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2023-03-31-accounts

North Dev Hospice Tl North Devon Hospice Trustees Report 2022-2023 Rtylffj•r•d Clwlty No 2•6S54

Contents

ontents
1. Trustees Report
Our Appreciation 3
Our Mission and Strategic Objectives 7
Your Impact
What We Want To Achieve 18
Our Governance 18
Annual Financial Report 23
Disclosure of Information to Auditor 29
Statement of Trustee Responsibilities 29
2. North Devon Hospice Information 30
3. Auditors Report to the Trustees 32
4. Financial Statements
Consolidated Statement of Financial Activities 37
Consolidated and Company Balance Sheets 38
Consolidated Cash Flow Statement 39
Notes to Financial Statements 40

2

Our Appreciation

We believe your life is a story, and the ending matters. North Devon Hospice's mission is to provide outstanding care and support to the community of North Devon who are impacted by a life-limiting illness. We can only achieve this together with you. It is your individual donations, business support, fundraising events, lottery memberships, gifts in wills and trust grants that enable us to be there for all the family.

In choosing to support us you are in fact making sure that death is as dignified and pain-free as possible for thousands of people. On their behalf, thank you. Chief Executive's Review

In last year's report I wrote: "l do believe that the next 12 months will be more challenging than the last." This turned out to be true. 2022/23 saw a perfect storm for North Devon Hospice. Our costs went up, our income fell whilst at the same time the demand for our care increased. This is all reflected within the numbers that you will see in this report.

Increases in energy costs, fuel costs, food costs as well as salary increases to remain competitive in the employment market have all taken their toll on our bottom line. This has been compounded by a drop in income as we had to cancel our main fundraising event Nightwalk due to Queen Elizabeth's death as well as a sharp drop in donations given the current economic climate. We had also hoped to have made further progress with NHS Devon in financially recognising the substantial role played by our Hospice to Home team in the in the healthcare system. Whilst we took an active involvement in the NHS Devon's End of Life Care Commissioning review where there was acknowledgement of the importance of the service, this has not manifested itself into commissioning support. Therefore, this remains, charitably funded.

That said, we continue to utilise five-year financial scenario planning to be able to manage these storms and more than that, still ensure that not only does our care continue but that it remains responsive to the changing needs of our patients and families both now and in the future. Nothing personifies this more than the refurbishment of our bedded unit in Barnstaple. Designed with future patient needs in mind, the 7 bedded unit saw a full refurbishment which has enhanced the patient environment. The aim was to make it feel less clinical whilst enabling more services to be provided to patients and their loved ones. In addition, the changes will support us being able to care for more complex patients as well as creating a better working space for our staff. This was only made possible through careful financial planning and the support of many generous donors grant making organisations and philanthropic trusts.

In addition, our care teams continue to see very high caseloads of increasing complexity, as the population live longer but with multiple conditions that need to be managed at end of life. We continue to support our colleagues in the NHS where we are continually looking for opportunities to achieve better patient outcomes. The best example of this came during the winter pressures. We reached out to our colleagues in the South West Ambulance Trust to tell them that if they were to be called out to an end of life patient known to the hospice, then they should ring us first to see if we can bring the patient straight to our bedded unit or deploy our Hospice to Home team to keep the patient at

home rather than ending up in the Emergency Room at North Devon District Hospital.

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Of course, as ever, none of this could be achieved without our dedicated staff who even in the face of increasing demand, have never wavered in putting the patient first. Moving forward we will continue to positively engage with the community that we have the privilege to serve. In so doing harnessing their vital support to ensure that we get through the storm and continue to be there for all the family when they need us the most. Your life is a story and the ending matters.

Mr. St phen Roberts Chief Executive Office

5

Chair's Review

I am proud to be able to report how well the hospice has managed throughout the last 1 2 months under significant financial pressure and with increasing demands on the service. The provision of care and support to patients and their families has continued and grown, which is in line with our aim to be there for the people that need us at the time they need us.

You will see in this report that there have been a number of achievements and developments during the year.

I would like to take this opportunity to thank all the hospice staff who have continued to give their all and do an amazing job, often going over and above and treating everyone as an individual with their own hopes and needs. Thank you also to all the volunteers who continue to give the hospice many hours of support. It is great that post pandemic we are now able to get all the volunteers fully back in the various roles they play as the hospice would not be able to deliver the service and care it does without them.

The Board of Trustees continues to be committed to the hospice and we have been fortunate to recruit new Trustees in the last 12 months who compliment the skills of the board. This gives us a strong, multi skilled and dedicated board working alongside the Senior Management Team to maintain the success of the hospice now and for the future.

We have our 5 year strategy through to 2026 in place to help us focus on the priorities for the hospice, these include financial impact and working with NHS Devon on the need for commissioning/funding for some of our clinical services, fundraising opportunities, further development of patient care and staff wellbeing.

We can only do any of this with the support, donations and fundraising of the local community and you continue to do this year after year and we are so grateful. You make this all possible. Thank you.

Mrs. Sharon Bates

Chair of the Board of Trustees

Our Mission and Strategic Objectives

6

Charitable Mission

To provide outstanding care and support to the community of North Devon who are impacted by a life limiting illness.

Strategy

We have now completed year 3 of our 5 year strategy. It is pleasing to see that we have gained good momentum in seeking to achieve the objectives. In so doing we can be assured that ultimately North Devon Hospice is being successful and that we are able to provide the care and support that is needed by the community that we serve.

I. Be there for everyone who needs us by providing outstanding care

Key Impact in 2022/23:

2. Walk arm in arm with every healthcare partner who, in working with them, will enhance our patient care

Key Impact in 2022/23:

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bedded unit rather than hospital or seek support from our Hospice to Home team to keep the patient at home.

3. Enhance End of Life Care Across North Devon Through Education

Key Impact in 2022/2023:

We successfully recruited a new Clinical Practice Educator o We have commenced our external education courses which targets initially community nurses o We continue to support a record number of nursing students, trainee GP's and hospital doctors in completing placements on our bedded unit

4. Nurture Content, Engaged, Skilled & Fulfilled Staff

Key Impact in 2022/2023:

Having run the pilot on hybrid working for a year and following consultation with our staff, it is clear that this supports a good worldlife balance and as such will now be formally adopted. Therefore, our staff have the opportunity to work from home for maximum of 3 days a week where the service allows

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5. Embrace Our Volunteering Community Encourage You To Become Part Of It

Key Impact in 2022/23:

6. Embrace Technology To Enhance Our Care

Key Impact in 2022/23:

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7. Be Financially Stable To Continue To Be There For All The Family

Key Impact in 2022/23:

Key Impact in 2022/23:

The last year saw North Devon Hospice achieve the highest amount of media coverage in our history at both a local, national and international level. This was due to a combination of the coverage of Max Woosey's (A Boy In The Tent) reaching his final night in the tent after three years, Jade Kingdom's triathalon achievements and us articulating the impact of the cost of living crisis to the charity sector We have grown our social media followers by over 5k Our newsletter focussed heavily this year on care stories. As such we had a record donation response raising 1 5k

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Your Impact

Your Clinical Care

We have a clear mission: To provide outstanding care and support to the community of North Devon who are impacted by a life limiting illness. Each and every staff member and volunteer are driven to achieve this. In so doing, this year has seen some fantastic enhancements to our care which are shared in more detail below. With the demands on the NHS at a precedented level, we have seen our role in supporting the wider system also increase. We continue to play our role in ensuring that end of life patients do not unnecessarily end up being admitted into hospital and indeed can be safely discharged home again as soon as possible. Good examples of this has been the patient pathway we are developing with South West Ambulance Service Trust (SWAST). During the recent winter pressures, we reached out to SWAST to suggest that if they respond to a call out where the patient is end of life and known to the hospice, then ring us first. In so doing the patient could then be potentially transferred directly to our bedded unit or we could deploy our Hospice to Home team to support the patient to remain at home.

Hospice Services Provision 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23
Number of new referrals:
1,179
1 ,395
1,449
1 ,439
1,144
1,243
1,431

Your Bedded Unit

This last year saw us close the bedded unit for only the second time in it's seventeen year history. This planned closure enabled us to refurbish the entire unit. Whilst recognising that this is a specialised medical unit, we do our utmost to ensure that the environment does not feel clinical, more boutique hotel if we can. To this extent, this refurbishment enabled us to achieve this and more:

New LED lighting that allow for softer zonal lighting controlled remotely New built in storage which allow for more of the patient's personal possessions to be stored and displayed. The key feature though is that all supporting medical equipment such as hoists and oxygen supply is stored behind the units Additional office space for nurses

Training room for nurses

The closure also enabled us to upskill the staff to provide more services on the bedded unit. In so doing we can now avoid the need to transfer patients from the hospice to the hospital and back again for certain treatments such as IV anti-biotics.

Thanks to your support we have cared for 92 people (2021 /22; 80) this year.

Your Community Specialist Palliative Care Nursing

Our clinical nurse specialists (CNS) supported 1,132 (1,043 in 2021/22) people to die where they wanted; in their own home. Covering one of the largest rural areas in England, geography was not and never is a factor to access our care with our nurses travelling over 70,000 miles to make 2,663 (2,522 in 2021 /22) visits to patients.

As specialists in end of life care our clinical nurse specialists also have a crucial role in supporting other healthcare professionals in providing quality end of life care across North Devon. In so doing the team responded to nearly 3,000 calls for specialist input from them.

The year saw the team continue to hold an unprecedented high caseload. This is even after last year's investment into the team of an additional CNS.

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1,132

Number of patients supported by our CNS team

Your Hospice to Home

Hospice to Home provided 3,244 (2021/22 3, 1 84) hours in support of our patients and their families 24hrs a day, 365 days of the year.

The Hospice to Home team continues to be heavily relied upon by other healthcare teams to ensure that patients can avoid an unnecessary hospital admission, expedite discharge home after a hospital stay as well as the ultimate goal of fulfilling patient's wishes to die at home. Where this happens the ramifications of this are huge for both the patient and their family.

The service is designed and best placed to provide rapid response care rather than planned care in the form of Continuing Health Care packages. It is in the scenario of a crisis or rapid response that the team has the most impact. This is particularly true when working with our colleagues in the Rapid Intervention Centre, SWAST or indeed Pathfinder team at North Devon District Hospital. For this to be sustained, we need commissioning support from the Devon Integrated Care Board.

66 Cannot speak hlghly enough of the nurses who Came daily to look after my bn)Ih•r. They were all fantastic. worth thelr weight in 9old! You aro all WOfKlerlul. 99 14

Your Long House

This year saw the full return of all services being held at the Long House. This included:

counselling

In addition, we continue to host the bi monthly Gold Standard Framework meetings at The Long House with our local GP practice as well as the local community nursing team. Other professionals actually coming into the building and experiencing The Long House environment and therapy rooms has definitely increased awareness of what the hospice can offer to palliative patients and their families.

Your Supportive Care

When a patient is diagnosed with a terminal illness, it is not just their life that changes forever but also their families. The emotional journey that our patients and their families go on sees many peaks and troughs. It is through walking shoulder to shoulder with them during these times that we truly live our motto of "being there for all the family"

This resonates in every aspect of this service, with taster sessions for all family members as well as support targeted to younger family members through a programme called "At The Moment."

With the retirement of two longstanding members of the team but the successful appointment of a new head of the service from within the team, Supportive Care have coped admirably with a very large case load. In 2022/23 the team supported I ,026 people (939 in 2021/22). This is in the face of a substantial increase in referrals to the team as well, 1 ,43 1 in 2022/23 (1,243 in 2022/23).

Your Clinical Education

Palliative medicine is a specialism. End of life care, whilst everyone's business in the healthcare system, is also a specialism. Therefore, this year it was good news that we successfully recruited a new Clinical Practice Educator who has spent most of their career as a District Nurse. With this post fulfilled we have now been able to invite external healthcare partners onto our courses. We have seen district nurses in particular take up this offer. In addition we continue to increase the number of nursing degree level, T-level and medical school placements at the hospice. 2023 will see us now formalise our external education programme.

Your Feedback

To provide continued outstanding care to the patients and families that we are privileged to look after, we must ensure that our care meets the needs of the people we serve. We are here for you and only because of you. To ensure that our care is responsive to the ever changing needs of our patients and their families, we place significant emphasis on engaging with our beneficiaries to seek feedback. In so doing we ensure that there is continued improvement in everything that we do. To ensure that this feedback is independent and confidential, we utilise a third party platform called iwantgreatcare.org. Through this we know that in the 2022/23 North Devon Hospice received 45 reviews and have an overall maximum rating of 5 stars. What was particularly satisfying this year was to be awarded a Certificate of Excellence by iwantgreatcare.org in recognition of our outstanding patient care.

www.iwantgreatcare.org

Certificate of Excellence Winner

1 5

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Our Volunteers

As ever, without the time that our volunteers give to the hospice we would not be able to provide the level of service that we provide to patients, carers and family members. With Covid in the rear-view mirror, it was a particularly busy year recruitment wise with over 1 00 new volunteers joining us in roles across the organisation ranging from gardening to patient facing, administration to retail.

What was particularly satisfying was to see two of our longer serving volunteers enjoy their day at the Queen's Garden Party in the summer of 2022 to celebrate the honour of winning the Queen's Award for Volunteering. We were also pleased to see that another of our long serving volunteers was recognised for her outstanding contribution. Audrey Isaac was awarded the League of Mercy Award at Mansion House by kind permission of the Rt Hon The Lord Mayor of London.

Our volunteer numbers now sit just under 400 which is back to pre-Covid levels. There is not a single facet of North Devon Hospice that can function without our volunteers, as such, we are indebted to their generosity, dedication and passion.

Our Staff

The outstanding care that our patients and their families receive is only made possible by our staff. Therefore, as in every year, we have proactively looked to support, engage, listen, develop and nurture our teams. In so doing make North Devon Hospice a happy, and fulfilling place to work. With this in mind in 2022/23 we:

What we want to achieve

2022/23 saw us enter the third year of our five year strategy which sets out to achieve the following objectives:

In the next 12 months our key priorities will be:

Work with NHS Devon to get Hospice to Home commissioned

  1. Roll out Schwartz Rounds which is a structured forum where all staff, clinical and non-clinical regularly come together to discuss the emotional and social aspects of working in an end of life environment

  2. Increase income from our Retail division

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  1. Develop a new website

  2. Diversify our income

Our Governance

As we are only able to provide our care thanks to the community that we serve, we are

morally as well as regulatory duty bound to ensure that every single pound raised is used in the most effective way. We need to ensure that the organisation, to continue to exist, to continue to thrive and to continue to be there for all the family utilises all of our resources in the most impactful way. Effective Governance is at the heart of this. Overall responsibility for our governance lies with the 12 trustees who, alongside the Senior Management team of 4, made up of the Chief Executive, Director of Care, Director of Finance, Director of Human Resources & Organisational Development, make up the Board. The Board of Trustees meets 4 times a year. At each board meeting the organisation's strategic objectives, annual budget and top risks are formally reviewed, challenged and agreed. In addition, the Chief Executive and the Senior Management Team report on performance, compliance, risks and opportunities in the hospice. In support of

effective governance there are 4 sub-committees who in turn are supported by two working groups. This is structured as follows:

North Devon Hospice Governance Structure

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we are sustainable financially and as efficient and as effective as an organisation as possible. To give this the appropriate level of focus this committee ensures that North Devon Hospice is maximising its income generation opportunities and remains as innovative as possible.

To further support these committees, working groups are in place to ensure a more detailed scrutiny of key areas which includes:

Risk Management

Effective risk management empowers North Devon Hospice to thrive and succeed as an organisation.

To achieve this, North Devon Hospice's risk management seeks to ensure that the entire risk profile of the organisation (both strategic as well as operational) is effectively identified and where possible managed.

North Devon Hospice defines risk as: "The threat that an event, action or failure to act will adversely affect North Devon Hospice's ability to achieve its objective, capture opportunities or to deliver its aims to the required standards"

North Devon Hospice defines risk management as: "The proactive identification, evaluation, control and continued monitoring of those risks that threaten the assets, people, patients or reputation of North Devon Hospice"

North Devon Hospice has in a place a Risk Committee, Chaired by the Chief Executive and includes the Director of Finance, Head of Facilities as well as the Quality Lead. This committee meets throughout the year to review the departmental risk registers and the strategic risk register before then being able to create the North Devon Hospice Top 5 Risks Register. A tailored risk assessment criteria which allows for risks to be scored across several criteria such as reputational impact, financial impact and service interruption is used to prioritise the risks identified. The Current Top 5 Risks to the success of North Devon Hospice's are:

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Review

3. Additional fundraising events
planned
for
financial
year
2023/2024
4. To increase reach and increase
digital presence
1. EOL
Funding
review
with
commissioners
2. Continued pressure on HUK to
Inability to secure cover future NHS pension costs.
required funding 1. Proactive recruitment campaign
for Palliative Care Consultant
without responsibility as Medical
No Palliative
Care
Director
Consultant 2. Recruitment commenced for a
Key Risk Action Locum post as well
3. Full Page advert placed in
Plan Hospice
UK Conference brochure

1.Devon ICB EOL Commissioning

It is against these top risks that the Board of Trustees are able to establish a clear line of sight on the levels the organisation should hold within its risk reserves.

Senior Management Team Remuneration

The Board of Trustees are responsible for setting remuneration levels for the charity's senior staff. The key objective for North Devon Hospice is to ensure that our approach is to offer fair pay to attract and keep appropriately qualified staff to lead, manage, support and/or deliver our objectives. In deciding Senior Management Team remuneration, as a Board of Trustees we have considered:

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• The types of skills, experiences and competencies that North Devon Hospice needs from its Senior Management team, the specific scope of these roles and the link to pay • The charity's strategic plan and how the implementation of this plan may affect the number of senior staff the charity needs to employ or recruit and the nature of these roles

• The charity's ability to pay. This includes the cost to the charity of raising pay, whether it is sustainable, how appropriate the level of pay is, and any pay increase, is in the context of the charity, as measured against the needs of its charitable purposes and beneficiaries • The board's assessment of the charity's performance and the Senior Management Team's performance against expectations, in both short and long term

• Appropriate available information on pay policies and practices in other organisations that can inform the decision on whether a level of pay is fair and reasonable. This has been achieved through using Association of Chief Executives of Voluntary Organisations, as well as National Council for Voluntary Organisations as well as looking at other hospices, charitable organisations and the private sector.

In addition to the above and in accordance with the Statement of Recommended Practice (SORP) North Devon Hospice, within our audited and published annual report and accounts, discloses the number of employees whose remuneration exceeds {60,000.

Therefore with a Senior Management Team pay scale established and with the performance of the Senior Management Team formally reviewed on an annual basis against set objectives, the Trustees of North Devon Hospice are satisfied that there is appropriate, robust, transparent and fair remuneration in place for its Senior Management Team. This is particularly true this year following the organisation wide pay benchmarking exercise that was carried out in support of our own Pay Framework. Which led to the roll out a new spot salary model. The Senior Management Team's pay formed part of this revi

Annual Financial Report

23

position and that we have both a sufficient risk based reserve and designated reserves to ensure we achieve our strategic objectives

Income

Continuing Healthcare 2% Fundraising and donations 14%

24

----- Start of picture text -----
Integrated
Care Board
20%
Investments and other
4%
Retail
25%
Lottery
11%
----- End of picture text -----

----- Start of picture text -----
Legacies and in memories gifts
24%
----- End of picture text -----

Expenditure

25

----- Start of picture text -----
Education
1%
Cost of raising
funds
37%
Service delivery, clinical and supportive
care
62%
Investments and Reserves Policy
----- End of picture text -----

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tests, but then subsequently fails would be sold within the shortest reasonable period of time

I. Identifying any reserves which are restricted

Restricted funds can only be used for the purposes specified. These restrictions can be created because of the wording of a public appeal, through the terms of an award granted or the use may be specified by the donor.

2. Identifying functional assets

The trustees consider the fixed assets to be essential to the delivery of the charity's aims therefore the cost of such assets can be designated and excluded from the calculation of reserves.

3. Understanding the impact of risk

When setting the level of reserves the trustees look at the risks and uncertainties facing the charity. This is done by reviewing the top risks to the organisation and attributing a value to them. In doing this the trustees consider the different types of income stream, any vulnerability around sudden or unforeseen decline in a particular income source. Furthermore, they consider the agreement in place for NHS funding and whether income is likely to be affected by the general economic situation, as well as the strength in relationship between the hospice, its donors and financial supporters. It then looks at its cost base and considers what risks there are to increased costs in working, for example is there a skills shortage in a particular area or will changes in demographic put a greater burden on services, what are the changing needs of our beneficiaries, and are we meeting demand.

27

The trustees believe that the risk based reserve set last year of 2.85 million is still an appropriate level, for normal risks facing the organisation.

Restricted reserves

The total value of restricted reserves is {37k as of 3 1st March 2023 (2021/22: {81 k) which is identified as follows:

Designated Reserves

The trustees have identified the need for the following designated reserves:

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of funds to support Hospice to Home this year. This leaves a fund of El .2 million to provide this service, without any further growth in the team, over the next 3 years

General unrestricted, undesignated funds amounted to {671 ,486 (2022: {746,405).

Statement as to disclosure of information to auditors

In so far as the trustees are aware:

Statement of Trustees Responsibilities

The trustees are responsible for preparing the annual report and the financial statements in accordance with applicable law and United Kingdom 'Generally Accepted Accounting Practice.' Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the surplus or deficit of the charity for that period. In preparing these financial statements, the trustees are required to: Select suitable accounting policies and then apply them consistently

29

The trustees are responsible for keeping proper accounting records, which disclose with reasonable accuracy at any time, the financial position of the charity, and which enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. On behalf of the board,

Mrs. Sharon Bates

Chair of Trustees

2.North Devon

Hospice

Information

Status: The Charity's governing document is its Articles of Association

Mrs. Sharon Bates
Chair of Trustees
2.North Devon
Hospice
Information		 Mrs. Sharon Bates
Chair of Trustees
2.North Devon
Hospice
Information
Status: The Charity's governing document is its Articles of Association
Chari number 286554
Company registration
number		 1696150
Registered office North Devon Hospice
Deer Park Road
Newport
Barnstaple
Devon
EX32 OHU
The Board of Trustees Sharon
Bates;
Chair
Mary Brooks
Dave Cottingham
Kate Cox
Rachel Dafforn, Treasurer (appointed Ist
August 2022)
Glenys Gray (appointed 22ndMarch 2023)
Helen Keddie (appointed 29thNovember
2022)
Rachel Loosemore
Lisa McCormack
Zara Svensson
Kevin Underwood
Jennifer Wilmott
Rob Withecombe
Chief Executive &
Secreta		 Stephen Roberts

30

Senior Management Josephine Dedes, Director of
Care
Samantha Husband, Director of Finance
Cate
Oliver,
Director
of
Human
Resources
and
Organisational
Development
Auditors PKF Francis Clark
Blackbrook
Gate
I
Blackbrook Business Park
Taunton TAI 2PX
Bankers National Westminster Bank
41 High Street
Barnstaple
Devon
EX31 IDI-I
Tozers LLP
Broadwalk House
Southernhay West
Exeter
EXI Il-JA
Davisons Financial Management
Lime Court
Pathfields Business Park
South Molton North
Devon
EX36 3LH
Newton Investment Management
1 60 Queen Victoria Street
London
EC4V 4LA
Countess of Arran MBE DL
Solicitors Tozers LLP
Broadwalk House
Southernhay West
Exeter
EXI Il-JA
Pension advisors Davisons Financial Management
Lime Court
Pathfields Business Park
South Molton North
Devon
EX36 3LH
Stockbrokers Newton Investment Management
1 60 Queen Victoria Street
London
EC4V 4LA
Patron Countess of Arran MBE DL

31

Vice Presidents John Brend
Geoffrey Cox QC
Gavyn Davies OBE
Sir Nick Harvey
Philip Jewell
Ron Ley MBE
David Morgan Mark
Parkhouse DL
John Riley
The Hon. John Rous DL
Lady Stucley
David Whitely

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3. Independent Auditor's Report to the Members of North Devon Hospice (Company Limited by Guarantee)

Opinion

We have audited the financial statements of North Devon Hospice (the 'Charitable Company') for the year ended 3 1 March 2023, which comprise the Consolidated Statement of Financial Activities, the Group and Company Balance Sheets, the Consolidated Cash Flow Statement, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 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:

give a true and fair view of the state of the Group and Charitable Company's affairs as at 3 1 March 2023 and of the Group's incoming resources and application of resources, including income and expenditure, for the year then ended; have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and have been prepared in accordance with the requirements of the Companies Act 2006.

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 Charitable Company 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 the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate and that the trustees have disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

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 auditor's report thereon. Our opinion on the financial statements does not cover the other

33

3. Independent Auditor's Report to the Members of North Devon Hospice (Company

Limited by Guarantee)

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.

Opinion on other matter prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

the information given in the Trustees' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and the Trustees' Report has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the 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 where the Companies Act 2006 requires us to report to you if, in our opinion:

adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or the financial statements are not in agreement with the accounting records and returns; or

certain disclosures of trustees' remuneration specified by law are not made; or we have not received all the information and explanations we require for our audit;

the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies exemption in preparing the strategic report.

Responsibilities of Trustees

As explained more fully in the Statement of Trustees' Responsibilities set out on page 30, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees

34

3. Independent Auditor's Report to the Members of North Devon Hospice (Company

Limited by Guarantee)

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 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 directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAS (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

As part of our audit planning we obtained an understanding of the legal and regulatory framework that is applicable to the Group. We gained an understanding of the sector in which the Group operates as part of this assessment to identify the key laws and regulations affecting the Group. The regulatory environment was discussed with the relevant individuals responsible for compliance and the Group's website was reviewed for indication of any regulations and certification in place. The key regulations we identified were health and safety regulations, CQC regulations and The General Data Protection Regulation ("GDPR"). We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the

Companies Act 2006 and the Charities: Statement of Recommended Practice (SORP).

We discussed with management how the compliance with these laws and regulations in monitored and discussed policies and procedures in place. As part of our planning procedures, we assessed the risk of any non-compliance with laws and regulations on the Group's ability to continue operating and the risk of material misstatement to the accounts. We also evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements. Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Our procedures involved the following:

35

3. Independent Auditor's Report to the Members of North Devon Hospice (Company Limited by Guarantee)

We assessed the susceptibility of the financial statements to material misstatement through management override or fraud, including in relation to cash income and expenditure, and obtained an understanding of the controls in place to mitigate the risk of fraud. We also discussed with management whether there had been any instances of known or alleged fraud, of which there were none. Based upon our understanding we designed and conducted audit procedures including:

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. This risk increases the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements as we are less likely to become aware of instances of non-compliance. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment, collusion, omission or misrepresentation.

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

Use of our report

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

36

3. Independent Auditor's Report to the Members of North Devon Hospice (Company Limited by Guarantee)

Nicholas Farrant BA MSc FCA (Senior Statutory Auditor) PKF FRANCIS CLARK

Chartered Accountants and Statutory Auditor Blackbrook Gate I Blackbrook Business Park Taunton Somerset TAI 2PX Date:

37

4. Financial Statements

North Devon Hospice (Company Limited by Guarantee) Consolidated Statement of Financial Activities

Including Consolidated Income and Expenditure Account For the Year Ended 3 1 March 2023

Unrestricted Unrestricted Restricted Total Unrestricted Restricted Total
Funds Funds Funds Funds Funds Funds
2023 2023 2023 2022 2022 2022
Note
INCOME
Legacies & In Memoriam Donations I ,409, 1 68 40,000 I ,449, 168
Fundraising & Donations 753,863 56,577 810,440 782,637 39, 82 1 ,767
Gifts in Kind 47,
 47,045 36,345 36,345
Charitable activities
Income from supporting Direct
Patient Care
Educational Services 12,684 12,500 25, 184 4, 130 4, 130
Other trading activities 2, 148,984
Investments 178,200 178,200 137,570 1 37,570
Other 33,76 1 6, 1 90 39,95 1 20,283 389,0 1 5 409,298
TOTAL INCOME 7 5,909,678 1 15,267 6,024,945 5,9 1 1,453 428, 145 6,339,598
EXPENDITURE
Raising funds
Charitable activities		 2,433,897 2,433,897 2,240,529 2,240,529
Supportive Care 550,232 22,304 572,536 542,636 10,098 552,734
Hospice to Home 572,478 8,839 581,317 435,826 102,299 538, 125
Community 679,327 9,000 688,327 499,884 107,390 607,274
In Patient Unit 10,839 43,636 2,254,475 217,290 2,06 ,360
Education 63,526 63,526 56,959 56,959
TOTAL EXPENDITURE 8 10,299 83,779 6,594,078 19,904 437,077
NET INCOME /
(EXPENDITURE) BEFORE
NET GAINS/ (LOSSES)
ON INVESTMENTS (600,621) 3 1 (569, 1 33) 29 1 ,549 (8,932) 282,6 1 7
,488
Net gains / (losses) on investments (220,826)
(220,826) 301 ,587 301 ,587
NET INCOME /
(EXPENDITURE)

38

4. Financial Statements

4.Financial Stat 4.Financial Stat ement s s s
North Devon Hospice (Company Limited by Guarantee)
FOR THE YEAR (82 1 ,447) 3 1 (789,959) 593,136 (8,932) 584,204
,488
Transfers between funds 27 75,054 (75,054) 36,827 (36,827)
NET MOVEMENTS IN (746,393) (43,566) (789,959) 629,963 (45,759) 584,204
FUNDS
RECONCILIATION OF
FUNDS
FUNDS BROUGHT 14,24 1 ,48 1
FORWARD 27 80,657 126,416
FUNDS CARRIED 27 37,091 14,24 1 80,657 14,322,
138
FORWARD

The notes on pages 40 to 59 form an integral part of these financial statements.

Consolidated and Charity Balance Sheet For the Year Ended 3 1 March 2023

Group Group Charity Charity Charity
Note 2023 2022 2023 2022
FIXED ASSETS
Intangible assets 15 9,242 21,573 9,242 21,573
Tangible assets 16 3,476, 156 3,476, 156 3,308,296
Investments 19 7,275,335 6,696, 161 7,360,909
1 0, 1 1 1,604
CURRENT ASSETS
Stock 20 8,520
12,530
Debtors 21
18,368 Cash at bank and in hand 222,201		 ,448
3,334,758 16
LIABILITIES
Creditors: Amounts falling due within one year 23 (560,791) (45 1 , 1 32) (6 1 2,992) (507,4 1 6)

39

4. Financial Statements

4.Financial Statements 4.Financial Statements 4.Financial Statements 4.Financial Statements
North Devon Hospice (Company Limited by Guarantee)
NET CURRENT ASSETS 2,773,967 4,298,629 2,687,736 12,400
TOTAL ASSETS LESS CURRENT
LIABILITIES
PROVISIONS 25 2,521 2,52 1
NET ASSETS 1 3,532, 179 1 4,322, 1 38
FUNDS
Unrestricted Funds
General funds 671,486 746,405 673,350 748,271
Investment revaluation reserve 27
Designated funds 27
Restricted Funds 27 37,091 80,657 37,091 80,657
TOTAL FUNDS 1 3,532, 179 14,322, 138

The profit of the charity for the year ended 31 March 2023 was deficit of {789,959.

The financial statements were approved by the trustees on

and signed on their behalf by:

Mrs. Sharon Bates Chair of Trustees

Company Registration Number: 1 696 1 50

The notes on pages 40 to 59 form an integral part of these financial statements.

Consolidated Statement of Cash Flows

For the Year Ended 3 1 March 2023

Note 2023 2022
Cash flows from operating activities
Net income/(expenditure) for the year (789,959) 584,204
Adjustments to cash flows from non-cash items
Depreciation charge 9 242,423 2 15,844
Amortisation charge 9 1 2,330 14,440
40

4. Financial Statements

North Devon Hospice (Company Limited by Guarantee)

(Gains)/loss on investments 220,826 (30 1 ,587)
Dividends and interest from investments (178,200) (137,570)
Loss/(profit) on the disposal of fixed assets 9 195
(492,580) 375,526
Working capital adjustments
(Increase)/decrease in stock 20 4,010 1 9,234
(Increase)/Decrease in debtors 21 l, 123,000 15,125
Increase/(decrease) in creditors 23 109,659 (30,704)
Net cash flows from operating activities 744,089 379,181
Cash flows from investing activities
Dividends and Interest from investments 178,200 1 37,570
Payments to acquire intangible fixed assets
Payments to acquire tangible fixed assets Proceeds (153,759)
from sale of investments
Payments into investments (800,000) (750,000)
Net cash flows from investing activities (766, 189)
Net decrease in cash and cash equivalents (287,994) (387,008)
Cash and cash equivalents at I April 22 1 2,720 2,599,728
Cash and cash equivalents at 31 March 22 12,720

The notes on pages 40 to 59 form an integral part of these financial statements.

41

4. Financial Statements

North Devon Hospice (Company Limited by Guarantee) Notes to the Accounts

For the Year Ended March 2023

3 1

I. Company status

The company is a registered charity and a company limited by guarantee incorporated in England and Wales, without share capital. The address of the registered office, and main trading address, is North Devon Hospice, Deer Park Road, Newport, Barnstaple, Devon, EX32 OHU. The guarantors are the members to the extent of Ll each. There were 38 (2022: 38) members at the balance sheet date.

2. Accounting policies

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

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

Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy or note.

The charitable company meets the definition of a public benefit entity under FRS 102.

The accounts are presented in Sterling which is also the functional currency of the group.

Group financial statements

The financial statements consolidate the results of the charitable company and its wholly owned subsidiary, NDH Ventures Ltd., on a line-by-line basis. A separate Statement of Financial Activities and Income and Expenditure Account for the Charity has not been presented because the Charity has taken advantage of the exemption afforded by section 408 of the Companies Act 2006.

Income

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

Income from government and other grants, whether 'capital' grants or 'revenue' grants, is recognised when the group 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.

For legacies, entitlement is taken as the earlier of the date on which either: the charity is aware that probate has been granted, the estate has been finalised and notification has been made by the executor(s) to the charity that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the charity has been notified by the executor's intention

42

4. Financial Statements

North Devon Hospice (Company Limited by Guarantee) Notes to the Accounts

For the Year Ended 3 1 March 2023

to make a distribution. Where legacies have been notified to the charity, or the charity is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is a treated as a contingent assets and disclosed if material.

  1. Accounting policies (continued)

Income received in advance of the provision of a specified service is deferred until the criteria for income recognition are met.

Donations of gifts, services and facilities

Donated professional services and donated facilities are recognised as income when the charity has control over the item or received the service, any conditions associated with the donation have been met, the receipt of economic benefit from the use by the charity of the item is probably and that economic benefit can be measured reliably. In accordance with the Charities SORP (FRS 102), volunteer time is not recognised so refer to the Trustees' annual report for more information about their contribution.

On receipt, donated gifts, 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.

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.

Fund accounting

Restricted funds are to be used for specific purposes as laid down by the donor. Expenditure which meets these criteria is charged to the fund.

Unrestricted funds are donations and other incoming resources received or generated for the charitable 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 note 27.

Expenditure

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. Expenditure is classified under the following activity headings:

43

4. Financial Statements

North Devon Hospice (Company Limited by Guarantee) Notes to the Accounts

For the Year Ended 3 1 March 2023

  1. Accounting policies (continued)

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

Allocation of support costs

Resources expended are allocated to the particular charitable activity where the cost relates directly to that activity. However, other support costs not directly related are 100% allocated to charitable activities based on a combination of headcount, space and discrete charges.

Operating leases

Rentals paid under operating leases are charged to the statement of financial activities on a straight line basis over the term of the lease.

Intangible fixed assets and amortisation

Intangible fixed assets, consisting of software, are capitalised at purchase cost and amortised over their useful economic lives. Amortisation costs are allocated to activities on which the basis of the use of the related assets in those activities. Assets are reviewed for impairment if circumstances indicate that their carrying value may exceed their realisable value and value in use.

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

Software 5 years

Tangible fixed assets and depreciation

Individual items purchased below {500 are not normally considered as capital expense unless its useful life is greater than 4 years. Depreciation costs are allocated to activities on the basis of the use of the related assets in those activities. Assets are reviewed for impairment if circumstances indicate their carrying value may exceed their realisable value and value in use.

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:

Freehold land Not depreciated Freehold building 50 years straight line Leasehold property improvements 5-20 years straight line Fixtures and fittings 5 years straight line Computer equipment 5 years straight line Motor vehicles 5 years straight line

44

4. Financial Statements

North Devon Hospice (Company Limited by Guarantee) Notes to the Accounts

For the Year Ended 3 1 March 2023

2. Accounting policies (continued)

Listed investments

Investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing quoted market price. Any change in fair value will be recognised in the statement of the financial activities and any excess of fair value over the historic cost of the investments will be shown as a fair value reserve in the balance sheet. Investment gains and losses, whether realised or unrealised, are combined and shown in the heading "Net gains/(losses) on investments" in the statement of financial activities. The charity does not acquire put options, derivatives or other complex financial instruments.

The historic cost of investments is calculated on a FIFO basis.

Investments in subsidiaries

Investments in subsidiaries are initially recorded at cost.

Stock

Stock is stated at the lower of cost and net realisable value. In general, cost is determined on a 'first in, first out' basis and includes transport and handling costs. Net realisable value is the price at which stocks can be sold in the normal course of business after allowing for the costs of realisation. Provision is made where necessary for obsolete, slow moving and defective stocks. Donated items of stock, held for distribution or resale, are not valued as the charity would not otherwise have bought them.

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 the deposit or similar account. Cash balances exclude any funds held on behalf of service users.

Pension costs

The group operates a defined contribution pension scheme and contributes into two defined benefit pension schemes. Contributions into the defined contribution scheme are recognised in the statement of financial activities in the period in which they become payable in accordance with the rules of the scheme. Defined benefit pension funds have been accounted for as defined contribution schemes since these are a state plan and a multi-employer scheme, and the group is unable to identify its share of the underlying assets or liabilities of these funds.

3 1

Financial instruments

45

4. Financial Statements

North Devon Hospice (Company Limited by Guarantee) Notes to the Accounts

For the Year Ended March 2023

  1. Accounting policies (continued)

The group only has financial assets and financial liabilities that qualify as basic financial instruments, being investments, trade debtors and trade creditors. Basic financial instruments are initially recognised at transaction value and are subsequently measured at their settlement value. Any losses arising from impairment ('doubtful debts') are recognised in the statement of financial activities.

Critical accounting judgements and key sources of estimation uncertainty

In the application of the group's accounting policies, which are described above, the Trustees are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. 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 following are the critical judgements and estimates that the trustees have made in the process of applying the group's accounting policies and that have the most significant effect on the amounts recognised in the financial statements.

Provision is made against specific trade debtors where recoverability is considered doubtful.

Legacy income which is recognisable under the income recognition policy, but has not yet been received, is provided for as accrued income until paid. The accrued income is provided at the level estimated within Probate documentation, less low level provisions for solicitor costs etc.

Key management personnel for the purposes of disclosure are considered to be the trustees and senior management team. The trustees are not remunerated.

The Trustees are satisfied, having considered the current financial position and performance of the charity, that the going concern assessment (which is a critical accounting judgement) remains appropriate. In making this assessment, the Trustees have sensitised their financial forecasts and cash flow projections for the next 12 months (from the date of approval of these financial statements) to take account of reasonably possible changes in funding and income levels, inflationary pressures and increases in utilities, in order to determine when, and to what extent any cost management measures may need to be implemented.

3 1

  1. Income from donations, gifts and legacies

Unrestricted Restricted 2023 2022

46

4. Financial Statements

North Devon Hospice (Company Limited by Guarantee) Notes to the Accounts

For the Year Ended March 2023

Legacies & In Memoriam Donations I ,409, 1 68 40,000 I ,449, 68
Fundraising & Donations 753,863 56,577 810,440 821,767
Gifts in Kind 47,045 47,045 36,345
2,483,382

Income from donations, gifts and legacies is {2,306,653 (2022: 2,483,382) of which Q,210,076 (2022: 2,444,252) is unrestricted and {96,577 (2022: E 39, 1 30) is restricted.

4. Income from charitable activities

Unrestricted Restricted 2023 2022
ICB Grant l, 1 97,704 l, 197,704
CHC Funding 1 28,269 1 28,269 129,1 10
Sub-total for Income supporting Direct Patient Care
Educational Training 12,684 1 2,500 25, 1 84 4, 1 30
Total income from charitable activities

Income from charitable activities is El ,35 1 , 1 57 (2022: E I ,368,586) of which El ,338,657 (2022: El ,386,586) is unrestricted and El 2,500 (2022: {nil) is restricted.

5. Income from other trading activities

Unrestricted Restricted 2023 2022
Shops & Monopoly I
14
Lottery 645,340 645,340 647, 1 12
Business Grants 37,336

Income from charitable activities is Q, 148,984 (2022: El of which Q, 148,984 (2022: I is unrestricted and {nil (2022: {nil) is restricted.

47

4. Financial Statements

North Devon Hospice (Company Limited by Guarantee) Notes to the Accounts

For the Year Ended 3 1 March 2023

  1. Income from investments
Unrestricted Restricted 2023 2022
Dividends 1 6 1,04 1 161 ,041 1 35,45 1
Deposit Interest 1 7, 159 17,1 59 19
1 78,200 178,200 1 37,570

Income from investments is El 78,200 (2022: El 37,570) of which El 78,200 (2022: El 37,570) is unrestricted and {nil (2022: {nil) is restricted.

7. Other Income

Other Income
Unrestricted Restricted 2023 2022
Government Covid Support 389,0 1 5
Disposal of Assets (195)
Other 33,76 1 6,190 39,951 20,478
33,76 1 6,190 35,95 1 409,298

Income from investments is {35,95 1 (2022: {409,298) of which {33,761 (2022: {20,283) is unrestricted and {6, 1 90 (2022: {389,015) is restricted.

48

9. Net incoming resources for the year
This is stated after charging / crediting: 2022
2023
Amortisation 1 2,330 14,440
Depreciation 242,423 2 1 5,844
Loss/(profit) on disposal of fixed assets 195
Operating lease rentals:
Property 198,146 194,297
Other 40,003 37,725
10. Auditor's remuneration
2023 2022
The analysis of auditor's remuneration is as follows:
Audit fees 1 1,615 1 1,300
Accountancy services I ,485 I ,500

4. Financial Statements

North Devon Hospice (Company Limited by Guarantee) Notes to the Accounts

For the Year Ended 3 1 March 2023


Notes to the Accounts
Forthe Year Ended3 1March2023
Tax compliance services 600 600
13,700 1 3,400

Il. Analysis of staff costs, trustee remuneration and expenses, and the cost of key management personnel

personnel
2023 2022
Salaries and wages
Employer's National Insurance 372, 157 328,044
Employer's contribution to defined contribution pension schemes 259,212 241 ,981
4,723,648

The following number of employees received employee benefits (excluding pension costs) during the year between:

2023 2022
{60,000 - {69,999 3 3
{70,000 - {79,999 2 {80,000 - {89,999

The total employee benefits including pension contributions of the key management personnel were {322,888 (2022: {303,814).

The charity trustees were not paid, or received any other benefits, from employment with the charity in the year (2022: {nil). No charity trustee received payment for professional or other services supplied to the charity (2022: [nil).

Trustees' expenses were {nil in both the current and prior year.

50

Financial Statements

North Devon Hospice (Company Limited by Guarantee) Notes to the Accounts

For the Year Ended 3 1 March 2023

4,

12. Staff numbers

The average number of employees was:

Average FTE Average FTE
2023 2023 2022 2022
No. No. No. No.
Fundraising Activities 51 38 50 38
Direct Care 82 59 80 58
Education 2
NDH Ventures
Support 42 33 44 34
178 132 176 1 32

13. Related party transactions

There are no related party transactions to disclose for 2023 (2022: none).

There are no donations from related parties which are outside the normal course of business and no restricted donations from related parties.

14. Taxation status

The charity is exempt from taxation in respect of income or capital gains received within categories covered by Part I I Chapter 3 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1 992, to the extent that such income or gains are applied exclusively to charitable purposes. The charity's trading subsidiary NDH Ventures Limited gift aids available profits to the parent charity. Its charge to corporation and deferred tax in the year was {nil (2022: {nil).

1 5. Intangible fixed assets

Group and company

Group and company
Software Total
Cost
As at I April 2022 222,8 1 1 222,81 1
Disposals (46,063) (46,063)
As at 3 1 March 2023 176,748 1 76,748
51

4. Financial Statements

North Devon Hospice (Company Limited by Guarantee) Notes to the Accounts

For the Year Ended 3 1 March 2023

Depreciation


Notes to the Accounts
Forthe Year Ended3 1March2023
Depreciation
As at I April 2021 20 1 ,239 201,239
Charge for the Year 1 2,330 1 2,330
Disposals (46,063) (46,063)
As at 3 1 March 2022 167,506 167,506
Net book value
As at 3 1 March 2023 9,242 9,242
As at 3 1 March 2022 21 ,572 21 ,572

1 6. Tangible fixed

assets

Tangible fixed
assets
Group Land & Fixtures and Computer Motor
Buildings fittings equipment Vehicles Total
Cost
As at I April 2022 4,45 1 ,099 690,787 3 14,456 1 14,133
Additions 389,096 21,187 410,283
Disposals (63,500) (7,533) (7 1 ,033)
As at 3 1 March 2023 4,45 1 ,099 I 6,383 328,1 10 1 14,1 33 5,909,725
Depreciation
As at I April 2022 I 16 499,342 21 5,806 2,262, 79
Charge for the Year 99,682 104,625 34,397 3,719 242,423
Disposals (63,500) (7,533) (7 ,033)
As at 3 1 March 2023 540,467 242,670 1 1 1,1 34 2,433,569
Net book value
As at 3 1 March 2023 2,91 1,801 475,916 85,440 2,999 3,476, 56

52

4. Financial Statements

North Devon Hospice (Company Limited by Guarantee) Notes to the Accounts

For the Year Ended 3 1 March 2023

As at 3 1 March 2022 3,01 1,483 19 1 ,445 98,650 6,718

Included in Land and Buildings is leasehold property with a carrying value of {473,384, with the balance being freehold. Land with a carrying value of El 75,729 (2022: El 75,729) is included in freehold property and is not depreciated. All of the above assets are used for charitable purposes.

1 6. Tangible fixed assets (continued)

Charity Land & Fixtures and Computer Motor
Buildings fittings equipment Vehicles Total
Cost
As at I April 2022 4,45 1 ,099 690,787 3 14,455 1 14,1 33 5,570,474
Additions 389,096 21,187
Disposals (63,500) (7,533)
As at 3 1 March 2023 4,45 1 ,099 I 1 6,383 328,1 10 1 14,1 33 5,570,474
As at 3 1 March 2023 540,467 242,670 Il 1,34 2,433,569
Depreciation
As at I April 2021 I 16 499 , 342 2 1 5,805 107,415 2,262, 1 78
Charge for the Year 99,682 104,625 34,397 3,719 242,423
Disposals (63,500) (7,533) (7 ,033)
Net book value
As at 3 1 March 2023 2,91 1,801 475,916 85,440 2,999 3,476, 1
56
As at 3 1 March 2022 3,01 1,483 1 9 1 ,445 98,650 6,718

Included in Land and Buildings is leasehold property with a carrying value of {473,384, with the balance being freehold. Land with a carrying value of El 75,729 (2022: El 75,729) is included in freehold property and is not depreciated. All of the above assets are used for charitable purposes.

53

4. Financial Statements

North Devon Hospice (Company Limited by Guarantee) Notes to the Accounts

For the Year Ended March 2023

3 1

17. Trading subsidiary

NDH Ventures Ltd.

The charitable company owns the whole of the issued ordinary share capital of NDH Ventures Limited, a company registered in England. The subsidiary is used for non-primary purpose trading activities. All activities have been consolidated on a line by line basis in the statement of financial activities. Available profits are gift aided to the charitable company. A summary of the results of the subsidiary is shown below:

A summary of its results is shown below:

Turnover (789,95
Cost of Sales 9)
552,889 2022
Gross Profit (73,4 1
Administrative Expenses 8) 689,70
Other operating income 7
Profit on Ordinary Activities (134,704
Taxation 479,471 )
Profit for the financial year
555,00
479,47 1
Gift aid paid to parent undertaking under deed of covenant 3 (71
The aggregate of the assets, liabilities and funds were: ,328)
479,471
Assets
Liabilities
1 483,76
54,876 5
(71,167)
18. Parent charity
The parent charity's gross income and the results for the year are disclosed as follows: 83,709 483,76
5
483,76
5
Gross income
Result for the year
2023 2023 1 68, 1 10
(84,401
)
687,438 (134,549)
54

18. Parent charity

4. Financial Statements

North Devon Hospice (Company Limited by Guarantee) Notes to the Accounts

For the Year Ended March 2023

83,709 2022 584,20 4 6, 1 33,76 1

3 1

19. Investments

Group Group Charity Charity
2023 2022 2023 2022
Fair value at the start of the year 6,696, 161 5,730, 148
Additions at cost 800,000 750,000 800,000 750,000
Disposal proceeds
Net (loss)/gain on change in fair value (220,826) 30 ,587 (220,826) 301,587
7,275,335 6,696, 1 6 1 7,360,909 6,781 ,735
Historic cost at the end of the year 5,527, 53 4,727, 1 53 12,727 1
2,727
Investments comprise:
2023 2022 2023 2022
UK Common investment funds
Unlisted shares in subsidiary undertaking		 7,275,335 6,696, 1 6 1 7,275,335 6,696, 1 6
1
Incorporated in the UK 85,574 85,574
Investments representing over 5% by value of the portfolio (group and charity) comprise:
2023 2022
BNY MELLON - Newton SRI Fund for Charities 6,696, 1 6 1
BNY MELLON - Sustainable Global Dynamic Bond Fund 804,812
20. Stock
Group Group Charity Charity

55

6,781 ,735

7,275,335 6,696, 1 6 1

4. Financial Statements

North Devon Hospice (Company Limited by Guarantee) Notes to the Accounts

For the Year Ended March 2023

Finished goods for resale

2023 2022 2023 2022 8,520 12,530

21. Debtors

Debtors
Group Group Charity Charity
2023 2022 2023 2022
Trade Debtors 27,474 69,274 27,474 69,274
Other Debtors 54,287 32,426 54,287 32,426
Prepayments 186,01 2 131,137 173,179 1 24,993
Accrued income 2,291 ,674 2,29 1 ,674
18,367

3 1

56

4. Financial Statements

North Devon Hospice (Company Limited by Guarantee) Notes to the Accounts

For the Year Ended March 2023

  1. Analysis of cash and cash equivalents
Group Group Charity Charity
2023 2022 2023 2022
Cash in hand 1 5,827 9,808 15,827 9,808
Cash at bank 12 2, 1 9 1
,640
2,049 2,20 1
,448
Analysis of net funds Opening Cash flow Closing
12,720 (287,994)

Total cash

23. Creditors: Amounts falling due within one year

Group Group Charity Charity
2023 2022 2023 2022
Trade Creditors 1 85,584 1 3 1 ,999 1 85,584 1 3 1 ,999
Amounts due to group undertakings 1 20,847 1 38, 1 64
Other taxes and social security 84,61 1 83,562 84,61 1 83,562
Accruals 145,590 125,488 1 45,590 1 25,488
Deferred income (Note 24) 145,006 1 10,083 76,360 28,203
560,79 1 451,1 32 612,992 507,4 1 6

24. Deferred income

Deferred income comprises of Fundraising Events income, where events will take place in the future year, and Lottery income, where draws will take place in the future year.

Group Group Charity Charity
2023 2022 2023 2022
Balance Brought Forward 1 10,083 127,453 28,203 45, 1 71
Balance Carried Forward 145,006 1 10,083 76,360 28,203

57

4. Financial Statements

North Devon Hospice (Company Limited by Guarantee) Notes to the Accounts

For the Year Ended March 2023

Amount released to income in the year (1 10,083) ( 127,453) (28,203) (45, 1 71 ) Amount deferred in the year 145,006 1 10,083 76,360 28,203

58

3 1

Financial Statements

North Devon Hospice (Company Limited by Guarantee) Notes to the Accounts

For the Year Ended March 2023

4,

25. Provisions — deferred tax

Provisions — deferred tax
Group Group Charity Charity
2023 2022 2023 2022
Balance Brought Forward 2,521 2,521
Increase in provision in the year
Balance Carried Forward 2,521 2,521

26. Pension schemes

Defined benefit pension schemes

NHS pension scheme

The company contributes on behalf of its employees to the National Health Service pension scheme. The NHS Pension Scheme is an unfunded, defined benefit scheme that covers NHS employers, General Practices and other bodies, allowed under the direction of the Secretary of State, in England and Wales. As a consequence it is not possible for the charity to identify its share of the underlying scheme.

The pension cost charge for the period amounted to 134,287 (2022: El 17,605).

Contributions amounting to El 9,661 (2022: El 8,322) were payable to the Fund at 3 1 March 2023 and are included in other creditors.

Defined contribution pension scheme

AEGON pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the group to the scheme and amounted to E 124,925 (2022: El 24,736).

Contributions amounting to El 9, 180 (2022: El 8,827) were payable to the Fund at 3 1 March 2023 and are included in other creditors.

27.

Group As at I Gains/ As at 3 1 April (Losses) March

59

4. Financial Statements

North Devon Hospice (Company Limited by Guarantee) Notes to the Accounts

For the Year Ended March 2023

Statement of funds

2022 Income Expenditure Transfers 2023
Unrestricted Funds:
Designated Funds:
Buildings and assets 3,329,869 155,529
Risl< based reserve
Total designated funds 595,948
Income Generation Diversification 600,000 600,000
H2H Service Provision (328,832) (8,536)
Strategy Service Provision
Organisational Development 21-26 2,944,423 (71 1,967) 448,955
Strategy Digital Development
& Innovation 21-26 271 ,096 (5,797) 265,299
Revaluation reserve (220,826)
General funds 746,405 5,688,852 (5,463,703) (300,068) 67 ,486
Total unrestricted funds 14,24 1,48 1 5,688,852 (6,5 1 0,299) 75,054
Restricted Funds:
Patient services 1 5,888 82,540 (83,779) 1 4,649
Education 12,500 1 2,500
Long House 2,088 2,088
Capital other 62,68 1 20,227 (75,054) 7,854
Total restricted funds 80,657 1 15,267 (83,779) (75,054) 37,091
Total funds 14,322, 1 38 19 (6,594,078) 1 3,532, 79

60

Financial Statements

North Devon Hospice (Company Limited by Guarantee) Notes to the Accounts

For the Year Ended 3 1 March 2023

Statement of funds

4,

(continued) Comparative

Total designated funds 1
10,002		 ( I ,046, 1 I , 1 62,225
58)
Total unrestricted funds (5,6 1 36,827 4,241
9,904) ,481
Total restricted funds 126,416 428, 145 (437,077) (36,827) 80,657
Group As at I Gains/ As at 3
1
April (Losses) March
2021 Income Expenditure Transfers 2022
Unrestricted Funds:
Designated Funds:
Buildings and assets 3,406,589 (76,720) 3,329,869
Risk based reserve

61

4. Financial Statements

North Devon Hospice (Company Limited by Guarantee) Notes to the Accounts

For the Year Ended March 2023

Statement of funds

Statement offunds
Income Generation Diversification 600,000 600,000
H2H Service Provision (303,753) 65,839
Strategy Service Provision &
Organisational Development 2 1-26 (266,036) I 15,079 2,944,423
Strategy Digital Development
& Innovation 21-26 3 1 7,603 (4,534) (4 1 ,973) 271 ,096
COVID Response 471 ,835 (471 ,835)
Revaluation reserve 301,587
General funds 534,096 (4,573,746) 746,405
Restricted Funds:
Patient services 38,935 25,015 (48,062) 1 5,888
Long House 2,088 2,088
Capital other 85,393 14,1 15 (36,827) 62,68 1
Covid 389,015 (389,0 1 5)
Total funds 14,322, 38

Purposes of restricted funds

Patient services are funds received to support the delivery of our services.

Long House represents funds received for the running costs of The Long House outreach centre in Holsworthy.

Other capital funds are funds received for specific capital projects.

Purposes of designated funds

Buildings and asset reserve is to match the net book value of hospice assets at Deer Park, Westcombe Lane, and at the Long House which cannot be used without being sold.

Risk based reserve is to cover the financial impact of the main risks to the charity.

Income Diversification reserve, it is anticipated that these funds will be invested in the next 12 months on a project which will see an additional regular sustainable income stream on an annual basis.

62

4. Financial Statements

North Devon Hospice (Company Limited by Guarantee) Notes to the Accounts

For the Year Ended 3 1 March 2023

Statement of funds

  1. (continued)

H2H Service Provision provides hands on nursing care to patients in their own homes with complex healthcare conditions, the teams focus being to keep patients at home and avoid unnecessary hospital admissions. Recognising the huge importance of the vital service, trustees have set aside funds to ensure that a minimum level of service can be provided over the next 5 years.

Strategy 2021-2026: Service Provision and Organisational Development, this amount relates to the specific elements of the 5-year plan to further improve services that enhance the support to our patients and their families. We wish to be even more responsive to their changing needs and ensure that we have the staff in place with the appropriate skills to support this.

Strategy 2021-2026: Digital Development and Innovation - this fund supports the digital and innovation part of our strategy. Including initiatives such as digital tap and go donations, improving patient access via digital technology and further digital fundraising activities.

Investment revaluation reserve is a fund equal to the revaluation of investments to market value at the balance sheet date, which has not been realised.

Charity

For the purpose of section 408 of the Companies Act 2006, the net movement of funds for the Company is a surplus of {789,959 (2022: {584,204). Total funds brought forward were {14,322, 1 38 (2022: El Total funds carried forward were El 3,532, 1 79 (2022: {14,322, 138).

28. Analysis of group net assets between funds Analysis of group net assets between funds
At 3 1 March 2023 General Designated Restricted
Funds Funds Funds Total
Tangible & Intangible Fixed Assets 3,485,398
Investments 7,275,335 7,275,335
Other Assets 671,486 37,09 1 2,77 1
,446
671 ,486 37,09 1

At 3 1 March 2022 General Designated Restricted

At 3 1 March 2022 General D esignated R estricted
Funds Funds Funds Total
Tangible & Intangible Fixed Assets 6,696, 161 3,329,869
Investments
Other Assets 746,405 3,469,046 80,657 4,296, 1
08
746,405 80,657 1 4,322, 138

63

There are sufficient resources available, held in an appropriate form, to enable restricted and designated funds to be applied in accordance with restrictions imposed.

4.

29. Operating lease commitment

Group and Charity

The group's total future minimum lease payments under non-cancellable operating leases is as follows for each of the following periods

2023 2022
Less than one year 92,263 1 09,838
One to five years 224,973 143,896
Over five years 320,755 335,737
637,991 589,47 1
The amount of non-cancellable operating lease payments recognised as an expense during the year was 238, 1 49

Financial Statements

North Devon Hospice (Company Limited by Guarantee) Notes to the Accounts

For the Year Ended 3 1 March 2023

65

Hospice Your life is a story, the ending matters

Financial Statements

North Devon Hospice (Company Limited by Guarantee) Notes to the Accounts

For the Year Ended 3 1 March 2023

67