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2021-03-31-accounts

SAINT FRANCIS HOSPICE “Living with Dignity”

REPORT AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

Registered Company Number: 1367828 Registered Charity Number: 275913

SAINT FRANCIS HOSPICE

REPORT AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

CONTENTS Page
Legal and administrative details 3
Trustees’ report 4 - 13
Independent auditors’ report 14 - 15
Consolidated statement of fnancial activities 16
Balance sheets 17
Consolidated cash fow statement 18
Notes to the fnancial statements 19 - 37

Page 3 of 48

SAINT FRANCIS HOSPICE

LEGAL AND ADMINISTRATIVE INFORMATION

FOR THE YEAR ENDED 31 MARCH 2021

Charity Name Saint Francis Hospice
Charity Number 275913
Company Number 1367828 incorporated 11 May 1978
Status A charitable company limited by
guarantee
Governing Document Memorandum
and		 Articles
of
Association
Saint Francis Group Saint Francis Hospice Company Registration No
1367828
Saint Francis Hospice (Trading Company Registration No.
Company) Limited 2509586
Saint Francis Hospice Development Charity
Registration		 No.
Trust 288532
incorporated into the main charity in
2008
Registered and The Hall
Operating Havering-atte-Bower
Ofce Romford, Essex
RM4 1QH
Management Team Pam Court (Chief Executive Ofcer)
Carole Heinen (Director of Finance & Company Secretary)
Corinna Midgley (Medical Director)
Jane Frame (Director of Strategy, Planning and Fundraising)
Luella Dixon (Interim Associate Director of HR & OD) from
1.4.2020
Lynn Bryan (Director of Corporate Services & Company
Secretary) Retired 31.3.2021
Michelle Nicholls (Commercial & Safety Director)
Tes Smith (Director of Quality, Care and Support Services)
Auditors haysmacintyre
10 Queen Street Place
London. EC4R 1AG
Investment Advisors Investec Wealth & Investment Limited
30 Gresham Street
London. EC2V 7QN
Bankers Barclays Bank Plc
1 Churchill Place
London. E14 4HP

Page 4 of 48

SAINT FRANCIS HOSPICE

TRUSTEES‘ REPORT

FOR THE YEAR ENDED 31 MARCH 2021

Board of Trustees

Peter Crutchett Chairman of the Board

Paul Gwinn

Vice Chairman of the Board Chairman of Corporate Governance Committee Member of Finance, Audit & Investment Governance Committee

Ian Gunn (Treasurer)

Chairman of Finance, Audit & Investment Governance Committee Member of Corporate Governance Committee

Amanda Hallums

Member of Clinical Governance Committee Member of Corporate Governance Committee

Colin Wilkins

Member of Corporate Governance Committee Member of Finance, Audit & Investment Governance Committee

Dr Gurdev Saini

Vice Chairman of Clinical Governance Committee Member of Finance, Audit & Investment Governance Committee

Linda Huggett

Member of Finance, Audit & Investment Governance Committee Member of Corporate Governance Committee

Malcolm Miller

Vice Chairman of Finance, Audit & Investment Governance Committee Member of Clinical Governance Committee

Peter Adams

Member of Corporate Governance Committee Member of Clinical Governance Committee

Peter Batt

Vice Chairman of Corporate Governance Committee Member of Clinical Governance Committee

Ranjita Sen (appointed 17[th] August 2020) Member of Finance, Audit & Investment Governance Committee

Dr Robert Weatherstone

Chairman of Clinical Governance Committee Member of Finance, Audit & Investment Governance Committee

Page 5 of 48

SAINT FRANCIS HOSPICE

TRUSTEES‘ REPORT

FOR THE YEAR ENDED 31 MARCH 2021

The Trustees, who are also directors of the charitable company for the purposes of the Companies Act 2006, present their report with the consolidated financial statements of the group for the year ended 31 March 2021. The Trustees have adopted the provisions of 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) (Second Edition effective 1 January 2019).

INTRODUCTION

Saint Francis Hospice, one of the UK’s largest hospices and an independent charity, serves the diverse growing population of Brentwood, Havering, Barking & Dagenham, Redbridge and West Essex.

End of life care is provided to patients, and support to their loved ones, both during the patient’s illness and continuing into bereavement support, including for children who are affected.

Most people are cared for in the community, by our Specialist Community and Crisis Support Service and by our Hospice at Home team who typically provide care in the last weeks of life. We have a 19 bedded ward to provide care for people with the most complex needs.

Our Specialist Multidisciplinary Support Services team provide physiotherapy, occupational therapy, and family services including social workers.

As part of our commitment to excellence in end of life care, our onsite Education Centre has excellent teaching facilities and an extensive reference library, and provides training to people on the frontline of palliative and health/social care.

Public Benefit

The Trustees have complied with the duty in Section 17 of the Charities Act 2011 to have due regard to public benefit guidance published by the Charities Commission. They have referred to the guidance in the Charity Commission’s general guidance on Public Benefit when reviewing the Hospice’s aims and objectives and in planning future activities as demonstrated below.

Care Quality Commission (CQC) inspection area ratings (Latest report published on 9 July 2016)

----- Start of picture text -----
SAFE Good
EFFECTIVE Outstanding
CARING Outstanding
RESPONSIVE Outstanding
WELL-LED Outstanding
----- End of picture text -----

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SAINT FRANCIS HOSPICE

TRUSTEES‘ REPORT (continued)

FOR THE YEAR ENDED 31 MARCH 2021

OBJECTIVES, ACTIVITIES AND ACHIEVEMENTS

Saint Francis Hospice is committed to helping anyone in our communities affected by a lifelimiting illness, and to ensure they receive excellent person-centred care when they need it, ideally in a place of their choosing.

The last twelve months have been challenging, with changing models across all services as a result of restrictions caused by the pandemic. Throughout, patients and families have been supported and have received care albeit delivered in different ways and often using virtual means.

Across all services, the number of patients cared for increased by 11.8% between 1[st] April 2020 and 31[st] March 2021. The number of people we have cared for with a non-cancer primary diagnosis continues to rise and is now 38%.

Inpatient Unit admissions increased by 7.5% despite periods when beds were not available due to Covid restrictions. Of those admitted 66.5% died in the Hospice, 33.5% were discharged home (including to a care home).

Our Specialist Community and Crisis Support (SCCS) team has seen a significant increase in the number of face to face or telephone contacts with patients and relatives – 17,834 compared to 16,565 (increase of 7.6%).

Our Hospice at Home team made 4,537 home visits to 585 people in the last few days of their life, working safely with PPE and social distancing where possible to ensure safety of all concerned.

Pemberton Place, our day hospice, was closed early in the pandemic, so only 47 people attended in person during the last twelve months. However, all who would normally attend where supported via phone and zoom calls and regular creative therapy packs.

The Family Support Team supported 192 people, with a further 513 people (including 76 children) who received bereavement counselling.

Further information is available on our website within the Saint Francis Hospice Quality Account 2020/21.

Activity Costs

We endeavour to continue to provide all of our services free of charge at the point of delivery. Whilst doing this, we use financial indicators to highlight the actual cost of providing specialist, palliative care services. The average patients costs were £606 for one day of care in our InPatient Unit; £305 for a Day Therapy Services session; £54 per hour of care given by the Hospice at Home team, and £286 for a home visit – all of these figures are used as our financial benchmark.

Five local Clinical Commissioning Groups (NHS) contract us to deliver the provision of end of life services.

We are absolutely dependent on both our NHS contracts and the generous support of local people and businesses. Public awareness of our services and the work of our fundraising and Retail teams continue to be critical to our organisation since our work requires on going and increased funding to reach people who need our help.

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SAINT FRANCIS HOSPICE

TRUSTEES‘ REPORT (continued)

FOR THE YEAR ENDED 31 MARCH 2021

OBJECTIVES, ACTIVITIES AND ACHIEVEMENTS (continued)

STRATEGIC REVIEW AND BUSINESS PERFORMANCE

Our Vision

“Saint Francis Hospice is committed to helping anyone in our communities who is affected by life limiting illness receive excellent person centred care when they need it and ideally in a place of their choosing.”

Our Values

These values underpin all that our charity aspires to do, as well as shaping our external and internal behaviour:

Supportive: We listen to people and value peoples’ experiences and use them to give the personal support that is right for everyone.

Compassionate: We are kind and provide a caring and compassionate environment for everyone. We put people at the heart of our actions and words and support people’s choices and decisions, helping them feel safe, secure and valued.

Inclusive and Respectful: We are open and transparent and value each person’s individuality. We respect everyone and value diversity. We believe our different experiences and knowledge make us stronger. Together we achieve more.

Professional: We are experienced in what we do as a hospice and as a charity. We encourage everyone to give of their best, in providing the appropriate care and expertise to those who need us and support us.

Always Learning: We are open and outward looking, always ready to adapt and change, looking for better ways of doing things, by learning from each other and from the ever changing world around us.

The delivery of high quality care is at the core of everything we do and our main quality improvement projects for 2021/22 are:

Further details can be found in our Quality Account which is available on our website.

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SAINT FRANCIS HOSPICE

TRUSTEES‘ REPORT (continued)

FOR THE YEAR ENDED 31 MARCH 2021

FINANCIAL REVIEW

The enclosed financial statements detail the financial performance and the state of affairs of the Group for the year ended 31[st] March 2021. The Consolidated Statement of Financial Activities shows that income of £12,557,000 (2020: £12,291,000) was received, with related expenditure in the year of £10,646,000 (2020: £11,111,000) leading to a net inflow of resources (before investment gains) of £1,911,000 (2020: £590,000).

The retail income from our 16 stores across Barking & Dagenham, Brentwood, Havering and Redbridge including sale of donated goods unfortunately have not made a contribution in 2020/21 due the pandemic and has cost £1,190,000 (2020 contributed: £560,000) to the charity.

We continue to rely on strong support from our local community and are extremely grateful for the income received from public donations which, including legacies, amounted to £5,319,000 (2020: £6,201,000).

The NHS and local health trusts have also maintained their commitment to and collaboration with the Hospice, providing funding equivalent to around 35.5% (2020: 30.5%) of total expenditure.

The costs of providing services relate primarily to staff salaries with the Group employing on average 183 full and part time staff during the course of the year.

The operating costs for the Hospice, which includes all the shops, for the year ahead 2021/22, are forecast at £11.4 million in support of a comprehensive range of activities.

Principal Risks and Uncertainties

The Group’s approach to its Reserves Policy, Investment Policy, and Risk Management is summarised below.

Reserves Policy

The need to retain reserves has been considered and reviewed in detail on behalf of the Trustees by the Finance, Audit and Investment Governance Committee. There remains an essential requirement to support and maintain the core activities and objectives of the Hospice. Around 70% of annual income is expected to be generated from the continued generous support of the local community through donations. As the economic environment continues to be difficult, the Trustees are conscious that income generated through public donations is becoming increasingly difficult to predict. This is particularly notable with legacy income, where greater risk of fluctuation may be anticipated. It is, therefore, important to keep a financial buffer to support potential recovery planning, in the light of any significant future income loss.

The use of free reserves was reassessed during the year as part of the planning and budgetary process aimed

at ensuring and safeguarding the future requirements of the Hospice’s patients.

The Trustees continue to financially evaluate the risks and the required level of free reserves to be set aside as a designated contingency fund and have retained the agreement that it remains a robust and appropriately prudent assumption to work towards a fund equivalent to 12 months’ planned operating costs for the Hospice.

The existing fund of £18 million is equivalent to approximately 18 months’ planned Hospice

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operating costs for 2021/22, which include a provision for inflation.

Total unrestricted funds amount to £18,229,000 and the Trustees have designated £9,846,000 towards a number of programs and contingencies as described in note 18. General unrestricted funds amount to £8,383,000 (2020: £5,167,000).

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SAINT FRANCIS HOSPICE

TRUSTEES‘ REPORT (continued)

FOR THE YEAR ENDED 31 MARCH 2021

FINANCIAL REVIEW (continued)

Investment Policy

The Board of Trustees has invested funds to obtain the best return, whilst ensuring easy access to meet the operating costs of the Hospice. In addition, the Trustees are mindful of social, environmental and ethical considerations when formulating investment arrangements. This and other policy issues have been reviewed by the Audit & Investment Governance Committee. Investec are the appointed investment fund managers for the Group, and they provide quarterly reports to the Finance, Audit & Investment Governance Committee, and attend twice during the financial year. During the year the investment markets again fluctuated considerably, but the Trustees instructed Investec to continue to take a prudent approach with the Hospice’s investments and have performed to a standard acceptable in light of the market, and worked with sensible caution to fulfil the benchmark criteria given to them.

The Hospice’s over-riding principle in its Investment Strategy is that good liquidity is maintained to meet operational needs and the ability to respond to new needs and requirements. Therefore, only funds not expected to be required in the short term have been invested.

Risk Management

The Trustees recognise their responsibility with regard to the assessment of the potential risks to which the Hospice may be exposed. Existing policies and procedures have been integrated to form a comprehensive risk management strategy with review processes and systems to be used to mitigate identifiable risks.

The Register continues to operate as the basis for monitoring, review and management of risk by the Hospice’s management team.

Impact of Covid Pandemic

The operational and financial impact has been significant in 2020-2021;

The key risks identified were:-

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extensive on line communication with our supporters who really responded with PPE, as well as donations. We immediately introduced restrictions on recruitment and a planned programme of cost reduction to minimise spend. We have subsequently implemented a phased programme of staff and non-staff spending cuts to assist in the Hospice financial sustainability.

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SAINT FRANCIS HOSPICE

TRUSTEES‘ REPORT (continued)

FOR THE YEAR ENDED 31 MARCH 2021

Impact of Covid Pandemic (continued)

During the past year, the Hospice has increased support for Staff. The number of mental health first aiders has increased, plus on line support sessions for staff and volunteers. We ensured the counselling service continued on line and fully communicated links and support networks. We continued our Schwartz rounds for staff switching to on line. For staff who were furloughed we did regular well being check in calls.

Fundraising approach and performance

The charity undertakes fundraising activity to its supporters via direct mail, telephone, email, appeals, fundraising events, sponsored events, weekly lottery. We are members of the Fundraising Regulator and fundraise in line with the Fundraising Code of Practice set by them.

Saint Francis Hospice believes it has a legitimate interest in advising the local community about their local hospice and the services available to them and the funding needed to support delivery of the services that those under our care and their family or registered next of kin benefit from, as well as the wider community in supporting our charitable work. The organisation complies with the Fundraising Regulator’s requirements and provide a simple and robust way to stop communications that are no longer required.

Information about supporters is held securely on our central communication database called ThankQ. ThankQ is a Customer Relationship (CRM) Database that enables communications to be managed accordingly and compliantly and holds other relevant information about you that relates to any donations you have given, any fundraising support such as event participation and other details about your interaction with the Hospice.

A supporter is defined as any individual (including organisations, groups, businesses) who have made or offered to make a financial donation or give support of any kind to Saint Francis Hospice. They may also be people who have expressed an interest in supporting our work, have requested information from our fundraising team, bought a raffle ticket or added to our supporter database as legitimately interested people as well as family and next of kin who have experienced our care.

The types of information that we may collect or hold on you for fundraising and marketing purposes include name, address, contact details including email and telephone where given, family links and relationship nature, donation amounts, method of payment such as cash or direct debit, fundraising or communication reason, employment status where given or other community and hospice links, communication preferences to understand supporters better, or assist with analysis and understanding of who our supporters are and why they’re interested in Saint Francis Hospice.

A total of 2 complaints about fundraising (derived from in excess of 100,000 communications) were received in the year and all were promptly resolved without the need for escalation to the regulator or the Information Commissioner.

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SAINT FRANCIS HOSPICE

TRUSTEES‘ REPORT (continued)

FOR THE YEAR ENDED 31 MARCH 2021

STRUCTURE, GOVERNANCE AND MANAGEMENT

Members of the Board of Trustees

Each voluntary member of the Board of Trustees (the governing body) is a Trustee of the Charity and a Director of the Company. They are elected by the guaranteeing Members. The Trustees listed on page one of the accounts were all Members during the period from 1[st] April 2020 to the date of signing these financial statements.

All Trustees are subjected to DBS checks. During the year, the Board held four business meetings and the Annual General Meeting on 12[th] January 2021.

Trustees are obliged to make formal declarations of interest at each quarterly governance committee meeting and at the Board of Trustees meeting.

The work and responsibilities of the Board of Trustees is supported by three Trustee led governance committees, which meet quarterly:

The Hospice provides Trustee indemnity insurance for the benefit of all Trustees.

Recruitment, Appointment and Induction of Trustees

A special Board sub-group (the Governance Steering Group) is charged with recruiting new Trustees, reviewing each Trustee’s training needs and ensuring they are met. The sub-group also looks at the existing skill mix within the Board to ensure there is a wide expertise profile. All new Trustees undergo an induction programme based on the model recommended by Hospice UK, which involves structured training sessions, participating in the Hospice’s corporate induction programme and attendance at each of the three governance committees. New Trustees also have an assigned mentor for this period.

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SAINT FRANCIS HOSPICE

TRUSTEES‘ REPORT (continued)

FOR THE YEAR ENDED 31 MARCH 2021

STRUCTURE, GOVERNANCE AND MANAGEMENT (continued)

Management Structure

The day to day management of the Hospice has been delegated to a senior executive team of seven, namely: Chief Executive Officer – Pam Court; Medical Director – Dr Corinna Midgley; Director of Finance – Carole Heinen; Director of Fundraising and Marketing - Jane Frame; Director of Retail - Michelle Nicholls; Director of Quality and Care – Tes Smith and Director of Corporate Services – Lynn Bryan who retired on 31[st] March 2021.

The Medical Director, Dr Corinna Midgley; is part of the seconded consultant team from the local Acute Trust, Barking, Havering and Redbridge University Hospitals NHS Trust who we work closely with.

The senior executive team’s pay arrangements are reviewed and set by the Remuneration Committee.

Trading Company

A trading company, Saint Francis Hospice (Trading Company) Limited (a wholly owned subsidiary of the Hospice) has been retained for trade in new goods, administration of gift aid on charitable donations to the shops and any other activity which is not deemed to be part of the Hospice’s charitable activity. There are two separate Company Directors for the trading company – Paul Gwinn and Peter Batt. All profits from the trading company are donated to the Hospice – this year totalling £1,122 (2020:£56,812).

BOARD OF TRUSTEES’ RESPONSIBILITIES

Our Trustees have overall control of our charity and are responsible for making sure the organisation is doing what it was set up to do. Our Board of Trustees are also known as directors of Saint Francis Hospice for the purpose of company law. Being a Trustee at our Hospice means making decisions that will impact on people’s lives and really making a difference to our local communities. Our Trustees have a breadth of skills and experience which they use to support our charity and achieve our aims.

This group are responsible for preparing the Trustees’ 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 Board of Trustees to prepare financial statements for each financial year, which give a true and fair view of the state of affairs of the company and of the incoming resources and application of resources, including the income and expenditure of Saint Francis Hospice for that period, in this case 2020/21.

Full details of all our current Trustees are available on our website https://www.sfh.org.uk/trustees.

In preparing the financial statements, the Board of Trustees is required to:-

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SAINT FRANCIS HOSPICE

TRUSTEES‘ REPORT (continued)

FOR THE YEAR ENDED 31 MARCH 2021

BOARD OF TRUSTEES’ RESPONSIBILITIES (continued)

The Board of Trustees is responsible for keeping proper accounting records, which disclose, with reasonable accuracy at any time, the financial position of the charitable company and enable it to ensure that the financial statements comply with the Companies Act 2006. It is also responsible for safeguarding the assets

of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

DISCLOSURE OF INFORMATION TO AUDITORS

In so far as the Board of Trustees is aware:

AUDITORS

The Hospice’s Auditors are Haysmacintyre LLP , 10 Queen Street Place, London EC4R 1AG.

Haysmacintyre, have been appointed by the Trustees as Group auditors. Haysmacintyre has signified their willingness to continue in office and a resolution proposing their reappointment will be put to the forthcoming Annual General Meeting.

By order of the Board of Trustees

…………………………………..

Peter Crutchett (Chairman) 21[st] September 2021

Page 18 of 48

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF SAINT FRANCIS HOSPICE

Opinion

We have audited the financial statements of Saint Francis Hospice for the year ended 31 March 2021 which comprise Consolidated Statement of Financial Activities, the Group and Parent Charitable Company Balance Sheets, the Consolidated Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

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 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 UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group'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 Trustees’ Annual Report and the Chairman’s Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

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

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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.

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF SAINT FRANCIS HOSPICE

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 its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees’ Annual Report (which incorporates the strategic report and the directors’ report).

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

Responsibilities of trustees for the financial statements

As explained more fully in the trustees’ responsibilities statement set out on page 12, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial 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

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

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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 non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Based on our understanding of the group and the environment in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to the Charity Act 2011, Companies Act 2006, the Fundraising Regulator, Charity Commission and Care Quality Commission (CQC), and we considered the extent to which non-compliance might have a material effect on the

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF SAINT FRANCIS HOSPICE

financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006, the Charities Act 2011, FRS102, Charities Statement of Recommended Practice (SORP) and payroll tax.

We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting of inappropriate journal entries and management bias in certain accounting estimates Audit procedures performed by the engagement team included:

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 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. 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.

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………………………………………………………………………………..

Murtaza Jessa (Senior Statutory Auditor) For and on behalf of Haysmacintyre LLP, Statutory Auditor 10 Queen Street Place London EC4R 1AG

SAINT FRANCIS HOSPICE

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (including consolidated Income and Expenditure Account)

FOR THE YEAR ENDED 31 MARCH 2021

Unrestricte Restricte Endowme Total Total
d d nt 2021 2020
funds funds funds
Not £000’s £000’s £000’s £000’s £000’s
e
INCOME FROM:
Donations and gifts 2 5,752 184 - 5,936 3,467
Legacies 2,027 - - 2,027 2,734
Charitable activities:
Service agreements with
Clinical Commissioning 3,784 - - 3,784 3,390
Groups
Trading Activities:
-
Shops		 468 - - 468 2,364
-
Education Centre		 89 - - 89 26
Investment Income and 135 - - 135 205
Interest
Other income 118 - - 118 105
---------------- ----------------- ------------------ --------------- ---------------
Total income 12,373 184 - 12,557 12,291
---------------- ----------------- ------------------ --------------- ---------------
EXPENDITURE:
Raising Funds:
Cost of operating shops 5 1,658 - - 1,658 1,804
Fundraising and publicity 5 1,305 - - 1,305 1,484
Charitable activities:
Hospice services 5 7,545 138 - 7,683 7,823
----------------- ---------------- ---------------- --------------- ---------------
Total expenditure 5 10,508 138 - 10,646 11,111

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---------------- ----------------- ------------------ ---------------
---------------
Net income/(expenditure)
before investment gains/ 1,865 46 - 1,911 1,180
(losses)
Gains/(losses) on 9 879 - - 879 (590)
investments
----------------- ---------------- ---------------- --------------- ---------------
Net Income 2,744 46 - 2,790 590
Transfers between funds 17,18 (38) 38 - - -
----------------- ---------------- ---------------- --------------- ---------------
Net movement in funds 2,706 84 - 2,790 590
----------------- ---------------- ---------------- ---------------- ----------------
Reconciliation of funds:
Total Funds brought Forward 15,541 128 53 15,722 15,132
----------------- ---------------- ---------------- --------------- ---------------
Total Funds carried 18,247 212 53 18,512 15,722
forward
====== ====== ====== ====== ======

All income and expenditure derive from continuing activities. The accompanying notes from part of these financial statements. The statement of financial activities includes all gains and losses recognised in the year. Full comparative figures for the year ended 31 March 2020 are shown in note 25.

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SAINT FRANCIS HOSPICE Company number: 1367828

CONDOLIATED AND CHARITY BALANCE SHEETS

AS AT 31 MARCH 2021

Group Group Company Company
2021 2020 2021 2020
Note £000’s £000’s £000’s £000’s
s
TANGIBLE ASSETS
Land and buildings 8 2,661 2,758 2,661 2,758
Other tangible assets 8 13 32 13 32
Investments 9 6,401 4,916 6,401 4,916
--------------- --------------- --------------- ---------------
9,075 7,706 9,075 7,706
---------------- ---------------- ---------------- ----------------
CURRENT ASSETS
Stocks 10 8 4 - -
Debtors 11 2,747 3,236 2,748 3,293
Cash at bank and in hand 7,510 5,361 7,499 5,290
--------------- --------------- --------------- ---------------
10,265 8,601 10,247 8,583
CREDITORS: amounts falling
due
within one year 12 (828) (585) (828) (585)
--------------- --------------- ------------- -------------
NET CURRENT ASSETS 9,437 8,016 9,419 7,998
-------------- -------------- -------------- --------------
-------------- -------------- -------------- --------------
NET ASSETS 18,512 15,722 18,494 15,704
====== ====== ====== ======
RESTRICTED FUNDS:
Capital Funds
Endowment funds 16 53 53 53 53
Other Funds
Restricted funds 17 212 128 212 128
UNRESTRICTED FUNDS:
Designated funds 18 9,846 10,374 9,846 10,374
General funds 19 8,401 5,167 8,383 5,149
-------------- -------------- -------------- --------------
18,512 15,722 18,494 15,704
====== ====== ====== ======

The financial statements were approved and authorised for issue by the Board of Trustees on 21[st] September 2021 and were signed on its behalf by:

……………………………………… P Crutchett (Chairman)

……………………….……. I Gunn (Treasurer)

The accompanying notes form part of these financial statements.

Page 24 of 48

SAINT FRANCIS HOSPICE

CONSOLIDATED CASH FLOW STATEMENT

FOR THE YEAR ENDED 31 MARCH 2021

Notes 2021 2021 2020 2020
£000’s £000’s £000’s £000’s
Net cash infow/(outfow) from
operating activities 23 2,620 (208)
Investing activities
Dividends and interest from 135 205
investments
Sale of investments 1,224 590
Purchase of tangible fxed assets - -
Purchase of investments (1,830) (735)
------------------ ------------------
Net cash (outfow)/infow from
investing activities (471) 60
_ _
Change in cash and cash
equivalents in the reporting period 2,149 (148)
Cash and cash equivalents at the
beginning of the reporting period 24 5,361 5,509
______ ______
Cash and cash equivalents at the
end of 24 7,510 5,361
the reporting period
====== ======

Page 25 of 48

SAINT FRANCIS HOSPICE

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

1. ACCOUNTING POLICIES

Basis of preparation of Group Financial Statements

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 (FRS102) (Second Edition effective 1 January 2019) – (Charities SORP (FRS102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) and the Companies Act 2006.

Saint Francis Hospice meets the definition of a public benefit entity under FRS102, Assets and Liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant account policy note (s).

The financial statements consolidate the results of the charity and its wholly owned subsidiary Saint Francis Hospice (Trading) Limited on a line by line basis

Preparation of accounts on a going concern basis

The Trustees consider that there are no material uncertainties about the Hospice’s ability to continue as a going concern. The most significant area of uncertainty is the level of income which needs to be raised every year and is covered in more detail in the performance and risk sections of the Trustee’s report. The review of the Hospice’s financial position, reserves levels and future plans gives Trustees confidence that it remains a going concern for the foreseeable future.

Estimation Uncertainty and Judgements

In the application of the accounting policies, Trustees are required to make judgement, estimates and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an on-going basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period and future periods. In drawing this conclusion, due consideration has also been given to the impact of the Covid-19 pandemic on the activities of the charity.

The most significant area of judgement and key assumptions that affects items in the accounts is the estimation of income from legacies. The estimated value of each outstanding legacy at 31 March is calculated in accordance with the principles set out in the Income section below. Another significant area of assumption is in respect of depreciation of fixed assets. The rates of write down are shown in the Tangible Fixed Assets note below. The Trustees are satisfied that these write down rates are a reasonable reflection of the expected useful life of the assets in each class.

Income

All income including donations are recognised once the charity has entitlement to the income, it is probably that income will be received and the amount of income receivable can be measured reliably.

Legacies are accounted for as income upon receipt or where the receipt of the legacy is probable; this will be once confirmation has been received from the representatives of the estates that payment of the legacy will be made or property transferred and once all conditions attached to the legacy have been fulfilled. Material legacies which have been notified but not recognised, as income in the Statement of Financial Activities due to the amount receivable cannot be measured reliably are disclosed in a separate note to the accounts with an estimate of the amount receivable.

Page 26 of 48

Service agreement income is recognised as income in the period to which the income relates.

Investment income is recognised on a receivable basis once the amounts can be measured reliably.

Page 27 of 48

SAINT FRANCIS HOSPICE

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 MARCH 2021

1. ACCOUNTING POLICIES (continued)

Goods Donated for Resale

Donated items of goods for resale are not included in the financial statements because the Trustees consider it impractical to be able to assess the amount of donated stocks. This is because there are no systems in place to record these goods until they are sold. A stocktake would incur costs to the Charity which would far outweigh the benefits.

Expenditure

Expenditure is accounted for on an accruals basis once there is an obligation to make a payment to a third party, it is probable that settlement will be required, and the amount of the obligation can be measured reliably. Where possible costs are allocated directly to main expenditure categories of the SOFA, but where this is not possible these are allocated on the bases set out in the note to the accounts. Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred. Expenditure is classified under the following headings:

Costs of Raising Funds comprise direct fundraising costs incurred in seeking donations, legacies and grants from trusts, together with direct costs associated with trading income together with an allocation of indirect support costs.

Expenditure on charitable activities includes the direct costs of providing specialist palliative care and support community services, research and other educational activities undertaken to further the purposes of the charity, together with an allocation of indirect support costs.

Support costs are those costs which are necessary to the delivery of Hospice services but are not part of the direct costs of the expenditure categories in the SOFA. These relate to governance, premises, catering, central administration, finance, IT and HR and Vehicles.

Tangible fixed assets and depreciation

Fixed assets are stated at cost less accumulated depreciation.

Depreciation is calculated to write off the cost of fixed assets other than land on a straight line basis over their estimated useful lives. Fixed assets acquired at a cost of less than £5,000 are not capitalised but shown as expenditure in the Statement of Financial Activities.

Freehold buildings 2% on cost Fixtures, fittings & equipment 25% straight line Motor vehicles 25% straight line Leasehold improvements period of the lease

Investments

Investments include listed investments. Listed investments are a form of basic financial instrument and are initially shown in the financial statements at market value. They are subsequently measured at their fair value as at the balance sheet date using the closing quoted market price. Net gains and losses on the SOFA represent realised and unrealised gains on investments. Realised gains or losses are calculated between sales proceeds and their opening carrying values or their purchase value if acquired subsequent to the first day of the financial year. Unrealised gains or losses are calculated as the difference between the fair value at the year-end and their carrying value.

Stock

Stocks of new goods are stated at the lower of cost and net realisable value. Stocks of donated goods are not included in the financial statements.

Page 28 of 48

SAINT FRANCIS HOSPICE

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 MARCH 2021

1. ACCOUNTING POLICIES (continued)

Debtors

Debtors are recognised at the settlement amount due after taking into account any discounts offered. Prepayments are valued at the amount prepaid net of any discounts due.

Cash and Bank

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

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.

Fund accounting

Funds held by the charity are either:

Unrestricted general funds – these are funds which can be used in accordance with the charitable objects at the discretion of the Trustees.

Designated funds – these are funds set aside by the Trustees out of unrestricted general funds for the specific purposes.

Restricted funds – these are funds that can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Endowment funds – these are funds where the donor has requested that the initial donation remains intact.

Pensions

A defined contribution pension scheme is in operation for the benefit of its employees. The assets of the scheme are held independently from those of the charity in an independently administered fund. The pension costs charged in the financial statements represents the contributions payable during the year.

The majority of staff are members of either the National Health Service Pension Scheme (“the NHS scheme”) or defined contribution schemes operated by the Charity. Contributions are made by both employees and employer. Although the NHS scheme is a defined benefit scheme, the nature of the scheme is such that the Charity cannot identify its share of the scheme’s underlying assets and liabilities. In accordance with FRS102, payments to the NHS scheme have been treated in the same way as contributions to the defined contribution schemes and the payments made by the Charity are charged against the profits of the year in which they become payable.

The Hospice’s employer contribution to the NHS Pension Scheme is at a rate set by the Government Actuary. The Hospice’s employer contribution to defined contribution schemes is in accordance with the rules of the schemes and where applicable autoenrolment rules.

Other employee benefits

Short term benefits including holiday pay are recognised as an expense in the period in which the service is received. Termination benefits are accounted for on an accrual basis and in line with FRS 102.

Financial Instruments

Page 29 of 48

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

Page 30 of 48

SAINT FRANCIS HOSPICE

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 MARCH 2021

Leasing commitments

Rental costs under operating leases are charged to the SOFA over the period of the lease.

2.

DONATIONS AND GIFTS 2021 2020
£000’s £000’s
General donations 3,292 3,467
Hospice UK 1,847 -
HMRC Job Retention Scheme 570 -
grant
Local Authority grants 227 -
------------- --------------
5,936 3,467
====== ======

The donation from Hospice UK, the HMRC Job Retention Scheme grant and the Local Authority grants are a series of one-off receipts due to the Covid-19 pandemic. Included in general donations are restricted donations of £184,000 (2020: £7,000).

3. RESULTS OF RELATED ENTITIES

(a) Net income from trading activities of subsidiary company

Saint Francis Hospice (Trading Company) Limited which is registered in England and Wales, sells new goods in the charity’s shops. The taxable profits of the company are donated directly to Saint Francis Hospice. A summary of the trading results is shown below. There are no material changes in the operating costs of the shops from those incurred last year.

Summary proft and loss account Total Total
2021 2020
£000’s £000’s
Turnover 9 78
Cost of new goods (8) (21)
------------- -------------
Gross proft 1 57
Other operating costs - -
------------- -------------
1 57
Amount donated to Saint Francis Hospice (1) (57)
------------- -------------
Retained in subsidiary company - -
====== ======
The assets and liabilities of the company are:
Current assets 19 75
Creditors: amounts falling due within one year (1) (57)
------------- -------------
Total net assets 18 18
====== ======
Aggregate share capital and reserves 18 18
====== ======

The Shops benefit from and gratefully acknowledge the unpaid efforts of approximately 420 (2020: 552) volunteers.

Page 31 of 48

SAINT FRANCIS HOSPICE

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 MARCH 2021

(b) Net income from linked charity

Saint Francis Hospice Development Trust is linked to Saint Francis Hospice under a Uniting Direction issued by the Charity Commission on 28 December 2006. Since that date there has been no income or expenditure in Saint Francis Hospice Development Trust.

4. RESULTS OF THE CHARITY

As permitted by section 408 of the Companies Act 2006, the Statement of Financial Activities and Income and Expenditure Account for Saint Francis Hospice have not been included in these financial statements. The results of the charity, as disclosed on its Statement of Financial Activities before consolidation, show total income of £12,549,000 (2020: £12,270,000), total expenditure of £10,638,000 (2020: £11,090,000) and investment gains of £879,000 (2020: £590,000 losses). Retained surplus for the year was £2,790,000 (2020: £590,000).

5.

EXPENDITURE Cost of Fundraisin

EXPENDITURE Cost of Fundraisin
g
operatin and Hospice Provision Total Total
g of
shops publicity services Governanc 2021 2020
e
£000’s £000’s £000’s £000’s £000’s £000’s
Direct costs
Staf costs 776 853 6,076 55 7,760 7,867
Nursing supplies - - 185 - 185 145
Catering - - 116 - 116 177
Cleaning 12 - 37 - 49 87
Travel 33 11 66 - 110 133
Support costs
Utilities 40 - 59 - 99 128
Premises 687 - 356 - 1,043 827
Other 57 40 141 - 238 400
Printing,
postage
and
stationery 3 8 27 - 38 57
IT costs 36 71 251 - 358 312
Legal
and		 - - 187 11 198 295
professional
Audit
and		 - - - 25 25 26
accountancy
Pepperell Education
Centre running costs - - 1 - 1 15
Depreciation - - 116 - 116 122
Direct marketing
appeals - 78 - - 78 116
Events - 4 - - 4 (9)
Lottery operations - 125 - - 125 138
Merchandise - - - - - 9
Other
fundraising		 - 104 - - 104 211
costs
Other project costs - - (1) - (1) 55
Governance Costs
reallocation 14 11 66 (91) - -
----------- ------------ ------------- -------- -------------- --------------

Page 32 of 48

Total expenditure 1,658 1,305 7,683 - 10,646 11,111
===== ===== ===== ==== ===== =====

Page 33 of 48

SAINT FRANCIS HOSPICE

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 MARCH 2021

5. EXPENDITURE (Continued)

Support costs are allocated on the basis of estimated usage by the activity. Governance costs have been apportioned on the basis of staff costs.

2020 Comparatives Cost of Fundraising
operating and Hospice Provision of Total
shops publicity services Governance 2020
£000’s £000’s £000’s £000’s £000’s
Direct costs
Staf costs 787 865 6,174 41 7,867
Nursing supplies - - 145 - 145
Catering - - 177 - 177
Cleaning 18 - 69 - 87
Travel 40 13 80 - 133
Support costs
Utilities 51 - 77 - 128
Premises 703 - 124 - 827
Other 154 55 191 - 400
Printing, postage and
stationery 6 12 39 - 57
IT costs 31 63 218 - 312
Legal and professional - - 277 18 295
Audit and accountancy - - - 26 26
Pepperell Education
Centre running costs - - 15 - 15
Depreciation - - 122 - 122
Direct marketing
appeals - 116 - - 116
Events - (9) - - (9)
Lottery operations - 138 - - 138
Merchandise - 9 - - 9
Other fundraising costs - 211 - - 211
Other project costs - - 55 - 55
Governance Costs
reallocation 14 11 60 (85) -
----------- ------------ ------------- -------- --------------
Total expenditure 1,804 1,484 7,823 - 11,111
===== ===== ===== ==== =====

Page 34 of 48

SAINT FRANCIS HOSPICE

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 MARCH 2021

2021 2020
Governance Costs £000’s £000’s
Staf Costs 55 41
Legal and professional 11 18
Audit and accountancy 25 26
------------- -------------
91 85
===== ====
=
2021 2020
£000’ £000’s
s
Net income for the year is stated after
charging:
Auditor’s remuneration - audit 18 16
Auditor’s remuneration - other 5 5
Depreciation 116 122
Operating lease rentals – Land and buildings 569 617
==== ====
6. STAFF COSTS 2021 2020
Numbe Number
r
The average monthly number of full and part time employees
during the year was:
Direct patient services 134 146
Hospice administration 43 46
Fundraising/publicity 29 31
Education services 6 11
Shops company staf 41 41
------------- -------------
253 275
====== ======
The full time equivalent at the year end was:
Hospice and Shops company staf 183 187
====== ======
Employment costs
Salaries 6,213 6,264
Social security costs 514 522
Pension costs 539 514
Other staf costs 56 141
------------- -------------
7,322 7,441
Medical consultants 438 426
------------- -------------
7,760 7,867
====== ======

Page 35 of 48

SAINT FRANCIS HOSPICE

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 MARCH 2021

The number of staf paid over £60,000 during the year over £60,000 during the year was:
The Group The Company
2021 2020 2021 2020
No. No. No. No.
£60,001 - £70,000 5 5 5 5
£80,001 to £90,000 1 1 1 1
======= ======= ====== ======

Senior Management Team remuneration total £510,468 (2020: £523,416) including Pension & Employer NI. Retirement benefits in respect of these employees totalled £37,133 (2020: £36,241).

The Hospice also benefits from, and the Trustees gratefully acknowledge, the inestimable value of the unpaid efforts of the 780 volunteers who give freely of their time in a variety of ways covering a full range of Hospice activities including medical, nursing, administration, fundraising, shops, transport and maintenance.

7. TRUSTEES

None (2020: none) of the Trustees were reimbursed (2020: £nil) for travel expenses and conference fees incurred during the year. No Trustee received remuneration or any other benefits in either the current or comparative year.

8.

TANGIBLE FIXED ASSETS The
Hall		 Other
land freehold
and Property Total
buildings
Land and buildings £000’s £000’s £000’s
Group and company
Cost
At 1 April 2020 4,725 125 4,850
Additions - - -
Disposals - - -
------------- ------------- --------------
At 31 March 2021 4,725 125 4,850
------------- ------------- --------------
Depreciation
At 1 April 2020 2,053 39 2,092
Charge for the year 94 3 97
Disposals - - -
------------- ------------- --------------
At 31 March 2021 2,147 42 2,189
------------- ------------- --------------
Net book value
At 31 March 2021 2,578 83 2,661
====== ====== ======
At 31 March 2020 2,672 86 2,758
====== ====== ======

Freehold land and buildings have not been revalued. The Trustees consider that there is no advantage in obtaining a valuation as the properties are all exclusively used for charitable purposes.

Page 36 of 48

SAINT FRANCIS HOSPICE

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 MARCH 2021

8 TANGIBLE FIXED ASSETS Leasehold Fixtures & Motor
. (continued)
Improvemen Fittings vehicles Total
t
Other tangible fxed assets £000’s £000’s £000’s £000’s
Group and Company
Cost
At 1 April 2020 152 763 184 1,099
Additions - - - -
Disposals - - (16) (16)
------------- ------------- ------------- --------------
At 31 March 2021 152 763 168 1,083
------------- ------------- ------------- --------------
Depreciation
At 1 April 2020 152 763 152 1,067
Charge for the year - - 19 19
Disposals - - (16) (16)
------------- ------------- ------------- --------------
At 31 March 2021 152 763 155 1,070
------------- ------------- ------------- --------------
Net book value
At 31 March 2021 - - 13 13
====== ====== ====== ======
At 31 March 2020 - - 32 32
====== ====== ====== ======

Page 37 of 48

SAINT FRANCIS HOSPICE

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 MARCH 2021

9. FIXED ASSET INVESTMENTS 2021 2020
£000’s £000’s
Group and Company
Quoted investments
Market value at 1 April 2020 4,707 5,324
Additions at cost 1,482 735
Disposals at opening book value (1,224) (762)
Net gains on revaluation 879 (590)
-------------- --------------
At 31 March 2021 – valuation 5,844 4,707
Cash with investment managers 557 209
--------------- ---------------
Market value at 31 March 6,401 4,916
2021
====== ======
At 31 March 2021 – historical cost (including cash) 4,943 4,255
====== ======

All investments are held in the United Kingdom and are valued at bid price. All investments are under the management of Investec Wealth and Investment Limited.

The substantial reduction in the value of investments in the year ended 31 March 2020 was as a result of the Covid-19 pandemic; this has been fully reversed in the year ended 31 March 2021.

Saint Francis Hospice owns 100% of the ordinary share capital of Saint Francis Hospice (Trading Company) Limited, a company registered in England and Wales (see note 3a).

The hospice holds investments in the Hospice Quality Partnership. The nominal value of the investment was £10 at the time of its acquisition. The value of the investment is not readily available or easily quantifiable and consequently, no valuation has been included for this investment in these financial statements.

10. STOCKS Group Group Company Company
2021 2020 2021 2020
£000’s £000’s £000’s £000’s
New goods for resale 8 4 - -
====== ====== ====== ======
11. DEBTORS Group Company
2021 2020 2021 2020
£000’s £000’s £000’s £000’s
Legacies receivable 966 2,250 966 2,250
Other debtors and prepayments 1,781 986 1,781 986
Amounts owed by trading - - 1 57
subsidiary
------------ ------------ ------------- -------------
2,747 3,236 2,748 3,293
===== ===== ===== =====

Page 38 of 48

SAINT FRANCIS HOSPICE

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 MARCH 2021

12. CREDITORS: amounts falling Group Group Company Company
due
within one year 2021 2020 2021 2020
£000’s £000’s £000’s £000’s
Taxation and social security 140 40 140 40
Trade Creditors 171 200 171 200
Other creditors 100 70 100 70
Accruals 383 249 383 249
Deferred income (see below) 34 26 34 26
------------ ------------ ------------ ------------
828 585 828 585
===== ===== ===== =====
Movements in deferred income: Group and Company
£000’s £000’s
Deferred income at 1 April 26 38
Applied during the year 34 26
Released during the year (26) (38)
------------ ------------
Deferred income at 1 March 34 26
====== ======

13. PENSION AND OTHER POST-RETIREMENT BENEFIT COMMITMENTS

The Hospice operates a defined benefit scheme for staff previously employed within the National Health Service. The contributions are determined at a rate set by the Government Actuary on the basis of periodic valuations. The employers contribution rate for the year was 14.38%. The pension cost for the year was £207,380 (2020: £209,098).

The Hospice operates a defined contribution pension scheme for those members of staff not included in the NHS Superannuation Scheme. The assets of the scheme are held separately from those of the Hospice in a fund administered by Aviva. The employers contribution rate was between 6.5% and 8.5%, depending on the employee’s contribution. The pension costs represent contributions payable by the Hospice for pension and death in service benefits, which amounted to £331,316 (2020: £304,771).

14.

FUNDS Unrestricte Restricted Endowme Total
d nt
£000’s £000’s £000’s £000’s
Group
At 1 April 2020 15,541 128 53 15,722
Net movement in funds 2,706 84 - 2,790
------------ -------------- ------------ --------------
At 31 March 2021 18,247 212 53 18,512
====== ===== ===== ======
Company
At 1 April 2020 15,523 128 53 15,704
Net movement in funds 2,706 84 - 2,790
------------ -------------- ------------- --------------
At 31 March 2021 18,229 212 53 18,494
====== ======= ====== ======

Page 39 of 48

SAINT FRANCIS HOSPICE

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 MARCH 2021

14. FUNDS (Continued)
2020 Comparatives
Unrestricte
d
Restricted
Endowme
nt
Total
£000’s
£000’s
£000’s
£000’s
Group
At 1 April 2019
14,622
457
53
15,132
Net movement in funds
919
(329)
-
590
------------
--------------
------------
--------------
At 31 March 2020
15,541
128
53
15,722
======
=====
=====
======
Company
At 1 April 2019
14,604
457
53
15,114
Net movement in funds
919
(329)
-
590
------------
--------------
-------------
--------------
At 31 March 2020
15,523
128
53
15,704
======
=======
======
======

15. COMPANY STATUS

The charity is a company limited by guarantee. In the event of the charity being wound up, each member guarantees the maximum sum of £20. At the year end there were 26 guaranteeing members.

16. ENDOWMENT FUNDS 2021 2020
£000’s £000’s
Group and company
Balance at 1 April 2020 53 53
Income - -
------------- --------------
53 53
Expenditure - -
------------- --------------
Balance at 31 March 2021 53 53
====== ======

These funds represent donations where the donors requested the capital remains intact and the income be used for specific purposes.

17. RESTRICTED FUNDS

The income funds of the charity include restricted funds held on trust for specific purposes:

Balance Balance
1 April Income Expenditur Transfers 31 March
2020 e 2021
£000’s £000’s £000’s £000’s £000’s
Group and
company
Kay Julia Miller Trust 58 - - - 58
Family Support 8 5 (2) - 11
Children In Need - 40 (43) 18 15
Orangeline - 122 (70) 20 72
Young Adult
Transition Group 15 3 (6) - 12
IPU 19 11 (17) - 13
Others 28 3 - - 31
-------------- -------------- ------------- ------------- --------------

Page 40 of 48

128 184 (138) 38 212 ====== ====== ====== ====== ======

Page 41 of 48

SAINT FRANCIS HOSPICE

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 MARCH 2021

2020 Balance Balance
Comparatives
1 April Income Expenditur Transfers 31 March
2019 e 2020
£000’s £000’s £000’s £000’s £000’s
Group and
company
Kay Julia Miller Trust 350 - (72) (220) 58
Family Support 7 4 (3) - 8
Young Adult
Transition Group 16 2 (3) - 15
IPU 51 - (32) - 19
Others 33 1 (6) - 28
-------------- -------------- ------------- ------------- --------------
457 7 (116) (220) 128
====== ======= ====== ====== ======

Children in Need funding has enabled our Child & Family Therapists to support children of those under Saint Francis Hospice care with pre and post bereavement.

Orangeline offers support for people who experience isolation and loneliness and has been funded specifically by a “Big Lottery” grant.

Kay Julia Miller Trust Fund is a bequest received to run Pemberton Place which will be a multi user facility supporting people to enjoy complementary therapies, creative therapies, physiotherapy, active groups, breathe easy groups, and social groups.

Family support restricted funds are donations received specifically for helping and supporting families and young children; included the grant received from Children in Need.

Young Adult Transition Group represent donations towards supporting young adults and their families

The IPU Fund represents donations received for purchasing specialist equipment for our Inpatient Unit.

Other Restricted Funds represent other donations in respect of which the donors have restricted the use of the money.

The transfers were to account for restricted income and expenditure, which had occurred in the prior year but accounted for as unrestricted.

18. DESIGNATED FUNDS

The income funds of the charity include the following designated funds which have been set aside out of unrestricted funds by the Trustees for specific purposes:

Balance Balance
1 April Income Expenditur Transfers 31 March
2020 e 2021
£000’s £000’s £000’s £000’s £000’s
Group and
company
Contingency fund 5,022 - - - 5,022
Fixed Asset fund 2,790 (116) 2,674
Site Development 158 - (43) - 115
fund
Storm Appeal fund 58 - - (58) -

Page 42 of 48

ICT Digital Strategy
fund		 - - - 58 58
Development Reserve
fund 181 - - - 181
Budget fund 1,660 - - - 1,660
Hall Works fund 505 50 (388) (31) 136
-------------- -------------- ------------- -------------- --------------
10,374 50 (547) (31) 9,846
====== ======= ====== ======= ======

Page 43 of 48

SAINT FRANCIS HOSPICE

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 MARCH 2021

18. DESIGNATED FUNDS (CONTINUED)

2020 Comparatives Balance Balance
1 April Income Expenditur Transfers 31 March
2019 e 2020
£000’s £000’s £000’s £000’s £000’s
Group
and
company
Contingency fund 5,022 - - - 5,022
Fixed Asset fund 2,912 (122) 2,790
Site
Development		 158 - - - 158
fund
Storm Appeal fund 58 - - - 58
Development Reserve
fund 286 - (105) - 181
Budget fund 1,660 - - - 1,660
Hall Works fund 500 - (54) 59 505
-------------- -------------- ------------- -------------- --------------
10,596 - (281) 59 10,374
====== ======= ====== ======= ======

The Contingency fund was set up to ensure that Saint Francis Hospice can continue to function without fluctuations in its services to the community. It is intended that this fund is built up to align with the charity’s reserves policy of maintaining free reserves equivalent to twelve months’ operating costs.

The Fixed Asset Fund represents the net book value of fixed assets, excluding amounts funded from restricted income.

Site Development fund represents money received from the disposal of properties set aside to maintain and develop properties owned by the hospice

The Storm Appeal fund was set up to set aside funds to repair the damage caused to the hospice property following a storm in 2014. Subsequently the balance will be used to fund some further repairs to the Hospice property. The fund was closed in during the 2020/2021 financial year.

The ICT Digital Strategy Funds were set up to support a more agile and creative approach to the way services are delivered going forward.

The Development Reserve Fund is held to “pump prime” service development; income streams in line with Strategy and to facilitate Service Pilots.

The Budget fund was set up in 2019 to absorb deficits anticipated to occur based on the charity’s three year strategic plan.

The Hall Works fund represents money designated to meet substantial heating and window replacement project costs.

Page 44 of 48

SAINT FRANCIS HOSPICE

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 MARCH 2021

19. ANALYSIS OF NET ASSETS BETWEEN FUNDS

Endowment Other Unrestricte Unrestricte
d d
funds restricted Funds Funds Total
funds (General) (Designate
d)
£000’s £000’s £000’s £000’s £000’s
Group
Tangible fxed - - - 2,674 2,674
assets
Investments - - - 6,401 6,401
Other net assets 53 212 8,401 771 9,437
----------- ------------- ------------ -------------- ------------
Total net assets 53 212 8,401 9,846 18,512
===== ======= ====== ====== =====
Company
Tangible fxed - - - 2,674 2,674
assets
Investments - - - 6,401 6,401
Other net assets 53 212 8,383 771 9,419
----------- ------------- ------------ -------------- ------------
Total net assets 53 212 8,383 9,846 18,494
===== ======= ====== ====== =====
2020 Endowment Other Unrestricte Unrestricte
Comparatives d d
funds restricted Funds Funds Total
funds (General) (Designate
d)
£000’s £000’s £000’s £000’s £000’s
Group
Tangible fxed - - - 2,790 2,790
assets
Investments - - - 4,916 4,916
Other net assets 53 128 5,167 2,668 8,016
----------- ------------- ------------ -------------- ------------
Total net assets 53 128 5,167 10,374 15,722
===== ======= ====== ====== =====
Company
Tangible fxed - - - 2,790 2,790
assets
Investments - - - 4,916 4,916
Other net assets 53 128 5,149 2,668 7,998
----------- ------------- ------------ -------------- ------------
Total net assets 53 128 5,149 10,374 15,704
===== ======= ====== ====== =====

Page 45 of 48

SAINT FRANCIS HOSPICE

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 MARCH 2021

20. COMMITMENTS UNDER OPERATING LEASES

At the year end, the charity and group were committed to make the following payments in total in respect of operating leases.

Land and buildings Other Other
2021 2020 2021 2020
£000’s £000’s £000’s £000’s
Expiry date:
Within one year 601 542 12 8
Between two and fve years 1,796 1,491 21 7
In over fve years 722 462 - -
----------- ----------- ------------- -------------
3,119 2,495 33 15
===== ===== ====== ======

The rents payable under these leases in respect of land and buildings all relate to shop operations and are subject to renegotiation at various times.

21.

FINANCIAL INSTRUMENTS 2021 2020
£000’s £000’s
Financial assets
Financial assets measured at fair value through proft 7,510 5,361
or loss
====== ======
Financial liabilities
Financial liabilities measured at amortised cost 554 449
====== ======

Financial assets measured at fair value through profit or loss comprise funds in bank current accounts. Financial liabilities measured at amortised cost comprise trade creditors and accruals at the balance sheet date.

22. RELATED PARTIES

The company has taken advantage of the exemptions conferred by Section 33 of FRS 102 - Related Party Transactions; not to disclose transactions between the hospice and its wholly owned subsidiary.

Page 46 of 48

SAINT FRANCIS HOSPICE

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 MARCH 2021

23 RECONCILIATION OF CHANGES IN RESOURCES TO NET CASH INFLOW/(OUTFLOW) . FROM OPERATING ACTIVITIES

. FROM OPERATING ACTIVITIES
2021 2020
£000’s £000’s
Net income for the reporting period 2,790 590
(as per the statement of fnancial
activities)
Adjustments for:
Depreciation of tangible fxed assets 116 122
(Gains)/losses on investments (879) 590
Dividends and interest from Investments (135) (205)
(Increase)/decrease in stock (4) (4)
(Proft)/loss on sale of fxed asset - -
Decrease/(increase) in debtors 489 (703)
Increase/(decrease) in creditors 243 (598)
------------ ------------
Net cash provided by/(used in) operating 2,620 (208)
activities
===== =====
24 ANALYSIS OF CASH AND CASH 2021 2020
. EQUIVALENTS £000’s £000’s
Cash in Hand 465 359
Notice deposits 7,045 5,002
------------- -------------
Total cash and cash equivalents 7,510 5,361
===== =====

Analysis of the balances of cash as shown in the balance sheet

Change in year
2021 2020 2021 2020
£000’s £000’s £000’s £000’s
Saint Francis Hospice 7,499 5,291 2,208 (145)
Saint Francis Trading (Company)
Limited 11 70 (59) (3)
------------ ------------ ----------- -----------
7,510 5,361 2,149 (148)
===== ===== ===== =====

Page 47 of 48

SAINT FRANCIS HOSPICE

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 MARCH 2021

25 . COMPARATIVE CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (2020):

Unrestricted Restricted Endowment Total
funds funds funds 2020
£000’s £000’s £000’s £000’s
INCOME FROM:
Donations and gifts 3,460 7 - 3,467
Legacies 2,734 - - 2,734
Charitable activities:
Service agreements with
Clinical Commissioning Groups 3,390 - - 3,390
Trading Activities:
-
Shops		 2,364 - - 2,364
-
Education Centre		 26 - - 26
Investment Income and Interest 205 - - 205
Other income 105 - - 105
---------------- ----------------- ------------------ ---------------
Total income 12,284 7 - 12,291
---------------- ----------------- ------------------ ---------------
EXPENDITURE:
Raising Funds:
Cost of operating shops 1,804 - - 1,804
Fundraising and publicity 1,484 - - 1,484
Charitable activities:
Hospice services 7,707 116 - 7,823
----------------- ---------------- ---------------- ---------------
Total expenditure 10,995 116 - 11,111
---------------- ----------------- ------------------ ---------------
Net income/(expenditure)
before investment gains/ 1,289 (109) - 1,180
(losses)
(Losses)/gains on investments (590) - - (590)
----------------- ---------------- ---------------- ---------------
Net Income/(expenditure) 699 (109) - 590
Transfers between funds 220 (220) - -
----------------- ---------------- ---------------- ---------------
Net movement in funds 919 (329) - 590
----------------- ---------------- ---------------- ----------------
Reconciliation of funds:
Total Funds brought Forward 14,622 457 53 15,132
----------------- ---------------- ---------------- ---------------
Total Funds carried forward 15,541 128 53 15,722
====== ====== ====== ======

Page 48 of 48