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2023-03-31-accounts

Company no. 01494909 Charity no. 280093

Prospect Hospice Limited Report and Audited Financial Statements 31 March 2023

Prospect Hospice Limited

Reference and administrative details

Reference and administrative details Reference and administrative details
For theyear ended 31 March 2023
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:
Robin Bailey resigned 26 September 2022
Pradeep Bhardwaj
Sheila Bryant
Eleanor Butler
Caroline Hallatt resigned 26 September 2022
Kevin Howard
Helen Jones appointed 26 September 2022
Sarah Jones
Joseph Lewis
Julie Marshman appointed 26 September 2022
Jennifer Seavor resigned 26 September 2022
Penny Tidbury resigned 26 September 2022
Shelley Whitehead resigned 26 September 2022
Lindsay Whittam resigned 26 September 2022
Chief executive officer Irene Watkins resigned 31 March 2023
Jeremy Lune appointed 1 May 2023
Senior leadership team Helen Baxter Director of Finance
Carolyn Bell Director of Patient Services
Warren Finney Director of Community Development
Jo Hollingsworth Director of People
Medical director Sheila Popert
Bankers HSBC plc
Unit 6
The Lock
Canal Walk
Swindon
SN1 1LD

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Prospect Hospice Limited

Reference and administrative details

For the year ended 31 March 2023

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

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Prospect Hospice Limited

Report of the trustees

For the year ended 31 March 2023

The trustees present their annual report together with the audited financial statements of Prospect Hospice Limited for the year 1 April 2022 to 31 March 2023. This report incorporates the strategic report as required by company law.

Objectives and activities

a. POLICIES AND OBJECTIVES

The charity’s objects are restricted to the provision of specialist end-of-life care, including physical, psychological, social and spiritual care and otherwise 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. The charity’s 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:

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Prospect Hospice Limited

Report of the trustees

For the year ended 31 March 2023

Highlights in the year

2022 saw the emergence of a more 'normal' hospice following the pandemic. Our mass participation events started to take place once again which meant we were better able to raise the vital funding needed to pay for the running of our much needed services.

While fundraising activities were able to return, the hospice's financial position remained a concern as we didn’t know how the public would respond. 75% of our income is generated by our community but many had struggled during the pandemic and were now faced with a cost of living crisis. While we knew they wanted to support us, we also knew many simply wouldn’t be able to.

However, the community we serve is incredible and this was reflected in the support they gave us when we increased the price of our lottery – something we had not done since its inception over 20 years ago. While we did naturally see some people leave our lottery, many stayed with us and helped us to double the annual income of our lottery to over £750k.

Volunteers also returned to many of the positions that they’d been unable to carry out and have been delighted to return to their roles to support the hospice, including in our Heart of the Hospice café which reopened to the public after being closed for over 900 days.

Clinically, the pandemic continued to impact our patient care as many of the restrictions remained in place for clinical settings. Nevertheless, we were able to gather groups of our patients and carers together for support sessions again and we were able to provide more care in homes and out in our community. Our control measures mean that we have not had any Covid-19 outbreaks in our care settings.

To improve patient care and link with other local care providers, we have implemented SystmOne to hold integrated patient records. This has significantly improved access to the most current and accurate patient information, freeing our nursing staff to focus on what they do best: care for patients.

In 2022 we worked with our staff to refresh the strategic direction for the charity. Using their knowledge and expertise to define how we can better support our patients and their families over the next five years. With this we are focused on engaging our community early in the conversations to destigmatise death and dying.

The new vision of the hospice focuses on creating a community where death is no longer a taboo; where everyone lives and dies well. This is supported by our mission to work with and through others, using our skills and expertise so that people have a choice and support at the end of their life. To achieve this, we work with our community to ensure that our work remains relevant to their needs.

In line with this new strategy, we also unveiled a new brand for the hospice; elevating the charity to reflect the outstanding professionalism of our care. The new look and feel reflects the evolution of our work, combining elements that the hospice is well known for to create a brand that reflects the charity now and where we aspire to be in the future.

At the end of March 2023, we said goodbye to our chief executive, Irene Watkins. Irene led the hospice team through our most challenging times and to achieve an outstanding CQC assessment.

We truly value her contribution and wish her well. Her replacement, Jeremy Lune, will join the charity in May 2023.

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Prospect Hospice Limited

Report of the trustees

For the year ended 31 March 2023

Other notable achievements in the year include:

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

Under the Charities Act (2011), all charities must have charitable purposes or aims that are for the public benefit. The Charities Act 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

While we expected it to take at least 12 to 18 months to financially recover from the pandemic, this has been exacerbated by the cost of living crisis. While the hospice income has improved thanks to all our shops being open and events taking place, we have again had to prioritise where our income is best used.

We managed to deliver our patients services this year thanks to the generosity of our community, however a large portion of this came from over £1m donated via gifts in wills to the charity – income we can’t always guarantee. Over the last few years, we’ve been unable to rely solely on our fundraising and retail generation activities and gifts in wills have often filled the income gap. While we plan to actively promote how much legacy does to help care for local people (around one in five patients at the hospice is cared for thanks to a legacy), we recognise that this is a very volatile income stream. We know our future is dependent upon growing our sustainable income streams.

Supporting patients and families

We are focussed on ensuring that our patients continue to receive outstanding care. While some Covid-19 restrictions were still in place for healthcare workers, our staff are now well versed in their implementation. They have taken advantage where they can and have ensured that our patient care has never been compromised. Thanks to the diligence of our staff, we have had no Covid incidents.

During the year, there were 1,497 new patients registered with the hospice. 208 of these were admitted to our inpatient unit (IPU) to help care for those with more complex needs. The rest were cared for in the community, mainly in their own homes. Each month, on average, 690 patients received support from the hospice in some way. Overall, there were 1,523 patient contacts.

With the support of NHS funding, we have extended our Single Point of Contact (SPoC) service to 7 day working. This service has demonstrated improved collaboration between service providers, helping coordinate care provision to the benefit of patients whilst relieving the load on staff.

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Prospect Hospice Limited

Report of the trustees

For the year ended 31 March 2023

We have also introduced new posts in the clinical team. Specifically, a quality lead with responsibility for leading and developing quality and audit across clinical services. This post is leading engagement with the Bath and North East Somerset, Swindon and Wiltshire Integrated Care Board (BSW) quality improvement network. They will be rolling out a new model of quality improvement in line with the NHS ensuring we’re all aligned and talking the same language. This role is a key part of ensuring we retain our ‘Outstanding’ status with CQC.

Other key achievements this year included:

What our patients and their loved ones say about Prospect Hospice

Kim

“We and the Prospect Hospice staff thought Pete [Kim’s husband] would probably pass within a few days, but although he was semi-conscious, he was still with us the following Saturday. One of the brilliant things was that we could stay in one of the charity’s lodges on site, so we were close by all the time. And they really didn’t mind that there were a lot of us in Pete’s room – they completely got how important family was to Pete“.

“Every minute we were there, the staff went above and beyond for us and Pete. They always made sure he was clean and tidy, which was important to him. It was our grand-daughter’s birthday while he was there, and they were perfectly happy with 11 visitors and a roomful of balloons“.

“On the Tuesday, they offered to wheel his bed out into the garden, and a robin flew down and perched on the end of his bed. It felt magical – I’ve loved anything with a robin on it ever since. And Pete’s present to me – our dog, Lexi – was allowed to visit him and curl up on his bed“.

“One of the things I’ll never forget is that a Prospect Hospice nurse offered to shave him after he had died. That meant so much to me. I knew that he wouldn’t want to look anything but smart, even in death – and while she did that two robins flew down and watched“.

“Pete dying was the worst thing that had ever happened to me, but Prospect Hospice made it the best it could be“. As soon as Pete arrived at the hospice in the ambulance they said ‘Don’t worry, it’s going to be all right’ and they made it right“.

“Until you’ve experienced Prospect Hospice – especially the little things that aren’t medically related but really, really matter to you – you can’t imagine how important they are. We are so lucky to have them in our area – not everywhere has a hospice, after all. They made us feel as if we were at home – it felt as if they wrapped their arms around the whole family and hugged us all. We can never thank them enough for that.”

Rosina

“My anxiety levels were through the roof – I didn’t sleep for a week and didn’t go out of the house. I was so anxious, I couldn’t even walk upstairs – I just sat in the chair, not wanting to move“.

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Prospect Hospice Limited

Report of the trustees

For the year ended 31 March 2023

“Then the Prospect Hospice nurse suggested virtual reality. I’d used a VR headset before, with my grandson, and when I put it on David Attenborough got me to breathe in and out slowly, and I could feel myself relaxing immediately. I was in a forest. Then he asked me to find things like birds and butterflies, then to pick up a stone and throw it into the river, and follow the hoops it makes in the water. It’s very relaxing“.

“It literally took just moments to get used to it – and once I removed the headset afterwards I was really settled and calmed down. It enabled me to walk upstairs for the first time in days. I used it twice a day at first, but after a month I only needed to use it once a day, and now I don’t need it at all, as I can go back into that place anytime I want. I can go into the forest with David Attenborough anytime I want, without a headset, it’s so stuck in my mind“.

“VR helped me to get to grips with the fact that I’ve got a serious illness, and the breathing techniques it gave me helped an awful lot. I think for anyone who suffers anxiety as I did, this is a fantastic way of coping and getting through it.”

Justin

“Prospect Hospice called us really early on, and until then we hadn’t realised that they offer such a range of extra care and support. Once they told us how they could help, including supporting the children, we felt we could relax a bit“.

“We told our children, eleven-year-old Martha and eight-year-old Gabriel that their mum [Amy] was ill, straight away, and it was so reassuring to have Dave there to talk to them too. He is a lovely man.”

“We knew a couple of people who had been cared for in the hospice in the past, and Amy was adamant that was where she wanted to spend her last days, but she also wanted to have Christmas 2021 at home, and she did.

“It was a difficult time but once she got to Prospect Hospice everything was so much easier. I could be there whenever I wanted to be – visiting time was totally unrestricted – and once Amy was on a syringe driver, so her pain and symptoms were under control, her whole demeanour changed and she became herself again.”

“The staff said ‘you know her best – if you notice any changes or anything different, tell us and we can deal with it’. So when I told them she seemed more forgetful, they took her off one of the drugs and she became much more like ‘Amy’ again, which helped us all. The communications were brilliant“.

“We have since found some lovely peace in Prospect Hospice’s garden – we’ve got a stone from the Bluebell Walk there, which helps us feel close to her.”

Investing in staff

We know our staff are vital to the running of the hospice. They work incredibly hard to raise funds, inspire volunteers and deliver care to our patients. We are also acutely aware that we need a whole team to be able to deliver our care. While our nurses may be the ‘face’ of the hospice, seen by many, without everyone, including our HR, finance, education and facilities teams and more, our outstanding care just wouldn’t be possible. We know how hard they’ve all worked to combat the challenges of the pandemic and the cost of living crisis, both personally and professionally. We are proud that they continue to deliver excellence across all their roles to ensure that our patients receive the care they need and deserve.

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Prospect Hospice Limited

Report of the trustees

For the year ended 31 March 2023

It was therefore decided that we needed to reward staff, not only for their hard work during the last few years, but also to reflect the growing economic challenges that they were facing away from the hospice. It was unanimously agreed by the board that the staff should receive a pay increase. This was implemented in October 2022 for all staff in line with NHS baseline.

A staff survey carried out at the end of the year saw a 71% response rate with 100% of responders agreeing that if a friend or relative needed treatment, they would be happy with the standard of care provided by the hospice.

Further highlights from the survey include:

Continually investing in our staff is key. We are committed to development and training ensuring that staff are not only skilled to do their current job but are developing skills for the future. We are also investing in leadership development at every level with the introduction of bespoke leadership development programmes designed to further embed our culture and ASPIRE values and further develop compassionate leadership.

Making the hospice a great place to work and thrive is a key strategic objective of the next hospice strategy and the results of this recent survey show we’re well on the way to achieving this.

Income generation

We entered this year with some trepidation as we didn’t know how our community would respond to the cost of living crisis, however, while being conscious of this we had to take measures to secure the future of the hospice.

As already highlighted, this year, we made the decision to increase the price of our lottery from £1 to £1.50 per play and, as a result, have doubled the income from this to around £750k a year.

We have also worked hard with local businesses to secure partnerships that demonstrate good examples of corporate social responsibility. Arval UK has worked with us to provide electric vans for our retail team as well as a pool car for staff. They are also working with us to support our 2023 summer appeal. Imagine Cruising continues to be a big supporter of the hospice, donating our raffle prizes so all ticket sales can be redirected to patient care; they continue to support many of our events. Our focus is to build on these corporate relationships to ensure we continue to work together and grow our support from other local organisations.

Our retail team also performed exceptionally well over the last year bringing in £2m income from the sale of donated goods both in our shops and through our e-commerce platforms. Almost £47k of this was raised at new pop-up shops around the local area, including in the Swindon Designer Outlet – another corporate partner we have a growing relationship with. Furthermore, we were all delighted when our new Marlborough shop was voted one of the top 10 second-hand stores in the UK in the latest Country Life review during the summer of 2022.

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Prospect Hospice Limited

Report of the trustees

For the year ended 31 March 2023

Volunteering

As volunteering opportunities returned after the pandemic, the hospice has received a steady stream of enquiries about joining our team. To generate these enquiries, we have re-established links with local community agencies who refer a diverse range of potential volunteers to us so we can match them to a role that suits their skills and preferences. Patient-facing roles remain very popular and we have delivered four cycles of our comprehensive inpatient volunteer training programme in the last year.

In the autumn we held our first volunteer conference for a number of years, with the support of Nationwide, who provided a venue and on-the-day support. Sixty volunteers attended and were keen to learn about the hospice’s new strategy and to explore how their contribution fitted into the bigger picture. Feedback was overwhelmingly positive, with delegates keen to share their learning with their volunteer colleagues. We were also able to hold our first face to face long service awards ceremony in three years where we honoured thirteen volunteers who, between them, had contributed a total of 270 years’ service to the charity.

Working with partner organisations, our volunteers are also supporting a regular Wroughton memory café, hosted by the hospice in conjunction with Swindon Borough Council. We are in the process of developing a series of volunteer-led bereavement help points with Carer Support Wiltshire.

Investing in new technology

Our move to SystmOne, which hosts our patient database, was completed this year and allows us to connect with other healthcare providers to give us a real time view of our patients’ care. Compared to our previous software, SystmOne has the advantage of providing direct links to many GP surgeries in our area which is supporting more effective patient care and support because we can share patients’ records. Staff have provided feedback to say this is having a positive effect on the way they manage a patient’s care as we have immediate access to GP and healthcare records.

Over the last year we have worked with our patients to further the use of virtual reality headsets to help manage their pain and reduce their reliance on opioids. Patient feedback has been incredibly positive with many saying that they become immersed in a new world and forget about the pain while using it. They’ve also said that, after using it, they feel their anxiety and pain levels are much lower and they’re able to use the techniques they’ve learnt to help even when they’re not using the headset. Our medical director presented the findings from this innovative work at the Hospice UK conference in November 2022.

With the support of Nationwide, we also introduced TV screens into our shops at the end of this year and invested in software that would share information to these from a central location within our communications team. This will allow us to screen timely information to our customers demonstrating ways they can support us, thanking them for supporting us and sharing stories of those they help to support.

We are aware that our IT infrastructure is dated and inadequate to support the future of the organisation. We’ve been working across the organisation to understand our needs and intend to refresh our IT systems in line with those needs to ensure we have sustainable systems for the foreseeable future.

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Prospect Hospice Limited

Report of the trustees

For the year ended 31 March 2023

Environmental impact

At the hospice we recognise that, while we must be a financially sustainable organisation, we also have a part to play in reducing our waste and being more environmentally sustainable.

This year we invested in environmentally friendly electric vans to replace our costly diesel ones that deliver goods to our shops. While much of the work to secure a new partnership for these was completed in the previous year, the new branded vehicles hit the road in the first quarter of this year.

The zero emissions vehicles have been donated to the hospice by Arval UK and will help ensure our shop teams are more efficient as they will no longer need to stop to refuel and can charge up at the distribution centre overnight for the next day. While being more environmentally friendly, the new vans will also help us cut down on the cost of fuel, redirecting that spend to patient care.

We also began a trial of recycling hospice waste to ensure we were sending as little as possible to landfill and we’ve installed new printers that enable printing only when staff scan their ID card which is reducing the amount of paper we use.

Alongside the environmental benefits, reducing our energy bills is a key target of the hospice and, to aid this, work has begun in our shops to reducing our carbon footprint by replacing old and expensive lighting with highly efficient LED lighting.

Financial review

a. GOING CONCERN

After making appropriate enquiries, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. For this reason they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the accounting policies.

b. PRINCIPAL RISK AND UNCERTAINTIES

The principal risks and uncertainties identified by the trustees are:

Post pandemic income recovery timeline

Whilst the performance of 22/23 exceeded expectations by £528k we recognised that we continue to face significant challenges. Current budgeting assumptions indicate a deficit of between £0.8 and £1.1m. This presents a significant challenge to our existing retail and fundraising efforts, but we have already initiated additional fundraising steams; catering services for instance. We have been successful in developing funding for our services through Hospice UK and expect to open more shops in the year ahead.

In line with our refreshed strategy, we will be reviewing opportunities for collaboration that provide efficiencies and improvements.

Nevertheless, we continue to closely monitor expenditure and investments to ensure we can continue to deliver our exceptional care services for those that need it.

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Prospect Hospice Limited

Report of the trustees

For the year ended 31 March 2023

Recruitment and retention of staff

Our success over the last year is down to the hard work of our staff. The current job market means that staff retention and recruitment is a significant factor in our continued success. We are focussed on working with existing staff to ensure a positive organisational culture; one where our staff feel valued and supported and where they enjoy coming to work. Despite the financial challenges we have faced in 22/23, the trustees agreed to a staff pay award in October 2022 to recognise the impact of the cost of living crisis on our staff. We continue to review salaries so to ensure we retain the commitment of our current staff and can recruit the staff we need for the sustainable future of the hospice.

Provision of services

Commitment of our staff and focus on efficiency means we have managed the challenging finances of the year without the need to reduce our services. We have set ambitious but achievable financial targets for the year ahead to enable our services to continue. The cost of care continues to be a challenge and we expect to see more people needing our support. We are mindful that our charitable objects are sacrosanct and we will focus on ensuring our core services are sustainable.

c. FINANCIAL OVERVIEW

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

The result stated on page 24 is a net income of £528k compared to a net cost of £138k in the previous year. This result presents the continued pressures on sustainable income streams despite the significant improvements in the returns from both retail and events fundraising. Higher than planned legacy income and the extended winter pressures statutory income have contributed to the in-year surplus. Nevertheless, the continued macro-economic uncertainty has had an impact on the charity’s investment portfolio, with an overall net unrealised loss in the year of £76k compared to a gain of £338k in the previous year.

Incoming resources

As set out on page 24, total incoming resources, including income from charitable activities, was £8,162k for the year (£7,228k in 21/22).

Resources expended

Prospect Hospice’s expenditure on a recurring basis (set aside) to provide care and support for patients, families and carers was £4,883k a reduction of £365k over the previous year. Expenditure in generating voluntary income was up on the previous year as a direct consequence of the increased 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 up to six 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 falls 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.

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Prospect Hospice Limited

Report of the trustees

For the year ended 31 March 2023

As outlined in the financial statements as at 31 March 2023 general reserves were £6,389k, an increase of £526k during the year. Of this total £1,145k relates to unrestricted fixed assets and £452k in investment land. The remaining balance of £4,792k represents approximately 6.6 months of future operating expenditure. The reserves policy also allows for the designation of funds at the trustees discretion. As at the 31 March 2023 designated funds were at £100k.

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 2023 the investment portfolio had a market value of £3.8m (2022: £3.9m). The investment strategy is set out below:

Additionally £452k is held as investment land as at 31 March 2023, this valuation is unchanged from March 2022.

Restricted funds are held in accordance with the accounting policy which is set out on page 28.

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.

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Prospect Hospice Limited

Report of the trustees

For the year ended 31 March 2023

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 profit of £15.1k 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. This year, the board has anticipated forthcoming gaps in its skills mix that would arise through the rotation and retirement of longstanding trustees and has already recruited trustees to fill these skills and knowledge gaps.

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

Despite the financial challenges presented to us, trustees are committed to ensuring that all staff are fairly rewarded in line with the market. Covid-19, and the subsequent cost of living crisis has severely impacted on the recruitment market and pay and we have seen significant increases in the national living wage. In April 2022 we implemented the new living wage rates only, increasing our lowest pay point by 4.2%. In October 2022 we implemented a cost of living increase of 3%, plus a consolidated £1,400 added to every pay point. This realigned the hospice with NHS agenda for change which is important for recruitment and retention of clinical staff. This brought our lowest pay point to 4% above the national living wage at the time. In addition, to support staff with the huge increase in winter fuel bills and cost of living, we implemented a £600 (pro-rata) non-consolidated payment for staff in December 2022.

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. Following a review of committees this year, it was decided that the Finance and Income Generation and the Audit and Risk committees would combine to form the Finance, Income Generation and Audit and Risk committee. The structure of these committees continues to be reviewed to ensure they are aligned to the governance needs of the organisation.

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Prospect Hospice Limited

Report of the trustees

For the year ended 31 March 2023

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, and regularly (quarterly) assess, 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 identified.

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 Finance, Income Generation, Audit and Risk committee (FIGAR) reviews all aspects of risk and reports to the board of trustees each quarter.

f. FUNDRAISING

The Charities Act (Protection and Social Investment) 2016 came into effect in November 2016. It states 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.

We engaged the services of an external consultant to review our income generation activity following the pandemic and to inform our future strategy.

To help secure further members of our lottery, we also contracted a professional canvassing agency which provided their employees for door to door and retail canvassing. We did not employ any telephone marketing agencies to canvas for new members.

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.

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Prospect Hospice Limited

Report of the trustees

For the year ended 31 March 2023

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 22/23 we received 10 complaints out of a total of 22,393 donations made by individuals and organisations that supported Prospect Hospice during the year.

Complaints are monitored by the Executive Team and the FIGAR 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 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 UK 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

Care and support

Over the coming year we will continue to invest in our staff and in enhancing the outstanding care we offer. Our health care assistants will take part in the Bluebell Aspire training programme which will enable them to increase their knowledge and skills in end of life care.

We’ve also teamed up with New College to develop learning packages in their state of the art simulated learning suite to deliver training to our staff and their nursing students, helping to further the knowledge of our own staff and helping to train our colleagues of the future.

Prospect Hospice will also be adopting the lantern model of nursing care and we’ll be working with the authors of this, from St Christopher’s Hospice and the Florence Nightingale Trust, to embed this across all aspects of clinical care. Through this model, there’s a real emphasis on establishing therapeutic relationships with patients and aspirations for care to constantly improve and evolve.

We also have ambitious plans to extend our services reflecting the changing needs of our patients which will include:

15

Prospect Hospice Limited

Report of the trustees

For the year ended 31 March 2023

Financial stability

The financial sustainability of the hospice remains a high priority for the coming year as we try to return to business as usual. We know this is going to be tough as we are faced with many challenges, including the current cost of living crisis, high interest rates and energy prices to name but a few. The road to recovery will extend beyond the 23/24 financial year, however we are confident that we have the right strategy in place to strengthen and secure the future of the hospice.

In light of the challenges we face, current budget assumptions indicate a likely deficit for the year ahead, and we understand the challenges that presents. By re-investing the surplus funds achieved in 22/23, due mainly to higher than budgeted legacy income, we will continue to be here to support our community. During 23/24 we will be focussed on growing our income streams to enable us to be here for the community for many years to come.

To support this, we plan to increase income through a number of routes. We are aiming for retail income to increase this year with the opening of further shops in the local area as well as increasing our online sales income. As a community charity, we are dependent on the continued support of the community we serve; we know that this year is going to be just as hard for them as the last few. The economic forecast is that people will continue to struggle so we therefore need to make our case for support clear. We continue to investigate new commercial income streams as a means of bringing sustainable income to the hospice.

Long term, we’ll be working on increasing our legacy work. Our community is not cash rich at the moment and may feel they can’t do anything to support us. Leaving a gift in their will is something they can commit to now but won’t cost them a penny today. We know this is a long term project and, while we won’t see the income from this over the next year, it is work that needs doing now to ensure financial security in the future.

We know that these are extremely challenging times for all but the actions we have taken to date, and will in the future, have all been taken to increase income and secure our financial future.

People

The beginning of 2023 saw the start of a level of industrial unrest that has not been seen for decades. Coupled with the continuing cost of living crisis, the changing market and the increasing challenge of recruiting and retaining staff across all roles, the board made a proactive decision to implement a 5% cost of living increase for all employees on 1 April 2023. At the same time, we implemented the 10.2% increase in the national living wage, with the board deciding that we would retain our 4% differential above the national living wage. This proactive decision was welcomed by staff and provides certainty of staff costs for the year 23/24.

Implementing Prospect Hospice's new strategy

Over the last few years we’ve worked with staff, sought feedback from our patients and those important to them, learnt from the pandemic and used the evidence that most people wish to die at home, close to family and friends, to devise our new strategy for the next five years.

This new strategy focuses on a vision of creating a community where death is no longer a taboo and everyone lives and dies well. The mission supporting this is that we will work with and through others using our skills and expertise so that people have a choice and support at the end of their life.

16

Prospect Hospice Limited

Report of the trustees

For the year ended 31 March 2023

Over the next five years, our objectives to achieve this are:

This has now been shared with staff and stakeholders and work has already begun on this.

CHAIR'S CLOSING STATEMENT

When we entered lockdown over three years ago, no one could have predicted that we’d be in the position we are now. We are still recovering financially and face new challenges from inflation and global fiscal uncertainty. Both our retail and fundraising income streams have exceeded expectations and continue to grow. These have been boosted by greater than expected legacy income so that we returned a surplus for the year.

Our continued and sustainable income has been the main concern of the trustees over the year. We have been focussed on ensuring the Prospect Hospice remains a going concern. Robust management of costs, supported by exceptional performance of both retail and fundraising, means that the trustees are assured that the Hospice is in a better financial position. The additional income from legacies means that the hospice reported a surplus of £528k at the end of the year. The trustees therefore have no hesitation supporting the assessment of going concern.

Despite this success, we have taken the opportunity to re-evaluate and look into new ways we might grow our business that doesn’t simply rely on our existing incomes. We’ve already received positive feedback from our ‘food to go’ catering service and we’ll be looking to further develop this and other commercial income streams to ensure the future of the hospice.

It’s been tough, and it’s not going to get any better soon, however, the one thing we can rely on is that our staff will continue to look at news ways of generating much needed income and that, when they can, our community will be there to support us in the best ways they can.

While it continues to be difficult, we have big ambitions for the future. Our clinical teams continue to learn and innovate the way they deliver end of life care and that will continue as we invest in further training to help individuals develop their skills and knowledge further.

We provide outstanding care to our patients which is not only reflected in our CQC assessment, but also through our patients and those important to them. We know we can’t do it alone though and working with others is going to be incredibly important for us in the future. Our new strategy highlights this and demonstrates how we will, over the coming years, work with and through our partners to ensure our patients have choice and support at the end of their lives.

While the last few years have been challenging, we’ve learnt just how resilient we can be in times of trouble, and we’ve remained able to care for those who need us. We’re able to bend and flex as the needs of our community changes and, while we know we may not be out of the tough times yet, we know we have the tools to be able to make it work and continue to provide outstanding care for our patients and their families.

17

Prospect Hospice Limited

Report of the trustees

For the year ended 31 March 2023

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:

The trustees 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 trustees 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 information to auditor

Each of the persons who are trustees at the time when this trustees’ report is approved has confirmed that:

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

18

Prospect Hospice Limited

Report of the trustees

For the year ended 31 March 2023

Auditors

The auditors, Godfrey Wilson, have indicated their willingness to continue 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 the board of trustees on 22 June 2023 and signed on their behalf by:

Dr K Howard

Kevin Howard - Chair

19

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 2023 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.

20

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.

21

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:

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.

22

Independent auditors' report

To the members of

Prospect Hospice Limited

Use of our report

This report is made solely to the charityʼs 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 charityʼs members those matters we are required to state to them in an auditorʼs 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 charityʼs members as a body, for our audit work, for this report, or for the opinions we have formed.

Alison Godfrey

Date: 26 June 2023

Alison Godfrey FCA (Senior Statutory Auditor)

For and on behalf of:

GODFREY WILSON LIMITED

Chartered accountants and statutory auditors 5th Floor Mariner House 62 Prince Street Bristol BS1 4QD

23

Prospect Hospice Limited

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

For the year ended 31 March 2023

Note
Income from:
Donations and legacies
3
Charitable activities
4
Other trading activities
5
Investments
6
Other income
Total income
Expenditure on:
Raising funds:
Voluntary income
Fundraising trading
Charitable activities
Total expenditure
8
Net gains / (losses) on investments
Net movement in funds
9
Reconciliation of funds:
Total funds brought forward
Total funds carried forward
Net income / (expenditure) before
investment gains		 Restricted
£000
230
2,502
-
-
-
2,732
-
-
2,830
2,830
(98)
-
(98)
1,286
1,188		 Unrestricted
£000
2,482
47
2,869
16
16
5,430
576
2,099
2,053
4,728
702
(76)
626
5,863
6,489		 2023
Total
£000
2,712
2,549
2,869
16
16
8,162
576
2,099
4,883
7,558
604
(76)
528
7,149
7,677		 2022
Total
£000
2,258
2,926
2,043
1
-
7,228
486
1,970
5,248
7,704
(476)
338
(138)
7,287
7,149

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 25 to the accounts.

24

Prospect Hospice Limited

Consolidated balance sheets

As at 31 March 2023

Note
Fixed assets
Tangible assets
12
Investment property
13
Investments
14, 15, 16
Current assets
Stocks
17
Debtors
18
Cash at bank and in hand
Liabilities
19
Net current assets
20
Net assets
24
Funds
25
Restricted funds
Unrestricted funds:
Designated funds
General funds
Total charity funds
Creditors: amounts falling due
within 1 year
Creditors: amounts falling due
after 1 year		 The group
2023
£000
2,296
452
3,827
6,575
55
457
2,564
3,076
974
2,102
1,000
7,677
1,188
100
6,389
7,677		 The group The charity
2022
2023
£000
£000
2,389
2,296
452
452
3,903
3,827
6,744
6,575
44
51
1,500
473
1,476
2,550
3,020
3,074
1,340
972
1,680
2,102
1,275
1,000
7,149
7,677
1,286
1,188
-
100
5,863
6,389
7,149
7,677		 The charity
2022
£000
2,389
452
3,903
6,744
40
1,513
1,462
3,015
1,335
1,680
1,275
7,149
1,286
-
5,863
7,149

Approved by the trustees on 22 June 2023 and signed on their behalf by

Dr K Howard

Kevin Howard - Chair

Sheila Bryant - Trustee

25

Prospect Hospice Limited

Consolidated statement of cash flows

For the year ended 31 March 2023

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
Loss / (profit) on the sale of fixed assets
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 property, plant and equipment
Net cash provided by / (used in) investing activities
Cash flows from financing activities:
Repayment of borrowing
Cash inflows from new borrowing
Net cash provided in / (used in) financing 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		 2023
£000
528
115
76
(16)
(17)
(11)
1,043
(441)
1,277
16
(29)
24
11
(200)
-
(200)
-
1,088
1,476
2,564		 2022
£000
(138)
168
(338)
(1)
131
10
(639)
112
(695)
1
-
-
1
-
1,500
1,500
806
670
1,476

Analysis of net changes in debt are given in note 22.

26

Prospect Hospice Limited

Notes to the financial statements

For the year ended 31 March 2023

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 financial risks of continuing operations in a post-COVID world, and are satisfied that the strategies for income growth in place for 23/24 - 25/26, together with the built back reserves position at 31 March 2023 and the repayment of long term loan finance from July 2023 to limit exposure to interest rate risk, are sufficient to mitigate the operating risks. 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.

27

Prospect Hospice Limited

Notes to the financial statements

For the year ended 31 March 2023

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 funds 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.

28

Prospect Hospice Limited

Notes to the financial statements

For the year ended 31 March 2023

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 £1,000.

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).

29

Prospect Hospice Limited

Notes to the financial statements

For the year ended 31 March 2023

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

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

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) Contingent liabilities

A contingent liability is recognised when either a transfer of economic benefit to settle the obligation is possible but not probable; or the amount of the obligation cannot be estimated reliably.

30

Prospect Hospice Limited

Notes to the financial statements

For the year ended 31 March 2023

1. Accounting policies (continued)

t) 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 - accrued legacy income, which is included within debtors - see note 1(d) above - the Akers land investment property valuation - see note 1(k) above, and the contingent liability regarding pension obligations - see note 1(s).

2. Prior period comparatives

Income from:
Donations and legacies
Charitable activities
Other trading activities
Investments
Total income
Expenditure on:
Raising funds:
Voluntary income
Fundraising trading
Charitable activities
Total expenditure
Net expenditure before investment gains
Net gains on investments
Net movement in funds		 Restricted
£000
£000
93
2,165
2,892
34
-
2,043
-
1
2,985
4,243
-
486
-
1,970
3,204
2,044
3,204
4,500
(219)
(257)
-
338
(219)
81
Unrestricted		 2022
Total
£000
2,258
2,926
2,043
1
7,228
486
1,970
5,248
7,704
(476)
338
(138)

31

Prospect Hospice Limited

Notes to the financial statements

For the year ended 31 March 2023

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
Income from charitable activities
COVID funding
Swindon CCG
Wiltshire CCG
Great Western Hospitals NHS Foundations Trust
Health England (GPST1 doctors funding)
BSW Alliance
Health Education England
Other
Total charitable activities		 Restricted
£000
£000
-
492
32
119
-
383
-
45
-
1,136
198
52
-
255
230
2,482
Restricted
£000
£000
-
470
35
12
-
394
-
46
-
903
58
78
-
262
93
2,165
Restricted
£000
£000
66
9
1,787
-
311
-
5
-
177
-
118
-
27
-
11
38
2,502
47
Unrestricted
Unrestricted
Unrestricted		 2023
Total
£000
492
151
383
45
1,136
250
255
2,712
2022
Total
£000
470
47
394
46
903
136
262
2,258
2023
Total
£000
75
1,787
311
5
177
118
27
49
2,549

4. Income from charitable activities

32

Prospect Hospice Limited

Notes to the financial statements

For the year ended 31 March 2023

4.
Income from charitable activities (continued)
Prior period comparative
COVID funding
Swindon CCG
Wiltshire CCG
Great Western Hospitals NHS Foundations Trust
Health England (GPST1 doctors funding)
BSW Alliance
Education and training income
Other
Total charitable activities
5.
Income from other trading activities
Shops and retail
Lottery income
Catering income
Ball tickets and raffle
Total other trading activities		 Restricted
£000
£000
210
27
1,876
-
324
-
206
-
155
-
98
-
-
1
23
6
2,892
34
2023
£000
2,043
749
34
43
2,869
Unrestricted		 2022
Total
£000
237
1,876
324
206
155
98
1
29
2,926
2022
£000
1,541
488
14
-
2,043

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

6.
Investment income
Income from cash held at UK banks
Income from investment portfolio
Total investment income		 2023
£000
15
1
16		 2022
£000
1
-
1

All investment income in the current and prior year was unrestricted.

33

Prospect Hospice Limited

Notes to the financial statements

For the year ended 31 March 2023

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
Charitable activities
In-patient unit
Community care
Influencing and education
Governance costs
Total expenditure		 Direct
costs
£000
444
43
210
1,343
1,596
1,507
931
628
102
3,168
5,208		 Support
costs
£000
132
-
2
501
503
744
527
444
-
1,715
2,350		 2023
Total
£000
576
43
212
1,844
2,099
2,251
1,458
1,072
102
4,883
7,558

34

Prospect Hospice Limited

Notes to the financial statements

For the year ended 31 March 2023

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
Charitable activities
In-patient unit
Community care
Influencing and education
Governance costs
Total expenditure		 £000
331
18
214
1,200
1,432
1,644
947
674
116
3,381
5,144
Direct
costs		 £000
155
-
2
536
538
855
558
454
-
1,867
2,560
Support
costs		 £000
486
2022
Total
18
216
1,736
1,970
2,499
1,505
1,128
116
5,248
7,704

35

Prospect Hospice Limited

Notes to the financial statements

For the year ended 31 March 2023

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)		 2023
£000
115
274
Nil
Nil
12		 2022
£000
168
248
Nil
Nil
11

10. Staff costs and numbers

Staff costs were as follows:

Salaries and wages
Social security costs
Pension costs		 2023
£000
4,414
428
321
5,163		 2022
£000
4,843
395
316
5,554

There were no termination or redundancy payments made during the year (2022: £16k).

Average number of employees
Full time equivalents:
Medical
In-patient nurses
Community care
Influencing and education
Catering and housekeeping
Income generation
Facilities and reception
Admin and support
Management		 2023
No.
190
2023
No.
5
23
32
1
4
42
2
17
7
133		 2022
No.
196
2022
No.
5
24
33
-
3
40
2
22
8
137

36

Prospect Hospice Limited

Notes to the financial statements

For the year ended 31 March 2023

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 £195k (2022: £310k).

At 31 March 2023 there were 33 members of the NHS pension scheme (2022: 36), and 117 members of the Royal London Group Personal pension plan (2022: 124).

The number of higher paid employees was:
£70,001 - £80,000
£80,001 - £90,000
£100,001 - £110,000
£110,001 - £120,000
£150,001 - £160,000
£220,001 - £230,000		 2023
No.
2
2
1
-
1
-
6		 2022
No.
2
2
-
1
-
1
6

The total emoluments inclusive of all employer related costs and termination, redundancy and other restructuring fixed term contractual payments paid to key management personnel (6.0 FTE) for the year was £670k (2022: 6.0 FTE £700k), of which, pension contributions amounted to £30k (2022: £30k).

11. Taxation

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

37

Prospect Hospice Limited

Notes to the financial statements

For the year ended 31 March 2023

12. Tangible fixed assets: group and charity

Cost
At 1 April 2022
Additions
Disposals
At 31 March 2023
Depreciation
At 1 April 2022
Charge for the year
Disposals
At 31 March 2023
Net book value
At 31 March 2023
At 31 March 2022		 Hospice
land and
buildings
£000
£000
4,073
217
-
-
-
-
4,073
217
1,755
193
93
4
-
-
1,848
197
2,225
20
2,318
24
Leasehold
improvements		 Equipment
for care
and
support
£000
428
29
-
457
423
4
-
427
30
5		 £000
978
-
(66)
912
936
14
(59)
891
21
42
Other
equipment
and vehicles		 Total
£000
5,696
29
(66)
5,659
3,307
115
(59)
3,363
2,296
2,389

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 2022
Unrealised gain on revaluation
Market value at 31 March 2023
Historic cost		 2023
£000
452
-
452
153		 2022
£000
452
-
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 desktop valuation of the land was carried out on 31 March 2023 by Chesters Commercial. This concluded there was no material change in valuation on the proportion of the developable land. The remaining proportion of land is held at arable value. The trustees consider this a fair estimate of land value as at 31 March 2023.

38

Prospect Hospice Limited

Notes to the financial statements

For the year ended 31 March 2023

14. Investments: group and charity

Investments: group and charity
Market value at 1 April 2022
Realised and unrealised gains / (losses)
Cash movement
Market value at 31 March 2023
Historic cost
Group investments comprise:
UK
Overseas
£000
£000
Listed investments
3,827
-		 2023
£000
3,903
(76)
-
3,827
2,464
2023 Total
£000
3,827		 2022
£000
3,565
338
-
3,903
2,464
2022 Total
£000
3,903

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

39

Prospect Hospice Limited

Notes to the financial statements

For the year ended 31 March 2023

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 losses brought forward
Total comprehensive income for the year
Gift aid distribution to parent charity
Total retained profit / (losses) carried forward
The aggregate of the assets, liabilities and funds was:
Assets
Liabilities
Funds		 2023
£000
79
(41)
38
(23)
15
-
15
-
15
(15)
-
2023
£000
27
(27)
-		 2022
£000
49
(16)
33
(18)
15
-
15
(1)
15
(14)
-
2022
£000
22
(22)
-

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		 2023
£000
8,119
529		 2022
£000
7,112
235

40

Prospect Hospice Limited

Notes to the financial statements

For the year ended 31 March 2023

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 21)
Loans		 2023
2022
£000
£000
55
44
2023
2022
£000
£000
142
923
-
-
65
62
250
515
457
1,500
2023
2022
£000
£000
100
119
233
375
111
105
44
20
186
496
300
225
974
1,340
The group
The group
The group		 2023
2022
£000
£000
51
40
2023
2022
£000
£000
142
923
25
17
56
58
250
515
473
1,513
2023
2022
£000
£000
100
119
231
370
111
105
44
20
186
496
300
225
972
1,335
The charity
The charity
The charity		 2023
2022
£000
£000
51
40
2023
2022
£000
£000
142
923
25
17
56
58
250
515
473
1,513
2023
2022
£000
£000
100
119
231
370
111
105
44
20
186
496
300
225
972
1,335
The charity
The charity
The charity
1,335

20. Creditors: amounts due after 1 year

Loans 2023
2022
£000
£000
1,000
1,275
The group		 2023
2022
£000
£000
1,000
1,275
The charity

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.

41

Prospect Hospice Limited

Notes to the financial statements

For the year ended 31 March 2023

21. Deferred income

At 1 April 2022
Deferred during the year
Released during the year
At 31 March 2023		 2023
2022
£000
£000
496
578
186
496
(496)
(578)
186
496
The group		 2023
2022
£000
£000
496
578
186
496
(496)
(578)
186
496
The charity		 2023
2022
£000
£000
496
578
186
496
(496)
(578)
186
496
The charity
496

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.

22. Analysis of changes in net debt

Analysis of changes in net debt
At 1 April
2022
£000
Cash
1,476
1,476
Loans falling due within 1 year
(225)
Loans falling due after 1 year
(1,275)
Total
(24)
Financial instruments measured at fair value
2023
2022
£000
£000
Financial assets measured at fair value
4,279
4,355
The group		 £000
£000
1,088
2,564
1,088
2,564
(75)
(300)
275
(1,000)
1,288
1,264
2023
2022
£000
£000
4,279
4,355
The charity
Cash flows
At 31 March
2023		 £000
2,564
At 31 March
2023
2,564
(300)
(1,000)
1,264

23. Financial instruments measured at fair value

Financial assets held at fair value comprise listed investments and investment property.

42

Prospect Hospice Limited

Notes to the financial statements

For the year ended 31 March 2023

24. Analysis of group net assets between funds

Tangible fixed assets
Investment property
Fixed asset investments
Current assets
Current liabilities
Non current liabilities
Net assets at 31 March 2023
Prior year comparative
Tangible fixed assets
Investment property
Fixed asset investments
Current assets
Current liabilities
Non current liabilities
Net assets at 31 March 2022		 £000
1,151
-
-
37
-
-
1,188
Restricted
funds		 Designated
funds
£000
-
-
-
100
-
-
100
£000
1,206
-
-
80
-
-
1,286
Restricted
funds		 General
funds
£000
1,145
452
3,827
2,939
(974)
(1,000)
6,389
General
funds
£000
1,183
452
3,903
2,940
(1,340)
(1,275)
5,863		 Total
funds
£000
2,296
452
3,827
3,076
(974)
(1,000)
7,677
Total funds
£000
2,389
452
3,903
3,020
(1,340)
(1,275)
7,149

43

Prospect Hospice Limited

Notes to the financial statements

For the year ended 31 March 2023

25. Movements in funds

Restricted funds
Building funds
Costs of equipment
Running costs
Designated funds
General funds
Total funds
Unrestricted funds
Total unrestricted
funds
Total restricted
funds		 At 1 April
2022
£000
1,200
6
80
1,286
-
5,863
5,863
7,149		 Income
£000
£000
-
(54)
-
(1)
2,732
(2,775)
2,732
(2,830)
-
-
5,430
(4,728)
5,430
(4,728)
8,162
(7,558)
Expenditure		 Gains /
(losses)
£000
-
-
-
-
-
(76)
(76)
(76)		 Transfers
between
funds
£000
-
-
-
-
100
(100)
-
-		 £000
1,146
5
37
At 31
March
2023
1,188
100
6,389
6,489
7,677

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. 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.

Unrestricted funds

Designated funds

This relates to a potential liability arising from additional obligations around pension contributions. Indications are that the estimated value of these potential payments are in the region of £100k. The criteria for inclusion as a liability or provision have not yet been met, consequently the trustees have designated some funds to cover the potential liability should it crystalise.

General funds

It is the policy of Prospect Hospice to aim to keep up to 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. 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. The year end figure, excluding the balance held in fixed assets and investment land, represents approximately 6.6 months’ worth of future operating expenditure.

44

Prospect Hospice Limited

Notes to the financial statements

For the year ended 31 March 2023

25. Movements in funds (continued) Prior year comparative


Prior year comparative
Restricted funds
Building funds
Costs of equipment
Running costs
Total restricted funds
General funds
Total unrestricted funds
Total funds
Unrestricted funds		 £000
1,358
58
89
1,505
5,782
5,782
7,287
At 1 April
2021		 Expenditure
£000
£000
-
(158)
-
(52)
2,985
(2,994)
2,985
(3,204)
4,243
(4,500)
4,243
(4,500)
7,228
(7,704)
Income		 £000
-
-
-
-
338
338
338
Gains /
(losses)		 £000
1,200
6
80
At 31
March
2022
1,286
5,863
5,863
7,149

26. 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 £154k (2022: £170k).

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 £155k (2022: £137k).

45

Prospect Hospice Limited

Notes to the financial statements

For the year ended 31 March 2023

27. Operating lease commitments

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

payments as follows:
Amount falling due:
Within 1 year
Within 1 - 5 years
Over 5 years		 2023
2022
£000
£000
224
251
223
635
6
128
453
1,014
The group		 2023
2022
£000
£000
224
251
223
635
6
128
453
1,014
The charity
1,014

28. Contingent assets

There are some legacies which have been notified to the charity at 31 March 2023 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 £495k (2022: £420k).

29. Contingent liabilities

There is a potential liability arising from additional obligations around pension contributions, for which the amount payable and the timing of the cash outflow cannot be ascertained. Indications are that the estimated value of these potential payments are in the region of £100k (2022: £nil). The charity does not expect to receive reimbursement if the cost crystalises.

30. Related party transactions

No members of the board of trustees received any remuneration for their services or received any reimbursement of expenses (2022: nil).

Beyond the transactions with its subsidiary, there was one further related party transaction during the year. Trustee Joseph Lewis is a partner at law firm Gardner Leader LLP. Gardner Leader LLP provided legal services related to the commercialising of catering for £825 + VAT. There were no such transactions in the prior year.

46