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2021-03-31-accounts

GARDEN HOUSE HOSPICE CARE

(A company limited by guarantee and not having a share capital) TRUSTEES’ ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

Garden House Hospice Care Company Limited by Guarantee No. 2040989 Registered Charity No. 295257

Registered Office: Garden House Hospice, Gillison Close, Letchworth Garden City Herts SG6 1QU

GARDEN HOUSE HOSPICE CARE

REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

CONTENTS Page
Administrative information 1 - 2
Chairman’s Report 3 – 4
Trustees’ Report (incorporating the Strategic Report) 5 – 21
Independent Auditor’s Report 22 – 25
Consolidated Statement of Financial Activities 26
Charity and Consolidated Balance Sheets 27
Consolidated Cash Flow Statement 28
Notes to the Financial Statements 29 - 44

GARDEN HOUSE HOSPICE CARE ADMINISTRATIVE INFORMATION FOR THE YEAR ENDED 31 MARCH 2021

PATRONS Sir Simon Bowes Lyon KCVO
Mr Paul Cherry
Mrs Krystyna Duffy
Lord and Lady Fellowes
Mrs Sarah Harrison
Sir Oliver Heald QC, MP
Dr Tim Hunt
Mrs Diana Laing
The Chairman of North Herts District Council
The Mayor of Royston
The Mayor of Stevenage
The Bishop of St Albans
Mr Richard Whitmore
Mrs Boo Williams
HONORARY VICE PRESIDENTS Dr Frances Aldridge, Mrs Sally Alford, Mrs Sheila Ball, Mr Ivor
Barber, Mr Trevor Bentham, Mrs Mary Blaksley, Mrs Trudy
Bunday, Mr John Bush, Mr Bernard Davies, Mr Andrew Egerton-
Smith MBE, Mrs Rosemary Gillham, Mrs Mary Guernier, Mr Peter
Harkness, Mr David Heymans, Mrs Janet Hill, Mrs Anne Houghton,
Mr Anthony Isaacs, Dr Viv Lucas, Mrs Jenny Lupton, Mr Roger
Manning, Mrs Janet Nevitt, Dr Catherine Offer, Mr John Penasa,
Mr Peter Willmott.
TRUSTEES Mr John Procter (Chairman)
Mrs Eleanor Cooke2,3RIP (Resigned 22.02.21)
Mrs Helen Dodd1
Professor Ken Farrington1
Mr Roger Gochin2,3
Mrs Susan Greenbank2,3(Resigned 15.02.21)
Dr John Machen1
Mr Stephen Mellish2,3
Mrs Dawn Morrish1(Resigned 01.03.21)
Mrs Rhona Seviour (Vice Chair)1,2
Mr James Silsby2
Sir Tim Wilson DL2,3
SECRETARY Sir Tim Wilson DL
TREASURER Mr Roger Gochin
SENIOR LEADERSHIP TEAM Mrs Sue Plummer (Chief Executive Officer)
(KEY MANAGEMENT PERSONNEL) Dr Sarah Bell (Medical Director)
Mrs Helen Clark (Head of Operations)
Mrs Jayne Dingemans (Director of Patient Services)
Mr Philip Mahan (Interim Director of Finance)
Mrs Carla Pilsworth (Director of Income Generation)
Mrs Becky Turner (People Director)

1 Hospice Care and Clinical Governance Committee

2 Finance and General Purposes Committee

3 Director of Trading Company

1

GARDEN HOUSE HOSPICE CARE

ADMINISTRATIVE INFORMATION (continued)

FOR THE YEAR ENDED 31 MARCH 2021

REGISTERED AUDITORS Haysmacintyre LLP 10 Queen Street Place London EC4R 1AG BANKERS Yorkshire Bank Plc Lloyds Bank Plc 2/4 George Street 1 Bancroft Luton Hitchin Bedfordshire Hertfordshire The Charities Aid Foundation NatWest Bank Kings Hill Station Place West Malling Letchworth Garden City Kent Hertfordshire HONORARY CHARTERED BUILDING Robert Lombardelli Partnership SURVEYORS St Luke’s House 5 Walsworth Road Hitchin Hertfordshire, SG6 1QU REGISTERED OFFICE Garden House Hospice Care Gillison Close Letchworth Garden City Hertfordshire SG6 1QU COMPANY NUMBER 02040989 CHARITY NUMBER 295257 OPERATING NAME Garden House Hospice Care TRADING COMPANY Garden House Hospice Trading Limited (Company no. 02671267)

2

GARDEN HOUSE HOSPICE CARE

CHAIRMAN’S REPORT

FOR THE YEAR ENDED 31 MARCH 2021

_________________

The 2020/2021 financial year covers a period of significant adjustment to the work of Garden House Hospice Care (GHHC) and the activities of the Trading Company and the testing of the resilience of staff, volunteers, the Senior Leadership Team and Trustees in keeping both organisations moving forwards during unprecedented times. We were delighted that Jayne Dingemans, who recently retired from her post of Director of Patient Services, was awarded the British Empire Medal for her services to end of life care during the pandemic.

Nationally, lockdown measures introduced in late March 2020, closed our shops and the work of the Distribution Centre until July. A second lockdown came into force in November to be replaced by a tiered system of restrictions. This meant our shops and the Distribution Centre closed for a second time from late December only to reopen in April 2021.

In parallel with these major interruptions to our trading activity, fund raising opportunities were also severely curtailed. However, to reduce the shortfall in income against our target for the year of £1.3 million an emergency fundraising appeal was launched and, thanks to the huge effort of many, this had secured £600 thousand by the end of the financial year. National and local government grants also eased the financial pressure on the Trading Company and the Hospice considerably during this period and totalled some £2.05 million by the end of March.

This set of accounts confirms that overall GHHC income exceeded its expenditure by £2.497 million for the year (including the gain on investments of £270 thousand). However, we must remember once again that legacies are unpredictable and provided 12% of our total income. Also, the negative effects of the Coronavirus on our fundraising and trading activities will be felt throughout the current financial year and, likely, beyond. Government grants, too, will be significantly reduced this year.

The way in which we managed our activities and the way we communicated with one another and with our patients, relatives and health professionals changed radically as part of our response to the Coronavirus and the need to keep moving forward positively. Zoom meetings became the norm and the frequency of meetings of Trustees and senior staff was increased for a period to ensure that the governance of our activities kept pace with the rapidly changing internal and external environments. For example, we very successfully used online technology to support and stay in touch through the Hawthorne Centre (including medical outpatients), Family Support Services, the medical team and Compassionate Neighbours. The Education Team and Frailty Specialist Nurses also found the use of technology invaluable as a way of providing support and education to local nursing homes at a time when these were under huge pressure.

For some years, we have collaborated with Isabel Hospice, and other hospices, in providing some of our services. The decision, taken by the Board in April 2020, to explore possible merger with Isabel Hospice was a key priority during 2020/21 and rightly merited the expenditure of a vast amount of time and effort by Trustees and senior staff of both hospices. Extensive research, frequent meetings and close attention to due diligence were necessary to enable us to assess the potential benefits of merger to our patients and their families and of achieving our ambition of reaching more people whilst providing better value for money. I am grateful for the serious and dedicated way in which Trustees and senior staff contributed to this work which, in the end, led to a decision not to pursue merger at the present time. I should also like to thank the Clinical Commissioning Group (CCG) for supporting our exploration of merger. This experience has confirmed our view that collaborative and partnership working is essential in helping us increase and improve our patient services and end-of-life care for the wider community and this will be a key feature of our strategy for 2022-25.

Safeguarding remained a key focus for Trustees and senior staff with improvements in the year to the wellbeing support for staff and volunteers and developments in their supervision and training, as well as policy development including the appointment of a Freedom to Speak Up Champion.

Dawn Morrish, Susan Greenbank and Eleanor Cook resigned as Trustees, and we thank them for all their support and contributions to the work of the Board and the Hospice. We also thank Susan and Eleanor for their contribution as Directors of the Trading Company.

3

GARDEN HOUSE HOSPICE CARE

CHAIRMAN’S REPORT

FOR THE YEAR ENDED 31 MARCH 2021

_________________

It was with great sadness that the Board learned that Eleanor Cooke, a Trustee for the last six years, died in late March 2021 in our in-patient unit. Eleanor had been associated with Garden House for many years as a volunteer, as well as a Trustee and a Director of the Trading Company. We will miss her greatly.

We look to the future with huge optimism. We know that our services are vital and needed now more than ever before, particularly given the increased demands on our hospitals and GPs. We remain determined to do all we can to learn from the challenges of the last 12 months and adapt our services to the ‘new normality’ mindful, of course, that the pandemic has not disappeared. We know that our biggest challenge is the national shortage of clinical staff and, in response to this, have developed a workforce strategy which includes extending our provision for training nurses and other health professionals. This includes offering nursing apprenticeships and traineeships as well our continued training in palliative care for GPs, specialist palliative care registrars and medical students. Alongside our provision of in-patient, day and community-based provision, we are keen to build the resilience of our community to respond to a wide range of life-limiting illnesses; the recent YouTube video made by our two consultants, Dr Sarah and Dr Ros, on Advanced Care Planning is an excellent example of this. Similarly, the Compassionate Neighbours scheme continues to play a very significant role in combatting loneliness. These and other innovative activities will underpin our strategy for the next three years as will our recruitment of new trustees, a greater focus on inclusion, equality and diversity and, importantly, placing more emphasis on sustainability in all areas of the organisation including the Trading Company. Our care for our precious environment must have the same attention as our care for our patients and their families and our care for each other.

At the end of the financial year, I stood down after six years as Chairman of the Board of Trustees and am delighted to be able to continue as a Trustee. It has been a great honour to be associated with Garden House Hospice Care and I should like to end by thanking all our volunteers and staff for the part they have played in sustaining Garden House Hospice Care during 2020/21. Your dedication, hard-work and skill have ensured that Garden House, which was started by the community, continues to serve it in many different ways. My thanks to each of you!

John Procter Chairman of Trustees

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GARDEN HOUSE HOSPICE CARE

TRUSTEES’ REPORT

FOR THE YEAR ENDED 31 MARCH 2021

_________________ Garden House Hospice Care (GHHC), being a company limited by guarantee and a registered charity, has adopted the practice that the Directors (Council Members) be called Trustees and the Board of Directors (Council of Management) be known as the Board of Trustees.

Objectives and Activities

GHHC exists to provide specialist palliative care for adults living in Stevenage, North Hertfordshire and adjoining parts of Mid Bedfordshire with advanced cancer, motor neurone disease or other terminal illness.

GHHC also provides support and care to the families and friends of patients.

GHHC provides:

  1. Inpatient Care: The ten bedded Inpatient Unit provides consultant led specialist palliative care (the bed numbers have temporarily dropped to six, secondary to the effects of the Covid-19 pandemic and staffing levels).

  2. Home Care: Hospice at Home nurses provide hands-on care in the patient’s home. Ten Continuing Health Care fast track Community beds.

  3. Hawthorne Centre: Specialist day services, palliative rehabilitation, living well, outpatient care and dropin services.

  4. Family Support: A range of services including psychological support, bereavement counselling, carer support, spiritual care and advice for patients’ families. Children’s and Young Person’s Bereavement Service.

  5. Education: GHHC provides an education programme including mandatory training for all staff and volunteers. It provides a range of specialist education sessions that are open to all health and social care professionals. The organisation supports placements and training for junior staff in all relevant fields. Individual staff members contribute to the training of student nurses, medical students, GP trainees, specialist registrars and other professionals undertaking training in other fields e.g. paramedics.

  6. Volunteers all complete an induction course and mandatory training appropriate to their area of work.

  7. Telephone Advice: A specialist palliative care 24/7 telephone advice line.

  8. Community Engagement: Volunteers support all areas of the hospice; Compassionate Neighbours - community volunteers offer friendship through 1-1 matches or via Wellbeing Hubs and schools and colleges outreach to engage with young people about palliative and end of life care and the work of the Hospice.

Our vision

Our vision is for everyone in our community with life-limiting illnesses to have equal access to excellent specialist palliative and end of life care.

Our mission

Across the communities of Stevenage, North Herts and the surrounding towns and villages of Bedfordshire and Cambridgeshire, Garden House Hospice Care supports personalised and compassionate palliative and end of life care for those in need following a diagnosis of life limiting illness.

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GARDEN HOUSE HOSPICE CARE)

TRUSTEES’ REPORT

FOR THE YEAR ENDED 31 MARCH 2021

GHHC’s objectives are to:

The principal activities of the Trading Company are as general merchants and traders. The Trading Company provides an essential revenue stream for GHHC. Their Directors have set out a strategy that aims to increase the Company’s contribution to GHHC year-on-year. This strategy is articulated in the Company’s annual report.

During the year, GHHC:

http://www.nhs.uk/aboutNHSChoices/professionals/healthandcareprofessionals/quality-accounts/

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GARDEN HOUSE HOSPICE CARE

TRUSTEES’ REPORT

FOR THE YEAR ENDED 31 MARCH 2021

Garden House Hospice Care Clinical Activity

The Trustees know that Garden House Hospice Care is respected both for the quality and nature of the care that it delivers and the fair and honest trading of the Trading Company through its shops. The following comments from patients’ families affirms for us that we can be justly proud of the work of all involved:

The Hawthorne centre offered a safe and caring opportunity to socialise and partake in a much loved hobby. The short stay in the inpatient unit finally gave mum the pain relief she so badly needed and the reassurance I needed. Thank you.

The personal care my husband received during his last days with Palliative care was so good, all carers were caring, kind and very understanding of his needs. I could not have managed on my own towards the end of his life without their help. I cannot praise them enough. I feel very lucky that they entered our lives when most needed. It's a wonderful service provided to all who need them.

The clinical work of GHHC, the quality of the services it delivers, and the professional competence and capability of staff are measured and monitored in several ways:

  1. By the Care Quality Commission (CQC) through its system of unannounced inspections and the publication of the results of such inspections.

  2. By the Clinical Commissioning Groups (CCG) with whom GHHC has contracts through the contracts system as well as periodic quality inspection.

  3. Through the revalidation process for doctors and nurses and compulsory continuing professional education and training for professional staff.

  4. By the Hospice Care and Clinical Governance Committee continuing to monitor the clinical work of GHHC.

  5. By undertaking clinical audits using national audit tools designed specifically for hospices by Hospice UK.

  6. Through incident reporting, monitoring and shared learning.

  7. By the Trustees making announced visits to service providers in GHHC, with the outcome of such visits being formally reported to the full Board.

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GARDEN HOUSE HOSPICE CARE

TRUSTEES’ REPORT

FOR THE YEAR ENDED 31 MARCH 2021

  1. By the Trustees receiving regular Patient Services Reports covering all aspects of patient care.

  2. By GHHC preparing an annual Quality Account, for publication on the NHS Choices website.

East and North Herts Clinical Commissioning Group’s Response to the Quality Account provided by Garden House Hospice Care, Hertfordshire

East and North Herts CCG (ENHCCG) has reviewed the information provided by Garden House Hospice Care (GHHC) and we believe this is a true reflection of performance during 2020/21 based on the information submitted during the year as part of the on-going quality monitoring process.

The Quality Priorities set for 2021/22 continue to focus on the 3 year strategy launched in 2019 – Everybody; Excellence; Empower and Educate. This is the final year of the strategy.

The Quality Account sets out achievement for 2020/21. This year saw the Hospice working under challenging and difficult circumstances due to the ongoing Covid -19 Pandemic. The hospice worked hard to ensure that services were adapted to meet the needs of our residents. This included 3 frailty nurse posts to ensure that residents in care homes that required expert, palliative care had their needs met. The educational team also assisted with ensuring the staff had the tools to cope with the emotional and practical needs of the residents in care homes as well as the wider community. They continue to provide debriefing sessions to staff that have been affected by the Pandemic. The hospice increased the number of available beds in the Inpatient Unit and community services during both waves 1 and 2 enabling more of the residents of Hertfordshire to benefit from their care.

An increased focus on incident management enables the Hospice to be proactive rather than reactive to trends and themes noted. The collaboration between Isabel and Garden House Hospice during the Pandemic has also been of great benefit to our community. Several of the priorities for the next year are building on the previous 2 years’ work of the 3-year strategy. This includes a focus on sepsis and other early warning signs, blood tests for anaemia management, and introducing GAS – Goal Attainment Scales on the IPU. All these innovations will benefit the patients that use the service.

The Hospice is also undertaking work to evaluate the support given to patients and families during the Covid19 Pandemic to see what worked well. This includes a survey of the Virtual Support methods utilised. The Hospice will work with their patients and families to review their experiences and move the service forward. During 2021/22 the CCG looks forward to building on the positive relationships already developed with the hospice to ensure open dialogue and continued quality improvement for the population of Hertfordshire as well as supporting the continued sharing of good practice and innovation with partners involved in End of Life Care provision.

Sharn Elton Managing Director East and North Herts CCG May 2021

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GARDEN HOUSE HOSPICE CARE

TRUSTEES’ REPORT

FOR THE YEAR ENDED 31 MARCH 2021

Progress Report against the Strategic Business Plan 2019 - 2022

For 2020/21 we set the following strategic objectives and the progress we have made is as follows.

Everybody

Excellence Excellence

Safe, effective, caring, responsive and well-led services

Effective, efficient and innovative use of resources

High standards of governance reflected in good strategic and operational decision making
Responded and adapted services, to ensure that our patients and their families are at the heart of
everything we do.
Systems are in place to manage and monitor the prevention and control of infection (IP&C). IP&C policies
reviewed and updated in line with Government UK Covid-19 guidance. ENH Trust IP&C Senior Nurse audit
January 2021. Covid-19 Clinical services Action plan.
Secured supply and training of staff in the use of personal protective equipment.
Provided CQC evidence of compliance with CQC Hospice Transition Regulation Framework.
Safelysustained restricted visitingof loved ones topatients on the IPU.

9

Empower

10

Educate

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GARDEN HOUSE HOSPICE CARE

TRUSTEES’ REPORT

FOR THE YEAR ENDED 31 MARCH 2021

Strategic Objectives for 2021-2022

The Board of Trustees have agreed the following strategic objectives for 2021-22

Everybody Everybody Everybody
Equity of access to care
Care coordination
Giving everyone a voice in the shaping of Garden House Hospice Care
To have a team of staff and volunteers whose members are engaged with the purpose of GHHC, enjoy their
work and have the opportunity to shape GHHC for the future.
To reward and recognise those within GHHC and community for the benefit they provide to the organisation.
To work in partnership with Herts Community Trust to provide the North Herts Palliative Care Referral
Centre.
To identify activities specifically focused on helping people from ‘hard to reach’ groups to access our
services.
To continue to explore and identify activities that can be delivered to patients virtually.
To develop a GHHC Community Engagement Strategy.
To deliver an education-focused ‘Enterprise Initiative’ targeted at Secondary School students.
To developand implement stewardship plans and supporterjourneys for all fundraisingaudiences.
Excellence
Safe, effective, caring, responsive and well-led services
Effective, efficient and innovative use of resources
High standards of governance reflected in good strategic and operational decision making
To have a strong Human Resource and Education and Training offer for GHHC.
To have a Community Engagement team who deliver for the community.
To have the best team of staff and volunteers to serve GHHC’s community.
To collaborate with the Clinical Commissioning Group and providers to support the Integrated Care System.
To further develop the financial budgeting and forecasting process to make it more robust.
To improve and increase the use of GHHC’s brand and align messages and communications.
To ensure that in its work the Board is guided by the principles, key outcomes and recommended practices
within the CharityGovernance Code.
Empower
Reach and support patients and their families / carers earlier
Enable people to live fully
A community who is supported and prepared to care
To continue to increase public awareness of the full range of clinical services provided by GHHC.
To promote the wellbeing of staff and volunteers.
To implement self-referral and triage to Hawthorne Centre Services.
To ensure access to person-centred assessment for carers.
To evaluate the impact of the GHHC’s Equality and Diversity policy and strive to develop a Board which is
representative of the diverse communityGHHC serves.

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GARDEN HOUSE HOSPICE CARE

TRUSTEES’ REPORT

FOR THE YEAR ENDED 31 MARCH 2021

_________________

Educate

Ethical fundraising at Garden House Hospice Care – our promise

GHHC exists to provide specialist palliative care . Delivering our vital care to those living with cancer and other life-limiting illnesses in Stevenage, North Hertfordshire and adjoining areas of Mid Bedfordshire is only possible because of the generosity and enthusiasm of our supporters.

Our promise to our supporters is to fundraise and communicate in an honest and transparent way. We aim to ensure that everyone who chooses to offer their support to GHHC - whether by making a donation or by giving their time to take part in events, online and digital actions or to simply share our message - has a positive and rewarding experience with us and understands that their support is very much valued.

In order for us to raise the funds needed to provide vital end of life care in Stevenage, North Hertfordshire and adjoining areas of Mid Bedfordshire fundraising is carried out by our staff, volunteers and third-party supporters. In the case of the lottery only, we use a company “Local Hospice Lottery” to generate additional income through lottery sales.

We do not solicit donations by ‘cold calling’ by telephone or door-to-door collections, and we do not share personal information with any third-party organisations. We do not pressure supporters to make donations and we will always take care to avoid contacting and asking vulnerable people for donations.

We will not solicit or accept donations from companies or individuals who participate in activities which could cause detriment to the charity’s reputation or work.

In any cases where we may have contractual arrangements in place with agents, we take care to set the standards and obligations that must be met when fundraising on behalf of GHHC. We work closely with these partners to maintain the high standards that we, and the public, expect. This means ensuring that practices and policies are in place and closely adhered to.

GHHC is a member of the Institute of Fundraising and complies with the Fundraising Regulator. Alongside our high standards, we follow their and our own codes of practice to ensure that our fundraising meets the highest standards and supporters have the best possible experience. GHHC complies with the Data Protection Act and the Information Commissioners’ guides and codes. Last year, we did not receive any complaints to the Fundraising Department.

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GARDEN HOUSE HOSPICE CARE

TRUSTEES’ REPORT

FOR THE YEAR ENDED 31 MARCH 2021

Financial Review

Income was received from the following sources:

For the year ended 31 March 2021, total income increased by 36% to £7.69 million. Income from NHS funding increased during the year to £2.04 million due to additional work undertaken during the pandemic. NHSE funding of £1.47 million was made 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 COVID19 situation, and to provide bed capacity and community support from November 2020 to March 2021 for the same purpose.

Despite the challenges faced by the public during the pandemic, their generous support continued, through legacies, donations, and sales in the trading company’s shops, resulting in increased giving. NHS East & North Hertfordshire and NHS Bedfordshire provided 27% of the funding required by GHHC. Legacy income was higher than in the previous year at £0.73 million.

Expenditure shown analysed by activity comprises:

Total expenditure decreased by 5% this year: spending on charitable activities fell by 3% and spending on income generation fell by 8% due to very few fundraising events being held.

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GARDEN HOUSE HOSPICE CARE

TRUSTEES’ REPORT

FOR THE YEAR ENDED 31 MARCH 2021

The net result for the year was a surplus of £2,496,772, compared to a deficit of £(194,561) in the previous year. This surplus was due to the receipt of Covid-19 government grants for the provision of additional bed capacity during the pandemic, and to a net gain on investments caused by the stock market recovery following the crash in March 2020. It must be remembered that investment values can fluctuate and cannot be depended on to fund the activities of GHHC.

GHHC continues to need the help of our supporters to provide services in the medium to long-term otherwise the charity will have insufficient income to cover its ongoing costs.

GHHC does not have medium or long-term pension liabilities arising from obligations to a defined benefit pension scheme.

Reserves

All charities are required to consider their level of reserves to ensure sustainability. GHHC provides a range of critical health services upon which our local community depends. These services are funded by fluctuating income streams; the existence of reserves ensures that services can be delivered continuously in the event of a short-term reduction in income.

The Charity Commission does not make a specific recommendation on the level of reserves to be held by an individual charity but requires, as minimum good practice, that Trustees:

GHHC has defined its reserves policy with reference to:

The analysis resulted in the decision of the Board of Trustees that a minimum of 6 months of operating costs must be held in reserves to ensure the sustainable operation of services.

The required level of reserves is reviewed annually when considering budgets for the following year. The Finance and General Purposes Committee considers whether an additional amount, in percentage terms, will need to be held over and above the 6 months minimum and recommends this to the Board as part of agreeing the budget.

In certain circumstances, the Board may decide to hold funds that have been designated for a particular purpose by the Trustees. This is reviewed on an annual basis by the Board of Trustees. Any designation of funds for specific purposes or income generation is done in conjunction with GHHC’s investment policy.

At 31 March, reserves held by Garden House Hospice Care were:


Restricted reserves
Designated reserves
Free reserves
Total reserves		 2021
£

173,612
6,182,455
4,825,698
11,181,765		 2020
£
147,368
6,080,964
2,456,661
8,684,993

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GARDEN HOUSE HOSPICE CARE

TRUSTEES’ REPORT

FOR THE YEAR ENDED 31 MARCH 2021

_________________

Restricted reserves represent the sums donated to GHHC in respect of specific projects or spending plans. Designated reserves represent the value of GHHC’s buildings and contents. Only free reserves are available for use at the discretion of the GHHC’s Board of Trustees.

GHHC’s reserves policy requires that free reserves should not fall to less than 6 months’ operating costs, excluding costs relating to retail activities. At 31 March 2021, 6 months of operating costs, excluding trading costs, represented £2,096,083. GHHC’s reserves represent just under 14 months of operating costs. This increase in free reserves compared with 2020 was mainly due to Covid-19 grants received from government. The charity will use some of these reserves to fund one off projects such as improving digital strategy and piloting services in the Ernest Gardner Treatment Centre adjacent to the hospice.

Investment policy

GHHC invests the funds held in its free and restricted reserves accounts to gain a financial return. GHHC has appointed an investment manager, Smith and Williamson Investment Management Ltd, with the aim of generating an absolute return above the consumer price index.

The investment policy differentiates between:

The allocation of assets for investment is determined in relation to the Hospice’s cash flow projections.

During the year, the charity made gains on its investments of £269,758 (2020: losses of £93,976). This was due to the stock market recovery following the crash at the start of the Covid-19 pandemic in March 2020.

Principal Risks and Uncertainties

GHHC has a formal risk management process through which the Senior Leadership Team identifies the major risks to which the organisation may be exposed and has ranked these by likelihood and impact, culminating in risk control documents which are updated on a regular basis.

All significant risks, together with current mitigation actions, are reviewed regularly throughout the year by the Board of Trustees and committees of the Board. The Trustees are satisfied that systems have been developed and are in place to mitigate identified risks to an acceptable level.

All staff and volunteers are required to train to ensure that they are familiar with the operating systems of the Hospice and the risks of the activities in which they are involved.

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GARDEN HOUSE HOSPICE CARE

TRUSTEES’ REPORT

FOR THE YEAR ENDED 31 MARCH 2021

_________________

The principal risks and uncertainties identified by the charity are as follows:

Risk identified Action taken to mitigate the risk
A significant fall
in voluntary
income
Future Covid-19
restrictions
reducing income		 Income is monitored closely. Comprehensive management accounts are presented to
Finance and General Purposes Committee six times a year and then to each meeting of
the Board of Trustees (at least 6 meetings per calendar year) with monthly and year-
to-date figures. Similar considerations apply in the case of the Trading Company where
management accounts are offered to each meeting of the Board of the Trading
Company (also at least 6 meetings per year).
Progress of key fundraising events is reported by the Director of Income Generation to
Trustees on a regular basis.
Close control of expenditure in both GHHC and the Trading Company is the other side
of the equation. The importance of an adequate level of reserves is crucial and the
reserves policy is noted elsewhere.
Based on extensive experience during the 2020/21 financial year, cashflow forecasts
will be produced to reflect various scenarios, which may arise should the Government
reintroduce any further restrictions due to the Coronavirus pandemic.
These forecasts will be closely monitored by the Finance & General Purposes
Committee.
Unsafe or poor
clinical practice		 There are policies in place to ensure the recording and investigation of incidents in
clinical areas. All clinical incidents are reviewed at the Health & Safety Meeting with
monthly reporting and review of quality metrics at the Clinical Team Leaders meeting.
Incidents which require a change of practice are presented at the Hospice Care and
Clinical Governance Committee. This is supplemented by having an education and
learning programme in place.
Adequate clinical
staff to ensure
safe clinical
practice		 Close monitoring of patient dependency and staff skills mix, and regular review of the
Hospice case load are in place. There is flexibility with bank staff who cover during
periods of holiday or sickness.

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GARDEN HOUSE HOSPICE CARE

TRUSTEES’ REPORT

FOR THE YEAR ENDED 31 MARCH 2021

Governing Document

Garden House Hospice Care is a company limited by guarantee incorporated on 25[th] July 1986 (Company Number 02040989, Registered Office Gillison Close, Letchworth Garden City, Herts SG6 1QU) and registered as a charity on 23[rd] September 1986 (Charity Number 295257). Its Memorandum and Articles of Association govern GHHC. In the event of GHHC being wound up, the members are required to contribute an amount of £1 each.

The Trustees comply with the objects of, and work within the scope of the powers set out in, the Memorandum of Association. The Trustees follow the seven principles of good governance as set out in the 2017 Good Governance Code for larger charities.

Public Benefit

The Trustees have paid due regard to the Charity Commission’s Public Benefit Guidance and complied with section 17 of the Charities Act 2011 in exercising their powers and duties.

They note that were it not for GHHC and its work, adult hospice care would not be available in Stevenage and North Hertfordshire.

At the time GHHC was established in 1986, its two founding principles were that all treatment and care would be offered to the public without discrimination – that is without regard for age, race, colour, religion, gender, sexual orientation or financial means of the patient – and that all treatment and care would be supplied free of charge.

The Trustees are proud to confirm that GHHC has not deviated from those principles.

Recruitment and Appointment of Trustees

Trustees are recruited by a professional interview process. The Board considers candidates for appointment as Trustees after being duly proposed usually by existing Trustees, associated professionals, or staff; or following advertisement. Trustees must be members of GHHC. The Trustees seek to ensure that all proposed Trustees enhance the existing committed and diverse body of Trustees, come from a variety of backgrounds with experience relevant to the work and management of GHHC, and can provide the necessary commitment before being elected .

New Trustees may be appointed (co-opted) by the existing Trustees, but this must be approved by GHHC membership at the first Annual General Meeting (AGM) following their initial appointment. Trustees seeking election at an AGM must be formally proposed and seconded by Members of GHHC.

The Articles of Association stipulate that one third of the Trustees must retire annually by rotation beginning with those Trustees who have been longest in office. Trustees retiring by rotation may offer themselves for re-election at the AGM.

Trustees’ Induction and Training

All potential Trustees undergo a period of induction during which they are shown all aspects of GHHC’s work, attend relevant meetings and identify with their area of particular interest or expertise.

Trustees must prove their eligibility for trusteeship (Fit and Proper Person Test), sign a formal declaration to that effect, and have a Disclosure and Barring Service check.

All existing and potential Trustees are expected to familiarise themselves with the Charity Commission Guidance CC3 “The Essential Trustee” and Companies House’s document “Life of a Company part 1; Annual requirements”. They have access to national training opportunities specifically for Trustees. Links with

18

TRUSTEES’ REPORT

GARDEN HOUSE HOSPICE CARE

FOR THE YEAR ENDED 31 MARCH 2021

_________________

Trustees from other hospices are fostered and opportunities for training within the wider hospice movement can be accessed as appropriate. All Trustees have easy access to all policy and report documents relating to the GHHC’s activities. Personal copies of key documents such as the Memorandum and Articles of Association are provided.

Organisational Structure

The Trustees meet for Board meetings at least six times throughout the year. There are also a similar number of meetings of two committees: Finance and General Purposes, Hospice Care and Clinical Governance; a subcommittee: Investment; and the Trading Board. The CEO and members of the Senior Leadership Team attend and provide reports for all meetings. Additional meetings are scheduled if/when necessary. Minutes of the previous meeting together with the agenda and relevant papers for the forthcoming meeting are circulated in advance. The Trustees individually represent the Board on several internal forums and are, increasingly linked to specific areas of the Hospice’s work. Three of the Trustees are also Directors of the Trading Company, Garden House Hospice Trading Limited.

A programme of announced visits by two Trustees to a particular area of GHHC’s work results in improved communication between the Board of Trustees and volunteers and staff. Each visit gives rise to an action plan which is discussed and monitored by the Board.

The Trustees establish the strategic plan and approve relevant policies. A scheme of delegation is in place whereby senior managers are responsible for the overall day-to-day management of the organisation and for ensuring that policies are adhered to and plans brought to fruition.

The Chief Executive is Susan Plummer. The Senior Leadership Team members at 31 March 2021 were:

Medical Director: Dr Sarah Bell
Director of Patient Services: Jayne Dingemans
Director of Income Generation: Carla Pilsworth
Director of Finance (Interim): Philip Mahan
People Director: Becky Turner
Head of Operations: Helen Clark

The members of the Senior Leadership Team attend the Trustees’ meetings but do not have voting rights. From time to time other members of staff, independent advisers, or experts in various fields are invited to attend meetings for specific purposes to support or facilitate the Trustees’ decisions.

The Senior Leadership team support 207 staff and up to 759 volunteers whose contribution is crucial to the success of the charitable work and fundraising. Donated services, in the form of voluntary help, are not reflected in the Statement of Financial Activities.

In normal times the volunteers support the work of GHHC by providing assistance as receptionists, serving light refreshments to patients and visitors, flower arranging, undertaking administrative tasks, working as Compassionate Neighbours, working within the Day Services and In-patient Unit, gardening, and providing transport for patients and fundraising. Volunteers also make a considerable contribution towards the work of the Trading Company as shop assistants and helping with the sorting and delivering of donations from the Distribution Centre.

GHHC is an equal opportunities employer.

GHHC is a member of Hospice UK which is an umbrella organisation. However, it does not impact on the operating policies of GHHC.

19

GARDEN HOUSE HOSPICE CARE

TRUSTEES’ REPORT

FOR THE YEAR ENDED 31 MARCH 2021

_________________

Pay Policy for senior staff

The Trustees consider that the Board of Trustees and the Senior Leadership Team comprise the key management personnel of the charity in charge of directing and controlling, running and operating the Charity on a day-to-day basis. All Trustees give of their time freely and no Trustee received remuneration in the year.

Details of Trustees’ expenses and related transactions and Senior Leadership Team salaries are disclosed in note 6 to the accounts. The pay of the Chief Executive and members of the Senior Leadership Team and all staff are reviewed annually and normally increased in accordance with average earnings to reflect a cost of living adjustment. In view of the nature of the charity, the Trustees benchmark remuneration against pay levels in other charities. The remuneration benchmark is the mid-point of the range paid for similar roles in similar charities of similar size.

Trustees

The Trustees who served during the year were:

Mr J Procter (Chairman) Mrs E C Cooke RIP (resigned 22[nd] February 2021) Mrs H Dodd Prof K Farrington Mr R Gochin (Treasurer) Mrs S Greenbank (resigned 15[th] February 2021) Dr J Machen Mrs D Morrish (resigned 1[st] March 2021) Mr S Mellish Mrs R Seviour (Vice Chair) Mr J D Silsby Sir T Wilson DL (Secretary)

In accordance with Article 39 of the Hospice Articles of Association the following retire by rotation at the Annual General Meeting:

Mr S Mellish Dr J Machen Sir T Wilson

Mr S Mellish, Dr J Machen and Sir T Wilson being eligible offer themselves for re-election.

Trustees’ Interest in the Shares of the Hospice

GHHC is a company limited by guarantee and not having a share capital, therefore the Trustees have no financial interest other than the extent of the limited guarantee as denoted in the Memorandum of Association of the Hospice.

Trustees’ Responsibilities

The Trustees (who are also the directors of GHHC for the purposes of company law) are responsible for preparing the Trustees’ Annual Report and Accounts in accordance with applicable law and regulations. Company law requires the Trustees to prepare accounts for each financial year. Under that law the Trustees have elected to prepare the accounts in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law).

20

GARDEN HOUSE HOSPICE CARE

TRUSTEES’ REPORT

FOR THE YEAR ENDED 31 MARCH 2021

Under company law, the Trustees must not approve the accounts unless satisfied that they give a true and fair view of the state of affairs of the charity and of the group and the incoming resources and application of resources, including the net income or expenditure of the group for the year.

In preparing those accounts, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity’s transactions and disclose with reasonable accuracy at any time the financial position of the charity and the group and enable them to ensure that the accounts comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the Trustees are aware:

Auditor

Haysmacintyre LLP, 10 Queen Street Place, London EC4R 1AG Appointed under section 487(2) of the Companies Act 2006

In approving this Trustees’ Report, the Trustees are also approving the Strategic Report of the company, in their capacity as company directors.

Approved by the Trustees on 8[th] November 2021 and signed on their behalf by:

Mr John Procter Chairman of Trustees

21

GARDEN HOUSE HOSPICE CARE

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF GARDEN HOUSE HOSPICE CARE

Opinion

We have audited the financial statements of Garden House Hospice Care for the year ended 31 March 2021 which comprise the Consolidated Statement of Financial Activities, the Group and Charity Balance Sheets, the Consolidated Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 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 financial statements section of our report. We are independent of the group 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 the group'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 trustees are responsible for the other information. The other information comprises the information included in the Chairman’s Report and in the Trustees’ Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

22

GARDEN HOUSE HOSPICE CARE

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF GARDEN HOUSE HOSPICE CARE

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees’ Report (which incorporates the strategic report and the directors’ report).

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

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Trustees’ Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

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 its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees’ Report (which incorporates the strategic report and the directors’ report).

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

23

GARDEN HOUSE HOSPICE CARE

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF GARDEN HOUSE HOSPICE CARE

Responsibilities of trustees for the financial statements

As explained more fully in the trustees’ responsibilities statement set out on pages 20 and 21, the trustees (who are also the directors of the 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

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

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

Based on our understanding of the group and the environment in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to health and social care and charity and company law applicable in England and Wales, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006 and the Charities Act 2011, and consider other factors such as sales tax and payroll tax.

We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to the improper recognition of revenue and management bias in accounting estimates. Audit procedures performed by the engagement team included:

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

24

GARDEN HOUSE HOSPICE CARE

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF GARDEN HOUSE HOSPICE CARE

Use of our report

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

Steven Harper (Senior Statutory Auditor) For and on behalf of Haysmacintyre LLP, Statutory Auditors 11 November 2021

10 Queen Street Place London EC4R 1AG

25

GARDEN HOUSE HOSPICE CARE

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (Incorporating an income and expenditure account)

FOR THE YEAR ENDED 31 MARCH 2021

Unrestricted Restricted Total Total
Funds funds 2021 2020
Note £ £ £ £
Income from:
Donations and legacies
Donations, legacies and grants 2 1,146,440 217,665 1,364,105 1,263,002
Charitable activities
NHS funding 3 2,041,479 - 2,041,479 1,914,705
Other trading activities
Shop income and fundraising 7 1,775,860 - 1,775,860 1,775,821
Fundraising events 872,040 - 872,040 584,255
Investments 4 45,949 - 45,949 4,569
Other income 196,597 1,396,799 1,593,396 99,380
---------------------- ------------------ --------------------- ---------------------
Total income 6,078,365 1,614,464 7,692,829 5,641,732
---------------------- ------------------ --------------------- ---------------------
Expenditure on:
Raising funds
Trading activities 5 1,277,026 - 1,277,026 1,262,453
Donations and grants 5 157,424 - 157,424 175,136
Fundraising 5 393,492 - 393,492 554,569
Charitable activities 5 2,038,343 1,599,530 3,637,873 3,750,159
---------------------- ----------------- --------------------- ---------------------
Total expenditure 3,866,285 1,599,530 5,465,815 5,742,317
---------------------- ----------------- --------------------- ---------------------
Net operating surplus/(loss) 2,212,080 14,934 2,227,014 (100,585)
Net gains/(losses) on investments 269,758 - 269,758 (93,976)
--------------------- ------------------ ----------------- -----------------
Net income/(expenditure) 2,481,838 14,934 2,496,772 (194,561)
Transfers between funds (11,309) 11,309 - -
--------------------- ------------------ ----------------- -----------------
Net movement in funds 2,470,529 26,243 2,496,772 (194,561)
Total funds brought forward 8,537,624 147,369 8,684,993 8,879,554
---------------------- ------------------ -------------------- --------------------
Total funds carried forward 20 11,008,153 173,612 11,181,765 8,684,993
============ ========== =========== ===========

The notes on pages 29 to 44 form part of these financial statements.

The Statement of Financial Activities includes all gains and losses in the year. All income and expenditure derive from continuing activities.

Full comparative figures for the year ended 31 March 2020 are shown in note 23.

26

GARDEN HOUSE HOSPICE CARE

COMPANY NUMBER: 02040989

CHARITY AND CONSOLIDATED BALANCE SHEETS

AS AT 31 MARCH 2021

Group Charity Charity
2021 2020 2021 2020
Note £ £ £ £
FIXED ASSETS
Tangible assets 9 6,182,455 6,080,964 6,039,350 5,942,277
Investments 10 1,751,593 1,447,191 1,751,693 1,447,291
--------------------- --------------------- ----------------------- -----------------------
7,934,048 7,528,155 7,791,043 7,389,568
--------------------- --------------------- ---------------------- ----------------------
CURRENT ASSETS
Stock 11 3,172 7,575 - -
Debtors 12 981,822 413,157 1,275,551 593,062
Cash at bank and in hand 2,693,027 1,074,806 2,338,467 926,391
--------------------- --------------------- --------------------- ---------------------
3,678,021 1,495,538 3,614,018 1,519,453
-------------------- -------------------- ------------------- -------------------
CREDITORS: amounts falling
due within one year 13 (430,304)
(338,700)		 (223,296) (224,028)
--------------------- --------------------- --------------------- ---------------------
NET CURRENT ASSETS 3,247,717 1,156,838 3,390,722 1,295,425
--------------------- --------------------- --------------------- ---------------------
NET ASSETS 22 11,181,765
8,684,993		 11,181,765 8,684,993
============
============		 =========== ===========
FUNDS OF THE CHARITY
Unrestricted funds
General 4,825,698 2,456,661 4,968,803 2,595,348
Designated 6,182,455 6,080,964 6,039,350 5,942,277
--------------------- --------------------- --------------------- ---------------------
11,008,153 8,537,625 11,008,153
 8,537,625
Restricted funds 173,612 147,368 173,612 147,368
---------------------- ---------------------- --------------------- ---------------------
20 11,181,765 8,684,993 11,181,765
 8,684,993
============ ============ =========== ===========

The unconsolidated surplus of GHHC was £2,496,772 (2020: £(194,561)).

The financial statements were approved and authorised for issue by the Board of Trustees on 8 November 2021 and were signed below on its behalf by:

Mr. John Procter Chairman of Trustees

The notes on pages 29 to 44 form part of these financial statements.

27

GARDEN HOUSE HOSPICE CARE

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 MARCH 2021

2021 2020
Note £ £
CASH PROVIDED BY / (USED IN) OPERATING ACTIVITIES 17 1,803,206 (56,817)
-------------------- --------------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Dividends, interest and rents from investments 370 1,982
Purchase of property, plant and equipment (185,355) (825,631)
---------------------- ----------------------
CASH PROVIDED BY / (USED IN) INVESTING ACTIVITIES (184,985) (823,649)
---------------------- ----------------------
INCREASE / (DECREASE) IN CASH AND CASH EQUIVALENTS 1,618,221 (880,466)
Cash and cash equivalents at the beginning of the year 1,074,806 1,955,272
----------------------- -----------------------
Cash and cash equivalents at the end of the year 18 2,693,027 1,074,806
============ ============

28

GARDEN HOUSE HOSPICE CARE

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

_________________

1. ACCOUNTING POLICIES

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

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) (Second Edition, effective 1 January 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Garden House Hospice Care meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s).

Preparation of accounts on a going concern basis

The trustees consider there are no material uncertainties about the Charity’s ability to continue as a going concern. Whilst Covid-19 may have an impact on future revenue, continual review of our financial position, reserves levels and future plans gives Trustees confidence the charity remains a going concern for the foreseeable future (being a period of at least twelve months from the date of approving these financial statements).

Critical accounting judgements and estimates

In preparing these financial statements, management has made judgements, estimates and assumptions that affect the application of the charities accounting policies and the reported assets, liabilities, income and expenditure and the disclosures made in the financial statements. 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. Specific judgements taken are included elsewhere within this note, including those over the depreciation rates utilised and the non-depreciation of the Garden House Hospice premises.

Group financial statements

The financial statements consolidate the results of the charity and its wholly owned subsidiary Garden House Hospice Trading on a line-by-line basis. A separate Statement of Financial Activities and Income and Expenditure Account for the charity has not been presented because the charity has taken advantage of the exemption afforded by section 408 of the Companies Act 2006.

Income recognition

All income is recognised in the financial statements once the charity has entitlement to the income, it is probable that the income will be received, and the amount of income receivable can be measured reliably.

Donations and legacies

Donations and legacies are included in the Statement of Financial Activities when there is entitlement, probability of receipt and the amount of income receivable can be measured reliably. Income tax recoverable on individual gifts and donations is included as part of the gift or donation.

29

GARDEN HOUSE HOSPICE CARE

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

_________________

Grants

Clinical commission groups’ grants are credited to the Statement of Financial Activities in the year in which they are receivable. Grants related to specific deliverables are included once the performance has been considered completed. Where income is received in advance of performance its recognition is deferred and included in creditors. Where entitlement occurs before income is received the income is accrued.

Shop income, fund-raising sales and lottery income

Income from the commercial activities of operating shops, fund-raising sales and lottery are included in the year in which the group is entitled to receipt.

Investment income and rental income

Income from investments and from rental is included in the Statement of Financial Activities in the year in which it is receivable.

Fundraising

Income from fundraising events is included in the year during which the event took place.

Expenditure recognition

Expenditure, including any irrecoverable VAT, is included in the financial statements on an accruals basis and is recognised when there is a legal or constructive obligation to make payment to a third party.

Expenditure is allocated to the particular activity where the cost relates directly to that activity. Other costs are apportioned to areas of activity based on the staff time or usage attributable to each area.

Fixed assets

Fixed assets are stated at cost less accumulated depreciation and impairment losses. Depreciation is calculated to write off costs on a straight line basis as follows:

Furniture and fittings - Over five or ten years Office equipment - Over five years Motor vehicle - Over five years

The buildings are maintained as a matter of policy, by a programme of repair such that the residual values of the buildings taken as a whole are at least equal to the book value. This policy is regularly reviewed by the trustees who are satisfied it remains appropriate given the rebuild costs which would be required, and taking into account the service potential of the building (i.e. it continues to be used for charitable activities and therefore brings significant benefit). Having regard to this it is the opinion of the Trustees that depreciation of any such property as required by the Companies Act 2006 and the accounting standards would be immaterial to the financial statements. Any permanent diminution in value of such buildings would be charged to the Statement of Financial Activities as appropriate.

Financial instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments, including trade and other debtors and creditors are initially recognised at transaction value and subsequently measured at their settlement value.

Investments

Investment in subsidiary

The investment in the subsidiary is stated at cost, less any provision for any permanent diminution in value.

30

GARDEN HOUSE HOSPICE CARE

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

_________________

Other investments

Investments are shown in the financial statements at market value, taken to be the bid price ruling at the balance sheet date. Gains and losses arising on disposals of investments are recognised in the Statement of Financial Activities. Unrealised gains and losses, upon restating investments to market values at the balance sheet date, are recognised in the Statement of Financial Activities.

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.

Stock

Stock is stated at the lower of cost and net realisable value. Items donated for resale are included in the financial statements when they are sold. The Trustees consider that the time and cost involved in valuing the donated goods at the time of donation and including them as stock at the year end, outweigh the benefit to the user of the accounts.

Pensions

The Charity operates and contributes to the following pension schemes:

Employees entitled to join the National Health Service Superannuation Pension Scheme are required to contribute a percentage of salary according to the scheme’s rules. Employees who join the Standard Life Pension Scheme are required to contribute a minimum of 3% of salary.

Other employee benefits

Short term benefits

Short term benefits including holiday pay are recognised as an expense in the period in which the service is received.

Employee termination benefits

Termination benefits are accounted for on an accrual basis and in line with FRS 102.

Leasing commitments

Rentals paid under operating leases are charged to income on a straight-line basis over the lease term.

Gifts in Kind

The Hospice receives donated services in the form of voluntary help. In line with section 6 of the Charities SORP (FRS 102) this is not reflected in the Statement of Financial Activities as the financial value of the contribution of volunteers is not quantifiable.

31

GARDEN HOUSE HOSPICE CARE

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

_________________

Fund accounting

Funds held by the Charity are:

Unrestricted general funds

These are funds which can be used in accordance with the charitable objects at the discretion of the Trustees.

Designated funds

These are funds set aside by the Trustees out of unrestricted general funds for specific future purposes or projects together with funds transferred from restricted funds when no restrictions are considered to remain.

Restricted funds

These are funds that can only be used for particular restricted purposes within the objects of GHHC. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Further explanations of the nature and purpose of each fund is included in Note 19.

2. DONATIONS AND LEGACIES

2. DONATIONS AND LEGACIES
2021 2020
£ £
Donations 408,713 495,698
Legacies 729,779 507,027
Charitable foundations 225,613 260,277
---------------------- ---------------------
1,364,105 1,263,002
============ ===========
3. INCOME FROM CHARITABLE ACTIVITIES
2021 2020
£ £
NHS East and North Hertfordshire 1,976,859 1,857,795
NHS Bedfordshire 64,620 53,392
NHS Luton 3,518
-------------------- --------------------
2,041,479 1,914,705
=========== ===========
4. INVESTMENT INCOME
2021 2020
£ £
Bank interest received 370 1,982
Investment income 45,579 2,587
Dividends - -
---------------- ----------------
45,949 4,569
======== ========

32

GARDEN HOUSE HOSPICE CARE

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

_______________________

5. TOTAL EXPENDITURE 2021

Costs directly allocated to activities:
Staff costs
Cost of sales & services
Travel
Audit & accountancy
Support costs allocated to activities:
Hire of land, buildings & equipment
Premises costs
Communication
Legal & professional fees
Audit & accountancy
Depreciation
Bank charges
TOTAL EXPENDITURE 2020
Costs directly allocated to activities:
Staff costs
Cost of sales & services
Travel
Audit & accountancy
Support costs allocated to activities:
Hire of land, buildings & equipment
Premises costs
Communication
Legal & professional fees
Audit & accountancy
Depreciation
Bank charges		 Hospice Charitable Activities
Total
Commercial
activities
Donations &
Grants
Fundraising
Inpatient Care
Day Services
Hospice at
Home
762,795
126,605
317,443
2,087,280
213,480
787,337
4,294,940
60,856
14,506
34,405
136,323
7,768
(899)
252,959
15,696
-
868
182
4,166
25,257
46,169
1,650
547
1,366
8,614
873
3,144
16,194
279,144
485
1,211
7,637
774
2,788
292,039
74,306
8,147
20,366
128,399
13,016
46,867
291,101
20,420
1,791
4,478
28,231
2,862
10,304
68,086
13,133
2,936
7,339
46,267
4,690
16,888
91,253
1,650
547
1,366
8,614
873
3,144
16,194
38,082
1,702
4,255
26,827
2,719
9,792
83,377
9,294
158
395
2,493
253
910
13,503
1,277,026
157,424
393,492
2,480,867
251,474
905,532
5,465,815
700,943
138,394
353,213
2,134,288
269,350
817,389
4,413,577
76,083
20,691
148,676
123,521
20,022
-
388,993
21,833
-
1,854
748
17,021
24,117
65,573
975
189
597
2,678
363
998
5,800
313,269
696
2,206
9,888
1,342
3,684
331,085
83,111
8,413
26,641
119,448
16,204
44,505
298,322
18,291
2,627
8,318
37,296
5,060
13,896
85,488
8,479
2,120
6,712
30,092
4,082
11,212
62,697
975
189
597
2,678
363
998
5,800
30,154
1,704
5,396
24,192
3,282
9,014
73,742
8,340
113
359
1,610
218
600
11,240
1,262,453
175,136
554,569
2,486,439
337,307
926,413
5,742,317

Support costs include governance costs of £20,272 (2020: £11,195)

33

GARDEN HOUSE HOSPICE CARE

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

FOR THE YEAR ENDED 31 MARCH 2021 FOR THE YEAR ENDED 31 MARCH 2021 FOR THE YEAR ENDED 31 MARCH 2021 FOR THE YEAR ENDED 31 MARCH 2021
_________________
5.
TOTAL EXPENDITURE (continued)		 2021 2020
£ £
Included in total expenditure:
Depreciation – owned assets 83,379 73,742
Auditor’s remuneration:
Audit fees 13,245 11,600
Accountancy, taxation and other services 15,845 -
Operating lease charges:
Hire of equipment 12,895 17,816
Hire of land and buildings 279,144 313,269
========== ==========
**6. ** STAFF COSTS AND NUMBERS
2021 2020
£ £
Salaries and wages 3,751,688 3,774,522
Social security costs 284,568 303,604
Pension costs 250,977 267,736
-------------------- --------------------
4,287,233 4,345,862
=========== ===========
Included in the above are termination payments of £0 (2020: £10,000)
Number
Number
Charity and group:
The average number of employees analysed by function:
Income generation 14 15
Retail 52 50
Clinical 91 93
Administration and other activities 50 49
--------- ---------
207 207
===== =====
The number of employees whose emoluments as defined for taxation
purposes amounted to over £60,000 in the year were as follows:
£60,001 - £70,000 2 1
£70,001 - £80,000 1 -
£80,001 - £90,000 2 2
£90,001 - £100,000 - 1
£100,001 - £110,000 1 -
-------------- --------------
6 4
======= ======

The key management personnel of the group are considered to be the Senior Leadership Team listed on page 1. The total employee benefits of the key management personnel of the Group were £574,794 (2020: £503,284).

The Trustees provide their services voluntarily and are not included in the above analysis. During the year, Trustees received expenses of £0 (2020: £644). The directors of the subsidiary undertaking provide their services voluntarily and are not included in the above analysis. The directors of the subsidiary undertaking had no expenses paid to them throughout the current or previous year.

34

GARDEN HOUSE HOSPICE CARE

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

_________________

7. SHOP INCOME, FUNDRAISING SALES, LOTTERY INCOME AND RELATED EXPENDITURE

GHHC Charitable Total GHHC Charitable Total
Trading 2021 Trading 2020
£ £ £ £ £ £
Shops and fundraising sales
Turnover from donated goods - 1,575,093 1,575,093 - 1,556,019 1,556,019
Retail gift aid - 31,279 31,279 - 71,363 71,363
Turnover from purchased goods - 24,290 24,290 - 42,756 42,756
---------------- -------------------- -------------------- ---------------- -------------------- --------------------
Shop and fundraising sales income - 1,630,662 1,630,662 - 1,670,138 1,670,138
---------------- ------------------- -------------------- ---------------- ------------------- --------------------
Cost of sales - 60,856 60,856 - 76,083 76,083
Management and admin expenses - 1,216,102 1,216,102 - 1,186,370 1,186,370
----------------- --------------------- --------------------- ----------------- --------------------- ---------------------
Shop expenditure - 1,276,958 1,276,958 - 1,262,453 1,262,453
---------------- -------------------- -------------------- ---------------- -------------------- --------------------
Lottery
Income from lottery 144,192 1,006 145,198 104,533 1,150 105,683
---------------- ----------------- ----------------- ---------------- ----------------- -----------------
Operating expenses - - - - - -
Management and admin expenses - 68 68 - - -
---------------- ---------------- ---------------- ---------------- ---------------- ----------------
Lottery expenditure - 68 68 - - -
---------------- ---------------- -------------- ---------------- --------------- --------------
Net income from shops and - 353,704 353,704 - 407,684 407,684
fundraising sales
Net income from lottery 144,192 938 145,130 104,533 1,150 105,683
----------------- ----------------- ---------------- ----------------- ----------------- ----------------
Net income from trading 144,192 354,642 498,834 104,533 408,834 513,367
========= ========= ========= ========= ========= =========

The charitable income from the sale of donated and purchased goods is through shops at various town locations throughout North Hertfordshire. The charitable income from the lottery was generated through a weekly lottery operated by Local Hospice Lottery Ltd.

8. RELATED PARTY TRANSACTIONS

Transactions between the parent charity and its subsidiary comprised:

a) Interest charged by the charity on the loan agreement in place of £4,600 (2020: £4,693) b) Donations collected by the subsidiary on behalf of the charity were £5,084 (2020: £86,099)

c) Salary and other costs recharged by the charity to the trading subsidiary of £659,411 (2020: £629,481)

Donations received from Trustees during the year were £4,813 (2020: £15,727). As set out in note 6, no Trustee received remuneration.

35

GARDEN HOUSE HOSPICE CARE

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

FOR THE YEAR ENDED 31 MARCH 2021 FOR THE YEAR ENDED 31 MARCH 2021 FOR THE YEAR ENDED 31 MARCH 2021 FOR THE YEAR ENDED 31 MARCH 2021 FOR THE YEAR ENDED 31 MARCH 2021 FOR THE YEAR ENDED 31 MARCH 2021 FOR THE YEAR ENDED 31 MARCH 2021
_________________
9. TANGIBLE FIXED ASSETS Land &
buildings Furniture,
Long Fixtures & Motor
Group Leasehold fittings Equipment vehicles Total
£ £ £ £ £
Cost
At 31 March 2020 5,804,172 383,046 65,823 45,618 6,298,659
Additions 99,447 35,029 33,128 17,750 185,354
Disposals - - - (24,368) (24,368)
---------------------- ----------------- ---------------- ---------------- ---------------------
At 31 March 2021 5,903,619 418,075 98,951 39,000 6,459,645
---------------------- ---------------- --------------- ---------------- ---------------------
Depreciation
At 31 March 2020 - 167,474 22,157 28,064 217,695
Provided during the year - 65,762 13,556 4,546 83,864
On disposals - - - (24,368) (24,368)
--------------------- ----------------- --------------- ---------------- -----------------
At 31 March 2021 - 233,236 35,713 8,242 277,191
--------------------- ---------------- --------------- --------------- -----------------
Net Book Value
At 31 March 2021 5,903,619 184,839 63,238 30,758 6,182,454
============ ========= ======= ======== ===========
At 31 March 2020 5,804,172 215,572 43,667 17,554 6,080,965
============ ========= ======= ======== ===========
Charity
Cost
At 31 March 2020 5,804,172 236,564 34,616 9,593 6,084,945
Additions 99,447 9,779 33,141 - 142,367
Disposals - - - (9,593) (9,593)
--------------------- ----------------- ---------------- ---------------- ---------------------
At 31 March 2021 5,903,619 246,343 67,757 - 6,217,719
--------------------- ---------------- --------------- ---------------- ---------------------
Depreciation
At 31 March 2020 - 124,489 8,586 9,593 142,668
Provided during the year - 35,920 9,375 - 45,295
Disposals - - - (9,593) (9,593)
-------------------- ---------------- --------------- ---------------- -------------------
At 31 March 2021 - 160,409 17,961 - 178,370
-------------------- ---------------- --------------- --------------- ------------------
Net Book Value
At 31 March 2021 5,903,619 85,934 49,797 - 6,039,350
============ ========= ========= ======== ============
At 31 March 2020 5,804,172 112,075 26,030 - 5,942,277
============ ========= ========= ======== ============

The long leasehold buildings represent the capitalised costs of converting the Letchworth Hospital into the Garden House Hospice, together with extensions and improvements carried out in later years.

36

GARDEN HOUSE HOSPICE CARE

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

FOR THE YEAR ENDED 31 MARCH 2021 FOR THE YEAR ENDED 31 MARCH 2021 FOR THE YEAR ENDED 31 MARCH 2021 FOR THE YEAR ENDED 31 MARCH 2021 FOR THE YEAR ENDED 31 MARCH 2021 FOR THE YEAR ENDED 31 MARCH 2021
_________________
10. FIXED ASSET INVESTMENTS Group Charity
2021 2020 2021 2020
£ £ £ £
Investment in subsidiary undertaking - - 100 100
Equities and pooled funds 1,751,593 1,447,191 1,751,593 1,447,191
---------------------- ---------------------- ---------------------- ----------------------
1,751,593 1,447,191 1,751,693 1,447,291
============ ============ =========== ===========

The wholly owned trading subsidiary, Garden House Hospice Trading Limited, which is incorporated in the United Kingdom, pays all its profits to the charity annually by gift aid.

The principal activities of Garden House Hospice Trading Limited are general merchants and traders.

The charity owns the entire issued share capital of 100 Ordinary Shares of £1 each.

2021 2020
£ £
Summary of investment
Shares at cost 100 100
====== ======
Extracts from the accounts of the subsidiary undertaking
Summary profit and loss account
Turnover
 1,631,668 1,671,287
Cost of sales and administrative expenses
 (1,276,958) (1,262,453)
Interest receivable less interest payable (4,648) (4,594)
---------------------- ----------------------
Profit on ordinary activities before taxation 350,062 404,240
Tax on profit of ordinary activities - -
-------------------- --------------------
Profit for the financial year 350,062 404,240
-------------------- --------------------
Amount covenanted to the Charity 350,062 404,240
=========== ===========
The assets and liabilities of the subsidiary undertaking were as follows:
Fixed assets 143,105 138,687
========== ==========
Current assets
 513,148 375,519
Creditors amounts falling due within one year (656,153) (414,106)
-------------------- --------------------
Net current assets / (liabilities) (143,005) (138,587)
-------------------- --------------------
Creditors amounts falling due after one year - -
-------------------- --------------------
Net assets 100 100
-------------------- --------------------
Aggregate share capital and reserves 100 100
========== ==========

37

GARDEN HOUSE HOSPICE CARE

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

FOR THE YEAR ENDED 31 MARCH 2021 FOR THE YEAR ENDED 31 MARCH 2021 FOR THE YEAR ENDED 31 MARCH 2021 FOR THE YEAR ENDED 31 MARCH 2021
_________________
10. FIXED ASSET INVESTMENTS (continued) 2021 2020
£ £
Investments
Market Value 1 April 1,447,191 1,550,038
Additions during the year - -
Net income reinvested 34,644 (8,871)
Unrealised investment gains /(losses) 269,758 (93,976)
-------------------- --------------------
Market Value at 31 March 2021 1,751,593 1,447,191
=========== ===========
Historic cost 31 March 2021 1,507,142 1,484,255
=========== ===========

As a result of the Covid-19 pandemic, there was a fall in the global investment markets towards the end of the 2019/20 financial year which was followed by a substantial rebound during the 2020/21 financial year. This resulted in an unrealised gain of £269,758 in 2020/21. Post-year end the investment markets continued to perform well.

The investments comprise a portfolio held with Smith & Williamson consisting of a mix of investment types.

Net income reinvested includes income of £34,715, from which management fees of £10,935 have been directly deducted; it also includes realised gains of £10,863. In the previous year £35,001 was incurred in realised losses.

11. STOCK Group Group Charity Charity
2021 2020 2021 2020
£ £ £ £
Goods for resale 3,172 7,575 - -
======== ======== ====== =======
12. DEBTORS Group Charity
2021 2020 2021 2020
£ £ £ £
Trade debtors 285,082 190,706 277,048 187,588
Amounts due from subsidiary undertaking - - 449,145 299,433
Other debtors 40,910 35,944 2,440 -
Prepayments and accrued legacy income 609,814 147,373 517,941 81,633
VAT recoverable 46,016 39,134 28,977 24,408
--------------------- ------------------ --------------------- ---------------------
981,822 413,157 1,275,551 593,062
=========== ========= =========== ===========

The amounts owed by the subsidiary undertaking include loans of £80,000 (2020: £80,000) which are unsecured and repayable on demand. Interest was charged on the amount at 5% above Base Rate from 1 February 2021, prior to that date interest was charged at 2% above Base Rate.

Amounts due from the subsidiary undertaking also include profits to be payable under Gift Aid. A deed of covenant is in place which requires the payment to be made.

38

GARDEN HOUSE HOSPICE CARE

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

FOR THE YEAR ENDED 31 MARCH 2021 FOR THE YEAR ENDED 31 MARCH 2021 FOR THE YEAR ENDED 31 MARCH 2021 FOR THE YEAR ENDED 31 MARCH 2021 FOR THE YEAR ENDED 31 MARCH 2021 FOR THE YEAR ENDED 31 MARCH 2021
_________________
13. CREDITORS: AMOUNTS FALLING DUE Group Charity
WITHIN ONE YEAR 2021 2020 2021 2020
£ £ £ £
Trade creditors 218,126 163,440 53,159 54,718
Accruals and deferred income 113,932 31,685 71,891 25,734
Other creditors 98,246 143,575 98,246 143,576
Corporation tax creditor - - - -
----------------- ----------------- ----------------- -----------------
430,304 338,700 223,296 224,028
========= ========= ========= =========

14. CAPITAL COMMITMENTS

The Trustees maintain a policy of continually enhancing the facilities offered to patients, families and their guests.

At 31 March 2021 capital commitments comprised:

15. PENSION COMMITMENTS

Garden House Hospice Care

GHHC operates and contributes to the following Pension Schemes:

The assets of the schemes are held separately from those of GHHC in independently administered funds.

Employees entitled to join the National Health Service Superannuation Pension Scheme are required to contribute as specified by the scheme rules. The annual commitment by GHHC under this scheme is for contributions of 14.3% of gross salary of those employees who are members of this scheme.

All other employees join the Standard Life Pension Scheme and contribute a minimum of 3% of salary. The annual commitment by GHHC under this scheme is for contributions of 5% of gross salary.

Subsidiary

The subsidiary undertaking operates and contributes to a defined contribution pension scheme for those employees who wish to participate. The assets of the scheme are held separately from those of the Company in an independently administered fund. All employees join the scheme and contribute a minimum of 3% of salary.

The estimated GHHC and Subsidiary commitment for contributions to both pension schemes in 2021/2022 is £270,000 (2020/2021: £270,000).

39

GARDEN HOUSE HOSPICE CARE

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

_________________

16. OTHER FINANCIAL COMMITMENTS

At 31 March GHHC and its subsidiary undertaking had minimum total commitments under noncancellable operating leases as set out below:

GHHC Subsidiary Undertaking
2021 2020 2021 2020
£ £ £ £
Operating leases which expire:
Within one year 12,104 11,819 277,457 276,044
Within two to five years 23,097 34,700 198,223 515,140
After more than five years - 215 - 2,849
------------------ ------------------ ------------------ ------------------
35,201 46,734 475,680 794,033
========== ========== ========== ==========

The Garden House Hospice Care premises are provided at a peppercorn rent. The lease on the premises expires in 2138.

17. RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASH 2021 2020
FROM OPERATING ACTIVITIES £ £
Net movement in funds for the year 2,496,772 (194,561)
Depreciation 83,864 73,742
Realised (gain)/loss on investments (10,863) 35,001
Unrealised loss/(gain) on investments (269,758) 93,976
Interest and dividends receivable (370) (1,982)
Investment income net of management fees (23,780) (26,130)
(Increase)/decrease in stock 4,403 (6,385)
Decrease/(increase) in debtors (568,665) 616,474
(Decrease)/increase in creditors 91,604 (646,952)
------------------ ------------------
Net cash from operating activities 1,803,206 (56,817)
========== ===========
18. ANALYSIS OF THE BALANCES OF CASH AND CASH 2021 2020
EQUIVALENTS AS SHOWN IN THE BALANCE SHEET £ £
Cash at bank and in hand 2,693,027 1,074,806
=========== ===========

19. FUNDS

UNRESTRICTED FUNDS

General

General unrestricted funds comprise the accumulated surpluses arising from the objectives of GHHC which may be used for its charitable purpose at the discretion of the Trustees.

Designated

Designated funds comprise accumulated surpluses where the GHHC trustees have decided to reserve funds for specific purposes. These sums are for fixed assets which benefit the charity.

40

GARDEN HOUSE HOSPICE CARE

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

19. FUNDS (CONTINUED)

RESTRICTED FUNDS

Restricted funds comprise the value of donations where the donor has requested a specific use for their donation, and where at the date of reporting, the sums have not yet been expended.

At 31 March 2021, restricted funds comprise sums restricted to pay for:

2021 2020
£ £
Assets for Patients’ use 4,442 3,853
Patient Services 31,860 53,451
The Hospice befriending project 86,285 57,620
Education 27,780 31,279
Other 6,519 1,165
Hospice UK Covid-19 Government
Grant 16,725 -
----------------- -----------------
173,611 147,367
========= =========

20. ANALYSIS OF MOVEMENT IN GROUP FUNDS

Balance Unrealised Balance
1 April Movement in Resources Investment 31 March
2020 Income Expenditure Transfer Gains 2021
£ £ £ £ £ £
Unrestricted funds
General 2,456,662 6,078,365 (3,866,285) (112,802) 269,758 4,825,698
Designated 6,080,962 - - 101,493 - 6,182,455
--------------------- -------------------- ------------------------ ------------------- ----------------- ---------------------
8,537,624 6,078,365 (3,866,285) (11,309) 269,758 11,008,153
--------------------- -------------------- ------------------------ ------------------
------------------		 ---------------------
Restricted funds
Fixed assets 3,853 31,554 (31,051) 85 - 4,441
Patient services 53,451 39,725 (72,541) 11,224 - 31,859
Befriending 57,620 139,613 (110,948) - - 86,285
Education 31,279 750 (4,249) - - 27,780
Other 1,165 6,024 (668) - - 6,521
Hospice UK Covid-19
Government Grant - 1,396,799 (1,380,073) - - 16,726
------------------ -------------------- ---------------------- ---------------- ----------------- ------------------
147,368 1,614,465 (1,599,530) 11,309 - 173,612
------------------ -------------------- ----------------------- --------------- ------------------ ------------------
Total 8,684,992 7,692,830 (5,465,815) -
269,758		 11,181,765
=========== =========== ============= ======== =========== ===========

Transfers between funds predominantly reflect fixed assets purchased with designated funds where the restriction is extinguished on purchase of the asset. The asset is therefore an unrestricted asset.

41

GARDEN HOUSE HOSPICE CARE

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

_________________

21. ANALYSIS OF MOVEMENT IN GROUP FUNDS - YEAR ENDED 31 MARCH 2020

Balance Unrealised Balance
1 April Movement in Resources Investment 31 March
2019 Income Expenditure Transfer Gains 2020
£ £ £ £ £ £
Unrestricted funds
General 3,129,634 5,348,392 (5,119,550) (807,838) (93,976) 2,456,662
Designated 5,329,074 - - 751,888 - 6,080,962
--------------------- -------------------- ------------------------ ------------------- ----------------- ---------------------
8,458,708 5,348,392 (5,119,550) (55,950) (93,976) 8,537,624
--------------------- -------------------- ------------------------ ------------------
------------------		 ---------------------
Restricted funds
Fixed assets 287,156 109,400 (392,703) - - 3,853
Patient services 93,568 64,997 (107,299) 2,185 - 53,451
Befriending 1,000 108,501 (80,087) 28,206 - 57,620
Education 38,050 5,500 (37,707) 25,436 - 31,279
Other 1,071 4,942 (4,971) 123 - 1,165
------------------ -------------------- ---------------------- ---------------- ----------------- ------------------
420,845 293,340 (622,767) 55,950 - 147,368
------------------ -------------------- ----------------------- --------------- ------------------ ------------------
Total 8,879,553 5,641,732 (5,742,317) - (93,976) 8,684,992
=========== =========== ============= ======== =========== ===========

42

GARDEN HOUSE HOSPICE CARE

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

_____________________

22. NET ASSETS BETWEEN FUNDS Unrestricted Designated Restricted Total Unrestricted Designated Restricted Total
Funds Funds Funds 2021 Funds Funds Funds 2020
£ £ £ £ £ £ £ £
FIXED ASSETS
Long leasehold land and buildings - 5,903,619 - 5,903,619 - 5,804,172 - 5,804,172
Furniture, fixtures and fittings - 184,839 - 187,839 - 215,571 - 215,571
Equipment - 63,239 - 63,239 - 43,666 - 43,666
Motor vehicles - 30,758 - 30,758 - 17,554 - 17,554
Investments 1,751,593 - - 1,751,593 1,447,191 - - 1,447,191
--------------------- --------------------- -------------- --------------------- --------------------- --------------------- -------------- ---------------------
1,751,593 6,182,455 - 7,934,048 1,447,191 6,080,963 - 7,528,154
-------------------- -------------------- -------------- --------------------- -------------------- -------------------- -------------- ---------------------
CURRENT ASSETS
Stocks 3,172 - - 3,172 7,575 - - 7,575
Debtors 981,822 - - 981,822 413,157 - - 413,157
Cash at bank and in hand 2,519,415 - 173,612 2,693,027 927,438 - 147,368 1,074,806
--------------------- --------------- ---------------- --------------------- --------------------- --------------- ---------------- ---------------------
3,504,409 - 173,612 3,678,021 1,348,170 - 147,368 1,495,538
--------------------- --------------- --------------- -------------------- --------------------- --------------- --------------- --------------------
CREDITORS
Amounts falling due within one year 430,304 - - 430,304 338,700 - - 338,700
--------------------- --------------- ----------------- --------------------- --------------------- --------------- ----------------- ---------------------
NET CURRENT ASSETS 3,074,105 - 173,612 3,247,717 1,009,470 - 147,368 1,156,838
--------------------- --------------- ----------------- -------------------- --------------------- --------------- ----------------- --------------------
TOTAL ASSETS LESS CURRENT
LIABILITIES AT 31 MARCH 4,825,698 6,182,455 173,612 11,181,765 2,456,661 6,080,963 147,638 8,684,992
============ =========== ======== =========== ============ =========== ======== ===========

43

GARDEN HOUSE HOSPICE CARE

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

_________________

__________

23. COMPARATIVE GROUP STATEMENT OF FINANCIAL ACTIVITIES - 31 MARCH 2020

Unrestricted Restricted Total
Funds funds 2020
Note £ £ £
Income from:
Donations and legacies
Donations, legacies and grants 2 969,662 293,340 1,263,002
Charitable activities
NHS funding 3 1,914,705 - 1,914,705
Other trading activities
Shop income and fundraising 7 1,775,821 - 1,775,821
Fundraising events 584,255 - 584,255
Investments 4 4,569 - 4,569
Other income 99,380 - 99,380
---------------------- ------------------ ---------------------
Total income 5,348,392 293,340 5,641,732
---------------------- ------------------ ---------------------
Expenditure on:
Raising funds
Trading activities 5 1,262,453 - 1,262,453
Donations and grants 5 175,136 - 175,136
Fundraising 5 554,569 - 554,569
Charitable activities 5 3,127,392 622,767 3,750,159
---------------------- ----------------- ---------------------
Total expenditure 5,119,550 622,767 5,742,317
---------------------- ----------------- ---------------------
Net operating (loss)/surplus 228,842 (329,427) (100,585)
Net (losses)/gains on investments (93,976) - (93,976)
--------------------- ------------------ -----------------
Net (expenditure) / income 134,866 (329,427) (194,561)
Transfers between funds (55,950) 55,950 -
--------------------- ------------------ -----------------
Net movement in funds 78,916 (273,477) (194,561)
Total funds brought forward 8,458,708 420,846 8,879,554
---------------------- ------------------ --------------------
Total funds carried forward 20 8,537,624 147,368 8,684,992
============ ========== ===========

44