OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

2021-03-31-accounts

Company no. 01494909 Charity no. 280093

Prospect Hospice Limited Report and Audited Financial Statements 31 March 2021

Prospect Hospice Limited

Reference and administrative details

For theyear ended 31 March 2021 For theyear ended 31 March 2021
Company number 01494909
Charity number 280093
Registered office and Moormead Road
operational address Wroughton
Swindon
Wiltshire
SN4 9BY
Patrons Jonathan Wilkes
Helen Browning
Sarah Troughton
Trustees Trustees, who are also directors under company law, who served during
the year and up to the date of this report were as follows:
David Barrand
Clive Bassett resigned 28 September 2020
Pradeep Bhardwaj
Sheila Bryant
Eleanor Butler
John Gilbert
Caroline Hallatt
Sarah Jones
Joseph Lewis appointed 28 September 2020
Douglas Looman
Jennifer Seavor appointed 28 September 2020
Penny Tidbury
Lindsay Whittam
Chief executive officer Irene Watkins
Senior leadership team Helen Baxter Director of Finance
Carolyn Bell Director of Services
Warren Finney Director of Community Development
Jo Hollingsworth Director of People
Medical director Sheila Popert appointed 1 April 2020
Bankers HSBC plc
Unit 6
The Lock
Canal Walk
Swindon
SN1 1LD

1

Prospect Hospice Limited

Reference and administrative details

For the year ended 31 March 2021

Investment managers CCLA Senator House 85 Queen Victoria Street London EC4V 4ET Vanguard Investments UK Limited The Walbrook Building 25 Walbrook London EC4N 8AF Auditors Godfrey Wilson Limited Chartered accountants and statutory auditors 5th Floor Mariner House 62 Prince Street Bristol BS1 4QD

2

Prospect Hospice Limited

Report of the trustees

For the year ended 31 March 2021

The trustees present their annual report together with the audited financial statements of Prospect Hospice Limited for the year 1 April 2020 to 31 March 2021. This report incorporates the strategic report as required by company law.

Objectives and Activities

a) POLICIES AND OBJECTIVES

Prospect Hospice’s objects are to promote the relief of sickness in such ways as the charity shall from time to time think fit, and in particular (but without prejudice to the generality of such objects):

Prospect Hospice’s vision is excellent, personalised and compassionate care for everyone affected by a life-limiting illness. Our mission is to lead, provide and influence excellent care, so that everyone affected by a life-limiting illness can access specialist personalised care when and where they need it. We work with our community to ensure that our vision and mission remains relevant to their needs.

b) ACTIVITIES FOR ACHIEVING OBJECTIVES

Prospect Hospice’s principal activities are to provide timely and responsive care and support for people living with and dying from advanced and progressive life-limiting illness. This is achieved through:

3

Prospect Hospice Limited

Report of the trustees

For the year ended 31 March 2021

Highlights in the year

2020 was the hospice’s 40th anniversary year, and a series of special events and fundraising activities had been lined up to celebrate this milestone, starting with the visit by hospice patron HRH the Duchess of Cornwall back in January.

In January 2020, the hospice was also celebrating getting back onto a more solid footing, with a new executive team established and new board governance procedures that had been introduced to give trustees a much higher level of assurance. In addition, the planning that had been done would have seen the hospice return to a balanced budget by the start of the 2021/22 financial year.

But this was all overtaken by global events.

The Covid-19 pandemic struck towards the end of the 2019/20 financial year and by the start of the 2020/21 financial year the first national lockdown was in place. The pandemic has been the dominant feature of this past year and, for the hospice, it has made for a particularly tough environment given that approximately 75% of funding comes from public donations generated through events and fundraising activity and income from retail operations. All normal fundraising events had to be cancelled and our shops were shut for a total of seven months as a consequence of the government lockdowns.

These events created a precarious financial position and, at the same time, required changes to working practices across the hospice. New procedures were quickly put in place to protect patients and their families, as well staff and volunteers, including limiting contact wherever it was practical. Initially the hospice was not allowed to make use of the NHS procurement services for PPE, but we successfully sought out alternative sources to ensure we had sufficient supplies. This sometimes required a lot of creativity, including some volunteers sewing together gowns for clinical staff.

It is a testament to the dedication and resilience of staff and volunteers that the hospice has managed to continue to provide uninterrupted services to the community throughout this time and the trustees are incredibly proud of everyone who played their part in this.

The previous two years have been extremely challenging for staff, volunteers and trustees to address the ‘requires improvement rating’ given to the hospice in 2018 by the CQC and they have worked hard to address the issues raised. This work resulted in the removal of the CQC warning notice following a re-inspection in November 2020, however, this was not a full inspection and the rating could not be changed.

Unfortunately the pandemic stopped all CQC face to face visits, which prevented them re-rating our services. A full inspection was carried out at the end of July 2021, and everyone is looking forward to the result of that inspection.

4

Prospect Hospice Limited

Report of the trustees

For the year ended 31 March 2021

Apart from the massive effort from everyone to cope with the pandemic, other notable accomplishments during the year included:

MAIN ACTIVITIES UNDERTAKEN TO FURTHER THE CHARITY’S PURPOSES FOR PUBLIC BENEFIT

Under the Charities Act, all charities must have charitable purposes or aims that are for the public benefit. The Charities Act 2011 sets out thirteen aims which are recognised for charitable purposes, of which Prospect Hospice meets three – the advancement of health, the relief of those in need by ill health or disability, and the advancement of education. All services provided to patients, families and carers are free of charge to the user.

The trustees refer to the Charity Commission’s general guidance on public benefit when reviewing the charity’s aims and objectives.

Achievements and Performance

a. REVIEW OF ACTIVITIES

The pandemic, and the associated pressure on the finances of the hospice, brought with it an urgent need to restructure services. This work was completed during the year and the hospice is now a much more efficient organisation as a result. During this process the executive team and the trustees were aware of the impact that decisions would have on the lives of staff made redundant and therefore sought to re-assign people to other roles wherever possible, resulting in only seven staff redundancies. The financial recovery of voluntary income streams as a direct result of the pandemic is expected to take at least 12 to 18 months.

Supporting patients and families

Throughout the year, despite the challenges posed by the pandemic restrictions and lockdowns, the support for patients and families has continued without interruption. During the year there were 2,996 referrals to the hospice and the patient services teams undertook 89,817 patient and carer related consultations.

The hospice has had an average active caseload of around 635 patients at any one time over the last year. Whether care and support services are being delivered at the hospice in Wroughton or in the community, such as in a patient’s own home, the care provided has made a difference to patients and those that matter to them. This was expressed by patients and families from their feedback, including:

Malcolm

“We were introduced to Prospect Hospice and that was the day everything changed for us. Before then we felt that everyone we met had been treating the illness. Finally, we felt they were treating Angie, the person.

5

Prospect Hospice Limited

Report of the trustees

For the year ended 31 March 2021

“This was a place for making memories and the team arranged for us to have use of the beautiful garden room for an afternoon. The whole family came, including our nine grandchildren. We ordered pizza and watched a film. The children were each given a unique patchwork blanket to snuggle under and, to our delight, they were allowed to keep them to remember this special time.

“During her month in the hospice, Angie received second to none medical care. I never left her side until she died on 3 February earlier this year. She was just 59.

“I was struggling and felt I had nowhere to turn. Fortunately, Louise from the Prospect Hospice bereavement team stepped in to provide very much needed support in coping with grief throughout my tough time self-isolating. Although we’ve not been able to meet in person, I really do not know what I’d have done without her.

“Prospect Hospice was there for my dear wife and family even during the pandemic. I can never thank them enough for their all-encompassing support.”

Chris

“Prospect Hospice is the most reliable service helping me through this. They have been an everpresent support for me and my family, just knowing that they are there.

"I started going to day therapy, and took part in sessions that helped me manage my breathing better, and classes about how I could exercise and a session on nutrition and how that could help me live life with my condition. I felt energised. I made friends with people who knew what I was going through and we were able to help and advise each other.

“Knowing that Prospect Hospice is there for me has been a huge support. If I need their help, they’re there. If they say they’ll do something, they do it. They’re like an old friend – and you really know who your friends are when you’re ill.”

Claire

“Dad was a very proud man, and the thing that was most important to him was keeping his dignity. Every single one of the staff were lovely with him, and made sure that he was able to remain dignified throughout the time he was there. It really is an amazing place, and the people there were like family to him, helping him stay calm and still feel good about himself."

Clare

“Prospect Hospice was incredibly caring and supportive of Claire and the family, and the staff there were determined the time she had left would be as lovely, and normal, as possible.

“When it was her husband Paul’s birthday they brought out banners and cake in Claire’s room to help them celebrate.

“It was never any problem how long visitors stayed, and in the last few days before Claire died we were able to take her out into the hospice’s lovely garden and enjoy the sunshine together.

“The atmosphere was as far from a hospital as you can get, and we are so very lucky in this area that if we or our loved ones ever need end-of-life care, we’ve got this fantastic service and no one has to pay a penny for any of the care received.”

6

Prospect Hospice Limited

Report of the trustees

For the year ended 31 March 2021

Sharon

“It was absolutely amazing in there – it didn’t feel like an end-of-life facility at all. It felt more like a fivestar private hospital, but with really specialist care. It didn’t feel gloomy or sad, but a really nice place for Claire to be.

"She could be wheeled out into the lovely garden there – Paul even brought their cat in to see her. My husband Brendan, Claire’s brother, used to have to visit pretty late in the evening, around 9.30pm, but that was never an issue at all. All those things might seem like small things, but they were actually really important and made Claire’s last days as good as they could be.

“It was hard for everyone – she was only 44 when she died and their sons were just 15 and 18 at the time – so the fact that Claire and the family were so well cared about really helped.

“We are all so, so lucky to have Prospect Hospice in Swindon. It’s not only free for everyone, but the standard of care and the consideration patients and their families get is fantastic. Not every area in the country has a community hospice like we have, so we should never take it for granted.”

Investing in staff

The ASPIRE values that were introduced last year have helped the hospice deal with the challenges of the pandemic and the subsequent restructuring. Staff are proud of these values, which were created by them (not management) and against which everyone in the hospice is measured, up to and including the board. The staff forum has continued its great work in other areas, helping to resolve day to day matters for staff to support change and inclusive team working.

The trustees and executive team have not stood still with the continued development of the organisation either. A new pay structure has been put in place which brings clinical staff much closer to NHS pay scales. This will remove the disadvantage that the hospice has had when competing for nurses in the local area. The positive staff survey in the autumn highlights how far the culture among staff has changed in the last three years and the restructure has meant that there is also much more opportunity for collaborative working.

As the ASPIRE values embed themselves and mature, the executive team has initiated an equality, diversity and inclusion programme, with one of the trustees acting as a sponsor and getting directly involved in the definition of the programme. This work seeks to ensure that the hospice represents all parts of our community, and that everyone’s contribution to the running of services is valued.

Innovation and adaptation

Prospect Without Walls (PWW) is a new way of the hospice working in, and engaging with the local community, and that kicked off this year. The planning and structural work has all been done, and full benefits will start to be seen now that everything is starting to open up again. The hospice will continue to connect with the community through shops and events and through giving care where needed, but the intention of PWW is to engage more directly with more of the community. Through PWW the hospice will run courses, provide therapy and run events that will all seek to help people directly, as well as educate people on what the hospice does and the services it provides.

The NHS commissioning structure has changed this year with the amalgamation of the BaNES (Bath and North East Somerset), Swindon and Wiltshire CCGs into the single BSW ICS (Integrated Care System) End of life care is an area of care where BSW wants a consolidated approach that delivers the same level of care to the whole population of BSW.

7

Prospect Hospice Limited

Report of the trustees

For the year ended 31 March 2021

A body has been set up to oversee this on behalf of BSW, and the chief executives of Prospect Hospice, Dorothy House and Salisbury Hospice are joint chairs of this group. As such, the hospice is well positioned to be able have a strong voice and to influence future service delivery for the population of Swindon and NE Wiltshire.

One major area of improvement in the board has been the engagement of trustees at all levels of the organisation through a buddying programme, although it had to be scaled back because face-to-face visits were curtailed for most of the year. A new board framework was also put in place to provide more assurance and this has helped the board to focus attention on the most important issues. The framework enables information to flow upwards and downwards through the organisation and to be reviewed by trustees at specialist committees and board meetings.

The pandemic has seen a reduction in the number of hours that volunteers have been able to work. Some have been self-isolating, whilst those who volunteer in shops have been unable to work while shops were closed. It was also important to keep the number of people coming into the hospice to an absolute minimum in order to reduce the risk of infection. The trustees and executive team recognise the tremendous value that volunteers bring and as infection rates fall across the country, the hospice will be making sure that they feel it is safe for them to return when they are ready.

Investing in new technology

As with most organisations above a certain size, the hospice has to make ongoing investments in technology. The journey to switch our patient management system from Crosscare to SystmOne began this year. This system will enable direct links with all GP surgeries in the area.

Another new system being implemented is Vantage. This is being trialled across the retail operation prior to roll out across all the hospice’s service departments. This is an essential part of improving the management of risk , enable real-time reporting, and will ultimately be used in every department and provide trustees with an additional tool for monitoring how effectively the hospice is mitigating those risks.

a. GOING CONCERN

The trustees are satisfied that the charity is able to continue as a going concern and the accounts have been prepared on this basis. In assessing going concern the trustees have taken into account the following:

▪ 2021/22 budget and long term financial plans

8

Prospect Hospice Limited

Report of the trustees

For the year ended 31 March 2021

Through the financial modelling it became clear that the next 12 -18 months would continue to be very challenging. The hospice delivered its cost reduction programme in 20/21 reducing operating costs from £9.1m to £7.4m, with the new annual cost base for 21/22 of £7.5m. At this level of expenditure the hospice would have achieved its plans of being back at a balanced budget for the start of 21/22. However given the impact on income recovery as a direct consequence of the pandemic with income from normal sources for 21/22 being estimated at £5.8m versus normal income level of £7.5m and no further government assistance, the hospice has budgeted a financial deficit of £1.7m (£1.5m cash) for 21/22.

To fund this deficit whilst protecting reserves and to enable income streams to recover, the hospice decided to seek financial borrowing for the sum of £1.5m through the CBILS scheme. This funding was secured in June 2021 from HSBC and was received in mid July 2021. The term is 6 years, but repaid over 5 years as there are no repayments in the first 12 months. The interest on the loan from month 13 is at 3.99%. The loan is a legal mortgage with HSBC and under the terms of the mortgage the bank has a fixed and floating charge over the hospice assets. There is a legal charge over the value of the hospice land based on the historical cost of the land as at the balance sheet date 31 March 2021.

In securing this finance the hospice had to provide the bank with detailed financial forecasts including cash-flow for a 5 year period from 21/22 as part of the bank due diligence processes.

As stated above, the next 12 - 18 months is critical in rebuilding our income streams. With the relaxing of lockdown restrictions the first 6 months will be key to establishing the speed of the recovery to enable the hospice to take the necessary financial and operational actions to ensure that the hospice remains financially sustainable in both the short and longer term.

In the first quarter of the financial year post the lifting of lockdown restrictions on the 12th April, retail and fundraising income is ahead of the budget by £200k and costs are down on budget by £65k. The legacy pipeline has grown to £900k, which is £350k higher than the legacy income target for the year.

Detailed discussion of financial performance including forward looking rolling forecasts and any changes in the financial outlook are undertaken at the Finance & Income Generation Committee on a quarterly basis and escalated where necessary to the full board of trustees.

▪ Cashflow

The long term financial modelling for cashflow has taken into account the loan finance repayments from 22/23. The receipt of the cash from the loan finance in July 2021 will bridge the 21/22 deficit driven by the shortfall in income as a consequence of the pandemic. It will also ease the pressures from cash timing variances particularly relating to legacy income which is notoriously difficult to predict.

Cashflow is closely monitored by the finance team on a daily, weekly and monthly basis. A rolling 18 month forecast for income and expenditure and cashflow is also updated regularly. Any cause for concern can be highlighted and flagged for discussion and corrective measures to be taken.

9

Prospect Hospice Limited

Report of the trustees

For the year ended 31 March 2021

b. PRINCIPAL RISK AND UNCERTAINTIES

The principal risks and uncertainties identified by the trustees are:

c. FINANCIAL OVERVIEW

The financial performance of the charity is set out in the attached financial statements.

The result stated on page 21 is a net income of £373k compared to a net cost of £1,621k in the previous year. This result depicts the continued pressures on all streams of voluntary income impacted by the Covid-19 global pandemic offset by the special government Covid-19 support grants. There was also a net gain on investments of £651k in the year. The community has continued to support the hospice as much as was possible in an exceptionally tough year.

Incoming resources

As set out on page 21, total incoming resources, including income from charitable activities, was £7,125k for the year (£7,261k in 2019/20).

Resources expended

Prospect Hospice’s expenditure on a recurring basis (set aside) to provide care and support for patients, families and carers has decreased by £1,297k over the previous year. Expenditure in generating fundraising income was down on the previous year as a direct consequence of the lower fundraising income.

d. RESERVES POLICY

In line with the Charity Commission Guidance (Charities Reserves CC19), the trustees are aware of the need to secure the viability of Prospect Hospice beyond the immediate future.

It is the policy of the hospice to aim to keep at least 6 months of future operating costs as free reserves and as an absolute minimum to keep a level of reserves sufficient to meet its liabilities in the event of a winding up of the organisation. The trustees will keep the level of reserves under continuous review. If the level of free reserves fall below the policy level the trustees will review all reserves and their purpose and may choose to transfer previously designated reserves into free reserves to enable them to utilise where most needed for the provision of the hospice’s charitable aims.

As outlined in the financial statements as at 31 March 2021 general reserves were £5.8m. Of this total £1.3m relates to unrestricted fixed assets. General funds have increased during the year by £0.5m.

The reserves policy also allows for the designation of funds at the trustees discretion. As at 31 March 2021 designated funds were unchanged from 2019/20.

10

Prospect Hospice Limited

Report of the trustees

For the year ended 31 March 2021

e. MATERIAL INVESTMENTS POLICY

The trustees have taken note of the guidance given by the Charity Commission in their booklets “Charities’ Reserves (CC19)” and “Trustee Act 2000”. As at 31 March 2021 the investment portfolio had a market value of £3.6m (2020 £3.4m). The investment strategy is set out below:

Additionally £452k is held as investment land as at 31 March 2021, this valuation is unchanged from March 2020.

Restricted funds are held in accordance with the accounting policy which is set out on page 25 .

Structure, Governance and Management

a. CONSTITUTION

The charity and the group is registered as a charitable company limited by guarantee and was set up by a Memorandum of Association on 1 May 1980.

Prospect Hospice Limited (the charity) is a registered charity, and is constituted as a charitable company limited by guarantee and does not have a share capital.

11

Prospect Hospice Limited

Report of the trustees

For the year ended 31 March 2021

The charity has a wholly owned trading subsidiary, Prospect Hospice Trading Limited, which is a retailer of new goods and operates the café within the Hospice. The subsidiary company produced a trading loss of £1k in the year.

b. METHOD OF APPOINTMENT OR ELECTION OF TRUSTEES

The management of the charity and the group is the responsibility of the trustees who are elected and co-opted under the terms of the Articles of Association.

The charity’s board of trustees regularly reviews the mix of its skills, and if any needs are identified then applicants with relevant skills and backgrounds who are eligible to meet the required time commitment are sought and recruited. The board also anticipate forthcoming gaps in its skills mix that will arise through the rotation and retirement of longstanding trustees.

The board of trustees constitutes a broad cross section of people with healthcare and business skills and experience, reflecting the work of the Hospice.

The board interviews applicants for trustee vacancies, and their suitability is evaluated against a preagreed set of criteria, set by a nominations committee of existing trustees.

On appointment, trustees are invited to attend induction training alongside new recruits to the hospice’s staff and volunteer group.

All trustees are offered a tailored induction programme to aid with familiarisation of the charity and their responsibilities as trustees.

c. PAY POLICY FOR STAFF

Following approval by the board of trustees a new pay structure for all staff was planned to be implemented in the second half of the 2020/21 financial year. This was partially delayed due to the pandemic but will be implemented from 1 April 2021. Employees are paid at market rate within a tolerance of plus/minus 5% of the median quartile. This tolerance creates a competitive salary range.

The grade and scope of job roles is determined through a job evaluation process and the application of Prospect Hospice’s in-house job evaluation procedures.

Any organisation wide and exceptional pay awards are granted at the discretion of the trustees.

Prospect Hospice will monitor its pay practice to ensure that it complies with equal pay for work of equal value legislation and the best principles of equity. All remuneration activity will be monitored to ensure that no gender or other bias arises in practice and that a fair approach on remuneration is achieved across the organisation.

d. ORGANISATIONAL STRUCTURE AND DECISION MAKING

Responsibility for the charity’s overall strategy, the monitoring of its progress, the management of risk and legal compliance rests with the board of trustees, which meets every 3 months.

In addition, committees reporting to the full board on Patient Services, Finance & Income Generation, Audit & Risk, and People & Resources also meet on a regular basis.

12

Prospect Hospice Limited

Report of the trustees

For the year ended 31 March 2021

The board of trustees makes all corporate policy, strategy and budget decisions, with day-to-day responsibility for the running of the organisation delegated by the board to the Chief Executive.

e. RISK MANAGEMENT

The trustees have assessed the major risks to which the charity and the group is exposed, in particular those related to the operations and finances of the charity and the group, and are satisfied that systems and procedures are in place to mitigate exposure to the major risks.

Under the risk management policy, potential risks to the organisation are identified and reviewed regularly.

Clinical governance is given significant attention to ensure that the Hospice complies with all relevant legislation and best practice.

External consultants are engaged to provide increased support on risk management and health and safety matters as and when required.

The Audit Committee reviews all aspects of risk and reports to the board of trustees on a regular basis.

f. FUNDRAISING

The Charities Act (Protection and Social Investment) 2016 came into effect in November 2016. It states new requirements for annual statements about fundraising and these are covered below:

The charity’s approach to fundraising activity, and in particular whether a professional fundraiser or commercial participator was used:-

Prospect Hospice’s approach to fundraising is to ensure that any direct fundraising expenditure incurred will maximise a return on investment whilst maintaining excellent relationships with supporters, reflecting best practice within the sector and protecting the vulnerable.

During the year we employed one professional canvassing agency for door to door canvassing for our hospice lottery. We did not employ any telephone marketing agencies.

Details of any voluntary fundraising schemes or standards, which the charity or anyone fundraising on its behalf has agreed to:-

Prospect Hospice is a member of the Fundraising Regulator. We pay the voluntary levy and agree to maintain compliance to the regulations.

We have a supporter promise on our website.

Whether and how the charity monitored fundraising activities carried out on its behalf:-

Fundraising activities are monitored by the Finance and Income Generation Committee made up of trustees which reports to the board of trustees. Any contracts relating to Professional Fundraisers are scrutinised by the Director in charge of fundraising and reported by exception where necessary to the Committee.

13

Prospect Hospice Limited

Report of the trustees

For the year ended 31 March 2021

How many complaints the charity or anyone acting on its behalf has received about fundraising for the charity:-

We have a complaints procedure and all complaints are recorded. In 2020/21 we received 13 complaints out of a total of 19,622 donations made by individuals and organisations that supported Prospect Hospice during the year.

Complaints are monitored by the Executive Team and the Finance and Income Generation Committee to identify trends, address complaints and ensure best practice is followed.

What the charity has done to protect vulnerable people and others from unreasonable intrusion on a person’s privacy, unreasonable persistent approaches or undue pressure to give. In the course of, or in connection with fundraising for the charity:-

Prospect Hospice has a clear Fundraising and Vulnerable Adults Policy, which our fundraisers adhere to. As part of this procedure, anyone identified as a vulnerable person will immediately be marked as not contactable on our database. We will only work with Professional Fundraisers who have their own clear Vulnerable Adults policy and who train their operators in how to deal with vulnerable adults. All complaints are reviewed and addressed in line with our complaints procedure.

What the charity has done to ensure its fundraising activities comply with new Data Protection legislation (GDPR).

Prospect Hospice Income Generation team set up a working party to ensure the fundraising database and all data policies followed within the fundraising department are fully compliant with the new European GDPR regulations, introduced in May 2018. This includes robust measures on how we contact supporters and how a supporter can change the way they hear from us.

Plans for future periods

Securing the financial future of the hospice is the highest priority. This means not only getting the shops re-opened and restarting big fundraising events (when it is safe to do so), but also to continue to grow and diversify existing and new income opportunities, some of which were being researched and trialled during the pandemic.

The hospice has been fortunate to have had a good level of retained reserves, and these have helped to address the shortfall between income and expenditure, which is their purpose. However, the hospice has been running a financial deficit since 2018/19 financial year and it is essential that it returns to a balanced and sustainable budget within as short a timeframe as possible. The target is to achieve this by 2022/23 but this is highly dependent upon voluntary income streams returning to pre Covid-19 levels.

The hospice cannot survive without the support of the community and initiatives like Prospect Without Walls (PWW) will bring the organisation closer to them. Last year the plans had to slow down due to the pandemic but everyone is excited about the new programme and looking forward to new engagement activities.

14

Prospect Hospice Limited

Report of the trustees

For the year ended 31 March 2021

The hospice’s current strategy comes to an end in 2022 and the pandemic has only increased the need for a fresh look at the purpose of the hospice and how it best serves the community. Trustees recently held a strategy session to begin this next phase and work will continue throughout the coming year. Staff, volunteers and members of the community will all be consulted on how they think the hospice needs to develop over the coming three years and beyond.

The new BSW structure has formed quickly and it will be a big area of focus for trustees and the executive team in the coming year, not least to ensure that the hospice can satisfy commissioners in the services delivered and the outcomes achieved, but also in the coordination with neighbouring hospices to provide the same level of care across the area. Thanks to the strong position of influence held within BSW for end-of-life care, the board is hopeful that the hospice continues to have control over its destiny with commissioners.

The trustees and executive team are grateful for the CQC for prioritising a full inspection in July 2021, and we hope that it will confirm the massive amount of change that the hospice has gone through over the past three years. A change to the rating will be the formal sign that the charity is now a wellled, healthy, effective and efficient organisation, but also an organisation that provides its services in a caring and compassionate way.

There will be further strengthening of the board this year with the appointment of trustees who have a wide range of governance experience. All trustees are volunteers and their workload has increased dramatically over the past three years, especially in work done outside of board and committee meetings. They have all risen to the challenge and helped to guide and support the executive team in what they have achieved for the organisation and are thanked for all of their dedication, insight and support.

Finally, in the coming year, the chair of the board, David Barrand, will be standing down after giving over ten years devoted service to the hospice. David is proud to have served as chair through what has been a challenging period of time. His fellow trustees and the executive team thank him on behalf of everyone at the hospice for his service and contribution. The hospice has come a long way in the past three years and coped with difficult and unprecedented circumstances but there is a lot more still to be done, especially in the area of board development. David’s successor, Robin Bailey, will have the opportunity to devote more time to the strategy and to ensuring that the hospice is financially and operationally fit to face the next forty years.

TRUSTEES’ RESPONSIBILITIES STATEMENT

The trustees (who are also directors of the charity for the purposes of company law) are responsible for preparing the trustees' report and the financial statements in accordance with 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).

The trustees are required to prepare financial statements for each financial year, which give a true and fair view of the state of affairs of the charity and the group and the incoming resources and application of resources, including the net income or expenditure, of the charity and the group for the year. In preparing those financial statements the trustees are required to:

15

Prospect Hospicg Limlted Report of the trustees For the ar ended 31 March 2021 Select suitable accounting policies and then apply them consislenlly- Observe the methods and principles In the Charities SORP., Make judgements and accounting estimates that are reasonable and prudent; Slate whether applicable accounting standards and statements of recommended practice have been followed. subject to any material departures disclosed and explained In the financial slalements,. and Prepare the financial statements on the going con￿rn basis unless il is inappropriate to presume that the charitable group will continue in operation. The Iruslees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and the group and which enable them to ensure that the financial statements comply with the Companies Act 2006. The Iruslees are also responsible for safeguarding the assets of the charity and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Disclosure of infomiatlon to auditor Each of the persons who are trustees at the time when this trustees. report is approved has confirmed that: So far as that trustee Is aware, there is no relevant audit information of which the charitsble group's auditors are unaware, and That Injslee has takerb all the steps that ought lo have been taken as a Injslee in order to be aware of any information needed by the charitable group's auditor in connection with preparing their report and to estsblish that the charitable group's auditors are aware of that infomiation. The trustees are responsible for the maintenance and integrity of the corporate and financial infomiallon included on the charitable CoMpan￿S website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. Auditors The auditors, Godfrey Wilson, havg indicated their willingness to ¢ontinue in office. The trustees will propose a motion re-appointing the auditors at the Annual General Meeting. This report. including the strategic report. was approved by th8 board of trustees on 12 August 2021 and signed on their behalf by.. Davld Barrand - Chair 16

Independent auditors' report

To the members of

Prospect Hospice Limited

Opinion

We have audited the financial statements of Prospect Hospice Limited (the 'parent charity') and its subsidiary (the 'group') for the year ended 31 March 2021 which comprise the consolidated statement of financial activities, consolidated and parent balance sheets, consolidated statement of cash flows and the related 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 the 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 and parent charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

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

Other information

The trustees are responsible for the other information. The other information comprises the information included in the annual report other than the group and parent charity financial statements and our auditor’s report thereon. Our opinion on the group and parent charity 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.

17

Independent auditors' report

To the members of

Prospect Hospice Limited

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.

Opinion 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 charity and their environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ 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 the trustees

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

Our 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 or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

18

Independent auditors' report

To the members of

Prospect Hospice Limited

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 procedures we carried out and the extent to which they are capable of detecting irregularities, including fraud, are detailed below:

(1) We obtained an understanding of the legal and regulatory framework that the charity operates in, and assessed the risk of non-compliance with applicable laws and regulations. Throughout the audit, we remained alert to possible indications of non-compliance.

(2) We reviewed the charity’s policies and procedures in relation to:

(3) We inspected the minutes of trustee meetings.

(4) We enquired about any non-routine communication with regulators and reviewed any reports made to them.

(5) We reviewed the financial statement disclosures and assessed their compliance with applicable laws and regulations.

(6) We performed analytical procedures to identify any unusual or unexpected transactions or balances that may indicate a risk of material fraud or error.

(7) We assessed the risk of fraud through management override of controls and carried out procedures to address this risk. Our procedures included:

▪Testing the appropriateness of journal entries;

▪Assessing judgements and accounting estimates for potential bias;

▪Reviewing related party transactions; and

▪Testing transactions that are unusual or outside the normal course of business.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. Irregularities that arise due to fraud can be even harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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.

19

Independont audltors. report To the members of Pros oct Hos ke Limited Use of our r8port Th18 report is made solely to Ihe charitys Memb￿5. as a b￿. in accordance wth Chapter 3 of Part 16 of the Cornpantes Act 2(K￿. Our audit th has been undertaken so that we might stsl8 lo the charivs members those matters we are required to state to them in an auditorfs r8port and for no other purpose. To the fullest extent penntited by law. we do not accept or assume r8sponsibility to an￿ne other than the charitys members as a iKxJy. ts i)ur audit th. for th18 rewL or for thg oplnhlns we have formed. Dal•: 23 August 2021 Allson Godfrey FCA {S6nlor Statutory Audltor) For and on behalf of: GODFREY WILSON LIMITED Chortered aceounlanls and slaluiryy audltorn 5th Floor Martner House 62 Prince Stro91 Brfslol 8S14QD

Prospect Hospice Limited

Consolidated statement of financial activities (incorporating an income and expenditure account)

For the year ended 31 March 2021

Note
Income from:
Donations and legacies
3
Charitable activities
4
Other trading activities
5
Investments
6
Total income
Expenditure on:
Raising funds:
Voluntary income
Fundraising trading
Investment management
Charitable activities
Total expenditure
8
Net gains on investments
Net movement in funds
9
Reconciliation of funds:
Total funds brought forward
Total funds carried forward
Net expenditure before investment
gains		 Restricted
£000
114
3,732
-
-
3,846
-
-
-
3,986
3,986
(140)
-
(140)
1,645
1,505		 Unrestricted
£000
1,249
910
1,103
17
3,279
560
1,903
14
940
3,417
(138)
651
513
5,269
5,782		 2021
Total
£000
1,363
4,642
1,103
17
7,125
560
1,903
14
4,926
7,403
(278)
651
373
6,914
7,287		 2020
Total
£000
2,478
2,159
2,561
63
7,261
642
2,246
13
6,223
9,124
(1,863)
242
(1,621)
8,535
6,914

All of the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above. Movements in funds are disclosed in note 23 to the accounts.

21

Prospect Hospicg Limitsd Consolidated balance sheets As at 31 March 2021 The group The group The charity The charlty 2021 2020 2021 2020 £000 £000 £000 £000 Note Flxed assets Tangible assets Investment property Investments 12 13 14. 15, 16 2,688 452 3.565 2,878 452 3,364 2,688 452 3,565 2.878 452 3.364 6,705 6,694 6,705 6.694 Current asset$ Stocks Debtors Cash al bank and in hand 17 18 54 861 670 71 957 696 54 942 587 53 1.005 665 1,585 1,724 1.583 1.723 Liabilities Creditors.. amourbls falling due thln 1 year 19 1.003 1,504 1,001 1.503 Net current assets 582 220 582 220 Net assets 22 7,287 6,914 7,287 6,914 Funds Restricted funds Unrestricted funds.. General funds 23 1.s05 1,645 1,505 1,645 5.782 5.269 5,782 5.269 Total charity funds 7.287 6,914 7,287 6.914 Approved by the trustees on 12 August 2021 and signed on their behalf by David Barrand - Chalr 22

Prospect Hospice Limited

Consolidated statement of cash flows

For the year ended 31 March 2021

Net cash provided by / (used in) operating activities
Net movement in funds
Adjustments for:
Depreciation charges
(Gains) / losses on investments
Dividends, interest and rents from investments
Investment management fees
Decrease / (increase) in stock
Decrease / (increase) in debtors
Increase / (decrease) in creditors
Net cash provided by / (used in) operating activities
Cash flows from investing activities:
Dividends, interest and rents from investments
Purchase of tangible fixed assets
Proceeds from the sale of investments
(Increase) / decrease in cash held in investment portfolio
Purchase of investments
Net cash provided by / (used in) investing activities
Increase / (decrease) in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year		 2021
£000
373
206
(651)
(17)
-
17
96
(501)
(477)
17
(16)
-
450
-
451
(26)
696
670		 2020
£000
(1,621)
277
(242)
(63)
13
22
(604)
671
(1,547)
63
(12)
3,441
(310)
(2,032)
1,150
(397)
1,093
696

Analysis of changes in net debt

The charity has not provided an analysis of changes in net debt as it does not have any long term financing arrangements.

23

Prospect Hospice Limited

Notes to the financial statements

For the year ended 31 March 2021

1. Accounting policies

a) Basis of preparation

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities in preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Prospect Hospice Limited meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note.

The charity's functional and presentational currency is the pound sterling and the accounts are presented in round thousands.

b) Group accounts

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

c) Going concern basis of accounting

The accounts have been prepared on the assumption that the charity is able to continue as a going concern. The trustees have taken into account the additional financial risk presented as a result of the Covid-19 global pandemic and are satisfied that the plans in place to mitigate this risk, including contingency planning and the receipt in July 2021 of loan financing of £1.5m, are sufficient. Further detail is provided in the trustees' annual report.

d) Income

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

Income from the government and other grants, whether 'capital' grants or 'revenue' grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.

24

Prospect Hospice Limited

Notes to the financial statements

For the year ended 31 March 2021

1. Accounting policies (continued)

d) Income (continued)

Income received in advance of future events or lottery draws is deferred until the event takes place or the lottery draw is run and criteria for income recognition are met. Income from contracts received in advance of service delivery is deferred to the period to which it relates.

e) Donated services and facilities

Donated professional services and donated facilities are recognised as income when the charity has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use by the charity of the item, is probable and the economic benefit can be measured reliably. In accordance with the Charities SORP (FRS 102), general volunteer time is not recognised.

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

Donated goods for resale are recognised as income at their fair value upon receipt, which is deemed to be the expected proceeds from sale less the expected costs of sale. Any difference in the resale value is charged or credited to the statement of financial activities during the year.

f) Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity: this is normally upon notification of the interest paid or payable by the bank.

g) Funds accounting

Unrestricted funds are available to spend on activities that further any of the purposes of the charity. Designated funds are unrestricted of the charity which the trustees have decided at their discretion to set aside to use for a specific purpose. Restricted funds are donations which the donor has specified are to be solely used for particular areas of the charity's work or for specific projects being undertaken by the charity. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements. The net book value of buildings, and significant improvements to buildings, which are funded by restricted monies are treated as restricted.

25

Prospect Hospice Limited

Notes to the financial statements

For the year ended 31 March 2021

1. Accounting policies (continued)

h) Expenditure and irrecoverable VAT

Expenditure is recognised once there is a legal or constructive 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.

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

Costs of raising funds are those costs incurred in attracting voluntary income and those incurred in trading activities that raise funds.

Costs of charitable activities include those items that can be directly attributed to the activities and include a proportion of support costs.

In implementing the hospice strategic plan, where alongside continued direct delivery of high quality patient services, we seek to positively influence the care provided by other organisations and individuals, we need to understand where we are allocating and spending our budget against these aims. The hospice has continued to set out the allocation of costs by strategic aim, accounting for time taken by staff in direct care roles on education and influencing.

Governance costs include those incurred in the governance of the charity and its assets and are primarily associated with constitutional, statutory and regulatory requirements.

i) Allocation of support costs

Support costs include central functions and have been allocated to activity cost categories on a basis consistent with the use of resources. Facilities costs including reception and housekeeping are allocated by space occupied and catering costs are allocated based on meals produced. All other costs are allocated based on headcount.

j) Tangible fixed assets

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

Hospice buildings straight line over the remaining useful life to 2045
Leasehold improvements 10 years' straight line for hospice improvements, or
3 years' straight line for shop improvements
Equipment for care and support 10 years' straight line, or 3 years depending on
nature of equipment
Other equipment and vehicles 10 years' straight line, or 3 years depending on
nature of equipment

Items of equipment are capitalised where the purchase price exceeds £500.

k) Investment property

Investment land is included in the balance sheet at its fair value. No depreciation is charged. Gains or losses on investment land are shown on the statement of financial activities (SOFA).

26

Prospect Hospice Limited

Notes to the financial statements

For the year ended 31 March 2021

1. Accounting policies (continued)

l) Investments

n) Debtors

o) Cash at bank and in hand

p) Creditors

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

q) Financial instruments

r) Pension costs

The charity participates in an NHS defined benefit scheme, and a Royal London (formerly Scottish Life) defined contribution scheme. Only ex NHS employees are eligible to join the NHS scheme. There are no further liabilities other than that already recognised in the SOFA.

s) Accounting estimates and judgements

In the application of the charity's accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

27

Prospect Hospice Limited

Notes to the financial statements

For the year ended 31 March 2021

1. Accounting policies (continued)

s) Accounting estimates and judgements

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

The key sources of estimation or uncertainty that have a significant effect on the amounts recognised in the financial statements include depreciation - see note 1(j) above - and accrued legacy income, which is included within debtors - see note 1(d) above.

2. Prior period comparatives

Prior period comparatives
Income from:
Donations and legacies
Charitable activities
Other trading activities
Investments
Total income
Expenditure on:
Raising funds:
Voluntary income
Fundraising trading
Investment management
Charitable activities
Total expenditure
Net expenditure before investment gains
Net gains on investments
Net movement in funds		 Restricted
£000
£000
177
2,301
2,149
10
-
2,561
-
63
2,326
4,935
-
642
-
2,246
-
13
2,389
3,834
2,389
6,735
(63)
(1,800)
-
242
(63)
(1,558)
Unrestricted		 2020
Total
£000
2,478
2,159
2,561
63
7,261
642
2,246
13
6,223
9,124
(1,863)
242
(1,621)

28

Prospect Hospice Limited

Notes to the financial statements

For the year ended 31 March 2021

3. Income from donations and legacies

Donations
Prospect fundraising events
Community fundraising
Boxes income
Legacies
Trusts income
In memorium
Total donations and legacies
Prior period comparative
Donations
Prospect fundraising events
Community fundraising
Boxes income
Legacies
Trusts income
In memorium
Total donations and legacies
4.
Income from charitable activities
COVID funding
Swindon CCG
Wiltshire CCG
Great Western Hospitals NHS Foundations Trust
Health England (GPST1 doctors funding)
Swindon Borough Council
Education and training income
Other
Total charitable activities		 Restricted
£000
£000
-
555
46
7
-
213
-
32
-
166
68
70
-
206
114
1,249
Restricted
£000
£000
-
381
88
87
-
231
-
85
-
1,251
89
32
-
234
177
2,301
Restricted
£000
£000
1,650
895
1,254
-
305
-
323
-
184
-
16
-
-
4
-
11
3,732
910
Unrestricted
Unrestricted
Unrestricted		 2021
Total
£000
555
53
213
32
166
138
206
1,363
2020
Total
£000
381
175
231
85
1,251
121
234
2,478
2021
Total
£000
2,545
1,254
305
323
184
16
4
11
4,642

29

Prospect Hospice Limited

Notes to the financial statements

For the year ended 31 March 2021

4.
Income from charitable activities (continued)
Prior period comparative
Restricted
£000
£000
Swindon CCG
1,288
-
Wiltshire CCG
324
-
Great Western Hospitals NHS Foundations Trust
386
-
Health England (GPST1 doctors funding)
135
-
Swindon Borough Council
16
-
Education and training income
-
3
Other
-
7
Total charitable activities
2,149
10
5.
Income from other trading activities
2021
Restricted
Total
£000
£000
£000
Shops and retail
-
596
596
Lottery income
-
498
498
Catering income
-
9
9
Total other trading activities
-
1,103
1,103
Unrestricted
Unrestricted		 2020
Total
£000
1,288
324
386
135
16
3
7
2,159
2020
Total
£000
1,998
510
53
2,561

All other trading activity income was unrestricted in the prior year.

6. Investment income

Investment income
Income from investment portfolio
Income from cash held at UK banks
Total investment income		 Restricted
£000
£000
-
17
-
-
-
17
Unrestricted		 2021
Total
£000
17
-
17		 2020
Total
£000
62
1
63

All investment income was unrestricted in the prior year.

30

Prospect Hospice Limited

Notes to the financial statements

For the year ended 31 March 2021

7. Government grants

8. Expenditure

Expenditure
Raising funds
Costs of generating voluntary income
Fundraising trading
Costs of goods sold in shops and café
Lottery prizes and overheads
Retail costs
Investment management
Investment management fees
Charitable activities
In-patient unit
Community care
Care at Great Western Hospital
Influencing and education
Governance costs
Total expenditure		 Direct
costs
£000
343
39
114
1,180
1,333
14
1,499
1,191
96
777
116
3,679
5,369		 Support
costs
£000
217
-
11
559
570
-
550
339
39
319
-
1,247
2,034		 2021
Total
£000
560
39
125
1,739
1,903
14
2,049
1,530
135
1,096
116
4,926
7,403

31

Prospect Hospice Limited

Notes to the financial statements

For the year ended 31 March 2021

8.
Expenditure (continued)
Prior year comparative
Raising funds
Costs of generating voluntary income
Fundraising trading
Costs of goods sold in shops and café
Lottery prizes and overheads
Retail costs
Investment management
Investment management fees
Charitable activities
In-patient unit
Community care
Care at Great Western Hospital
Influencing and education
Governance costs
Total expenditure		 £000
425
63
165
1,395
1,623
13
1,919
1,339
165
939
223
4,585
6,646
Direct
costs		 £000
217
2
12
609
623
-
695
437
58
448
-
1,638
2,478
Support
costs		 £000
642
2020
Total
65
177
2,004
2,246
13
2,614
1,776
223
1,387
223
6,223
9,124

32

Prospect Hospice Limited

Notes to the financial statements

For the year ended 31 March 2021

9. Net movement in funds

This is stated after charging:

Depreciation
Operating lease payments
Trustees' remuneration
Trustees' reimbursed expenses
Auditors' remuneration:
Statutory audit (including VAT)		 2021
£000
206
309
Nil
Nil
12		 2020
£000
277
342
Nil
Nil
10

10. Staff costs and numbers

Staff costs were as follows:

Salaries and wages
Social security costs
Pension costs		 2021
£000
4,864
412
335
5,611		 2020
£000
5,691
404
347
6,442

Included within salaries and wages above are termination and redundancy payments of £14k (2020: £55k).

Average number of employees
Full time equivalents:
Medical
In-patient nurses
Community care
Care at Great Western Hospital
Influencing and education
Catering and housekeeping
Income generation
Facilities and reception
Admin and support
Management		 2021
No.
185
2021
No.
6
17
29
3
1
6
49
2
21
7
141		 2020
No.
206
2020
No.
3
25
39
5
1
6
47
2
21
7
156

33

Prospect Hospice Limited

Notes to the financial statements

For the year ended 31 March 2021

10. Staff costs and numbers (continued)

During the year, bank staff employed by the hospice are used to cover short term absences, vacancies and training. When bank staff are not available external agency staff are then used. Total payments for bank staff made through the payroll in the year was £351k (2020: £314k).

At 31 March 2020 there were 31 members of the NHS pension scheme (2020: 43), and 131 members of the Royal London Group Personal pension plan (2020: 138).

The number of higher paid employees was:
£60,001 - £70,000
£70,001 - £80,000
£80,001 - £90,000
£90,001 - £100,000
£190,001 - £200,000		 2021
No.
2
2
-
1
1
6		 2020
No.
3
1
1
-
-
5

The total emoluments, including termination, redundancy and other restructuring fixed term contractual payments, paid to key management personnel (6.0 FTE) for the year was £470k (2020: 5.7 FTE £587k). Pension contributions for these employees amounted to £23k (2020: £22k).

11. Taxation

The charity is exempt from corporation tax as all its income is charitable and is applied for charitable purposes.

34

Prospect Hospice Limited

Notes to the financial statements

For the year ended 31 March 2021

12. Tangible fixed assets: group and charity

Cost
At 1 April 2020
Additions
At 31 March 2021
Depreciation
At 1 April 2020
Charge for the year
At 31 March 2021
Net book value
At 31 March 2021
At 31 March 2020		 Hospice
land and
buildings
£000
£000
4,242
217
6
-
4,248
217
1,594
182
101
7
1,695
189
2,553
28
2,648
35
Leasehold
improvements		 Equipment
for care
and
support
£000
423
5
428
362
34
396
32
61		 £000
976
5
981
842
64
906
75
134
Other
equipment
and vehicles		 Total
£000
5,858
16
5,874
2,980
206
3,186
2,688
2,878

Included in hospice land and buildings is freehold land at a cost of £307k which is not depreciated.

13. Investment property: group and charity

Investment property: group and charity
Market value at 1 April 2020
Unrealised gain on revaluation
Market value at 31 March 2021
Historic cost		 2021
£000
452
-
452
153		 2020
£000
153
299
452
153

The investment land shown relates to a share of land that was given in a legacy. The ownership of the land has been transferred into the names of the three beneficiaries of which Prospect Hospice is one. The latest valuation of the land was carried out on 31 March 2021 by Chesters Commercial. This concluded there was no material change in valuation. The remaining proportion of land is held at arable value. The trustees consider this a fair estimate of land value as at 31 March 2021.

35

Prospect Hospice Limited

Notes to the financial statements

For the year ended 31 March 2021

14. Investments: group and charity

Investments: group and charity
Market value at 1 April 2020
Additions
Disposals proceeds
Realised and unrealised gains / (losses)
Investment management fees
Cash movement
Market value at 31 March 2021
Historic cost
Group investments comprise:
Listed investments		 UK
£000
3,565		 Overseas
£000
-		 2021
£000
3,364
-
-
651
-
(450)
3,565
2,464
2021 Total
£000
3,565		 2020
£000
4,533
2,032
(3,441)
(57)
(13)
310
3,364
2,464
2020 Total
£000
3,364

All listed investments are held in Vanguard 60% Equity fund and CCLA Common Investment Fund.

36

Prospect Hospice Limited

Notes to the financial statements

For the year ended 31 March 2021

15. Subsidiary undertakings

Prospect Hospice Trading Limited

Prospect Hospice Trading Limited is a wholly owned subsidiary of Prospect Hospice Limited with an issued share capital of two ordinary shares of £1 each. It trades in the purchase and sale of ‘new goods’ within our retail operations and operates a cafe within the hospice. This company makes a donation to the charity of its taxable profits under the gift aid scheme.

Turnover
Cost of sales
Gross profit
Administrative expenses
Profit / (loss) on ordinary activities before taxation
Tax on profit / (loss) on ordinary activities
Profit for the financial year after taxation
Changes in equity
Total retained profit brought forward
Total comprehensive income for the year
Gift aid distribution to parent charity
Total retained losses carried forward
The aggregate of the assets, liabilities and funds was:
Assets
Liabilities
Funds		 2021
£000
39
(38)
1
(2)
(1)
-
(1)
-
(1)
-
(1)
2021
£000
85
(86)
(1)		 2020
£000
93
(61)
32
(30)
2
-
2
-
2
(2)
-
2020
£000
53
(53)
-

16. Parent charity

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

Gross income
Results for the year		 2021
£000
7,087
373		 2020
£000
7,198
(1,622)

37

Prospect Hospice Limited

Notes to the financial statements

For the year ended 31 March 2021

17. Stock
Goods for resale
18. Debtors
Trade debtors
Amounts owed by group undertakings
Tax recoverable
Prepayments and accrued income
19. Creditors: amounts due within 1 year
Trade creditors
Accruals
Other taxation and social security
Other creditors
Deferred income (see note 20)
20. Deferred income
At 1 April 2020
Deferred during the year
Released during the year
At 31 March 2021		 2021
2020
£000
£000
54
71
2021
2020
£000
£000
350
740
-
-
45
76
466
141
861
957
2021
2020
£000
£000
1
48
302
489
103
103
19
44
578
820
1,003
1,504
2021
2020
£000
£000
820
67
578
820
(820)
(67)
578
820
The group
The group
The group
The group		 2021
2020
£000
£000
54
53
2021
2020
£000
£000
350
740
84
51
42
73
466
141
942
1,005
2021
2020
£000
£000
1
48
300
488
103
103
19
44
578
820
1,001
1,503
2021
2020
£000
£000
820
67
578
820
(820)
(67)
578
820
The charity
The charity
The charity
The charity		 2021
2020
£000
£000
54
53
2021
2020
£000
£000
350
740
84
51
42
73
466
141
942
1,005
2021
2020
£000
£000
1
48
300
488
103
103
19
44
578
820
1,001
1,503
2021
2020
£000
£000
820
67
578
820
(820)
(67)
578
820
The charity
The charity
The charity
The charity
820

Deferred income relates to contract income received in advance of provision of services, fundraising income collected in advance of events and lottery income collected in advance of the draw.

38

Prospect Hospice Limited

Notes to the financial statements

For the year ended 31 March 2021

21. Financial instruments measured at fair value

21. Financial instruments measured at fair value
2021
2020
£000
£000
Financial assets measured at fair value
4,017
3,816
22. Analysis of group net assets between funds
£000
Tangible fixed assets
1,416
Investment property
-
Fixed asset investments
-
Current assets
89
Current liabilities
-
Net assets at 31 March 2021
1,505
Prior year comparative
£000
Tangible fixed assets
1,558
Investment property
-
Fixed asset investments
-
Current assets
87
Current liabilities
-
Net assets at 31 March 2020
1,645
Restricted
funds
The group
Restricted
funds		 2021
2020
£000
£000
4,017
3,816
General
funds
Total
funds
£000
£000
1,272
2,688
452
452
3,565
3,565
1,496
1,585
(1,003)
(1,003)
5,782
7,287
General
funds
Total
funds
£000
£000
1,320
2,878
452
452
3,364
3,364
1,637
1,724
(1,504)
(1,504)
5,269
6,914
The charity
Total
funds
£000
2,688
452
3,565
1,585
(1,003)
7,287
Total
funds
£000
2,878
452
3,364
1,724
(1,504)
6,914

39

Prospect Hospice Limited

Notes to the financial statements

For the year ended 31 March 2021

23. Movements in funds

Restricted funds
Building funds
Costs of equipment
Running costs
Total restricted funds
General funds
Total unrestricted funds
Total funds
Unrestricted funds		 At 1 April
2020
£000
1,464
94
87
1,645
5,269
5,269
6,914		 Income
£000
£000
-
(106)
-
(36)
3,846
(3,844)
3,846
(3,986)
3,279
(3,417)
3,279
(3,417)
7,125
(7,403)
Expenditure		 Gains /
(losses)
£000
-
-
-
-
651
651
651		 £000
1,358
58
89
At 31
March
2021
1,505
5,782
5,782
7,287

Restricted funds

Building funds

This relates to cash received from the capital appeal to build the hospice in Wroughton and cash received from the Department of Health in 2007, 2010 and 2014 for building works at the hospice. Also included in this fund are building costs for the new outreach centre at Savernake Hospital. The building costs related to this income have been incurred in previous years. The expenditure cost for this year is the depreciation of the related assets.

Other restricted funds relate to grants, donations and legacies which are received for specific purposes. These are held as restricted funds until spent, most of these funds are utilised in the year of receipt.

General funds

The charity aims to keep at least 6 months of future operating costs as reserves to ensure a reliable and continuous service over the longer term. This enables us to absorb setbacks and take advantage of change and opportunity. The year end figure, excluding the balance held in fixed assets, represents approximately 6.5 months’ worth of future operating expenditure.

40

Prospect Hospice Limited

Notes to the financial statements

For the year ended 31 March 2021

23. Movements in funds (continued) Prior year comparative

Restricted funds
Building funds
Costs of equipment
Running costs
Total restricted funds
Designated funds:
Fixed assets
Legacies
Committed expenditure
Shops refurbishment
Total designated funds
General funds
Total unrestricted funds
Total funds
Unrestricted funds		 £000
1,570
130
8
1,708
1,117
650
1,199
230
3,196
3,631
6,827
8,535
At 1 April
2019		 Expenditure
£000
£000
-
(106)
-
(36)
2,326
(2,247)
2,326
(2,389)
-
-
-
-
-
(389)
-
(26)
-
(415)
4,935
(6,320)
4,935
(6,735)
7,261
(9,124)
Income		 £000
-
-
-
-
(1,117)
(650)
(810)
(204)
(2,781)
2,781
-
-
Transfers
between
funds		 £000
-
-
-
-
-
-
-
-
-
242
242
242
Gains /
(losses)		 £000
1,464
94
87
At 31
March
2020
1,645
-
-
-
-
-
5,269
5,269
6,914

24. Pension commitments

The charity has active members in an NHS defined benefit scheme and a Royal London (formerly Scottish Life Group) Personal Pension Plan (RL). Only ex NHS employees are eligible to join the NHS scheme. All other employees are entitled to join the RL plan. The pension charge represents contributions payable by the charity to these funds.

RL Scheme

The assets of the RL scheme are held separately from those of the charity in a separately administered fund. The pension cost charge represents contributions payable by the charity to the fund and amounted to £179k (2020: £173k).

NHS Scheme

The NHS scheme is a multi-employer defined benefit pension scheme. As the charity is unable to identify its share of the assets and liabilities of the scheme on a consistent and reliable basis, the scheme is treated by the charity as if it were a defined benefit contribution scheme, in accordance with FRS 102. The pension cost charge represents contributions payable by the charity to the fund and amounted to £146k (2020: £161k).

41

Prospect Hospice Limited

Notes to the financial statements

For the year ended 31 March 2021

25. Operating lease commitments

The group and charity had operating leases at the year end with total future minimum lease payments as follows:

follows:
The group The charity
2021 2020 2021 2020
£000 £000 £000 £000
Amount falling due:
Within 1 year 196 273 196 273
Within 1 - 5 years 341 529 341 529
Over 5 years 41 43 41 43
578 845 578 845

26. Contingent assets

There are some legacies which have been notified to the charity at 31 March 2021 for which the amount receivable cannot be ascertained. These financial statements include payments received on account but not any estimates for future amounts receivable. Indications are that the estimated value of these potential legacies is in the region of £760k (2020: £184k).

27. Related party transactions

No members of the board of trustees received any remuneration for their services or received any reimbursement of expenses (2020: nil).

Other than the transactions with its subsidiary, there were no other related party transactions during the year.

28. Post balance sheet events

In June 2021, Prospect Hospice received £1.5m in loan financing from HSBC under the CBILS scheme (Coronavirus Business Interruption Loan Scheme). The term is 6 years, but the loan is repaid over 5 years as there are no repayments in the first 12 months. The interest on the loan from month 13 is at 3.99%. The bank has a fixed and floating charge over the hospice assets. There is a legal charge over the value of the hospice land based on the historical cost of the land as at the balance sheet date 31 March 2021.

42