**20 Annual Report 20**
## **A YEAR OF RESILIENCE**
St Luke’s Hospice (Harrow and Brent) Limited Charity No. 298555 Registered Company No: 02141770
**Making Every Moment Matter**
**Reference and Administrative Information**
**Contents**
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Registered Name St Luke’s Hospice (Harrow & Brent) Limited
Message from the Chairman, Gillian Schiller and Chief Executive, Alpana Malde 4
Registered charity 298555
Number Trustee’s Report 6
Registered Company 02141770 The size of our care 6
Number
What we said/what we did - Mission Strand - ‘Reach more people’ 8
Registered office and Kenton Grange, Kenton Road
principal address Harrow, Middlesex HA3 OYG
What we said/what we did - Mission Strand - ‘Constantly improve what we do’ 10
Trustees Dr G Schiller – Chairman
C Bennett What we said/what we did - Mission Strand - ‘Extend our impact through 12
L Bennister collaboration, innovation and education’
What we said/what we did - Mission Strand - ‘Be an accountable and
N Brier 14
sustainable organisation’
C Brodie
R Elkeles Resigned 28 January 2021 Our supporters 16
C Glenn
Operational report 18
P Hill – Appointed 13 August 2020
M Lewis - Resigned 22 January 2021
Financial review 21
S Livingston – Appointed 13 August 2020
R Majus Overview 21
C Melia-Tompkins
Risk management 22
N Radia – Appointed 13 August 2020
S Shah
Pension liability 24
R Thakrar – Appointed 13 August 2020
G Wynne Reserves policy 24
Senior Staff A Malde Chief Executive Officer Investment policy 25
Dr C Daniels Medical Director
Funding 26
C Gell – Resigned 24 July 2020 People Director
G Jones – Resigned 15 July 2020 Head of Retail Tangible fixed assets 26
U Reeve Director of Patient Services &
Going Concern 26
Registered Manager
H Richardson – Appointed 1 June 2020 Director of Fundraising Structure, Governance and Management 26
P Sundaresan Director of Finance and Facilities.
Head of Retail Senior Executive Remuneration 28
N Villazan – Appointed 1 September 2020 Head of HR & Volunteering
Statement of Trustees’ Responsibilities 29
R Wagstaff – Resigned 19 February 2020 Director of Fundraising &
Communications Independent Auditor’s Report 30
Principal Bankers Allied Irish Bank (GB) 33-35 Wembley Hill Road, Wembley, Middlesex HA9 8AS Consolidated Statement Of Financial Activities 34
Auditors Haysmacintyre LLP - 10 Queen Street Place, London EC4R 1AG Charity and Group Balance Sheets 36
Solicitors Curry Popeck - 380 Kenton Road, Harrow, Middlesex HA3 8OP Statement of Consolidated Cash Flows 37
Investment Managers Rathbone Investment Management, 8 Finsbury Circus, London EC2M 7AZ Notes to the Financial Statements 38
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2020 Annual Report 3
2 St Luke’s Hospice
**Message from the Chairman, Gillian Schiller and Chief Executive, Alpana Malde**
Welcome to St Luke’s Annual Report 2020. We would like to thank all our donors and supporters, our staff and volunteers who have helped us successfully navigate a year of crisis.
## **2020 – A year like no other**
As reported in our Annual Report 2019, we took steps in 2018/2019 to address a significant financial deficit that threatened our future survival. As we entered 2020, we had reduced the deficit to a manageable level and were entering a period where we were able to consolidate and start making plans for the future.
In the first quarter of 2020, it was apparent that we were in the middle of a crisis the likes of which none of us had experienced. St Luke’s was in the eye of this storm as North West London was the epicentre of the first wave of the pandemic. When the Prime Minister announced that we were going to lockdown, we had to rethink our working practices to continue to safely look after people in our community who needed our care and support more than ever.
We quickly found our feet and embraced new technology and ways of working, which enabled us to reach people in the community who needed us, while supporting the local NHS by enabling more people to be cared for at home by our services.
In the hospice building, we admitted as many patients as we could to relieve pressure on hospitals by admitting patients 7 days a week and till 11 pm every day.
We developed a number of educational resources such as videos for carers, Zoom sessions that staff in other settings could access. These allowed better care for people at a time when the NHS was completely overwhelmed, with its resources overrun by those who urgently needed care and treatment.
As you will see on the following page, we looked after more people than ever before both in beds in the hospice building, in the community and in people’s homes. We are extremely proud that we were able to support our colleagues in the NHS by reducing pressure on services that were at breaking point.
We are also very proud of the fact that we enabled families to safely see their loved ones who were being looked after in the Hospice so that they could spend time with them and say farewell at the end of their life.
Financially, we braced ourselves for significant impact. We had to cancel all fundraising events, our shops were closed, and as we could not carry out any face to face activities our
other fundraising activities were severely curtailed. Sadly, we furloughed a number of staff. However, the whole Hospice team came together as one with everyone doing what it took to get things done. Thank you to all staff and volunteers who stepped up superbly over this last year. We could not have done it without you.
Sadly, due to the pandemic a number of our volunteers have been unable to return to their roles. This has impacted all areas of the Hospice and in particular, our shops. We wish to appeal to all of you to come forward and volunteer with us. Volunteering at St Luke’s is fun and gives you the opportunity to feel more connected to people in your community. A number of volunteers in our shops go on to become employees as their skills develop. Come along and try it out. Contact volunteering@stlukes-hospice.org for more details.
The local community were absolutely fantastic and supported us in many ways. When we asked for PPE, we were inundated with it. The morale of staff was boosted by the donations of delicious food that arrived each day. When we put out a crisis appeal we had a phenomenal response. It is this outpouring of love and support that has sustained us and kept us wanting to do as much as we could. Thank you one and all, we are humbled by your affection for the Hospice.
Finally, we need to recognise that the Government supported the Hospice sector during this last year, with the Chancellor making £200 million available across the country to hospices, to enable us to support the NHS. We have therefore recorded a financial surplus of £2m for 2020 which will stand us in good stead as we emerge stronger and more resilient as an organisation. We are now setting out our strategic plans for the next 3 years. We will continue to do all we can to be here, doing ever more for our local community so that local people have the best possible last phase of life.
Gillian Schiller Chairman
Alpana Malde
Chief Executive
2020 Annual Report 5
4 St Luke’s Hospice
**The size of our care**
During 2020, many of our services were redesigned to ensure patients and carers were provided with safe and effective care during the COVID-19 Pandemic. Whilst we increased the numbers of people we supported, the way we delivered the care radically changed. We were forced to close the outpatient and day services in the Woodgrange Centre; we provided as much of this as we could virtually and visited patient’s homes only when this was essential to their care.
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2020 2019
Total patients supported 1,824 1,677
Days of inpatient care 3,031 2,831
Individual people who attended day care
57 193
and outpatients
Complementary Therapy and
1,602 2,496
Physiotherapy sessions
Patients supported by Hospice at Home 508 384
Telephone calls, assessments and rapid 299 visits 558 visits
response visits made by our Pall 24 6,585 telephone 6,409 telephone
teams calls calls
Patients supported by Community
548 478
Specialist Palliative Care Team
777 visits 1,423 visits
Care provided by the Community
10,383 telephone 5,062 telephone
Specialist Palliative Care Team
calls calls
Social Work sessions 1,766 1,980
Bereavement Sessions 108 279
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Ethnicity monitoring to embrace the diversity of the area we serve and
ensuring promotion of equal access to hospice services.
St Luke’s % Brent % Harrow %
Indian 300 16% 18.6% 26.4%
Asian other 95 5% 9.8% 11.9%
Pakistani 10 0.5% 4.6% 3.3%
Chinese 11 0.6% 1% 1.1%
Black Caribbean 90 5% 7.6% 2.8%
Black African 25 1% 7.8% 3.6%
Black other 15 0.8% 3.4% 1.8%
White British 467 26% 18% 30.9%
White Irish 76 4% 4% 3.1%
Other White 99 5% 14.4% 8.2%
Mixed 19 1% 5.1% 3.9%
Other 55 3% 5.7% 3%
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We have not included people who preferred not to provide ethnicity information. Notes: Comparative data from 2011 census
2020 Annual Report 7
6 St Luke’s Hospice
**What we said/what we did Mission Strand – “Reach more people”**
## **During 2020 we:**
Recruited a new Wellbeing Manager post to develop and establish new upstream models of care in the hospice building and out in the community. Despite COVID-19, we have implemented new virtual services including art, music, physiotherapy and emotional and social support.
Extended the hours of support provided by the Brent Community Palliative Care Team to 7 days a week from 8am till 6pm. This team previously worked 5 days a week from 9am till 5pm.
Appointed our first Social Prescribing Link Worker in partnership with other local charitable organisations and Harrow Primary Care Networks. This post works across the hospice and out in the community signposting and referring people to appropriate services, reducing social isolation and loneliness, keeping people living as well as possible. The service has exceeded expectations, with our link worker supporting 295 patients and carers between April and December 2020, (target 200) with issues relating to mental health and other concerns.
## **In 2021, we plan to:**
- y To work on improving the ability of the inpatient unit to meet demand for beds.
- y We will continue to develop more initiatives to enhance people’s wellbeing and improve their quality of life.
- y Support people with palliative care needs who are experiencing isolation so that they are able to access practical help and emotional support.
- y In order that people in Care Homes experience better end of life care we will seek to work with local partners to develop a “hospice-light” service so that we are able to reach more people in these settings by supporting staff to achieve better outcomes for people they care for.
- y We aim to review and increase access to our bereavement service by 50%, and also to make the service more timely so that support is in place within 8 weeks of bereavement.
2020 Annual Report 9
8 St Luke’s Hospice
## **What we said/what we did Mission Strand – “Constantly improve what we do” Mission Strand – ‘Constantly improve what we do’**
## **During 2020 we:**
Successfully prevented any outbreak of COVID-19 in our inpatient unit by introducing high level of infection control systems, adequate PPE provision and testing of staff, patients and visitors.
Developed and established a Clinical Quality Manager post to lead our improvement work across the organisation.
Developed and gave out new COVID-19 carer kits in the community.
Facilitated final farewell visits for family members on the inpatient unit during the COVID-19 pandemic.
Won the coveted Markel 3rd Sector development project National Award for collaborative work between our 24 hour palliative helpline and London Ambulance Service during COVID-19 and were a finalist for End of Life Care.
## **In 2021, we plan to:**
- y To improve the way we work with others to improve the impact of our services on patient outcomes and experiences
- y We will continue to evidence the impact of new initiatives such as the 7/7 Community Service and consultant on call service.
- y Work on an improvement plan to support the complex psychosocial needs of people we look after.
- y To support people to be more involved and in control of decisions about their care.
- y We will review practical issues such as transportation to and from the Hospice building for patients to improve access to our services.
- y We will review processes in our inpatient unit so that we are making our service as safe and responsive as it can be.
- y We will work to increase feedback from our patients and their families so that we continue to develop and improve services.
2020 Annual Report 11
10 St Luke’s Hospice
**What we said/what we did Mission Strand – “Extend our impact through collaboration, innovation & education”**
## **During 2020 we:**
Were recognised by the Medical Deanery for our educational capability and asked to train 3 Registrars in Palliative Medicine for the first time since the hospice was established.
Published an educational paper in an expert peer reviewed journal.
We developed the first ever hospice funded PhD Fellowship. Based in the Department of Primary and Palliative Care at Cambridge University she will research “the factors which contribute to the quality of medical care in care homes” and help our work in this area in future.
Had to cease onsite training placements for associate nurse, apprentice health care assistant, medical students and postgraduate training due to COVID-19.
Delivered Zoom training events to nearly
Trained all nurses in the inpatient unit, community services and 37 nurses in local care homes to verify expected death. This enabled speedier funeral arrangements and reduced the pressure on GPs during the pandemic.
**500**
people including GPs, care home staff, primary care colleagues, pharmacists and residents and relatives of a national care home charity.
Piloted 2 different models of Care home Workforce Skills Development for NHS Brent and NHS Harrow.
## **In 2021, we plan to:**
- y To use changes in the structure and delivery of Community Services in Harrow as an opportunity to improve patient experience by further local integration with partners.
- y To extend the reach of our current education programme both in terms of topics and geographical areas covered.
- y We will increase utilisation of volunteers in all our clinical services by developing roles to support better service delivery in all areas. Initially the aim is to have 20 new volunteers working in a variety of roles.
- y Evidence the impact of the education delivered and work towards a funded education programme to improve skills in end of life care in all settings.
2020 Annual Report 13
12 St Luke’s Hospice
**What we said/what we did Mission Strand – “Be an accountable and sustainable organisation”**
## **During 2020 we:**
Increased our net income from voluntary fundraising year-on-year by
Introduced the pay scales for the NHS terms and conditions of service (Agenda for Change) in our clinical teams.
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£167k
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A 33% increase; during an uncertain year with COVID-19, our amazing supporters stood by us.
Strengthened our relationship with NHS commissioners to become an end of life care provider of choice.
Introduced home working so that we were able to carry on functioning smoothly, while keeping our people safe.
## **In 2021, we plan to:**
- y We will continue to work with commissioners and local partners to identify new income streams and strengthen existing ones to further build our financial resilience.
- y In 2021, we will continue to build on the relationships we have worked hard to develop with supporters, both long-term and new, and we will seek new partners and supporters to join us to further our work.
- y Continue to improve the performance of our shops and improve internal collaboration between our income generation teams to maximise benefit for the hospice.
- y We will continue to develop our workforce and improve our ability to recruit and retain the best talent to support the strategic aims of the hospice.
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2020 Annual Report 15
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14 St Luke’s Hospice
**Our supporters**
We are so grateful to every one of our supporters, who enable us to continue to provide end of life care to our patients and offer support for their families – making every moment matter. Everyone who makes a contribution, through making donations to and buying from our shops, making a cash donation, setting up a regular gift, taking part in an event, supporting through their business, playing our lottery, or making a gift in their will, is helping St Luke’s to give the people we care for the best possible quality of life, each and every day. We could not do what we do without each and every one of you. Thank you.
2020 was a difficult year for everyone, and our amazing supporters were with us every step of the way; from responding so generously to our Crisis Appeal in the spring when times were so uncertain, to shopping with us when our shops were able to be open, to joining us online for the virtual events we held. We are thankful to have such a remarkable community standing alongside us.
We have a number of partners who make specific areas of our work possible, who give St Luke’s Hospice significant support that enables our team to reach more people.
We are extremely grateful to the following Charitable Trusts and Foundations who have provided substantial support to us in 2020:
Albert Hunt Trust
The Laing Family Trust
Ambaben C Nathwani Trust
The Masonic Charitable Foundation
Betty Messenger Foundation
Maximus Foundation
Middlesex Province Relief Fund
Childwick Trust
City Bridge Trust
The National Lottery Community Fund
The Dewan Foundation
Pink Ribbon Foundation
February Foundation Harrow Giving
Rank Foundation
Shree Kutch Satsang Swaminarayan Temple Sir Jules Thorn Trust
Jean and Derek King Trust
The Kingsbury Charity
We also wish to acknowledge the incredibly generous support of key supporters who prefer to remain anonymous.
2020 Annual Report 17
16 St Luke’s Hospice
**Operational report**
The charity is run in accordance with Charity Commission regulations and makes every effort to follow guidelines on best practice - aiming for excellence in everything that we do.
National standards of care are followed, such as the National Institute of Clinical Excellence guidelines, and we strive to uphold and establish best practice. Compliance and performance are reported to both Clinical Commissioners and the Care Quality Commission (CQC). The CQC undertake inspections at regular intervals, our current rating overall is good with no major cause for concern.
All facilities are managed in line with Health and Safety Executive regulation and guidance. We invest in training and developing our staff, being recognised with the Investors in People Bronze Award, and operating within ACAS guidelines. We are registered with the Fundraising Regulator, follow the Code of Fundraising Practice and adhere to Trading Standards and Gambling Commission regulations for our income generating activities.
Data Protection and the care of vulnerable people is taken very seriously and we have an Information Governance Working Group which meets regularly and also invites expert advice to ensure we care for personal data in line with Data Protection regulations, establishing the highest standards of working practice amongst our staff. Staff receive mandatory training on data protection, safeguarding and a range of other important topics. St Luke’s has successfully completed the NHS Data Security and Protection Toolkit which measures our performance against national data security standards.
## **Complaints**
Complaints are taken very seriously and followed up immediately. We strive to learn from complaints and implement changes where practical.
Clinical complaints were very low, with one complaint made during the year. The complaint covered multiple issues including, dietary needs, communication and access to televisions. We responded to the complaint with a ‘You said, we did’ approach and made improvements in a number of areas including, standardisation in the use of dietary thickener, improved discharge communication and the provision of new televisions and other entertainment options.
During 2020 there was one complaint from a supporter about their lottery direct debit, where an administration error led to the direct debit not being cancelled as requested, which was resolved quickly upon notification, and a refund was offered. We also had one complaint regarding our lottery canvassers being noisy in a residential street; we informed the company we partner with who provides this service and the team in question was given additional training.
We received thirteen complaints about our shops during 2020. The complaints were predominantly based around customer service regarding donations, fly tipping occurring outside our shops, pricing in the shops and about the responsiveness of the bookings line. The complaints were followed up and dealt with in an efficient and timely manner.
## **Conclusion**
We are proud that we have continued to be here for people who needed us during a very difficult year. As we look ahead we want to reach people earlier in their last phase of life and improve end of life care in all settings so that people in Brent and Harrow have the best possible care at the end of life. We are well placed to weather the aftermath of COVID-19 and will continue to serve the people of Harrow and Brent to the best of our ability.
2020 Annual Report 19
18 St Luke’s Hospice
**Financial review**
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20 St Luke’s Hospice
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## **Overview**
The hospice recorded a surplus of £1,993k (2019 – deficit of £181k) for the year. The surplus was generated mainly on account of the following: (a) COVID support from NHS England (received via Hospice UK) of £1,333k (b) Support from HM Treasury through the Job Retention scheme of £404k (c) Increased NHS Commissioning Income of £2,533k (2019: £2,119k). Excluding lottery income and the effects of Gift aid transfer between Shops and Hospice, the net profit from shops for the year was £613k (2019: £559k).
## **Fundraising, Shops & Lottery**
Fundraising events were severely disrupted during the year due to COVID social distancing rules. The disruptions resulted in a 70% drop in income from Events for 2020 compared to 2019. However, the income from Trust funds and individual donations were 50% and 28% higher respectively on a year-on-year basis. Income from legacies continued to remain strong at £937k (2019: £1,071k).
The retail lockdown during 2020 due to COVID had a significant negative impact on Over-thecounter (OTC) sales at shops during 2020. OTC sales at shops were lower by 48% on a yearon-year basis. The lockdown also adversely affected online sales, recycling income and gift aid income. The support from HM Treasury via the Job Retention scheme, the Retail grants received from the (Harrow and Brent) Councils and the receipt of the business interruption insurance aided the shops Company’s financial results for the year.
The investment made in 2019 on recruitment of lottery players resulted in a healthy growth in lottery income in 2020. Lottery income was higher by 16% year-on-year at 319k (2019: 274k).
2020 Annual Report 21
## **Risk management**
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Indicator Measure Tolerance limits Actions to mitigate Indicator Measure Tolerance limits Actions to mitigate
Comprehensive competency Building partnership approach
training for staff. Detailed with Clinical Commissioning
Serious untoward clinical or
clinical policies and procedures Group (CCG). Evidencing
other incident resulting in death Drop in statutory income Contract Value Zero
No of incidents Zero to support clinical practice. outcome and impact of work.
or serious harm to patient,
Elaborate incident reporting Offering new services based on
supporter, staff or volunteer
and follow up at “clinical quality CCG’s priorities.
matters” forum. Robust Internal financial
Complaints policy and controls. Compliance
Financial fraud Amount lost Zero
procedures in place. with financial policies and
Patient/Family complaint Investigation and remedial procedures.
implying serious failings in No of complaints Zero action taken where necessary. Regular meetings among
quality of care Learning from complaints Lack of monitoring by Board Lack of agreed Trustees and SET. Detailed
discussed at “clinical quality and SET of progress against KPIs against Zero discussions around KPIs with a
matters” forum.
strategic plan strategic aims view to taking corrective action
All incidents investigated if required.
and remedial action taken Issues of general concern
as required. Duty of Candour More than 30% discussed at staff consultative
Accidents and Near misses i.e. implemented as per policy. of staff say they group and Volunteers Hub.
2 similar incidents
incidents that have potential to No of incidents Learning from complaints Staff Survey, feel morale is low
cause serious harm per quarter discussed at “clinical quality Low staff morale complaints from in a survey. More Established annual individual
matters” forum. Recurring staff than 5 complaints/ development review (IDR)
themes considered for quality grievances in a process aimed at addressing
improvement projects. quarter. individual morale issues among
other matters.
Information Governance policies,
>1 H&S incident
procedures and monitoring.
Serious data breach involving where we have not
No of incidents Zero Information Governance training Increase in H&S
personal data Lack of robust policy framework complied with legal Regular review of Policies by
and investment in enabling Incidents Policies
to review and implement policies requirements. More Governance Committees.
technology. not compliant
than 20% of our
Conflict of interest resulting in policies out of date.
trustees, staff or Volunteers Policies and Procedures. Lack of compliance with Complaint from Robust Internal controls.
or related parties benefiting No of incidents Zero
Disclosures and declarations. regulatory bodies CQC, member of public Compliance with policies and
commercially due to their Zero
Gambling Commission, Charity or whistleblowing procedures. Training and mock
relationship with the hospice Commission by staff inspections.
< 6 months Sickness figures monitored
of operating Robust Financial sustainability
No of months of and reported. Individuals
Level of reserves clinical expenditure expenditure in free plan. Close monitoring of Increased workload required to have “return to
reserves expected to financial performance. on staff having to work” interviews and asked
occur. Loss of resources due to staff cover other posts/ 10% of workforce out to attend occupational health
sickness of action.
Detailed budgeting and complaints from if needed. Optimal staffing
forecasting Income. Regular staff levels determined using
Significant drop in trading or >5% budgeted
Gross income and prompt monitoring of the “Establishment Genie”
fundraising income income
performance leading to remedial methodology .
action.
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2020 Annual Report 23
22 St Luke’s Hospice
## **Pension liability**
Before 1 May 2015, the hospice offered a multi-employer pension scheme providing a defined benefit (career average) pension for members. This scheme was closed to further accrual in July 2016. The scheme was a “last man standing” arrangement which means that the company could be potentially liable for other participating employers’ obligations if those employers are unable to meet their share of the scheme deficit following withdrawal from the scheme.
The scheme is run by TPT and is in deficit. The last full scheme valuation in September 2019 resulted in the Hospice agreeing to pay approximately £68k each year in deficit contributions. This contribution will increase by 3% each year until 2027. The Scheme actuaries estimated in September 2019 that these deficit recovery payments from employers would be sufficient to return the scheme to a fully funded position. We were informed in 2016 that the cost to “buy out” the Hospice liability would be £4,900k. A Designated Reserve of £300k has been retained towards this potential future buy-out. The Board recognises this as a key risk and is monitoring the risk along with the Senior Team.
## **Reserves policy**
As at 31 December 2020 the company had the following Designated and General Reserves:
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£ 000s Timeline for use
The designated fixed asset fund represents
the net book value of the Hospice’s fixed
Designated Fixed Asset Fund 4,983
assets. It has been set up to assist in
identifying funds which are not free funds.
The designated shops asset fund has been
Designated Shops Assets Fund 171 set up to identify fixed assets of the shops
company not covered by their working capital.
Reserves excluding fxed asset funds
General Fund 3,307 General purposes
General purposes – against perceived risks to
Risk Management Reserve 1,542
income
Held towards a potential future buy-out of the
300
Pension Deficit Reserve
Defined Benefit Pension scheme
Total 5,149
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Fundraising accounts for 15% of the Hospice’s gross total income. Income from the Charity Shops Company accounts for 30% of the Hospice’s gross income and around 26% of the gross income is earned from contracts with Harrow & Brent Clinical Commissioning Groups. As a result, the Hospice needs to ensure that it has a sufficient reserve of funds available to meet unexpected shortfalls in its funding streams, or sudden increases in costs.
The Board aims to maintain six months of operating expenditure as Reserves. That amounts to £2,512k (Operating expenditure for 2020 was £5,025k). Reserves (excluding Fixed Asset funds) as at 31st December 2020 were £5,149k. This is approximately 12 months’ of operating expenditure. Within the overall quantum of Reserves to be maintained, recognising the mix of income streams that the Hospice relies on to fund its work and the different risks associated with each income stream, the Board assessed each individual income stream and the potential risks associated with it. Each income stream was given a risk weighting and a potential reserve amount allocated. As a result, the Trustees agreed a target level of £1,650k of Designated Risk Management Reserves. This Risk Management Reserve was at £1,542k as at 31 December 2020. The Reserve was set up so that the Hospice is able to manage any unexpected shortfall in income to protect the needs of the patients served and also to give a reassurance of security for the staff. The surplus generated during the year was added to General Funds. The trustees have Designated Reserves equivalent to the fixed assets of the hospice and also of the subsidiary Charity Shops Company, which are not covered by that company’s working capital. This is to better identify funds that are available to cover specific risks.
The Finance & General Purposes Committee reviews the level of Reserves annually and considers any amendments to the policy which may be necessary and reports its conclusions to the Board. The current policy was approved by the Board in August 2021.
## **Investment policy**
The Board, in 2016, appointed Rathbones PLC as investment managers to manage the investment portfolio. Approximately £1,600k was originally allocated to them to be held by them in underlying investments appropriate to the purpose and anticipated timescale of the designated reserve to which it relates. The value of those investments as at 31 December 2020 was £1,571k.
The Senior Executive Team monitors the performance of the investment funds and reports quarterly to the Finance & General Purposes Committee.
2020 Annual Report 25
24 St Luke’s Hospice
## **Funding**
trading subsidiary exists to maximise income for the hospice and all profits are paid to the hospice using Gift Aid.
The Hospice’s principal funding sources (as % of gross total income) during 2020 were:
- y 15% Fundraising through donations and fundraising events (2019: 18%) excluding gift aided sales, gift aid recovered through charity and lottery
- y 10% Legacy Gifts (2019: 14%)
- y 30% Income from Trading Subsidiary (2019: 40%) including Gift Aided sales, Gift Aid recovered through charity and lottery including retail support from HMRC and councils
- y 26 % Harrow & Brent Clinical Commissioning Groups (NHS) (2019: 27%)
- y 14 % COVID Support from NHS England (2019: 0%)
- y 5% Investment and other income (2019: 1%)
All of these funds are employed in providing the specialist palliative care which is the primary purpose of the Hospice.
St Luke’s is governed by a Council of Management (Board of Trustees). Trustees are appointed for an initial 3-year period and are eligible for re-election for a further 3 years. Thereafter a year must elapse before they are eligible to stand again. Those holding the posts of Chairman, Vice Chairman serve for an initial period of 3 years and are eligible for re-election for a further 3 years – this may be in addition to a term(s) served as a Trustee.
Trustees are appointed by the Board following open recruitment with internal and external press advertising. The Board reviews the skills it needs in deciding selection criteria to maintain breadth of skills. During the year 4 new trustees were recruited following an extensive process which included external advertising and open evenings for prospective candidates to find out more about the work of the hospice and the role of the Board.
All trustees are required to complete a thorough induction programme during their first 6 months in post including spending time with different departments in the organisation and attending different committee meetings. The induction process is supported and overseen by the Chair and the CEO.
## **Tangible fixed assets**
Movements in tangible fixed assets are shown in note 10 to the financial statements.
## **Going Concern**
The trustees have prepared the financial statements on a going concern basis and consider that no disclosures relating to the charity’s ability to continue as a going concern need to be made in the financial statements.
## **Structure, Governance and Management**
The Hospice was incorporated as St Luke’s Hospice (Harrow & Wembley) Limited under the Memorandum & Articles of Association dated 22 June 1987 as amended on 8 January 1988, 11 November 1993, 15 August 2000, 26 June 2001 and 18 December 2008. In 1993, following local government reform, the Hospice changed its registered name to St Luke’s Hospice (Harrow & Brent) Limited to reflect the change of name of part of its catchment area from the London Borough of Wembley to the London Borough of Brent.
The full Board usually meets quarterly. The Board held an annual strategy away day in October 2020 jointly with the Senior Executive Team as part of the process. The Board delegates consideration of key areas of its work to 3 standing committees: Finance & General Purposes, Clinical Governance and Income generation. Each Trustee sits on at least one of these committees, each of which usually meets quarterly in advance of the Board meetings. The Board has delegated certain powers to the Chief Executive Officer (CEO) who acts as a conduit between the senior staff and Trustees.
The Board has adopted a governance calendar to ensure that it systematically reviews key management information and data and satisfies itself that the Hospice is properly and correctly run enabling the Board to discharge its governance responsibilities in full.
The Hospice is a member of Hospice UK and works with it and a number of neighbouring hospices where collaboration is the best approach. The Hospice also strives to build good working relationships with the Harrow & Brent Clinical Commissioning Groups, from which it receives part of its funding. St Luke’s also maintains links with a variety of professional associations which support the work of the staff.
The Company has a wholly owned trading subsidiary, St Luke’s Hospice (Harrow & Brent) Charity Shops Ltd, through which it operates a network of charity shops and a Lottery. The
2020 Annual Report 27
26 St Luke’s Hospice
**Statement of Trustees’ Responsibilities**
## **Senior Executive Remuneration**
The charity’s approach to pay policy is consistent for our staff and the Executive team. Our policy is designed to enable us to attract, retain and motivate high performing Executive team members.
It also aims to demonstrate to our stakeholders (particularly funders and service users) that our pay levels are set to support delivery of the charity’s aims and are an effective use of charitable funds.
The Trustees are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Charity law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and group and of the incoming resources and application of resources, including the income and expenditure, of the charity and group for that period. In preparing these financial statements, the trustees are required to:
- y select suitable accounting policies and apply them consistently;
The objectives of our pay policy are to:
- y reward senior staff appropriately and enable the recruitment of a high calibre Executive Team ensuring our leadership has the skills and experience required to run St Luke’s Hospice, an organisation caring for 1,800 patients every year with an annual income of over £7m, 140 paid staff and over 500 volunteers.
- y ensure the proper use of the charity’s resources in accordance with its aims and within affordable limits based on the financial circumstances of the charity
- y be non-discriminatory, just and equitable in the evaluation of jobs and their remuneration by providing a stable framework for the remuneration of the Executive team
- y operate within the law
- y pay at a competitive level taking account of external market rates, with the aim being to set pay at the median level or above for comparable posts in the voluntary sector subject to the charity’s financial position.
The charity publishes the salary of its key management personnel (Senior Staff listed on page 2) within its annual report. The number of staff paid over £60k is also published in accordance with the charity accounting requirements.
Executive pay is reviewed on an annual basis by the Pay and Reward Committee and is subject to approval by the Board of Trustees, which is responsible for ensuring proper application of our pay policy.
- y observe the methods and principles in the Charities SORP;
- y make judgements and estimates that are reasonable and prudent;
- y state whether applicable UK Accounting Standards have been followed subject to any material departures disclosed and explained in the financial statements;
- y prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.
The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time of the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
So far as each of the Trustees is aware at the time the report is approved:
- y there is no relevant audit information of which the charity and group’s auditors are unaware
- y the Trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information
The Trustees are responsible for maintenance and integrity of the charity and financial information included on the charity’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislations in their jurisdictions.
In approving this Trustees’ Report, the Board are also approving the Strategic Report included herein in their capacity as company directors.
By order of the Board
Dr Gillian Schiller, Chairman
Date:
2020 Annual Report 29
28 St Luke’s Hospice
**Independent Auditor’s Report to the Members of St Luke’s Hospice (Harrow & Brent) Limited (continued)**
**Independent Auditor’s Report to the Members of St Luke’s Hospice (Harrow & Brent) Limited**
## Opinion
We have audited the financial statements of St Luke’s Hospice (Harrow & Brent) Limited for the year ended 31 December 2020 which comprise the Consolidated Statement of Financial Activities, the Charity and Group Balance Sheets, the Statement of Consolidated Cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion, the financial statements:
- y give a true and fair view of the state of the group’s and of the parent charitable company’s affairs as at 31 December 2020 and of the group’s and parent charitable company’s net movement in funds, including the income and expenditure, for the year then ended;
- y have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- y have been prepared in accordance with the requirements of the Companies Act 2006.
## Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our
report. We are independent of the charity/group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## Conclusions relating to going concern
In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
## Other information
The trustees are responsible for the other information. The other information comprises the information included in the Trustees’ Annual Report and the Message from the Chairman and Chief Executive. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
## Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- y the information given in the Trustees’ Annual Report (which includes the strategic report and the directors’ report prepared for the purposes of company law) for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- y the strategic report and the directors’ report included within the Trustees’ Annual Report have been prepared in accordance with applicable legal requirements.
## Matters on which we are required to report by exception
In the light of the knowledge and understanding of the group and the parent charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees’ Annual Report (which incorporates the strategic report and the directors’ report).
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 require us to report to you if, in our opinion:
- y adequate accounting records have not been kept by the parent charitable company, or returns adequate for our audit have not been received from branches not visited by us; or
2020 Annual Report 31
30 St Luke’s Hospice
**Independent Auditor’s Report to the Members of St Luke’s Hospice (Harrow & Brent) Limited (continued)**
**Independent Auditor’s Report to the Members of St Luke’s Hospice (Harrow & Brent) Limited (continued)**
- y the parent charitable company financial statements are not in agreement with the accounting records and returns; or
- y certain disclosures of trustees’ remuneration specified by law are not made; or
- y we have not received all the information and explanations we require for our audit.
## Responsibilities of trustees for the financial statements
As explained more fully in the trustees’ responsibilities statement set out on page 17, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the group’s and the parent charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the group or the parent charitable company or to cease operations, or have no realistic alternative but to do so.
## Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Based on our understanding of the group and the environment in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to compliance with regulatory requirements of the Care Quality Commission, Charity Commission, employment law and health and safety regulations, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the
financial statements such the Companies Act 2006, the Charities Act 2011, payroll taxes and VAT.
We evaluated management’s incentives and opportunities for fraudulent manInpatient Unitlation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to recognition of income and management bias in certain accounting estimates. Audit procedures performed by the engagement team included:
- y Inspecting trustees’ meeting minutes
- y Inspecting correspondence with regulators and tax authorities;
- y Discussions with management including consideration of known or suspected instances of non-compliance with laws and regulation and fraud;
- y Evaluating management’s controls designed to prevent and detect irregularities;
- y Identifying and testing journals, in particular journal entries posted with unusual account combinations, postings by unusual users or with unusual descriptions; and
- y Challenging assumptions and judgements made by management in their critical accounting estimates.
## Matters on which we are required to report by exception
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
## Use of our report
This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an Auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
## Lee Stokes (Senior statutory auditor)
for and on behalf of Haysmacintyre LLP, Statutory Auditor
10 Queen Street Place, London, EC4R 1AG.
2020 Annual Report 33
32 St Luke’s Hospice
**Consolidated Statement Of Financial Activities** (Including an Income and Expenditure Account) for the year ended 31 December 2020 St Luke’s Hospice (Harrow & Brent) Limited
|Notes
Income from:
_Donations and legacies_
. Donations
2
. Covid grants
2
. Legacies
3
_Charitable Activities_
. NHS commissioning
. Other income
5
_Other trading activities_
. Fundraising events
2
. Gross income from shops and
lottery
4
_Investments_
Total income
Expenditure on:
_Raising funds_
- Fundraising costs
. Fundraising events costs
. Shops and lottery expenditure
. Investment management costs
_Charitable activities_
. Inpatient services
. Day care services
. Homecare services
. Overall clinical support
Total expenditure
7
Net expenditure before gains/
(losses) on investments
Net gains/(losses) on investments
11
|Unrestricted
Funds
£’000
1,434
159
937|
Restricted
Funds
£’000
214
1,333
-|Endowment
Funds
£’000
-
-
-|
Total
2020
£’000
1,648
1,492
937|Total
2019
£’000
1,784
-
1,071
2,855
2,119
43
2,162
338
2,412
2,750
48
7,815
673
267
2,736
12
3,688
1,620
295
919
1,642
4,476
8,164
(349)
168|
|---|---|---|---|---|---|
||2,530|1,547|-|4,077||
||2,287
163|246
-|-
-|2,533
163||
||2,450|246|-|2,696||
||100
2,631|-
-|-
-|100
2,631||
||2,731|-|-|2,731||
||86|-|-|86||
||7,797|1,793|-|9,590||
||529
214
2,363
11|-
-
-
-|-
-
-
2|529
214
2,363
13||
||3,117|-|2|3,119||
||95
463
695
1,515|1,612
30
129
23|-
-
-
-|1,707
493
824
1,538||
||2,768|1,794|-|4,562||
||5,885|1,794|2|7,681||
||1,912
(65)
|(1)
-|(2)
(4)|1,909
(69)
||
||153|-|-|153||
||2,000|(1)|(6)|1,993||
## **Consolidated Statement Of Financial Activities**
(Including an Income and Expenditure Account) for the year ended 31 December 2020 St Luke’s Hospice (Harrow & Brent) Limited
|Notes
Net expenditure
6
Transfer between funds
Net movement in funds
Reconciliation of funds
Total funds brought forward
Total funds carried forward|Unrestricted
Funds
£’000
Restricted
Funds
£’000
Endowment
Funds
£’000
Total
2020
£’000
Total
2019
£’000
2,000
(1)
(6)
1, 993
(181)
-
-
-
-
-|Unrestricted
Funds
£’000
Restricted
Funds
£’000
Endowment
Funds
£’000
Total
2020
£’000
Total
2019
£’000
2,000
(1)
(6)
1, 993
(181)
-
-
-
-
-|Unrestricted
Funds
£’000
Restricted
Funds
£’000
Endowment
Funds
£’000
Total
2020
£’000
Total
2019
£’000
2,000
(1)
(6)
1, 993
(181)
-
-
-
-
-|Unrestricted
Funds
£’000
Restricted
Funds
£’000
Endowment
Funds
£’000
Total
2020
£’000
Total
2019
£’000
2,000
(1)
(6)
1, 993
(181)
-
-
-
-
-|
|---|---|---|---|---|
||2,000
(1)
8,303
6|(6)
225|1,993
8,534|(181)
8,715|
||10,303
5|219
|10,527|8,534|
All amounts relate to continuing activities. There are no recognised gains or losses for the current or preceding financial year other than as shown above, therefore no Statement of Total Recognised Gains & Losses has been presented. Income and expenditure by fund for the year ended 31 December 2020 is given in note 19 to the accounts.
The notes on pages 38 to 58 form part of these accounts.
2020 Annual Report 35
**Statement of Consolidated Cash Flows** St Luke’s Hospice (Harrow & Brent) Limited For the Year Ended 31 December 2020
**Charity and Group Balance Sheets** at 31 December 2020 Company Number 02141770 St Luke’s Hospice (Harrow & Brent) Limited
|Notes
FIXED ASSETS
Tangible assets
10
Investments
11
CURRENT ASSETS
Debtors
12
Cash at bank and in hand
CURRENT LIABILITIES
Creditors: amounts falling due
within one year
13
NET CURRENT ASSETS
Long term liabilities
(Pension defcit)
20
NET ASSETS
14
Represented by
Unrestricted funds
Designated funds
General fund
Endowment funds
Restricted funds
15
|Group
2020
£’000
2019
£’000|Group
2020
£’000
2019
£’000|Group
2020
£’000
2019
£’000|Group
2020
£’000
2019
£’000|Group
2020
£’000
2019
£’000|Group
2020
£’000
2019
£’000|Charity
2020
£’000
2019
£’000|Charity
2020
£’000
2019
£’000|Charity
2020
£’000
2019
£’000|Charity
2020
£’000
2019
£’000|Charity
2020
£’000
2019
£’000|Charity
2020
£’000
2019
£’000|
|---|---|---|---|---|---|---|---|---|---|---|---|---|
||5,15
1,57||5
1|5,274
1,652|||4,977
1,571|||5,006
1,652|||
|||6,72
1,92
3,02|6
1
3||6,9
8
1,9|26
50
00||6,54
3,23
1,67|8
3
4||6,6
2,0
9|58
77
14|
|||4,944
(734)|||2,750
(512)|||4,907
(521)|||2,991
(383)||
|||4,210
(409)|||2,238
(630)|||4,386
(409)|||2,608
(630)||
|||10,527|||8,534|||10,525|||8,636||
|||6,996
3,307|||7,188
1,115|||6,996
3,305|||7,188
1,217||
|||10,303
219
5|||8,303
225
6|||10,301
219
5|||8,405
225
6||
|||10,527|||8,534|||10,525|||8,636||
||||||||||||||
||||||||||||||
The net result of the charity’s own activities for 2020 was a surplus of £1,440,147 (2019: deficit £149,000).
The financial statements were approved and authorised for issue by the Board of Trustees on and signed on their behalf by:
G Schiller
Chair of Trustees
The notes on pages 38 to 58 form part of these accounts
||||2020|2020|2020|2020|||||2019|2019|2019|2019||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|Cash fows from operating activities:
Net cash fow provided by/(used in) operating
activities (note A)
Cash fows from investing activities:|||£’000|||£’000
1,093||||£’000||||£’000
198||
|||||||||||||||||
|Dividends, interest and rents from investments
Purchase of property, plant and equipment|||86
-||||||||48
(11)|||||
|Disposal of investments|||585||||||||152|||||
|Acquisition of investments|||(556)||||||||(150)|||||
|Change in investment cash|||(17)||||||||11|||||
|Proceeds from disposal of fxed assets|||-||||||||6|||||
|Pension creditor revaluation|||(68)||||||||-|||||
|Net cash used in investing activities||||||30||||||||56||
|Change in cash and cash equivalents in the
reporting period||||||1,123||||||||254||
|Cash and cash equivalents at the beginning of
the reporting period
Cash and cash equivalents at the end of the
reporting period||||||1,900
3,023||||||||1,646
1,900||
|A) Reconciliation of net (expenditure)/income to net cash fow
from operating activities||||||2020||||||||2019||
|||||||£’000||||||||£’000||
|Net expenditure for the reporting period (as per the statement
of fnancial activities)||||||1,993||||||||(181)||
|Adjustments for:||||||||||||||||
|Depreciation charges
Losses/(gains) on investments||||||119
69||||||||143
(168)||
|Gain on pension revaluation||||||(153)||||||||-||
|Dividends, interest and rents from investments||||||(86)||||||||(48)||
|Decrease/(increase) in debtors||||||(1,071)||||||||374||
|Increase/(decrease) in creditors||||||222||||||||58||
|Loss on disposal of fxed assets
Net cash fow provided in/(used in) operating activities||||||-
1,093||||||||20
198||
|Analysis of cash and cash equivalents
Cash at bank and in hand
Total cash and cash equivalents||||||3,023
3,023||||||||1,900
1,900||
|ANALYSIS OF NET DEBT||Balance at||||Cash||||Other non-||||Balance at||
||||1.1.20
£’000|||fows
£’000||cash changes
£’000||||||31.12.20
£’000||
|Total cash and cash equivalents|||1,900|||1,123||||||-||3,023||
|||||||||||||||||
36 St Luke’s Hospice
For the Year Ended 31 December 2020 St Luke’s Hospice (Harrow & Brent) Limited
## **Notes to the Financial Statements**
## 1. ACCOUNTING POLICIES
The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:
## (i) Basis of preparation
The financial statements have been prepared in accordance with the Statement of Recommended Practice for Charities (SORP 2015) (Second Edition, effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
The charity meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s).
## (ii) Critical accounting judgements and key sources of estimation uncertainty
In the application of the accounting policies, trustees are required to make judgement, estimates, and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affected current and future periods.
Judgements made by the trustees, in the application of these accounting policies that have significant effect on the financial statements and estimates with a significant risk of material adjustment in the next year are deemed to be in relation to the depreciation rates of tangible fixed assets and accruing for legacies which have not yet been received.
In the view of the trustees, no assumptions concerning the future or estimation uncertainty affecting assets or liabilities at the balance sheet date are likely to result in a material adjustment to their carrying amounts in the next financial year.
## (iii) Financial instruments
Basic financial instruments are initially recognised at transaction value and subsequently measured at amortised with the exception of investments which are held at fair value. Financial assets held amortised cost comprise cash at bank and in hand, together with
trade and other debtors. A specific provision is made for debts for which recoverability is in doubt. Cash at bank and in hand is defined as all cash held in instant access bank accounts and used as working capital. Financial liabilities held at amortised cost comprise all creditors except social security and other taxes and provisions.
## (iv) Preparation of accounts on a going concern basis
The trustees consider there are no material uncertainties about the charity’s ability to continue as a going concern. The review of our financial position, reserves levels and future plans gives trustees confidence the charity remains a going concern for the foreseeable future.
## (v) Consolidation
These accounts consolidate the results of the charity and its wholly owned subsidiary, St Luke’s Hospice (Harrow & Brent) Charity Shops Limited, on a line-by-line basis. A separate Income and Expenditure Account and Statement of Financial Activities is not presented for the charity alone as permitted by the Companies Act 2006 and Charities SORP.
## (vi) Income
Income from donations, legacies and grants are recognised where there is entitlement, probability of receipt and the amount can be measured with sufficient reliability. Donations include related gift aid income.
The Shops company acts as agent to sell items donated with a gift aid declaration and to pass the resulting cash donations to the Hospice rather than record them as turnover within the Shops Company. The Hospice also receives the gift aid claimed on these donations.
Legacies are included when the Hospice becomes entitled to the funds and the sum receivable can be reliably quantified. Where they rely on the sale of property or investments, and thus do not have a certain valuation, an estimate of their value is disclosed in the notes to the financial statements.
Investment income is recognised on a receivable basis.
Income from charitable activities includes income from NHS contracts from the Harrow & Brent Clinical Commissioning Groups. They have been dealt with on a receivable basis as a contribution to running costs.
There have been no significant gifts in kind or donated goods and services during the year.
The value of services provided by volunteers is not incorporated in these financial
2020 Annual Report 39
38 St Luke’s Hospice
**Notes to the Financial Statements (continued)** For the Year Ended 31 December 2020 St Luke’s Hospice (Harrow & Brent) Limited
**Notes to the Financial Statements (continued)** For the Year Ended 31 December 2020
St Luke’s Hospice (Harrow & Brent) Limited
statements. Further detail of the substantial contribution by volunteers can be found in the Report of the Trustees.
## (vii) Expenditure
Expenditure is recognised when a liability is incurred. It includes VAT where this is not recoverable.
Expenditure on raising funds is the costs incurred in attracting donation income, organising and managing fundraising events, and the costs incurred in trading activities which raise funds.
Charitable activities include the hospice care services offered to inpatients, day care patients, those receiving hospice services in their own homes, and their carers and families. There are also a range of clinical and other services which apply to all these forms of hospice care. These costs include both the direct costs and support costs relating to these activities.
Support costs include central functions and have been allocated to activity cost categories on a basis consistent with the use of resources, e.g., property costs by floor areas and other costs on the bases shown in Note 7.
Governance costs include those incurred in the governance of the charity and its assets and are primarily associated with compliance with constitutional and statutory requirements. These have been allocated to activity costs on the same basis as support costs.
## (viii) Tangible fixed assets
All assets acquired costing more than £2,500 are capitalised. Leasehold properties assets acquired prior to 2016 - over the term of the lease assets acquired after 2016 – shorter of 5 years or the remaining term of the lease
Fixtures and equipment 20% Motor vehicles 20% IT equipment and systems 20%
The freehold property is not depreciated as the amount of depreciation is considered to be immaterial.
Tangible fixed assets are held at cost and (except for the freehold property) depreciated on a straight line basis over their estimated useful lives as follows.
## (ix) Investments
Investments are initially recognised at their transaction cost and subsequently valued at fair value at the Balance Sheet date, unless fair value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and shown in the heading ‘Net gains/(losses) on investments’ in the Statement of Financial Activities.
## (x) Funds
General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes.
Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by the donors or which have been raised by the charity for specific purposes.
Endowment funds are restricted funds which are to be retained for the benefit of the charity as a capital fund.
The Hospice has a number of restricted income and capital funds. Details of the funds are given in the notes to the financial statements.
## (xi) Pensions
The Group currently offers a qualifying defined contribution pension scheme to all staff. In addition the Group is a Direction Employer under the NHS Scheme.
## National Health Service Superannuation scheme
This is a statutory superannuation scheme as defined in Section 6.12 (1) Income and Corporation taxes Act 1988, which has no invested funds. Contribution by employers (currently 20.68%) and members are accounted for to the Treasury and benefits are paid from the consolidated fund. This scheme is only open to staff who have been members of the NHS scheme in previous employment under the dispensation rules. The accounting charge represents the employer’s contributions for the period.
## Defined Contribution Scheme (Pensions Trust)
With effect from 1 May 2015 the group also operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the group in an independently administered fund. The pension cost charge represents contributions
2020 Annual Report 41
40 St Luke’s Hospice
**Notes to the Financial Statements (continued)** For the Year Ended 31 December 2020 St Luke’s Hospice (Harrow & Brent) Limited
**Notes to the Financial Statements (continued)** For the Year Ended 31 December 2020 St Luke’s Hospice (Harrow & Brent) Limited
payable under the scheme by the group. There is no liability under the scheme other than the payment of those contributions.
## (xii) Taxation
No tax is payable due to the charitable status of the parent company. Taxable profits generated by the trading subsidiary are transferred to the parent company under gift aid.
## (xiii) Leases
Operating lease rentals are charged to the Statement of Financial Activities over the period of the lease.
## (xiv) Legal status
The charitable company is limited by Guarantee and does not have any share capital.
## (xv) Employee benefits
Short term benefits including holiday pay are recognised as an expense in the period in which the service is received. Termination benefits are accounted for on an accrual basis and in line with FRS 102.
## (xvi) Debtors
Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
## (xvii) Cash at bank and in hand
Cash at bank and cash in hand includes cash and short term highly liquid investments.
## (xviii) Creditors and provisions
Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.
## 2. DONATIONS - 2020
|Individual donations
In memoriam donations
Community groups
Trust fund donations
Corporate donations
Major Donors
Gift aid
Donations & gift aid from sale of goods in shops|Unrestricted
funds
£’000
323
202
147
182
125
105
65
285
1,434|Restricted
funds
£’000
-
-
-
214
-
-
-
-
214|Total
2020
£’000
323
202
147
396
125
105
65
285
1,648|Total
2019
£’000
241
189
160
262
74
57
72
729|
|---|---|---|---|---|
|||||1,784|
||||||
Fundraising events in 2020 were adversely impacted by Covid-19 but despite that, they were successful in raising £99,783 (2019: £337,902).
|DONATIONS - 2019
Individual donations
In memoriam donations
Community groups
Trust fund donations
Corporate donations
Major Donors
Gift aid
Donations & gift aid from sale of goods in shops
COVID GRANTS
Hospice UK grants
HMRC Job Retention Scheme|Unrestricted
funds
£’000
241
189
160
112
74
57
72
729
1,634
Unrestricted
funds
£’000
-
159
159|Restricted
funds
£’000
-
-
-
150
-
-
-
-
150
Restricted
funds
£’000
1,333
-
1,333|Total
2019
£’000
241
189
160
262
74
57
72
729|
|---|---|---|---|
|||||
||||1,784|
||||Total|
||||
2020
£’000
1,333
159|
||||1,492|
2020 Annual Report 43
42 St Luke’s Hospice
**Notes to the Financial Statements (continued)** For the Year Ended 31 December 2020 St Luke’s Hospice (Harrow & Brent) Limited
**Notes to the Financial Statements (continued)** For the Year Ended 31 December 2020
St Luke’s Hospice (Harrow & Brent) Limited
## 3. LEGACIES
In addition to the sum of £937,000 from legacies within income (2019: £1,071,000), the Hospice has also received notifications for legacies where the value is currently uncertain until property or equity sales are completed, or probate granted; due to the difficulty with the valuation in light of the uncertainties no estimation has been made for these legacies. In accordance with the Hospice’s accounting policy for legacies, these are not included in these accounts on the grounds of uncertainty of measurement.
## 4. INCOME AND EXPENDITURE FROM SHOPS AND LOTTERY
The charity owns the entire share capital of St Luke’s Hospice (Harrow & Brent) Charity Shops Limited, a company registered in England and Wales, which operates charity shops in support of the hospice funding. The subsidiary transfers to the Hospice under gift aid an amount not less than its taxable profits.
A summary of the trading results of the subsidiary is shown below. Audited accounts have been prepared in respect of the trading period for the year ended 31 December 2020.
|Turnover
Income from lottery
Government grants
Cost of sale of purchased goods
Administration expenses
Lottery expenditure and prizes
Gross direct expenditure of shops and lottery
Net direct income from shops and lottery
Lease costs relating to shops recorded in Charity
Donations of goods under gift aid
Gift aid reclaimed
Contribution generated by Charity Shops Ltd|Total
2020
£’000
1,650|Total
2019
£’000
2,138|Total
2019
£’000
2,138|
|---|---|---|---|
||319
662|274
-||
||2,631||2,412|
||3
1,924
151||7
2,237
200|
||2,078||2,444|
||553
(55)
227
56||(32)
(64)
584
145|
||781||633|
|||||
## 5. CHARITABLE ACTIVITIES - 2020
|NHS commissioning income
Service level agreement
Other funding|Unrestricted
funds
£’000
2,287
2,287
163
2,450|Restricted
funds
£’000
246|Restricted
funds
£’000
246|Total
2020
£’000
2,533
2,533
163
2,696|Total
2020
£’000
2,533
2,533
163
2,696|Total
2019
£’000
2119|
|---|---|---|---|---|---|---|
|||||,||,|
||||246
-||2,533
163|2,119
43|
||||246||2,696|2,162|
||||||||
||||||||
||||||||
NHS commissioning income in 2020 includes funding for the pilot Fast Track Brokerage project. The project has been extended until March 2022.
|CHARITABLE ACTIVITIES -2019
NHS commissioning income
Service level agreement
Other funding
Net income is stated after charging:
Depreciation
Auditor’s remuneration
Other fees payable to auditors
Operating lease rental
6.
NET EXPENDITURE|Unrestricted
funds
£’000
1,873
43
1,916|Restricted
funds
£’000
246
-
246
Total
2020
£’000
119
13
3
489|Total
2019
£’000|
|---|---|---|---|
||||2,119|
||||43|
||||2,162|
||||Total
2019
£’000
143
10
5|
||||555|
## 6. NET EXPENDITURE
In addition to the gross direct expenditure shown above, additional indirect support costs of £229k (2019: £292k) relating to Hospice support services, are allocated to shops and lottery 44(see note 7).St Luke’s Hospice
2020 Annual Report 45
**Notes to the Financial Statements (continued)** For the Year Ended 31 December 2020 St Luke’s Hospice (Harrow & Brent) Limited
**Notes to the Financial Statements (continued)** For the Year Ended 31 December 2020 St Luke’s Hospice (Harrow & Brent) Limited
|2020|Total||£’000|4,124|55|138
147|138
147|138
147||2,028|6,492||161|199|274|218|337|||1,189|7,681|8,164||||||||2019|Total||£’000|4,401|57|142
274|142
274|142
274||2,106|6,980||155|218|258|295|258|||1,184|8,164|8,222||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|General|clinical|support|£’000|774|-|138|-|||413|1,325||12|35|48|25|93|||213|1,538|1,642||||||||General|clinical|support|£’000|921|-|142|-|||377|1,440||11|38|45|36|71|||201|1,642|1,721||||||
|Homecare|services||£’000|514|-|-|-|||199|713||12|21|23|11|44|||111|824|919||||||||Homecare|services||£’000|585|1|-|-|||228|814||12|23|22|15|34|||106|919|999||||||
|Basis of
Fundraising
Fundraising
Shops &
Investment
Inpatient
Day|Allocation
Costs
event costs
Lottery
Management
services
care|expenses
costs
services|£’000
£’000
£’000
£’000
£’000
£’000|Staff costs
Direct
313
105
1,020
-
1,022
376|Drugs and medical
Direct
-
-
-
-
55
-|Catering and housekeeping
Direct
-
-
-
-
-
-
Fundraising and community
Direct
111
36
-
-
-
-||||Other direct costs
Direct
-
-
1,058
13
324
21|424
141
2,078
13
1,401
397|Support costs|Management
Staff time
24
24
65
-
12
12|Finance
Staff time
20
20
65
-
25
13|HR
Headcount
17
8
99
-
69
10|Premises*
Floor area
12
5
56
-
67
42|General overheads
Headcount
32
16
-
-
133
19|||105
73
285
-
306
96|Total expenditure 2020
529
214
2,363
13
1,707
493|Total expenditure 2019
673
267
2,736
12
1,620
295||||||The lease rentals borne by the hospice relating to two shops are allocated wholly to Shops and Lottery Expenses.|7.
EXPENDITURE - 2019|Basis of
Fundraising
Fundraising
Shops &
Investment
Inpatient
Day|Allocation
Costs
event costs
Lottery
Management
services
care|expenses
costs
services|£’000
£’000
£’000
£’000
£’000
£’000|Staff costs
Direct
347
145
1,181
-
1,086
136|Drugs and medical
Direct
-
-
-
-
56
-|Catering and housekeeping
Direct
-
-
-
-
-
-
Fundraising and community
Direct
224
50
-
-
-
-||||Other direct costs
Direct
-
-
1,263
12
177
49|571
195
2,444
12
1,319
185|Support costs|Management
Staff time
23
23
62
-
12
12|Finance
Staff time
22
22
72
-
27
14|HR
Headcount
16
8
93
-
65
9|Premises*
Floor area
16
7
65
-
96
60|General overheads
Headcount
25
12
-
-
101
15|||102
72
292
-
301
110|Total expenditure 2019
673
267
2,736
12
1,620
295|Total expenditure 2018
537
388
2,504
12
1,638
423||||||
**Notes to the Financial Statements (continued)** For the Year Ended 31 December 2020 St Luke’s Hospice (Harrow & Brent) Limited
**Notes to the Financial Statements (continued)** For the Year Ended 31 December 2020 St Luke’s Hospice (Harrow & Brent) Limited
## 8. STAFF COSTS AND NUMBERS
|Salaries and wages
Social security costs
Pension costs
Total
Average number of employees (full time equivalents)
Hospice
Shops|Total
2020
£’000
4,316
372
275
4,963
83
43
126|Total
2019
£’000
4,435
383
301|
|---|---|---|
|||5,119|
|||86
53|
|||139|
Pension costs include an amount of £18,737 (2019 – £21,825) paid in respect of death in service cover for employees of the company.
There were on average 148 people employed (2019 – 164) full and part time.
During the year, 2 employees were paid gross salary between £60,000 and £70,000 (2019:2), 1 employee was paid gross salary between £70,000 and £80,000 (2019: nil) and no employee was paid gross salary between £80,000 and £90,000 (2019: 1).
The total remuneration for key management personnel included in staff costs above is £372,805 (2019: £382,952).
The employees were supported by 531 unpaid volunteers during the year (2019: 875).
## 9. TRUSTEES
None of the trustees received any remuneration or benefits in kind from the charitable company (2019: Nil). Expenses on behalf of one of the trustees or reimbursed during the year amounted to £765 (2019: £663).
## 10. TANGIBLE FIXED ASSETS
|Group
Cost
Opening balance
Additions
Closing balance
Depreciation
Opening balance
Charge for the year
Closing balance
Net Book Value
At 31 December 2020
At 31 December 2019
Charity
Cost
Opening balance
Additions
Closing balance
Depreciation
Opening balance
Charge for the year
Closing balance
Net Book Value
At 31 December 2020
At 31 December 2019|Freehold
properties
£’000|Leasehold
properties
£’000|Leasehold
properties
£’000|Fixtures &
equipment
£’000|Fixtures &
equipment
£’000|Fixtures &
equipment
£’000|Motor
vehicles
£’000|Motor
vehicles
£’000|Total
£’000
5,673
-|Total
£’000
5,673
-|
|---|---|---|---|---|---|---|---|---|---|---|
||4,932
-|599
-|||131
-|||11
-|||
||4,932||599||131|||11||5,673|
||-
-||321
92||76
25|||2
2||399
119|
||-||413||101|||4||518|
||4,932||186||30|||7||5,155|
||4,932||278||56|||8||5,274|
||Freehold
properties
£’000
4,932
-|Leasehold
properties
£’000
33
-||Fixtures &
equipment
£’000
120
-|||Motor
vehicles
£’000
-
-||Total
£’000
5,085
-
5,085
79
29
108
4,977
5,006||
||4,932||33|||120||-||5,085|
||-
-||10
6|||69
23||-
-||79
29|
||-||16|||92||-||108|
||4,932||17|||28||-||4,977|
||4,932||23|||51||-||5,006|
||||||||||||
||esents the acquisition and conversion costs of Ke
hown at historic cost and the costs of building the||||||||||
Freehold properties otherwise represents the acquisition and conversion costs of Kenton Grange between 1992 and 2002 shown at historic cost and the costs of building the Woodgrange Centre completed in 2015.
2020 Annual Report 49
48 St Luke’s Hospice
**Notes to the Financial Statements (continued)** For the Year Ended 31 December 2020 St Luke’s Hospice (Harrow & Brent) Limited
**Notes to the Financial Statements (continued)** For the Year Ended 31 December 2020 St Luke’s Hospice (Harrow & Brent) Limited
|11. INVESTMENTS
Market value at 1 January 2020
Additions
Disposals
Realised and unrealised gains/ (losses)
Movement in investment cash
Market value at 31 December 2020
The underlying investments of the portfolio are fxed
income (£524k), equities (£723k), property (£61k),
cash (£63k), and others (£200k).|Total
2020
£’000
1,652
556
(585)
(69)
17
1,571|Total
2019
£’000
1,497
150
(152)
168
(11)|Total
2019
£’000
1,497
150
(152)
168
(11)|
|---|---|---|---|
|||||
||||1,652|
|||||
## 12. DEBTORS: amounts falling due within one year
|12. DEBTORS: amounts falling due within one year||||
|---|---|---|---|
|Group
2020
£’000
2019
£’000
Trade debtors
186
158
Other debtors
769
126
Prepayments and accrued income
966
566
Amounts owed by subsidiary undertaking
-
-
1,921
850
Group
2020
£’000
2019
£’000
Trade creditors
343
184
Other creditors
105
82
Taxation and social security
151
133
Accruals and deferred income
135
113
734
512
13. CREDITORS: amounts falling due within one year|Charity
2020
£’000
2019
£’000
185
149
598
91
830
407
1,620
1,430|||
||3,233|2,077||
||Charity
2020
£’000
2019
£’000
208
150
133
75
105
117
75
41|||
||521||383|
|||||
## 13. CREDITORS: amounts falling due within one year
## 14. ANALYSIS OF NET ASSETS BETWEEN FUNDS
|ANALYSIS OF NET ASSETS BETWEEN FUNDS -
GROUP – 2020
Tangible fxed assets
Investments
Net current assets
Long term liabilities
Net assets|Unrestricted funds
General
£’000
Designated
£’000
-
5,155
141
1,211
3,575
630
(409)
-
3,307
6,996|Unrestricted funds
General
£’000
Designated
£’000
-
5,155
141
1,211
3,575
630
(409)
-
3,307
6,996|Unrestricted funds
General
£’000
Designated
£’000
-
5,155
141
1,211
3,575
630
(409)
-
3,307
6,996|Endowment
Funds
Restricted
Funds
Total
2020
£’000
£’000
£’000
-
-
5,155
219
-
1,571
-
5
4,210
-
-
(409)|Endowment
Funds
Restricted
Funds
Total
2020
£’000
£’000
£’000
-
-
5,155
219
-
1,571
-
5
4,210
-
-
(409)|Endowment
Funds
Restricted
Funds
Total
2020
£’000
£’000
£’000
-
-
5,155
219
-
1,571
-
5
4,210
-
-
(409)|Endowment
Funds
Restricted
Funds
Total
2020
£’000
£’000
£’000
-
-
5,155
219
-
1,571
-
5
4,210
-
-
(409)|
|---|---|---|---|---|---|---|---|
|||||||||
||3,307||6,996||219|5|10,527|
|||||||||
|||||||||
|ANALYSIS OF NET ASSETS BETWEEN FUNDS -
GROUP – 2019
Tangible fxed assets
Investments
Net current assets
Long term liabilities
Net assets
ANALYSIS OF NET ASSETS BETWEEN FUNDS -
CHARITY – 2020
Tangible fxed assets
Investments
Net current assets
Long term liabilities
Net assets|Unrestricted funds
General
£’000
Designated
£’000
-
5,274
143
1,284
1,602
630
(630)
-
1,115
7,188
Unrestricted funds
General
£’000
Designated
£’000
-
4,977
141
1,211
3,573
808
(409)
-
3,305
6,996|Unrestricted funds
General
£’000
Designated
£’000
-
5,274
143
1,284
1,602
630
(630)
-
1,115
7,188
Unrestricted funds
General
£’000
Designated
£’000
-
4,977
141
1,211
3,573
808
(409)
-
3,305
6,996|Unrestricted funds
General
£’000
Designated
£’000
-
5,274
143
1,284
1,602
630
(630)
-
1,115
7,188
Unrestricted funds
General
£’000
Designated
£’000
-
4,977
141
1,211
3,573
808
(409)
-
3,305
6,996|Endowment
Funds
£’000
-
225
-
-|Endowment
Funds
£’000
-
225
-
-|Restricted
Funds
£’000
-
-
6
-|Restricted
Funds
£’000
-
-
6
-|Total
2019
£’000
5,274
1,652
2,238
(630)
8,534
Total
2020
£’000
4,977
1,571
4,386
(409)|
|---|---|---|---|---|---|---|---|---|
||1,115||7,188||225||6||
|||||Endowment
Funds
£’000
-
219
-
-
219||Restricted
Funds
£’000
-
-
5
-|||
||3,305||||219||5|10,525|
||||||||||
2020 Annual Report 51
50 St Luke’s Hospice
**Notes to the Financial Statements (continued)** For the Year Ended 31 December 2020 St Luke’s Hospice (Harrow & Brent) Limited
**Notes to the Financial Statements (continued)** For the Year Ended 31 December 2020 St Luke’s Hospice (Harrow & Brent) Limited
## 14. ANALYSIS OF NET ASSETS BETWEEN FUNDS (continued)
|ANALYSIS OF NET ASSETS BETWEEN FUNDS -
CHARITY – 2019
Tangible fxed assets
Investments
Net current assets
Long term liabilities
Net assets
15. FUNDS - 2020
Opening
balance
£’000
Restricted funds
Inpatient funds
6
Day care funds
-
Homecare funds
-
Clinical funds
-|ANALYSIS OF NET ASSETS BETWEEN FUNDS -
CHARITY – 2019
Tangible fxed assets
Investments
Net current assets
Long term liabilities
Net assets
15. FUNDS - 2020
Opening
balance
£’000
Restricted funds
Inpatient funds
6
Day care funds
-
Homecare funds
-
Clinical funds
-|Unrestricted funds
General
£’000
Designated
£’000
-
5,006
143
1,284
1,704
898
(630)
-
1,217
7,188
Income
£’000
Expenditure
£’000
1,606
(1,612)
30
(30)
129
(129)
28
(23)|Unrestricted funds
General
£’000
Designated
£’000
-
5,006
143
1,284
1,704
898
(630)
-
1,217
7,188
Income
£’000
Expenditure
£’000
1,606
(1,612)
30
(30)
129
(129)
28
(23)|Unrestricted funds
General
£’000
Designated
£’000
-
5,006
143
1,284
1,704
898
(630)
-
1,217
7,188
Income
£’000
Expenditure
£’000
1,606
(1,612)
30
(30)
129
(129)
28
(23)|Unrestricted funds
General
£’000
Designated
£’000
-
5,006
143
1,284
1,704
898
(630)
-
1,217
7,188
Income
£’000
Expenditure
£’000
1,606
(1,612)
30
(30)
129
(129)
28
(23)|Endowment
Funds
£’000
-
225
-
-|Endowment
Funds
£’000
-
225
-
-|Endowment
Funds
£’000
-
225
-
-|Restricted
Funds
£’000
-
-
6
-|Restricted
Funds
£’000
-
-
6
-|Restricted
Funds
£’000
-
-
6
-|
Total
2019
£’000
5,006
1,652
2,608
(630)|
Total
2019
£’000
5,006
1,652
2,608
(630)|
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|||||||||||||||
|||||7,188|||225|||6|||8,636|
|||||Expenditure
£’000
(1,612)
(30)
(129)
(23)||||||||||
|||||||Investment
Gains
£’000
-
-
-
-|||Transfers
£’000
-
-
-
-|||Closing
Balance
£’000
-
-
-
5
-
5
24
195
219
4,983
171
1,542
300
6,996
3,305
2
3,307
10,303
10,527||
|Capital funds
Total restricted funds
Endowment funds
Alice Wisbey Capital Fund
D D McPhail
Total endowment funds
Unrestricted funds
Designated fxed asset fund
Designated shops assets fund
Designated risk management fund
Pension liability reserve
Total designated funds
Unrestricted funds
General charitable funds
General non-charitable trading
funds
Total general funds
Total unrestricted funds
Total funds|-||-||-|||-|||-|-||
||6||1,793||(1,794)|||-|||-||5|
||23
202||-
-||-
(2)|||1
(5)|||-
-||24
195|
||225||-||(2)|||(4)|||-||219|
||5,006
267
1,615
300||-
-
-
-||(23)
(96)
(10)
-|||-
-
(63)
-|||-
-
-
-||4,983
171
1,542
300|
||7,188||-||(129)|||(63)|||-||6,996|
||1,218
(103)||5,166
2,631||(3,678)
(2,078)|||(2)
-|||601
(448)||3,305
2|
||1,115||7,797||(5,756)|||(2)|||153||3,307|
||8,303||7,797||(5,885)|||(65)|||153||10,303|
||8,534||9,590||(7,681)|||(69)|||153||10,527|
|||||||||||||||
|||||||||||||||
|15. FUNDS - 2019
Restricted funds
Inpatient funds
Day care funds
Homecare funds
Clinical funds
Capital funds
Total restricted funds
Endowment funds
Alice Wisbey Capital Fund
D D McPhail
Total endowment funds
Unrestricted funds
Designated fxed asset fund
Designated shops assets fund
Designated risk management fund
Pension liability reserve
Total designated funds
Unrestricted funds
General charitable funds
General non-charitable trading
funds
Total general funds
Total unrestricted funds
Total funds|Opening
balance
£’000
-
11
-
-
|Income
£’000
290
18
5
83|Income
£’000
290
18
5
83|Expenditure
£’000
(284)
(29)
(5)
(83)
|Expenditure
£’000
(284)
(29)
(5)
(83)
|Investment
Gains
£’000
-
-
-
-|Investment
Gains
£’000
-
-
-
-|Transfers
£’000
-
-
-
-|Transfers
£’000
-
-
-
-|Closing
Balance
£’000
6
-
-
-|Closing
Balance
£’000
6
-
-
-|
|---|---|---|---|---|---|---|---|---|---|---|---|
||6||-||(6)||-||-|-||
||17||396||(407)||-||-||6|
||20
180||-
1||-
(2)||3
23||-
-||23
202|
||200||1||(2)||26||-||225|
||5,019
413
1,496
300||-
-
-
-||(55)
(98)
(9)
-||-
-
128
-||42
(48)
-
-||5,006
267
1,615
300|
||7,228||-||(162)||128||(6)||7,188|
||1,514
(244)||5,007
2,411||(5,150)
(2,443)||14
-||(167)
173||1,218
(103)|
||1,270||7,418||(7,593)||14||6||1,115|
||8,498||7,418||(7,755)||142||-||8,303|
||8,715||7,815||(8,164)||168||-||8,534|
|||||||||||||
|||||||||||||
2020 Annual Report 53
52 St Luke’s Hospice
**Notes to the Financial Statements (continued)** For the Year Ended 31 December 2020 St Luke’s Hospice (Harrow & Brent) Limited
**Notes to the Financial Statements (continued)** For the Year Ended 31 December 2020 St Luke’s Hospice (Harrow & Brent) Limited
## 15. FUNDS (continued)
A Pension Liability Reserve was set up in 2016 to reflect potential increases in the pension liability. When it was provided in full in 2017, the reserve was reduced. The balance in this fund will be used towards the cost of any future buy-out of the liability.
The late Mrs Alice Wisbey made a bequest to the Hospice with the instruction that the income therefrom should be applied for the comfort of the nursing staff. This is split between Income and Capital funds.
The restricted funds represent grants and donations received, from Trusts and individuals, where the use of the funds was restricted to a specific purpose by the donor. These funds have included contributions towards the cost of our In-patient unit, Day care services, Community and Homecare services, to the provision of complementary therapies and a number of other items.
The D D McPhail Charitable Settlement originally gave £150,000 as an endowment fund. No instructions were given about income so this is applied for the general purposes of the charity. The difference between the original fund value and the current fund value arises through revaluation of the underlying investment.
The designated fixed asset fund represents the net book value of the Hospice’s fixed assets. It has been set up to assist in identifying funds which are not free funds. Similarly the designated shops asset fund has been set up to identify fixed assets of the shops company not covered by their working capital.
The designated risk management fund represents funds to provide a cushion against unexpected costs or shortfalls of income and thus to support the long-term future of the hospice. The balance in this fund as at 31 December 2020 was £1,542k most of which is managed by Rathbones, our investment manager.
The surplus arising out of the activities during the year of £1,993k resulted in the increase in unrestricted general charitable funds. The surplus for the year was generated mainly on account of COVID support from NHS England, Support from HM Treasury through the Job Retention scheme and Increased NHS Commissioning Income.
The general funds represent the unrestricted funds of the group and are therefore “free reserves”.
## 16. OPERATING LEASE COMMITMENTS
The group has the following total commitments under non-cancellable operating leases:
|17. CAPITAL COMMITMENTS
The group has no capital commitments at the year-end (2019: none).
Group
2020
£’000
2019
£’000
Amounts due:
Within 1 year
489
510
Within one to two years
466
501
Within two to fve years
911
1,206
After fve years
417
657
2,283
2,874|Charity
2020
£’000
2019
£’000
63
60
63
62
188
188
165
237|Charity
2020
£’000
2019
£’000
63
60
63
62
188
188
165
237|Charity
2020
£’000
2019
£’000
63
60
63
62
188
188
165
237|Charity
2020
£’000
2019
£’000
63
60
63
62
188
188
165
237|
|---|---|---|---|---|
||||||
|||479||547|
||||||
||||||
## 17. CAPITAL COMMITMENTS
The group has no capital commitments at the year-end (2019: none).
## 18. RELATED PARTY TRANSACTIONS
During the year, Trustees, Senior Executive Team members and their close family members donated £8,958 to the Hospice (2019: £3,481). There were no other transactions with related parties during the year (2019: none).
## 19. STATEMENT OF FINANCIAL ACTIVITIES IN THE PREVIOUS YEAR Unrestricted Restricted Endowment Total (2019)
|2019)
Income from:
_Donations and legacies_
. Donations
. Legacies
_Charitable Activities_
. NHS commissioning
. Other income
_Other trading activities_
. Fundraising events
. Gross income from shops and lottery
_Investments_
Total income|2019)
Income from:
_Donations and legacies_
. Donations
. Legacies
_Charitable Activities_
. NHS commissioning
. Other income
_Other trading activities_
. Fundraising events
. Gross income from shops and lottery
_Investments_
Total income|Unrestricted
funds
£’000
Restricted
Funds
£’000
Endowment
Funds
£’000
Total
2019
£’000
1634
150
1784|Unrestricted
funds
£’000
Restricted
Funds
£’000
Endowment
Funds
£’000
Total
2019
£’000
1634
150
1784|Unrestricted
funds
£’000
Restricted
Funds
£’000
Endowment
Funds
£’000
Total
2019
£’000
1634
150
1784|Unrestricted
funds
£’000
Restricted
Funds
£’000
Endowment
Funds
£’000
Total
2019
£’000
1634
150
1784|Unrestricted
funds
£’000
Restricted
Funds
£’000
Endowment
Funds
£’000
Total
2019
£’000
1634
150
1784|
|---|---|---|---|---|---|---|
||
hops and lottery|,
1,071||-|-
-|,
1,071|
||||2,705
1,873
43|150
246
-|-
-
-|2,855
2,119
43|
||||1,916|246||2,162|
||||338
2,412|-
-|-
-|338
2,412|
||||2,750|-|-|2,750|
||||47|-|1|48|
||||7,418|396|1|7,815|
||||||||
||||||||
2020 Annual Report 55
54 St Luke’s Hospice
**Notes to the Financial Statements (continued)** For the Year Ended 31 December 2020 St Luke’s Hospice (Harrow & Brent) Limited
**Notes to the Financial Statements (continued)** For the Year Ended 31 December 2020 St Luke’s Hospice (Harrow & Brent) Limited
## 19. STATEMENT OF FINANCIAL ACTIVITIES IN THE PREVIOUS YEAR (continued)
|Expenditure on:
_Raising funds_
- Fundraising costs
. Fundraising events costs
. Shops and lottery expenditure
. Investment management costs
_Charitable Activities_
.Inpatient services
. Day care services
. Homecare services
. Overall clinical support
Total expenditure
Net expenditure before gains on
investments
Net gains on investments
Net expenditure|Unrestricted
funds
£’000
Restricted
Funds
£’000
Endowment
Funds
£’000
Total
2019
£’000
673
-
-
673
|Unrestricted
funds
£’000
Restricted
Funds
£’000
Endowment
Funds
£’000
Total
2019
£’000
673
-
-
673
|Unrestricted
funds
£’000
Restricted
Funds
£’000
Endowment
Funds
£’000
Total
2019
£’000
673
-
-
673
|Unrestricted
funds
£’000
Restricted
Funds
£’000
Endowment
Funds
£’000
Total
2019
£’000
673
-
-
673
|Unrestricted
funds
£’000
Restricted
Funds
£’000
Endowment
Funds
£’000
Total
2019
£’000
673
-
-
673
|
|---|---|---|---|---|---|
||267
2,736
10||-
-
267
-
-
2,736
-
2
12|||
|||3,686|-|2|3,688|
|||1,337
266
914
1,552|283
29
5
90|-
-
-
-|1,620
295
919
1,642|
|||4,069|407|-|4,476|
|||7,755|407|1|8,164|
|||(337)
142|(11)
-|(1)
26|(349)
168|
|||(195)
(11)
25|||(181)|
||EVALUED EARNING SCHEME
multi-employer pension scheme providing a
mbers.
, a multi-employer scheme which provides
scheme is a defned beneft scheme in the
ain sufcient information to enable it to acc
. Therefore it accounts for the scheme as a||||defned
benefts t
UK.
ount for
defned|
## 20. THE CAREER AVERAGE REVALUED EARNING SCHEME (PENSIONS TRUST)
Before 1 May 2015, the group offered a multi-employer pension scheme providing a defined benefit (career average) pension for members.
The company participated in the scheme, a multi-employer scheme which provides benefits to some 36 non-associated employers. The scheme is a defined benefit scheme in the UK.
It is not possible for the company to obtain sufficient information to enable it to account for the scheme as a defined benefit scheme. Therefore it accounts for the scheme as a defined contribution scheme.
Regulator and Technical Actuarial Standards issued by the Financial Reporting Council, set out the framework for funding defined benefit occupational pension schemes in the UK.
The scheme is classified as a ‘last-man standing arrangement’. Therefore the company is potentially liable for other participating employers’ obligations if those employers are unable to meet their share of the scheme deficit following withdrawal from the scheme. Participating employers are legally required to meet their share of the scheme deficit on an annuity purchase basis on withdrawal from the scheme.
A full actuarial valuation for the scheme was carried out at 30 September 2016. This actuarial valuation showed assets of £60.45m, liabilities of £85.3m and a deficit of £24.6m.
A full actuarial valuation for the scheme was carried out at 30 September 2019. This valuation showed assets of £79m, liabilities of £93.9m and a deficit of £14.9m. To eliminate this funding shortfall, the Trustee asked the participating employers to pay additional contributions to the scheme as follows:
Deficit contributions
|From 1 April 2021 to 30 September
2027:|£1,530,000 per annum
(payable monthly and increasing by 3.0% each year
on 1st April)|
|---|---|
The recovery plan contributions are allocated to each participating employer in line with their estimated share of the scheme liabilities.
Where the scheme is in deficit and where the company has agreed to a deficit funding arrangement the company recognises a liability for this obligation. The amount recognised is the net present value of the deficit reduction contributions payable under the agreement that relates to the deficit. The present value is calculated using the discount rate detailed in these disclosures. The unwinding of the discount rate is recognised as a finance cost.
|PRESENT VALUES OF PROVISION
Present value of provision|31 December 2020
(£000s)|31 December 2019
(£000s)
704|
|---|---|---|
||477|704|
||||
||||
The scheme is subject to the funding legislation outlined in the Pensions Act 2004 which came into force on 30 December 2005. This, together with documents issued by the Pensions
2020 Annual Report 57
56 St Luke’s Hospice
**Notes to the Financial Statements (continued)** For the Year Ended 31 December 2020 St Luke’s Hospice (Harrow & Brent) Limited
## 20. THE CAREER AVERAGE REVALUED EARNING SCHEME (PENSIONS TRUST) (continued)
|PENSIONS TRUST) (continued)|||||
|---|---|---|---|---|
|RECONCILIATION OF OPENING AND CLOSING PROVISIONS|||Year ended||
||||31 December 2020||
||||(£000s)||
|Provision at start of period|||704||
|Unwinding of the discount factor (interest expense)|||9||
|Defcit contribution paid|||(74)||
|Re measurements - impact of any change in assumptions|||14||
|Re measurements - amendments to the contribution schedule|||(176)||
|Provision at end of period|||477||
||||||
|RECONCILIATION OF OPENING AND CLOSING PROVISIONS|2020||2019||
|Amounts due within one year|£’000
68||£’000
74||
|Amounts due after one year|409||630||
||477||704||
*includes defined contribution schemes and future service contributions (i.e. excluding any deficit reduction payments) to defined benefit schemes which are treated as defined contribution schemes.
|ASSUMPTIONS
Rate of discount|31 December 2020
% per annum
31 December 2019
% per annum|31 December 2020
% per annum
31 December 2019
% per annum|
|---|---|---|
||||
||0.42|1.31|
||||
||||
The discount rates shown above are the equivalent single discount rates which, when used to discount the future recovery plan contributions due, would give the same results as using a full AA corporate bond yield curve to discount the same recovery plan contributions.
2020 Annual Report 59
58 St Luke’s Hospice
St Luke’s Hospice, Kenton Grange, Kenton Road, Harrow, HA3 0YG t: 020 8382 8000 e: info@stlukes-hospice.org @stlukesharrow /stlukeshospice stlukeshospice www.stlukes-hospice.org