Company Registration No. 01776496 (England and Wales) Registered Charity No. 288462 St Mi¢hael's Hospice Hastings and Rother Report of the Trustees and consolidated financial statements for the year ended 31 March 2023 *ACFQ4427V• 0&11112023 COMPANIES HOUSE St Ml¢hael's Hospice Hastings and Rother Contents Page Reference and administrative information Report of the Trustees and strategic report Report of the independent auditors 20 Consolidated statement of financial activities 25 Consolidated balance sheet 26 Consolidated cash flow statemenl 27 Notes to the financial statements 29 St Mlchael's Hospice Hastings and Rother Reference and administrative infomiation Company infomiatlon St Michael's Hospice Hastings and Rother. a registered charty and a company limrted by guarantee, was established on 8 December 1983 and formalty opened its service in April 1987. Its Articles of Association were lasl revised and agreed on 27 January 2012. The Trustees of the charty (who a￿ also D1￿ctOrS of the company) are drawn from the local communty. 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 (Chair) Tony Boardman Simon Davis Dr Peter Dewhurst Kerry Gent￿Man Nigel Kirby-Green Geoff Longmire lan Menzies Magnus Spence Linda Stevens James Thomas (resigned 31 March 2023) (Vice Chair) (appointed 30 May 2023) (wi￿ Chair) Company Secretary Vinyo AKlam Darren Mackenzie (to 4 April 2022) (from 4 April 2022) Chief Executive Dr Karen Clarke Leadership Team Vinyo Aidam Darren Mackenzie Finance and IT Director (to 4 April 2022) Finance and IT Director (from 4 April 2022) Dr David Barclay Medical Director (from 3 October 2022) Dr Declan Cawley Medical Director (to 3 October 2022) Perdits Chamberlain Income Generation Director Evetyn Prodger Clinical Sep4ices Director Rebecca Tiberini Strategy and Integration Director (to 31 October 2022) Organisational Development Director Caroline White Page I St Michael's Hospice Hastings and Rother Reference and administrative inforniaiion Icontinued Registered infomiation Registered charlty name Sl Michael's Hospi￿ Hastings and Rother Charity number 288462 Company registration number 01776496 Registered office 25 Upper Maze Hill St Leonards on Sea East Sussex TN38 OLB Professional advisors Auditors Saffery Champness Chartered Accountants 71 Queen Victoria Street London EC4V 4BE Bankers Lloyds Bank PIC 17 Wellingion Place Hastings East Sussex TN34 1 NX Solicitors Gaby Hardwicke 34 Wellington Square Hastings East Sussex TN34 1PN Investment advisors Rathbone Investment Management 8 Finsbury Circus London EC2M 7AZ Pale 2 st Mlchael's Hospice Hastings and Rother Report of the Trustees and strategic report For the year ended 31 March 2023 The Trustees present their report and accounts for the year ended 31 March 2023 including the Strategic Report for the company. These accounts compty with the charity's goveming document, whtch states that the charity'5 objective is to promote the relief of sickness. the Companies Act 2006, the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and with the Charities SORP (FRS 102). St Michael's Hospice is regulated by the Care Qualty Commission (CQC) which is the independent regulator of all health and social care services in England. 1. OBJECTIVES AND ACTIVITIES 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 as the Trustees shall from time to time think frt and, in particular (but Wtthout prejudice to the generality of the foregoing), to provide services so as lo support the physical. psychological, social and spiritual needs of those affected by life-limiting illnesses.. 1.2. Main activities of the charity undertaken in relation to those purposes The overall aim of St Michael's Hospice is to enable people (over the age of eighteen) living with serious, adVan￿d illness to live as fully as possible and to provide compassionate, expert care at the end of life. The service adopts an interdisciplinary approach and works collaboratively with NHS services in primary, secondary and tertiary care, continuing healthcare, adult social care and with private and voluntary providers. The Hospice team acts as a resource to provide specialist advice and support to the wider primary care locality. Its aim is to= provide specialist and integrated palliatpie and end of lrfe care and support to the population of Hastings and Rother irrespective of their diagnosis provide specialist and holistic support to family members and carers of people living with an advan￿d, serious illness to enable them to remain as resilient and independent as possible ensure that patients and their families or carers receive appropriate infomation, treatment and support to help manage their illness and the effect of their illness on their wellbeing ensure that patients and their families and carers have knowledge and choice regarding how their support and care is delivered. ensure that patients. preference as to how they are cared for and die are obtained and recorded. and where possible, achieved provide specialist support to people who are bereaved. The Hospice accepts referrals from any health practitioner and also self-referrals, which are discussed with the GP. The inter-disciplinary team provKles hKJh qualty holistic palliative and end of life care, enhancing the quality of lrfe for patients nearing the end of their lives and supporting family members and ¢arers. This includes: Pay3 St Michael's Hospice Hastings and Rother Report of the Trustee5 and strategic report (contlnued) For the year ended 31 March 2023 specialist syrnptom control - to keep patients as comfortable and well as possible holistic emotional, social. spiritual and practical support - to make sense of and cope with living Wlth or supporting someone with a life limiting illness.rehabilitation to optimise patients. independence and participation in activities meaningful to them in-patient facilities 2417 telephone advice and support for patients. families and health professionals respectful and effective working with other relevant primary, secondary. tertiary and social care providers to ensure maximum continuity and seamless support for patients nearing the end of lrfe and their families supporting people to be cared for in their preferred place of care whenever possible and in line with their needs ensuring patients in receipt of care are treated with dignty and respect and that their individual needs and preferences are acknowledged support from trained volunteers expert bereavement support. Support and care is highly specialised, individualised and delivered by skilled members of an inter-disciplinary team including consultants in palliative medicine. specialist doctors, nurses. health care and wellbeing assistants, therapists. social workers. spiritual support leads and phamiacist who work in accordance with professional codes of practice {where applicable) legal and ethical principles. The Hospice provides palliattve Care training and support to health and social care professionals and nursing homes. 1.3. Main activities undertaken to further the charity's purposes for the public benefit The charity serves a population of c190k INing in Hastings and Rother. All the activities undertaken by the charity are to further its charitable purposes for the benefit of the people living within its catchment area and all servios are provKled free of charge. Much of the charity's funding comes from local individuals and organisations and most of its beneficiartes are predominantty. but not exclusively. drawn from Hastings and Rother. Services are also available for those who have not been resident locally but need support, e.g. someone who has moved into the a￿a to be ck)ser to their family. The Trustees have constdered the Chatity Commission's guidance on publTrc benefit and can confirm that the charity's activity does deliver public benefil. The main benefits that have arisen throughout the year are detailed in the following pages. 1.4.Aims, details of issues the charity seeks to tsckle. changes or differences it seeks to make Through the services it provides. the training it delivers and numerous fundraising actpiities. the Hospice aims to raise awareness of, and support the end of life and bereavement needs of those living in Ihe local a￿a. Page 4 St Mlchael's Hospice Hastings and Rother Report of the Trustees and strategic report Icontinued) For the year ended 31 March 2023 1.5. How achievement of aims will further the charity's legal purposes Providing Hospice care directly fuffils the charty's legal aim of promoting the relief of sickness by supporting the physical, psychological. social and spiritual needs of those affected by life-limiting illness. In addition, it provides holistic emotional and spiritual support to make sense of and cope with supporting someone with a life-limiting illness. Providing education and training to other health and social Ca￿ professionals is indirectly fulfilling the charity'5 aim of promoting the relief of sickness. Encouraging people to engage in fundraising activities is a way of enabling them to do something positive in someone's memory as well as raising awareness and support for the charity. This therefore indirectly fulfils the charty's aim of promoting relief of sickness. 2. STRUCTURE, GOVERNANCE AND MANAGEMENT 2.1. Governlng document st Michael's Hospi￿ 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 Trustees of the Charity (who are also Directors of the Company) are drawn from the local community. 2.2. Organisational structure During the year 2022123. the Board met formally six times. Additionally, it held three strategy days: one focused on Board development and the other two considered strategic developments. The Clinical G0Veman￿ Committee met six times and the Governan￿, Audit and Risk Committee met four times. The Finan￿ Committee. People Committee and the Fundraising Strategy Committee all met three times. The Chief Executive is appointed by the Board of Trustees to manage the day-to-day operations of the charity. The Board seeks to ensure that all the charity's activities are within its charitable objectives and its responsibilities include setting the strategic direction and approving the business plan and budgets. The Chief Executive and the Leadership Team attend and present informats'on at each fomial Board meeting to enable effeGtive decision-making 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 business. The Boards of these Companies meel four times a year to scrutinise the operation of these businesses and explore opportunits'es 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. The initial appointrnent of Tnjstees is for a period of three years followed by a second term of Ihree years. Theieafter, the position is reviewed annually up to the maximum of nine years. The Board of Trustees has delegated responsibility for succession planning. recruithient and induction of Trustees to the Goveman¢e, Audit and Risk Committee who then make recommendations to appoint to the Board. The skills of existing Board members are Pa82 S st Michael's Hospice Hastings and Rother Report of the Trustees and strategic report Ic¢yrtinued) For the year ended 31 March 2023 assessed and where a skills gap exists, advertising will take pla￿ using the most cost- effective method for the skills being sought whilst ensuring a wide, diverse audience is reached. Members of the Goveman¢e, Audit and Risk Committee will then interview candidates who meet the setection criteria. Once appointed. all new Trustees undertake an induction programme specific to their needs. The following actions were undertaken at a General Meetings on 31 January: Stephen King and Sam Carter re-appointed as Directors of the Retail and Lottery Boards Peter Dewhurst and Nigel Kirt)y-Green re-appointed as Trustees. The Trustees who served during the year are shown below and their rrEmbership of a sub- committee is indicated usin9 the following key: I Clinical Governan￿ Committee + Finan￿ Committee Q Fundraising Strategy Committee * Governance. Audit and Risk Committee 2 People Commrttee Tony Boardman n Simon Davis • n i Dr Peter Dewhurst i * Kerry Gentlemen x J Ntgel Kirby-Green 4 Geoff Longmire • Q lan Menzies • * Susan Munroe J Linda Stevens 4 • 1 James Thomas • 2.4. Remuneration for key management personnel The Trustees consider that the Trustees and the Leadership Team comprise the key management individuals of the charty responsible for directing. controlling and operating Ihe charity on a day to day basis. All Trustees give their time freely and received no remuneration within the year. The Hospice directly employs medical consultants. doctors. nurses and other allied healthcare professionals, who are paid at a rate aligned with the relevant national scale. The Leadership Team remuneration is reviewed annually by the People Committee as part of the annual budget cycle where inflation, other hospices and NHS increases are taken into consideration. The H05pice also takes part in salary surveys and benchmarks against a range of peers. Page 6 St Michael's Hospice Hastings and Rother Report of the Trustees and strateg1¢ report (continuedl For the year ended 31 March 2023 3. STRATEGIC REPORT Introduction from the Chief Executive Officer l am delighted to present the 2022123 Annual Report. It has been another complex and challenging year and l am consistently grateful to our employees. volunteers and supporters for enabling us to Continue to provmje high quality palliative and end of life care and bereavement support for the people of Hastings and Rother. 2022123 was the first year of our new strategy based upon the principles of a public health palliative care approach. This model recognises that dying. death and loss are social phenomenon and that communities play an integral role in developing social networks of care to support people experiencing dying, death and loss. The Hospice strategy strives to create a partnership between the clinical services il provides and the communities it serves by sharing its skills and knowledge rather than them only being accessed by those with a clinical need. A cornerstone of this strategy is building networks of support for carers to enable and sustain them in their caring roles. Our in-patient unit remains a key part of our service offer and bed number5 are gradually tuming to pre-pandemic levels with 188 admissions in the year. During the winter, we supported the local NHS Trust by offering additional in-patEnt beds to help reduce pressure in the Conquest Hospital. In response to changing preferences about where and how patients want to access support and due to nats'onal healthcare workforce shortages. we have changed how we provide community support. The Hospice Outreach team offers initial assessments and reviews, at home and in outpatient clinics. and is supported by the Telephone Support Line which is available 24 hours a day, seven days a week. Our focus on quality improvements is a theme that runs through all our work as we strive to provide personalised. holistic, high-quality care and support to patients and families in an enabling environment that respects their wishes. We also want to share our experiences with others and to this end were invited to give two oral presentations at the Hospice UK Conference in 2022.. one about our work in relation to equality. diversty and inclusion and the other about how we are integrating our retail business with our compassionate communities strategy. We also presented three posters focusing on a pan Sussex 24[7 hospice line. health care and wellbeing assistants. development, medicines management. We have worked hard to be a supportive partner to our NHS and social care colleagues despite an ongoing difficu￿ financial landscape. We will continue to focus on financial sustainability whilst increasing our capacity. where possible as we move forward into the next year. We have much to be proud of as I hope you will app￿late when reading this report. Dr Karen Clarke Chief Executive Page 7 St Mlchael's Hospice Hastings and Rother Report of the Trustees and strategic report (continued) For the year ended 31 March 2023 3.1.Achievements in the year 202W23 In 2022123 the Hospice reviewed and refreshed its visior). mission and values and launched new strategy: Our vision A kind, resilient and empowered community that is ready, willing, Gapable and confKlent to support people living with dying, death and loss. Our mission To support and enable the community of Hastings and Rother to live well with dying, death and loss. Our values OUR VALUES Respectful Innovative Wè oc1￿￿4&g￿1fy{ryl Intqgrlty W• lead the way Kind Inclusive We show kindness We (re stronger togethér Our strat We have an ambitious strategy. to become a centre of exCel￿n￿ for palliative care provision. education and research and to create a compassionate community which supports each other in dying. death and loss. We believe that our community is rich in assets and that with engagement, education and support from the Hospice these Can be harnessed to impact better end of life care for all. Alongside being a provider of specialist palliative care, we will adopt and embed a public health approach to palliative care as an equally important aspect of our core business. This is an innovattve approach. founded on the principles of partnership and collaboration wrth the people we serve and those closest to them, our generalist palliative ¢are partners, with neighbourhoods, community organisations and with civic institutions. To achieve our vision we will.. a) Provide high quality specialist pallialtve and end of life care.. b) Understand, educate and collaborate wrth health and social care partners: Pay8 St Mlchael's Hospice Hasllngs and Rother Report of the Trustees and strateglc report {¢ontinued) For the year ended 31 March 2023 c) Listen to, enable, energise and empower ¢ommunih"es; d) Influence, support and advise civic institutions, su¢h as schools, WQTkplaces, local councils and cultural or faith organisations. We see St Michael's Hospi￿ as an InflUen￿r and that through investment in community developmentwe have a unique Vehic￿ to shape both the dialogue and experience ofdying, death and loss in our communities. The ethos of one united team extends to all a￿a5 of the Hospi￿ and is key to our strategy,. working together as one team to achieve our vision and mission. As we develop and support our compassionate community, our Hospi shops will have an integral role to play in being the va￿. of the Hospice in local neighbourhoods and providing facilities to enable people to receive our services closer to where they live. Our Lottery Collectors are already playing a significant role in connecting people with the Hospice and reducing social isolation across our catchment areas. The following section highlights some of the key achievements in 2022123. 3.2. Increase clinical reach In 2022123 more patients were supported than in the previous year. The total number of people supported in the graph below represents each indivKlual counted On￿ and excludes support to family members and carers and those supported by Community Volunteers. More people receiving support Admissions to IPU 188 180 CC￿mUn￿ Team SUPF¢Jt 18bo 170QI 202212023 Bereavement support 520 •202112022 Hospice supwrted 1725 Hastings has one of the h￿hest rales of deprrvation in England and a higher prevalence of heart and respiratory diseases. Steady progress continues to be made. by the Hospi￿, in supporting those with a non-cancer diagnosts and this increased from 480A to 50% in the year. This remains a key priority. Pa8e 9 St Michael's Hosplce Ha$tlngs and Rother Report of the Trustees and strategic report (continued For the yearended 31 March 2023 In addition to in-patient services. the Hospice Outreach team, consisting of Clinical Nurse Specialists and doctors, see patients at home. and in outpatient clinics. for inttial assessments and reviews. The rehabilitat￿n. social work, spiritual support and wellbeing teams also visit people at home and in outpatient clinics. This is a post-pandemic service development. The Hospice's Telephone Support Line. supported by nurses, paramedics and healthcare assistants is available 24 hours a day. 7 days a week. There is also aC￿sS to an on-call dodor rf required. The Community team. including Wellbeing, supported over 1,800 patients, made over 1,600 home visits and over 25,000 telephone calls to patients and their carers in this period. Hospice Consultants continue to in-reach into the East Sussex Healthcare NHS Trust (ESHTI through the Conquest Hospitsl. Wellbeing and Bereavement seNices continue to be provided from the Hub on Rye Hill lo enable patients in the east of the Hospice's catchment area to a¢¢ess support closer to home. The demand for bereavement support conts.nues to grow and Ihis year we introduced new groups to support people who felt they did not belong to the regular groups the Hospice offered. In response to this and the findings from the Hospice's Equality. Diversity and Inclusion Audit in February 2021, the Bereavement Team established a Queer Grief Group as part of its RISE {Resilienrk with Inspirational Support & Empathy) service. It aimed to offer a safe space for queer people to process their grief and therefore provide greater access to bereavement support for those who may feel disenfranchised. In January 2023, the Board approved the Compassionate Communities strategy which aims to listen to, enable, energise and empower Communit￿S. For people who are living with advanced illness, those who are caring for them and those who are bereaved, loneliness and isolation is a tangible Prob￿rn. As lack of mobilty. the burden of care and associated poor mental health increases. connection to established ne￿orkS decreases. Dying. death and loss are themselves marginalising eXperIen￿S and so the Compassionate Communities strategy strives to include the 'strangers at the edge, of the community. Through its delivery, the Hospice aims to include people notjust marginalised by their health condition, Caring responsibilities andlor grief but also where this intersects with race, sex, gender, class, sexuality. age. dtsability. religion or belief and civil partnership or marital ststus. The compassionate communty strategy has three interconnected workstreams: cSinical services that support a compassionate Community agenda Hospi¢e-led initiattves that aUgn￿nt or pump prime compassion within a community working with the communty using an asset-based communty development (ABCO) approach. In 2022123, over a six-month period. an average of 64 people, per month. were supported by a Community Volunteer and 83 peop￿ were supported by a Telephone Volunteer Befriender. The Saturday Socials. occurring on the last Saturday of the month. were set up to tackle loneliness and isolation and each month an average of 43 people attend. 17 of those have reported feeling less socially isolated after attending. Page 10 Sl Mlchael's Hosplce Hastings and Rother Report of the Trustees and strategic report Icontinued) For the year ended 31 March 2023 3.3. Improve and demonstrate our effectiveness Five Trustee visit5 took pla￿ in 2022123 with a ￿ViSed format where all ath'vities were undertaken jointly rather than each Trustee having a different agenda for the day. The fonnat is based on the Care Qualty Commission {CQC) Key Lines of Enquiry and topics to explore to illustrate this are suggested. Feedback is given within two weeks of the visit, so anything highlighted can be considered in a timety way. The positive feedback re￿iVed was eVIden￿d in a Trustee survey, in January 2023 which demonstrated the value Trustees obtain from the visits including meeting team members, seeing the teams at work and also in relalion to providing context and information. The visits remain an important part of governance assurance. The CQC is undergoing a period of transition and restructure as it moves towards a new model of inspection based on a Single Assessment Framewotk. A Direct Monitoring call was held with CQC on 1s1 March 2023 with the Clinical Services DirectorlRegistered Manager and the Associate Director- Quality. Key Lines of Enquiry were discussed, and the outcome was that there was no indication an inspection was required. Regrettably, there are tirnes when the Hospi￿.$ services do not meet the expectations of its service users and in 2022123 there were ten complaints. A thorough investigation is undertaken into all Complaints and a written response provided to the complainant within 20 days. Lessons learntand recommendations from the investigations inform the Hospice's education, audit and qualty improvement priorities. Feedback is shared with team members to increase understanding of the impact of a poor experience on patients and families and leaming is shared more widely across relevant teams. In the past year teams have worked to.. enhance the focus on providing person centred-care make sure carer experience is heard and valued improve infomation and communication about Se￿iceS so patients and families know what is available provide clarity on who is providing Ireatment and interventions where care is shared across different organisations. DKJital transformation remains a key priority to enable the Hospice to provide better care and to empower patients. families and carers by increasing access to services, opening new channels of communication and providing people with more ways to aC￿sS the care and infomation they need. Phase one of the implementation of a new electronic patient record system (EPRS) Systmone. a joint initiative with St Witfrid's Hospice (Eastboume) was successfulty implemented in September 2022. A joint Clinical Lead post was introdU￿d and continued until the end of June 2023 to support phase two of the project. Data sharing with ESHT has been enabled and work is ongoing regarding the best way to roll this out to GPS. A new Hospi￿ website went live in February 2022 and provides a better user joumey, with engaging articles as well as an easy access fomiat that leads users to the infomation they need about Hospice seN1￿$ and how they can support the organisation. Work to improve effectiveness and to support and develop the workforce has continued through the collaboration that exists across the seven adult Sussex hospices. Following PaKe 11 St Michael's Hospice Hastings and Rother Report of the Trustees and strategi¢ report Icontinued) For the year ended 31 March 2023 the withdrawal of the current learning management system (LMS), Relias, from the UK market. a new LMS needed to be procured. A project team. across five hospices, worked at pace to have this system successfully go live at the beginning of 2023124. The collaborative's leadership and management development programme "THRIVE. has re￿iVed very positive feedback from the th￿ cohorts of managers (49 in total) who completed the programme in 2022123. Two further cohorts will be delivered in 2023124. 3.4. Develop and value our people There has been significant change to the structure of the Extended Leadership Team {ELT), with two Directors (Medical Director and Finance and IT Director} working jointly with St Wilfrid's Hospi￿ (Eastbournel and plans to share the Clinical Services Director role from October 2023. In addition to this. three Associate Directors have been introduced to cover clinical services. quality, dats. education and research. A Head of Business Support was recrurted to improve systems and processes and organisational effectiveness. The first Hospice Annual Celebrats'on event was held in Summer 2022, where employees and volunteers were able to spend some social time together over some food whilst being entertained with live music. Long service and Team awards were presented by the Trustees and Leadership Team. The feedback from this evenl was overwhelmingly positive and so it will become an annual event. Year of the Organisational Development Strategy has delivered some key areas of further improvement some of which are highlighted below. The Hospice continues to be committed to offering career development opportunities and was de1￿hted when a Trainee Nurse Associate transferred from elsewhere in her second year of training following an enjoyable placement with the Hospice. A Health Care Assistant will Commence their Nurse Associate training in September 2023. Despite national nursing shortages, newly qualified nurses and those from other specialities have been successfully recruited and supported through their induction peiiod. and beyond via a preceptorship programme. In response to a lack of specialist nurses in the locality. the Hospice created a new Associate Clinical Nurse Specialist (CNS) role to grow and develop skills in this area. Two Associate CNS are completing their development programmes and will become CNS in 2023124. Following the successful implementation of the Nursing Competency Framework in 2021122, a competency framework for Wellbeing Assistants has been launched and level three of the Registered Nurse skills framework will be launched in 2023124. In line wilh the Service Level Agreement with ESHT, all H05pice doctors underwent a formal appraisal. No doctors were due for revalidation and no complaints or ¢oncems relating to doctors were raised. To support and develop all areas of equalty. diversity and inclusion (EDI) a new equality, diversity and inclusion statement has been approved along with a prO￿sS to evaluate the impact any policy, service development orchange will have on EDI across the or9ani5ation. The EDI strategy has made progress in raising awareness across a range of topics through Conscious Inclusion workshops and embarking on the Hospi￿ UK'S Compassionate Page 12 St Michael's Hospl¢e Hastings and Rother Report of the Trustees and strategic report {continued> For the year ended 31 March 2023 Employers programme where the Hospice achieved the Silver award in November 2022. The aim is to achieve Gold by October 2023. The volunteer workforce dirninished somewhat duTing Covid and the Hospice has been working on ways to grow this part of the workforce again. There has been a significant increase in the number of Bereavement volunleers recruited this year and a new role of Community Volunteer to support the Compassionate Communities strategy has also proved popular. Volunteer training is being developed as part of the Sussex Hospices Learning Hub collaboration to ensure the right balance of training and skills relevant to the role is available and applied consistentty. 3.5. Ensure our long4erm sustainability Expenditure was closely monitored and was wDthin tolerance levels throughout the year. However, the pandemic and the cost of INing crisis continued to have a significant impact on the Hospice's ability to raise funds. The Hospice appointed a joint Finance and IT Director with St Wilfrid's Hospice (Eastboume) to enable sharing of skills, knowledge and good practi￿, build relationships with the commissioners and explore fvrther opportunities to share resources and systems. In 2022123, this has facilitated a joint approach to the implementation of a new EPRS see section 3.3 and in 2023124 there will be shared finance system. a) Lottery The Lottery continues to grow, recouping the losses experienced during 2021122. The canvassers and ¢olle¢tors were fully back at work. supported by promotion at events and utilising the new microstte. The Lottery generated £888k which resulted in a covenant of £518k to the Hospice. For every £1 played in the lottery. 59p goes to the Hospi￿ (the legal requirement is to pay at least 20p), 17p goes into the prize fund and 17p covers the adminislration, promotion, and legal regulation expenditure. b) Retail and E-commerce All seven shops were trading throughout the year and the recruitment of a Relief Shop Manager has supported shops to open on a consistent basis. Across the company there is a need for greater number of volunteers to improve both high street and e- commerce sales. The Retail Company generated £648k in income. over £100k in excess of the previous year. Additional costs in the year meantthat a covenantwas not payable to the Hospice but Performan￿ for the first quarter 2023124 has exceeded expectations. c) Sussex Hospices Collaboration St Michael's Hospice is a member of Hospi￿ UK (HUK). the national charty which exists to support and provide a campaigning voice to hoSpi￿S across the United Kingdom. This has helped to raise the profile of hoSpi￿S across government departments and generated some posib've results. particularly in relation to raising awareness of the impact of a rise in energy costs on hospi￿$. Pay 13 St Michael's Hospice Hastings and Rother Report of the Trustees and strategic report Icontlnued) For the year ended 31 March 2023 The seven adult Sussex Hospices Continue to pursue opportunities for collaboration since starting in 2018. Some prcgramrnes that are part of the collaboration are referen￿d in other parts of this report and in October 2022, fple new workstreams were agreed.. education. research. data. workforce and NHS engagement. Work will continue to progress these initiatives and more opportuntties will be developed in the year ahead. While each hospice holds fast to its local autonomy and identty. they recognise the benefit of working together to make the most of their knowledge and resources in benefitting patients and farnilies and enhancing our sustainability. d) "Follow that DuGk°_ Art trail Follow that Duck was an ambitious sculpture trail from Hastings to Bexhill. involving many local businesses. schools and the wider ¢ommunty. The trail was very well re￿ived. offering a much-needed opportunty to reengage with a mass participation event following Covid. Over £200.000 was secured in sponsorship with an overall. post trail profit of £75k. However, the rnost positive outcomes were the ability lo reach new audiences. increased awareness ofthe Hospice and how it supports patients at the end of life and their families and developing new relationships with local organisations and businesses. FINANCIAL REVIEW The results for the year are shown in the Statemenl of Financial Activities. Income totalled £7.54 million (2022 - £6.84 million). The charity received a grant from Hastings and Rother Clinical Commissioning Group of £2.35 million (2022 £2.36 million). Total expenditure was £7.49 million (2022 - £6.95 million) an increase of 7.8%. The year ended with a surplus before investment movements of £50k (2022 - deficit of £117k). 4.1. Reserves Policy One ofthe key risks that the charity faces is a fall in its income because of a drop in donated funds. To sustain the organisation's ability to deliver the serVi￿S it is committed to the Trustees have agreed to maintain financial reserves as they deem necessary to ensure there can be continuity. The short-term reserves include a working capital and contingency reserve as well as some designated reseNes for essential capitavmaintenance works. The contingency funds are set at £3.4 million which amounts to 12 months, expenditure after allowing for an amount of income that can reasonabty be ￿lled upon. There is a fimi commitment to improve the physical environment for patients, families, visitors, employees and volunteers. The Trustees have designated a Strategic Development Fund of £2 million to develop facilities on the Hospi￿ site. Site options are currently being considered by an extemal consultant. P4e 14 Sl Michael's Hospice Hastings and Rother Report of the Trustees and stralegi¢ report Icontinued) For the year ended 31 March 2023 The fixed asset resep4e represents the amounl of the total reserves that are tied up in tangible fixed assets, mainly freehold property includin9 the Hospice building. As at 31 March 2023. the Consolidaled Balance Sheet total was £15.64 million (2022 - £15.83 million). 4.2. Investment Policy and objectives The charity's investment objective for short-term reserves is to preserve the capital value with a minimum level of risk ensuring that the Hospice is able to meet unanticipated cash flow requirements. Funds treated as short-term would usualty be invested only in a mix of short and medium-term deposits. The investment objective for long-temi reser4es ts to secure a retum in excess of infflation, generating an income to support the Hospice's on-going activities. The Hospice has adopted an ethical investment policy to ensure that its investments do not conflict wrth its aims, and therefore precludes direct or indirect investments in companEs that generate revenue from tobacco or arms and those companies whose principal activity is either gambling or pornography. 4.3. Investment perfomiance At 31 March 2023. Ihe market value of the portfolio was £5.9 million. with an estimated yield of 20kn. Members of the Finance Committee review the brief given to the investment managers on an annual basi5 Wlth ￿gard to the proportion of investments to be held in each asset category, the level of risk which is a¢¢eptable and the level of in¢onE required. 4.4. Rlsk management Risk registers are reviewed by the Leadership Team on a monthly basis and by the Governance. Audit and Risk, People and Clinical Governance Committees, on a bi-monthly or quarterly basis. identifying potentialty s￿nIficant risks. assessing their likelihood and impact and agreeing mitigating action. Corporate risks are subsequently reported to the Board at each meeting. The key risks faced by the charity in 2022123 as Klentified in risk registers were: Nursing workforce shortages: the national shortage of specialist palliative care nurses Combined with Brexit and the impact of the pandemic on healthcare workers continued to adversety affect the Hospi￿. and in particular Ihe community nursing service. Pay for all linical employees is reviewed annually and benchmarked against equivalent roles in the NHS. The employee assistance programme supports peop￿ to get more timely clinical interventions and expediting their retum to work. Career development pathways continue to be considered and created so that the Hospice is able to develop its own nurses for the future. The Hospice continues to work closely with NHS co51eagues lo tackle nurse recruitment at system level. Reputation damage.. The Hospice is known as a quality health care provider and its reputation is of vital importance. Change5 to Servi￿ delivery, as a result of workforce shortages, and a reliance on health and social care partners to work collat)oratively to P4e 15 St Michael's Hospice Hastings and Rother Report of the Trustees and strategic report (continued) For the year ended 31 Mar¢h 2023 provide a seamless. and not duplicated service means there is an increased risk of complaints and reputational damage. Some rebranding of services has taken place to ensure that the public are clear about the Hospice offer and comments and complaints are promptly responded to and investigated to ensure lessons learned are used to improve practice. Funding: There is a risk that due to the rising cost of INing which impacts the Hospice's expenditure and its supporters. abilty to donate, the Hospice may be unable to generate sufficient income to ensure the Hospice and subsidiary companies can operate effectively. A prudent budget has been set for 2023r24, opportunities to Collaborate and share costs are being explored, and new donor stewardship programmes are being implemented. Risks associated with business continuty, e.g. a major incident, a serious failu￿ in utilities and IT failure due to cyber-attack. virus. breakdown or hacking.. Policies and prO￿dureS are subject to ongoing review and updating to ensure cornplian￿ with best practi￿ and legislation. Vantsge-sentinel Continues to provide ovetsight of the potential risks the ¢harity fa￿$ enabling proacts've steps to be taken to mitigate these. The new IT managed services provider provides monitoring and recommends updates of the IT infrastructure and regular reminders are sent about the potential for phishing and scams. 4.5. Fundraising The Trustees take their responsibilities under the Charities (Protection and Social Investment) Act 2016 seriously and have considered the implications on their fundraising activities. The Hospice is commrtted to its donors and remains dedicated to treating all donors and supporters with the h￿hest level of Care, consideration and respect. The Hospice undertakes fundraising activty via support from volunteer fundraising in the community, applying to and partnering with companies and grant-giving trusts. direct mailings and appeals and the organising of events. Following the pandemic, when many of these activities were severely restricted, the impact of the cost of living crisi5 is now being felt. St Michael's Hospice Lottery Limited also mns a weekly lottery with the profits of the company being gift aided to the charity. The work of the Lottery Team is regulated by the Gambling Commission. St Michael's Hospice Hastings and Rother is registered with the Fundraising Regulator and abides by the Regulator's Code of Fundraising Practice and the Fundraising Promise. The Hospice is careful to ensure that it takes all reasonable steps to treat a donor fairly, enabling donors to make an informed decision about any potential donation. The Hospi￿ adopts guidance on best fundraising practice provided by regulatory bodies and will continue to do so as these are updated. During the year to 31 March 2023, there were no complaints in relation to fundraising. PLANS FOR THE FUTURE 2023124 will be the second year of the current Hospice strategy. In this year the Hospice plans to do the following.. Page 16 St Michael's Hospice Hastlngs and Rother Report of the Trustees and strategic report (continued) For the year ended 31 March 2023 Provide high quality specialist palliative and end of life care by: developing a new ¢lini¢al strategy for implementation in 2024125 maximising available bed capacity through an enhanced workforce and management of building issues more effectively gathering service user feedback to inform quality improvements transitioning to a CQC Single Assessment Framework model through reviewing governance structures, action logs. policies and processes. b. Collaborate with health and social care partners by: supporting learning for generalist palliative care colleagues including those in care homes developing and implementing a stakeholderengagement strategy progressing East Sussex based initiatives with the Integrated Care System {ICS), Sussex Hospices Collaborative {SHC) and St Wilfrid's Hospi￿. Eastbourne. c. Support compassionate communities by: implementing the compassionate communities strategy designing and implementing an up to date carers strategy to support carers of patients in any setting delivering the Retail Strategy to ensure the shops are thriving and sustainable businesses that support local communities and signpost to the Hospice implementing the Fundraising strategy and Lottery business plan to generale new income. optimise existing income streams and ensure careful stewardship of supporters to enable more people to be supported d. Influence civic institutions by: improving support and Workpla￿ provisions for employees who are carers, to achieve Gold Award accreditation as a HUK Compassionate Employers sharing the knowledge gained from this to support other organisations to become Compassionale Employers discovering all the assets that exist within the Hospices catchment area and exploring opportunities to work together to support peop￿ living with dying, death and loss In addition to these strategic priorities the Hospice will continue its EDI work with a focus on ensuring its clinical services are ac￿Ssible to all i￿espective of ethnicity, religion, sexual orientation. care setting etc. The Board and Leadership Team also acknowledge that the Hospi￿ building is beautiful but ageing and so will continue to invest time and reSoUr￿S in considering how further changes can be made to ensure that our facilities for patients, families. employees, volunteeTs and visitors are as welcoming, accessible, effective and enjoyable as possible. Page 17 St Michael's Hospice Hastings and Rother Report of the Trustees and strateglc report (continued) For the year ended 31 March 2023 Statement of Trustees. responsibilities The Trustees (who are also Directors of the charity for the purposes of company law) are responsible for preparing the Trustees. Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Pra¢ti¢e). 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 charitable company and the group and of the incoming resources and application of resources, including the income and expenditure. of the charitable group for that period. In preparing these financial statements, the Trustees are required to.. select suttable accounting policies and then apply them consistently- observe the methods and prin¢ipks in the Charities SORP {FRS 102): make judgements and estimates that are reasonab￿ and prudent., state whether applicab￿ accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements,. and prepare the financial statements on the going con￿rn basis unless 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 with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. In so far as the Trustees are awa￿. there is no relevant audit information of which the charitable company's auditor is unaware; and the Trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit infomiation and to establish Ihat the auditor is aware of that information. The Trustees are responsible for the mainlenance and integnty of the charity and the financial information included on the charity's website. Legislation in the United Kingdom goveming the preparation and disseminalion of financial statements may drffer from legislation in other jurisdictions. Auditors Saffery Champness were auditors during the period and their reappointment will be considered at the annual general meeting. The TTUStees have taken advantage of the small Companies. regime in p￿parIng the Trustees. Annual Report. 18 Sl Mlcha•l'8 Hospiee Hutings and R¢ther Report of th Tn￿to•s and Strategic rewt (contiThMd> For the year ended 31 March 2023 On behalf of the Board Mrs S C Munroe Trustee Px•* Iq st Mi¢hael's Hospice Hastings and Rother Independent auditors, report to the members For the year ended 31 March 2023 Oplnlon We have audrted the financial statements of St Michael's Hospice Hastings and Rother (the 'parent charitable company,) and its subsidiaries (the 'group') for the year ended 31 March 2023 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 significant accounting policEs. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdorn Accounting Standards. including Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally A￿pIed Accounting Practice). In our opinion the financial statements- give a true and fair view of the state of the affairs of the group and the parent charitable company as at 31 March 2023 and of the group's incoming resources and applicats'on of resources. including its income and expenditure. for the year then ended., have been property prepared in accordance with United Kingdom Generally A¢￿pted Accounting Practice. and have been prepared in accordance wtih the requirements of the Companies Ad 2006. Basis for opinion We conducted our audit in accordance with Intemational Standards on Auditing (UK) (ISAS (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK. induding the FRC'S Ethical Standard, and we have fijlfilled 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 audiling the financial statements, we have concluded that the trustees. use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed. we have not identified any material uncertainties relating to events or conditions that, individually or collectively. may cast significant doubt on the group or the parent charitable company's ability to continue as a going concern for a period of at least fvlelve months from when the financial statements are authorised for issue. Our responsibilitEs and the responsibilities of the trustees wtth respect to going concem are described in the relevant sections of this report. Pa8e 20 st Mlchael's Hosplce Hastlngs and Rother Independent auditors. report to the members (continued) For the year ended 31 March 2023 Other inforniation The trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the financial ststements and our audilor's report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report. we do not express any fom of assurance conclusion thereon. Our responsibility is to read the other infomiation and. in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misststed. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gNes rise to a material misstatement in the financial statements themselves. 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. Other matters prescribed by the Companies Act 21)06 In our opinion, based on the work undertaken in the course of the audit.. the information given in the Trustees. Report which includes the Directors, Report and the Strategic Report for the financial yearforwhich the financial statements are prepared is consistent with the financial stalements,. and the Trustees, Report which includes the Directors. Report and the Strategic Report has been p￿pared in accordance with applicable legal requirements. Matters on which we are required to report by exception In the light of the knowledge and understanding of the group and the parent charitable company and their environment obtained in the course of the audit, we have not identified material misststements in the Trustees. Report and Strategic Report. We have nothing to report in respect of the following rnatters where the Companies Acl 2006 require us to report to you if. in our opinion-. adequate accounting records have not been kept by the parent charitable company, or retums adequate for our audit have not been received from branches not visited by us: or the parent charitable company financial statements are not in agreement with the accounts.ng records and returns.. or certain disclosures of trustees, remuneration specified by law are not made.. or we have not received all the infomiation and explanations we require for our audit. Pa8e 21 St Mi¢hael's Hospi¢e Hastings and Rother Independent auditors, report to the members (¢ontinued) For the year ended 31 March 2023 Responsibilities of truslees As explained more fully in the Statement of Trustees. Responsibilities on page 15, the trustees (who are also the d1￿ctOrS of the parent charttable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. and for such inlemal control as the trustees detemiine is necessary to enable the preparation of the financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial ststements, the trustees are responsible for assessing the group and the parent charrtable company's abilrty to continue as a going concern, disclosing, as applicable. matters related to going cOn￿M and using the going concern basis of accounting unless the trustees either intend to liquidate the group or the parent charitable company or to cease operations. or have no realistic allemative but to do so. Auditor's responsibilities for the audit of the financial statements We have been appointed as auditors under the Companies Act 2006 and report in accordance with regulations made under that Act. Our objectives are to obtain reasonable assurance about whether the group and parent financial stalements 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 orerror 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 wrth our responsibilities, outlined above, to detect material misstatements in respect of irregulartlies, including fraud The specific procedures for this engagement and the extent to which these are capable of detectsng irregularities, including fraud are detailed below. Identifying arKI assessing nsks related to irregularities.. We assessed the susceptibilty of the group and parent charitable company's financial slatements to material misstaternent and how fraud might occur, including through discussionswith the trustees, discussions within ouraudit team planning meeting, updating our record of internal ￿ntrOl$ and ensuring these controls operated as intended. We evaluated possible incentives and opportunrties for fraUdu￿nt manipulation ofthe financial statements. We identifEd laws and regulations that are of SUnifican￿ in the context of the group and parent charitable company by discussions with trustees and updating our understanding of the sector in which the group and parent charitable company operate. Laws and regulations of direct signific2nce in the context of the group and parent charttable company include The Companies Act 2006 and guidan￿ issued by the Charity Commission for England and Wales. Pa8e 22 St Michael's Hospice Hastings and Rother Independent auditors. report to the members {Gontinued) For the year ended 31 March 2023 Further the group is subject to other laws and regulations where the consequen￿$ of non- compliance could have a material effect on amounts or disclosures in the financial statements, through 5ignifi¢ant fine, litigation or restrictions on the group's operations. We identified the most significant laws and regulations to be those issued by the Care Quality Commission covering health care services and those issued by the Gambling Commission covering the requirements for running a lottery. Audit response to risks identified". We considered the extent of compliance with these laws and regulations as part of our audit prO￿dureS on the related financial statement item5 including a review of financial statement disclosures. We reviewed the parent charitable company'5 records of breaches of laws and regulations, minutes of meetings and correspondence with relevant authorities to identify potential material misstatements arising. We discussed the parent charitable company's policies and Pro￿dureS for Compliance with laws and regulalions with members of management responsible for compliance. During the planning meeting with the audit team, the engagement partner drew attention to the key areas which might involve non-complian￿ with laws and regulations or fraud. We enquired ofmanagernentwhethertheywere aware ofany 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 controls by testing the appropriateness of journal entries and identifying any significant transacts'ons that were unusual or outside the normal course of business. We assessed whetherjudgements made in making accounting estimates gave rise to a possible indication of management bias. At the completion stage of the audrt. the engagement partner's review included ensuring that the team had approached theirwork with appropriate professional s¢epticism and thus the capacty to identify non-complian￿ with laws and regulations and fraud. There are inherent limitations in the audit procedures described above and the ftjrther removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is hKJher than the risk of not detecting one resulting from error. as fraud may invofve deliberate concealment by. for example. forgery or intentional misrepresentations, or through collusion. A further description of our ￿SpOnSIbl1111eS is available on the Financial Reporting Council's website at: www.frc.or .uklauditorsres onsibilities. This description foms part of our auditofs report. Use of our report This report is made solely to the parent charitable company's members, as a body. in accordan￿ with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we M￿ht state to the parent chariiable company's members those matters we are required to state to them in an auditorfs 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 parent charitable company and the parent charitable company's members as a body, for our audit work. for this report, or frir the opinions we have formed. Pa8e 23 St Michael'$ Hospice Hastings and Rother Independent auditors. report to the members (continued) For the year ended 31 March 2023 Cara Turtington (Senior Statutory Auditor) for and on behalf of Saffery Champness Saffery Champness Chartered Accountants Statutory Auditors 71 Queen Victoria Street London EC4V 4BE 30 October 2023 Saffery Champness is eligible to act as an auditor in temis of section 1212 of the Companies Act 2006 Page 24 St Michael's Hospice Hastings and Rother Consolidated statefflent of financial activities (incorporaling an income and expenditure account) For the year ended 31 March 2023 2023 Total funds 2022 Total funds Unrvstrided funds Restricted fvnds Income and endoYfflRnts from Donations and legacie5 2.K28.404 175.595 3.CK13.999 2.614,475 Charitable xtivities Hospice servi 2.356,176 2.356.176 2.363,692 Subsidiaries, trajing actmties Other trading adivilies Investment incc4ne 1,538.914 503.736 141.316 1.S38,914 503,736 141 316 1,453,651 293,690 111,218 Total 7.368.546 175.595 7.544.141 6,836,726 Expenditure on Raising donations Trading companies, costs 623,943 *7,089 623.943 7.089 514,385 884,221 Charitable activities Hospice serv￿eS 5,665.8 237.269 s.￿)3.165 5,555.094 Totsl 7.256.928 237,269 7.494,197 6,953,700 Net losses on investments 14 (335.550) 1335.5501 {9.6171 Net expendSture (223.932) {61.674) 1285,6061 (126.5911 Transfers between funds 23 Net movement In funds {223.932) 161.674) (285.6061 (126,5911 Reconciliation of funds Total funds brought forwa 15,437.046 21x1,028 15.637,074 15,763,665 Total funds carried forward 24 15,213,114 138,354 15.351.468 15,637,074 Contlnulng operations All incoming resourees and res(XJfces expended arise from continuing actmties. The notes on pages 29 to 51 fomi part of these financi* slate￿nts. Page 25 St Mi¢hao1's Hospice Hastings and Rother Consolidated and charity balance sh••ts As at 31 March 2023 Group Charmy Group 2022 Charity 2022 Fix•d ass•ts TarKJible assets Inveslmenls 16 17 4.611.320 5.874,291 3.890.691 5.874.392 4.710.576 6.111.804 3.969.397 a.111.￿5 10.48S.611 9.765.083 10.822.380 10,081.302 Curronl as$8ts Stocks Debtors Cash at bank and in han 25.140 5&8,142 4.572,167 24,163 1,581,540 4,398.311 17.226 15,643 1,599,e65 4,457.154 19 4.632.795 5.185.449 6.¢J)4.014 S,UJ.521 6.072.462 Cr•dilorn: amounts falling duo within one year 1319.5921 (193.761) (475.8271 (326,6231 4.86S,857 5,810.253 4.814.694 5.745,839 Total 0$8ots 1•18 current Llabllllle$ 15,351.468 15.575.336 15.637.074 15.827.141 N•t ass•ts 15.351.468 15.575.336 15,637.074 15.827.141 Funds Unre5tricled funds Restricted funds 23 15.213.114 138.354 15.436.982 138,354 15,437.046 2rKI.028 15.627.113 2¢XI,028 Total funds 15.351,468 15.575,336 15.637,074 15,82T.141 The total income of the Hos&xce as an indNidual entty fty ￿ year was £7.058,65012022 - £6.452.989} and its net deficit was £241.882 {2022- deficil of £10.9091. A Statement of Financial Act￿rt￿5 for the HOSP￿ as an ind￿￿￿u81 entity is not inclLM1ed usiry exemption in 5e¢knon 408 of the Companies Act 2Crf)6. The financial slatemenls N¥grg apwoved by the Board rfTrusle8s 4*..2023 and were stgned on its behalf by Mrs S C Munroe TNstee The notes on pages 29 10 51 fomi part of Ihese financia statements. Company number 01776496 Pa8e 26 st Mlchael's Hosplce Hastings and Rother Consolidated cash flow statement For the year ended 31 March 2023 2023 2022 Cash flows from op•rating xtivities Cash used in operations {126.5831 1192,4101 Net cash used in opernting activitios (126.583) {192,4101 Cash fl¢)Y4s frnrn invesling activities PLbrchase of tangible fixed assets Purchase of fixed asset investments Proceeds Irom Sa￿ of fixed assets Proceeds from sale of inveslmenls Investment income (184.387) {1.879,7081 207.C63 1.324.053 141.316 127,9531 {1.881.2831 208 366,926 111,218 Net cash used tn investing activities 1391,663) 11.430.884) Change in cash and cash wuivalents in the reporting period 1518.2461 11,623,294 Cash and cash equivalents atthe beginning of the reporting period 5.232,550 6.855,844 Cash and cash equivalents at the end ol the reporting period 4.714,304 5,232,550 The notes ￿ pages 29 to 51 fomi part of these finanaal statenpnts. Pay 27 St Michael's Hospice Hastings and Rother Notes to the cash flow statement For the year ended 31 March 2023 Reconciliation of nel in¢orne to net cash flow 2023 2022 Net expenditure for the reporting period las per the statement of financial activitie5) Adjustments for- Depreciation charge5 Losses on investments IProfft} Iloss on disposal of fixed assets Inveslmenl income {Increaselldecrease n stocks Oecfease l(increasel in debtors (Decreasellincrease in credrtors {285,6C6) 1126.591 229,653 335.550 (153,0731 1141,316) {7.914) 52.358 {156.235) 237,808 9,617 (111,2181 38.103 1320,9051 80,712 Net cash outllow from operating actlvities {126.583) 1192,410 Anatysb of cash and cash equlvalents At31 March 2022 At31 March 2023 Movement Cash al bank and in hand Investment cash 4.632,795 599.755 {60,6281 1457,618) 4,572,167 142,137 5,232.550 1518,246) 4.714,304 Page 78 st Michael's Hospice Hasting$ and Rother Notes to the financial statements For the year ended 31 March 2023 Statutory information St Michael's Hospice Hastings and Rother is a private chantable company limrted by guarantee. registered in England and Wales. The company's registered number and registered oftKe address can be found in the reference and *lrninL%tratNe details in the Report of the Trustees. A¢counllng polkles Accountlng conventlon The financial stslements of the charitable company, wh￿￿ is a publ￿ benefit entity under FRS 102, and group have been prepared in accordance wrth the second edrtK)n of the Charities SORP IFRS 1021 'Ac¢ounting and Reporting by Charities". Slalement of Recommended Practice applicable lo chari(ies preparing their account5 in acccKdance wrth the Financ￿1 Reporting Standard applicable in the UK and Republic of Ireland IFRS 102). Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of IreLgnd' arKI the Companies Act 2006. The financial statements have been prepared und* the historical cost convention. with Ihe ex¢eptK)n of investments which are included at market value. Going conc8m At the tiffE crf approving the financial statemenls. the tnJstees have a reasonable expectation that the Charty has adequate resources to continue in coerational existen￿ for the foreseeable future. Given the Charity's finarrial posrtion, level of reserves and future slra¢egic plans. the trustees continue to adcyt the going concem basbs of accounting in preparing the financial statements. In¢omlng resources All incoming ￿sourceS are included ￿ the SL*ement of Finanoal Adivitw when the charty is legally enlrtled to the inc¢￿e and the amounl ￿ be quantffied with reasonable accuracy. 2.3.1 Gifts in kind Gifts donated for resale are included as income when they are sold. Donated items for use in the Hospice are valued at a reasonab￿ app￿xIMat￿)n lo market value. Donated facilities are included at the value lo the charrty where this can be quanlrfied and a third paty is bearing the cost. No amounts are induded in the financ￿ Statements for servw donat￿ by VC￿￿ntee￿. 2.3.2 Fees, ¢ontribLrtions arKI grants These comprise amounts re￿Nable during the yew. 2.3.3 Voluntary income Voluntary income represents affK)unt$ [￿1Ved during the year. 2.3.4 Leg￿leS ReversKJnary legacies are accounted for on receipt. Pecuniary and residuary le9acie5 are accounted for.al the eartier of receipt of the legacy or the point al vthich the final accounts of the estate are agreed by the charty. In the event that legacies are settled after the accouTrb"ng year end they are included in Ihe accounts provided the chanty was certain of the amounts to be distnbuled al the balance sheet date. The hosp￿ ttas received notification of a nmiber of lega￿ wth.ch have not been irLluded in these ounts beeause they ale not certain in value c( eertain of reeeipl. 2.3.5 Investment income Investment inc(Mne comprises wnounts receivable during the year. PaF 29 St Michael's H￿pICe Hastings and Rother Notes to the financial statements {continuedl For the year ended 31 March 2023 Accountlng policies {continued) 2.3.6 Shop income Shop income gwwated by one of the trading SubS￿lar￿ represents net invoiced sales of gcods. excluding value added lax. 2.3.7 LcAtery income Lottery income generated by one of trading subsidories represents t￿ke1 sales received in respect of lotteries held during the year and scr8l¢h card Sa￿5. Income tsckets sokl in &Jvance of a draw being held is camed forward to the period in which the draw tskes place. 2.3.8 Debtors Income resources recognised in the year but not ￿eNed al the year end a￿ included wrthin debtors unless there are doubts as to the ests"mat*)n of value or Iikelibood of receipt. Resou￿•$ expended Liabilrtjes are recognised as expendilure as soon as there is a *al L*ligat￿n or constructive obligatton ¢wmitting the chanty lo that expendrture. it is protsab￿ Ihal a Iransfer of econom benefits will be required in settlement an¢J the anY)unl of the Obl￿at￿n Can be measured reliably. Expenditure is accounted for on an accruals basis and has been Classrfied under headings that aggregate all cost ￿lated lo the category. Where ¢osl cannot be directly attributed lo particular headings, they have been alkjcated to ￿tiV￿leS on a basis consistent with the use of resources. Allocation and apportionment of ¢osts Where costs cannot be directty attribuied to part￿￿k￿r headir¥J$ they have been allocated lo activities on a basis consistent ￿th the use of resources. Tangible fixed assets DepTeciation is provided at the folkxing annual rates in order to wnte off each asset over its estimated useful lrfe. Freehold pro￿rtY Ftxiures, fittings and equipmenl Motor vehicles 2% and 10% on ￿51 15% to 33% on cost 25% on ￿st Where extensions and improvements have been made to freehold priwerty, deprecthn has been charged over the remaining lrfe of the undedying propety. No depW1at￿￿ is pro¥bJwl on trethkl Lqnd. Investments Listed investments are included at Ma￿et value at the year end. Gains and losses on disposal and rev￿UatIon of investments ¥e charged or credited to the Statement of Financial Activit*s. st￿ks Stocks are valued at the lower of cost and net re*isable walue. after ff&king due all¢)wance for obsolete and slcmf moving items. t)onated items are not valued until sold. Consequenty, no value is attribLrted to Iheir stock carrying value, as this cannot be delemiir*ed with certainty until SOKI. Page Xl St Michael's Hospice Hastings and Rother Notes to the financial ststements (continued) For the year ended 31 March 2023 Accounting pollcles (continued) Leasing commitments Operating leases and the payments made under tWI are charged to the profrt and loss ￿OUnt on a straight line basis over the ￿ase lemi. 2.10 Taxation The charrty is party lo a group regislratK)n for VAT puws and i8 the￿fOre able lo recover some but not all of the VAT the charity incurs. Irreeoverable VAT is charged as a single ilwn in the SL*ement of Finar￿181 Actmbes. The charity 15 exempt from corporation tax on tts ch￿"table actbviiies and therefore no promsicm has been made for either Corporati￿ tax or deferred tax. Vthere a trading subsidiary is registered for VAT the expendrture is shown excluswe of VAT. Both trading subsid1￿leS have entered an 4reemenl to covenant their L￿ble profts lo the parent uNJertaking and therefore no cwth.on tax proviwn is required. 2.11 Fund accounting In the Trustees, opinm, certain exceptv)ns. the Inec￿1n9 restyjrces and resources expended are all derived for the benefrt of running the HOSp￿e. Therefore, the Trustees eh¢)ose lo cL9ssfy all income and expenditure as ltnrestr￿ted. In certain instances. funds may be designated by the Trustees for specrfic purposes. Where funds are received for a sign[f￿ant and specft woiect these are allctated lo Testricled funds. These funds are then used lo r￿[ the caprtal costs of that specific project by way of an annual depfeci*ion charge sel against Ihe rests￿ed fund. Any funds received in excess of the capital quiremenls of the project be used to he￿ wth the associated future running costs of lh8 project. (Xher restrthd funds are those funds donated for purposes specifi&J by the donor aThJ these are tracked and expended in accordan￿ with the ¢Yonors' wishe$. 2.12 Penslon costs and other post4etiremenl benefits The chantable company operates a defined ¢onlributKJn pensK)n scheme. ContribylKJns payable lo the charitable company's pen$K)n scheme are charged to the Statemet)t of Financial Activities in the perpJd to which they rek81e. 2.13 Critical estimates and judgements Managernent have made certain eslinates and jUdge￿ts in the preparation of the financial statements of the HosP￿e. Estimates and Ivdgements are continualty evaluated and based on historical experience and other factors. including expectations of future even15 that are believed to be reasonable underthe circumstances. Although these estimates are based on management's best knowledge of the amount. events or ￿tiOnS, actual re$ulls may differ from those estimates. The Trustees consider the eValU*￿n of the useful econom￿ life of fixed assets and the ftrture receipt of gacy debtors at the year end to be the areas of iudgenw)t with a signrf￿ant effect on the financial sL*ements. Page 31 St Michael's Hospice Hastings and Rother Notes to the financial slatements {continued) For the year ended 31 March 2023 Oonations and legacies 2023 2022 Donations arKI grfts In memoriam Regular g1VK￿ and Grfl Aid Legacies Grants receNed 474,561 203,137 110,237 2.092,892 123,172 450.098 208.035 100.289 1,510.700 345,353 3.CQ3,999 2,614,475 2023 2022 Grants from govemmenl sources r￿eNed. irKluded in the above. are as fdlrms". CJRS Furlough income Sector support grant Iwa Hospice UK} 16,770 220,336 Tradlng aclivlties 2023 2022 Trading subsidiaries Lottery income Retsil irwme 887,955 650,959 919.526 534.125 1,538,914 1,453,651 2023 2022 Other tradlng aclivlties Fundraising events Arthur Easton hall hire Coffee shop and caterin9 Sundry income 316,385 8,795 449 178.107 265,125 2,725 2,096 23,744 503,736 293.690 Pa¢È 32 St Michael's Hosplce Hastings and Rother Notes to the financial statements Icontinued) For the yearended 31 March 2023 Investment incoffle 2023 2022 Income from UK listed investrnents Deposit acc¢wnl interesl Rents 122,969 12,647 5.700 80.137 25.381 5,700 141,316 111,218 Income from charitabl• aclivities 2023 2022 Giants PaI￿nI incc4 2.354.417 1.759 2.362.783 909 2.356.176 2.363.692 2023 2022 Grants from govemmenl sources received, included in the above. are as folbws: Hastings arKI Rolher ICB 2.354,417 2.362.783 Paee 33 St Michael's Hospice Hastings and Rother Notes to the financial statements {continued) For the year ended 31 March 2023 Raising funds Trading companies, Costs Raising donation$ Total 2023 Staff costs Cost of sales Lottery PrEes Prwnises Depwalion Other direcl costs 425,577 466,W9 32,299 235,596 112,052 23,233 97.900 891.586 32.299 235,596 138,462 42.576 250,513 26,410 19.343 152,613 623,943 7,089 1.591,032 2022 comparatlve Trnding ompanie$' ¢osts Rai$ing donations Total 2022 Staff costs Cost of $818S Loftery Prizes Premises DepwAation Olher direct costs 394.273 3￿.812 94,$34 193,953 144,535 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 1,398,606 PaEe 34 St Michael's Hospice Hastings and Rother Notes to the financial ststements (continued) For the year ended 31 March 2023 Charitable activitles costs Support costs (Note 101 Direct costs {Note 9) Total 2023 Hospice Se￿IceS Other 4,781,541 1,020.872 100.752 5,802,413 100,752 4.781.541 1,121.624 5.903,165 2022 comparative Support costs INote 101 Dlrecl costs (Note 9 Total 2023 HospK8 seThies Other 4.621,112 811.418 122,564 S,432,530 122.564 4.621.112 933.982 5.555.094 Direct costs of charitsble actNities 2023 2022 Staff costs Clinical costs Training costs Premises Depreciati￿) Other direct costs 3,599.491 424.268 48.792 214,722 1 $7,268 337.OCK) 3.600,584 342,012 50,298 223.536 183,658 221.024 4,781.541 4,621,112 Page 35 St Mlchael's Hosplce Ha$lings and Rother Notes to the financial statements (continued) For the year ended 31 March 2023 10. Support costs Support costs are as folkm". 2023 2022 Stsff costs Rales and w*er Insurance L￿h1 and heat Te￿phOne Postage, stationery and IT Sundries Propety rental Repairs and maintenance Freehold Pfopety depre¢iatK)n 851,279 1.293 8.998 15.157 5.140 49.376 33.021 9,106 17.694 29,808 759.929 354 2,215 3.886 1.628 7.086 16,344 4,526 6,059 9,391 1.020.872 811.418 Governance costs 2023 2022 Bank charges Legal and professKJnal fees Auditors. remuneration Auditors. rem[Anerat￿ in respect of accountary and other seThKes 7.484 64.555 24.804 6.634 81.990 17.710 3.￿9 16.230 100,752 122,564 11. Net •nc(Mnelexpenditure 2023 2022 Audrtors. remuneration for Charity audit Current year Prior year Auditors. femuneration in respect of accountsnry and other services, including the audit afKJ ￿un￿nCY fees of subsidiaries Depreciat￿n Surplus on disposal of fLxed assets 24.804 13.150 3.9)9 229.653 153,073 16,230 237,808 Pa8e 36 St Michael's Hospice Hastings and Rother Notes to the financial ststements Icontinued) For the year ended 31 Mar¢h 2023 12. Trust8K' remuneratlon and bgneffts There was no Trustees, remuneralh)n or other beneffts foT the year ended 31 March 2023 nor for the year ended 31 March 2022. TNstees' expenses No expenses weve reimbursed lo ary Tntstee in the year to 31 March 2023 nor forthe year ended 31 March 2022 13. Staff costs 2023 2022 Wages and salaries Social srfurity wsts Other pensKJn costs Temporary. I￿￿M and other non-salar*d staff costs Other staff costs 4.519,842 432.175 339,246 133,757 4,407.633 380,011 324,949 39.005 5,488.1]64 5,151.598 The average monlhty numbw of empbyees (based on head countl during the year was.. 2023 Number 2022 Number Nursing and medtal Catering and housekeeping MaintenarKe Tfaining Fundraising Administration Befeavement Lottery Retail 88 10 99 15 10 25 23 19 17 175 183 Pa8e 37 St Michael'$ Hosplce Hastlngs and Rother Notes to the financial statements (continued) For the year ended 31 March 2023 13. Staff costs Iconlinued The numbers of employees whose er￿lumentS for the ￿ fell wrthin the folk)wing bands were: 2023 Number 2022 Number £60.000 10 £69.999 £70.000 10 £79.999 £80.000 10 £89.999 £90.000 10 £99.999 £100.000 10 £109,999 The key management personnel comprise members of the LeadeT5hip Team. The lolal empbyee benefits of the key management personnel of the charity were £580,642 (2022- £597,564). 14. Gain$lllosses) on inveslments 2022 Realised gains Vnreah'sed gaIn￿(lO$Se$) 44.798 {380,3481 68,994 178,6111 {335.5501 {9.6171 Pap 38 St Michael's Hospice Hastlngs and Rother Notes to the financial statements (continued) For the year ended 31 March 2023 15. Cornparatives for the statement of flnancial activities 2022 Total funds Unrestricted funds Rostricted funds Income and endowments Irom Donations and lega￿e$ 2,478,335 136,140 2,614.475 Charilable activities Hospice swvices 2.363,692 2,363.692 Subsidiaries. trading actmties Other trading activit*s Investment income 1,453,651 293.69) 111.218 1,453.651 293.690 111,218 Total 6 836 726 Expenditure on Raising donations Trading cOmpan￿s, c05t5 514.385 884.221 514,385 884,221 Charitable activities Hospice services 5.514.014 41.080 5.555,094 Total 6.912.620 41.080 6.953,700 Net {lossesVgains on Investments (9.617) 19,6171 Net income {221.6511 95.￿0 (126,5911 Transfers between funds 1.473 (1.4731 Net movement In funds (220.178) 93.587 1126,5911 Reconciliation of funds Total lunds brought forwa 15.657,224 106.441 15,763,665 Total funds carrled forward 15.437,046 200.028 15,637,074 Page 39 St Ml¢hael'$ Hospice Hastings and Rother Notes to the financial statements Icontinued) For the year ended 31 March 2023 16. Tanglble fixed assets Group Freehold property Assets undor onslruction Fixtures flttings and equipment Motor vehicles Tots Cost At 1 April 2022 Addrtions Disposals 6.378,309 1.222.156 184.387 161,506 7,765.471 184,387 1111,670) (85.9781 125.6921 At 31 Ma￿h 2023 6.292,331 1.406.543 135,814 7,838,188 Depreciation At 1 April 2022 Charge for year Eliminated on disposal 1.792.204 157.281 (32.038) 1.114.193 148,498 6.729 {25,642} 3,054.895 229.653 157.680} 65,643 At 31 March 2023 1.917.447 1.179.836 129.585 3,226.868 Net book value Al 31 March 2023 4.374.884 3,500 226,707 6,229 4.611,320 At 31 March 2022 4.586,105 107.963 13.008 4,710.576 Included in freehokl propety is land of £152,761 {2022 - £152,761} which is not depreeialed. PaEe40 St Mlchael's Hospice Hastings and R¢)ther Notes to the financial statements (continued) For the year ended 31 March 2023 16. Tangible fixed assets leontinued) Chafity Freehold Assets property under conslrudlon Flxiures fittings and equlpment Motor vehicle$ Tota18 Cost Al 1 April 2022 Addrtions Disp05als 5.412.821 1.197.269 181.705 121.814 6,735,404 181,705 186,4781 {85.9781 {5CQ) At 31 MaKh 2023 5.326.843 3.500 1.378.974 121,314 6,830,631 Depreciation Al 1 April 2022 Charge for year Eliminated cm disposal 1.567.264 135,746 {32.0381 1.089.937 63,946 108,8(E 6,729 (4501 2,766.￿7 206.421 132,488 At 31 March 2023 1.670.972 1.153.883 115,085 2,939.940 Net book value Al 31 March 2023 3,655,871 225.091 6.229 3,890.691 Al 31 March 2022 3,845,557 107.332 13,008 3.969,397 Pale 41 st Mi¢hael's Hospice Hastings and Rother Notes to the financial ststements (continued) For the year ended 31 March 2023 17. Fixed asset investments Group Listed investments Cash held for investment Totsls Market value Al 1 April 2022 Atldthons Disposals Revaluations Cash movement 5.512.049 1,879,708 11.321,070} {338,5331 599.755 6,111.804 1,879,708 11,321,070> 1338,533) 1457.618} 1457,6181 At 31 March 2023 5.732.154 142,137 5,874,291 Net t￿0k value At 31 March 2023 5.732,154 142,137 5,874,291 At 31 March 2022 5.512.049 599,755 6,111,804 Charity Shares in group undertakings Listed investments Cash held for investment Totsls Market value At 1 April 2022 Addrtions Disposals Revaluations Cash nv)vement 101 5.512,049 1,879,708 (1.321,0701 (338,533) 599.755 6,111,￿5 1.879.708 11,321,070} {338,5331 {457,6181 (457,6181 At 31 March 2023 101 5.732.154 142,137 5.874.392 Net book value At 31 March 2023 101 5.732.154 142,137 5,874.392 Al 31 March 2022 101 5.512.049 599,755 6,111.905 There were N) investment assets 0[ts￿e the UK. Pay 42 St Ml¢hael's Hospice Hastings and Rother Notes to the flnancial statements lconllnued) For the year ended 31 Mar¢h 2023 17. Fixed asset investments (continuedl The charrty holds 20% or of the Sh￿ capital of tr* folkxing compan*s.' Company Country of incorporation Shares Class Sl Michael's Hospice {Relaill knmited- 02404963 EngLand & Wales Ordinary Sl Michael's Hospice Lottery Limited- 03351501 EngLAnd & Wales Ordinary lO￿A 10 Sl M￿￿1.$ H05pirE (Relaill Lwnited operates many th*ity shr•s. St Mthael's HOsp￿e Lottery Limrted supports the H05pice through fvndraising largety from the cperation of a k)ttery. Both companies covenant their ￿￿￿)le profts to the parent company where px)ss1b￿. A summary of the resum of these undertakiThJs ts set out below.. St Michael's Hospice (Retsill Limited 2023 St Michael's Hospice Lottery Limited 2023 2022 2022 Tijmover Cost of sales 647.772 132.299) 516.745 (94.5341 887.955 (235,596) 919.410 1193,9531 Gross profit 615.473 422.211 652.359 725,457 Administrative expenses Other income 1652.464) 3.187 1555.275) 17.381 {134.446} 1115,343) 116 Net profivllossl 133.8041 (115,6831 517.913 610.230 Asset5- fixed arKI current L￿blIrtIeS 786,813 11.010,6571 8C6,407 (M.447) 120,124 1120.0501 151,530 {151,456) {223.8441 {1￿.040) 74 74 Share caprtal Retained reser 11)0 {190,1401 {223.9441 73 73 {223,8441 {1￿,1)40) 74 74 Page 43 St Michael's Hospice Hastings and Rother Notes to the financial statements (continued) For the year ended 31 March 2023 18. Stocks Group 2023 2022 Str￿ks 25,140 17,226 Charity 2023 2022 St(Kks 24.163 15,643 19. Debto Group: Amounts falllng duo wlthin one year 2023 2022 Trade debtors Other debtors and prepayments VAT 46,692 130,555 51,158 359.737 135,934 1C6,540 47,259 350,767 Accru￿ income receivab 588,142 640.500 Charlty: Amounts falllng due within one year 2023 2022 Traje debtors AnKJunls owed by group undertakings Prepayrnents VAT Aecrued irKcAne receivable 46,129 152,732 123,647 47.295 359,737 118,473 146,799 101,403 37.966 343,024 729.540 747,665 Charty: Amounts falling due after one year AnKJunts owed by group underfakrys 852,000 852,0 1,581.540 1,599,665 Amounts falling due after than one year relates lo a knan to Sl M￿ael'S Hospice (Retail) Limited, in order lo purchase a warehouse. Inleresl is being chafged al 2_75QA 12022 - 2.5%) per annum, wrth £23,43012022 - £21,300) being receNed during the year. There are no fixed temis tor repayment but the Trustees have given assurances that repayment won't be sought before January 2025_ Page44 St Michael's Hospice Hastings and Rother Notes to the financial statements lcontsnuedl For the year ended 31 March 2023 Creditoys Amounts falling due within one year Group 2023 2022 Trade creditors Pension credrtor Lottery tieket sales paid in adv￿Ce Other e￿drto￿s Accruals and defer￿d income 94.362 46.450 97.573 1.394 79.813 169,255 46,491 108.648 6,456 144.977 319.592 475.827 Charity 2023 2022 Trade credf(ors Pension ¢redil(Y Other creditors Accruals and defeffed income 87,706 46,450 303 59,302 140,394 46,491 5,152 134,586 193.761 326,623 21. Operating leasè commitments Minimum lease payments under non•cancellable operating 1th75es fall due as follovts: Group 2023 2022 Expiring.. Wrthin one ye Betsveen one and fve years In more than fNe years 56,751 3,971 55,215 36,438 60,722 91,653 Charity 2023 2022 Expiring.. Within one year Betsveen one and fNe years In more than five yeors 16,276 2,237 19.633 16.622 18.513 36.255 PaEe 45 St Michael's Hospl¢e Hastings and Rother Notes to the financial statements (continued) For the year ended 31 March 2023 Pension ¢¢)mmltments For qualifying St m￿hael'S Hospice Hastings and Rolher staff. participation in the NHS Superannuation Scheme provKles benefits based on final pensionable pay, a defined benefft scheme. The contribulions paid by the charity in fespect of the NHS Superannuation scheme are accwnled for as rfthe scheme was a defined conlnbution scheme as the charty Is un8ble lo identify ils share of the undertying assets and l￿bil￿eS in the scheme. The Government Actuary. using the Projected Unlt Method, detennines contributM)ns Charged to the Statement of Financial Actrvities. For stsff that (Jo not qualfy to jtyn the NHS Superannuation Scheme, the charty operates Iwofurther defined contribution pension schemes. Contributh￿S are charged to the S&*ement of Financial Activities in the perirAI lo which they rel*ed. The totsl Contribut￿nS paid to both pension schw*s for the year ended 31 March 2023 are shown in note 13. The amount QLrtstanding at the baLa￿e sheet dale is £46.450 {2022- £46.491}. Pap 46 St Michael's Hospice Hasting$ and Rother Notes to the financial slatements (continued) For the year ended 31 March 2023 Movement In funds Currnntyear At Net movement Transfers At 1 Aprll 2022 In funds betW￿n funds 31 March 2023 Unrestrlcted funds General fund Fixed asset5 Strategic Developm*rt fijnd Contingency frJr 5.326.470 4,710,576 2.000,000 3.400,000 15.437.046 {17.513) (2C6.419> {107.1631 107,163 5,201,794 4.611,320 2.000,￿0 3.400,￿0 15,213.114 (223.932} Restricted funds Rolling equipment placement Olher funds Syslmone Implementation The Nat￿)nal Lottery Compassionate Community Fund RC London arKI South East Region 83.288 47.115 25.730 (34.145) 6,396 (25.730) 49,143 53,511 43.895 200.028 18.195) (61.6741 35,700 138,354 Total 15.637.074 {285.6￿) 15.351,468 Net movement in funds. inchjded in the atx)ve are as fOllry￿.' Incoming vesour¢es Galns and Movement In funds expended Unreslricted funds General fur Fixed asset furKI 7.368.546 {7.050.5091 (2C6.419) 1335.550) 117.5131 1206,4191 7.368.$46 {7.256.9281 (335,550) 1223.9321 Restricted funds Rolling equipment replacement Other fvnds Systmone Implementst The National Lottery CompasshJnate Community Fund RC London and South East Region 41.713 77.771 (75.858) 171,375) (25,730) 134,1451 6,396 {25,7301 56.111 164,3C61 (8,1gsi 175595 Totsl funds 7.544.141 (7.494.197) 1335.550) 1285,6061 Page 47 St Michael's Hospice Hasting$ and Rother Notes to the financial statements {¢onllnued) For the year ended 31 March 2023 23. Movement in funds Icontinuedl Comparative year At Net movement Transfers At 1 April 2021 in funds between funds 31 March 2022 Unrestricted funds Gene￿1 fund Fixed assets StrategK Development lurKI ConlirKJeney fund 5.336.522 4.920,702 2,000,000 3.400,C()o 15.657.224 {20,871) [2￿.780) 10,819 19.346) 5.326,470 4.710,576 2.000,000 3,400,000 15,437,046 {221.651} 1.473 Reslricted funds Rolling equipment replacemenl Other lunds Systmone Implementath)n The National Lottery Compassionate Communty Fund RC London and SoLrth East Region 52.987 53.454 30.441 1S.OC61 25.730 (1401 11.3331 83,288 47,115 25.730 43.895 95.1%0 43.895 21J).028 1(E,441 11,473) Totsl 15.763.665 1126.5911 15,637,074 Nel movement in furKls, Incl￿ in the above are as folkyws.. Incoming resources Gains and losses Movemgnl in funds expended Unrestricted funds General lund Fixed asset fund 6.700.586 (6.711.840) (2CKJ.7801 19.617) 120.871) {200.7801 6,700.586 (6,912.620) 19.617) {221.6511 Restricted funds Rolling equipment replacement Other funds Systmone ImplementatTon The National Lottery Compassionate Communrty Fund RC London and South East Region 42.649 15,468 25.730 {12.2081 {20,474} 30.441 {5,OC6} 25,730 52,293 (8.3981 43,8gS 136,140 141.080) 95.060 Total funds 6.836.726 {6,953,700) 19.617) (126.5911 Page 48 st Mlchael's Hospl¢e Hastings and Rother Notes to the flnancial ststements (Continued) For the year ended 31 March 2023 23. Movement In funds (Continued) Unrestricted funds The Trustees have applied the funds as sh(Mn above. Of the available funds held at the yearend £4,611,32012022 - £4.710,5761 is hekl in the fomi of laTrJ and buiklings and other tsngible fixed assets. Contingency funds are cakulaled each year xcording to the reserves policy sel out in the Report of the Trustees. Thts pcAicy *Jentffies the cash resources needed to sustain iwefve months of net running costs in the event of a severe d(ywnturn in voluntary income. The Trustee5 have retained a designated Conbngeney fuThJ of £3,4CKI.(#JO12022- £3.400.c￿)o). The Trustees have retained a designated strateg￿ Developrrknt fund d £2,OW,OCrf) {2022 - £2.000,0001. The general fund at the year*nd of £5.201.794 (2022 - £5.326,470) represents fvnds available lo the Truslees to pursue and fvrther the activilies of the Hospice. Restricted funds Rolling Equipment Repl￿ement - funds received to purchase new or upgrade existing equipment are recorded within the Rd11￿￿ Equipment RepLacement fvnd. FuTrJs received during the year were all fully expended in a￿rdance ￿th their restrict￿n. unless stsled otherwise. The addiltonal balance camed forward on the fund represents fKxed assets hekl on the balance sheet. Otherfunds-funds receNed for 5peCrf￿ Serv￿ or pmision ofsmall equiprnent wherethe balance remaining al the year eThY is less than £5,000. Transfers cxrt of restricted funds represent unspent balarKes releasedfrom reSt￿tIOn in accordance th the temis of the onginal dOnat￿n$. Page49 St Mi¢hael's Hospice Hastings and Rother Notes to the financial ststements (continued) For the year ended 31 March 2023 Nel Assets by fund- ¢urr•nt year Group Unrestrided fvnds Restricted funds Total funds Tangible fixed assets Investments Current assets Cufrenl Ikqbilrties 4.611,320 5.874,291 5.047,095 {319,S921 4,611,320 5,874,291 5.185,449 1319.592) 138.354 15,213,114 138,354 15.351,468 Charity Unrestricted funds Restricted funds Total funds Tangible fixed assets Investments Current assets Current Ikqbilities 3.890.691 5.874.392 5.865.660 {193.7611 3.890.691 5.874.392 6.C(14.014 {193,761) 138.354 Net assets 15.436,982 138,354 15,575,336 Net assets by fund- comparntive year Group Unrestricted funds Restricted funds Total funds Tangible fixed assets Investments Current assets Current liabilf( 4.710.576 6.111,804 5.090.493 1475,8271 4.710.576 6.111.804 5.290.521 1475.827) 200.028 15.437.046 21)).028 15.637.074 Charity Unrestricted lunds Restricted funds Total fund5 Tangible fixed assets Investments Current assets Current liabilrties 3.*9.397 6.111.905 5,872.434 (326,6231 3.969.397 6.111.905 6.072,462 1326,6231 2C(1.028 Net assets 15.627.113 21)0.028 15.827.141 Pale Xl St Michael's Hospice Hastings and Rother Notes to the financial statements (continuedl For the year ended 31 March 2023 Contingent liabillties There were no conlingenl liabithl*s as at 31 March 2023 ncff at 31 March 2022. Capital commitinents The charty had no budding commilments as at the year-eTrJ12022 - £nill. Contingent assets The charty has been rbOtir￿ of one {2022- one) wh￿h i8 sufy.ecl to a lrfe tenancy or other such condition. The lotal am¢)unt of the kgary is estimated at £100.00012022 - £1CKJ,OWI. It ha5 not been included in the accounts. 28. Related party transactions The tharity haj the folbw.ng transaetions wth rts subsidk8ry ctynpanies during the year St Michael's Hospl¢e {Retall) Lirnited St Mi¢hael'$ Hosplce Lottery Limited 2023 2022 2023 2022 Inwme during the year 422.341 360,575 631,082 709.339 Expenditure during the y•ar Balance receivable at the year end ,195 961.169 8,472 37,530 Income is generated from a donation of proffts or a recharge of costs incurred on behaw of the subsidiaries. Expenditure is the reimbursement of reasonable costs incurred by the subsidiaries in the course of ￿rryIng out their business. There are no other transactions with related parties to disclose. 51