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2020-11-30-accounts

Registered number: 01635916 Charity number: 284881

PENNY BROHN CANCER CARE

TRUSTEES' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 NOVEMBER 2020

PENNY BROHN CANCER CARE

CONTENTS

Page
Reference and Administrative Details of the Charity, its Trustees and Advisers 1
Trustees' Report 2
Trustees' Responsibilities Statement 15
Independent Auditors' Report on the Financial Statements 16 - 18
Consolidated Statement of Financial Activities 19
Consolidated Balance Sheet 20
Charity Balance Sheet 21
Consolidated Statement of Cash Flows 22
Notes to the Financial Statements 23 - 42

PENNY BROHN CANCER CARE

REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 30 NOVEMBER 2020

Trustees Rev Dr Victor Barley2
Jessica Brohn (appointed 13 November 2020)
Rebecca Granger3
Jacqueline Graves2
Katherine Groombridge3
Ken Guy1
Alex Hamilton-Baily2
Stephen Rosser1,3
Charles Russell-Smith (appointed 13 November 2020)3
Mohammed Saddiq1
Charlotte White1
Caroline Sapsed (resigned 21 May 2020)2
1
Finance & Audit Committee
2
Remuneration and Appointments Committee
3
Shop@PennyBrohn Ltd
Company registered
number
01635916
Charity registered
number
284881
Registered office
Chapel Pill Lane
Pill
Bristol
BS20 0HH
Company secretary
Gail Boulton
Chief executive officer
Julie Worrall
Independent auditors
Bishop Fleming LLP
Chartered Accountants
Statutory Auditors
10 Temple Back
Bristol
BS1 6FL

Page 1

PENNY BROHN CANCER CARE

TRUSTEES REPORT FOR THE YEAR ENDED 30 NOVEMBER 2020

Cancer: a life changing event

Being diagnosed with cancer affects so much more than just our body. It affects how we think and feel with potentially devastating consequences for our quality of life.

Following a diagnosis, research shows that one in three people experience a mental health problem such as depression or anxiety before, during or after treatment and many survivors face post-traumatic stress. In addition, 25% of people will be left with poor health or with a physical disability due to their cancer and its treatment.[1]

The impact of cancer is related to four main factors[2] :

Coping with this impact means an intense period of adjustment to the challenges faced. It also means coming to terms with a perceived loss of control and living with uncertainty about the future.

Our purpose: To bring improved health and enrichment to every life affected by cancer

Our vision: To reach out to as many people affected by cancer as possible with our Bristol Whole Life Approach

The Bristol Whole Life Approach provides a powerful combination of physical, emotional, psychological and spiritual support that is designed to help people to play an active role in their health and wellbeing, bringing them a renewed sense of hope and control.

Thank you for making cancer a less scary thing and offering the hope and opportunity for individuals to empower themselves and live better. Maddi

1 Supporting the emotional and mental health needs of people with cancer, 2018, Mental Health Foundation, Scotland accessed 21 March 2021

2 Psychological Support: Sharing Good Practice, Macmillan, 2015 www.macmillan.org.uk/documents/aboutus/health_professionals/macvoice/psychological-support-sharing-good-practice.pdf, accessed 16 March 2021

Page 2

PENNY BROHN CANCER CARE

TRUSTEES REPORT (CONTINUED) FOR THE YEAR ENDED 30 NOVEMBER 2020

&+$,5¶6�67$7(0(17

Welcome to our 2020 Annual Report and Accounts for the period 1 December 2019 and 30 November 2020

During this financial year, the Covid-19 pandemic challenged every aspect of our daily life, including the safe delivery of cancer support. In March 2020, we were forced to suspend all face-to-face support and close our National Centre in Bristol. At the same time, the NHS focused its resources on the critical care of people with coronavirus and the huge and additional challenges that people living with cancer would face due to the pandemic emerged. I am extremely proud of the effective and compassionate way our people responded to the emergency. This annual report and accounts tell the story of the past twelve months - the highs and lows - of a year like no other, as we continue in our commitment to bring health and enrichment to every life affected by cancer.

The impact of Covid-19 on people with cancer during this year was profound. Being there for them and also ensuring the survival of our organisation were the foundation on which every decision we made was based. The Charity moved quickly to protect employees and clients, whilst also moving essential services online throughout those early weeks of the pandemic. Within three weeks of the first lockdown, we had adapted our face-to-face cancer support to deliver our first virtual session. The virtual programme was shaped in response to what people were telling us they needed, prioritising online sessions to support resilience, self-care and to promote connection and community.

Our weekly programme has grown over the past twelve months to provide trusted information, practical support - nutrition and physical exercise - and a safe space for people with cancer to come together for emotional and peer support. From the first session with nine participants to sessions of over 150, we are now reaching out beyond our geographical boundaries to reach people where they are - at home and abroad.

As demand for support grew, our ability to raise funds from events and community, hospitality and trading came to almost a full stop. At the time our clients needed us most, our very survival was in question and sustainability became key. To protect front line services and reduce costs, the Charity started a programme of restructure in the summer of 2020 which enabled us to reduce the cost base in preparation for recovery. Sadly, the casualty of a restructure is that we lost wonderful people as several roles were made redundant. At present the charity is operating at a reduced capacity having removed 32% of the workforce

These measures, together with additional funding from Covid-19 emergency response grants, meant we were able to end the year with a small surplus of £130k. This was a huge achievement and would not have been possible without our dedicated staff, our loyal clients, supporters and partners and funding from several trusts and foundations including The Pilkington Trust. We are conscious that it will take time to build back; challenges around funding will continue into 2021 and this surplus will help mitigate risk over the coming year.

In October, we welcomed Julie Worrall as CEO. Julie is a strong strategic leader with expertise in driving change in the not-for-SURILW�VHFWRU��-XOLH¶V�RZQ�SHUVRQDO�H[SHULHQFH�ZLWK�FDQFHU�JLYH�KHU�D�XQLTXH�SHUVSHFWLYe and a passion to take the charity forward.

For all of us, 2020 will forever be defined by the Covid-19 and its impact will continue. But for Penny Brohn UK, our response to the pandemic may come to define us as an organisation. We must now look forward. It is time to pioneer again, to refine our purpose and do more with less. To listen to people with cancer and focus our efforts on what will have the greatest impact for them. To build back better, stronger and sustainably so that we are here for people with cancer today, tomorrow and long into the future.

Date:

Stephen Rosser Chair

Page 3

PENNY BROHN CANCER CARE

TRUSTEES REPORT (CONTINUED) FOR THE YEAR ENDED 30 NOVEMBER 2020

OUR ACHIEVEMENTS AND PERFORMANCE

The highlights

I absolutely know that PB has made these past few months not only feel do-able, but it's given me so many opportunities for learning and loving! I don't have a feeling of time wasted any more, it's all just time, no good, no bad, and being here is enough.

And I think it's satisfying a really deep need in us all (as we know from PB's whole life approach) for a true sense of connection and community... I really don't think I'd have got to this point of acceptance or be able to

feel that earthy, solid sense of ultimate safety without PB, and in particular these regular practices with a familiar crew. So, I feel like expressing gratitude for this cancer, it's brought so many gifts. Never thought I'd VD\�WKDW����\HDUV�DJR���¶� $�UHOD[DWLRQ�URRP�UHJXODU

Progress against strategic aims

To pursue our purpose, to bring improved health and enrichment to every life affected by cancer, we identified the following strategic aims for 2020:

  1. Reaching more people with cancer

  2. Championing the needs of our clients

  3. Education through our Academy

Although our strategic aims remained unchanged, the impact of the pandemic resulted in a reprioritisation of many of the initiatives that sat under them, both in recognition of the immediate needs of people with cancer and our own financial constraints.

Page 4

PENNY BROHN CANCER CARE

TRUSTEES REPORT (CONTINUED) FOR THE YEAR ENDED 30 NOVEMBER 2020

Most significantly, our priority focus became to maintain our ability to reach people with cancer by pivoting our face-to-face service delivery to a completely virtual model and increasing our digital marketing efforts. Consequently, we had to suspend certain planned activities including:

The following section reports on what we achieved between December 2019 and the end of November 2020 against our three strategic aims.

Strategic Aim 1: To reach more people with cancer

What we achieved in 2020

1. Move to virtual service delivery

The temporary closure of the National Centre in March 2020 accelerated our digital response. We realised that to reach people we had to innovate quickly. An online programme of support was assembled using various digital platforms: zoom, website, YouTube, and social media and we optimised telephone and email for one-to-one support.

This response was, in the first instance, to mitigate the restriction to face to face support imposed by the pandemic. However, it soon became clear that access to virtual support improved and increased access for people shielding and unwell.

Strategic Aim 1: To reach more people with cancer

The virtual programme soon focused on reassurance, emotional and practical support and provision reliable information. Its development was informed by talking to people with cancer to establish a better understanding of their top concerns and challenges, which included exacerbated feelings of loneliness and isolation. Over the twelve months we have collaborated with sector experts in complementary, integrative and nutritional medicine to deliver specialist sessions and worked in partnership with synergistic organisations.

The Penny Brohn UK weekly virtual programme has grown to include:

2. Increased access to digital health tools and online resources

Having recognised the value of digital health tools and online resources at a time when people are shielding and self-isolating at home, we launched a new resources section of our website in March 2020 combining all downloadable content, e-books, pdf and multi-media to create a one-stop-shop of self-serve content that could be accessed at any time.

We additionally partnered with Headspace and Big Health to offer free subscriptions to digital wellbeing tools Headspace, Sleepio (an evidence-based sleep support programme) and Daylight (an anxiety support app) to any Penny Brohn UK clients.

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PENNY BROHN CANCER CARE

TRUSTEES REPORT (CONTINUED) FOR THE YEAR ENDED 30 NOVEMBER 2020

3. Increased presence in and understanding of our community We maintain our belief that being embedded in the heart of the community and easily accessible will enable Penny Brohn UK to become a trusted, recognisable face for those needing support. Despite the challenges of the year, we were able to progress two important initiatives to support our development in this area.

Penny Brohn UK opened its FIRST high street hub in Bristol, a ten minute walk from the Bristol Oncology and Haematology Centre at the Bristol Royal Infirmary. More than a charity shop, the financially self-sufficient Hub fuses the traditional charity shop offering with access to cancer therapies in purpose-built therapy rooms. We will be evaluating this innovative venture over the coming year.

Additionally, in 2019 we commenced a pilot project in Bristol to understand the cultural barriers that prevent discussion and openness about cancer and accessing support. With great regret, the impact of the pandemic in 2020 resulted in a suspension of the project. However, we continue to recognise our responsibility to do more to create change and deliver better outcomes for all people living with cancer. As part of developing our wider strategy for equality, diversity, inclusion and belonging we will be reviewing how we progress the objectives of this pilot project in 2021.

4. Enhanced partnership working

3HQQ\�%URKQ�8.¶V�SDUWQHUVKLS�ZLWK�*HQHVLV&DUH�FRQWLQXHG�WR�JR�IURP�VWUHQJWK�WR�VWUHQJWK��ZLWK�Whe access to 3HQQ\�%URKQ�8.¶V�VXpport, both virtual and face to face, now available in 14 GenesisCare Centres. Over 5,500 GenesisCare patients benefited from this invaluable support in 2020 with 90% of patients expressing that the Penny Brohn UK service had made a positive difference to the way they viewed their health and wellbeing. This is a remarkable figure, especially in the light of the difficulties of the pandemic.

± Flexible nature of the wellbeing support incredibly helpful looking at all other aspects of a person. Having someone to talk with when attending for treatment has been very helpful. Benefited from relaxation sessions and particularly after exercise clinic sessions. Really appreciate the counselling referral too. Overall an excellent service.

GenesisCare Patient ± Elstree

Strategic Aim 2: To champion the needs of our clients

What we achieved in 2020

We aim to support our clients to voice their holistic and living well needs and take control wherever possible of their own cancer experience.

In 2020 we worked with Channel 4 on two news packages raising awareness of the needs of people with cancer. The first in January focused on the hidden financial costs of a cancer diagnosis and the second focused on the worries about future treatment as the NHS focused on Covid-19. The news platform gave us WKH�RSSRUWXQLW\�WR�LQYLWH�SHRSOH�ZLWK�FDQFHU�WR�³WHOO�WKHLU�VWRU\�DQG�WKH�FKDOOHQJHV�WKH\�IDFH�OLYLQJ�ZLWK�D�FDQFer diagnosis.

Helped me to talk about how worried I am and how I find it difficult to take time out for myself with a young child. Glad to be referred for counselling and that an appointment has been made just before I complete radiotherapy which I hope wLOO�KHOS�PH�WR�PDQDJH�KRZ�,¶P�IHHOLQJ�DERXW�P\�WUHDWPHQW�HQGLQJ�

In September, Dr Catherine Zollman, Penny Brohn UK Medical Lead, together with many of the Penny Brohn UK community, took part in the first Your Life and Cancer Conference. The online event brought together over 40 international cancer care experts in lifestyle, complementary and holistic approaches, and people living with cancer and was designed to shine a light on the benefits of integrating holistic and lifestyle practices alongside conventional medicine such as chemotherapy, radiotherapy and surgery.

Page 6

PENNY BROHN CANCER CARE

TRUSTEES REPORT (CONTINUED) FOR THE YEAR ENDED 30 NOVEMBER 2020

Dr Catherine Zollman, sits on the committee of the British Society of Integrative Oncology (BSIO)[4] . In addition, the SIO Global Development Task Force has appointed Dr Zollman, as National Ambassador to the United Kingdom. Catherine is the second ambassador to be named in the growing SIO International Ambassador Program, which will unite and support key integrative oncology colleagues in collaboration with the SIO regional Ambassadors.

BSIO is the leading professional organisation for integrative oncology in the UK. Their goal is to promote the integration of conventional, nutritional, lifestyle and complementary medicine to improve the lives of people affected by cancer. This synergy of purpose provides a platform from which to amplify the voice of people with cancer and to champion their holistic needs by proving the efficacy and impact of an integrated approach to cancer care. And show how people can see clinically significant improvement in their quality of life and cancer experience by focusing on ways to support the mind, spirit and emotions as well as the body by telling their stories.

Strategic Aim 3: To educate healthcare professionals in the benefits of evidence informed complementary, lifestyle and holistic approaches to cancer care and support.

What we achieved in 2020

We continue to deepen our relationship with the University of Bristol Medical School by offering placements to our doctors of the future with the aim of educating them about an integrated approach, and its clinical benefits, not only for cancer but wider healthcare challenges.

It was the perfect place and person to help me be me. I felt safe, it felt confidentially safe, and I feel this kind of support should be on prescription. Everyone should be prescribed PB support, it is amazing.

For the first time in 2020, we hosted a three week Student Choice Placement for 2nd year students. It was taught and mentored by the Penny Brohn UK doctor team who focussed learning on how to build resilience, both for themselves and their future patients. This is now in addition to the ongoing monthly long third and fourth year student Selected Component in Integrative Medicine that the charity has successfully run for the past three years.

2020 in numbers

4 Integrative oncology is a patient-centred, evidence-informed field of cancer care that utilises nutritional, lifestyle and complementary interventions alongside conventional cancer treatments to support better quality of life, improve resilience, minimise the side effects of treatment and improve outcomes. https://www.bsio.org.uk/the-role-of-bsio accessed 26 March 2021

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PENNY BROHN CANCER CARE

TRUSTEES REPORT (CONTINUED) FOR THE YEAR ENDED 30 NOVEMBER 2020

2020 in client voices

My cancer recovery journey has been greatly enriched since I found your charity and its online programme. ² Resilience, nutrition, stamina, relaxation all amazing offerings. As I live in Plymouth, your online presence has been invaluable to me at this time.

Exceptional. I was noW�H[SHFWLQJ�WKLV�NLQG�RI�VXSSRUW��,�GLGQ¶t realise just how much I needed it, until I began talking. I was made to feel really safe and I just opened up.

Having a long-term cancer that you are stuck with for the rest of your life has a big impact on your mental health and you can feel very isolated if you do not have a strong support network. When I got in touch with 3HQQ\�%URKQ�8.��,�UHDOO\�OLNHG�WKH�FKDULW\¶V�KROLVWLF�DSSURDFK�DQG�KRZ�LW�KHOSHG�PH�WR�WDNH�EDFN�VRPH�FRQWURO� over my health and wellbeing.

OUR FUTURE PLANS

We recognise the long-lasting impact that the pandemic will have on us all, particularly on those who we exist to support. It is more critical than ever that we take the time to understand the needs of people with cancer and how we are uniquely positioned to support them.

The Charity is now undertaking detailed strategic work to understand the full impact of our services over the last year and to inform our decisions about the future. Over the coming months we will work with our beneficiaries, with our partners and with our funders to define how we need to adapt to make sure we can make the greatest tangible impact with our existing resources.

3URWHFWLQJ�3HQQ\�%URKQ¶V�OHJDF\�DQG�WKH�VXVWDLQDELOLW\�WKH�&KDUity has worked so hard to achieve will remain a priority, as will taking learnings from all we have delivered over our 40 years.

THANK YOU

To all those using our services, who generously let us into their lives and who continue to inspire us on a daily basis.

We would also like to thank

The Pilkington Family, The Julia and Hans Rausing Trust, Walk the Walk, Amethyst Trust, The Annett Trust, The Blair Foundation, Friends of Bristol Haematology & Oncology Centre, The Clothworkers' Foundation, Community Foundation in Wales, Douglas Arter Foundation, The Eagle Charity Trust, The Eveson Charitable Trust, The February Foundation, The Frognal Trust, The Green Hall Foundation, Edith Lilian Harrison 2000 Foundation, The Inchcape Foundation, John James Bristol Foundation, Sir Charles Jessel Charitable Trust, The Langtree Trust, Ian Mactaggart Trust, The Medlock Charitable Trust, The Antony and Elizabeth Mellows, Charitable Settlement, The Gerald Micklem Charitable Trust, G M Morrison Charitable Trust, The Morrisons Foundation, Leanne & Winston Newman Charitable Trust, The Austin & Hope Pilkington Trust, Pink Ribbon Foundation, Postcode Local Trust The Prince of Wales's Charitable Foundation, Quartet Community Foundation and the Lord Merthyr Fund, The Rainford Trust,Renishaw Charities Committee, The Shanly Foundation, Florence Shute Millennium Trust, The Souter Charitable Trust, The Charity of Stella Symons, Tesco Bags of Help, Sir Jules Thorn Charitable Trust, Tim Tiley Bursary Fund, The Roger & Douglas Turner Charitable Trust, The Uxbridge Charitable Trust, VWV Charitable Trust, Wesport, The Will Charitable Trust, Yorkshire Building Society Charitable Foundation, The Elizabeth And Prince Zaiger Trust.

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PENNY BROHN CANCER CARE

TRUSTEES REPORT (CONTINUED) FOR THE YEAR ENDED 30 NOVEMBER 2020

(YHU\RQH�ZKR�GRQDWHG�WR�RXU�³'RXEOH�<RXU�0RQH\´�FDPSDLJQ�DQd, in particular, to our anonymous donor for their support and vision. Every single supporter who left a gift in their Will, or in memory of a loved one. All our Philanthropists and Corporate supporters. Our participants in the Bath Half Marathon and other running, walking and challenge events. Every supporter who shaved their head, baked cakes or raised money in other creative ways too numerous to mention. All those who took on our virtual events including our first virtual Stomp and the Virtual London Marathon. To our loyal Event Committee members for continuing to support the charity despite us not being able to run events during the Pandemic. To those who have hired our venue and bought tickets for fundraising events including 500 guests at our Christmas Concert in the Clifton College Chapel in Bristol and all those who performed at the event. All our events supporters who donated their ticket instead of requesting a refund. Everybody who shopped at the Hub or online, donated goods for resale. Everybody who donated to fund the Hub.

Genesis Care and our other partners for their belief and commitment to people with cancer and, our dedicated, loyal and committed Trustees, staff and volunteers.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Penny Brohn UK is the working name of Penny Brohn Cancer Care (the Charity) and is a company limited by guarantee, registered on 17 May 1982. It is governed by Memorandum and Articles of Association.

Trustee Board

Penny Brohn UK is governed by a Board of Trustees (the Board). The %RDUG¶V�UHPLW�LV�WR�VHW�WKH�YLVLRQ�� strategy and objectives for the Charity in accordance with its objects, to manage the financial resources in the best interest of the charity and its beneficiaries and to ensure the Charity operates in a manner consistent with its objectives. During the year, formal meetings became remote. The Board met formally six times in 2020 (2019: five times).

Two committees also met regularly throughout the year. Finance and Audit Committee met once; the Remuneration and Appointments Committee also met once. Trustee committee members are listed on page 1.

Appointment, Induction and Training

Trustees are appointed to provide the skills identified as being necessary for the good governance of Penny Brohn UK. There is a formal recruitment process for identifying new Trustees and once appointed, an induction and training process. The induction of new Trustees is tailored to the needs of the individual but includes the provision of key documents and information relating to the Charity, a guided tour of the Centre, introduction to the Chair, Executive Team and other key staff and an outline of the duties, responsibilities and obligations of being a Trustee. Trustees are encouraged to attend external and internal development events where it is felt these will facilitate the execution of their governance role.

The term of office as Trustee is a three-year period and Trustees may serve up to three terms except in exceptional circumstances when the term of office can be longer. All Trustees give their time voluntarily and receive no remuneration or benefits from the Charity. Trustees are required to disclose all relevant interests and register them with the CEO and withdraw from decisions where a potential conflict of interest might arise. Any expenses reclaimed or related party transactions in the year are set out in note 24 to the financial statements.

Key Management

The Board delegates the day-to-day running of the Charity to a Chief Executive Officer and her Senior Management Team who report to the Board on a formal, regular basis. The Team is wholly comprised of nonstatutory directors namely the CEO, Commercial Director, Services Operations Lead, Financial Controller and, GenesisCare/Penny Brohn UK Partnership Lead and Medical Lead.

Page 9

PENNY BROHN CANCER CARE

TRUSTEES REPORT (CONTINUED) FOR THE YEAR ENDED 30 NOVEMBER 2020

Public Benefit

The Trustees of Penny Brohn UK ensure that the Charity carries out its aims and objectives and that these SURYLGH�SXEOLF�EHQHILW��,Q�GRLQJ�VR�WKH�7UXVWHHV�WDNH�LQWR�FRQVLGHUDWLRQ�WKH�&KDULW\�&RPPLVVLRQ¶V�SXEOLVKHG� guidance on the Public Benefit requirement under the Charities Act 2011.

Our Charitable Purpose

The Charitable objects of the Charity, as set out in the Articles of Association, are to advance health and to relieve sickness and distress, especially but not exclusively in regard to cancer and those affected by it, by such means as the Trustees in their discretion shall decide.

Our core purpose: To bring improved health and enrichment to every person affected by cancer.

Our vision: To reach more people with our Bristol Whole Life Approach.

We are the only charity in the UK to take an integrated whole person approach to cancer support using a pathway made up of appropriate, evidence-based therapies that work alongside standard medical treatment to achieve the best health and wellbeing.

Our Bristol Whole Life Approach shows that there is more to health than simply what is going on in our bodies and that to be resilient and to function as well as we can, we need to pay attention to our mental, emotional and spiritual health as well as our physical health.

We also help those supporting someone with cancer to manage the impact of cancer and build their own personal resources.

Pay Policy

The pay and remuneration of the Executive Team is subject to the same approach as used for employees generally and is controlled by the Executive Pay policy reviewed by the Remuneration & Appointments Committee and adopted by the full Trustee Board. The pay and remuneration of the CEO is reviewed by the Chair and Deputy Chair of Trustees and adopted by the Full Trustee Board. There were 58 (2019: 76) full time equivalent employees during the year.

Trading subsidiary

The Charity has a wholly owned trading subsidiary, Shop@PennyBrohn Ltd, which passes all its taxable profit by way of gift aid to further the aims of the Charity. Shop@PennyBrohn Ltd. has a board of directors, which during the year under review consisted of three Trustees and two independent Directors. Penny Brohn Cancer Care owns the entire share capital of the subsidiary.

Risk Management

The Trustees have adopted a risk management strategy which comprises:

Strategic Risk Register

µ6WUDWHJLF¶�ULVNV�DUH�WKH�ELJ��JDPH-changing risks that influence the achievHPHQW�RI�WKH�FKDULW\¶V�VWUDWHJLF� aims. They might be major internal risks such as financial sustainability or compliance risks. Or they may be external events with high impact we cannot control and which we therefore need to respond to [1].

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PENNY BROHN CANCER CARE

TRUSTEES REPORT (CONTINUED) FOR THE YEAR ENDED 30 NOVEMBER 2020

The risk register is submitted to Trustees four times a year or at the point of significant changes in risk likelihood or impact.

Strategic Risk Mitigation of Risk
Financial Sustainability
Short to medium term income levels will not cover
expected costs, threatening liquidity
Medium to Long term income does not support our
aims, threatening impact.		 Projections for Trusts, Community and Legacies
are based on established pipelines.
£1 million mortgage arranged in 2019
£1 million revolving credit facility available
Strategy and 5-year plan currently underway
Impact
We are not investing in the most relevant services
to make maximum impact, potentially due to a
lack of information about the need and views of
people with cancer and lack of opportunity to
review where we are investing our efforts		 Continue to develop the Client Voice and embed
it across all we do
Develop
and
embed
Quality
Assurance
programme
8VH%RDUG³$ZD\'D\V´WRUHYLHZSULRULWLHV
Governance and Compliance
An incident arises because clients, volunteers or
staff are not safeguarded as they should be by
our organisation. Risk has changed due to
increased digital contact		 We are developing a safeguarding policy ensuring
procedures and processes are in place

Fundraising Standards

The Trustees are aware of current legislation and updated guidance from the Charity Commission.

Penny Brohn UK is a fully contributing member of the Fundraising Regulator and Institute of Fundraising. We adhere to the Codes of Fundraising Practice in all activity. We are fully compliant with all of the regulation where it applies to us. We do not contract with third party fundraising organisations.

We are committed to best practice in all areas of fundraising activity and are committed to delivering transparent, effective and ethical fundraising. Our supporters are at the heart of our fundraising and we take our responsibilities to them, and our relationships with them, very seriously.

Staff

We continue to develop strong engagement with our staff team. Our staff have shown remarkable resilience throughout the year as we implemented our transformation plan. 48 core staff have left the charity since January 2020 including 33 due to redundancy.

Core headcount has reduced by 40%. Staff have worked remotely wherever possible during periods of national restrictions. We have implemented measures to ensure staff are supported whilst working from home and are currently reviewing our flexible and remote working policies as we emerge from lockdown.

Working with Volunteers

Our volunteers continued to contribute vital support throughout 2020 including remotely during periods of National Restriction. Many of our volunteers live with, or support others living with, cancer. During the pandemic volunteers were a key support to enabling transfer to digital services. In addition, the gardens at the National Centre are in the capable hands of a committed group of gardeners who keep it beautiful and affordable.

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PENNY BROHN CANCER CARE

TRUSTEES REPORT (CONTINUED) FOR THE YEAR ENDED 30 NOVEMBER 2020

FINANCIAL REVIEW

Statement of Financial Affairs (SoFA)

During the year, the Charity received £2.7m unrestricted income (2019: £2.1m). Restricted income of £255k (2019: £568k) was donated resulting in total income of £2.9m (2019: £2.7m).

Major sources of funding were received from:

Major sources of funding were received from:
2020 2019
�¶��� �¶�00
Walk the Walk 25 500
Pilkington Trust 470
Trusts and Grants 492 576
Personal donations 456 348
Legacies 222 53
Community fundraising activities and events 140 322
Strategic partnerships 503 483

£477k was received from HMRC as grants under the Coronavirus Job Retention Scheme.

The impact of Coronavirus had a particularly negative impact on our community fundraising income due to the cancellation of events, notably the annual Long Table Lunch, Walk the Walk and the London Marathon. However, our first virtual event Stomp which took place in October 2020 raised £19k.

3HUVRQDO�GRQDWLRQ�LQFRPH�RI�����N�LQFOXGHV�WKH�LQFRPH�IURP�WKH�YHU\�VXFFHVVIXO�³'RXEOH�\RXU�0RQH\´� campaign which raised £155k.

Expenditure in the year was £2.8m (2019: £3.2m). The financial impact of the Transformation Plan and reduced staff costs will be seen in 2021 as the redundancies took place in the latter months of the financial year. Staff costs £2m (2019: £2.4m) are included gross of the CJRS grant (£477k) which is included as other income.

We closed the year with a surplus of £130k. This was higher than anticipated due to the generosity of our donors in the last quarter of 2020. The surplus ensures we have improved unrestricted reserves to meet the challenges of the coming year.

Balance Sheet

Our National Centre based outside Bristol at Pill was valued in 2019 at £6.1m. We spent £18k on fixtures and fittings and computer equipment during the year. Leasehold improvements to the Hub on Queens Road were £118k.

Current assets increased from £723k to £1,301k during the year, reflected predominantly by an increase in our cash balances.

Current Liabilities increased from £177k to £296k. Repayments commence for the drawdown of the mortgage commence in in January 2021. The mortgage has a 10-year term. The mortgage provided additional liquidity to fund the 2019 deficit of £470k and ensure adequate cash reserves through the duration of the pandemic.

Long Term Liabilities have increased from £600k to £944k which is the balance of the mortgage due after more than one year and reflects the additional liquidity which was drawn down in the year as a result of the pandemic.

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PENNY BROHN CANCER CARE

TRUSTEES REPORT (CONTINUED) FOR THE YEAR ENDED 30 NOVEMBER 2020

Shop@PennyBrohn Ltd

The trading subsidiary carries out all the trading activities of Penny Brohn Cancer Care. The trading subsidiary undertook the hire of room and associated services at the National Centre and continued running the shop at the National Centre. There was very little trading activity during 2020 due to the closure of the National Centre due to Covid-19; £76k (2019: £272k). Shop @ Penny Brohn Ltd generated a small profit of £2K during the year (2019: £7k) and made a donation under deed of covenant to Penny Brohn UK of £2k (2019: £7k).

Reserves Policy

Group reserves at 30 November 2020 amount to £6.3m (2019: £6.2m) of which £5.2m relates to the capital fund (2019: £5.6m). This increased in 2019 due to the valuation of our National Centre. £186k are restricted funds (2019: £288k). Restricted Funds are itemised in Note 20 of the financial statements. Free reserves have increased from £265k in 2019 to £882k. The increase in free reserves is due to the surplus generated during the year as well as the drawdown of capital monies from the capital fund.

The Trustees consider that free reserves of two months expenditure is desirable. A higher level of free reserves was achieved in 2020. However this does leave us with a contingency for the continued uncertainty in the coming financial year as the Pandemic continues. Our current year budget incorporates an assumption that we will continue to achieve reserves of £460k in 2020/21.

Going Concern

The Finance & Audit Committee regularly review various relevant financial reports from the Charity, including forecast cash flow scenarios, to attest positively to the Charity's going concern status. This review is shared with the full Trustee Board at each Trustee meeting.

The Charity has two committed loan facilities:

  1. a mortgage of £1m with NatWest Bank. The mortgage has a 10-year term and an interest rate of 3.42%

  2. a revolving loan facility of up to £1m with Triodos Bank which was not utilised during the year.

We have an excellent relationship with NatWest Bank and Triodos Bank.

The Charity plans to continue to hold these term debt facilities, secured on the National Centre, that are used to bridge timing gaps in revenue raising.

The Charity also received a £50,000 Bounceback loan in December 2020, to aid cash flow over the Winter of 2020/21. The loan is 100% guaranteed by the Government and repayments will commence in December 2021.

The Trustees have a structured approach to the financial strategy of the Charity, which includes the 5-year plan reviewed by Trustees annually from which the 12-month budget and cash flow forecast is prepared. Quarterly forecasts are also prepared. The Trustees review and monitor the budget and cash flows at each Trustees meeting, interrogating variances. This continuous monitoring and control ensures the Trustees can properly review WKH�&KDULW\¶V going concern status and its financial viability.

7KH�7UXVWHHV�UHYLHZ�WKH�&KDULW\¶V�IRUHFDVWV�DQG�SURMHFtions at each Board meeting and have a reasonable expectation that the Charity has adequate resources to continue in operational existence for a period of at least 12 months following the date of approval of these financial statements. The Group therefore continues to adopt the going concern basis for preparing its consolidated financial statements.

Page 13

PENNY BROHN CANCER CARE

TRUSTEES REPORT (CONTINUED) FOR THE YEAR ENDED 30 NOVEMBER 2020

DISCLOSURE OF INFORMATION TO THE AUDITORS

In so far as the Trustees are aware:

Approved by order of the members of the Board of Trustees and signed on their behalf, by:

Stephen Rosser

Chair

Date:

Page 14

PENNY BROHN CANCER CARE

STATEMENT OF TRUSTEES' RESPONSIBILITIES FOR THE YEAR ENDED 30 NOVEMBER 2020

The Trustees (who are also the 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 (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Trustees to prepare financial statements for each financial year. Under company law, the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Group and the Charity and of their incoming resources and application of resources, including their income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Group and the Charity's transactions and disclose with reasonable accuracy at any time the financial position of the Group and the Charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Group and the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Approved by order of the members of the board of Trustees and signed on its behalf by:

Stephen Rosser Chair Date:

Page 15

PENNY BROHN CANCER CARE

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PENNY BROHN CANCER CARE

OPINION

We have audited the financial statements of Penny Brohn Cancer Care (the 'parent charitable company') and its subsidiaries (the 'group') for the year ended 30 November 2020 which comprise the Consolidated Statement of Financial Activities, the Consolidated Balance Sheet, the Charity Balance Sheet, the Consolidated Statement of Cash Flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

BASIS FOR OPINION

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

CONCLUSIONS RELATING TO GOING CONCERN

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

OTHER INFORMATION

The Trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Auditors' Report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Page 16

PENNY BROHN CANCER CARE

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PENNY BROHN CANCER CARE (CONTINUED)

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 our knowledge and understanding of the charitable company and its 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 Companies Act 2006 requires us to report to you if, in our opinion:

RESPONSIBILITIES OF TRUSTEES

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

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

AUDITORS' 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 Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.

Page 17

PENNY BROHN CANCER CARE

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PENNY BROHN CANCER CARE (CONTINUED)

USE OF OUR REPORT

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and its members, as a body, for our audit work, for this report, or for the opinions we have formed.

David Butler FCA DChA (Senior Statutory Auditor) for and on behalf of

Bishop Fleming LLP Chartered Accountants Statutory Auditors 10 Temple Back

Bristol BS1 6FL

Date:

Page 18

PENNY BROHN CANCER CARE

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 30 NOVEMBER 2020

Note
INCOME FROM:
Donations and legacies
3
Charitable activities
4
Other trading activities
5
Other income
6
TOTAL INCOME
EXPENDITURE ON:
Raising funds
7
Charitable activities
8
TOTAL EXPENDITURE
NET MOVEMENT IN FUNDS BEFORE
OTHER RECOGNISED GAINS
OTHER RECOGNISED GAINS:
Gains on revaluation of fixed assets
NET MOVEMENT IN FUNDS
RECONCILIATION OF FUNDS:
Total funds brought forward
Net movement in funds
TOTAL FUNDS CARRIED FORWARD		 Unrestricted
funds
2020
£000
1,553
536
111
477
2,677
499
1,946
2,445
232
-
232
5,920
232
6,152		 Restricted
funds
2020
£000
255
-
-
-
255
-
357
357
(102)
-
(102)
288
(102)
186		 Total
funds
2020
£000
1,808
536
111
477
2,932
499
2,303
2,802
130
-
130
6,208
130
6,338		 Total
funds
2019
£000
1,851
523
313
-
2,687
792
2,371
3,163
(476)
1,424
948
5,260
948
6,208

The Consolidated Statement of Financial Activities includes all gains and losses recognised in the year.

The notes on pages 23 to 42 form part of these financial statements.

Page 19

PENNY BROHN CANCER CARE REGISTERED NUMBER:01635916

CONSOLIDATED BALANCE SHEET AS AT 30 NOVEMBER 2020

Note
FIXED ASSETS
Intangible assets
12
Tangible assets
13
Investments
14
CURRENT ASSETS
Stocks
15
Debtors
16
Cash at bank and in hand
Creditors: amounts falling due within one
year
17
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT
LIABILITIES
Creditors: amounts falling due after more
than one year
18
TOTAL NET ASSETS
CHARITY FUNDS
Restricted funds
20
Unrestricted funds
20
TOTAL FUNDS		 13
208
1,080
1,301
(296)		 2020
£000
63
6,205
7
6,275
1,005
7,280
(944)
6,336
186
6,150
6,336		 16
274
433
723
(177)		 2019
£000
85
6,170
7
6,262
546
6,808
(600)
6,208
288
5,920
6,208

The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.

The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:

Stephen Rosser Chair

Ken Guy Trustee

Date:

The notes on pages 23 to 42 form part of these financial statements.

Page 20

PENNY BROHN CANCER CARE REGISTERED NUMBER:01635916

CHARITY STATEMENT OF FINANCIAL POSITION FOR THE YEAR ENDED 30 NOVEMBER 2020

Note
FIXED ASSETS
Intangible assets
12
Tangible assets
13
Investments
14
CURRENT ASSETS
Debtors
16
Cash at bank and in hand
Creditors: amounts falling due within one
year
17
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT
LIABILITIES
Creditors: amounts falling due after more
than one year
18
TOTAL NET ASSETS
CHARITY FUNDS
Restricted funds
20
Unrestricted funds
20
TOTAL FUNDS		 249
1,001
1,250
(248)		 2020
£000
63
6,205
7
6,275
1,002
7,277
(944)
6,333
572
5,761
6,333		 343
360
703
(161)		 2019
£000
85
6,170
7
6,262
542
6,804
(600)
6,204
288
5,916
6,204

The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.

The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:

Stephen Rosser Chair

Ken Guy Trustee

Date:

The notes on pages 23 to 42 form part of these financial statements.

Page 21

PENNY BROHN CANCER CARE

CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 NOVEMBER 2020

CASH FLOWS FROM OPERATING ACTIVITIES
Net cash used in operating activities
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of intangible assets
Purchase of tangible fixed assets
NET CASH USED IN INVESTING ACTIVITIES
CASH FLOWS FROM FINANCING ACTIVITIES
NET CASH PROVIDED BY FINANCING ACTIVITIES
CHANGE IN CASH AND CASH EQUIVALENTS IN THE YEAR
Cash and cash equivalents at the beginning of the year
CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR
The notes on pages 23 to 42 form part of these financial statements		 2020
£000
383
-
(136)
(136)
-
247
(167)
80		 2019
£000
(612)
(49)
(32)
(81)
-
(693)
526
(167)

Page 22

PENNY BROHN CANCER CARE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 NOVEMBER 2020

1. GENERAL INFORMATION

Penny Brohn Cancer Care is a charity registered in England and Wales and a company limited by guarantee. It was incorporated on 17 May 1982 (company number 01635916) and registered as a charity on 30 June 1982 (charity number 284881). Penny Brohn UK is the working name of Penny Brohn Cancer Care.

The company was established under a Memorandum of Association which established the objects and powers of the charitable company and is governed under its Articles of Association.

2. ACCOUNTING POLICIES

2.1 BASIS OF PREPARATION OF FINANCIAL STATEMENTS

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

Penny Brohn Cancer Care 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.

The Consolidated Statement of Financial Activities (SOFA) and Consolidated Balance Sheet consolidate the financial statements of the Charity and its subsidiary undertaking. The results of the subsidiary are consolidated on a line by line basis.

The Charity has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Financial Activities in these financial statements.

Page 23

PENNY BROHN CANCER CARE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 NOVEMBER 2020

2. ACCOUNTING POLICIES (continued)

2.2 GOING CONCERN

The Charity's forecasts and projections show that the Charity expects to operate within the level of its current debt facility. As detailed in the annual report, the Charity seeks to increase income from fundraising to enable more people to access free support to help them live well with cancer, and allow us to influence the healthcare agenda.

The Finance & Audit Committee regularly review various relevant financial reports from the Charity, including forecast cash flow scenarios, to attest positively to the Charity's going concern status. This review is shared with the full Trustee Board at each Trustee meeting.

The Charity has two committed loan facilities. It plans to continue to hold these term debt facilities, secured on the National Centre, that are used to bridge timing gaps in revenue raising.

The Charity also received a £50,000 Bounceback loan in December 2020, to aid cash flow over the Winter of 2020/21. The loan is 100% guaranteed by the Government and repayments will commence in December 2021.

The Trustees have a structured approach to the financial strategy of the Charity, which includes the 5 year plan reviewed by Trustees annually from which the 12 month budget and cash flow forecast is prepared. Quarterly forecasts are also prepared. Trustees review and monitor the budget and cash flows at each Trustees meeting, interrogating variances. This continuous monitoring and control ensures the Trustees are able to properly review the Charity’s going concern status and its financial viability. The Trustees review the Charity’s forecasts and projections at each Board meeting and have a reasonable expectation that the Charity has adequate resources to continue in operational existence for a period of at least 12 months following the date of approval of these financial statements. The Group therefore continues to adopt the going concern basis for preparing its consolidated financial statements.

2.3 INCOME

All income is recognised once the Charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

The recognition of income from legacies is dependent on establishing entitlement, the probability of receipt and the ability to estimate with sufficient accuracy the amount receivable. Evidence of entitlement to a legacy exists when the Charity has sufficient evidence that a gift has been left to them (through knowledge of the existence of a valid will and the death of the benefactor) and the executor is satisfied that the property in question will not be required to satisfy claims in the estate. Receipt of a legacy must be recognised when it is probable that it will be received and the fair value of the amount receivable, which will generally be the expected cash amount to be distributed to the Charity, can be reliably measured.

Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.

Page 24

PENNY BROHN CANCER CARE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 NOVEMBER 2020

2. ACCOUNTING POLICIES (continued)

2.4 EXPENDITURE

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.

Expenditure on raising funds includes all expenditure incurred by the Group to raise funds for its charitable purposes and includes costs of all fundraising activities events and non-charitable trading.

Expenditure on charitable activities is incurred on directly undertaking the activities which further the Group's objectives, as well as any associated support costs.

All expenditure is inclusive of irrecoverable VAT.

2.5 INTEREST RECEIVABLE

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Group; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.

2.6 INTANGIBLE ASSETS AND AMORTISATION

Intangible assets costing £500 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Page 25

PENNY BROHN CANCER CARE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 NOVEMBER 2020

2. ACCOUNTING POLICIES (continued)

2.6 INTANGIBLE ASSETS AND AMORTISATION (CONTINUED)

Amortisation is provided on the following bases:

Website - 25 %
Computer software - 20 %

2.7 TANGIBLE FIXED ASSETS AND DEPRECIATION

Tangible fixed assets costing £500 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.

Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.

Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Freehold property - 2%
Long-term leasehold property - over the length of the lease
Fixtures and fittings - 10%
Computer equipment - 20%

2.8 INVESTMENTS

Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the Balance Sheet date, unless the value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and presented as ‘Gains/(Losses) on investments’ in the Consolidated Statement of Financial Activities.

2.9 STOCKS

Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads.

2.10 DEBTORS

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

2.11 CASH AT BANK AND IN HAND

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

Page 26

PENNY BROHN CANCER CARE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 NOVEMBER 2020

2. ACCOUNTING POLICIES (continued)

2.12 LIABILITIES AND PROVISIONS

Liabilities are recognised when there is an obligation at the Balance Sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.

Liabilities are recognised at the amount that the Charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.

Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Consolidated Statement of Financial Activities as a finance cost.

2.13 FINANCIAL INSTRUMENTS

The Group 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 with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

2.14 PENSIONS

The Group operates a defined contribution pension scheme and the pension charge represents the amounts payable by the Group to the fund in respect of the year.

2.15 FUND ACCOUNTING

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Group and which have not been designated for other purposes.

Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Group for particular purposes. 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.

Investment income, gains and losses are allocated to the appropriate fund.

Page 27

PENNY BROHN CANCER CARE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 NOVEMBER 2020

3. INCOME FROM DONATIONS AND LEGACIES

Unrestricted
funds
2020
£000
DONATIONS
General donations
1,272
Donations from the Friends of Penny Brohn
Cancer Care
59
Legacies
222
1,553
TOTAL 2019
1,851
4.
INCOME FROM CHARITABLE ACTIVITIES		 Restricted
funds
2020
£000
255
-
-
255
-		 Total
funds
2020
£000
1,527
59
222
1,808
1,851		 Total
funds
2019
£000
1,738
60
53
1,851
Unrestricted
funds
2020
£000
Service generated income from partnerships
483
Service generated income from NHS
20
Service generated income from training
-
Management recharges
33
536		 Total
funds
2020
£000
483
20
-
33
536		 Total
funds
2019
£000
459
18
13
33
523

Page 28

PENNY BROHN CANCER CARE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 NOVEMBER 2020

5. INCOME FROM OTHER TRADING ACTIVITIES

Income from fundraising events

Unrestricted
funds
2020
£000
Facilities income
26
The Hub
9
35
Income from non charitable trading activities
Unrestricted
funds
2020
£000
Shop@PennyBrohn Ltd
76
6.
OTHER INCOMING RESOURCES
Unrestricted
funds
2020
£000
CJRS recovery grant
477		 Total
funds
2020
£000
26
9
35
Total
funds
2020
£000
76
Total
funds
2020
£000
477		 Total
funds
2019
£000
41
-
41
Total
funds
2019
£000
272
Total
funds
2019
£000
-

Page 29

PENNY BROHN CANCER CARE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 NOVEMBER 2020

7. EXPENDITURE ON RAISING FUNDS

FUNDRAISING TRADING EXPENSES

Unrestricted
funds
2020
£000
Fundraising
65
Shop@PennyBrohn Ltd
74
The Hub
40
Wages and salaries
304
Pension costs
16
499		 Total
funds
2020
£000
65
74
40
304
16
499		 Total
funds
2019
£000
177
266
-
332
17
792
8.
ANALYSIS OF CHARITABLE ACTIVITIES
Activities
undertaken
directly
2020
£000
Face to Face and Remote Service delivery
1,096
Adminstration
614
Communications
102
Partnerships
101
Facilities
390
2,303
9.
AUDITORS' REMUNERATION
Fees payable to the Charity's auditor for the audit of the Charity's annual
accounts		 Total
funds
2020
£000
1,096
614
102
101
390
2,303
2020
£000
13		 Total
funds
2019
£000
826
461
174
381
529
2,371
2019
£000
12

Page 30

PENNY BROHN CANCER CARE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 NOVEMBER 2020

10. STAFF COSTS

Wages and salaries
Social security costs
Contribution to defined contribution pension
schemes		 Group
2020
£000
1,831
128
87
2,046		 Group
2019
£000
2,187
163
109
2,459		 Charity
2020
£000
1,831
128
87
2,046		 Charity
2019
£000
2,187
163
109
2,459

Redundancy costs in the year amounted to £77k (2019: £13k).

The average number of persons employed by the Charity during the year was as follows:

Staff
The average headcount expressed as full-time equivalents was:
Delivery of face to face and remote client services
Fundraising and trading
Finance and administration
Facilities
The Hub		 Group
2020
No.
113
Group
2020
No.
28
8
10
11
1
58		 Group
2019
No.
142
Group
2019
No.
39
11
11
15
-
76

The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:

Group Group
2020 2019
No. No.
In the band £70,001 - £80,000 - 1

The key management personnel of the group and parent charity comprise the Trustees, the CEO and 3 members of the Senior Management Team, the Commercial Director, Financial Controller and Services Lead. The total employee benefits of the key management personnel f the charity for the year was £271k (2019: £377k), including social security costs of £25k (2019: £36k).

Page 31

PENNY BROHN CANCER CARE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 NOVEMBER 2020

11. TRUSTEES' REMUNERATION AND EXPENSES

During the year, no Trustees received any remuneration or other benefits (2019 - £NIL).

During the year ended 30 November 2020, no Trustee expenses have been incurred (2019 - £NIL).

12. INTANGIBLE ASSETS

Group and Charity

COST
At 1 December 2019
At 30 November 2020
AMORTISATION
At 1 December 2019
Charge for the year
At 30 November 2020
NET BOOK VALUE
At 30 November 2020
At 30 November 2019		 Website
£000
39
39
33
5
39
-
6		 Computer
software
£000
86
86
7
16
23
63
79		 Total
£000
125
125
40
21
62
63
85

Page 32

PENNY BROHN CANCER CARE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 NOVEMBER 2020

13. TANGIBLE FIXED ASSETS

GROUP AND CHARITY

COST OR VALUATION
At 1 December 2019
Additions
Disposals
At 30 November 2020
DEPRECIATION
At 1 December 2019
Charge for the year
On disposals
At 30 November 2020
NET BOOK VALUE
At 30 November 2020
At 30 November 2019		 Freehold
property
£000
6,424
-
-
6,424
324
72
-
396
6,028
6,100		 Long-term
leasehold
property
£000
-
118
-
118
-
12
-
12
106
-		 Fixtures and
fittings
£000
373
9
-
382
329
8
-
337
45
44		 Computer
equipment
£000
186
9
(73)
122
160
9
(73)
96
26
26		 Total
£000
6,983
136
(73)
7,046
813
101
(73)
841
6,205
6,170

It is Penny Brohn Cancer Care's policy to revaluate freehold property every 5 year.s The freehold property was revalued in August 2019 by Jones Lang LaSalle Limited, a firm of valuers external to the Charity. The property's open market value was considered to be £6,100,000 in accordance with the RICS valuation model.

The carrying amount under the cost model of the assets which have been revalued would have been £6,045,000 (2019 - £6,045,000).

Page 33

PENNY BROHN CANCER CARE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 NOVEMBER 2020

14. FIXED ASSET INVESTMENTS

Group and Charity
COST OR VALUATION
At 1 December 2019
AT 30 NOVEMBER 2020
NET BOOK VALUE
AT 30 NOVEMBER 2020
AT 30 NOVEMBER 2019
15.
STOCKS
Group
2020
£000
Finished goods and goods for resale
13		 Listed
investments
£000
7
7
7
7
Group
2019
£000
16

16. DEBTORS

DUE WITHIN ONE YEAR
Trade debtors
Amounts owed by group undertakings
Other debtors
Prepayments and accrued income		 Group
2020
£000
113
-
1
94
208		 Group
2019
£000
76
-
-
198
274		 Charity
2020
£000
111
44
1
93
249		 Charity
2019
£000
67
78
-
198
343

Page 34

PENNY BROHN CANCER CARE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 NOVEMBER 2020

17. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Bank loans
Trade creditors
Other taxation and social security
Other creditors
Accruals and deferred income		 Group
2020
£000
56
57
31
14
138
296		 Group
2019
£000
-
60
51
22
44
177		 Charity
2020
£000
56
55
31
14
92
248		 Charity
2019
£000
-
54
42
22
43
161

Facilities with NatWest Bank and Triodos Bank, secured on the freehold property of the Charity, are in place.

Deferred income at 1 December 2019
Resources deferred during the year
Amounts released from previous periods		 Group
2020
£000
7
19
(7)
19		 Group
2019
£000
9
7
(9)
7

18. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

Group Group Charity Charity
2020 2019 2020 2019
£000 £000 £000 £000
Bank loans 944 600 944 600

The aggregate amount of liabilities payable or repayable wholly or in part more than five years after the reporting date is:

Payable or repayable by instalments Group
2020
£000
700
700		 Group
2019
£000
356
356		 Charity
2020
£000
700
700		 Charity
2019
£000
356
356

Page 35

PENNY BROHN CANCER CARE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 NOVEMBER 2020

19. FINANCIAL INSTRUMENTS

Group Group Charity Charity
2020 2019 2020 2019
£000 £000 £000 £000
FINANCIAL ASSETS
Financial assets measured at fair value
through income and expenditure 1,080 433 1,001 360

Financial assets measured at fair value through income and expenditure comprise cash at bank and in hand.

Page 36

PENNY BROHN CANCER CARE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 NOVEMBER 2020

20. STATEMENT OF FUNDS

STATEMENT OF FUNDS - CURRENT YEAR

UNRESTRICTED FUNDS
DESIGNATED FUNDS
Capital fund
GENERAL FUNDS
General fund
Shop@Penny Brohn Ltd
Revaluation reserve
TOTAL UNRESTRICTED
FUNDS
RESTRICTED FUNDS
Bursary fund
Living Well programme
Treatment support clinic
Relaxation chairs
Garden
Nutrition at Penny Brohn
Buildings
Bristol Whole Life Approach in
Scotland
Living Well - National
Community engagement
Pre-treatment support clinic at
BHOC
Remote services
Penny Brohn on the High Street
Trust income
Other small donations
TOTAL OF FUNDS		 Balance at 1
December
2019
£000
5,600
261
4
55
320
5,920
2
20
-
5
2
-
-
16
2
37
1
-
203
-
-
288
6,208		 Income
£000
-
2,600
76
-
2,676
2,676
1
1
6
-
7
10
13
-
12
80
12
56
50
3
4
255
2,931		 Expenditure
£000
(122)
(2,248)
(76)
-
(2,324)
(2,446)
-
(1)
(6)
-
(2)
(10)
(9)
(3)
(12)
(37)
(4)
(56)
(213)
(1)
(3)
(357)
(2,803)		 Transfers
in/out
£000
(265)
265
-
-
265
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 Balance at
30
November
2020
£000
5,213
878
4
55
937
6,150
3
20
-
5
7
-
4
13
2
80
9
-
40
2
1
186
6,336

Page 37

PENNY BROHN CANCER CARE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 NOVEMBER 2020

20. STATEMENT OF FUNDS (CONTINUED)

Capital Fund

The capital fund represents the net book value of fixed assets, less loans secured on the freehold property plus the revaluation reserve.

Transfers between funds are as follows:

a) £135k to capital fund from general fund in respect of fixed asset additions b) £400k from capital fund in respect of revolving credit drawdown

Restricted funds

The Bursary fund is used to help fund client courses and to subsidise travel to the National Centre.

The Living Well programme fund is to enable us to carry out Living Well courses at our National Centre and regionally.

The Treatment Support Clinic fund contains donations to cover the cost of providing Treatment Support Clinic at our National Centre and was supported by grants from a number of trusts during 2020.

The Relaxation chairs fund is a grant to enable us to upgrade and replace our relaxation chairs.

The garden is maintained by a dedicated group of volunteers and brings peace and enjoyment to all visitors to the National Centre.

Our Nutritional programme offers advice on making realistic and sustainable lifestyle changes to support healthy eating. Our programme includes cookery demonstrations, healthy eating days, nutritional therapy and the creation and update of a 7 day recipe planner and was supported in 2020 by a grant from The Gerald Micklem Trust and Sir Charles Jessel Charitable Foundation.

Building expenditure - funds were received from the Postcode Local Trust to help make the National Centre ‘COVID-safe’ as we begin the process of opening it back up—first for commercial venue hire, and subsequently for cancer clients as soon as Government guidance indicates it is safe to do so.

Funds were received from the Green Hall Foundation to improve disabled access through the installation of automatic doors at the National Centre.

The Bristol Whole Life Approach in Scotland is a pilot project to work in partnership with Dumfries House in Ayrshire, giving us the chance to take our Bristol Whole Life Approach to men and women living with cancer in Scotland.

Living Well South Coast - Funding received from The Gerald Micklem Charitable Trust to deliver three Living Well courses on the South Coast, as well as investment into a new regional strategic partnership model. This funding was ultimately repurposed, with approval from the funder, to support our remote services programme.

Living Well Isle of Wight - To support Isle of Wight residents to attend national centre for LW course and Applegate Breast Cancer Support Group to attend "Food to lift the spirits" course. Four Isle of Wight residents attended LW course at NC.

Macmillan mindfulness project is a joint partnership with the National Centre for Integrative Medicine to provide a mindfulness based cognitive therapy programme for people living with cancer and supporters.

Community based health and wellbeing services offer an outstanding opportunity to access deprived communities most in need of our help, before their condition has reached late stage. Our community engagement project is supported by The Princes Trust and The Medlock Charitable Trust.

Page 38

PENNY BROHN CANCER CARE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 NOVEMBER 2020

20. STATEMENT OF FUNDS (CONTINUED)

STATEMENT OF FUNDS - PRIOR YEAR

UNRESTRICTED
FUNDS
DESIGNATED FUNDS
Capital fund
GENERAL FUNDS
General fund
Shop@Penny Brohn
Ltd
Revaluation reserve
TOTAL
UNRESTRICTED
FUNDS
RESTRICTED FUNDS
Bursary fund
Groups and 1:1
services
Music therapy and
creative arts
Living Well programme
Living Well for TYA
Treatment support
clinic
Relaxation chairs
Garden
Nutrition at Penny
Brohn
Buildings
Bristol Whole Life
Approach in Scotland
Living Well - National
Macmillan -
Staffordshire		 Balance at
1 December
2018
£000
4,782		 Income
£000
-
1,847
272
-
2,119
2,119
1
2
5
50
-
16
1
3
11
14
-
47
44		 Expenditure
£000
(32)
(2,496)
(272)
-
(2,768)
(2,800)
-
(2)
(5)
(30)
(4)
(16)
-
(1)
(11)
(14)
(30)
(56)
(44)		 Transfers
in/out
£000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 Gains/
(Losses)
£000
850
527
-
55
582
1,432
-
-
-
-
-
-
-
-
-
-
-
-
-		 Balance at
30
November
2019
£000
5,600
383
4
-
387
5,169
1
-
-
-
4
-
4
-
-
-
46
11
-		 261
4
55
320
5,920
2
-
-
20
-
-
5
2
-
-
16
2
-

Page 39

PENNY BROHN CANCER CARE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 NOVEMBER 2020

20. STATEMENT OF FUNDS (CONTINUED)

STATEMENT OF FUNDS - PRIOR YEAR (CONTINUED)

Balance at
1 December
2018
£000

Community
engagement
25
Advocacy and
information resources
-
Pre-treatment support
clinic at BHOC
-
Remote services
-
Penny Brohn on the
High Street
-
Trust income
-
91
TOTAL OF FUNDS
5,260		 Income
£000
Expenditure
£000
Transfers
in/out
£000
92
(80)
-
15
(15)
-
22
(21)
-
8
-
(8)
224
(21)
-
13
(13)
-
568
(363)
(8)
2,687
(3,163)
(8)		 Gains/
(Losses)
£000
-
-
-
-
-
-
-
1,432		 Balance at
30
November
2019
£000
37
-
1
-
203
-
288
6,208

21. ANALYSIS OF NET ASSETS BETWEEN FUNDS

ANALYSIS OF NET ASSETS BETWEEN FUNDS - CURRENT PERIOD

Unrestricted
funds
2020
£000
Tangible fixed assets
6,205
Intangible fixed assets
63
Fixed asset investments
7
Current assets
1,115
Creditors due within one year
(296)
Creditors due in more than one year
(944)
TOTAL
6,150		 Restricted
funds
2020
£000
-
-
-
186
-
-
186		 Total
funds
2020
£000
6,205
63
7
1,301
(296)
(944)
6,336

Page 40

PENNY BROHN CANCER CARE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 NOVEMBER 2020

21.
ANALYSIS OF NET ASSETS BETWEEN FUNDS (CONTINUED)
ANALYSIS OF NET ASSETS BETWEEN FUNDS - PRIOR PERIOD
Unrestricted
funds
2019
£000
Tangible fixed assets
6,170
Intangible fixed assets
85
Fixed asset investments
7
Current assets
435
Creditors due within one year
(177)
Creditors due in more than one year
(600)
TOTAL
5,920
22.
RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASH FLOW
ACTIVITIES
Net income/expenditure for the period (as per Statement of Financial
Activities)
ADJUSTMENTS FOR:
Depreciation charges
Amortisation charges
Decrease/(increase) in stocks
Decrease/(increase) in debtors
Increase/(decrease) in creditors
NET CASH PROVIDED BY/(USED IN) OPERATING ACTIVITIES
23.
ANALYSIS OF CASH AND CASH EQUIVALENTS
Cash in hand
Notice deposits (less than 3 months)
TOTAL CASH AND CASH EQUIVALENTS		 Restricted
funds
2019
Total
funds
2019
£000
£000
-
6,170
-
85
-
7
288
723
-
(177)
-
(600)
288
6,208
FROM OPERATING
Group
Group
2020
2019
£000
£000
130
(476)
100
16
22
16
3
(2)
65
(140)
63
(26)
383
(612)
Group
Group
2020
2019
£000
£000
1,080
433
(1,000)
(600)
80
(167)

Page 41

PENNY BROHN CANCER CARE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 NOVEMBER 2020

24. ANALYSIS OF CHANGES IN NET FUNDS

Cash at bank and in hand
Debt due within 1 year
Debt due after 1 year		 At 1
December
2019
£000
433
-
(600)
(167)		 Cash flows
£000
647
(56)
(344)
247		 At 30
November
2020
£000
1,080
(56)
(944)
80

25. RELATED PARTY TRANSACTIONS

Trustees' remuneration and expenses is detailed in note 10.

Trustees are able to make use of the accomodation at the National Centre when attending on business and usually provide a donation in respect of this. No Trustees were provided any nights accomidation the year (2019: eight/six).

Donations from trustees and related parties amounted to £7k during the year (2019: £5k).

Page 42