OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

2021-03-31-accounts

Company number: 02000560 Charity number: 293968

Pilgrims Hospices in East Kent

Report and financial statements For the year ended 31 March 2021

PILGRIMS HOSPICES IN EAST KENT (A Company Limited by Guarantee)

REFERENCE AND ADMINISTRATIVE INFORMATION FOR THE YEAR ENDED 31 March 2021

Trustees R J Davis FCA TEP – Chairman and Treasurer (retired June 2020)
S Bates LLB. (Hons.)
P Bradshaw
G Connor (resigned 29 December 2020)
S Cuomo
H Harrison (resigned 1 June 2020)
M Laing (resigned 8 December 2020)
S Oriel MA (Cantab)
S Perks
E Sharp MB BS, FRCS
K Warden – Deputy Chair and Chair from 8 December 2020
P Williamson (resigned 22 October 2020)
Dr R Wilson
Company registered 02000560
number
Charity registered 293968
number
Registered office 56 London Road
Canterbury
Kent
CT2 8JA
Independent auditor Sayer Vincent LLP
Invicta House
108-114 Golden Lane
London, EC1Y 0TL

Page 1

PILGRIMS HOSPICES IN EAST KENT (A Company Limited by Guarantee)

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 March 2021

The trustees are pleased to present their audited annual report together with the consolidated financial statements of the charity (and its subsidiary) for the year ended 31 March 2021 which are also prepared in order to meet the requirements for a directors’ report and accounts for Companies Act purposes.

The financial elements comply with the Charities Act 2011, the Companies Act 2006, the Articles of Association, and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

STRUCTURE, GOVERNANCE AND MANAGEMENT

Pilgrims Hospices in East Kent is a registered charity and company limited by guarantee. The guarantee of each member is limited to £1. It was incorporated on 14 March 1986 and is governed by its Articles of Association. The charity was established to promote the relief of sickness and suffering for persons living or working in east Kent.

GOVERNANCE

The charity is governed by a Board of trustees numbering not less than five and not more than eighteen. As at 31 March 2021 there were eight trustees, following the resignations of Richard Davis and Hereward Harrison in June 2020, Paul Williamson in October 2020 and Margo Laing and Graham Connor in December 2020. The Board governs in accordance with the Articles of Association and trustees bring relevant experiences and skill sets from a variety of sectors, as determined by a regular skills audit of the Board, from which recruitment is driven. Over the period of this report, the sectors include, for example, clinical, business, spiritual/religion, retail, HR/education, legal, accounting, PR, and IT.

As noted above, Richard Davis retired as Chair of the Board of Trustees in June 2020, after 28 years of dedicated service to Pilgrims. Pilgrims has been hugely fortunate through Mr Davis’s tenure to have benefitted from his insight and experience; He worked tirelessly in support of Pilgrims and has been instrumental in everything that Pilgrims has achieved. Mr Davis’s dedicated commitment and leadership ensured that Pilgrims was able to successfully respond through the initial critical phase of the COVID-19 outbreak. Karen Warden took on the role of Acting Chair following Richard Davis’s resignation and was appointed as Chair on 8 December 2020, following a recruitment campaign overseen by the Nominations and Governance Committee. Hereward Harrison, Paul Williamson, Margo Laing and Grahame Connor all resigned as trustees in October and December respectively for which the Chair thanked them for the immense contribution they had made to Pilgrims over the years they had been involved with the charity.

New trustees are appointed initially by the Board following a formal process which includes interviews by a sub-committee of the Board and by the Chair and Chief Executive, leading to a recommendation by the subcommittee to the Board. Applicants are sought from a combination of publicly advertised vacancies and personal referrals. Successful applicants are subject to re-election by the members at the next Annual General Meeting following their appointment by the Board. Procedures are in place for trustee induction and development. Training of the trustees is reviewed against individual training needs and a full introduction and induction to the organisation is given to new trustees on and shortly following their appointment. Discussions have taken place with the National Council for Voluntary Organisations (NCVO) to work with the Board to develop its Board Development programme that will be taken forward during 2021-22.

Trustees are appointed for an initial three-year term and may be re-appointed for two further three-year terms. A trustee who has served for 9 years can only be re-elected by unanimous resolution of the members and for a term not exceeding 5 years. There were no new appointments to the Board during this period.

The Board normally meets four times a year to review strategy and performance and is supported in its work by a number of trustee-led sub-committees.

The Board recognises that good governance is essential for the success of the charity and has made good progress in developing its governance policies and practices in line with the principles set out in the Charity

Page 2

PILGRIMS HOSPICES IN EAST KENT (A Company Limited by Guarantee)

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 March 2021

Governance Code for larger charities. The Nominations and Governance Committee will continue to review progress with the full implementation of the Code through an action plan developed from the diagnostic tool made available from the Charity Commission.

OUR COMMITTEES

Board committees have delegated powers of responsibility but executive authority is retained by the Board. They are chaired by a trustee, have written terms of reference and provide linkage to the main Board and support to senior management. Trustees are selected as committee members having regard to their skills, knowledge and expertise and committees may include appropriately qualified individuals (thinking partners), who are not trustees, co-opted from outside the charity. Members of the Executive Management Team also attend committee meetings relevant to their professional area of expertise. Each committee reports to the Board on any major issues discussed, with recommendations where decisions are required. Minutes of committee meetings are circulated to the Board as a whole and each Committee identifies areas for consideration by other committees thus ensuring no Committee works in isolation.

The Finance Committee oversees the finances of the charity and its subsidiary company. It is responsible for reviewing and recommending to the Board the financial strategy along with the annual budget and monitors performance against these. The Committee also oversees the strategy for investing funds and keeps the Board informed of relevant general changes in the financial environment. It reviews risk plans and corporate risks relating to finance, investment and audit. The Committee reviews the annual accounts and manages Pilgrims’ relationship with the external auditors as well as monitoring their performance on an annual basis.

The Income Generation Committee supports all fundraising activities of the charity, as well as communicating the hospices' vision, mission, and services to patients, carers, healthcare professionals and the public. It reviews the fundraising plans and retail strategies (for instance, the opening of a new shop) before referring them to the Board for approval, as well as monitoring risks relating to Pilgrims’ income generating activities.

The Quality and Governance Board provides the Board with assurance concerning all aspects of quality and safety relating to the provision of care and services in support of getting the best clinical outcomes and experience for patients, carers and their families. The Quality and Governance Board oversees the content and effectiveness of the structures, policies, systems and processes for quality assurance, clinical, information and quality governance. It assesses current and future risks to quality and safety which may be included in the clinical services and other risk registers. It advises the Board on any significant issues regarding quality, risk or compliance issues. The Quality and Governance Board is also responsible for overseeing matters relating to information governance. Issues relating to information governance are handled by the Information Governance Group, which reports to the Quality and Governance Board.

The Major Projects Committee met regularly during this period to consider the current and future real estate requirements of Pilgrims Hospices and to progress the proposed refurbishment and new build projects in line with the strategy and budget approved by the Board of Trustees. The Committee considered the current and future operational needs of Pilgrims Hospices and how these needs could best be addressed through redevelopment and refurbishment of the current sites whilst engaging with architects, surveyors, solicitors, financial advisers and sales and marketing agents in developing appropriate plans.

The Remuneration and Workforce Committee meets regularly to review terms and conditions of employment and to set the overall remuneration policy. Pilgrims Hospices is committed to ensuring that the salary levels paid across the organisation remain competitive and that staff are rewarded fairly for the work they do.. Pilgrims Hospices has a clear policy on how pay is set and arrived at in the organisation.

The Nominations and Governance Committee considers the corporate governance of the hospice. It reports to the Board on any changes that may need to be made in order to comply with legal and regulatory requirements. It also reviews the Board's skills mix and capabilities and makes recommendations on nominations for new membership to underpin the Board's capability and diversity and to provide robust governance and directorship of the hospice.

The Clinical Service Development Committee was created in 2020 in order to develop clinical service

Page 3

PILGRIMS HOSPICES IN EAST KENT (A Company Limited by Guarantee)

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 March 2021

proposals and service redesigns in line with our agreed clinical strategy. It will review our Think Talk Act Be Programme (TTAb,), consider our response to the reorganised architecture of the Health and Social Care sector, and the continuing impact of Coronavirus (COVID-19) on service delivery and the views of our supporters. The Committee will ensure that any service proposal remains in line with our charitable objectives and is sustainable from both a financial and service perspective. The Committee considers the needs of our stakeholders when developing service proposals. The Committee will help define Pilgrim’s role as an intelligent provider that can influence and educate both commissioners and other providers across the local health economy whilst ensuring Pilgrims delivers services that are integrated across the end of life and palliative care pathway.

The Chief Executive and the Executive Management Team have delegated authority to manage the charity’s operations on a day to day basis, within the annual budget approved by the Board. They have the specific skills and experience to enable them to fulfil their roles and report progress on this at the quarterly Board meetings and through financial reports to the trustees.

In addition, the Executive Management Team meet formally every month to review all activity and adherence to the overall business plan. The output of these meetings and discussion points are disseminated throughout the business at regular management meetings. There is a flow of communication throughout the organisation which is cross functional and cross site with local issues managed at local management team meetings. Issues can be escalated to the Executive Management Team and, where relevant, to the trustees. In addition, there are regular functional specific meetings with reviews of critical activity. This, together with additional weekly operational meetings, ensures that there is a robust management of the day to day running of the hospices.

REMUNERATION POLICY

The remuneration of key management personnel is reviewed on an annual basis by the Remuneration Committee, as part of its review of salary levels across the organisation. This review ensures the remuneration is competitive within the charity and healthcare sector. The Committee considers a range of factors including increases in the national cost of living and the position of comparable organisations and wider healthcare and charity sector, as well as the current financial position of Pilgrims Hospices and the affordability of any increase. Every three years Pilgrims Hospices undertakes a full review of the duties, responsibilities, level of expertise and salaries of all posts across the organisation. This information is compared with the lower quartile to median salaries of comparable posts for organisations with a similar overall income in the Third sector.

RESPONSIBILITIES OF THE TRUSTEES

The trustees (who are also directors of Pilgrims Hospices in East Kent for the purposes of company law) are responsible for preparing the trustees’ Annual Report (including the Strategic Report) and the group financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and the group and of the incoming resources and application of resources, including the net income or expenditure of the group for the year. In preparing those financial statements, the trustees are required to:

The trustees are responsible for keeping adequate accounting records which disclose with reasonable

Page 4

PILGRIMS HOSPICES IN EAST KENT (A Company Limited by Guarantee)

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 March 2021

accuracy at any time the financial position of the charity and the group and which enable them to ensure that the financial statements comply with the Companies Act 2006.

RELATED PARTIES AND RELATIONSHIPS WITH OTHER ORGANISATIONS

None of the trustees receive remuneration or other benefit from their work with the charity. Trustees are able to claim any reasonable out-of-pocket expenses, incurred in the course of conducting the charity’s business.

Trustees and senior managers are required to declare any interests that they may have outside of the charity. Transactions and contractual relationships with related parties must be disclosed.

Pilgrims Hospices in East Kent has three wholly owned subsidiaries. All are registered in England, are limited by share capital and have as their registered office 56 London Road, Canterbury, Kent CT2 8JA. Two of the subsidiaries are now dormant and the third operates as a trading company, transferring its taxable profits to Pilgrims Hospices in East Kent.

Hospice Shops Limited (No. 1623758, director K Warden) is now a dormant company.

Pilgrims Hospice Lottery Limited (No. 3130167, director K Warden) is now a dormant company.

Pilgrims Hospices Trading Limited (No. 07993259, director K Warden) handles the taxable trading activities of the charity, other than the running of the charity shops, and, along with the charity, is registered for VAT under a group registration scheme.

The charity is registered with a number of regulatory bodies, including the Charity Commission, Care Quality Commission, Fundraising Regulator, Gambling Commission and Information Commissioner’s Office.

The charity is a member of Hospice UK, an umbrella body which supports hospices throughout the UK.

STRATEGIC REPORT

PUBLIC BENEFIT STATEMENT

The trustees confirm that they have complied with the duty in Section 4 of the Charities Act 2011 to have due regard to the Charity Commission’s general guidance on public benefit. The charitable purpose of Pilgrims Hospices in East Kent is stated below in ‘Objects and Activities’ and the trustees ensure that this purpose is carried out for the public benefit.

OBJECTS AND ACTIVITIES

“Our vision is of a community where people with a terminal illness and their family and friends are supported and empowered to live well in mind and body until the very last moment of their life”.

East Kent has a population of 750,000 and each year approximately 7,500 adults will die. This can be due to a sudden incident, such as a heart attack or an accident, or it can be the outcome of a long term illness. Pilgrims is a charity that offers specialist support for people living with a terminal diagnosis or a life limiting condition. The support we offer is very varied as it is tailored to meet the needs of families who face challenges at the end of life that cannot be met by other local agencies. We have over 36 years of expertise, research and insight to offer; our aim is that people who are dying can live well for as long as is possible and experience a good death.

The majority of our care is delivered in the community, either in the patient’s own home or the residence in which they live, such as a nursing home or residential care facility. If it is not possible to care for the family in their own environment we offer full inpatient support in one of our three facilities. Pilgrims is the only adult hospice in the UK that has three separate inpatient units working together as one organisation. Our patient facilities are based in Ashford, Canterbury and Thanet and we have outreach clinics in Deal, Dover,

Page 5

PILGRIMS HOSPICES IN EAST KENT

(A Company Limited by Guarantee)

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 March 2021

Faversham, Folkestone and Whitstable.

Our Mission:

Our Values

We will live our values through the application of our C.O.D.E in all we do:

C - Compassionate

O - Open

We will be compassionate but open in all of our interactions so people feel supported and well informed. We will strive to be dynamic – looking for innovative ways to resolve problems and respond to need in a timely and efficient way.

We will seek to empower people through education and insight and support their choices. Background:

In 2015 we published a five-year “2020 Vision” strategy, which was built on four key pillars and we are on course to achieve our aims.

During 2020, Pilgrims developed an updated Five-Year Strategy for the period 2021-2026. This strategy included updated strategic pillars, incorporating the Hospice UK Nine Principles of Sustainability, and sets ambitious but achievable goals to develop the organisation, our services and our patient offering by 2026. The updated strategy also builds on learning from the response to COVID-19, and the work taking place in the wider healthcare sector.

The updated strategy was agreed at the March 2021 Board meeting, and a key activity for 2021-22 will be engaging with our partners and key stakeholders to share our vision and strategic priorities.

On average we have 2,500 referrals a year and around 65% of these referrals come from the Oncology teams based in our local hospitals. This gives us a bias for patients who have cancer as their primary diagnosis. A particular challenge that we are seeking to address in the future is that the majority of our patients are referred to us when they are in the last ten to twelve weeks of life. This is just too short a time to afford the family the full benefit of our services, so we are working to change this profile.

To ensure access to our services is equitable, we go out into the local healthcare environment every day. Our clinical and medical teams attend ward rounds every week in each of the east Kent hospitals – William Harvey Ashford, the Kent & Canterbury and the Queen Elizabeth the Queen Mother Hospital (QEQM) in

Page 6

PILGRIMS HOSPICES IN EAST KENT (A Company Limited by Guarantee)

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 March 2021

Thanet. They consult across all hospital specialities and if it is felt a patient may benefit from extra input and support we will either transfer the patient to our facilities or have input into their care plans. We are seen as valued colleagues by GPs and we are regularly invited to attend their patient evaluation sessions. We offer advanced training programs for all healthcare professionals who manage patients coming to the end of their life; as well as participating in clinical research on a local and national level.

During 2020-21, up to 72 patients were admitted to our inpatient facilities each month. This figure was lower than the previous year due to visiting restrictions put in place as a result of the COVID-19 Pandemic. Around 55% of these patients just need a specific intervention such as symptom management and once their issues are resolved, they return home. Others come to spend their last days in an environment that best suits their needs and supports their family. We operate very differently to an acute hospital and by aiming for a bed occupancy of 75%, we have more chance of a bed being available for our patients in the community in case their plans to die at home suddenly change.

Out in the community at any one time we can have up to 680 people needing various levels of support. The entire operation is very fluid as we adapt plans on a daily basis depending on the needs of patients and families who have been referred to us.

Pilgrims is completely independent and in an average year the majority of our funding 73% comes directly from the generous donations of the east Kent community. We have service funding agreements with the Kent and Medway CCG, covering east Kent which contribute approximately 20%, in a normal year, towards our total running costs across the three sites.

PRINCIPAL RISKS AND UNCERTAINTIES

The trustees regularly assess the risks and uncertainties that the charity is exposed to. The approach to risk is in accordance with a Risk Management Policy. A formal risk register is in place and the trustees have adopted a risk management strategy whereby those risks are identified, the level of risk is assessed and systems for ameliorating them are put in place and regularly reviewed. The Board reviews the risk register at their quarterly meetings.

The risk register is reviewed quarterly at a meeting of the Executive Management Team and each member thereof, in turn, is responsible for managing identified risks, identifying further risks and reporting these upwards to the trustees for review. Sub-committees of the Board of trustees, whose members comprise those with the skills and knowledge specific to the risks under review, report regularly to the Board as described above.

The main risks that Pilgrims faces may be its inability to deliver its mission statement, as well as operational risks arising from workforce, financial and health and safety issues. We have also identified a new risk in relation to the general economic uncertainty, with regards to the future funding of the NHS and the continuing impact of the COVID-19 pandemic during 2021-22 and our ability to re-establish income streams relating to our Retail and Fundraising activities.

Financial risk would include the loss of income arising from a loss of reputation and the trustees also recognise that the charity relies on two material amounts of funding arising from legacies and the NHS grant. Action is being taken to encourage the continued flow of legacies and a strong relationship is maintained with the NHS to secure the continuance of the grant, and a review by Commissioners of the appropriate level of funding apportioned to those providing end of life care in line with Commissioning Frameworks.

Workforce risks include the difficulties in being able to recruit and retain suitably qualified staff and this particular risk is also faced by many parts of the NHS. Currently we have a full complement of clinical and support staff. We do however continue to face challenges in recruiting Consultant grade doctors and specialist registered nurses – this is a national problem amongst hospices providing end of life care due to the scarcity of doctors at this level in this area of specialism and the scarcity of qualified nurses.

ACHIEVEMENTS AND PERFORMANCE

Page 7

PILGRIMS HOSPICES IN EAST KENT

(A Company Limited by Guarantee)

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 March 2021

Individual experience

In the last year we have cared for 3,760 patients, including the provision of support to families and carers. The majority of this care is given in their own homes with an emphasis on living well. Our team of professionals includes physiotherapists, specialist nurses, occupational therapists, doctors, social workers, counsellors and spiritual leads who all work together with our volunteers to alleviate symptoms and to help patients keep as much independence as possible, together with offering practical support for both the patient and their family.

Our Wellbeing and Social Therapy centres provide a range of programmes covering common problems and concerns our patients and their families face. The earlier involvement patients and their families have with our services, the longer and greater their benefit. Whilst this is the case for all hospice service providers, we are working closely with professionals and our communities to change this perception.

The three inpatient units provide care for those whose needs cannot be met at home. The average stay of patients in our in-patient unit is around 9 days.

Whilst our total number of referrals has remained steady with, on average, around a 5% increase or decrease year on year, we anticipate that the demand for our services will increase. This is due to a number of factors including the increasingly ageing population, which can result in patients having multiple conditions, leading to increasing complexity in the patient caseload. With the changing pattern of illness, our services will need to adjust, but the most crucial step to ensuring a patient receives the most appropriate care remains, is involving Pilgrims as soon as possible in the patient’s care plan.

As the patient’s condition and needs change so does our input. For some this may only be access to our 24 hour telephone line, which is available for patients, families or professionals. For others it may be a more intensive input involving regular contact with the whole team or even admission.

The feedback so far from patients and families that have attended has been excellent; our service has had an average overall approval rating of 94.9%. While this does represent a drop from the 96.5% reported in 2019-20, this year has been exceptionally challenging, with COVID-19 resulting in restrictions to visiting, and reduced interpersonal interaction as a result of stringent infection control measures. The organisation is therefore satisfied that 94.9% represents an exceptionally positive result given the circumstances, and we are confident that we continue to meet the needs of our patients.

Pilgrims has been using I Want Great Care ( IWGC) to collect service users feedback for many years and we have over 4,000 reviews online. We receive on-line reviews for many of our different teams, including our Hospice at Home team, Wellbeing teams, Physio and Occupational Therapy teams, as well as our inpatient ward reviews. These reviews provide us with a measure – in percentage terms – of the how our patients rated the service we provided to them. There is also a star rated measure, which provides a score out of 5 for the quality of service provided – 5 stars being the highest. Between January and June 2021, our service users gave us an average score of 4.81 out of 5 stars.

We ask our patients to provide feedback in their own time. This relinquishes any pressure and allows them the time to reflect on their care and provide us with an honest review. Our clinical teams have their own processes on how they request their reviews, some teams send a covering letter along with the IWGC form and some of our patients receive their form as part of an assessment pack which we give to our new patients at their first appointment. We provide details on how our service users can upload their review online themselves, we also provide a self-addressed envelope making the process as simple as possible. The anonymous reviews are returned to a central point at our Canterbury hospice and are then uploaded inhouse.

We provide monthly feedback reports to all of our individual teams for presentation at our Quality and Governance Committee meetings. These reports include all comments made, as well as scores given for areas such as ‘Were you treated with dignity and respect?’, ‘Were the staff kind and caring?’ and ‘Did you have confidence and trust in the staff looking after you?’. We are also set up to respond online to our

Page 8

PILGRIMS HOSPICES IN EAST KENT (A Company Limited by Guarantee)

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 March 2021

reviews, even though they are anonymous. This shows our dedication to our feedback and that we are committed to taking action on the comments received.

Working in partnership: Stakeholders

Our hospice service covers the whole of east Kent, however, within that geographical area NHS services have changed significantly over this year, with the four commissioning groups coming to together to form one Kent and Medway group. There will be one Integrated Care System covering the same area and four Integrated Care Partnerships (ICPs) covering specific areas within Kent & Medway, with an East Kent ICP covering the geography in which Pilgrims operates. Each ICP is then divided into smaller primary care networks made up of groups of GP practices. These changes are still taking place, with the new system set to formally take over from existing CCGs in 2022. Pilgrims is currently working to identify and make contact with key stakeholders in each of these new bodies, and we will work closely with each of these groups to improve patient care and access to services for the people of East Kent.

Working closely with our NHS professional colleagues is key to delivering high quality patient care. We look to our colleagues to identify a patient in need early on and refer to us as required. We work alongside the patient’s primary healthcare provider but all patients remain under in the care of their respective GP at all times. We provide them with a 24/7 professional helpline to offer advice and guidance. We undertake home visits or outpatient consultations and arrange admission to the inpatient unit if needed.

We continue to provide extensive training for our NHS and care home colleagues; managing patients who are coming to the end of their life requires specialist knowledge and understanding. Our education and research activities ensure we are able to stay ahead of relevant developments in this area of care. We have worked with the Universities of Kent and Cambridge, University College London and Hull and York Medical School. We participate in national studies and publish work regularly.

Pilgrims offers a number of training opportunities both for qualified doctors trying to develop their skills and medical students planning to graduate as doctors. Most importantly this helps to develop doctors with the right skills to provide high-quality palliative care to the local community.

People Development

Pilgrims aims to be recognised as a preferred employer within east Kent – attracting, developing and retaining talent across our organisation and for our volunteer services to be recognised as best-in-class within the hospice sector.

We employ 359 people in a mix of full and part time roles, including our internal flexi-bank, totalling 276 full time equivalent (FTE) staff. We recognise that supporting staff to achieve a good work life balance is essential to maintaining a happy, healthy workforce. Staffing numbers have remained broadly constant throughout 2020-21, with a small reduction in employees and FTE, predominantly as a result of vacancies carried through COVID, rather than a significant reduction to the required headcount. We also now maintain a slightly smaller pool of flexi-bank (casual) workers as we continue to prioritise internal redeployment of staff to cover gaps in schedules, as opposed to the additional cost of flexi-bank shifts. Staffing headcount however has remained stable over the two years.

Pilgrims employs a diverse workforce, with staff performing more than 70 different roles across a range of functional areas within the organisation, including:

Nursing & Care : A mix of Registered Nurses and Healthcare Assistants support our inpatient units, while teams of Palliative Specialist Nurses support our community patients. Additionally, a team of specialist Advanced Nurse Practitioners provide input across our inpatient and community services and our Hospice at Home team provides personal care.

Medical : Consultants and Specialty grade physicians provide input for both our inpatients and community patients. We also have doctors training in general practice and to work in palliative medicine.

Allied Health Professionals (AHPs) : A wide range of AHP’s support our patients, across our inpatient

Page 9

PILGRIMS HOSPICES IN EAST KENT (A Company Limited by Guarantee)

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 March 2021

and community services, as well as providing programmes for our therapy centres. Our AHP teams include occupational and physiotherapists, spiritual care professionals, social workers, counsellors, complementary therapists and wellbeing practitioners.

Income Generation : In a normal year, Pilgrims has to raise around 76% of our operating costs from the community and therefore engages in a wide range of income generation activity. Our income generation teams include our community, corporate and events fundraisers, individual giving, trusts and grants, lottery, retail and marketing.

Hospice Services : Not all of our patient facing and front-line workers are clinical. Our Hospice services team includes catering and domestic teams, maintenance engineers and site managers, as well a patient-facing administration team working across our sites.

Head Office Support Functions : Our head office provides a number of essential support functions to the wider organisation, including HR & Payroll, Finance, Information Technology and Research. Our Education and Training Team also provide a range of training to both internal and external delegates.

We run a complex business with very vulnerable people at the centre of everything we do. By working as one team we are able to work across three sites, sharing skills knowledge and resources which makes us robust and cost efficient with on average around 78% of our income spent on patient care. Currently we are the only hospice in the UK that has this infrastructure and we are able to provide a service whereby more people in east Kent, proportionally, end their life in a hospice bed than anywhere else in England.

Our National Hospice UK Staff and Volunteer Survey Results 2020 showed we have continued to increase overall levels of positivity for both staff and volunteers. A record proportion of the workforce completed the survey in 2020, with the increase in volunteer responses made in 2019 being maintained despite the majority of volunteers having been stood down during the COVID-19 pandemic. One of the most pleasing results, further to the development of the new Induction & Core Training modules for volunteers in 2019, was the 19% increase in those feeling they get the training/development they need to perform their roles, up from 65% last year, to 84% in 2020.

Reported confidence in both the Executive Management Team and the Board of Trustees continues to remain high. Staff and volunteers continue to believe in the excellent care that is provided by the organisation. They understand the aim of the organisation, their part in it, and feel proud to be part of the delivery of our services. They hugely enjoy the work they do and the people they do it with. In each of these areas, the positive responses exceeded 90%. In the 2019 survey staff reported the highest levels of pay satisfaction in the past six years and this was further improved by 15% in the 2020 survey.

We are supported by over 1,600 volunteers who contribute their time, commitment and expertise right across the charity. We are committed to continuing to look for new and innovative ways in which volunteers can support Pilgrims, including micro and virtual volunteering. During the year, the opportunity was taken to review our Reception Volunteer role to ensure it meets the needs of patients and visitors, taking into account the impact of COVID-19 and the need to effectively manage footfall on the sites. Working in tandem, we have also developed a brand new Ward Support volunteer role which will work as part of the multi-disciplinary team in the Inpatient Units to provide a range of practical and wellbeing support to patients and visitors. The objective has also been to ensure that we provide fulfilling and meaningful volunteer roles which people will feel make a positive difference.

We can only provide the highest quality healthcare to patients and their families if we recruit and retain the highest calibre staff and if all these staff are treated with respect and feel valued. Pilgrims has developed our CODE (Compassionate, Open, Dynamic, Empowered) which is a shared set of values and behaviours which characterise all our dealings with each other, our patients and families. The response of our staff and volunteer to the COVID-19 pandemic, which saw Pilgrims step up to support a system-wide response to the pandemic, epitomised the values of our CODE.

We have policies and procedures supporting equality and diversity that help us to ensure rights and

Page 10

PILGRIMS HOSPICES IN EAST KENT (A Company Limited by Guarantee)

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 March 2021

responsibilities are applied equitably and we have processes that allow us to address problems fairly and sensitively when they arise. All our data is collected in line with Data Protection Regulations and our Board of Trustees is provided with an annual update in relation to the diversity of our workforce.

Our gender pay reports are published in line with the Equality Act 2010, and can be viewed on our website at: https://www.pilgrimshospices.org/about-us/work-with-us/.

Pilgrims is an equal opportunities employer and does not tolerate any form of discrimination, including on grounds of disability. We have robust processes in place to ensure individuals with disabilities are not subject to any disadvantage either during the recruitment process or during employment. Pilgrims seeks to support disabled employees with reasonable adjustments where practicable, and our Occupational Health service provides advice and support for employees with long-term conditions. Relevant internal policies include our Equality and Diversity Policy, and our Flexible Working Policy.

Engagement with staff and volunteers

Pilgrims seeks to engage with our entire workforce, including paid staff and volunteers, incorporating their feedback and suggestions into the development of the organisation. With three hospice sites, as well as 32 retail locations, ensuring all staff and volunteers are engaged and have the opportunity to be heard is a challenge to which Pilgrims devotes significant effort.

A number of mechanisms are in place to engage with staff and volunteers, including an annual Staff and Volunteer Survey operated by Birdsong Charity Consulting. This survey asks staff and volunteers about their views on a range of topics, provides a comparison with the wider hospice sector, and also provides an overview of how “engaged” respondents are compared to the national average. The results of this survey are summarised and shared with the Board and wider organisation.

Pilgrims has a Local Management Team (LMT) in place at each hospice, which considers Claims, Concerns and Issues for their site, and which are in turn escalated to the Senior and Executive Management Teams. LMTs are also the primary method of cascading information across the organisation. In addition, the HR department circulates a workforce newsletter “People Matter” six times each year to update staff and volunteers with good news stories and organisational updates. A regular volunteer newsletter is also produced several times per year, with updates from teams across the organisation.

The organisation has effective policies and procedures for raising and escalating concerns, including the Grievance and Whistleblowing policies.

The Board of Trustees is assured and updated regarding engagement activity via Board Reports prepared by the organisation’s Executive Management Team. Further Trustees are represented on various committees which oversee aspects of engagement activity, including:

The Board of Trustees also engage in “Board Walks”, which see them tour Pilgrims facilities, speak with staff, and provides accessibility and visibility for the workforce. This activity was however suspended during COVID-19 due to requirements to minimise footfall on sites.

Page 11

PILGRIMS HOSPICES IN EAST KENT (A Company Limited by Guarantee)

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 March 2021

During COVID-19 a number of additional steps were taken to engage with staff and volunteers, including allsite Claims, Concerns and Issues sessions run virtually, and regular all-users communications from the Chief Executive providing updates regarding the organisation’s ongoing response to the pandemic.

Operations

We continue to review all our physical facilities on a regular basis to ensure that they remain well maintained and meet all health and safety legislation.

We are required to monitor compliance against core patient safety key performance indicators (KPIs) set out by the Kent and Medway Clinical Commissioning Group (CCG), alongside evidencing the 5 Key Lines of Enquiry set out by the Care Quality Commission (CQC). Executive team members meet with the CCG and CQC on a quarterly basis to give assurance regarding this and as an organisation we continue to meet all of the patient safety KPIs, with no concerns raised in regard with our performance by the CQC. Minutes of the monthly Quality and Governance board are also submitted to these external agencies.

During 2020, current statutory and mandatory training requirements were reviewed, and the decision taken to more closely align Pilgrims with the NHS Core Skills Training Framework, which will now see the majority of training valid for a period of three years, significantly reducing the training burden on staff. As part of this change, all training materials were reviewed and updated to ensure they continue to provide a comprehensive overview of individuals’ roles and responsibilities.

Historically we have taken part in PLACE (patient led assessment of the care environment) to benchmark our facilities and services against other hospices – this is an assessment where patients and carers join an internal team to assess our environment in terms of building appearance and maintenance, cleanliness, food, privacy dignity and well-being, dementia and disability. Due to COVID-19, PLACE did not happen in 2020 but we are looking to take part again as soon as this option is available. Prior to COVID-19, we had taken part in PLACE for the previous 4 years and have continued to see a year on year improvement in our results.

We continue to strive for ways to improve our operational safety and efficiency. Prior to the COVID-19 pandemic, we were looking at a new and improved incident reporting system. This would also give us access to a number of other modules that would help us manage our resources more effectively. The incident reporting module has now been fully deployed and we are looking at the other modules that are available and prioritising the roll out of these in line with need and resource impact.

We also continue to focus on our buildings and improving the environment for our patients and their loved ones. Despite COVID-19, we have completed improvement projects across the sites, through the generosity of a number of Trusts. The key ones were on our Ashford site, where we have erected a pergola in our garden area, with additional seating for patients and their families to get the best use of the fantastic garden spaces.

As part of our wider Estates strategy we have completed a renovation of a cottage adjoining our Dymchurch Book shop. This has been converted from shop storage space into a residential property and is now occupied. Further conversions opportunities are planned to ensure that we maximise the contribution from our estate.

Streamlined Energy and Carbon Reporting.

Overview :

Pilgrims uses energy in the form of gas, electricity and fuel for vehicles. The figures reflect UK energy usage. Transport data is captured from two datasets; fuel cards which detail the quantity of fuel purchased in litres, and mileage claims in respect of employees using personal vehicles for business purposes.

2020-21 is the second year that we have collected this data and the below table provides a comparison to the 2019-20 data. This comparison shows a moderate drop in energy usage for 2020-21, however, this reduction

Page 12

PILGRIMS HOSPICES IN EAST KENT (A Company Limited by Guarantee)

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 March 2021

is not representative on an ongoing trend of reduced energy use. Rather, this reduction is largely attributable to the impact of COVID-19, which saw our shops closed, much of our collection and delivery activity curtailed, and a significant reduction in face-to-face community activity for large parts of the year.

While some opportunities do exist to reduce energy use and drive energy efficiency, these are limited. Specifically, the sites which would benefit most from investment in energy are sites where such investment is not commercially viable, including or shops which we occupy on short-term leases and where we are not responsible for the fabric of the building. We also anticipate that developments across the organisation may increase overall energy use from 2021-22 onwards, including an increase in community-based clinical activity, and continued expansion of our retail logistics division.

The organisation achieved Phase Two ESOS compliance in December 2019 and has taken significant steps towards reducing energy use. These include a programme to upgrade to LED lighting where feasible, the appointment of green champions across all sites, the installation of more energy efficient heating, and an ongoing effort to reduce unnecessary travel through the use of virtual technologies for meetings and even patient contacts. While progress on some activity was restricted by COVID-19, progress in areas such as remote working and virtual technologies have seen significant progress.

Additional measures are planned, including improved insulation, further training for staff and ensuring energy efficiency is a considered when procuring new devices.

Our energy usage in 2020-21 and comparison to 2019-20:

Measure 2019-20 2020-21 % Change
Gas Usage 363,169.59kgCO2e 309,268.15kgCO2e -15%
Gas use intensity 236.89kwh/m2/y
43.69kgCO2e/m2/y		 201.60kwh/m2/y
37.20kgCO2e/m2/y		 -15%
-15%
**Electricity usage: ** 236,997.89kgCO2e 174,212.13 kgCO2e -26%
Electricity use
intensity		 91.30kwh/m2/y
23.32kgCO2e/m2/y		 73.52kwh/m2/y
17.14kgCO2e/m2/y		 -26%
-26%
Travel Data 124,743.72kgCO2e 59445.07 kgCO2e -53%

Notes on Preparation :

GHG emissions have been calculated using the 2020 UK DEFRA condensed carbon conversion factors dataset and emissions are presented in CO2e (Carbon Dioxide Equivalent). For buildings, an energy intensity metric of kWh per m2 has been identified as the most appropriate measure, using data from annual energy bills. When calculating intensity ratios for gas, only premises with an installed gas supply were included when calculating the total square metres used.

The above reported figures do not include usage for premises where the organisation has service agreements and/or is not charged for energy usage as a tenant due to a lack of access to this data. For electricity, full year CO2e figures for each individual supply were not available. Pilgrims Hospices therefore used the 2020 average energy supplied in the UK according to the 2020 UK DEFRA condensed carbon conversion factors dataset.

We do not keep records regarding the size or type of fuel used in employees’ personal vehicles. CO2e has therefore been calculated for claimed mileage based on the 2020 UK DEFRA condensed carbon conversion factors dataset, using the “average” personal vehicle and “unknown” fuel types.

Business relationships with our suppliers

Having good business relationships helps to ensure the smooth running of the charity and we are committed to working to a fair working practice with our suppliers, whilst delivering best value for the beneficiaries of the charity. We regularly review the contracts with our key suppliers and their performance in delivering the

Page 13

PILGRIMS HOSPICES IN EAST KENT (A Company Limited by Guarantee)

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 March 2021

goods and services we have purchased. We agree payment terms with all our business partners and implement service level agreements where these are appropriate. Our Retail staff and volunteers are provided with training in customer service, handling complaints, and how to deal with difficult situations to assist them in providing the best service possible to our customers. We provide a refund on all goods returned within 14 days in the same condition as when sold, no matter what the reason for return. We recognise that sometimes things go wrong and Pilgrims has established a complaints policy for use by any individual about any aspects of the charity’s services or work (for example staff, volunteers, patients, carers or members of the public). The policy is governed by a process which ensures all complaints are reviewed and addressed appropriately.

Income generation and fundraising

The Charities (Protection and Social Investment) Act 2016 requires Pilgrims to provide extra information in its annual report about its fundraising activities. In particular, any agreements with professional fundraisers or commercial participators as well as providing information on compliance with voluntary fundraising regulations.

We do not use consultant fundraisers to solicit gifts from prospects and donors. All gifts are solicited by Pilgrims Hospices Fundraisers who follow guidelines stipulated by the Charity Commission and Fundraising Regulator. We are also mindful of the General Data Protection Regulations (GDPR) and have a Privacy Policy and a named Data Protection Officer. Pilgrims uses a Customer Relationship Management (CRM) system to record all donations to ensure appropriate levels of communication are maintained. Fundraising activities are monitored by a team of managers, the Director of Income Generation and Marketing, the Chief Executive Officer, The Income Generation Committee and the Board of Trustees.

We are committed to following the highest standards and to ensuring a quality supporter experience. We have detailed procedures in place that in many cases go beyond the minimum requirements for the sector and we regularly monitor ourselves against the external hospice environment.

Some of our fundraising activity is conducted on our behalf by carefully selected fundraising agencies. We occasionally work with agencies to telephone existing supporters to talk to them about their donation and, on some occasions, to ask for a further donation. We work very closely with our agencies to make sure they represent our work and our organisation to the highest standards.

Pilgrims runs its own lottery. The Lottery is fully licensed and regulated by the Gambling Commission, who as part of the licensing conditions inspect and review Pilgrims Hospices Lottery’s processes and policies to ensure compliance.

The Lottery Team work with an external agency who supply canvassers and are remunerated by the external agency, they are paid a fixed fee for each new member recruited. The canvassing activity, both face to face and over the telephone, is licenced. The canvassing agencies Pilgrims employs work within all required guidelines and codes of practice, (Gambling Commission LCCP, Fundraising Regulator, EU GDPR ISO 27001) and all other legal requirements relating to data protection, including relevant guidance from the Information Commissioners Office. They operate in line with the Protection and Social investments Act 2016. All canvassing agency staff are fully trained and agree and sign a Canvassers Charter. Each canvasser is met with and inducted by the Lottery team, this includes an overview of our services, expectations, requirements and codes of conduct. This meeting also facilitates the opportunity to ensure all relevant paperwork is signed and in place.

Pilgrims works within its local community to generate income and this includes working with volunteers who work closely with the Income Generation Team. Volunteers receive appropriate training regarding their roles, their responsibilities and are supervised by members of the Income Generation team. All staff and volunteers adhere to Pilgrims Hospices code of conduct with are detailed in Pilgrims Hospices CODE. We regularly meet with our volunteers both individually and in group settings to set priorities and manage their activities.

Pilgrims operates a risk register to manage risks around all of our functions, including Income Generation

Page 14

PILGRIMS HOSPICES IN EAST KENT

(A Company Limited by Guarantee)

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 March 2021

activities undertaken by the Fundraising, Lottery and Retail Teams. We have a comprehensive set of policies and procedures in place to ensure compliance with best practice and legislation. All comments and complaints are promptly responded to and investigated to ensure that lessons are learned for organisational improvement. In 2020-21 our Income Generation Team, comprising: Fundraising, Lottery, Retail and Marketing, received two complaints which were all acknowledged within 48 hours of receiving the complaint and resolved within the stated timescales as detailed in our Complaints Policy.

Pilgrims protects vulnerable people and other members of the public from unreasonable intrusion, in that it does not cold call, undertake street fundraising or undertake cold direct marketing campaigns. We do not undertake wealth screening and our CRM system allows us to monitor approaches and ensures no one experiences multiple approaches or solicitations which might place pressure on them to give money.

Our income generation activities from donations and campaigns have decreased significantly at £1,931,000 (2020: £2,673,000) representing a decrease of £742,000. This is due to the impact of COVID-19 which prevented us from being able to interact with our supporters in the normal way. The impact of COVID-19 had further a further detrimental effect on our Community Fundraising activities, which saw income drop from £1,147,000 to £579,000 a reduction of £568,000. This is largely due to the cancellation of our events during the year due to COVID-19 and these included our two flagship events, The Pilgrims Way Challenge and our Cycle Challenge which were budgeted to generate £200,000. Our Retail Shops have also seen a reduction of income from £3.4 million to £1.3 million and this is because following Government Guidance, our shops remained closed for much of the year. More detail about this is included in the separate section in the Trustees’ Report covering the impact of the pandemic on Pilgrims.

Legacies have performed better than expected at £1.7 million compared to £1.3 million in the previous year. This is due to the previous backlogs at Her Majesty’s Courts and Tribunal Service (HMCTS), as well as more recently at HMRC and these appear to be reducing. It still remains to be seen whether legacy income will recover to pre 2019-20 levels.

The Pilgrims lottery remains strong, with a turnover in excess of £1.1 million, producing a net profit of £727,000 an increase on the previous year of £103,000. This was because no new lottery member canvassing activity took place due to COVID-19 pandemic. As a result player numbers have decreased and currently stand at 19,000 compared to 22,000 active members the previous year. Taken together and despite the pandemic performance in the year indicated that underlying income generation remained robust and many of our supporters continued to donate despite the uncertain economic climate.

Trust income was not as strong as the previous year raising £68,000 compared to £230,000 and this was this was mainly as a result of not having a Trust Officer in post for the year and also in the previous year we received a significant gift of £90,000 from one Trust.

PILGRIMS RESPONSE TO THE CORONAVIRUS PANDEMIC

The outbreak of the COVID-19 pandemic in the UK in the spring of 2020 had a substantial impact on Pilgrims. The sections below outline the effect the pandemic had on the hospices, how the hospices responded to the effects of the pandemic and the plans we have developed to manage in the aftermath.

Governance

From early March 2020 onwards, the Executive Management Team (EMT) held regular conference calls with key staff across the three sites to discuss the unfolding pandemic and monitor COVID-19 related activity in the clinical and non-clinical teams, including staff sickness rates, in order to co-ordinate Pilgrims’ response to the changing circumstances. These were stepped up to daily Zoom meetings, as the restrictions on social distancing were increased and the situation with regard to clinical guidance accelerated. In order to maintain communication and engagement with the Board during a fluid and fast moving situation, weekly briefing meetings with trustees were held via Zoom, detailing the clinical picture, the EMT’s response to the unfolding situation from both a clinical and non-clinical perspective, as well as the financial picture. The underlying programme of quarterly Board and Board sub-committee meetings continued, again facilitated via Zoom/ MS Teams. This continued from late March through to late June, when it was clear that the response to the

Page 15

PILGRIMS HOSPICES IN EAST KENT

(A Company Limited by Guarantee)

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 March 2021

pandemic could be eased slightly and governance structures returned to normal reporting time frames, albeit still facilitated virtually. The executive team continued to meet three times a week to monitor the situation.

Generally it was considered that communication had been effective during the period and that the use of technology had been transformational, especially with regard to staff home working and virtual communication with the Board.

Pilgrims staff

As Pilgrims is a provider of healthcare services, our staff were automatically designated as key workers, however, early guidance was clear that individuals who were able to work from home should do so, and that organisations should take all reasonable steps to facilitate home working, reduce face-to-face contact and to cease non-essential operations. We acted swiftly to protect our staff, volunteers and patients, and by 1 April 2020 had put in place measures for more than 80 staff to work from home, as well as designating 52 staff (12% of the workforce) as furloughed workers at various stages throughout the pandemic. Volunteers were also stepped down from the inpatient sites and retail stores in line with Government guidance on nonessential store closures. Less than 5% of 2020 survey respondents did not feel Pilgrims had well managed the changes and challenges of the COVID-19 pandemic. As vaccinations became available, we proactively worked with local providers to ensure as many of our staff were vaccinated as a priority and by the end of March 77% of our patient facing staff had received at least their first dose.

Despite challenging conditions, we made no redundancies during the year. Where staff were unable to perform their usual roles due to COVID-19, these individuals were placed on furlough, or redeployed internally in order to support the organisation’s core activity.

Inpatients

The inpatient units across all three sites continued to work as normal and it was agreed early in the period that the inpatient units should accept COVID-19 cases, with preparations being made for this eventuality. At the beginning of the pandemic crisis, Pilgrims was immediately requested by the local CCG to open up an additional four beds at each site to support the expected demand on End of Life beds. The Community Nurses were retrained to support the inpatient setting as required as were the Physiotherapists, Occupational Therapists and Wellbeing Practitioners. Some of our recently retired nurses and our Flexi Nurses were asked if they would work additional shifts.

The nursing staff initially found the additional PPE challenging not only physically but psychologically with this hindering communication with patients.

Community Nursing

The Community Nursing team quickly moved to offer telephone or video consultations and attended home visits only when necessary.

Allied Healthcare Professionals

The Physiotherapy and Occupational Therapy Teams continued with their work on the inpatient unit. The teams moved to telephone and video consultations and provided one-to-one support for things such as breathlessness and fatigue management, services that used to be delivered in groups. The teams then utilised the Marketing Team to video the many therapy centre programmes enabling patients to view them.

Wellbeing Practitioners

Recognising the need early to reduce the footfall into our hospice sites and to protect our vulnerable day service patients, we took the decision to close the Pilgrims Therapy Centres. The Wellbeing Practitioners introduced wellbeing telephone service support to patients and families. 50% of the Wellbeing Practitioners were redeployed to the inpatient units to support the provision of the additional beds in support of the NHS.

Counselling

As the COVID-19 crisis began to unfold, many of our counsellors clients were already making the decision themselves not to come into the hospice for face to face counselling. With the implementation of social distancing measures, we recognised the importance of being able to provide ongoing counselling support,

Page 16

PILGRIMS HOSPICES IN EAST KENT

(A Company Limited by Guarantee)

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 March 2021

especially during these times. All counsellors, including volunteer counsellors and Stepping Stones bereavement support volunteers, moved to providing telephone counselling support to patients, carers and bereaved family members. Where necessary, the counsellors still saw patients on the Inpatient Unit.

Social Work Team

Our social work team also moved to home working to support patients and families with psychological and practical needs and continue to coordinate services to support discharges and ongoing care needs in the community.

Medical team

Two recently retired doctors came back to work and enabled the medical team to put in place the following:

Pharmacy team

Our specialist palliative care pharmacist worked closely with the hospital and community services to ensure we were up to date with the changes in medication legislation, that medication supplies were available and shortages were highlighted so we could adjust practice. Symptom control and medication advice was disseminated in the community and hospital. We developed alternative medications that could be used if our usual approaches were unavailable including an emergency box available if needed. The relevant documentation for this was also put in place.

Hospice Services

The Hospice Services team faced some real challenges in how they responded to the pandemic. It was vital to keep patients fed and the sites clean as well as making sure that key H&S activities and sites were well maintained.

There was creative use of volunteers to supplement the existing teams. The teams also had to adapt to new ways of working that were presented during the pandemic and they rose to the challenge to support the patients, their families and the clinical team.

Research team

We have continued to look at research relevant to palliative care. We contributed to the Kings College London CovPall Study Survey and shared a number of staff and family surveys as they have come through. Unfortunately our existing studies were put on hold during the pandemic but our research nurse was able to move into the acute hospital to help collect data for the international COVID-19 studies being conducted there.

The research team also undertook a literature survey to ensure we were supporting the emotional and psychological needs of our staff.

Stepping Stones Bereavement Service

Pilgrims has been offering volunteer led bereavement support groups to hospice and non-hospice families for the past year, but had to suspend these due to the COVID-19 crisis. However, we recognised that during the crisis, many more people would experience bereavement, whether that bereavement was as a direct result of COVID-19 or some other cause – or perhaps they were bereaved before the pandemic began and were still grieving, or had limited access to usual support networks, not able to celebrate a loved-one’s life due to restrictions around funerals. All these were further compounded by the constant stream of upsetting

Page 17

PILGRIMS HOSPICES IN EAST KENT (A Company Limited by Guarantee)

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 March 2021

and distressing news and increased worry and anxiety.

The Stepping Stones bereavement service moved to a telephone support service. It continues to be available to anyone in east Kent who is grieving – we offer a 30 minute bereavement support call at an agreed time and a further 30 minute follow up call if required.

Additional Support to NHS and Social Care

Four additional beds per site were put in place along with the necessary staffing and we set up a telephone advice line for Health and Social Care staff for discussing and completing Treatment Escalation Plans with patients in hospital and in the community. We produced and delivered a number of training courses to health and social care staff, including in the use of Treatment Escalation Plans and Verification of Expected Death. Pilgrims provided training and support to care homes across east Kent, including face to face PPE and Infection Control Training, hands on care and support as well as a bereavement and support package for care home staff.

Personal protective equipment (PPE)

The supply of PPE was challenging at the start of the pandemic but was swiftly resolved and has not been an issue since opening up a consistent and reliable pipeline of the key items of PPE that we needed This enabled us to keep people safe at all times.

Visitors

One of the toughest guidelines that we had to adhere to during the pandemic was to restrict visiting. We know how difficult this was for the loved ones of our patients not to be able to see them. We made sure that technology was available to continue face to face contact to happen virtually. We reviewed our approach regularly and took every opportunity we could to review our approach alongside national guidance, whilst also keeping people safe.

Looking after our People and Wellbeing During COVID-19

A key priority for Pilgrims during the COVID-19 pandemic was to support the wellbeing of our staff and volunteers and ensure safe working practices. We introduced a variety of health and wellbeing resources to support staff both in their personal life and whilst at work. Some of these included:

We will continue to develop our health and wellbeing offering for staff as part of our wider Health and Wellbeing Strategy.

Through the COVID-19 pandemic, it was identified that individuals from Black and Minority Ethnic (BAME) backgrounds were disproportionately impacted by the virus. While the reason for this disparity is not clearly understood at present, we put in place a number of additional measures to protect staff and volunteers identified as vulnerable due to their ethnicity. These measures have included amended duties where feasible, and additional PPE to provide a greater level of protection for patient-facing staff.

Head Office

Pilgrims has been able to sustain the majority of head office functions, including Finance, HR, ICT, and Marketing at or close to full capacity throughout the COVID-19 pandemic. The vast majority of head office workers have continued to work from home, with a skeleton staff working on-site in Plender House, our dedicated administration building. Our Education and Training function has had to pivot from providing faceto-face training to providing a programme or remote training to external healthcare providers. The Conference Centre had to close for the majority of the year.

Page 18

PILGRIMS HOSPICES IN EAST KENT

(A Company Limited by Guarantee)

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 March 2021

Volunteer engagement during COVID-19

In early April 2020 the difficult decision was made to suspend all of our volunteer roles at hospice sites and in our shops. Our volunteers are integral to Pilgrims, and it has therefore been a priority to ensure that we did all we reasonably could to maintain communications and engagement with them during the COVID-19 pandemic. From the outset, the volunteers have received the Chief Executive Officer’s (CEO’s) weekly and, once lockdown was starting to ease, bi-weekly workforce updates.

Weekly messages have also been sent to the volunteers by the Volunteer Services Manager, often accompanying the CEO’s message. They have also been sent links to appropriate health and wellbeing websites and made aware of the contact details of local and national agencies which could provide them with support if needed during the outbreak. All the line managers of volunteers have also been keeping in regular contact with their own teams of volunteers, particularly those known to live alone, just to have a chat and check-up on their welfare.

In order to maintain some semblance of normality, an adapted version of the Spring edition of the newsletter for volunteers was also produced and sent to volunteers in order to keep them up to date with some broader, non-COVID-19 related organisational topics. The volunteers have also been a core part of the “be a stay at home hero” and Matching Hearts campaigns, both of which many of the volunteers have enthusiastically supported. We also recognised the contribution of our volunteers and the difference they make during national Volunteers’ Week in early June, under the theme of “We Miss You” and emphasised how much we look forward to seeing them back, with postings on our website and on social media.

As we have started to develop our Restore Plans, we felt it was important to garner the opinions of our volunteers about returning to volunteering, including asking for their suggestions about mitigations we should consider which would help them to feel safe and secure in their volunteer roles. More than 400 volunteers responded to the survey and the data gathered will be used to shape and inform our return to volunteering plans. Feedback from our volunteers about the level of communication with them during the COVID-19 outbreak has been overwhelmingly positive.

Income generation during the pandemic

The immediate impact that COVID-19 had on Income Generation was that Pilgrims closed all of its shops on Tuesday 24 March 2020. We furloughed 41 of our 47 strong Retail Team. Six members of the team remained in post to run our eBay office, ensure that the Retail estate remained in good order and to undertake planned maintenance. As we have progressed through 2020 we have had to cancel our events.

We reopened 4 of its 32 shops and its two Warehouses on Monday 29 June 2020. Considerable work went into ensuring that our volunteers, staff and customers were able to work and shop in save environments. By 31 October 2020, 30 of our 31 shops were open; the exception was due to space restrictions within one shop. On Saturday the 31 October 2020 the Government announced a second lock down and our shops were closed on 5 November 2020 and once again all but six staff were furloughed. Our shops remained closed for the remainder of the financial year and only reopened in this financial year on Monday 12 April.

The Pilgrims Lottery has fared well during the pandemic and this is partly because the Lottery Team were not paying recruitment costs for new members. However, player numbers have started to drop off, because many of our committed players were elderly and some were facing financial hardship. We were also not able visit our cash players at home to collect their membership fees; wherever possible the team contacted members by phone to take payments. As a result of their excellent customer care that the team gave to the Lottery Members, they have been able to maintain their income.

Our Individual Giving team reacted quickly when the COVID-19 lockdown was announced at the end of March 2020; they launched our ‘Still here; still caring’ appeal, which raised significant funds for our organisation. In June we ran our annual Sunflowers Memories Appeal; launching the England’s first hospice remembrance film to compliment the appeal. It was our most successful Sunflower Memories appeal to date. The same approach was also taken for our December 2020 Trees of Love campaign and it has been encouraging to see how many supporters and volunteers positively engaged with us during the making of

Page 19

PILGRIMS HOSPICES IN EAST KENT

(A Company Limited by Guarantee)

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 March 2021

both films.

Our Community and Events Team have been severely affected by the COVID-19 lockdown. We closed our on-site hospice Community Fundraising Offices, furloughed our Community Fundraising Officers who comprise 44% of the team and cancelled our summer events. COVID-19 has also impacted on our supporters’ ability to run their own events on behalf of Pilgrims. One positive outcome is that the Events Team have been able to focus their activities on creating and launching digital fundraising events to generate income and also to keep our supporters engaged. During August, our Community Fundraising Officers returned to work, on a phased basis, in order to support their planned Christmas community and festive digital fundraising activities. When the second lock down was announced at the end of October, the Community Fundraising Managers were part furloughed and Community Fundraising Officers were fully furloughed until April 2021, when they returned to work on a phased basis.

In preparation for 2021, Community Fundraising & Events have undertaken a considerable amount of work to ensure that our key events are COVID-19-safe and subject to the Government restrictions and guidance, a full calendar of events is planned throughout 2021.

Financial Sustainability during the COVID-19 pandemic

The Board and the Executive Management Team moved swiftly to stabilise the charity’s cash position, by immediately applying for several of the Government’s financial support schemes, including the Coronavirus Job Retention Scheme, the Retail Grant Scheme and the business rates holiday. An emergency appeal was announced and was successful in securing £150,000 in donations. Other fundraising programmes were devised during the year using virtual platforms. Applications were made to certain trusts and foundations offering grants for hospices and other healthcare charities. Activities that were not essential in delivering patient care were curtailed where possible. The proposed capital project for the refurbishment of the Thanet hospice was postponed indefinitely to reduce expenditure and instead a much more modest programme of piecemeal refurbishments was initiated. The investment portfolio had suffered a substantial fall in value during February and March 2020, caused by increasing investor anxiety as the pandemic unfolded. Trustees were therefore determined that recourse to the investment portfolios to maintain cash flow should be delayed as long as possible so as not to lock in the losses. Fortunately the portfolios rebounded strongly as the year progressed, especially with the successful development of viable vaccines and the commencement of the vaccination programmes.

The Retail team devised an action plan for gradual shop opening over the summer of 2020, so that by 1 September 2020, all but one of the shops was open and COVID-19 secure. The shops had to close again when Kent entered Tier 4 restrictions in December and they remained closed for the rest of the financial year when the country went into the second lockdown. Up until that point, retail trading had been strong, despite the negative impact that COVID-19 had on foot fall in the high street and restrictions placed on premises by social distancing requirements.

The 2020-21 budget was reviewed and revised at several points during the year, to take account of the impact of COVID-19 and the ensuing lockdowns and Tier restrictions which were introduced to manage the spread of the virus. A monthly cash flow forecast was calculated on the back of the different budget scenarios and reviewed on a regular basis by the Finance Committee, following updates with actual cash movements over the months. Projections on the effect of the different scenarios on Pilgrims’ reserves were prepared for 2020-21 and 2021-22, which again were reviewed by the Finance Committee. The Finance team maintained a daily bank balance through the period to ensure working capital was maintained at an adequate level on a day-to-day basis.

Negotiations with the local CCG secured funding for the provision of additional beds across the three hospice sites, during the first three months of the new financial year, in order to support the local NHS hospitals manage the pressures caused by the pandemic during that period.

In response to the impact of the lockdown on the hospice sector’s ability to raise income, Hospice UK secured funding from NHS England, on behalf of the sector, in order that hospices could maintain their patient capacity so as to provide support to the NHS during the pandemic. The grant funding was initially for

Page 20

PILGRIMS HOSPICES IN EAST KENT (A Company Limited by Guarantee)

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 March 2021

three months from April to June, but further funding was secured from November 2020 for the remainder of the financial year. In order to secure the funding, we were required to report our daily capacity to NHSE and provide Hospice UK with a monthly financial return.

Overall the actions taken enabled Pilgrims to maintain a stable, positive cash position during the year. This provided assurance to the Board that Pilgrims had adequate liquid reserves to finance its activities for the year and into 2021-22. In the light of this, the trustees were confident in preparing the 2020-21 accounts on a going concern basis.

It was nonetheless clear to the Board and Executive Management team that the current funding model could not be relied upon to provide sustainable funding in the long term. The level of statutory income provided by the NHS did not represent an adequate contribution compared to the level of the service it received in exchange. It was also clear that we would need to develop additional services for which we could seek funding from the K&M CCG. To this end, a new clinical strategy was devised that would look to raise the level of statutory funding for the existing services provided by Pilgrims, as well as several new services that we would look to secure funding for from the K&M CCG. This strategy is outlined in the section on Plans for the Future below.

PLANS FOR FUTURE PERIODS

What next - Our future clinical strategy:

We constantly strive to ensure our services meet the needs of the local adult population facing the challenges of a life limiting illness. We are on track with our long term plan and in January 2020 updated our long term plan to take account of our aspirations to utilise our expert skills and experience in end of life care to work beyond the hospice walls and make our services more accessible to those that need them. We have taken a “societal change” approach to revising our business strategy that is based around four key areas of work “THINK, TALK, ACT, Be”.

We know that wanting to feel “safe” and “in control” is particularly important to people in their final year of life. They want to know what will happen to them and their loved ones and they want to be able to make plans so that whatever happens their wishes will be respected. However, these conversations are difficult to have and clear care plans are not put in place. We will support, train and facilitate workshops with GP’s and other healthcare professionals so that they can have the right conversations and engage the right support at the right time for their patients.

We will work with GP’s to identify patients proactively who may benefit from an opportunity to join us in a nonclinical setting and whereby we can signpost what help and services may be available to them and what they need to think about so that they can start planning.

Our TALK phase is our Therapy Centre activity which offers a wide range of services to people who may need access to therapy services such as breathlessness clinics, and physiotherapy services. Our ACT phase will deliver the hands-on intensive support that our patients will require in their last 10 to 12 weeks of life. Finally, our Be phase will ensure our well established Stepping Stones bereavement services will be accessible to those across east Kent. Our expert volunteers are critical to delivering this service to ensure it remains accessible and sustainable.

The COVID-19 pandemic has truly shone a light on the need for people to talk about death and dying, to have clear plans in place and to access care that can help people live well until the very last moment of their life. We have worked tirelessly over recent months sharing our expertise with our colleagues across health and social care and this experience has given traction to the implementation of our long term strategy. Our COVID-19 Restore, Recover and Rebuild plan takes account of our strategic aspirations and our recent experience to transform services so that as many people as possible achieve the care and death they would wish for at the end of their life.

Restore, Recover, Rebuild plan

In response to the significant impact of COVID-19, we have instituted our organisation Restore, Recover,

Page 21

PILGRIMS HOSPICES IN EAST KENT (A Company Limited by Guarantee)

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 March 2021

Rebuild plan, which provided a roadmap as we reviewed our operations and looked to restore our services, establishing our “New Normal” following COVID-19.

The Restore, Recover, Rebuild plan is categorised by functional sections. The entire Executive Management Team have input into the plan, identifying key functional milestones for their respective areas.

The plan was initially divided into four key stages:

Stage One:June – August 2020 Stage Two:September – December 2020 Stage Three:January – March 2021 Stage Four:April 2021 onwards

Upon the publication of the Government’s “Roadmap out of lockdown”, published in February 2021, Stage Four of the Restore Plan was split into several phases, aligned to the Government’s milestones for lifting various restrictions. These were:

Step One – 8[th] and 29[th] March 2021 Step Two – 12[th] April 2021 Step Three – 17[th] May 2021 Step Four – 21[st] June 2021

As at 1[st] April 2021 the full plan included 246 actions across four stages, of which 167 (68%) had been completed. The restore plan generated high levels of activity, particularly during periods where government guidance changed rapidly. At the height of the pandemic, the organisation was completing up to eight Restore Plan activities per week. The majority of outstanding actions are dependent on further lifting of restrictions and the subsequent restoration of activities.

While it is currently anticipated that the Government’s roadmap will remove the majority of restrictions from the general population, there is a possibility that specific restrictions relating to the operation of healthcare organisations will remain in place for an additional period of time.

Timescales remain flexible and are expected to develop over time as the national picture becomes clearer with the potential for additional phases to be developed.

Thanet Hospice Refurbishment

Prior to the pandemic, we were planning a large scale refurbishment of our Thanet hospice. This has now been temporarily put on hold but we have completed a “mini” refresh of the site in 2021 to improve the environment for patients, visitors, staff and volunteers.

We know that in the long term, the refurbishment work is still important as the building is nearly 30 years old and has the layout and features of a typical NHS facility. Since its opening, we have cared for thousands of patients and families who have had to face the challenges of a life limiting illness. The demand for our services is continuing to grow and the type of care we need to provide has continued to change, including the recent lessons that we are learning from the COVID-19 pandemic. There was a time when hospice care was something that came at the very end of life, ‘a safe place for the last days’. We now have families who come to us in the last year of life and we work with them to ensure they are empowered to live life as fully as possible, make many memories and have some control over how their last days will be. To do this effectively, we need a facility that helps and supports what we are aiming to achieve. We want to create a space that is homely, with lots of natural light to make it feel welcoming and comfortable.

We have developed our plans and ideas, but the full scope of the future refurbishment will depend on our ability to raise funds. As always, we will need the local community to support us in delivering this exciting and important project.

Page 22

PILGRIMS HOSPICES IN EAST KENT (A Company Limited by Guarantee)

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 March 2021

Canterbury New Build

As previously reported, Pilgrims has been offered land in Thanington by the Tory Family Foundation and Pentland Homes, on which property developers will build a new purpose-built hospice for Canterbury. We continue to work in partnership in developing the plans for this. We know that the building has been granted planning consent and we have been continuing to work with the developer and the architect for the project to develop the internal specification, taking into account some of the learning from the COVID-19 pandemic.

The expected timescale for the project is starting to be understood and we are currently working on a provisional occupation date of early 2025, but clearly this may change over the coming months and years, depending on the development plans.

FINANCIAL RESULTS

The Statement of Financial Activities for the year is set out on page 32 of the financial statements. A summary of the financial results and the work of the charity is set out below. Notes 25a to 25b, which support the Statement of Financial Activities, show how funds have been received and applied during the year.

During the year under review, the net movement in funds was a surplus of £2,297,000 after investment gains of £1,809,000 compared to a deficit of £1,710,000 after investment gains of £343,000 in the previous year.

Our income generation activities from donations and legacies raised £3,081,000 (2019-20: £2,857,000) representing an increase of £224,000 compared to 2019-20. This increase represented a significant achievement from the Pilgrims fundraising teams in the face of the considerable constraints placed on their activities by the COVID-19 pandemic. The national and Tier 4 lockdowns also caused a significant reduction in Retail income in the year, falling from £3.4 million to £1.3 million, which closed the shops for most of the year. Legacy income increased compared to 2019-20, but it was clear that administrative problems at Her Majesty’s Courts and Tribunal Service (HMCTS) had not been fully resolved and were still restricting the flow of probate referrals compared to the levels in 2018-19 and before. There still remained a substantial backlog in probate applications at HMCTS during much of the year. The situation was further compounded by delays across the probate approval process, caused by the COVID-19 pandemic. Fundraising income was badly impacted by the pandemic which severely disrupted the events programme, causing income to fall by £568,000 (50%) compared to 2019-20.

Our Retail operation, as mentioned above, (excluding the trading subsidiary) experienced very difficult trading conditions during the year, with the national lockdown and the Tier 4 restrictions causing the shops to be closed for nearly eight months in the year. The operation delivered a net loss of £104,000 on income of £1.3 million compared to a net profit of £1,1 million on income of £3.4 million the previous year. The loss was offset by £800,000 of income received from the Retail Grant Scheme funded by local authorities that was available for retail premises that had been forced to shut as a result of the national lockdowns and the Tier 4 restrictions.

The Lottery remained strong with a turnover in excess of £1.1 million and produced a net profit of £727,000, an increase of £103,000 on the previous year and a very good result during a very difficult year

Total grant income in the year amounted to £6.9 million (£2.7 million in 2019-20). The significant increase in income was a result of Pilgrims being able to draw on various support grants which the government and the NHS had opened to healthcare organisations in response to the COVID-19 pandemic. The largest grants were those provided by NHS England to the hospice sector, via Hospice UK, in order to maintain hospice capacity during the pandemic. These grants were in recognition of the substantial loss in income that hospices incurred as a result of the national lockdowns. We received just under £2 million in grants during the year from NHS England via Hospice UK. We also received Retail Grant Scheme grants of around £800,000 as a result of its shops being closed for most of the year, again as a result of the national and Tier 4 lockdowns. In additional to these grants. Pilgrims provided the NHS with additional beds during the first three months of the pandemic to help alleviate pressure in the local hospitals. £686,000 was received to

Page 23

PILGRIMS HOSPICES IN EAST KENT (A Company Limited by Guarantee)

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 March 2021

provide this additional cover. These additional grant payments played a substantial role in enabling Pilgrims to maintain its services during the pandemic. In most cases the grants ceased at the end of 2020-21 and going forward Pilgrims will have to fall back on its usual income streams in order to fund services.

In addition to the COVID-19 related grants noted above, the grant from the local NHS Clinical Commissioning Groups (CCGs) under a service funding agreement amounted to £2.9 million, approximately 22% of total running costs.

Set alongside is a chart showing how diverse our sources of income are, but also demonstrating that in 202021 grant income comprised the largest percentage, as a result of the additional sources of funding from the NHS and local authorities as described above.

Overall expenditure fell by 5.5%, from £14,039,000 to £13,274,000. The reduction was primarily as a result of savings made in Fundraising and Retail as much of the events programme was suspended during the pandemic, with the events that were held being via virtual platforms and the shops being closed for a significant portion of the year. The lottery also was able to make some significant savings as canvassing for new members had to be suspended during the pandemic. Savings were made in our operations, as donations of food during the early stages in the pandemic enabled us to keep costs down in that area. As a result of some of our workforce working from home, there were also savings made on our utility costs, as fewer staff were on site than normal.

Investment gains during the year raised the value of the portfolio by £985,000. This increase was primarily the result of a strong recovery in the value of the investment portfolio, after the initial impact of the COVID-19 pandemic. There were also some additional investment properties recognised in the year, arising from a change in the treatment of certain premises that were mixed use, consisting of a shop premises, part of which also included a rented flat.

Page 24

PILGRIMS HOSPICES IN EAST KENT (A Company Limited by Guarantee)

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 March 2021

Reserves Policy

The trustees review their policy each year. In conducting their review they take into consideration best practice and the guidance issued by the Charity Commissioners.

In considering the reserves position, the trustees review:

The charity has the following categories of reserves:

Designated Reserves

‘Fixed Assets in Use’, which holds the fixed assets used by Pilgrims to provide the facilities for the patients, their families and carers.

Restricted Reserves

These are reserves only available for expenditure in accordance with the donor’s directions.

Endowment Reserves

These represent capital sums which are donated under the restriction that they are invested and that only the income arising is available for expenditure in accordance with the donor’s directions.

Revaluation Reserves

These represent the accumulated gains in revaluation of investment properties.

Free Reserves

These are retained by the trustees to give assurance to those who use Pilgrims’ services and those who give of their time and money, that the trustees will be able to sustain their commitment to provide specialist palliative care services to patients and support to their families and carers. The reserves are set at a level to withstand any short-term setback, whether operational, in the investment markets, or in key sources of income such as legacies. Liquid free reserves at 31 March 2021 stood at £11,000,000 (2020: £9,354,000) which include £7,909,000 (2020: £6,930,000) invested in quoted investments but excludes £3,610,000 (2020: £2,580,000) in investment properties. The trustees have agreed that the total of free reserves, i.e. those that are not used in the day to day operation of the charity, must not be less than £6,000,000, sufficient to cover around five months operating expenditure, and in light of the uncertainties as a result of the pandemic, the trustees consider this to be satisfactory.

The trustees consider that, as the charity’s income is derived from many different sources, the current level of reserves, which are maintained to avoid the risk of having to reduce the services provided in any short term downturn, is appropriate and should allow the trustees and executive team to plan for significant capital expenditure with regard to all three inpatient units as necessary in order to maintain a high standard of patient care.

INVESTMENT POLICY AND PERFORMANCE

At the end of the year there was £3,066,000 (2020: £2,280,000) available in cash and a high level of debtors which are monitored. At current financial levels of expenditure, the charity requires just under £1,200,000 per month to cover running costs, including fundraising costs. However, when the need arises, the charity is able to liquidate medium term investments very quickly. The balance of the reserves is held in a portfolio comprising properties, government and other fixed interest securities and equities. The trustees recognise the need to spread the investment risk in managing the reserves. They also acknowledge that investments should look to take into account, where possible, social, environmental and ethical considerations. For this

Page 25

PILGRIMS HOSPICES IN EAST KENT (A Company Limited by Guarantee)

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 March 2021

reason the trustees have stipulated that there should be no direct investment in tobacco manufacture.

The investment properties comprise residential properties that the charity has inherited or acquired and which the trustees retain, having taken appropriate advice, as they provide potential for capital growth and income. The trustees are confident that, having taken advice, the carrying value of the properties at £3,610,000, a surplus of £2,191,000 over acquisition value, is an accurate reflection of their market value as at 31 March 2021. During the year, Pilgrims included five flats within the investment property value, that were in the same buildings as certain of its shops. Until this year, the flats were part of the fixed asset value of the relevant shop premises within which they were located.

The general investment policy for the investment portfolio, adopted by the trustees and managed by the investment advisers, Coutts & Co, is to grow the investments above inflation whilst receiving an income, in the context of achieving these objectives in a time horizon of 5 to 8 years and within a risk category of medium to medium high. The Coutts portfolio manager actively monitors portfolio volatility and discusses the risks with trustees at regular portfolio meetings.

Coutts report that in the 12 month period to 31 March 2021 the weighted net return on the portfolio was 16%, compared to a return of -4% for the 12 months to 31 March 2020. This result was 1.6% ahead of the portfolio benchmark and represented a substantial recovery in value across the year. In absolute terms, the portfolio increased in value by 14% over the year. This increase was primarily the result of the rebound in world markets that occurred in in the second quarter of the calendar year, following substantial falls in February and March 2020, which had been driven by investors’ concerns over the impact of the COVID-19. The rise in values continued during the year, as vaccines against COVID-19 were rolled out and immunisation programmes commenced across the globe.

The asset distribution of the investment portfolio as at 31 March 2021 is set out below:

Asset class distribution

Geographic distribution

Page 26

PILGRIMS HOSPICES IN EAST KENT (A Company Limited by Guarantee)

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 March 2021

STATEMENT OF DISCLOSURE TO THE AUDITORS

Each of the persons who are trustees at the time when this Trustees’ Report is approved has confirmed that:

Charity Website

The Trustees (directors) are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website (www.pilgrimshospices.org). Legislation in the United Kingdom governing the preparation and dissemination of the financial statements may differ from legislation in other jurisdictions.

This report, including the Strategic Report, was approved by the trustees, in their capacity as company directors on 29 September 2021 and signed on behalf of the company by:

………………………………………………… Karen Warden, Chair

Page 27

PILGRIMS HOSPICES IN EAST KENT (A Company Limited by Guarantee)

INDEPENDENT AUDITOR’S REPORT FOR THE YEAR ENDED 31 March 2021

Opinion

We have audited the financial statements of Pilgrims Hospices in East Kent (the ‘parent charitable company’) and its subsidiary (the ‘group’) for the year ended 31 March 2021 which comprise the consolidated statement of financial activities, the group and parent charitable company balance sheets, the consolidated statement of cash flows and the notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the group 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, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded 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 Pilgrims Hospices in East Kent's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other Information

The other information comprises the information included in the trustees’ annual report, including the strategic report, other than the group financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the group financial statements does not cover the other information, and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the group financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are

Page 28

PILGRIMS HOSPICES IN EAST KENT (A Company Limited by Guarantee)

INDEPENDENT AUDITOR’S REPORT FOR THE YEAR ENDED 31 March 2021

required to determine whether this gives rise to a material misstatement in the group 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.

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of 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 misstatements in the trustees’ annual report, including the strategic report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 and Charities Act 2011 requires us to report to you if, in our opinion:

Responsibilities of trustees

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

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

Auditor’s responsibilities for the audit of the financial statements

We have been appointed auditor under the Companies Act 2006 and section 151 of the Charites Act 2011 and report in accordance with those Acts.

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

Page 29

PILGRIMS HOSPICES IN EAST KENT (A Company Limited by Guarantee)

INDEPENDENT AUDITOR’S REPORT FOR THE YEAR ENDED 31 March 2021

financial statements.

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

Capability of the audit in detecting irregularities

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of noncompliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Page 30

PILGRIMS HOSPICES IN EAST KENT (A Company Limited by Guarantee)

INDEPENDENT AUDITOR’S REPORT FOR THE YEAR ENDED 31 March 2021

Use of our report

This report is made solely to the charitable company's members as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and section 144 of the Charities Act 2011 and regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Joanna Pittman (Senior statutory auditor) Date : 6 October 2021

for and on behalf of Sayer Vincent LLP, Statutory Auditor Invicta House, 108-114 Golden Lane, LONDON, EC1Y 0TL

Sayer Vincent LLP is eligible to act as auditor in terms of section 1212 of the Companies Act 2006

Page 31

Pilgrims Hospices in East Kent

Consolidated statement of financial activities (incorporating an income and expenditure account)

For the year ended 31 March 2021

Unrestricted
Note
£'000
Income from:
3
2,029
4
5,044
5
3,073
6
296
10,442
7a
2,875
7a
80
7a
7,091
10,046
1,809
9
2,205
-
2,205
Reconciliation of funds:
21,202
23,407
Investments
Total income
Expenditure on:
Donations and legacies
Charitable activities
Other trading activities
Fundraising income
Raising funds
Net income/(expenditure) for the year
Total expenditure
Net income/(expenditure) before net gains
on investments
Charitable activities
Fundraising costs
Investment management
Net gains on investments
396
Total funds brought forward
Total funds carried forward
Transfers between funds
Net movement in funds		 Unrestricted
Note
£'000
Income from:
3
2,029
4
5,044
5
3,073
6
296
10,442
7a
2,875
7a
80
7a
7,091
10,046
1,809
9
2,205
-
2,205
Reconciliation of funds:
21,202
23,407
Investments
Total income
Expenditure on:
Donations and legacies
Charitable activities
Other trading activities
Fundraising income
Raising funds
Net income/(expenditure) for the year
Total expenditure
Net income/(expenditure) before net gains
on investments
Charitable activities
Fundraising costs
Investment management
Net gains on investments
396
Total funds brought forward
Total funds carried forward
Transfers between funds
Net movement in funds		 Restricted
£'000
1,052
2,230
-
-		 Endowment
£'000
-
-
-
-		 2021
Total
£'000
3,081
7,274
3,073
296
13,724
2,875
80
10,281
13,236
1,809
2,297
-
2,297
21,531
23,828
488		 2020
Total
£'000
2,857
3,070
5,808
251
10,442 3,282 - 11,986
2,875
80
7,091		 -
-
3,190		 -
-
-		 3,710
73
10,256
10,046 3,190 - 14,039
1,809
396		 -
92		 -
-		 343
(2,053)
2,205
-		 92
-		 -
-		 (1,710)
-
2,205
21,202		 92
316		 -
13		 (1,710)
23,241
23,407 408 13 21,531

Approved by the trustees on 29 September 2021 and signed on their behalf by

32

Pilgrims Hospices in East Kent

Company no. 2000560

Balance sheets

As at 31 March 2021

2021
2020
Note
£'000
£'000
Fixed assets:
14
8,789
9,268
15
3,610
2,580
12,399
11,848
16
7,928
6,943
20,327
18,791
Current assets:
19
13
14
20
1,277
1,480
3,066
2,280
4,356
3,774
Liabilities:
21
(855)
(1,034)
3,501
2,740
23,828
21,531
24a
13
13
408
316
421
329
8,789
9,268
2,192
1,413
12,426
10,521
Total unrestricted funds
23,407
21,202
23,828
21,531
Investments
Cash at bank and in hand
The group
Total tangible assets
Tangible assets
Funds:
Restricted income funds
Unrestricted income funds:
Designated funds
Revaluation reserve
General funds
Total funds
Investment properties
Endowment funds
Stock
Debtors
Creditors: amounts falling due within one year
Net current assets
Total net assets
Total endowment and restricted funds		 2021
2020
Note
£'000
£'000
Fixed assets:
14
8,789
9,268
15
3,610
2,580
12,399
11,848
16
7,928
6,943
20,327
18,791
Current assets:
19
13
14
20
1,277
1,480
3,066
2,280
4,356
3,774
Liabilities:
21
(855)
(1,034)
3,501
2,740
23,828
21,531
24a
13
13
408
316
421
329
8,789
9,268
2,192
1,413
12,426
10,521
Total unrestricted funds
23,407
21,202
23,828
21,531
Investments
Cash at bank and in hand
The group
Total tangible assets
Tangible assets
Funds:
Restricted income funds
Unrestricted income funds:
Designated funds
Revaluation reserve
General funds
Total funds
Investment properties
Endowment funds
Stock
Debtors
Creditors: amounts falling due within one year
Net current assets
Total net assets
Total endowment and restricted funds		 2021
2020
Note
£'000
£'000
Fixed assets:
14
8,789
9,268
15
3,610
2,580
12,399
11,848
16
7,928
6,943
20,327
18,791
Current assets:
19
13
14
20
1,277
1,480
3,066
2,280
4,356
3,774
Liabilities:
21
(855)
(1,034)
3,501
2,740
23,828
21,531
24a
13
13
408
316
421
329
8,789
9,268
2,192
1,413
12,426
10,521
Total unrestricted funds
23,407
21,202
23,828
21,531
Investments
Cash at bank and in hand
The group
Total tangible assets
Tangible assets
Funds:
Restricted income funds
Unrestricted income funds:
Designated funds
Revaluation reserve
General funds
Total funds
Investment properties
Endowment funds
Stock
Debtors
Creditors: amounts falling due within one year
Net current assets
Total net assets
Total endowment and restricted funds		 2021
2020
£'000
£'000
8,789
9,268
3,610
2,580
12,399
11,848
7,928
6,943
20,327
18,791
-
6
1,327
1,543
3,023
2,206
4,350
3,755
(849)
(1,015)
3,501
2,740
23,828
21,531
13
13
408
316
421
329
8,789
9,268
2,192
1,413
12,426
10,521
23,407
21,202
23,828
21,531
The charity		 2021
2020
£'000
£'000
8,789
9,268
3,610
2,580
12,399
11,848
7,928
6,943
20,327
18,791
-
6
1,327
1,543
3,023
2,206
4,350
3,755
(849)
(1,015)
3,501
2,740
23,828
21,531
13
13
408
316
421
329
8,789
9,268
2,192
1,413
12,426
10,521
23,407
21,202
23,828
21,531
The charity
12,399
7,928		 11,848
6,943		 12,399
7,928		 11,848
6,943
20,327
13
1,277
3,066		 18,791
14
1,480
2,280		 20,327
-
1,327
3,023		 18,791
6
1,543
2,206
4,356
(855)		 3,774
(1,034)		 4,350
(849)		 3,755
(1,015)
3,501 2,740 3,501 2,740
23,828 21,531 23,828 21,531
13
408		 13
316		 13
408		 13
316
421
8,789
2,192
12,426		 329
9,268
1,413
10,521		 421
8,789
2,192
12,426		 329
9,268
1,413
10,521
23,407 21,202 23,407 21,202
23,828 21,531 23,828 21,531

Approved by the trustees on 29 September 2021 and signed on their behalf by

Karden Warden Chair

33

Pilgrims Hospices in East Kent

Consolidated statement of cash flows

For the year ended 31 March 2021

Note
£'000
£'000
Net (expenditure) for the reporting period
2,297
(as per the statement of financial activities)
Depreciation charges
318
(Gains) on investments
(1,809)
Dividends, interest and rent from investments
(296)
Loss on the disposal of fixed assets
(13)
Decrease in stocks
1
Decrease in debtors
203
Increase/(decrease) in creditors
(179)
Net cash provided by/(used on) operating activities
522
296
(76)
5,811
-
(5,767)
264
786
2,280
a
3,066
Analysis of cash and cash equivalents and of net debt
At 1 April
2020
Cash flows
£
£
Cash at bank and in hand
2,280
786
a
Total cash and cash equivalents
2,280
786
Cash and cash equivalents at the beginning of the
year
Cash and cash equivalents at the end of the year
Change in cash and cash equivalents in the year
2021
Cash flows from operating activities
Net cash provided by investing activities
Cash flows from investing activities:
Dividends, interest and rents from investments
Purchase of fixed assets
Proceeds from sale of investments
Purchase of investments
Proceeds from sale of investment property		 Note
£'000
£'000
Net (expenditure) for the reporting period
2,297
(as per the statement of financial activities)
Depreciation charges
318
(Gains) on investments
(1,809)
Dividends, interest and rent from investments
(296)
Loss on the disposal of fixed assets
(13)
Decrease in stocks
1
Decrease in debtors
203
Increase/(decrease) in creditors
(179)
Net cash provided by/(used on) operating activities
522
296
(76)
5,811
-
(5,767)
264
786
2,280
a
3,066
Analysis of cash and cash equivalents and of net debt
At 1 April
2020
Cash flows
£
£
Cash at bank and in hand
2,280
786
a
Total cash and cash equivalents
2,280
786
Cash and cash equivalents at the beginning of the
year
Cash and cash equivalents at the end of the year
Change in cash and cash equivalents in the year
2021
Cash flows from operating activities
Net cash provided by investing activities
Cash flows from investing activities:
Dividends, interest and rents from investments
Purchase of fixed assets
Proceeds from sale of investments
Purchase of investments
Proceeds from sale of investment property		 Note
£'000
£'000
Net (expenditure) for the reporting period
2,297
(as per the statement of financial activities)
Depreciation charges
318
(Gains) on investments
(1,809)
Dividends, interest and rent from investments
(296)
Loss on the disposal of fixed assets
(13)
Decrease in stocks
1
Decrease in debtors
203
Increase/(decrease) in creditors
(179)
Net cash provided by/(used on) operating activities
522
296
(76)
5,811
-
(5,767)
264
786
2,280
a
3,066
Analysis of cash and cash equivalents and of net debt
At 1 April
2020
Cash flows
£
£
Cash at bank and in hand
2,280
786
a
Total cash and cash equivalents
2,280
786
Cash and cash equivalents at the beginning of the
year
Cash and cash equivalents at the end of the year
Change in cash and cash equivalents in the year
2021
Cash flows from operating activities
Net cash provided by investing activities
Cash flows from investing activities:
Dividends, interest and rents from investments
Purchase of fixed assets
Proceeds from sale of investments
Purchase of investments
Proceeds from sale of investment property		 £'000
£'000
(1,710)
307
(343)
(251)
-
12
1,425
(565)
(1,125)
251
(286)
4,990
65
(4,975)
45
(1,080)
3,360
2,280
Other non-
cash
changes
At 31 March
2021
£
£
-
3,066
-
3,066
2020		 £'000
£'000
(1,710)
307
(343)
(251)
-
12
1,425
(565)
(1,125)
251
(286)
4,990
65
(4,975)
45
(1,080)
3,360
2,280
Other non-
cash
changes
At 31 March
2021
£
£
-
3,066
-
3,066
2020
522
264		 (1,125)
45
At 1 April
2020
£
2,280		 Other non-
cash
changes
£
-
786
2,280		 (1,080)
3,360
3,066 2,280
Cash flows
£
786		 At 31 March
2021
£
3,066
2,280 786 - 3,066

34

Pilgrims Hospices in East Kent

Notes to the financial statements

For the year ended 31 March 2021

1 Accounting policies

a) Statutory information

Pilgrims Hospices in East Kent is a charitable company limited by guarantee and is incorporated in England.

The registered office address is 56 London Road, Canterbury, Kent CT2 8JA.

b) Basis of preparation

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

These financial statements consolidate the results of the charity and its wholly-owned subsidiary Pilgrims Hospices Trading Limited on a line by line basis. Transactions and balances between the charity and its subsidiary have been eliminated from the consolidated financial statements. Balances between the two entities are disclosed in the notes of the charity's balance sheet. A separate statement of financial activities, or income and expenditure account, for the charity itself is not presented because the charity has taken advantage of the exemptions afforded by section 408 of the Companies Act 2006.

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

The financial statements are presented in sterling which is the functional currency of the Charity, and are rounded to the nearest thousand.

In applying the financial reporting framework, the trustees have made a number of subjective judgements, for example in respect of significant accounting estimates. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The nature of the estimation means the actual outcomes could differ from those estimates. Any significant estimates and judgements affecting these financial statements are detailed within the relevant accounting policy below.

c) Public benefit entity

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

d) Going concern

The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern.

Free reserves stand at nine months of ongoing expenditure. The cash flow forecast and current budget projections indicate that Pilgrims has sufficient funds to finance itself during the next 12 months, from the date of signature of the accounts.

The trustees do not consider that there are any sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next reporting period.

e) Income

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

Income from government and other grants, whether ‘capital’ grants or ‘revenue’ grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.

35

Pilgrims Hospices in East Kent

Notes to the financial statements

For the year ended 31 March 2021

1 Accounting policies (continued)

Legacies are reviewed on a case-by-case basis. Where possible, legacies are credited to the accounts in the year of death where the Trustees are satisfied they are entitled to the money, there is certainty they will receive it and they are able to quantify their entitlement. Entitlement is the earlier of the Charity being notified of an impending distribution or the legacy being received. Accordingly, all legacies are accounted for when probate is granted at the best estimate of the entitlement less an estimate of the costs and having made allowance for a variation between the probate value and the final proceeds realised, excluding those that are subject to the interest of a life tenant.

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

f) Donations of gifts, services and facilities

Donated professional services and donated facilities are recognised as income when the charity has control over the item or received the service, any conditions associated with the donation have been met, the receipt of economic benefit from the use by the charity of the item is probable and that economic benefit can be measured reliably. In accordance with the Charities SORP (FRS 102), volunteer time is not recognised. However, the trustees’ annual report provides information about Pilgrims' volunteers and the contribution that they make to the charity.

On receipt, donated gifts, professional services and donated facilities are recognised on the basis of the value of the gift to the charity which is the amount the charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.

g) Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank.

h) Fund accounting

Restricted funds are to be used for specific purposes as laid down by the donor, or where donations are received in response to fundraising by the Charity for particular purposes. Expenditure which meets these criteria is charged to the fund.

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

Designated funds are unrestricted funds earmarked by the trustees for particular purposes.

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

i) Expenditure and irrecoverable VAT

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:

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

36

Pilgrims Hospices in East Kent

Notes to the financial statements

For the year ended 31 March 2021

1 Accounting policies (continued)

j) Allocation of support costs

Resources expended are allocated to the particular activity where the cost relates directly to that activity.

Support costs are the cost of overall direction and administration of each activity, comprising the salary and overhead costs of the central function.

Fundraising support costs are the support costs directly attributed to the Lottery and Retail departments of the charity.

Governance costs are the costs associated with the governance arrangements of the charity. These costs are associated with constitutional and statutory requirements and include any costs associated with the strategic management of the charity’s activities.

Support and governance costs are re-allocated to each of the activities according to the proportion of total direct costs attributable to each of those activities.

Support Governance
� In-patient 69% 81%
� Community services 11% 13%
� Counselling 4% 4%
� Information and education 1% 2%
� Governance 15% -

AppOperating leases

Rental charges are charged on a straight line basis over the term of the lease.

l) Tangible fixed assets

Items of equipment are capitalised at cost, including any incidental expenses of aquisition, where the purchase price exceeds £2,500. Depreciation costs are allocated to activities on the basis of the use of the related assets in those activities.

Assets are reviewed for impairment if circumstances indicate their carrying value may exceed their net realisable value and value in use. Any shortfalls are recognised as impairment losses in the Statement of Financial Activities.

Major components are treated as a separate asset where they have significantly different patterns of consumption of economic benefits and are depreciated separately over its useful life.

Where fixed assets have been revalued, any excess between the revalued amount and the historic cost of the asset will be shown as a revaluation reserve in the balance sheet.

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

� Freehold land and buildings 50 years
� Long leasehold land and buildings 50 years
� Motor vehicles 4 years
� Fixtures and fittings 4-5 years
� Equipment 5-10 years

m) Investment properties

Investment properties are measured initially at cost and subsequently included in the balance sheet at fair value. Investment properties are not depreciated. Fair value is determined annually by the Trustees based on advice received. Any change in fair value is recognised in 'net gains/(losses) on investments' in the statement of financial activities. The valuation method used to determine fair value will be stated in the notes to the accounts.

37

Pilgrims Hospices in East Kent

Notes to the financial statements

For the year ended 31 March 2021

1 Accounting policies (continued)

n) Listed investments

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

o) Investments in subsidiaries

Investments in subsidiaries are at cost.

p) Stocks

Stocks consist of purchased goods for resale and are stated at the lower of cost and net realisable value. In general, cost is determined on a first in first out basis and includes transport and handling costs. Net realisable value is the price at which stocks can be sold in the normal course of business after allowing for the costs of realisation. Provision is made where necessary for obsolete, slow moving and defective stocks. Donated items of stock, held for distribution or resale, are recognised at fair value which is the amount the charity would have been willing to pay for the items on the open market.

q) Debtors

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

s) Cash at bank and in hand

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

t) Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

u) Financial instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

v) Pensions

The Group operates a defined contribution pension scheme open to all employees. However, certain employees are already members of professional pension schemes to which Pilgrims Hospices in East Kent continues to make contributions as their employer. The pension costs charged in the financial statements represent the contributions payable by the Group during the year.

Baptist Pension Scheme

The Charity also participates in the Baptist Pension Scheme (the Plan). The Plan is funded and is not contracted out of the state scheme. It is a multi-employer pension plan and it is not possible, in the normal course of events, to identify, on a reasonable and consistent basis, the share of underlying assets and liabilities belonging to individual participating employers. Accordingly, due to the nature of the Plan, the accounting charge for the period under review represents the employer contribution payable. While the Plan is primarily a defined contribution scheme it has inherent guarantees that mean the Group may need to make further contributions to meet deficits.

38

Pilgrims Hospices in East Kent

Notes to the financial statements

For the year ended 31 March 2021

1 Accounting policies (continued)

Following a change in legislation in September 2005 there is a potential debt on the employer that could be levied by the Trustee of the Plan. The debt is due in the event of the employer ceasing to participate in the Plan or the Plan winding up. The debt for the Plan as a whole is calculated by comparing the liabilities for the Plan (calculated on a buyout basis i.e. the cost of securing benefits by purchasing annuity policies from an insurer, plus an allowance for expenses) with the assets of the Plan. If the liabilities exceed assets there is a buy-out debt. Further details including the current buy-out debt amount are given in Note 27 as a liability.

NHS Pension

Staff transferring from the NHS may continue to contribute to the NHS scheme.

Past and present employees are covered by the provisions of the two NHS Pension Schemes. Details of the benefits payable and rules of the Schemes can be found on the NHS Pensions website at www.nhsbsa.nhs.uk/pensions. Both are unfunded defined benefit schemes that cover NHS employers, GP practices and other bodies, allowed under the direction of the Secretary of State for Health and Social Care in England and Wales. They are not designed to be run in a way that would enable NHS bodies to identify their share of the underlying scheme assets and liabilities. Therefore, each scheme is accounted for as if it were a defined contribution scheme: the cost to the NHS body of participating in each scheme is taken as equal to the contributions payable to that scheme for the accounting period.

In order that the defined benefit obligations recognised in the financial statements do not differ materially from those that would be determined at the reporting date by a formal actuarial valuation, the FReM requires that “the period between formal valuations shall be four years, with approximate assessments in intervening years”. An outline of these follows:

i) Accounting valuation

A valuation of scheme liability is carried out annually by the scheme actuary (currently the Government Actuary’s Department) as at the end of the reporting period. This utilises an actuarial assessment for the previous accounting period in conjunction with updated membership and financial data for the current reporting period, and is accepted as providing suitably robust figures for financial reporting purposes. The valuation of the scheme liability as at 31 March 2020, is based on valuation data as at 31 March 2019, updated to 31 March 2020 with summary global member and accounting data. In undertaking this actuarial assessment, the methodology prescribed in IAS 19, relevant FReM interpretations, and the discount rate prescribed by HM Treasury have also been used.

The latest assessment of the liabilities of the scheme is contained in the report of the scheme actuary, which forms part of the annual NHS Pension Scheme Accounts. These accounts can be viewed on the NHS Pensions website and are published annually. Copies can also be obtained from The Stationery Office.

ii) Full actuarial (funding) valuation

The purpose of this valuation is to assess the level of liability in respect of the benefits due under the schemes (taking into account recent demographic experience), and to recommend contribution rates payable by employees and employers.

The latest actuarial valuation undertaken for the NHS Pension Scheme was completed as at 31 March 2016. The results of this valuation set the employer contribution rate payable from April 2019 to 20.6% of pensionable pay. The 2016 funding valuation was also expected to test the cost of the Scheme relative to the employer cost cap that was set following the 2012 valuation. In January 2019, the Government announced a pause to the cost control element of the 2016 valuations, due to the uncertainty around member benefits caused by the discrimination ruling relating to the McCloud case.

The Government subsequently announced in July 2020 that the pause had been lifted, and so the cost control element of the 2016 valuations could be completed. The Government has set out that the costs of remedy of the discrimination will be included in this process. HMT valuation directions will set out the technical detail of how the costs of remedy will be included in the valuation process. The Government has also confirmed that the Government Actuary is reviewing the cost control mechanism (as was originally announced in 2018). The review will assess whether the cost control mechanism is working in line with original government objectives and reported to Government in April 2021. The findings of this review will not impact the 2016 valuations, with the aim for any changes to the cost cap mechanism to be made in time for the completion of the 2020 actuarial valuations.

39

Pilgrims Hospices in East Kent

Notes to the financial statements

For the year ended 31 March 2021

Investment management
Income from:
Net movement in funds
Total funds brought forward
Total funds carried forward
Expenditure on:
Net (expenditure)/income before other recognised
gains and losses
Fundraising income
Fundraising costs
Donations and legacies
Charitable activities
Other trading activities
Investments
Raising funds
Charitable activities
Total income
Total expenditure
Net (expenditure)/income before investment gains
Net gains on investments		 Unrestricted
£'000
2,164
3,067
5,808
251		 Restricted
£'000
693
3
-
-		 Endowment
£'000
-
-
-
-		 2020
Total
£'000
2,857
3,070
5,808
251
11,290 696 - 11,986
3,710
73
9,702		 -
-
554		 -
-
-		 3,710
73
10,256
13,485 554 - 14,039
(2,195)
343		 142
-		 -
-		 (2,053)
343
(1,852)
(1,852)
23,054		 142
142
174		 -
-
13		 (1,710)
(1,710)
23,241
21,202 316 13 21,531
Donations
Legacies		 Unrestricted
£'000
1,305
724		 £'000
47
1,005
Restricted		 2021
Total
£'000
1,352
1,729		 Unrestricted
£'000
1,293
871		 £'000
233
460
Restricted		 2020
Total
£'000
1,526
1,331
2,029 1,052 3,081 2,164 693 2,857

At the balance sheet date, Pilgrims had received notice of £573,000 of reversionary legacies which may become receiveable in the future. These legacies are gifts of money or assets which only take effect subject to the prior right of a named person or persons to receive the benefit of those monies or assets, or income produced by them, during the person or persons lifetime. The gift then passes absolutely to Pilgrims as the “reversionary beneficiary” on the death of the named person or persons.

40

Pilgrims Hospices in East Kent

Notes to the financial statements

For the year ended 31 March 2021

4 Income from charitable activities

Grants receiveable
Local Health Authority
NHSE/Hospice UK
Other grants
Total grants receiveable
Fees receivable
Medical fees
Ministers' fees
Total fees receiveable
Total income from
charitable activities
Course fees and hire of
facilities		 Unrestricted
£'000
2,720
3
1,904		 £'000
156
2,074
-
Restricted		 2021
Total
£'000
2,876
2,077
1,904		 Unrestricted
£'000
2,639
-
23		 £'000
-
-
3
Restricted		 2020
Total
£'000
2,639
-
26
4,627
360
-
57		 2,230
-
-
-		 6,857
360
-
57		 2,662
306
-
99		 3
-
-
-		 2,665
306
-
99
417 - 417 405 - 405
5,044 2,230 7,274 3,067 3 3,070

The Local Health Authority Grant is a grant from the local NHS Clinical Commissioning Groups (CCGs) awarded under a service funding agreement for the provision of specialist palliative and Hospice at Home care.

NHS England (NHSE) awarded funding (distributed via Hospice UK) to allow the hospice to make available bed capacity and community support from April 2020 to July 2020 to provide support to people with complex needs in the context of the COVID-19 situation and to provide bed capacity and community support from November 2020 to March 2021 for the same purpose.

5 Income from fundraising

Trading sales (note 17)
General fundraising
Income from Retail
Income from Lottery
Proceeds of events		 2021
Total
£'000
77
502
1,296
1,151
47		 2020
Total
£'000
71
1,076
3,404
1,174
83
3,073 5,808

All income from fundraising activities is unrestricted.

6 Income from investments

Listed investments
Interest receivable on cash deposits
Investment properties		 2021
Total
£'000
156
139
1		 2020
Total
£'000
148
96
7
296 251

All income from investments is unrestricted.

41

Pilgrims Hospices in East Kent

Notes to the financial statements

For the year ended 31 March 2021

7a Analysis of expenditure (current year)

Direct costs
Staff costs (note 10)
Staff agency costs
Food
Medical supplies
Laundry and cleaning
Heat, light and water
Repairs and maintenance
Postage, printing and stationery
Recruitment advertising and fees
Telephone
Insurance
Travel
Course fees and expenses
Professional books and journals
Costs of education centre
Prizes
Other costs
Trading company costs of sales
Publicity
Event costs
Investment property costs
Investment management fees
Depreciation
Support costs (note 8a)
Governance costs (note 8a)
Total charity expenditure 2021
Total charity expenditure 2020		 Fundraising
costs
£'000
565
-
-
-
-
-
-
95
-
-
-
-
-
-
-
213
77
11
5
-
-
-
-		 £'000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
42
38
-
Investment
management		 Charitable activities Charitable activities 2021 Total
£'000
7,995
146
56
148
87
163
238
112
-
68
-
51
24
1
3
213
95
11
5
-
42
38
315		 2020
Total
£'000
7,958
163
70
85
86
119
234
97
18
65
-
162
61
1
8
213
365
36
12
-
42
31
283
£'000
5,896
146
56
148
87
163
238
17
-
22
-
21
-
-
-
-
18
-
-
-
-
-
315
In-patient		 Community
services
£'000
1,031
-
-
-
-
-
-
-
-
46
-
29
-
-
-
-
-
-
-
-
-
-		 Counselling
£'000
393
-
-
-
-
-
-
-
-
-
-
1
-
-
-
-
-
-
-
-
-
-
-		 £'000
110
-
-
-
-
-
-
-
-
-
-
-
24
1
3
-
-
-
-
-
-
-
-
Information
and
education
966
1,909
-		 80
-
-		 7,127
1,038
195		 1,106
161
30		 394
58
11		 138
19
4		 9,811
3,185
240		 10,108
3,676
254
2,875 80 8,360 1,297 463 161 13,236 14,038
3,710 73 8,030 1,471 535 220

42

Pilgrims Hospices in East Kent

Notes to the financial statements

For the year ended 31 March 2021

7b Analysis of expenditure (prior year)

Direct costs
Staff costs (note 10)
Staff agency costs
Food
Medical supplies
Laundry and cleaning
Heat, light and water
Repairs and maintenance
Postage,printing and stationery
Recruitment advertising and fees
Telephone
Insurance
Travel
Course fees and expenses
Professional books and journals
Costs of education centre
Prizes
Other costs
Trading company costs of sales
Publicity
Event costs
Investment property costs
Investment management fees
Depreciation
Support costs
Governance costs
Total charity expenditure		 Fundraising
costs
£'000
633
21
-
-
-
-
-
59
-
-
-
-
-
-
-
213
322
36
11
-
-
-
-
1,295
2,415
-
3,710		 £'000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
42
31
-
Investment
management		 Charitable activities Charitable activities 2020 Total
£'000
7,958
163
70
85
86
119
234
97
18
65
-
162
61
1
8
213
365
36
12
-
42
31
283
£'000
5,641
142
70
85
86
119
234
38
18
23
-
62
-
-
-
-
42
-
-
-
-
-
283
In-patient		 Community
services
£'000
1,114
-
-
-
-
-
-
-
-
42
-
96
-
-
-
-
1
-
-
-
-
-
-		 Counselling
£'000
457
-
-
-
-
-
-
-
-
-
-
1
-
-
-
-
-
-
-
-
-
-
-		 £'000
113
-
-
-
-
-
-
-
-
-
-
3
61
1
8
-
-
-
1
-
-
-
-
Information
and
education
73
-
-		 6,843
987
200		 1,253
182
36		 458
64
13		 187
28
5		 10,108
3,676
254
73 8,030 1,471 535 220 14,038

43

Pilgrims Hospices in East Kent

Notes to the financial statements

For the year ended 31 March 2021

8a Support and governance costs (current year)

Charitable activities

Staff costs
Staff agency costs
Repairs and maintenance
Postage, print and stationery
Telephone
Travel
Occupational health
Life assurance
Computer costs
Bank charges
Auditors' remuneration
Professional and consultancy fees
Other shops and lottery costs
Rent and rates
Partial exemption adjustment
Sundry
Depreciation
Allocation of governance
Total support and governance
expenditure 2021		 Fundraising
costs
£'000
1,018
43
43
-
-
-
-
-
-
-
2
-
402
397
-
-
4
1,909
-
1,909		 £'000
737
27
10
5
-
-
8
11
136
14
-
13
-
-
17
60
-
1,038
195
1,233
In-patient		 Community
services
£'000
114
4
2
1
-
-
1
2
21
2
-
2
-
-
3
9
-
161
30
191		 Counselling
£'000
41
1
1
-
-
-
-
1
8
1
-
1
-
-
1
3
-
58
11
69		 £'000
14
1
-
-
-
-
-
-
3
-
-
-
-
-
-
1
-
19
4
23
Information
and
education		 Governance
£'000
155
6
2
1
-
-
2
2
29
3
21
3
-
-
3
13
-
240
(240)
-		 2021 Total
£'000
2,079
82
58
7
-
-
11
16
197
20
23
19
402
397
24
86
4
3,425		 2020
Total
£'000
2,109
171
116
33
-
1
8
30
172
21
44
22
601
492
30
55
25
3,930
3,930

44

Pilgrims Hospices in East Kent

Notes to the financial statements

For the year ended 31 March 2021

8b Support and governance costs (prior year)

Charitable activities

Staff costs
Staff agency costs
Repairs and maintenance
Postage, ptint and stationery
Telephone
Travel
Occupational health
Life assurance
Computer costs
Bank charges
Auditors' remuneration
Professional and consultancy fees
Other shops and lottery costs
Rent and rates
Partial exemption adjustment
Sundry
Depreciation
Approved by the trustees on 29 Septembe
Allocation of governance
Total expenditure 2020		 Fundraising
costs
£'000
1,041
141
114
-
-
-
-
-
-
-
1
-
601
492
-
-
25
~~r 2021 and sig~~
2,415
-
2,415		 £'000
715
20
2
22
-
1
6
20
115
14
-
15
-
-
20
37
-
~~ned on their be~~
987
200
1,187
In-patient		 Community
services
£'000
131
4
-
4
-
-
1
4
21
3
-
3
-
-
4
7
-
~~half by~~
182
36
218		 Counselling
£'000
48
1
-
1
-
-
-
1
8
1
-
1
-
-
1
2
-
64
13
77		 £'000
20
1
-
1
-
-
-
1
3
-
-
-
-
-
1
1
-
28
5
33
Information
and
education		 Governance
£'000
154
4
-
5
-
-
1
4
25
3
43
3
-
-
4
8
-
254
(254)
-		 2020 Total
£'000
2,109
171
116
33
-
1
8
30
172
21
44
22
601
492
30
55
25
3,930

45

Pilgrims Hospices in East Kent

Notes to the financial statements

For the year ended 31 March 2021

9 Net income/(expenditure) for the year

This is stated after charging / (crediting):

This is stated after charging / (crediting):
2021 2020
£'000 £'000
Depreciation 318 307
Operating lease rentals:
Property 400 432
Other 63 67
Operating lease rentals receivable:
Property (156) (148)
Auditor's remuneration (excluding VAT):
Audit of charity - current year 22 22
Audit of charity - under/(over) accrual in previous years (1) 19
Audit of trading subsidiary 2 2

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

Staff costs were as follows:

Appr
Allocated to:
Direct costs (note 7)
Support and governance (note 8)
Redundancy and termination costs
Social security costs
Employer’s contribution to defined contribution pension schemes
Salaries and wages		 2021
£'000
8,620
-
753
701		 2020
£'000
8,564
6
770
727
10,074 10,067
7,995
2,079		 7,958
2,109
10,074 10,067

The following number of employees received employee benefits (excluding employer pension costs and employer's national insurance) during the year between:

2021 2020
No. No.
£60,000 - £69,999 5 5
£70,000 - £79,999 3 3
£80,000 - £89,999 - -
£90,000 - £99,999 - 1
£100,000 - £109,999 1 -

The total employee benefits (including pension contributions and employer's national insurance) of the key management personnel were £496,492 (2020: £554,153).

The charity trustees were neither paid nor received any other benefits from employment with the charity in the year (2020: £nil). No charity trustee received payment for professional or other services supplied to the charity (2020: £nil).

Trustees' expenses represents the payment or reimbursement of travel and subsistence costs totalling £Nil (2020: £383) incurred by 0 (2020: 1) trustee(s) relating to attendance at meetings of the trustees.

46

Pilgrims Hospices in East Kent

Notes to the financial statements

For the year ended 31 March 2021

11 Staff numbers

The average number of employees (head count based on number of staff employed) during the year was 359 (2020: 399).

Staff are split across the activities of the charity as follows :

Staff are split across the activities of the charity as follows :
Information and education
Administration and support
Trading
Fundraising
In-patient
Community services
Counselling		 2021
2020
No.
No.
26.0
28.0
43.0
47.0
211.0
235.0
39.0
44.0
12.0
15.0
9.0
12.0
19.0
18.0
359.0
399.0
Headcount		 2021
2020
No.
No.
22.0
22.0
42.0
44.0
145.0
147.0
33.0
35.0
10.0
11.0
5.0
6.0
19.0
20.0
276.0
285.0
Full time equivalent
359.0 399.0 276.0 285.0

12 Related party transactions

During the year, donations amounting to £2,753 were made by trustees to the charity. Other than these donations, there were no donations from other related parties which were outside the normal course of business and there were no restricted donations from related parties.

Pilgrims Hospices Trading Limited incurred management charges payable to the Charity of £1,511 (2020: £2,267). In addition, the Charity purchased goods from Pilgrims Hospices Trading of £nil (2020: £nil). Pilgrims Hospices Trading covenanted its profit of £34,137 (2020: £41,382) to the Charity.

13 Taxation

The charity is exempt from corporation tax as all its income is charitable and is applied for charitable purposes. The charity's trading subsidiary Pilgrims Hospices Trading Limited distributes under Gift Aid available profits to the parent charity. Its charge to corporation tax in the year was:

2021 2020
£'000 £'000
UK corporation tax at 19% - -

47

Pilgrims Hospices in East Kent

Notes to the financial statements

For the year ended 31 March 2021

14 Tangible fixed assets

Cost
Depreciation
Net book value
Disposals in year
At the end of the year
At the start of the year
Charge for the year
At the start of the year
Additions in year
The group and charity
At the end of the year
At the start of the year
Eliminated on disposal
At the end of the year		 Freehold
land and
buildings
£'000
10,860
1
(321)		 Long
leasehold
land and
buildings
£'000
2,671
13
-		 Furniture
and
furnishings
£'000
318
-
-		 Equipment
£'000
871
62
(36)		 Motor
vehicles
£'000
82
-
(44)		 Total
£'000
14,802
76
(401)
10,540 2,684 318 897 38 14,477
3,283
169
(100)		 1,264
66
-		 288
6
-		 643
71
(36)		 56
6
(28)		 5,534
318
(164)
3,352 1,330 294 678 34 5,688
7,188 1,354 24 219 4 8,789
7,577 1,407 30 228 26 9,268

Land with a value of £2 million (2020: £2 million) is included within freehold property and not depreciated.

All of the above assets are used for charitable purposes.

15
Investment properties
Additions
Revaluation during the year
Disposals
Fair value at the end of the year
The group and charity
Fair value at the start of the year
Historic cost		 2021
£'000
2,580
250
-
780		 2020
£'000
1,892
-
(65)
753
3,610 2,580
1,418 1,167

The properties were last valued, as at 31 March 2021, in May 2021 by Rob Bryer, MARLA MNAEA from The Good Estate Agent.

Management undertakes regular reviews of the condition of the investment properties and regular maintenance is undertaken in order to maintain values.

48

Pilgrims Hospices in East Kent

Notes to the financial statements

For the year ended 31 March 2021
16
Cash
Fixed interest
Managed funds (equity based)
Alternative investment funds
Listed investments
The group and charity
All fixed assets are held in the UK.
Investments comprise:
Additions at cost
Disposal proceeds
Net (loss)/gain on change in fair value
Fair value at the end of the year
Fair value at the start of the year		 Listed
£'000
6,491
5,767
(5,358)
1,029		 Other
£'000
452
-
(453)
-		 2021
£'000
6,943
5,767
(5,811)
1,029		 Listed
£'000
7,207
4,684
(4,990)
(410)		 Other
£'000
161
291
-
-		 2020
£'000
7,368
4,975
(4,990)
(410)
7,929 (1) 7,928 6,491 452 6,943
2021
£'000
3,570
4,359
-
(1)		 2020
£'000
3,390
3,101
-
452
7,928 6,943

49

Pilgrims Hospices in East Kent

Notes to the financial statements

For the year ended 31 March 2021

17 Subsidiary undertakings

The charity owns the whole of the issued ordinary share capital (2 ordinary shares of £1 each) of Pilgrims Hospices Trading Limited, a company registered in England. The company number is 07993259. The registered office address is 56 London Road, Canterbury, Kent CT2 8JA.

The subsidiary is used for non-primary purpose trading activities. All activities have been consolidated on a line by line basis in the statement of financial activities. Available profits are distrbuted under Gift Aid to the parent charity.

The charity also owns the whole of the issued ordinary share capital of Hospice Shops Limited (company registration number 01623758) (3 ordinary shares of £1 each) and Pilgrims Hospice Lottery Limited (company registration number 03130167) (2 ordinary shares of £1 each). Both are incorporated in England and Wales, and the registered office is 56 London Road, Canterbury, Kent CT2 8JA.

Hospice Shops Limited and Pilgrims Hospice Lottery Limited are dormant and did not trade during the year.

The Chair of Pilgrims Hospices in East Kent, Karen Warden, is also the director of all the subsidiary companies.

A summary of the results of Pilgrims Hospices Trading Limited is shown below:

Management charge payable to parent undertaking
Reserves
The aggregate of the assets, liabilities and reserves was:
Assets
Gross profit/(loss)
Administrative expenses
Profit for the financial year
Taxation on profit on ordinary activities
Retained earnings
Total retained earnings brought forward
Profit for the financial year
Distribution under Gift Aid to parent charity
Total retained earnings carried forward
Liabilities
Profit on ordinary activities before taxation
Turnover
Cost of sales		 2021
£'000
47
(11)		 2020
£'000
83
(36)
36
-
(2)		 47
(4)
(2)
34
-		 41
-
34 41
-
34
(34)		 -
41
(41)
- -
64
(64)		 82
(82)
- -

Amounts owed to/from the parent undertaking are shown in note 20.

18 Parent charity

The parent charity's gross income and the results for the year are disclosed as follows:

2021 2020
£'000 £'000
Gross income 13,714 11,946
Result for the year 2,296 (1,765)

50

Pilgrims Hospices in East Kent

Notes to the financial statements

For the year ended 31 March 2021

19 Stock

20
Trade debtors
Other debtors
Accrued legacy income
Prepayments and other accrued income
Finished goods
Amounts due from group undertakings
Debtors		 2021
2020
£'000
£'000
13
14
2021
2020
£'000
£'000
122
344
8
137
-
-
621
137
526
862
1,277
1,480
The group
The group		 2021
2020
£'000
£'000
13
14
2021
2020
£'000
£'000
122
344
8
137
-
-
621
137
526
862
1,277
1,480
The group
The group		 2021
2020
£'000
£'000
-
6
2021
2020
£'000
£'000
122
344
-
137
58
63
621
137
526
862
1,327
1,543
The charity
The charity		 2021
2020
£'000
£'000
-
6
2021
2020
£'000
£'000
122
344
-
137
58
63
621
137
526
862
1,327
1,543
The charity
The charity
1,277 1,480 1,327 1,543

21 Creditors: amounts falling due within one year

Accruals
Other taxation and social security
Trade creditors
Corporation tax
Other creditors
Deferred income (note 22)		 2021
2020
£'000
£'000
278
198
-
-
210
196
60
26
107
259
200
355
855
1,034
The group		 2021
2020
£'000
£'000
278
198
-
-
210
196
60
26
107
259
200
355
855
1,034
The group		 2021
2020
£'000
£'000
278
195
-
-
210
183
60
26
101
256
200
355
849
1,015
The charity		 2021
2020
£'000
£'000
278
195
-
-
210
183
60
26
101
256
200
355
849
1,015
The charity
855 1,034 849 1,015

22 Deferred income

Deferred income comprises lottery subscriptions, course fees and fundraising activitiers taking place in the following year.

Amount deferred in the year
Balance at the beginning of the year
Amount deferred in the year
Amount released to income in the year
Balance at the end of the year		 2021
2020
£'000
£'000
355
212
200
355
(355)
(212)
200
355
The group		 2021
2020
£'000
£'000
355
212
200
355
(355)
(212)
200
355
The group		 2021
2020
£'000
£'000
355
212
200
355
(355)
(212)
200
355
The charity		 2021
2020
£'000
£'000
355
212
200
355
(355)
(212)
200
355
The charity
200 355 200 355

23 Financial instruments

Listed Investments
Financial assets measured at fair value through profit and loss
Investment properties		 2021
£'000
3,610
7,928		 2020
£'000
2,580
6,943
11,538 9,523

51

Pilgrims Hospices in East Kent

Notes to the financial statements

For the year ended 31 March 2021

24a Analysis of group net assets between funds (current year)

Tangible fixed assets
Investment properties
Investments
Net current assets
Net assets at 31 March 2021		 £'000
-
3,610
7,915
3,093
General
unrestricted		 £'000
8,789
-
-
-
Designated
funds		 Restricted
funds
£'000
-
-
-
408		 £'000
-
-
13
-
Endowment
funds		 Total
funds
£'000
8,789
3,610
7,928
3,501
14,618 8,789 408 13 23,828

24b Analysis of group net assets between funds (prior year)

Investment properties
Net assets at 31 March 2020
Tangible fixed assets
Investments
Net current assets		 £'000
-
2,580
6,930
2,424
General
unrestricted		 £'000
9,268
-
-
-
Designated
funds		 Restricted
funds
£'000
-
-
-
316		 £'000
-
-
13
-
Endowment
funds		 Total
funds
£'000
9,268
2,580
6,943
2,740
11,934 9,268 316 13 21,531

25a Movements in funds (current year)

Total restricted funds
Total designated funds
Revaluation reserve
General funds
Permanent endowment fund
Sundry projects
Restricted funds:
Ashford Hospice
Bedside Funds
Canterbury Hospice
Thanet Hospice
Virtual reality headsets
Unrestricted funds:
Designated funds:
Fixed asset fund
Endowment funds:
Total funds
Total unrestricted funds
Hospice at Home		 £'000
13
109
14
20
26
-
14
133
At 1 April
2020		 £'000
-
1,052
2
1,118
953
1
-
156
Income		 £'000
-
(1,071)
(8)
(1,120)
(968)
(1)
(14)
(8)
Expenditure		 £'000
-
-
-
-
-
-
-
-
Transfers		 £'000
-
-
-
-
-
-
-
-
Gains/
(losses)		 £'000
13
90
8
18
11
-
-
281
Net assets
at 31
March
316 3,282 (3,190) - - 408
9,268 - (479) - 8,789
9,268 - - (479) - 8,789
1,413
10,521		 -
10,442		 -
(10,046)		 (1)
480		 780
1,029		 2,192
12,426
21,202 10,442 (10,046) - 1,809 23,407
21,531 13,724 (13,236) - 1,809 23,828

The narrative to explain the purpose of each fund is given at the foot of the note below.

52

Pilgrims Hospices in East Kent

Notes to the financial statements

For the year ended 31 March 2021

25b Movements in funds (prior year)

Total restricted funds
Total designated funds
Revaluation reserve
General funds
Unrestricted funds:
Designated funds:
Fixed asset fund
Permanent endowment fund
Thanet Hospice
Restricted funds:
Total unrestricted funds
Canterbury Hospice
Ashford Hospice
Endowment funds:
Hospice at Home
Virtual reality headsets
Bedside Fund
Sundry projects
Total funds		 £'000
13
36
1
21
23
-
-
93
At 2 April
2019		 £'000
-
290
14
193
135
1
14
49
Income		 £'000
-
(222)
-
(192)
(122)
(1)
-
(17)
Expenditure		 £'000
-
5
(1)
(2)
(10)
-
-
8
Transfers		 £'000
-
-
-
-
-
-
-
-
Gains/
(losses)		 £'000
13
109
14
20
26
-
14
133
At 31
March
2020
174 696 (554) - - 316
9,289 - - (21) - 9,268
9,289 - - (21) - 9,268
1,260 - - (600) 753 1,413
12,505 11,290 (13,485) 621 (410) 10,521
23,054 11,290 (13,485) - 343 21,202
23,241 11,986 (14,039) - 343 21,531

Purpose of endowment fund

This represents part of the total assets of the Canterbury Dispensary Fund, received in the year to 31 March 2000. The capital is invested in a unit trust.

Purposes of restricted funds

These represent donations, legacies and grants received for specific purposes. Those funds associated with the three hospice sites are for projects to be undertaken for the improvement of patient care at those specific sites.

The Bedside Fund provides funding for the upgrade or replacement of items of equipment needed ‘at the bedside’ across the three hospice sites.

The Virtual reality headsets fund will enable the provision of Virtual headsets on each inpatient unit that can be utilised as diversional Therapy, reducing anxiety and pain in patients.

Included in Sundry projects is a legacy specifically for the funding of training for health and social care professionals, with a revised programme planned for 2020, as well as a grant for a pilot scheme with certain east Kent GP practices to help identify patients that would benefit from early referral to Pilgrims' services and expertise. The projects also include a fund for the employment of a Specialist Nurse who will recruit and train expert volunteers to provide bereavement support to bereaved families across east Kent.

Purposes of designated funds

The fixed asset fund has been set up to identify those funds that are not free funds and it represents the net book value of tangible fixed assets. The transfer between the unrestricted general fund and the fixed asset fund represents the net movement in the net book value of fixed assets in the year.

Revaluation reserve

The revaluation reserves represents the increase in valuation of investment properties above the cost price paid.

53

Pilgrims Hospices in East Kent

Notes to the financial statements

For the year ended 31 March 2021

26 Operating lease commitments payable as a lessee

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

Less than one year
One to five years
Over five years		 2021
£'000
413
505
164
Land and		 2020
£'000
396
815
232
buildings		 2021
2020
£'000
£'000
44
19
29
37
-
-
73
56
Equipment and vehicles		 2021
2020
£'000
£'000
44
19
29
37
-
-
73
56
Equipment and vehicles
1,082 1,443 73 56

27 Pension commitments - defined benefit plan

The Charity participates in the Baptist Pension Scheme (the Plan). The Plan is funded and is not contracted out of the state scheme. It is a multi-employer pension plan and it is not possible, in the normal course of events, to identify, on a reasonable and consistent basis, the share of underlying assets and liabilities belonging to individual participating employers. Accordingly, due to the nature of the Plan, the accounting charge for the period under FRS102 represents the employer contribution payable. While the Plan is primarily a defined contribution scheme it has inherent guarantees that mean the charity may need to make further contributions to meet deficits.

Following a change in legislation in September 2005 there is a potential debt on the employer that could be levied by the Trustee of the Plan and The Pensions Act 2011 has more recently altered the definitions. The debt is due in the event of the employer ceasing to participate in the Plan or the Plan winding up. The debt for the Plan as a whole is calculated by comparing the liabilities for the Plan (calculated on a buy-out basis i.e. the cost of securing benefits by purchasing annuity policies from an insurer, plus an allowance for expenses) with the assets of the Plan. If the liabilities exceed assets there is a buy-out debt.

The leaving employer’s share of the buy-out debt is the proportion of the Plan’s liability attributable to employment with the leaving employer compared to the total amount of the Plan’s liabilities (relating to employment with all the currently participating employers). The leaving employer’s debt therefore includes a share of any ‘orphan’ liabilities in respect of previously participating employers. The amount of the debt therefore depends on many factors including total Plan liabilities, Plan investment performance, the liabilities in respect of current and former employees of the employer, financial conditions at the time of the cessation event and the insurance buy-out market. The amounts of debt can therefore be volatile over time.

The Charity has been notified by the Baptist Pension Scheme of the estimated employer debt on withdrawal from the Plan based on the current financial position of the Plan. As of 20 February 2020 the estimated employer debt for the Charity was £35,900 (2020:£35,900). This potential debt is included in the financial statements in current liabilities. The Charity has not been notified of additional contributions that will be payable in order to eliminate the deficit in the Plan.

In accordance with the charity’s accounting policy, any such expenditure will be recognised in the accounts as the contributions become payable. The Trustees consider any such excess unlikely.

28 Legal status of the charity

The charity is a company limited by guarantee and has no share capital. The liability of each member in the event of winding up is limited to £1.

54