Company Reglstrnlion No. 01776496 (Erfand and Wales) ReE15tered Charity No. Z88462 St Michael's Hospice Hastings and Rother Report of the Trustees and consolidated financlal statements for the year ended 31 March 2022 *APGITWoJ2" 04111￿022 COMPANIES HOUSE 41 St Michael's Hoswe HastinF and Rother Corntents Page Reference and administratrve infomiation Report of the Trusrees ar￿ strategK report Report of the independent auditors 16 Consolidaied statement of financial activit￿5 20 Consolidated balall￿ sheet 21 Consolidated cash fiow statement 22 Notes to the financial staternents 24 5t Mlchael's Hospi¢e Hast￿ and Rother Reference and administrative information Company informatlon St Michael'5 Hospice Ha5tings and Rother. a ￿gIStered charity artd a company limited by guarantee, was established on 8 December 1983 and formalty opened its sepiice in April 1987. Its Artides of Assouation. were last revised and agreed on 27 January 2012. The Tnjstees of the charity (who are also Directors of the companyl are drawn from the local community." The Chair will be recruited from the local community in the event that they are not elected by the Trustees from amongst those on the Board. President Julian Avery Board of Trustees Susan Munroe (Chairl Steve Barnes Jayne Black Tony Boardman Simon Davis Dr Peter Dewhurst Nigel Gaymer Kerry Gentleman Dr Rosie Guy Nigel Kirby-G￿en Geoff Longmire lan Menzie5 lan Ross Linda Stevens James Thomas {retired 25 March 20221 (appointed 21 Jan 2022. resigned 30 May 20221. (appointed 24 Sept 20211 {retired 25 March 20221 {reti￿d 25 March 20221. (appointed 24 Sept 20211 (appointed 24 Sept 2021, resigned 9 Jan 20221 {appointed 24 September 20211 Company Secretary Winyo Aidam. Darren Mackenzie (to 4 April 20221 (from 4 April 2022) Chief Executive Dr Karen Clarke Leadership Team Vlnyo Aidam Darren Mackenzie Dr Declan Cawley Perdita Chamberlain Penny Jones Evelyn Prodger Finance and IT Director (to 4 April 20221 Finan￿ and IT Director lfrom 4 April 20221 Medical Director Income GeneratK)n Director Nursing and Quality Director Ito 31 Juty 20211 Nursing and Quality Director lfrom 18 October 20211 Strategy and Integration Director Or8ani5ational Development Director Rebecca fiberini Caroline White St Michael's Hospice Hasti￿$ and Rother Reference a￿1 admlni5trative infomiation (continued) Registered infomiatt¢Jn Registered tharity name St Michael'5 Hospice Hasting5 and Rother Charity number 288462 Company registration nurnber 017764% Re81St¢￿d office 25 Upper Maze Hill St Leonards on Sea East Su55ex TN38 OL8 Professlonal advbSOfS Auditays Saffery Champness LLP Chartered Accountants 71 Queert Victoria Strèet London EC4V 48E Bankers Uoyds Bank Pk 17 Wellinglon Pl Hastings East Sussex TN34 INX Solicitors Gaby Hardwicke 34 Wellington Squa Hastings East Sussex TN34 IPN Investrent advi￿)r5 Rathbone Investment Management 8 Finsbury Circus London EC2M 7AZ Pavo ? St Michael's Hospice Hasting5 and Rother Report of the Tru5tee5 and strategic report R¥r the year ended 31 March 2022 The Trustees present their report and accounts for the year 31 March 2022 including the strategic Report for the company. These accoLtnts comply with the charl￿$ governing documenL which states that the charitvs objective is to promote the relief of sickness. the Companies Act 2￿6, the Financial Reporting Standard app,licabie in the UK and Republic of Ireland IFRS 1021 and with the Charities SORP IFRS 1021. St Mrchael's Hospice is ￿gulated by the Care Qualty Commission ICQCI which is the indeiiendent ￿gUlatOr of all health and soaal care services in England. 1. 08JEcnvESAND AcfiviTIES 1.1. Purpose of the charity as set out in the governing document The charity was established to "promote the relief of sickness in such ways a5 the Trustees shall from time to time think fit and, in particular (but without prejudice to the generality of the foregoing), to provide Se￿1￿5 so as to sUp￿rt the physical, psychok)gical. social and spiritual needs of those affected by life- limiting illnesses." 12. Main artlvities of the charlty undertaken In relation to thi>se purposes The overall aim of St Michaefs Hospice is to enable people lover the age of eighteen) living with serious, advanced illness to live as fully as possible and to provide compassKJnate. expert care at the end of Itfe. The service adopts an interdisciplinary approach and works collaboratNety with NHS service5 in primary, secondary and tertiary care, continuing heafthcare. adult sock?1 care and with private and voluntary provider5. The Hospice team acts as a resour￿ to provide specialist advice and support to the wider primary care locality. Itsaim is to: provide specialist and integrated palliative and end of life care and supportto the population of Hastings and Rother irrespective of their diagnosis provide specialist and ho5istic support to family members and tarers of people3iving with an advanced, seriou5 illne5S to enable them to remain as resilient and independent as possible ensure that patients and their families or carers receive appropriate information, t￿atrnent and 5UPPOrt to help manage their illness and the effect of their illness on their wellbeing ensure that patients and their famil*s and carers have knowledge and thoice ￿gardIng how their support and care is delivered. ensure that patientg preference as to how they are ca￿d for and die are obtained and recorded, and where possible, achieved provide specialist support to people who a￿ bereaved. The Hospi￿ accepts referrals from any health practitioner and at￿ seff-referrals, which a￿ discussed with the GP. The inter-disciplinary team provides high qualÉty holistic palliative and end of life care. enhancing the quality of life for patients nearing the end of their lives and supporting family members and carers. This includes.. specialist symptom control- to keep patients as comfortable and well as possib holistic emotional. social, spiritual and practicalsupport- to make sense of and cope with Irving WFth'or supporting someone with a life limiting illne$5. St Michael'5 HOSPI￿ Hastkngs and Rother Report of the Trustees and strategic report Icontinuedl For the year ended 31 March 2022 rehabilitation- to opttmise patients, independence and parti¢ipatKJll in activities meanin8ful to them in-patient facilities 2417 telephone advice and support for patients. families and health professionals respectful and effective workin8 Wtth other ￿levant primary. secondary. tertiary and social care providers to ensure maximum continuity and 5eamle55 support for patients nearing the end of life and their families supporting people to be cared for in their preferred pla￿ of care whenever possible and in line with their needs ensuTin8 Patienls in re￿Ipt of care are t￿ated with dignity and respect and that their individual needs anil preferences are acknowledged support from trained volunteers expert be￿a¥ement support. Support and ca￿ is highly specialised. individualised and delivered by skilled members of an inter- disciplinary team including consultants in palliatNe medicine. specialist dortors, nurses, health care and wellbeing assistants, therapists. social workers. spiritual support lead and phannacist who work in accordance with professional codes of practbce Iwhere appli(ablel ￿gaI and ethical principles. The Hospice provides palliative care training and 5UPPOrt to health and social care PTofessiona15 and nursing home5. 1,3. Main artiwties undertaken to fvrther the tharbtys purposes forthe publlc benefrt The charity serves a population of c190k living in Hasttngs and Rother. All the artivities undertaken by the charity are to further its charitable purposes for the benefit of the people living within its catchment area and all seNites are provided free of charge. Much of the CharIt￿S funding comes from ILxal indivwjuals and organisations and most of its beneficiaries are predominantly. but rKJt exclusively, drawn from Hastin8s and Rother. Services are also available for those who have not been resident loolly but need support. e& someone WIK) has moved into the area to be closer io their famity. The Trustee5 have considered the Charity Cornmi55ion's guidance on public benefit and can confirrn that the charit￿$ activity (toes delwer public benefi.t. The main benefits that have arisen throughout the yearare detailed in the following pages. 1.4. Aims, details of issue5the charity seeks to tsckle, changes ordifferences it seeks to make Through the seryices it provides. the trainin8 it delivers and numerous fundraising activities, the Hospice aims to raise awareness of, and suprM)rt the end of life and bereavement needs of those living in the local area. 1,5. How achievement of aims will furtherthÈ tharitvs legal purposes Providing Hospice care directty fylfils the chariVs legal aim of promotingthe relief of sickness by supporting the physical, psychological. social and spiritual needs of those affetted by life-limiting illness. lft addition. it provides holistic emotional and spiritual support to make sense of and cope wtth supporting Someone with a life-limiting illness. Providing edLKation and training to other health and social Ca￿ professionals is indirectly fulfilling the charity's aim of promoting ihe rel￿f of sickness. Encouraging people to engage in fundraising activitie5 is a PA￿4 St Michael's Hospice Hastings and Rother Report of the Trustees and strategic report (continued) For the year ended 31 Marth 2022 way of enabling them to do something positNe in someone's memory as well as raising awarenes5 and . support for the charity- This therefore Indirert￿ fulfils the thartWs aim of promotlAg relief of sickness. . . 1.6. Strategies for ach5e¥inE Stated aims In April 2020. the Hospice was due to launch a newvi&on. mission and strategic plans. +lowever. the'COVID- 19 pandemic meant that.the Board ag￿ed to delay this. Throughout 2021122 the charity maintained its four strategic aim5'. Increase dinical reach Improve and demonstrate our effectNeness Develop and value our people . Ensure lon8-term susiainability. Achievement against those aims will be described in SeCt￿n 3. page 7. 2. ThUCWRE, GOVERNANCE AND MANAGEMENT 2.1. Governi￿ document St Michael's Hospice Hastings and Rother is a company limited by guarantee and registered with Companies House. Its Articles of Association were last revised and agreed on 27 January 2012. The Trustee5 of the Charity Iwho are also Oirectors Ot the Companyl are drawn from the local community. 2.2. Organisational structure During the year 2021122, the Board met fomialty stx times. Addttionalty, it held a strategy day in October 2021 to refresh and plan the implementation of the new strategy. Health and Safety (now incorporated into the Governance. Audit and Risk Committeel and the Investment Committees (now incorporated into the Finance Committee) met on￿. Both the People Committee and the Fundraising Strategy Committee met twite. the Finance Commtttee met three times. The. ainical. Governance Committee met six times,. and the Governance. Audit and Risk Cornmittee met nine times Ilargely due to Trustee and Non-Executive Director recruitment processes). The Chief Execut¢ve is appoÉnted by the Board of TnJstees to manage the day-to-day operations of the charity. The Board Seeks to ensure that all the charrtvs activities are within its charitable objertives and its responsibilities include setting the strategic direction and approvrng the business plan and budgets. The Chief Executive and the Leadership Team attend and present inforniation at each formal Board meeting to enable effective deci5ion-makin8 and ensure open and transparent communications St Michael's Hospice Hastings and Rother has two wholly owned subsidiary companies. one for its lottery and another for its retail bu5ine55. The Boards of these companie5 meet four times a year to scrutinise the operation of these businesses and explore opportunities to increase their income.. They also held strategy days within the year. 2.3. Recruitment and appointment of Trustees The Articles of Association state that there must be a minimum of four and a maximum of fifteen Trustees. rhe initial appointment of Trustees is for a period of three years followed by a second term of three years. Thereafter, the po&ttori 15 reviewed annually up to the maximum of nine years. St Mithael's H05pice masti￿ and Rother Report ol thè TrusteÈs and stratrgic report Icontinued) For the year ermled 31 Marth Z022 The Board of Trustees has delegated responsibility for succession plannin& recruitmenl and induttion of Trustees to the Governance, Audit and Risk Committee who then make recommendations to appL)int to the Board. The skllls of existirg Board members are assewd and where a skills gap exists. advertising will take place L•sing the most cost-effectjve method for the skills being sought whTrlst ensuring a wtde. diverse audience is reached. Member5 of the Governance. Audit and Risk Committee will then interview candidates who meet the selection criteria. Once appointed. all new Trustees undertake an induction programrne specific to their needs. The following actNJns were undertaken at General Meetings 24 September 2021 it was fom)ally Tecorded that Smon Davi¥ lan Ross and James Thomas be appointed to the Board a5 Trustee5 and that lan Menzies be appointed as a Trusteetrreasurer 281anuary 2022 it was fomially recorded that Jayne Black be appointed as a Trustee. In August 2021. Kerry Gentleman and Linda Stevens were appointed as WI￿ Chairs. In the last quarter of 2020121, the Chairman undertook a go¥emance miew and as a result, the frequency of Board meetingsand the committee structure was changed and new ierms of reference were agreed with effect from l June 2021. The Trustees who served during the year are shown below and their membership of a sub-commillee is indicated using the following key= Clinical Govemance Committee • Finance Committee Q Fundraising Strate8y Committee • Gtsvernan￿, Audit and Risk Committee Health and Safety Committee (integrated into Governance, Audit and Risk Committee from l June 20211 Investment Committee lintegrated into Finan￿ Comrnittee frorn l June 20211 • People Committee Lottery and Retail Boards- Non-ExecutNe D1￿ctor Steve Barnes • Tony Boardman n Simon Davis n Dr Peter Dewhurst A • Nigel Gayrner • Kerry Gentlemen Dr Rosie Guy • Nigel Kirby-Green • Geoff Longrnire • • Q lan Menzies • • Susan Munroe • • Linda Stevens • • James Thomas • St Michael's Hospice Hastngs and Rother Report of the Tru￿¢e5 ar￿ Strategic report Icontinued} For the year ended 31 March 2022 2.4. Remuneration for key management personnel The Trustees considerthattheTrustees and the LeadershipTeam comprise the keymanagement individua15 of the charity responsible for dir.ectin& controlling and operating the charity on a day to day basis. All Trustees give their time freely and receNed no remuneration within the year.. The Hospi￿ directly employ5 medical consultants. doctors. nursesaftd otherallied healthcare professionals, who are paid at a rate aligned with.the relevant national scale. The Leadership Team femuneration is reviewed annually by the People Committee as part of the annual budget wle where inflation. 'other hospices and NHS increases are taken into consideration. The Hospice also takes part in salary suNeys and benchmarks against a range of peers. 3. ACHIEVEMENTS ANO PERFORMANCE Introduction The pandemic continued to present a unique set of challenges in 2021122 and the HOSPI￿.5 Vlrtual support, established in 2020121, continued and remains a key part of its serviceofferas people remain anxious about being in close proximityto others. The Hospice direct￿ supported over I,7￿ individuals in need of palliative care in the local area, some of whom accessed more than one Hospite service. The services support people at home. in care homes or at the Hospice- this dNerse approach enabled patients to ￿ ca￿d for in the place of iheir choosing. The Hospite's bereavement Se￿iCe expanded significantly to wpe with the increase in demand to support people who were unable to see their loved ones at the end of lrfe or were unable to gather forfuneraf5. At the same time. St Michael's Hospice has continued to focus on quality improvements. including those lated to the new ways it Is working, whilst ensuring it provides personalised, holistic, high quality Ca￿ and.. support to patients and families in an enabling environment that respects their wis1￿. During 2019120 the Hospice engaged with key internal and external stakeholders to infonn tts Strategic development culminating in plans to launch a new strategy from l April 2020. However, this was i￿$tponed due to the pandemic and as a result, an interim business plan in response to COVIt>19 was implemented. This plan incorporated some aspects of the new strategy bLrt focused on maintaining business as usual priorities during this unprecedente(I period. Achievements in relation to th* business plan The following section highlights some of the key achievements in 2021122 according to the strategic aims identified in section 1.6. page 5. 3.1. I￿rease dlnical reach In 2021122 the Hospice supported 1,725 patients11736, 2020nii (excluding support provided to family members or given by Hospice Neighboursl and there were 180 admissions to the In-Patient Unit. Of those patients supported. 48% had a non-cancer diagnosis. In addition. 450 Cl￿nts benefitted from bereavement support The Communtyteam. including Wellbein& sUPPOrted over I.7￿￿ patients and made over 1,350 home visits. despite the challenges with COVID-19. The team also made over 26.￿0 telephone, and 135 video support calls to patients and their carers in this period. St Michael's Hospice Hasti￿ and Rother Report of the Trustees and strategic report Icontinued) For the year ended 31 Marth 1022 Work continued to con501idate the newways of supporting pat*nts and families prompted bythe pandemic lintegrated clinical services,wrtual ratherthan face toface supwrtet¢.l. This included tontinuing to evolve the community service Inuning and wellbeing). maintaining supportto care home residents and employees through Project ECHO and other education inter¥entions- bereavement Sup￿)rtand telephone befr￿nding. A third medical Consultant was appointed in June 2021 which enabled the Hospice to extend its input into the Conquest Hospital and to patients in the community- Wellbeing services continued to be provided from the Hub on Rye Hill to enab￿ patients in the east of the Hospice's catchment area to access support closer to home. Work started in the year on the Hospice's compassionate communities programme. This recognises that ompa55ionate, supportive arHJ strong communities make a significant contribution to enabling people to live with dying, death and loss and a Compassionate Communitie5 Lead was appointed to take forward this work. A successful bid to the Big Lottery has enabled a new community volunteering pro8ramme to be developed and new ￿latIOnShipS are being built with community groups. Improve and demonstrate our effettlveness The failure of the software developer to invest in the Hospice's electronic patient record system IEPRSI ICrossca¥el led to a decisionto move to a new EPRS. The new system is the same a5 the one used within the local NH5 Trust and has interoperability With the GP system. A ioint project with 5t Wilfrid's H05pice was initiated. with a go live date of September 2022. and some funding for equipment was secufed trom NHS England. irtual Trustee visits continued until July when the first on site y￿1t. since the pandemic. took place. On a bi-monthly basis two Trustees have Individual programme5 of actrvities to undertake ihroughout the day. The format for the Trustee's assessment is based on the Care Quality Commission's ICQCI key lines of enquiry IKLOEI and Trustee5 are asked to consider whether. during the visit. they were able to evidence safe, carin& respon5i¥e. effertive and welkled ser¥ice& Feedback is then shared wtth the clinical team. The Care Quality Commivion ICQCI suspended its routine inspertion programme in March 2020, in response to Covid-19, and has not yet resumed it. It has continued to use a mix of onsite and off-site monitoring to ensure the public have assurance as to the safety ènd quality of the care they re¢eive. In accordan￿ with this approach. the Registered Manager. Head of Intsgrated Clinical se￿iCes- Wellbeing and Head of Quality Improvement & Support Services met with the Hospice's CQC inspector for a direct monitoring call which covered the key lines of enqviry in detail. On 3 March 2022 the CQC carried out a review of the data availabie to it abolrt ihe Hospice ènd as a resuh. confirmed that there was no evidence to 5uEge51 an inspecrK)n was ￿quIred. Regrettably, the￿ are times when the Hospice's service did not meet the expectations of its SeNt￿ users and in 2021122 there were seven complaints. All complaints are ￿lStered with the Chief Executive and a omplaint handler identified. A thorough investigation is undertaken and a wrrtlen response provided to the complainant within 20 days. Responsibilities for following up on lessons learned are allocated to the appropriate manager. One of the key issues is ¢ornmuni¢ation be￿ten the different partners IhospTtal. GP, district nursin& adult social carel supporting patients and this is being followed up by the clinical directors. In this year. a new complaints module on Vantage-sentinel Ithe Hospice's incmlent and risk rnanègement plarforml was launched and this has provided an opporruntty to evidence learnin& monitor responsivene5S, escalate risks and provide assurances to the Board of Trustees and other key stakeholders. St Michael's Hospice Hastings and Rother Report ot the Trustees and strategic Yeport (continued) For the year ended 31 Marth 20Z2 A digltal transformation steering group was estsblished and a roadmap developed which aim5 to improve Systems and effectiveness, enable better information sharin& improve ac￿55 to information for patients and families, create new ways to engage with supporters and support digital income 8eneration. Develop and value our people In the last year progress has been.made with the OFganisational Development IODI strategy."Wh1l￿.'the pandemic has left a lasting legacy.. many"positives have come from new ways of working and the H05Pite has become a MO￿ flexible organisation for the people that work within it. Shariftg the. OD Strategy with the organisation was well-received and provided a clear focus orb how the Hospi￿ plans to continue to develop and value the workforce. The first Employee Satisfaction Survey in thFee years was issued and.an action plaTr.to address the issues raised ha5 been implemented. In 2021122. 36 new employees joined the Hospice. Recruitment continues to be very challengin& not just in health care roles, but also in Retail and other nonwled8e and expertise will be shared widely to empower other5. c. Support ¢ompassionatr communities The Hospice reco8nise5the communit￿5 ability to support those living with dyin& death and loss and will enhance thi5 by encouraging a compassionate community across Hastings and Rother. To sustain compassionate community. the Hospice will support those tbsest to the person living with the illne55 by providing prartical and emotional supkY)rt, and encourage neighbourhoods to build 5UPPOrtive networks to assist those Ca￿E1¥￿rS in their community. This will align with the new Integrated Care System. The Hospice's income generating activities (fundraisin& lottery and retail) will engage Communitie5. encourage wellberng and address issues such as social isolation and coping with loss. d. Influence ¢Ni¢ I1￿tutIonS Civic institutions such as schools. workplaces. and local councils can support people living with dying, death and loss and the Hospice will positively influence this whilst developing and maintaining relationships with these institutions. rts role will be to 5UPPOrt and adv￿. acting when invited to do so or when a need is identified. As a large local employer. the Hospice recognises its responsibility in supporting members of its own team affected by l¢fe lirnrf(ing illness. caring ￿sponSibl11t1eS and be￿aVeMent, and aims to be an exemplar organisation in this regard. To this end it is participating in the Hospice UK Compassionate Employers programme and will use the learning from this to 5UPPDrt other organisations in Ha5tings and Rother. In addition io these strategic priorities the Hospice will continue its EDI work by ensuring each department has an EDI objective and making Conscious IndUs￿n trarning part of mandatory training for all employees and Trustees. The Hospi￿ will a150 be presenting progress followin8 the EDI audit at the Hospice UK conference in November 2022. There is also a firm comrnitment to improve the physical enwronment for patients, families. visitors, employees and volunteers. The Board will conyder options, alongside financial and other implications of, this in 2022123. Plans to bring a public art trail to the streets of Hastings and Rotherwill finally corne to fruition in June 2022 when 30. five-foot rubber duck sculptures will adom the streets. Al the eryl of ihe summer, the duck5 will be sold, at auction. to help generate income for the Hospice. But raisbng fvnds is not the only ￿ason fr)r doing an art trail. Wellbeing 15 one of the core principles of the Hospice's care and support and an outdoor art trail extends this ￿yond the Hospice. By following the ducks. the aim is for people to find the opportunity to focus on their own wellbein& time to admire the sea. concentrate on breathing deeply- a moment to themselves or to enjoy with family and friends. take gentle exercise, or quiet time for reflection. The ducks are a150 conversation starters: through them the Hospice hopes to reach MO￿ people who may benefit from its care and support. A further aim is that the art trail will enable the Hospi￿ to integrate more with the local community that has so generously supported it for over 35 years. la St Ml¢haeVs H05plce Hastin￿ and Rother Report of the Trustee5 and strategic report lcontinued) Forthe year ended 31 March 202Z Statement of Tnrtee< responsibifities The Trustees {who are also Director5 of the charity for the purposes of company lawl.are re5ponsib.le for. preparing the Trustees, Report and the financi81 statements in accordance with applicable law and Unitèd KSnEdom Accounting Stsndards (United Kingdom Generally Accepted AccoLbnting Prarticel. Company law requires the Trustees to Prepa￿ financial statements foreach financial year whichgive a true and fair view.of the state of.affairs of the Charitab￿ company and the group and of the incoming ￿soUrCes. . and application of resources, including the income and expenditure. of the charitable group forthat period. In preparing these financial statements. the Trustees are required to- select suitable accounting policies and then apply them consistently. observe the methods and principles in the Charities SORP IFRS 1021; make jud8ements and estimates that are reasonab￿ and prudent- state whether applicable accounting standards have been followe(l. subject to any material departu￿$ disclosed andexplained in the financial ststements-.and prepare the financial statements on the going concem basi5 uTrless it is inappropriate to.presume that the charity will continue in business. The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial Statements comply wrth the Companies Art 2(KJ6. They a￿ also ￿POnSible for 50fegUardingthe"a￿ets of . the charitable company and the group and hence for taking reasonable steps for the P￿ventIon and . detectÉon of fraud and other irregularittes. In so far as the Trustees are aware." there is no relevant audit inf0m￿tIOn of which the Charitab￿ coMpan￿S auditor is unaware- and. the Trustees have taken all steps that they OLtght to have taken to make themselvès aware of any levant audit information and to establish that the auditor is aware of that informatton. The Trustees are responsible for the ftiaintenance and integrity of the charity and the financial information included on the charl￿S website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. Auditors Saffery Champness LLP We￿ auditors durin8 the period and their reappointment will be Considered at the annual general meeting. The Trustees have taken advantage of the small companIe￿. regime in preparing the TDJsteeg Annual. Report. On behalf of the board Mrs S C Munroe Trustee Date St Michael's Hospice Haslings aNI Rother l￿dePendent audilorf rewt to the membeys For the yearended 31 Marth 2022 Oplnio We have audfted the financral statements of St Michael's Hospi￿ Hastillgs and Rother (the 'parent charitable companVI and its sub￿diarIeS Ithe 'group'l for the year ended 31 March 2022 which comprise the group statement of financial activities. the group and charity balance sheets, the group cash flow statement and the notes to the financial statements. including signtficant aetounting policies. The financial reporting framewot* that has been applied in their preparation 15 applicable law and United Kingdom Accounting Standards, incbjding Financial Reporting Standard 102. the Financial Reporting Star•dard applicable in the UK and Republic of Ireland {United K¥￿￿0M Generalty Accepted Accounting Practice}. In our opinion the financial statements-. give a true and tsirview of the state of the affairs of the group and the parent charitsble company as at 31 March 2022 and of the group's incoming resources and application of resources, including tts income and expenditure. for the year then ended- have been properly prepared in accordance with United Xingdom Generally Attepted Accounting Practice.. and have been prepared in accordance with the requirements of the Companies Act 2¢￿. Basls for oplnion We conducted our audtt in accordance with International Standards on Auditing IUKI IISAS IUKII and applicable law. Our responsibilities under those standards are further described in the Auditorfs responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent charitablecompany in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK. including the FRCs Ethical Standard. and we have fulfilled our other ethical responsibilities in accordance with these ￿qUIreMents. We believe that the audit evidence we have obtained is svfficient appropriate to Provide a ba%$ for our opinion. Conclu5iQn5 relati￿ to going concern In auditlll8 the financial statements, we have concluded that the trustee￿ use of the going concern basis of accounting in the preparation of ihe financial statements is approprhite. Based on the work we have perfornied. we have not identified any material Un￿rtaIntieS relatirE to events or conditions that, individually or collectNely. may cast Significant doubt on the group or the parent charitable company's ability to continue as a going concern for a period of at least twelve rnonths from when the financial statements are authorised for issue. Our responsibilit￿$ and the ￿sponsibl11t1eS of the trustees with respect to going concern are described in the relevant sertions of this report. Other infomiation The trustees are responsible for the other infomiation. The other information comprises the information included in the annual repcrt, other than the financial statements and our auditorfs report thereon. Our opinion on the financial srdtements does not cover the other information and, except to the extent otherwise explicitly stated in our report. we do not express any fomi of assurance conclusion thereon. St Mlchael's Hospice Hastings and Rother Independent audltors, report to the member5 Icontinued) For the year ended 31 March 2022 Our responsibility is to read the other information and, in doingso, consider whether the other.information is materialty incon%5tent with the financial statementsor our knowledge obtained in the course of the audit or othenmise appears to be materially misststed. If we identffiy such material inconsistencies or"apparenr material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselve5. If. based on the work we have perfomied. we conclude that there is a material misstatement of thi5 Other infomiatFon- we are required to report that facL We have nothing to rewrt inthis ￿gard". Other matters prescribed by the Companies Act 2006 In our opinion. based on the work undertaken in the course of the audit: the rnformation given in theTrustees' Report whTch sncludesthe Directorg Rèport and the Strategic Report for the financial year for whith the financial statements aTe prepared is consistent.with the financial statements- and the Trustees. Report which includes the Director5. Report and the Strategic Report has been prepared in accordance with applicab￿ legal requirements. Matters on which we arn required to.r*Port.￿ eX￿ptIon In the light of the knowledge and unLlerstanding of the group and the parent charitable company and their environment obtsined in the course of .the audit.. we have not itlentified material misstatements in the Trustees, Report and Strategic Report. We have nothing to report in respert of the foltOV•ryAg matters where the Companies Art 2006 require us to port to you if, in our opinion.. adequate accounting records have not been kept by the parent charitable company. or returns adequate for our audit have not been ￿(eIVed from branche5 not visited by us- or. the parent charitable company financial statements are not in agreement with the accounting cords and returns: or certèin (lisclosures of tru5teeg ￿muneratIon specified by law are not made,. or we have not received all the information and explanations we require for our audit. Responsibilities of trustees As eX￿ained more fully in the Statement of Trustee< ftesponsibilitieson page IS, the trusteeslwho are also the directors of the parent charitable company for the purposes of company lawl are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary.to enable the preparation of the financial Statements that are free from material misstatement, whether due to fTaud or error. In preparing the financial statements. the trustees are responsible for assessing the group and the parent charitable company's ability to continue as a g04ng concern, thI￿lO$ln& as applicable, matters related to going concern and using the going concern basis of accounting unlessthe twstees either ir4tend to liquidate the group or the parent charitable compary or to cease operation5. or have no realistic alternative buttg do so. St Mbchael's Hospice Hasti￿5 and Rother Independent auditorf ￿portt0 the members (contlnued) For the yearended 31 March 2022 Auditorfs responsibillite5 tr the audit of the financial statements We have been appointed as auditors under the Companies Act 2(M)6 and report in accordance with regulations made under th¥t ACL Our objectives are toobtain reasonable assurance about whetherthegroup and parentfinantial statements as a whole are free from material misstatement. whether due to fraud or error. and to iSSLJe an auditorfs report that includes our opinion. Reasonable assurance is a hvgh of assurance. bLbt Is not a guarantee Ihat an audit condutted in accordance with ISAS IUKI will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are conssdered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities. including fraud, a￿ instances of rKin-complian¢e with laws and regulations. We (Jesign procedures ￿ line with our responsibilities. outlined above. to detect material misstatements in ￿sPect of irregularities. including fra￿1. The specffic procedu￿$ for this engagement and the extent to which these are capable of detecting irregularitie5, incluiling fraud are detsiled below. Identifying and assessing risks related to irregularities.. We assessed the sUS￿ptibIlity of the group and parent charitable companws financial statements to material misststement and how fraud might occur. including through discussions with the trustees. discussions within OLJr audit team planning meeting. updating our ￿(Ord of internal controls and ensuring these controls operated as intended. We evaluated rM)ssible incentives and opportunities for fraudulent manipulation of the financial statements. We identified laws and regulations that are of significance in the Context of the group and parent charitable company by di5CU$5ions with tru5tÈes and updatire our understanding of the sector in which the group and parent charitable company operate. Laws and ￿E￿latIonS of d1￿cl significance in the context of the group and parent charttable company include The Companies Act 2(YJ6 and guidance issued by the Charity Commission for England and Wales. Furtherthe group is 5ubiertto other laws and reBulations where the consequence5 of fion-compliartce could have a material effett on amounts or disclosures in the financial statements. through significant fine. litigation or restrictions on ihe group's operations. We identified the most significant laws and regulations to be those issued by ihe Care Quality Commission covering heafth care service5 and those issued by the G3￿blIng Commission coverin8 the requirements for running a lottery. Audit response to risks identified.. We conside￿￿ the extent of compliance with these taws and ￿gUlationS as part of our audit procedures on the related financial statement items including a review of financial statement disclosures. We reviewed the parent charitable company'5 records of breaches of hiws and regulations, minutes Df meetings and correspondence with rele￿ant authorities to identify potential material misstatements arising. We discussed the pa￿nt charitable companVs policies and procedures for compliance with laws and regulations with members of rnanagement responsible for compliance. During ihe planning meeting wtth the audrt team. the engagement partner drew attention to the key areas which might irwofve non-compliance with laws and regulations or fraud. We enquired of management whether they were aware of any instances of non-compliance with laws and regulations or knowledge of any actual, suspected or alleged fraud. We addressed the risk of fraud through management override of contro15 by testing the apwopriateness of purnal entries arKI identifying any significant transactions that St Michaefs Hosplce HastSnES arKI Rother Independent audltors, report to the Members Icontinued) For the year ended 31 March 2022. were unusual or outside the nornial course of business. We assessed whether judgements made in making accounting estimates gave rise to a possible indication of management bias. At the completion stage of the audit,"the engagement partnerfs review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance. with laws and regulations and fraud. The￿ are inherent limitations in the audit procedures described above and the further" removed non" comp14an¢e with laws and regulations is from the events and transactions ￿flected in the financial statements, the less Ilkely we would become aware of it. Also, the risk of not detecting a material- misstatement dLre to fraud is h￿her than the risk of not detecting one result'ing from error. as fraud,. may"" involve deliberate concealment by, for example. forgery or intentional misrepresentations, or"througFk collusion-. A fvrther description of our responsibilities Is avallable on the Financial Reporting Councifs websrte at.- www.frc.o auditorsres nsibi1it4es. This description fomis part of our auditorfs report. Use of our report This report 15 made solely to the parent charitable compan￿$ members, as a body. in accordance with Chapter.3 of Part 16 of the Companies Act 2rx16. Our audit work has been undertaken so that we miBht state to the parent charitable company's members those matters we are required to state to them in an auditorfs report and for no other purpose. To th.e fullest ext.erit permitted b'y law, we do. not accèp.t or assume ￿SponSIbl]Ity to anyone other than the parent charitable company and the parent charitsble companws members as a body. for our audit work. for this report. or for the opinions we have fom)ed. Cara Turtington Isenior S for and on behalf of Sa utory Auditor) ry Champness LLP Saffery Champne5s LLP Chartered Accountants Statutory Auditor5 71 Queen Victorba Street London EC4V4BE Saffery Champness LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006 ' st Michael's Hospice Hasti￿5 and Rother Consoltdated statement of financial a¢ti¥ities lincorpornting an income and ewditure account) For the year ended 31 Marth 2022 2022 Totsl funds 2021 Totsl funds Re5trirted funds funds Notss In¢ome and endowments from Donations and legacie5 2.478.335 136.140 2,615.475 2,608.674 Charitable artivities Hospice services 2.363.692 2.363,692 2.474.389 Subsidiaries, trading actr¥ities Other trading activities Investment income 1,453,651 293,690 111.218 1.453.651 293.690 111,218 1,378,770 117.896 117,829 Total 6.71x1.586 136.140 6.836.726 6.697,558 Expenditure on Raising donations Trading companies, costs 514,385 884,221 514,385 884,221 431.049 720,253 Charitable activitse5 Hospice services 5.514,014 41.OW) 5.555,094 5,391.091 Total 6.912.620 41.080 6,953,7 6.542.393 Met (Ios5esV8airts on investrnÈnts 14 19.6171 19,6171 432,005 Net lexpendituTe)fincome {221,6511 95.060 1126.5911 587,170 Transfers between funds 1,473 11,4731 Met movement In funds 1220.1781 93.587 1126,5911 587.170 Recondllatkon of funds Total furds brought forward 15,657,224 I1￿.441 15.763.665 15.176.495 Total funds carried forward 24 15,437.046 21)).028 15.637.074 15.763,665 continui￿ operations All incoming resources and ￿sOurceS expended arise from continuing actNities. The notes on pages 24 to 48 form part of these finar￿la1 statements. Page 20 5t Michaevs Hospio Haslings and Rother Consolidatsd and charity balance sheets As at 31 March 2022 Group 2022 Charity 2022 Group 2021 Charity Fixed assets Tangible assets Investments 16. 4,710.576 6.111.804 3.969.397 6.111.905 4,920.703 4.059.944 4,147.866 4,060,045 10.822,380 10,081,302 8,980,647 8,207.911 . Current assets Stocks" Debtors Cash at bank and in hand 18 19 17.226 15.643 1.599,665 . 4.457.154 55,329 319,595 6,803,209 1,443.102 6,396,688 4.632.795 5.290.521 6,072,462 7,178.133. 7,892.061. Creditors: amounts falling due wlthin one year 20 1475,8271 {326.6231 1395,1151 1261,9191 Net current assets 4.814.694 5.745.839 6,783,018 7.630J42 Total assets less current Ilabllities 15.637.074 15.827.141 15.763.665 .15.838,053 Net assets 15.637.074 15.827.141 15,763,665 15.838.053 ' Funds Unrestricted funds Restricted funds 15.437.046 2CO,028 15.627,113 2C(J,028 15,657,224 106,441 15,731,612 106,441 Total funds 15.637.074 15,827.141 15,763.665 15.838,053 The total income of the Hospice as an individual entity forthe year was £6,452,98912021- £6,390,938) and Its net deficit was £10.90912021- surplu5 of £662,313). A Statement of Financial Activities for the Hospice as an individual entity is not included using the exemption grven in section 408 of the Companies Art 2006. The financial statements were approved by the Board of Trustees on 20 Septernber 2022 and were signed on its behalf by MrsS C Munroe Trustee The note5 on pages.24 to 48 form part of these financial statemen Company number 01776496 Page 21 St Michael's Hospice Hastiny •nd Rother Consofkdated cash flow ststement For the year ended 31 Marth 2022 2021 Cash flows from O￿TatIng artivit Cash (used inllgenerated from operations 1192.4101 547.377 Nèt fash (used Inllprovtded by operatlng artivilies 1192.410) 547.377 Cash flows from Inyestingartl¥lths Purchase of tangib￿ fixed assets Purchase of fixed asset investments Proceeds from sale of fixed assets Proceeds from sale of investments Investment incorne 127.953) 11,881,283) {76,5221 13,140.7411 21 1.840,520 117.829 366.926 111.218 Net cash used In In¥estlngaaivfties 11.430.884) 11.258,8931 cha￿ In cash and ¢ash e4ul¥alents In the reporting period 11.623.294) 1711.5161 Cash and cash equivalents * the tse￿nn1Thg olthe reporting period 6.855,844 7.567,3EQ Cash and ￿5h equivalents at the end of the rtportir8 period 5,232,550 6.855,844 The notes on ￿geS 24 to 48 form part of these financial statements. Page 22 St Michael's Hospl¢e Hast1￿ and Rother r4otes to the thish flow statement For the yearended 31 March 2022 Recondllatlon of net income to net cash Ilow 2022 2021. Net (expendlture)/Tncorrie for the reporting perfod (asyer. the statement of financial arti¥itie5) Adlustments for. Depreciation charge5 Lossesllgainsl on investments Lossllprofitl on-disp05alof fixed assets Investment income. Decrease in stocks Ilncreasel/dec￿ase in debtors Increase in c￿dItorS (126.5911 587,170 237,808 9.617 1432,005J 389 1117,8291 6,084 195,984 23,513 1111,2181 38.103 {320,9051 80,712 Net Cash l•uffiow)Ilnflow from operating actl¥ltles 1192.4101 547,377 Analysis of cash and cash equivalents At31. March 2021 . .At 31 .March 2022 Movement .Cash at bank and in hand InvestmeM.cash 6.803,209 52,635 12.710,4141 547.120 4.632,795 599,755 6.855.844 {1.623,2941 5,232.550 Page 23 St Michael's Hospiee Hartiry5 and Rother Notes to the financial statements For the year erKled 31 Mar¢h 2022 Statutory iThform*i 5t Michael's Hospice Hastings and Rother is a private charitable company limited by guardntee. registered in England and Wales. The companvs regIste￿d number and registered office addres5 can be found in the reference and administrdtive details in the Report of the Trustees. Aecountlng policies Ac¢ountlng convention The financial statement5 of the charitable company, which is a public benefit entity under FRS 102, and group have beert prepared in accordan￿ wtth the second edition of the Charitie5 SORP {FRS 1021 "Accountin8 and Reporting by Charities= Siatement of Recommended Practice applicable to ch8rities preparing their accounts in accordan￿ with the Financial Reporting Standard applicable in the UK and Republic of Ire13nd IFRS 1021" Financial Reporting Standard 102 Yhe Financial Reportingstandard applicable in the UKand Republic of Ireland- and the Companies Aci 2006. The financial statements have been prepa￿d under the historical cost convention, with the exception of investments whKh are indudeil at rnarket value. Goin8 toncem At the time of approvin8 the financial statements. the trustees have a reasonable expectatTron that the Charity ha5 adequate resourcesto continue in operational exÈstence forthe foreseeable future. Given the appropriate consideration of risks and mitigation actions that have been uThJertaken throvghout the Covid-19 pandemic, togetherwith a review of the Char￿$ financial position, level of reserves and future strategic plan5, the tnjstees continue to adopt the going concern ba515 of ac￿Un11ng in preparing the financial statements. Incoming resources All incoming resources are included on the Ststefflent of Financial Activities when the charity is legalty entitled to the income and the amount can te quantified with reasonable accuracy. 2.3.1 Gifts in kind Gifts donated for resale a￿ included as income when they a￿ sold. Donated items for use in the Hospice are valued at a reasonable approxTrmation to market value. Donated facilities a￿ included at the value to the charity where this can be quantified and a third party 15 bearing the cost. No amounts are induded in the financial statements for Servi￿5 donated by volunteers. 2.3.2 Fees. contributions and grants These comprise arnounts receivable during the year. 2.3.3 Voluntary income VolLEntary income represents amounts recer¥ed during the year. Pale 24 St Mlchael's Hospice Hastln8s and Rother Notes to the finan¢ial ststements Itontlnuedl For the year ended 31 March 2022 Accounting policies {continued) 2.3.4 Legacies Reversionary legacies are .accounted for on receipt. Pecuniary and residuary legacies are accounted for at the earlier of receipt of the legacy or the point at which the final accounts of .the estste are agreed by the chartty. In the event that legacies are settled after the accounting year.." end they are included in the accounts provided the charity was certain of.the amounts to be distributed at the balance sheet date: The hospice has received notifbcation of a number of legacies which ha.ve not been included in these accounts bècause they.are'not certain in"value or certain of re￿ipt. 2.3.5 Investment income Investment incorrie comprises amounts receivable during theyear. 2.3.6 ' Shop income Shop income generated by one of the trading 5ubsidiarie5 represents net invoiced salesnf goods, excluding valued added tsx.. 2.3.7 Lottery income Lottery income generated by.one ol the trading substdiaries represents ticket sales received in respert of lotteries held during the year and strateh card sales. Income from tickets sold I￿adVan0 of a drdw being held ss carried lorward to the period in which" the draw takes place. 2.3.8 Debtors Income resources ￿e0gnIsed in the year but. not received at the year end are included within debtors unless there are doubts as to the estimation of value or likelihood of receipt. Resources expended Liabilities are recognised as.expenditure as soon as there is a legal obligat￿n or.construttNe. obligation committing the charity to that e¥pendttiJre, it is probable that a transfer of economic beT)efit5 will be required in settlement and the 6rnount of the obligation can be measured rel¢ably. Expenditure is accounted for on an accnjals basi5 and has been classified under headings that aggregate all c05t related to the category. Where cost cannot be directly attributed to particular headings, they have been allocated to activities on a basis conshstent with the use of resources. Allocation and apportionrnent of costs Where costs cannot be directly attribvted to particular headings they have been allocated to attivities on a basis consistent with the use of resource5. PoBe 25 St Mlchaeys Hospice Hastin￿ and Rother Notes to the flnanclal statements Icontiwed) For the year ended 31 Marth 2022 Accounting policie5 {continued) Tangible fixed assets Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life. Freehokl property Fixtures. fitlings and equipment Motor vehides 2% and IO%on ¢ost IS% to 33% on cost 25% on cost Where e￿enSiOnS and improvements have been madetofreehold property. depreciation has been Charged over the remaining lrfe of the underlying property. No depreciation is provided on f￿hold land. Investments Listed invest￿nts are indude(l at market value at the year end. Gains and losses on disposal and revaluation of investments are charged or credited to the Statement of Financial Artrvities. Stocks St￿kS are valued at the lower of cost and net realtsable value. after making due allowance for obsolete and slow moving items. Donated items are not¥alued until sold. Consequently. novalue is attributed totheirstock carylng value. as this cannot be determined with certainty vntil sold. Leasing commltments OperatinB leases and the payments made under them are charged to the profit and loss account on a straight line basis overthe lease term. 2.10 Taxation The charity is partyto a group registration for VAT purposes and is therefore able to recover some but not all of the VAT the charity incurs. Irrecoverable VAT is charged as a single itern in the Statement of Financial Activitie> The chariry is exempt from cor￿ratIOn tax on its Charitab￿ activities and therefore no provlsion has been made foreithercorporation tax or deferred tax. Where a trading subsidiary is reBiStered for VATthe expenditure is shown exclusive of VAT. Both tradin8 subskliaries have entered an agreement to covenant their taxable profits to the parent undertaking and therefore no corporation tax provision is ￿quIred. PaBe 26 St Michael's Hospice Hastings and Rother Notes to the linancial s&itsments (continued) For the year ended 31 March 2022 Accounting policies (continued) 2.11 Fund accounti In the Trustees, opinion. with certain exceptions. the incoming resources and resource5 expended are all derived for the benefrt of running the Hosphce. Therefo￿. the Trustees choose to classify all income and expenditure.as un￿strIcted. In certain instances, funds may b'e designated by the Trustees for specific purposes. whe￿ funds are recefved for a ￿gnIficant and specific project these a￿ allocated to restricted funds. These fiJnds are then used to meet the capitsl costs of that specific project.by viay of an annual depreciation charge set" against the restricted fund. Any funds received in excess of the capital requirements of the proiett will be used to help wtth the associated future r.unninE Ctrsts of. the project.. Other restrirted furnls are those funds donated for purposes specifted by the dorn)r and these are tracked and expende(i in accordance.with.the donors, wishes. 2.12 Penslon costs and other post.retirenRnt benefits The charitsble company operates a defined contribution pension scheme. Contributions payab to the charitable compan¢s pension scherne are charged to the Statement of Financrdl A'cttvities "in the period to which they relate. 2.13 Critical estimates and judgements Management have made certain estimates and ju(igements in the p￿paration of the.finari¢ial statements of the Hospice. Estimates and judgements are continualty evaluated and based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the Circumstan￿5. Amhough these estimates are based on management's best knowledge of the amount. events or actions, actual results may differ from those estimates. The Trustees consider the evaluation of the useful economic life of fixed assets and the fijture receipt of legacy debtors at the year end to be the areas of judgement with a significaDteffect on the financial statements. Pa8e 27 st Midwl's Hosi*¢e Hast1￿5 and Rother Notes to the Ilnan¢lal glatements (contlNed) For the year ended 31 March zozz l>onations arKI le8a¢ies 2022 2021 Donations and yft5 In memoriam Regular giving and Gift Legacies Grants receNed 450.098 208.035 100,289 1.510,7 345,353 439.308 230,343 96,131 645,865 1.197,027 2.614.475 2.608.674 2022 2021 Grants from govemment sources received, included in the above, are as follows: CJRS Furlough irKome Sector support Brant Ivia Hospice UK) Sector support 8rnnt (via CCGI 16,770 220,336 61,841 1.056,388 76.798 Trading a(tlvhies 2022 2021 Tradire subsidiaries Lottery income Retail income 919,526 534,125 994,999 383.771 1,453,651 1,378,770 2022 2021 01hertradi￿ athvities Fundraising events Arthur Easton hall hire Coffee shop and catering Sundry income 265,125 2,725 2.096 23,744 105,703 90 12,098 293.690 117,896 Page 28 St Michael'5 H05pice Hastiny and Rother Notes to the financial ststements (¢ontinued) For the year ended 31 March 2022 Investment Income 2022 Z021 Income fro￿ UK listed investments Deposit account interest Rents 80,137 25.381 5.7CQ 5,7QO 111,2.18 117,829 Inwme from charitable activit 2022 2021 Grants Polliative care fees Patient income Rents 2,362,783 2,316.29) 157,823 276 2.363.692 2,474,389 2022 2021 Grants from government sources received, included in the above, are as follows= Hastings and Rother CCG 2.362.783 2.316,290 Pay 29 St Mithael's Hospice Hasti￿ and Rother Notes to the financial statements (continued) For the yearended 31 Mar(h 2022 Rais1￿ funds Trading companie< Raising donations Total Z022 Staff costs Cost of sales Lottery Prizes Premises Depreciation Otherdirert costs 394,273 396,812 94,534 193,953 144,535 31,658 22,729 791,085 94,534 193,953 160,492 44,768 113,774 15,957 13.110 91,045 514.385 884,221 1,398,6C6 2021 ¢ompamti% Trading companies. costs Raising donation5 Total 2021 Stoff costs Cost ofsules Lottery Prizes Premises Depreciotion Otherdirect costs 358.487 347,380 30.875 156.788 107.190 33.448 44.572 705,867 30,875 156,788 117,339 49,386 91,047 10.149 15,938 46,475 431.049 720,253 1,151,302 pa￿ 30 St Michael's Hospice Hastings arA Rother Notes to the financial statements {contlnued} For the year ended 31 Mayth 2022 Charitable actlvltie5 costs Support costs.. {Note 10) Total Z022 (Note 91 Hospice services Other 4.621.112 811,418 5.432,530 122,564 4.621,112 933,982 5.555.094 Support Dirnrt costs INote 91 Total 2022 (Note 10) Hospice services Other 4.524,189 789.873 77.029 5.314,062. .. 77,029 4,524,189 866,902 5,391.091 ..Dirert costs of tharitsble artivities 2022 Z021 Staff costs Clinical costs Training costs Premises Depreciation Other direct costs 3,6C(1.584 342,012 50,298 223,536 183.658 221.024 3,535.687 406,248 30,130 142,182 223,268 186,674 4,621,112 4.524,189 Page 31 St Michael's Hospice Hast1￿$ and Rother Notes tothe flnandal statements (continued) For the year ended 31 Marth 2022 Support (osts Support costs are a5 f￿￿)W$. 2022 2021 Staff costs Rate5 and water Insurance Light and heat Telephone Postage. stationery and IT Sundries Property rental Repairs and maintenance Freehold property depreciation 759,929 354 2,215 3,886 1,628 7.086 16,344 4,526 6.059 9.391 752.311 451 1,868 2,416 1,689 5,653 3,561 6,776 3,732 11,416 811,418 789,873 2022 2021 Bank char&es Legal and professonal fees Auditors, remuneration AudTrtors' femuneratiort in respect of accountanci and otherseFViCeS 6,634 81.990 17,710 6,976 45.314 10,750 16,230 13,989 122,564 77.029 ii. Net income/expenditure 2022 2021 Audr(ors' remuneration for Charity audit Currerrt year Prior year Auditors, remuneration in respect of accountancy and othLY services. including the audit and accountancy fee5 of subsidiaries Depreciation Lossllsurplus} ondisposal of fixed assets 13.150 4.560 10,750 16.230 237.808 13,989 284.071 389 Pap32 St Mi¢hael's Hospice HastiTr85 and Rother Notes to the financral statements Icontinuedl For the year ended 31 March 2022 12. Tntstees. remunerntion and benefrts There was no Trusreeg remuneration or other beneffts for the'year ended 31.March 2022. norfor the.year ènded 31 March'2021. Trustees. expeiise5 No èxpenses were reimbursed to anyTrustee in theyear to 31 March 2022 nor for the.ye.ai ended 31 March 2021. 13. Staff costs 2022 ' 2021 ' w.ages and salaries Social security costs Other pens40n costs Other staff costs 4,407,633. 380.011 324,949 . 39,005 4,309,770 361,232 310.928 4,919 5,151,598 4,986,849 The average Monthly number of employees {based on head countl during the year wa's:. 2022 Number 2021 Number" Nursing and medical Catering and housekeeping Maintenance Training Fundraising Administration Bereavement Lottery Retail 99 Is 103 23 24 17 18 183 193 P¥e 33 st Mi¢haefs Hospke HastirE5 and Rother Notes to Ihe Ilrhincl•l statements (contibwedl For the year eb7ded 31 Marth 2022 13. Staff costs Icominuod) The numbers of ernployee5 whose emoluments forthe year fell within the following band5 were: 2022 Number 2021 Number £60.000 to £69.999 £70.000 to £79.999 £80.OCKI to £89.999 £90,WO to £99,999 £100￿ to £109,999 The key management personnel comprise members of the Leadership Team. The total employee benefits of the key management personnel of the charity were E597.$6412021 - £540.4621. 14. Gains11kn55esl on ift¥estn*Dts 2022 2021 Realised gains Unrealised gains/ll¢)sse5} 68.994 178,6111 31,304 4W.701 19.6171 432.005 Page 34 St Michaevs Hospice Hastln2s and Rother Notes to the finan¢ial statrments Ic¢>nt¢nued) For the year ended 31 March 2022 15. Comparatives forthe statement of financial aciiviti 2021 Totsl fun.ds. funds nds Income and endowrnents fvom .Donations and legacies 2.522.572 86.102 2.608.674 Charltable artivities Hospice services 2,474.389 2,474.389 Subsidiaries. trading actNittes Other trading activities Investment income 1.378.770 117,896 117.829 1,378.770 117,896 117A29 Totsl 6.611.456 86.102 6,697,558 . Ex"penditure on Raising donations Trading companies, Costs . 431.049 720,253 431.049 720,253 Charfta'ble artfvltles Hospice seThices 5.377.619 13.472 5,391,091, Total 6,528.921 13.4n 6.542.393 Net {105ses)18ains on investments. 432.(X)5 Net income 514.S40 72.630 587,170 Transfers between funds 17.9261 7,926 Net movement in funds 506.614 80.556 587.170 Reconciliation of funds Totsl funds brought forward 15,150.610 25.885 15,176,495 Total funds carrled forward 15,657.224 106,441 15,763,665 . Page 35 5t Mithael's Hos&¥ce Hastlw and Rother Notestothe financial statements Icontlnued) For the year ended 31 Marth 2022 16. Tangible f￿ed a55ets Group Freehold property Flxtuos ffttings and equipment Mot¢x vehtdes Tota15 under At l April 2021 6,378,309 1,198.154 161,506 7,737.969 Additiorns Transfers Disposals 24.453 27,953 14511 14511 At 31 MaT(h 2022 6,378,3CP3 1.222.156 161,506 7.765.471 Depreciation At l April 2021 1,626.077 1,056.715 134,474 2,817,266 Charge foryear Eliminated on disp)sal 166,127 57.657 11791 14.024 237.808 11791 At 31 Ma¢¢h 2022 1,792,204 1,114.193 148,498 3,054,895 Net t>ook value At 31 March 2022 4.586,105 107,963 13,008 4.710.576 At 31 March 2021 4.752,232 141,439 27,032 4,920,703 Included in freehold property is land of £152.76112021- £152.7611 which is not depreciated. Pay 36 St Michaevs Hospke HastlnRs and Rother Notes to the financial statements {continued) For the yearended 31 March 2022 16. Tangible fixed assets {continued Charlty Fixtures ffttings and Motor vehicles Tota15 pvoperty under Cost At l April 2021 . 5,41.2.821 1.173.267 121,81.4 .6,707,902 Additions Transfers Disposals . 3.5Th) 24,453 14511 At 31 March 2022 5,412.821 1,197.269 121.814 6,735.404 Depreciation At l April 2021 1.431.518 1.033,736 94.782 2,560,036 Charge for year Eliminated on disposal 135,746 56.380 11791 14,024 206,150 11791 At 31 March 2022 1.567.264 1.089,937 108,806 ' 2,766.007 Net book value At 31 March 2022 3,845557 107.332 13,008 3.%9.397 . At 31 March 2021 3,981,303 139.531 27,032 4,'147,866 Page 37 St Mlchael's Hosplo Hastlngs and Rother Notes to the financlal statements {contlnued) For the year ended 31 Marth 2022 17. Fixed assrtitwestrnents Gr(yJp Listed Cash held for investment Totals Market value At l April 2021 Additions Disposals Revaluatior Cash movement 4,Th)7.309 1.881.283 {297.9321 {78,6111 52,635 4.059,944 1.881,283 {297.9321 178,6111 547,120 547.120 At 31 March 2012 5.512.049 599,755 6,111,804 t4et l)ook value At 31 Maffh 2022 5,512.049 599,755 6,111,804 At 31 Marth 2021 4.C07,3C8 52.635 4.059.944 Charfty Shares in Èroup undertakin8S Listed Cash held Totals Marketvalue At l April 2021 Addrtions Disposals Re¥aluations Cash movement ioi 4,CO7.309 1.881.283 1297.9321 178.6111 52.635 4.060,045 1,881,283 1297,9321 178.6111 547.120 547,120 At 31 March 2022 ioi 5.512,049 599.755 6.111,905 Net book ¥alue Ai 31 March 2022 ioi 5.512.049 599.755 6,111,905 At 31 March 2021 ioi 4.tX17.309 52.635 4.(KO,045 There were no investment assets outside the UK. Page 38 St Michael's Hospice Hasliny and Rother Notes to the financial st*ements (continued) For the year ended 31 Marth 2022 17. Fixed asset Investments (contifiued) The tharity holds 20% or more of the sh.are capttal of the following companies- Compary Cwntry of incorporation Shares Class St Michael's Hospice (Retail) timrted-0241V1963 England & Wales Ordinary St Michaef5 Hospice Lottery LTrmtted-03351501 England & Wales Ordinary loo% St Michaevs Hospice IRetaill knmite(t operates rnany charity shops. St Michaef5 Hospice Lottery Limited supports the Hospice throu8h fundraising large￿ from the operatron of a lottery. Bot'h companies covenant their taxable profits to the parent company where possible." A summ.ary of the result of these undertaknngs is set out beknw: St Michael's Hosplce {Retrill Limited 2022 St Michael's Hosplce Lottery Limited 2022 2021 2021 Turnover Cost of sales 516.745 {94,5341 153.582 {5.4261 919,410 1193,9531 994,089 1182,2371 . Gross profft 422.211 148.156 725,457 811.852 Administrative expenses Other income {555,2751 17.381 1453,488} 230,190 1115,3431 116 1109,2921 910 Net profftll105s) 1115.6831 {75.1421 610.230 703,470 Assets- fixed and current Liabilitles 806,407 1996,447) 1,039.862 11.114.219) 151.530 1151,4561 155,615 1155.5411 1190,040} 174.3571 74 74 Share capital Retained reserves ioj 174.4571 1190.1401 73 73 1190.0401 {74.3571 74 74 Punts fallint due after one year Amount5 owed ￿ group undertakings 852.C(Kl 852,1￿) 1.599.665 1.443.102 Amounts falling due after more than one year relates to a loan to St Michael's Hospice (Retail) Limited, in older to purchase a warehouse. Interest is being charged at 2.S% per annum, with £21.30012021- £21.3CQI being received during the year. There are no fixed tem)s for repayment but the Trustees have grven assurances that repayment won't be sought before January 2024. Pa8e40 St Michael's Hospice Hastiw and Rother Notes to the financial statements (continued) Forthe year ended31 Marth 2022 Creditors Amounts fallir¢ due within one year Group 2022 . 2021 Trade creditors Pension creditor Lottery ticket sales paid in advancè Other creditors. Accruals and deferred income 169,255 206.659 43,643 112,724 2,238 29.851 108,648 6,456 144.977 475.827 395,115 Charity 2022 2021 Trade crediÈors Pension creditor Other creditors .Accruals and deferred inc(>me 140,394 46,491 5,152 134,586 187,019 653 326.623 261.919 P•8e St Mithaevs Hospice Hastir￿ and Rother Notes to the financial statements {tontinuedl For the year ended 31 Marnh 2022 21. Operating lease u)mmitments Mlnlrnum lease p•ffj*nts under nonvcancellable operating leases fall due as follow5: Group 2022 2021 Expiring: Within one year Between one andfive years In more than fveyears 55.215 36.438 60,510 52,234 91.653 112,744 Charlty 2022 2021 Expiring: Within one year Between one ar￿ five years In more than fiveyears 19.633 16,622 20,727 14.336 36.255 35,063 22. Pension tomfflltments For oualfying St Michael's Hospice HastinES and Rother stsff. partitipation in the NHS Superannuation S(heme provides benefrts based on final pensionable pay, a defined benefit stheme. The contrbutions paid by the charity in ￿SPect of the NHS Superannuation scheme a accounted for as if the scheme was a defined contribution scheme as the charity is unable to identify its share of the underlying assets and liabilities in the scheme. The Government Actuary* using the Projected Unit Method. determine5 contributions charged to the Statement of Financial Activities. For staff that do not qualify to join the NHS Superannuation Scheme, the charity operates two further defined contribution pension schemes. ContrTrbutions are charged to the Statement of Financial Activities in the peTicKI to which they ￿lated. The total contributKJns paid to both pen%on schemes for the yearended 31 March 2022 a￿ shown in note 13. The amount outstanding at the balan￿ sheet date is £46,49112021- £43,643>. Pay42 St Ml¢hael's HOSPI￿ Hastings and Rother Notes to the financial statements (contlnuedl iy For the year ended 31 Majrh 2022 23. Movement in fun¢ts Currentyear At Net movement Transfers. At l April 2021 In fvnds between funds 31 March 2022 Unrestricted funds General fund Fixed assets Strategic Development fund Contingency fvnd 5.336,522 4.920,702 2,1￿,(M￿l 3.41XI,CKK) {20,8711 12(MJ.7801 5,326,470 4,710,576 2,lJOO,(X)o 3,400,CQ) 15.657.224 1221.6511 1.473 15,437,046 ' Restricted fund5 Rolling equipmen.t replacement Other funds Systmone Implemenlation Big Lottery Compassionate Communwties 52,987 53.454" 30.441 15.0061 25.730 11401 11.333J 83,288 ' 47,115 25.730 43,895 95,060 43,895 2CrfJ,028 106.441 {1,473) Total 15.763.665 1126,5911 15.637,074 Net movement in fund5. Included in the abo* a￿ as follows: Incoming Galns and losses Movernent in funds expended Ufirestricted funds Generalfund Fixed asset fund 6,7￿.586 {6,711,840) 120).7801 19,6171 120.8711 {200.7801 6.7rxJ,586 16,912,620) 19.6171 (221.6511 Re5tTirted funds Rolling equipment replacement. Other fund5 Systmone Implementation Big Lottery Compassionate Communities 42.649 IS.468 25.730 112.208) 120.474) 30.441 15,0061 25.730 52,293 18.3981 43,895 136.140 141,0801 95.060 T¢)tal funds 6.836.726 16,9S3.7CK)I 19,6171 1126,5911 PaEe43" 51 Michaevs Hospice Hastin￿ and Rother Notes to the financial statements {continued) For the year ended 31 March 2022 Movement In fvnds Icontlnued) Compar*i¥e year At Net m0vert￿nt At l Apnl 2020 In funds between fund$ 31 March 2021 Unrestri(ted funds General fvnd Fixed assets Strategic Development fund Contingency fund 4.821,948 5.128.662 2.(￿j.c 798.611 1284,0711 1284,0371 76,111 5,336,522 4,920,702 2.000.0 3.2rA).(xxi 2(K),tXX) 3,4C￿.ocA) 15,150.610 514.540 17.9261 15.657.224 Restrkted furMIs Rolling equipment replacement Other funds 12.251 13.634 38,786 33,844 1,950 5,976 52,987 53.454 25,885 72,630 7,926 106.441 Total 15,176,495 587.170 15,763,665 Net movement in funds, included in the above are as follows: In¢omir Gains and Movement in lunds Unrestrirt¢d fvnds General fund Fixed asset fund 6,611.456 16.244,8501 1284.0711 432,W5 798,611 1284,0711 6.611.456 16.528.921) 432.LY)5 514.540 Restrlrted funds Rolling equipment replacement Other funds 44.436 41.666 15.6501 17.8221 38.786 33.844 86.102 113A721 72,630 Total funds 6.697,558 16,$42,3931 432.(M)5 587,170 Page 44 5t Mlchael's Hospke Hastlngs and Rother Notss to the financial statements l¢ontsnued) For the year ended 31 March 2022 Movement in funds (conlinued) . Unrestricted funds The Trustee5 haye applied the funds as shown above..Of the available fvnds held at the year-end. £4,710.57612021- £4,920,703) 15 held in the form of land and buildit)gs and other tangible frxed assets. Contingency funds are cakulated each year according to the ￿ServeS policy set in'the Report of the Trustees. This policy identifies the cash resource5 needed to Sustain twelve months of net running costs in the event of a severe downturn ITh voluntary income. The Trustees ha¥e.retained a designated Contingency fund of £3.4CL).(K)012021- £3.41xj.(￿1. Thp Trustees have retained a designated Strategic Development fund of £2.￿￿,[￿1) 120"21.'_ £2.000.ocxI). The general fund at the yearond of £5,326A7012021- £5.336,5221 represents funds av8ilable to the Trustees to pursue and further the activities of the Hospice. Restricted funds Rolling Equipment Replacement-fijnds reteNed to purchase new or upgrade Èxisting équipment". are recorded within the Rolling Equipment Replacement fund. Funds re￿iVed during.the year.. were all fully expended in accordance with their restriction. unless stated otherwise. The.: additional balance carried fopmard on the fund represents fixed assets held on the balance sheet. Other funds"_ fijnds received for specific services or prOVi￿On of smaN equipment where the balance remaining at the year end is less than £5,(MXI. Transfer5 Out of restricted funds ￿present unspent. balan￿5 released from restriction in accordance with the terms of the omginal donations. . Page.45 St Mlchael's Hospi(* Hastirys and Rother Notes to the flnanclal statements (contlnued) For the year ended 31 Marth 2022 24. Net Assets by fvnd- ¢urrent year Group Restricted fund5 Totsl funds funds Tangible fixed assets Investments Current assets Current liabil￿e$ 4.710,576 6,111.804 5.090,493 1475,8271 4.710,576 6,111.804 5.290,521 1475,8271 2CI),028 15.437.046 21M),028 15,637,074 Char Restriited lunds Total funds funds Tangibte fNed a55ets Investments Current assets Current liabilities 3.969.397 6.111.9)5 5.872,434 1326,6231 3,969,397 6,111,905 6.072,462 1326,6231 2CK).028 Net assets 15,627.113 2CQ,028 15,827,141 Net assets by fund-comparatlve year Group Restrirted lunds Total funds Tangible fixed assws Investments CLtrrent a55ets Current liabilities 4.920.703 4,059.944 7.071.692 {395.1151 4.920,703 4,059.944 7,178.133 1395,1151 106.441 Net assets 15.657,224 106,441 15,763,665 Paee46 St Mithael's Hosplce Hastings and Rother Notes to the financial ststernents {continuedl For the year ended 31 March 2022 24. Net assets by fund- comparative year Icontinuedl Charity Total nd5 funds Tangible fixed a55ets Investments Current assets Current liabilitie5 4,147,866 4.(￿,045 .7.785,620 1261.9191 4,147,866." 4,060,045 7.892,061 4216,9191 106,441 Net assets 15.731.612 i(￿,￿141 15..838.053 25. CoDtln8ent IlabNlties There were no contingent liabilitie5 as at 31 March 2022 nor at 31 March 2021. 26. Capitsl commitments The charity hall no building commitments as at the year*nd12021- £nill- 27. Contingent assets The charity has been notified of one leEacy12021- one) which 15 subject to a life tenancy or other such condition. The total amount of the legacy is estimated at EllX),(>)012021- £109,000).. It has not been included in the accounts. St Mi¢haefs No$￿(e H4stIn￿ and Rother Notes to the financial statements (contlnuedl Ftsr the year ended 31 March 2022 28. The charity had the followKg transartions with its subsidiary COrnPaDies durin8 the year." St Michaeys Hospice IAetsil) Limited St Mlchael's Hospice Lottery Limited Z022 2021 2022 2021 Incorne durinstht year 360,575 272,867 709,339 799,284 Expendi￿re durfng the year Balan¢¢ r¢¢ei¥able *ihe year end 961169 1.089.471 37.530 38.470 Incorne is generated from a donation of profits or a recharge of costs incur￿d on behalf of the subsidiaries. Expenditure Is the Teimbur5ement of reasonable costs irKurred bythe 5ubsKliaries in the course of carying out their business. There a￿ no other transacttonswith related parties to disclose. PaEe 48