saw a change in income trends with a decline in community, challenges, corporate and events funding but growth in appeals, trusts and lottery funding as well as regular and individual giving. We have worked hard to bring challenges and events online which made a significant contribution towards the end of the year. A 16.8% increase in fundraising income (excluding legacies) on the prior year is testament to the hard work and agility of the team and, crucially, the loyalty and strength of support from our community.

We have also focussed on income streams that could continue during the pandemic. For example, in November we launched our online retail clothing store: dorothyhouse.shop. This venture expanded our reach beyond our local high street and provided continued trading through lockdown. Over the year, we also saw a significant increase in online sales for Ubiety - our luxury body and home fragrance range - and we are exploring opportunities for wider distribution, geographically.

Despite the closure and then limitations around retail operations this year, our goal was not to lose money in this area. Retail was re-organised and streamlined, opening hours reduced, the furlough scheme used and rent concessions negotiated and gratefully received to achieve a cost saving of £750k.

Cost savings were also achieved through the vacating and sub-letting of our two former Outreach Centres.

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6. Partnership: Identify “strategic alliances” and partnerships that ensure delivery of Key Organisational Outcomes.

The outbreak of the pandemic has necessitated and facilitated much closer alliances and partnershipworking, both strategically and operationally.

As part of the NHS’s emergency planning, we worked with health and social care colleagues in key areas such as capacity planning and discharge from hospital, and we took part in Gold Calls, involving the leaders of major NHS service providers, to ensure a joined-up approach.

We worked with Medvivo to provide an antibody testing service at Winsley, in Summer 2020 and we sub-let our former Outreach Centre in Peasedown St John to 3SG to enable them to provide a coordinated volunteering offer to the community.

In September 2020, B&NES, Swindon and Wiltshire NHS Clinical Commissioning Group (BSW CCG) started working with Dorothy House, Salisbury and Prospect Hospices in new ways to co-develop a system wide strategy for palliative and end of life care. Most recently, the creation of the BSW Partnership, an integrated care system (ICS), is bringing together health and social care organisations in the area to make a huge difference to delivery of this end of life strategy and in turn, our own strategic goals.

Further partnerships with specific providers continue; including with SWALLOW (a user-led learning disabilities charity) as we roll out a joint, reciprocal palliative and learning disabilities education programme and with our

RUH colleagues with the introduction of a Progressive Lung Disease Clinic. During the pandemic we have worked in partnership with local charity We Hear You (WHY) to co-host a friendly online social group - Coffee Connections - aimed at those affected directly or indirectly by cancer or a life-limiting illness.

7. Research and education: Create education and

research links that enhance our own and other organisations’ ability to deliver and evidence outstanding palliative and end of life care.

Under the leadership of Professor Candy McCabe, Dorothy House has developed its education and research capability significantly over the year. Both teams have grown and been restructured to connect more deeply with internal colleagues and external partners.

FY20/21 saw the development of Dorothy House’s first Research Strategy as we move to becoming a research-active organisation. Projects in areas such as chronic pain for palliative patients and a citizen science project on post COVID-19 perceptions of death and dying have seen us further develop our partnerships with organisations including the University of the West of England (UWE), the Royal United Hospital and Bristol Health Partners Chronic Pain Health Integration Team. We are exploring collaborative opportunities with Marie Curie and have forged stronger links with research funding partners including the Regional Clinical Research Network, BSW Research Hub and various trusts and grants organisations.

In addition to our internal training programmes, the Education Team delivers education to external colleagues including the post graduate UWE Complexities of Supportive End of Life Care Module. The team is working in partnership with learning disability charity SWALLOW to deliver a reciprocal education programme and with B&NES Council to develop an education programme for nursing home staff. We are also collaborating with BSW Education Hub and Somerset CCG to develop online training resources.

Capturing the impact of our research activities and education programmes on palliative and end of life care is critical for all participants and we are developing a set of measures as part of our Key Organisational Objectives.

Measuring and assessing our impact

In order to chart Dorothy House’s progress over the life of the 7 year Strategic Plan, we are using a set of Key Organisational Outcomes (KOOs) linked to the 5 strategic goals against which we measure our performance on an ongoing basis. These KOOs lie at the heart of our planning and development of a new model of care.

Dorothy House continually monitors the effectiveness of its services so that we can keep improving the care we provide to patients, their families and carers. We do this through clinical audit, patient/carer feedback and evaluation and specific service reviews.

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Financial Review

Faced with the onset of COVID-19, national lockdowns and enormous pressure on hospitals and GPs, our first priority was to provide help through additional capacity through inpatient beds and in the community.

Our second priority was financial; to protect our cashflow where we could. Key financial objectives were to enable funding of this additional care, take advantage of all Government support available, aim not to lose money from Retail, develop targeted appeals and make cost savings around non-strategic priorities. Helped by £741k growth in the value of our investments, we succeeded in delivering a surplus of £1,366k (2020: £1,000k deficit) and positive cashflow of £4,122k (2020: £1,793k outflow) including a CBILS (Coronavirus Business Interruption Loan Scheme) loan repayable in June 2021 of £1,750k. At year end, we held unrestricted and undesignated funds of £4,312k (free reserves). This is in line with our policy of a risk-based assessment of minimum reserves.

Income grew by £824k (2020: £1,128k) to £14,490k. Government grants amounted to £5,152k (2020: £717k) including the furlough scheme (£1,242k), Retail, Leisure and Hospitality Grants (£311k) and NHS restricted funding via Hospice UK of £3,442k. These substantially offset the dramatic £3,525k reduction in trading activities including retail and fundraising events (2020: £134k decline) but are not expected to continue beyond April 2021. It is also reassuring to note that as at end of May 2021, Retail trading is recovering to pre-pandemic levels.

Costs of raising funds reduced by £231k (2020: £25k decrease). Two retail shops in Bath were vacated and savings were offset by increase in dilapidation reserves

to better reflect our reinstatement liabilities. Charitable activities costs reduced by £233k (2020: £244k reduction), primarily due to a reduction in some day services and the vacating of our two Outreach Centres.

The financial position of the Charity is set out in the attached financial statements.

Investment Policy

The Charity has the power to make any investments which the Trustees see fit. In applying this, the Trustees have formulated and approved an Investment Policy. Day-to-day management of the investments is delegated to external advisor (Rathbones), who invest a proportion of the Charity’s funds in equity, fixed interest and other funds within guidelines set by the Trustees. The external advisors are prohibited from investing funds directly in tobacco companies, are guided on the amounts that can be invested in one institution and in the proportion of cash that can be held in relation to other investments.

Rathbones continues to deliver growth on our investments in the long-term and exceeds benchmark expectations. We remain confident in Rathbones’ ability to deliver returns in excess of market based benchmarks in the long term.

Key Risks and Uncertainties

Following best practice guidelines, including those of the Charity Commission, Dorothy House constantly reviews all risks through its Assessment and Risk Management Register (ARMR) database. It is key that risk is owned and understood at all levels within the Charity.

High level risks identified within FY20/21 were as follows:

Pandemics: Although pandemics have always been on our risk register, COVID-19 has had a far greater impact than anyone could have envisaged, affecting every aspect of what we do. We immediately responded to this by creating a COVID-19 Committee: a reduced group of six Board members including the 3 honorary officers, Board Subcommittee Chairs and an engagement specialist. The terms of reference were approved by the Board on 9 April 2020. This group met fortnightly with the Executive Team until August 2020 and was empowered to make swift decisions whilst retaining appropriate governance.

Income: This includes fluctuations in Fundraising (including legacy) and Retail income. It also includes the risks we face from a changing commissioning landscape through a move from local Clinical Commissioning Groups (CCGs) to larger Sustainability Transformation Partnerships (STPs) and Integrated Care Systems. While challenging, this situation presents us with an opportunity to lead the development of palliative and end of life care for a larger population in partnership with local hospices.

Investment Returns: Every year, the returns from investments are a large contributor to the Charity’s overall performance and as such are always a significant risk factor. Investment performance is regularly reviewed and an active relationship maintained with the external advisors to mitigate investment risk.

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Plans for the Future

Corporate Governance, Information Governance and

Cyber Security: Review and improvement in these areas have been key objectives this year and our progress is detailed in that section of the report. This has refreshed our focus on ensuring outstanding governance for Dorothy House.

With Recruitment of skilled staff to deliver care: an ageing workforce the recruitment of appropriate staff is increasingly important and challenging, given a competitive recruitment market at a time when health and social care staff are re-evaluating their career options, exhausted from having worked through the pandemic and less likely to take on new challenges and risks. Employment at Dorothy House is viewed as hugely rewarding and extremely fulfilling by its workforce and, aligned to a fair salary and comprehensive training and education support, we are focused on attracting the calibre of staff our patients and their families require to meet their needs both now and in the future.

Information on Fundraising Agreements with Third Parties (as required by the Charities Act 2016)

Dorothy House continued to work with Local Hospice Lottery, a wholly owned subsidiary of Farleigh Hospice. Activities were monitored by Dorothy House through regular meetings.

There were 2 complaints registered in FY20/21. Both related to fundraiser activity and both complaints were upheld. They were RAG rated as Amber and Green respectively.

All complaints were resolved satisfactorily. The Local Hospice Lottery adheres to the Institute of Fundraising guidelines for dealing with vulnerable people.

Reserves Policy

Dorothy House holds reserves to safeguard the financial security and operations of the organisation in the event of a severe situation where our income significantly fails to meet our expenditure.

In FY18/19 we moved to a risk-based reserves methodology to calculate the ‘free’ reserves amount we should hold. Each year the Trustees review the policy for maintaining free reserves, taking into consideration the major risks faced by the Charity in the following year to both income and planned expenditure and an assessment of ways to mitigate these. The resulting minimum free reserves to be held was set at £3.7m for FY 20/21and £4.2m for FY21/22.

As at 31 March 2021, our Designated Funds comprised Tangible Fixed Assets of £7.4m and Service Development of £2.9m. Our Free Reserves/General Funds totalled £4.3m including a £1.8m legacy volatility reserve.

We are confident that the Charity’s minimum reserves level are set at an appropriate level given the ongoing extraordinary situation of the COVID-19 pandemic and allowing for continued uncertainty in funding streams including investments, legacies, Retail and Fundraising.

Organisational objectives for FY21/22 are listed below and linked to our strategic goals.

People who need our care: To ensure that Dorothy House understands and can meet the palliative and end of life care needs of our community, as articulated in our 2018-25 Strategic Plan and in the emerging NHS landscape. Aspiring to double the number of people who have access to outstanding palliative and end of life care by 2025 is essential, ambitious and will require the designated service development reserve as we increase expenditure.

Research and education: To deliver education and research strategies that enhance our own and other organisations’ ability to deliver and evidence “outstanding” palliative and end of life care.

To deliver the above requires us, in turn, to meet the following enabling objectives:

Our people: Recruiting and retaining the highest calibre of staff and volunteers that are well led, enabled and empowered

Governance and finance: Ensuring best practice and sustainability to deliver our Strategic Plan

Partnership: Identifying and developing alliances and partnerships to deliver our Strategic Plan

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Structure, Governance and Management

Governing Documents and Structure

Dorothy House was founded in 1976 by a Trust Deed and incorporated in 1978 as a company limited by guarantee, not having share capital (company number 1360961).

The Charity is governed by a Board of Trustees, the conduct of which is governed by the Articles of Association. The Articles of Association, have been updated a number of times since the formation of the company and in 2018 were fully reviewed and redrafted to ensure conformity with best practice and to reflect recent changes to the Companies Act. The Articles were amended in 2020 to ensure Trustee terms of office were in the best interests of the Charity. Dorothy House is a charity registered with the Charity Commission in England and Wales, registration no. 275745.

In order to sell bought in goods as part of the retail operations or other profit making ventures, the Charity has a wholly owned trading subsidiary, Dorothy House Trading Ltd (Reg. Company no: 2259911). The Charity’s Trustees appoint the Directors of the subsidiary company and all of its profits are remitted to its parent.

A schedule of delegated powers allows the Trustees to devolve certain activities and decisions to the board committees on which they sit, the Chief Executive and the Executive Team. While main board and most committees meet quarterly, the Executive Team meets formally monthly. The Board of Trustees is supported by the following committees:

Public Benefit

The Charities Act 2011 explicitly includes public benefit in the definition of a charitable purpose, which every charity must have. The Act sets out 13 different charitable purposes, of which Dorothy House meets 3: 1. The advancement of health 2. The relief of those in need by ill health or disability; and 3. The advancement of education.

In reviewing our aims and objectives, we have referred to the Charity Commission Guidance on Public Benefit. In particular, all of the services provided to patients and their families are free of charge and education programmes are provided for health and social care

professionals in order to promote excellence in end of life care.

Trustees: Recruitment and Appointment

The Charity adheres to a governance handbook which sets out our approach to governance, including how we recruit and select Trustees. This handbook is reviewed and refreshed regularly. The handbook was last updated in March 2021.

The members of the Charity are automatically members of the Board and Trustees, and there must be at least five and not more than 15 Trustees at any time. The term of office is three years, and a member can serve up to three consecutive terms. No Trustee shall serve beyond three terms unless Trustees unanimously consider it would be in the best interests of the Charity. The names of the Trustees in this year are set out on page 15. During FY20/21, Trustee attendance at Board meetings was over 86% and at standing committee meetings it was over 90%. In March 2020, the Board of Trustees established the COVID-19 Committee in response to the crisis. This committee met eight times, up to August 2020.

The Governance Committee leads Trustee succession planning and is responsible for the recruitment, appointment and induction of new Trustees. Trustee vacancies are advertised externally to support equality of opportunity and recruited through interview. We have a skills-based approach to recruitment, regularly undertaking ‘skills audits’ of our Board of Trustees. Each vacancy is reviewed to ensure the Board has a wide representation of skills and experience reflecting the needs of the organisation. Our Board composition

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is reflective of the community in which we serve and our Equality, Diversity and Inclusion Policy applies to trustees, employees and volunteers

Trustees: Induction and Training

There is a core induction programme for new Trustees, accompanied by the governance handbook which incorporates statutory, regulatory, financial and specialist sector information and clearly sets out Trustee’s responsibilities. Additionally, the Chair/Vice Chair hold annual evaluations. These are an opportunity for Trustees to meet individually and discuss performance and development. This process enables the charity to respond more effectively to the needs of Trustees and ensure they feel supported and fully equipped to discharge their duties.

The approach to Trustee training and development has been reviewed in line with sector best practice in 2020. Trustees are now offered a mix of internal, online and face-to-face training, ranging from refresher training on the six key legal duties, to sector/operational specific training through a variety of resources.

Charity Governance Code

Committed to continuous improvement in its governance, Dorothy House has adopted the Charity Governance Code (CGC) since 2018 as a tool to regularly assess itself against best practice and identify areas for improvement.

The Board strives to evaluate itself annually, with an external facilitated evaluation every three years. In FY20/21, Trustees participated in a focused workshop to the refreshed CGC principles of Integrity and Equality,

Diversity and Inclusion, using the NCVO’s governance wheel assessment tool. This has resulted in a Board development action plan. The action plan will be monitored by the Governance Committee and reported to the Board. In addition, at the end of each Board meeting, a different Trustee evaluates the meeting. The Governance Committee then reviews and recommends any actions.

Senior Management Team Remuneration Policy

The Trustees consider that the Executive Team are the key management personnel of the Charity, in charge of directing and controlling, running and operating the Charity on a day-to-day basis. All Trustees give of their time freely and no Trustee received remuneration in the year. Details of Trustees’ expenses and related party transactions are disclosed in note 6 to the accounts.

The pay and remuneration of the key management is set out in note 5 to the accounts. Remuneration levels are reviewed annually and approved by the Remuneration Committee. This committee is chaired by the Chair of the Board of Trustees.

The principles used when determining the pay and remuneration are:

While maintaining confidentiality, any noteworthy considerations that would impact on pay should be brought to the Remuneration Committee’s attention by either the CEO (Executive Directors) or Chair (Chief Executive);

When determining pay, a number of considerations are necessary, for example, but not exhaustive:

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Trustees’ Responsibilities for the Financial Statements

Company law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the Charity’s financial activities during the year and of its financial position at the year end. In preparing these financial statements the Trustees should follow best practice and:

The Trustees are responsible for keeping accounting records which disclose, with reasonable accuracy, the financial position of the Charity and ensuring that the financial statements comply with applicable laws. They are also responsible for safeguarding the assets of the charity and for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the Trustees are aware, there is no relevant audit information of which the organisation’s auditors are unaware and the Trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information.

This report, incorporating the Strategic Report, was approved by the Trustees, in their capacity as company directors and signed on their behalf by:

Kate Tompkins Chair of Trustees

Date

Annual Report and Accounts 2020/21

15 Dorothy House

Reference and administrative details

Trustees in the period

Registered Name: Dorothy House Working name: Dorothy House (DH) Registered Company Number: 1360961 Registered Charity Number: 275745 Registered and Principal Address: Winsley, Bradford on Avon, BA15 2LE, UK

Trustees in the period
B, D, E (Chair), F (Chair) Kate Tompkins Chair of Board of Trustees
A (Chair), C, G Christine Davis
B (Chair), E, F Diane Hall Resigned 30.06.20
B, E, F, G Ian Laferty Vice Chair of Trustees
B (Chair), D Brian Mansfeld Chair of B from 15.12.20
A, C Simon Burrell
D (Chair), E Warren Reid
C, F David Cavaliero
B Charlotte Parkin Resigned 22.09.20
A, B Mark Hunt Resigned 26.03.21
A Francesca Thompson
D, F Josette Crane Resigned 15.12.20
A, C (Chair) James Gare Treasurer – 30.06.20
Joined B, F & E – February
2020
Left A – April 2020
D, A Stephen Taylor Appointed 24.03.20
B, A Nathan Baranowski Appointed 26.02.21

Annual Report and Accounts 2020/21

16 Dorothy House

Commitees

Commitees
A Member of Patient and Family Services
Committee
B Member of Finance and Performance
Committee
C Member of Audit Committee
D Member of People and Development
Committee
E Member of Remuneration Committee
F Member of Governance Committee
G Director of Dorothy House Trading Ltd

Executive Team

Wayne de Leeuw Chief Executive
Tony De Jaeger (G) Deputy CEO and Director of Finance
Dr Emma Frampton Medical Director (appointed 12.02.21)
Ruth Gretton Director of Nursing (retired 14.08.20)
Maggie Crowe Director of Patient & Family Services
(appointed 03.08.20)
James Byron Director of Marketing and Engagement
Tony Rees Interim Director of People & Services
Principal Bankers HSBC, Bristol, NatWest plc, Bath
Auditor Bishop Fleming LLP, Bristol
Investment Advisers Rathbones, London
Solicitors Thrings, Swindon Bath
Royds Withy King, Bath
Stone King, Bath
Adviser to Finance & Simon Coombe
Performance Committee Charlotte Parkin
Director of Dorothy Jonathan Newbound
House Trading Ltd

Annual Report and Accounts 2020/21

17 Dorothy House

Independent Auditor’s Report to the Members

Annual Report and Accounts 2020/21

18 Dorothy House

Opinion

We have audited the financial statements of Dorothy House (the ‘parent charitable company’) and its subsidiary (the ‘group’) for the year ended 31 March 2021 which comprise the Consolidated Statement of Financial Activities, the Consolidated Balance Sheet, the parent charity Balance Sheet, the Consolidated Statement of Cash Flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ (United Kingdom Generally Accepted Accounting Practice).

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 Auditors’ responsibilities for the

audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group’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 Trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and

our Auditors’ Report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we

do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the parent charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Annual Report.

We have nothing to report in respect of the following matters in relation to which we to report to you if, in our opinion:

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19 Dorothy House

Responsibilities of trustees

As explained more fully in the Trustees’ Responsibilities Statement, the Trustees 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.

Auditors’ responsibilities for the audit of the financial statements

We have been appointed as auditor under the Companies Act 2006 and report in accordance with this act.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors’ 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 is detailed below:

As a result of these procedures, we have considered the opportunities and incentives that may exist within the organisation for fraud and identified the highest area of risk to be in relation to revenue recognition, with a particular risk in relation to year-end cut off. In common with all audits under ISAs (UK) we are also required to perform specific procedures to respond to the risk of management override.

We have also obtained understanding of the legal and regulatory frameworks that the charity operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies and Charities Act and FRS 102 (SORP). In additions, we considered the provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the parent charitable company’s ability to operate or avoid a material penalty.

Our procedures to respond to risks identified included the following:

Annual Report and Accounts

20 Dorothy House

We also communicated identified laws and regulations and potential fraud risks to all members of the engagement team and remained alert to possible indicators of fraud or non-compliance with laws and regulations throughout the audit.

As a result of the inherent limitations of an audit, there is a risk that not all irregularities, including a material misstatement in financial statements or non-compliance with regulation, will be detected by us. The risk increases the further removed compliance with a law and regulation is from the events and transactions reflected in the financial statements, given we will be less likely to be aware of it, or should the irregularity occur as a result of fraud rather than a one off error, as this may involve intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/ auditorsresponsibilities. This description forms part of our Auditors’ 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. Our audit work has been undertaken so that we might state to the Trustees those matters we are required to state to them in an Auditors’ 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 its members, as a body, for our audit work, for this report, or for the opinions we have formed.

Joseph Scaife FCA DChA (Senior Statutory Auditor) for and on behalf of Bishop Fleming LLP Chartered Accountants Statutory Auditors 10 Temple Back Bristol BS1 6FL

Date:

Annual Report and Accounts

21 Dorothy House

Financial Statements

Annual Report and Accounts 2020/21

22 Dorothy House

Consolidated Statement of Financial Activities including Income & Expenditure Account For the Year Ended 31 March 2021

Note Unrestricted Funds Restricted Group Group
Unassigned Designated Funds 2021 2020
£
£		 £ £ £
Income and endowments from:
Donations, Grants and Legacies 3B 5,152,733 - 3,695,297 8,848,030 4,441,312
Charitable activities 3/12 2,962,522
-		 - 2,962,522 2,961,896
Other trading activities 3A 2,591,292
-		 - 2,591,292 6,116,545
Investments 88,091
-		 - 88,091 146,288
Total income and endowments 10,794,638
-		 3,695,297 14,489,935 13,666,041
Expenditure on:
Raising funds 4 (5,170,057) - - (5,170,057) (5,400,773)
Charitable activities 4/12 (4,999,465) - (3,695,297) (8,694,762) (8,927,655)
Total expenditure (10,169,522) - (3,695,297) (13,864,819) (14,328,429)
Net income/(expenditure) before investment gains/(losses) 625,116 - - 625,116 (662,388)
Net gains/(losses) on investments 9 741,381
-		 - 741,381 (337,574)
Net income/(expenditure) 4 1,366,497 - - 1,366,497 (999,962)
Transfers between funds (117,862) 117,862 - - -
Other recognised gains/ (losses) - - - - -
Net movement in funds 1,248,635 117,862 - 1,366,497 (999,963)
Reconciliation of funds:
Total funds brought forward 3,063,805
10,158,728		 - 13,222,533 14,222,496
Total funds carried forward 4,312,440
10,276,590		 - 14,589,030 13,222,533

The above results relate wholly to continuing activities; there were no other recognised gains or losses in the year. The accompanying accounting policies and notes form an integral part of these financial statements.

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23 Dorothy House

Consolidated and Charity Balance Sheet at 31 March 2021

Note
Fixed assets
Tangible fxed assets
8
Investments - subsidiary
2
Investments - portfolio
9
Current assets
Stock
2
Debtors
10
Cash at bank and in hand
Liabilities
Creditors: falling due within one year
11		 At 31 March 2021
At 31 March 2020
Group
Charity
Group
Charity
£
£
£
£
7,396,031
7,388,601
7,706,745
7,690,902
-
2
-
2
4,392,947
4,392,947
3,593,361
3,593,361
11,788,978
11,781,550
11,300,106
11,284,265
35,784
-
50,916
-
2,087,719
2,126,363
2,620,659
2,653,478
4,625,460
4,590,660
589,351
574,176
6,748,963
6,717,023
3,260,926
3,227,654
(3,948,911)
(3,924,332)
(1,330,018)
(1,295,693)
Net current assets 2,800,052
2,792,691
1,930,909
1,931,961
Total assets less current liabilities 14,589,030
14,574,241
13,231,015
13,216,226
Creditors: due in more than one year
11		 -
-
(8,482)
(8,482)
Net assets 14,589,030
14,574,241
13,222,533
13,207,744
Income funds
Restricted
12
Unrestricted:
Designated - tangible fxed assets
13,14
Designated - Service Develop’t
13,14
Designated - trading funds
2
Total designated funds
General funds
13,14		 -
-
-
-
7,396,031
7,396,031
7,706,745
7,706,745
2,865,770
2,865,770
2,437,194
2,437,194
14,789
-
14,789
-
10,276,590
10,261,801
10,158,728
10,143,939
4,312,440
4,312,440
3,063,805
3,063,805
Total unrestricted funds 14,589,030
14,574,241
13,222,533
13,207,744
Total funds 14,589,030
14,574,241
13,222,533
13,207,744
The fnancial statements were approved and authorised for issue by the Trustees and are signed on their behalf by
Kate Tompkins
James Gare
Chairman
Treasurer
Date:
Date:

The accompanying accounting policies and notes form an integral part of these financial statements.

Annual Report and Accounts 2020/21

24 Dorothy House

Consolidated Cash Flow Statement for the Year Ended 31 March 2021

Note 2021 2020
£ £
Cash fows from operating activities
Net cash used in operating activities Note A 4,122,196 (1,793,486)
Cash fows from investing activities
Dividends, interest and rents from investments 9 88,098 146,312
Purchase of property, plant and equipment 8 (115,983) (333,194)
Proceeds from the disposal of fxed assets 8 3 -
Cash from/(to) investment portfolio 9 - 2,000,000
Net additions to the investment portfolio (58,205) (111,829)
Net cash provided by investing activities (86,087) 1,701,289
Change in cash in the reporting period 4,036,109 (92,197)
Cash at the beginning of the reporting period 589,351 681,548
Cash at the end of the reporting period Note B 4,625,460 589,351

Note A) Reconciliation of cash flows from operating activities

Note A) Reconciliation of cash fows from operating activities
Net income/(expenditure) for the reporting period 1,366,497 (999,962)
(as per the statement of fnancial activities)
Adjustments for:
Net losses/(gains) on investments (741,381) 337,574
Depreciation charges 399,877 480,220
Dividends, interest and rents from investments (88,098) (146,312)
(Proft)/loss on the sale of fxed assets 26,819 -
(Increase)/decrease in stocks 15,132 (18,485)
(Increase)/decrease in debtors 532,940 (1,229,598)
Increase/(decrease) in creditors 860,410 (216,923)
Coronavirus Business Interuption Loan Scheme 1,750,000 -
Net cash infow/(outfow) from operating activities 4,122,196 (1,793,486)
Note B) Analysis of net cash resources
At 31 March 2020 Net cash infowAt 31 March 2021
£ £ £
Bank and petty cash balances 589,351 4,036,109 4,625,460

Bank and petty cash balances

Annual Report and Accounts 2020/21

25 Dorothy House

Notes to the Financial Statements For the Year Ended 31 March 2021

Dorothy House is a company limited by guarantee and a charity registered at the Charity Commission in England and Wales. The Principal address is Winsley, Bradford on Avon, BA15 2LE.

1. Accounting Policies

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:

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) (effective 1 January 2015) – (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), and the Companies Act 2006. The charity constitutes a public benefit entity as defined by FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s).

The charity’s functional and presentational currency is the pound sterling.

Basis of consolidation – The group financial statements consolidate the results of the charity and its wholly-owned subsidiary Dorothy House Trading Ltd. on a line by line basis. A separate Statement of Financial Activities, or income and expenditure account, for the charity itself is not presented because the charity has taken advantage of the exemptions afforded by section 408 of the Companies Act 2006.

Going Concern – The Trustees assess whether the use of going concern is appropriate, i.e. whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the charity to continue as a going concern. The Trustees make this assessment in respect of a period of one year from the date of approval of the financial statements.

The Trustees continue to monitor the impact that Covid-19 is having on operations and are taking actions to minimise their effect on the long-term reserves of the charity. Under all the scenarios reviewed, the charity has sufficient reserves to enable it to continue as a going concern for the foreseeable future. For this reason it continues to adopt the going concern basis in preparing the financial statements.

Incoming resources

Judgements in applying accounting policies and key sources of estimation uncertainty – The preparation of the financial statements requires management to make judgments, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for income and expenditure during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. Apart from those judgments involving significant estimates as detailed in the accounting policies, there are no judgments to note that have had a significant effect on amounts recognised in the financial statements.

Resources expended – Resources expended are included in the Statement of Financial Activities on an accruals basis, inclusive of any VAT which cannot be recovered. Expenditure which can be directly attributed to specific activities has been included in appropriate cost categories. Certain other costs, which are attributable to more than one activity, are apportioned across cost categories on the basis of an estimate of the proportion attributable to each activity.

Operating leases – Rentals in respect of assets held under operating leases are charged against revenue on a straight line basis over the term of the lease. Financial commitments arising from such leases are disclosed in note 15.

Pensions – The charity operates a contributory group personal pension scheme for the benefit of the staff. The scheme’s funds are administered by independent Trustees and are independent of the charity’s finances. Benefits under the scheme are dependent on contributions paid and the charity is not committed to the provision of a pension related to final salary. The charity also makes contributions for eligible employees to the National Health Service Pension Scheme which is a multi-employer defined benefit pension scheme where pensions payable are based on final pensionable salary. As the charity is unable to identify its share of the assets and liabilities of the scheme on a consistent and reasonable basis, the scheme is treated by the charity as if it were a defined contribution scheme, as permitted by FRS 102. For all active schemes, the charity’s contributions are charged against income in the year in which they are made.

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26 Dorothy House

Financial instruments – Financial instruments are recognised in the Charity’s balance sheet when it becomes a party to the contractual provisions of the financial instrument.

Trade debtors – Trade debtors are non interest bearing and are stated at original invoiced amount less an appropriate allowance for irrecoverable amounts. Such allowances are based on known customer exposures.

Cash – Cash comprises cash at bank and in hand.

Trade creditors – Trade creditors are non interest bearing and are stated at the original invoiced amount.

Investments – The investments held by the charity are stated at their open market value at the Balance Sheet date. Gains and losses on disposal and revaluation of investments are credited or charged to the Statement of Financial Activities. Deposit accounts previously accounted for as Fixed Asset Investments are now shown with Cash, as they are not used for investment purposes.

Stock – Stock is valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. FRS 102 recommends that goods donated for resale are valued. However, estimating the fair value of donated goods for resale is impractical for the charity because of the high volume of low value items received and the absence of a detailed stock control system. The trustees have therefore determined that no meaningful valuation can practicably take place.

Fund Accounting

Income from financial instruments – Interest is accrued and credited to the profit and loss account in the period to which it relates.

Dividend income from investments – Dividend Income is recognised when the shareholders’ rights to receive payment have been established.

Tangible Fixed Assets – Freehold properties

Freehold property is included at original cost plus subsequent costs of additions.

Funds held by the charity are either:

No depreciation is provided on freehold properties. It is the charity’s practice to maintain these assets in a continual state of sound repair and accordingly the Trustees consider that the lives of these assets are so long and residual values so high, based on prices prevailing at the time of acquisition, that any charge for depreciation is immaterial. In the absence of any depreciation charge an annual impairment review is undertaken and any permanent diminution in the value of such properties is charged to the Statement of Financial Activities as appropriate.

Tangible Fixed Assets – other assets

Tangible fixed assets costing more than £1,000 are capitalised and included at cost.

Depreciation is calculated to write off the cost, less estimated residual values, of tangible fixed assets over their estimated useful lives to the charity. The annual depreciation rates and methods are as follows:

Leasehold properties: Evenly over the term of the lease Fixtures, equipment and ICT: 10 - 33 1/3% straight line, as appropriate Motor vehicles: 25% straight line

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27 Dorothy House

2. Commercial Trading Activities and Investment In Trading Subsidary

The charity has a wholly-owned subsidiary, Dorothy House Trading Limited incorporated in England and Wales, which sells Ubiety, our body and home fragrance range and calendars and greetings cards. The company covenants its profit to the charity. A summary of the trading results and details of its assets and liabilities is shown below:

Note
Summary Proft and Loss Account
Turnover
Cost of sales and administrative costs
4
Management charge from Dorothy House Foundation
4		 2021
2020
£
£
92,157
238,381
(32,692)
(103,352)
(33,256)
(112,817)
Net income
Amount gifted to the charity under deed of covenant		 26,209
22,212
(26,209)
(22,212)
Proft retained in the subsidiary -
-
Note
Summary Balance sheet
Fixed Assets
Stock
Other debtors
Bank balances
Creditors-due to Dorothy House
10
Other creditors		 2021
2020
£
£
7,430
15,843
35,784
50,916
7,107
3,208
34,800
15,176
(45,753)
(36,026)
(24,577)
(34,325)
Total net assets 14,791
14,791
Share Capital
Proft and Loss Account		 2
2
14,789
14,789
14,791
14,791

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28 Dorothy House

3. Analysis of Income from Charitable Activities
Contracts and operating income:
NHS contracts and grants
Catering and other similar income
Education and training income
3A. Other Trading Activities
Shops’ Income
Fundraising events
Lottery
3B. Donations, Grants and Legacies
Donations
Legacies
Governments grants		 Unrestricted
Restricted
Funds
Funds
£
£
2,617,060
-
145,195
-
200,267
-		 Group
Group
2021
2020
£
£
2,617,060
2,721,564
145,195
72,939
200,267
167,393
2,962,522
-		 2,962,522
2,961,896
Unrestricted
Restricted
Funds
Funds
£
£
2,012,039
208,884
1,475,458
-
1,728,300
3,423,349		 Group
Group
2021
2020
1,610,186
4,983,566
373,574
602,044
607,532
530,935
2,591,292
6,116,545
Group
Group
2021
2020
£
£
2,220,923
1,656,809
1,475,458
2,067,081
5,151,649
717,422
5,215,797
3,632,233		 8,848,030
4,441,312

The Restricted Government grants include £2.7m 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. Unrestricted Government grants include £1.2m Coronavirus Job Retention Scheme income.

Annual Report and Accounts 2020/21

29 Dorothy House

4. Analysis of Resources Expended

4. Analysis of Resources Expended
Cost of raising funds
Charity shop costs
Fundraising and publicity
Expenses of subsidiary - Note 2
Lottery costs
Investment Management Costs
Direct charitable activities
Patient Services costs
Education services
Governance Costs		 Staf costs
Other costs
Support
Total
Total
(including
costs
2021
2020
depreciation)
£
£
£
£
£
1,748,214
1,627,206
507,578
3,882,998
3,987,561
774,994
260,823
150,320
1,186,137
1,156,379
-
65,948
-
65,948
216,169
-
5,525
-
5,525
7,800
-
29,449
-
29,449
32,863
2,523,208
1,988,951
657,897
5,170,057
5,400,773
5,955,893
1,168,942
1,078,492
8,203,327
8,355,218
279,698
51,798
73,862
405,358
504,560
6,235,591
1,220,741
1,152,354
8,608,685
8,859,778
22,758
63,319
-
86,077
67,876
6,258,349
1,284,060
1,152,354
8,694,762
8,927,655
Total resources expended: 2021 8,781,556
3,273,011
1,810,252
13,864,819
14,328,429
9,014,073
3,442,511
1,871,845
14,328,429
2021
2020
£
£
11,750
10,950
11,880
-
4,130
8,020
Total resources expended: 2020
Included in the Governance Costs above are the following costs:
Auditor’s remuneration External audit
(inc. applicable VAT) : Non-audit services
Internal Auditor (inc. applicable VAT):
Governance Costs also include an apportionment of Senior Management costs.

Annual Report and Accounts 2020/21

30 Dorothy House

4. Analysis of Resources Expended

4. Analysis of Resources Expended
Charitable Activities
Inpatient Unit
Day Patient Unit/Comp Therapy
Lodges
Nurse Specialists
Hospice at Home
Lymphoedema & Physiotherapy
Medical Services
Family Support
Education		 Staf Costs
Other Direct
Support Costs
Total
Total
Costs
2021
2020
£
£
£
£
£
1,575,204
298,938
244,702
2,118,844
1,978,613
363,321
50,269
60,331
473,921
801,364
15,752
20,113
-
35,865
40,994
1,154,170
328,958
225,359
1,708,487
1,566,508
995,437
105,310
209,577
1,310,324
1,561,208
524,676
165,050
147,217
836,943
833,713
671,952
121,793
65,749
859,494
807,529
655,381
78,511
125,557
859,449
765,288
279,698
51,798
73,862
405,358
504,560
Total 6,235,591
1,220,740
1,152,354
8,608,685
8,859,778
Support Costs Breakdown
Basis of Allocation:
Inpatient Unit
Day Patient Unit/Comp Therapy
Lodges
Nurse Specialists
Hospice at Home
Lymphoedema & Physiotherapy
Medical Services
Family Support
Education
Charitable Activities
Retail
Fundraising		 Administration
Finance
Provisions/Non
Total
& Telecoms
IM
& Personnel
recurring costs
2021
2020
Staf Numbers
Number
Staf
Staf
(excl. shops)
of PCs
Numbers
Numbers
£
£
£
£
£
£
49,834
52,624
103,722
38,522
244,702
223,837
12,502
12,144
26,021
9,664
60,331
118,442
-
-
-
-
-
-
42,715
60,720
88,905
33,019
225,359
194,909
51,223
12,144
106,614
39,596
209,577
279,617
17,190
80,960
35,779
13,288
147,217
141,692
11,807
20,240
24,575
9,127
65,749
57,537
19,447
50,600
40,477
15,033
125,557
112,228
11,286
30,360
23,491
8,725
73,862
52,016
216,004
319,792
449,584
166,974
1,152,354
1,180,278
33,338
93,104
277,918
103,218
507,578
538,959
25,872
50,600
53,849
19,999
150,320
152,608
Total 275,214
463,496
781,352
290,191
1,810,252
1,871,845

Annual Report and Accounts 2020/21

31 Dorothy House

5. Employee Information

5. Employee Information
Wages and salaries
Social security costs
Pension costs
£1,393,986 of the above are included in Support and Other Costs shown in Note 4.
The average number of permanent employees (whole-time equivalent) during the year was as follows:
Patient service
Nursing staf
Medical
Chaplain
Social worker
Support staf
Education
Fundraising
Management and administration
Dorothy House shops
The numbers of employees who earned more than £60,000 per annum was:
£60,000 - £70,000
£70,000 - £80,000
£80,000 - £90,000
£90,000 - £100,000
£100,000 - £110,000		 2021
2020
£
£
8,702,314
9,031,842
742,031
766,042
862,165
665,375
10,306,510
10,463,259
104
107
7
8
1
1
10
10
20
22
142
149
5
5
17
23
42
41
84
89
290
308
2021
2020
4
2
2
3
0
2
4
1
0
0

Of these, 5 (2020 4) are Clinical staff. Pension contributions for all 10 employees amounted to £80,295 (2020: 8 employees, £66,189). £7,146 pension contributions (2020 £519) were paid on behalf of key management staff not included in the bandings above.Senior Management pay is regulated by the Pay and Remuneration Committee.

The charity considers that the key management personnel comprise the Trustees and the Executive team - who are the Chief Executive and 5 other Heads of Department.

The total salaries and employer pension contributions of the key management personnel of the charity were £549,833 (2020 £533,336).

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32 Dorothy House

6. Trustees’ Remuneration and Expenses

The Trustees of the charity received no remuneration, travel expenses totalling £nil (2020: £1,523) were reimbursed to (2020: two) Trustees.

In addition to their time, the trustees often provide support to the charity in the form of monetary donations and the donation of goods for sale in the charity’s shops. The value of such donations was less than £500 per trustee (2020: all donations less than £500 per Trustee).

The charity has insurance costing £361 (2020: £382 Trustees only) to indemnify the Trustees from any loss arising from their neglect or default.

7. Pension Costs

The charity makes contributions for eligible employees to the National Health Service Pension Scheme which is a multi-employer defined benefit pension scheme where pensions payable are based on final pensionable salary. As the charity is unable to identify its share of the assets and liabilities of the scheme on a consistent and reasonable basis, the scheme is treated by the charity as if it were a defined contribution scheme, as permitted by FRS 102 section 28 “Employee Benefits”. Contributions are charged to the Statement of Financial Activities in the year in which they are made.

For employees who are ineligible to join the NHS scheme, the charity also operates a defined contribution pension scheme through Aviva. The scheme’s funds are administered by independent trustees and are independent of the charity’s finances. Benefits under the scheme are dependent on contributions paid and the charity is not committed to the provision of a pension related to final salary.

The charity’s contributions to pension schemes in the year amounted to £862,165 (2020: £665,375); the amount of contributions due by the charity to the schemes at the year end was £253,360 (2020: £142,824).

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33 Dorothy House

8. Fixed Assets

8. Fixed Assets
CHARITY: Land and Buildings: Fixtures and Motor Charity Total
Freehold
Leasehold		 Equipment Vehicles
Cost £
£		 £ £ £
At start of year 6,338,791
570,062		 5,077,230 120,042 12,106,125
Additions 950
-		 115,033 - 115,983
Disposals -
(185,680)		 (1,501) - (187,181)
At end of year 6,339,741
384,382		 5,190,762 120,042 12,034,927
Depreciation
At start of year -
314,434		 3,984,114 116,676 4,415,224
Charge for the year -
38,780		 349,375 3,309 391,464
Depreciation on Disposals -
(159,159)		 (1,203) - (160,362)
Eliminated on disposal - - - - -
At end of year -
194,055		 4,332,286 119,985 4,646,326
Net Book Value
At end of year 6,339,741
190,327		 858,476 57 7,388,601
At start of year 6,338,791
255,628		 1,093,116 3,366 7,690,901

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34 Dorothy House

8. Fixed Assets (continued)

8. Fixed Assets (continued)
GROUP: Land and Buildings: Fixtures and Motor Group Total
Freehold
Leasehold		 Equipment Vehicles
Cost £
£		 £ £ £
At start of year 6,338,791
570,062		 5,102,469 120,042 12,131,364
Additions 950
-		 115,033 - 115,983
Disposals -
(185,680)		 (1,501) - (187,181)
At end of year 6,339,741
384,382		 5,216,001 120,042 12,060,166
Depreciation
At start of year -
314,434		 3,993,510 116,676 4,424,620
Charge for the year -
38,780		 357,788 3,309 399,877
Depreciation on Disposals -
(159,159)		 (1,203) - (160,362)
Eliminated on disposal - - - - -
At end of year -
194,055		 4,350,095 119,985 4,664,135
Net Book Value
At end of year 6,339,741
190,327		 865,906 57 7,396,031
At start of year 6,338,791
255,628		 1,108,959 3,366 7,706,744

The net book value at the end of the year represents assets used for the following purposes:

Patient services
Other purposes:
Management
Charity shops		 Land and Buildings:
Fixtures and
Motor
Total
Freehold
Leasehold
Equipment
Vehicles
£
£
£
£
£
6,026,737
35,529
560,225
-
6,622,491
-
-
132,754
-
132,754
313,004
154,798
172,927
57
640,786
6,339,741
190,327
865,906
57
7,396,031

The freehold property shown under patient services is the charity’s property at Winsley. Parts of this property are used for management, administration and educational purposes, and part is let; the Trustees do not believe it is practical to try and apportion the net book value between these various uses.

Annual Report and Accounts 2020/21

35 Dorothy House

9. Investments
2021
£
Market value at the start of the year
Net additions to the investment portfolio:
Movement in cash balances invested: (reduction)/increase
Portfolio investment income held by brokers
Management fees charged
Gains or (losses) in the year:
Realised - on sale of investments
24,192
Unrealised - change in value of portfolio in the year
717,189		 2021
2020
2020
£
£
£
3,593,361
5,819,108
-
(2,000,000)
86,684
145,078
(28,479)
(33,249)
186,875
(524,450)
741,381
(337,574)
Market value at the end of the year 4,392,947
3,593,361
The investments are held as follows:
Managed by brokers:
Fixed interest stocks
Equities - UK
Equities - non-UK
Other Investments
Uninvested cash balances		 £
£
654,901
631,566
1,511,455
1,148,755
1,537,495
1,107,670
606,343
541,235
82,753
164,135
4,392,947
3,593,361
Investment in subsidiary
2
2

One investment, SPDR Series Trust (S&P 500) ETF accounted for 12.0% (2020: 9.9%) of the portfolio managed by the investment advisers at 31 March 2021. There were no other investments accounting for more than 5% of the value of the portfolio.

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36 Dorothy House

10. Debtors

10. Debtors
Note
Trade debtors
Legacies
Other accrued income
Other debtors
Amount owed from subsidiary
2
Prepayments		 At 31 March 2021
At 31 March 2020
Group
Charity
Group
Charity
£
£
£
£
233,025
233,025
80,654
80,654
780,156
780,156
1,246,504
1,246,504
730,625
730,625
119,984
119,984
201,136
194,027
382,607
379,400
-
45,753
-
36,026
142,777
142,777
790,910
790,910
2,087,719
2,126,363
2,620,659
2,653,478

11. Liabilities

11. Liabilities
AMOUNTS DUE IN LESS THAN ONE YEAR
Trade creditors
Taxes and social security
Other creditors
Coronavirus Business Interuption Loan Scheme
Accruals and deferred income
AMOUNTS DUE IN MORE THAN ONE YEAR
Other creditors
DEFERRED INCOME
Deferred income at 1 April
Resources deferred during the year
Amounts released from previous years		 At 31 March 2021
At 31 March 2020
Group
Charity
Group
Charity
£
£
£
£
174,470
174,470
291,671
291,671
189,440
189,440
258,127
258,127
1,633,112
1,608,533
627,359
593,034
1,750,000
1,750,000
-
-
201,889
201,889
152,860
152,860
3,948,911
3,924,332
1,330,018
1,295,693
-
-
8,482
8,482
Group
Group
2021
2020
£
£
31,091
54,211
86,973
31,091
(31,091)
(54,211)
Deferred income at 31 March 86,973
31,091

Deferred income represents amounts paid in advance for clinical services.

Annual Report and Accounts 2020/21

37 Dorothy House

12. Restricted Funds

The funds of the charity include restricted funds comprising the following donations and grants held on trust to be applied for specific purposes as described in the titles below:

NHSE Emergency Bed Capacity Phase 1
NHSE Emergency Bed & community Capacity Phase 2
CCG COVID related funding
Private Capital Grants, Trusts & Legacies		 At 31 March
At 31 March
2020
Incoming
Expense
2021
£
£
£
£
-
1,614,816
(1,614,816)
-
-
1,063,527
(1,063,527)
-
-
774,128
( 774,128 )
-
-
242,826
( 242,826)
-
-
3,695,297
(3,695,297)
-

During the prior year the Trustees reviewed the restrictions placed on fixed assets. The Trustees determined that these restrictions have been met and that these assets should now be treated as designated fixed assets.

13. Designated funds

The bulk of the charity’s fixed assets have been funded from unrestricted income, mainly donations and legacies; at 31 March 2021 this funding amounted to £7,396,031. As these funds are not available for expenditure on future charitable objects the Trustees believe it appropriate to show these amounts as designated reserves, separate to the free funds of the charity.

Designated service development reserves are in line with our five year plan to deliver our strategic ambition. Unrestricted and unassigned reserves are held to protect against the risk of volatile income streams and compliant with the minimum levels defined by our risk based reserves policy.

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38 Dorothy House

14. Analysis of Group Net Assets between Funds

Fund balances at 31 March 2021 are held as follows:

Tangible fxed assets
Investment portfolio
Current assets
Liabilities		 Restricted
Designated -
Designated -
Designated -
Unrestricted &
Total
Funds
fxed assets
DHTrading Ltd
Service Devel’t
Unassigned
2021
£
£
£
£
£
£
-
7,396,031
-
-
-
7,396,031
-
-
-
2,865,770
1,527,177
4,392,947
-
-
14,789
-
6,734,174
6,748,963
-
-
-
-
(3,948,911)
(3,948,911)
-
7,396,031
14,789
2,865,770
4,312,440
14,589,030

Current assets includes £1,789,737 representing the year on year volatility of legacy income identified in our Reserves Policy

Fund balances at 31 March 2020 are held as follows:

Tangible fxed assets
Investment portfolio
Current assets
Liabilities		 Restricted
Designated -
Designated -
Designated -
Unrestricted &
Total
Funds
fxed assets
DHTrading Ltd
Service Devel’t
Unassigned
2020
£
£
£
£
£
£
-
7,706,745
-
-
-
7,706,745
-
-
-
1,500,000
2,093,361
3,593,361
-
-
14,789
937,194
2,308,943
3,260,926
-
-
-
-
(1,338,500)
(1,338,500)
-
7,706,745
14,789
2,437,194
3,063,804
13,222,532

15. Commitments Under Operating Leases

The total commitments under operating leases were:
Payments falling due:
Less than one year
One to two years
Two to fve years
More than fve years		 Shop
Outreach
Other
leases
Centres
Leases
£
£
£
560,465
40,000
12,015
266,546
5,151
-
201,492
-
-
110,716
-
-
1,139,219
45,151
12,015

Annual Report and Accounts 2020/21

39 Dorothy House

16. Capital Commitments

16. Capital Commitments
Contracted for
Authorised but not yet contracted for
17. Financial Assets
Financial assets
Financial assets that are measured at fair value through proft or loss:
- Listed securities
- Deposit accounts
Financial assets that are measured at amortised cost:
- Cash at bank and in hand
- Trade debtors
- Other debtors
Financial liabilities
Financial assets that are measured at amortised cost:
- Trade creditors
- Accruals		 2021
2020
£
£
14,319
12,482
307,770
487,518
2021
2020
£
£
4,310,194
3,429,226
82,753
164,135
4,625,460
589,351
233,025
80,654
1,711,917
1,749,095
10,963,349
6,012,461
174,470
291,671
114,916
121,769
289,386
413,440

18. COVID-19

The Trustees continue to closely monitor the impact of COVID-19 and take actions to help at this time of need through the provision of as much care as possible. Retail operations have resumed positively and management continue to closely monitor cashflow.

(•) Dorothy lo House HOSPICE CARE