Registered numb¢r.' 2184005 Charity number: 298164 THE HEART OF KENT HOSPICE (A company limited by guarantee) TRUSTEES, REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022
THE HEART OF KENT HOSPICE IA company limit•d by guarantee) CONTENTS Page Refornn¢o and adminlstratlve dgtall¥ of the Company. Its Tru$tee¥ and Advls•r$ Trustoes. r¢port 3-16 Ind•p•ndent auditor5. Teport on the linancial statements 17-20 Consolidated statement of flnan¢lal actlvlties 21 Consolldated balance sheot 22 C¢mpany balance sheet 23 Con$olldated statement of cash flow$ 24 Notes to the finaneial st•t8m•nts 25-54
THE HEART OF KENT HOSPICE (A company Ilmlted by guarantee) REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 MARCH 2022 Patron Marianna, Viscountess Monckton of Brenchley Trustws Mr J Barker-mccardle. Chair (resigned 17 May 20221 Ms A Mllllnglon lappolnleQ 8 November 2021} Mr C J Collins (resigned 15 SèptambÈr 20211 Mrs S G St C Cooper Mr R E Fadorcio OBE Mr G Hodnett Mrs E M Howe OBE Mr G Hunter, Deputy Chair Dr N Jegard Mr S R B Langworthy, Honorary Treasurer Miss S Pain Ms R Parris lappoinled 8 November 2021 } Mrs L Potts Ms E Price lappoinled 8 November 20211 MrHTBSmith Mr S Thompson {appDinted 8 November 20211 Ms L Vui lappoinled 8 November 2021) Company registered number 2184005 Charlty re9iStered number 298164 Rggistered offi¢• The Heart of Kent Hospice Preston Hall AeSf0rd Kent ME20 7PU Chiéf èxecutivè offiear Ms R Strèèt lappoint•d 22 Nov8mbèr 2021} Sonlor managomont team Mrs K Harrison. Pati&nt SeNices Director Dr G Parker MBBS ILondl FRCP. Lead Medical Consultant Ms A Kelly. Income Generation Director Mr S Webster, Finance Director (resigned 31 January 20221 Mis K Dackombe, Finance Director lappoinled 20 April 20221 Ind¢p•ndent auditors MHA Maclntyre Hudson Maidslone United Kingdom Bankers Barclays B8nk plc Fremlin Walk Maidstone Kent ME14 1QG Page 1
THE HEART OF KENT HOSPICE IA company limitsd by guarantee) REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY. ITS TRUSTEES AND ADVISERS (CONTINUED} FOR THE YEAR ENDED 31 MARCH 2022 Solicitors Cripps LLP Number22 Mount Ephraim Tunbrldge Wells Kent TN4 8AS Page 2
THE HEART OF KENT HOSPICE (A Company Ilmltgd by guaranteo) TRUSTEES. REPORT FOR THE YEAR ENDED 31 MARCH 2022 The Trustees present their annual rewrt together with the audited financial statements of Ihe group and the company for the year to 31 M8rch 2022. Tha Trustees confirm that the annual report and financlal statements of the company comply with the current slalulory requirements. the requirements of the companys goveming document and the provislons of the Slalement of Recommended Practice ISORPI, applicable lo charities preparing their accounts in accordance with thè Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 leffgctivg 1 January 2015} as amended by Update Bullglln 1 leffecllve 1 January 20151. STRUCTURE, GOVERNANCE AND MANAGEMEMT Heart of Kent Hospice is a charity, number 298164 and a comp8ny limited by guarantee. number 2184005- ils Artidgs of Associallon constitute the governing documents. The principal areas of Charitable activity are the provision of specrdlist palliative care services in the heart of Kent area, including the boroughs of Maidslone and Tonbridge and Malling. These services include an inpatient unit. an outpatient centre, support therapies, a Hospice Hub programme. community semces. dementia services, ounselling. gducalion and training. and spiritual care. The governing document The Hospice is a company limited by guarantee and does not have share capital. The constitution of the Hospice is set out in the Articles of Association which were revised and adopted by Speaal Resolution by Members in November 2020 wSth the changes raJfied by the Charlty Commission in May 2021. The governan¢e strudur• During this financial year the Board of Trustees had four m8in sub commlttees whlch mel quart8rlw. Clinlcal Governance Commlttee. Flnance and Income Generation Committee, Govemance. Risk and RemuneraOn Committee and 8 Nominations and Trustee Development Committee. Due to the pandemic. mLtch of our business has been conduGled by way of video conference. with face-towface meetings restarting in 2022. The Board of Trustees is responsible and accoijntable for the governance of the Hospice,. rt met six times in the year. The Chief ExecutNe is responsible for the day-to-day management of the Hospice. Following the resignation of our Chief Executive, Sarah Pugh on 14 May 2021, the Board of Trustegs appointed our Finance DireGlor. RaGhel Street, as Interim Chief Executlve. Following a successful period as Interim Chief Executive, an inlerwew panel fomied of Tru8Èe8s and 8Xtemal parties appointed Fiachel Street as pemianenl Chief Executiv8 effecuve as of 22nd Novembor 2021. Charity governaneÈ eod• The Board has ftjll and careful regard to tha Charlty Governance Code and uses the code as its principal benchmath. The Board is committed lo continuous improvamgnt and development. R•cruitsnent and appointment of new Trustees One of the roles of the Govemance, Risk and Renumeration Committ99 is to recnjil. inéuct and train Trustees. This is delegated to the Ntsminations and Trustee Development Committee which is led by the Deputy Chair of the Board of Trustees. The Board actively promotes diversity and seeks Trustees from a range of backgrounds. Advertisements for new Trustees are published in the local press, on relevant websites, on the Hospice's Website. through local networks and in the Hospice newsletter if appropriate. Only Members of the Hospl¢e who a ejected by the Board of Trustees Can be nominated as Trustees by the Governance, Risk and Romuneration Committee. The Trustees arè elected for a term of three yeaTS, renèwable for a further three years. The Chair is appointed for a fiyear term. Page 3
THE HEART OF KENT HOSPICE (A company limlted by guarantael TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022 Jim Barker-mccardle stepped down as Chair and Trustee in May 2022, followng a successful five-year temi. The Tru$lees and Executive Team thanked him for his outstanding ieadership and seNice lo the Hosp¢. The Trustees appointed Ann Millington as the new Chair of Tiustges in May 2022. and they k>ok forward lo working with her. On 5 Juty 2022 our founding Patror). Marianna. Viscountess Monckton of Brenchley, sadly dled. Trfbules were paid to an inspirational. dedicated. and passionate lady who will be missed enormously by colleagues. volunteers and all who knew hor. Polici05 and procedures for th8 inductlon and tralnlng of Trustees The Hospice UK document enlitkd 'lnduclion of New Trustee5' as well as the Charity Trustee welcome pack published by the Charily Commission is used a5 8 model for Trustee induction and training. AJI Trustees receive a thorough induction and seek to ensure through the governance structure that the Board complies with best practice requirements. Trustee code of conduct The Board adheres to the Hospice's Code of Conduct for colleagues and volunteers. The Board takes its leadership role in upholding the values of thè Hospi very seriously. The Bo8rd has adoptod the Hospice's culture framework and conducts itself in line with the Hospice's behavioural standards. The wider network The Hospice is a member of Hospice UK. The Chair and Chief Executive attend Hospice UK meellngs wlth other Chairs and Chiof Executives in the South-Easl Region and the Chief Executive neorkS both locally and natlonally. The management team has w811 developed neiwork links with a wlde range of external organisaonS localty and nationalty. Risk managernent A risk manageent framework is agreed annually by the Board. This includes a Risk Register which has been developod to idontify risks, mltlgations, and contingency actions. This Risk R@glster is revieweo and updated monthly by the Executive Team. Risks are revlèwed quarterly by the levant Trustee Committee and quarterly by the Board of Trustees. On an annual basis, the Board agrees a risk threshold and prepares a risk appetite statement. It is recognised that this system can only provide reasonable Inol absolutel reassurance that major risks are being adequately managed. This year. the maln potential risks have conllnued to be Influenced by the ongoing impact of the COVID-19 pand8mic, induding the risks that.. Financial sustainability is wmpromised., Patient experience diminishes.. and straleglc goals not achieved Colleagues Ènd Truslees have worked closely together in the year to mitigate thes8 rSsks. Financial risks are mitigated by regularly reviewing our financial position through management accounts. cash flow modelling, reforecasting, and settlng long term financial plan5. Maintaining levels of patient experiences has been Ghallenging during th8 pandemic. in partlcular regarding visitin9, however usual visiting arran9ements are now re-lnslaled and outpatient seTvices have recommenced. Strategi¢ goals are set annually, and progress is monitored at Executive 8nd Board meetings. Page 4
THE HEART OF KENT HOSPICE (A company Ilmltsd by guarantee) TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022 OBJECTIVES AND ACTIVITIES The Hospice's objects, as set out In the Artic19s of Association are the relief of the need5 of those who are suffering from a chronic or teM)In illness, disabilsty, or disease and in particular, but not so as to limit the gener81ity of Ihe foregoing, by.. a) the provlsion of an inpatient unit, outpatient cenlre, community servicé and bereavement service in the Kant and Medway area for such persons and thelr relatlves and carers.. b) to conduct. promote or encourage research into the care and treatment of patients wth progressive Ilfe threatening diseases and to publish thg beneficial results of any research undertak8n by the Charity., cl lo promote the principles and Practi of palliatlV8 care throughout the wider community by assisting in mulli professional training and education., dl lo provide and facilltale the provision of physical. social. and psychological care and spiritual help for patients. relatives or carers under the care of the Charity and for the colleagues and volunteers working wlh them. Our vision Our vision is that evéryone limng with a temiinal illness in our community will achieve the best quality of life. We seek to achi8ve this by onabling pooplo with a terminal illness in our community lo live in comfort, with independ8nca and dignity to th8 and of thèir lives, and to support tho$e ¢10$08t to them. Our values and ¢ulture framgwork Our culture. values and behaviours guide our decision making and how w8 conduct ourselves in our work. They ensuro all palienls, and Ihgir familigs reoeive the very best care ijay in and day out. Our values are Compasslon. Integrity, Rgspeci and Teamwork. The Hospice has a culture framework whSch celebrates our values and helps colleagues and volunteers put these values into action. The culture framework includes four core behawours., I care, l own. I learfi. and I improve, vllh assoclaled behavioural standards whid) run through how we recruiL develop, and relain our team. Dlverslty and Incluslon The Hospice is Gommitted to being an equal opportunities employer. This Means that decisv)ns conceming all aspects of employment wll be based on the needs of the organisation and not any assumptions b8$ed on sex, race, age, disability. gender reassignment. sexual orientation, maryled or clvil partnership status, pregnancy or maternity. rellgion. or belief. All collaagues ar8 required to ablde by gquality. diversity. and inclusion principles. Foll¢)wing an external equality, diversity and inclusion audit in August 2020 the HOsCe has continued to move forward wth the action plan based on the outcomes of this audit. particularly focusing on incluslvty. Th8 Hosplce is committed to providing skilled and compassionate care in a sUppO.ve environment based on mutual respect and trust. which recognises and values the difference of every individu81. ba they palignl. carer, colleague volunteer or visitor. The Chi8f Executive is the exa¢utive sponsor of this work and is supported by colleaguos in the Belonging Working Group. A membèr of the Hospice team is appointed as the Hospice's Freedom to Speak up Guardian and Ih&y support colleagues to speak up rf they feel that they ar8 unable to do so by othgr routes. Page 5
THE HEART OF KENT HOSPICE {A company Ilmited by guarantee) TRUSTEES. REPORT {CONTINUEDI FOR THE YEAR ENDED 31 MARCH 2022 Our slratsgic prlorltlgs Thè Charity's five strategic priorittes are.. 1. Local carè: We will establish a modal of local Hosplce support throughout our communilies. 2. Flexible, person centr8d caro: We will develop our servic8S SO that they can meet a wde range of patignt and family needs. 3. Speclalist ¢arg: We wlll prowde specialised care lo every patient end maintaln our reputation as a centre of excellence. 4. Skilled. compassionate care: We will be the organlsation of Ghoice for colleagues and volunleers. S. Care for our cause: We will enable our local ¢¢)mmunity to regard the Hospice as the local cause to support. Patient servlce5 provlded Heart of Kent Hospicè is a specialist palliative care and end of lifo care provider, which offers support lo patients with temiinal illnesses including those with dementia. It has beds for up to ten inpatients and an oulpatienl Hospice Hub for all patients and carers lo access. The Hospice currenUy cares for approximately 950 pallents and their carers at 8ny one lime in the community. The Hospice has embedded the use of outcome measures throughout 011 clinical areas using the Osjtcome Assessment Complexity Collaborative IOACCI national toolkit. This enables the clFnieal tearns to understand better patient and carer needs and measure individual and seNice outcomes for patients. The tools used as part of the OACC sulte enables support and care to be delivored 'at the right time. in the rlghl place by the right person." The Hospi¢e offers a range of services whith indud8'. Inpatient servlces The inpatient unit has 10 single ensuite bedrooms and provides 24tT Care for patlenls. all year. Patients are k)oked after in the inpatlgnt unit for a variety of reasons including= Short term 8s$esgmant and mgnagèmont ol pationts wth eompl8x arKllor unstable needs, be they physical, psychological, social or spiritual Rehabilitation and adaptation lo changes in fundon associated disease progression 8ndlor treatment Care in last days of life Emergency respits care Care after death Pag8 6
THE HEART OF KENT HOSPICE (A company Ilmltod by guarantsal TRUSTEES. REPORT (CONTINUED FOR THE YEAR ENDED 31 MARCH 2022 Ho$pi¢• Community Team The Hospice Community Team providGS high quality, seven day a week specialist palliative care advice for those patients with a progressNe life limiting illness who are being cared for al home or in a care home and to offer support lo their family, car8rs, and fTiends. The leaw has a skill mix of Nursas. Paramedics and Healthcare Asssstants, all who contribute to patients and Carers being seen at th8 right lime. in the right place by the rlghl person. They provide.. Cllnical assessm8nt and ongoing support to maximise symptom control Twice weekly drop-in sessions via the Hospice Hub Ilhese were paused during the COVID-19 pandemic) Oulpalient appolntments. home visits, telephone. or video assessments las appropriate under the COVID-19 pandemic reslri¢tionsl Advance care planning and support for patients their preferenGes and wishes Advice and support for external healthcare professionals Hospico Dementia Team The Hospice Dementia Team takes referrals for dementia patients earty on In thelr illness to enable advancg care planning and offering support and education to patients and carers. The Head of the Dementia Team FS supported by an experienced Clinical Nurse Specialist, Staff Nuyse, and Healthcare Assistant, and they 811 support patients and carers in their own homes or in care homes. They provide.. A monthly Dementia Cafe held in Magnolia Place oulpatienl centre Ilhis moved to a virtual café during th& pandemi¢l The Making Memories@ programme, which 18 a weekly, six-week dementla programme for patiènts and their carers A carer support group with soclal work support provbdlng pre beavement and post bereavement support for carers Formal and informal training for carers and healthcare professionals The mle of the Hospice Community and Dementia Teams a both advisory and educational. The teams do not takè over the day-to4ay cara of thè patiènt bul providé spècialist palliativè carè advice and support for pat16nts. carets, and healthcare professionals. They have an in-depth specialist knowledge of the assessment and management of physical, psychological. emotional, social, and spiritual needs lo reduce symplorris, Suffering and distress, including CoMpX symptom management. The teams are also able lo support in analysing complex clinical decisions where medical and person81 interests are finely balanced, by applying relevant ethical and legal reasoning alongSe clinical assessment. They also pmwde multidisciplinary specialist advice, support. education. and trainlng lo the wder care team who Is providlng dlr6cl core level palliatsve care to the person. Famlly Support Team The Famity Support Team promdes counselling. soclal work for Children, young people and families. welfare advice and chaplaincy support. led by our Spiritual Lead with volunteer support, to all patients in the community and within the outpatient centre and inpatient unit This support is offered pre-ber9avement lo the patients andlor their carers, al thg timo of the death and into bereavement. Page 7
THE HE4RT OF KENT HOSPICE (A company limited by guarantee) TRUSTEES. REPORT (CONTINUED} FOR THE YEAR ENDED 31 MARCH 2Q22 Worklng in dose liaison with the primary health care team. the Family Support Team Pfovides-. Pre and post bertravement counselling Family and chIldn support Welfar8 support SpSritual Care Compassionate Neighbours Towards the end of 2021 the clinical teams reviewed the PTevlous Living Well model of oulpatlent services and agreed to change the offering to pationts and carers lo a more flexible and accèssible Hospi Hub drop-in model. The Hospi Hub programme is held in Magnolia Place within the Hospice and is as follows.. Monday & Thursday.. Dropin sessions no referr81 required for patients and ¢arers. This hub model provides a one-stop-shop to access support wllh syynptom and poin control. advance care planning, social support, spiritual, emotional, and welfaTe support. Tuesday.. The Dementia team fun Ihe Making Memories programme Wedn8sday-. Bereavement drop-in group 15 run, supporting families, and loved one's process grfef and bereavem8nt in so¢HI setting. Individual bereavement counselling is also available. Friday. Twic¢ a month, in partnership wth the Motor Neurone Disease Association (MNDAI. a drop-in group for patients ¥Mth Motor Neurone Disease is run. Salurd8y. Once a month a Dementia café is run in the Hospice for people Demèntla and their carers and loved ones to attend. Worklng in clos6 Ilalson wilh the prlmary health care team, the Famity Support provldes: Pre and post bereavement counselling Family and chlldren support Welfare support Spiritual Care Compassionate Neighbours Therapltrts Occupational therapy and physlolherapy can be offered to Hospice patients on the inpatient unlt through the Hospice Hub as required. Educatlon and dovelopment The Education Team provide internal and external clinical training including clinical statutory and mandatory tralnlng sessions. where the Educatlon Team supports colleagues to achieve the Hospice competencies and clinical Competencies as required. The Education Team also provide trainlng on all aspects of palfialive and end of lrfe care including providing multidisciplinary specialist advirE, support. education, and training to the nursing homes and other healtheare professlonals who are providing dIrt core level palliative care lo the person. They are part of the K&nt and Medway Collaborative for training and education and providè KCC lunded training for Care Homes. Page 8
THE HEART OF KENT HOSPICE {A company limited by guarantee} TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2022 Heart of Kent Hospice has become a regional provKler for Accredited Gold Standards Framework training for care homes and domiciliary care agencies and facilitates the European Cerbficate in Essential Palliative Care IECEPC} dlslance arnIng course. which is aimed at helping professionals consolid81a and develop their palliatlv8 care confidÈnee and 8xp9thse. The course is also designed lo meet the needs of healthcare professionals new lo specialist palliabve care servlcas who wlsh to estsf>lSsh a strong foundatlon of knowledge on which lo build specialist knowledge and skills. The Education Team also supwrt the Head of Inpalent Unll to ensure the standards required to deliver outstsnding care on the inpalienl unil are mel. The Practice Development Nurse works with nurses on their induction. relum lo practrce. student nurses and the inpatient unrt team lo complete thgir practical 8n¢J theorelical competencies. The Hospice provides fvrther education via ECHO (Extension of Community Healthcare Outcomes) nelworks, ¥thich is a shared learning Zoom platform supported by Hospice UK. Th& Hosplce COVID-19 Respon$• 2021122 During 2021122. the Hospice continued lo respond to the COVID-19 pandemic, utilising and adapting the strategies and tools put in place in the prior year, such as daily Executive Team calls, weekly Heads of Department C811s and remote working to manage the risks lo our pattents, their famill8s, colleagues, and volunteers. During periods of lockdown. patient and earer face to face sessions, Dementia Café and Making Memories groups continued lo be provided as online sessions and dropin and outpatient appointments remained closed- only essential home visits were carried out and patients and carers were supported by the Glinical teams by telephone and by video link. The inpalienl unil continued lo admit patients and follo¥Mng indiwdual risk assessments Patient Care Volunteèrs continued to support the nursing t8am. Education and training sessions successfully continued to be delwered as online sessions vi8 video platforms. The education team worked wlh Kent and Medway Clinical Commissioning Group education platform lo produce training for care home prowders and visited care home5 to provide practical personal proleclive equipment IPPEI and COVID-19 swab testing training. Thè Patient Setvlces DIreCt Jolned a daily local health economy ILHEI meeting which included all local healthcare providers whiGh look a system wide approach to information sharing and escalation of concerns. To ease the pressure on the acute trust tho Hospice liaised with the discharge team and Frailty Matrons to facilitatè inpatient admissKJns for appropriate patients. Into 2022 the LHE meetings continued on a Week basis. As Govemmenl reslriclions were lrfted in 2022 the Hospice re-stsrted f8ce-lo-fa¢8 patient carer interactions, home vlslls, wunselling and vla the Hospice Hub and IPU visllor reslridons were relaxed. The large majorty of Hospice coll&agues, both patient facing and non-palienl f8cing took part in the COVID-19 vaccination programme receiving al least threa dos8s of the vaccine. Regular testing via lat8Tal flow tests and PCR tests conts'nue(l until April 2022 and a twice weekly lateral flow tesung regime remains in place. Page 9
THE HEART OF KENT HOSPICE (A company limited by guarantee) TRUSTEES, REPORT ICONTINUEDI FOR THE YEAR ENDED 31 MARCPI 2022 STRATEGIC REPORT ACHIEVEMENTS AND PERFORMANCE Quallty Assuranco Following a routine inspeGtion by the Care Quality Commission ICQCI In February 2017 the HosplGe achleved an overall rating of Outstsnding, gaining Outstanding in Caring and Responsive ¢Jomains and Good in Safe, Effectlve and Well led. Monthly CQC monitoring started during the pandemlc and is contlnuing as their model of inspgdon on n98d and risks identified. Patient services report qil8rterty lo the Clinical Govemance Commrtlea. Monthly cliniGal management and medicine5 management meetings tske place co¥&rlng topics such as safeguarding, audit, complaints. and incidents. An audit and research group meets every eight weeks, lo rev and monitor the core clinical audits and lo ensure the implementation of any actions or learning from audit findings. 11 also eneourages each clinlcal team to undertake al least two service specific audits per year. Monthly SPDt checks are carried out across clinical are8S to ensure quality and standards are maintained. Due lo the pandemic, the National Instltute for Health Research Clinlcal Res8arch Network {NIHR CRNI paused the sile setup of any new or ongoing studies al NHS and social care sile5 that were not nationally prioritised COVID-19 studies in March 2020. sIn the nonurgent public health research studies have gradually resumed their activities, the Hospice has recruited 19 caregivers overall to the two followng national Portfolio Studies.. Measuring Outcomes of People with Demenlla and Their CaTers Qualitative Study of Experiences of Family Carers of People with Cancer Recelving Home Based - Palliative Carg Tha Hospice has established a devglopment framework lo support colleagues, personal Career development. Members of the senior nursing teams are supported to undertake Non-Medi¢al Prescribing and Advanced Assessment Skills training. We are also supporting one Healthcare Assistant lo complete the Nurse Associate Tralning. which is a roula into becoming a qualif5ed regislered nurse. In the Moncklon Education Centre, we deliver the Hospice's extem81 and intem81 programme of high-quality palliative and end of lrfe Care tTaining courses. Bespoke training is carrled out in nursing and care homes by the Education Team- this training can be supported bY-eXperien days. on the inpatient unit. Senior Clinicians attend the Kent and Medway CCG End of Life Group meetings monthly to work in colLiboration with other agencies to formulate and implement a Kent and Medway CCG End of Life Strategy. The Patient Services Director and Head of Hospice Dementia Team attend all relevant sèctor groups including a Dementia Strategic Implementstion Group, a Cancer Improvement Group, and the West Kent Alllance Joint Programme Management Group, plus Frailty and Ageing Well stralggy meetings. The Patient Servl¢8s Director is co<hair of the Execufjve ClinirAI Leads In Hospi and Palliative Carg So%Jlh- East Group ané a Spècialist Advlsor for cac. Kgy Porforniancg Indicators IKPls} The Hospice uses several KPIS and dashboards to monitor outputs achieved by activities. The Clinical Dashboard is produced monthly and consists of nlne key metrics inGluding. caseload, number of referrals, bed occupancy 8nd IPU flow, and complaints. The Strategic KPIS are produce¢J quarterly and ronsisl of 20 KPIS. linked lo each of the five strategic priorities with a baseline target sel for each KPI. Page 10
THE HEART OF KENT HOSPICE (A company Ilmited by guarant••) TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2022 Conferences Due lo the COVID-19 pandemlc the Hospice has not hosted a conference in 2021122. Clinical surveys A Pallenl and Carer survey is planned for 2022123 and Views on Care la tool in the Outcome Measures kill is used to measure patient experience. Th¢ Patient and Carer Engagement IPACEI Group continued to meet every aght weeks., the group met virtualty throughout the pandemic bul is now meeting face to lace. They support patient and carer feedback enabling the Hospi¢e to make improvements and respond lo comments in a ¢onslru¢tive, positive way. New members have been recrulted to the group during the last year. The group use the coc "r statements to gather feedback and have returned to face-to-face patient sessions. The feedback is reviewed by the Patient Services Director and any actions and learnings are discussed by the EXUl1Ve team. Tho feedbk provides gvidence that patients feel the service they receive is good or very good. Inpatient ilnit During the year lo 31 March 2022 a totsl number of 3,245 bed days 12021.. 3.6601 were available. Wilhln the peri of the financial year there were 192 inpatianl stays 12021= 1921, of whlch 189 12021.. 1901 were ffrsl admissions and 312021= 21 were repeal admissions. The 8V8rage length of an Inpallent stay was 12 days {2021: 101. Hosplce Communlty and D8mgntla Tgams The multiskilled Hospice Comfflunity and Dementia Teams have efficiently met ihe demand of a busy and growing caseload. The average caseload during the year was 916 pati8nts 12021.. 8591. Despite a small decrease in referrals during Ihe year thtr actual caseload in¢reas¢d by 7%12021: 50A increase). During the year ended 31 March 2022, the lolal number of patients cared for by the Hospice Community and Dementia Teams was 1640. 12021.. 1.545) of which the total referrals for both was 961 12021.. 9371. The breakdown of the totsl number of ref8rraL% is 735 {2021'. 794) for Ihe Hospice Community Team and 22612021: 1431 for the Hospice Dementla Team. Our Hospice Community Tèam conducted 1,310 12021= 1.0011 home visits, telephone and vid80 assessménts and made a total of 20,93512021: 21,4131 telèphone calls. Our Hospice Dementia Team conducted 272 home visits, telephone, and video ass8ssments12021= 5251 and made a total of 3,863 telgphone calls12021.' 4.294). During the year 621 patl8nts dlèd12021'. 810}- Family SupportTeam The number of bereavement counselling refèrrals was 272 12021: 2301 and welfare r8f8rr81s were 169 12021- 1511. Page 11
THE HEART OF KENT HOSPICE {A company limited by guarantee) TRUSTEES, REPORT {CONTINUEDI FOR THE YEAR ENDED 31 MARCH 2022 Infomkition Technology The Head of Information and QLFalily Assurance is responsible for the management of the Tange of Hospice databases and works closely with Heads of Departrnents and the Hosplce's IT provider to facilitale best usè and safe storage of available data. This year we once 8galn successfully met the Data S¢¢urity and Protactson toolkit requirements and the annual assessment we submitted was approved. Thls enable5 US to use NHS Connecting for Health systems and SgNlces such as N3. This will enable the medical and clinlcal teams at the Hosplce to share and access rglevant patient information in a Secure manner and improve the over811 o)ordinatlon of care. Clinical colleagues are using IPOS {Inlegraled Palliative Care Outcome Scale) lo measufe patient outcomes which wll enable the H05pice to report into Public Health England's new Palliative Care Information Framework. Outcome measures are now being used to triage patients according to their needs. We report intemally on key perfcm)ance indicators monthly and share information with Kent and Medway CCG as required for the grant in aid agreement. We also submit data to Hospice UK lo enable us lo benchmark drug incidents, and slips, trips and falls against local and nalional data. We have started on our joumey of digital transformation. embracing new technologles In our everyday working and in response to COVID-19. enabling colleagues lo work remotely, productively and effectively. In Jar*uary 2022. electronic prescribing was impl8mented on our in-patient unit, improving efficien and reduGing the risk of medication errots. We constantly review our IT roadmap lo continually improve and modernise ways of working. Income Generatlon Heart of Kent Hospice is registered with the Fundraisin9 Regulator and is an organisalional member of the Chartered Institute of Fundraising. Our lottery is rogistered with The Gambling Commission. Our supporter promise is published on our website and outlines our commitment to our supporters. Each year members of the fundraising and finance team attend regulation and eompliance training. This training includes guidance on how to Idenlrfy and svpport vulnerable people. I colleagues are held accountable to our supporter promise and organisational behaviour framework. The Hospice is registered with the Fundralsing Preference Servtce and received no roque515 in the year ended 31 March 2022. In adherence the Fundraising Regulator's best practi¢8 Ithfr code of Fundraising Practicè), and Ggneral Data Protg¢1ion Regulations IGDPRI, our fundraising communlcations schedule overseen by the Director of Income Genèration and the Data Protection Officer (DPOI. Other T8gulalory bodies that the Hosplc8 adh9rgs to are the Committee of Advertising Practlce {CAPI, which govgms non broadcast advertisemgnts, sales promotbons and direct marketing communications and the Privacy and Elgctronic Communications Regulations IPECRI. which is law in the UK and has rules on marketing calls, 8maiSs. texts and faxes, the use of cookies. keeping communication servlces sewre and customer privacy. Income 1$ generated through a rolling programme of fundraising activity. lottery and our neiwork of retsil shops. The budget set for 2021122 was pn2denl, given the uncertainty surrounding the public's ability and appetite to participate again in fundraising activities wlh conlinuod concems around COVID-19 infection rates and restrictions. Particular cautlon was applied to m8S5 participatlon evgnts and corporate ftjndraising. Pagè 12
THE HEART OF KENT HOSPICE (A company limited by guarantee) TRUSTEES. REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022 We are grateful lo the Colyer Fergusson Charilable Trust whose grant of £500,000 has been used lo support the Hospice recovery fiom the impacts of the pandemic on fundraising activities during the financial year 10 31 March 2022. Overall, fundraising exce8ded our tsrgel during 2021122 due lo the generosity of Indlviduals who made donations in memory of their loved ones and an gffort to encourage eligible donors lo gsft-aid thelr (lonalions. anticipated, 8vents and corporate fundraising were most volatlle throughout the year as COVID-19 reslriclions and working from he within companies impacted on our original plans. The highluht of our year however was the successful delivery of Elmer's Big Heart of Kent Parade. a nine-week public art installation based on the children's Character, Elmer the El8phanl. Having postponed the trial from 2020 due to COVID-19. we were thrilled lo provide this outdoor activity which was enjoyed by the public during the summer months. raising awareness of the Hospic8, and generating funds through sponsorship, fundrdising arxl an auctlon of all the sculptures. The trail was generously supported by local companies. both financially. and in-kind, irkcluding the use of two retail units which sold trail related merchandise. The Hospice received a grant of £4.000 from the Kènt County Council Reconnect.. Kent Children and Young People Proyramme to provide free lickels lo Elmerfs Big Heart of Konl Parade Farewell Weekend on thè 3rd lo 5th September 2021. Our tall shops traded throughout the year in line wlh COVID-19 rèstrictions arKI exceeded tsrget overall due to underspend against the exp&nditure budget. Following the success of Elmer's Big Heart Of Kent Parade in the Town Centr& we were able to secure a new retail unit in The Mall Shopping Cenlre, replacing our previous unil on King Street. In Ilne with a re-for8casted budget. taking into consideration th8 impact of COVID-19 pandemSc, participation In our weekly lottery continued to fall during 2021122 as we were unable to resume canvassing activity to boost player numbers. The Finan¢9 and Income Gengralion Committee meets quarterly to oversee income generation activity and monitor progress. Expenditure on raising funds Inol Includlng other trading expenses ended 31 March 2022 compared lo the prior year. note 91 increased by 2S% in the year Fundraising Ragulatlon and Complianco Heart of Kent Hospice complles wth sector best pracllce. It is a member of the Fundraisino Regulator and Chartar$d Institute of Fundraising and registered with the Fundraising Preferen Service. During 2021122 all fundraising was wnducted by the Hospicè's team of employed fundraisers. No complaints were raceivgd with iogards lo fundraising throughout the eourse of the year and no professional fundraisars were contracted. Three commercial partnership agreements were in place during 2021122 rèlating lo the proceeds of a book c¢)written by the Hosplce's Laad Palliative Care Consultant, and two partnerships wlh organisations supporttng Etrner's Big Heart of Kent Parad6. No third party lotlgry canvasslng took place in 2021122. The Hospice monitors and manages its fundraising regulation and compliance through a combination of training proJr8mmes, inlemal processes, intemal audits and quarterfy management reporting. This tskes into consideration the collection and use of personal data, frequency of contact, how to identify and support vulnerablg people and compliance and reguL4tory requirements. Page 13
THE HEART OF KENT HOSPICE IA company limlted by guarantee} TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2022 FINANCIAL REVIEW As reported in thè Consolldaled Statement of Financial Activities for the year, the Hospice's results for the year ended 31 March 2022 show a Surplus of £933k, whl¢h compared to a SLirpltJs of £1,021 k for the prewous year. Totsl income for the year was £6.4m, compared lo £6.Om in 2020121. Given the continuing dlsruptlons caused by the pandemic during the yèar. thèse ex¢eptlonal figures are predomlnantly 8xplained by the one off COVID-19 capaclty grant, and the success of Elmerfs Blg Heart of Kent PaTade conlrlbulirrfJ net in¢ome In year of £159k. NHS England awarded COVID-19 paCIty grdllt funding of £677k vla Hospicg UK in the year. to help support the Hospice in providing patient care to support the NHS COVID-19 resporbse. The budget for 2021122 was set at a deficit (rf £324k. 5UPPOrted by the signrficanl grant from tho Coty8r Fergusson Charitsble Trust, but before the reinstalernent of the COVID-19 capacity fundlng became known. Thls fvnding. along wlh a positive year for legacies and grfls in will has meant th81 the 2021122 financial results generated have resulted in general reseryes being higher than expected. A deficit budget of £840k for 2022123 has been sel and the challenge facing the Hospi in the short tem 15 how in an increasingly challenging economy. il can both protect services, manage the increaslng demands of our community and relum to an operationally balanced financial position. The resourees expended in dellverlng our charitsble actwities and seTrice8 Inote 101 increased marginally. reflecting the investments made in service development and the increase in the numb8r of patients and families we ar6 reaching. Of tho funds ralsed, £2.Om (a 30% Increase on 2021.. £1.5ml was utilised in generating the funds themsalves, the majority of which relates lo the operating costs of the two trading subsidiaries and the costs associated Elmef s big Heart of Kent Parade as the Trading subsidiary donated the Sculptures lo Ihg Hospice for aucfjon. The grant received from Kent and Medway Cllnical Commissioning Group under a service level agreement of £964k {2021-. £964kl, amounted to approximately 170fi of total expendlture 12021'.19¥0}, which means that the Hospice must obtain al least 83% of its funding from other sources. An analysls of the income for the year is shown in note 4 of the accounts. RESERVES POLICY The Trustees have reviewed the reseNes pollcy and they continue to requim the HOSPI lo hold free reserves to ensure both the finan¢ial securlty and the operational flexibility of the Hospice. The tsrget for the reserves {as measured by the unreslricled general fund, including undesignaled fixed assets offset by long term creditors was last reviewed in 2021 and was set to a target of between £1.8m Iminimuml lo £2.5m Imaximuml based on estlmaled costs of closure for the Hospice and Ils tradlng subsidiafles. On 31 March 2022, the Charity's free reserves amount lo £3.6m {2020121 £2.9ml. Thè total ¢onsolSdated funds on 31 March 2022 were £6.4m 12020121 £5.4ml 8nd consolldated reslrlcted funds on 31 March 2022 were £0.1 m {2020121 £0.2ml. The last two financial y8ars have productsd exceptlonal results for the Hospice with addlllonal one-off fundlng materially bolstering the reserves position. The budgèted loss for 2022123 of £840k would result in general reserves of £2.75m as of 31 hAarch 2023. which is marginally above the upper target limit. However. given the experience and unpredictability of the 18St bNo financial years coupled with rising inflation and increasing Cost pressures the Trustees will Continue to monitor the appropriateness of the reserves policy. GOING CONCERN Acwunting stsndards require the Trustees lo consider the approprfalenes5 of the goin9 conc¢rn ba8is when preparing the financial statements. The Trustees confirm that they consider thal the going concern basis remains approprSate. Page 14
THE HEART OF KENT HOSPICE {A cotnpany limited by guarantee) TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2022 The Trustees regard the going concern basis as remaining viable as the Chaiity has adequate resour$ to continue in operation81 existence for the fore8eeable future on the basis that there are adequate cash reserves within the Charity. Invostment Pollcy and Returns The Trustees are permttted by the Chariws Memorandum and Articlès of Association to invest the monies of the Trust not immediately required ft)r its own purpose in such investments. securities or propety as may be thought Investment income in the year ended 31 March 2022 was £8,58612021.. £6071. The Executive regularly monitors the cashflow requirements of thè charity and reports to Twslees, striving to secure competllive interest rates where applicable by considering the most appropriate vehicles for investing the funds. taking account of interest rates, credit and interest rale risks and terms to maturity. Publlc Beneflt The Trustees confim th81 they have complied with the duty in Section 4 of the Charities Act 2006 to have due regard to the Charity Commisslon's general guidance on public benefit. The charitable purpose of Heart of Kent H05pice is slated in its 'Obledves and Activities, and the Trusteas ensure that this purpose is carried out for the public benefit by worklng to these obl9ctivas. Spg¢ial acknowledgement to colleagues. volunteers. and advlsors The Board of Trustee5 wishes to recL)rd Ils appreclallon of the Hospice's highly Committed colleagues and volunt88rs who gengrously and unstintingly give their lime, skills, and gxpertise. The unpreden1ed pace al whh everyone has adapted in response to COVID-19 is acknowledged. The continued commitment lo make difference in such challenging times is inspiring. We are delighted that the majorfty of our volunteers have relumgd to providing their support in person in 2022. The Hospice is fortunate to have in the region of 600 volunteers who make a contribution to the Hospice which is worth over £1m in time. The Hospice could not survive in its present form without the support of its generous volunteers who offer their contributions in all aspeGts of Hospsce activlty,. thls includes Glinical. aflministrative an Income generation roles. The Board is grateful for the valuable help and assistance received from its professional advisers. REMUNERATION POLICY The reMuneraon of key managgm8nt colleaguos is reviewed by a subcommittee of the Hospice's Board of Trustees to ensure it is competitiv& wlth the charity sector, proportionate to the complexity of each role and in line with our charitable objectlves and values. A vieW is conducted at least every three years of pay. terms and conditions of all colleagues to ensure they are fair and competiknve. Future Plans The Hospice has a three•year Strategic Plan in place which covers the years 2021122 to 2023124. The fivo strategic priorf(ies are listed above under the heading: Our strategic priorities, and the full plan can be found on our website lYAvw.hokh.orgl. Page15
THE HEART OF KENT HOSPICE IA company limitsd by guarante•l TRUSTEES. REPORT ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2022 Trustses. re$pon$lbllitie5 Statament The Trustees (who are also directors of The Heart of Kent Hospice for purposes of company law) are responsible for preparing the Trustees. report and the financlal statements in accordanGg Yrfith applicable law and United Kingdom Accounllng Standards (United Kingdom Generally Accepted Accounting Pract11. Company law requires th¢ Trustees lo pr8pare financial statements for each financial year. Under company law tho Trustees rnust not approve the financial statements unless they are satisfled that they glvg a true and fair view of the state of affairs of the charitable company and the group and of the incomo resources and applicallon of resources, includlng the Income and expendituro. of the charitable group for that period. In preparing thesa financial slalemenls, the Trustees are required to= sdect suitable accounting policles and then apply them Consistently, observe the methods and principles in the Charities SORP.. make judgements and accounting estimates that are reasonable and prudent- prepare the financial statements on the going concern basis unless it Is Inappropale to presume that the charitable group will continue in operation. Th8 Trustèes are responsible for keeping adequate accounting records that are sufficient to show and explain the charitabl8 company and the group's transactlons and disclose with reasonable accuracy al any time the financial position ol the charitable group and enable them to ensure that the financial statements comply with the Companies Act 2Q06. They are also responsible for safgguarding the assets of the charf(able company and tho group and henco for taking reasonable steps for the prevention and detection of fraud and other irregularities. DIlosUre of infomiatlon to audltor Each of the persons who are Trustees al the tim8 when this Tru81eos' report is approved has confimied thal= as far as that Trustee Is aware. thgre is relevant audit information of which Ihe Gharitable group's auditor is unaware, and that Trustè8 has taken all the steps that ought lo have been taken as a TTUStee in order to be aware of any relevant audit information and to èstablish that the charitable group's auditor is awara of that infomiation. Approved by order of the members of the board of Trustees and signad on tsir behalf by. Ms A Mlllingto Chair Date.. 22 September 2022 Page 16
THE HEART OF KENT HOSPICE (A company limited by guarantee) INDEPENDENT AUDrroRS' REPORT TO THE MEMBERS OF THE HEART OF KENT HOSPICE Opinion We have audited the financk31 statements of The Heart of Kent Hospice Ilhe 'parent charitable company,) and its subsidiaries Ilhe 'group') for the year ended 31 March 2022 which comprise the Consolidated statement of rinancial actimties. the Consolidated balance she&t, the Company balance sheet. the Consolidated ststement of cash flows and the related notes, including x summary of significant accounting poli¢ies. The financi81 r8porting framework Ihal has been applied in their preparation 15 applicable law and United Kingdom Accounting Standards, including Financlal Reporting Stand8rd 102 'The Financial Reporting Standard applicable in the UK and Republic of Iraland, (United ngdoM Generally Accepted Accounting Practi}. In our opinion the financial statements.. give a true arKI fair view of the stat6 of the Group's and of the parent charltable company's affairs as al 31 March 2022 and of the Group's incoming resources and application of resources, including its income arKI expenditure for th6 year then ended; have been properly pr8pared in accordance with United Kingdom Generalty Acceptsd A¢unting Practi,. and have been prepared in accordance with the requirements of the Companies A¢1 2006. Ba$is for opinion We conducted our audlt In accordance wth Intern8tlon81 Standards on Audibng IUK) IISAS IUK}l and applicable law. OUT responsibilities under those standards are further described in the Auditors, responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical réquirements that are rel8vant lo our audit of the financi81 slalements in the United Kingdom. including the Financial Reporting Council's Ethlcal Standard. and we have fulfilled our other Èthical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtalned is sufficient and appropriala to provlde a basis for our opinion. Conclusions relatlng to going concern In auditing the financl8181atements. we hav& con¢luded that the Trusl6&s' use of the going concern basis of aecounting tn tha proparatlon of tha financial stat@mants is gpproprlgta. Based on the work we have performed. we have not identified any material uncertainties lating to events or conditions that, individually or collectively, may cast signrficant doubt on the Group's or the parent charitable ¢ompanls ability to continue as a going con¢em for a period of al least twelve months from when the financial statèments are aulhorised for issue. Our responsibilities and Ihe responsibilities of the TNstees with respect to going concern are described in th8 relevant Sections of this report. Page 17
THE HEART OF KENT HOSPICE (A ¢ompany Ilmited by guarantetl INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF THE HEART OF KENT HOSPICE (CONTINUED) other information The other information comprises the infomiation included in the Annual report other than the finandal statements and our Auditors, report thereon. The Trustees are responsible for the other information conlalned within the Annual report. OUT opinion on the financial slalements does not cover the other information and, except to the extent olhewtse expllcilly slated in our report. we do not express any fomi of assurance conclusion thereon. Our responsibility is lo read the other infom8tion and, in doing so, consider whether the other information Is materially inconsistent with the flnancial statements or our knowlgdge obtsined in the course of the audit. or otheise appears to be materially misstated. If we identify such material Inconsistencies or apparent material mi8Statemenls, we are required lo determine whether this gives rise to a m8t8rial miss12temenl in the financial statements themselves. If, based on the work we have performed. we conclude that Iherg is a material misslatem8nt of Ihls other infomialion. we are rèqulred lo r8POrt that fact. We have nothing to report in thls regard. Opinlon on other matters pros¢rlbod by the Companies A¢t 2006 In our opinion, based on the work undertaken in the course of the audit.. the infomiation given in the Trustees, Teport including the Strategic reFK)rt for th8 financial year for which the financial statements are prepared is consistent with the financial slatemenls. the Trust88s' report and the Slrateglc Teport have bgen prepared In accordance with applicablo Iggal requiremgnts. Matters on which wo are requlred to roport by ox¢eption In the light of our knowledge and under5tsnding of the charitable company and its enviroDm8nt obtained in the course of the audit, we have not identified material misstatements In the Trustees, report including the Strategic report. Wo havg nothing to report In respeel of the followlng matters in relation to which Compani88 Act 2006 roquires us to report lo you rf. in ¢)ur opinion.. the parent charitable Company has not kept adequate and sufficient aCuntIng records. or returns adequate for our audlt have not been fecelved from branches not visited by us.. or the parent charitable company financial statements are not in agreement with the accounting records and returns,. Dr certain disclosur8s of Trustees. Temuneralion sp*clfied by law arg not made., or we have not received all the inf¢)mialion and explanations wa require for our audit. Page 18
THE HEART OF KENT HOSPICE {A company Ilmlted by guarantee) INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF THE HEART OF KENT HOSPICE (CONTINUED) Responsibillties of trustees As explaine¢J more fulty in the Trustees. responsibilities statement, 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 slalemenls and for being satisfied that they give a trne and fair view, and for such inlemal control as the Trustees determine is necessary to enab the preparation of financial stalem8nts that are free from malarial misstatement. whether due lo fraud or error. In preparing Ihe financial statements, the Trust&es are responsible for assessing the Group's and the parent charitabl8 companls ability to continua as a going (X)ncern. disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend lo liquidate the Group or the parent Gharilable company or to cease oper31ions, or have no realistic alternative bul to do so. Audltors. responslbllltles lor the audlt of the flnanclal statements Our objectives are to obtain reasonable assurance about whother the financial slalements as a whole are free from material misstatement, whether due lo fraud or error, and lo issu8 an Auditors, report that includes our opinion. Reasonable assurance is a high Eevel of assurance, bui is not a guarantee that an audit conducted in 8ccordanc8 with ISAS (UK) will always delecl a material misstatement when it exists Misststements can arise from fraud or error and are considered material rf. individualty or in the aggregate. they could reasonably be expected to influenco the economic ijecisions of users taken on the basis of these firiancial statements. Irregularities, including fraud. are instances of non¥compliance wrfh laws and regulations. We design procedures in line with our responsibilities, ouuined above, to detect material misslalements in respect of irregularities, includin9 fraud. The extent to which our Procedures are ¢ap¥ble of detecting irregularities. including fraud is detailed below-. Enquiry of management, those charged wilh governanca around actual and potenal liltgalion and claims,. Be¢ausg of thg inhèrent limitations of an audit, th8re is a risk that we wll not detect all irregularilias, induding those leading lo a material misstat8m8nl in tha financial statements or nonrfomplianc8 th regylation. This risk increases the more that compli8n¢e wth a law or r8gulation is removed from the events and transactions reflgrted in financlal statsmonts, as we will be less likely to bgcomg aware of instances of non-compliance. The risk is also gra8tèr régarding irregularities occurring due to fraud rather than error. as fraud involves intentional concealment, forgery, collusion, omission or misrèpresentation. A further description of our responsibilities lor the audit of the financial statemènts is located on the Finan¢ial Reporting Council's website al.. www.frc.or .uklaudilorsres nsibililies. This description forms part of our Auditors. retx)rt. Use of our report This rep(*t is made solely lo the charitable companls members. as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audk work has been undertaken so that we might state lo the charitsble companls members those rnatt8rs we ar8 required to state lo thom in an Auditors. report and for no other purpose. To the fullest extent pemiltted by law, we do not aG¢ept or assume responsibility to anyone other than the charitable compar7y and its membars, as a body. for our 8udit w. for thig r8POrt. or for the opinions we have formed. Page 19
THE HEART OF KENT HOSPICE (A cornpany Ilmlted by guarantee) INDEPENDENT AuDoRs. REPORT TO THE MEMBERS OF THE HEART OF KENT HOSPICE {CONTINUEDI Duncan COchrane-DY Bsc BFP FCA {Senlor statutory audEtorl for and on behalf of MHA Maelntyre Hudson statutory Auditors Maidstonè Date: 29 September 2022 Page 20
THE HEART OF KENT HOSPICE (A ¢ompany Ilmlted by guarantee) CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES IINCORPORATING INCOME AND EXpENDuRE ACCOUNTI FOR THE YEAR ENDED 31 MARCH 2022 Unrestricted funds 2022 RestriGtsd funds 2022 Total funds 2022 Total funds 2021 Note Income from: Donafjons and legades Charitsble activitles Other trading activities Investments Other income 2,999.982 871.551 1,910.242 889 6.687 824,731 7.550 3,824,713 679,101 1.910,242 889 6.687 4.581, 734 280,521 886, 747 607 233.5T5 Total income 5.589,351 832.281 6.421.632 5.983.184 Expendlture on: Ralsing funds Charitable aclmties 1.878.030 2.625.876 1,878.030 3.615.230 1,498,946 3,465.575 10 989.354 Total expenditure 4,503.906 989.354 5,493,260 4,964,521 Net incomel{expenditurel before net 9ains on investments Net gains on inveslments N8t Incomallèxpandlturg) bofor• taxation Taxation 1.085.445 7.697 1157.0731 928.372 7.697 t,018,663 1.093,142 {3.018) {157,073) 936.069 13,0181 1.018.663 2,385 Net Incomell8xpendltur•) aftar t4Xation Transfers between funds 1.090.124 30.850 (157,073) (30,850) 933,051 Y.021.048 22 Net movement in funds 1,120.974 1187,9231 933,051 1,021,048 Reconciliation of funds: Total funds brought forward Net movement in funds 5,207.292 1.120.974 239.514 1187.9231 S,446,806 933.051 4.425.758 1,021.048 Total funds earriad fornard 6.328,266 51.591 6,379,857 5.446,806 Th& Consolidated statement of financial acliwlie5 includes all g8ins and losses recognised in the year. The notes on pages 25 10 54 fom) part of these financlal statements. Page 21
THE HEART OF KENT HOSPICE {A ¢ompany limited by guarantee) REGISTERED NUMBER: 2184005 CONSOLIDATED BALANCE SHEET AS AT 31 MARCH 2022 2022 2021 Note Fixed •ssots Tangible assets 15 2.745.685 2.810.282 2,745,685 2,810,282 Curront assets Stocks Debtors Investments Cash at bank and in hand 17 18 19 11,734 844,633 307,697 3,160,435 116.040 655,485 2.851,258 4,324499 3.622, 783 Creditors.. amounts falling due within one year 20 1686.140) (985,090) Net current assets 3,638.359 2.637,693 Total assets less Gurrent Ilablllll95 6,384.044 14,18n 5,447,975 (7,169) Provisions for Ilabilities Totsl net assets 6.379,857 5.446,806 Charity fund8 Restricted funds Unrestricted funds 22 22 51,591 6,328.266 239.514 5,207,292 Total funds 8.379.857 5.446,806 The TTUStee5 acknowledge their responsibilf(ies for complying Imlh the requirements of the Act with Tespect to accounting records and preparation of financial 51Jlements. The financbal talements were approved and authorised for issue by the Trustees and signed on their l)ehalf by.. Ms A Milltn9ton Chair Dale-. 22 September 2022 The notes on pages 25 to 54 fomi part of these financial statements. Page 22
THE HEART OF KENT HOSPICE IA company limited by guarnnteel REGISTERED NUMBER: 2184005 COMPANY BALANCE SHEET AS AT 31 MARCH 2022 2022 2021 Note Fixed asset$ Tangible assets Investments 15 2,708,487 2. 779.664 16 2.708.490 2, 779.667 Current a$$et$ Debtors Invostrnents Cash at bank and in hand 18 19 1.448.088 307.697 2.190.941 820.351 2,397, 141 3,946.726 3.217,492 Creditors- amounts falling due within one year 20 530.685} (791,928) Net current assets 3.416,041 2,425,564 Total assets less curr¢nt Ilabllities 6,124,531 5.205,231 Total net assets 6,124,531 5.205.237 Charltyfunds Restricted funds Unrestricted funds 51.591 6,072.940 239,514 4,965,717 Total fund$ 6.124,531 5,205,231 The Trustees acknowledge their responslbllities for complwng thg requirements of the A¢t with respect to accounting records and preparation of financial stalemenls. ere approvod and authorised for issue by the Trustees and signed on their behalf by- The fi anctal stateme M$ A Mlllln9 Date.. 22 September 2022 The nolgs on pages 25 to 54 form part of these financial ststemenls. Page 23
THE HEART OF KENT HOSPICE IA company limited by guarantee) CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2022 2022 2021 Cash flows from operating aetfviti•s Net cash used in opeTating acliwties 688.198 I,f17,041 Cash flows frorn investing actSvlties Purchase of tanglble fixed assets Purchase of investmenls Interest received {79,018} (300,0001 889 (40.769) 607 Net cash u$od In Investing activities {378,1291 {40,162) Change in cash and ¢a$h equivalènts in the year Cash and cash 8quival8nls at the beginnlng of the year 310.069 1,676,879 2,844,338 i.t67.459 Cash and Gash equivalents at the gnd of the year 3,154,407 2,844,338 Thè notes on pages 25 to 54 form part of these fbnanclal statements Page 24
THE HEART OF KENT HOSPICE {A company limited by guarant) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 General Inforniatlon The Heart of Kent Hospice is a charitable company limited by guarantee and is registered with the Charily Commission (Charity Registered Number- 298164) and the Registrar of Companies (Company Registered Number: 02184005} in England and Wales. The address of the registered office Is given in the Charity information page of these financial stalemenls. The nature of the Charitys operations and the principal activllles are that of a Hospi and asso¢i8ted activitses. The Members of the Company are the Trustees named on page 1. In the event of the Ch8rlty being wound up, the liability in respect of the guarantee is limited lo £1 per Member of the Charity. The financial slalements ar8 presented in sterling which is the fvnclional curr8ncy of the Charity and rounded lo thg nearest £1. A¢¢ountlng pollcles 2.1 Basls of preparation of finan¢lal statements The financial slalements have been prepared In accordanc8 with the Charities SORP {FRS 1021 Accounting and Reportlng by Charities.. Statement of Recommended Practice applicable lo charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 (effective 1 January 2019}, the Financial R¢porting Standard 8ppIIc8ble in the UK and Republic of Ireland {FRS 1021 and tho Companies Act 2006. The Heart of Kent Hospice megls the defSnillon of a public benefit entity under FRS 102. Assets and liabilities are initially recogni$8d at historical cost or transaction value unless othetwise stsled in the relevant accounting poli¢y. The Consolidated slalement of financial acliwlies ISOFAI and Consolmdaled balanc8 shoel consolidate the financial statements of the Company and tts subsidiary undertakings. The results of the substdiarie8 are consolidated on a line by line basis. Th8 Company has tskan advantage of the exemption allowed under section 408 of the Companias Act 2006 and has not presented Its own Slalement of financial 8diviti8s in th8s8 financial statements. Thè Companys net movement in fvnds for the year was £919,30012021-. £1,025,710). 2.2 Golng Concern The Trustees hava assassad that there are no significant doubts in the Wmpan5 ability to contlllug as a going concern. As a result, the financial statements have been prepared on a going coneem basis. Page 25
THE HEART OF KENT HOSPICE IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 Accounting pollcies {contlnuedl 2.3 Income AJI income is recognised once the Company ha5 ntitrnent to the income. il is probable that the income will be received and the amount of income receivable can be measured reliably. Income tax recoverable in latiOn to Investment income is renised 8t the time the investment income is receivable. No amounts are included in the financial ststemenls for Senri5 donated by volunteers, or the free use of facilities wherè the value of the gift cannot be measured reliably. 2A Expondlture Al resources expended ar9 accounted for on an accruals basis. Charitable activlues inGludo the St5 of SeNiS and support costs. Costs of Generating Funds include fundraising. publicity costs and nonrycharilable trading actiwties together wth their related support costs. Support costs are allocated across non-charilable and charitable activities on a pro-rata basis guided by the value of attributsble Gosts, being a measurement considered representative of the spe¢ffic input into 88¢h activity. The irrecoverable element of VAT is inclL¢ded with the item of expenses to vA)i¢h il relates. Fundraislng costs are those incurred in seeking voluntary ¢onlribution8 and do not include the costs of dissemlnallng infomation in support of the charitable actlvities. Support Wsts are those costs Incurred direcuy in support of expenditure on the objectives of the company. Exp8ndlture Is rgcognised once there is a legal OT construGtfjve obligation to tran¥fer economic bengfit to a third party. il is probable that a transfer of economic b&nefSts will be required in settlemant and the amount of the obligation can be measured reliably. Expgnditure is classified by a¢tivity. The costs of each activity are made up of tho total of dlrect costs and shared costs. including SUPPOrt ¢osts involved in undertaking each activity- Direct costs attributable to a single activity are allocated directly to that activity- Sharetj costs which Contribute to more than one activity and support costs which are not allributable to a single acb'vity a apportioned between those activities on a basis consistent wth the use of resources. Central staff costs are allo¢aled on Ihe basis of time spent, and depratIOn charges allocated on the portion ol the asset's use. Expenditure on raising ftjnds includes all expenditure incurred by the Group to raise funds for fts charitable purposes and includes costs of all fundraislng activities evenls and non-ch8ritsble trading. Expenditure on charitable activities i8 Incued on dIrllY undertaking the actiwties which further the Group's objectives, as well as any associated 5UPPOrt costs. Page 26
THE HEART OF KENT HOSPICE (A company Ilmited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 Accountlng pollcles lcontinugdl 2.5 Government grants Goverriment gr8nts rel8tins to tangible fixed assets a treated as deferred sneome and released to the Consolidated ststemenl of financial activities ovèr the expected useful lives of the assets concerned. Other grants are credited to the Consol¥Jaled statement of linancial activitEs as the related expenditure is incurred. 2.6 Interest ra¢&ivab Interest on funds held on deposit is included when rec8ivable and the amount can be mgasurgd reliabty by the Group.. this is normally upori notification of the Interest paid or payable by the Institubon wlth whom Ihe funds ara deposited. 2.7 Taxatlon The Company is considered to P&88 the tests set out in Paragraph 1 Sch8dulg 6 of the Finance Acl 2010 and therefore il meets the definition of a charitsble company for UK corporation lax purposes. Accordingly, the Company is potentially exempt from iaxalion in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of th8 Taxation of Chargeable Gains Act 1992. to the ext8nl that such income or gains are applied exclusively to charitable purposes. 2.8 Tangible flxed assets and dopreclatlon Tangible fixed assets costing £1,000 or more are c8Pit8lised and recognlsed when futsjre economlc benefits are probabl& and the cost or value of the asset can be measured reliably. Tangible fixed assets are IniallY reccgnised at cosL After re¢ogniti¢)n, under the cost model. tangible fixed assets are rneasured at cost loss accumulated depre¢ialion and any accumulated impairment losses. All costs IncU8d lo bring a tangibl8 fixed asset into its intended working condition should be induded in th8 measurement of cost. Depreciallon is charged so as to allocato the cost of tangible fflxed assets less theSr resldual value over their estimated useful Ilves, using the slraight-llne method. Depreci8tion Is provided on the followng basis.. Land and buikdings H05pi¢8 building Motor vahicles Fixiures and fittings Computer equipment on buildings. land not depreciated 2/& 25¥. 20Yo - 30% 33% 2.9 Investmonts Investments in subsKliaries are valued at cost less provision for impairmènt. 2.10 Stocks Stocks are valuèd at the lower of cost and n9t r&81isable valua after making due allowance for obsolete and slow-movlng si(Kks. Page 27
THE HEART OF KENT HOSPICE IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 Accounting pollcles {continuedl 2.11 Debtors Trade and other debtors ar8 rvognised at the setttement amount after any trade discount offered. Prepayments are valued at Ihe amount prepaid net of any trade discounts due. 2.12 Cash at bank and in hand Cash al bank and in hand includes cash and short-lerm highly liquid investments with a short malurtty of thr88 months or less from the dale of acquisition or opening of the deposlt or similar aGcounl. 2.13 Llabllltlgs and provlslons Liabllities and provlslons ar9 re¢ognised when there is an obligation at the Balance sheet date 8$ a result of a past event, tt is probable that a transfer of eGonomic benefit will be required in settlement. and the amount of the settlemèril can be ests"maled reliably_ Liabilit$ aré rècognis8d at th& 8mount that the Company anticipates il wll pay to settle the debt or the amount il has reiVed as advanced payTnenls for the goods or services il must provide. Provisions are measured at the best estimate of the amounts required to settle the obligatson. Where the effect of the time value of money is material. the provision is based on the present value of those amounts, discounted at the pre-tsx discount rale that reflects the risks specific to the 1Sability- The unwinding of the discount is recognised in the Consolidated slalement of financial activities as a finance cost. 2.14 Doferred taxation Full provlslon Is made for deferred tax assets and liabilities arising from all tSming differenGes ts888n th6 recogntbon of gains and losses in the financ1 statements and recognition in tho tsx computation. A net deferred tax asset is recognlsed only If It can be regarded as more likely than r1 that the will be suitable taxable surpluses from which the future reversal of the underlying timing drfferences can be deducted. Deferred lax assets and liabilities are ¢al¢ulaled al the tax rates expected lo bè effecllve at the Ume the timing diff8rences arts expected to reverse. 2.15 Financial instruments The Group only has financial assets and financial liabilities of a kind th81 quallfy as basic fmancial instruments. Basic flnancial Instruments are Initially recognlsed al transaction value and subsequenlly measured at their selllement value with the exception of bank loans which are subsequenlly me85ured al amortised cost using the efieclive interest method. 2.16 Oporatlng lèas Rentals paid under operating 16ases ara chargad to the Consolidated slalement of financial activitlès on a straight line basis over lh8 lease temi. Page 28
THE HEART OF KENT HOSPICE IA company limitgd by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 Accountiny policies Icontinuod) 2.17 Penslons The Group operates 8 defined contribution pension s¢herne and the penslon charge represents the amounts payable by the Group to the fund in respect of the year. Tho Group also contributes to tha National Health Servlce Scheme for some of Its employees. However, the scheme is a multi employer defined benefit scheme and the Group is therefore unable to identify its share of the underlying assets and liabilities. 2.18 Fund accounting Genaral funds are unreslricled funds which are available for us8 at the discrellon of the Trustees in furtherance of the general objectives of the Group and which have not bggn dgslgnated for oth purposes. Designat8d funds compris8 unrestricted funds that have been set aside by the Trustees for parttcular purposes. The aim and use of each designated fund is set out in the notes lo the financial statements. Reslricled funds are funds which are to be used in accordance th specific r&51Ticlions imposed by donors or which have been raised by the Group for particular purposes. The costs of raising and administering such fijnds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes lo the financi81 statements. Investment income, gains and losses are allocated lo the appropriate fund. Estimates and judgments are continually evalLJated and are based on historical experienc8 and other factors, including expectations of future events that are believed to be reasonable under the ¢lrcumslan¢es. Critical accounting estimates and assumptions: The Gompany maK85 estimates and assumptlgns concernlng Ihe fuiure. The resuiung accountlng ostimales and assumptions will. by d8finition, seldom equal the related actual resuts. Th8 estimates and assumptions that have a significant risk of causing a material adjustment lo the carrying amounts of assets and liabilities within the next financial year are discussed below. Page 29
THE HEART OF KENT HOSPICE (A Company Ilmlted by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 Crltl¢al accountlng estlmates and areas of judgment Estimates and judgments are continually evaluated and are based on historical experience and other factors. including expectations of fvture events that a believed to be rgasonable under the clr¢umstancg$. Critical accounting estimates and assumptions.. The Company make5 estimates and assumptions concerning the future. The resulting 8¢counling estimates and assumplions will, by definition. seSdom equal Ihe related actual results. The estimates and assumptions that have a sign[fan1 risk of causing a material adjustment to the carrying amounts of assets and liabilities within th8 next fin8ncial year are discLJssed below. Tangible fixed assets.. tha directors annually assess both the reskjual value of these assets and the expeclod useful lrfe of such assets. Details on the expected useful lives of assets aro reflectsd in the depreciation accounting policy in note 2.8. Page 30
THE HEART OF KENT HOSPICE (A ¢ompany limited by guaronte•l NOTES TO THE FINANCIAL STATEMENTS FOR THEYEAR ENDED 31 MARCH 2022 Income from donation5 and legacles Unrestricted Restricted funds funds 2022 2022 Total funds 2022 Donations 1.218.459 696.687 981.079 1,609 102,148 17.100 1.235.559 696.687 1.017.454 678,434 196.579 Legacies Grants COVID-19 funding Trusts 36.375 676.825 94,431 2.999,982 824,731 3.824.713 The restricted funds for COVID-19 income amounts to £678,434 which is made up of £676.825 funded from Hospice UK and £1,609 relating to fudough income. Unrestrfcted funds 2021 Resthcled funds 2021 Total funds 202t Donations t,273,759 655,264 977,770 324.862 71.017 11.000 1.284,759 655,264 986,470 1,384, 103 271, 138 Legaci8S Grants COVID-19 funding Trusts 8,700 1,059.241 200, 121 3,302,672 1.279.082 4,581.734 Income from charitable activiti•s Unr•stricted RÈ$tricted funds funds 2022 2022 Total funds 2022 Income from charttable activities 671,551 7,550 679.101 Page 31
THE HEART OF KENT HOSPICE IA company Ilmlted by guarnntee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 Income from char]table actlv5tles (contlnued) Unrestricted funds 2021 Total lunds 2021 Income from charitable actwilies 280.521 280,521 Incomo from other trading activitie Sncome from fundrnlslng evonts Unrestrlctod funds 2022 Totsl funds 2022 Total fvnds 2021 Hospice fundraising irtMe- even18 47,869 47,869 35,833 In 2021, all of the income from fijndraislng activities was attrfbulable to unrestricted funds. InGorne from non charitabl• tradlng adlvltl8s Unrestrlcted funds 2022 Total funds 2022 Tolal runus 2027 Lottery income Trading shops and ebay 341,784 1,520,589 341,784 1.520,589 337. 179 513.735 1,862,373 1,862.373 850,914 In 2021. all of the income from non charltabl8 trading actlvillos was attributable to unrestrfcled funds. Page 32
THE HEART OF KENT HOSPICE {A company Ilmlted by guarante¢} NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 Inv93tment income UnTestri¢ted fund5 2022 Total funds 2022 Total funds 2021 Interest receivable 889 889 607 In 2021, all of the income from inveglment activities was aitributsble lo unrestricted funds. Othw Incoming resources Unrestricted funds 2022 Total funds 2022 Total funds 2021 Insurance claims r8caivable Gas reclaim 5,258 1,429 5.258 1.429 233,575 6,687 6.687 233.575 In 2021. all other incomlng resources were attributable to unrestricted lunds. Expenditure on raising funds Costs of ralsing voluntary income Unrestrlcted funds 2022 Total funds 2022 Total ftinds 2021 Events and other fundralslng costs Allocated centrally Incurred support Costs Wages and salaries Social securty Pension contributions 71,847 81,554 328,474 31,407 10,413 16,444 71.847 81.554 328.474 31,407 10.413 16.444 57.373 40.598 279. 728 28,585 9.851 14.512 Depreciation 540,139 540.139 430,647 Page 33
THE HEART OF KENT HOSPICE (A Company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 Expandlture on raising funds l¢ontinuedl othor tradlng expenses Unrestricted funds 2022 Total funds 2022 Total funds 2021 Lottery expèndlture Tradlng shops and ebay expenditure staff costs D&pCiali0n 136.839 687,487 496,453 17,112 136,839 687,487 496,453 17,112 125, 129 471, 188 452.734 19.248 1,337,891 1.337,891 1.068,299 In 2021, all expgnditure on raising funds were attributable lo unrestricted funds. 10. Analy$ls of expondlture on ¢horltable activities Summary by fund typo Unrestrlcted fund$ 2022 Rostrfctsd funds 2022 Total 2022 Inpatient servlces Family Support servicas Community setvices Education department 1,851.559 181.596 504,521 88,200 937,395 8,371 43,588 2.788.954 189,967 548,109 88,200 2,625.876 989,354 3,615.230 Page 34
THE HEART OF KENT HOSPICE {A company limited by guaranteo) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 10. Analysis of gxpenditure on charitable activiti {continued) Summary by fund type (continued) Unr6stricted funds 2021 Restricte fvnds 2021 Total 2021 Inpatlenl services Famlly Supporl s8rvices Community services EduGation department 1,680, 155 183.518 341,232 83, 199 993. T47 2.673.902 183.518 524.956 83.199 183, 724 2,288, 704 1, 177,471 3,465.575 Summary by èxpenditure type staff costs Depreclatlon Other costs 2022 2022 2022 Totsl 2022 Inpatient services Famlly Support seNice8 Community sejwlces Education department 2,126,S40 159,814 467,097 76,359 84,905 5,783 16,686 2.685 577,509 24,370 64.326 9.156 2,788.954 189,967 548,109 88.200 2.829,810 110.059 675,361 3,615.230 Staff Gosts Depreciation Oth8r costs 2027 2021 2021 Total 202Y Inpatient services Family Support seNices Community services Education depBrtment 2,063.371 155.819 424,439 72.441 85.919 6.185 21,893 2,804 524,612 21,574 78.624 7,954 2.673,902 183,518 524.956 83,t99 2,716,070 116,801 632, 704 3.465.575 Page 35
THE HEART OF KENT HOSPICE IA company Ilrnited by guarantsel NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 11. Analys55 of expenditure by activitles Activities undertaken dlrectly 2022 Support osts 2022 Total funds 2022 Inpatient S8Tvices Family Support servicos Community seryices Education department 2,282,938 155,500 448,664 72,196 506,016 34.467 99.445 16,004 2.788,954 189.967 548,109 88.20Q 2.959,298 655,932 3,615.230 Aclivits8$ undertaken directly 2021 Support costs 2021 Total funds 2021 Inpatient services Family Support seNices Communlty Services Education department 2,195,762 149,096 403, 175 61,594 478, 140 34,422 121,841 15.605 2.673,902 183.518 524.956 83. 799 2,815.567 650,008 3,465,575 Page 36
THE HEART OF KENT HOSPICE {A company limited by guarantee} NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 11. Analysis of exponditure by activitie5 (continued) An8ly$is of support Costs Famlly Support C¢mmunlty Edu¢*lon sèrvlces $èrvl¢¢$ d&partm¢nt 2022 2022 2022 Inpatlgnt sér¥l¢e$ 2022 Total fund$ 2022 staff costs Depreciation Professional fees Audlt and accountancyf8es IT Support Premises costs 154,628 84,905 15.906 6,269 100,679 72,053 28.315 43.261 10,532 5,783 1.083 427 6,858 4,908 1,929 2.947 30,388 16,686 3.126 1,232 19,786 14,160 5.565 8.502 4,889 2,685 503 198 3,184 2,278 898 200.437 110.059 20.618 8.126 130.$07 93.399 36,707 56,079 Other support Costs Repairs and maint8nan¢è 1.369 506,016 34.467 99,445 16.004 655.932 Family Support Commun services services Inpatient S8rriC8S Education department 2021 Total funds 2021 2021 2021 2021 staff costs Depreclation Professional fees Audit and accountancy fees IT Support Premises costs Other support costs Repairs and maintenance 157,915 85.919 2,593 4,832 94.130 56,328 34,0(M 48.419 70,936 6, 785 187 38,711 27,893 661 4,958 2,804 85 158 3,072 1,839 1, 109 1,580 206,520 116,801 3,526 6,569 127,965 76.577 46,227 65,823 348 1.231 23,987 14,355 8.065 72.338 6, 776 4,055 2,449 3.486 478, f40 34,422 121.841 15,605 650,008 Included within support costs are govemance costs totslling £19,44112021- £23,172). Page 37
THE HEART OF KENT HOSPICE IA company Ilmlted by guaraDt•o} NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 12. Audltors. remuneration 2022 2021 Fees payable to the Comp8nYs auditor for the audit of the Compan5 annual 8ccounls 7.598 6,875 Fees payable to the Company's auditor In respect of.. The audit of the Heart of Kent Hospice Promotions Limited annval accounts The audit of the Heart of Kent Hospi TTadlng Limited annual a¢counts All laxatlon advisory seNices not included above All other non-audit seNces 1.795 2,856 1,445 2,577 1,444 3,282 1.594 2.307 Page 38
THE HEART OF KENT HOSPICE IA ¢ompany limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 13. Stsff ¢o$t$ Group 2022 Group 2021 Company 2022 Company 2021 Wages and salariès Social security costs Contribution to defined contribution pension schemes 3,225,002 280,124 3,019,886 288,428 2,776.745 250,845 2,609, 722 262,955 191.431 178,654 172,514 161,557 3,696.557 3.486.968 3,200,104 3,034,234 Page 39
THE HEART OF KENT HOSPICE IA Company limlted by guarantee} NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 13. Staff costs Icontlnued} The average number of persons 8mployed by the Company during the year was as follows- Group 2022 No. Group 2021 No. Fundraislng Inpatient servSc8S Community seryices Education department Management (including clinical manager and faciloties leaml Family support services Financa Catering Trading Gompanies Dementia 41 14 39 13 22 20 26 25 139 133 The number of employees whose employeo benefits {ex¢luding employer pension costs) exceeded £60.000 was.. Group 2022 No. Group 2021 No. In tho band £60.001 - £70.?0 In the band £70,001- £80.000 In the band £80,001- £90,000 In the b8nd £90,001- £100,000 In the band £100,001- £110,000 PensSon contributions paid in respect of higher paid staff total £15,011 12021- £14.6891. During the year. 16 12021 171 employees were accruing ponsions under the (Jelined contribution pension scheme, 73 {2021 - 71} under the NEST scheme and 26 (2021- 221 employees were accruing pensions under a defined benefit pension scheme. 1 under Crical medical scheme {2021- 11. The total wages and salaries includlng national in8vr8ncg paid lo k¢y management personnel during the year amounted to £410,44612021- £411,430). 14. Trustees. romuneration and expenses During the year, no Trusloes racaived any ramuneration or other beneflts {2021- £NIL). Page 40
THE HEART OF KENT HOSPICE (A company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 14. T$t$, remuneration and expons8$ l¢ontlnued} During the year ended 31 March 2022. expenses lolalling £135 were reimbursed or paid directly lo 2 Trustees (2021 £NILI. These expenses are in relation lo the Assoctation of Chairs Membership and membership of the Honorary Treasurers Forum. £400 was paid directly for Reach Volunteering, a reglstralion fee for Hospice Trustees. Page 41
THE HEART OF KENT HOSPICE IA company Ilmlted by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 15. Tanglble Ilxed assets Group Hosplco FreehDld Motor Fixtures Computer Bullding Property vehl¢le$ and fittings equlpment Total Cost or valuatlon Al 1 April 2021 Addlllons Dlsposals 3.821.525 532,469 69,874 1,442.458 75,888 1790,742} 15,120 5,881.446 3,130 79.018 1790.742} Al 31 March 2022 3,821,525 532,469 69.874 727,604 18,250 5.169.722 D•prociation Al 1 April 2021 Charge for the year On disposals 1,596,217 73.904 53.247 10.649 54,954 1,354214 9,663 46.745 1790.742) 12,532 3.071,164 2,654 143,615 1790,742) At 31 March 2022 1,670,121 63,896 64,617 610,217 15,186 2.424.037 Net book value At 31 March 2022 2,151A04 488.573 5,257 117.387 3,064 2,745,685 Af 37 March 2021 2.225,308 479,222 14.920 88,244 2,588 2,810.282 Wlthln the above assets are £37,198 (2021.. £30,618) of fixtures, fittings and equipment and motor vehldes which are held for fundraising in the trading subsidiary as opposed lo diTe¢l charttable aclivitEs. Tha value included in freehold propertyfor land that is not depreciated is £226.300 {2021= £226,300). Barclays Bank plc have a charge over the property known as Old Transport Building Royal British Legion, Aylesford, Kent ME20 7NL. Page 42
THE HEART OF KENT HOSPICE IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 15. Tangible fixed assets Icontinuedl Company Hospice Building Freehold proporty Motor Flxturas and vohicles flttlngs Total Cost or valuation At 1 April 2021 Addilions Disposals 3.821.525 532.469 9.500 1.059.076 55,327 {674,5831 5.422.570 55.327 (674.5831 At 31 March 2022 3.821.525 532.469 9,51)0 439,820 4.803,314 Depreclatlon At 1 April 2021 Charge for the year On disposals 1.596.217 73.904 53.247 10.649 4,750 2,375 988,692 39,576 1674,583) 2,642,900 126,504 1674,583) Al 31 March 2022 1,670,121 63,896 7,125 353,685 2,094,827 N•t book value Al 31 March 2022 2,151,404 468,573 2.375 86,135 2,708.487 At 31 March 2021 2.225,308 479.222 4.750 70,384 2,779,664 P89e 43
THE HEART OF KENT HOSPICE IA ¢ompany limlted by guaranteg) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 16. Flxed asset Invgstrnents Invèstments In subsidlary companles Company Co$t or valuation At l April 2021 At 31 March 2022 N6t book valug At 31 March 2022 At 31 March 2021 17. Stock$ Group 2022 Group 2021 Finished gcrt)ds and goods for rèsale 11,734 116,040 18. Débtors Group 2022 Group 2021 Company 2022 Company 2021 Due withln one year Trade dgblors Amounts owed by group und8rtakings Other debtors Prepayments Bnd accrued income 61.739 80.328 59,517 670.214 21,199 697.158 62,424 238,768 15.733 503.426 25.636 757.258 18,973 556, 184 844,633 655.485 1.448,088 820,351 Page 44
THE HEART OF KENT HOSPICE IA ¢¢mpany limitod by guaranto•) NOTES TO THE FINANCtAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 19. Current asset invostments Group 2022 Group 2021 Company Company 2021 2022 List8d inv8Stmènts 307,697 307,697 307,697 307,697 20. Creditor5: Amounts falling du• wlthln on¢ yèar Group 2022 Group 2021 Company 2022 Company 2021 Bank overdrafts Trade creditors Amounts owed lo group undertakings Other eredilors Accruals and deferred income 6,028 155,362 6,920 156,575 95.514 19.738 69.581 345.854 107. 154 70.080 454,670 79,610 741.985 79.244 605,530 686.140 985.090 530.685 791.928 Deferred income al th& year gnd lotalled £160,228 12021 £504,055). £160,228 was deferred in the urrent year and £505,055 was released. Deferre¢J income relates lo funding for future periods and lottery subscriptions paid in advance. 21. Dof•rr taxation Group and Company 2022 2027 At the beginning of the year Chargellcfftditl for the year 1.169 3.018 3,654 (2.385) 4.187 1.169 Page 45
THE HEART OF KENT HOSPICE IA company Ilmlted by guarnntg9} NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 21. Deferred taxatlon Icontlnuedl The deferred lax liability is made up as follows: Group 2022 Group 2021 AClerated c8pitsI allowances 4,187 1. 169 (4.1871 f1, 169) Page 46
THE HEART OF KENT HOSPICE IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 22. Statement of funds statement of funds- currènt year Balance at Balance at 31 March 2022 Transfers Galnsl inlout (Lossesl 2021 In¢omo Expandlture Tax Unrestrlcted funds Deslgnated funds Fixed asset hjnd 2,295,692 410,417 2,706.109 General funds General fund 2,670.025 Trading subsidiary fund 3.721.606 {3,166.015} 133,518 7,697 3.366,831 241,S75 1.867,745 11,337.891) {3,018) {513,085) 255,326 2.911.600 5.589.351 (4,503.906) 13,0181 {379.5671 7,697 3.622.157 Total Unrestri¢t8d funds 5,207.292 5.589,351 14.503.906) 13,0181 30,850 7.697 6,328.266 Restricted funds Restricled Funds- 815 fvnds 239.514 832.281 1989.3541 130,850) 51.591 Total of funds 5.446,806 6.421,632 {5.493,2601 13,0181 7.697 6.379,857 Page 47
THE HEART OF KENT HOSPICE IA ¢ompany Ilmlted by guarante¢} NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 Stalemenl of funds {contlnued) statement of funds - prior year Balan at 31 March 2021 Balance 81 7 April 2020 Transfers in/out Incomo Expenditure Tax Unrestrlcted funds Daslgnatod funds Fixed sssel fund 2,376,915 (81,223) 2,295.692 General funds General fund Y.636.433 3.305, 128 (2.685,75f) 414.215 2,670,025 Trading subsidiary fund 246,237 1,398,994 (1, 101,299) 2,385 (304, 742) 241.575 1.882,670 4,704, 722 (3.787,050) 2.385 109.473 2,911,600 Total Unrgstricted fund$ 4.259.585 4.704,122 (3,787,050) 2,385 28,250 5,207,292 R¢stri¢tod funds Restricted Funds all fvnds 166.173 1,279,062 (1, 177,4T1) (28,250) 239,514 Total of funds 4.425,758 5,983, 184 {4,964,521) 3,385 5,446,806 Page 48
THE HEART OF KENT HOSPICE (A company limit8d by guaTantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 22. Statement of fund5 Icontlnued) Designated funds - The Fixed Asset fund has been strt up to identify those funds that are not free funds and it represents the net book value of tangible fixed assets which were acquired with Testricted funds. The transfers belween the unrestricted g8neral fund, $tricted fund and the fixed asset fund represents the net movement in the net book value of fixed assets in the year. Restricted funds These represent donations, legacies and trusts received for specifi¢ projècts Bnd causes. Transfers in the year are in respect of depreciation and expenditure on age well funding. The Mocklon Training and Education Centre has b8en transferred lo designated funds in the year because the Training and Education, D8menlia and Care Home teams now ulilise this space on a permanent basis and cannot therefore be classified as a free fund. 23. Analysls of net assets between funds Analysls of net assets between funds - Gurrent year Unrestricted Restricted funds funds 2022 2022 Total funds 2022 Tangible fixed assets Current assets Creditors due within one year Provislons for liabilities and chargas 2,745,685 4,272,908 1686,140} 14.187} 2,745,685 4,324,499 1686,140) {4187) 51,591 Total 6,328,286 51,591 6,379.857 Analysls of not assets b•tw•on funds - prior year Unroslricled funds 2021 Restricted funds 2021 Total funds 2027 Tangible fixed assets Current assets Creditors due within one year Provisions for liabilltles and charges 2,810,282 3,383,269 (985,090J (1. 169) 2.870,282 3,622,783 (985.090) (t, 169) 239.514 239.514 5,446,806 Total 5,207,292 Page 49
THE HEART OF KENT HOSPICE {A company limltod by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 24. Reconclllatlon of net movement In funds to net cash flow from operaling activities Group 2022 Group 2021 Nel income lor the year (as per Statement of Financial Ac1]v8$) 933.OS1 1,021,048 Adjustmènts for: Depreciation charges Gainsl{lossesl on investments {Incr8aselld¢crease in stocks {Increaselldecrease in debtors In¢reaselld8creasel in creditors Investment income InGreas81ldecreasel in provisions 143,615 17,6971 104.306 1189,1481 1298.0581 18891 3.018 150,560 (6, 754) (16, 756) 571,935 (607) (2,385) Net ¢a$h provided by operating activities 688.198 1,717,041 Analys1$ of ¢a$h and cash equivalents Group 2022 Group 2021 Cash in hand Overdraft facilty repayable on demand 3.160,435 {6.028) 2,851.258 (6,920) Total ca3h and cash equlvalents 3.154.407 2.844.338 Page 50
THE HEART OF KENT HOSPICE {A cornpany limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 26. Analysis of changes In nèt debt Changès in market valu¢ and èxchange At 1 April rate At 31 March 2021 Cash flows movements 2022 Cash at bank and in hand Bank overdrafts repayable on demand Liquid investments 2.851.258 {6,9201 309,177 892 3.160.435 {6.0281 307.697 300,000 7,697 2.844.338 610.069 7.697 3.462.104 Page 51
THE HEART OF KENT TrIOSPICE IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 27. Penslon commitments The charity operal8s thr¢e12021 three} defined contribution pension schemes available to the maiorily of ils pemanent employees. The scheme funds are adminislered by Trustees of the pension scheme and are independent of the charity's finances. During the year. £85,595 12021 £84.1341 employers contributions were made. Contributions totalling £NII 12021 £7,219) were payable lo the funds al the balance sheet date and are included in dItorS. The charity also makes contribLrtion$ to the National Health Scheme for certain employees, which is a defined benefit scheme. However the scheme is a multiple employer scheme and the charity is unable to Identify its share of the underlying assets and liobilities. The last report by the Government Actuary covered the period up untll 31 March 2016. as publlshed 15 February 2019. More information is available at.. - www.gov.uklgovemment,' and - https.'IlvN.nhsbsa.nhS.kIPensl0ns1ValUatl0n.aSpx. The Retkort recommends a stsndard contribution of 20.6°h to be made by the employer and the employee ontribulions to be made on a tiered scale from 5°h lo 10¥k of their pensionable pay dependlng on Ihelr total earnings. The actual rate charged to the employer for the current year was 14Q/o due to the actual rale excluding the cost of pension InCaSe$ in line the Retail Prfces Index. the cost being mel by the Exchequer. and the notional surplus. The Hospice's contributions lo the National Health Service Scheme represent a minor proportion of the payments into the scheme. The charge included within the ConsolTdated Statement of Financial Activities in¢lud6s contributiorls payable to this scheme of £106,52612021 - £94,608). Page 52
THE HEART OF KENT HOSPICE IA company limited by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THEYEAR ENDED 31 MARCH 2022 28. Op•ratlng lease commitmènts At 31 March 2022 the Group and the Company had commitments to make fvture minimum lease payments under nOn-CanlIable operating leases as follows.. Group 2022 Group 2021 Not lator than 1 year Later than 1 year and not later than 5 yo?rs Later than 5 years 209.731 356.576 256, 772 492, 712 18.042 566,307 766,926 Thè following lease payments have been recognised as an expense in the Statement of financial aCvIeS.. Group 2022 Group 2021 Operating lease rentals 253.555 251,667 Related party Iransactlons During the year, the Charity re¢eived £480,08212021- £304,742) from other group companies in respEct of donations and £33,000 12021 £33,000) in respect of management charges. At the balance sheet date, the Charity was owed £650.47812021- £238,768) from related p8rbes. Page 53
THE HEART OF KENT HOSPICE (A ¢ompany limlted by guarantee) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 30. Controlling party Thara is no ultimate controlling party. 31. Prfnclpal 5ub$idlaYi•s The follo¥Mng were subsidiary undertskings of the Company. Registered officè or principal Class of pla¢e of business shares Name$ Company number Holding Heart of Kent Hospice Promotions Lirniled Heart of Kent Hospice Tr8ding 02547686 Llmited 03233475 Preston H811, Aesf0rd, Maidslone, Kent, ME20 7PU Preston Hall, Ae$ford, hAaidstone, Kent. ME20 7PU Ordinary Ordinary 100° Th8 financlal results of the subsidlarles for the year re.. Names In¢ome Expènditure ProflU(Lo$$} I Surplusl (Defi¢itl for the year Net a$59ts Heart of Kent Hospice Promotion$ Limited Heart of Kent Hospice Trading Llmited Both subsidiaries have the same regSstergd office, being the same as Heart of Kent Hospice found on the reference and administrative details page of these financial slatemenls. 341,815 1137,839) 203.976 3,106 1,525,930 (1,236,073 289.857 252.223 Page 54