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|



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## 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. 

4 



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 

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## 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: 

- We cared for 1,817 (2021/2022 1,657) people across North Devon 


- Our Community Clinical Nurse Specialists made 2,663 visits across the whole of North Devon (2021/22 2,522) supporting 1,132 people (2021/22 1,043) 


- Our Hospice to Home team made 1 1 visits to our patients homes (2021/22 5,490) spending 3,244 hours supporting our patients to remain at home (2021/22 3, 1 84) 


- Our Bedded Unit cared for 92 complex patients (202 1/22 80) Our Supportive Care team cared 1026 people (2021122 939) 




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

Key Impact in 2022/23: 

- Be part of the NHS Devon Commissioning Steering Committee who completed a Devon-wide End of Life Care Commissioning Review. 


- Working with our colleagues at South West Ambulance Trust to establish a patient pathway which allows for a paramedic who is on a call to an end of life patient to convey them to our 


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

- Supporting both Rapid Intervention Centre and North Devon District Hospital's Pathfinder to avoid unnecessary admissions and to support speedier discharges respectively 



## 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 

- In supporting our pay policies principle of being fair, simple and transparent, we have completed an external benchmark against all job descriptions. In so doing we can be assured that our pay remains fair and competitive 


- We have now completed 5 Cohorts of leadership development training. Therefore nearly 50 of our staff across the organisation have completed the course   We continue to deliver on our wellbeing plan to support the physical and mental health of all of our staff 


8 




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


Key Impact in 2022/23: 

- The last 12 months has seen a very strong recruitment period. We have had nearly 1 00 new volunteers join the team 

- A successful trustee recruitment campaign has led to the appointment of 3 new trustees to the board including a local 

- In recognition of outstanding service, we had two of our volunteers represent our volunteering body at the Queen's Garden Party held at Buckingham Palace last summer as well as one of our volunteers being awarded the League of Mercy Award 

## 6. Embrace Technology To Enhance Our Care 

Key Impact in 2022/23: 

- We continue to gain both time and financial efficiencies through the continued automation of a lot of our historic paper based procedures. The most successful of which this year has been our automated purchasing and invoice approval system 


- We have successfully renewed Cyber Essentials certification despite increase in requirements to obtain this 


- We have updated and successfully published our DSP Toolkit to maintain HSCN connection with the NHS 


- In partnership with Petroc (Centre of Technology and Innovation Excellence) we have undertaken detailed 360 degree photos of the gardens (Phase I) to increase visibility of the Hospice and make it more accessible online through Google maps/ street view. On the back of the refurbishment of the Bedded Unit we have also created a virtual tour of the unit to give future patients a clear understanding on what a lovely environment the unit is. In so doing, hopefully removing some of the misperceptions and fear that they may have had about being admitted. 


9 




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

Key Impact in 2022/23: 

- Our total income this year was ".02 million a reduction of 


   - E3 1 5k from the previous year (2021/22 E6.34m) 

- Our total operating deficit was '569k (2021122 surplus was 14k) 



- We used reserves of E790k during the year bringing our reserves down to El 3.5 million (2021/22 El 4.2m) 


8. Ensure That The Relationship We Have With The Community We Serve Inspires And Mobilises People To Support North Devon Hospice's Mission 

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:<br>1,179<br>1 ,395<br>1,449<br>1 ,439<br>1,144<br>1,243<br>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 bathroom's which are less clinical in look and feel and enable better access 

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 


- "On unit" quiet room to support upset family members 


- Feature lighting in reception to brighten the entrance 


- New entrance for easier ambulance access 


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. 



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14

## Your Long House 

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


counselling 

- Patient group support 

- Carer group support 

- Complementary therapy 

- Community Nurse Specialist outpatient appointments. 

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: 










- Rolled out Healthroster and Webrecruit across the whole organisation, completing our HR technology projects and process redesign to make our HR support function more user friendly, agile and effective 

- Launched our new Employee Handbook and an Induction Handbook which, rather than being a lost of policies and procedures, encourages people to be themselves and ask questions 

- Through the twice yearly vision sessions we have completed a staff engagement exercise looking at how we live our core competencies and demonstrate these in our day to day work. We also hold focus discussions with staff on personal and workrelated stress, what support we can offer staff and also to get feedback from staff in designing a Wellbeing Fayre for later in the year. 

- We continued running our Leadership Development and HR skills training for current and new leaders 

- As part of our Wellbeing Strategy we continued to run Wellbeing Wednesday articles with supporting resources added to our Wellbeing page on our intranet.  In support of our Pay Framework being fair and transparent, we completed a significant project to re-benchmark all roles and review all job descriptions making adjustments to both where needed 

- Internally promoted 6 members of staff into line management roles. 

- Completed the pilot on our Hybrid working model. In so doing we will now formally offer a flexible working model which allows for staff to work from home three days of the week should they so wish, as well as flexible working hours in recognition of other life factors. 

## 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: 

- l. Be there for everyone who needs us by providing outstanding end of life care 

2. Walk arm in arm with every healthcare partner, to ensure local people receive the best care at the right time, in the right place 

3. Provide education opportunities for the health care workforce to enhance end of life care in any setting 

4. Nurture content, engaged and fulfilled employees and volunteers 

5. Embrace our volunteering community and inspire people to get involved. 

6. Invest in technology to enhance our care 

7. Have an inspired and motivated relationship with the community we serve 

8. Be financially stable in order to continue being there for all the family. 

In the next 12 months our key priorities will be: 

Work with NHS Devon to get Hospice to Home commissioned 


2. 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 

3. Increase income from our Retail division 

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4. Develop a new website 

5. 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 


- The Corporate Governance Committee: Meeting four times a year, this focuses on matters of governance, regulation including health and safety, audit and risk. In addition the Care Quality Working Group reports into this committee. North Devon Hospice's risk register would also be reviewed at this committee before being presented to the Board. Under the umbrella of this committee a new committee called the Nominations Committee was established to cover all recruitment responsibilities relating to new trustees and the Chief Executive on behalf of the Board 


- The Strategic Development Committee: Meeting twice a year, this considers how the hospice is performing against the strategic plan 


- The Finance and HR Committee: Meeting four times a year, this reviews the financial performance of the organisation against both budgets and reserves and considers whether the hospice has the resources to achieve its aims and objectives. The committee receives the report from our statutory external auditors who attend the meeting annually 


- Income Generation & Innovation Committee: For North Devon Hospice to remain financially stable and best place to support our patients and families it is essential that 


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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: 

- Care Quality Working Group: To enhance the already existing focus on patient care, the Care Quality Working Group ensures effective clinical governance and audit 


- Trustee Working Group: This working group is attended by the Board of Trustees and the Senior Management Team. This open forum is an opportunity to discuss and explore any particular topic in more detail. In this year the group met to carry out a deep dive on our income and investments as well as reviewing the issues of equality, diversity and inclusion for North Devon Hospice. 


## 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 

   - 2.H2H service review 

- 3.Actively seeking diversification of income 

- Inability to fund people 4.FR and retail income streams resource closely reviewed 

   - 1.Continue to promote the benefits and value that the hospice provide 

- 2.Promote the need for continued 

- Macro-economic financial support to us as a local conditions charity 

|||||3. Additional fundraising events|
|---|---|---|---|---|
|||||planned<br>for<br>financial<br>year|
|||||2023/2024|
|||||4. To increase reach and increase|
|||||digital presence|
|||||1. EOL<br>Funding<br>review<br>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||<br>Care|<br>Director|
|Consultant||||2. Recruitment commenced for a|
|Key|Risk Action|||Locum post as well<br>3. Full Page advert placed in|
|Plan||||Hospice<br>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: 

- The purposes, aims and values of the charity and its beneficiary needs 

- How this remuneration impacts on the overall pay policy for all employees and for 

- the Senior Management team in particular 

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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 

- We continue to manage our finances to ensure that we are best placed to deliver high quality services to our patients and their families, both now and in the future  This year we incurred an operating deficit of {569k, added to this was a negative revaluation of investments of 021k (2021 /22 {302k positive) which meant that we used reserves of {790k during the year, bringing our reserves down to El 3.5 million (2021/22 [14.2m) 


- The financial results are detailed in the Consolidated Statement of Financial Activities on page 37 of the report 


- In the year we saw a significant increase of 7.8% in our charitable expenditure as we strive to react to our patient's needs. Our total expenditure for the year rose to {6.594m (2021/22 {6.057m) an increase of 8.9% as we increased the number of patients we cared for by 9.7% 


- We faced the perfect storm of increased demand for our services, income dropping and our costs increasing. In particular increasing energy costs, fuel, food costs and salary increases to ensure we remain competitive in the market place  We continue to look at our financial modelling over the next 5 years to ensure that we have suitable reserves to deliver both our current services and also extend these services as outlined in our strategy. Having reviewed this they are comfortable about our going concern 


23 



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

- All our services are supplied free of charge to those with a progressive life limiting illness as well as to their families and carers. Last year we supported 1 7 people across North Devon. Whilst we receive some funding from the NHS, we need to raise more than {5.3 million each year from our supporters. 


## Income 

- Total income this year was {6.02 million a reduction of {3 1 5k from the previous year (2021/22 {6.34m). There were a number of factors influencing this 


- In memoriam donations totalled 238k (2021/22 {784k): this is a significant reduction on the previous year, when we were supported by Max the 'Boy in The Tent', our In memoriam donations are now back to average levels 


- Legacy income did increase to El .2million in the year [369k better than previous year (202 1 /22 {842k). We are always very conscious of the fact that legacy income is unpredictable, and as such we always err on the side of caution when planning for this type of income 


- This year has seen significant growth in our retail income of El .5 million which is up 20.2% on last year. Nationally charity retail grew by 14.6% last year according to the Charity retail association, so we are pleased that locally we have made better growth 


- Lottery income became more challenging with attritions rates increasing as people look to reduce their outgoings, however we achieved a total income of {645k (2021/22 {647k) 


- During the year we had to postpone Nightwalk our flagship walking event to the following financial year, this reduced the amount of income raised by our own fundraising events. The team therefore sought other income opportunities which meant income raised by fundraising and gifts in kind remained constant at {857k. We continue to see increased competition from both local and national charities, this alongside the cost of living crisis makes raising income challenging 


- Our annual grant from NHS Devon increased by {19k (l .7%), to El. 1 53m. That grant contributes to the running of our Bedded Unit and our Community Nurse Specialists in the community. Our Hospice to Home service is in part funded through Continuing Healthcare (CHC) income of El 28k (2021/22 El 29k), with the remainder supported from reserves that we have specifically designated to cover the cost of this service. 


Continuing Healthcare 2% Fundraising and donations 14% 

24 




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



**----- Start of picture text -----**<br>
Legacies and in memories gifts<br>24%<br>**----- End of picture text -----**<br>


## Expenditure 

- Expenditure for the year totalled {6.594million (2021/22 {6.056m). Of this expenditure {84k (2021 /22 {437k) was paid for from restricted income, which is where the donor specifies the use 


- The cost of raising funds totalling 0.4 million (2021 /22 Q.24million) has increased as we have increased our activities particularly with in retail. With income up 20.2 % in retail, we have invested in a clothes hanging system in our central warehouse which reduces the time from donation receipt to displaying items for sale in our shops. Expenditure in retail has increased by 9% to El .4 million reflecting increases in cost of living for both employment costs and running costs. Towards the end of the financial year, we engaged Skyline Business Services to provide an independent view of how we could increase profitability within retail. Working with the newly appointed Head of Retail we are confident we can increase this year's profit of {76k (2021/22 Loss of El 6k) further 


- Expenditure on charitable activities increased this year to {4.16 million (2021 /22 {3.82 million) this is in part due to ever increasing costs pressures, but also because we are finding the specialist needs of our patients are more demanding. As patient acuity increases with more complex and comorbidity illnesses the ratio of specialist staff to support our patients increases too. This year again saw an increase in the 


25 



- number of beneficiaries we were able to support: 1,817 (2021 /22 I ,657) during the year 



- Capital expenditure this financial year totalled {410k, an increase of 057k from the previous year. The majority of this expenditure was in relation to the complete refurbishment of our bedded unit. Each of our 7 rooms with ensuite bathrooms were redesigned to make them feel as homely as possible. The rooms were redesigned to ensure that all clinical equipment was hidden to give the rooms a more relaxed feel. Hoists and medical gas pipes were built in carefully designed bedroom furniture in order that they can't be seen until needed and even then, they are still carefully disguised. The ensuites were redesigned to ensure there was easier access for patients with mobility issues who would need assistance from nurses to use the facilities. The feedback from everyone has been phenomenal and had made a very positive impact on our beneficiaries' experiences 

- The charity has a wholly owned trading subsidiary called NDH Ventures Ltd. The trading activities of this company are the hospice lottery and the sale of bought in goods through our shops. The profit for this company of {479k is gifted to the charity (2021/22: {484k) 


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




- The hospice has a policy which seeks to ensure that, not only are investments made ethically, but that the investment strategy precludes investing in any company whose principal activities have an adverse impact on the underlying beneficiaries of the hospice 

- The main areas of investment exclusion are those companies who have involvement in the manufacture or sale of weapons specifically landmines, cluster bombs, weapons of mass destruction, and chemical weapons or similar, or derive more than 10% of their turnover from tobacco or alcohol products, or provide no evidence of response to allegations of severe damage to ecosystems, natural habitats or populations of species i.e. biodiversity (for high and medium risk issues), or those who have breached a discharge consent for a Red list substance in the last three years or provided no evidence of response to allegations of breaches of core International Labour Organisation standards on child labour or forced labour in its own or its supply chain operations, or derive more than 10% of its turnover from the extraction of thermal coal, tar sands or oil shale. Any investment that initially passes the above 

26 



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







- Newton Investment Management are appointed to manage the investment portfolio, their objectives are to achieve a balanced return from income and capital growth over the long-term 

- At the beginning of this financial year our investment portfolio was valued at [6.7 million (2021/22 {5.64m). During the year we added an additional {800k (2021/22 {750k) to the portfolio due to cash being received from legacies 

- At the end of this year we had a negative investment revaluation of f-22 1 k (202 1 /22 {302k positive). This decrease has been offset to reserves, specifically the designated reserve which was set aside to offset any such losses. This is further detailed below. The portfolio at the end of the year was valued at 0.3m million (2021/22 {6.7m) 

- We hold cash both in our current account for working capital purposes and in several deposit accounts. The total cash holding at year end was El .9million (2021/22 2.2m) which is stated after cash of {800k was transferred to investments 

- The Finance and HR Committee measures the performance of our portfolios against various benchmarks. Quarterly reports are received from our brokers and The Board of Trustees meet with them annually. 

- As part of effective financial management and forward financial planning, trustees review the level of reserves held on a regular basis. Trustees look forward over the next 5 years and consider various scenarios which could affect our income or cost base. For example, considering the impact of a significant drop in legacy income, which is always an area of great uncertainty, or what is happening in the external environment which may affect our cost base or our ability to raise income. Specifically in setting the level of reserves the following steps are taken; 

## 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: 





- Patient services — 5k (2021 /22: 6k) of reserves are restricted for the further enhancement of services delivered to patients and will be used in accordance with the donors' wishes 

- Education - f- 1 2.5k (2021 /22: {0k) of reserves specifically for clinical education purposes 

- Capital Projects — {7k (2021 /22: {62k) has been restricted for capital projects relating to improvements predominantly to support patient areas {75k was used during the year to support the bedded unit refurbishment in line with donor wishes 

- The Long House — (2021/22: 2k) relates specifically to the projects at The Long House, our outreach centre in Holsworthy. 

## Designated Reserves 

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


- Building and Assets — as previously stated the trustees consider fixed assets essential to the delivery of the charity's aims, as such a fund equal to the net book value of hospice fixed assets, which cannot be used to fund expenditure without being sold has been set aside. This year saw an increase in this fund of El 55k (2021/22: decrease {75k) being the net of additions in the year and the annual cost of depreciation 



- Investment Reserve — the charity holds {7.3million (2021/22 {6.7 million) in investments, a fund is held equal to the revaluation of investments to market value at the balance sheet date which have not been realised. This year saw a decrease in this fund of {221 k (2021 /22): increase {302k), bring the reserve to El.7million (202 1/22 El .97m) 

- Risk Based Reserve — as previously described the Trustees review as part of the risk management and financial planning process the level of reserves to cover the financial impact of the main risks to the charity including exposure to changes in income or expenditure. This year the fund remained at 2.85m (2021122: 0.85m) 


- Income Diversification — the trustees have identified the need to incur expenditure in order to establish an alternative sustainable source of income in addition to our current income streams. Having reviewed the reserve, it is to remain at {600k 


- Hospice to Home — recognising the huge importance of our Hospice to Home team who provide hands on nursing in patients homes, the trustees have set aside funds equivalent to the cost of the service for five years, whilst we continue to work with the Integrated Care Board (ICB) to find sustainable funding for this service. We have used {329k (2021/22 [304k) 

28 



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 



- Strategy 2021-2026 — we launched the new 5 year strategy in 2021. The strategy was refined in light of the COVID pandemic and reviewed taking into account future needs. A number of key projects and milestones have been identified to achieve this strategy, as a result the trustees reviewed these designated funds to support the strategy moving forward. 

- Service Provision and Organisational Development- we used {712k of the funds this year to support both the cumulative effect of our pay model to ensure that staff are paid no less than 5% below the market median for their roles, thus ensuring that we are able to attract and retain the highly skilled staff we need to sustain and develop our services. As well as for funding the refurbishment of the Bedded Unit patient rooms and ensuites Additional funds of {449k have been added to this reserve to support the ongoing strategy. The total fund at the end of the year to support our strategy through to 2026 is f-2.7 million (2021/22 Q.994 m). As we look to further develop services to enhance the support to our patients and their families and be more responsive to their changing needs 


- Digital Development and Innovations- during the year ending March 2023 we utilised {6k of this fund (2021/22 [5k) The funds of Q65k (2021/22: 071 k) will be used to support further digital development and innovation as identified in our strategy, including initiatives such as digital tap and go donations, improving patient access via digital technology particularly for those in remote locations and improved education access via podcasts and webinars 

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: 



- There is no relevant audit information of which the charity's auditors are unaware; and 

- The trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information. 

## 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 



- Make judgments and estimates that are reasonable and prudent, and 

- Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation. 

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



30 



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



31 



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



32 



## 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: 



- Enquiries of management regarding their knowledge of any non-compliance with laws and regulations that could affect the financial statements. 

- Review of up to date correspondence with the CQC, CQC website and last inspection report to identify any non-compliance. 

35 



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



- Review of the group's GDPR policy and enquiries to the Data Protection Officer as to the occurrence and outcome of any reportable breaches, confirmed through review the ICO website. 

- Reviewed legal and professional costs to identify any possible non-compliance or legal costs in respect of non-compliance. 

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: 



- Audited the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business. 

- Reviewed estimates and judgements made in the accounts for any indication of bias and challenged assumptions used by management in making the estimates. 

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,<br>||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<br>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,<br>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<br>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. 

2. 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: 

- Costs of raising funds relates to the costs incurred by the charitable company in inducing third parties to make voluntary contributions to it, as well as the cost of any activities with a fundraising purpose. 

- Expenditure on charitable activities includes the costs of delivering services to our patients and their families as well as educational activities undertaken to further the purposes of the charity and their associated support costs. 

- Other expenditure represents those items not falling into any other heading. 

43 



## 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) 

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 

2. 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 

3. 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|<br>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 

6. 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 

|<br>Notes to the Accounts<br>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 

|<br>Notes to the Accounts<br>Forthe Year Ended3 1March2023<br>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<br>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<br>Unlisted shares in subsidiary undertaking|7,275,335|6,696, 1 6 1|7,275,335|6,696, 1 6<br>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 

22. 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, 

27. 

(continued) Comparative 

|Total designated funds|1|<br>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 

27. (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