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2022-03-31-accounts

Annual report and financial statements For the year ended 31 March 2022

The Katharine House Hospice Trust (Company limited by guarantee) Company No. 02133391 Registered Charity No. 297099

Contents:

Page
Reference and Administrative Details 1
Report of the Board of Trustees (incorporating the Strategic Report) 3
Independent Auditor’s Report 10
Consolidated Statement of Financial Activities 14
Group and Charity Balance Sheet 15
Consolidated Statement of Cash Flows 16
Notes to the Financial Statements 17

The Katharine House Hospice Trust Annual Report and Financial Statements for the year ended 31 March 2022 Reference and Administrative Details

Reference and Administrative Details:

Registered name The Katharine House Hospice Trust The Katharine House Hospice Trust
Status The organisation is a Charitable Company limited by guarantee, incorporated on 20
May 1987 and registered as a Charity on 26 June 1987.
The Katharine House Hospice Trust is a Company limited by guarantee, having no
share capital, with all Trustees being members of the Company. The liability of the
members is limited to £1 in the event of the winding up of the Company.
Governing document The Company was established under Memorandum and Articles of Association which
established the objects and powers of the Charitable Company.
Company number 02133391
Charity number 297099
Registered office Aynho Road, Adderbury, Banbury OX17 3NL
Trustees Ms Lindsey Bowser
Ms Geraldine Burke
Sir Tim Jenner (chair)
Mr Richard Jones
Dr Christina Lloyd
Ms Carol Shaw (resigned 12 June 2021)
Ms Catherine Teideman
Ms Vicki Reay (resigned 15 July 2022)
Ms Holly Spiers (resigned 17 August 2022)
Mr Robert Cooke
MrSamuel Shadbolt (appointed 27 January 2022)
Senior Leadership Team Trevor Johnson Chief Executive (from 10 May 2021)
Angharad Orchard Chief Executive (to 10 May 2021)
Stephanie Lawless Head of Fundraising (from 15 November 2021)
Justine Williams Director of Fundraising and Communications
(to 18 August 2021)
Jeremy Childerstone Head of Finance (from 23 August 2021)
Chris Keeping Head of Finance (to 9 September 2021)
Karen Welsh Head of Marketing and Communication (from 1 Sep 2021)
Scott Bloomfield Head of Retail

1

The Katharine House Hospice Trust Annual Report and Financial Statements for the year ended 31 March 2022 Reference and Administrative Details

Advisors:

Principal Bankers Yorkshire Bank
7 Gold Street
Northampton
NN1 1EN
HSBC
17 Market Place
Banbury
OX16 5ED
NatWest
1 Town Hall Buildings
Bridge Street
Banbury
OX16 5JS
Investment Managers Investec Investment Wealth Limited
30 Gresham Street
London
EC2V 7QN
CCLA Investment Management Ltd
One Angel Lane
London
EC4R 3AB
`
Quilter Cheviot
Two Snowhill
Birmingham
B4 6GA
Solicitors Anthony Collins Solicitors
134 Edmund Street
Birmingham
B3 2ES
Auditors Critchleys Audit LLP
Beaver House
23-38 Hythe Bridge Street
Oxford
OX1 2EP

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The Katharine House Hospice Trust Annual Report and Financial Statements for the year ended 31 March 2022 Report of the Board of Trustees (incorporating the Strategic Report)

The Trustees present their annual report together with the audited financial statements for the year ended 31 March 2022. The format and content of the report and the financial statements comply with current statutory requirements, the Charity’s Memorandum and Articles of Association and the Charities Statement of Recommended Practice (FRS 102 second edition – October 2019) ‘Accounting and Reporting by Charities’.

Following on from the exceptional work in 2020/21 to set in place the collaborative arrangement with Oxford University Hospitals NHS Foundation Trust (OUH), 2021/22 has been a period of significant change for the Charity. We have transitioned to a new team working in a very different way. It has been gratifying that the clinical activities, now provided by OUH with funding from ourselves, have continued to the same high standard. The acid test - that any visitor to the Hospice, or user of our wider services would not notice any change - has been emphatically passed, for that, the Board of Trustees wish to again record their heartfelt thanks for the unstinting work that all involved have provided.

Much of the year has seen new teams settling in and establishing a firm focus on our two primary aims – to generate increased income and to act as a clear advocate in the provision and development of clinical services. The Board of Trustees has been substantially refreshed, while the Senior Leadership Team has 80% new members. We are already seeing significant increases in fundraising and retail income, and have established a healthy high level relationship with OUH to oversee delivery of clinical services – progress that is testament to the dedication and effectiveness of all involved.

Challenges have not disappeared. Covid continues to have an impact on our people and on income, but it is good to note that clinical work has not been significantly affected. The wider environment surrounding Care Services remains less than clear. The introduction of Integrated Care is welcome, but we have yet to see its impact on End of Life and Palliative Care. The wider Social Care landscape is equally opaque and we will continue to do all we can to influence change for the benefit of our community. Finally, the global economic impact of war in Ukraine has had an impact in the final part of the year with cost of living growth impacting on fundraising.

The Board of Trustees is constantly monitoring change and risk but remains optimistic that the Charity is firmly set on a path to financial sustainability within two years, and possesses sufficient reserves to bridge the decreasing funding gap in the interim. At the same time, we believe there are opportunities for material enhancements to the clinical services we fund, and we will continue to work towards their implementation.

1. Structure, governance, and management

Governing document and structure

The Company was registered in May 1987 (No. 02133391) with the governing instrument being its Memorandum and Articles of Association. The Articles state that the Board of Trustees shall have full discretion as to the admission of any person to membership of the association.

The Katharine House Hospice Trust is a company limited by guarantee, having no share capital, with all Trustees being Members of the company. The liability of the Members is limited to £1 in the event of the winding up of the company.

The Trustee Board

The Board of Trustees meets quarterly to ensure effective governance of the Charity. The Chief Executive is appointed by the Board and has delegated responsibility for the day-to-day management of the Charity with the support of the Senior Leadership Team.

The Board of Trustees is fully committed to the financial stewardship, quality, and safety of the Charity.

The Trustees are guided by an agreed scheme of corporate governance which sets out their responsibilities and those of the executive management team. Potential conflicts of interest are addressed in a Conflict of Interests Policy and a register of Trustees’ interests is maintained. Potential conflicts of interest are addressed at every meeting of the Trustees.

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The Katharine House Hospice Trust Annual Report and Financial Statements for the year ended 31 March 2022 Report of the Board of Trustees (incorporating the Strategic Report)

A Trustees’ skills matrix is used to determine the skills requirements when vacancies occur. A search is then undertaken, applicants are interviewed, and a vote of members is taken to decide upon appointment.

New Trustees undertake an induction programme designed to ensure their understanding of the Trustee role and their knowledge of the hospice and wider hospice sector. As well as a review of core documents the induction provides opportunities to meet with staff and volunteers across the hospice, and to observe or shadow parts of our service delivery.

No Trustee received any remuneration during the year nor any reimbursement of expenses (see note 9) to the financial statements.

Sub-committees

The Board is advised by a range of sub-committees. From 1 April 2021 the sub-committees are:

Organisation structure and key management personnel

Trustees are responsible for the strategic direction of the organisation. Day to day management is delegated to the Senior Leadership Team. The pay of the Leadership Team is set by Trustees in line with the pay policy of the Charity, which is in line with market rates for similar roles in the charity sector.

2. Objectives, values, and public benefit statement

Objectives

We collaborate with Oxford University Hospitals NHS Foundation Trust (OUH) and other agencies to fund the provision of specialist palliative care for adults with life-limiting conditions across North Oxfordshire, South Northamptonshire, and South Warwickshire.

Whilst we fund care for people at end of life, we also fund care for the support of symptom management and pain relief throughout a person’s illness. Care is not just about managing the physical symptoms of disease; we know that people need emotional and spiritual support, and the team works to support people in these areas as well as helping them to access the practical support they need.

Care is offered throughout the local community. Whilst many patients come into the Hospice, care is provided for many more in their own homes, care homes or in hospital.

Our vision and strategic values

Our vision is to ensure that every day is the best day possible for patients and families affected by incurable illness in our local community.

Our strategic values are:

  1. Trust – To be trusted as a partner and as an advocate by those we work with, our community and supporters. To be trusted as we fundraise for the provision of advice and practical support on specialist palliative care across our catchment area.

We will:

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The Katharine House Hospice Trust Annual Report and Financial Statements for the year ended 31 March 2022 Report of the Board of Trustees (incorporating the Strategic Report)

2. Community – To be the key community representative in palliative care. To be the charity of choice for our Community – To be the key community representative in palliative care. To be the charity of choice for our
community.
We will:
Be visible and reach all people in our community.
Provide support on how to better access services, at all stages of illness, demonstrating the community
benefits KHH brings across our catchment area.
Enable our volunteers to fully understand the impact of their work and to expand our range of
volunteering opportunities.
Provide resources online and signpost to other organisations that can support our families.
3. Innovative – To utilise all resources, ensuring that we respond to fundraising opportunities and patient need
in the most impactful and innovative ways possible.
We will:
Develop new partnerships with supporters and use their technology to enable us to reach more people.
Re-evaluate our practices and processes regularly to ensure we communicate with our supporters in a
way that suits them.
Be innovative and respond to the ongoing impact of the pandemic with new fundraising initiatives and
ideas.
4. Accountable– To ensure that we communicate to our supporters the importance and the impact of their
donations.
We will:
Ensure our supporters understand how much our services cost and how their fundraising impacts our
beneficiaries.
Be vocal and clear on the benefits of the care that is provided.
5. Making Every Moment Matter – To enable our patients and families to make the most of life, by funding
services that support them. To communicate how to live with a palliative diagnosis and how we can support
that.
We will:
Tell our patients’ stories sensitively and in a way that allows others to feel that they can and should
engage with the service at an earlier stage of diagnosis.
Advocate for quality palliative care and service improvements in the hospice sector.
Help people make the most of the time they have left and create memories with loved ones.

Public benefit statement

The Trustees have referred to the Charities Act 2011 for guidance on public benefit when reviewing the aims and objectives of Katharine House Hospice and in planning its future activities and the OUH partnership, and consequently are able to confirm their belief that the Hospice’s activities are of public benefit and will continue to be in the future. Our activities and achievements in furtherance of the public benefit are set out below.

3. Grant Making and the provision of care and services provided by the hospice

Katharine House Hospice provides a grant to Oxford University Hospitals NHS Foundation Trust (OUH) to specifically fund the services below. The quality and provision of these services is monitored by Katharine House Hospice Trust against a set of performance criteria:

At the centre of the hospice philosophy is our belief in caring for the whole person, addressing the physical, psychological, social, and spiritual needs of our patients in equal balance to ensure they and their family are best supported. It recognises people as individuals and the multi-disciplinary team of specialist palliative care nurses, doctors and other professionals, work in collaboration with other health providers and volunteers to ensure the delivery of the right care for each patient and to support them in ways which reduce their symptoms, enhance quality of life, and help them to live as fully as possible with their illness.

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The Katharine House Hospice Trust Annual Report and Financial Statements for the year ended 31 March 2022 Report of the Board of Trustees (incorporating the Strategic Report)

Inpatient services

The inpatient ward at our hospice in Adderbury provides round the clock specialist care for people in a welcoming and safe environment and patients may be admitted for symptom control as well as end of life care.

Community services

Hospice community services enhance the care already available in the community meaning not everyone needs to visit the Hospice itself. Clinical Nurse Specialists are registered nurses who have specialised in palliative care. They give specialist advice and support to help manage patient’s symptoms as well as helping them and their family to meet their social, emotional, and spiritual needs.

Hospital services

We fund the support of patients with incurable illnesses who have been admitted to other OUH facilities. The hospice team of two specialist doctors and a Clinical Nurse Specialist work alongside hospital teams in an advisory capacity.

Living Well services

The aim of Living Well is to enhance the wellbeing of people affected by life-limiting illness. Wellbeing means different things to different people and so our aim is to offer a programme of varied support and activities within which we hope everyone will find something right for them.

The service is run by a multi-professional team including a nurse, health care assistant, chaplain, social worker, physiotherapist, lymphoedema specialist nurse and bereavement lead and is supported by a team of volunteers. Due to Covid many of these services have been suspended for part of the year.

Volunteers & Social investments

Our staff and volunteers are our most important asset. Without the skills, expertise, and dedication of our volunteers we wouldn’t be able to provide the care we do to patients and families throughout the year.

Our 269 regular volunteers make a huge contribution to our work. Working 62,140 hours in total, the work of our volunteers equates to approximately 32 full time staff. Were we to have to pay for the amazing work that they undertake then this would cost the charity approximately £1,029,000.

During 2022, we have seen significant growth in our supporter engagement as a result of running events that bring our community together and place the Hospice at the heart of our community.

Social investment is about investing in people. During the year we have invested in restructuring our team to bring new skills into the Charity. We also provide ongoing skills training - for example EPOS (Electronic Point of Sale) training for all of our retail staff. We have implemented a completely new staff mentoring and supportive management processes. In addition, we have established lone working and mental health support for our staff team.

4. Group Strategic Report

Activities, achievements, and performance. How did we do?

The charity continued to be impacted by COVID, both in its ability to fundraise and in a downturn in public engagement and willingness to take part in fundraising. As late as December, we were affected by a significant slowdown in relation to the Omicron wave. However, we still ran a successful Not the Midnight Walk in July, a Santa Fun Run, and were supported by RC Baker with a very successful Tractor Run in December. All of this activity helped the last quarter to show the start of a recovery in fundraising.

Fundraising and retail performance since the end of lockdown have exceeded our expectations.

During 2022 the charity has restructured the team to be fit to deliver the core fundraising activities. This long-term planning should generate success in subsequent years.

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The Katharine House Hospice Trust Annual Report and Financial Statements for the year ended 31 March 2022 Report of the Board of Trustees (incorporating the Strategic Report)

Fundraising disclosures under section 13 of the Charities Act 2016.

The fundraising approach taken by the charity in the year was to focus on recovery by maximising existing sources of revenue. At year end we were in the advanced stages of planning to obtain an enhanced licence from the Gambling Commission which will enable us to increase the scale of our lottery and raffles. During this work we realised that, due to administrative oversight, we had slightly exceeded the terms of our local authority licence. This has now been resolved.

In retail, we opened an e-commerce hub to ensure full advantage taken of this route. We have also installed Electronic Point of Sale equipment at all of our retail sites to enable growth. At the year-end we had established clear plans to refurbish our flagship unit in Banbury.

The Charity is a member of the Fundraising Regulator, The Charity Retail Association and The Institute of Fundraising.

Under the provisions of Section 13 of the Charities (Protection and Social Investment) Act 2016, Katharine House Hospice does not employ external fundraising agencies.

Katharine House Hospice works within the Fundraising code to ensure that vulnerable people are protected within all fundraising activities.

How did we do

During the course of the year the funding provided by Katharine House Hospice Trust enabled the care of the following numbers of patients and families.

All patients seen 815
IPU 172
CNS team 453
Living Well 60
Lymphoedema 112
Bereavement support patients 130

Financial review & significant events:

Katharine House Hospice has a three-year plan to achieve levels of income to sustainably support our aims and objectives. During the transition period any shortfall will be met from reserves and by transitional support from OUH.

As part of the transition process at year end, we received £650,000 of financial support grants from OUH. OUH also waived the Q4 grant payment from us for the provision of clinical services. These payments were primarily made because of uncertainties surrounding commissioning arrangements in 22/23 following the introduction of Integrated Care Boards and are not expected to be repeated.

Before revaluation of investments, the financial year ended with a surplus of £179k in unrestricted funds (2021, deficit £183k) and a gain of £227k in restricted funds (2021, gain £471k). After revaluation of investments, the net surplus for the year is £592k (2021, surplus £599k).

From 1 April 2022 our statutory funding has ceased as care is provided under the grant arrangements previously described. In addition, income from other sources has been materially affected by the exit from lockdown (as shown in the following table).

Note
Donations & legacies
2
Charitable activities (including statutory funding)
3
Other trading
4a
Investments
5
Business interruption claims
4b		 2022
2021
+/-%
£
£
1,104,537
999,480
10.5%
694,362
2,972,773
-76.6%
1,158,368
777,727
48.9%
70,815
81,328
-12.9%
-
88,951
n/a
3,028,082
4,920,259
-38.5%

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The Katharine House Hospice Trust Annual Report and Financial Statements for the year ended 31 March 2022 Report of the Board of Trustees (incorporating the Strategic Report)

Staff costs remain our key expenditure but have fallen dramatically due to the TUPE transfer of clinical staff to OUH. These costs now represent 34.0% of our annual expenditure.

All current staff are offered a group personal pension scheme administered by Aviva.

Investment Policy and Performance

In accordance with the Memorandum and Articles of Association, the Trustees have the authority to invest in such stocks, shares, investments, and property as they see fit. An agreed Investment Policy describes the Trustees’ investment aspirations which include:

The combined performance of our Investment Fund Managers showed a net capital gain (realised and unrealised) of £186k for the year (2021: gain £428k). Investment income for the year fell by £11k.

Key risks

The Charity has a risk management system to identify key risks that could affect the achievement of our objectives. These are considered by each sub-committee and by the Board and mitigation measures are identified, put into effect, and monitored. The methodology within the risk register has been revised to ensure key risks are quickly brought to the attention of the sub-committees and Board.

The trustees consider the key risk for the future to be the geopolitical and economic situation commonly referred to as “the cost-of-living crisis.” In common with the wider charity sector, this is already having an adverse impact on our fundraising activities and investments. These downward pressures are expected to continue until at least 31[st] March 2023. The situation is closely monitored by the Trustees.

Future plans

The Charity is an organisation that exists to provide support to the regional healthcare providers of palliative care. Our objectives are:

The restructure and establishment of clear direction in fundraising is key to funding the achievement of these objectives. In parallel, we are developing a more outward facing team and culture within the charity and updating our supporter communication material and channels.

5. Reserves policy

The Charity has developed a Reserves Policy that includes a realistic assessment of the impact of a sudden and dramatic reduction in income, and Trustees judge that the Charity needs to retain £2.3m of free reserves to satisfy this requirement falling to £2.0m after investment of £300k in fundraising activity.

As at 31 March 2022 the level of free reserves held was £4.079m (2021: 3.699m). A detailed breakdown of reserves by category is shown in notes 18 & 19.

Our three-year plan to achieve financial sustainability is on track but there will continue to be a deficit for the immediate future. In addition, the general uncertainty over the state of the national economy, and its impact on

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The Kalharine House Hospice Trust Annual Report and Financial Statements for the year ended 31 March 2022 Report of the Board of Trustees (incorporating the Strategic Report) fundraising acts'vities rrEan that shortfalls will have to be met from reserves. ￿en the Trustees consider the Hospice to be financially self-suffiryent a fvrther rewew of the level of reserves will be undertaken. 6. Statement of accounling and reporting responsibilities The Trustees are responsible for weparing a Tnjstees, Annual Report and financial stslements in accordance with applicable law and United Kingdom Accounts"ng Standards {Uniled Kingdom Generally Accepted Accounb"ng Practicesl. Company and Charity law requires the Trustees lo prepare financial statements for each fina￿la1 year which give a Irue and fair view of the slate of affairs of the Charity and the group and of the group's incoming resources and application of resources. including the group's •r￿￿e and expenditure for that year. In preparing those finan￿al statements, the Trustees are required to" select suitable accounting policies and then appty them consistently.. observe the methods and principles in the Chariltes SORP.. make judgements and eslimales that are reasonable and prudent. stale whether applicable accounting standards have been followed subject to any material departures disclosed and expL8ined in the financial statements. and", prepare the financial statements on a going concem basis unless il is inappropriale lo presume that the Charty will contsnue in operation. The Trustees afe responsible for keeping proper accounliftg records which disclose with reasonable accuracy al any lime the financial position of the Charity and to enable them lo ensure thal the financial slalemenls comply with the requirements of Ihe Compan￿$ Act 20(￿. They are also responsible lor safeguarding Ihe assets ol the Charity and hence for taking reasonable steps for the prevents'on and detection ol fraud and other irregularities. The Trustees are restKtnsible for the Maintenan￿ and integnty of the Corporate and financial information included on the Charitable Company's website. Legislation in the Ur)iled Kingdom governing the preparation and dissemination of financial ststemenls may differ from legislat￿n in otheriurisdictions. 7. Statement of disclosure of inforniation to auditors We confirm that, in so far as the Trustees afe aware.. there is no relevant audit infomiation of which the Charity's auditor is unaware., and the Trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to estsblish that the auditor is aware of that informaliors. The Directors & Trnslees report (including Strategic le￿t) is approve(l on t*haff of the Tnjslees by.. IS o(St%C-4 L￿1 Sir Tim Jenner Chair of Trustees Date-.

The Katharine House Hospi¢e Twst Annual Report and Financial Statements for the year ended 31 March 2022 Independent Auditor's report to the members of The Katharine House Hospi¢e Trust for the year ended 31 March 2022 Opinion We have audited the financial stalements of The Kalharine House Hospice Trust for the year ended 31 Mareh 2022 which eomprise the Con5011dat￿ Statemènt of Financi81 ActI￿￿"eS, the Group and Charty Balance Sheet. the Con501hlated Statement of Cash F1¢y￿S and ￿te5 lo the financial stalemenls. including a summary of stgnfficarrt acujunting [K)I￿les. The financk?I reporting Iramework thal has been arplied in their preparation is applicab￿ law and United KIN￿d￿ kcounts.ng Standards, including Financial ReFort4ng Standard 102.. The Financial Reporting Standard applicable in Ihe UK and Republic of Ireland (United Kingdom Generally Accepted Accounling Practice). In our cpinion, Ihe financial Stat￿ents= give a true and fair v￿V of the state ofthe group's and of the parent charitab npany's affairs as al 31 March 2022 and of tho group'$ incoming resourGes and 8ppli¢8lion of resources for the year then ended" have been propedy prepared in aCC￿dance with Uniied Kingdom Generalty Accepted Ae¢ounting Pract￿. have been prepared in accordance with the requirements of the Companies Acl 2006. Basls for opinion We conducted our audr( in accordance with Intemalional Slandards on Auditing {UlQ (ISAS {UKII and applicable law. Our ￿spOnsI￿.111ieS under those stsndards are fvrther described in the Auditorfs resp)nsibililies for the audi( of the financial stalements seclion of our reFX)rt. We are independent of the 9foLrp and parent charrtable company in acCOrdar￿ wilh the elhical requirements that are relevant lo our audit of Ihe financial slalements in the UK. includin9 the FRC'S Ethical Standard and we have fU￿ll￿d Ouf other ethical responsibilit￿S in accordance with these requirements. We believe that the audit e￿den￿ we have obtained 15 sufficipnt arKI appropriate to pwvide a basts lor our cpinion. Conclusions relating to going concern In auditing the financHI statements. we have wncluded that Ihe Directorfs use of the going concem basis of accounting in the preparatKJn of the financial slater￿n¢$ is approprie. Based on the work we have performed. we have not idenlified any material uncertaint￿5 relati￿ to events or conditions that, individually or collecbyely, may cast Sl9nificant doubt on The Kalharine House Hts¥•ice Trust's ability to continue as a going concern for a peritsd of al least 12 month5 from when the finanual statements are authorised for issue. Our re$pon$ibilitie$ and the responsibiliites of the Directo￿ wiu) respect to going concem are described in the re￿vant seclion5 of this reptyt. Olher Infornwtlon The other inlormation ttrnprises the infom)abon irKluded in the annual ￿POrt. including the Tiustees. report other than the financial statements and our 8udf(orfs report thereon. The Tnjstees are responsble for the olher infomation contained wilhin the annual ￿Port. Our cf>inion on the financial statements does nol cover the other information and, except to the extent othe￿ise expllcrt￿ stated in our report, we do nc4 express any form ol assuran￿ conclusion therecfj. Our responsibilty is to read the other infomiation and, in doing so, considerwhether the olher inforMat￿n is materially inccfflsi5tenl wilh the financial slateffnts or our knowledge obtsined in the course ol the audtt, or olheMi$e appear$ to be materially misstated. If we pdentify such material ths gives rise lo a material misslalerr£nl in the financial ststements themsew. 11. based M the wotk we have perfomied, we cO￿lUde that there is a malerk41 mi5Statement of this othei informalic>n. we are required to feF•Jrt that fact 10

The Katharine House Hospice Trust Anrbual Report and Financial Ststements for the year ended 31 March 2022 We have nothing to report in this regard. Opinion$ on other matters prescrfbed by the Companles Act 2006 In our opinion, based on the work undertaken in the Course of the audit the infomi¢ 9iven in the Trustees. report. which includes the Direclors, report and the Strateg￿ report prepa￿d for the purposes of c(xnpany law. for the financial year for wh￿h the financial statements are prepared is consistent the financial ststements,. and the Directors. report and the Strateg￿ report included Wbthin the Trustee5' report has been prepared in xcwdance w(th applicable legal requirements. Matters on vthich we arn required to report by exceptKin In the light of the knowtedgg and urtdotstanding of Ihe CL¥hpany and its envlronmenl obtained in the course of the audFI. we have nc4 trlentified material m￿￿tatements in the Diredor5' report induded wthin the Trustees. reporL We have nothing to reporf in respect ol the foll¢yMng matters in relalicx) to which the Charilies (Accounts and Reports) Regulations 2008 ￿uIre us to report lo you il. in wr opinion.. adequate and proper accounting recor(Is have not been kept. or retum5 ad￿uate lor our èudrt have not been received from branches nol Msiied by us,. or the financrdl StsI￿ents are nol in agreement with the accounting fecords arKI retums., CK certain disclosures of Trustees. remunwaion specified by law are not made,. OT we have not re￿1ved all the information and expLanations we require fty our audtl. Responsibilities of the Trustees As explained rrb)re ful￿ in the Trustees, responsknilrties state￿￿nt15et out on page 101. the Trustee5 (who are also the Directors of the group and parent ¢harilable company foi the purposes of company lawy are responsible for the preParat￿an of the financial statements and for being satisfied that Ihey gTve a true and fair view. and for such intsrnal control as the Trust9es delemiine is necessary lo enable the preparation of financRI statements Ihat are free from fflaterial missiaierr£rt wltherdue to fraud or error. In p￿ paring the financial statements. the Trustses are wnsible for assessing the company's abilty to continue a5 a going concem, di%elosing. as applicabk. matters related to going concern and using the goiro concem basis ol a￿oUThting unless the Trustee5 ei(her intend lo liquKJale the company or to cease operal)ns. or have no realistic altematrve to do so. Audltor's responsibil￿9$ for Ihg audit of th• financial sLm•nts We have been appointed as auditor under Section 144 of the Charrties Act 2011 and report in accordance with the Act and relevant regulati￿$ made or ￿Ing eff￿1 Ihereunder. Our objeclNes are to ctlain reasonable assuran￿ about whet￿r the financial statements a5 a whole are free from material mk$stato￿ftt, whelhgr due io fraud or error. and to issue an auditorf$ report that in¢ludgs our cpintyjn. Reasonable assurance is a hwjh level of assurance, but is not a guarantee that an audf( conducted in accordance with ISAS (UK) will aNvays detect a material misslatemgnl when it exists. Misstatements Can arise from Iraud ci error ar#J a￿ considered materiat rf. Individual￿ or in the aggregate, they could reasc￿abty be expected to Influen￿ the economic decisions of users taken on the basis ol these financkql Stslements. Irregul8rities, induding fraud, a￿ instances of non-complkqnce laws and reguLqlions. We deswJn procedures in line with (¥Jr respJnsibilitie5. ouuined above. to detect material mi5Staternents in respect of 11

The Katharine House H05pice Trust Annual Report and Financial Statements for the year ended 31 March 2022 irregularilies. Indudin9 fraud. The extent to wh￿h our prc¢e(ju￿S a￿ capable of detecting irwulèribes. including fraud ￿ detaI￿d belw. Our approach to wjentifying and assessiry Ihe rists of material misstatement in resw of irregu13ritie$, including ftaud and non3nise ￿n- ¢omplian¢e with applieabk and regulations: we identrfieA1 Ihe Laws and regulations applicable to the group and parent charitable company through dIS￿$s1On$ with Directorsrtrustees. and from our knNkdge and experience of the client's sector: we fcLused on speofK laws and regulations we considered may have a direct material eff￿t on the financial stalements or the operations of the group and parent charrtable company. we assessed the extent of complvance with the kn and regula￿nS identrfied above through making enquiries of management" and KIentif￿1 laws and wulaligns were communicated v4ithin the audit learn regulady and Ihe team remained alert lo in¥lances of non¢omplian¢e throughout the audf(. We a55e55ed the susceptibility of the group's and parent charitable company's financial stslements to material misstatement. induding oblaining ¥n urKlerslanding of how fraud might ¢¢¢ur. by.. making enquiries of management as lo %there they considered there was susceptibility to Iraud. their krthV￿￿9e of actual, suspected and alleyed fraud", conswjering the inlemal eontrols in place to mrtigate iisks of fraud and non- comp1k?￿e wth laws and rgJvlation5.' arKI To address the Nsk of fraud thr￿jgh mana9emenl bias and o¥erride of Controls. we: perforn￿d anatytical procedures to identify any unusual or unexpected reLgtionships,' tested joumal entries to identrfy unusual tr3nsaclions" assessed whetherjudgernent5 ar￿ a5sumplions rnade in determining the a¢counlin9 eslimales weo indicative of polentk21 bias: investtyed the rattonale behind signrficant or unusual tran5actNJns,' and In resportse lo the risk of irre9ularrties and non-cLryilkqnce vAth laws and regulalions. we deS￿ned prcKedures which included, but weTe r￿1 limited to" agreeing financial $L￿ernent disclosures to urKlerlying supp¢Jling documèntation" reading the minutes of ffleetin9$ ofthose charged wth govemance: enquiring of management as to actual 8nd potential liligation and claims.. There are inherent limitations in our audit prKedure5 de5cnl)ed aL*)ve. The ThK)ie iern(Iv&l that law5 and regulats"on$ are from financial liansactions. the less likely it is that we would become ￿are of non- compliance. Audibng 5tsndards also limit the audrt procedures required to bjentify ncnatys members, as a body, in accordance with in accordance with Chapter 3 of Part 16 ofthe Companies Act 2CIJ6. Our audit work has 12

The Katharine House HOSPI￿ Trust Annual Report and Financial Statements for the year ended 31 March 2022 been undertaken so Ihat we might stsle to the group's and pTht charitable CoMpan￿S members those matters we are required to stale to them in an auditorfs feport and lor no other purpose. To the fulbsl extenl permitted by law. we do not accept or assume ¥esponsibilty lo anyone olher Ihan the group and parent charitable ccynpany. and the group's and parent charilable company's members as a body. for our audit work, for this rewrt, or lor the opinh)ns we have formed. Robert KirtLand, Senhjr StatLrtory Auditor fc¢ and on behalf of Critchleys Audit LLP Statutory Auditors Beavei Huu5e 23- 38 Hylhe Bridge Street Oxford OX12EP 18 Octcber 2022 13

The Katharine House Hospice Trust Annual Report and Financial Statements for the year ended 31 March 2022 Consolidated Statement of Financial Activities (Including Consolidated Income and Expenditure account)

Note
Income from:
Donations and legacies
2
Charitable activities
3
Other trading activities
4a
Investments
5
Other
4b
Total income
Expenditure on:
Raising funds
6
Charitable activities
6&7
Total expenditure
6
Net income/ (expenditure)
before revaluation
Net gain/(loss) on investments
Loss on transfer of assets to
OUH
Net income / (expenditure)
for the year
Transfers between funds
Net movement of funds for
the year
Reconciliation of funds:
Balances brought
forward 31 March
18
Balances carried
forward 31 March
18		 2022
2021
Unrestricted
Restricted
Total
Unrestricted
Restricted
Total
£
£
£
£
£
£
1,103,412
1,125
1,104,537
971,095
28,385
999,480
444,362
250,000
694,362
2,388,702
584,071
2,972,773
1,158,368
-
1,158,368
777,727
-
777,727
70,815
-
70,815
81,328
-
81,328
-
-
-
88,951
-
88,951
2,776,957
251,125
3,028,082
4,307,803
612,456
4,920,259
(1,507,297)
(3,608)
(1,510,905)
(1,030,011)
-
(1,030,011)
(1,090,873)
(20,324)
(1,111,197)
(3,460,755)
(141,461)
(3,602,216)
(2,598,170)
(23,932)
(2,622,102)
(4,490,766)
(141,461)
(4,632,227)
178,787
227,193
405,980
(182,963)
470,995
288,032
185,804
-
185,804
427,890
-
427,890
-
-
-
(78,369)
(38,632)
(117,001)
364,591
227,193
591,784
166,558
432,363
598,921
-
-
-
-
-
-
364,591
227,193
591,784
166,558
432,363
598,921
5,389,833
625,875
6,015,708
5,223,275
193,512
5,416,787
5,754,424
853,068
6,607,492
5,389,833
625,875
6,015,708

The notes on pages 17 to 31 form part of these financial statements.

14

The Katharine House Hospice Trust Annual Report and Financial Statements for the year ended 31 March 2022 Group and Charity Balance Sheet The Group 2022 The Company 2022 2021 2021 Note Fixed assets: Intangible assets Tangible assets Investments 11 12 13 1,675,113 3,437,776 4.501 1.685.988 3.247.803 13 1,675,113 3,437,777 4,501 1,685,988 3,247.804 5.112.902 4,938.292 5.112.903 4,938.293 Current assets: Sloek- goods for resale Debtors Cash at bank and in hand 1.704 906.666 837,740 1.704 908,174 836,231 15 1.030.601 526.650 1,032,109 525,141 1.746,110 1.557.251 1.746,109 1,557.250 Llabilities: Creditors.. 2mounts falling due within one year 16 1251,520) (479.8351 1251.520) {479,8351 Net current assets 1.494,590 1.077,416 1,494.589 1,077,415 Total net assets 18 6,607,492 6.015.708 6.607.492 6,015.708 Funds: Restricted income fvnds 19 853.068 625,875 853.068 625,875 Unrestricted funds 19 5,754,424 5.389.833 5,754,424 5,389.833 Total funds 18 6,607,492 6.015.708 6,607,492 6,015.708 The notes on pages 17 to 31 form part of these finanaal statements. These financial statements were approved and authorised for issue by the 8oard of Trustees on IL&oka 2022 and were signed on its behaw by.. Sir Tim Jenner Chair of Trustees Company Registration NLsmber'. 02133391 15

The Katharine House Hospice Trust

Annual Report and Financial Statements for the year ended 31 March 2022 Consolidated Statement of Cash Flows

Note
Cash flows from operating
activities
Net income / (expenditure) for the
reporting period (as per the
Statement of Financial Activities)
Amortisation of intangible assets
8
Depreciation of fixed assets
8
Dividends, interest, and rent from
investments
5
(Profit)/loss on the disposal of fixed
assets
8
(Profit)/loss on the disposal of fixed
assets to OUH
(Increase)/decrease in stock
Decrease/(increase) in debtors
(Decrease)/increase in creditors
Net cash from/ (used in)
operating activities
Cash flows from investing
activities:
Interest received
5
Dividends received
5
Purchase of intangible fixed assets
Proceeds from sale of tangible fixed
assets
Purchase of tangible fixed assets
Proceeds from sale of investments
Purchase of investments
Net cash provided by / (used in)
investing activities
Change in cash and cash
equivalents in the year
Cash and cash equivalents at the
beginning of the year
Cash and cash equivalents at the
end of the year
Cash and cash equivalents are
held as follows:
Cash at bank and in hand
Cash held in investments
13
Cash and cash equivalents at the
end of the year		 2022
£
405,980
4,488
68,258
(70,815)
-
-
(1,704)
123,935
(228,315)
£
301,827
(1,822,254)
(1,520,427)
2,446,053		 2021
£
288,032
1,532
113,521
(81,328)
117,085
(117,001)
-
(287,854)
(297,788)
£
(263,801)
1,201,703
937,902
1,508,151
7,113
63,702
-
-
(57,383)
1,027,716
(2,863,402)		 26,070
55,258
-
3,166
(24,887)
1,723,075
(580,979)
925,626 2,446,053
837,740
87,886		 526,650
1,919,403
925,626 2,446,053

16

The Katharine House Hospice Trust Annual Report and Financial Statements for the year ended 31 March 2022 Notes to the Financial Statements

Notes to the financial statements for the year ended 31 March 2022

Statutory information

The Katherine House Hospice Trust Ltd is a private company limited by guarantee, registered in England and Wales, registration no 2133391. The registered office is Aynho Road, Adderbury, Banbury OX17 3NL.

Compliance with accounting standards

The format and content of the financial statements have been prepared in accordance with the Charities SORP (FRS 102), the Charities Act 2011, the Companies Act 2006 and FRS 102.

Public Benefit Entity

The Charity is a public benefit entity.

1. Summary of significant accounting policies

The principal accounting policies adopted in the preparation of these financial statements are set out below and have remained unchanged from the previous period.

(a) Going Concern, Basis of Preparation, and Presentation currency

The financial statements have been prepared on a going concern basis under the historical cost convention, modified by the inclusion of fixed asset investments at their market value.

At the time of approving the accounts, the Trustees have a reasonable expectation that Katharine House Hospice has adequate resources to continue in operational existence for the foreseeable future. The Trustees consider there are no material uncertainties about the Charity’s ability to continue and adopt the going concern basis of accounting in preparing the accounts.

The financial statements are prepared in £ sterling, rounded to the nearest £, which is the functional currency of the Company.

(b) Basis of preparation of group financial statements

These accounts are consolidated accounts. The group financial statements consolidate the financial statements of the Charitable Company and of its subsidiary undertaking, Katharine’s Cupboard Limited, made up to 31 March 2022. The Charity has adapted the Companies Act format of the financial statements to reflect the special nature of the Charity’s activities. No separate Statement of Financial Activities has been presented for the Charity alone as permitted by section 408 of the Companies Act 2006 and the Charities SoRP(FRS 102).

(c) Income recognition

All incoming resources are included in the Statement of Financial Activities when the Charity is legally entitled to the income, the amount can be quantified with reasonable accuracy, and it is probable that the income will be received. The following specific policies are applied to categories of income:

Donations are accounted for as received by the Charity.

Gifts in kind: Estimating the fair value of donated goods for resale is impractical because of the volume of low-value items received. Therefore, donated goods for resale are not recognised on receipt. Instead, the value to the Charity of the donated goods sold is recognised as income when sold. Other gifts in kind, including donated facilities and services, are recognised in income at their fair value.

Legacies are recognised at the earliest of either the Charity being notified of an impending distribution or when they are received and when they are quantifiable.

Shop income is recognised on a cash receipt basis.

17

The Katharine House Hospice Trust Annual Report and Financial Statements for the year ended 31 March 2022 Notes to the Financial Statements

Lottery income is recognised when allocated to the current week’s draw. Lottery funds received and not drawn before the balance sheet date are recorded as deferred income and included within creditors in the balance sheet. Raffle income is also recognised when the raffle is drawn.

The income from fund raising ventures is shown gross, with the associated costs included within fund raising costs.

Investment income is included when receivable. Realised and unrealised gains and losses are dealt with in the Statement of Financial Activities.

Grant income, including government grants, is recognised when receivable and conditions for receipt have been complied with. The Charity considers that where a term or condition simply restricts the use of a grant, this does not affect a Charity’s entitlement to the gift and recognition of income.

No amount is included in the financial statements for volunteer time in line with the SoRP(FRS 102).

(d) Expenditure Recognition

All expenditure is accounted for on an accruals basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered and is reported as irrecoverable VAT in the appropriate expense category. Expenditure is categorised under the following headings:

Expenditure on Charitable Activities comprises those costs incurred by the Charity in the delivery of specialist palliative care and associated services for patients with a terminal illness.

Costs of Raising Funds comprise costs incurred in encouraging people and organisations to contribute financially to the Charity’s work. This includes the cost of advertising for donations, the running of the lottery including prize money, costs associated with the running of the shops, and the staging of special fundraising events, and investment managers’ costs.

All costs are allocated between the expenditure categories of the Statement of Financial Activities on a basis designed to reflect the use of the resource. Costs relating to a particular activity are allocated directly to that activity, with remaining support costs (which include office costs, governance costs and administrative payroll costs) being allocated to a particular activity on an appropriate basis as set out in notes 6 and 7.

(e) Fixed Asset Investments

Fixed interest investments are held to maturity for the purposes of income generation and not capital appreciation; the Trustees consider it appropriate to show these at cost less amortisation of premium paid.

Listed Equities are stated at market value as at the balance sheet date. Realised and unrealised gains and losses on investments during the year are dealt with in the Statement of Financial Activities.

Cash held in investments is included in investments rather than cash at bank and in hand.

Net gain/ loss on investments includes both realised and unrealised gains/ losses on the revaluation/ sale of investments.

(f) Current Asset Investments

Investments held for resale are included in current assets.

(g) Intangible Assets

Intangible assets are amortised on a straight-line basis over their useful lives as follows:

Computer software 20%

In the Statement of Financial Activities the amortisation charge is allocated between expenditure on raising funds and Charitable activities.

18

The Katharine House Hospice Trust Annual Report and Financial Statements for the year ended 31 March 2022 Notes to the Financial Statements

(h) Tangible Fixed Assets

Tangible fixed assets are included in the financial statements at historical cost, less accumulated depreciation. Depreciation of tangible fixed assets is provided on a straight-line basis, calculated at annual rates estimated to write off each asset over the term of its useful life. During the year the Trustee’s considered it appropriate that some new items of IT equipment should be depreciated over 3 years. The depreciation rates applicable are:

Freehold land nil Freehold buildings 2% Leasehold property period of the lease Motor vehicles, medical, office & catering & computer equipment 10%, 20% and 33 1/3% Assets under construction nil

(i) Stock Any stocks of goods for resale are felt by the Trustees to be insignificant and are only carried at cost if purchased at the year end.

(j) Taxation

The Company is registered as a Charity and is not liable to corporation tax on its Charitable activities.

(k) Value Added Tax The Company and its trading subsidiary have a group registration for VAT purposes. The Group is partially exempt for the purposes of VAT.

(l) Pension costs

Retirement benefits are provided to employees by way of various pension schemes as set out in note 10 to the financial statements. Contributions payable to these pension schemes are charged in the Statement of Financial Activities in the period to which they relate. Any differences between the contributions payable in the year and those actually paid are included within creditors in the Balance Sheet. FRS 102 requires fixed payments amounts to be included on the Balance Sheet.

(m) Operating leases

Rentals payable under operating leases are charged in the Statement of Financial Activities on a straight-line basis over the term of the lease

(n) Fund Accounting

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Company and which have not been designated for other purposes.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors, funding providers or which have been raised by the Company for a particular purpose. The costs of raising and administering such funds are charged against the specific fund.

(o) Debtors

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

(p) Cash at bank and in hand

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

(q) Creditors and provisions

Creditors are recognised where the Company 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.

19

The Katharine House Hospice Trust Annual Report and Financial Statements for the year ended 31 March 2022 Notes to the Financial Statements

(r) Financial Instruments

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

2. Income from donations & legacies

2022
Unrestricted
Restricted
Total
£
£
£
Donations
731,728
1,125
732,853
Legacies
371,684
-
371,684
1,103,412
1,125
1,104,537
.Income from Charitable activities
2022
Unrestricted
Restricted
Total
£
£
£
Statutory NHS funding
-
-
-
Fees & Grants
444,362
250,000
694,362
Gifts in Kind
-
-
-
444,362
250,000
694,362		 2021
Unrestricted
Restricted
Total
£
£
£
880,512
28,385
908,897
90,583
-
90,583
971,095
28,385
999,480
2021
Unrestricted
Restricted
Total
£
£
£
2,204,548
535,000
2,739,548
184,154
-
184,154
-
49,071
49,071
2,388,702
584,071
2,972,773

3. Income from Charitable activities

Katharine House Hospice provides a grant to Oxford University Hospitals NHS Foundation Trust (OUH) to specifically fund provision of services. As part of the transfer of service provision to OUH, Oxfordshire Clinical Commissioning Group (CCG) agreed to share the risk with Katharine House Hospice Trust that fundraising activity alone would not cover the costs of grant payments to OUH (the risk share). During the year ended 31st March 2022, £400,000 of unrestricted income was received from the CCG to cover its share of risk for the year ended 31st March 2022 and buy out its remaining risk share for the year ended 31st March 2023. This payment was primarily made because of uncertainties over NHS commissioning arrangements in 2022/23 following the introduction of Integrated Care Boards.

During the year ended 31st March 2022, as a part of the transfer to Oxford University Hospitals NHS Foundation Trust, £250,000 of restricted income was received to cover future capital works and transition expenses (2021: £535,000). In addition, as part of the risk share negotiations OUH waived the quarter 4 grant payment of £350,000 to allow Katharine House Hospice Trust to manage fundraising risk in 2022/23 and, if sufficient, to build up further the funds available for repairs and maintenance in future years.

During the year ended 31[st] March 2021, the Company received gifts in kind in the form of donated services for a Specialist Registrar. An amount of £49,071 has been shown as incoming and expended resource with a net nil effect on the results of the Company.

20

The Katharine House Hospice Trust Annual Report and Financial Statements for the year ended 31 March 2022 Notes to the Financial Statements

4a. Income from other trading activities

Charity shop income
Lottery
Retail grant
Furlough grant
Other fundraising income
Other generated income
b. Other Income
Insurance claims		 Unrestricted
Restricted
2022
Total
£
£
£
743,894
-
743,894
173,868
-
173,868
24,751
-
24,751
2,477
-
2,477
213,378
-
213,378
-
-
-
1,158,368
-
1,158,368
2022
Unrestricted
Restricted
Total
£
£
£
-
-
-		 Unrestricted
Restricted
2021
Total
£
£
£
245,763
-
245,763
194,964
-
194,964
80,960
-
80,960
112,596
-
112,596
142,191
-
142,191
1,253
-
1,253
777,727
-
777,727
2021
Unrestricted
Restricted
Total
£
£
£
88,951
-
88,951

4b. Other Income

In 2021 this represents loss of profits from retail trading during the first government lockdown.

5. Income from investments

Dividends – Equities
Interest - Fixed Interest
Securities
Interest – Deposits		 2022
Unrestricted
Restricted
Total
£
£
£
63,702
-
63,702
7,113
-
7,113
-
-
-
70,815
-
70,815		 2021
Unrestricted
Restricted
Total
£
£
£
55,258
-
55,258
26,070
-
26,070
-
-
-
81,328
-
81,328

21

The Katharine House Hospice Trust Annual Report and Financial Statements for the year ended 31 March 2022 Notes to the Financial Statements

6. Total expenditure
Represented by:
Unrestricted
Restricted
2022 Total
Unrestricted
Restricted
2021 Total
£
£
£
£
£
£
Raising funds
1,507,297
3,608
1,510,905
1,030,011
-
1,030,011
Charitable activities
1,090,873
20,324
1,111,197
3,460,755
141,461
3,602,216
2,598,170
23,932
2,622,102
4,490,766
141,461
4,632,227
6. Total expenditure
-----------------Raising Funds-----------------
Basis of
Allocation
Charity
shops
Charity
lottery
Fund
Raising
Investment
income
Charitable
activities
2022
Total
2021
Total
Costs directly allocated
to Charitable activities
£
£
£
£
£
£
£
OUH Grant payments
Direct
-
-
-
-
1,050,000
1,050,000
-
OUH capital works
Direct
-
-
-
-
6,504
6,504
-
Staff costs
Direct
274,747
-
361,771
-
-
636,518
2,904,709
Rent & other shop costs
Direct
168,883
-
-
-
-
168,883
133,519
Merchandise costs
Direct
25,023
-
-
-
-
25,023
2,255
Staff training, recruitment &
welfare
Direct
2,337
-
22,229
-
-
24,566
19,633
Staff and patient travel
Direct
2,314
-
476
-
-
2,790
4,866
Waste removal
Direct
15,938
-
-
-
-
15,938
21,187
Lottery prizes & costs
Direct
-
85,064
-
-
-
85,064
88,578
Other fundraising costs
Direct
-
-
114,512
-
-
114,512
63,488
Irrecoverable VAT - in year
Direct
-
-
14,532
-
-
14,532
-
(Recoverable)/ Irrecoverable
VAT prior years
Direct
-
-
-
-
-
-
(26,362)
Investment manager costs
Direct
-
-
-
9,099
-
9,099
15,216
Repairs clinical equipment
Direct
-
-
-
-
-
-
18,765
Patient welfare
Direct
-
-
-
-
-
-
6,513
Medical consumables
Direct
-
-
-
-
-
-
122,511
Other costs
Direct
-
-
-
-
-
-
9,754
Depreciation
Direct
2,784
1,572
7,368
-
23,878
35,602
65,234
492,026
86,636
520,888
9,099
1,080,382
2,189,031
3,449,866
Support costs allocated
to other activities
Catering costs
Floor
-
-
-
-
-
-
141,575
Housekeeping costs
Floor
-
-
-
-
-
-
133,139
Administration staff costs
income
120,707
-
150,339
-
-
271,046
449,172
Admin & office expenses
income
2,329
-
2,900
-
-
5,229
9,808
Admin & office expenses
income
16,948
-
21,114
-
-
38,062
127,548
Utilities, services &
insurance
income
13,170
-
16,403
-
-
29,573
94,920
Repairs and maintenance
income
3,598
-
4,481
-
-
8,079
93,473
Governance
income
11,310
-
14,086
-
-
25,396
99,622
Irrecoverable VAT - in year
income
-
-
18,542
-
-
18,542
-
Recoverable VAT prior years income
-
-
-
-
-
(16,716)
Depreciation
income
791
-
5,538
-
30,815
37,144
49,820
Total expenditure 2022
660,879
86,636
754,291
9,099
1,111,197
2,622,102
4,632,227
Total expenditure 2021
508,114
89,952
416,729
15,216
3,602,216
4,632,227
4,632,227		 -----------------Raising Funds-----------------
Charity
shops
Charity
lottery
Fund
Raising
Investment
income
Charitable
activities
2022
Total
2021
Total
£
£
£
£
£
£
£
-
-
-
-
1,050,000
1,050,000
-
-
-
-
-
6,504
6,504
-
274,747
-
361,771
-
-
636,518
2,904,709
168,883
-
-
-
-
168,883
133,519
25,023
-
-
-
-
25,023
2,255
2,337
-
22,229
-
-
24,566
19,633
2,314
-
476
-
-
2,790
4,866
15,938
-
-
-
-
15,938
21,187
-
85,064
-
-
-
85,064
88,578
-
-
114,512
-
-
114,512
63,488
-
-
14,532
-
-
14,532
-
-
-
-
-
-
-
(26,362)
-
-
-
9,099
-
9,099
15,216
-
-
-
-
-
-
18,765
-
-
-
-
-
-
6,513
-
-
-
-
-
-
122,511
-
-
-
-
-
-
9,754
2,784
1,572
7,368
-
23,878
35,602
65,234
-
-
-
-
-
-
274,747
-
361,771
168,883
-
-
25,023
-
-
2,337
-
22,229
2,314
-
476
15,938
-
-
-
85,064
-
-
-
114,512
-
-
14,532
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2,784
1,572
7,368
492,026
86,636
520,888
-
-
-
-
-
-
120,707
-
150,339
2,329
-
2,900
16,948
-
21,114
13,170
-
16,403
3,598
-
4,481
11,310
-
14,086
-
-
18,542
-
-
-
791
-
5,538		 9,099
1,080,382
2,189,031
3,449,866
-
-
-
141,575
-
-
-
133,139
-
-
271,046
449,172
-
-
5,229
9,808
-
-
38,062
127,548
-
-
29,573
94,920
-
-
8,079
93,473
-
-
25,396
99,622
-
-
18,542
-
-
-
(16,716)
-
30,815
37,144
49,820
660,879
86,636
754,291		 9,099
1,111,197
2,622,102
4,632,227
508,114
89,952
416,729		 15,216
3,602,216
4,632,227
4,632,227
Unrestricted
Restricted
2021 Total
£
£
£
1,030,011
-
1,030,011
3,460,755
141,461
3,602,216
4,490,766
141,461
4,632,227

*Oxford University Hospitals NHS Foundation Trust

22

The Katharine House Hospice Trust Annual Report and Financial Statements for the year ended 31 March 2022 Notes to the Financial Statements

7. Expenditure on Charitable activities

Basis of
Allocation
(2021)
Costs directly allocated to
Charitable Activities:
OUH Grant payments
Direct
OUH capital works
Direct
Clinical Staff Costs
Direct
Clinical Staff Costs
Usage
Staff training, recruitment & welfare
Direct
Staff and patient travel
Direct
Waste removal
Direct
Repairs to clinical equipment
Direct
Patient welfare
Direct
Medical consumables
Direct
Other Charitable Activities costs
Direct
Irrecoverable VAT prior years
Direct
Depreciation
Direct
Support costs allocated:
Catering costs
Head
Housekeeping costs
Floor
Administration staff costs
Head
Administration and office expenses
Head
Administration and office expenses
w.t.e
Utilities, services, and insurance
Floor
Repairs and maintenance
Floor
Governance
Floor
Irrecoverable VAT - in year
Floor
Recoverable VAT prior years
Floor
Depreciation
Floor
Total expenditure
Charitable Expenditure by Service
OUH Grant Payments (all Services)
OUH capital works (all services)
In Patient Unit
Living Well
CNS Home Care
Hospital Liaison
Lymphoedema
Bereavement Service
Welfare & Education
Total expenditure (all Services)		 2022 Total
2021 Total
£
£
1,050,000
-
6,504
-
-
1,810,130
-
579,242
-
19,633
-
3,721
-
15,282
-
18,765
-
6,513
-
122,511
-
9,754
-
-
23,878
56,739
1,080,382
2,642,290
-
141,575
-
123,819
-
305,437
-
6,866
-
86,800
-
87,327
-
85,995
-
91,652
-
-
-
(15,380)
30,815
45,835
1,111,197
3,602,216
2022
2021
£
£
1,050,000
-
6,504
-
27,606
2,350,336
19,383
175,609
3,082
688,943
-
74,560
616
54,190
616
52,891
3,390
205,687
1,111,197
3,602,216

With effect from 1 April 2021, all the clinical services previously provided by Katharine House have been carried out by Oxford University Hospitals NHS Foundation Trust to the same high standards of care that were previously provided by Katharine House. Grants have been made to OUH totalling £1,050,000 for the purpose of providing

23

The Katharine House Hospice Trust Annual Report and Financial Statements for the year ended 31 March 2022 Notes to the Financial Statements

funding to facilitate the Trust in carrying out the services. As explained in note 3, OUH waived the quarter 4 grant payment.

8. Net income / (expenditure) for the year

This is stated after charging / (crediting):

This is stated after charging / (crediting):
2022 2021
£ £
Depreciation of fixed assets 68,258 113,521
Amortisation of intangible assets 4,488 1,532
(Profit) / loss on disposal of fixed assets - 117,085
Operating lease rentals:
Property 108,873 84,748
Other 2,059 -
Auditor's remuneration (excluding VAT):
Audit 9,100 8,000
Other - -

9. Staff costs and numbers

Staff costs were as follows:

2022 2021
£ £
Salaries and wages 741,068
33,075
59,221
57,939		 2,903,456
Redundancy and termination costs -
Social security costs 255,578
Pension costs 327,575
891,303 3,486,609

Redundancy and termination payments are accounted for in the period in which the payments were made. During the current financial year such payments amounted to £33,075 included a £3,000 ex gratia payment (2021: £nil) and were charged to unrestricted funds.

Staff numbers

The average number of employees, and full time equivalent (FTE) employees, employed by the Charity during the year was:

2022 2021 2022
2021
No.
No.
-
75
8
28
29
36
FTE FTE
Charitable activities - 45
18
21
Support activities 6
Raising funds 22
28 84 37
139

24

The Katharine House Hospice Trust Annual Report and Financial Statements for the year ended 31 March 2022 Notes to the Financial Statements

The number of employees whose total employee benefits (excluding employer pension costs) exceeded £60,000, for the reporting period fell within each band of £10,000 as follows:

2022 2021
No. No.
£60,000 - £69,999
£70,000 - £79,999
£80,000 - £89,999		 1 2
- 1
- 2

The key management personnel of the Trust comprise the Trustees, the Chief Executive Officer, and the Senior Leadership Team. The total employee benefits (including pension contributions and employer's national insurance) of the key management personnel were £289,884 (2021: £372,194).

The Charity Trustees were neither paid or received any other benefits from employment with the Trust or its subsidiary in the year (2021: £nil), neither were they reimbursed expenses during the year (2021: £nil). No Charity Trustee received payment for professional or other services supplied to the Charity (2021: £nil).

The role played by Volunteers is disclosed in the Trustees’ report (page 6)

10. Pension costs

The Charity currently operates a single pension scheme for the benefit of all employees (2021: two schemes). The assets of the pension schemes are held separately from those of the Charity in independently administered funds.

Aviva Pension Scheme – Defined Contribution Scheme

The current scheme operated by the Company, is administered by Aviva and is a group personal pension scheme with defined contribution rules. The scheme was set up in 2008 with both a flexible contribution rate from the employer and an opportunity for employees to contribute via a salary sacrifice arrangement which the Trustees felt fairly reflected a modern pension scheme for its employees. Since May 2014, this scheme has been used as the Company’s Auto Enrolment Scheme. Prior to 31 March 2021 this was also the default scheme for those who were not eligible to join the NHS scheme.

The Company’s contributions to the scheme in the current year are based on a contribution rate of up to 13% of pensionable pay (2021: up to 13% of pensionable pay). There is also an option to make contributions to the scheme through a salary sacrifice – the company contribution rate with salary sacrifice is up to 21%, based on a 7% salary sacrifice (2021: up to 21%, based on a 7% salary sacrifice).

The pension costs for the year ended 31 March 2022, as included in the Statement of Financial Activities, amounted to £57,939 (2021: £164,888). The balance owing to the scheme as at 31 March 2022 is £7,580 (2021: £18,362).

NHS Pension Scheme - Defined Benefit Scheme

Prior to the implementation of the partnership with OUH that led to the transfer of Katharine House’s clinical service to OUH, a number of the Company’s employees were eligible to join the National Health Service pension scheme. The scheme is a defined benefit multi-employer pension scheme administered for the benefit of NHS employees, General Practices and other bodies allowed under the direction of the Secretary of State. The Company is unable to identify its share of the underlying notional assets and liabilities of the scheme with any certainty and accordingly has accounted for the scheme, as permitted by FRS102, as if it were a defined contribution scheme.

The pension costs for the year ended 31 March 2022 as included in the Statement of Financial Activities, amounted to £ nil (2021: £162,687). The Company’s contributions to the scheme in the prior year were based on a contribution rate of 14.38% of pensionable pay with employees contributing between 5.6% and 13.5% of pensionable pay in accordance with NHS revised contribution rules.

The balance owing to the scheme as at 31 March 2022 is £ zero (2021: £24,204).

25

The Katharine House Hospice Trust Annual Report and Financial Statements for the year ended 31 March 2022 Notes to the Financial Statements

11. Fixed assets – Intangible (Group & Charity)

11. Fixed assets – Intangible (Group & Charity)
Cost
At 1 April 2021
Additions in year
Disposals in year
At 31 March 2022
Amortisation
At 1 April 2021
Charge for the year
Eliminated on disposal
At 31 March 2022
Net book value
At 31 March 2022
At 1 April 2021
All of the above assets are used for Charitable purposes.		 Computer
software
£
7,661
-
(7,390)
271
3,160
4,488
(7,390)
258
13
4,501		 Total
£
7,661
-
(7,390)
271
3,160
4,488
(7,390)
258
13
4,501

12. Fixed assets – Tangible (Group & Charity)

Cost
At 1 April 2021
Additions in year
Disposals in year
At 31 March 2022
Depreciation
At 1 April 2021
Charge for the year
Eliminated on disposal
At 31 March 2022
Net book value:
At 31 March 2022
At 1 April 2021		 Freehold
land and
buildings
£
2,831,171
-
-
2,831,171
1,170,198
56,223
-
1,226,421
1,604,750
1,660,973		 Leasehold
improvement
£
61,098
-
(26,796)
34,302
56,837
2,181
(26,796)
32,222
2,080
4,261		 Fixtures
and fittings
£
64,232
57,383
-
121,615
48,364
8,704
-
57,068
64,547
15,868		 Motor
vehicles
£
42,815
-
-
42,815
37,929
1,150
-
39,079
3,736
4,886		 Total
£
2,999,316
57,383
(26,796)
3,029,903
1,313,328
68,258
(26,796)
1,354,790
1,675,113
1,685,988

Land with a value of £20,000 (2021: £20,000) is included in Freehold land and buildings and is not depreciated. All of the above assets are used for Charitable purposes.

26

The Katharine House Hospice Trust Annual Report and Financial Statements for the year ended 31 March 2022 Notes to the Financial Statements

13. Investments

Fixed
Interest
£
Fair value at 1 April 2021
520,000
Additions
600,000
Disposals
(820,000)
Revaluation during the year
-

Fair value at 31 March 2022
300,000
Cash held in investments
Net book value at 31 March 2022
Fair value at 31 March 2021
520,000
Cash held in investments
Net book value at 31 March 2021		 Listed equities
at market
value
£
808,400
2,263,402
(107,784)
85,872
3,049,890
808,400		 Group total
£
1,328,400
2,863,402
(927,784)
85,872
3,349,890
87,886
3,437,776
1,328,400
1,919,403
3,247,803		 Unlisted
£
1
-
-
-
1
1		 Charity
total
£
1,328,401
2,863,402
(927,784)
85,872
3,349,891
87,886
3,437,777
1,328,401
1,919,403
3,247,804

The historical cost of Listed Equity Investments included above at market value is £3,007,985 (2021: £1,102,367).

14. Subsidiary undertaking

The Company owns the whole of the issued ordinary share capital of Katharine’s Cupboard Limited, a company registered in England with company number 06297831. The registered office address is East End, Adderbury, Banbury, Oxford, OX17 3NL. The company is non trading and will be closed in the year ended 31[st] March 2023.

The aggregate of the assets, liabilities and reserves was:

The aggregate of the assets, liabilities and reserves was:
Assets
Liabilities
Reserves		 2022
£
23,506
(23,505)
1		 2021
£
23,506
(23,505)
1

The amounts owed to the parent undertaking are shown in note 15.

15. Debtors

Trade debtors
Other debtors
Prepayments & accrued income
VAT recoverable
Amount owed by group undertaking		 The Group
2022
2021
£
£
695,326
550,549
26,060
16,147
174,870
335,968
10,410
127,937
-
-
906,666
1,030,601		 The Charity
2022
2021
£
£
695,326
550,549
26,060
16,147
174,870
335,968
10,410
127,937
1,508
1,508
908,174
1,032,109		 The Charity
2022
2021
£
£
695,326
550,549
26,060
16,147
174,870
335,968
10,410
127,937
1,508
1,508
908,174
1,032,109
1,032,109

27

The Katharine House Hospice Trust Annual Report and Financial Statements for the year ended 31 March 2022 Notes to the Financial Statements

16. Creditors: Amounts falling due within one year

Trade creditors
Taxation and social security
Other creditors
Accruals
Deferred income (note 17)		 The Group
2022
2021
£
£
79,903
68,191
16,784
61,857
7,580
42,856
45,303
196,215
101,950
110,716
251,520
479,835		 The Charity
2022
2021
£
£
79,903
68,191
16,784
61,857
7,580
42,856
45,303
196,215
101,950
110,716
251,520
479,835		 The Charity
2022
2021
£
£
79,903
68,191
16,784
61,857
7,580
42,856
45,303
196,215
101,950
110,716
251,520
479,835
479,835

17. Deferred Income – Group & Charity

Balance at the beginning of the year
Amount released to income in the year
Amount deferred in the year
Balance at the end of the year		 The Group
2022
2021
£
£
110,716
434,220
(19,129)
(372,337)
10,363
48,833
101,950
110,716		 The Charity
2022
2021
£
£
110,716
434,220
(19,129)
(372,337)
10,363
48,833
101,950
110,716

Lottery income received in advance is deferred to the date of the lottery draw. Raffle income is similarly deferred until the draw.

18 (a) Analysis of net assets between funds – current year

Intangible assets
Tangible assets
Investments
Net current assets
Net assets at 31 March 2022		 General
unrestricted
£
13
1,675,113
3,437,776
641,522
5,754,424		 Restricted
funds
£
-
-
-
853,068
853,068		 Total funds
£
13
1,675,113
3,437,776
1,494,590
6,607,492

18 (b) Analysis of net assets between funds - prior year

Intangible assets
Tangible assets
Investments
Net current assets
Net assets at 31 March 2021		 General
unrestricted
£
4,501
1,685,988
3,247,803
451,541
5,389,833		 Restricted
funds
£
-
-
-
625,875
625,875		 Total funds
£
4,501
1,685,988
3,247,803
1,077,416
6,015,708

28

The Katharine House Hospice Trust Annual Report and Financial Statements for the year ended 31 March 2022 Notes to the Financial Statements

19 (a) Movement on funds – current year

Restricted funds:
Hospice Companion
Patient Welfare
Chapel
Equipment
Projects
Grounds and Gardens
Intangible Funding
OUH Capital
Total restricted funds
Unrestricted funds:
General funds
Total funds		 As at 1
April 2021
£
14,011
-
622
15,069
58,679
2,494
-
535,000
625,875
5,389,833
6,015,708		 Income
£
-
1,125
-
-
-
-
-
250,000
251,125
2,776,957
3,028,082		 Expenditure
& Losses
£
-
(1,125)
-
(3,355)
(12,695)
(253)
-
(6,504)
(23,932)
(2,598,170)
(2,622,102)		 Transfers
and Gains
£
-
-
-
-
-
-
-
-
-
185,804
185,804		 As at 31
March 2022
£
14,011
-
622
11,714
45,984
2,241
-
778,496
853,068
5,754,424
6,607,492

19 (b) Movement on funds – prior year

Restricted funds:
Hospice Staffing
Hospice Companion
Patient Welfare
Chapel
Equipment
Projects
Grounds and Gardens
Intangible Funding
OUH Capital
Total restricted funds
Unrestricted funds:
General funds
Total funds		 As at 1
April 2020
£
24,937
25,500
287
1,152
59,443
75,000
7,193
-
-
193,512
5,223,275
5,416,787		 Income
£
10,150
-
1,000
-
13,495
-
3,740
49,071
535,000
612,456
4,307,804
4,920,260		 Expenditure
& Losses
£
(35,087)
(11,489)
(1,287)
(530)
(19,237)
(16,321)
(8,439)
(49,071)
-
(141,461)
(4,490,767)
(4,632,228)		 Transfers
and Gains
£
-
-
-
(38,632)
-
-
-
-
(38,632)
349,521
310,889		 As at 31
March 2021
£
-
14,011
-
622
15,069
58,679
2,494
-
535,000
625,875
5,389,833
6,015,708

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The Katharine House Hospice Trust Annual Report and Financial Statements for the year ended 31 March 2022 Notes to the Financial Statements

Fund Descriptions and policy

The full reserves policy is provided in the Trustees’ report. Overall, the Charity needs to retain £2.3m of free reserves to satisfy the full on-going reserves requirement. This will enable Katharine House Hospice Trust to manage short term losses of statutory or fundraising income and provide sufficient time to plan any changes required to future service delivery.

Restricted Funds:

Hospice Staffing Fund – This fund represents donations received with the specific request that they be used to defray the cost of Hospice staffing

Hospice Companion Fund – This fund represents donations received with the specific request that they be used to defray the cost of the Hospice companion service.

Patient Welfare Fund – This fund represents donations towards equipment and projects that enhance patient wellbeing and welfare. This includes Art Room supplies, massage and therapy supplies, musical instruments, games, and CDs.

Chapel Fund – This fund represents monies given to us for use by the chaplain in defraying certain expenses incurred in running of our chapel.

Equipment Fund – This fund is for donations given towards the purchase of new equipment.

Projects – This fund represents donations received towards the cost of projects.

Grounds & Gardens Fund - The fund represents donations towards the upkeep of our grounds and gardens, which help create an atmosphere of peace and tranquillity at the Hospice for all those who come to us.

Intangible Funds - The fund represents the provision of a Specialist Registrar (£49,071) by the Oxford University Hospitals NHS Foundation Trust . No direct charge is made to the Hospice for these services, but this treatment is felt to illustrate more fairly the costs involved in the provision of palliative care services by the Hospice.

Oxford University Hospital Fund – This fund represents income received from Oxford University Hospitals NHS Foundation Trust to cover future capital works and transition expenses.

Unrestricted Funds:

General Fund - This fund recognises the need to protect Hospice services and the high level of costs incurred by Katharine House alongside the challenges faced by all within the hospice sector of maintaining and building both statutory and fundraising income. This fund will continue to be treated as unrestricted funding, in line with the wider Charity sector.

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The Katharine House Hospice Trust Annual Report and Financial Statements for the year ended 31 March 2022 Notes to the Financial Statements

20. Operating lease commitments payable as a lessee

The Group’s total future minimum lease payments under non-cancellable operating leases was as follows:

Less than one year
One to five years
Over five years		 2022
£
110,813
249,108
16,114
376,035		 2021
£
88,333
194,746
52,833
335,912

21. Commitments including Grant Commitments

As at 31 March 2022, the Group had no capital commitments (2021: £nil).

On 31[st] March 2021 Katharine House Hospice Trust (KHH) entered into an agreement with Oxford University Hospitals NHS Trust (OUH), to transfer the provision of hospice and palliative care services currently provided by KHH to OUH. KHH agreed to fund OUH £1.4m each year for two years until 31[st] March 2023, funded from ongoing fundraising activities and reserves.

22. Contingent liabilities

As at 31 March 2022 the Group had no contingent liabilities (2021: £nil).

23. Related party transactions

As at 31 March 2022 the sum of £1,509 was owed by Katharine’s Cupboard Limited to The Katharine House Hospice Trust (2021: £1,509).

24. Parent Company/ Charity

The parent Charity’s gross income and the net result for the year was as follows:

2022 2021
£ £
Gross income 3,028,082 4,920,259
Result for the year 591,784 598,921

25. Taxation

The Charity is exempt from corporation tax as all its income is Charitable and applied for Charitable purposes. The Charity’s trading subsidiary, Katharine’s Cupboard Ltd, did not trade during the year.

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Katharine House Hospice Aynho Road, Adderbury, Banbury OX17 3NL Reg. Charity No 297099 www.khh.org.uk

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